External exigencies and customer loyalty nexus in Nigeria retail banks

Abstract

Customer loyalty is crucial in the retail banking sector, given the increasing competition within the industry and the emerging non-traditional players. This paper examines the influence of external exigencies on customer loyalty of retail banks in Nigeria. Data used in this study was collected from 424 customers of eight (8) selected banks located in Ibadan, a metropolitan city in Nigeria. The primary statistical tool used was Partial Least Square Structural Equation Modelling (PLS-SEM) in analysing data collected. The study's findings revealed that external exigencies as a construct, has a positive influence on customer loyalty with internal appearance of bank and attractive advertisement accounting for the main factors contributing to loyalty. Similarly, External Exigencies were found to have positive influence on Customer Loyalty to their banks, at significant level. The managerial implication of this study is the consideration of non-core banking factors that can enhance customer loyalty in retail banking.