Abstract
PurposeThis study examines the association between behavioral loyalty and satisfaction scores for banks. Past work has generally viewed the link between satisfaction and loyalty to be one way – satisfaction causes or induces loyalty. This study suggests the relationship may not be just one-way, and that current loyal behavior towards banks (measured as using 1, 2 or 3 banks) may be related to satisfaction scores: the more banks used, the lower the satisfaction score.Design/methodology/approachThe study employs large-scale survey data from the UK YouGov panel. It analyses satisfaction scores for 16 banks, from consumers who use either 1, 2 or 3 banks.FindingsBanks receive lower satisfaction scores from their customers who use one other bank, compared to customers who do not use one other bank. Furthermore, users of two banks are less satisfied with either of them compared to users of one, and users of three banks are, on average, less satisfied with each of them compared to users of two.Practical implicationsThe results will help managers and researchers better understand satisfaction scores. For example, part of the reason why a bank obtains low satisfaction scores could be that it has a large proportion of dual or multi-bank customers. Next, knowing that satisfaction scores differ according to the number of banks currently used may contribute to a more nuanced understanding of the link between satisfaction and future loyalty.Originality/valueThe study is highly original in proposing a novel hypothesis relating to bank usage and how it relates to satisfaction scores.