Literature review

Purpose First, to investigate the relationship between customer perception of service quality and bank financial performance in the new context of the automated banking environment in Australia. Second, to test for the mediating role of customer satisfaction in that relationship. Design/methodology/approach Reviews a very large literature and numerous previous empirical investigations of service quality. Defines automated service quality. Proposes a mediated model linking service quality to banks' financial performance through customer satisfaction in the context of the automated retail banking, and tests it by structural equation modeling. Findings Customer satisfaction is confirmed as a mediator in the relationship between automated service quality and financial performance. On the basis of empirical research carried out in the retail banking market, this paper proposes a structural equations model enabling us to reach the conclusions that satisfaction together with personal switching costs are antecedents leading directly to customer loyalty, with the former exerting the greatest influence; and perceived quality is a consequence of satisfaction. At the same time, the paper shows that the degree of elaboration in the bank selection process does not have a moderating influence on the causal relationships between satisfaction/switching costs and customer loyalty. Presents the findings of a study performed on data from a large banks retail-banking operations. Illustrates the relationship of customer satisfaction to customer loyalty, and customer loyalty to profitability, using multiple measures of satisfaction, loyalty, and profitability. An estimate of the effects of increased customer satisfaction on profitability (assuming hypothesized causality) suggests that attainable increases in satisfaction could dramatically improve profitability. In recent years, there has been a resurgence of interest in the value construct among both marketing researchers and practitioners. Despite a growing body of research, it is still not clear how value interacts with related marketing constructs. Researchers have called for an investigation of the interrelationship between customer satisfaction and customer value to reduce the ambiguities surrounding both concepts. Investigates whether customer value and satisfaction represent two theoretically and empirically distinct concepts. Also addresses whether value is a better predictor of behavioral outcomes than satisfaction in a business marketing context. Two alternative models are developed and empirically tested in a cross-sectional survey with purchasing managers in Germany. The first model suggests a direct impact of perceived value on the purchasing managers intentions. In the second model, perceived value is mediated by satisfaction. This research suggests that value and satisfaction can be conceptualized and measured as two distinct, yet complementary constructs.

Competition; Competitive advantage In the modern day business world the customer has much more choice. Than they had in the past, which transposes into the fact that if a customer Is not happy with a particular service or product or in the way it is Presented a similar product will be sourced elsewhere. Pratley Engineering is a company that has been in business since 1948 and sells a plethora of products and services. The focus of this study is on the Electrical division of Pratley who sells its products to electrical Wholesalers who in turn sell onwards to end users. In the past decade, Pratley almost had a monopoly and they could dictate .The terms at which they sold to customers. A paradigm shift has occurred. With various local competitors as well as competition from imported Products which come into the country at a very low price especially products from India and China. This has meant that Pratleys customers .Now have various choices in terms of purchasing cable glands, which Serves as the electrical divisions primary product. The company exercises very strict policies and electrical wholesalers. Continuously complain about these policies to internal sales staff and sales. Representatives. This has resulted in many of Pratleys customers selling. Competitor products to avoid dealing with Pratley. The obvious analogy .that can be drawn is that should Pratley not ensure that their customers Are satisfied with their products and service, they could lose market share, Which in turn would impact bottom line profitability adversely. The researcher will attempt to identify specific policies which Pratley. Enforces on electrical wholesalers that negatively impact on the. Wholesalers customer satisfaction levels. Pratley management believes it. Manufactures the best product on the market and believes that this fact Should sell the product. Practical implications The proposed model can guide the formulation of marketing strategies, relating to the delivery of automated services, which have the potential to achieve high levels of customer satisfaction and financial performance. Originality/value Contributes to the current body of knowledge by improving understanding of the main issues relating to the effect of service quality on bank profitability, and the mediating role of customer satisfaction in this new banking context.

Reference
Mohammed Al-Hawari, (Central Queensland University, Queensland, Australia), Tony Ward, (Central Queensland University, Queensland, Australia) Asuncin Beerli, (University of Las Palmas de Gran Canarias, Faulted Cadencies Economics y Empresariales, Las Palmas de Gran Canarias, Canary Islands, Spain), Josefa D. Martin, (University of Las Palmas de Gran Canarias, Faulted Cadencies Economics y Empresariales, Las Palmas de Gran Canarias, Canary Islands, Spain), Austin Quintana. Roger Hallowell, (Harvard Business School, Boston, MA, USA) Andreas Eggert, (Assistant Professor of Marketing, Department of Marketing, University of Kaiserslautern, Kaiserslautern, Germany), Wolfgang Ulaga, (Professor of Marketing, Head of Marketing Department, EDHEC School of Management, Lille, France)