Business Department, Jomo Kenyatta University of Agriculture & Technology, Kenya
Online published on 30 November, 2019.
This study examined the effect of trust on customer loyalty in commercial banks. The target population consisted of 414, 000 retail customers of commercial banks in Nakuru Municipality, Nakuru County of Kenya. Data was collected from 381 respondents drawn from a cross-section of customers of commercial banks in Nakuru. A survey research design was used in this study. Questionnaires were used to collect data. Analysis of the survey responses was done using Statistical Package for Social Sciences (SPSS). Pearson Correlation was used in analyzing the data and testing of hypotheses. Pearson correlation was used to determine the relationship between trust and customer loyalty. The study findings of correlation analysis showed that trust positively and significantly influenced customer loyalty. The finding of this research supports the hypothesis that trust significantly influences customer loyalty hence any strategists and managers aiming to achieve customer loyalty should pay close attention to trust. Further research studies should be done on other aspects that contribute towards customer loyalty.
Banks, Customer Loyalty, Trust