A study on the effect of organization’s reputation on service quality and customer’s satisfaction and loyalty (The organization under study: Tose'e Taavon Bank of Tehran Province)

Abstract

A strong and positive reputation of the company offers a sign and a symbol of the company and reduces transaction costs and creates many benefits for the organization. Researchers believe that customers of good reputation organizations, show supportive behaviors (for the organization). Therefore, a good reputation causes the organization’s benefit, because the customers attribute the high levels of qualifications to the company and as a result it supports the company. In this study, we have tried to evaluate the effect of organization’s reputation on service quality, customer’s satisfaction and loyalty (the organization under study: Cooperative Development Bank of Tehran Province). The study population consists of all customers of Cooperative Development Bank in Tehran Province. Statistical sample size was calculated using the formula sample of 384 participants. This research project is practical in terms of its objectives and descriptivesurvey in terms of its nature. To test the research hypotheses and to get the results, LISREL software and path analysis test was employed. The results obtained from the hypotheses test used in the project showed that the reputation of the organization has a significant relationship with perceived service quality and customer’s satisfaction and loyalty. Furthermore, the customer’s satisfaction has a significant relationship with the customer’s loyalty in the Cooperative Development Bank.