Determinants of customer loyalty in Yemen banking industry

The purpose of this research is to examine customer motivations to use the banking system in Yemen. It remains unpredictable as the rise of new types of banking systems for example, Automated Teller Machines (ATM), internet banking, developed financial markets and worldwide competition have constrained banks to investigate the significance of customer loyalty. Therefore, research needs to focus on these changes within the banking system. According to Central Bank of Yemen,(2008)Regulators in Yemen are paying attention to increase the number of bank client because of the important role of banking to the economy (Alkibsi& Lind, 2011).The majority of people still do not use banking services to facilitate their financial needs in Yemen. Therefore, for banks to gain customer loyalty and to offer them what they need has become a considerable challenge for banks in Yemen. This research paper aims to provide better awareness of the factors that influencing loyalty among customers in the Yemen banks. The study is a quantitative research; 200 questionnaires were distributed to bank customers in Yemen. Statistical Package for the Social Sciences SPSS were used for Analysis to examine the contribution of independent variables in predicting the dependent variable customer loyalty.The findings showed that the five factorsservice quality, brand image, corporate social responsibility, satisfaction and trust are significantly and positively influence the customer’s loyalty in Yemen.The study has had a significant contribution towards identifying the factors that influencingcustomer loyalty in Yemen, which might guide bankers, policy makers and business managers to use the right strategy in order to attract more customersand maintain their loyalty in Yemenretail banks.