The Influence of Selected Antecedents of Employees and Customers on Financial Performance in Indian Banking Industry: An Empirical Analysis

Abstract

The paper attempts to deal with role of employee level and customer variables on the financial performance of banks. We studied relationship between Employee Satisfaction and Employee Loyalty and how Employee Training, Employee Loyalty and Shared Understanding are affecting Perceived Service Quality (PSQ). Further we studied PSQ and its effect on Customer Satisfaction and Customer Satisfactions effect on Customer Loyalty. To understand the final phase of our study, we studied Customer loyaltys effect on Brand Equity and its impact on Financial Performance. Overall we tried to see how employee and customer level variables are related and finally affect profitability of banks. We did regression analysis and found significant relationships among most of the variables, however no relationship is found between shared understanding and PSQ. We can conclude that we should pay attention to employee training as it in turns affecting customer level which is affecting financial performance in terms of brand equity.

Keywords: Brand equity, Customer loyalty, Employee satisfaction, Financial performance, Perceived service quality

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