The Impact of Private Clients' Loyalty on Bank's Product Supply

The study is of current interest due to the lack of a unified approach to measuring customer satisfaction with bank products in the face of rapidly changing client preferences in the era of the ongoing global financial crisis. The purpose of the study is to identify the relationship between the loyalty of private customers of Russian banks and their demand for bank products, and recommendation development for improvement of the products of Russian banks. In the course of the study a sample of 455 observations was obtained. Based on this data the loyalty and customer satisfaction with products indexes were calculated. After that the position maps of Russian banks were constructed. Then the factor analysis of loyalty and customers’ satisfaction with products was carried out. Also, the influence of loyalty on the demand and bank products supply was assessed. To estimate the likelihood of demand for a particular bank product several logit-models were assessed. As a result of research the recommendations for Russian banks to increase the level of customer loyalty and satisfaction with bank product supply were developed. The research consists of 71 pages. It includes 11 pictures, 6 tables and 15 appendixes.