Effect of Customer Service Quality on Consumer Loyalty in First Bank Nigeria, Lagos State

Customer loyalty is a strategic asset for commercial banks, and understanding how service quality shapes it is essential for sustaining competitive advantage in Nigeria's crowded retail banking market. This study examined the effect of customer service quality on consumer loyalty among First Bank Nigeria customers in Lagos State, South West Nigeria. A descriptive survey design was adopted, and data were collected from 320 retail banking customers across four First Bank branches in Lagos Island and Ikeja through structured questionnaires. Service quality was measured using five SERVQUAL dimensions: tangibles, reliability, responsiveness, assurance, and empathy. Consumer loyalty was assessed through repurchase intention, word-of-mouth referral, and account retention behaviour. Data were analysed using descriptive statistics and multiple linear regression at a 5% significance level. Results showed that reliability (beta = 0.42, p < 0.01) and assurance (beta = 0.38, p < 0.01) were the strongest predictors of consumer loyalty. Responsiveness had a significant positive effect (beta = 0.26, p < 0.05), while tangibles had the weakest influence. Overall service quality explained 61.3% of the variance in consumer loyalty. Customers who rated service quality above average were 3.4 times more likely to refer the bank to others. The study concludes that reliability and assurance are the most critical service quality dimensions for sustaining loyalty in Lagos State commercial banking and recommends targeted staff training in complaint resolution and service consistency for First Bank Nigeria branches. Keywords: customer service quality, consumer loyalty, SERVQUAL, First Bank Nigeria, Lagos State