STIMULATING LOYALTY THROUGH CUSTOMER EXPERIENCE VIA MARKETING OUTCOMES IN THE BANKING SECTOR
Abstract: Literature positions customer experience as a strategic driver of competitive advantage in the banking sector. However, gaps remain in emerging-market research, where contextual factors can shape experiential perceptions in different ways. Addressing these gaps through empirical research provides both theoretical advancement and practical guidance for banks navigating competitive and transitional environments. This study investigates the relationships among customer experience, customer satisfaction, word-of-mouth, and behavioural loyalty intentions in the Serbian banking sector. The primary objective is to examine whether customer satisfaction and word-of-mouth mediate the effect of customer experience on behavioural loyalty intentions. Empirical data were collected from bank customers in Serbia, comprising 616 valid responses, and analysed using structural equation modelling. The findings indicate that customer experience exerts a statistically significant positive effect on behavioural loyalty intentions, both directly and indirectly. Customer satisfaction was found to partially mediate the relationships between customer experience and behavioural loyalty intentions, as well as between customer experience and word-of-mouth. In addition, customer satisfaction and word-of-mouth jointly demonstrate a partial serial mediating effect on the relationship between customer experience and behavioural loyalty intentions. These results suggest that customer experience should be conceptualised as a strategic antecedent of customer loyalty, operating through both affective and communicative mechanisms. The study contributes to the existing literature by extending the understanding of loyalty formation in banking and by providing context-specific evidence from Serbia. The findings also offer managerial implications, indicating that more effective management of customer experience, satisfaction, and customer advocacy may contribute to stronger customer retention and positive recommendation behaviour.
Keywords: customer experience; customer satisfaction; word-of-mouth; behavioural loyalty intentions; customer loyalty; banking sector; Serbia.