Economic Analysis of Mutual Satisfaction in Bank–Customer Credit Relationships: The Role of Service Quality, Credit Risk, Repayment, and Interest Rates

Abstract

This study aimed to economically analyze mutual satisfaction in bank–customer credit relationships, with emphasis on the roles of service quality, credit risk, timely repayment, and interest rates in explaining customer satisfaction with the bank and bank satisfaction with credit customers. This applied study used a descriptive-survey and field-based design. The statistical population consisted of credit customers of 21 Bank Saderat branches in Alborz Province and bank employees involved in credit activities. From approximately 1,800 credit customers, 345 were selected based on the Krejcie and Morgan table, while all 80 eligible employees were included through census sampling. Data were collected using two researcher-developed questionnaires containing 37 items for customer satisfaction and 24 items for bank satisfaction. Cronbach’s alpha coefficients for the study constructs ranged from 0.73 to 0.84. Data were analyzed using SPSS and LISREL through one-sample t-tests, confirmatory factor analysis, and structural equation modeling. Customer satisfaction with the bank was significantly above the criterion level (M=37.80, t=51.832, p<0.001), and bank satisfaction with credit customers was also significantly above the criterion value (M=28.30, t=179.669, p<0.001). Service quality had a positive and significant effect on customer satisfaction (β=0.88, t=2.01), whereas customer expectations had no significant effect (β=-0.04, t=-0.11). Customer satisfaction was significantly associated with loyalty (β=1.04, t=3.32) and the complaints-related construct (β=0.75, t=2.95). In the bank model, credit risk (β=0.69, t=2.58), timely repayment (β=0.58, t=2.86), and approved interest rates (β=0.62, t=3.14) were all positively and significantly related to bank satisfaction. Model fit was acceptable for both the customer model (χ²/df=1.70, RMSEA=0.079) and the bank model (χ²/df=1.74, RMSEA=0.081). Mutual satisfaction in credit relationships is strengthened when banks provide high-quality services and customers demonstrate reliable credit and repayment behavior. Credit relationship management should therefore integrate customer experience, credit-risk control, and economically balanced interest-rate policies.