The Impact of Customer Relationship Strategies on Consumer Satisfaction and Loyalty in Financial Institutions: Evidence from Albania and Kosovo as Western Balkan Countries
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Keywords:
Microfinance Institutions, Consumer Satisfaction, Consumer Loyalty, Perceied Value Determinants, Factor AnalysisAbstract
The majority of the studies related to the attitude towards consumer loyalty in the microfinance
institutions face two major limitations. First, the studies aim to investigate the performance from the company’s
perspective, and second, they focus primarily on the factors that are exogenous to the company. This study
investigates the key determinants of customer satisfaction and loyalty in microfinance institutions (MFIs)
operating in Albania and Kosovo and the Western Balkans. Grounded in customer behavior theory and
supported by the expectation-confirmation model, the research proposes and tests a conceptual framework
linking perceived value, customer satisfaction, and loyalty. Using a quantitative approach, data were collected
from 350 microfinance clients across urban and rural regions in Kosovo through a structured questionnaire.
The results confirmed that perceived value significantly influences customer satisfaction, which in turn
strongly affects customer loyalty. Furthermore, customer satisfaction mediates the relationship between
perceived value and loyalty. The study provides practical implications for improving customer relationship
strategies in microfinance organizations across emerging markets.
This study follows a positivist approach as it is based on the existing theories and knowledge. The theoretical
and empirical literature review sheds light on the importance of consumer satisfaction and loyalty from the
success perspective of any company.
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