Purpose – This paper examines the relationship between Employee Brand Behaviour (EBB) and Customer Loyalty (CL) and tests whether Perceived Service Quality (PSQ) mediates this relationship in a high-contact service setting.
Design/methodology/approach – A quantitative, cross-sectional survey was conducted with retail banking customers in Haryana, India. Using purposive intercept sampling, data were collected from customers of HDFC Bank, ICICI Bank, and Axis Bank following recent frontline interactions. A total of 262 valid responses were analysed using SmartPLS. PSQ was modelled as a reflective–reflective second-order construct (SERVQUAL dimensions), and hypotheses were tested via PLS-SEM with bootstrapping (5,000 resamples).
Findings – Results show that EBB positively and significantly influences customer loyalty. EBB also enhances perceived service quality, which in turn increases loyalty. Bootstrapped mediation analysis confirms a significant indirect effect of EBB on CL through PSQ, indicating complementary (partial) mediation.
Originality/value – The study integrates internal branding and service quality perspectives by evidencing a behavioural pathway through which brand-consistent employee conduct strengthens loyalty via service quality perceptions in retail banking
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