THE EFFECTS OF THE THREE SIDES OF THE SERVICE TRIANGLE MODEL ON CUSTOMER RETENTION IN THE FINANCIAL SERVICE SECTOR OF GHANA

The elements of the service marketing triangle model are empirically found to influence the level of customer retention in various service sectors. In this paper, the effects of the three sides of the service marketing triangle model on customer retention in the financial services sector of Ghana were examined. Probability sampling techniques were used to select 384 each of customers and employees from banks, non-bank financial institutions, microfinance institutions and insurance companies. Data analysis was done using Pearson’s correlation test, partial correlation test and Stepwise Multiple Linear Regression analysis. Findings revealed that interactive market practice is significantly positively related to customer retention (r = .845, p < .05) in the financial services sector of Ghana. Also, external market orientation (r = .857, p < .05) and internal market practice (r = .843. p < .05) highly positively relate to customer retention. Moreover, interactive market, external marketing and internal marketing significantly predict customer retention (p = .000) and account for 90.4% of variance on it. Therefore, each of the three sides of the service marketing triangle impacts customer retention in the financial services sector of Ghana. It is therefore recommended that financial service providers in Ghana deliver services that are structured based on principles of the services marketing triangle model.