The Mediation role of Customer Trust and Satisfaction on Green Banking and Customer Loyalty in toursim industry

Abstract

The green banking approach is introduced by banks to protect the environment, for the sake of improving tourism and hospitality, from degradation as banks are the main source of funding in the economy so banks take initiatives to benefit the environment by providing green banking initiatives as banks provide funds to different sectors that also include those at are producing harmful elements and products that destroy the environment so the bank step forward introduces green baking as the bank stakeholders are customers so it is important to understand their point of view about this initiative taken by banks are they satisfy with a bank and trust the banks that they are taking a right decision because this satisfaction and trust lead towards customer loyalty. Customer loyalty is the measurement of post-purchase behaviour of customers if the behaviour is positive loyalty increases so the profitability and sales increase as customer loyalty indicated recommendations. So customer perspectives also matter in the green banking approach on which few studies were conducted in the past.  So this study analyzes the impact of green banking practices and products and green financing projects on customer loyalty through customer trust and customer satisfaction. The two green banking aspects: operations related to banks' internal operation practices and customer-related that include green banking products, and green banking financing projects that are socially responsible projects of banks are analyzed separately which is missing in the existing literature. Data were collected from respondents through structured questionnaires using convenience sampling covering the area of Lahore, Pakistan, and analyzed the data using PLS (SEM). The results show a full mediation relationship between green banking financing projects and customer loyalty through customer satisfaction and all other hypotheses are accepted by partial mediation. This study contributes to the existing literature by adding customers' perspectives on the green banking approach.