Dissertation (MA Business Administration)There is a debate in services marketing literature on the relationship that exists between service quality and customer satisfaction on the one hand and customer loyalty on the other. While there are studies which have shown a positive and strong relationship between variables of the first set to customer loyalty, there are also studies which reported no relationship. This study was put in place to investigate on the factors which influenced customer loyalty. The study was undertaken by taking the case of the banking industry, particularly, NMB in Dodoma. The study specifically, intended to identify factors affecting customer loyalty in banking industry, analyse the relationship between perceived service quality and customer loyalty and analyse the relationship between customer satisfaction and the customer loyalty. The study was conducted using a holistic case study design by considering only one Bank (NMB main branch in Dodoma). Data were collected from 102 respondents, of which 100 were customers and two were from the management team. While data from customers were gathered using questionnaire, that from management was obtained using interview. Data were principally analyzed using a linear regression that was supplemented by frequencies and percentages. SPSS and Excel spreadsheet were of significant help in undertaking data analysis. A host of factors have been found to impact customer loyalty. These include Bank location, customer services and types of accounts offered, internet and mobile banking service, Bank charges and bank offers, among others. Results further, showed that, offering quality services had no relationship with customer loyalty; however, they show positive and a significant relationship between customer satisfaction and customer loyalty. The study recommends that, Bank managers should always consider the needs of customers. The loyalty comes in the customers once their stated as well as unstated needs were fulfilled. It can be the current needs or the ones which could be desired in future.