RESEARCH ON THE RELATIONSHIP BETWEEN INTERNAL MARKETING, EMPLOYEE LOYALTY, AND SERVICE QUALITY IN CHINA’S COMMERCIAL BANKING SECTOR

Abstract

As the global financial economy grows, more foreign banks are entering China’s financial market, increasing competition in the banking sector. While commercial banks focus on attracting external customers, they often neglect internal marketing and employee loyalty, leading to high turnover and poor service quality. This study explores the relationship between internal marketing, employee loyalty, and service quality in China’s commercial banking sector using a quantitative research method. A questionnaire survey was conducted among 353 employees from six commercial banks in Qingdao, Shandong Province, China. Data were analyzed using SPSS statistical software, with descriptive statistics and regression analysis employed. Findings indicate that internal marketing significantly enhances employee loyalty and service quality, and that employee loyalty mediates the relationship between internal marketing and service quality. The study supports the Service Profit Chain Model, emphasizing that satisfied and loyal employees contribute to better customer satisfaction and business performance. Implications for managers and HR professionals are discussed.