The Effects of Financial Literacy, Service Quality, and Corporate Reputation on Customer Investment Loyalty: The Mediating Roles of Trust and Perceived Value

Abstract

In the competitive financial services sector, firms need to align financial literacy initiatives with marketing and management strategies to sustain customer loyalty. Financial literacy empowers customers to make informed choices, while service quality and corporate reputation act as critical relational drivers. However, limited research had examined how these factors jointly shape customer investment loyalty through psychological and value-based mechanisms. This study examined the effects of financial literacy, service quality, and corporate reputation on customer investment loyalty, with the mediating roles of trust and perceived value. A quantitative research design was employed. Data were collected through structured questionnaires from 400 individual investors and clients of financial institutions in Pakistan. The hypothesized model was tested using structural equation modeling (SEM). The results revealed that financial literacy, service quality, and corporate reputation significantly enhanced customer investment loyalty. Moreover, trust and perceived value partially mediated these relationships, confirming their critical roles in translating marketing and management practices into long-term customer commitment. The study contributed to marketing and management literature by integrating financial literacy into loyalty research and highlighting the mediating roles of trust and perceived value.