International Journal of Marketing Strategy, Operations Research and Organizational Behavior 1132 ISSN:2051-9820, Vol.31, Issue.1 © RECENT SCIENCE PUBLICATIONS ARCHIVES | April 2015|$25.00 | 27704288| *This article is authorized for use only by Recent Science Journal Authors, Subscribers and Partnering Institutions* The Mediating Role of Customer Satisfaction in the Relationship between Factors Influencing Customers’ Loyalty towards Financial Services in Saudi Arabia Yaser Almansour College of Business, Al Balqa Applied University, Jordan Email:yaser111956@yahoo.com Ali Al-hajla College of Business, Taibah University, Saudi Arabia Email: ahajla@taibahu.edu.sa Bashar Almansour College of Business, Taibah University, Saudi Arabia Email: bmansour@taibahu.edu.sa ABSTRACT The aim of this study is to investigate the mediating role of customer satisfaction in the relationship between factors influencing customers’ loyalty towards financial services in Saudi Arabia. The data of this study was collected from both international and national Saudi banks’ customers. The collected data then has been analyzed using the SPSS. Consequently, the results showed that the “perceived quality” and “customer bank change & switching cost” can significantly affect customers’ loyalty. Furthermore, the results showed that “customers’ satisfaction” can affect costumers’ loyalty significantly, but it does not have a significant role in effecting the relationship between the factors influencing the customers’ loyalty towards financial services in Saudi Arabia. Keywords- Perceived Quality, Trust, Switching Cost, Commitment, Loyalty, Satisfaction. 1. INTRODUCTION Financial sector seems to have a lot of events and occasions, particular on the light of financial crisis, global economic as well as competition (Almansour, 2013). Managers do make appropriate financial decision in order to maintain the market leadership as well as customers’ satisfaction. However, the successful of any service provider in any organization depends on the association between the high quality and customers’ satisfaction. Customers’ satisfaction has been the subject of great interest of researchers and practitioners; it has also become very vital in business since the marketing era of the 1950s when the organizations could produce what can sell. Banks plays an important role in the financial sector, in other words, they play a critical role in the economy by providing credit to customers and providing the liquidity needed for the economy to function. Therefore, banks committed and often inherited relationships between customer and banks were becoming increasingly scarce (Lee and Feick, 2001). Several empirical studies have shown the performance of organization could be influenced by such marketing components or service quality increasing sales profit (Levesque & Mc. Dougal, 1996; Kish, 2000; Duncan & Elliot, 2002) and market share (Fisher, 2001), improving customer relations, enhance corporate image and promote customer loyalty (Newman, 2001, Caruana, 2002; Ehigie, 2006). In addition, customer satisfaction and service quality have been found to have an association to customer loyalty (Levesque & Mc. Dougall, 1996; Newman, 2001; Caruana, 2002). The banking industry in the kingdom of Saudi Arabia is growing in size, resources and capabilities. Banks that are operating in the competitive environment are trying to increase their level of improvement through offering a variety of services in order to meet their customers' expectations. The aim of this study is to investigate the relationship between factors influencing customers’ loyalty towards financial services in banking sectors in Saudi Arabia. The level of competition and complexity among the banks is relative to the number of banks operating in the same market. The aim of this study was translated into nine questions as following:  Is there a significant relationship between customer perceived quality and expectations and customers’ loyalty?  Is there a significant relationship between customer willingness and trust and customers’ loyalty?  Is there a significant relationship between customer bank change and switching cost and customers’ loyalty?  Is there a significant relationship between customer commitment and customers’ loyalty?  Is there a significant relationship between customer perceived quality and expectations and customers’ satisfaction?  Is there a significant relationship between customer willingness and trust and customers’ satisfaction?  Is there a significant relationship between customer bank change and switching cost and customers’ satisfaction?