Customer loyalty and trust in South African retail banking
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Author(s)Marko van DeventerLink to ORCID Index: https://orcid.org/0000-0002-0000-4699
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Ephrem Habtemichael ReddaLink to ORCID Index: https://orcid.org/0000-0002-0233-1968
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DOIhttp://dx.doi.org/10.21511/im.19(2).2023.17
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Article InfoVolume 19 2023, Issue #2, pp. 211-222
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- 557 Views
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269 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Customer loyalty and trust are key elements for the success of retail banking. For this reason, it is crucial to investigate the predictors of these elements. This study aims to model service quality, customer satisfaction, and commitment influencing customer loyalty and trust in South African retail banking. The target population is a growing banking customer segment – Generation Y. A sample of 271 Generation Y customers participated in the survey. Their responses were analyzed using AMOS, whereby a structural equation model was developed. Although the structural model suggests that service quality (β = 0.097; p = 0.175) is an insignificant predictor of customer loyalty in retail banking, the influence remains positive. Moreover, the model infers that customer satisfaction (β = 0.793; p = 0.001) predicts customer loyalty in retail banking and that customer satisfaction (β = 0.715; p = 0.001) and commitment (β = 0.257; p = 0.001) influence trust in retail banking. All the model fit indices (NFI = 0.95; RFI = 0.92; IFI = 0.97; TLI = 0.96; CFI = 0.97; RMSEA = 0.06; SRMR = 0.03) infer that the model is reliable, valid, and ultimately good fitting measurement tool of customer loyalty and trust in retail banking. The results provide insights into the most critical factors in building customer loyalty and trust among Generation Y customers in South African retail banking. Moreover, they can help to develop marketing and customer service strategies to improve these outcomes.
- Keywords
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JEL Classification (Paper profile tab)M30, M31, M39
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References51
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Tables7
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Figures1
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- Figure 1. Predictors of retail banking loyalty and trust
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- Table 1. Demographic data
- Table 2. Principal components analysis
- Table 3. Measurement model reliability and validity
- Table 4. Measurement model estimates and model fit
- Table 5. SPSS output
- Table 6. Structural model paths
- Table 7. Structural model fit
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Factors affecting service quality at Vietnamese retail banks
Tran Phi Hoang
doi: http://dx.doi.org/10.21511/bbs.13(2).2018.04
Banks and Bank Systems Volume 13, 2018 Issue #2 pp. 39-48 Views: 6411 Downloads: 1352 TO CITE АНОТАЦІЯSustainable growth and development can be the most important lesson that banks have learned in recent decades. Banks would gain many benefits, win the competition and develop sustainably if there have been more and more loyal customers. Customer satisfaction will help build customer loyalty. In order to have loyal customers, service quality must be good. Quality customer service of the bank is to ensure customer satisfaction and take their needs into consideration to improve service quality. High customer service quality will generate value not only to meet customer needs but also the expectations of customers and make banks more prominent than their competitors. This study identifies factors that affect customer satisfaction with the service quality at Vietnamese retail banks. The results are obtained by qualitative and quantitative method. The research model with a questionnaire consisting of 22 variables, 5 scales for a survey of 554 customers, is identified and developed through interviews with experts and group discussions. The findings show that customer satisfaction with the service quality at retail banks is influenced by “reliability”, “responsiveness”, “empathy”, “security”, and “tangibles”. Based on the findings, solutions for improving service quality are proposed for Vietnamese retail banks.
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The mediating role of emotional intelligence in the employees performance
Arief Tukiman Hendrawijaya ,
Tatang Ary Gumanti ,
Sasongko ,
Zarah Puspitaningtyas
doi: http://dx.doi.org/10.21511/ppm.16(1).2018.14
Problems and Perspectives in Management Volume 16, 2018 Issue #1 pp. 145-154 Views: 2019 Downloads: 749 TO CITE АНОТАЦІЯThis study investigates the mediating effect of emotional intelligence on the relationship between motivation, compensation, satisfaction, work climate and employees’ performance. The sample consists of 96 field officials who were the government employees specializing in coping with the eradication of Dengue Hemorrhagic Fever (DHF) in the district of Jember, Indonesia. Results using path analysis reveal that all examined variables positively and significantly affect employees’ performance. The study finds that emotional intelligence mediates the relationship of work motivation, compensation, work satisfaction, and work climate with employees’ performance.
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The role of filial piety in career interest alignment, identity alignment, and affective commitment: Evidence from Indonesia
Sakti Hendra Pramudya 
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Jhanghiz Syahrivar ,
Chairy Chairy
doi: http://dx.doi.org/10.21511/ppm.20(1).2022.35
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Acknowledgment
The publication of this study is supported by Indonesia International Institute for Life Sciences (i3L) LPPM fund.
