A post-COVID model to measure brand loyalty of banking clients

  • Received November 23, 2022;
    Accepted February 25, 2023;
    Published April 21, 2023
  • Author(s)
    Dries Els
    ORCID ,
    Christo Bisschoff
    ORCID
  • DOI
    http://dx.doi.org/10.21511/bbs.18(2).2023.03
  • Article Info
    Volume 18 2023, Issue #2, pp. 24-37
  • TO CITE АНОТАЦІЯ
  • Cited by
    2 articles
  • 809 Views
  • 361 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

The study investigates the relationship between customers’ loyalty, trust and satisfaction concerning an organization’s reputation in the South African banking sector. High service levels exist in this highly competitive and price-sensitive market. Access to banking has also digitized significantly, and banks adapted their service strategies to comply with COVID-19 restrictions such as hard lockdowns and limited movements. Customers were not able to attend banks. Hence the whole personal (contact) service and loyalty scenario required aggressive reengineering. A bank’s competitiveness can be impacted significantly by service quality, price competitiveness, and product diversity. As a result, the study with the primary objective is to determine the new relationships between customer loyalty and antecedents such as service quality, customer satisfaction, customer trust, brand image, reputation, customer loyalty, and word of mouth. Data were gathered from South African customers using a 5-point Likert scale distributed via an electronic platform (Google Forms). More than 1,000 questionnaires were distributed, and 150 were completed and returned (representing a 15% response rate). The reliability is satisfactory (Cronbach alpha coefficient on all antecedents exceeded 0.775). The literature model was confirmed using confirmatory factor analysis. The analysis showed that the model possesses convergent- (r2 < Sqrt AVE) and discriminant (AVE > 0.5) validity and possesses satisfactory fit indices (CFI = .951, TL = .941, NFI = .922, RMSEA = .089, CMIN/df = 129.072/592.188 = 2.188). This indicates that the model can be operationalized in South Africa to measure post-COVID-19 bank loyalty.

view full abstract hide full abstract
    • Figure 1. Structural model
    • Table 1. Biographic information
    • Table 2. Pearson correlations between antecedents
    • Table 3. The goodness of fit indices
    • Conceptualization
      Dries Els, Christo Bisschoff
    • Project administration
      Dries Els
    • Validation
      Dries Els, Christo Bisschoff
    • Writing – original draft
      Dries Els
    • Formal Analysis
      Christo Bisschoff
    • Methodology
      Christo Bisschoff
    • Writing – review & editing
      Christo Bisschoff
Related Articles

  • Factors affecting service quality at Vietnamese retail banks

    Tran Phi HoangORCID 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: 6455 Downloads: 1372 TO CITE АНОТАЦІЯ

    Sustainable 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.

  • Influence of the dimensions of CSR activities on consumer purchase intention

    Vinod SharmaORCID Researcher ID, Jeanne PouloseORCID Researcher ID, Subhasmita MohantaORCID , Liza Elizabeth AntonyORCID doi: http://dx.doi.org/10.21511/im.14(1).2018.03
    Innovative Marketing Volume 14, 2018         Issue #1         pp. 23-32 Views: 2733 Downloads: 433 TO CITE АНОТАЦІЯ

    Over the years, the number of organizations investing in CSR activities has increased considerably. This increase is partially attributable to the intention of the organizations to give back to the society to repair and reduce the loss their intentional or unintentional actions might have caused to the environment. The government’s decision to make it mandatory for businesses to invest a small part of their net profit in social welfare activities has also helped nudge the organizations towards CSR activities. However, the question whether this investment influences customers’ intention to purchase the product in any manner remains an unresolved paradox. Limited researches have been conducted in this area to explore and establish the relationship if any between CSR and consumer purchase intention. This research focuses on the five different factors of CSR comprising of loyalty, morality, awareness, behavior and environment, which are identified from the previous literature. With the help of these factors, the authors researched and established the relationship between them and consumer purchase intention. In this descriptive research, the research questionnaire was distributed to 1500 respondents, using convenient sampling method, out of which 319 responses were finally obtained for the analysis purpose. After testing the reliability and validity of the data, the five hypotheses were tested using SEM (Structural Equation Modeling). It was found that all the five hypotheses were supported and thereby acknowledged the significant influence of CSR related activities performed by companies on the consumer purchase intention. The CSR driven morality is emerging to be the most important dimension that appears to influence the consumer purchase intentions. These finding will help decision-makers to formulate their promotion activities in such a manner that it aligns with the value system of the consumers and increase the overall consumer base.

  • The mediating role of emotional intelligence in the employees performance

    Arief Tukiman HendrawijayaORCID , Tatang Ary GumantiORCID , Sasongko , Zarah PuspitaningtyasORCID 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: 2027 Downloads: 751 TO CITE АНОТАЦІЯ

    This 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.

Download Preview
Close
Banks and Bank Systems
Banks and Bank Systems