(Luận văn) investigate the antecedents of bank loyalty

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY t to EÂ1 o0o ng hi ep w n lo TRẦN GIAO PHƯỢNG HÀ ad ju y th yi INVESTIGATE THE ANTECEDENTS OF BANK LOYALTY pl n ua al va n MASTER’S THESIS ll fu oi m at nh z In Business Administration Ology code: 60.34.05 z k jm ht vb om l.c gm Supervisor Dr Tran Ha Minh Quan an Lu n va ey t re HCMC- 04/2012 Acknowledgement t to ng This research project would not have been possible without the support of hi ep many people Firstly I wish to express my deep sincere gratitude to my supervisor, Dr Tran Ha Minh Quan for his invaluable advices and helps w n Without him, this thesis could not have been completed lo ad y th Special thanks to all instructors without whose knowledge and assistance ju this study would not have been successful I also wish to thank M.A Nguyen yi pl Thanh Trung for his great support ua al n My thanks would also go to all of my classmates, my colleagues I also va n wish to thank my friends in Vietcombank, VPBank, Eastern Asia Bank, ACB ll fu and Sacombank for their great support My thanks would also go to the m oi respondents, without them, my thesis could not have been done at nh z Last but not least, the deepest and most sincere gratitude go to my beloved z parents for not only the love they devote to me but also for the time I took from vb k therefore, dedicate this work as a gift to them all jm ht them which should have been my devotion to them in their aged time I, om l.c gm an Lu n va ey t re   Abstract t to ng hi This study aims to investigate antecedents of customer loyalty to the bank, ep related to perceived quality, bank image and customer satisfaction Based on theoretical background, scales are developed in accordance with the context of w n banking sector in Vietnam A discussion group of 10 people is to develop and lo ad adjust the scale Next, a main survey is carried out with the sample of 238 y th individual consumers to test scales and the research hypotheses ju Research results show that the scales meet the reliability and validity value, yi pl support all hypotheses In details, bank image has the most influence on ua al customer loyalty to the bank, followed by perceived quality and customer n satisfaction We know that image is more deeply engraved, make customers va n have good impression on that bank, and customers often decide based on their fu ll perception Good image is an asset to banking because image affects customer m oi perception of banks When customers have a positive image in their minds of the at nh bank, small errors made by banks are pardonable by customers Especially, in z the economic crisis, the information about bank with high achievements, z diversified products / services and good board of management creates a vb jm ht tremendous confidence for the customers This competitive advantage is k considered as an effective tool in building long term relationship with l.c gm customers Research on bank loyalty enriches the theory of service loyalty Banking om services as well as consumer goods are facing fierce competition This study an Lu helps bank managers capture the drivers of bank loyalty That creates additional incentives for managers to develop and implement more effective marketing   ey t re satisfaction n Keyword: banking, bank loyalty, perceived quality, image, customer va programs, enhancing customer loyalty to the bank Contents t to Acknowledgement ng hi Abstract ep Contents w List of Tables n List of Figures lo ad Chapter 1: INTRODUCTION y th 1.1 Introduction ju yi 1.2 Research background pl 1.3 Research question al n ua 1.4 Scope and methodology of the study 10 va 1.4.1 Scope of the study 10 n 1.4.2 Research method 11 fu ll 1.5 Structure of the study 11 m oi Chapter 2: LITERATURE REVIEW 13 nh at 2.1 Introduction 13 z 2.2 Customer loyalty 13 z ht vb 2.3 Relationship between perceived quality and loyalty 14 jm 2.4 Relationship between image and loyalty 15 k 2.5 Relationship between customer satisfaction and loyalty 16 gm 2.6 Research model and hypotheses 17 l.c 2.7 Conclusion 18 om Chapter 3: METHODOLOGY 19 an Lu 3.1 Introduction 19 3.4.2 Scale to measure bank image 23   ey 3.4.1 Scale to measure perceived quality 22 t re 3.4 Item generation 22 n 3.3 Research design 20 va 3.2 Business research 19 3.4.3 Scale to measure customer satisfaction 23 t to 3.4.4 Scale to measure bank loyalty 24 ng 3.5 Preliminary study 24 hi ep 3.6 Main study 27 3.6.1 Research sample 27 w n 3.6.2 Data analysis techniques 28 lo 3.7 Conclusion 29 ad y th Chapter 4: DATA ANLYSIS AND FINDINGS 30 ju 4.1 Introduction 30 yi pl 4.2 Descriptions of sample 30 ua al 4.3 Scale assessment 32 n 4.3.1 Reliability testing 32 va n 4.3.2 Exploratory factor analysis 35 ll fu 4.4 Testing research model and hypotheses 37 oi m 4.4.1 Testing correlations between all constructs 37 at nh 4.4.2 Testing research model and hypotheses 38 4.5 Conclusion 41 z z Chapter 5: CONCLUSIONS AND IMPLICATIONS 42 vb jm ht 5.1 Introduction 42 5.2 Conclusions of the study 42 k gm 5.3 Implications of the study 43 l.c 5.3.1 Theoretical implications 43 om 5.3.2 Practical implications 43 an Lu 5.4 Limitations and recommendations for further research 45 List of References 47   ey Appendix 4- Reliability Analysis- Cronbach alpha 59 t re Appendix 3- Sample characteristics 56 n Appendix 2- Observed variables 55 va Appendix 1- Questionnaire (Vietnamese version) 52 Appendix 5- Exploratory Factor Analysis 64 t to Appendix 6- Regression Result 68 ng hi ep w n lo ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re   List of Tables t to ng hi ep 3.1 Measures of perceived quality 22 3.2 Measures of bank image 23 w n 3.3 Measures of customer satisfaction 24 lo ad 3.4 Measures of bank loyalty 24 ju y th 3.5 The final questionnaire 26 3.6 Research sample 27 yi pl 4.1 Sample characteristics 31 ua al 4.2a- Reliability of measurement items (1st time) 33 n 4.2b- Reliability of measurement items (2nd time) 34 va n 4.3 EFA result for construct measurement scales 36 fu ll 4.4 Total Variance Explained 36 m oi 4.5 EFA result for Bank loyalty 37 at nh 4.6 Correlation matrix 38 z 4.7a- Model summary 38 z 4.7b- Anovab 39 vb jm ht 4.7c- Coefficientsa 39 k 4.7d- Collinearity Diagnostics 40 gm 4.8 Summary of hypotheses testing results 41 om l.c an Lu n va ey t re   List of Figures t to ng hi ep 1.1 Outline of chapter w 1.2 Structure of the study 12 n lo 2.1 Outline of chapter 13 ad 2.2 Proposed research model 17 y th ju 3.1 Outline of chapter 19 yi 3.2 Research process 21 pl ua al 4.1 Outline of chapter 30 5.1 Outline of chapter 42 n n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re   Chapter 1: INTRODUCTION t to ng 1.1 Introduction hi ep This chapter portrays general introduction for the current study with which research problem, research objectives and research questions are provided as the w n rationale for this study An introduction to the methodology and the scope of the lo ad study are also addressed in this chapter At the end of the chapter, the structure y th of this study is provided The Outline of this chapter is shown in figure 1.1 ju Figure 1.1 Outline of chapter yi pl Introduction n ua al 1.1 va Research background n 1.2 ll fu Research question oi m 1.3 at nh Scope and Methodology 1.5 Structure of the study z 1.4 z k jm ht vb gm 1.2 Research background l.c During the past decade, the financial services sector has undergone drastic om changes, resulting in a market place which is characterized by intense an Lu competition, little growth in primary demand and increased deregulation In the   ey volume of business with the organization Several strategies have been t re (Levesque and McDougall, 1996) This loyalty leads increasing in his/her n between a customer and his or her bank is becoming increasingly scarce va new market place, the occurrence of committed and often inherited relationships attempted to retain customers In order to increase customer loyalty, many banks t to have introduced innovative products and services (Meidan, 1996) However, as ng such innovations are frequently followed by similar charges; it has been argued hi ep that a more viable approach for banks is to focus on less tangible and less easy- to-imitate determinants of customer loyalty such as customer evaluative w judgements like service quality and satisfaction (Worcester, 1997; Yavas and n lo Shemwell, 1996) Surprisingly, however, while there has been a large number of ad y th studies that focused on service quality and satisfaction issues (Lewis, 1993), ju research on the relationship between satisfaction, perceived quality and loyalty yi pl in banking sector has remained limited Yet, in the present environment of ua al increased competition with rapid market entry of new service concepts and n formats, the challenge of increasing loyalty also presents a challenge of a more va n in depth understanding of the complex relationship between aforementioned ll fu types of customer evaluative judgements and loyalty oi m In addition, there is some evidence that loyalty may also be determined by at nh image (Mazursky and Jacoby, 1986; Murphy, 1996; Osman, 1993) Again, it has remained unclear whether there is a direct relationship between image and z z loyalty, between perceived quality and loyalty or between customer satisfaction vb jm ht and loyalty In this article we address this issue We propose a model that describes the relationship between perceived quality, satisfaction and bank k gm image with customer loyalty in banking sector Therefore, the objective of this l.c study is to explore the relationship as well as the influence of determinants om mentioned above to customer loyalty of some joint stock commercial banks an Lu representative in Hochiminh City The researcher also wants to develop measurable scales of these dimensions built up customer loyalty to the bank n t re sustainable development ey 1.3 Research question Recent years have seen a significant and rapid growth of the banking   va From that, bank’s managers can give out suitable strategies to make a