INTRODUCTION
Introduction
This chapter serves as an introduction to the current study, detailing the research problem, objectives, and questions that underpin the rationale for the investigation It also outlines the methodology and scope of the study, culminating in a presentation of the study's structure An overview of this chapter is illustrated in Figure 1.1.
Structure of the study
Over the past decade, the financial services sector has experienced significant transformations, marked by heightened competition, stagnant primary demand, and greater deregulation As a result, the traditional bonds between customers and their banks are becoming less common, diminishing customer loyalty that typically drives increased business volume.
This article investigates the antecedents of bank loyalty, highlighting the importance of customer retention strategies To enhance loyalty, many banks have introduced innovative products and services; however, these innovations are often quickly replicated by competitors A more effective approach may involve focusing on intangible factors, such as service quality and customer satisfaction, which are harder to imitate Despite numerous studies on service quality and satisfaction, research specifically examining the connection between these factors and loyalty in the banking sector remains limited In today's competitive landscape, characterized by the rapid introduction of new service concepts, understanding the intricate relationship between customer evaluative judgments and loyalty is crucial for banks seeking to improve customer retention.
This article explores the complex relationship between perceived quality, customer satisfaction, and bank image in relation to customer loyalty within the banking sector Drawing on evidence from previous studies, it aims to clarify the connections between these factors and their impact on loyalty towards joint stock commercial banks in Ho Chi Minh City The study also seeks to develop measurable scales for these dimensions to enhance understanding of how they contribute to customer loyalty in the banking industry.
From that, bank’s managers can give out suitable strategies to make a sustainable development
In recent years, the banking sector has experienced substantial and swift growth, driven by advancements in technology and changing consumer demands This rapid expansion has led to the emergence of innovative financial products and services, enhancing customer experience and accessibility As a result, banks are increasingly focusing on digital transformation to stay competitive in the evolving market landscape.
This article explores the antecedents of bank loyalty within the context of the rapidly evolving Vietnamese banking industry, particularly focusing on the growth of commercial joint-stock banks As customers gain access to a wider range of banking options, it becomes crucial for banks to develop competitive advantages through effective strategies To formulate these strategies, banks must prioritize understanding the factors that contribute to customer loyalty in their services.
As above discussed, the current research intends to address three main issues:
Q1: Will perceived quality have a direct positive effect on loyalty?
Q2: Will bank image have a direct positive effect on loyalty?
Q3: Will customer satisfaction have a direct positive effect on loyalty?
1.4 Scope and methodology of the study 1.4.1 Scope of the study
Vietnam's banking sector comprises four main types of banks: state-owned banks, which include both commercial and specialized banks like the social policy bank; fully foreign-invested banks; joint venture banks; and Vietnamese commercial joint stock banks.
This research focuses specifically on Vietnamese commercial joint stock banks, with the survey conducted in Ho Chi Minh City The emphasis on this type of bank is due to the ongoing globalization and economic integration, which is leading to the equitization of state-owned commercial banks, making them joint stock entities in the near future Foreign banks are excluded from this study, as they are fewer in number compared to commercial joint stock banks, and obtaining customer information from them is often challenging due to confidentiality concerns.
State-owned banks designated for specific purposes are excluded from consideration due to their unique characteristics, such as government-controlled credit allocation for certain social objectives.
This article investigates the antecedents of bank loyalty, focusing on the factors that influence customers' commitment to their banking institutions Understanding these antecedents is crucial for banks aiming to enhance customer retention and satisfaction By analyzing various elements such as service quality, trust, and customer experience, the study aims to provide insights that can help banks develop effective strategies to foster loyalty among their clients Ultimately, the findings highlight the importance of building strong relationships with customers to ensure long-term loyalty in a competitive banking environment.
This article explores qualitative and quantitative research aimed at identifying concepts used in measuring bank loyalty from the perspective of individual customers of joint stock commercial banks in Ho Chi Minh City The qualitative phase involves focus group discussions to create measurable scales for the factors influencing bank loyalty and to establish a list of banks for subsequent surveys.
Self-administered questionnaire is the main tool to collect quantitative data
The study utilized a questionnaire comprising 25 statements that represent both independent and dependent variables, measured using a 5-point Likert scale A combination of quota and convenience sampling methods was employed for participant selection After four weeks of data collection, a total of 238 qualified questionnaires were processed and analyzed.
The study employs the Cronbach alpha reliability coefficient and exploratory factor analysis (EFA) to refine measurable items, utilizing SPSS-16 for data processing Linear regression analysis is conducted to examine the hypotheses regarding the relationships between perceived quality, brand image, customer satisfaction, and bank loyalty.
This research is structured into 5 chapters Chapter 1: Introduction introduces the research including research background, research questions, a brief research methodology overview and structure of the study Chapter 2:
This article presents a comprehensive literature review on customer loyalty, exploring its connections with perceived quality, bank image, and customer satisfaction Chapter 3 outlines the research methodology, including the design, procedures, and rationale for data analysis, while also detailing the questionnaire and survey development Chapter 4 focuses on the results of the study.
The research results encompass the sampling and processing of data, focusing on the analysis of the latest thesis downloads This includes a comprehensive examination of master's theses, ensuring accessibility and relevance for users seeking updated academic resources.
This study investigates the antecedents of bank loyalty, focusing on factors that influence customers' commitment to their banking institutions Understanding these antecedents is crucial for banks aiming to enhance customer retention and satisfaction The research highlights the significance of trust, service quality, and customer engagement as key drivers of loyalty in the banking sector By identifying these elements, banks can develop strategies to foster stronger relationships with their clients, ultimately leading to increased loyalty and business success.
LITERATURE REVIEW
Introduction
This chapter reviews pertinent theories from the literature to establish a research model of bank loyalty within the context of Vietnam's banking services The objective is to generate testable hypotheses that will enhance our understanding of customer loyalty in this sector.
Customer loyalty
Customer loyalty is a crucial competitive advantage, driving repeat business, increased market share, and higher profits Defined in the literature as both an attitude and behavior, loyalty plays a vital role in a company's long-term success.
This article investigates the antecedents of bank loyalty, defining loyalty as the desire to maintain a relationship with a financial institution However, intentions may not accurately predict actual behavior, as highlighted by Mittal and Kamakura (2001) While loyalty is often viewed through a behavioral lens as repeat patronage (Reibstein, 2002), it does not uncover the underlying motivations Factors influencing behavior may include habit, third-party influence, convenience, or chance (Oliver, 1999) Most research has concentrated on product or brand loyalty, leaving service loyalty, particularly in banking, less explored (Gremler and Brown, 2001) Studies frequently indicate a strong positive correlation between satisfaction, quality, and product loyalty, with perceived service quality and satisfaction identified as crucial antecedents of loyalty in both banking and other service sectors (Dick and Basu, 1994; Lewis, 1993).
This project explores customer loyalty through both attitudinal and behavioral lenses, emphasizing that loyal customers not only consistently use a bank's services but also consider it for future needs Such loyalty significantly benefits the company, as loyal customers are willing to pay premium prices, incur lower service costs, and attract new clientele For instance, a customer loyal to Bank A is likely to choose its services over Bank B, despite the latter offering lower fees and superior service.
Relationship between image and loyalty
Figure 1.2 Structure of the study
Chapter 4 Data analysis and Findings
Chapter 5 Conclusion and implications tot nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
This article investigates the antecedents of bank loyalty, focusing on the factors that influence customers' commitment to their financial institutions Understanding these antecedents is crucial for banks aiming to enhance customer retention and satisfaction By analyzing various elements such as service quality, trust, and customer experience, the research highlights the key drivers that foster loyalty among bank clients Ultimately, the findings provide valuable insights for banking professionals seeking to strengthen their relationships with customers and improve overall loyalty metrics.
This chapter reviews relevant theories in the literature to propose a research model of bank loyalty and generate hypotheses for testing within the context of Vietnam’s banking services.
Customer loyalty is a crucial competitive advantage that drives repeat business, increases market share, and boosts profitability Defined in the literature as both an attitude and a behavior, loyalty plays a vital role in a company's long-term success.
This article investigates the antecedents of bank loyalty, defining loyalty as the desire to maintain a relationship with a financial institution However, intentions may not accurately predict behavior, as noted by Mittal and Kamakura (2001), since they do not always translate into actions The behavioral perspective views loyalty as repeat patronage (Reibstein, 2002) but fails to uncover the underlying motivations Loyalty can sometimes be influenced by factors such as habit, convenience, or external influences (Dick and Basu, 1994; Oliver, 1999) While much research has centered on product or brand loyalty, the loyalty of service organizations, particularly in banking, remains underexplored (Gremler and Brown, 2001) Studies have shown a strong correlation between satisfaction, perceived service quality, and loyalty in both banking and other service sectors (Dick and Basu, 1994; Lewis, 1993).
This project explores customer loyalty through both attitudinal and behavioral lenses, highlighting that loyal customers not only consistently use a bank's services but also consider it for future needs Such loyalty significantly benefits the company, as these customers are willing to pay premium prices, reduce operational costs, and attract new clientele For instance, a loyal customer of Bank A may choose its services over Bank B, despite the latter offering lower fees and superior service.
2.3 Relationship between perceived quality and loyalty
Perceived quality refers to a consumer's assessment of how well a product or service meets their expectations While it may not directly reflect the actual quality of the product, it is significantly influenced by the brand's image in the consumer's mind, their personal experiences with various products, and the opinions of evaluation groups and renowned experts.
Perceived quality refers to the subjective evaluation of a product or service by consumers, which may differ from its actual quality This assessment plays a crucial role in influencing consumer behavior and purchasing decisions Understanding the distinction between perceived and real quality is essential for businesses aiming to enhance customer satisfaction and loyalty.
This article investigates the antecedents of bank loyalty, focusing on the relationship between perceived quality and brand loyalty According to Zeithaml (1998), perceived quality reflects a customer's assessment of a service's overall excellence or superiority This perception not only provides value to customers by justifying their purchasing decisions but also helps differentiate the brand from its competitors (Kayaman & Arasli, 2007) Ultimately, a customer's perception of quality is closely linked to their loyalty towards the bank.
Research indicates that perceived service quality significantly influences customer loyalty Wong and Sohal (2003) demonstrated a positive correlation between perceived quality and customer loyalty in the retail sector Similarly, studies in the banking industry by Bloemer (1998) and Ehigie (2006) also revealed a strong link between perceived quality and customer loyalty.
2.4 Relationship between corporate image and loyalty
The concept of image is intricate, encompassing elements that extend beyond individual perception Corporate image, as defined by Worcester (1997), is the cumulative result of people's experiences, impressions, beliefs, feelings, and knowledge about a company This internalization of diverse elements highlights that image is intangible and uniquely perceived by each individual, leading to distinct perceptions among different people (Gray and Smeltzer, 1985).
Corporate image refers to the mental association a customer forms with a corporation, influencing their perception and feelings about it (Keller and Aaker, 1992) This image serves as a crucial differentiator in a competitive market (Slongo and Vieira, 2007) and is shaped by the cumulative experiences of purchasing and using the company's products and services over time (Weiwei, 2007) A positive corporate image fosters customer loyalty, encouraging repeat purchases in the future.
This article explores the key factors influencing bank loyalty It delves into the antecedents that contribute to customers' commitment to their banks, highlighting the importance of trust, service quality, and customer satisfaction Understanding these elements is crucial for financial institutions aiming to enhance customer retention and build long-term relationships By investigating the drivers of bank loyalty, the research provides valuable insights for improving banking services and fostering customer allegiance.
Loyalty is significantly influenced by a brand's image, as highlighted by Mazursky and Jacoby (1986) and Osman (1993) Research indicates that, alongside service quality and customer satisfaction, a strong brand image plays a crucial role in driving customer patronage.
Andreassen and Lindestad (1998) have concluded that a positive image help to set up a higher degree of customer loyalty.
METHODOLOGY
Introduction
This chapter offers a comprehensive overview of business research, detailing the research methodology utilized for developing and evaluating measurement scales It also outlines the statistical techniques applied for data analysis, as well as the testing of research hypotheses and the research model An illustrative chapter outline is presented in Figure 3.1.
Conclusion
Business research is a systematic inquiry aimed at providing information to address managerial problems It can be classified based on various criteria, including data characteristics, data sources, research purposes, and study frequency.
This article explores the key factors that influence bank loyalty It delves into the antecedents that contribute to customers' commitment to their banks, highlighting the importance of trust, service quality, and customer satisfaction By understanding these elements, financial institutions can enhance their relationships with clients and foster long-term loyalty The investigation aims to provide insights that can help banks develop strategies to retain customers and improve overall service delivery.
Based on the purpose of research, researchers often use one of the following three types
Exploratory research serves as the foundational level of investigation, utilized by researchers to enhance their understanding of a problem or when they are unsure about the applicable theories that can elucidate the nature of certain phenomena.
Descriptive studies aim to create a precise profile of individuals, events, or situations, as noted by Robson (1993) Often serving as an extension of exploratory research, these studies require a clear understanding of the characteristics to be examined before data collection begins.
Causal study: In this type of research, the emphasis is on studying a specific situation or a problem in order to explain the relationships between variables
Basing on the characteristics of data needed and research purpose, researchers can choose either qualitative or quantitative approach or a combination of these two types
Data can be acquired via a variety of strategies such as experiment, survey, case study, grounded theory or action research
The research design outlined in Figure 3.2 serves to address the theories and hypotheses, guiding the subsequent steps of the study This study utilizes a descriptive method to effectively analyze the data.
Data for this study was collected using a survey technique This technique
A reliable method for assessing population information, particularly when secondary data is unavailable, is highlighted by Zikmund (1997), as cited in Quan (2006), emphasizing the importance of quick, efficient, and accurate evaluations in research.
This article investigates the antecedents of bank loyalty, focusing on the factors that influence customers' commitment to their financial institutions Understanding these antecedents is crucial for banks aiming to enhance customer retention and satisfaction By analyzing various elements such as service quality, trust, and emotional connection, the research highlights how these factors contribute to building long-term loyalty among bank customers This study offers valuable insights for banking professionals seeking to improve their strategies and foster stronger relationships with clients.
The final draft of questionnaire
The first draft of questionnaire
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