A post-COVID model to measure brand loyalty of banking clients
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,...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2023-04-01
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| Series: | Banks and Bank Systems |
| Subjects: | |
| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18065/BBS_2023_02_Els.pdf |
| _version_ | 1797816627956285440 |
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| author | Dries Els Christo Bisschoff |
| author_facet | Dries Els Christo Bisschoff |
| author_sort | Dries Els |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-03-13T08:40:27Z |
| format | Article |
| id | doaj.art-d909fe90a51b42b0a7c46dea8c1c0b90 |
| institution | Directory Open Access Journal |
| issn | 1816-7403 1991-7074 |
| language | English |
| last_indexed | 2024-03-13T08:40:27Z |
| publishDate | 2023-04-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Banks and Bank Systems |
| spelling | doaj.art-d909fe90a51b42b0a7c46dea8c1c0b902023-05-30T12:47:28ZengLLC "CPC "Business Perspectives"Banks and Bank Systems1816-74031991-70742023-04-01182243710.21511/bbs.18(2).2023.0318065A post-COVID model to measure brand loyalty of banking clientsDries Els0https://orcid.org/0000-0001-5672-3214Christo Bisschoff1https://orcid.org/0000-0001-6845-7355MBA, NWU Business School, North-West UniversityPh.D., Professor in Marketing, Economic and Management Sciences Faculty NWU Business School, North-West UniversityThe 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.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18065/BBS_2023_02_Els.pdfbankingbrandcustomerloyaltypost-Covid-19quality |
| spellingShingle | Dries Els Christo Bisschoff A post-COVID model to measure brand loyalty of banking clients Banks and Bank Systems banking brand customer loyalty post-Covid-19 quality |
| title | A post-COVID model to measure brand loyalty of banking clients |
| title_full | A post-COVID model to measure brand loyalty of banking clients |
| title_fullStr | A post-COVID model to measure brand loyalty of banking clients |
| title_full_unstemmed | A post-COVID model to measure brand loyalty of banking clients |
| title_short | A post-COVID model to measure brand loyalty of banking clients |
| title_sort | post covid model to measure brand loyalty of banking clients |
| topic | banking brand customer loyalty post-Covid-19 quality |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18065/BBS_2023_02_Els.pdf |
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