Increasing customer loyalty through customer engagement in the retail banking industry
Purpose – This study aims to determine the main antecedents of customer engagement (market orientation, satisfaction, emotions and self-brand connection) and the relationship between customer engagement and customer loyalty in the retail-banking context. Design/methodology/approach – A theoretical m...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Emerald Publishing
2019-12-01
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| Series: | Spanish Journal of Marketing-ESIC |
| Subjects: | |
| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/SJME-07-2019-0042/full/pdf?title=increasing-customer-loyalty-through-customer-engagement-in-the-retail-banking-industry |
| _version_ | 1828105515993923584 |
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| author | Diego Monferrer Miguel Angel Moliner Marta Estrada |
| author_facet | Diego Monferrer Miguel Angel Moliner Marta Estrada |
| author_sort | Diego Monferrer |
| collection | DOAJ |
| description | Purpose – This study aims to determine the main antecedents of customer engagement (market orientation, satisfaction, emotions and self-brand connection) and the relationship between customer engagement and customer loyalty in the retail-banking context. Design/methodology/approach – A theoretical model of effects is tested using dyadic methodology, based on 225 dyads (bank branch manager–average of five branch customers). The authors use structural equation modelling (EQS 6.1) to test the relationships. Findings – The results reveal a strong relationship between customer engagement and customer loyalty. Satisfaction is the main antecedent of customer engagement. Self-brand connection and emotions during the service also have a significant influence. Finally, branch market orientation has a positive influence on satisfaction and emotions. Research limitations/implications – The first concerns the transversal data used. Geographical context is the second limitation. Third, the study sample only included customers with experience of the financial services of a specific bank (online customers are not included). Finally, the dyads are based on the opinion of the branch manager, on one hand, and an average of five customers per branch, on the other. Practical implications – The combination of the branding strategy at the corporate level and the relationship marketing strategy at branch office level creates a situation in which customer engagement and customer loyalty can thrive. The communication campaigns designed to promote the brand image and associate brand values with the personality of the banks’ current and potential customers help to create an emotional bond that represents a switching cost for the customer. The moments of truth in branch offices are crucial aspects in the retail bank strategy. Originality/value – First, from the conceptual perspective, it establishes a direct relationship between customer engagement and customer loyalty. Second, it empirically tested Pansari and Kumar’s (2017) customer engagement framework, which establishes customer satisfaction and customer emotions as the antecedents of customer engagement. Third, the study took an innovative step in establishing two levels of customer emotions in the retail bank context: emotions generated by corporate branding and emotions that arise during the experience of purchase and consuming. Fourth, the study shows that the market orientation adopted not at the macro corporate level but at the individual branch level is crucial to the generation of positive relational outcomes in the service the customer receives. The fifth contribution is related to the fact that the research streams associated with market orientation and relationship quality have traditionally been studied in isolation. |
| first_indexed | 2024-04-11T10:04:30Z |
| format | Article |
| id | doaj.art-ea5399884ec64cb79cb0db6164e67f62 |
| institution | Directory Open Access Journal |
| issn | 2444-9695 2444-9709 |
| language | English |
| last_indexed | 2024-04-11T10:04:30Z |
| publishDate | 2019-12-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | Spanish Journal of Marketing-ESIC |
| spelling | doaj.art-ea5399884ec64cb79cb0db6164e67f622022-12-22T04:30:17ZengEmerald PublishingSpanish Journal of Marketing-ESIC2444-96952444-97092019-12-0123346148410.1108/SJME-07-2019-0042635742Increasing customer loyalty through customer engagement in the retail banking industryDiego Monferrer0Miguel Angel Moliner1Marta Estrada2Department of Business and Marketing, Jaume I University, Castellón, SpainDepartment of Business and Marketing, Jaume I University, Castellón, SpainDepartment of Business and Marketing, Jaume I University, Castellón, SpainPurpose – This study aims to determine the main antecedents of customer engagement (market orientation, satisfaction, emotions and self-brand connection) and the relationship between customer engagement and customer loyalty in the retail-banking context. Design/methodology/approach – A theoretical model of effects is tested using dyadic methodology, based on 225 dyads (bank branch manager–average of five branch customers). The authors use structural equation modelling (EQS 6.1) to test the relationships. Findings – The results reveal a strong relationship between customer engagement and customer loyalty. Satisfaction is the main antecedent of customer engagement. Self-brand connection and emotions during the service also have a significant influence. Finally, branch market orientation has a positive influence on satisfaction and emotions. Research limitations/implications – The first concerns the transversal data used. Geographical context is the second limitation. Third, the study sample only included customers with experience of the financial services of a specific bank (online customers are not included). Finally, the dyads are based on the opinion of the branch manager, on one hand, and an average of five customers per branch, on the other. Practical implications – The combination of the branding strategy at the corporate level and the relationship marketing strategy at branch office level creates a situation in which customer engagement and customer loyalty can thrive. The communication campaigns designed to promote the brand image and associate brand values with the personality of the banks’ current and potential customers help to create an emotional bond that represents a switching cost for the customer. The moments of truth in branch offices are crucial aspects in the retail bank strategy. Originality/value – First, from the conceptual perspective, it establishes a direct relationship between customer engagement and customer loyalty. Second, it empirically tested Pansari and Kumar’s (2017) customer engagement framework, which establishes customer satisfaction and customer emotions as the antecedents of customer engagement. Third, the study took an innovative step in establishing two levels of customer emotions in the retail bank context: emotions generated by corporate branding and emotions that arise during the experience of purchase and consuming. Fourth, the study shows that the market orientation adopted not at the macro corporate level but at the individual branch level is crucial to the generation of positive relational outcomes in the service the customer receives. The fifth contribution is related to the fact that the research streams associated with market orientation and relationship quality have traditionally been studied in isolation.https://www.emerald.com/insight/content/doi/10.1108/SJME-07-2019-0042/full/pdf?title=increasing-customer-loyalty-through-customer-engagement-in-the-retail-banking-industrycustomer loyaltyemotionsmarket orientationsatisfactioncustomer engagementretail bank industry |
| spellingShingle | Diego Monferrer Miguel Angel Moliner Marta Estrada Increasing customer loyalty through customer engagement in the retail banking industry Spanish Journal of Marketing-ESIC customer loyalty emotions market orientation satisfaction customer engagement retail bank industry |
| title | Increasing customer loyalty through customer engagement in the retail banking industry |
| title_full | Increasing customer loyalty through customer engagement in the retail banking industry |
| title_fullStr | Increasing customer loyalty through customer engagement in the retail banking industry |
| title_full_unstemmed | Increasing customer loyalty through customer engagement in the retail banking industry |
| title_short | Increasing customer loyalty through customer engagement in the retail banking industry |
| title_sort | increasing customer loyalty through customer engagement in the retail banking industry |
| topic | customer loyalty emotions market orientation satisfaction customer engagement retail bank industry |
| url | https://www.emerald.com/insight/content/doi/10.1108/SJME-07-2019-0042/full/pdf?title=increasing-customer-loyalty-through-customer-engagement-in-the-retail-banking-industry |
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