Preview

Factors Affecting Customer Loyalty on Banking Service: a Case of Hong Kong Shanghai Bank Commercial in Ho Chi Minh City, Vietnam

Powerful Essays
Open Document
Open Document
5046 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Factors Affecting Customer Loyalty on Banking Service: a Case of Hong Kong Shanghai Bank Commercial in Ho Chi Minh City, Vietnam
Factors Affecting Customer Loyalty on Banking Service: A case of Hong Kong Shanghai Bank Commercial in Ho Chi Minh City, Vietnam

• Dec 22, 2011 • 0 • 263
[pic]

[pic][pic]FACTORS AFFECTING CUSTOMER LOYALTY ON BANKING SERVICE: A CASE OF HONG KONG SHANGHAI BANK COMMERCIAL IN HO MINH CHI CITY, VIETNAM

Related Articles
Luxury Travel Vietnam 's Tour Featured in Indonesia Travel Magazine
Corporate globalization and human rights abuses in the sweatshops of pakistan, indonesia and vietnam
M1 Carbine
Communications In Iran

Bùi Thanh Phong

Graduate School of Business, Assumption University

ABTRACT

This study examines the relationship between selected factors (brand image, friendship, perceived service satisfaction, perceived core service quality, social regard and social comfort) and customer loyalty of HSBC in Ho Chi Minh City Vietnam. The researcher surveyed on 400 respondents who had experience to use HSBC banking services. The sampling procedure used judgment sampling and convenience sampling. The researcher used the Pearson Correlation analysis tool on this research. Descriptive statistic was used to provide the mean and percentage of demographic characteristic and other variables of study. Result indicated that brand image, friendship and perceived service satisfaction does play a mediating role in the effect of customer loyalty in banking service. The effects of a number of demographic indicators on customer loyalty are also reported.

INTRODUCTION

Loyalty factor is considered as key value of marketing strategy in the banking service and others (Kotler, 2004). It also helps bank to gain the profit and reduce marketing cost. In previous times, many banking services are aware of understand brand image, service quality and customer satisfaction which are accepted as a key determinant of customer loyalty (Payne, 1993). The customers are hard to attract and difficult to retain because it is not relatively easy for customers to
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Td Canada Trust
    • 858 Words
    • 4 Pages

    Td Canada Trust

    To achieve the new branding goal, the bank’s integration and marketing teams developed the customer satisfaction index (CSI) system, aiming to measure brand experience effectively and accurately. However, the CSI system alone couldn’t clearly prove the merits of the “comfortable banking” brand positioning. To solve this problem, Chris Armstrong initiated the “linkage analysis” study to determine which key service behaviors were linked to customer…

    • 858 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    The Role Of Impeachment In Congress
    • 78 Words
    • 1 Page

    The Role Of Impeachment In Congress

    It makes sense that Congress was hesitant about impeaching the president. Impeachment was a new process. Actually, some could consider impeachment to still be a new process in the present day because no president has been fully impeached yet. However, even though impeachment could still be seen as a new process, the checks and balances of present day are more well development. I also hope that if this situation happened in present day, citizens would take a…

    • 78 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Best Essays

    Customer Satisfaction Analysis on Supershuttle Taxi Service, New York
    • 2100 Words
    • 9 Pages

    Customer Satisfaction Analysis on Supershuttle Taxi Service, New York

    1. Introduction – importance of customer loyalty to a company Customer loyalty is an important thing to be considered by every organization because it can affect the performance of a company, directly or indirectly, and within short-term as well as long-term period. According to Castledine (2011), loyal customers generate more profits and it is also six times cheaper to retain an existing customer rather than winning a new one. Customer loyalty can be obtained by delivering value that creates customer satisfaction. Value is closely related with the ratio between cost and benefit to the customer (Castledine, 2011). Customer satisfaction is created when their experience or perceived performance meets their expectations (Castledine, 2011). A company should strive not only to achieve customer satisfaction one at a time, but also try to make a consistent creation of it. In the context of service industry, the challenge of making consistent customer satisfaction is bigger than the challenge faced by…

    • 2100 Words
    • 9 Pages
    Best Essays
    Read More
  • Good Essays

    Pros And Cons Of Perks Of Being A Wallflower
    • 467 Words
    • 2 Pages

    Pros And Cons Of Perks Of Being A Wallflower

    “Perks of Being a Wallflower” is book that has been highly debated within the Dubuque Area especially at Hempstead High School. It is said that this book contains graphic sex scenes and pornographic literary images that high school students shouldn’t be exposed to. The other side of the argument is that this book showcases a light within mental health disorders and being an outcasts in schools. This book is based within a high school setting, so educators were thinking this would be good for kids. Hempstead High School should continue to use this book within their Contemporary Literature class without parent notification.…

    • 467 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    A Longitudinal Analysis of Customer Satisfaction and Share of Wallet
    • 14594 Words
    • 59 Pages

    A Longitudinal Analysis of Customer Satisfaction and Share of Wallet

    Customer loyalty is an important strategic objective for all managers. Research has investigated the relationship between customer satisfaction and loyalty in various contexts. However, these predominantly cross-sectional studies have focused on customer retention as the primary measure of loyalty. There has been little investigation into the impact on share of wallet. Using data from the Canadian banking industry, this research aims to (1) provide the first longitudinal examination of the impact of changes in customer satisfaction on changes in share of wallet and (2) determine the moderating effects of customer age, income, education, expertise, and length of relationship. Data from 4319 households using 12,249 observations over a five-year period indicate a positive relationship between changes in satisfaction and share of wallet. In particular, the initial satisfaction level and the conditional percentile of change in satisfaction significantly correspond to changes in share of wallet. Two variables, income and length of the relationship, negatively moderate this relationship. Other demographic and situational characteristics have no impact.…

    • 14594 Words
    • 59 Pages
    Powerful Essays
    Read More
  • Best Essays

    Salty Snacks
    • 4352 Words
    • 18 Pages

    Salty Snacks

    Eakuru, N. and Mat, N.K.N. (2008). The application of structural equation modeling (SEM) in determining the antecedents of customer loyalty in banks in South Thailand. The Business Review, Cambridge, 10(2), 129-139…

    • 4352 Words
    • 18 Pages
    Best Essays
    Read More
  • Powerful Essays

    Research Paper Investment Banking
    • 2382 Words
    • 7 Pages

    Research Paper Investment Banking

    Dempere, J., (2011). Factors that impact customer loyalty in the investment banking industry. Review of Business Summer, 31, 51-68.…

    • 2382 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    What Drives Customer Loyalty and Profitability? Analysis of Perspectives from Retail Customers in Ghana's Banking Industry
    • 22113 Words
    • 89 Pages

    What Drives Customer Loyalty and Profitability? Analysis of Perspectives from Retail Customers in Ghana's Banking Industry

    Customer loyalty as a concept is a critical strategic option in today’s competitive environment. It is no surprise therefore that managers and researchers have increased their study and understanding of the concept as a strategic marketing imperative over the past decades to capture market share and improve profitability. Indeed the theoretical perspective is that competitive pricing as well as company image and reputation contribute to customer satisfaction and that service quality along a number of pathways drives customer loyalty and profitability thus: service quality--> customer satisfaction--> customer loyalty --> market share --> profitability. A few empirical studies have found these linkages to be true. However these factors differ in importance based on the cultural setting. We investigate (1) whether these relationships exist and (2) which of these factor(s) is/are important in motivating consumer loyalty from the perspectives of retail banking customers in Ghana.…

    • 22113 Words
    • 89 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Proposal of Shonali Bank
    • 1406 Words
    • 6 Pages

    Proposal of Shonali Bank

    The purpose of the study was to present the relationship between service quality with customer satisfaction and customer loyalty in Sonali Bank, the leading public sector bank in Bangladesh. The main objectives of the research are:…

    • 1406 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Establishing Profitable Customer Loyalty for Multinational Companies in the Emerging Economies: a Conceptual Framework
    • 2437 Words
    • 10 Pages

    Establishing Profitable Customer Loyalty for Multinational Companies in the Emerging Economies: a Conceptual Framework

    The authors capture our attention by asking why some companies succeed at going multinational while others continue to struggle inspite of making significant efforts to gain market share by investing time and human and financial resources. For example, despite its presence in India since 1993, Coca-Cola has yet to bypass the popularity of the local Indian drink, Thumps Up. Conversely, there are success stories: General Motors’ performance in Brazil, McDonald’s ability to create niches in China and India. This article has more than 20 concise findings (what to dos/what not to dos) for a company to do achieve “Profitable Customer Loyalty”. The study highlighted in this article was a qualitative study interviewing 42 managers of multinational companies from US, Canada, Asia, Europe and Australia to glean insights that identify possible factors that drive the creation of both a profitable and loyal customer base (termed “profitable loyalty” in the study) in emerging economies. The finding related to “innovation” was “Incremental and adaptive innovations are more likely to create PCL in emerging economies than radical innovations”. This article proposes a conceptual framework that can be used to establish profitable customer loyalty in emerging economies. It focuses on the key factors namely- Customer specific, Marketing Mix, Firm specific as well as Moderating variables that can help the MNCs to establish profitable customer loyalty in the long run.…

    • 2437 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Good Essays

    Influence of brand loyalty on consumer sportwear
    • 6258 Words
    • 24 Pages

    Influence of brand loyalty on consumer sportwear

    Asuncion, B., Martin, D.J. & Quintana, A. (2004).Model of customer loyalty in the retail banking market. European Journal of Marketing, 38(1), 253-275.…

    • 6258 Words
    • 24 Pages
    Good Essays
    Read More
  • Good Essays

    Brand Loyality
    • 5091 Words
    • 21 Pages

    Brand Loyality

    Abstract: To be a leading company, it is a massive task to build brand loyalty. Brand is the only word that differentiates the goods and services from the other ones. Therefore the dominated companies spend a lot on the brand to make it unique in order to develop the brand loyalty. Brand loyalty can be created by the numerous ways and strategies but most convenient ones are how much you fulfill your promises in the light of brand credibility, and so on service quality is how much strong if the customer is satisfied then it will show its loyalty towards brand and if not then it shift the intention towards other brand in term of brand switching. This study measures brand loyalty of banking clients of Bahawalpur in Pakistan. A field survey was conducted in Islamia University of Bahawalpur. the study was conducted by 200 respondents, analysis were conducted by mean of exploratory and confirmatory factor, for checking the data and common method variance. For checking the relationship regression analysis were done. The results were quit significant. Findings indicate that bank has performed satisfactorily in presenting a desired…

    • 5091 Words
    • 21 Pages
    Good Essays
    Read More
  • Good Essays

    Literature Review Satisfaction of Students
    • 1678 Words
    • 7 Pages

    Literature Review Satisfaction of Students

    Another article that is reviewed is by Mohammad Muzahid Akbar and Noorjahan Parvez in their research “Impact of Service Quality, Trust and Customer Satisfaction on Customers Loyalty” (2009) studied review on the impact of service quality, trust and customer satisfaction towards customer loyalty within the customers of one of a major private telecommunication company operating in Bangladesh, this research pursues the impacts of customers’ perceived service quality, trust and customer satisfaction on customer loyalty. A technique was applied to investigate service quality, trust and customer satisfaction on customer loyalty, by structured questionnaire comprised of four…

    • 1678 Words
    • 7 Pages
    Good Essays
    Read More
  • Powerful Essays

    Customer Loyalty
    • 1215 Words
    • 5 Pages

    Customer Loyalty

    This paper will mainly focus on customer loyalty. Thus, this will be discussed furthermore exhibiting the evolution of customer loyalty strategy where customer loyalty began in the 1980s as a series of tactical programs. These programs started as simple promotions but then evolved into longer term strategies and by time, companies also developed and implemented some forms of the customer loyalty strategies as stated by Duffy (2005: 284). He also pointed some breakdowns in the past and their solutions in addition to the benefits of loyalty. Tepeci (1999:213), Toh et al. (1993:214), Pritchard and Howard (1997:214), Hunter (1998:214) and Wong et al. (1999:214) agreed with Duffy (1998:435) that approaches need to be conducted in order to structure efficient customer loyalty. And these approaches fall into 3 types: behavioral, attitudinal, and composite. Finally, Reinartz and Kumar (2002: 4) discussed…

    • 1215 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Good Essays

    My Dream
    • 406 Words
    • 2 Pages

    My Dream

    Honda Dreams Fund is the opportunity I have been waiting for to realise my dreams. Since I was young, I have always aspired to be a dental doctor with masters’ degree.…

    • 406 Words
    • 2 Pages
    Good Essays
    Read More

Related Topics