Luận văn thạc sĩ UEH investigate the antecedents of bank loyalty

HCMC- 04/2012

MINISTRY OF EDUCATION AND TRAINING

UNIVERSITY OF ECONOMICS HOCHIMINH CITY

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TRẦN GIAO PHƯỢNG HÀ

INVESTIGATE THE ANTECEDENTS OF

BANK LOYALTY

MASTER’S THESIS

In

Business Administration

Ology code: 60.34.05

Supervisor

Dr. Tran Ha Minh Quan

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Acknowledgement

This research project would not have been possible without the support of

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.

Without him, this thesis could not have been completed.

Special thanks to all instructors without whose knowledge and assistance

this study would not have been successful. I also wish to thank M.A. Nguyen

Thanh Trung for his great support.

My thanks would also go to all of my classmates, my colleagues. I also

wish to thank my friends in Vietcombank, VPBank, Eastern Asia Bank, ACB

and Sacombank for their great support. My thanks would also go to the

respondents, without them, my thesis could not have been done.

Last but not least, the deepest and most sincere gratitude go to my beloved

parents for not only the love they devote to me but also for the time I took from

them which should have been my devotion to them in their aged time. I,

therefore, dedicate this work as a gift to them all.

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Abstract

This study aims to investigate antecedents of customer loyalty to the bank,

related to perceived quality, bank image and customer satisfaction. Based on

theoretical background, scales are developed in accordance with the context of

banking sector in Vietnam. A discussion group of 10 people is to develop and

adjust the scale. Next, a main survey is carried out with the sample of 238

individual consumers to test scales and the research hypotheses.

Research results show that the scales meet the reliability and validity value,

support all hypotheses. In details, bank image has the most influence on

customer loyalty to the bank, followed by perceived quality and customer

satisfaction. We know that image is more deeply engraved, make customers

have good impression on that bank, and customers often decide based on their

perception. Good image is an asset to banking because image affects customer

perception of banks. When customers have a positive image in their minds of the

bank, small errors made by banks are pardonable by customers. Especially, in

the economic crisis, the information about bank with high achievements,

diversified products / services and good board of management creates a

tremendous confidence for the customers. This competitive advantage is

considered as an effective tool in building long term relationship with

customers.

Research on bank loyalty enriches the theory of service loyalty. Banking

services as well as consumer goods are facing fierce competition. This study

helps bank managers capture the drivers of bank loyalty. That creates additional

incentives for managers to develop and implement more effective marketing

programs, enhancing customer loyalty to the bank.

Keyword: banking, bank loyalty, perceived quality, image, customer

satisfaction

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Contents

Acknowledgement ................................................................................................. 1

Abstract .................................................................................................................. 2

Contents ................................................................................................................. 3

List of Tables ......................................................................................................... 6

List of Figures ........................................................................................................ 7

Chapter 1: INTRODUCTION ............................................................................. 8

1.1 Introduction ....................................................................................................... 8

1.2 Research background ........................................................................................ 8

1.3 Research question .............................................................................................. 9

1.4 Scope and methodology of the study .............................................................. 10

1.4.1 Scope of the study .................................................................................... 10

1.4.2 Research method ...................................................................................... 11

1.5 Structure of the study ...................................................................................... 11

Chapter 2: LITERATURE REVIEW ............................................................... 13

2.1 Introduction ..................................................................................................... 13

2.2 Customer loyalty ............................................................................................. 13

2.3 Relationship between perceived quality and loyalty....................................... 14

2.4 Relationship between image and loyalty ........................................................ 15

2.5 Relationship between customer satisfaction and loyalty ................................ 16

2.6 Research model and hypotheses ..................................................................... 17

2.7 Conclusion ....................................................................................................... 18

Chapter 3: METHODOLOGY .......................................................................... 19

3.1 Introduction ..................................................................................................... 19

3.2 Business research ............................................................................................ 19

3.3 Research design ............................................................................................... 20

3.4 Item generation ................................................................................................ 22

3.4.1 Scale to measure perceived quality .......................................................... 22

3.4.2 Scale to measure bank image ................................................................... 23

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3.4.3 Scale to measure customer satisfaction .................................................... 23

3.4.4 Scale to measure bank loyalty .................................................................. 24

3.5 Preliminary study ............................................................................................ 24

3.6 Main study ....................................................................................................... 27

3.6.1 Research sample ....................................................................................... 27

3.6.2 Data analysis techniques .......................................................................... 28

3.7 Conclusion ....................................................................................................... 29

Chapter 4: DATA ANLYSIS AND FINDINGS ............................................... 30

4.1 Introduction ..................................................................................................... 30

4.2 Descriptions of sample .................................................................................... 30

4.3 Scale assessment ............................................................................................. 32

4.3.1 Reliability testing ..................................................................................... 32

4.3.2 Exploratory factor analysis ....................................................................... 35

4.4 Testing research model and hypotheses .......................................................... 37

4.4.1 Testing correlations between all constructs ............................................. 37

4.4.2 Testing research model and hypotheses ................................................... 38

4.5 Conclusion ....................................................................................................... 41

Chapter 5: CONCLUSIONS AND IMPLICATIONS ..................................... 42

5.1 Introduction ..................................................................................................... 42

5.2 Conclusions of the study ................................................................................. 42

5.3 Implications of the study ................................................................................. 43

5.3.1 Theoretical implications ........................................................................... 43

5.3.2 Practical implications ............................................................................... 43

5.4 Limitations and recommendations for further research .................................. 45

List of References ................................................................................................ 47

Appendix 1- Questionnaire (Vietnamese version)............................................ 52

Appendix 2- Observed variables ........................................................................ 55

Appendix 3- Sample characteristics .................................................................. 56

Appendix 4- Reliability Analysis- Cronbach alpha ......................................... 59

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Appendix 5- Exploratory Factor Analysis ........................................................ 64

Appendix 6- Regression Result .......................................................................... 68

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