Luận văn thạc sĩ UEH key antecedents of customer loyalty, a study of small chartered commercial

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

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Vu Thanh Hoan

KEY ANTECEDENTS OF CUSTOMER

LOYALTY: A STUDY OF SMALL CHARTERED

COMMERCIAL BANKS

MASTER OF BUSINESS (Honours)

Ho Chi Minh City – Year 2014

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

------------------------------

Vu Thanh Hoan

KEY ANTECEDENTS OF CUSTOMER

LOYALTY: A STUDY OF SMALL CHARTERED

COMMERCIAL BANKS

ID: 22110021

MASTER OF BUSINESS (Honours)

SUPERVISOR: DR. CAO HAO THI

Ho Chi Minh City – Year 2014

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ACKNOWLEDGEMENTS

I would like to express my sincere gratitude to my supervisor, Dr. Cao Hao Thi for the

valuable advice, critical comments and encouragement he gave me.

I would like to express my gratitude to my ISB class friends for SPSS directions. Your

encouragement, excellent guidance, and support have greatly contributed to this thesis.

Finally, I would like to thank all of the respondents without whom, this research would

have been impossible.

Ho Chi Minh City, March 01, 2014

Vu Thanh Hoan

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ABSTRACT

It is costly to attract new customers so that the managers always try to find ways to retain

their current customers and concentrate on different factors which enhances the customer

loyalty among the customers of the organizations. This research attempts to find the

factors of customer loyalty and their relationships with banking industry in one of the

developing countries i.e. Vietnam, where the large part of banking industry are small

chartered commercial banks.

In order to do this, a questionnaire is designed and validated, then based on the data

which were gained from the 150 respondents' answers to the designed questionnaire, the

analysis is done and the results and the relations among the factors are explained.

Customer’s Perceived Quality, Customer Satisfaction, Customer Trust, Switching Cost

and Customer Commitment are the factors which influence the Loyalty of the customers.

These factors also influence each other as well. The relationships of different factors with

each other are also studied and the SPSS software is used to analyze the data gathered

from the respondents.

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TABLE OF CONTENTS

Chapter 1 Introduction ........................................................................................... 1

1.1 Background.......................................................................................................... 1

1.2 Research problems................................................................................................2

1.3Research Objectives.............................................................................................. 4

1.4 Research Scope.................................................................................................... 4

1.5 Thesis structure.....................................................................................................4

Chapter 2 Literature Review.................................................................................. 6

2.1 Customer loyalty ..................................................................................................6

2.2 Customer's perceived quality ...............................................................................8

2.3 Customer satisfaction ........................................................................................11

2.4 Switching Cost .................................................................................................. 13

2.5 Customer Trust ................................................................................................. 16

2.6 Commitment ...................................................................................................... 17

2.7 Research model and Hypothesis ....................................................................... 18

Chapter 3 Research Methodology........................................................................ 21

3.1 Research Process .............................................................................................. 21

3.2 Measurement scales........................................................................................... 22

3.2.1 Perceived quality .............................................................................. 22

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3.2.2 Customer trust................................................................................... 22

3.2.3 Switching cost................................................................................... 23

3.2.4 Customer satisfaction ....................................................................... 23

3.2.5 Customer commitment ..................................................................... 24

3.2.6 Customer loyalty............................................................................... 24

3.3 Qualitative research ........................................................................................... 25

3.4 Sampling method ............................................................................................... 25

3.4.1 Sampling ........................................................................................... 26

3.4.2 Data collection .................................................................................. 26

3.5 Data analysis methods ....................................................................................... 26

3.5.1 Cronbach’s alpha............................................................................... 26

3.5.2 Exploratory Factor Analysis ............................................................. 27

3.5.3 Multiple regression analysis.............................................................. 28

Chapter 4 Data Analysis and results ................................................................... 29

4.1 General Information ......................................................................................... 29

4.2 Measurement assessment .................................................................................. 30

4.2.1 Cronbach’s alpha .............................................................................. 30

4.2.2 Exploratory Factor Analysis ............................................................. 31

4.3 Hypothesis testing.............................................................................................. 32

4.3.1 Testing customer satisfaction sub-model ......................................... 34

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4.3.2 Testing customer commitment sub-model ....................................... 34

4.3.3 Testing customer loyalty sub-model................................................. 35

Chapter 5 Conclusions and Implications ........................................................... .38

5.1 Conclusions .................................................................................................... .38

5.2 Implications ..................................................................................................... .39

5.3 Limitations ....................................................................................................... .41

References............................................................................................................... 42

Appendix 1: Questionaire........................................................................................ 52

Appendix 2: Results of Exploratory factor analysis ............................................... 58

Appendix 3: Simple linear regression results (S).................................................... 60

Appendix 4: Multiple linear regression results (CMT)........................................... 62

Appendix 5: Multiple linear regression results (CL)............................................... 64

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