The effect of bank reputation on loyalty – the moderating role of bank type

IF 2.1 Q3 BUSINESS
Rashmi Sharma, R. Joshi
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引用次数: 3

Abstract

PurposeThis paper aims to investigate the role of bank reputation (via its proposed dimensions) in influencing bank trust and its subsequent effect on the loyalty of the customer. The study has also explored the moderating role of bank type (public vs private bank) in the relationship between the dimensions of bank reputation and bank trust.Design/methodology/approachA total of 651 questionnaires were distributed to the customers of public and private bank, whereas only 375 usable responses were obtained. Questionnaires were given to the respondents through the visit of few interviewers to several private and public banks in Delhi and NCR region during December 2019 to February 2020. A screening question was included in the beginning of the questionnaire (i.e. Do you trust your bank?). Non-random sampling technique was used for data collection, and the research design was cross-sectional. The proposed framework was tested with the help of structural equation modeling.FindingsThe findings of the study show that all the proposed dimensions (i.e. service quality, stability, customer centricism and corporate performance) of corporate reputation/bank reputation significantly affect bank trust. Also, the effect of bank trust on loyalty was found significant. Bank type emerged as a significant moderator between the dimensions of bank reputation and bank trust. It shows that the effect of service quality, stability, customer centricism and corporate performance on bank trust significantly differs in public vs private banks. Customer centricism is perceived to be high in private banks, whereas all the other three dimensions are obtained to be higher in public sector banks according to the findings of the study.Practical implicationsThe presented framework in the study has covered all the significant antecedents of bank trust and its subsequent effect on loyalty. The findings of the paper are useful to several stakeholders, including bank managers, regulators, investors and depositors. The study shows that bank reputation affects trust and loyalty in the long run. This relationship can be used by bank managers for gaining the trust of customers and building loyalty. It also helps in making strategies by banks for targeting customers. Stability is a very crucial factor for a developing economy. The bank regulators can use these results for ensuring the soundness of the banking system and for providing a stable environment for customers. Bank depositors and investors can also use the findings of the study for analyzing the factors that affect their bank selection decision.Originality/valueThe present research shows that bank type moderates the relationship of the dimensions of bank reputation and bank trust in an emerging economy in Asia.
银行声誉对忠诚的影响——银行类型的调节作用
本文旨在探讨银行声誉(通过其提出的维度)在影响银行信任中的作用及其对客户忠诚度的后续影响。本研究还探讨了银行类型(公共银行与私人银行)在银行声誉与银行信任维度关系中的调节作用。设计/方法/方法共向公共和私人银行的客户发放了651份问卷,而只有375份可用的回复。在2019年12月至2020年2月期间,通过少数采访者访问德里和NCR地区的几家私人和公共银行,向受访者发放了调查问卷。问卷的开头有一个筛选问题(即你信任你的银行吗?)资料收集采用非随机抽样技术,研究设计采用横断面法。利用结构方程模型对所提出的框架进行了验证。研究结果表明,企业声誉/银行声誉的所有维度(即服务质量、稳定性、客户中心主义和企业绩效)都显著影响银行信任。此外,银行信任对忠诚度的影响也显著。银行类型在银行声誉与银行信任的关系中起着重要的调节作用。结果表明,服务质量、稳定性、客户中心主义和公司绩效对银行信任的影响在公私银行中存在显著差异。根据研究结果,在私人银行中,客户中心主义被认为是高的,而在公共部门银行中,所有其他三个维度都被认为是更高的。实践启示本研究所提出的框架涵盖了银行信任的所有重要前因及其对忠诚度的后续影响。本文的研究结果对包括银行经理、监管机构、投资者和储户在内的几个利益相关者都很有用。研究表明,从长远来看,银行声誉会影响信任和忠诚度。这种关系可以被银行管理者用来获得客户的信任和建立忠诚度。它还有助于银行制定针对目标客户的策略。稳定是发展中经济体的一个非常关键的因素。银行监管机构可以利用这些结果来确保银行体系的健全,并为客户提供一个稳定的环境。银行存款人和投资者也可以利用研究结果分析影响其银行选择决策的因素。本研究表明,在亚洲新兴经济体中,银行类型调节了银行声誉与银行信任维度的关系。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
6.30
自引率
8.30%
发文量
18
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