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

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

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Bùi Thanh Phong

Graduate School of Business, Assumption University


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. 


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 switch their traditional service providers (Philip, 2002). Loyalty factors are an organization's most reliable success indicator (Zeithaml and Bitner, 1996). Also, this increased customer loyalty can help lower marketing costs, solicit more customers, and effectively operate trading leverages (Aaker, 1997). Additionally, the loyalty customers become an advocate concept for the service can be defined: providing positive word-of-mouth, recommendation the service to other, encouraging others to use service and defending the service provider and generate higher corporate profits (Reichheld et al. 2000). As the market becomes more competitive advantage, many companies recognized the importance of retaining current customers and have some initiated variety of activities to improve customer loyalty (Rosalind and Audrey, 2007). Faced with this situation, some service providers have considered to the quality standards in their business such as ISO 9001. Actually, the service providers can get the big profit from those standards and loyalty customers. Any service industries are banking, restaurant, hotel, beauty… the service encounter satisfaction is really considered as a core value to affect and maintain the loyalty customers.

1. To study of the significant relationship between friendship and customer loyalty.

2. To test the relationship between brand image and customer loyalty.

3. To find out the significant relationship between service encounter satisfaction and customer loyalty.

4. To establish an understanding of the significant relationship between perceived core service and service counter satisfaction.

5. To analyze the significant relationship between social regard and perceived core service.

6. To determine the significant relationship between social comfort and perceived core service.


The purpose of this study is to develop and implement a method for banking service to identify attributes that will increase customer...
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