Exploring the Drivers of Bank Loyalty in a Digitized World
https://doi.org/10.35536/ljb.2022.v10.i2.a5
Keywords:
Customer engagement, brand loyalty, online banking, digitization, uses and gratifications theoryAbstract
This study investigates the relationship between customer brand engagement and brand loyalty while exploring the mediating role of online brand experience and customer satisfaction. We aim to fill the theoretical gap in an online banking context by devising a conceptual framework and examining it empirically. We collected primary data from 200 banking customers of the top ten banks in the country. The results support the significance of the relationship, indicating the mediating effect of online brand experience and customer satisfaction. However, the direct connection between brand loyalty and customer engagement remains unsupported, which points to the importance of digitization in contemporary banking. Additionally, this study incorporates the well-known ‘uses and gratifications theory’ with respect to customer engagement within the online banking setting. This research supports the role that digitization plays and the consumer’s preference for online banking compared to conventional banking. Subsequently, efforts to create a better online banking experience would help managers improve their performance.
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