INTRODUCTION
Introduction
Customer loyalty is a crucial topic in marketing, as long-term customers serve as both a significant profit source and a valuable advertising channel Cultivating loyal customers can lead to increased sales, reduced costs, and the ability to charge higher prices Research by Reichheld and Sasser (1990) indicates that companies can enhance profits by over 85% by decreasing customer defection rates by just 5% Despite this potential, many businesses experience a loss of 15% to 20% of their customers annually, highlighting the importance of customer loyalty research among economists and marketers worldwide.
Vietnam, an emerging economy, has a marketing landscape that remains underdeveloped compared to the US, Europe, and some Asian nations (Khuat, 2012) As a result, many businesses have yet to prioritize customer loyalty and recognize its significance for enhancing performance The country has faced economic challenges in recent years, with the recession impacting numerous businesses, leading to bankruptcies and uncollectible bank debts, although the situation is less severe than in stronger economies (The Financeplus, 2009; Le).
In 2014, many smaller banks in Vietnam merged with stronger institutions to survive, leading to the closure of numerous branches and transaction offices due to operational inefficiencies (The Vietinbank Network, 2014) This shift has ushered in a new era of retail banking, targeting individual customers with smaller transactions but a higher volume of deals Despite the potential of a market with over ninety million residents, the performance of Vietnamese retail banking remains underwhelming (The VPBS Report, 2014) State-owned banks, in particular, often overlook the loyalty of long-term individual customers in favor of establishing new relationships with larger enterprises (Nguyen, 2014) This lack of focus on nurturing long-term customer loyalty highlights the need for banks to improve their retail banking strategies, making this study a valuable resource for enhancing customer retention in Vietnam's banking sector.
Research background
Vietnam's retail banking sector is recognized as an emerging market with significant growth potential (VPBS Report, 2014; Keith Pogson, as cited in Thanh Thanh Lan, 2014), yet it faces challenges with low customer loyalty This analysis highlights the key characteristics of the market that contribute to these dynamics.
As of 2013, Vietnam's population reached approximately 90 million, with 50% actively participating in the labor force Despite this, only 20% of the population held bank accounts, indicating a significant 80% potential market for retail banking The country's economic growth has led to notable increases in both Gross Domestic Product (GDP) and Gross National Income (GNI) per capita, reflecting rising average incomes and improved living standards Additionally, the cultural tendency in Asian countries to save more as income increases further drives the demand for financial services, highlighting the substantial opportunities within Vietnam's retail banking sector.
Despite a notable increase in banking service usage in Vietnam, with market penetration rising from 6% in 2006 to 21% in 2011, the overall adoption rate remains low compared to the Pacific region's 55% According to the VPBS Report 2014, the percentage of individuals over 15 years old using debit and credit cards in Vietnam is significantly lower than in several developed Asian countries For instance, Thailand leads with a 43% debit card usage rate, followed by China at 41%, Singapore at 29%, and the Philippines at 23%, while Vietnam's rate stands at only 15% Furthermore, Vietnam's credit card usage is alarmingly low at just 1%, ranking the lowest among the surveyed countries.
The high potential of Vietnam's retail banking sector is significantly influenced by the uneven distribution of banking services between urban and rural areas As illustrated in Table 1 (see Appendix A), approximately 30% of branches and transaction offices of State-Owned Commercial Banks and Foreign Banks, along with over 50% of Commercial Banks, are concentrated in just four major cities: Hanoi, Ho Chi Minh City, Danang City, and Can Tho City In contrast, the remaining banking services are dispersed across 59 provinces and cities throughout Vietnam, highlighting a substantial opportunity for growth in underserved regions.
Table 2 (see Appendix A) highlights the distribution of infrastructure within Vietnam's banking system in 2013, revealing that Hanoi and Ho Chi Minh City possess a transaction office density nearly 50 times greater than the national average Consequently, the average number of customers served at each transaction office in these cities is 30% lower than the overall average for Vietnam Additionally, the usage of ATMs and POS systems in these urban areas is approximately 30% to 40% below the national average, indicating a notable impact on service quality.
The quality of retail banking services in four major cities surpasses the national average, highlighting a disparity in development across regions This uneven distribution presents opportunities for recruitment and growth in underserved areas.
The banking sector in Vietnam faces significant challenges regarding customer loyalty due to the overwhelming number of approximately 49 banks offering similar services, in stark contrast to Australia and Japan, which have only 3 to 4 major banks (Keith Pogson, Douglas J Hamilton; Thanh Thanh Lan, 2014) Furthermore, bank marketing in Vietnam remains underdeveloped compared to neighboring countries, leading to customer confusion amidst numerous bank brands that are often forgotten or unrecognized A report by VPBS (2014) highlights this issue, revealing that Agribank, one of Vietnam's largest banks, experienced a 1.91% decline in market share between 2010 and 2013.
Low service quality from bank personnel can result in customer defection, as highlighted by the lack of professional experience among staff in some banks (Le Chi, 2013; The Infonet, 2013) Interviews with customers in prominent banks in Ho Chi Minh City reveal several issues: long wait times, often exceeding one hour during peak periods, are common due to an overload of customers for bank tellers Additionally, staff members frequently lack the time to introduce new promotional programs or engage in cross-selling The high-stress environment and crowded conditions can lead to bank tellers interacting with customers in an unfriendly manner While bank managers concentrate on policies and marketing strategies, they often overlook the importance of monitoring staff interactions This neglect in addressing customer dissatisfaction in an era dominated by information technology can result in significant losses for banks.
A negative experience shared on social media, such as Facebook or Twitter, regarding a withdrawal issue at a Vietcombank branch in Ho Chi Minh City can lead to significant repercussions for the bank This not only results in the loss of the dissatisfied customer but also risks damaging the bank's reputation among potential clients who may be influenced by their friend's negative feedback.
An interview with banking professors from Vietinbank highlighted a concerning trend in retail banking, where some branches prioritize acquiring new relationships with large enterprises over nurturing long-term individual customers This strategy often leads banks to deny credit to existing individual clients, even those with strong, established relationships, in favor of extending credit limits to corporations Additionally, a one-sided perspective persists in some state-owned banks, where the belief that customers solely need the banks results in passive service from tellers This lack of engagement means that banks often close accounts at customers' requests without understanding their reasons or attempting to retain their business, ultimately undermining the significance of customer loyalty in enhancing banking performance.
In conclusion, Vietnam's retail banking sector presents significant potential for economic development Despite recent positive changes, state-owned banks have not prioritized the retail segment as outlined in their objectives, leading to a lack of conditions that foster customer loyalty Focusing on long-term customers is crucial, as they not only contribute to profit generation but also serve as a valuable advertising channel Therefore, researching the factors that influence customer loyalty in retail banking is essential.
Research gap
Reichheld and Sasser (1990) demonstrated that customer loyalty significantly impacts business performance, revealing that retaining just 5% of customers can increase profits by up to 85% As a result, understanding the factors that drive customer loyalty has become a key focus for marketers globally.
Retail banking in Vietnam is emerging as a promising trend due to its large population, yet the banking system reveals significant inadequacies Vietnamese banks, such as Vietinbank and Eximbank, prioritize acquiring new customers over retaining existing ones, as evidenced by their Key Performance Indicators (KPIs) that focus solely on new customer growth without addressing customer attrition Consequently, marketing efforts predominantly target new clients, with few initiatives aimed at rewarding long-term customers The limited research on factors influencing customer loyalty in Vietnam's retail banking sector highlights the need for further investigation This empirical study seeks to identify key determinants of customer loyalty that are recognized in various countries.
Numerous factors influence bank selection, customer behavioral intentions, and loyalty in both the United States and Asia Key determinants of customer loyalty include perceived quality and customer satisfaction, as highlighted by various studies (Parasuraman et al., 1988; Parasuraman et al., 1991; Boulding et al., 1993; Zeithaml et al., 1996) Additionally, research identifies other significant factors such as brand awareness (Aaker, 1996; Jing et al., 2014), service quality (Laroche et al., 1986; Sinkula & Lawtor, 1988; Ying & Chua, 1989), and convenience (Laroche et al., 1986; Martenson).
1985; Lewis, 1982; Schram, 1991), social influence (Chua, 1980; Martenson, 1985), service personnel (Ying & Chua, 1989) and switching costs (Beerli et al., 2004; Cronin & Taylor, 1992; Hellier et al., 2003).
Despite numerous studies on customer loyalty in Vietnam's retail banking sector, most focus on one or two determinants Research by Phan and Ghantous (2013) highlights the role of brand associations and social influence in shaping customer trust and loyalty, while Pham and Le (2010) explore how personal service values affect loyalty However, there is a lack of comprehensive studies examining a broader range of factors influencing customer loyalty, including brand awareness, convenience, service personnel, and switching costs This study aims to investigate the impact of these factors, alongside satisfaction and social influence, on individual customer loyalty in Vietnam's banking industry, serving as a valuable resource for managers seeking to enhance retail banking services.
Research objective
Customer loyalty is crucial for the growth of retail banking services, yet research on this topic is limited in Vietnam compared to global studies The determinants of customer loyalty, such as Brand Awareness, Convenience, Service Personnel, Customer Satisfaction, Social Influence, and Switching Costs, may vary significantly due to cultural and ethnic differences Therefore, it is essential to review existing theories from other countries and assess their applicability in the Vietnamese context This study specifically examines the influence of these six factors on customer loyalty within Vietnam's retail banking sector, while acknowledging that the relationships among these determinants are not explored and could be addressed in future research.
In order to accomplish the study purpose, the author defines and focuses on some following research objectives:
Customer loyalty in retail banking is influenced by several key determinants, including brand awareness, convenience, service personnel, customer satisfaction, social influence, and switching costs These factors play a crucial role in shaping customer perceptions and behaviors, driving loyalty in various markets around the world Understanding and optimizing these elements can significantly enhance customer retention and overall business success in the competitive banking sector.
- Constructing the research model of the relationships between each determinant and customer loyalty in Vietnam retail banking
- Testing the model in Vietnam retail banking market
Research Scope and Research Contribution
This study examines key factors influencing customer loyalty in the retail banking sector, highlighting its significance for business performance Focusing on the emerging trends in Vietnamese banks, the research is conducted in Ho Chi Minh City for convenience Due to certain limitations, the analysis specifically investigates the simultaneous impact of six determinants on customer loyalty in Vietnam's retail banking: Brand Awareness, Convenience, Service Personnel, Satisfaction, Social Influence, and Switching Costs.
This study enhances theories and empirical research on customer loyalty in retail banking, serving as a valuable resource for banking managers It provides insights to improve retail banking services, which are increasingly becoming a focus for commercial banks in Vietnam.
Research structure
This study is divided into five chapters that provide following contexts:
Chapter 1 provides the background of this study, defines research gap and research objective This chapter also points out the scope and contribution of the current study, as well as draws out the structure of content.
Chapter 2 provides the comprehensive review of literature about customer loyalty and related concepts This chapter also develops the hypothesized conceptual model.
Chapter 3 provides the conceptual regarding research design and sampling The research methodology is also defined in this chapter.
Chapter 4 includes data analysis, results of this study and all hypotheses testing
Chapter 5 is the discussion, implications and limitations of the study.
LITERATURE REVIEW
Retail Banking
In recent years, retail banking has emerged as a key marketing strategy for Vietnamese commercial banks, focusing on providing banking services to individuals and small to medium-sized enterprises Unlike wholesale banking, which deals with larger transactions, retail banking is characterized by a high volume of smaller transactions, making it a vital component of the banking sector (Buckle & Thompson, 1998).
Retail banking refers to mass-market banking services provided by larger commercial banks through local branches, catering to individual customers Key offerings in this sector include savings and checking accounts, mortgages, personal loans, debit cards, and credit cards.
Retail banking diversifies business risk more effectively than wholesale banking, which primarily serves large corporations This is because retail banking targets individuals and small to medium enterprises, resulting in numerous transactions with smaller individual values (Le, 2011).
Due to differences between individual customers and small enterprises, this study restricts the concept of retail banking within individual customers.
Customer Loyalty
Customer loyalty is a crucial objective for marketers due to its strong positive impact on business performance Research indicates that acquiring new customers is significantly more expensive than retaining existing ones For instance, a study by Reichheld and Sasser (1990) reveals that a fourth-year customer generates three times the profit of a first-year customer in the auto-service industry Given its importance, many scholars are dedicated to defining customer loyalty and identifying its key determinants.
Early research on customer loyalty primarily focused on behavioral aspects, particularly repeat patronage (Cunningham, 1956; Massy et al., 1970; Kahn et al., 1986) However, studies examining repurchase behavior alone fail to clarify the underlying reasons for customer loyalty to a brand (Dick & Basu, 1994) Recognizing this gap, scholars have begun to emphasize the importance of psychological factors alongside behavioral elements Thus, customer loyalty is now defined as a combination of relative attitude and repeat patronage (Day, 1969; Dick & Basu, 1994).
Jacoby and Kyner (1973) defined loyalty as a consistent behavioral response over time by a decision-making unit towards specific brands, influenced by psychological processes This definition highlights that loyalty involves selective purchasing behavior rather than random choices among various alternatives.
In 1973, the idea of the "decision-making unit" was introduced, focusing on the individuals responsible for making purchasing decisions rather than just the actual users or buyers when researching customer loyalty.
Oliver (1999) delineates loyalty as the commitment to repurchase a favorite brand although the situational factors or marketing efforts can cause switching behaviors.
Customer loyalty can be categorized into various levels based on the interplay between attitude and behavior, ranging from no loyalty to spurious, latent, and genuine loyalty (Dick & Basu, 1994) Additionally, Kuusik (2007) identifies three distinct scenarios of customer loyalty: loyalty that is compelled, loyalty resulting from inertia, and functional loyalty.
In the purchasing process, the consumer passes through three “successive related phases”, which are cognitive, affective-evaluative and conative (Lavidge & Steiner, 1961; Dick & Basu, 1994)
This study defines Customer Loyalty in retail banking as the strong relationship between customers' positive attitudes towards their preferred bank and their consistent repeat patronage.
Customer loyalty plays a crucial role in enhancing business performance, prompting various studies to explore its determinants within the retail banking sector While extensive research has been conducted primarily in the United States and Europe, there remains a scarcity of official studies focused on the Asian context Additionally, many of these existing studies predominantly rely on surveys targeting student demographics.
In examining theories of customer loyalty, it is essential to clarify the connections between bank selection, behavioral intention, and customer loyalty The factors influencing why customers choose a specific bank for transactions are known as determinants of bank selection, while customer loyalty reflects the repeated patronage of customers towards their chosen bank This consistent selection of the same bank over time fosters loyalty, indicating that the determinants of bank selection directly impact customer loyalty Additionally, behavioral intention serves as a key determinant of loyalty, suggesting that the factors influencing behavioral intention also play a significant role in shaping customer loyalty.
Surveys conducted among residents and students in the United States and Asia have identified several key factors influencing bank selection, behavioral intention, and customer loyalty Notably, perceived quality and customer satisfaction are recognized as critical determinants of customer loyalty (Parasuraman et al., 1988; Parasuraman et al., 1991; Boulding et al., 1993; Zeithaml et al., 1996) While previous research indicates a positive relationship between these factors and customer loyalty, they do not always fully account for loyalty behaviors For instance, some consumers remain loyal despite dissatisfaction with services Additional determinants, such as brand awareness (Aaker, 1996; Jing et al., 2014), service quality (Laroche et al., 1986; Sinkula & Lawtor, 1988; Ying & Chua, 1989), convenience (Laroche et al., 1986; Martenson, 1985; Lewis, 1982; Schram, 1991), social influence (Chua, 1980; Martenson, 1985), and the quality of service personnel, have also been recognized as influential in fostering customer loyalty.
& Chua, 1989) and switching costs (Beerli et al., 2004; Cronin & Taylor, 1992; Hellier et al., 2003).
Chua (1980) discovered that social influences, particularly from family and friends, play a significant role in the bank selection process among Singaporean students In contrast, the impact of third-party influences is minimal in determining the banking choices of Singapore undergraduates, as highlighted by Gerard & Cunningham (2001) and Ta & Har (2000).
From previous studies of the determinants of customer loyalty above, Vietnamese background and the interview with a group of people who are individual customers in
This study examines the factors influencing customer loyalty in Vietnam's retail banking sector, specifically focusing on brand awareness, convenience, service personnel, customer satisfaction, social influence, and switching costs Each of these determinants will be analyzed in detail in the following sections.
Brand Awareness
Brand awareness is a crucial aspect of brand equity, reflecting consumers' ability to recognize and recall a brand amidst various alternatives in different situations It signifies the strength of a brand's presence in the minds of consumers.
Brand awareness encompasses both brand recall and brand recognition, highlighting its varied levels among consumers While some individuals may easily identify a brand among its competitors, they may struggle to recall its name, illustrating the nuanced nature of consumer awareness (Mariotti, 1999; Laurent et al.).
1995) The highest brand awareness is unaided recall when consumer is aware of a brand without any external stimulus (Mariotti, 1999; Laurent et al, 1995).
Brand awareness belongs to cognitive phase, which is a part of relative attitude in customer loyalty (Lavidge & Steiner, 1961; Dick & Basu, 1994) Hence, brand awareness has an influence on relative attitude.
Increased brand awareness significantly enhances the likelihood of consumer repurchase, as individuals tend to remember a selection of brands they recognize and consider for purchase Prior to making a buying decision, brand awareness serves as a crucial factor in helping consumers choose from their consideration set (Hoyer & Brown, 1990) Thus, brand awareness plays a vital role in influencing purchasing behavior.
Brand awareness significantly impacts customer loyalty by affecting both relative attitude and purchase behavior Consequently, this leads to the formulation of the following hypothesis.
Hypothesis 1: Brand awareness has a positive relationship with customer loyalty.
Convenience
As society becomes more developed, people's lives are increasingly busy, leading them to seek convenience in their shopping experiences Customers are less likely to spend excessive time visiting familiar stores when they can access similar services nearby Consequently, the demand for convenient services has surged, prompting service providers to implement innovative strategies to enhance customer convenience Numerous studies have explored the importance of convenience in both retail and banking services.
Service convenience, as defined by Morganosky (1986), is the ability to complete a task quickly and with minimal effort, highlighting the importance of saving time and energy for customers (Brown, 1990) This aspect of convenience can significantly influence customer retention, particularly in standardized services like banking, where it can serve as a barrier to defection when satisfaction declines (Michael et al., 2003) Furthermore, Lee and Marlowe (2003) note that perceptions of convenience vary among individuals; for instance, young people prioritize accessible ATMs, while older adults focus on branch locations and transaction hours Thus, factors such as location, transaction hours, and ATM availability play a crucial role in defining service convenience.
Numerous studies indicate that convenience significantly impacts customer loyalty and repurchase intentions (Jones et al., 2003), as well as influencing bank selection (Laroche et al., 1986; Martenson, 1985; Lee & Marlowe, 2003) It is a crucial element in service quality measurement scales like SERVQUAL
Hypothesis 2: Convenience has a positive influence on customer loyalty.
Service Personnel
Service personnel encompass the skills and attitudes of employees in customer interactions, playing a crucial role in differentiating banking competitors, particularly in Vietnam, where the government's ceiling rate policy limits variations in service and interest rates among commercial banks As a result, the primary distinguishing factors are the capital size and the quality of service provided by staff Unlike other sectors, banking relies on intangible services delivered by well-educated employees, with customer perceptions shaped by their interactions with banking officers Consequently, the quality of banking staff is vital, yet it varies significantly across Vietnam due to differing backgrounds and regional cultures.
Similar to convenience, service personnel is also one of standards used to estimate service quality Service personnel is also mentioned in SERVQUAL scale (Parasuraman et al.,
The SERVPERF scale (Cronin & Taylor, 1992), DTR scale (Dabholkar et al., 1996), and MLH model (Mehta et al., 2000) highlight the significance of service quality, which has been shown to positively influence behavioral intentions (Parasuraman et al., 1988; Parasuraman et al., 1991; Boulding et al., 1993; Zeithaml et al., 1996) Consequently, the role of service personnel is crucial in fostering customer loyalty, leading to the formulation of Hypothesis 3.
Hypothesis 3: Service Personnel has a positive influence on customer loyalty.
Customer Satisfaction
Customer satisfaction is a crucial factor influencing customer loyalty, as it reflects the feelings experienced after consuming a service It is often viewed as the balance between expected service quality and perceived service quality; customers feel satisfied when the service quality they perceive exceeds their expectations Conversely, when perceived service quality falls short of expectations, dissatisfaction arises.
Dick and Basu (1994) define satisfaction as the post-purchase response to a brand after matching expectations and perceived performance.
Numerous studies indicate that customer satisfaction significantly impacts repurchase intentions, with satisfied customers being more likely to repurchase than their dissatisfied counterparts (Cronin & Taylor, 1992; Oh, 1999) This repurchase behavior serves as a key indicator of customer loyalty While Fornell (1992) suggests that loyal customers may not always express satisfaction, it is clear that satisfied customers are more inclined to demonstrate loyalty Therefore, satisfaction is recognized as a critical precursor to customer loyalty (Bitner, as cited in Dick & Basu, 1994).
Due to previous points of view on the relationship between satisfaction and loyalty, the hypothesis 4 is given as below.
Hypothesis 4: Customer satisfaction has a positive influence on customer loyalty.
Social Influence
Social influence refers to the influence caused by reference groups such as media, family, friends, and peers on an individual’s consumption behavior (Ryan, 1982; Ryan & Bonfield, 1975; Mei Min et al.2012).
According to Deutsch and Gerard (as cited in Phan & Ghantous, 2013), consumers are influenced by others in two key ways: through informative influence, where they seek information about products or services from peers, and through normative influence, where they choose products or services that are endorsed by others.
Social influence is a determinant of patronage behavior (Darden, as cited in Evans et al.,
1996) Many previous studies show the social influence on purchase behavior (Bloch et al., 1994; Feinberg et al., 1989; Evans et al., 1996).
Hofstede (as cited in Phan & Ghantous, 2013) highlights the impact of collectivism and individualism on consumer behaviors Collectivist cultures emphasize interdependence and group orientation, while individualistic cultures prioritize independence and self-direction Consequently, individuals from collectivistic backgrounds tend to exhibit behaviors that reflect their community-oriented values.
Consumers in collectivist cultures are significantly more influenced by social factors, such as reference groups and social norms, compared to those in individualistic cultures This tendency to conform to social influences is well-documented in research by Dogerlioglu-Demir and Tansuhaj, as well as Gupta, highlighting the importance of social dynamics in shaping consumer behavior in these societies (Phan & Ghantous, 2013).
Vietnam's strong collectivist culture significantly influences consumer purchasing behavior and customer loyalty, particularly within the retail banking sector Research by Phan and Ghantous (2013) highlights the crucial role of social influence in shaping loyalty among Vietnamese customers Building on these findings, we propose the following hypothesis regarding the impact of social dynamics on consumer loyalty in Vietnam.
Hypothesis 5: Social influence has a positive influence on customer loyalty.
Switching Costs
Switching costs play a crucial role in customer loyalty, encompassing both financial and non-financial factors such as time and effort that customers incur when changing service providers According to Cronin & Taylor (1992), Klemperer (1995), and De Ruyter et al (1998), these costs create significant barriers for customers Selnes (1993) further defines switching costs as technical, financial, or psychological obstacles that make it challenging and costly for customers to switch to a different brand.
Switching costs significantly impact customer behavior, particularly when consumers consider changing brands due to dissatisfaction Although customers may be inclined to seek alternatives, they encounter various costs associated with this transition, including the time and effort required to research and compare options, potential fees for closing and opening accounts, and the risk of selecting an inferior service These factors play a crucial role in shaping customer intentions When the dissatisfaction experienced outweighs the perceived switching costs, customers are more likely to pursue a new brand.
Customers often hesitate to switch banks due to potential costs and dissatisfaction with their current bank's service For instance, if customers are unhappy with bank officers, they may consider withdrawing their savings to transfer to a new bank However, before making the switch, they must weigh several factors, including the fees associated with early withdrawal, high remittance costs, the risks of carrying cash, and the possibility of poor service at the new bank Ultimately, they must balance their dissatisfaction with the current bank against these switching costs to make an informed decision.
Research indicates that higher perceived switching costs lead to decreased attractiveness of competing brands, making customers less likely to switch (Selnes, 1993; Klemperer, 1995; De Ruyter et al., 1998) These switching costs create barriers that keep customers loyal to a company, even if this loyalty is spurious, characterized by low relative attitude but high repeat patronage (Dick & Basu, 1994) Based on these findings, this study introduces Hypothesis 6 regarding the impact of switching costs.
Hypothesis 6: Switching costs have a positive influence on customer loyalty.
Research Model
According to research objective and questions, research model is established based on literature review and the relationships between customer loyalty and its determinants in Vietnamese retail banking.
Hypothesis 1: Brand awareness has a positive relationship with customer loyalty in Vietnamese retail banking.
Hypothesis 2: Convenience has a positive influence on customer loyalty in Vietnamese retail banking.
Hypothesis 3: Service Personnel has a positive influence on customer loyalty in Vietnamese retail banking.
Hypothesis 4: Customer satisfaction has a positive influence on customer loyalty in Vietnamese retail banking.
Hypothesis 5: Social influence has a positive influence on customer loyalty in Vietnamese retail banking.
Hypothesis 6: Switching costs have a positive influence on customer loyalty in Vietnamese retail banking.
The six hypotheses above are presented in the figure of research model below.
RESEARCH METHODOLOGY
Research Design
Singleton and Straits (2005) identify several research methods, including survey, experimental, qualitative, and historical research Researchers select one or more methods based on their study's objectives In this study, the survey research method is utilized to examine the relationships between customer loyalty and its determinants.
Survey research is a valuable method for analyzing the characteristics, attitudes, behaviors, and opinions of specific populations It enables the collection of diverse information from a large sample, directly gathering data from real-life situations (Singleton & Straits, 2005) According to Singleton and Straits, survey research stands out as the most effective means of social description.
The measurement scales for seven concepts in the research model were developed based on theories reviewed in Chapter 2 An initial questionnaire was created using these scales and tested through in-depth interviews with eight customers of commercial banks in Vietnam The interviews aimed to ensure respondents comprehended the questionnaire, enhancing the quality of the measurement scales and the collected data Feedback from the interview group was documented to refine and finalize the questionnaire.
The final questionnaires were distributed through email, Google Surveys, and direct outreach to the defined study population The collected data was then filtered and entered into an Excel file for SPSS analysis Incomplete questionnaires or those with identical responses across all statements were excluded from the dataset Subsequently, essential tests were conducted using the SPSS program.
- Test of Reliability to ensure the measurement scales were reliable and significant
- EFA test to clutch 25 items into meaning groups
- Correlation test to make the necessary condition for regression
- Test for the assumption of Regression Model to ensure the model did not violate the assumption.
Research process is below in figure 5:
Pilot Test al Questionnaire Questionnaire
Analysis Factor Analysi Reliability Anal M vey
Li Fin ain Sur s ysis d ns
Sampling
Sampling is a crucial step in hypothesis testing, as it reduces costs and saves time To ensure reliable results, the sample must accurately represent the research population There are two main types of sampling: probability sampling, which offers better representation but requires more time and resources, and non-probability sampling This study opts for non-probability sampling due to its efficiency.
This study investigates the impact of Brand Awareness, Convenience, Service Personnel, Customer Satisfaction, Social Influence, and Switching Costs on Customer Loyalty within the retail banking sector in Vietnam The research focuses on individuals and households who are customers of commercial banks in the country.
Ho Chi Minh City was selected as the sample area for this study due to several key factors As Vietnam's largest and most developed city, it boasts a higher concentration of individuals utilizing banking services, benefiting from modern facilities The quality of banking services in Ho Chi Minh City is regarded as the best in the country, surpassing that of Hanoi and rural regions Additionally, a significant number of residents possess a strong background and understanding of banking services, leading to improved interactions between bank staff and customers Thus, conducting the survey in Ho Chi Minh City provides a diverse and representative sample of the population.
Vietnam's banking sector features approximately 49 competing banks, with Ho Chi Minh City serving as the primary hub where nearly all commercial banks have established branches This concentration in Ho Chi Minh City provides a comprehensive perspective on the retail banking landscape in Vietnam.
This study focuses on customer loyalty within the retail banking sector in Vietnam, specifically targeting individuals and households who are customers of banks in Ho Chi Minh City Conducting surveys among current customers offers convenience in distributing questionnaires, while also ensuring that the data collected reflects real experiences Key concepts in the research model, including service personnel and customer satisfaction, are best understood through the perspectives of those who have directly engaged with banking services, making firsthand input essential for accurate measurement.
Defining an appropriate sample size is crucial for research, as it impacts the generalizability of findings to the target population The sample size should align with the study's nature and the statistical methods employed for data analysis, ensuring sufficient statistical power (Hair et al., 2009) For validation purposes, Babbie and Mouton (2001) suggest that a survey should include approximately 50 subjects, depending on the number of assessments conducted.
Determining the appropriate sample size is crucial for effective technical analysis in research This study utilized Exploratory Factor Analysis and multiple regression techniques, necessitating a sufficiently large sample size According to Hair et al (2009), a minimum of five observations per item and at least 100 total observations is recommended for Exploratory Factor Analysis For the regression model, the sample size (n) is calculated using the formula n = 50 + 8k, where k represents the number of independent variables In this study, the multiple regression model includes one dependent variable, Customer Loyalty, and six independent variables: Brand Awareness, Convenience, Service Personnel, and Customer Satisfaction.
The study examines social influence and switching costs, utilizing measurement scales that include 25 items For the Exploratory Factor Analysis, a minimum sample size of 125 observations is required, while the regression model necessitates at least 98 observations, calculated as 50 plus eight times six.
To conclude, the minimum sample size for this study is 125 observations because it satisfies all requirements of Exploratory Factor Analysis and regression model.
Questionnaire Design
A questionnaire translates research concepts into measurable items through respondents' answers Researchers can create these questionnaires based on in-depth interviews or established theories This study developed a measurement scale for seven concepts grounded in prior research.
The initial questionnaire comprised 25 items, utilizing various established measurement scales Brand Awareness was assessed using five items adapted from Aaker (1996) Convenience was measured through three items adapted from Lee and Marlowe (2003) The Service Personnel scale included five items based on Hellier et al (2003), while Customer Satisfaction was evaluated with three items from Cronin et al (2000) Social Influence was gauged using three items from Phan and Ghantous (2013), and both Switching Costs and Customer Loyalty were measured with three items each from Beerli et al (2004).
The initial questionnaire was tested by a diverse group of eight customers from banks in Ho Chi Minh City, including an architect, a pharmaceutical representative, a student, a retiree, two logistics staff, and two business professionals, all of whom were clients of Vietinbank, Vietcombank, and Asia Commercial Bank While the group demonstrated a good understanding of 25 items, some statements required clearer wording Feedback from the interviewees was documented to facilitate adjustments to the questionnaire (see Appendix B) The measurement scales for the seven concepts in the research model are detailed in the table below.
Table 3 - Construction of Measurement scale
I clearly know my bank Adapted from
Aaker (1996) When talking about banking, I will remember my bank
I can recognize my bank among others
I can distinguish my bank from others
Characteristics of my bank could come to me quickly
This bank has convenient location Adapted from Lee and Marlowe This bank has many ATMs
This bank has convenient hours
Employees understand my specific needs Adapted from
Hellier et al (2003) Employees are always willing to help me
Employees tell me exactly when a service can be provided
Behavior of employees instills confidence to me
Employees give me prompt service
My choice to avail this bank service is a wise one Adapted from
I did the right thing when I chose this bank for its services
Services of this bank are exactly same what I need
I often consult other people to help choose the best banking service from various banks
I frequently gather information from other people about the banking service I intend to use
I often observe what banking service others are using
Adapted from Phan and Ghantous (2013)
To change to another bank requires me to invest time in searching for information about other banks
Adapted from Beerli et al (2004)
To change to another bank involves me much effort in deciding which bank to use
To change to another bank involves me a risk in choosing another bank which might turn out not to satisfy me
I do not like to change to another bank because I value the selected bank
Adapted from Beerli et al (2004)
I am a customer loyal to my bank
I would always recommend my bank to someone who seeks my advice
The final questionnaire for the survey research was revised based on prior studies and in-depth interviews with a Vietnamese group (refer to Appendix C) To adapt foreign theories to the Vietnamese context, the 25 items were translated into Vietnamese (see Appendix D) before being distributed to the study population.
The questionnaire comprised of two sections (Section I and II) Each section was designed to acquire the required information.
Section I : is the main part beginning with the two open questions about the bank the respondents frequently visit and the kinds of banking service they are using in that bank The purpose of these two questions is to help the respondents focus on the bank they answered to do the whole survey The next in this section was 25 items constructed above, measured with five- point Likert Scale from 1-Strongly Disagree, 2-Disagree, 3-Neutral, 4-Agree to 5-Strongly agree. This section measures all seven concepts in the research model.
Section II: is the general information of the respondent, including gender, age,occupation and average monthly income This section was designed to acquiring specific demographic information.
Data Collection Result
In the sampling section, we defined the minimum size for this survey is 125 observations.
A total of 330 questionnaires, translated into Vietnamese, were distributed to bank customers in Ho Chi Minh City through email, Google surveys, and direct distribution at bank branches.
A total of 120 questionnaires were randomly distributed to customers of various banks in Ho Chi Minh City, specifically targeting Vietinbank Branch 7, Eximbank Tan Dinh Branch, and Vietcombank Phu My Hung Branch Out of these, 283 responses were received; however, 25 were deemed invalid due to incomplete answers or identical responses across all questions Consequently, the final dataset consisted of 258 valid observations, as detailed in the accompanying table.
Table 4 – Source of questionaire collection
Source Distributed Collected Eliminated Valid
Data Analysis Method
The data analysis was performed using SPSS software version 19, employing the enter method To ensure the validity and reliability of the measurement scales, Cronbach’s Alpha analysis and Exploratory Factor Analysis (EFA) were conducted Any items failing to meet the reliability and validity criteria were removed prior to regression analysis Subsequently, six hypotheses were tested through multiple regression to examine the relationships between various determinants and customer loyalty.
This chapter outlines the research methodology, covering aspects from research design to sampling, measurement scale development, data collection, and data analysis methods The findings derived from the data collection will be presented in the following chapter.
DATA ANALYSIS
Descriptive Analysis
The demographic statistic conducted by SPSS in the table below illustrated the study population.
No Demographic Description Frequency Percent
This study investigates the factors influencing retail banking customer loyalty in Vietnam, focusing on current customers of various banks in Ho Chi Minh City The survey revealed that a significant majority of respondents, 58%, were female, with 150 women out of 258 total respondents, highlighting a cultural trend where women are typically responsible for managing family finances in Vietnamese households.
In this sample, office staff and businesspersons represent the largest group, making up 70% of respondents, followed by workers at 17.8% and students at 7.4% These groups are key individual customers in retail banking services, as they typically have a high demand for credit, account management, money remittance, payment solutions, and savings options Consequently, the insights gathered from these respondents are valuable for the study.
Over half of Vietnam's population is of working age, with a significant concentration of the labor force in major cities housing financial centers and large industrial zones This demographic trend presents a promising market for retail banking in Vietnam Notably, over 70% of survey respondents fall within the 18 to 45 age range, a critical period for earning and wealth accumulation, making this group a key segment for retail banking services.
In the surveyed population, over 50% of respondents reported a monthly income between 10 million and 20 million dongs, while nearly 23% earned between 5 million and 10 million dongs Only 15.1% of participants had incomes exceeding 20 million dongs, and 10% earned less than 5 million dongs According to Maslow's hierarchy of needs, individuals prioritize their income for basic physiological needs such as food and living expenses, with saving through retail banking services becoming a secondary concern Consequently, higher income levels correlate with increased engagement in banking services, as evidenced by over 90% of respondents earning more than 5 million dongs per month, highlighting the significance of income in this study.
In summary, the survey data gathered from individual customers of various banks in Ho Chi Minh City indicates that the sample is suitable for examining the factors influencing customer loyalty within the retail banking sector Given the unique advantages and characteristics of Ho Chi Minh City as a major financial hub, this study population effectively represents the broader retail banking market in Vietnam Therefore, testing the model with this sample holds significant value and could provide insights for the advancement of Vietnam's retail banking industry.
Reliability Test
Before conducting any regression analysis, it's essential to perform a reliability test, with Cronbach’s alpha serving as a key metric for assessing internal consistency This coefficient, which ranges from 0 to 1, helps determine the reliability of measurement scales A Cronbach’s alpha value above 0.6 indicates a reliable measurement scale, while a corrected item-total correlation exceeding 0.4 further supports this reliability Conversely, if the corrected item-total correlation is negative or below 0.3, it is crucial to review the item for potential wording issues or conceptual misalignment, and consider whether to remove such items from the analysis.
2005) The result of reliability test for 25 items in this study was presented in the table below.
Observed VariableScale Mean if Item DeletedScale Variance if Item DeletedCorrected Item- Total CorrelationCronbach's Alpha if Item Deleted
The analysis revealed that all seven variables exhibited Cronbach's alpha values exceeding 0.6, indicating good reliability Specifically, the items BAW1, BAW2, BAW3, BAW4, and BAW5 had Cronbach's alpha if Item Deleted values lower than the overall Brand Awareness alpha of 0.842 Similarly, the Convenience variable, consisting of items CON1, CON2, and CON3, showed alpha if Item Deleted values below its own alpha of 0.626 This pattern was consistent across other variables, including Service Personnel, Satisfaction, Social Influence, Switching Cost, and Loyalty Importantly, none of the 25 items had Corrected Item-Total Correlation values below 0.4, confirming the reliability of the measurement scale for the seven variables without necessitating the removal of any items.
Exploratory Factor Analysis (EFA)
Exploratory Factor Analysis (EFA) is a valuable method for assessing construct validity by grouping items into distinct components, each representing a specific concept The determination of the number of components to extract is typically guided by the eigenvalue criterion, where an eigenvalue greater than 1.0 indicates that the factor accounts for more information than a single item Conversely, factors with an eigenvalue below 1.0 are deemed less informative than individual items.
This study utilized two Exploratory Factor Analysis (EFA) tests, employing Principal Component Analysis and the Varimax Rotation Method The first EFA analyzed 22 items across six independent variables, while the second focused on the remaining three items of the dependent variable.
In Exploratory Factor Analysis, there are some indicators need to be considered:
The Kaiser-Meyer-Olkin (KMO) value is a crucial indicator in factor analysis, with a threshold of greater than 0.70 considered ideal A KMO value of 0.60 is acceptable, while a value below 0.50 indicates poor sampling adequacy (Leech et al., 2005) This test assesses whether the items in a dataset are appropriately predicted by the underlying factors.
- The Bartlett test should be significant to prove that the variables are correlated highly enough to provide a reasonable basis for factor analysis (Leech et al, 2005)
The initial Exploratory Factor Analysis (EFA) test comprised 22 items aimed at assessing the clustering of these items in alignment with the previously designed measurement scale The findings, including the KMO and Bartlett’s Test results, Rotated Component Matrix, and Total Variance Explained, are detailed in the tables provided below.
The KMO value of 0.843 in the Exploratory Factor Analysis indicates a strong adequacy of the items for each factor, exceeding the threshold of 0.7 Additionally, the Bartlett’s Test yielded a significant result with a p-value less than 0.05, confirming that the variables are sufficiently correlated for effective factor analysis.
Table 7 – KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling 843
Bartlett's Test of Approx Chi-Square 3597.181
Following the rotation, Table 7 revealed that six components were extracted from 22 items based on the criterion of eigenvalue greater than 1 These components comprised items with high factor loadings exceeding 0.5, as illustrated in the table Additionally, the Rotated Component Matrix confirmed that all items were successfully categorized into the six components, aligning with the measurement scale developed in the preceding section.
Extraction Method: Principal Component Analysis
Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 6 iterations.
Moreover, the Total Variance Explained value of six components extracted was 72.374%,greater than 50%, meaning that these components could explain 72.374% of the information contained in six independent variables.
Extraction Method: Principal Component Analysis.
From all indicators analyzed above, the items of each construct of six independent variables were well conceptualized.
The KMO value exceeded 0.6, indicating acceptable sampling adequacy, while the Bartlett’s Test revealed significant results with a p-value less than 0.05, confirming the suitability of the three items for the dependent variable (Leech et al., 2005).
Kaiser-Meyer-Olkin Measure of Sampling Adequacy .636
Bartlett's Test of Sphericity Approx Chi-Square Df
Table 10 – KMO and Bartlett's Test
The Total Variance Explained table indicated the extraction of a single component from the three items of the dependent variable, which demonstrated high factor loadings (refer to Table 10) with an eigenvalue greater than 1 This component accounted for 69.648% of the variance in the dependent variable.
Initial Eigenvalues Extraction Sums of Squared Loadings
Extraction Method: Principal Component Analysis.
.901 827 770 Extraction Method: Principal Component Analysis. a 1 components extracted.
In conclusion, the factor Loyalty extracted from EFA was fully satisfied the conditions of data reduction for the next multi variable regression analysis.
Correlation Matrix
The reliability test and Exploratory Factor Analysis established foundational criteria for regression analysis, but it is essential to assess the correlation among variables, as this is a crucial factor in validating the regression model.
Table 13, generated by the SPSS program, indicated significant correlations at the 0.01 level (2-tailed) between six independent variables—BAW, CON, SP, SAT, SI, and SC—and the dependent variable, LOY Consequently, regression analysis was deemed appropriate for this survey.
BAW CON SP SAT SI SC LOY
** Correlation is significant at the 0.01 level (2-tailed).
* Correlation is significant at the 0.05 level (2-tailed).
Regression Assumption Tests
According to Leech et al (2005), there were some main assumptions for a multiple regression model.
Assumption 1: There was a linear relationship between independent variables and dependent variable
Assumption 2: The residual was distributed normally
Assumption 3: There was no multicollinearity among independent variables
The next sections would apply some techniques of SPSS program to consider whether any assumption of the regression model was violated.
To evaluate assumption 2, the overall regression plot's shape is crucial; a curvilinear pattern suggests that the predictors do not have a linear relationship with the dependent variable The plot presented in Appendix E supports this assumption effectively.
The validity of this assumption can be verified through the residual scatter plot chart; a random dispersion of dots indicates that the data adheres to the assumption of normally distributed residuals.
In this research, this assumption was confirmed (see Appendix E)
Multicollinearity is a critical assumption to address before conducting multiple regression analysis, as it can distort the significance of data analysis results This issue arises when there are high inter-correlations among independent variables (Leech et al., 2005) To evaluate this assumption, a correlation matrix can be utilized to assess the relationships between the variables.
The correlation matrix (refer to Table 13) indicated that all Pearson correlation values between variable pairs were below 0.8, with significance levels lower than 0.05 This suggests that the correlation among predictors is not sufficiently high to lead to multicollinearity issues.
In other words, this matrix proved that there would be a low possibility of multicollinearity.
While the Correlation matrix is useful for detecting multicollinearity, it may not always be reliable To ensure accuracy, it's important to examine the Variance Inflation Factor (VIF) values in the Coefficients table As noted by Leech et al (2005), a VIF value greater than 2 indicates multicollinearity In this study, all predictors had VIF values below 2, and the Tolerance values exceeded 0.339 (calculated as 1 - R² = 1 - 0.6612) Consequently, the model demonstrated no signs of multicollinearity, confirming that assumption 4 was satisfied.
In summary, the data almost met all the required assumptions Therefore, all predictors were qualified enough for multiple regression analysis.
Regression Analysis
The analysis confirmed that a regression model could be applied, as there were significant correlations between six determinants—Brand Awareness (BAW), Condition (CON), Service Personnel (SP), Satisfaction (SAT), Social Influence (SI), and Switching Costs (SC)—and customer loyalty (LOY), with no violations of regression assumptions Using the SPSS program, a multiple regression analysis was performed with these six independent variables and the dependent variable, loyalty, utilizing the enter method.
Std Error of the Estimate
1 818 a 669 661 36872 669 84.588 6 251 000 1.671 a Predictors: (Constant), SC, SP, CON, SI, BAW, SAT b Dependent Variable: LOY
The findings presented in Table 14 indicate a strong correlation coefficient (R) of 0.818, with an R square value of 0.669 and an Adjusted R Square of 0.661 This suggests that 66.1% of the variance in customer loyalty within Vietnam's retail banking sector can be explained by six independent variables: Brand Awareness (BAW), Condition (CON), Service Personnel (SP), Satisfaction (SAT), Social Influence (SI), and Switching Costs (SC) Consequently, the regression model utilized in this study demonstrates a robust fit.
Model Sum of Squares Df Mean Square F Sig.
Total 103.125 257 a Dependent Variable: LOY b Predictors: (Constant), SC, SP, CON, SI, BAW, SAT
The table 15 showed the F value was 84.588 and the significance value was lower than 1.5 This means that the model significantly predicted the changes of dependent variable.
B Std Error Beta Tolerance VIF
Table 16 presents the significance values, Standardized Coefficients Beta, and Collinearity Statistics for each independent variable, which were crucial for evaluating the six hypotheses (refer to Table 17) With all six determinants showing significance values below 0.05, we accepted all hypotheses Furthermore, the Unstandardized Coefficients for these six variables were all greater than 0, indicating a positive influence on customer loyalty.
Brand awareness has a positive relationship with
H1 customer loyalty in Vietnamese retail banking.
Convenience has a positive influence on customer
H2 loyalty in Vietnamese retail banking.
Service Personnel has a positive influence on
H3 customer loyalty in Vietnamese retail banking.
Customer satisfaction has a positive influence on
H4 customer loyalty in Vietnamese retail banking.
Social influence has a positive influence on
H5 customer loyalty in Vietnamese retail banking.
Switching costs have a positive influence on
H6 customer loyalty in Vietnamese retail banking.
In a study analyzing customer loyalty in Vietnam's retail banking sector, the SPSS program was utilized to convert Unstandardized Coefficients B into Standardized Coefficients Beta for comparison The findings revealed that Brand Awareness, Satisfaction, and Switching Costs emerged as the most significant determinants of customer loyalty, with Beta values of 0.270, 0.240, and 0.212, respectively Among these, Brand Awareness was identified as the strongest influencer of customer loyalty, while Service Personnel, Convenience, and Social Influence had lesser impacts, with Beta values of 0.163, 0.158, and lower.
0.158 The next section would analyze each hypothesis in detail.
Hypothesis 1: Brand awareness has a positive influence on customer loyalty in Vietnamese retail banking
The hypothesis was validated due to a significance value below 0.05, indicating that Brand Awareness positively influences customer loyalty with an Unstandardized Coefficient B of 0.262 and a Standardized Coefficient Beta of 0.270, the highest among six determinants This suggests that retail customers in Vietnam exhibit strong loyalty to their banks when they can easily recall and recognize them These findings align with previous research, establishing Brand Awareness as a key cognitive antecedent impacting customer loyalty (Lavidge and Steiner, 1961; Dick & Basu, 1994).
Hypothesis 2: Convenience has a positive influence on customer loyalty in Vietnamese retail banking
The hypothesis was accepted due to a significance value below 0.05, indicating that Convenience has a positive influence on customer loyalty, as evidenced by an Unstandardized Coefficient B of 0.172 This finding aligns with previous studies (Lee & Marlowe, 2003; Mokhlis et al., 2009; Almossawi, 2001; Thwaites & Vere, 1995; Laroche et al., 1986; Schram, 1991) However, the Standardized Coefficient Beta of 0.158 was the lowest among the six determinants, suggesting that, in the context of Vietnam's retail banking, customers place the least importance on Convenience compared to the other factors.
Thwaites and Vere (1995) identified convenience, particularly the proximity of bank branches and ATMs, as a key factor for Canadian consumers and British students when choosing a bank However, in Vietnam, the influence of convenience on banking customers is diminished due to the rapid expansion of bank branches and ATMs in major cities like Hanoi, Ho Chi Minh City, and Danang Additionally, the widespread adoption of advanced technology allows customers to perform transactions at any branch within the same banking system, regardless of where they opened their accounts, effectively reducing the significance of location.
Hypothesis 3: Service Personnel has a positive influence on customer loyalty in Vietnamese retail banking
The hypothesis was validated due to a significance value of less than 0.05 Additionally, the Unstandardized Coefficient B was 0.139, indicating a positive influence of Service Personnel on customer loyalty, supported by a Standardized Coefficient Beta of 0.163 These findings align with previous research conducted by Laroche et al (1986), Khazeh & Decker (1993), Thwaites et al (1997), and Almossawi (2001).
Hypothesis 4: Customer satisfaction has a positive influence on customer loyalty in Vietnamese retail banking
The hypothesis regarding customer satisfaction was accepted, as its significance value was below 0.05 The Unstandardized Coefficient B of 0.177 indicates a positive influence on customer loyalty, while the Standardized Coefficient Beta of 0.240 positions Satisfaction as the second most important factor affecting customer loyalty in Vietnam's retail banking sector, following Brand Awareness This suggests that higher customer satisfaction leads to increased loyalty towards banks, whereas dissatisfaction can result in customer defection These findings align with previous research highlighting the positive relationship between satisfaction and loyalty.
Hypothesis 5: Social influence has a positive influence on customer loyalty in Vietnamese retail banking
The hypothesis was accepted due to a significance value below 0.05, aligning with studies by Ta and Har (2000) and Gerard and Cunningham (2001) on bank selection among Singapore undergraduates In Vietnam's retail banking sector, reference from others was identified as the least influential factor on customer loyalty, indicated by the lowest Standardized Coefficient Beta of 0.158 Nonetheless, Social Influence had a significantly positive effect on loyalty (p