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The Impact of Brand Image and Service Quality on Consumer Loyalty in the Banking Sector

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  • Sri Wahyuni
  • Imam Ghozali

Abstract

Purpose: The study aims to analyze the extent in which a bank is trying to provide the best service to survive in the long term and what is demanded from it to be the best banking company, by examining the increase of loyalty and Words of Mouth (WOM) of customers through brand image, service quality and customers satisfaction. Design/methodology/approach: This study is based on the answers of 130 respondents from the PT. Bank Rakyat Indonesia. The used method to colect data is the distribution of a questionnaire using a scale from 1-10. For the data analysis was used the Structural Equation Modeling with AMOS version 21 to test the causality of 8 research hypotheses. Findings: The results of this study indicate that there is a positive effect between the quality of service and customer satisfaction, loyalty and WOM, while the brand image has no effect on satisfaction, loyalty and WOM. The result of this research shows that the indirect effect of service quality variable on loyalty is better than that of WOM. Practical implications: The findings suggested that the Bank BRI marketers should be more persistent in publically communicating the bank’s products which are offered to customers and prospective customers. Originality/value: This study examined the effect of brand image, service, customer service in order to increase customer satisfaction, loyalty, and WOM at the largest bank in Indonesia.

Suggested Citation

  • Sri Wahyuni & Imam Ghozali, 2019. "The Impact of Brand Image and Service Quality on Consumer Loyalty in the Banking Sector," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 395-402.
    • Handle: RePEc:ers:ijebaa:v:vii:y:2019:i:4:p:395-402
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    References listed on IDEAS

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    1. Herr, Paul M & Kardes, Frank R & Kim, John, 1991. "Effects of Word-of-Mouth and Product-Attribute Information on Persuasion: An Accessibility-Diagnosticity Perspective," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(4), pages 454-462, March.
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    Cited by:

    1. Luigi Leclercq-Machado & Aldo Alvarez-Risco & Sharon Esquerre-Botton & Camila Almanza-Cruz & Maria de las Mercedes Anderson-Seminario & Shyla Del-Aguila-Arcentales & Jaime A. Yáñez, 2022. "Effect of Corporate Social Responsibility on Consumer Satisfaction and Consumer Loyalty of Private Banking Companies in Peru," Sustainability, MDPI, vol. 14(15), pages 1-17, July.

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    More about this item

    Keywords

    Loyalty; brand image; quality service; satisfaction.;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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