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The Mediating Role of Trust in the Relationship Between Corporate Image, Security, Word of Mouth and Loyalty in M-Banking Using among the Millennial Generation in Indonesia

Author

Listed:
  • Purwanto Edi

    (Pembangunan Jaya University, Tangerang, Banten, IndonesiaManagement & Science University, Shah Alam, Malaysia)

  • Deviny July

    (Bunda Mulia University, Jakarta, Indonesia)

  • Mutahar Ahmed M.

    (Management and Science University, Malaysia)

Abstract

Millennials have a lifestyle that is different from previous generations. Millennial Generation lives and grows together with rapid technological growth and currently dominates the population in Indonesia. The purpose of this study is to empirically determine the factors that influence the millennial generation’s loyalty to mobile banking applications. Elements used to analyze the millennial generation’s loyalty are corporate image, application security, word of mouth (WoM), and trust. Data collected through questionnaires from a sample of 395mobile banking users in Indonesia. The study uses structural equation modeling (SEM) to test the hypotheses with Amos 24 as the analysis tool. The results of the study proved that all predictions are proven significant. The trust in mobile banking mediates the effects of corporate image, application security, and word of mouth on millennial’s loyalty. The respondent of the research was millennial mobile banking users in Indonesia. Therefore, the model should be replicated among other mobile banking users in other countries. Banks have to maintain an excellent corporate image and get a positive transmission because, in this digitalization era, information can spread very quickly between friends, relatives, family, or through the internet, digital media, and social media. Banking also needs to include a guaranteed level of application security in the mobile banking application provided to gain the trust of users and be able to foster and increase their loyalty. However, there are still other factors that can influence millennial’s loyalty to a mobile banking application.

Suggested Citation

  • Purwanto Edi & Deviny July & Mutahar Ahmed M., 2020. "The Mediating Role of Trust in the Relationship Between Corporate Image, Security, Word of Mouth and Loyalty in M-Banking Using among the Millennial Generation in Indonesia," Management & Marketing, Sciendo, vol. 15(2), pages 255-274, June.
    • Handle: RePEc:vrs:manmar:v:15:y:2020:i:2:p:255-274:n:8
    DOI: 10.2478/mmcks-2020-0016
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    References listed on IDEAS

    as
    1. Edi Purwanto, 2014. "The Effect of Consumer Ethnocentrism on Perceived Domestic Product Quality and Purchase Intentions among Young Consumers in Jakarta, Indonesia," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 4(9), pages 1003-1012, September.
    2. Ratna Sri Widyastuti & Boedi Armanto, 2013. "Kompetisi Industri Perbankan Indonesia," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 15(4), pages 1-24, April.
    3. Mert Gürlek & Ertugrul Düzgün & Selma Meydan Uygur, 2017. "How does corporate social responsibility create customer loyalty? The role of corporate image," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 13(3), pages 409-427, August.
    4. Ratna Sri Widyastuti & Boedi Armanto, 2013. "Banking Industry Competition In Indonesia," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 15(4), pages 1-34, April.
    5. Shelby R. Curtis & Jessica Rose Carre & Daniel Nelson Jones, 2018. "Consumer security behaviors and trust following a data breach," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 33(4), pages 425-435, April.
    6. Edi Purwanto, 2014. "The Effect of Consumer Ethnocentrism on Perceived Domestic Product Quality and Purchase Intentions among Young Consumers in Jakarta, Indonesia," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 4(9), pages 1003-1012.
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    1. Chan, Vanessa Hiu Ying & Chiu, Dickson K.W. & Ho, Kevin K.W., 2022. "Mediating effects on the relationship between perceived service quality and public library app loyalty during the COVID-19 era," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).

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