Determinants of Customer Satisfaction and Loyalty in Vietnam’s Retail Banking: The Role of Digital Innovation and CSR

The retail banking sector in Vietnam is undergoing rapid transformation, driven by advancements in artificial intelligence (AI) and financial technology (fintech), particularly in enhancing customer experience and fostering product innovation. This study investigates the key determinants of customer decision-making in Vietnam’s retail banking landscape, with a focus on product pricing, innovation, personalization, and service quality. Data were collected from 202 retail banking customers via a structured questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that product pricing exerts the strongest influence on customer satisfaction and loyalty, followed closely by service quality. Product innovation also contributes significantly to customer satisfaction and loyalty, whereas personalization demonstrates a comparatively limited effect. Additionally, the study highlights the role of corporate social responsibility (CSR) in reinforcing customer trust and advocacy. These insights suggest that banks should prioritize competitive pricing strategies, continuous product innovation, and superior service delivery to enhance customer satisfaction and loyalty in the context of digital transformation. By integrating CSR initiatives into their strategic frameworks, banks can further strengthen customer relationships and foster long-term loyalty. This research contributes to the literature by extending existing consumer behavior models to include both product-related and non-product-related factors, offering practical implications for the strategic management of retail banking services in emerging markets.