The Effect of Trust and Brand Image on Customer Retention with Customer Loyalty as Intervening Variables to Customers of Sharia Commercial Banks

Nadia Adriane Ricadonna, Muhammad Saifullah, Ari Kristin Prasetyoningrum

Abstract


Sharia banking is currently facing a very competitive industry era. Customer retention is one of the phenomena confronted by Islamic banks in Indonesia. Therefore, the problem in this research is how to increase customer retention in the Islamic banking sector. This study also aims to test and analyze the effect of trust and brand image on customer retention with customer loyalty as an intervening variable. A total of 100 customer respondents who have saving accounts for more than five years at Sharia Bank filled out the questionnaire in this study. The collected data were processed using the Smart PLS program with measurements of the inner and outer model tests. The test results proved that trust, brand image, and customer loyalty positively and significantly affect customer retention in Islamic commercial banks. Meanwhile, indirect testing proved that the customer loyalty variable could mediate customer trust and retention variables. However, it is unable to mediate the brand image variables on customer retention.

 

DOI : https://doi.org/10.26905/jkdp.v25i2.5145


Full Text:

PDF

References


Abosag, I., & Farah, M. F. (2014). The influence of religiously motivated consumer boycotts on brand image, loyalty, and product judgment. European Journal of Marketing, 48(11– 12), 2262–2283. https://doi.org/10.1108/EJM-12-2013-0737

Adzoyi, P. N., Blomme, R. J., & Honyenuga, B. Q. (2018). Customer retention among hotels in an emerging market: An employee-based perspective. Advances in Hospitality and Leisure, 14, 57–73. https://doi.org/10.1108/S1745-354220180000014004

Akintunde, O. A. (2016). Customer Relationship Management ( CRM ) and Customer Retention in Nigeria Banking Industry : A Strategic Standpoint University of Lagos , Nigeria, 10(2), 81–90.

Almohaimmeed, B. (2019). Pillars of customer retention: An empirical study on the influence of customer satisfaction, customer loyalty, customer profitability on customer retention. Serbian Journal of Management, 14(2), 421–435. https://doi.org/10.5937/sjm14-15517

Andreassen, T. W., & Lindestad, B. (1998). Customer loyalty and complex services. The impact of corporate image on quality, customer satisfaction and loyalty for customers with varying degrees of service expertise. International Journal of Service Industry Management, 9(1), 7–23. https://doi.org/10.1108/09564239810199923

Chang, C. C., & Hung, J. S. (2018). The effects of service recovery and relational selling behavior on trust, satisfaction, and loyalty. International Journal of Bank Marketing, 36(7), 1437–1454. https://doi.org/10.1108/IJBM-07-2017-0160

Chou, C., & Chen, M. (2016). A qualitative study on perceived value and loyalty : A moderated-mediation framework 知覺價值與忠誠之質性研究 - 調節中介架構. Corporate Management Review, 36(2), 105–122.

Chu, P. Y., Lee, G. Y., & Chao, Y. (2012). Service quality, customer satisfaction, customer trust, and loyalty in an e-banking context. Social Behavior and Personality, 40(8), 1271– 1284. https://doi.org/10.2224/sbp.2012.40.8.1271

Coussement, K. (2014). Improving customer retention management through cost-sensitive learning. European Journal of Marketing, 48(3/4), 477–495. https://doi.org/10.1108/ejm-03-2012-0180

Darzi, M. A., & Bhat, S. A. (2018). Personnel capability and customer satisfaction as predictors of customer retention in the banking sector: A mediated-moderation study . International Journal of Bank Marketing, 36(4), 663–679. https://doi.org/10.1108/IJBM-04-2017-0074

Datta, P., Fraser, P., & Lebcir, M. (2018). An investigation into the relationship between customer relationship marketing and customer retention: superstore retailing context in Bangladesh. Journal of Business & Retail Management Research, 13(02), 20–36. https://doi.org/10.24052/jbrmr/v13is02/art-03

Espinosa, J. A., Ortinau, D. J., Krey, N., & Monahan, L. (2018). I'll have the usual: how restaurant brand image, loyalty, and satisfaction keep customers coming back. Journal of Product and Brand Management, 27(6), 599–614. https://doi.org/10.1108/JPBM-10-2017-1610

Faullant, R., Matzler, K., & Füller, J. (2008). The impact of satisfaction and image on loyalty: The case of Alpine ski resorts. Managing Service Quality, 18(2), 163–178. https://doi.org/10.1108/09604520810859210

Hanaysha, J. R. (2018). Customer retention and the mediating role of perceived value in retail industry . World Journal of Entrepreneurship, Management and Sustainable Development, 14(1), 2–24. https://doi.org/10.1108/wjemsd-06-2017-0035

Hofman-Kohlmeyer, M. (2016). Customer Loyalty Program As a Tool of Customer Retention: Literature Review. CBU International Conference Proceedings, 4, 199–203. https://doi.org/10.12955/cbup.v4.762

Hoq, M. Z., Amin, M., & Sultana, N. S. (2012). The Effect of Trust, Customer Satisfaction and Image on Customers' Loyalty in Islamic Banking Sector. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1851427

Hsieh, A. T., & Li, C. K. (2008). The moderating effect of brand image on public relations perception and customer loyalty. Marketing Intelligence and Planning, 26(1), 26–42. https://doi.org/10.1108/02634500810847138

Hussein, A. S. T. T., Singh, S. K., Farouk, S., & Sohal, A. S. (2016). Knowledge sharing enablers, processes and firm innovation capability. Journal of Workplace Learning, 28(8), 484–495. https://doi.org/10.1108/JWL-05-2016-0041

Johansson, U., Koch, C., Varga, N., & Zhao, F. (2018). Country of ownership change in the premium segment: consequences for brand image. Journal of Product and Brand Management, 27(7), 871–883. https://doi.org/10.1108/JPBM-10-2017-1651

Kashif, M., Shukran, S. S. W., Rehman, M. A., & Sarifuddin, S. (2015). Customer satisfaction and loyalty in Malaysian Islamic banks: A PAKSERV investigation. International Journal of Bank Marketing, 33(1), 23–40. https://doi.org/10.1108/IJBM-08-2013-0084

Liu, T.-C., & Wu, L.-W. (2007). Customer retention and cross-buying in the banking industry: An integration of service attributes, satisfaction and trust. Journal of Financial Services Marketing, 12(2), 132–145. https://doi.org/10.1057/palgrave.fsm.4760067

Luhung, A.A dan Kusumargiani, I.S. “Analisis Pengaruh Dimensi Customer Relationship Marketing terhadap Customer Retention (Studi Kasus Pada PT Bank Muamalat Indonesia Cabang Semarang”. Jurnal Sains dan Perbankan Syariah. Vol.5 No. 2 (2015) : 47.

Milan, G. S., Slongo, L. A., Eberle, L., De Toni, D., & Bebber, S. (2018). Determinants of customer loyalty: a study with customers of a Brazilian bank. Benchmarking, 25(9), 3935–3950. https://doi.org/10.1108/BIJ-08-2017-0231

Mohd Kassim, N., & Souiden, N. (2007). Customer retention measurement in the UAE banking sector. Journal of Financial Services Marketing, 11(3), 217–228. https://doi.org/10.1057/palgrave.fsm.4760040

Narteh, B., & Braimah, M. (2019). Corporate reputation and retail bank selection: the moderating role of brand image. International Journal of Retail and Distribution Management, 48(2), 109–127. https://doi.org/10.1108/IJRDM-08-2017-0164

Nguyen, N., & Leblanc, G. (1998). The mediating role of corporate image on customers' retention decisions: An investigation in financial services. International Journal of Bank Marketing, 16(2), 52–65. https://doi.org/10.1108/02652329810206707

Nillie, P., Blomme, R. J., & Quarshie, B. (2013). Advances in Hospitality and Leisure, iii. https://doi.org/10.1108/s1745-3542(2013)0000009019

Omoregie, O. K., Addae, J. A., Coffie, S., Ampong, G. O. A., & Ofori, K. S. (2019). Factors influencing consumer loyalty: evidence from the Ghanaian retail banking industry. International Journal of Bank Marketing, 37(3), 798–820. https://doi.org/10.1108/IJBM- 04-2018-0099

Preikschas, M. W., Cabanelas, P., Rüdiger, K., & Lampón, J. F. (2017). Value co-creation, dynamic capabilities and customer retention in industrial markets. Journal of Business and Industrial Marketing, 32(3), 409–420. https://doi.org/10.1108/JBIM-10-2014-0215

Ranaweera, C., & Prabhu, J. (2003). The influence of satisfaction, trust and switching barriers on customer retention in a continuous purchasing setting. International Journal of Service Industry Management, 14(3–4), 374–395. https://doi.org/10.1108/09564230310489231

Ratih, F. ; H. J. (2015). Analisis pengaruh kualitas pelayanan, kualitas produk, kepercayaan, dan nilai nasabah terhadap, 5, 1–20.

Reiersen, J. (2019). Drivers of trust and trustworthiness. International Journal of Social Economics, 46(1), 2–17. https://doi.org/10.1108/IJSE-01-2018-0025

Statistik Perbankan Syariah 2015-2019, diakses disitus https://ojk.go.id/id pada 25 Januari 2020.

Tabrani, M., Amin, M., & Nizam, A. (2018). Trust, commitment, customer intimacy and customer loyalty in Islamic banking relationships. International Journal of Bank Marketing, 36(5), 823–848. https://doi.org/10.1108/IJBM-03-2017-0054

Trasorras, R., Weinstein, A., & Abratt, R. (2009). Value, satisfaction, loyalty and retention in professional services. Marketing Intelligence and Planning, 27(5), 615–632. https://doi.org/10.1108/02634500910977854

Tung, B., & Carlson, J. (2015). Examining determinants of cross buying behaviour in retail banking. International Journal of Quality and Reliability Management, 32(8), 863–880. https://doi.org/10.1108/IJQRM-11-2012-0148

Upamannyu, N. K., & Mathur, G. (2012). Effect of Brand Trust, Brand Affect and Brand Image on Customer Brand Loyalty and Consumer Brand Extension Attitude in FMCG Sector. PRiMa: Practices and Research in Marketing, 3(2), 116–189.

Veloutsou, C. (2015). Brand evaluation, satisfaction and trust as predictors of brand loyalty: the mediator-moderator effect of brand relationships. Journal of Consumer Marketing, 32(6), 405–421. https://doi.org/10.1108/JCM-02-2014-0878

Yu, P. L., Balaji, M. S., & Khong, K. W. (2015). Building trust in internet banking: A trustworthiness perspective. Industrial Management and Data Systems, 115(2), 235–252. https://doi.org/10.1108/IMDS-09-2014-0262

Yu, T. W., & Tseng, L. M. (2016). The role of salespeople in developing life insurance customer loyalty. International Journal of Retail and Distribution Management, 44(1), 22– 37. https://doi.org/10.1108/IJRDM-06-2014-0074




DOI: https://doi.org/10.26905/jkdp.v25i2.5145

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Jurnal Keuangan dan Perbankan (Journal of Finance and Banking)

Diploma Program of Banking and Finance, Faculty of Economics and Business, University of Merdeka Malang

Published by University of Merdeka Malang

Mailing Address:
2nd floor Finance and Banking Building, Jl. Terusan Raya Dieng No. 57 Malang, East Java, Indonesia
Phone: -
Email: [email protected]

This work is licensed under a Creative
Commons Attribution-ShareAlike 4.0