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Article
Publication date: 1 March 1986

Oded Shenkar and Ephraim Yuchtman‐Yaar

The existence of a positive image is important for banks throughout the world. However, different countries are exposed to particular circumstances which affect their image. The…

Abstract

The existence of a positive image is important for banks throughout the world. However, different countries are exposed to particular circumstances which affect their image. The image of the Israeli banking industry was evaluated in a survey in August 1984, using a sample of about 1,200 individuals, representative of the urban Jewish population. A decline in banking's ratings for effectiveness, fairness and quality of counselling between 1980 and 1984 is shown. This is probably due to the Israeli bank share crisis of 1983. Banking is considered a very influential sector but the public is wary of it. Innovativeness scored highly, signalling an opportunity for the industry to improve its image with the advance of bank automation. Prestige also scored highly.

Details

International Journal of Bank Marketing, vol. 4 no. 3
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 10 August 2010

Roland K. Yeo and Mohamed A. Youssef

The paper seeks to explore the factors that would make an impact on the corporate image of large commercial banks in Saudi Arabia through the perceptions of direct customers. It…

3162

Abstract

Purpose

The paper seeks to explore the factors that would make an impact on the corporate image of large commercial banks in Saudi Arabia through the perceptions of direct customers. It proposes an appropriate way of measuring corporate image in the Saudi banking industry through the development of a questionnaire.

Design/methodology/approach

A questionnaire, presented in English and Arabic, was piloted and tested to a group of banking customers in three major cities of Saudi Arabia.

Findings

Results indicate that three factors significantly influence perception: “financial prospects”, “corporate management” and “corporate communication”. These explain 67.7 per cent of the total variance. The notion of “market presence” was not strongly felt in the Saudi banking industry despite the growing trend of internationalization of large commercial banks in the country.

Research limitations/implications

Corporate image is regarded as a critical, strategic and enduring intangible asset for an organization. A favorable corporate image can be an effective form of differentiation and a source of competitive advantage ensuring long‐term success.

Practical implications

Managing complex customer relationships is a first step in creating better corporate image. Publicity tools need to be strategically deployed to create a stronger market presence. Financial performance should be appropriately communicated to instill confidence and loyalty in customers.

Originality/value

This is the first of such research conducted in Saudi Arabia. Customers' interpretation and perception of corporate image in the Saudi banking industry suggests that corporate branding is as important as corporate identity. As such, this paper reveals that complacency in corporate communication practices is the very reason why market presence fails to endure the test of time.

Details

Corporate Communications: An International Journal, vol. 15 no. 3
Type: Research Article
ISSN: 1356-3289

Keywords

Article
Publication date: 1 December 1998

Josée Bloemer, Ko de Ruyter and Pascal Peeters

This article investigates how image, perceived service quality and satisfaction determine loyalty in a retail bank setting at the global construct level, as well as the level of…

15268

Abstract

This article investigates how image, perceived service quality and satisfaction determine loyalty in a retail bank setting at the global construct level, as well as the level of construct dimensions. At the global level the results of a large‐scale empirical study reveal that image is indirectly related to bank loyalty via perceived quality. In turn, service quality is both directly and indirectly related to bank loyalty via satisfaction. The latter has a direct effect on bank loyalty. At the level of the dimensions underlying aforementioned constructs, it becomes clear that reliability (a quality dimension) and position in the market (an image dimension) are relatively important drivers of retail bank loyalty.

Details

International Journal of Bank Marketing, vol. 16 no. 7
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 16 September 2022

Siti Ngayesah Ab Hamid, Suharni Maulan and Wan Jamaliah Wan Jusoh

The purpose of this study is to empirically examine the antecedents and consequences of corporate brand image in the context of Islamic banks in Malaysia. The antecedents of…

1316

Abstract

Purpose

The purpose of this study is to empirically examine the antecedents and consequences of corporate brand image in the context of Islamic banks in Malaysia. The antecedents of corporate brand image are divided into three categories which are functional brand attribute, emotional brand attribute and spiritual brand attribute. The consequence of corporate brand image on the other hand is loyalty.

Design/methodology/approach

A self-administered survey was used to collect data from experienced Islamic banking customers. A total of 281 questionnaires were analysed using Partial Least Square-Structural Equation Modeling.

Findings

This study found a significant relationship between some aspects of the brand attributes and corporate brand image. Corporate brand image, in turn, influences customer loyalty.

Research limitations/implications

These findings contribute to the understanding that in the context of Islamic banks, the corporate brand image is not only influenced by the functional and emotional aspects, but also the spiritual aspect especially factors related to beliefs. Practically, this study provides insight to the management on the aspects valued by customers in regards to their bank, which could be used to guide Islamic bank positioning strategy.

Originality/value

The concept of corporate brand image has been explored from the perspective of functional and emotional aspects only. This study offers a new attribute influencing corporate brand image in the Islamic banking context, which is the spiritual brand attribute.

Details

Journal of Islamic Marketing, vol. 14 no. 10
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 1 August 2004

Carlos Flavián, Eduardo Torres and Miguel Guinalíu

The study and measurement of image especially in the Internet banking field has become an important tool to help the management of the banks operating on the Internet to make…

8581

Abstract

The study and measurement of image especially in the Internet banking field has become an important tool to help the management of the banks operating on the Internet to make decisions. As there are no previous scales in existence to enable the image of this type of bank to be measured, our paper is centered on developing and proposing a reliable and valid scale that enables us to measure the corporate image of a bank in the context of the Internet. The results obtained show that an Internet bank's image is a multidimensional construct composed of its reputation and security as perceived by the consumer, as well as of the services offered and access to them. These results provide a management tool to measure the Internet bank's image. Similarly, the new scale shows in detail which aspects need to be acted on in order to improve the bank's image with its clients.

Details

International Journal of Bank Marketing, vol. 22 no. 5
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 9 October 2019

Pınar Özkan, Seda Süer, İstem Köymen Keser and İpek Deveci Kocakoç

The purpose of this paper is to investigate the impact of customer satisfaction, service quality, the perceived value of services, corporate image and corporate reputation on…

13152

Abstract

Purpose

The purpose of this paper is to investigate the impact of customer satisfaction, service quality, the perceived value of services, corporate image and corporate reputation on customer loyalty and their relationship in the Turkish banking industry. Mediation effects of the perceived value and corporate image and reputation are also studied. Understanding the relationships between the determinants of customer loyalty toward the bank helps management to use corporate image and reputation more effectively in its strategy, thus enhancing the institution’s position in the minds of consumers.

Design/methodology/approach

A model is proposed to explore the relationships of service quality and customer satisfaction with a perceived value and their effect on transforming the corporate image and corporate reputation into the form of customer loyalty toward the bank. A survey is designed within this framework and SEM analysis is conducted in order to study the nature of relationships between variables of interest hypothesized to affect customer behavior and customer loyalty. Mediation tests for perceived value and corporate image and reputation are also conducted.

Findings

The findings of the survey indicate that corporate image and corporate reputation can be used as a common marketing benchmark to measure a bank’s performance. The results demonstrated that customers perceive quality and satisfaction effects loyalty through perceived value, image and reputation.

Research limitations/implications

The study was conducted in Izmir, the third biggest city of Turkey. The sample is composed of regular customers, and the sample size is enough for the study but more studies are needed to generalize the results.

Practical implications

The results provide information to bank managers to effectively assist them to offer appropriate customer service levels sustaining satisfaction, quality and value to the customers within the transactions.

Originality/value

The paper studies the determinants of customer loyalty in the Turkish banking industry and considers the effects of corporate image and corporate reputation as measured by customer satisfaction, service quality and perceived value, on customer loyalty toward banks in Turkey. This model is not studied in bank marketing in Turkey and also in the banking literature.

Details

International Journal of Bank Marketing, vol. 38 no. 2
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 5 August 2019

Tika Kartika, Achmad Firdaus and Mukhamad Najib

This study aims to investigate the drivers of loyalty in Indonesian Islamic banks, especially group of depositor vs financing customer and single vs dual customer.

1810

Abstract

Purpose

This study aims to investigate the drivers of loyalty in Indonesian Islamic banks, especially group of depositor vs financing customer and single vs dual customer.

Design/methodology/approach

The objectives of this study were the seven major commercial Indonesian Islamic banks using the purposive sampling technique. In total, 105 questionnaires were processed, consisting of questions regarding depositors, financing, single and dual customer. Structural equation modeling using partial least squares were the analysis methods used to test the hypothesis, while in-depth interviews were conducted with Islamic bank managers to validate the findings.

Findings

Image has a significant relationship with customer satisfaction, as well as trust. Similarly, customer satisfaction has a significant relationship with trust. Trust has a significant relationship with loyalty. For a financing customer, the image is very influential on customer trust. For a depositor customer, customer satisfaction is very influential on customer trust. For single customer, customer satisfaction has a stronger influence on the image, compared to dual customer.

Practical implications

Islamic banks need to maintain good image and service quality to create strong, reliable and long-term relationships with customers, more specifically, in terms of improvement and product innovation. A bank focuses on the micro or macro segment, as well as financing. Financing products should be referred to customers’ needs. Bank reputation can be done by strengthening branding and corporate culture in marketing strategy. Shariah compliance has the highest loading factor to trust customers. Indonesian Islamic banks need to maintain customer trust by sticking to Islamic principles and continuing to ensure that its products and services are in accordance with Islamic principles. In Indonesian Islamic banks, it is very important to keep the legal aspects in all of products and services. Deposit products and services of Islamic banks should be in line with the rules of the financial services authority and Bank of Indonesia culture. Bank efforts to strengthen reputation can be done by strengthening branding and corporate culture in marketing strategy, while increasing the attractiveness of the products by way of research and development (R&D) must endeavor to make products and services attractive in terms of both product characteristics and price. Furthermore, it is necessary to support a good marketing strategy to market their products.

Social implications

Research can be used more widely in determining public policy, by strengthening the marketing strategy and public education. Islamic banks can work together with local religious departments to maximize marketing strategies to educate and convince people to be active economically under Islamic sharia guidance. Islamic banks need to maintain customer trust by sticking to the principles of sharia and continuing to ensure that products and services conform to sharia principles. Islamic bank management can strengthen customer trust by having a good risk management system, so that customers feel secure with Islamic bank transactions. In addition, sharia banks as companies must demonstrate social responsibility by distributing ZIS managed from customers and implementing CSR as a form of awareness of the surrounding community.

Originality/value

The study revealed the factors that lead to loyalty on the financing, depositor and the single and dual customers. The study found that improvement and innovation, strategic and sustainability are new indicators used to build images of Islamic banks.

Details

Journal of Islamic Marketing, vol. 11 no. 4
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 12 June 2009

Rafael Bravo, Teresa Montaner and José M. Pina

The purpose of this paper is to analyse the corporate image of financial institutions and its impact on consumer behaviour. More specifically, it aims to focus on the differences…

4649

Abstract

Purpose

The purpose of this paper is to analyse the corporate image of financial institutions and its impact on consumer behaviour. More specifically, it aims to focus on the differences between customers and non‐customers of banking institutions.

Design/methodology/approach

Data were collected through five questionnaires involving five major Spanish commercial banks. The questionnaires were answered by 450 individuals and SEM methodology was used to test the hypotheses of the study.

Findings

Corporate image of commercial banks includes dimensions related to the services offered, accessibility, corporate social responsibility, global impression, location and personnel. Two alternative models were validated for customers and non‐customers to explain how corporate associations influence intention to use the bank's services. For the case of current customers, satisfaction is a key mediating variable.

Research limitations/implications

The study is focused on national commercial banks and corporate image of individuals. Different stakeholders like employees can hold a different corporate image. Moreover, the paper only considers intention to use as a dependant variable.

Practical implications

The effect of corporate associations on purchase intentions depends on the specific type of associations and may be mediated through satisfaction. Results thus indicate that firms have to use different marketing strategies when considering the individuals' previous experience.

Originality/value

The paper extends previous research by showing the specific effect of corporate associations on intention to use the bank's services. It proposes two alternative models for explaining responses of both customers and non‐customers.

Details

International Journal of Bank Marketing, vol. 27 no. 4
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 22 October 2019

Bedman Narteh and Mahama Braimah

Even though scholars have proposed multiple dimensions to measure corporate reputation, the relationship between these dimensions and service provider selection has received a…

1869

Abstract

Purpose

Even though scholars have proposed multiple dimensions to measure corporate reputation, the relationship between these dimensions and service provider selection has received a dearth of research. Moreover, the moderating role of brand image on this relationship has hardly been considered. The purpose of this paper is to fill these gaps in the literature.

Design/methodology/approach

The study employed a quantitative approach, collecting data from 540 retail bank customers using surveys. Results were analyzed using structural equation modelling in AMOS.

Findings

The study found out that emotional engagement, corporate performance, customer centricism and service quality directly predicted customer selection of retail banks in Ghana. The results further indicated that brand image moderates the relationship between social and ethical engagement, which was not directly significant and bank selection.

Practical implications

The findings of the study indicate that some of the dimensions of corporate reputation have a direct impact on bank selection by customers, and that brand image could also be used to improve social and ethical dimension of corporate reputation to ensure bank selection by retail customers. The study thus provides practical guidelines for managing corporate reputation to achieve retail bank selection in Ghana.

Originality/value

The paper provides support to some of the prior studies on corporate reputation in the retail banking sector. Thus, the study provides useful insights into how corporate reputation can be managed to ensure service provider selection by retail bank customers.

Details

International Journal of Retail & Distribution Management, vol. 48 no. 2
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 4 September 2017

Md Abu Saleh, Ali Quazi, Byron Keating and Sanjaya S. Gaur

Bank customers’ perceptions of service quality and service image of Islamic banks may differ from those of conventional banks. The purpose of this paper is to examine the…

2582

Abstract

Purpose

Bank customers’ perceptions of service quality and service image of Islamic banks may differ from those of conventional banks. The purpose of this paper is to examine the differing perceptions of customers of Islamic and conventional banking systems in an emerging market, which has rarely been addressed and adds to the body of knowledge on this topic. This study also re-examines the SERVQUAL model of customer banking services to measure their impact on customer satisfaction and loyalty.

Design/methodology/approach

The study uses responses from a randomly drawn sample of 229 customers from conventional banks and 225 customers from Islamic banks operating in Bangladesh using a structured questionnaire. SPSS and structural equation modeling techniques were employed as statistical tools for data analysis.

Findings

Overall, the examined service quality dimensions wield varying effects on client satisfaction mediated through the perceived image of banking services. Islamic bank customers’ perceptions of the level of reliability, responsiveness, security and reputation were significantly higher than those of conventional banks.

Research limitations/implications

This study enhances our understanding of how Islamic banking practices differ from those of conventional banking in terms of service quality and image-related factors. More specifically, the findings of this research explain consumers’ perceived assessment of satisfaction and loyalty in a comparative research setting.

Originality/value

No prior studies have addressed the impact of the individual service quality dimensions on image factors in the context of conventional and Islamic banking in an emerging market, Bangladesh.

Details

International Journal of Bank Marketing, vol. 35 no. 6
Type: Research Article
ISSN: 0265-2323

Keywords

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