Brand loyalty as a competitive advantage for South African banks

  • Received December 18, 2022;
    Accepted February 1, 2023;
    Published February 28, 2023
  • Author(s)
  • DOI
  • Article Info
    Volume 18 2023, Issue #1, pp. 103-115
  • Cited by
    2 articles

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This work is licensed under a Creative Commons Attribution 4.0 International License

This study investigates the role of brand loyalty in South African banking. More specifically, the study identifies brand loyalty factors in South Africa’s banking industry. Brand loyalty can significantly impact a bank’s competitiveness. Loyal customers do not switch banks and use more banking products; this earns a better income for a bank in the long run (such as home loans). The study’s primary aim is to identify factors of brand loyalty in South African banks. Data were gathered from South African banking customers using a Google Forms digitized format questionnaire with a 5-point Likert scale. More than 1,000 questionnaires were distributed, and 150 completed questionnaires were returned (representing a 15% response rate). The results show that the data are suitable for multivariate analysis. It has an adequate sample (Kaiser, Meyer and Olkin measure > 0.70), acceptable sphericity (p ≤ 0.05), and satisfactory reliability (α ≥ 0.70). The exploratory factor analysis identified four factors explaining a cumulative variance of 55%. These factors are: 1) customer service and satisfaction (34%); 2) negative publicity (7.5%); 3) regulatory compliance and trust (7.1%); and 4) trust and reputation (6.5%). South African bank managers can use the results to focus their brand loyalty strategies on their quest to be more competitive to face the strong competition in the banking industry.

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    • Table 1. Description and supporting sources of Khokhar’s brand loyalty antecedents
    • Table 2. Brand loyalty antecedents in banking
    • Table 3. Exploratory factor analysis
    • Conceptualization
      Christo Bisschoff, Dries Els
    • Formal Analysis
      Christo Bisschoff
    • Methodology
      Christo Bisschoff
    • Validation
      Christo Bisschoff
    • Writing – review & editing
      Christo Bisschoff
    • Project administration
      Dries Els
    • Visualization
      Dries Els
    • Writing – original draft
      Dries Els