A Model to Measure the Brand Loyalty of Financial Institutions

Abstract

This article reports on research that aims to adapt a theoretical model that measures brand loyalty for application in the financial industry. The study employs a theoretical model (originally developed and validated for the fast moving consumer goods industry) in the South African banking industry to measure brand loyalty. As a result, it is imperative to validate the model and adapt it for the banking industry. The validation process aimed to validate the items that measure each of the brand loyalty influences; assess the sampling adequacy of each of the influences; test the applicability of the data for multivariate statistical analysis (such as an exploratory factor analysis); determine the importance of each of the brand loyalty influences; and test the reliability of each of the brand loyalty influences in the model. All of these objectives were met. This culminated in the final result, namely that the model to measure brand loyalty, within its limitations, is a valid and reliable model that can be used to measure brand loyalty. DOI: 10.5901/mjss.2014.v5n23p302