A Study of Relationship among Marketing Mix, Customer Satisfaction and Brand Loyalty in Vietnamese Banking System

Abstract

With the intense competition and increasing globalization in the financial markets, bank management must develop some strategies in order to compete successfully in the competitive retail-banking environment. The longer a bank can retain a customer, the greater revenue and cost saving from that customer. However, customers are also more prone to changing their banking when they can purchase nearly identical financial products provided by the other banks. In order to stay competitive, bank managers need to understand the factors that influence and determine customer’s bank. This research is conducted to find out the relationship among marketing mix, customer satisfaction, and brand loyalty of three banks in Viet Nam (Vietinbank, VPbank and SHB). Based on previous studies, we have already known that marketing mix (customer needs, cost, convenience, and communication), customer satisfaction and brand loyalty have influence together. The principal idea in this study aims to investigate the relationship between marketing mix, customer satisfaction and brand loyalty, analyze how they can affect together. With those results, the bank can apply strategies to improve the performance of their bank and keep their customers. This study was conducted a survey by giving the questionnaire to Vietnamese customers who are using services in three banks in Vietnam. The questionnaires include 18 items of marketing mix, 7 items of customer satisfaction and 8 items of brand loyalty. The data obtain through conducting a survey will be analyzed by various techniques such as descriptive analysis to provide the information regarding the respondent’s gender, age, education, and occupation of customers who use three banks in this study. Using Cronbach’s α, path analysis, t-test, variance (ANOVA) to examine the correlation between each variable and observe the different point of view related to the respondent’s demographic profile. The results shown that most of hypotheses are supported accepted the hypothesis. The findings from path analysis suggested that marketing mix was significant influence on customer satisfaction and thus marketing mix will lead to customer satisfaction. In addition, the results showed that the customer needs of marketing mix had the largest influence on customer satisfaction. Path analysis also posited customer satisfaction was positively influenced on brand loyalty. However, marketing mix had the indirect and positive impact on brand loyalty. In this study, managerial implication were provided to Management of three banks (VPbank, SHB and Vietinbank) in Ha Noi, Viet Nam with the tested model of marketing mix which has influences on customer satisfaction and brand loyalty. Also, limitations of the study were provided and the directions for future research were suggested for further study on this field of marketing mix (4 Cs), customer satisfaction and brand loyalty.