The Causal Relationship Model of Factors Affecting Brand Equity in Thai Bank Sector

Abstract

Purpose: This study investigates the effects of self-service technology and service qualities on the brand equity of retail bank customers living in six Bangkok districts, Thailand. Theoretical framework: Recent research on the effects of self-service technology and onsite service quality on brand equity, particularly in the banking industry, has been limited. Even though research has been conducted on the effects of these technologies and service qualities, the majority of prior research has focused on the effects of these precedents on dependent variables, such as customer satisfaction (Raheman, 2017) and customer loyalty (Miguel-Dávila et al., 2010), which are indirectly related to brand equity. Moreover, it is frequently studied outside the banking industry (ArulPrasad, 2021). The results of these previous studies frequently corroborate the positive effects of self-service technology and onsite service quality on such dependent variables, suggesting that these precedents may have an effect on brand equity in the banking sector. Design/Methodology/Approach: We analyzed the 450 valid questionnaires collected from retail bank customers living in six Bangkok districts using EFA and SEM. Findings: Improving the quality of self-service technology and on-site service can increase brand equity. Research, Practical & Social implications: Top bank managers need to focus on investing in service technology and training bank officers on customer service skills. Qualitative research should be conducted to better understand the relationships between self-service technology quality, on-site service quality, and brand equity. Moreover, the model should be extended to consider factors that act as moderators or mediators. Originality/Value: Investing in self-service technologies and bank officers' service capabilities can enhance the brand equity of the banking sector.