The Impact of Brand Equity on Conversion Behavior in the Use of Personal Banking Services: Case Study of Commercial Banks in Vietnam

Abstract

The brand equity of banks plays a crucial role in determining customer behavior of using their services. The study aims to examine the impact of brand equity on conversion behavior in the use of personal banking services at commercial banks in Vietnam. The paper uses quantitative research methods, through linear SEM (Structural Equation Modelling) analysis, with survey data including 554 samples of individual customers of commercial banks. The study’s findings show that the bank’s brand equity has a negative impact on the behavior of individual customers. In the relationship between these two factors, competitive advertising effectiveness and loyalty of customers act as intermediary factors. On that basis, the study makes a number of recommendations to preclude customers leaving and minimize business losses caused by the conversion of customers’ banks. The findings of this study have shown the importance and impact of brand equity on conversion behavior in the use of personal customer services. These are meaningful contributions both theoretically and practically to help banks get a deeper insight into brand equity and the need to pay attention to building and developing sustainable brand equity for the bank, as well as an important basis for further research.