Investigating The Effect of Brand Credibility on Customer Loyalty in the Iranian Banking Industry

Subject Areas : Futurology

K.  Heidarzadeh ¹ (نویسنده مسئول یا طرف مکاتبه)
F.  Ghafari ² (ندارد)
S.  Farzaneh ³ (ندارد)

Received: 2008-09-27 Accepted : 2008-11-22 Published : 2011-03-21

Keywords: Brand Credibility, Customer loyalty, Satisfaction, commitment, Behavioral intentions,

Abstract :

Customer churn is an ever-growing issue in the relational services sector, where business modelsultimately depend upon long-term relationships with customers as the basis for profitability.Businesses in this sector tend to view satisfaction andservice quality as the key tools for increasing customer retention. The present study investigates therelations between brand credibility, satisfaction, loyalty commitment, continuance commitment, wordof-month recommendations and switching propensity. Our population includes industries andcompanies in five economic categories. We obtained a sample of 384 four shops located in theshipping centers of selected industries in Tehran. The data were from a questionnaire, and thehypotheses were tested using structural equation modeling. Our findings show that brand credibilityhas a positive impact on satisfaction, continuance commitment and loyalty commitment. Satisfactionenhances word-of-mouth recommendations and loyalty commitment. Continuance commitment has anegative impact on switching propensity. There is no significant relation between loyalty commitmentand word-of-mouth recommendations or switching propensity. Satisfaction does not have a negativeimpact on switching propensity.