A contingency analysis of brand reputation and loyalty in the banking sector

This paper investigates the impact of brand reputation (brand personality, brand identity and brand image) on customer loyalty in the banking sector. More importantly, it explores the moderating roles of trust and perceived switching costs in the hypothesized relationships. Using a positivistic research approach, a sample of 595 bank customers were sampled and surveyed. A 66% response rate was realized and the data analyzed using descriptive statistics, multiple regression and exploratory factor analysis. It emerged that brand personality exerts a significant positive effect on customer loyalty. Moreover, both trust and perceived switching cost significantly moderated the relationship between brand personality, brand identity and customer loyalty. To achieve customer loyalty for banking industry operators, much emphasis should be placed on building a strong brand personality. Further, organizations should address issues connected to perceived switching costs as it effectively combines brand personality, brand identity and brand image to contribute to customer loyalty.