Correlates of customer loyalty to financial institutions: a case study

The purpose of this study is to investigate the relative efficacies of intrinsic and extrinsic cues as drivers of customer loyalty to financial institutions between male and female bank customers.

A large-scale survey of 872 customers of a national bank serves as the study setting.

Results showed that extrinsic cues were the more effective correlates of customer loyalty and that gender does not moderate the relationships between image cues and customer loyalty.

The cross-sectional nature of the current study does not allow causal inferences. Therefore, future studies should adopt longitudinal designs.

Results suggest that, although transmitting a favorable image through extrinsic cues is critical, nevertheless, intrinsic cues (interactions among customers and bank personnel) should not be ignored. To reinforce this not only among current customers but also among potential customers, banks should use advertisements featuring favorable testimonials.

Empirical research in the banking services literature pertaining to the efficacies of intrinsic and extrinsic cues in forming customer loyalty is scarce. This study fills in the void. Also, in determining if the relationships between image and customer loyalty vary by gender, the authors not only looked at male versus female differences on the basis of average construct scores but also examined the structural relationships among the constructs.