Consumers’ awareness and loyalty in Indonesia banking sector: does emotional bonding effect matters?

Abstract

Purpose This study aims to examine the relationship between emotional bonding (e.g. brand love, brand commitment and brand trust) and consumers’ awareness and consumers loyalty to conventional and Islamic banking products in Indonesia. Design/methodology/approach The sample consists of 585 Muslim and bank consumers obtained through a survey study and using structural equation modeling to test the research hypotheses. Findings The empirical results indicate that brand love, commitment and trust have significant and positive effects on consumers’ awareness and loyalty. Furthermore, as the mediator variables, consumers’ awareness partially mediates the relationship between emotional bonding and consumers’ loyalty. Research limitations/implications This study was validated by Indonesian Muslims; therefore, future study is needed to validate across the region and sector. Practical implications This study enlightened the bank managers from a marketing and psychological context. The bank managers need to enhance the control and promote their brand and products to improve their relationship and consumers. Originality/value This study provided the Muslim consumers' decision-making process by developing and testing a model of emotional bonding and consumers’ perspective toward bank products.

The Role of Brand Love, Trust, and Commitment in Fostering Consumer Satisfaction and Loyalty

“…This is as a result of the business offering value and a remedy. This result opposite with prior studies by Karim et al, (2022) and Suhartanto et al, (2019) who found that brand play important role on consumers' loyalty. Table 4 shows the results of the research hypotheses.…”

“…Moreover, customers' brand loyalty significantly and favourably influences the relationship between consumer pleasure and loyalty. This result confir preliminary studies which concluded consumers' brand awareness and attitude play important role in mediating the relationship between consumers' satisfaction and loyalty (Karim et al, 2022;Mursid & Wu, 2022;Othman et al, 2021;Suhan et al, 2022). It meas that consumers' emotional bonding play important role to keep company going concern and competitive advantage.…”

“…This condition is a big challenge for shipping services that existed for a long-time including company which provided shipping service. Consumers' retention depends on brand love, devotion, and trust in addition to happiness and loyalty (Karim et al, 2022;Suhan et al, 2022).…”

“…Hence, study in private and public companies in developing country such as Indonesia is worthy. It has the ability to develop into a creative business in order to fulfil its vital role as a means of good delivery and to live up to community expectations (Karim et al, 2022).…”

“…In addition to making purchases across all product and service categories (Ghorbanzadeh & Rahehagh, 2021;Mursid & Wu, 2022). Yet, a person who continues to use a product could not be loyal because they lack other moving options, for example, because of the cost of moving, the suitability of the services, the product quality, or even because they worry about losing out on deals or discounts (Karim et al, 2022). Emotional ties seem to have an impact on consumers' resistance to switching brands.…”