An empirical investigation on factors influencing on brand loyalty

Abstract

Building a competitive brand is a key success specially in banking industry. This paper presents a study to investigate important factors influencing brand loyalty among special customers in one of biggest Iranian banks in Iran. The study designs a questionnaire and distributes it among 249 regular customers who are special customers in various banks in city of Tehran, Iran. The study uses structural equation modeling to find important factors and they are ranked using TOPSIS method. In our study, Cronbach alpha has been calculated as 0.815 and there are eight influencing factors including flexibility in offering various services, building good relationship with customers, technology and processes, customers’ experiences, brand identity in continuous advertisement, organization size, customer perception on reputation of brand and customers’ tendency to build better brand loyalty. In our survey, flexibility in offering various services received the highest rank followed by building good relationship with customers.

Keywords

• Factor analysis
• Brand loyalty
• Banking industry