Predicting South African consumers’ intention to continue using their preferred retail bank’s services: A model validation
Objective: The objective of the article is to validate a model of the factors, namely ethical responsibility, social responsibility, bank trust, attitude, and brand loyalty, that influence the behavioural intentions of consumers to continue using banking services. Research Design &...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Cracow University of Economics
2024-12-01
|
| Series: | Entrepreneurial Business and Economics Review |
| Subjects: | |
| Online Access: | https://eber.uek.krakow.pl/eber/article/view/2856 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849762179741384704 |
|---|---|
| author | Marko van Deventer Kirsty-Lee Sharp Rafał Żelazny Sebastian Kot |
| author_facet | Marko van Deventer Kirsty-Lee Sharp Rafał Żelazny Sebastian Kot |
| author_sort | Marko van Deventer |
| collection | DOAJ |
| description |
Objective: The objective of the article is to validate a model of the factors, namely ethical responsibility, social responsibility, bank trust, attitude, and brand loyalty, that influence the behavioural intentions of consumers to continue using banking services.
Research Design & Methods: This study focuses on predicting South African consumers’ intention to continue using their preferred retail bank’s services through a validated measurement model. Using confirmatory factor analysis, reliability and validity analyses, correlation assessments and collinearity diagnostics, the study examines a dataset of 500 participants sourced from a reputable global market research database. The measurement model comprises six latent factors, namely ethical responsibility, social responsibility, bank trust, attitude, brand loyalty and behavioural intention.
Findings: Results indicate strong internal consistency (Cronbach’s alpha and CR > 0.85) and convergent validity (AVE > 0.50) across all factors. The model also exhibits good fit indices (PCMIN/DF = 2.610, IFI = 0.943, TLI = 0.937, CFI = 0.943, SRMR = 0.042, RMSEA = 0.057), confirming its psychometric properties.
Implications & Recommendations: This research highlights the interactions among the studied factors and their implications for customer retention strategies, providing actionable insights for banking professionals and policymakers. Future research should explore the relationships between these latent factors to enhance customer retention and satisfaction strategies in the banking industry.
Contribution & Value Added: Brand loyalty remains one of the biggest challenges facing banks today. As such, there is a need to investigate the factors that influence consumers’ intention to continue using their preferred retail bank’s services to build brand loyalty. This study fills a gap in existing literature regarding banking behaviours in a unique socio-economic South African context.
|
| format | Article |
| id | doaj-art-3db2737816d043f3a30876598bb2355f |
| institution | DOAJ |
| issn | 2353-8821 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Cracow University of Economics |
| record_format | Article |
| series | Entrepreneurial Business and Economics Review |
| spelling | doaj-art-3db2737816d043f3a30876598bb2355f2025-08-20T03:05:49ZengCracow University of EconomicsEntrepreneurial Business and Economics Review2353-88212024-12-0112410.15678/EBER.2024.120411Predicting South African consumers’ intention to continue using their preferred retail bank’s services: A model validationMarko van Deventer0Kirsty-Lee Sharp1Rafał Żelazny2https://orcid.org/0000-0002-4710-3483Sebastian Kot3North-West University, Faculty of Economics and Management Sciences, Workwell, South AfricaNorth-West University, Faculty of Economics and Management Sciences, Workwell, South AfricaUniversity of Economics in Katowice, Department of Economics, Poland.Czestochowa University of Technology Objective: The objective of the article is to validate a model of the factors, namely ethical responsibility, social responsibility, bank trust, attitude, and brand loyalty, that influence the behavioural intentions of consumers to continue using banking services. Research Design & Methods: This study focuses on predicting South African consumers’ intention to continue using their preferred retail bank’s services through a validated measurement model. Using confirmatory factor analysis, reliability and validity analyses, correlation assessments and collinearity diagnostics, the study examines a dataset of 500 participants sourced from a reputable global market research database. The measurement model comprises six latent factors, namely ethical responsibility, social responsibility, bank trust, attitude, brand loyalty and behavioural intention. Findings: Results indicate strong internal consistency (Cronbach’s alpha and CR > 0.85) and convergent validity (AVE > 0.50) across all factors. The model also exhibits good fit indices (PCMIN/DF = 2.610, IFI = 0.943, TLI = 0.937, CFI = 0.943, SRMR = 0.042, RMSEA = 0.057), confirming its psychometric properties. Implications & Recommendations: This research highlights the interactions among the studied factors and their implications for customer retention strategies, providing actionable insights for banking professionals and policymakers. Future research should explore the relationships between these latent factors to enhance customer retention and satisfaction strategies in the banking industry. Contribution & Value Added: Brand loyalty remains one of the biggest challenges facing banks today. As such, there is a need to investigate the factors that influence consumers’ intention to continue using their preferred retail bank’s services to build brand loyalty. This study fills a gap in existing literature regarding banking behaviours in a unique socio-economic South African context. https://eber.uek.krakow.pl/eber/article/view/2856confirmatory factor analysismeasurement modelvalidation reliabilitymodel fit |
| spellingShingle | Marko van Deventer Kirsty-Lee Sharp Rafał Żelazny Sebastian Kot Predicting South African consumers’ intention to continue using their preferred retail bank’s services: A model validation Entrepreneurial Business and Economics Review confirmatory factor analysis measurement model validation reliability model fit |
| title | Predicting South African consumers’ intention to continue using their preferred retail bank’s services: A model validation |
| title_full | Predicting South African consumers’ intention to continue using their preferred retail bank’s services: A model validation |
| title_fullStr | Predicting South African consumers’ intention to continue using their preferred retail bank’s services: A model validation |
| title_full_unstemmed | Predicting South African consumers’ intention to continue using their preferred retail bank’s services: A model validation |
| title_short | Predicting South African consumers’ intention to continue using their preferred retail bank’s services: A model validation |
| title_sort | predicting south african consumers intention to continue using their preferred retail bank s services a model validation |
| topic | confirmatory factor analysis measurement model validation reliability model fit |
| url | https://eber.uek.krakow.pl/eber/article/view/2856 |
| work_keys_str_mv | AT markovandeventer predictingsouthafricanconsumersintentiontocontinueusingtheirpreferredretailbanksservicesamodelvalidation AT kirstyleesharp predictingsouthafricanconsumersintentiontocontinueusingtheirpreferredretailbanksservicesamodelvalidation AT rafałzelazny predictingsouthafricanconsumersintentiontocontinueusingtheirpreferredretailbanksservicesamodelvalidation AT sebastiankot predictingsouthafricanconsumersintentiontocontinueusingtheirpreferredretailbanksservicesamodelvalidation |