Investigating Determinants of Brand Loyalty in Banking Industry: Empirical Evidences from Pakistan

Abstract

Brand loyalty plays a vital role in banking industry of a modern era. It has become challenging task for organization to retain a customer and to make him/her a loyal customer. Banking industry in Pakistan has proved itself as a competitive and service oriented in recent years. This study is conducted to assess the impacts of service quality, trust, reputation, promotion and bank environment on brand loyalty in Pakistani banking industry. 196 respondents were selected to fill the questionnaire. Descriptive statistics, regression analysis, independent sample t-test statistical tools of SPSS 20 were used to evaluate the relationship. Service Quality, Trust and Reputation showed the significant and positive impact on brand loyalty, whereas Promotion and Bank Environment proved insignificant on brand loyalty. Service Quality showed the highest impact on brand loyalty, whereas Reputation and Trust of a bank resulted as second and third most important factors in assessing brand loyalty of a bank in Pakistan.