Determinants of Micro Enterprise Owners' Loyalty towards Their Favourite Banks

Jati Kasuma, Ting Su Ung, Agnes Kanyan, Thalany Kamri, Yusman Yacob
2016 Procedia - Social and Behavioral Sciences  
Banking is a service that lies in a very competitive industry in most developed and developing countries, with different bran ds competing in a scenario of increasing banking and credit penetration. In a business-to-professional setting for banking, the range of services that a client uses with a bank is very high compared to retail banking. Thus, this paper would like to examine th e loyalty of the micro-enterprise owners towards their favourite banks. Using both local and international banks
more » ... nternational banks in M alaysia as the focus of the study, an exploratory research was carried out to assess micro-enterprise owners' level of loyalty to their banks. Selfadministered questionnaires were collected from 356 banks' business customers of various conventional and Islamic banks. The findings from this research have shown that a bank's reputation, quality services as well as customer relationship have a dir ect relationship to micro-enterprise owners' loyalty. The micro-enterprise owners believed that as long as the bank provides good services, a good income is being generated through them with the security factor taken into consideration. This study's findings could provide important directions for the development of a holistic framework to explain the formation and structure of micr oenterprise owners' loyalty towards banking and financial services industries.
doi:10.1016/j.sbspro.2016.05.489 fatcat:kkuofrms2newfbhioxmv2wpnli