The Need To Study The Loyalty Of Depositors At Vietnamese  Commercial Banks

The influence of corporate social responsibility on the loyalty of customers depositing money at Vietnamese commercial banks - 3

they will continue to be loyal to banking products for a long time (Pham Ngoc Thuy & Le Nguyen Hau, 2010; Sayani, 2015).

2.2.3.2 Customer's trust

Martínez and Bosque (2013) assert that trust is a prerequisite for creating and maintaining long-term relationships between businesses and customers, especially in the service industry. In the same opinion, Reichheld and Schefter (2000) also argue that in order to gain customer loyalty, businesses must first win their trust.

Trust is formed from two components: (1) trust comes from brand reputation (2) trust comes from the bank's interest (Sirdeshmukh et al., 2002). In the banking sector, a bank's reputation can be formed from a bank's infrastructure, the skills and knowledge of its bankers, and their ability to provide the information and services they need. Secondly, the trust comes from the bank's concern for customers and people around through customer care programs on Tet holidays, birthdays,...; membership card incentive programs, community support programs, ..

Trust is seen as the key to building relationships in the service industry, especially in banking. Loyal customers can become advocates for the bank and its products. Furthermore, loyal customers can become defenders of the bank and its products by giving public views and opinions that defend the bank and its products such as transfer information to other customers. Customers only become sustainable customers of the bank when they have a basis to believe that the bank will honor its own commitments and provide products and services that match their requirements over time. .

2.2.3.3 Customers' feelings

One of the things that drives customers to choose and connect with a certain product or service is emotion. The emotional connection between the bank and the customer is formed gradually. We live in an emotional world where feelings

Emotions influence our decisions (Levy & Hino, 2016). For this reason, marketers often try to create an emotional connection between brands and their customers.

Rai and Srivastava (2012) find emotion as the main driver of behaviour. Emotions of customers are directly related to repurchase intention. The positive emotions generated from the behavior of consuming the bank's products and services can make customers tend to continue to consume or consume more in the future.

2.2.3.4 Customer identification

Customer identification stems from consumers' psychological attachment and interest in businesses, which in turn will stimulate their loyalty (Perez et al., 2012). Empirical studies have demonstrated that through using a product or service and recommending it, customers reinforce their own unique personality, and thus identify many similarities between themselves and others. The higher the bank, the more loyal they are and more likely to establish a long-term relationship with the bank (Pérez and Bosque, 2015a).

2.3.4 The need to study the loyalty of depositors at Vietnamese commercial banks

Deposits are one of the products of capital mobilization activities at commercial banks. Deposits usually consist of two main components: current deposits and savings deposits. Fundraising activities, although not directly profitable for the bank, are very important activities. Without capital mobilization activities, commercial banks will not have enough capital to finance business activities. Customers' deposits are a stable source of capital mobilization, accounting for a large proportion of the total capital of commercial banks, so depositors become important customers for commercial banks.

Today most banks are so focused on attracting new customers that they even forget an equally important thing how to build and maintain the loyalty of existing customers, not to mention. Attracting new customers also costs more. Every customer has relationships

The social system should be sure that information about the bank's products will be mentioned at some point. In fact, if customers are not satisfied with the bank's products and services, they may complain to relatives such as family, friends, etc. about being affected or disadvantaged in the transaction. Therefore, when a bank does not satisfy customers, it not only loses that customer but also loses a lot of potential customers. Therefore, banks need to try to serve well from the beginning to create good sympathy with customers, turning them into positive propagandists. Customers are always the most effective and cheapest propagandists, but they can also become detrimental factors for the bank's business. Compared to new customers, old customers create more value for the bank. Loyal depositors not only increase the value of the bank, but can also make the cost of attracting new customers lower than those of the banks involved. At the same time, loyal depositors are the customers that are most difficult for competitors to attract, always sticking with the bank even in the most difficult times. Customers who are satisfied with the bank's products and services will share it with everyone, will talk about their good experiences and recommend people to use the bank's services. Those referrals are invaluable to the bank. Especially this is a great promotion channel that is free. Loyalty of depositing customers is considered as a major contributor to the bank's stable operation, increasing loyalty will help the bank develop more sustainably. Because of the above, building customer loyalty is a matter of concern for any bank. Banks that want to grow quickly need many new customers, but to survive and develop long-term, they need to have many loyal customers. From the benefits of customer loyalty, we It must be acknowledged that it is absolutely necessary for today's banks to build customer loyalty.

2.3 Review of studies on the relationship between corporate social responsibility and customer loyalty

2.3.1 Direct influence of CSR on customer loyalty.

Many studies in recent years have found the direct and indirect influence of corporate social responsibility on customer loyalty. A very few authors have tried to find out the direct influence of CSR on customer loyalty, but this relationship is generally less accepted. Some studies can be mentioned as the study of Choi & La (2013), this group of authors shows that customers will be more loyal to the bank if this bank performs CSR well even though the trust of the them for the product, the bank has lost. Chung et al (2015) also conducted a study with similar results, that is, CSR will directly positively affect customer loyalty. This group of authors uses a CSR scale including economic responsibility, legal responsibility, charitable responsibility, and ethical responsibility. However, the number of studies approaching this direction is very small, making it difficult to find the basis for making research hypotheses. The second approach is the approach through mediating factors to find indirect influence studied by more scholars.

2.3.2 Indirect influence of CSR on customer loyalty

A few other studies combine to find out the direct and indirect effects of CSR on customer loyalty. However, the results of these studies suggest that a direct relationship is hardly acceptable. Much of this influence is detected through mediating factors. These factors are both a consequence of corporate social responsibility and an antecedent affecting customer loyalty. This is a more popular research direction to determine the influence of CSR on customer loyalty, so there are many studies so the ability to compare and draw experience will be closer. Therefore, the author chooses this direction to approach the research. That is, corporate social responsibility affects loyalty indirectly, through intermediary factors. In this study,

on four mediating factors: customer trust, customer satisfaction, customer emotion, customer identity. These four factors are directly related to customers and are completely suitable for customer-oriented CSR research.

CORPORATE SOCIAL RESPONSIBILITIES

Customer trust Customer satisfaction Customer identification Customer feelings

CUSTOMERS' Loyalty

Figure 2.2 The relationship between CSR and KH's loyalty

Salmones et al. (2009) conducted research to analyze the influence of financial institution's ethical responsibility and charitable responsibility on customer behavior, specifically customer loyalty. Some of the intermediate factors considered in this process include customer satisfaction, customer identification, customer trust. The results of linear structural analysis show that customer satisfaction, customer identification, customer trust directly affect loyalty. Ethical social responsibility affects indirectly through trust, charitable responsibility has an indirect positive effect through customer identification.

Marin et al. (2009) conducted a study to determine the impact of CSR on customer loyalty in the banking sector through a number of mediating factors such as bank reputation, customer identification. – banks…Data was collected through phone interviews with 400 customers from banks in Spain. The results show that CSR has a positive effect on the bank's reputation and customer identification, in which the impact on reputation is the most significant. Hypotheses about the consequences of CSR on customer loyalty are also accepted. In which, customer identification has a great influence on customer loyalty, customer identity and bank reputation explain 67% of the variation of customer loyalty.

In 2013, Martínez and Bosque conducted a study to determine the influence of CSR on customer loyalty in the hotel sector in Spain. Some of the intermediate factors considered include: customer trust, customer satisfaction, customer identification. The study carried out a survey of 400 students at the University of Cantabria. Through variable-total correlation analysis, exploratory factor analysis (EFA), confirmatory factor analysis (CFA) as well as SEM model to test the research hypotheses, the author concludes that the Customer success is affected indirectly through the consequences of corporate social responsibility such as customer trust, customer satisfaction, customer identification.

Research by Pérez and Bosque (2015a), studying the customer's response to CSR of banks in Spain. The author has conducted a survey for 1124 customers who are using the services of savings banks, and commercial banks in the North of Spain. Through linear structural analysis (SEM), the results demonstrate that CSR awareness has a positive impact on customer identification with the bank, emotions, and customer satisfaction. Customer identification and customer satisfaction will positively impact loyalty. The loyalty scale is measured according to the questions of behavioral loyalty and attitudinal loyalty from Oliver (1999).

In Vietnam, there are also some studies on the influence of CSR on customer loyalty. Some studies can be considered such as the study of Nguyen Tinh (2013), Nguyen Hong Ha (2016). Although these studies were done for other businesses. However, these studies still apply the same theories on CSR and customer loyalty, so the author considers this to be a relevant document for this study.

Nguyen Tinh (2013) measures the influence of social responsibility on brand trust and repurchase intention of customers using products of Vinamilk and Cocacola in Vietnam. The author used a 5-component social responsibility scale including ethics, philanthropy, economic, legal, and environmental.

and examine the effect of each of these components on brand trust and purchase intention. Analysis of the results from a survey of 438 customers who regularly use products of Vinamilk and Coca-Cola in Vietnam shows that the components of economic responsibility, ethical responsibility, charity responsibility, and environmental responsibility are affect brand trust; and economic, ethical, and philanthropic responsibility factors affecting purchase intention. Research also shows that brand trust has a very strong impact on customers' purchase intention. Corporate social responsibility is not a waste of money, but this is a beneficial investment for the business. The good implementation of corporate social responsibility will build trust with customers, enhance brand value,

Nguyen Hong Ha (2016) studied the influence of corporate social responsibility on customer loyalty. Research in the feed industry in the North of Vietnam by conducting a formal survey of 238 customers who are purchasing feed products. To test the hypotheses, the author uses a linear structural analysis method of 1 independent variable (customer loyalty) and 5 dependent variables (Corporate CSR, satisfaction, reputation, personal relationships). The results show that CSR will positively affect customer satisfaction, reputation and personal relationship with the company. And these variables have a positive impact on customer loyalty. The study hypothesized about the direct influence of CSR on loyalty, but the experimental results are not accepted.

Table 2.4 Summary of some related studies

Author

Fields

Hypothesis

Research results

Marin and

Ruiz (2007)

Echo

row

CSR  Identification  _

Accept

hypothesis

Salmones (2009)

Bank

Corporate Social Responsibility CSR   Identification   Customer  Satisfaction (H2) Customer Identification   Customer Loyalty

Customer   satisfaction Loyalty

Accept

the fake

H2 exception theory

Maybe you are interested!

The influence of corporate social responsibility on the loyalty of customers depositing money at Vietnamese commercial banks - 3

   

FIRE

 

Salmones et al (2009)

Finance

Ethical   responsibility Customer satisfaction Ethical responsibility  Customer  trust Charitable  responsibility Customer  identification

Customer identification Customer  loyalty  Customer trust   Customer loyalty

Accept

the fake

exception  theory

Moral  responsibility  Satisfaction of

FIRE

Curras &

associates (2009)

Insurance

Customer identification  Repurchase  intention

Accept hypothesis

Marin and

associates (2009)

Bank

CSR  Identification  _

Customer identification  Loyalty  KH

Accept hypothesis

Carvalho and

associates (2010)

Footwear

CSR    Customer satisfaction

Customer satisfaction  Repurchase  intention

Accept hypothesis

McDonald and Lai (2011)

Bank

Corporate Social Responsibility Loyalty  Attitude CSR  Loyal  Behavior

Accept

the fake

theory

He and Li (2011)

Bank

CSR  Identifying  CSR  Customer  satisfaction

Customer identification   Customer satisfaction

Accept

the fake

theory

Mandhachitar a and

Poolthong (2011)

Bank

CSR  Behavioral loyalty  CSR  Attitude  loyalty

Accept

the fake

theory

Matute- Vallejo and

associates (2011)

Bank

CSR    Customer satisfaction

 Customer Satisfaction Customer  Loyalty

Accept

the fake

theory

Hsu (2012)

Insurance

CSR    Customer satisfaction

Accept

the fake

theory

Vlachos (2012)

Retail

CSR  KHI  's feelings

 Customer 's Emotions Customer Loyalty

Accept

the fake

theory

Lii and Lee (2012)

Telephone

Corporate Social Responsibility  Brand   Attitude  Corporate Social Responsibility Definitive  Identity

Brand Attitudes  Buying behavior Customer identification Purchasing  behavior

Accept

the fake

theory

Martinez and

Guest

CSR  Identification  _

Accept

Bosque (2013)

hotel

Corporate Social Responsibility  Corporate  Social Responsibility  Customer Confidence Customer   Satisfaction Customer Identification  Customer Satisfaction

Customer trust Customer  satisfaction  Customer confidence  Customer  identification

Customer identification Customer loyalty  Customer trust   Customer loyalty

Customer satisfaction  Loyalty  KH

the fake

Exclusion theory  Customer's beliefs   KHI  identification

Choi and La (2013)

Retail

CSR  KH  's belief

 Customer's trust KH's  loyalty

Accept

the fake

theory

Nguyen Tinh (2013)

Food

CSR Brand trust CSR  Repurchase  intention

Brand trust  Repurchase  intention

Accept

the fake

theory

Pérez and Bosque (2015a)

Bank

CSR CSR   Identification   Customer Satisfaction  Customer Identification  Customer  Satisfaction

Customer identification customer loyalty  Customer satisfaction   customer loyalty

Accept

the fake

theory

Pérez and Bosque (2015b)

Bank

CSR  Corporate Social Responsibility  Plan Identification CSR  Customer  Satisfaction   Customer Emotions

Customer identification Customer satisfaction  Customer identification Attitude  loyalty

 Customer Satisfaction Customer  Loyalty

Accept

the fake

theory

Nguyen Hong Ha (2016)

Animal feed

Corporate Social Responsibility  CSR   Customer  Satisfaction Corporate Social Responsibility  Corporate  Reputation  Personal Relationship

Company Reputation  Customer Loyalty Customer Satisfaction Customer Loyalty

Personal relationship Loyalty  KH

Accept

the fake

theory

Rivera and

associates (2016)

The media

CSR    Customer satisfaction

Accept

the fake

theory

Source: Author's compilation

2.4 Research model and hypothesis

2.4.1 Proposed research model

From the results of synthesizing relevant theories and inheriting research results from previous studies as presented in Table 2.4. The author proposes an analytical framework for this study as shown in Figure 2.3. Accordingly, a bank's CSR will have four consequences: customer satisfaction, emotions, trust, customer identification, and customer satisfaction.

row. And these consequences will be the premise factors affecting the loyalty of customers depositing money at commercial banks in the city. Ho Chi Minh.

Definitive identification

H3

H9

KHI'S Emotions

H4

H6

H10

H5

H13

CSR

H7

H11

H8

KHI's Loyalty

H1

KHI's belief

H12

H2

KHI's satisfaction

Figure 2.3 Analytical framework of the topic

2.4.2 Research hypothesis

2.4.2.1 Effect of CSR on customer satisfaction and loyalty

From the concepts summarized in Chapter 1, it shows that customer satisfaction is a consequence of CSR. In terms of previous studies:

Martínez and Bosque (2013) argue that there are three reasons for the existence of the so-called “corporate social responsibility influence – customer satisfaction”. Firstly,  the potential customers of the business can be people who are not only interested in the economic performance of the business but also in the overall (including the impact of the business on society and the community). . Therefore, customers may be more satisfied if banks provide products that are themselves responsible to the community and society. Second,  awareness is the premise to promote customer satisfaction. On the other hand, a business that implements CSR well is easy to leave good perceptions in customers, thus leading to satisfaction. Tuesday, CSR initiatives are an important factor in identifying your customers, and these customers are more likely to be satisfied with your services.

And in the 2013 study, Martínez and Bosque also confirmed the positive influence of CSR on customer satisfaction.

Some other studies in the banking sector by Salmones (2009) et al., He and Li (2011), Matute-Vallejo et al. (2011), Pérez and Bosque (2015a,b) also confirmed the results. similar to Martínez and Bosque (2013). And it is this customer satisfaction that will be the premise that positively affects customer loyalty (Matute-Vallejo et al. (2011); Martínez and Bosque (2013); Pérez Bosque (2015a); Nguyen Hong Ha (2016); Rivera et al (2016)). From there, the author proposes the hypothesis:

H1: The bank's CSR has a positive impact on customer satisfaction H2: Customer satisfaction has a positive effect on customer loyalty.

2.4.2.2 Influence of CSR on customer identification, customer loyalty.

In the analysis of Martínez and Bosque (2013), CSR initiatives are an important factor in identifying customers of enterprises. This is consistent with theories of social identity, the theory of consequences of corporate social responsibility. Some studies by Rives et al. (2009), Salmones et al. (2009), Martínez & Bosque (2013), Pérez & Bosque (2015a) have tested the positive impact of CSR on customer identification. On the other hand, also in these studies, the authors assert that when customers feel many similarities between customers and banks, they will become more attached, that is, they will be more loyal to the bank. than. From the above bases, hypothesis H3, H4 is proposed:

H3: The bank's CSR has a positive impact on customer identification.

H4: Customer identification has a positive impact on customer loyalty.

2.4.2.3 The influence of CSR on customers' emotions and loyalty.

There are not too many studies to find out the influence of CSR on customers' emotions. However, a number of studies have been conducted that have also examined

demonstrate this positive relationship. Vlachos (2012) confirmed that CSR achievements can positively affect customer loyalty through emotional states. Vlachos views the bank's CSR as a strategic marketing tool that can be used to create emotional relationships with the bank's customers. Similarly, Pérez & Bosque (2015a) determined that commercial bank customers have positive feelings about the bank's CSR, these positive emotions will promote loyalty attitude towards the bank. From the above analysis, the author proposes the following hypothesis:

H5: The bank's CSR has a positive impact on customers' emotions. H6: Customer emotions positively affect customer loyalty.

2.4.2.4 The influence of CSR on the trust and loyalty of customers.

La & Choi (2013) indicate that one of the leading issues in corporate ethics concerns the need to regain public trust. The ethical standards associated with providing a product or service are the basis of trust, help build reputation, and support the delivery of quality services. La & Choi (2013) also confirmed the positive influence of CSR on customer's trust. This trust will have a strong impact on customer loyalty. This conclusion is completely consistent with previous studies of Salmones et al. (2009), Sarwar et al. (2012), Martínez and Bosque (2013). Thus, there is enough basis for the author to hypothesize:

H7: The bank's CSR has a positive effect on customer trust. H8: Customer trust positively affects customer loyalty.

2.4.2.5 The relationship between trust, emotion, customer satisfaction and customer identity.

Studies analyzing the influence of CSR on customer loyalty through a number of corollary factors also find out the mutual influence between those consequences.

According to perceived-expectation theory, customers are more likely to be satisfied when the company's actual results exceed or meet previous expectations. Customer identification makes it easier for businesses to meet customer needs (He and Li, 2011). Therefore, when the level of customer identification is higher, customers are likely to have more positive emotions and feel more satisfied, because it creates a bond between the customer and the bank. Research by Pérez and Bosque (2015b) carried out for 648 customers from 14 deposit banks in Spain shows that, good customer identification has a positive influence on customer satisfaction, emotions, in which affect on emotions is stronger. Pérez and Bosque's research has not yet concluded the effect of emotions on customer satisfaction. However, This hypothesis has been accepted by Levy and Hino (2016), that is, there exists a positive influence of customer emotions on customer satisfaction. Inheriting the above research results, the author put forward the following hypotheses:

H9: Customer identification has a positive impact on customer emotions. H10: Customer identification has a positive impact on customer satisfaction.

H11: Customer emotions have a positive impact on customer satisfaction.

On the other hand, Levy and Hino (2016) also examined the influence of customers' beliefs on emotions and customer satisfaction. The results show that when customers trust the bank more, they feel more satisfied, that is, there is a positive effect of trust on satisfaction. Besides, the results also show that trust also affects positive emotions with a very high level of significance. This is completely consistent with the theory as well as the research results of Zhu & Chen (2012), Martínez and Bosque (2013), Marinkovic & Obradovic (2015). From there, the author hypothesizes:

H12: Customer trust has a positive impact on customer satisfaction. H13: Customer trust has a positive impact on customer emotions.

CONCLUSION CHAPTER 2

In chapter 2, the author presents the concepts of corporate social responsibility, its approach as well as its consequences, the concept of loyalty, the influencing factors as well as the relationship between CSR with customer loyalty. On the basis of inheriting the results of many previous studies, the author argues and proposes a research model of the influence of CSR on customer loyalty through a number of consequences such as trust, emotion, satisfaction. customer satisfaction and customer identification. At the same time, the author gives 13 initial hypotheses, which will be tested in the following chapters.

CHAPTER 3: THE SITUATION OF DEPOSIT MOBILE ACTIVITIES AND CORPORATE SOCIAL RESPONSIBILITIES OF VIETNAM COMMERCIAL BANKERS.

3.1 Operational network of Vietnamese commercial banks in Ho Chi Minh City. Ho Chi Minh

Currently, Ho Chi Minh City has a full presence of all commercial banks operating in Vietnam, including state-owned commercial banks, joint-stock commercial banks, commercial banks with 100% foreign capital, joint venture banks and branches and representative offices of foreign banks. As of December 31, 2016, if we consider only Vietnamese commercial banks, in the area of ​​​​Ho Chi Minh City. Ho Chi Minh City has 35 commercial banks in operation, of which 11 banks have their headquarters in Ho Chi Minh City. Ho Chi Minh City includes Sacombank, ACB, Eximbank, Dong A, Ho Chi Minh City Development, Orient, Saigon Industry and Trade, An Binh, Ban Viet, Nam A, SCB.

Table 3.1 Operational network of Vietnamese commercial banks in Ho Chi Minh City

TT

BANK NAME

Branch/Transaction Office

Room/Transaction point

 

Head Office in City. Ho Chi Minh

 

first

Saigon Thuong Tin (Sacombank)

thirty first

108

2

Asia (ACB)

30

152

3

East Asia (EAB)

17

100

4

Saigon (SCB)

16

69

5

HCM Development (HDBank)

11

50

6

Import-Export (Eximbank)

11

16

7

Orient (OCB)

ten

28

8

Saigon Industry and Trade (SGB)

7

23

9

An Binh (ABB)

5

60

ten

Vietnamese version (VietCapital)

4

13

11

South Asia (NamABank)

2

36

 

Head office in another Province/City

 

twelfth

Agribank

48

143

13

Investment and Development (BIDV)

36

90

14

Industry and Trade (Vietinbank)

23

105

16

Army (MB)

14

28

15

Vietnam Foreign Trade (VCB)

twelfth

75

17

Techcombank (Techcombank)

ten

90

22

Maritime (MSB)

ten

48

20

VN Prosperity (VPBank)

9

42

 

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Date published: 09/04/2022
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