Effects of commitment on intentional loyalty at the person-to-person and person-to-firm levels

Strandberg, Christer; Wahlberg, Olof

doi:10.1057/fsm.2015.13

Cited by 14 publications

(14 citation statements)

References 54 publications

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“…According to Larsson et al (2016), it is also likely that a bank-based financial system produces more diversified banks than does a market-based financial system. The relationship orientation, which makes customers loyal to their banks (Strandberg et al , 2015), seems to affect the profitability of the four banks dominating the Swedish market and the smaller banks in a similar way.…”

Section: Concluding Discussionmentioning

confidence: 99%

“…In such a system, banks are expected to ensure the availability of venture capital, and commercial banks have traditionally dominated the financing of the business community in Sweden (Larsson and Wallerstedt, 2015). The Swedish banking system is also described as relation oriented in that, for example, lending conditions are negotiable and customers are loyal to their banks (Strandberg et al , 2015).…”

Section: The Swedish Banking Contextmentioning

confidence: 99%

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Organizational-level profitability determinants in commercial banks: Swedish evidence

Yazdanfar

2018

JES

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Purpose The purpose of this paper is to examine organizational-level determinants of commercial bank profitability. Design/methodology/approach Using bank-level longitudinal panel data for the 2005–2014 period, this study conducts univariate and multivariate statistical analyses, i.e. ordinary least squares (OLS), fixed-effects and feasible generalized least-squares (FGLS) regressions, to analyze profitability variables in Swedish commercial banks. Findings The findings indicate that the organizational-level determinants growth, lagged profitability and capital adequacy are positively related to banks’ current profitability. No relationship was found between banks’ size and their profitability. Moreover, no relationship was found between the macroeconomic control variable gross domestic product (GDP) and bank profitability. Practical implications Given that organizational-level determinants explain sustainable bank profitability, the findings can be used by bank managers as a basis for low-risk bank policy formulation, and by regulators in monitoring banks relative to international standards (i.e. the Basel Accords). Originality/value To the best of the authors’ knowledge, this is the first study to investigate determinants of bank profitability in Sweden, a country with a strong tradition of bank-based financing, with previous experience of a domestic bank crisis in the 1990s, and where the recent global financial crisis had relatively little impact on domestic banks.

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Section: Concluding Discussionmentioning

confidence: 99%

Section: The Swedish Banking Contextmentioning

confidence: 99%

Organizational-level profitability determinants in commercial banks: Swedish evidence

Yazdanfar

2018

JES

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“…Affective loyalty refers to a customer positive attitude generated from the accumulative previous experience toward a product or service (Chen and Quester, 2015;Henrique and Matos, 2015).This stage is stronger than cognitive loyalty because customers already have an experience with a product or service, which leads to positive attitude and emotional attachment (Fraering and Minor, 2013). Conative loyalty is categorized by a commitment to repurchase a specific product or service (Henrique and Matos, 2015;Strandberg et al, 2015). In this stage, repurchase becomes a behavioral intention where customer shows their commitment to purchase a particular product or service (Fraering and Minor, 2013;Han et al, 2011).…”

Section: Customer Loyaltymentioning

confidence: 99%

“…Some scholars have examined the effect of commitment on customer loyalty in business-tocustomer relationships (Chenet et al, 2010;Fullerton, 2011;Morgan and Hunt, 1994;Sumaedi et al, 2015). For example, Strandberg et al (2015) discover that customer's commitment is plays a significant role in enhancing customer loyalty, the more customers commits to their bank and the more customers loyal. Due to this high level of switching costs and other alternatives, most of customers slightly increase their commitment to maintain the relationships with their banks (Bügel et al, 2011).…”

Section: Commitment As Mediatormentioning

confidence: 99%

Trust, commitment, customer intimacy and customer loyalty in Islamic banking relationships

Tabrani

Amin

Nizam

2018

IJBM

179

197

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Purpose The purpose of this paper is to investigate the role of trust in enhancing customer loyalty, and to test the mediation role of commitment and customer intimacy in the relationship between trust and customer loyalty. Design/methodology/approach A total of 500 questionnaires were distributed and 200 were returned (40 percent response rate), and a structural equation modeling technique was used to test the hypotheses. Findings The results of this study show that trust has a significant relationship with commitment and customer intimacy but no significant relationship was found with customer loyalty. Commitment and customer intimacy have a significant relationship with customer loyalty. The mediation analysis reveals that commitment and customer intimacy play a mediation role in the relationship between trust and customer loyalty. Practical implications This study indicates that commitment and customer intimacy affect customer loyalty. The role of commitment and customer intimacy as a mediator between trust and customer loyalty indicates that customers are committed to continuing and maintaining the relationships with Islamic banks. Originality/value This study provides empirical evidence on interrelationships between trust, commitment, customer intimacy and customer loyalty in banking relationships.

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“…Additionally, when the bank of origin is not a leader, it could be easier for the financial advisor to convince his/her clients to migrate to a bank holding leading positions, offering larger and more sophisticated arrays of financial services, and having a greater incentive to maintain their high reputation. On the other hand, Strandberg et al (2015) highlighted the fact that the personal advisor is central to the bank-customer relationship because financial advisors are able to generate an affective commitment to the bank. Thus, we propose the following:…”

Section: Brand Loyaltymentioning

confidence: 99%

Money transfer between banks

Lippi

Barbieri

Poli

2019

IJBM

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Purpose The purpose of this paper is to examine which individual traits of financial advisors influence portfolio transfer speed when a financial advisor recommends investors to migrate to a new financial intermediary. Design/methodology/approach With reference to the years 2014–2016, one of the three leading Italian tied-agent banks provided the authors with an exclusive and unique data set containing information regarding the financial advisors who had become tied agents, transferring their existing portfolios from their previous banks (traditional or tied-agent banks). The authors observed the ability of the migrant financial advisor in successfully transferring the entire portfolio declared within 12 months of observation. To investigate empirically which personal traits of financial advisors determine their success in the rapid transfer of clients’ portfolios to a new financial intermediary, the authors applied a Cox proportional hazards model. Findings The authors find that factors such as age, type of bank of origin and size of the managed financial portfolio positively affect the speed transfer. Practical implications The obtained results may be interesting for guiding recruiting policies of financial intermediaries. Social implications Regulators should closely examine the phenomenon analyzed in this paper to avoid conflict of interests. Originality/value The literature on this topic is scarce, mainly due to the lack of available data. This paper represents an original contribution to open a new field of research.

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Effects of commitment on intentional loyalty at the person-to-person and person-to-firm levels

Cited by 14 publications

References 54 publications

Organizational-level profitability determinants in commercial banks: Swedish evidence

Organizational-level profitability determinants in commercial banks: Swedish evidence

Trust, commitment, customer intimacy and customer loyalty in Islamic banking relationships

Money transfer between banks

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