SME banking loyalty (and disloyalty): a qualitative study in Hong Kong

Abstract

Research limitations/implications Since the study is qualitative, a larger empirical study would be useful to attempt to replicate our results in this and other geographic markets. Practical implications The results suggest that the Hong Kong SME market is characterized by high level of disloyalty, and that attaining 100% loyalty from this group of customers will be very difficult. 3 Instead, a banking strategy that focuses on service and on developing a sustained relationship with the customer may have the greatest chance of maximising the share-of-wallet of SME customers. The study offers important marketing implications for banks which are operating, or are planning to operate, business banking in Hong Kong and comparable Asian markets. Originality/ value It is the first paper to study the incidence of, and reasons underlying, SME banking loyalty in an Asian market. It shows that disloyalty appears to be the norm in this sector, presenting a reminder to managers and researchers that customer loyalty may be the exception, rather than the norm.

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