Communal-brand connection and service loyalty : the mediation effect of corporate reputation and customer satisfaction among retail banking customers

Abstract

Purpose – The study explores the dynamics among communal-brand connections, corporate reputation, customer satisfaction and their collective influence on service loyalty within the retail customer segment of commercial banks. Design/methodology/approach – Hypotheses are proposed for a parallel and serial-mediatedmodel, inwhich corporate reputation and customer satisfaction mediate the influence of communal-brand connections on service loyalty. Data are collected from a sample of retail customers of commercial banks in a European country. Findings – Findings indicate that individuals who perceive a strong affiliation with a brand that emphasises community engagement are more likely to demonstrate loyalty to that brand. Results highlight the need for managers allocate resources to cultivate community initiatives that foster communal-brand connection in their drive to improve service loyalty. Research limitations/implications – A non-representative sample was collected, with a focus on a limited set of variables and employing a unidimensional measure of service loyalty. Additionally, the significance of communal-brand connection may vary across brands, warranting replication studies among smaller banks. Practical implications – Recognition of communal-brand connection as an important driver of customer loyalty suggests that customers are motivated by intrinsic positioning factors related to the community. As part of their positioning, commercial banks can leverage their marketing and communication efforts to foster community development, thereby enhancing customer identification, connection and narratives that foster belongingness among customers. Originality/value – The model of direct and mediated model of communal-brand connection on service loyalty has not been previously explored. Moreover, the research is conducted among retail bank customers that representing a context seldom considered in the domain of brand communities.