Effect of Business Ethics and Product Offering on Customer Loyalty in The Disruption Age: An Analysis of The Banking Sector in Bangladesh
Keywords:
Business ethics, product offering, e-satisfaction, loyalty, internet bankingAbstract
This study aims to analyze the effect of Business ethics and e-satisfaction toward customer loyalty in the context of the banking sector in Bangladesh. The competition is fierce in the current market environment and so every company is under pressure to survive and make more margin which is associated with and required a huge amount of investment too. Strategic tools are used by all organizations in their style to sustain in the local and/or global market. Among others, ethical practices, product offerings, and technological facilities that are provided (e.i. online transactions) are important strategies that need to be considered in the fiercely competitive market. Hence, the identified potential factors are business ethics, Product offering, and technology disruption are the priority to the significant benefits of the business environment. The research used an FGD technique to acquire information regarding end-users (bank’s client) experiences and feedback. This study investigates the effect of business ethics on customer loyalty due to customer satisfaction with online banking (e-satisfaction) and product offered by the bank.
References
Anderson, R. E., & Srinivasan, S. S. (2003). E‐satisfaction and e‐loyalty: A contingency framework. Psychology & Marketing, 20(2), 123–138. https://doi.org/10.1002/mar.10063
Ashraf, S., Ilyas, R., Imtiaz, M., & Tahir, H. M. (2017, November)/December. Impact of CSR on customer loyalty: Putting customer trust, customer identification, customer satisfaction, and customer commitment into equation-A study on the banking sector of Pakistan. International Journal of Multidisciplinary and Current Research, 5, 1362–1372.
Bilan, Y. (2013), Sustainable development of a company: Building of new level relationship with the consumers of XXI century, Amfiteatru Economic, 15, 687-701.
Birindelli, G., Ferretti, P., Intonti, M. and Iannuzzi, A., P. (2015), On the drivers of corporate social responsibility in banks: evidence from an ethical rating model, Journal of Management & Governance, Vol. 19 No. 2, pp. 303-340
Brush, T. H., Dangol, R., O’Brien, J. (2012), Customer capabilities, switching costs, and bank performance, Strategic Management Journal, 33, pp. 1499-1515.
Corporate Finance Institute. (2022, May 8). Business Ethics. Retrieved September 28, 2022, from https://corporatefinanceinstitute.com/resources/knowledge/other/business-ethics/
Duarte, F. (2010), Working with corporate social responsibility in Brazilian companies: the role of managers’ values in the maintenance of CSR cultures, Journal of Business Ethics, Vol. 96 No. 3, pp. 355-368.
Ganiyu, R., A.; Uche, I., I. and Elizabeth, A., O. (2012), Is customer satisfaction an indicator of customer loyalty?, Australian Journal of Business and Management Research, Vol. 2 No. 07, pp. 14-20.
Garcia-Madariaga, J., and Rodriguez-Rivera, F. (2017, July). Corporate social responsibility, customer satisfaction, corporate reputation, and firms’ market value: Evidence from the automobile industry. Spanish Journal of Marketing-ESIC, 21(1), 39–53. doi:10.1016/ j.sjme.2017.05.003
Goel, M., & Ramanathan, P. E. (2014). Business Ethics and Corporate Social Responsibility – Is there a Dividing Line? Procedia Economics and Finance, 11, 49-59. doi: https://doi.org/10.1016/S2212-5671(14)00175- 0
Hapsari, R., Clemes, M., D. & Dean, D. (2017), The impact of service quality, customer engagement and selected marketing constructs on airline passenger loyalty, International Journal of Quality and Service Sciences, Vol. 9 No. 1, pp. 21-40.
Hasiri, S.M.A., and Afghanpour, M. (2016), Investigation of the factors effective on the loyalty of customers in the banking industry in the framework of the model of personality characteristics of personnel (case study: Sepah Bank in Mazandaran Province), Procedia Economics and Finance, Vol. 36, pp. 490-501.
Hellier, P. K., Geursen, G. M., Carr, R. A., & Rickard, J. A. (2003). Customers repurchase intention, European Journal of Marketing, 37(11/12), 1762–1800. https://doi.org/10.1108/ 03090560310495456.
Keisidou, E., Sarigiannidis, L., Maditinos, D., I. and Thalassinos, E., I. (2013), Customer satisfaction, loyalty and financial performance: a holistic approach of the Greek banking sector, International Journal of Bank Marketing, Vol. 31 No. 4, pp. 259-288.
Kim, J., Jin, B., & Swinney, J. L. (2009). The role of retail quality, e-satisfaction, and e-trust in the online loyalty development process. Journal of Retailing and Consumer Services, 16(4), 239–247. http://doi.org/10.1.1.877.3271
Kotler, P., & Armstrong, G. (2008). Marketing principles. Jakarta: Erlangga.
Lam, S., Y.; Shankar, V.; Erramilli, K., M.; & Murthy, B. (2004), Customer value, satisfaction, loyalty, and switching costs: an illustration from a business-to-business service context, Journal of the Academy of Marketing Science, Vol. 32 No. 3, pp. 293-311.
Leninkumar, V. (2017), The relationship between customer satisfaction and customer trust on customer loyalty, International Journal of Academic Research in Business and Social Sciences, Vol. 7 No. 4, pp. 450-465.
Oliver, R. (1999). Whence consumer loyalty? Journal of Marketing, 63(4_suppl1), 33-44.
Ferrell, O., C.; Harrison, D., E., Ferrell, L., & Hair, F., J. (2019). Business ethics, corporate social responsibility, and brand attitudes: An exploratory study. Journal of Business Research, 95, 491-501. doi: https://doi.org/10.1016/j.jbusres.2018.07.039
Ofori, K.S., Boateng, H., Okoe, A.F. & Gvozdanovic, I. (2017), Examining customers’ continuance intentions towards internet banking usage, Marketing Intelligence and Planning, Vol. 35 No. 6, pp. 756-773, available at: https://doi.org/10.1108/MIP-11-2016-0214
Perez, A., & Rodríguez-del-Bosque, I. (2015). Corporate social responsibility and customer loyalty: Exploring the role of identification, satisfaction, and type of company. Journal of Services Marketing, 29(1), 15–25. doi:10.1108/JSM-10-2013-0272
Qamar, M. A., Masood, S., & Junaid, T. (2016). Impact of corporate social responsibility on customer satisfaction and retention: Evidence from the banking sector of Pakistan. International Journal of Financial Economics, 5(3), 33–45.
Romani, S.; Grappi, S.; & Bagozzi, R., P. (2013), Explaining consumer reactions to corporate social responsibility: the role of gratitude and altruistic values, Journal of Business Ethics, Vol. 114 No. 2, pp. 193-206.
Shokati, S., Karkanroodi, A., Joo, Z. H., Ashrostaghi, M., & Jan, N. K. L. (2013). Effective Factors on Customers Brand Loyalty in Iranian Banks. Singaporean Journal of Business, Economics and Management Studies, 51(1111), 1-6.
Sharizal, H., & Norbani, C. H. (2008). Customer satisfaction and loyalty in service brand. Paper presented at the Proceedings of the 3rd International Borneo Business Conference 2008.
Stan, V., Caemmerer, B. and Cattan-Jallet, R. (2013), Customer loyalty development: the role of switching cost, The Journal of Applied Business Research, Vol. 29 No. 5, pp. 1541-1554.
Thuy, L. T., Pham, T. M. T., & Le, L. T. (2019). E-satisfaction and continuance intention: The moderator role of online ratings. International Journal of Hospitality Management, 77, 311-322. doi: https://doi.org/10.1016/j.ijhm.2018.07.011
Tweneboah-Koduah, E. & Farley, Y., D. (2015), Relationship between customer satisfaction and customer loyalty in the retail banking sector of Ghana, International Journal of Business and Management, Vol. 11 No. 1, pp. 249-262.
V. Kaura, V., Prasad, C. S. D., & Sharma, S. (2015). Service quality, service convenience, price and fairness, customer loyalty, and the mediating role of customer satisfaction. International Journal of Bank Marketing, 33(4), 404-422.
Vidgen, R., Hindle, G., & Randolph, I. (2019). Exploring the ethical implications of business analytics with a business ethics canvas. European Journal of Operational Research. doi: https://doi.org/10.1016/j.ejor.2019.04.036
Wardi, Y., Abror, A., & Trinanda, O. (2018). Halal tourism: the antecedent of tourist’s satisfaction and word of mouth (WOM). Asia Pacific Journal of Tourism Research, 23(5), 463-472. doi: https://doi.org/10.1080/10941665.2018.146681 6
Yuen, K., F., & Thai, V., V. (2015). Service quality and customer satisfaction in liner shipping. International Journal of Quality and Service Sciences, 7(2/3), 170-183
Zeithaml, V., A.; Parasuraman, A., & Malhotra, A. (2000). A conceptual framework for understanding e-service quality: implications for future research and managerial practice. Cambridge, MA: Marketing Science Institute.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 AIUB Journal of Business and Economics
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.