The Role of Multichannel Marketing in Customer Retention and Loyalty: Study in Emerald Bank Customer in Indonesia

Ambarwati Ambarwati, Djumilah Zain Hadiwidjojo, Achmad Sudiro, Fatchur Rohman

Abstract


Attention on the relationship between customer retention, customer loyalty, and customer satisfaction that serves as "seed" of customer loyalty highlight the important factors for multichannel management. With the growing trends of people in investing their money in bank for securities need to be responded by the marketing department to create better marketing strategies. The purpose of this study is to examine and explain the effect of a multichannel bank on emerald customers retention   in one of the largest SOE bank in Indonesia, in the city of Surabaya, BNI (Bank Negara Indonesia) toward customer  satisfaction, loyalty and customer  retention. This study develops the theory  of  mix marketing by using multichannel  as one of the elements that can increase customer retention   using satisfaction mediation and customer loyalty. Mechanical determination of sample units in this study is a  purposive sampling, of 89 respondents. Generalized Structured Component Analysis (GSCA) was applied to test the hypotheses. The results of this study indicate that direct multichannel not  significantly effect the customer retention. Customer satisfaction can not be a perfect mediation  and the customer loyalty can be a perfect mediation in the relationship between multichannel and customer retention. This study contributes to the banking industry in applying the concept of the mix marketing.


Keywords


Multichannel; satisfaction; loyalty; customer retention; and emerald customer

Full Text:

PDF

References


Al-Hawari, M., & Ward, T. (2006). The impact of automated service quality on financial performance and the mediating role of customer satisfaction. Marketing Intelligence & Planning, 24(2), 127-147.

Al-Hawari, M., Ward, T., & Newby, L. (2009). The relationship between service quality and retention within the automated and traditional contexts of retail banking. Journal of Service Management, 20(4), 455 - 472.

Birgelen, M. v., Jong, A. d., & Ruyter, K. d. (2006). Multi-channel service retailing: The effects of channel performance satisfaction on behavioral intentions. Journal of Retailing, 82(4), 367 - 377.

Black, N. J., Locket, A., Ennew, C., Winklhofer, H., & McKechnie, S. (2002). Modelling consumer choice of distribution channels: an illustration from financial services. Journal of Bank Marketing, 20(4), 161 - 173.

Bleuel, W. H. (2010). Loyalty versus Retention - Is there a Difference.

Buell, R. W., Campbell, D., & Frei, F. X. (2010). Are Self Service Customers Satisfied or Stuck? Production and Operations Management Society, 19(6), 679 - 697.

Burnham, T. A., Frels, J. K., & Mahajan, V. (2003). Consumer switching costs: a typology, antecedents, and consequences. Journal of the Academy of Marketing Science, 31(2), 109 - 126.

Cortiñas, M., Chocarro, R., & Villanueva, M. L. (2010). Understanding multi-channel banking customers. Journal of Business Research, 63, 1215 - 1221.

Durkin, M., Howcroft, B., O'Donnell, A., & McCartan-Quinn, D. (2003). Retail bank customer preferences: personal and remote interactions. International Journal of Retail & Distribution Management, 31(4), 177 - 189.

Gerpott, T. J., Rams, W., & Schindler, A. (2001). Customer retention, loyalty, and satisfaction in the German mobile cellular telecommunications market. Telecommunications Policy, 25, 249 - 269.

Henry, C. (2000). Is Customer Loyalty a Pernicious Myth? Esevier Science.

Homburg, C., Fabnacht, M., & Werner, H. (1998). Operationalisierung von Kundenbindung and Kundenzufriedenheit (M. Bruhn, & C. Homburg ed.). Wiesbaden: Gabler.

Hsieh, Y.-C., Roan, J., Pant, A., Hsieh, J.-K., Chen, W.-Y., Lee, M., et al. (2012). All for one but does one strategy work for all?: Building consumer loyalty in multi-channel distribution. Managing Service Quality, 22(3), 310 - 335.

Kotler., & Amstrong. (1997). Dasar-dasar Pemasaran (Terjemahan) (7E ed.). Jakarta: Erlangga.

Mols, N. P., Bukh, P. N. D., & Nielsen, J. F. (1999). Distribution channel strategies in Danish retail banking. International Journal of Retail & Distribution Management, 27(1), 37 - 47.

Nazir, M. (2009). Metode Penelitian (7 ed.). Jakarta: Ghalia Indonesia.

Neslin, S. A., Grewal, D., Leghorn, R., Shankar, V., Teerling, M. L., Thomas, J. S., et al. (2006). Challenges and opportunities in multichannel customer management. Journal of Service Research, 9(2), 95 - 112.

Neslin, S. A., & Shankar, V. (2009). Key issues in multichannel customer management: current knowledge and future directions. Journal of Interative Marketing, 23(1), 70-81.

Oliver, R. L. (1999). Whence consumer loyalty? Journal of Marketing, 63, 33 - 44.

Ranaweera, C., & Praghu, J. (2003). On the relative importance of customer satisfaction and trust as determinants of customer retention and positive word of mouth. Journal of Targeting, Measurement and Analysis for Marketing, 12(1), 82-90.

Rangaswamy, A., & van Bruggen, G. H. (2005). Opportunities and challenges in multichannel marketing. Journal of Interactive Marketing, 19(2), 5 - 12.

Reichheld. (1996). Learning from customer defections. Harvard Business Review, March/April, 56 -59.

Reichheld, & W. Earl Sasser, J. (1990). Zero Defections: Quality Comes to Services. Harvard Business Review, September.

Santouridis, I., & Trivellas, P. (2010). Investigating the impact of service quality and customer satisfaction on customer loyalty in mobile telephony in Greece. The TQM Journal, 22(3), 330-343.

Shankar, V., & Winer, R. S. (2005). Interactive marketing goes multichannel. Journal of Interactive Marketing, 19(2), 2 - 3.

Slack, F., Rowley, J., & Coles, S. (2008). Consumer behaviour in multi-channel contexts: the case of a theatre festival. Internet Research, 18(1), 46-59.

Solimun. (2010). Analisis Multivariat Pemodelan Struktural, Metode Partial Square - PLS. Malang: CV Citra Malang.

Stauss, B., Chojnacki, K., Decker, A., & Hoffmann, F. (2001). Retention effects of a customer club. International Journal of Service Industry Management, 12(1), 7-19.

Sutawi. (2009). Empat Strategi Perbankan Memenangkan Persaingan Perbankan Indonesia. Bank dan Manajemen, pp. 39 - 40. Retrieved from http://infobaa.umm.ac.id/files/file/Artikel_Koran/Empat_Strategi_perbankan_memenangkan_persaingan.pdf

Tjiptono Fandy. (2005). Pemasaran Jasa (Edisi Pertama ed.). Malang: Bayu Media Publishing.

Trasorras, R., Weinstein, A., & Abratt, R. (2009). Value, satisfaction, loyalty and retention in professional services. Marketing Intelligence & Planning, 27(5), 615 - 632.

Wallace, D. W., Giese, J. L., & Johnson, J. L. (2004). Customer retailer loyalty in the context of multiple channel strategies. Journal of Retailing, 80(4), 249 - 263.

Wan, W. W. N., Luk, C.-L., & Chow, C. W. C. (2005). Customers' adoption of banking channels in HongKong. International Journal of Bank Marketing, 23(3), 255-272.

Wong, C.-B., & Mula, J. M. (2009). The Moderating Effect of Switching Costs on the Customer Satisfaction-retention Link: Retail Internet Banking Service in Hong Kong. Hong kong.

Wright, A. (2002). Technology as an enabler of the global branding of retail financial services. Journal of International Marketing, 10(2), 83 - 98.

Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1996). The behavioral consequences of service quality. Journal of Marketing, 60, 31 - 46.




DOI: http://dx.doi.org/10.21776/ub.apmba.2014.002.03.4

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.