Consumer Perceived Value and Brand Loyalty: A Study of Retail Banking

Consumer Perceived Value and Brand Loyalty: A Study of Retail Banking

Harsh V. Verma (Faculty of Management Studies, University of Delhi, New Delhi, Delhi, India), Jyoti Kainth (Institute of Management Technology, Ghaziabad, Uttar Pradesh, India) and Priya Gupta (Shaheed Sukhdev College of Business Studies, University of Delhi, New Delhi, Delhi, India)
DOI: 10.4018/jcrmm.2012100101


Consumer Perceived Value (CPV) perceived to have been derived from the consumption of product or service is the Value that a consumer believes that he receives for a certain amount of money. This study was conceptualized so as to understand the most important CPV dimensions and its role in predicting Attitudinal Brand Loyalty in pre purchase situations in the Indian Retail Banking context on the basis of SPERVAL (Services Perceived Value) Scale. The empirical study was based on descriptive research design (cross-sectional) and used questionnaire as the key research instrument. The questionnaire was administered to 100 respondents using a mix of judgmental and convenience non-probability sampling methods. The most important CPV dimensions, which were also the major predictors towards attitudinal brand loyalty in the context of Indian retail banking, were Functional Value, Economic Value, After Sale Value and Epistemic Value. The study has implications for retail banking marketers and can help them understand the consumer psychology behind evaluating the product offering. The service providers can also use the findings from the research to build on their competitive advantage by developing core competencies in strategic arenas. The limitations of the study included limited coverage with respect to sample size.
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The Context

Companies operate on a product service continuum ranging from pure product offerings to pure service offerings with intervals of product service mixes. Amidst fierce competition and blurring boundaries between augmentations and expectations, services play an increasingly important and differentiated role even in product oriented frameworks. Services industry faces complex market situations and interactions because of its inherent characteristics on one hand and increasing sophistication and intensity of competition on the other. It is therefore imperative for marketers to understand the phenomenon of CPV as the starting point in strategy formulation and for understanding the complex consumption behaviors involved in services industry context. Retail banking primarily has service orientation with a mix of product tangibles. This study focuses to understand the complex consumer decision making process with respect to selection of a bank in the retail banking segment.

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