Influence Of Relationship Marketing On Customer Loyalty The Case Of Commercial Banks In Quang Ngai Province.doc

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THE UNIVERSITY OF DANANG
UNIVERSITY OF ECONOMICS
NGUYEN THI NHU MAI
INFLUENCE OF RELATIONSHIP MARKETING ON CUSTOMER
LOYALTY: THE CASE OF COMMERCIAL BANKS IN QUANG
NGAI PROVINCE
Major: Business Administration
Code: 62.34.01.02
SUMMARY OF DOCTORAL THESIS
Danang - 2022

The thesis was completed at
UNIVERSITY OF ECONOMICS, THE UNIVERSITY OF DANANG
Science instructor:
First instructor: Assoc.Prof.Dr. Pham Thi Lan Huong
Second instructor: Dr. Ngo Thi Khue Thu
Reviewer 1: Assoc.Prof.Dr. Pham Duc Chinh
Reviewer 2: Assoc.Prof.Dr. Hoang Trong Hung
Reviewer 3: Assoc.Prof.Dr. Do Thi Thanh Vinh
The thesis is protected at the dot Council the thesis graduated with a doctorate
in Business Administration at Danang University on the day 29 month 10 year
2021.
The thesis can be found at:
- The University of Da Nang – The Center for Learning Information
Resources and Communication.
- National Library of Vietnam.

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CHAPTER ONE: INTRODUCTION
1.1. Necessity of research
Relationship marketing is a broad concept proposed by Berry (1983), there are many different
approaches to study it. Although there are many studies on relationship marketing with different
perspectives, most of them are studies in developed countries with diverse research models. In addition,
according to Nguyen et al. (2012), the relationship marketing model has potential differences between
countries with developing economies and developed economies. In today's fiercely competitive financial
services industry, Asian businesses tend to gather information through official channels and personal
relationships (Adamson et al., 2003). Therefore, relationship marketing is considered as a particularly
appropriate strategic tool in the Asia contex in general and Vietnam in particular
In recent years, Quang Ngai province's socio-economy has been constantly growing, so bank branches
have been continuously formed in the province to meet the demand for capital for the purpose of provincial
development. The strong investment in both technology and quality of customer service in order to nurture and
maintain loyalty customers is a key issue in the development of the banking industry in Quang Ngai province.
For that reason, with the desire to develop and maintain loyalty customer in commercial banks, the
author chooses the topic "Influence of relational bonds on customer loyalty: The case of commercial
banks in Quang Ngai province”.
1.2. Research Objectives
- Exploring relational bonds factors affecting the individual customer loyalty at commercial banks in
Quang Ngai province
- Analyzing the influence of relational bonds factors on the the individual customer loyalty at
commercial banks in Quang Ngai province; at the same time analyze the influence of switching costs and the
individual customer loyalty at commercial banks in Quang Ngai province.
- Proposing policy implications for the commercial banking industry in Quang Ngai province to
increase the individual customer loyalty .
1.3. Research questions
1. What are the relational bonds factors affecting the individual customer loyalty for commercial
banks in Quang Ngai province?
2. How influential are the relational bonds factors related to the individual customer loyalty at
commercial banks in Quang Ngai province?
3. What are the proposed policy implications?
1.4. Object and scope of the research
- Object of the research: focus on identifying and building a relational bonds model in the banking
sector affecting the individual customer loyalty using banking services in commercial banks in Quang Ngai
province.
- The scope of the research:
+ The identification of research subjects also confirms the scope of research focusing on relational
marketing activities, also known as relational bonds, including financial bonds, social bonds and structure
bonds of banks for individual customers
+ The private customer are using service of the commercial banks in Quang Ngai in 2010 – 2018
period.

2
1.5. The research method
The research methods in this study are qualitative and quantitative methodology.
Qualitative research included a review of related studies combined with in-depth interviews.
Quantitative research includes: preliminary quantitative research and official quantitative research.
Quantitative research uses Cronbach's Alpha, exploratory factor analysis (EFA), confirmatory factor analysis
(CFA), the structural equation modeling (SEM) method, Bootstrap method (software supporting SPSS 16.0
and AMOS 21.0).
1.6. Overview of research
1.6.1. Research of relational bonds in aboard
There are many different views about the origin of relational bonds, but most authors argue that the
origin of this concepts is Berry (1983), who first proposed it in the context of professional services.
So far, there are many definitions of relational bonds among authors, which reflect different stages in
the relationship marketing development.
Relationship marketing is a broad concept with many different approaches. In it, this concepts seen
as the relational marketing activities or relational bonds that businesses use for their customers. The
relational bonds is one of the approaches studied by many authors, considering them as relational marketing
activities (ie, Gwinner et al., 1998; Lin & colleagues, 2003; Liang et al, 2005; Hafedh Ibrahim et al, 2008).
The relational bonds is also seen as the type and level of relationship marketing (Yu, Tsu-Wei et al, 2013;
Berry, 1995).
In this study, the author examines the application of relational marketing in the banking industry
through relational bonds. This is considered one of the most effective activities to consolidate, maintain and
enhance customer loyalty.
1.6.2. Situation of research on relational bonds in Vietnam
In Vietnam, there is very little research on marketing relations between suppliers and customers.
Research results of Hau & Liem (2012) show that the importance of components of relationship marketing
affects the satisfaction of customers. Two other studies: Hoang Nguyen (2012), research on relational
marketing in the field of textiles and Mai Ngoc Khuong (2013) in the field of tourism. The results of these
studies all show that relational marketing activities have a significant impact on the business results of the
business, customer satisfaction, or positively affect the financial interests. Although there haven’t been a lot
of research on relationship marketing in Vietnam, the authors have shown the characteristics and differences
of the relational marketing model in the transitional economy compared to the research models in developed
economies (Nguyen & Ngo, 2012). This also shows that the application of models with scales available from
previous studies has some differences.
1.6.3. Some case studies of relational bonds
1. Research by Berry, L. L. (1995), Relationship marketing of services - growing interest, emerging
perspective . This is the author study developed from his research in 1985 (Berry & Parasuraman, 1991).
Research by Lin, N. et al (2003)
2. Research by Lin, N. et al. (2003), Relational Bonds and Customer's Trust and Commitment - A
Study on the Moderating Effects of Web Site Usage.
3. Research by Wang, W., Liang, C. & Wu, Y. (2006), Relationship bonding tactics, relationship
quality and customer behavioural loyalty-behavioural sequence in Taiwan's information service industry.

3
4. Research by Chen, Yi-Ling & Chiu, Hung-Chang (2009), The effects of relational bonds on
online customer satisfaction,
5. Research by Chih, Wen-Hai, Yang, Tsung-Ju, Huang, Ling-Chu & Cho, Hsien-Ping (2009),
Online Relational Bond, Trust and Customer Loyalty
6. Research by Shammout, Ahmad B. (2018), An empirical investigation of relational bonds on
attitudinal and behavioral customer loyalty for Arabic luxury hotel customers
7. Research by Hu and Chaudhry (2020) on relationship marketing and customer engagement in the
e-commerce context .
8. Research by Jasmin and Siddiqui (2020) on relationship marketing and customer loyalty intention
in the banking sector in Pakistan.
9. Research by Alagarsamy et al (2020) on relationship marketing to customer loyalty through brand
relationship quality in the field of online business.
1.6.4. Research gap in relational bonds
From synthesizing and analyzing literature on relational bonds from view of Berry (1995) and
research authors who develop from this perspective (Gwinner et al., 1998; Lin, N. et al., 2003; Liang, C. et
al., 2005; Hafedh Ibrahim et al, 2008; Yu, Tsu-Wei et al., 2013), the thesis can draw some conclusions such
as follow:
(1) Although the relationship between the components of relational bonds and customer loyalty has
received the attention of many researchers. However, considering the direct relationship of each relational
bonds component (financial bonds, social bonds, structural bonds) with customer loyalty is very few in the
world. In addition, in the previous studies compiled and analyzed until June 2019, the author has not found
any studies on each individual component that constitutes direct impact of relational bonds to customer
loyalty, and at the same time each of these components directly impacts satisfaction and thereby increases
customer loyalty.
(2) The consideration of the relationship between each of the relational bonds components relates to
the relationship results such as satisfaction to thereby increase customer loyalty which is limited.
(3) In the financial services industry as a whole, the switching costs factor affecting loyalty is
studied by many scholars, and it is seen as an important component in maintaining customer loyalty.
However, in research on relational bonds affecting customer loyalty, there have not been many studies on the
impact of switching costs on loyalty as a separate variable to increase the customers loyalty.
(4) In developing economies, especially those in transitional economies, the relationship between
customers and businesses has great differences from those developed. Through a combination of previous
studies, it can be noticed that studies of relational bonds in transitional economies are few. In addition,
according to Nguyen and Ngo (2012), relational marketing is generally studied extensively in developed
economies, but it is still quite new to Vietnamese companies in a transitional economy. In Vietnam, so far,
according to the synthesis of the author, there have been no empirical studies examining the relationship
between the components of relational bonds related to the relationship results (satisfaction and loyalty)
between business and customers.
1.7. New contributions of the research
1.7.1. Contribution of the research in theory
(i) The thesis has completed and developed a number of relational marketing scale (specifically,
financial bonds, social bonds and structural bonds), customer satisfaction, switching costs and customer

4
loyalty (behavioral loyalty and attitudinal loyalty) are relevant to the business context of the Vietnamese
banking industry.
(ii) In the thesis, the author considers relationship marketing as a multi-pronged concept consisting
of three components: financial bonds, social bonds and structural bonds affecting loyalty. through
satisfaction. It is this study that provides a stronger basis for the conclusion of increasing loyalty through
pleasing them that many authors have demonstrated. Thus, the author's research model integrates both the
direct relationship between relationship marketing to loyalty and relationship marketing to satisfaction,
thereby affecting customer loyalty in the bank sector.
1.7.2. The contribution of research in practical terms
(i) Research to measure and identify the relationship between relationship marketing (financial
bonds, social bonds and structural bonds), satisfaction, switching costs and individual customer loyalty in the
banking sector at joint stock commercial banks in Quang Ngai province. From there, banks can proactively
build solutions to better meet the needs and maintain customer loyalty.
(ii) An important contribution of the thesis is that in the banking industry in particular and in
Vietnam in general, there has not been any empirical research on the relationship marketing model (relational
bonds) including important marketing components. Financial bonds, social bond and structural bond in the
view of Lin et al. (2003) inherited from Berry (1995). The author hopes that this will be a serious research
result that adds to the judgment of previous international authors, as well as a demonstration of the impact of
relationship marketing on maintaining customer loyalty in the banking industry in Quang Ngai in particular
and in Vietnam in general.
1.8. Structure of the thesis:
Chapter 1: Introduction to research issues; Chapter 2: Literature review and Research model of relational
bonds; Chapter 3: Research design; Chapter 4: Results analysis and research models testing; Chapter 5:
Discussion and implications
CHAPTER TWO: LITERATURE REVIEW AND RESEARCH MODEL OF RELATIONSHIP
MARKETING
2.1. Literature review of research concepts
2.1.1. Background of relational bonds
2.1.2. The definition of relational bonds
There are many the definition of relational bonds which most certainly inheritant from the definition
of Berry & Parsuraman (1991); and Berry (1995). Relational bonds which practicing multiple levels of
relationship marketing based on types of bonds used to foster customer loyalty
2.1.3. The components create relational bonds
2.1.3.1. Financial bonds
Financial bonds are usually referred to as frequency marketing or retention marketing, where the
service provider uses economic benefits, such as price, discounts or other financial incentives to secure
customer loyalty (Berry & Parsuraman, 1991; Berry, 1995; Lin & cộng sự, 2003; Hsieh & cộng sự,
2005,…). 2.1.3.2. Social bonds
Social bonds include linking of identities through self-disclosure, closeness, providing support or
advice, being empathetic and responsive, feelings of affiliation, attachment, or connectedness, and shared
experience. Lin et al. (2003) and Hsieh et al. (2005) provide a more comprehensive view by defining social

5
bonds as personal ties that pertain to service dimensions that offer interpersonal interactions, friendships, and
identifications.
2.1.3.3. Structural bonds
Berry (1995) suggested that structural bonds are created by providing customers with value-added
systems that customers cannot build or use themselves and are not available from other souces.
2.1.4. The results of relational bonds
2.1.4.1. The customer loyalty
The customer loyalty definition of Kathleen Khirallah (2005) is thought to be adequate with both
aspects (behavioral loyalty and attitude loyalty) and it is used by many authors when they study about the
customer loyalty in the banking sector.
According to Kathleen Khirallah (2005), when customers choose to deal with a bank, they will
continue to deal with the bank, suggesting others to use the bank's services and when they need to use the
new service, they will see that bank is the first choice even if it knows there may be relatively better options
in other banks about service or utility prices.
2.1.4.2. Satisfaction
Crosby et al. (1990) defined satisfaction as customer perception by customers evaluating via
communication experiences with service providers until assessed, and this evaluation will be used by
customers to predict future experiences.
2.1.5. Switching costs
According to Burnham et al. (2003), switching costs are customer perceptions of time, money and
effort related to the change in service providers or direct costs that customers can give which relates to the
transition from one supplier to another. Therefore, switching costs can be seen as one of the factors
discouraging customers when they want to switch to another company. Switching costs allow customer who
maintain a loyal relationship with the company (Jones et al., 2002).
2.2. The relationship between the relevant components in the research model
2.2.1. The relationship between relational bonds dimentions and customer loyalty
In a number of studies, the authors have pointed out the direct relationship between relational bonds
components (financial, social and structural bonds) to customer loyalty.
According to Berry and Parsuraman (1991) and Berry (1995) financial bonds is also known as
frequency or maintenance marketing, in which service providers use economic benefits to ensure customer
loyalty. You see them as the first level of customer loyalty guarantee. In the study of Shruthi and Devaraja
(2012), it is suggested that financial bonds is to provide financial-related gifts to repeat buyers or to
customers who buy in bulk to strengthen their relationship with suppliers. In the study of Wang, W. et al.
(2006) demonstrated in the information service industry there is a direct and positive relationship between
financial bonds and customer loyalty. In addition, in the study of Yatundu, Faraji A. et al. (2017) showed a
positive direct relationship between financial bonds and customer loyalty in the retail industry.
From the above summaries and analyzes form the following research hypotheses:
H1: The financial bonds has a positive impact on customer loyalty
Social bonds can lead to positive outcomes such as customer retention (Seabright et al., 1992), word of
mouth (Price and Arnould, 1999) and loyalty (Guenzi and Pelloni, 2004). Berry and Parasuraman (1991) and
Berry (1995) call social bonds a second level of marketing relationship to ensure customer loyalty, service
providers use incentives higher than incentives for price to build long-term relationships with customers, build

6
a social bridge between sellers and buyers. Liang and Wang (2005) also pointed out that companies use social
bonds to build stable relationships and improve relationship quality. In addition, in the study of Yatundu, Faraji A.
et al. (2017) showed a positive direct relationship between social bonds and customer loyalty in the retail industry.
In addition, the study of Wang, W. et al. (2006) demonstrated that the information service industry has a direct
and positive relationship between social bonds and customer loyalty.
H2: The social bonds has a positive impact on customer loyalty
Shammout (2013), in a survey of the determinants of customer loyalty in Jordan in travel companies,
pointed out that structural bonds is the highest level of linkage in relational bonds. The reason is that
companies can strengthen their relationships with customers by adding structural bonds activities in addition
to financial and social bonds. In Sarwari and Minar (2014) 's study of hotel chains, hotels introduced WAP-
based (web-based) communication to improve communication with their customers (Louvieris, Driver and
Powell- Perry, 2003) to maintain customer loyalty. Customers are regularly provided with a WAP-enabled
device, on which access to reservations and other information, providing value-added services to customers
that are not available elsewhere. In addition, in the study of Yatundu, Faraji A. et al. (2017) showed a
positive direct relationship between structural bonds and customer loyalty in the retail industry. Or as the
study of Shammout A.B et al (2018) has once again affirmed a direct relationship between structural bonds
and customer loyalty in the hotel industry in Saudi Arabia.
H3: The structural bonds has a positive impact on customer loyalty
2.2.2. The relationship between relational bonds dimentions and satisfaction
Table 2.5. Summarize the researchs about relationships between relational bonds with satisfaction
Satisfaction Tác giả, năm
Salleh
(2014)
Chen
&
cộng
sự
(2009)
Ziaullah
&
cộng
sự
(2014)Bolton
&
cộng
sự
(2003)
Gu
&
cộng
sự
(2016)
Al-Hersh
&
cộng
sự
(
2
0
1
4
)
1 2 3 4 5 6
Relational bonds
Satisfactio
n
Satisfaction
Satisfaction
Satisfactio
n
Satisfaction
Satisfactio
n
+ + + +
Finacial
Social + ns + + +
Structural + + + +
(Source: Collection of the author)
Note: “ns”: The relationship has not been determined
“+”: Positive relationship

7
Through the process of literature synthesis and analysis, there is a direct and positive relationship of
each type of relational bonds including financial bonds, social bonds, and structural bonds to customer
satisfaction.
H4: Financial bonds impacts possibly on customer satisfaction
H5: Social bonds impacts possibly on customer satisfaction
H6: Structural bonds impacts possibly on customer satisfaction
2.2.3. The relationship between satisfaction and loyalty
Table 2.6 summarizes case studies on the relationship between satisfaction and loyalty.
Table 2.6. Summarize the researchs about relationships between satisfaction and loyalty
Author,
Ali
Raza
&
cộng
sự
(2012)
year
Rozita
&
cộng
sự(2012)He
nnig&cộngs
ự(2012)Hos
sein&cộngs
ự(2012)Alru
baiee&cộng
sự(2010)
Afsar
&
cộng
sự(2010)Ndubisi&cộngsự
(2012)
1 2 3 4 5 6 7
Satisfaction + + + + + + +
(Source: Collection of the author)
Note: “ns”: The relationship has not been determined
“+”: positive relationship
H7: Satisfaction impacts possibly on customer loyalty
2.2.4. The relationship between switching costs and loyalty
H8: Switching costs impacts possibly on customer loyalty

8
2.3. Research model of relational bonds
Relational bonds Switching costs
Finance bonds
Social bonds
Structural bonds
H1+ H8+
H4+ H7+ Customer loyalty
Satisfaction
H5+
H6+
H2+
H3+
(Source: Author)
Figure 2.1. Proposed research model for relationship marketing
CHAPTER THREE: RESEARCH DESIGN
3.1. Research process
3.2. Research design
3.2.1. Research methods
3.2.1.1. Qualitative research methods
Qualitative research was conducted firstly to check the relevance and adjust the theoretical model,
while helping to discover, adjust and supplement the observed variables used to measure research concepts,
ensuring building scale is suitable for theory and is concretized. In addition, qualitative research is conducted
through in-depth interview techniques (face-to-face) with 12 experts who are managers in commercial banks
in Quang Ngai province, and the group discussions method that including 10 customers have transactions at
commercial banks in Quang Ngai province.
3.2.1.2. Quantitative research methods
Formal research is done by quantitative research methods. This study was conducted through a direct
survey with customers of commercial banks in Quang Ngai province. The study collected samples based on
the customers convenient access methos at commercial banks in Quang Ngai province. Some common
information mentioned that include: Gender, marital status, age, qualifications, income, occupation,
experience of using banking products and services.
3.2.2. Research samples
Based on items and research concepts, the sample size for this study is at least 43 * 5 = 215
observations. However, in the official study, the thesis used the observation number of 418. Thus, it is
possible to conclude the observation number n = 418 to ensure the research results.
3.3. Measuring scale of concepts in research model
3.3.1. Loyalty scale items (Symbol is LOY)
Based on the theory and measuring scale of loyalty from previous studies, this measuring scale was
built on the research of Lewis & Soureli (2006); Celso et al. (2009); and Dahlia El-Manstrly et al (2011)
consisting of 06 questions as shown in Table 3.2.

9
Table 3.2. Loyalty scale items
Symbol Description of the scale Sources
LOY1 I plan to continue using X banking services in the coming years Lewis & Soureli
LOY2 I recommend bank X to my friends, relatives and others (2006)
LOY3 Bank will be my first choice when I have a need for banking services Celso et al. (2009)
LOY4 I like bank X more than other banks Dahlia El-Manstrly
LOY5 I will talk well about bank X to my friends and relatives et al. (2011)
LOY6 Bank X is my main service provider
3.3.2. Switching costs scale items (Symbol is SWC)
Based on the theory and measuring scale of switching costs loyalty from previous studies, this
measuring scale was built on the research of Burnham et al. (2003), Jones et al. (2007) & Celso et al. (2009)
Table 3.3. Switching costs scale items
SWC1 If I switch bank X, I may be at risk when the selected bank does not meet my Burnham et
demand al. (2003);
Jones & et
SWC2 If I switch bank X, it will take a lot of time and effort to start a relationship with the
al. (2007);
new bank Celso et al.
SWC3 If I switch bank X, I will lose close relationship with the service staff of bank X (2009)
SWC4 No bank conversion allowed me to receive discounts and special offers from bank X
3.3.3. Satisfaction scale items (Symbol is SAT)
Evaluating customer satisfaction based on the relationship experience that customers have with
their banks, thus defining the relationship satisfaction of De Wulf & Associates (2001) used in the thesic.
Table 3.1. Satisfaction scale items
SAT1 As a regular customer, I have a highquality relationship with bank X De Wulf et al.
(2001)
SAT2 I am happy with the efforts this chain is making towards regular
customers like me Lin & Chung
SAT3 I am satisfied with the relationship I have with bank X (2013)
SAT4 I am satisfied with what bank X does for me
Hsieh & Hiang
SAT5 Overall, I am satisfied at bank X
(2004, 2005)
3.3.4. Relational bonds scale items
3.3.4.1. Financial bonds scale items (Symbol is FB)
Based on the theory and measuring scale of financial bonds from previous studies, this measuring
scale was built on the research of Hsieh et al. (2005); and Lin et al. (2003) consisting of 05 questions as
shown in Table 3.5.

10
Table 3.5. Financial bonds scale items
FB1 I can receive gifts when using X banking service Hsieh et
al.
FB2 Bank X provides discounts or better priced products/services to encourage (2005);
customers to use the services in the future Lin N. et
FB3 Bank X provides discounts or better priced products/services for loyal
al. (2003)
customers
FB4 Bank X provides cumulative point programs for customers
FB5 Bank X provides prompt services for regular customers
FB6 Bank X provides many promotions for customers Expert
FB7 Bank X is affiliated with other business organizations that offer me non- ideas
financial products / services at discounted prices
3.3.4.2. Social bonds scale items (Symbol is SB)
Based on the theory and measuring scale of Social bonds from previous studies, this measuring scale
was built on the research of Hsieh et al. (2005); Lin et al. (2003); Zeithaml (2003); and Berry (1995)
Table 3.6. Social bonds scale items
SB1 Bank X keeps in touch with me regularly Hsieh et
SB2 Bank X is concerned and knowledged with my needs al. (2005);
Lin N. et
SB3 I received special treatment from bank X
SB4 I receive greeting cards or gifts on special days al. (2003);
Zeithaml
SB5 The manager and staff of bank X knows me
(2003);
SB6 Bank X sponsors social activities for customers
Berry
SB7 Employees of bank X help me to solve my personal problems (1995)
3.3.4.3. Structural bonds scale iterm (Symbol is StB)
Based on the theory and measuring scale of Structural bonds from previous studies, this measuring
scale was built on the research of Hsieh et al. (2005); Lin et al. (2003); and Dibb & Mcadows (2001)
Table 3.7. Structural bonds scale items
StB1 Bank X provides personalized services according to my needs Hsieh &
cộng sự
StB2 Bank X provides after-sales service for my requirements well
(2005);
StB3 Bank X provides knowledge of products / services for me
StB4 Bank X provides innovative products/services Lin & cộng
StB5 Bank X provides a variety of products / services for me to choose sự (2003);
Dibb &
StB6 Bank X provides various ways to deal with transactions (e.g., bills, check
in, check out) Mcadows
StB7 I receive a prompt response after any complaint (2001)
3.4. Preliminary enquiries assesses the scale items
3.4.1. Design survey questionnaire
The preliminary survey questionnaire is designed with 2 parts:
Part 1: General information of customers, focusing on surveying demographic variables and
experience of using banking products/ services which applied to respondents.

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Part 2: Including questions aimed at understanding the customers views and opinions of
customers who participating in the interview about relational bonds factors, satisfaction, trust, switching
costs and customer loyalty.
3.4.2. Describing the investigation program and the survey form
Preliminary research program via quantitative research method is carried out with the votes number
issued: 130, the votes number collected: 115.
- Survey sample: Individual customers who are using banking services.
- Respondents are individual customers who are using Vietnam commercial banking services in
Quang Ngai province.
- Investigation method: Direct survey through questionnaire
- Time for implementing the survey program: From September 01, 2017 to September 30, 2017.
3.4.3. Descriptive statistics results
During the survey period (September 01, 2017 to September 30, 2017), 140 questionnaires were
issued for direct interviews with customers of commercial banks in the Quang Ngai province.
The survey sample used a convenient approach. Respondents are individual customers who are
trading at Vietnam commercial banks. At the eand of the survay, the mumber of completed questionnaires
collected was 115 reaching 82.14%.
The survey sample structure is divided and statistically calculated according to criteria such as
gender, marital status, age, education level, average income, occupation and local living, historical period
service use, the products and services number used, the commercial banks number used and the products and
services level used.
3.4.4. Statistical hypothesis test results
3.4.4.1. Evaluate reliability of the scale items
Preliminary enquiries results are showed below:

The reliability assessment results of the Loyalty scale items through Cronbach’s alpha

After removing variables LOY5 and LOY6, the reliability of the scale has α = 0.809 (higher than
before removing variables) and the corrected item- total correlation in this scale items varies from 0.560 to
0.701, evenly > 0.3. Thus, the scale meets the required reliability.

The reliability assessment results of the Satisfaction scale items through Cronbach’s alpha

After removing variables SAT1, the reliability of the scale has α = 0.907 (higher than before
removing variables) and the corrected item- total correlation in this scale items varies from 0.710 to 0.873,
evenly > 0.3. Thus, the scale meets the required reliability.

The reliability assessment results of the Switching costs scale items through Cronbach’s alpha


The switching cost scale items is composed of four observed variables. The reliability of the scale
has α = 0.948 (higher than before removing variables) and the corrected item- total correlation in this scale
items varies from 0.856 to 0.906, evenly > 0.3. Thus, the scale meets the required reliability.

The reliability assessment results of the Financial bonds scale items through Cronbach’s alpha
After removing variables FB7 and FB4, the reliability of the scale has α = 0.850 (higher than before


The reliability assessment results of the Social bonds scale items through Cronbach’s alpha


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After removing variables SB6, the reliability of the scale has α = 0.925 (higher than before removing
variables) and the corrected item- total correlation in this scale items varies from 0.706 to 0.861, evenly >
0.3. Thus, the scale meets the required reliability.

The reliability assessment results of the Structural bonds scale items through Cronbach’s alpha
After removing variables StB2, the reliability of the scale has α = 0.902 (higher than before

The summary of the scales reach reliability which is shown in Table 3.17.
3.4.4.2. Evaluate the scale value – Exploratory Factor Analysis (EFA)
a) EFA for Relational bonds
KMO and Bartlett's testing for the second relational bonds dimensions after item deleted StB1,
indicating KMO = 0.843> 0.5, factor analysis is consistent with research data; and Sig. = .000 <0.05,
showing the research data has a high significance level. Thus, it is appropriate to implement EFA for these
factors.
According to the data, there are three factors extracted with the total variance extracted of 69.65%>
50%. Variables in all scales have the factor loading from 0.649 to 0.883, both> 0.5. So the value of these
scales is acceptable.
b) EFA for Satisfaction
KMO and Bartlett's testing for the satisfaction, indicating KMO = 0.795> 0.5, factor analysis is
consistent with research data; and Sig. = .000 <0.05, showing the research data has a high significance level.
Thus, it is appropriate to implement EFA for these factors.
According to the data, there are three factors extracted with the total variance extracted of 78.383%
> 50%. Variables in all scales have the factor loading from 0.831 to 0.934, both> 0.5. So the value of these
c) EFA for the switching costs
KMO and Bartlett's testing for the first switching costs, indicating KMO = 0.854> 0.5, factor
analysis is consistent with research data; and Sig. = .000 <0.05, showing the research data has a high
significance level. Thus, it is appropriate to implement EFA for these factors.
d) EFA for customer loyalty
KMO and Bartlett's testing for the first customer loyalty, indicating KMO = 0.758> 0.5, factor
3.4.4.3. Evaluate reliability of the scale items by Cronbach’s alpha for new scale item
Reliability analysis results of the scale items even has α> 0.6 which ensure reliability and the
corrected item- total correlation in this scale items evenly > 0.3. Thus, the scale meets the required
reliability.

13
3.5.4.4. Conclusion of preliminary research results
Through the implementation of the preliminary research program which interviews with 120 people
who are using commercial banking services in Quang Ngai province. There were 115 satisfactory votes and
included in the There were 115 satisfactory votes and included in the data analysis.
After assessing the scales reliability, adjust the scales to be highly reliable and appropriate. The
scales are used the exploratory factor analysis to assess the factor loading of the variables in the scale. At the
same time, preliminarily assess the scales differentiation according to the category of its meaning in the
research model. This preliminarily assess results screened inappropriate variables in the scales and a
variables list applied to the official research program.
Table 3.24 The summary of the dimension scales after prelominary survey
Symbol Items
Financial bonds
1 FB1 I can receive gifts when using X banking service
2 FB2 Bank X provides discounts or better priced products/services to encourage customers
to use the services in the future
3 FB3 Bank X provides discounts or better priced products/services for loyal customers
4 FB5 Bank X provides prompt services for regular customers
5 FB6 Bank X provides many promotions for customers
Social bonds
1 SB1 Bank X keeps in touch with me regularly
2 SB2 Bank X is concerned and knowledged with my needs
3 SB3
I received special treatment from bank X
4 SB4 I receive greeting cards or gifts on special days
5 SB5 The manager and staff of bank X knows me
6 SB7 Employees of bank X help me to solve my personal problems
Structural bonds
1 StB3 Bank X provides knowledge of products / services for me
2 StB4 Bank X provides innovative products/services
3 StB5 Bank X provides a variety of products / services for me to choose
4 StB6 Bank X provides various ways to deal with transactions (e.g., bills, check in, check
out)
5 StB7 I receive a prompt response after any complaint
Satisfaction
1 SAT2 I am happy with the efforts this chain is making towards regular customers like me
2 SAT3 I am satisfied with the relationship I have with bank X
3 SAT4 I am satisfied with what bank X does for me
4 SAT5 Overall, I am satisfied at bank X
Switching cost
1 SWC1 If I switch bank X, I may be at risk when the selected bank does not meet my demand
2 SWC2 If I switch bank X, it will take a lot of time and effort to start a relationship with the
new bank

14
3 SWC3 If I switch bank X, I will lose close relationship with the service staff of bank X
4 SWC4 No bank conversion allowed me to receive discounts and special offers from bank X
Customer loyalty
1 LOY1 I plan to continue using X banking services in the coming years
2 LOY2 I recommend bank X to my friends, relatives and others
3 LOY3 Bank will be my first choice when I have a need for banking services
4 LOY4 I like bank X more than other banks
CHAPTER FOUR: RESULTS ANALYSIS AND RESEARCH MODELS
TESTING 4.1. Official research
4.1.1. Design a formal study program
- Research sample: From the arguments based on Bolen (1989) and Hair et al (2010), the research
program has issued 430 questionnaires.
- Investigative method: In this study, the author uses the survey method by distributing
questionnaires to customers in the investigation and data collection for official research.
- Survey subjects: In this study, the respondents to the questionnaire are individual customers who
are using Vietnam Joint Stock Commercial Bank services in Quang Ngai province.
4.1.2. Descriptive statistics results
4.1.2.1. Descriptive statistics on sample structure
A total of 430 questionnaires were distributed and collected questionnaire number was 423. In the
process of data entry and processing, there are 05 error sheets. As a result, 418 valid questionnaires
constituted the sample for this official research program.
4.1.2.2. Statistics describing the average level of factors in the research model
The level of customer loyalty when banks use relationship marketing activities and switching costs
are now above the average of 3,325. The level of loyalty for the social bonds element is 3,803 (the highest of
the factors). Meanwhile, the level of loyalty for the structural bonds element is 2,210 (lowest among the
factors), this is the least satisfied customer factor.
4.2. Results of the statistical hypothesis test in official research
4.2.1. Evaluate reliability of the scale items through Cronbach’s alpha
Evaluate reliability of the scale items through Cronbach’s alpha of the scales of customer loyalty,
satisfaction, trust, switching costs, financial bonds, social bonds, structural bonds shown coefficient α is
0.857; 0.891; 0.899; 0.889; 0.927; 0.885 are all> 0.6 to ensure reliability, and the corrected item- total
correlation in this scale items is greater than 0.3. Thus, the scales that meet the required reliability and
eligibility to CFA analysis
4.2.2. Evaluate the scale value – Exploratory Factor Analysis (EFA)
4.2.2.1. EFA for Relational bonds
KMO and Bartlett's testing for the second relational bonds dimensions, indicating KMO = 0.865 >
0.5, factor analysis is consistent with research data; and Sig. = .000 <0.05, showing the research data has a
high significance level. Thus, it is appropriate to implement EFA for these factors.

15
% . Variables in all scales have the factor loading from 0.674 đến 0.914, both> 0.5. So the value of these
4.2.2.2. EFA for Satisfaction
KMO and Bartlett's testing for the first mediate dimensions, indicating KMO = 0.804 > 0.5, factor
According to the data, there are two factors extracted with the total variance extracted of 75.499% >
50%. Variables in all scales have the factor loading from 0.816 đến 0.912, both> 0.5. So the value of these
4.2.2.3. EFA for switching costs
KMO and Bartlett's testing for the first switching costs, indicating KMO = 0.854 > 0.5, factor
4.2.2.4. EFA for customer loyalty
KMO and Bartlett's testing for the first customer loyalty, indicating KMO = 0.757 > 0.5, factor
4.3.3. Confirmatory factor analysis (CFA)
4.3.3.1. Confirmatory factor analysis methods

CFA results of relational bonds

This model has 98 freedom degrees. CFA shows the model's parameters as follows: Chi-square =
263.210 (p = .000), CMIN / df = 2,686 <3. Other indicators show that the model is suitable for market data,
specifically: GFI, TLI, CFI are respectively 0.929; 0.957; 0.965; both> 0.9 and RSMEA = 0.064 <0.08.
Thus, the model achieved unidirectional, ie the components of relational bonds have no correlation between
the errors of the observed variables.
- Convergent validity: The standardized weights of observed variables all meet the permitted
standard (≥0.5) and the unstandardized weights are statistically significant (p <0.05). Thus, the observed
variables used to measure the three dimensions of the research model achieve convergent validity
- Discriminant validity: The estimated correlation coefficients associated with the standard error (SE) of
the correlation between the concepts for p values are less than 0.05, so the correlation coefficients of these concept
pairs are different with 1 at 95% confidence, thus these pairs of concepts achieve discriminant validity.
- Evaluate the scale reliability: The composite reliability and the variance extracted from scales of
relational bonds components show that they all have values> 0.5. This confirms that all three scales of
relational bonds are reliable.

16
Conclusion, the CFA results of the dimensions measuring in the research model are consistent with
market data, achieving unidirectional, convergent validity, discriminant validity and reliability.

CFA results of the research model

This model has 333 freedom degrees. CFA shows the model's parameters as follows: Chi-square =
923.988 (p = .000), CMIN / df = 2.775 <3. Other indicators show that the model is suitable for market data,
specifically: TLI, CFI are respectively 0.914; 0.924; both> 0.9 and RSMEA = 0.065 <0.08.
- Convergent validity: The standardized weights of observed variables all meet the permitted
standard (≥0.5) and the unstandardized weights are statistically significant (p <0.05). Thus, the observed
variables used to measure the three dimensions of the research model achieve convergent validity
- Discriminant validity: The estimated correlation coefficients associated with the standard error (SE) of
the correlation between the concepts for p values are less than 0.05, so the correlation coefficients of these concept
pairs are different with 1 at 95% confidence, thus these pairs of concepts achieve discriminant validity.
- Evaluate the scale reliability: The composite reliability and the variance extracted from scales of
relational bonds components show that they all have values> 0.5. This confirms that all scales of research
model are reliable.
Conclusion, the CFA results of the dimensions measuring in the research model are consistent with
market data, achieving unidirectional, convergent validity, discriminant validity and reliability.
4.3.3.2. Conclusion of confirmatory factor analysis (CFA)
The summary of confirmatory factor analysis (CFA) results is shown in Table 4.11
Table 4.11. The summary of the scale test results
Dimensions SL Reliability Cumulati Suitability
biến ve of
quan Variance
Name Symb sát Cronbac Composit
h e
Financial bonds FB 5 0.889 0.891 0.623 Suitable
Social bonds SB 6 0.927 0.911 0.633 Suitable
Relational Structural bonds StB 5 0.885 0.888 0.614 Suitable
Satisfaction SAT 4 0.891 0.894 0.679 Suitable
Switching costs SWC 4 0.899 0.889 0.670 Suitable
Result Loyalty LOY 4 0.857 0.859 0.706 Suitable
variable
(Source: Author)
4.4. Testing theoretical models through Structural equation modeling (SEM)
The second SEM analysis, the author relied on the MI criteria to improve the model to make the
model more relevant with market data. Specifically, the author chooses the pairs of error e which has the
largest MI, using two-headed arrows to connect pairs of errors in turn: e3 – e6 and e17 – e20 together which
shown in Figure 4.3.

17
Figure 4.3. The second SEM (standardized) for the adjusted theoretical model
This model has 335 freedom degrees. The second SEM shows the model's parameters as follows:
Chi-square = 939.165 (p = .000), CMIN/df = 2.803 < 3. Other indicators show that the model is suitable for
market data, specifically: TLI, CFI are respectively 0.912; 0.922 both> 0.9 and RSMEA = 0.066 <0.08.
Thus, the model meets well to market data.
4.4.1. Testing hypotheses
Based on the analytical data shows, social bonds and structural bonds have a direct impact on
customer loyalty. Besides, financial bonds, social bonds and structural bonds all have a direct impact on
satisfaction. Finally, satisfaction and switching costs have a direct impact on customer loyalty.
4.4.2. Testing hypotheses results
Results of the theoretical models estimates and boostrap test in SEM show that the hypothetical
relationships in the theoretical model have p-significance level ranging from 0.000 to 0.005 required (at 95%
confidence level). In other words, the following hypotheses are summarized as shown in Table 4.17.
Table 4.17. Summary of hypothesis test results
H Hypotheses Standardized P- Results
regression value
coefficients
H1 The financial bonds has a positive impact on customer loyalty 0.079 0.179 Reject
H2 The social bonds has a positive impact on customer loyalty 0.232 0.000 Accept
H3 The structural bonds has a positive impact on customer loyalty 0.155 0.004 Accept
H4 The financial bonds has a positive impact on satisfaction 0.466 0.000 Accept
H5 The social bonds has a positive impact on satisfaction 0.167 0.002 Accept
H6 The structural bonds has a positive impact on satisfaction 0.095 0.066 Accept
H7 Satisfaction impacts possibly on customer loyalty 0.119 0.046 Accept
H8 Switching costs impacts possibly on customer loyalty 0.369 0.000 Accept
(Source: Author)

18
CHAPTER FIVE: DISCUSSION AND IMPLICATIONS
5.1. Discuss the results of the study and contributions of the research
5.1.1. Discussing research results
The research results of the thesis show the compatibility between the theoretical model and the
market data, as well as the acceptance of the hypotheses presented in this research model to show practical
implications for many different objects. Specifically, including: (1) Vietnamese commercial banks in Quang
Ngai province, (2) individual customers using banking services in Quang Ngai province and (3) ) academic
researchers in marketing (relational bonds).
The thesis has discovered that relational bonds is a multi-dimensional structure of 16 indicators with
3 elements: financial bonds, social bonds and structural bonds.
The results of the thesis show that social bonds has the most impact on loyalty compared to
structural bonds, while financial bonds has no impact on loyalty.
Besides, the thesis results also confirm that all components of relational bonds including financial
bonds, social bonds and structural bonds all have a positive impact on customer satisfactio. In particular, the
most powerful impact on customer satisfaction is financial bonds.
At the same time, the thesis also confirms customer satisfaction has a positive and direct impact on
customer loyalty.
In addition, the thesis also proves that switching costs have a direct and positive impact on customer
loyalty.
As is well known, a customer database with loyal customers is the leading competitive advantage of
banks in a competitive environment. Through the research results, the direct result of the bank's use of
relational bonds with customers is to directly increase customer loyalty, as well as enhance the satisfaction to
thereby increase Customer loyalty which is the ultimate goal of this study. Through the research model,
understanding how the components of relational bonds and switching costs play a role in increasing customer
loyalty, from which banks consolidate related activities. to relational bonds, customer satisfaction, switching
costs and customer loyalty, will promise to enhance the competitive position in the marketplace. This is a
key factor for banks to maintain their sustainable development.
On the other hand, in Vietnam, there has not been any empirical research on relational bonds model
including financial bonds, social bonds and structural bonds. The author expects this to be a serious research
result that complements the observations of previous international authors, as well as a testament to the
impact of relational bonds related to enhance customer loyalty in the banking industry in Quang Ngai in
particular and Vietnam in general.
5.1.2. Contributions of the research
5.1.2.1. Contribution of the research in theory
The thesis has contributed to determine the need to approach relational bonds from the perspective of
the constituent aspects (components) and the degree of their influence on the loyalty and satisfaction of
individual customers in the banking sector. Besides, the proposed model in the thesis has expanded the
necessary factors to increase customer loyalty, which is the switching costs. The results in this respect will
contribute to and enrich relational bonds measurement models.
The thesis has built a relational bonds model in the financial services sector, especially the banking
sector. This is considered to be the first study in Vietnam on the relational bonds model in the banking

19
industry. This result has partly contributed to the theory that relationships in the relational bonds model in
the banking sector have been existing in Vietnam market.
Finally, the thesis has applied modern research methods and used modern data analysis support tools
to prove the research results to ensure reliability in the banking sector. Therefore, the thesis will encourage
researchers to pay more attention in using modern methods and tools to develop consumer behavior research.
5.1.2.2. The contribution of research in practical terms
Firstly, banks in Quang Ngai province in particular and Vietnam in general will better understand
the importance of relational bonds in the banking industry. Banks are also aware of the constituent aspects of
marketing that affect loyalty and satisfaction. From there, they will have appropriate strategies to improve
and enhance relational bonds activities, increase satisfaction, switching costs to maintain customer loyalty.
This finding helps managers to have the appropriate orientation, solutions and policies in order to
maximize effectiveness in retention the customer loyalty.
5.2. Governance implications for commercial banks
5.2.1. Enhance activities of relational bonds
In order to strengthen competition among banks as well as competition between banks and other
financial services, commercial banks need to have more special preferential treatment policies for customers
such as designing different payment account packages according to the specific needs of each customer
group; for online transactions, banks need to clarify the charges for users that are being collected. Online
chat programs, chat boxes and detailed instructions for users will not be a small plus to keep customers
continuing to use the bank's services.
5.2.2. Enhance social bonds activities
Commercial banks need to regularly assess the perceived quality of customers through surveying
and collecting information from existing customers; continue to create trust for customers through making
accurate transactions, keeping promises and making information transparent. Commercial banks should also
regularly update the sufficient information of products, services and policies to customers; training staff to
increase the ability of the team to provide direct services to customers.
One of the important factors in the experience at commercial banks is that the work of the customer
needs to be solved quickly, simply, not to let customers wait too long.
5.2.3. Enhance structure bonds activities
- To take advantage of opportunities and overcome challenges from technology revolution 4.0 to
adapt, develop sustainably in the 4.0 era, commercial banks should strengthen innovation within the
organization and promote renovation from outside through strengthening cooperation of Fintech (financial
technology), creating digital ecosystems in an open way, strengthening collecting and exploiting customer
data, and completing legal framework for digital bank development … It’s essential to upgrade construction
of infrastructure and technology for electronic payment activities; security and safety of the banking system
continues to be focused and strengthened; electronic payment services and facilities are strongly developed
and diversified with many new, safe and convenient payment products and services to meet the increasing
demands of society and adapt to international economic integration process.
- Commercial banks must provide diverse and unique financial and banking services, creating
distinctions, actively researching to offer market new products and services with much more preeminent
features and utilities to replace existing products.
- Commercial banks should invest in electronic banking (E_Banking).

20
5.2.4. Create positive transition barriers to retain customers
Create high switching costs; create psychological barriers and create technical and
technological barriers to enhance customer loyalty.
5.3. Limitations of research and further research directions
Like any other study, this study has its limitations, namely:
- Research in this thesis only considers and tests a number of factors and criteria considered to be the
most important in the banking service industry. Although the study has confirmed the significance of the
concepts involved in the theoretical model, there may be other concepts that are also statistically significant
to be explored.
- This study is only for customers who are using banking services in Quang Ngai provinces. The
ability to generalize the research results will be higher if it is repeated with a sample structure that includes
customers in many parts of the country.
- With the scope of the study being individual customers, this study has only considered a part of the
bank's customer structure in Vietnam.
- However, in order to confirm the results in this study to be popular, it needs to be tested in other
businesses in Vietnam, and this may be the next research direction to perfect the measurement model.
Relational bonds measurement in a transition economy.

21
LIST OF PUBLISHED WORKS RELATED TO THE THESIS
Nguyễn Thị Như Mai và Nguyễn Mạnh Toàn (2015). Luận bàn marketing quan hệ trong bối cảnh cạnh
tranh và hội nhập. Kỷ yếu Hội thảo quốc gia- Khoa học quản trị và Kinh doanh lần thức IV
(COMB 2015)
Nguyen Thi Nhu MAI, Lan-Huong Thi PHAM, Nguyen Ngoc HIEN (2021). How Relational Bonds
Influence Consumers’ Loyalty: An Empirical Analysis in Vietnam Commercial Banks.
QUALITY Access to Success. Vol. 22, No. 182.
Phạm Thị Lan Hương và Nguyễn Thị Như Mai (2016). Marketing quan hệ trong ngành tài chính – Góc
nhìn từ B2B marketing. Kỷ yếu Hội thảo khoa học quốc gia – Đào tạo, nghiên cứu, ứng dụng
Marketing và thẩm định giá ở Việt Nam.
Phạm Thị Lan Hương và Nguyễn Thị Như Mai (2016). Relationship marketing in electronic banking
services: A literature review. Kỷ yếu Hội thảo quốc tế - Marketing in the connected age (MICA
2016).
Phạm Thị Lan Hương, Nguyễn Thị Như Mai và Trương Đình Quốc Bảo (2016). Luận bàn về chính sách
marketing quan hệ dựa trên lợi ích của các ngân hàng. Kỷ yếu Hội thảo quốc gia- Khoa học quản
trị và Kinh doanh lần thức VI (COMB 2017)
Phạm Thị Lan Hương, Nguyễn Thị Như Mai và Ngô Thị Khuê Thư (2018). Chính sách marketing quan hệ
dựa trên lợi ích: Góc nhìn từ cơ sở lý luận. Nghiên cứu Châu Âu, Số 03 (2010)
Phạm Thị Lan Hương, Nguyễn Thị Như Mai và Ngô Thị Khuê Thư (2018). Tác động của chính sách
marketing quan hệ đến lòng trung thành khách hàng tại các ngân hàng thương mại tỉnh
Quảng Ngãi. Kinh tế và Dự báo, Số 09/ 03/2018.

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