Brand Experience in Banking Industry: Direct and Indirect Relationship to Loyalty



Summary

In marketing, the meaning of value is rapidly shifting from service and relationships to experiences. It is believed that the traditional value proposition is no longer effective to compete in the market and to gain customer loyalty. By adapting the brand experience model, this study tries to validate the model in the banking industry, which is currently facing intense competition to retain customers. The brand experience construct is tested for its direct and indirect relationship toward loyalty. It is postulated that satisfaction and brand authenticity might be instrumental in mediating brand experience to loyalty. Research was conducted via in-depth interview and quantitative survey, targeting bank customers in Jakarta. The result confirmed that brand experience has direct and indirect contribution to loyalty in significant and positive manner. The research contributes in validating previous studies with a rare emphasis in banking sector. The result implies that brand experience is an important value to lead to customer loyalty in this area and subject to growing research on experience marketing.


Keywords

Brand Experience, Consumer Behavior, Banking, Authenticity, Brand Loyalty, Satisfaction, Experience Marketing, Service