Consumers’ awareness and loyalty in Indonesia banking sector: does emotional bonding effect matters?

Abstract

Purpose This study aims to examine the relationship between emotional bonding (e.g. brand love, brand commitment and brand trust) and consumers’ awareness and consumers loyalty to conventional and Islamic banking products in Indonesia. Design/methodology/approach The sample consists of 585 Muslim and bank consumers obtained through a survey study and using structural equation modeling to test the research hypotheses. Findings The empirical results indicate that brand love, commitment and trust have significant and positive effects on consumers’ awareness and loyalty. Furthermore, as the mediator variables, consumers’ awareness partially mediates the relationship between emotional bonding and consumers’ loyalty. Research limitations/implications This study was validated by Indonesian Muslims; therefore, future study is needed to validate across the region and sector. Practical implications This study enlightened the bank managers from a marketing and psychological context. The bank managers need to enhance the control and promote their brand and products to improve their relationship and consumers. Originality/value This study provided the Muslim consumers' decision-making process by developing and testing a model of emotional bonding and consumers’ perspective toward bank products.