FACTORS AFFECTING CUSTOMER SATISFACTION AND CUSTOMER LOYALTY IN THE THAI RETAILING BANKING INDUSTRY IN THE EASTERN ECONOMIC CORRIDOR (EEC)
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Abstract
This study examines how service quality, price and fairness, service convenience, and digital transformation influence customer satisfaction and customer loyalty in the Thai retail banking industry in the Eastern Economic Corridor (EEC), Thailand. A total of 561 structured questionnaires were collected from retailing bank customers living in three provinces, Chachoengsao, Chon Buri, and Rayong, and 512 were used and analyzed for this research after the COVID-19 pandemic. In-depth interviews were conducted with ten bank experts and ten bank users based on the qualitative research results. However, this paper mainly focuses on quantitative research, and the findings from the in-depth interviews will be summarized in another paper. The research revealed that Thai bank users gave the highest rating to online banking due to its free charges. In contrast, they gave the lowest rating to price, including bank service charges and deposit and/or loan interest rates, because some customers think banks can offer more attractive prices. SEM analysis indicated that service convenience had the strongest impact on customer satisfaction, followed by service quality, price and fairness, and digital transformation. It also indicated that four antecedents also had a positive impact on customer loyalty through customer satisfaction. For future research, it is recommended that quantitative research be conducted in other regions of Thailand, including economically underdeveloped areas, and in-depth interviews with bankers and corporate finance managers regarding corporate finance be conducted.
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