An Analysis of Customer Satisfaction and Customer Loyalty within the Danish Banking Industry

Emil Bindseil Møller & Frederik Gert Frandsen

Student thesis: Master thesis

Abstract

This master thesis will serve as an analysis of customer satisfaction and loyalty within the Danish Banking industry. The master thesis is structured around both inductive and deductive methods, with a collection of data from both qualitative and quantitative methods. The results based on the qualitative and quantitative analysis are used to create a model, which can describe how the danish banking industry can create greater satisfaction and loyalty. The banking industry is a vital part of socioeconomics since it contributes to employment and value creation through lending in all parts of Denmark. Hereby, a functioning banking industry ensures liquidity for companies and consumers, which can help finance growth for the economy. The qualitative analysis was formed around five in-depth interviews based on semi-structured methods, where the respondents have the opportunity to contribute with their reflections. Hereby, the qualitative analysis contributed to designing questions for the questionnaire used in the quantitative analysis. The quantitative analysis is based on 240 respondents. The data were structured through factor analysis, which created nine factors in the data: Satisfaction, Loyalty, Expectations, Products and services, Change of a bank, Perceived value, Image, Expectations to CSR and Perceived CSR. A multiple regressions analysis showed which factors had a significant effect on perceived value, satisfaction, and loyalty. The most significant effect was through Products and services, which had an impact on all three of them. However, Image also affected both satisfaction and loyalty, while Perceived CSR affected loyalty. Furthermore, the analysis showed how some factors have a direct effect on satisfaction and loyalty. Through cluster analysis, three segments of the respondents were found: The neutral, The very satisfied and loyal, and the unsatisfied and disloyal. Based on the multiple regression and through the creation of positioning maps the model for satisfaction and loyalty shows that the banks can increase their satisfaction through a focus on their products and services and their image. Furthermore, the model shows that the banks can increase loyalty through product and services, image, and the customers perceived CSR. However, for further analysis, it should be based on a larger sample size, which can make a base for greater insights into the factors driving satisfaction and loyalty.

EducationsMSc in Economics and Marketing, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2021
Number of pages243