Loyalty Creation in the Danish Banking Industry

Jacob Scheel-Krüger & Thomas Aarris Jensen

Student thesis: Master thesis


This paper will serve as an analysis of customer loyalty creation within the Danish banking industry. The paper is structured after the premise of deductive reasoning with data collection from both qualitative and quantitative methods. The results presented from the research are used to create structural models to describe customer loyalty creation.
The Danish banking industry is characterized as an industry dominated by few, big businesses such as Danske Bank, Nordea Bank, Jyske Bank and a few others. The digital era has created some degree of buying power for the customers, but for now, they don’t really pressure the actors due to passive behavior.
Seven parameters that seem to affect the creation of customer loyalty are identified from interviews and focus group interview: Expectations, service, price/interest rate, image, accessibility, products and mental barriers.
The quantitative analyses are based on an online questionnaire with 270 respondents. Through the factor analysis nine parameters are estimated in the data: Image, personal service, mental barriers, accessibility, price/interest rate, differentiation, involvement and digital service. By conducting linear regression analysis only image, personal service and price/interest rates are significant to loyalty. Subsequently three segments of customers are identified based on their satisfaction, loyalty and the existence of mental barriers.
Finally, a PLS analysis is conducted to create a structural customer loyalty model with the variables that drive loyalty. A generic model for the banking industry are created and also three different models to explain loyalty creation within the defined segments.
Based on the customer loyalty models created, positioning maps for each model are presented to identify specific target areas for action based on current performance and effect on loyalty.

EducationsMSc in Economics and Marketing, (Graduate Programme) Final Thesis
Publication date2017
Number of pages232