Factors that determine customer brand loyalty of visa credit cards in Nairobi

Abstract

Brand loyalty is at the heart of the brand's value. Loyalty is the core of the brand equity. If customers are indifferent to the brand and buy with respect to features, price and convenience without concern to the brand name, the brand is likely to have little equity. This study sought to establish the factors that determine customer brand loyalty on credit cards, with a special reference to VISA cards. This was achieved by examining the influence of visa credit cards on the banks performance, the extent to of customer loyalty visa credit cards, and finding out the factors that determine customer brand loyalty to credit cards with a special reference to VISA credit cards.

This study assumed a descriptive design drawing its respondents from Nairobi CBD branches of Kenya Commercial Bank Limited and Barc1ays Bank Limited Visa card customers. Questionnaires ware administered to customers who hold credit/debit cards. Purposive sampling and random sampling was used to .select the customers. The data was analyzed using Predictive Analytical Software (P ASW). The findings were then presented in frequencies and percentages using tables and figures.

This study found out that there existed credit card brand customer loyalty shown by the long duration majority of the respondents had held their credit cards, and reference of other customers to access similar service. The multiple credit cards from different banks held by customers showed this. Despite the multiple credit card holding by the customers, this study revealed that majority of the customers did not relinquish the cards earlier acquired.

This study further found out that the factors that determine credit card customer loyalty were related to the value and utility derived from the card usage. These are: bank's reputation, flexibility of repayment, and credit cost, durability of the card, geographical network coverage of the bank, and satisfaction derived from card usage. Factors less considered by majority of the respondents are the convenience offered by card usage, prestige, and the target customer for the particular card.