Perceptions of Bank Managers on Loyalty of Mobile Phone Banking Corporate Customers in Kenya

Abstract

The broad objective of the study was to assess the perceptions of bank managers on loyalty of mobile phone banking corporate customers in Kenya. The specific objectives were to: determine the extent to which mobile phone banking attributes influence commercial bank corporate customer loyalty; establish whether manager psychological capital and demographics separately moderate this relationship; and to determine the extent to which mobile phone banking attributes, manager demographics and psychological capital jointly influence commercial bank corporate customer loyalty. The study was anchored on diffusion of innovations theory, relationship marketing theory and resource based theory. The research hypotheses were derived from the study objectives and the extant literature. The study used a positivistic approach and descriptive cross-sectional design. The target population of the study was 78 top managers from 26 commercial banks in Kenya offering mobile phone banking services. The data were analysed using descriptive statistic, inferential statistics and factor analysis. The results of the study revealed that mobile phone banking attributes had statistically significant influence on corporate customer loyalty (R=0.830, F=34.586, P<0.05). Manager demographics factors individually moderated the relationship between mobile phone banking attributes and corporate customer loyalty except age (Age (β= .038, P=0.237 which is >0.05), Education level R=.761, F=6.490, P<0.05), Gender (β= -.078, t=1.372, P<0.05) and Professional background (β= 0.201, t=2.961, P<0.05). Psychological capital also moderated the relationship between mobile phone banking attributes and corporate customer loyalty (β=0.301, t=2.905, P<0.05. The study further revealed that mobile phone banking attributes, manager demographics and psychological capital had statistically significant joint influence on corporate customer loyalty (R2=0.688, F=34.586, P<0.05). The study has contributed to theory, policy and practice in relation to marketing in general and customer loyalty in particular. The results have contributed to strengthening the existing body of literature by confirming empirically that manager demographics and psychological capital affect the relationship between mobile phone banking attributes and corporate customer loyalty in the banking sector. Embracing mobile phone banking will help banks attain corporate customer loyalty and general operational efficiency. It is recommended that banks use the findings of this study to develop marketing strategies that enable corporate customers adopt mobile phone banking and become loyal to them. The government can use these results in policy development regarding bank products in Kenya. However, the study had limitations in that only top management was targeted leaving out other employees. Sampling other senior managers in each bank could ensure a larger and more inclusive sample. The selection of research variables was not exhaustive. The study used cross sectional research design which limits generalisation. However, the results were not adversely affected by these limitations. Future research could address these limitations by conducting a study in a different context and using longitudinal studies.