Abstract Purpose: The success of any service industry is not only highly depended on its ability to attract potential customers, but also to maintain and retain customers who have used the services and products. Without the ability to preserve and defend, it predicted the bank tends to be abandoned by its customers, and will switch to another bank that offers services similar products. Factors that influenced banking success such as service marketing mix, company characteristics, brand characteristics, borrower satisfaction and brand trust of micro-borrowers will become the focus of this study.
Design/methodology/approach: This research was using data from three biggest micro banking in Indonesia based on credit portfolio. – Empirical evidence from both depth interviews and data obtained from 120 respondents were integrated into a conceptual model. The model was tested using structural equation modeling.
Findings: The result of this research was shown that service marketing mix, company characteristic, brand characteristic, and borrower satisfaction had significant effect on the borrower loyalty. Service marketing mix had the biggest influence effect on borrower loyalty. And brand trust had no significant effect on borrower’s loyalty.
Practical implications: The finding providing insight for bank’s top management in developing debtor’s loyalty for business sustainability.
Originality/value: This research examines the influence of brand trust in service industry had different context with trade industry.
Prof. Dr. Bilal BİLGİN