Retail Bank brand loyalty towards Capitec Bank and FNB among LSM 1-6 consumers in South Africa – a study on the influences of brand perception and loyalty.

Abstract

This exploratory study aims to build on the understanding of brand loyalty versus value proposition in the context of poverty alleviation, by looking into the drivers of LSM 1-6 consumer brand loyalty towards Capitec and FNB and their perceptions of South Africa’s top five retail banking brands. Capitec and FNB continue to grow their market share in the lower to middle LSM consumer segment through their Global One and eWallet offerings, respectively, while not comparably, the most affordable brands for this cost-conscious segment. To achieve this, data was collected through qualitative in-depth interviews were conducted with six Capitec and/or FNB eWallet users in Gauteng. Content analysis was used to extract and conclude the findings of the study juxtapositioned against Aaker (1991) and Seth & Park’s (1974) brand theories. The findings of this study and their implications will build on the understanding of how consumers in this segment derive value from banking products and services. Secondly, what other banking brands can learn about effectively marketing their brands to this segment.