Abstract
Background to the study: In a banking context, trust creates a feeling of security for customers that their bank protects their money and that there are systems in place to safeguard their money against dishonest behaviour. However, reduced trust levels in the bank can result in the customer not trusting the bank when an experience is perceived negatively, thereby reducing customer loyalty in the long term.Purpose of the study: The study aims to explore the role of trust, its stimuli, and its outcome in an emerging African market environment. Through such an approach, greater knowledge can be obtained on the trust-loyalty link in a retail banking setting in an emergent African market.Design/methodology/approach: The study was quantitative and cross-sectional in nature and analysed data collected from 400 retail bank customers through the application of self-administered questionnaires. Quota sampling was used to select respondents, and standard multiple regression was conducted to validate the proposed hypotheses formulated.Findings: Expertise, customer orientation, perceived value, and service fairness have a significant and positive influence on trust. Moreover, trust has a positive and significant influence on customer loyalty.Managerial implications: The study guides South African retail banks in developing enhanced knowledge on the importance of trust as a precursor to loyalty in an emerging African market context. Furthermore, it emphasises the importance of selected trust stimuli (expertise, customer orientation, perceived value, and service fairness) that influence the future strengthening of the trust-loyalty link.Value: Through the application of a relationship marketing and cognitive appraisal theory framework, selected trust stimuli are explored to uncover their influence in strengthening the trust-loyalty link.