Skip to main content
SpringerLink
Log in

A Global Competitiveness Study of Thai Securities Industry: A Case Study of Factors Influencing Investors’ Loyalty to Securities Companies in Bangkok

  • Research Paper
  • Empirical Study
  • Published:
Global Journal of Flexible Systems Management Aims and scope Submit manuscript

Abstract

Since the Free Trade Agreement is utilized as the spearhead of the powered country to penetrate the market. Thai securities industry is targeted as the potential one. But in the industry, however, nothing has been changed concerning relationships between the marketers and investors. Investors always pay their loyalty to the marketer rather than to the brokerage firm. A major problem is that investors always move their portfolio according to marketers’ suggestions and actions to a new brokerage firm where those marketers switch to work for on a full-time basis. Therefore, if securities companies know any other significant factors that influence Thai investors’ loyalty, it might achieve competitive advantages in planning and retaining potential investors, while bargaining power of marketers will be reduced which would lead to sustainable operation, profitability, and competitive advantage in the next global competition. Based on the survey research of 400 Thai investors, the relationship with the securities marketer, relationship with the securities company and the investor’s satisfaction were found as factors that influence Thai investors’ loyalty to the securities company, and these factors had also high relationship with investors’ loyalty.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Anderson, G. (1998) Customer Satisfaction and Word-of-Mouth, Journal of Service Research, 1(1), 5–17.

    Article  Google Scholar 

  • Beatty, S.E., Mayer, M., Coleman, J.E., Reynolds, K.E., & Lee, J. (1996) Customer-Sales Associate Retail Relationships, Journal of Retailing, 72(3), 223–247.

    Article  Google Scholar 

  • Bendapudi, N., & Berry, L.L. (1997) Customers’ Motivations for Maintaining Relationships with Service Providers, Journal of Retailing, 73(1), 15–37.

    Article  Google Scholar 

  • Berry, L.L. (1995) On Great Service-A Framework for Action, Free Press, New York.

    Google Scholar 

  • Bitner, M.J. (1990) Evaluating Service Encounters: The Effects of Physical Surroundings and Employee Responses, Journal of Marketing, 54(2), 69–82.

    Article  Google Scholar 

  • Bitner, M.J., Brown, S.W., & Meuter, M. L. (2000) Technology Infusion in Service Encounters, Journal of the Academy of Marketing Science, 28, 138–149.

    Article  Google Scholar 

  • Boulding, W., Kalra, A., Staelin, R., & Zeithaml, V. A. (1993) A Dynamic Process Model of Service Quality: From Expectations to Behavioral Intentions, Journal of Marketing Research, 30, 7–27.

    Article  Google Scholar 

  • Chandler, C.H. (1989) Beyond Customer Satisfaction, Quality Progress, 22(2), 30–32.

    Google Scholar 

  • Clark, M., & Baker, S. (2004) Business Success through Service Excellence, Elsevier Butterworth-Heinemann, Amsterdam

    Google Scholar 

  • Dyche, J. (2002) The CRM Handbook: A Business Guide to Customer Relationship Management, Addison Wesley, Boston.

    Google Scholar 

  • Dick, A.S., & Basu, K. (1994) Customer Loyalty: Toward an Integrated Conceptual Framework, Journal of the Academy of Marketing Science, 22, 99–113.

    Article  Google Scholar 

  • Dwyer, F.R., Schorr, P.H., & Oh, S. (1987) Developing Buyer-Seller Relationships, Journal of Marketing, 51(April), 11–27.

    Article  Google Scholar 

  • Ellis, K.L., Lee, J., & Beatty, S.E. (1993). Relationships in Consumer Marketing: Directions for Future Research. In D.W. Cravens & P. R. Dickson (Eds.), 1993 AMA educators’ proceedings: enchancing knowledge development in marketing (pp. 225–230), American Marketing Association, Chicago.

    Google Scholar 

  • Estelami, H. (2000) Competitive and Procedural Determinants of Delight and Disappointment in Consumer Complaint Outcomes, Journal of Service Research, 2(3), 285–300.

    Article  Google Scholar 

  • Farrell, D., & Rusbult, C.E. (1981) Exchange Variables as Predictors of Job Satisfaction, Job Commitment, and Turnover: The Impact of Rewards, Costs, Alternatives, and Investments, Organizational Behavior and Human Performance, 27, 78–95.

    Article  Google Scholar 

  • Fornell, C. (1992) A National Customer Satisfaction Barometer: The Swedish Experience, Journal of Marketing, 56, 6–21.

    Article  Google Scholar 

  • Fornell, C., & Wernerfelt, B. (1987) Defensive Marketing Strategy by Customer Complaint Management: A Theoretical Analysis, Journal of Marketing Research, 24(4), 337–346.

    Article  Google Scholar 

  • Garbarino, E., & Johnson, M.S. (1999) The Different Roles of Satisfaction, Trust and Commitment in Customer Relationships, Journal of Marketing, 63, 70–87.

    Article  Google Scholar 

  • Galbraith, J. R. (2005). Designing the Customer-Centric Organization: A Guide to Strategy, Structure, and Process, Jossey-Bass, San Francisco.

    Google Scholar 

  • Galbraith, J.R. (2002) Designing Organization, Josey-Bass, San Francisco.

    Google Scholar 

  • Ganesan, S. (1994) Determinants of Long-Term Orientation in Buyer- Seller Relationships, Journal of Marketing, 58, 1–19.

    Article  Google Scholar 

  • Gomez-Mejia, L. R. & Balkin, D. B. (2002). Management, Graw-Hill, Boston.

    Google Scholar 

  • Gremler, D.D. (1995) The Effect of Satisfaction, Switching Costs, and Interpersonal Bonds on Service Loyalty. Unpublish Dissertation, Arizona State University.

    Google Scholar 

  • Gronroos, C. (1994) Quo Vadis, Marketing? Toward a Relationship Marketing Paradigm, Journal of Marketing Management, 10, 347–360.

    Article  Google Scholar 

  • Gunnesson, E. (1994) Making Relationship Marketing Operational, International Journal of Service Industry Management, 5(5), 5–20.

    Article  Google Scholar 

  • Gwinner, K.P., Gremler, D.D., & Bitner, M.J. (1998) Relational Benefits in Services Industries: The Customer’s Perspective, Journal of the Academy of Marketing Science, 26(2), 101–114.

    Article  Google Scholar 

  • Hamachek, D.E. (1982). Encounters with the Self, Holt, Rinehart & Winston, New York.

    Google Scholar 

  • Hauser, J.R., & Wernerfelt, B. (1990) An Evaluation Cost Model of Consideration Sets, Journal of Consumer Research, 16, 393–408.

    Article  Google Scholar 

  • Hennig-Thurau, T., & Klee, A. (1997) The Impact of Customer Satisfaction and Relationship Quality on Customer Rentention: A Critical Reassessment and Model Development, Psychology and Marketing, 14(8), 737–764.

    Article  Google Scholar 

  • Hilton, R. W. (2005) Managerial Accounting, McGraw-Hill, Boston.

    Google Scholar 

  • Jacoby, J., & Chestnut, R.W. (1978) Brand Loyalty, John Wiley and Sons, New York.

    Google Scholar 

  • Jones, T.O., & Sasser, W.E. Jr. (1995) Why Satisfied Customer Defect, Harvard Business Review, 73(6), 88–100.

    Google Scholar 

  • Kelley, S.W., & Davis, M.A. (1994) Antecedents to Customer Expectations for Service Recovery, Journal of the Academy of Marketing Science, 22(1), 52–61.

    Article  Google Scholar 

  • Keaveney, S.M. (1995) Customer Switching Behavior in Service Industries: An Exploratory Study, Journal of Marketing, 59(2), 71–82.

    Article  Google Scholar 

  • Kelley, S.W., Hoffman, D.K., & Davis, M.A. (1993) A Typology of Retail Failures and Recoveries, Journal of Retailing, 69, 429–452.

    Article  Google Scholar 

  • Kotler, P. (2000) Marketing Management: The Millennium Edition, Prentice-Hall, New Jersey.

    Google Scholar 

  • Kotler, P., & Armstrong, G. (2004) Principles of Marketing, Pearson Prentice Hall, New Jersey.

    Google Scholar 

  • Lee, J., Lee, J., & Feick, L. (2001) The Impact of Switching Costs on the Customer Satisfaction-Loyalty Link: Mobile Phone Service in France, Journal of Services Marketing, 15(1), 35–48.

    Article  Google Scholar 

  • Levinger, G. (1976) A Social Psychological Perspective on Marital Dissolution, Journal of Social Issues, 32(1), 21–47.

    Article  Google Scholar 

  • Lovelock, C., & Wirtz, J. (2004) Services Marketing: People, Technology, Strategy, Pearson Prentice Hall, New Jersey.

    Google Scholar 

  • McCollough, M.A., & Bharadwaj, S.G. (1992) The recovery paradox: An Examination of Customer Satisfaction in Relation to Disconfirmation, Service Quality and Attribution-Based Theories. In C.T. Allen (Ed.), Marketing Theory and Applications, American Marketing Association, Chicago.

    Google Scholar 

  • McCollough, M.A., Berry, L.L., & Yadav, M.S. (2000) An Empirical Investigation of Customer Satisfaction After Service Failure and Recovery, Journal of Service Research, 3, 121–137.

    Article  Google Scholar 

  • McEwen, W. J. (2005) Married to the Brand: Why Consumers Bond with Some Brands for Life: Lessons from 60 Years of Research into the Psychology of Consumer Relationships, The Gallup Organization, New York.

    Google Scholar 

  • McKean, J. (2002) Customers are People the Human Touch, John Wiley & Sons Ltd, West Sussex.

    Google Scholar 

  • Morgan, R., & Hunt, S. (1994) The Commitment-Trust Theory of Relationship Marketing, Journal of Marketing, 58(3), 20–38.

    Article  Google Scholar 

  • Murphy, J.A., Burton, J., Gleaves, R., & Kitshoff, J. (2006) Converting Customer Value from Retention to profit, John Wiley & Sons Ltd., West Sussex.

    Google Scholar 

  • Newell, F. (2003) Why CRM Doesn’t Work: How to Win By Letting Customers Manage the Relationship, Kogan Page, London.

    Google Scholar 

  • Oliver, R.L. (1997) Satisfaction: A Behavioral Perspective on the Consumer, Erwin/McGraw-Hill, New York.

    Google Scholar 

  • Oliver, R.L. (1999) When customer loyalty? Journal of Marketing (Special issue), 63, 33–44.

    Article  Google Scholar 

  • Parnsoonthorn, K. (2006, May 25) SET to leave rates unchanged through 2010, Knight Ridder Tribune Business News, 1.

    Google Scholar 

  • Ping, R.A. (1993) The Effects of Satisfaction and Structural Constraints on Retailer Exiting, Voice, Loyalty, Opportunism, and Neglect, Journal of Retailing, 69, 320–371.

    Article  Google Scholar 

  • Padungsit, M. (2005). The Stock Exchange of Thailand (SET): past-Present-and Future, Thai Research and Training, Bangkok.

    Google Scholar 

  • Power, C. (1991) Value Marketing: Quality, Service, and Fair Pricing are the Keys to Selling in the’ 90, Business Week, 11, 132–140.

    Google Scholar 

  • Raphel, M., & Raphel, N. (1995) Up the Loyalty Ladder: Turning Sometime Customers into Full-Time Advocates of Your Business, HarperBusiness, New York.

    Google Scholar 

  • Ratchford, B.T. (1982) Cost-Benefit Models for Explaining Consumer Choice and Information-Searching Behavior, Management Science, 28, 197–212.

    Article  Google Scholar 

  • Reichheld, F.F., Markey Jr, R.G., & Hopton, C. (2000) The Loyalty Effect-the Relationship Between Loyalty and Profits, European Business Journal, 12(3), 23–32.

    Google Scholar 

  • Reichheld, F.F. (1993) Loyalty-Based Management, Harvard Business Review, 71(2), 64–74.

    Google Scholar 

  • Reichheld, F.F., & Sasser, W.E. Jr. (1990) Zero Defections: Quality Comes to Services, Harvard Business Review, 68(5), 105–111.

    Google Scholar 

  • Reichheld, F.F., & Schefter, P. (2000) E-Loyalty: Your Secret Weapon on the Web, Havard Business Review, 78(4), 105–113.

    Google Scholar 

  • Reichheld, F.F., & Teal, T.A. (1996) The Loyalty Effect: The Hidden Force behind Growth, Profits and Lasting Value, Harvard Business School Press, Massachusetts.

    Google Scholar 

  • Roos, I. (1999) Switching Processes in Customer Relationships, Journal of Service Research, 1, 68–85.

    Article  Google Scholar 

  • Rusbult, C.E., Zembrodt, I.M., & Gunn, L.K. (1982) Exit, Voice, Loyalty, and Neglect: Responses to Dissatisfaction in Romantic Involvements, Journal of Personality and Social Psychology, 43(6), 1230–1242.

    Article  Google Scholar 

  • Rubult, C.E. (1980) Commitment and Satisfaction in Romantic Associations: A Test of the Investment Model, Journal of Experimental Social Psychology, 16, 172–186.

    Article  Google Scholar 

  • Schoenbachler, D. D., Gordon, G. L., & Aurand, T. W. (2004) Building Brand Loyalty through Individual Stock Ownership, Journal of Product and Brand Management, 13(7), 488.

    Article  Google Scholar 

  • Selden, L., & Colvin, G. (2003) Angle Customers and Demon Customers, Portfolio, New York.

    Google Scholar 

  • Smith, A., & Bolton, R. (1998) An Experimental Investigation of Customer Reactions to Service Failure and Recovery Encounter, Paradox or Peril? Journal of Service Research, 1(1), 65–81.

    Article  Google Scholar 

  • Smith, S., & Wheeler, J. (2002) Managing the Customer Experience: Turning Customers into Advocates, Prentice Hall-Financial Times, London.

    Google Scholar 

  • Stigler, G.J. (1961) The Economics of Information, Journal of Political Economy, 69, 213–225.

    Article  Google Scholar 

  • Suwannachot, T. (2001) Theories and Concepts of Sociology, National Institute of Development Administration, Bangkok.

    Google Scholar 

  • Swan, J.E., & Combs, L.J. (1976) Product Performance and Consumer Satisfaction: A New Concept. Journal of Marketing, 4(April), 25–33.

    Article  Google Scholar 

  • Thailand Securities Institute. (2003) Fundamental Knowledge of Capital Market, Sukhumvit Media, Bangkok.

    Google Scholar 

  • The Securities Exchange Commission (SEC). (2006) Capital market index data: Investor, URL http://www.sec.or.th/th/infocenter/stat/inc/equity5.ppt.

    Google Scholar 

  • The Securities Exchange Commission (SEC). (2006) Securities And Derivative Business; Securities Brokerage Information, URL http://capital.sec.or.th/webapp/th/infocenter/intermed/loc/searchloc.php?ref_id=139.

    Google Scholar 

  • The Securities Exchange Commission (SEC). (2006). Capital market Index Data: Investor, URL http://www.sec.or.th/th/infocenter/stat/inc/equity5.ppt.

    Google Scholar 

  • The Securities Exchange Commission (SEC). (2006). Securities and Derivative Business; Securities Brokerage Information. URL http://capital.sec.or.th/webapp/th/infocenter/intermed/loc/searchloc.php?ref_id=139.

    Google Scholar 

  • Tse, D.K., Nicosa, F.M., & Wilton, P.C. (1990) Customer Satisfaction as a Process, Journal of Psychology and Marketing, (Fall), 177–193.

    Google Scholar 

  • The Stock Exchange of Thailand (SET). (2006) History of the Stock Exchange of Thailand, URL http://www.set.or.th/en/about/history/history_p1.html.

    Google Scholar 

  • Westbrook R. A. (1980) Intrapersonal Affective Influences on Consumer Satisfaction with Products, Journal of Consumer Research, 7, 49–54.

    Article  Google Scholar 

  • Weun, S., & Trocchia, P. J. (1996). Effects of Relationship Quality on Attribution in the Case of Failure of Service Failure in Enhancing Knowledge Development in Marketing, In C. Droge & R. Calantone, (Eds.), AMA Educator’s Proceedings (pp. 224–230), American Marketing Association, Chicago.

    Google Scholar 

  • Wilson, D. (1995) An Integrated Model of Buyer-Seller Relationships, Journal of the Academy of Marketing Science, 23(4), 335–45.

    Article  Google Scholar 

  • Winstead, K.F. (1997) The Service Experience in Two Cultures: A Behavioral Perspective, Journal of Retailing, 73(3), 337–360.

    Article  Google Scholar 

  • Yamane, T. (1967) Elementary Sampling Theory, Prentice Hall, New Jersey.

    Google Scholar 

  • Yi, Y. (1990) A Critical Review of Consumer Satisfaction. In V. A. Zeithaml (Ed), Review of Marketing (pp. 68–133), American Marketing Association, Chicago.

    Google Scholar 

  • Zeithaml, V.A., Parasuraman, A., & Malhotra, A. (2000) A Conceptual Framework for Understanding E-Service Quality: Implications for Future Research and Managerial Practice, Cambridge, MA: Marketing Science Institute, Report No. 00-115.

    Google Scholar 

  • Zeithaml, V.A., Berry, L.A., & Parasuraman, A. (1993) The Nature and Determinants of Customer Expectations of Service, Journal of Academy of Marketing Science, 21(1), 1–12.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. School of Management, Shinawatra University, 1010 Vapravadi-Rangsit Rd., Jatujak, Bangkok, Thailand, 10900

    Opas Piansoongnern & Pacapol Anurit

Authors
  1. Opas Piansoongnern
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Pacapol Anurit
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Opas Piansoongnern.

Additional information

Opas Piansoongnern is PhD candidate and instructor at School of Management, Shinawatra University, Thailand. His core research areas of interest are talent management, entrepreneurship development, managing high performance work teams, and marketingstrategy. He used to work as economic journalist and investment consultant at reputable financial newspaper and securities company in Bangkok during 2000–2007. Much interdisciplinary research of him has been accepted and published in leading refereed academic journals such as European Journal of Economics, Finance, and Administrative Sciences and European Journal of Social Sciences. He can be reached at opasplk@gmail.com

Dr Pacapol Anurit is an Assistant Professor at School of Management, Shinawatra University, Thailand. He received his BA in International Business from Richmond University, the UK, MA in computer resources and information management as well as MBA in general business from Webster University, the UK, and PhD in consumer behavior from Middlesex University Business School. His key teaching as research discipline include talent management, research methodology, globalization, creativity and innovation management, human resources management, and consulting management. Much interdisciplinary research of him has been accepted and published in leading refereed academic journals such as Journal of Global Business Review and European Journal of Social Sciences. He can be reached at pacapol@shinawatra.ac.th

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Piansoongnern, O., Anurit, P. A Global Competitiveness Study of Thai Securities Industry: A Case Study of Factors Influencing Investors’ Loyalty to Securities Companies in Bangkok. Global J. Flexible Syst. Manage. 8, 1–16 (2007). https://doi.org/10.1007/BF03396516

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF03396516

Keywords

Search

Navigation