Abstract
In the highly competitive and homogeneous pure Internet banking sector, customer experience is pivotal for differentiation. Prior research remains limited to static analyses, failing to explain dynamic loyalty transitions. This study thus investigates how experience dimensions drive loyalty shifts in pure Internet banking and proposes segment-specific management strategies. Employing an explanatory sequential design (ESD) with LINE Bank (74.3% market share) as a case, we integrated quantitative structural equation modeling (SEM) of High-Medium, High-Low, and Medium-Low Net Promoter Score (NPS) groups (n = 370) with six in-depth interviews. Results reveal that functional value is the most stable loyalty driver across segments (β = 0.407-0.481), while service (β = 0.289-0.367 for functional/emotional value) and communication (β = 0.373-0.441 for spiritual value) constitute universal experience foundations. Spiritual value buffers attrition in unstable groups (H-L: β = 0.417; M- L: β = 0.310) but operates implicitly—users rarely articulate brand alignment despite behavioral impacts. Critically, loyalty demonstrates asymmetric dynamics: it builds increment ally through accumulated positive experiences but collapses rapidly from single failures (e.g., transaction errors). This underscores the necessity for "experience continuity" and "fault tolerance" in loyalty management. We conclude that pure Internet banks should prioritize service reliability and transparent communication over emotional features, implementing segment-tailored strategies: functional value reinforcement for at-risk users and spiritual value activation for low-NPS groups.
Keywords
Customer loyalty; Net Promoter Score; Perceived value; Experience Domains
DOI
https://doi.org/10.21606/iasdr.2025.810
Citation
Wu, Q., Lien, Y., Tang, H.,and Lai, M.T.(2025) Exploring the Dynamic Path of Shifting Customer Loyalty Across NPS Groups Driven by Experience and Value: The Case of Pure Internet Banking, in Chang, C.-Y., and Hsu, Y. (eds.), IASDR 2025: Design Next, 02-05 December, Taiwan. https://doi.org/10.21606/iasdr.2025.810
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Conference Track
Track 10 - Design Practices & Impacts
Exploring the Dynamic Path of Shifting Customer Loyalty Across NPS Groups Driven by Experience and Value: The Case of Pure Internet Banking
In the highly competitive and homogeneous pure Internet banking sector, customer experience is pivotal for differentiation. Prior research remains limited to static analyses, failing to explain dynamic loyalty transitions. This study thus investigates how experience dimensions drive loyalty shifts in pure Internet banking and proposes segment-specific management strategies. Employing an explanatory sequential design (ESD) with LINE Bank (74.3% market share) as a case, we integrated quantitative structural equation modeling (SEM) of High-Medium, High-Low, and Medium-Low Net Promoter Score (NPS) groups (n = 370) with six in-depth interviews. Results reveal that functional value is the most stable loyalty driver across segments (β = 0.407-0.481), while service (β = 0.289-0.367 for functional/emotional value) and communication (β = 0.373-0.441 for spiritual value) constitute universal experience foundations. Spiritual value buffers attrition in unstable groups (H-L: β = 0.417; M- L: β = 0.310) but operates implicitly—users rarely articulate brand alignment despite behavioral impacts. Critically, loyalty demonstrates asymmetric dynamics: it builds increment ally through accumulated positive experiences but collapses rapidly from single failures (e.g., transaction errors). This underscores the necessity for "experience continuity" and "fault tolerance" in loyalty management. We conclude that pure Internet banks should prioritize service reliability and transparent communication over emotional features, implementing segment-tailored strategies: functional value reinforcement for at-risk users and spiritual value activation for low-NPS groups.