An Analysis of the Credit Union’s Use of Craig’s Commitment Building Measures

Noreen Byrne and Olive McCarthy

Within an increasingly competitive financial services market, huge resources are pumped into the creation and maintenance of customer loyalty. Within a member-owned co-operative such as a credit union, member loyalty is of even greater importance because it is reliant on its members for its continued existence. This paper focuses on commitment which is the process whereby the end product of loyalty is created. Various writers have labelled three different types of commitment: utilitarian which is based on a rational calculation of costs and benefits; affective meaning an emotional attachment to the organisation; and finally ideological which revolves around attachment to an ideal or vision which transcends the organisation. A co-operative should attempt to build all three types of commitment. This study examines four Irish credit unions in terms of their use of these commitment building measures. It was found that the measures used by Irish credit unions build utilitarian commitment more so than affective or ideological commitment.