An empirical investigation of the relative effect of trust and switching costs on service loyalty in the UK retail banking industry

The crisis in the UK financial services industry has led to retail banking customers treating transactions with growing scepticism. Retail banks are having to work very hard to regain customer trust. Despite recent research in marketing that acknowledges the importance of service loyalty to service firms, studies that have examined the relative effects of trust and the different types of switching costs on attitudinal and behavioural loyalty are scant. Therefore this article aims to build a model to examine the strength of the relationships between these constructs. Using survey data collected from a convenience sample of 290 retail banking customers in the United Kingdom, the article reveals that the main drivers of attitudinal loyalty are trust and relational switching costs. In contrast, the main drivers of behavioural loyalty are trust, relational switching costs and attitudinal loyalty. Interestingly, financial and procedural switching costs exert no significant effect on either attitudinal or behavioural loyalty. Trust and relational switching costs exert a stronger effect on attitudinal than behavioural loyalty.     

Social isolation and social anxiety as drivers of generation Z's willingness to share personal information on social media

Generation Z's (gen z) sharing of personal information on social media is a growing phenomenon with significant ramifications. Existing research, however, focuses on examining the role of social and/or psychological factors and fails to consider how and when social, psychological, and organizational factors affect gen z's willingness to share personal information on social media. To fill this gap, we propose a conceptual model based on the tenets of sociometer theory, to understand the dynamics of gen z's willingness to share personal information while considering its process and boundary conditions. Using a sequential multi-study design, we conducted an experiment followed by a survey to test our hypotheses using data collected from gen z in India. Our findings show that when gen z feels socially isolated/anxious, they are more likely to share personal information on social media. The effect of social isolation on sharing of personal information increases when gen z fear that they are missing out on the rewarding experiences others are having, are engaged in repetitive negative thoughts and perceive their firm's privacy policy as transparent and ethical. Our findings provide a better understanding of why, how, and when gen z's are willing to share personal information on social media. We extend existing limited research on the psychological aspects of digital natives' interaction with modern technologies. Our results equip social media marketing and brand managers with the knowledge they need to increase gen z's willingness to share personal information.     

Encouraging male participation in cancer resource centers

ABSTRACT

This research investigates reasons why male cancer patients may refrain from patronizing cancer resource centers. By drawing upon a wide range of research from the social sciences and visual design literatures, the authors put forth original propositions that suggest how cancer resource center managers can manipulate a center's servicescape, or built environment, as well as its service offerings, website design, and printed communications to attract more male cancer patients. Despite the inherent challenges of discussing gender in cancer care and limitations to its generalizability in all settings, this research reveals that differences exist regarding the way men and women respond to cancer resource center marketing initiatives. Given the profound benefits that cancer resource centers often assume in a cancer patient's life, including a decreased mortality rate, we encourage service marketing and public health researchers, as well as cancer resource center directors, to consider the propositions put forth in this paper.     

A critical examination of service loyalty measures

Abstract

Service loyalty is attracting growing interest as a result of the important role that services play in today’s global economy. Advances in technology have increased the demand for a services-based economy and prompted a shift from a product-centred logic to a service-centred logic. Despite general agreement between researchers and practitioners of the strategic importance of service loyalty, and growing acceptance of a dynamic or processual perspective, scales used to measure the dynamic view of service loyalty can be criticised for their lack of methodological robustness. This paper contributes both theoretically and practically by critically examining these service loyalty scales and proposing a new multi-item scale based on Oliver’s (1997) conceptualisation using a mixed-method study. Qualitative and quantitative data were collected from UK retail bank customers using in-depth interviews and an interviewer-administered survey. A two-step structural equation modelling strategy was used to validate the measurement and structural models. The results provide support for a four-dimensional scale of service loyalty. This study provides service researchers and managers with a better understanding of service loyalty and presents them with a robust scale for its measurement, in turn improving their ability to draw accurate conclusions.     

An integrated analysis of the association between accrual disclosure and the abnormal accrual anomaly

We find no evidence of accrual mispricing for firms that disclose accrual information at earnings announcements. For these firms, the market differentiates the discretionary from the nondiscretionary components of the earnings surprise. In contrast, the market fails to distinguish between the discretionary and the nondiscretionary components of the earnings surprise for firms that do not disclose accrual information at earnings announcements. These firms experience some stock price correction around the filing date. However, the correction is only partial, resulting in a post-filing drift.

Diversity in the regulation of Islamic Financial Institutions

More than 200 Islamic Financial Institutions (IFIs) are reported to have total combined assets in excess of US$ 200 billion with an annual growth rate estimated between 10 and 15%. The regulatory regime governing IFIs varies across countries. International organizations have been established to set standards that would strengthen and eventually harmonize prudential regulations as they apply to IFIs. The paper contributes to the discussion on the nature of the prudential standards to be developed. It clarifies risks IFIs are exposed to and the type of regulation that would help to manage them. It considers that the industry is still evolving with an anticipated convergence of the practice of Islamic financial intermediation with its conceptual foundations. Accordingly, the paper contrasts the risks and regulation that would be needed in the case of Islamic financial intermediation operating according to core principles and current practice. Implications for approaches to capital adequacy, licensing requirements and reliance on market discipline are outlined. The paper suggests an organization of the industry that would allow it to develop in compliance with its principles and prudent risk management and to facilitate its regulation.     

Bankruptcy outcomes: Does the board matter?

We examine the association between board composition and bankruptcy outcomes. Preliminary analyses provide no evidence that the proportion of outside directors is significantly associated with the likelihood that a Chapter 11 firm liquidates. Further analyses indicate, however, that the relation between the proportion of outside directors and bankruptcy outcomes is a function of the outside directors' ownership. More specifically, we find that the association is positive when outside director ownership is low and negative when it is high. The overall evidence supports the notion that a one-size-fits-all approach to corporate governance is likely to result in suboptimal board structures and hinder firms' strategies for dealing with poor performance.     

Audit committee financial expertise,corporate governance,and the voluntary switch from auditor-provided to non-auditor-provided tax services

A prime objective of the SOX is to safeguard auditor independence. We investigate the relation between audit committee quality, corporate governance, and audit committees' decision to switch from permissible auditor-provided tax services. We find that firms with more independent boards, audit committees with greater accounting financial expertise, higher stock ownership by directors and institutions, that separate the CEO and Chairman of the board positions, and with higher tax to audit fee ratios are more likely to switch to a non-auditor provider. Further, we document that firms are more likely to switch prior to issuing equity. We find no evidence that broad financial expertise on audit committees is related to the switch decision, suggesting that the SEC's initial narrow definition of expertise is more consistent with the objective of the SOX. Overall, our results suggest that accounting financial expertise and strong corporate governance contribute to enhanced audit committee monitoring of auditor independence.     

Four decades of negative word-of-mouth and negative electronic word-of-mouth: A morphological analysis

Customers voice their negative brand experiences to their family and friends in the form of negative word-of-mouth (NWOM). Web 2.0 enables the sharing of NWOM in electronic format on various social media sites, online customer review forums, and blogs, which is known as negative electronic word-of-mouth (NeWOM). Researchers need to study the spread of NWOM/NeWOM to prevent adverse consequences for companies and suggest an optimal response for its redressal. Existing literature review studies have focused on word-of-mouth (WOM) and electronic WOM (eWOM) and have considered both positive and negative WOM and eWOM concurrently. Past literature reviews have captured the breadth of the WOM domain, ignoring the depth. This research article contains a review of 282 journal papers capturing the depth of the extant literature by focusing solely on ‘negative’ WOM and eWOM (NWOM and NeWOM), and presents a broad view of the NWOM and NeWOM domains using morphological analysis (MA). This will help to conceptualize and categorize the existing state-of-the-art literature into broad dimensions and identify future research opportunities. The MA framework helps to bifurcate this literature into the following four dimensions: (i) nomenclature of NWOM and NeWOM, (ii) antecedents of NWOM/NeWOM, (iii) impacts of NWOM/NeWOM, and (iv) prevention and recovery response to NeWOM. Further dissection of these four dimensions leads to 15 sub-dimensions and 217 variants. Combinations of the 217 variants enable the identification of 550 novel future research opportunities in the area of NWOM and NeWOM.