A field study of customers’ switching behavior for bank services

This research paper makes three important contributions with managerial implications concerning the issue of bank service switching behavior. First, it identifies four overall dimensions of customer satisfaction with bank services. These are personnel related considerations, financial considerations (interest earnings and interest payments), environment related considerations (atmospherics), and convenience related considerations (ATM and hours). Next, we develop and test some hypotheses pertaining to the relationship between customer satisfaction and bank service switching behavior as it is mediated by the importance of a particular bank service to a particular customer and by the nature of competitive offerings for different types of banking services available from other banks. Based on the empirical results of a large scale field study, we provide several theoretical and managerial implications.     

Service encounter in multi-channel distribution context: virtual and face-to-face interactions and consumer satisfaction

This article studies service quality and customer satisfaction in a context of multi-channel service distribution. The objective is to identify quality factors influencing the overall satisfaction of a multi-channel customer. A quantitative study was conducted among 445 customers mainly targeted on users of the traditional physical channel and online channel of a French retail bank. Using structural equation models with AMOS, the results show that perceived service quality in the virtual channel, perceived service quality in the traditional channel, and multi-channel integration quality have a positive influence on the overall satisfaction of the multi-channel customer.     

A threshold model for respondent heterogeneity

Continuous models of respondent heterogeneity assume the existence of a response function where variables of interest are continuously related to explanatory variables. In many situations this assumption may not be true. In this paper we propose an approach of modeling respondent heterogeneity that identifies abrupt changes in the distribution of response coefficients around a threshold specification. Our model differs from traditional threshold models by introducing the threshold effect to describe across-unit behavior as opposed to within-unit behavior. We illustrate our proposed Bayesian threshold model for survey data from a large national retail bank that examines the effects of service wait times on customer satisfaction. We find evidence of a threshold effect where long in-process wait times are associated with bank branches characterized by weak associations between service quality drivers and overall perceptions of service quality. Branches with wait times below the threshold are found to have much stronger associations.     

Operations in banking: the service quality and effects on satisfaction and loyalty

This paper studies the service quality provided by the banks. The objectives are (i) to identify which aspects of the transactions carried out by the banks are important for the service quality perceived by the customers, taking into account some aspects that are sometimes ignored (online channels) and (ii) to observe how service quality influences customer satisfaction and how customer satisfaction affects the loyalty towards the bank. Using a factor analysis, the research identifies the operative, physical, new technologies and human factors. Next, using structural equations models with AMOS, the results show an influence of the operative aspects and the new technologies on service quality, as well as the confirmation of quality as a precedent to customer satisfaction, and how such satisfaction influences on customer's loyalty towards the bank.     

When do AI chatbots lead to higher customer satisfaction than human frontline employees in online shopping assistance? Considering product attribute type

The increasing adoption of AI chatbots in online shopping assistance, as a complement or substitute for human frontline employees (HFLEs), leads to the question whether HFLEs perform better than AI service robots and why. From the perspective of product attribute type (experiential/functional) and focusing on customer satisfaction, this study explores how the impact of service agent on customer satisfaction varies along with product attribute type. A scenario-based experiment was designed and completed by 567 participants. Although HFLEs lead to higher customer satisfaction when the product attribute is experiential, AI chatbots perform better than HFLEs when the product attribute is functional. We make use of perceived information quality, perceived waiting time, and positive emotions, three determinants of customer satisfaction, to explain the variation of the role of different service agent types. The findings offer useful implications for companies when selecting service agent types in online shopping assistance.     

“Towards a co-creation framework in the retail banking services industry: Do demographics influence?”

Although many firms profess to adopt a customer-centric approach many are yet to embrace the notion that value is not solely created within the boundaries of the firm, that it is created co-jointly with outside parties. As such, value co-creation has increasing importance in modern marketing, impulsed by Service-Dominant Logic. While co-creation is a hot-topic in the marketing literature, services marketing literature recognizes the impact of demographic characteristics in consumer behavior. However, literature analysing the effects of demographics in co-creations models is very scarce.Therefore, the aim of this paper is to examine a set of outcomes of co-creation (satisfaction, loyalty and WOM) from a customer perspective. More, this research also analyses the potential moderating effect of demographic characteristics such as gender and age in this co-creative framework.The results show that co-creation directly affects customer satisfaction, customer loyalty and WOM. Co-creation also results in increased levels of customer satisfaction, which in turn mediates the effect of co-creation on customer loyalty and positive WOM. Data also reveal different patterns of behavior depending on gender and age.This paper contributes to the understanding of co-creation from a customer viewpoint. Firms should strive to foster co-creation initiatives as this can lead to increased levels of customer satisfaction, more loyal customers and the possibility of attracting new customers through positive WOM by current customers. Customers databases must be segmented for higher levels of marketing campaigns efficiency.     

Exploring manager’s perspective of service quality strategies in Malaysian Banking Industry

In service industry, the subject of service quality remains crucial as business strive to maintain a comparative advantage in the marketplace. In aftermath of globalization, the operating environment for banking industry has become more dynamic and competitive. Banks have evolved to become diversified financial providers instead of traditional banking-only service providers. With bank placing emphasis on a mutually beneficial bank–customer relationship, customer loyalty must be pursued through repeat purchases. Central to achieving this is often the quality of services offered by the bank should satisfy the customer’s needs. This article attempts to identify any service gaps in Malaysian banking industry and to recommend effective strategies to close these service gaps from bank mangers’ and executives perspectives based on GAPs Model of Service Quality (GAPs Model). Using qualitative data collected from interviews with 30 bank managers and executives, this article provides effectives strategies to close each of the gaps in GAPs Model. It is hoped that the empirical evidences and recommendations provided in this article shed some light to management of banks to improve upon their customer service quality in order to benefit from customer satisfaction, customer loyalty and other behavioural outcomes which will lead to greater competitive advantage and profitability to the banks concerned.     

Recommendation and repurchase intention thresholds: A joint heterogeneity response estimation

Recommendation and repurchase intentions are the two most important dimensions of customer loyalty. Latent satisfaction thresholds at the individual level, if obtained, can function as an additional valid and effective criterion for satisfaction ratings in determining customer loyalty. To improve the existing estimation methodology on satisfaction thresholds, this paper proposes a joint heterogeneity response model to simultaneously calibrate the individual-level recommendation and repurchase thresholds through a joint specification over the heterogeneity. It conducts a simulation study to examine the parameter recovery and model validation. This paper further applies the method to two different datasets of satisfaction surveys in the automotive industry, with the first involving owners of vehicles of a single brand, and the second involving owners of vehicles of multiple brands. The results from the two empirical studies show that the proposed model consistently outperforms the two competing models and the extant approach. In addition, the results provide different insights into enhancing customer loyalty by using a new segmentation scheme based on estimated satisfaction thresholds.     

The role of customer satisfaction in enhancing customer loyalty in Malaysian Islamic banks

This study examines the role of customer satisfaction in enhancing the loyalty of Muslim and non-Muslim customers in the Malaysian Islamic banking industry. Respondents are the customers (Muslim and non-Muslim customers) visiting the bank counters and have an account with Islamic banks. A total of 660 questionnaires were distributed, and 440 were returned. The results indicate that customer satisfaction has a statistically significant positive effect on customer loyalty and intentions to switch for Muslim and non-Muslim customers. However, there were significant differences in the effects of customer satisfaction on customer loyalty and intention to switch for Muslim and non-Muslim customers. The effect of customer satisfaction on customer loyalty and intention to switch is greater for the non-Muslim than the Muslim customers.     

Does the length of a customer–provider relationship really matter?

This study examines both a moderator and a mediator of perceived service quality and payment equity as they relate to customer loyalty in the banking industry. Through the moderating factor, the length of the customer–bank relationship, this study builds a conceptual framework for distinguishing between transactional- and relationship-oriented customers and provides an empirical analysis by using structural equation modelling. The empirical findings of this study, the result of the examination of 610 banking customers, showed that different lengths of the customer–bank relationship form loyalty from different variables and from a different path. For transactional-oriented customers, loyalty was built through the achievement of overall customer satisfaction; whereas for relationship-oriented customers, loyalty was built through the establishment of trust. Suggestions and limitations based on the finding are also discussed.     

Goal interdependence and quality in services marketing

Service quality is considered an important competitive edge because it generates repeat sales, positive word of mouth, customer loyalty, and competitive product differentiation. This study examines the impact of a company's cooperative or competitive orientation and the service provider's warm or cold communication style on customer evaluation of service quality. Results from 83 participants in a simulated bank interview experiment indicate that when the bank communicated a cooperative orientation they perceived it as offering a higher-quality service than when it had competitive or individualistic goals. The warmth of the service personnel contributed to high-quality service, liking the bank representative, future confidence in dealing with the bank, satisfaction with the interview, and willingness to be interviewed by the bank representative in the future. These results were interpreted as suggesting that companies who can demonstrate a strong cooperative orientation toward customers and whose service providers demonstrate warmth will be considered to offer high-quality services. © 1995 John Wiley & Sons, Inc.     

Measuring Satisfaction with Services when the Customer Is Not the Consumer

Typically, nonprofit and public institutions offer their customers services as opposed to manufactured, marketed, tangible products. Marketers in the not-for-profit and public sectors must be aware of the ways in which traditional, product-bound marketing tools must be changed to accommodate the unique nature of services. This paper considers how measures of customer satisfaction are inadequate to capture satisfaction with services especially in the situation typical to nonprofits where the customer (purchaser) of the service, is a different person from the consumer (user) of the service. This customer-consumer differentiation is necessary because it appears that in the case of high involvement services in which the customer is not the consumer, inflated satisfaction ratings occur when conventional measures are applied. It is argued that these ratings may be caused by a desire to avoid dissonance or by a faulty attribution process, but whatever their cause, new measures of satisfaction need to be developed to accommodate the special nature of these services.     

Ignoring Your Best Customer?

Abstract

Many organizations devote considerable amounts of money and human resources to develop systems aimed at improving customer retention and profitability. The conventional wisdom is that if retaining the most profitable customers is a good way to increase profitability, then allocating resources to increase the satisfaction of those customers has to be a great objective. However, managers do not observe clear link between satisfaction, retention and profitability. The reason is that different customers have different preferences for convenience as well as different costs associated with switching service providers. These preference and cost heterogeneities have important implications for how companies should target their customer service efforts.

In this paper, we adopt a latent class model to examine the interrelationship amongsatisfaction, retention and profitability. Applying the model to a data of customer satisfaction, self-reported switching propensity, and profitability provided to us by a large Midwestern bank, we make normative statements about which customers are the most criticalones for the company to satisfy and how to satisfy them. The results of this research help to explain why managers have been frustrated by the apparent lack of actionable information present in customer satisfaction data and points to more intelligent ways to use this data.     

Relating strategic market orientation and market performance: role of customer value types

A service provider achieves competitive advantage by configuring appropriate strategic orientation and customer value type. This paper addresses three important issues: (i) which customer value type (economical, relational or technical) is important for bank customers? (ii) which strategic market orientation (customer or competitor) helps in achieving the desired value type? and (iii) which value type significantly predicts market performance? We propose that a strategic market orientation pursued by a firm shall influence the customer value it intends to offer so as to maximize the market performance. Using data collected from 538 bank customers, this study reveals that when there is a perfect match between strategic market orientation and value being perceived by its customers, a firm shall achieve strategy-value fit and realize optimal market outcomes in the form of customer satisfaction, acquisition, retention, cross-selling, and up-selling. Furthermore, a bank shall realize maximum level of market performance if it pursues both customer and competitor orientation and endeavors to deliver technical/functional value to its target customers. The paper concludes with managerial implications and future research directions.     

The behavioural sequence of the financial services industry in Taiwan: Service quality,relationship quality and behavioural loyalty

This study develops and empirically tests a model for examination of the relations among service quality scales, relationship bonding tactics, customer satisfaction, trust and commitment, and customer behavioural loyalty in a relationship marketing system. This paper aims to test the relationship between perceived service quality satisfaction and relationship intentions, or, in other words, whether or not consumers will consider building long-term relationships with service providers on the basis of a single instance of perceived service quality. Based on three groups of samples from XYZ bank, one of the most famous banks providing merchant banking services in Taiwan, the findings suggest that financial products with different product attributes need different kinds and levels of service and relationship investment. The findings also suggest that there does exist a positive relationship between service quality satisfaction and perceived relationship investment.     

Customer Satisfaction with Retail Banking Services in Ghana

Recent studies indicate high competitiveness of the Ghanaian banking industry, making it difficult for banks to satisfy and retain customers. However, little empirical knowledge exists on the determinants of customer satisfaction toward the services delivered by the banks. This article reports a study of the determinants of customer satisfaction of retail bank services in Ghana. An extensive review of the extant literature was used to identify the theoretical determinants of customer satisfaction in retail banking and their measurement scales. These were adapted to build a conceptual framework for the empirical investigation conducted. Data were collected using a questionnaire administered through personal interviews to 650 customers of retail banks, and the results were factor analyzed and regressed. The empirical results indicated that relational, core, and tangible dimensions of service were positively associated with customer satisfaction in retail banks in Ghana. The study discusses the strategic implications of the findings for the management of customer satisfaction for retail banks operating in Ghana. © 2014 Wiley Periodicals, Inc.     

Identifying multi-channel value co-creator groups in the banking industry

The purpose of this paper is providing a value co-creation management framework in the banking industry using the data analysis. Moreover, a multi-channel segmentation approach will be developed in order to identify customer segments based on the use of each channel. Managing value co-creation can be defined as determining the channel that may be used by the customer and the kinds of encounters that lie in these channels to have different impacts on the customer for various types of encounters. The model is built on the basis of the related literature and the collaboration of a Customer Relationship Manager in a large bank in Iran. Then, a multi-channel segmentation model is developed based on the RFM variables of the five banking channels for each customer. Next, about 11,000 customers of the bank is segmented by comparing the k-means and DBSCAN algorithms. Finally, by adapting customer segments on the value co-creation framework, three general groups are identified based on the type of encounter that lies in each channel. Moreover, twenty-seven small groups are recognized based on the desirability of the customer use of the channels.     

基于APH的Web组合服务研究

本文利用AHP理论对web服务进行建模,定义QoS的四维属性,利用QoS综合值评价Web服务的质量,并根据不同用户目标需要来替换或增减属性指标,能够找出一组最符合用户需求的服务组合,提高了用户的满意度。最后通过实例计算,证明模型有效。     

基于重要性的顾客满意度指数的测评

顾客满意度自20世纪80年代从美国引用到中国以来,在中国得到了快速推广和应用。目前学术界根据顾客满意度指数的基本概念,分析了顾客满意度指数测评指标体系,提出了基于重要性的顾客满意度指数的测评方法。该方法根据模糊聚类技术与粗糙集中的相对正域理论,从测评数据中根据属性重要性确定各属性的权重,依此来计算顾客满意度指数。