Building customer loyalty in retail banking: a serial-mediation approach

2019 ◽  
Vol 38 (2) ◽  
pp. 456-484 ◽  
Author(s):  
Pallavi R. Kamath ◽  
Yogesh P. Pai ◽  
Nandan K.P. Prabhu
Keyword(s):  
Customer Satisfaction ◽  
Brand Equity ◽  
Customer Loyalty ◽  
Family Income ◽  
Customer Experience ◽  
Retail Banking ◽  
Equation Modeling ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to advance research on the relationship between customer experience and customer loyalty by exploring the serially mediating roles of brand equity and customer satisfaction and the moderating roles of age, gender, education and family income in the retail banking industry. Design/methodology/approach A total of 500 responses of retail banking customers were used to test the model using the partial least squares structural equation modeling approach. Advanced statistical techniques, such as importance-performance map analysis and a joint application of FIMIX-PLS and PLS-POS, were used to gain new insights. Findings The study highlighted that the relationship between customer experience and loyalty is serially mediated by brand equity and customer satisfaction. Age, gender and education were found to be significant moderators in the customer experience–loyalty relationship. Age and gender were found to be significant moderators in the brand equity–loyalty relationship. Practical implications The study strongly suggests that practitioners not only focus on delivering exceptional customer experiences but also on providing leverage brand equity and satisfaction to build customer loyalty. Practitioners should focus on training their front-line employees to improve the quality of their behavior and relations with customers and thereby build customer loyalty. Originality/value To the authors’ knowledge, this is the first study to explore the mediating role of several variables sequentially and the moderating role of customer demographics in the customer experience–customer loyalty relationship.

scholarly journals Service quality, religiosity, customer satisfaction, customer engagement and Islamic bank’s customer loyalty

2019 ◽  
Vol 11 (6) ◽  
pp. 1691-1705 ◽  
Author(s):  
Abror Abror ◽  
Dina Patrisia ◽  
Yunita Engriani ◽  
Susi Evanita ◽  
Yasri Yasri ◽  
...  
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Customer Engagement ◽  
Equation Modeling ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
Moderating Role

Purpose The purpose of this study is to investigate the influential factors of customer loyalty to Islamic banks, namely, service quality, customer satisfaction, customer engagement and religiosity. Design/methodology/approach This study is a survey of 335 Islamic bank customers in West Sumatra, Indonesia. This research deployed purposive sampling and analyzed the data by using covariance-based structural equation modeling. Findings Service quality has a positive and significant impact on customer satisfaction. Religiosity has a significant and negative moderating impact on the service quality–customer satisfaction relationship. Service quality has no significant influence on customer loyalty. Customer satisfaction is a significant antecedent of customer engagement and loyalty. Finally, customer engagement has a significant and positive effect on customer loyalty. Research limitations/implications This study is a combination of cross-sectional and a single-country case. Accordingly, the results may not be representative of other countries. Similar studies in longitudinal data collection are conducted in other countries (e.g. ASEAN countries), which would therefore be worthwhile. Some antecedents of customer loyalty have been neglected in this study (e.g. customer value co-creation and customer commitment); hence, the future study may investigate those factors. Practical implications By considering these Islamic banks’ antecedents, the Islamic banks might enhance their customer loyalty. Also, this study has revealed the moderating role of religiosity in a loyalty relationship. Therefore, it will give insights for the Islamic bank managers in decision-making. Originality/value This study has revealed the moderating role of religiosity on the link between service quality and customer satisfaction in Islamic banks, which is, to the authors’ knowledge, neglected in the previous studies. The customers with high religiosity will have a higher standard of satisfaction and demand a better service quality than the customers with low religiosity. This study has also examined the relationships between service quality, religiosity, customer satisfaction, customer engagement and loyalty as a whole, which have been limited previously.

The effect of experience quality on customer perceived value and customer satisfaction and its impact on customer loyalty

2020 ◽  
Vol 32 (6) ◽  
pp. 1525-1540
Author(s):  
Andriani Kusumawati ◽  
Karisma Sri Rahayu
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Perceived Value ◽  
Statistical Technique ◽  
Equation Modeling ◽  
Content Type ◽  
Customer Perceived Value ◽  
Perceived Values ◽  
The Relationship

PurposeTo test the effect of experience quality on customer perceived value and customer satisfaction and its impact on customer loyalty to the visitors of natural nuanced outdoor cafés in the hilly areas of Joyo Agung, Malang.Design/methodology/approachThis study uses four variables, namely experience quality, customer perceived value, customer satisfaction, and customer loyalty. The population used in this research was all customers or visitors who buy and enjoy the products and services provided by the natural outdoor cafés in Malang. This study used structural equation modeling (SEM) as inferential statistical technique.Findings1) Quality experience has a significant effect on customer perceived value, customer satisfaction, and customer loyalty; 2) customer perceived value has a significant effect on customer satisfaction and customer loyalty; and 3) customer satisfaction has a significant effect on customer loyalty.Originality/valueBased on the results of previous research and the phenomenon that has been described previously, the research gaps found in this study are: (1) the relationship between experience quality and customers’ perceived values. (2) There are differences in the relationship between experience quality and customer satisfaction found in the research, which examines the effect of experience quality on customer loyalty. (3) Experience quality and customer loyalty variables still differ in the research concerning the effect of experience quality on customer loyalty. (4) The influence of customer satisfaction and customer loyalty is still different in the research results regarding the effect of customer satisfaction on customer loyalty.

Predictors of customer loyalty in the Pakistani banking industry: a moderated-mediation study

2016 ◽  
Vol 34 (3) ◽  
pp. 411-430 ◽  
Author(s):  
Muhammad Abid Saleem ◽  
Sadaf Zahra ◽  
Rashid Ahmad ◽  
Hina Ismail
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Integral Model ◽  
Equation Modeling ◽  
Survey Method ◽  
Content Type ◽  
Research Framework ◽  
Mediational Role

Purpose – The purpose of this paper is to develop an original framework to explore the effects of social influence (SI), market orientation (MO) and service quality (SQ) with moderating effect of emotional intelligence (EI) on customer loyalty (CL) and to discuss the mediational role of customer satisfaction. Design/methodology/approach – This study applies six original concepts – SI, MO, SQ, EI, customer satisfaction to develop an integral model to enhance CL. In addition, this research employs an empirical study by means of the questionnaire survey method to verify the hypotheses and to explore its managerial implications. Structural equation modeling has been applied to verify the research framework. Findings – The empirical results show that MO, SI and SQ significantly affect CL with presence of customer satisfaction as a mediator. Furthermore, this study demonstrates that the direct relationships between MO and SI on CL are not supported. However indirect paths present full mediation except in case of SQ where mediation was partial. Moreover, EI was found to enhance the partially mediated relationship between SQ and CL with mediational role customer satisfaction. Hence, banks should invest resources to increase MO, SI and SQ to increase customer satisfaction and CL. Originality/value – This study summarizes the literature on customer satisfaction and relationship marketing into a new managerial framework of CL. It utilizes new arrangement of four construct – SI, MO, and SQ with EI – to develop an original framework to enhance CL. Although past research has highlighted the relevant issues about CL, none explores it with MO and moderating role of EI on SQ. Therefore, this paper develops the research framework of CL to fill the research gap specifically in Pakistani context.

scholarly journals The Mediating Role of Customer Experience on the Relationship between Online Shopping Determinants and Customer Satisfaction in Vietnam

2021 ◽  
pp. 5-8
Author(s):  
Anh Tuan Pham ◽  
◽  
Khashayar Yazdani
Keyword(s):  
Factor Analysis ◽  
Customer Satisfaction ◽  
Online Shopping ◽  
Technical Problem ◽  
Customer Experience ◽  
Equation Modeling ◽  
Sufficient Information ◽  
Mediating Role ◽  
The Relationship

The negative impacts of COVID-19 to every aspects of social-economic structure lead to the retail industry’s changes by shifting from traditional way to online shopping. Although Vietnam is potential market of e-commerce, there are still lots of barriers of online shopping to customer behaviour, especially how to improve the customer experience in purchasing process. Therefore, this paper analyses the mediating role of customer experience on the relationship between online shopping determinants such as: payment barrier, bad complaint resolve, slow delivery process, poor product quality, technical problem, and customer satisfaction in Vietnam. The online survey is conducted according to the related theories, relevant empirical evidence, and pilot study to collect reliable data from 360-400 respondents in Ho Chi Minh city and Ha Noi city. Some quantitative data analysis techniques are proposed and used in this study, including descriptive statistics, reliability, explanatory factor analysis, variance analysis, Pearson correlation analysis, confirmatory factor analysis, and structural equation modeling. For using them, the researcher expects that all factors have significant and negative effect on customer satisfaction through customer experience. By developing one of the first research attempt on pre-normal phase of COVID-19 pandemic, the researchers believes the marketers and top managers at e-commerce companies in Vietnam to have sufficient information about how their customers’ experience with online shopping platforms and related services.

Building brand equity in retail banks: the case of Trinidad and Tobago

2014 ◽  
Vol 32 (4) ◽  
pp. 300-320 ◽  
Author(s):  
Meena Rambocas ◽  
Vishnu M. Kirpalani ◽  
Errol Simms
Keyword(s):  
Customer Satisfaction ◽  
Trinidad And Tobago ◽  
Brand Equity ◽  
Structural Equation ◽  
Banking Sector ◽  
Retail Banking ◽  
Content Type ◽  
Mediating Role ◽  
Market Expansion

Purpose – The purpose of this paper is to investigate an integrated model mapping the influence of brand affinity, customer experience, and customer satisfaction on brand equity in retail banking. Design/methodology/approach – Data were collected from 315 banking customers in Trinidad and Tobago through personally administered structured questionnaires and analyzed with Structural Equation Modelling. Findings – The findings showed the mediating role of customer satisfaction in brand equity relationships. The results also showed the pivotal role of brand affinity, customer satisfaction, and service experience in explaining brand equity. Practical implications – The study provides an integrated approach to brand building. It also offers an objective framework brand owners can use to evaluate marketing investments. It also provides a clear brand differentiation strategy for bank brands. Finally, it introduces cross-cultural research in brand equity which can be a useful competitive tool for indigenous banks and foreign banks seeking market expansion strategies. Originality/value – This research is one of the few studies that analyzed brand equity in retail banking. It advanced a brand equity framework that explores the mediating role of customer satisfaction and provides a guide to uplift perceptions and stimulate customer confidence in the banking sector.

Electronic customer relationship management (E-CRM), customer experience and customer satisfaction: evidence from the banking industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pushpender Kumar ◽  
Anupreet Kaur Mokha ◽  
Subash Chandra Pattnaik
Keyword(s):  
Customer Satisfaction ◽  
Private Sector ◽  
Customer Relationship Management ◽  
Banking Industry ◽  
Relationship Management ◽  
Customer Experience ◽  
Customer Relationship ◽  
Equation Modeling ◽  
Content Type ◽  
The Relationship

PurposeThe purpose of this paper was to examine the relationship between electronic customer relationship management (E-CRM) and customer satisfaction through the mediating role of customer experience in the banking industry.Design/methodology/approachThe data were collected from customers of 10 banks (5 public and 5 private sector banks) of Delhi, India. In total, 836 useable structured questionnaires were filled, and the data were analyzed using structural equation modeling (SEM) through AMOS.FindingsThe results revealed that customer experience mediated the relationship between E-CRM and customer satisfaction confirming well with the hypothesized model.Research limitations/implicationsThe model was tested in the domain of banking industry; future results may be conducted in different domains for improving generalizability. A comparative study between public and private sector banks in terms of E-CRM, customer experience and customer satisfaction could also be conducted.Originality/valueThe study was the first to unequivocally analyze the influence of the E-CRM on customer satisfaction through customer experience in the banking industry. The study also introduced stimulus-organism-response (S-O-R) model as a theoretical support to associate E-CRM to customer satisfaction through customer experience. Thus, this study will enhance the current knowledge base and will also aid E-CRM managers amid decision-making process.

The role of customer experience in the perceived value–word-of-mouth relationship

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Volker G. Kuppelwieser ◽  
Philipp Klaus ◽  
Aikaterini Manthiou ◽  
Linda D. Hollebeek
Keyword(s):  
Consumer Behavior ◽  
Structural Equation ◽  
Word Of Mouth ◽  
Perceived Value ◽  
Customer Experience ◽  
Equation Modeling ◽  
Content Type ◽  
Behavior Outcomes ◽  
The Relationship

Purpose The customer experience (CX), as revealed in the literature-based debate, has been variously viewed as either a driver or an outcome of customer-perceived value (CPV). However, the association of CPV, CX and word-of-mouth (WoM) behavior remains nebulous to date, thereby generating an important research gap. In response and to bridge this gap, this study aims to explore CX’s role in the CPV–WoM behavior relationship, the role of WoM behavior arising from CX and whether CX acts as a core mediator (vs a moderator) in the association of CPV and subsequent consumer-behavior outcomes. Design/methodology/approach By conducting two studies spanning a broad range of services, this paper explores the relationship between CPV, CX, and WoM behavior through structural equation modeling. Findings The findings are that CX plays a crucial role in the CPV–WoM relationship, thereby confirming the existence of a direct link between CPV (social/hedonic/utilitarian value), CX and WoM. The results also highlight CX’s mediating role in the relationship between social and utilitarian (but not hedonic) values. Moreover, the results reveal that the EXQ scale, measuring CX, comprises distinct experiences perceived by high and low CX-based customer segments, respectively. Practical implications CPV (utilitarian, hedonic, social) not only affects consumers’ behavioral intentions but also, more importantly, their WoM behavior. Therefore, managers need to consider all three values. Moreover, managers should shift their focus from social value perceptions to CX. The results suggest that managers need to devote additional resources to the development of a suitable CX, which will help mitigate consumers’ online and/or offline brand-related WoM. This study indicates the context in which managers must emphasize the construct that produces positive outcomes. Originality/value By identifying a direct relationship between CPV, CX and the ensuing consumer-behavior outcomes, the study offers important theoretical insight into CX’s nomological network.

“Augmenting bank service quality dimensions: moderation of perceived trust and perceived risk”

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abhijeet Biswas ◽  
Deepak Jaiswal ◽  
Rishi Kant
Keyword(s):  
Customer Satisfaction ◽  
Private Sector ◽  
Customer Loyalty ◽  
Perceived Risk ◽  
Banking Sector ◽  
Service Innovation ◽  
Retail Banking ◽  
Equation Modeling ◽  
Content Type ◽  
Perceived Trust

PurposePermeation of private sector banks has triggered intense competitiveness in the Indian banking sector; therefore, customer satisfaction has become the epicenter of all activities. The study seeks to explicate the antecedents and reverberation of customer satisfaction in the Indian retail banking sector.Design/methodology/approachTop six Indian private sector banks were selected based on market capitalization. Cross-sectional data from 460 retail bank customers were collected by employing a structured questionnaire and evaluated wielding structural equation modeling.FindingsThe study discerns seven antecedents of customer satisfaction, namely tangibility, reliability, empathy, responsiveness, assurance, perceived service innovation and bank reputation. The results unveil that assurance, bank reputation and perceived service innovation significantly escalate customer satisfaction, which further markedly accentuates customer loyalty. However, tangibility was the only dimension bearing an insignificant relationship. In addition, both perceived trust and perceived risk significantly moderate the association between customer satisfaction and customer loyalty in the model.Research limitations/implicationsIncorporation of merely private sector banks and considering cosmopolitans restraints generalization of findings to some extent. The study bespeaks essential determinants of customer satisfaction that might succor bank professionals to retain customers and ameliorate profitability.Originality/valueThere is a paucity of literature on “perceived service innovation” and “bank reputation” in the Indian banking scenario. Therefore, the study augments the literature by integrating aforesaid important constituents along with other antecedents and reverberation. Moreover, the study uses theoretical lens to anchor its hypotheses through a comprehensive conceptual model in the backdrop of Indian retail banking.

The effect of service recovery on customer loyalty: the role of perceived food safety

2019 ◽  
Vol 11 (1) ◽  
pp. 69-86 ◽  
Author(s):  
Nancy Bouranta ◽  
Evangelos Psomas ◽  
Fotis Vouzas
Keyword(s):  
Food Safety ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Service Recovery ◽  
Equation Modeling ◽  
Confirmatory Factor Analyses ◽  
Content Type ◽  
Safety Issues ◽  
The Relationship

PurposeThis study aims to focus on the food industry and empirically examine the mediating role of consumers’ perceived food safety on the relationship between a company’s service recovery and customer loyalty. In addition, consumers’ demographic characteristics and their influences on the relationship between perceived food safety and customer loyalty are determined.Design/methodology/approachA survey was carried out through a structured questionnaire which was administered to the public. Using a small intercept interview, a random sample of 836 usable questionnaires was collected in Greece. Exploratory and confirmatory factor analyses were applied to validate the proposed constructs. The causal relationships among constructs were examined using structural equation modeling.FindingsAccording to the findings, consumers’ perceived food safety partially mediates the effect of a company’s service recovery on customer loyalty. The socio-demographic profile of consumers (gender, marital and parenthood status) also significantly influences the underlying factors of product and the loyalty attributes.Practical implicationsThis study enriches the existing literature of food safety by examining the distinct role that consumers’ perceptions play in forming loyalty, highlighting the importance of companies’ recovery efforts. The results obtained from this analysis offer a better understanding of consumer behavior toward food safety – encouraging and supporting food companies to successfully design their marketing strategies. Food safety issues also have become increasingly important in international trade, which makes it essential to understand consumer perceptions and behavior toward food safety.Originality/valueThis study fills the identified literature gap and contributes to the literature, as no previous study has examined the proposed relationships in the food sector, taking into consideration food safety issues.

Modeling the Role of Service Quality, Customer Satisfaction and Customer Loyalty in Building Service Brand Equity

2019 ◽  
Vol 10 (2) ◽  
pp. 55-72 ◽  
Author(s):  
Hashim Zameer ◽  
Ying Wang ◽  
Humaira Yasmeen ◽  
Waqas Ahmed
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Brand Equity ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Service Sector ◽  
Service Industry ◽  
Equation Modeling ◽  
Service Brand ◽  
The Relationship

This study comprehends a framework for measuring strength of service brands in service industry of Pakistan using three fundamental pillars in building service brand equity i.e. service quality, customer satisfaction and customer loyalty. The results validated through the structural equation modeling (SEM) indicates the significance of customer loyalty that is contingent to satisfied customers. Moreover, in the context of service sector organizations, customer satisfaction is highly dependent on service quality. The mediation testing further indicates that customer satisfaction mediates and strengthens the relationship between service quality and customer loyalty, while, the latter fully mediates the relationship between customer satisfaction and service brand equity. Based upon the findings, this study develops a pyramid of building service brand equity. Finally, theoretical and managerial implications have been discussed.

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