The effects of the elaboration likelihood model on initial trust formation in financial advisory services

2018 ◽  
Vol 36 (3) ◽  
pp. 572-590 ◽  
Author(s):  
Mario Silic ◽  
Christian Ruf
Keyword(s):  
Structural Equation ◽  
Planning Process ◽  
Equation Modeling ◽  
Mobile Service ◽  
Financial Advisors ◽  
Initial Trust ◽  
Content Type ◽  
Net Worth ◽  
Trust Formation ◽  
Likelihood Model

Purpose In order for financial institutions to cope with increased competitive pressure from the financial technology companies, offering digital services such as a mobile service system (MSS) targeted for high net worth individuals (HNWIs) becomes critical. Despite long-term trustworthy relationships between HNWIs and financial advisors, studies suggest that the formation of initial trust poses a significant challenge. The purpose of this paper is to identify various features related to initial trust antecedents. Design/methodology/approach The study was conducted using the survey data, and employs variance-based structural equation modeling (SEM) techniques to test hypotheses. Findings The findings from a closed experiment with 107 participants suggest that compared to more traditional service systems, customers are more prone to the construct of service quality, and specifically professional, prompt, dependable and timely financial advice. Originality/value The study validated key constructs that positively influence the initial trust formation process and ultimately the intention to use in an MSS for the financial advisory. The authorts particularly emphasized the rebalancing and monitoring steps in the financial planning process between HNWIs and client advisors.

scholarly journals Revisiting the relationship between formal planning process and planning effectiveness

2018 ◽  
Vol 30 (2) ◽  
pp. 1016-1034 ◽  
Author(s):  
Said Elbanna ◽  
Tamer H. Elsharnouby
Keyword(s):  
Decision Making ◽  
United Arab Emirates ◽  
Structural Equation ◽  
Planning Process ◽  
Price Volatility ◽  
Organizational Capabilities ◽  
Equation Modeling ◽  
Content Type ◽  
Tourism Sector ◽  
The Impact

Purpose The purpose of this study is to address a timely research question by clarifying whether formal planning is a worthy approach for hotels. In so doing, the authors developed a theoretical model that extends prior research by exploring how the formal planning process influences organizational capabilities and decision-making style. The model also examines the impact of the three identified factors on planning effectiveness. Design/methodology/approach Data were collected from 175 hotels located in United Arab Emirates (UAE) and Qatar and hypotheses were tested using structural equation modeling (SEM). Findings The study concludes that the practice of formal planning in the tourism sector does matter and both organizational capabilities and decision-making style are important factors in predicting planning effectiveness. Research limitations/implications Generalizations to organizations operating in other sectors, such as manufacturing or government sectors, should be drawn cautiously. Practical implications Taking into account oil price volatility and serious political crises in the region, this study provides several insights to hotel managers into how the formal planning process can influence planning effectiveness. Originality/value The findings enrich the debate on the role of formal planning in the tourism sector, which has been relatively devoid of similar studies.

How functional and emotional ads drive smartwatch adoption

2019 ◽  
Vol 29 (3) ◽  
pp. 578-602 ◽  
Author(s):  
Nina Krey ◽  
Stephanie Hui-Wen Chuah ◽  
T. Ramayah ◽  
Philipp A. Rauschnabel
Keyword(s):  
Structural Equation ◽  
Ease Of Use ◽  
Equation Modeling ◽  
Value Assessment ◽  
Content Type ◽  
Personal Innovativeness ◽  
Functional Value ◽  
Value Perceptions ◽  
Likelihood Model ◽  
Symbolic Value

Purpose The purpose of this paper is to examine advertising strategies’ (functional vs emotional) influence on consumers’ evaluation and adoption of smartwatches by drawing on the elaboration likelihood model and the schema incongruity theory. Moderating effects of consumer characteristics (personal innovativeness and extraversion) on the value assessment and attitude relationship are also tested. Design/methodology/approach The model was assessed using partial least squares-structural equation modeling with a sample of 999 non-smartwatch users. Findings Results show that functional ads elicit higher levels of hedonic than functional (usefulness) and ergonomic values (ease of use), whereas emotional ads produce higher levels of functional (usefulness) in comparison to hedonic value (enjoyment). Collectively, functional, ergonomic, hedonic and symbolic values shape consumers’ attitude and their subsequent behavior. In addition, findings demonstrate that extraversion positively moderates the symbolic value–attitude relationship, whereas personal innovativeness negatively moderates the functional value–attitude relationship. Originality/value Smartwatch sales have floundered despite substantial investments in ad campaigns. This study provides novel insights into managing non-users’ value perceptions of smartwatches with the optimal use of ad strategies. Furthermore, it is also one of the first studies to validate the moderating role of extraversion on the symbolic value–attitude link, thus contributing to the emerging literature on wearable technology.

Consumer initial trust toward internet-only banks in France

2017 ◽  
Vol 35 (6) ◽  
pp. 903-924 ◽  
Author(s):  
Souheila Kaabachi ◽  
Selima Ben Mrad ◽  
Maria Petrescu
Keyword(s):  
Structural Equation ◽  
Marketing Research ◽  
Internet Banking ◽  
Equation Model ◽  
Relative Advantage ◽  
Initial Trust ◽  
Convenience Sample ◽  
Content Type ◽  
Trust Formation ◽  
The Usa

Purpose The purpose of this paper is to investigate internet-only banks’ (IOBs) adoption by French consumers and attempt to understand the factors that influence consumers’ initial trust in this type of service. Design/methodology/approach A non-probability convenience sample of potential IOBs adopters from France was used to test a structural equation model that analyzed the antecedents of initial trust and usage intentions of IOBs. Findings The study shows that trust is a major influencer in IOBs’ adoption in France. It has also been found that consumer familiarity with internet banking, high perceived structural assurance, perceived website quality, bank reputation and relative advantage are critical factors influencing IOBs’ initial trust formation. Research limitations/implications This study shows the applicability of the initial trust-building model in the context of IOBs and underlines the importance of factors such as familiarity, reputation and perceived quality in the context of online banking services in France. Practical implications This paper provides e-banking companies with the most important factors that contribute to build the initial trust of customers. E-banks need to focus on making themselves known and promoting their brand more effectively through advertising and advocacy. Originality/value This study contributes significantly to the marketing research related to consumer trust and brand reputation, as well as to the electronic banking literature. The results show the importance of initial trust in the context of services and the main factors that influence it, including a key branding variable such as reputation. The paper also focuses on the IOBs’ adoption in France, a market understudied compared to the USA, and seeks to understand the mechanisms associated with the initial formation of French consumers’ trust toward it.

Reference effects and customer engagement in a museum visit

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Noel Yee Man Siu ◽  
Tracy Junfeng Zhang ◽  
Ho Yan Kwan
Keyword(s):  
Structural Equation ◽  
Customer Experience ◽  
Customer Engagement ◽  
Equation Modeling ◽  
Content Type ◽  
Self Identity ◽  
Museum Visit ◽  
Response Sets ◽  
Likelihood Model ◽  
Promotional Messages

Purpose By extending the expectancy-disconfirmation theory and integrating the elaboration likelihood model, this study aims to explore the reference effects (i.e. disconfirmation and self-identity) and customer engagement that affect customer experience on satisfaction with a museum visit. The study is designed to test a dual-mediator mechanism involving disconfirmation and self-identity. The moderating role of cognitive, affective or behavioral engagements is also examined with the overall purpose to advance the understanding of customer experience in cultural consumption such as museum visits. Design/methodology/approach A self-administered field survey in two stages was carried out on visitors to the Hong Kong Museum of Art. A total of 465 valid response sets were used for analysis. Hypotheses were tested using confirmatory factor analysis, three-step mediation test, structural equation modeling and moderation regressions. Findings Disconfirmation and self-identity are found to be dual mediators in the experience–satisfaction relationship. Cognitive engagement reduces the effect of knowledge experience on disconfirmation and self-identity but increases that of the entertainment experience on disconfirmation and self-identity. Affective engagement amplifies the effect of knowledge experience on self-identity but mitigates the importance of entertainment evaluations. Practical implications Findings highlight the importance of both perceived knowledge and entertainment experiences in visitors’ evaluation of a cultural experience. Managers are suggested to craft promotional messages with the psychological appeal that connects visitors with museum services. Appropriate engagement tactics for museums can be developed to avoid overloading visitors with information. Originality/value Previous studies treat disconfirmation as the dominant reference effect in the formation of customer satisfaction. This study shows both disconfirmation and self-identity as dual reference effects that link the customer experience to satisfaction in the museum context, serving as a pioneer in defining how the influence of experience on reference effects varies depending on how customers are cognitively and affectively engaged in such context.

Exploring perceived innovation in building customers’ patronizing behavior in the food delivery service context

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jiseon Ahn
Keyword(s):  
Structural Equation ◽  
Service Industry ◽  
Food Delivery ◽  
Sustainable Growth ◽  
Equation Modeling ◽  
Service Process ◽  
Mobile Service ◽  
Service Concept ◽  
Content Type ◽  
The Impact

Purpose In the food delivery industry, mobile applications have become an important platform for providing services and interacting with customers. Thus, this study aims to examine whether customers’ perceived innovation changes their patronizing behavior intention toward the brand’s application. Design/methodology/approach Using data from food delivery customers in the USA, this study identifies the relative impact of multidimensional innovation (i.e. service concept innovation, service process innovation and customer experience innovation) on customers’ behavior. Partial least squares-structural equation modeling is used to test the hypotheses. Findings Results show that customers’ perceived service process and experience innovation increase commitment, which turns into reuse intention of the delivery application. Commitment also increases the impact of customers’ perceived innovation on loyalty. However, in this study, service concept innovation is insufficient to solely create positive behavioral intention. Practical implications Findings suggest that a food delivery application that continues to innovate to improve the service process and experience can be an effective marketing tool because they increase bonding with customers. This study recommends that food delivery companies manage their relationship with customers to achieve sustainable growth. Originality/value Despite the growing attention in the mobile service industry, limited studies have examined the effects of innovations of food delivery application on customers’ behavior. Thus, this study provides useful guidelines that advance mobile commerce research, especially in the food delivery industry.

An Exploration of Antecedents of Initial Trust in M-Payments

2021 ◽  
Vol 19 (4) ◽  
pp. 80-102
Author(s):  
Hemantkumar P. Bulsara ◽  
Esha A. Pandya
Keyword(s):  
Structural Equation ◽  
Service Providers ◽  
Positive Impact ◽  
Mobile Network ◽  
Negative Influence ◽  
Equation Modeling ◽  
Mobile Service ◽  
Cross Sectional Survey ◽  
Initial Trust ◽  
Cross Sectional

This study aims to investigate factors influencing the formation of consumers' initial trust in m-payments in a developing country such as India. Despite being considered a significant pre-adoption factor, initial trust in m-payments has remained underexplored. To fulfill this research gap, a cross-sectional survey of 1,087 respondents has been conducted, and the analysis has been done using factor analysis and structural equation modeling. Results indicate that consumers' awareness about m-payments and perceived integrity of mobile service providers positively influence initial trust, whereas perceived risks have a significant negative influence, and perceived opportunism of service provider has a marginally significant influence on the formation of initial trust. The findings will be helpful to the m-payment vendors, mobile network operators, and technology providers to enhance trust-building mechanisms in mobile payment systems that can have a positive impact on the adoption and usage of m-payments.

COVID-19 pandemic: consumers' purchase intention of indoor fitness products during the partial lockdown period in Singapore

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Heetae Cho ◽  
Weisheng Chiu
Keyword(s):  
Data Analysis ◽  
Purchase Intention ◽  
Structural Equation ◽  
Equation Modeling ◽  
Elaboration Likelihood ◽  
Content Type ◽  
Argument Quality ◽  
Likelihood Model ◽  
Sport Consumer Behavior

PurposeThe study aims to explore how the perception of coronavirus disease 2019 (COVID-19) affects argument quality of advertisement, attitude and purchase intentions of the indoor fitness products based on the elaboration likelihood model (ELM). Moreover, the moderating effect of exercise involvement was examined.Design/methodology/approachA total of 283 consumers in Singapore were recruited during the partial lockdown period. Data analysis was employed using the partial least squares structural equation modeling (PLS-SEM).FindingsThe results of data analysis showed that perception of COVID-19 affected argument quality of advertisement, attitude and purchase intention of indoor fitness products. Meanwhile, argument quality resulted in a favorable attitude toward indoor fitness products, which, ultimately, led to the purchase intention. In addition, exercise involvement positively moderated the influence of argument quality on attitude.Originality/valueThe findings provide implications for businesses and researchers to understand sport consumer behavior during the COVID-19 pandemic.

Consumer’s initial trust formation in IOB’s acceptance

2019 ◽  
Vol 37 (2) ◽  
pp. 507-530 ◽  
Author(s):  
Souheila Kaabachi ◽  
Selima Ben Mrad ◽  
Bay O’Leary
Keyword(s):  
Social Influence ◽  
Technology Acceptance ◽  
Structural Equation ◽  
Consumer Information ◽  
Initial Trust ◽  
Convenience Sample ◽  
Content Type ◽  
Website Usability ◽  
Trust Formation ◽  
Propensity To Trust

Purpose The purpose of this paper is to explore how variables like propensity to trust, website usability, social influence, customer awareness about internet-only banks (IOBs) and perceived compatibility influence customers’ initial trust formation toward IOBs’ acceptance. The model is based on the technology acceptance model, diffusion of innovation theory and theory of reasoned action. Design/methodology/approach A non-probability convenience sample of 239 IOBs’ potential adopters from France was used to test the structural equation model between initial trust antecedents and IOB’s usage intention. Findings Findings confirm the important role of trust in initiating customers’ relationship with IOBs and show that social influence, compatibility and website usability contribute the most to IOB’s initial trust formation. Indeed, it has been found that the level of consumer information about IOBs and propensity to trust have a moderate impact on consumer’s initial trust. Results revealed that there is a general lack of consumer’s awareness about IOB’s services features. Practical implications To promote the trustworthiness of their sites and services to potential consumers, IOBs should enhance WOM by using social network applications. IOBs need to develop marketing communication campaigns in which they can educate potential customers about IOB’s features. In addition, IOBs should demonstrate to their customers that IOBs’ banking system is consistent with their current lifestyle. IOBs are encouraged to develop a favorable impression by investing heavily on their website usability and information design. Originality/value This study contributes significantly to the marketing research literature related to consumer trust and electronic banking literature. Indeed, only a few marketing studies have been conducted about IOBs. The results show the role played by initial trust formation in the case of IOBs. In addition, it points out the importance of five trust cues: individual cues, knowledge cues, institutional cues, cognitive cues and social cues (social influence).

scholarly journals News you can use! Evaluating the effectiveness of newsjacking based content on social media

2019 ◽  
Vol 33 (2) ◽  
pp. 755-773 ◽  
Author(s):  
Rob Angell ◽  
Matthew Gorton ◽  
Paul Bottomley ◽  
Ben Marder ◽  
Shikhar Bhaskar ◽  
...  
Keyword(s):  
Social Media ◽  
Structural Equation ◽  
Equation Modeling ◽  
Elaboration Likelihood ◽  
Communication Tool ◽  
Modeling Framework ◽  
Content Type ◽  
Consumer Responses ◽  
News Stories ◽  
Likelihood Model

Purpose Newsjacking (real-time deployment of news stories in communications) is now ubiquitous for brands using social media. Despite its pervasiveness, little analysis of its effectiveness exists. The purpose of this paper is to test if newsjacking positively influences various consumer responses (attitude toward content, brand attitude and purchase intent). Taking an audience perspective supported by the elaboration likelihood model, the research also establishes if a higher level of news involvement, as well as an ability to recognize the story behind the content, enhances the effectiveness of newsjacking content. Design/methodology/approach An experimental design using taglines (newsjacking vs non-topical content) from a real BMW campaign was tested on a sample of 252 consumers. Three research questions pertaining to the effectiveness of newsjacking were specified and analyzed within a structural equation modeling framework. Findings The findings support the conclusion that newsjacking is an effective communication tool. More favorable consumer responses were elicited in the newsjacking condition, as compared to content deploying a non-topical tagline. In addition, recipients reporting a higher level of news involvement rated the content more favorably in the newsjacking (vs the non-topical) condition. Deploying news stories that are more recognizable increases the chances of successful newsjacking. Messages received by those with higher product involvement (category level: cars) were more effective regardless of the type of the appeal. Originality/value The authors contribute to the communications and social media literatures by investigating the effectiveness of an emerging but popular tactic leveraged by content creators. The work builds upon the limited research that has tested consumer responses to newsjacking. From a practical perspective, the research provides insight into the type of audience and situations most likely to yield a favorable outcome from newsjacking.

Category-based or piecemeal-based processing? A dual model of web-mobile service extension behavior

2019 ◽  
Vol 119 (5) ◽  
pp. 993-1014 ◽  
Author(s):  
Xiang Gong ◽  
Kem Z.K. Zhang ◽  
Chongyang Chen ◽  
Sesia J. Zhao ◽  
Matthew K.O. Lee
Keyword(s):  
Structural Equation ◽  
Online Survey ◽  
Subjective Norm ◽  
Positive Influence ◽  
Mobile Technologies ◽  
Equation Modeling ◽  
Mobile Service ◽  
Dual Model ◽  
Content Type ◽  
The Impact

PurposeThe advancements of mobile technologies and devices have greatly facilitated the extension of online services from web to mobile environments. Drawing on the categorization theory, the purpose of this paper is to explore the impact of perceived entitativity on users’ web-mobile service extension behavior. The research model considers how perceived entitativity serves as a category cue to link the category- and piecemeal-based processing and shape users’ adoption of extended mobile services.Design/methodology/approachAn online survey (n=552) was conducted to empirically test the model. The data were analyzed by structural equation modeling approach.FindingsThe results offer two major findings. First, performance expectancy, perceived controllability and subjective norm are important antecedents of users’ usage intention. Second, perceived entitativity has three types of effects on usage intention: it exerts a direct and positive influence on usage intention; it indirectly facilitates usage intention through increasing PE and perceived controllability; and it moderates the relationship between subjective norm and usage intention.Originality/valueThis study contributes to the literature by taking into account the interplay of category- and piecemeal-based processing to understand consumers’ web-mobile service extension behavior.

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