A comprehensive hierarchical model of retail banking

2017 ◽  
Vol 35 (4) ◽  
pp. 662-684 ◽  
Author(s):  
Juhaida Abu Bakar ◽  
Michael Daniel Clemes ◽  
Kathryn Bicknell
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Hierarchical Model ◽  
Switching Costs ◽  
Banking Industry ◽  
Perceived Value ◽  
Retail Banking ◽  
Corporate Image ◽  
Content Type ◽  
Behavioural Intentions

Purpose The purpose of this paper is to develop and test a comprehensive hierarchical model of behavioural intentions in the Malaysian retail banking industry. Design/methodology/approach The data were analysed using EFA, CFA and structural modelling. Findings The findings illustrate that customer satisfaction is the most important determinant of behavioural intentions, followed by switching costs, corporate image and perceived value. Service quality is indirectly related to behavioural intentions and customer satisfaction mediates the relationship between the two constructs. Customer satisfaction is strongly influenced by service quality, corporate image and perceived value. Service quality is also an antecedent of perceived value, corporate image and switching costs. The empirical results also support a hierarchical and multidimensional approach for conceptualising and measuring customers’ perceptions of service quality. Research limitations/implications The comprehensive hierarchical model developed in this research can be used as framework for additional studies on the banking industry. Practical implications The findings provide Malaysian bank managers with empirically-based insights into behavioural intentions and offer guidelines for assessing and improving service quality. Originality/value This is the first study that uses comprehensive hierarchical modelling to synthesise the effects of service quality, customer satisfaction, perceived value, corporate image and switching costs on the behavioural intentions of retail bank customers.

Mobile communications: a comprehensive hierarchical modelling approach

2014 ◽  
Vol 26 (1) ◽  
pp. 114-146 ◽  
Author(s):  
Michael Daniel Clemes ◽  
Xin Shu ◽  
Christopher Gan
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Mobile Communications ◽  
Switching Costs ◽  
Important Determinant ◽  
Perceived Value ◽  
Corporate Image ◽  
Content Type ◽  
Customer Perceived Value

Purpose – Global mobile communication is one of the most dynamic and important service markets. Several researchers suggest using a theoretical approach to develop a much deeper insight into key marketing constructs such as service quality, customer perceived value, customer satisfaction, perceived switching costs, corporate image, and customer loyalty is of vital importance to the mobile communications market. This study aims to develop and test a comprehensive hierarchical model of these six important constructs. The model also incorporates the retailing function of a major mobile communication provider. Design/methodology/approach – The research sample of 516 was drawn from customers of one of the largest mobile communications service providers in China. The data were analysed using exploratory factor analysis, confirmatory factor analysis and structural equation modelling. Findings – The results of the study support using a hierarchical and multidimensional approach for conceptualising and measuring customers' perceptions of service quality in the mobile communications market. In addition, the findings illustrate that service quality is an important determinant of customer perceived value, customer satisfaction, corporate image, and perceived switching costs. Customer perceived value is also an antecedent of customer satisfaction. Corporate image, customer satisfaction, and perceived switching costs are three key drivers of customer loyalty. However, the findings also indicate that corporate image is not an important determinant of customer satisfaction and that customer perceived value is not a key driver of customer loyalty. Originality/value – This is the first paper that has developed and tested a comprehensive hierarchical model of the mobile communications market.

Modelling the behavioural intentions of day spa customers

2020 ◽  
Vol 32 (8) ◽  
pp. 1699-1716
Author(s):  
Michael Daniel Clemes ◽  
David L. Dean ◽  
Thongkern Thitiya
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Switching Costs ◽  
Perceived Value ◽  
Primary Data ◽  
Content Type ◽  
Behavioural Intentions ◽  
Mediating Role ◽  
Modelling Framework ◽  
The Relationship

PurposeThis research develops and tests a comprehensive hierarchical model of the behavioural intentions of day spa customers.Design/methodology/approachThe primary data was collected from the customers of 17 day spas throughout Thailand. EFA and SEM were used to analyse the data and test the interrelationships among service quality, customer satisfaction, perceived value, perceived switching costs and behavioural intentions. A third-order conceptualisation of service quality is also included in the modelling framework.FindingsCustomer satisfaction is the key determinant of behavioural intentions. Service quality and perceived value are two important descriptors of customer satisfaction. Service quality is the most important determinant of customer satisfaction, and customer satisfaction is the most significant antecedent of behavioural intentions. Service quality is a significant determinant of perceived value and perceived switching costs. Customer satisfaction plays a partial mediating role on the relationship between service quality and behavioural intentions and between perceived value and behavioural intentions.Originality/valueThere is a conceptual gap in the literature as no published empirical research on the day spa industry has comprehensively modelled the behavioural intentions of day spa customers. The comprehensive hierarchical modelling approach used in this study provides a complete and integrative analysis of the constructs under investigation in a day spa context and closes the research gap.

The effect of service quality and customer satisfaction on customer loyalty

2019 ◽  
Vol 38 (2) ◽  
pp. 384-405 ◽  
Author(s):  
Pınar Özkan ◽  
Seda Süer ◽  
İstem Köymen Keser ◽  
İpek Deveci Kocakoç
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Corporate Reputation ◽  
Banking Industry ◽  
Perceived Value ◽  
Corporate Image ◽  
Mediation Effects ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of customer satisfaction, service quality, the perceived value of services, corporate image and corporate reputation on customer loyalty and their relationship in the Turkish banking industry. Mediation effects of the perceived value and corporate image and reputation are also studied. Understanding the relationships between the determinants of customer loyalty toward the bank helps management to use corporate image and reputation more effectively in its strategy, thus enhancing the institution’s position in the minds of consumers. Design/methodology/approach A model is proposed to explore the relationships of service quality and customer satisfaction with a perceived value and their effect on transforming the corporate image and corporate reputation into the form of customer loyalty toward the bank. A survey is designed within this framework and SEM analysis is conducted in order to study the nature of relationships between variables of interest hypothesized to affect customer behavior and customer loyalty. Mediation tests for perceived value and corporate image and reputation are also conducted. Findings The findings of the survey indicate that corporate image and corporate reputation can be used as a common marketing benchmark to measure a bank’s performance. The results demonstrated that customers perceive quality and satisfaction effects loyalty through perceived value, image and reputation. Research limitations/implications The study was conducted in Izmir, the third biggest city of Turkey. The sample is composed of regular customers, and the sample size is enough for the study but more studies are needed to generalize the results. Practical implications The results provide information to bank managers to effectively assist them to offer appropriate customer service levels sustaining satisfaction, quality and value to the customers within the transactions. Originality/value The paper studies the determinants of customer loyalty in the Turkish banking industry and considers the effects of corporate image and corporate reputation as measured by customer satisfaction, service quality and perceived value, on customer loyalty toward banks in Turkey. This model is not studied in bank marketing in Turkey and also in the banking literature.

Synthesizing moderate upscale restaurant patrons’ dining experiences

2018 ◽  
Vol 30 (3) ◽  
pp. 627-651 ◽  
Author(s):  
Michael Daniel Clemes ◽  
Zurinawati Mohi ◽  
Xuedong Li ◽  
Baiding Hu
Keyword(s):  
Factor Analysis ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Hierarchical Model ◽  
Positive Impact ◽  
Perceived Value ◽  
Structural Equations ◽  
Third Order ◽  
Content Type ◽  
Behavioural Intentions

PurposeThe purpose of this paper is to develop and test a comprehensive hierarchical model of the interrelationships among five higher order marketing constructs (service quality, customer satisfaction, perceived value, restaurant image and behavioural intentions) for moderate upscale restaurants in Malaysia. A third order conceptualisation of service quality is also included in the empirical analysis.Design/methodology/approachThe data were analysed using exploratory factor analysis, confirmatory factor analysis and structural equations.FindingsService quality, customer satisfaction and restaurant image all have a strong, positive impact on the behavioural intentions of moderate upscale restaurant patrons. Service quality, perceived value and restaurant image are also important determinants of customer satisfaction. Behavioural intentions to re-patronise a restaurant and recommend it to friends are influenced more strongly by restaurant image than by customer satisfaction. Three primary dimensions and ten pertaining sub-dimensions are modelled in the third order conceptualisation of service quality. The primary and sub-dimensions also vary in importance amongst the customers in the sampling frame.Originality/valueThis is the first empirical research that develops and tests a comprehensive hierarchical model for moderate upscale restaurants to provide a complete and integrative analysis of a service setting. The interrelationships among service quality, customer satisfaction, perceived value restaurant image and behavioural intentions are assessed. A third order conceptualisations of service quality is also included in the modelling framework.

A multidimensional and hierarchical model of banking services and behavioral intentions of customers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md. Alamgir Hossain ◽  
Nusrat Jahan ◽  
Minho Kim
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Hierarchical Model ◽  
Behavioral Intentions ◽  
Perceived Value ◽  
Service Marketing ◽  
Corporate Image ◽  
Mediation Effects ◽  
Banking Services ◽  
Content Type

PurposeBanking services encounter major challenges in determining customer's psychometric behavioral intentions. Scholars suggest that a theoretical approach to better understand the key constructs of service marketing, such as service quality, perceived value, customer satisfaction, corporate image and behavioral intentions, is critical to bank performance. The present study aims to design and test a comprehensive multidimensional and hierarchical model of service quality with higher-order psychometric constructions and their mediation effects in the model.Design/methodology/approachData from a self-administered structured questionnaire are analyzed by confirmatory factor analysis and structural equation modeling.FindingsEmpirical results confirm that multidimensional and hierarchical service quality are best suited to assess overall banking service quality, in which outcome, interaction and environment quality are the important primary dimensions, with each of them having several subdimensions. Service quality is the significant antecedent of behavioral intentions, customer satisfaction, corporate image and perceived value. Customer satisfaction and service quality are the best determinants of behavioral intentions. In addition, customer satisfaction, perceived value and corporate image are complementary variables, having significant mediation effects on the relationship between service quality and behavioral intentions.Originality/valueAs a maiden study in the context of emerging economies, this research integrates a comprehensive service quality theory and valuable customer loyalty constructs, which are crucial to banks' financial performance, bolstering evidence for the theoretical pitch. This study also provides managers with a clear idea of how they can develop sustainable service marketing strategies and policies on the psychometric perceptions of customers, thereby leading banks to achieve long-term goals.

The effects of customer satisfaction, perceived value, corporate image and service quality on behavioral intentions in gaming establishments

2014 ◽  
Vol 26 (4) ◽  
pp. 540-565 ◽  
Author(s):  
Hung-Che Wu
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Behavioral Intentions ◽  
Perceived Value ◽  
Corporate Image ◽  
Gaming Industry ◽  
Content Type ◽  
Perceived Service Quality ◽  
Multi Level ◽  
Main Determinants

Purpose – The purpose of this paper is to identify the dimensions of service quality and examining the interrelationships among behavioral intentions, customer satisfaction, perceived value, corporate image and service quality in the gaming industry. A multi-level and hierarchical model is used as a framework to synthesize the effects of customer satisfaction, perceived value, corporate image and service quality on behavioral intentions of customers in the gaming industry. Design/methodology/approach – The data used in this study were based on a sample of 470 at a newly built casino in Macau. Data were analyzed using exploratory factor analysis and regression analysis. Findings – The findings support using a multi-level model consisting of three primary dimensions and ten sub-dimensions to conceptualize and measure perceived service quality. Perceived service quality significantly influences perceived value and corporate image, respectively. In addition, perceived value and corporate image are main determinants of customer satisfaction. Also, customer satisfaction and corporate image significantly affect behavioral intentions. Originality/value – This is the first study synthesizing behavioral intentions, customer satisfaction, perceived value, corporate image and perceived service quality in a Macau casino setting.

Impact of service quality, corporate image and customer satisfaction towards customers’ perceived value in the banking sector in Pakistan

2015 ◽  
Vol 33 (4) ◽  
pp. 442-456 ◽  
Author(s):  
Hashim Zameer ◽  
Anam Tara ◽  
Uzma Kausar ◽  
Aisha Mohsin
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Banking Sector ◽  
Perceived Value ◽  
Corporate Image ◽  
Content Type ◽  
Independent Variables ◽  
Customer Perceived Value ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to explore the impact of services quality, customer satisfaction and corporate image on customer perceived value in the banking sector of Pakistan. Design/methodology/approach – A model is developed to show the relationship between dependent and independent variables taken from the existing literature. The data are collected from 200 respondents taken from the five major cities of Pakistan using structured questionnaire. Correlation and regression are applied to estimate the relationship between variables and find out the extent to which the independent variables have impact on the dependent variable. Findings – Results show that there is a positive relation between the service quality, customer satisfaction and corporate image. It is also analyzed by the results that service quality and customer satisfaction have high impact on the customer perceived value where corporate image also effect the customer perceived value. Originality/value – This paper identified the impact of service quality, customer satisfaction and corporate image on the customer perceived value that helps the services sector especially banks how they can improve the customer perceived value through improving their service quality, customer satisfaction and corporate image.

Elucidating perceived overall service quality in retail banking

2017 ◽  
Vol 35 (5) ◽  
pp. 781-804 ◽  
Author(s):  
Zalfa Laili Hamzah ◽  
Siew Peng Lee ◽  
Sedigheh Moghavvemi
Keyword(s):  
Customer Satisfaction ◽  
Empirical Study ◽  
Service Quality ◽  
Banking Industry ◽  
Internet Banking ◽  
Retail Banking ◽  
Service Industries ◽  
Content Type ◽  
Customer Trust ◽  
The Impact

Purpose The purpose of this paper is to examine the dimensions of service quality (SERVQUAL) from the perspective of the customers and its relationships with perceived overall SERVQUAL in retail banking and also investigate the relationships between perceived overall SERVQUAL and customer trust, customer satisfaction, and bank reputation. Design/methodology/approach A survey questionnaire was constructed, and data were collected from 375 regular customers of local banks. The convenience sampling method was employed to collect data from existing customers of local banks operating in the Klang Valley area of Malaysia. Structural equation modelling was applied to analyse the data. Findings The results of the study indicate four key dimensions of SERVQUAL – tangibles, empathy, reliability and security, and internet banking – all of which are significantly and positively related to customers’ perceived overall SERVQUAL. Internet banking facilities are another significant determinant of the perceived overall SERVQUAL. The results are indicative of the strong and positive effect upon customer satisfaction, their trust in the bank, and, finally, a bank’s reputation. Research limitations/implications This study has presented and tested empirical study of perceived overall SERVQUAL model in the banking industry, particularly in the Malaysian context. This research identified the dimensions of SERVQUAL (i.e. tangibles, empathy, reliability and security, and internet banking) that influence the overall perceived SERVQUAL, and how these overall perceptions will eventually influence customer trust, customer satisfaction, and bank reputation is valid and reliable in retail banking industry. This study, however, only focussed on the banking industry. Given the diversity of the service industry, these findings may have to be tested for the applicability to different service industries in future studies. Practical implications This research is useful to bank managers as it helps them improve SERVQUAL to protect and expand their respective market share in a highly competitive industry. Banks could utilise the results of this study to improve their service tangibility, empathy, reliability, and security, which will affect both customer trust and satisfaction, and enhance a bank’s reputation. Social implications The findings of specific dimensions of SERVQUAL will contribute to customer perception of banks’ image and reputation, and strengthen trust and satisfaction. Moreover, assisting customers towards the understanding of how they should received high quality of services with regard to quality should be perceived as emphatic, reliable, secured and tangibility of service. Originality/value The findings of this study highlight the specific dimensionalities of SERVQUAL in influencing the perceived overall SERVQUAL. This study will increase the understanding on the impact of perceived overall SERVQUAL on consumer trust, customer satisfaction, and a bank’s reputation. Specifically, it reports an empirical study of a model of perceived overall SERVQUAL that simultaneously considers the direct effects of perceived overall SERVQUAL on customer trust, customer satisfaction and bank reputation.

Factors influencing consumer loyalty: evidence from the Ghanaian retail banking industry

2019 ◽  
Vol 37 (3) ◽  
pp. 798-820 ◽  
Author(s):  
Osaretin Kayode Omoregie ◽  
John Agyekum Addae ◽  
Stanley Coffie ◽  
George Oppong Appiagyei Ampong ◽  
Kwame Simpe Ofori
Keyword(s):  
Service Quality ◽  
Structural Equation ◽  
Banking Sector ◽  
Banking Industry ◽  
Retail Banking ◽  
Corporate Image ◽  
Equation Modeling ◽  
Design Data ◽  
Cross Sectional ◽  
Content Type

PurposeThe increasing number of banks in the Ghanaian banking industry has brought about intense competition in the industry. The purpose of this paper is, therefore, to examine the factors that influence retail banking customers’ loyalty intentions.Design/methodology/approachIn order to validate the proposed research model, the study adopts a survey design. Data were collected from 565 customers of the top performing banks in terms of customer deposits. Data analysis employed the partial least squares structural equation modeling (PLS–SEM) using SmartPLS version 3.FindingsResults from the PLS–SEM analysis indicated that satisfaction, service quality and trust had significant effect on loyalty, with satisfaction having the most significant effect. Interestingly corporate image was found to have a significant effect on both satisfaction and trust but not on loyalty. In all, the proposed model accounted for 63.3 percent of the variation in loyalty.Research limitations/implicationsThe current study samples customers from only the top performing banks in Ghana. The use of cross-sectional data makes it impossible to study how customers’ perceptions change over time. Results from this study could, however, help managers of banks in designing strategies aimed at improving customer loyalty in order to consolidate their market share.Originality/valueThis paper adds to existing works that focus on loyalty in the retail banking sector, especially from the context of a developing economy. The study draws attention to the interrelationship among service quality, perceived value, satisfaction, image, trust and loyalty.

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