Personnel capability and customer satisfaction as predictors of customer retention in the banking sector

2018 ◽  
Vol 36 (4) ◽  
pp. 663-679 ◽  
Author(s):  
Mushtaq Ahmad Darzi ◽  
Suhail Ahmad Bhat
Keyword(s):  
Customer Satisfaction ◽  
Structural Equation ◽  
Banking Sector ◽  
Positive Impact ◽  
Control Variable ◽  
Customer Retention ◽  
Equation Modeling ◽  
Private Bank ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to report the findings of a study undertaken to understand customer satisfaction and customer retention in business-to-consumer markets. The study investigates the effect of personnel capability and customer satisfaction on customer retention in the banking sector. The influence of the control variable (gender) on customer retention and mediating role of customer satisfaction has also been examined. Design/methodology/approach The study has used structural equation modeling (SEM) for data analysis across a sample of 409 bank customers of a private bank operating in Jammu and Kashmir state of India. Questionnaires were distributed and respondents were selected through a cluster sampling technique. Findings The empirical analysis through SEM has confirmed that personnel capability and customer satisfaction have a significant positive impact on customer retention. Customer satisfaction partially mediates the effect of personnel capability on customer retention. Moderation analysis was performed and established that gender moderates the effect of personnel capability on customer satisfaction. It was also found that gender has no effect on other relations. Furthermore, the study shows that personnel capability has a stronger impact on customer retention as compared to customer satisfaction. However, the relationship between personnel capability and customer satisfaction is significant. Research limitations/implications The study has been conducted on the customers of a private bank in India. Therefore, generalizations may be limited. As personnel capability is the predictor of satisfaction and retention, individuals with proper social and technical skills – in addition to other skills – should be hired for managing relationships with customers. Originality/value The study has added to the understanding of the relationship which exists among the following variables: gender, personnel capability, customer satisfaction and customer retention. These variables have not been studied together previously.

Effect of commitment and customers’ satisfaction on the relationship between service quality and customer retention in rural banks in Makassar, Indonesia

2018 ◽  
Vol 37 (1) ◽  
pp. 53-64 ◽  
Author(s):  
Dian Anggraece Sigit Parawansa
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Structural Equation ◽  
Customer Retention ◽  
Mediation Effect ◽  
Equation Modeling ◽  
Content Type ◽  
South Sulawesi ◽  
The Relationship ◽  
Intervening Variables

Purpose The purpose of this paper is to investigate the effect of commitment and customer’s satisfaction on the relationship between service quality and customer retention. Design/methodology/approach The research was conducted on the entire customer rural banks (BPR) in Makassar, South Sulawesi Province; the sample size comprised 300 respondents. Analysis equipment used in this study is a quantitative approach that is inferential statistical analysis with structural equation modeling based variance is known as a method WarpPLS. Findings The results of the analysis show that there is significant influence between the variables of service quality, commitment, customer satisfaction, and customer retention. It was also found that the results of the variables commitment and customer satisfaction mediate the effect of service quality on customer’s retention. Originality/value The study showed the mediation effect (using the Sobel test) of service quality on customer retention using commitment and customer satisfaction as intervening variables in rural banks; and the study was conducted in the customer rural banks (BPR) in Makassar, South Sulawesi Province, where no such study for this relationship has been conducted previously.

Impacts of city personality and image on revisit intention

2015 ◽  
Vol 1 (1) ◽  
pp. 50-69 ◽  
Author(s):  
Hong-bumm Kim ◽  
Sanggun Lee
Keyword(s):  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Causal Relationships ◽  
City Image ◽  
Content Type ◽  
Dynamic Image ◽  
Revisit Intention ◽  
The Relationship ◽  
The City

Purpose – The purpose of this paper is to examine the causal relationships of city personality and city image, together with the possible effect of city image on the revisit intention of visitors, through empirical validation, so that some meaningful implications can reveal to city planners and marketers how the city tourists can be affected by the personality and image of the city. Design/methodology/approach – This study offers an integrated approach to understanding the relationship between city personality and city image. The research model investigates the relevant relationships among the underlying dimensions of city personality and city image by using a structural equation modeling (SEM) approach. Data obtained from a sample of 302 respondents drawn from a web-based survey in South Korea were analyzed with AMOS program. Findings – The results of this empirical study indicate that city personality positively or negatively affect city image depending on the nature of constructs. Positive relationships are found to exist between excitement as well as sophistication personality and dynamic image of city. On the contrary, the relationship between sincerity personality and dynamic image is negative. All the specific three images of city: dynamic, specific, and static image show positive impact on revisit intention of city tourists. Originality/value – The empirical results of this study provide tenable evidence that the proposed SEM designed to consider city personality and city image, and revisit intention simultaneously is acceptable. Even though in the previous literature, researchers tried to explain the relationship between city personality and city image, the conceptual model and empirical studies pertaining to causal relationships among those constructs have not been thoroughly examined. It is believed that this study has a substantial capability for generating more precise applications related to city tourism, especially concerning city personality and city image.

The effects of knowledge creation process on organizational performance using the BSC approach: the mediating role of intellectual capital

2018 ◽  
Vol 22 (4) ◽  
pp. 802-823 ◽  
Author(s):  
Gholamhossein Mehralian ◽  
Jamal A. Nazari ◽  
Peivand Ghasemzadeh
Keyword(s):  
Organizational Performance ◽  
Intellectual Capital ◽  
Knowledge Creation ◽  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Success Factor ◽  
Content Type ◽  
Key Dimensions ◽  
The Relationship

PurposeKnowledge is a key success factor in achieving competitive advantage in the current fast-paced and uncertain economic environment. Several studies in the literature have analyzed the relationship between knowledge creation (KC) and organizational success; however, the mechanisms by which KC leads to accumulation of intellectual capital (IC) and thereby affects various dimensions of organizational performance are understudied. The purpose of this paper is to examine how KC and IC and their relationship influence key dimensions of organizational performance.Design/methodology/approachA research model was developed and tested based on the literature in the areas of KC, IC and organizational performance. This study uses a survey sent to companies in an intensive knowledge-based industry. The balanced scorecard (BSC) approach was used to measure the key dimensions of organizational performance.FindingsThe results from structural equation modeling (SEM) on 470 completed questionnaires received from the pharmaceutical companies in Iran reveal that KC activities lead to the accumulation of organizational IC and IC has a crucial and positive impact on the BSC. Furthermore, the results from the path analysis indicate that IC mediates the effects of KC on the BSC.Practical implicationsThe findings of this study contribute to the extant literature on the relationship between knowledge and organizational performance by demonstrating that knowledge and KC lead to performance when organizations utilize KC activities and leverage them to accumulate IC. Once used effectively, IC will result in a better performance in the knowledge-intensive environments.Originality/valueThis is the first study that investigates how KC contributes to firm performance by incorporating the mediating impact of IC on the BSC. The proposed model and results will help organizations to identify the mechanisms through which KC initiatives improve organizational performance.

Service innovation, service delivery and customer satisfaction and loyalty in the banking sector of Ghana

2019 ◽  
Vol 37 (5) ◽  
pp. 1215-1233 ◽  
Author(s):  
Kong YuSheng ◽  
Masud Ibrahim
Keyword(s):  
Customer Satisfaction ◽  
Service Delivery ◽  
Financial Services ◽  
Structural Equation ◽  
Banking Sector ◽  
Innovation Management ◽  
Service Innovation ◽  
Initial Study ◽  
Equation Modeling ◽  
Content Type

Purpose The concept of innovation is gaining ground steadily in the context of an increasingly competitive and highly volatile banking sector. The purpose of this paper is to find out the role of service innovation (SI) in the relationship between service delivery (SERVD), customer satisfaction (CSAT) and loyalty in the banking sector of Ghana. Design/methodology/approach Drawing from banking and marketing literature, a conceptual framework was developed and tested using data from 450 sampled customers of commercial banks in Ghana. The data were analyzed using partial least squares structural equation modeling. Findings The findings indicate that SI has direct influence on SERVD and CSAT. Again the findings revealed a positive relationship between SERVD, CSAT and bank customer loyalty. Research limitations/implications This study offers theoretical support for the adoption of innovative techniques in service provision and delivery. Originality/value This paper provides an initial study into innovation management in financial services context in an emerging economy.

scholarly journals Towards innovation, co-creation and customers’ satisfaction: a banking sector perspective

2019 ◽  
Vol 13 (3) ◽  
pp. 311-325 ◽  
Author(s):  
Muhammad Imran Malik ◽  
Rizwan Ahsan
Keyword(s):  
Risk Assessment ◽  
Customer Satisfaction ◽  
Banking Sector ◽  
Equation Modeling ◽  
Access To Information ◽  
Content Type ◽  
Information Risk ◽  
Relationship Of ◽  
Number Of Customers ◽  
The Relationship

Purpose Co-creation fosters customer’s involvement for innovation in products/services and is used as a tool to develop competitive edge for better entrepreneurship. Based on limited evidence, the study aims to examine the factors contributing to the co-creation and the relationship of co-creation with customer satisfaction. Design/methodology/approach A sample of 384 customers from selected banks in Pakistan was selected. The study adopted quantitative, explanatory and cross-sectional research design. Structural equation modeling is used for analysis. Findings The results revealed a positive and significant relationship between co-creation with customer satisfaction. Further results revealed that access to information, risk assessment and transparency have a positive relationship with co-creation for innovation. The study is significant for customers and management of banks to understand the implications of co-creation to increase customer satisfaction. Research limitations/implications Few banks with a small number of customers were selected for the study. Practical implications Managers must consider customer’s access to information, risk assessment and transparency of information as necessary factors for co-creation that foster innovation and entrepreneurial opportunities because co-creation strengthens customer satisfaction. Social implications Adopting the co-creation process brings long-lasting harmony between customers and banks, and customers may consider the banks as being socially responsible by inviting the opinions of their customers. Originality/value Model is re-tested in the context of Pakistani banks with selected variables affecting co-creation for innovation. Moreover, the relationship of co-creation with customer satisfaction is examined.

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.

scholarly journals Linking improvisational behavior to customer satisfaction: the relational dynamics

2019 ◽  
Vol 34 (6) ◽  
pp. 1183-1193 ◽  
Author(s):  
Magnus Hultman ◽  
Abena Animwaa Yeboah-Banin ◽  
Nathaniel Boso
Keyword(s):  
Customer Satisfaction ◽  
Structural Equation ◽  
Customer Relationship ◽  
Equation Modeling ◽  
Relational Dynamics ◽  
Relational Context ◽  
Content Type ◽  
Customer Data ◽  
Proposed Model ◽  
The Relationship

Purpose Contemporary sales scholarship suggests that salespersons pursuing customer satisfaction should improvise (think and act on their feet) to find solutions to customers’ emergent problems. A missing link in this literature, however, is the relational context within which improvisation takes place and becomes effective. This study aims to examine how the tone of the salesperson–customer relationship (whether cordial or coercive) drives and conditions salesperson improvisation and its implications for customer satisfaction. Design/methodology/approach The study tests the proposed model using dyadic salesperson–customer data from business-to-business (B2B) markets in Ghana. The relationships are tested using structural equation modeling technique. Findings The study finds that salesperson improvisation is associated with customer satisfaction. It also finds the extent of cordiality between salespersons and their customers predicts but does not enhance the value of improvisation for customer satisfaction. The reverse is true for customer exercised coercive power which is not a significant driver of improvisation but can substantially alter its benefits for the worse. Practical implications By implication, salespersons should improvise more to be able to satisfy customers. However, such improvisation must be tempered with a consciousness of the relationship shared with customers and the level of power they exercise in the relationship. Originality/value Because improvised behavior deviates from routines and may be unsettling for customers, improvising salespersons must first understand whether their customers would be willing to accommodate such deviations. Yet, the literature is silent on this relational context surrounding improvisation. This study, by exploring facilitating and inhibitory relational variables implicated in improvisation, addresses this gap.

The role of prosocial and proactive personality in customer citizenship behaviors

2019 ◽  
Vol 36 (2) ◽  
pp. 288-305 ◽  
Author(s):  
Laee Choi ◽  
Jiyoung Hwang
Keyword(s):  
Customer Satisfaction ◽  
Service Providers ◽  
Positive Impact ◽  
Two Dimensions ◽  
Proactive Personality ◽  
Equation Modeling ◽  
Citizenship Behaviors ◽  
Content Type ◽  
Intention To Continue ◽  
The Relationship

Purpose This study aims to explore customer personality-related antecedents of customer citizenship behaviors (CCBs) that benefit service providers. It also investigates two-step consequences of CCBs: customer satisfaction and intention to continue the relationship. Design/methodology/approach US consumers (n = 665) participated in online surveys regarding three types of service businesses with different levels of customization and customer contact. Data were analyzed using structural equation modeling. Findings Results show a significant, positive impact of the two dimensions of prosocial personality (i.e. other-oriented empathy and helpfulness) and proactive personality on CCBs. Additionally, CCBs increase customer satisfaction and, in turn, intention to continue the relationship. Research limitations/implications This study suggests the importance of customer prosocial and proactive personality as antecedents of CCBs. Beyond intention to participate in CCBs, the present study shows that customers perceived satisfaction from CCBs, resulting in intention to continue the relationship with their service provider. Further research should investigate other types of customer personalities such as conscientiousness and agreeableness. Practical implications Service providers should understand customer personalities that lead to voluntary behaviors that benefit their organizations. This understanding allows the service providers to better communicate with their customers and to receive more assists from customers. Originality/value Previous research has shown that customers’ attitudinal perceptions impact CCBs. In contrast, this study highlights the strong and positive impact of customer personalities, prosocial and proactive personality, on CCBs. Another significant contribution of this study is that it incorporates the potential consequences of CCBs.

The Effect of Pleasure and Arousal on Satisfaction and Word-of-Mouth: An Empirical Study of the Indian Banking Sector

2013 ◽  
Vol 38 (2) ◽  
pp. 95-104 ◽  
Author(s):  
Gopal Das
Keyword(s):  
Customer Satisfaction ◽  
Conceptual Model ◽  
Structural Equation ◽  
Word Of Mouth ◽  
Banking Sector ◽  
Positive Impact ◽  
Sampling Procedure ◽  
Equation Modeling ◽  
Public And Private Sector ◽  
The Impact

During the last decade, the Indian banking sector has shown a remarkable advancement in terms of innovation, growth, and value creation. Behind this development of the Indian banking sector, several factors like customer satisfaction and word-of-mouth (WOM) are responsible. Literature has reported that pleasure and arousal play an important role in customer satisfaction. Investigations have been carried out on the influence of pleasure and arousal on behavioural intentions including satisfaction and WOM. However, there has been no such study for the banking sector. This gap in research has motivated this study. This paper suggests a conceptual model in which pleasure and arousal directly influence satisfaction and WOM. It also tests the impact of satisfaction on WOM. Based on prior literature, several hypotheses stating the linkages among pleasure, arousal, satisfaction, and word-of-mouth were developed. Russell�s framework for pleasure and arousal (emotion) formed the basis of the model. For the purpose of the study, face-to-face interviews with a structured questionnaire were conducted to collect data. Participants included customers above 18 years from both public and private sector banks in three cities namely, Kolkata, Durgapur, and Haldia of West Bengal, India. Data collection was done with the use of area sampling procedure. Out of 500 questionnaires administered, about 310 questionnaires were useable for analysis. The data analysis was done with SPSS 19 and AMOS 18. Structural equation modeling (SEM) using AMOS 18 was applied to explore the links between the constructs in the conceptual model. The overall fit of the conceptual model was assessed using several indices furnished in the AMOS output. The fit index results suggested model fitness with the data. The results of the study indicate that: Pleasure has significant positive and negative impacts on satisfaction and WOM respectively. Arousal has significant negative and positive impact on satisfaction and WOM. Satisfaction has positive significant impact on WOM.

The impact of transformational leadership on employees’ creativity

2018 ◽  
Vol 41 (1) ◽  
pp. 113-132 ◽  
Author(s):  
Taghrid S. Suifan ◽  
Ayman Bahjat Abdallah ◽  
Marwa Al Janini
Keyword(s):  
Transformational Leadership ◽  
Organizational Support ◽  
Structural Equation ◽  
Perceived Organizational Support ◽  
Banking Sector ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to examine the effect of transformational leadership on employees’ creativity in the Jordanian banking sector through the mediating effect of perceived organizational support. Design/methodology/approach The study is based on survey data collected from 369 employees working in Jordanian banks. Validity and reliability analyses were performed, and direct and indirect effects were tested using structural equation modeling. Findings The results indicate that transformational leadership positively affects some dimensions of employees’ creativity and perceived organizational support. However, perceived organizational support is found to not be significantly related to some dimensions of employees’ creativity. Additionally, the mediating effect of perceived organizational support on the relationship between transformational leadership and some dimensions of employees’ creativity is found to not be significant. Originality/value This paper is one of the first to examine the relationship between transformational leadership and employees’ creativity through perceived organizational support, especially in an Arab country and in the banking sector.

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