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.

Service quality, satisfaction, trust, and loyalty: the moderating role of main-bank and wealth status

2019 ◽  
Vol 37 (1) ◽  
pp. 278-302 ◽  
Author(s):  
Karin Boonlertvanich
Keyword(s):  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Retail Banking ◽  
Equation Modeling ◽  
Wealth Status ◽  
Cross Sectional ◽  
Content Type ◽  
Behavioral Loyalty ◽  
Main Bank

PurposeThe purpose of this paper is to develop a comprehensive model representing the relationships among service quality, customer satisfaction, trust and loyalty in a retail banking service. Because many banks now emphasize acquiring more high-wealth and main-bank customers, this study also focuses on investigating the moderating roles of main-bank and wealth status on such relationships.Design/methodology/approachThis study applies a hierarchical model to measure service quality in line with recent advances in the general-marketing and consumer-behavior literature. A total of 400 valid samples were obtained from customers of a large commercial bank in Thailand. Data were analyzed using partial least squares structural equation modeling and multigroup analysis.FindingsCustomer-perceived service quality directly and indirectly affects, via satisfaction and trust, attitudinal and behavioral loyalty. Service quality affects customer loyalty less if the customer holds main-bank status. It affects behavioral loyalty less for high-wealth customers than regular customers; however, its impacts on attitudinal loyalty are identical. Main-bank and wealth status have a co-moderating impact on the relationship between service quality and customer loyalty.Research limitations/implicationsThis study was conducted on a cross-sectional basis; further, longitudinal analysis could help to assess causality and time-dependent effects among variables.Practical implicationsThe present study reconceptualizes the loyalty model, forging a deeper understanding of the moderating effects of main-bank and wealth status and thus helping banks to formulate better strategies to win customer loyalty.Originality/valueThis study aims to contribute to further discussions regarding the direct and indirect effects of service quality on loyalty to help banks formulate effective strategies for acquiring main-bank and high-wealth customers.

Exploring the antecedents of retail banks’ reputation in low-bankarization markets: brand equity, value co-creation and brand experience

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Luís Daniel Martillo Jeremías ◽  
Ana Isabel Polo Peña
Keyword(s):  
Financial Institutions ◽  
Brand Equity ◽  
Low Income ◽  
Financial Literacy ◽  
Structural Equation ◽  
Banking Sector ◽  
Retail Banking ◽  
Equation Modeling ◽  
Brand Experience ◽  
Content Type

PurposeThe present study aims to propose and validate a model to measure certain variables that may contribute to increasing the bankarization rate (uptake of retail banking services) among developing-economy populations characterized by poor financial literacy and low income levels.Design/methodology/approachA quantitative empirical study is carried out in the retail banking sector of a country with low-bankarization rates. Using a self-administered questionnaire distributed online, structural equation modeling is applied to analyze the relationships between value co-creation, brand experience, brand equity and reputation.FindingsThe results show that brand equity is an antecedent of reputation that values co-creation, and brand experience positively influences brand equity and that values co-creation that positively influences brand experience.Social implicationsThe bankarization rate of a developing country is generally taken as an indicator of the socioeconomic wellbeing of its population. Where there is a low-bankarization rate, this renders it more difficult for financial institutions to build their reputation to attract new customers and retain existing ones. Strategies are, therefore, proposed to improve the reputation of financial institutions in such settings and, thus, contribute to increasing the bankarization rate.Originality/valueThe findings of this study provide an original perspective that offers a deeper understanding of the mechanisms that enable banks operating in low-bankarization markets to enhance their reputation through strategies based on customer–company interaction and branding (with the variables of brand equity, brand experience and value co-creation).

Can forensic accounting impact sustainable corporate governance?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ali Rehman ◽  
Fathyah Hashim
Keyword(s):  
Corporate Governance ◽  
Structural Equation ◽  
Survey Design ◽  
Equation Modeling ◽  
Governance System ◽  
Cross Sectional Survey ◽  
Design Data ◽  
Cross Sectional ◽  
Content Type ◽  
Organizational Policies

Purpose The purpose of this paper is the measurement of forensic accounting’s (FA) impact on sustainable corporate governance (SCG) within Omani public listed companies. Beyond merely cataloging the latest criminal innovations and SCG problems, this paper offers a path forward to overcome the myriad threats that can harm the organization and society. FA and SCG can achieve, anticipate and prevent tomorrow’s fraud today before organizations reach the point of no return. Design/methodology/approach For this study, FA is an independent variable and SCG is the dependent variable. This study used a descriptive cross-sectional survey design. Data are collected by internet-based tool and analyzed via partial least squares structural equation modeling and Statistical Package for Social Sciences. Findings Result suggests that FA has a significant direct impact over SCG; moreover, FA can become the part of governance management toward the elimination of fraud and achievement of SCG. Practical implications This study can assist regulators, professional bodies and organizations in amending their codes of corporate governance and organizational policies by introducing the SCG clauses and making FA as a compulsory part of governance system. Originality/value Up to the best of the knowledge of researchers, there is no study conducted before which verifies the FA impact on SCG; moreover, previous relevant studies verify only one constituent for SCG, whereas this study is identifying three constituents necessary for SCG.

A confirmatory factor analysis for SERVPERF instrument based on a sample of students from Syrian universities

2015 ◽  
Vol 57 (3) ◽  
pp. 343-359 ◽  
Author(s):  
Ali Bassam Mahmoud ◽  
Bayan Khalifa
Keyword(s):  
Service Quality ◽  
Structural Equation ◽  
Support Staff ◽  
Three Dimensions ◽  
Equation Modeling ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Higher Education System

Purpose – The purpose of this paper is to confirm the factorial structure of SERVPERF based on an exploration of its dimensionality among Syrian universities’ students. It also aimed at assessing the perceived service quality offered at these universities. Design/methodology/approach – A cross-sectional survey was conducted targeting students at Syrian universities. Using a pilot sample of 40 students, the authors developed their hypotheses. Thereafter, based on a sample of 259 students, the hypotheses were tested using structural equation modeling and one-sample t-test. Findings – The findings revealed that SERVPERF in the Syrian universities’ context was a three-factor instrument consisting of the three dimensions: faculty-individualized attention, support staff helpfulness, and support staff empathy. Moreover, the findings showed that students at Syrian universities hold negative perceptions toward all of the three service quality dimensions provided by their universities. Practical implications – Given the imperative need for universities to monitor and improve the quality of their services, this study can help Syrian universities’ administrations understand the perceptions of their students toward services offered, which can help them formulate effective marketing strategies. Originality/value – This paper came to be one of the first studies that attempted to assess the perceived quality of services offered through the Syrian higher education system. Additionally, this study pioneered through drawing a factorial picture for SERVPERF at the Syrian Arab context.

scholarly journals You abuse but I will stay

2017 ◽  
Vol 36 (7) ◽  
pp. 899-914 ◽  
Author(s):  
Muhammad Kashif ◽  
Eliane Braganca ◽  
Zainudin Awang ◽  
Ernest Cyril De Run
Keyword(s):  
Job Stress ◽  
Emotional Exhaustion ◽  
Structural Equation ◽  
Banking Sector ◽  
Equation Modeling ◽  
Combined Effects ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Bank Managers

Purpose The purpose of this paper is to investigate the combined effects of customer aggression, job stress, and emotional intelligence (EI) on job satisfaction and organizational turnover among managers from a developing country, i.e. Pakistan. Design/methodology/approach Data are collected from 230 respondents working as bank managers in Pakistan by means of a cross-sectional survey. The collected data are analyzed by employing a structural equation modeling (SEM) technique. Findings The employees perceive that job stress positively influences emotional exhaustion among employees. Furthermore, EI negatively influences job exhaustion to minimize the potential to lead it through to organizational turnover. Originality/value The combined effects of customer- and organization-related elements have been scarcely investigated – the heart and soul of contribution regarding this research. The moderation of EI to lessen the emotional exhaustion is a significant contribution to this study. Finally, the context of Pakistan’s banking sector is also unique to this study.

CRM, service quality and organizational performance in the banking industry: a comparative study of conventional and Islamic banks

2020 ◽  
Vol 38 (5) ◽  
pp. 1081-1106 ◽  
Author(s):  
Hind Lebdaoui ◽  
Youssef Chetioui
Keyword(s):  
Service Quality ◽  
Organizational Performance ◽  
Customer Service ◽  
Structural Equation ◽  
Banking Industry ◽  
Positive Impact ◽  
Equation Modeling ◽  
Islamic Banks ◽  
Content Type ◽  
Conventional And Islamic Banks

PurposeThis paper aims to examine a model that uses customer service quality as an intervening mechanism in the relationship between customer relationship management (CRM) practices and organizational performance in two different banking structures: conventional and Islamic. The study focuses on organizational and technological practices of CRM, as both have been demonstrated to be critical to CRM success.Design/methodology/approachThe analysis is based on responses from 247 managers from conventional banks and 141 managers from Islamic banks operating in Morocco using a self-administered questionnaire. The partial least squares structural equation modeling (PLS-SEM) technique is employed for data analysis.FindingsFindings demonstrate that customer service quality plays a mediating role between CRM practices (organizational and technological) and organizational performance in both conventional and Islamic banks. Our results confirm the positive impact of CRM practices on organizational performance in the two banking structures.Practical implicationsThis study enhances our understanding of how CRM practices contribute to improving customer service quality and organizational performance in both conventional and Islamic banks. Bank managers, who aim to deliver superior service quality and achieve customer satisfaction and retention, should capitalize on the benefits of implementing CRM organizational and technological practices.Originality/valueThe present paper bridges a gap pertaining to key practices and factors that impact CRM success in the banking industry. It is the first of its kind to investigate the effect of CRM practices on organizational performance with customer service quality as a mediating variable. The study also contributes to the field of CRM literature, as CRM has rarely been addressed in an Islamic banking context.

Influence of service quality and corporate image on the satisfaction of patients with Brazil’s National Cancer Institute

2019 ◽  
Vol 13 (4) ◽  
pp. 447-468 ◽  
Author(s):  
Eduardo Dias Coutinho ◽  
Paulo Roberto da Costa Vieira ◽  
Cecília Lima de Queirós Mattoso ◽  
Irene Raguenet Troccoli ◽  
Marcos Jose Pereira Renni
Keyword(s):  
Service Quality ◽  
National Cancer Institute ◽  
Structural Equation ◽  
Causal Relation ◽  
Positive Influence ◽  
Corporate Image ◽  
Equation Modeling ◽  
Content Type ◽  
Patients Satisfaction

Purpose The purpose of this paper is to better understand the influence of service quality and corporate image of Brazil’s National Cancer Institute (INCA) on the satisfaction of its outpatients. Design/methodology/approach The study is quantitative, with data collected from a self-administered structured questionnaire answered by a sample of 434 outpatients of Hospital do Câncer I, the largest and oldest hospital operated by the INCA. The data were treated with covariance-based structural equation modeling. Findings The results indicated that the corporate image of the INCA was the main factor having a positive influence on the patients’ satisfaction, followed by the quality of the services rendered by physicians and the quality of the hospital’s facilities. Originality/value The study shows that unlike indicated by the theory, quality does not have a direct impact on satisfaction with the nursing services, but rather an indirect impact via corporate image. Even though part of the explanation can be the fact that only outpatients were surveyed, who have less interaction with the nursing team than do inpatients, this result shows the strength of the hospital’s corporate image regarding patients’ satisfaction. Besides this, the study identified that hospitals with a strong corporate image transmit to patients the perception that they are being treated by technically qualified professionals, thus increasing the chances of cure and reduced suffering. This is fundamental for patients’ satisfaction, as most are unable to understand the technical attributes of the service. The study adds to the scarce Brazilian literature on the causal relation between the image of hospitals and their patients’ satisfaction.

Customer’s patronage decision toward health insurance products

2018 ◽  
Vol 30 (1) ◽  
pp. 62-83 ◽  
Author(s):  
Muhammad Sabbir Rahman ◽  
Fadi Abdel Muniem Abdel Fattah ◽  
Mahmud Zaman ◽  
Hasliza Hassan
Keyword(s):  
Factor Analysis ◽  
Health Insurance ◽  
Service Quality ◽  
Structural Equation ◽  
Service Providers ◽  
Dominant Role ◽  
Equation Modeling ◽  
Cross Sectional ◽  
Content Type

Purpose The purpose of this paper is to examine the influence of service quality, customer’s satisfaction and religiosity on customer’s patronage decision toward health insurance products. The paper also assesses the influence of religiosity on customer’s patronage decision. The influence of customers’ satisfaction as mediation between service quality and customer’s patronage decision was also measured. Design/methodology/approach A structured questionnaire was developed and administered to a sample of 200 respondents. This research applied the exploratory factor analysis, the confirmatory factor analysis and the structural equation modeling to test the proposed hypotheses. Findings The findings indicate that customers’ religiosity behavior has a significant influence on customer’s patronage decision for selecting health insurance products. The results also indicated that the role of customer’s satisfaction as a mediator in between the relationship of service quality and customer’s patronage decision is significant. Research limitations/implications This research is a cross-sectional study consisting of 200 respondents. In addition, the elements of the sample were Malaysian customers using health insurance products and services. Practical implications This study suggests that customers of health insurance products are more concerned with perceived service quality and perceived satisfaction. The role of religiosity also plays a dominant role. As a result, managers of the health insurance service providers need to focus more on benefits of service varieties centered toward their target customers in order to gain higher patronage decision of health insurance products. Originality/value The study sought to address the gap of religiosity aspects in health insurance products through intensive literature and offer a conceptual framework that tested service quality, customer’s satisfaction and religiosity in one integrated model under the perspective of health insurance industry. More importantly, it also examines the influence of religiosity on patronage behavior, thus shedding insights into the opportunities for understanding consumers in detail.

Mediators of the relationship between service quality and customer loyalty

2017 ◽  
Vol 35 (3) ◽  
pp. 540-556 ◽  
Author(s):  
Charles Makanyeza ◽  
Lovemore Chikazhe
Keyword(s):  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Corporate Image ◽  
Bank Failures ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
Positive Direct ◽  
The Relationship

Purpose There is a dearth of studies that have investigated mediators of the effect of service quality on customer loyalty under the conditions prevailing in Zimbabwe; where bank customers’ confidence in the banking system has been dented by bank failures. Therefore, the purpose of this paper is to investigate the mediators of the effect of service quality on loyalty among bank customers in Zimbabwe. Design/methodology/approach A cross-sectional survey of 310 bank customers was conducted in Chinhoyi, Zimbabwe. A questionnaire with Likert type questions was used to collect data. Customers were randomly intercepted as they walked out of five major banks. Structural equation modelling was used to test the proposed relationships. Findings The study found that service quality, satisfaction and corporate image all have positive direct effects on loyalty. It was also found that satisfaction and corporate image all mediate the effect of service quality on loyalty. Research limitations/implications The study was conducted in Chinhoyi, one of the emerging towns in Zimbabwe. There is a need to conduct more similar studies in other parts of the world in future in order to have a better understanding of this subject. Practical implications Banks are advised to address issues to do with service quality, customer satisfaction and corporate image when designing marketing programmes intended to increase customer loyalty. Originality/value Studies that have investigated mediators of the relationship between service quality and customer loyalty in banking environments such as in Zimbabwe are scarce. This study was conducted to address this knowledge gap. Relationships among customer loyalty and its antecedents are not likely to change due to conditions prevailing in a particular banking environment.

Developing a service value measurement scale in retail banking services

2018 ◽  
Vol 36 (4) ◽  
pp. 616-633 ◽  
Author(s):  
Sanjit Kumar Roy ◽  
Rik Paul ◽  
Ali Quazi ◽  
Bang Nguyen
Keyword(s):  
Structural Equation ◽  
Banking Sector ◽  
Retail Banking ◽  
Measurement Scale ◽  
Equation Modeling ◽  
The West ◽  
Banking Services ◽  
Content Type ◽  
Service Value ◽  
Value Measurement

Purpose The purpose of this paper is to develop and validate a scale for measuring consumers’ perceived service value in the Indian retail banking services. This purpose is rooted in the absence of consensus on what constitutes service value and how to measure such value in the above context. Design/methodology/approach The scale development procedure comprised qualitative and quantitative approaches. A list of possible measurement items was compiled based on literature review and expert opinion through focus groups. Data were collected from a sample of 442 respondents representing the Indian retail banking sector using survey instrument and were analyzed using the structural equation modeling. Findings The study revealed a seven-dimensional scale for measuring service which includes service equity, service quality, customer intimacy, product leadership, operational effectiveness, customer communication, and perceived sacrifice. Thus, the scale emerging from this study is consistent with established scales and is applicable to the Indian retail services setting. This study contributes to the knowledge gap by confirming that the west-centric service value measurement scale is moderately applicable to the services sector in India. Originality/value This research is a direct response to calls from the leading marketing pundits to explore the validity and applicability of the existing marketing constructs and models originated in the west to Indian markets. Keeping in mind the established service value measurement scale, this study develops and validates a seven-dimensional scale for measuring service value in an Indian setting with novel sub-dimensions.

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