Building customer loyalty in digital banking

2017 ◽  
Vol 35 (6) ◽  
pp. 858-877 ◽  
Author(s):  
Anthony Larsson ◽  
Yamit Viitaoja
Keyword(s):  
Customer Loyalty ◽  
Interpretative Phenomenological Analysis ◽  
Customer Relations ◽  
Content Type ◽  
Bank Managers ◽  
Perceived Effects ◽  
The Relationship ◽  
Digital Channels ◽  
Depth Interviews ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the perceptions among representatives from various established major Swedish banks in how they experienced the digitalisation process and its impact on customer relations. Design/methodology/approach Data were gathered through a series of semi-structured in-depth interviews with managers representing different banks with profound insight in the banks’ digitalisation process and its effects on customer relations/satisfaction and digitalisation. Findings The results showed that half of the respondents experienced the same area posing the greatest challenge. This was rooted in the perceived insecurity around what the bank assumed to know about its customers’ proficiency and experiences, and what the customers appeared to actually know. Research limitations/implications This study was conducted as an Interpretative Phenomenological Analysis (IPA) study of various major Swedish banks, which may limit the external validity of its results. Other limitations are also discussed in the paper. Practical implications By identifying the aspects of a digital banking that bank managers perceive to be more advantageous or challenging towards cultivating the relationship with its customers, bank managers should garner an awareness of being able to more effectively develop appropriate strategies in addressing the bank’s customers. Originality/value The area is vastly under-researched. The study contributes to the literature of digital channels and its perceived effects on customer loyalty from a managerial perspective. The results show that some of the present customer loyalty theory needs to be revised in order to accommodate for the era of digitalisation.

How the personality of retail bank customers interferes with the relationship between service quality and loyalty

2015 ◽  
Vol 33 (1) ◽  
pp. 41-57 ◽  
Author(s):  
Mohammad Ahmad Al-hawari
Keyword(s):  
Service Quality ◽  
Personality Traits ◽  
Customer Loyalty ◽  
Design Methodology ◽  
Retail Banking ◽  
Content Type ◽  
Bank Managers ◽  
The Relationship ◽  
Practical Implications

Purpose – The purpose of this study was to test how customers’ personality traits affect the importance of service quality in triggering customer loyalty. Design/methodology/approach – A survey was used to collect information from respondents about their attitude toward and experiences with their primary bank. The same survey was also used to explore respondents’ personality traits. AMOS 18 was used to test the hypothesized relationships. Findings – The findings, consistent with the literature, show that the overall quality of service affects customer loyalty. Services quality plays significant and more important role in triggering customer loyalty for customers that tend to be low on most of the five personality traits. For customers high on most of the personality traits, quality plays less of a role in triggering customer loyalty. Practical implications – This study demonstrates how bank managers could use their customers’ personality traits to offer the best services and, ultimately, foster stronger relationships. Originality/value – Very few papers speculated and non-tried to investigate the effect of customers’ personality traits on the quality-loyalty relationship within the context of retail banking. Thus, this paper fills this gap.

scholarly journals A meaning-based framework for customer loyalty

2020 ◽  
Vol 48 (8) ◽  
pp. 825-843 ◽  
Author(s):  
Elina Närvänen ◽  
Hannu Kuusela ◽  
Heli Paavola ◽  
Noora Sirola
Keyword(s):  
Customer Loyalty ◽  
Meaning Making ◽  
Two Dimensions ◽  
Alternative View ◽  
Content Type ◽  
Group Data ◽  
Focus Group Data ◽  
Retail Setting ◽  
Depth Interviews ◽  
Practical Implications

PurposeThis paper's purpose is to develop a meaning-based framework for customer loyalty by examining how consumers make sense of customer loyalty through meanings and metaphors.Design/methodology/approachA qualitative study based on in-depth interviews and focus group data in the retail context was conducted with Finnish customers. The data were analysed with qualitative data analysis techniques such as the constant comparative technique.FindingsThe empirical findings comprise eight loyalty meanings characterised by two dimensions. The first dimension is reflexive vs. routinised, and the second dimension is private vs. social. The loyalty types are dimensionalised through four metaphors: loyalty as freedom of choice; as being conventional and binding; and as belongingness.Practical implicationsThe findings improve the way customer loyalty currently is understood in the retail setting. The paper proposes that customer insight that utilises thick data can be used to grasp loyalty meanings. These data are rich in context and detail, and they take into account customers' everyday lives. Utilising thick data in the form of storytelling fuels customers' meaning-making related to customer loyalty, potentially enriching their relationship with the retailer.Originality/valueCustomer loyalty has been driven largely by a transactional and company-centric perspective. This article presents an alternative view of customer loyalty that accounts for the variety of meanings that customers may assign to their loyalty-related thoughts and behaviours.

Relationship between governance mechanisms and contract performance

2019 ◽  
Vol 69 (1) ◽  
pp. 44-60 ◽  
Author(s):  
Dayashankar Maurya ◽  
Amit Kumar Srivastava
Keyword(s):  
Field Research ◽  
Incomplete Contracts ◽  
Critical Dimension ◽  
Governance Structure ◽  
Governance Mechanisms ◽  
Content Type ◽  
Contract Performance ◽  
The Relationship ◽  
Depth Interviews ◽  
Practical Implications

Purpose The purpose of this paper is to explain the variation in the relationship between governance mechanisms and the effect of the relationship on contract performance, especially in controlling partner opportunism. Design/methodology/approach This study conducts a comparative case analysis of contract governance of “National Health Insurance Program” in India. The data are collected using field research through in-depth interviews and direct observation across three states in India. Findings The authors find that the governance mechanisms continue to complement and substitute, both in a dynamic manner, but until aligned with the nature of transaction, they are ineffective to mitigate opportunism, a critical dimension of contract performance. Inappropriate governance mechanisms inflate the gaps in incomplete contracts, resulting in partner opportunism. Research limitations/implications The study draws findings from healthcare context and service-based contracting; therefore, the applicability of this study may vary in other contexts. Practical implications The paper highlights the need for building flexibility in the governance structure while designing contracts. Further, managers need to combine both governance mechanisms dynamically to align with the nature of the transaction to control partner opportunism. Originality/value The authors contribute to the existing debate on the conundrum of the relationship between governance mechanisms and provide a new explanation. The authors propose that it is not the specific governance mechanisms but the alignment of the governance mix with the nature of the transaction that determines the contract performance, especially control of partner opportunism.

scholarly journals The CEO-Chair relationship from a relational leadership perspective

2016 ◽  
Vol 37 (8) ◽  
pp. 1135-1146 ◽  
Author(s):  
Satu Koskinen ◽  
Lämsä Anna-Maija
Keyword(s):  
Leadership Practices ◽  
Design Methodology ◽  
Empirical Investigation ◽  
Chief Executive ◽  
Relational Leadership ◽  
Content Type ◽  
Prior Literature ◽  
The Relationship ◽  
Depth Interviews ◽  
Practical Implications

Purpose The purpose of this paper is to conceptualise how the chief executive officer (CEO) and chairperson of the board (Chair) construct their relationship through their leadership practices, and to analyse the meaning of these practices to the relationship. An empirical investigation from both partners’ viewpoint is conducted. Design/methodology/approach The data were gathered through in-depth interviews with 16 CEOs and 16 chairpersons from the same companies. Content analysis was used to analyse the data. Findings Four types of leadership practices in the CEO-Chair relationship were conceptualised: emergent practices on company- and person-related issues, and scheduled practices on company- and person-related issues. For the effectiveness of the relationship, emergent practices on company-related issues seem to be most important. Research limitations/implications The basing of the analysis on interviewees’ descriptions rather than on the observation of leadership practices in action can be considered a limitation. Practical implications Knowledge of leadership practices in the CEO-Chair relationship and their meaning to the relationship can be utilised in leadership training. Originality/value This research contributes to the relational leadership literature by highlighting a specific leadership relationship, the CEO-Chair relationship, from both partners’ viewpoint. Additionally, the value of the study is that it shows that the CEO-Chair relationship is more multifaceted than traditionally assumed in prior literature.

Perceptions of culinary education and chef apprenticeships in Ireland

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Emily Gray ◽  
Kathleen Geraldine Farrell
Keyword(s):  
Quantitative Research ◽  
Career Guidance ◽  
Small Sample ◽  
Research Approach ◽  
Content Type ◽  
Key Issues ◽  
The Relationship ◽  
Depth Interviews ◽  
Method Approach ◽  
Practical Implications

PurposeThe relationship between the shortage of chefs for the hospitality industry in Ireland and the lack of uptake for chef apprenticeship is an underexplored topic. This study investigates attitudes to chef training and chef apprenticeship among industry representatives and second-level students.Design/methodology/approachUsing a mixed method approach, the qualitative research comprised of in-depth interviews conducted with key experts in the industry and from the educational sector. The quantitative research approach comprised of questionnaires conducted with second-level students.FindingsThe research results found that there is a stigma attached to chef apprenticeships, and this is part of the reason that the apprenticeship has low uptake. However, it was also found that working conditions in the industry were a real concern.Research limitations/implicationsThis is an exploratory study with a small sample of interviewees and survey respondents. However, it is a first step towards understanding some of the key issues relating to low uptake for chef apprenticeship.Practical implicationsAccess for second-level students to information regarding the benefits of a chef apprenticeship is lacking. It is necessary to convince students that an apprenticeship is as beneficial as a degree. Training for career guidance councillors is needed.Originality/valueThere is a dearth of research on the low uptake to chef apprenticeship. Research is recommended into how to re-brand chef apprenticeship.

Study of social ties as one kind of switching costs: a new typology

2015 ◽  
Vol 30 (5) ◽  
pp. 648-661 ◽  
Author(s):  
Wenhua Shi ◽  
Jianmei Ma ◽  
Chen Ji
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Switching Costs ◽  
Social Ties ◽  
Equation Model ◽  
Content Type ◽  
Research Results ◽  
Moderate Effect ◽  
The Relationship ◽  
Practical Implications

Purpose – The purpose of this paper is to study how customers’ social ties can be performed as one kind of switching costs, which can affect customer loyalty and have a moderate effect on the relationship between customer satisfaction and customer loyalty, and to improve the typology study of switching costs and give suggestions for companies about how to strengthen customer loyalty. Design/methodology/approach – An empirical research is implemented to prove the effectiveness of the study model, using factor analyses, regression analyses and structural equation model analyses as data analyses approaches. Findings – The research results prove the direct and moderate effect of social ties loss costs, and the effectiveness and reasoning of the new typology of switching costs. Practical implications – According to the research results, companies can take measures to enhance customers’ social ties loss costs properly so as to strengthen their loyalty. Originality/value – This research comes up with a new kind of relational switching costs, social ties loss costs and proves its effects, thus improving the typology of switching costs, and makes practical suggestions for companies.

Does religiosity matter for customer loyalty? Evidence from halal cosmetics

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dwi Suhartanto ◽  
David Dean ◽  
Ira Siti Sarah ◽  
Raditha Hapsari ◽  
Fatya Alty Amalia ◽  
...  
Keyword(s):  
Customer Satisfaction ◽  
Product Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Emotional Attachment ◽  
Cosmetic Products ◽  
Content Type ◽  
The Impact ◽  
The Relationship ◽  
Practical Implications

Purpose This paper aims to assess customer loyalty towards halal cosmetics using three integrated loyalty routes of product quality, emotional attachment and religious determinants. Design/methodology/approach The data for this study were gathered from 457 s cosmetics customers. Variance-based structural equation modelling was applied to assess the association between product quality, emotional attachment, religiosity, customer satisfaction and customer loyalty. Findings This study reveals that for halal cosmetics, customer loyalty is driven more by emotional attachment and product quality than by religiosity. Further, the religiosity does not moderate the relationship between customer satisfaction and customer loyalty. Finally, this study reveals that the impact of emotional attachment and product quality on customer loyalty is partly through strengthening customer satisfaction. Practical implications This study provides an opportunity for halal cosmetics managers to increase customer loyalty through the development of emotional attachment and product quality. To develop customer loyalty towards their halal cosmetic products, this study suggests that halal cosmetics managers should offer high-quality products and continuously innovate their cosmetic products. Originality/value This is an early empirical study attempting to examine the link between religiosity and customer loyalty in halal cosmetic products.

Entrepreneurial marketing and bank performance in Egypt: is environmental turbulence a missing link?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Omnia Abdelazeem Hilal ◽  
Ahmed Adel Tantawy
Keyword(s):  
Environmental Turbulence ◽  
Equation Modeling ◽  
Bank Performance ◽  
Content Type ◽  
Entrepreneurial Marketing ◽  
Bank Managers ◽  
The Relationship ◽  
Moderating Role ◽  
Practical Implications

Purpose Current research argues that there is a positive relationship between entrepreneurial marketing (EM) and business performance. However, this relationship has only been discussed in a relatively stable environmental situation and it is not clear whether such a relationship remains positive during environmental turbulence (ET) and whether organizations adopting EM activities during such turbulence, will change their behavior to enhance their performance. Thus, this study aims to examine the relationship between EM and the performance of Egyptian banks. Furthermore, building upon environmental contingency theory, this study examined the moderating role of ET on the relationship between EM and the performance of banks in Egypt. Design/methodology/approach Data were collected during the period March–June 2020 using a sample of 358 employees working in 20 banks in Egypt. Online surveys and self-administered questionnaires were used to collect the required data during the COVID-19 pandemic. The hypotheses were tested through structural equation modeling using SPSS 25. Findings The main results of this study indicated that EM and bank performance are positively related. Results also showed that ET and technological turbulence positively moderates this relationship, i.e. this relationship is more robust in highly turbulent business environments than in more stable environments. Practical implications This study provides useful managerial and practical implications. Fruitful insights can be communicated to bank managers in Egypt on the importance of EM and its implications for performance. With an increased understanding of EM, bank managers will come to understand that EM is critical for the sustainability and development of their banks. Originality/value An extensive review of the existing research material indicates that this is the first study to examine the relationship between EM and Egyptian banking performance and the moderating role of ET, particularly in large organizations.

scholarly journals The chairperson and CEO roles interaction and responses to strategic tensions

2018 ◽  
Vol 18 (1) ◽  
pp. 143-164 ◽  
Author(s):  
Filipe Morais ◽  
Andrew Kakabadse ◽  
Nada Kakabadse
Keyword(s):  
Shared Leadership ◽  
Design Methodology ◽  
Listed Companies ◽  
Content Type ◽  
Individual Perceptions ◽  
The Uk ◽  
Role Boundaries ◽  
The Relationship ◽  
Depth Interviews ◽  
Practical Implications

Purpose The purpose of this paper is to use Stewart’s model of role as a lense from which to explore chairperson and CEO role dynamics in addressing strategic paradox and tension. Design/methodology/approach The paper draws on 29 semi-structured, in-depth interviews with chairpersons and CEOs of UK-listed companies. Interview data are subjected to role analysis using Stewart’s (1982) Demands-Constraints-Choice (DCC) model of role. Findings Findings indicate that relationship levels of trust, communication and chairperson time enable strategic tensions to be raised and confronted in the relationship reducing defensiveness. Two distinct approaches to handle strategic tensions are found. The CEO-led approach predominates and rests on less flexible role boundaries, requiring the chairperson to proactively identify strategic tensions and perform an advisory/mentoring role. The shared leadership approach, less prevalent, rests on highly flexible role boundaries where the skills and experience of each incumbent become more relevant, enabling the separation of efforts and integration of strategic tensions in the relationship in a “dynamic complementarity of function”. Research limitations/implications The paper only applies to the UK context and is limited to contexts where CEO and chairperson roles are separate. The paper draws on individual perceptions of chairperson and CEOs (i.e. not pairs). Practical implications The paper provides insights to practicing CEOs and chairperson on two distinct ways of working through strategic paradox and tensions. Originality/value The paper adds to the scarce literature at chairperson and CEO roles and strategic paradox and tension.

Does customer sociability matter? Differences in e-quality, e-satisfaction, and e-loyalty between introvert and extravert online banking users

2014 ◽  
Vol 28 (7) ◽  
pp. 538-546 ◽  
Author(s):  
Mohammad A Ahmad Al-Hawari
Keyword(s):  
Design Methodology ◽  
Online Banking ◽  
Banking Services ◽  
Content Type ◽  
Final Sample ◽  
Bank Managers ◽  
The Relationship ◽  
Self Administered Questionnaire ◽  
Practical Implications ◽  
Different Levels

Purpose – The purpose of this study is to investigate the relationships between e-quality, e-satisfaction and e-loyalty and test how these relationships vary across different levels of customer sociability in the UAE banking industry. Design/methodology/approach – The relative importance of customer sociability in the relationships between e-quality, e-satisfaction and e-loyalty was examined. A self-administered questionnaire was developed, and data were collected from a final sample of 245 bank customers. The study’s conceptual model and four hypotheses were tested using AMOS18. Findings – E-quality influences e-satisfaction, which, in turn, affects customer e-loyalty. This study’s findings confirm that the relationships between e-quality, e-satisfaction and e-loyalty are stronger if the online banking user is an introvert (less social) rather than an extravert (very social). Practical implications – This study demonstrates how bank managers could use the sociability level of their customers to manage the relationships between e-quality, e-satisfaction and e-loyalty. Originality/value – The key contribution of this paper is that it demonstrates how the customer sociability level might affect the relationship between customers and online banking services.

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