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).

Building brand equity in retail banks: the case of Trinidad and Tobago

2014 ◽  
Vol 32 (4) ◽  
pp. 300-320 ◽  
Author(s):  
Meena Rambocas ◽  
Vishnu M. Kirpalani ◽  
Errol Simms
Keyword(s):  
Customer Satisfaction ◽  
Trinidad And Tobago ◽  
Brand Equity ◽  
Structural Equation ◽  
Banking Sector ◽  
Retail Banking ◽  
Content Type ◽  
Mediating Role ◽  
Market Expansion

Purpose – The purpose of this paper is to investigate an integrated model mapping the influence of brand affinity, customer experience, and customer satisfaction on brand equity in retail banking. Design/methodology/approach – Data were collected from 315 banking customers in Trinidad and Tobago through personally administered structured questionnaires and analyzed with Structural Equation Modelling. Findings – The findings showed the mediating role of customer satisfaction in brand equity relationships. The results also showed the pivotal role of brand affinity, customer satisfaction, and service experience in explaining brand equity. Practical implications – The study provides an integrated approach to brand building. It also offers an objective framework brand owners can use to evaluate marketing investments. It also provides a clear brand differentiation strategy for bank brands. Finally, it introduces cross-cultural research in brand equity which can be a useful competitive tool for indigenous banks and foreign banks seeking market expansion strategies. Originality/value – This research is one of the few studies that analyzed brand equity in retail banking. It advanced a brand equity framework that explores the mediating role of customer satisfaction and provides a guide to uplift perceptions and stimulate customer confidence in the banking sector.

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.

scholarly journals The effect of sensory brand experience and involvement on brand equity directly and indirectly through consumer brand engagement

2017 ◽  
Vol 26 (3) ◽  
pp. 282-293 ◽  
Author(s):  
Janne Hepola ◽  
Heikki Karjaluoto ◽  
Anni Hintikka
Keyword(s):  
Brand Equity ◽  
Structural Equation ◽  
Longitudinal Research ◽  
Influential Factor ◽  
Emotional Engagement ◽  
Equation Modeling ◽  
Brand Experience ◽  
Brand Relationships ◽  
Content Type ◽  
Brand Engagement

Purpose This study aims to examine the effect of sensory brand experience and involvement on brand equity directly and indirectly through cognitive, emotional and behavioral consumer brand engagement (CBE). Design/methodology/approach A survey was administered to the customers of a Finnish tableware brand using relevant Facebook channels. A total of 1,390 responses were analyzed using partial least squares structural equation modeling. Findings The empirical findings suggest that both involvement and sensory brand experience are directly related to the three facets of CBE. Further, involvement, sensory brand experience and CBE jointly explain more than 50 per cent of the variance in brand equity. In addition, the results reveal that emotional engagement was the most influential factor in determining consumers’ overall engagement level. Research limitations/implications The framework should be tested in other contexts, and the application of longitudinal research setting is encouraged. Practical implications The study highlights not only the importance of holistic CBE management but also the necessity to manage sensory aspects of consumer–brand interactions. In this way, managers can build sustainable consumer–brand relationships. Originality/value The nomological network of CBE is not well-known. This study integrates two central constructs (sensory brand experience and brand equity) with the concept of CBE and examines their effects on brand equity both directly and indirectly through cognitive, emotional and behavioral CBE.

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.

Creating consumer-based brand equity for customers by brand experience

2019 ◽  
Vol 11 (6) ◽  
pp. 1443-1464 ◽  
Author(s):  
Davood Feiz ◽  
Hadi Moradi
Keyword(s):  
Brand Equity ◽  
Structural Equation ◽  
Design Methodology ◽  
Equation Modeling ◽  
Brand Experience ◽  
Ideal Self ◽  
Content Type ◽  
West Azerbaijan ◽  
Staff Behavior ◽  
Brand Satisfaction

Purpose The purpose of this paper is to investigate the effect of brand experience on brand equity dimensions in the perspective of customers (including brand identification, physical quality, staff behavior quality, brand awareness, ideal self-congruence and life style-congruence) on brand satisfaction and loyalty in Iranian banking industry. Design/methodology/approach The author designed the conceptual model of the research based on the existing relationships between the research variables and the proposed hypotheses. By a questionnaire, the opinion of 288 customers and clients of selected branches of Melli and Tejarat banks were collected in two Provinces, including East and West Azerbaijan Provinces. The research hypotheses were tested using structural equation modeling. Findings The results of the paper showed that the brand experience directly affected all dimensions of brand equity. Also, the results indicated that except for lifestyle congruence, other dimensions of equity directly affected the customers' brand satisfaction. Originality/value This paper is significant, because it addresses the experience relationships and brand equity with the perspective of the customers of banks in an Islamic country, which affects the development of branding literature.

Linking ethical leadership to administrative innovation in Ethiopian banks: the mediating role of knowledge process capabilities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gedif Tessema Sinshaw ◽  
Atul Shiva ◽  
Manjit Singh
Keyword(s):  
Ethical Leadership ◽  
Structural Equation ◽  
Banking Sector ◽  
Organizational Capabilities ◽  
Equation Modeling ◽  
Mediation Model ◽  
Knowledge Process ◽  
Content Type ◽  
Mediating Role

PurposeThis paper aims to examine the mediating role of knowledge process capability (KPC) between ethical leadership (EL) and administrative innovation (AI) in the banking sector of Ethiopia.Design/methodology/approachThe study was conducted by a standardized questionnaire survey to collect the data from 266 employees of Commercial Bank of Ethiopia in 93 branches. The study employed structural equation modeling approach with Analyzing Moment of Structures 23.0 to test the hypothesized mediation model.FindingsThe results of this investigation disclose that EL has a significant and direct effect on AI and KPC. KPC also influences AI significantly.Originality/valueThe study revealed that KPC plays a partial mediating role in linking EL to AI, which is a new contribution to the existing literature of EL. This dimension can provide new dimensions to design organizational leadership which is based on sustainability paradigm. This can strengthen the organizational capabilities aiming to increasing innovative behaviors in order to have a deep-seated strategy.

scholarly journals Examining the ParticipACTION brand using the brand equity pyramid

2018 ◽  
Vol 8 (4) ◽  
pp. 378-396 ◽  
Author(s):  
Alexander Lithopoulos ◽  
Peter A. Dacin ◽  
Tanya R. Berry ◽  
Guy Faulkner ◽  
Norm O’Reilly ◽  
...  
Keyword(s):  
Factor Analysis ◽  
Confirmatory Factor Analysis ◽  
Exploratory Factor Analysis ◽  
Brand Equity ◽  
Structural Equation ◽  
Structural Equation Models ◽  
Equation Modeling ◽  
Content Type ◽  
Activity Promotion ◽  
Confirmatory Factor

Purpose The brand equity pyramid is a theory that explains how people develop loyalty and an attachment to a brand. The purpose of this study is to test whether the predictions made by the theory hold when applied to the brand of ParticipACTION, a Canadian non-profit organization that promotes active living. A secondary objective was to test whether this theory predicted intentions to be more physically active. Design/methodology/approach A research agency conducted a cross-sectional, online brand health survey on behalf of ParticipACTION. Exploratory factor analysis and confirmatory factor analysis established the factor structure. Structural equation modeling was used to test the hypothesized model. Findings A nationally representative sample of Canadian adults (N = 1,191) completed the survey. Exploratory factor analysis and confirmatory factor analysis supported a hypothesized five-factor brand equity framework (i.e. brand identity, brand meaning, brand responses, brand resonance and intentions). A series of structural equation models also provided support for the hypothesized relationships between the variables. Practical implications Though preliminary, the results provide a guide for understanding the branding process in the activity-promotion context. The constructs identified as being influential in this process can be targeted by activity-promotion organizations to improve brand strength. A strong organizational brand could augment activity-promotion interventions. A strong brand may also help the organization better compete against other brands promoting messages that are antithetical to their own. Originality/value This is the first study to test the brand equity pyramid using an activity-promotion brand. Results demonstrate that the brand equity pyramid may be useful in this context.

Effects of internal brand knowledge dissemination on the employee

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rafael Bravo ◽  
José Miguel Pina ◽  
Beatriz Tirado
Keyword(s):  
Structural Equation ◽  
Banking Sector ◽  
Brand Management ◽  
Current Knowledge ◽  
Knowledge Dissemination ◽  
Equation Modeling ◽  
Content Type ◽  
Brand Knowledge ◽  
Brand Authenticity ◽  
Employee Identification

PurposeThis study aims to examine the internal brand knowledge dissemination process in the banking sector and its effects on employees. Specifically, it focuses on the key roles of employee identification with both the organization and with the customer as antecedents of behaviors supportive of the brand, i.e. employee citizenship behaviors and recommendation behaviors.Design/methodology/approachAn empirical study was carried out in a major Spanish bank. Data gathered from a survey of 315 employees were analyzed through structural equation modeling.FindingsThe results showed that employees' perceptions of brand value congruence are key in explaining their identification with both the organization and with the customer. However, the employees' perceptions of the brand's authenticity explained only their recommendations of the bank as a good place to work.Originality/valueThese findings contribute to the advance in the current knowledge of the role of variables such as brand authenticity and employee–customer identification in internal brand management. From a managerial viewpoint, the results provide insights into the importance of employees' perceptions and attitudes when it comes to brand knowledge dissemination.

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.

The effect of novelty on travel intention: the mediating effect of brand equity and travel motivation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yucheng Zhang ◽  
Jing Li ◽  
Chih-Hsing Liu ◽  
Yimo Shen ◽  
Guiquan Li
Keyword(s):  
Intrinsic Motivation ◽  
Brand Equity ◽  
Structural Equation ◽  
Mediating Effect ◽  
Equation Modeling ◽  
Future Research ◽  
Content Type ◽  
The Relationship ◽  
Night Markets ◽  
Research Studies

PurposeResearch on the relationship between novelty and travel intention is lacking. This study attempts to fill this gap by developing a theoretical model to explain how novelty influences travel intention through two mediating paths: brand equity and tourist motivation.Design/methodology/approachIn this study, data were collected from 466 foreign visitors to Taiwanese night markets. To test the model, the authors applied structural equation modeling (SEM) to identify the critical attributes that predicted foreign tourists' travel intentions.FindingsThe SEM analysis indicated that novelty in tourism management was related to brand equity and intrinsic motivation, which increased foreign tourists' travel intentions and offered advantages for highly competitive, high-density night markets in Taiwan. In addition, brand equity was an important mediator that connected novelty and tourists' travel intentions. Finally, novelty indirectly affected travel intention and intrinsic motivation through brand equity.Research limitations/implicationsThere may exist potential moderators in the relationships among the brand equity and travel intention categories. Future research studies could explore whether any moderators influence the relationship mechanisms examined in this study.Originality/valueThis research expands on previous research studies that have focused on the value of travel intention. Furthermore, the study uses brand equity theory (BET) and the theory of planned behavior (TPB) to examine the mediating effect of intrinsic motivation on the relationship between novelty and travel intention.

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