The effects of customer equity and religious motivation on customer retention and switching intention

2020 ◽  
Vol 11 (6) ◽  
pp. 1873-1891
Author(s):  
Rasha H.A. Mostafa ◽  
Mohamed Mahmoud Ibrahim
Keyword(s):  
Structural Equation ◽  
Banking Sector ◽  
Customer Retention ◽  
Customer Equity ◽  
Switching Behavior ◽  
Equation Modeling ◽  
Religious Motivation ◽  
Content Type ◽  
Conventional Banks ◽  
Positive Effect

Purpose This paper aims to investigate the effects of intrinsic and extrinsic motivations represented in religious motivation and customer equity (CE) drivers, respectively, and switching costs (SCs), on customer’s retention to conventional banks and their switching intention (SI) to Islamic ones in the context of the Egyptian banking sector. Design/methodology/approach Based on the literature, a theoretical model is proposed and examined using structural equation modeling (AMOS) 24. Data were obtained using an intercept sample of 273 conventional bank customers in two major cities in Egypt, namely, Cairo and Giza. Findings The results supported the positive effect of CE and SCs on customer retention (CR) to conventional banks. Value equity has direct positive effect on CR. In addition, SC significantly mediated the relationship between relationship equity (RE) and service encounter employee’s equity (SEEE) and CR. Finally, religious motivations positively and significantly influence customers SI to Islamic banks. Practical implications CE, including all its drivers, namely, value, brand, relationship and SEEE, are the best force of CR in the Egyptian banking sector. The mediating role of SC in the relation between RE and SEEE and CR is perceived as a barrier to switch, instead of reflecting real desire from customers to stay tuned to their conventional banks. In addition, religious motivation should be considered while planning banking services because of its significant direct effect on customers SI from conventional banks to Islamic ones. Finally, both utilitarian extrinsic motivation and hedonic intrinsic ones are influencing customer’s retention and SI, respectively. Originality/value This paper develops and adds a fourth driver to previously examined and validated CE drivers, namely, SEEE. Further, it provides empirical analysis to the effect of religious motivation and CE drivers on SCs, CR and SI in a developing and Islamic dominating context, namely, Egypt. Moreover, it introduces a framework that could be examined and validated in other Islamic contexts to further comprehend bank customers' switching behavior. Yet, the current research focused on the Egyptian banking sector only, where the individual customers represent the sampling unit.

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.

Money cannot buy happiness: improving governance in the banking sector through spirituality

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rafael Robina-Ramírez ◽  
José Amelio Medina-Merodio ◽  
Rosa Estriégana ◽  
Hector V. Jimenez-Naranjo
Keyword(s):  
Structural Equation ◽  
Banking Sector ◽  
Equation Modeling ◽  
Traditional Values ◽  
Spiritual Values ◽  
Content Type ◽  
Daily Work ◽  
Training Strategy ◽  
Bank Employees ◽  
Positive Effect

Purpose A model is proposed to develop happiness in the banking sector based on an improvement in the spirituality of employees. Design/methodology/approach Following the Schwartz’s model for behavioural transformation, a new path has been proposed based on the development of the transcendent vision of work. The data obtained were analysed using the partial least squares-structural equation modeling (SEM) method. Findings Contrary to the widespread idea that happiness is orientated towards the enjoyment of goods, bank employees prefer to develop spiritual values and resources that allow them to respond adequately to massive layoffs and pressures at work. Research limitations/implications The bank employees’ schedules made it difficult to organise group sessions. Multiple sessions prevented us all from interacting. Practical implications It is established a training strategy for the pursuit of happiness, to propose an engine for actions orientated towards happiness and to introduce transcendence and spirituality as requirements for finding happiness during daily work. Social implications There is a need to return to traditional values and principles in daily work. This will have a positive effect on communities and society. Originality/value A new concept has been coined: spiritual resources. This new variable can help to combat adversity by exploring the meaning of transcendence at work.

Research on the influencing factors of the switching behavior of Chinese social media users: QQ transfer to WeChat

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Cong Yin ◽  
Yujing Zhou ◽  
Peiyu He ◽  
Meng Tu
Keyword(s):  
Social Media ◽  
Structural Equation ◽  
Negative Relationship ◽  
Switching Behavior ◽  
Equation Modeling ◽  
Online Questionnaire ◽  
Content Type ◽  
Important Relationship ◽  
Transfer Behavior ◽  
Behavior Function

PurposeThis research takes the transfer behavior of users from Tencent QQ to WeChat as an example to discuss the wider transfer behavior of social media users on the Internet.Design/methodology/approachThis paper collects data through a combination of offline interviews and online questionnaire surveys, and utilizes data analysis tools to construct structural equation modeling (SEM). Using Statistical Product and Service Solutions (SPSS) Statistics 22.0 and Analysis of Moment Structures (AMOS) 22.0 software with SEM, this study was carried out to provide reasonable statistical support for relevant proposed hypotheses based on 368 effective samples acquired through the questionnaire.FindingsThe findings of this study show that subjective norm, transfer experience, social communication, and knowledge acquisition all have significant associations with transfer intention and switching behavior. To be specific, transfer intention exerts a positive association on switching behavior; function setting, privacy protection and personal innovation have a favorable association with transfer intention; transfer cost has a significantly negative relationship with transfer intention and switching behavior; function setting has no important relationship on switching behavior.Originality/valueThe research results provide a reference for improving the viscosity and loyalty of social media users in the new era and resolving the problem of user churn.

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.

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).

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.

Mobile-banking adoption: empirical evidence from the banking sector in Pakistan

2018 ◽  
Vol 36 (7) ◽  
pp. 1386-1413 ◽  
Author(s):  
Maya F. Farah ◽  
Muhammad Junaid Shahid Hasni ◽  
Abbas Khan Abbas
Keyword(s):  
Perceived Risk ◽  
Structural Equation ◽  
Banking Sector ◽  
Perceived Value ◽  
Equation Modeling ◽  
Mobile Banking ◽  
Content Type ◽  
Actual Use ◽  
Use Behavior ◽  
The Impact

Purpose The purpose of this paper is to study the important factors which help explain consumer intention and use behavior in mobile banking (m-banking) adoption. All constructs of the unified theory of acceptance and use of technology 2 are studied. Non-monetary value is studied through perceived value. Trust and perceived risk are also included to predict intention. Design/methodology/approach A questionnaire was utilized to evaluate customer responses on a five-point Likert scale. A convenience sampling technique was used to collect data from a sample of 490 respondents in Pakistan. The data were analyzed using AMOS and SPSS for Cronbach’s α, CR, CMV, AVE, Harmon’s single factor test, correlation and structural equation modeling. Findings The results of the study show that most of the predictors of intention, including perceived value, performance expectancy, habit, social influence, effort expectancy, hedonic motivation (except for facilitating condition), perceived risk and trust, are significant. All predictors of usage behavior are significant. Research limitations/implications A cross-sectional study was conducted due to time constraints. Practical implications Bank managers must focus on improving customers’ intentions to use m-banking as well as on providing facilitating conditions to increase its actual use. To boost mobile banking, banks’ management must consider the customers’ habits while designing their m-banking products. Originality/value The findings of this paper are not only interesting in terms of boosting m-banking diffusion rate, but also in terms of financial inclusion of the vast majority of mobile users. Further the impact of intention, facilitating condition and habit were checked on actual use behavior since people tend not always to act upon their intentions.

Understanding extended information seeking

2020 ◽  
Vol 72 (5) ◽  
pp. 705-724
Author(s):  
Xianjin Zha ◽  
Chengsong Huang ◽  
Yalan Yan ◽  
Guanxiang Yan ◽  
Xue Wang ◽  
...  
Keyword(s):  
Digital Libraries ◽  
Information Seeking ◽  
Structural Equation ◽  
Psychological Empowerment ◽  
Structuration Theory ◽  
Equation Modeling ◽  
Specific Information ◽  
Research Model ◽  
Content Type ◽  
Positive Effect

PurposeThis study aims to explore the mechanisms of extended information seeking, which is the combination of extended information technologies (IT) use behavior and information-seeking behavior. The purpose is to identify the factors that shape extended information seeking from the perspectives of psychological empowerment and attachment.Design/methodology/approachA research model was developed based on prior theory and literature. Survey data were collected, and the partial least squares (PLS) structural equation modeling was used to verify the research model.FindingsPsychological empowerment is a well-constructed second-order construct, having a larger positive effect on extended information seeking. Digital libraries attachment has a positive effect on extended information seeking.Practical implicationsAccessing digital libraries does not mean using digital libraries effectively. Managers of digital libraries should design various specific information activities to help users enhance psychological empowerment. They should provide more available and responsive services for users to enhance digital libraries attachment.Originality/valueDrawing on the adaptive structuration theory, this study examines extended information seeking by combining extended use of digital libraries and information seeking, presenting a new lens for digital library and information seeking research.

Application of the theory of planned behavior to customer switching intentions in the context of bank consolidations

2017 ◽  
Vol 35 (1) ◽  
pp. 147-172 ◽  
Author(s):  
Maya F. Farah
Keyword(s):  
Theory Of Planned Behavior ◽  
Planned Behavior ◽  
Structural Equation ◽  
Real Life ◽  
Switching Behavior ◽  
Control Beliefs ◽  
Equation Modeling ◽  
Perceived Behavioral Control ◽  
Content Type ◽  
Customer Switching

Purpose The purpose of this paper is to examine the factors that affect customers’ switching intentions among banks in the context of mergers and acquisitions, using particularly the case of the merger between Lloyds TSB and Halifax Bank of Scotland, which took place in 2009. Design/methodology/approach On the basis of the theory of planned behavior, a quantitative survey was developed and administered to 515 account holders from both banks in branches located in Spain. Structural equation modeling was then utilized to evaluate the significance of direct and indirect relationships between the various factors under study. Findings Empirical findings indicate a significant direct relationship between switching intentions and each of: behavioral beliefs, normative beliefs, attitudes, and subjective norms. Results also reveal an inverse significant relationship between switching intentions and both control beliefs and perceived behavioral control. Research limitations/implications The absence of a longitudinal study measuring the actual impact of the merger on customer switching behavior is the main limitation of this study. Moreover, despite being insightful, the results of this study should be generalized with caution since the sample was based on a list purposely chosen by the banks’ management. Originality/value This paper discusses customer switching behavior in the context of a real-life case of banks’ consolidation.

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