Should relationship quality be measured as a disaggregated or a composite construct?

2016 ◽  
Vol 39 (1) ◽  
pp. 115-131 ◽  
Author(s):  
Ernest Emeka Izogo
Keyword(s):  
Relationship Quality ◽  
Customer Loyalty ◽  
Financial Services ◽  
Structural Equation ◽  
Banking Sector ◽  
Future Research ◽  
Bottom Line ◽  
Data Set ◽  
Content Type ◽  
Competing Models

Purpose – The purpose of this paper is to report the results of an empirical study that tested two competing models of relationship quality for superiority and further examined the effect of relationship quality antecedents as well as relationship quality constructs on customer loyalty. Design/methodology/approach – Quantitative cross-sectional data generated from 332 informants who are experienced users of banking services formed the final database. The construct validity and reliability of the data set was confirmed. The two competing models were tested with partial least squares structural equation modelling technique. Findings – Although the two competing models support all the hypothesised relationships as expected, the disaggregated model of relationship quality was found to be a better predictor of customer loyalty than the composite model of the construct. The two models also show that relationship quality does transmit the effect of customer orientation, expertise and information sharing to customer loyalty. But each of these determinants contributed differentially to relationship quality in both models just as trust and satisfaction contributed differentially to customer loyalty in the disaggregated model. Research limitations/implications – This paper questions the predictive ability of all previous models that tested relationship quality as a composite construct. The concern is that outputs from those studies may not have reflected the accurate explanation of the construct on companies’ bottom line. Future research integrating the construct into behavioural models should, therefore, examine the construct from a disaggregated viewpoint. Practical implications – Retail managers especially those within the banking sector are better placed to enhance customer loyalty when relationship quality implementation is initiated from the lens of both trust and satisfaction as separate and interdependent constructs, rather than a composite measure. Such approach widens the latitude to identify areas where attention to improvement is needed most. Originality/value – The uniqueness of this paper is the measurement of relationship quality both as a disaggregated and composite construct in one study. As far as could be established, in exception of Rafiq et al. (2013) whose model was rather too simplistic, no study of this sort is found within the relationship marketing literature in general and the financial services sector in particular. Based on the two competing models tested, the disaggregated model of relationship quality ahead of the composite/global measure emerged as a superior approach to testing the construct.

Examining determinants of cross buying behaviour in retail banking

2015 ◽  
Vol 32 (8) ◽  
pp. 863-880 ◽  
Author(s):  
Brian Tung ◽  
Jamie Carlson
Keyword(s):  
Hong Kong ◽  
Relationship Quality ◽  
Customer Loyalty ◽  
Financial Services ◽  
Structural Equation ◽  
Retail Banking ◽  
Content Type ◽  
Quality Dimensions ◽  
Buying Behaviour ◽  
Retail Banks

Purpose – The purpose of this paper is to examine the drivers of the customers’ cross-buying intentions for retail banking services in Hong Kong. Design/methodology/approach – The research model was developed based on literature and tested empirically among 269 customers of retail banks in Hong Kong. Structural equation modelling was used to test the system of relationships. Findings – The results indicate that the customers’ cross-buying intentions are primarily associated with image conflicts about the provider’s abilities to deliver high quality financial services from different activities and high levels of customer loyalty. Research limitations/implications – The research is limited to a single country focus of Hong Kong retail banking. The generalizibility of these findings is therefore limited to this context. Practical implications – The findings of the study have important implications for academicians in understanding what drives cross-buying behaviour as well as retail bank practitioners to help design more effective cross-buying strategies. Originality/value – The authors show that perceived image conflict and customer loyalty directly influences cross-buying intentions and that cross-buying intentions is not affected by dimensions of relationship quality directly. However, relationship quality dimensions was found to influence customer loyalty and play an important indirect role in unlocking cross-buying intentions.

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.

Impact of business model innovations on SME’s innovativeness and performance

2019 ◽  
Vol 14 (4) ◽  
pp. 521-539 ◽  
Author(s):  
Rimantas Gatautis† ◽  
Egle Vaiciukynaite ◽  
Asta Tarute
Keyword(s):  
Business Model ◽  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Future Research ◽  
Data Set ◽  
Content Type ◽  
Innovation Activities ◽  
Organizational Inertia ◽  
Multiple Characteristics

Purpose Business model innovations (BMIs), their drivers and outcomes are attracting increasing attention in academic literature. However, previous studies have mainly focused on large companies, while knowledge of BMI in small-to-medium-sized enterprises (SMEs) is limited. Therefore, the purpose of this paper is to add new insights into how related BMI drivers, practices and outcomes are in relation to SMEs. Design/methodology/approach An extensive review of the existing literature was performed. Consequently, the relationships between BMI drivers, BMI practices and outcomes of BMI were developed as a conceptual framework. An empirical study was carried out. A structural equation modeling (SEM) procedure was used to empirically test the model using a quantitative data set of Lithuanian SMEs (n=73). Findings The study provides insights into the relations between BMI drivers, BMI practices and outcomes of BMI in SMEs. The findings of SEM, four drivers (innovation activities, strategic orientation, market and technology turbulence, respectively) are indicated to contribute to BMI of SMEs. In addition, the results proved that the implementation of BMI practices leads to strategic and architectural changes in firms and has a positive impact on SMEs performance and innovativeness. Research limitations/implications Empirical research is focused on a limited number of internal and external BMI drivers, which have an influence on BMI in SMEs from one geographical region. Consequently, there are many external and internal BMI drivers which also may have an influence on BMI in SMEs, such as industry life cycle, organizational inertia and leadership. Meanwhile, SMEs possess multiple characteristics, i.e. a phase of maturity, gender of CEO, firm size and industry; therefore, the aforesaid aspects are considered to be significant limitations. In addition, the importance of SMEs characteristics as mediators for the effects on a firm’s performance and innovativeness should be considered in future research avenues. Practical implications Findings of this research can be used by SME managers to better understand how firms might actively engage in BMI practices, what drivers lead to BMI and, in turn, affect their firm’s performance and innovativeness. SME managers should be encouraged to pay attention to strategic and architectural changes of BM that can contribute to enterprise performance and innovativeness. Originality/value This paper adds to the stream of BMI research by empirically exploring drivers and outcomes of BMI in SMEs. In addition, this paper fulfills research gaps proposed by Bouwman et al. (2018), Foss and Saebi (2017), Heikkilä, Bouwman and Heikkilä (2018) and Lambert and Davidson (2013), and enhances the current overall understanding of BMIs.

scholarly journals Increasing customer loyalty through customer engagement in the retail banking industry

2019 ◽  
Vol 23 (3) ◽  
pp. 461-484 ◽  
Author(s):  
Diego Monferrer ◽  
Miguel Angel Moliner ◽  
Marta Estrada
Keyword(s):  
Market Orientation ◽  
Customer Loyalty ◽  
Financial Services ◽  
Structural Equation ◽  
Strong Relationship ◽  
Retail Banking ◽  
Customer Engagement ◽  
Content Type ◽  
The Relationship ◽  
Corporate Level

Purpose This study aims to determine the main antecedents of customer engagement (market orientation, satisfaction, emotions and self-brand connection) and the relationship between customer engagement and customer loyalty in the retail-banking context. Design/methodology/approach A theoretical model of effects is tested using dyadic methodology, based on 225 dyads (bank branch manager–average of five branch customers). The authors use structural equation modelling (EQS 6.1) to test the relationships. Findings The results reveal a strong relationship between customer engagement and customer loyalty. Satisfaction is the main antecedent of customer engagement. Self-brand connection and emotions during the service also have a significant influence. Finally, branch market orientation has a positive influence on satisfaction and emotions. Research limitations/implications The first concerns the transversal data used. Geographical context is the second limitation. Third, the study sample only included customers with experience of the financial services of a specific bank (online customers are not included). Finally, the dyads are based on the opinion of the branch manager, on one hand, and an average of five customers per branch, on the other. Practical implications The combination of the branding strategy at the corporate level and the relationship marketing strategy at branch office level creates a situation in which customer engagement and customer loyalty can thrive. The communication campaigns designed to promote the brand image and associate brand values with the personality of the banks’ current and potential customers help to create an emotional bond that represents a switching cost for the customer. The moments of truth in branch offices are crucial aspects in the retail bank strategy. Originality/value First, from the conceptual perspective, it establishes a direct relationship between customer engagement and customer loyalty. Second, it empirically tested Pansari and Kumar’s (2017) customer engagement framework, which establishes customer satisfaction and customer emotions as the antecedents of customer engagement. Third, the study took an innovative step in establishing two levels of customer emotions in the retail bank context: emotions generated by corporate branding and emotions that arise during the experience of purchase and consuming. Fourth, the study shows that the market orientation adopted not at the macro corporate level but at the individual branch level is crucial to the generation of positive relational outcomes in the service the customer receives. The fifth contribution is related to the fact that the research streams associated with market orientation and relationship quality have traditionally been studied in isolation.

scholarly journals Measuring Relationship Quality in an International Study

2016 ◽  
Vol 28 (8) ◽  
pp. 920-930 ◽  
Author(s):  
Jill M. Chonody ◽  
Jacqui Gabb ◽  
Mike Killian ◽  
Priscilla Dunk-West
Keyword(s):  
Factor Analysis ◽  
Relationship Quality ◽  
Structural Equation ◽  
Community Sample ◽  
International Study ◽  
Equation Modeling ◽  
Future Research ◽  
Cross Sectional ◽  
Data Set ◽  
Convergent Construct Validity

Objective: This study reports on the operationalization and testing of the newly developed Relationship Quality (RQ) scale, designed to assess an individual’s perception of his or her RQ in their current partnership. Methods: Data were generated through extended sampling from an original U.K.-based research project, Enduring Love? Couple relationships in the 21st century. This mixed methods study was designed to investigate how couples experience, understand, and sustain their long-term relationships. This article utilizes the cross-sectional, community sample ( N = 8,132) from this combined data set, drawn primarily from the United Kingdom, United States, and Australia. A two-part approach to scale development was employed. An initial 15-item pool was subjected to exploratory factor analysis leading into confirmatory factor analysis using structural equation modeling. Results: The final 9-item scale evidenced convergent construct validity and known-groups validity along with strong reliability. Conclusion: Implications for future research and professional practice are discussed.

The role of salespeople in developing life insurance customer loyalty

2016 ◽  
Vol 44 (1) ◽  
pp. 22-37 ◽  
Author(s):  
Tsu-Wei Yu ◽  
Lu-Ming Tseng
Keyword(s):  
Relationship Quality ◽  
Customer Loyalty ◽  
Life Insurance ◽  
Structural Equation ◽  
Insurance Industry ◽  
Customer Relationship ◽  
Content Type ◽  
Life Insurers ◽  
Life Insurance Industry ◽  
Antecedents And Consequences

Purpose – The purpose of this paper is to closely investigate the antecedents affecting relationship quality and its consequences between life insurers and their customers. Design/methodology/approach – Data were collected from the customers of life insurers’ customer relationship management centres and were analysed using in-depth interviews and questionnaires. A structural equation modelling approach is employed to test the hypotheses. Findings – The findings are generally consistent with the literature. This study supports all hypotheses. Finally, the findings of this study confirm that relationship quality mediates the effects of salesperson characteristics and relational selling behaviour on customer loyalty. Originality/value – To the authors knowledge, there is little published research that examines antecedents and consequences of relationship quality in life insurance industry in Taiwan. Therefore, in addition to developing high-quality services, life insurers need to establish and maintain long-term relationships with customers in order to create corporate innovation value.

Social eWOM: does it affect the brand attitude and purchase intention of brands?

2017 ◽  
Vol 40 (3) ◽  
pp. 310-330 ◽  
Author(s):  
Chetna Kudeshia ◽  
Amresh Kumar
Keyword(s):  
Purchase Intention ◽  
Structural Equation ◽  
Brand Attitude ◽  
Social Networking Site ◽  
Consumer Electronics ◽  
Theory And Practice ◽  
Equation Modeling ◽  
Future Research ◽  
Data Set ◽  
Content Type

Purpose The purpose of this paper is to examine how user-generated positive social electronic word-of-mouth (eWOM) via Facebook affects brand attitude and, consequently, influences purchase intention of smartphones. The spending patterns of consumers, particularly decision-makers, have been affected to a substantial degree by the strong presence of brands on the web. eWOM, one among the shape of net product reviews, exercises extensive influence not only on the consumers’ attitude towards the brand but also impacts their buying intentions. Design/methodology/approach A survey-based empirical study was conducted to examine the influence of social eWOM on brand attitude and purchase intention of consumers. Structural equation modeling (SEM) was applied using data collected from 311 respondents comprising users of Facebook. Findings The research established that user-generated positive eWOM on social networking site, Facebook significantly influences brand attitude and purchase intention of consumer electronics. Research limitations/implications The data set used for the study limits generalizing of results, as the data are not representative across industries or across all social media applications. The study provides a useful and interesting insight into the theory and practice of eWOM. It shows how social eWOM, an emerging communication tool, not only helps twenty-first century marketers in reaching customers, but how it also plays a vital role in affecting brand attitude and purchase intention of products. Originality/value This paper provides useful and valuable insights into the relationship between social eWOM, brand attitude and purchase intention of consumer electronics, an area that largely remains unexplored. The study can also be replicated for other products or services for future research.

CSR, relationship quality, loyalty and psychological connection in sports

2016 ◽  
Vol 34 (6) ◽  
pp. 883-898 ◽  
Author(s):  
Munyaradzi W. Nyadzayo ◽  
Civilai Leckie ◽  
Heath McDonald
Keyword(s):  
Relationship Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Direct Impact ◽  
Content Type ◽  
Season Ticket ◽  
Parametric Bootstrapping ◽  
Sports Club ◽  
Psychological Continuum ◽  
Corporate Social

Purpose The purpose of this paper is to investigate the role played by corporate social responsibility (CSR) in building relationship quality (RQ) in the context of sports organisations. In turn, the link between RQ and customer loyalty is examined. Acknowledging that customers develop a psychological connection with the sports organisation over time, the study also examines whether the link between CSR and RQ is moderated by the psychological continuum model (PCM) stages (awareness, attraction, attachment and allegiance). Design/methodology/approach The survey data were drawn from almost 6,000 season ticket holders of a professional sports club. Structural equation modelling and the non-parametric bootstrapping regression technique were used to test the hypotheses. Findings The results support the direct impact of CSR activities on RQ. RQ, in turn, drives customer loyalty. Importantly, RQ is found to fully mediate the relationship between CSR and customer loyalty. However, as customers move through the psychological connection stages, the effect of CSR on customer loyalty via RQ tends to diminish. Practical implications This study provides evidence of a direct impact of CSR activities on RQ, and also attests the role of psychological connection in sports organisations. Originality/value The incorporation of a multidimensional RQ construct and the PCM stages allows a deeper understanding of how CSR might be employed to achieve organisational goals.

Image, performance, attitudes, trust, and loyalty in financial services

2018 ◽  
Vol 36 (4) ◽  
pp. 744-763 ◽  
Author(s):  
Mehdi Akhgari ◽  
Edward R. Bruning ◽  
Jesse Finlay ◽  
Nealia S. Bruning
Keyword(s):  
Executive Compensation ◽  
Relationship Quality ◽  
Financial Services ◽  
Structural Equation ◽  
Positive Association ◽  
Equation Modeling ◽  
Negative Effects ◽  
Content Type ◽  
Quasi Experimental ◽  
The Relationship

PurposeThe purpose of this paper is twofold: first, to determine the extent to which hedonic and utilitarian attitudes and loyalty are influenced by perceived financial performance (PFP) and executive compensation plan image (ECPI) in financial services; second, the authors evaluate relationships among hedonic and utilitarian attitudes, trust, and loyalty.Design/methodology/approachUsing a quasi-experimental design in Study 1 the authors test the relationship between antecedents (PFP and ECPI) and relational elements (attitudes, trust, and loyalty) to address the first objective. To accomplish the second objective, the authors employ structural equation modeling in Study 2 to test the relationship among hedonic and utilitarian attitudes, trust, and loyalty.FindingsStudy 1 confirms that PFP and ECPI positively impact both hedonic and utilitarian attitudes but do not directly affect loyalty. Study 2 demonstrates a positive association between utilitarian attitudes and trust, although the hedonic attitudes-trust relationship is negative. Hedonic attitudes are also significantly related to utilitarian attitudes. Finally, trust mediates the relationship between attitudes and loyalty.Practical implicationsBuilding customer trust is an important correlate of loyalty, and emphasizing an attribute-based aspect of perceived financial service generates greater trust compared to enhancing a non-attribute aspect (i.e. minimizing negative effects on image of executive compensation plans).Originality/valueThe authors link attitude research to service/relationship quality research and discover that attitudes are indirectly related to loyalty through increases in trust. The findings suggest that perceived image and performance of financial services are important to relationship quality when applied to financial services.

Hospital service quality and patient loyalty: the mediation effect of empathy

2018 ◽  
Vol 33 (8) ◽  
pp. 1176-1186 ◽  
Author(s):  
Yucheng Zhang ◽  
Long Zhang ◽  
Xin Zhang ◽  
Miles M. Yang ◽  
Shanshan Zhang ◽  
...  
Keyword(s):  
Service Quality ◽  
Survey Data ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Social Identification ◽  
Mediation Effect ◽  
Future Research ◽  
Hospital Service ◽  
Content Type ◽  
Patient Loyalty

PurposeDrawing on social identification theory, this research aims to explore an important mechanism – patients’ perceived empathy from a hospital, which is defined as caring, individualized attention provided by the hospital – that explains how service quality influences patients’ loyalty to the hospital.Design/methodology/approachThis study adopts a structural equation modelling framework to estimate the mediation relationship between service quality and patient loyalty using two studies based on hospital employees and patients.FindingsIn Study 1, hospital staff survey data showed that service quality enhanced patients’ perceived empathy from the hospital. In Study 2, the authors confirmed and extended the findings of Study 1 by using patient survey data that suggested that patients’ empathy mediated the relationship between service quality and patients’ loyalty to the hospital.Originality/valueThe results of the two studies suggested that service quality increased patients’ empathy, which in turn improved patients’ loyalty to a hospital. The results extend the customer loyalty literature by exploring the critical antecedents and mechanisms of customer loyalty in the healthcare context. The studies interpret healthcare phenomena from the service aspect of fulfilling patients’ unique needs and providing a good hospital service experience. Moreover, the authors offer an insightful approach to explaining the service quality–patient loyalty linkage in the healthcare industry. Important theoretical and managerial contributions and suggestions for future research are discussed.

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