Showing papers in "International Journal of Bank Marketing in 2020"
TL;DR: In this paper, the authors investigate how banking websites can activate customer engagement (CE) to enhance customer trust and retention, using an online survey, data were collected from 598 customers of various (public and private) banks in India Structural equation modeling was used to analyze the data,Results reveal that the key website attributes viz website interactivity, website aesthetics, customization, ease of use and telepresence positively affect CE.
Abstract: This paper aims to investigate how banking websites can activate customer engagement (CE) to consequently enhance customer trust and retention,Using an online survey, data were collected from 598 customers of various (public and private) banks in India Structural equation modeling was used to analyze the data,Results reveal that the key website attributes viz website interactivity, website aesthetics, customization, ease of use and telepresence positively affect CE The results also delineate positive associations between CE, customer trust and customer retention,This paper unravels that by strategically focusing on the relational dynamics of CE, banks can build trust and retain their most valuable stakeholders – the customers, thereby addressing the crucial strategic concerns of banking firms,This research is the first to explore the effects of key website attributes on CE in the banking context The undertaking of this study in an emerging economy adds further insight into CE literature by generalizing the applicability of CE studies across geographic contexts
96 citations
TL;DR: In this article, the authors investigate the main determinants of mobile payment use intention and propose a model integrating mindfulness as a major factor, which complements traditional variables to show how users address the adoption process.
Abstract: With the popularity of mobile devices and new technologies, such as NFC, mobile payment, which is taking the place of credit cards and cash as the chief payment method, is attracting more and more attention. Thus, this paper aims to investigate the main determinants of mobile payment use intention and proposes a model of mobile payment adoption, integrating mindfulness as a major factor.,Data for the study were collected through an online survey of a representative sample of 414 users in the United States and 380 in Spain. Structural equation modelling (SEM) was used to verify the validity of the variables and the relationships among them.,The results showed that mindfulness, perceived ease of use, perceived usefulness, subjective norms and attitude have significant influence on mobile payment use intention.,The present study is based on samples from only the United States and Spain, which limits generalization of the results. The notion of mindfulness is new in mobile payment adoption research, so future studies should analyze in more detail and in depth its effect on these adoption processes.,This is the first study to incorporate mindfulness into a mobile payment adoption process. Incorporating mindfulness complements traditional variables to show how users address the adoption process (e.g. novelty seeking, engagement, anxiety, attention paid).
63 citations
TL;DR: In this article, the authors investigated the potential effect of mobile banking service quality dimensions (ease of use, usefulness, security/privacy and enjoyment) on customers' value co-creation intention (CVCCI) in the banking sector.
Abstract: This paper attempts to investigate the potential effect of mobile banking (m-banking) service quality dimensions (ease of use, usefulness, security/privacy and enjoyment) on customers’ value co-creation intention (CVCCI) in the banking sector.,A questionnaire was administered with a sample of 301 respondents from Egypt. Mediation and moderation analyses were performed to explore the role of m-banking service quality, attitude toward using m-banking (ATT-m-banking) and bank trust in shaping CVCCI.,The empirical evidence confirms the potential role of m-banking service quality dimensions, the ATT-m-banking, and customer trust in developing CVCCI. In addition, the mediation effect of ATT-m-banking in the m-banking service quality dimensions and CVCCI link was demonstrated. Interestingly, trust was not found to have a moderating effect between the ATT-m-banking and CVCCI.,Outcomes of the study will benefit bank managers to allocate resources when developing an m-banking platform, which helps in effectively promoting value co-creation in the banking sector.,This paper is a pioneering study to move the m-banking literature forward beyond the extensively studied m-banking adoption by exploring a longer-term outcome of customer engagement with m-banking, which is CVCCI.
42 citations
TL;DR: In this paper, the authors proposed a model that relates the constructs of integrated interaction quality, perceived fluency, positive affect, and attitudinal loyalty in the banking sector and tested the mediating effect of positive affect in these relationships.
Abstract: Supported by the omnichannel strategy, the objective of this study is to identify the influence of integrated interaction quality and perceived fluency of service channels on attitudinal loyalty in the banking sector and to test the mediating effect of positive affect in these relationships.,This paper proposes a model that relates the constructs of integrated interaction quality, perceived fluency, positive affect, and attitudinal loyalty. A survey of 337 Brazilian bank clients was conducted and structural equation modeling was used for data analysis.,The results indicate that the construct of integrated interaction quality exerts positive influence on the loyalty of bank clients. The direct effect of the construct perceived fluency on loyalty is not significant. The results also demonstrate that positive affect exerts a mediating effect on the proposed relationships between the constructs.,This research assists banks in identifying relevant points regarding their service channels, so that they can determine how to generate positive experiences and customer loyalty through an omnichannel strategy. One can observe the behavior of banking consumers and develop business strategies based on the service channels, which aim to create a more profitable and loyal customer portfolio.,This study expands the literature regarding the omnichannel strategy by extending focus to include bank marketing, which is infrequently included in the body of such literature. This study also expands bank marketing research by including constructs that deal with consumer experience and loyalty.
40 citations
TL;DR: In this paper, a systematic review of mobile banking services is presented, which provides a state-of-the-art review of this particular growing type of services and assesses the most significant determinants of and barriers to consumers' adoption of mobile banks.
Abstract: This study is a systematic review of mobile banking services. Its main objective is to provide a state-of-the-art review of this particular growing type of services. It inventories and assesses the most significant determinants of and barriers to consumers' adoption of mobile banking. Moreover, it identifies the most common consequences of this adoption.,By using three major academic databases (ABI/INFORM global, Web of Science and Business Source Premier), this paper selected 76 manuscripts and produced a systematic review that exposes the main theories, conceptual frameworks and models used to explain consumers' adoption of mobile banking.,The results show that the TAM (technology of acceptance model), followed by the UTAUT (unified theory of acceptance and usage of technology), are still the main conceptual frameworks and models adopted and adapted by scholars to explain consumers' use or intention of using mobile banking. Using the vote counting method, a myriad of antecedents and consequences that are frequently used in the literature of mobile banking are reported. These were categorized into five main perspectives: (1) m-banking attributes-based perspective, (2) customer-based perspective, (3) social influence-based perspective, (4) trust-based perspective and (5) barriers-based perspective.,An integrated model regrouping and relating the five perspectives is proposed, leading to intriguing implications for both academics and practitioners.
39 citations
TL;DR: In this article, the authors examined the antecedents of responsible financial management behavior among young adults in India and explored the role of financial risk tolerance as a moderating variable, using a two-step approach via standard partial least squares structural modeling (PLS-SEM) and OLS regression.
Abstract: The study examines the antecedents of responsible financial management behavior among young adults in India and explores the role of financial risk tolerance as a moderating variable.,The sample includes young adults in the age group of 18–35. The analysis uses a two-step approach via standard partial least squares structural modeling (PLS-SEM) and ordinary least square (OLS) regression.,Structural modeling results show that financial attitude fully mediates the relationship between financial knowledge and responsible financial management behavior, and locus of control influences responsible financial management behavior. Financial risk tolerance moderates the relationship. Among demographic factors, age and occupation influence responsible financial management behavior.,The financial knowledge used in the survey are based on self-reported responses. The future study can include participants from both developed and emerging countries to assess similarities and differences.,Despite the growing focus on improving financial literacy, there are growing concerns regarding responsible financial behavior. Since financial services is related to fiduciary responsibility, managers and policymakers need to ensure that financial knowledge results in improving financial attitude, which further leads to responsible financial behavior.,The present study from an emerging country will add value to the literature.
33 citations
TL;DR: In this paper, the authors investigated the determinants of consumers' intention to adopt or continue to use Internet-only banks based on the benefit-risk framework and network externality theory.
Abstract: The purpose of this study is to investigate the determinants of consumers' intention to adopt or continue to use Internet-only banks based on the benefit–risk framework and network externality theory. It also examines the difference in the determinants between pre- and postadoption stages of innovation.,The proposed research model was tested by using online survey data collected from a South Korean sample, which was divided into two subgroups of 321 nonadopters and 351 existing users.,In both pre- and postadoption stages, the number of services provided and trust had a significant positive impact on consumers' behavioral intentions, while security risks had a negative impact. Critical mass in the preadoption stage and convenience and economic efficiency in the postadoption stage had positive effects on consumer's adoption intention and continuance intention, respectively.,Internet-only banks must reduce the security risks for consumers and increase their trust. In addition, to facilitate the adoption of nonadopters, focus should be on securing a critical mass; on the other hand, to promote the continued use of existing users, the focus should be on enhancing benefits such as convenience and economic efficiency.,The results of this study confirm the influence of network externalities on consumers' adoption and use of financial technology services and show differences in consumer decision-making according to the innovation diffusion process.
32 citations
TL;DR: In this article, the role of board gender diversity on environmental, social, and governance (ESG) performance of the banks is still unaccounted for, drawing on resource dependence and legitimacy theory.
Abstract: Purpose: Gender diversity in corporate boards is broadly studied in existing corporate governance literature. However, the role of board gender diversity on environmental, social, and governance (ESG) performance of the banks is still unaccounted for. Drawing on resource dependence and legitimacy theory, this study addresses this pressing research issue. Moreover, investigation of ESG controversies as moderator paves the existing corporate governance research to the new avenues.
Design/methodology/approach: Data sourced from Refinitiv database on 37 US banks from the period of 2013 to 2017. This study employs static and dynamic panel regression models that include random effects, fixed effects and dynamic generalised method of moments (GMM) to test the hypotheses. Furthermore, system GMM is used to reduce the issue of endogeneity, measurement error, omitted variables bias and bank-specific heterogeneity.
Findings: We identify a significant positive relationship between board gender diversity and the ESG performance of US banks. However, the result propounds non-significant moderating effect of ESG controversies on the board gender diversity – ESG performance nexus.
Originality/value: Literature on board gender diversity and ESG separately and predominantly explains firm/bank’s financial performance. This study is one of the pioneering attempts to explain the role of board gender diversity on ESG performance. Although incremental, however, this study also contributes to the literature on ESG in the US context.
32 citations
TL;DR: Zhang et al. as discussed by the authors investigated female managers' emotional labor employing a cross-level analysis in financial services setting and found that the positive relationship between customer orientation and job satisfaction in frontline employees is strengthened by increases in female managers's deep acting, but it is weakened with the increase in their surface acting.
Abstract: Emotions and emotional labor play a crucial role in professional interactions. Due to the increasing participation share of women managers in the workforce, especially in the customer-oriented service context, this study adopts a multilevel approach and mobilizes person–job fit theory to investigate whether the emotional labor of female managers influences the association between customer orientation and job satisfaction in frontline employees in a services setting.,The participants were 124 immediate female managers working in bank branches and their 896 customer-facing employees in China.,The results show that the positive relationship between customer orientation and job satisfaction in frontline employees is strengthened by increases in female managers' deep acting, but it is weakened with the increase in their surface acting.,The study findings provide support for scholars and financial service organizations as they seek to better understanding the dynamics behind the mobilization of women's emotions and their extent. In term of limitations, the data were taken from a single type of organization located in the northern cities of China, so it can be expected that the findings of this study will not generalize to all contexts.,This paper is the first to investigate female managers' emotional labor employing a cross-level analysis in financial services setting.
29 citations
TL;DR: In this paper, 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 was examined.
Abstract: This 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.,The 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.,Findings 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.,This 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.,The 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.
27 citations
TL;DR: In this paper, the authors investigated the effect of appearance, lifestyle and status similarity on interaction intensity, satisfaction with a banker and repurchase intention, and the moderating effect of client knowledge on the enhancement of customer satisfaction.
Abstract: The objective of this study was to investigate the effect of appearance, lifestyle and status similarity on interaction intensity, satisfaction with a banker and repurchase intention. Also examined was the moderating effect of client knowledge in the enhancement of customer satisfaction with a banker.,A total of 800 questionnaires using the snowball sampling technique were performed to distribute the questionnaires to bank customers at different ethnic community centers in New Zealand. A total of 377 useable questionnaires were collected for further analysis.,The findings indicated that the three types of similarity affect interaction intensity differently. Lifestyle similarity was found to positively influence interaction intensity. The similarity constructs of appearance and status were found to have an insignificant relationship with interaction intensity. The findings show that appearance similarity and interaction intensity are able to enhance customer satisfaction with a banker. Customer satisfaction with a banker has a significant relationship with repurchase intention. Client knowledge influences the degree of interaction intensity and satisfaction with a banker.,The findings of this study help bankers to understand the importance of their similarities with a customer and to design recruitment strategies and training sections to improve customer satisfaction.,This study contributes to the body of knowledge by incorporating interaction intensity, similarity and satisfaction with a bank into the repurchase intention model.
TL;DR: In this paper, a content analysis was performed based on the corporate websites of leading banks included in the Dow Jones Sustainability World Index and the Hang Seng Corporate Sustainabilities Index to assess the prominence of SCSR communication.
Abstract: Increased public scrutiny and stakeholder pressure have given more importance to strategic corporate social responsibility (SCSR) and its three dimensions – orientation, process and value creation. At the same time, they provide banks the inspiration needed to pursue business goals, attain positive performances and communicate their social responsibility efforts. This paper analyses whether and how companies in the banking sector use corporate websites to communicate SCSR dimensions.,A content analysis was performed based on the corporate websites of leading banks included in the Dow Jones Sustainability World Index and the Hang Seng Corporate Sustainability Index to assess the prominence of SCSR communication.,The study shows that banks give less prominence to SCSR on corporate websites differently from companies belonging to other sectors, as they are less likely to expose their orientation to SCSR and pay slightly less attention to value creation than other companies.,The paper provides theoretical insights into SCSR dimensions and how they are communicated on corporate websites. From a practical standpoint, the study provides guidance for managers in the banking sector aimed at improving their communication efforts, avoiding decoupling issues and adopting a consistent value creation perspective.,Few studies have used a value creation perspective to differentiate between the dimensions of a SCSR approach. The paper fills this gap by assessing the communication efforts adopted by banks and insurance companies in this area.
TL;DR: In this article, the authors examined the impact of mobile service experience on trust of elderly consumers in their financial institution and assess whether age (55−64 years vs 65+ years) exerts a moderating influence.
Abstract: This study seeks to examine the impact of mobile service experience on trust of elderly consumers in their financial institution and assess whether age (55–64 years vs 65+ years) exerts a moderating influence.,A self-administered questionnaire was completed online by 390 panelists (aged 55 years or more) who use their mobile devices to conduct banking activities. A multigroup analysis was conducted to assess the moderating role of age.,Results confirm the presence of links between four out of five dimensions of the mobile banking service experience (cognitive, positive affective/sensory, negative affective and social) and trust. Findings further point to age-specific variation in the impact of mobile service experience dimensions on trust, thus supporting the notion that the elderly represents a clientele with different experiential needs. More specifically, whereas the social dimension has a greater influence on trust in individuals 65 years of age and over (seniors), the positive affective/sensory dimension exerts a deeper marked impact on trust in individuals 55–64 years of age (pre-retirees).,Although generations and chronological age are powerful segmentation variables, it might be interesting to consider perceived age. Redoing the study in a post-COVID context would also be an interesting avenue of research.,The ageing market is important for banks. This study highlights, in an m-banking context, which dimension of experience to focus on in order to improve trust in banks for pre-retirees (emotional/sensory dimension) and seniors (social dimension).,This study is the first to consider mobile service experience of elderly individuals as well as the impact of each of the experience dimensions on an important relational variable, namely trust. By considering the age of individuals as a moderating variable, this study also provides an in-depth examination of age-related links and presents a number of relevant recommendations for financial institutions.
TL;DR: In this paper, the authors empirically examined how family financial socialization affects individuals' financial outcomes, including financial literacy, financial behavior, and financial well-being, based on the FFST.
Abstract: The objective of this study was to empirically examine how family financial socialization affects individuals' financial outcomes, including financial literacy, financial behavior and financial well-being, based on the family financial socialization theory (FFST).,Using a national representative sample of 6,311 US respondents from the 2016 National Financial Well-Being Survey, structural equation modeling (SEM) was conducted to test the hypotheses in this study. Sampling weights were incorporated into the structural model using the maximum likelihood estimation with robust standard errors and a Satorra-Bentler scaled test statistic (MLM estimation).,This study concludes the effectiveness of family financial socialization by showing that parental financial socialization has significant positive impacts on financial literacy, financial behavior and financial well-being. In addition, parents' education can significantly influence the quality of parental financial socialization.,The result underscores the importance of financial socialization in the family context and encourages parents to discuss financial matters with their children at home. Detailed implications have been provided to financial educators, practitioners and policymakers to incorporate parental involvement in the design of financial education programs, as well as financial services providers to improve marketing strategies for their banking services.,This research is amongst the first to empirically explore the relationships among parental financial socialization, financial literacy, financial behavior and financial well-being based on the FFST. The study also contributes to the literature by confirming the effects of parental socialization received in childhood on adults' later financial outcomes.
TL;DR: In this paper, the authors verified the effect of interactivity and social presence on engagement with bank customers, how much these relationships affect the experience with the brand and their effect on satisfaction and loyalty, while highlighting the differences between the digital service channels (weblogs and apps).
Abstract: In this work, the author verified the effect of interactivity and social presence on engagement with bank customers, how much these relationships affect the experience with the brand and their effect on satisfaction and loyalty, while highlighting the differences between the digital service channels (websites and apps).,The author conducted a survey, collecting responses from 390 users of banking websites and mobile banking. Structural equation modeling (SEM) analyzed the data, with the use of the PLS-MGA group method.,Results reveal the positive effects of interactivity and social presence on brand engagement and positive associations between brand engagement, brand experience, satisfaction and loyalty. The results also reveal that brand experience completely mediates the effect of brand engagement on satisfaction and that the effect of social presence on engagement is higher for users of banking websites versus users of mobile banking apps.,There is a possibility of different results in cultures where the use of IT and the use of digital platforms of banking technology are less intense. Furthermore, other segments, besides banking, could be an opportunity to improve knowledge about these effects.,This study contributes to practice by showing the importance of interactive elements and social presence in digital channels to generate engagement with the brand, resulting in more positive experiences that increase bank customer satisfaction and loyalty.,This study confirms the relationships between interactivity, social presence and engagement, also confirming that social presence mediates the relationship between interactivity and brand engagement.,An important original contribution is the effect of engagement as an antecedent of the experience with the brand, which results in elevated satisfaction and loyalty of the bank customer.
TL;DR: In this article, a survey was carried out among university students in the United Arab Emirates who have used the m-payment method and a structural equation modeling technique was used to test and analyze both the measurement model and the structural model.
Abstract: This study contributes to the limited and rather fragmented research on mobile payment (m-payment) within a post-adoption context by identifying individual characteristics (personal innovativeness and m-payment self-efficacy) and m-payment quality characteristics (system quality, information quality and service quality) that can influence expectations about performance and effort of this technology. These two outcome expectations may affect user satisfaction with m-payment, which will in turn influence users' continued intention to use this technology.,A survey was carried out among university students in the United Arab Emirates who have used the m-payment method. Structural equation modeling technique was used to test and analyze both the measurement model and the structural model.,Individual characteristics are important in establishing users' expectations of the ease of use and usefulness of m-payment. However, of the quality characteristics, only system quality significantly affected users' expectations of the ease of use and usefulness of m-payment.,The findings of this study provide unique insights into the individual and quality characteristics that will eventually lead to continued intention to use m-payment. This will help businesses to develop appropriate marketing strategies to increase adoption and use of m-payment.
TL;DR: The present study is the first of its kind to highlight the importance of financial literacy in improving the QoL of consumers with chronic diseases.
Abstract: The purpose of this paper is to investigate whether financial distress explains the relationship between financial literacy and quality of life (QoL) among consumers who have faced life-threatening cancer. To extend this line of research, the moderating role of social supports in the relationship between financial distress and QoL is examined.,A cross-sectional survey was utilized to collect quantitative data through a self-administered questionnaire. A total of 223 consumers diagnosed with cancer in Iran participated in the study by means of a convenience sampling technique. Using a forward–backward method the questionnaire was translated from English into Persian.,The findings highlight the importance of financial literacy in managing direct and indirect costs of chronic diseases that in turn can improve consumers' QoL. Moreover, while perceived social support improves QoL of consumers diagnosed with cancer, it strengthens the negative association between financial distress and QoL. Consequently, solely receiving of emotional support from acquaintances with no financial support might be bothersome.,The findings highlight the need for interventions that target financial literacy and perceived financial distress for consumers with chronic diseases. These consumers can benefit from interventions that offer support based on accurate assessments of their needs and priorities.,The present study is the first of its kind to highlight the importance of financial literacy in improving the QoL of consumers with chronic diseases.
TL;DR: The authors examined family structure differences in debt types and burdens of American families using data from the 2016 Survey of Consumer Finances and found that married with children families are more likely than five other family types to have any debt.
Abstract: The purpose of this study was to examine family structure differences in debt types and burdens of American families.,Data was from the 2016 Survey of Consumer Finances. Eight types of family structures, five specific debts, and two debt burden indicators are examined with multivariate logistic regressions.,After controlling for several socioeconomic variables, multivariate logistic regression results show that married with children families are more likely than five other family types to have any debt. In terms of specific debt, married with children families are more likely than six other types of families to have mortgages, four other types to have credit card loans, five other types to have to vehicle loans, three other types to have education loans, and one other type to have purchase loans. Married with children families are more likely than three other types of families (childless married couples, single males, and single females) to be late in debt payment for 60 or more days.,The data is limited to one-year cross-sectional data. To gain more insights on this topic, panel data could be used.,The findings can be used for financial service professionals to identify loan demand and risk associated with various family structures and develop effective marketing strategies to serve these clients.,The findings are informative for public policymakers to develop family friendly economic policies and for consumer educators who help consumers make effective financial decisions when borrowing various types of loans.,First, this study uses an innovative definition of family structure that counts several nontraditional family structures. Second, this study examines family structure differences in holdings of five specific debts together.
TL;DR: In this article, the authors explore gaps in bank privacy protection practices and advocate for banks to integrate market-oriented approaches in their corporate digital responsibility (CDR) initiatives to minimize consumer data vulnerability.
Abstract: This conceptual paper explores gaps in bank privacy protection practices and advocates for banks to integrate market-oriented (MO) approaches in their corporate digital responsibility (CDR) initiatives to minimize consumer data vulnerability.,To apply MO in CDR, this study recommends adoption of a behavior change framework comprising of the co-creation, build and engage (CBE) model and proposes the creation of consumer segments based on generational cohort and tailoring strategies through motivation, opportunity and ability (MOA) model to manage vulnerability.,The study specifies that managing consumer data vulnerability requires a unique strategy different from conventional service delivery. A holistic approach is recommended by integrating corporate digital responsibility as a pivotal element of organizational strategy and by positioning vulnerable customers as a critical stakeholder.,The paper contributes to the research in corporate social responsibility (CSR), privacy and data vulnerability in the banking sector in two prominent ways: first, the study demonstrates the importance of MO as a premise to develop a novel version of CDR called market-oriented digital responsibility (MODR). The study considers MODR as a strategy to reposition vulnerable consumers as a key stakeholder, and, second, the study proposes an innovative set of consumer segments based on data vulnerability and introduces a data vulnerability growth model (DVGM) connecting vulnerability with age.
TL;DR: In this article, an inverted U-shaped curvilinear relationship between perceived customer participation and employee work engagement was found to have a significant impact on work engagement, while work engagement positively affects organizational citizenship, job satisfaction and commitment.
Abstract: To reduce costs, many banks have increased customer involvement during the creation and delivery of their products and services. Based on a job demands-resources (JD-R) model, this study tests an inverted U-shaped curvilinear relationship between perceived customer participation and employee work engagement. Customer orientation (CO) and service employee perceived fit with customers (PCF) moderate this relationship, which eventually affect both the internal and external benefits of service-employee work engagement.,The authors collected survey data from 518 service employees in the South Korean banking and insurance industries and analyzed the data using structural equation modeling (SEM).,The results indicate that perceived customer participation (PCP) has a significant inverted U-shape effect on work engagement. Results also suggest that CO and PCF have positive relationships with work engagement. In addition, they moderate the inverted U-shaped relationship between service employee PCP and work engagement, while work engagement positively affects organizational citizenship, job satisfaction and commitment.,The authors empirically identify a curvilinear effect of PCP on work engagement. In doing so, the authors introduce and operationalize the new construct: PCF and suggest PCF and CO as unique job resources for service employees. The authors also examine these constructs as predictors based on a motivational process and as moderators based on a strain (energetic) process.,From a managerial perspective, examining the curvilinear relationships of customer participation and work engagement suggests that front-line employees’ (FLEs’) PCP does not necessarily enhance the economic benefits of productivity gains by using customers as substitutes for portions of employee labor. Another finding with managerial relevance indicates that service employees, who have more CO and PCF, showed more tolerant attitudes toward unnecessary and excessive levels of customer participation and regarded it as a job resource.,This study explains that researchers must consider the positive and negative sides of customer participation simultaneously because frontline employee PCP can be changed depending on the level of participation provided by customers. This study also shows that CO can be assumed as a personal resource and PCF as an environmental resource in the work engagement process.
TL;DR: In this paper, the authors examined the relationship between bank concentration, financial inclusion, and SME financing availability and found that bank concentration and financial inclusion respectively have positive impacts on the credit available to listed SMEs, indicating that the promotion of financial inclusion has reached a new high watermark.
Abstract: Purpose – The promotion of financial inclusion can disturb the composition of traditional bank concentration and change the relationship between bank concentration and the availability of SME financing. This paper concentrates on a less frequently explored area of research by examining the relationships between bank concentration, financial inclusion, and SME financing availability, respectively, and the interaction between bank concentration and financial inclusion after the implementation of a financial inclusion strategy in China. Design/methodology/approach – Using firm-level data from 1,509 listed SMEs in China from 2007 to 2017 and applying rigorous analyses, we identify how bank concentration affects SME financing availability under the promotion of financial inclusion and also the mechanisms involved. Findings – We find that bank concentration and financial inclusion respectively have positive impacts on the credit available to listed SMEs, indicating that the promotion of financial inclusion in China has reached a new high watermark. The positive impact of bank concentration is reduced when the level of financial inclusion is high. Conversely, a higher level of financial inclusion favours SME credit availability at only a low degree of bank concentration. Our findings suggest that financial inclusion has a substitution effect on bank concentration and has enabled us to add new interpretations to relevant theories, namely, the Market Power and Information Theories respectively. Originality/value – This study provides new insights into the relationship between bank concentration and SME finance availability under the promotion of financial inclusion.
TL;DR: In this paper, the relationship between the assignments of financial management responsibilities and the level of financial literacy within married and cohabitating couples was examined using dyadic survey data, and the authors found that the status of household financial manager was not as crucial for financial literacy as was the selfperception of engagement in household financial management.
Abstract: The article aims to study the relationship between the assignments of financial management responsibilities and the level of financial literacy within married and cohabitating couples.,The link between household financial management and the financial literacy of union partners was examined using dyadic survey data. In the dyadic multilevel regression analysis, the financial management process was scrutinized, and two distinct measures of financial literacy (tested and self-assessed) were used as the outcomes in the analysis.,The extent to which married and cohabitating individuals engage in household financial management was found to positively correlate with their financial literacy. Self-reports about the division of financial management responsibilities were found to be biased with individuals typically overestimating their share in household financial management. Consequently, the status of household financial manager was not as crucial for financial literacy as was the self-perception of engagement in household financial management. Despite the benefits of intrahousehold labor specialization, delegation of sole responsibility for household financial matters may place the person who waives the responsibility at a serious risk of self-exclusion from lifelong financial learning.,The article uses dyadic data (from married and cohabiting couples), which ensures more rigorous and accurate evidence for the link between the household financial management and financial literacy. A novel approach to the analytical treatment of partners' contradictory reports on the role of couple's financial manager is also proposed. The breadth of household financial management is captured by analyzing three stages of the process: proposing, decision-making and implementation of financial solutions or actions.
TL;DR: In this paper, the authors examined whether different customer segments exist in the bank services industry, based on the emotions they experience when using the service, and then, two-step clustering analysis was developed for customer segmentation on data from 451 bank service customers.
Abstract: Emotional and affective responses are experienced during service use that determine customer behavior; and for this reason, bank services require an better understanding of the emotions customers feel in service experiences. This research aims to examine whether different customer segments exist in the bank services industry, based on the emotions they experience when using the service.,The factors were examined through confirmatory factor analysis (CFA). Then, two-step clustering analysis was developed for customer segmentation on data from 451 bank service customers. Finally, an Anova test was conducted to confirm the differences among the obtained customer segments.,Our findings show that the emotion-based segmentation is meaningful in terms of behavioral outcomes in bank services. Further, research findings indicate that bank service customers cannot be perceived as a homogenous group, since four customer clusters emerge from our research namely “angry complainers”, “pragmatic uninvolved”, “emotionally attached customers” and “happy satisfied customers”.,Our findings show that the emotion-based segmentation is meaningful in terms of behavioral outcomes in bank services. Further, research findings indicate that bank service customers cannot be perceived as a homogenous group, since four customer clusters emerge from our research namely “angry complainers”, “pragmatic uninvolved”, “emotionally attached customers” and “happy satisfied customers”, being the “angry complainers” the most challenging customer group.,The study is the first one to specifically segment bank customers based on the emotions they experience when using the service.
TL;DR: In this article, the effect of the lettering case on investment intentions was investigated and it was found that people tended to have a high level of perceived trustworthiness, which led to high investment intentions.
Abstract: The purpose of this study is to test the theoretical framework of lettering case, color temperature, perceived trustworthiness and investment intentions. First, it aims to test whether the effect of lettering case on investment intentions is mediated by trustworthiness. Second, the study will examine if this process is moderated by color temperature.,Following the behavioral research method, this study employed a 2 (the fully-lowercase slogan vs the initial-uppercase slogan) by 2 (warm-color design vs cool-color design) full factorial between-subject design. Two hundred participants were recruited for the experiment to test the hypotheses.,For the lowercase slogans (vs uppercase slogans), we found that people tended to have a high level of perceived trustworthiness, which led to a high level of investment intentions. In addition, the indirect effect of the lettering case on investment intentions through the perceived trustworthiness was moderated by color temperature. Specifically, the visually warm advertisement (vs visually cool design) would strengthen the effect of lowercase slogans on customers' investment intentions.,When people make a financial decision with limited, incomplete or overly complex information, simplified visual heuristics, rather than rational algorithmic processing, play a significant role in their decision-making process. However, only a limited amount of research has addressed the effect of the lettering case on customers' perceptions and the consequent decision-making process from a financial advertising perspective. This study tries to supplement and extend the visual heuristics theory, highlighting the role of simplified heuristics, rather than rational algorithmic processing, in financial customers' decision-making process.
TL;DR: In this paper, the authors investigated the relationship between interactional justice and the willingness of commercial banks' front-line staff to engage in customer-centric behaviors, as well as the mediators behind this relationship.
Abstract: While technological advances have been changing the way that services are delivered to customers, direct interaction between banks’ front-line staff and customers still holds its distinct position in the banking sector. This research investigates the relationship between interactional justice and the willingness of commercial banks’ front-line staff to engage in customer-centric behaviors, as well as the mediators behind this relationship.,This research combined both qualitative and quantitative research methods. In-depth interviews were employed to explore the potential mechanisms underlying the relationship between interactional justice and customer-centric behavior and to develop the specific measurement scale for customer-centric behavior in the banking service context. A survey was conducted to test the conceptual model using a sample of 312 customer contact employees working in Vietnamese commercial banks.,The research results indicate that interactional justice significantly enhances employees’ willingness to engage in customer-centric behaviors, and this relationship is partially mediated by overall job satisfaction and the leader-member exchange relationship.,This research faces several limitations. The first limitation concerns the fact that the data are based on self-reports, which might lead to common method biases. Second, this study used a sample drawn from the North of Vietnam only. Third, this study adopted a limited set of measurement items due to the concerns of model parsimony and data collection efficiency. Fourth, we followed prior justice work to assume the linear relationship between interactional justice and leader-member exchange, in which the leader-member exchange is hypothesized to be the outcome of fair treatment (Erdogan and Liden, 2006; Masterson et al., 2000). Last, we only considered how leaders treat their followers through the lens of interactional justice, while interactional justice differentiation has also been affirmed as a crucial determinant of leader-member exchange and employees’ performance. ,This research is noteworthy that it is the first to take a social exchange perspective to examine customer-oriented behavior as an outcome of interpersonal interactions in the workplace. Accordingly, it delivers a key message to bank supervisors: “Treat employees the way you want your customers to be treated.”
TL;DR: In this paper, the impact of perceived experiential advertising on consumer behavior (brand credibility, affective commitment and emotions) in the banking sector has been investigated using structural equations modeling.
Abstract: This article proposes two studies to demonstrate the impact of three dimensions of perceived experiential advertising – cognitive/affective/sensory advertising, relate advertising and behavioural advertising – on consumer behaviour (brand credibility, affective commitment and emotions) in the banking sector.,For study 1, a total of 506 online panellists of a recognized Canadian research firm were asked to evaluate a local bank advertisement using an online self-reported questionnaire. For study 2, a total of 65 Canadian respondents recruited through Facebook and Google adverts were asked to watch two video advertisements (one more experiential and the other less experiential). After viewing the advertisements on a computer equipped with FaceReader software by Noldus, participants completed a short online questionnaire.,Using structural equations modelling, the first study shows that brand credibility explains the positive impact of perceived cognitive/affective/sensory advertising (complementary mediation) and perceived behavioural advertising (indirect mediation only) on affective commitment. The second study illustrates that the cognitive/affective/sensory dimension is more important for experiential advertising than experiential advertising. Employing FaceReader facial expression recognition software results indicate that the bank advertisement with a higher score of perceived cognitive/affective/sensory advertising produces a higher level of happiness among respondents.,Both studies provide new insights into perceived experiential advertising and the impact of the latter on consumers. Benefits to scholars and practitioners include an enhanced understanding of advertising effectiveness in the banking sector.
TL;DR: In this paper, the authors investigated the effects of individual market orientation on proactive service behavior, and subsequently, sales performance among business-to-business salespeople in the financial service industry.
Abstract: Considering that little is known on market orientation at the individual level, this study investigates the effects of individual market orientation on proactive service behavior, and subsequently, sales performance among business-to-business salespeople. Based on social cognitive theory and competing values framework, this paper also examines the interaction effects of organizational culture on the link between individual market orientation and proactive service behavior.,The study sampled 539 business-to-business salespeople from 18 corporate banks in Kuala Lumpur by using a questionnaire survey.,The results of the study show that adhocracy culture strengthens the effects of information acquisition on proactive service behavior, while at the same time weakens the impact of coordination of strategic response on the same outcome. Meanwhile, rational culture displayed negative contingent effects of information dissemination on proactive service behavior.,Given its link to sales performance and proactive service behavior, banks should motivate their employees to embrace market orientation as individual competencies. This research outcome will aid managers in developing strategies and inculcating the right culture to ensure the market-oriented behaviors are internalized and transpired into positive outcomes.,This paper contributes to the enrichment of the existing market orientation frameworks by offering underlying mechanisms (cultural environment and proactive service behavior) through which market-oriented behaviors contribute to the sales performance of business-to-business salespeople within the financial service industry. It is also among the earliest studies that examine the influence of individual market orientation and organizational culture on proactive service behavior.
TL;DR: This article investigated the effect of perceived corporate hypocrisy on customer mistreatment behaviors within the banking industry and the moderating effects of customer-company identification and brand equity on the hypocrisy-mistreatment behavior relationship.
Abstract: The purpose of this study was to investigate the effect of perceived corporate hypocrisy on customer mistreatment behaviors within the banking industry and the moderating effects of customer–company identification (CCI) and brand equity on the hypocrisy-mistreatment behavior relationship.,Using multistage sampling, 567 South Korean banking service users participated in an online survey. Structural equation modeling (confirmatory factor analysis) and hierarchical regression analysis were used to analyze the data.,Perceived corporate hypocrisy was positively related to customer mistreatment behaviors. CCI and brand equity differentially moderated the positive relationship between perceived corporate hypocrisy and customer mistreatment behaviors. Specifically, CCI and brand equity strengthened and weakened the positive relationship between perceived corporate hypocrisy and customer mistreatment behaviors, respectively.,Marketers and banking service managers should pay careful attention to customer evaluations of their social activities and communication about the ethical values and actions of their firms. Since CCI and brand equity have contrasting moderating effects on the corporate hypocrisy-aggressive behavior relationship, marketers should devise different strategies to manage the adverse effects of such corporate crises on company-identified and brand-committed customers. For example, managers should focus on customers who actively express their deep sense of disappointment or profound anger in response to corporate hypocrisy (e.g. those with high levels of CCI) because they are likely to exhibit aggressive behaviors toward the company or its employees. Managers need to devise customized relationship-recovery strategies for such customers (e.g. forging a personal connection between the customer and service provider).,The present findings delineate the adverse effects of perceived corporate hypocrisy on customer behaviors and the moderating effect of customer relationship quality on the corporate hypocrisy-mistreatment behavior relationship within the banking industry.
TL;DR: This paper investigated the effects of combinations of message frames on consumers' mortgage decision-making and provided a combined framing model for designing advertising strategies for the financial services industry to market complex financial products such as mortgage loans to consumers.
Abstract: Mortgage lenders often combine a variety of framing strategies when developing mortgage advertisements. To date, these frames have mostly been studied separately. This paper, however, studies the combined framing effects of message valence, specificity, and temporality on consumers' mortgage decision-making.,A mixed methods design was used. First, 13 unique print ads collected from a Canadian newspaper were analyzed for content. Second, a 2 × 2 × 2 scenario-based experiment with 400 undergraduate participants examined the framing effects of valence, specificity and temporality on attitudes toward the mortgage advertising message, the product advertised, and the brand, as well as on consumers' behavioral intentions toward the advertised mortgage product.,The content analysis suggests that combined framing does exist in print ads. A positive message with a fixed term and a specific interest rate were the most commonly used frames. The experiment revealed that, for behavioral intentions, the main effect of the message temporality was significant. The effects of advertising a long-term mortgage on behavioral intentions were more favorable than those of advertising a short-term mortgage.,This research provides a combined framing model for designing advertising strategies for the financial services industry to market complex financial products, such as mortgage loans to consumers. This is relevant to lenders when designing a persuasive package or ads for potential customers.,This study is the first of its kind to investigate the effects of combinations of message frames on consumers' mortgage decision-making, while also advancing the understanding of message framing theory for the financial services industry.
TL;DR: In this article, the authors examined the salesperson-driven unethical behavior toward consumers in the retail banking context using content analysis and found that consumers expect an action regarding the staff, fixing the problem, exiting the bank or expressing the problem on the social platform.
Abstract: This study examines the salesperson-driven unethical behavior toward consumers in the retail banking context.,Consumer posts on an online social platform were analyzed using content analysis. Cluster analysis and word association analyses were conducted to analyze the posts across ethics dimensions, customer intentions and banking services.,Complaints about salesperson-driven unethical behavior were classified into three clusters: disrespect, fee deception and other deception. Four themes of consumer intentions emerged from data: expecting an action regarding the staff, fixing the problem, exiting the bank, or just expressing the problem on the social platform. There was a significant difference among clusters in terms of intentions. The deception clusters had a stronger association with fixing the problem, while the disrespect cluster had a stronger association with consumers’ willingness to express their complaints and requests regarding corrective actions for the salespeople.,Banks must differentiate their service recovery approach depending on the problem. While a refund can be more appropriate for recovering deception, a corrective action regarding misbehaving sales staff is expected by the customers for the disrespect problem.,This study contributed to the need for current research on personal selling practices and salesperson ethics in banking services. The unethical sales practices were linked to customer intentions, and several associations were found. An unethical sales behavior framework that can be used in future research was represented.