A multidimensional and hierarchical model of banking services and behavioral intentions of customers

Abstract

PurposeBanking services encounter major challenges in determining customer's psychometric behavioral intentions. Scholars suggest that a theoretical approach to better understand the key constructs of service marketing, such as service quality, perceived value, customer satisfaction, corporate image and behavioral intentions, is critical to bank performance. The present study aims to design and test a comprehensive multidimensional and hierarchical model of service quality with higher-order psychometric constructions and their mediation effects in the model.Design/methodology/approachData from a self-administered structured questionnaire are analyzed by confirmatory factor analysis and structural equation modeling.FindingsEmpirical results confirm that multidimensional and hierarchical service quality are best suited to assess overall banking service quality, in which outcome, interaction and environment quality are the important primary dimensions, with each of them having several subdimensions. Service quality is the significant antecedent of behavioral intentions, customer satisfaction, corporate image and perceived value. Customer satisfaction and service quality are the best determinants of behavioral intentions. In addition, customer satisfaction, perceived value and corporate image are complementary variables, having significant mediation effects on the relationship between service quality and behavioral intentions.Originality/valueAs a maiden study in the context of emerging economies, this research integrates a comprehensive service quality theory and valuable customer loyalty constructs, which are crucial to banks' financial performance, bolstering evidence for the theoretical pitch. This study also provides managers with a clear idea of how they can develop sustainable service marketing strategies and policies on the psychometric perceptions of customers, thereby leading banks to achieve long-term goals.

An analysis of the relationships between human, technological and physical factors in the retail banking sector

“…Results show that atmosphere negatively moderates the mediation between SSTs perception and FLEs perception; in other words, a favourable perception of the service atmosphere diminishes the mediating role of employees. On the one hand, this finding corroborates insights of marketing research (e.g., Elmashhara & Soares, 2022 ; Roggeveen et al, 2020 ; Turley & Milliman, 2000 ); and of consumer research set in retail banking (e.g., Bakar et al, 2017 ; Hossain et al, 2021 ) establishing the key role of atmosphere in shaping consumer perceptions; on the other hand, it encourages some reflections about the specific role of atmospherics in retail banking. The retail banking sector is undergoing deep transformations, deeply influenced by technological evolution, and pushed even more forward by the COVID-19 pandemic.…”

“…In other words, to redefine their value proposition in the market, players may be urged to refocus the role of bank branches, which, rather than being seen as a liability, may instead hold an enormous strategic potential. Operating branches in which technology is not dominating the service environment, rather it is fully integrated in it, may allow banks to attract diverse customer segments (e.g., customers more or less accustomed to technology usage); furthermore, by creating a pleasant atmosphere, banks may succeed ensuring those customers perceptions that are key for the overall customer evaluations of the service (e.g., Bakar et al, 2017 ; Hossain et al, 2021 ). Notably, a pleasant environment may not just improve the overall customer evaluation, rather it may also work as a relief for customers, on the one hand encouraging them to experiment technology; on the other hand, allowing banks to release more human resources and focus them on more value-added tasks, like personal consultancy.…”

Customer Loyalty towards Islamic Banks: The Mediating Role of Trust and Attitude

“…Ref. [34] studies the link between service justice, service quality, social influence, image with customer satisfaction and loyalty, and the moderating impact of ownership in the banking sector in Bangladesh. They found that service justice, service quality, and social influence are directly linked to customer loyalty.…”

Effects of Service Justice, Quality, Social Influence and Corporate Image on Service Satisfaction and Customer Loyalty: Moderating Effect of Bank Ownership

“…Technological innovation has made people more aware of what is going on in the world, especially in a service context [1]. However, COVID-19 is pushing banks to find more efficient service atmospheres due to the irregular buying patterns of customers [2]. The COVID-19 pandemic has created rumors and anxieties among customers that drastically affect their financial decisions and can impact their preand postadoption behavior, including satisfaction, patronage behavior, and word-of-mouth approach [3].…”

“…Customers tend to rate their experiences with respect to price fairness, which is likely to impact service perceptions and overall satisfaction. Thereby, an efficient service with reasonable prices becomes inevitable in achieving customer satisfaction and long-term buyer-customer relationships [2]. A substantial body of prior research has documented that instrumental and distributive justice have a significant positive influence on bank client satisfaction and behavioral intentions [6], while service quality is treated as a strategic weapon in the battle to achieve perfection in overall service accomplishment [7].…”