Customer retention and cross-buying in the banking industry: An integration of service attributes, satisfaction and trust

Liu, Tsung-Chi; Wu, Li‐Wei

doi:10.1057/palgrave.fsm.4760067

Cited by 98 publications

(117 citation statements)

References 52 publications

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“…As a consequence, the possible interplay between trust and relationship commitment is not examined. On the other hand, from a recent study in the banking industry, Liu and Wu (2007) note that trust affects actual cross-buying more than customer retention. But relationship commitment is absent from their research.…”

Section: Relationship Commitment As a Determinant Of Relationship Maimentioning

confidence: 95%

The differing and mediating roles of trust and relationship commitment in service relationship maintenance and development

Aurier

N’Goala

2009

J. of the Acad. Mark. Sci.

358

312

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Relationship maintenance (customer retention and exclusivity) and development (increased service usage and cross-buying) are top priorities in Customer Relationship Management. This paper examines how service companies can effectively influence customer patronage behaviors by leveraging overall customer satisfaction, trust and relationship commitment. Using a longitudinal design over a two-year period, we merge survey metrics with actual patronage behaviors taken from a bank's database. We show that relationship commitment just enhances retention and exclusivity while trust directly influences service usage and cross-buying. As a consequence, trust appears to be highly critical for service relationship development and company profits. Furthermore, trust and relationship commitment mediate the entire impact of satisfaction which appears as a necessary but not sufficient condition for relationship maintenance and development. Satisfaction, and more generally service evaluations, must be efficiently converted into trust and relationship commitment before providing business results. Finally, we establish the temporal antecedence and the predictive power of trust and relationship commitment. Relationship commitment in year t predicts the number of service providers in year t+1 (exclusivity vs. polygamy), while trust in year t predicts the number of bank products (cross-buying) as well as the service usage level in year t+1. We then discuss managerial implications for customer relationship maintenance and development.

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Section: Relationship Commitment As a Determinant Of Relationship Maimentioning

confidence: 95%

The differing and mediating roles of trust and relationship commitment in service relationship maintenance and development

Aurier

N’Goala

2009

J. of the Acad. Mark. Sci.

358

312

View full text Add to dashboard Cite

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“…Other researchers suggest that store loyalty is a behavioural construct. This includes customer retention, repeat purchases and positive word of mouth (Hallowell, 1996;Liu and Wu, 2007). As these differences are rather slight, store loyalty and retention will be considered synonymous in the context of this study.…”

Section: Reliabilitymentioning

confidence: 99%

Examining the effect of retail service quality dimensions on customer satisfaction and loyalty: The case of the supermarket shopper

et al. 2012

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Examining the effect of retail service quality dimensions on customer satisfaction and loyalty: Purpose: Post Apartheid, the South African supermarket sector has rapidly increased in size and stature, yet customer satisfaction and fostering goodwill don't appear to have kept pace with growth. This research considers which aspects of retail service quality impact upon customer satisfaction and, ultimately, pay dividends in terms of generating store loyalty amongst urban shoppers in the middle to upper market segments.Design/methodology/approach: A survey approach was used to collect data from 307 respondents within a major metro pole area, as well as through an online interface. This was used to test our path model using Partial Least Squares (PLS) analysis. Findings:The results from the analysis concluded that two constructs, namely Physical Aspects and Personal Interaction, had a direct relationship with Customer Satisfaction. Customer satisfaction was also confirmed to be positively linked to store loyalty. Originality/Value:This research uncovers which aspects of service are most coveted by consumers in an emerging market context, as well as their effect on generating repeat business. If supermarket chains are to move beyond mere profit generation and build meaningful relationships with customers, they would best be advised to focus on the attributes of service that have a direct bearing on customer satisfaction and, in turn, long-term repeat patronage.

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“…For example, Buttner and Goritz (2008) found integrity and ability to be the important dimensions of the perceived trustworthiness of online retail shops. Similarly, customer orientation, honesty, competence, communication, and common interests (Chong et al, 2003;Ennew & Sekhon, 2007; Liu & Wu, 2007) were identified as the underlying dimensions of trustworthiness of a service provider. Although the structure of trustworthiness was best represented by model B, model C should not be completely rejected.…”

Section: Discussionmentioning

confidence: 99%

Alternative Models of Trustworthiness of Service Providers

Shekhar¹

2010

Journal of Global Marketing

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The structure and dimensionality of the trustworthiness construct are important theoretical and practical issues. Building on the work of Ennew and Sekhon and based on a sample of 625 respondents, this research identifies a six-factor structure of trustworthiness of service providers in the retail banking sector: customer orientation, integrity and honesty, communication and similarity, shared values, expertise, and ability and consistency. After assessing the reliability and validity of this factor structure, the study also compares the five alternative models of trustworthiness. Results indicated that the trustworthiness model with the six first-order factors has the best model fit. Higher order confirmatory factor analysis was used to identify three second-order trustworthiness factors, which are competency, openness, and benevolence. The various dimensions of trustworthiness are viewable as levers of improving a bank's trustworthiness in the minds of its current and potential customers.

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Customer retention and cross-buying in the banking industry: An integration of service attributes, satisfaction and trust

Cited by 98 publications

References 52 publications

The differing and mediating roles of trust and relationship commitment in service relationship maintenance and development

The differing and mediating roles of trust and relationship commitment in service relationship maintenance and development

Examining the effect of retail service quality dimensions on customer satisfaction and loyalty: The case of the supermarket shopper

Alternative Models of Trustworthiness of Service Providers

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