Customer Value Creation in Multichannel Systems: The Interactive Effect of Integration Quality and Multichannel Complexity

Abstract

This research examines factors that influence consumer perceptions of value created by a multichannel system of service delivery. The literature suggests that multichannel integration quality allows firms to benefit from the effect of synergy and complementarity between channels. We investigate the perceived value of multichannel service delivery in the context of retail banking services, where such multichannel systems are omnipresent. We propose and test a model in which multichannel integration quality is an important value driver, such that higher multichannel integration quality leads to greater value perceptions of not only the multichannel system, but also the overall value of the bank as perceived by the customer. Importantly, the complexity of the multichannel system of service delivery, as perceived by customers, moderates the direct effect of channel integration quality on perceived value of the multichannel system, so that in highly complex multichannel systems, channel integration quality will have a stronger effect on the perceived value to customer. Our findings also shed light on the specific factors that contribute to consumer value perceptions of multichannel retail banking services, which has important implications to managers and researchers.

Omni-channel banking integration quality and perceived value as drivers of consumers’ satisfaction and loyalty

“…However, slight adaptations have been made to some items in order to fit in with the context of the omni-channel in the banking context. Thus, omni-channel IQ as well as omni-channel PV scales were adapted from Kabadayi et al ’s (2017) measures. A three- item scale developed by Cronin et al (2000) was used to measure the overall customer satisfaction.…”

“…In this sense, the concept of integration quality (IQ) initially advocated in the multi-channel context (Sousa and Voss, 2006) seems to take more importance within the omni-channel. In fact, IQ has been advanced as a key element enabling a unified omni-channel experience (Hossain et al , 2017; Shen et al , 2018) that would be highly valued by customers (Kabadayi et al , 2017), and could therefore lead to a better performance of the firm, particularly through the reinforcement of customer relationship (Huré et al , 2017).…”

The Technological Disruption of Insurance Industry: A Review

“…Product differentiation can be implemented through a technological, relational or organisational change that affects the constituent elements of the delivery system, and consequently modifies the client's use of the product (Nightingale, 2003;Pires et al, 2008).It is evident that the technological evolution becomes critical when renewing the production and distribution processes of insurance services, as well as their innovation (Coelho et al, 2003).In fact, in addition to making a significant contribution to the rationalisation of the delivery systems of insurance services, the use of digitised channels also promotes the possibilities of their differentiation and innovation (Coelho and Easingwood, 2005). Therefore, by overcoming the direct relationship with sales staff and implying a greater involvement of the customer in the process of delivering, technological solutions significantly affect the degree of novelty of the service itself (Badoc, 1986;Eiglier and Langeard, 1987;Kabadayi et al, 2017).The growing dissemination of information technology allows for the expansion of distribution channels, including technological ones, while promoting the transformation of the agency in relation to both its physical and functional configuration, and its role within the relationship with the market. In this respect, Heinhuis and de Vries (2009)point out that the expansion of operational boundaries, financial innovation and the changing needs of the market have led to the emergence of favourable conditions for diversification, as well as for a certain specialisation of the delivery systems.…”

The Digital (R)evolution of Insurance Business Models

“…In light of the considerations on the matter, information technology is not only a tool for streamlining procedures and saving related costs, but also and above all, a factor of differentiation and innovation of the product/service and its delivery process, for the achievement of stable competitive advantage (Kabadayi et al, 2017).…”