Get in with a Foreigner: Consumer Trust in Domestic and Foreign Banks

Bönte, Werner; Filipiak, Ute; Lombardo, Sandro

doi:10.5539/ijef.v9n6p38

Cited by 2 publications

(2 citation statements)

References 21 publications

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“…Results further reported a positive and a significant (b = 0.129 and P = 0.00) relationship between service provider expertise and trust in takaful products, hence H5 is accepted. These findings are in-line with the findings of Bönte et al (2017), Carey and Webb (2017), Devlin et al (2015), Gentile et al (2015), Moin et al (2017Moin et al ( , 2015 and Nansen (2017) (Table VI).…”

Section: Mediating Effect Of Service Providersupporting

confidence: 91%

The mediating effect of service provider expertise on the relationship between institutional trust, dispositional trust and trust intakafulservices

Mohy-Ul-Din

Samad

Rehman

et al. 2019

IMEFM

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Purpose This study aims to investigate the relationship between institutional trust, dispositional trust and trust in takaful products with the mediating effect of service-provider expertise. Design/methodology/approach The data for this study were collected from 385 takaful policyholders from Lahore and Islamabad, Pakistan. The relationship is estimated with PLS-SEM using the bias-corrected bootstrapping method. Findings For paths 1 and 2, the results suggest a significant positive relationship between institutional trust, dispositional trust, service provider expertise and trust in takaful products. Results for the bias-corrected bootstrapping model revealed that service provider expertise mediates the relationship between intuitional trust, dispositional trust and trust in takaful products. Research limitations/implications Data were collected from provincial and federal capital cities of Pakistan where institutional setting is much much as compared to other cities Practical implications From the managerial perspective, the dispositional trust would help them in choosing appropriate marketing strategy, segmentation, new product development, targeting and positioning to increase penetration. At the same time, takaful companies need to improve their expertise, knowledge and information-sharing mechanism for fostering overall consumer perception of trust in takaful products. Social implications Insurance, conventional or Islamic, is meant to transfer risk to the third party. Regulators need to improve overall institutional factors because improvement will strengthen the trust level of the general public. Stringent institutional settings act as a sense of strong structural assurance and situational normality. A rise in trust level would induce people to purchase more policies and carry on risky investments that would ultimately result in higher economic growth. Originality/value To the best of the authors’ knowledge, no empirical study has been conducted to examine the impact of institutional and dispositional trust on trust in takaful products with the mediating effect of service provider expertise

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Section: Mediating Effect Of Service Providersupporting

confidence: 91%

The mediating effect of service provider expertise on the relationship between institutional trust, dispositional trust and trust intakafulservices

Mohy-Ul-Din

Samad

Rehman

et al. 2019

IMEFM

View full text Add to dashboard Cite

show abstract

“…The financial markets are volatile, and due to the risk aversion nature of the Indian customers, they regard stability as one of the most important factors of building trust in a brand and its operations. Risk aversion attitude of a consumer may not influence their investment, but it will affect the trust of a consumer in a bank (Bonte and Lombardo, 2017). Customers can punish banks for their risky conduct (Martinez Peria, M. S., and Schmukler, S. L., 2001).…”

Section: Influence Of Corporate Reputation Dimensions On Bank Trustmentioning

confidence: 99%

The effect of bank reputation on loyalty – the moderating role of bank type

Sharma¹,

Joshi

2022

SAJBS

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PurposeThis paper aims to investigate the role of bank reputation (via its proposed dimensions) in influencing bank trust and its subsequent effect on the loyalty of the customer. The study has also explored the moderating role of bank type (public vs private bank) in the relationship between the dimensions of bank reputation and bank trust.Design/methodology/approachA total of 651 questionnaires were distributed to the customers of public and private bank, whereas only 375 usable responses were obtained. Questionnaires were given to the respondents through the visit of few interviewers to several private and public banks in Delhi and NCR region during December 2019 to February 2020. A screening question was included in the beginning of the questionnaire (i.e. Do you trust your bank?). Non-random sampling technique was used for data collection, and the research design was cross-sectional. The proposed framework was tested with the help of structural equation modeling.FindingsThe findings of the study show that all the proposed dimensions (i.e. service quality, stability, customer centricism and corporate performance) of corporate reputation/bank reputation significantly affect bank trust. Also, the effect of bank trust on loyalty was found significant. Bank type emerged as a significant moderator between the dimensions of bank reputation and bank trust. It shows that the effect of service quality, stability, customer centricism and corporate performance on bank trust significantly differs in public vs private banks. Customer centricism is perceived to be high in private banks, whereas all the other three dimensions are obtained to be higher in public sector banks according to the findings of the study.Practical implicationsThe presented framework in the study has covered all the significant antecedents of bank trust and its subsequent effect on loyalty. The findings of the paper are useful to several stakeholders, including bank managers, regulators, investors and depositors. The study shows that bank reputation affects trust and loyalty in the long run. This relationship can be used by bank managers for gaining the trust of customers and building loyalty. It also helps in making strategies by banks for targeting customers. Stability is a very crucial factor for a developing economy. The bank regulators can use these results for ensuring the soundness of the banking system and for providing a stable environment for customers. Bank depositors and investors can also use the findings of the study for analyzing the factors that affect their bank selection decision.Originality/valueThe present research shows that bank type moderates the relationship of the dimensions of bank reputation and bank trust in an emerging economy in Asia.

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Get in with a Foreigner: Consumer Trust in Domestic and Foreign Banks

Cited by 2 publications

References 21 publications

The mediating effect of service provider expertise on the relationship between institutional trust, dispositional trust and trust intakafulservices

The mediating effect of service provider expertise on the relationship between institutional trust, dispositional trust and trust intakafulservices

The effect of bank reputation on loyalty – the moderating role of bank type

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