Image, performance, attitudes, trust, and loyalty in financial services

Abstract

Purpose The purpose of this paper is twofold: first, to determine the extent to which hedonic and utilitarian attitudes and loyalty are influenced by perceived financial performance (PFP) and executive compensation plan image (ECPI) in financial services; second, the authors evaluate relationships among hedonic and utilitarian attitudes, trust, and loyalty. Design/methodology/approach Using a quasi-experimental design in Study 1 the authors test the relationship between antecedents (PFP and ECPI) and relational elements (attitudes, trust, and loyalty) to address the first objective. To accomplish the second objective, the authors employ structural equation modeling in Study 2 to test the relationship among hedonic and utilitarian attitudes, trust, and loyalty. Findings Study 1 confirms that PFP and ECPI positively impact both hedonic and utilitarian attitudes but do not directly affect loyalty. Study 2 demonstrates a positive association between utilitarian attitudes and trust, although the hedonic attitudes-trust relationship is negative. Hedonic attitudes are also significantly related to utilitarian attitudes. Finally, trust mediates the relationship between attitudes and loyalty. Practical implications Building customer trust is an important correlate of loyalty, and emphasizing an attribute-based aspect of perceived financial service generates greater trust compared to enhancing a non-attribute aspect (i.e. minimizing negative effects on image of executive compensation plans). Originality/value The authors link attitude research to service/relationship quality research and discover that attitudes are indirectly related to loyalty through increases in trust. The findings suggest that perceived image and performance of financial services are important to relationship quality when applied to financial services.

The effects of attitude, trust and switching cost on loyalty in commercial banks in Ho Minh City

“…The attitude is the behavior of customers after they are aware of the service provider's products/services and their activities to their needs (Akhgari et al, 2018). Accordingly, Akhgari et al (2018) argue that attitudes include hedonic attitude and utilitarian attitude; in which, hedonic attitude refers to the bank always happy, beloved, enthusiastic, friendly with customers in all transactions; and utilitarian attitude refers to the customer always thinking about the bank when needed, dealing with the bank when the need arises and all the needs are fully met by the bank. In addition, switching costs are costs that customers incur as a result of changing brands, service providers or products (Okada, 2005;Akhgari et al, 2018).…”

“…Loyalty is considered a constant subject of discussion among researchers when it comes to attracting and keeping customers coming back to deal with banks (Tweneboah-Koduah & Farley, 2015). Many studies have conducted experiments on trust affecting loyalty and the results confirm the positive influence of trust on customer's loyalty in all areas, including banking and finance industry (Sirdeshmukh et al, 2002;Akhgari et al, 2018). However, considering other issues like attitude, switching cost and trust affecting loyalty, very few studies have been accomplished.…”

“…However, considering other issues like attitude, switching cost and trust affecting loyalty, very few studies have been accomplished. Switching cost is increasingly becoming a powerful barrier to help banks preserve their customers, not only that, considering the customer's attitude is an important premise in attracting and connecting customers to banking transactions (Akhgari et al, 2018;Bravo et al, 2009). Attitude is a prerequisite for increasing the trust and loyalty of customers in the banking sector (Akhgari et al, 2018).…”

“…Switching cost is increasingly becoming a powerful barrier to help banks preserve their customers, not only that, considering the customer's attitude is an important premise in attracting and connecting customers to banking transactions (Akhgari et al, 2018;Bravo et al, 2009). Attitude is a prerequisite for increasing the trust and loyalty of customers in the banking sector (Akhgari et al, 2018). Therefore, the study of customer's loyalty needs to consider customers' attitude (Akhgari et al, 2018).…”

“…Attitude is a prerequisite for increasing the trust and loyalty of customers in the banking sector (Akhgari et al, 2018). Therefore, the study of customer's loyalty needs to consider customers' attitude (Akhgari et al, 2018). Therefore, the purpose of this study is to determine and measure the influence of Attitude, Trust and Switching Cost on the Loyalty of individual customers in commercial banks in Ho Chi Minh City; on that basis, the study proposes administrative implications to improve the loyalty of individual customers at commercial banks in Ho Chi Minh City.…”