Impact of employee job satisfaction and commitment on customer perceived value

Abstract

Purpose The purpose of this paper is to analyse the impact of employee job satisfaction and affective commitment as perceived by customers on customer perceived value, more specifically its benefits dimensions. Design/methodology/approach A total of 652 panellists from a large Canadian polling firm self-administer a web-based questionnaire. To measure customer perceived value, a formative index is used which contributes to topical literature through a unique methodology. Hypotheses are tested using a structural equation model. Findings An analysis of the direct, indirect and total effects confirms the unique positive impact of employee job satisfaction and affective commitment, as perceived by customers, on the emotional, social, relationship and epistemic benefits, as well as on the formative index of customer perceived value. Practical implications Customer perceptions of employee attitudes (job satisfaction and affective commitment) represent a unique opportunity for banks to differentiate their value proposition in a hypercompetitive market. Originality/value This study is the first to consider customer perceptions of employee job satisfaction and affective commitment in relation to a formative index of customer perceived value and its related benefits dimensions.

The transformative outcomes of frontline employee adaptability for service value co-creation: a study of the banking sector

“…In particular, by examining interpersonal and service-offering adaptability separately, this study elucidates the relative importance of each type of FLE adaptability in the context of financial consulting in banks. These findings offer useful implications for managers in the retail banking sector in seeking strategic solutions to achieve the dual goal of customer well-being and employee well-being (Charni et al. , 2019; Lee and Han, 2019).…”

Why do you look familiar? - Exploring the role of employee-customer identification in adapting the service offering

“…Table 2 shows that the Cronbach alpha ( α ) values for the adaptability of service offering ( α = 0.737), employee-customer identification ( α = 0.761) and work orientation (calling) ( α = 0.715) are above the threshold value of 0.7. In contrast, psychological ownership ( α = 0.685) Cronbach alpha value is considered good, while values above 0.6 are acceptable in consumer studies related to banking (Charni et al. , 2020; Cheah et al.…”

“…Table 2 shows that the Cronbach alpha (α) values for the adaptability of service offering (α 5 0.737), employee-customer identification (α 5 0.761) and work orientation (calling) (α 5 0.715) are above the threshold value of 0.7. In contrast, psychological ownership (α 5 0.685) Cronbach alpha value is considered good, while values above 0.6 are acceptable in consumer studies related to banking (Charni et al, 2020;Cheah et al, 2020;Kamath et al, 2020). The composite reliability (CR) values for all the latent constructs are above the cut-off value of 0.7 (Hair et al, 2020), confirming the internal consistency and reliability of the constructs.…”

Employee Satisfaction and Its’ Impact on Organizational Commitment: A Resource Based Approach

“…It keeps on appealing an increasing consideration by business scholars who are concerned in conduct of employees in the service sectors like commercial banks. It is critical to take note that numerous past investigations proved satisfaction of employees as a vital antecedent of affective level of commitment (Charni et al 2020;Barnes et al 2015;Lee et al 2006;Paulin et al 2006;Ramaswami & Singh, 2003). Various scientists have established that AC is the steadiest indicator in lessening employees' plan to give up the business firm (Islam et al 2014;Islam, Ahmad & Ahmed, 2013;Weng & McElroy, 2012;Felfe & Yan, 2009;Vandenberghe & Tremblay, 2008).…”