Introducing a composite measure of trust in financial services

Moin, S M A; Devlin, James F.; McKechnie, Sally

doi:10.1080/02642069.2021.1969366

Cited by 4 publications

(21 citation statements)

References 120 publications

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“…The existing literature entails conceptualizations of trust (i.e. trustworthiness rather than trust) from a trustee perspective, while contextual and trustor attributes have been overlooked (Moin et al, 2021). Due to the intangible nature, the heterogeneity (Ennew et al, 2011;Sekhon et al, 2014) and the high perceived risk (Allen and Gu, 2018) of financial services, consumer trust is pivotal in this sector.…”

Section: Trust Recovery Tacticsmentioning

confidence: 99%

“…a trustor) to accept risk or vulnerability arising from the actions of another party (i.e. a trustee), with the expectation that the trustee will not act contrary to the interests of the trustor (Moin et al, 2021). Trust is a fundamental feature of social interactions and is considered the bond of consumer-firm relationships (Ennew et al, 2011), leading to several positive outcomes such as customer loyalty and commitment (Morgan and Hunt, 1994) and increased profits (Simons and McLean Parks, 2002).…”

Section: Introductionmentioning

confidence: 99%

“…In addition, most extant research treats trust from a service provider perspective (trustee). Recently, Moin et al (2021) identified five aspects of consumer trust that can be damaged in financial services: character-competence, congruence, communication, commitment and context trust. Their scale comprehensively conceptualizes trust and includes trustee-related features and trustor-and context-oriented attributes.…”

Section: Introductionmentioning

confidence: 99%

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Trust recovery tactics in financial services: the moderating role of service failure severity

Raza

Tsiotsou

Sarfraz

et al. 2023

IJBM

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PurposeGiven the fierce competition in financial services, service failure management and trust restoration tactics are becoming strategic priorities. Studies investigating trust restoration have increased over the years due to the significance of trust in services and the frequency of trust violations. Drawing on the sense-making and defensive approaches of attribution theory, this study aims to explore the effectiveness of various trust recovery tactics (e.g. apology, explanation, and investigation) in financial services considering the prevalence of service failure severity.Design/methodology/approachBased on a scenario-based survey, this study gathered data from 402 consumers of different banks in Pakistan. The study analyzed the data using ordinary least square regressions and structural equation modeling.FindingsThe study indicated that explanation is more effective in repairing character-competence and commitment-based trust, while investigation remained highly effective for inducing congruence-based trust. Interestingly, an apology was more effective for communication-based trust repairing, while context-based trust recovery was unaffected against all recovery tactics. Despite the prevalence of severe service failure, recovery actions proved fully effective for character-competence and commitment-based trust while partially effective for congruence-based trust recovery. This study also found that severe service failure undermines the effectiveness of recovery actions in repairing communication and context-based trust.Originality/valueThe study extends the literature on trust recovery by integrating sense-making and defensive attribution theory. The sense-making approach contributes to the existing knowledge on trust recovery by elucidating how consumers and service providers develop a shared understanding to facilitate the recovery mechanism of multidimensional trust in financial services.

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Section: Trust Recovery Tacticsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Trust recovery tactics in financial services: the moderating role of service failure severity

Raza

Tsiotsou

Sarfraz

et al. 2023

IJBM

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“…This makes it challenging for customers to evaluate and assess the quality of a service (Alhoqail & Floyd, 2021; Zeithaml et al, 1985). The intangibility of services causes problems with quality control for service providers, gives rise to evaluation issues for consumers, raises consumers' risk perception, and has a major impact on service marketing (Bebko, 2000; Mishra et al, 2021; Moin et al, 2021; Sun et al, 2012; Wirtz et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

“…To address this, retailers can provide a detailed product description, a free trial, or an augmented reality (AR) experience, but which product feature combination will effectively address the retailer's challenge of decreasing the MI? The offerings of the financial services sector are also highly mentally intangible, resulting in high perceived risk levels and low trust for consumers (Moin et al, 2021). Lowering the MI levels of financial services could be one way to increase trust in the financial sector's offerings.…”

Section: Introductionmentioning

confidence: 99%

How do we measure the intangible? Overcoming the measurement challenge in services

Banerji

Ramasundaram

Sreejesh

et al. 2023

Int J Consumer Studies

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Measuring service tangibility and intangibility aspects has been an interest to service researchers. While the Likert rating scale has been widely employed for measuring mental intangibility or its dimensions, it is not free from issues such as different anchoring, that is, the same words pointing to different attitudes and understanding for different individuals. The present study proposes the usefulness of a discrete choice experiment (DCE), where respondents are asked the same questions (i.e., items) and are presented with a scale while dichotomizing the possible responses for each scale item. We show that our proposed method is accurate and generalizable across contexts and samples through multiple studies. The DCE method gives managers a better way to measure intangibility or similar service constructs like service quality, which can help them manage their service offerings and make customers happier.

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The Influence of Environmental, Social, and Governance (ESG) Perception on Investor Trust and Brand Relationship Quality: A Study Among Retail Investors in Hong Kong

Pong,

Man

2024

JRFM

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Background/Introduction: Investor trust and brand relationship quality, along with initiatives for environmental, social, and governance (ESG), have become highly important. Despite their relevance, limited research has been conducted on how ESG initiatives influence investors’ perceptions in financial markets. Objectives/Aims: This work conducts a cross-sectional analysis to examine the relationship between perceived ESG initiatives and investor trust and brand relationship quality among retail investors in Hong Kong, one of one of the world’s leading financial markets. Methods: This study involved 479 retail investors. Three instruments were administered in the questionnaires: (1) the perceived environmental, social, and governance scale, (2) the investor trust scale, and (3) the brand relationship quality scale. Results: The analysis demonstrates that PESG and various aspects of investor trust and brand relationship quality had strong positive correlations. Notably, the environmental and social concerns of PESG were found to be strong predictors of investor trust and brand relationship quality, whereas governance awareness had the least effect. Conclusions: Improving a firm’s ESG image can boost investors’ confidence and the quality of brand relationships, thus aligning with sustainability and business strategies.

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Introducing a composite measure of trust in financial services

Cited by 4 publications

References 120 publications

Trust recovery tactics in financial services: the moderating role of service failure severity

Trust recovery tactics in financial services: the moderating role of service failure severity

How do we measure the intangible? Overcoming the measurement challenge in services

The Influence of Environmental, Social, and Governance (ESG) Perception on Investor Trust and Brand Relationship Quality: A Study Among Retail Investors in Hong Kong

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