To read the full version of this content please select one of the options below:

A comprehensive hierarchical model of retail banking

Juhaida Abu Bakar (Department of Finance and Banking, School of Economics, University Utara Malaysia, Sintok, Malaysia)
Michael Daniel Clemes (Faculty of Commerce, Lincoln University, Christchurch, New Zealand)
Kathryn Bicknell (Department of Global Value Chains and Trade, Lincoln University, Christchurch, New Zealand)

International Journal of Bank Marketing

ISSN: 0265-2323

Article publication date: 5 June 2017

Abstract

Purpose

The purpose of this paper is to develop and test a comprehensive hierarchical model of behavioural intentions in the Malaysian retail banking industry.

Design/methodology/approach

The data were analysed using EFA, CFA and structural modelling.

Findings

The findings illustrate that customer satisfaction is the most important determinant of behavioural intentions, followed by switching costs, corporate image and perceived value. Service quality is indirectly related to behavioural intentions and customer satisfaction mediates the relationship between the two constructs. Customer satisfaction is strongly influenced by service quality, corporate image and perceived value. Service quality is also an antecedent of perceived value, corporate image and switching costs. The empirical results also support a hierarchical and multidimensional approach for conceptualising and measuring customers’ perceptions of service quality.

Research limitations/implications

The comprehensive hierarchical model developed in this research can be used as framework for additional studies on the banking industry.

Practical implications

The findings provide Malaysian bank managers with empirically-based insights into behavioural intentions and offer guidelines for assessing and improving service quality.

Originality/value

This is the first study that uses comprehensive hierarchical modelling to synthesise the effects of service quality, customer satisfaction, perceived value, corporate image and switching costs on the behavioural intentions of retail bank customers.

Keywords

Citation

Bakar, J.A., Clemes, M.D. and Bicknell, K. (2017), "A comprehensive hierarchical model of retail banking", International Journal of Bank Marketing, Vol. 35 No. 4, pp. 662-684. https://doi.org/10.1108/IJBM-03-2016-0041

Publisher

:

Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited