A multidimensional and hierarchical model of banking services and behavioral intentions of customers
International Journal of Emerging Markets
Article publication date: 20 May 2021
Issue publication date: 21 March 2023
Banking services encounter major challenges in determining customer's psychometric behavioral intentions. Scholars suggest that a theoretical approach to better understand the key constructs of service marketing, such as service quality, perceived value, customer satisfaction, corporate image and behavioral intentions, is critical to bank performance. The present study aims to design and test a comprehensive multidimensional and hierarchical model of service quality with higher-order psychometric constructions and their mediation effects in the model.
Data from a self-administered structured questionnaire are analyzed by confirmatory factor analysis and structural equation modeling.
Empirical results confirm that multidimensional and hierarchical service quality are best suited to assess overall banking service quality, in which outcome, interaction and environment quality are the important primary dimensions, with each of them having several subdimensions. Service quality is the significant antecedent of behavioral intentions, customer satisfaction, corporate image and perceived value. Customer satisfaction and service quality are the best determinants of behavioral intentions. In addition, customer satisfaction, perceived value and corporate image are complementary variables, having significant mediation effects on the relationship between service quality and behavioral intentions.
As a maiden study in the context of emerging economies, this research integrates a comprehensive service quality theory and valuable customer loyalty constructs, which are crucial to banks' financial performance, bolstering evidence for the theoretical pitch. This study also provides managers with a clear idea of how they can develop sustainable service marketing strategies and policies on the psychometric perceptions of customers, thereby leading banks to achieve long-term goals.
Hossain, M.A., Jahan, N. and Kim, M. (2023), "A multidimensional and hierarchical model of banking services and behavioral intentions of customers", International Journal of Emerging Markets, Vol. 18 No. 4, pp. 845-867. https://doi.org/10.1108/IJOEM-07-2020-0831
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