Examining determinants of cross buying behaviour in retail banking

Abstract

Purpose

The purpose of this paper is to examine the drivers of the customers’ cross-buying intentions for retail banking services in Hong Kong.

Design/methodology/approach

The research model was developed based on literature and tested empirically among 269 customers of retail banks in Hong Kong. Structural equation modelling was used to test the system of relationships.

Findings

The results indicate that the customers’ cross-buying intentions are primarily associated with image conflicts about the provider’s abilities to deliver high quality financial services from different activities and high levels of customer loyalty.

Research limitations/implications

The research is limited to a single country focus of Hong Kong retail banking. The generalizibility of these findings is therefore limited to this context.

Practical implications

The findings of the study have important implications for academicians in understanding what drives cross-buying behaviour as well as retail bank practitioners to help design more effective cross-buying strategies.

Originality/value

The authors show that perceived image conflict and customer loyalty directly influences cross-buying intentions and that cross-buying intentions is not affected by dimensions of relationship quality directly. However, relationship quality dimensions was found to influence customer loyalty and play an important indirect role in unlocking cross-buying intentions.

Citation

Tung, B. and Carlson, J. (2015), "Examining determinants of cross buying behaviour in retail banking", International Journal of Quality & Reliability Management, Vol. 32 No. 8, pp. 863-880. https://doi.org/10.1108/IJQRM-11-2012-0148