Serial mediation effect of service innovation and word of mouth on mutual fund investment decision through mobile customer relationship management

Abstract

Purpose

The purpose of this paper is to examine the effect of mobile customer relationship management (mCRM), service innovation (SI) and word of mouth (WOM) on the investment decisions (IDs) of mutual fund investors.

Design/methodology/approach

This paper presents a new model for impacting the IDs of mutual fund investors. To verify the suggested model, Partial Least Squares with Structural Equation Modelling are used. For analysis, a survey questionnaire is designed, and data inputs were invited from more than 400 online mutual fund investors in Delhi NCR.

Findings

The outcomes reveal that the ID of mutual fund investors is significantly influenced by WOM. WOM, in turn, is significantly impacted by mCRM applications through SI playing a mediating role.

Research limitations/implications

The limitation with reference to survey respondents was that only online mutual fund investors using mCRM applications were considered. Moreover, this study was conducted in Delhi NRC, and a limited sample was considered.

Practical implications

The result from this research helps the financial organisation to consider SI in their mCRM application as one of the main concerned areas for increased WOM that directly influences the ID of mutual fund investors.

Originality/value

This study highlighted the impact of SI and WOM on the mutual fund investors’ decision, who use mCRM application. The outcome may contribute to the theoretical framework of IDs concerning mCRM applications. The results of this research offer practical implications for financial organisations in strategising their marketing and product development plans in the context of mutual funds. Also, the mutual fund ID through mCRM application is positively influenced by SI and WOM using both constructs as sequential mediating tools. This research offers new insights into mCRM application for mutual fund investors and financial organisations in India.

Citation

Deb, S.K., Jain, R., Marwah, S. and Deb, V. (2024), "Serial mediation effect of service innovation and word of mouth on mutual fund investment decision through mobile customer relationship management", Journal of Science and Technology Policy Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JSTPM-01-2024-0011