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1 – 10 of over 9000The main purpose of this paper is to highlight the significance of automated service factors, customer trust, and delight in customer commitment within the United Arab Emirates…
Abstract
Purpose
The main purpose of this paper is to highlight the significance of automated service factors, customer trust, and delight in customer commitment within the United Arab Emirates (UAE) banking context.
Design/methodology/approach
The relative importance of automated service factors to customer delight, trust, and commitment was examined. The paper then proposed a conceptual model of the relationship between automated factors, customer delight, trust, and commitment within the UAE banking context. A survey was designed and data collected through the mall intercept method. AMOS 6 was used to test the hypothesized relationships.
Findings
Most of the automated factors have no direct relationship with customer commitment, but an indirect one through customer trust and delight. Automated factors have a direct and positive influence on customer delight, which in turn has a direct influence on both customer trust and customer commitment. Customer trust is also related positively and directly to customer commitment.
Research limitations/implications
This research has been applied to the financial institutions in the UAE. Further testing of the proposed conceptual model across different industries and countries is needed to determine the generalizability and consistency of this study's findings.
Practical implications
The proposed model of commitment prediction has the potential to help UAE bank managers to strengthen the customer‐bank relationship and, ultimately, to enhance customer delight, trust, and commitment ratios especially in the light of the credit crunch that most banks in the UAE are facing.
Originality/value
This paper is a significant trial in showing the importance of automated service quality in gaining customers' commitment within the UAE retail banking context.
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Mohammad Al‐Hawari, Tony Ward and Leonce Newby
The main purpose of this paper is to highlight the significance of service quality factors on customer retention within the Australian traditional and automated banking contexts.
Abstract
Purpose
The main purpose of this paper is to highlight the significance of service quality factors on customer retention within the Australian traditional and automated banking contexts.
Design/methodology/approach
The relative importance of traditional and automated service quality factors on customer retention was examined with the intention of determining which indicator factors are likely to have a significant impact on customer retention. The paper then proposes a conceptual model of the relationship between service quality factors within the two contexts and customer retention. AMOS 5 was used to test for the hypothesized relationships.
Findings
All of the traditional service quality factors have positively influenced customer retention. Conversely, this paper finds that automated service quality in general has no positive significant influence on customer retention.
Research limitations/implications
This research was applied to the financial institutions in Queensland, Australia. Further testing of the proposed conceptual model across different industries and countries is needed to determine the generalisability and consistency of this study's findings.
Practical implications
The proposed model of retention prediction has the potential to help Australian bank managers to strengthen the customer‐bank relationship and, ultimately, to enhance customer retention ratios.
Originality/value
The key contribution of this paper is a conceptualisation of customer retention predictors that takes into account both traditional and automated service customer interactions with banks.
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Mohammed Al‐Hawari and Tony Ward
First, to investigate the relationship between customer perception of service quality and bank financial performance in the new context of the automated banking environment in…
Abstract
Purpose
First, to investigate the relationship between customer perception of service quality and bank financial performance in the new context of the automated banking environment in Australia. Second, to test for the mediating role of customer satisfaction in that relationship.
Design/methodology/approach
Reviews a very large literature and numerous previous empirical investigations of service quality. Defines automated service quality. Proposes a mediated model linking service quality to banks' financial performance through customer satisfaction in the context of the automated retail banking, and tests it by structural equation modelling (Amos 5).
Findings
Customer satisfaction is confirmed as a mediator in the relationship between automated service quality and financial performance.
Research limitations/implications
Further research is indicated, to validate the relevance of the findings across different countries.
Practical implications
The proposed model can guide the formulation of marketing strategies, relating to the delivery of automated services, which have the potential to achieve high levels of customer satisfaction and financial performance.
Originality/value
Contributes to the current body of knowledge by improving understanding of the main issues relating to the effect of service quality on bank profitability, and the mediating role of customer satisfaction in this new banking context.
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The results are presented of an exploratory studyon customer motivations towards the use and non‐useof an automated teller machine with datacollected from a total of 208 customers…
Abstract
The results are presented of an exploratory study on customer motivations towards the use and non‐use of an automated teller machine with data collected from a total of 208 customers of a financial institution. An analysis of results based on demographic variables reveals significant differences between users and non‐users in terms of education only. Results also show that convenient accessibility of a financial institution and avoidance of waiting lines are the principal reasons for using the automated teller. Furthermore, in comparison with non‐users, the user group is more likely to believe the automated teller improves service quality, reduces the financial institution′s operating costs, presents no personal or financial risks, and is simple to use. The non‐user group for its part prefers dealing with human tellers, finds the machine complex to use, and associates personal and financial risks with the use of the automated teller.
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The purpose of this paper is to propose and investigate the dimensions of automated teller machine (ATM) service quality and their relationship with customer satisfaction in the…
Abstract
Purpose
The purpose of this paper is to propose and investigate the dimensions of automated teller machine (ATM) service quality and their relationship with customer satisfaction in the retail banking sector.
Design/methodology/approach
A structured questionnaire gleaned from the literature was used to collect data from 530 ATM customers of 15 banks in Ghana. Descriptive statistics, confirmatory factor analysis were used to identify the dimensions of ATM service quality and their relationship with customer satisfaction.
Findings
The study found convenience, reliability, ease of use, privacy and security, responsiveness and fulfillment to be the major dimensions of ATM service quality. Apart from security and privacy, these dimensions are significantly related to customer satisfaction.
Practical implications
The ATM quality dimensions found in this study provide practical guidelines for bank managers to improve customer experience with ATMs. The relative importance of the factors identified in the study also provide managers with a sense of what issues to focus on in order to improve service delivery through the ATMs.
Originality/value
The ATM service quality dimensions found in this study have enriched knowledge in electronic banking usage in developing countries such as Ghana. In addition, the study also provides bank managers with insights into how to improve customer satisfaction in retail banking through the usage of ATMs.
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The aim of this paper is to identify the dimensions of Automated Teller Machine (ATM) service quality and to evaluate customers’ perceptions of the relative importance of these…
Abstract
Purpose
The aim of this paper is to identify the dimensions of Automated Teller Machine (ATM) service quality and to evaluate customers’ perceptions of the relative importance of these dimensions.
Design/methods/approach
A structured questionnaire gleaned from the literature and focused group studies was used to collect data from 530 ATM customers of 15 banks in Ghana. Descriptive statistics, exploratory and confirmatory factor analysis, as well as multiple regression, were used to identify the relative importance of the dimensions of ATM service quality.
Findings
The paper identified five dimensions of the “ATMqual” model. In order of importance, these dimensions are reliability, convenience, responsiveness, ease of use and fulfillment.
Practical implications
The variables of the ATMqual scale provide practical levers for bank managers to improve customer experience with ATMs. The relative importance of the factors identified in the study also provide managers with a guide as to which issues to focus on in order to improve the efficiency and effectiveness of the ATMs.
Originality/value
The paper provides a theoretical basis for conceptualising ATM service quality. The resulting dimensions, referred to as the ATMqual, thus address the paucity of a robust research in conceptualising and testing the dimensions of ATM service quality. Apart from the improved theoretical insight, the dimensions identified also provide bank managers with better understanding of and means to better manage customers’ ATM experiences.
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It is argued that auditors should have a clear view of theopportunities that exist for automated transfer, and of the controlsagainst fraud and error that are built in. The role…
Abstract
It is argued that auditors should have a clear view of the opportunities that exist for automated transfer, and of the controls against fraud and error that are built in. The role of BACS, the UK banks′ automated clearing service, is compared with some of the other computerised operations in UK banking. Types of settlements management auditors should be advising their clients to make via the BACS service are also described.
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G. Peevers, G. Douglas, D. Marshall and M.A. Jack
The purpose of this paper is to deliver empirical results on the effects of (out‐of‐band) short message service (SMS) confirmation messages after transactions have been completed…
Abstract
Purpose
The purpose of this paper is to deliver empirical results on the effects of (out‐of‐band) short message service (SMS) confirmation messages after transactions have been completed in an automated interactive voice response (IVR) telephone banking service. The research seeks to discover if SMS confirmations have a positive effect on customer relationship to furnish evidence for a proposed business case for a multi‐channel banking service. The paper aims to offer results on customer attitude on the role of SMS with IVR as a multi‐channel customer relationship management (CRM) strategy in digital banking.
Design/methodology/approach
The methodology is an empirical study based on a controlled laboratory experiment using bank customers as participants. Questionnaires and user observation techniques were employed to collect quantitative and qualitative data, which were analysed using repeated measures ANOVAs.
Findings
Transaction confirmation is shown to be important to customers – whether by an SMS message or within the IVR telephone call itself. Customers judged the role of SMS for CRM as highly desirable after monetary transactions; they prefer the version of the IVR banking service that provides (out‐of‐band) SMS confirmation compared to one that does not – and they judged it significantly higher for quality. However, there were no significant differences detected between customer attitude scores for usability of IVR calls involving funds transfers with, or without, an SMS confirmation. As a consequence, the business case was only developed as far as inclusion of transaction confirmation within the IVR call itself, and not extended to use of SMS.
Practical implications
Implications from the results are offered as management insights for the financial services sector in seeking integrated mobile CRM strategies, or “next call avoidance” strategies.
Originality/value
The paper reports findings from a controlled experiment with 116 participants that was based on extension of an existing IVR telephone banking service with which they were all familiar as users.
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Mathew Joseph and George Stone
The instalment of customer friendly technology (such as menu driven automated teller machines, telephone and Internet banking services) as a means of delivering traditional banking…
Abstract
The instalment of customer friendly technology (such as menu driven automated teller machines, telephone and Internet banking services) as a means of delivering traditional banking services has become commonplace in recent years as a way of maintaining customer loyalty and increasing market share. Traditional brick and mortar banks are using technology to meet the competitive challenge posed by online banks, as well as a method of reducing the cost of providing services that were once delivered exclusively by bank personnel. The present research investigates some of the various roles technology plays in the US banking sector and how technology in general impacts the delivery of banking service. The authors developed a grid that might prove useful to bank managers when making decisions concerning the priority of implementation of service‐oriented technology. Key strategic implications are discussed to include ways banks can improve the level of technology‐based service they provide to their customers.
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As structural changes, new market entrants, new technologies and increasing customer demands gather momentum, retail banks are under pressure to reduce their cost structures so…
Abstract
As structural changes, new market entrants, new technologies and increasing customer demands gather momentum, retail banks are under pressure to reduce their cost structures so that they can remain competitive. The banks are in danger of over reacting to these new pressures by neglecting the strategic value of their own institutional stature. Even though there is growing evidence that retail customers are not very happy with the services that banks deliver, customers still trust their banks as a safe and secure place to keep their money. They do so because of the bank’s institutional stature rather than their sophistication in customer service. The implications of this paper for both academics and practitioners are that many banks may be overlooking the importance of institutional stature as an important service differentiator and industry entry barrier.
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