Search results

1 – 10 of over 5000
Article
Publication date: 27 June 2020

Jamid Ul Islam, Shadma Shahid, Aaleya Rasool, Zillur Rahman, Imran Khan and Raouf Ahmad Rather

This paper aims to investigate how banking websites can activate customer engagement (CE) to consequently enhance customer trust and retention.

4601

Abstract

Purpose

This paper aims to investigate how banking websites can activate customer engagement (CE) to consequently enhance customer trust and retention.

Design/methodology/approach

Using an online survey, data were collected from 598 customers of various (public and private) banks in India. Structural equation modeling was used to analyze the data.

Findings

Results reveal that the key website attributes viz. website interactivity, website aesthetics, customization, ease of use and telepresence positively affect CE. The results also delineate positive associations between CE, customer trust and customer retention.

Research limitations/implications

This paper unravels that by strategically focusing on the relational dynamics of CE, banks can build trust and retain their most valuable stakeholders – the customers, thereby addressing the crucial strategic concerns of banking firms.

Originality/value

This research is the first to explore the effects of key website attributes on CE in the banking context. The undertaking of this study in an emerging economy adds further insight into CE literature by generalizing the applicability of CE studies across geographic contexts.

Details

International Journal of Bank Marketing, vol. 38 no. 6
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 12 February 2018

Dian Anggraece Sigit Parawansa

The purpose of this paper is to investigate the effect of commitment and customer’s satisfaction on the relationship between service quality and customer retention.

2787

Abstract

Purpose

The purpose of this paper is to investigate the effect of commitment and customer’s satisfaction on the relationship between service quality and customer retention.

Design/methodology/approach

The research was conducted on the entire customer rural banks (BPR) in Makassar, South Sulawesi Province; the sample size comprised 300 respondents. Analysis equipment used in this study is a quantitative approach that is inferential statistical analysis with structural equation modeling based variance is known as a method WarpPLS.

Findings

The results of the analysis show that there is significant influence between the variables of service quality, commitment, customer satisfaction, and customer retention. It was also found that the results of the variables commitment and customer satisfaction mediate the effect of service quality on customer’s retention.

Originality/value

The study showed the mediation effect (using the Sobel test) of service quality on customer retention using commitment and customer satisfaction as intervening variables in rural banks; and the study was conducted in the customer rural banks (BPR) in Makassar, South Sulawesi Province, where no such study for this relationship has been conducted previously.

Details

Journal of Management Development, vol. 37 no. 1
Type: Research Article
ISSN: 0262-1711

Keywords

Article
Publication date: 6 September 2011

Jiun‐Sheng Chris Lin and Chung‐Yueh Wu

Customer uncertainty of future contacts with the service provider creates a wide range of expectations of the relationship. Such variation and effective management of customer…

3089

Abstract

Purpose

Customer uncertainty of future contacts with the service provider creates a wide range of expectations of the relationship. Such variation and effective management of customer expectations have been not been well studied. The purpose of this research is to investigate the role of customers' expected future use in relationship based customer retention for continuously provided services, proposing and testing an empirical model that explores the interconnectedness of relationship quality, expected future use and customer retention.

Design/methodology/approach

A theoretical framework is developed to suggest the role of expected future use in relationship‐based retention. Extant research from various academic fields, including marketing and psychology, is reviewed, deriving our hypotheses. Data collected from customers of a health club is examined through structural equation modeling (SEM).

Findings

The study supports the assertion that that the effect of relationship quality (trust, commitment, and satisfaction) on service retention is mediated by customers' expected future use. Results show that relationship quality (satisfaction, trust and commitment) is related to expected future use and retention, while expected future is also related to retention.

Research limitations/implications

This study represents an early attempt at exploring the role of customer's anticipation of future use in service retention. Future research is discussed, with an emphasis on developing additional indicators of relationship quality and future expectation related variables.

Practical implications

Service firms can increase retention through enhancing relationship quality and expected future use. Customers' expected future use plays an important role in service retention, and represents a valuable marketing opportunity in customer relationship management. Marketing managers will find it beneficial to integrate expected future use into marketing communication, retention‐based marketing, and other marketing interactions.

Originality/value

This research represents one of the first studies in service retention literature by empirically examining the role of expected future use in relationship‐based retention. Existing theories of relationship quality may also be improved with such an inclusion of customer psychological mechanism. The model provides insights into the effects of customer's expectations of future usage on customer intentions beyond traditional relationship marketing models.

Details

Managing Service Quality: An International Journal, vol. 21 no. 5
Type: Research Article
ISSN: 0960-4529

Keywords

Article
Publication date: 30 May 2018

Mushtaq Ahmad Darzi and Suhail Ahmad Bhat

The purpose of this paper is to report the findings of a study undertaken to understand customer satisfaction and customer retention in business-to-consumer markets. The study…

3089

Abstract

Purpose

The purpose of this paper is to report the findings of a study undertaken to understand customer satisfaction and customer retention in business-to-consumer markets. The study investigates the effect of personnel capability and customer satisfaction on customer retention in the banking sector. The influence of the control variable (gender) on customer retention and mediating role of customer satisfaction has also been examined.

Design/methodology/approach

The study has used structural equation modeling (SEM) for data analysis across a sample of 409 bank customers of a private bank operating in Jammu and Kashmir state of India. Questionnaires were distributed and respondents were selected through a cluster sampling technique.

Findings

The empirical analysis through SEM has confirmed that personnel capability and customer satisfaction have a significant positive impact on customer retention. Customer satisfaction partially mediates the effect of personnel capability on customer retention. Moderation analysis was performed and established that gender moderates the effect of personnel capability on customer satisfaction. It was also found that gender has no effect on other relations. Furthermore, the study shows that personnel capability has a stronger impact on customer retention as compared to customer satisfaction. However, the relationship between personnel capability and customer satisfaction is significant.

Research limitations/implications

The study has been conducted on the customers of a private bank in India. Therefore, generalizations may be limited. As personnel capability is the predictor of satisfaction and retention, individuals with proper social and technical skills – in addition to other skills – should be hired for managing relationships with customers.

Originality/value

The study has added to the understanding of the relationship which exists among the following variables: gender, personnel capability, customer satisfaction and customer retention. These variables have not been studied together previously.

Details

International Journal of Bank Marketing, vol. 36 no. 4
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 13 February 2017

Said Echchakoui

This paper aims to examine the roles of both aggregate and specific commission rates to control the sales force in relationship marketing with a customer portfolio.

Abstract

Purpose

This paper aims to examine the roles of both aggregate and specific commission rates to control the sales force in relationship marketing with a customer portfolio.

Design/methodology/approach

Drawn on the concept of customer lifetime value and agency theory, the author calculated both specific and aggregate sales force commission rates in a relationship marketing perspective. Contrary to the prior researchers, the author assumes that, at any period, both the gross margins and retention rate of each customer are a stochastic function of the salesperson’s effort.

Findings

The results indicated that when there is symmetric information between a sales manager and salesperson, both aggregate and specific commissions can be used to monitor the sales force. Under asymmetric information, however, each type of commission rate can only be used under certain conditions. In addition, conditions in which the aggregate commission is equivalent to the specific commission for each customer were derived.

Research limitations/implications

Hypothetical data were used to explain the model. It would be more appropriate to use real data to see its managerial relevance.

Originality/value

In the author’s knowledge, this study is the first that specifically links scholastic customer’s retention and salesperson commission rate to monitor salesperson effort in relationship marketing. It is also the first that shows in which conditions aggregate and specific commission rates are equal for a salesperson’s customer portfolio management.

Details

Journal of Modelling in Management, vol. 12 no. 1
Type: Research Article
ISSN: 1746-5664

Keywords

Book part
Publication date: 30 November 2020

Sadia Cheema, Malka Liaquat, Fatima Wyne and Sadia Ishaque

This chapter attempts to explore customer loyalty and retention in the context of Pakistani restaurants. Effects of customer perceived value and service quality as antecedents are…

Abstract

This chapter attempts to explore customer loyalty and retention in the context of Pakistani restaurants. Effects of customer perceived value and service quality as antecedents are tested on customer loyalty and retention along with the mediating effects of customer satisfaction and customer relationship management quality. This chapter is conducted in 15 restaurants from Multan. Results reveal how the restaurant sector lacks a monitoring mechanism that promotes an effective customer relationship. For example, what kinds of measurements the manager could use to enhance a customer's loyalty and retention.

Article
Publication date: 27 April 2020

Rasha H.A. Mostafa and Mohamed Mahmoud Ibrahim

This paper aims to investigate the effects of intrinsic and extrinsic motivations represented in religious motivation and customer equity (CE) drivers, respectively, and switching…

1029

Abstract

Purpose

This paper aims to investigate the effects of intrinsic and extrinsic motivations represented in religious motivation and customer equity (CE) drivers, respectively, and switching costs (SCs), on customer’s retention to conventional banks and their switching intention (SI) to Islamic ones in the context of the Egyptian banking sector.

Design/methodology/approach

Based on the literature, a theoretical model is proposed and examined using structural equation modeling (AMOS) 24. Data were obtained using an intercept sample of 273 conventional bank customers in two major cities in Egypt, namely, Cairo and Giza.

Findings

The results supported the positive effect of CE and SCs on customer retention (CR) to conventional banks. Value equity has direct positive effect on CR. In addition, SC significantly mediated the relationship between relationship equity (RE) and service encounter employee’s equity (SEEE) and CR. Finally, religious motivations positively and significantly influence customers SI to Islamic banks.

Practical implications

CE, including all its drivers, namely, value, brand, relationship and SEEE, are the best force of CR in the Egyptian banking sector. The mediating role of SC in the relation between RE and SEEE and CR is perceived as a barrier to switch, instead of reflecting real desire from customers to stay tuned to their conventional banks. In addition, religious motivation should be considered while planning banking services because of its significant direct effect on customers SI from conventional banks to Islamic ones. Finally, both utilitarian extrinsic motivation and hedonic intrinsic ones are influencing customer’s retention and SI, respectively.

Originality/value

This paper develops and adds a fourth driver to previously examined and validated CE drivers, namely, SEEE. Further, it provides empirical analysis to the effect of religious motivation and CE drivers on SCs, CR and SI in a developing and Islamic dominating context, namely, Egypt. Moreover, it introduces a framework that could be examined and validated in other Islamic contexts to further comprehend bank customers' switching behavior. Yet, the current research focused on the Egyptian banking sector only, where the individual customers represent the sampling unit.

Details

Journal of Islamic Marketing, vol. 11 no. 6
Type: Research Article
ISSN: 1759-0833

Keywords

Open Access
Article
Publication date: 5 September 2024

Sehrish Huma, Waqar Ahmed, Minhaj Ikram and Arsalan Najmi

Given the rising popularity of mobile commerce among young consumers, this study aims to examine the effect of mobile applications service quality (MASQ), service convenience…

Abstract

Purpose

Given the rising popularity of mobile commerce among young consumers, this study aims to examine the effect of mobile applications service quality (MASQ), service convenience (SERCON) and satisfaction contributing to the retention of young consumers towards mobile applications.

Design/methodology/approach

Primary data were collected from 213 active online young smartphone users who have used mobile apps for shopping through a structured questionnaire. Structural equation modelling is used to analyse the data.

Findings

The results of this study reveal that both MASQ and SERCON strongly support satisfaction, which leads to the retention of young customers.

Originality/value

This study is one of the few relevant pieces of research that would benefit mretailers encompassing mobile commerce applications to improve their MASQ and SERCON with cutthroat competition in gaining and retaining young customers for shopping through smartphone applications.

Article
Publication date: 19 June 2024

Shweta Singh, B.P.S. Murthi, Ram C. Rao and Erin Steffes

The current approach to valuing customers is based on the notion of discounted profit generated by the customers over the lifetime of the relationship, also known as customer…

Abstract

Purpose

The current approach to valuing customers is based on the notion of discounted profit generated by the customers over the lifetime of the relationship, also known as customer lifetime value (CLV). However, in the financial services industry, the customers who contribute the most to the profitability of a firm are also the riskiest customers. If the riskiness of a customer is not considered, firms will overestimate the true value of that customer. This paper proposes a methodology to adjust CLV for different types of risk factors and creates a comprehensive measure of risk-adjusted lifetime value (RALTV).

Design/methodology/approach

Using data from a major credit card company, we develop a measure of risk adjusted lifetime value (RALTV) that accounts for diverse types of customer risks. The model is estimated using Stochastic Frontier Analysis (SFA).

Findings

Major findings indicate that rewards cardholders and affinity cardholders tend to score higher within the RALTV framework than non-rewards cardholders and non-affinity cardholders, respectively. Among the four different modes of acquisition, the Internet generates the highest RALTV, followed by direct mail.

Originality/value

This paper not only controls for different types of consumer risks in the financial industry and creates a comprehensive risk-adjusted lifetime value (RALTV) model but also shows empirically the value of using RALTV over CLV for predicting future performance of a set of customers. Further, we investigate the impact of a firm’s acquisition and retention strategies on RALTV. The measure of risk-adjusted lifetime value is invaluable for managers in financial services.

Details

International Journal of Bank Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 11 May 2012

Yi‐Ching Hsieh, Jinshyang Roan, Anurag Pant, Jung‐Kuei Hsieh, Wen‐Ying Chen, Monle Lee and Hung‐Chang Chiu

The purpose of this paper is to explore how multichannel customers evaluate overall satisfaction across distribution channels and what the antecedents are of such satisfaction.

3688

Abstract

Purpose

The purpose of this paper is to explore how multichannel customers evaluate overall satisfaction across distribution channels and what the antecedents are of such satisfaction.

Design/methodology/approach

A survey of bank customers in Taiwan was conducted. The total number of valid questionnaires was 479. Reliability and validity were tested. Maximum likelihood procedure of LISREL 8.8 was used to test the hypothesized structural equation model.

Findings

The findings indicate that the overall satisfaction in the multichannel environment is a critical determinant of customer retention and participation. The present study also develops the antecedents of multichannel satisfaction. In the multichannel environment, perceived multichannel service quality is positively related to satisfaction, while perceived channel switching difficulty is negatively related to satisfaction.

Originality/value

The present study employs the stimulus‐organism‐response (S‐O‐R) paradigm and the channel loyalty framework to better model customers' response to marketing activities in the multichannel distribution system.

Details

Managing Service Quality: An International Journal, vol. 22 no. 3
Type: Research Article
ISSN: 0960-4529

Keywords

1 – 10 of over 5000