Article

Impact of Service Quality, Service Convenience and Perceived Price Fairness on Customer Satisfaction in Indian Retail Banking Sector

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Abstract

This study examines the extent to which service quality, perceived price fairness and service convenience (antecedents of customer satisfaction) influence customer satisfaction for Indian retail banking sector. Dimensions of service quality are human behaviour, tangibility and information technology. Dimensions of service convenience are decision convenience, access convenience, transaction convenience, benefit convenience and post-benefit convenience. A cross-sectional research on 445 retail banking customers through structured questionnaire is conducted. Population of study is valued retail urban customers of public and private sector banks in Rajasthan, who frequently visit bank premises for transactions, have accounts in at least two banks and have availed of at least one information technology-based services. Results indicate that except tangibility, all antecedents of customer satisfaction have positive impact on customer satisfaction. Human behaviour contributes maximum in explaining customer satisfaction. This study highlights the importance of service quality, service convenience and price in satisfying customers. With this knowledge, bank managers can focus on these factors to satisfy customers and to retain them.

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... Academics and practitioners agree that the quality of service is a key element in the successful implementation of a service (Broderick and Vachirapornpuk, 2002;George and Kumar, 2014;Gibson, 2003;Kaura et al., 2014;Lin et al., 2012;Parasuraman et al., 1988). Both services are in traditional or Internet-based services (Parasuraman et al., 2005). ...
... Be a challenge for banking institutions, which provide electronic services, in order to provide the best service to our customers. It has become a general understanding that the quality of service will affect customer satisfaction (Kaura et al., 2014;Liang and Pei-Ching, 2015;Rod et al., 2009;Sayani, 2015;Shaik, 2014). In the context of this study we argue that: H4: "Overall Internet Banking ServQual" has positive impact to "Customer Satisfaction" ...
... Other findings stating that affect service quality on customer satisfaction in using electronic banking services is relevant to the results of previous studies which stated that the quality of service significantly affect customer satisfaction in using electronic banking facilities (Broderick and Vachirapornpuk, 2002;George and Kumar, 2014;Kaura et al., 2014;Liang and Pei-Ching, 2015;Rod et al., 2009;Sadiq Sohail and Shaikh, 2008;Siddiqi, 2011;Singh et al.;Wu et al., 2012;Zeithaml et al., 1996;Zeithaml et al., 2002). The results of this study reinforce the concept that the quality of service and customer satisfaction has a close relationship. ...
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Internet banking service has become an important part of the current banking products. It could be said almost all bank, which is operating in Indonesia, have to equip their products by providing internet-banking services for its customers. Despite the fact that the investment to build the internet banking service has been carried out by almost all banks in Indonesia, but in fact the use of internet banking adoption is still not significant. Banking in Indonesia still filled with questions about Internet banking services such as what exactly is a yearning of each customer. Because it is highly important for banking in Indonesia to fully understand the quality of the services, which they had provided. A good understanding of the customer's perception when using internet banking services will certainly be a strong foundation for bank in Indonesia to be able in provide an appropriate internet services, effective and efficient for customers. If the customer hope has been fulfilled, that customers will be satisfied and will ultimately loyal to the internet banking service. This study examines the elements that will affect the quality of the internet banking service for customers. A survey conducted by inviting 115 respondents. Data were analyzed using SEM method utilizing Smart PLS software. This study found that the "Banking Services Product Quality", "Online Customer Services Quality" "Online Information Services Quality" and "Overall Internet Banking Services Quality", an effect on customer satisfaction in using internet banking services.
... This is because the traditional dimension of "Decision Convenience", referring to the convenience of making a quick decision on where to visit and find desired products, becomes the primary concern for offline shoppers, but this dimension can be regarded as almost inapplicable to the e-commerce setting (Beauchamp and Ponder, 2010 (Dai, 2009;Dai and Salam, 2014). Studies on Banking have conceptualised Convenience in terms of same five dimensions but with different number of measurement items within each dimension (Kaura, 2013;Xie et al., 2010;Khazaei et al., 2014;Kaura et al., 2014). Similarly, for Mobile Services, studies have reported same dimensions but different measurement items (Colwell et al., 2008;Roy et al., 2016). ...
... Researchers have also focused on studying the impact of individual convenience dimensions on Customer Satisfaction (refer Tables 3 and 4). Among the five Convenience dimensions, Benefit Convenience has found maximum research support in terms of its effect on Customer Satisfaction (Colwell et al., 2008;Seiders et al., 2007;Kaura, 2013;Chen et al., 2011;Holden, 2005;Aagja et al., 2011;Xie et al., 2010;Chang and Polonsky, 2012;Kaura et al., 2014;Shekhar, 2015), followed by Decision Convenience and Post-Benefit Convenience (Colwell et al., 2008;Seiders et al., 2007;Kaura, 2013;Chen et al., 2011;Aagja et al., 2011;Xie et al., 2010;Roy et al., 2016;Kaura et al., 2014;Shekhar, 2015). Thus, the convenience in decision making and convenience of experiencing the benefits the customers receive, are important determinants of customer satisfaction. ...
... Researchers have also focused on studying the impact of individual convenience dimensions on Customer Satisfaction (refer Tables 3 and 4). Among the five Convenience dimensions, Benefit Convenience has found maximum research support in terms of its effect on Customer Satisfaction (Colwell et al., 2008;Seiders et al., 2007;Kaura, 2013;Chen et al., 2011;Holden, 2005;Aagja et al., 2011;Xie et al., 2010;Chang and Polonsky, 2012;Kaura et al., 2014;Shekhar, 2015), followed by Decision Convenience and Post-Benefit Convenience (Colwell et al., 2008;Seiders et al., 2007;Kaura, 2013;Chen et al., 2011;Aagja et al., 2011;Xie et al., 2010;Roy et al., 2016;Kaura et al., 2014;Shekhar, 2015). Thus, the convenience in decision making and convenience of experiencing the benefits the customers receive, are important determinants of customer satisfaction. ...
Article
Economies of the world have witnessed increasing significance of services in the last couple of decades, and services are consumed more than ever. Further, today's consumers are more time-stressed than ever and looking for options which can reduce their investment in terms of time and effort while they search, purchase, consume and dispose services. Owing to this, researchers have focused on conceptualising service convenience, which deals with time and effort as non-monetary resources as they are used during entire consumption process to create value. This paper reviews the existing literature on service convenience and examines the directions in which the past studies have focused. It highlights the gap in existing literature to identify future research directions in service convenience domain. Based on the literature review, antecedents and consequences of service convenience are identified and a comprehensive model, depicting the relationship of service convenience with other important constructs, has been developed.
... The results showed that there was a positive relationship between on time delivery on customer satisfaction. Kaura, Prasad, and Sharma (2015) examined the extent to which service convenience influence customer satisfaction for Indian retail banking sector. Findings showed that service convenience had a significant effect on customer satisfaction. ...
... Thus, reducing cost and time of transactions. This assertion is buttressed by Kaura (2015) who also reported that service convenience significantly influence agency banking Findings further showed that service reliability, the third predictor have a positive and significant effect on customers' satisfaction. The implication is that if agent's services are reliable, customers will be happier and will be willing to patronize agency banking more. ...
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The study investigated the effect of agency banking services on customer satisfaction in Nigeria. Specifically, it examined the effect of agency services (quality, convenience and reliability)on customers' satisfaction and analysed the effect of agency banking on financial inclusion. Random Sampling technique was employed to select 240 customers and 40 Point of Sales (POS) operators for the study. Well structured questionnaires were developed to elicit information from the respondents. Data were analysed using Regression and Karl Pearson correlation techniques. Findings revealed that agency banking services (in terms of service reliability, quality and convenience) correlated positively and significantly (p<0.05) with customer satisfaction. This implied that agency banking is a veritable tool for financial inclusion and economic development. The study recommends that the Central Bank of Nigeria (CBN) should encourage banks to come up with more agent banking structures in order to deliver their services to low income and vulnerable groups in the society and promote financial inclusion.
... Customers' perceived price has largely shown to be a major driver of affect and behavioral intentions in the extant marketing literature (Kaura et al., 2015;Ryu & Han, 2010). Kaura et al. (2015) identified that consumers' perceived price derived from service quality and convenience influences their affective evaluation and purchase behaviors in the retail banking sector. ...
... Customers' perceived price has largely shown to be a major driver of affect and behavioral intentions in the extant marketing literature (Kaura et al., 2015;Ryu & Han, 2010). Kaura et al. (2015) identified that consumers' perceived price derived from service quality and convenience influences their affective evaluation and purchase behaviors in the retail banking sector. Ryu and Han (2010) investigated diverse quality factors and their role in the restaurant industry. ...
Article
The present study aimed to delineate overseas travelers’ behavioral intention formation for revisiting and recommending Thailand for wellness spa tourism. In addition, cross-cultural differences were examined between Chinese and US travelers. Our results successfully built a sturdy framework linking the second-order structure of wellness spa quality, price perception, brand loves, and behavioral intentions in sequence. Moreover, this research successfully deepened their behavioral intention generation process by adding the significant moderating impact of culture (Chinese and US travelers). Our findings help Thailand destination marketers improve its destination competitiveness using wellness spa tourism as a tool.
... Therefore, service convenience refers to "consumers' time and effort perceptions related to using or buying a service" (Berry et al., 2002, p. 5). Service convenience is an idea and thought of adding value to the customers/tourists and reducing the effort and time that customers spend (Kaura et al., 2014). Consequently, service convenience refers to "consumers' time and effort perceptions related to using or buying a service" (Berry et al., 2002, p. 5). ...
... Similarly, Chang and Polonsky (2012) asserted that convenience is associated with satisfaction in relation to repurchase intentions. Moreover, according to Kaura et al. (2014), the customer can easily approach to the service providers by having access conveniences; therefore, it assists in escalating his or her satisfaction. Another similar study by Kaura et al. (2015) regarding service convenience, service quality, price, loyalty as well as examined the mediating role of satisfaction and found that transaction convenience indicates the positive and direct effect on satisfaction. ...
Purpose The objective of this study is to investigate the qualities of a delighted cruise travelling experience and proposed cruisers’ experience, service convenience, and perceived overall value as the drivers of cruisers’ satisfaction and revisit intention. Thus, the attributes of effective cruise marketing strategy in formulating consumer’s recreational experiences are examined. Design/methodology/approach A total of 287 questionnaires were collected and structural equation modelling (SEM) technique was used to analyse data obtained from cruise travellers. Findings The empirical results indicated that service convenience and cruisers’ experience significantly influence perceived overall cruisers’ satisfaction and revisit intention whereas perceived overall cruise value influence perceived overall cruisers’ satisfaction but not cruisers’ revisit intention. Furthermore, empirical assessments support that service convenience is a higher-order model (reflective-reflective) consisting of decision convenience, access convenience, transaction convenience, benefit convenience, post-benefit convenience. Originality/value This research is among ongoing attempts that have been carried out regarding qualities of cruise satisfaction and revisits intention and uncovers recreational experiences to propose an effective cruise-marketing strategy.
... Studies have been undertaken in Pakistan [26]; India [27,28,29,30]; Ghana [31]; Ethiopia [32] and Bangladesh [33]. It is to the studies in developing economics that this paper seeks to contribute. ...
... Based on the study, it was revealed that, BK employees had skills and knowledge in the performance of the services to customers. Customers feel respected and have generated feelings of security with bank, highlighting the importance of human contact [27,28]. Considering the quality dimensions, the largest perceptions of Bank of Kigali were in terms of the tangibility dimension. ...
... Customers have expectations about the value of a product or service which can be seen as perceived price (Matzler et al., 2006;Lichtenstein et al., 1990). Thus, reasonability, transparency, and fairness in banks' service charges are a matter for customers (Kaura et al., 2014;Kaura et al., 2013). According to Bolton et al. (2003) and , fairness is a judgment of an outcome that is acceptable such as market prices. ...
... The variable Price Transparency in our analysis indicates less impact on customer satisfaction compared to Trust and Employee Competences in PV. According to previous studies the customer tends to have high expectations regarding price, hence being able to see the value of a product or service, where reasonability, transparency, and fairness in bank's service charges are considered to be essential in the decision-making process of accepting a product and being satisfied (Kaura et al., 2014;Lichtenstein et al., 1990;Matzler et al., 2006). ...
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[Introduction] Cooperative banks in France have a major impact on the finance industry and the French economy. The French financial ecosystem differs in comparison with other European countries because of a higher number of cooperative banking groups, which have a dominant market share in the financial industry. With a highly competitive retail banking market frequently described as a commoditized space, customer satisfaction remains the largest competitive advantage for banks. [Research Purpose] Overall, the ambition of this research was to gain a deeper understanding of customer satisfaction in the retail banking market segment. The fundament of this thesis is a theoretical framework that analyzed customer satisfaction for retail clients of cooperative banks. By this, we identified which characteristic of the relationship between customers and their cooperative bank has the highest impact on customer satisfaction. Thus, our research question implied a search to explain an underlying causal relationship between six different variables within Perceived Quality and Perceived Value with customer satisfaction. Perceived Value (PV) included Trust, Employee Competences, and Price Transparency. Perceived Quality (PQ) included Accessibility, Reliability, and Reactivity. [Methodology] By adopting a quantitative approach, we could test, support and rank which variables impact customer satisfaction for cooperative banking clients. The analyzed dataset comprises a total of 21 914 respondents which are customers from 142 cooperative banking branches in France. [Results & Conclusion] From the analysis of the empirical results, we answered our research question by detailing the relationships between perceived quality; perceived value, and customer satisfaction. Finally, our findings indicated that Perceived Quality contributes to customer satisfaction in cooperative banking to a larger extend than Perceived Value. Moreover, the study ranked the importance of each variables impacting customer satisfaction as follow: (1) Accessibility, (2) Employee Competences, (3) Trust, (4) Reliability, (5) Price Transparency, (6) Reactivity.
... Numerous aspects impact a digitalized corporation's satisfaction, and the price is one of the forceful aspects (Mlekwa, 2014). There is a high obligation to formulate a pricing approach in the service sector, keeping in sight the perception of digitalized corporations, suggesting an energetic affiliation between pricing and satisfaction (Kaura et al., 2014). In the case of a digital marketplace, prices form the basis of digitalized corporation's expectations and are elementary because there is high competition among online portals, and price serves as a convincing aspect to gain customer satisfaction (Ren et al., 2018). ...
Article
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Purpose of the study: This research is conducted on the digital marketing industry flourished by digitalized corporations, based on their websites and different social media channels. In this study, we tried to determine the behavior of digitalized corporations in the context of price fairness and customer perceived quality. We also examined the trust of the digitalized corporations, satisfaction, and loyalty with the online portals. Methodology: This study uses cross-sectional data of CEOs and other authorities of digitalized corporations. SPSS version 22 and AMOS version 21 are used for data analysis. Data is collected by distributing 400 questionnaires for this quantitative study. The convenience sampling technique is used for data collection. Main Findings: After analyzing the collected data, we found that price fairness is a more favorable factor than customer perceived quality. Trust and customer satisfaction are also important factors to generate loyalty. If online portals make their policies friendly for the digitalized corporations in pricing, they can get many customers on their platform. Hence, they can get a high volume of business opportunities. Novelty/Originality of the study: The previous research regarding social media is generally based on consumers’ behavior in favor of digitalized corporations, while we examined digitalized corporations' behavior regarding digital marketing techniques in the Pakistani context. The relationship between online portals and digitalized corporations was investigated. Applications of the study: This study is significant for the digitalized corporations in observing the fair dealing of online portals in the context of perceived quality and fair pricing. Then digitalized corporations develop trust with these portals and finally become loyal. This study recommends online portals focus on their pricing policies to enhance customer satisfaction.
... Also, since there are differences in how consumers perceive service across countries and cultures, the result cannot really be generalized (Mohsan et al., 2011). Many initial studies have analyzed both the dimension of SERVQUAL (Ali and Raza, 2017;Ravichandran et al., 2010;Ladhari, 2009) and SERVQUAL as a whole variable (Famiyeh et al., 2016), corporate image (Zameer et al., 2015;Roche, 1970), and price fairness (Kaura et al, 2014;Zietsman et al, 2019) as the antecedent factors of customers satisfaction. ...
... In addition, low convenience implies that customers' service outcome in terms of satisfaction is greatly affected. Kaura et al. (2014) noted that service convenience largely influences customer satisfaction. We argue in this article that customers' convenience which is largely related to customers' time and effort in making a purchase influences their satisfaction. ...
Article
The buying of cars is an important decision that customers make. Consequently, customers in their attempt in ensuring that they get a good deal go a great length in providing their skills, knowledge, and ideas to effect the design and specifications of their purchase. In this context, the purpose of this article is to first, measure two antecedents of customer participation in value co-creation in terms of customer willingness and customer ability; second, to measure how co-creation translates into customer satisfaction; and finally to examine the moderating effect of both price fairness perception and service convenience on satisfaction. With this objective, empirical data were collected through the administration of questionnaires to customers of automobile buyers in 30 dealer shops in Ghana. The proposed hypotheses were tested using SmartPLS 3.2.6 to perform structural equation modeling. The results showed that the two antecedents (willingness and ability) positively influences co-creation; co-creation significantly influences customer satisfaction; price fairness perception and service convenience not only influences satisfaction but they both have a positive moderation. The direct results between willingness, ability, and satisfaction also indicated positive relationship. Theoretical contributions, managerial implications, and suggestions for future research were discussed.
... In addition, low convenience implies that customers' service outcome in terms of satisfaction is greatly affected. Kaura et al. (2014) noted that service convenience largely influences customer satisfaction. We argue in this article that customers' convenience which is largely related to customers' time and effort in making a purchase influences their satisfaction. ...
Article
Full-text available
The buying of cars is an important decision that customers make. Consequently, customers in their attempt in ensuring that they get a good deal go a great length in providing their skills, knowledge, and ideas to effect the design and specifications of their purchase. In this context, the purpose of this article is to first, measure two antecedents of customer participation in value co-creation in terms of customer willingness and customer ability; second, to measure how co-creation translates into customer satisfaction; and finally to examine the moderating effect of both price fairness perception and service convenience on satisfaction. With this objective, empirical data were collected through the administration of questionnaires to customers of automobile buyers in 30 dealer shops in Ghana. The proposed hypotheses were tested using SmartPLS 3.2.6 to perform structural equation modeling. The results showed that the two antecedents (willingness and ability) positively influences co-creation; co-creation significantly influences customer satisfaction; price fairness perception and service convenience not only influences satisfaction but they both have a positive moderation. The direct results between willingness, ability, and satisfaction also indicated positive relationship. Theoretical contributions, managerial implications, and suggestions for future research were discussed.
... The life satisfaction scale measure was accessed by five items adapted from Diener et al. [61], which refers to the overall perception of urban residents about their living conditions. The convenience scale measures the access of urban services for residents, using six items derived from Kaura et al., [62]. The emotional well-being variable was measured using eight items to refer to the subjective emotional state of urban residents. ...
Article
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The rapid development of smart cities has raised concerns about residents’ emotional well-being (EWB). To enhance EWB when developing smart cities, policy-makers should take residents' perceptions and attitudes into account. How can residents' perceptions about smart city development help promote their EWB? In this paper, we constructed a comprehensive model to explore the effect mechanism of perceived smart city developments on residents’ EWB by considering the factors of stress, convenience, and life satisfaction (LS). Using a sample of 428 urban residents in a Chinese smart city, the paper verified the conceptual model by using a structural equation model (SEM) analysis. The results showed that: (1) perceived smart public service (PSPS) can increase EWB by reducing stress; it can also increase EWB by the mechanism of improved LS, brought about by this reduced stress. Perceived smart infrastructure (PSI) will reduce EWB by increasing stress; it can also decrease EWB by the mechanism of reduced LS, brought about by increased stress. (2) Perceived smart public administration (PSPA), PSPS, PSI, and perceived smart environmental protection (PSEP) can enhance EWB via the mechanism of increasing convenience and thereby improving LS. (3) Finally, the statistically insignificant relationship between convenience and LS may be due to the interaction effect of stress and convenience, because the interaction term between convenience and stress has a significant effect on LS, resulting in four insignificant indirect effects involving PSPA, PSPS, PSI, PSEP and EWB vis-à-vis convenience. Overall, this paper contributes to crossdisciplinary research on residents' perceptions with respect to smart city development, and provides guidelines for governmental policy-making in the planning of smart cities.
... Differential prices are perceived fairer when they are socially inspired and focused than when they are inspired by firm self-interest (the price fairness mean was higher for social motive compared to the firm-self motive). Kaura et al. (2014Kaura et al. ( , 2015 in their study of Indian retail banking customers found that perceived price fairness along with service quality and service convenience significantly explained the customer satisfaction. Similar results were obtained by Alzoubi et al. (2020) in telecommunication service context in UAE. ...
Article
Purpose Pricing is always a fundamental marketing element. In the digital marketing/e-commerce context, there are two universal phenomena: desire to micro-segment and customize, and the adverse reaction upon unfair perception of price. A third related question is how should firms consider price increases and decreases? Specifically, this paper aims to address the following three research and practice questions: What are the theoretical underpinnings of perception of fairness/unfairness in pricing, and what are the findings? What are the theoretical underpinnings of response to price increases and decreases? What should be online pricing strategy, consistent with the findings on (un)fairness perception of pricing and response to price increases and decreases? Design/methodology/approach The present approach is integrative review and critical analyses, and synthesis. The review dates back to 1960s, and is inter-disciplinary, including apposite findings in behavioral science, economics, marketing and operations management/research. The authors search for insights with significant empirical support to address these questions. Findings Perception of unfair price impacts consumer choice, probability of purchase, intent to buy and attitude to product/service/firm adversely. Consumers react differently to perceived unfair and fair prices. Consumers react more strongly and negatively to perceived unfair prices (compared to prices perceived to be fair) in their intent to buy and other related metrics. Consumers react differently to price increases and price decreases relative to the reference price. Consumers react more strongly to price increases than to price decreases. There is substantial heterogeneity in the magnitude of loss-aversion effect, depending on the product/service category and estimation methods. Originality/value The authors review and discuss potential viable pricing strategies. Based on the generalizable findings, this study provides actionable insights to managers for pricing in digital marketing context. Also, the authors provide useful directions for future research.
... The SAIS Service Convenience is essential because it can lower the actual time and effort costs of the customer to interact with the service offer by the institution and improve consumers' satisfaction. As Kaura, et al. (2015) stated, when customers can conveniently and easily experience the benefits of the services, they are more likely to be satisfied, repeat the process and recommend to others. ...
Article
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Student Activity Information System (SAIS) was developed with the aims to efficiently record the applications of student’s activity at the Faculty of Business and Management (FBM), Universiti Teknologi MARA (UiTM) Selangor, Malaysia and to assist the administrator to manage the students’ activities effectively. By using different e-service quality dimensions, this study proposed a higher order factor of SAIS Service Quality with an attempt to determine a moderating effect of SAIS Service Convenience between the relationship of SAIS Service Quality and Student’s Satisfaction. Quantitative data was gathered from 94 SAIS users and the data were analyzed by using SmartPLS 3.0. The analysis result showed that SAIS Service Quality and SAIS Service Convenience were positively influenced the student’s satisfaction. Moreover, the result also revealed that the higher order factor of SAIS Service Convenience was not to moderate the relationship between the SAIS Service Quality and Student’s Satisfaction. From the Higher Education (HE) perspective, this study provides an empirical validation of the Information System Service Quality Model particularly in the context of SAIS. Hence, the improvement of the e-service quality is essential for future enhancement of existing information systems in the higher education institutions.
... Studies show that consumers' perceived minimization of nonmonetary expenditures in terms of time and effort (convenience) positively influences their satisfaction (Andaleeb and Basu, 1994;Kaura et al., 2014). Two conceptualizations of customer satisfaction have evolved: transaction-specific and cumulative (Olsen and Johnson, 2003). ...
Article
Purpose Demand for service convenience, defined as a consumer’s perception of minimized time and effort spent to obtain a service, has increased in conjunction with certain sociocultural and demographic changes. Previous research notes the significance of service convenience, but the importance of different dimensions of service convenience and the role of key moderators affecting the link between convenience and satisfaction (like customer psychographic and sociodemographic characteristics) remain unaddressed. Thus, the purpose of this research is to identify those customer groups for which offering convenience will have the highest leverage to increase satisfaction. Design/methodology/approach Two models are developed and tested: a multidimensional model of service convenience with a formative measure of five service convenience dimensions, namely, decision, access, search, transaction and after-sales convenience, and a moderator model hypothesizing different customer psychographic and sociodemographic characteristics (time pressure, shopping enjoyment, age, household size and income) that affect the link between service convenience and satisfaction. Findings This study reveals that search convenience, followed by transaction and decision convenience, exerts the greatest influence on the perception of overall service convenience. In addition, those who value service convenience most are high-income, time-pressed consumers in smaller households who experience low shopping enjoyment. Originality/value Providers have limited budgets for enhancing their services. Thus, it is important to identify which dimension has the greatest influence on the perception of service convenience and the customer segments for which service convenience is most critical.
... Likewise Masih and Helmi (2017) found significant impact of price fairness on brand switching behaviors. While, contemporary researchers like Zietsman et al. (2019) establish price fairness as the most significant relational building tool in financial sector. in the similar vein , price fairness revealed the most significant predictor of customer satisfaction in Indian retail banking sector (Kaura et al., 2014). In a nutshell, we can assume that price fairness perceptions have significant impact on the consumer buying behaviors particularly in the formation of customer loyalty. ...
Article
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Customer loyalty has gained foremost attention among the practitioners and the academic researchers because of its proximity to organizational growth, profit and survival. Based on existing literature, this study has highlighted a few critical issues related to the telecommunication sector in Pakistan such as the decline in subscriber growth, decrease in average revenue, and the increasing trend of users switching among the telecom operators. The objective of the present study is to analyze the impact of perceived service quality, price fairness; justice to service and relational bonds on customer loyalty with the mediating role of customer satisfaction .the framework of the present study is based on the expectancy confirmation model and the principles of reciprocity. Data for the current study was collected from 539 prepaid subscribers based in four major capital cities of Pakistan through questionnaires by adopting the proportionate stratified random sampling. The collected data was analyzed by using SPSS version 23 and the Smart PLS Structure Equation Modeling (PLS-SEM). Findings of the study revealed that perceived service quality and customer satisfaction are the main driving forces to customer loyalty. Moreover, customer satisfaction successfully mediates between exogenous and endogenous variables. The present study has also suggested some theoretical and practical contributions.
... Customers seek service providers' offerings that are convenient in terms of search, access, purchase and use (Seiders et al., 2000). Literature has also revealed that convenience is an important service attribute that influences consumers' evaluation of service encounters with Islamic banks (Seiders et al., 2000;Abduh et al., 2012;Subhani et al., 2012;Ramadan, 2013;Ramdhony, 2013;Kaura et al., 2014). Therefore, we can hypothesise that: ...
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Purpose The purpose of this paper is to identify factors affecting word-of-mouth (WOM) towards Islamic Banking (IB) in Jordan through understanding the roles of service quality and perceived value. Design/methodology/approach A self-administered survey was hand-delivered to the targeted sample of Islamic banks customers in Jordan. The authors delivered 400 questionnaires to customers from which 352 were deemed valid for the analysis. Exploratory and confirmatory factor analyses were performed to assess the research constructs validity and composite reliability. Structural path analysis was also used to test the research model and hypothesised relationships between the variables. Findings Service quality has a positive and significant effect on perceived value and WOM towards IB. Convenience has a positive and significant effect on perceived value. Finally, perceived value has a positive and significant effect on WOM towards IB. Service quality exerted the strongest effect on perceived value and WOM. Also, 38 per cent of variation in perceived value was caused by religious motives, service quality and convenience path, whereas 34 per cent of variation in WOM towards IB was caused by perceived value, service quality and convenience path. Research limitations/implications Future research needs to investigate other factors that may affect customers’ WOM concerning IB such as perceived bank image, trust and subjective norms. Future research should investigate other dimensions of perceived value such as social, psychological, emotional, sacrifice value and product values and how they affect WOM. From an international marketing standpoint, comparative studies between Jordanian and non-Jordanian Islamic customers are potential areas of future research for international marketing strategies and cross-cultural consumer behaviour analysis. Practical implications The paper identifies the determinants of WOM towards IB. Managers should focus on executing service quality strategies customised towards IB. Convenience is a major driver of perceived value and, then, WOM towards IB. Managers need to focus on key marketing messages that enhance religious motives in customers’ minds and hearts; however, attracting new customers and retaining the current ones depend on the perceived benefits in the areas of service quality, convenience and several value aspects. Originality/value This study is the first of its kind to test a model of WOM determinants in IB in Jordan. The study is thought to have made a reasonable contribution to consumer behaviour literature and, specifically, for decision-making process through developing and testing a model of WOM determinants towards IB. The study offers CEOs and marketing managers of Islamic banks new insights into the determinants of WOM and how they contribute to consumers’ decision-making process and attitudes to achieve the intended behavioural outcomes towards IB, which were not available at their hands before. These empirical findings are crucial inputs for marketing strategy formulation and implementation.
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Purpose The increasing number of banks in the Ghanaian banking industry has brought about intense competition in the industry. The purpose of this paper is, therefore, to examine the factors that influence retail banking customers’ loyalty intentions. Design/methodology/approach In order to validate the proposed research model, the study adopts a survey design. Data were collected from 565 customers of the top performing banks in terms of customer deposits. Data analysis employed the partial least squares structural equation modeling (PLS–SEM) using SmartPLS version 3. Findings Results from the PLS–SEM analysis indicated that satisfaction, service quality and trust had significant effect on loyalty, with satisfaction having the most significant effect. Interestingly corporate image was found to have a significant effect on both satisfaction and trust but not on loyalty. In all, the proposed model accounted for 63.3 percent of the variation in loyalty. Research limitations/implications The current study samples customers from only the top performing banks in Ghana. The use of cross-sectional data makes it impossible to study how customers’ perceptions change over time. Results from this study could, however, help managers of banks in designing strategies aimed at improving customer loyalty in order to consolidate their market share. Originality/value This paper adds to existing works that focus on loyalty in the retail banking sector, especially from the context of a developing economy. The study draws attention to the interrelationship among service quality, perceived value, satisfaction, image, trust and loyalty.
Research
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Firms in the service industry have experienced a 15-30% drop in customer satisfaction ratings and an estimated $10 billion annually due to the unpredictable tendencies of one of the most significant and fastest growing consumer segments in the marketplace, Generation Y customers. The distinctive behavior of this sizeable generational cohort may be reshaping the business landscape of the 21st century regarding how consumers will relate to service providers in the future.
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Purpose The purpose of this paper is to test perceived price and service quality as mediators between price fairness and perceived value in service encounters between micro-enterprises and their banks. Design/methodology/approach The study is based on a self-administered and internet-based questionnaire conducted in the banking industry. The sample consists of 381 micro-enterprises in South Africa that employ one or two staff members. Findings The findings of this paper provide evidence for both theory and practice that perceived price and service quality influence the relationship between business banking customers’ perception of price fairness and the value of the service offered. Research limitations/implications The measurement and structural properties reported are satisfactory. This paper confirms the hypothesized relationships in the tested research model, and rejects a tested rival model. Limitations are reported, and suggestions for further research are provided. Practical implications This paper offers banking executives guidance in managing the pricing structure of their services, and highlights the value of offering greater transparency with regards to service charges and interest rates. Originality/value This paper contributes to insights into the mediating effects of perceived price and service quality between price fairness and perceived value in business relationships between micro-enterprises and their banks.
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This study reports an application in the hospitality industry of the SERVQUAL model developed by Parasuraman, Zeithaml and Berry. Although originally developed for application within the financial services sector, the model is designed to measure those components of service that generate satisfaction within five dimensions. This study identified the existence of gaps between clients' and management perceptions of attributes of the hotel, and between client expectation and perception of the services offered. It is argued that the existence of these gaps is a source of dissatisfaction with services provided. Factor analysis identified five dimensions explaining 78 per cent of variance, but these differed from the SERVQUA L model.
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A model is proposed which expresses consumer satisfaction as a function of expectation and expectancy disconfirmation. Satisfaction, in turn, is believed to influence attitude change and purchase intention. Results from a two-stage field study support the scheme for consumers and nonconsumers of a flu inoculation.
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Suggests that the construct of convenience has not been clearly defined and operationalized. Proposes a conceptual framework which can be used to examine the convenience of consumer products, involving five dimensions: time, place, acquisition, use and execution. Discusses the implications for managers and recommends that marketers gain an improved understanding of convenience given the predicted growth of the sector.
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Service quality is becoming an important issue for Dutch car service firms. In order to measure the service quality delivered develops an instrument based on the quality dimensions and the SERVQUAL questionnaire developed by Berry, Parasuraman and Zeithaml. Describes the building and testing of the instrument. The outcome of the research is that the instrument is easily applicable for Dutch garage firms. However, in contrast with the five SERVQUAL dimensions, the customers in the Dutch car service firms only distinguish three dimensions to judge the delivered quality, one of which appears to be totally specific to this sample. The three dimensions found in the research in car service firms are: customer kindness, tangibles, and faith. Only customer kindness contributes directly to the measured service quality.
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In the present paper, we have explored pricing methods applied to charging mobile service customers, and the influences of the charging methods on the customers' price perceptions. The analyses are based on the empirical data collected from Finnish mobile service markets through a quantitative postal survey in 2003. Four hypotheses were tested separately in two customer segments for examining relationship of pricing methods and price perceptions, and the factors affecting to the customers' pricing method choices. The statistical analyses provided results suggesting that charging methods have a significant effect on customers' price perceptions. The customers' price perceptions were found to differ significantly depending on the charging methods they had in use. There was also discovered that customers' demographic backgrounds, usage experiences of mobile and fixed-line Internet services, and the reference price effect influenced significantly on the customers' choices and preferences between different charging methods. The results of this study confirmed that a mobile service provider is able obtain positive effects on the customers' price perceptions by offering right pricing methods to right customers segments. While, pricing models of one-method-fit-for-all induces negative effects.Journal of Revenue and Pricing Management (2006) 5, 207-220. doi:10.1057/palgrave.rpm.5160021
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This study considers a number of factors that could influence consumer acceptance of interactive information systems in complex service marketing situations. Further, it investigates the potential relevance of various theoretical perspectives to research involving new communication media such as videotex and teletext. Technical characteristics of the medium, which determine its degree of interactivity, are found to affect user perceptions of the medium's ‘personalness' or ‘social presence’. Characteristics of both the medium and the user are found to affect consumer acceptance of an interactive medium in a financial services setting.
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The purpose of this study is to employ structural equation modeling to find linear structural relationships related to customer satisfaction. Analysis of 495 car owners patronizing five automobile service and repair centers operated by Taiwan's three major car companies (Nissan, Toyota, and Mitsubishi), produced the following empirical results: customers' perceptions of price fairness, the level of employee–customer interaction, and customers' perceptions of product quality all have the direct, positive impact on customer satisfaction. The authors identified and examined three dimensions of perceived service quality that positively affect customers' trust levels. These three are tangibility, employee–customer interaction, and employee empathy. Customers' perceptions of price fairness and product quality, as well as customer satisfaction and trust are all positively related to customer loyalty. Customer satisfaction can also affect customer loyalty by helping customers create trust. In light of these empirical findings, this study also includes a discussion of possible implications for managers.
Quality in tourism-related services, like in services in general, are basically about balancing customer perceptions and expectations. Successful service providers are able to meet and, whenever possible, exceed consumers' needs and wants. This way, it is possible to provide memorable experiences to visitors. In delivering services, due to certain specific characteristics of services (e.g., intangibility, simultaneity, variability and perishability), the human element, in particular the ‘face-to-face’ interaction with the customer, plays a fundamental role. The study stresses the contribution of interpersonal variables for the success of service organisations. It discusses how commitment to customer service, and supportive supervisors and co-workers, influence the relationship managers' ability to satisfy customers. The main findings were as follows: (i) commitment to customer service and co-workers' support have direct and positive effects on the ability to satisfy customers; (ii) commitment to customer service is the most important determinant of the ability to satisfy customers, and works as a mediator for the other independent variables; (iii) co-workers' support, having both direct and mediated effects, is a more important predictor than supervisors' support. The available data indicates that there is a need for specific training for supervisors, in order to increase their awareness of the impact of their performance on the service delivered by contact employees. Moreover, it is important that service organisations are capable of providing employees with a holistic view of the service delivery chain. This includes not only relationship managers, but also those who are not in direct contact with external customers. Apart from these training aspects, the results of this study should also be considered in relation to other management issues, namely in human resources management. Organisations should prevent the risk of losing those employees that show more commitment to customer service and more ability to satisfy customers. Employee retention exerts a positive impact on repurchase, which, in turn, influences profitability. In light of these findings, some managerial implications are suggested.
Article
This research investigates the antecedents and consequences of customer satisfaction. We develop a model to link explicitly the antecedents and consequences of satisfaction in a utility-oriented framework. We estimate and test the model against alternative hypotheses from the satisfaction literature. In the process, a unique database is analyzed: a nationally representative survey of 22,300 customers of a variety of major products and services in Sweden in 1989–1990. Several well-known experimental findings of satisfaction research are tested in a field setting of national scope. For example, we find that satisfaction is best specified as a function of perceived quality and “disconfirmation”—the extent to which perceived quality fails to match prepurchase expectations. Surprisingly, expectations do not directly affect satisfaction, as is often suggested in the satisfaction literature. In addition, we find quality which falls short of expectations has a greater impact on satisfaction and repurchase intentions than quality which exceeds expectations. Moreover, we find that disconfirmation is more likely to occur when quality is easy to evaluate. Finally, in terms of systematic variation across firms, we find the elasticity of repurchase intentions with respect to satisfaction to be lower for firms that provide high satisfaction. This implies a long-run reputation effect insulating firms which consistently provide high satisfaction.
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Current measures of service quality do not adequately capture customers’ perceptions of service quality for retail stores (i.e., stores that offer a mix of goods and services). A hierarchical factor structure is proposed to capture dimensions important to retail customers based on the retail and service quality literatures as well as three separate qualitative studies. Confirmatory factor analysis based on the partial disaggregation technique and cross-validation using a second sample support the validity of the scale as a measure of retail service quality. The implications of this Retail Service Quality Scale for practitioners, as well as for future research, are discussed.
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The following study both synthesizes and builds on the efforts to conceptualize the effects of quality, satisfaction, and value on consumers’ behavioral intentions. Specifically, it reports an empirical assessment of a model of service encounters that simultaneously considers the direct effects of these variables on behavioral intentions. The study builds on recent advances in services marketing theory and assesses the relationships between the identified constructs across multiple service industries. Several competing theories are also considered and compared to the research model. A number of notable findings are reported including the empirical verification that service quality, service value, and satisfaction may all be directly related to behavioral intentions when all of these variables are considered collectively. The results further suggest that the indirect effects of the service quality and value constructs enhanced their impact on behavioral intentions.