Customer tradeoffs between key determinants of SME banking loyalty

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this study is to demonstrate a method for estimating the tradeoffs that banking customers make between different attributes of a service, thus allowing businesses to estimate the likely impact on customer loyalty of changes in different attributes of a service. Design/methodology/approach -The data were collected using a mail survey that was sent to small to medium-sized enterprise (SME) decision makers in Hong Kong. The data were then analyzed using a choice modeling approach in the form of ordinal logistic regression. Findings -Both affective components, such as relational bonds, and cognitive components, such as perceived service quality, are shown to influence customers' switching behavior. The specific tradeoffs that customers make between these attributes are also estimated. Research limitations/implications -This study is the first to quantify the effect of different variables on SME customer loyalty in a largely disloyal services sector. The study also demonstrates and quantifies the tradeoffs that customers make between various cognitive and affective attributes. Practical implications -The tradeoff analysis shows how improvement in one attribute can have an impact that is equivalent to a change in another attribute. This provides additional strategic options for financial services marketers to cost-effectively achieve a higher level of loyalty. Originality/value -The study is the first to show how choice modeling can be used to calculate the tradeoffs that customers make in their purchase decisions, thereby providing financial services marketers with an effective way to estimate the impact of alternative strategies on customer loyalty.

The Influences of Service Personalization, Customer Satisfaction and Switching Costs on E-Loyalty

“…To the banks, a customer with multiple bank accounts in different banks is more likely to switch one or all of his accounts to another bank if he is not satisfied with the service provided (Lam et al, 2009). In this study, customer satisfaction was considered as contentment with the overall experience gained from using banking services over time (Oliver, 1980;Anderson and Srinivasan, 2003).…”

“…Having a large pool of loyal customers is generally regarded as a major source of sustainable competitive advantage (Anderson and Mittal, 2000). In the banking industry, customer retention has been found to be a key determinant for long-term profitability, as selling products to existing customers costs much less than selling to new customers (Lam, Burton and Lo, 2009). …”

Analiza elemenata kvaliteta usluga u korporativnom bankarstvu

“…Veliki broj studij a o lojalnosti i faktorima, koji vode ka lojalnosti u uslužnom sektoru, evoluirao je iz ispitivanja sprovedenih nad stanovništvom koje posluje sa bankama (Hallowell, 1996). Međutim, svega nekoliko istraživanja bilo je sprovedeno u kontekstu ispitivanja lojalnosti među korporativnim klij entima banaka (Lam, Burton & Lo, 2009) iako oni generišu veliki deo prihoda bankarskih institucij a (Tyler & Stanley, 1999).…”

“…Istraživanja su, takođe, sugerisala da tehnički i funkcionalni kvalitet usluga imaju pozitivan efekat na lojalnost MSP, naglašavajući pritom da ulaganje u stvaranje snažnih odnosa sa MSP donosi veću lojalnost preduzeća (Madill, Feeney, Riding & Haines Jr, 2002). S druge strane, Lam & Burton (2009) METODOLOGIJ A ISTRAŽIVANJA Da bi se ispitivao nivo zadovoljstva klij enata različitim elementima uslužne ponude banaka, sprovedeno je empirij sko istraživanje primenom anketnog metoda. Anketni metod je jedan od najčešće korišćenih metoda u terenskim marketinškim istraživanjima.…”

“…Veliki broj studij a o lojalnosti i faktorima, koji vode ka lojalnosti u uslužnom sektoru, evoluirao je iz ispitivanja sprovedenih nad stanovništvom koje posluje sa bankama (Hallowell, 1996). Međutim, svega nekoliko istraživanja bilo je sprovedeno u kontekstu ispitivanja lojalnosti među korporativnim klij entima banaka (Lam, Burton & Lo, 2009) iako oni generišu veliki deo prihoda bankarskih institucij a (Tyler & Stanley, 1999).Jedan broj studij a bio je fokusiran na utvrđivanje faktora koji utiču na korporativne klij ente prilikom odabira banke. Faktori vezani za spektar ponuđenih usluga, cene usluga, personalizovanu interakcij u, pristupačnost i interesne stope kreditnih linij a, istakli su se kao najznačajnij i za preduzeća prilikom njihovog odabira banke (Nielsen, Terry & Trayler, 1998).…”