Financial institutions using social media – do consumers perceive value?

Abstract

Purpose – The purpose of this paper is to examine consumer perceptions of value of financial institutions using social media to interact with consumers; if overall perceived value predicts a consumer’s intention to adopt, and if intention predicts self-reported adoption of social media to interact with a financial institution; and if perceptions of value in using social media to interact with a financial institution changes over time. Design/methodology/approach – Self-administered surveys were run at two time points; 2010 and 2014. Data were analyzed using multiple and mediated regressions, and t-tests. Comparisons are made between the two time points. Findings – Perceived usefulness, economic value, and social value predicted overall perceived value, which in turn predicted a consumer’s intention to adopt social media to interact with a financial institution. At Time 2, adoption intention predicted self-reported usage behavior. Finally, there were significant differences between perceptions across Time 1 and 2. Research limitations/implications – The implications of the research highlight the importance of overall perceived value in the role of adoption intention, and that at Time 2, adoption intention predicted self-reported adoption to read and share content. A reduction in perceptions of value and intentions from Time 1 to Time 2 could be explained by perceptions of technology insecurity. In future studies, the authors recommend examining inhibitors to adoption including hedonic value. Practical implications – The findings suggest that consumers will use social media if the sector creates and clearly articulates consumer value from using social media. The sector also needs to address technology security perceptions to increase usage of social media. Originality/value – This paper is one of the first to investigate the consumer’s perspective in social media adoption by financial institutions, by exploring the role of value in consumer adoption and usage of social media.

Digital banking, customer experience and bank financial performance

“…DB enables banks to develop services for customers, cut costs associated with sending statements by post and face-to-face transactions with customers in branches. Nowadays, customers expect to have similar levels of interactions in DB and social media (Dootson et al, 2016). As customers increasingly accept DB, more than six hundred UK bank branches have 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 (BBC, 2016;French et al, 2013).…”

“…In DB, new models are required, as customer priorities in contact services may not be applicable, for example courtesy, friendliness and personal care. Hence, new service quality measures that moderate customer satisfaction in DB have emerged (Jun and Palacios, 2016;Amin, 2016;Dootson et al, 2016). Since this study utilises some service quality measures (experience, satisfaction and loyalty), it will contribute new knowledge on any significant relationships they may have with digital bank marketing and financial performance.…”

“…In sum, using NPS categories to link customer experience (satisfaction, loyalty, and behavourial intentions, such as how strongly customers will recommend products to others) to profit, has become popular in measuring organisational performance, but has not been widely replicated in DB. Dootson et al (2016) note that perceived usefulness, economic value, and social value predict overall perceived value, which in turn predicts a customer's intention to use social media to interact with a bank. However, a major limitation of previous research in DB is showing how this type of value improves financial performance, instead of a predominant focus on service quality, satisfaction and loyalty (Jun and Palacios, 2016;Amin, 2016).…”

“…Perceived Value: Perceived value is defined as the trade-off between costs and benefits of performing a behaviour (Dootson et al, 2016). It is an important determinant of behavioural intentions to use e-commerce (Ko et al, 2009;Piyathasanan et al, 2015), and a key factor for banks (Keisidou et al, 2013;Liang et al, 2009;Garg et al, 2014;Fathollahzadeh et al, 2011), and the leisure industry (Chang and Lin, 2015).…”

Empirical Study of the Affecting Statistical Education on Customer Relationship Management and Customer Value in Hi-tech Industry

“…Guerreiro, Rita, and Trigueiros (2015) pointed out customers' distinct value, which was composed of high personalization and heterogeneity. Dootson, Beatson, and Drennan (2016) referred customer delivered value as the difference between the overall customer value and the overall customer cost; the overall customer value referred to the set of customers expecting to acquire benefits from specific products or services. Ou Yang, Shieh, and Tzeng (2013) defined customer value as consumers' comprehensive evaluation of product effectiveness according to the perceived acquisition and devotion.…”