Building customer loyalty in retail banking: a serial-mediation approach

Pallavi R. Kamath, Yogesh P. Pai, Nandan K.P. Prabhu

Research output: Contribution to journalArticle

Abstract

Purpose: The purpose of this paper is to advance research on the relationship between customer experience and customer loyalty by exploring the serially mediating roles of brand equity and customer satisfaction and the moderating roles of age, gender, education and family income in the retail banking industry. Design/methodology/approach: A total of 500 responses of retail banking customers were used to test the model using the partial least squares structural equation modeling approach. Advanced statistical techniques, such as importance-performance map analysis and a joint application of FIMIX-PLS and PLS-POS, were used to gain new insights. Findings: The study highlighted that the relationship between customer experience and loyalty is serially mediated by brand equity and customer satisfaction. Age, gender and education were found to be significant moderators in the customer experience–loyalty relationship. Age and gender were found to be significant moderators in the brand equity–loyalty relationship. Practical implications: The study strongly suggests that practitioners not only focus on delivering exceptional customer experiences but also on providing leverage brand equity and satisfaction to build customer loyalty. Practitioners should focus on training their front-line employees to improve the quality of their behavior and relations with customers and thereby build customer loyalty. Originality/value: To the authors’ knowledge, this is the first study to explore the mediating role of several variables sequentially and the moderating role of customer demographics in the customer experience–customer loyalty relationship.

Original languageEnglish
JournalInternational Journal of Bank Marketing
DOIs
Publication statusAccepted/In press - 01-01-2019

Fingerprint

Retail banking
Mediation
Customer loyalty
Serials
Brand equity
Customer experience
Moderator
Education
Customer satisfaction
Leverage
Customer relationship
Frontline employees
Design methodology
Family income
Demographics
Brand relationship
Banking industry
Structural equation modeling
Partial least squares

All Science Journal Classification (ASJC) codes

  • Marketing

Cite this

@article{1fc7403106974b34a897f7679c2f60b6,
title = "Building customer loyalty in retail banking: a serial-mediation approach",
abstract = "Purpose: The purpose of this paper is to advance research on the relationship between customer experience and customer loyalty by exploring the serially mediating roles of brand equity and customer satisfaction and the moderating roles of age, gender, education and family income in the retail banking industry. Design/methodology/approach: A total of 500 responses of retail banking customers were used to test the model using the partial least squares structural equation modeling approach. Advanced statistical techniques, such as importance-performance map analysis and a joint application of FIMIX-PLS and PLS-POS, were used to gain new insights. Findings: The study highlighted that the relationship between customer experience and loyalty is serially mediated by brand equity and customer satisfaction. Age, gender and education were found to be significant moderators in the customer experience–loyalty relationship. Age and gender were found to be significant moderators in the brand equity–loyalty relationship. Practical implications: The study strongly suggests that practitioners not only focus on delivering exceptional customer experiences but also on providing leverage brand equity and satisfaction to build customer loyalty. Practitioners should focus on training their front-line employees to improve the quality of their behavior and relations with customers and thereby build customer loyalty. Originality/value: To the authors’ knowledge, this is the first study to explore the mediating role of several variables sequentially and the moderating role of customer demographics in the customer experience–customer loyalty relationship.",
author = "Kamath, {Pallavi R.} and Pai, {Yogesh P.} and Prabhu, {Nandan K.P.}",
year = "2019",
month = "1",
day = "1",
doi = "10.1108/IJBM-01-2019-0034",
language = "English",
journal = "International Journal of Bank Marketing",
issn = "0265-2323",
publisher = "Emerald Group Publishing Ltd.",

}

Building customer loyalty in retail banking : a serial-mediation approach. / Kamath, Pallavi R.; Pai, Yogesh P.; Prabhu, Nandan K.P.

In: International Journal of Bank Marketing, 01.01.2019.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Building customer loyalty in retail banking

T2 - a serial-mediation approach

AU - Kamath, Pallavi R.

AU - Pai, Yogesh P.

AU - Prabhu, Nandan K.P.

PY - 2019/1/1

Y1 - 2019/1/1

N2 - Purpose: The purpose of this paper is to advance research on the relationship between customer experience and customer loyalty by exploring the serially mediating roles of brand equity and customer satisfaction and the moderating roles of age, gender, education and family income in the retail banking industry. Design/methodology/approach: A total of 500 responses of retail banking customers were used to test the model using the partial least squares structural equation modeling approach. Advanced statistical techniques, such as importance-performance map analysis and a joint application of FIMIX-PLS and PLS-POS, were used to gain new insights. Findings: The study highlighted that the relationship between customer experience and loyalty is serially mediated by brand equity and customer satisfaction. Age, gender and education were found to be significant moderators in the customer experience–loyalty relationship. Age and gender were found to be significant moderators in the brand equity–loyalty relationship. Practical implications: The study strongly suggests that practitioners not only focus on delivering exceptional customer experiences but also on providing leverage brand equity and satisfaction to build customer loyalty. Practitioners should focus on training their front-line employees to improve the quality of their behavior and relations with customers and thereby build customer loyalty. Originality/value: To the authors’ knowledge, this is the first study to explore the mediating role of several variables sequentially and the moderating role of customer demographics in the customer experience–customer loyalty relationship.

AB - Purpose: The purpose of this paper is to advance research on the relationship between customer experience and customer loyalty by exploring the serially mediating roles of brand equity and customer satisfaction and the moderating roles of age, gender, education and family income in the retail banking industry. Design/methodology/approach: A total of 500 responses of retail banking customers were used to test the model using the partial least squares structural equation modeling approach. Advanced statistical techniques, such as importance-performance map analysis and a joint application of FIMIX-PLS and PLS-POS, were used to gain new insights. Findings: The study highlighted that the relationship between customer experience and loyalty is serially mediated by brand equity and customer satisfaction. Age, gender and education were found to be significant moderators in the customer experience–loyalty relationship. Age and gender were found to be significant moderators in the brand equity–loyalty relationship. Practical implications: The study strongly suggests that practitioners not only focus on delivering exceptional customer experiences but also on providing leverage brand equity and satisfaction to build customer loyalty. Practitioners should focus on training their front-line employees to improve the quality of their behavior and relations with customers and thereby build customer loyalty. Originality/value: To the authors’ knowledge, this is the first study to explore the mediating role of several variables sequentially and the moderating role of customer demographics in the customer experience–customer loyalty relationship.

UR - http://www.scopus.com/inward/record.url?scp=85074021317&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85074021317&partnerID=8YFLogxK

U2 - 10.1108/IJBM-01-2019-0034

DO - 10.1108/IJBM-01-2019-0034

M3 - Article

AN - SCOPUS:85074021317

JO - International Journal of Bank Marketing

JF - International Journal of Bank Marketing

SN - 0265-2323

ER -