IDEAS home Printed from https://ideas.repec.org/a/pal/jofsma/v21y2016i3d10.1057_s41264-016-0005-2.html
   My bibliography  Save this article

Customers’ dissatisfaction with banking channels and their intention to leave banks: The moderating effect of trust and trusting beliefs

Author

Listed:
  • Sertan Kabadayi

    (Fordham University)

Abstract

Banks have the challenging task of managing customer experience across many traditional and technological channels in today’s financial services world. Recent studies and anecdotal evidence suggest that many customers are dissatisfied with their experiences across channels that are supposed to provide a seamless experience. This customer dissatisfaction potentially diminishes a financial service organization’s customer base, and requires the firm to rely on a more fickle customer mix and erodes its reputation. This paper investigates the relationship between individuals’ dissatisfaction with their primary bank channel and their intention to leave their bank in the future. The first study examines individuals’ overall trust in their bank as a potential moderator in the relationship that reduces customers’ likelihood to leave the bank even though they are dissatisfied with a particular banking channel. The second study goes one step further and examines the effect of three trusting beliefs about the bank potentially held by the customer: competence, integrity, and benevolence beliefs. Findings indicate that when customers have a high level of trust in their banks, they are less likely to leave their banks even though they are dissatisfied with their primary banking channel. Furthermore, while competence and benevolence beliefs about the bank have a similar moderating effect, integrity beliefs do not.

Suggested Citation

  • Sertan Kabadayi, 2016. "Customers’ dissatisfaction with banking channels and their intention to leave banks: The moderating effect of trust and trusting beliefs," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 21(3), pages 194-208, September.
    • Handle: RePEc:pal:jofsma:v:21:y:2016:i:3:d:10.1057_s41264-016-0005-2
    DOI: 10.1057/s41264-016-0005-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41264-016-0005-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41264-016-0005-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. M. S. Krishnan & Venkatram Ramaswamy & Mary C. Meyer & Paul Damien, 1999. "Customer Satisfaction for Financial Services: The Role of Products, Services, and Information Technology," Management Science, INFORMS, vol. 45(9), pages 1194-1209, September.
    2. Chris Baumann & Kim Ngoc Phan & Nabil Ghantous, 2013. "Managing brand associations to drive customers’ trust and loyalty in Vietnamese banking," Post-Print hal-01823099, HAL.
    3. Sweeney, Jill & Swait, Joffre, 2008. "The effects of brand credibility on customer loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 15(3), pages 179-193.
    4. D. Harrison McKnight & Vivek Choudhury & Charles Kacmar, 2002. "Developing and Validating Trust Measures for e-Commerce: An Integrative Typology," Information Systems Research, INFORMS, vol. 13(3), pages 334-359, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sertan Kabadayi & Linda Alkire (née Nasr) & Garrett M. Broad & Reut Livne-Tarandach & David Wasieleski & Ann Marie Puente, 2019. "Humanistic Management of Social Innovation in Service (SIS): an Interdisciplinary Framework," Humanistic Management Journal, Springer, vol. 4(2), pages 159-185, December.
    2. Mirza Ashfaq Ahmed & Riffat Zulfiqar & Muhammad Anwar ul Haq & Noreena Kausar & Shaista Khalid, 2020. "Customer Purchase Intentions toward Islamic Banking Products in Pakistan: A Study of Religiosity-Based Marketing," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(10), pages 1187-1202, October.
    3. Mark Ojeme & Ogechi Adeola, 2023. "The relationship between business and bank: the role of perceived injustice in complaint behaviour," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(2), pages 396-409, June.
    4. Mohamed Albaity & Mahfuzur Rahman, 2021. "Customer Loyalty towards Islamic Banks: The Mediating Role of Trust and Attitude," Sustainability, MDPI, vol. 13(19), pages 1-19, September.
    5. Svenja Damberg & Manfred Schwaiger & Christian M. Ringle, 2022. "What’s important for relationship management? The mediating roles of relational trust and satisfaction for loyalty of cooperative banks’ customers," Journal of Marketing Analytics, Palgrave Macmillan, vol. 10(1), pages 3-18, March.
    6. Ishfaq Ahmed & Waqas Farooq & Tariq Iqbal Khan, 2021. "Customers’ Perceptions and their Responses to Objectives of Islamic Banks – A Three-Wave Investigation," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(1), pages 43-56, January.
    7. Sandhu, Harsimran & Deb, Soumya Guha, 2024. "Ethical dimensions of bank-distributed mutual funds," Economics Letters, Elsevier, vol. 238(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joseph A. Cazier & Benjamin B. M. Shao & Robert D. St. Louis, 2007. "Sharing information and building trust through value congruence," Information Systems Frontiers, Springer, vol. 9(5), pages 515-529, November.
    2. Cheng, Junjun & Chen, Bo & Huang, Zihang, 2023. "Collective-based ad transparency in targeted hotel advertising: Consumers’ regulatory focus underlying the crowd safety effect," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    3. Ahmed Ibrahim Alzahrani & T. Ramayah & Nalini Suppiah & Osama Alfarraj & Nasser Alalwan, 2020. "Modeling Blog Usage From a Developing Country Perspective Using Structural Equation Modeling (SEM)," SAGE Open, , vol. 10(3), pages 21582440209, July.
    4. Nitin Walia & Mark Srite & Wendy Huddleston, 2016. "Eyeing the web interface: the influence of price, product, and personal involvement," Electronic Commerce Research, Springer, vol. 16(3), pages 297-333, September.
    5. Mario Silic & Andrea Back, 2016. "The Influence of Risk Factors in Decision-Making Process for Open Source Software Adoption," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 15(01), pages 151-185, January.
    6. Bilgihan, Anil & Barreda, Albert & Okumus, Fevzi & Nusair, Khaldoon, 2016. "Consumer perception of knowledge-sharing in travel-related Online Social Networks," Tourism Management, Elsevier, vol. 52(C), pages 287-296.
    7. Sara Moussawi & Marios Koufaris & Raquel Benbunan-Fich, 2021. "How perceptions of intelligence and anthropomorphism affect adoption of personal intelligent agents," Electronic Markets, Springer;IIM University of St. Gallen, vol. 31(2), pages 343-364, June.
    8. Gordon Liu & Catherine Liston-Heyes & Wai-Wai Ko, 2010. "Employee Participation in Cause-Related Marketing Strategies: A Study of Management Perceptions from British Consumer Service Industries," Journal of Business Ethics, Springer, vol. 92(2), pages 195-210, March.
    9. Jung Lee & Jae-Nam Lee & Bernard C. Y. Tan, 2015. "Antecedents of cognitive trust and affective distrust and their mediating roles in building customer loyalty," Information Systems Frontiers, Springer, vol. 17(1), pages 159-175, February.
    10. Qin, Li & De-Juan-Vigaray, María D., 2021. "Social commerce: Is interpersonal trust formation similar between U.S.A. and Spain?," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    11. Kee-Young Kwahk & Byoungsoo Kim, 2017. "Effects of social media on consumers’ purchase decisions: evidence from Taobao," Service Business, Springer;Pan-Pacific Business Association, vol. 11(4), pages 803-829, December.
    12. Levent V. Orman, 2016. "Information markets over trust networks," Electronic Commerce Research, Springer, vol. 16(4), pages 529-551, December.
    13. Möhlmann, Mareike, 2021. "Unjustified trust beliefs: Trust conflation on sharing economy platforms," Research Policy, Elsevier, vol. 50(3).
    14. imen ABDENNADHER & Karim TRABELSI & Tarek ABDELLATIF, 2017. "Les influences des déterminants de la qualité relationnelle des banques islamiques sur l’engagement de leurs clients," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 8(1), June.
    15. Morteza Ghobakhloo & Masood Fathi, 2019. "Modeling the Success of Application-Based Mobile Banking," Economies, MDPI, vol. 7(4), pages 1-21, November.
    16. Raed S. Algharabat & Nripendra P. Rana, 0. "Social Commerce in Emerging Markets and its Impact on Online Community Engagement," Information Systems Frontiers, Springer, vol. 0, pages 1-22.
    17. Cheah, Jun-Hwa & Lim, Xin-Jean & Ting, Hiram & Liu, Yide & Quach, Sara, 2022. "Are privacy concerns still relevant? Revisiting consumer behaviour in omnichannel retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    18. Younès Boughzala & Inès Bouzid & Imed Boughzala, 2012. "Les déterminants de l'adoption de l'e-achat public en France : une étude qualitative auprès des praticiens," Post-Print hal-02408949, HAL.
    19. Wang, Fan & Gu, Jibao & Wu, Jianlin, 2020. "Perspective taking, energy policy involvement, and public acceptance of nuclear energy: Evidence from China," Energy Policy, Elsevier, vol. 145(C).
    20. Dash, Ganesh & Kiefer, Kip & Paul, Justin, 2021. "Marketing-to-Millennials: Marketing 4.0, customer satisfaction and purchase intention," Journal of Business Research, Elsevier, vol. 122(C), pages 608-620.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jofsma:v:21:y:2016:i:3:d:10.1057_s41264-016-0005-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.