Boosting Financial Service Quality: The Power of Innovation Strategy in Algerian Context

Objective Innovation is decisive as it drives the efficiency, security and convenience of banking operations. Ultimately, this will reshape the manner in which financial institutions interact with their consumers. Marketing strategies, and innovation approaches, are critical in improving quality in a competitive environment. This investigation analyses the influence of innovations extended mix marketing elements on the quality of financial services in Algeria. Methodology This study focuses on innovative banking research. It aimed to identify measures of financial mix marketing innovation that affect the quality of service using structural equation modelling (SEM) with a Partial Least Squares (PLS) approach. Data were collected from a convenience sample of 584 respondents to evaluate the properties of the measurement tool and validate the seven hypotheses that were formulated and tested. Findings The study findings reveal that the dimensions of “Mix Marketing Innovation” positively impact financial service quality, except for two specific aspects. The rejection of the two hypotheses indicates no direct relationship between “Price and Promotion Innovation” and “Service Quality” in the Algerian financial industry. Value Added The study provides a fairly stable model and a framework for other industries and regions to assess the impact of marketing mix innovations on the perception of financial service quality. Similarly, professionals can utilise the results to inspire the development of an innovative and coherent marketing mix that enhances service quality. Additionally, the methodology can be adapted for use in other research studies, covering all or some of the variables in different contexts. Recommendations Further research could examine the impact of external factors, such as regulatory changes and economic conditions, on the relationship between marketing mix innovations and service quality, as well as explore the effect of cultural and psychological factors, where studies could provide deeper insights and interpretations regarding customer perceptions and experiences.