News of the finance

BAbstract:/BBR/ BPurpose/B – Due to the importance of understanding what circumstances make customer recovery programmes successful, this paper aims to study the effects of different cognitive evaluations (disconfirmation of expectations and perceived justice) and affective responses (positive and negative emotions) on satisfaction with complaint handling. BDesign/methodology/approach/B – The sample used in this study consists of 679 subjects who, over the last six months, had experienced service failures and had afterwards complained. The data were collected via personal interviews using a structured survey. BFindings/B – The results of the study support the model and highlight the importance of the emotions experienced as a result of the complaint handling. Although these emotions have been underrepresented in the service recovery literature, our investigation shows that these emotions not only have an independent effect on customer satisfaction, after accounting for the effects of the cognitive evaluations of complaint handling, but also play a mediating role in the relationship between these cognitive variables and satisfaction. BResearch limitations/implications/B – This study examines only one service context; consequently, caution is needed when generalizing the results. BPractical implications/B – Given the findings in this paper, identifying customers' emotions can enable service organizations to know their perceptions of the recovery and, hence, adapt service recovery strategies adequately. BOriginality/value/B – This study incorporates the disconfirmation of expectations paradigm and the dimension of informational justice into the existing models of cognitive and affective antecedents of satisfaction with complaint handling. Furthermore, this study is based on the analysis of real service failures and recovery strategies.

BAbstract:/BBR/ BPurpose/B – The purpose of this paper is to illustrate the effect of including the customer as a resource in efficiency measurement. Variations in counting the customer illustrate the different impacts on efficiency between a transactional and a relational approach to bank branch marketing. BDesign/methodology/approach/B – The paper uses data envelopment analysis to analyse the efficiency of the branch network under consideration. This technique, while well established in the bank branch efficiency literature, is used here to gain insight into how relationship and transactional paradigms are affecting performance. BFindings/B – Although the average profile of the efficiency scores was similar, the scores of the individual branches differed greatly depending on how customers were counted. Some branches then can be typified as relationship oriented while others as transactions oriented bearing in mind that all branches have both remits. BPractical implications/B – Future research in efficiency measurement should include customers as a resource of the bank given the importance of them for the activity of co-production. Careful consideration is required however of the method of accounting for these customers bearing in mind that different conceptualisations may significantly affect the efficiency score of the individual branches. BOriginality/value/B – This paper sheds light on what is happening at branch level in a large network in the UK in terms of how transactions and relationship marketing approaches are affecting efficiency scores and the objectives of the branch. It also answers a call for research into organisations that simultaneously use relationship and transactions marketing.

BAbstract:/BBR/ BPurpose/B – The purpose of this paper is to offer an integrated approach for understanding the relations among the theoretical and operational antecedents of consumer involvement in the context of financial products. The theoretical antecedents of involvement have been conceptualized as the consumer's personal profile, purchase situation, and target product; the operational antecedent includes the purchase availability manipulation. BDesign/methodology/approach/B – The research is based on a field study among private customers of a leading financial institute and on two experimental designs within lab settings. The independent variables include the theoretical and operational antecedents and the dependent measure comprises the involvement measure. BFindings/B – The findings emphasize that the theoretical antecedents constitute an effective manipulation of involvement, whereas the operational antecedent has only limited effect. BPractical implications/B – Financial managers should consider the type of financial service, distribution channel, social context and advertising medium, in conjunction with the consumer's profile, to increase the overall involvement. BOriginality/value/B – The research provides a new view at the way predictions of involvement are formed within the financial context. This view is enabled by including the antecedents of product involvement along with the manipulation of product availability. When these components are considered jointly, a richer set of predictions can be offered than previously conceptualized. To this end, the research calls for a more comprehensive approach for manipulating involvement that bases its activation on the theoretical antecedents.

BAbstract:/BBR/ BPurpose/B – This exploratory study seeks to explore the link between the choices of payment mode to customer satisfaction. It examines the Austrian market in relation to its choice and usage of debit cards versus credit cards and its impact on customer satisfaction and loyalty. Furthermore, the study aims to identify the key drivers of customer satisfaction for these two modes of electronic payment. BDesign/methodology/approach/B – A structured questionnaire was administered in person to 360 Austrian bank customers. These customers were selected using quota sampling based on Austrian census data for a particular Austrian province. However, while the quota sampling was used to determine the categories, selection of the actual respondents was done through systematic sampling. This ensured that the sample was representative of the population of that Austrian province who had credit and debit cards. One group, women who were 65 and older, were not considered as there were relatively few women in this age range who had debit and credit cards. BFindings/B – Five hypotheses were proposed. Four of the five hypotheses were supported while one, ITH4/IT, had partial support. Essentially, the results indicate that a person's preference for a particular payment method is dependent on his/her personal characteristics. Additionally, the payment method's features and characteristics influenced its desirability and acceptance. Furthermore, a person's expectations had an impact on his/her attitude toward the payment method. The study also found that positive expectations, performance, and desires led to customer satisfaction. Customer satisfaction, in turn, leads to a higher degree of intent to use the payment method and higher degree of intent to recommend the payment method. These results are consistent with the literature on customer satisfaction that identifies expectations, performance and desires as the drivers of customer satisfaction. BOriginality/value/B – Multiple payment modes have emerged but there has been scant attention paid to the effects of payment modes on customer behavior and by extension, customer satisfaction and loyalty. This paper addresses these issues.

BAbstract:/BBR/ BPurpose/B – Numerous empirical studies on internet banking services (IBS) adoption have focused either on perceived risk or trust; but rarely have they combined these concepts and used empirical evidence to investigate the relationship. This study aims to contribute to this field by looking simultaneously at the roles of trust and perceived risk on consumers' IBS usage intention. BDesign/methodology/approach/B – An integrated model explaining the interrelationships between trust, perceived risk and usage intention is developed. The research was conducted on a sample of 432 young Chinese consumers who can be classified as IBS early adopters. The quantitative findings are enhanced by the analysis of extensive qualitative data providing unique insights into this market. BFindings/B – Results indicate that there is a significant relationship between trust and perceived risk and that both are crucial in explaining the internet banking usage intention. Furthermore, trust in the bank is fundamental not only to reducing risk perceptions of IBS in general but also to building trust in the banks' competence in terms of IBS activity. BOriginality/value/B – This research adds value to existing studies of online banking, which largely focus on trust and risk separately. In addition, it enables us to contribute to the current literature on the emerging Chinese IBS market, which is largely under-researched.

BAbstract:/BBR/ BPurpose/B – The purpose of this paper is to examine the role of situation normality cues (online attributes of the e-banking web site) and structural assurance cues (size and reputation of the bank, and quality of traditional service at the branch) in a consumer's evaluation of the trustworthiness of e-banking and subsequent adoption behaviour. BDesign/methodology/approach/B – Data were collected from a survey and a usable sample of 202 was obtained. Hierarchical moderated regression analysis was used to test the model. BFindings/B – Traditional service quality builds customer trust in the e-banking service. The size and reputation of the bank were found to provide structural assurance to the customer but not in the absence of traditional service quality. Web site features that give customers confidence are significant situation normality cues. BPractical implications/B – Bank managers have to realise that good service at the branch is a necessary condition for the promotion of e-banking. They cannot rely on bank size and reputation to “sell” e-banking. BOriginality/value/B – This is the first study that examines how traditional service quality and a bank's size and reputation influences trust in e-banking.

BAbstract:/BBR/ BPurpose/B – The purpose of this paper is to study the many manifestations of trust in the wealth management context in Finland. This empirical paper examines and contrasts how trust is perceived by financial experts and consumers in wealth management in general, and in the investment context, in particular. BDesign/methodology/approach/B – Qualitative methods, focus group discussions and interviews were employed. BFindings/B – Financial experts and consumers emphasised different facets of trust. The level of trust towards financial service providers and financial advisors, and the level of involvement in investing served to differentiate the consumers into four distinct groups. These are presented and discussed. BResearch limitations/implications/B – Although the methods utilised were purely qualitative and the study was limited to Finland, the results offer interesting and new scientific knowledge about perceived trust, and how it can be used in market segmentation and developing customer service. BPractical implications/B – The four quadrant matrix can assist financial companies in building customer relationships and in improving customer service. BOriginality/value/B – Qualitative research provides insights into consumers' thoughts that are difficult to obtain with quantitative data gathering and analysis. In this study, consumers expressed their opinions and thoughts in their own words. Furthermore, the dyadic comparison of opinions of consumers with experts' views about consumers' motives and behaviour contributed to a deeper understanding of the relationship between consumers and financial service providers.

BAbstract:/BBR/ BPurpose/B – The purpose of this study is to identify the underlying dimensions of trustworthiness of financial service providers in the Indian retail banking sector and to model trustworthiness as a set of second-order factors. The study replicates and extends the work of Ennew and Sekhon in the Indian context. BDesign/methodology/approach/B – Using the trustworthiness scale developed by Ennew and Sekhon this study identifies six first-order factors of trustworthiness for retail bankers in India using exploratory and confirmatory factor analysis. Then the study modeled trustworthiness as a set of three second-order factors using second-order confirmatory factor analysis. BFindings/B – The first-order factors obtained for trustworthiness of retail bankers are customer orientation, integrity and honesty, communication and similarity, shared values, expertise, and ability and consistency. The second-order confirmatory factor analysis resulted in three higher order factors namely, competency, openness and benevolence. BPractical implications/B – The various dimensions of trustworthiness should be viewed as levers for improving a bank's trustworthiness in the minds of its current customers. At the same time, these dimensions will help them in reflecting an image of trustworthiness in the minds of its potential customers. Establishment of trustworthiness as an element of corporate image will provide competitive advantage to the service firms and improve their financial performance. BOriginality/value/B – The research tests for the reliability and validity of the trustworthiness scale of Ennew and Sekhon. This study provides a window to the dimensions on which retail bank customers in an emerging economy such as India perceive a retail bank's trustworthiness. Furthermore, this study is an attempt to model trustworthiness as a set of second-order factors.

BAbstract:/BBR/ BPurpose/B – Elaborating on earlier research by Vrechopoulos ITet al./IT, this paper aims to investigate web banking store layout effects on user-consumer behaviour and to report on a laboratory experimental investigation into user acceptance of three different layout types. BDesign/methodology/approach/B – A web banking store was developed in three versions equal to the number of the alternative layouts manipulated by the laboratory experimental design. Two layout types were transformed from conventional banking and one type was designed by incorporating users' preferences and suggestions. The relationships in technology acceptance model (TAM) in the three treatments are tested separately, and then the subjects' evaluations on TAM constructs are compared. BFindings/B – The findings imply that store layout affects online consumer behaviour, confirming the findings of Vrechopoulos ITet al./IT in a different sector. The study also confirms the TAM relationships in all treatments and indicates that layout has an effect on user acceptance of web banking in terms of TAM constructs. BResearch limitations/implications/B – This study confirms the available knowledge regarding a store layout's influencing role on consumer behaviour in the context of web commerce. BPractical implications/B – Direct managerial implications for web banking are provided through the design of the “improved future” layout, which is depicted in the form of an abstract interface design. BOriginality/value/B – The paper adopts an innovative conclusive causal research design towards testing the research hypotheses. To that end, an experimental application was developed in the laboratory and the research hypotheses were “packed-up” with references from different disciplines (i.e. marketing and information systems) providing through that an interdisciplinary nature on the present study.

BAbstract:/BBR/ BPurpose/B – The purpose of this article is to present data on the situation for small businesses during the current recession in terms of financial services support. BDesign/methodology/approach/B – A panel of members of the Forum of Private Business (FPB) were surveyed, seeking information about the services and support of financial services. BFindings/B – Whilst some respondents reported a slight improvement in support, the number of insolvencies continues to rise. BResearch limitations/implications/B – The panel represents only members of the FPB. BPractical implications/B – The data are very recent and report the current experiences of small businesses with messages to government and the financial services sector of a lack of support for small businesses. BOriginality/value/B – Small businesses are hard to access and the article contributes to both policy and practice in the support of an important commercial sector.