Designing a satisfaction model for service re-creation with an emphasis on brand loyalty in the banking industry; A case study of the Bank of Agriculture

Document Type : Research Paper

Authors

1 Department of Business Management, Roudehen Branch, Islamic Azad University, Roudehen, Iran

2 Department of Business Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran

3 Department of Management and Accounting, Roudehen Branch, Islamic Azad University, Roudehen, Iran

10.22075/ijnaa.2023.31766.4711

Abstract

The current research was carried out with the aim of identifying the components of satisfaction from service re-creation with an emphasis on brand loyalty in the banking industry and is in the scope of developmental research. A mixed method was used in this research. The statistical population in the qualitative section is the experts and managers of Iran's banking industry, of which 15 people were selected in a non-random way. The statistical population in the quantitative part includes all customers of the Agricultural Bank in Tehran (unlimited population). Based on this, a sample of 384 people is selected using Morgan's table. The main tool for data collection is a semi-structured in-depth interview and a researcher-made questionnaire. Qualitative data analysis was done with the method of data base theory using MAXQDA software and in the quantitative part with partial least squares method. Based on the paradigm model obtained in this research, the components related to service recovery satisfaction in six categories of causal factors (customer-oriented, brand image, communication, evaluation of correct performance and growth and development of services), background conditions (brand culture), central phenomenon (satisfaction with re-creation), strategies (organization strategy, marketing, and advertising), intervening conditions (customer anger and environmental factors) and consequences (brand loyalty, brand trust, customer satisfaction and profit increase) were identified. The results of the quantitative part of the research showed that the model proposed in this research is valid. Based on the obtained results, it can be concluded that the level of satisfaction and loyalty of banking customers can be improved by focusing on the components identified in relation to service regeneration.

Keywords

[1] S. Akhtar and J. Barlow, Forgiveness therapy for the promotion of mental well-being: A systematic review and meta-analysis, Trauma Violence Abuse 19 (2018), no. 1, 107–122.
[2] S.A. Alenazi, Determinants of pre-service failure satisfaction and post-service recovery satisfaction and their impact on repurchase and word-of-mouth intentions, Calitatea 182 (2021), no. 22, 88–94.
[3] G.K. Amoako, L.D. Caesar, R.K. Dzogbenuku, and G.A. Bonsu, Service recovery performance and repurchase intentions: the mediation effect of service quality at KFC, J. Hospital. Tourism Insights 6 (2023), no. 1, 110–130.
[4] S. Azizi, P. Maloul, and S. Eivazinezhad, The effect of recovery service and personal failures on customer satisfaction in health services (Case study: Dental industry), New Market. Res. J. 11 (2021), no. 3, 210–197. [In Persian]
[5] B.J. Babin, W. Zhuang, and A. Borges, Managing service recovery experience: Effects of the forgiveness for older consumers, J. Retail. Consum. Serv. 58 (2021), no. 3, 102222.
[6] R.R. Cai, L. Lu, and D. Gursoy, Effect of disruptive customer behaviors on others’ overall service experience: An appraisal theory perspective, Tourism Manag. 69 (2018), no. 5, 330–344.
[7] Y.Y. Chen and I.J. Wu, Understanding the role of webcare in the online buying service recovery context, Enterprise Inf. Syst. 17 (2021), no. 1, 33–49.
[8] L. Cui, S. He, H. Deng, and X. Wang, Sustaining customer loyalty of fresh food e-tailers: an empirical study in China, Asia Pacific J. Market. Logist. 35 (2023), no. 3, 669–686.
[9] A.M. Elbaz, M. Soliman, A. Al-Alawi, B.S. Al-Romeedy, and M. Mekawy, Customer responses to airline companies’ service failure and recovery strategies: the moderating role of service failure habit, Tourism Rev. 78 (2023), no. 1, 1–17.
[10] L.J. Harrison-Walker, The critical role of customer forgiveness in successful service recovery, J. Bus. Res. 95 (2019), no. 3, 376–391.
[11] A. Honora, W.H. Chih, and K.Y. Wang, Managing social media recovery: The important role of service recovery transparency in retaining customers, J. Retail. Consumer Serv. 64 (2022), no. 4, 102814.
[12] M. Hossain, N. Jahan, and M. Kim, Effects of service justice, quality, social influence and corporate image on service satisfaction and customer loyalty: moderating effect of bank ownership, Sustainability 13 (2021), no. 13, 7404.
[13] Y. Huang, D. Gursoy, M. Zhang, R. Nunkoo, and S. Shi, Interactivity in online chat: Conversational cues and visual cues in the service recovery process, Int. J. Inf. Manag. 60 (2021), no. 11, 102360.
[14] A. Jose, S. Mathew, G. Rejikumar, D.P. Chacko, and A.K. Thomas, The role of switching cost in the e-service recovery framework among banking customers, Int. J. Qual. Serv. Sci. 14 (2021), no. 1, 86-109.
[15] M. Khamitov, Y. Gregoire, and A.A. Suri, Systematic review of brand transgression, service failure recovery and product-harm crisis: integration and guiding insights, J. Acad. Market. Sci. 48 (2020), no. 9, 519–542.
[16] J.H. Kim, W. Du, and H. Youn, Revisiting the service recovery paradox in the restaurant industry, Asia Pacific J. Market. Logist. 34 (2022), no. 3, 437–453.
[17] H. Nadiri, Diagnosing the impact of retail bank customers’ perceived justice on their service recovery satisfaction and postpurchase behaviours: an empirical study in financial centre of Middle East, Econ. Res.-Ekon. Istra. 29 (2016), no. 1, 193–216.
[18] P. Nankali, F. Rakhshan, and M.R. Alirezaee, Evaluating the role of bank absentee services in customer loyalty using data envelopment analysis, J. Decis. Oper. Res. 7 (2022), no. 3, 533–542.
[19] C.N. Osakwe and T.O. Yusuf, CSR: A roadmap towards customer loyalty, Total Qual. Manag. Bus. Excel. 32 (2021), no. 13-14, 1424–1440.
[20] A. Rifi and R.B. Mostafa, Brand credibility and customer-based brand equity: A service recovery perspective, J. Financ. Serv. Market. 27 (2021), no. 6, 1–16.
[21] I. Santouridis and P. Trivellas, Investigating the impact of service quality and customer satisfaction on customer loyalty in mobile telephony in Greece, TQM J. 22 (2011), no. 3, 330–343.
[22] A.L. Strauss and J.M. Corbin, Basics of Qualitative Research: Techniques and Procedures for Developing Grounded Theory (2nd ed), Los Angeles, CA: Sage, 1998.
[23] K. Weber and C.H. Hsu, Beyond a single firm and internal focus service failure/recovery: Multiple providers and external service recoveries, J. Travel Res. 61 (2022), no. 1, 50–63.
[24] J. Wei, S. Zhu, Z. Hou, H. Dong, and J. Li, Research on the influence mechanism of emotional intelligence and psychological empowerment on customers’ repurchase intention under the situation of online shopping service recovery, Current Psycho. 42 (2022), no. 21, 1–17.
[25] D. Zhang, Y. Li, Y. Li, and Z. Shen, Service failure risk assessment and service improvement of self-service electric vehicle, Sustainability 14 (2022), no. 7, 3723.

Articles in Press, Corrected Proof
Available Online from 08 February 2024
  • Receive Date: 11 July 2023
  • Revise Date: 27 September 2023
  • Accept Date: 13 October 2023