Title: Personal touch or convenient tech? An investigation of customer channel preferences in retail banking

Authors: Madhavi Ayyagari; Sanjai K. Parahoo

Addresses: Murdoch University, Dubai, UAE ' Business School, Hamdan Bin Mohammed Smart University, Dubai, UAE

Abstract: In a highly competitive sector like banking, services are provided through multiple channels (e.g. branch services, online, smartphones, and ATMs) to meet varied customer preferences. Despite the recognised importance of these different channels, few studies have investigated the relative contribution each channel makes to customer satisfaction and to relationship continuity. The objective of the present exploratory study is therefore to examine the relative impact of three factors (ATM, face-to-face interaction and tangibles) as independent constructs on customer satisfaction and customer relationship continuity intention. Using a sample of 152 banking customers in Dubai, the study unearthed an important finding that interaction with the customer service representatives (CSRs) was the key determinant of customer satisfaction and continuity intention, while ATMs and branch tangibles did not have a significant effect on these two outcomes. Therefore, the role of CSR is paramount for banks in satisfying and retaining customers. Implications for theory and practice are discussed, and directions for further research are charted out.

Keywords: channel preferences; retail banking; UAE; United Arab Emirates Banks; ATM; customer satisfaction; face-to-face interaction; tangibles; customer continuity intention; service quality; SERVQUAL; SERVPERF; service technology; SST; service management; motivators; hygiene factors.

DOI: 10.1504/IJFSM.2018.092591

International Journal of Financial Services Management, 2018 Vol.9 No.2, pp.103 - 118

Available online: 22 Jun 2018 *

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