Title: Asset size and its influence: a study in the banking institutions in Malaysia

Authors: Ding Hooi Ting

Addresses: Department of Marketing, School of Business, Monash University Malaysia, No. 2, Jalan Kolej, Bandar Sunway, 46150 Petaling Jaya, Selangor, Malaysia

Abstract: Malaysia has seen the merging of banks in 1999. The aim is to make the banks stronger and more stable, especially in terms of asset size. The merge will also able to give competitive advantage to the banking institutions (anchor banks) during the AFTA. Most studies proved that there is a positive relationship between satisfaction and subsequent behaviour after purchase. This paper looks at the underlying factor (moderator-asset size) that might offset the importance of satisfaction towards subsequent behaviour after making a purchase in banking institutions in Malaysia. Simple regression analysis was carried out to test the first relationship and the hierarchical moderated regression analysis to test the moderating effect. Based on 1,025 questionnaires gathered from bank customers all over Malaysia by using a snowball sampling method, it is found that there is a positive relationship between satisfaction and re-purchase intention. The results also support the moderating role of the asset size on satisfaction and re-purchase intention on high level of asset size.

Keywords: customer satisfaction; re-purchase intentions; asset size; moderator; banking institutions; Malaysia; bank mergers; financial services.

DOI: 10.1504/IJFSM.2006.009636

International Journal of Financial Services Management, 2006 Vol.1 No.2/3, pp.363 - 379

Available online: 03 May 2006 *

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