Self-Service Technology Service Quality and Brand Loyalty in Zimbabwe’s Banking Sector: A SEM Approach
Keywords:Self-Service Technology; Service Quality; Satisfaction; Behaviour Intention; Loyalty
Purpose – This article examined the relationship between self-service technology service quality and brand loyalty in Zimbabwe`s banking sector with customer satisfaction and behaviour intentions playing the mediating role. The main objective was to develop a path analysis model for the banking industry in Zimbabwe. Approach – The study followed a deductive approach with an online survey used to collect primary data from more than 110 bank customers. The PLS-SEM algorithm was used to empirically test the path analysis model. Findings – The construct measures were confirmed reliable and valid with structural model showing goodness of fit based on the R2, Q2, SRMR, and path significance. The results further confirmed hypothesis H1, H2, H3, H4, and H7 whilst rejecting H5 and H6. Practical implications – Self-service technologies have proven to be a critical enhancer of brand loyalty in the banking sector. The ‘FinTech’ industry has gone under a critical test due to COVID-19 pandemic that has seen global restrictions nearly paralyzing a number of sectors. Technology developers, policymakers, researchers, and regulators will have a better understanding of self-service technologies and their impact on brand loyalty in the service industry. Originality/value – Literature has shown some knowledge gaps in this field especially in Zimbabwe where the ‘FinTech’ industry is still in its infancy stages.
Ajzen, I. (1991). “The theory of planned behavior,” Organizational Behavior and Human Decision Process, Vol. 50(2), pp. 179–211. https://doi.org/10.1080/08870446.2011.613995.
Arifin, S. R. (2018). Ethical Considerations in Qualitative Study. [pdf] Available at: https://www.researchgate.net/profile/Siti-Roshaidai-Arifin/publication/328019725_Ethical_Considerations_in_Qualitative_Study/links/5bc535e4a6fdcc03c788c584/Ethical-Considerations-in-Qualitative-Study.pdf [Accessed 01 November. 2021].
Avkiran, N. K. (2018). Rise of the Partial Least Squares Structural Equation Modeling: An Application in Banking. In N. K. Avkiran, C. M. Ringle (Eds.), Partial Least Squares Structural Equation Modeling (pp. 1-29). International Series in Operations Research & Management Science 267. https://doi.org/10.1007/978-3-319-71691-6_1.
Bacon, L. D. (1999). Using LISREL and PLS to Measure Customer Satisfaction, Sawtooth Software Conference Proceedings, La Jolla, California, Feb 2-5, 305-306.
Bagozzi, R. P. and Yi, Y. (1988). “On the evaluation of structural equation models,” Journal of the Academy of Marketing Science, Vol. 16(1), pp. 74–94.
Barrow, J. M., Brannan, G. D. and Khandar, P. B. (2021). Research Ethics. [online] Available at: https://www.ncbi.mlm.nih.gov/books/NBK459281/ [Accessed 01 Novemebr. 2021].
Bitner, M., Ostrom, A., and Meuter, M. (2002). “Implementing Successful Self-Service Technologies,” Academy of Management Perspectives, Vol. 16. DOI: 10.5465/AME.2002.8951333.
Bloemer, J., Odekerken-Schroder, G., and Kestens, L. (2003). “The impact of need for social affiliation and consumer relationship proneness on behavioural intentions: an empirical study in a hairdresser's context,” Journal of Retailing and Consumer Services, Vol. 10, pp. 231-240.
Bogicevic, V., Bujisic, M., Bilgihan, A., Yang, W., and Cobanoglu, C. (2017). “The impact of traveler-focused airport technology on traveler satisfaction,” Technological Forecasting and Social Change, 123(Supplement C), pp. 351–361. https://doi.org/10.1016/j.techfore.2017.03.038.
Bourgeois, N. (2011). “An Epistemology of Leadership Perspective Examining the Fit for a Critical Pragmatic Approach,” Scholar-Practitioner Quarterly, Vol. 5 (4), pp. 371-384.
Burton, S., Sheather, S., and Roberts, J. (2003). “Reality or perception? The effect of actual and perceived performance on satisfaction and behavioral intention,” Journal of Service Research, Vol. 5(4), pp. 292–302. https://doi.org/10.1177/1094670503005004002.
Chen, P-T., and Hu, H-H. (2010). “The effect of relational benefits on perceived value in relation to customer loyalty: An empirical study in the Australian coffee outlets industry,” International Journal of Hospitality Management, Vol. 29, pp. 405-412.
Collier, J. E., and Sherrell, D. L. (2010). “Examining the influence of control and convenience in a self-service setting,” Journal of the Academy of Marketing Science, Vol. 38(4), pp. 490–509. https://doi.org/10.1007/s11747-009-0179-4.
Cronin, J. J., Brady, M. K., and Hult, G. T. M. (2000). “Assessing the effects of quality, value, and customer satisfaction on consumer behavioral intentions in service environments,” Journal of Retailing, Vol. 76(2), pp. 193-218. DOI: https://doi.org/10.1016/S0022-4359(00)00028-2.
Cronin, J. J., Jr, and Taylor, S. A. (1992). “Measuring service quality: A reexamination and extension,” Journal of Marketing, Vol. 56(3), pp. 55–68. https://doi.org/10.2307/1252296.
Curran, J. M., Meuter, M. L., and Surprenant, C. F. (2003). “Intentions to use self-service technologies: A confluence of multiple attitudes,” Journal of Service Research, Vol. 5(3), pp. 209–224. https://doi.org/10.1177/1094670502238916.
Demirci Orel, F., and Kara, A. (2014). “Supermarket self-checkout service quality, customer satisfaction, and loyalty: Empirical evidence from an emerging market,” Journal of Retailing and Consumer Services, Vol. 21(2), pp. 118–129. https://doi.org/10.1016/j.jretconser.2013.07.002.
Demoulin, N. T., and Djelassi, S. (2016). “An integrated model of self-service technology (SST) usage in a retail context,” International Journal of Retail and Distribution Management, Vol. 44(5), pp. 540–559. https://doi.org/10.1108/IJRDM-08-2015-0122.
Deng, Z., Lu, Y., Wei, K.K., and Zhang, J. (2010). “Understanding customer satisfaction and loyalty: An empirical study of mobile instant messages in China,” International Journal of Information Management, Vol. 30, pp. 289-300.
Dick, A. S. and Basu, K. (1994). “Customer loyalty: Toward an integrated conceptual framework,” JAMS, Vol. 22, pp. 99–113. https://doi.org/10.1177/0092070394222001.
Falk, R. F. and Miller, N. B. (1992). A primer for soft modeling. University of Akron Press.
Fishbein, M. and Ajzen, I. (1975). Belief, attitude, intention, and behavior: An introduction to theory and research. Reading, MA: Addison-Wesley.
Fornell, C., Johnson, M. D., Anderson, E. W., Cha, J., and Bryant, B. E. (1996). “The American Customer Satisfaction Index: Nature, purpose, and findings,” Journal of Marketing, Vol. 60(4), pp, 7-18. https://doi.org/10.2307/1251898.
Ganguli, S., and Roy, S. K. (2011). “Generic technology-based service quality dimensions in banking: Impact on customer satisfaction and loyalty,” International Journal of Bank Marketing, Vol. 29(2), pp. 168–189. https://doi.org/10.1108/02652321111107648.
Garson, D. G (2016). Partial Least Squares: Regression and Structural Equation Models. North Carolina, NC: Statistical Associates Publishing.
Gefen, D. and Straub, D. (2005). “A practical guide to factorial validity using PLS-Graph: Tutorial and annotated example,” Communications of the Association for Information Systems, Vol. 16(1), pp. 91-109.
Geisser, S. (1974). “A predictive approach to the random effect model,” Biometrika, Vol. 61(1), pp. 101–107.
Gremler, D. D., and Brown, S. W. (1997). Towards a conceptual model of service loyalty. Paper presented at the Marketing Theory and Applications AMA Winter Educators’ Conference.
Haenlein, M. and Kaplan, A. M. (2004). “A beginner’s guide to partial least squares analysis,” Understanding Statistics, Vol. 3(4), pp. 283–297.
Hair, J. F., Celsi, M., Money, A. H., Samouel, P., and Page, M. J. (2016). Essentials of Business Research Methods (3rd Ed.). Armonk, NY: Sharpe.
Hair, J. F., Hult, G. T. M., Ringle, C. M., and Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (2nd Ed.). Los Angeles: Sage.
Henseler, J., Ringle, C. M., and Sarstedt, M. (2015). “A new criterion for assessing discriminant validity in variance-based structural equation modeling,” Journal of the Academy of Marketing Science, Vol. 43, pp. 115–135.
Hoyle, R. H. (1995). Structural Equation Modeling (Ed.). Thousand Oaks, CA.: SAGE Publications, Inc.
Hsieh, C.-T. (2005). “Implementing self-service technology to gain competitive advantages,” Communications of the IIMA, Vol. 5(1), p. 9.
Iqbal, M. S. Hassan, M. U., and Habibah, U. (2018). “Impact of self-service technology (SST) service quality on customer loyalty and behavioral intention: The mediating role of customer satisfaction,” Cogent Business and Management, Vol. 5, pp. 1-23. http://dx.doi.org/10.1080/23311975.2018.1423770.
Jeong, M. S., Cha, J. E., and Jang, D.-H. (2016). “Impact of the service quality of horseback riding experience on customer satisfaction and loyalty-In case of Jangsu horse riding experience course,” Journal of Korean Society of Rural Planning, Vol. 22(2), pp. 131–140. https://doi.org/10.7851/ksrp.
Kotler, P., and Keller, K.L. (2009). Marketing Management. 12th edition, Pearson Education Inc, Prentice Hall.
Kuo, Y-F., Wu, C-M., and Deng, W-J. (2009). “The relationships among service quality, perceived value, customer satisfaction, and post-purchase intention in mobile value-added services,” Computers in Human Behavior, Vol. 25, pp. 887-896.
LaBarbera, P. A., and Mazursky, D. (1983). “A longitudinal assessment of consumer satisfaction/ dissatisfaction: The dynamic aspect of the cognitive process,” Journal of Marketing Research, pp. 393–404. https://doi.org/10.2307/3151443.
Lee, J., Lee, J., and Feick, L. (2001). “The impact of switching costs on the customer satisfaction-loyalty link: Mobile phone service in France,” Journal of Services Marketing, Vol. 15(1), pp. 35–48. https://doi.org/10.1108/08876040110381463.
Lehtinen, U., and Lehtinen, J. R. (1991). “Two approaches to service quality dimensions,” Service Industries Journal, Vol. 11(3), pp. 287–303. https://doi.org/10.1080/02642069100000047.
Leung, L. S. K., and Matanda, M. J. (2013). “The impact of basic human needs on the use of retailing self-service technologies: A study of self-determination theory,” Journal of Retailing and Consumer Services, Vol. 20(6), pp. 549-559. https://doi.org/10.1016/j.jretconser.2013.06.003.
Lin, J.-S. C., and Hsieh, P.-L. (2006). “The role of technology readiness in customers’ perception and adoption of self-service technologies,” International Journal of Service Industry Management, Vol. 17(5), pp. 497–517. https://doi.org/10.1108/09564230610689795.
Lin, J.-S. C., and Hsieh, P.-L. (2007). “The influence of technology readiness on satisfaction and behavioral intentions toward self-service technologies,” Computers in Human Behavior, Vol. 23(3), pp. 1597–1615. https://doi.org/10.1016/j.chb.2005.07.006.
Lin, J.-S. C., and Hsieh, P.-L. (2011). “Assessing the self-service technology encounters: Development and validation of SSTQUAL Scale,” Journal of Retailing, Vol. 87(2), pp. 194–206. https://doi.org/10.1016/j.jretai.2011.02.006.
Liu, Z., Wang, X., and Lin, X. (2019). “Understanding Consumers’ Post-Adoption Behavior in Sharing Economy Services,” Journal of Computer Information Systems, Vol. 61(3), pp. 275-284. https://doi.org/10.1080/08874417.2019.1631132.
Marcoulides, G. A. and Saunders, C. (2006). “Editor’s Comments – PLS: A Silver Bullet?” MIS Quarterly, Vol. 30(2), pp. iii-ix.
Martins, C., Oliveira, T., and Popovič, A. (2014). “Understanding the Internet banking adoption: A unified theory of acceptance and use of technology and perceived risk application,” International Journal of Information Management, Vol. 34(1), pp. 1–13. https://doi.org/10.1016/j.ijinfomgt.2013.06.002.
Maune, A., Matanda, E. and Mundonde, J. (2021). “Financial Inclusion as an Intentional Behaviour in Zimbabwe,” Acta Universitatis Danubius. OEconomica, Vol. 17(4), pp. 177-211.
Meuter, M. L., Ostrom, A. L., Roundtree, R. I., and Bitner, M. J. (2000). “Self-service technologies: Understanding customer satisfaction with technology-based service encounters,” Journal of Marketing, Vol. 64(3), pp. 50–64. https://doi.org/10.1509/jmkg.184.108.40.20624.
Oliver, C. (1997). “Sustainable competitive advantage: Combining institutional and resource-based views,” Strategic Management Journal, pp. 697–713. https://doi.org/10.1002/(ISSN)1097-0266.
Palmatier, R., Dant, R., Grewal, D., and Evans, K. (2006). “Factors Influencing the Effectiveness of Relationship Marketing: A Meta-Analysis,” Journal of Marketing American Marketing Association, Vol. 70, pp. 136-153. DOI: 10.1509/jmkg.70.4.136.
Parasuraman, A., and Grewal, D. (2000). “The impact of technology on the quality-value-loyalty chain: A research agenda,” Journal of the Academy of Marketing Science, Vol. 28(1), pp. 168–174. https://doi.org/10.1177/0092070300281015.
Parasuraman, A., Zeithaml, V. A., and Berry, L. L. (1985). “A conceptual model of service quality and its implications for future research,” Journal of Marketing, Vol. 49(4), pp. 41–50. https://doi.org/10.2307/1251430.
Parasuraman, A., Zeithaml, V. A., and Berry, L. L. (1994). “Reassessment of expectations as a comparison standard in measuring service quality: Implications for further research,” The Journal of Marketing, Vol. 58(1), pp. 111–124. https://doi.org/10.2307/1252255.
Parker, C., and Mathews, B. P. (2001). “Customer satisfaction: Contrasting academic and consumers’ interpretations,” Marketing Intelligence and Planning, Vol. 19(1), pp. 38–44. https://doi.org/10.1108/02634500110363790.
Pearson, S. (1994). “How to achieve return on investment from customer loyalty–part 1,” Journal of Targeting, Measurement and Analysis for Marketing, Vol. 3(1), pp. 39–47.
Petter, S., Straub, D., and Rai, A. (2007). “Specifying formative constructs in information systems research,” MIS Quarterly, Vol. 31(4), pp. 623-656.
Radomir, L. and Wilson, A. (2018). Corporate Reputation: The Importance of Service Quality and Relationship Investment. In N.K. Avkiran, C.M. Ringle (Eds.), Partial Least Squares Structural Equation Modeling (pp. 77-123). International Series in Operations Research & Management Science 267. https://doi.org/10.1007/978-3-319-71691-6_4.
Reichheld, F. F., and Sasser, J. W. (1990). “Zero defections: Quality comes to services,” Harvard business review, Vol. 68(5), pp. 105–111.
Ringle, C. M., Wende, S., and Becker, J.-M. (2015). “SmartPLS3.” Boenningstedt: SmartPLS GmbH. Http://www.smartpls.com. Retrieved 08/12/2021.
Rust, R. T., and Zahorik, A. J. (1993). “Customer satisfaction, customer retention, and market share,” Journal of Retailing, Vol. 69(2), pp. 193–215. https://doi.org/10.1016/0022-4359(93)90003-2.
Shore, L., Tetrick, L., Lynch, P., and Barksdale, K. (2006). “Social and Economic Exchange: Construct Development and Validation,” Journal of Applied Social Psychology, Vol. 36, pp, 837-867. https://doi.org/10.1111/j.0021-9029.2006.00046.x.
Stone, M. (1974). “Cross-validatory choice and assessment of statistical predictions,” Journal of the Royal Statistical Society, Series B, Vol. 36(2), pp. 111–147.
Swan, J. E., and Combs, L. J. (1976). “Product performance and consumer satisfaction: A new concept,” Journal of Marketing, Vol. 40(2), pp. 25–33. https://doi.org/10.2307/1251003.
Tenenhaus, M., Vinzi, V. E., Chatelin, Y.-M., and Lauro, C. (2005). “PLS path modeling,” Computational Statistics and Data Analysis, Vol. 48, pp. 159–205.
Venkatesh, V., Thong, J. Y., and Xu, X. (2012). “Consumer acceptance and use of information technology: Extending the unified theory of acceptance and use of technology,” MIS Quarterly, Vol. 36(1), pp. 157–178.
Vesel, P., and Zabkar, V. (2009). “Managing customer loyalty through the mediating role of satisfaction in the DIY retail loyalty program,” Journal of Retailing and Consumer Services, Vol. 16, pp. 396-406.
Wang, Y-S., Wang, Y-M., Lin, H-H., and Tang, T-I. (2003). “Determinants of User Acceptance of Internet Banking: An Empirical Study,” International Journal of Service Industry Management, Vol. 14, pp. 501-519. https://doi.org/10.1108/09564230310500192.
Weijters, B., Rangarajan, D., Falk, T., and Schillewaert, N. (2007). “Determinants and outcomes of customers’ use of self-service technology in a retail setting,” Journal of Service Research, Vol. 10(1), pp. 3–21. https://doi.org/10.1177/1094670507302990.
Wong, K. K. (2010). “Handling small survey sample size and skewed dataset with partial least square path modeling,” Vue: The Magazine of the Marketing Research and Intelligence Association, November, pp. 20-23.
Wong, K. K. (2013). “Partial Least Squares Structural Equation Modeling (PLS-SEM) Techniques Using SmartPLS,” Marketing Bulletin, Vol. 24(1), pp. 1-32.
Wu, K.-W. (2011). “Customer loyalty explained by electronic recovery service quality: Implications of the customer relationship re-establishment for consumer electronics e-tailers,” Contemporary Management Research, Vol. 7(1), pp. 21.
Xu, X., Thong, J. Y., and Venkatesh, V. (2014). “Effects of ICT service innovation and complementary strategies on brand equity and customer loyalty in a consumer technology market,” Information Systems Research, Vol. 25(4), pp. 710–729. https://doi.org/10.1287/isre.2014.0540.
Yang, J., and Klassen, K. J. (2008). “How financial markets reflect the benefits of self-service technologies,” Journal of Enterprise Information Management, Vol. 21(5), pp. 448–467. https://doi.org/10.1108/17410390810904238.
Yang, Z. and Peterson, R. T. (2004). “Customer perceived value, satisfaction, and loyalty: The role of switching costs,” Psychology and Marketing, Vol. 21(10), pp. 799–822. doi:10.1002/mar.20030.
Copyright (c) 2022 Alexander Maune
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The author fully assumes the content originality and the holograph signature makes him responsible in case of trial.