The role of switching cost in the e-service recovery framework among banking customers

Title

The role of switching cost in the e-service recovery framework among banking customers

Creator

Jose A.; Mathew S.; G R.; Chacko D.P.; Thomas A.K.

Description

Purpose: The emergence of tech-driven initiatives in retail banking has created a vast spectrum of system-related service failures; hence, e-service recovery quality is of prime importance to banks to ensure e-service recovery satisfaction. However, e-service satisfaction is dependent on the ease of moving from one service provider to the other; thus, switching costs assume great significance. This study aims to probe the moderating role of switching cost on e-service recovery satisfaction by exploring e-service recovery quality antecedents. Design/methodology/approach: A measurement model is suggested in the contextual settings of the Indian banking scenario and is estimated using structural equation modeling. Responses from 399 e-banking customers, who had experienced a service failure, were sought using a five-point Likert scale. Findings: The result affirms that recovery expectation is the most significant predictor of e-service recovery satisfaction, and that switching cost moderates the relation between e-service recovery quality and e-service recovery satisfaction. Practical implications: The study highlights the high relevance of switching costs in the e-banking context and emphasizes investment in marketing strategies and campaigns to do away with switching intentions. It also highlights the relevance of recovery expectations as an antecedent of e-service recovery quality and thus stresses the need to satisfactorily address the same in the e-service recovery process. Originality/value: This study contributes to the e-service recovery satisfaction literature in the banking context by empirically validating the moderating role of switching cost. It also identifies the critical antecedents of banking e-service recovery quality. 2021, Emerald Publishing Limited.

Source

International Journal of Quality and Service Sciences, Vol-14, No. 1, pp. 86-109.

Date

2022-01-01

Publisher

Emerald Group Holdings Ltd.

Subject

Bank services; Banking industry; E-service; E-service failure; E-service recovery quality; E-service recovery satisfaction; ESQ; Service recovery; Switching; Switching cost

Coverage

Jose A., Department of Professional Studies, Christ University, Bangalore, India; Mathew S., School of Business and Management, Christ University, Bangalore, India; G R., Department of Management, Amrita Vishwa Vidyapeetham, Kochi, India; Chacko D.P., Instructional Designer, Toyota Motor Corporation, Toyota, Australia; Thomas A.K., Department of Marketing, St. Josephs Business School, Pala, India

Rights

Restricted Access

Relation

ISSN: 1756669X

Format

Online

Language

English

Type

Article

Identifier

https://doi.org/10.1108/IJQSS-11-2020-0172

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