The image and customer well-being stems from banking activities

Author:

Eshaghi Mohammad Sadegh,Ranjbarian Bahram,Ansari Azarnoush

Abstract

Purpose This study, by applying psychological life-space theory, aims to identify the role of banking activities in customers’ well-being. Design/methodology/approach Following a quantitative approach, a two-stage method of structural equation modelling was used to test the hypotheses. Through a close-ended questionnaire, data were obtained from banks’ customers. A partial least squares regression was used to test both inner and outer models. Sample power software was used to calculate the minimum sample size of the study. Findings A new variable namely customer well-being stems from banking activities identified which is assumed to be influenced by bank’s image, perceived value and aroused emotions. It was tested that word of mouth and bank’s marketing activities have impacts on the bank’s image. Moreover, by differentiating the images of different entities, it was proposed that comparative images could be considered as moderating variable. Furthermore, the mediating role of perceived value and aroused emotions are documented. Originality/value Applying psychological life-space theory, a new concept that is not limited to the financial aspect of well-being presented and tested. Although researchers in different filed of studies applied this theory, this is the first time that a study presents nominal and operational definitions of the role of banks in customers’ well-being. Moreover, for the first time in the bank marketing literature, images of different entities including consumer’s image, image of bank’s employee and image of bank’s competitors were separated and their causal relations were statistically tested.

Publisher

Emerald

Subject

Marketing

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