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We are who we are: Incorporation of individual culture in customer satisfaction models

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Abstract

Despite the increasing recognition that cultural values have a major impact on consumer behavior, few studies have investigated the effect of individual culture on customer satisfaction in the global banking sector. This study designs a model of customer satisfaction that incorporates Uncertainty Avoidance (UA), and tests it among a sample of 227 Arab customers in the UAE banking sector through structural equation modeling using LISREL. Arab customers are reported to have a high UA, and it would thus be pertinent to determine how this cultural trait affects their consumer satisfaction. It was determined that perceived value and UA are direct antecedents of corporate reputation that in turn has a strong effect on satisfaction. Unexpectedly, service quality was not found to affect satisfaction. Various theoretical and managerial implications arising from the study findings are discussed, as well as potential avenues for further research in this important area.

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Author information

Authors and Affiliations

  1. Management and Marketing, HBMSU, DIAC, Dubai, 71400, UAE

    Sanjai K Parahoo, Ahmed Al-Nakeeb & Ismail Onagun

Authors
  1. Sanjai K Parahoo
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  2. Ahmed Al-Nakeeb
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  3. Ismail Onagun
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Additional information

2received his education in the United Kingdom and holds a PhD in Quality Management. He focused his research work on the areas of Quality Management and Marketing. Currently working as an Assistant Professor at Hamdan Bin Mohammed Smart University.

APPENDIX

APPENDIX

Measurement items

Items rated on a scale ranging from 1 (strongly disagree) to 7 (strongly agree):

Quality

  • The staff at my bank provides me with fast and efficient services

  • My bank has convenient operating hours

  • My bank has convenient processes for transfer of funds and making payments

  • My bank provides me with easy to use and convenient online banking services

Perceived value

  • It is easy to get financing/loans at my bank

  • My bank card provides me with attractive rewards and privileges

  • I rarely receive unsolicited sales calls from my bank

Uncertainty avoidance

  • It is important to have instructions spelled out in detail

  • It is important to closely follow instructions and procedures

  • It is normal to be afraid of unclear situations

  • It is normal to avoid taking unknown risks

Reputation

  • My bank is well known in the market

  • My bank has environmentally friendly practices

  • My bank is actively involved in supporting the community

Satisfaction

  • I am satisfied with the services provided by my bank

  • I am generally pleased with my bank’s services

  • My bank exceeds my expectations

  • My bank meets my banking needs

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Parahoo, S., Al-Nakeeb, A. & Onagun, I. We are who we are: Incorporation of individual culture in customer satisfaction models. J Financ Serv Mark 20, 220–230 (2015). https://doi.org/10.1057/fsm.2015.15

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  • DOI: https://doi.org/10.1057/fsm.2015.15

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