Advertisement

Customer Experience and Its Marketing Outcomes in Financial Services: A Multivariate Approach

  • Swati Raina
  • Hardeep Chahal
  • Phillip Klaus
  • Kamani Dutta
Chapter

Abstract

The purpose of this paper is twofold: first, to validate the customer experience quality (EXQ) scale in Indian sector, across financial products in Indian settings. And second, to assess EXQ impact on the marketing outcomes, that is customer satisfaction, word-of-mouth, loyalty intentions and service value. The respondents comprised of customers of Jammu City, India, who have experienced one of the three services, that is Banking or Insurance or Investment from the public and private sectors. The customer experience quality scale is assessed through validity and reliability analysis assuring the validation of EXQ scale in Indian settings. It is validated as four-dimensional scale, that is peace of mind, moment of truth, outcome focus and product experience. Also, the findings suggest that all the four individual dimensions have positive and significant impact on the marketing outcomes. First, the study is based on three financial services such as banking, investment and insurance only, and for further research, it is suggested to adopt other services comprehensively to understand customer experience from their perspective. Secondly, the major limitation of the research is related to the presence of subjective responses of the customers with respect to customer experience constructs in the study. This study contributes to the extant marketing literature by validating the domain of consumer experience quality in financial service sector operating in emerging economies, that is India, and its impact on marketing outcomes.

Keywords

Customer experience Customer satisfaction Moment of truth Peace of mind 

References

  1. Adhikari, A., & Bhattacharya, S. (2015). Appraisal of literature on customer experience in tourism sector: Review and framework. Current Issues in Tourism, 19(4), 1–26.CrossRefGoogle Scholar
  2. Arnold, M. J., Kristy, E. R., Nicole, P., & Jason, E. L. (2005). Customer delight in a retail context: investigating delightful and terrible shopping experiences. Journal of Business Research, 58, 1132–1145.CrossRefGoogle Scholar
  3. Berry, L. L., Eilen, A. W., & Lewis, P. C. (2006). Services clues and customer assessment of the service experience: Lessons from marketing. Academy of Management Perspectives, 20(3), 43–57.CrossRefGoogle Scholar
  4. Berry, L. L., & Seltman, K. D. (2007). Building a strong services brand: Lessons from Mayo clinic. Business Horizons , 50, 199–209.CrossRefGoogle Scholar
  5. Biedenbach, G., & Marell, A. (2009). The impact of customer experience on brand equity in a business-to-business service setting. Journal of Brand Management, 17(6), 446–458.CrossRefGoogle Scholar
  6. Buttle, F., & Burton, J. (2002). Does service failure influence customer loyalty? Journal of Consumer Behavior, 1(3), 217–227.CrossRefGoogle Scholar
  7. Carbone, L. P., & Haeckel, S. H. (1994). Engineering customer experience. Marketing Management, 3(3), 8–19.Google Scholar
  8. Chen, A. C. H., Chang, Y. H., & Fan, F. C. (2008). An empirical investigation of the relationship among service quality expectations, actual experience and its gap toward satisfaction. Northeast Decision Sciences Institute Proceedings-March, 28–20.Google Scholar
  9. Chung, N., & Kwon, S. J. (2009). The effects of customers’ mobile experience and technical support on the intention to use mobile banking. Cyberpsychology and Behaviour, 12(5), 539–543.CrossRefGoogle Scholar
  10. Dabholkar, P. A., Thorpe, D. I., & Rentz, J.O. (1996). A measure of service quality for retail stories:Scale development and validation. Journal of the Academy of Marketing Science, 24(1), 3–16.CrossRefGoogle Scholar
  11. Ding, D. X., Yang, H., & Verma, R. (2011). Customer experience in online financial service—A study of behavioural intentions for techno ready market segments. Journal of Service Management, 22(3), 344–366.CrossRefGoogle Scholar
  12. Edvardsson, B. (2005). Service quality: Beyond cognitive assessment. Managing service quality,15(2), 127–31.CrossRefGoogle Scholar
  13. Frow, P., & Payne, S. A. (2007). Toward the perfect customer experience. Journal of Brand Management, 15(2), 89–101.CrossRefGoogle Scholar
  14. Geyskens, I., Steenkamp, J. -B. E. M., Scheer, L. K., & Kumar, N. (1996). The effects of trust and interdependence on relationship commitment: A transatlantic study. International Journal of Research in Marketing, 13(4), 303–317.CrossRefGoogle Scholar
  15. Gilmore, J. H., & Pine, B. J. (2002). Customer experience places: The new offering frontier. Strategy and Leadership, 30, 4–11.CrossRefGoogle Scholar
  16. Grace, D., & O”Cass, A. (2004). Examining service experiences and post-consumption evaluations. Journal of Services Marketing, 18(6), 450–461.CrossRefGoogle Scholar
  17. Haeckel, S. H., Lewis, P. C., & Berry, L. L. (2003). How to lead the customer experience. 12, 18–23.Google Scholar
  18. Helkkula, A. (2011). Characterizing the concept of service experience. Journal of Service Management, 22(3), 367–389.CrossRefGoogle Scholar
  19. Keiningham, T., Cooli, B., Andreasseen, T., & Aksoy, L. (2007). A longitudinal examination of Net Promoter and firm revenue growth. Journal of Marketing, 7, 139–151.Google Scholar
  20. Kim, S. H., Cha, J., Knutson, B. J., & Beck, J. A. (2011). Development and testing of the consumer experience index (CEI). Managing Service Quality, 21(2), 112–132.CrossRefGoogle Scholar
  21. Kim, K. H., Kim, S. K., Kim, D. Y., Kim, J. H., & Kang, S. H. (2008). Brand equity in hospital marketing. Journal of Business Research, 61, 75–82.CrossRefGoogle Scholar
  22. Klaus, P., & Maklan, S. (2011). Bridging the gap for destination extremes sports: a model of sports tourism customer experience. Journal of Marketing Management, 27, 1–24.CrossRefGoogle Scholar
  23. Klaus, P., & Maklan, S. (2012). EXQ: A multiple-scale for assessing service experience. Journal of Service Management, 23(1), 5–33.CrossRefGoogle Scholar
  24. Klaus, P., & Maklan, S. (2013). Towards a better measure of customer experience. International Journal of Market Research, 55(2), 227–246.CrossRefGoogle Scholar
  25. Knutson, B., Beck, J., Kim, S., & Cha, J. (2006). Identifying the dimensions of the experience constructs. Journal of Hospitality & Leisure Marketing, 15(3), 31–47.CrossRefGoogle Scholar
  26. Kumar, R. N., Kirking, D. M., Hass, S. L., Vinokur, A. D., Taylor, S. D., Atkinson, M. J., & Mckercher, P. L. (2007). The association of consumer expectations, experiences and satisfaction with newly prescribed medications. Quality Of Life Research, 16(7), 1127–1136.CrossRefGoogle Scholar
  27. Liljander, V. & Strandvik, T. (1997). Emotions in service satisfaction. International Journal of Service Industry Management, 8(2),148–69.CrossRefGoogle Scholar
  28. Meyer, C., & Schwager, A. (2007). Understanding customer experience. Harvard Business Review, 85(2), 16–26.Google Scholar
  29. Nagasawa, S. (2008). Customer experience management. The TQM Journal, 20(4), 312–323.CrossRefGoogle Scholar
  30. Oliva, A. T., Oliver, L. R., & Mac Millan, I. C. (1992). A catastrophe model for developing service satisfaction strategies. The Journal of Marketing, 56(3), 83–95.CrossRefGoogle Scholar
  31. Pareigis, J., Edvardsson, B., & Enquist, B. (2011). Exploring the role of the service environment in forming customer’s service experience. International Journal of Quality and Service Sciences, 3(1), 110–124.CrossRefGoogle Scholar
  32. Payne, A. F., Storbacka, K., & Frow, P. (2008). Managing the co-creation of value. Academy of Marketing Science, 36, 83–96.CrossRefGoogle Scholar
  33. Pine II, B. J., & Gilmore, J. H. (1999). The Experience Economy. Harvard Business Review, July-August, Boston, M.A, 18–23.Google Scholar
  34. Rias, N. M., Musab, R., & Muda, M. (2016). Reconceptualisation of customer experience quality (EXQ) measurement scale. Procedia Economics and Finance, 37, 299–303.CrossRefGoogle Scholar
  35. Schmitt, B. (1999). Experiential marketing: How to get customers to sense, feel, think, act and relate to your company and brands. Journal of Marketing, 15(1–3), 56–67.CrossRefGoogle Scholar
  36. Schmitt, B. (2000). Experiential marketing: How to get customers to sense, feel, think, act and relate to your company and brands. Journal of Marketing Research, 30, 7–27.Google Scholar
  37. Shankar, V., Smith, A. K., & Rangaswamy, A. (2003). Customer Satisfaction and loyalty in online and offline environments. International Journal of Research in Marketing, 153–175.CrossRefGoogle Scholar
  38. Terblanche, N. S. & Boshoff, C. (2004). The in-store shopping experience: A comparative study of supermarket and clothing store customers. South African Journal of Business Management, 35(4), 1–10.Google Scholar
  39. Verhoef, P. C., Lemon, K. N., Parasuraman, A., Roggeveen, A., Tsiros, M., & Schlesinger, L. A. (2009). Customer experience creation: Determinants, dynamics, and management strategies. Journal of Retailing, 85(1), 31–41.CrossRefGoogle Scholar
  40. Yi, Y., & Gong, T. (2009). An integrated model of customer social exchange relationship: The moderating role of customer experience. The Service Industries Journal, 29(11), 1513–1528.CrossRefGoogle Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  • Swati Raina
    • 1
  • Hardeep Chahal
    • 2
  • Phillip Klaus
    • 3
  • Kamani Dutta
    • 4
  1. 1.Lovely Professional UniversityPhagwaraIndia
  2. 2.University of JammuJammuIndia
  3. 3.School of Management Centre for Advanced Research in MarketingCranfield UniversityBedfordshireUK
  4. 4.University of JammuJammuIndia

Personalised recommendations