Academic journal article Journal of Marketing and Management

Moderating Effect of Individualism/collectivism on the Association between Service Quality, Corporate Reputation, Perceived Value and Consumer Behavioural Intention

Academic journal article Journal of Marketing and Management

Moderating Effect of Individualism/collectivism on the Association between Service Quality, Corporate Reputation, Perceived Value and Consumer Behavioural Intention

Article excerpt

Introduction

It is presumed that one of the ways through which banks can handle competition effectively is by first knowing their customers' behaviour and then designing marketing programmes accordingly. Historically, retail banking is the backbone of banking transactions, and, thus, there is a need for banks to consolidate on retail banking in order to boost their earnings (Nwachukwu, 2010). He farther posits that, in 2008, the Boston Consulting Group observes that retail banking activities accounted for 55 per cent of the revenues generated by the 140 banks on its global database, up from 45 percent in 2006. In a similar way, according to Michael Lafferty, chairman Lafferty Group some of the mistakes of Nigerian banks include; less attention given to retail customers in the major banks, and, therefore, consumers were "used and abused" to serve the purpose of the investment banking divisions, mis-selling and predatory pricing became the order of the day (Nwachukwu, 2010). To this end, this study focuses on the individual customers of commercial banks in Nigeria.

Meanwhile, various studies have increasingly shown that cultural values from one country to another affect the buying-habits and behaviour of customers in the service context (Jabnoun & Khalifa, 2005; Pizam & Ellis, 1999; Gilbert & Tsao, 2000; Mattila 1999). According to Furer, Liu, and Sudharshan (2000), the importance and perception of service quality are highly dependent on customers' values and beliefs that might change from one culture to another. Similarly, Fock (2004) posits that studies reveal that consumers in different nations exhibit divergent behaviour. Hence, Oh and Park (1997) suggest that it is necessary to refine theories and methodologies to be suitable to a specific situation. Given the difference in orientation, economy, social conditions and cultural values among consumers across the nations, it is presumed that the behavioural responses of consumers in Nigeria will be different from those of other countries like the USA, UK and China. Hence, this study investigates the moderating effect of individualism dimension of culture on customer behavioural responses in the Nigerian banking industry, with a view to identifying and matching different cultural orientation of customers with appropriate marketing programmes.

Various studies such as Palumbo and Herbig (2000), Sheth and Parvatiyar (1995), Furer et al. (2000), Gayatri, Hume, and Mort (2011), Salim (2007) establihed the influence of culture on consumer buying decision and post-purchase behaviour. Consumers from different cultural groups have different tendencies and behaviours towards service experience. Consequently, these differences would most likely influence consumer decisions and eventually his behaviour. As a result, marketer should design appropriate marketing strategies suitable for each market segment. Hence, it is argued that culture has a significant influence on the consumers' perception (Maiyaki, 2012a).

Literature Review

Behavioural intentions are signals for the actual purchase, and hence, it is important that it is monitored (Zeithaml, Berry, & Parasuraman, 1996). Behavioural intentions include purchase intention and willingness to pay for premium price, and this has critical effects on brand and organisational performance. Keh and Xie (2009) stress that a customer who exhibits both higher purchase intention and willingness to pay a price premium is more likely to stay longer with the service provider and have lower sensitivity to price changes. Behavioural intention is among the most important concepts in marketing literature, perhaps due to its strong relationship with the actual consumer buying behaviour. Morwitz and Schmittlein (1992) posit that several studies have reported a positive correlation between behavioural intentions and the actual customer behaviour. Put differently, if consumers have a high behavioural intention towards a particular product or service, then there is a likelihood that they will engage in the actual behaviour. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.