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Customer Perception and Its Influence on the Financial Performance in the Ecuadorian Banking Environment

Author

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  • Ana Belen Tulcanaza-Prieto

    (Escuela de Negocios, Universidad de Las Américas, UDLA, Vía a Nayón, Quito 170124, Ecuador)

  • Iliana E. Aguilar-Rodríguez

    (Escuela de Negocios, Universidad de Las Américas, UDLA, Vía a Nayón, Quito 170124, Ecuador)

  • Chang Won Lee

    (School of Business, Hanyang University, Seoul 04763, Korea)

Abstract

This study examines the relationship between customer perception and financial corporate performance in the Ecuadorian banking environment. A self-designed online questionnaire was carried out to gather information regarding customer perception factors (tangibility, trust and service guarantee, empathy, customer satisfaction, and customer loyalty), while the financial data of the Ecuadorian banks were attained from their annual financial indicator reports (financial efficiency and liquidity). A total of 243 questionnaires were recollected and 219 were considered as the final valid data. SPSS 26 was utilized for data analyses. Structural equation modeling was used to test the hypotheses. Our findings revealed that customer perception has a positive and significant (at least at the 5% level) impact on the financial performance of banks. Similarly, customer loyalty is influenced by tangibility, trust and service guarantee, empathy, and customer satisfaction. Study results are mostly consistent with the banking environment of other countries, especially Nigeria, and Scandinavian nations. Bank managers might always prioritize the customer perception of the bank due to it being considered a strong predictor of the bank’s financial performance. This study provides a complete statistical and econometrical model with tangible and intangible factors of customer perception (qualitative variables) and it includes financial records (quantitative variables). The main limitation of our study is the calculation of the customer perception index because Ecuadorian institutions do not calculate it and thus, we estimate the index in our model. For future research, the suggestion is that a corporate governance index with a customer perception component is included to improve the model.

Suggested Citation

  • Ana Belen Tulcanaza-Prieto & Iliana E. Aguilar-Rodríguez & Chang Won Lee, 2022. "Customer Perception and Its Influence on the Financial Performance in the Ecuadorian Banking Environment," Sustainability, MDPI, vol. 14(12), pages 1-14, June.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:12:p:6960-:d:833287
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    References listed on IDEAS

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    1. Ana Belen Tulcanaza-Prieto & HoKyun Shin & Younghwan Lee & Chang Won Lee, 2020. "Relationship among CSR Initiatives and Financial and Non-Financial Corporate Performance in the Ecuadorian Banking Environment," Sustainability, MDPI, vol. 12(4), pages 1-16, February.
    2. Miklós Pakurár & Hossam Haddad & János Nagy & József Popp & Judit Oláh, 2019. "The Service Quality Dimensions that Affect Customer Satisfaction in the Jordanian Banking Sector," Sustainability, MDPI, vol. 11(4), pages 1-24, February.
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    Cited by:

    1. Ana Belen Tulcanaza-Prieto & Alexandra Cortez-Ordoñez & Chang Won Lee, 2023. "Influence of Customer Perception Factors on AI-Enabled Customer Experience in the Ecuadorian Banking Environment," Sustainability, MDPI, vol. 15(16), pages 1-22, August.
    2. Ibrahim Mutambik, 2023. "Customer Experience in Open Banking and How It Affects Loyalty Intention: A Study from Saudi Arabia," Sustainability, MDPI, vol. 15(14), pages 1-20, July.
    3. Meltem Kılıç & Hasan Emin Gurler & Ahmet Kaya & Chang Won Lee, 2022. "The Impact of Sustainability Performance on Financial Performance: Does Firm Size Matter? Evidence from Turkey and South Korea," Sustainability, MDPI, vol. 14(24), pages 1-19, December.

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