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The Mediating Effects of Service Charge Transparency on the Relationship between Corporate Social Responsibility and Customer Behaviour in Hong Kong¡¯s Retail Banking Sector

Author

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  • Canon Tong
  • Anthony Wong
  • Steven Leung

Abstract

The collapse of substantial numbers of large multinational banking corporations in recent years has prompted regulatory authorities to raise both disclosure and transparency requirements on banks. Banking customers have also called for additional protection against unconscionable practices, and for greater transparency and product information. The literature reveals that transparency positively influences customer behaviour. However, the mediating effect of service charge transparency on the relationship between corporate social responsibility and customer behaviour is a neglected topic. The findings in this research revealed that corporate social responsibility has a positive and significant influence on service charge transparency, customer repurchase intention and word-of-mouth intention. The results also confirmed that service charge transparency has a positive and significant influence on customer repurchase intention and word-of-mouth. Furthermore, they revealed that service charge transparency plays a mediating role in the respective relationships between corporate social responsibility and the two dimensions of consumer behaviour, customer repurchase intention and word-of-mouth intention.

Suggested Citation

  • Canon Tong & Anthony Wong & Steven Leung, 2013. "The Mediating Effects of Service Charge Transparency on the Relationship between Corporate Social Responsibility and Customer Behaviour in Hong Kong¡¯s Retail Banking Sector," Business and Economic Research, Macrothink Institute, vol. 3(1), pages 56-88, June.
    • Handle: RePEc:mth:ber888:v:3:y:2013:i:1:p:56-88
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    Corporate Social Responsibility; Service Charge Transparency; Repurchase Intention; Word-of-mouth Intention;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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