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Mediating role of trust in the impact of perceived empathy and customer orientation on intention to continue relationship in Indian banks

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  • Rajeev Kumra

    (Indian Institute of Management)

  • Praveen Kumar Sharma

    (Jaypee Institute of Information Technology)

Abstract

Despite the relevance of empathy in banking services, very few studies in literature have investigated the multidimensional nature of both cognitive and affective empathy, especially from the perspective of the stage-model theory. In fact, literature that is available has been stymied with conflicting findings about the influence of empathy on relational outcomes. This study aims to examine the mediation effects of trust in between the relationship of both perceived cognitive and affective empathy and intention to continue relationship in customers of Indian banks. Additionally, it explores the relationship of customers’ perceived empathy on customers’ intention to continue through customer orientation. Using structural equation modeling (SEM), we conducted a mediation analysis on a sample of 334 buyers. Largely, the results confirmed that trust does have a mediating role on both perceived cognitive and affective empathy and perceived customer orientation, due to which, customers intend to continue their relationship. Holistically, the findings highlight the importance of multidimensional perceived empathy, trust, and customer orientation within the Indian banking sector.

Suggested Citation

  • Rajeev Kumra & Praveen Kumar Sharma, 2022. "Mediating role of trust in the impact of perceived empathy and customer orientation on intention to continue relationship in Indian banks," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 27(4), pages 372-386, December.
    • Handle: RePEc:pal:jofsma:v:27:y:2022:i:4:d:10.1057_s41264-021-00137-6
    DOI: 10.1057/s41264-021-00137-6
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