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Customer Satisfaction for Financial Services: The Role of Products, Services, and Information Technology

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  • M. S. Krishnan

    (University of Michigan Business School, 701 Tappan Street, Ann Arbor, Michigan 48109)

  • Venkatram Ramaswamy

    (University of Michigan Business School, 701 Tappan Street, Ann Arbor, Michigan 48109)

  • Mary C. Meyer

    (Department of Statistics, University of Georgia, Athens, Georgia 30602)

  • Paul Damien

    (University of Michigan Business School, 701 Tappan Street, Ann Arbor, Michigan 48109)

Abstract

In this paper, we study the drivers of customer satisfaction for financial services. We discuss a full Bayesian analysis based on data collected from customers of a leading financial services company. Our approach allows us to explicitly accommodate missing data and enables quantitative assessment of the impact of the drivers of satisfaction across the customer population. We find that satisfaction with product offerings is a primary driver of overall customer satisfaction. The quality of customer service with respect to financial statements and services provided through different channels of delivery, such as information technology enabled call centers and traditional branch offices, are also important in determining overall satisfaction. However, our analysis indicates that the impact of these service delivery factors may differ substantially across customer segments. In order to facilitate managerial action, we discuss how specific operational quality attributes for designing and delivering financial services can be leveraged to enhance satisfaction with product offerings and service delivery. Our approach and findings have significant implications for managing customer satisfaction in the financial services industry.

Suggested Citation

  • M. S. Krishnan & Venkatram Ramaswamy & Mary C. Meyer & Paul Damien, 1999. "Customer Satisfaction for Financial Services: The Role of Products, Services, and Information Technology," Management Science, INFORMS, vol. 45(9), pages 1194-1209, September.
  • Handle: RePEc:inm:ormnsc:v:45:y:1999:i:9:p:1194-1209
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    File URL: http://dx.doi.org/10.1287/mnsc.45.9.1194
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    References listed on IDEAS

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    1. Antreas D. Athanassopoulos & Andreas Soteriou & Stavros Zenios, 1997. "Disentangling Within- and Between-Country Efficiency Differences of Bank Branches," Center for Financial Institutions Working Papers 97-17, Wharton School Center for Financial Institutions, University of Pennsylvania.
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    4. Frances X. Frei & Ravi Kalakota & Leslie M. Marx, 1997. "Process Variation as a Determinant of Service Quality and Bank Performance: Evidence from the Retail Banking Study," Center for Financial Institutions Working Papers 97-36, Wharton School Center for Financial Institutions, University of Pennsylvania.
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    6. Frances X. Frei & Patrick T. Harker & Larry W. Hunter, 1995. "Performance in Consumer Financial Services Organizations: Framework and Results from the Pilot Study," Center for Financial Institutions Working Papers 95-03, Wharton School Center for Financial Institutions, University of Pennsylvania.
    7. Sunder Kekre & Mayuram S. Krishnan & Kannan Srinivasan, 1995. "Drivers of Customer Satisfaction for Software Products: Implications for Design and Service Support," Management Science, INFORMS, vol. 41(9), pages 1456-1470, September.
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    Citations

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    Cited by:

    1. Magdalena Bekk & Matthias Spörrle & Miriam Landes & Klaus Moser, 2017. "Traits grow important with increasing age: customer age, brand personality and loyalty," Journal of Business Economics, Springer, vol. 87(4), pages 511-531, May.
    2. Roland T. Rust & Tuck Siong Chung, 2006. "Marketing Models of Service and Relationships," Marketing Science, INFORMS, vol. 25(6), pages 560-580, 11-12.
    3. Yi-Chan Chung, 2015. "Customer Relationship Management Activities and Operational Performance in Taiwan Engineering Consultant Companies," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 5(10), pages 22-32, Octomber.
    4. Gordon Liu & Catherine Liston-Heyes & Wai-Wai Ko, 2010. "Employee Participation in Cause-Related Marketing Strategies: A Study of Management Perceptions from British Consumer Service Industries," Journal of Business Ethics, Springer, vol. 92(2), pages 195-210, March.
    5. Ralston, Deborah & Wright, April & Garden, Kaylee, 2001. "Can mergers ensure the survival of credit unions in the third millennium?," Journal of Banking & Finance, Elsevier, vol. 25(12), pages 2277-2304, December.
    6. Rajiv D. Banker & Robert J. Kauffman, 2004. "50th Anniversary Article: The Evolution of Research on Information Systems: A Fiftieth-Year Survey of the Literature in Management Science," Management Science, INFORMS, vol. 50(3), pages 281-298, March.
    7. Teerling, Marije L., 2004. "How about integration: the impact of online activities on store satisfaction and loyalty," Research Report 04F08, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    8. Sridhar Balasubramanian & Prabhudev Konana & Nirup M. Menon, 2003. "Customer Satisfaction in Virtual Environments: A Study of Online Investing," Management Science, INFORMS, vol. 49(7), pages 871-889, July.
    9. repec:dgr:rugsom:04f08 is not listed on IDEAS
    10. Voicu-Dorobantu Roxana & Marinoiu Ana Maria, 2009. "The Impact Of The Internet On Trading – A Theoretical Approach On The Investor," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 257-260, May.
    11. Torres, Anna & Tribó, Josep A., 2011. "Customer satisfaction and brand equity," Journal of Business Research, Elsevier, vol. 64(10), pages 1089-1096, October.
    12. Mankila, Merja, 2004. "Retaining students in retail banking through price bundling: Evidence from the Swedish market," European Journal of Operational Research, Elsevier, vol. 155(2), pages 299-316, June.

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