The impact of perceived fairness and trustworthiness on customer trust within the banking sector

Abstract

Given the importance of trust regarding the trustor - trustee relationship within the service industries, this paper aims to display and describe the relations between; perceived fairness - namely procedural fairness, distributional fairness and interactional fairness -, trustworthiness and customer trust within the banking sector, for the case of North Cyprus. Data was obtained through the use of surveys distributed to banking customers and analyzed with the use of partial least squares-structural equation modeling (PLS-SEM), a variance-based framework. Findings obtained suggest that the perception of both perceived fairness and trustworthiness are prominent contributors to the formation of customer trust within the banking industry. Results of the investigation provide a resourceful insight for both marketers and financial service providers aiming to induce customer interactions.

Keywords:

• Perceived fairness
• customer trust
• banking
• PLS-SEM

JEL CODES:

• C10
• C30
• G21

Disclosure statement

None.