How Public-Issue-Promoted and Revenue-Related Types of Social Marketing Influence Customer-Perceived Value in Taiwan's Banking Industry

ABSTRACT

Marketing promotions with public issue dimensions are becoming mainstream as practitioners respond to higher consumer expectations of corporate social responsibility. However, when consumers decide to buy a product or service, they usually consider service quality and perceived risk about the product or service. The general consensus of most research is that customer-perceived value determines customer loyalty. Does social marketing influence customer-perceived value by service quality or perceived risk? Somewhat surprisingly, little evidence exists that directly addresses this issue. This study elucidates how public-issue-promoted and revenue-related social marketing, service quality, and perceived risk are related, and explores the influence of service quality and perceived risk on customer-perceived value. The results indicate that public-issue-promoted social marketing makes a great impact on customer-perceived value in two ways: It affects customer-perceived value by increasing perceived service quality and by decreasing perceived risk. Discussion of the findings leads to some suggestions for improvements for the banking industry.

KEYWORDS:

• Social marketing
• service quality
• perceived risk customer-perceived value

ACKNOWLEDGMENT

The authors would like to thank the National Science Council of the Republic of China for financially supporting this research under Contract No. NSC 91-2416-H-130-002.