Unobserved heterogeneity and the importance of customer loyalty in mobile banking

ABSTRACT

This study presents an empirical research which main purpose is to determine the variables with drive loyalty of mobile banking users, to segment consumers and to explain the causes. A self-administered online survey was used to collect data later assessed through partial least squares analysis. The partial least squares-prediction-oriented segmentation methodology evidenced unobserved heterogeneity. Also, the most significant variables within each segment were revealed through an importance-performance map analysis. This general model shows that the current banking usage and satisfaction have a positive impact on customer loyalty. Three different segments were obtained according to banking usage, ease of use and utility variables. Satisfaction turned out critical in all cases. Research was conducted in only one country (Chile). Thus, limited in size but large enough for the PLS analysis. The conclusions and managerial implications provide alternatives and strategies for banking entities so they will need to approach satisfaction measurement and enhancement systems alongside discriminatory variables to increase trust, utility and ease of use in every segment. As of today, customer segmentation in mobile banking was based on a priori partitions. This new approach does not depend on sample distribution, it rather determines unobserved heterogeneity. In addition, this research also evaluates current mobile banking usage.

KEYWORDS:

• Mobile banking
• customer loyalty
• satisfaction
• use
• trust

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes on contributors

F. Liébana-Cabanillas is an Assistant Professor in the Marketing and Market Research Department at the University of Granada (Spain) since 2000 and hold a Ph.D. Business Sciences in this university. He has a degree in Business and Administration Science and a Master in Marketing and Consumer behaviour, from the University of Granada. His main area of research and interest the field is the effectiveness of the mobile and online banking, Internet consumer behaviour and e-banking acceptance; the results of which are reflected in various papers (Computer in Human Behaviour, Technology Analysis & Strategic Management; Expert Systems With Applications, Service Industries Journal, Industrial Management & Data Systems, International Journal of Management Science and Information Technology, Global Business Perspectives, Harvard Deusto Business Research, Revista Economía Información Comercial Española, Papeles de Economía Española, Revista Española de Investigación de Marketing, etc) which have been presented at the European Marketing Academy (EMAC), Asociación Española de Marketing Académico y Profesional (AEMARK), International Network of Business and Management (INBAM), International Symposium on Management Intelligent Systems (ISMIS), Jornadas Hispanolusas de Gestión, etc., book (Pearson) and chapters in different multidisciplinary books (IGI Global, Springer, etc.). He is currently working on different research projects in Internet social networks, mobile payment, social commerce, Internet and effectiveness, multi-objective optimisation and new technologies acceptance.

M. Alonso-Dos-Santos is Ph.D. in marketing and consume. He is lecturer in UCSC in Chili. He published some papers in sport marketing, he is currently working on neuromarketing and effectiveness of sponsorship. Administration Department, Universidad Católica de la Santísima Concepción, Street Alonso Ribera 2850. Postal Code 4090541. Concepción, Chili. E-mail: [email protected]. Tel: [phone].

Y. Soto-Fuentes Business Administration and Commercial Engineering degree at the University Católica de la Santísima Concepción en Concepción. Areas of interest marketing, human resources and strategy (management control). E-mail: [email protected]

V. A. Valderrama-Palma Commercial Engineering at University Católica de la Santísima Concepción, Chile. Area of interest are marketing and human resources. E-mail: [email protected]

ORCID

M. Alonso-Dos-Santos http://orcid.org/0000-0001-9681-7231