||Service Relationship: Satisfying and Dissatisfying Incidents in Bank service
||Service Relationship: Satisfying and Dissatisfying Incidents in Bank service
||Institute of International Management (IIMBA--Master)(on the job class)
Critical incident technique (CIT)
Wealth management market
From the investigation of service relationship, several components such as relationship quality, customer relation benefit and empathy are seen as essential antecedents of successful long-term consumer relationships. Most articles agreed that customers’ expectations are rarely concerned with a single aspect of the service package but rather with many aspects.
Furthermore through understanding customer’s perspective, the main purpose of this study is to investigate what kinds of incidents can be classified as dis/satisfactory from the customers’ point of view who belong to the wealth management group in a Chinese bank, a case of Bank S. This study focuses on the interactions between customers and bank employee/financial specialists in the service process. Following the line from Bitner et al. (1990,1994) study to Johnson R. (1995) and Johnson L. (2002) studies in relational benefit field, data for this study is collected using the critical incident technique (CIT).
The procedure of data analysis followed open coding, axial coding and selective coding. Using critical incident method, this study collected 114 incidents from bank customers and employees. The incidents were categorized into four groups: Staff and interpersonal, Operation process, Convenience and Cost. The research findings were also compared with previous articles and found some new findings. These new findings are issues about competence, dignity, the pressure from hard sell and the amount of fee/commission.
TABLE OF CONTENTS III
LIST OF TABLES VI
LIST OF FIGURES VII
CHAPTER ONE INTRODUCTION 1
1.1 Research Motivation. 1
1.2 Research objective and Research questions. 2
1.3 Industry Background. 2
1.3.1 The wealth management market. 2
1.3.2 The domestic wealth management. 4
1.3.3 Company Background. 5
CHAPTER TWO LITERATURE REVIEW 7
2.1 Service relationship. 8
2.1.1 Definition. 8
2.1.2 The importance of service relationship. 9
2.1.3 Developing service relationship. 10
2.2 Trust and Commitment. 13
2.3 Relationship satisfaction. 15
2.3.1 Link to customer loyalty and profitability. 17
2.3.2 Link to behavior. 17
2.3.3 The level of customer satisfaction is “totally satisfied”. 18
2.4 Empathy. 19
2.5 Customer relation benefits. 21
2.5.1 Definition. 21
2.5.2 Application in marketing. 22
CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY 24
3.1 Critical incident technique. 24
3.1.1 What CIT is. 24
3.1.2 Description of the CIT research method. 25
3.2 Research design introduction. 26
3.2.1 Sampling design. 27
3.3 Pilot data collection procedure. 28
3.4 Data collection procedure. 29
3.4.1 Preparation for interviews. 29
3.4.2 In the interview. 30
3.4.3 The supplement to data collection approach. 33
3.5 Data Analysis Procedure. 34
3.5.1 Open coding. 34
3.5.2 Axial coding. 34
3.5.3 Selective coding. 35
3.5.4 The CIT credibility checks. 35
3.5.5 Generation and compilation of data. 36
CHAPTER FOUR RESEARCH FINDINGS 38
4.1 Respondent Information. 38
4.2 Finding and discussion. 40
4.2.1 Group 1: Staff and interpersonal. 41
4.2.2 Group 2: Operation process. 44
4.2.3 Group3: Convenience. 46
4.2.4 Group4: Cost. 47
4.3 Comparison with other studies. 47
4.3.1 Dignity and respect. 50
4.3.2 Competence, accuracy and speed within core service. 51
4.3.3 Face to the hard sell. 51
4.3.4 The amount of fee and commission. 52
4.4 Discussion of findings in relation to research questions. 52
4.5 Conclusion and practical implications. 58
4.6 Limitation. 62
APPENDIX A Transcriptions of Customer Reported Critical Incidents 67
APPENDIX B Transcriptions of Employees Reported Critical Incidents 93
Aggarwal, P., et al. (2005). Salesperson empathy and listening: impact on relationship outcomes. Journal of marketing theory and practice, 13(3), 16-31.
Barnes, J. G. (1997). Closeness, strength, and satisfaction: examining the nature of relationships between providers of financial services and their retail customers. Psychology & marketing, 14(18), 765-790.
Baumann, C., et al. (2005). Determinants of customer loyalty and share of wallet in retail banking. Journal of financial services marketing, 9(3), 231-248.
Bendapudi, N., & Berry, L. L. (1997). Customer's motivations for maintaining relationships with service providers. Journal of retailing, 73(1), 15-37.
Berry, L. L. (1995). Relationship marketing of services—growing interest, emerging perspectives. Journal of the academy of marketing science, 23(4), 236-245.
Bitner, M. J., et al. (1994). Critical service encounters: the employee's viewpoint. Journal of marketing, 58(4), 95-106.
Bitner, M. J., et al. (1990). The service encounter: diagnosing favorable and unfavorable incidents. Journal of marketing, 54(1), 71-84.
Butterfield, L. D., et al. (2005). Fifty years of the critical incident technique: 1954-2004 and beyond. Qualtative research, 5(4), 475-497.
Eisenberg, N. (2000). Empathy and sympathy. In M. Lewis & J. M. Haviland-Jones (Eds.), Handbook of emotions (pp. 677-691). New York: The Guilford Press.
Evensky, H. R. (1997). Wealth management. New York: McGraw-Hill.
Flanagan, J. C. (1954). The critical incident technique. Psychological bulletin, 51(4), 327-358.
Greenberg, H. (2003). Producers lack key personality traits of successful sales people. National underwriter, 107(47), 11.
Groönroos, C. (2000). Service management and marketing. West Sussex, England: John Wiley & Sons, Ltd.
Gwinner, K. P., et al. (1998). Relational benefits in services industries: the customer's perspective. Academy of marketing science, 26(2), 101-114.
Hendrie, J. R., & Loh, B. (2006). From transactions to relationships. Brandweek, 47(21), 20-21.
Jackson, B. B. (1985). Build customer relationship that last. Harvard business review, 63(6), 120-128.
Johnson, D., & Grayson, K. (2005). Cognitive and affective trust in service relationships Journal of business research, 58(4), 500-507.
Johnson, L. (2002). Using the critical incident technique to assess gaming customer satisfaction. UNLV gaming research & review journal, 6(2), 1-12.
Johnston, R. (1995). The determinants of service quality: satisfiers and dissatisfiers. International journal of service industry management, 6(5), 53-71.
Jones, T. O., & W. Earl Sasser, J. (1995). Why satisfied customers defect. Harvard business review, 73(6), 88-101.
Jonsson, P., & Zineldin, M. (2003). Achieving high satisfaction in supplier-dealer working relationships. Supply chain management, 8(3), 224-240.
Keiningham, T. L., et al. (2003). The impact of customer satisfaction on share-of-wallet in a business-to-business environment. Journal of service research, 6(1), 37.
Kohut, H. (1984). How does analysis cure? Chicago: The university of Chicago Press.
Kumar, K., & Becerra-Fernandez, I. (2007). Interaction technology: speech act based information technology support for building collaborative relationships and trust. Decision support systems, 43(2), 584-606.
Kwon, I.-W. G., & Suh, T. (2004). Factors affecting the level of trust and commitment in supply chain relationships. Journal of supply chain management, 40(2), 4-14.
Liang, C.-J., & Wang, W.-H. (2005). Integrative research into the financial services industry in Taiwan: relationship bonding tactics, relationship quality and behavioral loyalty. Journal of financial services marketing, 10(1), 65-83.
Maguire, S., et al. (2006). Managing customer satisfaction through efficient listening tools: an evaluation of best practice in four world-class companies. International journal of services and operations management, 2(1), 22-41.
Mayer, D., & Greenberg, H. M. (2006). What makes a good salesman. Harvard business review, 84(7/8), 164-171.
Moehlman, M. (2004). What is wealth management? Dental economics, 94(10), 138-140.
Moore, M. L. (2000). Toward understanding the consumer psychology of relationship marketing. Unpublished dissertation, The University of Connecticut, Connecticut.
Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of marketing, 58(3), 20-38.
O'Loughlin, D., & Szmigin, I. (2006). Emerging perspectives on customer relationships, interactions and loyalty in Irish retail financial services. Journal of consumer behaviour, 5(2), 117-129.
Palmatier, R. W., et al. (2006). Factors influencing the effectiveness of relationship marketing: a meta-analysis. Journal of marketing, 70(4), 136-153.
Reichheld, F. F., & W. Earl Sasser, J. (1990). Zero defections: quality comes to services. Harvard business review, 68(5), 105-111.
Saunders, M., et al. (2003). Research methods for business students. New York: Prentice Hall.
Shin-jun, T. (2006). Cross-selling: an application to the bank consumer loans. Paper presented at the Graduate school of business administration.
Smith, A. (2006). Cognitive empathy and emotional empathy in human behaviior and evolution. The psychological record, 56(1), 3-21.
Stauss, B. (1993). Using the critical incident technique in measuring and managing service quality. In E. E. Scheuing & W. F. Christopher (Eds.), The service quality handbook (pp. 408-427). New York: Amacom.
Strauss, A., & Corbin, J. (1990). Basics of qualitative research. Thousand Oaks, California: SAGE Publications.
Wagner, R. F. (1950). Critical requirements for dentists. The journal of applied psychology, 34(3), 190-192.
Wong, A., & Sohal, A. (2002). Customers' perspectives on service quality and relationship quality in retail encounters. Managing service quality, 12(6), 424-433.
Zeithaml, V., et al. (1990). Delivering quality service: balancing customer perceptions and expectations. New York: The Free Press.