How trust in financial supplier information impacts young adults' financial information involvement: The moderating roles of product savings risk and social norm

Although consumers' risk‐taking, supplier trust, social norms and information involvement are central to much of thought in the financial market and consumer economic literature, it is not known how the interplay between consumers' trust in supplier information, risk‐taking behaviour and social norm may influence information involvement. This research contributes to the consumer economic literature by investigating how product savings risk and social norm affect the relationship between young adults' trust in supplier information and their information involvement. On the basis of two samples with young adults who recently have purchased a low‐risk savings product (n = 641) and a high‐risk savings product (n = 219), respectively, several results are obtained. It is found that both product savings risk and social norm positively moderate the relationship between young adults' trust in supplier information and their information involvement. In addition, the results indicate that the three‐way interaction between trust in supplier information, products savings risk and social norm has a positive effect on information involvement. As direct implications, financial authorities and financial service managers should especially consider investing additional resources in developing information trust for high‐risk savings products and should also take social norms into account when considering young adults' high‐risk‐taking behaviour. Copyright © 2017 John Wiley & Sons, Ltd.     

Emerging perspectives on customer relationships,interactions and loyalty in Irish retail financial services

• This paper presents the key findings in relation to current consumer perspectives on the role of relationships, the nature of loyalty and types of customer interaction from an in‐depth qualitative consumer study of Irish retail banking.
• Although the literature proposes that the RM approach is particularly applicable to the financial services sector, the research findings identify key supply and demand‐related changes within Irish financial services and raise questions as to the appropriateness of general RM theory to the current nature of interaction between consumers and their financial suppliers.
• Key customer factors such as low involvement, apathy and dissatisfaction have resulted in much apparent customer loyalty actually being spurious. More important for customers in this study was how convenient the bank was for their lifestyle.
• In an age in which increased depersonalisation and automation impact upon the nature of consumer‐supplier interaction and service delivery, it would appear that the concepts of relationship and loyalty need to be fundamentally re‐examined and their role and relevance within current retail financial services re‐appraised.

Copyright © 2006 John Wiley & Sons, Ltd.     

Show me The Money! do Financial Rewards for Performance Enhance or Undermine The Satisfaction from Emotional Labor?

Does satisfaction from performing emotional labor (EL)—maintaining positive emotions with customers as part of the job—depend on the financial rewards available for good service? According to a “controlling perspective” of rewards, satisfaction from performing EL may be undermined by financial incentives, but based on a “valuing perspective” of rewards, the relationship should be enhanced. We contribute to the literatures on EL and performance‐contingent rewards with a “full‐cycle” inquiry of this question conducted with (a) a field survey of diverse occupations in the United States, (b) an experimental call center simulation with U.S. college students, and (c) a multilevel study of Taiwanese sales firms. Overall, financial rewards for service performance enhanced, rather than undermined, satisfaction from EL requirements and effort (i.e., surface acting) with customers. Performing EL by modifying feelings (i.e., deep acting) was positively related to job satisfaction regardless of rewards, beyond personality traits. Results have implications for reward structures and enhancing job satisfaction with this increasingly common form of labor.     

Belief in a just world and organisational loyalty: Trust as an underlying mechanism

This research examined whether employees' personal belief in a just world (BJW) is associated with their organisational loyalty and whether this relationship is statistically mediated by organisational trust. To test these hypotheses, we conducted two studies with employees from China (study 1, N = 314) and Germany (study 2, N = 189). The results from both studies supported the proposed model. In addition, study 2 revealed that the relationship between BJW and organisational loyalty persisted when controlling for global personality traits. These suggest that managers and organisations may increase employees' loyalty by providing an environment that fosters their sense of justice and trust.     

The antecedents of consumer loyalty in retail banking

• This paper is focused on a study designed to investigate loyalty in retail banking. The research findings suggest that loyalty is the outcome of a cognitive rather than an affective process. The main antecedents of bank loyalty were found to be perceived value, service quality, service attributes, satisfaction, image and trust: constructs that are inter‐related and form a network of loyalty antecedents.

Copyright © 2006 John Wiley & Sons, Ltd.     

Ecological social capital does not predict geographical variance in increases in depression following the 2008 financial crisis

Research suggests that the financial crisis of 2008 and its aftermath were associated with an increase in mental health problems, but there has been little research into potential protective factors. Ecological social capital is a plausible candidate given evidence of its protective status following natural disasters. Pre-crisis area-level estimates of generalized trust and sense of belonging were computed from the 2004 to 2006 waves of the Living in Wales survey (N = 43,473) for 413 neighbourhoods in Wales, using multilevel regression with post-stratification, a technique for disaggregating survey data into small area estimates. Area estimates and the planned analysis were preregistered using Open Science Framework. Data (N = 180,462) from the Welsh Health Survey (2003–2015) were then used to model whether social capital was protective against depression in general and whether it moderated the increase in depression prevalence, associated with the financial crisis. Depression rates increased post-crisis (odds ratio [OR] = 1.271), and trust was a protective factor against depression (OR = 0.775). The hypothesized interaction, however, was not significant (OR = 1.033), nor was sense of belonging (OR = 0.934) or its interaction with the crisis (OR = 1.024). Although ecological generalized trust appears to be a protective factor against depression, it did not buffer against the mental health impact of the financial crisis.     

The moderating effects of financial broad‐scope trust on consumer knowledge,cognitive effort,and financial healthiness

Substantial research results suggest the global financial crisis has negatively affected consumers' trust in financial service providers. Notably, trust not only relates to consumer trust in individual companies but also relates to the broader business context in which consumers may plan and carry out their financial behavior. This latter form of trust can be referred to as “broad‐scope” trust (BST). BST is especially important in a society context because lack of BST may reduce financial market dynamism, competition, and productivity. Consequently, financial service providers assume an important social responsibility in order to develop BST. Unfortunately, not much is known about the interplay between BST and consumer financial behavior. Based on two surveys comprising 1155 bank consumers and 756 mutual fund investors, respectively, this study investigates the moderating influence of BST on relations between knowledge, cognitive effort, and financial healthiness and also examines the direct influence of BST on cognitive effort and financial healthiness. The results indicate that BST negatively moderates relations between knowledge and financial healthiness and between cognitive effort and financial healthiness. In addition, it is demonstrated that BST negatively influences cognitive effort and positively influences financial healthiness. Our results demonstrate the importance of developing BST as it may ease the burdens put on consumers' financial knowledge and processing capabilities, which in turn may facilitate their financial well‐being. Copyright © 2016 John Wiley & Sons, Ltd.     

Aphasic's comprehension of sentences expressing temporal order of events

Fifty-seven aphasic patients' comprehension of five sentence forms which express the temporal order of events has been investigated. Three major patterns of errors of temporal relations have emerged. The dominant pattern is exhibited by patients making errors on Before's but not on After's. The second and third patterns comprise a fewer number of patients making errors on After's but not on Before's and those making errors on both Before's and After's, respectively. It has been shown that different syndromes of aphasia are equally distributed among these three patterns. In the follow-up study of several patients, fluctuating courses of recovery in which comprehension of before and after alternately increases and decreases have been observed. These results are discussed in connection with a possible account of the acquisition of before and after in Japanese.     

The Influence of Social Regard on the Customer–Service Firm Relationship: The Moderating Role of Length of Relationship

Purpose  

The authors examine the influence of employees’ social regard toward the customers on customer satisfaction, trust, and word of mouth. In addition, we analyzed the moderating role of length of relationship between the service provider and the customer on the effects of social regard on the customer relationship outcomes.     

Narrative expectations in financial forecasting

How do people form expectations about the future? We use amateur and expert investors' expectations about financial asset prices to study this question. Three experiments contrast the rational expectations assumption from neoclassical economics (investors forecast according to neoclassical financial theory) against two psychological theories of expectation formation—behaviorally informed expectations (investors understand empirical market anomalies and expect these anomalies to occur) and narrative expectations (investors use narrative thinking to predict future prices). Whereas neoclassical financial theory maintains that past public information cannot be used to predict future prices, participants used company performance information revealed before a base price quotation to project future price trends after that quotation (Experiment 1), contradicting rational expectations. Importantly, these projections were stronger when information concerned predictions about a company's future performance rather than actual data about its past performance, suggesting that people not only rely on financially irrelevant (but narratively relevant) information for making predictions but erroneously impose temporal order on that information. These biased predictions had downstream consequences for asset allocation choices (Experiment 2), and these choices were driven in part by affective reactions to the company performance news (Experiment 3). There were some mild effects of expertise, but overall the effects of narrative appear to be consistent across all levels of expertise studied, including professional financial analysts. We conclude by discussing the prospects for a narrative theory of choice that provide new microfoundational insights about economic behavior.     

Comprehension of past and future reference revisited

Sentences containing either past tense, future tense, before, or after were presented with sets of sequential pictures to 150 children from 3 to 7 years. Analysis of errors and correct answers led to the following conclusions: (a) Linguistic factors had a major influence on the results, (b) past and future are understood first as mutually exclusive domains, (c) understanding of linguistic reference to past and future increases gradually from 3 through 7 years, and (d) the ability to temporally decenter increases with age. In addition, before and after were better understood than past or future verb tense. This finding is discussed in terms of (a) the difficulty of establishing the limits of the present in relation to past and future, (b) the center picture serving as a reference point for sentences with before and after, and (c) the difference between understanding reference to three sequenced actions and understanding reference to the sequence of past, present, and future relations.     

A case-control study of hopelessness and suicidal behavior in the city of Athens,Greece. The role of the financial crisis

This study aimed to examine the psychometric properties of Beck Hopelessness Scale (BHS) in Greek patients with a recent suicide attempt, the predictive ability of BHS especially in terms of age and the possible effect of the financial crisis on hopelessness as it has been identified as a significant suicide risk factor. The study included a total of 510 individuals, citizens of Athens, Greece. Three hundred and forty individuals (170 attempted suicide patients, and 170 -age and gender- matched healthy individuals used as controls) completed BHS before the financial crisis onset (from 2009 to 2010). A sample of 170 healthy individuals also completed the BHS after the financial crisis onset (from 2013 to 2014), when the impact of the austerity measures was being felt by the Greek society. The Greek BHS version demonstrated good psychometric properties and a sufficient degree of internal consistency. Attempted suicide patients (M = 9) presented higher hopelessness than the controls (M = 3). The patients’ age positively correlated with hopelessness (r_s = .35, p < .001), and the ROC curve revealed that the BHS ability to discriminate the individuals with pathological rates of hopelessness from those without, strengthened as age increased. No significant differences were found between the individuals evaluated before (M = 3) and after (M = 3, p > .05) the crisis onset. Nevertheless, regarding the latter group, the women, the younger individuals, the less educated, the unemployed and the participants with low or mediocre self-reported financial status presented increased hopelessness. Our findings suggest that BHS could be a useful instrument especially when screening for suicide risk in people of older age, and that the financial crisis in Greece had a greater impact on subgroups of the population regarding hopelessness.     

Practice papers personal financial services in a digital age

Co‐operative Bank Financial Advisers Ltd (CBFA) is a wholly‐owned subsidiary of the Co‐operative Bank plc. Established since 1972, it specialises in the provision of independent financial advice to personal and corporate customers across the financial services spectrum. Based in Stockport in the north‐west of the UK, CBFA conducts its business via a nationally‐based team of independent financial advisers (IFA), offering a bespoke service to customers at a mutually agreed time and location—usually bank premises, business premises or in the client's own home. In the late 1990s, CBFA faced a crisis. A number of marketplace challenges threatened the long‐term viability of its business. In this paper, one of the management team members describes how her organisation used its understanding of customer decision‐making—backed by good customer research—to regain its footing in a difficult and competitive marketplace. Copyright © 2003 Henry Stewart Publications.     

Personality and Trust Fosters Service Quality

Purpose

The purpose of this study was to determine the extent to which cognitive and affective trust mediate the service provider personality?Cservice quality relationship, controlling for customer personality.

Design/Methodology/Approach

Hypotheses were tested using a matched sample of 249 customer-service provider dyads.

Results

Service provider service orientation incrementally predicted customer cognitive trust in the service provider above and beyond customer agreeableness, which related significantly to affective and cognitive trust. Analyses further revealed that cognitive trust mediated the service provider service orientation?Cservice quality relationship.

Implications

Hiring service-oriented front-line employees may facilitate customer cognitive trust which in turn relates to service quality. In addition, training front-line employees to identify agreeable customers may facilitate the quick development of trusting relationships.

Originality/Value

This is the first study to simultaneously examine the impact of both the customer and the service provider personalities on customer trust and service quality in long-term relationships. Results demonstrated the role of cognitive trust as a mediator of the relationship between service orientation and service quality.     

The challenges of long‐distance relationships: the effects of psychological distance between service provider and consumer on the efforts to recover from service failure

This paper presents a model of the effects of recovery level in terms of distributive, procedural, and interactional dimensions on consumer attitudes (satisfaction and trust) and their subsequent effects on behavioral intentions. Service medium (online and offline) is considered as a moderating variable in the perspective of psychological distance. Findings reveal that the effects of recovery levels on satisfaction and trust are greater in the offline medium than in the online medium. Moreover, in both low and high recovery situations, offline customers are more satisfied and have higher levels of trust than do online customers. As expected, satisfaction with service recovery plays a pivotal role in enhancing customer's trust and behavioral intentions.     

Temporal clause comprehension in fluent and nonfluent aphasics

Ten fluent and ten nonfluent aphasics participated in this study. Their ability to comprehend before and after clauses which mirrored the order of occurrence and those which did not mirror the order of events was investigated. Results indicate that type of aphasia was not a significant variable related to comprehension but that sentence type was a significant variable. Aphasics' comprehendbefore clauses better thanafter clauses. Nonfluent aphasics were able to comprehend those temporal clauses that mirror the order of occurrence better than those that do not. Order of mention was not a significant factor related to comprehension in the fluent group.     

Ultrafast scene detection and recognition with limited visual information

Humans can detect target colour pictures of scenes depicting concepts like picnic or harbour in sequences of six or 12 pictures presented as briefly as 13?ms, even when the target is named after the sequence. Such rapid detection suggests that feedforward processing alone enabled detection without recurrent cortical feedback. There is debate about whether coarse, global, low spatial frequencies (LSFs) provide predictive information to high cortical levels through the rapid magnocellular (M) projection of the visual path, enabling top-down prediction of possible object identities. To test the “Fast M” hypothesis, we compared detection of a named target across five stimulus conditions: unaltered colour, blurred colour, greyscale, thresholded monochrome, and LSF pictures. The pictures were presented for 13–80?ms in six-picture rapid serial visual presentation (RSVP) sequences. Blurred, monochrome, and LSF pictures were detected less accurately than normal colour or greyscale pictures. When the target was named before the sequence, all picture types except LSF resulted in above-chance detection at all durations. Crucially, when the name was given only after the sequence, performance dropped and the monochrome and LSF pictures (but not the blurred pictures) were at or near chance. Thus, without advance information, monochrome and LSF pictures were rarely understood. The results offer only limited support for the Fast M hypothesis, suggesting instead that feedforward processing is able to activate conceptual representations without complementary reentrant processing.     

Trust in organization as a moderator of the relationship between self‐efficacy and workplace outcomes: A social cognitive theory‐based examination

Drawing on a social cognitive theory perspective, we contend that an employee's trust in oneself, or self‐efficacy, will interact with the individual's trust in the system, or trust in organization, to predict job attitudes and behaviours. Specifically, we expected that self‐efficacy would have stronger effects on job attitudes (job satisfaction and turnover intentions) and behaviours (task performance and organizational citizenship behaviours) to the degree to which employees perceive high levels of trust in organization. Using data collected from 300 employees and their respective supervisors at a manufacturing organization in Turkey across three waves, we found that self‐efficacy had more positive effects on job satisfaction, task performance, and citizenship behaviours when trust in organization was high. Interestingly, self‐efficacy had a positive effect on turnover intentions when trust in organization was low, indicating that high trust in organization buffered the effects of self‐efficacy on intentions to leave. The results suggest that the motivational value of trust in oneself is stronger to the degree to which employees also have high trust in the system, whereas low trust in system neutralizes the motivational benefits of self‐efficacy.

Practitioner points

• Practicing managers should not only invest in increasing self‐efficacy of their employees, but also invest in building trust to improve employees’ attitudes, behaviours, and performance. This is because when employee trust in organization is high, employee self‐efficacy has greater potential to have a positive influence over job satisfaction, task performance, and organizational citizenship behaviours.
• Self‐efficacy may actually increase an employee's desire to leave the organization when organizational conditions are unfavourable, such as in the case of low trust in the organization. Practicing managers should be aware that employees who have high levels of confidence may be at higher risk of turnover when they are unhappy with the organization.

     

Satisfaction,loyalty and word of mouth within the customer base of a utility provider: differences between stayers,switchers and referral switchers

Research on satisfaction, loyalty and word of mouth (WOM) behaviour has made considerable progress within recent years, but important aspects remain neglected. In this paper, it is argued that, within the customer base of service providers, certain groups can be identified which differ from each other with regards to these variables. Hypotheses are developed and tested in a sample of 765 clients of a large German energy provider. The results show that recently acquired customers (switchers) differ from long‐term customers (stayers), and that switchers acquired through customer referrals differ from switchers recruited through advertising or direct mail in their satisfaction, loyalty and WOM behaviour. The paper ends with some important implications for management and future research. Copyright © 2004 Henry Stewart Publications Ltd.     

An experimental investigation of justice-based service recovery on customer satisfaction, loyalty, and word-of-mouth intentions

Service recovery is related to many important organizational outcomes such as customer satisfaction, loyalty, and profitability. Within the theoretical framework of organizational justice, an experiment using a simulated "live" service failure was used to assess the effects of justice-based service-recovery strategies on customer satisfaction, loyalty, positive word-of-mouth intentions, and negative word-of-mouth intentions. Analysis indicated that strategies including interactional justice, distributive justice, and a combination of these were equally effective in maintaining customer satisfaction, loyalty, and positive word of mouth, and minimizing negative word of mouth after a service failure. No support for the service recovery paradox, that is, increased satisfaction following service failure and recovery compared to never having a problem, was found. Satisfaction and loyalty for those in the failure conditions were equal to, although not higher than, in the no-failure control condition. Practical implications for organizational practices are discussed.