Impact of customers' digital banking adoption on hidden defection: A combined analytical-empirical approach

Cited 2 time in webofscience Cited 0 time in scopus
  • Hit : 90
  • Download : 0
The implementation of digital channels as avenues for economic transactions (e.g., online and mobile banking/FinTech) has shifted the paradigm of customer-bank interactions, providing unprecedented opportunities for both parties. The prevailing belief is that digital banking has several advantages, such as lower costs and higher information transferability for customers. These benefits can also promote competition between banks given customers' predilection for "multi-homing," or engagement with multiple banks. This study investigated the impact of customers' digital banking adoption on hidden defection, in which customers purchase financial products from competing banks instead of their primary banks. To this end, we developed an analytical model to provide insights into the effects of digital banking adoption while taking customers' multi-homing behaviors into consideration. We then conducted a series of empirical analyses using comprehensive individual-level transaction data to provide evidence of hidden defection. Our findings indicate that customers with higher loyalty exhibit greater hidden defection after digital banking adoption. Customers who engage primarily with personal-service channels (e.g., branches) show stronger hidden defection than do self-service channel (e.g., ATMs) users, and this effect is more prevalent among loyal customers. Our results provide valuable implications for omni-channel services in a market characterized by multi-homing behavior of customers.
Publisher
WILEY
Issue Date
2020-06
Language
English
Article Type
Article
Citation

JOURNAL OF OPERATIONS MANAGEMENT, v.66, no.4, pp.418 - 440

ISSN
0272-6963
DOI
10.1002/joom.1066
URI
http://hdl.handle.net/10203/276119
Appears in Collection
MT-Journal Papers(저널논문)
Files in This Item
There are no files associated with this item.
This item is cited by other documents in WoS
⊙ Detail Information in WoSⓡ Click to see webofscience_button
⊙ Cited 2 items in WoS Click to see citing articles in records_button

qr_code

  • mendeley

    citeulike


rss_1.0 rss_2.0 atom_1.0