Influence of Customer Experience on Change in Customer Outcome with Mediating Effect of Relationship Quality and Trust in Banking Sector

Abstract

The main purpose of the study is to propose a model for better understanding role of customer experience and its impact on customer outcome in banking sector. In private banks, retail customer’s experience with various banking services, which will highly influence the customer outcomes like brand equity, WOM, Satisfaction. Traditionally various studies tested this hypothesis in an independent manner, in presence of relationship quality and trust. In the present study, along with the direct effect between customer experience and customer outcome, indirect effect is also measured by considering relationship quality and customer trust as mediating constructs. The test results proved that the two mediators had partial mediation effect in the model. For the study, sample respondents have been chosen from twin cities of Hyderabad and Secunderabad. The results of the study indicating that bankers can adopt key strategies to overcome the threat caused by negative face of customer experience.