Customer Empowerment and Engagement Behaviours Influencing Value for FinTech Customers: An Empirical Study from India
Articles
Archana Nayak Kini
Manipal Institute of Management, Manipal Academy of Higher Education
https://orcid.org/0000-0002-3512-4180
Savitha Basri
Department of Commerce, Manipal Academy of Higher Education
https://orcid.org/0000-0002-0402-403X
Published 2023-05-29
https://doi.org/10.15388/omee.2023.14.83
PDF
HTML

Keywords

Customer engagement behaviour
customer empowerment
experiental marketing
tech-enabled financial services
customer value
e-wom
fintech

How to Cite

Nayak Kini, A. and Basri, S. (2023) “Customer Empowerment and Engagement Behaviours Influencing Value for FinTech Customers: An Empirical Study from India”, Organizations and Markets in Emerging Economies, 14(1(27), pp. 83–109. doi:10.15388/omee.2023.14.83.
Crossref
Scopus
Google Scholar
Europe PMC
Vol. 14 No. 1(27) (2023)

Customer Empowerment and Engagement Behaviours Influencing Value for FinTech Customers: An Empirical Study from India

Abstract

The article aims to study the impact of consumer empowerment on customer engagement behaviours (CEBs) and their effect on customer value in the FinTech industry of India. A cross-sectional analytical study was carried out to collect data from 380 Indian FinTech app users using a survey questionnaire. The Partial Least Square Structural Equation Modelling (PLS-SEM) method was applied to test the conceptual model. This is one of the first research studies during the COVID-19 pandemic to show that customer-empowered behaviours predict positive CEBs such as reviews and testimonials, which then contribute to customer value. The indirect effects indicate that CEB mediates the relationship between customer empowerment and value. This study also operationalizes and validates customer engagement behaviour as a formative higher-order construct formed by four dimensions such as customers’ social media influence, form/modality, the scope and channel of engagement. To create customer value, FinTech practitioners and e-marketers should foster online communities and identify and manage customers’ need for control and empowerment for a particular service or product under study thus guiding them in designing customized marketing strategies. The study directs academicians and researchers to build engagement models that can enforce positive CEBs namely e-word of mouth, customer reviews and testimonials.

PDF
HTML

References

Anderson, C. & J. L. Berdahl. (2002). The Experience of Power: Examining the Effects of Power on Approach and Inhibition Tendencies. Journal of Personality and Social Psychology, 83(6), 1362–1377. https://doi.org/ 10.1037/0022-3514.83.6.1362
Bonsu, S. K. & Darmody, A. (2008). Co-creating Second Life: Market Customer Cooperation in Contemporary Economy. Journal of Macromarketing, 28(4), 355–368. https://doi.org/10.1177/0276146708325396
Chandler, J. D. and R. F. Lusch. (2015). Service Systems: A Broadened Framework and Research Agenda on Value Propositions, Engagement, and Service Experience. Journal of Service Research, 18(1), 6–22. https://doi.org/10.1177/1094670514537709
De Matos, C. A. & Rossi, C. A. V. (2008). Word-of-mouth communications in marketing: a meta-analytic review of the antecedents and moderators. Journal of the Academy of marketing science, 36(4), 578-596. https://doi.org/10.1007/s11747-008-0121-1
Ernst & Young (2017). EY FinTech Adoption Index- The rapid emergence of FinTech. https://www.ey.com/en_in/ey-global-fintech-adoption-index, FILE/ ey-global-fintech-adoption-index-2019.pdf (Accessed 14 September 2021)
Flavián, C., Ibáñez-Sánchez, S. & Orús, C., (2019). The impact of virtual, augmented and mixed reality technologies on the customer experience. Journal of business research, 100, 547-560.https://doi.org/10.1016/j.jbusres.2018.10.050
Goyal, E. & Srivastava, S. (2015). Study on Customer Engagement Model-Banking Sector. SIES Journal of Management, 11(1)
Hair, J.F., Hult, G.T.M., Ringle, C.M. & Sarstedt, M., (2013). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Sage, Thousand Oaks
Han, X., Fang, S., Xie, L. & Yang, J. (2019). Service fairness and customer satisfaction. Journal of Contemporary Marketing Science, 22(4), 482-498. https://doi.org/10.1108/JCMARS-01-2019-0003
Hoang, D. P. (2019). The central role of customer dialogue and trust in gaining bank loyalty: an extended SWICS model. International Journal of Bank Marketing, 37(3), 711-729. https://doi.org/10.1108/IJBM-03-2018-0069
Hollebeek, L. (2011). Exploring customer brand engagement: definition and themes. Journal of Strategic Marketing, 19(7), 555-573. https://doi.org/10.1080/0965254X.2011.599493
Hollebeek, L. D. (2013). The customer engagement/value interface: An exploratory investigation. Australasian Marketing Journal (AMJ), 21(1), 17-24.
https://doi.org/10.1016/j.ausmj.2012.08.006
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the academy of marketing science, 43(1), 115-135.
Henseler, J. Ringle, C. M. & Sarstedt, M. (2012). Using partial least squares path modeling in advertising research: basic concepts and recent issues. Handbook of research on international advertising, Edward Elgar Publishing, 252
Henson, R. K. (2001). Understanding internal consistency reliability estimates: A conceptual primer on coefficient alpha. Measurement and evaluation in counseling and development, 34 (3), 177-189.
Hulland, J. (1999). Use of partial least squares (PLS) in strategic management research: a review of four recent studies. Strategic Management Journal, 20(2), 195–204.
https://doi:10.1002/(sici)1097-0266(199902)20:2<195::aid-smj13>3.0.co;2-7
Jaakkola, E. & Alexander, M. (2014). The role of customer engagement behavior in value co-creation: a service system perspective. Journal of service research, 17(3), 247-261.
https://doi.org/10.1177/1094670514529187
Jaakkola, E., and T. Hakanen. (2013). Value Co-creation in Solution Networks. Industrial Marketing Management, 42(1), 47–58. https://doi.org/10.1016/j.indmarman.2012.11.005
Kumar, V., Aksoy, L., Donkers, B., Venkatesan, R., Wiesel, T. & Tillmanns, S. (2010). Undervalued or overvalued customers: Capturing total customer engagement value. Journal of service research, 13(3), 297-310. https://doi.org/10.1177/1094670510375602
Kumar, V. & Pansari, A. (2016). Competitive advantage through engagement. Journal of marketing research, 53(4), 497-514. https://doi.org/10.1509/jmr.15.0044
Lee, I. & Shin, Y. J. (2018). Fintech: Ecosystem, business models, investment decisions, and challenges. Business horizons, 61(1), 35-46. https:///doi:10.1016/j.bushor.2017.09.003
Lemon, K.N., Rust, R.T. & Zeithaml, V.A., (2001). What drives customer equity?. Marketing management, 10(1), 20-25.
Minazzi, R. (2015). Social Media Marketing in Tourism and Hospitality. Cham, Switzerland: Springer International Publishing.
Moe, W. W., & M. Trusov (2011). The Value of Social Dynamics in Online Product Ratings Forums. Journal of Marketing Research, 48(3), 444–456. https://doi.org/10.1509/jmkr.48.3.444
Moliner-Tena, M. A., Monferrer-Tirado, D. and Estrada-Guillén, M. (2019). Customer engagement, non-transactional behaviors and experience in services: A study in the bank sector. International Journal of Bank Marketing, 37(3), 730-754. https://doi.org/10.1108/IJBM-04-2018-0107
Moliner, M. Á., Monferrer-Tirado, D. & Estrada-Guillén, M. (2018). Consequences of customer engagement and customer self-brand connection. Journal of Services Marketing, 32 (4), 387-399. https://doi.org/10.1108/JSM-08-2016-0320
Morrongiello, C., N’Goala, G., & Kreziak, D. (2017). Customer psychological empowerment as a critical source of customer engagement. International Studies of Management & Organization, 47(1), 61-87. https://doi.org/10.1080/00208825.2017.1241089
Pansari, A., & Kumar, V. (2017). Customer engagement: the construct, antecedents, and
Consequences. Journal of the Academy of Marketing Science, 45(3), 294-311.
https://doi.org/10.1007/s11747-016-0485-6
Pires, G. D., Stanton, J., & Rita, P. (2006). The internet, consumer empowerment and marketing strategies. European journal of marketing, 40(9/10), 936-949. https://doi.org/10.1108/03090560610680943
Porter, C. E., Donthu, N., MacElroy, W. H., & Wydra, D. (2011). How to foster and sustain engagement in virtual communities. California management review, 53(4), 80-110.
https://doi.10.1525/cmr.2011.53.4.80
Prahalad, C. K., & V. Ramaswamy. (2004). Co-creation Experiences: The Next Practice in Value Creation. Journal of Interactive Marketing, 18(3), 5–14. https://doi.org/10.1002/dir.20015
Sashi, C. M. (2012). Customer engagement, buyer-seller relationships, and social media. Management decision, 50(2), 253-272.https://doi.org/10.1108/00251741211203551
Sheth, J., (2020). Impact of Covid-19 on consumer behavior: Will the old habits return or die?. Journal of business research, 117, 280-283.https://doi.org/10.1016/j.jbusres.2020.05.059
Shin, H., Perdue, R. R., & Pandelaere, M. (2020). Managing customer reviews for value co-creation: An empowerment theory perspective. Journal of Travel Research, 59(5), 792-810.
https://doi.org/10.1177/0047287519867138.
Strauss, J., & Frost, R. (2006). E-Marketing. 6th international edition, Upper Saddle River, NY: Pearson Prentice Hall.
Turnquist, C. (2004). VP value chain services, Syntegra and Stan Elbaum, VP. Strategic Solutions, Aberdeen, available at: www. retailsystems. com/index. cfm.
VanDoorn, J., Lemon, K. N., Mittal, V., Nass, S., Pick, D., Pirner, P. & Verhoef, P. C. (2010) Customer engagement behavior: theoretical foundations and research directions. Journal of service research, 13(5), 253-266. https://doi.org/10.1177/1094670510375599
Vargo, S. L., & R. F. Lusch. (2004). Evolving to a New Dominant Logic for Marketing. Journal of Marketing, 68(1), 1–17. https://doi.org/10.2307/30161971
Vivek, S. D., S. E. Beatty, & R. M. Morgan. (2012). Customer Engagement: Exploring Customer Relationships beyond Purchase. Journal of Marketing Theory and Practice, 20 (2), 122–46. https://10.2753/mtp1069-6679200201
Vivek, S. D., Beatty, S. E., Dalela, V., & Morgan, R. M. (2014). A generalized multidimensional scale for measuring customer engagement. Journal of Marketing Theory and Practice, 22(4), 401-420. https://doi.org/10.2753/MTP1069-6679220404
Wu, L., A. S. Mattila, C. Y. Wang, & L. Hanks. (2016) ‘The Impact of Power on Service Customers’ Willingness to Post Online Reviews’, Journal of Service Research, 19(2), 224–38. https://10.1177/1094670516630623
Youssef, Y.M.A., Johnston, W.J., AbdelHamid, T.A., Dakrory, M.I. & Seddick, M.G.S. (2018). A customer engagement framework for a B2B context. Journal of Business & Industrial Marketing, 33(1), 145-152. https://doi:10.1108/jbim-11-2017-0286