Open AccessFront-Line Employees’ Recognition And Empowerment Effect On Retail Bank Customers’ Perceived Value
Author(s) -
Vida Škudienė,
Dallas D. Everhart,
Karolina Šlepikaitė,
James Reardon
Publication year - 2013
Publication title -
journal of service science
Language(s) - English
Resource type - Journals
eISSN - 1941-4730
pISSN - 1941-4722
DOI - 10.19030/jss.v6i1.8241
Subject(s) - business , empowerment , marketing , retail banking , competition (biology) , front line , value (mathematics) , service (business) , competitive advantage , customer retention , service quality , economics , ecology , machine learning , political science , computer science , law , biology , economic growth
Understanding how front-line bank employee recognition and empowerment impacts customer value is an important issue for the banking industry. Retail banking customers perceive little difference in services as competition has created more choices. When banks develop new products, they are easily duplicated by the competition. Banks can gain a competitive advantage by understanding the interrelationships that impact customers perceived value. The major providers of customer perceived value in retail banking are front-line employees. This research aims to better understand these interrelationships and examine how front-line retail bank employee recognition and empowerment relate to retail bank customer perceived value. Customers perceived value is defined in terms of relationship, social, emotional, service and empowerment. Survey findings illustrate that retail banks should concentrate more on employee recognition and empowerment to impact customers perceived value. According to the findings of the survey, front-line employee recognition and empowerment has a positive impact on customers perceived value.