This study investigates the impact of financial vulnerability on customer engagement and satisfaction within the South African banking sector under a persistent inflation and prolonged contractionary monetary policy environment.
The relationships examined were hypothesized based on the SABI
model, which underpins the functional analysis of interactions provided by the
interdependence theory. Utilizing a structural equation modeling approach, data
were collected from 314 bank customers through the questionnaire method. The
analysis reveals a significant and positive relationship between financial
vulnerability and customer engagement (p < 0.05), indicating that customers
with lower financial resilience engage more with their banks. Furthermore, a
direct and significant link (p < 0.05) between financial vulnerability and
customer satisfaction suggests that current financial hardships do not diminish
overall satisfaction levels. However, a positive relationship between customer
engagement and customer satisfaction is not statistically significant,
suggesting that customer interactions were not a determining factor of their
satisfaction level. These findings imply that monetary policymakers and banks
should adapt their strategies to support financially vulnerable customers,
promote customer engagement, and thus enhance bank-customer long-term
relationships. However, the study is limited by the demographic scope of the
sample, necessitating further research to validate these insights across diverse
customer segments.
Author
(s) Details
Sophie Kasse-Kengne
Cape Peninsula University of Technology, South Africa.
Please see the book here:- https://doi.org/10.9734/bpi/mono/978-93-49238-53-4/CH4
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