How to generate loyalty in mobile payment services? An integrative dual SEM-ANN analysis

PurposeThe surging entrance of new mobile payment merchants into the growing market has prompted the need for an in-depth understanding of loyalty formation to retain customers. This study examines customers' loyalty generation process in mobile payment services by exploring the serial effect o...

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Bibliographic Details
Published in:International journal of bank marketing 2023-08, Vol.41 (6), p.1177-1206
Main Authors: Dang, Tri-Quan, Tan, Garry Wei-Han, Aw, Eugene Cheng-Xi, Ooi, Keng-Boon, Metri, Bhimaraya, Dwivedi, Yogesh K.
Format: Article
Language:English
Subjects:
Bank marketing
Brand loyalty
Cognition & reasoning
Consumer behavior
Consumers
Customer services
Emotions
Innovations
Literature reviews
Market strategy
Marketing
Mobile commerce
Technology Acceptance Model
Technology adoption
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Summary:PurposeThe surging entrance of new mobile payment merchants into the growing market has prompted the need for an in-depth understanding of loyalty formation to retain customers. This study examines customers' loyalty generation process in mobile payment services by exploring the serial effect of cognitive drivers (i.e. brand awareness, perceived quality, brand image, perceived value and layout) on affective response, satisfaction and loyalty.Design/methodology/approachA survey using self-administered questionnaires was conducted. The data was collected from 370 consumers who have experience using mobile payment services in Vietnam. The data were submitted to partial least square structural equation modeling (PLS-SEM) and artificial neural networks (ANN) analysis.FindingsThe results indicated that all the proposed cognitive drivers show significant impacts on affective response, which, in turn, translates into satisfaction and loyalty. The post-hoc analysis revealed enjoyment as the vital affective response in determining satisfaction. Moreover, the multigroup analysis indicated that the relationship between affective response and satisfaction is stronger for the female group. In addition, the ANN's nonlinear result revealed complementary insight into the importance of cognitive drivers.OriginalityThe current study revealed both linear and nonlinear mechanisms that explicate the roles of cognitive drivers and affective responses in fostering loyalty toward mobile payment merchants. The findings add to the existing literature that emphasizes consumers' initial mobile payment adoption.
ISSN:0265-2323
1758-5937
DOI:10.1108/IJBM-05-2022-0202