Examining determinants of cross buying behaviour in retail banking

Abstract

Purpose – The purpose of this paper is to examine the drivers of the customers’ cross-buying intentions for retail banking services in Hong Kong. Design/methodology/approach – The research model was developed based on literature and tested empirically among 269 customers of retail banks in Hong Kong. Structural equation modelling was used to test the system of relationships. Findings – The results indicate that the customers’ cross-buying intentions are primarily associated with image conflicts about the provider’s abilities to deliver high quality financial services from different activities and high levels of customer loyalty. Research limitations/implications – The research is limited to a single country focus of Hong Kong retail banking. The generalizibility of these findings is therefore limited to this context. Practical implications – The findings of the study have important implications for academicians in understanding what drives cross-buying behaviour as well as retail bank practitioners to help design more effective cross-buying strategies. Originality/value – The authors show that perceived image conflict and customer loyalty directly influences cross-buying intentions and that cross-buying intentions is not affected by dimensions of relationship quality directly. However, relationship quality dimensions was found to influence customer loyalty and play an important indirect role in unlocking cross-buying intentions.