Abstract
The wealth management firm meets greater competition in generating customer loyalty after China’s 11 opening-up policy. According to emotional contagion and SOR theory, the effect of employees’ competence on customer loyalty was firstly investigated. Secondly, the mediation effect of customers’ trust was tested. Finally, the moderation effect of employees’ emotional labor perceived by customers was investigated. After tested by Process Macro for SPSS, several results were obtained. Employees’ competence positively predicts customer loyalty, and customers’ trust plays a mediation effect. The deep acting (surface acting) strategy of employees plays a positive (negative) moderation effect in the relationship between employees’ competence and customer trust. Theoretical and managerial implications related to emotional labor and trust were generated.
Highlights
The office of the Financial Stability and Development Commission of the State Council of China issued 11 measures to open up the financial industry to the outside world in July, 2019 (China Economic Net, 2019)
We argue that there is a process before customers become loyal to an enterprise, and employees’ competence needs a mediation mechanism to influence customer loyalty instead of directly
The current study aims to investigate the mechanism of customer loyalty in the wealth management organization from the perspective of emotional labor
Summary
The office of the Financial Stability and Development Commission of the State Council of China issued 11 measures to open up the financial industry to the outside world in July, 2019 (China Economic Net, 2019). Increased loyalty stimulates additional purchases, and loyal customers are less likely to switch brand preferences if competitors offer lower prices (Bowen & Shoemaker, 1998) They can help to keep a dominant position in competition and gain more profit (Geng & Jia, 2014). Creating loyalty for corporate brands has become more challenging due to minimal differentiation among their competitive offerings and similar corporate and organizational values among competitors (Anisimova, 2007; Dawes, Meyer-Waarden, & Driesener, 2015) In this sense, building and maintaining effective relationships with consumers is crucial for gaining customer loyalty (Gbadamosi, 2015). The current study aims to investigate the mechanism of customer loyalty in the wealth management organization from the perspective of emotional labor
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