Understanding the role of web-benefits in cross-buying

Abstract

This study seeks to develop and test a framework for understanding the direct and indirect effect of web-benefits derived from bank on cross-buying of financial services. The purpose of this paper further includes exploring the mediating role of switching costs on the inter-relationships between web-benefits, relationship quality, and cross-buying intentions. The theoretical framework is developed on the logic of prior research that technology affects the customer-firm relationships and relationships influence the purchasing intentions of customers. Research data were collected from banking customers in Rajasthan state. Using bank intercept technique, 347 questionnaires were collected. Structural equation modelling was applied to examine the relationships among the constructs. Findings suggest that web-benefits provided by the bank have only indirect effect on the cross-buying intentions through switching costs. Results also revealed that the higher the perceived switching costs and relationship quality, the higher the cross-buying intentions.