Being new‐customer friendly: determinants of service perceptions in retail banking

Purpose – The purpose of this paper is to study the attributes that influence perceptions of customer service in the retail banking setting from a non‐customer perspective. Design/methodology/approach – This research employs a mystery shopping approach to identify and measure key service attributes that predict the likelihood of an individual's choosing a banking location. Findings – The measures employed accurately predicted positive and negative outcomes based on respondent choices. The data suggest that personal elements of service may be of critical importance in cultivating new customer relationships. Originality/value – Existing research related to bank service primarily focuses on customers in the context of their existing institutional relationship. This study examines a largely unexplored area of service, specifically, the issues most important to prospective customers with regard to banking choices.