Impact of self-service technologies in retail banking on cross-buying and word-of-mouth

Purpose: The purpose of this research is to study the influence of self-service technologies (SST) on cross-buying and word-of-mouth. This study tests the direct impact of perceived usefulness and perceived ease of use on cross-buying and word-of-mouth. Further, this study also tests the mediating role of e-service quality for the aforementioned relationships. The study has been undertaken in the context of retail banking in an emerging market, India. Design/methodology/approach: A cross-sectional survey research design was used to collect data from 235 customers of retail banks in India. The data were analysed using IBM AMOS 23.0 taking structural equation modelling (SEM) approach to test the hypothesised relationships. Findings: The findings of the study suggest that both perceived usefulness and perceived ease of use influence cross-buying and word-of-mouth. E-service quality partially mediates the relationship between perceived usefulness on cross-buying and word-of-mouth. E-service quality partially mediates the relationship between perceived ease of use and cross-buying but does not mediate the relationship between perceived ease of use and word-of-mouth. Practical implications: This study shows that managers need to focus on perceived usefulness and perceived ease of use in order to ensure cross-buying and promote word-of-mouth recommendations by customers. Also, managers will be able to enhance cross-buying and promote word-of-mouth recommendations if e-service quality delivered by the bank is perceived to be good by customers. Originality/value: This study contributes to the literature on SST and offers empirical evidence to show that perceived usefulness and perceived ease of use can influence cross-buying as well as word-of-mouth. Previous studies have shown that SST usage can foster loyalty, and the present study offers new evidence on the outcomes of behavioural loyalty. The study has been undertaken through responses taken from retail bank customers in an emerging market. This study also contributes to the literature on SST by testing the mediating effect of e-service quality for the above-mentioned relationships.