Multi-attribute Analysis of Confidence, Convenience and Price Functions of Customers of Financial Services Firms: a GLS Systems Model

The purpose of the study is to examine significant attributes of customers for explaining the level of confidence, convenience and affordability of services offered by financial service firms (FSFs). A GLS systems model is applied to cross sectional survey data in Dubai. Earnings stability, reliability and liquidity were found to be significant attributes to explain the satisfaction and confidence of customers across FSFs. Results indicate that: core, tangible and relational attributes besides ambience and ATM network were significant attributes that positively influenced the customers’ satisfaction and convenience of FSFs. Home loans, credit cards, savings accounts, term deposits and insurance services were significant products that were affordable and valued by customers. The systems model was validated using holdout sample. The customers’ confidence and convenience functions had a reliability of 92 to 94 percent while the value function had a reliability of 74 percent. The study findings have implications on FSFs’ customer relationship management, customer insight and production/transaction processing competencies.