Skip to main content
SpringerLink
Log in

Factors that affect consumers' cross-buying intention: A model for financial services

  • Analysis Paper
  • Published:
Journal of Financial Services Marketing Aims and scope Submit manuscript

Abstract

Cross-buying behaviour in retail banking is receiving increasing research attention. Most studies on relationship development however revolve around relationship depth and length, while there has been hardly any work on the factors that affect relationship breadth. This research proposes and subsequently tests through structural equation modelling a model of factors that affect customers' intention of cross-buying retail financial services. The study yielded rich research results. Most notably, it demonstrated the centrality of image and trust in the formation of cross-buying intention and also showed that customers' cross-buying intention is formed by a combination of interrelationships among the four variables in the model, which should all act simultaneously.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Figure 1
Figure 2

Similar content being viewed by others

References

  • Berry, L. L., Futrell, C. M. and Bowers, M. R. (1985) ‘Bankers Who Sell: Improving Selling Effectiveness in Banking’, Dow Jones-Irwin, Homewood, IL.

  • Bird, A. and Bradshaw, S. J. (1996) ‘Creating a relationship-based sales culture (managing the transition from savings and loan association to commercial bank)’, American Banker, Vol. 161, No.102, p. 9.

    Google Scholar 

  • Letourneau, T. (1997) ‘Surviving and thriving in a sales culture’, Bank Marketing, Vol. 29, No.7, p. 104.

    Google Scholar 

  • Richardson, L. (1992) ‘Bankers in the Selling Role’, 2nd edn, John Wiley & Sons, USA.

  • Crosby, L. A. (2002) ‘Exploding some myths about customer relationship management’, Managing Service Quality, Vol. 12, No.5, pp. 271–277.

    Article  Google Scholar 

  • Harrison, T. S. (1994) ‘Mapping customer segments for personal financial services’, International Journal of Bank Marketing, Vol. 12, No.8, pp. 17–25.

    Article  Google Scholar 

  • Ennew, C. T. and Waite, N. (2007) ‘Financial Services Marketing’, Butterworth-Heinemann, Oxford, UK.

  • Bolton, R. N., Lemon, K. N. and Verhoef, P. C. (2004) ‘The theoretical underpinnings of customer asset management: A framework and propositions for future research’, Journal of the Academy of Marketing Science, Vol. 32, No.3, pp. 271–293.

    Article  Google Scholar 

  • Bolton, R. N. (1998) ‘A dynamic model of the duration of the customer's relationship with a continuous service provider: The role of satisfaction’, Marketing Science, Vol. 17, No.1, pp. 45–65.

    Article  Google Scholar 

  • Bolton, R. N., Kannan, P. K. and Bramlett, M. D. (2000) ‘Implications of loyalty program membership and service expreiences for customer retention and value’, Journal of the Academy of Marketing Science, Vol. 28, No.1, pp. 95–108.

    Article  Google Scholar 

  • Bolton, R. N. and Lemon, K. N. (1999) ‘A dynamic model of customers' usage of services: Usage as an antecedent and consequence of satisfaction’, Journal of Marketing Research, Vol. 36, pp. 171–186.

    Article  Google Scholar 

  • Aksin, O. Z. and Harker, P. T. (1999) ‘To sell or not to sell — Determining the trade-offs between service and sales in retail banking phone centres’, Journal of Service Research, Vol. 2, No.1, pp. 19–33.

    Article  Google Scholar 

  • Jarrar, Y. F. and Neely, A. (2002) ‘Cross-selling in the financial sector: Customer profitability is key’, Journal of Targeting, Measurement and Analysis for Marketing, Vol. 10, No.3, pp. 282–297.

    Article  Google Scholar 

  • Sheth, J. N. and Parvatiyar, A. (1995) ‘Relationship marketing in consumer markets: Antecedents and consequences’, Journal of the Academy of Marketing Science, Vol. 23, No.4, pp. 255–271.

    Article  Google Scholar 

  • Sharma, N. and Patterson, P. G. (1999) ‘The impact of communication effectiveness and service quality on relationship commitment in consumer, professional services’, The Journal of Services Marketing, Vol. 13, No.2, pp. 151–170.

    Article  Google Scholar 

  • Reinartz, W. J. and Kumar, V. (2003) ‘The impact of customer relationship characteristics on profitable lifetime duration’, Journal of Marketing, Vol. 67, pp. 77–99.

    Article  Google Scholar 

  • Beatty, S. E., Mayer, M., Coleman, J. E., Reynolds, K. E. and Lee, J. (1996) ‘Customer–sales associate retail relationships’, Journal of Retailing, Vol. 72, No.3, pp. 223–247.

    Article  Google Scholar 

  • Hallowell, R. (1996) ‘The relationships of customer satisfaction, customer loyalty, and profitability: An empirical study’, International Journal of Service Industry Management, Vol. 7, No.4, pp. 27–42.

    Article  Google Scholar 

  • Gwinner, K. P., Gremler, D. D. and Bitner, M. J. (1998) ‘Relationship benefits in services industries: The customer's perspective’, Journal of the Academy of Marketing Science, Vol. 26, No.2, pp. 101–114.

    Article  Google Scholar 

  • Selnes, F. (1998) ‘Antecedents and consequences of trust and satisfaction in buyer–seller relationships’, European Journal of Marketing, Vol. 32, No.3/4, pp. 305–322.

    Article  Google Scholar 

  • Goode, M. M. H., Moutinho, L. A. and Chien, C. (1996) ‘Structural equation modelling of overall satisfaction and full use of services for ATMs’, International Journal of Bank Marketing, Vol. 14, No.7, pp. 4–11.

    Article  Google Scholar 

  • Van den Poel, D. and Leunis, J. (1998) ‘Database marketing modelling for financial services using hazard rate models’, The International Review of Retail, Distribution and Consumer Research, Vol. 8, No.2, pp. 243–257.

    Article  Google Scholar 

  • Ngobo, P. V. (2004) ‘Drivers of customers' cross-buying intentions’, European Journal of Marketing, Vol. 38, No.9/10, pp. 1129–1157.

    Article  Google Scholar 

  • Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E. and Tatham, R. L. (2006) ‘Multivariate Data Analysis’, 6th edn, Pearson-Prentice-Hall, New Jersey.

  • Bollen, K. A. and Long, J. S. (1992) ‘Tests for structural equation models’, Sociological Methods and Research, Vol. 21, No.2, pp. 123–131.

    Article  Google Scholar 

  • Schumacker, R. E. and Lomax, R. G. (2004) ‘A Beginner's Guide to Structural Equation Modeling’, 2nd edn, Lawrence Erlbaum Associates, New Jersey.

  • Crosby, L. A., Evans, K. R. and Cowles, D. (1990) ‘Relationship Quality in services selling: An interpersonal influence perspective’, Journal of Marketing, Vol. 54, pp. 68–81.

    Article  Google Scholar 

  • Verhoef, P. C., Franses, F. H. and Hoekstra, J. C. (2001) ‘The impact of satisfaction and payment equity on cross-buying: A dynamic model for a multi-service provider’, Journal of Retailing, Vol. 77, pp. 359–378.

    Article  Google Scholar 

  • Kamakura, W. A., Wedel, M., de Rosa, F. and Mazzon, J. A. (2003) ‘Cross-selling through database marketing: A mixed data factor analyzer for data augmentation and prediction’, International Journal of Research in Marketing, Vol. 600, pp. 1–21.

    Google Scholar 

  • Polonsky, M. J., Cameron, H., Halstead, S., Ratcliffe, A., Stilo, P. and Watt, G. (2000) ‘Exploring companion selling: Does the situation affect customers' perceptions?’ International Journal of Retail & Distribution Management, Vol. 28, No.1, pp. 37–45.

    Article  Google Scholar 

  • Ennew, C. and Hartley, M. (1996) ‘Financial advisers and savings and investment products’, in Buttle, F. (ed) ‘Relationship Marketing: Theory and Practice’, Chapman, London.

  • Burand, C. (2001) ‘Beware the pitfalls of cross-selling’, National Underwriter (Property & Casualty/Risk & Benefits Management Edition, Vol. 105 No.38, p. 19.

    Google Scholar 

  • Green, P. L. (2002) ‘Non-stop growth in one-stop banking’, Global Finance, Vol. 16, No.3, p. 35.

    Google Scholar 

  • Bergendahl, G. (1995) ‘The profitability of bancassurance for European banks’, International Journal of Bank Marketing, Vol. 13, No.1, pp. 17–28.

    Article  Google Scholar 

  • Coughlan, A. T. (1987) ‘Distribution channel choice in a market with complementary goods’, International Journal of Research in Marketing, Vol. 4, No.2, pp. 85–97.

    Article  Google Scholar 

  • Storbacka, K., Strandvik, T. and Grönroos, C. (1994) ‘Managing customer relationships for profit: The dynamics of relationship quality’, International Journal of Service Industry Management, Vol. 5, No.5, pp. 21–38.

    Article  Google Scholar 

  • Bendapudi, N. and Berry, L. L. (1997) ‘Customers' motivations for maintaining relationships with service providers’, Journal of Retailing, Vol. 73, No.1, pp. 15–37.

    Article  Google Scholar 

  • Verhoef, P. C., Franses, P. H. and Hoekstra, J. C. (2000) ‘The effect of relational constructs on relationship performance: Does duration matter?’ ERIM Report Series Research In Management, ERS-2000-08-MKT, Erasmus Universiteit, Rotterdam.

  • Verhoef, P. C., Frances, P. H. and Hoekstra, J. C. (2002) ‘The effect of relational constructs on customer referrals and number of services purchased from a multiservice provider: Does age of relationship matter?’ Journal of the Academy of Marketing Science, Vol. 30, No.3, pp. 202–216.

    Article  Google Scholar 

  • Bloemer, J., Brijs, T., Swinnen, G. and Vanhoof, K. (2002) ‘Identifying latently dissatisfied customers and measures for dissatisfaction management’, International Journal of Bank Marketing, Vol. 20, No.1, pp. 27–37.

    Article  Google Scholar 

  • Saunders, J. and Watters, R. (1993) ‘Branding financial services’, International Journal of Bank Marketing, Vol. 11, No.6, pp. 32–38.

    Article  Google Scholar 

  • Nguyen, N. and LeBlanc, G. (1998) ‘The mediating role of corporate image on customers' retention decisions: An investigation in financial services’, International Journal of Bank Marketing, Vol. 16, No.2, pp. 52–65.

    Article  Google Scholar 

  • Aaker, D., Kumar, V. and Day, G. (1998) ‘Marketing Research’, 6th edn, John Wiley & Sons Inc., New York.

  • Chisnall, P. (2001) ‘Marketing Research’, 6th edn, McGraw-Hill, England.

  • http://www.statistics.gr.

  • Tam, J. L. M. and Wong, Y. H. (2001) ‘Interactive selling: A dynamic framework for services’, Journal of Services Marketing, Vol. 15, No.5, pp. 379–396.

    Article  Google Scholar 

  • Foster, B. D. and Cadogan, J. W. (2000) ‘Relationship selling and customer loyalty: An empirical investigation’, Marketing Intelligence and Planning, Vol. 18, No.4, pp. 185–199.

    Article  Google Scholar 

  • Lewis, B. R. and Soureli, M. (2006) ‘The antecedents of consumer loyalty in retail banking’, Journal of Consumer Behaviour, Vol. 5, pp. 15–31.

    Article  Google Scholar 

  • Jamal, A. and Naser, K. (2002) ‘Customer satisfaction and retail banking: An assessment of some of the key antecedents of customer satisfaction in retail banking’, International Journal of Bank Marketing, Vol. 20, No.4, pp. 146–160.

    Article  Google Scholar 

  • Nguyen, N. and Leblanc, G. (2001) ‘Corporate image and corporate reputation in customers' retention decisions in services’, Journal of Retailing and Consumer Services, Vol. 8, pp. 227–236.

    Article  Google Scholar 

  • Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E. and Tatham, R. L. (1995) ‘Multivariate Data Analysis: With readings’, Prentice-Hall, Englewood Cliffs, London.

  • Hoyle, R. H. (1995) ‘The structural equation modeling approach: Basic concepts and fundamental issues’, in Hoyle R. H. (ed) ‘Structural Equation Modeling: Concepts, Issues and Applications’, Sage Publications, Thousand Oaks.

  • Diamantopoulos, A. and Siguaw, J. A. (2000) ‘Introducing LISREL’, Sage Publications, London.

  • Fornell, C. and Larcker, D. F. (1981) ‘Evaluating structural equation models with unobservable variables and measurement error’, Journal of Marketing Research, Vol. 18, pp. 39–50.

    Article  Google Scholar 

  • Steenkamp, J. -B. E. M. and van Trijp, H. C. M. (1991) ‘The use of LISREL in validating marketing constructs’, International Journal of Research in Marketing, Vol. 8, pp. 283–299.

    Article  Google Scholar 

  • Arbuckle, J. L. and Wothke, W. (1999) ‘AMOS 4.0 User's Guide’, SmallWaters Corporation, Chicago.

  • Baumgartner, H. and Homburg, C. (1996) ‘Applications of structural equation modeling in marketing and consumer research: A review’, International Journal of Research in Marketing, Vol. 13, pp. 139–161.

    Article  Google Scholar 

  • Hu, L. and Bentler, P. M. (1999) ‘Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives’, Structural Equation Modelling, Vol. 6, pp. 1–55.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. 25 Panepistimiou Str., Athens, 10564, Greece

    Magdalini Soureli, Barbara R Lewis & Kalipso M Karantinou

Authors
  1. Magdalini Soureli
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Barbara R Lewis
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Kalipso M Karantinou
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Magdalini Soureli.

Additional information

1works for the Marketing Department of ATEbank. She holds a BSc in Marketing from Athens University of Economics and Business, an MSc in Marketing from UMIST (UK) and she recently graduated from the University of Manchester (UK), where she finished her PhD in Management Studies. She has already published a number of articles in Journal of Consumer Behaviour, Journal of Financial Services Marketing, and Managing Service Quality and she has been an active presenter at several conferences.

2has been Professor of Marketing in the Manchester Business School, University of Manchester. She obtained a BSc from Manchester University, an SM degree from the Sloan School of Management at MIT and her PhD from Manchester. Her teaching and research interests focus on marketing in service sector industries. She has particular expertise in issues relating to customer service and service quality. She has published over 100 journal articles and conference papers and has served on the editorial boards of several prominent journals.

3(PhD, University of Manchester) is Associate Professor of Marketing at the Graduate School of the American College of Greece. Before taking up this post she was Lecturer in Marketing at the University of Manchester. Her main research interests are in professional and banking services and relationship management. She has published in the Journal of Marketing Management, the Journal of Services Marketing, the Journal of Customer Behavior, and the Marketing Management Journal, among others.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Soureli, M., Lewis, B. & Karantinou, K. Factors that affect consumers' cross-buying intention: A model for financial services. J Financ Serv Mark 13, 5–16 (2008). https://doi.org/10.1057/fsm.2008.1

Download citation

  • Received:

  • Revised:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/fsm.2008.1

Keywords

Search

Navigation