Volker Seiler, Markus Rudolf and Tim Krume
In this paper the authors aim to study the impact of customer demographics on service value, customer satisfaction, and customer loyalty in the private banking industry, i.e. a…
Abstract
Purpose
In this paper the authors aim to study the impact of customer demographics on service value, customer satisfaction, and customer loyalty in the private banking industry, i.e. a high‐involvement context.
Design/methodology/approach
The authors estimate a structural equation model with the help of partial least squares (PLS). In order to examine the influence of socio‐demographic variables, they conduct an analysis of variance (ANOVA) to test for differences in the means of the constructs. Furthermore, they conduct an analysis of mediation to test for an indirect influence of service value on customer loyalty.
Findings
The authors find that customer satisfaction has a strong positive impact on customer loyalty. However, service value has no significant direct effect on customer loyalty; the impact of service value on customer loyalty is completely mediated by customer satisfaction. With regards to customer demographics, the authors find significant differences in mean scores as to employment status, type of private banking service provider, and size of liquid assets.
Research limitations/implications
Further research should analyse potential moderating effects of different customer‐related variables. A replication study should be conducted in order to underline the authors’ findings.
Practical implications
The authors find significant differences for customer satisfaction and customer loyalty ratings as to employment status and size of liquid assets. Hence, managers should focus on high net worth and ultra high net worth individuals as these segments show higher satisfaction and loyalty ratings. Furthermore, customers should be segmented as to employment status in addition to size of liquid assets.
Originality/value
The authors conduct their analysis in a high‐involvement setting. Using a unique sample of 286 questionnaires of private banking customers, they find direct effects of socio‐demographic variables on service value, customer satisfaction, and customer loyalty. Thus, the authors’ findings have important implications for managers in the private banking industry and marketing researchers alike.
Details
Keywords
Yu-Cheng Lin, Chyi Lin Lee and Graeme Newell
Recognising that different property sectors have distinct risk-return characteristics, this paper assesses whether changes in the level and volatility of short- and long-term…
Abstract
Purpose
Recognising that different property sectors have distinct risk-return characteristics, this paper assesses whether changes in the level and volatility of short- and long-term interest rates differentially affected excess returns of sector-specific Real Estate Investment Trusts (REITs) in the Pacific Rim region between July 2006 and December 2018. The strategic property risk management implications for sector-specific REITs are also identified.
Design/methodology/approach
Daily excess returns between July 2006 and December 2018 are used to analyse the sensitivity in the level and volatility of interest rates for REITs among office, retail, industrial, residential and specialty REITs across the USA, Japan, Australia and Singapore. The generalised autoregressive conditionally heteroskedastic in the mean (GARCH-M) methodology is employed to assess the linkage between interest rates and excess returns of sector-specific REITs.
Findings
Compared with diversified REITs, sector-specific REITs were less sensitive to short- and long-term interest rate changes across the USA, Japan, Australia and Singapore between July 2006 and December 2018. Of sector-specific REITs, retail and residential REITs were susceptible to interest rate movements over the full study period. On the other hand, office and specialty REITs were generally less sensitive to changes in the level and volatility of short- and long-term interest rate series across all markets in the Pacific Rim region. However, the interest rate sensitivity of industrial REITs was somewhat mixed. This sector was sensitive to interest rate movements, but no comparable evidence was found since the onset of GFC.
Practical implications
The insignificant exposure to interest rate risk of sector-specific REITs may imply that they have a stronger interest rate risk aversion and greater hedging benefits than their diversified counterparts, particularly for office and specialty REITs. The results support the existence of REIT specialisation value in the Pacific Rim region from the interest rate risk management perspective. This is particularly valuable to international property investors constructing and managing portfolios with REITs in the region. Property investors are advised to be aware of the disparities in the magnitude and direction of sensitivity to the interest rate level and volatility of REITs across different property sectors and various markets in the Pacific Rim region. This study is expected to enhance property investors' understanding of interest rate risk management for different property types of REITs in local, regional and international investment portfolios.
Originality/value
The study is the first to assess the interest rate sensitivity of REITs across different property sectors and various markets in the Pacific Rim region. More importantly, this is the first paper to offer empirical evidence on the existence of specialisation value in the Pacific Rim REIT markets from the aspect of interest rate sensitivity. This research may enhance property investors' understanding of the varying interest rate sensitivity of different property types of REITs across the USA, Japan, Australia and Singapore.