Abstract
The retail banking industry of South Africa has grown in prominence as one of the key pillars driving the country's economic development and growth. For this reason, the industry is highly competitive and profitable but continues to experience challenges related to homogeneity of offerings, increased banking fees and declining retention rates. Interestingly, there is a growing concern among consumers due to a lack of integrated channels that can offer a seamless experience when moving from one service channel to the next. A possible solution to address this is to transition from a multi-channel service offering to an omni-channel service, where the emphasis is on providing a consistent and delightful experience. Omni-channel is beneficial to retail banks as it provides unlimited access to service offerings, consistent communication and personalised interactions. However, extant research shows that there is a lack of knowledge on the factors that promote the actual continued usage of omni-channel within a retail banking environment. It is, therefore, imperative for retail banks to gather insights on the key factors that contribute to actual omni-channel continued usage.
The purpose of this study was to investigate the determinants of actual omni-channel continued usage among consumers in the retail banking industry of South Africa. A systems thinking approach was adopted as a theoretical lens and made use of multidisciplinary theories such as the expectation disconfirmation theory, stimulus-organism-response theory, relationship marketing theory, cognitive appraisal theory and expectation confirmation theory to explain the different factors that contribute to actual omni-channel continued usage. To this end, two conceptual frameworks (Model A and Model B) were proposed to uncover the influence of channel convenience, channel credibility, channel competence, channel customisation, channel accessibility, channel experience, channel engagement, positive anticipatory channel emotions, negative anticipatory channel emotions, perceived channel value, channel satisfaction, overall channel satisfaction, channel delight, overall channel delight, channel integration on actual omni-channel continued usage.
A positivist paradigm and quantitative methodology were followed to gather empirical data for the purpose of this study. An online structured survey was then administered using a three-stage non-probability sampling (judgement, quota and convenience sampling) and a total of 536 complete responses were gathered from retail banking consumers within Gauteng (Johannesburg, Tshwane and Ekurhuleni metros). The collected data were analysed using descriptive and inferential statistics. Furthermore, the hypothesised relationships in Model A (multi-channel approach) and Model B (omni-channel approach), structural equation
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modelling and moderation analysis were performed using IBM SPSS Amos 29 and Jamovi in order to accept or reject the hypotheses.
The main findings from Model A (multi-channel) reveal that channel convenience, channel credibility, channel competence, channel customisation, channel accessibility, channel experience, channel engagement, positive anticipatory channel emotions, negative anticipatory channel emotions, perceived channel value, channel satisfaction, channel delight and actual continued usage are significantly related across the three banking channels. From the perspective of Model B (omni-channel), it was found that interrelationships between overall channel satisfaction, overall channel delight, channel integration and actual omni-channel continued usage exist. These results confirm the robustness and parsimony of the two proposed conceptual frameworks.
A number of strategic recommendations were proposed to retail banks to address the relation between the different factors that promote the actual continued usage of omni-channel. These strategic recommendations emphasised the development and implementation of a customer journey optimisation programme that centres on the use of big data, AI-driven chatbots and voice assistants, motivational and training sessions, personalised communication, gathering research and omni-channel workflow, all of which contribute to improved actual omni-channel continued usage behaviour among consumers. Furthermore, the findings offered useful theoretical and practical contributions. In terms of theoretical contributions, the study offers new knowledge on the factors that contribute to actual omni-channel continued usage. From a practical standpoint, the study proposed two parsimonious frameworks that can guide retail banks to develop strategies and policies for addressing the influential factors that drive the actual continued usage of omni-channel. Therefore, retail banks are provided with insights and strategies to cultivate channel convenience, channel credibility, channel competence, channel customisation, channel accessibility, channel experience, channel engagement, positive anticipatory channel emotions, negative anticipatory channel emotions, perceived channel value, channel satisfaction, overall channel satisfaction, channel delight, overall channel delight and channel integration in an effort to stimulate actual omni-channel continued usage.