Affective and instrumental commitment: a special reference to self service technologies in domestic and foreign banks

Abstract

The current research investigates the effects of consumers’ perception (i.e. perceived usefulness, perceived convenience, and perceived security and privacy) of self-service banking technologies (SSBTs) on customer satisfaction, which in turn affects their affective and instrumental commitment toward banks. Based on the data collected from 176 domestic bank customers and 130 foreign bank customers in Vietnam, the current research examines and compares the proposed relationships across domestic and foreign banks. Its results indicate that, for the overall sample, perceived usefulness, perceived convenience, and perceived security and privacy of SSBTs positively affect customer satisfaction, which incidentally significantly increases customers’ affective and instrumental commitment. However, perceived usefulness of SSBTs is not an important driver of customer satisfaction with domestic banks. Also, in the case of foreign banks, perceived convenience of SSBTs does not influence customers’ satisfaction, and customers’ instrumental commitment toward foreign banks is not affected by customers’ satisfaction. Based on the research findings, this study provides some suggestions and recommendation for both domestic and foreign banking practitioners and policy makers in Vietnam.