Int. j. econ. manag. soc. sci., Vol(3), No (9), September, 2014. pp.

530-532

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International Journal of Economy, Management and Social Sciences

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ISSN:
2306-7276

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A Study on the Correlation between Customers Attitude toward New

Services by the Banking System and Customers loyalty: a Case of
Private Banks in Iran
Ali Asghar Eyvazi Heshmat *
Faculty Member, Department of Management, Payame Noor University, Po Box 19395-3697 Tehran, I.R of IRAN.
*Corresponding author: eivazi_ali@yahoo.com

Keywords

Abstract

New services
online services
Customers attitude
Private Banks

Nowadays, success in market has been harder by increasing competition and customers information. In
nowadays competitive market one of the important and useful methods of economic institutions, in order to
attract customers and make them satisfied and loyal, is to provide new and qualified services. In service
institutions whose basic activity is doing services, this is too prominent and important. Private banks are an
example of these institutions. These banks try to do all their best to be ahead of the competition by the
means of innovation in doing services and to guarantee their superiority in market at least for a short period
of time. But one of the important points about doing new services is the customers view toward these
services and the relationship between this view and their loyalty. This research has been done in order to
consider this relationship and to shows that there is a strong, positive and meaningful correlation between
customers view toward banks new services and their loyalty to bank. It is necessary to mention that this
article, in the point of strategy is to study the correlation and in the point of goal, is practical - descriptive.

1.

Introduction

In the recent years, innovation is considered a lot as a method to have improvement in the competitions benefits [4]. The service centered
organizations and especially private banks have understood innovation in doing services as an effective competitive strategy [1]. The most
important goal of doing innovative services that organizations and economic institutions are keeping at is to make ever increasing satisfaction
and loyalty through their customers [8]. But, sometimes it is noticed that in spite of having innovation in services, organizations ideals from the
point of customers loyalty are not proved and welcomed gladly. Finding the reason of this problem makes us familiar with different dimensions
of innovations in doing services. One of the important points that affect the customers decision to do new services, is their attitude toward these
services [6]. So, service centered organizations for example private banks, should care about customers attitude toward these innovative
services and be aware of it. In spite of all these, is there a correlation between the customers attitude toward bank innovative services and their
loyalty to organizations? This is a question that this research wants to consider about private banks in Iran and find the acceptable answer.
Answering this question can eliminate ambiguities in this field and make clear politicians attitude toward doing better services.
The customers of Parsian, EghtesadeNovin and Pasargad banks of Shiraz are considered as a basis to do research. Also, it is important to
mention that in this research online services are noticed as indicator for the innovative services.
1.2 Literature Review
This research is trying to find the correlation between customers attitude toward innovative services and its role to make loyal customer. In this
section at first we define the concepts and then go thorough its record.
G Waldport defines attitude: attitude is a mental mood of inclination that is organized by experience and effects actively on persons reactions to
each subject and situations [9]. In other words each attitude is a previous background to act positively or negatively toward people, things and
happenings and has an oriented role in turning a mental mood to an active one. Psychologically, the concept attitude, thought and desire
are some social mental concepts that suggest an organized scheme of stimulus. Psychologists have divided the concept attitude into three
elements:
1-Cognitive element: is related to different and conscious ideas about a subject.
2-Sentimental (emotional) element: indicates feelings that are stimulated in a person because of a subject and make his assessment of that subject
clear.
3-Ready to act element: about the mentioned subject, the person acts in a certain way [9].
Also, there are different definitions of innovation. To define this word we should consider the meaning of the concept creativity. Creativity has
a direct relationship with imagination or the mental pictorial ability. This ability is a process of taking pictures of comprehended phenomenon in
the mind and creativity is a process of finding ways to do work better. Creativity is the ability to find a new way to solve the problem. It means
to present innovative thoughts for production and new services and its continuation after their absence. In the organizations; creativity means to
present thoughts and innovative designs for quality or qualifications improvement of organization activities. According to this, innovation is the
transfigured and practiced creativity. In other words, creation means a proved creative thought. Innovation is to present and process the product
and to give new services to market. It means to make use of your mind abilities and to create a new thought or concept [5].
Now, it is necessary to define loyalty, too. Basically, customers loyalty means to keep his deep commitment for buying or choosing the product
again and again in the future and in spite of that the situational effects and business man efforts can really change his behavior [13].
By the means of these definitions, we consider the results of some related researches. In a research which was done by Lee (2012), it shows that
customers attitude toward innovation in services (new services) can effect on their future buying decisions. Also, it becomes clear that these
elements effects the customer attitude :easiness in the use of services, fairness in service prices, satisfaction of service existence, up to date style
of services and risk avoided services. Lymperopoulos and his colleague (2006) in a research came to this result that the most important factor for
customers in choosing a bank for their loans is its service quality. In another research Shang and Liu (2010) show that the quality of online

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A Study on the Correlation between Customers Attitude toward New Services by the Banking System and Customers loyalty: A Case of Private Banks i...
International Journal of Economy, Management and Social Sciences Vol(3), No (9), September, 2014.

services especially in the banks can have a strong effect on customers loyalty and satisfaction. Wang and Wu (2012) came to this conclusion
that the customers imagination and attitude toward the institution can be effective on the customers loyalty and having a long period
relationship between them and institution.
1.3 Research Model and Hypotheses
According to literature and the considered record in the relation with the research question element, this model is noticed as the conceptual
research model:

Risk

avoided

innovative
Up

to

date

innovative

Customers loyalty

H1

Satisfaction

Customers attitude
toward innovative
services

of

innovative

Easiness

in

using
Fairness in using
innovative

Figure 1.Conceptual research model

In the above model, the relation between customers attitudes with the effective elements is taken from Lees research (2012) and the correlation
between customers attitude and his loyalty is its assumption. Of course, after considering related studies, this assumption was in accord with
researchers supposition [11]. As a result, the hypothesis of the research was formulated as:
Hypothesis 1: There is a positive meaningful correlation between customers attitudes toward new services (Online services) and their loyalty to
the banking system.

2.

Research Methodology

As it was mentioned the introduction, Pasargad, EghtesadeNovin and Parsian banks in Shiraz were selected as the study setting. One of the
important reasons of choosing these banks are their being pioneer in the use of online services. By coordinating with these three banks
managements, they were asked to deliver questionnaire through electronic post to online customers accidentally and demand them to answer the
questions correctly and frankly. The questionnaire which was the basis of this research information was a standard one containing 19 closed
questions (Appendix A) and the answers were arranged according to Likerts five point scale (This questionnaire was given through electronic
post to the managements).After taking and first checking the questionnaires it became clear that 128 of 150 questionnaires were answered
correctly by the customers and this amount was our analysis basis. It is necessary to say that the test which was applied for the data analysis and
checking the truth or falsehood of the hypothesis was Pearsons correlation test that was done by SPSS software.

3.

Data analysis Results

After entering the data in SPSS and doing Pearsons correlation test, this table was the result (the confidence level was set at 0.5).
Table 1. The result of data analysis software
customers attitude toward
innovative services
Customers loyalty

Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N

customers attitude toward innovative services

1
128
0.73
0.21
128

Customers loyalty
0.73
0.21
128
1
128

According to this Table 1, it is clear that there is a strong and positive correlation between customers attitude and his loyalty toward the
innovative services (.73) and this correlation is too meaningful because sig is 0.21 and less than 0.5. So the hypothesis is accepted.

Ali Asghar Eyvazi Heshmat *

532

International Journal of Economy, Management and Social Sciences Vol(3), No (9), September, 2014.

4.

Conclusion and discussion

As you see, data analysis shows that there is a positive correlation (.73) between customers attitude toward innovative services and their loyalty.
This conclusion is in harmony with other researchs results.
In other researches [8], the conclusion was that the best qualified services can affect customers approach and loyalty positively. Now if we
interpret innovative services, including online services, as a special level of qualifications, this researchs result is the continuation of the
previous studies.
The important points in this research are the data and indicators affecting customers attitude toward innovative services. These five elements
that together shape the customers attitude should be noticed carefully by the service centered organizations, specially the banks. It means that
these organizations should analyze their new services by the means of these elements when they want to have a new service for their customers
and try in the way of improvement. Little by little the customers positive attitude is shaped, and according to studies this results in loyalty.
4.1 Suggestions for managers and researchers
According to the research results, these suggestions are presented for the three private banks managers in the study and other similar banks and
organizations.
1- To pay more attention to creativity and innovation in giving services to customers.
2- To try to analyze and improve their services according to the mentioned norms in the study.
3- To try to plan and present services with low risks for the customers.
4- To try to provide services those are easy to use and accessible.
5- To try to provide services those are available.
6- To try to plan services those are economically beneficial.
7- To try to plan prestigious services.
4.2 Suggestions for future research
1- Studying other dimensions of the present research to enrich the present researchs conceptual model.
2- Using other data analysis methods such as cause and effect relationship.

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