EBSCO FullText 2024 06 04

Journal of Global Marketing
2023, VOL. 36, NO. 2, 141–164

https://doi.org/10.1080/08911762.2023.2188508
Examining the Relationship Among Customer Experience, Bank Image,

and Trust: A Multichannel Banking Perspective
Nidhi Verma and Mandeep Kaur
University School of Financial Studies, Guru Nanak Dev University, Amritsar, India
ABSTRACT KEYWORDS
This article aims to validate Schmitt’s dimensions of customer experience in multichannel Customer experience;
banking (both traditional and electronic banking) contexts. Additionally, the article investigated Schmitt’s dimensions; bank
the relationship of customer experience dimensions with image and trust in a multichannel image; trust; multichannel
banking context, and also analyzed if image mediates the relationship between customer banking; branch banking;
electronic banking; PLS-SEM
experience dimensions and trust. Moreover, the article examined whether these relations
differ with the banking channel in use. Thus overall, the study explored a four-dimensional
relationship, i.e., customer experience with bank image/branch context, customer experience
with trust/branch context, customer experience with bank image/electronic context, and
customer experience with trust/electronic context. 834 multichannel banking customers’ data
was used to validate the scale by using the double approach of EFA and CFA, as well as
tested the model by using PLS-SEM. Several complimentary metrics, such as PLS-Predict and
Blindfolding (Q2) were applied to check the results’ robustness. The findings revealed that
customer experience scale is context specific. Additionally, the impact of CE dimensions on
image and trust is found to vary with the channel in use. The study also revealed that bank
image has the effect of complementary mediation between most of customer experience
dimensions and trust in both branch and electronic banking, as per the decision tree of
Zhao et al. except for the relation between cognitive dimension and trust, where image has
the effect of indirect only mediation in traditional context.
1. Introduction (Brakus et al., 2009). Marketers have realized that

Intense competition all around the market along customers in today’s time are the emotional
with an abundance of IT development, has led equity of the company and thus an optimal blend
to drastic changes in the techniques and funda- of emotional and functional elements is required
mentals of Marketing. Today’s marketing does to retain the customers for a more extended
not depend solely on the physical and traditional period (Bhattacharya et al., 2019; Mascarenhas
aspects, which concern only the quality, quantity, et al., 2006). Moreover, through this realization,
and functions of the offerings. But it is much the marketers have eventually understood the
more concerned about the emotions, feelings, and significance of providing customer experience.
other customer-engaging elements. As also Because it is the experience that considers cus-
claimed in the study by (Shaw and Ivens, 2002), tomers to be emotional along with rational con-
85% of the market leaders agree on the fact that sumers and provides them the balance of same
the differentiator of today’s market is customer (Pine II & Gilmore, 1998; Tsaur et al., 2007).
experience and not merely the physical attributes To define customer experience (CE henceforth)
(Mascarenhas et al., 2006). In the article by in simple words, it can be said as the long lasting
Schmitt (1999) also, it has been contemplated impression customers have of the events they
that there is a shift from selling economy to an encountered at the time of buying any product
experience economy, where customers are con- or service, etc. (Gronholdt et al., 2015). Following
sidered emotional as well as rational beings it, the Companies in today’s phenomenon are
CONTACT Nidhi Verma nidhiusfs.rsh@gndu.ac.in University School of Financial Studies, Guru Nanak Dev University, Amritsar143005, India.
© 2023 Taylor & Francis Group, LLC
142 N. VERMA AND M. KAUR
turning around their strategies from an inside-out 2025. Thus, marking the digital payments rise to
to an outside-in approach. Wherein the custom- Rs. 7092 lakh crores in FY 2025 from Rs 2153
ers’ needs, emotions, or benefits are the basis for lakh crores transactions in FY 2020 (Ishwar S,
deciding their organizational policies, procedures, 2020). Moreover, as per the report of Blue Weave
and marketing activities, rather than the earlier Consulting, the Indian digital banking market is
approach where the structures, decisions or plans ready to witness projected growth of 9.8% by
were based on organizational preferences only. 2022–2028. With this digital drive around, branch
On the other hand, India is going through the banking is spreading its wings to all digital chan-
digital revolution, wherein the whole Digital DNA nels, such as ATMs, Cheque deposit machines,
is undergoing significant changes, be it the demo- POS, Website Banking, Mobile Banking, etc. This
graphical shift of the internet users, or the shift type of banking, wherein the banks along with
to matured online activities. As per the report the traditional channels, are adopting digital
“Encashing on Digital: Financial Services in channels is known as Multichannel Banking
2020”, there is an estimated increase in online (Hernando & Nieto, 2007). With the growth and
shopping and banking to 37% and 32% in 2020 movement of the Indian banking system toward
from 23% to 10%, respectively, in 2016, which a digital payment system, branch banking is not
shows a significant increase in online banking as left at bay but it still works complementary to
compared to the online shopping (Tripathi et al., it. The report of McKinsey and Company sup-
2020). India’s development toward e-banking can ports this fact by revealing that 71% of consum-
be understood by the latest report of the Indian ers prefer multichannel perspective because, along
Monetary Fund, which shows India is leapfrog- with the electronic banking channels for almost
ging in embracing the digital payment system, all services, they still prefer branch banking for
with an average annual growth rate of 50%. This sensitive or complex services (Khons et al., 2022).
growth is complemented by the Unified Payment Further, it asks bankers to understand the inter-
Interfaces (UPIs) transactions growth rate of dependence of these banking channels. This tran-
160% and the number of participating banks ris- sition of the Indian economy toward digital
ing by 44%–330% (Kearns and Mathew, 2022). economy, especially concerning banking sector
Further, the percentage of individual users is also calls for the in-depth study of understanding the
set to reach triple the growth of 750 million in customer experience with regard to the new sys-
the coming three years. No doubt that where on tem of banking, i.e., multichannel banking.
one side instant and electronic payments are Additionally, the significance of customer expe-
expected to grow by 37% and 34%, the traditional rience in multichannel banking could be esti-
payment system on other hand is expected to mated from the report of Finacle Connect which
decline to 28.3% in 2025 from 61.4% in 2020. states that it is the experience that shall be
Moreover, as per (Botta et al. 2021), India has focused on, instead of focusing only on the num-
surpassed China and the U.S. to top the globe ber of channels, to attain the competitive advan-
with 25.5 billion real-time online transactions in tage. Also, the IT executives have rated the CE
2020, thus pandemic worked as a catalyst in improvement to be the second most crucial factor
pushing the country toward a digital economy. in retaining customers and achieving competitive
Also complimented by Pankaj Chaudhary, the advantage (Chhahira et al., 2014). Customer
Union Minister of State for Finance, India, the Experience’s significance has come to light owing
pandemic has proved as a blessing in disguise to the multichannel trend of banking. As with
for digital banking, as it has complemented the the customers’ urbanization, the banks need to
upsurge of e-banking adoption to Rs. 4371.18 reach a wider number of customers, and that
crores in FY 2020–2021. Another report by Ernst also at the least cost. Thus, the banks started
and Young and the Indian Private Equity and adopting new mobile and internet channel, which
Venture Capital Association (IVCA) states that is 43 and 13 times less expensive than branch
India is set to mark a growth rate of 27 percent banking and ATM, respectively (www.gadgetsnow.
CAGR of digital payments by the Financial Year com). As per the study by an IT consulting firm,
Journal of Global Marketing 143
on an average three channels are used by banking (which the management intentionally does), plus
customers to transact. With the addition of new their experience of the store being a significant
channels and adoption of a multichannel banking part of forming an image (Andreassen &
system, delivering experience has become much Lindestad, 1998; Kandampully & Suhartanto,
more intricate. Because with every channel there 2000; K. Srivastava & Sharma, 2013).
is the need to provide a unique and customized Brunner et al. (2008) in the article have found
experience. All the more when one talks about that with the increase in experience, the signif-
the experience in multi-channel context, the cus- icance of image increases (Faullant et al., 2008),
tomers will consider the experience in totality while that of satisfaction decreases concerning
and not independent of each other (Chen et al., the choice of brand or an organization. The rea-
2004; Chhahira et al., 2014; Pine II & Gilmore, son being image creates a halo effect in the cus-
1998; Tate et al., 2005). Thus, the banks need to tomers’ minds. The positive or favorable image
provide a seamless cross-channel experience, that works as a filter in the selection of companies
will help them create an inimitable and differen- (Andreassen & Lindestad, 1998). Rightly con-
tiated image in the minds of customers. templated by Chinomona (2016), that brand
Customer experience and Bank Image are the image is key to the customers’ confidence, which
two primary basis for selecting a brand or an creates an inclination toward a particular brand/
institution (Alwi et al., 2019). It is this experience product/company or service provider. As once
that makes the black and white image come into the brand image is set highly favorable, it mir-
color (Martín-Santana et al., 2017). Image as rors the product functionalities. This higher con-
defined by Dowling (1986) modified in the confidence and favorable image lead to higher trust
text of Banking is “A set of interactions of cus- in the brand. The significance of trust cannot
tomers’ beliefs, ideas, feelings and impressions by be undermined. While some authors (Spekman,
which the bank is known and through which the 1988) considered Trust as the cornerstone of
customers describe, remember and relate to it”. strategic partnership, others considered it as the
To say image in layman’s language, it is the total center point of relationship (Abosag et al., 2006;
accumulation of experiences, advertisements or Morgan & Hunt, 1994). Further, Gundlach and
communications done by the organization in the Murphy (1993) rightly contemplated that “the
mind of people. It is the outcome of the variable which is universally accepted for any
well-composed symphony of communications social interaction is trust.” In layman language,
designed by the service provider. Image is a cru- Trust is a belief that the other person/company
cial element in the consumer research field (Jin will Behave/conduct the activities in the best
et al., 2012; Verhoef et al., 2009), as it represents interest of the “Trustor.” Rajaobelina et al. (2018)
the overall glimpse/experience one takes from in his article has propounded that the experience
the services provided by the company (Nguyen dimensions, such as Cognitive, Affective, and
& Leblanc, 1998). Eventually, it is the experience Behavioral helps in enhancing the level of trust,
that reduces misconceptions about the organiza- thus considering CE as the catalytical agent in
tion, and gives a real view of services and forms the formation of trust. The quality information
an image in the minds of customers (Jones et al., provided by the firm on their communication
2009; Smith et al., 2015). The experience of a channels helps customers in finding and com-
customer can lead to three conclusions about paring the firm’s product online as well as offline.
Image, either the image would become strong, Thus, customers engage themselves with the
or complex or would remain unaltered (Fakeye organization and the staff, creating an environ-
& Crompton, 1991). It is the experience that ment to build trust (Chan, 2018). Even, Zehir
alters the image during and post-receipt of the et al. (2011) have considered and found the
services, which is dependent on the kind of inter- experience as the exclusive domain for the for-
actions one has there (Martín-Santana et al., mation of trust, for it is the creator of the trust
2017). Thus, the image is formed from what they based on the relationship between customer and
get through various sources of communication service providers.
In line with the above statements, one can relational dimension, Nysveen et al. (2013) challenge
understand the role of experience in image for- the global validation of the Customer Experience
mation and the creation of trust, as also sup- scale and ask for its empirical testing and validation.
ported by the various authors (Ladhari et al., Though the dimension proposed by Schmitt
2011; Lin & Kuo, 2016; Liu et al., 2020; has been widely accepted and applied by authors
Martín-Santana et al., 2017; Rajaobelina et al., in various countries and contexts as it covers the
2018; Samuel et al., 2015; Zehir et al., 2011). But holistic view of experience (Gentile et al., 2007)
still, the literature asks for an in-depth study on But the in-depth review made us conclude that,
how the CE dimensions influence image over time when it is about multichannel banking in India
(Smith et al., 2015). The relation and significance specifically, the dimensions as proposed by
of trust are checked in numbers in the context Schmitt (1999) have yet to be validated. The
of mono-channel services, but Toufaily and Pons dimension, as proposed by Schmitt, has been
(2017) rightly proposed that trust is equally applied by numerous authors in various kinds of
important in all the service channels, be it pure services and in a number of countries, such as
mono-channel or the multichannel retailers. The Norway, South Korea, Taiwan, India, Malaysia,
importance of trust in a multichannel context is Canada, and Florida (Brun et al., 2020; Bujisic,
well supported by authors, such as 2014; Liu et al., 2020; Manthiou et al., 2016;
Fernández-Sabiote and Román (2012) and Toufaily Nysveen et al., 2013; M. Srivastava & Kaul, 2016;
and Pons (2017). But, studies of trust in relation Yoon & Lee, 2017). But in the context of the
to multichannel is a rare case (Chen et al., 2004; banking industry specifically, these dimensions
Fernández-Sabiote & Román, 2016). Because with have been evaluated in Canada and North
the in-depth literature, it has been revealed that America by validating Schmitt’s dimensions either
there is a dearth of studies considering and ana- in a Branch or in an Electronic channel context
lyzing customer experience dimensions as an (Brun et al., 2017; Rajaobelina et al., 2018). Even
antecedent of these two essential constructs, espe- one of the researchers from Jammu, India, has
cially in the multi-channel banking context (Brun conducted a study using only three of Schmitt’s
et al., 2017). dimensions, but that also in the context of branch
Validating the Customer Experience Dimensions: banking (Chahal & Dutta, 2015). Thus, none of
Dimensions, as defined and proposed by Schmitt, them have validated the scale that is applicable
are the compilation of the thoughts/concepts of for multichannel (i.e., Branch, ATM, Mobile, and
(Hirschman and Holbrook, 1982). Various research- Web Banking) as done by the author.
ers have supported these dimensions, such as Gentile Thus, by validating the scale that can work in
et al. (2007), Mascarenhas et al. (2006), Pine II and all kinds of bank channels simultaneously (mul-
Gilmore (1998), and Verhoef et al. (2009). Where tichannel perspective) or work well in both
Pine and Gilmore talked about experience as being branch and electronic contexts, the author will
personal, existing in their minds. Mascarenhas et al. help outdoing the gap from the studies, where
(2006) on the other side, spoke about experience as the same scale cannot be used for multi-channel
subjective and objective, including the dimensions banking in the Indian context. Moreover, it is
parallel to that proposed by Schmitt. Gentile’s contemplated by many of the novel authors
Sensorial, Emotional, and Cognitive dimensions; and (Petrides & Furnham, 2000; Schutte et al., 1998),
Verhoef ’s holistic experience comprising Affective, to validate a scale before its applicability in the
Emotional, Cognitive, Social, and Physical response research as the failure to validate a scale might
mirrors Schmitt’s dimensions of Sense, Feel, Think, lead to some irrelevant indicators being measured
Act, And Relate (Nysveen et al., 2013). Though there in the construct, which might reduce its effect
are some arguable findings about the fifth dimension size (Asiamah et al., 2018). Thus, there is a need
of experience, i.e., relational/social experience, stud- to validate these dimensions concerning multi-
ies like that of Nysveen et al. (2013), have empiri- channel banking, as it is said to be context-specific
cally proved the significance of the same. By (Nysveen et al., 2013). The dimensions in detail
providing the dissimilar result concerning the are discussed in the hypothesis section.
Thus, this study will contribute in filling up that customers nowadays are not bounded only
the gap by achieving the following objectives: by the quality of products, but it is the experi-
ence along with the product/service quality that
they think of after the purchase. The customers
1. To validate the Customer Experience scale evaluate the services by asking themselves how
in a multichannel banking context. well the service provider understands them. Thus,
the experience has become the USP (unique sell-
i. To examine the impact of Customer
ing proposition) for the customers in today’s era,
Experience Dimensions on Image and
which is inimitable by the competitors (Berry
Trust with respect to both Branch and
et al., 2002; Trivedi, 2019).
Electronic Banking.
ii. To analyze the direct effect of Bank
Image on Trust in the context of 2.2. Bank image
Multichannel Banking, and
Image is formed in the subtle mind of the cus-
iii. To check the mediating effect of Bank
tomers based on a few selected attributes that
Image on the relation between Customer
are considered significant by them (Bloemer &
Experience Dimensions and Trust in
Ruyter, 1998; Fakeye & Crompton, 1991; Soliha
the context of both Branch and
et al., 2019). Lindquist, in his article, pointed out
Electronic Banking.
that humans cannot perceive or calculate all the
2. To compare the relational effects of various
moments together, but they simplify them all and
constructs between Branch and Electronic
filter out the essential elements to form an atti-
banking models.
tude about the brand/organization, services, etc.
Bank Image defined in the words of Howcroft
(1991) is “the total impressions and expectations
2. Literature review acquired by customers and non-customers over
2.1. Customer experience
a period of time.” Business Dictionary (2013)
defined it as “the impression in the mind of cus-
Schmitt defined experience as the “Sensory, tomers of a bank’s total personality, which may
Emotional, Cognitive, Behavioural and Relational be imaginary or real, shortcomings and qualities.”
values that replace Functional ones.” On the other From the definitions, one can say that an Image
side, Carbone and Haeckel defined it as a “lifelong is formed based on customers’ own values, feel-
impression of the events that people encounter at ings, ideas, perceptions (Dowling, 1986; Jin et al.,
the time of buying products, services and busi- 2012; Nguyen & Leblanc, 1998) and expectations
ness—a perception produced when humans con- based on advertisements, word of mouth, etc.
solidate sensory information” (Kyguoliene & Lahap et al. (2016) and Spector (1961) in his
Makutenas, 2017). Whereas Pine II and Gilmore article said that there could be similar experi-
(1998) defined it as an experience that “a customer ences leading to divergent image creation, and
finds unique, memorable and sustainable over in contrast, there can be divergent experiences
time” (Gronholdt et al., 2015). Thus, in simple leading to similar image formation.
words, when a company uses service as a profound As per the literature, the authors have defined
element of their marketing to engage in sensorial, image in two ways, psychological and functional
relational, cognitive, behavioral, and affective (Heijden & Verhagen, 2004; Kennedy, 1977; Kuo
aspects of customers to create long-term impres- & Ye, 2009; Prendergast & Man, 2002; Verhagen
sions, is known as Customer Experience (Pine II & Dolen, 2009). The functional one whereby talks
& Gilmore, 1998). about the tangible aspects, such as Merchandise
Overall, experience is not about following price, quality, location, convenience, advertising,
every customer’s demand; rather, it is about and clean environment, etc.; the psychological
knowing the customer and customizing its dimen- perspective, on the other hand, talks about the
sions to suit their preference. Research has shown emotional or affective part of the image, such as
warmth, friendliness, courteousness, welcoming i.e., withdrawn, scores to be the weakest dimen-
nature of the store, or the appearance of person- sion, thus, not considered for study purpose
nel working there (Narteh, 2017). At the same (Souiden et al., 2006).
time, the image can also be formed organically
in the minds of customers who have never visited
2.3. Trust
the place/organization through various word of
mouth and media information flooding in the Trust is demonstrated by numerous words by
market (Gunn, 1972). Image, in this way takes authors in the literature. Some call it confidence,
the uncertainty out of (potential) customers by and other call it a feeling of security, reliability,
giving them an idea about the kind of goods and faith, dependability and so on (Chan, 2018). But
services provided by the firm (Jin et al., 2012; altogether, it is said to be a feeling between two
Kuo & Ye, 2009). persons/parties in a formal or an informal setting
Image has been measured in various ways; to rely on each other. In other words, one party
some grasped the Likert scale items on a unidi- (Trustor) relying on another party (Trustee) for
mensional basis (Andreassen & Lindestad, 1998; not taking any undue benefit out of the transac-
Bloemer & Ruyter, 1998; Brunner et al., 2008; tion and doing what is said to be the most favor-
Chih-Chung et al., 2012; Chinomona, 2016; Han able and positive Behavior toward the trustor,
& Hyun, 2017; Hu et al., 2009; Jin et al., 2012; despite the unknown conditions of the future
Kaur & Soch, 2013; Ladhari et al., 2011; Lahap (Brun et al., 2020; Floh & Treiblmaier, 2006;
et al., 2016; Nguyen & Leblanc, 1998; Ryu et al., Samuel et al., 2015; Yoo & Bai, 2013; Zaltman &
2008; Soliha et al., 2019; Souiden et al., 2006; Moorman, 1988). It is the confidence one party
Wang, 2010), whereas some measured it on shows to another based on the services provided.
multi-dimension base (Bloemer et al., 1998; Bravo Competency, Benevolence and Integrity are said
et al., 2010; Fakeye & Crompton, 1991; Heijden to be the three essential components of trust, as
& Verhagen, 2004; S. K. Kim et al., 2015; Kuo supported by Ling-Yee Li et al. (2017),
& Ye, 2009; Verhagen & Dolen, 2009). Even some Bhattacherjee (2002), Brun et al. (2020), Chu
authors do not feel it appropriate to measure it et al. (2012), Ghane et al. (2011), Haghkhah and
through semantic differential (Kunkel et al., Asgari 2020, Rajaobelina et al. (2018), and
1968), instead consider taking it attribute-wise. Mcknight and Chervany (2001). Competence here
To which Lindquist figured out that 25% of refers to skills, abilities, and expected perfor-
researchers talk on average about attributes, such mance of the firm. In contrast, benevolence refers
as price, merchandise, service, clientele, location, to the desire to do acts with good intentions or
parking facilities, courteous personnel, store to do good for the trustor. Last, integrity refers
atmosphere, sales incentive programs, sales pro- to the honesty and belief that the promises will
motion, advertising, etc., to name a few (Kunkel be met and the well-being of another party will
et al., 1968; Lindquist, 1974; Bearden, 1977). be valued.
This study has adopted six dimensions of Bank In an online context, trust becomes vital as
Image proposed by Spector (1961). These six e-channel entails numerous risk elements, such
dimensions consider the traits, such as dynamic: as the absence of human touch, the spatial dis-
showing the company being pioneering and adap- tance between the customer and service provider,
tive to changes or innovation; cooperative: showing the time difference between the actual transaction
the company’s ability to be friendly, self-responsive, and delivery of service, invasion of hackers, and
and being conducive to customers’ needs and privacy of the information, etc. (Harris & Goode,
demands; business like: being shrewd, intelligent 2004; Samuel et al., 2015; Yap et al., 2010). But
and reputable; character: having good character, at the same time, developing trust in online
ethical and respectful; successful: having success establishments is much more complex and chal-
in all manners, mainly in financial terms; and last lenging as compared to its offline counterparts.
but not the least is withdrawn: the perspective of Thus the e-channels provide customers with
being hidden, all of secretive. The final dimension, lesser cues to know or judge the service provider
(Urban et al. cited in Chu et al. (2012)) and interaction and online chat support influence how
makes trust a vital component, to believe that they see an organization. Moreover, by giving due
the e-service provider will not misuse the infor- care to the customer’s complaint, having proper
mation provided to them (Bhattacherjee, 2002). and courteous interaction and a sense of belong-
With the increase in number of transactions and ingness induces a feeling of security and confi-
gathering more and more of experience clues, dence toward the organization, thus, in turn
the customer starts relying on the information influencing customers’ trust toward the bank
provided and understands the credibility of what (Brun et al., 2017; Rasool et al., 2021; Verma &
is promised, as well as the accuracy of the trans- Kaur, 2022). Consequently:
action (Chu et al., 2012). The trust in e-services,
especially in the context of e-banking, is devel- H1: Social dimension positively impacts (a) Image and
oped based on the trust in the traditional channel (b) Trust in both branch and electronic banking.
(Janda & Ybarra, 2005). Yap et al. (2010) rightly
pointed out in his article that the scale of bank 3.2. Cognitive dimension
operation, reputation and goodwill built by the
traditional channel is the building block of trust This dimension caters to the intellectual experi-
in the electronic mode. ence and mental processes going on in customers’
Authors have measured trust in varied ways; minds (Brun et al., 2017; Pine II & Gilmore,
some considered it as unidimensional (Chu et al., 1998). It is a part of experience that talks about
2012; Fernández-Sabiote & Román, 2016; Ghane provoking customers to think and providing them
et al., 2011; Haghkhah & Asgari, 2020; Harris & with enhanced knowledge and enriched relation-
Goode, 2004; Ling-Yee Li et al., 2017; Morgan & ship quality (Verma & Kaur, 2022). The knowl-
Hunt, 1994; Rajaobelina et al., 2018; Yap et al., edge or abundance of useful or meaningful
2010; Zehir et al., 2011), whereas other consid- information provided to the customers can
ered it as multi-dimensional (Abosag et al., 2006; enhance their level of trust (Chan, 2018), thus
Toufaily & Pons, 2017). But, measuring it helping them make well-planned purchase deci-
uni-dimensionally is regarded as the most suitable sions. Also, the knowledge gained by the cus-
(Abosag et al., 2006; Chu et al., 2012). tomer allows them to resolve issues on their own
in the future. To enhance CE, the bank managers
need to provide substantial knowledge to the
3. Hypothesis development customers that can be disseminated through web-
sites, mobile applications, or through the employ-
3.1. Social dimension ees themselves. This will promote a good image
In today’s time, along with branch banking, cus- in the customers’ minds, thus creating a sustain-
tomers’ have various opportunities to communi- able competitive advantage (Chahal & Dutta,
cate with the staff directly. For instance, in the 2015; Tsaur et al., 2007). Thus, hypothesizing:
online setting, the customers possess numerous
ways to interact with the personnel, in the form H2: Cognitive dimension positively impacts (a) Image
of feedback forums, chat supports, media, and and (b) Trust in both branch and electronic banking.
touch points (Rasool et al., 2021; Trivedi, 2019;
Verma & Kaur, 2022). Thus, making the customer
3.3. Behavioral dimension
experience more social than in earlier times.
Nysveen et al. (2013) in his article has concluded This dimension supposes that it is caring behavior,
that the interaction between “customer and timely resolving of the customers’ complaints, and
employees” and “customers and customers” have proper services, which is the basis for choosing a
a significant role in creating customer experience. banking organization and leaving others at bay
Additionally, various authors have also supported (Chahal & Dutta, 2015; Verma & Kaur, 2022).
that the social dimension significantly influences Nowadays, organizations induce customers to give
consumers’ purchase behavior. Because this their ideas, feedback, and even co-participate in the
designing and production of goods and services. 3.5. Affective dimension

This co-participation highly influences customers’
The dimension that caters to the feelings and
belief in the organization (Verma & Kaur, 2022).
emotions of customers they encounter at the time
Though the dimension fails in its consensus by the
of receiving service/es. The feelings like joy, hap-
authors with respect to defining and considering
piness, surprise, serenity, sadness, anger, fear,
the inclusions and exclusions of various aspects, but
disgust, and so on are all part of the affective
it still is said to have a substantial impact on the
dimension. Though it constitutes both negative
customers. Additionally, the providence of compar-
and positive feelings, many researchers have only
ison and evaluation of multiple products and ser-
concentrated on the positive affective dimension
vices through physical settings or online mode helps
(Chahal & Dutta, 2015; Rajaobelina et al., 2018).
in having in-depth knowledge about the organiza-
By managing these emotions and feelings, along
tion. This co-production, and in-depth comparison,
with the quality of goods and services, organi-
can reduce the perceived uncertainty of the custom-
zations can enhance their total customer experi-
ers and thus build an incomparable image as well
ence. For instance, empathy by personnel,
as induce confidence and trust in the organization.
listening to queries or solving problems on time,
Hence, the underpinning hypothesis:
providing sensory mobile applications that are
H3: Behavioral dimension positively impacts (a) image appealing to the eyes and appealing to touch,
and (b) trust in both branch and electronic banking. providing the customer with a well-established
sequence and clear rules and regulations by the
banks or financial institutions. All these can help
3.4. Sensory dimension
enhance the affective experience of the customers
Experience is a consolidation of the sensory infor- and thus can take away favorable impressions
mation received by the customer in the course of along them, aiding in forming a good image and
encountering the product or service. The impression trust in the organization (Chahal & Dutta, 2015).
formed by the customers from all five senses is Therefore, the hypothesis is framed as follows:
basically what constitutes the sensory dimension.
H5: Affective (positive) dimension has a positive
Though this dimension possesses high significance, impact on (a) image and (b) trust in both branch
its relevance depends upon the kind of industry and electronic banking.
(Chahal & Dutta, 2015). One can have sensory
H6: Affective (negative) dimension negatively impacts
experience through various touchpoints, such as the
(a) image and (b) trust in both branch and electronic
web, advertisements, physical branches, personal banking.
contact, etc. The organizations can enhance the sen-
sory experience by adding one or other aspects,
such as better service-scape in the offline sector by 3.6. Image and trust
maintaining cleanliness or fragrant aura, or better
Rightly contemplated by Chinomona (2016),
touch and web design in the online setting, or sim-
brand image is the key to customers’ confidence,
ply by adding unique hedonic elements in the offline
making them assert their demand or inclination
as well as online settings. With the well-composed
toward a particular brand/product/company or
symphony of all the hedonic factors, for various
service provider. Once the brand image is set
senses, the industries can influence the image of
high/favorable, it becomes a mirror of the prod-
bank and motivate customers to have a sense of
uct functionalities. Moreover, when the custom-
trust in the bank by taking experience to all new
ers’ expectations or feeling about the brand meets
level (Verma & Kaur, 2022). Because it is the visual
the brand image, they are more confident, secure
senses of the customers that induce in them the
and dependable toward the brand, as it gives
feeling that the bank will work in their best interest.
them a sense of similarity (Chi & Qu, 2008;
Thus, hypothesizing:
Chih-Chung et al., 2012; Dick & Basu, 1994;
H4: Sensory dimension positively impacts (a) image and Kandampully & Suhartanto, 2000; Kunkel et al.,
(b) trust in both branch and electronic banking. 1968; Nguyen & Leblanc, 1998; Prendergast &
Man, 2002). Additionally, it is the positive expe- contexts. The effect of various experience dimen-
rience that inclines a customer highly toward the sions on behavioral outcomes varies with the
brand image. Further, this higher confidence and channel in use (Brun et al., 2017; Rajaobelina
favorable image leads to higher trust in the brand et al., 2018). For instance, the employee and cus-
as well (Chinomona, 2016), hence hypothesizing: tomers’ interaction is much more in branch set-
tings compared to the electronic mode, wherein
H7: Image positively impacts Trust in both branch
the customer is sitting alone in front of his com-
and electronic banking contexts.
puter/mobile/tablet screen (Brun et al., 2017).
Though, in the digital era, the social dimension
3.7. Customer experience, bank image, and trust comprises various chat forums and feedback
Image formulation and trust creation is the primary groups; where the customer interacts digitally.
outcome of the customer experience because experi- But, the role of social dimension is seen much
ence has the advantage of attaching customer to an in the case of traditional (branch banking) mode.
organization by providing connections that, in their Moreover, the sensory dimension is much more
way is multifaceted (R. B. Kim & Chao, 2019; Cleff effective in physical settings than online, as 3 out
et al., (Huang, 2017) (Ha and Perks, 2005)). As also of the 5 senses will not work in a virtual envi-
explained in the previous sections, sensory, affective, ronment (Brun et al., 2017; Fernández-Sabiote &
behavioral, social, and cognitive dimensions of cus- Román, 2012). Similarly, the influence of image
tomer experience create Bank Image and Trust in on trust can vary based on the channel in use.
the minds of customers. Furthermore, marketers Thus, the study uses an exploratory method to
nowadays have understood that it is the image as check how the relations between the constructs
perceived by customers that generate a perception of differ among the channels. Therefore, generalizing
safety and confidence in the organization, thus reduc- hypothesis as:
ing the level of risk and creating a higher level of
trust (Chinomona, 2016; Erkmen & Hancer, 2019). H9: The impact of customer experience dimensions
Flavián et al. (2005) on the other hand, has even on image and trust will differ based on the channel
named bank image as a “shield of trust.” Additionally, used.
various authors have proved the significance of cus-
tomer experience and image in creating trust in var-
ious sectors (Chinomona, 2016; Erkmen & Hancer, 4. Research methodology
2019; Flavián et al., 2005; R. B. Kim & Chao, 2019). 4.1. Measures
Thus, this signifies the role of Bank Image in medi-
ating the relationship between customer experience The self-administered questionnaire has been
dimensions and Trust, hence hypothesizing: used to collect survey data. The questionnaire
has been divided into four sections, Section A:
H8: Bank Image mediates the relation between (a) affec- General Information, Section B: Branch Banking,
tive positive dimension and trust; (b) affective negative Section C: E-Banking Channels, and Section D:
dimension and trust; (c) behavioural dimension and Demographic Profile. To measure customer expe-
trust; (d) sensory dimension and trust; (e) social dimen- rience, a multi-dimension scale developed by
sion and trust; (f) cognitive dimension and trust in Schmitt (1999), considering five dimensions has
both branch and electronic banking contexts.
been used, with the addition of an affective (neg-
ative) dimension, as recommended by Brun et al.
(2017) and Rajaobelina et al. (2018). The scale
3.8. Multichannel banking comparison
items used to measure dimensions of customer
(comparison of relations between branch and
experience have been adapted from various
electronic channels)
authors, as given in Table 1.
The study being based on multichannel banking; For measuring bank image, the scale has been
thus, it analyses the relation between the con- adapted from Souiden et al. (2006) and Wang
structs in both branch and electronic banking (2010). To measure trust, the items have been
Table 1. Items adapted from various authors. 50% of the branches in Punjab of the selected
Dimension Authors Items banks (as per RBI data). Second, these cities rep-
Social experience Brun et al. (2017) 5
Cognitive Experience Brakus et al. (2009), Brun 5
resent the three regions of Punjab, i.e., Majha,
et al. (2017) Malwa, and Doaba. Third, these five cities com-
Behavioral dimension Brun et al. (2017), 5
Rajaobelina et al. pose 67% of Punjab’s population (as per the List
(2018) of cities in Chandigarh and Punjab, India by
Sensory dimension Brakus et al. (2009), 4
Chang and Chieng, population).
(2006), Tsaur et al. For data collection, the questionnaires were
(2007)
Affective (negative) Brun et al. (2017) 4 distributed to 882 multi-channel banking respon-
dimension
Affective (positive) Brun et al. (2017) 3
dents fulfilling the following three criteria:
dimension
Total items: 26
1. The respondents must be of age equal to
Source: Literature Review.
18 years or more than that,
2. The respondents must be using two differ-
adapted from El-Manstrly et al. (2020). As the ent banking channels, that is traditional
study considers use of multichannel banking, thus (Branch Banking) and electronic channel
the items of customer experience, bank image, (any one e-channel, i.e., ATM, Electronic,
and trust were modified according to the banking Mobile Banking, etc.), and
channel in consideration. Thus, every survey 3. They must have transacted on the specified
respondent was required to give their response banking channels for the last one year.
or evaluate the statements regarding customer
experience, bank image, and trust toward branch The questionnaires were administered in
and electronic banking channels separately in person by visiting the populous branches of
Sections B and C, respectively. Further, items of the selected cities and the respondents were
all the constructs have been measured using a made clear about the items wherever required.
7-point Likert scale ranging from strongly dis- The respondents were required to select any
agree (1) to strongly agree (7). one of the electronic channels amongst the
available options (ATM, Electronic Banking,
and Mobile Banking) under Section C of
4.2. Data collection and processing
questionnaire.
The study followed a systematic process. At the Before putting the data for analysis, it was subject
first stage, the survey questionnaire was sent to to transformation and screening. As the question-
the field experts and refined accordingly to naire consists of certain negative statements, thus it
ensure its content validity. Further, to eliminate was first reverse coded into positive items. Moreover,
problematic items and improve the survey instru- certain questionnaires with minimal missing values
ment, pilot testing has been done by distributing were put to replacement using the expectation max-
the questionnaire to 133 multi-channel banking imization method in SPSS as recommended by
respondents of Amritsar and Mohali. Schafer and Olsen (1998). After proper screening
The final study adopted judgment-cum-conve- and deletion of missing or undesired questionnaires,
nience sample method to collect data from the the final data of 834 respondents were obtained. To
top 10 Public and Private banks. These banks assess the minimum sample size for data collection
have been selected based on transactions done as per the statistical power, the study employed G*
through various banking channels, reported by Power software with a 95% confidence level, rec-
RBI, pertaining to the accounting year April ommending a minimum sample size of 80. Thus,
2018–March 2019. The data collection has been the sample size of the study, i.e., 834, satisfies the
done from the top 5 cities of Punjab, i.e., minimum requirement. Table 2 shows that the sur-
Ludhiana, Amritsar, Jalandhar, Patiala, and vey sample covers wide range of respondents in
Mohali. The cities were selected based on three terms of age, gender, qualification, occupation, fre-
criteria. First, these five cities cover approximately quency of visit to their selected bank, and frequency
Table 2. Demographic profile of respondents.

Demographic variable Classification Frequency Percentage (%)
Age 18–25 214 25.7
26–35 432 51.8
36–50 164 19.7
50 & above 24 2.9
Total 834 100.0
Gender Male 421 50.5
Female 413 49.5
Total 834 100.0
Marital status Married 430 51.6
Unmarried 399 47.8
Others 5 .6
Total 834 100.0
Qualification Under graduate 77 9.2
Graduate 371 44.5
Post graduate 367 44.0
PhD 12 1.4
Any other 7 .8
Total 834 100.0
Occupation Service 632 75.8
Self employed 69 8.3
Business 48 5.8
Student 78 9.4
Retired 1 .1
Housemaker 1 .1
Farming 5 .6
Total 834 100.0
Income (personal, per month) Less than ₹ 25,000 304 36.5
₹ 25,001– ₹ 50,000 321 38.5
₹ 50,001– ₹ 75,000 100 12.0
₹ 75,001 & above 109 13.1
Total 834 100.0
City Amritsar 178 21.3
Mohali 164 19.7
Patiala 160 19.2
Jalandhar 161 19.3
Ludhiana 171 20.5
Total 834 100.0
Frequency of visiting the selected bank’s branch Every day 26 3.1
once in a week 77 9.2
Once in 2 weeks 49 5.9
Once in a month 207 24.8
Once in 2 months 116 13.9
Once in a year 161 19.3
Total 834 100.0
E-banking channel Net banking 189 22.7
ATM 186 22.3
Mobile Banking 459 55.0
Total 834 100.0
Frequency of using selected E-banking channel Every day 372 44.6
once in a week 285 34.2
Once in 2 weeks 72 8.6
Once in a month 58 7.0
Once in a year 12 1.4
Total 834 100.0
Source: Author’s calculation.
of using their selected e-banking channel. Whereby, 5. Results

the majority of respondents (51.8%) were found to
5.1. Common method biasness
be in the age bracket of 26–35 and about 44% of
respondents possesses Graduate and Post Graduate Before validating the scale and investigating the
degrees, whereas 9.2% and 1.4% were undergraduate proposed hypothesis, data have been analyzed to
and PhDs. Moreover, the data also revealed that check the problem of common method variance
majority of the respondents (75.8%) were deployed (Podsakoff & Organ, 1986). Two procedures were
in the service sector. adopted to check common method variance for
both branch and electronic models. First, through ensuring that the scale is prompt for the con-
EFA, the total variance explained (TVE) of the cerned study. Following are the results of EFA
first factor was checked, which yields 28.466% and CFA with regard to the CE scale.
and 28.705% of the variance for traditional and
electronic channels respectively, which is less than 5.2.1. EFA results
the recommended value of 50%. Second, Harmon’s Through the application of EFA, KMO values at
single-factor test was applied by fixing number the items level and the construct level as a whole,
of factors extracted to 1. The test result showed values of communalities, loadings, and TVE, and
that the majority of variance is not accounted on Bartlett’s test of Sphericity were checked to validate
one factor, as the TVE for branch and electronic the multichannel (branch and electronic) customer
banking comes out to be 31.278% and 32.056%, experience scale. Using this process, 1item each
respectively (less than 50%) (Podsakoff et al., from the social, behavioral, and cognitive dimen-
2003). Thus, the results suggest that constructs sions was eliminated. As their communalities value
do not account for common method biasness. or individual KMO was lesser than the prescribed
limits, based on the argument of Tipping and
Bishop (1999). Therefore, not taken further to the
5.2. Objective 1: validation of the scale
CFA stage (Asiamah et al., 2018). Thus, 23 out of
To achieve the study’s first objective, i.e., to val- 26 items (as can be seen from Tables 3 and 4)
idate the customer experience scale, both EFA were retained after 6 and 5 iterations, explaining
and CFA approaches were applied, using SPSS 68.247% and 67.164% of the total variance in
version 21 (SPSS Inc., Chicago, IL) and PLS-SEM branch and electronic contexts, respectively.
version 3.3.7 (Ringle, winde and Becker, 2015),
respectively. Though some authors supported the 5.2.2. CFA results
quick process of validating the scale by applying PLS-SEM version 3.3.7 (Ringle et al., 2015) was
only CFA. But the application of combined EFA applied to check both the measurement and
and CFA is well reinforced by novel articles structural model. As recommended by Anderson
(Petrides & Furnham, 2000; Schutte et al., 1998) & Gerbing (1988), the two-stage method was
who also validated the existing scale. The reason applied. In the first stage, the outer model of
for applying EFA along with CFA lies in the fol- Customer Experience is assessed for Indicator
lowing arguments by (Kelava, 2016). loading, internal consistency, and convergent and
The statistical baselines provided through EFA discriminant validity for both branch and elec-
are used well to find the irrelevant items and elim- tronic banking. First, Tables 3 and 4 show that
inate the same before the application of fit indices. the loadings of indicators were higher than the
Moreover, if some variables are left unchecked after threshold limit as per (Bagozzi and Yi, 1988).
the application of descriptive and EFA, they can Second, the internal consistency of the first-order
be spotted at the time of applying CFA. To validate constructs (CE dimensions) was checked (Table
the customer experience scale, all the dimensions 5) through the values of Cronbach Alpha,
of experience have to be significantly related to its Composite Reliability, and Rho A, which were
latent variable. The customer experience dimen- found to be more than the recommended value
sions, along with its latent variable, are tested sep- of 0.6 (Hair et al., 2022). Additionally, as the
arately for both branch and electronic models. AVE values of all the dimensions were more than
In order to check the convergent and discrim- the threshold limit, thus the lower values of load-
inant validity of the scale, the values of composite ings and alpha were also acceptable (Hair et al.,
reliability, AVE, and maximum shared squared 2018). Thus, the result confirms the convergent
variance have been analyzed. Provided the values validity of CFA results for both traditional and
are as per the recommended levels. This process electronic CE models.
of scale validation either leads to the elimination Fourth, the discriminant validity of the dimen-
of some or the retention of all the items, based sions for both CE scales was analyzed by using the
on the theory and context of the study. Thus, HTMT method, as recommended by (Dijkstra and
Table 3. Results of exploratory factor analysis (customer experience scale- branch banking).
Dimensions Statements Factor loading % Variance explained
Factor 1: I feel angry. 0.886 28.466
Affective Negative I get impatient. 0.850
I feel disappointed. 0.844
I get bored. 0.807
Factor 2: I engage in a lot of thinking when I visit the Bank. 0.851 13.289
Cognitive My attention is captured while using the services. 0.853
I am really focused while using the services. 0.672
The Bank’s Branch encourages my curiosity and problem-solving ability. 0.784
Factor 3: Affective I feel wonderful. 0.864 9.382
Positive I feel welcomed. 0.839
I feel happy. 0.810
Factor 4: Social I identify myself with other customers of the Bank. 0.788 6.579
I feel as a part of customers community of the Bank. 0.771
I develop relationships (share/ ask/ receive the opinion or interact) with the Bank staff. 0.754
I live a pleasant social experience while using Branch’s Banking services. 0.604
Factor 5: I usually compare the Bank’s products and services. 0.730 5.420
Behavioral I take an active part in the management of my personal finances. 0.738
I search for information about new products and services. 0.665
I generally review my bank account. 0.710
Factor 6: The Branch allures/ attracts my senses. 0.764 5.111
Sensory The Branch makes strong impression on my visual senses or other senses. 0.668
The Bank’s Branch does not appeal to my senses. 0.642
My senses are involved while using services 0.496
Table 4. Results of exploratory factor analysis (customer experience scale- electronic banking).
% Variance
Dimensions Statements Factor loading explained
Factor 1: I feel angry. 0.903 28.705
Affective Negative I get impatient. 0.861
I feel disappointed. 0.872
I get bored. 0.899
Factor 2: I engage in a lot of thinking while using E-Banking. 0.667 5.033
Cognitive My attention is captured while using E-Banking. 0.801
I am really focused while using E-Banking. 0.814
E-Banking stimulates my curiosity and problem-solving ability. 0.680
Factor 3: Affective Positive I feel wonderful. 0.875 9.230
I feel welcomed. 0.861
I feel happy. 0.817
Factor 4: Social I identify myself with other customers. 0.714 12.054
I feel as a part of E-Banking community. 0.721
I develop relationship (share/ask/receive the opinion or interact) while using E-Banking. 0.773
I live a pleasant social experience while using E-Banking. 0.674
Factor 5: I usually compare the Bank’s products and services. 0.783 6.047
Behavioral I take an active part in the management of my personal finances. 0.630
I search for information about new products and services. 0.738
I generally review my bank account. 0.631
Factor 6: E-Banking allures/attracts my senses. 0.824 6.095
Sensory E-banking makes strong impression on my visual senses or other senses. 0.671
E-Banking does not appeal to my senses. 0.690
My senses are involved while using E-Banking 0.640
Table 5. Measurement model values for branch and electronic banking.

Cronbach’s alpha Rho_A Composite reliability Average variance extracted (AVE)
Branch Electronic Branch Electronic Branch Electronic Branch Electronic
Affective Positive 0.931 0.925 0.931 0.924 0.956 0.951 0.878 0.866
Affective Negative 0.904 0.922 0.909 0.926 0.933 0.947 0.777 0.816
Behavioral 0.721 0.715 0.722 0.728 0.827 0.821 0.544 0.535
Cognitive 0.852 0.737 0.866 0.678 0.899 0.788 0.691 0.504
Image 0.765 0.780 0.781 0.829 0.843 0.853 0.523 0.550
Sensory 0.697 0.773 0.720 0.786 0.817 0.856 0.534 0.600
Social 0.796 0.793 0.819 0.820 0.866 0.864 0.618 0.617
Trust 0.849 0.857 0.863 0.876 0.894 0.898 0.630 0.641
Table 6. Heterotrait-Monotrait ratio (HTMT) for branch banking.

Mean (Std. deviation) Affective positive Affective negative Behavioral Cognitive Image Sensory Social Trust
Affective Positive 5.31 (1.443) 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Affective Negative 2.96 (1.560) 0.504 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Behavioral 5.55 (1.107) 0.408 0.138 0.000 0.000 0.000 0.000 0.000 0.000
Cognitive 5.69 (0.821) 0.162 0.052 0.225 0.000 0.000 0.000 0.000 0.000
Image 5.59 (0.939) 0.729 0.558 0.429 0.249 0.000 0.000 0.000 0.000
Sensory 5.16 (1.016) 0.604 0.414 0.536 0.271 0.686 0.000 0.000 0.000
Social 5.34 (1.056) 0.592 0.396 0.418 0.211 0.703 0.617 0.000 0.000
Trust 5.57 (1.055) 0.658 0.561 0.312 0.181 0.877 0.627 0.665 0.000
Table 7. Heterotrait-Monotrait ratio (HTMT) for electronic banking.

Mean (Std deviation) E-Affective negative E-Affective positive E-Behavioral E-Cognitive E-image E-sensory E-social E-trust
E-Affective negative 2.33 (1.313) 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
E-Affective positive 5.96 (1.073) 0.358 0.000 0.000 0.000 0.000 0.000 0.000 0.000
E-behavioral 5.62 (0.908) 0.231 0.496 0.000 0.000 0.000 0.000 0.000 0.000
E-Cognitive 5.92 (0.608) 0.117 0.172 0.178 0.000 0.000 0.000 0.000 0.000
E-Image 5.69 (0.838) 0.539 0.720 0.644 0.241 0.000 0.000 0.000 0.000
E-Sensory 5.66 (0.953) 0.355 0.530 0.539 0.209 0.668 0.000 0.000 0.000
E-Social 5.60 (0.954) 0.262 0.602 0.596 0.253 0.655 0.625 0.000 0.000
E-Trust 5.96 (0.849) 0.535 0.696 0.585 0.232 0.881 0.613 0.624 0.000
Henseler, 2015). The dimensions of customer expe- for both Branch and Electronic banking by
rience in both the models are found to be having employing the HTMT criterion and the values
their distinct identity, as the values of HTMT of were below the prescribed limits of 0.90 as rec-
traditional and electronic banking (Tables 6 and 7) ommended by (Dijkstra and Henseler, 2015). After
were below the recommended value of 0.90 (Hair assessing the measurement model for all the
et al., 2018). reflective constructs (six dimensions of customer
Thus, the in-depth analysis of EFA and CFA experience, bank image, and trust), the study now
results validates the customer experience scale in moves toward testing the proposed hypothesis
multi-channel banking context. Further, the study through the analysis of structural model.
investigates the relationship between customer
experience dimensions and endogenous con-
structs (image and trust). 5.3.2. Assessing the structural model
After assessing the measurement model of both
channels, a structural equation modeling of cus-
5.3. Objective 2: examining the relationship between
tomer experience dimensions, bank image, and
customer experience dimensions, image, and trust
trust was conducted to estimate the parameters.
5.3.1. Assessing the measurement model Before checking the path coefficients, the model
The outer model values of variables, such as was checked for collinearity issues (Inner VIF
social, cognitive, behavioral, sensory, affective values). All the VIF values were found to be less
negative, and affective positive, except bank image than 3 (Table 8), thus showing no collinearity
and trust have been checked in the earlier sec- issues in the model (Hair et al., 2018). Additionally,
tions. Thus, the present section deals with the the SRMR value was used to check the model fit.
outer model analysis (i.e., reliability and validity) The resulting values of 0.072 and 0.063 for branch
of bank image and trust. From Table 5, we can and electronic banking, respectively, of SRMR
assume the internal reliability and convergent show adequate model fit, being lower than the
validity of the Image and Trust, as the Cronbach threshold limit of 0.08 (Hair et al., 2018). Further,
alpha, Rho_A, and composite reliability were to assess the structural model, the Coefficient of
within the recommended limit of 0.70–0.95 (Hair determination, i.e., R2, Blindfolding (Q2), PLS pre-
et al., 2022). Therefore, supporting the convergent dict and Hypothesis testing and the effect of con-
validity of CFA results. Further, Tables 6 and 7 trol variables were analyzed. Figure 1 shows the
show the discriminant validity of Image and Trust conceptual model of the study.
Table 8. Inner VIF values. followed for both the models. At first, the Qpredict
Image Trust statistics values have been checked for its value
Branch Electronic Branch Electronic
to be greater than 0. After confirming the same,
Affect positive 1.752 1.582 1.951 1.833
Affective negative 1.329 1.158 1.389 1.261 further statistics were analyzed using PLS-predict
Behavioral 1.256 1.381 1.262 1.467 (Table 10). Comparing the MAE values (data
Cognitive 1.071 1.083 1.082 1.090
Image 0.000 0.000 2.053 2.293 being non-symmetric) of PLS-SEM with LM
Sensory 1.569 1.533 1.608 1.585 benchmark in the context of branch and elec-
Social 1.560 1.691 1.686 1.732
Trust 0.000 0.000 0.000 0.000 tronic banking, the model shows medium pre-
Source: Author’s calculation. dictive power (majority or equal number of
MAEPLS predictive error values were lower than
MAELM benchmark values) (Hair et al., 2018).
At the final step, to check the hypothesized
relationships, bootstrapping with 5000
sub-samples and a two-tailed test at 95% confi-
dence level was applied. Table 11 supports
hypotheses H1, H4, H5, H6, and H7 in both
branch and electronic banking contexts. H2 is
partially supported in the branch banking con-
text as the impact of the Cognitive dimension
on image is supported (β =0.076; p<.05), but its
relationship with trust came to be insignificant.
Whereas in the case of electronic banking, the
relation of Cognitive dimension is fully sup-
ported (H2) with image (β = 0.052; p <.05) and
trust (β = 0.042; p< .05). Additionally, the impact
of Behavioral dimension on image and trust (H3)
Figure 1. Conceptual model.
is not supported in the context of branch ser-
vices. Though, in the electronic banking context,
Table 9 shows the composite result with regard H3 is fully supported, as the Behavioral dimen-
to R-square and Q2 values of endogenous variables sion has a positive relationship with image
(image and trust). The R2 values show a moderate (β = 0.194; p < .001) and trust (β = 0.088; p <.01).
impact on both image (R2 = 0.561) and trust (R2 = The result of mediation reveals that image has a
0.626) in the case of electronic banking. In the case complementary mediation effect between all dimen-
of branch banking as well, experience dimensions sions of customer experience and trust in both
show moderate impact on image (R2 = 0.509) and branch and electronic banking as per the decision
trust (R2 = 0.579). Additionally, Stone-Geisser Q2 tree of Zhao et al. (2010). Except for the behavioral
(blindfolding method) was employed to check the (H8c) and cognitive (H8f) dimensions in the branch
model’s predictive power for each endogenous con- banking context, as Image was found to have an
struct. Blindfolding values cross-validated the pre- indirect only mediation effect between cognitive
dictive power of the endogenous variables, as all the dimension and trust in branch context.
variables were greater than 0. Moreover, the blind- Further, to null out the effect of certain demo-
folding result shows a moderate effect size of image graphic variables, both models have been con-
(0.297) and a large effect size of trust (0.453) in the trolled for the effect of age, gender, marital status
case of branch banking, whereas in the case of elec- and qualification over image and trust. Only
tronic banking, it shows a large effect size for both gender showed a significant effect on image in
image and trust. the electronic banking context. In contrast, all
As R2 reveals only the in-sample predictive other variables showed insignificant impact on
power of models, thus, to know the out-of-sample both image and trust for both branch and elec-
predictive power, the Pls-predict method has been tronic banking models.
Table 9. R-square and Q-square.

R-square adjusted Branch Electronic
Endogenous variables Traditional Electronic Q² (=1 − SSE/SSO) Effect size a
Q² (=1 − SSE/SSO) Effect sizea
Image 0.509 0.561 0.297 Medium 0.354 Large
Trust 0.579 0.626 0.453 Large 0.469 Large
a
Based on Q2 value effect size small: 0.02–0.15, medium: 0.15–0.35, large: >0.35.
Table 10. PLSpredict analysis.

Q2_predict MAEPLS MAELM PLS-LM
Indicators of Trust Traditional Electronic Traditional Electronic Traditional Electronic Traditional Electronic
T2/ET2 0.406 0.483 0.741 0.521 0.751 0.518 −0.010 0.003
T1/ET1 0.212 0.359 0.954 0.540 0.956 0.541 −0.002 −0.001
T4/ET4 0.334 0.167 0.775 0.872 0.776 0.821 −0.001 0.051
T5/ET5 0.217 0.391 0.895 0.553 0.873 0.553 0.022 0.000
T3/ET3 0.349 0.360 0.747 0.622 0.754 0.623 −0.007 −0.001
Table 11. Hypothesis testing.

Standard deviation T Statistics (|O/
Original sample (β) (STDEV) STDEV|) p Values Supported
Hypothesis Relationships Traditional Electronic Traditional Electronic Traditional Electronic Traditional Electronic Traditional Electronic
H1a Social -> Image 0.248 0.135 0.039 0.037 6.724 3.620 .000*** .000*** Yes Yes
H1b Social ->Trust 0.162 0.098 0.035 0.033 4.895 2.959 .000*** .003** Yes Yes
H2a Cognitive ->Image 0.076 0.052 0.035 0.023 2.302 2.098 .021* .036* Yes Yes
H2b Cognitive -> Trust 0.004 0.042 0.035 0.023 0.132 2.026 .895 (NS) .043* No Yes
H3a Behavioral -> Image 0.055 0.194 0.032 0.035 1.845 5.666 .065 (NS) .000*** No Yes
H3b Behavioral -> Trust −0.046 0.088 0.029 0.032 1.673 2.762 .094 (NS) .006** No Yes
H4a Sensory -> Image 0.248 0.152 0.036 0.034 3.750 4.374 .000** .000*** Yes Yes
H4b Sensory -> Trust 0.089 0.069 0.034 0.031 2.451 2.250 .014* .024* Yes Yes
H5a Affective Positive -> Image 0.311 0.331 0.037 0.035 8.528 9.574 .000*** .000*** Yes Yes
H5b Affective Positive > Trust 0.141 0.208 0.035 0.036 4.230 5.729 .000*** .000*** Yes Yes
H6a Affective Negative -> −0.171 −0.212 0.028 0.028 6.112 7.853 .000*** .000*** Yes Yes
Image
H6b Affective Negative -> Trust −0.150 −0.165 0.030 0.027 5.160 6.115 .000*** .000*** Yes Yes
H7 Image -> Trust 0.426 0.385 0.037 0.038 11.552 9.707 .000*** .000*** Yes Yes
H8a Affective Positive -> Image 0.133 0.127 0.020 0.020 6.861 6.379 .000*** .000*** CM CM
-> trust
H8b Affective Negative -> −0.073 −0.081 0.013 0.013 5.436 6.174 .000*** .000*** CM CM
Image-> Trust
H8c Behavioral -> Image-> 0.024 0.076 0.014 0.016 1.815 4.816 .070 (NS) .000*** NE CM
Trust
H8d Sensory -> Image-> Trust 0.059 0.061 0.016 0.014 3.443 3.968 .001** .000*** CM CM
H8e Social -> Image -> Trust 0.105 0.056 0.018 0.015 5.771 3.469 .000*** .001** CM CM
H8f Cognitive -> Image-> Trust 0.032 −0.004 0.016 0.009 2.280 2.029 .023* .043* IO CM
DO: direct only (non mediation); CM: complementary mediation; IO: indirect only mediation; NE: no effect nonmediation
***Significant at p < .001, **significant at p < .01, *significant at p < .05, and NS implies “Not Significant”.
5.4. Objective 3: comparison of relations between channels, the regression weights differ for their
branch and electronic banking models impact on image and trust. The dimensions such
As can be seen from Table 11, certain dimensions as affective positive (β = 0.331, 0.208) and affec-
work better in the case of branch banking as tive negative (β = −0.171, −0.150) are seen as
compared to electronic banking and vice versa. having stronger influence on image and trust in
The Cognitive dimension has its impact on trust the case of electronic banking as compared to
in electronic banking (significant at p< .05), branch banking. The social dimension, on the
whereas it has albeit different scenario in the other hand, has a higher significant impact on
case of traditional banking (non-significant). trust in branch banking (p <.001) as compared
Oppositely, the behavioral dimension can be seen to the electronic (p <.01) one. On the other hand,
as having impact on both image and trust in the sensory (β = 0.248, 0.089) and social dimensions
case of electronic banking but not in the case of (β = 0.248, 0.162) have a higher influence over
traditional banking. Even in cases where the rela- image and trust. Whereas, cognitive dimension
tions are significant in the context of both has a higher influence on trust (β = 0.072) in the
case of branch banking as compared to electronic customers’ minds. As well as disappointment and
banking. Moreover, the impact of image on trust impatience (i.e., negative emotions) being the
is found to be higher in the case of traditional outcome of employees’ defeatist attitude, reduces
(β = 0.426), compared to electronic (β = 0.385) the trust toward the bank.
channels. After the affective dimension, the social dimen-
Additionally, the mediation effect of the image sion has the highest impact on trust, second
varies between the models in the case of behav- highest on bank image in the branch context,
ioral and cognitive dimensions. Furthermore, the and the second highest on trust in the electronic
overall variance in Image and Trust is explained context. Thus, showing a significant level of cus-
higher in the electronic banking model (56.1% tomer relational aspect with the staff and other
and 62.6%), compared to the branch banking customers. The significance of social/relational
model (50.9% and 57.9%). Thus, the result con- dimension amongst all other dimensions can be
firms H9, that the relation of customer experi- traced back to the study by Nysveen et al. (2013),
ence dimensions on image and trust varies with who highly recommended this dimension. How
the channel in consideration. well the complaints are resolved, or the level of
courteousness shown by the personnel and sense
of belongingness, describes the overall influence
6. Discussion
over image and trust formation in customers’
The study contributes to the literature by offering minds. That is in the obvious case is much more
an in-detail comparison of the relation between evident in traditional banking, compared to the
customer experience dimensions, image, and trust electronic channels, which possess lesser ways to
in branch and electronic banking. Thus, the develop a sense of belongingness and relational
research caters to the analysis of four-dimensional aspects over the chat forums or feedback groups.
relations: experience with bank image/branch The sensory dimension stands at second posi-
context, experience with bank image/electronic tion in influencing image in the branch banking
context, experience with trust/branch context and context. In contrast, it holds third place in influ-
experience with trust/electronic context. encing image in electronic and trust in the
Though, the literature has a scant interest in branch context. Additionally, it stands at second
studying the impact of emotions on image and last place in influencing trust in electronic bank-
trust. But results of the study revealed that it is ing. As for the fact that banking industry is more
the affective (positive) dimension having the functional, structural and rigid and thus can be
highest impact on the image in the context of perceived as less stimulating or sensorial (Brun
both models (also supported by Ladhari et al. et al., 2017; Chahal & Dutta, 2015). Moreover,
(2011)) and trust in the electronic context, though this dimension is more workable in physical set-
having the second highest impact on trust in tings than online because 3 out of the 5 senses
branch context. Literature also confirms that the do not work in a virtual environment (Brun
psychological and functional perspectives, such et al., 2017; Fernández-Sabiote & Román, 2012).
as friendly nature, warm welcome, and congenial Thus, supporting the literature, the finding
environment, quality services, better servicescape, reveals that the sensory dimension has higher
etc., create positive emotion and consequently influence in branch context than in an electronic
create a positive image in the minds of the cus- one. Additionally, the result of the analysis shows
tomer. On the other hand, this positive environ- how the subtle impressions of the premises or
ment and emotions generate trust in an the e-banking modules, attract and involve the
organization. Moreover, opposite to the positive senses to form an image in the customers’ minds,
emotions, the affective negative dimension also based on a few significant attributes. Contrary
showed a significant negative influence over both to the findings by Rajaobelina et al. (2018), the
constructs. As the negative behavior of the branch results of this study show the influence of sen-
staff or non-congenial environment etc., in the sory experience in the creation of trust factors,
bank premises create a negative image in the as these minimal senses can enhance trust toward
the organization. Thus, the findings fill the between experience dimension and trust, author
research gap, as no such study till date has has made addition to the literature on how var-
searched for the relation of sensory dimension ious dimensions of experience can help in build-
with that of the image in the context of multi- ing image, which along with experience can
channel banking. further aid in forming unwavering trust in the
Further, the Behavioral dimension has a second Multichannel Banking customers’ minds.
and third position in influencing image and trust, Moreover, the researcher also made a significant
respectively, in the electronic context. However, contribution to the literature by providing an
being non-significant in influencing image and in-depth comparison on how these relations work
trust in the branch banking context, also sup- in both traditional and modern banking systems.
ported by Rajaobelina et al. (2018). Thus, shows Thus, the dimensions of experience can be used
the irrelevance of dimension in the context of and modified in forming image and trust as per
branch, as the customers show less activeness in the channel in consideration. Since, experience
searching for information or comparing products is not something that could be packed and served
in the branch premises compared to the mobile to every customer; rather it needs to be tailored
and net banking interfaces. and served as per the requirement of the target
At last, the cognitive dimension has the least audience (Mascarenhas et al., 2006). Further, this
significant impact in forming bank image in the study also provides implications for managers as
branch context and trust in an electronic context. to how they can practically work on the various
Whereas, being insignificant in the case of elec- experiential dimensions in formulating multi-
tronic banking image formation. Therefore, con- channel banking strategies, to hold high trust
trary to the study’s hypothesis, new information value and create a better image in the minds of
and ideas do not possess higher importance in the customer. As per the analysis, the positive
image formation. and negative affective dimension is only the most
significant dimension working parallel for the
endogenous constructs in the multichannel bank-
7. Theoretical and managerial implications
ing system. Accordingly, management needs to
The research catered to three objectives that have take care of the affective part, right from the first
significant theoretical as well as managerial impli- interaction with customers that provides a wel-
cations. First of all, the customer experience scale coming feel through the branch premises or the
as proposed by Schmitt (1999) and accepted by web interfaces. By adequately managing staff,
various authors (Gentile et al., 2007; Mascarenhas servicescape, and web interfaces, the management
et al., 2006; Pine II & Gilmore, 1998; Verhoef shall induce feelings of happiness and delightful-
et al., 2009) has been validated through the dual ness. On the other side, much care is needed to
application of EFA and CFA in this study in a extinguish the feelings of boredom, impatience,
multichannel banking context. Thus, by validating and disappointment by providing proper training
this scale, author has contributed to the literature to the personnel as well as by working on speedy
by providing a scale that can work in both tra- and efficient e-banking systems to nullify the
ditional and electronic contexts simultaneously, negative emotions. The relational aspect as well
which was the need of an hour and was missing has significant role on the image (in branch
till date (Khons et al., 2022). Therefore, future banking) and trust (both branch and electronic
researchers can use the same for studying cus- banking); thus, listening to customer complaints
tomer experience in a multichannel banking con- and the quick redressal mechanism is the need
text. Second, dearth of studies in literature has of the time. Another affluential dimension in the
concentrated on the relation between customer case of e-bank image is the Behavioral one, which
experience dimensions, bank image, and trust in provides implications for managers to provide
a context other than mono-channel banking. detailed information on products and services to
Thus, by examining relations between these con- compare and choose in their electronic format.
structs and the mediation effect of bank image Last but not least, this study contributed to how
apart from the customer experience dimensions, Disclosure statement

the bank image has the highest direct influence No potential conflict of interest was reported by the authors.
over trust. As well as it has a significant medi-
ating effect between experience dimensions and
trust. Hulten (2011) also concluded in his article ORCID
that it is the multi-sensory brand experience that
Nidhi Verma http://orcid.org/0000-0003-3471-1081
ultimately induces individuals’ minds to create Mandeep Kaur http://orcid.org/0000-0002-4607-0667
image of brands/services, etc. Therefore, the man-
agers should focus on improving customer expe-
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Journal of Global Marketing

2023, VOL. 36, NO. 2, 141–164

Examining the Relationship Among Customer Experience, Bank Image,

1. Introduction (Brakus et al., 2009). Marketers have realized that

designing and production of goods and services. 3.5. Affective dimension

Table 2. Demographic profile of respondents.

of using their selected e-banking channel. Whereby, 5. Results

Table 5. Measurement model values for branch and electronic banking.

Table 6. Heterotrait-Monotrait ratio (HTMT) for branch banking.

Table 7. Heterotrait-Monotrait ratio (HTMT) for electronic banking.

Table 9. R-square and Q-square.

Table 10. PLSpredict analysis.

Table 11. Hypothesis testing.

apart from the customer experience dimensions, Disclosure statement

Fernández-Sabiote, E., & Román, S. (2012). Adding clicks squares-structural-equation-modeling-pls-sem/book2

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