The Roles of Reputation on Retention and Cross-buying in Premium Banking Services

Abstract

This study explores how reputation affects customer retention and cross-buying in premium banking services. In this study we suggest retention and cross-buying as the extension of continuance commitment for more comprehensive and objective measurement in a long-term commitment. A quantitative study was undertaken with 525 respondents in a main city in Australia. Results indicate that whilst reputation influenced customer retention, it has no impact on cross-buying. The findings also provide insights into how customer retention could be extended into cross-buying for more profitable customers. One of the recommendations in the study is due to customer passiveness; customer-oriented strategy could be applied. Implications of our research are discussed as well as limitations and guidelines for future research.