Repurchase intention: the effect ofsimilarity and client knowledge

Halimin HerjantoH-E-B School of Business and Administration, University of the Incarnate Word,

San Antonio, Texas, USA, and

Muslim AminSchool of Management and Marketing, Faculty of Business and Law,

Taylor’s University, Subang Jaya, Malaysia

Abstract

Purpose – The objective of this study was to investigate the effect of appearance, lifestyle and statussimilarity on interaction intensity, satisfaction with a banker and repurchase intention. Also examined was themoderating effect of client knowledge in the enhancement of customer satisfaction with a banker.Design/methodology/approach – A total of 800 questionnaires using the snowball sampling techniquewere performed to distribute the questionnaires to bank customers at different ethnic community centers inNew Zealand. A total of 377 useable questionnaires were collected for further analysis.Findings – The findings indicated that the three types of similarity affect interaction intensity differently.Lifestyle similarity was found to positively influence interaction intensity. The similarity constructs ofappearance and status were found to have an insignificant relationship with interaction intensity. The findingsshow that appearance similarity and interaction intensity are able to enhance customer satisfaction with abanker. Customer satisfaction with a banker has a significant relationship with repurchase intention. Clientknowledge influences the degree of interaction intensity and satisfaction with a banker.Practical implications – The findings of this study help bankers to understand the importance of theirsimilarities with a customer and to design recruitment strategies and training sections to improve customersatisfaction.Originality/value – This study contributes to the body of knowledge by incorporating interaction intensity,similarity and satisfaction with a bank into the repurchase intention model.

Keywords Interaction intensity, Similarity (appearance, lifestyle, and status) satisfaction with a bank and

repurchase intention, New Zealand

Paper type Research paper

1. IntroductionNewZealand has an open-door immigration policy and is subsequently a countrywith a greatdeal of diversity. As reported by Statistics NZ (2019), more than 100,000 short-terminternational visitors, and new permanent and long-term migrants from all over the worldarrived in New Zealand in 2018. New Zealand businesses, especially banks, recognize thatthis significant influx hasmassive future potential for the businessmarket. This potential hasattracted several giant Asian multinational banks to New Zealand, including ChinaConstruction Bank, ICBC and Bank of China (Gaynor, 2018), as well as Bank of India andBank of Baroda (NBR, 2011), to operate branches and compete with local, Australianand internationally owned banks. According to Chuah (2018), the Head of Migrant Bankingand Customer Segments at ANZ National Bank, migrant customers are a fast-growingsector and are helping to increase bank performance. Many migrants are wealthy (Oliver,2003), innovative (Chin, 2018), hardworking and their entrepreneurial mindset cansignificantly contribute to New Zealand’s export and economic growth (Herrick, 2015).

Banks are currently attempting to establish a relationship with their migrant customersby providing different types of banking products and services to fulfill these customers’financial and banking needs. For example, banks work with local government and foreignconsulates, as well as other businesses (e.g. law firms, media, ethnic communities and

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The current issue and full text archive of this journal is available on Emerald Insight at:

https://www.emerald.com/insight/0265-2323.htm

Received 15 March 2020Revised 31 May 2020

29 June 2020Accepted 29 June 2020

International Journal of BankMarketing

© Emerald Publishing Limited0265-2323

DOI 10.1108/IJBM-03-2020-0108

business owners), to stage “migrant expos” which are specifically designed to help migrantcustomers smoothly integrate to their new life and the banking system in New Zealand.Banks have also opened migrant branches with a dedicated multi-ethnic and multilingualteam to provide a range of unique products and services to fulfill the needs of migrantcustomers (ANZ Bank, 2014). Migrant customers are also able to open a New Zealand bankaccount and apply for a home loan from their home country before they arrive in NewZealand(Westpac, 2019).

Gaur et al. (2012) point out that the banks’ initiative to provide such services is to gain abetter understanding of diverse markets and to strengthen the relationship with migrantcustomers. Furthermore, Gaur et al. (2012) argue that a bank’s long-term relationship with itscustomers relies on bankability to develop similarity with prospective customers.Researchers have found mixed results concerning buyer–seller similarity. Several studieshave established that similarity improves liking (Sprecher, 2013), attraction (Tidwell et al.,2013), commitment and trust (Avery et al., 2008) and creating and maintaining fruitfulbusiness relationships (Brashears, 2008). In the banking context, customers from differentcultures and countries will always compare their present banking experience with theirbanking experience of the past; they will also rely on the experiences other members of theirethnic group have with a particular bank (Herjanto and Gaur, 2011). For this reason,similarity involves an assessment of the buyer’s belief that a salesperson will share collectiveinterests and values (Bonnefon et al., 2017); therefore, similarity with customers is anextremely effective relationship-building strategy (Palmatier et al., 2006; Kunz andSeshadri, 2015).

Although the relationship between similarity and customer satisfaction exists, there ismuch to be understood about this relationship. Traditionally, firm–customer relationshipsevolve over time based on experiences and are dependent on strengthening customerinteractionwith a firm. For example, Van Zalk andDenissen (2015) emphasize that customersinteract more frequently with sellers when they receive more information about the sellers,thus minimizing their uncertainty about future behaviors and improving their relationship.In addition, consumers who are motivated to interact with sellers (Kwok and Xie 2018;Kachersky et al., 2014) and utilize their time well during interactions (Ankitha and Basri,2019) will significantly contribute to building successful relationships. In spite of academicrecognition of the critical role interaction plays in firm–customer satisfaction relationships,the effect of similarity, interaction intensity and customer satisfaction with a banker has beenless researched. A high level of interaction is an essential condition in the similarity–customersatisfaction relationship.

Banking services are intangible, complex and customized, and the relationship betweencustomer and banker is vital. A basic principle of this relationship is to create repurchaseintention. Most scholars have demonstrated that the main challenge in the banking industryis to retain and enhance existing relationships rather than attracting new customers(Palmatier and Crecelius, 2019; Sayil et al., 2019; Yu and Tseng, 2019). Although theimportance of customer satisfaction in developing repurchase intentions is emphasized in thebank marketing literature (Adel, 2019; Amin, 2016; Boateng, 2019), studies have failed toidentify the role of client knowledge in influencing these relationships. In this study, clientknowledge is measured as a moderator that affects interaction intensity and customersatisfaction relationships with a banker. As relationships grow, customers will become moreknowledgeable of products and services, which in turn will increase customers’ confidenceand desire to maintain relationships with a bank (Amin, 2016; Palmatier et al., 2006).Therefore, the objective of this study is to investigate how similarity and interaction intensityenhance customer satisfaction with a banker and customer repurchase intentions. Anotherobjective is to identify the moderating effect of client knowledge on the relationship betweeninteraction intensity and customer satisfaction with a banker. A better understanding of

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these concepts will provide a significant contribution to the banking industry’s desire tomaintain relationships with their customers. The study will also provide a significantcontribution to researchers through two insights: more comprehensive knowledge ofsimilarity, interaction intensity and customers’ satisfactionwith a banker and the importanceof client knowledge in enhancing customer satisfaction with a banker and customerrepurchase intentions. In addition, this study highlights how similarity, interaction intensityand client knowledge delimit commercial relationship outcomes.

2. Literature review and hypothesis development2.1 Repurchase intentionIn the banking context, customer repurchase intention reflects the desire to upgrade, switchor buy new banking products. For example, a customer may increase the limit of their creditcard or loan, swap an existing product to a similar or new product, such as from a traditionalsavings account to a newly introduced savings account or term deposit or buy alternativeproducts such as investment and wealth management products. In most cases, customers arenot involved with these transactions regularly and in most cases, these transactions do notinvolve fresh money. That is, customers move their funds from one account to anotheraccount within the same bank. However, despite the lack of fresh money, these transactionsare crucial to the bank as the more willing customers are to keep their accounts or start newones, the less potential there is for them to switch (Amin et al., 2011). In this study, repurchaseintention refers to a customer’s positive decision to maintain their current accounts andperform future transactions with their bank (Hume and Mort, 2010). Scholars believe thatrepurchase intention is based on less perceived risk (Wu and Chiang, 2007) and satisfactionwith the overall product and service performance of their bank over time (Hume and Mort,2010). Repurchase intention is also an expression of loyalty (Amin, 2016; Zhang et al., 2011),commitment (Kim and Ok, 2009; Tabrani et al., 2018) and a sign that the bank is doing its jobcorrectly (Lee et al., 2011). Moreover, repurchase intention provides a bankwith a competitiveadvantage because it helps the bank to gain positive word of mouth (WOM) (Mero, 2018),lower customermaintenance costs (Rojas-Mendez et al., 2009) andmaintain bank profitability(Okharedia, 2013). Consequently, Ekaputri et al. (2016) assert that repurchase intention isvery important for bank sustainability. Korir et al. (2012) argue that customer repurchaseintention is a complicated and subjective decision-making process. During this process,timing and different stimuli (i.e. psychological, cultural, personal, technical and productcharacteristics) affect a customer differently and therefore it is difficult to understand whichstimuli are more powerful at a given time. Therefore, researchers have continuouslyinvestigated the repurchase intention phenomena (Kim and Ok, 2009). In this paper, theauthor hypothesizes that interaction intensity, satisfaction with a banker and similarity arethe chief determinants of repurchase intention.

2.2 Customer satisfaction with banker and repurchase intentionsAccording to Clark and Hwang (2000), satisfaction with a banker refers to a customer’spositive emotional and cognitive perceptions of their overall interaction experiences withtheir banker. During buyer–seller interactions, a customer evaluates their overall experiencewith their banker (Chiu et al., 2012) and decides whether the experience meets theirexpectation (Kincade et al., 2002). The more a banker confirms a customer’s expectation, themore the customer is satisfied (Papaionanou et al., 2013). Rutherford (2012) suggests thatpositive emotional reaction is a combination of economic and non-economic satisfaction. Inthe banking context, economic satisfaction reflects direct and tangible financial rewards – forexample, a lower interest rate for a home loan or a fee-waiver for a credit card annual fee. On

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the other hand, non-economic satisfaction is broader, intangible and multifaceted. Thisincludes a banker’s ethical behavior (Roman and Ruiz, 2005), personality (Clark and Hwang,2000), knowledge (Steward, 2008), selling and service orientation (Kim, 2011), culturalsensitivity (Gaur et al., 2019), communication and listening skills (Aggrawal et al., 2005) andafter-sales communication (Pawar, 2014). Customer satisfaction with a banker is crucial tobank sustainability because a high degree of satisfaction improves the sense of overallsatisfaction with the bank (Amin et al., 2011; Amin et al., 2013; Preis, 2003) and promotes abetter quality buyer–seller relationship (Lee et al., 2011), commitment (Rutherford, 2012;Tabrani et al., 2018), positive brand attitude (Choi and Choo, 2016) and ultimately higherrepurchase intention (Amin, 2016; Kitapci et al., 2014). Based on this argument, therefore, it isreasonable to hypothesize:

H1. Customer repurchase intention is positively correlated with customer satisfactionwith a banker.

2.3 Interaction intensityInteraction intensity or frequency refers to the number of interactions per unit of timebetween buyers and sellers (Ankitha and Basri, 2019; Palmatier et al., 2006). A high level ofinteraction intensity empowers buyers and sellers to improve the level of information flowandminimize uncertainty (Herjanto andGaur, 2011). Furthermore, Lin (2012) emphasizes thatinteraction intensity fosters trust by providing buyerswith information that will benefit themto foresee the salesperson’s future outcome. In addition, Contractor et al. (2011) explain thatinteraction intensity describes the effort by a salesperson to retain communication frequencywith a customer and thus commitment to sustaining the relationship. Moreover, Lin andHsieh (2011) suggest that maintaining high-level contact services require extensiveinteraction between customers and firms to achieve successful outcomes based on highcustomer intimacy, high communication duration and rich information exchange (Lovelockand Wirtz, 2007). Consequently, frequent interactions play an important role in developing abetter understanding and communication between the buyer and the sales agent (Ankithaand Basri, 2019). A high level of customer interaction indicates a robust link betweencustomers and the firm (Islam and Rahman, 2016). Customers tend to build relationships thatsupport their beliefs, feelings and behavior and thus minimize psychological rigidity inmaintaining relationships (Gaur et al., 2019). For this reason, understanding the role ofinteraction intensity in building customer–firm relationships will provide a practicalguideline for bankers who seek to strengthen their relationships with customers.

Prior literature has proposed several potential antecedents of interaction intensity. In thefinancial services context, the more extensive a relationship, the greater the investment bothparties make in the relationship, and the greater the prospect for the experience-based benefitto accumulate (Dagger et al., 2009; Doney and Cannon, 1997). For example Anderson andWeitz (1989) explain that interaction intensity establishes an important relationship betweencustomers and firms, and consequently will increases customer loyalty and retention (Yu andTseng, 2016), as well as high sales, profits and market share (Crosby et al., 1990). Socialcognitive theory suggests that healthy customer banker interactions are responsible forcustomer satisfaction with a banker. Based on this, Lin and Hsieh (2011) maintain thatfriendly interactions between buyers and sellers result in a positive emotional response thatcreates a bond between customers and banker. Consequently, the range of customer serviceactivities provided by a bank directly contributes to the enhancement of customersatisfaction, positive WOM, customer loyalty and repurchase intention (Balaji, 2015; Bojeiet al., 2013; Dwivedi, 2015; Price and Arnould, 1999). More specifically, Boateng (2019)clarifies that interactivity between customers and banker has a significant influence on

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customers’ intention to patronize a bank. Therefore, Lin and Hsieh (2011) indicate thatfriendly interactions between customers and banker create positive emotional responses thathelp build strong relationships. Thus, it is hypothesized:

H2a. Customer satisfaction is positively correlated with interaction intensity.

H2b. Customer repurchase intention is positively correlated with interaction intensity.

2.4 SimilarityBuyer–seller similarity has been widely studied in the marketing literature and is frequentlyused as a theoretical framework to study the dyadic relationships between sellers and buyers(Coad et al., 2017; Crosby et al., 1990; Montoya et al., 2008; Rajaobelina and Bergeron, 2009;Smith, 1998). According to buyer–seller similarity business theory developed by Lichtenthaland Tellefsen (2001), similarity is when a salesperson shares similar traits to a buyer, such asage, gender, birthplace and education, which helps build their bond-relationship (Kwok andXie, 2018). Lichtenthal and Tellefsen (2001) classify salesperson traits as internal orobservable characteristics that can help in determining similarity. In this definition, buyerswho perceive a salesperson to be similar to themselves expect the salesperson to similarvalues expressed through behaviors, goals and dogmas, which consequently makes it easierfor buyers to predict the salesperson’s future behavior (Doney and Cannon, 1997). Accordingto Churchill et al. (1975) the concept of similarity can be conceptualized as visible and variablesimilarities. Visible similarities refer to common characteristics such as physical appearancecharacteristics, while variable similarities refer to psychological characteristics such aslifestyle and status (Swami et al., 2007). Although definitions of similarity vary, most scholarsfollow the similarity construct theory (Crosby et al., 1990), which consists of appearance,status and lifestyle similarity. Appearance refers to appearance, dress, mannerisms, speechand personality similarity. Status represents education, income and social class similarity.Lifestyle refers to family situations, interest, political views and values similarity (Crosbyet al., 1990; Gaur et al., 2012).

2.4.1 Appearance similarity. Crosby et al. (1990) suggest that appearance similarity is themost visible and the easiest to recognize. Such similarity includes ethnicity, mannerisms andpersonality (Benbasat et al., 2020; Hanks et al., 2020; Dunlop and Beuchamp, 2011). In thebanking industry, Berscheid and Reis (1998) consider appearance similarity as key totriggering buyer–seller interactions. This is because appearance similarity is the firstcharacteristic that a customer encounters in a banker and it serves as a deciding feature inwhether a customer feels comfortable to approach and interact with the banker. In otherwords, a high degree of appearance similarity generates a high level of banker attractiveness(Lichenthal and Tellefsen, 2001), greater customer comfort (Losin et al., 2017), and moreimportantly, it determines a customer’s desire for future interactions (Peretti and Abplanalp,2004). Appearance similarity improves trust (Losin et al., 2017) and encourages a customer toshare information beyond their financial information (Amodio and Showers, 2005). Thispersonal information helps a banker to understand a customer’s situation and thus allowsthem to reduce a customer’s potential financial risks and improve their financial rewards byrecommending better and more suitable banking products or services. As a result, thecustomer experiences a positive outcome and views the banker as an advisor (Wuyts et al.,2002). When this situation occurs, a customer is more likely to appreciate a banker’s effort intaking care of them and accordingly, a customer feels satisfied with the banker (Gaur et al.,2012) andmore likely to make future purchases (Lichenthal and Tellefsen, 2001). Thus, basedon the arguments above, the present study hypothesizes:

H3a. Buyer–seller appearance similarity positively affects buyer–seller interactionintensity.

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H3b. Buyer–seller appearance similarity positively affects customer satisfaction with abanker.

H3c. Buyer–seller appearance similarity positively affects customer repurchaseintention.

2.4.2 Lifestyle similarity. In the banking context, lifestyle refers to a customer’s personalchoice on how they live their life (Sathish and Rajamohan, 2012). In general, lifestyle relates toa customer’s activities, interests and opinions (Krishnan, 2011), which include familysituations, personal interests, political views and personal values (Kwak and Ingersoll-Dayton, 2020; Crosby et al., 1990). Herawati et al. (2019) suggest that a customer’s lifestyledetermines their future customer behavior. In the banking industry, when a banker shares alifestyle similaritywith a customer, the banker can predict the customer’s future behavior andmore importantly, the banker can personalize their communication with the customer(Lelakos and Giaglis, 2007). Hobman et al. (2003) suggest that lifestyle similarity is anecessary element inmaintaining relationship quality between buyer and seller. According toBenn (2003), similarity allows a customer to treat a banker as one of their in-group members,reduce relationship conflicts and enhance group harmony (Hobman et al., 2003) and increase acustomer’s sense of assurance and stability (Zajadacz and Sniadek, 2013). In addition,discovering lifestyle similarity encourages a customer to remain in good communication withtheir banker (Crutchfield et al., 2003). Crutchfield et al. (2003) note that lifestyle similarityallows a customer to explore their banker’s attitude and personality before they committhemselves to the banker. When a customer finds a banker shares similar attitudes andvalues, they regard the banker as like-minded, and this increases their desire for a stable(Amodio and Shower, 2005) and committed relationship (Duffy and Ferrier, 2003). Thus, it ishypothesized that:

H4a. Buyer–seller lifestyle similarity positively affects buyer–seller interactionintensity.

H4b. Buyer–seller lifestyle similarity positively affects customer satisfaction with abanker.

H4c. Buyer–seller lifestyle similarity positively affects customer repurchase intention.

2.4.3 Status similarity. Status similarity is regarded as one of the chief components ofstrong interpersonal connections (Dong et al., 2020; Reagans, 2011). A customer who sharesstatus similarity with a banker has fundamental characteristics in common, such asoccupation, income (Crosby et al., 1990), knowledge (Reagans, 2011) and economic well-being(Knigge et al., 2014). This similarity allows a banker to reduce a customer’s ambiguity and togenerate a sense of security and compatibility. As a result, the customer feels that the bankertreats them fairly and consequently, the customer chooses to maintain their alliance with thebanker and to seek further collaboration (Chung et al., 2000). In the banking industry, sharingstatus similarity means that a customer and a banker complement each other. For example, abanker can share their financial knowledge with a customer while also learning about otherbanks’ products and services from the customer. In this situation, a customer views a bankeras a partner who is committed to improving their welfare by cooperatingmore effectively andproviding fair treatment and beneficial products or services. Therefore, when a positiveperception exists, a customer will exhibit a higher appreciation and share their real opinionsabout the bank’s products and services (Gaur et al., 2012). Accordingly, based on thisinformation, a banker will be able to satisfy a customer by tailoring the bank’s services andoffering more suitable products. Chung et al. (2000) conclude that status similarityencourages buyer–seller alliances. Bellieveau et al. (1996) suggest that status similarityaffects an individual’s social capital and influences how a customer views a banker based on

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the banker’s affiliation with their social network. A customer perceives a banker who sharesthe same social capital as having a similar work ethic and responsibilities, and this similarityimproves the banker’s likability (Nahemow and Lawton, 1975) as well as the mutualunderstanding (Crutchfield et al., 2003) and trust (McPherson et al., 2001) between thecustomer and banker, and ultimately the customer’s repurchase intention (Banik and Gao,2020). Therefore, it is hypothesize that:

H5a. Buyer–seller status similarity positively affects buyer–seller interaction intensity.

H5b. Buyer–seller status similarity positively affects customer satisfaction with abanker.

H5c. Buyer–seller status similarity positively affects customer repurchase intention.

2.5 Client knowledge as a moderatorClient knowledge is defined as a customer’s recognition and understanding of products andservices (Grable et al., 2020; Nora, 2019; Rossanty and Nasution, 2018). A customer’s buyingand consumption experiences, as well as their information exposures to marketing and non-marketing sources, determine the degree of their product familiarity and product knowledge(Nguyen et al., 2015). As a result, Thomas and Mills (2006) believe that product knowledgegenerates a customer’s perception of a product and provides guidance in the purchasingdecision-making process. A customer with lower product knowledge has limited informationand therefore does not have the ability to understand the advantages/disadvantages of aproduct and to compare it with alternative products or services (Tariq et al., 2013). In contrast,a customer with higher product knowledge knows the attributes and the structures of theproduct and can therefore compare it with alternative products (Smith, 2000). Consequently,in the banking context, a customer with higher product knowledge has more confidence inmaking good financial decisions, whereas a customer with lower product knowledge isuncertain and tends to seek help whenmaking financial decisions. In sum, the higher the levelof product knowledge, the less financial issues a customer will experience (Rossanty andNasution, 2018).

In addition, customer satisfaction serves as the fundamental component of a bank’sprofitability and sustainability (Caruana, 2000). To improve customer satisfaction, modernbanks rely heavily on the abilities and efforts of their bankers to maintain relationships(Rahmani-Nejad et al., 2014) through interaction intensity (Scharitzer and Kollarits, 2000).Wuyts et al. (2002) believe that buyer–seller interaction intensity allows bankers tounderstand their customers personally and thus offer suitable and error-free products orservices. However, the frequency and duration of interaction intensity depend on customers’product knowledge (Tariq et al., 2013). That is, the lower the customers’ product knowledge,the higher the interaction intensity. Thus, it is reasonable to hypothesize:

H6. The degree of a customer’s knowledge moderates the relationship betweeninteraction intensity and the customer’s satisfaction with a bank.

3. Methodology3.1 Data collection processRespondents who have bank accounts at commercial banks in New Zealand were selected asthe sample. A pilot study was conducted with bank customers and 50 respondentsparticipated. Minor modifications and refinements were made to ensure validity and clearunderstanding of the content. A snowball approach was used whereby a total of 800questionnaires were distributed to bank customers at different ethnic community centers and

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return envelopes were attached. To control respondents, customers needed to have aminimum of one-year experience with New Zealand banks and be at least 20 years of age. Atotal of 377 useable questionnaires were collected for further analysis. Table 1 shows thedemographic profiles.

3.2 Questionnaire developmentAll the items used in this present study were adopted and adjusted from the publishedliterature. Multiple items for measuring similarity in appearance, status and lifestyle wereadopted from Crosby et al. (1990). Three items fromDoney and Cannon (1997) were borrowedand adjusted to measure interaction intensity. The construct of customer satisfaction with abanker wasmeasured using four items fromRamsey and Sohi (1997). Items fromKumar et al.(1995) were drawn to measure repurchase intention, and the items to measure clientknowledge were taken and modified from Flynn and Goldsmith (1999). A seven-point Likertscale ranging from strongly disagree (1) to strongly agree (7) was employed to measure eachconstruct.

4. Data analysisFollowing the recommendation from Hair et al. (2019), two analytical techniques wereconducted in this study: the measurement model and the structural model (hypothesistesting).

4.1 Measurement modelTo assess the measurement model, internal consistency reliability, convergent validity anddiscriminant validity were identified. Table 2 provides the measurement results: Cronbach’salpha ranged from 0.802 to 0.938, composite reliability (CR) ranged from 0.884 to 0.956 and theaverage variance extracted (AVE) ranged from 0.558 to 0.844, indicating that constructvalidity was established (Anderson and Gerbing, 1988; Hair et al., 2012). In this study, twoapproaches were used to confirm discriminant validity: the Fornell–Larcker procedure(Fornell and Larcker, 1981) and the heterotrait–monotrait (HTMT) technique (Sinkovics et al.,2016). Table 3 shows the results of the Fornell–Larcker calculation explaining that the squareroot of AVE between each pair of factors was higher than the correlation estimated between

Characteristics Frequency (%) Characteristics Frequency (%)

Age Employment<25 years 59 (16) Full-time 253 (67)25–34 151 (40) Part-time 53 (14)35–44 103 (27) Student 46 (12)45–54 48 (13) Unemployed 25 (7)>55 years 16 (4)

GenderMale 185 (49)

Years of NZ banking experience Female 188 (50)Other 4 (1)

1–10 years 322 (86)11–20 years 47 (13) Ethnicity21–30 years 5 (0.5) Asian 355 (96)>30 years 3 (0.5) Eastern European 4 (1)

Others 18 (5)

Table 1.Participants’ profileoverview

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factors, thus indicating discriminant validity was established (Bagozzi and Yi, 1988). TheHTMT ratio of correlations explaining all values of HTM were lower than the recommended

Construct LoadingsCronbach’s

alpha CR AVE

Interaction intensityMy banker frequently calls me 0.769 0.802 0.884 0.718My banker takes a lot of time to learn my needs 0.880My banker spends considerable time getting to know me 0.887

Client knowledgeI know a lot about banking products 0.902 0.865 0.896 0.686I don’t feel very knowledgeable about banking 0.910Among my friends, I am considered an expert on bankingmatters

0.716

Compared to most other people, I know less about banking 0.768

Similarity appearanceI feel my banker has a similar appearance to mine 0.717 0.879 0.912 0.675I feel my banker has a similar fashion style to mine 0.825I feel my banker has similar mannerisms to mine 0.860I feel my banker has a similar speech style to mine 0.874I feel my banker has a similar personality to mine 0.824

Similarity lifestyleI feel my banker has a similar family situation to mine 0.792 0.872 0.911 0.719I feel my banker has similar interest/hobbies to mine 0.879I feel my banker has similar political views to mine 0.865I feel my banker has similar values to mine 0.854

Similarity statusI feel my banker has a similar education to mine 0.864 0.823 0.893 0.736I feel my banker has a similar income level to mine 0.862I feel my banker has a similar social class to mine 0.847

Satisfaction with bankerThe amount of contact that I have had with my banker wasadequate

0.898 0.938 0.956 0.844

I am satisfied with the level of service my banker has provided 0.935In general, I am pretty satisfied with my dealings with mybanker

0.946

I am satisfied with the staff who deliver the service in my bank 0.896

Repurchase intentionsI expect my relationship with my banker to continue for a longtime

0.812 0.867 0.898 0.558

The renewal of the relationship with my banker is virtuallyautomatic

0.698

I will most probably switch to an alternative bank in theforeseeable future

0.674

I definitely intend tomaintainmy current relationshipwith thisbank

0.779

I amwilling to putmore effort and investment into building ourbusiness with the help of my banker’s products and services

0.739

If my banker requested it, I would be willing to make furtherinvestment in supporting my banker

0.682

I will purchase from this banker again 0.831Table 2.

Measurement model

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level of 0.90, thus confirming acceptable discriminant validity for all constructs (Hairet al., 2016).

4.2 Structural modelTo test the structural model and hypothesis, Hair et al. (2019) require that the path coefficient(β), coefficient of determination (R2) and effect size (f2) are reported. A bootstrappingtechnique was applied with a re-sampling of 5,000 and to examine the hypothesis testing,path estimates and t-statistics were calculated. Table 4 and Figure 1 show the structuralmodel hypothesis testing. The results showed that there were no significant relationshipsbetween similarity status and interaction intensity, satisfactionwith a banker and repurchaseintentions (β 5 0.011, p5 0.896; β5 0.039, p5 0.637; β5 0.104, p5 0.120). Thus, H5a, H5band H5c were not supported. Lifestyle similarity had a significant relationship withinteraction intensity and no significant relationships with satisfaction with a banker andrepurchase intentions (β5 0.258, p5 0.001; β5 0.055, p5 0.511; β5 0.047, p5 0.476). Thus,H4a was supported and H4b and H4c were not supported. Meanwhile, similarity inappearance did not have a significant relationship with interaction intensity or repurchaseintentions, but it did have significant relationship with satisfaction with a banker (β5 0.010,p5 0.902; β5 0.068, p5 0.309; β5 0.165, p5 0.012). Thus, H3a and H3c were not supportedand H3b was supported. In addition, interaction intensity had a significant relationship withsatisfaction with a banker and repurchase intentions (β 5 0.341, p 5 0.001; β 5 0.122,p 5 0.002), and thus H2a and H2b were supported. Satisfaction with a banker had asignificant relationship with repurchase intentions (β 5 0.709, p 5 0.001), and thus H1 wassupported.

The corrected R-squared values reported in Table 4 exhibit the explanatory power of thepredictor variable(s) on the respective constructs. Interaction intensity explained 6.7% ofsimilarity appearance, status and lifestyle (R25 0.067), satisfaction with a banker explained18.9% of interaction intensity (R2 5 0.189) and repurchase intentions explained 55.9% ofsatisfaction with a banker (R2 5 0.559). The effect size (f2) value showed that similarityappearance, status and lifestyle had no effect on interaction intensity, satisfaction with abanker or repurchase intentions (0.002; 0.001; 0.011). Interestingly, interaction intensity had a

Construct 1 2 3 4 5 6 7

Fornell and Larcker1. Client knowledge 0.8282. interaction intensity 0.154 0.8473. Repurchase intention 0.150 0.389 0.7474. Satisfaction with banker 0.168 0.381 0.732 0.9195. Similarity appearance 0.081 0.164 0.235 0.196 0.8226. Similarity lifestyle 0.021 0.259 0.196 0.172 0.653 0.8487. Similarity status 0.050 0.195 0.223 0.163 0.557 0.735 0.858

HTMT1. Client knowledge2. Interaction intensity 0.1863. Repurchase intention 0.162 0.4594. Satisfaction with banker 0.152 0.437 0.7975. Similarity appearance 0.091 0.191 0.271 0.2146. Similarity lifestyle 0.057 0.300 0.220 0.183 0.7497. Similarity status 0.086 0.239 0.267 0.180 0.634 0.856

Note(s): Below the diagonal: correlation estimated between the factors; Diagonal: square root of AVETable 3.Discriminant validity

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small effect on satisfaction with a banker (0.019) and has a high effect on repurchaseintentions (1.067). Satisfaction with a banker had a high effect on repurchaseintentions (1.067).

4.3 Moderating analysisIn this study, the hypothesis was established that client knowledge has a moderating effecton the relationship between interaction intensity and customer satisfaction with a banker.The PLS product-indicator method was performed to test the moderating effects, assuggested by Henseler and Fassott (2010). Table 4 shows that client knowledge moderatedthe relationship between interaction intensity and satisfaction with a banker. Thus, H6 wassupported.

5. DiscussionThe findings indicated that three types of similarity affected interaction intensity differently.Lifestyle similarity was found to positively influence interaction intensity. The similarityconstructs of appearance and status showed an insignificant relationship with interactionintensity. The lifestyle similarity result showed that the more lifestyle characteristics abanker shares with a customer, the more intensely the customer will interact with the banker.

Hypothesis Beta

t-

statistics

p-

values 2.50% 97.50% R2 f2 Results

H1. Satisfaction with

banker → repurchase intention

0.709 23.33 0.001 0.642 0.763 0.549 1.067 Supported

H2a. Interaction

intensity → satisfaction with

banker

0.341 7.253 0.001 0.248 0.433 0.189 0.019 Supported

H2b. Interaction

intensity → repurchase

intention

0.122 3.104 0.002 0.044 0.194 0.549 1.067 Supported

H3a. Appearance

similarity→ interaction intensity

0.010 0.123 0.902 0.164 0.140 0.067 0.000 Not

supported

H3b. Appearance

similarity → satisfaction with

banker

0.165 2.506 0.012 0.025 0.285 0.189 0.018 Supported

H3c. Appearance

similarity→ repurchase intention

0.068 1.017 0.309 0.061 0.201 0.549 0.006 Not

supported

H4a. Lifestyle similarity→ interaction

intensity

0.258 3.123 0.002 0.089 0.416 0.067 0.027 Supported

H4b. Lifestyle

similarity → satisfaction with

banker

0.055 0.657 0.511 0.217 0.110 0.189 0.002 Not

supported

H4c. Lifestyle similarity→ repurchase

intention

0.047 0.712 0.476 0.177 0.079 0.549 0.002 Not

supported

H5a. Status similarity → interaction

intensity

0.011 0.130 0.896 0.148 0.168 0.067 0.000 Not

supported

H5b. Status similarity → satisfaction

with banker

0.039 0.472 0.637 0.133 0.196 0.189 0.001 Not

supported

H5c. Status similarity → repurchase

intention

0.104 1.554 0.120 0.033 0.231 0.549 0.011 Not

supported

H6. Interaction intensity 3 client

knowledge → satisfaction with

banker

0.284 4.086 0.037 0.007 0.164 Supported

Note(s): Significant at 5% levelTable 4.

Structural model

Repurchaseintention

A higher degree of lifestyle similarity is likely to provide psychological closeness; that is, abanker with a similar lifestyle to a customer is likely to share similar fundamental values(Crosby et al., 1990). In essence, personal values are enduring beliefs motivate a banker to beprofessional (Braithwaite and Blamey, 1998). Thus, a high degree of similarity is likely toshow a banker’s behavior stability, and therefore generate a higher sense of security in acustomer who then seeks frequent interactions with the banker. These findings supportZajadacz and Sniadek’s (2013) study in which the authors found that lifestyle similarityimproves communication times between deaf and hearing people. Although, appearancesimilarity and interaction intensity were not supported, appearance similarity had asignificant relationship with customer satisfaction with a banker. One explanation could bethat a customer regards appearance similarity as a tool to initiate the first interaction.However, when the interaction is established, a customer is more likely to focus on a banker’scredibility and orientation. These findings complement the study of Rajaobelina andBergeron (2009), which found that appearance similarity improves relationship quality.

The findings strongly suggest that appearance similarity and interaction intensity areable to enhance customer satisfaction with a banker. Consistent interactions can result in acustomer becoming more intimate with a banker, and therefore more willing to share whatthey have inmind. In addition, a banker may also be able to identify a customer’s needs, tailortheir approach and offer suitable products and services to fulfill the customer’s requirements.Previous studies have found that appearance similarity and interaction intensity improvecustomer satisfaction with a salesperson and promote a customer’s relationship with thesalesperson (Amodio and Showers, 2005; Dagger et al., 2009; Nasri, 2015; Ngo et al., 2016). As aresult, when a customer perceives that a banker shares appearance similarity, the customertends to assimilate and get to know a banker personally. For example, a customer may askwhere a banker has their hair cut or buys their clothes and vice versa. This example showsthat appearance similarity promotes relationships beyond the work setting. Consequently, acustomer who perceives similarity may view a banker as willing to provide service that goesthe extra mile and accordingly feels satisfied.

Although it was shown that appearance, status and lifestyle similarity did not influencerepurchase intentions, customer satisfactionwith a banker had a significant relationshipwithrepurchase intentions. This means that a banker may not be comfortable sharing their socialand economic status with a customer, leading to a speculative and subjective customer

Interac�on intensitySa�sfac�on with a

bankerRepurchase inten�on

LifestyleSimilarity

Client knowledge

H2a H1

H2b

H3a

H6

AppearanceSimilarity

StatusSimilarity

H3bH3c H4a H4b H4c

H5cH5bH5a

Figure 1.Research model

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evaluation of the banker’s status. In addition, a customer may have a task-oriented mindsetand does not view different social status and social class characteristics as affecting abanker’s performance. Therefore, it is important for a banker to consistently satisfy theircustomer. Suitable products and proper services are helpful in generating trust,communication quality, positive emotion and satisfaction with a banker. These findingslend support to the studies of Kitapci et al. (2014) and Preis (2003) who also found thatsatisfaction leads to a customer’s higher intention to repurchase. Interestingly, the effect ofinteraction intensity on customer satisfaction with a banker and repurchase intentions werefound to be positive. This indicates that banker–customer relationships are well established.Accordingly, interaction intensity is more a courtesy service to maintain customersatisfaction rather than an opportunity to sell banking products. Thus, it is important fora banker to stick to their objectives when interacting with a customer.

The moderating effect of client knowledge and interaction intensity and customersatisfactionwith a bankerwas found to be significant. Client knowledge influences the degreeof interaction intensity and satisfaction with a banker. When a customer has low or moderatebanking knowledge, they tend to have more interactions with a banker to minimize theirfinancial disadvantages. For example, a customermay not understand how to calculate creditcard interest, and therefore in order to manage their credit card usage, a customer mayconsult with a banker. Therefore, the more interactions a customer has with a banker, themore confident and satisfied the customer feels with the banker. Thus, these results suggestthat customer satisfaction with a banker serves as an important factor in improving acustomer’s repurchase intention.

5.1 Theoretical and managerial implicationsThe results of this study offer some important theoretical and practical implications.Academically, the findings extend Gaur et al.’s (2012) similarity model by incorporatinginteraction intensity, client knowledge and repurchase intention. This new model providesnew insight into the concept of similarity, and the results indicate that lifestyle similarity isthe most important type of similarity as it promotes more interactions and improvessatisfaction. In addition, these results show that psychological similarity is more powerfulthan physical and social/economic similarities. Thus, these results extend the theoreticalunderstanding of similarity. Moreover, the findings also contribute positively to businesspractitioners. These findings suggest that a banker should be comfortable in showing theirsimilarities to a customer and wisely control and utilize these similarities. In particular, abanker is recommended to highlight their psychological similarity more often than theirappearance and status similarities.

6. Limitation and future research directionsThis studywas conducted in theAuckland region only; therefore, it may only be applicable tothis area and cannot be generalized to other areas or countries. Furthermore, these findingswere achieved by focusing solely on the banking industry; thus, the results may only beapplicable to this industry. In addition, the focus of this research was limited to customers’perception of their similarity to bankers. Future research may consider investigating abanker’s perception of their similarity to a customer. Finally, this model only incorporates afew constructs and may oversimplify the concept of similarity. Future research couldintegrate other constructs such as reputation as a potential moderator.

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Appendix 1

Corresponding authorMuslim Amin can be contacted at: tengkumuslim@yahoo.com

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Constructs Sources

Interaction intensity Doney and Cannon (1997)My banker frequently calls meMy banker takes a lot of time to learn my needsMy banker spends considerable time getting to know meClient knowledge Flynn andGoldsmith (1999)I know a lot about banking productsI don’t feel very knowledgeable about bankingAmong my friends, I am considered an expert on banking mattersCompared to most other people, I know less about bankingSimilarity appearance Crosby et al. (1990)I feel my banker has a similar appearance to mineI feel my banker has a similar fashion style to mineI feel my banker has similar mannerisms to mineI feel my banker has a similar speech style to mineI feel my banker has a similar personality to mineSimilarity lifestyle Crosby et al. (1990)I feel my banker has a similar family situation to mineI feel my banker has similar interest/hobbies to mineI feel my banker has similar political views to mineI feel my banker has similar values to mineSimilarity status Crosby et al. (1990)I feel my banker has a similar education to mineI feel my banker has a similar income level to mineI feel my banker has a similar social class to mineSatisfaction with banker Ramsey and Sohi (1997)The amount of contact that I have had with my banker was adequateI am satisfied with the level of service my banker has providedIn general, I am pretty satisfied with my dealings with my bankerI am satisfied with the staff who deliver the service in my bankRepurchase intentions Kumar et al. (1995)I expect my relationship with my banker to continue for a long timeThe renewal of the relationship with my banker is virtually automaticI will most probably switch to an alternative bank in the foreseeable futureI definitely intend to maintain my current relationship with this bankI am willing to put more effort and investment into building our business withthe help of my banker’s products and servicesIf my banker requested it, I would be willing to make further investment insupporting my bankerI will purchase from this banker again

Repurchaseintention