Economic and non-economic satisfaction as outcomes of micro-enterprises' perceived value from banking relationships

Abstract

PURPOSE : The purpose of this paper is to position economic and non-economic satisfaction as outcomes of micro-enterprises’ perception of value, and to determine the antecedents of perceived value within the business banking industry. METHODOLOGY/APPROACH : The study is based on a self-administered and internet-based questionnaire conducted in the South African business banking industry. The sample consists of 381 micro-enterprises that employ one or two staff members. FINDINGS : The results reveal that economic satisfaction and non-economic satisfaction are influenced by customers’ perceived value, and that price fairness influences perceived value through the mediating effects of perceived price and service quality. Significant relationships were also found between perceived price and economic satisfaction, and between economic satisfaction and non-economic satisfaction. RESEARCH IMPLICATIONS : Drawing on social exchange theory, this research adds to the existing literature by exploring price fairness in business customers’ perception of value, and their subsequent satisfaction judgments – specifically economic and non-economic satisfaction. MANAGERIAL IMPLICATIONS : The study offers banking executives insight into factors that influence micro-enterprises’ perception of value, and the consequences of higher perceived value in terms of their economic and non-economic satisfaction levels. ORIGINALITY/VALUE/CONTRIBUTIONS : Micro-enterprises are an under-researched target group in the areas of price, quality, value, and satisfaction within the business banking industry. The study further contributes to theory by being among the first to posit economic and non-economic satisfaction as dual outcomes of perceived value.