3.3 THEORETICAL FRAMEWORK DEVELOPMENT
3.3.1 EXPECTATION CONFIRMATION THEORY (ECT)
Expectation Confirmation Theory (ECT) has been widely considered in the domain of marketing and service management studies to measure consumer satisfaction and repurchase intention (Oliver
1980; Oliver 1981; Anderson and Sullivan 1993; Oliver 1993; Patterson and Spreng 1997;
Dabholkar et al. 2000). The ECT model has proven the ability to demonstrate consumer repurchase intentions for many products and services. The ECT model is applied in the context of mobile telecommunications (Oghuma et al. 2016); Banking products and services (Hossain & Dwivedi 2015); Health care (Chou et al. 2012); e-learning (Lee 2010); Knowledge management (He & Wei 2009) and others.
According to ECT, that customer undergoes through stages till reaching the repurchase intention (Oliver 1980). First, customers formulate initial perceptions about a specific product and service before.
Purchase is based on prior knowledge or experience (Zeithaml, Parasuraman & Berry 1990). Also, we should consider the influence from multiple channels like mass-media channels, advertising, media reports, interpersonal communication and interaction with different members. Realistic and unrealistic expectations can be generated (Premkumar & Bhattacherjee 2008). Therefore, wrong and misleading information about products and services may interrupt user knowledge. Oliver (1980) elaborated on the power of misleading information that affects consumer expectation of the
Figure 3.1 Expectation Confirmation Theory (Source: Oliver 1980)
product and service performance, which would affect the entire satisfaction intention process.
Then, if the customers perceive the product or service's performance as useful, they accept and purchase it. Third, assessing the perceived product and service based on consumer expectation and determining performance is called confirmation. Positive confirmation will occur if the perceived performance is greater than expected. Alternatively, negative confirmation will occur if the consumer evaluation about the products or services below the explanations. Fourth, based on the level of confirmation, the consumer will determine the level of satisfaction. As claimed by Oliver and DeSarbo (1988) and Erevelles and Leavitt (1992) positive confirmation strengthens consumer attitude to reuse the products leading to satisfaction, while negative confirmation will lead to the weakening of chances of reusing the product. However prior studies also found that dissatisfied customers may still purchase and use the product or service due to convenience, cost, and lack of alternatives, etc. (Brady and Cronin 2001; White and Yu 2005). Moreover, it was noted by Reichheld (1993) that even satisfied consumers may decide not to purchase the product.
The ECT model has four primary constructs: expectation, performance, confirmation, and satisfaction. Eventually, these four constructs impact the user’s continuation of using products and services (Chiu et al. 2005; Venkatesh et al. 2011). Figure 3.1 shows the ECT model. This model has gained acceptance among researchers seeking to explain users’ satisfaction and continuous intention to use (Bhattacherjee 2001; Chiu et al. 2005; Halilovic & Cicic 2013; Venkatesh et al.
2011). Empirical studies using the ECT model proved that customer satisfaction constantly appears as a key element impacting customer repurchase intentional behaviour (He and Wei 2009; Lee 2010, Chou et al. 2012). Several studies have applied the ECT model seeking to understand customer behavioural intentions and level of satisfaction by extending the expectation- confirmation model in the service industry (Halilovic & Cicic 2013; Bhattacherjee 2001; Chiu et
al. 2005; Venkatesh et al. 2011; Oghuma et al. 2016). The choice of the independent variables is made based on the researcher’s motive and research objectives. Table 3.1 shows previous studies using ECT in different contexts.
Halilovic and Cicic (2013) investigated the antecedents of information system user behaviour by extending the expectation-confirmation model by adding additional constructs to support researchers’ arguments. The model was extended by concepts from the theory of planned behaviour by adding perceived control of behaviour through user’s perception and perceived usefulness from the technology acceptance model. Mainly, they tested users’ acceptance of usage budgeting, accounting and financial software. They concluded the study admitting the ability of the theory to explain customer repurchase of products and continuous usage of services.
Furthermore, Oghuma et al. (2016) have explored factors impacting users’ continuous intention to use mobile instant messaging. They extended the ECT model by constructs drawn from the technology acceptance model namely (perceived usability, perceived security, and perceived service quality) and they claimed that the ECT model provides a better understating of a researched issue when it is extended using other theories. Also, Hossain and Dwivedi (2015) investigated factors influencing the adoption of mobile banking by Jordanian bank customers. ECT model was extended by service quality factors as determinants for customer overall satisfaction and behavioural intention to reuse the service. They suggested that exploration of additional potential variables will help to explore customers’ perceptions of banking products and services. Previously, Setó-Pamies (2012) has also recommended for researchers to consider potential constructs like customer loyalty, switching costs and user’s characteristics to describe a phenomenon related to customer behavioural intention.
Table 3.2: Previous studies using ECT in a different context
Author Year Context
Wang et al. 2019 Mobile telecommunication
Poromatikul et al. 2019 Mobile banking
Zhou et al. 2018 e-finance
Oghuma et al. 2016 Mobile telecommunication
Hossain and Dwivedi 2015 Mobile Banking
Halilovic and Cicic 2013 Information system
Chou et al. 2012 Health care
Lee 2010 e-learning
Atchariyachanvanich et al. 2006 e-commerce
Accordingly, ECT is the main theory considered in this proposed study. This study chose the ECT theory because it aims to develop a framework that studies customer satisfaction, loyalty and intention to use Fintech provided in the banking sector. This can best be achieved by extending ECT through constructs drawn from prior studies on Fintech measuring positive and negative factors affecting user’s usage of Fintech – based on the valence framework. Also, Expectancy Confirmation Theory was devoted as the most theoretical framework for the evaluation of customer satisfaction primarily after service experienced (Pakdil & Aydın 2007; Mattila & O'Neill 2003; Halilovic & Cicic 2013; Venkatesh et al. 2011; Oghuma et al. 2016; Hossain and Dwivedi 2015; Zhou et al. 2018).
Hence, the application of this theory into this study is in line with the purpose and motive of the research to study customer experience of using Fintech after using the product and service in the context of the banking sector.