Purpose – While technology continues to make a dramatic and profound impact in service industriesand radically shapes how services are delivered relatively little is understood about the impactof advancing technology on customers; their expectations, perceptions and behaviours. As bankingenters an increasingly digitised world this study reports on the views of 667 e-banking customers withrespect to the perceived potential of social media to add value in retail banking relationships.The purpose of this paper is to propose that in order to realise this opportunity requires the case bankto embrace the second-order level changes required within socio-technical theory (STT) in order thatsuch value can be co-created between the relational parties.Design/methodology/approach – Using the lens of STT to interpret the findings drawn from thecase bank’s e-banking customer base (n¼5,500), it is argued that social media has the potentialto fundamentally change customer-bank relationships and to add value to the way in which the partiesinteract with each other into the future. A survey methodology was adopted.Findings – The findings presented indicate a wide spectrum of customers actively using transactionale-banking solutions in the case bank. The findings showed that those in the 15-30 age group saw“real-time/up-to-date information” as the main gain of their bank being on Facebook while their oldercolleagues in the 31-60 age group had a desire for different returns (“competitions, events”). Thatthe analysis showed that age was the only significant determinant of Facebook appropriateness for thecase bank, and in the context of the age-related preferences outlined above, the issue of segmentation isstrongly highlighted.Originality/value – This study contributes to the academic domain through a rare application ofSTT in a service context, offers implications for practice and highlights important areas for futureresearch, inter alia; the role for new media in banking relationships, the impacts of new media on bankstaff roles, where value now accrues in bank-customer communication, where social media fits inthe promotional mix and relational strategies of banks and what are the issues emerging at thesocial-technical interface between both customers and staff and new technology and media.
Bibliographical noteReference text: Alter, D. (2014), “Facebook is looking to move into mobile payment”, Money Morning, 14 April,
available at: www.moneymorning.com (accessed 14 April 2014).
Ballantyne, D. (1998), “Relationship marketing management: the internal and external market
dimensions in marketing planning”, in Turnbull, P. and Naude, P. (Eds), Network Dynamics
in International Marketing, Chapter 14, Elsevier, Oxford, pp. 272-288.
Berger, S.C. (2009), “Self-service technology for sales purposes in branch banking: the impact of
personality and relationship on customer adoption”, International Journal of Bank
Marketing, Vol. 27 No. 1, pp. 288-505.
Bitner, M.J., Brown, S.W. and Meuter, M.L. (2000), “Technology infusion in service encounters”,
Journal of the Academy of Marketing Science, Vol. 28 No. 1, pp. 138-149.
Blount, Y. (2010), “Employee management and service provision: a conceptual framework”,
Information Technology and People, Vol. 24 No. 2, pp. 134-157.
Bons, R.W., Alt, H., Rainer, A., Geun, H. and Weber, B. (2012), “Banking in the internet and mobile
era”, Electronic Markets, Vol. 22 No. 4, pp. 197-202.
Bushner, B. (2014), “How facebook changes are impacting businesses”, Albany Business Review,
14 April, available at: www.bizjournals.com/albany/morning_call/2014/04/how-facebookchanges-
are-impacting-businesses.html (accessed 14 April 2014).
Cherns, A. (1987), “Principles of socio-technical design revisited”, Human Relations, Vol. 40 No. 3,
Cho, Y.K. and Menor, L.J. (2009), “Toward a provider-based view on the design and delivery of
quality e-service encounters”, Journal of Service Research, Vol. 13 No. 1, pp. 83-95.
Dabholkar, P.A. and Bagozzi, R.P. (2002), “An attitudinal model of technology-based self-service:
moderating effects of consumer traits and situational factors”, Journal of the Academy of
Marketing Science, Vol. 30 No. 3, pp. 184-201.
Davis, P. (2013), “Balancing technology and service is banking’s greatest challenge”, American
Banker, Vol. 178 No. 35, p. 11.
Delafrooz, N., Taleghani, M. and Taghineghad, M. (2013), “The impact of service innovation on
consumer satisfaction”, International Journal of Marketing and Technology, Vol. 3 No. 5,
Devlin, J. and Yeung, M. (2003), “Insights into customer motivations for switching to internet
banking”, International Review of Retail, Distribution and Consumer Research, Vol. 13
No. 4, pp. 375-392.
Durkin, M. (2013), “Tweet me cruel: perspectives on battling digital marketing myopia”, The
Marketing Review, Vol. 13 No. 1, pp. 51-63.
Durkin, M., McGowan, P. and Babb, C. (2013), “The small business – bank relationship: a
foundation for effective financing”, Journal of Small Business and Enterprise Development,
Vol. 20 No. 2, pp. 420-433.
Durkin, M., McGowan, P. and Murray, L. (2014), “Social media in small business-bank
relationships”, International Journal of Entrepreneurship and Innovation, Vol. 28 No. 6,
Durkin, M., Howcroft, B., O’Donnell, A. and McCartan-Quinn, D. (2003), “Retail bank customer
preferences: personal and remote interactions”, International Journal of Retail and
Distribution Management, Vol. 31 No. 4, pp. 177-189.
Durkin, M., O’Donnell, A., Mulholland, G. and Crowe, J. (2007), “On e-banking adoption: from
banker perception to customer reality”, Journal of Strategic Marketing, Vol. 15 No. 2,
Downloaded by 126.96.36.199 At 07:43 17 May 2016 (PT)
EFMA (2013), “The Global Retail Banking Digital Marketing Report 2013”, available at:
www.efma.com (accessed 10 January 2014).
Emery, F.E. and Trist, E.L. (1960), “Socio technical systems”, in Churchman, C.W. and
Verhulst, M. (Eds), Management Sciences Models and Techniques, Vol. 2, London.
Farshid, M. (2011), “The social media faces of global financial services brands”, Journal of
Financial Services Marketing, Vol. 16 Nos 3-4, pp. 220-229.
Garrety, K. and Badham, R. (2000), “The politics of socio-technical intervention: an interactionist
view”, Technology Analysis and Strategic Management, Vol. 12 No. 1, pp. 103-118.
Gwinner, K.P., Grender, D.D. and Bitner, M.J. (1998), “Relational benefits in service industries: the
customer’s perspective”, Journal of the Academy of Marketing Science, Vol. 26 No. 2,
Honebein, P.C. and Cammarano, R.F. (2006), “Customers at work”, Marketing Management,
Vol. 15 No. 8, pp. 26-31.
Irish Times (2014), “Facebook seeks Irish approval for new e-money service”, 14 April, available
at: www.irishtimes.com (accessed 14 April 2014).
Kaplan, A.M. and Haenlein, M. (2010), “Users of the world unite! the challenges and opportunities
of social media”, Business Horizons, Vol. 53, pp. 59-68.
Kyung-hun, Ha., Canedoli, A., Baur, A.W. and Bick, M. (2012), “Mobile banking – insights on its –
increasing relevance and most common drivers of adoption”, Electronic Markets, Vol. 22
No. 4, pp. 217-227.
Lee, J. and Allaway, A. (2002), “Effects of personal control on adoption of selfservice technology
innovations”, Journal of Services Marketing, Vol. 16 No. 6, pp. 553-572.
Lucas, H.C. (1975), Why Information Systems Fail, Columbia University Press, New York, NY.
McAfee, A. and Brynjolfsson, E. (2008), “Investing in the IT that makes a competitive difference”,
Harvard Business Review, Vol. 86, July-August, pp. 99-107.
Marr, N.E. and Prendergast, G.P. (1991), “Strategies for retailing technologies at maturity: a retail
baking case study”, Journal of International Consumer Marketing, Vol. 3 No. 3, pp. 99-125.
Marr, N.E. and Prendergast, G.P. (1993), “Consumer adoption of self-service technologies in retail
banking”, International Journal of Bank Marketing, Vol. 11 No. 1, pp. 3-10.
Mazur, M. (2011), “Banks take to social media”, ABA Banking Journal, January, p. 46.
Montano, B.R. and Dillon, R. (2005), “The Impact of technology on relationships within
organisations”, Information Technology and Management, Vol. 6 Nos 2/3, pp. 227-251.
Moutinho, L. and Meidan, A. (1989), “‘Bank customers’ perceptions, innovations and new
technology”, International Journal of Bank Marketing, Vol. 7 No. 2, pp. 22-27.
Murray, L., Durkin, M., Worthington, S. and Clark, V. (2014), “From discrete to relational
tweeting: on the integration of twitter into relationship banking”, Journal of Financial
Services Marketing, Vol. 19 No. 4, pp. 277-290.
O’Hara, M.T., Watson, R.T. and Bruce, K.C. (1999), “Managing the three levels of change”,
Information Systems Management, Vol. 16 No. 3, pp. 63-71.
Pava, C. (1986), “Redesigning sociotechnical systems design: concepts and methods for the
1990s”, The Journal of Applied Behavioural Science, Vol. 22 No. 3, pp. 201-219.
Persson, A. (2013), “Profitable customer management: reducing costs by influencing customer
behaviour”, European Journal of Marketing, Vol. 47 Nos 5/6, pp. 857-876.
Peters, L.D. and Fletcher, K.P. (2004), “A market-based approach to understanding
communication and team-working – a multi-disciplinary literature review”, Academy of
Marketing Science Review, No. 2, pp. 1-20.
Downloaded by 188.8.131.52 At 07:43 17 May 2016 (PT)
Price Waterhouse Coopers (PWC) (2011), “The new digital tipping point”, available at: www.pwc.
com/digitaltippingpoint (accessed 20 September 2011).
Qatawneh, A.M. (2012), “The effect of electronic commerce on the accounting information system
of Jordanian banks”, International Business Research, Vol. 5 No. 5, pp. 158-163.
Quinn, J.B. (1996), “The productivity paradox is false: information technology improves service
performance”, in Swartz, A.T., Bowen, D.E. and Brown, S.W. (Eds), Advances in Services
Marketing and Management, Vol. 5, JAI Press, Greenwich, CT, pp. 71-84.
Rainer, A. and Puschmann, T. (2012), “The rise of customer-oriented banking – electronic
markets are paving the way for change in the financial services industry”, Electronic
Markets, Vol. 22 No. 4, pp. 203-215.
Ritson, M. (2010), “Social media is for people not brands”, Marketing Week, 2 September, p. 54.
Selnes, F. and Hansen, H. (2001), “The potential hazard of self-service in developing customer
loyalty”, Journal of Service Research, Vol. 4 No. 2, pp. 79-90.
Smith, A.D. (2008), “Internet retail banking”, Information Management and Computer Security,
Vol. 17 No. 2, pp. 127-150.
The Financial Brand (2015), “Top 100 Banks on Facebook”, available at: www.thefinancialbrand.
com (accessed 20 June 2015).
Walker, R.H. and Johnson, L.W. (2004), “Managing technology-enabled service innovations”,
International Journal of Entrepreneurship and Innovation Management, Vol. 4 No. 6,
Walker, R.H. and Johnson, L.W. (2005), “Managing the customer-service provider relationship
with technology-enabled services”, Mt Eliza Business Review, Summer/Autumn, pp. 56-65.
Yousafzai, S. and Yani-de-Soriano, M. (2012), “Understanding customer-specific factors
underpinning internet banking adoption”, International Journal of Bank Marketing,
Vol. 30 No. 1, pp. 60-81.
Zeithaml, V.A. and Gilly, M.C. (1987), “Characteristics affecting the acceptance of retailing
technologies: a comparison of elderly and non-elderly consumers”, Journal of Retail
Banking, Vol. 63 No. 1, pp. 49-68.
- Socio-technical theory