Design and Validation of the Customer Forgiveness Formation Model in the Banking System

Abstract

Customer forgiveness in the banking system refers to the ability of banks to attract and retain customers by providing services and products tailored to their needs. This concept helps improve customer-bank relationships and can lead to increased customer loyalty and satisfaction. The aim of this study was to design and validate a customer forgiveness formation model in the banking system. The present study employed an interpretivist philosophical approach using a sequential mixed-methods strategy (qualitative/qualitative and quantitative). The first part of the study was conducted using meta-synthesis, and the second part utilized thematic analysis. The research field in the qualitative section included marketing experts and specialists, as well as bank managers and executives, while the quantitative section involved 10 bank managers and 5 faculty members in the field of management. Purposeful sampling was used in the qualitative section for model validation. Data collection tools included semi-structured interviews, and data analysis was performed using thematic analysis, the fuzzy Delphi technique, and the fuzzy best-worst method. The findings indicated that the customer forgiveness formation model is a systemic process composed of systems at two levels: individual (including customers and employees) and organizational (banks). It consists of three main components: drivers and barriers, the forgiveness process, and forgiveness outcomes. The inputs of the model were categorized into three groups: context, structure, and behavior. The outputs included three elements: compulsory forgiveness, sustainable forgiveness, and mass customization of services, along with psychological outcomes, competitive operational management, sustainable loyalty, and competitive financial performance. Overall, this study demonstrates that enhancing customer forgiveness in banks requires a deeper understanding of influential factors and the design of appropriate strategies that can increase customer loyalty and satisfaction.