Customer satisfaction with socially responsible investing initiatives: The influence of perceived financial and non-financial quality

Research output: Contribution to journalArticle

Abstract

During the last decade, socially responsible investment (SRI) initiatives have grown to become a mainstream financial service in many countries. However, to date, only a few studies focus on understanding the final investor of such initiatives. This article focuses on one particularly overlooked aspect of SRI behavior; that of customer post-purchase satisfaction. A theoretical model of satisfaction with SRI-profiled mutual funds is developed and tested. The results indicate that perceived financial performance of the SRI-profiled mutual fund is the most important predictor of customer satisfaction. However, perceived environmental, social and governance (ESG) performance also had a positive impact on satisfaction for the SRI mutual fund. On the basis of these results, it is argued that although ESG quality is important to customers, marketers of SRI initiatives should primarily focus on the conventional quality attributes such as financial performance, as a good ESG record alone is unlikely to generate customer satisfaction.

Details

Authors
External organisations
  • University of Gothenburg
Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Business Administration

Keywords

  • customer satisfaction, perceived quality, socially responsible investment, mutual funds, financial performance
Original languageEnglish
Pages (from-to)265-276
Number of pages12
JournalJournal of Financial Services Marketing
Volume19
Issue number4
Publication statusPublished - 2014 Dec
Publication categoryResearch
Peer-reviewedYes
Externally publishedYes