Transitions of value creation from traditional media to social media architecture

Abstract

This study aims to assess the relationship between service value (SV), interactive value (IV), customer experience (CX), customer engagement (CE), and customer loyalty (CL) in the context of social media (SM) for domestic retail bank customers in Malaysia. The value-attitude-behavior model was used as the theoretical framework. To test this hypothesis, a partial least square structural equation model was used to analyze data from 181 active customers of domestic retail banks’ SM platforms. The results of the analysis indicate that CX and CE have a direct effect on CL. The study also found that CX and CE mediate the relationship between IV and CL, as well as SV and CL. The results highlight the importance of using SM platforms for value creation beyond just social interaction and the significance of IV, CX, and CE in digital platforms. Results also suggest that additional resources should be allocated to manage activities on these platforms to ensure that bank personnel can effectively design their SM strategies.