A Socio-Technical Perspective on Social Media Adoption: A case from retail banking

Mark Durkin, Gwyneth Mulholland, Aodheen McCartan

Research output: Contribution to journalArticle

Abstract

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.
LanguageEnglish
Pages944-962
JournalInternational Journal of Bank Marketing
Volume33
Issue number7
DOIs
Publication statusAccepted/In press - 26 Oct 2015

Fingerprint

Social media
Retail banking
Age groups
Socio-technical theory
Facebook
Electronic banking
Banking relationships
New media
Banking
Staff
Communication
Design methodology
Segmentation
Survey methodology
Appropriateness
Bank relationships

Keywords

  • Marketing
  • Banking
  • Socio-technical theory

Cite this

@article{f8ef07dbb4ef49b7a7e5774914ec8020,
title = "A Socio-Technical Perspective on Social Media Adoption: A case from retail banking",
abstract = "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.",
keywords = "Marketing, Banking, Socio-technical theory",
author = "Mark Durkin and Gwyneth Mulholland and Aodheen McCartan",
note = "Reference 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, pp. 153-164. 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, pp. 127-144. 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, pp. 251-264. 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, pp. 237-252. 959 Sociotechnical perspective Downloaded by 82.8.23.77 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, pp. 101-114. 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. 960 IJBM 33,7 Downloaded by 82.8.23.77 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, pp. 561-574. 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.",
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A Socio-Technical Perspective on Social Media Adoption: A case from retail banking. / Durkin, Mark; Mulholland, Gwyneth; McCartan, Aodheen.

Vol. 33, No. 7, 26.10.2015, p. 944-962.

Research output: Contribution to journalArticle

TY - JOUR

T1 - A Socio-Technical Perspective on Social Media Adoption: A case from retail banking

AU - Durkin, Mark

AU - Mulholland, Gwyneth

AU - McCartan, Aodheen

N1 - Reference 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, pp. 153-164. 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, pp. 127-144. 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, pp. 251-264. 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, pp. 237-252. 959 Sociotechnical perspective Downloaded by 82.8.23.77 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, pp. 101-114. 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. 960 IJBM 33,7 Downloaded by 82.8.23.77 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, pp. 561-574. 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.

PY - 2015/10/26

Y1 - 2015/10/26

N2 - 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.

AB - 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.

KW - Marketing

KW - Banking

KW - Socio-technical theory

U2 - 10.1108/IJBM-01-2015-0014

DO - 10.1108/IJBM-01-2015-0014

M3 - Article

VL - 33

SP - 944

EP - 962

IS - 7

ER -