This study investigates the influence of mergers and acquisitions (M&As) in the Indian banking sector, with a specific focus on technological transformations and their effects on customer satisfaction and continuance intention (CI). By applying the expectation-confirmation model (ECM), the study explores how customer expectations influence post-merger experiences, particularly in relation to trust and retention.
A quantitative research design was employed, using structural equation modeling (SEM) to analyze responses from 398 banking customers who experienced service transitions following recent bank mergers. The model examines the relationships among expectation confirmation (EC), perceived usefulness (PU), satisfaction, trust and CI.
The results present that EC significantly affects both PU and customer satisfaction. These in turn influence trust and CI, highlighting the central role of technological adaptation in shaping customer experiences post-merger.
The findings highlight the importance of strategic change management, transparent communication and customer-focused digital integration during mergers. Banking institutions should prioritize the implementation of user-friendly technologies, provide timely and clear information, and guarantee robust support systems to foster trust and reduce service disruptions. These efforts can lead to higher customer retention and persistent brand loyalty in a competitive banking environment.
This study extends the application of the ECM to the context of banking mergers, shifting the focus from financial and operational outcomes to the customer experience. It provides empirical evidence on how technological transitions impact customer satisfaction and retention, offering valuable insights for both academic research and industry practice.
