The Effect of Empathy on Customer SatisfactionMuhamad

Aziz Rabiautsani

Abstract：The purpose of this study is to examine the effect of empathy on customer satisfaction. The main objective is to discuss the impact of empathy on customer satisfaction in Chinese banking industry. The data were collected using self-administered questionnaire. Empathy was measured using empathy scale including 3 aspects and total 12 items. Customer satisfaction is including 5 items， representing overall satisfaction measure. Questionnaires were distributed among 230 customers （201 participants completely filled）. Multiple regression analysis showed that empathy positively significant on customer satisfaction. The present study contributes to the existing literature on empathy and customer satisfaction relationship in banking industry.

Keywords：Customer satisfaction; Empathy; Banking industry

1 Introduction

When conducting transactions at bank， it certainly involves employees and customers. In the competitive banking industry， customer satisfaction is considered a factor that can determine success. When customers are dissatisfied with a banks service/product， they will react negatively and switch to another bank （Amin et al.， 2011）. According to Khristianto et al. （2012）customer satisfaction is the result of a comparison between consumption expectations and satisfaction experiences obtained by customers in seeing the final results whether customer expectations are met or even exceeded. In the banking industry， employee empathy plays an important role in increasing banking customer satisfaction （Krishnamurthy et al.， 2010）. A high level of empathy and a positive focus on customers is a prerequisite for a successful service （Zeithaml， Berry & Parasuraman， 1996）. In interactions between employees and customers， employee empathy is very important to identify and meet customer needs （Giacobbe et al.， 2006）. Employees who have empathy for customers can adjust their behavior towards certain customers， provide personal assistance that is appropriate for each customer （Wieseke et al.， 2012）and then result in higher customer satisfaction. This study examines issues aimed at helping the banking industry in China to understanding the effect of employee empathy on customer satisfaction.

2 Literature Review

2.1 Customer Satisfaction

Westbrook and Oliver， （1991）indicate that satisfaction is when customer cognitively compare actual performance with expected performance. It is difficult to determine the level of customer satisfaction because it can be influenced by various internal and external factors （Abdullah and Rozario， 2009）. Satisfaction is someones expression based on perceptions about the use of products or services related to happiness or discomfort associated with their expectations （Schiffman， 2014）.

2.2 Empathy

Wieseke （2012）describes empathy as a personal characteristic or as an ability， which can be cognitive， emotional or both. McBanes （1995）& Wiesekes （2012）describe three dimensions of empathy， which include perspective taking， empathic concern， and emotional contagion. Perspective taking or “adopting another persons point of view” and empathic concern or “feeling of caring for the welfare of others” are taken from Daviss seminal paper （1980）， while emotional contagion or “emotionally induced transfer” of emotions， such as smile transmission or the spread of anger which is irrational through the masses， taken from the work of Dillard & Hunter （1986）.

3 Empirical Study

3.1 Research Questions

An empirical study was conducted to answer this research question：

RQ1：Does Empathy have a significant effect on customer satisfaction in the Chinese banking industry？

RQ2：Which empathy dimensions contribute most to customer satisfaction in the Chinese banking industry？

3.2 Sample and Data Collection

Data were gathered in 2019 from bank customers in China. Self-administered questionnaires were distributed to customers using the bank-intercept method. Researcher at bank entrances asked potential respondents to complete a survey. The objective was 230 completed questionnaires and total 201 completed questionnaires were collected.

The majority of respondents were male （54.22 percent）and 36-40 years old participants are dominated this study （23.39 percent）. In terms of education， participants who had a postgraduate degree are dominated this study （38.81 percent）.

3.3 Measures

This study used empathy scale and customer satisfaction scale. This study used customer satisfaction scale developed by Anand & Selvaraj （2012）and consists of 5 items. Empathy scale used a scale developed by Jan， Anja & Florian （2012）by measuring three dimensions， perspective taking， empathic concern， and emotional contagion， and consist of 12 items. Respondents were asked to respond to each of the 17 items on a four-point Likert-type scale ranging from “strongly disagree” （1）to “strongly agree” （4）.

The scales validity was conducted validity test using CFA （Confirmatory Factor Analysis）by LISREL 8.7 and reliability was calculated on SPSS using Cronbachs alpha. The coefficient alpha is the most popular measure of reliability for a multi-item scale （Sekaran， 1992）. The cronbachs alpha criteria used a limit of ≥0.6 because according to Sekaran （1992）， reliability of less than 0.6 is not good， while 0.7 is acceptable and above 0.8 is good.

Table 3.1 Scale Validity and Reliability

Variable No. of Items X2 Df Fit Measures Cronbach α p-value

RMSEA GFI AGFI CFI RMR

Customer Satisfaction 5 5.69 4 .046 .99 .96 1.00 .014 .83 .223

Empathy 67.13 51 .040 .95 .92 .99 .013 .064

Perspective Taking 3 .67

Empathic Concern 4 .75

Emotional Contagion 5 .79

Table 3.1 above is the result of the validity and reliability test of the customer bank in China. The results show that all items have a Cronbach alpha value >.60. All variables shows that p-value >.05 and RMSEA <.05.

4 Results

Multiple regression analysis is performed to analyze the effect of empathy on customer satisfaction in China. From the table 4.1 shown that the R square value is 0.510. That means that the proportion of variance from customer satisfaction explained by empathy is 51% and the remaining 49% is influenced by other variables outside this study. Based on the F-value， there is a significant effect of empathy on customer satisfaction with F-value 68.371. The table shows that perspective taking， empathic concern， and emotional contagion coefficients have significant effect on customer satisfaction.

Table 4.1 Multiple Regression Analysis Result

Unstandardized Coefficients Standardized Coefficients T Sig.

B St. Error Beta

（Constant） 9.890 2.856 3.463 .001

Perspective Taking .188 .066 .204 2.852 .005*

Empathic Concern .246 .068 .267 3.590 .000**

Emotional Contagion .368 .068 .352 5.396 .000**

R2 .510

F-value 68.371

Dependent Variable：Customer Satisfaction N=201**p<.01 *p<.05

5 Discussions， Conclusions， Limitations

5.1 Discussions

The analysis reported here advances theoretical and empirical research on the effect of empathy on customer satisfaction in Chinese banking industry. The findings indicated that empathy has a significant effect on customer satisfaction. The finding is consistent with previous research regarding the effect of empathy on customer satisfaction （Wieseke et al.， 2012）. Empathy shown by bank employees to customers could drive customer satisfaction （Gorry & Westbrook， 2011; Lee et al.， 2011）. Perspective taking， empathic concern， and emotional contagion have significant effect on customer satisfaction in China. This finding is consisted with previous study （Wieseke et al.， 2012）. Employee is demonstrated perspective taking through an understanding of the needs and complaints of customers in a service. Employee is care about problems or complaints obtained by bank customers and lead to helping behavior then customers become satisfied. Employee has the ability to share emotions with customers when interacting on a service. Employees become more emotional through gestures or facial expressions that are shown by customers then customer become satisfied.

5.2 Conclusions

This study has a wider coverage of the key dimensions of empathy and their impact on satisfaction in Chinese banking industry. This study was to examine the effect of empathy on customer satisfaction. Customers become satisfied when employees share emotions facing customers who are expressing what they want and need. They are also more satisfied because employees show a sense of understanding and care for the needs or problems of customers and lead to helpful behavior. Overall， the results provide a basic understanding of the role of empathy in determining customer satisfaction in Chinese banking industry.

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作者簡介：Muhamad Aziz Rabiautsani （1990—），男，印度尼西亚雅加达市人，应用心理学专业2017级硕士研究生，研究方向：应用心理学。

（作者单位：浙江师范大学教育学院）