The branch is strong when the tree is healthy: symbolic reassurance in retail banking in a post-trust economy
Lavy Khoushinsky, Anna Margulis, Harold Boeck, Michel LarochePurpose
This study clarifies the strategic role of physical bank branches in a post-trust economy by theorizing and testing Symbolic Reassurance and identifying which customer experience dimensions translate reassurance signals into loyalty and word-of-mouth.
Design/methodology/approach
Using a three-study mixed-method design, Study 1 focus groups (n = 20) identify symbolic reassurance signals and their customer experience mappings; Study 2 scenario-based experiments (n = 298) test how these customer experience dimensions translate into loyalty and word-of-mouth across conventional versus technology-enhanced branch scenarios; and Study 3 uses topic modeling and machine learning on 363,184 Google reviews to assess whether these same dimensions emerge in naturally occurring consumer discourse.
Findings
Branches function as costly, visible and enduring signals that consumers interpret through customer experience dimensions. Across the studies, SURROUND, SOCIALIZE and SITUATE emerge as the most consequential dimensions. Innovation-heavy experiences add little beyond a functional floor, while THINK and FEEL exhibit weak relationships with the examined outcomes. In consumer reviews, SOCIALIZE is the strongest predictor of ratings. A cross-study synthesis maps ten symbolic signals to their most relevant customer experience dimensions.
Practical implications
Banks should prioritize staff competence through SOCIALIZE, professional atmospherics through SURROUND and local embeddedness through SITUATE. They should also evaluate branches beyond transactional metrics and avoid lifestyle-oriented innovations that dilute reassurance signals.
Originality/value
This study introduces Symbolic Reassurance and positions customer experience as a receiver-side interpretive mechanism within signaling theory. It triangulates qualitative, experimental and large-scale behavioral data and reframes physical branches as reassurance infrastructure rather than primarily as service points.