Explaining the banking customer's hedonic journey in combined channels physical-digital

Extended Abstract
Introduction: The banking industry in metropolitan Tehran, particularly its affluent northern districts, faces a critical challenge: transitioning from purely functional service delivery to creating hedonic customer experiences across hybrid (physical-digital) channels. This study addresses the significant gap in existing literature, which predominantly focuses on operational efficiency and technical integration while neglecting the emotional and sensory dimensions of customer journeys. As digitally literate, high-income customers increasingly demand experiences that blend utility with pleasure, banks must reconcile the paradoxical behaviors observed in Tehran’s unique sociocultural context—where 40.9% of digitally inclined users revert to physical branches for complex transactions due to emotional reassurance. The research investigates four core dimensions: (1) the interplay between physical and digital touchpoints in crafting pleasurable experiences, (2) demographic moderators (age, gender, education), (3) experiential gaps caused by channel inconsistencies, and (4) strategies to harmonize service quality. By focusing on Tehran’s distinct population—77.3% of whom hold university degrees—the study challenges universalist assumptions about banking experiences, revealing how cultural priorities (e.g., Sharia compliance) and security perceptions uniquely shape hedonic responses in Iran’s socioeconomic elite.
Methodology: Employing an exploratory-sequential mixed-methods design, the study first conducted 22 semi-structured interviews with customers from northern Tehran banks, selected via purposive sampling to ensure demographic diversity (age: 20–65 years; gender: 45.5% male, 54.5% female; education: high school to PhD). Interviews reached theoretical saturation at 22 participants, with transcripts analyzed through inductive content analysis using MAXQDA2020. Three coding stages (open, axial, selective) distilled 235 initial codes into 32 conceptual categories and four overarching themes, achieving inter-coder reliability (Cohen’s κ = 0.89). The quantitative phase prioritized factors using the MABAC method, chosen for its robustness in resolving conflicting criteria under uncertainty. An 8×22 decision matrix (criteria × participants) scored factors on a 5-point Likert scale, weighted objectively via Shannon entropy. Kruskal-Wallis tests analyzed demographic variations, revealing significant differences (p < 0.05) in priorities across education levels and occupations. For instance, freelancers (31.8% of participants) valued human interaction 2.1× more than employees, while postgraduate customers emphasized tech adaptability (η² = 0.39). The methodology’s hybrid approach enabled triangulation between qualitative insights (e.g., seniors’ fear of smart devices) and quantitative rankings (e.g., AI-driven need anticipation scoring 0.89).
Discussion and Results: Four factors emerged as critical to hedonic experiences, with distinct demographic variations:
Technological Factors (32% weight): App response speed (87% prioritization by under-35s) and AI personalization drove satisfaction, yet 68.2% of over-40s reported negative digital experiences impacting their preferences.
Human Factors (28% weight): Staff empathy and multichannel continuity reduced service abandonment by 18%, with women valuing personalized greetings 2.3× more than men. Security Factors (24% weight): Biometric authentication paradoxically enhanced pleasure (62% approval), linking security to modernity perceptions.
Psychological Factors (16% weight): Cultural alignment (68% approval for Sharia interfaces) and ownership cues (e.g., customizable dashboards) were vital for educated users. MABAC analysis ranked “AI-driven need anticipation” (0.89) and “branch aesthetics” (0.87) as top priorities. However, 23% loyalty loss occurred due to channel inconsistencies, particularly among retirees (η² = 0.38). Notably, 40.9% of digital-first users paradoxically visited branches for sensitive tasks, citing “emotional reassurance” despite Tehran’s 94% smartphone penetration. Gender disparities surfaced, with 54.5% of women demanding gender-specific rewards versus 45.5% of men prioritizing app usability. Education level sharply influenced preferences: PhD holders emphasized transaction encryption (27.3% of sample), while high school graduates struggled with digital loan applications (22.7%).
Conclusion: This study redefines hybrid banking success through a culture-sensitive framework where security protocols double as pleasure drivers and human interaction remains irreplaceable for complex services. Key recommendations include:
Demographic-tiered interfaces: AR investment simulators for youth, voice-guided ATMs with family-assist modes for seniors. Emotionally intelligent staff training: Neuro-linguistic programming to enhance conflict resolution, particularly for female (54.5%) and elderly (27.3%) customers. Perceptual security engineering: Gamified two-factor authentication animations to transform safety measures into experiential assets. The findings challenge the global prioritization of gamification—only 19% of Tehranis valued it versus 62% emphasizing biometrics’ hedonic appeal. Future research should explore neuroscientific measurements (e.g., galvanic skin response during app interactions) and cross-cultural comparisons with Asian markets like Seoul, where similar income levels yield divergent preferences. For Tehran’s banks, the imperative lies in converting routine transactions into culturally resonant experiences—where every interaction reinforces emotional bonds, turning ATMs into memory-making touchpoints rather than mere cash dispensers.The findings challenge the global prioritization of gamification—only 19% of Tehranis valued it versus 62% emphasizing biometrics’ hedonic appeal. Future research should explore neuroscientific measurements (e.g., galvanic skin response during app interactions) and cross-cultural comparisons with Asian markets like Seoul, where similar income levels yield divergent preferences. For Tehran’s banks, the imperative lies in converting routine transactions into culturally resonant experiences—where every interaction reinforces emotional bonds, turning ATMs into memory-making touchpoints rather than mere cash dispensers.