a Faculty of Management, Universiti Teknologi Malaysia, 81310 UTM Skudai, Malaysia b Universiti Pendidikan Sultan Idris, Malaysia
This study examined the relationship and the impacts of e-SQ and e-Satisfaction on e-Loyalty in internetbanking. The modified version of E-SERVQUAL instrument was used to determine e-SQ for internetbankingservice of a commercial bank in Malaysia. Questionnaires were collected randomly from 265 internetbanking users. The findings indicated that assurance-fulfillment, efficiency-system availability; privacy, contact-responsiveness and website aesthetics and guide constitute e-SQ for the internetbankingservice. Website aesthetics and Guide, Efficiency-System availability and Contact-Responsiveness of the internetbanking e-SQ were positively affected e-Satisfaction. E-Satisfaction was positively significant to e-Loyalty. E-Satisfaction was found to partially mediate the relationship of Website aesthetics and Guide of e-SQ and customer e-Loyalty. The result highlighted that attractiveness and appearance , and the information and guidance provide by the websites are important features to internetbanking users. This finding reflected that in internetbanking, beside the technical and functionality aspects of -SQ, such as efficiency, fulfilment and system availability, the aesthetic value and proper guidance of the websites are also crucial to ensure quality of e-SQ that will lead to e-Satisfaction and e-Loyalty.
ABSTRACT: This study aims to examine comprehensively the impact of servicequality dimensions on both customersatisfaction and customerloyalty as well as the effect of customersatisfaction on the factors of customerloyalty in Vietnam’s supermarkets. Using structural equation modelling and multiple regressions, the study analyzes the opinions of random 500 supermarket customers in Vietnam. Compatible with prior studies, the outcomes indicate that servicequality dimensions are crucial antecedents to raise the level of customersatisfaction and customerloyalty. Also, customersatisfaction has moderate impacts on customerloyalty. Finally, the research suggests future directions to develop a better understanding of the impacts of servicequality on customersatisfaction and customerloyalty in other jurisdictions and business sectors. Keywords: ServiceQuality; CustomerSatisfaction; CustomerLoyalty; Vietnam’s Supermarkets
summarize the following conclusions and suggestions for future studies. The information is summarized in Table 3 displayed that the hypothesis 1, 2, 3, 5 were supported and the hypothesis 4 were rejected. That strongly proved the existence of the reliability, fulfillment, efficiency and website design effect on customersatisfaction. In addition, we also successfully prove customersatisfaction positively influences on customerloyalty. However, rejected proposed hypothesis 4 in this study can be explained by following reasons. According to Lewis and Soureli (2006), defined that trust as “a feeling of security, based primarily on the belief that one party's behavior is guided by favorable intentions towards the best interest of the other” as such on the context of Internetbanking in Vietnam, trust is related to risk and insecurity among online customers when they perform financial activities. In Vietnam, customers feel safer to using cash and make directly transaction in bank counters than via Internet, they don’t want to solve the error by themselves as well as customers really worried about that their personal and security information was leaked to others. Specially, it is difficult to change the habits of Vietnam customers who are the slowest to adapt to new technology. The overall findings on the factors affecting customersatisfaction with Internetbanking services show that customer expectations towards the qualityservice have an effect on their satisfaction and loyalty. This would mean that emphasizing in servicequality, its convenience and ease of transfers between accounts in the same bank or even cross-bank transfers, accurate transaction, free-error and so on has a significant effect on customersatisfaction. A more satisfied customer means a more loyal customer, which eventually flows through to the bank’s profit (Reichheld and Sasser, 1990). Combined these are key to operating a successful service business. Using these factors to further develop Internetbanking system would not be a waste of resources, since commercial banks would see clearly the factors that would lead to meeting customer needs and thus customersatisfaction.
As is the case with most research projects, this study also features some limitations that should be considered. First, the measurement scales which are used for measuring servicequality and customersatisfaction are not so optimal for the purpose of this research. Servicequality and customersatisfaction should be measured with more comprehensive models which are suggested in the literature, such as the SERVQUAL or National CustomerSatisfaction Index methods. Unfortunately, because of the limited resources and the fact that such data is often difficult and costly to collect, this study used a direct scale to measure servicequality and customer satisfac- tion. Second, the results presented in this study are based on the analysis of a causal model with cross-sectional data. It is not optimal because the time orders of the constructs, which are one of the important elements in causal model analysis, are ignored. Therefore, definite evidence of a causal effect cannot be inferred. Future research should attempt to collect pooled time series and cross-sectional data in order to investigate the objectives of this study. Moreover, customersatisfaction is found to mediate the relationship between customerloyalty and servicequality just partly in the Vietnamese retail banking sector. This raises the question whether there are other constructs which can also explain the impacts of servicequality on customerloyalty. These can be used as research questions for future research in the field.
In a competitive market place, understanding customer’s needs is very valuable. Therefore, companies are preferring customers over products nowadays. Satisfaction is the main source of attracting customers (Patterson et al., 1997). Customerloyalty has become a great challenge for companies in the current era (Khalifa & Liu, 2003). In banking sector, it is very important to understand the factors leading to satisfaction, which will evidently lead to loyalty (Vanriel et al., 2001). The competition is increasing day-by-day regarding services in banking sector. It has been observed that Information Technology is replacing the human labor at a rapid rate (Jun & Cai, 2001). It has been proved that organizations need to give more consideration towards customersatisfaction (Parasuraman & Grewal, 2000). Mols (2000) argued that the home-based Internetbanking might lead to strong relationships with customers because customer expectations have a tendency to change over time. In the same manner, servicequality is another important issue while gaining customersatisfaction. Maintaining servicequality is extremely necessary in current and highly competitive banking sector (Mefford, 1993). For this, bankers need to identify the attributes affecting customersatisfaction. Literature gives very limited information related to these attributes (Jun & Cai, 2001). More research should be conducted to know about the attributes leading to customersatisfaction (Parasurman et al., 1991). Servicequality has a great impact on firm’s performance . Between academics customersatisfaction and servicequality is considered as a distinct feature and bears great importance (Oliver, 1980). Most experts agree that customersatisfaction is a short-term measurement tool where as servicequality is a long-term tool (Howcroft et al., 2002). Servicequality is determined by the comparison made by the customers between their expectations and experiences (Gurau, 2002; Parasuraman et al., 1988).
This methodology part attributes how the research has been conducted to understand the impacts of servicequality of Internetbanking on customersatisfaction. Questionnaire is issued to the Internetbanking users in Thanamalvila regional area. This methodology part of the research study mainly focuses on discussing those research methods and techniques used by the researcher while justifying the reasons for use those methods. As a very important element of a research study data collection method, tools and the sampling techniques are discussed after the research design. Then the researcher describes the data analyzing methods that are used to find the answers to the research questions. Data presentation methods are also explained.
The growth in the Indian Banking Industry has been more qualitative than quantitative and it is expected to remain the same in the coming years. Based on the projections made in the "India Vision 2020" prepared by the Planning Commission and the Draft 10th Plan, the report forecasts that the pace of expansion in the balance-sheets of banks is likely to decelerate. The total assets of all scheduled commercial banks by end-March 2010 is estimated at Rs 40,90,000 cores. That will comprise about 65 per cent of GDP at current market prices as compared to 67 per cent in 2002-03. Bank assets are expected to grow at an annual composite rate of 13.4 per cent during the rest of the decade as against the growth rate of 16.7 per cent that existed between 1994-95 and 2002-03. It is expected that there will be large additions to the capital base and reserves on the liability side. The Indian Banking Industry can be categorized into non-scheduled banks and scheduled banks. Scheduled banks constitute of commercial banks and co-operative banks. There are about 67,000 branches of Scheduled banks spread across India. As far as the present scenario is concerned the Banking Industry in India is going through a transitional phase. The Public Sector Banks (PSBs), which are the base of the Banking sector in India account for more than 78 per cent of the total banking industry assets. Unfortunately they are burdened with excessive Non Performing assets (NPAs), massive manpower and lack of modern technology. On the other hand the Private Sector Banks are making tremendous progress. They are leaders in Internetbanking, mobile banking, phone banking, ATMs. As far as foreign banks are concerned they are likely to succeed in the Indian Banking Industry. In the Indian Banking Industry some of the Private Sector Banks operating are IDBI Bank, ING Vyasa Bank, SBI Commercial and International Bank Ltd, Bank of Rajasthan Ltd. and banks from the Public Sector include Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank among others. ANZ Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd, Citibank are some of the foreign banks operating in the Indian Banking Industry.
Internetbanking is one of the increasingly important businesses in electronic business worldwide. Building loyalty in internetbanking is significant for banks to guarantee high rate of customer retention and reduced cost for recruiting new customers which leads to long-term profitability. From the banks perspective, to retain their customers, they should try to make customers satisfied with their services and offerings, and this can be achieved through delivering high quality of electronic service (e-SQ). Most studies in e-SQ researches indicated that e-SQ and e- satisfaction have strong correlation and e-SQ is significantly and positively affected e-satisfaction (Zeithaml, 2002). Subsequently, high e-SQ, with high e-satisfaction will contribute to the customer retention and e-loyalty (Parasuraman et al., 2005). This fact makes it important for the banks to have a clear view on the impacts of their internetbanking e-SQ and e-satisfaction on e-loyalty to stay in competitive in the market.
5.3.1 Suggestion for Future Research
1. For future study, an additional variable would be a great idea to be included in the next research. Variable such as perceived quality can be included in the research. Therefore, researcher to be able to get a better understanding on the impacts of customer’s satisfaction regarding the services being offered. In addition, further research can develop a more comprehensive model to examine servicequality and electronic servicequality of online transportation services, based on the moderation of age, for instance.
Internetbanking still remains as the coherent and most cost-effective channel for the banks as well as for customers. A significant feature of online Banking or internetbanking is the permits customers to access their bank accounts 24/7, which is a new experience. ServiceQuality is the main factor that determines the success or failure of internetbanking. Inability to measure the servicequality is detrimental to the growth of the internetbanking. Customers tend to demand equal or higher levels of servicequality based on-line than the traditional services. In this context, the research was carried out to identify the Impact of servicequality of Internetbanking on customers’ satisfaction in Kegalle district. The study was carried out with three dimensions as reliability, efficiency, and responsiveness to measure the servicequality of internetbanking and two dimensions to measure the customersatisfaction as customerloyalty and customer attitude. Data were collected using questionnaire within the 200 sample. Based on the findings of the study, it concluded that servicequality of internetbanking is a good predictor of the customersatisfaction and there is a positive relationship between the servicequality of internetbanking and customersatisfaction. As well as all the dimensions of the servicequality of internetbanking are significant predictors of the customersatisfaction. There are no significant differences in level of perceptions regarding the servicequality of internetbanking by demographic factors.
The present study aims to investigate the relationship among customer perceived value, satisfaction, loyalty and switching cost in internetbankingservice. The model in this research tries to explain how it work and how this model apply to the market. Traditionally, some previous researches study about customerloyalty (Juy-Shen Chiou, 2004, Serkan Aydin et al., 2005), customersatisfaction (Eugene W.Anderson and Mary W.Sullivan, 1993, Roger Hallowell, 1996) and servicequality (Dina Ribbink et al., 2004). Moreover, some researchers also had some studies about internetbankingservice (Margaret Tan and Thompson S.H.Teo, 2000, Bomil Suh and Ingoo Han, 2003). There have been very limited studies that research about the relationship among customer perceived value, satisfaction, loyalty and switching cost (Zhilin Yang and Robin T.Peterson, 2004, Shun Yin Lam et al, 2004).
Even though the aforementioned five dimensions have been widely used to measure servicequality, several researchers have criticized the validity of the SERVQUAL instrument. For example, Cronin and Taylor  indicated that servicequality could be best measured based on three factors namely, expectations, performance and importance of several service characteristics such as equipment and service environment, employees appearance and performance and service delivery. In the context, of the banking sector, Gounaris  argued that the SERVQUAL model mostly assesses customer perceptions about employees and service environment while it does not account for other critical elements of the servicequality such as product innovativeness and price. Hence, it based on the SERVQUAL model suggested that perceived servicequality in the context of the banking sector should be consisted of six dimensions namely, employee competence, bank’s reliability, and product innovativeness, value for money, physical evidence and proximity convenience of the bank. Regardless of the way servicequality has been measured, its impact on several aspects of consumer behavior is evident. Servicequality influences strongly customers’ perceived value, satisfaction, re-visit as well as word-of-mouth intentions [10, 12, 17, 18]. As previously mentioned, most of the researchers agree that servicequalityimpacts indirectly loyalty via satisfaction [4, 14, 8] whereas a number of studies have proved the direct impact of servicequality on loyalty. Bloemer  revealed that the reliability and efficiency of a serviceimpacts on the level of customers’ loyalty. Similarly, Bloemer  highlights that the relationship between servicequality and loyalty is unclear and needs further investigation. Hence, the present study examines the impact of bank servicequality factors (i.e. employee competence, bank’s reliability, and product innovativeness, value for money, physical evidence and proximity-convenience) on customers’ loyalty.
Overall, the correlation results show that there is a significant relationship between servicequality dimensions and customersatisfaction, while, the results from regression testing show that only three servicequality dimensions have positive effect on customersatisfaction, i.e. after-sales service, empathy and responsiveness, while the rest, i.e. reliability, tangibles, product compliance and assurance are not significant. Regarding those factors, i.e. assurance, product compliance and reliability, even though the items, such as interpersonal skills and knowledge are important, based on this research, customers focus more on other factors, such as after-sales service which are more related to the matters of post purchase experience. Thus, banks should holistically improve the servicequality on lower correlated factors, such as assurance, product compliance or reliability in order to improve the overall performance of the bank. Otherwise it is hard for banks to maintain the customerloyalty due to stiff rivalry. Both banks, i.e. Maybank Islamic Berhad and Bank Islam Malaysia Berhad, should exercise good services offer to their customers with regards to officer ability, capability and also product features. One the most important aspects to be countered by banks is the training for their officers. This action should be taken seriously in order to refresh and upgrade the officer skill. As discussed from previous literature and findings of this paper, it is imperative for banks to attain and provide ample training to bank officers regarding servicequality. The possible context of the training can be conducted based on the proposed servicequality model from this research on how to increase the aspects of servicequality, such as after sales services, empathy, responsiveness, tangibles, reliability, product compliance and assurance. The findings of this paper validate the fact that certain facets of service delivery, such as the quality of the human interaction between bank officer and customers, are still important even in today’s phase of information technological advancement. Although Islamic banks should focus and invest in resources of developing internetbanking facilities, and improving the access to bank services, Islamic banks also need to pay attention to the unchanging aspect of servicequality including the attitude of bank officers. At the end, only by recognising all the dimensions of servicequality will the Islamic banking in Malaysia succeed ultimately in fulfilling the customers’ expectations.
This is also evident from the number of banks that implement the dual banking system where conventional banks form Islamic banking units. In fact, there are now a number of Islamic banks that have performed spin-off and are no longer in the form of UUS but BUS. This is due to the rules stated in the Act no. 21 of 2008 concerning Sharia Banking in article 68 paragraph 1 which states that "in the event that a Conventional Commercial Bank having a UUS of which its assets value has reached at least 50% (fifty percent) of the total asset value of its Parent Bank or after 15 (fifteen) years of coming into force of this Act, the Conventional Commercial Bank must conduct a UUS Splitting (spin off) tu turn it into an Islamic Commercial Bank".
In the business world e-commerce is thought to be an important topic of discussion. It provides an easy way of transaction through computers (Daniel, Wilson,& Myers, 2002). It provides reformation and reshaping the relationship between the customers and the suppliers. Kalakota and Whinston (1996) defined e-commerce as “the buying and selling of information, products and services through computer networks.” E-commerce is the easiest way for the professionals to use computer transactions. World Wide Web system is the most reliable source of getting the business information and better application solutions. World Wide Web provides the information about buying and selling, distribution, communication, customer services, payment, processing and delivery among customers’ and suppliers. Most of the organizations worldwide are adopting this system because it helps them to market their products and services online and it also helps them assist their customers directly through internet about their respective services and products without any human support. With the help of e- commerce customers can perform wide range of activities e.g. they can change their account settings, securing credit card information or loan, purchasing the required product through online shopping and much more (Molla & Liker, 2002).
The objective of this study is to measure the e-servicequality of internetbanking and the relationship with customersatisfaction in India. This study aims to explore the critical factors of e-servicequality of internetbanking in India and to measure the customers’ satisfaction of internetbanking on the identified e-servicequality dimensions. A survey method was carried out to acquire data from 650 respondents from India. Exploratory and confirmatory factor analysis was used to identify the dimensions of internetbanking. Mul- tiple Regression Analysis was used to test the relationship with e-service qual- ity dimensions and customersatisfaction of internetbanking. The study un- covered three factors of e-servicequality, namely, “Responsiveness,” “Effi- ciency,” and “Perceived Credibility”. “Responsiveness” found to be the most significant predictor of the e-servicequality of internetbanking. The study also found that there is a positive relationship exists between e-servicequality dimensions and customersatisfaction of internetbanking. These findings can be used by banks to improve the servicequality of their internetbanking ser- vice and thereby to satisfy their customers. The findings open up many busi- ness opportunities to India as well as other Asian countries. The digital pay- ments industry can concentrate on improving the security of the payment systems, gateways, and payment networks. Advanced technologies can be de- veloped to improve the digital payment systems which offer many business opportunities for creating computers, smartphones, and innovation in inter- net and security software. The study findings can be used by banks to im- prove the servicequality of internetbanking and attract more customers to- wards using this service. The improvement in servicequality comprising of responsiveness, efficiency, and perceived credibility automatically leads to the customersatisfaction of internetbanking services, which gives competitive advantages to the banks. This study is an attempt to cover both urban and rural population of India to understand the digital mindset by studying the quality perception of internetbanking channel.
The main reason of this study is to know more reliable common services of banking sector which has impact on customersatisfaction and to explore impact of satisfaction on loyalty of customer regarding their relationship with banking. Data is collected from 192 respondents. Convenience sampling method is used. SPSS is used to analyses data and AMOS is used to test the data. Results shows that customersatisfaction and loyalty have positive relationship and there is significant link between them (Zafar, 2012). This study is conducted on customersatisfaction towards banking services of state bank of India. Data is collected through interviews from 150 customers of bank. Chi square test and charts, percentage analysis are used to make analysis. It show there is significant relationship between service and customersatisfaction. (Rabb, 2014).
Timothy (2012), electronic banking is the utilization of the Internet as a remote supply channel for providing services, such as opening a deposit account, transferring funds among different accounts and electronic bills presentment and payment. Stan (1997) also defined electronic payment as a system of payment in which case transaction is done electronically without the use of cash. Magembe, and Shemi (2002) defined electronic banking as e-business in banking industry. E-banking is the universal term for delivery of banking services and products through electronic outlets, such as the telephone, the internet, cell phone, etc. The range and notion of electronic banking is still growing. It ensures an effective payment and accounting system as a result augmenting the promptness of delivery of banking services significantly (Uppal and Jatana, 2007). Ovia, (2001) claims that electronic banking is an invention of e-commerce in the field of banking and financial services. In what can be regarded as business to consumer purview for balance enquiry, request for cheque-books, stop payment instruction, balance transfer instruction, account opening and other forms of traditional banking services. Banks are also proposing payment services on behalf of their customers who shop indifferent e-shops.
Customersatisfaction is the result of the quality provided by the company. Customersatisfaction is the consumer response to the expectations with actual performance in the consumption process. Satisfaction appears after customers have tried the Internetbankingservice. It has been proven that customersatisfaction is influenced by internetbankingquality and customer value. Good quality will grow the value of customers and ultimately create satisfaction. Satisfaction should continue to be measured to know its levels and fluctuations. The bank should focus on maintaining the performance of the internetbankingservice in terms of both products, and system reliability. Products that do not provide accurate data will give a sense of dissatisfaction for customers. Therefore, a savings product that is reliable as the data can be kept by the bank. Ease of internetbanking operation also continues to be considered. Services that are too difficult to use can lead to customer dissatisfaction.
The most dominant contribution in the form of CRM technology is an indicator that is: restaurant provides internet site to submit customer complaints or suggestions, restaurant accomodate internet site for online ordering, the restaurant provides an easy phone number to be contacted. The main factors that affect the success or failure of CRM is technology. With the dominant dimension of CRM technology in forming variable, then the restaurant should be more serious to improve technology-based services in conjunction with CRM. CRM is a way to maintain and create CustomerLoyalty. CRM is essentially a collaboration with any customer who is able to create a state that is not detrimental to either party (win win situation). Similar results were also shown by studies Wetsch, Lyle R (2006) which states that by using the theory of justice to investigate the potential impacts that could be caused by the involvement of the customer in the CRM implementation to trust, CustomerSatisfaction and CustomerLoyalty . Feliks and Panjaitan (2012) also informs the existence of significant impact between CRM with CustomerLoyalty .