International Journal of Marketing and Business Communication

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Factors Affecting E-Banking Adoption and its Impact on Customer Satisfaction:A Case Study of Ethiopian Banks


Affiliations
1 Bahir Dar University, College of Business and Economics, Department of Marketing Management, Bahir Dar, Ethiopia
2 School of Management Studies, Punjabi University, Patiala, Punjab, India
     

   Subscribe/Renew Journal


Purpose: The aim of the present paper was to identify current customers of e-banking by predicting their intention to use and its acceptance and impacts on customer satisfaction in selected banks of Ethiopia.

Research philosophy and approaches: The philosophy of this research was positivism philosophy and the approach of this research is a deductive approach, the type of the research was quantitative type/cross-sectional survey design.

Design/methodology: The design of this study was conclusive/inferential research design. Data was collected from a self-administered survey from selected banks of Ethiopia. Exploratory Factory Analysis (EFA) by using SPSS 16 and Confirmatory Factor Analysis (CFA) by using AMOS 21 in order identify the factors those affect e-banking adoption. Finally, SEM analysis was done to check the impact of TAM (technology acceptance model) on customer satisfaction.

Findings: Perceived ease of use and perceived usefulness were significantly influences the intentions of electronic banking users, intentions of Electronic Banking were significantly influences the Actual usage of Electronic Banking Services and lastly actual usage of electronic banking affect customer satisfaction.

Research limitations/implications: Sampling issue (researchers select only five banks' customers (Commercial, Wogagen, Dashen, Zemen Bank, and Nib International Bank of Ethiopia purposively) but these five banks are not the only banks to provide e-bank services in Ethiopia); there are other banks as well in Ethiopia. As a result, the analytical results presented here thus may have limited generalisability and care should be taken when generalising the findings of this study.

Originality/value: This paper was a pioneer study of satisfaction with electronic banking adoption, especially of the relationships between Technology adoption factors with and its impacts on customer satisfaction.


Keywords

Electronic Banking, Perceived Ease of Use, Perceived Usefulness, Intention, Actual Usage, Customer Satisfaction.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Abdinnour-Helm, S., Chaparro, B., & Farmer, S. (2005). Using the end-user computing satisfaction (EUCS) instrument to measure satisfaction with a web site. Decision Sciences, 36(2), 341-364.

  • Abdullah, M. A. A. (2005). Security, perceptions, and practice: challenges facing adoption of online banking in Saudi Arabia. PhD dissertation, The School of Engineering and Applied Science, The George Washington University, Washington, DC.

  • Adesina, A. A., & Ayo, C. K. (2010). An empirical investigation of the level of users’ acceptance of e-banking in Nigeria. Journal of Internet Banking and Commerce, 15(1).

  • Al-Somali, S. A., Gholami, R., & Clegg, B. (2009). An investigation into the acceptance of online banking in Saudi Arabia. Technovation, 29, 130-141.

  • Anderson, E. W., Fornell, C., & Lehmann, D. R. (1994). Customer satisfaction, market share, and profitability: findings from Sweden. Journal of Marketing, 58(3), 53-66.

  • Anderson, R., & Srinivasan, S. (2003). e-Satisfaction and e-Loyalty: A contingency framework. Psychology & Marketing, 20(2), 123-138.

  • Bauer, H. H., Hammerschmidt, M., & Falk, T. (2005). Measuring the quality of e-banking portals. International Journal of Bank Marketing, 23(2), 153-175.

  • Bernardo, M., Marimon, F., & Alonso-Almeida, M. M. (2012). Functional quality and hedonic quality: A study of the dimensions of e-service quality in online travel agencies. Information & Management, 49(7), 342-347.

  • Bryman, A., & Bell, E. (2003). Business research methods. Oxford University

  • Carmines, E. G., & McIver, J. P. (1981). Analyzing models with unobserved variables: Analysis of covariance structures. Social Measurement, 19, 65-110.

  • Casalo, L., Flavia, N. C., & Guinalı, U. M. (2008). The role of satisfaction and website usability in developing customer loyalty and positive word-of-mouth in the e-banking services. International Journal of Bank Marketing, 26(6), 399-417.

  • Chang, H. H., & Chen, S. W. (2009). Consumer perception of interface quality, security, and loyalty in electronic commerce. Information & Management, 46(7), 411-7.

  • Chen, P. Y., & Hitt, L. M. (2002). Measuring switching costs and the determinants of customer retention in Internet-enabled businesses: a study of the online brokerage industry. Information Systems Research, 13(3), 255-74.

  • Chen, Y. H., & Barnes, S. (2007). Initial trust and online buyer behavior. Industrial Management & Data Systems, 107(1), 21-36. doi:10.1108/02635570710719034, http://dx.doi.org/10.1108/02635570710719034

  • Cheng, T. C. E., Lam, D. Y. C., & Yeung, A. C. L. (2006). Adoption of Internet banking: An empirical study in Hong Kong. Decision Support Systems, 42, 1558-1572.

  • Chirani, T., & Rahmati, G. (2009). Designing a model for rate of Internet banking adoption”, paper presented at Banking Services Marketing International Conference, Tehran (in Farsi).

  • Chiu, Y. B., Lin, C. P., & Tang, L. L. (2005). Gender differs: assessing a model of online purchase intentions in e-tail service. International Journal of Service Industry Management, 16(5), 416-35.

  • Chong, A., Ooi, K., Lin, B., & Tan, B. (2010), “Online banking adoption: an empirical analysis. International Journal of Bank Marketing, 28(4), 267-87.

  • Collier, J. E., & Bienstock, C. C. (2006). Measuring service quality in e-retailing. Journal of Service Research, 8(3), 260-275.

  • Creswell. S. W. (2003). Research design, quantative, qualitative and mixed approaches (2nd ed.).

  • Curran, J. M., & Meuter, M. L. (2005). Self-service technology adoption: Comparing three technologies. Journal of Services Marketing, 19(2), 103-13.

  • Dabholkar, P. (1996). Consumer evaluations of new technologybased self-service options: An investigation of alternative models of service quality. International Journal of Research in Marketing, 13, 29-51.

  • Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1989). User acceptance of computer technology: a comparison of two theoretical models. Management Science 35, 982-1003.

  • Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13, 983-1003.

  • Eriksson, K., Kerem, K., & Nilsson, D. (2005). Customer acceptance of Internet banking in Estonia. International Journal of Bank Market, 23(2), 200-216. doi:10.1108/02652320510584412. Retrieved from http://dx.doi.org/10.1108/02652320510584412

  • Finn, A. (2010). The generalizability of the effects of retailer e-service quality dimensions. Canadian Journal of Administrative Sciences, 27, 24-38.

  • Flavia’n, C., & Guinalı’u, M. (2006). Consumer trust, perceived security, and privacy policy: three basic elements of loyalty to a website. Industrial Management & Data Systems, 106(5-6), 601-20.

  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.

  • Freed, L. (2011). UK 2011 foresee results online banking study. Retrieved from http://bankblog.optirate.com/wp-content/uploads/2011/07/u.s.-foresee-results2011-online-banking-study.pdf (accessed September 26, 2016).

  • Gefen, D., & Straub, D. W. (2000). The relative importance of perceived ease of use in IS adoption: a study of e-commerce adoption. Journal of the Association for Information Systems, 1(8), 1-28.

  • Gerrard, P., Cunningham, J. B., & Devlin, J. F. (2006), “Why consumers are not using Internet banking: A qualitative study. Journal of Services Marketing, 20(3), 160-168.

  • Gounaris, S., & Koritos, C. (2008). Investigating the drivers of Internet banking adoption decision: a comparison of three alternative frameworks. International Journal of Bank Marketing, 26(5), 282-304.

  • Gupta, K. K., & Bansal, I. (2012). Development of An instrument to measure Internet banking service quality in India. New Delhi.

  • Hair, J. F., Black, C. W., Babin, J. B., Anderson, R. E., & Tatham, L. R. (2006), Multivariate data analysis (6th ed.), Pearson, Upper Saddle River, NJ.

  • Hair, J. F., Black, W., Babin B., & Anderson, R. (2010). Multivariate data analysis (7th ed.). Prentice Hall Inc., Upper Saddle River, NJ.

  • Hamadi, C. (2010). The impact of quality of online banking on consumer commitment. Communications of the IBIMA2.

  • Herington, C., & Weaven, S. (2009). E-retailing by banks: E-service quality and its importance to customer satisfaction. European Journal of Marketing, 43(9/10), 1220-1231.

  • Hong, W., Thong, J. Y. L., Wong, W. M., & Tam, K. Y. (2001). Determinants of user acceptance of digital libraries: An empirical examination of individual differences and system characteristics. Journal of Management Information Systems, 18(3), 97-124.

  • Jahangir, N., & Begum, N. (2008). The role of perceived usefulness, perceived ease of use, security and privacy, and customer attitude to engender customer adaption in the context of electronic banking. Africa Journal of Business Management, 2(1), 32-40.

  • Joreskog, K. G., & Sorbom, D. (1996). PRELIS 2 user’s reference guide. Chicago, IL: Scientific Software International.

  • Joseph, M., McClure, C., & Joseph, B. (1999). Service quality in the banking sector: the impact of technology and service delivery. The International Journal of Bank Marketing, 17(4), 182-91.

  • Khanifar, H., Niya, M. J. M., Jandaghi, G. R., Molavi, Z., & Emami, M. (2012). Factors influencing the intendancy of e-Banking: An integration of TAM and TPB with e-Service quality. Journal of Applied Sciences and Research, 8(3), 1842-1852.

  • Lai, V. S., & Li, H. (2005). Technology acceptance model: an invariance analysis. Journal of Information and Management, 42(2), 373-386.

  • Lee, G. G., & Lin, H. F. (2005). Customer perceptions of e-service quality in online shopping. International Journal of Retail and Distribution Management, 33(2), 161-76.

  • Liao, Z., & Cheung, M. T. (2008). Measuring customer satisfaction in Internet banking; a core framework. Communications of the ACM, 51(4), 47-51.

  • Liao, Z., & Cheung, M. T. (2002). Internet-based e-banking and consumer attitudes: An empirical study. Information & Management, 39, 283-295.

  • Liebana-Cabanillas, F., Munoz-Leiva, F., & RejonGuardia, F. (2013). The determinants of satisfaction with e-banking.

  • Lin, G. T. R., & Sun, C. C. (2009). Factors influencing satisfaction and loyalty in online shopping: an integrated model. Online Information Review, 33(3), 458-75.

  • Malthotra. (2008). Marketing research, an applied orientation (5th Ed.). Dorling Kindersley (India) Pvt.Ltd.

  • Margaret, T., & Thompson, S. H. T. (2000). Factors influencing the adoption of Internet banking. International Journal of Management, 19(1), 63-74.

  • McAlexander, J. H., Schouten, J. W., & Koenig, H. F. (2002). Building brand community. Journal of Marketing, 66(1), 38-54.

  • McHaney, R., Hightower, R., & Pearson, J. (2002). A validation of the end-user computing satisfaction instrument in Taiwan. Information & Management, 39(6), 503‐11.

  • Meuter, M. L., Ostrom, A. L., Rountree, R. I., & Bitner, M. J. (2000). Self-service technologies: understanding customer satisfaction with technology-based service encounters. Journal of Marketing, 64, 50-64.

  • Morris, M. G., & Turner, J. M. (2001). Assessing users’ subjective quality of experience with the World Wide Web: an exploratory examination of temporal changes in technology acceptance. International Journal of Human-Computer Studies, 54(6), 877-901.

  • Nysveen, H., Pedersen, P., & Thornbjørnsen, H. (2005). Intentions to use mobile services: antecedents and cross-service comparisons. Journal of Academy of Marketing Science, 33(3), 330-46.

  • Ombati, T. O., Mangatu, P. O., Nyamwange, S. O., & Nyaoa, R. B. (2010). Technology and service quality in the banking industry. African Journal of Business and Management (AJBUMA), 1, 151-164.

  • Parasuraman, A., & Grewal, D. (2000). The impact of technology on the quality-value-loyalty chain: a research agenda. Journal of the Academy of Marketing Science, 28(1), 168-74.

  • Parasuraman, A., & Zinkhan, G. M. (2002). Marketing to and serving customers through the internet: An overview and research agenda. Journal of the Academy of Marketing Science, 30(4), 286-295.

  • Parasuraman, A., Zeithaml, V. A., & Malthotra, A. (2005). E-S-QUAL A Multiple-Item Scale for Assessing Electronic Service Quality, University of Miami. Journal of Service Research, 7(10), 20051-21.

  • Pentji, L. H., Marimon, F., & Casadesus, M. (2011). Customer’s loyalty and perception of ISO 9001 in online banking. Industrial Management & Data System, 111(8), 1194–1213.

  • Pikkarainen, K., Pikkarainen, T., Karjaluoto, H., & Pahnila, S. (2004). Consumer acceptance of online banking: An extension of the technology acceptance model. Internet Research, 14(3), 224-235.

  • Plessis, F. D., & Rousseau, G. G. (2007). Buyer behaviour: Understanding consumer psychology and marketing. Oxford University Press Southern Africa: Cape Town.

  • Poon, W. C. (2008). Users adoption of e-banking services: The Malaysian perspective, Journal of Business and Industrial Marketing, 23(1), 59-69.

  • Qureshi, T. M., Zafar, M. K., & Khan, M. B. (2008) Customer acceptance of online banking developing economies. Journal of Internet Banking and Commerce, 13(1).

  • Reibstein, D. J. (2002). What attracts customers to online stores, and what keeps them coming back? Journal of the Academy of Marketing Science, 30(4), 465-73.

  • Sadeghi, T., & Heidarzadeh, H. K. (2010). Customer satisfaction factors (CSFs) with online banking services in an Islamic country I.R. Iran. Journal of Islamic Marketing, 1(3), 249-267.

  • Santos, J. (2003). E-service quality: A model of virtual service quality dimensions. Management Service Quality, 13(3), 233-46.

  • Sanzo, M. J., Santos, M. L., Vazquez, R., & A´lvarez, L. I. (2003). The effect of market orientation on buyer-seller relationship satisfaction. Industrial Marketing Management, 32(4), 327-45.

  • Saunders, M., Lewis, P., & Thornhill, A. (2003). Research methods for Business Students (3rd Ed.). Essex: Prentice Hall.

  • Shumacker, R. E., & Lomack, R. G. (2010). A beginner’s guide to structural equation modelling (3rd Ed.). Taylor and Francis Group, LLC

  • Sikdar, P., Kumar, A., & Makkad, M. (2015). Online banking adoption a factor validation and satisfaction causation study in the context of Indian banking customers.

  • Somers, T. M., Nelson, K., & Karimi, J. (2003). Confirmatory factor analysis of the end-user computing satisfaction instrument: Replication within an ERP domain. Decision Sciences, 34(3), 595-621.

  • Straub, D. W. (1989). Validating instruments in MIS research. MIS Quarterly, 13(2), 147-169.

  • Taylor, S., & Todd, P. (1995). Assessing IT usage the role of prior experience. MIS Quarterly, 19(4), 561-570.

  • Tobbin, P. (2012). Towards a model of adoption in mobile banking by the unbanked: A qualitative study, 14(5), 74-88. Q Emerald Group Publishing Limited, ISSN 1463-6697

  • Venkatesh, V. (2000). Determinants of perceived ease of use: Integrating control, intrinsic motivation, and emotion into the technology acceptance model. Information Systems, 11(3), 42-65.

  • Venkatesh, V., & Davis, F. D. (2000). A theoretical extension of the technology acceptance model: four longitudinal field studies. Management Science, 46(2), 186-204.

  • Wu, I. L. (2013). The antecedents of customer satisfaction and its link to complaint intentions in online shopping: an integration of justice, technology, and trust. International Journal of Information Management, 33(1), 166-176.

  • Xue, M., & Harker, P. T. (2002). Customer efficiency: Concept and its impact on e-business management. Journal of Service Research, 4(4), 253-67.

  • Yamane, T. (1967). Statistics: An introductory analysis (2nd Ed.). Harper and Row, New York.

  • Yen, C., & Lu, P. (2008). Effects of e-service quality on loyalty intention: An empirical study in online auction. Managing Service Quality, 18(2), 127-146.

  • Yoon, C. (2010). Antecedents of customer satisfaction with online banking in China: The effects of experience. Computers in Human Behavior, 26, 1296-1304.

  • Zaichkowsky, J. L. (1985). Measuring the involvement construct. Journal of Consumer Research, 12(4), 341-352.

  • Zeithaml, V. A, Bitner, M. J., & Gremler, D. D. (2009). Service marketing: Integrating customer focus across the firm. Boston: McGraw-Hill/Irwin

  • Zhou, T., & Lu, Y. (2011). Examining mobile instant messaging user loyalty from the perspectives of network externalities and flow experience. Computers in Human Behavior, 27(2), 883-889.

  • Zhu, F. X., Wymer, W., & Chen, I. (2002). IT-based services and service quality in consumer banking. International Journal of Service Industry Management, 13(1), 69-91.


Abstract Views: 816

PDF Views: 2




  • Factors Affecting E-Banking Adoption and its Impact on Customer Satisfaction:A Case Study of Ethiopian Banks

Abstract Views: 816  |  PDF Views: 2

Authors

Philipos Lamore Bambore
Bahir Dar University, College of Business and Economics, Department of Marketing Management, Bahir Dar, Ethiopia
Vikas Singla
School of Management Studies, Punjabi University, Patiala, Punjab, India

Abstract


Purpose: The aim of the present paper was to identify current customers of e-banking by predicting their intention to use and its acceptance and impacts on customer satisfaction in selected banks of Ethiopia.

Research philosophy and approaches: The philosophy of this research was positivism philosophy and the approach of this research is a deductive approach, the type of the research was quantitative type/cross-sectional survey design.

Design/methodology: The design of this study was conclusive/inferential research design. Data was collected from a self-administered survey from selected banks of Ethiopia. Exploratory Factory Analysis (EFA) by using SPSS 16 and Confirmatory Factor Analysis (CFA) by using AMOS 21 in order identify the factors those affect e-banking adoption. Finally, SEM analysis was done to check the impact of TAM (technology acceptance model) on customer satisfaction.

Findings: Perceived ease of use and perceived usefulness were significantly influences the intentions of electronic banking users, intentions of Electronic Banking were significantly influences the Actual usage of Electronic Banking Services and lastly actual usage of electronic banking affect customer satisfaction.

Research limitations/implications: Sampling issue (researchers select only five banks' customers (Commercial, Wogagen, Dashen, Zemen Bank, and Nib International Bank of Ethiopia purposively) but these five banks are not the only banks to provide e-bank services in Ethiopia); there are other banks as well in Ethiopia. As a result, the analytical results presented here thus may have limited generalisability and care should be taken when generalising the findings of this study.

Originality/value: This paper was a pioneer study of satisfaction with electronic banking adoption, especially of the relationships between Technology adoption factors with and its impacts on customer satisfaction.


Keywords


Electronic Banking, Perceived Ease of Use, Perceived Usefulness, Intention, Actual Usage, Customer Satisfaction.

References