Journal of Commerce and Accounting Research

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

Does Service Quality Matters in the Context of Internet Banking? A Perceptual Analysis of India’s Internet Banking Customer’s Perception Regarding Service Quality, Trust, Satisfaction and Loyalty


Affiliations
1 Akal University, Talwandi Sabo, Bathinda, Punjab, India
     

   Subscribe/Renew Journal


Purpose: The purpose of this paper is to explore the various Internet banking service quality factors and how these certain antecedents influencing the customer’s trust, satisfaction and loyalty.

Research Methodology: A total of 200 questionnaires were distributed among B2C Internet banking customers in India and 133 were returned resulting 66.5% response rate. The implication of Internet banking service quality on customer’s trust, satisfaction and loyalty was examined. The study’s conceptual model and hypothesis were tested using SPSS19.

Findings: The results proved that the all four antecedents of Internet banking service quality are distinct construct. They all have appropriate reliability and each construct influences online customers trust, their satisfaction level and help in building a loyal customer base. The efficiency of banking website is important construct of Internet banking service quality. The study confirms that the impact of e-satisfaction is more on e-loyalty than e-trust and e-satisfaction drives e-trust also.

Research Implication

Limitation-The sample size is not large enough, so the results should be interpreted with caution as regards to generalization of research finding of Indian consumer as a whole because sample is collected from some part of Punjab and Chandigarh.

Future Work-Future research needs to focus on a larger cross section of internet users and more diversified random samples to verify findings of current study. Focus can be made regarding the comparative studies with other states or other developed / developing countries in order to find out whether effect of individual service quality factor influencing adoption of Internet banking in competitive mix may be more/less in other markets, and whether effect of customer satisfaction and trust on loyalty may be more or less. Moreover, research could be enhanced by expanding current model and cultural factors could be investigated to add further depth as India, a multi-cultural country.

Practical Implication: This paper can help in fostering growth of Indian online banking in the future as these can be used as guidelines for financial service sector companies who want to enter into click-to-click in Indian market or want to have a long lasting customer relationship. Banks should focus their efforts on website service quality which will help in long lasting relation with the customer. This area needs more attention from banks / financial service sector, so that required added facilities can be attached to website for having competitive advantage.

Originality: This is the first time that such an exhaustive study has been carried out based on Punjab and Chandigarh bank customers. It gives a perspective on how certain Internet banking service quality affect customer’s satisfaction, trust and loyalty and to check whether e-satisfaction drives e-trust.


Keywords

Internet Banking, Satisfaction, Loyalty, Service Quality.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Al-Hawari, M. A. A. (2014). Does customer sociability matter? Differences in e-quality, e-satisfaction and e-loyalty between introvert and extravert online banking users. Journal of Services Marketing, 28(7), 538-546.

  • Al-Hawari, M. A. A. (2015). How the personality of retail bank customers interferes with the relationship between service quality and loyalty. International Journal of Bank Marketing, 33(1).

  • Amin, M., Isa, Z., & Fontaine, R. (2013). Islamic banks: Contrasting the drivers of customer satisfaction on image, trust, and loyalty of Muslim and non-Muslim customers in Malaysia. International Journal of Bank Marketing, 3(2), 79-97.

  • Amin, M. (2015). Internet banking service quality and its implication on e-customer satisfaction and e-customer loyalty. International Journal of Bank Marketing, 34(3), 280-306.

  • Arino, L. V. C., Flavian, C., & Guinaliu, M. (2008). The role of satisfaction and website usability in developing customer loyalty and positive word of mouth in e-banking services. International Journal of Bank Marketing, 26(6), 399-417.

  • Ball, D., Coelho, P. S., & Machas, A. (2004). The role of communication and trust in explaining customer loyalty: An extension to the ECSI model. European Journal of Marketing, 38(9/10), 1272-1293.

  • Bauer, H. H., Falk, T., & Hammerschmidt, M. (2006). eTransQual: A transaction process-based approach for capturing service quality in online shopping. Journal of Business Research, 59(7), 866-875.

  • Bloemer, J., Ruyter, K., & Peeters, P. (1998). Investigating drivers of bank loyalty: The complex relationship between image, service quality and satisfaction. International Journal of Bank Marketing, 16(7), 276-286.

  • Carlson, J., & O’Cass, A. (2011). Developing a framework for understanding e-service quality, its antecedents, consequences, and mediators. Managing Service Quality, 21(3), 264-286.

  • Chang, H. H., & Chen, S. W. (2008). The impact of customer interface quality, satisfaction and switching cost on e-loyalty: Internet experience as a moderator. Computers in Human Behaviour, 24, 2927-2944.

  • Chellappa, R. K., & Pavlou, P. A. (2002). Perceived information security, financial liability and consumer trust in electronic commerce transactions. Logistics Information Management, 15(5/6), 358-368.

  • Chen, Q., Clifford, S. J., & Wells, W. (2000). Attitude toward the site: New information. Journal of Advertising Research, 42(2), 33-45.

  • Cristobal, E., Flavián, C., & Guinalíu, M. (2007). Perceived e-service quality (PeSQ): Measurement validation and effects on consumer satisfaction and web site loyalty. Managing Service Quality, 17(3), 317-340.

  • Cronin, J. J., & Taylor, S. A. (1992). Measuring service quality: A reexamination and extension. The Journal of Marketing, 56(3), 55-68.

  • Dhillion, G., & Torkzadesh, G. (2002). Measuring factors that influence the success of Internet commerce. Information System Research, 13(2), 187-204.

  • Eid, M. I. (2011). Determinants of internet banking customer satisfaction, trust and loyalty in Saudi Arabia. Journal of Electronic Commerce Research, 12(1), 78-93.

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

  • Fraering, M., & Minor, M. S. (2012). Beyond loyalty: Customer satisfaction, loyalty and fortitude. Journal of Services Marketing, 27(4), 334-344.

  • Fullerton, G., & Taylor, S. (2015). Dissatisfaction and violation: Two distinct consequences of the wait experience. Journal of Service Theory and Practice, 25(1), 31-50.

  • Garbarino, E., & Johnson, M. S. (1999). The different roles of satisfaction, trust, and commitment in consumer relationships. Journal of Marketing, 63(2), 70-87.

  • Geyskens, I., Steenkamp, J. B. E. M., Scheer, L. K., & Kumar, N. (1996). The effects of trust and interdependence on relationship commitment: A trans-Atlantic study. International Journal of Research in Marketing, 13(4), 303-317.

  • Gummerus, J., Liljander, V., Pura, M., & Reil, A. V. (2004). Customer loyalty to comten-based websites: The case of an online health-care service. Journal of Services Marketing, 18(3), 175-186.

  • Haq, Z. U. (2012). Perception towards online shopping: An empirical study of Indian consumers. National Monthly Referred Journal of Research in Commerce and Management, 1(9), 9-22.

  • 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.

  • Ho, C.-T. B., & Lin, W. -C. (2010). Measuring the service quality of internet banking: Scale development and validation. European Business Review, 22(1), 5-24.

  • Huffmire, D. (2001). Improving customer satisfaction, loyalty, and profit: An integrated measurement and management system. Choice, 38(5), 946-947.

  • Jacoby, J., & Kyner, D. B. (1973). Brand loyalty vs repeat purchasing behavior. Journal of Marketing Research, 10(1), 1-9.

  • Kandampully, J., Zhang, T., & Bilgihan, A. (2015). Customer loyalty: A review and future directions with a special focus on the hospitality industry. International Journal of Contemporary Hospitality Management, 27(3), 379-414.

  • Kassim, N. M., & Abdullah, N. A. (2008). Customer loyalty in Internet banking settings: An empirical study. Electronic Markets, 18(3), 275-290.

  • Kaura, V., Sharma, S., & Prasad, S. (2015). Service quality, service convenience, price and fairness, customer loyalty, and the mediating role of customer satisfaction. International Journal of Bank Marketing, 33(4), 1-27.

  • Keisidou, E., Sarigiannidis, L., & Maditinios, D. I. (2013). Customer satisfaction, loyalty and financial performance: A holistic approach of the Greek banking sector. International Journal of Bank Marketing, 31(4), 259-288.

  • Liao, C.-H., Yen, H. R., & Li, E. Y. (2011). The effect of channel quality inconsistency on the association between e-service quality and customer relationships. Internet Research, 21(4), 458-478.

  • Manzano, J. A., Mafe, C. R, Blas, S. S., & Navarre, C. L. (2011). Internet banking loyalty: Evaluating e role of trust, satisfaction, perceived risk and frequency of use. The Service Industries Journal, 31(7), 1165-1190.

  • Molla, A., & Licker, P. S. (2001). Internet banking systems success: An attempt to extend and respecify the Delone and Maclean model of IS success. Journal of Electronic Commerce Research, 2(4), 131-141.

  • Moorman, C., Zaltman, G., & Deshpande, R. (1992). The relationship between providers and users of market research: The dynamics of trust within and between organizations. Journal of Marketing Research, 29(3), 314-28.

  • Nsairi, Z. B., & Khadraoui, M. (2013). Website satisfaction: determinant and consequences on website loyalty. International Business Research, 6(9), 77-92.

  • Nunnally, J. C., & Bernstein, I. H. (1994). Comfort your online customer: Quality, trust, and loyalty on the internet. Managing Service Quality, 14(6), 446-456.

  • Oliver, R. L. (1980). A cognitive model of the antecedents and consequences of satisfaction decisions. Journal of Marketing Research, 17(4), 460-469.

  • Oliver, R. L. (1993). A conceptual model of service quality and service satisfaction: Compatible goals, different concepts. Advances in Services Marketing and Management, 2(4), 65-85.

  • Ong, K. S., Nguyen, B., & Alwi, S. F. S. (2017). Consumer-based virtual brand personality (CBVBP), customer satisfaction and brand loyalty in the online banking industry. International Journal of Bank Marketing, 35(3), 1-42.

  • Parasuraman, A., Zeithaml, V. A., & Malhotra, A. (2005). ES-QUAL a multiple-item scale for assessing electronic service quality. Journal of Service Research, 7(3), 213-233.

  • Ramanathan, R. (2011). An empirical analysis on the influence of risk on relationship between handling of product returns and customer loyalty in Internet banking. International Journal of Production Economics, 130, 255-261.

  • Ramseook-Munhurrun, P., & Naidoo, P. (2011). Customers’ perspectives of service quality in internet banking. Services Marketing Quarterly, 32(4), 247-264.

  • Ranaweera, C., & Prabhu, J. (2003). The influence of satisfaction, trust and switching barriers on customer retention in a continuous purchasing setting. International Journal of Service Industry Management, 14(4), 374-395.

  • Reichheld, F. (1995). Loyalty and the renaissance of marketing. Marketing Management, (4), 10-21.

  • Reichheld, F. F., & Schefter, P. (2000). E-loyalty: your secret weapon on the web. Harvard Business Review, 78(4), 105-13.

  • Ribbinik, D., Reil. A. C. R. V., & Liljander, V. (2004). Comfort your online customer: quality, trust and loyalty on the internet. Managing Service Quality, 14(6), 446-456.

  • Rust, R. T., & Zahorik, A. J. (1993). Customer satisfaction, customer retention, and market share. Journal of Retailing, 69(2), 193-215.

  • Safa, N. S., & Ismail. M. A. (2014). Trust, satisfaction and loyalty formation in electronic commerce. Journal of Industrial and Intelligent Information, 2(3).

  • Salehnia, M., Saki, M., Eshaghi, A., & Salehnia, N. (2014). A model of e-loyalty and word of mouth on e-trust in e-banking services. New Marketing Research Journal, 101-114.

  • Santaos, J. (2003). E-Service quality: A model of virtual service quality dimensions. Managing Service Quality, 13(3), 233-246.

  • Sharifi, S. S., & Esfidani, M. R. (2014). The impacts of relationship marketing on cognitive dissonance, satisfaction, and loyalty: The mediating role of trust and cognitive dissonance. International Journal of Retail & Distribution Management, 42(6), 553-575.

  • Sheikh, S. M., & Basti, M. (2015). Customer satisfaction in business to consumer (B2C) Internet banking: A comparative study of Turkey and Pakistan. Eurasian Journal of Business and Economics, 8(16), 73-100.

  • Singh, J., & Kaur, P. (2013). Customers’ attitude towards technology based services provided by select Indian banks: Empirical analysis. International Journal of Commerce and Management, 23(1), 56-68.

  • Spake, D. F., & Megehee, C. M. (2010). Consumer sociability and service provider expertise influence on service relationship success. Journal of Services Marketing, 24(4), 314-324.

  • Srinivasan, S. S., Anderson, R., & Ponnavolu, K. (2002). Customer loyalty in Internet banking: An exploration of its antecedents and consequences. Journal of Retailing, 78, 41-50.

  • Thakur, S., & Gopal, R. (2013). A study of factors affecting online shopping behavior of consumers. International Journal of Scientific and Research Publications (IJSRP), 3(6).

  • Thakur, S., & Aurora, R. (2015). Consumer perception: A study on e-marketing. International Journal of Recent Research Aspects, 2(2), 256-262.

  • Zeithaml, V. A., Parasuraman, A., & Malhotra, A. (2002). Service quality delivery through web sites: A critical review of extant knowledge. Journal of the Academy of Marketing Science, 30(4), 362-375.


Abstract Views: 378

PDF Views: 0




  • Does Service Quality Matters in the Context of Internet Banking? A Perceptual Analysis of India’s Internet Banking Customer’s Perception Regarding Service Quality, Trust, Satisfaction and Loyalty

Abstract Views: 378  |  PDF Views: 0

Authors

Khushdil Chhabra
Akal University, Talwandi Sabo, Bathinda, Punjab, India

Abstract


Purpose: The purpose of this paper is to explore the various Internet banking service quality factors and how these certain antecedents influencing the customer’s trust, satisfaction and loyalty.

Research Methodology: A total of 200 questionnaires were distributed among B2C Internet banking customers in India and 133 were returned resulting 66.5% response rate. The implication of Internet banking service quality on customer’s trust, satisfaction and loyalty was examined. The study’s conceptual model and hypothesis were tested using SPSS19.

Findings: The results proved that the all four antecedents of Internet banking service quality are distinct construct. They all have appropriate reliability and each construct influences online customers trust, their satisfaction level and help in building a loyal customer base. The efficiency of banking website is important construct of Internet banking service quality. The study confirms that the impact of e-satisfaction is more on e-loyalty than e-trust and e-satisfaction drives e-trust also.

Research Implication

Limitation-The sample size is not large enough, so the results should be interpreted with caution as regards to generalization of research finding of Indian consumer as a whole because sample is collected from some part of Punjab and Chandigarh.

Future Work-Future research needs to focus on a larger cross section of internet users and more diversified random samples to verify findings of current study. Focus can be made regarding the comparative studies with other states or other developed / developing countries in order to find out whether effect of individual service quality factor influencing adoption of Internet banking in competitive mix may be more/less in other markets, and whether effect of customer satisfaction and trust on loyalty may be more or less. Moreover, research could be enhanced by expanding current model and cultural factors could be investigated to add further depth as India, a multi-cultural country.

Practical Implication: This paper can help in fostering growth of Indian online banking in the future as these can be used as guidelines for financial service sector companies who want to enter into click-to-click in Indian market or want to have a long lasting customer relationship. Banks should focus their efforts on website service quality which will help in long lasting relation with the customer. This area needs more attention from banks / financial service sector, so that required added facilities can be attached to website for having competitive advantage.

Originality: This is the first time that such an exhaustive study has been carried out based on Punjab and Chandigarh bank customers. It gives a perspective on how certain Internet banking service quality affect customer’s satisfaction, trust and loyalty and to check whether e-satisfaction drives e-trust.


Keywords


Internet Banking, Satisfaction, Loyalty, Service Quality.

References