Customer Loyalty towards Internet Banking in Nigeria

Abstract

Abstract. Easy accessibility of information on banking activities has enabled customers to easily compare various bank products and thereby easily switch from one bank to another, resulting in diminishing customer loyalty. This results in retail banks continually working hard to make new innovations or improve their internet banking services in order to make their bank a better choice for the customer. Previous researches have shown that customer loyalty is essential for the survival and profitability of e-commerce. We investigate whether customers' trust, satisfaction, commitment, bank reputation, and the bank's website quality predict customer e-loyalty in a survey using structured questionnaire. Ordered logistic regression analysis was used to analyse the data. The results of the study revealed that bank reputation, satisfaction, trust, and commitment have a significant and positive impact on customer e-loyalty towards internet banking in Nigeria. However, website quality has a positive but insignificant influence on customer e-loyalty towards internet banking. The result further showed that reputation is an essential factor in building customer e-loyalty.

The Influence of the Quality of Internet Banking Services on Customer Loyalty

“…The discussion on the obtained outcomes with the results obtained by other authors led to the conclusion that in the analyzed cases the said authors obtained significant and statistically relevant values of coefficients, some of them are very high (Aishatu and Lim, 2017;Asgari et al, 2014). This confirms the influence of the quality of services on customer loyalty.…”

“…Whereas Hongcui (2008) proved that the particular dimensions of the quality of services directly influence the loyalty of the customers in the training branch. Similarly Aishatu and Lim (2017) proved that the factors shaping the quality of services directly influence the loyalty of the customers in the online banking.…”

“…Customer loyalty is said to be one of the ways to build a competitive advantage and important issue in e-banking debate to achieve higher profits (Aishatu and Lim, 2017).…”

“…They noticed that the authors whose works were analyzed, in the majority, they used the models with intervening variables (Asadpoor and Abolfazli, 2017;Suleiman et al, 2014;Asgari et al, 2014;Aghdaie et al, 2015;Amin, 2016). Only few researchers proved the existence of direct relationship between the quality of services and customer loyalty in the empirical studies (Hongcui, 2008;Aishatu and Lim, 2017;Zehir and Narcikara, 2016;Firdous, 2017).…”

“…By combining these two above mentioned terms, i.e., the quality of services and consumer loyalty, it has been proved, with the use of multidimensional exploratory techniques, that guarantee of the high level of quality in the analyzed area of the Internet banking services translates into the higher level of customer loyalty (Suleiman et al, 2012;Chocholakova et al, 2015;Asadpoor and Abolfazli, 2017;Asgari et al, 2014;Firdous, 2017;Aishatu and Lim, 2017). In this paper, the author's aim was to confirm the above observations and at the same time to contribute to the accumulation of knowledge in this particular field of study.…”