Internet banking service quality, e-customer satisfaction and loyalty: the modified e-SERVQUAL model

Abstract

<jats:sec><jats:title content-type="abstract-subheading">Purpose</jats:title><jats:p>This study explores the service quality dimensions in Internet banking and their impact on e-customer’s satisfaction and e-customer’s loyalty. This study tries to inspect the structural association between Internet banking service quality, electronic customer satisfaction and electronic customer loyalty based on separate constructs.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Design/methodology/approach</jats:title><jats:p>In this present research, quantitative approach is applied. The data is gathered from 500 bank clients in Pakistan by using structured questionnaires, and the theoretical model is tested by partial least square structured equation modeling (PLS-SEM). Moreover, convergent validity and discriminant validity were assessed.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Findings</jats:title><jats:p>Results show that all the dimensions are found to have a positive and significant influence on customer satisfaction while customer’s satisfaction has a significant and positive impact on customer’s loyalty. Findings indicate that service quality plays a very important role in every society, as it has become the basis for how customers interpret online banking and, in the end, how it interacts and operates with online services.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Practical implications</jats:title><jats:p>This research adds up considerably to the literature of bank marketing, and it is also fruitful for the academicians since it demonstrates the way Internet banking service quality determinants predict e-satisfaction of clients which ultimately raises the e-loyalty of clients. This study is useful for those E-retailers and managers who want to grab e-retailing market.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Originality/value</jats:title><jats:p>This research suggests a model which ultimately enhances customer loyalty towards Internet banking service quality through customer satisfaction in Pakistan. It involves modified model of E-SERVQUAL (user friendliness, efficiency of websites, personal need, and site organization) which connects it to electronic customer satisfaction and electronic customer loyalty. Therefore, it will assist the Internet banking sector in building effective marketing tactics, establishing long lasting relationships with clients and acquiring the competitive edge in the market.</jats:p></jats:sec>

Motives of customers’ e-loyalty towards e-banking services: a study in Saudi Arabia

“…Particularly, in e-banking services, Ahanger (2011) and Casalo et al (2008) stated that banks must realise that customers strong satisfaction with e-services leads to a higher levels of e-loyalty. This positive association between e-satisfaction and e-loyalty has been confirmed by several other studies such as Al Dmour et al (2019), Alkhouli (2018), Anderson et al (1994), Ghane et al (2011), Nisar and Prabhakar (2017), Nugroho et al (2015), Raza et al (2020), and Wani and Mushtaq (2019). Based on this evidence, the following hypothesis is proposed.…”

E-loyalty:A Study on E-loyalty of Conventional Bank Customers in Banda Aceh City, Indonesia

“…The finding proves that customers will truly be loyal to banks that have internet banking service facilities. The finding is consistent with the results of a study conducted by Marafon et al (2018), Anouze and Alamro (2020), Raza et al, (2020). It means that when the e-loyalty of customers is at a high level, in the future they will have a strong commitment to remain bank customers which have internet banking facilities, they desire to increase the frequency of transactions through it and their unwillingness to become bank customers that do not provide e-services.…”

“…Internet banking provides various facilities to bank customers so that the customers can complete various transactions electronically wherever they are and whenever they want with low fees and a much shorter time than before the existence of the bank's internet facility (Yoon and Steege, 2013;Narayanasamy et al, 2011;Siyal at al., 2019;Raza et al, 2020). Through these various benefits and conveniences, internet banking plays an imperative role in decreasing fixed and variable costs for bank customers (Chen et al, 2012), while for banking institutions, by providing it banks can build and foster better relationships with their customers (Rod et al, 2009;Rod and Ashill, 2010;Siyal at al., 2019).…”

Customer loyalty to Islamic banks: Evidence from Indonesia

“…Perceived value mediates the relationship between service quality and customer loyalty (Hapsari et al, 2017). Raza et al (2020) find that online service quality increases customer loyalty to online banking services in Pakistan. Jiang et al (2015) observe that customer-perceived value partially mediates the relationship between e-service quality and customer loyalty in e-banking.…”