Academic journal article International Journal of Marketing Studies

The Evaluation of Effect Electronic Banking in Customer Satisfaction and Loyalty

Academic journal article International Journal of Marketing Studies

The Evaluation of Effect Electronic Banking in Customer Satisfaction and Loyalty

Article excerpt

Abstract

In order to understand customers' characteristics, banking management should create a good relationship with them. The goal of this research is evaluation of effect electronic banking and three dimensions comprise quality of system, quality of information and quality of servicein customer loyalty with regard to role of customer satisfaction among customers of mellat bank in Isfahan city in Iran. The population of the study comprises customers of mellat bank in Isfahan city that use of total electronic banking service, therefore the population of research is unlimited and uncounted. The instrument of data collection in this research is standard questionnaire. Number of 250 questionnaire distributed and totally 224 questionnaires were analyzed. Samples were also selected with method of available random. To analyze data and test hypotheses was used pls and Spss software. The results indicate that system quality has a positive and significant impact in customer satisfaction. On the other, results indicate that information quality has a positive and significant impact in customer satisfaction. Also, the effect of customer satisfaction in customer loyalty is confirmed.

Keywords: electronic banking, customer satisfaction, loyalty

1. Introduction

Today, banking industry is changing rapidly. With the development of international economy and tradeand competitiveness of the markets and competitors, the banks are also affected and the main power in this environment, technology, broke the geographical, legal and industrial barriers and created new products and services (Seyed Javadin & Yazdani, 2005, pp. 45-61). New forms of online communication offer a host of new and promising opportunities for consumer retention onthe World Wide Web, while at the same time intensifying rivalry (Vatanasombut et al., 2004). In particular, thisapplies to company-controlled communication, giving companies the ability to customize information with regard tothe individual needs of a particular customer and to optimize the customer's feedback opportunities (Kierzkowski et al., 1996). At the same time, companies also face completely new challenges arising from customer-controlledInternet communication, such as the growing importance of mark strength, economies of scale and size (Gallaugher, 1999).

The rapid progresses in technology seem to have more impact on changes in the banking industry than any other. Being the heart of the financial sector, the banking sector nowadays offers financial services not only within a county but also within the whole universe.

The banking industry has witnessed a quantum leap in technology during the last decade in its efforts to meet the ever growing customer demand. Banks claim that consumers demand more sophisticated products and services, and falling customer loyalty has increased pressure on the banks to satisfy their demand (Jayamaha, 2002).

Customer satisfaction is central to the marketing concept, with evidence of strategic links between satisfactions and service performance (Truch, 2006). Customer satisfaction is considered to act as an antecedent of loyalty and retention, arising out of direct prior experience (Wu & Wang, 2005). Congruent with the proposition that affective reactions influence attitude ,recent studies have demonstrated that satisfaction is an antecedent of electronic loyalty, with increased satisfaction leading to increased electronic loyalty (Balabanis et al., 2006). Loyal customers are not necessarily satisfied customers, but satisfied customers tend to be loyalcustomers (Fornell, 1992). Satisfying customers should accordingly be of extreme importance to electronic stores in their efforts to keep customers loyal. Customers who are satisfied with the electronic stores they currently use develop a positive attitude towards those electronic stores. Studies have found that customer satisfaction is anevaluation of service experience and is a key factor in retaining customers and improving customer loyalty and retention (Wong & Tong, 2012). …

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