Internet banking service quality and e-loyalty in Penang, Malaysia
Loading...
Date
2008
Authors
Yoke Leng, Teng
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Internet banking is gaining popularity in Malaysia. Currently there are 23 commercial
banks (local and foreign banks) operating in Malaysia that provide Internet banking services.
The Internet banking business competition is fierce and Internet banks could gain or lose
customers' loyalty by just a mouse click by customers. Customers' loyalty or recognised as Eloyalty
in this study, is very valuable to banks as it is a competitive advantage. Internet banks
generally will focus to build customer loyalty by providing good service to satisfy customers'.
need and want. Due to the unique business interactions of banks with customers are via web
site interaction, web site security and privacy are viewed as important service dimension by
Internet banking customers. Superior service quality, customer satisfaction or E-Satisfaction
in this context, will lead to E-Loyalty. The present study adapts the mediational model of
Caruana (2000) that links service quality toE-Loyalty viaE-Satisfaction and the moderating
role of E-Trust are proposed.
The service quality dimensions of traditional banking environment cannot be adapted
fully for Internet banking service quality. Thus, 3 commonly used e-quality dimensions of EScape,
image and reputation of Internet bank and continuous improvement were chosen in
addition to responsiveness, empathy (recognised and termed as customization in this study)
and assurance (recognized and termed as security and privacy in this study) measured in the
study of Caruana (2000). In this study, privacy and security, ease of use and image and
reputation of Internet bank were found significant to E-Loyalty. However, partial mediating
effect of E-Satisfaction was found on the relationship service quality dimension of privacy
and security and ease of use only. Direct relationship ofE-Trust and E-Loyalty was found in
this study. Lastly, the implications and suggestion for future research are provided.
Description
Keywords
Finance , Internet Banking