Customer Satisfaction and Customer Loyalty in E-Banking in India: The Intricacies of Relationship

Abstract

This study has been focused on finding the key determinants of customer loyalty and customer satisfaction in e-banking. The key factors of Customer loyalty are: customer retention; Security and Virtual Banking; and Technology invasion. Customer Retention emerges as an important factor influencing customer Loyalty with highest Eigen value and it explains maximum variation. This is followed by Security and Virtual Banking; and Technology invasion. Customer satisfaction is comprised of ten items. The study moves further to determine the relationship between the two. Customer Satisfaction is the dependent variable. Customer loyalty is associated positively with Confidence, Technology Adoption, Technical Expertise of staff, Personal Services, Account information, Channel Activity and Ease of Use from the construct of customer satisfaction. The model explains 85.8 percent of variation. Thus, a satisfied online customer can be retained by enhancing customer satisfaction.