Development of e-service quality measure for internet-based financial institutions

Abstract

In the early stage of internet markets, internet-based financial institutions competed with traditional financial institutions by providing services at lower prices. However, today, more and more companies are participating in internet markets, nullifying the initial price advantage and resulting in low prices becoming a minimum qualification to compete in the market. Therefore, companies operating in internet markets need something else in order to attract customers. What becomes important for internet-based financial institutions is to provide high quality ‘service’. This study raises a research question: ‘how do customers evaluate the quality of e-services provided by internet-based financial institutions?’ This study reveals six valid and reliable dimensions measuring perceived e-service quality: Trust, Customised communications, Ease of use, Website content and functionality, Reliability and Speed of delivery. These dimensions are validated using confirmatory factor analysis and criterion-related validity.