E-Service Quality and Customer Loyalty in Deposit Money Banks in Nigeria

Osagie Leslie Uwabor ,Geraldine Ugwuonah

doi:10.7176/ejbm/12-21-04

Abstract

The study examined Electronic Service Quality and Customer Loyalty in Deposit Money Banks in Nigeria. Its aim was to assess the level of relationship between e-service quality and customer loyalty of deposit money banks in Nigeria. In line with the objective of the study, three null hypotheses were formulated to guide the research. The theoretical foundation of the study was based on resource base and sustainable theories. The study adopted quasi-experimental research design. The population size was drawn from the customer of quoted deposit money banks with international authorization in Nigeria. A sample size of 411 customers was obtained using Krejcie and Morgan formula. A probability simple random sampling technique was further utilized in picking the respondents. A questionnaire of five point likert scale was used in data collection. Frequency, percentages, bar and pie charts were used in analyzing both the demographic data of the respondents, mean and standard deviation to answer research questions, while Kendall tau_b correlation coefficient was employed in testing the hypotheses formulated for the study. All the null hypotheses were rejected. The research therefore revealed that; a significant relationship exist between interactivity and customer loyalty of deposit money banks in Nigeria, a significant relationship exist between customer support and customer loyalty of deposit money banks in Nigeria, as well that there is a significant influence of customer technology adoption on the relationship between e-service quality and customer loyalty. It was concluded that, quality of e-service have help to improved customer loyalty in deposit money banks. It was therefore recommended amongst others that, deposit money banks should develop their websites by making it more interactive, online banking should be made easier for customers to make use of, and that more awareness should be given to customers on the need for e-banking. Keywords: Electronic, Service, Quality, Customer, Loyalty, Deposit, Money, Bank DOI: 10.7176/EJBM/12-21-04 Publication date: July 31 st 2020

Highlights

It is believed that the goal of every organisation is to meet the needs and requirements of its stakeholders
This study focuses on determining the relationship between e-service quality and customer loyalty of deposit money banks in Nigeria
Research Hypotheses Derived for the study are the following null hypotheses; Ho1: There is no significant relationship between interactivity and problem tolerance in deposit money banks in Nigeria Ho2: There is no significant relationship between customer support and problem tolerance in deposit money banks in Nigeria Ho3: There is no significant influence of customer technology adoption on the relationship between e-service quality and customer loyalty in deposit money banks in Nigeria

Summary

Introduction

It is believed that the goal of every organisation is to meet the needs and requirements of its stakeholders. Meeting the needs and the requirements of the stakeholders will ensure the survival of the organisation and allow it to flourish. Customers are presumed to be one of the most critical stakeholders in any organization because, without them, organizations are not likely to succeed. Knowledge of consumer behaviour will go a long way in ensuring effective marketing policies towards the interest of customers which will eventually facilitate positive customer attitude towards the organisations. As a result of financial sector liberalisation in Nigeria in the 1980s, the banking sector experienced a boom. Low entry requirements by the regulatory authority and the high premiums earned through foreign exchange business led to the quick entry by new players into the lucrative banking industry. Between the period of 1985 and 1993, the number of licensed banks rose astronomically from 41 to 120 (Central Bank of Nigeria, 1995), leading to the increase in the sector’s contribution to GDP and employment.it can be argued that banks in Nigeria contribute a significant percentage of the country’s GDP in the recent past considering that banks are important constituents of the industry (Adeoye, 2007)

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