Internet-banking customer analysis based on perceptions of service quality in Taiwan

Abstract

All economic activities require monetary transactions, including those occurring online. The Internet is thus an essential medium for monetary transactions. Because Internet banking is highly profitable, competition among banks is fierce. However, customer satisfaction is crucial for building a profitable business model. Satisfied users tend to become loyal customers who adopt banking services that regularly contribute to bank profits. Therefore, how to provide services that users require is an important consideration when banks develop service products. Customer perceptions of good service quality are perceptions that improve customer satisfaction. Although service quality is important to users when selecting banking services, the effect of perceived service quality on customer adoption of Internet banking in Taiwan is rarely studied. This study identified three clusters of Internet banking customers based on customer perceptions of service quality in order to help banks develop service products. Each cluster was described in terms of demographics, consumer behaviour, perceived service quality, customer satisfaction, and customer loyalty.