THE INFLUENCE OF SERVICE QUALITY DIMENSIONS ON CUSTOMER SATISFACTION IN E-BANKING: EVIDENCE FROM BANKING SECTOR OF BANGLADESH

Abstract

Customer satisfaction measures how well the expectations of a customer concerning a product or service provided by a company have been met. Thus, customer satisfaction depends on several dimensions of service quality. Electronic banking or simply E-banking enables customers of a bank to conduct a range of financial transactions over the internet. E-banking services not only can create new competitive advantages, it can improve its relationships with customers. The purpose of this study was to examine the relationship between the dimensions of E-banking service quality and customer satisfaction to determine which dimension can potentially have the strongest influence on customer satisfaction. Five service quality dimensions; Dependability, Timeliness, Security & Privacy, Physical facilities and Customize service derived with the support of literature review have been selected as forecasters of customer satisfaction in E-banking. Research design of the study is quantitative. Data has been gathered through already tested questionnaire from 265 E-banking users as respondents from Bangladesh through convenient sampling. Correlation, ANOVA and Multiple Regression model has been used to determine the significance level of the variables for the customer satisfaction in e-banking. Results of the study have revealed that there is significant relationship between service quality dimensions and customer satisfaction. Through this study we can conclude that service quality in E-banking leads to satisfied customers and thus banks can gain competitive advantage by offering better-quality services to their customers in today’s emulous world. KEYWORDS: E-banking, Customer satisfaction, Service quality, Bangladeshi banking sector