Banking Service Quality Dimensions Research Articles

The Impact of Digital Service Quality Dimensions on Customer Satisfaction and Customer Loyalty of Digital Banking in Sri Lanka

Digital banking is one of the major services introduced by the banking sector recently to improve the satisfaction level and the loyalty of the customers by providing more efficient and comfortable services. However, sufficient evidence is not available on whether the digital banking quality dimensions improve customer satisfaction and loyalty. Therefore, this study attempted to explore how digital banking service quality dimensions affect customer satisfaction and loyalty. The study was positivistic, and a deductive approach was deployed. Moreover, a multi-stage systematic random sampling technique was used as the sampling technique. The data were collected from the 300 customers who are using digital banking services (Sampath -Vishva digital banking service) in Sampath Bank, Galle Branch. Data were collected by conducting face-to- face interviews using a structured questionnaire and analyzed using SPSS software. Results revealed that digital banking quality factors such as tangibility, responsiveness, privacy, and system availability are the factors that most affected the satisfaction level of the customers who are using digital banking. Accordingly, it was concluded that customer satisfaction is needed to create customer loyalty. Moreover, it was concluded that digital quality dimension cannot directly impact on customer loyalty. Empirical evidence helped to understand the importance of service quality dimensions of digital banking. These findings will help policy makers and financial institutions to develop quality dimensions to improve customer satisfaction and to expand customer retention in the banking sector.

Online Banking Service Practices and Its Impact on E-Customer Satisfaction and E-Customer Loyalty in Developing Country of South Asia-Nepal

The aim of this paper is to investigate the association and impact between online banking service practices on e-customer satisfaction, and e-customer loyalty. In addition, it aims to analyze mediating role of e-satisfaction to online banking service practices and e-loyalty. The research followed the E-S-QUAL model to measure the online banking service quality (OBSQL) by five dimensions: e-customer service, site of the organization, website efficiency, user-friendliness, security, and privacy. It is based on quantitative research approach with a structured questionnaire through primary data collection by stratified random sampling. Out of 475 questionnaires distributed, 384 usable questionnaires were used, and SPSS and AMOS were used to analyze. An exploratory factor analysis was used to confirm the online banking service quality dimensions and structural equation modeling was employed to estimate the parameters and structure. The result explained that the efficiency of the website and e-customer service were highly influential dimensions of online banking service practices, followed by user-friendliness, security and privacy, and the organization’s site. E-customer satisfaction significantly influences e-customer loyalty, and e-satisfaction mediates the association between online banking services and e-customer loyalty, which is a prime concern to bankers, users, and policymakers for continuous development. This research presents a model to recognize the quality of online banking services that affects electronic customer loyalty and satisfaction in developing countries of South Asia.

Exploring mobile banking service quality dimensions in Pakistan: a text mining approach

PurposeCustomer reviews of mobile banking (m-banking) apps contain the most direct and first-hand accounts of customer experiences with m-banking. However, surprisingly little effort has been made to understand m-banking service quality using these reviews. Therefore, this study aims to discover m-banking service quality dimensions from customers' reviews of the m-banking apps through a text mining approach.Design/methodology/approachReviews of m-banking apps of 24 banks operating in Pakistan were scraped from Google Play Store. Latent Dirichlet allocation (LDA) method was applied to discover the dimensions of m-banking service quality from 24,529 positive and 29,569 negative useable reviews.FindingsDifferent dimensions of m-banking service quality are discussed in positive and negative reviews. Positive reviews focus on security, convenience, ease of use, continuous improvement, usefulness and app attributes, whereas negative reviews discuss system availability, responsiveness, faulty updates, login problems and reliability.Research limitations/implicationsThe results are based only on customer reviews in one country and generalization may not be possible. Moreover, due to the unavailability of demographic information about reviewers, the effect of demographic characteristics on users' perceptions of m-banking quality could not be determined.Practical implicationsThe study provides managers with useful insights to improve the service experience of m-banking customers. The study also demonstrates how managers can employ text analytical techniques to assess and improve the quality of m-banking services.Originality/valueIn addition to enriching the understanding of m-banking quality based on direct and first-hand user experiences, the current study also provides initial evidence for the two-factor structure of m-banking service quality.

Perceived Service Quality and Customer Satisfaction in Nepalese Banking Industry

The main purpose of this study was to examine the relationship between banking service quality dimensions and customer satisfaction in Nepalese banking industry. Three commercial banks operating in Kailali district (Rastriya Banijya Bank, Nabil Bank and Global IME bank) were taken as sample and 327 depositor customers of these banks were surveyed using structured five point Likert scale questionnaire. Data was collected via online and field survey by visiting the customers at related banks, business organizations and government and non government offices of Kailali. SPSS version 20, Pearson’s correlation and multiple regression analysis have been used to analyze the data. The findings of this study revealed that there is positive relationship between service quality and customer satisfaction. All the service quality dimensions have statistically significant positive impact on customer satisfaction except tangibility. It means higher service quality helps increase customer satisfaction. The results of this study will help bank mangers to focus on their customer’s satisfaction in order to compete favorably in banking Industry. Future researchers can conduct their study focusing on mediating effect of customer satisfaction in service quality and customer loyalty. Effect of demographic variables on satisfaction is also unanswered in this study so, further study can be done including moderating effect of demographic variables.

Electronic Banking Service Quality: Perception of Customers in the Greater Accra Region of Ghana

The purpose of this study is to examine the impact of electronic banking service quality (SQ) on customer satisfaction (CS) and customer loyalty (CL). It also sought to compare differences between SQ delivery of domestic and foreign origin banks operating in the Greater Accra Region of Ghana. Structural equation modeling (SEM) was employed to investigate the relationships between the dimensions of electronic banking SQ, CS and CL. In addition, the Wilcoxon-Mann-Whitney test was also conducted to establish the differences in electronic banking SQ between local banks and foreign banks. The results show that, all four dimensions of SQ, namely convenience, ease of use, accessibility, and affordability were found to be significant positive drivers of CS. The study also found that CS fully mediates the relationship between all four electronic banking SQ dimensions and CL. Additionally, the study reports that on average foreign origin banks deliver better electronic banking SQ to their customers than domestic banks. Domestic banks should invest more in improving electronic banking SQ to drive CS, CL and ultimately firm performance. The findings of this study reinforce literature on the positive influence of SQ on CS and CL.

Mobile banking service quality: a new avenue for customer value co-creation

PurposeThis paper attempts to investigate the potential effect of mobile banking (m-banking) service quality dimensions (ease of use, usefulness, security/privacy and enjoyment) on customers’ value co-creation intention (CVCCI) in the banking sector.Design/methodology/approachA questionnaire was administered with a sample of 301 respondents from Egypt. Mediation and moderation analyses were performed to explore the role of m-banking service quality, attitude toward using m-banking (ATT-m-banking) and bank trust in shaping CVCCI.FindingsThe empirical evidence confirms the potential role of m-banking service quality dimensions, the ATT-m-banking, and customer trust in developing CVCCI. In addition, the mediation effect of ATT-m-banking in the m-banking service quality dimensions and CVCCI link was demonstrated. Interestingly, trust was not found to have a moderating effect between the ATT-m-banking and CVCCI.Practical implicationsOutcomes of the study will benefit bank managers to allocate resources when developing an m-banking platform, which helps in effectively promoting value co-creation in the banking sector.Originality/valueThis paper is a pioneering study to move the m-banking literature forward beyond the extensively studied m-banking adoption by exploring a longer-term outcome of customer engagement with m-banking, which is CVCCI.

The effect of the internet banking service quality on customer satisfaction (case study: Refah bank in Tehran)

Along with emergence of the electronic banking services, its quality as a known competitive advantage has had direct impact on customer satisfaction. This study aimed at measuring the impact of the internet banking service quality dimensions on customer satisfaction in the Refah bank of Tehran. Hypotheses investigated the effect of features, functionality and beauty of the site, reliability, responsiveness, performance, efficiency, privacy, information security, system availability, ease of use, customers' openness towards green technology and services of internet banking on satisfaction of the bank' customers. Statistical population of the study was all customers of Refah bank branches in Tehran and 400 people were selected as sample that a standard questionnaire including 58 questions was distributed among them. PLS Smart structural equation modelling software was used for testing hypotheses. Results confirmed positive effect of eleven dimensions of the electronic banking service quality on customer satisfaction. Meanwhile performance (fulfilment) dimension had the greatest impact on the bank customers' satisfaction.

Service Quality of Mobile Banking Services in ICICI Bank Limited

Purpose: Mobile banking is the latest and most innovative service offered by Banks. The purpose of the study is to investigate the determinants of service quality of mobile banking services in ICICI. Methodology: This study was conducted by using empirical research and Cluster cum Simple random sampling method has been adopted for a sample size of 100 respondents using mobile banking services in ICICI bank Limited. Findings: 35 percent of the respondents are using the SMS mode of mobile banking services. The dimensions of service quality factors of mobile banking services maintained by ICICI Bank Ltd are Convenience, Responsiveness, Security, Accessibility, Assurance, Knowing the customer and efficiency mobile banking services. The factors that satisfy the customers’ level towards mobile banking services offered by ICICI Bank Ltd. are banking activities, banking products and other services. The reasons for using mobile banking services are Convenient services, Time-saving and quick service. Originality/Values: This paper shows that the mobile banking service quality dimensions are an important factor to satisfy the customers. The outcomes of this study enhance the knowledge on the performance of ICICI bank as well as customer satisfaction, which are invaluable to all the bank managers and industry players in improving their services.

تقييم أبعاد جودة الخدمة البنكية وأثرها على رضا الزبائن : دراسة حالة وكالة بنك BADR بأم البواقي - 324 = Evaluation of Banking Service Quality Dimensions and Its Impact on Customer Satisfaction : Case Study of BADR Bank Agency in Oum-El-Bouaghi - 324

الخدمة البنكية | جودة الخدمة البنكية | رضا الزبائن | أبعاد جودة الخدمة البنكية | التوقعات والإدراكات | مقياس Servqual | Service Quality | Banking Service Quality | Customers Satisfaction | Banking Service Quality Dimensions | Expectations and Perceptions | SERVQUAL Scale

MODIFIED SERVQUAL MODEL AND EFFECTS OF CUSTOMER ATTITUDE AND TECHNOLOGY ON CUSTOMER SATISFACTION IN BANKING INDUSTRY: MEDIATION, MODERATION AND CONDITIONAL PROCESS ANALYSIS

Banks are very important financial services sector, and in banking sector there is an intense competition amongst the local and foreign banks throughout the world. The objective of this research is to analyse the effects of perceived value and customer trust, and role of technology in banking service qualities and customers’ satisfaction in Pakistani context. For this purpose we employed modified SERVQUAL model with four dimensions such as empathy, competence, reliability, and online service. An adapted questionnaire was used to carry out this survey research, and collected 830 responses from the customers of Pakistani banking industry. We used factor analysis, confirmatory factor analysis, and bootstrapping methods to carry out this research. The results of the study demonstrated that our four-dimensional model of modified SERVQUAL has a significant impact on overall customer satisfaction. It is further concluded from the bootstrapping method that modified SERVQUAL dimensions and customer satisfaction are positively mediated by the perceived value and trust. Finally, it is also concluded that the implementation of technology serves as moderating variable in the banking sector. The outcomes of this research are beneficial to the senior management of banking sector in order to implement the effective and customised online banking structure to gain competitive advantages, and provide vibrant online banking services that enhance the standard and ease of services to the customers and earn their confidence. The originality and novelty of this research provide a significant contribution in the application of SERVQUAL model specifically for the banking service quality dimensions and customer satisfaction in marketing research.

Mobile banking service quality and customer relationships

PurposeThe purpose of this paper is to investigate the multidimensional concept of mobile banking service quality (security/privacy, practicity, design/aesthetics, enjoyment and sociality) and the impact of the latter on the quality of the relationship (commitment, trust and satisfaction) between consumers and their primary financial institution.Design/methodology/approachAn online survey was conducted using a sample of 375 respondents, all owners of a mobile device and all accustomed to conducting banking activities on mobile platforms. Results were analyzed using structural modeling techniques (EQS 6.1).FindingsFindings confirm that trust significantly and positively impacts commitment/satisfaction. Mobile banking service quality dimensions also influence trust and commitment/satisfaction. Trust is associated with security/privacy and practicity (regarded as utilitarian factors), while commitment/satisfaction is driven by enjoyment and sociality (dimensions more hedonic by nature). No link is found between interface design and either trust or commitment/satisfaction.Originality/valueThis study contributes to bank marketing theory since it is the first to demonstrate how key mobile banking service quality dimensions drive customer perceptions of relationship quality. In doing so, this research extends beyond mobile adoption (short term) by addressing customer engagement with financial institutions and issues relating to relationship quality (long term). Regarding managerial implications, findings signal to marketers in the financial services industry the importance of not underestimating the power of hedonic factors (sociality and enjoyment) when developing mobile platforms. These dimensions are often overlooked in the banking industry, a sector in which consumers are believed to be mostly driven by utilitarian motives.

The Competitiveness Creation Strategy of Islamic Banking

Objective - The development of Islamic banks in Indonesia requires a new strategy. The size of the population of Indonesia is a potential market for Islamic banks to target religious and non-religious customers and implement quality innovation to create value-based services to support the competitiveness of regional economies. This may improve the standard and quality of living. Specifically, this study investigated the influence of Islamic banking service quality dimensions to consumer satisfaction, word-of-mouth communication and loyalty. Methodology/Technique - This study was conducted in Banjarmasin, South Kalimantan, which is an Indonesian province that has a fairly a rapid rate of development of Islamic banking. The study focused on 191 people. Data collection was done by observation and interviews using questionnaires. Findings - Using Partial Least Squares, the resultsdemonstrates the effects of variable compliance, empathy, and value proposition quality on overall satisfaction. This showed that overall satisfaction influences word-of-mouth communication and loyalty. This indicates that both the religious market consumers and the floating market consumers desire the establishment of a strong emotional bond between the Islamic bank, customers and shareholders that are developed together in the face of business risks and share profits fairly and honestly, in accordance with the principles of Islamic law. Furthermore, they want employees to be more empathetic and respond individually to customers. Novelty - The study suggest that a strategy be created in relation to competitiveness in Islamic banking in Banjarmasin to improve the quality of service-based value, and to increase the cultivation of religious customers as well as penetrating the floating market segment. Type of Paper - Empirical Keywords: Carter-Item; Floating-Based Market; Islamic Bank; Religious-Based Market; Servqual.

The Effect of Service Quality Dimensions on Customers’ Loyalty through Customer Satisfaction in Jordanian Islamic Bank

<p>The goal of this paper is to investigate the effect of banking Service Quality Dimensions on customers’ satisfaction, and customers’ loyalty. The dimensions include tangibility, reliability, empathy, responsiveness, and assurance. The researcher used a questionnaire survey to elicit data from the participants of the study. The sample included 250 questionnaires. They were distributed over a number of Islamic Bank customers in Jordan, particularly in the capital city “Amman”. The results of the study showed that there is a positive effect of Tangibility, Reliability, Empathy, Responsiveness, Assurance, on customer satisfaction toward customers’ loyalty. This has confirmed the Hypothesis of the study (H1, H2, H3, H4, and H6) in terms of being significantly and positively related to customers’ satisfaction and loyalty. On the other hand, one hypothesis is insignificant impact which is H5.</p>

A THEORITICAL EFFECT TEST OF THE BANKING SERVICE QUALITY DIMENSION ON CUSTOMER SATISFACTION

This study aims to test the effects of Banking Service Quality (BSQ) dimensions, namely Effectiveness and Assurance, Access, Price, Tangible, Service Portfolio, and Reliability, on customer satisfaction. The study is a confirmatory research using primary data. The study population is the customers of PT. Bank Rakyat Indonesia (BRI) (ltd.) branch of Jember, which includes the loan and the deposit customers. Convenience sampling technique is applied along with 105 customers as the samples. Multiple regression analysis with latent variables is used as the data analysis model. The result shows that four out of six Banking Service Quality dimensions consisting of: Effectiveness and Assurance, Access, Price, and Tangible give significant effects on customer satisfaction. Meanwhile, the other two, namely Service Portfolio, and Reliability do not show the same result. Next research should further expand the area of research is in East Java or even Indonesia in order to generalize the wider results of research.

Internet Banking Service Quality, Customer Satisfaction and Customer Loyalty

Service quality is one of the key factors in determining the success or failure of e-banking. To gain and sustain competitive advantages in the rival-driven e-banking market, it is thus crucial for e-banks to understand in-depth what customers perceive to be the key dimensions of service quality and what impacts the identified dimensions have on the customers' perceived overall service quality, satisfaction, and loyalty. This paper attempts, based on an extensive review of relevant literature, to provide a model integrating internet banking service quality dimensions, overall internet banking service quality, customer satisfaction and customer loyalty in the context of Vietnam - emerging as a new potential market. The findings of this study indicate that three dimensions of internet banking service quality namely online customer service quality, online information system quality and banking service product quality are found to be statistically significant in determining overall internet banking service quality. In addition, overall internet banking service quality has significant impact on customer satisfaction and in turn customer satisfaction has significant impact on customer loyalty. Implications and recommendations are discussed with the aim of improving internet banking services, customer satisfaction and customer loyalty.

Evaluation and Prioritization of Internet Banking Service Quality: The Case of Egypt

Changes in technology made a paradigm shift in the banking industry. Technology itself created its world in the globe of human beings. Internet banking is a service that allows customers to perform a wide range of financial services through a banks website. With the rapid diffusion of the Internet, web-based banking has become an alternative channel to provide banking services and products. Due to the deepness of technology in the service sector, there is a shift from the traditional service quality to electronic service quality (ESQ) in order to fit the Internet banking strategy. The aim of the paper is to rank and prioritize the Internet Banking Service Quality dimensions according to customers relevant importance from both bank sectors namely, private and public banks using Analytic Hierarchy Process (AHP) model, which is a structured technique for organizing and analyzing complex decisions. AHP has been seen as a high potential decision support tool in banking industry.

Service Quality Dimensions Within Technology-Based Banking Services

Technology-based banking services (TBBS) are quickly expanding and provide cost reductions per transaction, given increasing labor costs. However, TBBS can be very costly if not introduced correctly. It is critical to have a clear understanding regarding how to best implement, manage, and promote TBBS for success. The purpose of this quantitative correlational descriptive research study is to determine if a set of technology-based banking service quality dimensions have an association with customer satisfaction and behavioral intentions toward TBBS in Yemen. Findings revealed evidence that seven service quality dimensions—functionality, enjoyment, security, assurance, design, convenience, and customization—suggested by Lin and Hsieh (2006) were significantly associated with customer satisfaction and behavioral intentions toward TBBS in Yemen. The findings contain descriptive and inferential statistical analysis to describe service quality dimensions and predict customer perceptions of TBBS. The study includes a recommendation that bank leaders focus on service enjoyment and customization to enhance customers’ experience using TBBS. Additional research venues are discussed to improve self-service technologies within the banking industry in Yemen.

Effect Of Demographic Variables On Customer Perceived Internet Banking Service Quality: Empirical Evidence From India

This study attempts to analyse the effect of demographic variables on customer perceptions of Internet banking service quality offered by banks in India. Survey of 1350 Internet banking customers was conducted in the National Capital Region (NCR) of Delhi, India. The data were collected with the help of a self-administered structured questionnaire. 22 items using focus group discussions were developed from an initial pool of 60 Internet banking service quality items. Respondents were asked to rate each attribute on a 5-point Likert scale. Six fixed-alternative questions regarding respondent’s gender, age, occupation, education level and income were included in the survey questionnaire. Five dimensions of Internet banking service quality-Security/Privacy, Reliability, Efficiency, Responsiveness and Site Aesthetics were extracted through exploratory factor analysis. Performance of banks on these five Internet banking service quality dimensions was assessed using descriptive analysis as well as hypotheses testing. Gender wise males rated their banks performance higher than females on all the dimensions except Reliability. Youngsters (18-25 years) found their banks most secure and efficient. Occupation wise, students and housewives have given highest ratings to their Internet banking experience. Post graduates and above qualified customers find Internet banking to be most reliable and responsive. Customers in the highest income group (above Rs. 10 lacs) have rated their banks’ performance highest on all dimensions. However, middle income group (Rs. 2-5 lacs) customers found Internet banking services to be most unsecure and falling short on maintaining their privacy. Results of independent samples t-test revealed a significant difference between male and female customers’ perceptions on Security/privacy and Responsiveness dimensions. MANOVA results suggest a significant difference in customers’ perceptions by occupation and income groups whereas no significant difference was found on the bases of age and education level.

An examination of the relationship between service quality perception and customer satisfaction

PurposeThis study attempts to examine the relationship between service quality perception and customers' satisfaction in Malaysian Islamic banking using the SEM approach.Design/methodology/approachThis model starts with SERVQUAL measurement scales consisting of six dimensional structures: tangibles, reliability, responsiveness, assurance, and empathy, and plus the compliance dimensions to measure Malaysian Islamic banking service quality. Respondents are the customers (Muslim and non‐Muslim) who visit the bank counters. They must have an account with one of the full‐fledged Islamic banking and dual‐banking systems.FindingsThe results showed that the proportion of Malaysian Muslims' awareness of the Islamic banking products and services were high compared to non‐Muslim customers. The majority of the Islamic banking customers were satisfied with the overall service quality provided by their banks. The findings suggest that the standard model of Islamic banking service quality dimensions should consist of the six dimensions and good determinants of satisfaction. The relationship between service quality and customer satisfaction was significant.Research limitations/implicationsFurther research should be considered in order to gather more information regarding service quality and customer satisfaction dimensions in the context of Malaysian Islamic banking industry.Practical implicationsThe six dimensions of SERVQUAL represent a valid instrument to measure service quality in Malaysian Islamic banking. Providing financial counseling to attract Muslim customers to use more Islamic banking products and services is critical, where 60 percent of the Malaysian population is Muslim. There is a potential target market for Islamic banking that needs be concerned.Originality/valueThis research is important in line with the obvious cross‐cultural and religious differences between these two key customer segments; Muslims and non‐Muslims. In the Malaysian context, there is a strategic dimension that needs to be understood.

Managing service quality in banks: customers’ gender effects

This paper discusses the service quality of Greek banks on the basis of their customers’ perceptions, and analyses how gender differences affect customers’ perceptions of service quality dimensions such as effectiveness and assurance, access, price, tangibles, service portfolio, and reliability. The results of an empirical study of 1,260 customers of Greek banks generally support the hypothesis that gender affects service quality perceptions and the relative importance attached to various banking service quality dimensions. This paper provides important information for bank managers to use in developing operational, human resource, and marketing strategies, and in targeting those strategies in terms of the gender differences in quality perceptions among their customers.