Internet banking service quality and its implication on e-customer satisfaction and e-customer loyalty

The purpose of this paper is to examine the internet banking service quality and its implication on e-customer satisfaction and e-customer loyalty.

A total of 1,000 questionnaires were distributed for internet banking customers and 520 were returned (resulting 52 percentage of response rate).

The results confirmed that the all four dimensions (personal need, site organization, user friendliness, and efficiency of website) are distinct constructs. The results also indicated that internet banking service quality consisting of four dimensions has appropriate reliability and each dimensions has a positive significant relationship with internet banking service quality. The efficiency of banking website is the important aspect of internet banking service quality. The finding found that the relationship between internet banking service quality, e-customer satisfaction and e-customer loyalty are significant.

The results show that the higher level of internet banking service quality significantly impacts to e-customer satisfaction and consequently leads to e-customer loyalty and a lower intention to leave the relationship with bank.

This study proposes a model to understand the effect of internet banking service quality on e-customer satisfaction and e-customer loyalty in developing country. The constructs truly reflect the dynamism of customers’ banking relationship and a better understanding the attitude on internet banking will help the bankers in implementing more effective marketing strategies.