Customer Satisfaction

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Customer satisfaction with online banking services

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Customer satisfaction with online banking services
M.Tayyeb Masood
Waqar Ahmed
Author, Faculty of Management Sciences
Muhammad Ali Jinnah University, Pakistan
Abstract
The study seeks to discover, what will be the main factors in customer satisfaction of electronic banking services in Pakistan? This paper inspects and study the most important factors in e-banking services in the Pakistan and customer„s evaluation of the electronic banking services. Measurement model is validated in the light of Technology Acceptance Model (TAM) for customer satisfaction assessment in e-banking service quality. This paper provides a model with 08 factors (Independent variables) on the following dimensions: Efficiency, fulfillment, System availability, Privacy, Trust, Responsiveness, Contact and web site design. Data was gathered through a questionnaire from customers who are using online banking services. Key words: Electronic banking, Customer satisfaction, Customer service quality, Pakistan

Introduction
The quick extent of technology had made the internet the best channel to provide banking services to customers. Every bank is now considering internet services in its strategy plan to update the banks structure (Tooraj, 2010).

Now customer demands more accessibility to use services that traditional banking cannot offer (Yiu et al, 2007). Online banking is an alternative to visiting service outlets (HR-focus 2000). People use online services because of more convenience (Meuter, Ostrom, Roundtree & Bitner, 2000; Szymanski & Hise, 2000), flexibility and more control on the process (Bateson, 2000). For customers in online banking, it is very easy to compare of competing services (Santos, 2003).

In future online banking customer expectations will become higher as increased use of the Internet Mols (2000). In traditional online banking customers have direct contact with the employees but in online banking customers use only the online services Mols (2000). The quality of electronic banking is associated with lower costs, satisfaction, loyalty, and effectiveness (Seth, 2004).

Customer satisfaction with online banking services

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Pakistan banking sector has gone through remarkable technological changes and has invested huge amount of funds in development of online information systems, and has launched internet-based online banking to improve their operations and to reduce cost. These online banking systems are beneficial both for banks as well as for users. The primary purpose of this research is to analyze and extend knowledge regarding influential factors that affect users to accept online banking in the light of technology acceptance model TAM.

Literature Review
Online customers are very difficult to attract and tough to hold because it is relatively easy for customers to switch their online service providers (Srinivasan et al., 2002. It is very necessary for internet service providers to improve customer satisfaction (Buttle and Burton, 2002).

In this concern, online providers are alert of the links between the service quality and their customer satisfaction, which increase the customer loyalty (Cristobal et al., 2007; Fuentes-Blasco et al., 2010). Customer loyalty is defined in different ways, one way to define loyalty in behavioral terms. Adopting this approach, Buttle and Burton (2002) defined a loyal customer as a customer who continues to buy. Kotler (2003) described customer satisfaction/dissatisfaction as a person‟s feeling of pleasure/ displeasure. Customer satisfaction is achieved when online service providers understand their customer‟s needs and make effort to fulfill those needs (Harris and Harrington, 2000).

In the online situation, it has been stated that perceived e-service quality is clearly related with customer satisfaction, trust, and loyalty (Ribbink et al., 2004). In a similar mood, Cristobal et al. (2007) found that satisfaction with...
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