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IBIMA Publishing Journal of Electronic Banking Systems http://www.ibimapublishing.com/journals/JEBS/jebs.html Vol. 2010 (2010), Article ID 592297, 21 pages DOI : 10.5171/2010.592297
Factors Affecting Customer Loyalty of Using Internet Banking in Malaysia
Beh Yin Yee and T.M. Faziharudean
Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur, Malaysia,
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Abstract Internet banking (IB) has become one of the widely used banking services among Malaysian retail banking customers in recent years. Despite its attractiveness, customer loyalty towards Internet banking website has become an issue due to stiff competition among the banks in Malaysia. As the development and validation of a customer loyalty model in Internet banking website context in Malaysia had not been addressed by past studies, this study attempts to develop a model based on the usage of Information System, with the purpose to investigate factors influencing customer loyalty towards Internet banking websites. A questionnaire survey was conducted with the sample consisting of Internet banking users in Malaysia. Factors that influence customer loyalty towards Internet banking website in Malaysia have been investigated and tested. The study also attempts to identify the most essential factors among those investigated: service quality, perceived value, trust, habit and reputation of the bank. Based on the findings, trust, habit and reputation are found to have a significant influence on customer loyalty towards individual Internet banking websites in Malaysia. As compared to trust or habit factors, reputation is the strongest influence. The results also indicated that service quality and perceived value are not significantly related to customer loyalty. Service quality is found to be an important factor in influencing the adoption of the technology, but did not have a significant influence in retention of customers.
Factors Affecting Customer Loyalty of Using Internet Banking in Malaysia
Beh Yin Yee and T.M. Faziharudean
Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur, Malaysia,
____________________________________________________________________
Abstract Internet banking (IB) has become one of the widely used banking services among Malaysian retail banking customers in recent years. Despite its attractiveness, customer loyalty towards Internet banking website has become an issue due to stiff competition among the banks in Malaysia. As the development and validation of a customer loyalty model in Internet banking website context in Malaysia had not been addressed by past studies, this study attempts to develop a model based on the usage of Information System, with the purpose to investigate factors influencing customer loyalty towards Internet banking websites. A questionnaire survey was conducted with the sample consisting of Internet banking users in Malaysia. Factors that influence customer loyalty towards Internet banking website in Malaysia have been investigated and tested. The study also attempts to identify the most essential factors among those investigated: service quality, perceived value, trust, habit and reputation of the bank. Based on the findings, trust, habit and reputation are found to have a significant influence on customer loyalty towards individual Internet banking websites in Malaysia. As compared to trust or habit factors, reputation is the strongest influence. The results also indicated that service quality and perceived value are not significantly related to customer loyalty. Service quality is found to be an important factor in influencing the adoption of the technology, but did not have a significant influence in retention of customers.