The rapid advancement in technology-based systems, especially those related to the Internet and World Wide Web, has led to fundamental changes in how banks interact with customers. These developments have propelled banks to be innovative and use alternative delivery channels such as electronic banking with a view to attract more customers, create value for customers, enhance customer satisfaction and ultimately obtain customer loyalty. Within the South African context, a gap in research was identified that dealt with the conceptualisation and measurement of electronic banking service quality. Furthermore, no single empirical or conceptual study could be found that put up the four constructs identified in this study that tested the causal relationships of these constructs. Against this backdrop, the study‘s principal objective was to develop and validate a measuring scale of electronic banking service quality for the South African banking sector. The study also sought to determine the causal relationships amongst the four constructs of the study, namely electronic banking service quality, customer value, customer satisfaction and customer loyalty.
To address these research objectives, the study applied a two-phase design in conducting the research in an effort of enhancing and maximising the outcome of this research endeavour. Phase I of this study comprised a literature review and focus group interviews (qualitative research). An extensive literature review was conducted as an inductive method to build the theoretical foundation of the study, generate the initial pool of items, and define and conceptualise the constructs. Using a deductive method, the focus group interviews were used to generate original items for the development of the scale. Phase II of the study comprised scale refinement and validation of the scale through various interactive statistical applications such as exploratory factor analysis (EFA) and structural equation modelling (SEM) (quantitative method).
Using an exploratory factor analysis, eight determinant dimensions were extracted that constitute electronic banking service quality (EBSQ). These dimensions in accordance of their importance are reliability, system availability, privacy and security, website aesthetics, ease of use, functionality, efficiency, and contact and responsiveness. The Pearson‘s correlation coefficient between each of the eight dimensions and EBSQ was above 0.6 at p<0.01 level of significance showing practical significance. Similarly, the Pearson‘s correlation coefficient among the four constructs, namely EBSQ, customer value, customer satisfaction and customer loyalty, revealed that there are evidence positive linear correlations among these constructs. T-test statistics and non-parametric correlations were computed to determine the influence of
demographic variables such as gender, age, education and income on the perceptions of customers of electronic banking service quality dimensions, electronic banking service quality as a whole, customer value, customer satisfaction and customer loyalty.
Employing comprehensive and best practice (inductive and deductive research methods), a measuring scale has been developed and validated for the South African banking sector (primary objective of this study). The purification and validation of the scale involved rigorous statistical methods including exploratory factor analysis followed by confirmatory factor analysis through structural equation modelling (SEM) to ensure the reliability, validity and robustness of the scale. Moreover, the study endeavoured to contribute to the theoretical conceptualisation of electronic banking service quality (EBSQ), which is a relatively new concept in South Africa, and indeed, globally. Eight dimensions of EBSQ have identified and operational definition provided for. The dimensions identified in this research can be used to better understand EBSQ, and to measure and improve service quality levels in the banking sector.
Ultimately, a model has been proposed providing South African banks with an instrument to measure, manage, and improve their electronic banking service quality. The model has established the building blocks of electronic banking service quality by identifying the main dimensions or attributes of electronic banking service quality that can be used to improve service quality levels. Furthermore, the study determined the causal relationships among four constructs, namely (I) electronic banking service quality (EBSQ), (II) customer value, (III) customer satisfaction and (IV) customer loyalty through regression path estimates (coefficients), mediation analysis and standardised regression weights. Understanding the intricate relationships among these constructs will definitely enhance the banks‘ approach to customer relationship management (CRM) in this digital era in their quest to provide quality services and devise appropriate customer service solutions.
In light of the findings of this research, several managerial implications and recommendations are offered. Amongst others, the research revealed that reliability, privacy and security are the top concerns customers have with regard to electronic banking. Therefore, it is recommended that banks invest in the robustness of the websites for banking transactions by using cutting-edge technology to protect their customers from illicit criminal activity, as security and trust are of crucial importance to customers when engaging in online transactions. The sample size (310) used in this research is consistent with previously developed and validated scales and sufficiently meets the requirements of sample adequacy for the study of this nature. Using the scale developed and validated in this study, future research endeavours are recommended to use a bigger sample size to test the robustness of this scale, and obtain more exact and organisation-specific customer perceptions of electronic banking services. It may be worthwhile
for future studies to consider developing a measuring instrument from a different perspective, that is, from other customer groups, namely internal customers (employees) of the banks. / PhD (Marketing Management)--North-West University, Vaal Triangle Campus, 2015.
| Identifer | oai:union.ndltd.org:NWUBOLOKA1/oai:dspace.nwu.ac.za:10394/16547 |
| Date | January 2015 |
| Creators | Redda, Ephrem Habtemichael |
| Source Sets | North-West University |
| Language | English |
| Detected Language | English |
| Type | Thesis |
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