Abstract
This chapter focuses on the issue of quality strategies for attaining customer loyalty in an e-service environment. It takes into consideration the key relationship between e-service quality and customer loyalty. A case of mobile banking service acted as the basis for the formulation of quality strategies for customer retention. This study was conducted by a survey with a sample size of 524 mobile banking users in the state of Punjab in India. The survey instrument utilized the E-S-QUAL, E-RecS-QUAL, and loyalty scales proposed in the earlier research studies. Furthermore, the data generated was analyzed by using the statistical multiple regression. Findings of this chapter give important implications to the delivery of e-service for mobile banking. It could help service providers to gain proper insights into the issue of managing the customers in a virtual environment.
TopIntroduction
In the last two decades, continuous changes in information and communication technology (ICT) have contributed towards the transformation of electronic commerce (e-commerce) into mobile commerce (m-commerce) and redefined the business operations. ICT involves the usage of technology in exchange of information and is generally considered as a starting point for both e-commerce and m-commerce. Increased implementation of ICT based applications in business has become an important trend (Rust, 2001). The transformation of e-commerce into m-commerce has been possible due to the fast growth in the field of wireless and mobile communication (Mohd & Osman, 2005). Greater popularity of mobile phones, personal digital assistants and other types of hand-held devices has contributed towards the m-commerce hype (Liang & Wei, 2004). M-commerce applications have gained popularity due to the unique feature of mobility offered by them. Different types of m-commerce applications include mobile banking, mobile shopping, mobile ticketing, mobile entertainment, mobile information services, mobile marketing and telematics services.
The present scenario depicts that due to the increased focus on electronic mode of business e-service quality has become a matter for concern as most of the businesses are going online. These businesses transformed from a traditional brick and mortar style to more refined and technology enabled e-business. Many of the service organizations have started distributing their services through electronic means (de Ruyter, Wetzels, & Kleijnen, 2001). Proper implementation of e-commerce based applications enables businesses to generate profits from technology-based exchange of goods and services (Magutu et al., 2011). In a similarity to the other sectors, the banking sector is not an exception to this e-commerce revolution. The electronic nature of loyalty in an e-banking system poses a great challenge to the banks in an online environment (Reichheld & Schefter, 2000). Loyal customers in an electronic environment are cost effective and help to lower the operating cost of organizations (van Riel, Liljander, & Jurriëns, 2001). There is an important role of electronic service (e-service) quality in building customer loyalty in case of financial institutions such as banks (Asgari, Ahmadi, Shamlou, Farokhi, & Farzin, 2014). Efficient delivery of service quality among e-services plays a crucial role in the success of banking system and helps the banks to sustain effectively in the competitive environment (Ariff, Leong, Norhayati, & Ahmad, 2012).
Key Terms in this Chapter
WAP-Based Banking: A WAP (wireless application protocol)-based communication, works on a mobile phone and helps to access m-banking service in a more secure way than SMS banking.
Mobile Web Banking: A special type of m-banking which works in a similarity with internet banking based on advanced web browsers on a mobile phone.
Personal Banking: An individualistic type of banking which helps to deliver customer specific services (also known as retail banking).
USSD-Based Banking: A USSD (unstructured supplementary service data) based on a menu-driven interface, and helps to use m-banking service without internet.
Application on Mobile Phone: An advanced mode of accessing m-banking service using an application (popularly known as app) installed on the mobile device.
Mobile Entertainment: Provides entertainment to the users based on services like video, audio, mobile gaming, downloading of ringtones.
Mobile Information Services: Helps to provide information to the users related to certain fields such as current affairs, travel, sports, news.
E-Commerce: A business model involving exchange of goods and services using internet and computer-mediated equipment.
SMS Banking: A basic m-banking service offered to customers through SMS (Short Message Service) communication.
M-commerce: An extension of e-commerce which supports in buying and selling of products using mobile devices.