Technology-Based Self-Service Banking Quality Dimensions, Customer Satisfaction, and Loyalty: Linkages and Implications for Management

Technology-Based Self-Service Banking Quality Dimensions, Customer Satisfaction, and Loyalty: Linkages and Implications for Management

Rajiv Sindwani (YMCA University of Science and Technology, India)
Copyright: © 2018 |Pages: 21
DOI: 10.4018/978-1-5225-5026-6.ch007

Abstract

Technology enabled automated banking is referred to as technology-based self-service banking (TBSSB). This paper probes the relationship between TBSSB service quality, customer satisfaction and loyalty. The EFA and CFA identify and confirm the structure constituting of four factors of TBSSB service quality (Convenience, Reliability and Security, Responsiveness, and Personalization), one factor of customer satisfaction, and one factor of loyalty. The model is empirically tested for reliability and validity. AMOS is used to investigate the relationship amid dimensions using SEM. It is found that convenience and personalization have a significant effect on customer satisfaction, and personalization and customer satisfaction have a significant effect on loyalty. The two structural models (partially and fully mediated) are also developed and compared. Customer satisfaction is confirmed as a mediating factor. The study presents managerial implications covering useful insights about the TBSSB factors that need to be focused on for increasing customer satisfaction and loyalty.
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Literature Review

Various models to measure service quality have been proposed by researchers time to time. In literature, main conceptualizations of service quality are either based on the disconfirmation between perception and expectation (Grönroos, 1984; Parasuraman et al. 1988) or performance only approach (Cronin & Taylor, 1992). Page and Spreng (2002) found that performance-only measure is more reliable and stronger indicator of service quality than performance-expectations measure. Lee et al. (2000) showed that perception/performance based measures of service quality capture more of the variation in service quality than considering difference between perception and expectation. In addition to this, the performance-based scale reduces the number of items to be measured by half as compared to the disconfirmation scale.

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