E-Banking Service Quality, Customer Satisfaction and Customer Loyalty: (Mediate and Moderated Model)
No Thumbnail Available
Date
2024-10-19
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
This study examines how e-banking service quality influences customer loyalty, specifically highlighting the moderating effects of demographic factors such as age, gender, and education level. Additionally, it investigates the mediating role of e-satisfaction in the relationship between e-service quality and e-loyalty among selected private commercial banking customers in Addis Ababa. Data were collected from 308 online banking users in the city through a survey-based method. The research utilized mediation and moderation techniques from Baron and Kenny (1986) and Preacher and Hayes (2008), respectively.
The research adopts a quantitative, cross-sectional design to assess these relationships, gathering data through a structured survey administered to 308 e-banking users in Addis Ababa using convenience sampling. The survey instrument, based on established e-service quality frameworks, captures key dimensions of service quality, including efficiency, fulfilment, system availability, and privacy/security, as well as measures of customer satisfaction and loyalty.
Data analysis involved descriptive statistics, correlation, and regression analysis to determine the direct impact of e-service quality on satisfaction and loyalty. Additionally, mediation analysis was used to explore the role of customer satisfaction as a bridge between service quality and loyalty. The study also examines the moderating effects of demographic factors, such as age, gender, and education, on these relationships to provide a nuanced view of customer expectations.
Findings indicate that e-service quality positively impacts satisfaction, particularly through efficiency and fulfilment, which are essential for meeting customer expectations in digital banking. Customer satisfaction was also found to mediate the relationship between service quality and loyalty, suggesting that high-quality service alone may not directly lead to loyalty without a satisfying customer experience. The study’s results emphasize the importance of targeted service enhancements, suggesting that banks could improve customer loyalty by tailoring e-banking services to address specific demographic needs and preferences.