The Moderating Role of Customers Involvement in the Relationship between Electronic Banking Service Dimensions and Customer Loyalty: Case of Ethiopian Commercial Banks
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Date
2023-06-04
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A.A.U.
Abstract
Customers Loyalty is considered to be a customer's intention to show preference to a product
or a business over other products or businesses for specific needs. A loyal customer is
someone who frequently buys products and services from one seller, and persistently
recommends those to all their relatives and friends communicating a positive attitude
(Mohammadi, 2015).Yet the study and practice of Customers loyalty is not overwhelming,
especially in understanding the antecedents considering the individual differences. The goal
of this thesis was to investigate and analyze factors affecting Customers loyalty and the
moderating role of Customers involvement in Ethiopian commercial banks. The explanatory
design used to explain the relationship among the variables of the study. This study used two
sampling stages. The first one is to sample out the bank's (strata 's) from the banking industry
and secondly a number of respondents within the selected companies. Data were collected
from the sample of 323 from three banks through questionnaire. Descriptive statistics,
correlation, regression analysis, and hierarchical regression analysis were used to analyze
the data with the aid of SPSS version 27. And additionally Hayes model 1 was used for
computing and depicting the moderation analysis. The results show that quality service,
quality internet, relative advantage, security, awareness and Customers involvement
significantly influence the level of Customers loyalty. The study also finds that Customers
involvement has a moderating role on the effect between predictor awareness and Security on
Customers loyalty. The study recommended that banks should handle customers with a great
concern for their competitive advantage. The study deem electronic banking service
dimensions and customer loyalty however further research may consider investigating this
variables independently and further investigate the moderating effect of other e-banking
service dimensions in predicting Customers loyalty.