Relationship between online service quality and customer satisfaction: a study in Internet banking

Abstract: In the last few years we have witnessed a substantial growth of internet-
based services, both from pure Internet businesses and from traditional
companies that are developing online services. One of the key challenges of
the Internet as a service delivery channel is how they manage service
quality, which holds a significant importance to customer satisfaction. The
purpose of this research was to gain a better understanding of the service
quality dimensions that affect customer satisfaction in the Internet banking
sector from a consumer perspective. Based on a detailed literature review, a
frame of reference was developed. Five service quality dimensions were
selected to be tested in the Internet banking sector in order to explore the
relationship between service quality and customer satisfaction. A
qualitative research approach was used to get a better understanding of this
issue. However, a small quantitative survey was also conducted to support
the results obtained from the qualitative study. The empirical data were
gathered through in-depth interviews with four people by using a semi-
structured questionnaire and a survey were conducted with 25 people. Data
presentation and analysis were done in accordance with the research
questions and the frame of reference. Finally, in the last chapter findings
and conclusions were drawn by answering the research questions. Nine service
quality dimensions in Internet banking were identified in this study (i.e.,
efficiency, reliability, responsiveness, fulfillment, privacy,
communication, personalization, technology update, and logistic/technical
support). The quality performance of all the nine dimensions was shown to
have a strong impact on customer satisfaction. Efficiency, reliability,
responsiveness, fulfillment, privacy was found to be the core service
quality dimensions in Internet banking. Finally, technology update and
logistical or technical support was two new dimensions found in this study.