The Impacts of Service Quality and Customer Satisfaction on Customer Loyalty in Internet Banking

Abstract

This study examined the relationship and the impacts of e-SQ and e-Satisfaction on e-Loyalty in internet banking. The modified version of E-SERVQUAL instrument was used to determine e-SQ for internet banking service of a commercial bank in Malaysia. Questionnaires were collected randomly from 265 internet banking users. The findings indicated that assurance-fulfillment, efficiency-system availability; privacy, contact-responsiveness and website aesthetics and guide constitute e-SQ for the internet banking service. Website aesthetics and Guide, Efficiency-System availability and Contact-Responsiveness of the internet banking e-SQ were positively affected e-Satisfaction. E-Satisfaction was positively significant to e-Loyalty. E-Satisfaction was found to partially mediate the relationship of Website aesthetics and Guide of e-SQ and customer e-Loyalty. The result highlighted that attractiveness and appearance , and the information and guidance provide by the websites are important features to internet banking users. This finding reflected that in internet banking, beside the technical and functionality aspects of -SQ, such as efficiency, fulfilment and system availability, the aesthetic value and proper guidance of the websites are also crucial to ensure quality of e-SQ that will lead to e-Satisfaction and e-Loyalty.