IDEAS home Printed from https://ideas.repec.org/a/pes/ieroec/v11y2020i1p59-93.html
   My bibliography  Save this article

ES-QUAL model and customer satisfaction in online banking: evidence from multivariate analysis techniques

Author

Listed:
  • Rizwan Raheem Ahmed

    (Indus University, Pakistan)

  • Giedrius Romeika

    (Vilnius University, Lithuania)

  • Raimonda Kauliene

    (Vilnius Gediminas Technical University, Lithuania)

  • Justas Streimikis

    (Lithuanian Institute of Agrarian Economics, Lithuania, University of Economics and Human Science in Warsaw, Poland)

  • Rimantas Dapkus

    (Vytautas Magnus University, Lithuania)

Abstract

Research background: The commercial banks are adopting online services for their transactions to stay competitive and fulfill the customers' needs. There is a dire need to satisfy online customers in a competitive environment. Thus, this paper employed the ES-QUAL model and two mediating variables and outlined the recommendations to the management of the online banking industry to develop effective strategies. Purpose of the article: The undertaken research aimed to examine the electronic banking service quality and customer satisfaction. For this purpose, we employed the ES-QUAL model and examined the direct impact of ES-QUAL dimensions and customer’s satisfaction. The secondary task of this paper is to investigate the mediation effect of customer's trust and the perceived value in an association between the ES-QUAL model and customer satisfaction. Finally, we examine and check whether customer satisfaction translates into the business performance of commercial banks or not. Methods: To achieve the overall goal of this research, SEM-based multivariate approach has been used, including confirmatory factor analysis, exploratory factor analysis, and multiple approaches (normal theory, and bootstrapping) to examine the moderation between the exogenous and endogenous variables. For the validation of hypotheses and results, a financial analysis has been performed simultaneously with the primary analysis. The research is done for a sample of 910 respondents of the account holders of five top commercial banks of Pakistan. Findings & Value added: The outcomes of the direct investigation revealed an affirmative, and potent impact of ES-QUAL dimensions on customer’s satisfaction. The outcomes of the indirect relationship exhibited that the perceived value and trust mediate ES-QUAL dimensions and customer satisfaction. The secondary data of selected five commercial banks and ratios analysis validated the results of the ES-QUAL model, and it is concluded that the results are linear with the outcomes of customers' satisfaction of primary analysis.

Suggested Citation

  • Rizwan Raheem Ahmed & Giedrius Romeika & Raimonda Kauliene & Justas Streimikis & Rimantas Dapkus, 2020. "ES-QUAL model and customer satisfaction in online banking: evidence from multivariate analysis techniques," Oeconomia Copernicana, Institute of Economic Research, vol. 11(1), pages 59-93, March.
    • Handle: RePEc:pes:ieroec:v:11:y:2020:i:1:p:59-93
    DOI: 10.24136/oc.2020.003
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.24136/oc.2020.003
    Download Restriction: no
    File URL: https://libkey.io/10.24136/oc.2020.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Justyna Łapińska & Iwona Escher & Joanna Górka & Agata Sudolska & Paweł Brzustewicz, 2021. "Employees’ Trust in Artificial Intelligence in Companies: The Case of Energy and Chemical Industries in Poland," Energies, MDPI, vol. 14(7), pages 1-20, April.
    2. Radovan Bačík & Beata Gavurova & Igor Fedorko & Richard Fedorko, 2021. "Website quality factor as a multidimensional construct and its impact on the use of e-banking," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(1), pages 542-557, September.
    3. Joanna Ejdys & Aleksandra Gulc, 2020. "Trust in Courier Services and Its Antecedents as a Determinant of Perceived Service Quality and Future Intention to Use Courier Service," Sustainability, MDPI, vol. 12(21), pages 1-18, October.
    4. Igor Fedorko & Richard Fedorko & Beata Gavurova & Radovan Bačík, 2021. "Social media in the context of technology acceptance model," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(1), pages 519-528, September.
    5. Michalak Szymon & Bartkowiak Paweł & Ankiel Magdalena & Olejniczak Tomasz & Stachowiak-Krzyżan Magda, 2022. "Motives for the Usage of Collaborative Fashion Consumption Online Platforms," Marketing of Scientific and Research Organizations, Sciendo, vol. 44(2), pages 41-66, June.
    6. Salome O. Ighomereho & Afolabi A. Ojo & Samuel O. Omoyele & Samuel O. Olabode, 2022. "From Service Quality to E-Service Quality: Measurement, Dimensions and Model," Papers 2205.00055, arXiv.org.
    7. Justyna Witkowska & Sylwia Stachowska, 2021. "Competencies of Sales Employees as a Determinant of the Quality of Provided Services Based on the Insurance Market," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 841-855.
    8. Kamil Decyk, 2021. "Service Sector Productivity in the European Union Member States," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 185-202.

    More about this item

    Keywords

    ES-QUAL model; customer satisfaction; financial performance; Internet banking; Normal theory method; bootstrapping method; Structural Equation Modeling; SEM;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pes:ieroec:v:11:y:2020:i:1:p:59-93. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adam P. Balcerzak (email available below). General contact details of provider: https://edirc.repec.org/data/ibgtopl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.