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Understanding the Service Quality and Customer Satisfaction of Mobile Banking in Bangladesh: Using a Structural Equation Model

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  • Abdul Gaffar Khan
  • Reshma Pervin Lima
  • Md Shahed Mahmud

Abstract

This article aims to understand the association between service quality and customer satisfaction to use mobile banking through structural equation model, because, Bangladesh is one of the fastest increasing mobile banking service providers in the world. A structured survey questionnaire was prepared to collect data from participants in Bangladesh. A convenience sampling method was used to select potential participants in this study. Out of the distributed questionnaires, 240, completed and usable, were selected for the analysis which employed partial least squares structural equation modeling (PLS-SEM). The results showed that there are positive and significant effects of all constructs of service quality, namely, tangibility, reliability, responsiveness, assurance and empathy on customer satisfaction for using mobile banking. Particularly, the responsiveness has a strong impact ( β = 0.3165) on customer satisfaction. Furthermore, the tangibility has identified as less significant factor ( β = 0.0770) on customer satisfaction. Findings also indicate that mobile banking service providers should concentrate on all dimensions of service quality, with special focus on responsiveness and reliability for improving their customer satisfaction. This study has several implications for researchers, banking authority, policymakers and financial agencies when rendering services to end users and customers of mobile banking. Furthermore, this implication also helps banks to understand and develop strategies as well as policies to improve the services of mobile banking of Bangladesh.

Suggested Citation

  • Abdul Gaffar Khan & Reshma Pervin Lima & Md Shahed Mahmud, 2021. "Understanding the Service Quality and Customer Satisfaction of Mobile Banking in Bangladesh: Using a Structural Equation Model," Global Business Review, International Management Institute, vol. 22(1), pages 85-100, February.
    • Handle: RePEc:sae:globus:v:22:y:2021:i:1:p:85-100
    DOI: 10.1177/0972150918795551
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    References listed on IDEAS

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    Cited by:

    1. S. Ananda & Raghavendra Prasanna Kumar & Dharmendra Singh, 2023. "A mediation analysis of perceived service quality, customer satisfaction and customer engagement in the banking sector," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(3), pages 570-584, September.
    2. Khaled Mahmud & Md. Mahbubul Alam Joarder & Kazi Muheymin-Us-Sakib, 2022. "Adoption Factors of FinTech: Evidence from an Emerging Economy Country-Wide Representative Sample," IJFS, MDPI, vol. 11(1), pages 1-27, December.
    3. Khan, Md. Rahat & Pervin, Most. Tahura & Arif, Md. Zahir Uddin & Hossain, S.M. Khaled, 2024. "The impact of technology service quality on Bangladeshi banking consumers' satisfaction during the pandemic situation: Green development and innovation perspective in banking service," Innovation and Green Development, Elsevier, vol. 3(2).

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