IDEAS home Printed from https://ideas.repec.org/a/spr/joiaen/v12y2023i1d10.1186_s13731-023-00287-y.html
   My bibliography  Save this article

Examining the effect of electronic banking service quality on customer satisfaction and loyalty: an implication for technological innovation

Author

Listed:
  • Samuel Godadaw Ayinaddis

    (Woldia University)

  • Birhan Ambachew Taye

    (Woldia University)

  • Bantie Getnet Yirsaw

    (Woldia University)

Abstract

In this ever-growing competitive banking industry, understanding the effect of electronic banking service quality on customers’ satisfaction and loyalty is the secret to being competitive and successful in the sector. In Ethiopia, measuring service quality in the banking sector is a new paradigm. The primary purpose of this research was to examine the effect of electronic banking (e-Banking) service quality on customer satisfaction in Ethiopia’s emerging banking industry. Data were obtained using a closed-ended structured questionnaire from a total of 385 participants selected using a convenience sampling technique. Frequencies, percentage distributions, group modes, standard deviations, Chi-square correlations, and multinomial logistic regression were employed to analyze the quantitative data. The results confirmed a significant effect of the variables responsiveness, reliability, security and privacy, speed, and convenience on customer satisfaction. Similarly, customer satisfaction with the electronic banking service quality has a significant effect on customer loyalty. System availability, easiness to use, and service charge, on the other hand, have no statistically significant impact on customer satisfaction. Hence, based on the findings of this study, it is recommended that banks should focus on the factors related to responsiveness, reliability, system availability, and speed to maximize customer satisfaction and loyalty. The adoption of electronic banking service that offers a meaningful guarantee takes care of problems promptly, provides services precisely as promised, is always available and quick delivery enables customers to be better satisfied and thus create committed and loyal customers.

Suggested Citation

  • Samuel Godadaw Ayinaddis & Birhan Ambachew Taye & Bantie Getnet Yirsaw, 2023. "Examining the effect of electronic banking service quality on customer satisfaction and loyalty: an implication for technological innovation," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-18, December.
    • Handle: RePEc:spr:joiaen:v:12:y:2023:i:1:d:10.1186_s13731-023-00287-y
    DOI: 10.1186/s13731-023-00287-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s13731-023-00287-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1186/s13731-023-00287-y?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Giao Ha Nam Khanh, 2017. "Customer satisfaction of Vietnam Airline domestic service quality," International Journal of Quality Innovation, Springer, vol. 3(1), pages 1-11, December.
    2. Besfat Dejen Engdaw, 2020. "The Impact of Quality Public Service Delivery on Customer Satisfaction in Bahir Dar City Administration: The Case of Ginbot 20 Sub-city," International Journal of Public Administration, Taylor & Francis Journals, vol. 43(7), pages 644-654, May.
    3. Vikas Chauhan & Rambalak Yadav & Vipin Choudhary, 2022. "Adoption of electronic banking services in India: an extension of UTAUT2 model," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 27(1), pages 27-40, March.
    4. Purva Khera & Stephanie Ng & Sumiko Ogawa & Ratna Sahay, 2022. "Measuring Digital Financial Inclusion in Emerging Market and Developing Economies: A New Index," Asian Economic Policy Review, Japan Center for Economic Research, vol. 17(2), pages 213-230, July.
    5. Ghazi Zouari & Marwa Abdelhedi, 2021. "Customer satisfaction in the digital era: evidence from Islamic banking," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-18, December.
    6. Vadivelu Tharanikaran & Sutha Sritharan & Vadivelu Thusyanthy, 2017. "Service Quality and Customer Satisfaction in the Electronic Banking," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(4), pages 1-67, March.
    7. Teshager Mazengia Asratie & David McMillan, 2021. "Determinants of financial development in Ethiopia: ARDL approach," Cogent Economics & Finance, Taylor & Francis Journals, vol. 9(1), pages 1963063-196, January.
    8. Elias G. Carayannis & Elpida T. Samara & Yannis L. Bakouros, 2015. "Innovation and Entrepreneurship," Innovation, Technology, and Knowledge Management, Springer, edition 127, number 978-3-319-11242-8, December.
    9. Achmad Supriyanto & Bambang Budi Wiyono & Burhanuddin Burhanuddin, 2021. "Effects of service quality and customer satisfaction on loyalty of bank customers," Cogent Business & Management, Taylor & Francis Journals, vol. 8(1), pages 1937847-193, January.
    10. Nesru Kasim Banke & Mekonnen Kumlachew Yitayaw, 2022. "Deposit mobilization and its determinants: evidence from commercial banks in Ethiopia," Future Business Journal, Springer, vol. 8(1), pages 1-10, December.
    11. Jamil Hammoud & Rima M. Bizri & Ibrahim El Baba, 2018. "The Impact of E-Banking Service Quality on Customer Satisfaction: Evidence From the Lebanese Banking Sector," SAGE Open, , vol. 8(3), pages 21582440187, July.
    12. Imola Drigă & Claudia Isac, 2014. "E-banking services – features, challenges and benefits," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 14(1), pages 49-58.
    13. Bruce Mwiya & Mathew Katai & Justice Bwalya & Maidah Kayekesi & Sekela Kaonga & Edwin Kasanda & Christopher Munyonzwe & Bernadette Kaulungombe & Eledy Sakala & Alexinah Muyenga & Donald Mwenya, 2022. "Examining the effects of electronic service quality on online banking customer satisfaction: Evidence from Zambia," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2143017-214, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Adriana Grigorescu & Oana Oprisan & Cristina Lincaru & Camelia Speranta Pirciog, 2023. "E-Banking Convergence and the Adopter’s Behavior Changing Across EU Countries," SAGE Open, , vol. 13(4), pages 21582440231, December.
    2. Chioma Judith Madueke & Serife Eyupoglu, 2024. "Sustaining Economic Growth: E-Service Quality’s Role in Fostering Customer Loyalty in Nigeria SMEs," Sustainability, MDPI, vol. 16(21), pages 1-23, October.
    3. Dhruba Kumar Gautam & Gunja Kumari Sah, 2023. "Online Banking Service Practices and Its Impact on E-Customer Satisfaction and E-Customer Loyalty in Developing Country of South Asia-Nepal," SAGE Open, , vol. 13(3), pages 21582440231, July.
    4. Ashraf Mishrif & Asharul Khan, 2023. "Technology adoption as survival strategy for small and medium enterprises during COVID-19," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-23, December.
    5. 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).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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).
    2. Fahad Najeeb Khan & Muhammad Usman Arshad & Muhammad Munir, 2023. "Impact of e-service quality on e-loyalty of online banking customers in Pakistan during the Covid-19 pandemic: mediating role of e-satisfaction," Future Business Journal, Springer, vol. 9(1), pages 1-12, December.
    3. Tanjim Istiaque Chowdhury & Md Rakibul Hoque & Peter Wanke & Mohammad Zahir Raihan & Md Abul Kalam Azad, 2022. "Antecedents of Perceived Service Quality of Online Education During a Pandemic: Configuration Analysis Based on Fuzzy-Set Qualitative Comparative Analysis," Evaluation Review, , vol. 46(3), pages 235-265, June.
    4. Yu-Shen Fang & Li-Chun Fang, 2022. "A Review of Chinese E-Commerce Research 2001-2020," International Journal of E-Business Research (IJEBR), IGI Global, vol. 18(1), pages 1-22, January.
    5. Ahmet Faruk Aysan & Abdelilah Belatik & Ibrahim Musa Unal & Rachid Ettaai, 2022. "Fintech Strategies of Islamic Banks: A Global Empirical Analysis," FinTech, MDPI, vol. 1(2), pages 1-10, June.
    6. Siti Noor Aishah Mohd Sidik & Hanis Athirah Abd Sukor & Nur Fatwa Atiqah & Aiezwa Zetty Syafina Saedon & Fatin Syafiqah Mohd Apandi & Muhammad Kamal Fudhail Mohd Rahim, 2024. "Customer Satisfaction among J&T Users in Terengganu," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(9), pages 352-362, September.
    7. Karolus Karni Lando & Achmad Sudiro & Wahdiyat Moko & Nur Khusniyah Indrawati, 2024. "The Effect of Service Quality on Recertification. Mediated by Customer Satisfaction and Relationship Commitment," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 160-179.
    8. Fathi, Mohammad Reza & Zeinali, Mahsa & Torabi, Mohsen & Alavizadeh, Seyed Mohammad, 2022. "Structural analysis of the future of Iranian online banking employing a MICMAC approach," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    9. Daud, Siti Nurazira Mohd & Ahmad, Abd Halim, 2023. "Financial inclusion, economic growth and the role of digital technology," Finance Research Letters, Elsevier, vol. 53(C).
    10. Oughton, Edward J. & Amaglobeli, David & Moszoro, Marian, 2023. "What would it cost to connect the unconnected? Estimating global universal broadband infrastructure investment," Telecommunications Policy, Elsevier, vol. 47(10).
    11. Hua Zhang & Qiwang Zhang & Man An & Zixuan Zhang & Nanqiao He, 2023. "Unveiling the Impact of Digital Financial Inclusion on Low-Carbon Green Utilization of Farmland: The Roles of Farmland Transfer and Management Scale," Sustainability, MDPI, vol. 15(4), pages 1-20, February.
    12. Chioma Judith Madueke & Serife Eyupoglu, 2024. "Sustaining Economic Growth: E-Service Quality’s Role in Fostering Customer Loyalty in Nigeria SMEs," Sustainability, MDPI, vol. 16(21), pages 1-23, October.
    13. Sheema Liza Idris & Masurah Mohamad, 2023. "A Study on Sentiment Analysis on Airline Quality Services: A Conceptual Paper," Information Management and Business Review, AMH International, vol. 15(4), pages 564-576.
    14. James Obilikwu, 2024. "Financial Technologies (Fintech) and Financial Development in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(6), pages 3111-3123, June.
    15. Konstantinos Zervoudakis & Konstantinos Mastrothanasis & Stelios Tsafarakis & Evangelia Krassadaki & Anastasios Kyriakidis, 2024. "Evaluating Principals’ Satisfaction with Selection Processes in Second Chance Schools: A Multicriteria Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 6312-6338, June.
    16. Yadgar Taha M. Hamakhan, 2020. "The effect of individual factors on user behaviour and the moderating role of trust: an empirical investigation of consumers’ acceptance of electronic banking in the Kurdistan Region of Iraq," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 6(1), pages 1-29, December.
    17. Farhana Nasrin, 2023. "An Empirical Analysis of Macroeconomic and Bank Specific Factors Ascertaining Bank Deposit: A Study on Bangladesh," International Journal of Economics and Financial Issues, Econjournals, vol. 13(3), pages 46-55, May.
    18. Olga Yurievna Voronkova & Margarita V. Melnik & Yulia V. Nikitochkina & Nadezhda M. Tchuykova & Alla A. Davidyants & Svetlana V. Titova, 2020. "Corporate social responsibility of business as a factor of regional development," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 2170-2180, March.
    19. Imola Drigă, 2014. "Online Banking in The Romanian Banking System," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 14(2), pages 85-92.
    20. Gemici, Evrim & Gemici, Zafer, 2021. "A Comparative Study on Turkey’s Science and Technology (S&T) Indicators," OSF Preprints csyud, Center for Open Science.

    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:spr:joiaen:v:12:y:2023:i:1:d:10.1186_s13731-023-00287-y. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.