An Assessment of the Impact that Service Quality and Customer Satisfaction Possess on Customer Loyalty in Internet Banking

Abstract

The purpose of this study was to explore the effect of service quality (SQ) and customer satisfaction (CS) on consumer loyalty (CL) in internet banking in the case of the KSA. The basis of this study was set upon the e-SERVQUAL model and its dimensions: include efficacy, consistency, privacy, fulfilment, and website design. The study was aimed to recognize the elements influencing service quality (SQ) along with the concept and significance of SQ in online banking in particular. The study was based on the quantitative research design and the participants for this study were the bank customers who are using internet services. The sample size of this study was kept to 150 participants. A close-ended 5 point Likert scale questionnaire was formulated in order to assess the phenomenon of the research. In addition, the SPSS software along with Smart PLS was utilized to examine the data collected from 150 customers of the banks. The SEM and correlation test were applied for assessing the association between SQ and CL along with CS and CL. The findings of this study indicated that there is a significant positive impact of service quality and customer satisfaction on the customer loyalty of internet banking users in KSA. Hence, the banking industry of KSA has been recommended to pay specific heed to all the dimensions of e-SQ and customer satisfaction.