E-Service Quality in Internet Banking

Research Paper:

“E-Service Quality in Internet Banking”

Table of Content

1 INTRODUCTION 3

2 SUMMARY OF THE ARTICLES 4

3 ANALYSIS OF THE KEY ISSUES RAISED IN THE ARTICLES 6

3.1 THE DIMENSIONALITY OF E-SERVICE QUALITY 6

3.2 EFFECT OF DEMOGRAPHICS VARIABLE AND CULTURE 10

3.3 WHY DELIVERING E-SERVICE QUALITY? 11

4 CONCLUSION 13

5 REFERENCES 14

5.1 ARTICLES REVIEWED 14

5.2 ADDITIONAL LITERATURE 14

1 INTRODUCTION

Together with technology, internet is the most profound trend affecting services marketing today. Internet has resulted in various new services. Internet banking service is one of these new services enabled by internet. Internet banking (IB) represents “the banking services provided via a secure website operated by the bank provider, thus facilitating the use of internet as a remote delivery channel” (Yee, B. and Faziharudean, T., 2010). Internet banking allows customers to access their accounts, check their balance, apply for loans and/or to shift money between accounts. All these services can be done easily from a laptop at home, a mobile phone while waiting for the subway, 24 hours a day and 7 days a week. With the explosion of smart phone sales, e-banking is rapidly growing all over the world.

From a customer-oriented perspective, internet service quality can be defined as “the extent to which a website facilitates the efficient and effective shopping, purchasing and delivery”. Firms trying to deliver e-service quality face challenges due to the specific nature of internet challenges such as the lack of physical tangibles, customer’s greater control over the service delivery process or the lower switching costs (Cox and Dale (2001), Gounaris and Dimitriadis (2003), and Long and McMellon (2004). Because of popularity its popularity when it comes to measure traditional service quality, SERVQUAL model was also presented as a medium to measure service quality in internet delivery channel. However, because of the intrinsic characteristics of internet channel, SERVQUAL was found to need some adaptations in order to be applicable in internet service contexts.

If research is still struggling to find an accepted model to measure e-service quality, research has clearly demonstrated the importance of delivering e-service quality. Indeed, developing a superior quality of service compared