Assessment of E-Service Quality Dimensions and Its Influence on Customer Satisfaction: A Study on the Online Banking Services in the Philippines

Abstract

Application of technology in financial services paved the way for banking institutions to shift from the traditional way of banking to a more efficient and less costly operation by means of electronic banking. According to a survey conducted by the Bangko Sentral ng Pilipinas (2017), though there is a significant internet usage and awareness of online payment methods amongst Filipinos, almost half of those with bank accounts and using the internet remains indecisive about electronic transactions due to various behavioral factors. Therefore, this paper was made to study and assess the significant factors, or dimensions, of service quality which cause online banking to impact on customer satisfaction - including efficiency, fulfilment, system availability and privacy. A conceptual framework was developed to create a structure for the hypothesis testing. Following the construct of e-service quality measurement model developed by Parasuraman et.al. (2005), E-S-QUAL survey for e-services was adapted to assess the overall online banking experience of respondents (from a given sample size) via convenience sampling. Analysis was conducted to validate statistical normality using normal probability plot, confirm test validity and reliability by means of measuring Cronbach's Alpha and establish interrelationship by means of Pearson correlation and multiple regression analysis for the core dimensions vs. perceived value and loyalty intentions. Amongst the quality dimensions examined, it was found out that efficiency and fulfilment have the greatest impact on perceived value and loyalty retention of customers.