Factors Influencing Customers Satisfaction With Ebanking Marketing Essay

Published Date: 23 Mar 2015

Electronic banking has been defined variously. It may refer to the provision of banking information, services and products through a website page in the internet (Al-Agaga and Nor 2012;Rahmath 2010,p.54). This paper is a literature review focusing generally on the factors that influence customer satisfaction with regard to e - banking services in Klang Valley (Malaysia). There will be effort to find if there is any relationship between the factors that influence customer satisfaction. This paper will also undertake a dissection aimed at finding the factors that least influence customer satisfaction and those that have the greatest influence. The magnitude of the influence of these factors on customer satisfaction will also be explored in the literature review.

2.1 Theoretical framework on the factors that influences the customer satisfaction

Based on the variables, the banking industry need to focus and search for best practices to cater the problem and issued arising from the customer expectation. Based on Carlisle, H.M, 1976, Contingency Theory Management Concepts and Situations, Science Research Associates Inc. allow analyzing a situation and determining what variables influence the decision with which are concerned. The term contingency as used in contingency theory is similar to its use in direct practice. A contingency is a relationship between two phenomena. If one phenomenon exists, then a conclusion can be drawn about another phenomenon. From the Contingency Theory to achieve the customer satisfaction, the banks need to investigate the factors that influence the customer satisfaction of e-banking services. Figures 2.1 shown that the customer satisfaction as a purpose or goal and the independent variables are the influences and the banking industry is the management which will make decision for implementation and actions toward the goal.

BANKING INDUSTRY implementation / actions

Figure 2.1 Theoretical Framework

2.2 Factors Influencing Customers' Satisfaction with E-Banking

According to (Al-Agaga and Nor 2012) electronic banking is the delivery of banking information and services to bank clients through a variety of service delivery systems. Such may include the use of personal computers, mobile phone browsing technologies or the use of modern desktop software, telephone or television services. This can also include the use of bill payments in execution of investments (Poon and Tan 2012).

Through electronic banking procedures, banks are increasingly able to gain competitive advantage on the global scale (Ian 2012). Banks have also been able to establish closer relationships with customers through introduction and implementation of electronic banking. When determining the factors that influence customer satisfaction with regard to e-banking, certain online dimensions can be considered (Bedman 2012). These include accessibility, reliability, and ease of use, personalization, security, credibility and responsiveness.

Customer satisfaction can be defined as a customer's full overall assessment of the performance or experience that the banking industry has offered to them. This overall satisfaction across all the product and service provided by e-banking that has a strong positive impact on customer loyalty (Gustafsson, Johnson & Roos, 2005). Normally customer satisfaction measured in a set of statements using a Likert scale where customer is requested to fill up each statement on their perception and expectation from their satisfaction of the services performance of the bank's measured.

According to Anderson E.A (1993), the convenience provided by the banks will be affected on customer's overall satisfaction. The key major determinant of bank choice by customer is the location. It is the customer benefits to have a convenience and accessibility location where it can make the customer easy to do their daily business transaction with the bank. The ability of bank to deliver these benefits will definitely give impact on customer satisfaction. Current situation the banks are focusing to maintain a loyal customer base especially in the competitive business market now. Their strategies are set to increase customer's satisfaction and loyalty through service quality. Devlin (2001) mentioned that even the competitors will be very competiveness to provide latest services that other retail banks offered, however, for customers, it is nothing much differences as long their satisfy with the bank benefits.

The term customer satisfaction is used frequently by individuals in the marketing field to

measure the extent of the organization's ability to provide products that meet or surpass

the consumer's need and expectations, so as to identify the possibility of his repeated purchase back of its products and services in the future. In general, the term consumer satisfaction is utilized in signifying the consumer's feelings towards the organization and its products.( Paul et al 2010 ) indicate that customer satisfaction can be defined as ' the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals. While (Kotler 2006) defines satisfaction as: a person's feeling of pleasure or disappointment resulting from comparing a product's perceived performance (or outcome) in relation to their expectations, and additionally suggests that the degree of customer satisfaction is the key to the success of the marketing strategy. (Alsamydai and Rudaina 2006) argue that the degree of satisfaction represents the difference between what the product achieves regarding the satisfaction of the customer after acquiring it and benefiting from it, and what he had expected to benefit from it before acquiring it. The more the customer feel the satisfaction meets or surpasses the raised need, the higher the degree of satisfaction.

Therefore, customer satisfaction of services is achieved by the supplication of core and

supplementary services that are to their satisfaction, which is only accomplished through the organizations' analyzing with accurate identification of the needs and desires of the consumers and working to meet them ( Alsamydai and Rudaina 2003). With the growing range of products and services ,customers choices are mainly determined based on their needs such as perception of quality, service and value, thus, the banks need to understand the determinants of customer satisfaction. The increased of the customer satisfaction also will leads to behavioral outcomes such as commitment, loyalty, intention to stay and post purchase behavior (Newman, 2001). Since most banks seek to satisfy customers by meeting their requirements, it is essential for banks that offer e-banking services to regularly and consistently measure the degree of satisfaction of their customers. As customers use the e-banking services, it might be that they are not satisfied, to some extent, with certain dimensions of the service quality. For this reason, with the surveys conducted by the author this research will examines customer satisfaction with various service quality dimensions and the result of analysis and finding will be discuss in chapter four.

Researchers have considered that satisfaction factor as one of the most important theoretical as well as practical issues (Jamal, 2004). Oliver (1981, p. 29) firstly defined it in the consumption context as "the summary psychological state resulting when the emotion surrounding disconfirmed expectations is coupled with the customer's prior feelings about the consumption experience". In other words, satisfaction reflects a post-purchase evaluation of product quality

given pre-purchase expectations (Kotler,1991).On one hand, within literature on services marketing, satisfaction has traditionally been defined as a cognitive-based phenomenon (Westbrook, 1987).The cognition mainly in terms of the studies which are expectations or disconfirmation paradigm, which states that the expectations originate from the customer's beliefs about the level of performance that a product or service would provide (Oliver, 1980).

2.2.1 Convenience factor that influence customer satisfaction in e-banking

E-banking should provide its users with a high degree of convenience that allows customers to access bank services all the time in any place without much struggle (Hazlina 2011). The ease with which customers are able to access computers is used as an indicator of customer satisfaction. The main determinants of customer satisfaction with regard to convenience enhanced through e-banking have been identified (Liberati and Mariani 2012; Anita 2010). The main source of customer satisfaction in this respect is attentiveness, responsiveness of the e-banking structures and systems, care and the friendliness of the services to the users. Customers will often be dissatisfied when they feel that e-banking causes them a lot of inconvenience contrary to their expectation (Kuo 2013, p. 54). Such dissatisfaction results from lack of integrity, reliability, responsiveness, and availability, especially after the introduction and implementation of e-banking procedures (Ahmad and Alzubi, 2011, p. 3).

Provision of customer interactivity through e-banking procedures is a prerequisite for customer satisfaction. The customer relationship management teams in the banks must ascertain that e-banking procedures meet customers' needs (Lai 2011: Jyh-Shen and Chung-Chi 2012). For example, the bank could introduce the use of interactive loan calculators, exchange rate converters, and calculators of customers' borrowed mortgage calculators on the web site. Karjaluoto et al (2012) argued that introduction and implementation of such accessories in the banking industry enhance convenience in terms of access and use of banking services and products (p.5). If this is made effective and carefully implemented, e-banking can tremendously enhance customer convenience and increase satisfaction in the banking industry (Gao 2011).

Previous studies have shown positive relationship between customer satisfaction and e-banking when convenience factor is considered (Fleming 2011;Lee 2010; Wu et al 2010). Convenience caused by e-banking procedures thus plays a significant role in influencing customer satisfaction levels with the banking services (Hall 2011). Convenience is a competitive advantage tool that many banks invest in so as to have a cutting edge against its competitors. Migdadi (2013) maintains that adopting and using e-banking procedures is thus likely to enhance the competitive advantage of banks in Klang Valley Malaysia. This is because clients will be able to access services conveniently, which is what most customers look for in the banking industry. E-banking has been associated with very high degree of convenience which, in turn, allows many customers in the banking industry to access internet bank at all times and in all places (Fleming 2011).

Convenience has increasingly been linked to online consumer choices. For example, in a recent survey, convenience was found the main reason why US consumers selected the internet channel for news services (Pew, 2005). Time savings is one of the important aspects of the convenience in the online services (Bellman et al., 1999; Dellaert and Kahn, 1999).A number of studies has identified that convenience as an important influence and adoption factor (ACNielsen, 2005; Pew, 2003; Ramsay and Smith, 1999; Thornton and White, 2001). A US survey found the main motivator for internet banking to be convenience in terms of 24/7 access and time savings (Pew, 2003).Thus, electronic banking provides a higher degree of convenience that enables customers to access online banking, mobile banking and ATM at all times around the globe. Nevertheless, the ease of access to electronic banking is perceived as a measure of relative advantage (T. O. Ombati et al, 2010 and Abdullah et al, 2011). According to R. Supinaha et al, (2008), the provision of customer service delivery is an important criterion that attracts users in the delivery of electronic banking. Today, convenience is considered to be one of the influential factors of the customer service delivery of e-base banks. Research has proven that, positive relationship between convenience and service delivery as a critical factors on the use of electronic Banking. As a result, we are able to confirm that convenience has a significant influence on customer service delivery. These findings are also consistent with other research findings. For example, Poon and Tan (2008), Goi, (2006), Alam, (2009 ), Suganthi, (2010) and Hazlina et al (2011) found that electronic banking provides a higher degree of convenience that enables customers to access bank services at all times around the globe. Thus, the same study also indicated that the perceived convenience was the most influential variable of overall adoption of all three service delivery activities investigated. Thus, having reviewed the logic of customer service delivery, it is imagined that convenience has a positive effect on customer service delivery on electronic banking services; because it is easy to use. The measure for the convenient in this context consists of: Ease of use, awareness, internet access anytime and anywhere, no queue, save time as compared to conventional banking, user friendly, easy login, check transaction details, efficiency.E-banking provides higher degree of convenience that enables customers to access internet bank at all times and places. Apart from that, the ease of access of computers is perceived as a measure of relative advantage (Daniel,1999, Black et al, 2001; Polatoglu and Ekin, 2001; Gerrard and Cunningham, 2003). Johnston (1995) revealed that there are some service quality determinants that are predominantly satisfiers and others that are predominantly dissatisfies with the main sources of satisfaction being attentiveness, responsiveness, care and friendliness. The main sources of dissatisfaction are integrity, reliability, responsiveness, availability and functionality. According to Ainscough and Luckett (1996), the provision of customer interactivity is an important criterion that attracts users in the delivery of e-banking. Gerrard and Cunningham (2003) also identify other factors of paramount importance in ensuring the success of e-banking, i.e. the ability of an innovation to meet users' needs using different feature availability on the web site. For instance, the provision of interactive loan calculators, exchange rate converters, and mortgage calculators on the web sites draw the attention of both users and non-users into the bank's web site. A UK study uncovered five key service quality attributes, such as security related issues, convenience, speed and timeliness of the service, and product variety/diverse features (White and Nteli, 2004). Therefore, it is hypothesized that convenience has positive effect on customer satisfaction.

2.2.2 Accessibility factor that influence customer satisfaction in e-banking

Accessibility in the context of electronic banking refers to the easiness with which clients are able get banking information, products and services through the internet (Ahmad and Alzubi, 2011, p. 2). This depends on several factors. The factors include content format, the hardware the client is using, software and its settings, and availability of internet connections (Bak and Stair 2011). There are also factors relating to the customers' and bank's environment, and the ability or otherwise of the customer to use the existing electronic devices and technique to access the services sought (Gitman and McDaniel 2011).

Bank websites must be developed and website banking support implemented in such a way that the bank users or customers conveniently, effectively and efficiently access services and products through the website (Ahmad and Alzubi, 2011, p. 2). For example, the banks should be able to provide its web page users with certain disabilities, such as visual impairments, with the web pages having texts equivalent for image content. This should be designed in such a way that even the visually impaired are able to access the web page via a screen reader (Ahmad and Alzubi, 2011, p. 2). Along with enhancing accessibility for the visually impaired, e-banking can be satisfying to its users if other issues are addressed as well. Such may include download speed and discoverability (Ahmad and Alzubi, 2011, p. 2).

Accessibility issues also encompass the ability of the bank to provide reliable responses to clients' concerns. Attentiveness and ease of use of the designed e-banking processes have considerable impact on customer satisfaction. Karjaluoto, Mattila and Pento (2012); Yuan-shuh (2009) assert that there tend to be a general positive correlation between accessibility of quality services and customer satisfaction. The e-banking services must prove to be faster, have the relevant content to the users, and be rated as reliable Only by meeting these criteria can e-banking services enhance customers' satisfaction (Frank, Lesley, Phillip and Markos 2012).

Studies have found significant relationship between customer satisfaction and accessibility of banking services through e-banking procedures (Liberati and Mariani 2012). . It is thus accurate to argue that accessibility of banking services through e-banking procedure is greatly enhanced. Banks in Klang Valley (Malaysia) should thus endeavor to invest in e-banking and ensure that the accessibility dimension is given consideration since it influences customer satisfaction levels with e-banking as (Frank et al 2012) argued.

Accessibility, which may be related to convenience factor, has been found important (Ramsay and Smith, 1999). High levels of workplace internet use have also been associated with the uptake of internet banking (Durkin, 2004). Accessibility defines as the ability of users to access information and services from the web is dependent on many factors. These include the information technology in content format; the user's hardware, software and settings; internet connections; the environmental conditions and the user's abilities and disabilities (Godwin-Jones 2001; Hackett and Parmanto,2009). The term "web accessibility" generally relates to the implementation of website content in such a way as to maximize the ability of users with disabilities to access it. For example, providing a text equivalent for image content of a web page, allows users with some visual disabilities access to the information via a screen reader. The techniques and approaches that create more accessible web pages for people with disabilities also address many other access issues such as download speed and discoverability (Godwin-Jones 2001; Hackett et al 2004; Hackett and Parmanto, 2009).Jun et al (1999) revealed reliable/responses, attentiveness, and ease of use had considerable impacts on both customers perceived overall service quality and satisfaction. It also indicated that there is a significant positive relationship between overall service quality and satisfaction. Yang and Jun (2002) redefined the traditional service quality dimensions in the context of online services, and suggested an instrument consisting of seven online service dimensions reliability, access, ease of use, personalization, security, credibility, and responsiveness). Joseph et al (1999) considered banking service quality with respect to technology use, such as ATMs, telephone, and the internet and identified six dimensions. They were convenience/accuracy; feedback/complaint management; efficiency; queue management; accessibility; and customization. Therefore, it is

hypothesized that accessibility has positive effect on customer satisfaction.

2.2.2.1 Design

The goal of aesthetic design is to make a web site visually attractive and enjoyable. Proctor et al (2002, 2003) discussed content preparation in a broad sense and identified its four aspects: knowledge elicitation, information organization and structure, information retrieval, and information presentation. During design, and prior to implementation, it is strongly recommended that users of different ages, and with a range of capabilities and limitations be engaged to trial the new service and provide feedback. Financial institutions should test accessibility of their customer websites with both automated tools and user accessibility trials. Therefore, it is hypothesized that design has a positive effect on customer satisfaction.

2.2.2.2 Content

Jayawardhena and Foley (2000) and Pikkarainen et al (2004) claim that content on online banking on the web site is one of the factors influencing online-banking acceptance. On the other hand, quality designs, graphics or colors and the propensity to portray good image of the bank would enhance efficient use of navigation.In the context of internet banking, there is a growing body of research that has looked at influences on customer satisfaction. Jayawardhena and Foley (2000) illustrated that such web site features as speed, web site content and design, navigation, interactivity and security all influence user satisfaction whereas Broderick and Vachirapornpuk

(2002) found that the level and nature of customer participation had the greatest impact on the quality of the service experience and issues such as customers' zone of tolerance, the degree of role understanding by customers and emotional response potentially determined, expected and perceived service quality. Yang and Fang (2004) found that ease of use and usefulness are important factors in evaluating online service quality. Earlier Doll and Torkzadeh (1988) identified five quality dimensions that have an impact on "end-user" satisfaction in an online environment: content, accuracy, format, ease of use, timeliness. Thus, it is hypothesized that content has positive effect on customer satisfaction.

Speed of E-Banking and Customer Satisfaction

There is a positive association between the speed of e-banking services and customer satisfaction (Chen Hsiao and Hwang 2012; Laukkanen and Kiviniemi, 2010, p. 67). For example, the speed of download from a bank web site in relation to the content that a client is downloading must be fast enough to attract customer satisfaction. Separately, Gooraki and Shirazi (2012) argued that fear that prolonged use of online downloading banking contents through the internet might attract viruses often discourages customers from using online banking procedures (Gooraki and Shirazi 2012, p.53: Ching et al 2011).

Delayed access to services even through the use of e-banking might discourage clients since adoption of this technologies aims at improving speed, convenience and effectiveness in the provision of quality banking services (Jenkins 2013).

Slow response time following e-interaction will delay delivery of services to clients (Gerrard and Cunningham 2011). Bak and Stair (2011) confirmed this position and added that this process often makes consumers doubt the applicability and relevance of e-banking procedures. Anything that affects the speed with which customers access banking services as they require must thus be given utmost consideration so as to satisfy customers (Sukanya and Saroj 2012;Laukkanen and Kiviniemi,2010, p.67).Thus it is accurate to make a claim that speed has significant influence on customer satisfaction levels with e-banking procedures and system.

2.2.2.3 Speed

Hoffman and Novak (1996) find that there is a significant correlation between download

speed and user satisfaction. Speed of download depends on the nature of the site downloaded content, the computing hardware and method of connection used to download information (Jayawardhena and Foley, 2000). Most sites demonstration is small snapshots, and some users have to download the program in order to view the demonstration. Most people perceive downloading may import unwanted viruses, and consume hard disk space. Very often, slow response time after any e-interaction leads to a delay of service delivery and makes consumers unsure about whether or not the transaction is completed (Jun and Cai, 2001).

2.2.3 Security factor that influence customer satisfaction with e-banking

The dimension of security in e-banking procedures relates to the ability of banks in Klang Valley (Malaysia) to guarantee their customers' safety even as they adopt and use web sites for personal information and financial matters (Goi 2011). This dimension influences customer satisfaction levels given that the risks associated with e-banking are several and the losses can be huge (Supinaha 2013, p. 79). Privacy policies that enhance security must thus be rated by clients to be functionally effective. For example, the bank could enhance security of the shopping mechanisms through the e-banking and trading procedures (Nochai and Nochai 2013). This is possible through display of the logos of trusted parties in the online transactions. Pallavi (2012) argues that provision of logos of trusted third party greatly influences how potential and active consumers of e-banking procedures perceive the reliability, safety and trustworthiness of e-business procedures (p. 94).

E-banking should be made secure such that clients are not worried about the risks associated with lose of any personal information or data through web sites transactions and operations. Thus, customer satisfaction is highly improved when all online transactions are effected on a secure network server of the bank (Frank, Phillip, and Markos 2012). This confirms Miyazaki and Krishnamurthy (2012) that argued that security plays a pivotal role in e-banking processes such as secure access of customers' accounts, review of account details and history, transfer of money from one account to another, payment of bills, and other banking processes. When security is enhanced, advocacy and campaigns to promote e-banking services can be easily adopted (Ching 2011; Frederic et al 2012). Thus security of e-banking procedures is of key concern to customers and influences their satisfaction levels with electronic banking procedures. Studies have found that e-banking enhances provision of high degree of security which greatly impacts customers' satisfaction levels (Jun and Cai 2011; Poon and Tan 2008, p. 41).

Assurance about security relates to the extent to which the web site guarantees the safety of customers` financial and personal information, an area which has witnessed a proliferation of research interest (Kimery and McCord,2002; Miyazaki and Krishnamurthy, 2002). Security can be assured by providing a privacy statement and information about the security of the shopping mechanisms and by displaying the logos of trusted third parties. For example, displaying trusted third party logo guarantees a certain level of security protection and has been shown to significantly influence how consumers regard the trustworthiness of e vendors (Jiang et al, 2008). Internet banking was made possible by the creation of Web browsers. In this mode of online banking, consumers do not have to purchase additional software (all they need is the browser), store any data on their computer, backup any data, or wait for software upgrades or

new versions (Kolsaker and Payne, 2002; Dong-Her et al, 2004). All transactions occur on a secure server of a bank via the internet. The bank has all of the required data and software to execute the transactions. Customers go the bank's Web site, log in, and then take advantage of the bank's internet services. Typical bank services are account access and review, transfers of funds between accounts, bill payment, and then a widening variety of new services and products. Security plays an important role in internet banking and so there are several protocols for internet security of encrypted data packets (Kolsaker and Payne, 2002; Dong-Her et al; 2004). Customers are not aware of the encryption, however, only certain versions of popular internet browsers are

acceptable to some banks due to their security limitations (Kolsaker and Payne, 2002; Dong-Her et al; 2004). Therefore, it is hypothesized that privacy has a positive effect on customer satisfaction.

2.2.3.1 Privacy as a Factor in Customer Satisfaction with E-Banking

Most customers are always concerned with the privacy arising from the use of online banking processes. Thus, the ability of the bank to win customers' trust that they will still enjoy their privacy even after switching to e-banking is an essential determinant of customer satisfaction with e-banking (Al-Agag and Nor, 2012, p. 298). The willingness of customers to engage in online exchange of money and share personal information thus depends on the privacy that clients enjoy through e-banking. The intention of users to adopt e-banking procedures can be evaluated based on this dimension (Kuo 2013). E - Banking services in Klang Valley (Malaysia) should be backed up with encryption technology that secures the privacy of clients' information. But (Jyh-Shen and Chung-Chi 2012, p.3) cites that this must be combined with other privacy-enhancing features such as password, mother's maiden name, and automatic logging off of users whose account are inactive for realization of customer satisfaction.

To enhance customers' privacy and achieve customer satisfaction with e-banking, banks have adopted the Secure Socket Layer, especially with online credit card payment (Kuo 2013, p. 57;Curwen and Whalley 2010).This provides a private and very reliable channel between two interacting entities. Other features such as Personal Identification Number and integrated digital signature certificate associated with the use of smart card technology also enhance privacy in e-banking (Karat et al 2011). These factors help in improving customer satisfaction with e-banking procedures (Fleming, 2011, p.78). Ameen and Khalil (2012) hypothesized that integration of most of the features that enhance the privacy dimension of e-banking also plays a significant influencing role when it comes to achievement of customer satisfaction with e-banking (Aliyu and Tasmin 2012). E -banking services in Klang Valley (Malaysia) can thus be satisfying to clients if the banks consider addressing all these areas in a bid to achieve customer satisfaction with its e-banking processes (Gao 2011; Poon and Tan 2008).

Customers have doubts about the trust ability of the e-bank's privacy policies (Gerrard

and Cunningham, 2003). Trust has striking influence on user's willingness to engage in

online exchanges of money and personal sensitive information (Friedman et al, 2000;

Wang et al, 2003). Privacy is an important dimension that may affect users' intention to

adopt e-based transaction systems. Encryption technology is the most common feature

at all bank sites to secure information privacy, supplemented by a combination of

different unique identifiers, for instance, a password, mother's maiden name, a memorable date, or a few minutes of inactivity automatically logs users off the account. Besides, the Secure Socket Layer, a widely-used protocol use for online credit card payment, is designed to provide a private and reliable channel between two communicating entities; the use of Java Applet that runs within the user's browser; the use of a Personal Identification Number, as well as an integrated digital signature and digital certificate associated with a smart card system (Hutchinson and Warren, 2003). Thus, a combination of smart card and biometric recognition using fingerprints offers a more secure and easier access control for computers than the password method.

Zeithaml et al (2000) developed e-SERVQUAL for measuring the e-service quality, by notifying 11 dimensions sub factor such as access, easy to use the navigation, system efficiency, reliability and flexibility, security in term of privacy and trust and others benefit from the usage of e-banking services. Hence, it is hypothesized that privacy also has a positive influence and effect on customer satisfaction. Security, privacy, trust and risk concerns may impact consumer

internet banking choices. It was found that 80% of global phishing attacks in the first

quarter of 2005 targeted the financial services sector (IDC, 2005). From the survey by Chung and Paynter (2002) identified consumer fears regarding transaction security as an inhibitor to the adoption of internet banking. Security has also been identified as a key consumer concern in other internet banking adoption studies (e.g. Black et al., 2002; Siu and Mou, 2005). In Australia, Sathye's (1999) study highlighted consumer security fears while Ramsay and Smith (1999) found privacy to be a key consumer concern. Hain et al (2003) observed that non-internet banking consumers were more concerned about security and privacy issues than internet banking consumers. The security concern has also been recently associated more with female than male non-users (ACNielsen, 2005). Trust in the internet gained through long-term internet usage has

been found an important factor in the adoption decision (Gartner, 2003b). In the context of consumer attitudes toward internet banking systems, trust may be related to consumer judgment on security and privacy issues (Wang et al., 2003). Suh and Han (2002) found trust an important factor in consumer adoption of internet banking using a Web-based survey, while Rexha et al (2003) obtained similar results in Singapore. Security is considered to be one of the very important factors in determining the decision of consumers to use electronic banking services. Assurance about security relates to the extent to which the electronic banking guarantees the safety of customers financial and personal information, an area which has witnessed a proliferation of research interest (Kimery and McCord, 2002; Miyazaki and Krishnamurthy, 2002).

According to Arwa and Ali, (2004) the level of security or risk was another important factor that affecting the customer service delivery. It happen in other countries where e-banking been adopted or established as the factor become most important because it slowing progress of electronic banking services is the consumer concern for security of financial transactions over electronic banking. An empirical survey by Sara, (2008), of Australian consumers confirmed this fact. A key factor in customer relationships in today's business is trust Wu et al, (2010) According to R. Supinaha et al (2008), slow growth of electronic banking services is caused by security concerns, lack of trust and lack of knowledge about the availability of such a service. Hence, users find electronic banking system useful, convenient, and easy to use, while privacy of data and security measures of the electronic banking technology is the issues that bother the minds of customers. (Adesina, 2010). The same results obtained from the study of Booz et al. (1997), reveals that security concern among customers was the top-ranking obstacle for non-adoption of electronic banking in Latin America. Therefore, it is posited that security has a positive effect on customer service delivery, in the banking industry. Also, to minimize customer's security concerns, banks need to effectively educate their customers and assure them of the service's security (Fleming, 2011). Therefore, the role of security was assessed by physical access control to the machine, User authentication and authorization, confidentiality, data integrity, secure storage of user information, user's privacy protection, authentication of the parties involved.

2.2.3.2 Trust

Based on previous research, trust has been defined as a set of specific beliefs dealing primarily with the integrity, benevolence, and ability of another party (Doney and Cannon, 1997; Gefen and Silver, 1999); a general belief that another party can be trusted (Gefen, 2000; Hosmer, 1995; Moorman et al., 1992), sometimes also called trusting intentions (McKnight et al., 1998) or the willingness of a party to be vulnerable to the actions of another (Mayer et al., 1995); (3) affect reflected in "feelings"of confidence and security in the caring response of the other party (Rempel et al.,1985). Some researchers have combined the first two conceptualizations into one

construct (Doney and Cannon, 1997). Other researchers have split the first two conceptualizations, declaring the specific beliefs as antecedents of the general belief (Jarvenpaa and Tractinsky, 1999; Mayer and Davis, 1999; Mayer et al. 1995).Despite the existence of different definition of trust in previous literature, Gefen et al.(2003) adopted the conceptualization of trust as a set of specific beliefs which includes integrity, benevolence, ability and predictability to be applied in e-commerce, and specifically in the online shopping context. The definition is aligned with the past literature where it has been most widely used in studies related to ongoing economic relationships that deal with buyer-seller and business interactions(Crosby et al. 1990; Doney and Cannon 1997; Ganesan 1994; Gefen 2002; Jarvenpaa

et al. 2000). Lin and Wang (2006) who conducted their study in an m-commerce context have adopted the same view by defining trust as a set of specific beliefs dealing primarily with the integrity (trustee honesty and promise keeping), benevolence (trustee caring and motivation to act in the truster's interest), competence (ability of trustee to do what the truster's needs) and predictability (trustee's behavioral consistency) of a particular m-vendor. The definition of trust as a specific set of beliefs is adopted in this study as the Internet banking website context is a part of ecommerce which deals with buyer-seller and business transactions.

2.2.3a Relationship between Trust and Customer Loyalty

Trust is expected to affect customers' willingness to purchase online; online

customers generally stay away from electronic vendors whom they do not trust

(Jarvenpaa and Tractinsky, 1999; Reichheld and Schefter, 2000). Conversely, Chiou

(2004) found that perceived trust had direct and positive impacts upon the loyalty of

customers. This was supported by a study by Corbitt et al. (2003) on online firms

which demonstrated there is a strong positive effect of trust on loyalty. Moreover,

Ribbink et al. (2004) investigated the role of customer evaluations of electronic service

and e-trust in explaining customer loyalty to online retailers. The findings showed that etrust directly and positively affects e-loyalty.

2.2.3.3 Loyalty

Oliver (1999, p. 34) defines loyalty as "a deeply held commitment on repeated buying or repurchase a preferred product and service consistently in the future, thereby causing repetitive same set of brand, despite the there is a situational influences factor and different way of marketing efforts having the potential to cause switching behavior". Broadly,loyalty development has been an objective traditionally aimed at by managers (Andreassen, 1999) since it enables higher future purchase intention. In particular, loyalty may be defined as a customer's intention or predisposition to purchase from the same organization again (Edvardsson et al, 2000), that result from the conviction that the value received from one seller is greater than the value available from other alternatives (Hallowell, 1996). As a consequence, loyalty has been considered to be a key factor in order to achieve company success and sustainability over time (Flavián et al, 2006; Keating et al, 2003), lower price sensibility (Lynch and Ariely, 2000) and more stable and bigger incomes (Knox and Denison, 2000). Therefore, it is one of the sub factor that has the influence customer satisfaction toward e-banking services.

2.2.4a Fees Charged, Service Quality and Customer Satisfaction with E-Banking

Customer satisfaction with the quality of e-banking processes must be measured against the backdrop of any fees associated with the electronic banking processes (Hall 2011, p. 4). The ability of Malaysian banks to offer high quality services that meet clients' needs at relatively reduced or lower charges makes e-banking popular among its users (Sharma and IGI Global, 2013). The administrative and operational costs of human service are reduced with the activation of e-banking services. Johnston (2012) cited that e-based banks should thus be able to offer quality services at lower costs or at no service fees to users. This, according to Ma (2012), has the potential of increasing customer satisfaction.

Adoption of e-banking procedures is very likely if such a move allows customers to access banking services easily, conveniently, in a secure way and cheaply (Liberati and Mariani, 2012, p.112; Burrow and Bosiljevac 2012). However, all these could be futile if e-banking fails to improve customers' satisfaction with the quality of services provided (Pikkarainen, Pikkarainen, Karjaluoto and Pahnila 2012, p. 54). Ian (2012) asserts that customers are, therefore, likely to embrace e-banking and register their satisfaction with its implementation if the decision ensures improved quality of banking services in the banks in Klang Valley (Malaysia). Other studies have concluded that fees and charges associated with e-banking affect customer satisfaction levels The use of e-banking is thus likely to be satisfying if customer perceive it as a way of reducing bank fees and charges (Sukanya and Saroj 2012, p. 82; Megha and Popli 2012).

2.2.4 Fee & Charges factor influence customer satisfaction e-banking

Customer service delivery attributes in the electronic banking industry are important, in view of the fact that online banking, mobile banking and ATM interaction are the main sources of service delivery. Therefore, offering high quality services to satisfy consumers' needs, at lower cost and fees, will be the potential competitive advantage of electronic banking sustainability and growth in the future. At present, studies show

that electronic banking has successfully reduced operating and administrative cost and fees (Ahmad, 2011;Migdadi, 2008; Suganthi, 2010 and Bankole et al, 2011) while at the same time research has proven that, cost and fees savings have helped e-based banks offer lower or no service cost/fees (Ahmad, 2008). Cost was once considered as the major competitive priority and a key aspect for the future development in every organization (Burgess, 1998). Prior research has empirically found a positive relationship between cost/fees and customer service delivery as a critical factor with the use of electronic banking (Ching et al, 2011 ad Khumbula, 2010). On the same note, the cost/fees determine by e-base banks are an important element to facilitate the usage of electronic banking which is reflected in the customer service delivery. According to Peter Drucker (1985), electronic banking is the answer to reduce cost and fees, and to solve the tension between sustainability and reaching the very poor. This means that, by creating new channels of delivering financial services at low cost, banks may find that these customers, who once seemed beyond the frontier of formal financial services, are in fact a profitable and attractive market. To this extent Mazursky et al., (1987) identified cost and fees as the major factor in brand switching of customer over a giving period of time. Hence, it is assumed that fees and charges have a positive significant influence on the adoption and customer service delivery. The roles of cost/fees were assessed by measuring: reasonable electronic bank's charges and lower transaction fees. Therefore, if customers are to use electronic banking, then electronic banking must be reasonably cost and fees relative to alternatives. Otherwise, the acceptance of e-banking services is left behind from the viewed of the customers.

Service quality attributes in e-banking industry are important since human-internet interaction is the main service delivery and communication channel. Offering high quality services to satisfy consumers' needs, at lower costs, are potential competitive advantage of e-banking. Some studies show that e-banking has successfully reduced operating and administrative costs (Devlin, 1995; Siriluck and Speece, 2003). Cost savings have helped e-based banks offer lower or no service fees, and offer higher interest rates on interest-bearing accounts than traditional banks (Gerlach, 2000; Jun and Cai, 2001). Therefore, it is hypothesized that fees and charges have positive

impact on customer satisfaction.

2.2.5 Service Quality factor influence customer satisfaction

For the past years, customer experience has become a main concept and tool in service research and management. Since that more research about consumer behavior has an experiential dimension (Holbrook and Hirschman, 1982), the academics and practitioners have move forward in recognized that a need for a deeper understanding of the role of customer experiences in key marketing phenomena (Edvardsson et al., 2005; Tynan and McKechnie, 2009). The service researchers have approached experience in different ways: as a subjective, internal experience (phenomenon), as a process or understanding service experience as one of key element in models linking a number of variables or attributes to various outcomes (Helkkula, 2011). The service experiences have been studied particularly in connection with concepts such as service quality and value, service encounter, service process, and service relationships.

The research perspective to service experience has evolved from studying the internal, hedonic, or extraordinary experience by the individual consumer toward studying

experience as a collective, co-created phenomenon, which is not limited to a specific

actor, such as a customer, or a specific event in the service process, such as a service

encounter (Arnould and Price, 1993; Helkkula et al., 2012). Especially the

phenomenological approach to service experience has affected the way we think about

business in general, shifting the focus from the production of outcomes to how they are

uniquely and contextually interpreted and experienced by the individual (Vargo and

Lusch, 2008). The service experiences emerge from interaction between actors (Ballantyne and Varey, 2006; Ramaswamy, 2010). The interaction processes forming service relationships are often lengthy and iterative, requiring reciprocal contributions by the parties (Aarikka-Stenroos and Jaakkola, 2012; Grönroos and Ravald, 2011). In contemporary markets, interaction is increasingly taking place not only in provider-customer dyads, but also between networks of actors: customers share and co-create experiences collectively in communities organized around shared interests (Cova and Dalli, 2009; Schau et al., 2009), and providers collaborate with their network of suppliers and partners who each contribute to the customers' experiences (Hakanen and Jaakkola, 2012). Particularly in the service field, networks function as platforms for seeking information about other actors' past experiences with certain providers or offerings, communicated through e.g. word of mouth, customer referencing, user communities, and social media like facebook, twitter ,forums and others new communication tool that enable sharing and co-creating service experiences extensively and it increasingly a system-level phenomenon. Experience as a concept has its background in economics, consumer behavior, psychology, sociology, marketing, and managerial practice (Klaus and Maklan, 2012). While various streams of research pay attention to the networked, social aspect of experiences and highlight the relevance of co-created service experience, current service research still lacks integrative, profound and structured knowledge on the topic. Given the centrality of service experience, it is vital that contemporary research deepens and extends understanding on the phenomenon of service experience. Therefore, the special issue seeks to offer a forum for the diverse approaches to service experience and aggregate the current knowledge on the topic. Academic literature and industrial reports specifically in the customer contact centers where, through computerized telephonic integration, fax, email, web chatting etc., the process has helped in accruing and digitalizing staff's knowledge on customers' vital data (Abdullateef, Mokhtar, Yusoff, 2011). An organizations' ability to deliver a superior service quality has been established as a prerequisite for its success and survival in the current world of business and bargains; this success is said to be, directly, dependent on customer satisfaction and, indirectly, an outcome of the quality of service delivered (Zeithaml, 1985, Cronin and Taylor, 1994, Abdullateef, Mokhtar, Yusoff, 2011). If efficiently managed, CRM system has the capacity to assist organizations in handling customer queries and complaints more professionally. It will, however, deliver to its customers both accurate and timely information, increasing its job performance and multiplying its service quality and customer satisfaction (SQM, 2007; 2005).Service quality, in the context of offline and online services, has received considerable attention within the literature. Generally, service quality has been identified as consumers' comparison between service expectation and service performance ( Parasuraman et al.1985), as well as the subjective comparison that customers make between the quality of service that they wish to receive and what they actually get (Gefen, 2002). Research into the importance of service quality within the banking industry identifies service quality as a critical factor in influencing satisfaction (Blanchard & Galloway, 1994; Grönroos, 2000; Hume & Mort, 2008; Lovelock & Wirtz, 2007; Zeithaml & Bitner, 2006), profitability ( Heskett, Sasser & Schlesinger, 1997; Hinson,Mohammed, & Mensah, 2006) and a key indicator of companies competitiveness

(Kotler & Keller, 2006; Grönroos2001; Voss, 2003; Voss, et al., 2004). Takingthis point further, service quality is considered as a competitive tool which is crucial for corporate profitability and survival ( Newman & Cowling, 1996;Rosen, Karwan, & Scribner, 2003; Lewis & Pescetto, 1996). Service quality is determined by the total utility received by the beneficiary of the service. This represents the benefits package that he receives from the core and supplementary services. The consumer assesses the service quality by comparing his perceived mental image of the service which he constituted from information obtained via promotions, personal experiences, and the experiences of friends, family and all those around him, with the level of satisfaction that he receives. As failing to achieve the required satisfaction will prompt consumers to abstain from purchasing the service and to purchase services provided by the competition, service quality is correlated with the organization's service capability of achieving a level of customer satisfaction that surpasses his expectations ( ALsamydai and Rudaina 2005). (Dee 2009) indicates that the concept of service quality is centered around the benefits obtained by the consumer of the service, while (Berry et al 1995) find that service quality depends on the current and past experiences of the customer with the services that benefited him, which is the main principle in evaluating the service based on the perceived quality of the service. Furthermore, the more satisfaction is achieved; the more the mental image will be enhanced, thus encouraging individuals to repeated purchases (Alsamydai and Rudaina 2003). Repeated purchases are the result of the total utility received by the consumer which determines the service quality from the viewpoint of the consumer. In a similar vein, and moving to the online context, several studies found that there is a strong relationship between e banking service quality and customer satisfaction with such service (Pham, 2010; Khalifa & Liu, 2002; 2003; Khalifa & Shen, 2005; Shneiderman, 1998; Saha & Zhao, 2006; Chou & You, 2005). For example, a number of researchers found that specific website e-services can positively affect customer satisfaction with website and online purchasing in the long run ( Khalifa & Liu 2002, 2003;Khalifa & Shen, 2005). Moreover, Shneiderman (1998) found a positive relationship between the subjective satisfactions of a user from the use of information technology. That is, a user's subjective satisfaction is influenced by different perceived quality characteristics of the technology, such as ease of use and perceived usefulness. In addition, a research conducted by Feinberg, Khalifa & Liu (2002) and the research on Internet banking by Saha & Zhao (2006) clearly concluded that some dimensions of e service quality are positively correlated with the customer satisfaction. In particular, security and site aesthetics of e-service quality were positively correlated with the customer satisfaction (Chou & You (2005).

Service quality has become an issue that businesses have focused up on with eservices that enable electronic communication; information gathering, transaction processing and data interchange between online vendors and customers across time and space (Featherman and Pavlou, 2002).

In online environments, service quality is defined as the extent to which a website facilitates efficient and effective shopping, purchasing, and delivery of product and services (Zeithaml et al.,2002). Santos (2003) described e-service quality in terms of overall customer evaluations and judgments regarding the excellence and the quality of e-service delivery in the virtual marketplace.A study by Parasuraman et al. (2005) on the According to Cristobal et al. (2007) further developed a service quality scale which consists of multidimensional constructs of web design customer service, assurance and order management. Hence service quality is one of the factor that influence customer satisfaction.

Customer satisfaction is significantly influenced by the adoption of e-banking processes. The level of satisfaction, however, depends on several factors associated with the introduction and implementation of e-banking procedures. These include the convenience, privacy, security, speed, costs and charges, and accessibility of banking services as affected with implementation of e-banking processes. Therefore, the introduction and implementation of e-banking in Malaysia has great implications on customer satisfaction. Higher satisfaction levels are achievable if the various dimensions explored in the paper are strengthened and made more effective as required.