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International Journal of Contemporary Business Studies
Vol: 4, No: 6 JUNE, 2013 ISSN 2156-7506
Available online at http://w w w.akpinsight.webs.com
advantages to banks offered by online banking such as mass customization to suit the likes of
each user, innovation of new products and services, more effective marketing and
communication at lower costs (Tuchilla, 2000), development of non-core products such as
insurance and stock brokerage as an expansion strategy, improved market image, better and
quicker response to market evolution (Jayawardhena and Foley, 2000). Wise and Ali (2009)
argued that many banks want to invest in ATMs to reduce branch cost since customers prefer to
use them instead of a branch to transact business. The financial impact of ATMs is a marginal
increase in fee income substantially offset by the cost of significant increases in the number of
customer transactions. The value proposition however, is a significant increase in the intangible
item "customer satisfaction". The increase translates into improved customer loyalties that result
in higher customer retention and growing organization value. Internet banking is a lower-cost
delivery channel and a way to increase sales.
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2.4 Customer satisfaction and service quality
Since customer satisfaction has been considered to be based on the customer‟s experience on a
particular service encounter, (Cronin & Taylor, 1992) it is in line with the fact that service
quality is a determinant of customer satisfaction, because service quality comes from outcome of
the services from service providers in organizations. Another author stated in his theory that
“definitions of consumer satisfaction relate to a specific transaction (the difference between
predicted service and perceived service) in contrast with „attitudes‟, which are more enduring
and less situational-oriented,” (Lewis, 1993, p. 4-12) This is in line with the idea of Zeithaml et
al (2006, p. 106-107). Regarding the relationship between customer satisfaction and service
quality, Oliver (1993) first suggested that service quality would be antecedent to customer
satisfaction regardless of whether these constructs were cumulative or transaction-specific.
Some researchers have found empirical supports for the view of the point mentioned above
(Anderson & Sullivan, 1993; Fornell et al 1996; Spreng & Macky 1996); where customer
satisfaction came as a result of service quality. In relating customer satisfaction and service
quality, researchers have been more precise about the meaning and measurements of satisfaction
and service quality. Satisfaction and service quality have certain things in common, but
satisfaction generally is a broader concept, whereas service quality focuses specifically on
dimensions of service. (Wilson et al., 2008). Although it is stated that other factors such as price
and product quality can affect customer satisfaction, perceived service quality is a component of
customer satisfaction (Zeithaml et al. 2006, p. 106-107). This theory complies with the idea of
Wilson et al. (2008) and has been confirmed by the definition of customer satisfaction presented
by other researchers. The below figure shows the relationship between customer satisfaction and
service quality. The author presented a situation that service quality is a focused evaluation that
reflects the customer‟s perception of reliability, assurance, responsiveness, empathy and
tangibility while satisfaction is more inclusive and it is influenced by perceptions of service
quality, product quality and price, also situational factors and personal factors. (Wilson, 2008, p.
78). Yang (2001) found a positive relationship between online quality service and customer
satisfaction based on five dimensions of e-service quality: care/help, ease of use, reliability, and
product portfolio. Mobarek (2007) in his study about e-banking and customer satisfaction proved
that customers are generally satisfied with e-banking services as a whole. Nupur (2010) arrived
at the conclusion that there is a relationship between customer satisfaction and in e-banking and
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