Week 4 - Literature Review

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Information Systems

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Nov 24, 2024

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Customer satisfaction in banking systems 1 Effect of banking services that might raise the customer satisfaction. Literature Review The study examines the relationship between e-banking service quality and customer satisfaction in the Lebanese banking sector. The researchers gathered data through a survey distributed to bank clients and analyzed it using structural equation modeling. The findings show that reliability, efficiency, ease of use, responsiveness, communication, security, and privacy all have a significant impact on customer satisfaction, with reliability having the strongest impact. The study highlights the importance of understanding the dimensions of service quality that have the greatest influence on customer satisfaction in order for banks to focus on meeting customer needs. The background literature reviewed in the study is relevant to the study's purpose. The literature review provides an overview of the importance of E-Banking services and the factors that influence customer satisfaction in the banking sector. It discusses the historical development of E-Banking, the dimensions of service quality, and the impact of technology on customer satisfaction. The literature review also highlights the gap in research regarding E-Banking in the Lebanese banking sector, which the study aims to address. Overall, the literature review provides a comprehensive understanding of the research area and supports the study's purpose. The study addresses four hypotheses related to the impact of E-Banking service quality on customer satisfaction in the Lebanese banking sector. The hypotheses are as follows: Hypothesis 1, The efficiency of E-Banking services positively affects customer satisfaction. Hypothesis 2, The reliability of E-Banking services positively affects customer satisfaction. Hypothesis 3, The security and privacy of E-Banking services positively affects customer satisfaction. Hypothesis 4, The responsiveness, and communication in E-Banking service positively affects customer satisfaction. (Hammoud et al., 2018)

Customer satisfaction in banking systems 2 The study used a quantitative approach and collected data through a survey distributed to bank clients in Lebanon. The survey consisted of two parts. The first part measured customer perceptions about the variables under study, such as efficiency, reliability, security and privacy, and responsiveness and communication, using a Likert-type scale. The second part collected personal data from the respondents, such as age, gender, qualifications, income, and period and frequency of E-Banking usage, which were used as control variables. The survey was distributed to bank clients who visited the branches of participating banks and agreed to complete the survey. It was also posted online through Google Survey Form and shared on social media platforms to increase participation. A total of 258 usable surveys were collected and analyzed. The study used structural equation modeling (SEM) with AMOS software to analyze the data. The measurement model assessed the reliability and validity of the constructs, including composite reliability, convergent validity, and discriminant validity. The structural model examined the relationships between the independent variables (efficiency, reliability, security and privacy, and responsiveness and communication) and the dependent variable (customer satisfaction). The study tested four hypotheses related to the impact of E-Banking service quality on customer satisfaction. The results supported all four hypotheses, indicating that efficiency, reliability, security and privacy, and responsiveness and communication all have a positive influence on customer satisfaction. Overall, the study used a survey-based approach and statistical analysis to examine the relationship between E-Banking service quality and customer satisfaction in the Lebanese banking sector.

Customer satisfaction in banking systems 3 The study used convenience sampling as the primary method to gather data from bank clients in Lebanon. Surveys were distributed to the branches of banks that agreed to participate in the study, and clients who visited these branches and agreed to complete the survey were included in the sample. Additionally, the survey instrument was posted online through Google Survey Form and shared on social media platforms like Facebook to increase participation and diversify the pool of respondents. This allowed for a larger and more diverse sample of bank clients to be included in the study. In total, 258 usable surveys were collected and analyzed. The participants in the study are described in adequate detail. The study collected data from bank clients across different banking institutions in Lebanon. The sample consisted of 258 respondents, with males constituting 49.2% and females constituting 50.8% of the sample. The age distribution of the respondents was also provided, with 32.2% being less than 25 years old, 47.7% between 26 and 35 years old, and the remaining percentage being older than 36 years. The study also collected information on the length of E-Banking usage and the frequency of E- Banking services usage. Overall, the description of the participants provides relevant demographic information that helps understand the sample characteristics. The sampling method used in the study, which was convenience sampling, was appropriate to the study purpose. Convenience sampling involves selecting participants based on their availability and willingness to participate, which aligns with the study's goal of gathering data from bank clients who visited the branches and agreed to complete the survey. Additionally, the survey instrument was also posted online and shared on social media platforms to increase participation and diversify the pool of respondents, which further supports the use of

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Customer satisfaction in banking systems 4 convenience sampling. Overall, the sampling method allowed for the collection of data from a diverse pool of respondents and was suitable for the study's objectives. Reliability and validity are important concepts in research methodology, and they were assessed in the study to ensure the quality and accuracy of the data collected. Reliability refers to the consistency and stability of measurement. In the context of this study, reliability was assessed through composite reliability (CR), which measures the internal consistency of the construct scales used in the survey instrument. The CR scores in Table 3 of the study exceeded the recommended threshold of 0.7, ranging between 0.83 and 0.93. These scores indicate that the scales used in the survey were reliable and consistent in measuring the constructs of efficiency, reliability, safety and privacy, responsiveness and communication, and customer satisfaction. Validity, on the other hand, refers to the extent to which a measurement accurately measures what it is intended to measure. In the study, convergent validity and discriminant validity were assessed. Convergent validity was evaluated through standardized factor loadings, which measure the extent to which indicators of a construct converge on that construct. All factor loadings, after eliminating items with low loadings, were above the suggested cutoff of 0.5, ranging between 0.68 and 0.92. This indicates that the indicators of each construct were converging on their respective constructs, demonstrating adequate convergent validity. Discriminant validity assesses whether the constructs under study are distinct from each other. In the study, discriminant validity was verified by checking that the average variance extracted (AVE) values exceeded the recommended cutoff of 0.5. The AVE values ranged between 0.62 and 0.74, indicating that there were no issues of discriminant validity with the constructs. Overall, the study demonstrated that the measurement model had adequate reliability and

Customer satisfaction in banking systems 5 validity. The high CR scores, factor loadings, and AVE values indicate that the measurement scales used in the survey were reliable and valid in measuring the constructs of interest. The findings of the study indicate that there is a significant relationship between E- Banking service quality and customer satisfaction in the Lebanese banking sector. The study found that efficiency, reliability, security and privacy, and responsiveness and communication all have a positive impact on customer satisfaction. Among these dimensions, reliability was found to have the strongest influence on customer satisfaction. The study also highlighted the importance of understanding customer expectations and meeting their needs in order to enhance customer satisfaction. Overall, the findings suggest that banks in Lebanon should focus on improving service quality, particularly in terms of reliability, to enhance customer satisfaction with E-Banking services. The study concluded that there is a significant relationship between E-Banking service quality and customer satisfaction in the Lebanese banking sector. The findings showed that reliability, efficiency, ease of use, responsiveness and communication, security, and privacy all have a significant impact on customer satisfaction. Among these dimensions, reliability was found to have the strongest influence on customer satisfaction. The study also highlighted the importance of understanding customer expectations and meeting their needs in order to enhance customer satisfaction. The findings suggest that banks in Lebanon should focus on improving service quality, particularly in terms of reliability, to enhance customer satisfaction with E- Banking services.

Customer satisfaction in banking systems 6 References Hammoud, J., Bizri, R., & Baba, I. (2018). The Impact of E-Banking Service Quality on Customer Satisfaction: Evidence From the Lebanese Banking Sector. SAGE Open , 8 , 215824401879063. https://doi.org/10.1177/2158244018790633

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Week 4 - Literature Review

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