E-service quality dimensions influencing customer satisfaction and intention to re-use Internet banking among Internet users in Sedibeng

Abstract

Advances in technology and technologically-based banking impact service delivery options and approaches within service industries, leading to the active pursuit of e-banking as a key method of service provision. Compared with physical banking, Internet banking offers convenience to customers, 24/7 accessibility and fast transactions. Businesses commonly rely on the customers, which means the profitability of any business changes depending on customer demand. Due to that, it is necessary to treat customers as the central factor of the market since customer satisfaction is very critical to a firm’s business performance. Understanding what drives customers’ repeat behaviour is an important factor in the current competitive market. As a result, banks have moved from a service-centric to a customer-centric position. Web-based self-service has further magnified the importance of service sector roles in modern economies. One such new challenge is the quality of the electronic service provided by the banking institution’s website. It is unclear what drives customers to re-use Internet banking services. As a result, many researchers have attempted to identify different factors of service quality affecting Internet banking re-use intention with contradicting findings and fragmented factors. In this regard, this study aimed to investigate e-service quality dimensions that influence the use of Internet banking in Sedibeng, South Africa. Using e-service quality, five dimensions (information quality, web quality, web privacy, efficiency-system availability, and ease of use) were tested based on customer e-satisfaction and re-use intention.

This research adopted a quantitative approach, utilizing both descriptive and correlational research designs, particularly emphasising a single-cross-sectional design. The study targeted Internet banking users from the five major banks in South Africa (FNB, ABSA, STD Bank, Nedbank, and Capitec), encompassing participants of diverse genders and racial backgrounds. A non-probability convenience sampling method was applied to identify respondents who met predetermined sample criteria. A total of 274 questionnaires were collected and subjected to analysis. The research detailed relevant areas, research methodologies, and data acquisition procedures. Data analysis involved the use of SPSS version 27.0 software and included descriptive statistics, Exploratory Factor Analysis (EFA), correlation analysis, psychometric properties results, and regression analysis to assess the formulated hypotheses.

The study found that information quality, web quality, web privacy, efficiency-system availability and ease of use are predictors of e-satisfaction. In addition, customer e-satisfaction was found to be a strong predictor of intention to re-use Internet banking. These relationships were statistically significant and all the dimensions explained 59.1 percent of variance on customer e-satisfaction, while satisfaction explained 74.5 percent of variance on intention to re-use Internet banking. For banking institutions, strategic recommendations emerge that web service quality dimensions are central to achieving organisational outcomes such as satisfaction and profitability. By diligently considering these dimensions, banks can enhance satisfaction and re-use intention. Retail banking institutions should allocate and devote their resources to these web service quality dimensions to stimulate and strengthen satisfaction, thus enhancing the intention to re-use Internet banking services. Based on these findings, limitations were outlined together with the recommendations and conclusions.