Journal of Advances in Economics and Finance

Download PDF (279.8 KB) PP. 149 - 159 Pub. Date: August 1, 2017

DOI: 10.22606/jaef.2017.23001

• I.O. Aishatu
  Department of Economics1, Faculty of Economics and Management Universiti Putra Malaysia, 43400 Serdang, Malaysia
• G.C. Lim^*
  Department of Business Administration2, Faculty of Management, Universiti Teknologi Malaysia, 81310 Skudai Johor, Malaysia

Easy accessibility of information on banking activities has enabled customers to easily compare various bank products and thereby easily switch from one bank to another, resulting in diminishing customer loyalty. This results in retail banks continually working hard to make new innovations or improve their internet banking services in order to make their bank a better choice for the customer. Previous researches have shown that customer loyalty is essential for the survival and profitability of e-commerce. We investigate whether customers’ trust, satisfaction, commitment, bank reputation, and the bank’s website quality predict customer e-loyalty in a survey using structured questionnaire. Ordered logistic regression analysis was used to analyse the data. The results of the study revealed that bank reputation, satisfaction, trust, and commitment have a significant and positive impact on customer e-loyalty towards internet banking in Nigeria. However, website quality has a positive but insignificant influence on customer e-loyalty towards internet banking. The result further showed that reputation is an essential factor in building customer e-loyalty.

E-loyalty, reputation, satisfaction, trust, commitment, website quality

[1] E.E., Ibrahim. “Customer perception of electronic service delivery in the UK retail banking sector”. International Journal of Banking Marketing, vol. 24, no. 7, pp. 475-493. 2006.

[2] S.S. Srinivasan, R. Anderson, and K. Ponnavolu. Customer loyalty in e- commerce: An exploration of its antecedents and consequences. Journal or Retailing, vol. 78, no. 1, pp. 41-50. 2002.

[3] F.F. Reichheld and P. Schefter. “E-loyalty: your secret weapon on the web”. Harvard Business Review, vol. 78, pp. 105-133. 2000.

[4] C.K. Ayo, J.O. Adewoye, and A.A. Oni. “The State of e-Banking Implementation in Nigeria: A Post-Consolidation Review”. Journal of Emerging Trends in Economics and Management Sciences, vol. 1, no. 1, pp. 37-45. 2010.

[5] M.E. Auta. “E-banking in Developing Economy: Empirical Evidence from Nigeria”. Journal of Applied uantitative Methods, vol. 5, no. 2. 2010.

[6] R.O. Salawu and M.K. Salawu. “The emergence of internet banking in Nigeria: An appraisal”, Information Technology Journal, vol. 6, no. 4, pp.490-496. 2007.

[7] O.S. Oyewole, M. Abba, J.G. El-maude, and I.A. Arikpo. “E-banking and Bank Performance: Evidence from Nigeria”. International Journal of Scientific Engineering and Technology, vol. 2, no. 8, pp. 766-771. 2013.

[8] S. A. Ojeka, and O.A. Ikpefan. “Electronic Commerce, Automation and Online Banking in Nigeria: Challenges and Benefits”. Available: http://www.iiuedu.eu/press/journals/sds/SDS_2011/BME_Article5.pdf. 2011.

[9] S.A. Aminu. “Empirical investigation of the effect of relationship marketing on Banks’ customer loyalty in Nigeria”. Interdisciplinary Journal of contemporary Research in Business, vol. 4, no. 6. 2012.

[10] M. A. Al-Agaga and M. N. Khalil. “Factors that influence E-loyalty of Internet banking users”. International journal of electronic commerce studies, vol. 3, no. 2, pp. 297- 304. 2012.

[11] E.Toufaily, L. Ricard, and J. Perrien. “Customer loyalty to a commercial website: Descriptive meta-analysis of the empirical literature and the proposal of an integrative model”. Journal of Business Research, doi: 10.1016/j.jbusres.2012.05.011. 2012.

[12] F.F. Reichheld, R.G. Markey Jr and C. Hopton. “E-Customer Loyalty – Applying the Traditional Rules of Business for Online Success”. European Business Journal, vol. 12, no. 4, pp. 173-179. 2000.

[13] A. Bryant and B. Colledge. “Trust in the Electronic Commerce BusinessRelationship”. Journal of Electronic commerce research, vol. 3, no. 2, pp. 32-39. 2002.

[14] B. Lewis and M. Soureli. “The antecedent of customer loyalty in retail Banking”, Journal of consumer behaviour vol.5, no. 1, pp. 15-31. 2006.

[15] R.C. Mayer, J.H. Davis, and F.D. Schoorman. “An integrative model of organizational trust”. Academy of Management review, vol. 20, pp. 709-734. 1995.

[16] R. Amit and C. Zott. “Value creation in e-business”. Strategic Management Journal, vol. 22, no. 6/7, pp. 493-520.2001.

[17] D. Ribbink, A.C.R. Van Reil, and V. Liljander. “Comfort your onlinecustomers: quality, trust and loyalty on the internet”. Management Services Quality, vol. 14, no. 6, pp. 446-456. 2004.

[18] N. Ndibusi. “Relationship Marketing and Customer loyalty”. Marketing Intelligence and planning, vol. 25, no. 1, pp.98-106. 2007.

[19] D. H. McKnight and N. L. Chevany. “What trust means in E-commerce customer relationship: an interdisciplinary conceptual typology”. International journal of electronic commerce vol. 2, pp. 35-59. 2002.

[20] M.K.O. Lee and E. Turban. “A trust model for consumer internet shopping”. International Journal of electronic commerce, vol. 6, pp. 75-91. 2001.

[21] Y. Pan, S. Sheng, and F.T. Xie. “Antecedents of Customer Loyalty: An Empirical Synthesis and Re-examination”. Journal of retailing and consumer services, vol. 19, pp. 150-158. 2012.

[22] L. Yuan-shun. “A model of customer e-loyalty in online banking”. Economics bulletin, vol. 29, no. 2, pp. 892-903. 2009.

[23] A. Floh and H. Treiblmaier. “What keeps the e-banking customer loyal? A multigroup analysis of the moderating role of consumer characteristics on e-loyalty in the financial service industry”. Journal of Electronic Commerce Research, vol. 7, no. 2, pp. 97-110. 2006.

[24] S. Devaraj, M. Fan, and R. Kohli. “Antecedents of B2C Channel Satisfaction And Preference: Validating E-Commerce Metrics”. Information Systems Research, vol. 13, no. 3, pp. 316-333. 2002.

[25] A. Beerli, J. Martin, and A. Quintana. “A model of customer loyalty in the Retail banking market”. European Journal of marketing, vol. 38, no 1/2, pp. 253-275. 2004.

[26] A. Bhattacherjee. “Understanding information system continuance: An Expectation-confirmation model”. MIS Quarterly, vol. 25, no. 3, pp. 351-370. 2001.

[27] R. E. Anderson and S. S. Srinivasan. “E-Satisfaction and E-Royalty: A Contingency framework”. Psychology and Marketing 20(2): pp. 123-138. 2003.

[28] T. Brain. “Four rules of customer satisfaction and building customer loyalty. Business success”. Available: http://www.briantracy.com/blog/business-success/four-rules-customer-satisfaction-customer-loyalty. 2012.

[29] M.I. Eid. “Determinant of e-commerce customer satisfaction, trust, and loyalty in Saudi Arabia”. Journal of Electronic commerce Research, vol. 12, no. 1, pp. 78-93. 2011.

[30] H. Lin and Y. Wang. “An examination of the determinant of customer loyaltyin mobile commerce context”. Journal of information and management vol. 43, pp. 271-282. 2006.

[31] N. Nguyen and G. Leblanc. “Corporate image and corporate reputation in customers' retention decisions in services”. Journal of Retailing and Consumer services, vol. 8, no. 4, pp. 227-236. 2001.

[32] F. Bensebaa. “The impact of strategic actions on the reputation building of e-Businesses”. International Journal of Retail & Distribution Management, vol. 32, no 6, pp. 286-301. 2004.

[33] L. Casalo, C. Flavian, and M. Guinaliu. “The Role of Perceived Usability, Reputation, Satisfaction and Consumer Familiarity on the Website Loyalty Formation Process”. Computers in Human Behaviour, vol. 24, no. 2, pp.325-345. 2008.

[34] C. J. Fombrun. Reputation: Realizing value from the corporate image. Boston, MA: Harvard Business School Press.1996.

[35] I. Geyskens, J-B.E.M. Steenkamp, L.K. Scheer, and N. Kumar. “The effect of trust and interdependence on relationship commitment: A trans-Atlantic study”. International Journal of Research in Marketing, vol. 13, no. 4, pp. 303–317. 1996.

[36] J. J. Wu, Y. H. Chen, and Y. S. Chung. “Trust factors influencing online community members: A study of transaction communities”. Journal of Business Research, vol. 63, no. 9–10, pp. 1025–1032. 2009.

[37] G. Fullerton. “How commitment both enables and undermines marketing Relationships”. European Journal of Marketing, vol. 39, no. 11-12, pp. 1372-1388. 2005.

[38] A. Mukherjee and P. Nath. “Role of electronic trust in online retailing: A re-examination of the commitment-trust theory”. European Journal of Marketing, vol. 41 (9/10), pp. 1173-202. 2007.

[39] C. H. Park and Y. G. Kim. “Identifying Key Factors Affecting Consumer Purchase behaviour in an online shopping context”. International journal of retail and distribution management, vol. 31, no. 1, pp. 16-29. 2003.

[40] D. Gilliland and D. Bello. “The two sides to attitudinal commitment: The effect of calculative and loyalty commitment on enforcement mechanisms in distribution channels”. Journal of the Academy of Marketing Science, vol. 30, no. 1, pp. 24-43. 2002.

[41] B. Cater and V. Zabkar. “Antecedents and consequences of commitment in Marketing research services: The client's perspective”. Industrial Marketing Management, vol. 26, no. 3, pp. 245-54. 2008.

[42] G. Walsh, T. Hennig-Thurau, K. Sassenberg, and D. Bornemann. “Does relationship quality matter in e-service? A comparison of online and offline retailing”. Journal of Retailing and Consumer Services, vol. 17, pp. 130-142. 2010.

[43] P. Ponirin and T. von der Heidt. “Modelling the complexity of e-loyalty: the role of e-value, e-trust, e-satisfaction and e-commitment”. Proceedings of the Australian and New Zealand Marketing Academy (ANZMAC) Conference. 28-30 November, Edith Cowan University, Perth, WA. ISBN: 9780646563305.2011.

[44] C. H. Liang, J. J.Chen, and W. F. Wang. “Does online relationship marketing enhance customer retention and cross-buying?” Service Industries Journal, 28(6): 769-787. 2008.

[45] S. Ganapathy, C. Ranganathan, and Sankarannayanan. “Visualization Strategies and Tools for Enhancing Customer Relationship Management”. Communications of the ACM, Vol. 47(11): 93-99. 2004.

[46] H.P. Lu and J. C.C. Lin. “Predicting customer behaviour in the market-space: A study of Rayport and Sviokla's framework”. Information and Management, 40:1-10. 2002.

[47] B. Billy, L. Rob, and W. Ivan. “Impact of website quality on customer satisfaction and purchase intention: Evidence from Chinese online visitors”. International Journal of hospitality management, vol. 27, no. 3, pp. 391-402. 2008.

[48] D. Gefen. “E-commerce: The Role of Familiarity and trust. Omega”. The International journal of management science, vol. 28, no. 6, pp. 725-737. 2000.

[49] J. Hair, R. Anderson, R. Tatham, and W. Black. Multivariate Data Analysis. (5th ed.).New York: Prentice Hall. 1998.

[50] L.J. Cronbach, and R.J. Shavelson. “My Current Thoughts on Coefficient Alpha and Successor Procedures”. Educational and Psychological Measurement, vol. 64, no. 3, pp. 391-418. 2004.

[51] H. F. Kaiser (1974). “An index of factorial simplicity”. Psychometrika, vol. 39, no. 1, pp. 31-36.

[52] M. J. Sanzo, M. L. Santos, R. Vazquez, and L. I. Alvarez. “The effect of market orientation on buyer–seller relationship satisfaction”, Industrial Marketing Management, 32(4), 327–345. 2003.

[53] B. Y. Yee, and T. M. Faziharudean. “Factors Affecting Customer Loyalty of Using Internet Banking in Malaysia”. Journal of Electronic Banking System. Article ID 592297. 2010.

[54] Z. Tao, L. Yaobin, and W. Bin. “The Relative Importance of Website Design Quality and Service Quality in Determining Consumers' Online Repurchase Behavior”. Information Systems Management, vol. 26, no. 4, pp. 327-337. 2009.

[55] H. W. Kim, Y. Xu, and J. Koh. “A comparison of online trust building factors between potential customers and repeat customers”. Journal of the Association for Information Systems, vol. 5, no. 10, pp. 392–420. 2004.

[56] P. B. Lowry, A. Vance, G. Moody, B. Beckman, and A. Read. “Explaining and predicting the impact of branding alliances and web site quality on initial consumer trust of e-commerce web sites”. Journal of Management Information Systems, 24(4):199–224. 2008.

[57] J. A. Ogundina. “Nigerian Banks and Global Challenges: Further Evidence”. Handbook on economics, finance and management outlook, ISBN 978-969-9347-14-6., 2013.

[58] Vanguard. CBN designates eight Banks ‘Too Big to Fail'. Vanguardngr.com. 12, NOVEMBER 2013.

[59] Greene, W. H. (2003). Econometric analysis (5th Ed.). Upper Saddle River, NJ: Prentice Hall.

[60] Ho, R. (2006), Handbook of Univariate and Multivariate Data Analysis and Interpretation with SPSS, New York: CRC Press, pp. 249.