Customer Satisfaction with internet banking web Site (Case study on the Arab Bank) Khanfar, A. Khalid The Arab Academy for Banking and Financial Sciences, Jordan. [email protected]
Rashed, A. Abdallah The Arab Academy for Banking and Financial Sciences, Jordan. [email protected]
Elzamly, M. abed Elrafe The Arab Academy for Banking and Financial Sciences, Jordan. [email protected]
Elmasri, A. Abed Elbaset The Arab Academy for Banking and Financial Sciences, Jordan. [email protected]
ABSTRACT Despite the large improvement in internet banking web site in the world, many obstacles are still affecting the promotion of this idea in Arab banks. Our research was conducted on the customer satisfaction with internet banking web site for the Arab Bank. The covered factors in this paper were: customer support, security, ease of use, digital products/services, transaction and payment, information content, and innovation. In this paper, we have used Cronbach Alpha, SpearmanBroun, Guttman Coefficients, regression techniques, correlations, T-test and F-test. Keywords: Customer satisfaction, Internet banking, Arab web sites.
1. Introduction The extension of money and banking to the cyberspace is an inevitable development in the information age (Liao and Cheung, 2003). Although the number of users of the internet has increased significantly over the past decade, only a small fraction of those users have made actual purchases over the internet. The failure of the internet as a retail distribution channel has caused to the lack of trust consumers in the electronic channel (Echannel) and in the web merchants (Stewart, 1999). The researchers defined customer satisfaction as the magnitude that the customer obtained with what he/she expected from the same bank. Idan (2002)
Defined internet banking as any system that gives customers of financial institution the ability to execute financial transactions through the internet. Many researches focused on the user of internet banking that have been done on adoption, and the factors influencing it. The Arab web sites present online banking services such as checking balances, paying bills and helping in building strong communities by helping people achieve their orders instantly and securely. The main objective of this study is to provide a clear knowledge about the contribution in the area of internet banking, this can be through examines the influenced and the information systems (IS) literature on user satisfaction, and develop, validate
and test from these bases and perspective a model for internet banking satisfaction.
2. Literature Review Binemann-Zdanowicz et al. (2004) proposed an approach to context-awareness of web information systems being systematically distinguishes among the various important kinds of context. The authors showed how parts of this context can be operationalized for increasing customers’ usage comfort, and they permitted designing web information systems such that they meet high quality expectations concerning usability, performance and maintainability. Kyu and Bipin (2001) provided both theoretical explanations and empirical validation on the adoption of e-commerce. Regarding the adoption of internet banking, they enabled to offer specific recommendations on marketing strategies for practitioners. Vincent and Robert.(2003) offered an ODBMS (Object Database Management System) system that can be used in a high volume web based transactional system. Ronald (2003) examined legal and policy issues raised by changes in payment methods related to the rise of the internet. Elias (2000) explored the status of e-commerce in the banking industry. Although more and more banks have demonstrated ready commitment to "presence" on the internet, preliminary results indicated a state of fragmentation in the quality, content, personalization, and category of web sites. Ioannis and Ray (2004) investigated information systems security in the context of internet banking. In doing so, it adopts a socio-organizational approach to the subject matter by investigating the interrelationship between culture and risk communication within information technology groups and their possible effect on the level of security goal setting. They described different socioorganizational perspectives and tried to demonstrate the importance of culture and risk communication in setting efficiently internet banking goals within the broader
context of information systems security management. Kyung and Bipin. (2003) proposed conceptual model posits that the initially trust in the e-channel as a banking medium and the trust in bank are the major determinants of adoption behavior. Based on social network theory and trust theory, determinants of trust in the e-channel such as propensity-to-trust, word-of-mouth (WOM) referrals, and structural assurances, are included in the research model. Wang and Tang  developed and empirically validated a 21- item, 7-factors instrument for measuring information satisfaction with web sites that market digital products and services. There study defined the domain of the computer information system (CIS) construct, operationally designed the initial CIS item list, and empirically validated the general CIS instrument, and it proposed instrument that provided a common framework for the comparative analysis of results from various researches.
3. The Sample A sample was chosen to examine the information systems (IS) literature on user satisfaction. We have developed, validated, and tested a model for internet banking satisfaction. A structured questionnaire is used for data collection, that asked respondents questions aimed to help us in developing the model. Seven factors were presented to respondents. A pilot study was conducted to identify possible shortcomings of the questionnaire. In this questionnaire, the method of sample selection referred to as ‘snowball’ sampling will be used. This involved e-mailing survey questionnaires to customers in the field who have experience in this area. This generated several more responses as these referrals were used to gain further referrals and hence the term snowball. This procedure is appropriate when members of a homogeneous group (such as customers) are difficult to locate. The sample was designed to contain 208 individuals working for many braches of the
Arab banks, and the design questionnaire was used for collecting data. The questionnaire was sent to the target customers by E-mail.
Innovation: the successful exploitation of new ideas – incorporating new technologies, design and best practice is the key business process that enables businesses to compete effectively in the global environment.
4. Statistical method The analysis of the questionnaires responses was conducted using Cronbach Alpha, Spearman-Broun, Guttman Coefficients, regression techniques, correlations, T-test and F-test.
5. Research Method 5.1 Operationalization of the variables The research instrument to measure the constructs of interest was developed either by adapting existing measures to the research context or by converting the definitions of the construct into a questionnaire format. All variables were measured on a 5- point Likert scale. The operationalization of each of these construct is presented in the following paragraphs: Customer support: A customer services approach that focuses on building long term and sustainable customer relationships that add value for both the customer and the bank. Security: The quality or state of being secure to be free from danger. Ease of Use: A method that the bank Availableness it for the customer who through it use the procedures of banks easily. Digital Products/Services: Goods and services that can be transformed to digital format and deliver upper the internet banking Transaction and Payment: services and procedures that the bank availableness for the customer who through it able to payment and other borrow and other transaction form banks online. Information Content: content at a web site that need to be changed continually to keep it up to date.
6. Analysis The instrument is designed so as to be generalized across a wide variety of digital products and services and is shown in Table1. Table 1: Customer Information Satisfaction Instrument for Web Sites that market Digital Products/Services (Wang & Tang, 2001) Customer Support CS1 You are satisfied with the customer support provided by the web site CS2 You are satisfied with the after-sales service provided by the web site CS3 The website considering your problems and requests CS4 The website responds to your requests as fast as possible Security SE1 The website provides enough security of your transaction data and privacy SE2 You feel safe in your transactions with the website SE3 The website is secure Ease of Use EOU1 The website is user friendly EOU2 The output format is easy to read EOU3 The website is easy to use Digital Products/Services DPS1 You are satisfied with the products or services provided by the website DPS2 The digital products or services provided by the website meet your needs DPS3 The website provides high-quality products or services Transaction and Payment TP1 You are satisfied with the payment system provided by the website TP2 You are satisfied with the transaction procedures TP3 The website provides clear transaction and price information
Information Content IC1 The website provides information that exactly fits your needs IC2 The website provides accurate information IC3 The website provides information that you trust Innovation IC4 The website provides up-to-date information DPS4 The website provides innovative products or services
are significant at the 0.01 level 2-tailed, so the validation of instrument is high, hence the instrument is acceptance. 6.3 Reliability Tests 1- Cronbach alpha In order to assess reliability, the Cronbach alpha was determined for each construct (factor). If the Cronbach alpha is greater than 0.7, the construct is deemed to be reliable. Table 3: Reliability tests
6.1 Research Instrument Validation In order to validate the instrument, validity and reliability tests were performed, correlation coefficients between the realized construct were examined, and their relationship to a global measure of satisfaction was assessed. 6.2 Construct Validity To assess the validity of the internet banking satisfaction instrument, correlation was employed and identified seven factors in their instrument. This is shown in table 2. Table 2: Correlation between factors and overall satisfaction Factor Value R VALUE SIG. Customer Support 0.358 ** Security 0.645 ** Ease of Use 0.562 ** Digital 0.413 ** Products/Services Transaction and 0.734 ** Payment Information Content 0.734 ** Innovation 0.625 ** ** . Correlation is significant at the 0.01 level (2-tailed) Table 2 illustrates the correlation between five factors and overall internet banking satisfaction. The results reveal that most of factors have value above 0.5, and all factors
No. of item 4 3 3 3
Cronbach alpha 0.759 0.864 0.891 0.793
Customer Support Security Ease of Use Digital Products/Services Transaction and 3 0.861 Payment Information Content 3 0.872 Innovation 2 0.862 overall satisfaction 21 0.832 Table 3 shows that all constructs met the reliability criteria, as the lowest alpha was 0.759.
2- Split Half 2-1 Table 4: Spearman-Broun Split Half No. of SpearmanFactor R item Broun Customer 4 0.9578 0.9784 Support Innovation 2 0.8830 0.9379 Table 4 shows that the reliability of customer support and innovation is high. 2-2 Table 5: Guttman Split Half. Factor No. of Guttman item Coefficients Security 3 0.758 Ease of Use 3 0.854 Digital 3 0.847 Products/Services Transaction and 3 0.832 Payment
No. of item 3
Guttman Coefficients 0.860
Information Content overall 21 0.851 satisfaction Table 5 shows that the reliability of all factors and overall satisfaction is high.
6.4 Distribution Sample Of the 260 distributed questionnaires, 208 were returned with responses. All 208 questionnaires were complete and were thus used in the analysis of the data, which was done using order methods, frequency scales and regression analysis. The results of regression analysis indicated that general trends only due to fairly low R2 and Beta values as shown in table 6. Table 6: Distribution sample according to gender Gender
Male Female Total
Frequency 98 110 208
Percent 47.1 52.9 100.0
Table 6 shows that the percentage of the female is greater than the percentage of the male. The percentage of the female is 52.9, whereas the percentage of the male is 47.1. Figures 1, 2, 3, and 4 show the graphical representation of the demography data (age, occupation, monthly income, and highest level of education).
Figure 1 shows that the highest number of customer ages ranged between 25-30. The percentage is 0.51. The faction 43-47 is 0.47. The faction 37-42 is 0.36. The faction 18-24 is 0.27. The faction 48-53 is 12. The lowest number of customer ages is above 54. Their percentage is 0.07. Figure 2: Distribution sample according to occupation Occupation
41 / 20%
42 / 20%
full - time student 48 / 23% part -time student 77 / 37%
Figure 2 shows that the highest percentage of occupation of the customers is Part-time students. The percentage is 0.37. the fulltime student is 0.23. the employed is 0.20. The lowest percentage of the customer occupations is 0.19. Figure 3: Distribution sample according to monthly income Monthly Income >1200 $ 7 / 3% 901 -1200