The impact of online infomation system quality dimensions on overall tnternet banking service quality and custemer satifaction in vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School Of Business

NGUYỄN THỊ HẠNH DUNG

THE IMPACT OF ONLINE INFORMATION SYSTEM QUALITY
DIMENSIONS ON OVERALL INTERNET BANKING SERVICE
QUALITY AND CUSTOMER SATISFACTION IN VIETNAM.
MASTER OF BUSINESS (Honours)

Ho Chi Minh City – Year 2014


UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School Of Business

NGUYỄN THỊ HẠNH DUNG

THE IMPACT OF ONLINE INFORMATION SYSTEM QUALITY
DIMENSIONS ON OVERALL INTERNET BANKING SERVICE
QUALITY AND CUSTOMER SATISFACTION IN VIETNAM.
MASTER OF BUSINESS (Honours)

Supervisor
Dr. Nguyễn Thị Nguyệt Quế

Ho Chi Minh City – Year 2014


ABSTRACT
The development of scientific technology, especially the development of the

information technology have a strong impact on all aspects of life, economic - social,
change awareness and method of manufacturing business many areas, many different
economic sectors. And banking is the sector which activate primarily base on modern
information technology is influenced strongly.
Nowadays, developing internet banking services is the inevitable trend in Vietnam.
Because Internet banking brings the great benefits for customers and the economy, due to
its utility, convenience, promptitude, accurate and secure. The banks enhance expressly
quality of internet banking service to satisfy the customer aim to higher profit.
The success of a internet banking service depend on three dimensions : product,
service quality, technology. There are many studies research about the factors impact on
internet banking service quality and how to develope them to satisfy the customer 's
demands but in Vietnam very few stuies mentioned to the quality of information
technology while internet banking service quality depends primarily on information
technology system. The customer will not satisfy with internet banking service quality if
the information technology system don’t operate well and trouble happen frequently.
Based

on

that,

the

study

was

conducted to research "The impact of online

information system quality dimensions on overall internet banking service quality

and customer satisfaction in Vietnam”.
The study was conducted by exploratory factor analysis (EFA) method and
multiple linear regression (MLR) for measuring model. The survey questionnaires were
transfer to a sample of 250 consumers who has used internet banking services in
Vietnam. The result revealed that six dimensions of online Information system quality
including Aesthetic, Timeliness, Contents, Ease of use, Security, Accuracy are important
dimensions impact on customer satisfaction in using Internet banking and Accuracy is the
most important dimensions. Based on the results of research, the author hopes that the
bank managers realized the big influence of information system quality on internet
banking service quality to carry out effective solutions to develop
service in Vietnam.

1

internet banking


TABLE OF CONTENTS
ABSTRACT .................................................................................................................... 1
LIST OF FIGURES ........................................................................................................ 6
CHAPTER I: INTRODUCTION................................................................................... 7
1.1

Research background ........................................................................................ 7

1.2

Problem statement ............................................................................................ 9

1.3

Research objectives ......................................................................................... 10

1.4

Significance of the research ............................................................................ 10

1.5

Research scope and methodology ................................................................... 11
1.5.1 Research scope ........................................................................................ 11
1.5.2 Research methodology............................................................................. 11

1.6

Thesis structure................................................................................................ 12

CHAPTER 2: LITERATURE REVIEW and THEORETICAL MODEL ................................... 14
2.1 Online information system quality ................................................................... 14
2.1.1 Definition of online information system quality ............................................ 14
2.1.2 Dimensions of online information system quality ......................................... 14
2.2

Overall internet banking service quality ......................................................... 15
2.2.1Servicequalityconcept ............................................................................................. 16
2.2.2Overall internet banking service quality concept ............................................ 17
2.2.3Impact ofonline information system quality dimensions onoverall internet
banking service quality .................................................................................... 20

2.3

Customer Satisfaction ..................................................................................... 24
2.3.1 Customer satisfaction definition ......................................................................... 24
2.3.2Customer satisfaction in internet banking context .......................................... 25
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2.3.3 Impact of overall internet banking service quality on customer satisfaction
in E-banking context ........................................................................................ 26
2.4

Theoretical model and hypothesis ................................................................... 28

Summary: ................................................................................................................................................... 28
CHAPTER 3: RESEARCH METHODOLOGY............................................................................... 29
3.1

Research Process ............................................................................................. 29

3.2

Measurement Scales ........................................................................................ 30
3.2.1 Measurement of online information systems quality dimensions .............. 30
3.2.2 Measurement of overall internet banking service quality: ........................... 33
3.2.3 Measurementof customersatisfaction. ............................................................... 33

3.3

Questionaire design ......................................................................................... 34

3.4

Pilot study ....................................................................................................... 35

3.5

Main survey ..................................................................................................... 35
3.5.1Data collection method ........................................................................................... 35
3.5.2Sampling method...................................................................................................... 35
3.5.3Sample size ................................................................................................................ 36

3.6

Data analysis techniques ................................................................................. 37
3.6.1 Testing of reliability ............................................................................................... 37
3.6.2 Exploratory factor analysis (EFA)...................................................................... 38
3.6.3Multiple regression analysis .................................................................................. 38

CHAPTER 4: ANALYSIS RESULT .................................................................................................. 40
4.1

Sample description ......................................................................................... 40

4.2

Testing reliability of measurement scales ....................................................... 41

4.3

Exploratory factor analysis .............................................................................. 42

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4.3.1 Testing measurement scales of online information system quality ............ 42
4.3.2 Testing measurement scales of overall internetbanking service quality .. 46
4.3.3 Testing measurement scales of Customer Satisfaction ................................. 48
4.4

Testing correlations between all constructs .................................................... 49

4.5

Testing research model and hypothesis ........................................................... 49
4.5.1The relationship between online information system quality dimensions
and overall internetbanking service quality ................................................................ 49
4.5.2 The relationship between Overall internet banking service quality and
Customer Satisfaction ....................................................................................................... 52

4.6

Discussions of research findings ..................................................................... 54

CHAPTER 5: CONCLUSION AND IMPLICATIONS .................................................................. 56
5.1

Conclusions ..................................................................................................... 56

5.2

Managerial implications .................................................................................. 56

5.3

Limitations and Recommendation for further research .................................. 58

REFERENCE............................................................................................................................................ 60
APPENDIX ............................................................................................................................................... 69

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LISTOFTABLES
Table 3.1: Measurementof aesthetics
Table 3.2:Measurementof timeliness
Table 3.3: Measurementof the content
Table 3.4:Measurementof ease of use
Table 3.5:Measurementof security
Table 3.6: Measurementof accuracy
Table 3.7: Measurement of overall internet banking service quality
Table 3.8: Measurement of customersatisfaction
Table 3.9: The sample size
Table 3.10: Cronbach’s alpha reliability coefficient
Table 4.1: Demographic Characteristics of the Study
Table 4.2: KMO and Bartlett's Test
Table 4.3: KMO and Bartlett’s Test
Table 4.4: Rotated Component Matrixa
Table 4.5: KMO and Bartlett’s Test
Table 4.6: Rotated Comonent Matrix
Table 4.7: KMO and Bartlett’s Test
Table 4.8: Total Variance Explained

Table 4.9: Component Matrixa
Table 4.10: KMO and Bartlett's Test and Component Matrix
Table 4.11:ANOVAb
Table 4.12:Model Summaryb
Table 4.13: Coefficientsa
Table 4.14:Model Summaryb
Table 4.15:ANOVAb
Table 4.16:Coefficientsa

5


LIST OF FIGURES
Figure1:Themodelof research
Figure2:Themodelof researchprocess

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CHAPTER I: INTRODUCTION

In this chapter, the problems are discussed such as

introducing the role and

importance of internet banking in the banking industry; internet banking ‘s situation in
VietNam; research objectives, scope and methodology ... Many researchers have
discussed about internet banking but most of them has not focused on online information
system quality dimensions that affect customer satisfaction in internet banking. And the
cause the thesis was chosen.

1.1

Research background
Internet banking could be conceptualized within the context of electronic banking.

Internet banking is the situation where “customers can access their bank account via the
Internet using a PC or mobile phone and web-browser” (V.A. Zeithaml et. al.,2002, p.2).
Currently, Internet banking relies on the Internet environment, service is provided
entirely through the network environment and there is combining commercial banking
system and traditional electronic goods, such as the distribution of products and services
on the old new distribution channels. In recent years, Internet banking has grown
worldwide with fast speed. This service is also considered as retail distribution channels
and it is the most successful banking services in terms of growth rate of number of
customers. Internet banking allows customers to use the service through the bank’s
website anytime, anywhere, quickly, conveniently at a lower cost than other traditional
services of banks (White and Nteli, 2004). Internet banking enables customers to save
time, take control of their personal finances and even help the environment by opting to
receive electronic statements. Customer can access accounts and general information on
bank products and services through a personal computer or other intelligent device.
Internet banking products and services can include detailed account information for
corporate customers as well as account summary and transfer money.
Internet Banking helps banks save up human resources by multiple steps have been
automated but still ensure for provide high quality services to a large number of their
customers. And so, not the profits of the bank increased but more importantly, their
reputation has been enhanced.For the banks, internet banking also allows them to reduce
operating costs, reduce dependence on the expansion of the branch network, expanding
business sector, support the strengthening relationship with customers (Shih and Fang,
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2004).Through Internet Banking, communication and transactions between banks and
customers has also been speeded up. Moreover, intense pressure of uncertain economic
outlook, a growing threat from new entrants foster each banks to differentiate themselves
to compete with both local and foreign banks. Therefore, the decision to provide Internet
Banking is currently perceived as vital for customer retention and maintaining
competitive advantage (DeYoung and Duffy, 2002).
According to Gartner Group report, the growth rate of online banking services in
the U.S. is very high, from ten million users in 1999 to thirty -five million users in 2003.
According to the report of the organization, online banking services are also used similar
popularity in the U.S., in 2009, approximately 30-40 % of the UK population currently
use this service. In Brazil, there are about 18.1 million users of online banking services in
2004. It is compared with 8.3 million users in 2002, including 16.2 million user accounts
are individual subscribers. Here, these financial sites are always be the sites traffic and
most used, with the figure of 50 % of the total 13.5 million Internets account login
regularly (Vichuda and Serap Ekin, 2001). Moreover, if the only consideration in 2004,
the Bank of Brazil has invested about 2.1 billion dollars in the technology sector
(Febraban, 2004), including the development of online banking services and a number of
other areas.
Starting in 1994, internet banking in Vietnam was built on the foundation of
information technology and banking technology at a low level, only allowing customers
to access to get information and makesimple payments. In just a short time, the level of
information technology in our country has made significant improvement, it leads to the
rapid development of the industries applied the information technology such as banking
sector.In recent years,internetbanking services is growing more aggressive and having
strong shifts. However, internet banking in Vietnam is only in the early stages of
development and was monotonous, meager and not attract many customers. Non-cash
payment in Vietnam is still low, the proportion of cash used in bank circulation / total
means of payment is ranged between 24-25%. This rate is much higher than other
countries in the region such as Thailand (6.3%), China (9.7%). Psychology preferred cash
in using VND, foreign currencies and the understanding of banking services by

Vietnamese are low is one of the reasons for extending banking services difficultly.

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The success of a internet banking service depend on three dimensions : product,
service quality, technology. But Vietnam is a developing country so the development and
security of information technology sector is not as high as developed countries leads to
the quality of internet banking service is not high affect the customer satisfaction. So
there are many stusies research about which factors impact to internet banking and how
develope them to satisfy the customer 's demands but there are not many stuies
mentioned the quality of information technology in Vietnam while internet banking
service would be have some problem if the technology has trouble. Summary, although a
service which be ad well, the abundant human resource but the technology is not good,
almost customers won't want to use this service. In the scope of this thesis, we want to
research about the impact of online information system quality dimensions on overall
internet banking service quality and customer satisfaction in Vietnam.
1.2

Problem statement
Consumer satisfaction is the major problem for the businesses that are operating in

Electronic Commerce systems. Good customer service quality is the main factor that will
determine, in the future, whether the businesses will survive or fail (Thompson, Green
and Bokma,2000). Improving customer service helps to build and maintain customers
relationships. Recently, many banks have used the Internet as a new market channel to
offer their customers avariety of services 24 hours a day. With internet banking service,
to satisfy customer’s needs, many banks need to set up web sites that provide quality
information and services to customers. Better service quality typically can help to get
higher market share and better returns (Slu and Mou, 2003). It is desirable for online

service providers to uncover what attributes consumers utilized in their assessment of
overall service quality and satisfaction and which attributes are more important (Yang
and Fang, 2004). Internet-based services are believed to have convenience, interactivity,
relatively low cost...However, there is no much research about the factors that affect
customer satisfaction with Internet-based services. (Khalifa and Liu, 2003). Due to rapid
technological change and market competition, service quality becomes an increasingly
important issue. Therefore understanding overall internet banking service quality with
customer satisfaction is need.
Internet banking compared to traditional banking, heavily involves non-human
interactions between customers and online bank information systems (Jun and Cai, 2001).
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It is important that the banks provide customers with high quality services to survive in
the highly competitive Internet banking industry. For this, bankers first need to
understand the attributes that customers use to assess service quality to monitor and
enhance the internet banking service quality. There are numerous studies that identified
the key service quality dimensions in the traditional banking environment, but relatively
little literature has investigated service quality attributes in the internet banking industry
and the relation with customer satisfaction (Jun and Cai, 2001).Jun and Cai (2001)
indentified online information system quality is one of three broad conceptual categories
related to Internet banking service quality. There is no much researchers concern about
online information system quality while online information system quality is vital to
internet banking users’ perceptions of overall internet banking service quality because it
is a key enabler of the services they wish to use.
There are many different perceptions about internet banking webiste quality, but in
summary there are six dimensions belong to online information system quality. They are
ease of use, aesthetic, timeliness, contents, security and accuracy (Jun and Cai, 2001). So
that, the thesis will focus to analyze deeply about relationship between online information
system quality dimensions to overall internet banking service quality and customer

satisfaction.
1.3

Research objectives
The main objective of this research is to investigate the usefulness and applicability

of theoretical model in measuring the impact of online information system quality
dimensions to overall internet banking service quality and customer satisfaction. The
dimensions of online information system quality including aesthetic, timeliness, contents,
ease of use, security, accuracy.
1.4

Significance of the research
This study has important implications for both practical business (leaders of

commercial banks, marketing managers…) and academic (researchers, students of the
business administration department…) as follow: The research will help the leaders of
commercial banks respond the satisfaction of customers . It leads to increase the amount
consumer which will use this system. In other sides, it helps the bank has the right
decision to develop the Internet Banking through six dimensions such as Aesthetic,
Timeliness , Contents, Ease of use , Security , Accuracy. Besides,the results of this study
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are also a basis for references in developing other research about internet banking
service to practical applications.
1.5

Research scope and methodology
1.5.1

Research scope

This study is conduct in Ho Chi Minh City, one of the biggest economic centers of
Viet Nam. The research object is the customers who are using the intenet banking
service. Due to limited time and cost, the research surveyed about 250 customers of some
banks in HCMC such as Vietinbank, Vietcombank, ACB, Sacombank...To approach
these customers who were surveyed directly at the banks, we use question "Have you
ever used internet banking service?". If the answer was “Yes”, we would be continued
the survey, ifnot we stopped the survey.
The scope of this survey is primarily in HCM province, so the results are not
covering the whole territory of Vietnam. This is also the limitation of thesis.
1.5.2

Research methodology

The research conducted the survey of using internet banking services. All data of
the survey would be got from studies, articles and journals to make the quality
questionaires to make clearly the target of thesis. There were two kinds of survey to be
used, they were paper survey and online survey. Online survey would be sent to the
internet banking users via emails and paper suarvey would be given direcly to customers
in the banks. The content of two kinds of survey was similar.
This study used two research methods. The first stage, qualitative research identifies
the models, factors, suitable measurement variables for survey. Through the previous
relevant researches, the questionnaire was built then running the pilot test for checking
the efficiency and the meaning of the questions. The pilot test was purposed to explore
and define the relevant items and building a completed questionnaire. The second stage,
quantitative research was the main approach of this study. The goal is to identify the
impact of online information system quality dimensions on overall internet banking
service quality and customer satisfaction in Vietnam

Sampling method be applied was the convenience sampling method. This means
that sampling based on convenience or easy to approach the object, where investigators
are easily to meet objects. Convenience sampling method is non-random sampling (or
non-probability sampling) methods. The limit of this method is sampling units in overall
11


have not be equal ability to be selected. The non-random sample selection is completely
dependent on the experience and understanding of the researcher about the overall, so
the investigate results are often subjective.
Data analysis methods was used for study such as sample demographic, statistical
analysis, tests of hypothesis, explore the research objectives and withdraw other findings
from this study. Accordingly, the descriptive analysis will be presented first to show
respondents demographics, followed by the Cronbach’s alpha and exploratory factor
analysis (EFA) for measuring model, finally multiple linear regression (MLR) analysis
will be performed for hypothesis testing.
1.6

Thesis structure
This thesis organizes in five chapters. The first is the introduction of the study. The

second is the literatures review and hypothesis. Following is the research method. The
next part is the results and limitations of the findings. The conclusion comprises the final
section of this research.
• Chapter 1 – Introduction
This chapter first introduces about advantages internet banking service and reflects
the current situation of it in Vietnam, due to affect the customer satisfaction on this
service. It leads to propose the research problem, research objectives and significance of
this study.
• Chapter 2 - Literatures review

Chapter 2 presents the theoretical foundation of the research, is all about presenting
previous research done on the stream of studies related to customer satisfaction on
internet banking service. Including the definition and related problem overall internet
banking service quality, customer satisfaction and online information system quality
dimensions. From that, the hypothesis are proposed for research model. This chapter is
concentrates on explaining each variable in the model, and reasons for choosing them to
be include in the research model.
• Chapter 3 - Research Methodology
Chapter 3 introduces research methodology. Research method describes the way of
establishment of the measures and conducting the survey. This part includes two steps,
qualitative research to modify draft measurement scale and quantitative research to
analyse the data collected to test the research hypothesis proposed in chapter 2.
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• Chapter 4 – Results of Data Analysis and Discussion
Chapter 4 translates data collected from survey, analyses data as well as discusses
the result finding in connection with research model. Accordingly, the research
hypothesis are tested. This chapter explains the empirical part of the study. This part
discusses the method for collecting data used to test the hypothesis, and it analyses the
data received, its reliability and multiple regression.
• Chapter 5 – Conclusions and Recommendations
The last chapter, chapter 5 discusses

the research results by affirming the

exploratory values as well as connecting to the realistic conditions to suggest the practical
application. This chapter includes conclusion, implication, and research limitations.
Lastly, the limitations are recognized to direct for further research in the future.
References and appendixes are included in the end of thesis.

Summary:
The thesis begins with introduction by discussing the research background and
importance of internet banking. Then the problem statement was defined to take a closed
look at using internet banking in Viet Nam. The research object is the customers who use
the internet banking service. Due to limited time and cost, the research surveyed about
300 customers of some banks in HCMC . Finally, this chapter discussed on the research
methodology.
The most important thing to remember is that the banks need to provide customers
with high quality services to survive in the highly competitive internet banking industry.
This is a fact acknowledged all over the world, and not the least in Ho Chi Minh City
where internet usage in general are very popular.
This research is show us how to customer satisfied of overall internet banking
service quality and the bank managers need to care about what dimensions of online
information system quality to develop the internet banking service.

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CHAPTER2: LITERATURE REVIEW AND THEORETICAL MODEL

Before carrying out the survey on the effect of dimensions of online
information system quality to overall internet banking service quality and customer
satisfaction, this chapter provide a theoretical background about online information
systems quality dimensions, overall internet banking service quality and overall internet
banking service quality. Base on these, the conceptual research model and hypothesis are
constructed.
2.1 Online information system quality
2.1.1

Definition of online information system quality

The Internet is an innovative form of information technology, yet most commercial
Web sites function as well-defined information systems. Information system quality can
be divided into system and information quality. System quality refers to software
development caliber, while information quality embraces accuracy, timeliness, currency
and reliability of information (DeLone and McLean, 1992).
2.1.2

Dimensions of online information system quality

When a customer accesses a Web site, the Web site can be considered as an
information system and the customer as an end-user of the information system. The
Internet-based data processing, thus, can be regarded as an extreme case in an end-user
computing environment where the users of Web sites seldom have direct interaction with
the operations staffs of the Web sites. In order to measure end-user computing
satisfaction, Doll and Torkzadeh (1988) proposed five quality dimensions that influence
end-user satisfaction: content; accuracy; format; ease of use; and timeliness. In
addition, Zeithaml et al. (2002) have uncovered several quality dimensions related to
online systems- ease of navigation, flexibility, efficiency, site aesthetics, and security.
Online information system quality was operationalised with six dimensions (ease of use,
accuracy, security/privacy, contents, timeliness, and aesthetics) from the work of Jun
and Cai (2001).
Besides the main studies which mentioned, having others study research about the
measurements of service quality related to Internet banking website such as:
Yoo and Donthu (2001) have developed a measurement instrument SITEQUAL,
which includes four dimensions: ease of use; aesthetic design; processing speed; and
14


security. As for Internet banking, Sathye (1999), with respect to the adoption of Internet

banking by Australian consumers, found that two factors such as "difficulty in use" and
"security concern" are important reasons that customers do not want to use the service.
Jayawardhena and Foley (2000) suggested that the features of Internet banking Web sites,
such as: the speed to download; content; design; interactivity; navigation; and
security, are critical to enhancing customer satisfaction. Cox and Dale (2001) have
discovered and statistically validated four quality factors of a Web site. These are: ease of
use (the design of the Web site); customer confidence (how the Web site generates
customer trust); online resources (capability of the Web site to offer products/services);
and relationship services (how the Web site bonds with the customer and inspires
loyalty). Santos (2003) has uncovered five dimensions of online systems quality - such
as ease of use, appearance, linkage, structure and layout, and content, and labeled
them as incubative dimensions.
On the basis of a comprehensive review and synthesis of the extant literature on ESERVQUAL, Zeithaml et al. (2002) detailed five broad sets of criteria as relevant to ESERVQUAL perceptions: (a) information availability and content, (b) ease of use or
usability, (c) privacy/security, (d) graphic style, and (e) reliability/fulfillment.
The above researches related to online information system quality in Internet
banking mentioned to many different factors, but in generally they have the same as
factors in the study by Jun and Cai (2001). So based on the research result of Jun and Cai
(2001), the thesic decided focus on six dimensions (ease of use, accuracy, security,
contents, timeliness, and aesthetics) of Online information system quality.
2.2

Overall internet banking service quality
The main purpose of running a business is to pursue a better goal and higher profits.

Developed from Internet marketing and the traditional service quality literature, service
quality is one of the key factors in determining the success or failure of electronic
commerce (Yang, 2001). The concept of service quality in e-commerce, also called eservice quality, can be defined as the consumers’ overall evaluation and judgment of the
excellence and quality of e-service offerings in the virtual marketplace.
As for internet banking service, a well-designed website will create a different value
from the normal, and improve interest of a consumer access to the site to do other

transactions. A well design website will create profits and contribution to a bank because
15


it makes increased consumer's satisfaction. Internet banking service quality not only
provides for a bank a better advantage of competitive, it also enhances the relationship
between bank and consumers in terms of saving cost.
2.2.1

Servicequalityconcept

According to Parasuraman, Berry and Zeithmal (1985), a perception of service
quality is a result of a comparison between what consumers consider the service should
be and their perceptions about the actual performance offered by the service provider.
Asubonteng et al. (1996) defined service quality is the difference between customers’
expectations for service performance prior to the service encounter and their perceptions
of the service received. Gefan (2002) said service quality as the subjective comparison
that customers make between the quality of the service that they want to receive and what
they actually get.
In a long period, many researchers have tried to define and measure service quality.
For example, Lehtinen and Lehtinen (1982) indicated that the service quality had to be
assessment on two aspects ,(1) the process of providing service and (2) the result of
service. Gronroos (1984) also proposed two components of quality services, which are
(1) technique quality, that's what the customer received and (2) functional quality, show
that how services are provide.
However, when talking about service quality, we can not forget to mention the huge
contribution of

Parasuraman et al. (1988,1991). Parasuraman et al. (1988) defines

service quality is the "different degree between the expectations of the consumers about
services and their awareness about the service result". These authors have initiated and
used qualitative research and quantitative to build and inspect components scale of
service quality (called SERVQUAL scale). SERVQUAL scale was adjusted and
inspected in many different types of services. Finally the SERVQUAL scale includes 22
variables to measure five components of service quality such as

reliability ,

responsiveness, assurance, tangible and empathy :
(1) tangibles, which pertain to the physical facilities, equipment, personnel and
communication materials;
(2) reliability, which refers to the ability to perform the promised services
dependably and accurately;

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(3) responsiveness, which refers to the willingness of service providers to help
customers and provide prompt service;
(4) assurance, which relates to the knowledge and courtesy of employees and their
ability to convey trust and confidence; and
(5) empathy, which refers to the provision of caring and individualised attention to
customers
Parasuraman (1991) confirmed that the SERVQUAL is the complete
measurement about service quality. It’s worth, reliability and may be applied for every
different type .
2.2.2

Overall internet banking service quality concept

Internet banking could be conceptualized within the context of electronic banking.
Though it has been variously defined, according to Daniel (1999), electronic banking is
the delivery of banks‘ information and services by banks to customers via different
delivery platforms that can be used with different terminal devices such as personal
computer and mobile phone with browser or desktop software, telephone or digital
television. Electronic banking, therefore, could be categorized into PC banking, Internet
banking, TV-based banking, and Telephone-based banking. It is a construct that consists
of several distribution channels. Internet banking is the situation where ―customers can
access their bank account via the internet using a PC or mobile phone and web-browser
(Zeithaml et al.,2002).
Many past studies have developed various models for understanding relevant
service quality dimensions relevant to internet banking. The empirical work of (Ho and
Win,2010) was conducted in an emerging economy of Taiwan Internet banking sector,
they developed and validated a five dimension internet banking service quality model
that has 17-item measurement scale for measuring the service quality in internet banking.
The dimensions were based on e-service quality model of (Cristobal et al.,2007). The
emerged dimensions for the internet banking service quality context are: web design,
customer service, assurance, preferential treatment and information provision.
Further studies have been done on how to measure service quality within banking
industry. A study done by Joseph et al.,(1999) investigated the service quality within
banking industry when costumers are using Internet, telephone or ATM machines. The
study has shown that there are six factors when identifying service quality of electronic
17


banking. They areconvenience/accuracy, feedback/complaintmanagement, efficiency,
queue management, accessibility, customization.Bahia and Nantel proposed an
alternative measure in how service is perceived in the banking industry. Their results
were inspired by those done by Parasuraman et al.,(1988) and contained six dimensions:

effectiveness and assurance, access, price, tangibles, service portfolio andreliability.
Effectiveness and assurance means that customers should feel safe in using the bank.
Access is when customers expect the bank to have the latest technology so that they can
perform their banking errands efficiently and safely. Price is an important measuring
instrument and Bahia and Nantel suggest that the price should be reasonable because it is
attracting the customer. Tangibles refer to the atmosphere of the bank where the effective
service environment exists. Service portfolio focuses on those services that are offered
while reliability deals with trustworthiness of the banks from the customer’s point of
view (Bahia,2000).
In a first attempt to adapt the SERVQUAL dimensions to e-services, Kaynama and
Black (2000) subjectively evaluated the online services of 23 travel agencies and seven
dimensions derived from SERVQUAL: responsiveness, content and purpose (derived
from reliability), accessibility, navigation, design and presentation (all derived from
tangibles), background (assurance), and personalization and customization (derived from
empathy). One author who has extended the SERVQUAL conceptualization to the
electronic context is Gefan (2002), who found that the five service quality dimensions
collapse to three with online service quality: (a) tangibles; (b) a combined dimension of
responsiveness, reliability, and assurance; and (c) empathy. In that research, tangibles
were found to be the most important dimension in increasing customer loyalty and the
combination dimension most critical in increasing customer trust. Yang and Fang (2004)
found that ease of use and usefulness are important factors in evaluating online service
quality. Doll and Torkzadeh (1988) identified five quality dimensions that have an impact
on “end-user” satisfaction in an online environment: content, accuracy, format, ease of
use, timeliness. The reliability and validity of these dimensions were confirmed by Doll
et al.(1994) and Hendrickson and Collins (1996). Wolfinbarger and Gilly (2002) have
found four online service quality dimensions through focus group interviews and an
online survey. These are web site design, reliability, privacy/security and customer
service. They found that reliability and fulfillment are the strongest predictor of customer
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satisfaction. With regard to the success of a web site, Liu and Arnett (2000) suggested
four factors. They are: system use, system design quality, information quality, and
playfulness. Exploratory research done in the context of online retailing by Yang et al.
(2004) revealed reliable/prompt responses, attentiveness, and ease of use had
considerable impacts on both customers perceived overall service quality and
satisfaction. It also indicated that there is a significant positive relationship between
overall service quality and satisfaction. The resultof this reseach show that the key
drivers are ease of use and reliability. However, other factors such as accuracy,
responsiveness and web site design are also important.Madu and Madu (2002) proposed
15 dimensions of online service quality dimensions based on literature review:
performance, features, structure, aesthetics, reliability, storage capacity, serviceability,
security and system integrity, trust, responsiveness, product/service differentiation and
customization, web store policies, reputation, assurance and empathy.
The difference of the other studies, Jun and Cai (2001), in a study of online
banking, found that web site design, information, ease of use, access, courtesy,
responsiveness, and reliability are significant dimensions that determine service quality.
In 2001 one research was conducted on e-banking and service quality by Jun and Cai. In
a new direction, based on the familiar factors of the previous studies on e-banking
service quality, Jun and Cai identified seventeen dimensions which all could be divided
into three categories: customerservice quality, online systems quality and banking service
product quality. Even their studies have been inspired by the SERVQUAL instrument but
because of the e-banking special characteristics this instrument has been extended.
Customer service quality contains dimensions like reliability and credibility, but also
communication and understanding the customer. Online systems quality is about the
security online and a demand of an easy to use e-banking program. Banking service
product quality is where customers want a variety of products and services that are
offered through e-banking.
In the other sides, with the development of the Internet Banking service by many
periods, there were many researches about the factors which affect to the satisfaction of

customers. Michel et al.(2008)based on the research of Jun and Cai (2001) to examine
relations between Online customer service quality; Online information system quality;

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Banking service product quality and overall internet banking service quality. And the
relationship between overall internet banking service quality and customer satisfaction.
They gave the results :
• Online information system quality is a significantly stronger predictor of
overall internet banking service quality than both online customer service
quality and banking service product quality individually and when
combined.
• When overall internet banking service quality is perceived to be high,
customers are more likely to be satisfied with their online service and
consequently will be more satisfied with their bank.
So this thesis want to research deeply about the dimensions ofOnline information
system quality with affects to Overall internet banking service quality.
2.2.3

Impact ofonline information system quality dimensions onoverall

internet banking service quality
Online information system quality is vital to internet banking users’ perceptions of
overall internet banking service quality because it is a key enabler of the services they
wish to use (Jun and Cai, 2001). If the information system does not perform well,
customers are not able to reliably make transactions or access information, compromising
their perceptions of service quality (Yang et al., 2004). If the web site is not informative,
or the design of the web site is not friendly, this will have a negative impact on
customers’ perceptions of overall internet banking service quality. The more

conveniently customers can interact with the bank through the web site, the safer their
online transactions, and the more error-free the transactions, the better customers’
perceptions with the service quality provided online.
Some studies researched about dimensions of online information system quality
including ease of use, accuracy, security, contents, timeliness, and aesthetic affect to
overall internet banking service quality which were syntheticed such as:
According Jun and Cai (2001), aesthetic shows the atractiveness of the
website.Having six dimensions of online information system quality which were found in
their study. They are ease of use, accuracy, security/privacy, contents, timeliness, and
aesthetics. Aesthetics is related to the concept that aesthetically appealing Web site would
have a positive impact on drawing potential customers’ attention.
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Michel et al.(2008 ) based on the research of Jun and Cai (2001) to exam the
relationship between online information system quality dimensions and overall internet
banking service quality and customer satisfaction. They also showed dimensions similar
to Jun and Cai (2001) and gave the result as aesthesic was also one of the online sytem
quality dimensions and impact positively to overall internet banking service quality. Cao
(2005) identified that web sites should be designed accordingly that will create an
opportunity for users to find accurate information, easier search facilities, less loading
time and ensure security because customers are most concerned with finding accurate
information, searching fast and placing oder securely. A quality website should also be
designed appealing. Zviran et al.(2005) conducted a study to find out important factors
that drive user satisfaction from the web site. They have empirically tested user
satisfaction of different web sites and determined two characteristics: usability and userbased designed.In light of the above we suggest our first hypothesis:
H1a: Aesthetic is positively related to Overall internet banking service quality

Weinberg (2000) emphasizes that a page design should consider not only
appearance but also loading time. Researchers have studied the significance of waiting

time in service evaluations. Schleifer and Amick (1989) report that system response time
is inversely related to computer user satisfaction. Weinberg (2000) concludes, in terms of
waiting time on the internet, that is the best if the homepage loads relatively fast, and that
efforts toward achieving this result will be rewarded. One of the e-commerce challenges
on the web is when users experience intolerably long waits for a website’s page to load.
When the loading time exceeds the time that a web user is willing to wait, the web user
will either reirect the web-browser to another website or quit using the web (Weinberg,
2000).
Jun and Cai (2001) gave six dimensions of online information system quality affect
to customer satisfaction and timeliness is one of these dimensions. Timeliness mentions
up-to-date information. Michel et al.(2008) examed the result of Jun and Cai to show
clearly the impact of timeliness to overall internet banking service quality and customer
satisfaction. If the banking transaction have an error, it should not take too long to correct
the error after it is reported. Internet banking acceptance relies closely on the
management of consumer relationship (Goi, 2005). Thus, our secondhypothesis is:
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H1b: Timeliness is positively related to Overall internet banking service quality

Barnes and Vidgen (2001) contend that WebQual should be use to evaluate a
website from a customer’s point of view via four components: functionality, content,
sevice and attractiveness. Smith (2001) has developed several criteria to evaluate a
government web site and they have tested these criteria on a government web site to see
their applicability. They have divided these criteria into two groups: information content
criteria and ease to use criteria.
Jun and Cai (2001) definitioned that “content” is information on products and
services online or other informations that customer needs. “Content is king” is a wellknown slogan (Huizingh,2000). Providing information is the basic goal of a website
(Bhatti et al,2000). Deciding what content to place on a website is extremely important.
The reasoning stands that the target audience a company wants to attract drive the site

content (Day,1997). Lin an Lu (2000) address the issue of how customer’s acceptance is
affected by the features and accurate information. Perkowitz and Etzioni (1999) explore
the importance of updated information with the notion of adaptive website. Updated
information means both updating existing content and adding new content to the site
(Ducoffe,1996). According to Michelet al.(2008 ), “content” measured by the customer’s
account information on internet banking website is well documented and clear. Hence,
our third hypothesis is:
H1c: Contents is positively related to Overall internet banking service quality

Rai et al. (2002) studied users of a computerized student information system (SIS)
and found system quality and information quality to be determinants of satisfaction. They
have taken system quality as ease of use and defined it as the “degree to which the system
is user friendly”.
Yang and Fang (2004) found that ease of use and usefulness are important factors in
evaluating online service quality. Exploratory research done in the context of online
retailing by Jun et al (2004) revealed reliable/prompt responses, attentiveness, and ease
of use had considerable impacts on both customers perceived overall service quality and
satisfaction. It seems that the key drivers are ease of use and reliability. However, other
factors such as accuracy, responsiveness and web site design are also important.
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The quality of Internet banking includes ease in signing on the system, of
performing the transactions, and getting to a live person in case of access problems (Siaw
and Yu,2004; Tan and Teo, 2000). Smith and Merchant (2001) find that online customers
are very particular about having a website easy to read, as well as easy to navigate.
Michel et al.(2008) measured “ease of use” by the layout of the information in internet
banking website is easy to follow; easy to complete a transactions through Internet
banking website and easy to log on customer’s account. A responsive website proves to
be highly important to end-users (Robbins and Styliano, 2003). Devaraj et al. (2002)

suggest that aspects associated with transaction costs, service quality and easy access to
information are important antecedents of e-commerce consumer satisfaction. Hence, our
fourth hypothesis is:
H1d: Ease of use is positively related to Overall internet banking service quality

Jun and Cai (2001) defined security is privacy and information transaction safety.
Zeithaml, Parasuraman, and Malhotra's (2000) defined “security” is degree to which the
customer believes the site is safe from intrusion and personal information is protected.
Zeithaml, Parasuraman, and Malhotra (2005) detailed five broad sets of criteria as
relevant to eSQ perceptions: (a) information availability and content, (b) ease of use or
usability, (c) privacy/security, (d) graphic style, and (e) reliability/fulfillment. Privacy
(the protection of personal information) and security (the protection of users from the risk
of fraud and financial loss) have been shown empirically to have a strong impact on
attitude toward use of online financial services (e.g., Montoya-Weiss

et al. 2003).

Michel et al.(2008 ) measured “security” by the bank not allowed misuse customers’s
personal information and make the customers feel safe to do online transactions. Hence,
our fifth hypothesis is:
H1e:Security is positively related to Overall internet banking service quality

At present, online banking services do not differ from each other very much. All
services contain almost the same basic properties without exclusivity. It seems that banks
have attempted to minimise risks by developing online services that are primarily
reliable. This can be observed by looking at the high user satisfaction with accuracy and
timeliness (Pikkarainen et al.,2006).
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