E-SERVICE

E-Service - A Research Study on the Application of E-Service in the Banking Sector

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Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [………], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

Abstract

This paper examines contribution of investments in e-services and advertising to output and profits of Spanish banks in period 1983-2003. Found that growth in capital stock of E-service explains one third of output growth of banks, and that additional investment in E-service of the million pounds can be substituted for twenty-five workers. Document also reveals that ad spending will increase demand for banking services with an elasticity of 0.22 to 0.11 for deposits and loans. For all of assets concerned, null hypothesis that banks use profit-maximizing amount of services for the period cannot be rejected with data.

Table of Contents

CHAPTER I: INTRODUCTION6

Background6

Definition and nature of e-SQ11

Research Questions12

Sub-research question12

Research Hypothesis12

Satisfaction with online banking services12

Importance of electronic banking services13

Nature of competitive offerings of an electronic15

CHAPTER II: METHODOLOGY17

Methodological issues in developing e-SQ scales17

Key words17

Stream Literature Search Strategy17

Research Methods17

Sampling methods19

Service industries considered22

Survey administration23

Element generation24

Evaluation and purification of elements25

Dimensionality analysis26

Scale reliability and validity27

CHAPTER III: LITERATURE REVIEW30

Issues of adequacy of dimensions of e-SQ30

Banking operations strategy model41

Operational Policies43

Quality44

Process48

Capacity50

Facilities53

CHAPTER IV: RESULTS56

Dimensionality and structure of e-SQ construct56

Dimensionality of e-SQ construct56

Comparison with traditional dimensions of service quality60

Result quality compared to functional quality61

Hierarchical structure of e-SQ construct62

Results and implications of research62

CHAPTER V: CONCLUSION67

REFERENCES75

A Research Study on the Application of E-Service in Banking Sector

Chapter I: Introduction

Background

Online service quality has the significant influence on many important aspects of electronic commerce (e-commerce). These include consumer confidence in an online store ([Gefen, 2002], [Hsu, 2008] and [Hwang and Kim, 2007]), equity site (Yoo and Donthu, 2001), consumer attitudes toward site ([Hausman and Siekpe attitude toward e-shopping (Ha and Stoel, 2009);;, 2009] and [Yoo and Donthu, 2001]) perceived value of products / services (Hsu, 2008), willingness to pay more (Fassnacht and Kose, 2007), satisfaction of users online ([Christopher et al, 2007.], [Fassnacht and Kose, 2007], [Ho and Lee, 2007] and [Lee and Lin, 2005]), intentions site loyalty ([Ho and Lee, 2007] and [Yoo and Donthu, 2001]); intentions recommendation site (Long and McMellon, 2004), and cross of purchase (Fassnacht and Kose, 2007). Given apparent importance of quality of electronic service (e-SQ), Hsu (2008) argues that achievement of the higher quality of online services should be fundamental differential strategy of all e-retailers, in fact, e-SQ has been increasingly recognized as most important determinant of long-term performance and success of e-retailers ([Fassnacht and Koes, 2006], [Holloway and Beatty, 2003], [Santos, 2003] [Wolfinbarger and Gilly, 2003], [Zeithaml et al., 2000] and [ Zeithaml et al., 2002]). Understanding how consumers evaluate e-SQ is therefore of utmost importance to scholars and practitioners alike ([Fassnacht and Kose, 2007] and [van Riel et ...