DESIGN AND EXPLAIN THE FECTOR AFFECTING SATISFACTION IN ELECTRONIC BANKING

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1 DESIGN AND EXPLAIN THE FECTOR AFFECTING SATISFACTION IN ELECTRONIC BANKING Mohammad nazaripour Assistant professor of accounting at the University of Kurdistan,Sanandaj, Iran ABSTRACT Customer Satisfaction has a positive impact on customer loyalty in E-banking. The more satisfaction, the more loyalty will be attained. Therefore, the aim of this study is examining and recognizing variables related to satisfaction. This study considers a conceptual model which determines customer satisfaction in E-banking. To test the hypotheses, questionnaire of 32 questions designed that is valued 0 to 100 and distributed among the population (Melat bank), the total 351 patients of the main branches of clients who have had experience using the online system. The method used in this research is descriptive survey. The path analysis method was used to test the hypotheses, and the AMOS software is used for statistical analysis of data. The results of the study show the significant impact of variables on Customer Satisfaction, however, the Customer Value and Trust has had the greatest impact on Satisfaction among them. Key words: Customer Satisfaction, Electronic banking, Trust, Service quality, Customer Value, Assurance. Introduction Customer satisfaction is central to the marketing concept, with evidence of strategic links between satisfactions and overall service performance (Truch, 2006).Customer satisfaction is considered to act as an antecedent of loyalty, arising out of direct prior experience (Wu & Wang, 2005). Congruent with the proposition that affective reactions influence attitude, recent studies have demonstrated that satisfaction is an antecedent of e-loyalty, with increased satisfaction leading to increased e-loyalty (Balabanis et al., 2006). Loyal customers are not necessarily satisfied customers, but satisfied customers tend to be loyal customers (Fornell, 1992). Satisfying customers should thus be of extreme importance to e-stores in their efforts to keep customers loyal. Customers who are satisfied with the e-stores they currently use develop a positive attitude towards those e-stores. Studies have found that customer satisfaction is an ex-post evaluation of service experience and is a key factor in retaining customers and improving customer loyalty (Wong and Tong, 2012). Satisfied customers are more likely to stay and continue to use a bank s services, while unsatisfied customers will walk away and find a different service provider ( Leverin and Liljander, 2006).Customer satisfaction, the feeling of customers using a product or service, is one of most popular research topics in marketing and e-commerce studies, including its positive effects on customers repurchase and word-of-mouth behaviors. Recent online banking studies, including Casaló, Flavián, and Guinalíu (2008), have found that customer satisfaction with previous online banking interactions have had a positive effect on both customer loyalty and positive word-of-mouth(cheolho Yoon,2010). Zaim et al find out that tangibility, reliability and empathy are important factor for customer satisfaction, whereas responsiveness and assurance are important factor (Zaim et al, 2010). Kumar et al and found that assurance, empathy and tangibles are the important factor, and on the other hand, found that tangibles are not related to customer satisfaction(kumar et al,2010) and Ahmed et al find out that empathy is negatively related to customer satisfaction. Researchers have identified various 21

2 determinants of customer satisfaction in the retail banking sector (Ahmed et al, 2010). Arasli et al pointed out that reliability dimension of SERVQUAL has the highest impact on customer satisfaction in Greek Cypriot banking industry, whereas reliability is not related to customer satisfaction, competitive interest rate is one of the important determinants of customer satisfaction in retail banking sector. They found that a good employee-customer relationship can increase the satisfaction level. They pointed out that problem recovery is important to maintain the customer satisfaction. However, the results did not confirm that satisfactory problem-recovery can increase satisfaction. At least, it can maintain the satisfaction level. Finally, they concluded that competitiveness and convenience of the banks are the two important determinants of customer satisfaction (Arasli et al, 2005).On the other hand, Jamal and Naser found that convenience and competitiveness are not the critical factors for all gender, age and income groups (Jamal & Naser, 2003).Consumers satisfaction is a key factor for establishing long term relationships with them and acquiring their repurchase intentions (Myung et al, 2011). Customer satisfaction is an important construct in loyalty research. There is strong evidence of an overall positive main effect of the relationship between customer satisfaction, as an antecedent, on loyalty intentions and customer behaviors. Essentially, higher satisfaction levels should lead to higher levels of loyalty intentions and behaviors (Paul et al, 2012).Customer satisfaction is defined as the customer's perception of the extent to which their needs, goals and desires have been fully met. Research differentiates between transaction-specific satisfaction and cumulative satisfaction. Cumulative satisfaction is defined as a channel member's positive affective response to the non-economic, psychosocial aspects of its relationship, in that the interactions with the exchange partner are fulfilling, gratifying, and easy. As to the relationship between satisfaction and relationship commitment, conceptualizing satisfaction as the outcome of one single transaction economic satisfaction might be too restrictive(manuel et al,2009).customer satisfaction is likely to be even more important online, since it is harder to keep online customers loyal(hazlina et al,2011).in banking, which has traditionally been a high contact service, the lack of direct human interaction in internet banking entails the need to examine the role of technology, shopping, and product factors to construct e-cs(schaupp& Bélanger,2005). Banks must have the knowledge on how to get their customer satisfied, especially in relation to the e-sq, and in internet banking, it shall be prioritized (Farnaz et al, 2012). Research Objectives Main Objectives - Examining effective factors influencing Satisfaction in Electronic banking. Sub Objectives 1- Identifying factors influencing Satisfaction in electronic banking. 2- Measuring any of the factors influencing Satisfaction in electronic banking. 3- Rating any of the factors influencing Satisfaction in electronic banking. 4- Extracting the conceptual model about the factors influencing Satisfaction in electronic banking. 5-Developing and drawing conclusions from the extracted conceptual model about the factors influencing Satisfaction in electronic banking. Research hypotheses H 1.Theres a significant and positive influence Trust in Satisfaction. H 2.Theres a significant and positive influence Service quality in Satisfaction. H 3.Theres a significant and positive influence Assurance in Satisfaction. H 4.Theres a significant and positive influence Empathy in Satisfaction. H 5.Theres a significant and positive influence Tangibles in Satisfaction. H 6.Theres a significant and positive influence Customer Value in Satisfaction. H 7.Theres a significant and positive influence Responsiveness in Satisfaction.

3 Model One-Sample Kolmogorov-Smirnov Test Error N 351 Kolmogorov-Smirnov Z.426 Asymp. Sig. (2-tailed).075 Trust Service quality Assurance Satisfaction Empathy Tangibles Customer Value Responsiveness Fig 1: The Conceptual model of examining the effective factors(trust, Service quality, Assurance, Empathy, Tangibles, Customer Value, Responsiveness) influencing Satisfaction in E- banking(taken from Ing-long wu.2012, Kazi omar.2011, Mehdi fathollahzadeh et al.2011, Ahmad et al.2010,zaim et al.2010,kumar et al.2010). into 7 sections with a value of For analyzing data, path analysis was used. Theoretical framework for research Kolmogorov- Smirnov test Research Method Considering the subject of this research, the universe of this study is the clients of the main branches of Melat bank in Kermanshah province-iran. The sampling method and sample volume was determined by Morgan table. The universe was 4000 people and sample volume was determined 351 persons. Samples were collected by the simple accidental sampling method. A closed questionnaire was used for collecting data and the questions were categorized To use path analysis and regression method, errors must have a normal distribution. To examine this, Kolmogorov-Smirnov test is being used. In the table above, since p-value = and p > 0.05, the hypothesis of being normalized is accepted. A primary sample of 351 people were examined to do this research and as for getting sure of its reliability, cronbachs Alpha was used. As it's shown in the table below, α =0.920, which proves the reliability of the questionnaire.

4 Table 3: Reliability Statistics Cronbach's Alpha N of Items In the table above, cronbachs alpha = and α > 0.70, then it can be said that this questionnaire is reliable. In this model, the impact of independent variables such as Trust, Service quality, Assurance, Empathy, Tangibles, Customer Value and Responsiveness on the dependent variable of Satisfaction is examined. Therefore, the model is illustrated as following:.90 Trust error 1 Satisfaction.75 Service quality Assurance Empathy Tangibles Customer Value Responsiveness.88 Graph 2: The regression coefficients of independent variables in melat bank. In the figure above, 0.90 demonstrates regression coefficient between Trust and Satisfaction variables, and 2.31 demonstrates the variance of reliability variable. Regression coefficients of variables in melat bank The table above shows the calculated regression coefficients of independent variables on dependent ones. According to this table, the regression coefficient of the variable Trust is Also, the calculated regression coefficient of Service quality is 0.751, Assurance =0.799, Empathy =0.602, Tangibles = 0.792, Customer Value = and Responsiveness = Considering the last column of this table which shows p- value related to independent variables coefficients being significant hypothesis. Trust 0.014, Service quality, Assurance, Empathy 0.001, Tangibles 0.006, Customer Value, Responsiveness.because all of these p values < 0.05, as a result, it can be concluded that all of these coefficients are significant. In the second column, this table shows standard error and the third column shows the critical value, which is attained through dividing the coefficient estimation by the standard error. 21

5 Table 4: Regression coefficient of independent variables in melat bank Estimate S.E. C.R. P Satisfaction <--- Trust Satisfaction <--- Service quality Satisfaction <--- Assurance Satisfaction <--- Empathy Satisfaction <--- Tangibles Satisfaction <--- Customer Value Satisfaction <--- Responsiveness Structural equation In this article, independent variables like Trust is shown by X 1, Service quality X 2, Assurance X 3, Empathy X 4, Tangibles X 5, Customer Value X 6, Responsiveness X 7 and the dependent variable of service quality is shown by the regressional coefficients, the linear regressional model being fitted to data, is as follows: Y = x x x x x x x 7 Standardized Regression Weights The standardized coefficients of independent variables have been shown in the graph below. Table 5: the standardized coefficients of variables Estimate Satisfaction <--- Trust.865 Satisfaction <--- Service quality.860 Satisfaction <--- Assurance.920 Satisfaction <--- Empathy.860 Satisfaction <--- Tangibles.545 Satisfaction <--- Customer Value.881 Satisfaction <--- Responsiveness.615 As has obvious from the table above, the variable of Customer Value has the most impact and Tangibles has the least impact on the variable of Satisfaction. Comparing the independent model and the proposed model In order to examine the suitability of the model, the following criteria are used. The nearer the values of these criteria to 1, the more suitable the model will be. The independent model is a kind of model in which there's no relationship among variables, being called a basic model.

6 Table 6: comparing the suggested and independent model in melat bank RMSEA AGFI GFI CFI IFI RFI NFI proposed model independent model The values of the table above proves the suitability of the model. K 2 of the suggested models The following table shows the K 2 value for the suggested model. Table 7: K2 of the suggested model in melat bank CMIN DF CMIN/DF P For this model, , degrees of freedom = 21 and sig =, and because sig <0.05, it's concluded that the regressional model being fitted among dependent and independent variables is significant and suitable. Conclusion H 1.Theres a significant and positive relationship between Trust and Satisfaction. significant and positive relationship between trust and satisfaction with a sig of and a regression coefficient of 0.90.Therefore,it can be stated that there is a strong relationship between satisfaction and trust, and the regression coefficients between the two stated variables is direct (positive).as a result, it can be said that trust influences satisfaction and in customers point of views; The more the trust, the better satisfaction, therefore, the hypothesis is accepted. H 2.Theres a significant and positive relationship between Service quality and Satisfaction. significant and positive relationship between service quality and satisfaction with a sig of and a regression coefficient of 0.75.Therefore,it can be stated that there is a strong relationship between satisfaction and service quality,and the regression coefficients between the two stated variables is direct (positive).as a result, it can be said that service quality influences satisfaction and in customers point of views; the more the service quality, the better satisfaction, therefore, the hypothesis is accepted. H 3.Theres a significant and positive relationship between Assurance and Satisfaction. significant and positive relationship between assurance and satisfaction with a sig of and a regression coefficient of 0.79.Therefore,it can be stated that there is a strong relationship between satisfaction and assurance, and the regression coefficients between the two stated variables is direct (positive).as a result, it can be said that assurance influences satisfaction and in customers point of views; the more the assurance, the better satisfaction, therefore, the hypothesis is accepted. H 4.Theres a significant and positive relationship between Empathy and Satisfaction. significant and positive relationship between empathy

7 and satisfaction with a sig of and a regression coefficient of 0.60.Therefore, it can be stated that there is a strong relationship between satisfaction and empathy, and the regression coefficients between the two stated variables is direct (positive).as a result, it can be said that empathy influences satisfaction and in customers point of views; The more the empathy, the better the satisfaction, therefore, the hypothesis is accepted. H 5.Theres a significant and positive relationship between Tangibles and Satisfaction. significant and positive relationship between tangibles and satisfaction with a sig of and a regression coefficient of 0.79.Therefore,it can be stated that there is a strong relationship between satisfaction and tangibles, and the regression coefficients between the two stated variables is direct (positive).as a result, it can be said that tangibles influences satisfaction and in customers point of views; The more the tangibles, the better the satisfaction, therefore, the hypothesis is accepted. H 6.Theres a significant and positive relationship between Customer Value and Satisfaction. According to the achieved results; theres a significant and positive relationship between customer value and satisfaction with a sig of and a regression coefficient of 0.97.Therefore,it can be stated that there is a strong relationship between satisfaction and customer value, and the regression coefficients between the two stated variables is direct (positive).as a result, it can be said that customer value influences satisfaction and in customers point of views; The more the customer value, the better the.satisfaction, therefore, the hypothesis is accepted. H 7.Theres a significant and positive relationship between Responsiveness and Satisfaction. significant and positive relationship between responsiveness and satisfaction with a sig of and a regression coefficient of 0.85.Therefore,it can be stated that there is a strong relationship between satisfaction and responsiveness, and the regression coefficients between the two stated variables is direct (positive).as a result, it can be said that responsiveness influences satisfaction and in customers point of views; The more the responsiveness, the better the satisfaction, therefore, the hypothesis is accepted. The results attained from analyzing data demonstrates that all effective factors influencing Satisfaction have a strong and significant impact, but the factor of Customer Value has more impact on Satisfaction in online banking and also Trust can impact Satisfaction through bringing about customer service quality. Resources 1. Ahmed, I., Nawaz, M.,Usman, A., Shaukat, M., Ahmad, N. and Iqbal, H. (2010), Impact of Service Quality on Customers' Satisfaction: Empirical evidence from telecom sector of Pakistan, Interdisciplinary Journal of Contemporary Research in Business 1(12), Arasli, H., Smadi, S. M., and Katircioglu, S. T. (2005), Customer Service Quality in the Greek Cypriot banking industry, Managing Service Quality 15(1), Balabanis, G., Reynolds, N., & Simintiras, A. (2006). Bases of e-store loyalty: Perceived switching barriers and satisfaction. Journal of Business Research, 59(2), Cheolho Yoon. (2010)" Antecedents of customer satisfaction with online banking in China: The effects of experience "of Journal Computers in Human Behavior 26, Eggert.A, Ulaga.W, (2002)"Customer perceived value: a substitute for satisfaction in business markets", Journal of Business & Industrial Marketing 17(2 3), pp Farnaz Beheshti Zavareha, Mohd Shoki Md Ariffa, Ahmad Jusoha, Norhayati Zakuana, and Ahamad Zaidi Baharia. (2012)"E-Service Quality Dimensions and Their Effects on ECustomer Satisfaction in Internet Banking Services" of Journal Procedia - Social and Behavioral Sciences Fornell, C. (1992). A national customer satisfaction barometer: The Swedish experience. Journal of Marketing, 56(1), Hazlina Abdul Kadir, Reza Masinaei, Nasim Rahmani (2011), Long-Term Effects of Bank Consolidation Program in a Developing Economy, Journal of Asia Pacific Business

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