Internship Report                        Summer 2006 A RELATIONAL STUDY ON AUTOMATED SERVICE QUALITY,CUSTOMER SATISFACTION...
A RELATIONAL STUDY ON AUTOMATED SERVICE QUALITY,CUSTOMER SATISFACTION AND FINANCIAL PERFORMANCE IN           THE CONTEXT O...
August 24, 2006Mr. Samir MainuddinLecturer, School of BusinessIndependent University, BangladeshDear Sir,    It is a great...
Acknowledgement    In the preparation and finalization of this internship report, I acknowledge theencouragement and assis...
Table of contents    Abstract                                           i1   Introduction                                 ...
14 Timeline     26   References   27   Appendices   36
INTRODUCTION    Bank Asia symbolizes modern banking with innovative services in Bangladesh. TheBank provides Online Bankin...
Automated service quality, customer satisfaction and their relationship with financial performance   2of a bank. The curre...
Automated service quality, customer satisfaction and their relationship with financial performance   3Bagozzi, 2002) and a...
Automated service quality, customer satisfaction and their relationship with financial performance   4retention, profitabi...
Automated service quality, customer satisfaction and their relationship with financial performance   5a web site facilitat...
Automated service quality, customer satisfaction and their relationship with financial performance   6     In the banking ...
Automated service quality, customer satisfaction and their relationship with financial performance   7service quality from...
Automated service quality, customer satisfaction and their relationship with financial performance   8organisational perfo...
Automated service quality, customer satisfaction and their relationship with financial performance   9expectation concepts...
Automated service quality, customer satisfaction and their relationship with financial performance   10accounting purposes...
Automated service quality, customer satisfaction and their relationship with financial performance   11                   ...
Automated service quality, customer satisfaction and their relationship with financial performance   12                   ...
Automated service quality, customer satisfaction and their relationship with financial performance   13design. Here, finan...
Automated service quality, customer satisfaction and their relationship with financial performance   14     The researcher...
Automated service quality, customer satisfaction and their relationship with financial performance   15ATM was measured by...
Automated service quality, customer satisfaction and their relationship with financial performance   16ResultsReliability ...
Automated service quality, customer satisfaction and their relationship with financial performance        17 for Telephone...
Automated service quality, customer satisfaction and their relationship with financial performance          18 CustomerSat...
Automated service quality, customer satisfaction and their relationship with financial performance      19and very weak co...
Automated service quality, customer satisfaction and their relationship with financial performance      20  (Constant)    ...
Automated service quality, customer satisfaction and their relationship with financial performance   21units. The constant...
Automated service quality, customer satisfaction and their relationship with financial performance    22Table 5Standardize...
Automated service quality, customer satisfaction and their relationship with financial performance   23and ATM explained 4...
Automated service quality, customer satisfaction and their relationship with financial performance   24on results due to t...
Automated service quality, customer satisfaction and their relationship with financial performance   25                   ...
Automated service quality, customer satisfaction and their relationship with financial performance   26standard and non-di...
Automated service quality, customer satisfaction and their relationship with financial performance   27                   ...
Automated service quality, customer satisfaction and their relationship with financial performance   28Caruana, A. (2002),...
Automated service quality, customer satisfaction and their relationship with financial performance   29D’Angelo, J. and Li...
Automated service quality, customer satisfaction and their relationship with financial performance   30Iqbal, Z., Verma, R...
Automated service quality, customer satisfaction and their relationship with financial performance   31Kotler, P. (1984), ...
Automated service quality, customer satisfaction and their relationship with financial performance   32Mukherjee, A., Nath...
Automated service quality, customer satisfaction and their relationship with financial performance   33Phillips, L., Calan...
Automated service quality, customer satisfaction and their relationship with financial performance   34Santos, J. (2003), ...
Automated service quality, customer satisfaction and their relationship with financial performance   35Yasin, M., Correia,...
Automated service quality, customer satisfaction and their relationship with financial performance   36                   ...
Automated service quality, customer satisfaction and their relationship with financial performance       37               ...
Automated service quality, customer satisfaction and their relationship with financial performance       38Question items ...
Automated service quality, customer satisfaction and their relationship with financial performance       39Question items ...
Automated service quality, customer satisfaction and their relationship with financial performance       40Question items ...
Automated service quality, customer satisfaction and their relationship with financial performance       41Question items ...
Automated service quality, customer satisfaction and their relationship with financial performance       42Question items ...
Automated service quality, customer satisfaction and their relationship with financial performance   43                   ...
Automated service quality, customer satisfaction and their relationship with financial performance       44Question items ...
Automated service quality, customer satisfaction and their relationship with financial performance   45                   ...
Automated service quality, customer satisfaction and their relationship with financial performance   46Reliability (ATM)  ...
Automated service quality, customer satisfaction and their relationship with financial performance   47Reliability (INTERN...
Automated service quality, customer satisfaction and their relationship with financial performance   48Reliability (CORE S...
Automated service quality, customer satisfaction and their relationship with financial performance       49Reliability (FI...
Automated service quality, customer satisfaction and their relationship with financial performance       50        Correla...
Regression (STEP WISE)          Variables Entered/Removed(a)        Variables      VariablesModel    Entered       Removed...
Automated service quality, customer satisfaction and their relationship with financial performance                  52 5  ...
Automated service quality, customer satisfaction and their relationship with financial performance        53              ...
Relational Study of Automated Service Quality, Customer Satisfaction and Financial Performance
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Relational Study of Automated Service Quality, Customer Satisfaction and Financial Performance

  1. 1. Internship Report Summer 2006 A RELATIONAL STUDY ON AUTOMATED SERVICE QUALITY,CUSTOMER SATISFACTION AND FINANCIAL PERFORMANCE IN THE CONTEXT OF BANK ASIA LTD Submitted by Syed Mohammad Ashiqullah ID: 0320454 Submitted to Mr. Samir Mainuddin Lecturer Independent University, Bangladesh August 24th, 2006
  2. 2. A RELATIONAL STUDY ON AUTOMATED SERVICE QUALITY,CUSTOMER SATISFACTION AND FINANCIAL PERFORMANCE IN THE CONTEXT OF BANK ASIA LTD Submitted by Syed Mohammad Ashiqullah ID: 0320454 Submitted to Mr. Samir Mainuddin Lecturer Independent University, Bangladesh August 24th, 2006
  3. 3. August 24, 2006Mr. Samir MainuddinLecturer, School of BusinessIndependent University, BangladeshDear Sir, It is a great pleasure for me to submit the report on “A relational study on automatedservice quality and customer satisfaction with the financial performance in the context ofBank Asia Ltd.”. I am submitting this report as the part of my internship (BBA-499A) inBank Asia Ltd. This report will help the organization to find out related factors with theirautomated service quality, customer satisfaction and financial performance. I hope you will asses my report considering the limitations of the study. Your kindadvice will encourage me to do further research in future.Yours SincerelySyed Mohammad AshiqullahID # 0320454
  4. 4. Acknowledgement In the preparation and finalization of this internship report, I acknowledge theencouragement and assistance given by a number of people and institution. I am mostgrateful to the Bank Asia Ltd. (Gulshan Branch) management to give me the opportunityto complete my internship in their esteemed organization. I would like to express my gratitude to my Supervisor Mr. Samir Mainuddin forproviding me detailed feedback and advice on this report. He always gave me hisvaluable suggestions in making this study as flawless as possible. My deepestappreciation also goes to Dr. Nadim Jahangir, Dr Arif-Al Mahmood, Mr. MuzahidAkbar, and Mr Mohammed Imran for their overall support throughout my university lifewhich helped me making this report a better one. I also want to render my special thanks to Mr. Syed Iltefath Hussain, First VicePresident & Manager, and Mr. Alamgir Hossain, Assistant Vice President & Sub-Manager, Bank Asia Ltd. for providing all the support in the organization. Special thanksgo to the account holders and the employees of the Bank, who spared their timegenerously, and took the trouble of answering a detail questionnaire and helped me tocomplete my study.
  5. 5. Table of contents Abstract i1 Introduction 12 Problem Statement 13 Purpose of the study 34 Literature Review 45 Research Questions 116 Research Hypothesis 117 Conceptual Framework 118 Operational Definition 129 Research Methodology 12 9.1 Research Design 12 9.2 Sampling Method 13 9.3 Survey Instrument 14 9.4 Data Collection Procedure 15 9.5 Data Analysis 15 9.6 Result 16 9.7 Regression analysis 19 9.8 Assessment of the research hypothesis 2210 Limitations of the Study 2311 Significance of the Study 2412 Recommendation 2513 Conclusion 26
  6. 6. 14 Timeline 26 References 27 Appendices 36
  7. 7. INTRODUCTION Bank Asia symbolizes modern banking with innovative services in Bangladesh. TheBank provides Online Banking, ATM Support, SMS and Net Banking Services in thecountry. The newly developed web application is fully authentic, secured and robust.This technology based services also provides Fund Transfer through internet,Debit/Credit Card facility, free SMS message of special type of withdrawal fromcustomer accounts time to time. Aaaaa aaaaaaaa aaaaaa aaaaaaaaaa aaaaaaaaaa a a a a a aaaa Bank Asia formed with the Bank Company Act 1991, the rules and regulation issuedby the Bangladesh Bank, the Company Act 1994, the Securities and exchange Rules 1987and other applicable laws and regulations in 1999. The first Board of Directors of thebank was constituted with 13 Directors. Aaaaa aaaaaaaa aaaaaa aaaaaaaaaa aaaaaaaaaa aa a a Bank Asia is gradually setting new standards on banking sector in the matter ofsocial responsibilities. Bank Asia will meet the cost of ophthalmologic operations for allchildren in Bangladesh who are born blind. Bank Asia has introduced scholarshipschemes for the poor and meritorious students of the rural areas for higher studies. AaaaaaaaaaThe recent increasing number of private banks in Bangladesh has been an alarmingthreat for Bank Asia, and the organizational financial performance seems to be hampered.Thus Bank Asia wants to investigate the related variables which have significantrelationships with financial performance. PROBLEM STATEMENT In an earlier study conducted by Al Hawari and Ward (2005) automated servicequality has been identified to have a significant importance in the financial performance
  8. 8. Automated service quality, customer satisfaction and their relationship with financial performance 2of a bank. The current study extends the previous study and investigates weather there isany relationship between automated service quality and customer satisfaction with thefinancial performance of a bank in the context of Bank Asia, Bangladesh. ATM, telephone banking, internet banking, price, and core service, five factors ofautomated service quality of a bank are the key components of the financial performanceof a bank. In the general literature, service quality and customer satisfaction have oftenbeen identified as significant predictors of business performance (Duncan and Elliott,2002; Wiele et al., 2002; Yasin et al., 2004; Yeung et al., 2002). Therefore, this studyexplores how perceived quality of automated service and level of customer satisfactionare related to bank profitability. “Automated service quality” is defined as the customer’soverall evaluation of the services provided through electronic channels, such as theinternet, telephone and ATMs (Santos, 2003). It is proposed that customer perceptionsand preferences of service quality have a significant impact on a bank’s success.Analysing markets based on customer perceptions, designing a service delivery systemthat meets customer needs, and enhancing levels of service performance are pertinentobjectives for banks to gain and retain a competitive advantage (Brown and Swarts,1989). Service quality in the broader context has received much attention because of itsobvious relationship with costs, financial performance, customer satisfaction, andcustomer retention. The literature provides an extensive account of the relationships between servicequality, customer satisfaction, and financial performance where face-to-face interactionbetween customer and employee is the only focus. Recently, however, technology hashad a remarkable influence on the growth of service delivery options (Dabholkar and
  9. 9. Automated service quality, customer satisfaction and their relationship with financial performance 3Bagozzi, 2002) and a profound effect on service marketing (Bitner et al., 2000). There areseveral competitive advantages associated with the adoption of technology in serviceorganizations, including the creation of entry barriers, enhancement of productivity, andincreased revenue generation from new services (Fitzsimmons and Fitzsimmons, 1997).Service quality is one of the main factors that determines the success or failure ofelectronic commerce (Santos, 2003). However, automated service quality has tended tolag behind because practitioners have focused mainly on issues of usability andmeasurement of use (Buckley, 2003), with little consideration for the outcomes. Therefore, this study will investigate weather significant relationship exist amongautomated service quality, customer satisfaction and the financial performance in BankAsia. PURPOSE OF THE STUDY The purpose of the study is to present and test a model, which identifies therelationship of, automated service quality and customer satisfaction with the financialperformance of the bank. The rapid development of IT-based technology options advances the need forresearch beyond the interpersonal dynamic of service encounters in this technology-oriented context (Meuter et al., 2000). Parasuraman and Grewal (2000) emphasised theimportance of technology in shaping buyer-seller interactions and recommended furtherinvestigation into the impact of technology, for example, on the service quality-value-loyalty chain. The quality issues of automated services in the banking context arebecoming important because of their potential influence on: attractiveness, customer
  10. 10. Automated service quality, customer satisfaction and their relationship with financial performance 4retention, profitability, positive word-of-mouth, and maximum competitive advantages(Moutinho and Smith, 2000; Nguyen and Leblanc, 1998; Santos, 2003). Despite the theoretical background underpinning the importance of automatedservice quality in customer satisfaction and profitability, empirical research is required toexamine the extent to which it enhances or diminishes these variables in this new context.Accordingly, this paper will begin with a literature review of current theoreticalarguments, followed by a description of a model, developed by the authors, to show therelationship between customer perceptions of automated bank services and theirprofitability via customer satisfaction. Data collection methods and analysis techniqueswill then be explained. The paper will conclude with an examination of the majorresearch findings, methodological limitations and implications for marketing planning.The present study aims to identify the relationship of automated service quality andcustomer satisfaction with the financial performance of the bank. LITERATURE REVIEWAutomated Service Quality There are well-established definitions of service quality within the general personalinteraction environment (Cronin and Taylor, 1992; Parasuraman et al., 1988), butattention has recently been directed to the e-commerce environment (Santos, 2003). Todate, automated service quality research has been limited to relationship managementrather than the metrics of service quality (Buckley, 2003). Therefore, the currentliterature lacks a comprehensive definition of automated service quality. Zeithaml (2002,p. 135) defined it with specific reference to the internet defining it as “the extent to which
  11. 11. Automated service quality, customer satisfaction and their relationship with financial performance 5a web site facilitates efficient and effective shopping, purchasing and delivery”. For thepurposes of this research, however, the definition proposed by Santos (2003) has beenadopted, as it provides a more general definition of automated service quality that can beextended beyond internet-based applications. It is “theconsumers ’ overall evaluation and judgement of the excellence and quality of e-serviceofferings in the virtual marketplace”. This is applicable to the current research, as theinternet banking channel is not the only automated service delivery channel in thebanking sector. In addition to internet banking service quality, telephone banking andATM service quality are addressed here, within this particular service environment. Thus, “automated banking service quality” is defined as the customer’s overallevaluation of the excellence of services provided through electronic networks, such as theinternet, ATM, and telephone banking. Mols (2000) argued that customer acceptance of new automated channels of servicedelivery in banks may bring a dramatic change in the way retail banks build and maintainclose relationships with their customers. The introduction of new automated channels ofservice delivery has made customer participation more widely possible (Dabholkar,1994) and researchers therefore need to adopt new ways to conceptualise automatedservice quality, taking into consideration the attributes of all electronic delivery channels(Dabholkar, 1996; Meuter et al., 2000; Szymanski and Hise, 2000). A number ofmarketing scholars identify ATM, internet and telephone banking as the principalautomated delivery channels for retail banking (Joseph and Stone, 2003; Joseph et al.,1999; Radecki et al., 1997).
  12. 12. Automated service quality, customer satisfaction and their relationship with financial performance 6 In the banking sector, customers tend to use these three different automated servicedelivery channels in a complementary way (Dabholkar, 1996). Consequently, building arelationship with the customer can be developed using any one of them, but more likelyin combination (Lang and Colgate, 2003; Patricio et al., 2003; Ramsay and Smith, 1999).Customer evaluation of automated service options and their intention to use a particularoption are directly affected by perceptions of the attributes associated with a particularoption (Dabholkar, 1996). Each channel has its own attributes, which differ from theothers. The quality of each automated delivery channel shapes customers’ overallperception of automated service quality; therefore, each delivery channel has beenconsidered as a factor in the proposed automated service quality construct rather than anaggregated measurement. From a customer perspective, price is the most importantmotivation for engaging in online purchases and is the most critical comparison lement(Surjadjaja et al., 2003). Price is considered as one of the most important determinants of automated service(Iqbal et al., 2003). Furthermore, research reveals that online consumers are more price-sensitive than offline consumers. In the sphere of banking, pricing problems associatedwith perceptions of unfairness and non-competitiveness, such as fee charges and interestrates, contribute to bank switching behaviour by consumers (Colgate and Hedge, 2001;Keaveney, 1995). Consequently, price has been incorporated as an additional factor thatcould influence overall customer perceptions of automated service quality. “Core service” refers to all components of service (Kotler, 1984; Sureshchandar etal., 2002a) and the basic products being offered and, as such, explains the “what” of aservice (Brogowicz et al., 1990). Core service has features that shape and distinguish
  13. 13. Automated service quality, customer satisfaction and their relationship with financial performance 7service quality from one service provider to another (Rust and Oliver, 1994; Schneiderand Bowen, 1995). It is an essential component of automated service (Riel et al., 2001),as the product offerings and product information represent a set of elements that can havea positive impact on automated service satisfaction levels (Szymanski and Hise, 2000).Product innovation and knowledge development factors also have a significant effect onthe success of automated delivery channels (Hway-Boon and Yu, 2003). Therefore,customer perceptions of the variety of products/services offered by a bank will beconsidered as another significant factor shaping overall customer perceptions ofautomated service quality. This research establishes five factors that influencecustomer perceptions of automated service quality in banking services: ATM service,internet banking service, telephone banking service, core service, and customerperception of price.Relationship between automated service quality and financial performance Service quality is considered a critical measure of organisational performance. Itremains the most important issue in both the marketing literature generally, and servicemarketing literature specifically (Jensen and Markland, 1996). The relationship betweenservice quality and financial performance has been extensively investigated theoreticallyand empirically over the past few years in the traditional banking service context(Bloemer et al., 1998; Cronin and Taylor, 1992; Sureshchandar et al., 2002a; Yavas et al.,1997). The literature indicates that profit-oriented service organisations and academicresearchers see service quality as a key driver of profit (Mukherjee et al., 2003).However, few studies have explored the direct positive link between service quality and
  14. 14. Automated service quality, customer satisfaction and their relationship with financial performance 8organisational performance in the traditional service context (Duncan and Elliott, 2002;Yasin et al., 2004). Furthermore, this relationship has not been empirically investigated inthe automated banking context. The viability of automated banking depends upon itsprofitability and research has linked the success or failure of automated banking withservice quality (Santos, 2003). Since automated banking quality impacts on the attractionof bank customers and permits banks to cut costs sharply (Mols, 1998), the quality of theautomated banking services contributes to the improvement of profitability (Moutinhoand Smith, 2000). Therefore, with respect to the effect of automated service quality onbank profitability, it can be expected that in an automated banking service context,service quality is positively related to bank financial performance.Customer Satisfaction Customer satisfaction is generally defined as a feeling or judgment by customerstowards products or services after they have used them (Jamal and Naser, 2003).Customer satisfaction in service industries has been approached in two ways; satisfactionas a function of disconfirmation, and as a function of perception (Davis and Heineke,1998). The confirmation/disconfirmation paradigm views customer satisfaction judgmentsas the result of consumer perceptions of the gap between their expectation and perceptionof actual performance (Parasuraman et al., 1994; Oliver, 1981). However, thedisconfirmation theory has been increasingly criticised by many marketing scholars(Churchill and Suprenant, 1982; Teas, 1994). In particular, the latter author argued thatthe different definitions of expectations and the difficulties with measurementoperationalisation have undermined these models which used
  15. 15. Automated service quality, customer satisfaction and their relationship with financial performance 9expectation concepts. Thus, there was no consistency in operationalising the expectationpart of customer satisfaction in the literature. Some authors have considered that neitherdisconfirmation nor expectation had any effect on customer satisfaction (Cronin andTaylor, 1994; Churchill and Suprenant, 1982). Some researchers demonstrated a directlink between actual performance and satisfaction levels (Cadott et al., 1987). However, toavoid the debate surrounding the nature of the expectation concept in measuring customersatisfaction, this research has followed an alternative approach, which initially dependedon customers’ actual evaluations of satisfaction, rather than on the gap betweenperception and expectations (Cronin and Taylor, 1994; Teas, 1994).Relationship between customer satisfaction and financial performance Achieving customer satisfaction is a vital target for most service firms today (Jonesand Sasser, 1995) as it leads to improved profits, word-of-mouth, and less marketingexpenditure (Reichheld, 1996; Yeung et al., 2002). Many empirical studies in theliterature have found a positive relationship between customer satisfaction and financialperformance (Wiele et al., 2002; Yeung et al., 2002; Anderson et al., 1994). However, the authors found no studies pertaining specifically to financialinstitutions. Accordingly, this study will also contribute to knowledge by investigatingthis relationship within the automated service quality and banking context. Thus we cansay that in an automated banking service context, customer satisfaction is positivelyrelated to financial performance.Financial performance Performance is the outcome of all of the organisation’s operations and strategies(Wheelen and Hunger, 2002). Measuring performance accurately is critical for
  16. 16. Automated service quality, customer satisfaction and their relationship with financial performance 10accounting purposes and remains a central concern for most organisations. Performancemeasurement systems provide the foundation to develop strategic plans, assess anorganisation’s completion of objectives, and remunerate mangers (Ittner and Larcker,1998). Although assessment of performance in the marketing literature is still veryimportant, it is also complicated (Pont and Shaw, 2003). While consensual measurementof performance promotes scholarly investigations and can clarify managerial decisions,marketers have not been able to find clear, current and reliable measures of performanceon which marketing merit could be judged. Two approaches have been adopted in theliterature to measure financial performance.The first subjectively measures the performance of firms based on their own evaluationand expectations or comparison with their competitors. The second is objective, based onthe absolute measure of performance such as financial ratios (Appiah-Adu, 1998). In this study, both measures were used (Pont and Shaw, 2003) because • Other studies adopting the two approaches found a strong association between objective and subjective measures of performance. • Subjective performance measures have been found to be reasonably reliable and are widely used in international marketing and strategy literature. • The sole use of objective performance measures, such as growth, is not an accurate measure of firm performance (Dawes, 1999).A combination of the two approaches maximises the advantages and overcomes theweaknesses associated with using one only.
  17. 17. Automated service quality, customer satisfaction and their relationship with financial performance 11 RESEARCH QUESTIONS This study proposes to investigate the following questions: 1) Is there any significant relationship between Automated Service Quality (ATM,Telephone Banking, Internet Banking, Price, and Core Service) and the FinancialPerformance of a bank in the context of Bank Asia? 2) Is there any significant relationship between Customer Satisfaction and theFinancial Performance of a bank in the context of Bank Asia? RESEARCH HYPOTHESES The hypotheses derived from research questions are as follows: 1) There is a significant relationship between Automated Service Quality (ATM,Telephone Banking, Internet Banking, Price, and Core Service) and the FinancialPerformance of a bank in the context of Bank Asia. 2) There is a significant relationship between Customer Satisfaction and theFinancial Performance of a bank in the context of Bank Asia. CONCEPTUAL FRAMEWORK Automated Service Quality ATM Telephone Banking Internet Banking Price Core Service Financial Performance Customer Satisfaction
  18. 18. Automated service quality, customer satisfaction and their relationship with financial performance 12 OPERATIONAL DEFINITIONMeasured Variables Operational DefinitionsATM Operationally defined by the Joseph & Stone (2003)Telephone Banking Operationally defined by the Joseph & Stone (2003)Internet Banking Operationally defined by the Jun & Cai (2001)Price Operationally defined by the Colgate & Hedge (2001)Core Service Operationally defined by Sureshchandar et al. (2002a)Customer Satisfaction Operationally defined by Sureshchandar et al. (2002b)Financial Performance Operationally defined by Duncan & Elliot (2002, 2004)Table: Operational Definition of Measured Variables RESEARCH METHODOLOGYResearch Design The conceptual framework illustrates the name of research variables and relationshipwithin them. In this study, the researchers are going to investigate the relationshipbetween automated service quality and customer satisfaction with the financialperformance of the bank in the context of Bank Asia. Research that studies the relationship between two or more variables is also referredto as a co relational study (Cooper & Schindler, 2003). That is why a co relationalresearch design has been selected in order to find out the appropriate answers of theresearch questions and to test the hypotheses. The model also suggests this type of
  19. 19. Automated service quality, customer satisfaction and their relationship with financial performance 13design. Here, financial performance is considered as the dependent variable, whereasautomated service quality and customer satisfaction are considered as independentvariable. To gather data on the research questions, the researchers used questionnaire. Therationale behind using questionnaire to collect data is: 1) It takes less time to fill up a questionnaire. Therefore, the customers will not bereluctant in providing accurate data. 2) Personal interview is both time and cost consuming. 3) The data gathered through questionnaire is easy to put in quantitative analysis.Therefore, questionnaire is the most useful method to collect data for this study.Sampling Method There were two different types of population for this study. For this proposed studythe first population was the employees of Bank Asia Ltd. Another population was theaccount holders of Bank Asia Ltd. The sampling frame for the employees was the official register of the employees.The researcher used systematic sampling to collect the sample for this study. In most ofthe previous researches conducted on employees the researcher had used this type ofsampling (Piercy, 1995; Calleya, & Caruana, 1998). The sample size was 100 as in theprevious research which was conducted on the financial performance of banks theresearcher has chosen a sample size of 100 and found effective match (Al-Hawari &Ward, 2005). Again, in this research the researcher used sample size of 100 because oftime limitation.
  20. 20. Automated service quality, customer satisfaction and their relationship with financial performance 14 The researcher used convenient sampling to collect the second sample. A sampleconsisting of 100 individual account holders of Bank Asia Ltd were selected. The reasonbehind choosing non-probability sampling is that: 1) If the researcher would have gone for probability sampling for the customers, thena sample frame would have been needed to collect and from the list, a sample would havebeen drawn, which might have been larger enough to meet reasonable time and givencost. According to Cooper and Schindler (2003), “Cost considerations influencedecisions about the size and type of sample and also the data collection methods. 2) The current researchers are going to extend the study of Al-Hawari and Ward(2005) in which the previous researchers use the sample size of 100 and find appropriateresults as predicted. Therefore, the current researchers feel the sample size of 100 is safeto implicate in this research. This was mainly done considering the time and cost factorsbehind the research conducted.Survey Instrument To gather data the researcher used questionnaires. The questionnaire survey is themost effective method for this study to collect data for this for the following reasons- 1. Respondent’s anonymity can be maintained. 2. The researcher conducted survey on a total of 200 respondents. It was not possible to conduct personal interview because of time limitation. Therefore, questionnaire survey was the most appropriate one for this study. Structured questionnaires were used in this research to collect data from thecustomers. In the questionnaire which was developed, there were six sections such as,ATM, telephone banking, internet banking, price, core service and customer satisfaction.
  21. 21. Automated service quality, customer satisfaction and their relationship with financial performance 15ATM was measured by using 4 items developed by Joseph & Stone (2003). Telephonebanking was measured by using 6 items developed by Joseph & Stone (2003). InternetBanking was measured by using 6 items developed by Jun & Cai (2001). Price wasmeasured by using 4 items developed by Colgate & Hedge (2001). Core Service wasmeasured by using 4 items developed by Sureshchandar et al. (2002a). CustomerSatisfaction was measured by using 4 items developed by Sureshchandar et al. (2002b).All the variables were measured using a 5 point likert scale.Data Collection Procedure The present research is a unique one for Bank Asia Gulshan Branch. As a result,secondary sources of data were not available for the present study. Therefore, theresearcher required primary data to investigate the research questions. To collect datafrom the primary sources, the researcher thus used questionnaire survey method.Data Analysis Pearson’s Co relational analysis was used to find out whether any relationship existsbetween the independent and dependent variables. Correlation analysis is the statisticaltool that can be used to describe the degree to which one variable is linearly related toanother (Levin & Rubin, 1998). After collecting the data, correlation matrix for the variables were prepared and theresearcher looked for significant correlations. The researcher used Stepwise regression totest the strength of associations between the study variables. The Statistical Package for Social Science (SPSS) software was employed to analyzethe data collected from the actual survey.
  22. 22. Automated service quality, customer satisfaction and their relationship with financial performance 16ResultsReliability Coefficient and Descriptive Statistics The reliability coefficients, means and standard deviations of all the constructs in thecurrent study are displayed in Table 2. The coefficient alphas for the different constructswere computed using the reliability procedure in SPSS (version 12.0). Nunally (1978)suggested that for early stages of any research the reliability of .50-.60 is sufficient. Thereliabilities of all the constructs in this study found to be above the standard set byNunally (1978).Table 2Reliability Coefficient and Descriptive Statistics of Automated Service Quality (ATM,Telephone Banking, Internet Banking, Price, and Core Service), Customer Satisfaction,and Financial Performance Scale Number of Alpha M SD ItemsATM 4 0.824 3.5800 .68154Telephone Banking 6 0.659 3.4533 0.51251Internet Banking 6 0.531 3.2517 0.50613Price 4 0.787 3.1675 0.78981Core Service 4 0.652 3.3675 0.74489Customer Satisfaction 4 0.751 3.1650 0.70641Financial Performance 4 0.533 3.2200 0.59382Note: n = 100 Mean scores have been computed by equally weighting the mean scores of all theitems. On a five-point scale, the mean score for ATM is 3.58 (sd = 0.68). The mean score
  23. 23. Automated service quality, customer satisfaction and their relationship with financial performance 17 for Telephone Banking is 3.45 (sd = 0.51). The mean score for Internet Banking is 3.25 (sd = 0.50). The mean score for Price is 3.2 (sd = 0.79). The mean score for Core Service is 3.37 (sd = 0.74). The mean scores of Automated Service Quality of Bank Asia range from 3.16 – 3.58 indicating that consumers’ perception about the automated service quality of Bank Asia is above average. The mean score or Customer Satisfaction is 3.16 (sd = 0.70). It suggests that these customers are more or less satisfied with Bank Asia. The mean score for the Financial Performance is 3.22 (sd = 0.59). It suggests that the financial performance of Bank Asia is portrays an acceptable level. Correlation analysis A correlation analysis was conducted on all variables to explore the relationship between variables. Table 3 depicts the bivariate correlation procedure with a two tailed statistical significance at two different levels, highly significant (p<.01) and significant (p<.05). Table 3 Correlation Matrix for Automated Service Quality (ATM, Telephone Banking, Internet Banking, Price, and Core Service), Customer Satisfaction, and Financial Performance ATM Tele Int. Price Core Cust. Financial Banking Banking Service Sat. Per. ATM 1 .657(**) .196 .301(**) -.112 .475(**) .435(**) Telephone Banking 1 .197(*) .356(**) .153 .486(**) .434(**) Internet 1 .134 -.013 .125 .349(**) Banking Price 1 -.071 .539(**) .645(**)Core Service 1 -.083 .134
  24. 24. Automated service quality, customer satisfaction and their relationship with financial performance 18 CustomerSatisfaction 1 .597(**) Financial 1Performance Note: *p < .05, **p < .01. The result of correlation analysis for all the variables is shown in Table 3. It examines the correlations among Automated Service Quality (ATM, Telephone Banking, Internet Banking, Price, and Core Service), Customer Satisfaction, and Financial Performance of Bank Asia. According to Rowntree (1981) the the classification of the correlation “r” is as follows: 0.0 to 0.2 Very weak, negligible 0.2 to 0.4 Weak, low 0.4 to 0.7 Moderate 0.7 to 0.9 Strong, high, marked 0.9 to 1.0 Very strong, very high It helps interpreting the strength of relationships between variables. The variables, which had a statistical significant correlation with ATM were Telephone Banking (r = 0.66, p< .01), Price (r = 0.30, p< .01), Customer Satisfaction (r = 0.47, p< .01) and Financial Performance (r = 0.43, p< .01). Telephone Banking, Customer Satisfaction and Financial Performance had a moderate correlation with ATM, whereas Price portrayed a weak correlation with ATM in Bank Asia. Telephone Banking was found to be significantly correlated with Internet Banking (r = 0.19, p< .05), Price (r = 0.36, p < .01), customer satisfaction (r = 0.49, p< .01), and Financial Performance (r = 0.43, p< .01). Customer Satisfaction and Financial Performance of the bank had a moderate correlation with Telephone Banking. On the other hand Price and Internet Banking predicted weak
  25. 25. Automated service quality, customer satisfaction and their relationship with financial performance 19and very weak correlation with Telephone Banking simultaneously. The variablesignificantly correlated with Internet Banking was Financial Performance (r = 0.35, p<.01) and it illustrated a weak correlation. Price had a significant and moderate correlationwith Customer Satisfaction (r = 0.54, p< .01), and Financial Performance (r = 0.64, p<.01). Customer Satisfaction was significantly and moderately correlated with FinancialPerformance (r = 0.59, p< .01). In the case of Core Service no significant correlation was being found with all theother variables of the organization.Regression analysis Both stepwise and entered regression were conducted to asses the relationshipbetween the study variables.Stepwise regression A stepwise regression analysis was performed to identify the relationship betweenautomated service quality (ATM, Telephone Banking, Internet Banking, Price, and CoreService), customer satisfaction, and financial performance of Bank Asia.Table 4Stepwise regression on Financial PerformanceVariables B SE B β R2 ∆RStep 1 0.416 (Constant) 1.684 Price 0.485 0.645 0.645Step 2 0.504 0.088 (Constant) 1.200 0.211 Price 0.342 0.064 0.455 Customer 0.296 0.071 0.352 SatisfactionStep 3 0.564 0.06
  26. 26. Automated service quality, customer satisfaction and their relationship with financial performance 20 (Constant) 0.353 0.305 Price 0.325 0.060 0.432 Customer 0.280 0.067 0.333 Satisfaction Internet 0.293 0.080 0.249 BankingStep 4 0.603 0.039 (Constant) -0.226 0.349 Price 0.330 0.058 0.439 Customer 0.290 0.065 0.346 Satisfaction Internet 0.293 0.077 0.250 BankingCore Service 0.157 0.052 0.197Step 5 0.620 0.017 (Constant) -0.457 0.362 Price 0.325 0.057 0.432 Customer 0.237 0.069 0.282 Satisfaction Internet 0.269 0.076 0.229 BankingCore Service 0.166 0.051 0.208 ATM 0.130 0.064 0.150 Table 4 represents Price, Customer Satisfaction, Internet Banking, Core Service, andATM to have a statistical significant relationship with Financial Performance. TelephoneBanking was excluded from the above regression as it had little or no significantrelationship with Financial Performance. For every additional unit of Price, keeping allthe other variables constant, Financial performance will increase by 0.432 units. The variable with the most significant relation with financial performance is shownin Step 1 (Price), which has a coefficient of 0.645. Thus interpreting that, for everyadditional unit of Price the Financial performance of the Bank will increase by 0.645
  27. 27. Automated service quality, customer satisfaction and their relationship with financial performance 21units. The constant suggests that in the first step if Price is zero Financial performancewill be 1.684. Simultaneously in Step 5 we see all the five variables which has a significant relationwith financial performance. The coefficients (Table 4) here suggest that for everyadditional unit of Price, keeping all the other predictors constant, Financial performancewill increase by 0.432 units. Again, for every additional unit of Customer Satisfaction,keeping all the other predictors constant, Financial performance will increase by 0.282units. For every additional unit of Internet Banking, keeping all the other predictorsconstant, Financial performance will increase by 0.229 units. For every additional unit ofCore Service, keeping all the other predictors constant, Financial performance willincrease by 0.208 units. For every additional unit of ATM, keeping all the otherpredictors constant, Financial performance will increase by 0.150 units. The constant suggests that when all the predictors in step 5 are zero Financialperformance will be – 0.457. Thus the five predictors together explained 62% of the variance in FinancialPerformance. Price, Customer Satisfaction, Internet Banking, Core Service, and ATMexplained about 41.6%, 8.8%, 6%, 3.9% and 1.7% of the Financial Performancerespectively.Standardized (simultaneous) analysis: Entered (simultaneous) regression analysis was performed to identify the relationshipbetween automated service quality (ATM, Telephone Banking, Internet Banking, Price,and Core Service), customer satisfaction, and financial performance of Bank Asia.
  28. 28. Automated service quality, customer satisfaction and their relationship with financial performance 22Table 5Standardized (Simultaneous) Regression on Financial PerformanceVariable B SE B β R2 .622(Constant) -.409 .369ATM .164 .079 .189Telephone Banking -.081 .109 -.070Internet Banking .274 .077 .233Price .330 .058 .439Core Service .179 .054 .224Customer Satisfaction .248 .071 .295 Table 5 depicts that in Bank Asia apart from Telephone Banking the other fivepredictors; Price, Customer Satisfaction, Internet Banking, Core Service, and ATM werefound to be statistically significantly related with Financial Performance. Significantlyrelated five predictors together explained 62%.Assessment of the research hypothesisHypothesis 1: “There is a significant relationship between Automated Service Quality (ATM,Telephone Banking, Internet Banking, Price, and Core Service) and the FinancialPerformance of a bank in the context of Bank Asia.” The result of the correlational analysis states that the Automated Service Quality(ATM, Telephone Banking, Internet Banking, and Price) in Bank Asia was significantlycorrelated with their Financial Performance (r = 0.435, r = 0.434, r = 0.349, r = 0.645; p<.01). The stepwise regression analysis depicts that in Bank Asia Ltd, Automated ServiceQuality (Price, Internet Banking, Core Service, and ATM) was found to be statisticallysignificantly related with Financial Performance. Price, Internet Banking, Core Service,
  29. 29. Automated service quality, customer satisfaction and their relationship with financial performance 23and ATM explained 41.6%, 6%, 3.9%, and 1.7% respectively of the FinancialPerformance in Bank Asia. The result of the standardized regression depicts that Automated Service Quality(ATM, Internet Banking, Price, and Core Service) is positively and significantlyassociated with the Financial Performance in Bank Asia. Thus all the results were infavor of hypothesis 1 and provide support to it.Hypothesis 2: “There is a significant relationship between Customer Satisfaction and the FinancialPerformance of a bank in the context of Bank Asia” The result of the correlational analysis states that the Customer Satisfaction waspositively and significantly correlated with their Financial Performance (r = 0.597, p<.01). The stepwise regression analysis depicts that in Bank Asia Customer Satisfactionwas found to be statistically significantly related with Financial Performance. ServiceCustomer Satisfaction explains 8.8% of the Financial Performance in Bank Asia. The result of the standardized regression depicts that Customer Satisfaction ispositively and significantly associated with Financial Performance in Bank Asia. Thus allthe results were in favor of hypothesis 2 and provide support to it. LIMITATIONS OF THE STUDY A limitation of this study is the mix of longitudinal (financial performance) andcross-sectional (service quality and satisfaction) data. It is difficult to avoid this problembecause of the time limitation. Ideally service quality and satisfaction should be trackedover the same period as financial performance. However, this limitation had little impact
  30. 30. Automated service quality, customer satisfaction and their relationship with financial performance 24on results due to the absence of a significant difference among ratios over the five-yearspan, reflecting the stability and validity of these ratios. This paper presents an initial phase of a sustainable research program and as such haslimited itself in terms of research design. First of all, researchers have limited access tothe related literature review due to lack of journals available on the measured variables.As a result, researchers have limited resources to deal with. Second, data collection isrestricted within Dhaka city only, which may fail to represent the factual scenario of therelationship between measured variable. Finally, this research was limit to Bank AsiaGulshan Branch only rather than whole banking sector of Bangladesh. So the researchersdid not have the view on total banking sector of this country, which limits thegeneralization of the findings. SIGNIFICANCE OF THE STUDY This study is significant for the following reasons: - 1) The findings of this research effort may have practical implications for serviceproviders that strive to organize their service offerings in order to accomplish theircorporate objectives. 2) The study will help or assist companies to enhance their understanding of theactual employee service quality to the response to their work climate, so it will be easyfor the companies to make decision regarding internal marketing. 3) This research may encourage further study and provide useful guidelines for thesetypes of researches.
  31. 31. Automated service quality, customer satisfaction and their relationship with financial performance 25 RECOMMENDATION It is apparent that the availability of information on web sites (content), accuracy ofonline transactions, ease of use, provision of updated information (timeliness),attractiveness of bank web sites (aesthetics), and security are not the only attributes thatinfluence customer satisfaction. Accordingly, it is necessary for bank-marketingstrategists to find the other attributes that customers use to judge service quality, such asnavigational and visual characteristics (D’Angelo and Little, 1998), feedback and productlist sections (Lohse and Spiller, 1999), and playfulness (Liu and Arnett, 2000). Moreover,responding more quickly to customers’ needs and providing customers with theopportunity to help themselves via web links are other aspects which could improvestandards of internet banking quality. By doing so, banks should be more able to helpcustomers participate, learn and act, enjoy good two-way communication, and have apleasant and enjoyable experience (Rao, 2002). Ultimately, the main focus of attention for management should be on customersatisfaction. Identification of the various factors, besides automated service quality, iscritical to overall customer satisfaction. These factors could include traditional servicequality, value, trust, bank reputation, and image (Bloemer et al., 1998; Nguyen andLeblanc, 1998; Ranaweera and Prabhu, 2003). A better understanding of the sequence ofthe relationship between automated service quality, satisfaction, and bank profitabilitycould help ensure clearer targeting of limited marketing resources (Caruana, 2002). Thatis a marketing planning issue. Finally, bank mangers need to remain up to date with future trends; in other words,they need marketing intelligence. If automated service quality converges and becomes a
  32. 32. Automated service quality, customer satisfaction and their relationship with financial performance 26standard and non-differentiated attribute among all banks, it will be easy for customers tocompare and switch from one bank to another (Evans and Wurster, 1997). If so, it will bedifficult for banks to maximize their profits out of the quality aspects of automatedservices. CONCLUSION In view of the findings, the provision of high standards of automated service qualityand maintaining a significant level of customer satisfaction will lead to improvedfinancial performance. While this research found that telephone banking had no or littlesignificant relationship with financial performance, improvement in the quality aspects ofthis dimension could enhance overall satisfaction and in turn may boost the financialperformance of Bank Asia Ltd. Finally, this research will encourage further study anduseful guidelines for these types of researches. TIMELINE FOR THE PROPOSAL WRITING2006 June Research proposal writing and literature review2006 July Data collection procedure2006 August 01 Data analysis and interpretation of findings2006 August 15 Final redraft of complete manuscript.2006 August 24 Submission of research paper
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  42. 42. Automated service quality, customer satisfaction and their relationship with financial performance 36 Appendix 1 Research Questionnaire for the Account Holders
  43. 43. Automated service quality, customer satisfaction and their relationship with financial performance 37 Scale itemsQuestion items concerning ATM 1 2 3 4 5 Strongly Disagree Neither Agree Agree Strongly Agree Disagree Nor Disagree1. Bank Asia has significant numbers of ATM Booths. 1 2 3 4 52. The ATM Booths are at secure locations. 1 2 3 4 53. The ATM has a user friendly system. 1 2 3 4 54. The ATM functions all the time. 1 2 3 4 5
  44. 44. Automated service quality, customer satisfaction and their relationship with financial performance 38Question items concerning Telephone Banking 1 2 3 4 5 Strongly Disagree Neither Agree Agree Strongly Agree Disagree Nor Disagree1. You are exposed to a pleasant musical background. 1 2 3 4 52. There are reasonable numbers of voice prompts. 1 2 3 4 53. The waiting time is short. 1 2 3 4 54. The instructions are clear. 1 2 3 4 55. You find the system reliable. 1 2 3 4 56. There are sufficient telephone banking options. 1 2 3 4 5
  45. 45. Automated service quality, customer satisfaction and their relationship with financial performance 39Question items concerning Internet Banking 1 2 3 4 5 Strongly Disagree Neither Agree Agree Strongly Agree Disagree Nor Disagree1. All needed information are available at the Bank Asia 1 2 3 4 5 website.2. It is easy to use. 1 2 3 4 53. The site provides security. 1 2 3 4 54. Transactions are error free. 1 2 3 4 55. The website is attractive. 1 2 3 4 56. Information are up to date 1 2 3 4 5
  46. 46. Automated service quality, customer satisfaction and their relationship with financial performance 40Question items concerning Price 1 2 3 4 5 Strongly Disagree Neither Agree Agree Strongly Agree Disagree Nor Disagree1. Service charges are adequately explaining. 1 2 3 4 52. The fees are acceptable. 1 2 3 4 53. The fees are competitive. 1 2 3 4 54. Bank statements provide clear understanding of the 1 2 3 4 5 service charges.
  47. 47. Automated service quality, customer satisfaction and their relationship with financial performance 41Question items concerning Core Service 1 2 3 4 5 Strongly Disagree Neither Agree Agree Strongly Agree Disagree Nor Disagree1. The Bank provides wide range of services. 1 2 3 4 52. The service features are diverse. 1 2 3 4 53. Most of the service options are available. 1 2 3 4 54. The Bank follows the most advanced technology. 1 2 3 4 5
  48. 48. Automated service quality, customer satisfaction and their relationship with financial performance 42Question items concerning Customer Satisfaction 1 2 3 4 5 Strongly Disagree Neither Agree Agree Strongly Agree Disagree Nor Disagree1. You ate satisfied with the staff of Bank Asia. 1 2 3 4 52. You are satisfied with the physical surrounding of Bank 1 2 3 4 5 Asia.3. The Bank fees are satisfactory. 1 2 3 4 54. The delivery service process meets your needs. 1 2 3 4 5
  49. 49. Automated service quality, customer satisfaction and their relationship with financial performance 43 Appendix 2 Research Questionnaire for the Employees
  50. 50. Automated service quality, customer satisfaction and their relationship with financial performance 44Question items concerning Financial Performance 1 2 3 4 5 Strongly Disagree Neither Agree Agree Strongly Agree Disagree Nor Disagree1. Asset utilization of Bank Asia is satisfactory 1 2 3 4 52. The Return on Asset for Bank Asia is satisfactory 1 2 3 4 53. The Return on Equity for Bank Asia is satisfactory 1 2 3 4 54. The business level at which Bank Asia stands is 1 2 3 4 5 satisfactory
  51. 51. Automated service quality, customer satisfaction and their relationship with financial performance 45 Appendix 3 SPSS Outputs
  52. 52. Automated service quality, customer satisfaction and their relationship with financial performance 46Reliability (ATM) Warnings The space saver method is used. That is, the covariance matrix is not calculated or used in the analysis. Case Processing Summary N % Cases Valid 100 100.0 Excluded 0 .0 (a) Total 100 100.0a Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbachs Alpha N of Items .824 4Reliability (TELEPHONE BANKING) Warnings The space saver method is used. That is, the covariance matrix is not calculated or used in the analysis. Case Processing Summary N % Cases Valid 100 100.0 Excluded 0 .0 (a) Total 100 100.0a Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbachs Alpha N of Items .659 6
  53. 53. Automated service quality, customer satisfaction and their relationship with financial performance 47Reliability (INTERNET BANKING) Warnings The space saver method is used. That is, the covariance matrix is not calculated or used in the analysis. Case Processing Summary N % Cases Valid 100 100.0 Excluded 0 .0 (a) Total 100 100.0a Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbachs Alpha N of Items .531 6Reliability (PRICE) Warnings The space saver method is used. That is, the covariance matrix is not calculated or used in the analysis. Case Processing Summary N % Cases Valid 100 100.0 Excluded 0 .0 (a) Total 100 100.0a Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbachs Alpha N of Items .787 4
  54. 54. Automated service quality, customer satisfaction and their relationship with financial performance 48Reliability (CORE SERVICE) Warnings The space saver method is used. That is, the covariance matrix is not calculated or used in the analysis. Case Processing Summary N % Cases Valid 100 100.0 Excluded 0 .0 (a) Total 100 100.0a Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbachs Alpha N of Items .652 4Reliability (CUSTOMER SATISFACTION) Warnings The space saver method is used. That is, the covariance matrix is not calculated or used in the analysis. Case Processing Summary N % Cases Valid 100 100.0 Excluded 0 .0 (a) Total 100 100.0a Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbachs Alpha N of Items .751 4
  55. 55. Automated service quality, customer satisfaction and their relationship with financial performance 49Reliability (FINANCIAL PERFORMANCE) Warnings The space saver method is used. That is, the covariance matrix is not calculated or used in the analysis. Case Processing Summary N % Cases Valid 100 100.0 Excluded 0 .0 (a) Total 100 100.0a Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbachs Alpha N of Items .533 4Descriptives Descriptive Statistics N Minimum Maximum Mean Std. Deviation ATM 100 1.75 4.75 3.5800 .68154 Telephone Banking 100 2.17 4.67 3.4533 .51251 Internet Banking 100 2.17 4.67 3.2517 .50613 Price 100 1.50 5.00 3.1675 .78981 Core Service 100 1.50 4.75 3.3675 .74489 Customer Satisfaction 100 1.25 4.75 3.1650 .70641 Financial Performance 100 2.00 4.75 3.2200 .59382 Valid N (listwise) 100
  56. 56. Automated service quality, customer satisfaction and their relationship with financial performance 50 Correlation Telephone Internet Core Customer Financial ATM Banking Banking Price Service Satisfaction PerformanceATM Pearson 1 .657(**) .196 .301(**) -.112 .475(**) .435(**) Correlation Sig. (2-tailed) . .000 .051 .002 .267 .000 .000 N 100 100 100 100 100 100 100Telepho Pearsonne Correlation .657(**) 1 .197(*) .356(**) .153 .486(**) .434(**)Banking Sig. (2-tailed) .000 . .049 .000 .128 .000 .000 N 100 100 100 100 100 100 100Internet Pearson .196 .197(*) 1 .134 -.013 .125 .349(**)Banking Correlation Sig. (2-tailed) .051 .049 . .185 .895 .215 .000 N 100 100 100 100 100 100 100Price Pearson .301(**) .356(**) .134 1 -.071 .539(**) .645(**) Correlation Sig. (2-tailed) .002 .000 .185 . .481 .000 .000 N 100 100 100 100 100 100 100Core Pearson -.112 .153 -.013 -.071 1 -.083 .134Service Correlation Sig. (2-tailed) .267 .128 .895 .481 . .413 .185 N 100 100 100 100 100 100 100Custom Pearsoner Correlation .475(**) .486(**) .125 .539(**) -.083 1 .597(**)Satisfaction Sig. (2-tailed) .000 .000 .215 .000 .413 . .000 N 100 100 100 100 100 100 100Financia Pearsonl Correlation .435(**) .434(**) .349(**) .645(**) .134 .597(**) 1Performance Sig. (2-tailed) .000 .000 .000 .000 .185 .000 . N 100 100 100 100 100 100 100 ** Correlation is significant at the 0.01 level (2-tailed). * Correlation is significant at the 0.05 level (2-tailed).
  57. 57. Regression (STEP WISE) Variables Entered/Removed(a) Variables VariablesModel Entered Removed Method1 Stepwise (Criteria: Probability -of-F-to- enter <= Price . .050, Probability -of-F-to- remove >= .100).2 Stepwise (Criteria: Probability -of-F-to- Customer enter <= . Satisfaction .050, Probability -of-F-to- remove >= .100).3 Stepwise (Criteria: Probability -of-F-to- Internet enter <= . Banking .050, Probability -of-F-to- remove >= .100).4 Stepwise (Criteria: Probability -of-F-to- Core enter <= . Service .050, Probability -of-F-to- remove >= .100).
  58. 58. Automated service quality, customer satisfaction and their relationship with financial performance 52 5 Stepwise (Criteria: Probability -of-F-to- enter <= ATM . .050, Probability -of-F-to- remove >= .100).a Dependent Variable: Financial PerformanceModel Summary Adjusted R Std. Error ofModel R R Square Square the Estimate Change Statistics R Square Sig. F Change F Change df1 df2 Change1 .645(a) .416 .410 .45619 .416 69.746 1 98 .0002 .710(b) .504 .493 .42268 .088 17.156 1 97 .0003 .751(c) .564 .551 .39797 .061 13.421 1 96 .0004 .776(d) .603 .586 .38198 .038 9.205 1 95 .0035 .787(e) .620 .599 .37582 .017 4.139 1 94 .045a Predictors: (Constant), Priceb Predictors: (Constant), Price, Customer Satisfactionc Predictors: (Constant), Price, Customer Satisfaction, Internet Bankingd Predictors: (Constant), Price, Customer Satisfaction, Internet Banking, Core Servicee Predictors: (Constant), Price, Customer Satisfaction, Internet Banking, Core Service, ATM Coefficients(a) Unstandardized Standardized Coefficients Coefficients Model B Std. Error Beta t Sig. 1 (Constant) 1.684 .189 8.891 .000 Price .485 .058 .645 8.351 .000 2 (Constant) 1.200 .211 5.691 .000 Price .342 .064 .455 5.355 .000 Customer .296 .071 .352 4.142 .000 Satisfaction 3 (Constant) .353 .305 1.160 .249 Price .325 .060 .432 5.380 .000
  59. 59. Automated service quality, customer satisfaction and their relationship with financial performance 53 Customer .280 .067 .333 4.157 .000 Satisfaction Internet .293 .080 .249 3.663 .000 Banking 4 (Constant) -.226 .349 -.647 .519 Price .330 .058 .439 5.699 .000 Customer .290 .065 .346 4.485 .000 Satisfaction Internet .293 .077 .250 3.818 .000 Banking Core Service .157 .052 .197 3.034 .003 5 (Constant) -.457 .362 -1.263 .210 Price .325 .057 .432 5.691 .000 Customer .237 .069 .282 3.437 .001 Satisfaction Internet .269 .076 .229 3.524 .001 Banking Core Service .166 .051 .208 3.240 .002 ATM .130 .064 .150 2.034 .045a Dependent Variable: Financial PerformanceExcluded Variables(f) Collinearity Statistics Partial Model Beta In t Sig. Correlation Tolerance 1 ATM .265(a) 3.449 .001 .331 .909 Telephone .234(a) 2.935 .004 .286 .873 Banking Internet .268(a) 3.642 .000 .347 .982 Banking Core Service .181(a) 2.388 .019 .236 .995 Customer .352(a) 4.142 .000 .388 .709 Satisfaction 2 ATM .170(b) 2.123 .036 .212 .772 Telephone .134(b) 1.633 .106 .164 .751 Banking Internet .249(b) 3.663 .000 .350 .978 Banking Core Service .197(b) 2.838 .006 .278 .992 3 ATM .130(c) 1.692 .094 .171 .754 Telephone .093(c) 1.191 .237 .121 .734 Banking Core Service .197(c) 3.034 .003 .297 .992 4 ATM .150(d) 2.034 .045 .205 .749 Telephone .043(d) .550 .584 .057 .695 Banking 5 Telephone -.070(e) -.751 .455 -.078 .463 Bankinga Predictors in the Model: (Constant), Priceb Predictors in the Model: (Constant), Price, Customer Satisfactionc Predictors in the Model: (Constant), Price, Customer Satisfaction, Internet Bankingd Predictors in the Model: (Constant), Price, Customer Satisfaction, Internet Banking, Core Servicee Predictors in the Model: (Constant), Price, Customer Satisfaction, Internet Banking, Core Service, ATMf Dependent Variable: Financial Performance

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