CHAPTER 2: LITERATURE REVIEW and THEORETICAL MODEL
2.2 Overall internet banking service quality
2.2.3 Impact ofonline information system quality dimensions onoverall internet
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 user- based 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 well- known 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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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. “Accuracy” is accurate online transactions and there're no errors in interface and contents (Jun and Cai, 2001). Banks must provide accurate account information of customers’ financial transactions. Customers expect Internet banking transactions to be accurate and free of errors (Goi, 2005). Customers are more sensitive with finding more accurate information, security and fast search facilities (Cao,2005).
Michel et al.(2008) measured “accuracy” by online transactions and the information on internet banking web site are always accurate and the online transactions are accurately dealt with. Jun and Cai (2001, pp.287-288) with their research indentified
“security” is one of 17 dimensions of internet banking service quality. So our six hypothesis is:
H1f: Accuracy is positively related to Overall internet banking service quality