What motivated Malaysians in banking with the service provider in the post COVID-19 pandemic era?

Article Sidebar

DOWNLOAD PDF
Published: Jul 30, 2023
DOI: https://doi.org/10.33093/ipbss.2023.3.2.2
Keywords:
SERVQUAL model, Customer satisfaction, Customer loyalty, Bank services, Customer survey

Main Article Content

Kar Hoong Chan
Faculty of Management, Multimedia University, Malaysia.
https://orcid.org/0000-0001-7026-1343
Yee Yen Yuen
Faculty of Business, Multimedia University, Malaysia.
https://orcid.org/0000-0003-2257-8906
Pei Chee Ng
Commerz Trade Services Sdn. Bhd., Malaysia

Abstract

The fierce competitive environment in Malaysian banking industry has pressured the service providers into focusing on the improvement of their customers loyalty.This study aims to examine the antecedents of customer satisfaction to promote customer loyalty. This study adapted SERVQUAL model to explain the influencing factors. Hundred and one valid and reliable responses were used for data analysis.  The findings suggested positive relationships between tangibility, assurance, and empathy on customer satisfaction. The relationship between customer satisfaction and customer loyalty is significantly positive. Contrary to previous findings, responsiveness and reliability are not significant in explaining customer satisfaction. This study is one of the very few studies in Malaysia and Asia to propose effective measures to enhance customer satisfaction and loyalty post COVID-19 pandemic era.

Article Details

How to Cite
Chan, K. H., Yuen, Y. Y., & Ng, P. C. (2023). What motivated Malaysians in banking with the service provider in the post COVID-19 pandemic era?. Issues and Perspectives in Business and Social Sciences, 3(2), 38–47. https://doi.org/10.33093/ipbss.2023.3.2.2
Issue
2023: Volume 3 Issue 2
Section
Research papers
Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

References

Abdul, G., Reshma, P., & Shahed, M. (2021). Understanding the Service Quality and Customer Satisfaction of Mobile

Banking in Bangladesh: Using a Structural Equation Model. Global Business Review, 22(1), 85–100.

Anjalika, & Priyanath. (2018). Effect of Service Quality on Customer Satisfaction: An Empirical Study of Customers who have Bank Accounts in both Public and Private Banks in Sri Lanka W. International Journal of Marketing and Technology, 8(1), 11–36..

Auka, D. O., Bosire, J. N., & Matern, V. (2013). Perceived Service Quality and Customer Loyalty in Retail Banking in Kenya. British Journal of Marketing Studies, 1(3), 32–61.

Bank Negara Malaysia. (2020). Economic and Monetary Review 2020. Retrieved from https://www.bnm.gov.my/docu

ments/20124/3026377/emr2020_en_book.pdf ents/20124/3026377/emr2020_en_book.pd

Cudjoe, A. G., Anim, A. P., & Nyanyofio, J. G. N. T. (2015). Service Quality and Customer Satisfaction in the Ghanaian Banking Industry (A Case of Ghana Commercial Bank). European Journal of Business and Management, 7(3), 123–141.

Du, Y., & Tang, Y. (2014). A Literature Review on the Relationship Between Service Quality and Customer Loyalty. Business and Management Research, 3(3), 27–33.

Al-Slehat, Z. A. F. (2021). Determining the Effect of Banking Service Quality on Customer Loyalty Using Customer Satisfaction as a Mediating Variable: An Applied Study on the Jordanian Commercial Banking Sector. International Business Research, 14(4), 58–70.

Fida, B. A., Ahmed, U., Al-Balushi, Y., & Singh, D. (2020). Impact of Service Quality on Customer Loyalty and Customer Satisfaction in Islamic Banks in the Sultanate of Oman. SAGE Open, 10(2), 1–10.

Gazi, M. A. I., Rahaman, M. A., Hossain, G. M. A., Ali, M. J., & Mamoon, Z. R. (2021). An Empirical Study of Determinants of Customer Satisfaction of Banking Sector: Evidence from Bangladesh. Journal of Asian Finance, Economics and Business, 8(2), 497–503.

Hair, J. F., William, C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis (7th Edition). Pearson Prentice Hall.

Hamzah, A., & Shamsudin, M. (2020). Why Customer Satisfaction is Important to Business? Journal of Undergraduate Social Science and Technology, 2(1), 1–14.

Hamzah, Z. L., Lee, S. P., & Moghavvemi, S. (2017). Elucidating Perceived Overall Service Quality in Retail Banking. International Journal of Bank Marketing, 35(5), 781–804.

Iglesias, O., Markovic, S., & Rialp, J. (2019). How does Sensory Brand Experience Influence Brand Equity? Considering the Roles of Customer Satisfaction, Customer Affective Commitment, and Employee Empathy. Journal of Business Research, 96(May 2018), 343–354.

Islam, R., Ahmed, S., Rahman, M., & Al Asheq, A. (2020). Determinants of Service Quality and its Effect on Customer Satisfaction and Loyalty: An Empirical Study of Private Banking Sector. TQM Journal, 33(6), 1163 – 1182.

Kant, R., & Jaiswal, D. (2017). The Impact of Perceived Service Quality Dimensions on Customer Satisfaction: An Empirical Study on Public Sector Banks in India. International Journal of Bank Marketing, 35(3), 411–430.

Khan, M. M., & Fasih, M. (2014). Impact of Service Quality on Customer Satisfaction and Customer Loyalty: Evidence from Banking Sector. Pakistan Journal of Commerce and Social Sciences, 8(2), 331–354.

Kheng, L. L., Mahamad, O., Ramayah, T., & Mosahab, R. (2010). The Impact of Service Quality on Customer Loyalty: A Study of Banks in Penang, Malaysia. International Journal of Marketing Studies, 2(2), 57–66.

Kibret, A. T., & Dinber, G. N. (2016). Service Quality, Customer Satisfaction and Loyalty of Commercial Banks in Ethiopia. International Journal of Innovation and Scientific Research, 28(1), 51–65.

Lau, M. M., Cheung, R., Lam, A. Y. C., & Chu, Y. T. (2013). Measuring Service Quality in the Banking Industry: A Hong Kong Based Study. Contemporary Management Research, 9(3), 263–282.

Leninkumar, V. (2016). The Effect of Service Quality on Customer Loyalty. European Journal of Business and Management, 8(33), 44–49.

Mamo, N. (2015). Service Quality Practices and Customer Satisfaction in Commercial Banks in Kenya. Research Project. University of Nairobi.

Melaku, M. (2015). Impact of Service Quality on Customer Satisfaction: The Case of Bank of Abyssinia S.C. Research Project. Addis Ababa University.

Minta, N. K., & Stephen, O. (2017). Importance-Performance Matrix Analysis (IPMA) of Service Quality and Customer Satisfaction in the Ghanaian Banking Industry. International Journal of Academic Research in Business and Social Sciences, 7(7), 532–550.

Moghavvemi, S., Lee, S. T., & Lee, S. P. (2018). Perceived Overall Service Quality and Customer Satisfaction: A Comparative Analysis between Local and Foreign Banks in Malaysia. International Journal of Bank Marketing, 36(5), 908–930.

Oliver, R. L. (1999). Whence Consumer Loyalty? Both. Journal of Marketing, 63(special issue), 33–44.

Osman, Z., Mohamad, L., & Khuzaimah Mohamad, R. (2015). An Empirical Study of Direct Relationship of Service Quality, Customer Satisfaction and Bank Image on Customer Loyalty in Malaysian Commercial Banking Industry. American Journal of Economics, 5(2), 168–176.

Otto, A. S., Szymanski, D. M., & Varadarajan, R. (2020). Customer Satisfaction and Firm Performance: Insights from Over a Quarter Century of Empirical Research. Journal of the Academy of Marketing Science, 48(3), 543–564.

Pakurar, M., Haddad, H., Nagy, J., Popp, J., & Olah, J. (2019). The Service Quality Dimensions that Affect Customer Satisfaction in the Jordanian Banking Sector. Sustainability (Switzerland), 11(4), 1–24.

Parasuraman, Zeithaml, V. A. & Berry, L.L. (1985). A Conceptual Model of Service Quality and Its Implications for Future Research. The Journal of Marketing, 49(4), 41–50.

Quyet, T. Van, Vinh, N. Q., & Chang, T. (2015). Service Quality Effects on Customer Satisfaction in Banking Industry. International Journal Science and Technology, 8(8), 199–206.

Rafikul, I., Ahmed, S., & Razak, D. A. (2015). Identifying the Gaps between Customer Expectations and Perceptions on Service Quality Dimensions of Islamic banks in Malaysia. International Journal of Quality and Service Sciences, 7(4), 424–441.

Rahman, Zhang, Atikur, & Julfikar. (2020). Investigating the Effect of Service Quality on Bank Customers’ Satisfaction in Bangladesh. Journal of Asian Finance, Economics and Business, 7(10), 823–829.

San, O. T., Theng, L. Y., & Heng, T. B. (2011). A Comparison on Efficiency of Domestic and Foreign Banks in Malaysia: A DEA Approach. Business Management Dynamics, 1(4), 33–49.

Sayani, H. (2015). Customer Satisfaction and Loyalty in the United Arab Emirates Banking Industry. International Journal of Bank Marketing, 33(3), 351–375.

Sharma, S. (2016). Using SERVQUAL to Assess the Customer Satisfaction Level: A Study of an Urban Cooperative Bank. Journal of Economics and Public Finance ISSNOnline), 2(1), 2377–1046.

Starpicks. (2021, October 22). Banking Made Easy with the Swipe of Your Fingertips on Clicks. The Star. Retrieved from: https://www.thestar.com.my/business/business-news/2021/10/22/banking-at-your-fingertips-made-easy-via-cimb-clicks.

Sugiarto, S., & Octaviana, V. (2021). Service Quality (SERVQUAL) Dimensions on Customer Satisfaction: Empirical Evidence from Bank Study. Golden Ratio of Marketing and Applied Psychology of Business, 1(2), 93–106.

Tan, L. H., Chew, B. C., & Hamid, S. R. (2016). Relationship between Service Quality and Customer Satisfaction: A Study of Malaysian Banking Industry. International Journal of Productivity and Quality Management, 19(1), 38–50.

Tan, L. H., & Marimuthu, M. (2014). Relationship Between Service Quality and Customer Satisfaction: A Study of Malaysian Banking Industry. Journal of Technology Management and Technopreneurship, 2(2), 53–72

Tesfaye, B. (2015). The Impact of Service Quality on Customer Satisfaction. The Case of Commercial Bank of Ethiopia. Thesis. St. Mary’s University.

Tweneboah-Koduah, E. Y., & Farley, D. A. Y. (2016). Relationship between Customer Satisfaction and Customer Loyalty in the Retail Banking Sector of Ghana. International Journal of Business and Management, 11(1), 249–262.

Vasumathi, A., & Subashini, R. (2015). The Influence of SERVQUAL Dimensions on Customer Loyalty in Banking Sector, India - An Empirical Study. International Journal of Services and Operations Management, 21(3), 370–388.

Vinot, J., Letondal, C., Pauchet, S., & Chatty, S. (2016). Could Tangibility Improve the Safety of Touch-based Interaction? Exploring A New Physical Design Space for Pilot-System Interfaces. HCI-Aero '16, September 14-16, 2016, Paris, France.

Wu, D. D., & Olson, D. L. (2020). Pandemic Risk Management in Operations and Finance. Modeling the Impact of COVID-19. Springer.

Yoo, M., & Bai, B. (2013). Customer Loyalty Marketing Research: A Comparative Approach between Hospitality and Business Journals. International Journal of Hospitality Management, 33(June 2013), 166–177.