An Overview of Electronic Services and Electronic Banking Quality

An Overview of Electronic Services and Electronic Banking Quality Omidreza Alihosseini Department of EMBA, Science and Research Branch, Islamic Azad University, Guilan, Iran Alihosseini@iaurasht.ac.ir Abstract Something makes inevitable the research is identify factors affecting on the quality and provide electronic service with quality consistent with the expectations of customers that have impact on the customer satisfaction and consequently on their future purchasing behavior. Growth and increasing communication technology has created a revolutionary in the various sizes of human life and organizational performance. This technology changed working methods and attitudes, organizations and governments and led to the creation of new industries, new jobs and creativity in the affairs. For banks this study is necessary because, according to carried investments by banks for developing E-banking services, should be follow identification quality of service using acquired information provide this new technology as that have been more matches customers' demands and expectations. Keyword: Quality Services, Banking Services, Electronic Service Quality, Customer Satisfaction Introduction The increasing development globalization and element of competition occurred enormous changes management, banking and even governance and consequently traditional methods is transformed to modern. Undoubted in such a situation progressive and innovative organizations should equipped own with the most advanced technology and information and implementation techniques in order to responsive to future changes of technology and infrastructure. Also banking system was not exception and with the advent the phenomenon of electronic banking has been developments wonders practices of customer service around the world. (Raechel Johns 2008) For banks this study is necessary because, according to carried investments by banks for developing E-banking services, should be follow identification quality of service using acquired information provide this new technology as that have been more matches customers' demands and expectations. (Haghighi 2007) Literature Beikzad and Molavi in 2009 in research as "Survey electronic service quality and e-customer satisfaction in the Keshavarzi Bank" deal to provide the Zethamel's model and achieve conclude there is a significant relationship between electronic service quality and customer satisfaction. A study in 2010 was performed by Vinh and Liqing as "New Market for Internet Bank Service" in the Hong Kong. The results showed that younger people and in the age range 16 to 29 years have more positive attitude and feel to IBS than other people. A study in 2010 was performed by Michael as "Customer behavior in the banking industry" in the China. The results showed that reputation, quality of service, effective advertising, switching costs, distance and demographic variables such as younger persons have positive effect on the behavior of bank customers. 55

Quality In the traditional attitudes, products quality be assessed in light of the characteristics and physical traits such as strength and reliability, but nowadays many corporations are aware best and most effective product in the world is not considered ideal, if do not estimate customers' needs, wants and expectations. Accordingly, quality is defined as the degree to which a product has adaptation with customers' expectations and their characteristics. (Deming 1996) Services Due to the variety of services definition of services always has been difficult. Something does complicating it the fact that due to being intangible majority data and output, often understanding and diagnosis of ways of service delivery and performance is not easy. Philip Kotler believes serving is activities or interests of subtle and impalpable that the one hand offers the other side and has not followed ownership of something. Served producing may be dependent to the physical goods or not. (Kotler 2005) Quality of Service If a customer be satisfied company or bank, can be noted its effects on the company or institution profitability to 3 follow way: 1. A satisfied customers transfers their satisfaction to others and have advertises for company or bank indirectly. 2. The same customers repeat purchase or using their services. 3. These customers will have tendency for purchasing of goods or new bank's services. Obviously, if not be given according necessary to issue of electronic service quality public and private banks and customer be unhappy from bank will be have adverse effects on the discontent of bank profitability. (Aydin 2005) Banking Services In the banking system service may be offered by machine (ATM), person (Consultant) or a combination of both (Cashier). (Venous & Safaeian 2002) Electronic Services Electronic services are information services that on the one hand customers' information are collected through the process of e-services could be compilation and analysis by suppliers of these services and be used as a basis for customer service, and on the other hand, exchange of electronic services and their delivery for customers can be done through the exchange of information with service providers. (Pour Babaei 2008) Electronic Service Quality Zethaml (2004) is defined electronic service quality as "A admitted will facilitate effective and efficient purchase, sale and delivery of products and services from a website." (Griffith 2005) The Main Factors Affecting on the Internet Customer Loyalty Security: It is a key factor for creating customer trust. (Bansal 2007) Trust: Members are needs for payment the one sure way and lack of theft or abuse of their money. (Prashant Palvia 2009) 56

Recommendation: Recommendations and counseling to potential and current customers are effective on the customer trust in the website. (Bansal 2007) Free from Error: In order an organization having an effective and dynamic relation with its customers should be ensure that hot and first batch news be transferred to website. Complete Orders: Ensuring how complete customer's orders and the ability to follow receipt of purchased goods is significant feature that is necessary for the internet retailer. Community: Many websites provide capability communication between member customers. (Rowley 2004) Wallpaper: Studies have shown that wallpaper can be indicative firm's characteristics and its products dramatically. (Wang 2007) The Logo: This characteristic is effective alone in create trust and eliminate the danger. Graphical Resolution: Graphic images, logos and animations are shown as visual be caused enhance brand value and refer again to members to corporate website. (Madhoushi 2005) The Research Model Figure 1: The Research Model (Molla Hoseini 2010) Internet Banking Internet banking is defined as providing banking services through a public accessible network (Internet or Intranet) that have high security. Extension computer programs based on network, 57

not only be caused reduction costs per transaction, rather it is tweaking Services significantly. (Hoseini 2006) Importance of Internet Banking 1. Customers can in 24 hours unceasing use banking services and other services provided. 2. Despite wide range in the world advertising and marketing costs via the internet is very inexpensive and affordable. 3. It has capability offer information and exchange ideas with customers, simultaneously. 4. Via the internet in addition to providing permanent information to customers and marketing uninterrupted can achieve to very large digital information resources and use them for marketing goals. 5. There are many potential capabilities in the internet for creating and expand of customer relationship management systems (CRM), public relations and opinions from customers. (Bansal 2007) The overall can benefits of internet marketing development for banks and financial institutions summarized following as: 1. Bank's known and promote (As a trademark) in monetary and financial markets 2. Attract new customers 3. Increased trust and motivation of the bank's old customers 4. Alignment with customers' needs 5. Ease of access to modern financial markets. 6. Possible to specialists recruiting in a shorter time and lower cost 7. Improve the quality of bank's investment than assets 8. Improvement of bank capital adequacy ratio (Griffith 2005) Conclusions Nowadays, maintain and strengthen of customer loyalty is a very important topic for firms and especially banks, because intensified competition and approaching level of services quality and quantity in field of customers provide services that could be attention of customers and customers being permanent customer is very important and necessary. Most of the research results show that quality of service is very important in the increase customer loyalty. Internet banking is defined as providing banking services through a public accessible network (Internet or Intranet) that have high security. According to importance of e-banking, electronic service quality has significant role in the extension and increase customer confidence. References 1. Aydin, S., and Ozer, G. (2005), The analysis of antecedents of consumer loyalty in the Turkish mobile telecommunication market, European Journal of Marketing, Vol. 39, No. 7/8, pp. 910-925 2. Bansal HS, McDougall GHG, Dikolli SS, Sedatole KL. (2007); " Relating esatisfactionto Behavioral Outcomes: an Empirical Study". J Serv Mark; 18(4/5), pp.290 302. 3. Beikzad, Jafar. Molavi, Zahra. 2009. E-Service Quality and Customer Satisfaction. Publication of Banks and Economics. No. 104. PP: 39-44 58

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