The Relationship between Service Quality Dimensions, Customer Satisfaction and Loyalty in Technology based Self Service Banking

The technology based self service banking (TBSSB) refers to automated banking services that customer avail without interaction with bank employees. This paper investigates the relationship between dimensions of TBSSB service quality, customer satisfaction and loyalty. The paper also examines the mediating role of customer satisfaction in the relationship. The dimensions are identified and confirmed by conducting EFA and CFA respectively using SPSS 16.0 and AMOS 20.0. Dimensions of TBSSB SQ are identified as Convenience, Reliability & Security, Responsiveness and Personalization. AMOS 20.0 is used to investigate the relationship between dimensions using SEM. It is found that Convenience and personalization have significant effect on customer satisfaction, and personalization and customer satisfaction have significant effect on loyalty. Customer satisfaction is also confirmed as a mediating factor. This study may help bank managers to investigate the customers' quality perceptions about TBSSB services and enlighten banks about the aspects of services to be focused.