Factors Influencing Clients’ Satisfaction of Agent Banking: An Empirical Exploration
DOI:
https://doi.org/10.26668/businessreview/2023.v8i9.1611Keywords:
Client Satisfaction, Service Quality, Security, Transaction Cost, Trust, ConvenienceAbstract
Purpose: The prime intention of this study is to explore client satisfaction with branchless agent banking services during the COVID-19 Pandemic. The roles of service quality, security, transaction cost, trust, and convenience have been explored to assess the client satisfaction of agent banking in Bangladesh.
Theoretical framework: The research model used in this study is based on the theory of Oliver (1980). In the model, dependent variable (client satisfaction) is measured through the service quality, security, transaction cost, trust, and convenience. Oliver (1980) claims that the customer satisfaction model explains why feelings of satisfaction occur when customers assess how well actual products or services perform in comparison to their expectations.
Design/Methodology/Approach: The self-administered questionnaire was deployed for primary data collection purposes. A partial least square-structural equation model (PLS-SEM) analysis was performed on the 286 useable questionnaires that were returned from a total of 300 questionnaires in order to validate the model and assess the validity of the hypothesis.
Findings: The study's conclusions showed that factors including service quality, security, trust, and convenience have a big impact on how satisfied customers are. Transaction costs don't, however, significantly affect how satisfied customers are.
Research, Practical & Social implications: This study's findings will close the existing empirical gap by educating academics about the relationship between consumer happiness, service quality, security, transaction cost, trust, and convenience in the agent banking sector. Furthermore, it aids in their comprehension of theoretical and practical issues. Certainly, this research will serve as the basis for future research in Bangladesh in this field. The results of this investigation will have a wide range of significant ramifications for the sector.
Originality/Value: Agent banking is not a novel concept in Bangladesh, but to the best of our knowledge, there is no literature available that uses PLS-SEM to assess rural consumers' satisfaction. This essay is a wise attempt to close that gap. The research offers some useful practical implications for agent banks to identify appropriate ways to satisfy their consumers, despite some constraints.
Downloads
References
Achieng, B. M., & Ingari, B. K. (2015). Factors influencing the adoption of mobile banking in Kenya’s commercial banks: a case of Kenya commercial bank (KCB) Kilindini branch. International Journal of Scientific and Research Publications, 5(10), 1-14.
Ahmed, J.U., & Ahmed, A. (2018). Agrani Doer banking: Agent banking business in Bangladesh. Business Perspective and Research, 6(2), 154-164.
Ali, M. & Raza, S. A. (2015). Measurement of service quality perception and customer satisfaction in Islamic banks of Pakistan: Evidence from Modified SERVQUAL Model. Munich Personal RePEc Archive (MPRA) Paper, No. 64039.
Amin, M., Isa, Z., & Fontaine, R. (2013). Islamic banks: Contrasting the drivers of customer satisfaction on image, trust, and loyalty of Muslim and non-Muslim customers in Malaysia. International Journal of Bank Marketing, 31(2), 79-97.
Andala, R. P. B. (2019). The effect of security service quality operations and information management, reliability & trustworthiness on e-loyalty moderated by customer satisfaction on the online shopping website. International Journal of Supply Chain Management, 8(6), 586-594.
Armstrong, J. S., & Overton, T. S. (1977). Estimating non-response bias in mail surveys. Journal of Marketing Research, 14(3), 396-402.
Ashraf, M.A. (2022). Comprehending the intention to use branchless banking by rural people during the corona pandemic: evidence from Bangladesh. Journal of Financial Services Marketing, Published online 0n 09 Feb. https://doi.org/10.1057/s41264-021-00136-7
Awang, Z. (2012). Structural equation modeling using Amos graphic, PENERBIT PRESS, University Technology Mara.
Bangladesh Bank. (2020). Quarterly Report, Bangladesh Bank.
Bedi, M. (2010). An integrated framework for service quality, customer satisfaction and behavioural responses in Indian Banking industry: a comparison of public and private sector banks. Journal of Services Research, 10(1), 157-172.
Berry, L.L., Seiders, K., & Grewal, D. (2002). Understanding service convenience. Journal of Marketing, 66(3), 1-17.
Bilgihan, A., Kandampully, J., and Zhang, T. (2015). Towards a unified consumer experience in online shopping environments: Antecedents and outcomes. International Journal of Quality and Service Sciences, Vol. 8, 102–119 Doi: 10.1108/IJQSS-07-2015-0054.
Bizarrias, F., Cucato, J., Strehlau, V., Ferreira, M., & da Silva, J. (2019). Relationship and search for discounts, and their effects on loyalty and e-commerce, when mediated by satisfaction and trust. International Journal of Professional Business Review, 4(2), 51-69. https://doi.org/10.26668/businessreview/2019.v4i2.155 .
Black, H.G., Childers, C.Y. and Vincent, L.Y. (2014). Service characteristics’ impact on key service quality relationships: a meta-analysis. Journal of Services Marketing, 28(4), 276-291.
Bloemer, J., Brijs, T., Swinnen, G., & Vanhoof, K. (2002). Identifying latently dissatisfied
customers and measures for dissatisfaction management. International Journal of Bank
Marketing, 20(1), 27-37.
Bolton, R.N., & Myers, M.B. (2003). Price-based global market segmentation for services. Journal of Marketing, 67(3), 108-128.
Browne, R. H. (1995). On the use of a pilot sample for sample size determination. Statistics in Medicine, 14(17), 1933-1940.
Business Inspection (Oct, 2021). The rise of agent banking in Bangladesh. Retrieved from https://businessinspection.com.bd/rise-of-agent-banking-in-bangladesh/
Chang, K. C., Kuo, N. T., Hsu, C. L., and Cheng, Y. S. (2014). The impact of website quality and perceived trust on customer purchase intention in the hotel sector: website brand and perceived value as moderators. International Journal of Innovation Management Technology, 5, 255.
Cheston, Susy et al. (2016). The Business of Financial Inclusion: Insights from Banks in Emerging Markets. Institute of International Finance (IIF), Washington, D.C., USA.
Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Hilldale NJ: Routledge.
Cronin, J. J., Brady, M. K., & Hult, G.T. M. (2000). Assessing the effects of quality, value, and customer satisfaction on consumer behavioral intentions in service environments. Journal of Retailing, 76(2), 193-218.
Dabholkar, P. A., Thorpe, D. I., & Rentz, J. O. (1996). A measure of service quality for retail stores: Scale development and validation. Journal of the Academy of Marketing Science, 24, 3–16.doi: 10.5267/j.msl.2019.7.020.
Doney, P. M., & Cannon, J. P. (1997). An examination of the nature of trust in buyer–seller relationships. Journal of marketing, 61 (2), 35-51.
Feng, L., Hui, L., Meiqian, H. Kangle, C., & Mehdi, D. (2021). Customer satisfaction with bank services: The role of cloud services, security, e-learning and service quality. Technology in Society, 64. https://doi.org/10.1016/j.techsoc 2020.101489.
File, K. M., and Prince, R. A. (1992). Positive word of mouth: Customer Satisfaction and buyer behaviour. International Journal of Bank Marketing, 10(1), 25-29.
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50. Doi:10.2307/3151312.
Fornell, C., Johnson, M., Anderson, E.W., Cha, J. and Everitt Bryant, B. (1996). The American
customer satisfaction index: nature, purpose, and findings. Journal of Marketing, 60, 7-18.
Ghosh, S. K. & Barua, Z. (2014). Bangladesh mobile banking service and customer satisfaction and loyalty. Management and Marketing, Challenges for the knowledge Society, 9(3), 331- 346.
Gold, A. H., Malhotra, A., and Segars, A. H. (2001). Knowledge management: an organizational capabilities perspective. Journal of Management Information Systems, 18(1), 185-214.
Gounaris, S.P. (2005). Trust and commitment influences on customer retention: Insights from business-to-business services. Journal of Business Research, 58, 126-140.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling. California: Thousand Oaks: Sage.
Hamzah, N., Ishak, N. M., & Nor, N. I. M. (2015). Customer satisfactions on Islamic banking system. Journal of Economics, Business and Management, 3(1), 140-144.
Hasan, Z. (2019). The effects of agent banking on the profitability of commercial banks in Bangladesh (Doctoral dissertation, Brac University).
Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial lest squares path modeling in international marketing. Advances in International Marketing (AIM), 20 , 277-320.
Hidayat, R., Akhmad, S., & Machmud. (2015). Effects of service quality, customer trust and customer religious commitment on customer satisfaction and loyalty of Islamic banks in east Java. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah. Journal of Islamic Economics, 7(2), 151-164.
Host, V., & Knie-Andersen, M. (2004). Modeling customer satisfaction in mortgage credit companies. The International Journal of Bank Marketing, 22(1), 26-42.
Ilias, S. and Panagiotis, T. (2010). Investigating the impact of service quality and customer satisfaction on customer loyalty in mobile telephony in Greece. The TQM Journal, 22(3), 330-343.
Jamal, A. & Naser, K. (2002), Customer satisfaction and retail banking: an assessment of some
of the key antecedents of customer satisfaction in retail banking. International Journal of Bank Marketing, 20(4), 146-160.
Joshi VK., & Joshi VD. (2019). Technology-Based Banking Services – An Empirical
Analysis of Customer Service Perception on Selected Public Sector Banks in India. Research Journal of Social Sciences, 10(5), 62-72.
Kabir, M. R. (2013). Factors influencing the usage of mobile banking incident from a developing country. World Review of Business Research, 3(3), 96-114.
Kassim, N., and Abdullah, N. A. (2010). The effect of perceived service quality dimensions on customer satisfaction, trust, and loyalty in e-commerce settings: a cross cultural analysis. Asia Pacific Journal of Marketing and Logistics, 22(3), 351-371.
Kaura, V., Durga Prasad, C.S. and Sharma, S. (2015). Service quality, service convenience, price and fairness, customer loyalty, and the mediating role of customer satisfaction. International Journal of Bank Marketing, 33(4), 404-422.
Kazi, W. I. (2021). The Rise of Agent Banking in Bangladesh. Business Inspection, Oct 17.
Khadim, N. & Islam, M. K. (2022). A review of literature on the evaluation of customer satisfaction patterns in mobile banking services. International Journal of Professional Business Review, 7(3), 1-12. Doi:https://doi.org/10.26668/businessreview/2022.v7i3.0534.
Khalid, S., Mahmood, B., Abbas, M., & Hussain, S. (2011). Customer satisfaction with service
quality in conventional banking in Pakistan: The case of Faisalabad. International Journal of Marketing Studies, 3(4), 165.
Khan, A. G., Lima, R. P., Mahmud, M. S. (2018). Understanding the service quality and customer satisfaction of mobile banking in Bangladesh: Using a structural equation model. Global Business Review, 1-16. Doi: 10.1177/0972150918795551.
Kline, R. B. (2011). Principles and practice of structural equation modeling, 3rd edition. The Guilford Press. New York.
Kumar, M., Fong, T.K., & Manshor, A.T. (2009). Determining the relative importance of critical factors in delivering service quality of banks: An application of dominance analysis in SERVQUAL model. Managing Service Quality, 19(2), 211-228.
Kuo, T.N., Chang, K.C., Cheng, Y.S. and Lai, C.H. (2011). The impact of service quality, customer satisfaction and loyalty in the restaurant industry: moderating effect of perceived value quality and reliability (icqr). 2011 IEEE International Conference, 14-17, September, 551-555.
Kurt, M., Andreas, W. & Renzl, B. (2006). Dimensions of price satisfaction: a study in the retail banking industry. International Journal of Bank Management, 24(4), 216-231. Doi:10.1108/02652320610671324.
Ladeira, W. J., Santini, F. D. O., Sampaio, C. H., Perin, M. G., & Araújo, C. F. A (2016). Meta-
analysis of satisfaction in the banking sector. International Journal of Bank Marketing, 34(6), 798-820.
Lee, M. K., & Turban, E. (2001). A trust model for consumer internet shopping. International., Journal of electronic commerce, 6 (1), 75-91.
Levesque, T., & McDougall, G.H.G. (1996). Determinants of customer satisfaction in retail banking. International Journal of Bank Marketing, 14(7), 12-20.
Lyman, T., Ivatury, G., & Stefan, S. (2006). Use of Agents in Branchless Banking for the Poor: Rewards, Risks, and Regulation. USA: CGAP.
Mahmood, R. and Sarker, S (2015). Inclusive Growth through Branchless Banking: A Review of Agent Banking and its Impact. Journal of Economics and Sustainable Development, 6(23), 2222-2855.
Morgan, R.M., and Hunt, S.D. (1994). The commitment-trust theory of relationship marketing.
Journal of Marketing, 58(3), 20-38.
Naeem, H., and Saif, I. (2009). Service Quality and its impact on Customer Satisfaction: An empirical evidence from the Pakistani banking sector. The International Business and Economics Research Journal, 8(12), 99.
Oliver, R. (1980). A cognitive model of the Antecedents and consequences of satisfaction decisions. Journal of Marketing Research, 17(4), 460.
Özkan, P., Süer, S., Keser, İ.K. & Kocakoç, İ.D. (2019). The effect of service quality and
customer satisfaction on customer loyalty: The mediation of perceived value of services,
corporate image, and corporate reputation, International Journal of Bank Marketing, 38(2), 384-405.
Parasuraman, A., Berry, L. L., and Zeithaml, V. A. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12-40.
Parvin, T. & Sarker, K. B. (2021). The evolution and prospect of agent banking in Bangladesh: A study based on Bangladesh banking sectors. Journal of Business Management and Economic Research, 5(4), 121-134. doi:/10-29226/TR1001.2021.271
Patrick, A.S. (2002). Building trustworthy software agents. IEEE Internet Computing, 6(6), 46-53.
Ringle, C., Wende, S. & Will, A. (2005). Smart PLS 2.0 (Beta), Hamburg, available at: www.smartpls.de
Roy, S. K., Lassar, W. M., & Shekhar, V. (2016). Convenience and satisfaction: mediation of
fairness and quality. The Service Industries Journal, 36(5-6), 239-260.Sobel, M. E. (1982). Asymptotic confidence intervals for indirect effects in structural equation models. Sociological Methodology, 13, 290-312.
Singh, J., & Sirdeshmukh, D. (2000). Agency and trust mechanisms in customer satisfaction and loyalty judgments. Journal of the Academy of Marketing Science. 28(1), 150-167.
Solomon, M. (1996). Consumer behavior, (2nd ed., p. 346). Boston: Allyn and Bacon.
Spreng, R.A., MacKenzie, S.B. and Olshavsky, R.W. (1996).A reexamination of the determinants of consumer satisfaction. Journal of Marketing, 60(3), 15-32.
Thaker, H. M. T., Khaliq, A., & Thaker, M. A. M. T. (2016). Evaluating the service quality of Malaysian Islamic banks: An importance-performance analysis approach. International Journal of Business and Information, 11(3), 341-364.
Thuy, N. P, (2011). Using service convenience to reduce perceived cost. Marketing Intelligence & Planning, 29(5): 473-487.
Tindi, P. O., & Bogonko, J.P. (2017). Effects of agent banking on customer satisfaction in the banking industry in Kenya. International Academic Journal of Economics and Finance, 2(3), 141-160.
Uddin, Main, & Sultana, Afrin (2019). Factors shaping the prospects of agent banking in Bangladesh. Journal of Business Studies, 30(2), 19-34.
Varki, S. and Colgate, M. (2001). The role of price perceptions in an integrated model of behavioral intentions. Journal of Service Research, 3(2), 232-40.
Voss, G.B., Parasuraman, A. and Grewal, D. (1998). The roles of price, performance, and
expectations in determining satisfaction in service exchanges. Journal of Marketing, 62(4), 46-61.
Wang, Y., So, K. K. F., & Sparks, B. A. (2017). Technology readiness and customer satisfaction with travel technologies: A cross-country investigation. Journal of Travel Research, 56(5), 563-577.
Yap, B.W., Ramayah, T., and Shahidan, W.N.W. (2012). Satisfaction and trust on customer
loyalty: a PLS approach. Business Strategy Series, 13(4), 154–167.
Yee, R. Yeung, A., and Cheng, T. (2010). An empirical study of employee loyalty, service quality and firm performance in the service industry. International Journal of Production Economics, 124(1), 109.
Yusup, K. D. (2019). Analyzing the effect of service quality on customer satisfaction of Islamic banking in West Java Province, Indonesia. Management Science Letters, 9, 2347-2356.
Zeithaml, V. A., & Bitner, M. J. (2012). Service marketing (International Ed.). New York: McGraw Hill Inc.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Abu Zafar Md Rashed Osman, Mohammad Ali Ashraf, Shah Md Safiul Hoque
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Authors who publish in this journal agree to the following terms: the author(s) authorize(s) the publication of the text in the journal;
The author(s) ensure(s) that the contribution is original and unpublished and that it is not in the process of evaluation by another journal;
The journal is not responsible for the views, ideas and concepts presented in articles, and these are the sole responsibility of the author(s);
The publishers reserve the right to make textual adjustments and adapt texts to meet with publication standards.
Authors retain copyright and grant the journal the right to first publication, with the work simultaneously licensed under the Creative Commons Atribuição NãoComercial 4.0 (http://creativecommons.org/licenses/by-nc/4.0/), which allows the work to be shared with recognized authorship and initial publication in this journal.
Authors are allowed to assume additional contracts separately, for non-exclusive distribution of the version of the work published in this journal (e.g. publish in institutional repository or as a book chapter), with recognition of authorship and initial publication in this journal.
Authors are allowed and are encouraged to publish and distribute their work online (e.g. in institutional repositories or on a personal web page) at any point before or during the editorial process, as this can generate positive effects, as well as increase the impact and citations of the published work (see the effect of Free Access) at http://opcit.eprints.org/oacitation-biblio.html
