Online banking service quality and customer satisfaction a case study of Barclays bank Kenya limited

Abstract

This project study evaluated customer service with online banking service quality in Barclays Bank Kenya Limited. The conceptual framework adopted for conceptualizing the online banking dimensions for which customer satisfaction may be evaluated was the online banking service quality dimensions identified by Parasuraman et al (1991). Methodologically the study was a case study of the bank that involved the use of a structured questionnaire to collect primary data from the internal customers (staff). The questionnaires yielded an 86% response rate. The data was analysed using principal Component analysis (PCA) and Statistical SPSS (version 22.0.0.0) to eventually give tables and graphs for analysis of the study During the analysis, the initial conceptual framework was modified and a model was created with four quality dimensions (service performance, website characteristics, communication and efficiency) with 17 items therein. The study found that satisfaction levels were high with the dimensions, service performance and efficiency which showed that they were satisfied with aspects such as transaction speed, accuracy and privacy of customer information. It was found that the satisfaction levels were low with the dimensions of website characteristics and communication which means that they were not satisfied with aspects such as ease of use of the website, easiness to reach the bank and aesthetics of the site. The study gave recommendations for practioners to have amendments or changes to ensure the dimensions of website characteristics and communication were improved to ensure higher levels of customer satisfaction as the website is the face of the bank in this case where face to face interaction has been negated from the process. The study also suggested ensuring and maintaining the dimensions of service performance and efficiency through processed such as periodic assessment to ensure satisfaction levels do not drop. Since the study has looked at one organization in one sector, the study has given suggestions that the same study can be mapped onto research in other organizations in different sectors to evaluate online services. A more detailed model based on the one used in the study can also be created for study. The study also suggests that as the study only looked at customer satisfaction in relation to the service quality dimension, research can be carried out to find out the correlation between the dimensions themselves.