Predicting Customer Loyalty in the Mobile Banking Setting

Abstract

This study uses a novel theoretical approach that combines two multidimensional service quality models that focus on customer satisfaction, perceived value, and customer loyalty as outcomes of service quality in the context of mobile banking. Additionally, the study assesses the potential moderating effects of switching costs between mobile banking service quality and customer loyalty. The study found a strong direct effect between service quality, perceived value, customer satisfaction, and loyalty. The moderating effect of switching costs was found to be inconsequential to customer loyalty. The study demonstrates that financial institutions should focus on building and maintaining functional, secure mobile banking applications to enhance customer loyalty and retention.

Assessing the Success of Mobile Banking in Saudi Arabia

“…In MB research, our findings are in line with recent studies' results (Bui et al, 2022;Poromatikul, et al, 2021), and provide additional insights about the direct impact of value perception on satisfaction, while this link has been indirect, via trust in the research of Berraies et al (2017).…”

“…Several authors have verified the direct impact in a traditional banking context (Omoregie et al, 2019) and mobile banking one (Poromatikul, et al, 2021). Consistent with these prior studies in the mobile banking environment (Bui et al, 2022;Poromatikul, et al, 2021), it is suggested that satisfaction is influenced by value. Accordingly, H10: In a mobile banking context, perceived value positively impacts consumer satisfaction.…”

“…The perceived value concept is examined not only in the traditional business environment but also in the electronic commerce environment (Bui et al, 2022). Zeithaml (1988, p. 14) presents perceived value as the "consumer's overall assessment of a utility of a product (or service) based on the perception of what is received and what is given."…”

Evaluating the Perceived Quality of Mobile Banking Applications in Croatia: An Empirical Study

“…Service quality denotes the degree to which interaction with a mobile banking application matches customer needs. High service quality of mobile banking applications results in customers' satisfaction which in turn leads to their loyalty [15]. It is, therefore, of great importance that mobile banking applications meet customers' expectations and needs.…”

“…Only two study participants have singled out the security of personal data as the strength of mobile banking applications. On the other hand, lack of relevant functionalities (15), security concerns (8), issues with responsiveness (7), difficulties in use (4), and various technical problems, including common updates (3), were recognized by clients of mobile banking applications as their biggest shortcomings.…”