Emerging digital banking service quality dimensions and their impact on elderly customer satisfaction and engagement: a study in Sri Lankan context

Gunaratne, T

Abstract

This research is based on the impact of emerging digital banking service quality dimensions on elderly customer satisfaction and engagement in Sri Lankan context. Security and privacy, perceived usefulness, perceived ease of use, perceived personalization and web aesthetics have been identified as the emerging service qualities in this new age of digital banking. Research on emerging service quality dimensions has become very crucial to both academics and practitioners; however, very little scholarly research has directed service marketers as to how they can influence on elderly customer satisfaction and engagement. In recognition of these current gaps of knowledge, this thesis investigates three research gaps that are addressed through three research questions. First, the research explores how security and privacy, perceived usefulness, perceived ease of use, perceived personalization and web aesthetics influence the elderly customer satisfaction (RQ1). Second, the research investigates the influence of perceived personalization on elderly customer engagement (RQ2). Third, it investigates the impact of in-person engagement and digital engagement on elderly customer satisfaction (RQ3).
To address the three research questions, research in this thesis employed a theory building study, followed by a theory-testing study, using a mixed-method approach. Study one used convergent interview method to collect data from 30 elderly customers who are engaged with a digital banking service provider for more than 6 months. The study qualitatively explored the interviewees’ perceptions of the security and privacy, perceived usefulness, perceived ease of use, perceived personalization, web aesthetics, in-person engagement and digital engagement. Study two collected data from digital banking customers (above the age of 60) of two leading retail banks in Sri Lanka, resulting in a sample of n=275. The data was collected using a web-based survey that contained 28 items. The factors contained in the conceptual model were drawn from both the literature and the theory-building study. The measurement items were drawn from prior research and thematic findings. Five-point Likert scale was used to measure the items. Structural equation modelling (SEM) was then used to analyse the hypothesized relationships in the model. Four out of nine hypothesized relationships were supported by the results of this theory-testing study
The results of the study confirm that, all the five service quality dimensions identified (security and privacy, perceived usefulness, perceived ease of use, web aesthetics and perceived personalisation) are distinct constructs. The results also indicate that all five service quality dimensions have appropriate reliability and each dimension has a significant correlation with other dimensions and make a significant influence on digital banking habits of elderly customers on digital platform. Findings suggest that the perceived usefulness is the key driver of elderly customer satisfaction on digital banking, followed by in-person engagement, perceived personalization, security and privacy, perceived ease of use and web aesthetics respectively. It means that elderly customers are more satisfied and engaged if the digital banking service provider augment the value proposition of digital banking with a clear understanding of the special needs they have. In other words, elderly customers are willing to engage and learn more on digital banking and have a much better and fully fledged customer experience on digital platform.

Key words: Service quality dimensions, digital banking, perceived - personalization, engagement and usefulness, customer satisfaction, in-person and digital engagement.

Citation

Gunaratne, T. (2022). Emerging digital banking service quality dimensions and their impact on elderly customer satisfaction and engagement: a study in Sri Lankan context. (Thesis). University of Salford

• Thesis Type: Thesis
• Deposit Date: May 2, 2023
• Publicly Available Date: May 2, 2023
• Award Date: Apr 28, 2022