Interrelationship Between E-satisfaction, E-trust and E-loyalty in the Banking Industry

Abstract

Purpose: Digital disruption has forced banks to reconsider their technological strategies in order to redefine customer relationships. Customer experience these days is known as competitive differentiator. Industries dealing in E-services have realized that customer-centricity approaches are critical for market survival. E-satisfaction, E-trust, and E-loyalty are identified as the most significant behavioral outcomes related to E-services in the literature, however, there is a lack of clarity in understanding the relationship between them in the context of the banking industry. To fill this existing gap the study aims to examine the direct relationship between E-satisfaction and E-loyalty and the indirect relationship between E-satisfaction and E-loyalty mediated by E-trust in the Indian banking industry.

Design/Methodology/Approach: The study is quantitative in nature, based on the analysis of primary data collected from 400 respondents. The sample for the study is taken from the E-services users of public and private sector banks of Delhi/NCR. Data is analysed using AMOS based Structural Equation Modeling (SEM), and mediation analysis is performed using the bootstrapping method.

Findings: The findings of the study reveal that E-satisfaction has a direct as well as indirect impact via E-trust on E-loyalty, further, E-trust is found to partially mediate the relationship between E-satisfaction and E-loyalty.

Originality/Value: The exploration of the interrelation between E-satisfaction, E-trust and E-loyalty within the Indian banking industry is critical due to the evolving landscape of the banking industry and its profound implications on customers’ behavior. The study results in providing a comprehensive model to examine the relationship between E-satisfaction, E-trust and E-loyalty in the banking E-services context. The findings of the study can be used by bank managers, practitioners, and academicians to develop E-satisfaction, E-trust and E-loyalty related services and strategies in E-banking.

Paper Type: Empirical Research Paper