Investigating factors affecting customer loyalty in using electronic banking

Academic Thesis for Master's Degree

Field: Business Management, Orientation: International Business

Abstract

Previously and even until the end of the 20th century, ensuring customer satisfaction and loyalty was more of a slogan. Today, many efforts are made to improve quality management tools and expand the culture of customer orientation by researchers, experts and managers of the organization. This shows that loyalty is the most important indicator to determine. The success of organizations and the improvement of profitability are considered. Therefore, this research has identified and ranked the factors affecting the electronic loyalty of Parsian Bank customers in Rasht. Factors affecting customer loyalty in the model of this research include: reputation, service quality, received value, trust and habit. This research is descriptive-survey and practical in terms of purpose. The method of collecting information has been carried out in two ways: library (studying relevant documents and sources) and field using a standard questionnaire (opinion from customers to Parsian Bank branches in Rasht). The size of the statistical population of this research includes 40,000 customers (account holders) of Parsian Bank in Rasht city, out of which 400 customers (account holders) were selected. Because the size of the statistical population is unlimited, Morgan's table and random sampling method were used to select the sample size. The research results show that there is a positive and meaningful relationship between customer loyalty and variables including: reputation, service quality, received value, trust and habit. Among these factors, service quality has the greatest effect on customer loyalty.

Key words: electronic banking, customer loyalty, websites, reputation.

Introduction:

In today's business world, which is accompanied by the rapid development of science and technology, there have been many changes in various interactions and processes of organizations. Therefore, in the prevailing conditions, only organizations will remain in the field of competition that will welcome these changes and keep pace with them with a suitable vision and effective strategy[1]. Also, due to the fact that the customer[2] or client has a special priority as the reason for the existence and continued life of an organization. Today, organizations' perception of customers has changed. In the past, the customer was forced to use the goods or services provided, but now it is the customer who determines the type and quality of the goods and services. In fact, organizations have realized that for their survival and profit, they must adopt a customer-oriented strategy and improve service quality. Therefore, customer loyalty is the key to business success. With the increase in customer loyalty, the share of banks in attracting resources and economic profitability increases. As a result, banks can collect long-term resources for themselves by planning and adopting a suitable strategy to make customers loyal and increase their loyalty rate. As a result, organizations and service companies, especially banks, in order to be able to continue to exist, must pay much attention to the demands, needs and expectations of customers and strengthen their position in the world of economic competition by providing appropriate services that satisfy customers (Venos and Safaiyan, 2012, p. 5).

Therefore, in this research, the researcher tries to create a clear picture of the state of electronic banking and customer service and its relationship with customer loyalty and issues such as service quality, value Received, to map the trust, credibility and habit of loyal customers of Bank Parsian's electronic banking in Rasht city level and to study and investigate the effective factors in the electronic banking process of Bank Parsian in order to help the managers of this organization in achieving the goals of Bank Parsian by providing a clear view of the current situation and a perspective of the desired situation. And they are considered a product that not only has high security, but also has a dominant and decisive role in relation to the rest of the elements (Del Afrooz and Karami, 2010).

In such an era, success is only for those societies and organizations that understand the ruling paradigm well and find solutions to live in it, according to the conditions and requirements. Therefore, revising definitions, strategies and solutions is an inevitable necessity for organizations.. Most of the definitions, pillars, strategies and concepts that currently exist regarding the marketing of banking services correspond to the economy of the industrial age, and their revision is one of the necessities of the banking system, at least for the following two main reasons:

The introduction of a variable called information technology, which will naturally transform the relationships between various variables in the field of banking services and marketing.

The emergence of a new generation of customers who have adjusted their economic behavior based on new technologies. and technologies that are increasing in scope and dimensions every day (Jovindeh et al., 2013).

The global development of the Internet has led to the creation of e-commerce and many industries have been affected by e-commerce, but nowhere is the presence of e-commerce more prominent than in banking and financial services (Kerimi et al., 2013). has created a new form of banking called electronic banking (Divandari et al., 2013).

Electronic banking is an emerging type of banking industry that provides banking services using electronic environments, and with the use of electronic payment systems, you can transfer monetary and credit resources electronically without the need for physical movement (Mirovisi and Akbarpour, 2014).

Electronic banking includes all channels. which customers use to access their accounts and transfer money between accounts or pay their bills. These channels include the Internet, mobile phones, telephones, digital TV and ATMs (Javadin and Yazdani, 2014).

In electronic banking, the speed and accuracy of the process increases. So that people can do their banking affairs in the least possible time and at any place (Meshkini et al., 2013).

Nowadays, the banking industry is not only limited to providing services behind the counter, but its scope of activity has expanded to the level of activities of multinational companies (Gilaninia and Moussoyan, 2014). It also has not yet been able to adapt to it. In the meantime, banks have been able to experience a new generation of customers called electronic customers by removing the time and place constraints from banking services and with the help of the Internet platform, to increase the approach of exchanges from online to online by creating electronic banking (Jovindeh et al., 2013).

In today's competitive world, providing high quality services is a necessity for service organizations, especially banks. The need to understand and improve service quality considering the benefits of providing high quality services such as customer retention, creating satisfaction, customer loyalty and so on. It has been taken into consideration for the organization (Shahrodi et al., 2019).

From the point of view of electronic banking in this sector, what is more important for the owners of banks or their shareholders is the loyalty of customers at all levels, especially customers with credit to the respective bank, which has become the subject of competition between banks. In many banks, due to the lack of information system and network infrastructure, the success of creating loyal customers in recent years and gaining their trust in the respective bank has been accompanied by a gradual failure. Loyalty is an important factor in the success of the organization and has a positive effect on the profit of the organization. In the term, customer loyalty is said to be a state where the customer is at a higher level than satisfaction, has constant purchases and does not pay attention to competitors, and praises the organization to others (Alizadeh, 2011).

Therefore, the profitability of banks and Parsian Bank is in attracting a greater share of customers and especially their loyalty to the bank, and hence the factors affecting electronic loyalty and the importance of each of these factors with the aim of achieving profit and a greater share of the market and survival in The competitive market has been examined and an attempt is made to answer the following questions:

What factors are effective on the loyalty of Parsian Bank customers in the electronic environment?

What is the effect of each of the effective factors on electronic loyalty?

The necessity and importance of the research:

After the end of the eight-year imposed war, the problems and economic problems plaguing the country's economic system, especially in the traditional banking system of Iran, became apparent.