CONCEPTUALIZATION OF AUTOMATED SERVICE QUALITY IN BANKS

After reviewing the literature intensively, it is observed that there currently exist no generally accepted model automated service quality. There have been many studies identifying the key service quality factors in the traditional banking environment, where the interaction between employees and customers is the main communication channel (Jun & Cai 2001). However, there are a few studies that have investigated automated service quality attributes in banking (Szymanski & Hise 2000, Meuter et al; 2000, Joseph & Stone 2003).
As such there is a need for further empirical investigation into the most pertinent factors to be used when measuring automated service quality in the banking sector. The automated service quality model presented this paper is designed to include all the possible factors that may shape customer perceptions of automated service quality. Dabholkar (Cited in Joseph & Stone 2003) argued that the categorization of technology-based service delivery options may be applied across a spectrum of industries that utilize technology in delivering their service to the customer.
            The first classification in this categorization is based on who uses technology to deliver what service. Joseph and stone (2003) provide the following example to illustrate that point that in person-to-person deliveries, employees use technology to service individual accounts. Consumer technology, such as the ATM. The second categorization is based on the location, where the service has to be delivered. For example, at the firm’s physical surroundings, homes or office using PC. Computers
            The final categorization involves the ability to identify the various levels of contact the customer will have during the total period of service delivery either directly (face-to-face) or indirectly (such as in the case of telephone banking).
            In relation to banking, it can be identified that the service delivery components of ATM, internet banking and telephone banking are representative for the three categories of technology based service discussed. Furthermore, a number of marketing scholars identify these three delivery channels as the principal automated delivery channels for retail banking (Radecki et al; 1997, Joseph et al; 1999, Joseph & Stone 2003).
            Automated channels have many different names in the literature such as innovative distribution channels, online banking or technology intensive delivery system (Wong 1998, Fiot to et al; 1997, Daniel 1999). By definition, automated channels refer to methods of delivering service products using electronic media such as the telephone, internet and ATM (Hway-Boon& Yu 2003). Telephone banking provides service such as account balances, instruction to issue bank cheques, account payments. While ATM, the most frequently used electronic distribution channel, allows customers to perform their main banking transactions, such as deposits and withdrawals, 24 hours a day (Davies et al; 1996). Furthermore internet banking allows customers to check account balances, conduct credit cards payments/transfers, transfer funds and account payments (Jun & Cai 2001). The incredible growth of the internet is changing the way corporations conduct business with customers and it allows banks, as with ATM to offer financial services without a need for employee-consumer interaction.
            In the banking sector, customers tend to use to use the different service delivery channels in a complementary way. Consequently, developing a relationship with the customer can be achieved from any one these media and more likely, a combination of them (Ramsay& smith 1999, Patricio et al. 2003, long & Colgate 2003.) customer evaluation of automated service options and their intention to use a particular option are directly affected by their perception toward the attributes associated with that option (Dabholkar 1996). That is every different channel has its own attributes which differ from
the others, so it is important to measure the quality of each channel separately and not aggregate the channels to glean a more accurate picture of customer perceptions of automated service quality. The quality of every automated delivery channel will be important to form the customer’s overall perception of automated service quality and each delivery channel has been considered as a factor in the proposed automated service quality model.

ADDITIONAL DETERMINANTS OF AUTOMATED SERVICE QUALITY
            Price is essential factor in determining customer perception of automated service quality (surjadjaja et al 2003; lqbal et al. 2003). Form a customer perceptive, price is the most important motivation for engaging in online purchases and the most critical comparison element (Srjadjaja et al; 2003).
            Furthermore, online consumers are more prices sensitive than offline consumers (Igbal et al; 2003). Pricing problems associated with perceptions of unfairness and non-competitiveness, for example fee charges, often contribute to consumer decisions to switch banks (Keavenecy 1995, Colgate & Hedge 2001).
            Consequently, price has been incorporated as an additional factor that could influence the customer’s overall perception of automated service quality.
            Identifying an objective conceptualization of price to determine its role in the complex pricing environment of services is difficult (Chen et al; 1994). In the banking sector, a wide variety of products and services are offered and the prices of service products vary from one bank to another. As such, perceived price is used in this research to describe customer’s judgment about a service price (Chen et al; 1994).
            The core service (“what” is being offered) has features that shape customer perception and differentiate one service provider from another (Surechandar et al; 2002, Brogowicz et al; 1990, Rust & Oliver 1994, Schneider & Bowen 1995; Kotler 1984). The core service is considered as an important component automated service (Riel et al; 2001) as the product offerings and product information represent a set of element that could positively impact on automated service satisfaction levels (Szymanski & Hise 2000). Product innovation and knowledge development factors have a significant effect on the success of automated delivery channels (way-Boon & Yu 2003). Therefore, customer perceptions for the variety of products/services offered by a bank will be considered as another predominant factor that cloud influence overall customer perceptions of automated service quality. 

TECHNOLOGY IN THE BANKING INDUSTRY
            Technological developments have removed repetitive, time consuming tasks, reduced human error and extended access to banking related facilities. Technology also provides customer in formation that it would be much more expensive to provide on a person-to-person basis. Telephone banking facilities allow non-cash transactions to be carried out, which would have required a visit to a branch earlier (Prendergast and Marr, 1994).
            Similarly, internet banking allows customers to perform tasks at a time and in a place convenient to them. Dabholkar (1996) suggests that direct contact with such technology also gives customers feeling of greater control. Smith (1987) is of the opinion that technology was introduced in banks originally to reduce costs but that, by dividing front and back office operations, technology can be targeted to enhance different functions. The dilemma still remains, however, as  to how to maintain a satisfactory number of face-to-face interactions with the customers.
            Rogers (2004) identified five characteristics or attributes of innovations that affect the rate at which innovations are adopted (and ultimately their usage patterns): their relative advantage, compatibility, complexity, divisibility (trial ability), and communicability (absorbability). Additional characteristics were later added; perceived risk (Ostlund, 2005) and financial and social cost (Zeithaml, 2005).
            In the categorization of services in technology-based service delivery options, Dabholkar (1994) suggests there are a number of relevant classifications that will apply to industries employing technology-based service delivery. The classification analyses “who” delivers the service. That is, person to person, where the employee uses the technology or consumer to technology, such as the use of an ATM. The next categorization looks at where the service is delivered. Either on the service  firms’ sites themselves, at the customer’s home or office or at a “neutral” site such as an ATM located at an airport. The final categorization looks at the contact the customer has with the service operation, either direct or indirect such as in the case of telephone banking. 
            Dabholkar (1994) stipulates that there should be flexibility in the design of the technology to allow customers to make changes during the transaction and make available a customer service adviser if required, with “minimum waiting”. This also raises the design issue of sufficient menu options for ATM Telephone and Internet bankers. In most cases, the transaction occurs in a neutral location and the availability of an employee may not always be feasible since these facilities often operate 24 hours a day, seven day a week. May not always be feasible since these facilities often operate 24 hours a day, seven day a week.
            Continuous improvements in the information technology have enabled banks to provide their services in a more direct manner to adjust their products better to the c lienteles needs.
            Although banking has always been an information business, until now information technology was mainly used to automating to information business, until now information technology was mainly used to automate administrative process. The shift from automating to informating -using information and its flow to inform managers provides opportunities to track a customer’s behavior and respond at the right time. By making effective use of these opportunities, banks are able to transfer a great deal of transactions from branch offices to a call-centre (John, et al; 2005). Accessibility has been extended through technological developments as well as been extended through technological developments as well as the introduction new service delivery methods that allow consumers to do business with service firms form the home and office.
            Electronic banking is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick and mortar institution. The following terms all refer to one form or another of electronic banking: Personal computer (PC) banking, internet banking, virtual banking, online banking, home banking, remote electronic banking, and phone banking. PC banking and internet or online banking are the most frequently used designations. It should be noted, however, that the terms used to descried the various types of electronic banking are often used interchangeably (Dirk de Villiers, 2003)
            Internet banking is predicted to transform and revolutionaries traditional banking industry (Mols, 2000; Daniel, 2000; caring ton et al., 2002). Banking services are easily digitalized and authors mated and, thus, form an operational perspective, lend themselves to the internet (Elliot and Loebbecke, 2000, Daniel, 1998). The potential competitive advantage of the internet for banks lies in the areas of cost reduction and satisfaction of consumer needs.
            Automated teller machines (ATMS) are also known as electronic cash machine: an electronic machine that enables customers to withdraw paper money or carry out other banking transactions on insertion of an encoded plastic card (msn.encarta).
            Automated Teller machines (ATMs) are nothing new, but not all cardholders make full use of all the facilities that ATM after due to ignorance or technophobia, nay clients still opt for more cumbersome and costly methods of banking (Stanley et al.) 2000). Bank clients, who hate waiting in long queses at the bank prefer ATM banking. It offers the customer the convenience of being able to do most of their banking from a machine often situated outside the bank, so that they have access to their bank account 24 hours a day.
            Technology, an aspect of the design, means the process for transforming materials to finished products. In the public sector, the information constitutes the material and the public service as well as the product. More broadly stated, to include the types of work done in the most public agencies, technology refers to the programme and procedure designed to respond to situations and process cases to achieve the results specified in the mandate of the agency. It does not refer to machines and equipment only but to the programmes and performance routines of the agency (Gortner et al., 1989). Utilization of technology today, offers dramatic and enduring improvements in enhancing organizational performance (Daven Port, 1993; Hammer and Champy, 1993; Holzer and Callanhan, 1998; Morton, 1991).
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