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).