The proliferation of and rapid advances in technology based systems, especially those related to the internet, are leading to fundamental changes in how companies interact with customers (parasuraman and Zinkhan, 2002; Bauer et al; 2005). This trend is well established in the service industry, where service providers are increasingly urged to invest in technology to better secure their future in the electronic age (Zhang and Prybutok, 2005; Bauer et al; 2005).
       Today’s winners are those who overcome consumer cynicism by exceeding expectation and going beyond the point of encounter. These firms are successful because they have invested for the long term through recognizing that service fulfillment not only promotes growth of their customer base but retains customer loyalty (lake and Hickey, 2002).
            The challenging business environment in the financial service market has also resulted in more pressure on banks to develop and utilize alternative delivery channels, with a view to attracting more customers, improving customer’s perceptions, and encouraging loyalty (Bauer et al; 2005; Lee and Lin, 2005, parasuraman et al;). Among the more recent delivery channels introduced is electronic banking. In its simplest form, electronic banking means the provision of information about the bank and its products via a page on the internet.
            Davis et al; (1989) however, defines the term as the provision of information and or services by a bank to its customers via computer, telephone or television. A more developed service, in Daniel’s (1999) view, is one that provides the customers with the opportunity to gain access to their accounts, execute transactions or buy products online or via other electronic means such as TV, telephone or Automated Teller Machines (ATM).
            The installation of customer friendly technology (such as menu driven automated teller machines, telephone and internet banking services) as a means of delivering traditional banking services has become common in recent years as a way of maintaining customer loyalty and increasing market share.
            Traditional brick and mortar banks are using technology to meet the competitive challenge posed by online banks, as well as a method of reducing the cost of providing services that were once delivered exclusively by bank personnel (Joseph et al; 2003). Managers in virtually all industries understand that providing quality customer service is a key strategic component in firm profitability. The importance of service delivery and its impact on improving satisfaction and retention of customers, improving sales and market share, and improving corporate image cannot be overstated (Lewis et al; 1994).
            As with most other service providers, banks have moved quickly to invest in technology as a way of controlling costs, attracting new customers, and meeting with convenience and technical innovation expectations of their existing customers (Pun et al; 2002).
            Numerous model have been developed to measure customer perceptions of service quality. Most of these mode is utilized face-to-face interaction between customers and the employees of service providers to conceptualize service quality measurement models.
            However, developments in information and communications technology have provided a platform by which companies can design, develop and deliver services that can perceived by customers as superior (Srjadjaja et al; 2003). There are several competitive advantages associated with the adoption of technology in service organizations some of which include the creation of entry barriers, enhancement of productivity, and increase of revenue generation from new services (Fitzsimmons & Fitzsimmons 1997). Service quality is one of the main factors that determines the success or failure of electronic commerce (Santos 2003).
       Automated service quality has tended to lag behind because practitioners have focused mainly on issues of usability and measurement of use, with little or no consideration to the issues of service quality (Buckley 2003). It has been proposed that customer perceptions and preferences of service quality have a significant impact on a bank’s success (Mouawad & Kleiner 1996).
            Recently, technology has had a remarkable influence on the growth of service delivery options (Dabhoikar & Bagozzi 2002) and a profound effect on service marketing (Bitner et al; 2002).
            In order to remain competitive, banks are increasing their technology based service options (Fitzsimmons & Fitzsimmons 1997). More and more banks have adopted technology to deliver their services and this has resulted in: reduced costs, the creation of value added services for customers (Zhu et al; 2002), the facilitation of their employee’s jobs and ultimately, the provision of self – service options for customers (Dabholkar & Bagozzi 2002).
            In today’s intensely competitive economy, providing excellent customer service plays a vital role in a company’s success and failure (Mouawad & Kleiner 1996). An increasing number of banks are using technology to deliver their regular service to customer.
            Investigations of quality issues of bank’s automated services are necessary because of their potential influence on: attractiveness, customer retention, positive word-of-mouth, and maximizing competitive advantages (Santo 2003). To embrace this new technology-oriented context, it is necessary for banks to realize how quality issues of automated services distinguish their customer services from others. This research will assist bank administrators to ascertain a better understanding of customer perceptions of automated services now integrated into the bank’s product offering.
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