The Impact of E-Banking Service Quality on Customer Loyalty: Mediated by Customer Satisfaction

Abstract

This study investigates the impact of e-banking service quality on customer loyalty mediated by customer satisfaction in the East Coast Region, Malaysia. This study intended to address a critical gap in understanding the evolving dynamics of customer loyalty as well as satisfaction within the banking sector. Through a cross-sectional quantitative approach and random sampling of 182 online banking users in this area. The research employs partial least square structural equation modelling (PLS-SEM) to analyse the data. The results reveal a significant correlation between online banking service quality, customer satisfaction, and loyalty, with customer satisfaction identified as a mediating factor in this relationship. By applying the cognitive-motivation-relational (CMR) theory, the study not only contributes to theoretical frameworks but also offers practical insights for the banking industry. This research provides valuable implications for future strategies, improving service delivery and responsiveness to the evolving needs of customers. Thus, this study enhanced the overall understanding of online banking dynamics in rural settings and offering a foundation for continued advancements in the field.