Customer Loyalty in Virtual Environments:
An Empirical Study in e-Bank
Yu Chao*, Gin-Yuan
and Yung-Ching Ho^
Department of Management Science, National Chiao Tung University, 1001 Ta Hsueh Road, Hsinchu City,
Taiwan 300, R.O.C.
*Department of Business Administration, Chung Hua University, 707, Sec. 2, Wu Fu Road, Hsinchu City, Taiwan
'Department of International Business, Ming Hsin University of Science and Technology, 1, Hsin Hsin Road, Hsin
Feng, Hsinchu, Taiwan 304, R.O.C.
"^Department of Business Administration, National Chung Cheng University, 168 University Road, Ming-Hsiung,
Chia-Yi, Taiwan, R.O.C.
Abstract. The advent of e-commerce has increased the importance of consumer fmancing operations. Internet banking helps
banks to develop relationship marketing, thus improve customer loyalty. This study proposes a research framework to examine
the relationships among e-service quality, customer satisfaction, customer trust and e-loyalty in e-bank in Taiwan. Data are
collected through a survey using a structured questionnaire. The 442 valid respondents who have experience with e-bank are
analyzed by partial least squares structural equation modeling (PLS-SEM) method. The managerial implication is e-bank must
focus on e-service quality to increase customer satisfaction and trust for obtaining the e-loyalty.
Keywords: e-Service Quality, Customer Satisfaction, Customer Trust, e-Loyalty, e-Bank
PACS: 89.65.-s, 89.65.Gh.
Since Taiwan joined the World Trade Organization (WTO), numerous foreign banks have set up branches in
Taiwan. And deregulation of financial institutions has increase competition in banking industry in Taiwan.
Traditional banks have faced the threat of declaring because of the trend towards free trade and institutions
incremental. Especially, information technology is accelerating the revolution in the banking industry. Internet
applications can provide customers with timely services. But Internet consumer loyalty is difficulty and costly [I],
and banking industry requires a quality service to assess customer satisfaction and trust. To establish good customer
relationships is important in the business environment. Many studies show that higher perceived web site quality and
customer service lead to higher profitability levels. The key of business survival and success is to build and maintain
strong customer relationships. To build customer satisfaction, trust and e-loyalty, e-bank must focus on e-service
quality. Moreover, the existing literature regarding Internet consumer behavior has not fully analyzed profits
generated by higher e-service quality in term of customer satisfaction, customer trust, and e-loyalty. This paper
focuses on examining the relationship among e-service quality, satisfaction, trust, and e-loyalty in e-bank.
In the next section of this paper, we discuss the literature related to e-service quality, customer satisfaction,