What Keeps the E-Banking Customer Loyal? A Multigroup Analysis of the Moderating Role of Consumer Characteristics on E-Loyalty in the Financial Service Industry.

14 Pages Posted: 28 Mar 2015

See all articles by Arne Floh

Arne Floh

Vienna University of Economics and Business

Horst Treiblmaier

MODUL University Vienna

Date Written: March 26, 2006

Abstract

At first sight the Internet is the ideal medium for carrying out banking activities due to its cost savings potential and speed of information transmission. From a technological and cost-driven standpoint it may seem quite logical for banks to shift as many banking activities online as possible. At the same time, the question of how to foster customer loyalty arises when the relationship between the bank and the user becomes a virtual one.

This paper investigates the importance of antecedents of online loyalty such as trust, quality of the Web site, quality of the service and overall satisfaction. Rather than investigating which factors drive customers to use online banking instead of offline banking, this paper addresses the problem of how to keep customers online and loyal to a specific supplier. A survey among more than 2,000 customers of an Austrian online bank was conducted and a structural equation modeling approach was used to gain important insights into how customer retention in the online banking business can be ensured. Satisfaction and trust were identified as important antecedents of loyalty. Additionally, the moderating role of consumer characteristics (gender, age, involvement, perceived risk and technophobia) was supported by the data.

Keywords: Loyalty, E-Banking, Structural Equation Modeling, Multigroup Analysis

JEL Classification: M30

Suggested Citation

Floh, Arne and Treiblmaier, Horst, What Keeps the E-Banking Customer Loyal? A Multigroup Analysis of the Moderating Role of Consumer Characteristics on E-Loyalty in the Financial Service Industry. (March 26, 2006). Available at SSRN: https://ssrn.com/abstract=2585491 or http://dx.doi.org/10.2139/ssrn.2585491

Arne Floh

Vienna University of Economics and Business ( email )

Welthandelsplatz 1
Vienna, Wien 1020
Austria

Horst Treiblmaier (Contact Author)

MODUL University Vienna ( email )

Am Kahlenberg 1
Vienna, 1190
Austria

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