THE RESEARCH TEAM

Group C

Ayman Mohamed Bedeir

Mohamed Ali Elwaya
Omar Mohamed Elsawy
Mohamed Eliwa
Ahmed Alshazli Dr: Tarek Ali
Mohamed Emad Al-Din
Contribution Form
THE IMPACT OF CUSTOMER SATISFACTION ON THE RELATIONSHIP BETWEEN
SERVICES QUALITY AND BANK ONLINE TRANSACTIONS DURING COVID-19
COMMERCIAL BANKS
A CASE STUDY BANK C AT DIFFERENT LEVELS OF AGE AND EDUCATION
 1. Introduction
1.1 research Background
1.2 phenomena definition and description
1.3 suggested reason/s and research GAP
1.4 problem statement
1. Introduction

• The non-governmental sector plays a vital role in supporting the economic

development of the country. This study attempts to assess the impact of the
quality of services on the level of customer satisfaction and their use of the
Internet in all their banking transactions. Service quality was determined by
studying its dimensions and conducting a full study through Bank C on the
impact of high service quality administratively and technically. The study
was chosen to study the administrative and technical dimensions of each
dimension separately and its impact on customer satisfaction and to
measure their satisfaction and its reflection on their use of the Internet in
their banking transactions during the COVID-19 pandemic, taking into
account the differences between them in terms of educational level and age
group.
1.1 Research Background

• The main objective of the study is to reviews the research conducted about online banking, focusing
on the effect of the Covid-19 pandemic on using online banking services as a marketing channel. The
study used is the systematic literature review of previous studies, so that these studies included the
period before and after the Covid19 pandemic.

• From reviewing the online banking research, the study find that the Covid-19 pandemic had a positive
impact on the online banking services market, as the pandemic resulted in social distancing laws that
led to the resort to electronic services to conduct business including banking. In addition, this study
concluded that among the most important factors affecting the quality of online banking services.

• The recommendations we need more research about online banking services, focusing on the
limitations and the factors affecting throw services quality and its relationship on customer
satisfaction.
1.2 Phenomena Definition

• The Impact of COVID-19 on the banking sector and the growth usage of online banking, include the
intensifying use of digital channels and digital payments, the change of consumer behaviour,
relaxation of several regulatory and supervisory provisions, but also new challenges regarding
operational resilience and increase of low profit loans.

• The impact of online banking on business and consumer behaviour change is a topic of great
importance for companies and financial industry around the world not only to take actions on short-
term, but, even more important, to reconsider their strategy on medium and long term.

• At the end of the 4th quarter of 2020, during the meeting of the branch network manager for Bank C
with the work team We found a noticeable decrease in all direct banking transactions through
branches, along with increase in banking transactions via the Internet, with the spread of the
pandemic and the beginning of the closure in the Kingdom of Saudi Arabia. The branch network
manager decided to make a research team on how to deal with customers without the need to visit
the branch and not be affected.
1.2 Phenomena Definition

• THE IMPACT OF CUSTOMER SATISFACTION ON THE RELATIONSHIP BETWEEN SERVICES QUALITY

AND BANK ONLINE TRANSACTIONS DURING COVID-19 COMMERCIAL BANKS
A CASE STUDY BANK C AT DIFFERENT LEVELS OF AGE AND EDUCATION

10,000
Traditional Transactions Online Transactions
8,757 8,820
Bank Performance

9,000
8,000
7,000
6,000 5,141
5,000 3,947 3,956 4,224
3,807
4,000 3,289 3,019
2,664 2,815
3,000 1,932 2,297
2,000 1,621
1,000 21 32 41 76
0
Qtr4-2019 Qtr1-2020 Qtr2-2020 Qtr3-2020 Qtr4-2020 Qtr1-2021 Qtr2-2021 Qtr3-2021 Qtr4-2021

• The above graph usage of online banking transaction and the reduction of traditional usage 2019,2020 and 2021 in Saudi Arabia
• Ref. ( Saudi Central Bank Report 2020 - Bank C Operation Report Jan-2022 )
1.2 Phenomena Definition

• We started by researching and relying on more than one report issued by the Saudi Central
Bank and some banks with the largest customer base and communicating with their
managers to reach how to go to the flexibility and ease of using online banking in all
banking transactions to face the pandemic.

• This study analyses the online banking services literature and linked with the Covid-19
pandemic, thus, finding how Services quality deal with the current issue to cover customer’s
satisfaction and achieve bank targets and how to be still connected with bank customers
during total curfew.

• The selected criteria for this review based on reports of bank C were published from 2019 to
2022.
1.2.1 Phenomena Description

• The case study for this research will be as follows Bank C, which is a bank in the
Kingdom of Saudi Arabia. Bank C is one of the leading banks in the Kingdom. It
receives through its branches more than 1,000 customers daily. It is considered the
third largest commercial bank in the Kingdom. The Saudi Central Bank serves all
banks in the Kingdom and is considered a supervisory body for all of them. A study
will be conducted to change the customers’ methodology from going directly to the
branches to using the Internet in all their banking transactions and analysing the
quality of the service that was provided, which led to an increase in the customers’
tendency to use the Internet in their banking transactions.
1.3 Suggested Reasons:

We found that there are several reasons affecting this problem as following:

• Firstly, the quality of online services not covering all customer satisfaction.
• This will lead to slow workflow especially in customer’s satisfaction.
• Secondly, the wasted time of the customers caused by difficulty of using.
• In addition to the unprofessional online services quality.
• LCS, it takes time if customer have to receive it from the branch.
• On the other hand, some of the reasons could not be only from the customer only but also
the online services quality itself.
• The delay in transfer money especially FCY and external transfer because u have to wait
your turn in the branch.
• The slow workflow of the bank products and loans which make some customer get
disappointed because of other banks online services quality.
1.4 Problem Statement

How is attention to the quality of online banking services vital in determining the level of customer satisfaction?

It is the most effective quality of service measures to increase customer satisfaction and their use of the banking
Internet.

How did the Covid-19 crisis increase the importance of the quality of service via the Internet and turn customers
to end their banking transaction via the Internet?

What is the impact of the extent of customer satisfaction using the Internet in most of their banking transactions?

Research Objectives:

To describe: the current situation of the rate of internet banking usage in Bank C in particular and the Kingdom of
Saudi Arabia in general.
To explain: The effect of the quality of banking services on the Internet on customer satisfaction.
To explore: How customer satisfaction affects the use of the Internet in all their banking transactions?
 2.1 Variables Definitions

Independent Variable:
Providing the best quality of service where the quality of service is a decisive factor by all
specialists in the bank using the best techniques in banking transactions on the Internet and
the extent of its impact on customer satisfaction, We will measure the quality of services using
the seven well-known dimensions according to (the Saudi Central Bank 2021 report).

Intervening Variable:
Customer satisfaction (IIV) control compliance as a mediating variable that surfaces as a
function of the online banking services quality use and refers to policies and procedures used
to increase the online banking transactions usage.
 2.1 Variables Definitions

Dependent Variable:
Using online banking transactions (DV) Rate is the probability of using online banking rapidly
because of the consumer satisfaction.
It is typically used to measure the satisfaction of consumer of new services quality.

Moderating Variable:
Consumer education and age are moderating variable academic qualification, educational
qualification and non-educational has a moderating effect on customer satisfaction.
Age is a significantly related to perceived satisfaction.
Age affects the customer satisfaction level on using online banking transactions.
2.2 Literature Review

• Online services have become a need in our daily lives, especially after the outbreak of the Covid-19
pandemic, which imposed on society the laws of social distancing.

• This matter has imposed on all institutions of all kinds to work remotely, as are banks, banks that
used to provide online banking services have become obligated to provide these services to
conduct business under the laws of social distancing.

• Many studies have dealt with the subject of online banking services, as they have studied these
services and their impact on consumers, as well as the nature of consumers demand for these
services, studying the distribution channels of electronic banking services, and how they are
affected by consumer trends, and the factors affecting the quality of these services, and
determining Quality elements of the online banking services.
2.2 Literature Review

• Also, post Covid-19 pandemic studies have found that these services have been significantly affected by the
pandemic positively, which made the pandemic a marketing opportunity for online banking services.

• SERVQUAL model is one of the most underlying used tools to evaluate service quality

• SERVQUAL comprises a rundown of 10 measurements (reliability, responsiveness, competence, access,

courtesy, communication, credibility, security, understanding the customer and tangibility) to gauge service
quality. Later in 1988, these 10 dimensions were cut down to five (tangibility, reliability, responsiveness,
assurance, and empathy).

• According to Central Saudi Bank and Bank C (2019, 2020), five principal dimensions that customers use to
judge service quality include tangibility, reliability, responsiveness, assurance, and empathy as shown below
and we will talk about just 3 dimensions (tangibility, Responsiveness, and empathy ) beside 4 of the technical
dimensions (influence, innovation, knowledge and infrastructure )
 2.2.1 Online Banking Services and Quality

• A study by (Saudi Central bank 2020) aimed to identify the factors affecting the use of online
banking services in Saudi Arabia, through a field survey of the study population using a
questionnaire Bank C. The study found four factors affecting online banking services in Saudi
Arabia.
• The Bank provides the flexibility required for the user’s ease of access to the bank’s system
through its own online channels, how to deal with the system and the completion of all the
customer’s banking transactions with ease while providing the required privacy.
• Online banking can help Bank C gain a competitive advantage by lowering labour costs and
improving customer service; Enhance flexibility, improve access to information, and eliminate
most manual or paperwork.
 2.2.1 Online Banking Services and Quality

• The recommendation that Bank C needs to carry out more intensive marketing campaigns, which aimed to
increase customer’s awareness regarding to the online banking services.
• Further, banks could focus their efforts on Services quality issues and provide online services to customers,
Bank C needs to revaluate user interfaces of the online banking services to ensure online services quality by
customers.
• In Saudi Arabia, a study by (Saudi Central Bank & Bank C, 2020) identified the gaps in the quality of providing
online banking services, which are the technology used, dependence on the service, electronic knowledge,
and security.
• In the study of (Egypt Central Bank & Egypt Bank 2020), the factors affecting the Egyptian customer’s use of
online banking services were identified. The study consistent with the other studies. That’s, the technology
used, trust, customer affiliation, security, and privacy were the factors affecting them.
 2.2.2. Service quality and customer satisfaction

• Valued customers can be retained by improving the service quality of online banking in general, the bank has
been appraised positively by the customers, however, continuous development is suggested to maintain a cut-
throat edge
• However, and customer satisfaction varies according to the nature of service.
• To enhance customer satisfaction, the bank must maintain a strong relationship through better service.
• Service quality and e-banking adoption had a constructive and noteworthy association with the satisfaction of
customers. The key variables about 24 hours’ service, perfect and up-to date information, a quick process
influenced the customers’ satisfaction “Service quality” is an important construct of customer satisfaction
• To retain the customers, the bank must improve all the dimensions of the service quality Customers’
satisfaction depends upon the quality of services provided. Customers’ satisfaction leads to trustworthiness.
 2.2.2. Service quality and customer satisfaction

• Positive and significant association between the various constructs of service quality and satisfaction has been
studied. Among all the constructs, assurance construct played a vital role in influencing the customers’
satisfaction
• The customers expected higher from banks than what they received Substantiated the theory of literatures
with respect to the link between dimensions of service quality and satisfaction of customers.
• The dimensions such as (tangibility, Responsiveness, empathy, influence, innovation, knowledge and
infrastructure) is essential for the satisfaction of customers towards the services provided by the private
banking sector in Saudi Arabia.
• Positive association between customer satisfaction and their trustworthiness has been studied. The study
further disclosed about the negative association between customers’ satisfaction with intention of customers
to change banks.
 2.2.3. Customer Satisfaction and Online banking

• The electronic services provided by the bank have a positive and considerable impact
on customers’ satisfaction and also it had a significant impact on the profitability of
the bank Serviceability had a positive and significant effect on customer satisfaction to
accept online banking service
 Net Premotor Score

Net promoter score (NPS) is a widely used market research metric that typically takes the form of a
single survey question asking respondents to rate the likelihood that they would recommend a
company, product, or a service to a friend or colleague. The NPS is a proprietary instrument
developed by Fred Reichheld, who owns the registered NPS trademark in conjunction with Bain &
Company and Satmetrix.
Its popularity and broad use have been attributed to its simplicity and transparent methodology of
use.
2.3 Conceptual Framework

The relationship between all the mentioned variables can be illustrated diagrammatically as follows :

(IV) (MV)

Impact
High

Impact
Service Quality H4 Consumer H6

High
Age
❑ Tangibles

Impact
Low
❑ Empathy (IIV) (DV)
H5
❑ Responsiveness H1 High Impact
‫ــــــــــــــــــــــــــــــــــــــــ‬ Customer Online Banking
❑ Database Satisfaction H2 High Impact Transactions
Impact
High

H3
❑ Hardware
❑ Software
❑ Network Consumer
Education (MV)

High
Graduated High school Primary school
Graduated
 2.4 Research Hypotheses
The purpose for our research to study the impact customer satisfaction on the relation between service quality and using online banking
transactions, from the literature review and our illustrated analysis we found the following hypotheses:

• There is a positive strong significant impact of service quality on the customer satisfaction. The higher service quality, the higher customer
H1 satisfaction.

• There is a strong direct impact of customer satisfaction on using online transactions. The higher customer satisfaction the higher using
H2 online banking transactions.

• Consumer Education has a direct positive significant impact on increasing the customer satisfaction rate among using online banking
H3 transactions, the higher of the level of education, the higher customer satisfaction then the higher using online banking transactions.

• There is a positive strong significant impact of customer satisfaction between service quality and using online banking transaction the higher
H4 customer satisfaction the higher using online banking transactions.

• Consumer age has a direct negative significant impact on using online transactions the higher of consumer age the lower using online
H5 banking transactions.

• there is a positive strong significant impact of service quality on using online banking transactions, the higher service quality the higher
H6 using online banking transactions.
 3. Data Collection & Analysis
3.1 sources of data collection
3.2 data collection approaches
3.3 data collection methods , techniques and tools
3.4 data analysis methods and techniques
 3.1 sources of data collection

There are different sources and methods for collecting data. The two main sources that are generally used are
primary and secondary sources. For this research, the two sources were used together:
Primary Source: Structured interviews were conducted with Bank C employees to obtain results related
to service quality and customer satisfaction, while semi-structured interviews were conducted with Bank C
customers to obtain results regarding their satisfaction.
Secondary source: The secondary data was collected through a review of the literature related to
research and through annual reports issued by Bank C, which helped in obtaining data on the number of
banking transactions through the Internet, as well as obtaining the average age of consumers and their
educational level.

3.2 Data Collection Approaches

We adopted a Quantitate and a Quantitate longitudinal approach to collect data so used structured and semi-
structured interviews This study examines data within bank C through an analysis of structured and semi-
structured interviews data collected in the 1st quarter of 2022
 3.3 data collection methods , techniques and tools

1. Data collection method

We adopted the case study and case study observation in our proposal inside bank C, in our research we
targeted the bank consumer, key account managers and IT department of the bank

2. Data collection technique

We have adopted interviews and questionnaires as a means of obtaining data during the research
Telephonic interviews were conducted with bank C consumers. managerial interviews were conducted with
CRM and key Accounts Managers and IT Department managers in bank C .

The semi-structured interviews with consumers were conducted through a telephone call, whereas CRM, key
Accounts Managers, and IT Department managers were contacted by Structured Interviews. Structured and
Semi-structured methods were used for the collection of the subjective data. The two-way focused
conversation was achieved through this method to collect information apart from the questions.
The interview protocol was followed to conduct the interview (Creswell, 2009).
 3.3 data collection methods , techniques and tools ( CONT )

Interview Design

Interview questions were directed to the employees and the consumers of bank C

A. Employees interview questions

There were four questions. Both open ended questions were used in the interview. The total approximate time
for each interview was estimated from 15 to 20 minutes maximum.

The interview questions are given under appendix.

1. Does IT influence employee productivity?

2. Does IT innovation influence employee productivity?
3. Does IT knowledge management influence employee productivity?
4. Does IT infrastructure influence employee productivity?
 3.3 data collection methods , techniques and tools ( CONT )

B. Consumer interview questions

There was total thirteen questions. Both open ended and closed ended questions were used in the questionnaire.
The total approximate time for each interview was estimated from 10 to 15 minutes maximum.

The interview questionnaire started with general information about the respondent age, gender, qualification and
experience. Few questions are further subdivided into sections to make it easy for the respondents in order to gain
more information. The questionnaire is designed by dividing it into three categories.

In the first category, the first question was divided into 4 sections. The questions related to the relationship between
service quality and customer satisfaction and the Tangibles factors affecting the both constructs were asked.

In the second category, questions related to Responsiveness improvement steps were asked. The questions in this
category are developed at four questions

In the third category, questions related to empathy steps with consumer were asked. The questions in this category
are developed at 5 Questions levels
3.3 data collection methods , techniques and tools ( CONT )

The detailed interview questionnaire is given under appendix.

 3.3 data collection methods , techniques and tools ( CONT )

Data Validity and Reliability

According to Patton (2001) the two factors validity and reliability should be considered by a qualitative researcher in order to judge the
quality of the study, designing the study and analysing results.

Generally, research approaches are linked with various research philosophies (Saunders et al. 2007). Therefore, to ensure the validity of this
study the research purpose and approaches were carefully analysed.

With bank C consumers and managerial interviews were conducted with key Accounts Managers and IT Department managers in bank C .

The reason for selecting two different variables, consumers and employees of bank c to gather more information about the managerial and
technical operations service quality

To keep the validity of the research, interview questions were developed based on the existing theories and literature in relevance with the
topic of the study.

While developing the questions it was targeted to focus on the research questions, research agenda, relevant theories, and main purpose of
the study. The interview guide and questions were checked carefully prior to the interviewees.

The research focuses on service quality and customer satisfaction, and it mainly targets the managerial and technical operations service
quality aiming to increase online bank transactions

The reliability of the study is considered high because all the information is gathered mainly from interviews and relevant theories.
 3.4 Data Presentation & Analysis

The data was extracted to produce valuable results. To process the data Qualitative Data
Analysis (QDA) was used.

(QDA) is a range of procedures and processes applied on data that is collected into some form
of understanding, interpretation, or explanation of people (Lincoln and Guba, 1985 Merriam,
2002).

Seidel defined the edifice of (QDA) as three pillars i.e., noticing, collecting, and thinking
(Seidel, 1998), He developed a useful model to explain the basic process of QDA. The model
shows possible interactions among these three pillars. This model is also referred to as a
symphony of noticing, collecting, and thinking (Seidel, 1998)
Data Collection
 4. Population and sampling
4.1 Unit and level of analysis
4.2 Research limitations
4.3 Complete census vs sampling
4.4 Sample size and type
4.1 Unit and level of analysis

POPULATION 1 : POPULATION 2 :
Bank C Employee Bank C Consumers

Units Age :
Units Staff :
Below 25
Executing staff
25-40
Supervisors Staff
Above 40
Mangers Staff

Levels:
Levels:
High Graduated
CRM Graduated
IT High School
Primary School
 4. Population and sampling

This study targets two types of populations

1. the bank’s employees, which are operational employees and information technology employees, who
have a direct impact on the extent of customer satisfaction with the services provided, whether they are
operational or technical services.
2. the consumers of bank c

4.1 Unit and level of analysis

In the first population, the levels were divided into administrative staff (CRM) and information technology staff,
and units were divided according to their functional level of service performers, supervisors and managers.

In the second populations, the levels were divided according to their educational levels, and the units were
divided according to their ages
 4.2 Research limitations

There are many different departments within the bank C , but in this study, we focused on
operations Department and IT Department because of their effective and influential role on
customer satisfaction in using online banking.

4.3 Complete census vs sampling

In the first population, we will use sampling as the total number of workers inside bank C is large. The type of
sampling will be Stratified Systematic Sampling as the units of this population is divided according to their job
levels, The sample is not homogeneous according to the nature of work and number of employees for each
occupation.

In the second population, we will also use sampling as the total number of consumer inside bank C is large. The
type of sampling will be Stratified Systematic Sampling as the units of this population is divided according to
their educational levels.
 4.4 Sample size and type

Representative samples shall be selected using more focused Stratified or Segment Random Sampling
to collect more relevant information and segmented by Function area which will differently inputs
from each function.

The first population consists of 1566 employees and is divided into two levels,
the first level is CRM and consists of 1305 employees, the second level is IT and consists of 261
employees
We adopted a random sample from the first community with a confidence level of 95% with number
of sample 305 employees and the response rate was 91.4%

The second population, which is the consumers, consists of 1080 consumers and they were divided
into 4 levels according to their educational levels. A random sample was taken from them with a
confidence level of 95% and a response rate of 93.1, and the sample size was 288 clients
 4.4 Sample size and type

Population 1

Population 2
 conclusion

Results of current study revealed that all service quality negative or positive,
are highly correlated to the customers overall satisfaction and using online
banking transactions .This result is an agreement with the literature and several
empirical studies. Moreover, the study traced the impact of customer
satisfaction perceptions and overall satisfaction through studying the relevant
literature and gauging opinion on the impact of customer satisfaction on the
relationship between service qualities & using online banking transactions with
different levels of age and education
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