MARYLAND INTERNATIOAL COLLEGE

SCHOOL OF GRADUATE STUDIES

DEPARTMENT OF MASTER OF BUSSINESS ADMINSTRATION

BUSINESS RESEARCH METHODS INDIVIDUAL ASSIGNMENT, ARTICLE REVIEW ON

THE IMPACT OF E-BANKING SERVICE QUALITY ON CUSTOMER SATISFACTION:
EVIDENCE FROM THE LEBANESE BANKING SECTOR

SUBMITTED BY SELEMON BERIHUN

SECTION ONE

ID MBA/GR01/355/15

SUBMITTED TO Dr. GOITOM G. (Asst. prof)

JANUARY, 2023
ADDIS ABABA, ETHIOPIA
REVIEW OF ARTICLE

Author: Jamil Hammoud1,

Rima M. Bizri1,
And Ibrahim El Baba1

Title: The Impact of E-Banking Service Quality on Customer Satisfaction: Evidence from the
Lebanese, Banking Sector

Name of journal, SAGE Open research

Year of publication, 2018
DOI: 10.1177/2158244018790633
Page 1-12
The main purpose of this article was to examine or analyze the relationship between the
dimensions of E-Banking service quality and customer satisfaction to determine which
dimension can potentially have the strongest influence on customer satisfaction. There are
different theories about customer satisfaction can be found in literature like Dissonance Theory
(also known as dissonance reduction theory), Contrast Theory(opposite of the Dissonance
Theory), Comparison Level Theory, Value Percept Theory, Attribution Theory(The Attribution
theory has been mostly used in dissatisfaction/ complaining behavior models than in satisfaction
models) and Equity Theory. Different literature shows that Technology has succeeded in making
various aspects of life easier for the societies of today. “E-banking is defined as the automated
delivery of new and traditional banking products and services directly to customers through
electronic, interactive communication channels.” E-banking offers the following competitive
advantages: Cost reduction; better customer service; lesser paper work; and better visibility and
elasticity.
Those authors use convenience sampling technique to gather data and the survey completed by
banking clients who visited branch and agreed to complete the survey with total number of 258
samples by using quantitative approach. The gathered data were statistically analyzed using
structural equation modeling with SPSS and Amos (20). The author uses that four exogenous
variables which is efficiency, reliability, security and privacy, and responsiveness and
communication are four important dimensions of customer satisfaction with E-Banking service
quality (independent variable) and one endogenous variable which is customer satisfaction with
service quality (dependent variable). Client perceptions were measured using a Likert-type scale
with 1 through 5, 1 being strongly disagreed and 5 being strongly agree. Those authors use
structural equation modeling (SEM), as measurement model is used to assess the relationships
between the indicators and the latent constructs in terms of reliability and validity. SEM results
show that reliability of the E-Banking service has the greatest contribution (standardized beta
=0.87) to customers’ perceptions of service quality, followed by efficiency and ease of use
(standardized beta = 0.81), responsiveness and communication (standardized beta =0.79), and
safety and privacy (standardized beta = 0.68), the last being the factor with the smallest
contribution to service quality of E-Banking.
The major finding of the authors was reliability, efficiency, and ease of use; responsiveness and
communication; and security and privacy all have a significant impact on customer satisfaction,
with reliability being the dimension with the strongest impact. E-Banking has become one of the
essential banking services that can, if properly implemented, increase customer satisfaction, and
give banks a competitive advantage. Knowing the relative importance of service quality
dimensions can help the banking industry focus on what satisfies customers the most.

The main strength of the Author is that

 The topic of the article is clearly defined, explanatory, and it not ambiguous.
 Reviewing different literatures, Conceptual modeling of ideas and proper citation.
 Strongly showed the hypothesis they are mentioned and those hypothesis in the results
part(they strongly shows hypothesized relationship are supported or not supported with
predicted direction)
 The drawn conclusions of the article were meeting to its specific objectives which are
stated at the beginning of the research

The main weakness of the Author is that

 Those authors didn’t mention major limitation or challenges they are facing during
conducting the research and they also not mentioned limitation of those paper.
 Authors are not listed all variables that determine customer satisfaction, they listed The
four exogenous variables which is efficiency, reliability, security and privacy, and
 responsiveness and communication are four important dimensions of customer
satisfaction, it is better to show all variables of service quality that is SERVQUAL

Conclusion, E-banking or banking online means accessing your bank account and carrying out
financial transactions through internet on your Smartphone, tablet or computer. Customer
satisfaction is imperative for the incessant survival of any organization around the world. The
general purpose of measuring quality service is to ensure customers are satisfied. The extent to
which buyers feel their needs have been met is called customer satisfaction. E- Banking offers
for managing one’s finances. Most literature suggests that efficiency, reliability, security and
privacy and responsiveness and communication are four important dimensions of customer
satisfaction with E-Banking service quality. In today’s competitive corporate environment,
quality of service is an essential element for enhancing customer satisfaction and customer
loyalty. These are important factors in improving the performance of banks and in determining
their success that is better profitability and a bigger market share. Good service quality leads into
customer satisfaction and, therefore, makes the firms more competitive in the market. High
service quality can be achieved by identifying problems in service and defining problems in
service and defining measures for service performances and outcome as well as level of customer
satisfaction. Once the online banking system is setup, the more users of this online system, the
less cost per unit of transaction or per unit of customers. Therefore banks encourage customers to
use online banking. Banks should always recommended to aware their customers issues like
weak passwords and using unsecured network makes people vulnerable to online attacks, like
login credential theft and phishing , which could result in fraudulent bank transactions and
prevent customers from dissatisfied.

Generally, this article was to examine or analyze the relationship between the dimensions of E-
Banking service quality and customer satisfaction. This title is very sensitive in our country
Ethiopia which researchers must be conduct on this area. I would like to give thank to the
researcher because he organize, analyze and accomplish this best articles. Finally we would like
to thank Maryland international college for giving chance to make article review on the
relationship between the dimensions of E-Banking service quality and customer satisfaction’s
and we would like to appreciate our instructor Dr. Goitom G. who helps us with full compassion,
encouragement and constructive comments and makes as to do our best.
REFERENCE
Jamil Hammoud et’al The Impact of E-Banking Service Quality on Customer Satisfaction:
Evidence from the Lebanese Banking Sector, 2018: 1–12 DOI: 10.1177/2158244018790633
journals.sagepub.com/home/
Atila Yüksel & Fisun Yüksel Consumer Satisfaction Theories: A Critical Review Nova Science
Publisher, New York, 2008