1. finance
2. bank

Journal of Contemporary Management Sciences
Volume 4 (2) 79-88
JCMS Publication, 2015
Journal of
Contemporary
Management
Sciences
Perceived e-Service Quality: Study in the consumer-banking sector
Yohan Wismantoro
Ririh Dian Pratiwi
Wikan Isthika
Faculty of Economics and Business, Dian Nuswantoro University, Semarang - Indonesia
[email protected]
ABSTRACT
The development of information and communication technology influences the structure of behavior in the various
sectors of the economy, both micro and macro. This paper explores the impact of e-service dimensions on perceived
e-service quality in the consumer-banking sector. In the banking industry, information and communication
technology enables the development of customer service where customers can actively participate in transactions
with a technology called self-service technology (SST). In order for the application to provide optimum benefit to
the bank, the quality of SST becomes very important because it is directly related to satisfaction and customer
loyalty. By using regression analysis approach, this study aims to determine the effect of e-service dimensions
which consists responsiveness, easy to use, personalization, security, and web design on perceived e-services
quality. The results indicate that only the dimensions of responsiveness and security are statistically proven positive
and have significant effect on the perceived e-services. It reflects the importance of responsiveness and security for a
customer. Therefore, the design system of e-services are increasingly responsive (fast response) and provide security
is very important to be developed by the service provider.
Keyword: e-service dimensions, self-service technology (SST), perceived e-service quality
1. INTRODUCTION
Nowadays, service providers offer their customers information technology (IT)-based service to be more
competitive in their business. They use to reduce production and service cost as well as to create value-added
services. IT-based services such as Internet services, self-service machines and touch-phone services are rapidly
increases. Thus, customers become more familiar with self-service technologies (SSTs). The occurrence of SSTs has
stimulated predictions of how technology will affect interactions between customers and service providers.
Dabholkar et.al. (2003) states that IT can help enhance service quality by increasing convenience, providing extra
services, and collecting service performance information for management use. Fitzsimmons and Fitzsimmons (1997)
highlight the advantages of IT in services such as the creation of entry barriers, enhancement of productivity, and
increase of revenue generation from new services. Many service industries have used IT-based service systems to
remain competitive (Shu-Hsun Ho and Ying-Yin Ko, 2008).
In Indonesia, these phenomena are triggered by significant diversification of digital money, which has occurred
since 2012. Nowadays, the use of digital money is significantly increasing, although it is still lower than that of
common money and demand deposit. It has increased from 586.046 transactions to 137 million transactions. Debora
(2014) in startupbisnis.com states that internet banking transactions in Indonesia reach Rp.3.642 billion. The
increasing number of internet banking users is closely related to the facilities and internet access, which have been
widely spread throughout Indonesia. The rapid development of internet access causes the banks to gradually
increase their services by maintaining their websites and providing various services such as SMS banking and
internet banking.
Several researches have been conducted to measure the quality of online services in banking industries as well as
other industries. Gauli and Kumar Roy (2011) had conducted a research which shows that common services quality
influences costumer's satisfaction and loyalty. Another research done by Singh (2013) finds that technology
development has changed the banks.
Banking industries always improve their service quality because they realize that it is highly related to customers‟
satisfaction. The role of IT-based service in increasing customers‟ satisfaction has been shown in several previous
researches that are expected to bring the perception of customers about the overall quality of services (Zhu et.al,
2002; Yen and Gwinner, 2003; Wang et.al, 2003; Janda et.al, 2002).
This research focuses on the impact of electronic services given by banking industries (which include ATM service,
EDC service, mobile banking and e-banking services) on the customers‟ perceived e-service quality.
The
hypothesized model is then tested based on the data collected from a sample of bank customers. The data were
analized by using regression analysis approach.
2. LITERATURE REVIEWS
IT-based service and E-Banking Quality
Nowadays, information technology has changed the shape of the services in many ways. Therefore, it is necessary to
incorporate attributes of IT-based service delivery system as part of a service quality measurement (Zhu et.al, 2002).
In an environment where goods and services are available in the form of digital information, customers can serve
themselves without having a face-to-face encounter (Internet Self Service Technology). It is very crucial to maintain
the continuous use of Self-Service Technology in order to obtain the customer perceptions. This study refers to the
concept of IT-based services suggested by previous studies, such as the Yen and Gwinner (2003), lose a few
attributes of Internet Self Service Technology (ISST) i.e. control, on performance, convenience, and efficiency.
Wang et.al (2003), Technology Acceptance Model (TAM) found that computer self-efficacy had a significant effect
on some of the things that are attached to internet technology, namely perceived usefulness, ease of use and
credibility.
Janda et.al (2002) found the variables of performance, access, security, sensation, and information. The study results
of Walker et.al (2002) include the capacity, desire for control, individual needs fulfillment, perceived accessibility
and complexity, perceived risk, perceived relative advantage, and technical reliability. Furthermore, Moutinho and
Smith (2000) in "Modelling bank customer satisfaction through mediation of attitude towards human and automated
banking" generate ease of banking factor variable. Jun and Cai (2001) in his research lowering the 6 (six)
dimensions of the online system, i.e. the content, accuracy, ease of use, timeless, aesthetics, and security.
Radomir and Voicu Nistor (2012) state that electronic banking services enable the banks to deliver their products
and services directly to their customers. Online service is not limited to transactions via website. It refers to the
facilities that do not require face-to-face interaction between the customers and bank officials. Transactions through
ATM, internet banking, and mobile banking are some examples of e-service. In other words, e-service occurs when
the customers do the transactions through interface, ATM, and website to fulfill their needs. E-service is expected to
be an effective and efficient banking facility.
A research conducted by Hermana (2010) shows that e-banking users in Indonesia mostly have an undergraduate
degree and an established career with medium to high income. The result also demonstrates that there is no different
perception about e-banking service from private or state-owned bank. This is because the government does not
distinguish monetary authorities in terms of banking regulation and monitor. An interesting finding reveals that
customers using e-banking perceive that e-banking is relatively unsafe. The research suggests that in the future, the
quality of information and transaction security becomes an influencing factor in the e-banking service competition in
Indonesia. Besides, the research introduces the advance of technology, especially internet and e-banking for middle
to low class society. Thus, through e-banking all bank services can be benefitted by all customers.
3. Hypothesized Model
This research adopted Al-Tarawneh and Atallah (2012): Measuring E-Service Quality from the Customers'
Perspective: An Empirical Study on Banking Services. They proposed the key dimensions of e-service quality are
reliability, responsiveness, easy to use, personalization, security, and website design (See table 1 for the constructs
definitions). This research found that E-service quality was directly associated with customer perceived service
quality.
Table 1. Constructs definitions
Construct
Definitions
Customer perception of reliability of the site (e.g., confirmation emails, order
Reliability
tracking functions) and accuracy of service promises(e.g., delivering what is
ordered)
Responsiveness
Easy to Use
Personalization
Customer perception about the fast response givenand getting the help when
needed.
Customer perception of the user-friendly e-service system
Customer perception of the individualized attention and differentiated service
that are tailored to the individual needs and preferences
Security
Customer perception of the accuracy and security of financial transactions
Web Design
Customer perception of the website interface such as visually appealing and
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well designed website
This study uses the SERVQUAL model as its starting point suggests that:
H1
: E-service quality dimensions (reliability, responsiveness, easy to use, personalization,
security and website design) are correlated to overall service quality.
H2
: There are positive relationships between dimensions of e-service quality and perceived
E-service quality
Reliability
Responsiveness
Easy to Use
Personalization
Perceived E-Service
Quality
Security
Web Design
Figure 1: Proposed Model
Statistically all indicators have been tested and have met validity and reliability criteria (Ghozali, 2005).
Partial least square was conducted to analyze the relationship between variables related to the perception about eservice quality. After testing the classic assumption, correlation analysis was conducted. This proves that the data
were free from multi co linearity. Studenmand (1992) states that the relation between variables should not be higher
than 0.80. The result shows that the relationship between variables is under 0.90 with the highest score 0.702. This
highest score is between „easy to use‟ and „personalization‟ variable.
4. DATA COLLECTION AND ANALYSIS
The population of this research is bank customers who used e-service facilities in Semarang, Indonesia. By using
non-probability sampling approach, this research used a set of data from 100 academician respondents who are
expected to have enough knowledge about IT. E-service form several banks (Bank Mandiri, BRI, BCA, BNI, Bank
Danamon, Bank CIMB Niaga, BII, Bank Jateng, BII dan Bank Muamalat) are represented in this research.
Demographically, the respondents consist of 43 males and 57 females. Most of them (61 percent) are married. Based
on their age, they were grouped into three categories: 47 percent are 25 – 30 years old, 22 percent are 31 – 36 years
old, and 31 percent are older than 36 years old. The data shows that most of the respondents have been using eservice facility for more than two years.
Partial least squares test was used to measure the relationship between variables that related to the quality of service
and the customers‟ perception. Independent variable influences the dependent variable when the significance value
is under 0.05 (Ghozali, 2005). Meanwhile, Partial Least Squares test was also used to see the relationships between
variables in e-service quality aspect (such as reliability, responsiveness, easy to use, personalization, security, and
design) and customers‟ perception on e-service quality.
5. RESULTS AND DISCUSSION
Table 2 shows that e-service quality variables (reliability, responsiveness, easy to use, personalization, security, and
website design) correlated to overall service quality as we proposed in H 1.
Tabel 2. Correlation Analysis
Easy
to
Personali-
Variabel
ESQ
Reliability
Responsiveness
Use
zation
Security
Design
ESQ
1
0.486
0.495
0.526
0.55
0.581
0.523
1
0.414
0.597
0.535
0.397
0.450
1
0.221
0.324
0.332
0.272
1
0.702
0.557
0.684
1
0.504
0.581
1
0.584
Reliability
Responsiveness
Easy to Use
Personalization
Security
Design
1
Tabel 3. ANOVA Test Result
Model
1
Sum of Squares Df
Mean Square
F
Sig.
Regression
133.742
6
22.290
16.711
.000a
Residual
124.048
93
1.334
Total
257.790
99
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Tabel 4. Regression Test Result
Unstandardized
Standardized
Coefficients
Coefficients
Collinearity Statistics
Model
B
Std. Error Beta
T
Sig.
Tolerance VIF
1
(Constant)
-1.033
.950
-1.087
.280
Reliability
.056
.065
.084
.865
.389
.551
1.815
Responsiveness .152
.046
.271
3.287
.001
.759
1.317
Easy
.038
.060
.078
.628
.531
.332
3.013
Personalization
.102
.066
.166
1.559
.122
.454
2.202
Security
.155
.054
.270
2.855
.005
.578
1.729
Design
.066
.067
.103
.975
.332
.461
2.170
Table 3 shows the test result of the model used in this research. The test shows the significance value is
p=0.000. This means that the model of this research can be used because the significance value is under 0.05.
Furthermore, it is also found that R2 value is 0.519 or 51.9%. It means that the independent variables in e-service
quality (independent variables) influence the costumers‟ perception about e-service quality (dependent variables) for
51.9% while the rest of the dependent variables are influenced by other variables that are not included in this
research.
The result of partial least squares test is shown in table 4. It discloses that all the variables of e-service quality, i.e.
reliability, responsiveness, easy to use, personalization, security, and design, are positively correlated to costumers‟
perception on banking e-service quality. However, there are only two variables that significantly influence the
customers‟ perception. Those variables are responsiveness and security with significant values p=0.001 and p=0.005
respectively. Meanwhile, the statistic test shows that reliability, ease of use, personalization do not significantly
influence customers‟ perception (significance value p>0.05).
This result slightly different with the previous research conducted by Tarawneh and Atallah (2012) in Amman,
Jordan. They found that all variables such as reliability, responsiveness, ease of use, personalization, security, and
design influenced the customers‟ perception about e-banking services. In this research, only responsiveness and
security are proven to be significantly influence the perceived service quality. In addition, reliability has the
strongest influence than any other variables. Sakhaei, Afshari, and Esmaili (2014) used seven variables that
influence service quality of internet banking users in Iran. They found that reliability is the most effective variable
that influenced the customers‟ perspective on service quality.
The result of this research is in line with Khalil‟s (2011) research that analyzed online service quality and
customers‟ perception in Bank Islam Malaysia Berhad. Khalil (2011) used four variable dimensions, i.e. tangibility,
reliability, responsiveness, and empathy. He found that both reliability and responsiveness influence customers‟
satisfaction, but responsiveness is the strongest influential variable. In addition, Zafar, et.al (2011) states that
customers‟ satisfaction can be measure through quality aspects such as efficiency, reliability, responsiveness,
fulfillment, privacy, and assurance. The different results may due to the different region of the population and
sample used. However, the result of this research is in line with Khalil‟s (2011) that used Malaysian as the research
subject and found that responsiveness variable has the strongest influence on customers‟ satisfaction. Furthermore,
this research is also indirectly in line with Tarawneh and Atallah, K (2012) in which security is confirmed as the
strongest variable.
Although it is slightly different with previous model proposed by Al-Tarawneh and Atallah (2012) in which all
variables (reliability, responsiveness, ease of use, personalization, security, and web design) influenced the
customers‟ perception on e-banking services, the result can be explain as follows:

Responsiveness relates to the fastness, preciseness, and clarity of the responses given by the bank to help or
serve the customers. In this study, the hypothesis that assumes responsiveness significantly influences perceived
e-service is statistically proven. This indicates that the ability and willingness to give fast and precise service to
the customers by giving clear information are very important for the customers. Thus, the effective and fast
service and the clarity of information given by the bank are the key factors of e-service quality. When the
customers face some problems related to the bank service, they will get fast and precise information to solve
their problem. For example, when the customers accidentally input the wrong transaction code, they will only
need to send their data through e-mail for the customer service without having to go to the bank directly. This
result relates to one of the advantages given by IT-based service, i.e. eliminating the distance and time of
service problems. By using IT-based service, customers do not have to queue in front of the service counter. It
also gives flexibility and fast responses form the bank as expected by the customers.

Security is also statistically proven to be the significant variable that influence the perceived service quality.
The ability to ensure the customers‟ data security and electronic transactions is one of the most important
aspects. Most of the customers concern about their private data such as PIN, ATM chip and e-banking password
as an unauthorized access of these private data may cause the customers to lose their money in their account.
Therefore, security is one of the most important aspects considered by the customers.
Meanwhile, other variables such as reliability, ease of use, personalization, and web design are not significantly
determining. Although they give better comfort in using e-service, they do not directly relate to customers‟ financial
condition, especially the disadvantages that may occur from e-service transactions.
6. CONCLUSSION
E-service given by the bank affects the customers‟ perception which in turn will influence the costumers‟
satisfaction thus maintaining their loyalty to the bank. The consumers‟ perception can be obtained from
advertisements, past experiences, to people‟s opinion. To measure the consumers‟ perception of e-service quality,
the following dimensions were used: reliability, responsiveness, easy to use, personalization, security, and web
design.
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Through partial less squares testing, it is found that reliability, responsiveness, easy to use, personalization, security,
and website design as e-service quality dimensions are significantly and positively correlated. It demonstrates that a
better perception of one dimension encourages a good perception of other dimensions. Several dimensions that have
the strongest relationship are easy to use and web design, and reliability and easy to use. Furthermore, the testing on
the influence of e-service dimensions to perceived e-service quality shows that only responsiveness and security
have a significant influence to perceived e-service quality. Both dimensions are directly related with the financial
flow of the customers‟ accounts.
Based on these findings, it is important that e-service providers (banks) inform and socialize e-service attributes,
especially those relating with e-service transaction security tips. Banks are also expected to develop an e-service
system that provides fast and accurate services to enhance perceived service quality.
It is hoped that the next research can make sample specifications, for example, comparing certain banks in Indonesia
so we will know the quality of those banks from the customers‟ perspective. The samples need to be expanded, not
only academicians but also private sector workers who have middle to low income. The research can also be
developed to test the relationship of customers‟ satisfaction and loyalty.
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