A study on the determinants of customer loyalty using internet banking website in Malaysia

Abstract

Internet banking has become one of the most popular services utilized by the Malaysian retail banking customers in recent years. Multiple bank providers are working continuously to add or improve their internet banking services in order to make their bank a better choice among their customers as well as to retain them. Despite its attractiveness, customer loyalty towards internet banking website has become an issue due to stiff competition among the banks in Malaysia. As the development and validation of a customer loyalty model in internet banking website context in Malaysia had yet to be addressed by past studies, model has been developed in this study based on IS and marketing literatures to investigate on the customer loyalty towards internet banking website. Model was tested using data collected from a survey of internet banking users in Malaysia. Testing involved investigating the factors that influence customer loyalty towards internet banking website in Malaysia and also identifying the most essential factors among the investigated factors. Based on the findings, trust, habit and reputation were found to have a significant influence on customer loyalty towards internet banking website in Malaysia. Out of the three significant factors, reputation plays a stronger influence than trust and habit. Nevertheless, the results also indicated that service quality and perceived was not significantly related to customer loyalty. Based on the findings, the implications, conclusion, limitations and suggestions are discussed.