Moderating Effect Of Customer Profile On The Relationship Between Efficacy Of Electronic Banking And Customer Satisfaction In Selected Commercial Banks In Kisumu County, Kenya.

Abstract

In the bid to compete with global developments and improve the quality of their service delivery, banks have no doubt invested much on technology, and have widely adopted electronic and telecommunication networks for delivering a wide range of value added products and services. However, the integration of customers into electronic banking is far from being realized. The aim of this study was to investigate the moderating effect of customer profile on the relationship between efficacy of electronic banking and customer satisfaction. The study specifically determined efficacy of ATMs on customer satisfaction, established efficacy of internet banking on customer satisfaction, determined the efficacy of mobile banking on customer satisfaction, established efficacy of telebanking on customer satisfaction and moderating effect of customer profile on the relationship between the efficacy of ATMs, internet banking, mobile banking, and telebanking on customer satisfaction. The study was guided by Assimilation Theory, Contrast Theory, Assimilation Contrast theory and the theory of disconfirmation. The study adopted explanatory research design. The target population of the study was registered banks customers from 12 selected commercial banks in Kisumu County. There were an estimated 2,824,404 number of customers in the 12 banks using either ATMs, internet banking, mobile banking or Telebanking .Stratified random sampling technique was used to sample 224 customers. The research utilized both primary and secondary data. Questionnaires were used to obtain the primary data. In descriptive statistics the research employed means, standard deviation and frequencies. Multiple regressions and correlation as a form of inferential statistic analysis, was used in determining the relationship between the dependent and independent variables. Findings showed Internet banking (β1 = 0.226, p<0.05), mobile banking (β2 = 0.268, p<0.05), ATM (β3 = 0.364, p<0.05) had a positive and significant effect on customer satisfaction, while Telebanking (β4 = -0.538, p<0.05) had a negative and significant effect on customer satisfaction, efficacy of ATM, Internet banking and mobile banking contributed to an increase in customer satisfaction. Findings also showed that age had a positive and significant moderating effect on the relationship between Internet banking, mobile banking and customer satisfaction (β5= 0.187, ρ<0.05). Age affected customer attitudes towards Internet banking and their ability to use it. Preferably, as individual get older they are more likely to use Internet banking. The study recommended that Banks should also raise awareness of the online banking and its advantages so that customers can adopt and embrace its use. The banks should also assure customers that the security offered to them cannot be breached. They should be adequate and the system needs to be user- friendly so as to enhance customer satisfaction.