LITERATURE REVIEW

The service quality satisfaction is taken as an independent variable, 1 element bank loyalty
dependent variable and 2 elements trust and commitment are mediating variable. The emergence
of international brands competing in diverse geographical markets has given rise to the issue of
how brands should be managed in a global landscape. However, while the importance and
management of brands from the perspective of domestic marketing has been notably addressed
in the literature, studies examining brands from an international perspective are limited. Brand
equity is the intangible value added to a product by the effective use of promotion and other
marketing tools. On dimensions like image, distribution and physical design, it can provide
strong competitive advantages in product categories where most alternatives provide the same
benefits. The only serious disadvantage of building brand equity is its cost.
Customer’s Loyalty and Online Banking Services:
In the online banking industry, many factors have been found to relate with customer loyalty. For
example, fast and efficient online service, confidentiality of bank, speed of online transaction,
accuracy and timeliness of billing system, competitive pricing, service quality and social
psychology have been found to have significantly influence customer loyalty. Recent studies in
the strategic marketing of bank’s online services argued that bank specific characteristics are
more important than any other factor in determining customers’ loyalty in the service industry.
Bank loyalties deteriorate and clients may be without difficulty switch to the competitor banks.
Additionally, this problem is mainly critical in the bank service sector that depends closely on
lasting interaction with their clients.
Customer Loyalty & Online Service Usage:

Online service usage contributes a game role in the critical success factor towards
efficiency and growth of service firm. “In provision process of online service, technology
mediates the customer communication and the level of human communications is less”
(Holloway and Beatty, 2003). Gounaris et al. (2003) was of the view that SERVQUAL specially
measures the customer opinion about employee’s and service environment however it doesn’t
account for other important aspects of the service quality as price and product innovativeness.
Heskett et al. (2004) explained the level of customer devotion as a range starting from the self-
styled evangelist s (like customer in the region of affections who are almost near to 100%
[

delighted as well as satisfied with 100% loyalty) to the terrorists (i.e. those customers who are
extremely dissatisfied). Zeithaml et al. (1996) give explanation that one canmea sure loyalty by
looking at the number of clients who go on to buy from the company due to the encouraging
attitude its products generate for them.“Improved end-user satisfaction with online service
favorably reflected upon future purchase intent and rise loyalty as confirmed by Sheng and Liu
and Kuo and Wu.
Satisfaction with Service Quality:
Considering customer’s post experience with a services provider, customer’s intention to
constantly use banking services is determined by their extent of satisfaction (Bhattacherjee,
2001). The service marketing literature has concentrated on items measuring service quality to
determine customer satisfaction (Parasuraman etal., 1991b). According to Atafar & Hafiee
(2006), quality of service is considered as not only an attitude of employees of organization
towards the customer satisfaction but satisfaction can also be obtained by contrasting the
customer’s expectation derived from the use of service. Consumer pleasure and displeasure is a
cumulative pleasure. This view is determined by pleasing and dissatisfy with a product or service
all time (Zeithaml et al.1993). A theory conducted by Lenka et al, Kaura and Datta are found that
superior touchable aspects of service quality of the bank branches increase customer’s
satisfaction. Bedi (2010) used consistency, receptiveness, promise, sympathy, tangibility,
product accessibility and product ease. According to Rehman (2012), perception of the
customers regarding the dimensions of service quality can be seen after the customers has used
the product or availed the services. Service quality has been found to have direct influence on
overall customer satisfaction in the Indian banking sector (Ravichandran et al. 2010).
Trust:
The customers’ course towards technology of e-communication and the internet is recurrently a
proxy for their trust in e-banking. The scope to which they trust the electronic system is likely
correlate with their overall trust when charming in e-banking (Lee and Turban, 2001). In the
service quality literature, trust could also be thought as trust in the service itself (Parasuraman et
al., 1985, 1988). Such a relationship is crucial to managing trust, because a customer typically
must buy a service before experiencing it. The very important feature of online trading from the
customers’ view is the rise in entrance and option and particularly in the information on products
and services. Previously, a typical customer would be limited to choosing among a few local
retailers, banks, travel agents, stockbrokers, insurance agents and department stores “perhaps
limited to one’s specific country, city, or state” (Balto).Customers’ trust in internet banking
transactions has some unique dimensions: the impersonal nature of the online environment, the
extensive use of technology, and the inherent uncertainty of using an open infrastructure for
transactions (Yousafzai et al., 2009).Trust in banks has dropped from 47 percent to 31 percent in
the UK, which influences the way in which consumers see banks and in particular consumers’
attitudes to e-banking(Zhao et al., 2010).
Commitment:
Wang (2008) conducted a cross-departmental study of the financial services industry based on
three consumer samples from Taiwan. His empirical evidence suggests that commitment had a
positive and significant effect on behavioral loyalty. Commitment means that one party in a
relationship feels motivated to some extent to do business with another party. Commitment has
also been defined as enduring desire to maintain a valued relationship (Moorman et al., 1992;
Morgan and Hunt, 1994). There are two types of research identifies loyalty: sentimental and
calculative loyalty. Sentimental loyalty explains the feelings of loyalty, belonging and affiliation,
reflecting parties wish to continue a correlation due to the satisfaction of the correlation for its
personal sake “Dwyer et al, 1987, Morgan and Hunt, 1994”. Calculative commitment builds on a
cognitive estimation of an ongoing correlation (Geyskens et al)
Model Frame Work

Hypothesis:
H1: There is a positive relationship between service quality satisfaction and bank loyalty.

H2: There is a positive relationship between service quality satisfaction and commitment.

H3: There is a positive relationship between service quality satisfaction and trust.

H4: There is a positive relationship between commitment and trust.

H5: There is a positive relationship between trust and bank loyalty.

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