college essay:Research on service quality of China’s intern
Research on service quality of China’s internet bank
1.
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1.1 Research background
1.1.1 Internet banking market has huge potential
1). The number of Internet users’ rapid growth provides a good foundation for Internet banking
China's Internet economy in 2006 greet a new peak of development, according to the market research company IRESEARACH survey information shows that in 2006 China's Internet users reached 165 million, representing a growth of 30 per cent compared with last year. It is expected that in 2007 the number of Internet users will reach 205.6 million. The number of Internet users’ rapid growth has provided a good foundation for online banking in China.
Source: Iresearch, www.iresearch.com.cn
2) Internet banking business has increased rapidly
On June 1996, the United States began to Internet banking, then eight months later, the Bank of China also set up web sites on the Internet, via the Internet to provide banking services to the community, which marks the first domestic bank in the Internet, after nine years, domestic online banking is growing in an unprecedented speed, Internet banking business is rapidly increasing. This is shown in customer numbers and transaction amount two aspects.
According to market consulting firm IRESEARCH "China's Internet Banking 2006 report" shows that the number of domestic users of Internet banking in 2001 from 2.15 million increases to 18 million in 2006, accounting for 16.9% of the number of the whole Internet users. It is expected in 2007 this ratio will increase to 21.7 percent.
Source: www.iresearch.com.cn
With Internet banking’ s development in China, the number of users increase and the frequency of use increase, China's online bank transactions from 2003’s 23.3 trillion Yuan rose to 49.3 trillion Yuan in 2004, the growth 103.2% compared with last year.#p#分页标题#e#
All figures indicate that China's online banking market has tremendous potential. It is expected that from 2005, the proportion of Internet banking business will gradually accounted for 20 per cent of banking business. Internet banking in the modern commercial banking operation and development will occupy an increasingly prominent position.
1.1.2 Service quality which reflects differences of the key competitive advantages and decision factors in Internet banking
The network economy is the era of a "customer-centric". The introduction of Network services completely changes the ways of establishing and maintaining business between the bank and its customers. In traditional banking, clerks through frequent contacts with customers provide services, while the network environment which is in the absence of direct interpersonal communication, the banking system only through the electronic services establishes and strengthens the perception of customers to the quality. In addition, the network economy is a two-way interactive, customers’ choice of service has great space, they can easily compare the banks, therefore, service quality becomes a key decisive factor to reflect a difference in the quality of services and competitive advantages, Yang (2001) stresses that, it is very important for the quality of service to attract and retain customers. The more the quality of service customers expect and demand are met, the higher the level of satisfaction will be, the easier it is to maintain customer loyalty, and loyalty is the key to the long-term benefits. To sum up, from the customer's point to concern about the quality of service is essential to the success of online banking.
1) The traditional model of the services quality in the network environment encounters embarrassment
For traditional service quality’s service model development from the 1970s to now have been more perfect, in which the most widely used are SERVPERF and SERVQUAL models. Applied to the traditional banking, SERVQUAL includes tangibility, reliability, responsiveness, assurance and Empathy the five dimensions. SERVQUAL model is built on customers’ perception, which takes customers’ subjective consciousness as measurement keystone; it firstly measures customers’ expectation to service, then measure customers’ perception to the service, and then calculates the differences between these two, and takes it as the basis to judge service quality (Parasuraman, 1988). SERVPERF is invented by Cronin and Taylor (1992), which means performance perceives service quality. However, in the era of the Internet economy, the study finds that the traditional model of the quality of service is not suitable for network environment, and must be modified (Edvardsson and Sellerlind, 1997). However, the field of researching current domestic Internet banking services on the quality is still blank. With the entry of foreign banks, they will bring more mature and better online banking services, domestic online banking will suffer more intense competition and more severe challenges. Therefore, the Construction of Quality Model of Internet banking services and the need is significantly increasing importance.#p#分页标题#e#
1.2 Research motivation
After China's accession to the WTO, China’s financial market will further open up, China's commercial banks will face severe competitive pressures. The rapid development of information technology makes e-bank services become the principal means for banks to obtain competitive advantages. In this competitive process, how to improve the operating performance of banks and banking services has become the focus of attention. Many studies show that online banking Quality of Service (Service Quality) will be the important factor to impact on the popularity of Internet banking services and in-depth development. While in China, e-banks have many problems at present, such as: 1). available varieties of Internet banking services are only limited in information query on the accounts, the scope of application of transfer payments is still very limited, and no loan, investment and so on. 2). Domestic credit card business is still very backward, still confines to a settlement tool seriously impedes the online banking and e-business development. 3). Internet banking service quality is not high, it is slow and has complicated procedures, does not meet convenient and fast purpose.
1.3 Research objectives
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Through analysis of domestic banking business, referring to traditional services in the service model as well as foreign-related research results, construct China's internet Bank service quality evaluation model based on customer.
Empirical Study through the established Internet banking service quality model, using a questionnaire form adopts appropriate data analysis to obtain Internet banking service quality evaluation most frequently used by customers.
Analysis of customer evaluation results, advances management strategies and recommendations to improve the quality of Internet banking services.#p#分页标题#e#
1.4 Research features
From the research background and significance, we can see the current Internet banking business opportunities are unlimited; in the future it will become a very important position for foreign banks to fight for various customer resources and indicate the main competitive advantage. Therefore, how to improve online customer service quality to increase the number of online transactions and amount, and increase customer loyalty to retain and attract customers, online banks are all very concerned about the topic and attention. According to PZB (1985), as well as ZPM (2002) the "gap model" (see section I of chapter 2), there is a gap between the expectations of customers for services and corporate managers’ understanding of these expectations. Therefore, from a management point of view, if there is a model with a point of customers’ view to get their evaluation of the quality of online services and the real level of quality of banking services, the banks will be not only able to clearly understand the real overall level of their own service quality in users’ eyes, as well as details on the service advantages and disadvantages, but also can be informed of the biggest factors that users pay most attention and have the most largest impact on the overall service quality to provide support and management decision-making to improve online banking quality of services. At present, the quality of online services although has been emerged in academia and the industry, but not yet from an overall perspective to look at it. At the same time, so far only a small portion of the empirical researches focus on e-banking services and the quality model.college essayhttp://www.ukthesis.org/Thesis_TipsTherefore, based on the above reasons, this research is a very worthwhile study.
1.5 Research significance
Service quality research is very important in China. Because as internet banking technology system’s end-users, bank customers’ perception on the quality of service is essential. Banks in order to survive in the face of fierce competition in the field of Internet banking obviously need to provide high-quality service to customers. In order to do this, banks need to understand the factors and the quality of service attributes, and then establish an effective and comprehensive internet banking service quality measurement assessment index system to strengthen the control on the quality of service. This paper will attempt to establish a set of service quality evaluation index system to adapt Chinese enterprises Development of internet banking, to provide detail indicators to measure banking service quality, and strive to enhance the country's Internet banking service quality, to compete in the fierce market to Gain a firm foothold and competitive advantage.
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2. Literature review
In the previous chapter, the author expounds the background, the value and significance of the study to further develop the e-banking services Quality Model. Before entering the Research subject, this chapter will discuss and organize the meanings of the quality of services, electronic service quality, as well as Internet banking, Internet banking service quality model as the theoretical basis of this study.
2.1 The traditional service quality
2.1.1 The concept of service
Although service in the national economy has become increasingly important, even though we have already entered the era of so-called service economy, but research in the field of service management there are so many "gaps", it is difficult to find even the authority of the service definition. Many scholars in the research services management and marketing issues from different angles define the concept of service.
Definition of the United States Institute of Marketing (1960): services are interests, satisfaction and other activities along with sales of goods provided to the customers.
Reagan definition (Regan, 1963): services are intangible satisfied results or the combined activities of tangible and intangible results when customers who buy products or services receive.
Judd definition (Judd, 1964): Service is a market trading activity, the most prominent characteristic of this activity is that is not involved in the ownership change.
Bessom definition (Bessom, 1973): For the consumers, the service is able to provide them with any interest or satisfaction. These activities, they personally do not have the ability to self-provide or unwilling to self-provide.
Blois definition (Blois, 1974): Service is an activity for sale, which can bring benefits or satisfactions to customers, but it does not cause a change of "commodity" material pattern.
Stanton Definition (Stanton, 1974): Service is perceivable but invisible activity, which is able to bring consumers or enterprises benefits or satisfaction.
Lehtinen definition (Lehtinen, 1983): service is one or a series of activities, which are finished in the interact course of customers and service providers, and make customer satisfied.
Kotler definition (Kotler & B loom, 1984): service is a kind of activities or benefits provided by the other, it is usually invisible, and does not involve ownership change. Production of services can be associated with tangible products, may also be irrelevant.
Gummesson definition (Gummesson, 1987): Service is a commodity that can used to sell but is invisible.
Gronroos definition (Gronroos, 1990): service is a one or a group of invisible nature of the activities. The most important function of Service is to provide the solutions to the problems. #p#分页标题#e#
Gronroos definition (Gronroos, 2000): service is a process which is consist of a series of more or less invisible activities, which is posed in the process of the customers and physical resources or employees’ interaction, which are visible resources (or tangible products, tangible system) as solutions for customers.
This arrangement can be found some of the regularity things. The definitions in the 1960s of 20th century are built on traditional marketing concepts above, which serve it as an adjunct to physical commodities. By the 1970s, services have tended to separate concept of "activities". After the 1980s, the service has completely got rid of the concept of "commodity" shadow, become increasingly scientific and perfect. We can also see that, although many scholars have different interpretations, but the basic understanding of the nature of services is the same, such as the intangible and interactive.
Summed up the views of scholars above, the service can be given the following definition:
Service is an activity and process with more or less the characteristic of invisible, and it is completed in the interact process of service providers and recipients of services (clients). the main target of services is to providecollege essayhttp://www.ukthesis.org/Thesis_Tipsbenefits to the other, at the same time, the service is an important means for enterprises to implement differentiated strategy, through differentiation of service enterprises can create their own long-term competitive advantage.
From the system and dynamic perspective, some service managers divide services into three levels: the Core Services, Facilitating Services, and Supporting Services. Core services are the cause for services exist in the market, for a company may have a number of core services. In order to enable customers to use the core services, the company must also provide some ancillary facilities services to enable customers to use the core services more conveniently. Support services are also a kind of additional services, but the functions are different from facilitating services. Support services’ function is not to facilitate customers in using or consuming the core services, but it can increase the value of services, and separate the service of this enterprise from competitors’ services.
This pure classification excludes the perceived factors of service quality from the perspective of customers, so it is not complete and therefore those factors must be incorporated. According to most of the service industries’ features, services process perception carries through from the three main aspects, namely, the availability of services, customers and organizations’ interaction and customers’ participation. These elements and the concept of the above-mentioned services combine can constitute a broad concept of service:
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The broad definition of service
Availability Interaction
Customers’ participation
Source: Grouroos C. Service Management and Marketing: A Customer Relationship Management Approach (2000)
2.1.2 The features of service
Scholars have different service definitions and as for the characteristics of the services, there are still different views. According to PZB (1985), service characteristics are summarized as follows:
1). Intangibility: Most of the services are not entities, and cannot be calculated, measured, tested and recognized in advance. Therefore, customers can only actually contact the entities of service but only perceive it when accepting the service. Also because of this, it makes very difficult to perceive service and measure service quality.
2). Heterogeneity: services will change with different people (such as producers, customers), time and locations. Services therefore have not certain standards, as well as no certain standards to measure the performance of services.
3). Inseparability / simultaneous): refers to that the production and consumption of services must be simultaneous and cannot be separated.
4). Perishability: As the production and consumption of services are simultaneous, and therefore cannot be stored in advance to wait for customers’ consumption.
Moreover, some scholars advocate the effectiveness of the overall values that customers obtain from the services. This indicates that "services" not only include invisible aspects, also include visible aspects, and is mainly in order to meet customers’ demand during the transaction. This also means that the customers through their experience measure the quality of service, so customers’ subjective perceptions will greatly affect the success and failures of services.
2.1.3 The concept of service quality
In the past two decades, scholars have made a number of valuable researches on the quality of services and related issues. The most representative figures include Gronroos who (Gronroos, 1982) points out that the quality of services includes technical quality (services results) and functional quality (service process) the two parts. PZB (1985) consider that service quality depends on customers’ expectations before buying, perceived process quality and perceived result quality. The quality of service is the product of the three. PZB think that customers from 10 Dimension measure the quality of service: reliability, responsiveness, competence, appropinquity, courtesy, communication, trust, security, understanding and tangibility. In 1988, these were reduced to five, which are tangibility, reliability, responsiveness, assurance and empathy.
2.2 E-service Quality
The above discussions are the overall concept of quality of services, but when facing the arrival of new era of e-commerce, whether the traditional model of the quality of service can be used on the network environment must be tested again. According to the studies we can find that the traditional model is not suitable for the quality of service in network environment, and therefore to be modified.#p#分页标题#e#
2.2.1 The definition of E-service
E-business was first proposed in 1997 to be used by IBM (Amor, 2000), which refers to that through the Internet to achieve sales, serve customer and format the partnership of business. E-business is composed by electronic commerce (e-commerce) and electronic services (e-service). Among them, the concept of electronic service becomes more and more believed by researchers that it is one of the key factors to the success of e-commerce.
What is meant by "electronic services"? Rust & Lemon (2001) think that electronic service is the serving role in cyberspace; Rust (2001) further more concisely defines electronic service is "through the network to provide services"; and Kuegler (1999) considers that electronic service is "enterprise through electronic means, especially the Internet, to manage all areas of customer support." In summary, from the narrow sense, the electronic service is web-based and Internet-transmission service. Broadly speaking, the electronic service is no longer just the service in the figures space, while it is through the exchange of information to provide customers with better experience.
Although we believe that the electronic customer service is built on the traditional customer service, in fact traditional services and electronic customer service have an important distinction there. In the traditional services, only employees participate in the service experience stage; and in the electronic services, the ICT (information and communications technology) or employees are all involved in the service experience stage, only via the Internet and other intermediaries. As for the Experience in the electronic services, customers can only be limited by listening, and observing, and in traditional service customers can experience all-round service. However, the traditional service is subject to the distance and business hours, the electronic service is not subject to these factors.
The current electronic service research is still at an early stage; therefore, the researches on constituting elements of the electronic services are not many. Gronroos and others made the Netoffer model, the concept of core services in a virtual market environment remains effective, but electronic services should include customers’ participation and exchange and so on. Further, Van Riel, and others made the five elements of electronic service: core services, facilitating services, supporting services, complementary services and user interface.
At present, there are two ways to research e-service. The first one is for the general self-service technology and focuses on the technical level and the formation of new categories (Dabholkar, 1996; Meuter et al., 2000; Szymanski & Hise, 2000). Another is use of existing service quality theory as further basis of empirical research (Gronroos
Et al., 2000; Parasuraman & Grewal, 2000; Kaynama Black, 2000; Zeithaml et al, 2000). This study belongs to the latter.#p#分页标题#e#
2.2.2 The definition of E-service quality
First, Zeithaml et al. (2002) is the first do define electronic service quality (E-SQ). They believe that the quality of service is the degree that websites can increase the efficiency and effectiveness of "shopping, products and services deliveries. Here service refers to rather broad, it includes not only in the process of shopping on websites, but also includes services before and after the web sites.
The research on the service quality in e-business environment is recent; many scholars have done a lot of Empirical Study on the quality of the electronic services. Quality of service in the e-business environment (e-service quality e) refers to customers’ overall evaluation and judgment to the advantages and quality of service in the virtual network market. Contrast to the traditional evaluation of service providers, when customers browse the web sites they rarely evaluate each small process; on the contrary, they may take the service as a whole / process and the results of the overall assessment. As for Internet customers, higher quality standards of e-service are the guarantees for the network to provide potential benefits to them. In addition, the interaction and openness of the network characteristics of the Internet make it more convenient for consumers to compare the technical features and product prices than traditional channels. Therefore, the online service to the consumers is particularly important. Online consumers want to get at least the same level of service quality with offline consumers or even higher demand.
Generally speaking, tcollege essayhttp://www.ukthesis.org/Thesis_Tipshe quality of electronic services means electronic service providers through "on-line" this special environment deliver services to customers, and customers’ overall assessment extent for the services; and it includes the whole process, for example, the process of browsing the websites, the process of commodities’ delivery and so on, which all belong to electronic service quality.
2.2.3 Service quality models
The most famous service quality models are SERVQUAL model and SERVPERF model. Then in the following, the author will introduce them and discuss which one is best for this study.
1) SERVQUAL
In 1988, Parasurama and the other proposed SERVQUAL model for the evaluation services Quality. Its Service quality evaluation of Customer perception is based on the customers’ expected service quality and customers’ perceived service quality after receiving services. In the course of the study, to the quality of service PZB proposed five dimensions, and in accordance with these five dimensions designed the questionnaire including 22 questions. Following mentions PZB dimensions.
Tangibility: includes physical facilities, equipment, and appearance of serving staff.
Reliability: It is capacity that can reliably and accurately fulfill the commitments. #p#分页标题#e#
Responsiveness: refers to the desire that help customers rapidly and improve the level of services.
Assurance: refers to employees’ knowledge, courtesy, and expressed confidence and reliable Capacity.
Empathy: concerns and to provide customers with personalized service.
SERVQUAL evaluation method is based fully on the customer perception, that is, taking customer subjective awareness as the focus of the evaluation. Firstly measuring customer service expectations, and then measuring the perception of customer service, which calculated the difference between the two, and as a judgement based on the level of quality of service (see table below).
SERVQUAL scales
Factors items
Tangibility 1. there are modern service equipments
2. the service equipments are attractive
3. staffs have neat wearing and appearance
4. corporate equipments match its service provided
Reliability 5. the promises made by the company can be finished timely
6. when customers have troubles, concerns can be showed and help can be provided
7. the company is reliable
8. the company can accurately provide the promised service
9. records can be kept for service
Responsiveness 10. can not rely on staffs tell customers’ accurate time to provide service*
11. it is unrealistic to expect them providing timely service*
12. the staffs can be not always willing to help customers*
13. the staffs are too busy to provide service quickly to meet customers’ requirements*
Assurance 14. staffs are deserved to be relied on
15. customers will feel safe in transactions
16. staffs are polite
17. staffs can get support from the company to provide better service
Empathy 18. the company can not provide personalized service in light with different customers*
19. staffs will not give special concerns to individual customers*
20. customers can not expect staff to understand customers’ requirements*
21. The company does not take account into customers’ interests firstly*
22. service time of the company can not meet all customers’ demand*
Notes: 1. the questionnaire uses 7 marks, 7 indicates completely agree, 1 means completely disagree. The marks between them mean different degrees. The questions of the questionnaire list at random.
2. * means these questions’ marks are the negative direction, so in the data analysis they must change into positive marks.
Sources: from PZB A Multiple-item Scale for Measuring Consumer Perceptions of Service Quality, 1988
After continuous improvement of SERVQUAL evaluation method, PZB in 1991 proposed amendments to the SERVQUAL method. In the original questionnaire, empathy and responsiveness these two dimensions contain negative questions, thus making reduce its reliability. In light of this situation, PZB changed the original questionnaire of SERVQUAL the negative questions all into positive questions, and increase the efficiency of the investigation, and it is also very easy for the data processing and analysis. At the same time, he amended a number of other query language and the tone. For example, PZB’s original definition of customer expectations is "what services should be" (Should), the tone of such a query could easily produce the mapping effect of experienced service to customer expectations, thus affecting the customers to make the right judgment on expectations. Therefore, during the amendment of SERVQUAL, PZB changed all "should" or "should be" by the words "** companies would or will provide" (Would, Will) words, which can solve the above problems.#p#分页标题#e#
On 1988, 1991, 1993 and 1994 researches basis, PZB again in 1994 again extended SERVQUAL evaluation method, changing questionnaire from the two columns into one column, two columns and three columns three types, then format three questionnaires.
2) SERVPERF model
Cronin & Taylor (1992) think that the gap between PZB’s model lacks empirical research, in order to overcome the deficiencies inherent in SERVQUAL, in 1992 they launched a "service quality and perception of the performance measurement method", that is, SERVPERF (Service Performance).
SERVPERF abandons the SERVQUAL’s different comparing method, but only uses a variable, that is, service performance to measure customer perceived quality of service. Cronin & Taylor scholars believe that the quality of service is a long-term mentality, and customer satisfaction is a short-term judgment on the basis of a specific service experience. Therefore, SERVPERF can directly measure the quality of service cognitive outcome; comparatively it can reflect various services long-term quality of customer service mentality.
After Empirical Comparison of SERVQUAL and SERVPERF Cronin & Taylor find out the following two:
①. Although the service expectations have specific impact on the consumers’ perceived quality of service, the implementation result’s perception of services subtracts service expectations, which can not be suitable for the measurement of the quality of service. The quality of services is directly impacted by the perception of services.
②. Consumer satisfaction has stronger impact than the quality of services on the purchase inclination.
According to PZB’s SERVQUAL method: Service quality= customer perceived service performance (Performance) －customer service expectations (Expectations), can be simply expressed as SQ = P－E; amendment SERVQUAL= each dimension’s the importance of quality of service (Importance) × [customer perceived service performance (Performance) －customer service expectations (Expectations)], simple as that SQ = I (P－E). But Cronin & Taylor in the course of the study found that at the same time to measure the expectation of customers and perceived performance is unscientific. They have put forward their own method SERVPERF, that is service quality = customer perceived performance, expressed as SQ=P or SQ = I×P. The result of using such method can be directly on behalf of customers’ perception of the quality.
SERVPERF as SERVQUAL’s inheritance and development, has a lot of overlap with SERVQUAL. First, SERVPERF inherits SERVQUAL’s service quality dimensions set and indicators. In the course of the SERVPERF study, still uses the SERVQUAL adopted five dimensions and 22 questions research mode, and all questions and tone have no change, at the same time, both explanations of definition of quality of services and the service quality dimensions are exactly the same. Even the proportions of positive and negative questions are the same (60% and 40% respectively).#p#分页标题#e#
However, in the process of measurement, SERVPERF does not involve weighted problem, in the application, it is simpler and more practical than SERVQUAL. In addition, as SERVPERF uses only one variable, this method-designed questionnaire contains 22, compared to the SERVQUAL it is more easily for actual operation.
In the course of the study, Cronin & Taylor used introduced analysis, T-test, the rate of variance test validity and the method test, etc. for these two kinds of evaluation methods of reliability and validity made some research, empirical studies show that both SERVPERF reliability or validity are indeed better than SERVQUAL. Besides, Grapentine & Terry (1998), as well as scholars in Taiwan, Su Yunhua (1997) use the same Empirical method and compare, they also support the SERVPERF is superior to SERVQUAL. Therefore, in this paper, the author uses SERVPERF as a study theoretical foundation, on this point in detail in Chapter III Section 1.
2.3 Internet bank
2.3.1 The concept of internet bank
Internet bank which can also be called online bank means that the financial and banking industries through use of computer networks, the Internet and wireless Internet create all kinds of new electronic, digital and network banks; or in the computer network, Internet and wireless Internet carry out traditional banking businesses and financial services; or in computer network, Internet and wireless Internet launch new e-banking financial businesses and services. In short, Internet banking is to makes use of computer networks, the Internet and wireless Internet to create virtual online financial and banking institutions, carrying out financial services and services of the bank. Internet bank has a new cooperation between bank with the customers, which is "3A": ANYWHERE, ANYTIME, ANYHOW to provide services for customers. It enables users getting rid of time restrictions, as long as they can access to the Internet, whether at home, office, or on the travel, they are able to manage their own assets and enjoy banking services conveniently.
Online banking is the product of financial electronic and information, and it is the organic integration of modern information technology and the banking business. Internet banking system is in accordance with "client-oriented! Management-oriented" to enhance banks’ financial management and service levels, expanding the bank's services and space fields, in addition to supporting the traditional banking business functions, while supporting Internet banking operations and the mobile office. Internet bank also offers integrated financial services, namely:
1). To provide the entire process automation for the operations of financial flows and information flows;
2). To provide and amend banks process management, real-time monitoring, risk indicators and dynamic warning system for the management of the operations;
3). To provide information for decision-making and intelligent expert system support; #p#分页标题#e#
4). Addition, the online banking system can also have a good maintenance and expansion capabilities that can optimize industry operation processes timely and add new types of business and financial instruments.
Compared with the traditional banking, Internet banking has the following several notable features:
1). Online banking updates banking business model and operating philosophy
Internet banking is based on the computer technology and communications technology, and it is the modern kind of bank whose content are financial services, through network, achieve operating scale global expansion, the expansion of the scale does not exist technical limitations, which provide preconditions for banks to create business models and ideas. At the same time, online banks can provide a more speedy and efficient services to win customers, realizing the nature change from passive service to active service, which would help the banking business models and concept innovation.
2). Lower operating costs
3). Free from the constraints of time and space to provide “3A” services
4). Virtual financial services institutions;
Internet Banking provides virtual financial products that make financial institutions no longer to need a large number of branches and business outlets.
5). Widen the scope of business
it can Provide "financial supermarket" (mixed operations for the background).
6). Concept of the banking business changes from the fund (account) as the center gradually become customer-centric.
7). Improve the management level
Internet banking at present has two major forms:
1) Network branch banks: network Bank branches are the integration result of banking and network information technology. Banks use the Internet as a new means of service, and set up bank websites to provide online services. Its Internet site can be regarded as one of its branches or business department, not only providing ancillary services to other non-branch, but also carrying out a separate business.
2) Pure Internet Banking: pure Internet banking is originated in the United States in 1995, the first network security Bank of U.S.A. Pure Internet banking can also be referred to as the bank "which has only one site" or "virtual banks." This bank generally has only one office address, no branches, no business outlets, almost all business through the Internet.
China's current online banking belong to the latter.
2.3.2 Development of internet bank
The survey of a global market research company GMI of the 18 countries for the 17,500 customers finds that at least half of the European banks have Internet banking business, in which the Netherlands, Germany and Denmark take the heads. China ranks the No. 13, 19% of the banks have Internet bank business, 86 per cent of the people aspire Internet banking to improve service quality.
From June 1996, the Bank of China established the first national online bank. During 11 years, China’s online bank develops and grows at an unprecedented pace, and in 2007, it meets a further development peak. In the first chapter section I the author mentions according to the consulting firm IResearch, "2006 China Internet banking research report" shows that as of August 2006, China's online bank users reach 26.92 million, Internet banking business account for gradually 20% of bank business. In 2006 Internet banking transactions increase by 103.2% over last year. This shows that Internet banking prospect is very optimistic and potential.#p#分页标题#e#
2.3.3 Foreign Internet banking service quality model development
In 2003, Dimitriadis and Gounaris first attempt to research electronic banking’s quality of service. They define the three quality dimensions based on the SERVQUAI Model: customer care and risk reduction benefit, information benefit, as well as the interaction facilitation. But the study lack of scientific, because these dimensions have to only rely on 14 indicators to reflect, they obviously can not covered all relevant factors of e-banking portal in the operational activities, for example, additional products and services Variety width, and the reliability of service delivery, and so on. Therefore, the model is contrary to the concept that takes portal as the overall business.
The following studies focus on the most traditional and simple bank transfer sites’ specific services, and thus focus on service quality dimensions research. Jun and Cai adopt the key events method to define the 532 online banking key events, which are classified as three types of core services quality: customer service quality, the online system quality, and banking service products quality.
Broderick and Vachirapornpuk (2002) through the participation in a community do a customary usage pattern tracking on online banking of customers, which last three months. They select involving the five most popular topics of 160 indicators to analyze. The results show that the most rapid impact on service evaluation is the clue information of service settings, the core incidents involved in service transactions, as well as the standard and nature embodied when customers participate. However, the survey results reflect only the overall level, but can not accurately measure the quality of Internet banking service.
Jayawardlhena (2004) modifies the SERVQUAL to make it also apply to the network environment, and creates 21 items to evaluate the quality of services for electronic banking. By detecting factor analysis (EFA) and confirmatory factor analysis (CFA), they are compressed into five major dimensions of quality: accessibility, web site interface, the trust, attention and credibility. Although the overall quality of service in 59% of the change can use this model to explain, but overlooks the customers’ emotional response in service process.
Considering that online banking portal is to the overall business model, the evaluation model mentioned above are one-sidedness and they all need to be integrated and expanded to cover all postal quality’s all relevant dimensions. In 2005, Hans H. Bauer, Maik Hammerschmidt and Tomas Falk put forward a more comprehensive evaluation model. They believe that the concept of three-dimensional service still applies to the network portal. These three types of portal services are: core services, the additional service and solution services. These three types’ quality evaluation commonly constitutes the basis of Web portal quality evaluation model. Such classification’s base is the quality of service’s multi-attribute concept; it believes that the quality of service evaluation and the transaction elements and steps have close relationship (Oliver, 1997; Olsen and Johnson, 2003; Farasuraman, 1988). This evaluation method can capture customers’ complexity psychological reaction (Olsen and Johnson, 2003). And many times evaluation will be able to measure the quality of the customer's satisfaction. (Anderson and Lehmann, 1994). More importantly, the multi-attribute service evaluation will enable managers to better monitor and improve their service behaviors. Based on the above theory, the quality of portal is defined as the perceived quality of these three basic service provided for postal. On Internet banks, the meanings of these three categories of service are as follows:#p#分页标题#e#
The first category of core service refers to these that meet the basic needs of the related services with traditional banking products, such as payment transactions (cash management, transfers, detailed enquiries, pay bills) or intermediate businesses. And also include technical indicators, such as the summary degree of use, the speed of data transmission, clear coordination of the web site design and navigation functions of the core services. At the same time, security means of payment, retrieval mechanisms, trading backup are also seen as part of the core services. Overall, the core products of online banking only account for a very small rate of online banking, they can reflect the reliability of service providers. In the competitive market environment, the similarity of each internet banks’ core service has a high degree.
The second category additional services of postal is required by customers clearly, including the possibility of online access to loans, and the variety of options of financial products such as funds and insurance. Through the provision of high credibility and popular brands of financial products, online banks transfer these brands’ good image to themselves as a consolidation and deepening of the credibility of the Internet and loyalty. At the same time, the design of the website, which is good for user-friendly to browser and experience the fun and entertainment of the challenges also belongs to additional services areas. Many investigations reveal that the feel-good elements in the evaluation of highly professional, information-based Web site services play an important role, and such services are important components of the online bank.
The third category of solution services are the highest level of postal services, which reflect online banks’ response to customers’ problems and provide high quality of the transaction process. Responsiveness can be manifested according to customers’ needs to order Web sites’ products, services and related functions, which improve customers’ participation in the process of service transactions. Such services also include availability and usability to ensure the functions of portal, and the calculation of online interactive tools and decision support tools. At the same time, online communities (chat or news) that promote exchanges between customers to the way of social capital (available online recommendations, the exchange of experiences among members of the community) to create the reliable resources for users. These areas are the important prerequisites to ensure that banks and their customers have good relations, and enhance the long-term interests of the customers. Particularly in the virtual environment, the establishment of a high-quality bank customer relationship is an effective way to improve customer expectations and. Moreover, the improvement of customer expectations will bring about the upgrading of customer satisfaction, therefore, the service elements aimed at the establishment of relations between the two sides can help improve the competitiveness of the online banking.#p#分页标题#e#
Overall, the use of an Internet banking portal site can be understood as the use of the above services include components related to the complex processes of the various processes. Therefore, we can assume that customers evaluate the above three categories of on the quality of the services respectively. A customer may think that the bank's navigation system and search engines have a high degree of availability, but the he or she may not satisfied with the service and recommend systems. Based on the concepts of these three categories of services, Hans and others define the three basic dimensions of quality of Internet banking portal, each dimension quality can be obtained from a series of quality indicators.
Hans and others through interviewing the banks and e-commerce consulting firm expert, and discuss deeply with online bank users, getting the initial model including 110 indicators. Then they use it in the form of a questionnaire to 20 users online survey and streamline it to 80 indicators. They put this questionnaire including 80 questions by the way of the electronic questionnaire to the German online banking users large-scale, and recovery 280 questionnaires available for data analysis.
They use a number of factor analysis andcollege essayhttp://www.ukthesis.org/Thesis_Tipsreliability and validity tests continue to streamline indicators to 61. Theses 61 indicators are classified as six basic quality dimensions: security and trust, basic services quality, cross-buying services quality, added values, transaction support, responsiveness. The six dimensions are attributable to the three types of services: core services, the additional services and problem-solving services.
E-banking portal quality
Sources: Hans H.Bauer, Maik Hammerschmidt and Tomas Falk (2005)
This model’s indicators coverage is comprehensive, and passes the empirical test, evaluation results show the accuracy. Thus, the current model is more advanced and complete, and can give references for domestic Internet banking service quality evaluation.
