Comparative Study of Service Quality on VIP Customer Satisfaction in Internet Banking: South Korea Case

Abstract

For Internet banking to compete effectively with traditional brick-and-mortar banking, managers must identify the key determinants of customer satisfaction. While many studies exist on Internet banking, and there is a large base of marketing literature on customers' perceptions of luxury products, research on the service quality of luxury brands in Internet banking is scarce. Our study investigates service quality that exert influence on customer satisfaction with Internet banking most, along with the moderating role of customer type on the relation between service quality and customer satisfaction. The moderation analysis in our study is the test of difference between general customers and VIP customers which are created according to customer type. Using a web survey of 645 general and VIP (very important person) customers who use Internet banking systems, we examined the effects of fix factors that have an influence on service quality: usefulness, ease of use, and system security, reliability, responsiveness, and empathy. In the full sample, all factors that affect Internet banking quality also affected customer satisfaction significantly. Usefulness, ease of use, and system trust, responsiveness, and empathy are more important in VIP customer satisfaction than in that of general customers, while system security is a more important factor for general than for VIP customers. Our study results indicate that general and VIP customers differently perceive service quality that are relevant to customer satisfaction.