The Mediating Effect of E-Satisfaction on E-Loyalty: A Study of Internet Banking Customers in China

Abstract

The rapid advancement of internet banking in China has presented notable challenges and opportunities for enhancing customer loyalty, which is of paramount importance for the banking industry to thrive in the digital era. Banks that offer high-quality customer experiences can boost customer loyalty by providing perceived value, thereby ensuring customer satisfaction and subsequently enhancing loyalty. The primary objective of this study is to assess the mediating effect of e-Satisfaction on the influence of factors such as privacy, security, and website quality on e-Loyalty among Chinese internet banking customers. This research adopts relationship marketing theory, utilizes a total of 413 datasets from China, and evaluates its empirical validity through the structural equation model (SEM-PLS) using SMART PLS software. The findings encompass the direct effect of e-Satisfaction on e-Loyalty and the mediating role of e-Satisfaction between factors like privacy and website quality on e-Loyalty, while security has no significant effect. Consequently, it is essential for internet banking providers and policymakers to gain valuable insights and understanding to effectively manage the e-Loyalty of internet banking users. The probability of customers maintaining their usage of services or products rather than switching to competitors is higher when they experience satisfaction. Furthermore, fostering customer loyalty can generate favorable word-of-mouth recommendations from existing users, which in turn may attract new customers.