Structural Equation Modeling Approach to Understand Mediating Impact of Customer Satisfaction (SAT) on ESQ-Bi Linkage: A Study of Internet Banking

Navjit Singh ., Dr. Ramandeep Kaur Chahal .


In the modern competitive environment, the quest of customer’s satisfaction hugely depends on the firms overall service quality (SQ) and is considered to be an essential strategy. The e-banking or any other service providers deliver e-service quality through the website. The e-service quality in the e-banking creates value for the customer where customer receive perceived value from their expectation which impacts their attitude toward the service provider positively which in turns leads to positive WOM, repeat purchase and ultimately consumer loyalty. Satisfied customers are the ambassador for an enterprise because their satisfaction can influence word of mouth effect for that particular enterprise which ultimately brings more customers for the company. In the field of mobile services, research studies show that customer satisfaction has positive effects on the intention to continue the service. The current study tested a model linking ESQ-SAT-BI to understand the mediating impact of Customer Satisfaction through an empirical investigation based on the customers perceptions toward Internet Banking. The results of the data analysis through AMOS confirmed the proposition that customer Behavioral Intentions toward Internet Banking are mediated through Satisfaction perceived from the electronic quality of net banking portal used to access the Online services of the Banks. A structural model was presented as the outcome of the study.


Electronic Service Quality (ESQ), Satisfaction, Behavioral Intentions, Mediation, Internet Banking, SEM, AMOS

Full Text:



Anderson, J.C., Gerbing, D.W. (1988). Structural Equation Modeling in Practice: A Review & Recommended two step approach, Psychological Bulletin, Vol. 103 No. 3

Arambewela, R., & Hall, J. (2006). A comparative analysis of international education satisfaction using servqual, Journal of Services Research, 6, 141-163.

Bagozzi, P.R. & Yi., Y. (1988). On the evaluation of Structural Models, Journal of Academy of Marketing Science, Vol. 16 No. 1

Barnes, S.J., & Vidgen, R. (2001). An evaluation of cyber-bookshops: the WebQual method, International Journal of Electronic Commerce, 6 (1), 11-30.

Bauer, H.H., Falk, T. & Mammerschmidt, M. (2006). eTransQual: a transaction process-based approach for capturing service quality in online shopping, Journal of Business Research, 59, 866-75.

Carlson, J & O‟Cass, A. (2010). Exploring the relationships between e-service quality, satisfaction, attitudes, and behaviors in content-driven e-service web sites, Journal of Services Marketing, 24 (2), 112-127.

Caruana, A. (2002). Service Loyalty: The effects of service quality & mediating role of customer Satisafction, European Journal of Marketing, Vol. 36 No. 7/8, pp. 811-828.

Chang, H. H., Wang, Y. H., & Yang, W. Y. (2009). The impact of e-service quality, customer satisfaction, and loyalty on e-marketing: Moderating effect of perceived value, Total Quality Management and Business Excellence, 20 (4), 423-443.

Chang, H.H., & Wang, H. (2010). The moderating effect of customer perceived value on online shopping behavior. 35 (3), 333-359.

Chen, C.F (2008). Investigating structural relationships between service quality, perceived value, satisfaction, and behavioural intentions for air passengers: Evidence from Taiwan, Transportation Research, 42(2008), pp. 709-717.

Chen, Z., & Dubinsky, A. J. (2003). A conceptual model of perceived customer value in E commerce: A preliminary investigation, Psychology and Marketing, 20 (4).

Collier, J., & Bienstock. C. (2009). Model of E-Service Quality, Journal of Marketing Theory and Practice, 17 (3), 283-293.

Dichter, E. (1966). How word-of-mouth advertising works, Harvard Business Review, Vol. 44,

Edvardsson, B., Johnson, M.D., Gustafsson, A. and Strandvik, T. (2000). The effects of satisfaction and loyalty on profits and growth: products versus services, Total Quality Management, Vol. 11, pp. 917-27.

Flavia´n, C., Guinalı´u, M. and Gurrea, R. (2006). The role played by perceived usability, satisfaction and consumer trust on website loyalty, Information & Management. The International Journal of Information Systems Applications, Vol. 43 No. 1, pp. 1-14.

Gummerus, J., Liljander, V., Pura, M., & Riel, A. (2004). Customer loyalty to content-based web sites: the case of an online health-care service, Journal of service marketing, 18 (3), 175-186.

Gundersen, M. G., Heide, M., & Olsson, U. H. (1996). Hotel Guest satisfaction among Business Travellers: What Are the Important Factors? The Cornell Hotel and Restaurant Administration Quarterly, 37(2), 72-81.

Hansemark, O. C., & Albinson, M., (2004). Customer Satisfaction and Retention: The Experiences of Individual Employees, Managing Service Quality, 14 (1), 40-57.

Hatcher, Larry (1994). A Step-by-Step Approach to Using the SAS System for Factor Analysis

Kumar, V., Smart, P. A., Maddern, H., & Maull, R. S.(2008). Alternative Perspective on Service Quality and Customer Satisfaction: the Role of BPM, International Journal of Service Industry Management, 19(2).

Lee, G. & H. Lin, (2005). Customer Perceptions of E-Service Quality in Online Shopping, International Journal of Retail and Distribution Management, 33 (2), 161-176.

Madu, A.A. (2002). Dimension of e-quality. International Journal of Quality and Reliability Management, 19 (3), pp.246-58.

Oliver, R. L. (1993). A conceptual model of service quality and service satisfaction: Compatible goals, different concepts, Advances in services marketing and management, Greenwich, C.T.: JAI Press.

Parasuraman A., Zeithmal, V.A., & Malhotra, A. (2005). E-S-Qual A multiple item scale for assessing Electronic Service Quality, Journal of Service Research, Vol. 7 No. X, 1-21.

Parasuraman, A, Zeithaml, and Leonard L. Berry (1988). SERVQUAL: A Multiple-Item Scale for Measuring Consumer Perceptions of Service Quality. Journal of Retailing 64 (Spring): 12-37.

Parasuraman, A. & Grewal, D. (2000). The impact of technology on the quality-value-loyalty chain: A research agenda, Journal of Academy of Marketing Science, Vol. 28 No. 1, pp. 168-174.

Sahadev, S. & Purani. K, (2008). Modeling the consequences of e-service quality, Marketing Intelligence and Planning, 26 (6), 605-620.

Santos, J. (2003). E-service quality: a model of virtual service quality dimensions, Managing Service Quality, 13(3): 233-246.

Srinivasan, S.S., Anderson, R. & Ponnavolu, K. (2002). Customer Loyalty in e-commerce: An exploration of its antecedents & consequents, Journal of Retailing, 78(2002), pp. 41-50.

Van Riel. A.C.R, Liljander, V., & Jurriens. P. (2001). Exploring consumer evaluations of e services: A portal site, International journal of service industry management, 12 (4), 359-377.

Wai-Ching Poon. (2008). Users’ adoption of e-banking services: The Malaysian perspective, Journal of Business and Industrial Marketing, 23(1).

Wei, C. C., & Ramalu, S. S. (2011). Students Satisfaction towards the University: Does Service Quality Matters, .International Journal of Education, 3(2), 15

Wolfinbarger, M. & Gilly, M.C. (2003). eTailQ: Dimensionalizing, Measuring & Predicting e-tail Quality, Journal of Retailing, 79 (2003) 183-198.

Wolfinbarger, M., & Gilly, M.C. (2002). comQ: Dimentionalizing, Measuring and Predicting Quality of the E-tail Experience. Working Paper No. 02-100, April, Marketing Science Institute, Cambridge, MA.

Wu. K.W., (2011). Customer loyalty explained by electronic recovery service quality: Implications of the customer relationship re-establishment for consumer electronics e-retailers, Contemporary management research, 7 (1), 21-44.

Yoo, B & Donthu, N. (2001). Developing a scale to measure the perceived quality of an Internet Shopping Site (SITEQUAL), Quarterly Journal of Electronic Commerce, 2(1), 31-47.

Zeithaml, V.A., Parasuraman, A., & Malhotra, A. (2000). e-Service Quality: Definition, Dimensions and Conceptual Model, Working Paper. Marketing Science Institute. Cambridge, M.A.

Zeithmal, V., Parasuraman, A. & Malhotra, A. (2002). Service Quality Delivery Through Websites: A critical review of Extant Knowledge, Journal of Academy of Marketing Science, Vol. 30 No. 4.

Zhang, X., Prybutok, V. & Huang, A. (2006). An empirical study of factors affecting e-service satisfaction, Human Systems Management, 25 (2006), pp. 279-291.


  • There are currently no refbacks.

Editorial Office:

Educational Research Multimedia & Publications,
S.N. 21, Plot No 24, Mirza Ghalib Road Malegaon Nasik,
Maharashtra India - 423203.
+919764558895 (whatsapp),,

Copyrights © 2010-2020 - ERM Publications, India     

This work is licensed under