Abstract:
In Sri Lanka banking industry, application of self-service technology is growing rapidly
with the advent of new technology. Self-service technologies deliver services via ATM,
SMS banking, Internet banking, and Telephone banking facilities. Banks seek to
improve the range of self-service facilities in order to attract customers to avail banking
services and also they need to give high attention to customer loyalty factors due to the
high competition within banking industry. The aim of this study is to explore the quality
of self-service technology and its effect on customer satisfaction and customer loyalty.
An empirical gap has been observed regarding the quality of self-service technologies
on customer loyalty in the banking sector. Based on the literature review, the most
frequently used dimensions were chosen for this study namely; reliability, security,
efficiency, ease of use, convenience and those date collected through a structured
questionnaire. This study surveyed 300 customers from six dominating commercial
banks located in Batticaloa. The collected data were analyzed using descriptive
statistics, correlation and regression analysis in order to find the results of study
objectives. Based on the results of the study, it concludes that both banking self-service
technology quality and customer satisfaction are at high level among selected bank
customers. But the customer loyalty is at moderate level. The result also revealed that
there is strong positive relationship between self-service technology quality, customer
satisfaction and customer loyalty. Self-service technology quality has an impact on
customer loyalty and customer satisfaction mediates the partial relationship between
self-service technology quality and customer loyalty. Moreover, results indicated all
the dimensions have positively impact on customer loyalty. On the other hand,
customer loyalty was largely influenced by the predictors of ease of use, efficiency, and
security
