Banks use of the World Wide Web to strengthen customer relations | |
| Author | Siriluck Rotchanakitumnuai |
| Call Number | AIT Diss. no.SM-04-02 |
| Subject(s) | Customer relations Banks and banking--Customer services Internet banking |
| Note | A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy. |
| Publisher | Asian Institute of Technology |
| Series Statement | Dissertation ; no. SM-04-02 |
| Abstract | The banking sector has been an interesting case for service innovation as it moves toward using the web for commercial purposes through Internet banking. The success of Thai Internet banking will rely at least partly on corporate customer acceptance of its value. However, many Thai corporate customers are not highly enthusiastic about Internet banking. An understanding of how corporate customers view Internet banking in the broader context of their relationship with their bank can assist banks to implement this self-service technology more efficiently. This research examines factors that influence corporate customers perceptions toward Thai Internet banking service providers, aiming to gain a better understanding of how the web-based service delivery channel will influence the overall strength of customer relationships, switching costs, and customer loyalty to the bank. The issues are related to the perceived benefits and barriers of Internet banking among users and non-users customers. The literature review and preliminary pilot work with corporate customers of Thai banks indicate that higher levels of web benefits lead to stronger customer relationships. The survey results supported the pilot work, showing that the more positive the perceptions of corporate customers toward web benefits, the greater the strength of the customer relationships. Information accessibility, transaction benefit, and information quality are the major web benefits perceived by corporate customers, whereas the information sharing benefit does not seem to be an important web benefit to strengthen customer relationships with the bank. Web barriers have no impact on customer relationships. The survey results from corporate customers reveal that the web benefits of information accessibility and information quality have negative impact on switching cost. This is quite different from some prior studies which mentioned that the value of info1mation technology creates higher switching cost, but it is consistent with some work arguing that commoditization of information on the Internet would lower switching cost. However, the strength of the customer relationship has a positive impact on switching cost, as in the literature. Further, switching cost and strength of customer relationship both have positive impacts on customer loyalty. Finally, this study examines the benefit factors that influence corporate customer adoption. Information quality and transaction benefit factors are more important than other benefit factors in discriminating Internet banking users from non-users. Information sharing and trust of the web system have stronger negative impact on Internet banking adoption. While some of the literature argues that info1mation sharing benefit should encourage adoption, the very strong tradition of business secrecy in Asia probably makes this "benefit" unattractive to Asian corporate customers. While benefits do enhance relationships, the impact is not large. Hence, Thai Internet banking service providers need to integrate web-based service in bank business strategy as a way to supplement and enhance the relationships. The Internet cannot replace them. Thai banks must be careful in implementing Internet banking because it can lower switching cost. Finally, Thai banks need to overcome the major barriers, which is the key to obtaining more Internet banking customers. |
| Year | 2004 |
| Corresponding Series Added Entry | Asian Institute of Technology. Dissertation ; no. SM-04-02 |
| Type | Dissertation |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Speece, Mark; |
| Examination Committee(s) | Igel, Barbara; Vatcharaporn Esichaikul |
| Scholarship Donor(s) | Faculty of Commerce and Accountancy Thammasat University |
| Degree | Thesis (Ph.D.) - Asian Institute of Technology, 2004 |