earticle

영어

Banks in Uganda are utilizing the increasing popularity of the internet in an effort to keep up with the changing technological preferences of their customers through innovations like internet banking. But in order to offer better internet banking services, it is necessary to investigate what existing and potential customers expect for service quality as it has been regarded as one of the few means for service differentiation and competitive advantage which maintains and attracts new customers. This study focuses on service quality and examines its impact on customer retention in the internet banking context. Statistical analysis using structural equation modeling indicates that perceived service quality of internet banking significantly influences individual beliefs that internet banking is easy to use. This leads one to believe that it is also useful if used, consequently influencing significant individual feelings about internet banking and their behavioral intention to use it. The relative importance of customers’ behavioral intention was also statistically significant but with a low variance of 1% in predicting customer retention which can be justified by the still relatively expensive retail pricing of broadband services.