E-S-QUAL dimensions of internet banking and customer satisfaction in the Nepalese banking sector: do they vary across demographic groups?

Abstract

Purpose: This study examines the extent to which E-S-QUAL dimensions (efficiency, system availability, fulfilment, and privacy) affect customer satisfaction with internet banking in Nepal. It also aims to investigate whether customer perceptions on these dimensions and satisfaction differ significantly based on gender and marital status.

Methodology: This study adopted a quantitative, causal-comparative research design. A convenience sampling technique was adopted to collect data from 398 respondents. Multiple regression analysis assessed the impact of E-S-QUAL dimensions on customer satisfaction. An independent samples t-test compared male vs female, and married vs unmarried respondents.

Findings: All four dimensions of E-S-QUAL (efficiency, system availability, fulfilment, and privacy) affect customer satisfaction with internet banking in Nepal. Out of total variance in customer satisfaction, 48.1% is collectively explained by these dimensions (Adj. R² = 0.481, F = 92.881, p < .001). Privacy had the strongest effect on customer satisfaction among the e-service quality dimensions (β=0.368; t=7.612, p =0.000) followed by system availability, efficiency, and fulfilment. Gender revealed no significant differences in any of the service quality dimensions or customer satisfaction. Marital status produced only one significant difference, indicating that unmarried users perceive slightly higher efficiency than married users. The differences were insignificant for all other service quality dimensions and customer satisfaction.

Practical Implications: Internet banking providers in Nepal should consider all E-S-QUAL dimensions collectively, with particular attention to privacy, as it has the strongest effect on customer satisfaction. Uniform service quality can be applied across gender and marital status segments, given that demographic differences were minimal.

Originality/value: This study extends E-S-QUAL research to the Nepalese banking context and demonstrates that privacy is the strongest driver of customer satisfaction. Gender and marital status have little practical relevance for service quality segmentation.