Factors Affecting Customer Retention Toward Internet Banking in Malaysia

Hishamuddin Bin Ismail () and Mohammad Fateh Ali Khan Panni ()
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Hishamuddin Bin Ismail: Faculty of Business and Law (FBL), Multimedia University (MMU), Jalan Ayer Keroh Lama, 75450 Bukit Beruang, Melaka, Malaysia
Mohammad Fateh Ali Khan Panni: City University, Dhaka-1213, Bangladesh

Journal of Information & Knowledge Management (JIKM), 2009, vol. 08, issue 01, 35-43

Abstract: Information and communication technology (ICT) is not a strange medium anymore in business operation nowadays. Most businesses regardless of their industries try to equip themselves with the development of ICT. Polatoglu and Ekin (2001) viewed Internet banking as very attractive to banks and to consumers who have higher acceptance of new technology. The purpose of the study is to find out the extent of the effect of the customer demographics on the online customer retention of the internet banking services; the extent of the influence of the characteristics of innovation on customer retention of internet banking services. The study revealed that the demographic variables do not have any significant impact on the customer retention of the internet banking services. However, the study found that all the innovative characteristics like relative advantages, compatibility, trialability, observability and complexity are found to have significant association with the customer retention of internet banking services.

Keywords: Internet banking service; service standard; online banking; Rogers diffusion model; customer retention (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (1)

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DOI: 10.1142/S021964920900218X

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