The impact of E-banking service quality, particularly Empathy on Customer purchase intention with mediating effect of Customer satisfaction

Abstract

The banking industry in the 21st century is undergoing significant transformations because of the constant growth of information technology, leading to the appearance of adaptable algorithms. This research concentrates on the impact of empathy on customer purchase intention, with customer satisfaction acting as a mediating factor. As e-banking services enable faster and more reliable transactions than traditional banking methods, banks increasingly leverage digitalization, the Internet, and mobile phone technology to offer more straightforward and efficient banking services. Considering the advantage of e-banking, the adoption rate remains low, especially in developing nations with low internet penetration rates. To improve adoption rates, banks must enhance the instability, efficiency, and allure of their offerings on the Internet. This study examines the main element influencing buyer decisions to use e-banking and proposes a broad theoretical framework to predict their actions. The research objectives include examining the effects of empathy, reliability, and responsiveness on customer purchase intention and their impact on customer satisfaction. Additionally, the study examines the mediating function of satisfaction with the product between these factors and consumer intent to buy. Research design involves a descriptive approach, with data collected through surveys using a 7-point Likert scale. The sample size comprises 150 bank customers selected through convenience sampling. The findings reveal strong positive correlations between empathy, reliability, responsiveness, customer satisfaction, and purchase intention. Factors like age, gender, and education also influence these relationships. Statistical analysis shows that empathy hurts customer purchase intention, while reliability has beneficial benefits, including attentiveness and satisfaction with clients. To conclude, e-banking is reshaping the banking sector, and customer satisfaction is crucial in mediating the relationship between empathy and buyer purchase intention. Improving the quality of e-banking services and focusing on buyer satisfaction can help banks attract and retain customers in the digital era.