xi
TABLE OF CONTENTS
CHAPTER
1
TITLE
PAGE
DECLARATION
ii
DEDICATION
iii
ACKNOWLEDGEMENT
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xii
LIST OF FIGURES
xv
LIST OF ABBREVIATIONS
xvi
LIST OF APPENDICES
xvii
INTRODUCTION
1
1.1
Background of Research
1
1.1.1
3
Internet Banking in Iran
1.2
Statement of the Problem
6
1.3
Research Aim
10
1.4
Research Objectives
10
1.5
Research Questions
11
1.6
Scope of the Research
12
xii
2
1.7
Contribution of the Study
13
1.8
Definition of key Terms
16
1.9
Outline of the Thesis
18
LITERATURE REVIEW
20
2.1
Introduction
20
2.2
Customer Loyalty
21
2.2.1
Defining Loyalty
22
2.2.2
Measuring Loyalty: the antecedents
27
2.2.3
Theories behind Loyalty
32
2.3
RBV Research on Marketing
40
2.3.1
Resource Based View (RBV) Theory
40
2.3.2
Marketing Capability
42
2.3.3
Conceptualizing Marketing Capabilities’ 53
outcome in Loyalty Literature
2.4
Linking Marketing Capabilities to Firm Performance 56
2.4.1
Nonfinancial Performance
2.4.1.1
2.5
59
Customer Satisfaction
61
Hypotheses Development
2.5.1
64
Hypotheses of Marketing Capabilities’
Outcome
2.5.1.1
65
Customer
Linking
to
Customer
Satisfaction and Loyalty
2.5.1.2
Brand
Position
to
65
Customer
Satisfaction and Loyalty
2.5.1.3
New
Service
Development
67
to 70
Customer Satisfaction and Loyalty
2.5.2
Moderating Influences
73
2.5.2.1
Online Trust
77
2.5.2.2
Internet Perceived Risk
79
2.5.2.3
Website Knowledge
81
xiii
2.5.3
3
Satisfaction to Loyalty
83
METHODOLOGY
88
3.1
Introduction
88
3.2
Research Design
88
3.3
Method of the study
89
3.3.1
Research Paradigm
90
3.3.2
Quantitative Study
91
3.3.3
Survey Approach
94
3.4
3.5
Sampling Frame
94
3.4.1
Target Population
95
3.4.2
Accessible Population
95
3.4.3
Sample Size
95
3.4.4
Sampling Procedure
96
Questionnaire Development
3.5.1
Specifying valid items and operational
definitions
100
a
Independent Variables
101
b
Dependent Variables
103
c
Moderator Variables
105
d
Control Variables
108
3.5.2
Pre-test and pilot- test of English
Version
110
I
Pre-test
110
II
Pilot test
111
3.5.3
Translate to Persian
3.5.4
Pre-test and Pilot-test of Persian
Version
3.6
98
112
113
i
Pre-test of Persian Version
113
ii
Pilot test of Persian Version
114
Data Collection Process
115
xiv
3.7
Ethical Consideration
119
3.8
Data Analysis Method
119
3.8.1
Data
Examination
and
Descriptive 120
Statistics
3.8.2
Pre-analysis
120
3.8.3
Testing measurement model
121
3.8.4
Testing Structural Model Using Partial
least squares (PLS) analyses
3.9
4
Summary
121
122
DATA ANALYSIS
123
4.1
Introduction
123
4.2
Section One: Data Screening
124
4.2.1
Missing Data
124
4.2.2
Outliers
125
4.2.3
Normality
125
4.3
4.4
4.5
Section Two: Respondents’ Background
126
4.3.1
128
Descriptive Statistic of Variables
Section three: Pre-Analysis on Possible Biases
and Multicollinearity
130
4.4.1
Non-Response Bias
130
4.4.2
Common Method Bias
132
4.4.3
Method Bias
133
4.4.4
Multicollinearity
135
Testing Measurement Model
4.5.1
137
Factorial Validity Assessment Using
4.5.2
EFA/PCA
137
Convergent and Discriminant Validity
142
4.5.2.1
Convergent Validity
142
i
Item loadings
142
ii
Average Variance Extracted
145
xv
4.5.2.2
4.5.3
4.6
Discriminant Validity
146
a
Square Root of AVE
146
b
Cross-Loading
147
Construct Reliability
147
Hypotheses Testing Using PLS
148
4.6.1
149
Testing the Structural Model
4.6.1.1
Results of the main relationships
analysis
4.6.1.2
150
Results of the moderating effects
analysis
4.7
5
152
Testing Control variables
156
4.7.1
Gender
157
4.7.2
Age
159
4.7.3
Education
161
4.7.4
Occupation
163
4.7.5
Type of Banks
166
DISCUSSION
168
5.1
Introduction
168
5.2
Discussion
on
the
Research
Question
and
Hypotheses
169
5.3
Summary of the Findings
181
5.4
Theoretical Contribution
182
5.5
Practical contribution
184
5.6
Research Limitations
186
5.7
Future Research
188
5.10
Conclusion
189
REFERENCES
Appendices A-I
191
209-229
xvi
LIST OF TABLES
TABLE NO.
TITLE
PAGE
1.1
The Chronology of Internet banking Services in Iran
5
2.1
Independent Variables in Loyalty Studies from Previous Literature
27
2.2
Previous Theory based Studies on Loyalty
36
2.3
Previous Studies of Marketing Capability
46
2.4
Common Capability Constructs Based on Literature
50
2.5
Proposed Marketing Capabilities Derived from Satisfaction and 55
Loyalty Predictors
2.6
Moderating Factors Used in Satisfaction and Loyalty Literature
75
2.7
Customer Satisfaction in E-loyalty Context
84
2.8
Research Hypotheses
86
3.1
The characteristic of quantitative method in different criteria
92
3.2
Demographic profile of Iranian Internet users
98
3.3
Elements of the Research Instrument (Questionnaire)
100
3.4
Items of the Customer-Linking Scale
102
3.5
Items of the Brand Position Scale
102
3.6
Items of the new service development scale
103
3.7
Items of the Customer Loyalty Scale
104
3.8
Items of the Customer Satisfaction Scale
105
3.9
Items of the Online Trust Scale
106
3.10
Items of the Internet Perceived Risk Scale
107
xvii
3.11
Items of the Website Knowledge Scale
107
3.12
Items of the Control Variables
109
3.13
English Pre-test Finding
111
3.14
Cronbach's Alpha Values of the Study’s Constructs
114
3.15
Stages of Pre-test, Pilot test and Translation Process
115
3.16
the Usage Pages for Data Collection
117
4.1
Frequency table of respondents’ profile
127
4.2
Descriptive statistic of main and moderating variables and t-test
128
4.3
Descriptive statistic of items
129
4.4
Chi-Square comparison of early and late cases (Nominal variables)
131
4.5
Chi-Square comparison of early and late cases (Ordinal variables)
132
4.6
Chi-Square comparison of web-based and email questionnaires of 134
data collection (Nominal variables)
4.7
Chi-Square comparison of web and email questionnaire methods of 134
data collection (Ordinal variables)
4.8
Intercorrelations between independent constructs
136
4.9
VIF test of Multicollinearity
136
4.10
KMO Index
138
4.11
Factor structure matrix of loadings and cross-loadings
138
4.12
Factor structure matrix of loadings and cross-loadings
140
4.13
Psychometric characteristics of the research constructs
143
4.14
Psychometric characteristics of the research constructs
144
4.15
AVE and CR of the constructs
146
4.16
Correlations between the main variables
147
4.17
Composite Reliability Values
148
4.18
Supported Hypothesis, Path Coefficients and T-Statistics
151
4.19
Summary of Hypothesis Testing Results for Moderators
155
4.20
Descriptive statistics of gender
158
4.21
Levene’s F test for homogeneity of variance
158
4.22
Result of T-test analysis for gender (Equal-variance variables)
159
4.23
Descriptive statistics of age
160
4.24
Levene’s F test for homogeneity of variance
160
4.25
Result of T-test analysis for age (Equal-variance variables)
161
xviii
4.26
Descriptive statistics of education
162
4.27
Levene’s F test for homogeneity of variance
162
4.28
Result of ANOVA analysis for education (Equal-variance variables)
163
4.29
Descriptive Statistics of Occupation
164
4.30
Levene’s F test for homogeneity of variance
165
4.31
Result of ANOVA analysis for occupation (Equal-variance variable) 165
4.32
Descriptive statistics of occupation
166
4.33
Levene’s F test for homogeneity of variance
166
4.34
Result of T-test analysis for banks’ type (Equal-variance variable)
167
4.35
Result of T-test analysis for banks’ type (Non-equal-variance
5. 1
variable)
167
Summary of the Research Questions and Findings
181
xix
LIST OF FIGURES
FIGURES
TITLE
PAGE
NO.
2.1
Concepts of loyalty
23
2.2
Stages of attitude loyalty
25
2.3
A means-end chain hierarchy
34
2.4
Organizational Capabilities
42
2.5
Marketing Capabilities and Their Outcomes
53
2.6
Barney’s (1991) conceptual model
57
2.7
Nonfinancial performance in this study
64
2.8
An initial proposed research model
73
2.9
Research Model
86
3.1
The Process of Research Methodology
89
3.2
the Snowball Sampling Technique
97
3.3
The stage of questionnaire development
99
4.1
Modified research model
138
4.2
Second Modified Research Model
145
4.3
Final research model (path coefficients and R2)
150
4.4
Result of PLS analysis for main structural model
151
4.5
Research model including moderators
153
4.6
Interaction effect
153
4.7
Full interaction effects of the research model
154
xx
4.8
Result of PLS analysis for research model including moderators 154
(path coefficients and R2)
xxi
LIST OF ABBREVIATIONS
APACS
-
UK Payment Association
ATM
-
Automated Teller Machines
SATNA
-
Real Time Gross Settlement System
TRA
-
Theory of Reasoned Action
TAM
-
Technology Acceptance Model
RBV
-
Resource-Based View
EDT
-
Expectancy Disconfirmation Theory
IS
-
Information System
SEM
-
Structural Equitation Modeling
PLS
-
Partial Least Squares
AVE
-
Average Variance Extracted
CMB
-
Common Method Bias
EFA
-
Exploratory Factor Analysis
VIF
-
Variance of Inflation Factors
PCA
-
Principal Components Analysis
KMO
-
Kaiser-Meyer-Olkin
ANOVA
-
Analysis of Variance
xxii
LIST OF APPENDICES
APPENDIX
TITILE
PAGE
A
A Sample Definition of Customer Loyalty
209
B
A Sample Definition of Customer Satisfaction
211
C
Research Questionnaire
212
D
the Persian Version of Questionnaire
216
E
Outliers
219
F
Normality
220
G
T-test comparison of early and late responses
222
H
Results of EFA to verify common method bias
225
I
T-test
comparison
questionnaires
of
web-based
and
e-mail
227