Usage of Information Communication Technology and Its Effect on Customer Loyalty. The Study Of Banking Industries In Jaffna Srilanka. (A Comparative Study Of State Banks & Private Banks)

Abstract

Purpose: To inspect the effect of information communication technology (ICT) on customer loyalty.

Design/methodology/approach: A questionnaire derived from previous studies and the relevant literature was completed by 200 customers of both state & private banks in Jaffna district, SriLanka. Correlation analysis assessed to find out the association between the level of information communication technology and customer loyalty. Usage of ICT has been measured with the help of operational cost reduction, time & speed, internal system efficiency, security & risk, working environment and communication &decision making. Apart from that customer loyalty has been evaluated with the help of switching cost, corporate image and trust. Regression analysis was carried out to examine the impact of the usage of ICT on customer loyalty. And also independent sample T-test and independent sample one way ANOVA were utilized to find out the significant mean different in customer loyalty among personal demographic variables.

Findings: information communication technology contributes significantly to customer loyalty and predicts 36.9 percent of the variation found. Operational cost, time & speed, internal system efficiency and communication & decision making in the information communication technology contribute significantly to customer loyalty compared with job and working environment. And also we can conclude that there is a significant mean different in customer loyalty among state banks and private banks. But there is no significant mean different in customer loyalty among different age groups. Overall association between information communication technology and customer loyalty is moderate positively correlated.

Research Limitations/Implications: This research focuses on banking services in one particular district of the country. Therefore further research in other sectors maybe necessary before generalization can be made on the entire service industry.

Practical implications: Based on the finding of the study, there are a few key points that can be used to conclude this research paper. It is very important that the information communication technology in banking service providers in Jaffna peninsula contributes to the customer loyalty. Mainly operational cost, time & speed, internal system efficiency and communication & decision making dimensions in the information communication technology contribute to the customer loyalty for acquiring new customers in the target market in the long period of time.

Originality/value: Reinforces and refines the body of knowledge relating to customer loyalty in service industries.

Keywords: Information Communication Technology, Customer Loyalty and Banking service providers.

Paper type: Research paper