EVALUATING CUSTOMER EXPERIENCE TOWARDS

MAYBANK2U SERVICE AND ITS EFFECTS ON CUSTOMER

LOYALTY

Mayzatul Azura Sarip 2009988153Nor Maya Binti Salman 2009323773

OCTOBER 13, 2010

IntroductionThe banking industry has been constantly

innovating and with the advent of technological developments, particularly in the area of telecommunications and information technology, one of the latest innovation that took birth, and quite inevitably, has been the internet banking.

This phenomenon has attracted a number of empirical studies (Bielski, 2000; Booz, Allen & Hamilton, 1997; DeSourdy, 2001) that analyzed the development of electronic banking and its operations.

Company Background• Malayan Banking Berhad is the holding company

overseeing Malaysia's largest bank, Maybank and a range of financial sector subsidiaries.

• Maybank offers a full range of commercials, corporate, and private banking services, with a network of more than 450 branch offices and more than 2,500 ATM machines.

• Maybank, as the group as a whole is more commonly known, has also built a strong position in the regional market. The company operates more than 20 branches in Singapore and the Philippines and also has a banking presence in most of the other Southeast Asian markets, including Brunei, Papua New Guinea, Indonesia, and Vietnam. The bank also operates branches in New York and London

•Malayan Banking Bhd (Maybank) launched the country's first internet financial portal which is accessible via www.maybank2u.com on June 2000, offering services such opening of accounts, balance inquiry, funds transfer, cheque status inquiry, stopping payment of cheque, bill payment, online stock investment, insurance application and renewal, online shopping and electronic procurement

Objective•The objective of this study are ;

The main purpose of the study is to evaluate customer experience towards Maybank2u service and its effects on customer loyalty

The specific objectives is to evaluate those factors influencing consumer’s loyalty towards Maybank2u services: Perceived usefulness, perceived ease of use, perceived enjoyment, perceived credibility and social norm (independent variable).

Research Problem These studies show that bank customers need

more than one banking channel such as ATM, telephone banking and Internet banking, in addition branch-banking channel.

The reasons of why bank customers have that need are two main reasons. First, bank customers in Malaysia received their salary through banking institutions that may lead them to utilize Internet banking and so forth. Second, bank customers in Malaysia have utilized banking financing products such as mortgages, automobile and credit cards.

The reason why this study should be conduct because to evaluate the customers experience towards Maybak2u.

It also help us to know whether the customer happy with their experience and become a loyal customer.

Relevance Of The study• Despite of the advantages of using internet banking

services still customer hesitate to use online financial services for a variety of reasons. This reluctance has resulted in inconvenience associated with writing and mailing checks, spending time to stop at a branch and consulting to get financial information with bankers.

• On the other hand, by using Maybank2u services, customer can conduct fast and convenient financial transaction activities and obtain their account information without the limitation of office hours or a need to visit the bank office. Therefore in this relation, is important to understand and evaluate customers experience of using this services affect their loyalty towards the bank.

• This study identifies several variables that influence the loyalty of Maybank2u services by customers. It will be meaningful for financial institutions to understand customer’s acceptance and preferences regarding online financial services. Through this research then, it is hope that Maybank2u help consumers to gain great experiences and be loyal to the bank.

Methodology The data for this study is obtained through a

survey conducted in Maybank branches, in Kuala Lumpur

Data collection methods are an integral part of research design. There are two data collections methods, the qualitative and quantitative method. In this study, we choose qualitative method as a data.

100 questionnaires will be provided for the survey to Maybank2u users.

The questionnaire was constructed in two sections. First section consists of respondent characteristics whilst second part consists of the asked constructs.

The distribution of subjects in regards to gender, age, education, income, religion and ethnics.

Closed-ended questionnaires most of which is likert-type scale. The Likert scale questions are ranging from four scales, one to four (1-4), which is for 1-Strongly Disagree, 2- Disagree, 3-Agree and 4-Strongly Agree

In multiple-choice format, the questionnaire provided answer for the respondents and have select one of the answer. The maximum choices answer given is 5 and the respondent must select only one answer

Research Design According to Sekaran (2003), often identifying the variables in developing the theoretical framework, the next step is to design the research in a way that the data can be gathered and analyzed. The research design, which involves a series of rational decision making choices, was originally presented in a simple manner.

According to Malholtra (2004), research design is a framework or blueprint for conducting marketing research project. It details the procedures necessary for obtaining the information needed to structure and to solve marketing research problems. It lays the foundation for conducting the project. A good research design will ensure that the marketing research project is conducted effectively and efficiently.

In this study, the research design that is being used is descriptive study and it will help the researcher to better describe the research problem. A descriptive study is undertaken in order to ascertain and able to describe the characteristics of the variables of interest in a situation (Sekaran, 2003).

Research Model

Perceived usefulness

Perceived credibility

Perceived ease of use

Perceived enjoyment

Social Norm

Maybank2u customer ‘s experience

Independent Variables Dependent Variable

Hypotheses H1: Perceived usefulness has a positive effect on

customers experience towards Maybank2u service.

H2: Perceived ease of use has a positive effect on customers experience towards Maybank2u service.

H3: Perceived credibility has a positive effect on customers experience towards Maybank2u service.

H4: Perceived enjoyment has a positive effect on customers experience towards Maybank2u service.

H5: Social norm has a positive effect on customers experience towards Maybank2u service.

Conclusion and Recommendation• Effective co-operation among banks need also to

be developed. The value of internet banking is increased by linking one activity with other both within banks and with outside suppliers, channels and customers (Porter, 2001).

• Furthermore, Maybank2u should collaborate with internet service providers because it will enable banks to better control quality of services as well as enhance customers loyalty.

• In addition, a high quality internet infrastructure should be provided since it is one of the primary requirements for internet usage.

AppendixJournals • Nelson Oly Ndubisi and Queenie Sinti (2006) “Consumer attitudes, system’s

characteristics and internet banking adoption in Malaysia”

• Agarwal, R. and Prasad, J. (1998), ‘‘the antecedents and consequents of user perceptions in information technology adoptions’’, Decisions Support System, Vol. 22, pp. 15-29.

• Hoppe, R., Newman, P. and Mugera, P. (2001), ‘‘Factors affecting adoption of internet banking in South Africa: a comparative study’’, University of Cape Town, South Africa.

• Karem, K. (2003), ‘‘Adoption of electronic banking: underlying consumer behavior and critical success factors, case of estonia’’, Tallinn Technical University.

• Ndubisi, N.O. and Sinti, Q. (2005), ‘‘Internet banking adoption intention in Malaysia: the roles of personal and system characteristics’’, International Conference in Economics and Finance, Labuan,

• Mohd Najmie Bin Haji Osman, (2009), “A study on internet banking adoption among bank customers”

• Ahsanul Haque, Ahmad Zaki Hj Ismail and Abu Hayat Daraz, (2009) “ Issues of E-Banking transaction: an impirical investigation on Malaysian customers perception”

Website•www.maybank2u.com.my•www.bnm.gov.my

Books•Business Research model