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* Corresponding author: Sahem A Nawafleh

University of Petra - Amman- Jordan

ISSN: 0976-3031

RESEARCH ARTICLE

VIRTUAL MARKETING AND ITS IMPACT ON THE QUALITY OF BANKING SERVICES

Sahem A Nawafleh and Abdelwahhab I Allozi

University of Petra - Amman- Jordan

ARTICLE INFO ABSTRACT

Article History:

Received 8th, November, 2014

Received in revised form 18th, November, 2014

Accepted 12th, December, 2014

Published online 28th, December, 2014

This paper tries to have a better understanding of how virtual marketing affects services'

quality in banking sector. Data was collected from a random population sample (n=60) to

reveal customers perspective in this study, a survey written questionnaire was answered by

a randomly selected sample. Data were assembled from this research instrument analyzed

by (T) test (3.5) for interpretation. To accomplish the finest approach concerning the

research and achieve the meant population which is the keen customers of commercial

banks of Jordan who are able to provide significant responses. However, the study finds

that Virtual marketing has important and significant effect on customers perceived banking

services and the service quality has been improved since Virtual marketing has been used

in banking sector.

© Copy Right, IJRSR, 2014, Academic Journals. All rights reserved.

Key words:

virtual marketing, e-banking, banking services

INTRODUCTION

Understanding had become an important issue in marketing.

Line (2003) identified that companies, today, have moved their

focuses into customers oriented marketing rather from

products and sales. Practitioners and academics are assessing

service quality to understand their antecedents, consequences

and to set up methods for improving quality to achieve

advantage and assemble customers' satisfaction (Palmer and

Cole, 1995)

Banks uses several ways to distribute and promote their

services, such as:

A traditional way of intermediaries for transferring and

promoting banking services to the client Commercial

advertising (TV, radio, illuminated advertising screens, spot

light, etc.).

Public Relations between banks, institutions and individuals

E-service marketing, like ATM Services, Visa card, computer

networks and Virtual marketing for Banking Services

Research Problem

This study inquires about the following questions

1. Does virtual marketing improve quality services of

banking?

2. Does virtual marketing have a high degree of reliability

and safety?

3. Can virtual marketing build a bridge of communication

between the Bank and the Customer?

Study Hypotheses

1. There is no significant impact of virtual marketing on the

quality of banking services.

2. There is no significant effect of electronic communication

methods on the quality of banking services.

3. There is no statistically significant effect of safety degree

on the quality of banking services.

4. There is no statistically significant impact of website on

the quality of banking services.

LITERATURE REVIEW

Rapid development of information and communication

technologies, nearly in all business field; offered new chances

and guarantees. Where as Banking Business is free to new

expertise owed to its business fundamentals – nearly all banks'

products are insubstantial, thus they fit electronic backgrounds.

When it concerns protection; Banks are extremely provoked to

employ the most recent technologies– they encase entirely

employed potentials available by technology. Primarily the

clear example of communication & information technology

banks used is Internet banking .(Diniz et al ,.2005)

The benefits of virtual marketing over physical marketing

Virtual marketing is the marketing of a brand via the internet.

It includes both direct response marketing and indirect

Marketing elements and uses a range of technologies to help

connect businesses to their customers (Quirk 200). It can be

also defined as all the activities a business conducts via the

worldwide web with the aim of attracting new business,

maintain current business and developing its brand identity.

(Quirk 2006)

Reach: To access potential consumers from all over the world,

Virtual marketing brings in new avenues for smaller

businesses, with smaller budget. Scope: It allows marketers to

propose a wide range of products and services and to attain

clients in a wide range of ways. Virtual marketing consists of,

among other things, information management, public relations,

customer service and sales. Interactivity: It supports

conversations between companies and consumers, with a two

Available Online at http://www.recentscientific.com

International Journal

of Recent Scientific

International Journal of Recent Scientific Research Research

Vol. 5, Issue, 12, pp. 2269-2272, December, 2014

International Journal of Recent Scientific Research, Vol. 5, Issue, 12, pp. 2269-2272, December, 2014

2270 | P a g e

way-communication channel, companies can make their

consumers more dynamic and adaptive through feeding off of

their responses. Immediacy: Virtual marketing can give an

instant impact. In which consumers can take the step from

hearing about a product to actual acquisition. (Quirk 2006)

E-Banking

The delivered banking services through the Internet are EBanking

services. The increased apply of E- banking services

have numerous advantages for both clients and banks. Ebanking

services permit customers to have a better perception

of their banking business and assist them to grip their banking

transactions easily and quickly. As well, customers who use

Internet banking proved to be concerned in more banking

transactions, which is favored by the banks themselves.

Besides, by using the Internet, the bank productivity increases

as well as the delivery and production of their services

developed into more competent (Swedish Bankers'

Association, 2005).

Both customer and employees were effectively enabled by

technologies in getting and providing services. Clients can

serve themselves more efficiently throughout self–service

technologies (Zeithaml and Bitner, 2003). For example, by

using online banking customers can access their accounts,

check balances, apply for loan, shift money among accounts,

and take care of mainly any banking need they might have

without the assistance of Bank's employees. (ISMAIL and

OSMAN, 2012).To make E-banking a success, It has been

recognized, it must be for its money saving ability and

interface with clients, not through being an income resource

(Wade, 2003).

Service Quality in Banking

Cowling and Newman (1995) identified that service quality

has been widely used to evaluate the performance of banking

services. The customer satisfaction is determined through

customer expectation Level and service quality level provided

by the organization that the level of Satisfaction has the ability

to recognize the relationship between E-banking and service

quality. E-banking fills the gap between the expected and

perceived service quality, so it plays a vital role in giving

satisfaction, as it. To verify the accuracy of the e-banking

transactions, banks should make electronic services more

accessible by allowing the customer.

Parasuraman et al., (1988), identified five criteria used by

customers in evaluating service quality:

1. Reliability; the firm ability to perform the promised

service dependably and accurately

2. Responsiveness; the willingness to help customers and to

provide prompt service.

3. Assurance; employees' knowledge, courtesy and their

ability to inspire trust and confidence.

4. Empathy, the individualized attention given to customers.

5. Tangibles; the appearance of physical environment

elements, equipments, personnel, and communication

material (reports, billing statements).

Electronic Banking Challenges

Since the arrival of the Internet; Banking practices have

undergone significant change. Banks provide many online

services, which are immensely convenient for customers.

However, E-banking comprises several risks to the banks and

clients.

Regulation and Legalities: it extremely difficult for regulatory

authorities to impose finance laws through E-banking.

Moreover, as regulations vary from country to another country,

banks possibly will lack expertise in the financial laws for each

country in which they have business.

Digital and Financial Divide: in "E-banking: Challenges and

Opportunities," Rupa Rege Nitsure, argues that a digital divide

exists between banks. the size and financial support a bank

related to this problem. so that they could reduce digital divide

and compose more commercially fair Internet banking to

banks and customers ; banks would need an adequate funding

source

Security: Schechter stated that E-banking sets a bank to

security concerns. For example, bank's server hacking to reach

accounts data. Banks use Internet banking ought to update

their software and hardware constantly to make sure that their

security risks do not increase through compatibility issues and

increased knowledge of security systems.

Reputation: Schechter asserts that governance and security

problems might make a bank look bad to clients. Additionally,

the bank may gain an impersonal feel if it more relies on

Internet banking. These problems may discourage clients from

choosing a bank that relies on e-banking, regardless of how

convenient e-banking may be.

METHODOLOGY

In the randomly population sample, each member has an equal

chance to take a part in the study.

A survey written questionnaire was answered by the defined

population. For more explanation, (T) test (3.5) was used to

examine the data collected from this research device. The

overall number of participants in the study is (60 banks'

clients); in order to get better approaching as regards the

research and achieve the intended population which is the most

keen customers of commercial banks of Jordan that are able to

present relevant responses. Samples consisted of Customers of

two banks of the Greater Amman area banks. The number of

males was (48 clients = 80 %) and females were (12 clients =

20 %).

Participants were acknowledged that all information relating to

them will be confidential and will only be used for the study

purpose, accordingly, answering the questionnaire was under

their consent.

Participants' profile and the survey questions are the two

sections which the questionnaire was divided into. The profile

includes socio-demographic characteristics of study members

like age, gender, individuals' income level and qualifications.

To determine the impact of virtual marketing on the quality of

banking services in the survey questions, participants

responded to sixteen statements. The questionnaire consisted

of statements about the usage of Virtual marketing and its

impact on participant derived from their observation.

DISCUSSION

A question was asked to the highest degree earned by

participants, and whether they had completed an

International Journal of Recent Scientific Research, Vol. 5, Issue, 12, pp. 2269-2272, December, 2014

2271 | P a g e

undergraduate, a university degree or Secondary education.

Nevertheless, the majority of the participants had a Bachelor

degree (39 participants, 65%). Table 1

T test was also used to examine the hypothesis that "Virtual

marketing has no effect on Banking Services qualities", on the

statistical significance ( = 0.05).

Table 2 reveals that there are statistically significant

differences, where the value of T test is (22.787) and the

statistical significance (0.000), which is less than the specified

value (0.05), which is less than the specified value (0.05).

T test was employed to observe the hypothesis that " no impact

on the quality of banking services electronic communication

means have ", on the statistical significance ( = 0.05).

Table 3 reveals that there are statistically significant

differences, where the value of T test is (9.308) and the

statistical significance (0.000), which is less than the specified

value (0.05), which is less than the specified value (0.05).

T test was employed to examine the hypothesis that “no impact

on the quality of banking services the degree of safety has ", on

the statistical significance ( = 0.05).

Table 4 reveals that there are statistically significant

differences, where the value of T test is (6.598) and the

statistical significance (0.000), which is less than the specified

value (0.05), which is less than the specified value (0.05).

Accordingly, the availability of security and confidentiality has

increased the quality of Banking Services.

T test was used to examine the hypothesis that "Electronic

Website has no impact on the quality of banking services ", on

the statistical significance ( = 0.05).

Table 5 reveals that there are statistically significant

differences, where the value of T test is (4.651) and the

statistical significance (0.000), which is less than the specified

value (0.05), which is less than the specified value (0.05).

RESULTS & RECOMMENDATIONS

To categorize the mainly significant outcomes of the study and

to reach an access to a range of recommendations, previous

section discussed and analyzed the responses of the study

participants to the questionnaire paragraphs, By analyzing

study questions we end with the significance of discussing the

issue of virtual marketing generally and its increasing

importance. The answers revealed that Virtual marketing has

impact on Banking Services Quality.

The study highlighted a number of the key factors which are a

chief role in the increasing importance of virtual marketing;

among the most prominent reasons is the availability of

electronic communication techniques.

One of the topics interested by the study is the security and

confidentiality of information, which is believed as one of

virtual marketing most central issues that have to be

considered, and its impact on increasing the quality of Banking

Services.

Another important topic was highlighted is the impact of the

website on the quality of banking services and the need to

update and develop the existing information on the Bank's

website, in addition, to use a variety of involved in a set of

standards that must be accounted when practicing e- marketing

by electronic delivery of services time periods and to decrease

the cost of electronic services.

In addition, it's highly recommended that the banks to use

intense publicity campaigns to produce public about their

electronic services and to distribute leaflets on how to use

these services.

The use of advanced technology continuously always makes

Bank In the foreground of Electronic Banking Business. In

addition, Banks must acquire new more secure means to

maintain customer mail site and that the banks must create a

database serve customers faster, better and continuously update

the information

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Table.1 Qualifications

Qualification Number percentage

Secondary 7 1.7 %

Diploma 13 8 %

Bachelors 39 65 %

Graduate 21 21 %

Total 80 100%

Table 2

Calculated T Average Significance level Result

22.787 4.6750 0.000 rejected

Table 3

Calculated T Average Significance level Result

9.308 4.1917 0.000 rejected

Table 4

Calculated T Average Significance level Result

6.598 3.9389 0.000 rejected

Table 5

Calculated T Average Significance level Result

4.651 3.9333 0.000 rejected

International Journal of Recent Scientific Research, Vol. 5, Issue, 12, pp. 2269-2272, December, 2014

2272 | P a g e

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*******

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