* 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
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Vol. 5, Issue, 12, pp. 2269-2272, December, 2014
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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
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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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Qualification Number percentage
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Table 2
Calculated T Average Significance level Result
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Calculated T Average Significance level Result
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Calculated T Average Significance level Result
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Calculated T Average Significance level Result
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