2.3 Online Banking Service Quality
Online banking service quality is also known as e-service quality and numerous studies have established that service quality (SQ) is a very crucial aspect in customer service. It is also a key factor in business profitability and survival. SQ has become a significant differentiator in many leading organizations. Factors such as improved accessibility, reduced costs, better administration, and time sensitivity are key drivers of banking services (Brown and Molla,
2005). Traditional SQ is defined as customers? attitudes or beliefs concerning the degree of
service excellence given at organizations physical facilities in this case bank branches, (Santos,

For the measurement of SQ, Parasuraman et al, (1988) created the SERVQUAL instrument which is a gap model for the comparison of perception against expectation. This instrument used the following variables; tangible, reliable, assurance, responsiveness and empathy. A lot of the research that has been done since have used this instrument to measure SQ (Kang and James,
2004). This has also faced a lot of criticism based on the fact that it looks at quality from service delivery process; service quality has many dimensions and these dimensions may differ (Brady and Cronin, 2001).

Online Banking Service (OBS) is defined as an interactive information service, the growth of online based services has really changed the way in which company and customers interact (Yang, 2001). Electronic service is not a relatively one way marketing activity and this hence makes measuring online banking service, and its quality a complex undertaking. Key dimensions were created by Ranganathan and Ganapathy (2002) and these were information content, security and privacy, and design. This was followed by the creation of an instrument to measure online service quality based on these factors; web design, reliability, fulfillment, customer service, security, and privacy (Wolfinbarger and Gilly, 2003). Zeithaml, Parasuraman and Malhotra’s (2002) e-SQ study identified eleven dimensions; site aesthetics, ease of navigation, personalization, assurance, privacy, reliability, access, responsiveness, flexibility, efficiency, and price knowledge. Parasuraman et al. (2005) then developed E-SQUAL instrument consisting of system availability, efficiency, fulfillment, and privacy.

They also developed E-RecSQUAL which was made up of eleven dimensions that centered on contact, responsiveness and compensation. In the study done by Li. Y. (2009), the variable of tangibility was replaced by website interface, and interaction as there was no physical interaction in online banking. The study showed that website design and quality has an impact on customer satisfaction and trust. It is also known that website design is more appealing for online shopping and website quality is more geared toward banking and transactional services and as the online banking service has become commonplace in the banking industry, measuring service quality is a critical aspect for the banks.

2.4 Customer Satisfaction
According to Hom (2000), customer satisfaction refers to a short term positive attitude that can change owing to various circumstances. Bruhn, (2003) defines satisfaction as an assessment based on experience on how far his expectations of the overall functionality of services were fulfilled. It is largely revealed that customer satisfaction is shown as a result of repeat purchasing, tireless effort in obtaining the product in question. Pairot (2008), defined customer satisfaction as the company’s ability to fulfill the business, emotional and psychological needs of its customers. He also acknowledges that customer satisfaction levels vary as they have different attitudes and experiences as perceived from the company.

Bank customer satisfaction is regarded as banks fully meeting the customers’ expectation; it is also said to be a feeling or attitude formed by bank customer after service, which connects the various purchasing behavior (Jamal and Naser, 2002) customer satisfaction is seen to be a state of mind that customers have about a company when their expectations have been met over the lifetime of the product or service, it is then noticeable that satisfaction appears to be between pre- exposure and post-exposure of attitudinal components and serves as a link between the various stages of customer buying behavior (Jamal and Naser, 2002)

In previous studies done, (Juma, 2013), looked into the relationship between expectations, performance and service delivery, It revealed that when a customer judges the performance of a product or service, he compares a set of performance outcomes that are expectations. The product is then is considered to be satisfactory or dissatisfactory in service delivery. In another study, (Oluoch, 2012) examined the factors affecting the adoption of online banking by

customers where she looked at the relationships between the perceived usefulness, perceived ease of use, perceived risk toward the use of mobile banking technology and found out that customers were opened to use of mobile banking technology but some were put offed by the perceived risk element which is the concern of their security In using the technology customer satisfaction has received wide attention as an important variable in business strategy in a very dynamic and competitive market (Lovelock and Wirtz, 2007). This study approaches customer satisfaction in a process perspective because in online banking, customers’ evaluation of quality happens during the delivery process.

2.5 Online Banking and Customer Satisfaction
Today’s economy is very competitive and with the customer getting more and more aware, customer satisfaction is considered to be the core of success and online technology can be used to improve service quality for customer satisfaction (Jamal and Naser, 2002). This rapid technological development has led the online channel the best for provision of banking products and services to their customers as this establishes, extends and retains the relationship (Robinson,
2000). It is a strategic advantage for banks to maintain great relationships with their customers for success.