Mohammad Khaleel Okour

The purpose of this paper is to examine the role of customers’ perceived value in mediating the relationship between Electronic Service Quality (ESQ) and customer satisfaction in online banking in Malaysia. The research model is developed based on the disconfirmation theory. Non-probability purposive sampling was adopted for data collection. A cross-sectional technique with a self-administered questionnaire was applied. The unit of analysis in this study is bank customers using online banking in Selangor, Malaysia. One hundred twenty-eight usable responses were received and analyzed. The Statistical Package for the Social Sciences (SPSS) was applied to analyze the data. Findings showed that the variance in customer satisfaction can be significantly explained via E-service quality dimensions (R2 = 0.52). The ease of use, security, reliability, responsiveness (ESQ) have a significant and positive impact on customer satisfaction among online banking users (p = 0.000). Furthermore, it was found that the customers’ perceived value significantly mediates the relationship between E-service quality and customer satisfaction (p-value = 0.0004). The experimental findings for this paper strengthen and expand the theoretical understanding of the relationship between ESQ, customer perceived value, and customer satisfaction that helps the banks in Malaysia to perform more successfully in the rapid business environment. This study also contributed to diminishing the gap in the ESQ literature between developed and developing countries, especially in the Malaysian context.