Use of Technology on Customer Satisfaction: A Literature Review

Business Research Methodology
Use of technology on customer satisfaction

Business Research Methodology 1
Contents
Introduction......................................................................................................................................2
Identification of problem.............................................................................................................2
Literature Review............................................................................................................................3
Independent variable....................................................................................................................3
Use of technology....................................................................................................................3
Dependent Variable.....................................................................................................................7
Customer satisfaction...............................................................................................................7
Interrelationship between Independent and Dependent Variable..............................................11
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
Appendix........................................................................................................................................19

Business Research Methodology 2
Introduction
A literature review is a writing of an academic paper that provides the information including
practical findings along with the theoretic and procedural contribution to the specific topic. The
aim of the report is to provide the literature review on the use of technology on client satisfaction
in which use of technology is considered as the independent variable and client satisfaction is to
be taken in view as the depended variable. Moreover, theories related to both the variable have
been discussed in the report with the references to journals and books. The issue has been
selected considering the fact that there is lack of client satisfaction in the banking sector.
In the banking sector, the use of technology leads to the customer’s satisfaction and with the
change in the ways of working the use of technology is increasing in the business. To regulate
the business smoothly it is essential for banks to meet the expectation of the customers because
in this sector without customer satisfaction the banks won’t be able to work effectively. This is
the fact that the emerging technologies have brought the change in the working of banks from
paper and branch based system to digitized and online banking services. Moreover, it is bringing
the changes in the way the banks offer its services to the customers. There is various service
industries present but banking industry is one of the booming industries.
Identification of problem
There are numerous studies that are conducted by the authors to evaluate the role of technology
on customer satisfaction in the banking sector. These studies reflect the resolution of the lack of
client satisfaction with the use of technology in banks. There are numerous factors present which
affect the satisfaction of clients in the banking sector such as lack of information and updates,

Business Research Methodology 3
increase in the waiting time of customers to get services, lack of flexibility in customer support
services and many others.
Literature Review
This sector of the paper reflects the issue associated with the use of technology and customer
satisfaction with the help of literature and later the interrelation among both the variable is
discussed.
Independent variable
Use of technology
According to Alsamydai, Yousif & Al Khasawneh (2012), the speedy development of the
internet and the globalization of the market made the businesses shift towards the e-service. The
banking sector is getting influenced by the development of the information technology. In
addition, the customers also like to enjoy the flexibility and convenience in their transactions.
The adoption of technology is not only better for the customers but it provides numerous
advantages to banks such as improvement in payment processing, cost of transaction processing
and improvement in the relationship with the customers.
Similarly, Dangolani (2011), contended that the reason behind the adoption of technology is to
enhance the privacy and security of the online banking transactions. Moreover, with the use of
the specific technology measurement the banks can collect the data easily which helps them in
attracting more customers. In addition, the Martins, Oliveira, & Popovic (2014) demonstrates
some problems while measuring the effects of the technological progress such as extent that
markets are competitive as they are taking the advantage of the technological advances in the

Business Research Methodology 4
industry. Along with this, technology is used by the different hackers to perform the activity of
the security breaches. This is the fact that many banks across the world face the problem of
security breaches which is possible because banks store their statistics on distant cloud services
which can be easily retrieved online with the use of username and password. Along with this, the
emergence of technology has replaced the places of human position in the market which is one of
the drawbacks of the use of technology in the sector. The technology implementation in the
business leads to the extra cost of maintenance and updating the core technology (Ramey, 2012).
This reflects the opinion of the author that the use of technology in the banking sector leads to
both positive and negative aspect of the banks.
Shiffu (2014), listed different examples of technological changes in the banking industry; he said
that there are three major changes due to which the modern banking system is different than the
traditional banking system. These technologies are electronic payments technologies, internet
banking, and the information exchanges.
Internet banking
The banks provide the numerous stages of internet services and the combination of internet and
physician offices and ATM networks. The technology is widespread in short span and this is
proved with the study conducted by the nationwide banks in the U.S. found that as of the end of
2000, approximately 37.3% of companies offer transactions through internet sites added to this
27.7% offered informational websites. Considering the Berger (2003) opinion, this technology
leads to the competition in the market due to which the other banks also adopted internet
banking.
Electronic payments technologies

Business Research Methodology 5
This is one of the effective methods that are used by banks for transferring funds electronic with
relatively little paperwork. Worku (2010) believes that this system initiated the rise in the use of
automated clearing house (ACH) which is mainly a substitute for paper orders for the systematic
costs which include credit of payments, monthly withdraw, and mortgage payment and many
others.
Information exchanges
This technology has resolved the problems faced by the banks related to the sharing of data as
with the use of technology the banks and additional creditors can easily share the relevant data to
the solvency of loan candidates. These connections gather data from the business institutions,
public records, and trade creditors and many other institutions.
Technology has contributed in the development of banking system across the world as with the
use of technology the banks are able to provide the services to NRI, use of plastic money, remote
banking, self-inquiry facility and many others. In addition, the Ramey (2012) said that there are
many more technologies that are going to be adopted by the banks in the coming years which
will provide the benefit to the customers and leads to their satisfaction. For instance; banks can
make use of Google glass technology with the help of which they will be able to find the nearest
office and ATM, check account balance and video call for mechanical support. Most of the
banks in the nations have started making the use of the Augmented Reality (AR) app (Martins,
et.al, 2014). This app provides the facility for the incorporation of the digital data with the user's
surroundings in the real world.
Following theory is related to use of technology, which is formulated by Venkatesh and his
mates