June 2025 Edition

SERVICE TECHNOLOGY AND CUSTOMER LOYALTY OF SELECTED DEPOSIT MONEY BANKS IN ABUJA METROPOLIS: A MODERATING ROLE OF PERCEIVED SWITCHING COSTS

Pere Abinabo, Prof. Aliyu Mamman, Jibrin Nuhu Shagari PhD

Abstract

This study examined the effect of service technology and customer loyalty of selected deposit money banks in Abuja metropolis: A moderating role of perceived switching costs, rooted on Technological Acceptance Model (TAM), employed cross-sectional survey to collect data from respondents. The study population was 369 e-banking customers of the 4 selected banks in Abuja metropolis, Nigeria, with primary data collected on the sample using a 5-scale Likert questionnaire. The study adopted descriptive and inferential statistics tests using multiple regressions with a PLS-SEM approach to analyse the data. The result showed that the direct relationship of digital payment has a moderate positive effect on customer loyalty, but this effect is not statistically significant. Further results reveal that internet banking have a positive and significantly influences customer loyalty, whereas perceived switching cost have a negative and insignificant direct effect on customer loyalty. Furthermore, the indirect relationship of the result revealed that perceived switching cost does not positively and significantly moderate the relationship between internet banking and customer loyalty and perceived switching cost does not positively and significantly moderate the relationship between internet banking and customer loyalty. This study recommends that banks should enhance digital platform functionalities, ensuring seamless user experience, personalization, and integration with other banking services. Also, customer engagement can be improved through AI-driven chat-bots, self-service portals, and interactive mobile banking features. This will improve their completive strategies and also increase market share and profitability of the firms.

Keywords

Service Technology, Customer Loyalty Internet banking, Digital Payment, and Perceived Switching Cost, Abuja Metropolis, Nigeria.

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