The effect of digital transformation on customer satisfaction and customer loyalty: The case of Participation Banking

Matin Shahverdiyev

Master's thesis

Abstract:

Abstract The aim of this research is to examine the impact of digital transformation on customer satisfaction and customer loyalty in the banking sector of Azerbaijan. The study adopts a quantitative approach and utilizes the descriptive method. The relational scanning model is employed to determine the relationships between variables. The research focuses on the digital active customers of Kapital Bank, with a sample size of 130 participants. Data collection instruments include the "Customer Experience Scale," "Customer Satisfaction Scale," "Customer Loyalty Scale," and a demographic information form. Data are collected through an online survey using Google Forms. The collected data are analyzed using descriptive and inferential statistical analyses, including Mann Whitney U and Kruskal Wallis tests. The findings indicate positive levels of customer experience, satisfaction, and loyalty towards digital applications in the banking sector. Customer experiences vary based on gender, age, education level, marital status, and frequency of digital application usage. Customer satisfaction also differs according to these demographic and usage variables. Furthermore, customer loyalty is influenced by gender, age, education level, income level, marital status, and frequency of digital application usage. The research reveals a positive and significant relationship between digital transformation and customer loyalty, as well as a highly positive relationship between digital transformation and customer satisfaction. Regression analysis confirms that digital transformation in the banking sector has an impact on customer satisfaction and loyalty.

Abstract:

Abstract The aim of this research is to examine the impact of digital transformation on customer satisfaction and customer loyalty in the banking sector of Azerbaijan. The study adopts a quantitative approach and utilizes the descriptive method. The relational scanning model is employed to determine the relationships between variables. The research focuses on the digital active customers of Kapital Bank, with a sample size of 130 participants. Data collection instruments include the "Customer Experience Scale," "Customer Satisfaction Scale," "Customer Loyalty Scale," and a demographic information form. Data are collected through an online survey using Google Forms. The collected data are analyzed using descriptive and inferential statistical analyses, including Mann Whitney U and Kruskal Wallis tests. The findings indicate positive levels of customer experience, satisfaction, and loyalty towards digital applications in the banking sector. Customer experiences vary based on gender, age, education level, marital status, and frequency of digital application usage. Customer satisfaction also differs according to these demographic and usage variables. Furthermore, customer loyalty is influenced by gender, age, education level, income level, marital status, and frequency of digital application usage. The research reveals a positive and significant relationship between digital transformation and customer loyalty, as well as a highly positive relationship between digital transformation and customer satisfaction. Regression analysis confirms that digital transformation in the banking sector has an impact on customer satisfaction and loyalty.

Keywords

digital transformation, customer satisfaction, banking, customer loyalty

Keywords

digital transformation, customer satisfaction, banking, customer loyalty

Language used: English

Date on which the thesis was submitted / produced: 13. 12. 2023

Thesis defence

• Date of defence: 29. 1. 2024
• Supervisor: Martin Machek
• Reader: Daniela Kolouchová

Vysoká škola ekonomická v Praze

Master programme:
Management