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Technology Adoption and Customer Loyalty

Otesiri Oghenetega Mukoro and, Waribugo Sylva

Abstract

This research examined how technology advancement is associated with the customer loyalty of the Tier-1 commercial banks in Rivers State, Nigeria, by using a multidimensional measure involving ease-of-use, performance expectancy and perceived quality. The study assumed positivist philosophical paradigm, cross-sectional research design, and primary data was collected using a sample size of 362 customers in the six Tier-1 banks. The results, which were discussed with the help of the Structural Equation Modelling (SEM) and AMOS version 24, demonstrated that the positive correlation between technology adoption and the customer loyalty was significant. The research also extended the service-dominant logic, diffusion of innovation theory, the unified theory of acceptance and use of technology, and the technology acceptance model through demonstrating through empirical evidence the influential role played by various stages of technological adoption in terms of ease of use, performance expectancy and perceived quality, and also, created the importance of initial adoption stage of technology and, in the same way, facilitating customer retention and emotional attachment in the services of technology enablement. In addition, the research offered an effective practical information to managers of commercial banks in Rivers State, Nigeria; and made a conclusion that adoption of technology had improved the customer loyalty of Tier-1 commercial banks, where the customer experience was enhanced. It was suggested to Simplify the technology interfaces to make them available to more people, develop specific and anticipative service functions, encourage consistency in service quality and reliability across all streams, adopt proactive feedback and experience monitoring platforms, and leverage emotional branding and encourage relationship marketing.

Keywords

InnovationFeedbackAffectiveLoyaltyCustomer

References

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