Service quality dimensions and customer satisfaction in internet banking: The moderating role of demographic factors in Iraq

Abstract

The rapid expansion of information and communication technology over the past two decades has significantly transformed business practices in Iraq, particularly within the banking sector. Despite this progress, limited research has examined how the quality of Internet banking services affects customer experiences in the country. This study investigates six key dimensions of service quality: timeliness, ease of use, reliability, enjoyment, security, and control. It also explores whether demographic characteristics moderate these relationships. Data were collected in 2023 from 264 Internet banking users in Iraq through a structured questionnaire. The analysis employed structural equation modeling (SEM) and analysis of covariance (ANCOVA) using SPSS and Stata to assess both direct and moderating effects with strong statistical rigor. The results reveal that all six service quality dimensions have a significant and positive impact on customer satisfaction. Furthermore, demographic factors, particularly age and education, were found to moderate these relationships to varying degrees. This study contributes new empirical evidence to the limited literature on e-banking in Iraq by demonstrating the importance of specific service quality components in shaping customer satisfaction. The findings also offer practical value for Iraqi banks by providing insights that can support the enhancement of digital strategies and help institutions maintain competitive advantages amid rapid technological change and fluctuating financial conditions.