The Effect of Digital Quality on Customer Satisfaction and Brand Loyalty Under Environmental Uncertainty: Evidence from the Banking Industry

This study investigates whether digital quality significantly shapes customers’ perceived service quality and examines the relative importance of its components—system, information, and service quality—as brand equity factors. Specifically, it explores the impact of digital quality on customer satisfaction and brand loyalty and analyzes how its individual elements interact with environmental uncertainty. A survey was conducted from February to March 2023 via Google Forms, targeting 406 Korean bank users. Quota sampling was used to ensure balanced age distribution, and after removing insincere responses, 330 valid samples were analyzed using structural equation modeling with Smart-PLS. The findings reveal three main insights. First, among perceived quality dimensions, brand image, customer orientation, and physical quality significantly influenced customer satisfaction and, in turn, enhance brand loyalty. In contrast, brand awareness and brand availability were not significant determinants. Second, digital quality—comprising system, information, and service quality—indirectly boosted brand loyalty by enhancing customer satisfaction. Third, while environmental uncertainty positively affected customer satisfaction, it did not significantly moderate the effects of digital quality components. These results imply that in the digital banking era, customer valuation is increasingly influenced by digital service channel quality and brand image rather than traditional brand equity elements like company size. Nonetheless, the continued relevance of physical quality underscores the importance of managing both physical and digital service environments. Therefore, multi-channel service quality management is essential for banks aiming to strengthen brand equity and maintain customer loyalty in uncertain environments.