RESERCH PROJECT PROPOSAL AbstractInternet of things (IoT) is o.docx

RESERCH PROJECT PROPOSAL
Abstract
Internet of things (IoT) is one of the major research and latest
area of telecommunication. IoT has seen its transformation from
tagged objects to things interconnections, and from things
interconnections to social object. It aims to convert physical
world into a digital world. IoT is a combination of physical
objects, controllers, sensors, actuators, and internet. The vision
2030 of Kingdom of Saudi Arabia urged the use of latest
technology (IoT) in business. Therefore, organizations are
expected to adopt IoT in near future. The success of any
technology depends on the perception of the users. But, most of
the existing literature focuses on the technology,
implementation of IoT, improving the use of IoT. A very less
literature is available on the perception of user regarding IoT.
Therefore, this study will find the perception of IoT users of
KSA using the quantitative research approach and survey
research design. The questions will be designed from the IoT
user perception model. The participants will be selected
randomly and the collected data will be analyzed by SPSS.
Statement of the Problem
Kingdom of Saudi Arabia (KSA) vision 2030 has set standards
for future of business and technology. KSA has decided to
invest in the promising sectors and will link business innovation
with technology. Novel technologies will be incorporated in
digital economy. Internet of things (IoT) is one of the latest
technologies of telecommunication and KSA aims to adopt this
technology. It has been anticipated that 90% of the
organizations will adopt IoT. A lot of research has been already
done in the world regarding the IoT and its application in
business. However, most of the literature concerns about the
technology, implementation of IoT, improving the use of IoT.

But, there is small literature available on the end user of the IoT
in the world and no such research has been done in KSA
(according to best of my knowledge). For IoT to be successful
in KSA, the perception of users of IoT in KSA should be
explored so that its acceptance could be anticipated.
Purpose of the Study
The purpose of this study is to find the perception of KSA users
regarding the IoT. The study will identify the perception based
on IoT user perception model that has 33 factors. These 33
factors cover all possible domains of human perception. The
findings will enrich the literature in describing the perception
of users. These findings can be used in future research for
increasing the users of IoT in KSA. Moreover, the producers of
IoT can then improve their IoT systems that meet the demands
and expectations of KSA and clarify the queries of the users.
Research Model :
1) Perceived ease of use
2) Perceived compatibility
3) Perceived performance expectancy
4) Perceived privacy risk
5) Perceived loyalty towards IoT
6) Perceived satisfaction
7) Perceived value
a) Perceived usage experience value (perceived emotional &
Quality performance value)
b) Perceived Quality-performance dimension
c) Perceived Emotional dimension
d) Perceived Cost-benefit dimension
e) Perceived Social value
8) Perceived Habit & Value
1. Perceived ease of use
2. Perceived compatibility
3. Perceived performance expectancy
4. Perceived loyalty towards IoT

5. Perceived satisfaction
6. Perceived value
a. Perceived usage experience value (perceived emotional &
Quality performance value)
b. Perceived Quality-performance dimension
c. Perceived Emotional dimension
d. Perceived Cost-benefit dimension
e. Perceived Social value
7. Perceived Habit & Value
Perceived Habit
Perceived loyalty towards IoT
H1
H2
H3
H4
H6
H0
H1: Perceived ease of use of IoT has a positive impact on
Satisfaction towards IoT services.
H2: Perceived compatibility of IoT has a positive impact on
H3: Perceived performance expectancy of IoT has a positive
impact on Satisfaction towards IoT services.
H4.1: Perceived Quality-performance dimension of IoT has a
positive impact on Satisfaction towards IoT services.
H4.2: Perceived Emotional dimension of IoT has a positive

H4.3: Perceived Cost-benefit dimension of IoT has a positive
H4.4: Perceived Social value of IoT has a positive impact on
H5 perceived Satisfaction of IoT has a positive impact on affect
loyality towards IoT
H6 perceived Habit using IoT IoT has a positive impact on
affect loyality towards IoT
Research Question/Hypothesis
The purpose of this study can be achieved by answering the
following research question:
What is the perception of KSA users regarding Internet of
things?
Hypothesis:
KSA users have positive perception about the IoT.
Literature Review
Technology is a basic block of development. According to
vision 2030, Kingdom of Saudi Arabia (KSA) has decided to
invest in the promising sectors. It will link business innovation
with technology. Novel technologies will be incorporated in
digital economy. The investment in technology will be helpful
in transferring knowledge, and will build the nation in variety
of fields such as business, industry, education, manufacturing
etc. It has also promised a private public partnership for
development of telecommunication and information technology.
Internet of things (IoT) is one of the latest technologies of
telecommunication (Hoffman & Novak, 2016). The sensors,
actuators, tags, electronic devices, etc. interact with each other
in IoT (AlHogail, 2018; Economides, 2017; Perera et al., 2016).
It aims to revolutionize all fields of life such as domestic life,
business, environment, marketing, agriculture, etc. It connects
people and devices anytime and anywhere (Chethan &

Tejaswini, 2017)
What is Internet of Things (IoT)?
There is no proper definition of IoT. Everything that was not
considered to use internet but has now started using internet is
termed as IoT. For example, cars, electronic devices, house
security, driving, patient surveillance, etc. It is a group of
technology on which other technologies and applications can
work on (Wortmann & Fluchter, 2015). According to Atzori,
Iera, & Morabito (2016), IoT is one of the major research area
of telecommunication. IoT has seen its transformation from
tagged objects to things interconnections, and from things
interconnections to social object. Similarly, AlHogail (2018)
describes it as a collection of connected devices and objects that
have unique identifier and which can communicate
data/information between each other without any man or
machine intervention. It consists of various technologies,
services and standards.
………………………still not finished
Role of IoT in Business and life
Advantages and Threats associated with IoT
Users’ perception of IoT
Methodology
In this study, quantitative approach will be used to analyze the
research question. The aim of this study is just to find the
perception of KSA users regarding the IoT. It will not explain
the reason of that behavior. Quantitative research approach is
most suitable for this kind of research questions (Daniel, 2016;
Williams, 2007).
Research Design
The research design will utilize surveys that will be distributed

to the users of IoT or the potential users of IoT. Surveys are
best instrument to measure the perception of individuals
(Moore, 2016). The variables will be taken from the IoT user
perception model that has 33 factors or parameters to measure
the perception of an individual.
Sampling
The users of IoT will be selected for administration of surveys.
Moreover, if required the potential users of KSA of IoT will
also be included in the sample. Sample will be selected on
random basis and there will be no distinction between the
gender, age group etc.
Instrumentation
The instrument of data collection will be a questionnaire
developed from the IoT user perception model. The participants
will answer on Likert’s scale of 1-5. Where 1 will mean strong
disagree and 5 will mean strongly agree.
Data Collection and Analysis Procedures
The data will be collected from surveys on Likert’s scale. A
pilot test will be conducted to confirm the uniformity i.e.
meanings of question and readability of questions. The
participants will be given letter of consent before filling the
questionnaire. The privacy of the participants will be protected
and the information of participants will not be used for any
other purpose. The collected data will be uploaded on computer
and SPSS will be used to analyze the collected data.
Discussion
The study will be very useful in finding the perception of users
of KSA. The results can be utilized for further research in
improving the application of IoT in KSA. These findings can be
used in future research for increasing the users of IoT in KSA.
Moreover, the producers of IoT can then improve their IoT
systems that meet the demands and expectations of KSA and
clarify the queries of the users.

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Perceived satisfaction
Perceived ease of use
Perceived compatibility
Perceived performance expectancy
Perceived values
Perceived Quality-performance dimension
Perceived Emotional dimension
Perceived Cost-benefit dimension
Perceived Social value

Introduction
Islamic banks start at early days of Islam since more than 14
centuries. Interest amounts banned in Quran and Prophet
Mohammed paced be upon him lift pre-Islam interest. Interest
was a common practice in periplasmic society and leads to
increase the gap between people specially at the holly city of
Makkah where the first incubation of Islamic society.
The alternative of interest at that era is borrowing and sharing.
Borrowing exist at Islamic Society and mentioned in many
historical resources and the companion of Prophet Mohammed
AlZubair ibn AlAwwam was the first Islamic investor in the
history as mentioned in AlTabakat AlKubra. People deposit the
money with AlZubair peace be upon him and he invest it in
trading and distribute the profit according to participation.
Nowadays, Islamic banks plays a vital role in commerce and
investment internationally. Islamic banks developed and create
new tools to accommodate current demand on financial services.
In Saudi Arabia, there are 26 banks of which 13 banks are
national and 13 banks are branches. From 13 national banks,
there are 4 Islamic banks and 7 conventional banks. Saudi
national banks contribute by 8.2 percent to the total global
Islamic finance assets. The total assets of the Saudi banks have
increased from SR 1,075 billion (about US$ 287 billion) in 2009
to SR 1,544 billion (about US$ 412 billion) in 2018 (SAMA,
2019). The total assets of Islamic banks have increased from SR
7.1 billion (about US$ 1.9 billion) in 2009 to SR 182.6 billion
(about US$ 49.6 billion) in 2018.
AL Rajhi Bank was the first Islamic bank licensed from Saudi
Arabian monetary Agency under the name AL Rajhi Financial
company without mentioning bank in official name. Islamic
banks prospered after that with more than three Islamic banks
and an even traditional banks create Islamic tools and sections.
In this research, we will analyze financial performance of
Islamic Banks with traditional banks. The study will include
three Islamic Banks and three conventional banks.

The three conventional banks are
1. Saudi Investment Bank
2. AlAwwal Bank
3. Banque Saudi Fransi
And the three Islamic Banks are:
1. Rajhi Bank
2. Aljazeera Bank
3. AlInma Bank
Our analysis will include financial ratio like:
· ROA (return on Assets)
· Ratio of net profit after tax over average assets
· ROE (Return on Equity)
· Ratio of net profit after tax over average equityLiterature
Review
The first appear of Banks as know today was at reconnaissance
era Italy – Venice at Sixteenth century. Bank is extraction from
Banko which the table is were merchandisers set around it to
finish their deals.
At 1619, Banco di giro established in Italy. This bank issued
deposit receipt for gold and silver deposits which facilitates
interchange of goods and services. These receipts were accepted
for exchanges at markets as same as today money or bank notes.
As time passed, Banks add new services and products to it is
portfolios and existence of banks expands too from Europe to
whole world. In Arab world, Egypt Bank was the first
commercial bank in the region established at Cairo in the late
Nineteenth century.
Bank services are important in modern economies. The
appearance of national currency enforces the existence of
central banks to manage and issue currencies. Central Banks
also issue, license and apply controls on banks. Banks duties is
important for the following reasons:
· Funding investments
· Saving depositors money
· Exchange currencies
· Money transfer

· Cash withdrawal
According to activity classification, banks divided into two
types:
· Investment Banks – dedicated for certain customers and work
mainly as wealth management
· Commercial Banks – Provide services for public
Commercial banks can be classified according to Islamic rules
to:
· Conventional banks – depends mostly on interest business
· Islamic Banks – use Islamic religion as a reference of business
activity
Islamic finance tools which Sharia-Compliant are:
· Musharakah or Mudarabah which mean sharing of profit and
loss with borrowers. It is certain type of partnership
· Istisna and Salam like cash advances for the manufacture of
assets and cash advances for the purchase of agricultural
produce
· Ijara which is Islamic leasing
Since 1970s, Islamic banks emerged after decades of
conventional banks domination to provide Islamic alternative
for peoples of Islamic countries. In Saudi Arabia, AL Rajhi
company for finance and trading starts at 1978 as a first Islamic
Bank in Saudi Arabia.
Bank Aljazeera is the second Islamic bank in Saudi Arabia. The
bank was established at 1975 as conventional bank but at 2006
all bank activities and operation changed completely to Islamic-
compliant.
Bank Albilad is the third Islamic bank in Saudi Arabia and the
last one is Bank AlInma which established at 2007.
Many studies investigate and digging deeper for Islamic banks
performance.
Hasiki (2013) examined 18 conventional and 9 Islamic banks in
Turkey, Egypt and United Arab Emirates in the period from
2008 to 2012.He find out that there are no significant difference
between conventional and Islamic banks in efficiency and
profit. Beck et al. (2013) explored the business model,

effectiveness, and stability of more than 500 conventional and
Islamic banks in more than 20 countries from 1995 to 2009.
They found considerable differences between Islamic and
conventional banks in terms of business models.
Almadoudi, Zainab Mashhour (2013) Study mainly concern was
profitability between banks in Saudi Arabia at King Abdul Aziz
University. the researcher come out with increasing in the
percentage of investment at intelligence property at Rajhi bank
than Samba group. Also, capital risk at Samba bank is higher
than Rajhi Bank because conventional banks depend on
governmental bills more than Islamic bank
Siddiqui (2008) conduct a research on Islamic banks in
Pakistan. The study selects the bigger two Islamic banks in
Pakistan which are Meezan and Albaraka. The calculated Return
on Assets and Return on Equity ratios for two banks discovered
the profitability of Islamic banks are better than average in
banking industry. Methodology
This study employed statistical measurements between Islamic
banking and conventional banking. It splits the data into two
sets on the basis of type of bank.
Comparing financial ratios between conventional banks and
Islamic banks for the last 3 financial years will be used to
answer the questions:
Is there a difference between Islamic and conventional
performance?
Do Islamic banks depend on religious people to survive and
grow, or they have their compete and survive methodology and
tools?
We will try to answer the questions by using secondary source
of information exist at reliable resources. Our resources
including official governmental agencies and banks verified
websites.

Results
Figure 1 Tadawul.com.sa
Figure 2 Tadawul.com.sa
Figure 3
Figure 4
Conclusion
Return on asset (ROA) show the profit company earned
comparing to total assets. The value of adequate ROA is
different based on industry and economical condition but in
general higher value is better.
According to The Federal Financial Institutions Examination
Council (FFIEC), USA banks average ROA is 1.21% which
means Saudi banks has superiority over USA banks with
average equal to 3.71%. ROA in USA is different significantly
among banks based on bank scale. FFIEC classify banks
according amount of assets to banks with more than billion
Dollar assets and banks with less than billion-dollar assets.
Bigger banks have less ROA comparing to smaller ones. Assets
in Saudi banks in our study are less than one billion dollars.
Due different in economy size between Saudi Arabia and USA
and limited international operations in Saudi banks the banks
classified as small in USA are considered big in Saudi.
USA do not have Islamic banks in order to compare with Saudi
Islamic banks but some neighbors’ countries like Jordan and
Bahrain.
Islamic Bank of Jordan ROA (0.39%) is lower than average of
Jordan Banks (1.43). Jordan has only one Islamic bank while
other Islamic financial services works as units under

conventional banks or branches of foreign banks. The low ROA
ration of Islamic bank on Jordan may reflect the total economy
situation since Jordan economy is small and face shrinking and
economic depression within recent years.
Saudi Islamic banks income comes from Murabah while
conventional banks depend on interest income which may
interpret the huge difference between Islamic and conventional
banks in ROA. Another think is that conventional banks invest
heavily on governmental bills which participate in low ROA.
Return on equity (ROE) is a performance measure by dividing
net income on shareholder equity. Because shareholders' equity
is equal to a company’s assets minus its debt, ROE may
consider net assets income.
ROE in both Islamic and conventional banks in Saudi Arabia are
closed to each other unlike ROA which have huge difference.
Higher ROE means the profitability of bank is better for owners
or shareholders and vice versa. Total average of ROE at Saudi
banks are 12% while according to FFIEC is 8.8 % at USA
banks. The same classification of USA banks according to scale
as mentioned above in the ROA section, The USA banks which
have similar scale of Saudi banks (under 1 billion assets) have
10.78 which is close to total average of Saudi Banks 12% and
closer to Saudi conventional banks 11.46 % than Islamic banks
which have 12.72% ROE.
In general, Saudi banks profitability is better than international
average which representing economical strong situation and
investment environment. Saudi Arabia Monetary Agency plays a
vital role in these indicators by controlling interest rate and
other financial instruments for banks. Another reason is limited
number of banks in Saudi Arabia comparing to other countries
which reflect SAMA policy in concentrating on the quality not
quantity. Saudi banks are 13 national banks without foreign
banks. Some neighbor countries with less populations and GDP
have more than a double number of Saudi banks. Foreign banks
branches working in Saudi Arabia have limited operations due
to their selective strategy of clients and limited number of

branches which mainly one, two or three branches and only at
major cities.
The outperformance of Islamic banks may refer to religious
spirit of Saudi people disregarding the benefits and services of
both types. Muslim people feel comfortable when dealing with
Sharia-compliant financial services specially when there is no
significant difference,
References:
· http://www.sama.gov.sa/ar-sa/Pages/default.aspx
· https://www.tadawul.com.sa/wps/portal/tadawul/home/
· https://www.alawwalbank.com/en/personal
·
https://www.sciencedirect.com/science/article/pii/S2214462518
300410
· https://greyhouse.weissratings.com/
· https://www.alawwalbank.com/en/personal
· https://www.alrajhibank.com.sa/en/pages/default.aspx
· https://www.investopedia.com
· https://www.ffiec.gov/
Return on Equity Comparison
ROE Islamic
43465.043100.042735.042369.00.1397440968155120.11945881
05196250.1141199210917340.135531673428814ROE
Conventional
43465.043100.042735.042369.00.1136649720873390.11152139
09759130.1062558646417630.130883641254974

ROA Conven/Islamic
2018.02017.02016.02015.00.272032830544210.3000657280442
730.2930631488023920.300007449080583
ROE Conven/Islamic
2018.02017.02016.02015.00.8133794176465120.933555176807
9220.9310895383142690.965705196016186
Return on Assets Comparison
ROA Islamic
43465.043100.042735.042369.00.06266060911037210.0566287
1371718070.05141202647282360.0595037454339582ROA
Conventional
43465.043100.042735.042369.00.01704574285991880.0169923
3620975650.01506697036443760.0178515668783822
4
The National Commercial Bank (NCB) and Riyad Bank have

announced that their board of directors decided today to start
preliminary discussions to study the merger of the two banks.
The two banks said in official statements on the "Tadawul" that
entering into these discussions does not necessarily mean that
the merger will be between the parties.
They pointed out that if the merger is agreed, it will be subject
to the conditions and approvals of the concerned regulatory
authorities in the Kingdom and the approval of the
extraordinary general assembly of both banks.
The two banks said they had been coordinated with the Saudi
Arabian Monetary Agency (SAMA) regarding the merger
requirements before starting these discussions, but formal
approvals are still required before the merger is completed.
NCB said the merger is not expected to result in mandatory
layoffs, and Riyad Bank confirmed that the merger is not
expected to result in mandatory layoffs.
The bank said that any upcoming developments will be
announced in due course, and shareholders will be informed of
any further developments in this regard.
According to the data available in the figures , if the merger
between the two banks will result in the largest bank in Saudi
Arabia with assets of up to 685 billion riyals.
The two banks share three major owners:
Public Investment Fund : It owns 44.29% of the National
Commercial Bank and 21.75% of Riyad Bank.
2 - Public Pension Agency : It owns 10.26% of the National
Commercial Bank and 9.27% of Riyad Bank.
3- General Organization for Social Insurance : It owns 10% of
National Commercial Bank and 16.72% of Riyad Bank.
The following table shows the most important items of the
balance sheet of the two banks by the end of the third quarter
2018:
Budget items by the end of the third quarter 2018(billion riyals)
Ahly
Riyadh

the findings
459.08
225.97
Customer Deposits
325.46
159.24
Net loans
268.25
145.76
capital
30.00
30.00
Shareholders' equity
55.50
36.75
SABB and First Bank signed a binding merger agreement on
October 3, 2018, under which they agreed to take the necessary
steps to implement the merger and form the third largest bank in
Saudi Arabia.
Running head: E-Government & Health Services: Case of Saudi
Arabia 1
E-Government & Health Services: Case of Saudi Arabia
10
Research Plan
E-Government & Health Services: Case of Saudi Arabia
Student’s Name
Institution Affiliation

Abstract
Like never before, most of the governments across the globe are
implementing e-government to improve service delivery, time-
saving, cost reduction as well as increase effectiveness and
efficiency in various sectors. E-government utilizes the
available information and communication technology (ICT) in
the process of delivering public services to the citizens. In fact,
the government of Saudi Arabi continues to attach high value to
the concept of e-government as one of the core or top priority.
The government of Saudi Arabia believe that e-government has
the potential to allow fundamental change in health sector while
utilizing ICT. In this case, the current research will explore e-
government in the health sector, and how government initiatives
such as e-health will directly affect the lives of citizens,
especially patients regarding service delivery. The core
objective of the current research is to investigate and illustrate
some of the e-government benefits with the focus on e-health
initiative in Saudi Arabia. More so, the current study aims at
investigating challenges and opportunities in the process of
implementing e-health system in Saudi Arabia. Results of the
current research investigation may contribute to Saudi Arabia
policy guidelines to ensure the successful implementation of e-
government in health sector. The current research will be
presented in various sections including introduction, literature

review, methodology, data collection and analysis, as well as
discussion and conclusion.
Keywords: E-government, public service delivery, e-government
benefits, e-health, information and communication technology.
Table of Contents
Abstract2
Acknowledgments4
Introduction4
Statement of problem5
Purpose of the Study6
Research Questions/Hypothesis6
Part 1. Literature Review7
Chapter 1. E-government at Global Perspective7
Introduction7
I.E-governance Concept in General7
II.E-governance advantages in general7
III.Challenges in General7
Conclusion7
Chapter 2: E-government Status in Saudi Arabia7
Introduction7
I.The Digital Transformation Initiatives and National Vision
20307
II.Benefits of e-government.8
III.Society Understanding of e-government.8
Conclusion8
Chapter 3. E-government in health sector in Saudi Arabia8
Introduction8
I.E-health status in Saudi Arabia8
II.Benefits of E-health8
III.Barriers to E-health8
Conclusion8
Part 2. Empirical study9
Introduction9

Chapter 1. Methodology9
Chapter 2. Discussion10
Discussion of results10
Implications and limits10
Conclusion10
References10
Appendix10
Acknowledgments Introduction
Today, the advancement of ICT and the use of World Wide Web
continues to provide several communication opportunities for
governments across the globe. In their research, Al-Khateeb,
Faloudah, Bahumayd, & Zafar (2015) highlight that e-
government presents a paradigm shift when it comes to the way
public services are delivered. Governments use the advancement
of technology and ICT in particular as the core driving factor of
change in public operations. In fact, Al-Khateeb et al. (2015)
allude that the government of Saudi Arabia has already
embraced the idea of e-government in various sectors. On the
same note, F.El-Sofany, Al-Tourki, Al-Howimel, & Al-Sadoon
(2012) paint that e-government is creating a fundamental change
in the approach public services are delivered and at the same
time managed. In fact, same study indicates that governments
are implementing e-government in a bid to cut costs while
improving service delivery to the citizens. F.El-Sofany et al.
(2012) revealed that e-government was first introduced in
public service as early as in the 1990s. However, the concept
was not cleared defined and understood by experts in public
administration.
The term e-government captured the aspect of governmental use
available technology such as the internet, mobile computing and
general ICT, which have the ability to transform or bridge the
gap between citizens and government agencies. For the past few
decades, e-government has attracted the attention of many
governments including Saudi Arabia (Sarrayrih & Sriram,
2015). E-government approach is considered to be
multidimensional as it serves various functions to achieve a

wide range of goals and objectives. In response to the
increasing expectations of citizens in various countries, e-
government concept is being implemented to deliver quality
services to society (Sarrayrih & Sriram, 2015). In this case,
therefore, e-government has become a central ring in connecting
the strategy, process, and technology in the process of providing
effective procedures for public service sectors to perform their
duties in timely manner while allowing citizens to access
needed information from time to time.
In particular, the implementation to e-government, especially
utilization of e-health in health sector has a great impact on
improving healthcare practices and development in the society.
In their study, Uluc & Ferman (2016) assert that e-health covers
a wide range of concepts including telehealth, use of electric
health records, mobile health to mention but a few. In this case,
the current study investigates major transformations brought
about by e-government implementation in Saudi Arabia while
assessing, benefits, opportunities, and challenges in health care
sector.Statement of problem
Today, many governments in the Middle East including Saudi
Arabia, have embraced the concept of e-government. In fact,
research indicates that countries such as Saudi Arabia have
undergone tremendous transformation driven by information
technology (Sarrayrih & Sriram, 2015; F.El-Sofany et al.,
2012). The government of Saudi Arabia is being affected by e-
government transformation for achieving the vision 2030
initiatives, and it has changed people's expectations in one way
or the other. Much as previous studies paint a clear picture on
the substantial advancements in the implementation of e-
government in Saudi Arabia, the current study aims to
investigate the current state of e-health initiative and its role in
transforming health sector regarding service delivery. In this
case, it is important to explore the advantages of e-government
to the society, economic benefits to citizens in Saudi Arabia,
benefits to the government institutions as well as challenges
emerging in the processPurpose of the Study

Purpose of the current study is to investigate the advancement
of e-government and its role towards health sector in Saudi
Arabia. In particular, the study will investigate challenges and
opportunities in the process of implementing e-health system in
Saudi Arabia. In this case, the researcher will explore a wide
range of factors that enable policymakers in Saudi Arabia to
develop better strategies in the process of transforming the
country with the implementation of e-government. In this
context, the researcher will explore how e-health is significant
when it comes to public service delivery in health sector, and
how such improvement helps citizens to access better services
effectively and efficiently. Most importantly, results of the
current investigation will contribute to the available guidelines
to policymakers in Saudi Arabia and other countries while
highlighting factors that facilitate or hinder the success of e-
government in the country. Research Questions/Hypothesis
In an attempt to achieve the core objective of the current study,
the researcher will try to answer the following questions.
· What is attitude of Saudi Arabian citizens towards
implementation of e-government programs, and e-health in
particular?
· Does implementation of e-health improve the workflow and
quality of health care services in Saudi Arabia?
· Does the implementation of e-government concept contribute
to increasing the quality of life for the society in Saudi Arabia,
if yes, how? If no, why?
· What is the current status of e-government in Saudi Arabia?
· How to develop the e- government systems in advancing the
quality of services to the citizens in general and for health
sectors in particular? Part 1. Literature Review Chapter 1. E-
government at Global PerspectiveIntroduction
I. E-governance Concept in General I.1. the world moves
toward digital transformation I.2. different practices of e-
government around the world

II. E-governance advantages in general II.1. improved
efficiency, cost reduction and time saving II.2.less bureaucracy
and e-participation II.3 better communication facilitating among
governments, service providers and consumers, and e-users
III. Challenges in General III.1 limitation of governance:
corruption, privacy problem, and budget. III.2 lack of equality
in infrastructure of technology II.3 false sense of transparency
Conclusion Chapter 2: E-government Status in Saudi Arabia
Introduction I. The Digital Transformation Initiatives and
National Vision 2030
I.1. the role of Minister of Communications and Information
Technology
I.1.2. the evaluating program for e-services
I.2. e-Government Website Accessibility
I.3. Models used
I.4.The processII. Benefits of e-government. II.1. Economic
benefits to citizens II.2. Benefits to the government
institutionsII.3 Benefits to the region III. Society Understanding
of e-government. III.1. Cultural Impact on e-servicesIII.2.
Citizen Participation II.3. Transforming Service deliveryII.3.
Corporation between the government sector and private sector
Conclusion Chapter 3. E-government in health sector in Saudi
ArabiaIntroduction
I. E-health status in Saudi Arabia I.1. Description e-healthI.2.
MOH facilities and services in Saudi Arabia? (Applications,
systems that used) I.3 Electronic Health Record (HER)
II. Benefits of E-health II.1. Benefits to physicians II.2.
Benefits to patients II.3 Benefits to management
III. Barriers to E-health III.1 Organizational Barriers III.2
Behavior Barriers III.3 Information and Communication
Barriers Conclusion Part 2. Empirical study Introduction

Chapter 1. MethodologyResearch Design.
Quantitative research methods will be employed in the current
study……Sampling.
In a bid to have a random sample of the current study, the
researcher will select random participants include e-services
users, physicians, service providers and consumers as
administrators and in Saudi Arabia.
Instrumentation III.1. Instrument: The researcher will carry
out a pilot study before the final survey is done III.2.
Instrument: The researcher will use questionnaire to collect data
from the target population III.3. Instrument: The researcher
will carry out monkey survey and distributed through WhatsAPP
tools due to limitation of time interviews from the sample
population to get in-depth response Data collection & Analysis
Procedures
· A questionnaire with closed and a few open-ended questions
will be drafted
· The researcher will get consent from the sample
· Questionnaire will be distributed among the sample size.
· The researcher will sample 80 respondents from many sectors
in Saudi Arabia.
When it comes to data analysis, the researcher will take several
steps. First, the researcher will analysis descriptive statistical
data collected from respondents. Tables will be created for
responses to each question. Second, the study
questions/hypothesis will be investigated. The researcher will
investigate the relationship between research
questions/hypothesis to the findings.Chapter 2. Discussion
Discussion of resultsImplications and limitsConclusion
References
Appendix
Questionnaire
Thank you

1
Impact of digitization on the banking sector-A case study of
Riyad
Bank
Research Paper by Dr. Puja Sunil Pawar and Ms. Maha Al-
Raddadi
Declaration
This Research work is a combined effort and work of Dr. Puja
Sunil Pawar and Ms. Maha Al-
Raddadi under the group Research work in Economics
Department in college of Business
Administration, Princess Nourah BintAbdulrahman University,
Riyadh, KSA

Dr. Puja Sunil Pawar is Assistant Professor in Department of
Economics in College of Business
Administration, Princess Nourah Bint Abdulrahman University,
Riyadh, KSA
Ms. Maha Al-Raddadi is Lecture at Princess Nourah Bint
Abdulrahman University,
Department of Economics, Imam Mohammad Bin Saud
University, College of Economics
and King Saud University at the Center for Training,
Community Service and Continuing
Education Certified International and Local Trainer.
2
Acknowledgement
We deeply thank the Almighty for guiding us always
We acknoweldge our research work to the Economics
Department of Princess Nourah

Bint Abdul Rahman University and to the Head of our
Department Ms. Haifa and
Research Head Dr. Abeer for supporting us gather required data
from respondents
within College. Also ,we would like to thank all the respondents
and staff of Riyad
bank to support us by providing true and timely information for
our research work
Also we would like to thank Husband of Ms. Maha who is
working with Riyad Bank to
provide us with useful data
3

ABSTRACT
Digitization is the conversion of data into a digital format with
the adoption of technology.
Adoption of digitization is very important for the banking
sector. By embracing digitization,
banks can provide enhanced customer services. This provides
convenience to customers and
helps in saving time.
The importance and Impact of digitization in Banking Sector
needs attention so as to
improve the banking sector services and satisfaction for its
customers and thus overall
e banking sectorimprovement in th
Riyad Bank is one of the oldest and reputed bank with large
number of customers in the
Kingdom of Saudi Arabia Therefore, we consider the case of
Digitization in Riyad
bank under our analysis. It is capable to represent the overall
impact of digitization on
the banking sector inKSA

This study aims primarily to clarify the complementary
relationship between" Quality of
interbank digital services" and Customer Services and how to
attract them and Customer
Satisfaction with Bank Services.
100ey and questionnaire method is used to obtain data. More
than Surv respondents were
met for theirfeedback on digitization services of the bank.
Respondents were also
employees of the bank and both new and old customers
logy, survey questionnaireKeywords: Digitization, impact,
techno
4
1. INTRODUCTION
1.1Introduction

Digitization is the process of converting data into digital
format. Digitization means the
adoption of technology. Digitization is not an option for the
banking industry, rather it is
inevitable because every industry is being digitized and banking
sector is no exception.
By embracing digitization, banks can provide enhanced
customer services. This provides
convenience to customers and helps in saving time. Digitization
reduces human error and
thus builds customer loyalty.
Today, people have round-the-clock access to banks due to
online banking. Managing large
amounts of cash has also become easier. Digitization has also
benefitted customers by
facilitating cashless transactions. Customers need not store cash
anymore and can make
transactions at any place and time
The importance of banks in economic activity is one of the main
pillars of the national
economy, where commercial banks play an important role in
facilitating economic
transactions and financial transactions. Commercial banks play
an important and prominent

role in financing both private and public investment operations
In addition to its acceptance
of private and public sector deposits and its direct contribution
to the purchase of shares and
shares in local companies, issuing the lists of founders of new
industrial companies and
participating in the purchase of certificates of deposit, bonds
and locally issued loans,
commercial banks play their primary role in financing
investment operations through the
national economy Credit facilities and bank loans for all sectors
operating in the country.
Banking institutions in Saudi Arabia have begun to invest
heavily in the latest IT solutions to
facilitate services to their customers and reduce the cost of their
labor. Smart banking has
become an important sector that generates returns year by year.
In view of the importance of the role played by the banking
competition in the development
and activation of the banking sector in the Kingdom, we wanted
to shed light on this search
for the status of competition between Saudi banks with respect
to digitization, especially,

Riyad Bank.
5
1.2 Objectives of the study:
This study aims primarily to clarify the complementary
relationship between" Quality of
interbank digital services" and Customer Services and how to
attract them and Customer
Satisfaction with Bank Services.
It also seeks to achieve the following objectives:
* To define the concept of digitization and its importance in the
banking sector
* Understand the importance of quality services to customers
Analysis of the quality of digitization using banknotes *
* To make recommendations in this regard to the relevant
authorities.
1.3 Hypothesis of the Study states that-

1. There is a significant statistical impact on the level of the
importance of the total marketing
of digital banking services.
2. There is a significant statistical impact at the level of
importance to the benefits of customers
from the use of banking digitization.
3. There is a significant statistical impact on the level of
importance of improvement in the
marketing of digital banking services.
The importance of this study stems from the fact that it aims at
shedding light on how to exploit
the science of the quality of digitization in the marketing of
banking services, which
constitute the backbone of commercial banks in a highly
volatile competitive environment
that changes from time to time.

6
2. REVIEW OF EMPIRICAL LITERATURE
2.1 of literature Review
The banking sector is one of the most stringent and quality
economic sectors in terms of
accuracy of work and output, which is aimed at the new vision
in terms of focus on quality
in general, and banks will not find it difficult to shift to the new
national plan that will be
reflected on the business sector.
Recent studies by PricewaterhouseCoopers (PwC) and Ernst &
Young indicate that customers
in the Middle East and North Africa region prefer to deal with
banks that offer digital
banking services In addition, the digital banking sector faces a
number of challenges,
including: examining the impact of technology integration in
banking operations, setting up

regulations to protect banking across machines, balancing
customer satisfaction on the one
hand and maintaining honesty and accuracy in relation to On the
other hand
In general, the past two centuries witnessed big waves of
development and revolutions among
all sectors including the technology, social, political and
economic. Within the economic
sector, the banking industry stands out among many industries
and activities due to their
effective role in accomplishing the economic desired growth
rate and for its commitment in
progressing economic improvement. Since the technology
revolution impacted everting
from the individual lifestyle, up to the work techniques; the
banking industry was not
isolated from its impact. Therefore, the banks adopted new
strategies to utilize the new
technology trend in a way that bring customer and reduce the
operation costs to the
minimum (Al-Jabri & Sohail, 2012)
Consequently, the digitization evolution affected the methods
used by banks in delivering

services, to be more innovative and convince to customers (Al-
Husem&Sadi 2015).
According to Al Ajmi (2010) m, the banking services go
through many development phases
in order to shift from the traditional banking activates to be
fully digitized banking.
7
As a result, technology revolution has urged banks to resort
easy techniques that do not require
a lot of effort and time to be executed by customers (Awan,
2016). For that reason, but by
moving banks rapidly to be more electronic than traditional in
their services, the banks
invested huge amounts in their infrastructure and technology to
be more innovation in the
provision of services and expanded customer service (Saleem &
Rashid, 2011).
A recent development to saving money may be the development
from calming vendors giving
web-based organization towards oneself innovation. This
transforms the connection between

banks and their customers starting with bank client confronting
disappointments and outrage
on staff, and calls focus agents towards robotized internet-based
channels, and in the same
time administering most of the services of the client. This
promotes more potential funds
and efficiencies same time hypothetically moving forward
customer service, with giving the
bank staff opportunity ready on concentrate on higher value and
additional customer specific
inquiries ( beaglieri&Karmarker, 2014)
A developing technique for paying through electronic channels
that originated under punctual
utilization by 2002 might have been the utilization of payroll
cards that functioned a whole
lot a credit or debit card: a bank might post an employee’s
paycheck of the account,
frequently issued by visa or Mastercard. Towards late 2003,
exactly 14 million families
utilized such instruments, essentially making them “unbanked”
as those acts went on a
chance to be known (“global financial development report,
2014)

As that amount and kind of electronic fiscal transactions
increased, that more weight there
might have been to acknowledge electronic marks. Previously
routes legitimately worthy as
tying and as secure concerning illustration marks on paper.
Therefore, the central board
advocated implies to decrease that number for paper checks due
to their huge expense. In
October 2003, Congress passed and the president marked under
law, the check transaction
act which went under impact in October 2004 (Wilson, 2015)
This enactment constructed it lawful for banks will clear checks
electronically by sanctioning
advanced images along the lines. Hosting should exchange
paper checks go of the banks for
inception or aggravate banks secure agreement with other banks
and association on do that
fill in.
8
The national reserve, hosting noted the quick build to

electronic transactions, which reach
fivefold in the past decades should be precise. moreover, it is
expected that in 2004 these
might surpass the number from claiming paper checks and
therefore needed on keep on
going pressing for that only the tip of iceberg efficiency of the
electronic
transactions(Wilson, 2015)
The industry is changing as new internet- based entrants
identify niches and supply
extraordinary services, bringing new esteem should customer
same time old fashioned
accepted benefits of the business models have disappeared
(Christensen, 2003) this is result
for the following reasons:
1. The web helps expense reconfiguration as it facilitates
expense control and methodology
reconfiguration by fill in elimination worth of effort shifting fill
in avoidance, and worth of
effort sharing, web-centric contract frameworks lesson worker
preparing costs, would
simpler with navigate, and furnish simpler get will create
database over customary

frameworks.
2. The internet facilitates self-service: universal web access
coupled with ongoing technologies
gives shoppers for a chance to entry or overhaul majority of the
data towards at whatever
time and from anyplace. This diminishes the interest of client
administration divisions.
Consumers could also perform additional perplexing
interactions for example ascertaining
credit payoffs and deciding upon what amount of extra
installment to vital will be required
should qualify to contract protection conciliated.
3. The internet can enhance revenue by permitting
administration suppliers to cross sell
refinance and seek after other revenue generating chances.
4. Asset/ Risk oversaw economy will be enhanced through web
connectivity as information
can a chance to be communicated seen and imparted once an
immediate ongoing support
(Jiju Antony, 2006)

9
As confirmed by Mahdi (2011) among the service sectors the
Saudi banks come as first when it
comes to utilize technology in offering their banking services to
their customers. Therefore,
the entering of the internet to Saudi Arabia Coincide with the
Saudi banks decision to co-
exist on the internet and offer their banking services remotely.
Hence, they are progressively
considering the banks internet website as second deliver
channel for their services. In view
of that the banking sector went to invest in the latest technology
to deliver an innovation
banking service. Thus, the Saudi banks come at the top of the
developed banks as they use
the technology to serve their customer virtually instead of the
need to their physical preset at
branches (Mahdi, 2011).
2.1 Advantages of digitization in Banking sector
Digitization in managing an accounting industry intends settling

on banking smooth birch and
consistent for those clients. The technology used need that
possibility to the table security
reductions to its clients also make it helpful for clients who in
with consolidating different
capacities onto you quit offering on that one handheld gadget.
Making transactions cashless
brings about controlling bootleg cash and thus makes everyone
transaction responsible.
In the late years there may be an outstanding drop in utilization
of extensions and enormous
expansion over advanced saving money utilization. Most of the
private banks also general
population segment banks are centered looking into putting
forth new technology-based
benefits in its clients like portable banking applications and e-
wallets. The greatest focal
point from claiming advanced channeling on saving money will
be its capacity of providing
new propositions an client’s particular business models by
dissecting this saving money
example which investigates the client worth of the greatest.
Nowadays, creating a digitization environment is now the
priority of all banks and they need to

devote a considerable budget for a full transformation to a
completely digitized circle of
consumers. Today banks have the capacity should identify test
those putting forth will an
expensive degree. They could make an advertising the lifestyle
a client needs should see it
om the gadget that he needs should see it and at once that’s,
most advantages to him. In
addition, it should be conceivable best in view mobile analytics
and advanced interface
would meet.
10
This permit banks in enhancing the correspondence with the
client to such a degree that they
have the table a secondary level of customization. Thereabouts
advanced will barely
confined of the front-end interface.
Advanced innovation might have been the primary carriable to
expanding unemployment in the

state funded private parts for southern European nations, for
example previously Greece the
development of he advanced television systems together for
those mastery from claiming
advanced innovations. On the whole saving money services is a
prone on prompt a expand
of unemployment not main in the conventional public-service
TV organizations as well as in
the banking sector. A considerable measure for people will
make losing their employments
because of that digitization from claiming banking television
and telecommunication
association in global free market economics.
Much appreciated to digitization organizations over commercial
enterprises would race with
move keeping “analog” methodologies with customers products
services and working
models should an always-om real time and data rich commercial
center. Some authority is
redesigning their abilities and operating models with make full
point of advanced
innovations will keep step for those connected purchasers and
draw inability. Other are
making qualitatively new benefits of the business models and

enormous worth around
disruptive advanced chances. Over finishing so these
organizations secure not just begun
and Johnson had preceded relevance as well as unrivaled returns
(Baglieri&Karmarkar ,
2014)
2.2 Digitization Philosophy
The digitization can be described as the innovation through
utilization technology information
(Nambisan & Lyytinen & Majchrzak & Son, 2017). The
digitization revolution has opened
the door for new level of products and services which are totally
different from the old ones
in nature and structure (Miranda & Young &yetgin, 2016) the
past 20 years shows that the
digitization become a fundamental in all life style and work
environment and had big impact
on the banking industry. Accordingly, the companies and baks
utilized the digitization
development in the interaction methods with customers
(Cummingham& Young &Gerlanch,
2008).

11
In general all the banking organizations new and old are
maintaining their place in market by
adopting new technologies changes and experiences (
Kashmiri& Semenov &Ostrovskaya&
Kokuytseva,2016).
Digitization has influenced almost each industry during as far
back as a decade. The
phenomenal pace in which technologies spread and infiltrate
society , distinctive life, and
organization particularly puts experienced organization at risk
inside the car industry,
digitization acquires new players to the table ( Cortada,2006)
Thus , this shifts the
mechanical transformation keep tabs starting with physical
should IT empowers clients
should get their involving seeing for mobility and makes them
at any point all the more
profitable hotspot for data. Moreover, digitization influences
the worth production
methodology and emphasizes the vitality of multilateral cross

company cooperation’s
Digitization is a process of converting anything into digits (one
and xeros) make it digital. The
thing here could be analog data, logs, description about some
things. Let’s say, equipment,
its location, attributes etc. so anything description of any
information available in papers
hard copies etc. Concerting them into digital format is called
digitization. Converting hard
copies, at the end of this process we build a huge collection of
digital resources. These
resources could be built by converting existing analog resources
in the enterprise into digital
format and as much as possible encouraging thereafter creation
of new data by the enterprise
in the digital format itself (Jens Froslev Christensen, 2003).
So, we have built huge collection of digital resources. How are
we going to manage this huge
amount of data and more importantly what we are going to do
with this? the answer is
“Adopt Digitalization”.
With recent advancements in IT technologies, there are tools
and techniques now available to

manage and process huge amount of data , the digital resources
that we built through
digitalization process. With the right techniques and vision in
place it is possible to extract
useful information from those digital resources. This has opened
new opportunities to
expand the existing applications/ process to make use of the
huge amount of digital
resources and thereby improve their efficiency.
12
There are proofs that business were able to use such
technologies to mine the digital
information they have, could change the way existing processes
work and finally could
improve the business. In a sense they evolved their business
model by using recent
advancements in IT, it became a general strategy now for any
industry. This is what we can
call digitization. More formally, digitization is the strategy of
adopting recent technologies

in IT to make the most of the digital resources available in the
enterprise (Weiss & Schade
&Riedl& Matt. 2016)
Policies need to aim for overcoming the dormancy from
claiming obliged regulates re-
organization by encouraging that improvement of the
foundation. Also, nonexclusive
administration layer and to reinforce and will aid the
digitization for data streams and
interchanges forms within the parts or most of the data social
order. Such advancement
methodologies will incorporate the greater part stakeholders
about the data culture like
public sector private segment and general society and a pleasant
dream needs on aide the
specific social order looking into its exceptional way under the
umbrella of the digitization
(Anshuman Khare, 2016).
2.3 Effects
How a single technological innovation, the introduction of the
image transforming for cheques
prompted uniquely separate transforms into the structure from

claiming occupations to two
divisions of a substantial bank. In the store transforming
department image transforming
prompted the substitution for PCs to high roller instructed labor
I am accomplishing center
errands and over more excellent specialization in the
occupations that remained raising the
plausibility of outsourcing and progressions in the area about
certain parts of the operation.
For an additional section which are the exceptions processing
image transforming prompted
the coordination from claiming tacks for a cohort increments in
the request for specific skills
and with an in general 28 percent decrease on work information.
13
Accordingly, managing an accounting industry recommended
that digitization and the internet
are evolving the locus and association of bank services. They
also propose that those

fundamental beneficiaries are less adverse will make the
customers not those banks (Koo
&Wati& Chung, 2013)
By 2000-2002 , it required turned into very clear should
banking executions, industry watchers
legislature regulators and economists that the electronic
conveyance for services by banks
might have been much less exorbitant over were prior
techniques and they also knew that
extra electronic benefits were both expense successful and
magnetic will clients ( Ivan,
2012) issues concerning those internet cashless checks thus
focused on the key issue for how
best with aggravate electronic installments. Clients now caught
on the points of interest of
the digitization also. For example, concerning illustration bank
fees rose to taking care of
payroll checks, organizations started reestablishing their
emphasis that workers accept
immediate store from claiming payroll checks.
The banking industry served as the vital financial foundations
of the country for almost around
half of the twentieth century (Ivan, 2012). The same time that

pre-eminent position is no
doubt tested by different budgetary commercial enterprises in
the new millennium the
managing an accounting induatry need to stay one of most
essential inside the economy.
It is also the one business that the majority dramatically
illustrates the thing that is a developing
set of hones and example in the benefit parts of a profoundly
digitized economy of the future
(Kliedere&Jurgelane, 2016). The experience for this industry
shows us in any event three
lessons. In a great part of claiming its worth of effrt lends itself
will computerization. Since
its inventory will be ure information or just coins and all its
paper ephemera lend itself to
digitization. To different commercial enterprises for
comparative characteristics,
computerization turns into am overpowering energy with make
figured with a direct result
registering is quick cheap and can handle expansive volumes for
transactions.
Second, once putting forth will be digitized and might pick
separated a rival’s offerings to
recombine with the individuals generally for one’s portfolio

should make new products, new
focused advantages, considerably new organization and
commercial enterprises.
14
Those managing an account industry might have one of the
principals in the American
economy should knowledge this. That wonder alone displays
inquiries regarding how those
economy of the united states could develop in the following
century(Cortada, 2006)
Third, the case for digitizing demonstrated thus forcing that this
industry might have been
capable will move from a pre-computer style for operation to
particular case that we can
currently bring those advanced style essentially inside vocations
from claiming one era from
claiming financiers( Ginsburg,2016) new budgetary results
would not patent there will be no
copyright in the bank benefits of the business. As a rule,
therefore, an aggressive preference

of the organization against the new results in that budgetary
table that formed them in a short
occasion.
The user of such a capable infrastructure which is
incomprehensible only five years ago must
make profoundly machine proficiently, by quit offering on that
one can’t excessively often
anxiety the necessity for computer literacy over treasury
operations.
Such utilization of propelled innovation will be a long way
starting with secret word
approaches which basically tendered to themselves of the once
more offices, regardless of
they needed little victory previously, mechanizing them
(Chiou& Shen, 2012). it
additionally includes new configuration ideas exemplified by
image transforming systems
optical disks outline automation and different propelled usage.
The introduce will be as takes
after it might detect locate and underwrite once business sectors
trends afterward, we will
addition an aggressive edge. Moreover, the globalization and
increasingly demanding clients
have influenced the edge from claiming saving money

institutions, requiring greater amount
productive operations with easier costs (Aswan,2016). Forcing
consolidation off-shoring or
other scoring likewise practically banks now work in different
continents and outsourcing in
a request to decrease expenses and with expanding revenues.
15
2.4 Customer satisfaction
Service is a process that fulfills the client desire the
administration supplier should elucidate the
thing that the client desire may be in front of beginning those
methodology (
Akinyosoye&Gbadeyan, 2011) Furthermore at the same time
should affirm the client
imperative et cetera start finding the ideal outline result
procedure to the client , clinched
alongside true service. However, the transform begins in the

recent client imperatives would
elucidate and by the end the administration suppliers adjusts the
outline answer for each the
best fulfillment of the client the result frequently turns out to be
a tradeoff between those
client and the administration supplier.
What’s needed is the pervasive selection about digital, real time
and networked technologies
products and administration through interconnectedness
frameworks and gadgets (
Kliedere& Jurgelane,2016). In the securities sector digitization
concentrates on delivering
ways abilities for example self-service ongoing information and
analytics enormous data
enabled learning and streamlined special case administration
crosswise over those magic
ranges from claiming input processing output also framework.
The aggregate and planned
configuration of advanced techniques over endeavor will define
that organization’s
innovative standpoint.
Valid digitization is significantly more than negligible
automation as its must incorporate better

approaches of acquiring processing and acting on
incomprehensible measures for
information (Kashirin& Semenov &Ostrovskaya&Kokuytseva,
2016). Securities services
showcase vendors furthermore utilities require entry should
bigger information sets on
assistance uncover new advertise opportunities client’s trends
and item possibilities.
Administration bodies on the other side oblige transparency and
have information that is
receptive and streamlined crosswise over the endeavor. This
previously turns makes a
requirement for solid analytics to territories about example
matching and relationship and
information mining should uncover market and client needs.
16
The organization need to have a guarantee in place about
digitization organization must have an

advanced interface include input outputs that could associate
with outside stakeholders that
counting clients administrative bodies, vendors, outer
administration suppliers and the
Markey with negligible humanity’s backing (Ivan, 2012).
Customers could power this
organization towards oneself stage will get different digitized
items and administration
offerings and the sum of these competencies must be
constructed once a resilient, scalable
and dependable advanced base. Making such an environment
obliges ventures over
foundational innovation such as cloud building design also
single source information
repositories will backing these advanced offerings. Thus
adoption of electronic banking
functions and representative access and comfort and security,
privacy and content and
design spped fees charged for services has a significant positive
impact on the customer
satisfaction loyalty and reputation (Saleem & Rashid, 2011).
2.5 Competitive Advantages
The emergence of these development and global changes led to

the creation of great
competition challenges between banks. The electronic
application increased in a large and
consistent manner with the competition between banks and the
speed of development of
electronic software and communication networks. This
development of banking services and
keeping pace with the successive electronic development in the
banking industry. And
attention to the quality of services and customer satisfaction is
one of the main approaches to
increase and improve the competitiveness of banks which
contributes to increase the bank’s
competitive ability to face the threats posed by developments
economic and electronic
(Omari, 2012). In addition, e-banking services contribute to the
competitive advantage by
increasing the efficiency and effectiveness of the service
offered.

17
Many researchers have tried to shed light on the impact of these
different electronic banking
services on achieving competitive advantage. The study
conducted by Sohail and AL-Jabri (
2014) on the role of marketing innovation and technology in
achieving the competitive
advantage of banks from the point of view of clients suggests
that banks that follow the
technological and marketing innovation in a good way achieve a
competitive advantage in
general and the study indicates that there is satisfaction by
customers when banks seek to
spread ATMs and thus reduce waiting time for the customer. In
addition, the electronic
banking services play vital role in enhancing the competitive
advantage in the banking
sector as it was found that using the latest electronic means of
practicing banking and
increasing the customer’s link to the bank through electronic
business enhances the
competitive position of the bank. Therefore, banks can win the
game of competition and

monopoly of the land through the digitization.
2.6 Services
Imaging software and hardware tolerance photography for
checks and other vouchers evolving
the pictures under an advanced stream will be put away in and
retrieved starting with optical
plates (iris imaging software may improve accuracy of
centration with toriciols, 2009).
These advanced pictures might be transmitted down fiber-optic
cables for transforming and
switched around the clearing framework through those robotized
clearinghouses worked by
the central bank board.
The volume will guarantee that the measure from claiming
reserve funds may be colossal.
Security Pacific a standout amongst the top banana live check
cleaners over America
procedures a normal for 6 million checks a night. It estimates
that it might save between $25
million also $50 billion a quite a while through such
arrangement. Or more that that measure
by procuring fees through transforming benefit of the business

starting with more modest
banks that must include the table their customers a state of the
craft administration however
doesn’t have the volume for benefits of the business should
defend that investment.
18
In a confrontation with the risk of overstating the body of
evidence considering a great part of
the thing that banks di and notwithstanding do will be the same
they settle on loans hold
deposit and cash books. The distinction may be that they use
workstations thus extensively
that on the run a bank without them will be presently impossible
what are we reason starting
such a statement? concerning illustration may be happening in
the manufacturing and retail
industries the managing an accounting industry may be still on
the right on time phases from
claiming changes should a far obscure standard ( walker, 2017).

We view glimpses for it
however that is everyone in minute.
The main robust certainty will be that this business depends on
vigorously notwithstanding
once machines and telecommunications and that we might
sensibly hope its practice culture
and offering on proceeding with evolving about whether. In
light of the present to a letting
phase the best any history specialist will comment that bankers
bring not been modest over
utilizing engineering organization. They were begun and
Johnson had proceeded to stress
extensively around completing along these lines and
encountered new manifestations of
rival and transforms unanswered a half century sooner
(Ballieri&Karmarkar, 2014).
Informatization is the spine technique through which saving
money organization has innovated
their putting forth and have moved starting with customary
saving money should
nontraditional channels (Yan & Shan & Yan &Gao Tian. 2013).
In digitization need
permitted saving money benefits with being separated starting
with conventional physical

extension areas. Next an ever-increasing pattern towards those
concentrate on information
and most of the data empowers banks utilize measurable
programming analyses to tailor
their offerings to distinctive segments enhancing administration
execution and lessening
expenses.
19
2.7 Putting rapid process digitization into action
Fast procedure digitization starts with imagining an unrivaled
voyage from the client
perspective about perspective (Dame, 2016). With those
cooperation housed together done a
committed physical space the objective may be should throw
aside convectional notions
about attempting and use client information and brainpower

with reimaging the richest the
vast majority productive and captivating method for fulfilling
client necessities and desires.
Essential prototypes are at that point ushered under ongoing
client testing the place ideas
would validate refined and released clinched alongside
consistent cycles until they help
agreed upon execution thresholds.
Digitization groups quickly and continually figures out and test
their new learning all around
the improvements cycle (Lampert & Vaughan, 2009). Preceding
they nail down the last
design they audit and minimize business investment risk and
ensure that advanced activities
convey most extreme client quality.
2.8 Scaling up
New abilities should be scaled fast to v=covert at magic client
journeys. A few organization do
this methodology by the transform. the offering can be quit on
that one bank to the instance
organics its rapid digitization groups by theme one meets
expectations looking into at
journeys and items identified with credit in turn meets

expectations around investment
products. Thus, different organization take a journey
methodology. In any case of the
approach organization searching should bring advanced
activities with scale must establish
clear norms and execution measurement. In this way the thing
that may be scholarly is
assembled and communicated reliably so as with ceaselessly
enhance system. Scaling also
obliges the human resources capacity should make actively
involved since most associations
will face holes. On basic advanced ability sets a significant
number of which are of high
interest.
20
The entire idea of hyper personalization will be the main setting
off with getting conveyed
through advanced. For example, based on the provide

information about customer it bring
situated for client majority of the data from as much transaction
self-destructive
considerations and conduct the classifications will be known to
which group income profile
and so forth utilizing analytics could aid the pertinent offerings
in the manifestation of a
preapproved credit. Moreover, the client profile and depend on
the activities through online
networking. By having the ability with figure out that the client
will be arranging with a try
on get away. Thereabouts in a client is sharp once a universal
get-away and he is asking for
travel suggestions ahead online networking and going by going
sites the doors is open to
connect with him in offer him the pre-endorsed credit the table.

21
3. METHODOLOGY AND DATA
3.1 Population of the Study:
The population of the study represented in people live in Saudi
Arabia, but due to the large
community in the light of the restrictions of time and effort, the
study will be limited on the
residences of "Riyadh" city, because it is the capital and the
most population in the country.
3.2 Sample of the study:
The study population consisted of clients of the commercial
bank in the kingdom of Saudi
Arabia. A random sample of 100 persons was chosen as a study
population. Table (1) shows
the characteristics of table 1

Distribution of clients of bank under study by the personal
variables
Percentage Categories of variables Variable
58% Male Sex
42% Female
28% 18-24 years Age
17% 25-29 years
35% 30-39 years
20% More than 40 years
3.3 Research Design:
This study is based on the descriptive approach, through a
review of the administrative
literature of total quality management, and marketing of
banking services , and by returning
to previous related to the subject of the study , in addition to the
use of filed approach to try
test hypotheses of the study , and accessing to their results .

22
3.4 The data and information gathered by the questionnaire
analysis will be presented in this
chapter .Moreover the finding will be discussed through this
chapter. The questionnaire data
and information suppose to answer the Following:
1. Is there a positive relationship between achieving a
competitive advantage to the banks and
the digitization of the banking services and product the bank
officer?
2. Is there a positive relationship between customer satisfaction
and digitization of the banking
services and product the bank offer?
The research utilized a descriptive analysis and the percentage
of customer’s responses of
different segments to each questionnaire statement in order to
examine the customer
satisfaction by the digitization of the banking services and
product that Riyadh bank offer. In
addition to measure the identify the relationship between
achieving a competitive advantage

to Riyadh Bank over the other banks through the digitization of
the banking services and
product its offer.
3.5 Testing Research Questions
Based on the questionnaire question nature and the expected
range the questions will be
splatted into two parts which the first part are related to the
questions with defined group of
answers and the second part related to the questions with the
undefined open answers.
i. First part of testing Questions
The study questions can be divided into the following
categories, Participant data, participant
satisfaction and the new products or services or problems. First
part covers the two
categories of participant data and participants satisfaction. The
participant customer answers
to each question in the questionnaire are computed and
converted into percentage. The
frequency of each answer for all the first question are as
following.

23
The first question in the survey is related to the participant
gender. The first graph shows the
percentage of participant gender in Riyadh online which is 67%
female and 50 % male. The
second graph show the percentage of participant gender in the
mobile application which are
67% female and 26% male. The third graph shows the
percentage of participant gender in
ATM which is 10% female and 26 % male.
The Second question in the survey is related to the participant
age. The first graph show the
percentage of participant age in Riyadh Online which are 55%
of the age from 30 to 39, 52%
for over 40 while the age 18 to 24 and from 25 to 29 are very
low sample size. The second
graph show the percentage of participant age in mobile
application which are 19% for age
from 30 to 39. 48% for the over 40 29% for age 25 to 29 while

the age from 18 to 24 is very
low sample size. the third show the percentage of participant
age in ATM which are -16%
foe the age from 30 to 39 , 15% for the over 40 while the age
from 18 to 24 and from 25 to
29 are very low sample size.
The third question in the survey is related to the participant
segment. The first graph show the
percentage of participant segment in the Riyadh online which ae
57% from mas segment
49% from Silver segment and 48% from Golden segment. The
second graph show the
percentage of participant segment in Mobile application which
are 32% from mass segment
17% from silver segment while for Golden segment the sample
size is very low. The third
graph shows the percentage of participant segment in ATM
which are 13% from Mass
segment -7% from silver segment and 11% from Goldeb
segment.
The fourth question is reflected to the separate input for each
channel.
The fifth question in the survey is related to the participant
satisfaction. The first graph show

the percentage of participant satisfaction ib Riyadh online
which is 55% is very satisfied,
27% is satisfied, 12% is somewhat satisfied , 5% is unsatisfied.
The Second graph show the
percentage of participant satisfaction in the mobile application.
Which are 46% is very
satisfied, 30% is satisfied, 12% is somewhat satisfied, 7% is
unsatisfied and 5% is very
unsatisfied. The third graph show the percentage of participant
satisfaction in ATM which
are 38% is very satisfied, 29% is satisfied, 18% is somewhat
satisfied, 8% is unsatisfied and
8% is very unsatisfied.
24
The sixth question in the survey is related to whatever the
participant fined in Riyadh Bank
Electronic services easy to use or not. The first graph show the
percentage about if the
participant see if Riyadh online is easy to use or not which are

75% think it is easy to use
and 24% think it is not easy to use. the second graph show the
participant sees if the mobile application is easy to use or not
which are 67% think it is easy
to use and 24% think it is not easy to use. The third graph show
thw percentage about if the
participant see if the ATM is easy or not which are 54% think it
is easy to use and 7% think
it is easy to use.
The seventh question in the survey is related to Riyadh Bank
Electronic services availability.
The first graph show the percentage about if the participant see
if Riyadh online is available
or not which are 68% available. The second graph show the
participant see if mobile application or not which are 57%
available. The third graph show
the percentage about if the participant see if ATM is available
or not which are 50%
available.
The eighth question in the survey is related to the area need to
be changed in order to develop

Riyadh Bank electronic services. The first graph shows the
percentage about the areas in
Riyadh Online which are government payment by 16% Account
are Cards by 11% and
internet / Local transfer by 11%. The second graph shows the
percentage about the areas in
mobile application which are internet / local transfer by 13%
and bill payment by 12%. The
third graph shows the percentage about the areas in ATM which
are Cash deposit by 27%
government by 27 and internet / local transfer by 25%.
25
3.2.2 Second part of testing questions
The second part covers the last category participant input which
is new products or service or
problems. the answer for the remaining two questions is as

follows:
The ninth question in the survey is related to the problem the
participant is facing in Riyadh
bank electronic services and products. The problem the
participants is facing in Riyadh
online is as following:
ifficulty and sometimes the session end
without notifying the customer
although the internet speed is high.
r for
the customer as what is
happening in the payment in order to retrieve it in an easy
method.
charitable donations.
models.
The problem in the participant is facing in mobile application is
as follows:

constantly updating.
guide for reaching service is not clear.
rate during transfer.
implemented even if all the
required steps are followed.
of support to application technical issues.
The problem the participant is facing in ATM Machine is as
following:
The ATM machines do not provide all the money categories
as the other banks do.
26

The tenth question in the survey is related to the new services
and products the participant
would like to add to Riyadh bank Electronic services and
products. The new services and
products the participants would like to add to Riyadh bank
services and product are as
following:
nnels to be like it
was designed and customized
especially to each customer
activities that eliminate the
need to branch as much as possible.
n the channel
regardless or the device or the
operating system
customer to manage their busiess and
portfolio through Riyadh bank channels.
ship

manager to each customer by
studying it is behavior over the channels and offer him/ her the
most suitable service and
product with competitive prices and conditions or as a bundle
offer.
ties.
27
4. RESULTS AND DISCUSSION
4.1 Introduction
The last chapter in this study is supposed to provide a full
overview of the study and
summarizing its results. Furthermore, it will present new

recommendations for Riyadh bank
and for the further research in this field.
4.2 Overview of the study and summary of its findings
The adaptation of the digitization in banking industry and in
particular in Riyadh bank had
show big impact in creating huge amount of advantages and
benefits for both the customers
and the bank. One of the most important advantages and
benefits for digitization in Riyadh
bank is to create competitive advantage over their competitors
and achieve the customer
satisfaction. This study examines the major factors that lead to
these achievements.
Participants in this study were all Riyadh bank customers. The
total participants study is 1618
while the breakdown for the participants is as following: 658
for Riyadh online, 767 for the
ATM and 193 for mobile application. The participants age was
classified for four categories
which are 18 to 24 , from 25 to 29, from 30 to 39 and for the
over 40 years. The participants
region was classified for three categories which are : Western
region, Central region and

Eastern region. The participants gender was classified for two
categories which are male and
female. The participants segments were classified for three
categories which are normal,
silver and Golden.
The study utilized the two types of research which are
quantitative and qualitative methods in
order to perform the test of the study. Therefore, the survey is
conduct to measure the
customer satisfaction with the digitization direction of Riyadh
Bank and also to measure the
bank ability to create a competitive advantage through this
direction. The study contains 10
various questions that cover both the quantitative and the
qualitative approaches and most of
the required dimensions for the research study. Therefore,
within 10 questions there are 3
questions answer by either yes or no
,
28

There are 5 questions answer by list of defined options to
choose one of them and there are 2
questions give the customer the opportunity to give their
opinion or feedback regarding any
new service or product they would like to add it to current
Riyadh bank Electronic services
and products or any problem they are facing in the current
Riyadh bank electronic services
and products. The study questions can be divided into of the
categories: participant data,
participants satisfaction and new product or services or
problems.
Basically, the study findings reflected a positive relationship
between the digitation and the
customer satisfaction and creating a competitive advantage in
the banking industry.
Moreover, the study results showed clearly that Riyadh bank
achieved the customer
satisfaction and create a competitive advantage through
digitization approaches can be
conducted by Riyadh bank in order to achieve more customer
satisfaction and sustain the
competitive advantage.

4.3 Discussion of results
The relationship between the competitive advantage and the
different types of the electronic
banking services in Riyadh Bank Has tested through Riyadh
Online, ATMs , and Mobile
applications. In addition to examining the impact according to
demographic characteristics
like age group, segment and the result cab be summarized as
follows. First there is a positive
relationship between the bank’s offering of electronic banking
services and the competitive
advantage of banks from the point of view of customer. This
result is consistent with several
studies such as Abbad study in the Jordanian society. The
reason for this relationship is the
technological development of the world making it easy to
conduct banking operations
efficiently and easily making the customer look for the best
electronic banking services and
thus distinguish one bank from another.

29
Second, the electronic banking services provided by the bank
through the websites is one of the
most important services that customer prefer among other
electronic banking service and
this consistent with the study conducted by Chiou and Shen(
2012) , because of the
importance of respondents to the effort and time provided
through the use of the site in
addition to the clarity and ease of execution of banking
operations such as payment of
government and public payments.
Third, the respondents agreed according to their demographic
characteristic such as the age
group and segment that the electronic banking services have an
impact on achieving
competitive advantage and that they distinguish one bank from
another. This is in line with
the study conducted by Akinyosoye and Gbadeyan( 2011) which
emphasize that the

acceptance of the respondents from younger age group is higher
that other customers.
Finally the level of privacy and security is a major concern for
the majority of respondents
especially for users of electronic banking services through the
website and applications of
smart phones due to the awareness of respondents about the
potential risks of penetration
through the internet and communication networks and this is
consistent with the study
conducted by Abbad ( 2013)
On the other hand, the relationship between the customer
satisfaction and the different types of
the electronic banking services in Riyadh bank has been tested
through: Riyadh online ,
ATMs and mobile application. In Addition to examining the
impact according to
demographic characteristic like age group, segment and the
result can be summarized as
follows: first, there is appositive relationship between the banks
offering of electronic
banking services and the customer satisfaction as the adoption
of electronic banking function
and electronic banking impact on the result of customer

satisfaction, loyalty and reputation.
Moreover and this is consistent with the study conducted by
Ahmad and Al-Zu’bi( 2011)
that showed that the electronic banking adoption of
representative access and comfort and
security , privacy and content and design and speed , charges
levied on the services have had
a positive impact on the satisfaction customers and loyalty and
reputation.
30
Second, there is a need to consider the respondents personal
with regards to social and
demographic variables in order to identify the electronic
banking services on their customers
satisfaction in terms of speed, accuracy, ease of access and
convenience and this is
consistent with the study conducted by Shergill and Li (2005)
that emphasize the impact of
different characteristic of the respondents personal to their

satisfaction towards the
electronic banking service offered like the satisfaction of the
respondents from younger age
group is higher than other customers since they tend to use
technology more than older
customers.
31
5. CONCLUSION, LIMITATIONS AND
RECOMMENDATIONS

5.1 Conclusion
The current study aims to measure the relationship between the
adoption of digitization and
creating competitive advantage along with customer satisfaction
in Riyadh bank. In the light
of previous discussion, the finding illustrates that there are a
positive relationship between
the adaptation of digitization in banking sector in specific in
Riyadh Bank and creating
competitive advantage along with accomplishing customer
satisfaction.
The globalization of banking has led to the emergence of new
forms of banking which
contributed to the new development in information and
communication technology. The
digitization can bring a lot of advantage and benefits for both
the customers and the banks in
the banking industry. These advantages and benefits concentrate
in achieving customer
satisfaction and possess competitive advantage. Riyadh bank
manages to achieve the
customer satisfaction and create a competitive advantage
through the digitization.

5.2 Limitations
Due to the following limitation in the current study results of
this must be interpreted with
caution and further verification is recommended. These
limitations include several
dimensions which are human limits; location limits; objective
limits ; time limits and
hypothesis limits . the human limits are that this research is
limited to Riyadh bank
customers. The location limits is that this research is limited to
the banking sector in Saudi
Arabia. The objective limits is that this research is limited to
observe the role of the
digitation of the banking services in creating competitive
advantage and customer
satisfaction for Riyadh bank in the banking sector in Saudi
Arabia. The time limits that this
research is limited to investigate the positive relationship
between creating competitive
advantage and reach customer satisfaction through the
digitization of the banking services.

32
5.3 Recommendations
In the light of the findings of the study there is a set of
recommendations as follows:
First: recommendations for Riyadh Bank to achieve competitive
advantage and customer
satisfaction
1. Ensure security of the bank system
2. Build connection system and data between Riyadh bank
channels and government system
and other banks as well.
3. Avail the option to Customize the service and product upon
customer request.
4. Full management Platform over all the bank services product
and activities that eliminate the
need to branch as much as possible.
5. Responsiveness that enable customer to open the channels
regardless or the device or the
operating system.

6. Build a Smart Analysis that act like special relationship
manager to each customer by
studying it is behavior over the channels and offer him/ her the
most suitable service and
products with competitive prices and conditions or as a bundle
offer.
7. Conduct the most important electronic banking services at a
lower price comparing to the
service or product at branch.
8. Exploit the human capacities working in banks and their
creativity and encourage them to
initiate innovation and development in the banking and
customer service.
9. Prepare studies and periodic research on the development of
their capabilities and identify
the view of customers and their satisfaction with the services
provided to them and how to
develop these services commensurate with their needs.
10. To achieve competitive advantage m Riyadh bank must
continue to improve its electronic
banking services and ensure that these services are at
competitive price and easy to use to
meet all requirements of the customers and follows the last

development in the world of
technology.
33
Second: Recommendations for future studies:
1. Conduct studies to cover all banks operating in the kingdom
of Saudi Arabia.
2. Conduct studies to examine whether there is a difference
between Islamic banks and
commercial banks in the electronic banking services
preferences.
3. Conduct studies to examine whether there is difference
between men and women in the
electronic banking services preferences.
4. Conduct studies to cover other variables not covered in this
study like market share and
regional orientation.

34
REFERENCES
1. Abbad, M. M ( 2013) E-Banking in Jordan. Behavior &
information technology, 32(7), 681-
694 doi:10.1080/0144929X.2011.586725
2. Ahmad A.M.K & Al- Zu’bi H.A (2011) , E- banking
functionality and outcomes of
customer satisfaction : An Empirical investigation; international
journal of Marketing

Studies Vol. 3 no 1; February 2011 ; pp-50-65; ISSN 1918-
719X E-ISSN 1918-7023
3. Akinyosoye O. And Gbadeyan, R (2011) Customers
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39
APPENDIX
Measuring the Customer satisfaction with the digitalization
direction of Riyadh Bank
Your participation in this survey is available and highly
appreciated. The goal of this survey is

to measure the customer satisfaction with the digitization
direction of Riyadh Bank.
1- Gender
2- Age
– 24 years
– 29 years
– 39 years
3- Segment
4- Channel

5- On over all, how you are satisfied with the current Riyadh
bank electronic services
ery Satisfied
40
6- Are the current Riyadh Bank electronic services easy to use?
7- Are the Current Riyadh Bank Electronic services available
whenever it needed?

8- From the following list please let us know what are the areas
need to be changed in order to
develop Riyadh bank Electronic services?
orts
9- Is there any problem you are facing in the current Riyadh
bank Electronic services?
………………………………………………………)

10- Is there any new service you would like to add it to Current
Riyadh bank Electronic
services?
Acknowledgements
This dissertation would have been unsuccessful without the
material support from the
college and companies' websites. I am indebted to my
supervisor Dr. Divya Rana for her kind
words throughout the preparation of the research. She has been
supportive and ready to correct
me on various aspects regarding the paper.
Without a supportive family member and in particular my
parents and my kids: Abdul-
Aziz, Ruaa and Ahmad, for their extraordinary helpful, in fact
my career goals would have
been hard to realize without them, Additionally I’d like to thank
my husband Nemer Al -
Zahrani. I am especially thankful for his financial, social, and

psychological support during the
preparation. I would also like to thank here my friends (Reem,
Fetoon, Ruaa and Shadha) they
were friends and a mentors, and in the event of doing my
investigation, they have been there
for me. It would be unethical not to recognize my fellow
colleagues who have been there to
ensure that everything goes well. May they receive my credit as
well.
The collection of information and meeting honest and
responding interviewees is not
an obvious. I would like to thank all the respondents from NCB,
Riyad, and Al Rajhi banks
both management and the employees not forgetting the clients
for their valuable information.
It would have been difficult to complete my work without their
crucial information. May all be
blessed.
v

ABSTRACT
Digital transformation is more than moving the traditional
banking sector into the
digital world. It is an important change that the Saudi Arabia
financial institutions are learning
to interact and satisfy the client's needs. The dissertation covers
the impacts of digitization of
the Riyad Bank, Al Rajhi bank, and NCB bank. Digitization
begins with understanding the
customer's preference, choices, dislikes, likes, and behavior as
well as aspirations and needs.
The changes bring a shift in the organization from product
centered into customer-centric.
The data collection involved questionnaires, sampling and
content analysis. Research
questions and survey to the employees, potential and existing
clients as well as management
generated information in the open and closed ended
questionnaire. A total of 299 were issued
with the questionnaire, after examination and analysis, the
responses had a reliable and direct
response towards the study. Analysis of the financial year's
reports was crucial in the last three

years dated 2014, 2015 and 2016. ATMs and point of sale have
increased in recent years due
to internet penetration. There are suggestions on the areas of
improvement in the banking sector
in the oil-rich country. Improvement of the computers
passwords and the customer's security
for their wealth emerges as a loophole that needs to be
addressed.
Keywords
ATMs, Banking, Banking Sector, Digital, Digitization,
Financial Security, Traditional.
vi
Table of contents
1.0 CHAPTER 1:
INTRODUCTION……………………………………….………….
……..2
1.1
Objectives………………………………………………………….…

……………5
1.2 Hypothesis
………………………………………………………….……………..
6
1.3 Significance of the
study………………………………………….……………….7
2.0 CHAPTER 2: LITERATURE
REVIEW…….………………………..…….………….…9
2.1 Customer
behavior…………………………………………………….…………
..9
2.2 customer
satisfaction..............................................................................
........…...10
2.3
Quality………………………………………………….…..…………
….………10
2.4
Satisfaction……………………………………………………………
……….....11
2.5
Value……………………………………………….…….…………...
………….13
2.6 The SERVQUAL and SETRVRERF
models………….……......……….………14
2.6.1 The Riyad

Bank………………………………………..……………………….14
2.6.2 The Al-Rajhi
Bank……………………………….…………………………….20
2.6.3 The NCB
Bank…………………………………………………….…….……..2
4
2.7 The gaps in the
literature…………………………………………………………28
3.0 CHAPTER 3:
METHODOLOGY…………...……………………………………….
….32
3.1Primary
source…..................................................................................
..................32
3.1.1 Sampling
……………………………………………………………………...33
vii
3.1.2 Questionnaire
……………..…………………………………….……….…….33
3.2 Secondary
source...…..……………………………………………………….….
34
4.0 CHAPTER 4:

RESULTS……………………………………………………………..
.....37
4.1 Results from questionnaire
…………………………………………………….39
4.2 Results from the financial statements
..........................................................…...42
4.2.1 The Riyad
Bank……………………………………………………………….42
4.2.2 The Al-Rajhi
Bank…………………………………….………………..…….44
4.2.3 The NCB
Bank…………………………………………….……………….....49
5.0 CHAPTER 5: RECOMMENDATION AND
CONCLUSION…………….…………….53
5.1
Recommendations…………………….……………………………
………….....53
5.2
Conclusion………………………………………………..…………
……………55
References
…………………………………….…………………………………
…………..59
Appendices
…………………………………………………………………………
……….65

viii
List of Tables
4.1 One – Sample Statistics
…………………………………………………………........39
4.2 One – Sample Test
……………………………………………………………………40

ix
List of Figures
4.1 Range of Customer Satisfaction
…………………………………………………………41
1
Introduction
“Dreams are extremely
important, you can’t do
unless you imagine it”

2
Introduction
The paper focus on the effects of digitalization in the banking
sector in the Saudi Arabia,
the focus is the comparison of the three top banks. The three top
banks are Riyad Bank, Al-
Rajhi bank, and NCB bank. The research has shown that the
banks use the current technology
in almost all activities. The world is changing with the
innovation taking place. The new
technology has been used in my fields' one of them being in the
banking service industry (Khan,
2011).
According to Dangwal, (2010) Riyad Bank is one of ranked
investment performing
bank in the Kingdom of Saudi Arabia, it gives financial services
to its customers in the country
and outside. Other regions served by the bank are London and
Singapore. Riyad Bank was
selected among 190 investments institution of the same kind,
having the best performance in

funds and management (Zuhur, 2011). It holds more than 200
branches. It uses the latest
electronic technologies in the banking services to bring quality
services to customers. It covers
fields such as homes, hotel, and offices offering them the
needed banking (Dangwal, 2010).
Khan, (2016) argues that the Riyad Bank has been improving it
services through the
different use of technology as stated here, firstly e-banking
solution, RiyadOnline and retail
and corporate customers manages banking affairs 24/7 from any
computer with internet
connection. Corporate clients' access accounts online such as
current accounts, saving account
and loan accounts. The bank is well known for the use of
internet banking, mobile phone
banking services and functional ATMs which are over 2200
working. The new technology has
helped to solve the faulty transitions and increased profitability
(Khan, 2016).
The factor that facilitated the Riyad Bank to adopt the new
technology was looking for
the solution that was easy and intuitive for use this helped to
lower the acceptance threshold.

1
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http://shodhganga.inflibnet.ac.in/bitstream/10603/9518/9/09_ch
apter%202.pdf
http://www.worldcat.org/title/saudi-arabia/oclc/759597815
apter%202.pdf
https://www.meed.com/sectors/finance/banking/saudi-reform-
creates-opportunities-for-banks/5008143.article
3
VESCO has been able to provide needed technology toward
security solution in the financial
market, according to the bank requirements. The bank has also
adapted easily to use the system
and also a user-friendly solution (Khan, 2016). The bank uses
the SMS and DIGIPASS
authentication; this is to the retail and corporate customers. In
this case, the use e- banking uses
the username and the password. It is when making a financial
transaction or the changes in the
necessary information in the sector. The bank processes the use
of SMS, and the application

is sent to the customers through the mobile phone. All the same,
the password is used for the
duration of time (Budd, 2011).
The second bank in discussion and the effects digitalization is a
national commercial
bank or the NCB Bank. It is the largest financial institution for
the last 60 years in Saudi Arabia.
The bank is well known for its leadership and innovation. Since
1953 the bank has facilitated
the growth and development of modern Saudi Arabia.
Currently, the bank holds more than 3.5
million customers. The bank is the most trusted in the Middle
East. The bank is wholly Saudi-
owed the bank has employed a percentage of 96% from the same
country. In the recent years,
the bank was reported to be a full-fledged financial institution.
The bank covers other areas
such as Bahrain, Lebanon, Singapore and South Korea (Khan,
2016).
The bank has tried to use a program of rapid network expansion;
this has enabled the
bank to cover large area sounding the county. The bank is
known for the diversity programs

which enhance the women and men to gather required skills,
knowledge and opportunities to
work in the banking sector to facilitate the economic
development of their country (Khan,
2016). In the year 2013, the bank made a history due to better
records on the return as profit. It
was enhanced by well strategic plans and good leadership styles
(Wungwanitchakorn, 2002).
The evident to this is that the bank was rated with A+ by
Standard and poor's and Fitch Ratings
with the highest among other banking sectors in Saudi (Zuhur,
2011). The bank has also
employed current or dynamic technology in its operation such
as, adding digital screen this
http://www.aessweb.com/pdf-files/523-537.pdf
4
very crucial when passing information to the customers,

secondly self-service facilities such as
ATMs which helps the customers to operate their banks for the
extended period of time. Also
quick service desks this increases the service to the large group
of clients who are in need of
the services. To add to the list is freeing tellers and
relationships managers this gives the rating
of how well the customers are served (Brodie & Winklhofer,
2007).
The use of Retail banking group this enhances the link between
the individual banking
and the consumer finance business. The main benefit is to
improve the collaboration between
the branch and the product. On the other side is the corporate
banking group this involves all
types of the institution starting from the smallest to the largest.
It is meant to improve the
managements of the representatives. The use of technology has
facilitated the strengthening of
the global relationships and customer service (Khan, 2016).
The third bank in the task is Al Rajhi Bank which was founded
in 1957, and the bank
is well known for the performance regarding total assets. The
bank has more than 9000

associate. The bank has been involved in the activities for over
50 years. In the year 1987, the
bank was established as a Saudi shareholding company. The Al
Rajhi Bank has networked its
operations to about 492 branches. The bank has recorded an
income of US$1.9 billion. The
bank operates in multiple segments and continues to make
diversified income resources and
the growth and development of investment and banking sector
(Wungwanitchakorn, 2002).
On the side of technology, the bank has been able to adapt the
new techniques to
improve the customer service. It is in free banking which is
available for long hours (Khan,
2016). On the side of the bank, there will be able to increase
profitability since the new
technology reduces the cost of services. The bank has continued
to develop banking programs
and also projects which focus on the latest new electronic
services. Furthermore an investment
on the products to offers the innovative banking and invests on
e-banking (Brodie &
http://faculty.mu.edu.sa/public/uploads/1357394633.902823687
020.pdf

5
Winklhofer, 2007). The leadership has to be improved through
electronic channels that bring
about needs and aspirations. The bank has numerous
collaborations with the electronic
government projects.
Al Rajhi Bank put more concentration on three main groups that
are retail banking
group, in this case, the bank focus on the segments such as
deposits, credits current accounts
and consumer financing. It was reported that the bank was first
to give shares through the
mobile phone. It is evident that the bank has one million
internet customers (Khan, 2016). The
bank has developed to the extent of having 60000 Smartphone
apps which help customers to
get relevant information. On the other had the corporate
banking group the main concern is

the financial and investment where three processes are most
involved that is the letter of credit,
letter of guarantee and request from the customers. The bank
through the effective use of
current skills has the drive which has facilitated to meet its
financial needs, customer service
and delivering innovation (Khan, 2011).
The three largest banks have close relationships in terms
performance and customers’
services which have been made possible by the new technology
in the banking sector. The
evidence of performance is noted through the financial ratios.
Both the banks and the customers
have benefits as results of digitalization (Brodie & Winklhofer,
2007).
1.1 Objectives of the study
This section outlines the objectives of the paper about the
effects of digitalization in the banking
sector.
1. To determine the effect of digitalization to the general
performance of the banks.
2. To determine the current changes in the technology affecting
the banking section.

020.pdf
020.pdf
6
3. To compare the performance of the banks which have adopted
the new technology and
the effects to those that are yet, in other words, the similarities
and differences?
4. To determine the effects of digitalization to the customer
assurance and the reduction
in the cost such as labor.
1.2 Hypothesis
In this case, the hypothesis is a tentative answer to the research
problem. The research
question is where the digitalization has an impact on the
banking sector both to the customer
and the bank performance. The tentative answer requires being
tested using available tools.
The technological development in the banking sector has an

effect on the performance of the
bank as well as customers relationships.
5. Some of the technological advancements are mobile banking,
e- banking, online
banking and computer networking. The mentioned are part of
the improvement in the
banking sector.
6. Their effects could be improving the customer's services and
increasing the
profitability of the three banks. The customer improvements
could be faster
transactions that are sending the money and making
withdrawals. Making
communication and passing valuable information from both
sides.
7. Furthermore, the customers can have access to the bank
accounts at anytime,
anywhere banking with the use of ATMs which enhance to
withdrawal money
anywhere. Also, the bank reducing the costs which are
facilitated by the traditional
methods, such costs may include employee cost and the banking
costs. How the bank

can reach many clients regarding the geographical area.
8. Lastly facilitating the bank profitability and increasing the
security of both the
customers' wealth and banks assets.
7
1.3 Significance of the study
There is little research that has been conducted on the impacts
of digitization in the banking
sector in Saudi Arabia. With that effect, the investigation will
go all the way to:
• Increase the store of knowledge on digitization in the financial
institutions in general
• Serve as a parameter for the future formulation and
implementation of policies and
plans for quality bank services
• Assist the three banks-Riyad, NCB, and Al-Rajhi banks to
understand the essence and
importance of modernizing their operations and activities
• Lay the foundation for future scholars, learners, and
researchers on the effect, trend,

and future of digitization in the banking industry.
8
Review of
Literature
“If you do not know the
history, you don’t know
anything. You are a leaf
that doesn’t know it’s
part of the tree”

9
Review of Literature
This chapter explores the literature review. Explicitly, it covers
the literature on the
SERVPERF and SERVQUAL models, empirical cases studies,
customer behavior, and
customer satisfaction with modernized banking sections in
Saudi Arabia.
2.1 Consumer behavior
According to Servon and Kaestner, (2008(, the client behavior
is unpredictable since
everyone has his/her unique taste and preference are changing
with the changing complexity
and differentiation of the services in the service industry. Their
demands for convenience,
sensory and health as well as qualities have become
heterogeneous in the recent past. Persons
and individuals differ from one another and their perception on
issues is completely different.
Many companies and organizations currently have adopted plan
of opening
opportunities for the client to air their grievance. It is supposed

that knowing the complaint in
a business give the management an in-depth understanding of
the customer’s satisfaction thus
indirectly knowing their needs, requirements and preferences.
As indicated by (Zuhur, 2011),
not all customers find it ethical to lodge their complaints in the
complaints department. They
will cease their co-operation or step back in their support to the
welfare of the bank. According
to the hydrant.co.uk, (2017), the customer’s perception trigger
their acceptance of the goods
and services produced. This is attributed to various conditions
like psychological, social,
personal, and cultural. Khan, (2011) explained that the
consumer purchasing behavior matrix
as professional. The buying behavior is a point of consideration
when analyzing the results.
2
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2.2 Customer satisfaction
Both the clients and financial institutions attach more weight to
satisfaction. Desperate
efforts are made by these banks to provide high quality services
and products to the people.
According to the customers, they are always ready for best
value for their money and stand for
less in the market when it comes to their spending. Once the
clients are contented, there is
positivity and with that in mind, the competitors find it hard to
overthrow the established
authority. The loyalties from the firm are profits and
repurchasing thus sales increment. As
indicated, the economic capriciousness is at the hands of the
customers, (Khan, 2011) note that
there are different categories of customers. They are nations,
individuals, communities, groups
or organizations. Like other departments, the banking sector is
on the rise with intensifying its
effort in attracting the clients through quality services. Without
quality, surviving in the 21st

business competition is not easier. The quality, value, and
satisfaction are terms that are
prominently employed through the literature review and in the
results. It is clear while
understanding the meaning of the same.
2.3 Quality
Defines the term as ‘the extent to which a bunch of inbuilt
features meet requirements.’
These inbuilt features include functional, temporal, sensory,
behavioral, ergonomic, or physical
while the requirements involves the expectations and needs.
hydrant.co.uk, (2017) defines
quality as ‘conformance to requirements or specifications and
fitness for the purpose or use
respectively.’ Some concur while others conflict their view.
Quality is striving to meet the
expectations and needs of the clients. With that in mind, the
yardstick for defining service
quality does not at all include bank policies but the clients’
expectations at the end. (Zuhur,
2011) argues that the relation or interaction between service
provider and the customer induce
viewpoints of client’s quality.

11
The attitude of the service provider is serving as the quality
indicator for the potential
customer. The physical infrastructures like modern servicing
equipment machines and internet
service are heavily considered by clients while gauging the
more diversified and modernized
bank for service delivery. The receptive attitudes of the sale
representatives and the marketers
may create either positive or negative perception on the
customer. At the highest level is the
judicial making process regarding the products is the buyer
(Chau, & Lai, 2003). They
recommendations, suggestions, and insights based on the
adverts after the consumption of the
product in the past are worth noting and following. On the same
note, the customers are either
negatively or positively moved by the service provider. In a
summary, on the materials

regarding the quality, the conclusion is that the principles
applied are difficult and complicated
to determine the exact cause and influencer. This due to the
facts that the services are:
x Intangible
x They are heterogeneous thus implying that performance do
vary
x Testing is over a period of time and that it cannot be placed at
capsule for measuring
x Production of products and services is inseparable to the
consumption.
2.4 Satisfaction
Satisfaction means the extent at which the requirements are
meant as stated or implied
or obligatory. According to Brodie & Winklhofer, (2007),
satisfaction is a case where the
service provider attends to the norms and expectations of the
buyer. In the banking division,
the same view is shared by Brodie & Winklhofer, (2007) in their
study of the e-marketing
evolution. They postulated that gratification is where the client
cognitively compares the
expected performance with the actual presentation. To some, it
entails the post-purchase

behavior and conduct while taking into account the
expectations. Summarizing the kinds of
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literature on meanings of gratification, Cristina, (2008) argues
that it happens in the realization
of what is gotten against what anticipated.
hydrant.co.uk, (2017) accentuate that gratification is due to
either internal or external
factors. The measure and level of satisfaction is hard to
determine and forecast. Radhakrishnan,
(2008) indicates that the customer satisfaction is often dynamic
and not static but the stages
keep on changing depending on the vast experience at the hands
of the bankers. hydrant.co.uk,
(2017) outlines the difficulties with the defining and
understanding the concept as follows:

x It changes, thus not static; new levels of awareness with new
experience will interfere
with achieving the potential phases of gratification
x It will lead to complexity and consequences with a myriad of
experiences on, at and
after the measuring.
x It happens in social setting which vary and change and is
unpredictable to the banking
industry.
x It becomes hard to know the conditions necessary for
gratification, especially where
intangible aspects like service industry are at the center.
x The reasons for dissatisfaction, on the other hand, are easier
to detect with
exceptionality state of the service.
x Without a grip of the causes of satisfaction, it is dangerous to
treat the client and realize
good result. The PR tool if not effective, then the failure of the
whole firm is inevitable.
hydrant.co.uk, (2017) contend that gratification is not only
related to the regarding and
reliability of the service but also to the experience of the buyer.
The customer retention is a

good measure of the fulfillment. The consummation is not a
guarantee loyalty to the employees
who move from one bank to another. Saleh & Anderea, (2002)
in their magazine note that what
is required for fulfillment is the improvement and loyalty of the
seller. According to the Kano
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model, there are three categories of satisfaction namely;
attractive needs, one dimensional, and
‘must-be.’ hydrant.co.uk, (2017) defines ‘must-be’ as a
situation where there is not satisfaction
to the client by the service provider. It is important to note that
there is no increasing
consummation with the attributes of the product. In the
performance or dimensional needs, the

client perceives the service as of a high-quality and thus the
fulfillment is higher and the
opposite applies. In the attractive needs, there is increase in
consummation with the increase
with the performance and in case of dissatisfaction; the
performance is usually at the lower
end. The correlation between the attributes summarizes the
customer and their needs for
gratification.
2.5 Value
Value according to many scholars is the significance that is
attached to the services in
exchange with the funds paid. In his stand Khan, (2016)
indicates that the value is derived the
transactions, interaction, and experience made during the
banking duties. He adds that the value
emanates from the perception when it is higher than quality. In
summary, the value is defined
in four different ways as follow; value is ‘low price, want
satisfaction, quality of the price paid
for and is received for and in exchange given out.’ The value
conclusions are based on non-
material and material aspect. The client allocates value to
service or product based on the

quality and price expected. The values differ with the
consumption process. Khan, (2016)
concludes by saying that value rise with a rise in the quality.
The concepts are related in
understanding the impact of banking industry in Saud Arabia.
2.6 The SERVQUAL and the SERVPERF models
In understanding the impact of banking, satisfaction, measuring
quality with the
services delivered, the two approaches are used. SERVQUAL is
the leading measure of the
quality in the banking and service industry (Lawsky Warns
Pioneer Savings Bank Customers
14
of Breach, 2017). The measurements are from the client point of
view. The purpose of the
model is to have a reliable and a standard indicator in the
service industry. The dimension has

attributes that include responsiveness, competency, courtesy,
communication, reliability,
security, access, credibility, understanding clients, and
tangibles. In our case, it is advisable to
use the tangibility, credibility, accessibility, reliability,
communication, and security. Based on
the selected dimensions, the questionnaire and sampling the
clients is more than easier.
The SERVPERF model was developed after criticism on the
capability of the former in
measuring the satisfaction and quality of the services. Though
employing and addressing
various aspects of internet banking, it is insufficient in
measuring the totality of the issue.
Studies conducted by scholars like Ravi et al., (2007) while
trying to comprehend the profiling
of banks in the wake of modernization; they support the model
as a better way in helping people
understand the research. The model includes even psychometric
properties in the scale and thus
accurate results. It has however been hampered with
inconsistency and there are
recommendations for the same as follow;

x Practitioners must adapt to the condition structure for quality
data in different or
specific setting
x Academicians should revisit their objectives to make it valid
and reliable thus
multidimensional in scaling and measuring.
2.6.1 The Riyad Bank
In this section the paper focus on the literature review of the
three Saudi Arabia banks.
The Riyad Bank literature review, the technology sector has
been advanced for the recent years
mostly in the banking sector. This has triggered the several
changes in the banking section.
The biggest areas affected by the changing methods are
transaction processing and
management information system. The systems have been
integrated that is information system
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with communication technology and innovative technology in
the production of services and
products. The general developments in technology have
facilitated the world to be a global
village, in particular, the banking sector in Saudi Arabia
(Radhakrishnan, 2008). The statistics
in Saudi Arabia has indicated that the high growth rate has been
facilitated by evaluation of the
banking sector; rising to 75% increase is expected in the future
as the Riyad Bank continues to
invest in the industry to improve the customers' relation
(Radhakrishnan, 2008).
According to with the Van, (2001), the construction of cyber
cafes which has internet
access have been facilitated by internet banking also known as
E-banking this is considered the
latest technological development. The new technology has been
used to deliver the banks
products and services. E- Banking has improved over several
decades ago. In the growth and
development of technology, the electronic commerce has
enhanced the banks to interact freely
with the clients and exchange the relevant information in the
process. The new communication

channel has been developed to enable the bank to reach the
customers in the different parts of
the county. The e-commerce has played a significant role in the
advancement of the business
by changing the way of carrying the business transaction
(Brodie & Winklhofer, 2007).
The internet banking has changed the order of the day where the
individual must
approach the main bank or the branches, and the customers can
now carry the routine such as
withdraw cash, depositing of the money and requesting for the
statements online. According to
Khan, (2011), the customer has a chance of obtaining large
quantities of services and products.
The mentioned technologies to enhance customer’s satisfactions
are direct deposit, computer
banking, and store value cards and debits cards (Servon and
Kaestner, 2008).
There are several ways in which the technology has enhanced
the customers to make
transactions without having physical present at the bank
branches. There is PC banking, online
banking, internet banking, telephone banking or mobile
banking. All this are referred to as E-

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banking (Leow and Bee, 1999). In the recent years, the Riyad
bank has centralized its operation
and also arrived at the core solution through the networked
computers. Moreover, the bank has
introduced the new delivery services such as networked ATMs,
internet banking and
Smartcards products (Filomina, Merciaselva, & Sudheendran,
2009).
The journey of digitization in the e-banking sector became to be
in 2014. The first step
included the launching of the Riyadmobile portal to aid the
clients who are wishing to access
their accounts through handheld devices like the Tablets,

iPhones and Smartphones. The portal
enables the customer’s admission great range of services like
billing, IPO subscriptions, and
international transfers (Brodie & Winklhofer, 2007).
Golden and private banking services are part of Riyad banks to
provide the best golden
and private services to the clients. There are numerous
innovative and new products are
provided through the channel. At the moment, there are about
58 golden service centers with a
total of four private banking hubs exclusively of the female
clients. The aim of the service is
to provide an extensive product portfolio that aim at providing
the unparalleled services 24/7
hours a day. The convenience and transparency with the banking
experience is taking shape.
In the line with the kingdom, the bank is delivering services
that are relevant and to the
businesses operating in their vicinity. The bank is aiming to
become a financial partner with
the administration and in particular with the relations regarding
management. The corporate
portfolio employees are in for the client service delivery. In the
recent past, the bank is reaching

the small and medium sized investors to empower the citizens in
collaboration with the
economic diversified activities of the Kingdom (Brodie &
Winklhofer, 2007).
The corporate finance is divided into project and corporate
financing. The branches in
London and Singapore provide the services to the industries and
businessmen from Saudi
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Arabia. The linkages with the financial institutions in areas like
insurance, leasing, investment,
and finance as well as trading with the Kingdom (Brodie &
Winklhofer, 2007).
Over the years, the bank is more than dedicated to support the
project in a strategy to

increase its development projects. For instance, it is behind the
world’s famous phosphate
development. The institution is supported by the mosaic in
Saudi and became the first bank to
receive the support. The bank has a beta version that allows the
customers to apply for
businesses, dubbed ‘Riyad Bank Business.’ The application led
to the one-touch offer through
the tablets and smartphones offered by the corporate thus secure
and convenient. Across the
country, the bank sponsor conferences and seminars on the
issues affecting the financial and
global challenges (Subbiah, & Jeyakumar, 2015).
Islamic banking is providing the holistic Islamic products and
services and the financial
transactions to investments and financing solution to both
corporate and retail banking. In the
Islamic banking is fully guided and guided through the sharia
committee (Khan, 2011). The
journey of digitizing the Islamic banking sector held an
educative workshop in 2014 and trained
over 300 employees and additional sixty follow-up visits for the
future of the bank. Through
incorporation of online services with Islamic banking, the

department strengthened the
financial operations counting approval and review of car
financing, funding real estate in the
Arabian sub-continent.
It oversea branches are extensive with a good network including
in Singapore and
London. The foreign branches are important in providing the
corporate financing and
investment opportunities. Their investment abroad is substantial
(Brodie & Winklhofer, 2007).
Risk management is a key pillar to the financial institution
especially in the era of globalization.
The risk frameworks and policies are approved by the
committee associated on areas of interest
income risk, liquidity risk, and asset quality risk.
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Ladies banking is part of the bank recent entry into the banking
industry. The sections
and branches are spread in different parts of the Kingdom with
an aim of reaching more women.
In the 21st century, women and ladies in particular are
empowered and have businesses that
require financial support (Brodie & Winklhofer, 2007). The
bank has taken the initiative to
establish all ladies divisions thereby increasing the number of
clients and the profitability of
the bank. At the moment, there are 75 branches offering the
services.
The technological innovation has changed the structure and the
nature of banking. This
is healthy in sustaining the competitiveness of the sector.
According to with the (Subbiah, &
Jeyakumar, 2015) the core banking has been assimilated in the
Riyad banks. The branch
network is noted to be extensive, and it has widespread to the
other regions. The realized
benefits of core banking are reduced transaction cost, rapid
implementation customer's
satisfaction and the management of increased transactions from
time to time. In addition to that

is the better security of both the bank assets and customers
wealth (Brodie & Winklhofer,
2007).
The customer feedback has shown that they are happy with the
new experience with the
current changes. Core banking is a new trend in the banking
sector; it has improved the speed
of transaction and faster communication. According to with
Budd, (2011), e- banking is the
first technology to serve the economic time since the users can
be able to complete their
transaction on the computer and give computerized to the users
of financial statements. The
clients obtain their accounts information with effective
operations. The customers can request
and view the own following accounts and related ones, credit
and debit cards, funds time
deposit, saving certificates, loans, treasury bond, the latest
transaction of the current month and
can view and print all required statements (Budd, 2011).
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On the other hand one has a chance to make transactions from
one account to another,
can transfer credit card and to any charity, the only requirement
is the digital signature. On the
same line, the client can request the following change in
mailing address, change or complain
to add a related account, to make external transfers and to
manage supplementary cards
(Radhakrishnan, 2008).
The consumers have to attract to the current technologies since
it is a convenience, it is
an easy way of making transaction and in most cases, and it
saves on the cost (Anguelov,
Marianne, and Hogarth, 2004). The Geographical location of
either small firms or the large
firm is not a limitation of banking since the e-banking solves all
this. The bank allows the
clients to make different global activities when buying and
selling of goods and services to

other individuals (Shin, 2008).
The notable effects of digitalization are customer’s satisfaction;
retention and
acquisition are considered as key in the Riyad banking sector.
The research which was
conducted by a group of economists showed that the cost of
admitting a new customer vary by
20% in comparison with the traditional ways of banking. The
evolution of electronic banking
started with the introduction of the ATMs, and this sector has
made several improvements
catering for telephone banking, direct bill payment and
electronic fund transfer and online
banking. This is according with Cristina, (2008).
In the recent years, the Riyad Bank has made several
improvements in the existing
technological achievements (Khan, 2011). For example in the e-
banking the cash management
service is the new way of looking at the loopholes where the
bank makes the unnecessary costs
which may result to lose. On the other side, the customers'
wealth is safeguarded through the
new service delivery. Furthermore the broadband transmission,

internets access through the
mobile phone and Web TV is also new methods. The Riyad bank
can be able to carry out
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cheque scanning from another banking institution to see that it
is valid. With this system, the
customers access their accounts 24 hours for seven days (Brodie
& Winklhofer, 2007).
The other new thread is anywhere banking with the widespread
banking technology the
customers has a chance to check their bank accounts at any
location including the inner of the
remote areas. The strategic positioning of ATMs in the hotels,
malls, airports and rail stations
has made withdrawing of cash to be easy where the customers
where customers can carry their

normal activities (Ravi et al., 2007). Large numbers of clients,
who are attracted to the banking
sector, want to have an eye on their money matters. Viewing
their accounts periodically and
also checking the receiving payments (Kolodinsky, Hogarth, &
Hilgert, 2004).
The last but not least improvement in the Riyad banking sector
is credit cards and debit
cards this allows the customers to spend their money anywhere
with the limit given by the bank
managements. Khan, (2011) in this case, when a transaction
conducted is balanced in the
internet banking house where the individual account may be
increased when money is
increased, or the account reduces when the money is paid out.
With the Master Card or Visa
card, you can make travel payments with easy (Dangwal, 2010).
According to AL-Faraj, Bu-Bshait, & Al-Muhammad (2006)
who investigated the
performance of the Saudi commercial bank firm, he used the
DEA to analyze the technical
ability of the Saudi banks during the year 2002. He made a
comparison with the efficiency of

the world banks scores. The Analysis demonstrated that the
Saudi commercial banks compare
equally with the world mean scores. The recommendation at this
point was that the Saudi banks
should continue adapting the new technology since the
performance was as result of the
technology in the banking sector. This facilitated the
competitiveness in the banking sector
(Dangwal, 2010).
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2.6.2 The Al-Rajhi Bank
The AL-Rajhi Bank has adopted the internet banking, according

to (Luis, Carlos &
Miguel, 2008), the extensive technology innovation and
telecommunication has facilitated
financial distribution channels in different forms such as ATMs,
telephone banking, and PC
banking. The latest innovation is internet banking which is very
healthy in the banking sector
(Luis, Carlos & Miguel, 2008).
The commercial uses of the Internet have become a faster
growing of the World Wide Web
(WWW), (Hamid, Mustafa, Abdullah, Etl, 2011). The bank has
invested heavy in the
development of the internet channels the internet banking has
evolved over duration of time
where the bank has used it to offer more opportunities that
facilitate the management meeting
the better customer services through interaction, data mining
and customization in the internet
banking service (Luis, Carlos & Miguel, 2008).
AL-Rajhi Bank adopted online banking which was introduced in
the year 1980s (Luis,
Carlos & Miguel, 2008) this time the customers were provided
with an application program

that facilitated individuals operating personal computers. The
PC was dialed into the bank
through the modem, telephone line, and the operated programs.
The system of internet banking
was faced with a challenge of the insufficient fund and a limited
number of users. Later the
online banking caught up where the customers were able to use
the system sufficiently through
making transactions over the web. In the year 2001 to 2004, the
level reduced but later during
the year internet banking started to progress (Aladwani, 2001).
Al-Rajhi bank is the best bank in the digital marketing in the
financial services
according to the internet Awards category in 2012. In the
ranking of the Islamic financial
institutions, the Global finance magazine awards the world’s
best celebrated institution in the
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Islamic world. Its website won the best commercial web in the
continent, and the only bank in
the country.
Online banking enables the customers to perform banking
transactions using a computer
that has internet connections (Aladwani, 2001). On the same
note, it enhances the customers to
have access to their accounts and gets the general information
from the bank. This has
eliminated the use of letters, faxes, original signature and
telephone confirmation. The
customers are free to ask any relevant information and get
feedback without necessarily moving
to the bank. Traditional retail banking services are possible to
carry out such as opening an
account or transferring the fund from one account to another
(Khan, 2011).
To add on the list banking services such electronic online
payments through
telecommunication networks (Aladwani, 2001). This provides

the local connection to
worldwide that access from any internet connection. The PC
banking facilitates the customers
with the financial software package to fill their details online,
the members after that can send
the details to the bank through the private network. The bank is
using the technology
transformations to expand their customer's relationships. The
extent of use of technology
depends on the development level of the bank and the client's
acceptance to the changes in the
technology of the banking sector (Aladwani, 2001).
The two main ways that the bank uses to offer the service to its
customers are existing
bank with physical offices or the brick- and mortar bank. This
gives the customers chance to
excise the one they are comfortable. A computer with the
database is set in the bank this
enhances to serve other branches with the same connection from
one point. The virtual banks
enable the customers to make the deposits and withdrawals from
automatic teller machines
ATMs (AL-Faraj, Bu-Bshait, & Al-Muhammad, 2006).

23
According to Thulani etl., (2009) there three functional types of
internet banking, they
are informational, communicative and transactional.
Informational in this type the bank has a
marketing information concerning the bank services and
products which are found on the stand
–alone server. The second one is communicative this one allows
the interaction between the
bank's system and the customers. In this case, the two can
exchange the required information
and give the immediate feedbacks to the both parties (Khan,
2011). This makes banking
operations to be easy and saves time. All the same, the system
is limited to electronic mail,
accounts inquiry and loan application. The last type is
transactional this allows the customers

to make direct transactions with financial implications. In this
case, the holders can make
transactions from their bank to their account and also from their
accounts to the bank (Dangwal,
2010).The customers through this system can make payments to
the third party. Either the
members can be members inside the bank or outside the bank.
The payments of bills are also
possible in this system.
Servon and Kaestner (2008), note that the internet banking has
to be considered as the
necessary way to reduce the cost, some of the cost is transport
cost from one bank to another
during transferring of the fund from one bank to another (Khan,
2011). Secondly is the
accounting cost which is as result of human resource required to
carry out the bulk calculation
involving large numbers of the customers to be served. This
cost has been minimized by use
of software and programs which enable to balance the financial
calculation (Servon and
Kaestner, 2008). The other cost is time value of cost it is
evident that the bank was taking the

long process to complete one activity. This time wasted could
have been used to achieve other
incomes. With the current technology, the bank saves a lot of
time when serving the customers.
This is economic to the bank.
On the same line, the use of technology has created a good
relation with the customers.
The relation with the customers helps to increase the numbers
within the set limit of time. The
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24
profitability of the bank has been facilitated by the significant
number of the customers being
served by the bank per day. It has been simple to maintain the
clients and at the same time

improve on the shares to the client (Luis, Carlos & Miguel,
2008).
In the competitive banking sector, the use of the current
technology is crucial since the
bank can be able to make quality outcomes which help the bank
to compete with others
favorably. It is considered as a competitive advantage of any
financial entity (Khan, 2016). The
current banking technology helps the clients to carry their own
transactions without visiting
the normal banks. This has been made possible through the use
of 24/7 system. This is where
the bank systems are in operation for long hours. This gives
their customers chance to carry on
with their business transactions at all time without limitation.
The bank has an advantage of checking the transactions made by
the customers with a
lot of easiness; this is because the transaction takes place on the
computer network which has
access to all clients who are registered. This gives the bank an
opportunity to monitor the
problems and searches for solutions which could result in
future. The bank also provides a
direct assistance to the clients without direct contact. According

to AL-Faraj, Bu-Bshait, & Al-
Muhammad (2006), there are also able to reduce the delays
which take place in the certain
season.
2.6.3 The National Commercial Bank (NCB)
This section is concerned about the literature review of the
national commercial bank
in Saudi Arabia banking sector. The article focus on the positive
and the adverse effects related
with the digitalization of the banking industry (Khan, 2011).
According to Saudi Arabia
Monetary Agency (Sama Yearly Statistics, 2017), the
commercial bank has evolved and
adapted the new methods of service delivery to the customers in
the recent years. The new
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technology in the banking sector is in use to make good returns
to the bank and at the same
time enhance good customer relationships.
The computer networks assimilated by the bank have enabled to
connect customers
locally and abroad (Brodie & Winklhofer, 2007). In this case,
the bank has computer
monitoring system which is located in the central region; it is
networked with other branches
in the same firm. The clients have access to the systems from
different regions of operation.
This has made communication easy from the bank management
to the customer service.
Customers can be able to enquire the information from the bank
and the bank able to give direct
feedback to the clients. On the other side, the back passes
relevant information or message to
the customers very easy without any movement (Khan, 2016).
The bank has registered a notable increase in the
numbers of backing customers for the
recent years. This has been the case in the regular use of ATMs
this helps the customers to
make the transactions throughout the period or what is referred

24/7 system it has enhanced
the customers to make direct trading activities from the bank to
his or her own account. The
change in online service rather than teller based. This has
increased the number of young
generation to join the banking sector (Servon and Kaestner,
2008).
In addition to this, the bank has absorbed the structuring of
banks product that is line
with the law, and this creates the best working environment. In
this case, the system restricts
interest- bearing transactions. The firm has been able to give
over one thousand ATMs to
different customers over the large geographical area. The bank
is on the front line in providing
the clients with on-line, phone and SMS banking capabilities. It
is clear that over 70% of all
the transactions are given through the electronic channels (Luis,
Carlos, & Miguel, 2008).
According to Tadawul.com.sa, (2017) the free online trading
enhances about one million
transactions per single month.
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26
The success of the bank will be determined by the ability to
attract the youth from Saudi
to enable them to make maximum benefits from the available
technological advancements. The
effect of technology, on the other hand, is the reduced numbers
of employments which have
resulted from most of the banking activities changed to
machines. This has negative effects on
many educated individuals in the country (Aladwani, 2001). If
it is looked from another ago
the transactions are done by mostly the employed people of the
business men and women. This
means shortly the banking sector will face will the challenge of
less income despite an increase
in the use of new technology.

The mobile banking has facilitated better performance in
finance, the national
commercial bank in Saudi have recorded a notable progress
regarding cross income as result
of welcoming the new methods of offering the services to the
customers (Servon and Kaestner,
2008). This has been possible through reduced cost of providing
service and products to the
clients within a short duration of time. For the last five years,
the bank indicates better results
than the time the new technology was not available. The
customers have increased almost to
double as a result of the faster operation in the banking sector.
According to (Alahli Annual Reports, 2017), the bank has
realized the following
benefits out of the new technology in ATMS, mobile banking
and e-banking as stated below.
Firstly the ATMs give an opportunity for the most financial
institutions to increase their
revenues through secured initial cost which were incurred; the
technology assisted the bank to
automate the services which were done manually (Khan, 2016).
The bank makes some saving
for example the reduced number of cashiers and also the

overtime payments which were
claimed by workers. The general cost of operation has reduced
since the bank management
can be able to cut down the unwanted number of employees in
the financial institution. The
main costs which were reduced are the payments of some
salaries to tellers and back office
personnel and the general cost of asset maintenance (Luis,
Carlos, & Miguel, 2008).
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The staff productivity significantly increased through the fact a
given area was covered
by the new technology; areas which were covered include
giving out cash, taking cash and

preparation of statements. The workers can now concentrate on
a zone making it more
productive such as cheque sorting and clearing area. The new
technology by use of ATM has
created the customer confidence. This enhances the bank to
continue investing in the new
technology such as internet banking, telephone banking, and
electronic cheque clearing
(Aladwani, 2001).
The general performance of the bank has been differentiated
from the other bank since
its performance is outstanding in comparison with the other
banks in the same region. It very
easy to compare the financial results by use of ratios, this was
tiresome due to huge calculations
which were there before the introduction of software's that
handle big sums (Radhakrishnan,
2008). The congestions in the banks have significantly reduced
mostly during the end months
where the customers are doing a lot of transactions. The
tiresome works of serving the long
queues, this was reduced by the development of the computers
which enhance networking.
The risk management was reduced by the new technology that

uses the computer
software's that hold a lot of data that is used in the preparation
of financial statements. The
human beings are prone to making the mistakes those results to
loss of the banks and losing
the customer's confidence. This means the solution was reached
through the new skills. The
comparison in terms of cost used to make a single transaction
was reduced by 40 cents (The
Wall Street Journal, 2006).
According to Radhakrishnan (2008), the bank having the
desirable technology provides
the customers with consistent service this brings about
satisfaction to the customers at all time.
This has been made possible through the computers enhancing
the 24/7 service to the clients.
The customer can be able to carry their activities without delay
from the bank. The customer
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28
does not search for alternatives which could have reduced the
income of the bank. The program
used in this case is automatic programs which enhance
individuals to have self-services at any
time irrespective of geographic area (Kolodinsky, Hogarth &
Hilgert, 2004).
Furthermore its increase the customer perception control this
has been giving the
customers benefits using the SSTs (Khan, 2016). The customers
are concerned with
convenience mostly when dealing with the bank's accounts. The
location of the ATMs in
strategic points is considered healthy, such areas such as
shopping mall and filling stations.
The customers do not have to carry solid money. Saving money
and time is another greatest
benefit since the money can be used in other activities and time
also can be used to make other
contributions. The customer can combine the activities without
necessarily moving from one
bank to another at the same time (Radhakrishnan, 2008).

2.7 Gap in the literature
It is clear from the pieces of literature that a number of case
analysis and studies have
been carried out on digitization of banking sector both in and
outside the country in the recent
past. However, very few of the journals and articles compare
the three banks. According to
Khan, (2011), examined the customer’s satisfaction and quality
perspective in relation to the
e-banking and online banking in the country. The
technical/functional quality is better in
predicting the customer’s satisfaction, impacts, and increasing
of the clients than the
SERVQUAL based model. Kaleem & Ahmad (2008) compares
the view on the result with the
incorporation of the internet in the banking industry. There are
differences in the satisfaction,
reputation, and revenue collection in the wake of digitization
era in the three banks. The
reliability and tangibles were the most outstanding features that
clients attach more focus on.
As it can be revealed from the close synthesis of the materials,
none of the direct comparison
can be located on the libraries.

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Though a few authors such as ((Filomina, Merciaselva, &
Sudheendran, 2009), and
Cristina, (2008) which concentrate on the technological service
based services in these banks,
e-marketing and banking options in the banks, and upcoming
technology in the industry. In
precision, the focus has been on the customer’s sex, level of
education, age, and occupation in
their data entry. At the same time, the variables are regarded
despite the geographical locations.
Cristina, (2008) looked at the students in colleges and
universities possessing the
accounts. There are many colleges and university students with
accounts and see the future of

banking as the same as technology. They are satisfied with the
emergence of the recent online
portal and electronic businesses are part of the digital
generation that would embrace. While
the young people wanted to be treated well, the independence
with cash availability remains a
concern.
Khan, (2011) also researched on the perception of the ethnic
and racial group on the
matters on the Internet use while banking. The result indicated
that although no statistical
disparities in the overall satisfactions, the largest groups
including the Muslim, Hindus and
Christians showed the differences in quality dimensions.
Muslims, for instance, are receptive
to the Islamic banking as well as the ladies banking that are
some of the product that are offered
by the banks. The research by (hydrant.co.uk, 2017), the
customer satisfaction and continued
support is influenced primary by the education, internet, and
good customer relations.
It is nevertheless clear from the customer satisfaction piece of
literature that viewpoints
are due to a variety of factors. For example, (hydrant.co.uk,

2017), the client consumption
behavior is predisposed by characteristics like lifestyles, life-
cycle, economic situation, self-
concept, and personality (Filomina, Merciaselva, &
Sudheendran, 2009), on the other hand,
advance the matter into the image, satisfaction, value, evidence
of service, service encounters,
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30
and client’s perception in relation to quality service delivery.
Both the internal and external
conditions are influencing the satisfaction in the region.
There is no doubt that in the comparison of the banks in the

kingdom is vacuums that
need to be researched more extensively and thoroughly. Hence,
the primary objective of this
investigation is to examine the impacts of digitization and the
customer satisfaction by
customers in Riyad Bank, NCB Bank, and Al-Rajhi Bank.
Having looked at the areas of
interest, it is clear that the structure of the banks requires close
analysis to understand the
consequences thereby comparing the same (Rose & Hudgins,
2005).
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31
Materials and
Methods
“Everyone has a will to
win but very few have the
will to prepare for win”
32
Research Methodology
This part examines the methods used in the collection and
analysis of data concerning the
effects of digitalization in the banking sector in Saudi Arabia.
The methods will help to analyze
the collected data to indicate the effect of technology in the
banking sector clearly. The research

methodologies are as follows;
3.1 Primary sources
3.1.1 Sampling
The application of sampling method in the part of
research methodology, the sampling
method was used to assist the research to filter some of the
materials which were collected. For
example in content analysis samples of different period
containing different information was
sampled so that the right one to be selected. In the same way
sampling was applied in the
questionnaire to separate them in different group of different
area (Central, Eastern and
Western). The educated from the less educated and in the same
way the one which had relevant
information from the other side. The method used in the
research study in the three performing
banks in the Saudi Arabia is sampling. The three banks, in this
case, is Riyad, AL-Rajhi and
NCB bank. The main focus of the research was to check the
effect of digitalization in the
banking sector toward the customer benefits and banks
profitability.

The sample size taken from different area in Saudi
Arabia such as Central, Eastern and
Western. The groups which were selected were the customers
both existing and potential, the
employees and members of managements. Sampling is a
technique where a subset is used to
represent the whole population. A sample is a group which is
selected to represent the entire
group under research.
3
33
The methods which was used were simple random
sampling. In simple random sampling,
the customers were given equal chance to be selected to offer
the required data concerning the
effects of the new technology in the banking sector. The sample
was able to provide the reliable
information on how the new methods have facilitated the
customer service and also has
improved the profitability of the three top banks.

Since the groups were well represented the changes in
banking sector toward the
customers and the banks were realized. The sampling methods
which was used and the groups
which were selected facilitated adequate information that is
necessary to carry out sufficient
research on the effects of the bank technologies and the
customer's service. The customers,
employee and management staffs enabled the data to make
conclusions and recommendations.
3.1.2 Questionnaire
The questionnaire, the main idea of using the method is to
verify the effectiveness of the
new technology in the banks such as Riyad, national commercial
bank NCB, and AL-Rajhi
bank. The focus is the application of the technology to improve
the customer relationship and
improvement of performance in the bank. In order to collect the
data for the banking sector in
this study, the questionnaire is used. The questionnaire was
distributed to different groups
through online survey such as employees, existing customers,
potential customers and the

management of the bank.
A group one and hundred and fiftyy individuals from the
three different groups were
given the questionnaire. The 299 client’s information was used
to arrive at the results. The
design of the questionnaire had straight forward questions to
extract the exact and reliable data
from the people. The sample of the questionnaire is attached in
the appendices. The
questionnaires were sent through their mobile and smartphones.
The questions were multiple
choices as well as open-ended questions. With the adoption of
technology and the widespread
34
internet services within the kingdom, WIFI is provided free thus
the client were in a position
to return their filled document on time. As online and e-
commerce is on the rise, they were sent
in form of soft copy word document for easier answering and
presenting for analysis. The
mobile device ratio according to the communication commission

of Saudi Arabia indicates that
most of the citizens regardless of their ages have a mobile
device that can access the Internet
at any time.
3.2 Secondary sources
Content analysis
The last method which was used in the collection of useful
data is content analysis
concerning the effects of digitalization in the Saudi Arabian
banking sector. This involves the
journals, reports and the books which are written about the
digitalization and its implications
in the banking industry. The analysis included the main three
leading banks that are NCB bank,
Riyad Bank, and AL-Rajhi banks.
The research selected the materials from different
institutions including the financial
performance of the three banks. The year of operation was
selected from the time the banks
adopted the new technologies in the sector. The analysts were
selected from the learning
institution. The secondary data provided information such as
when the bank accepted the new

technology and the current plan the banks have to make more
assimilation to the new
innovative.
Moreover, the sources provided benefits that the banks
have realized after adopting the
new methods of providing the products and the services to their
customers, the customer's
acceptance of the new technology. Also the benefits the
customers are enjoying after using the
new methods in their daily operations. It also considered the
real technological advancements
35
in the banking sector such as e-banking, online banking, mobile
banking, current
communication trends and the use of the master card and visa
card. The secondary data were
able to provide adequate data when analyzed can give relevant
and resalable information to
make the results and recommendations in the banking sector.
The two methods were found to be the most suitable in

the carrying out the research.
Their application resulted to reliable information that can be
compared with other methodology
to make the desirable end results. The measuring tools toward
the three methods give the best
results of the methods.
36
Results
&

Discussion
“Do not believe in anything
because it is presented so, it is
said to you, unless and until
you yourself explore the truth”
37
Results & Discussion
From the synthesis and analysis of the data, the effects of
digitization in the Saudi
banking sector are increasing the number of clients, making
transactions faster and convenient,
increasing the security of the account owners, streamlining the
operations, increasing
advertisements and promotional campaigns, increased number of
divisions, departments and
products since the inception of the technology. Moreover, the

reporting, sharing of information
between departments is easier, cheaper and faster. At the same
time, the online baking,
sponsoring, promotion and advertising have increased the
financial base as evident from the
financial records. In understanding the results of the research, it
is important to examine the
core values of the banks. Over the five decades, the banks have
been customer-centered
adhering to the core values as highlighted in their vision. In
delivering the innovative economic
solution they enhance quality of life and the core values
include:
Passion- it is the strong assurance to the anticipated client and
addresses their needs
beyond one’s expectations. In the banking sector, Riyad, Al-
Rajhi and the NCB have sections
of Islamic banking, corporate banking, ladies banking, and the
online portal that are ensuring
the banking wherever you are anytime.
Transparency and integrity- this is the openness and standards
of personal and corporate
ethics. As we are speaking, due to the interaction with the
kingdom, financing abroad

ideologies, and investments, the Board of Management,
shareholders and top executives are
working with high moral standards to ensure smooth operations
both in traditional banking and
digital platform. They are aware that at the moment, the internet
penetration and increasing
financial assistance providers, transparency and integrity plays
a key role in the survival of the
4
38
enterprise. According to the annual reports, the financial
statements indicate growth in
revenues, branches, products, and 24/7 banking.
Solution
oriented- it is helping the audiences and customers achieve
their goals. As

mentioned earlier, the banks have embarked on financing large
projects both locally and
internationally. Riyad bank, for instance is on record to finance
the world large phosphate
project in history. The collaboration with the kingdom as
mentioned by the respondents
indicates that citizens rely on the banks for solutions on matters
relating to mortgages, loans,
and insurances services.
Modesty- is the humility and deed in thought in what we do.
Deeply concerned with the
welfare of the citizen and the foreigners, the banks are offering
services to the people regardless
of their economic status, religious affiliation, and political and
social status.
Innovativeness- it is nurturing and fostering imagination thus
creativity for betterment

of the citizens. Online portal, e-banking, ATMs, Visa,
MasterCard’s, and Mobile Business
including the point of sales operate in various parts of the
nation. With the digitization, the
electronic platform ensures the people get the services wit h a
single click anytime. It is not
possible to set up branches in every villages and urban centers
but with the electronic
dashboard, the client accesses their accounts, withdraw and
deposit at the designated point of
sales across the kingdom. Addition, the Islamic banking goes
with the Muslim faithful thus
serving the people.
Meritocracy- is differentiating, reinforcing, and defining
excellence in customers. It is
on record that within the banks, there is division of products

and services according to their
purpose. Islamic banking is meant for the Muslim faithful,
Ladies banking is for the women,
and online banking for the younger digital generation.
39
Care for the society- this is contributing to the welfare of the
society and for the
betterment of the future generation. The banks are offering
scholarships, seminars, and
workshops both traditionally and digitally. With the technology
hybrid, the audiences are many
and a potential client looking for advices and assistance is
easier than done.

4.1 Results from questionnaire
We want to measure the effects of digitalization in Saudi
banking sector and analyze
data using SPSS software program. Our population will be
people who living in Saudi Arabia
and our sample consists of 299 persons from Saudi living in
different area.
Now, we are going to do one sample t test for the variable,
customer satisfaction (in
terms of percentage). By this we are testing the statistical
difference between the sample mean
in the case of customer satisfaction and the known or
hypothesized value of the mean (50%) in
the population. We have to test, H0: µ = 50% Vs µ ≠ 50%.
We can make an initial interpretation of the data using the one
sample statistics table,

which presents relevant descriptive statistics:
Table 4.1
One – Sample Statistics:
Give the rang of customers
satisfaction in termof percentage
N Mean Std.Deviation Std.Error Mean
299 74.331% 16.11267% 0.93182%
The above table shows the sample size, mean S.D aand standard
error of the mean. Source:
research paper.
40

The standard error shows the inability of the t test to perform
correctly. Here, it is
0.93%. Using the standard deviation, we can say that, the mean
depression score (74.3311±
16.11267) was lower than the population ‘normal’ depression
score of 50.
Table 4.2
One – Sample Test:
Give the rang of
customers satisfaction
in termof percentage
t

df
Sig- (2
tailed)
Mean
Differences
95% confidence of the
Differences
Lower Upper
26.111 298 .000 24.33110% 22.4973% 26.1649%
The above table shows the sample t-test value,
meanDifferences, and 95% confidence of the
Differences. Source: research paper.

The test statistic value is t = 26.111with 298 d.f. In the above
table, moving from left-
to-right, we are presented with the observed t-value (t), the
degrees of freedom (df), and the
statistical significance (p-value) (sig.2 tailed) of the one-sample
t-test.
We know that if the p value is less than the significance
level α, then we can reject the
null hypothesis. Otherwise, we can accept our null hypothesis.
We have t (299) = 26.11 with 298 df and p value = 0.000
Here, our obtained p value < 0.05 (it is p = 0.00). Therefore, it
can be concluded that
the population means are statistically significantly different. If
p > 0.05, the difference between
the sample-estimated population mean and the comparison
population mean would not be

statistically significantly different. We conducting the one
sample t test in the assumption that,
41
all the samples exactly like the population. The t test in SPSS
provides the confidence interval
also. The 95% confidence interval of the difference is (22.49,
26.16).
From the first table (descriptive statistics table) we can see that
the sample mean is
74.33%. After conducting the one sample t test, we can see that
the mean difference is
24.3311%. Here, the test value is 50%. So, we can conclude that
the sample mean is same as

that of population mean with a difference of 24.3311%. Here,
the “sig. (2-tailed)” value
is”.000”, this actually means that p < 0.0005. It does not mean
that the significance level is
actually zero.
Figure4.1:
Exhibit 1 showing normal Histogram for range of customer
satisfaction in terms of percentage
42
4.2 Results from the financial statements
4.2.1 The Al-Rajhi Bank

According to the financial records including annual reports and
cash flows, it is
impactful in the last three years. The sales, customers, revenues,
and equity have increased
significantly. From a close analysis of profitability, liquidity,
and performance, the ratios are
evident from the tables in the appendices. Though not
calculated, the steady increase in the
capital from previous years summarizes the case. This part of
the paper focuses on the results
of digitalization to the banking sector. This is the first part that
discusses the results of
digitalization of AL-Rajhi bank. The reports have arrived after
the analysis of questionnaire
and content analysis. The bank has been able to adopt the new
technology in the banking sector.

Some of the technologies which are available are electronic
banking which enhances the
customer to make the transactions to take place at all time. The
uses of ATMs which enhance
clients to make the withdrawal of the money anywhere, the
machines were well supplied in all
regions. The ratios summarize the growth of the banks in the
recent past after the introduction
of internet banking.
This part represents the financial performance of the bank as
results of technological
advancements. The bank is recorded as the leading as the
international banking group. The
total amount of assets of SAR 267 billion which is equivalent of
US71.2billion, the bank has
an overall of the capital of 15 billion which is the same as US$
4 billion. The bank has a

capacity of employing a total of 9000 workers. In the year 1987
was recorded as the Saudi
shareholding company. The return was gotten as result of
increased service to customers.
In addition to financial performance, the bank has been able to
spread to different
regions of the country and outside the country. Through
networking system the bank has
established some ATMs; in the year 2013, the bank was able to
open a total of 3505 ATMs.
43
The well-distributed ATMs facilitated serving the customers
from different areas without

necessarily moving from one bank to another. The ATMs save
the time and money through
reduced transaction cost and strategies. Furthermore, the bank
has at least 492 branches this is
effective to the customer's services. In case the customers have
to complain that requires
consolation from the head of the organization then the clients
are easily served.
The statistics show that the bank is one of the leading and has
made progress since it
recorded a net income of SAR 7378 million which can be
converted to be US$ 1.9 billion; this
was extracted in the year 2011. On the same note, the bank
recorded SAR 7890 million. This
is a clear indication that there was a notable improvement in the
finances. The bank has
enlarged it operations through developing of the new programs.

The leadership style has
changed over a period of time since the bank adopted the new
production technologies. The
coordination and management have become easy since the
systems are centralized.
The new methods of solving the major challenges in the banks
have changed since the
human errors have been eliminated by the use of computers
which are not prone to making
mistakes. The numbers of workers have reduced with increased
number of customers since one
employee can serve ten customers at the almost same time. The
new technology has enhanced
the customers to access the shares through the mobile phone,
and this was an achievement since
the other banks were not able at that time. Currently, the bank
has over one million internet

banking users. The development of 600000 apps has enhanced
the customers to work their
calculations concerning money easily.
The AL- Rajhi bank has resulted in a new product that is
updated stock; the interested
customers can access the information about the stock and make
the transactions through a
screen which has the connection with the Electronic securities
information system. It acts like
44
the stock exchange market where customers can buy and sell
their shares freely in local Saudi
share.

The interpretation is that the company has been improving from
one financial year to
another. This shows positive increments as result of the good
application of the technology in
the banking sector.
4.2.2 The Riyad Bank
The second bank in discusses Riyad banks in the competitive
environment where the
bank operate there was the need to adopt the new technology to
make a healthy competition
and make maximum profits as well as improving the customer's
satisfaction. The bank
management realized that the traditional methods of offering
services to members were
resulting in minimal development and profitability.

The online portal has been lauded as the most effective way of
banking wherever one
is at due to the simplicity, intuitive interface, and design of the
dashboard. The security features
are well impacted to secure the accounts and their balances. The
appropriation of earnings
follow an applicable and relevant regulation under the policies
in sharing the dividends as
indicated below. A total of the 25% of the net profit acts as the
statutory reserve. The fee is
scrapped or paid up once the transfers are completed. The
distribution of the specified
percentages is equitable done among the stakeholders with each
get their ratios as per the
shareholding and the recommendations made by the Board of
Directors. The strategic direction
of the annual and interim dividends and the proposal is per the

recommendations.
On the other had he also noted that the departments were
depending on each other to
get the clients records? This made it more difficult this too was
challenging to have access to
systems, and this increased the degree of risk in the
organization. The Riyad Bank management
45
was able to recognize the benefits which would be gained by
moving from the manual –based
system to computer-based system, which facilitated staffs to
effectively manage the content,
save time, money and enable effective customer services.

Taking control of over million documents was a result of
advancement in the
technology. Together with the IBM, the bank was able to adopt
a program that was able to
store the large data which was received from the customers'
records. This was possible through
the centralized electronic devices. Currently, the Riyad Bank
has an ability to store over two
million files through electronic devices such as the computer.
The bank receives more than
50000 new images on daily service. The files are as results of
customers opening new accounts
and access to loans. With the current improvement in the
technology in the banking sector, the
bank has developed the system that works in the same way
through the use of networked
systems.

The second result is accelerating access to information, in the
past; it took a long time
for the customers to access to the needed information since the
bank required a chance to make
the information necessary. It is possible with the current
adjustment in technology the access
of the client information within no time. This follows the
networked computer services where
registered customers with the password can open the common
website to post or get intended
information.
The third result of digitalization in Riyad banking sector is the
efficient content
management. Some few years back the bank was faced with the
problem of sorting out
documents to send to the responsible department. The new

technology makes it easy to sort the
documents automatically this reduces the time and tiresome job.
This time is used in improving
the quality of products and services offered.
46
Also reducing risk and saving money, Riyad Bank has been able
to reduce some of the
costs. This is done by lowering the expenses; some of them are
a significant number of
employees and the initial cost of carrying transactions from one
account. This cost reduced the
gross profits of the bank. The digital operations eliminated the
risk which was caused by

manual process and several processes through the use of the
programs and software found in
computers. The information which is reported is accurate and
timely. With the new system,
the cost of operations is reduced this boosts the profitability of
the bank.
Moreover, the better performance of the bank and customers
satisfaction is reached.
The primary target of adopting the new technology was to
improve the bank performance
regarding profitability and growth. With the current
technological changes, the bank has been
able to extend its branches to a different part of the country and
outside the country. With the
increased number of clients, the bank can have access to enough
capital for its operation. It is
evident that the gross profit of the bank has increased over the

last five years since the
introduction of the new technology.
On the other hand, the customer's services and satisfaction have
arrived as result of the
new technology. Customers can now access their account at any
time for 24 hours for seven
days. The faster movement of information from the bank allows
the clients to make the quick
decision in their trading activities. On the same note, the
customer can transfer their money to
different accounts with minimal charges. The increased
transactions with satisfied customers
increase the earning to the bank.
In general Riyad Bank has kept the records since the
introduction of the new banking
technology or what is referred to as digitalization. It is the

largest financial institution in the
Saudi Arabia and the Middle East. It is known for its strong
retail and corporate banking
franchise. The records show that the bank operates more than
300 branches in the country and
47
outside the country. The bank has been working together with
Saudi business machine which
provides high-class technological solutions to the institution.
For the development of new
services and products, it has been in front line to make the
contribution. Some of the products
and services are Master card which enhances the customers to
buy and sells goods without

having the solid money. The Visa card has been used to make
travels from one geographical
area to another. Lastly, the standardized system enhances the
customers to receive the
information at the same time.
In the business technology governance in the mission the
department is strengthening,
monitoring and controlling the business technology of the bank.
The information security is
necessary to implement and control the likelihood in the
emergence of new threats. With the
digital devices and online banking taking place, there are
initiatives to mitigate the security
risks facing the clients and the safes. In 2014, the firm launched
a variety of marketing and
promotional programs meant to increase the corporate and retail

banking. There are a variety
of marketing and communication channels with smart
multimedia platforms.
The information sharing and promotion creates awareness to
the selected clients and
address the specific targeted audience and products. Some of
the campaign resulted to an
increased bank attendance by 64%. There is the blending of the
traditional mode of advertising
the banks with the new technology of social networking and
media channels has expanded the
reaching of the people and increasing the fan base. It is helping
strengthen the bank
competitiveness within the country and abroad. The marketing
of the banks in Saudi Arabia is
rated second in the category in keeping the women welfare and
empowerment of the Saudi

women.
By the end of 2014, the marketing roles of the bank have
intensified to affect the
complementing and supporting the system of digital and
intelligent marketing. The bank
48
response to the evolving needs and the changing landscape in
the banking industry is more
placed in the 21st century. Based on the bank statements and
data, the bank trained employees
on the communication department to keep the flow of
information steadily. Within few months,
the bank was able to accomplish concrete and rapid

accomplishments and charities in the
platform like Facebook and Twitter. There are marketing
screens all through for campaign thus
reaching many potential clients. In the selected branches, the
effective communication with the
financial institution added another channel in the list.
‘Sharing marketing information’ is supporting all the business
division through
providing vital information and data necessary for decision
making. According to studies and
research, the indicators confirmed the customer’s expectations
exceeding the banking
transactions. It is easier to search for the information; people
spend less time and allow them
time to do their transactions effectively for a longer period of
time. There is added value of

safety, peace of mind, and excellence in the branding
department in different phases. In the
first phase, the development and modernization of the branding
project are undergoing with
the influence of the internet. The publishing and applications
reflect to the position as client-
centered facility.
The online and communication department is enhancing and
supporting the imagery of
the bank, its services, and products. The dissemination and
preparation of the media and press
materials in relation to the programs highlight the corporate,
retail, and ladies banking to attract
the distinct media presence for a variety of ways. Strategically,
the objectives of the quality
department are exceeding expectations and satisfaction of the
populace. It is evident that the

advanced techniques have led to the improvement, quality, and
continuous growth of the social
responsibility.
49
4.2.3 The National Commercial Bank (NCB)
This last part focus on results of the National commercial bank
due to technological
advancement, the bank growth and development has been
contributed by technological use in
the banking sector. Through the data which was collected and
analyzed give clear information

about the financial performance of the bank. The NCB having
adopted several changes such
as electronic banking that enhance the customers to carry their
transactions online, make
payment online and can access their account often. The use of
ATMs gives the customer a
chance to make payments and receive payments. They are able
to carry their business for 24
hours for seven days.
The following are the results of digitalization from content
analysis. As a result of
growth and development, the NCB is one of the largest financial
institutions in Saudi Arabia
region. The bank holds an explicit license from the Kingdom
government. The bank got a
degree on 20 Rabi Thani 1373H that is on 26TH December
1953. The Government realized

the bank potential in 1999 and got the majority of shares
through the Public Investment Fund.
According to table1 on the appendices, the statistics show that
the bank has a direct
ownership of 90.71% of the capital. It is considered the largest
bank in the Arab world. The
bank was able to pay out a capital of SAR 20,000 million which
is equivalent to US$ 5,333
million. The total assets at the end of the year 2016 indicated
SAR 441 million which are the
same as US$118 million. After reduction of all expense, the net
profit as at 2016 reported a
value of SAR 9317 million translating to US$ 2485 million. The
shareholder's Equity totaled
to SAR 58738 million which are same to US$ 15663 million at
the end of 2016. The fiscal year

2016 shows that the return on average shareholders’ equity was
17, 78%. Lastly earning per
share amounted to SAR 4.66 which is equivalent to US$ 1.24.
50
The statistics from the books of accounting of the bank showed
that for the five
consecutive years the bank has been indicating improvements
regarding net profit, assets and
the net profit. The research was able to give the reason behind
this, which improved customer
services with the bank were able to promote a large group of
individuals. The increased
numbers of customers that the bank served to their satisfaction
was able to raise the financial

performance. In addition, the bank was able to reduce some of
the operating costs that give the
bank an opportunity to increase the profit.
Through the technological advancement the bank was able to
enlarge its operations as
follows: At the end of the year 2016, the bank was operating
about 374 branches in the whole
country giving adequate and timely services to all members. The
data showed that the clients
exceed 5 million that numbers arrived after an increase which
was attributed to smooth
electronic services. In addition to this 94% of Saudi citizens
were employed this translated to
8035 in the year 2016. Furthermore, the bank had a total of
3189 ATMs which were well
distributed through the kingdom.

On the same note with the newly developed channels such as e-
banking, mobile
banking, and e-commerce about 94% of transactions were
carried out successfully. The NCB
was the first one to receive the international certificate on
business continuity management
which enables the bank to extend its operation to other areas.
The customer’s satisfaction is
show with the positive trend with the profitability ratios as
indicated on the appendices.
In Corporate Responsibility, the Bank is recognized by
maintaining the good
leadership. Also to enhance the bank to cover a large
geographical area and to work well with
the partnership the bank was successful in launching the new
programs. This was able to create

job opportunities to so many citizens and also enable to access
loan and other financial support.
51
The Questionnaire gave a significance results from the
individual response, and firstly
there is a positive importance relationship between
competitiveness and the introduction of
ATMs. This means that the use of the ATMs machines assisted
the bank in making healthy
competition with other recognized banks in the world. The
machines give the customer an easy
time to withdrawal their money from their bank accounts at all-
time anywhere. This resulted
in the customers being happy and increased in number.

On the other side, there is a clear relationship between
competition and online banking.
Online banking allows the clients to make transactions in their
make account and can also
receive the information at the intended time, this able to bring
change in the competitive
banking sector and so many customers were attracted to the new
services.
Moreover, there is a close relationship between marketing and
delivering bank
marketing services. To gain a large number of customers the
bank needed to market its products
and services to the general public through advertising. This was
made possible through online
exchange of information. So many potential customers were
able to gain the information and

also made a clarification on the available platforms. This
increased the customers to the bank
satisfaction.
To add on the same note the competition and mobile banking
have close relationship.
The mobile banking allows carrying out their business account
anywhere at any time. The
current improvements in the banking sector are the use of a
master card and visa card. The
master card all the customer can buy and sell goods, this
enhance the clients to receive and
make payments without using the solid cash. The Visa card
gives the clients time to travel from
one geographical region to another. This is some of the
improvement in the banking sector.

52
Recommendations
And
Conclusion
“The end justifies the
means”

53
Conclusion & Recommendations
5.1 Recommendations
This part of the paper focuses on the recommendations to the
three banks that are Riyad
Bank, Al Rajhi bank, and the national commercial bank. The
first proposal focus on Riyad
Bank in Saudi Arabia, the first recommendation is based on the
security of the bank operations
and the customer's wealth. The bank should be aware that the
customers value their money so
much; therefore the security of their money should be a
consideration. Due to the problem of
electronic fraud and hacking the bank should come up with new

methods of ensuring the
security and giving the guarantee to the members. The
recommendation is that the bank should
create passwords to the registered members only. This password
will enhance the customers to
access the online banking services and remain to be their
security. The bank should ensure that
they change the passwords after some time this is to eliminate
any person who could have come
across the personal details of the customers. The bank should
adopt new programs that ensure
that the problem of hacking is halfway solved; this can be done
by employing expertise to make
sure that they note any small change in the working systems of
the bank.
The recommendations to Al Rajhi bank, due to the widespread
of the bank operations

and the large numbers of the customers they serve, the bank
should be concerned with the
updating and be installing the new applications to solve some of
the common challenges. Firstly
the bank should ensure that the computer windows and office
application are updated, and the
latest software updates are bought from authorized sellers.
Secondly, for fast online browsing,
the bank should ensure that the latest browser is up to date. It is
necessarily for the bank to
install the Antivirus application and make sure it is up to date.
It helps to keep a large number
of files from the customers secure and all information uniform.
The bank should conduct a
5

54
regular scan to both the documents and computer applications
this is to eliminate the Internet
threats and viruses that cause the file to block. It keeps the
computers clean and documents
secure. Lastly, the firewall is healthy together with certified
applications that enhance access
to the internet. The customer satisfaction level will be reached
once they discover that the
technology is on Paramount benefits to them. It can be achieved
over the short duration of time
by the bank managements.
Moreover, the competition in the financial institutions across
the oil-rich nation is

healthy but the products provided and the commitment in the
online banking and streamlining
of the operations like their neighbors is a point to consider. The
inclusivity of the ladies sections
in the banking is a noble decision but there is more that is
needed to encourage them to seek
financial assistance through the dashboards.
The recommendation to the national commercial bank of Saudi
Arabia, the first
recommendations is on mobile banking the bank should come up
with a new strategy of
ensuring the customers uses only one mobile phone number. The
number should be registered
at the bank. It enhances to eliminate the people who may try to
use their mobile numbers to
carry their banking transactions from one account to another.
The bank should also make a

close supervision to the quality of the online services,
investment policies and the internal
rating system. It can be achieved through conduction field
research to the customers to make
the necessarily changes to customer satisfaction. Due to a large
number of the clients and
branches opened by the bank in case of risk or significant loss
the bank may slow down. To
cater for this, the bank should ensure all insurance parties are
catered for. It includes the third
motor liability for insurance. To improve the quality of services
to the customers the bank
should also ensure the computers used has high storage
capacity, this will enable the bank to
keep the extensive data from the client transactions and
increased numbers within a short

period.
55
5.2 Conclusion
The paper has been divided into different parts to deliver the
quality research to the
study question. The article has discussed the effect of
digitalization in the banking sector. Like
in other parts of the world, Saudi Arabia boasts of large
financial institutions like corporate
firms, banks, insurance companies, and multinational
companies. Some of the banks which
were selected were Riyad Bank, AL- Rajhi bank and the
national commercial bank of Saudi

Arabia. In the introduction part of the paper, several
technological advancements have been
explained. Some of them are electronic banking, mobile
banking, ATMs, Master card and Visa
card.
Riyad Bank has launched Riyad Online, Riyad Mobile, and
Riyad Business mobile that
are electronic interactive platform that enable the audiences to
seek assistance and advice and
services in the end. In addition, the bank has Islamic and ladies
banking sections that are
brainchild of the last two years. With the increasing use of
online banking in the recent, it has
become secure and convenient. It is the current technological
developments which have
resulted in the change in the banking sector. In the literature
review, the paper has examined

other researchers view on the same line with the effects of
digitalization of banking sector.
Different authors in the different period were used to bring the
desirable result of the study.
Also, the paper has outlined the tentative answers to the effects
of the technological
changes in the banking sector. A brief explanation of objectives
of the study is clear in the
paper. Furthermore, the paper has used the two primary methods
of recording the information
that is a content analysis which involves the use of the
secondary source of information, some
of the material utilized in this case is the financial statements,
journals and published reports
in the same area. On the other side, the questionnaire has been
used to collect the relevant

information to the study of different groups such as the
customers, potential clients and the
56
managements of the banks. The financial information from the
two methods is used to make
the results, recommendations, and the conclusions.
Moreover the paper focus on the result of the finding, in this
part the research showed
that there several effects of the use of technology in the banking
sector. Some of the effects
which were discovered are the increased number of the
customers over the current years is a
result technological advancement. The bank has been able to
serve a large number of customers

from the new programs and digital networks. On the same note,
the bank has been able to open
many branches across the country. The number of branches has
enhanced faster services to the
customers.
The increased number of ATMs machines in most populated
areas has helped to solve
the long lines of customers in the banks during service hours.
With the ATMs, the customers
can be able to withdrawal money at any time anywhere. It has
helped the customers to carry
their business activities for 24 hours in 7 days. The online
banking has facilitated the customers
to have close monitoring of their accounts. The clients can
check the payments of goods and
services and as well receive the payments from other accounts.

It is considered an improvement
in the banking sector. To compare the financial performance of
the three banks the statistics
show that the bank has increased the capital, the total assets,
reduced the total liabilities,
increases the total shareholder's equity and there is general
increase in the income to the three
banks. The technology has resulted in the better performance in
the banking sector as well as
customer satisfaction.
In summary, there have been increases in the number of
products, brands, branches,
faster transactions that are convenient and secure. The number
of clients since the inception of
the technology has increased while the communication and
sharing of the information with the

department is easier and instant. Over the last two years, the
financial records have improved
57
due to the online banking that allows members access their
accounts anytime. The traditional
paper work is greatly reduced and accuracy in the reporting is
evident. With the trend, the three
banks are going to dominate the Gulf region in terms of
insurance, mortgaging, loaning, and
offering other financial support.

“When you achieve the
goal, let’s remember the
former’s role”
59
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64
Appendices
“We all have ability,
The difference is how we
use it”

65
Appendices
Appendix - 1
The table below shows the financial performance of Al Rajhi
Bank how a period of three
years.
Items(SAR million) 2016 2015 2014
Total capital 24540 22899 21300
Total assets 405 316 308
Total expenses 261 217 203
Total profits 11201 10330 9990
Shareholders’

equity
51095 46339 41896
Average
shareholders’
equity
20.65% 19.20% 18.34%
Earnings per share 6,45 5.94 4.99
*Source Annual report 2016
There is an improvement in performance from one year to
another as result of improved
technology.

66
Appendix - 2
Al-Rajhi Bank profitability ratios
Ratio 2016 2015 2014
Current ratio 405/261= 1.55 316/217= 1.46 308/203= 1.51
Return on equity 24,540/51,095*100=
48%
22,899/46,339*100=
49.4%
21,300/41,896*100=
50.84%

Return on
investment
11,201/405,000*100=
2.76%
10,330/316,000*100=
2.69%
9,990/308,000*100=
2.57%
Net profit
margin
11,462/24,540= 0.47 10,547/22,899= 0.46 10,193/21300= 0.46
Average

shareholder
turnover
20.65% 19.20% 18.34%
Earnings per
share
6.45 5.94 4.99
technology.

67
Appendix - 3
The table below shows Riyad bank financial performance for
three years:
Items (SAR million) 2016 2015 2014
Total capital 23490 22899 22600
Shareholders’
equity
37756 36774 36004
Average

shareholders’
equity
18.57% 17.56% 16.89%
Earnings per share 5.74 5.33 4.03
technology.
68

Appendix - 4
Riyad Bank profitability ratios
Ratio 2016 2015 2014
Current ratio 245/217= 1.13 230/219= 1.05 216/209= 1.03
62.21%
22,899/36774*100=
62.22%
22,600/36,004*100=
62.77%
Return on
investment

10,340/245,000*100=
4.22%
9,997/230,000*100=
4.00%
8,444/216,000*100=
3.91%
Net profit
margin
11,462/24,540= 0.47 10,547/22,899= 0.46 10,193/21,300= 0.46
Average
shareholder
turnover

18.57% 17.56% 16.89%
Earnings per
share
5.74 5.33 4.03
technology.
69
Appendix - 5

The table below shows the financial performance of National
commercial bank in three years:
Items (SAR
millions)
2016 2015 2014
Total capital 20000 19453 18452
Shareholders’
equity
58738 55017 49048
Average

shareholders
turnover
17.78% 15.34% 12.78%
Earnings per share 4.62 4.03 3.67
technology.
70

Appendix - 6
National Commercial Bank profitability ratios
Ratio 2016 2015 2014
Current ratio 440/230= 1.91 404/225= 1.79 318/217= 1.47
34.05%
19,453/55,017*100=
35.4%
18,452/49,048*100=
37.62%
Return on
investment

9,817/440,000*100=
2.31%
8,945/404,000*100=
2.21%
6,720/318,000*100=
2.11%
Net profit margin 20,000/29,817= 0.67 19,453/28,398= 0.66
18452/25,172= 0.73
Average
shareholder
turnover
17.78% 15.34% 12.78%
Earnings per

share
4.62 4.03 3.67
technology.
71
Appendix - 7
MEASURE THE EFFECTS OF DIGITALIZATION IN SAUDI
BANKING SECTOR

SHEET NUMBER:
AGE:__________________
LOCATION:______________________________
OCCUPATION: _______________________________
LEVEL OF EDUCATION:
a. Elementary
b. High school
c. Graduate
d. Higher education
1. Are you familiar with the technology used in banking sector?
a) YES b) NO c) To some extend
2. How do prefer to perform your finical transaction:
A) Visiting bank branch b) using

banking technology
3. Mark the most used technologies below:
a) Mobile banking
b) Online banking
c) ATMs
4. How do you measure the bank performance affected by the
new technology, mark
one.
72
a) It has positively improved b)
The results are the same
c) It have negative results

5. How do you measure the security level of digital
transactions?
a) High b) Moderate c) low
6. If the performance is affected in which way? Mark at least
two.
a) The financial performance is better b) The customer
services have increase
c) The economy has grown d) All the above.
7. Is there a relationship between digitalization and banking?
a) YES b) NO
8. Give the range of customers’ satisfaction in terms of
percentage.
a) 25% b) 50% c) 75%
d) 100%
9. Do you agree with electronic changes in the banking sector?

a) Strongly Agree b) Agree c) Neutral d)
Disagree e) Strongly Disagree
10. It is considered easy to use electronic channels
a) Strongly Agree b) Agree c) Neutral d)
Disagree e) Strongly Disagree
11). Do you thing digitalization the services will be competitive
between Saudi banks?
a) Yes b) No
c) To some extend
12). Do you thing the digitalization will speed up your banking
services?
a) Yes b) No
c) To some extend
Title Page: Competitive advantage in the banking system.
Abstract

The paper aim to discuss the advantages of having competitive
advantage in the banking system. For example, RIYAD Bank
might offer a service at a lower price and more convenient and
desirable to clients which will allow them to generate revenue
and margin more than market rivals , Competitive advantages
include cost , brand , quality and most importantly customer
service . Also, the research will address RIYAD Bank services
and products aligned with achieving the objectives of the vision
of 2030..The main aim of the research is insuring meeting
customers expectation, satisfaction of the services provided in
order to increase the development of the economy , also a study
of the upcoming merge between the two largest Saudi Banks
(RIYAD Bank and NCB ) and its positive impacts on the
economy , customers .One of the objectives of the research is
addressing the importance of Digitization in the banking sector
especially in RIYAD Bank and its relationship with attracting
more customers , ensure their satisfaction with the services
provided and the quality of the services . Finally, a comparison
between Banks to understand the customer behavior and choice
and preference. The data collection will include a questioner
and a survey to employees, clients to support findings.
keywords:
Banking system, Banking Sector, Competitive advantage,

digitization .
Table of contents (Plan)
Title page (required): The Strategic practices of Human
resource management and Organization's Performance: "Applied
Study on caribou coffee in Saudi Arabia"
• Abstract (required)
Maximum 250 words: Should reflect the content of the research
(More details in the template file).
• Acknowledgments
• Preface (optional)
• Table of Contents (required)
• List of Tables (optional)
• List of Figures (optional)
• List of Symbols (optional)
• List of Keywords (optional)
Introduction
………………………………………..…………………..………….
………….P1
· Statement of problem

· Purpose of study
· Research Questions/Hypothesis
Part 1.Literature
Review………………………………………………………………
….…. P3
Chapter 1. The Overall Framework of Strategic practices of
Human resource management
i. Introduction.
ii. Human Resource Management; concept and construct
iii. Objectives of Human Resources Management:
iv. The Strategies; concept and construct.
v. Human Resources Strategic Management.
vi. Types of Strategic Management of Human resources.
vii. Human Resources Practices Strategies:
1.1.1. Selection and Recruitment.
1.1.2. Training and Development
1.1.3. Wages and Incentives.
1.1.4. Employee Performance evaluation.
i. Conclusion
Chapter 2. The Organization Performance
i. Introduction.
viii. Organization Performance; concept and construct.
ix. Organizational Performance Levels
ii. Organization’s Performance Management.
iii. Organizational Performance Standards.

iv. Organizational Performance Characteristics
v. Measure: Balanced Scorecard:
1.1.1. Learning and Growth
1.1.2. Customer Satisfaction
1.1.3. Operational Procedures
1.1.4. Financial Status
I. Contributions of Performance Measurements
II. Conclusion
Chapter 3. Relationship between Strategic Practices of Human
Resource Management and Organization’s Performance
i. Introduction.
ii. The Impact of Human Resources Element on Organization’s
Performance.
iii. The Impact of Applying Human Resources Strategic
practices on Human Resources Management.
iv. The Impact of Applying Human Resources Strategic
practices and The Competitive Advantage.
v. The Impact of Applying Human Resources Strategic practices
and The Total Quality.
vi. The Impact of Applying Human Resources Strategic
practices on Organization’s Performance.
vii. Conclusion
Part 2. Empirical study

Chapter 1. Methodology
I. Research Design
II. Sampling
III. Instrumentation
III.1. Instrument 1
III.2. Instrument 2
III.3. Instrument 3
IV. Data collection & Analysis Procedures
Chapter 2. Discussion
I. Discussion of results
II. Implications and limits
Conclusion
References
A Study of the Effects of Social Media (Facebook and Twitter)
on Consumer Confidence: Case of Saudi Arabia.
(
iii

)
Abstract
In today’s global environment, companies are constantly
looking for new, modern, and innovative ways to reach
customers and have a significant influence on them. Many
companies have started to use social media websites to
influence the customers’ decisions of purchase; these social
media websites include Facebook and Twitter. However, the
effects of these social websites on the consumer’s behavior,
confidence, and decision-making have not been studied in Saudi
Arabia. In this quantitative research study, we investigate the
effects of social media websites, specifically Facebook and
Twitter, on the Saudi consumer confidence. We use a Likert-
like scale of 1-5 survey to ask respondents to answer various
questions about their purpose of using social media networks
and how the communities within these networks influence their
decisions about what they purchase online. The sample size of
the questionnaire is 130 responses, which includes only Saudi
consumers. We analyzed the data using frequency tables and
Analysis of Variance (ANOVA). The findings of the study
showed that Facebook and Twitter social sites have a very small
positive influence on the Saudi consumer’s confidence, hence,
Saudi consumers’ online purchasing behavior does not change

under the effects of these social sites. This study is mainly
beneficial for companies’ marketers who use social media
channels to reach Saudi consumers. We provide
recommendations for researchers and managers to solve the
problem of weak confidence of Saudi consumers in Facebook
and Twitter. We provided recommendations for researchers and
managers to solve the problem of weak confidence of Saudi
consumers in Facebook and Twitter pages. Recommendations
are provided for researchers and managers including
professionals in the sector to improve the Saudi consumers’
confidence.
Keywords: Social media, Facebook and Twitter, Saudi
consumer, confidence, Effects.
Acknowledgments
This research is dedicated to my loving husband, Louay, who
was at my side throughout this journey, giving me the
encouragement to keep moving forward and helping me stay
focused on the goal. I would also like to acknowledge the love
and support I received from my family, especially my mother,
who is always praying for me and encouraging me.
Many thanks to Dr. Zahra Ghali for providing the right mix of
guidance and inspiration during my research project journey.
The experience was smoother and more meaningful due to Dr.

Zahra’s influence. Dr. Zahra will have my undying gratitude for
providing her insights and scholarly expertise throughout the
research and writing processes.
Table of Contents
Declarationii
Certificateiii
Abstractiv
Acknowledgmentsv
Table of Contentsvi
List of Tablesix
List of Figuresx
Introduction to the Study1
Problem Statement4
Research Structure6
Chapter 1: The Social Media and Consumer Behavior7
Introduction8
The Utilization of Social Media Websites8
Communication9
The Effects of Social Media on Users10
The Emergence of Social Media Websites (Facebook and
Twitter)14
Facebook.14
Twitter15

Conclusion17
Chapter 2: Consumer Confidence in Social Media18
Introduction19
Consumer Confidence19
Components of Consumer Confidence22
Honesty22
Credibility23
Consistency23
The Effect of Social Media on Consumer’s Confidence24
The Consumer Confidence in the Middle East26
The Role of Social Media in Facilitating Communication in the
Saudi context28
Saudi Consumer Confidence31
Conclusion32
Chapter 3: Research Hypotheses and History of The brands
Studies: Zara and H&M34
Introduction35
Hypotheses36
H1: Honesty36
Credibility37
H3: Consistency39
History of Zara40
History of H&M42
Conclusion43
Chapter 4: The Study45

Methodology46
Data Analysis48
Frequency Tables48
Analysis of Variance (ANOVA).64
Discussion of the Results65
Recommendations66
Conclusion: Findings, Limitations and Recommendations for
New Research Ways68
Conclusion68
Limitations69
Recommendations for New Research Ways.70
References72
Appendix A81
Appendix B83
List of Tables
Table 1: A Comparison of Consumer’s Confidence Level in
Companies in Some Countries26
Table 2: Percentages that Show the Usage of Social Media
Among Internet48
Table 3: Percentages that Show the Users’ Believe in Facebook
and Twitter as Social Media Sites49

Table 4: Customers’ Preference Between Social Media And
Traditional Media50
Table 5: Response Percentages of Respondents Interest in
Becoming Fans of Zara and H&M Brands through Facebook
and/or Twitter51
Table 6: Consumers’ Usage of Social Media to Learn
Information on Products52
Table 7: Percentages that Show the Degree to which Social
Media Reaches Customers of Fashion Retail Industry53
Table 8: Frequencies of the Number of Users who Receive
Retail Promotions through Social Media.54
Table 9: Customers’ Preference towards Facebook55
Table 10: Customers’ Preference towards Twitter56
Table 11: Saudi Consumers’ Opinions on Social Media
Reviews.57
Table 12: Consumers’ Purchase Decisions58
Table 13: Customers’ Trust in Facebook and Twitter59
Table 14: Credibility of Social Media61

Table 15: Honesty of Zara and H&M Social Sites62
Table 16: Consumers’ Trust of the Brands Service63
Table 17: ANOVA Analysis of the Components of Consumer’s
Confidence64
(
x
)
List of Figures
Figure 1: A Comparison of Confidence Level in companies in
Some Countries in 2015.27
Figure 2: Customers’ preference between social media and
traditional media50
Figure 3: Percentages that show the degree to which social
media reaches customers of fashion retail industry53
Figure 4: Saudi consumers’ opinions on social media reviews.57
Figure 5: Consumers’ purchase decisions.58
Figure 6: Customers’ trust in Facebook and Twitter60
Figure 7: Credibility of social media61
Figure 8: Honesty of Zara and H&M social sites.62
Introduction to the Study

Nowadays, the access of companies to customers via traditional
methods for advertisements and marketing is neither practical
nor satisfactory. The results of this traditional access are no
longer adequate or profitable. Therefore, it was necessary that
these companies find new, modern, and innovative ways to
reach customers and have a significant influence on them.
Online advertising is a new style in advertising and marketing
(GfK, 2016). Many companies have started to use social media
websites to influence the customers’ decisions of purchase. Two
of the most well-known social media websites are Facebook and
Twitter.
According to Mashabek (2015), there is greater demand from
investors on successful companies, which develop and use new
ways to continuously expand their sales rather than companies
that follow the old, traditional methods of sales, which prove to
be less effective day after day. As the owners’ confidence in the
future prospects of the company increases, their assessment of
the likely price of the company will increase as well.
It seems that the awareness of the role of social media in the
life of the various institutions has been growing very fast in the
recent times (Eid, 2016). Companies have begun to launch
social media marketing campaigns for institutions and
companies more effectively and increase communication
between companies and their audiences through the systematic

use of social networking sites on the Internet such as Facebook,
Twitter, YouTube and forums.
Organizations have begun to realize that the use of social
networking sites is not only designed to communicate
information or specific messages about their products (Eid,
2016). As was previously the case when companies established
a special website on the Internet to inform its customers about
the company and its products, but offers this concept to create
mechanisms for communication between the institutions and the
public and activates public relations in general.
As the impact of customers’ feedback and opinion is essential,
customers are directly addressing the institution to demonstrate
their views and opinions about the company’s marketing
activities, social, and informational honestly and without an
intermediary. This direct relationship between customers and
the companies enhances the reputation of the company and
increases customers’ loyalty to its products.
With the increase of social network users, especially the most
popular Twitter and Facebook (Eid, 2016). The interest of
commercial companies is rapidly growing to discover how they
can benefit from them. The institutions now receive
uninterrupted flow of positive and negative public messages

around the clock via the social networking sites. This has led to
the increased attention of marketers to social media as means of
low cost, and are likely to have significant impact on the
promotion of products and services process.
By using social media websites, it has become easy to evaluate
and measure the success of any advertising campaign and
identify its weaknesses and strengths (Eid, 2016). It is also easy
to identify the geographical regions that are intended by these
campaigns, in addition to other goals that seem difficult to
achieve when using traditional methods. Using traditional
methods requires companies to spend huge amounts of money to
do market research and get to know the views of the public.
PR News (2013) study indicates that users have different
opinions on whether brands should have their private
information on social media. It is important to win consumers’
confidence in the website and social media pages of the
company in order to have a successful online business.
Consumer confidence plays a key role in any e-commerce
business.
As customers’ engagement and usage of their mobile devices
and social media are increasing on a daily basis, companies
started to pay more attention to this area and consider social
(
14
)

media websites as marketing tools. After the proved success of
this marketing strategy with some companies, many other
companies started to follow their steps and use the same
strategy in order to stay competitive and achieve sustainable
competitive advantage. Two of the companies that using this
strategy are Zara and H&M.
Zara is a series of shops belonging to the Spanish Inditex group
and founded by Amancio Ortega in 1974 (Zara, 2016). This
brand is known for its successful and innovative business. It
owns more than 2,000 stores worldwide.
H&M (Hennes & Mauritz) is a Swedish company that was
founded in 1947 (H&M, 2016). The company is famous for
displaying fashion for women, men, teenagers, and children. Its
owns 2,200 store in 38 countries and as of 2011 it employed
around 87,000 people
In this research, we attempt to discuss the impact of Facebook
and Twitter as marketing tools on the Saudi consumer’s
confidence. The study will consider Zara and H&M to measure
consumers’ confidence in their accounts in social media
networks, specifically Facebook and Twitter accounts. The
study sample consists of 130 Saudi consumer. We will use
descriptive and analytical approach in the search for access to
the results.

Problem Statement
Many studies have been conducted to study the relationship
between consumer’s confidence in social media websites.
However, it is not known if the Saudi consumer’s confidence is
affected by social media websites. 93% of internet users in
Saudi Arabia have Facebook accounts (The Social Clinic, 2015).
In addition, 7.6 million Saudi users use Facebook application on
their mobile phones.
On the other hand, there are 5.4 million Twitter users in Saudi
Arabia (The Social Clinic, 2015). These users tweet more than
210 million tweets in a month. In addition, 40% of the Middle
East and North Africa (MENA) Twitter base comes from Saudi
Arabia.
Individuals in the Middle East have begun to move from
customary shopping to internet shopping. Internet shopping in
the Middle East is quickly developing and has developed by
1500% in the course of the most recent decade. With a dynamic
youthful populace and with one of the most astounding
worldwide per capita web entrance levels the internet burning
through potential is rapidly rising as one of the most astounding
in the world (Indivirtual Dubai, 2016). Associated countries
around the globe progressively utilize propelled innovation to
live, work, mingle, be educated and entertained utilizing online

administrations, for example, Facebook, Twitter, Linked In, and
numerous other social destinations.
Many clothing brands have started to create social accounts in
various social websites. Some of these brands include Zara,
H&M, Forever21, Adidas, and Aldo. Saudi consumers reacted to
this change with cautious. After some time, they have trusted
the clothing websites enough to transfer their money before
receiving the items.
This interesting information raise some questions about the
extent to which social media affects the Saudi consumers,
financially, personally, and economically. Are there significant
effects of Facebook and Twitter as tools of social media on the
Saudi Consumer’s confidence? and if so, what are these effects
and how do they affect the purchasing decisions of the Saudi
consumer? This research will answer these questions and
address these effects.
Research Structure
In this research project, we have four chapters. The first chapter
is about social media and consumer behavior. We introduce the
chapter, and then address the topics of the utilization of social
media websites, communication, the effects of social media on

users, in the addition to the emergence of social media websites,
specifically Facebook and Twitter. We provide examples of
previous research in these areas and addresses the effects of the
emergence of social media on users.
The second chapter is about consumer confidence in social
media. This chapter addresses consumer confidence in general.
The chapter also addresses the components of consumer
confidence, which are honesty, credibility, and consistency. The
next section addresses the effects of social media on consumer’s
confidence. We discuss consumer confidence in the Middle
East, and then discuss the role of social media in facilitating
communication in the Saudi context. Finally, we discuss the
Saudi consumer confidence.
In the third chapter, we present the research hypothesis and
divide it to three parts, honesty, credibility, and consistency.
We address the history of Zara and H&M and how they emerged
in the Saudi market and in the online market.
In the fourth chapter, we discuss the methodology that is used
to analyze the collected data. We analyze the data and report the
significance of the information. In addition, this chapter
includes conclusions, recommendations, and limitations of the
research.

(
Chapter 1:
The Social Media and Consumer Behavior
)
1.1 Introduction

Social media networks have changed the way consumers behave
and interact with businesses, governmental circles, individuals,
and many others. These changes have gradually emerged since
the correct utilization of social media websites. In addition,
social media has facilitated communication with businesses and
individuals. Social media networks affected the mindset of their
users and their selections and preferences. Two of the most
popular social media websites are Facebook and Twitter.
1.2 The Utilization of Social Media Websites
As indicated by Koshy (2013), the utilization of online
networking in the Arab world has expanded drastically. This use
incorporated people in general and the private existence of
online networking clients. Social media is being utilized as a
part of showcasing and promotion. The exploration directed by
Koshy (2013) has achieved the finding that Facebook and
Twitter are not being adequately used for business utilizes as a
part of the United Arab Emirates (UAE). The scientist's
suggestion for organizations in UAE is to put more in online
networking and use it adequately for business purposes.
Another research that was directed by Huertas (2015)
recognizes a more vital utilization of Facebook and online

networking in the usage of their capacity to convey the brands
by utilizing photograph sharing as a part of an electronic social
setting. The analyst reasoned that Facebook is a general
specialized apparatus normally utilized as a part of Spanish
vacationer travel destinations. What's more, the scientist found
that more than a large portion of the posts that are distributed
on Facebook by traveler destinations incorporate photographs.
1.3 Communication
According to Hajli (2013), social media has facilitated the
social communication between companies and customers. When
consumers are able to discuss with peers and view reviews of
the products, trust and credibility of the business are increased.
The findings of Hajli’s study also showed that trust has a direct
effect on the consumer’s intention to buy the product. In
addition, the usefulness of the site has been taken in
consideration as an effective factor.
A study about the online activities of 236 social media users
identifies different types of users (Vinerean, Cetina,
Dumitrescu, & Tichindelean, 2013). A division of these users
and a linear model examine how different predictors relate to
social networking sites have a positive impact on the
respondents' perception of online advertisements. The study

identifies the social media consumers, Engagers, Expressers and
Informers, Networkers, and Watchers and Listeners.
The results can assist in discovering how to engage with
different types of audiences in order to maximize the effect of
the online marketing strategy (Vinerean et al., 2013). This study
contributes to the existing knowledge of customer behavior in
an online environment in general, and on social media websites,
in specific, by providing vision through an examination of
seven significant variables on developing positive reactions to
online advertisements.
The development of social media has enabled consumers to
communicate and share their opinions and preferences (Chiosa,
2014). It also enabled them to provide companies with word- of-
mouth advertising by sharing their experiences. Social media
plays an important role in sustaining brands as their interactions
and reactions affects the reputation of the brands. Chiosa (2014)
found that social media is one of the most effective tools to
influence consumers' behaviors. It is important to consider
consumers feedback in building the brand.
According to Kralj Novak, Smailović, Sluban, and Mozetič
(2015), the use of emotions icons, also called emojis, in social
media has facilitated the communication between users. The
study of Kralj Novak, Smailović, Sluban, and Mozetič (2015)

included 83 people over 1.6 million tweets in 13 languages. The
sentiment analysis allowed the researchers to conclude that
emojis allow people to conclude interesting facts. In addition,
people tend to use emojis at the end of their tweet (when using
Twitter) or statement to emphasize their point of view and to
increase chances of prompting interaction from other users.
1.4 The Effects of Social Media on Users
In the study conducted by Häckner and Nyberg (2008), the
researchers took into account the demand linkages between
media markets and markets for advertisements purposes. The
researchers found that the market outcome is likely to be
significantly different from what is predicted by standard
oligopoly theory. However, the researchers did not take product
quality into account.
The study’s findings showed that the brand pages under the
presence of CRM campaigns yielded a greater intention to join
the brand page and a greater intention to invite their friends to
the brand page compared to those without a CSR campaigns
(Jeong, 2011). The presence of CS campaigns on the brand
pages showed mixed outcomes in terms of the pattern of
consumer response to brands. This indicates that the presence of
any kind of CSR campaign (i.e., either the CRM campaign or

the CS campaign) resulted in the greater intention of consumers
to become fans of the brands in social media, as opposed to the
absence of CSR campaigns.
The purpose of the study conducted by Jeong (2011) is to
examine the effectiveness of two Corporate Social
Responsibility (CSR) campaigns on the favorable response of
consumers to the
brands in a social media setting, such as Facebook. The study
suggested that consumers would be mobilized to present
socially favorable images to their friends by participating in
joining and inviting activities on a social media brand page
featuring the CSR campaigns. It integrated the roles of friends
and brand image into the impression management context in
social media.
Wen (2012), has conducted a study that contributes in
discovering how online customers perceive the quality of the
shopping websites and applications. The study also addresses
customer satisfaction and the factors affecting customer’s
behavior and intentions towards online business. The findings
of the study showed that quality has a positive influence on the
consumer’s satisfaction and his intention to repurchase. The
findings also showed that it is Important to increase the
customer’s loyalty since it generates positive word of mouth,

the intention to repurchase, and the intention to pay more for
the product. Finally, the researcher discovered a positive
relationship between the perceived quality, customer
satisfaction, and behavioral intentions.
A study conducted by Martinka (2012), has discussed the ways
offline communities impact consumers’ actions and assist in
creating cultural norms and ideologies. By using Mead’s theory,
the study addressed Facebook and Twitter communities and
their influence on consumers’ online purchasing decisions. The
findings of the study proved the significant influence of
Facebook communities on consumers’ online purchasing
behaviors. In addition, the study also found that Twitter
communities had almost no influence on consumers. This study
is especially significant for marketing companies, which use
social media channels to interact and communicate with
consumers.
The location of participants in the survey was one of the
limitations of the study (Martinka, 2012). A second limitation
was time constraints. In addition, more data sources would have
provided more robust results.
The use of social media and social networking websites in
particular has changed the nature of consumers' marketplace
behaviors and decision making (Govoni, 2012). This research

addressed how marketers must familiarize strategies to
maximize the influence of online initiatives. The researcher
believes that the social media is constantly changing and that
managing a marketing campaign can be overwhelming and
expensive.
According to Goh, Heng, and Lin (2013), they conducted a
study by integrating qualitative user-marketer interaction
content data retrieved from a fan page on Facebook. The
researchers then quantified the impact of community contents
from consumers and marketers on consumers' clothing purchase
expenses. The authors used content analysis to reach the
findings, which include the confirmation of the positive effect
of social media on consumers’ purchases.
On Forbes (2013) research, the researcher analyzed the type of
product purchased, the cost of the item, and many other product
dimensions that are related to the consumer’s decision to
purchase to study the effects of social media on consumers’
behavior. The researcher offered the results of the study with
recommendations for future research.
Mintel is a supplier of consumer, product and media
intelligence. Mintel's social media analyst team has announced
the five superior trends in online consumer marketplace
behavior, which were identified and selected from an extensive
research into the strategies employed by Fortune 500 companies
across the United States (2013). The power and influence of

peers is emphasized as the opinions of family, friends, and other
peers affect consumers’ purchase
decisions. In addition, brands have the leveraging the power of
geolocation, which has grown beyond the checking in activities
in applications like Foursquare
According to consumer research run for Mintel's Social Media
series (2013), about 16 percent of people search for reviews of
brands for mobile phones. Despite the existence of long- term
mobile phone contracts, an average of only one in ten mobile
phone users have researched reviews of mobile service
providers online.
The purpose of the paper by Rohm, Kaltcheva, & Milne (2013)
is to analyze the role of social media platforms such as
Facebook and Twitter among younger consumers in their
communications with brands. To investigate this, the authors
conducted a mixed-method study that includes latent class
analysis (LCA) to examine the role of social media among
younger consumers, who are referred to as digital natives, in
their interactions with brands. Mixed-method approach
including both qualitative analysis and LCA was used to
analyze daily interactions between consumers and specific
brands across two primary social media platforms (Facebook
and Twitter).

The findings of the study indicate that brand-consumer
interactions driven by social media can be characterized by five
primary motivations or themes: entertainment, brand
engagement (specifically identification with or connection to
the brand), timeliness of information and service responses,
product information, and incentives and promotions (Rohm et
al., 2013). The authors have identified relationships among
these themes related to respondents' age, gender, and social
media use.
This study highlights the role of social media in helping brands
to be proactive in their consumer communications and
interactions in fields such as communicating product
information, addressing customer service issues, engaging
consumers with content relevant to the brand,
providing timely information regarding promotions and new
product launches, and fostering consumer-generated comments.
According to Investment Weekly News (2014), consumer
behavior in the context of social media is developing even for
the developed markets. Organizations are beginning to link this
channel to their overall marketing strategy. Implementing social
media initiatives that associate different marketing channels and
consumer segments is difficult. However, if implemented
correctly, they can provide companies with direct access to a

very loyal and easy to target consumer base.
The study conducted by Sameen, Manzoor, Zafar, and Balubaid
(2015) has analyzed the effects of social media on users. The
study addressed the use of social media in education, e-
commerce, marketing and advertisement, and social good. The
study also addressed the privacy issues that users of social
media face. The findings of the study concluded that social
media has a huge effect on its users and that it can be used
effectively in education, marketing and advertisements, and
many other fields.
1.5 The Emergence of Social Media Websites (Facebook and
Twitter)
1.5.1 Facebook.
Facebook is a global social media network that was founded in
2004 by Mark Zuckerberg (Farfan, 2015). In the beginning of its
foundation, it was a website for exclusive use by Harvard
University students. Starting from 2006 and until today,
Facebook is a global social media network.
The mission of this company is to provide individuals and
organizations with the capabilities that enable them to connect
around the world through its website and applications

(Farfan, 2015). The vision statement can be found in
Zuckerberg's Facebook page. It states that people use Facebook
in order to stay in touch with their friends and families. In
addition, his vision include people realizing and being aware of
the events of the world, sharing their opinions and expressing
their feelings about them.
According to Zuckerberg (2012), the mission of Facebook is a
social mission. The company is essentially a social network that
aims to connect people all over the world. It was inspired by the
huge effects that advanced technologies have made in our daily
lives. Technologies have changed the way people communicate
and share information and express their feelings about that
information. The purpose of Facebook Company is to construct
the means and tools that provide people with power to share,
communicate, express, and deliver (Zuckerberg, 2012).
The degree of proliferation and popularity of social networking
sites varies from one site to the other. The percentage of the
popularity and proliferation of Facebook in the Arab world is
87%. On the other hand, the percentage of Twitter is 32% (Arab
SMIS, 2015).
1.5.2 Twitter.

According to El-Mourad (2014), the number of Twitter users in
Saudi Arabia is seven million users, which is larger than the
population of Qatar, Kuwait, and Bahrain combined. Y2D (as
cited in El-Mourad, 2014) published a study in early 2014 that
showed that four out of every ten Internet users in Saudi Arabia
have an account in "Twitter." As for the language used on
Twitter in Saudi Arabia, the Arabic language is the most used
language with more than 90% of the tweets in Arabic.
There are many reasons for this rapid spread of Twitter in Saudi
Arabia. The most important is the availability of high-speed
Internet and the proliferation of smart phones (El-
Mourad, 2014). Saudi Arabia is a young nation with more than
50% of its population under 25 years, making it fertile ground
for the growth of newer types of technology, where the young
are fond of all that is new.
Social networking sites pose a breather for young people as a
virtual space that allows them to express their opinions freely
and without any restrictions phones (El-Mourad, 2014). In
addition, these sites constitute a rich source of information due
to the presence of a large group of journalists and intellectuals,
athletes and clergy. These networks also became a personal
shopper or a guide upon which the Saudi consumers make
decisions in their daily lives.

Saudi consumers resorts to Twitter to buy a product or use a
particular service phones (El- Mourad, 2014). Studies have
shown that 85% of Saudis are using these networks to get
feedback from their friends for a restaurant, and about 73% use
it to find places such as shops. The recommendations also play
an important role in the choices of customers, 87% of Saudis
trust recommendations from their friends about products, and
79% have full confidence in the recommendations of strangers.
The spread of smart phones that are no longer considered a
luxury but has become a necessity is difficult to do without
them has supported an increase of the popularity of social
networks phones (El-Mourad, 2014). About 80% of young
people in Saudi Arabia manage their affairs via smart phones
and via the Internet on a regular basis, especially social and
practical business needs. The ratio of Internet penetration
through mobile devices in Saudi Arabia has reached 82%.
Viacom agency indicates in a report that 39% of young people
in Saudi Arabia prefer to stay in their homes instead of going on
vacation destination if the destination does not provide them
with Internet connection.
These record figures have put Saudi Arabia on a digital map and
have prompted many large companies to begin to pay attention
to the Saudi consumer (El-Mourad, 2014). The giant search

engine company "Google" has sent the first official mission to
Saudi Arabia in March of 2014 to discuss the opportunities for
growth and development there.
1.6 Conclusion
Social media networks have changed the way consumers behave
and interact with businesses, governmental circles, individuals,
and many others. As the usage of social media in the Arab
world has increased dramatically, these changes have gradually
emerged since the utilization of social media websites. Social
media is increasingly facilitating communication with
businesses and individuals. They affect the mindset of their
users and their selections and preferences. Two of the most
popular social media websites are Facebook and Twitter. These
networks have attracted users and businesses from all over the
world.

(
Chapter 2:
Consumer Confidence in Social Media
)
2.1 Introduction
The social sites and social networks are some of the main
aspects of the new media, which was produced and debuted by
online revolution. It is based on new technologies such
as forums, blogs, and social networking programs. Social media

has the advantage that it is not only a medium between a sender
and a receiver. In social media websites, everyone is a sender
and a receiver, unlike traditional media, which is a medium that
sends the information from institutions to the public.
2.2 Consumer Confidence
Confidence is portrayed as a condition of being sure either that
a speculation or forecast is right or that a picked game-plan is
the best (Nickless, 2012). Self-assurance is having trust in one's
self. Pomposity or arrogance is unreasonable confidence in
somebody, or something, succeeding, with no respect for
disappointment. Individuals may have trust in other individuals
or powers outside their ability to control. For instance, one may
have trust in the police to secure them, or might have
confidence in a company to provide excellent quality products.
According to Egelhoff (2016), one of the main challenges for
new businesses is business structure. As the business grows, the
owners are constantly dealing with and building relationships
with new customers. In order to win customers’ trust, a
company must always release the correct information about the
prices and details of its products or services. A company that
has a transparent and a clear pricing strategy is more likely to
gain consumers’ trust and loyalty.

It is essential that companies build their information based on
their core principles.
Building their reputation for standing behind what they do even
when it sometimes costs them a lot. In addition, providing an
excellent customers’ service is essential for any successful
business.
Excellent service can include providing phone numbers,
feedback email access, and any other ways for customers to
notify the company when there is a problem (Egelhoff, 2016).
The longer time the company takes to resolve a problem the
more potential customers will hear about this particular
customer’s dissatisfaction with the company. In this case, the
company will not only stop gaining new customers. It could lose
its current customers as well (Egelhoff, 2016).
PR News (2013) study indicates that users have different
opinions on whether brands should have their private
information on social media: the public appears to want it both
ways when it comes to brands listening in on its social
conversations, according to study released in February by
NetBase. 51% of consumers want to talk about companies
without being listened to, 58% want companies to respond to
their complaints shared on social media.

The study found that 32% of consumers of all ages and 38% of
Millennials (18-24-year- olds) did not know that companies
were listening to what they said on social media (PR News,
2013). In addition, 43% of consumers thought listening online
intrudes on privacy. Boomers put up the biggest fight, 36% said
they do not want brands listening to what they say online, while
only 17% of Millennials said the same.
According to the Pew Research Center's Internet & American
Life Project, about 61% of Facebook users take significant
breaks from perusing the social network (PR News, 2013). The
main reason for Facebook fatigue is that people were too busy
or did not have time for it. Interestingly, privacy and security
concerns were low on the list.
According to Mashabek (2015), social media websites can
strengthen the reputation of the company in the industry in
which it operates through thought leadership initiatives. Social
networking sites act as sources of information for companies
that sell services and products to
other companies, because these sites make it easier for
individuals to communicate with others in the industry.
According to Linked In (2015), 60 percent of the members of
the site are interested in obtaining in-depth information from
the industry in which they work, while interacting in the social

networking sites.
Linked In network can put members of the company
management in the leading thinker site (through the
participation of in-depth information on the industry: the
deployment of any authentic information, and to comment on
dialogues or start them), allowing the enhancement of the
reputation of those who lead the company and the company
itself. Investors seek successful well-known companies in their
field of specialization. Therefore, they would offer a higher
price for well-known companies, which have established their
names in the business.
Social networking sites offer an abundance of ways to share
success stories and case studies that differentiate the business
from others (Mashabek, 2015). This sharing of the success
stories of the companies has an effect on increasing the
consumers’ confidence. Companies can publish their success
story through their website, YouTube channel, public relations
sites, until the company becomes visible to the public and
achieve a qualitative leap.
When the customers are viewing the company’s profile in social
networking sites, success stories can provide an inside look at
the operations of the company and its employees, while at the
same time consolidating their achievements and their image as a
creator (Mashabek, 2015). Success stories can also show
customers who are looking for products to purchase that there is

harmony between them and the company. Therefore, their
impression of the company will have more significant effect
when they attempt to buy products.
If the customer is a keen follower of the updates that appear on
the company’s page in Facebook or Twitter, it is expected to get
some information on the company's mission, objectives,
brand, and some advertisements of its products (Eid, 2016). The
discussions and debates on social media pages inspire the work
of new products sometimes. However, a negative message via a
blog or social media site can create huge losses if the company
could not reverse the situation by quickly responding to
customers’ complaints.
2.3 Components of Consumer Confidence
Gaining consumer confidence is crucial to achieving success
regardless of the ecommerce strategy that is adopted by the
company (Blatt, 2015). Consumer confidence can only be
received by hard work. It can be earned easier and faster when
the company uses these three strategies as their guide. These
strategies are honesty, credibility, and consistency.

2.3.1 Honesty
The first step to gaining customers’ confidence is by correctly
representing the products or services (Blatt, 2015). Part of the
company’s job is to make its brands' products look good.
However, the company must be careful to not mislead its
customers. There's a big difference between an attractive
representation and a misrepresentation. Any company wants
their expectations to be well met. Providing consumers with
accurate and comprehensive product information is the best way
to give consumers a representation of what will they receive
when they buy the product or order a service.
Any business owner makes a commitment to provide an
excellent service or product (Paige, 2015). A business owner
communicates only the truth using direct and indirect ways.
Business owners reveals commitment to honesty when they pay
the company’s bills and
employees. Failing to meet the corporate responsibilities
establishes a climate of mistrust and potential illegality.
2.3.2 Credibility

Credibility is an important part of a successful long-term
relationship (Blatt, 2015). It is important to maintain between
retailers and their customers. It is also the natural result of
honesty and consistency towards customers. Gaining a
consumer's trust is the first step to creating a brand that will
share their positive experiences with their friends and family.
According to a recent study by Forbes, 81% of respondents said
that their friends and family directly influence their purchase
decisions. That is a remarkable asset to retailers who are able to
win consumers' trust.
2.3.3 Consistency
Once the company has set the superiority of honesty and
credibility with customers, it is critical that it provides
consistency (Blatt, 2015). A negative shopping experience can
obliterate a great one. It is important to make sure of
consistency in the areas of product information, branding, and
customer service.
Inconsistent product information is very frustrating to
customers (Blatt, 2015). All of the product information needs to
remain consistent. Anything that could potentially confuse
customers must be eliminated. Products should be consistent

with their brandings. It is crucial that the brand connects with
the target audience. Eventually, it is more important to stay true
to core customer base than risk alienating them to attract a new
one.
Customer service department is an important part of the
company that is providing shoppers with whatever they need to
be happy (Blatt, 2015). Companies must go above and beyond
to consistently surprise and delight customers with the ability to
handle their problems by doing things like offering online
shoppers free return shipping so they feel comfortable
purchasing new products.
2.4 The Effect of Social Media on Consumer’s Confidence
Social media has led some of its users to experience social
anxiety (Kemp, 2014). Social anxiety occurs as a person has an
excessive and unreasonable fear of social situations (Web MD,
2016). Social media users, such as Facebook users, are
experiencing this anxiety as a result of their confidence in the
content of social media websites (Kemp, 2014). The emergence
of many celebrities on these social websites, witnessing their
lifestyles and positions, has affected the users and made them

feel incompetent. These celebrities motivate people to want
more and be more as a result of their confidence in social media
websites.
The confidence of social media consumers continues to
increase. According to Daas and Puts (2014), who conducted a
study about the Dutch consumer’s confidence in social media
website. The researchers created a theory that a consumer
decision is influenced by two kinds of emotions, incidental and
integral. The integral emotion is relevant for the decision ,
whereas the incidental emotion is not. Based on this theory,
consumer confidence is expected to be influenced essentially by
the incidental emotion.
The researchers found that the sentiment in social media
messages might reflect the incidental emotion in that part of the
population that is active on social media (Daas & Puts, 2014). A
strong relationship exists between consumer’s confidence in
social media and the decisions consumers make. The study
revealed a clear association between changes in the sentiment of
Dutch
social media messages and consumer confidence. It was also
proved that Facebook cause the main effect on this relationship,
followed by twitter.
According to the research of Struijs (2014), there is a high

correlation between consumers’ confidence and social media
sentiment. Another finding of the study is that Changes in
consumers’ confidence precede changes in sentiment by one
week. In addition, the researcher discovered short processing
time, which shows that time-to-market can still be reduced.
For many companies, developing a social media strategy
influences people’s spending and saving habits (Karczewski,
2014). Consumer confidence has increased 32 points since 2008.
The research also shows that consumers who are fully engaged
represent an average 23 percent premium in terms of share of
wallet, profitability, revenue, and relationship growth over the
average customer.
According to Newsweek (as cited in Karczewski, 2014), the
Unites States’ employment records are anticipated to show even
greater economic consumer confidence. The research showed
that marketing and media has a great impact on people’s
purchasing decisions. 5% of consumer stated that social media
affects their purchase decisions. The increase of consumer’s
confidence in social media has opened many opportunities for
companies and brands to educate and convince consumers
through their social media accounts and blogs (Karczewski,
2014).
Igboayaka (2015) has conducted a research about the effects of
social media on the consumer’s confidence in Canada, which
leads to economic and financial decisions made by the

consumer.
The researcher included several popular social media websites
in his research, including Facebook, Twitter, Blog, and Reddit.
The findings of the study showed the existence of online
conversations and posts related to consumers’ personal finance
and economic outlook (Igboayaka, 2015).
A paper of Liu and Lopez (2016) estimates the impact of social
media conversations on consumer judgement of brand features
and demand for carbonated soft drinks (CSDs). The researchers
formulate a random coefficient, discrete choice model of
consumer demand that includes social media conversations. In
addition, the paper estimates it matching Nielsen sales data on
carbonated soft drinks to social media chats on Facebook,
Twitter, and YouTube.
The findings of the study indicate that consumers' conversations
about brands and nutritional aspects of CSDs have an important
influence on their valuation of brand features and eventually on
their selections of CSDs (Liu & Lopez, 2016). These results
include important repercussions not only for companies that are
using social media as a strategic tool for effective brand
promotion and product design but also for public health policies
which aim to minimize the consumption of soft drinks and
unhealthy foods.

2.5 The Consumer Confidence in the Middle East
The Middle East/Africa region registered a one-point increase
in Nielsen’s latest first- quarter global consumer confidence
results with an index score of 96. Three of five countries
measured in the region also showed confidence increases.
Table 1
A Comparison of Consumer’s Confidence Level in Companies
in Some Countries in 2015.
Country
TheUnited
Arab Emirates
Saudi Arabia
Pakistan
South Africa
Egypt
Confidence Level

115
107
102
87
90
(
Egypt
South Africa
Pakistan
The
United Arab
Saudi
Arabia
Emirates
140
120
100
80
60
40

20
0
Confidence Level
)
Figure 1: A Comparison of Confidence Level in companies in
Some Countries in 2015.
According to Figure 1, the United Arab Emirates is leading the
region, with a score of 115, it showed an increase of one point
from fourth-quarter 2014 (Nielsen, 2015). Confidence also
increased in Saudi Arabia by five points to 107 and one point in
Pakistan to 102. Conversely, confidence decreased one point in
South Africa to 87 and remained steady in Egypt at 90.
The emotional feelings about job prospects has increased up one
point to 44%, while personal finances sentiment and immediate
spending intentions remained flat at 60% and 39%, respectively,
from fourth-quarter 2014 (Nielsen, 2015). Job confidence
enhanced mostly in Egypt, rising three percentage points to
43%, while the personal financial outlook in Pakistan rose five
percentage points from fourth-quarter 2014. Similarly,
recessionary sentiment improved in three out of five Middle
East/Africa markets: Egypt and South Africa each declined two
percentage points to 79% and 70%, respectively, and Saudi

Arabia declined one percentage point to 43%.
2.6 The Role of Social Media in Facilitating Communication in
the Saudi context
Social media websites and applications have provided
companies with new ways of doing business. They offered ease
and convenience to the direct communication with companies
(Wen, 2012). In the last few years, online communication
through social media has been the most used medium between
companies and their customers (Tamplin, 2015). Global
companies and known brand names have adapted to this new
medium and facilitated the interaction with customers.
One of the findings of a study conducted by Wakefield (as cited
in Currie & Lee, 2015) was that 68.9% of university students
are registered in Facebook and they view their Facebook page
daily. Another finding was that the percentage is larger for the
general public. These statistics raise some questions about the
extent to which social media websites affect their users and
influence their decisions.
Advancement of the internet and the social media has enabled
customers to have more power over their decisions and to
communicate their needs freely (Hajli, 2013). The availability
of many companies in the social media websites has attracted
and encouraged customers to communicate and interact directly

with these companies. It also have benefited the business
though the direct and indirect advertisements and receiving
consumers’ feedback.
According to psychologists and sociologists, the social
interaction between consumers and companies represents the
prominence in the communicative process between the two
parties. psychologists and sociologists have given this
interaction a special significance and considered it the basis of
the public relationship between individuals and organizations.
In addition, they believe it is the basis of communication and
the cognitive, behavioral, and emotional processes between the
connected parties (Soroor, 2015). As more companies realized
these facts, they started to consider how to increase the
effectiveness of the communication process between the
company
and the customers as there are many benefits that would result
from a truly effective communication between the company and
its customers.
Through effective communication, companies can increase
customers’ awareness of their products or services’ value.
According to a study published by Ogilvy and Mather Chat
Threads (2011) as cited by Mashabek (2015), it seems that
social media has a powerful influence on the increasing

preferences of brands. In addition, the study found that
customers are willing to pay higher prices to companies with
strong brand names.
Another benefit of effective communication between the
company and their customers is to increase sales. Social media
websites are not only mediums to reconnect with old friends.
Smart marketers (and business owners) know that the most
important social networking sites provide a variety of means to
assist in the sales development. A recent study published by
CIO.com (as cited by Mashabek, 2015), reported three
important examples to emphasize this fact: Dell Inc. made $3
million in sales from Twitter, $2 million of Starwood's sales
came from the campaign in Facebook, and 1,600% return on
investment was achieved by VMare through hosting a chat in
Google Plus. Social media websites improve service and
customer satisfactionby effective communication with their
customers. Whenever customers are happy, it is more likely that
a stronger relationship between the company and the consumer
will generate. According to Pew Research (as cited by
Mashabek, 2015), 74% of Internet users today are using social
networking.
The people (especially the older age groups at least) expect to
be able to communicate with companies via social media.
Customers monitor social networking sites for companies they
wish to purchase from in order to see the level of customer

service, how the inquiries and complaints are dealt with, and to
discover how often such complaints or inquiries occur
(Mashabek, 2015). If the business does not
take the initiative to interact with clients and deal with inquiries
and complaints, investors may cast doubt on the company’s
ability to retain customers and resale, which might make a good
pricing for the company at risk.
According to Al-Amari (2016), social media plays an important
role in our lives. The technological revolution produced what
has become known as new media, which has become a
competitor with traditional media. There is a significantly high
proportion of Internet users in Saudi Arabia, there are about 7.6
million Saudi user's of "Facebook", and more than 4.8 million
users of "Twitter", and more than one million users of the
network "LinkedIn", and more than 290 million views a day to
video clips on "YouTube."
This reality requires even charities to go to invest in traditional
and social networking media (Al-Amari, 2016). Charitable and
volunteer work needs to spread its culture as an institutionally
organized practice. The awareness of members of the
community of the services offered to many beneficiaries.
Major General Mohammed Ahmed Al Marri, General Director
of the Department of Residency and Foreigners Affairs in

Dubai, said that communication with the public through social
networking sites is an urgent need these days. He also stated
that it is a useful addition to any department or enterprise
system that seeks to provide better services (Albayan, 2015). It
is a fact that social media websites have become an integral part
of our daily operation and personal lives.
2.7 Saudi Consumer Confidence
The idea of social networking was based on the achievement of
these processes and behaviors among individuals and friends.
However, after only a few years of its inception, it penetrated
all the various sectors including politics, economy, and religion.
As a result, it began to gain the Saudi user’s confidence
gradually.
The concept of social media, or alternative media, is now one of
the most prominent social aspects of internet. Recently, it is
witnessing a dynamic movement of development. It transferred
from being a default community on a small and a limited scale
textual information tool to media audio-visual tool.
Social networking sites were able to impose forcefully as they
have become an important source for journalists, the media, and
satellite television in KSA (Soroor, 2015). These journalists,
media, and satellite television are interested in recognizing the

trends in public opinion, coordination, and networking with
journalists, scholars, and many officials on community issues.
Therefore, the effect of social media on the Saudi users has
increased.
Nowadays, the vast majority of the Saudi society have become
users of these sites, including the official and non-official
circles, public and private individuals and companies, the elite
Political clerics, academics, ministers, and even royal families.
In Saudi Arabia, the Consumer Confidence Index is part of The
Nielsen Global Survey of Consumer Confidence and Spending
Intentions (Trading Economics, 2016). The survey is conducted
every quarter by the Internet and measures the level of
optimism that consumers have about job prospects, personal
finances, and spending intentions. Twice a year, the survey also
includes questions regarding consumer habits and opinions on a
number of other issues, ranging from climate change to online
shopping and food safety.
The index levels above 100 indicate optimism and below 100
indicate pessimism (Trading Economics, 2016). This page
provides - Saudi Arabia Consumer Confidence - actual values,
historical data, forecast, chart, statistics, economic calendar and
news. Saudi Arabia Consumer Confidence - actual data,
historical chart and calendar of releases - was last updated on

March of 2016.
Consumer confidence in Saudi Arabia has decreased from 109 in
the third quarter of 2015 to 106 in the fourth quarter of 2015
(Trading Economics, 2016). Consumer confidence in Saudi
Arabia averaged 107.74 from 2010 until 2015, reaching an all
time high of 120 in the third quarter of 2011 and a record low of
95 in the first quarter of 2013. Consumer confidence in Saudi
Arabia is reported by the Nielsen.
The most prominent features of social networks are the
diffusion of common knowledge, Interactivity and participation
among users, constant intangible attendance of users, freedom
of speech, crossing barriers and red lines, and canceling cultural
differences between communities. These positive features have
affected the confidence of the Saudi consumer positively.
Therefore, Saudi consumers became more open to the idea of
shopping online and using social media as a reference.
2.8 Conclusion
The social sites and social networks are some of the most
important aspects of the new media, which was produced and
debuted by online revolution. It is based on new technologies
such as forums, blogs, and social networking programs. Social
media has the advantage that it is not only a medium between a

sender and a receiver. In social media websites, everyone is a
sender
and a receiver, unlike traditional media, which is a medium that
sends the information from institutions to the public.
Consumer confidence in social media websites has developed
gradually since the emergence of social media websites. The
Saudi consumer is now more open and accepting to social media
as tools of marketing and branding for companies. The Saudi
consumer confidence is greatly affected by the presence of
social media websites.

(
C
h
a
p
t
e
r
3
:
Research Hypotheses and History of The brands Studies: Zara
and H&M
)
3.1 Introduction
Online retail sales have grown as more people purchased high-

speed internet connections (Caesar, 2010). Another factor is
shoppers who do not have enough time to go shopping and they
took advantage of shopping from home or work, according to
industry observers. Shopping on the Internet is expected to see
sales grow in Western Europe by 2014.
However, online sales still only make up a small proportion of
total sales (Caesar, 2010). In the United Kingdom, 8% of total
sales in July were made online, according to the Office for
National Statistics "Shops that don't have an online presence
have noticed rival stores enjoying a dramatic increase in online
sales, while their sales in shops have been pretty flat,"
according to Jeremy Baker, professor of marketing at the ESCP
business school.
Online stores add to rather than seize the physical stores
(Caesar, 2010). Therefore, they tend to bring in additional sales,
according to industry observers. There is a consistent and a
clear demand for Zara’s products online, this statement was
announced by retail consultant at Verdict Research. He also
stated that it will easily complement its extensive existing store
estate and add an extra level of service for its customers.
The hypothesis of this research will be applied on two brands,
Zara and H&M. The first brand, Zara, is a Spanish brand that
was founded in 1974 (Zara, 2016). It opened its first Saudi
branch in 1999. The second brand, H&M, is Swedish and was
founded in 1947 (H&M, 2016). It is one of the most popular and

loved brands in Saudi Arabia.
3.2 Hypotheses
The previous researches in the area of social media and
consumers’ confidence and the information about the Saudi
consumer’s confidence lead to the believe that social media
websites, specifically Facebook and Twitter, impact the Saudi
consumers’ confidence. It also expected that the Saudi
consumer confidence is greatly affected by the presence of
social media websites. The hypothesis of this research is that
social media websites affect Saudi consumer confidence. The
components of consumer confidence are honesty, credibility,
and consistency.
3.2.1 H1: Honesty
According to Miller (2001), his study looked to decide the
impact of individual and expert qualities on the estimation of
trustworthiness. Since the study was correlational in nature,
direct circumstances and end results suggestions could not be
expressed. The one ward variable was the estimation of
trustworthiness and the seven autonomous variables were the

accompanying seven individual and expert qualities:
physiological/security, social/connection, regard
acknowledgment, self-completion, accomplishment,
reasonableness, and aiding and sympathy toward others.
According to Business Wire (2010), in the recovering Financial
Services marketplace new and existing providers are competing
to grow their share of an increasingly wary and cynical
customer base. Data monitor has identified ten consumer trends
that provide a vital tool for providers wanting to succeed. The
need to understand why consumers value authenticity and how
this trend drives consumer behavior is more important than
ever. The research found that authenticity and honesty will help
to break down the barriers created during the global financial
crisis.
Semaan (2012) explored the underlying role of two-sided
advertisements and social comparison measures as perceived
attainability of model’s looks in explaining these effects on
consumer honesty. The study explores four different types of
attractive-relevant products as boundary conditions for these
effects.
The findings of this study recommended that revelation of
computerized control creates higher item assessments. Three
studies demonstrated that shoppers always lean toward the

corrected notices and much all the more so when they are
informed that these ads have been digitally improved. It was
suggested that this divulgence would lead purchasers to see the
revealed modified commercials as two-sided notice and to
expand impression of model's looks feasibility and thusly
prompt good item assessments and higher self-assessments. The
literature in this area has prompted us to generate the following
hypothesis:
H1: There is a positive relationship between the utilization of
FB and Twitter to buy clothes and the consumer honesty.
3.2.2 Credibility
The consideration paid to the impact of authoritative charity on
customer reactions has encouraged a movement in the part this
practice plays in hierarchical elements - with altruism turning
into an undeniably key promoting instrument (Walker and Kent,
2013). The creators created and tried a model foreseeing that
the apparent authoritative validity will intercede the
relationship between attention to generosity and the results of
promotion and monetary penance. Furthermore, that shopper
social cognizance will direct the relationship between attention
to magnanimity and firm validity, and in the middle of
believability and the result variables.

In addition, these moderated relationships will be mediated by
perceived credibility. Data obtained from a sample of
professional golf patrons support our assertions. The findings
implicate perceived credibility as a key intervening variable in
the hypothesized relationships for the PGA Tour.
In their exploration, Wu, Huang, and Hsu (2014) proposed and
tried an expanded and brought together hypothesis of
acknowledgment and utilization of innovation (UTAUT) model,
including the extra zones of fulfillment, believability, trust, and
kindheartedness trust, utilizing an observational review of 676
OSN clients to look at the impact of these components. The
aftereffects of relapse investigation demonstrated that the four
key develops of UTAUT (social impact, execution anticipation,
exertion hope, and encouraging conditions), and in addition
fulfillment, believability, trust, and generosity trust, are all
immediate determinants of client continuation utilization of
OSN.
The investigation of Rahman (2014) investigated the
relationship between media use, validity, and political
supposition development among taught Pakistani youth. The
relationship is considered under the reason that as trust assumes
an imperative part in numerous all zones of social life, it will
impact the feeling of the group of onlookers. Taking after the

same rationale the study recommended that trust in media would
encourage media's viability in arrangement of feeling.
Discoveries has demonstrated that the in overwhelming review
of TV news channels does not have any association with the
way individuals see the validity of the channels and it
additionally does not influence the assessment making handle,
the apparent believability of the media is a more imperative
element in the development of political feeling.
The reason for the investigation of Porter, Anderson, and
Nhotsavang (2015) was to take the aftereffects of two studies to
conjecture about practice and prescribe research/banter on
business pioneers' utilization and view of online networking.
Information were considered under the umbrella of current
senior administration rehearse, with the reason to improve
recommendations for practice, however basically to guess about
the likely development of online networking worth and validity
for officials. The literature in this area has prompted us to
generate the following hypothesis:
FB and Twitter to buy clothes and consumer credibility.
3.2.3 H3: Consistency

The continuously evolving capabilities of integrating new media
into an organization's strategic mix has caused organizations,
including those in sport, to find a need to employ social media
as a marketing strategy. However, there continues to be
concerns regarding the adoption of social media and its
subsequent effectiveness and implementation. Along these lines,
Dixon's, Martinez', and Martin's (2015) study reason for
existing was to investigate the utilization and saw viability of
online networking inside intercollegiate sports offices.
Reactions from 158 NCAA Division I promoting experts were
broke down to survey online networking utilization and saw
viability. Results recommend that most games offices utilize
online networking to bring issues to light and bolster
showcasing destinations, yet few use it for raising support and
volunteer enlistment. Discoveries may help intercollegiate
games offices by giving proof based method of reasoning to
bolster the utilization of online networking as a successful
showcasing methodology. Social media offers customers a
unique service value proposition.Perceiving administration
esteem as a vital idea, the investigation of Hu, Kettinger, and
Poston (2015) builds up a total develop of online social quality,
whereby clients assess utilitarian and hedonic

advantages with respect to what they should yield in exertion
and danger in determining a worth figuring of online person to
person communication administrations which predicts
fulfillment and proceeded with utilization of online social
networking, for example, Facebook. By experimentally testing a
model that clarifies online social esteem, this exploration adds
to data frameworks (IS) hypothesis by presenting a client
esteem point of view in the online networking connection and
administrations suppliers by recognizing elements anticipating
fulfillment and proceeded with utilize that may be utilized to
enhance offerings to hold clients returning.
The findings of the research of Valos, Haji, Casidy, and
Driesener (2016) revealed that the unique characteristics of
Social Media (such as interactivity and individualization,
integration of communication and distribution channels,
immediacy and information collection) impact traditional
marketing communications frameworks. These effects showed in
12 adjustments particular to administrations and Social Media
to customary non specific IMC structures included by the
subjects of achieve, administration channel, informal
promotion, shopper created messages, tuning in, consistency,
and behavioral estimation. The literature in this area has
prompted us to generate the following hypothesis:
FB and Twitter to bay the clothes and the consumer consistency.

3.3 History of Zara
Zara is a series of shops belonging to the Spanish Inditex group
and founded by Amancio Ortega in 1974 (Zara, 2016). This
brand is known for its successful and innovative business. It
owns more than 2,000 stores worldwide.
Zara has gained experience in business and it started to become
more determined to enter a global expansion. Regardless of
cultural and geographical differences (Lopez & Fan, 2009). Zara
started its internationalization by opening a store in Israel in
1997. In 1998, Zara established branches in eight countries,
consolidating its presence in the Middle East with Kuwait,
Lebanon, and the United Arab Emirates. Argentina along with
Venezuela, Great Britain, Japan and Turkey were also added to
the list in 1998. It opened branches in nine countries in 1999,
which are Germany, The Netherlands, Poland, Canada, Chile,
Brazil, Uruguay, Saudi Arabia and Bahrain.
According to Caesar (2010), Spanish clothing retailer Zara has
opened its new online store in France, Spain, Italy, Portugal,
and the UK. Zara’s group already sells a home range online, but
its new innovative website will offer fashion lines, which have

only been available in its stores until now. The push into the
online world is interpreted as a defensive move that comes
amongst fears of a decline in High Street spending. Consumer
confidence is declining and many fear an additional economic
slowdown. Online fashion sales, meanwhile, are proving to be
strong (Caesar, 2010).
Increased strength in Internet trading has been reported by
Asos, the online market leader, which said sales increased 54%
during the January-to-March quarter when compared with the
same period of the last year.
Online retail sales are expected to double in next three years
(Caesar, 2010). Zara’s page is liked by more than 4.5 million
people who have registered as fans on Facebook. The main task
now is to convert those fans into customers. Inditex, Zara's
parent company, has overtaken Gap as the world's biggest
clothing retailer by sales. Inditex chief executive, Pablo Isla,
stated that customers should expect the initiation of online
selling for the Group's other brands in the next years.
The success of retailers such as the dedicated online fashion site
Asos proves how rapid the transition of sales from traditional
stores to the internet is, especially among the 18-34 age group
(Caesar, 2010). Zara has made a small profit in the year until
the end of January 2010, after experiencing a sharp loss during

the previous year. The company is hopeful to achieve a 10%
increase in revenue that is associated with its online store.
Zara has been selling and owning stores in the Latin America
country since 1992 (Evans, 2014). The retailer stated that the
move to sell online in Mexico is part of Zara’s plan to sell on
the websites in all of the countries where Zara owns stores. The
fashion retailer Zara sells in Mexico in 59 stores and now
shoppers in the country will be also able to shop for the Zara’s
fashionable clothing from their computers or smartphones.
The retailer, which is owned by Spain-based Inditex Group,
started selling in stores in Mexico in 1992 and said it wants to
sell online in all of the countries where it has stores (Evans,
2014). By using the new site, www.zara.com/mx, the store
enables consumers to shop for the full range of women's, men's
and children's items sold in its stores. Customers will be able to
have items delivered to their homes or pick up items ordered
online inside stores. Zara does not ask customers to pay extra
charge for delivery, which takes three to five business days.
Home delivery is free for orders which have total of more than
$68.05, while orders less than that total cost $4.16 for delivery.
Standard delivery to homes takes two to four business days. In
addition, Zara offers free returns.
3.4 History of H&M

H&M (Hennes & Mauritz) is a Swedish company that was
founded in 1947 (H&M, 2016). The company is famous for
displaying fashion for women, men, teenagers, and children. It
owns
2,200 store in 38 countries and as of 2011, it employed around
87,000 people. The philosophy of the company is to provide
trendy and quality fashion with the best prices. It employs more
than 100 designer to create a modern fashion.
In 2009, the company announced the opening of two new shops
in the Kingdom of Saudi Arabia in Riyadh on the third of April
within the expansion process (Riyadh, 2009). This expansion
process came as a result of strategic cooperation with MH
Alshaya Co., which is one of the largest leading companies in
retail sales in the Middle East sector.
The clothing retailer H&M has plans of opening online stores in
Switzerland and Russia and in nine additional countries
(Lindner, 2015). Sweden-based apparel and accessories retailer
Hennes & Mauritz AB, better known as H&M, is expanding its
global online reach. In 2015, H&M, No. 85 in the Internet
Retailer 2015 Europe 500, stated in its third quarter earnings
release that it plans to establish e-commerce sites in nine global
markets in 2016: Croatia, Japan, Ireland Greece, Slovenia,

Estonia, Latvia, Lithuania and Luxembourg.
According to CEO Karl-Johan Persson, H&M’s online
expansion to establish new stores in new countries is continuing
according to plan (Lindner, 2015). Eight new H&M online
markets have been opened in 2015, all of them have had a very
good reaction. H&M is planning to launch online stores in
Switzerland and Russia in 2016. After the completion of its
plans, H&M will have an online store in 32 countries.
3.5 Conclusion
The hypothesis of this research will be applied on two brands,
Zara and H&M. The first brand, Zara, is a Spanish brand that
was founded in 1974 (Zara, 2016). It opened its first Saudi
branch in 1999. The second brand, H&M, is Swedish and was
founded in 1947 (H&M, 2016). This
brand is continuously opening new branches in Saudi Arabia. In
2009, it has opened two branches in Riyadh, the capital city of
Saudi Arabia.

4.1 Methodology
We used a quantitative research method, which was appropriate
method for this study. Quantitative researches are more reliable
and objective (IIS, 2016). They are more convenient to use
statistics to generate findings and generalize them. Quantitative
methods of research simplify complex problems and limit its
variables. These methods of research identify relationships
between variables and are able to test theories and hypotheses.
In quantitative methods, the sample represents the population
and then results are generalized on the whole population (IIS,
2016). One of the disadvantages of this method is that it is
difficult to recognize the subjectivity of the researcher using
quantitative methods. In addition, it is less detailed than
qualitative methods that may oversee a desired response from
the participants.
We used a questionnaire consisted of 15 questions and three
dimensions. Due to time limitations, the use of the
questionnaire will allow us to collect the needed amounts of
information from a reasonable number of people in a short
period of time and in a relatively cost effective way. The
questionnaire was delivered using the online tool Survey
Monkey (www.surveymonkey.com). The questionnaire will ask

questions that respondents will answer using a Likert-like rating
scale of 1-5, which we will later analyze quantitatively.
The first part of the questionnaire, which include questions
from 1 to 7, measures the usage of the Saudi consumer of social
media websites. The first question (Is your main purpose of
using the Internet is to use social media sites?) identifies if the
consumer is a regular user of social media websites, therefore,
he would be more affected by them.
The second part of the questionnaire measures how many users
prefer Facebook and how many users prefer Twitter to
communicate and connect with clothing brands, specifically,
Zara
and H&M. This part includes questions 8 and 9 and it is used to
compare the results and identify users’ preference.
The third part of the questionnaire, including questions 10 to
15, measures the Saudi consumer’s confidence degree towards
Facebook and Twitter as marketing tools. This part is the main
objective of the survey. Users’ answers on these questions will
be analyzed and used in determining the effects of Facebook
and Twitter on the Saudi consumer’s confidence.
The sample size of the questionnaire is 130 responses. The
sample includes only Saudi consumers. Their ages from 18 to
40. Both male and female respondents were considered. The

questions that were asked were specific to Facebook and Twitter
to gain more insight into how the two social media tools affect
consumer behavior online
4.2 Data Analysis
We amassed 130 responses. The responses came from male and
female Saudi individuals. The reason for performing statistical
analysis is to translate data into numeric values in order to
make some statistical analyzes that will assist in insuring the
validity of the research hypotheses and answering the research
questions. The results will enable us to make accurate
conclusions about the data.
4.2.1 Frequency Tables
Table 2
Percentages that show the usage of social media among internet
users.
Is your main purpose of using the Internet is to use social media

sites?
Answer Options
Strongly Disagree
ResponsePercent
8.5%
ResponseCount
11
Disagree
22.3%
29
Neutral
20.0%
26
Agree
40.8%
53
Strongly Agree
8.5%
11
Answered question
130
Skipped question

0
As it can be seen in Table 2, the first question (Is your main
purpose of using the Internet is to use social media sites?)
identifies if the consumer is a regular user of social media
websites, if he was, it is more likely that he would be affected
and influenced by them. 40.8% of respondents have confirmed
that their main purpose of using the internet is to use social
media sites. This is due to the wide effect that social media
sites have influenced on users and it made many Saudi
consumers use the internet mainly to use these social sites. In
addition, 8.5% of respondents
strongly agree with the statement. This means that a total of
49.3% of respondents use social media extensively. This fact is
significant as it shows that almost half of Saudi consumers use
social media as a main purpose of using the internet. Therefore,
it would be more likely that the behavior and confidence of
Saudi consumers is affected and influenced by these social
sites.
Table 3

Percentages that show the users’ believe in Facebook and
Twitter as social media sites.
Two of the most popular social media websites used in KSA are
Facebook and Twitter.
Answer Options
Response
Response Count
Percent
Strongly Disagree
6.2%
8
Disagree
28.5%
37
Neutral
22.3%
29
Agree
31.5%
41
Strongly Agree

11.5%
15
Answered question
130
Skipped question
0
Table 3 shows the frequencies and their percentages for the
second question (Two of the most popular social media websites
used in KSA are Facebook and Twitter). The majority of
responses, 41 responses, responded with agreement on the
statement. In addition, 15 respondents responded that they
strongly agree with the statement. The reason for this result is
that Facebook and Twitter are widely used and very popular in
Saudi Arabia. This means that 43% of Saudi Consumers believe
in the popularity of Facebook and Twitter, which proves that
Facebook and Twitter are actually utilized and used in Saudi
Arabia and enhances the reliability of the results of further
questions about them.

Table 4
Customers’ preference between social media and traditional
media
I prefer social media site such as Facebook or Twitter versus
traditional media such as, TV, radio or newspaper.
Answer Options
Strongly disagree
ResponsePercent
5.4%
ResponseCount
7
Disagree
20.2%
26
Neutral
15.5%
20
Agree
35.7%
46
Strongly Agree

23.3%
30
answered question
129
skipped question
1
(
I prefer social media site such as Facebook or Twitter versus
traditional media such as, TV, radio or
newspaper.
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‫ل‬
‫م‬
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‫ن‬
‫ا‬‫و‬
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‫ل‬
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‫ة‬
‫ا‬‫و‬
‫ل‬
‫ص‬
‫ح‬
‫ف‬
.
‫ال‬
disagree
Strongly
‫شدة‬ ‫ب‬ ‫ق‬ ‫أواف‬
‫ق‬ ‫أواف‬ ‫ال‬
Disagree
‫د‬ ‫حاي‬‫م‬
Neutral

‫ق‬ ‫أواف‬
Agree
Agree
Strongly
‫ب‬
‫شدة‬
)
Figure 2: Customers’ preference between social media and
traditional media
In Figure 2 and Table 4, it can be seen that the majority of
respondents prefer the new social media versus traditional
media. In total, 59% of responses prefer social media (the green
area in the circle). This means that there are significant effects
of social media on the majority of Saudi consumers. Social
media websites have many users in Saudi Arabia and they will
be more
affected by the new social media than traditional media like
papers and television. This result increases the validity of the

research findings.
Table 5
Response percentages of respondents interest in becoming fans
of Zara and H&M brands through Facebook and/or Twitter.
I am interested in becoming a "fan" of ZARA and H&M.
through Facebook and/or Twitter.
Answer Options
Strongly Disagree
ResponsePercent
20.0%
ResponseCount
26
Disagree
39.2%
51
Neutral
19.2%
25
Agree
20.8%
27
Strongly Agree
0.8%

1
Answered question
130
Skipped question
0
Table 5 shows that 20.8% of responses state that the consumers
agree with the statement (I am interested in becoming a "fan" of
ZARA and H&M. through Facebook and/or Twitter.) 0.8%
strongly agree with the statement. On the other hand, the
majority of responses disagreed with the statement. Whereas
19.2% were neutral. This suggests that although many Saudi
consumers use Facebook and Twitter, they do not necessarily
want to follow pages of these specific brands. We can conclude
that some Saudi customers do not prefer to use and participate
in social media websites. This result suggest that Saudi
consumers’ confidence in these pages is not significant.
Table 6
Consumers’ usage of social media to learn information on

products.
I use social media to learn information on products provided by
ZARA and H&M
Answer Options
Strongly Disagree
ResponsePercent
15.4%
ResponseCount
20
Disagree
26.2%
34
Neutral
23.8%
31
Agree
28.5%
37
Strongly Agree
6.2%
8
answered question

130
skipped question
0
Table 6 shows percentages of the usage of social media to learn
information about Zara and H&M products. 28.5% of Saudi
consumers agree that they use social media to learn information
about the brands’ products. However, 26.2% disagree with the
statement and 23.8% are neutral. The significance of this
information is to show how many consumers’ actively use social
media to learn information about products and services of
companies. The percentages are close because some Saudi
consumers use social media to investigate the products they
want to buy, whereas other individuals do not prefer to do so
and would like to personally ask the seller about the products in
the store. Less than third of Saudi consumers use social media
for this purpose. We can conclude that many Saudi consumers
do not prefer to use Facebook and Twitter for product
information, which implies that their confidence in these sites is
limited. However, there are some Saudi consumers who prefer
to use Facebook and Twitter for product information.
Table 7

Percentages that show the degree to which social media reaches
customers of fashion retail industry.
I think that social media is an effective way to reach me as a
customer when it comes to the fashion retail industry.
Answer Options
Strongly disagree
Response Percent
1.6%
Response Count
2
Disagree
9.3%
12
Neutral
18.6%
24
Agree
53.5%
69
Strongly Agree
17.1%
22

answered question
129
skipped question1
(
reach
to
way
effective
an
is
media
social
that
think

I
retail
fashion
the
to
comes
it
when
customer
a
as
me
‫ع‬‫أ‬

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industry
‫إ‬
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‫م‬
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‫ا‬ ‫ارة‬‫ج‬
‫ل‬‫أ‬
‫ز‬
‫ي‬
‫ء‬‫ا‬
disagree
Strongly
‫شدة‬ ‫ب‬ ‫ق‬ ‫أواف‬ ‫ال‬
‫ل‬‫ا‬
Disagree
Neutral

‫ق‬ ‫اواف‬
Agree
Agree
Strongly
‫شدة‬ ‫ب‬ ‫ق‬ ‫أواف‬
)
Figure 3: Percentages that show the degree to which social
media reaches customers of fashion retail industry.
It can be seen in Figure 3 and Table 7 that the majority of
consumers agree with the statement (I think that social media is
an effective way to reach me as a customer when it comes to the
fashion retail industry). The percentage for the agreement is
53.5%. Whereas 17.1 strongly agree with the statement. On the
other hand, the total number of consumers who disagreed with
the statement is 10.9%. The significance of this information is
to show consumer’s opinions of how effective the social media
is as a marketing tool in the fashion retail industry. Most Saudi
consumers agreed that social media is in fact an effective tool
for marketing. The reason is that they receive offers,
promotions, and information about the products through
Facebook and Twitter. However, this result indicates that some
consumer confidence exist in Facebook and Twitter.

Table 8
Frequencies of the number of users who receive retail
promotions through social media.
I generally receive retail promotions through social media.
Answer Options
Strongly Disagree
ResponsePercent
6.2%
ResponseCount
8
Disagree
14.6%
19
Neutral
20.0%
26
Agree
49.2%
64
Strongly Agree
10.0%

13
answered question
130
skipped question
0
Table 8 displays frequencies of the number of users who receive
retail promotions through social media. More than half
respondents receive promotions and offers through social media
with 49.2% of responses who agree and 10% responses who do
not agree. It is clear that social media has reached out to
consumers and is trying to attract them with promotions and
special offers. Most Saudi consumers agree with the statement
because of the active interaction of social media accounts of
clothing brands. This fact indicates that brands are utilizing
Facebook and Twitter effectively for marketing purposes.
Table 9
Customers’ preference towards Facebook.
I prefer to connect with clothing brands on Facebook

Answer Options
Strongly Disagree
ResponsePercent
27.1%
ResponseCount
35
Disagree
45.0%
58
Neutral
17.8%
23
Agree
10.1%
13
Strongly Agree
0.0%
0
answered question
129
skipped question

1
It can be seen from Table 9 that only 10.1% of Saudi Consumers
prefer using Facebook to connect with clothing brands. On the
other hand, 45% do not prefer to use Facebook to connect with
clothing brands. In addition, 27.1 strongly disagree with the
statement (I prefer to connect with clothing brands on
Facebook). This information is significant in showing the
degree to which Saudi users are using Facebook to connect to
clothing brands. It can be concluded that Saudi users do not
prefer to use Facebook for this purpose because they do not
fully trust the information they receive from these social sites.
In addition, they do not consider Facebook as an effective tool
for connecting with clothing brands. We conclude that Saudi
consumers’ confidence in Facebook is not strong.
Customers’ preference towards Twitter
I prefer to connect with clothing brands on Twitter.
Answer Options
ResponsePercent
ResponseCount

Strongly Disagree
19.5%
25
Disagree
43.8%
56
Neutral
18.8%
24
Agree
14.8%
19
Strongly Agree
3.1%
4
answered question128
skipped question2
It can be seen in Table 10 that most responses do not prefer to
connect with clothing brands on Twitter. A small percentage of
17.9% agree with the statement (I prefer to connect with
clothing brands on Twitter). Whereas 63.3% disagreed with the

statement. 18.8% had neutral opinions to the statement. By
generalizing the information, it can concluded that the Saudi
Consumers do not prefer to use Twitter to connect with clothing
brands because they do not fully trust the information that is
found on this social site. Consumers may not view Twitter as an
effective marketing tool. We conclude that Saudi consumers’
confidence in Twitter is not strong.
(
56
) (
Table 10
)
Table 11
Saudi consumers’ opinions on social media reviews.
Before purchasing a clothing item, I check a social media site
for reviews and/or promotions.
Answer Options
Strongly Disagree
ResponsePercent
14.8%

ResponseCount
19
Disagree
27.3%
35
Neutral
24.2%
31
Agree
25.8%
33
Strongly Agree
7.8%
10
answered question
128
skipped question
2
(
Before purchasing a clothing item, I check a social
media site for reviews and/or promotions.
‫ق‬

‫ط‬
‫ع‬
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‫ء‬
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‫ب‬
‫ل‬
‫م‬
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‫ل‬
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،
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‫ب‬

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‫ت‬
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‫م‬
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‫م‬
‫ا‬‫و‬
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‫ع‬
‫و‬
‫س‬
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‫ئ‬
‫ل‬
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‫ا‬
‫ل‬
‫ع‬

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‫ل‬
‫م‬
‫ا‬
‫ا‬
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‫ج‬
‫ت‬
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‫س‬
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‫ء‬ ‫را‬
‫و‬
‫ا‬
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.
Disagree
Strongly
‫شدة‬ ‫ب‬ ‫ق‬ ‫أواف‬ ‫ال‬
‫ق‬ ‫أواف‬ ‫ال‬

Disagree
Neutral
‫ق‬ ‫اواف‬
Agree
Agree
Strongly
‫ب‬
‫شدة‬
)
Figure 4: Saudi consumers’ opinions on social media reviews.
In Figure 4 and Table 11, Saudi consumers’ opinions on social
media reviews and promotions are investigated. It is clear that
Saudi Consumers have different opinions regarding this matter.
However, the largest responses of 27.3% stated that they do not
check social media websites for promotions and reviews. On the
other hand, 25.8% have agreed with the statement. Whereas
24.2% were neutral. The significance of this information is to
show the different opinions
(

57
)
of Saudi consumers regarding checking social media before
purchasing products. It appears that Saudi consumers have little
confidence in Facebook and Twitter that makes them check the
websites before purchasing products.
Table 12
Consumers’ purchase decisions.
I buy products based on the information I receive through a
social media.
Answer Options
Strongly disagree
ResponsePercent
13.8%
ResponseCount
18
Disagree
30.8%
40

Neutral
20.0%
26
Agree
30.8%
40
Strongly Agree
4.6%
6
answered question
130
skipped question
0
Figure 5: Consumers’ purchase decisions.
(
58
)
In Table 12 and Figure 5, the frequencies of Saudi consumers’

responses to the statement (I buy products based on the
information I receive through a social media) are presented in a
table and a pie chart. This statement indicates the customers’
trust in social media, which leads to making decisions based on
the information that is available in social media. The number of
customers who agree with the statement equals the number of
customers who do not agree with the statement, which is 40
responses. However, 18 consumers strongly disagreed with the
statement, whereas only 6 consumers strongly agreed with it.
This indicates that customers who trust social media enough to
make decisions based on the information that is available in
social media websites are a less than half of Saudi Consumers,
which indicate small confidence.
Table 13
Customers’ trust in Facebook and Twitter.
I trust Facebook and/or Twitter to provide me with useful and
correct information about the product and brands of ZARA and
H&M.
Answer Options
Strongly disagree
ResponsePercent
14.6%

ResponseCount
19
Disagree
29.2%
38
Neutral
30.8%
40
Agree
20.8%
27
Strongly Agree
4.6%
6
answered question
130
skipped question
0

Figure 6: Customers’ trust in Facebook and Twitter.
In Table 13 and Figure 6, we recorded frequencies of
customers’ responses to the statement (I trust Facebook and/or
Twitter to provide me with useful and correct information about
the product and brands of ZARA and H&M) to measure
customers’ trust in social media, specifically Facebook and
Twitter. 30.8% had neutral opinions regarding this statement,
whereas 29.2% disagree with it. In addition, 20.8% agreed with
the statement. Most responses have disagreed (or strongly
disagreed) with the statement. It can be concluded that not all
Saudi consumers trust Facebook and Twitter to make purchasing
decisions.
Table 14
Credibility of social media.
I feel that the information diffused by Facebook and/or Twitter
is credible.
Answer Options

Strongly disagree
Response Percent
15.4%
Response Count
20
Disagree
26.9%
35
Neutral
42.3%
55
Agree
12.3%
16
Strongly Agree
3.1%
4
answered question
130
skipped question
0

Figure 7: Credibility of social media.
According to Table 14, the majority of frequencies of Saudi
consumers’ responses regarding the statement (I feel that the
information diffused by Facebook and/or Twitter are credible)
were neutral by 42.3%. Frequencies with disagreement with the
statement equaled
26.9%, whereas frequencies with agreement equaled 12.3%. In
addition, 15.4% strongly disagreed with the statement. We
concluded that Saudi consumers’ do not fully trust the
information in social media websites.
Table 15
Honesty of Zara and H&M social sites
I think that ZARA and H&M are honest through their messages
addressed to consumer.
Answer Options
Strongly disagree
ResponsePercent

5.4%
ResponseCount
7
Disagree
14.0%
18
Neutral
44.2%
57
Agree
29.5%
38
Strongly Agree
7.0%
9
answered question
129
skipped question
1
Figure 8: Honesty of Zara and H&M social sites.

From Table 15, we conclude that the majority of respondents,
44.2%, chose to be neutral regarding the statement (I think that
ZARA and H&M are honest through their messages addressed to
consumer). 29.5% agreed to the statement whereas 7% strongly
agreed. In addition, 14% disagreed with the statement and 5.4%
strongly disagreed. It appears that Saudi consumers do not fully
trust social media websites and base their decision on them.
Many Saudi consumers do not believe that clothing brands are
honest through their social media messages.
Table 16
Consumers’ trust of the brands service.
ZARA and H&M address favorably of its clients.
Answer Options
Strongly disagree
Response Percent
6.2%
Response Count
8
Disagree
10.1%

13
Neutral
38.0%
49
Agree
40.3%
52
Strongly Agree
5.4%
7
answered question
129
skipped question
1
In Table 16, 40.3% of Saudi consumers agree to the statement
(ZARA and H&M address favorably of its clients), which is the
largest percentage in addition to 5.4% of customers who
strongly agree. However, 38% of responses were neutral. On the
other hand, 10.1% of customers disagreed with the statement
and 6.2% strongly disagreed. This information is useful in
identifying consumers’ trust of Zara and H&M social media

pages. We conclude that some Saudi consumers trust the ability
of Zara and H&M in providing useful content on their social
pages.
4.2.2 Analysis of Variance (ANOVA).
Analysis of variance (ANOVA) is a collection of statistical
models used to analyze the differences among group means and
their associated procedures developed by statistician and
evolutionary biologist Ronald Fisher. We will use ANOVA
analysis to test the effects of social media utilization on Saudi
consumers’ confidence. The F statistic indicates the amount of
overlap between distributions. A large F statistic indicates that
the distributions barely overlap. A small F statistic indicates
that the overlap is large.
Table 17
ANOVA analysis of the components of consumer’s confidence.
ANOVA
Trust

Between Groups
Sum of
Squares 16.816
Df
3
Mean
Square 5.605
F
5.109
Sig.
.002
Within Groups
137.137
125
1.097
Total

153.953
128
CredibleInfo
Between Groups
22.370
3
7.457
8.941
.000
Within Groups
104.250
125
.834
Total
126.620
128

Honest
Between Groups
11.269
3
3.756
4.496
.005
Within Groups
103.599
124
.835
Total
114.867
127
We can see from Table 17 that the p values for the components

of consumer confidence is less than 0.05. This means that there
is a relationship between consumer’s confidence and social
media utilization. However, this relationship is not strong
enough to confirm the effect of Facebook and Twitter on the
Saudi consumer.
4.3 Discussion of the Results
The results from the frequencies tables indicate some results
and we will discuss these results and their significance to our
research. First, the facts we concluded about Saudi consumers’
usage of social website include the following: many Saudi
consumers use the internet mainly to use these social sites.
Facebook and Twitter are widely used and very popular in Saudi
Arabia. In addition, many Saudi Consumers realize the
popularity of Facebook and Twitter, which proves that
Facebook and Twitter are actually utilized and used in Saudi
Arabia. The majority of Saudi consumers prefer social media
rather than traditional media. These facts enhance the reliability
of the results of further questions since they prove the effective
utilization of Facebook and Twitter by brands and Saudi
consumers.
Second, although many Saudi consumers use Facebook and
Twitter, they do not necessarily want to follow pages of these

specific brands. Less than third of Saudi consumers use social
media to learn information about desired products. However,
most Saudi consumers agreed that social media is in fact an
effective tool for marketing. These results suggest that Saudi
consumers’ utilization of pages of brands on Facebook and
Twitter is not significant or large.
Third, Saudi users do not prefer to use Facebook for this
purpose because they do not fully trust the information they
receive from these social sites. . In addition, they do not
consider Facebook as an effective tool for connecting with
clothing brands. Additionally, Saudi Consumers do not prefer to
use Twitter to connect with clothing brands either, because they
do not fully trust the information that is found on this social
site.
Fourth, it appears that Saudi consumers do not trust social
websites enough to check them before purchase. Customers who
trust social media enough to make decisions based on the
information that is available in social media websites are a less
than half of Saudi Consumers. It
can be concluded that Saudi consumers do not trust Facebook
and Twitter yet to make purchasing decisions. Saudi consumers
do not believe that clothing brands are honest through their
social media messages. However, they realize the effective

utilization of Facebook and Twitter as marketing tools.
4.4 Recommendations
Recommendations for managers of companies to improve their
social media pages, which would improve the confidence of
their customers’, include the following: First, it is important
that the design and the layout of the Facebook and Twitter
pages of the company are attractive. Appearances play an
important role in attracting e-commerce customers. Appealing
web outline has constantly assumed a key part in fruitful online
deals and showcasing. That is on account of expanding the
general estimation of the organization's items and attempts to
make the site and business appear to be more dependable.
Perspectives of targeted consumers should be considered.
The second recommendation for managers is to improve
customers’ service in online pages on social sites. Potential
customers are in a situation that makes them unable to examine
the product in person, which leads to a host of problems:
clothing may not fit, software may be incompatible, or a
purchase may be damaged during shipping. Shoppers must
measure themselves and study a sizing chart instead of simply
entering a dressing room, or gather system requirements
information instead of just asking a sales representative.

Existing customers must diagnose problems by themselves,
navigate self-help websites, or wait for a support rep to take
them off hold. Any service an e-commerce retailer can provide
to ease the cognitive costs of shopping online increases the
customer is perceived value of the products.
The third recommendation for managers to improve their social
pages is to maintain honest, integrity, credibility, and
consistency in their interactions with customers. These elements
will assist managers in increasing consumers’ confidence in
their online business. It is also essential to provie updated and
timely information to online customers and answer their
enquiries.
Forth, it is recommended that managers should provide special
offers and promotions in the company’s Facebook and Twitter
pages in order to encourage customers to view these pages
continuously. These promotions should only be provided for
followers of the social site page. This action will motivate
consumers to follow the company’s social pages and to inform
their friends and relatives.
Fifth, managers should provide interactive games in the
company’s social pages on Facebook and Twitter in order to
attract customers to visit the page more often. They can allow
customers to collect points through these games and then points

can be exchanged for store credit, discounts, or special offers.
The company’s social pages on Facebook and Twitter should
have more features than the company’s website in order to
attract customers. For example, managers can provide limited
edition products that are provided for followers of its social
pages only.
The impacts of online networking are not something
entrepreneurs can bear to neglect. According to Roesler (2015),
customers who use online networking amid their shopping
procedure are four times more prone to spend more on buys than
the individuals who do not. In addition, customers are 29
percent more prone to make a buy that day when utilizing online
networking to shop before or amid a visit to the store. These
interesting facts make it necessary that further research should
be conducted about social media and consumers’ behaviors.
4.5. Conclusion: Findings, Limitations and Recommendations
for New Research Ways
4.5.1 Conclusion
The new innovative social media plays a key role in people’s
lives. Individuals and companies utilize these social websites
for different purposes. While the purposes for using social
media may differ, many companies are utilizing these websites

for advertisement and marketing purposes. In addition, many
Saudis use social media constantly for various reasons.
This research project seeks to investigate the Saudi consumer’s
confidence in Facebook and Twitter as marketing tools. We
investigated the social media and consumer behavior and the
utilization of social media websites. We addressed consumer
confidence in social media in the Middle East and in Saudi
Arabia specifically. We identified the three components of
consumer’s confidence, which are honesty, credibility, and
consistency
We developed three hypotheses based on the three components
of consumer’s confidence, which are honesty, credibility, and
consistency. The first hypothesis H1: There is a positive
relationship between the utilization of Facebook and Twitter to
buy clothes and honesty. The second hypothesis H2: There is a
positive relationship between the utilization of Facebook and
Twitter to buy clothes and credibility. The third hypothesis H3:
There is a positive relationship between the utilization of
Facebook and Twitter to buy the clothes and consistency.
We used a questionnaire that consists of 15 questions and three
dimensions. The questionnaire is a Likert-like rating scale of 1-
5, which we analyzed quantitatively. We used frequency tables
and ANOVA test to analyze our data. The results of the analysis
provided a basis for answering the research question, Are there
effects of Facebook and Twitter as tools of social media on the

Saudi Consumer’s confidence?. the findings of the research
were as follows:
First, H1: There is a positive relationship between the
utilization of Facebook and Twitter to buy clothes and honesty.
The first hypothesis is confirmed as there is evidence of the
existence of a relationship between the utilization of Facebook
and Twitter to buy clothes and consumers’ honesty. However,
this relationship is not strong enough to generalize it on the
entire population. Second, H2: There is a positive relationship
between the utilization of Facebook and Twitter to buy clothes
and credibility. There is a relationship between credibility and
the utilization of Facebook and Twitter, therefore, we confirm
the second hypothesis. However, as in the first
hypothesis, this relationship is not strong enough to generalize
it on the Saudi population.
Third, H3: There is a positive relationship between the
utilization of Facebook and Twitter to buy clothes and
consistency. There is a relationship between the consistency, as
a component of consumer’s confidence, and the utilization of
Facebook and Twitter. The third hypothesis is confirmed.
However, as in the first and the second hypotheses, this
relationship is not strong enough to generalize it on the Saudi

population.
4.5.2 Limitations
While this research has provided us with interesting results,
there are some limitations that served as obstacles in the way of
generating better results. First, the time limitation of the
research has forced us to use only quantitative methods of data
collection and limit the number of methods of data analysis.
Qualitative methods for collecting data provide understanding
and description of people’s personal experiences of phenomena
and can describe in rich detail phenomena as they are situated
and embedded in local contexts. In addition, additional methods
of data analysis could have added more reliability and validity
to the findings.
Second, the number of researches as references in the same area
was limited. A larger number of references in the area could
have served as a guide to more solid literature review. In
addition, previous researches did not include Saudi consumers
in the sample and population.
Third, the questionnaire was limited and did not specify the
respondents’ basic information, such as gender, age, and level
of education. This information would have been useful in
identifying which group of respondents has more confidence in

social media websites. Therefore, the solution to the problem of
the lack of confidence would be more clear.
4.5.3 Recommendations for New Research Ways.
The findings of our study indicate the need for additional
research in the area of social media marketing and their effects
on consumers. We will provide recommendations for
researchers and managers to solve the problem of weak
confidence of Saudi consumers in Facebook and Twitter pages.
The first recommendation for researchers for further studies
about the effects of social media on the Saudi consumer’s
behavior should address more aspects of the consumer behavior.
In addition to consumers’ confidence, other areas can be
studied, such as satisfaction, commitment, attachment, and
pleasure. These areas should be explored in order to fully
understand the effects of the utilization of social media as
marketing tools on the consumer’s behavioral aspects.
The second recommendation for researchers is the study of
advertisements on Facebook and Twitter. Users of Facebook and
Twitters are constantly faced with advertisements. Marketers
believe that these advertisements will encourage consumers to
have interest in viewing the company’s page and, hence,
purchase their products. Further studies should investigate the
effects of the Facebook and Twitter advertisements on the Saudi
consumer.

Third, it is recommended that researchers should collect
quantitative and qualitative data in future studies. Using
multiple data collection methods will allow them to gain
accurate and reliable data and increase their research validity.
In addition, it is recommended that researchers should use
multiple statistical analysis methods for analyzing the collected
data.
Fourth, It is recommended that future researchers should collect
the respondents’ basic information, such as gender, age, and
level of education. This information will be useful in
identifying which group of respondents has more confidence in
social media websites. Therefore, researchers will be able to
deduce accurate conclusions.
Fifth, investigating the extent to which Saudi consumers are
affected by social media can open doors to study the negative
effects that social media has on consumers. Future research
about social media marketing should include many other areas
such as brand awareness, website traffic, and fan engagement.
Fifth, in this study, the findings indicated that there is not a
significant positive influence on the Saudi consumer’s
confidence by Facebook and Twitter social sites. The reasons
for this result can be addressed in future research. What is the
reason for the lack of positive relationships between consumers’

confidence and Facebook and Twitter? It has been reported in
the results of this research that social websites including
Facebook and Twitter are widely used and known in Saudi
Arabia. The reasons for the reluctance of consumers’ to have
confidence in Saudi Arabia should be investigated and
addressed. These reasons can include the lack of confidence in
online shopping in general, the lack of confidence in specific
brands, or the inability of the brands to deliver attractive image
of the products through their pages in Facebook and Twitter.
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Appendix A
This questionnaire aims to study the effects of Facebook and
Twitter as social media tools on the Saudi consumer's
confidence; this purpose is achieved by using Zara and H&M
brands.
1. Is your main purpose of using the Internet is to use social
media sites?
Strongly disagreeDisagreeNeutralAgreeStrongly Agree
2. Two of the most popular social media websites used in KSA
are Facebook and Twitter. Strongly
disagreeDisagreeNeutralAgreeStrongly Agree
3. I prefer social media site such as Facebook or Twitter versus

traditional media such as, TV, radio or newspaper.
4. I am interested in becoming a "fan" of ZARA and H&M.
through Facebook and/or Twitter Strongly
5. I use social media to learn information on products/services
6. I think that social media is an effective way to reach me as a
customer when it comes to the fashion retail industry.
7. I generally receive retail promotions through social media
8. I prefer to connect with clothing brands on Facebook.

9. I prefer to connect with clothing brands on Twitter.
10. Before purchasing a clothing item, I check a social media
site for reviews and/or promotions. Strongly
11. I buy products based on the information I receive through a
social media
12. I trust Facebook and/or Twitter to provide me with useful
and correct information about the product and brands.
13. I feel that the information diffused by Facebook and/or
Twitter is credible.
14. I think that Zara and H&M are honest through their

messages addressed to consumer.
15. Zara and H&M address favorably of its clients.
Appendix B
GET DATA /TYPE=XLSX
/FILE='C:UsersuserDesktopZOH.xlsx'
/SHEET=name 'Sheet1'
/CELLRANGE=full
/READNAMES=on
/ASSUMEDSTRWIDTH=32767.
EXECUTE.
DATASET NAME DataSet1 WINDOW=FRONT.
SAVE OUTFILE='C:UsersuserDesktopZOH.sav'
/COMPRESSED.
ONEWAY Trust CredibleInfo Honest BY Fb
/MISSING ANALYSIS.
Oneway

Notes
Output Created
12-APR-2016 21:55:55
Comments
Data
C:UsersuserDesktopZOH.sav
Active Dataset
DataSet1
Input
Filter
Weight
<none>
<none>
Split File
<none>
N of Rows in Working Data File

130
Definition of Missing
User-defined missing values are
treated as missing.
Missing Value Handling
Cases Used
Statistics for each analysis are based on cases with no missing
data for any variable in the
analysis.
ONEWAY Trust CredibleInfo
Syntax
Honest BY Fb
/MISSING ANALYSIS.

Processor Time
00:00:00.02
Resources
Elapsed Time
00:00:00.00
[DataSet1] C:UsersuserDesktopZOH.sav
Oneway
Notes
Output Created
12-APR-2016 21:57:54

Comments
Data
C:UsersuserDesktopZOH.sav
Active Dataset
DataSet1
Input
Filter
Weight
<none>
<none>
Split File
<none>
N of Rows in Working Data File
130
Definition of Missing
User-defined missing values are

treated as missing.
Missing Value Handling
Cases Used
Statistics for each analysis are based on cases with no missing
data for any variable in the
analysis.
ONEWAY Trust CredibleInfo
Syntax
Honest BY Twt
/MISSING ANALYSIS.
Processor Time
00:00:00.00
Resources

Elapsed Time
00:00:00.01
[DataSet1] C:UsersuserDesktopZOH.sav
ANOVA
Sum ofSquares
df
Mean SquareF
Sig.
Between Groups
31.244
4
7.8118.350
.000
TrustWithin Groups
115.061

123
.935
Total
146.305
127
Between Groups
28.508
4
7.1278.969
.000
CredibleInfoWithin Groups
97.735
123
.795
Total
126.242

127
Between Groups
9.625
4
2.4062.849
.027
HonestWithin Groups
103.052
122
.845
Total
112.677
126

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