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Chapter 3 Research Methodology
Contents
3.1 Introduction
3.2 Population framework
3.3 Sampling framework
3.4 Research instrument
3.5 Measurement and scaling technique
3.6 StatisticaI tools and techniques
CHAPTER 3
Research Methodology
3.1 Introduction
This chapter deals with the explanations of the methods and techniques designed
and adhered for addressing the objectives of the present study. The approach to the
problem/issue was of inferential in nature involving generation of data from a sample of
population which are subjected to infer characteristics of and/or relationships among
various segments of the population. Hence, the research methods and techniques adopted
in order to attain the objectives of the present research work represent the qualities of an
inferential study.
Section 3.2 deals with details of the population framework which delineates the e-
banking customers of such private and the public sector banks operating in Cachar
District that were selected for the purpose of the study.
Next to this is the sampling framework in section 3.3 depicting the method of
sampling and the size of the sample that was taken into consideration for the survey.
The explanations of the research instrument and the measurement & scaling
techniques used in the present study are included in section 3.4 and section 3.5
respectively.
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Finally, section 3.6 deals with statistical tools and techniques applied for the
purpose of analyses and interpretations of the data gathered from the survey of the
present study.
3.2 Population Framework
in order to address the objectives of the present study primary data were collected
from the e-banking customers of such Private and Public sector banks operating in
Cachar District that were selected for the purpose of the study. As far as the population
(N) of the present study is concerned it comprises of the e-banking customers of both the
private and the public sector banks that were finally selected for the purpose of the study.
The details of the banks and the numbers of its branches that were considered for the
purpose of the study alongwith their locations are shown in Table 3.1.
T 3.1: Details of the selected banks and locations.
SI. No.
1
2 3
4
5
6
Name of the Bank
Axis Bank
The Federal Bank Ltd. HDFC Bank Ltd.
Indusind Bank
ICICI Bank
Yes Bank
No. of Branches selected 1
1 1
1
1
1
Location(s) of the Branch(es) selected
Chowchakra Complex, Shyama Prasad Road, Shi I long Patty, Silchar.
Shillong Patty, Silchar. Club Road, Hotel Geetanjali Complex, Silchar.
1 St Floor, Cachar Market, Rangirkhari, N. S. Avenue, Silchar-788005, Assam.
Giri Bhawan, N. S. Avenue, Near Life Line Hospital, Silchar-780005, Assam.
Shyama Prasad Road, Shillong
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USIM UMVERSiTT UBURT
ACCCSSiijr-
7
8
9
10
11
12
State Bank of India
United Bank of India
UCO Bank
Central Bank o f India
Punjab National Bank
Allahabad Bank
6
4
4
3
3
3
Patty, Silchar. New Silchar Branch, NIT Silchar Branch, Silchar Branch, Silchar Bazar Branch, Sonai Road Branch, Tarapur Branch.
Ghunghur Branch, Meherpur Branch, Silchar Branch,
Tarapur Branch. Silchar Branch, G. C. College (Silchar) Branch, Assam University Branch, Silchar Polytechnic Branch.
Silchar Branch, Jarailtola Branch, Hospital Road Branch.
Hospital Road Branch , Hilara Branch and Chibita Bichia Branch
Hospital Road Branch, Jalalpur Branch and Dudhpatil Branch
3.3 Sampling Framework
3.3.1 Method of Sampling
In order to collect the primary data from the e-banking customers of the public
sector commercial banks the sampling has been carried out in two stages- firstly to select
the banks and then its branches.
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The selection of the Pubhc Sector Commercial banks was made on the basis of its
reach in terms of its branches in the district i.e., Cachar. The bani<s thus identified and
selected include the banks having a minimum of three branches in Cachar district viz.,
State Bank of India, United Bank of India, Central Bank of India, UCO Bank, Allahabad
Bank and Punjab National Bank.
in the second stage the sampling of the branches, from each of the public sector
banks which were selected for the study, was carried out. Such branches of Public Sector
Banks operating in Cachar district were selected for the purpose of study which had more
customers having adopted e-banking. A preliminary enquiry over the matter of number of
users of e-banking revealed that such customers are more in number with the branches
located in Silchar and around than the places like sub-division towns-Lakhipur for
example.
Since almost all the Private Sector Banks operating in Cachar district, which were
six in number at the time of the concerned decision making, had its branches in Silchar
town only, all these were selected for the study. Interestingly all these banks had only one
branch each and therefore, option of selecting the branches did not arise. These six banks
are- Axis Bank, ICICI Bank, Federal Bank, HDFC Bank Ltd., Indusind Bank and Yes
Bank. The e-banking customers of the selected branches of both private and public sector
banks finally constitute the population (N) of the study.
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3.3.2 Size of the sample
The size of the e-banking customers (n) was determined with the help of sample
size calculator which is available online at http://www.macorr.com/sample-size-
calculator.htm. At 95% confidence level and confidence interval of 6 the size of the
sample obtained was 267.
After completing the above mentioned two stage sampling task, the next step that
was carried out in this regard was deciding the size of the respondents from both the
private and public sector banks selected for the purpose of the study. This was made in
proportion to the number of branches under each of the selected private and public sector
banks which is shown in Table 3.2.
T 3.2: Size of observations under each of the selected Banks.
Name of the Bank
State Bank of India
United Bank of India
UCO
Central Bank of India
Punjab National Bank
Allahabad Bank
Axis Bank Induslnd Bank HDFC Bank Ltd. ICICl Bank Federal Bank Yes Bank
Total
Number of Branches
6
4
4
3
3
3
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Size of observations
55
37
37
28
28
28
9 9 9 9 9 9
267
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3.4 Research Instrument
In order to achieve the objectives of the study a structured questionnaire was
designed. Assuming that if the questionnaire is prepared only in English language good
many respondents may not be able to understand the requirement and the spirit of some
of the questions fully, beneath every question/write up there was made available a Bangia
translation. The number of questionnaires administered to e-banking customers was 267
as per the sampling design mentioned above. The questionnaire entailed in it three
different types of enquiries related to customers of e-banking viz., socio-demographic,
related to the adoption of e-banking services by the customers and the satisfaction of the
e-banking customers. Almost all the questions in the questionnaire were close ended
ones. However, in case of non socio-demographic questions the last option in many cases
offered not only the response but also the count/matter. Not to say that to only this extent
the questionnaire was open ended. This was done to obtain a more comprehensive picture
of the respondents' feelings and attitudes.
The first part of the questionnaire enquired the socio-demographic profile of the
respondents. It deals with the information regarding the respondents' Age, Gender,
Education and Occupation. The details of the profile of the respondents are shown in the
Table 3.3.
The second part of the questionnaire included in it the statements against each of
the determinants relating to the adoption of e-banking services. Thirteen such
determinants which were found suitable for the purpose of conducting an enquiry on e-
banking services on the basis of the literature review and later confirmed by the pilot
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survey were the main point of enquiry. These thirteen determinants that were selected are
as follows:
Improved accessibility, Quicker service, Reduced cost. Avoidance of physical and mental agony,
Improved social status. Avoidance of embarrassment, Easy to use. Improved Compatibility,
Security, Positivity of attitude, Privacy, Trust and Facilitates online trading.
T 3.3: Socio-demographic profile of the respondents.
Age: 1. 15-30 2. 30-45 3. 45-60
Gender: 1. Male 2. Female
Educational Qualification: 1. HS 2. Graduate 3. Post Graduate
Occupation: 1. Service 2. Business 3. Others
Frequency (n=267)
105 79 83
149 118
77 112 78
87 103 77
Percent
39.30% 29.60% 31.10%
55.80% 44.20%
28.80% 41.90% 29.20%
32.60% 38.60%) 28.80%
Source: Field Survey.
The third part of the questionnaire enquires about the angles of customers'
expectations in terms of their requirements and actual service provided to them. For this
purpose eighteen counts of service quality were taken into consideration. These eighteen
dimensions of e-banking services that were taken into consideration are:
1. Availability of on -line customer care for response to e-banking queries.
2. Availability of prompt response to customers' queries by email or other means.
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3. Availability of employees off-line (in the branch) for providing assistance to
customers for e-banking related services.
4. Efficiency of e-banking related Complaint Redressal System of the bank.
5. Promptness in providing information to customers about services performed or
otherwise along with the details/reasons of the same.
6. Timely availability of financial information through i-banking.
7. Timely transfer of money.
8. Timely availability of the updated policies and notices of the bank on the bank's
web site.
9. Timely availability of financial information through m-banking.
10. Confidentiality of the e-transactions.
11. Availability of uninterrupted services by the ATMs for the duration claimed.
12. Requisite functionality of the ATMs.
13. Uninterrupted functionality of the bank server.
14. Accuracy of Information through i-banking.
15. Accuracy of delivery of services by the bank through its ATMs.
16. Accuracy of information through m-banking.
17. Availability of sufficient number of ATM booths.
18. Requisite delineation of the details of the policy and the notices on the bank's
website.
3.5 Measurement and Scaling Techniques
3.5.1 Measurement and sealing in relation to adoption of e-banking services by the
customers
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The response in relation to each of the selected components of adoption of e-
banking services was measured by using a Five Point Likert Type Scale ranging from
Strongly Agree to Strongly Disagree. Each point of the scale carries a score. Response
indicating the least favourable degree of adoption of e-banking services is given the least
score i.e.l and the response indicating the most favourable one is given the highest score
of 5. This way the instrument is capable of yielding a total score for each respondent,
which would in course be capable of measuring the respondent's attitude towards the
adoption of e-banking services. Since there were thirteen numbers of statements relating
to the adoption of e-banking services, the scores of any respondent would fall between 13
and 65 as shown below:
13 X 5 = 65 (Most favourable attitude towards adoption)
13 X 3 = 39 (Neutral attitude)
13x1 = 13 (Most unfavourable attitude towards adoption)
If the score of the response of any respondent happens to be above 39, it would
mean favourable opinion towards adoption of e-banking services, whereas a score below
39 would mean unfavourable opinion and a score of exactly 39 would reflect a neutral
attitude towards adoption of e-banking services.
3.5.2 Measurement and scaling in relation to the satisfaction of the e-banking
customers
The satisfaction of the e-banking customers were also measured by using a Five
Point Likert-Type Scale ranging from 'Fully Satisfied' to 'Fully dissatisfied' based on
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eighteen selected counts. The scores of any respondent in this case would fall between 18
and 90 as shown below:
18 X 5 = 90 (Most favourable response)
18 X 3 = 54 (Netural response)
18 X 1 = 18 (Most unfavourable response)
If the score of the response of any respondent happens to be above 54, it would
mean favourable opinion towards adoption of e-banking services, a score below 54 would
mean unfavourable opinion and a score of exactly 54 would reflect a neutral attitude
towards adoption of e-banking services.
3.6 Statistical Tools and Techniques
In order to address the second and the third objectives of the study, Factor
Analysis by using Principal Component Method of Extraction was performed. The
purpose was to identify the latent factors contributing towards the adoption of e-banking
services by the customers and also the latent service quality dimensions that influence the
satisfaction of the e-banking customers in Cachar District of Assam.
The factors that were extracted in relation to both the above mentioned cases were
further analysed with the help of the overall weighted average scores of the components.
The calculations for both the cases of adoption and satisfaction are shown in the
following sub-sections:
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3.6.1 Calculation of the adoption scores of the factors.
The adoption scores of the factors (extracted from the Factor Analysis) were
obtained from the mean of the overall of weighted average scores of the components
under each of the factors. The Weights (W) of the components are the respondents'
degrees of agreements and disagreements over the components under each factor. As the
respondents' degrees of agreements and disagreements were recorded on a Five Point
Scale, the values of the weights attached to the five points of agreement and disagreement
ranged from 1 to 5 which are shown in Table 3.4.
T 3.4: Weights for the calculation of the weighted scores of the components of adoption of e-banking services.
Choice of Agreement and Disagreement
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Weightings
5
4
3
2
1
The calculation of the adoption scores for each of the four latent factors that were
extracted from the Factor Analysis are shown in Table 3.5, Table 3.6, Table 3.7 and
Table 3.8 as follows:
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T 3.5: Calculation of the adoption score of the factor- Relative Advantage.
Components
Improved Accessibility Quicker service Avoidance of physical and mental agony Reduced cost Online trading
Strongly Agree
6 8 x 5
7 8 x 5
6 6 x 5
9 2 x 5 5 5 x 5
Agree
148x4
152 x 4
140x4
131 x 4 119x4
Neutral
45 X 3
3 0 x 3
4 8 x 3
3 6 x 3 53 X 3
Disagree
if ^2)
6 x 2
7 x 2
1 3 x 2
8 x 2 4 0 x 2
Strongly Disagree
Mean
Adoption Scores
4.04'
4.13''
3.97'
4.14' 3.71'
4''
Source: Field Survey.
Note: a. The weighted scores of the components are the weighted averages obtained from-(fx 5) + (fx4) + (fx 3) + (fx2) + (fx l)/267 b. The adoption score of the factor Relative Advantage which was obtained from the mean of the overall weighted scores of its components.
T 3.6: Calculation of the adoption score of the factor- User Involvement.
Components
Compatibility Positivity of attitude Easy to use
Strongly Agree if ^5)
68 X 5
65 X 5
67 X 5
Agree
140x4 132x4
122 x 4
Neutral
( / • x i ;
47 X 3
53 X 3
38 X 3
Mean
Disagree
if ^2)
12x 2 17 x 2
3 2 x 2
Strongly Disagree if^l)
8 X 1
Adoption Scores
3.99' 3.92'
3.78' 3.99"
Source: Field Survey.
Note: a. The weighted scores of the components are the weighted averages obtained from-(fx 5) + (fx4) + (fx 3) + (fx2) + (fx l)/267 b. The adoption score of the factor User Involvement obtained from the mean of the overall weighted scores of its components.
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T 3.7: Calculation of the adoption score of the factor- Reliability.
Components
Privacy Security Trust
Strongly Agree
50x5 169 X 5
44x5
Agree
167x4 41 x4 143x4
Neutral
( / • x3 ;
5 x 3 37x3 46x3
Disagree
if ^2)
34x2 17x2 31 x2
Strongly Disagree
11x1 3x 1 3x 1
Mean
Adoption Scores
3.79' 4.33' 3.73' 3.95"
Source: Field Survey.
Note: a. The weighted scores of the components are the weighted averages obtained from-(f X 5) + (f X 4) + (f X 3) + (f X 2) + (f X 1)/ 267
b. The adoption score of the factor Reliability obtained from the mean of the overal weighted scores of its components.
T 3.8: Calculation of the adoption score of the factor- Social Image.
Components
Improved social status Avoidance of embarrassment
Strongly Agree if ^5)
50x5
25 X 5
Agree
{f^4)
153 X 4
160x4
Neutral
39x3
47 X 3
Mean
Disagree
if ^2)
25 X 2
35 X 2
Strongly Disagree if^i)
Adoption Scores
3.85'
3.66'
3.76"
Source: Field Survey.
Note: a. The weighted scores of the components are the weighted averages obtained from-(fx 5) + (fx4) + (fx3) + (fx2) + (fx i)/267
b. The adoption score of the factor Social image obtained from the mean of the overall weighted scores of its components.
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3.6.2 Calculation of the satisfaction scores of the latent factors.
Like the adoption scores of the factors, the satisfaction scores of the dimensions
(extracted from the Factor Analysis) were obtained from the mean of the overall
weighted scores of the components under each of the factors. However, the calculation of
the weighted scores of the components differs from the adoption aspect of the study.
The weights in this case represent the relative importance of the e-banking
customers recorded on a five point scale (as shown in Table 3.9) over the eighteen
selected counts.
T 3.9: Weights for calculation of weighted scores of the components selected for the satisfaction aspect of the study. Choice of importance
Very important
Quite important
Neither important nor unimportant
Quite unimportant
Very unimportant
Weightings
5 4 3 2 1
The formula for computing the weighted scores of the components under each of
the extracted latent factors in relation to the satisfaction towards e-banking services is:
^^ ^ YJ^^ _ WiX, +W,X2 + . . . + W,̂ X„
V W W, + W2 + ... + W^
Where, Xw represents weighted average.
X represents the values of satisfaction i.e. Xi, X2, X3 Xp
W represents the weights attached (relative importance) i.e. W|, W2, W3 Wp
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3.6.3 Statistical test for addressing the hypotheses of the study
In order to reach decisions regarding the choice of the statistical tests to be
applied for testing the hypotheses set in case of both the adoption and satisfaction aspects
of the study, the One-Sample Kolmogorov-Smirnov test was performed to test the null
hypothesis that the sample comes from a normal distribution. The results of the One-
Sample Kolmogorov-Smirnov test for both -the adoption and the satisfaction have been
shown in Table 3.10.
T 3.10: Result of the One-Sample Kolmogorov- Smirnov Test.
N Normal Parameters^ Mean Std. Deviation Kolmogorov-Smirnov Z Asymp. Sig. (2- tailed)
Adoption
267
51.04 5.564 1.818 .003
Satisfaction
267
69.06 10.458 3.227 .000
a. Test distribution is Normal.
In the above Table it is seen that the probability of the Z statistic is less than 0.05
in both the aspects of adoption and satisfaction and, therefore, the normal distribution in
both the aspects of the study is not a good fit.
Since the responses of the respondents in both adoption and satisfaction aspects of
the study do not follow normal distribution, the Non- Parametric tests viz. Kruskal-Wallis
H test (for K independent samples) and Mann-Whitney U test (for two independent
samples) were taken into consideration to test the hypotheses of the present study. The
testing of the hypotheses was made with the help of the SPSS 16 version.
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