chapter – iv awareness and customer satisfaction on...

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CHAPTER – IV

AWARENESS AND CUSTOMER SATISFACTION ON E-BANKING

SERVICES – AN ANALYSIS

In a constantly changing world of today, where past is replaced by dynamic

present and the old ways of doing things is no longer valid. Change is permanent

and a real. Those who are not able to keep pace with the changes are destined to

loose the race. Science and technology is changing the way financial institutions

perform their transactions. Science and technology have brought life of the people

so easier, comfortable and luxurious. These new technology brings with it not only

the potential for success, but also a never-ending series of questions regarding its

design, its value to its users, ultimate use and acceptability.

E-banking is the waves of the future. It provides enormous benefits to

consumers in terms of ease and cost of transactions, either through internet,

telephone or other electronic delivery channels. For many consumers, electronic

banking means 24-hours access to cash through an e-banking service media such

as Automated Teller Machine (ATM), internet banking, mobile banking and debit

and credit card. But electronic banking now involves many different types of

transactions. E-banking is a form of banking where funds are transferred through

an exchange of electronic signals between financial institution, rather than

exchange of cash, cheques or other negotiable instruments.

With the expansion of global Information and Communication Technology

(ICT) infrastructure and the internet, e-banking is set to play a pivotal role in the

Indian economy, skilled manpower proper software, infrastructure, cyber law are

important for the implementation of e-banking in India.

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Providing a good service quality is a major issue for banking industry.

Customer satisfaction determines the success or failure of a business. In order to be

competitive in the marketplace, banks need to satisfy their customer. Best service

quality provided would ensure a high market share and substantial return. It is

important for banks to provide e-banking service to uncover which attributes,

consumers utilized in their assessment of e-banking service quality. Therefore, the

banks need to understand the attributes that the customer use to judge service

quality.

In this context analyzing customer satisfaction on e-banking services and

drawing appropriate strategies is not only to attract new customers, but also to

retain existing ones. This chapter focuses on the overall customer satisfaction on

e-banking services by considering the variables such as Accessibility,

Convenience, Privacy, Security, Design, Content, Speed and Fees and Charges,

further the researcher has selected three e-banking service medium viz., ATM,

Internet Banking and Mobile banking to analyze the overall customers’ satisfaction

on e-banking practices.

Profile of the Respondents

The demographic backgrounds of the sample respondents in five

parameters are presented in the following tables to understand the customer

profiles i.e., gender, age, education, occupation and income.

Sex Wise Distribution of Respondents

The sex wise distribution of the sample respondents in the selected both

public and private sector bank is presented in table 4.1.

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TABLE 4.1

SEX WISE DISTRIBUTION OF RESPONDENTS

S.No Age

(Years)

No. of respondents

Public Sector Bank

% Private Sector Bank

% Total %

01 Male 128 62.14 142 80.68 270 70.68

02 Female 78 37.86 34 19.32 112 29.32

Total 206 100.00 176 100.00 382 100.00 Source: Primary data

Table 4.1 shows sex wise distribution of the respondents in the study units.

It is observed from the table that the work force in the selected public and private

sector bank consists of 71 per cent male and 29 per cent female employees. Table

4.1 also reveals that female employees constitutes significant portion in the work

force of the public sector banks when compared to private sector bank.

Age Wise Distribution of Respondents

The age wise distribution of the sample respondents is given in table 4.2.

TABLE 4.2

AGE WISE DISTRIBUTION OF RESPONDENTS

S.No Age

(Years)

No. of respondents

Public Sector Bank


% Total %

01 Below 25 34 16.50 21 11.93 55 14.40

02 25 – 35 41 19.90 108 61.36 149 39.01

03 35 – 45 52 25.24 28 15.91 80 20.94

04 Above 45 79 38.35 19 10.80 98 25.65


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Table 4.2 shows that out of 382 respondents as much as 39 per cent of the

respondents are in the age group 40 – 50 years, followed by one-fourth of the

respondents are above 60 years. About 21 per cent of the respondents are in the age

group of 50 – 60 years and 14 per cent of the respondents are less than 40 years. It

is inferred from the table that private sector bank has large number of young

customer as compared to public sector bank whereas public sector bank has large

number senior customer who are in the age group of above 50 years as compared

to private sector bank.

Educational Qualifications of the Respondents

The educational qualifications of the sample respondents in the selected

public and private sector bank are shown in table 4.3.

TABLE 4.3

EDUCATIONAL QUALIFICATIONS OF THE RESPONDENTS

S.No Educational

Qualifications

No. of respondents

Public Sector Bank


% Total %

01 Up to HSC 31 15.05 14 07.95 45 11.78

02 Graduate 97 47.08 83 47.16 180 47.12

03 Post Graduate 64 31.07 38 21.59 102 26.70

04 Professional 14 06.80 41 23.30 55 14.40


Table 4.3 indicates the educational qualifications of the respondents.

About 47 per cent of the respondents are under graduate, nearly 27 per cent of the

respondents are post graduate, 14 per cent of the respondents have professional

qualifications and about 12 per cent of the respondents were studied up to higher

secondary school. It is noteworthy to mention that the professionals prefer private

sector banks than that of public sector banks in the study area.

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Occupation of the Respondents

The occupation wise distribution of the sample respondents in the study

units is given in table 4.4.

TABLE 4.4

OCCUPATION OF THE RESPONDENTS

S.No Occupation

No. of respondents

Public Sector Bank


% Total %

01 Salaried 94 45.63 55 31.25 149 39.01

02 Professional 09 04.37 35 19.89 44 11.52

03 Business 52 25.24 72 40.91 124 32.46

04 Retired 32 15.53 08 04.55 40 10.47

05 Housewife 19 09.22 06 03.41 25 06.54

Total 206 100.00 176 100.00 382 100.00

Source: Primary data

It is observed from the table 4.4 that out of 382 sample respondents, as

much as 39 per cent of the respondents are salaried class followed by 32 per cent

of the respondents are business people. About 12 per cent of the respondents are

professionals and 10 per cent are retired person. It can be inferred from the table

salaried class, retired person and housewife prefer public sector bank whereas

professionals and business people prefer private sector bank for their banking

transactions.

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Income of the Respondents

The annual income of the respondents in the selected public and private

sector bank is shown in table 4.5.

TABLE 4.5

INCOME OF THE RESPONDENTS

S.No Income ( )

No. of respondents

Public Sector Bank


% Total %

01 Less than

( )1 lakh 56 27.18 14 07.95 70 18.32

02 ( ).1 – 2 lakhs 72 34.95 25 14.20 97 25.39

03 ( ) 2 –3 lakhs 36 17.48 34 19.32 70 18.32

04 ( ) 3-4 lakhs 23 11.17 45 25.57 68 17.80

05 Above () 4 lakhs

19 09.22 58 32.95 77 20.16

Total 20 6 100.00 176 100.00 382 100.00


Table 4.5 shows the annual income wise distribution of the respondents.

Out of 382 respondents, one-fourth of the respondents annual income is 1-2

lakhs, as much as 20 per cent of the respondents annual income is above 4 lakhs.

The respondents who earns annual income of less than 1 lakh, 2-3 lakhs and

and 3 - 4 lakhs constitute 18 per cent each out of the total.. It is inferred from

the table the lower income group i.e., annual income is less than two lakhs prefer

public sector banks whereas middle and higher income group, i.e., annual income

2-3 lakhs and above three lakhs prefer private sector banks.

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Utilization of E-Banking Services

The respondents’ usage of selected e-banking services in the selected

public and private sector banks is given in table 4.6.

TABLE 4.6

UTILIZATION OF E-BANKING SERVICES

Usage

Public Sector Bank Private Sector Bank

ATM Internet banking

Mobile banking


Mobile banking

Used 206

(100.00)

89

(43.20)

156

(75.73)

176

(100.00

106

(60.23)

145

(82.39)

Not used - 117

(56.80)

50

(24.27) -

70

(39.77)

31

(17.61)

Total 206

(100.00)

206

(100.00)

206

(100.00)

176

(100.00)

176

(100.00)

176

(100.00)

Source: Primary data Note: Figure in the bracket is percentage to total

Table 4.6 exhibits usage of selected e-banking services in the public and

private sector banks in the study area. All the respondents in the public and private

sector banks have used ATM services. Out 206 respondents in the public sector

bank, about 43 per cent of the respondents have used internet banking and 57 per

cent have not used the internet banking. Nearly three-fourth of the respondents

have used mobile banking and one-fourth of the respondents have not used mobile

banking services. In case of private sector bank 60 per cent and 82 per cent of the

respondents have used internet banking and mobile banking services. It is

understood from the table more number of customers are availed e-banking

services in private sector bank as compared to public sector bank. The number of

respondents who use e-bankiing services is also shown in figure 4.1.

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FIGURE 4.1

UTILIZATION OF E-BANKING SERVICES

206

89

156176

106

145

117

5070

31

206 206 206176 176 176

0

50

100

150

200

250

ATM Internet

Banking

Mobile

Banking

ATM Internet

Banking

Mobile

Banking

Public Sector Bank Private Sector Bank

Used Not used Total

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Period of Use

The present scenario usage of ATMs, Internet Banking and Mobile

Banking is measured in terms of the length of the period the respondents are using

a particular service. For this purpose, time is divided into five sub-heads i.e. less

than 6 months, 6 months to 1 year, 1 to 2 years, 2 to 3 years and more than 3 years.

The period of using e-banking services provided by the banks is described in table

4.7.

TABLE 4.7

DURATION OF USING E-BANKING SERVICES

Period Public Sector Bank Private Sector Bank


Mobile banking


Mobile banking

Less than 6 month

22 (10.68)

09 (10.11)

48 (30.77)

10 (05.68)

13 (12.26)

18 (12.41

6 months to 1 year

29 (14.08)

11 (12.36)

52 (33.33)

23 (13.07)

16 (15.09)

22 (15.17)

1 year to 2 years

38 (18.45)

18 (20.22)

16 (10.26)

34 (19.32)

21 (19.81)

29 (20.00)

2 years to 3 years

53 (25.73)

24 (26.97)

23 (14.74)

42 (23.86)

20 (18.87)

32 (22.07)

More than 3 years

64 (31.07)

27 (30.34)

17 (10.90)

67 (38.07)

36 (33.96)

44 (30.34)

Total 206

(100.00) 89

(100.00) 156

(100.00) 176

(100.00) 106

(100.00) 145

(100.00) Source: Primary data Note: Figure in the bracket is percentage to total

Table 4.7 envisages that ATM is the oldest service in use. Out of total

respondents, maximum 31 per cent and 38 per cent respondents in public and

private sector banks are using ATM for more than 3 years. Internet banking is at

second position with 30 per cent 34 per cent users in public and private sector

banks for using internet banking for more than 3 years. Mobile banking is at third

position with 30 per cent respondents are using this service for more than three

years in private sector banks. In case of public sector bank, maximum 33 per cent

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of the respondents are using the mobile banking for six months to one year. It can

be inferred from the table that the customers in private sector bank is very much

interested for using e-banking services as compared to public sector bank.

Customers Satisfaction

The customers’ satisfaction with e-banking services is measured in terms of

Accessibility, Convenience, Privacy, Security, Design, Content, Speed, Fees and

Service Charges.

Accessibility

Accessibility defines as the ability of users to access information and

services of e-banking are dependent on many factors. These include the content

format; the user's hardware, software and settings; internet connections; the

environmental conditions and the user's abilities and disabilities. The term

accessibility generally relates to the implementation of e-banking medium content

in such a way as to maximize the ability of users to access the information. The

customers’ satisfaction with accessibility of e-banking medium is analyzed and

presented in table 4.8.

TABLE 4.8

CUSTOMER SATISFACTION TOWARDS ACCESSIBILITY OF E-BANKING SERVICES

E-banking medium

Public Sector Bank

Private Sector Bank

Combined

Mean score

Mean score (%)

Mean score

Mean score (%)

Mean score

Mean score (%)

ATM 21.41 30.59 39.40 56.29 29.70 42.43 Internet banking

30.57 43.67 42.47 60.67 37.04 52.91

Mobile banking

24.83 35.47 36.07 51.53 30.25 43.21

Average 24.40 34.86 39.03 55.76 31.52 45.02 Source: Primary data

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Table 4.8 shows that the average mean score obtained by all the sample

respondents for customer satisfaction in e-banking services with regard to

accessibility was 45 per cent. It was nearly 53 per cent in respect of internet

banking, 43 per cent in respect of mobile banking and 42 per cent in respect of

ATM services.

The average mean score of 35 per cent and 56 per cent was secured by the

public and private sector bank respondents for selected e-banking services. The

private sector bank respondents have secured maximum score for internet banking

services followed by ATM services, mobile bank was in the third place. There is

no significant variation in the mean score obtained by the respondents of the public

sector bank. Among the selected e-banking services, the respondents in the public

sector bank have secured lowest score for ATM Services with regard to customer

satisfaction in e-banking services. It can be inferred from the table that the private

sector bank customers have easy accessibility to use e-banking services as

compared to private sector bank.

Convenience

E-banking provides higher degree of convenience that enables customers to

access e-banking services at all times and places. Apart from that, the ease of

access of e-banking services is perceived as a measure of relative advantage.

Certain factors are considered as paramount importance in ensuring the success of

e-banking, i.e. the ability of an innovation to meet users' needs using different

feature availability on e-banking services such as the provision of interactive loan

calculators, exchange rate converters, and mortgage calculators on the screen draw

the attention of users of e-banking services. The customers satisfaction with

e-banking in relation to convenience is analyzed in table 4.9.

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TABLE 4.9

CUSTOMER SATISFACTION TOWARDS CONVENIENCE OF E-BANKING SERVICES

E-banking medium

Public Sector Bank

Private Sector Bank

Combined

Mean score

Mean score (%)

Mean score

Mean score (%)

Mean score

Mean score (%)

ATM 09.55 27.30 16.55 47.29 12.77 36.50

Internet banking

14.90 42.57 21.18 60.51 18.31 52.32

Mobile banking

10.94 31.25 18.79 53.67 14.72 42.05


Table 4.9 present that mean score secured for satisfaction level with regard

to convenience, which is highest in case of internet banking and lowest for ATMs

services. The mean score obtained for mobile banking service was 42.05 per cent.

The average mean score secured for selected e-banking services was 41.92 per

cent. The public and private sector bank respondents have obtained highest mean

score for internet banking services as compared to ATMs and other mobile

banking services. The average mean score obtained by the respondents for

selected e-banking services in public and private sector bank was 31.68 per cent

and 52.73 per cent. The respondents of public sector bank have obtained low mean

score as compared respondents of private sector banks. Therefore it can be

inferred from the table private sector banks customers have more convenience to

use e-banking services when compared to public sector banks.

Privacy

Customers may have doubts about the trustworthiness of the e-bank's

privacy policies. Trust has striking influence on user's willingness to use

e-banking services in exchanges of money and personal sensitive information.

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Privacy is an important dimension that may affect users' intention to adopt

e-based transaction systems. Encryption technology is the most common feature at

all bank sites to secure information privacy, supplemented by a combination of

different unique identifiers, for instance, a password, mother's maiden name, a

memorable date, or a few minutes of inactivity automatically logs users off the

account. The customers’ satisfaction with regard to privacy is analyzed and

presented in table 4.10.

TABLE 4.10

CUSTOMER SATISFACTION TOWARDS PRIVACY OF E-BANKING SERVICES

E-banking medium

Public Sector Bank

Private Sector Bank

Combined

Mean score

Mean score (%)

Mean score

Mean score (%)

Mean score

Mean score (%)

ATM 16.37 40.93 24.24 60.60 20.00 50.00

Internet banking

25.30 63.25 29.31 73.28 27.48 68.71

Mobile banking

25.31 63.27 26.10 65.25 25.69 64.22


Table 4.10 shows the mean score secured by the respondents for privacy.

The respondents have obtained the mean score of 59.03 percent for experiencing

privacy while using e-banking services. The maximum score of 68.71 per cent

obtained for internet banking followed by mobile banking services. The mean

score secured by the respondents for ATMs services was 50 per cent. The average

mean score of 53.07 per cent and 65.32 per cent was obtained by respondents of

public and private sector bank. The low mean score of 40.93 per cent obtained by

the public respondents for ATMs services.

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More than 50 per cent mean score was secured by the respondents of public

sector bank for Internet banking services and mobile banking services. In case of

private sector, all the respondents have got more than 60 per cent mean score for

experiencing privacy. Therefore, it is understood from the table that all the

respondents are experienced privacy while using e-banking services except ATMs

services provided by public sector banks.

Security

Assurance about security relates to the extent to which the e-bank service

provider guarantees the safety of customers` financial and personal information.

Security can be assured by providing a privacy statement and information about

the security of the shopping mechanisms and by displaying the logos of trusted

third parties. For example, displaying trusted third party logo guarantees a certain

level of security protection and has been shown to significantly influence how

consumers regard the trustworthiness of e-vendors. The customers satisfaction in

relation to privacy is analyzed in table 4.11.

TABLE 4.11

CUSTOMER SATISFACTION TOWARDS SECURITY OF E-BANKING SERVICES

E-banking medium

Public Sector Bank

Private Sector Bank

Combined

Mean score

Mean score (%)

Mean score

Mean score (%)

Mean score

Mean score (%)

ATM 09.08 30.28 11.48 38.27 10.19 33.96

Internet banking

16.28 54.27 17.50 58.34 16.87 56.23

Mobile banking

13.16 43.87 18.47 61.57 16.05 53.49


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Table 4.11 indicates the mean score obtained by the respondents for

security while using e-banking services. The average mean score of 45.93 per cent

was secured by the both public and private sector bank respondents. The highest

score of 56.23 per cent and 53.49 per cent secured for internet banking and mobile

banking services, the lowest mean score of 33.96 per cent was obtained for ATMs

services. The respondent of both public and private sector bank was secured

lowest mean score of 30.28 per cent and 38.27 percent respectively for ATMs

services. Hence, it is inferred from the table the public and private sector bank

customers are feel security while using e-banking services except ATMs services.

Design

The goal of aesthetic design is to make a service medium site visually

attractive and enjoyable. The content preparation in a broad sense has four

aspects: knowledge elicitation, information organization and structure, information

retrieval, and information presentation. During design, and prior to

implementation, it is strongly recommended that users of different ages, and with a

range of capabilities and limitations be engaged to trial the new service and

provide feedback. The customer satisfaction of e-banking services with regard to

design is analyzed in table 4.12.

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TABLE 4.12

CUSTOMER SATISFACTION TOWARDS DESIGN OF E-BANKING SERVICES

E-banking medium

Public Sector Bank Private Sector Bank Combined

Mean score

Mean score (%)

Mean score

Mean score (%)

Mean score

Mean score (%)

ATM 08.60 28.67 15.74 52.46 11.89 39.63

Internet banking

07.97 26.55 11.17 37.23 09.71 32.36

Mobile banking

10.11 33.70 08.81 29.37 09.49 31.62


As per table 4.12, the average mean score obtained by the respondents was

35.27 per cent for design of the e-banking medium. It is noteworthy to mention

that all the respondents irrespective of bank has secured mean score less than 40

per cent for ATM, Internet banking and mobile banking services. The highest

score of 52.46 per cent was obtained by the ATM users in private sector bank.

Therefore, it can be inferred by the table that the design of the e-banking medium

is not user-friendly. The banks should redesign e-banking medium in consultation

with its customers.

Content

The content of e-banking service medium is one of the factors influencing

e- banking acceptance. On the other hand, quality designs, graphics or colors and

the propensity to portray good image of the bank would enhance efficient use of

navigation. The features such as speed, content and design, navigation,

interactivity and security all influence user satisfaction. Therefore, the customers

satisfaction with e-banking services with regard to content is analyzed in table

4.13.

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TABLE 4.13

CUSTOMER SATISFACTION TOWARDS CONTENT OF E-BANKING SERVICES

E-banking medium


Mean score

Mean score (%)

Mean score

Mean score (%)

Mean score

Mean score (%)

ATM 14.14 40.40 16.22 46.34 15.09 43.13

Internet banking

08.71 24.88 11.41 32.60 10.17 29.06

Mobile banking

08.39 23.97 11.05 31.57 09.67 27.63


Table 4.13 presents the mean score secured by the respondents for

e-banking services with regard to its content. The average mean score of 34.69 per

cent was obtained the total respondents. The lowest mean score of 29.06 per cent

was secured for mobile banking followed by internet banking services. The ATM

service users have got the mean score of 43 per cent. Table also reveals that the

respondents of both public and private sector bank have obtained the mean score of

less than 50 per cent. The public sector bank respondents have secured low mean

score as compared to respondents of private sector bank for ATMs, Internet

banking and Mobile banking services. Therefore, based on the opinion of the

respondents, it is inferred that there is poor content of e-banking services medium

is not up to the expectation of the consumer. The banks should redesign content of

the e-banking services to make the e-banking services more user-friendly.

Speed

In general, there is a significant correlation between speed of e-banking

service medium and user satisfaction. Speed of download depends on the nature of

the site downloaded content, the computing hardware and method of connection

used to download information.

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Customers’ satisfaction with e-banking services in relation to speed of

e-bank service medium is analyzed in table 4.14.

TABLE 4.14

CUSTOMER SATISFACTION TOWARDS SPEED OF E-BANKING SERVICES

E-banking medium


Mean score

Mean score (%)

Mean score

Mean score (%)

Mean score

Mean score (%)

ATM 07.55 21.57 12.20 34.86 09.69 27.70

Internet banking

08.71 24.86 10.59 30.27 09.73 27.81

Mobile banking

10.02 28.63 11.72 33.48 10.84 30.97

Average 08.63 24.66 11.64 33.26 10.09 28.84


Table 4.14 depicts the mean score secured by the respondents for

experiencing speed while using e-banking services. Irrespective of the bank, all

the respondents have got the mean score of below 30 per cent and there is no much

variation in the mean score obtained by the respondents for ATMs, internet

banking and mobile banking services. Therefore, it is understood from table that

the respondents experiences low speed to complete their e-banking transactions.

Fees and Charges

Service quality attributes in e-banking industry are important since human-

internet interaction is the main service delivery and communication channel is

needed for offering high quality services and to satisfy consumers' needs, at lower

costs, are potential competitive advantage of e-banking. Cost savings have helped

e-based banks offer lower or no service fees, and offer higher interest rates on

interest-bearing accounts than traditional banks. Fee charged by the banks is one

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of the variables taken for checking customer satisfaction level. If customer feels

that the fee charged by the bank is reasonable then he is satisfied and vice-versa.

Hence, the customer satisfaction with fees and charges for e-banking

services is given in table 4.15.

TABLE 4.15

CUSTOMER SATISFACTION TOWARDS FEES AND CHARGES OF E-BANKING SERVICES

E-banking medium


Mean score

Mean score (%)

Mean score

Mean score (%)

Mean score

Mean score (%)

ATM 21.72 48.27 06.88 15.28 14.88 33.07

Internet banking

22.62 50.27 05.71 12.69 13.43 29.84

Mobile banking

27.44 60.98 10.19 22.64 19.13 42.51

Average 23.88 53.06 07.71 17.13 16.01 35.59


Table 4.15 depicts the mean score obtained by the respondents for fees and

service charges charged by the e-banking service providers. The respondents has

secured the average mean score of 35.59 percent for fees charged by the banks for

using ATM, Internet banking and Mobile banking services. The internet banking

service users has secured low mean score of 29.84 per cent followed by ATMs

users; they secured the mean score of 33.07 per cent. The mobile banking service

users have secured 42.51 per cent. The public sector bank respondents have

secured the mean score of less than 50 per cent whereas private sector bank

respondents have obtained the mean score of less than 20 per cent. It is understood

from the table, the respondents are of the opinion that the e-banking service

providers have charged heavy charges for e-banking services. It is also inferred

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from the table customers of private sector banks has to pay high cost for

transacting e-banking services as compared public sector banks.

Overall Mean Score

After considering all the elements of customer satisfaction they are

combined together to find out the overall customer satisfaction level of e-banking

services. The overall customer satisfaction level is the combination of eight

parameters i.e. Accessibility, Convenience, Privacy, Security, Design, Content,

Speed, Fees and Service charges. The overall customer satisfaction with e-banking

services is analyzed in table 4.16.

TABLE 4.16

OVERALL MEAN SCORE TOWARDS E-BANKING SERVICES

E-banking services

Public Sector Bank

Private Sector Bank Combined

Mean score

Mean score (%)

Mean score Mean score (%)

Mean score

Mean score (%)

ATM 108.43 33.88 142.70 44.59 124.22 38.82

Internet banking

131.97 41.24 150.31 46.97 141.92 44.35

Mobile banking

133.32 41.66 140.22 43.81 136.64 42.70

Average 121.82 38.07 143.75 44.92 132.41 41.38


Table 4.16 shows the overall mean score obtained by the respondents in

respect of ATMs, internet banking and mobile banking services. The average

mean score obtained by the respondents was 41.38. The maximum mean score of

44.35 per cent was secured for internet banking followed by mobile banking 42.70

per cent. The minimum mean score of 38.82 was secured by the respondents for

ATMs services. The overall mean score obtained respondents both in public and

private sector bank was less than 50 per cent. There is a small variation in the

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overall mean score obtained by the respondents of public and private sector bank.

Therefore, it can be inferred from the table e-banking service users have low

satisfaction with e-banking services and the customer satisfaction with e-banking

services in private sector banks is better than that of public sector banks. The

overall mean secured by the respondents is also depicted in figure 4.2.

FIGURE 4.2

OVERALL MEAN SCORE TOWARDS E- BANKING SERVICES

33.88

44.5941.24

46.97

41.6643.81

38.07

44.92

0

10

20

30

40

50

ATM Internet

Banking

Mobile

Banking

Average

Public Sector Bank Mean score (%)

Private Sector Bank Mean score (%)

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Customer Satisfaction Level

Level of satisfaction after using a particular service has been examined

using eight parameters i.e. accessibility, convenience, Privacy, Security, Design,

Content, Speed and Fees and Charges.

The level of customer satisfaction of the respondents regarding ATMs,

Internet banking and Mobile banking is assumed to be normally distributed. The

level of customer satisfaction of the respondents is divided into three categories,

i.e. below average, average and above average levels, which have been defined as

Low, Medium and High level of satisfaction respectively. The lower and upper

limits of average level have been calculated with the help of the following formula:

Lower limit of average level = Mean - 1 Standard deviation

Upper limit of average level = Mean + 1 Standard deviation

Source: Dr. A.B.Bhatnagar; Measurement & Evaluation, P. 116-120

The customer satisfaction level for various customer satisfaction factors in

respect of ATMs, Internet banking and Mobile banking services in the public and

private sector banks is shown in the following tables.

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TABLE 4.17

CUSTOMER SATISFACTION TOWARDS OF ATM SERVICES

Customer satisfaction

Factor

No. of Respondents


Low Medium High Total Low

Medium High Total Low Medium High Total

Accessibility 72

(34.95) 86

(41.75) 48

(23.20) 206

(100.00) 65

(39.93) 72

(40.91) 39

(22.16) 176

(100.00) 137

(35.86) 158

(41.36) 87

(22.77) 382

(100.00)

Convenience 63

(30.58) 91

(44.17) 52

(25.24) 206

(100.00) 53

(30.11) 92

(52.27) 31

(17.61) 176

(100.00) 116

(30.37) 183

(47.91) 83

(21.73) 382

(100.00)

Privacy 94

(45.63) 75

(36.41) 37

(17.96) 206

(100.00) 27

17.31 96

(54.55) 53

(30.11) 176

(100.00) 121

(31.68) 171

(44.76) 90

(23.56) 382

(100.00)

Security 69

(33.50) 95

(46.12) 42

(20.39) 206

(100.00) 62

(35.23) 81

(46.02) 33

(18.75) 176

(100.00) 131

(34.29) 176

(46.07) 75

(19.63) 382

(100.00)

Design 102

(49.51) 71

(34.47) 33

(16.01) 206

(100.00) 34

(19.32) 95

(53.98) 47

(26.70) 176

(100.00) 136

(35.60) 166

(43.46) 80

(20.94) 382

(100.00)

Content 62

(30.09) 106

(51.46) 38

(18.45) 206

(100.00) 59

(33.52) 83

(47.16) 34

(19.32) 176

(100.00) 121

(31.68) 189

(49.47) 72

(18.85) 382

(100.00)

Speed 110

(53.40) 67

(32.52) 29

(14.08) 206

(100.00) 73

(41.48) 58

(32.95) 45

(25.57) 176

(100.00) 183

(47.91) 125

(32.72) 74

(19.37) 382

(100.00) Fees and Charges

61 (29.61)

93 (45.14)

52 (25.24)

206 (100.00)

127 (72.16)

37 (21.02)

12 (06.82)

176 (100.00)

188 (49.21)

130 (34.03)

64 (16.75)

382 (100.00)


138

In public sector banks, 23 per cent of the respondents have high level of

satisfaction, about 41 per cent have medium level satisfaction and 35 per cent of

the respondents have experienced low level of satisfaction. In private sector

bank, nearly 40 per cent each have low and medium level of satisfaction and 22

per cent of the respondents have enjoyed high level satisfaction. Therefore, it can

be inferred that the customers are moderately satisfied with ATMs services

provided by the public and private sector banks with regard to accessibility.

Regarding customer satisfaction level of ATMs services in respect of

convenience, 31 per cent, 44 per cent and 25 per cent of the respondents have

low, medium and high level satisfaction in public sector bank. In case of private

sector bank, majority of the respondents have medium level satisfaction, 30

percent have experienced low level and less than one-fourth of the respondents

have high level of satisfaction. Therefore, it is understood from the table that the

customer have medium level of satisfaction with ATMs services in relation to

convenience.

In case of privacy, 46 per cent of the respondents have low satisfaction

and majority of the respondents have medium level satisfaction in public and

private sector bank in respect of privacy while using ATMs services, which

indicates that the private sector bank provide more privacy than that of public

sector bank for ATMs services users.

About 46 per cent of the respondents each in public and private sector

bank have experienced medium level of satisfaction with regard to security for

ATMs service. Therefore, it is understood that the both the private and public

sector banks have provide medium level of security to ATMs services users.

139

As far as design in ATM machines is concerned, about 50 per cent and 19

per cent have low level of satisfaction. Therefore, it is inferred from the table,

private sector bank have good user friendly design whereas in private sector bank

have poor design in ATMs machines.

Regarding content of the ATM machines, nearly 50 per cent of the

respondents both in public and private sector bank have medium level of

satisfaction, which indicates that the content is not a major obstacle for ATMs

users.

Majority of the respondents and 41 per cent of the respondents in public

and private sector bank have low satisfaction in respect of speed while using

ATMs service. Therefore, it can be inferred from the table, there is a substantial

scope to increase speed in ATM machines to facilitate speedy transaction.

About 30 per cent and 72 per cent of the respondents in public and private

sector bank have low satisfaction with fees and charges for ATMs services. It is

noteworthy to mention that the ATMs services provided by the banks have

reduced the employees cost considerably, in spites of that the banks particularly

private sector banks have charged heavily for ATMs services. The combined

Customer satisfaction level of ATMs is also exhibited in figure 4.3.

140

FIGURE 4.3

CUSTOMER SATISFACTION LEVEL OF ATMs

020406080

100120140160180200

Acc

essi

bilit

y

Con

veni

ence

Pri

vacy

Sec

urity

Des

ign

Cont

ent

Spee

d

Fees

and

Cha

rges

Customer Satisfaction Factor

No. o

f Res

pond

ents

Low Medium High

141

TABLE 4.18

CUSTOMER SATISFACTION TOWARDS OF INTERNET BANKING SERVICES


Factor

No. of Respondents




Accessibility 34

(38.20) 43

(48.31) 12

(13.48) 89

(100.00) 18

(16.98) 39

(36.79) 49

(46.23) 106

(100.00) 52

(26.67) 82

(42.05) 61

(31.28) 195

(100.00)

Convenience 31

(34.83) 42

(47.19) 16

(17.98) 89

(100.00) 13

(12.26) 38

(35.85) 55

(51.89) 106

(100.00) 44

(22.56) 80

(41.02) 71

(36.41) 195

(100.00)

Privacy 14

(15.73) 33

(37.08) 42

(47.19) 89

(100.00) 08

(07.55) 29

(27.36) 69

(65.09) 106

(100.00) 22

(11.28) 62

(31.79) 111

(56.92) 195

(100.00)

Security 12

(13.48) 35

(39.33) 42

(47.19) 89

(100.00) 16

(15.09) 31

(29.24) 59

(55.67) 106

(100.00) 28

(14.35) 66

(33.85) 101

(51.79) 195

(100.00)

Design 48

(53.93) 26

(29.21) 15

(16.85) 89

(100.00) 57

(53.77) 31

(29.25) 18

(16.98) 106

(100.00) 105

(53.85) 57

(29.23) 33

(16.92) 195

(100.00)

Content 61

(68.54) 15

(16.85) 13

(14.61) 89

(100.00) 63

(59.43) 29

(27.36) 14

(13.21) 106

(100.00) 124

(63.59) 44

(22.56) 27

(13.84) 195

(100.00)

Speed 59

(66.29) 19

(21.35) 11

(12.35) 89

(100.00) 56

(52.83) 40

(37.74) 10

(09.43) 106

(100.00) 115

(58.97) 59

(30.26) 21

(10.77) 195


22 (24.72)

47 (52.81)

20 (22.47)

89 (100.00)

88 (83.02)

14 (13.21)

04 (03.77)

106 (100.00)

110 (56.41)

61 (31.28)

24 (12.31)

195 (100.00)


142

Table 4.18 shows the customer satisfaction with internet banking services

of public and private sector banks in the study area. Among the users of internet

banking services 48 per cent and 37 per cent of the respondents in the public and

private sector bank have experienced medium level satisfaction. About 38 per cent

in the public and 17 per cent in private sector bank have low level of satisfaction.

Nearly 13 per cent and 46 per cent in the same bank have enjoyed high level

satisfaction with internet banking services in respect of accessibility. Therefore, it

can be inferred from the table that private sector bank customers have high level

satisfaction as compared to public sector with regard to accessibility for using

internet banking services.

With regard to convenience, 35 per cent of the respondents in the public

sector bank and 13 per cent of the respondents in the private sector bank have

revealed low satisfaction. About 47 per cent and 36 per cent of the respondents

have expressed medium level of satisfaction. Further the table also exhibits that 52

per cent of the respondents in the private sector bank have experienced high level

of satisfaction as against 18 per cent in the public sector bank. Therefore, it can be

inferred from the table that the private sector bank customers have enjoyed high

level of satisfaction as compared to public sector bank in respect of convenience in

using internet banking services.

In public and private sector bank as much as 47 per cent and 65 per cent

have experienced high level of satisfaction with regard to privacy. It is understood

from the table that all the bank customers have enjoyed high level of privacy while

using internet banking services.

143

The table reveals that the nearly majority of the respondents highly satisfied

with security while using internet banking services. Therefore, it is inferred that

both the public and private sector banks provide high security for internet banking

transactions.

With regard to design, content and speed of e-banking medium of internet

banking, majority of the respondents in the public and private sector bank have

expressed low level of satisfaction. Therefore, it is inferred from the table the

design, content and speed of internet banking is not user-friendly, there is vast

amount of scope for improvement in the design, content and speed of the internet

banking.

Nearly one-fourth of the respondents in the public sector bank and 83 per

cent of the respondents in the private sector bank have reveled low level of

satisfaction with fees and charges charged by the banks. Therefore, in can be

concluded that the large number of customers in the private sector banks

dissatisfied with fees charged for internet banking services as compared to public

sector banks. The combined customer satisfaction factor is also exhibited in

figure 4.4.

144

FIGURE 4.4

COMBINED CUSTOMER SATISFACTION LEVEL OF INTERNET

BANKING SERVICES

020406080

100120140

Acce

ssib

ility

Conv

enie

nce

Priv

acy

Secu

rity

Desig

nCo

nten

tSp

eed

Fees

and

Char

ges


No.

of R

espo

nden

ts

Low Medium High

020406080

100120140

Acce

ssib

ility

Conv

enie

nce

Priv

acy

Secu

rity

Desig

nCo

nten

tSp

eed

Fees

and

Char

ges


No.

of R

espo

nden

ts

Low Medium High

145

TABLE 4.19

CUSTOMER SATISFACTION TOWARDS OF MOBILE BANKING SERVICES


Factor

No. of Respondents




Accessibility 79

(50.64) 54

(34.62) 23

(14.74) 156

(100.00) 33

(22.76) 64

(44.14) 48

(33.10) 145

(100.00) 112

(37.21) 118

(39.20) 71

(23.59) 301

(100.00)

Convenience 84

(53.85) 51

(32.69) 21

(13.46) 156

(100.00) 26

(17.93) 68

(46.90) 51

(35.17) 145

(100.00) 110

(36.54) 119

(39.53) 72

(23.92) 301

(100.00)

Privacy 41

(26.28) 52

(33.33) 63

(40.38) 156

(100.00) 35

(24.14) 49

(33.79) 61

(42.07) 145

(100.00) 76

(25.25) 101

(33.55) 124

(41.20) 301

(100.00)

Security 55

(35.26) 62

(39.74) 39

(25.00) 156

(100.00) 42

(28.97) 58

(40.00) 45

(31.03) 145

(100.00) 97

(32.23) 120

(39.87) 84

(27.91) 301

(100.00)

Design 72

(46.15) 53

(33.97) 31

(19.88) 156

(100.00) 65

(44.83) 46

(31.72) 34

(23.45) 145

(100.00) 137

(45.51) 99

(32.89) 65

(21.59) 301

(100.00)

Content 94

(60.26) 40

(25.64) 22

(14.10) 156

(100.00) 68

(46.90) 53

(36.55) 24

(16.55) 145

(100.00) 162

(53.82) 93

(30.90) 46

(15.28) 301

(100.00)

Speed 86

(55.13) 44

(28.21) 26

(16.67) 156

(100.00) 71

(48.96) 49

(33.79) 25

(17.24) 145

(100.00) 157

(52.16) 93

(30.90) 51

(16.94) 301


38 (24.36)

53 (33.97)

65 (41.67)

156 (100.00)

84 (57.93)

32 (22.07)

29 (20.00)

145 (100.00)

122 (40.53)

85 (28.24)

94 (31.23)

301 (100.00)


146

Table 4.19 depicts customers’ satisfaction level with mobile banking

services. Majority of the respondents in the public sector bank and less than one-

fourth of the respondents in the private sector bank have expressed low level of

satisfaction with mobile banking services. Therefore, it can be inferred that the

customers of private sector banks easily access mobile banking services than that

of their counterpart, public sector banks.

While consider the convenience to use mobile banking services, majority of

the respondents in the public sector bank and a minimum of 17 per cent of the

respondents in the private sector bank have low level of satisfaction. Therefore, it

is understood from the table that the private sector banks customers have much

convenience for using mobile banking services as compared private sector banks.

Table reveals that most of the respondents in the public and private sector

bank have satisfied with privacy aspect while using mobile banking services.

Therefore, it is inferred from the table that the Indian banking sector provides high

degree of privacy for mobile banking users.

In security aspect of mobile banking, 40 per cent of the respondents each

have expressed medium level of satisfaction and 25 per cent and 31 per cent have

revealed high level of satisfaction. Therefore, it can be inferred that the security is

not a major factor which affect the customer satisfaction of mobile banking users.

In respect of design, content and speed, considerable portion of the

respondents have expressed low satisfaction with mobile banking services, which

indicates that there is an urgent need to adopt new design, content and high speed

by the banking sector to improve customers satisfaction.

147

Among the users of mobile banking users, majority of the respondents in

the private sector bank and one-fourth of the respondents in the public sector bank

have exposed low satisfaction level for fees and charges charged to use mobile

banking services. Therefore, it is understood from the table that the customers are

dissatisfied with the fees structure of private sector banks when compared to public

sector bank for using mobile banking services.

In nutshell, customers are moderately satisfied with ATMs services

provided by the public and private sector banks. The private sector bank customers

have high level satisfaction as compared to public sector with regard to

accessibility for using internet banking services and customers of private sector

banks easily access mobile banking services than that of their counterpart, public

sector banks.

The customer have medium level of satisfaction with ATMs services and

the private sector bank customers have enjoyed high level of satisfaction as

compared to public sector bank in respect of convenience in using internet banking

services and mobile banking services.

The customers are moderately satisfied with ATMs services provided by

the public and private sector banks and all the customers have enjoyed high level

of privacy while using internet banking services and mobile banking services. Both

the private and public sector banks have provide medium level of security to

ATMs services users. The security is not a major factor which affects the customer

satisfaction of internet banking and mobile banking users.

148

The private sector bank have good user friendly design whereas in private

sector bank have poor design in ATMs machines. The content is not a major

obstacle for ATMs users. There is a substantial scope to increase speed in ATM

machines to facilitate speedy transaction. The design, content and speed of

internet banking and mobile banking is not user-friendly, which indicates that there

is an urgent need to adopt new design, content and high speed by the banking

sector to improve customers satisfaction.

The large number of customers in the private sector banks dissatisfied with

fees charged for ATMs, internet banking and mobile banking services as compared

to public sector banks. The combined customer satisfaction level with mobile

banking services is also presented in figure 4.5

149

FIGURE 4.5

COMBINED CUSTOMER SATISFACTION TOWARDS OF MOBILE BANKING SERVICES

020406080

100120140160180

Acc

essi

bilit

y

Con

veni

ence

Priv

acy

Secu

rity

Des

ign

Con

tent

Spee

d

Fees

and


No.

Of R

espo

nden

ts

Low Medium High

COMBINED CUSTOMER SATISFACTION TOWARDS OF E-BANKING

SERVICES

The present status of e-banking products is analyzed in all the banks with

the help of total customer satisfaction level (CSL) and total number of respondents

using these products. There are 64 statements, each carrying a maximum score of

five and minimum score of one. For all the 64 statements, the maximum score, one

can get is 320, if one strongly agrees with all the statements. Similarly the

minimum score one can get is 64, if one strongly disagrees to all the 64 statements.

Hence, the total scores very from 64 to 320.

150

TABLE 4.20

CUSTOMER SATISFACTION TOWARDS OVERALL E-BANKING SERVICES

E-banking services


Low Medium High Total Low Medium High Total Low Medium High Total

ATM 120

(58.25) 69

(33.50) 17

(08.25) 206

(100.00) 69

(39.20) 75

(42.61) 32

(18.18) 176

(100.00) 189

(49.48) 144

(37.70) 49

(12.83) 382

(100.00)

Internet banking 38

(42.70) 29

(32.58) 22

(24.72) 89

(100.00) 48

(45.28) 32

(30.19) 26

(24.53) 106

(100.00) 86

(44.10) 61

(31.28) 48

(24.62) 195

(100.00)

Mobile banking 69

(44.23) 61

(39.10) 26

(16.67) 156

(100.00) 73

(50.34) 54

(37.24) 18

(12.41) 145

(100.00) 142

(47.17) 115

(38.21) 44

(14.62) 301

(100.00) Source: Primary data

151

Table 4.20 reveals that the combined customer satisfaction level of selected

e-banking services. Out of 206 ATMs service users in public sector bank, the low

customer satisfaction level is maximum with 58 per cent respondents, 34 per cent

of the respondent got medium customer satisfaction and small portion of eight per

cent of the respondents exposed high customer satisfaction. Similarly, out of 176

respondents in the private sector bank 43 per cent have expressed medium level of

customer satisfaction, 39 percent have exposed low satisfaction

In case of internet banking services, there are 89 internet banking users in

the public sector bank, among them, 43 per cent are have low customer

satisfaction, 33 per cent have medium and one-fourth of the respondents have high

satisfaction. Likewise, there are 106 internet banking users in the private sector

bank, out of them, 45 per cent have secured low satisfaction, 30 per cent and 25 per

cent have expressed medium and high level of satisfaction.

Among the 156 users of mobile banking services in the public sector bank,

44 per cent secured low satisfaction,39 per cent expressed medium satisfaction

level and 17 per cent have enjoyed high level of customer satisfaction. Out of 145

mobile banking users in the private sector bank, 50 per cent have expressed low

satisfaction, 37 per cent have exposed medium level and 12 per cent are enjoyed

high level of customer satisfaction.

The table also reveals that dissatisfied level is highest in case of ATMs in

the public sector banks as compared to private sector banks whereas in case of

internet banking and mobile banking dissatisfied level is highest in public sector

banks when compared to private sector bank. The combined customer satisfaction

level of e-banking services is also exhibited in figure 4.6.

152

FIGURE 4.6

CUSTOMER SATISFACTION LEVEL OF E-BANKING SERVICES

189

86

142 144

61

115

49 48 44

382

195

301

0

50

100

150

200

250

300

350

400

No.

of R

espo

nde

nts

Low Medium High Total Satisfaction Level

ATM Internet banking Mobile banking

153

F-Test

F-test is applied to find out whether there is any difference in the customer

satisfaction on e-banking services between the public sector banks and private sector

banks is significant or not. The F – values calculated were compared with the table ‘F’

values (at 5% level and at 1% level) to test the significance of variation in respect of

customer satisfaction level among the customers of public and private sector banks.

The results were tabulated and interpreted in respect of overall customer satisfaction in

table 4.21.

Null hypothesis

The customers of public and private sector banks experience the same level of

satisfactions with e-banking services.

TABLE 4.21

CUSTOMER SATISFACTION BETWEEN PRIVATE AND PUBLIC SECTOR

BANKS (ANOVA)

Category SS df MS F-Value

ATMs Services and Customer Satisfaction

Between groups

150.00 1 150.00

0.094 Within groups 6389.33 4 1597.33

Total 6539.33 5

Internet banking Services and Customer Satisfaction

Between groups

48.17 1 48.17 0.4974 Within groups 387.33 4 96.83

Total 435.50 5

Mobile banking Services and Customer Satisfaction

Between groups

20.17 1 20.1667 0.0309

Within groups 2606.67 4 651.6667

Total 2626.83 5

The analysis of variance shows that the calculated value is less than the

tabulated value at 5% and 1% level of significance. The Ho is accepted. Hence, it was

154

found that the customers of public and private sector banks experience the same level

of satisfactions with reference to e-banking services.

Inter Correlation Matrix of Customer Satisfaction On E-Banking Services

In order to analyze whether there is any positive correlation between overall

customer satisfactions on e-banking services of ATMs, internet banking and mobile

banking services and the different customer satisfaction factors, a null hypotheses is

framed and tested with the help of correlation analysis, which is shown in the following

tables.

Inter Correlation Matrix of ATMs

To analyze the relationship between customer satisfaction on ATM services and

the customer satisfaction, a null hypothesis is framed and tested with the help of inter

correlation matrix.

Null Hypothesis Ho:

The customer satisfaction factors, Accessibility, Convenience, Privacy,

Security, design, Content, Speed, fees and charges has a positive significant association

with customer satisfaction on e-banking services.

The test statistic used to test the null hypothesis is

t =r

sqrt[(1—r2)/(N—2)]

155

TABLE 4.22

INTER CORRELATION MATRIX OF CUSTOMER SATISFACTIONS – ATMS (N =382)

CS F1 F2 F3 F4 F5 F6 F7 F8

CS 1.00

F1 0.82** 1.00

F2 0.51** 0.92** 1.00

F3 0.56** 0.93** 0.99** 1.00

F4 0.71** 0.99** 0.97** 0.99** 1.00

F5 0.78** 0.99** 0.93** 0.94** 0.98** 1.00

F6 0.59** 0.95** 0.99** 0.99** 0.99** 0.96** 1.00

F7 0.97** 0.66** 0.47 ** 0.34 ** 0.52** 0.61** 0.38** 1.00

F8 0.99** 0.71** 0.36 ** 0.41** 0.58** 0.97** 0.45** 0.99** 1.00

** Significant at 5% and 1% level. * Significant at 1% level.

Where;

CS = Overall customer satisfaction. F1 = Accessibility, F2 = Convenience,

F3 = Privacy, F4 = Security, F5 = Design, F6 = Content, F7 = Speed, F8 = fees and

charges.

It is understood from the Table 4.22 that there is a significant association

between overall customer satisfaction on ATMs services and customer satisfaction

factors, Accessibility, Convenience, Privacy, Security, design, Content, Speed and fees

and charges. Hence, it can be inferred that the customer satisfaction factors has a

positive significant influences on the customer satisfaction on ATMs services.

156

Inter Correlation Matrix for Internet Banking

To analyze the relationship between customer satisfaction on internet banking

services and the customer satisfaction, a null hypothesis is framed and tested with the

help of inter correlation matrix.

TABLE 4.23

INTER CORRELATION MATRIX OF CUSTOMER SATISFACTIONS – INTERNET BANKING (N =195)

CS F1 F2 F3 F4 F5 F6 F7 F8

CS 1.00

F1 -0.50 1.00

F2 -0.83 0.87** 1.00

F3 -0.97 0.22 0.68** 1.00

F4 -0.98 0.31 0.74** 0.99** 1.00

F5 0.99** -0.46 -0.84 -0.97 -0.98 1.00

F6 0.98** -0.61 -0.92 -0.91 -0.94 0.99** 1.00

F7 0.99** -0.40 -0.79 -0.98 -0.99 0.99** 0.97** 1.00

F8 0.99** -0.37 -0.77 -0.99 -0.99 0.98** 0.96** 0.99** 1.00


Where;



charges.

Table 4.23 reveals that the factors security, design, content, speed and fees and

charges have significant positive association with the overall customer satisfaction, it

implies that these factors have influenced the customer satisfaction on internet banking

services. However the factors, accessibility, convenience, privacy and security have

negative correlation with overall customer satisfaction.

157

Inter Correlation Matrix of Mobile Banking

To analyze the relationship between customer satisfaction on mobile banking

services and the customer satisfaction, a null hypothesis is framed and tested with the

help of inter correlation matrix.

TABLE 4.24

INTER CORRELATION MATRIX OF CUSTOMER SATISFACTIONS – MOBILE BANKING (N =301)

CS F1 F2 F3 F4 F5 F6 F7 F8

CS 1.00

F1 0.93** 1.00

F2 0.90** 0.99** 1.00

F3 -0.96 -0.79 -0.75 1.00

F4 0.58** 0.84** 0.88** -0.33 1.00

F5 0.96** 0.78** 0.74** -0.99 0.33** 1.00

F6 0.93** 0.73** 0.62** -0.98 0.25* 0.99** 1.00

F7 0.93** 0.72** 0.68** -0.99 0.24* 0.99** 0.96** 1.00

F8 0.53** 0.17 0.11 -0.74 -0.38 0.75** 0.80** 0.80** 1.00


Where;



charges.

Table 4.24 indicates that all the customer satisfaction factors such as

accessibility, convenience, security, design, content, speed, fees and charges have

positive significant association with customer satisfactions on mobile banking services.

However the factor Privacy has negative correlation with overall customer satisfaction

on mobile banking services.

158

Demographic Variables and Customer Satisfaction

The level of customer satisfaction of e-banking services in the study units in

accordance with individual demographic variables such as gender, age, education,

occupation, and income is analyzed and presented in following tables.

Sex and Customer Satisfaction Level of ATMs

The customer satisfaction level of ATMs services and sex of the respondents is

shown in table 4.25.

TABLE 4.25

SEX AND CUSTOMER SATISFACTION LEVEL OF ATMs SERVICES

Sex No. of Respondents

Low Medium High Total

Male 148

(54.82) 95

(35.18) 27

(10) 270

(100)

Female 41

(36.61) 49

(43.75) 22

(19.64) 112

(100)

Total 189

(49.48) (144)

(37.69) 49

(12.83) 382

(100.00) Source: primary data, figure in the bracket percentage to the total.

Table 4.25 depicts the sex and customer satisfaction on ATMs services. Out of

270 male respondents majority of them (54.82 %) have the experience of low

satisfaction. The reason for that may insufficiency currency in ATM machines and out

of services. Nearly one-third of male respondents (35.18 %) who have medium

satisfaction and 10 per cent of the total respondents have high satisfaction. It is inferred

from the table that the male customers have low satisfaction with ATMs services as

compared to female respondents in the study area.

159

Sex and Customer Satisfaction Level of Internet Banking

The sex of the respondents and their level of satisfaction with internet banking

services is shown in table 4.26

TABLE 4.26

SEX AND CUSTOMER SATISFACTION LEVEL OF INTERNET BANKING SERVICES



Male 52

(42.62) 43

(35.25) 27

(22.13) 122

(100)

Female 34

(46.58) 18

(24.66) 21

(28.76) 73

(100)

Total 86

(44.1) 61

(31.28) 48

(24.62) 195


Table 4.26 indicates that out of 195, 86 respondents have reveled low

satisfaction with internet banking, of which 42.62 per cent male and 46.58 per cent are

female respondents. Among the respondents who have secured medium and high level

satisfaction, majority of them are male respondents. But, female respondents have high

satisfaction as compare with male respondents. It is understood from the table that the

male customers have low satisfaction as compared to their counterpart, female

customers.

160

Sex and Customer Satisfaction Level of Mobile Banking Services

Sex of the respondents and their level of satisfaction with mobile banking

services is shown in table 4.27

TABLE 4.27

SEX AND CUSTOMER SATISFACTION LEVEL OF MOBILE BANKING SERVICES



Male 96

(44.24) 84

(38.71) 37

(17.05) 217

(100)

Female 46

(54.77) 31

(36.9) 07

(8.33) 84

(100)

Total 142

(47.18) 115

(38.21) 44

(14.61) 301


Table 4.27 shows that there were 301 sample mobile banking users. Among

them 142, 115 and 44 respondents were revealed low, medium and high satisfaction

respectively. The respondents who have exposed low, medium and high satisfaction,

majority of them are male respondents. It is inferred from the table that majority of the

male customers in the both public and private sector banks have low satisfaction with

mobile banking services.

The analyses of the customer satisfaction indicate that the most of the male

respondents have low satisfaction with selected e-banking services of ATMs, internet

banking and mobile banking.

161

Age and Customer Satisfaction Level of ATM Services

The age wise distribution of the respondents and customer satisfaction level of

ATMs is shown in table 4.28.

TABLE 4.28

AGE AND CUSTOMER SATISFACTION LEVEL OF ATM SERVICES

Age (Years) No. of Respondents


Bellow 25 24

(43.64) 15

(27.27) 16

(29.09) 55

(100)

25 – 35 94

(63.08) 46

(30.88) 09

(6.04) 149

(100)

35 – 45 44

(55) 22

(27.5) 14

(17.5) 80

(100)

Above 45 27

(27.55) 61

(62.24) 10

(10.21) 98

(100)

Total 189

(49.48) 144

(37.69) 49

(12.83) 382


Table 4.28 depicts the age and customer satisfaction on ATMs. About 50 per

cent of the respondents belong to the age group of 25 - 35 years has low level

satisfaction followed by the age group of above 45 years. Out of 382 respondents, 189,

144 and 49 respondents has experienced Low, Medium and High level of satisfaction

respectively. Among the respondents who have enjoyed high level of satisfaction,

nearly 30 percent of the respondents were in the below 25 years have high level of

satisfaction. Among the respondents who have enjoyed medium level of satisfaction

majority of them (62%) is in the age group of above 45. Out of 189 respondents who

have secured low satisfaction majority of them (63%) in the age group of 25 – 35.

Therefore, it can be inferred from the table that the customers in the age group of 25 -

35 years may have dissatisfied with the ATMs services provided by the banks in the

study area.

162

Age and Customer Satisfaction Level of Internet Banking Services

The customer satisfaction level of internet banking and age of the respondents is


TABLE 4.29

AGE AND CUSTOMER SATISFACTION LEVEL OF INTERNET BANKING SERVICES



Bellow 25 21

(55.26) 11

(28.95) 06

(15.79) 38

(100)

25 – 35 40

(46.51) 24

(27.91) 22

(25.58) 86

(100)

35 – 45 05

(20.83) 13

(54.17) 06

(25) 24

(100)

Above 45 20

(42.55) 13

(27.66) 14

(29.79) 47

(100)

Total 86

(100.00) 61

(31.28) 48

(24.62) 195


Regarding the internet banking services, out of 195 internet banking users, 86,

61, and 48 respondents have expressed low, medium and high satisfaction respectively.

The majority of internet users (86) fall in age group of 25 – 35. Out of them 47 per

cent, 28 per cent and 26 per cent of respondents have low, medium and high level

satisfaction respectively. Above 45 age group of people availing internet banking

followed by 25 – 35 age group. Among them 43 per cent, 28 per cent and 30 per cent

of respondents have low, medium and high level of satisfaction respectively. In the

age group if 35 – 45, 24 respondents are using Internet Banking out of them 21 per

cent, 55 per cent and 25 per cent of respondents have the experience of low, medium

and high level satisfaction respectively. It is understood from the table the customers in

the age group of 40-50 years have disgruntled with the internet banking services in the

study area.

163

Age and Customer Satisfaction Level of Mobile Banking Services

The customer satisfaction level of mobile banking and age of the respondents is


TABLE 4.30

AGE AND CUSTOMER SATISFACTION LEVEL OF MOBILE BANKING SERVICES


Low Moderate High Total

Bellow 25 21

(50) 12

(28.57) 09

(21.43) 42

(100)

25 – 35 65

(53.72) 39

(32.23) 17

(14.05) 121

(100)

35 – 45 32

(47.76) 22

(32.84) 13

(19.4) 67

(100)

Above 45 24

(33.8) 42

(59.15) 05

(7.05) 71

(100)

Total 142

(47.18) 115

(38.21) 44

(14.61) 301


Table 4.30 reveals among the users of mobile banking services in the study

area, 46 per cent of the respondents in the age group of 25 - 45 years expressed low

satisfaction followed by 35 – 45 age group of respondents. It is noteworthy to mention

that the maximum number respondents in the age group of 25 - 35 years have low level

of customer satisfaction as compared to other age groups with e-banking services

provided by the public and private sector banks in the study area.

164

Education and Customer Satisfaction Level of ATM

The educational qualifications and customer satisfaction level of ATM in public

and private sector banks in the study area is shown in table 4.31.

TABLE 4.31

EDUCATION AND CUSTOMER SATISFACTION LEVEL OF ATM SERVICES

Educational qualifications

No. of Respondents Low Moderate High Total

Up to HSC 17

(37.78) 16

(35.56) 12

(26.66) 45

(100)

Graduate 86

(47.78) 80

(44.44) 14

(7.78) 180

(100)

Post Graduate 58

(56.86) 35

(34.31) 09

(8.83) 102

(100)

Professional 28

(50.91) 13

(23.64) 14

(25.45) 55

(100)

Total 189

(49.48) 144

(37.7) 49

(12.82) 382


The table 4.31 depicts the educational qualifications and their customer

satisfaction on e-banking services of ATM service. Nearly majority of the respondents

are having low level of satisfaction, among them graduates are majority, followed by

post graduates, which indicates that the graduate and post graduate are highly

dissatisfied with the ATMs service performance of the banks in the study area.

165

Education and Customer Satisfaction Level of Internet Banking Services

The educational qualifications and customer satisfaction level of internet

banking is shown in table 4.32.

TABLE 4.32

EDUCATION AND CUSTOMER SATISFACTION LEVEL OF INTERNET BANKING SERVICES


No. of Respondents Low Moderate High Total

Up to HSC 08

(53.34) 05

(33.33) 02

(13.33) 15

(100)

Graduate 37

(48.68) 21

(27.64) 18

(23.68) 76

(100)

Post Graduate 24

(38.71) 23

(37) 15

(24.19) 62

(100)

Professional 17

(40.48) 12

(28.57) 13

(30.95) 42

(100)

Total 86

(44.1) 61

(31.28) 48

(24.61) 195


Table 4.32 shows 86 respondents are having low level of satisfaction out of 195

internet banking service users. The respondents who are having low level of

satisfaction, 8, 37 and 24 respondents are graduate, post graduate and professionals

respectively. It can be inferred from the table graduate customers have dissatisfied with

the internet banking performances as compared other customers.

166

Education and Customer Satisfaction Level of Mobile Banking Services

The educational qualifications and customer satisfaction level of mobile

banking is shown in table 4.33.

TABLE 4.33

EDUCATION AND CUSTOMER SATISFACTION LEVEL OF MOBILE BANKING SERVICES


No. of Respondents Low Medium High Total

Up to HSC 12

(42.86) 10

(35.71) 06

(21.43) 28

(100)

Graduate 84

(57.14) 48

(32.65) 15

(10.21) 147

(100)

Post Graduate 39

(46.43) 32

(38.1) 13

(15.47) 84

(100)

Professional 07

(16.67) 25

(59.52) 10

(23.81) 42

(100)

Total 142

(47.18) 115

(38.21) 44

(14.61) 301


Table 4.33 clearly shows that out of 142 respondents who are having low level

of satisfaction with mobile banking, majority of the respondents are graduates followed

by post graduates respondents. So, it is understood from the analysis that the graduate

customers dissatisfied with e-banking performance of the banks as compared to other

customers in the study area.

167

Occupation and Customer Satisfaction Level of ATM Services

The occupation of the respondents and customer satisfaction level of ATM in

public and private sector banks is shown in table 4.34

TABLE 4.34

OCCUPATION AND CUSTOMER SATISFACTION LEVEL OF ATM SERVICES

OCCUPATION No. of Respondents


Salaried 84

(56.38) 51

(34.23) 14

(9.39) 149

(100)

Professional 18

(40.91) 14

(31.82) 12

(27.27) 44

(100)

Business 64

(51.61) 52

(41.94) 08

(6.45) 124

(100)

Retired 17

(42.5) 12

(30) 11

(27.5) 40

(100)

Housewife 06

(24) 15

(60) 04

(16) 25

(100)

Total 189

(49.48) 144

(37.7) 49

(12.82) 382


Table 4.34 shows the respondents who are salaried employees have low level of

satisfaction followed by the respondents who are running the business. A insignificant

portion of the professionals, retired employees and housewife are having low level of

satisfaction. It is inferred from the table that more number of salaried customers and

business customers are having low satisfaction with ATMs services.

168

Occupation and Customer Satisfaction Level of Internet Banking Services

The occupation of the respondents and customer satisfaction level of internet

banking services is shown in table 4.35

TABLE 4.35

OCCUPATION AND CUSTOMER SATISFACTION LEVEL OF INTERNET BANKING SERVICES



Salaried 27

(51.93) 14

(26.92) 11

(21.15) 52

(100)

Professional 14

(43.75) 10

(31.25) 08

(25) 32

(100)

Business 38

(40) 33

(34.74) 24

(25.26) 95

(100)

Retired 05

(45.45) 02

(18.18) 04

(36.37) 11

(100)

Housewife 02

(40) 02

(40) 01

(20) 05

(100)

Total 86

(44.1) 61

(31.28) 48

(24.62) 195


Table 4.35 shows that out of 195 internet banking users, 86 respondents were

secured low satisfaction, among them, majority are business and salaried respondents.

Out of 61 and 48 respondents who are having medium and high level of satisfaction,

the business respondents have expressed medium and high level of satisfaction with

internet banking services. It can be concluded that the salaried and business customers

are having very low satisfaction among the customers who have expressed low

satisfaction with internet banking performance.

169

Occupation and Customer Satisfaction Level af Mobile Banking Services

The occupation of the respondents and customer satisfaction level of mobile

banking is shown in table 4.36

TABLE 4.36

OCCUPATION AND CUSTOMER SATISFACTION LEVEL OF MOBILE BANKING SERVICES



Salaried 41

(35.66) 60

(52.17) 14

(12.17) 115

(100)

Professional 14

(37.84) 12

(32.43) 11

(29.73) 37

(100)

Business 58

(57.43) 34

(33.66) 09

(8.91) 101

(100)

Retired 22

(68.75) 04

(12.5) 06

(18.75) 32

(100)

Housewife 07

(43.75) 05

(31.25) 04

(25) 16

(100)

Total 142

(47.18) 115

(38.21) 44

(14.61) 301


In customer satisfaction level with mobile banking services, out of 142 low

satisfaction customers business respondents and salaried respondents are maximum.

The analysis of the customer satisfaction with mobile banking services revealed that

salaried and business customers are having very low satisfaction.

170

Income and Customer Satisfaction Level of ATM Services

The customer satisfaction level of ATM and income of the respondents is shown

in table 4.37.

TABLE 4.37

INCOME AND CUSTOMER SATISFACTION LEVEL OF ATM SERVICES

Annual Income ( ) No. of Respondents


Less than ( )1 lakh 42

(60) 19

(27.14) 09

(12.86) 70

(100)

( ).1 – 2 lakhs 43

(44.38) 38

(39.18) 16

(16.49) 97

(100)

( ) 2 –3 lakhs 33

(47.14) 29

(41.43) 08

(11.43) 70

(100)

( )3-4 lakhs 38

(55.88) 24

(35.29) 06

(8.83) 68

(100)

Above ( ) 4 lakhs 33

(42.86) 34

(44.16) 10

(12.98) 77

(100)

Total 189

(49.48) 144

(37.69) 49

(12.83) 382


Table 4.37 shows that income wise distribution of the respondents and their

satisfaction level with ATMs services. Out of 189 respondents, who have experienced

as low satisfaction level majority of them belongs to 1-2 lakhs income group. In this

group 144 respondents experienced as medium level satisfaction, among them, large

number of respondents belongs to above 4 lakh. 49 respondents has high level

satisfaction with ATMs services. Out of them, 1-2 lakhs income level has large

number of respondents. It is inferred from the table that the fifty per cent of the ATM

service users have low satisfaction and remaining 50 per cent have medium and high

satisfaction and there is no major variation between income and satisfaction level of the

respondents who are having low satisfaction with ATM services.

171

Income and Customer Satisfaction Level of Internet Banking Services

The customer satisfaction level of internet banking and income of the respondents

is shown in table 4.38.

TABLE 4.38

INCOME AND CUSTOMER SATISFACTION LEVEL OF INTERNET BANKING SERVICES

Income ( ) No. of Respondents



(46.15) 09

(34.61) 05

(19.24) 26

(100)

( ).1 – 2 lakhs 23

(41.82) 18

(32.73) 14

(25.45) 55

(100)

( ) 2 –3 lakhs 14

(43.75) 07

(21.87) 11

(34.38) 32

(100)

( )3-4 lakhs 11

(39.28) 09

(32.14) 08

(28.58) 28

(100)

Above ( ) 4 lakhs 26

(48.15) 18

(33.33) 10

(18.52) 54

(100)

Total 86

(44.1) 61

(31.28) 48

(24.62) 195


Table 4.38 shows out of 195 internet banking users, 86, 61, and 48 respondents

have low, medium and high level of satisfaction respectively. Among the respondents

who have low satisfaction, 48.15 per cent of the respondents’ annual income is above

4 lakhs and 43.75 per cent of the respondents’ annual income is between 2- 3 lakhs,

46.15 per cent of the respondents’ annual income is less than 1 lakhs, 41.82 per cent

of the respondents’ annual income is between 1- 2 lakhs, 39.28 per cent of the

respondents’ annual income is between 3- 4 lakhs. Out of 61 respondents who have

medium level satisfaction, majority of them have annual income of .1 – 2 lakhs and

above 4 lakhs. The respondents who have expressed high satisfaction level, 25.45 per

cent of the respondents monthly income is 2 – 3 lakhs. It is inferred from the table

that among the dissatisfied customers, the high income group has low satisfaction in

relation to internet banking performance.

172

Income and Customer Satisfaction Level of Mobile Banking Services

The customer satisfaction level of mobile banking and income of the

respondents is shown in table 4.39.

TABLE 4.39

INCOME AND CUSTOMER SATISFACTION LEVEL OF MOBILE BANKING SERVICES

Income ( ) No. of Respondents



(47.73) 16

(36.36) 07

(15.91) 44

(100)

( ).1 – 2 lakh 45

(53.57) 27

(32.14) 12

(14.29) 84

(100)

( ) 2 –3 lakh 33

(50.77) 23

(35.38) 09

(13.85) 65

(100)

( )3-4 lakh 28

(53.85) 14

(26.92) 10

(19.23) 52

(100)

Above ( ) 4 lakh 15

(26.79) 35

(62.5) 06

(10.71) 56

(100)

Total 142

(47.18) 115

(38.21) 44

(14.61) 301


Table 4.39 indicates that out of 142 and 115 respondents who have low and

medium level satisfaction with mobile banking services. Among the respondents large

number of respondents belongs to the income between 1 – 2 lakhs. In this income

group more than 50% have low satisfaction with Mobile Banking services. 115

respondents have medium level of experience, majority of them (35) belongs to above

4 lakh. 44 respondents have high level of satisfaction; majority of them belongs to

3 – 4 lakh. It is understood from the table, among the dissatisfied customer, the

middle income group of the respondents i.e., annual income is in between 1 – 3 lakhs,

are highly dissatisfied with the mobile banking performance.

173

Demographic Variables and Customer Satisfactions

To analyze the relationship between demographic variables such as sex, age,

educational qualifications, occupation and income and customer satisfactions with e-

banking services, a null hypothesis is framed and tested with the help chi-square test.

The result of the chi-square test is shown in tables

Demographic Variables and Customer Satisfactions Level on ATM Services

The relationship between individual demographic variables and customer

satisfaction level on ATM services is presented in Table 4.40.

Null hypothesis

There is no relationship between demographic variables of the respondents and

their satisfaction on ATMs service performance.

TABLE 4.40

CHI-SQUARE TEST RESULT – ATM SERVICES

Demographic variable

Chi-Square Test – Value

Table value 5% level


Ho Accepted / Rejected

Significance

Sex and satisfactions 12.6 12.59 16.81 Rejected *Significant Age and satisfactions 55.6 12.59 16.81 Rejected **Significant Educational qualifications and satisfactions

26.3 12.59 16.81 Rejected **Significant

Occupation and satisfactions 30.6 15.51 20.09 Rejected **Significant

Income and satisfactions 8.72 15.51 20.09 Accepted Not

significant *Significant at 5% level; ** Significant both at 5% level and 1% level.

As per table 4.40, there is a significant relationship among the demographic

variables, sex, age, educational qualifications, occupations and customer satisfactions.

However, there is no significant relationship between income and customer

satisfactions.

174

Demographic Variables and Customer Satisfactions Level on Internet Banking

Services


satisfaction level on internet banking is shown in Table 4.41.

Null hypothesis


their satisfactions on internet banking performance.

TABLE 4.41

CHI-SQUARE TEST RESULT – INTERNET BANKING SERVICES






Significance

Sex and satisfactions 2.62 12.59 16.81 Accepted Not

significant

Age and satisfactions 10.5 12.59 16.81 Accepted Not

significant Educational qualifications and satisfactions

3.79 12.59 16.81 Accepted Not

significant Occupation and satisfactions

3.44 15.51 20.09 Accepted Not

significant

Income and satisfactions 4.11 15.51 20.09 Accepted Not

significant *Significant at 5% level; ** Significant both at 5% level and 1% level.

The chi-square test result reveals that there is no significant relationship

between demographic variables, sex, age, educational qualifications, occupation and

income and customer satisfactions on internet banking performance.

175

Demographic Variables and Customer Satisfactions Level on Mobile Banking

Services


satisfaction level on mobile banking is shown in table 4.42.

Null hypothesis


their satisfaction on mobile banking performance.

TABLE 4.42

CHI-SQUARE TEST RESULT – MOBILE BANKING SERVICES






Significance

Sex and satisfactions 4.62 12.59 16.81 Accepted Not

significant Age and satisfactions 19.9 12.59 16.81 Rejected *Significant Educational qualifications and satisfactions


Occupation and satisfactions


Income and satisfactions 19.1 15.51 20.09 Rejected *Significant *Significant at 5% level; ** Significant both at 5% level and 1% level.

Table 4.23 reveals that there is a significant relationship between the

demographic variables, age, educational qualifications occupation, income and

customer satisfaction on mobile banking, whereas there is no relationship between sex

of the respondents and customer satisfaction on mobile banking services.

chapter – iv awareness and customer satisfaction on...

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