http://www.iaeme.com/IJM/index.asp 649 [email protected]
International Journal of Management (IJM)
Volume 11, Issue 6, June 2020, pp. 649-664, Article ID: IJM_11_06_054
Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=11&IType=6
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: 10.34218/IJM.11.6.2020.054
© IAEME Publication Scopus Indexed
CUSTOMER SATISFACTION ON E-BANKING
SERVICES OF PUBLIC AND PRIVATE SECTOR
BANKS IN PUDUCHERRY REGION - AN
EMPIRICAL ANALYSIS
K. Madavan
Ph.D Scholar, Department of Corporate Secretaryship, School of Management,
Alagappa University, Karaikudi, Tamilnadu, India.
Dr. C. Vethirajan*
Professor and Head, Department of Corporate Secretaryship, School of Management,
Alagappa University, Karaikudi, Tamil Nadu, India.
*Corresponding Author Email : [email protected]
ABSTRACT
E-banking is the application of electronic means in interaction between bankers
and customer, and bankers and businesses, as well as in internal banking operations,
to simplify and progress the banking services. Today, approximately all banks have
adopted ICT as a mean of improving the service quality of banking services. An
attempt has been made by evaluating the services rendered by banks through the e –
banking services. The e- banking service brings lot of convinienence, customer
centricity, augmented service quality and cost effectiveness. A structured
questionnaire was used in collecting the relevant data from the customers
respectively. More number of researchers and experts quoted that, service quality can
be improved through advanced information and communication technology (ICT).
This paper examines the customer satisfaction on the Electronic Banking Services of
Public Sector and Private Sector Banks in Puducherry Region. The sample size of the
study is 478; the data is gathered from both the primary and secondary information.
Non Probability sampling techniques are applied in this research article and
particularly purposive sampling technique applied for the study. Some of the
statistical tools like, independent sample t-test, ANOVA, correlation, Mean and
Standard Deviation are used in this research article. The result of the study shows that
customers of Public Sector Banks have lesser perception of the various dimensions of
e-service quality compared with the private sector Banks. This paper recommends that
the wider use of IOT based applications in banking services will make better banking
solutions.
Key words: Electronic Banking Services, Electronic Service Quality, Perception,
Customer Satisfaction & ICT
Customer Satisfaction on E-Banking Services of Public and Private Sector Banks in Puducherry
Region - An Empirical Analysis
http://www.iaeme.com/IJM/index.asp 650 [email protected]
Cite this Article: K. Madavan and Dr. C. Vethirajan, Customer Satisfaction on
E-Banking Services of Public and Private Sector Banks in Puducherry Region - An
Empirical Analysis. International Journal of Management, 11 (6), 2020, pp. 649-664.
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=6
1. INTRODUCTION
Customers are now conscious of their rights and this tends focus the banks to shift from
“product centric” to “customer centric”. This expectation creates pressure to service providers
to perform better. E-banking service initiatives are results of such pressures by the customers
of the bank combined with the capabilities achieved through the use of Information and
Communication Technology. E-banking is the application of electronic means in the
interaction between bankers and customers and bankers and businesses, as well as in internal
banking operations, to simplify and improve banking services. One of the important aspects
of e-banking is the use of web portals of the banks as an electronic medium for bank-
customers interactions and transactions. The ultimate goal of any business organization is
generation of profits through their sales or rendering services and the same can be achieved
with attaining customer satisfaction through the better service quality. A satisfied customer
will continue their relationship with banks and refer the banking services to other as well,
generating more sales and hence more profits. Customer satisfaction is considered as a
necessary condition for customer retention, loyalty and service continuance intention.
Identification and understanding of the perception of customers towards electronic service
quality is essential in determining their satisfaction and ultimately service continuance
intention. It is also important for the bankers for attracting new customers along with
retaining existing customers. The level of this customer satisfaction, which is influenced by
the electronic-service quality, will play a vital role in determining the continued usage
intention towards electronic services of public and private sector banks.
2. LITERATURE REVIEW
Debasish, S.S. (2000) investigated the service quality in electronic-banking and using 21
variables with five dimensions for measuring the service quality. They applied Access,
Website interface, Trust, Attention and Credibility as the dimensions for measuring the
service quality. The researcher adopted the SERVQUAL dimensions such as Web interface
interactions, reliability, responsiveness assurance and empathy on 26 items that were
recommended by Parasuraman et al. (1985) and reduced those dimensions into to five
dimensions. The study pointed out that the service quality in e-banking is largely determined
by web elements and in order to provide a good quality of service. Therefore, banks which
offer electronic services should provide customers with effective web tools in a suitability
presented environment.
Oppewal, Harmen & Vriens, Marco. (2000) conducted a study and proposed the use of
integrated conjoint experiments to measure perceived service quality. They also demonstrated
the process of modeling the hierarchical relations between operationally defined service
attributes, strategically relevant service dimensions, and overall preference for banks or
banking products. The proposed method, which is based on hierarchical information
integration theory, avoids some of the limitations and problems of SERVQUAL and
traditional conjoint analysis. The approach is demonstrated with an application to retail banks
involving four service dimensions namely accessibility, competence, accuracy and
friendliness and tangibles and 28 attributes. It is found that the element of accuracy and
friendliness is the most important factor from customers‟ perspective for evaluation of service
quality, followed by competence, tangibles and accessibility. Based on the analysis,
K. Madavan and Dr. C. Vethirajan
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conclusion was drawn about which dimensions and attribute changes would yield the
strongest improvements in a bank‟s utility and competitive position. The paper ends with a
discussion of topics for further research.
Jun and Cai (2001) carried out a research in order to study the scale measurement for
Internet banking service quality with customers of USA. The scale included 17 dimensions
and classified into three broad categories namely customer service quality, banking service
product quality, and online systems quality. Furthermore, out of seventeen dimensions, the
key factors effect satisfaction or dissatisfaction were reliability, responsiveness, access and
accuracy. But their study employed only content analysis based on user experiences of
Internet-only banks and traditional banks offering Internet banking service and the factors
found in this study were not validated empirically.
3. STATEMENT OF THE PROBLEM
Today, financial services particularly banking services are facing with fast changes in
information technology, increased internet penetration and usage of smart phone for digital
transactions, unbalanced economic environment, intensive competition among public, private
and foreign sector banks, consolidation and merger of public sector banks, tech-savvy
customers, etc. create more challenges in the banking industry in India. Financial service
sector particularly banking sector is facing with those issues and experiences not seen in their
history. It is not surprising that in such a turbulent environment with increasingly changes,
banking organizations are enforced to change their reactions to the market in order to sustain
and grow. Presently, electronic banking is emerged as a competitive arena for future banking
services that makes the banks to provide quality of services with more features and lower
costs than conventional banking to their customers.
The significant theoretical contribution of this research is to identify and analyse the
electronic service quality aspects and their influence on the customer satisfaction and service
continuance intention of customers towards electronic services provided by the public and
private sector banks in Indian banking industry by mounting the prior literature in electronic
service quality of banking. The practical contributions of this research would assist the public
and private sector banks to improve their electronic banking service quality, which will
increase the level of satisfaction and service continuance intention towards electronic banking
services. The quality attributes identified from this research can be used to improve the
electronic service quality of banking that leads to more customer satisfaction and retention.
This research is, therefore, important to provide the solutions with respect to electronic
service quality issues, increase customer satisfaction and service continuance intention of
customers of public and private sector banks in Puducherry region.
4. NEED FOR THE STUDY
A sound and effective banking system is the backbone of an economy of the country. The
banks in India provide traditional and modern services, which include electronic banking to
their customers. Customer is important for any services particularly banking services.
Measuring service quality electronic banking services. The research also helps banking
institutions to know whether the existing electronic services offered by them really satisfying
the needs of their customers or not. Through responses taken by 478 customers during a
period of one year and highlighting the key areas which require some attention on the part of
the banking industry in India with respect to electronic service quality. Particularly electronic
service quality in the service sector particularly in the Indian banking sector is more difficult
than measuring the quality of manufactured goods. The concept of service quality and
customer satisfaction is inter-related with each other in any service industry including banking.
Customer Satisfaction on E-Banking Services of Public and Private Sector Banks in Puducherry
Region - An Empirical Analysis
http://www.iaeme.com/IJM/index.asp 652 [email protected]
Furthermore, satisfaction of customer depends upon service quality of bank and electronic
service quality is increasingly offered as a strategy by bankers to position themselves more
effectively in the service market place and attain customer satisfaction and retention.
Indian Banking industry has restructured and modernized by automation with the
advancement of information and communication technology since last few decades,
particularly after implementation of first phased plan (1985) of bank computerization in India
and various plans and programmes implemented by the RBI. Presently, the banks in India
along with branches are almost computerized and accustomed with Core Banking Solution
(CBS). Even, commercial banks working in rural areas also providing most of electronic
banking services like ATM, CDM, Electronic Funds transfer (NEFT, RTGS, etc.), Debit and
Credit cards, Net banking, Mobile banking, etc.
Measuring service quality of banks with respect to electronic services is an important
strategic tool for survival and long-term success of the banks because providing high quality
service increases customer satisfaction, retention and building loyalty. Investigation of
electronic service quality aspects and their relationship with customer satisfaction and
retention is being increasingly drawn attention by bankers as well as researchers. Puducherry
is one of the important union territories situated adjacent of Tamil Nadu state which has
different walks of people. It is also known as “Little France”. Even though, there are plenty of
researches conducted on the service quality of banks, none of them were conducted in
Puducherry. Hence, there is a great need to examine the impact of electronic service quality
on customer satisfaction and service continuance intention of customers with respect to public
and private sector banks in Puducherry region.
5. SCOPE OF THE STUDY
The Scope of research is an overall outline of what the study will cover. The central point of
the research is to analyze the level of awareness and usage pattern of electronic banking
services, customers‟ perception on various aspects of electronic banking service quality,
customer satisfaction and continuous service usage intention towards electronic banking
services of public and private sector banks in Puducherry region. The scope of the study has
been confined to „Electronic Service Quality‟ (e-service quality) and not the traditional
service quality of public and private sector banks. The scope of research is limited to the
customers‟ perception, satisfaction and continuous service usage intention towards selected
public and private sector banks (five banks from each category and five branches from each
bank) only. The research is also limited to the customers of public and private sector banks
which are situated in Puducherry region. The research has taken Physical Aspects, Efficiency,
Reliability, Security & Privacy, Responsiveness and Complaints handling as the dimensions
of electronic service quality for the analysis.
This research is also conducted to suggest some measures to improve the present
electronic services which will in turn contribute to the overall improvement in the
performance of the banking industry not only in Puducherry region but also in the other parts
of India.
6. OBJECTIVES OF THE STUDY
To examine the customer satisfaction and perception on the Electronic Banking
Services of Public Sector and Private Sector Banks in Puducherry Region.
To analyze the inter-relationships among the various dimensions of Electronic Service
Quality of Public and Private Sector Banks
K. Madavan and Dr. C. Vethirajan
http://www.iaeme.com/IJM/index.asp 653 [email protected]
To find out the impact on Customer Satisfaction on the Electronic Banking Services of
Public and Private Sector Banks
7. HYPOTHESES OF THE STUDY
H01: There is no significant difference among the demographic variables of the respondents
with respect to the Continuous Service Usage Intention towards the Public and Private Sector
Banks.
H02: There are no significant inter-relationships among the various dimensions of Electronic
Service Quality of Public and Private Sector Banks.
H03: Various dimensions of Electronic Service Quality have no significant impact on
Customer Satisfaction on the Electronic Banking Services of Public and Private Sector Banks.
8. RESEARCH METHODOLOGY
The purpose of the present research is to test the hypothesis and therefore the researcher
selects exploratory research design or hypothesis-testing research design. The aim of the
exploratory research is merely to explore the research questions and does not intend to offer
final and conclusive solutions to existing problems. This type of research is usually conducted
to study a problem that has not been clearly explored yet but helps the researcher to have a
better understanding of the problem. Exploratory research is one of the most suitable research
designs specifically used in service marketing research like banking, insurance, etc.
The exploratory research design is known as formulative research design. The main
objective of using such a research design is for formulating a research problem (impact of
service quality on customer satisfaction and continuous service usage intention towards
electronic banking services) for an in-depth or more precise investigation, or for developing a
working hypothesis from an operational aspect. Since the present research is based on the
hypothesis testing of causal relationships between independent variable (Service Quality
dimensions) and dependent variable (Customer Satisfaction and Continuance Service Usage
Intention), the researcher chooses the exploratory research design and apply the same.
In service marketing research (like the present study), analyzing the perception or
satisfaction of customers/consumers is very important and these are based on the qualitative in
nature. In order to analyze the qualitative aspects statistically and validate the hypothesis, it is
necessary to convert the qualitative aspects into quantitative by using Likert scale. The
present research is also conducted to analyse the customers‟ perception on the various
dimensions of electronic service quality and its impact on Customer Satisfaction and
Continuous Service Usage Intention towards Electronic Banking Services of Public and
Private Sector Banks statistically and test the hypothesis. Therefore, the researcher employs
the mixed research approach by merging of both the qualitative and quantitative approaches in
a productive way in the present research.
8.1. Sample Size
Sample size is the number of respondents included in a research. The Sample Size of the
present study is 478. The primary data is gathered from the Customers who are using
electronic banking services of public and private sector banks in Puducherry region and 478
samples are finalized.
8.2. Sampling Technique
The present research paper considers and applied Non-Probability Sampling Method since the
exact population of the research (Customers who are using electronic banking services of
Customer Satisfaction on E-Banking Services of Public and Private Sector Banks in Puducherry
Region - An Empirical Analysis
http://www.iaeme.com/IJM/index.asp 654 [email protected]
public and private sector banks in Puducherry region) is unknown. Out of various Non-
Probability Sampling techniques, the researcher selects and employs purposive Sampling
technique in this research work.
8.3. Questionnaire Design and Development
Questionnaire is an important part of any primary data-based research. Therefore,
questionnaire design is the crucial part of survey research because validity and credibility of
the data being collected during this research depend on the design and structure of the
questionnaire. The present research is based on the primary data collection and therefore, a
well-structured questionnaire is prepared in order to address the research objectives and goal.
In this research, information regarding the Perception of Customers on the various
dimensions of Electronic Service Quality and their impact on Customer Satisfaction and how
these perception and satisfaction on electronic service quality leads to Continuous Service
Usage Intention of customers towards banking services of public and private sector banks in
Puducherry region are translated into simple questions in order to get their views on the said
concepts of the research. The questions must be long enough to elicit the information that was
required but short enough to encourage an optimum response rate. Based on the above, a
structured questionnaire was developed, covering as many as possible the items that might
point to achieving the objectives of the research.
After the preparation of the questionnaire, it has to be pre-tested to identify any
ambiguous questions or any respondent difficulties in understanding the questionnaire. A
combination of different effort, i.e., discussion with expert panel in service marketing and
banking sector, interview, a planned field survey, studying the existing review of literature
related to the topic and searching and gathering the information from the various websites on
the internet were carried out to obtain a robust input for the design and development of the
questionnaire.
9. RESULTS AND DISCUSSION
Table 1 Sample Collection – Sector & Bank-Wise
S. NO. NAME OF THE BANK NO. OF RESPONDENTS
Nos. (%)
PUBLIC SECT OR BANKS
1. State Bank of India 58 22.48
2. Punjab National Bank 52 20.16
3. Canara Bank 56 21.71
4. Bank of Baroda 48 18.60
5. Indian Bank 44 17.05
TOTAL 258 100.00
PRIVATE SECTOR BANKS
6. ICICI Bank 55 25.00
7. HDFC Bank 49 22.27
8. Axis Bank 44 20.00
9. City Union Bank 39 17.73
10. Karur Vysya Bank 33 15.00
TOTAL 220 100.00
GRAND TOTAL 478 100
Source: Compiled from Primary Data
K. Madavan and Dr. C. Vethirajan
http://www.iaeme.com/IJM/index.asp 655 [email protected]
It is observed from the table 1 shows that the total number of customers were used in e-
banking services in Puducherry region is 478 out of which the public sector banks is 258 and
where as the total number of customers were used in private sector banks is 220. It is
informed that out of 258 customers utilized e- banking services, only 58 State Bank of India
customers (22.48%) used in e- banking services. 55 respondents were used in e- banking
services of ICICI banks( 25%). Whereas15% KVB customers were used in e- banking
services in Puducherry region.
Table 2 Customers‟ Perception on Electronic Service Quality of Public and Private Sector Banks
VARIABLES N Mean SD
The website of the bank is well-organized/arranged and has user-friendly interface. 478 3.53 .957
The layout of the web-site of bank is visually appealing and attractive. 478 3.58 .969
The website of the bank provides sufficient and necessary information. 478 3.68 .909
Website of the bank is designed according to the need of the customer. 478 3.68 .955
Bank uses advanced technology in order to serve its customers better. 478 3.65 .979
PHYSICAL ASPECTS 478 18.12 4.086
Transfer of funds and other transactions are through electronic banking is faster than
traditional banking system. 478 3.75 .873
Electronic Banking provides greater flexibility and faster than traditional banking services. 478 3.78 .889
Electronic banking provides more punctuality, transparency and accountability. 478 3.78 .866
I can bank anytime anywhere, check my balance and access my bank statements. 478 3.87 .868
I can easily interact with my bank; express my opinions and grievances without visiting the
branch. 478 3.75 .934
EFFICIENCY 478 18.94 3.770
Electronic banking provides its services at the time it promises to do so. 478 3.68 .914
Electronic banking transactions are accurate and error-free. 478 3.88 .887
Electronic banking services are more dependable. 478 3.58 .918
The website of the bank is more trustworthy. 478 3.66 .903
Electronic banking ensures the ability to fulfill the requirement of the customers. 478 3.71 .898
RELIABILITY 478 18.51 3.932
Electronic Banking Services provides enhanced level of security and limited possibility of
loss. 478 3.11 1.055
Electronic Banking protects the customer‟s personal and financial information and not
shared with other websites. 478 3.12 1.059
Electronic Banking gives high priority for the privacy of the customers. 478 3.00 .924
Electronic Banking is just as secure as conventional banking. 478 3.07 .987
Electronic Banking provides the latest encryption technology to prevent unauthorized
intrusion. 478 3.37 1.143
SECURITY AND PRIVACY 478 15.67 3.371
Electronic banking gives prompt responses to the customers‟ requests by e-mail or other
ways. 478 3.57 .953
The responses of Electronic banking are accurate, appropriate and relevant. 478 3.67 .917
Electronic banking Keeps its customers informed about when services will be performed. 478 3.68 .944
Bank‟s website allows information to be readily accessible. 478 3.74 .903
Electronic banking is readily available to help the customers. 478 3.73 .970
RESPONSIVENESS 478 18.39 4.155
The Electronic Banking of this bank has the ability to guide customer to resolve problems. 478 3.17 .978
The website of the bank shows sincere interest in resolving any transaction related
problems. 478 3.14 .902
Electronic banking quickly resolves problems related to online transactions. 478 3.24 .878
Electronic banking provides effective complaints and grievances procedures. 478 3.33 .915
Customer care/Help Desk/Call Centers of Electronic banking takes the complaints quickly
and solves the problems fastly. 478 3.60 1.019
COMPLAINTS HANDLING 478 16.47 3.782
PERCEPTION ON ELECTRONIC SERVICE QUALITY 478 106.09 16.027
Source: Compiled from primary data
Customer Satisfaction on E-Banking Services of Public and Private Sector Banks in Puducherry
Region - An Empirical Analysis
http://www.iaeme.com/IJM/index.asp 656 [email protected]
From the table 2, it is found that the Customers‟ Perception on the various dimensions of
Electronic Service Quality is higher in case of the variables – “Efficiency” (M = 18.94) and
“Reliability” (M = 18.51) when compared with others. It is found that the Customers‟
Perception on the various dimensions of Electronic Service Quality is lesser in case of the
variables – “Security and Privacy” (M = 15.67) and “Complaints Handling” (M = 16.47)
when compared with others. It is also inferred that the Customers‟ Perception on the various
dimensions of Electronic Service Quality is above the average level since majority of the
Mean value of the variables are above 3.00 (60%) out of 5.
H01: There is no significant difference between the Male and Female customers with respect
to the Perception on Electronic Service Quality of Public and Private Sector Banks.
Table 3 Gender – Perception on Electronic Service Quality of Banks
Source: Compiled from primary data ** Significance at 1%Level,* Significance at 5 %Level
It is seen from the table 3 shown that, In order to compare the significant difference
between the Male and Female Customers with respect to the Perception on Electronic Service
Quality of Public and Private Sector Banks; the Independent-samples t-test was used. Since
the P values are lesser than 1% and 5% level of significant value in 5 out of 6 aspects in case
of the Customers‟ Perception on Electronic Service Quality of Public and Private Sector
Banks, i.e. Physical Aspects (0.000), Efficiency (0.000), Reliability (0.000), Responsiveness
(0.000) and complaints Handling (0.025) and also in the Customers‟ Perception on the
Electronic Service Quality of Banks Score (0.000), the Null Hypotheses are rejected. The Null
Hypothesis is accepted in only one case, Security and Privacy, since the P (0.052) value is
greater than 5% level of significant value.Out of six aspects relating to the Customers‟
Perception on the Electronic Service Quality of Public and Private Sector Banks, Male
Customers have perceived more on the “Efficiency” (M = 19.66) than other aspects of the
Electronic Service Quality of Banks. Male Customers have perceived less on the “Security
and Privacy” (M = 15.88) than other aspects of Electronic Service Quality of Public and
Private Sector Banks.Similarly, out of six aspects relating to the Customers‟ Perception on the
Electronic Service Quality of Banks, Female customers have also perceived more on the
“Efficiency” (M = 17.52) than other aspects of the Electronic Service Quality of Banks.
Female Customers have perceived less on the “Security and Privacy” (M = 15.25) than other
aspects of the Electronic Service Quality of Public and Private Sector Banks.Based on the
mean score of the Customers‟ Perception on the Electronic Service Quality of Banks, it is
inferred that the mean score of Male Customers (M = 108.96) is more than the Female
Customers (M = 100.45). This indicates that Male Customers have perceived more on the
various aspects of Electronic Service Quality of Public and Private Sector Banks than Female
Customers. Therefore, it is concluded that there is a statistically significant difference
VARIABLES
GENDER
t - value
p –
value Male Female
N Mean SD N Mean SD
Physical Aspects 317 18.60 4.116 161 17.17 3.867 3.734 0.000**
Efficiency 317 19.66 3.483 161 17.52 3.916 5.866 0.000**
Reliability 317 19.15 3.777 161 17.25 3.939 5.045 0.000**
Security
and Privacy 317 15.88 3.414 161 15.25 3.256 1.952 0.052
Responsiveness 317 18.93 4.083 161 17.34 4.106 4.014 0.000**
Complaints Handling 317 16.75 3.588 161 15.93 4.096 2.153 0.025*
PERCEPTION ON
ELECTRONIC
SERVICE QUALITY
317 108.96 14.496 161 100.45 17.391 5.335 0.000**
K. Madavan and Dr. C. Vethirajan
http://www.iaeme.com/IJM/index.asp 657 [email protected]
between Male and Female Customers with respect to the Perception on Electronic Service
Quality of Public and Private Sector Banks.
H02: There is no significant difference between Customers of Public Sector and Private Sector
Banks with respect to the Perception on Electronic Service Quality of Banks.
Table 4 Type of Bank – Perception on Electronic Service Quality of Banks
VARIABLES
TYPE OF BANK
t -
value
p –
value Public Sector Bank Private Sector Bank
N Mean SD N Mean SD
Physical Aspects 285 16.73 3.795 193 20.16 3.628 9.931 0.000**
Efficiency 285 17.82 3.626 193 20.59 3.358 8.549 0.000**
Reliability 285 17.22 3.663 193 20.40 3.539 9.487 0.000**
Security and Privacy 285 15.54 3.363 193 15.85 3.383 0.989 0.323
Responsiveness 285 17.10 4.008 193 20.30 3.605 9.106 0.000**
Complaints
Handling 285 16.21 4.032 193 16.86 3.353 1.903 0.058
PERCEPTION
ON
ELECTRONIC
SERVICE
QUALITY
285 100.64 15.768 193 114.16 12.681 10.353 0.000**
Source: Compiled from primary data ** Significance at 1%, Significance at 5 %
From Table 4 shows that to compare the significant difference between Customers of
Public Sector and Private Sector Banks with respect to the Perception on Electronic Service
Quality of Banks, the Independent-samples t-test was applied in the P values are lesser than
1% level of significant value in 4 out of 6 aspects in the Customers‟ Perception on Electronic
Service Quality of Banks, i.e. Physical Aspects (0.000), Efficiency (0.000), Reliability
(0.000), Responsiveness (0.000) and also in the Customers‟ Perception on the Electronic
Service Quality of Banks Score (0.000), the Null Hypotheses are rejected. The Null
Hypotheses are accepted in remaining 2 cases, i.e. Security and Privacy (0.323) and
Complaints Handling (0.058), as the P values are greater than 5% level of significant value.
Out of six aspects relating to the Customers‟ Perception on the Electronic Service Quality
of Banks, Customers of Public Sector Banks have perceived more on the “Efficiency” (M =
17.82) than other aspects of the Electronic Service Quality of Banks. Customers of Public
Sector Banks have perceived less on the “Security and Privacy” (M = 15.54) than other
aspects of Electronic Service Quality of Banks.Similarly, out of six aspects relating to the
Customers‟ Perception on the Electronic Service Quality of Banks, Customers of Private
Sector Banks have perceived more on the “Efficiency” (M = 20.59) than other aspects of the
Electronic Service Quality of Banks. Customers of Private Sector Banks have perceived less
on the “Security and Privacy” (M = 15.85) than other aspects of Electronic Service Quality of
Banks.Based on the mean score of the Customers‟ Perception on the Electronic Service
Quality of Banks, it is inferred that the mean score of Customers of Private Sector Banks (M
= 114.16) is more than the Customers of Public Sector Banks (M = 100.64). This indicates
that Customers of Private Sector Banks have perceived more on the various aspects of
Electronic Service Quality of Banks than Customers of Public Sector Banks. Therefore, it is
concluded that there is a statistically significant difference between Customers of Public
Sector and Customers of Private Sector Banks with respect to the Perception on Electronic
Service Quality of Banks.
Customer Satisfaction on E-Banking Services of Public and Private Sector Banks in Puducherry
Region - An Empirical Analysis
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H03 :There is no significant difference among the Educational Qualification of the Customers
with respect to the Perception on the Electronic Banking Services of Public and Private
Sector Banks.
From table 5 shows that to explore the significant difference among the Educational
Qualification of the Customers with respect to the Perception on the Electronic Banking
Services of Public and Private Sector Banks, the One-way between-groups analysis of
variance (ANOVA) was employed.
Table 5 Educational Qualification - Perception on Electronic Service Quality Of Banks
VARIABLE
EDUCATIONAL QUALIFICATION
F –
value
p –
value
School Level /
Diploma
(155)
UG / PG
(286)
Professional
(37)
Physical Aspects 18.08 18.15 18.03
0.024 0.977 3.960 4.049 4.936
Efficiency 18.59 19.00 19.95
2.038 0.131 3.727 3.750 3.993
Reliability 18.28 18.63 18.51
0.402 0.669 3.612 4.025 4.519
Security and Privacy 15.63 15.69 15.65
0.017 0.983 3.127 3.473 3.646
Responsiveness 18.35 18.41 18.41
0.12 0.988 3.713 4.270 5.041
Complaints Handling 16.46 16.43 16.86
0.217 0.805 3.797 3.767 3.917
PERCEPTION ON
ELECTRONIC SERVICE
QUALITY
105.39 106.31 107.41
0.299 0.742 15.332 15.934 19.581
Source: Compiled from primary data Significance at 5% Level
No. of Bank Customers are shown in brackets
Since the P values are greater than 5% level of significant value in case of Physical
Aspects (0.977), Efficiency (0.131), Reliability (0.669), Security and Privacy (0.983),
Responsiveness (0.988) and complaints Handling (0.805) and also in the Customers‟
Perception on the Electronic Service Quality of Public and Private Sector Banks Score
(0.742), the Null Hypotheses are accepted. Apart from not reaching statistical significance,
the actual difference in the mean score among the Perception on Electronic Service Quality
groups is also small (M = 105.39 to 107.41). The Mean score of the Perception on the various
aspects of the Electronic Service Quality in case of Educational Qualification is more or less
same. Hence, it is inferred that the Customers who belong to all educational qualification have
same level of perception on the various aspects of the Electronic Service Quality of Public
and Private Sector Banks than others. Hence, there is no significant difference among the
Educational Qualification of the Customers with respect to the Perception on the Electronic
Banking Services of Public and Private Sector Banks.
H04 : There is no significant difference among the Period of Usage of Electronic Banking
Services of the Bank with respect to the Perception on Electronic Service Quality in both
Public and Private Sector Banks.
From table 6 it shows that to explore the significant difference among the Period of Usage
of Electronic Banking Services of the Bank with respect to the Perception on Electronic
Service Quality in both Public and Private Sector Banks, the One-way between-groups
analysis of variance (ANOVA) was employed.
K. Madavan and Dr. C. Vethirajan
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Table 6 Period of Usage of Electronic Banking Services of the Bank - Perception on Electronic
Service Quality of Banks
VARIABLE
PERIOD OF USAGE OF ELECTRONIC
BANKING SERVICES OF THE BANK
F - value
p –
value Upto one
Year
(73)
1 – 3
Years
(130)
3 – 6
Years
(125)
Above 6
Years
(150)
Physical Aspects 17.38 18.65 18.16 17.97
1.583 0.193 4.815 4.080 3.794 3.915
Efficiency 18.36 19.80 18.66 18.71
3.315 0.020* 4.382 3.732 3.641 3.490
Reliability 17.44 19.22 18.44 18.47
3.268 0.021* 4.781 3.977 3.809 3.417
Security
and Privacy
14.74 15.42 15.78 16.25 3.671 0.012*
3.582 3.537 3.227 3.141
Responsiveness 16.86 19.12 18.53 18.39
4.792 0.003** 5.319 3.698 3.807 4.010
Complaints Handling 15.55 16.82 16.49 16.62
1.898 0.129 4.384 3.574 3.730 3.650
PERCEPTION ON
ELECTRONIC
SERVICE QUALITY
100.33 109.02 106.06 106.40
4.715 0.003** 19.623 14.683 15.553 14.981
Source: Compiled from primary data * Significance at 5%Level ** Significance at 1%Level
Note: No. of respondents are shown in brackets
Since the P values are lesser than 1% and 5% level of significant value in 4 out of 6
aspects in the Customers‟ Perception on Electronic Service Quality, i.e. Efficiency (0.020),
Reliability (0.021), Security and Privacy (0.012) and Responsiveness (0.003) and also in the
Customers‟ Perception on Electronic Service Quality of Banks Score (0.003), the Null
Hypotheses are rejected. The Null Hypotheses are accepted in remaining 2 cases, Physical
Aspects (0.193) and Complaints Handling (0.129) as the P values are greater than 5% level of
significant value.
In addition to achieving statistical significance, the real variation in the mean score among
the Usage of Electronic Banking Services of the Banks groups is also large (M = 100.33 to
109.02). The Mean score of the Customers‟ Perception on the various aspects of Electronic
Service Quality, in case of the Period of Usage of Electronic Service Quality for “1 to 3
Years” Group (M = 109.02) is more than other groups. Therefore, it is inferred that the
Customers who are using Electronic Banking Services for 1 to 3 years, have more perception
on the various aspects of Electronic Banking Services than other groups. Therefore, there is a
significant difference among the Period of Usage of Electronic Banking Services of the Bank
with respect to the Perception on Electronic Service Quality in both Public and Private Sector
Banks.
H05 : There are no significant inter-relationships among the various aspects of Electronic
Banking Services of public and private sector banks.
From table 7 shows that a Pearson product-moment correlation was run to determine the
inter-relationships among the various aspects of Electronic Banking Services of public and
private sector banks.
Customer Satisfaction on E-Banking Services of Public and Private Sector Banks in Puducherry
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Table 7 Inter-Relationships Among The Various Aspects Of Electronic Banking Services
VARIABLES N ‘r’
VALUE
P –
VALUE RELATIONSHIP
REMARKS
SIGNIFICANT RESULT
Physical Aspects – Efficiency 478 0.605** 0.000 Positive Significant REJECTED
Physical Aspects – Reliability
478 0.678** 0.000 Positive Significant REJECTED
Physical Aspects – Security and
Privacy
478
0.107* 0.019 Positive Significant REJECTED
Physical Aspects –
Responsiveness
478 0.780** 0.000 Positive Significant REJECTED
Physical Aspects – Complaints
Handling
478 0.116* 0.011 Positive Significant REJECTED
Efficiency – Reliability
478 0.690** 0.000 Positive Significant REJECTED
Efficiency – Security and
Privacy
478 0.022 0.632 Positive Insignificant ACCEPTED
Efficiency – Responsiveness
478 0.678** 0.000 Positive Significant REJECTED
Efficiency – Complaints
Handling
478
0.243** 0.000 Positive Significant REJECTED
Reliability – Security and
Privacy
478 0.045 0.324 Positive Insignificant ACCEPTED
Reliability – Responsiveness
478 0.785** 0.000 Positive Significant REJECTED
Reliability – Complaints
Handling
478
0.253** 0.000 Positive Significant REJECTED
Security and Privacy –
Responsiveness
478 0.088 0.054 Positive Insignificant ACCEPTED
Security
and Privacy – Complaints
Handling
478 0.049 0.285 Positive Insignificant ACCEPTED
Responsiveness – Complaints
Handling
478
0.216** 0.000 Positive Significant REJECTED
Source: Compiled from primary data **. Correlation is significant at the 0.01 level (2-tailed).
*. Correlation is significant at the 0.05 level (2-tailed).
As the P values are lesser than Sig. Value (0.01) in 11 out of 15 cases, the Null
Hypotheses are rejected. The Null Hypotheses are accepted in 4 cases, since the P values are
greater than Sig. Value (0.05) there are high positive correlations among the Perceptions on
the various aspects of Electronic Service Quality with respect to the Banking Services in
Public and Private Sector Banks. The relationships between them are also highly significant in
these cases.
Out of six aspects of Electronic Service Quality with respect to Banking Services,
Reliability has more relationship (r = 0.785) with Responsiveness than other aspects. Physical
Aspects has also more relationship (r = 0.780) with Responsiveness than other aspects. Out of
Out of six aspects of Electronic Service Quality with respect to Banking Services, Physical
Aspects has less relationship with Security and Privacy (r = 0.107) and Physical Aspects has
less relationship with Complaints Handling (r = 116) when compared with other aspects. The
above correlation analysis indicates that there are significant inter-relationships among the
various aspects of Electronic Banking Services of public and private sector banks.
K. Madavan and Dr. C. Vethirajan
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10. FINDINGS OF THE STUDY
It is found that there is a significant difference among the demographic variables of
the customers with respect to the Perception on the various dimensions of Electronic
Service Quality of Public and Private Sector Banks. It is found that Male Customers
have perceived more on the various aspects of Electronic Service Quality of Public
and Private Sector Banks than Female Customers. The Customers of Private Sector
Banks have perceived more on the various aspects of Electronic Service Quality than
the customers of Public Sector Banks.
Family Income of the customers (Rs.50,001 - Rs.75,000), Occupation of the customers
(Business/Profession) and Period of Usage of Electronic Banking Services of the Bank
(1 – 3 Years) have significant influence on the various aspects of Electronic Service
Quality of Public and Private Sector Banks. The customers belong to these
demographic variables have more perception on the various aspects of Electronic
Service Quality of Public and Private Sector Banks than others.
However, marital statuses, educational qualification of the customers, Period of
Customer of the bank and Age of the customer have no significant influence on the
Perception on the various aspects of Electronic Service Quality of Public and Private
Sector Banks.
It is also found that there are high positive and significant correlations among the
Perceptions on the various aspects of Electronic Service Quality with respect to the
Banking Services in Public and Private Sector Banks. Out of six aspects of Electronic
Service Quality with respect to Banking Services, Reliability (r = 0.785) and Physical
Aspects (r = 0.780) have more relationship with Responsiveness than other aspects.
Physical Aspects has less relationship with Security and Privacy (r = 0.107) and
Complaints Handling (r = 116) when compared with other aspects.
11. MANAGERIAL IMPLICATIONS OF THE STUDY
The research findings of the study have several practical implications. This study showed that
Bankers should continue to monitor how their customers perceive and evaluate their service
quality with different factors and dimensions. The results of this research will permit the
management of public and private sector banks to better understand their customers and will
help the management to adopt and implement effective service marketing strategies for the
same.
The banking service market has a great potential for youth segment as the more than 50%
of the population of India is youth and working population. These youth population is living
in the age of electronic technology. The research also indicates that the demographic variables
have strong influence on the customers‟ perception, satisfaction and continuous service usage
intention towards electronic banking services. Therefore, if the banks consider the
demographic features of these population carefully then it can be easily identified the factors
that attracting and retaining them as customers for the electronic banking services.
The research indicates that the consistent and efficient electronic service quality of the
Public and Private Sector Banks is the best influencing factor for the customers‟ satisfaction
and continuous service usage intention towards electronic banking services. By focusing on
various factors identified in this research, the management of public and private sector banks
can understand their position and identify their strengths and weaknesses and formulate
appropriate policies to improve their service performance in a better way. It will help to
convert their potential customers into active customers.
Customer Satisfaction on E-Banking Services of Public and Private Sector Banks in Puducherry
Region - An Empirical Analysis
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12. LIMITATIONS OF THE STUDY
The outcome of this research has given valuable feedbacks to researchers. However, these
outcomes were accompanied with some limitations. The biggest limitation of the research was
to get the responses and information from the respondents (customers who using electronic
banking services of public and private sector banks). Respondents were not wholehearted to
take part and convincing them to share the information was not an easy task due to their hectic
work schedule.
Because of the limited availability of time and financial resources, the survey of the
research is of limited scale and scope, such that the survey results may not be fully
representative of the views of the customers of banks (478 samples) studied. The results of the
present study are limited to the responses of customers of five public sector banks and five
private sector banks in Puducherry region. The present research has depended largely on
quantitative methodology of data collection (conversion of qualitative methodology into
quantitative methodology by using Likert scale) and is therefore restrictive. The
methodological assumption is that all respondents will have the same assumption and opinion
to the variables used in the study may not be true in practice. Therefore, the effects of these
variables may not be common to all respondents (customers of electronic banking services)
that may influence the manner in which they provide the responses to the questions.
It is also essential to note that customers‟ perceptions, satisfaction and service usage
intention towards electronic banking services may vary from time to time. This research has
gathered the data during the year 2019. Therefore, similar research on some other period of
time, in same geographical area may give some different result. Lastly, these limitations may
decrease the ability of generalizing the results of this research to other industries‟ settings.
Therefore, the conceptual and methodology limitations of this research need to be considered
when designing future research and these limitations are acknowledged and provide possible
avenues for further research.
13. SCOPE FOR FUTURE RESEARCH
The present efforts are directed to analyze the customers‟ service usage behaviour towards
electronic banking services of public and private sector banks. This is an analytical research
which would be a useful contribution. However, for arriving at any generalization, it is highly
desirable to undertake more such analytical studies. The scope of research was restricted to
the customers‟ usage behaviour with respect to the selected public and private sector banks in
Puducherry region only. Similar research can be also carried out in the other parts of India for
comparison purposes. Also a comparative study can be conducted on service quality of Indian
and Foreign Banks in the same region or other parts of India.
14. CONCLUSION
It is found from the present research paper that five out of six aspects of Electronic Service
Quality of Banks have influence on Customers‟ Satisfaction on E-Banking Services. Out of
six aspects of Electronic Service Quality of Banks, “Efficiency” has significant and stronger
influence on Customers‟ Satisfaction on E-Banking Services and “Complaints Handling” has
significant but lesser influence on Customers‟ Satisfaction on E-Banking Services than others.
Out of six aspects of Electronic Service Quality of Banks, “Security & Privacy” aspect does
not contribute to Customers‟ Satisfaction on E-Banking Services significantly. Out of two
aspects of Electronic Service Quality of Banks, “Responsiveness” contributes more to the
Continuous Service Usage Intention directly than Efficiency. The Customers‟ Satisfaction on
E-Banking Services contributes strongly to the Continuous Service Usage Intention directly.
There are strong inter-relationships among the various aspects of Electronic Service Quality
K. Madavan and Dr. C. Vethirajan
http://www.iaeme.com/IJM/index.asp 663 [email protected]
of Banks. Out of six aspects of Electronic Service Quality of Banks, Reliability aspect has
more relationship with Responsiveness aspect and Efficiency aspect has lesser relationship
with Security and Privacy aspect than others. The result designate that e-banking service is the
only solution for Indian banks to admittance global market. This resulted in high customer
satisfaction and make use of services.
ACKNOWLEDGEMENT The Author K. Madavan, Ph.D Scholar, Department of Corporate Secretaryship, School of
Management, Alagappa University, Karaikudi, TN, India. and the Co-Author
Dr. C. Vethirajan, Professor and Head, Department of Corporate Secretaryship, School of
Management, Alagappa University, Karaikudi, TamilNadu, India has greatly acknowledged
under RUSA Phase 2.0 Scheme has acknowledged the same.
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