RESEARCH METHOLODY

Research is systematic, gathering, reporting and analyzing of data about problems relating with
the marketing of goods and services and implementing it to overcome the problem. Business
research is a systematic inquiry that gives information to take business decisions.
PROBLEM STATEMENT
The study basically aimed at examining the consumer behavior of individuals towards Internet
Banking. Specifically, the perception and their experience with the Internet Banking was
examined and the factors that motivate them to use this service. Besides, we want to know the
preference, attitude, perception of customers towards Internet Banking.
Internet banking is used widely by masses, and has numerous benefits to offer. Nowadays, all
banks provide online banking facility to their customers as an added advantage. Internet banking
enables people to carry out most of their banking transactions using a safe website, which is
operated by their respective banks. It provides many features and functions to their customers,
and enables them to view their account balance, transfer money from their account to another
account (be it in their respective bank or any other bank), view their account summary, etc. So
our research problem statement is given as Customer Behavior Towards Internet Banking.
REVIEW OF LITERATURE
Small-car concept
B S Hundal and Saurabh Grover made an attempt to study the consumer behavior towards
Tata Nano after its launch under the research topic, Consumer Behavior Towards Tata Nano:
A Perceptual Study. The research article is disclosed in, The Iup (Icfai University Press)
Journal Of Management Research,Vol. IX,No. 6, Feb 2010. Tata Nano was one of the longest
awaited car in INDIA, launched on March 23, 2009, Priced at Rs. 1,30,000 approximately. It is
perhaps the smallest and the first car of its kind. Also known as peoples car, its an engineering
marvel to come out in INDIA in terms of cost efficiency, fuel and space efficiency.
So an attempt was made to study the consumer behavior and also their perception towards the car
in the post-launch period. Factors that motivate buyers to purchase this small car were also
studied.

Customers Perception of E-Banking
P Ambiga Devi and Malarvizhi V conducted a research on about 50 customers from
Coimbatore city through interview technique, in their research on Customers Perception of
E-Banking using factor analysis. The research article is disclosed in, The Iup (Icfai
University Press) Journal Of Management Research, Vol. IX, No. 6, Oct 2010.
The objective of study was to find out the customers awareness, perception and expectations on
E-banking and find out the factors that encourage or discourage the customers in using these
services. The 16 variables were reduced to 6 factors using factor analysis.


RESEARCH QUESTIONS
When the above given problem is broken down into number of questions we get research
questions. The basic research questions for this study are:
What is the customers attitude towards Internet Banking?
What is his perception about the service?
Will he prefer Internet Banking or the other manual banking mode?
Is he satisfied and comfortable with the service?
Is he dissatisfied and uncomfortable with the service?
What and where is/are the point(s) of dissatisfaction?

RESEARCH OBJECTIVES
The prima-facie objectives of this research project are:
To know the customer behavior towards Internet Banking in order to remove the flaws
from the service, improve the service performance, overcome the weakness and hence
enhance customer satisfaction.
To examine their perception, experience and attitude with and towards the Internet
Banking.
To study and determine the various factors that affect and/or motivate them to use this
service.

LIST OF INFORMATION NEEDED
The demographic profile of customers which includes- Age, Gender, Income, Occupation
and Educational Background.
The level of satisfaction of the customers.
The features of service preferred by the customers.
The way they perceive this service.
The attitude of customers towards the service, as inferred from their recommendations to
others




VARIABLES
CATEGORICAL VARIABLES
Nominal
Gender
Occupation
Age
Occupation
Ordinal
Income
CONTINUOUS VARIABLES
Ratio
Attitude will be measured by customer loyalty (frequency of usage), recommendations and
preference for internet banking over the other modes.
Perception will be measured by the purpose for which they use internet banking facilities,
factors that motivate them to use this service.
Satisfaction will be measured by the 18 statements.


R RE ES SE EA AR RC CH H D DE ES SI IG GN N
DESCRIPTIVE RESEARCH WITH COMMUNICATION METHOD
For this research we will use the Descriptive Research Design, as name suggests; the main
objective will be to describe something, the consumer behavior towards the internet banking
services. At this stage the researchers build some idea about sampling methods.
Descriptive Research helps to describe the characteristics/profiles of a certain group, test
hypothesis generated by exploratory research, make predictions based on the relationship
between selected variables.
1. DATA COLLECTION
PRIMARY DATA
Primary data is collected from 400 sample respondents living in a single location Surat city, by
personal interview (communication) administered by interviewers at the place of customers as
well as at intercepts like on streets as well as malls and outside banks as well.
PERSONAL INTERVIEWING (COMMUNICATION)
The personal interviewing process is characterized by the interaction of four entities; the
researcher, the interviewer, the interviewee, and the interview environment. The interviewer and
interviewee interact and simultaneously influence one another in an interview environment.
MALL INTERCEPT
Shopping-center interviews are a popular solution when funds are limited and the respondents
must see, feel or taste something. Interviewers stationed at entrances or selected locations in a
mall, randomly approach them and either question them at that location or invite them to be
interviewed at a special facility in a mall.
SECONDARY DATA COLLECTION:
Secondary Data was collected through magazines, journals, articles and earlier reports.
Secondary Data helped in finding the variables that has an effect on the perception made by the
people towards Internet Banking.

2. SAMPLING PLAN
> POPULATION
All people residing in Surat city who are the customers of different banks that provide Internet
banking Facility. It includes:
> ELEMENTS
All people residing in Surat city who are the customers of different banks that provide Internet
banking Facility.
> SAMPLING UNIT:
Here, in our research project the sampling units are those who have are the customers of bank
and who use the internet banking services.
> EXTENT
Surat City, covering all the major areas of Surat possible
> TIMINGS
December 2011 February 2012
> SAMPLE FRAME
Whoever uses this service and is encountered during survey period is included in sample frame
and is a part of sample.
> SAMPLING UNIT
Here, in our research project the sampling units are those customers of banks who use the
internet banking services.
a. SAMPLING METHOD
Since no concrete sample list is available we have used Non Probabilistic sampling methods.
From non-probabilistic sampling method we have used Judgmental and convenient sampling
method.
Judgmental is used because only those customers who use Internet Banking Services will be
surveyed.
Convenient is used because the samples will be surveyed on the basis of convenience of
interviewers as well as respondents.
b. SAMPLE SIZE:
Sample size of 250 will be taken based on convenient and judgmental Sampling keeping in
view the socio-economic characteristics.


DATA ANALYSIS PLAN
Data will be analyzed using SPSS (Statistical Package for Social Sciences) package v 19.0 by
IBM. The data analysis tool applied here is Factor Analysis.
Factor analysis- a set of techniques of which, by finding correlation between variables,
reduces their number into fewer factors explaining much of the original data was used.

LIMITATIONS TO THE STUDY
a) Time-Money-Energy are a scarce resource & hence major constraints.
b) Apart from it, the no. of samples are too limited and small and are located in a single location
(Surat City)
c) Besides this, Convenient / Judgmental sampling method is used, i.e; Non Probabilistic
sampling methods are used and hence the samples are selected by human judgment rather
than by known probability or chance.
d) There exists a probability that respondent may give biased answer or socially desirable
answer.
e) Interviewers are not experienced and hence there exists a possibility that the research is may
be conducted improperly in some cases.

BENEFITS OF THE STUDY
The study will be useful to the company, to the marketers of the service, to the banks as well as a
base for research studies which can be extended from the point at which this research study
concluded. The benefits of the study are:
This study will help the company to identify the strength and weakness of the service, thus
helping us to earn a competitive advantage over our competitors by capitalizing on our strength.
It will also identify weakness or bottlenecks, thus helping us to overcome the weakness and
turning that weakness into a potential strength.
By knowing which factors motivate consumer to use this service, the company can work more
on that factor, giving thrust to its sales profit and overall market share & enhanced customer
satisfaction.