RESEARCH PROJECT ON

“CUSTOMER SATISFACTION TOWARDS INTERNET BANKING”

Submitted as Partial fulfillment for

Degree of Master of Business Administration

To

Medi-Caps University, Indore

2019

MBA 2ND SEM SECTION – E

SUBMITTED TO: SUBMITTED BY:

DR. ANUPAMA PARDESHI

SHUBHANGI BISARE

VARSHA SINGH

VIJAYSHREE ANCHERA

YASH BHAWSAR

SHUBHAM MISHRA

VARSHA SOLANKI
 CERTIFICATE FROM THE PROJECT GUIDE
The following research project entitled “CUSTOMER PERCEPTION TOWARDS
PUBLIC AND PRIVATE BANKS AT INDORE” which is being submitted by GROUP-
1ST of MBA section “B” under my Supervision has satisfactorily completed the
research work.

Dr. AnupamaPardeshi

(Assistant Professor,

Medi-caps University, Indore)

 DECLARATION

We hereby declare that this research project work entitled “CUSTOMERS

SATISFACTION ON INTERNET BANKING” is carried out under the supervision of
our Professor. To the best of our knowledge and belief, it is an original piece of work
and is the sheer outcome of our own efforts under the vigilant guidance of Ma’am. This
work has not either in full or in part has been submitted to any other institution for the
award of any other course.

SUBMITTED TO: SUBMITTED BY:

DR. ANUPAMA PARDESHI

SHUBHANGI BISARE

VARSHA SINGH

VIJAYSHREE ANCHERA

YASH BHAWSAR

SHUBHAM MISHRA

VARSHA SOLANKI
 ACKNOWLEDGEMENT

We are very grateful to our mentor DR. AnupamaPardeshi for the continuous guidance
throughout our Research Project. She has devoted her valuable time and motivated us
at each step in completing this research. The study would not have been possible
without her kind guidance.

We are deeply indebted to Shri. R.C. Mittal, Director, Medi-caps University, Indore for
his moral support and counseling. Her support has rendered us great help towards this
research.

We also express sincere gratitude to our parents who are always there for us whenever
we need them, also to friends and respondents for their extended support throughout
the research period. Finally we are thankful to all those who have directly or indirectly
contributed in this research.
ABSTRACT

The banking industry has been rapidly developing the use of Internet banking as an
efficient and viable tool to create customer value. It is one of the popular services
offered by the traditional banks to provide speedier and reliable services to online
users. With the rapid development of computer technology as a commercial too
Internet banking can be used to attract more customers to perform banking
transactions in related banks. However, the main problem of Internet banking faced
by the providers is that a large number of the banks’ customers are not willing to
use the Internet banking services offered. This happened due to the services offered
through Internet banking have yet to satisfy their customers. Customer satisfaction
is an important factor to help banks to sustain competitive advantages. Therefore,
the purpose of this research is to search and examine the factors which influence
customer satisfaction towards Internet banking. The five factors which can
influence customer satisfaction toward Internet banking include service quality,
web design and content, security and privacy, convenience and speed. With the use
of a questionnaire survey, 200 working adults participated in this study have
provided valuable feedback and responses pertaining to the above factors that
influence customers’ decision to do Internet Banking. The results of this research
showed that web design and content, convenience and speed are closely linked to
customer satisfaction toward Internet banking. Or … The results of this research
showed that web design and content, convenience and speed are the top three
factors that influence customer satisfaction toward Internet Banking.
S.NO. PARTICULARS PAGE No.
 CERTIFICATE I
DECLARATION II
ACKNOWLEDGEMENT III
1 INTRODUCTION 1

2 REVIEW OF LITERATURE 2

3 RESEARCH METHODOLOGY
3.1 6
Objective of the Research
3.2 6
Hypothesis
3.3 6
Data collection and methods
3.4 7
Sampling size
3.5 7
Types of research
3.6 7
Why this research
7
Limitation of the study
4 DATA ANALYSIS AND INTERPRETATION
8
SPSS Analysis
8
Data interpretation
5 CONCLUSION 26

6 REFERENCES 27

7 QUESTIONAIRE 29

INDEX
 Chapter 1

Introduction
The technological innovation of electronic channel of service delivery has brought in a level
playing field for businesses by eliminating geographical, regulatory, and industrial barriers .
In the words, this revolution in the market place has set in motion a revolution in the banking
sector for the provision of a payment system that is compatible with the demands of the
electronic marketplace. According to Awad, there are four electronic commerce activities
internet users perform. These activities require a banking relationship and are: shopping,
banking, investing, and online electronic payment for Internet services. The enormous
increase of the internet is changing the way businesses interact with consumers as most
businesses are now conducted using the internet. It is this introduction of e-commerce as a
means of payment that has urged banks to take a leap from the traditional banking services,
offering a service strongly through the medium of internet, which has come to be known as
internet banking or e-banking.

Existing literature on internet banking in India indicates that despite its growing use and
adoption by many banks, no significant effort has been made to understand whether the
customers whom the technology is meant for are satisfied or not and what are the
demographic characteristics of the ones who have adopted the technology.

Internet banking is an electronic payment system that enables customers of a financial

institution to conduct financial transactions on a website operated by the institution, such as a
retail bank, virtual bank, credit union or building society. Online banking is also referred as
Internet banking, e-banking, virtual banking and by some other terms. This new channel has
added a new dimension to the concept of customer satisfaction and how it can be affected in a
positive way. All organizations exist and strive to become an integral part of the lives of their
customers and therefore always strive harder to keep satisfying their customers through better
channels of delivering their offerings. There are many factors which have an impact on
customer satisfaction, one of the most important being service quality. Due to the varying
nature of the products offered in manufacturing sector and in the services sector the definition
and measurement of service quality, it was seen could not be the same for both. Especially, in
the present era, with the emergence of internet as a major channel of service delivery, the
need for a scale to measure the service quality in electronic media of services was felt
strongly. Hence, service quality was taken up by the research scholars specifically in terms of
the e-services which lead to the development of various models that helped in measuring e-
service quality in the services sector.

The marvelous kinds of innovation in technology and hard line blend of it with
information technology made a paradigm shift in the banking industry. Technology itself
created its world in the globe of human beings. Advent of Internet banking happened in early
1990. This beginning of Internet Banking created a phenomenal system, Internet banking.
Internet banking is a kind of systems that enable financial institution customers, individuals
or businesses, to access accounts, transact business, or obtain information on financial
products and services through the Internet.

The Government of India enacted the IT Act, 2000 (Information Technology Act). This Act
came into effect from the 17 of October 2000. The purpose of this Act, in context of
banking, was to provide legal recognition to electronic transactions and other means of
Electronic Commerce. The working group set by Reserve Bank of India, has been working as
a watchdog on the different aspect of the Internet banking. ICICI bank was the pioneer bank
to use Internet banking for some of its services in India. ICICI bank and a lot of other Indian
banks use the Internet banking system to provide online banking solution.

In the current scenario, Indian customers are moving towards Internet banking, slowly but
steadily. Most of the leading Indian banks like SBI, BOB, BOI, etc. have started providing
Internet banking services.

There is a clear need to develop a better understanding of how customers evaluate these
services and boost up satisfaction. Customer satisfaction is one of the main aspects
determining the success or failure of any electronic banking services. Customers' satisfaction
has tended to lag behind because practitioners have focused mainly on issues of usability and
measurement of use. Therefore, customer perception and preferences on internet banking
have a significant impact on bank's success.

As India is taking giant leaps towards globalization Internet banking is the sector to be
studied with great interest. The question of how attitude towards elements of existing banking
service might influence the consumer's decision to use internet banking has not been
investigated. As customers get more and more educated, getting insight about modern
banking, via internet banking has evolved as primary area of concern for all leading and
upcoming banks in India. This study provides an insight analysis on this aspect. The research
will assist bank administration to ascertain a better understanding of customers' satisfaction
towards internet banking offered by the ICICI Bank.

IMPORTANCE OF THE STUDY

Research has been conducted in order to critically evaluate and examine the customers'
satisfaction towards internet banking of ICICI Bank. The purpose of this study is also to
observe and analyze the purpose of using internet banking, reasons for chosen internet
banking, satisfaction of customers towards internet banking and to find out the problems
encountered by the customers. Specifically, this study highlights the important points that
ICICI Bank's top management must consider in order to increase the number of
internet banking users and to improve their service quality.
STATEMENT OF THE PROBLEM

Changes in banks' external environment, including globalization and deregulation, have

made the banking sector highly competitive. Banks find it hard to compete on price and need
to look at other ways to retain customers. As customers become more sophisticated, it
becomes imperative for banks to consider the use of technology to respond to their
continuously changing requirements. But current scenario in India shows that pace at which
technology in Internet banking proceeds doesn't march with the customers' usage rate. Even
though banks are more interested in adopting new technology to differentiate them in
competitive market, they are not getting expected return on investment. So, is this the fault at
the end of the technology or customers' perception? If any, then why? If both, then why? Is it
due to lack of skills or will? Update on technical skills through customers' education
on internet with simple software can create an interest in the customers' mind. However,
interest and desire to a great extent will depend upon his demographic factors. This will affect
his perception on Internet banking. This research is focused on what is the customers'
satisfaction on internet banking. What are the drivers that drive customers' towards better
satisfaction? Bank can evaluate its internet banking system with respect to the drivers and
customers' response to these drivers.

CHAPTER 2

Review of Literature

Ameme, B., &Wireko, J. (2016) claimed in his research that in today’s competitive world
where technology plays a very important role and if we talk about banking sector or industry
there is a positive relationship between technology and customer satisfaction. They also
stated that satisfaction of customers is not merely introducing innovative products and
services rather it is much more than that. They also found that if the bank wants to become
the market leader in the competitive environment it must use the innovation approach in all
the aspects like products and services. Also there is a significant relationship between
technological innovation and cost. As the innovation increase the cost is also increase.

Machogu, A. M., &Okiko, L. (2015) research brought to light that with e-banking
complexities on customer satisfaction. Results shows that there are factors which
leads to customer satisfaction particularly in e-banking, which is one of the very important
and fast growing way of doing banking. Factors are accessibility, convenience, security,
privacy, content, design, speed, fees and charges have influence on customer satisfaction
where the other factors notified have no significant influence.

Chochol'áková, A., Gabcová, L., Belás, J., &Sipko, J. (2015) research stated that in
comparison with dissatisfied customers, satisfied customers were significantly more like by
to recommend their bank to their friends and to consider using their current bank in the
future, and they are more resistant to offers from other banks. Loyal customers are more
interested in the services of their own banks when considering investments in all the aspects
such as in the financial market, deposit their own savings to their own bank, take out a
mortgage from their own bank and use other banking products and services from their current
bank. According to a research by Ernst & Young (2012), the financial literacy of ordinary
bank customers is still relatively low, but personalized recommendations still work well here.
According to the results of our research, loyalty of customers with different intensities
transforms into a potential purchase of additional banking products. The biggest potential
interest of the bank customers was in depositing savings in the bank and in mortgage loans.
The intensity of interest in the purchase of investments and other products was relatively low.
Findings of Deloitte research (2012a), only 17% of respondents in the Czech Republic have
changed their bank in the past or have accounts in two different banks, in comparison with
Slovakia where 52% of respondents changed their account to another bank (12% in Poland,
28% in Hungary and 42% in Romania)

Kaur, N., &Kiran, R. (2015) founded in their research which was on public, private and
foreign shows that customer are more satisfied with the services quality of the foreign banks
then the private and public banks.

Kundu, S., &Datta, S. K. (2015) research found regarding e-service quality,

customer satisfaction and trust they found that there is a significant relationship among e-
service quality, trust and customer satisfaction. Internet banking service quality has huge
impact on trust. They also researched that in case of internet banking privacy and fulfillment
are the main factors of service quality which have influence on trust. Also banks should be
more concerned about the privacy of individual transaction of the customers. According to
Ernest and young 2012 survey showed that price factor was the main concern for 50 percent
customers.

Zeinalizadeh, N., Shojaie, A. A., &Shariatmadari, M. (2015) opined that out of the nine
customer satisfaction factors fees and loan, prompt service and appearance are the major
factors which have more significant impact on customer satisfaction followed by
interest rate and accessibility of bank and availability of service which have less impact on
the satisfaction on the banking customers.

Rahi, S. (2015) research findings show customers are more loyal towards those banks who
are facilitating internet banking services. Also good brand image build relationship between
banks and customer and enhance the customer loyalty toward bank. He also concluded that
those banks that are giving the internet banking services to their customers, loyalty of those
customers are more towards the banks. He also suggested that if the brand image also plays a
significant role between loyalty of the customers and internet banking. The role of brand
image is positive in making a positive relationship between customers and internet banking.

Pareek, V. (2014) research opined with a remark that out of several factors few
causal fundamental factors like product attributes, employee characteristics, customer
convenience,bank tangibles, cost of transactions and customer communication
contributes in customer satisfaction in Indian banks. Interestingly convenience one of the 4
P.s i.e. marketing mix was found to be an unimportant in deciding customer satisfaction in
Indian banks (studied banks).

Vyas, V., &Raitani, S. (2014) opined that there are many drivers of switching behavior in the
banks. Particularly they found nine critical factors which contribute in switching the banks.
One very interesting driver is customer satisfaction in all the drivers which contribute in the
switching behavior of customers. So again we can’t ignore that customer satisfaction of the
major factors among. Banks should come out with the strategies that increase the customers
satisfaction.

Suriyamurthi, S., Mahalakshmi, V., &Arivazhagan, M. (2013) stated that in the cutthroat
competition where every bank is focusing on retaining and attracting new customer,
relationship marketing is the key element which should be adopted by the banks. They
also found that banking sector is one of the major service sector and the business of
banks is more or less dependent on the customer services and satisfaction. Banks should
increase their services and make good relationship with the customer.

Gupta, A., &Dev, S. (2012).opinedsatisfaction of customer is dependent on variable then

independent variable. These dependent variables largely depend on service quality,
ambience, involvement, accessibility and financial factors of the bank. According to the
findings of theresearch. The impact of nearness of bank and financial factors on customer
satisfaction is not up to the mark.

Sharma, N. (2012) research study used the 17 variables related to the quantitative aspects of
e-banking. Study on rural customers satisfaction from e-banking was found to be
significant. Research suggests that satisfactions in rural customers are quite satisfied in e-
banking services. So, in order to improve the tendency to use e-banking channels in rural
areas the use of local languages during dealings should be promoted as well as publicized.
Her research also suggest that ATM is one of the important channel out of all alternate
banking channels for securing patronage of rural customers.

Ganguli, S., & Roy, S. K. (2011) Research opined that in fast driven technology world banks
should adopt the technology which can lead to customer satisfaction and loyalty. Keeping this
in mind they researched on four dimensions like customer service, technology
security and information quality, technology convenience, and technology usage
easiness and reliability. Results states that there is significant relation between
customer service, technology usage easiness and reliability and customer satisfaction.
On the otherhand they found the positive relation between technology convenience and
customer satisfaction. So it was found that technology play an important role in satisfying
the customer specifically in the case of banking.

Singh, J., &Kaur, G. (2011) research suggested that customer satisfaction is the outcome of
seven determinants namely social responsibility, employee responsiveness, appearance of
tangibles, competence, and reliability. services innovation, , positive word-of-mouth.
According to their study customer satisfaction if influenced by social responsibility, positive
word-of-mouth, and reliability.they also founded that relationship marketing is the important
tool which can significantly increase the customer satisfaction. Other factors like employee
behavior, their friendliness, politeness, cooperation, promptness, efficiency, knowledge level,
trustworthiness, and appearance also play an important role in satisfying the customer.

Munusamy, J., Chelliah, S., &Mun, H. W. (2010) claimed of their research shows that service
quality is a very important dimension of customer satisfaction in banking industry.
All the determinants of service quality like reliability, assurance, tangibility, empathy and
responsiveness shows significant relationship with customers. They also state that
intangibility intension is very difficult to measure then tangibility particularly in case of
service quality. Customer needs, wants, preferences change any point of time without
giving some hints to industry.

Mishra A, (2009) stated that customer satisfaction majorly depends on the provision
of an approach for the manager so that higher customer satisfaction for the future could be
obtained by the bank. Also in his research he used the demographical characteristics of the
customers to know about the satisfaction level of the customers.

Rod, M., Ashill, N. J., Shao, J., &Carruthers, J. (2009) research findings suggests that online
banking positively influences customer perception. So bank management focus should be
on good customer service quality in terms of reliability, responsibility, tangibility and
empathic. This study was also found to be significant that online information system
quality is very important predictor of overall banking service quality.

Lopez, J., Kozloski Hart, L., &Rampersad, A. (2007) Research claimed that by using the one
of the service quality tool in which customer satisfaction was measured on the basis of
ten dimensions. Results significantly show that out of ten six dimensions namely
reliability, responsiveness, tangibles, access, communication, and credibility shows the
positive impact on customer satisfaction.

Molina, A., Martín-Consuegra, D., & Esteban, Á. (2007) brought to light that it is
very important to have good relations with the customers which leads to increase in business.
Also in there research they stated that satisfaction of customers is depends on service policy
satisfaction, on accessibility and on the front line employee satisfaction. So positive
relationships with the customers always lead to financial success to the bank for long run.
Pont, M., &McQuilken, L. (2005)Research study was to find out the whether
satisfied customers are loyal towards the banks. In the research they concluded that there is
no significant relation between customer satisfaction and customer loyalty. They founded that
even satisfied customers are not all the time loyal. If banks want to achieve high customer
satisfaction they need to adopt the good approach because with the less costly approach
banks could not get moderate customer satisfaction. They also stated that banks should
exercise and examine the customer perceptions’ towards the service quality. So if the bank
want to keep their existing ones and want to attract new ones then they should continually
supervise customer satisfaction and its impact on loyalty.

Aaltonen, P. G. (2004) brings an awareness of the importance of the impacts of demographic

variables and of technology on satisfaction of customers and loyalty in the financial
service industry. In past studies they have verified that extremely satisfied customers are,
indeed, more loyal customers.

Mols, N. P. (2000) stated internet banking with the help of customer feedback that is in no
time helps banks to construct and keep secure relationships with their customers
and diminish operating and fixed costs makes it is easy for them to utilize electronic fund
transfer and foreign exchange transactions (Kam&Riquelme, 2007). .
 CHAPTER 3

RESEARCH METHODOLOGY
Survey Method has been followed for the study. Both primary and
secondary sources of data were used. Well structured questionnaire was
designed to elicit necessary data and details from the customers of ICICI
Bank. The secondary data were collected from the books, journals,
web portals, etc. The primary data was collected through the well
structured questionnaire consist of optional type and Likert's 5 point
scale type questions. The questionnaire consists of demographic factors of
the customers, purpose of using internet banking, reasons for availing
internet banking facility and satisfaction with internet banking. ICICI
Bank was purposively selected on familiarity and it had unique
performance compared with the other private sector banks in India. The
Convenient Sampling Method was adopted to select the customers of
internet banking of ICICI Bank in Erode. The sample size constituted 120
customers of ICICI Bank. The data collected from the respondents were
coded and tabulated to suit the requirements of the study. Statistical
Package for Social Sciences (SPSS) was used for analyzing the data. The
appropriate statistical tools such as Descriptive statistics, Non parametric
Friedman's test, K means cluster analysis and Multiple Regression have
been employed to analyze and interpret the data. SC

Objectives

1. To identify the various dimensions of internet banking service quality.

2. To examine the relationship between the customer satisfaction and the various internet
banking service quality dimensions.
3. To study the impact of the internet banking service quality dimensions on the satisfaction
of customers.
4. To examine the relationshipbetween demographicvariables of customers with customer
satisfaction towards internet banking offered by banks.
5. To compare thesatisfaction level of customers for Public, Private and Foreign Banks with
internet banking.

Hypothesis
From the above objectives the following set of hypothesis were framed:
H1: Efficiency has a significant positive association with on Customer Satisfaction
H2: System availability has a significant positive association with Customer Satisfaction
H3: Fulfilment has a significant positive association with Customer Satisfaction
H4: Privacy has a significant positive association with Customer Satisfaction
H5: Responsiveness has a significant positive association with. Customer Satisfaction
H6: Website design has a significant positive association with. Customer Satisfaction
H7: Contact has a significant positive association with Customer Satisfaction

Data Collection and Methods

The research was conducted using a structured questionnaire adopted from
Parasuramanstudy, which included the dimensions of E-S Qual and E-RecS-Qual.

The questionnaire comprised of four sections:

• Customer demographics: The questions in this section were related to gender, age and
education.
• E-S-QUAL scale: Respondents in this section rated the Web site’s performance on each
scale item using a 5-point scale (1=strongly disagree, 5=strongly agree).
• E-RecS-QUAL scale: Respondents in this section rated the Web site’s performance on each
scale item using a 5-point scale (1=strongly disagree, 5=strongly agree).
• Customer satisfaction: Respondents in this section were asked to rate their satisfaction level
with the E-Service quality of the banks using a 5-point scale. (1=strongly disagree,
5=strongly agree).

Sampling Size:
The samples of the survey were people living in New Delhi that have been users of Internet
Banking system of SBI and Indian bank for at least one year. This ensured that all
respondents had sufficient experience in internet banking. The resulting sample (valid)
comprised of 194 valid questionnaires out of 133 people that were asked to participate in the
survey.

Types of Research:
This study is DESCRIPTIVE in nature.It helps in breaking vague into smaller and precise
problem and emphasizes on discovering of new ideas and insights.

WHY THIS RESEARCH

An online survey and is to describe situation is a descriptive research method that produces
conclusive. data given is quantitative ability .Unlike exploratory research, descriptive
research is methodically planned ,designed and formatted to collect quantifiable data.
Grouping responses into set choices will provide statistically conclusive data. This allows
you to measure the significance of your results on the overall population, as well as track the
changes of your respondents opinions ,attitudes, and behaviours over time.
Scope of the study
This study will be helpful to point out the important areas where banker lacks in
providing internet banking. The actions which can increase the satisfaction level of customers
on internet banking and motivate them to use internet banking efficiently. This study brings
the attentions of management towards the importance of training and development of
customers of internet banking.

 Area is restricted to only DELHI because due to the time constraint and not able to
visit all the branches in other cities or states.
 All the classes of the customers were taken into consideration.
 This study was covered E-banking service sector.
 This is a realistic source directly collected from the customers of bank.

Limitation of the study

 As a research is based on a sample ,therefore, the finding may not reveal the factual
information about the research problem ,though an utmost care will betaken to select a
truly representative sample.
 There may be some bias in the responses of the respondents which cannot be ruled out
fully.
 Sudden changes in the e-banking practices during the course of research can affect the
results.
 The study is limited to delhi only.
 People were reluctant to go in to details because of their busy schedule.
 Due to continuous change in environment, what is relevant today may be irrelevant
tomorrow.

CHAPTER 4

1. SPSS Analysis

INDEPENDENT SAMPLE T-TEST

  FROM the SAPP Analysis on customer’s perception towards internet
banking bank the level of significance we got in result is 69.796 which is
greater than 23.740 level of significance that’s why our null hypothesis for
the research gets accepted.

Data interpretation
This is the data collection from the respondents:-

PART-A

Demographic variables

Part One: Demographic Profile

It is very essential to reveal the demographic profile of the customers. The profile of the
customers includes their age, gender, educational qualification, profession and bank of the
customers.The study is based on primary data collected from one hundred banks’
customers in KPK province of Pakistan. All questionnaires were completed one by one
and properly reviewed. During the data gathering the respondents were asked to fill first
section of the questionnaire if they are satisfied with online banking services or to fill
second section if they are not satisfied. The third portion of questionnaire is for all
respondents either they are satisfied or not.
Interpretation of demographic variables through pie chart .
Gender :-

Age of the candidates:-

 15-30
 30-50
 Above 50
Bar graph showing the age of the candidates:-
Age of the candidates (in year)

Occupation
Categorized into:-

1. Business class.
2. Sevice class
3. Professional .
4. Student .
5. Others.
 0ccupation

1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

Annual income
Respondent having income:-

1. Less than 200000

2. 200000-500000
3. 500000-1000000
4. Above 1000000
Bank users describing which bank he/she opts:-

A. SBI BANK
B. ICICI BANK
C. OTHER BANKS
Which bank user

Part-B
o Gather customers perception through E-forms questionbaire-question showing of
respondents through data interpretation(pie chart)
o Response collected through customers in 5pointer likert scale:-
1. Strongly disagree
2. Disagree
3. Neutral
4. Agree
5. Strongly agree
Question-01

I feel secure in all transaction with my bank?

Question-02

I feel internet service of my bank in flawless?

Question-03

My branch have convenient and waiting arrangement ?

Question -04

I feel that online service of my bank is 24*7 un –interterrupted?

Question-05

My bank bear all the service (like net banking) within the promised deadlines?

Question-06

The bank always inform me about new and attractive schemes through messages?
Question-07

My bank’s website makes accurate promises about delivery of services ?

Question-08

E-banking services are generally faster than traditional banking that avoid long queue in
banking halls?
Question-09

My bank provides affordable rate on loans ?

Question-10

Internet banking helps to transfer fund from the bank to the personalized account?

\
Question-11

Mobile banking helps me to make my bill payment ?

Question-12

Atm service is more prestigious than queuing at the bank ?

Question-13

My bank gives quick response to my queries ?

Question-14

I am satisfied with the overall service quality provided by the bank ?

 CONCLUSION

Internet banking services. If not done precisely and correctly application of

the methodology does not show its real value, does not Exploring online banking customer
requirements allowed the definitions of service criteria assuring customer satisfaction at the
time of realization and so the factors regulating the quality level of Internet banking services
Construction of the House of Quality for Internet banking pointed out the critical technical
attributes exposing the level of quality of the services, the remarkable strengths and also
positioning at the current market via competitive
benchmarking. Strategic change in understanding the importance of voice of a customer as
an individual is unavoidable for the bank. Analyzing voice of the customer and building a
transformation framework bringing it into
practice are the leading steps of the methodology and the most important factors in regulating
the level of quality of bring the expected return of time and capital investments and data
processing happens to be wasting
of resources. Only a systematic and permanent monitoring of the customerrequirements
incorporated in all bank processes and a system of their prioritization will guarantee future
benefits and will lead all business efforts to
correspond to the real structure of the customers demands and needs. The quality of Internet
banking embodies various quality management issues. It is an electronic service, which
necessitates research into the e-service quality
dimensions, customer satisfaction, trust and loyalty in the online environment. Internet
banking is an e-business application that requires concept planning, web components and
technological planning. Due to the fact that online banking depends fundamentally on the
effective information exchange between the bank and its clients, the information quality
covers a significant part of the online banking quality management.All these quality aspects
together create a complex managerial challenge for e-banking managers who need to be
skilled enough to handle them. QFD is a flexible methodology that needs to be adapted to
incorporate these different quality aspects. The first initiatives of QFD projects have to start
by acquiring top management commitment and the change in the overall organizational
culture. By spreading a positive attitude towards quality techniques it will be easier for project
leaders to motivate team members and achieve an adequate time commitment. Successful
QFD realization requires a precise planning and preparation phase. In order to gain all QFD
benefits, QFD application has to be preceded by a training period. Incorporating Quality
Function Deployment into a bank’s philosophy as a common part of day-to-day management
may be a difficult re-engineering task. QFD can be perceived as constraining and often
requires additional resources especially at the starting level. By applying QFD we
demonstrated the potential this technique in defining the customer expectations and the
translation into the design specifications ensuring the customer satisfaction.
 REFERENCES:

[1]Lovelock, Cristopher, 2001, service Marketing: People, Technology, Strategy, 4the

Edition, Prentic Hall.
[2]VimiJham and KaleemMohd Khan,2008, "Customer satisfaction in the Indian Banking
Sector. A Study" IIMB Management Review, Vol.
20 No. 1.
[3]Narasimham Committee Report, 1997,--www.indianembassy.org/enews/apr98.
[4]Jham, Vimi, 2005, "Insights into Customer Interactions in the Banking Industry--A
Qualitative Relationship Marketing Study", Review of
Professional Management, Vol. 3, No. 1 pp 10-17.
[5]Chan L.-K., Wu M.-L. (2002). Quality function deployment: A literature review.
European Journal of Operational Research, 143, 463-497.
[6]Cruchant L. (2000). La Qualité. Presses Universitaires de France 2000, 5th édition.
[7]Dholakia N, Pandya A. (2002). Conceptualising B2C Businesses as Services. Working
Paper, RITIM Research Center, University of
Rhode Island, Kingston, RI.
[8]Ghobadian A. (1994). Service Quality: Concepts and Models. International Journal of
Quality and Reliability Management, Vol. 11, No. 9,
1994, p. 43-66.
[9]Ghobadian A., Speller S., Jones M. (1994). Service quality: concepts and models.
International Journal of Quality and Reliability
Management, Vol. 11, No. 9, 1994, p.43-66.
[10]Krostie J. (1996). Using Quality Function Deployment in Software Requirements
Specification.Andersen Consulting and IDI, NTNU,Oslo, Norway.

Analysis of Customer Satisfaction in Internet Banking Service Quality using Quality

Function Deployment Approach
941
[11]Liljander V., van Rien A., Pura M. (2002). Customer Satisfaction with e-Services: The
case of an OnlineRecruitement Portal. Published
in the Yearbook of Services Management 2002 – eServices.
[12]Mazur G. H. (1993). QFD for Service Industries.The Fifth Symposium on QFD,
Michigan.
[13]Minjoon J., Shaohan C., DaeSoo K. (2002). The Linkage of Online Banking Service
Quality Dimensions to Customer satisfaction.
Decision Sciences Institute 2002 Annual Meeting proceeding.
[14]Parasuraman, Zeithaml and Berry (1985). A conceptual model of service quality and its
implications for future research. Journal of
Marketing, fall 1985, p. 41-50.
[15]Poulymenakou A., Tsironis L. (2003). Quality and electronic commerce: a partnership
for growth. The TQM Magazine, Vol. 15, No. 3,
2003, p.137-151.
[16]Qualité et systèmes de management ISO 9000 ; NF EN ISO 9001:2000 Guide pour
l’identification des exigences des clients ; AFNOR,
2001.
[17]Sahut J. M., Hrnciar M. (2003). Problématique de la Qualité des Services d’Internet
banking.Gestion 2000, vol. 2, p. 69-86.
[18]Santos J. (2003). E-service quality: a model of virtual service quality dimensions.
Managing Service Quality, vol. 13, no. 3, p. 233-246.
[19]Shaikh M.A., Whittaker J.A. & others (2001). E-Commerce Need Analysis via Quality
Function Deployment. Change Management and
the New Industrial Revolution 2001, 317-322.
[20]Tam Ch.T.W., Leung T.K.P., Wong Y.H. (2003). An integrated model of online
customer loyalty. Proceedings of ABAS International
Conference 2003, July 11-13, Brussels, Belgium.
[21][Van Riel A.C.R., Liljander V., Jurriens P. (2001). Exploring consumer evaluation of e-
services: a portal site. International Journal of
Service Industry Management, Vol. 12, No. 4, 2001, p. 359377.
[22][Xue M., Harker P.T., Heim G.R.(2003). Incorporating the dual customer roles in e-
service design. Working Paper January 2003, The
Wharton Financial Institutions Centre at the Wharton School of the University of
Pennsylvania.
[23]Yang Ch.Ch. (2003). Quality management in the era of cybereconomy (e-QM).
Proceedings of the International QMOD Conference 2003,
October 1-3, Paris.
[24]Yang J., Gibson Ch. (2003). E-banking – recent and development: a case study.
Proceedings of 2003 Annual Meeting of the Southwest
Decision Sciences Institute, Houston, Texas, March 5-8, 2002, pp; 429-433.

Finding and conclusion

Findings this paper is an endeavor to find the customer satisfaction level in case of online
banking system. The major findings is that all the customer responses rotates around only
“Neutral, “Agree” and with “Strongly Agree”. Among these three responses, this paper
suggest found that almost 60% of the responses are in the region of Agree and Strongly
Agree. This is a clear indication of a satisfied customer. Besides, rest of the 40% of the
responses went with Neutral feedback. This research paper considers this along with positive
response. Another proof for satisfied customer level is that, they did not provide their answer
to the scale of “Disagree “. So to conclude it is easy to say that online banking services of
“One Bank Limited” is quite satisfactory to its customer.
Questionnaire for Banking Customer

Questionnaire

Dear valued respondent,

We are conducting a research study on

“CUSTOMERSATISFACTIONTOWARDSINTERNETBANKING”.
I am very pleased to have you as my respondent & really appreciate your
contribution to this academic exercise. Your inputs will provide the most valuable
information in disseminating finding for my research project. The information given will be
treated as private & confidential & will only be used for the purpose of this research only.

Sincerely yours,

Name of the customer:-

Age:-

(a) 21-30 years (b) 31-40 years (c) 41-50 years (d) 51years & above

Annual Income:-

(a) up to Rs.1, 00,000 (b) Rs.1, 01,000- Rs.3, 00,000

(c) Rs. 3, 01,000 – Rs.5, 00,000 (d) Rs. 5, 01,000 & above

Education: - (a) Under Graduate (b) Graduate (c) P.G. (d) Professional

Occupation: - (a) Govt. Employee (b) Private Employee (c) Self Employed
1. Do you use E-banking

(a) Yes

(b) No

2. While opening up of account, were you aware of e- banking services provided by the
bank?

(a) Yes

(b) No

(If No, answer Question No. 3 to 7)

(If Yes, answer Question No. 7 to 18)

3. Manual Banking is more convenient than Internet Banking.

(a) Strongly Agree (b) Agree (c) Neutral

(d) Disagree (e) Strongly Disagree

4. How you perceive Internet Banking System?

(a) Complicated Technique (b) Not Easy (c) Difficult accessibility

(d) Rigidity (e) Don’t get required response (f) Poor Feedback

5. Are service charges for Internet Banking fair?

(a) Yes (b) No

6. Why have you never used online banking services?

(a) Do not have Internet at home

(b) Don’t trust internet services when it comes to managing my money

(c) Online services don’t enable me to do what I want to do

(d) I prefer to have personal human relation

(e) Find the process too difficult

7. Degree of confidence on e- banking

(a) Little (b) Some (c) Not at all (d) High (e) Very High

8. Tick which bank you preferred…

(a) ICICI

(b) SBI

(c) Bank of Baroda

(d) HDFC

9. Why this bank

(a) Service is good (b) They provide security (c) Cheaper service charges
10. Which one is the main reason for you to use e- banking

(a) Better Information (b) Simplification of processes

(c) 24 Hr. service (d) Limited time available

11. Which type of service mostly you use?

(a) Balance and transaction history search

(b) Online fund transfer

(c) Card to card fund transfer

(d) Open FD

(e) Lock / activate debit cards /ATM

(f) Request a cheque book

(g) Stop payment

(h) Railway pass / ticket

(i) Shopping

(j) Share payment

12. Frequency of transactions

(a) 2-3 times per week (b) Daily

(c) Once per month (d) Once per week

13. Are transactions through internet secure

(a) Very Much (b) Much (c) Some

(a) Little (e) Not at all

14. Are you satisfied with the using of E-banking?

(a) Yes (b) No

15. Degree of satisfaction from the service via internet comparatively to service via

banks

(a) Very High (b) High (c) Not at all

(b) Some (e) Little

16. Do you think that human contact is important for banking relation?

(a) Completely

(b) Somewhat

(c) Unsure

(d) Not at all

17. What are for you the 2 main disadvantages of online banking?

(a) Overall difficulty of using online banking system

(b) Lack of assistance

(c) Security concerns

(d) Limited service (doesn’t enable all banking operations)

(e) Impersonality of the service

(f) Dependence on internet service

(g) Unreliable

(h) No disadvantage

18. What would encourage you to use more the online banking services?

(a) Rewards (discounted fees for certain services)

(b) Simpler/clearer service

(c) Higher security

(d) Free transactions