AN ANALYSIS OF CUSTOMER S’ SATISFACTION AND FACTORS INFLUENCING THE ...shodhganga.inflibnet.ac.in/bitstream/10603/14794/12/12_chapter 5.pdf · 155 CHAPTER V AN ANALYSIS OF CUSTOMER

155

CHAPTER V

AN ANALYSIS OF CUSTOMERS’ SATISFACTION

AND FACTORS INFLUENCING THE INTERNET

BANKING

5.1 INTRODUCTION

Banking industry is also one of the predominant industries adopting

technologies which are helpful in providing better services to customers. Quality

of service is improved by using technological innovations. Internet banking is

time-saving. There will be huge acceptance of internet banking with the passage

of time with growing awareness and education. A great many people are shifting

to internet banking and are readily accepting the usefulness of this bounty. Many

factors are attracting the public like perceived ease of use, perceived usefulness,

security and privacy. Perceived ease of use is the degree to which using IT is free

of effort for the user. Internet banking is the latest development that has added a

new dimension to banking transactions by allowing customers to conduct financial

transaction through the Internet while perceived usefulness is defined as the

degree to which a person believes that using a particular technology would

improve job performance.

Banking institutions have taken several adequate measures to ensure

complete security for internet banking. Hence, the present chapter deals with the

156

level of satisfaction regarding the internet services offered by the public and

private sector banks, factors identifying the satisfaction of customers towards the

internet banking services offered by the banks and the factors determining the

customer satisfaction for public and private sector banks in Tirunelveli district.

5.2. LEVEL OF SATISFACTION

Increased competition, slower growth and mature markets are also forcing

many businesses to review their customer service strategy. Many businesses are

channeling more efforts to retain existing customers rather than to acquire new

ones. Moreover, banks carry on business with public money and therefore,

customers expect better services from them. Hence the present section attempts to

discuss the level of customers’ satisfaction towards the services on internet

banking among the selected public and private sector banks in Tirunelveli district.

The level of satisfaction has been determined by the score values

calculated for nineteen statements which are associated with customers’

satisfaction/fulfillment towards the internet banking services offered by the banks

by adopting 7-point scale (ranging from one indicating ‘strongly disagree’ to

seven indicating ‘strongly agree’), namely Likert Type Scale. Thus, the total

satisfaction score of a respondent is obtained by adding up the scores of all the

nineteen statements. The level of satisfaction is classified into three categories

namely low level, medium level and high level satisfaction for analytical

purposes.

The score values ³ `X + S.D. and the score values £ `X – S.D. have been

classified as high level of satisfaction and low level of satisfaction respectively.

157

The score values between (`X+S.D.) and (`X-S.D.) have been classified as

medium level of satisfaction. `X and S.D. are the arithmetic mean and standard

deviation calculated from the score value of six hundred respondents.

The calculated values of `X and S.D. are 117.41 and 12.49 for public

sector banks respectively.

Therefore,

`X + S.D. (117.41 + 12.49) = 129.90 = 130 and above - High level of

Satisfaction

`X – S.D. (117.41 – 12.49) = 104.92 = 105 and below - Low Level of

Satisfaction

(`X - S.D) and (`X + S.D.) between 105 to 130 - Medium Level

of Satisfaction

In the case of private sector banks, the calculated values of `X and S.D.

are 115.37 and 10.41 respectively.

Therefore,

`X + S.D. (115.37 + 10.41) = 125.78 = 126 and above - High level of

Satisfaction

`X – S.D. (115.37 – 10.41) = 104.96 = 105 and below - Low Level of

Satisfaction

(`X - S.D) and (`X + S.D.) between 105 to 126 - Medium Level

of Satisfaction

For testing the relationship between respondents’ profile variables and

level of satisfaction, Chi-square test is employed. For computing Chi-Square test,

the following formula is used.

(O – E)2

Chi-Square = å ---------- with (r-1) (c-1) degrees of freedom.

E

158

Where,

O = Observed frequency,

E = Expected frequency,

c = Number of column in a contingency table and

r = Number of row in a contingency table.

The calculated value of Chi-Square is measured with the table value of

Chi-Square for given level of significance usually at 5 per cent level. If at the

stated level, the calculated value (C.V.) is less than the table value (T.V.), the null

hypothesis is accepted or otherwise it is rejected.

5.2.1. Levels of Satisfaction

The levels of satisfaction of the six hundred sample respondents from

public and private sectors in Tirunelveli district are given in Table 5.1.

TABLE 5.1

LEVELS OF SATISFACTION

Sl.

No.

Levels of

Satisfaction

Public Sector Banks Private Sector Banks

No. of

respondents Percentage

No. of

respondents Percentage

1. High 51 17.00 32 10.70

2. Medium 218 72.70 237 79.00

3. Low 31 10.30 31 10.30

Total 300 100.00 300 100.00

Source : Primary Data

159

FIGURE 5.1


It is clear from Table 5.1 and Figure 5.1 that out of the 300 public sector

banks, 51 respondents (17.00 per cent) come under the category of high level of

satisfaction and 31 respondents (10.30 per cent) come under the category of low

level of satisfaction. But nearly 218 respondents (72.70 per cent) of the sample

from public sector banks have medium level of satisfaction.

In the case of private sector banks, out of the 300 customers, 32 customers

(10.70 per cent) are in the category of high level of satisfaction, 237 customers

(79.00 per cent) come under the category of medium level of satisfaction whereas

31 respondents (10.30 per cent) only have low level of satisfaction.

0

50

100

150

200

250

High Medium Low

No

. o

f R

esp

on

de

nts

Levels of Satisfaction


160

5.2.2 Gender and Level of Satisfaction

In determining the satisfaction of the respondents, gender plays a vital

role. Table 5.2 shows the gender and level of satisfaction of the respondents.

TABLE 5.2

GENDER OF THE RESPONDENTS AND LEVEL OF SATISFACTION

Sl.

No. Gender


High Medium Low Total High Medium Low Total

1. Male 31

(60.80)

148

(67.90)

21

(67.70)

200

(66.70)

25

(78.10)

174

(73.40)

20

(64.50)

219

(73.00)

2. Female 20

(39.20)

70

(32.10)

10

(32.30)

100

(33.30)

7

(21.90)

63

(26.60)

11

(35.50)

81

(27.00)

Total 51

(100.00)

218

(100.00)

31

(100.00)

300

(100.00)

32

(100.00)

237

(100.00)

31

(100.00)

300

(100.00)

Source: Primary data.

Note : Figures in brackets represent percentage to total.

From Table 5.2 and figure 5.1, it is inferred that in the case of public sector

banks, out of 51 respondents with high level of satisfaction, 31 respondents (60.80

per cent) of the respondents are male and 20 respondents (39.20 per cent) are

female. In case of medium level of satisfaction, out of 218 respondents, 148

(67.90 per cent) are male and 70 (32.10 per cent) are female. It also shows that

out of 31 respondents with low level of satisfaction, 21 respondents (67.70 per

cent) are male and 10 respondents (32.30 per cent) are female.

In the case of private sector banks, out of 32 respondents with high level of

satisfaction, 25 (78.10 per cent) are male and only 7 (21.90 per cent) are female.

In the case of medium level of satisfaction, out of 237 respondents, 174 (73.40 per

161

cent) are male and 63 (26.60 per cent) are female, whereas in the case of low level

of satisfaction, out of 31 respondents, 20 (64.50 per cent) are male and remaining

11 (3550 per cent) are female.

In order to test the relationship between gender and the level of satisfaction

of the respondents, the following null hypothesis is formulated: “The level of

satisfaction is independent of gender”. The Chi-Square test is applied to

examine the null hypothesis and the computed results are given in Table 5.3.

TABLE 5.3

GENDER AND LEVEL OF SATISFACTION: CHI-SQUARE TEST

Particulars Public Sector

Banks

Private Sector

Banks

Calculated Value 0.9570 1.5794

Table value at 5 per cent level 5.991 5.991

Degrees of freedom 2 2

Inference Not Significant Not Significant

* Significant at 5 per cent level.


It is inferred from Table 5.3 that for both the public sector and private

sector banks, the calculated values are less than the table values. Hence, the null

hypothesis is accepted. Therefore, it could be inferred that gender does not

influence the satisfaction of respondents towards internet banking.

162

5.2.3 Age and Level of Satisfaction

Age is one of the important factors in determining the satisfaction of the

respondents. The age and level of satisfaction of respondents are shown in

Table 5.4.

TABLE 5.4

AGE OF THE RESPONDENTS AND LEVEL OF SATISFACTION

Sl.

No

Age

(in

years)



1. Below 25

6

(11.80)

34

(15.60)

7

(22.60)

47

(15.70)

6

(18.00)

51

(21.50)

9

(29.00)

66

(22.00)

2. 25-45 15

(29.40)

113

(51.80)

19

(61.30)

147

(49.00)

20

(62.50)

148

(62.40)

20

(64.50)

188

(62.70)

3. 46-65 26

(51.00)

69

(31.70)

2

(6.50)

97

(32.30)

5

(15.60)

19

(8.00)

--

24

(8.00)

4. 65 and Above

4

(7.80)

2

(0.90)

3

(9.70)

9

(3.00)

1

(3.10)

19

(8.00)

2

(6.50)

22

(7.30)

Total 51

(100.00)

218

(100.00)

31

(100.00)

300

(100.00)

32

(100.00)

237

(100.00)

31

(100.00)

300

(100.00)



From Table 5.4, it is observed that in the case of public sector banks, out

of 51 respondents the high level of satisfaction is maximum with 26 (51.00 per

cent) who belong to the age group between 46 – 65 years followed by 15

respondents (29.40 per cent) are of the age group between 25-45 years, 6

respondents(11.80 per cent) are in the age group below 25 years and 4 respondents

(7.80 per cent) belong to the age group 65 years and above respectively. In the

case of medium level of satisfaction, out of 218 respondents, maximum of 113

163

(51.80 per cent) of them belong to the age group between 25-45 years and 69

(31.70 per cent) belong to age group of 46 – 65 years respectively. Further it is

also shown that, out of 31 respondents with low level of satisfaction, maximum of

19 (61.30 per cent) of them belong to the age group between 25-45 years and 7

(22.60 per cent) of them belong to the age group of below 25 years respectively.

In the case of private sector banks, out of 32 respondents the high level of

satisfaction, maximum of 20 (62.50 per cent) of them belong to the age group

between 25-45 years. The table 5.4 also reveals that 6 (18.00 per cent) who belong

to the age group of below 25 years, 5 (15.60 per cent) in the age group of 46-65

years and only one (3.10) customer in the age group of 65 years above is with the

high level of satisfaction respectively. In the case of medium level of satisfaction,

maximum of 148 (62.40 per cent) respondents belong to the age group between

25-45 years. The table also infers that 51 (21.50 per cent) respondents belong to

the age group of below 25 years. Further, it also shows that in the case of low

level of satisfaction, out of 31 respondents, maximum of 20 (64.50 per cent)

respondents belong to the age group between 25-45 years and 9 (29.00 per cent)

belong to the age group of below 25 years.

In order to test the relationship between age and level of satisfaction of the

respondents, the following null hypothesis is formulated: “The level of

satisfaction is independent of the age”. The Chi-square test is applied to examine

the null hypothesis and the computed results are given in Table 5.5.

164

TABLE 5.5

AGE AND LEVEL OF SATISFACTION: CHI-SQUARE TEST


Banks

Private Sector

Banks




Inference Significant Not Significant



It is clearly evident from Table 5.5 that in the case of public sector banks,

the calculated value is greater than the table value. Hence, the null hypothesis is

rejected. Therefore, it could be inferred that the age influences the satisfaction of

the customers towards internet banking services.

In the case of private sector banks also the calculated value is less than the

table value, and hence the null hypothesis is accepted. Therefore, it could be

inferred that the age does not influence the satisfaction of the customers towards

internet banking services.

5.2.4. Educational Qualification and Levels of Satisfaction

Education is a vital factor which influences the satisfaction of the

respondents. Independent identity of respondents can be proved only through

education. Qualification of respondents and their level of satisfaction are shown

in Table 5.6.

165

TABLE 5.6

EDUCATIONAL QUALIFICATION OF THE RESPONDENTS AND


Sl.

No

Educa-

tional

Quali-

fication



1. Graduate 34

(66.70)

125

(57.30)

15

(48.40)

174

(58.00)

15

(46.90)

146

(61.60)

19

(60.30)

180

(60.00)

2. Post Graduate

13

(25.50)

56

(25.70)

9

(29.00)

78

(26.00)

16

(50.00)

79

(33.30)

10

(32.30)

105

(35.00)

3. Others 4

(7.80)

37

(17.00)

7

(22.60)

48

(16.00)

1

(3.10)

12

(5.10)

2

(6.40)

15

(5.00)

Total 51

(100.00)

218

(100.00)

31

(100.00)

300

(100.0)

32

(100.00)

237

(100.0)

31

(100.0)

300

(100.0)



It is revealed from Table 5.6 that in the case of public sector banks, out of

51 customers with high level of satisfaction, maximum of 34 (66.70 per cent) are

in the category of graduate level followed by 13 (25.50 per cent) in the category of

post graduate level and only 4 (7.80 per cent) in the category of others. In the

case of medium level of satisfaction, out of 218 sample respondents, maximum of

125 (57.30 per cent) respondents are in the category of graduate level followed by

56 (25.70 per cent) in the category of post graduate level and 37 (17.00 per cent)

in the category of others. Out of 31 respondents with low level of satisfaction,

maximum of 15 (48.40 per cent) respondents are in the category of graduate level

followed by 9 (29.00 per cent) in the category of post graduate level and 7 (22.60

per cent) in the category of others.

166


satisfaction, maximum of 16 (50.00 per cent) respondents are in the category of

post graduate level followed by 15 (46.90 per cent) in the category of graduate

level and only one (3.10 per cent) is in the category of others. In the case of

medium level of satisfaction, out of 237 respondents, maximum of 146 (61.60 per

cent) respondents are in the category of graduate level followed by 79 (33.30 per

cent) in the category of post graduate level and 12 (5.10 per cent) in the category

of others. Out of 31 respondents with low level satisfaction, maximum of 19

(60.30 per cent) respondents are in the category of graduate level followed by 10

(32.30 per cent) in the category of post graduate level and only 2 (6.40 per cent)

are in the category of others.

For finding out the relationship between educational qualification and

level of satisfaction towards internet banking services, the following null

hypothesis is formulated: “There is no relationship between educational

qualifications and level of satisfaction among the respondents”. To test the

above hypothesis, Chi-square test is applied. The computed results of Chi-Square

test are presented in Table 5.7.

167

TABLE 5.7

EDUCATIONAL QUALIFICATIONS AND LEVELS OF SATISFACTION:

CHI-SQUARE TEST


Banks

Private Sector

Banks







It is clearly evident from Table 5.7 that, in case of public and private sector

banks, the calculated Chi-Square values is less than the table values. Therefore,

the null hypothesis is accepted. Hence, it could be inferred that the educational

qualification does not influence the satisfaction of the respondents towards the

internet banking services.

5.2.5. Profession and Levels of Satisfaction

Level of satisfaction also depends upon the occupation or profession of the

customers. The researcher has made an attempt to study the relationship between

profession and level of satisfaction of the respondents. Profession of the

respondents and their level of satisfaction are shown in Table 5.8.

168

TABLE 5.8

ASSOCIATION BETWEEN PROFESSION OF THE RESPONDENTS AND

THEIR LEVELS OF SATISFACTION

Sl.

No.

Occu-

pation



1. Govt. Emp-loyees

6

(11.80)

51

(23.40)

3

(9.70)

60

(20.00)

6

(18.80)

38

(16.00)

--

44

(14.70)

2. Businessmen

1

(2.00)

16

(7.30)

8

(25.80)

25

(8.30)

3

(9.40)

39

(16.50)

5

(16.10)

47

(15.70)

3. Private Com-pany employees

7

(13.70)

35

(16.10)

7

(22.60)

49

(16.30)

9

(28.10)

69

(29.10)

16

(51.60)

94

(31.30)

4. House-wives

3

(5.90)

9

(4.10)

2

(6.50)

14

(4.70)

1

(3.10)

10

(4.20)

1

(3.20)

12

(4.00)

5. Retired Persons

6

(11.80)

7

(3.20)

--

13

(4.30)

--

4

(1.70) --

4

(1.30)

6. Bank Emp-loyees

23

(45.10)

69

(31.70)

7

(22.60)

99

(33.00)

12

(37.50)

42

(17.70)

4

(12.90)

58

(19.30)

7. Doctors 2

(3.90)

4

(1.80) -

6

(2.00) --

2

(0.80) --

2

(0.7)

8. Teachers 2

(3.90)

15

(6.90)

3

(9.70)

20

(6.70)

1

(3.10)

23

(9.70)

5

(16.10)

29

(9.70)

9. Students 1

(2.00)

12

(5.50)

1

(3.20)

14

(4.70) --

10

(4.20) --

10

(3.30)

Total 51

(100.00)

218

(100.00)

31

(100.00)

300

(100.0)

32

(100.00)

237

(100.0)

31

(100.0)

300

(100.0)



From Table 5.8, it is revealed that in the case of public sector banks, out of

51 customers with high level of satisfaction, maximum of 23 respondents (45.10

per cent) who are bank employees followed by 7 respondents (13.70 per cent)

private company employees and 6 respondents each (11.80 per cent) are

169

government employees and retired persons. In the case of medium level of

satisfaction, out of 218 respondents, maximum of 69 (31.70 per cent) respondents

are bank employees followed by 51 respondents (23.40 per cent) who are

government employees and 35 (16.10 per cent) private company employees.

Further, it also shows that out of 31 respondents with low level satisfaction,

maximum of 8 (25.80 per cent) of them are businessmen followed by 7 (22.60 per

cent) each of private company employees and bank employees respectively.


satisfaction, maximum of 12 (37.50 per cent) are bank employees followed by 9

(28.10 per cent) private company employees and 6 (18.80 per cent) government

employees. In the case of medium level of satisfaction, out of 237 respondents,

maximum of 69 (29.10 per cent) are private company employees followed by 42

(17.70 per cent) bank employees, 39 (16.50 per cent) businessmen and 38 (16.00

per cent) government employees. It also shows that in the case of low level of

satisfaction, out of 31 respondents, maximum of 16 (51.60 per cent) are private

company employees followed by 5(16.10 per cent) each of businessmen and

teachers respectively.

For finding out the relationship between profession and level of

satisfaction, the following null hypothesis is formulated: “There is no

relationship between profession and levels of satisfaction of the respondents”.

To test the above hypothesis, Chi-square test is applied. The computed results of

Chi-Square test are presented in Table 5.9.

170

TABLE 5.9

PROFESSION AND LEVEL OF SATISFACTION:

CHI-SQUARE TEST


Banks

Private Sector

Banks




Inference Significant Not Significant



It is clearly evident from Table 5.9 that in the case of public sector banks,

the calculated Chi-Square value is greater than the table value at 5 per cent level.

Hence, the null hypothesis is rejected. Therefore, it could be inferred that there is

a relationship between profession and levels of satisfaction of the customers

towards the internet banking services.

In the case of private sector banks, the calculated Chi-Square value is less

than the table value at 5 per cent level. Hence, the null hypothesis is accepted.

Therefore, it could be inferred that there is no relationship between profession

and levels of satisfaction of the customers towards the internet banking services.

5.2.6 Monthly Income and Levels of Satisfaction

Levels of satisfaction may also depend upon the monthly income of the

respondents. Hence, an attempt is made to study the relationship between

171

monthly income and level of satisfaction of the respondents. The monthly income

of the sample respondents and their level of satisfaction are shown in Table 5.10.

TABLE 5.10

MONTHLY INCOME AND LEVELS OF SATISFACTION

Sl.

No.

Monthly

Income

(`)



1. Below

15000

10

(19.60)

53

(24.30)

15

(48.40)

78

(26.00)

3

(9.40)

52

(21.90)

5

(16.10)

60

(20.00)

2. 15000-

30000

17

(33.30)

57

(26.10)

11

(35.50)

85

(28.30)

16

(50.00)

94

(39.70)

23

(74.20)

133

(44.30)

3. 30000-

45000

15

(29.40)

73

(33.50)

5

(16.10)

93

(31.00)

7

(21.90)

55

(23.20)

1

(3.20)

63

(21.00)

4. Above

45000

9

(17.60)

35

(16.10) --

44

(14.70)

6

(18.80)

36

(15.20)

2

(6.50)

44

(14.70)

Total 51

(100.00)

218

(100.00)

31

(100.00)

300

(100.0)

32

(100.00)

237

(100.0)

31

(100.0)

300

(100.0)



From Table 5.10, it is revealed that in the case of public sector banks, out

of 51 respondents with high level of satisfaction, maximum with 17 (33.30 per

cent) respondents have monthly income between ` 15000 - ` 30000 followed by

15 (29.40 per cent) with monthly income between ` 30000 - ` 45000, 10 (19.60

per cent) with monthly income of below ` 15000 and 9 (17.60 per cent) with

monthly income more than ` 45000. In the case of medium level of satisfaction,

out of 218 respondents, 73 (33.50 per cent) respondents have monthly income

between ` 30000 - ` 45000 followed by 57 (26.10 per cent) with monthly income

between ` 15000 - ` 30000, 53 (24.30 per cent) with monthly income of below `

172

15000 and 35 (16.10 per cent) with monthly income more than ` 45000. Further,

it also shows that out of 31 respondents with low level of satisfaction, majority of

15 (48.40 per cent) respondents have monthly income below ` 15000 followed by

11 (35.50 per cent) with monthly income between ` 15000 - ` 30000 and 5 (16.10

per cent) with monthly income of ` 30000 - ` 45000.


satisfaction, majority of 16 (50.00 per cent) respondents have monthly income

between ` 15000 - ` 30000 followed by 7 (21.90 per cent) with monthly income

between ` 30000 - ` 45000, 6 (18.80 per cent) with monthly income above `

45000 and 3 (9.40 per cent) with monthly income of below ` 15000. In the case

of medium level of satisfaction, out of 237 respondents, majority of 94 (39.70 per

cent) respondents have monthly income between ` 15000 - ` 30000, followed by

55 (23.20 per cent) with monthly income between ` 30000 - ` 45000, 52 (21.90

per cent) with monthly income below ` 15000 and 36 respondents (15.20 per cent)

with monthly income above ` 45000. Further it also shows that out of 31

respondents with low level of satisfaction, majority of 23 (74.20 per cent)

respondents have monthly income between ` 15000 - ` 30000 followed by 5

respondents(16.10 per cent) with monthly income of below ` 15000, 2

respondents (6.50 per cent) with monthly income of more than ` 45000 and only

one (3.20 per cent) with a monthly income of ` 30000 - ` 45000.

In order to test the relationship between monthly income and level of

satisfaction, the following null hypothesis is formulated: “There is no

relationship between monthly income and levels of satisfaction”. To test the

173

above null hypothesis, Chi-Square test is applied. The results are presented in

Table 5.11.

TABLE 5.11

MONTHLY INCOME AND LEVELS OF SATISFACTION:

CHI-SQUARE TEST


Banks

Private Sector

Banks




Inference Significant Significant

*Significant at 5 per cent level.


Table 5.11 reveals that in case of both public sector and private sector

banks, the calculated values of Chi-Square are greater than the table values. It

implies that the null hypothesis is rejected. Hence, it could be inferred that there is

no relationship between monthly income and levels of satisfaction towards

internet banking services provided by the public and private sectors banks in

Tirunelveli district.

5.2.7 Marital Status and Levels of Satisfaction

The levels of satisfaction may also depend upon the marital status of the

respondents. An attempt has been made to study the relationship between marital

status and levels of satisfactions of the respondents. The marital status of the

respondents and their levels of satisfactions are shown in Table 5.12.

174

TABLE 5.12

ASSOCIATION BETWEEN MARITAL STATUS OF THE

RESPONDENTS AND LEVEL OF SATISFACTION

Sl.

No.

Marital

Status



1. Married 40

(78.40)

159

(72.90)

20

(64.50)

219

(73.00)

20

(62.50)

129

(54.40)

21

(67.70)

170

(56.70)

2. Un-

married

11

(21.60)

59

(27.10)

11

(35.50)

81

(27.00)

12

(37.50)

108

(45.60)

10

(32.30)

130

(43.30)

Total 51

(100.00)

218

(100.00)

31

(100.00)

300

(100.0)

32

(100.00)

237

(100.0)

31

(100.0)

300

(100.0)



Table 5.12 reveals that in the case of public sector banks, out of 51

respondents with high level of satisfaction, 40 (78.40 per cent) respondents are

married while 11 (21.60 per cent) are unmarried. In the case of medium level of

satisfaction, out of 218 respondents, 159 (72.90 per cent) are married while 59

(27.10 per cent) are unmarried. Out of 31 respondents with low level of

satisfaction, 20 (64.50 per cent) are married while 11 (35.50 per cent) are

unmarried.


satisfaction, 20 (62.50 per cent) respondents are married while 12 (37.50 per cent)

are unmarried. In the case of medium level of satisfactions, out of 237

respondents, 129 (54.40 per cent) are married while 108 (45.60 per cent) are

unmarried. In the case of low level of satisfaction, out of 31 respondents, 21

(67.70 per cent) are married while 10 (32.30 per cent) are unmarried.

175

With a view to test the following null hypothesis namely, “The levels of

satisfaction is independent of the marital status”, Chi-square test is applied and

the results are shown in Table 5.13.

TABLE 5.13

MARITAL STATUS AND LEVELS OF SATISFACTION:

CHI-SQUARE TEST


Banks

Private Sector

Banks







It is observed from Table 5.13 that in case of both public sector and private

sector banks, the calculated Chi-Square values are less than the table values at

5 per cent level. Hence the null hypothesis is accepted. So, there is no

relationship between marital status and level of satisfaction of the sample

respondents among the public and private sector banks in Tirunelveli district.

5.2.8 Usage of Internet banking and Level of Satisfaction

The usage of internet banking services by the sample customers and their

level of satisfaction are shown in Table 5.14.

176

TABLE 5.14

USAGE OF INTERNET BANKING AND LEVELS OF SATISFACTION

Sl.

No.

Usage in

Years



1. Less than One year

18

(35.30)

64

(29.40)

13

(41.90)

95

(31.70)

6

(18.80)

34

(14.30)

7

(22.60)

47

(15.70)

2. 1 – 2 13

(25.50)

63

(28.90)

9

(29.00)

85

(28.30)

10

(31.20)

83

(35.00)

10

(32.20)

103

(34.30)

3. 2 – 3 8

(15.70)

45

(20.60)

6

(19.40)

59

(19.70)

13

(40.60)

48

(20.30)

7

(22.60)

68

(22.70)

4. More than 3 years

11

(21.50)

46

(21.10)

3

(9.70)

61

(20.30)

3

(9.40)

72

(30.40)

7

(22.60)

82

(27.30)

Total 51

(100.00)

218

(100.00)

31

(100.00)

300

(100.0)

32

(100.00)

237

(100.0)

31

(100.0)

300

(100.0)



From Table 5.14, it is inferred that in the case of public sector banks, out

of 51 respondents with high level of satisfaction, maximum of 18 (35.30 per cent)

respondents are using internet banking for less than one year followed by the

respondents who use the internet banking for 1-2 years, more than 3 years and 2-3

years which constitute 25.50 per cent, 21.50 per cent and 15.70 per cent

respectively. In the case of medium level of satisfaction, out of 218 respondents,

maximum of 64 (29.40 per cent) are using internet banking for less than one year

followed by 63 respondents (28.90 per cent) who use the internet banking for 1-2

years, more than 3 years (21.10 per cent) and 2-3 years which constitute 20.60 per

cent. Out of 31 respondents with low level of satisfaction, maximum of 13 (41.90

per cent) of them are using internet banking for less than one year followed by the

respondents who use internet banking for 1-2 years, 2-3 years and more than 3

177

years which constitute 29.00 per cent, 19.40 per cent and 9.70 per cent

respectively.

In case of private sector banks, out of 32 respondents with high level of

satisfaction, maximum of 13 (40.60 per cent) are using internet banking for 2-3

years followed by the respondents who use the internet banking for 1-2 years, less

than one year and more than 3 years which constitute 31.20 per cent, 18.80 per

cent and 9.40 per cent respectively. In the case of medium level of satisfaction,

out of 237 respondents, maximum of 83 (35.00 per cent) are using internet

banking for 1-2 years followed by the respondents who use the internet banking

for more than 3 years, 2-3 years and less than one year which constitute 30.40 per

cent, 20.30 per cent and 14.30 per cent respectively. Further it also shows that,

out of 31 respondents with low level of satisfaction, maximum of 10 (32.20 per

cent) are using internet banking for 1-2 years followed 7 respondents each (22.60

per cent) by all those using internet banking for less than one year, 2-3 years and

more than 3 years respectively.

In order to test the relationship between usage of internet banking and

level of satisfaction of the respondents, the following null hypothesis is

formulated: “There is no relationship between the usage of internet banking

and levels of satisfaction”. The above null hypothesis is tested by applying Chi-

square test. The computed results are given in Table 5.15.

178

TABLE 5.15

USAGE OF INTERNET BANKING AND LEVELS OF SATISFACTION:

CHI-SQUARE TEST


Banks

Public Sector

Banks






Source: Primary Data

Table 5.15 shows that in the case of both the public and private sector

banks, the calculated Chi-Square values are less than the table values at 5 per cent

level. Hence the established null hypothesis is accepted. It is concluded that

there is no relationship between the usage of internet banking and levels of

satisfaction of the respondents among the public and private sector banks in

Tirunelveli district..

5.3. FACTORS IDENTIFYING CUSTOMERS’ SATISFACTION

TOWARDS INTERNET BANKING

In this section, an attempt is made to identify the factors which are

perceived by the customers towards the internet banking services offered by the

banks. Nineteen statements relating to satisfaction of the customers towards the

internet banking services of banks are selected, so as to identify the significant and

important factors with the help of factor analytical technique.

179

5.3.1. Analytical Framework

The technique adopted to identify and analyse the special attractions that

galvanised the customers in public sector banks and private sector banks is factor

analysis. The principal factor analysis method is mathematically satisfying

because it yields a unique solution to a factor problem. Its major solution feature

is the extraction of maximum amount of variation as each factor is calculated. In

other words, the first extracts the most variance and so on.

Most of the analytical methods produce results in a form that is difficult or

impossible to interpret. Thurstone argued that it is necessary to rotate factor

matrices if one wants to interpret them adequately.

He pointed out that original factor matrices are arbitary in the sense that an

infinite number of reference frames (axes) can be found to reproduce any given

‘R’ Matrix.

There are several methods available for factor analysis. But the principal

factor method with orthogonal varimax rotation is mostly used and widely

available in factor analysis computer programme.

Further orthogonal rotations maintain the independence of factors that is,

the angles between the axes are kept at 90 degrees. One of the final outcomes of a

factor analysis is called rotated factor matrix, a table of co-efficient that expresses

the ratios between the variable and the factors that have been prepared. The sum

of squares of the factor loadings of variable is called communalities (h2).

180

The communality (h2) of a factor is its common factor variance. The

factors with factor loadings of 0.5 or greater are considered as significant factors.

This limit is chosen because it had been judged that factors with less than 50 per

cent common variation with the rotated factor pattern are too weak to report.

In the present study, the principal factor analysis method with orthogonal

varimax rotation is used to identify the significant dimensions of satisfaction of

customers towards the internet banking services provided by public sector banks

and private sector banks.

5.3.2 Testing for Sampling Adequacy – Public Sector Banks

Before extracting the factors, to test the appropriateness of the factor

model, Bartlett’s test of sphericity is used to test the null hypothesis that the

variables are intercorrelated in population. The test statistics of sphericity is based

on a chi-square transformation of the determinant of the correlation matrix.

Another useful statistic is the Kaiser-Meyer Oklin (KMO) test of sampling

adequacy. Small value of the KMO statistic indicates that the correlation between

parts of variable cannot be explained by other variables and that factor analysis

may not be appropriate. Generally, a value greater than 0.5 is desirable.

The correlation matrix is examined carefully and the two tests namely

Bartlett’s test of sphericity and Kaiser-Meyer Oklin test are undertaken to test if it

is judicious to proceed with factor analysis in the present study. The computed

results for public sector banks are given in Table 5.16.

181

TABLE 5.16

MEASURES OF SAMPLING INADEQUACIES – PUBLIC SECTOR

BANKS

Measures Estimated Value

Kaiser-Meyer Oklin Measure of Sampling Adequacy 0.8641

Bartlett’s Test of Sphercity Appropriate Chi-Square 3023.7009

Significance 0.0000


From Table 5.16 it has been observed that the Bartlett’s test is significant

with P=0.000, being less than 0.05. Sampling adequacy measured using the

Kaiser-Mayer Oklin (KMO) of 0.8641 is taken as acceptable. Thus the factor

analysis may be considered an appropriate technique for analysing the data.

Factor analysis is done with 19 variables (item) by orthogonal varimax

rotation for the satisfaction of customers towards the internet services provided by

public sector banks and private sector banks.

5.3.3 Customers’ Satisfaction towards internet services provided by Public

Sector Banks

The rotated factor matrix for the variables relating to the satisfaction of the

customers in public sector banks in the study is given in Table 5.17.

182

TABLE 5.17

ROTATED FACTOR MATRIX – PUBLIC SECTOR BANKS

Sl. No.

Variables Factor 1 Factor 2 Factor 3 Factor 4 Factor 5 h2

1. Internet banking is exactly what I need 0.7793 0.1215 0.0776 -0.0128 0.0374 0.6296

2. I have truly enjoyed Internet banking 0.7548 0.0200 0.3406 0.0999 -0.0474 0.6983

3. I am satisfied with my decision of

purchasing using internet banking 0.7187 0.0928 0.2649 0.1433 0.0154 0.6160

4. The website has adequate security

features 0.6596 0.3879 0.0510 0.2418 0.2158 0.6930

5. I will ask my family and friends to use

internet banking facilities 0.5981 0.1313 0.4415 0.0665 -0.1998 0.6141

6. Bank’s servers perform well 0.5704 0.4148 0.0562 0.2476 0.2088 0.6054

7. The service delivered through the

bank’s website is quick 0.1693 0.8275 0.1551 0.2189 -0.0694 0.7802

8. The bank’s website makes accurate

promises about the services delivered 0.2310 0.7817 0.0812 0.1597 -0.0369 0.6978

9. Customer’s online transaction with the

bank is always accurate 0.1545 0.7701 0.2751 0.1960 0.0344 0.7321

10. When the bank promises to do

something by a certain time, it does so 0.0092 0.6685 0.5001 0.2111 0.0628 0.7454

11. If I had to do transaction again, I

would choose the same internet

banking service of my bank 0.3235 0.2109 0.7066 0.1668 -0.0556 0.6793

12. I am very committed to my

relationship with my bank 0.1708 0.1939 0.6912 0.3211 0.1185 0.6616

13. Internet banking at my bank has really

pleased me 0.3925 0.2238 0.6521 0.1390 -0.0824 0.6553

14. The bank’s site provides a

confirmation of the service ordered 0.3182 0.1725 0.6275 0.2536 0.0237 0.5896

15. I trust this bank 0.0138 0.0464 0.5018 -0.0527 0.1492 0.5887

16. The bank’s site provides quick

confirmation 0.1092 0.1613 0.1533 0.8872 -0.0409 0.8501

17. Internet banking gives prompt

services 0.1813 0.2234 0.0887 0.8341 -0.0116 0.7864

18. The bank’s website performs the

service in the first instance itself 0.0795 0.2475 0.1857 0.7590 0.0449 0.6801

19. I am satisfied with the service of

internet banking 0.0590 -0.0221 0.1424 -0.0037 0.9129 0.8576

Eigen Value 7.3656 1.9784 1.2632 1.1988 1.0163

Percentage Variance 38.80 10.10 6.60 6.30 5.30

Cumulative Percentage 38.80 48.90 55.60 61.90 67.20

183

Table 5.17 gives the loadings received by the factors under F1, F2, F3, F4

and F5 for public sector banks. From the above table, the rotated factor loadings

for the nineteen statements (variables) of satisfaction of customers towards

internet banking services provided by public sector banks are observed. It is clear

from Table 5.17 that all the nineteen statements have been extracted into five

factors namely F1, F2, F3, F4 and F5. The factors with identified new names

which influence satisfaction of customers in public sector banks are discussed

below:

The first factor is designed as “Fulfillment of Customers’ Needs” on the

basis of the loaded variables. Six variables in this category are important with

high factor loading. It indicates that among the various performance scale,

‘Internet banking is exactly what I need (0.7793)’, ‘I have truly enjoyed Internet

banking (0.7548)’, ‘I am satisfied with my decision of purchasing using internet

banking (0.7187)’, ‘The website has adequate security features (0.6596)’, ‘I will

ask my family and friends to use internet banking facilities (0.5981)’ and ‘Bank’s

servers perform well (0.5704)’ are important attributes in this category. Thus, the

fulfillment of customers’ need is identified as an important factor to influence the

customers’ satisfaction towards the internet banking services rendered by the

public sector banks.

The second factor is narrated as “Fast and Accurate Services” on the

basis of the loaded variables. Four variables in this category are important with

high factor loading. It indicates that among the various performance scale, ‘The

service delivered through the bank’s website is quick (0.8275)’, ‘The bank’s

website makes accurate promises about the services delivered (0.7817)’,

‘Customer’s online transaction with the bank is always accurate (0.7701)’ and

184

‘When the bank promises to do something by a certain time, it does so (0.6685)

are important attributes in this category. Thus, the fast and accurate services of

internet facilities is identified as an important factor to influence the customers’

satisfaction towards the internet banking services rendered by the public sector

banks.

The third factor is prescribed as “Choice of Bank and their Services” on

the basis of the loaded variables. Five variables in this category are important

with high factor loading. It indicates that among the various performance scale,

‘If I had to do transaction again, I would choose the same internet banking service

of my bank (0.7066)’, ‘I am very committed to my relationship with my bank

(0.6912)’, ‘Internet banking at my bank has really pleased me (0.6521)’, ‘The

bank’s site provides a confirmation of the service ordered (0.6275)’ and ‘I trust

this bank (0.5018) are the important attributes in this category. Thus, the choice of

the bank and their internet services are identified as an important factor to

influence the customers’ satisfaction towards the internet banking services

rendered by the public sector banks.

The fourth factor is highlighted as “Quick Confirmation and Prompt

Services” on the basis of the loaded variables. Three variables in this category

are important with high factor loading. It indicates that among the various

performance scale, ‘The bank’s site provides quick confirmation (0.8872)’,

‘Internet banking gives prompt services (0.8341)’ and ‘The bank’s website

performs the service in the first instance itself (0.7590)’ are important attributes

in this category. Thus, the quick confirmation of transaction and prompt services

are identified as an important factor to influence the customers’ satisfaction

towards the internet banking services rendered by the public sector banks.

185

The fifth factor is designed as “Satisfaction with the services provided”

on the basis of the loaded variables. One variable in this category is important

with high factor loading. It indicates that among the various performance scale, ‘I

am satisfied with the service of internet banking (0.9129)’ is an important

attributes in this category. Thus, the satisfaction with the services of internet

banking is identified as an important factor to influence the customers’

satisfaction towards the internet banking services provided by the public sector

banks in Tirunelveli district.

Table 5.18 presents the overall highest factor loadings for the satisfaction

of the customers towards internet banking services provided by the public sector

banks.

TABLE 5.18

VARIABLES WITH THE HIGHEST FACTOR LOADINGS FOR THE

SATISFACTION OF CUSTOMER TOWARDS INTERNET BANKING

SERVICES PROVIDED BY PUBLIC SECTOR BANKS

Factors

Names of newly

extracted

dimensions

(Factors)

Selected Statements (Variables) Factor

Loadings

F1 Fulfillment of

customers’ needs

Internet banking is exactly what I

need 0.7793

F2 Fast and accurate

services

The service delivered through the

bank’s website is quick

0.8275

F3 Choice of the banks

and their services

If I had to do transaction again, I


banking service of my bank

0.7066

F4 Quick confirmation

and prompt services

The bank’s site provides quick

confirmation

0.8872

F5 Satisfaction with the

services provided

I am satisfied with the service of

internet banking

0.9219

186

It is clearly evident from Table 5.18 that the statements, ‘Internet banking

is exactly what I need (0.7793)’, ‘The service delivered through the bank’s

website is quick (0.8275)’, ‘If I had to do transaction again, I would choose the

same internet banking service of my bank (0.7066), ‘The bank’s site provides

quick confirmation (0.8872) and ‘I am satisfied with the service of internet

banking (0.9219)’ are the statements with highest factor loading under the

dimensions namely, ‘Fulfillment of customers’ needs (F1)’, ‘Fast and accurate

services (F2)’, ‘Choice of the banks and their services (F3)’, ‘Quick confirmation

and prompt services (F4)’ and ‘Satisfaction with the services provided (F5)

respectively. Hence, it is concluded that these are the identified dimensions

(factors) which influence the satisfaction of the customers towards the internet

banking services provided by public sector banks in Tirunelveli district.

5.3.4 Testing for sampling adequacy – Private Sector Banks

The correlation matrix is examined carefully and the two tests namely

Bartlett’s test of sphericity and Kaiser-Meyer Oklin test are undertaken to test if it

is judicious to proceed with factor analysis in the present study. The computed

results for private sector banks are given in Table 5.19.

TABLE 5.19

MEASURES OF SAMPLING INADEQUACIES – PRIVATE SECTOR

BANKS

Measures Estimated Value

Kaiser-Meyer Oklin Measure of Sampling Adequacy 0.8641

Bartlett’s Test of Sphercity Appropriate Chi-Square 3023.7009

Significance 0.0000


187

From Table 5.19 it has been observed that the Bartlett’s test is significant

with P=0.000, being less than 0.05. Sampling adequacy measured using the

Kaiser-Mayer Oklin (KMO) of 0.8641 is taken as acceptable. Thus the factor

analysis may be considered an appropriate technique for analysing the data.

Factor analysis is done with 19 variables (item) by orthogonal varimax

rotation for the satisfaction of customers towards the internet services provided by

private sector banks.

5.3.3 Customers’ satisfaction towards internet services provided by Private

Sector Banks

The rotated factor matrix for the variables relating to the satisfaction of the

customers in private sector banks in the study is given in Table 5.20.

188

TABLE 5.20

ROTATED FACTOR MATRIX – PRIVATE SECTOR BANK

Sl. No.

Variables Factor

1 Factor

2 Factor

3 Factor

4 Factor

5 h

2

1. I trust this bank 0.8346 0.1396 0.0352 0.2696 0.0085 0.7900

2. I am very committed to my

relationship with my bank 0.7675 0.1167 0.1325 0.2495 0.1199 0.6968

3. The bank’s site provides a confir-

mation to the service ordered 0.7031 0.0907 0.3063 0.0815 0.1616 0.6291

4. If I had to do transaction again, I


banking service of my bank 0.6933 0.1737 0.2943 0.1131 0.1662 0.6378

5. Internet banking at my bank has

really pleased me 0.6631 0.1589 0.3714 -0.0056 0.0995 0.6127

6. The service delivered through the

bank’s website is quick 0.1779 0.8180 0.0074 0.1621 0.0920 0.7355

7. Customer’s online transaction

with the bank is always accurate 0.0888 0.7922 0.1091 0.1724 0.0496 0.6795

8. The bank’s website makes

accurate promises about the

services delivered 0.0190 0.7747 0.1796 -0.0894 0.3100 0.7368

9. When the bank promises to do

something by a certain time, it

does do 0.2987 0.6845 0.0768 0.0845 0.1676 0.5989

10. I am satisfied with the services of

internet banking 0.2597 0.1797 0.7588 0.2163 -0.0299 0.7232

11. I have truly enjoyed internet

banking 0.1963 -0.0531 0.7333 0.3293 0.1655 0.7148

12. I will ask my family and friends

to use internet banking facilities 0.4114 0.2256 0.7218 0.0444 0.1374 0.7619

13. I am satisfied with my decision of

purchasing using internet banking 0.2135 0.1079 0.6660 0.4672 0.1071 0.7304

14. The website has adequate security

features 0.2668 0.1450 0.1257 0.8248 0.0881 0.7961

15. Bank’s servers perform well 0.1523 0.1333 0.2050 0.8158 0.2001 0.7885

16. Internet banking is exactly what I

need 0.1056 0.0598 0.3440 0.7513 0.1412 0.7174

17. The bank’s site provides quick

confirmation 0.1056 0.1329 0.0857 0.1802 0.8487 0.7889

18. The bank’s website performs the

service in the first instance itself 0.1721 0.1035 0.0623 0.0773 0.8199 0.7223

19. Internet banking gives prompt

service 0.0975 0.2826 0.1028 0.1446 0.7985 0.7885

Eigen Value 7.2711 2.2261 1.6759 1.3720 1.0747

Percentage Variance 38.30 11.70 8.80 7.20 5.70

Cumulative Percentage 38.30 50.00 58.80 66.00 71.70

189

Table 5.20 gives the loadings received by the factors under F1, F2, F3, F4

and F5 for private sector banks. Table reveals the rotated factor loadings for the

nineteen statements (variables) of satisfaction of customers towards internet

banking services provided in private sector banks. It is clear from Table 5.20 that

all the nineteen statements are extracted into five factors namely F1, F2, F3, F4

and F5. The factors with identified new names which influence satisfaction of

customers in private sector banks are discussed below:

The first factor is designed as “Confidence and Confirmation of

Services” on the basis of the loaded variables. Five variables in this category are

important with high factor loading. It indicates that among the various

performance scales, ‘I trust this bank (0.8346), ‘I am very committed to my

relationship with my bank (0.7675)’, ‘The bank’s site provides a confirmation to

the service ordered (0.7031)’, ‘If I had to do transaction again, I would choose the

same internet banking service of my bank (0.6933)’ and ‘Internet banking at my

bank has really pleased me (0.6631)’ are important attributes in this category.

Thus, the confidence and confirmation of services provided by the bank is

identified as an important factor to influence the customers satisfaction towards

the internet banking services rendered by the private sector banks.

The second factor is narrated as “Fast and Accurate Services” on the

basis of the loaded variables. Four variables in this category are important with

high factor loading. It indicates that among the various performance scale, ‘The

service delivered through the bank’s website is quick (0.8180)’, ‘Customer’s

online transaction with the bank is always accurate (0.7922)’, ‘The bank’s website

makes accurate promises about the services delivered (0.7747)’ and ‘When the

bank promises to do something by a certain time, it does do (0.6845)’ are

190

important attributes in this category. Thus, the fast and accurate services of

internet facilities is identified as an important factor to influence the customer

satisfaction towards the internet banking services rendered by the private sector

banks.

The third factor is prescribed as “Satisfaction with the services

provided” on the basis of the loaded variables. Four variables in this category are


performance scales, ‘I am satisfied with the services of internet banking (0.7588)’,

‘I have truly enjoyed internet banking (0.7333)’, ‘I will ask my family and friends

to use internet banking facilities (0.7218)’ and ‘I am satisfied with my decision of

purchasing using internet banking (0.6660)’ are important attributes in this

category. Thus, the satisfaction with the services provided by the bank is

identified as an important factor to influence the customers’ satisfaction towards

the internet banking services rendered by the private sector banks.

The fourth factor is highlighted as “Security and Fulfillment of

Customers’ Needs” on the basis of the loaded variables. Three variables in this

category are important with high factor loading. It indicates that among the

various performance scales, ‘The website has adequate security features (0.8248)’,

‘Bank’s servers perform well (0.8158)’ and ‘Internet banking is exactly what I

need (0.7513)’ are important attributes in this category. Thus, the security and

fulfillment of customers’ needs are identified as important factor to influence the

customers’ satisfaction towards the internet banking services rendered by the

private sector banks.

191

The fifth factor is designed as “Quick Confirmation and Prompt

Services” on the basis of the loaded variables. Three variables in this category is


performance scales, ‘The bank’s site provides quick confirmation (0.8487)’, ‘The

bank’s website performs the service in the first instance itself (0.8199)’ and

‘Internet banking gives prompt service (0.7985)’ are important attributes in this

category. Thus, the quick confirmation and prompt services rendered by the banks

is identified as an important factor to influence the customers’ satisfaction towards

the internet banking services provided by the private sector banks in Tirunelveli

district.

Table 5.21 presents the overall highest factor loadings for the satisfaction

of the customers towards internet banking services provided by the private sector

banks.

TABLE 5.21

VARIABLES WITH THE HIGHEST FACTOR LOADINGS FOR THE

SATISFACTION OF CUSTOMERS TOWARDS INTERNET BANKING

SERVICES PROVIDED BY PRIVATE SECTOR BANKS

Factors

Name of newly

extracted dimensions

(Factors)

Selected Statements

(Variables)

Factor

Loadings

F1 Confidence and

confirmation of services I trust this bank 0.8346

F2 Fast and accurate services The service delivered

through the bank’s website is

quick

0.8275

F3 Satisfaction with the

services provided

I am satisfied with the

services of internet banking 0.7066

F4 Security and fulfillment

of customers’ needs

The website has adequate

security features 0.8872

F5 Quick confirmation and

prompt services

The bank’s site provides

quick confirmation 0.9219

192

It is clearly evident from Table 5.21 that the statements, ‘I trust this bank

(0.8346)’. ‘The service delivered through the bank’s website is quick (0.8275)’,

‘I am satisfied with the services of internet banking (0.7066)’, ‘The website has

adequate security features (0.8872)’ and ‘The bank’s site provides quick

confirmation (0.9219)’ are the statements with highest factor loadings under the

dimensions namely, ‘Confidence and confirmation of services (F1)’, ‘Fast and

accurate services (F2)’, ‘Satisfaction with the services provided (F3)’, ‘Security

and fulfillment of customers’ needs (F4)’ and ‘Quick confirmation and prompt

services (F5)’ respectively. Hence, it is concluded that these are the identified

dimensions (factors) which influence the satisfaction of the customers towards the

internet banking services provided by private sector banks in Tirunelveli district.

5.4 IMPACT OF SERVICE COMPONENTS ON OVERALL

SATISFACTION OF CUSTOMERS TOWARDS INTERNET

BANKING

The service components in banking are extracted into five factors for both

public and private sector banks separately. The above said five variables are the

components of services offered by the banks which determine their satisfaction of

the customers. The mean scores of these five variables are taken for analysis as

independent variables. The overall satisfaction mean score is taken as the

dependent variable. The multiple regression model is used to analyse the impact

of independent variables on dependent variables.

The fitted regression model for public sector banks is

Y = a + b1 X1 + b2 X2 + b3 X3+ b4 X4 + b5 X5 + e

Where,

Y = Mean Scores on the overall satisfaction,

193

X1 = Mean Scores on the fulfillment of customers’ needs,

X2 = Mean Scores on the Fast and accurate services,

X3 = Mean Scores on the Choice of the banks and their services,

X4 = Mean Scores on the Quick confirmation and prompt

services,

X5 = Mean Scores on the satisfaction with the services provided,

b1, b2, … b7 = Regression coefficient of independent variables,

a = Intercept and

e = Error term.

The regression analysis has been applied for the public sector banks and

the results are shown in Table 5.22.

TABLE 5.22

IMPACT OF SERVICE COMPONENTS ON OVERALL SATISFACTION

OF CUSTOMERS TOWARDS INTERNET BANKING – PUBLIC SECTOR

BANKS

Sl.

No. Independent Variables

Regression

Coefficient t-Values

1. Fulfillment of customers’ needs 0.2131* 2.3869

2. Fast and accurate services 0.4332* 3.2968

3. Choice of the banks and their services 0.1039 1.2365

4. Quick confirmation and prompt services 0.0968 0.9856

5. Satisfaction with the services provided 0.1442* 2.1092

Constant 1.2963

R2 0.7947

F-Statistics 14.9314*


194

It is found from Table 5.22 that the influencing variables such as

fulfillment of customer’s needs, fast and accurate services and satisfaction with

the services provided are statistically significant at 5 per cent level and these

variables have direct impact on satisfaction of the customers towards internet

banking services provided by the public sector banks. A unit increase in the

above said three variables results in an increase in overall satisfaction by 0.2131,

0.4332 and 0.1442 units respectively. The independent variables explain the

changes in overall satisfaction to the extent of 79.47 per cent.

The fitted regression model for private sector banks is

Y = a + b1 X1 + b2 X2 + b3 X3+ b4 X4 + b5 X5 + e

Where,

Y = Mean Scores on the overall satisfaction,

X1 = Mean Scores on the Confidence and confirmation of

services,

X2 = Mean Scores on the Fast and accurate services,

X3 = Mean Scores on the Satisfaction with the services provided,

X4 = Mean Scores on the Security and fulfillment of customers’

needs,

X5 = Mean Scores on the Quick confirmation and Prompt

Services,

b1, b2, … b7 = Regression coefficient of independent variables,

a = Intercept and

e = Error term.

The regression analysis is applied for the private sector banks and the

results are shown in Table 5.23.

195

TABLE 5.23

IMPACT OF SERVICE COMPONENTS ON OVERALL SATISFACTION

OF CUSTOMERS TOWARDS INTERNET BANKING – PRIVATE

SECTOR BANKS

Sl.

No. Independent Variables

Regression

Coefficient t-Value

1. Confidence and confirmation of services 0.0457 0.9326

2. Fast and accurate services 0.3831* 2.0326

3. Satisfaction with the services provided 0.1944* 3.3645

4. Security and fulfillment of customers’ needs 0.1097 1.3248

5. Quick confirmation and prompt services 0.1331* 2.8473

Constant 2.3194

R2 0.7181

F-Statistics 11.3314*



It is shown from Table 5.23 that the influencing variables such as fast and

accurate services, satisfaction with the services provided and quick confirmation

and prompt services are statistically significant at 5 per cent level and these

variables have direct impact on satisfaction of the customers towards internet

banking services provided by the private sector banks. A unit increase in the

above said three variables results in an increase in overall satisfaction by 0.3831,

0.1944 and 0.1331 units respectively. The changes in overall satisfaction towards

internet banking services are explained by the changes in the independent

variables included to the extent of 71.81 per cent.

196

5.5 REASONS FOR OPENING AN INTERNET BANK ACCOUNT

There are many reasons for opening an internet bank account. The

following are the important reasons for opening an internet bank account among

the public and private sector banks such as ‘convenience’, ‘24 hours service’,

‘anywhere connectivity’, ‘curiosity’, ‘better rates’, ‘safe and secure’, ‘low service

charge’, ‘easy to maintain banking transaction activity’ and ‘online shopping’. In

order to find out the association between category of banks and the reasons for

opening an internet bank account, ‘t’ test is applied and the computed results are

presented in the following Table 5.24.

TABLE 5.24

ASSOCIATION BETWEEN CATEGORY OF BANKS AND THE

REASONS FOR OPENING AN INTERNET BANK ACCOUNT

Sl.

No. Reasons

Mean Scores among

t-value Public

Sector

Banks

Private

Sector

Banks

1. Convenience (24 hours service,

anywhere connectivity)

4.6355 4.5567 1.36

2. Curiosity 4.0200 3.9567 0.75

3. Better rates 3.9867 4.0500 0.82

4. Safe and secure 4.1600 4.1400 0.31

5. Low service charges 4.2233 4.1133 1.42

6. Easy to maintain my banking

transaction activity

4.4367 4.3467 1.61*

7. Online shopping 4.1400 4.2467 1.42

* Indicates that the difference is statistically significant at 5 per cent level.


197

It is inferred from Table 5.24 that out of seven reasons for opening an

internet bank account in public sector and private sector banks, only one reason

that is, ‘easy to maintain my banking transaction activity’ is statistically

significant at 5 per cent level and other reasons are not statistically significant. It

is found that there is an association for the reason ‘easy to maintain my banking

transaction activity’ among the public and private sector banks in Tirunelveli

district.

5.5.1 Reasons for choosing a particular bank for opening an Internet Bank

Account

The following are the important reasons for opening an internet bank

account at the particular bank in the study area such as, ‘I have a traditional bank

account with the same bank’, ‘The brand name of the bank’ and ‘The excellent

service offered by this bank’. Table 5.25 presents the details about the reasons for

selecting a particular bank for opening an internet account.

TABLE 5.25

REASONS FOR CHOOSING A PARTICULAR BANK FOR OPENING AN

INTERNET BANK ACCOUNT

Sl. No.

Reasons Public Sector

Private Sector

Total

1. I have a traditional bank account with the same bank

141

(47.00)

118

(39.30)

259

(43.20)

2. The brand name of the bank 50

(16.70)

58

(19.30)

108

(18.00)

3. The excellent service offered by this bank

109

(36.30)

124

(41.70)

233

(38.80)

Total 300

(100.00)

300

(100.00)

600

(100.00)


Note : Figures in bracket indicate percentage to total.

198

From Table 4.2 it has been observed that out of 600 respondents in total, a

maximum of 259 (43.20 per cent) customers are choosing because of having a

traditional bank account with the same bank and it is followed by the excellent

service offered by the bank and the brand name of the bank which constitute 38.80

per cent and 18.00 per cent respectively.

5.5.2 Problems in choosing the Internet Banking

There are certain problems in choosing the internet banking too. The

following are the important problems in choosing the internet banking among the

public and private sector banks such as ‘privacy policy of the internet banking’,

‘security issue of using the internet banking’, ‘ethical standard of the internet

banking’, ‘willingness of the internet banking to listen to customer’s opinion and

new ideas’, ‘response speed of the internet banking when making the queries or

sending feedback’, ‘ability of internet banking to provide up-to-date information

on products and services’, ‘regulatory control for maintaining honesty’,

‘supervision systems to provide true information to customers and ‘executing

contacts with customers seriously’. In order to find out the association between

category of banks and the problems in choosing internet banking, ‘t’ test is

applied and the computed results are presented in the following Table 5.26.

199

TABLE 5.26

ASSOCIATION BETWEEN CATEGORY OF BANKS AND THE

PROBLEMS IN CHOOSING INTERNET BANKING

Sl.

No. Problems

Mean Scores among

t-value Public

Sector Banks

Private

Sector Banks

1. Privacy policy of the internet banking 9.1000 8.8133 2.31*

2. Security issue of using the internet

banking 9.0267 8.9200 0.88

3. Ethical standard of the internet

banking 8.4800 8.5067 0.20

4. Willingness of the internet banking to

listen to customer’s opinion and new

ideas

8.8600 8.3767 1.44

5. Response speed of the internet

banking when making the queries or

sending feedback

8.7433 8.8627 0.70

6. Ability of internet banking to provide

up-to-date information on products

and services

8.6700 8.5033 1.20

7. Regulatory control for maintaining

honesty 8.6533 8.6100 0.34

8. Supervision systems to provide true

information to customers 8.8233 8.7300 0.82

9. Executing contracts with customers

seriously 8.7233 8.7067 0.13

* Indicates that the difference is statistically significant at 5 per cent level.


It is found from Table 5.26 that out of nine problems in choosing the

internet banking, the problem namely, ‘Privacy policy of the internet banking is

statistically significant at 5 per cent level and the other problems are not

statistically significant.

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