CHAPTER 7 HYPOTHESIS Testing, result And …shodhganga.inflibnet.ac.in/bitstream/10603/114206/8/...7.1 Interpretation of Hypothesis testing through Z-Test The formulation of hypothesis

CHAPTER 7

HYPOTHESIS Testing, result And Discussion, conclusion

7.1 Interpretation of Hypothesis testing through Z-

Test

7.1.1 Discussion of Hypothesis testing

7.2 Discussion on Result

7.2.1 Factors of banking customers prospective towards

Real and Internet Banking.

7.2.2 Comparative Analysis of mean perception of

banking Customers towards different identified

factors.

7.3 Fulfillment of Objective

7.4 Area of Further Research

7.5 Conclusion

Chapter 7

Hypothesis Testing, Result and Discussion, Conclusion

FACTORS

HYPOTHESIS

INTERNET

BANKING

REAL

BANKING

Z

VALUE

REJECTED/

NOT

REJECTED Mean S.D. Mean S.D. | Z |

Trustworthy. H01 3.97 1.38 3.29 1.40 2.45 Rejected

Community dignity. H02 4.73 0.44 4.6 0.55 1.31 Not Rejected

Geographical

flexibility.

H03 3.96 0.76 3.40

0.67

3.51 Rejected

Perceived

Transaction

And Information

Security.

H04 4.03 0.63 4.36 0.49 2.33 Rejected

Convenience. H05 4.74 0.46 4.60 0.49 14.8 Rejected

Usefulness. H06 4.76 0.42 4.64 0.52 1.27 Not Rejected

Result

Demonstrability.

H07 4.6 0.53 4.68 0.51 .198 Not Rejected

Table 7.1 Result of Hypotheses Result using z-test analysis

7.1 Interpretation of Hypothesis testing through Z-Test

The formulation of hypothesis is an important stage of every research. It gives

direction to the study besides this it also gives speed to the study. Based on

review of literature and past studies, the Hypotheses were formulated for this

study through empirical investigation discussed below.

On the basis of result of factor analysis to find the result of hypothesis testing

Z-Test to be apply, the result of hypothesis testing shown in below table.

Z table=1.96 at 5% level of significance

7.1.1 Discussion of Hypothesis testing

H01: There exists no significant difference in the mean perception of banking

customer towards ‘Trustworthy’ factor of Internet Banking and Real Banking.

H01: There exist a significant difference in the mean perception of Internet

Banking customers and real banking customers. The Internet Banking

customers have better perception (Mean=3.97) towards the Trustworthy of

Internet Banking services in comparison to real banking customers (Mean=

3.29).

The results of z- test indicated the calculated values of z i.e. 2.45 is found to

be greater than the tabulated values of z i.e. 1.96 at 5% level of significance

which resulted into rejection of null hypothesis.

Null hypothesis stands rejected.


customer towards ‘Community dignity’ factor of Internet Banking and Real

Banking.

H02: No significant difference in the mean perception of Internet Banking

customers and real banking customers in terms of ‘Community dignity’ The

Internet Banking customers(Mean=4.73) have no different perception

towards the Community dignity of Internet Banking services in comparison to

real banking customers (Mean= 4.6).



which resulted into acceptation of null hypothesis.

Zcal (2.45) > Ztab (1.96) at 0.05

Zcal (1.31) < Ztab (1.96)

Null hypothesis stands accepted.


customer towards ‘Geographical Flexibility’ factor of Internet Banking and

Real Banking.



customers have better perception (Mean=3.96) towards the Geographical

Flexibility of Internet Banking services in comparison to real banking

customers.

(Mean= 3.40)





Zcal (3.51) > Ztab (1.96)


customer towards ‘Perceived Transaction & Information Security’ factor of

Internet Banking and Real Banking.



customers have better perception (Mean=4.03) towards the Perceived

Transaction & Information Security of Internet Banking services in

comparison to real banking customers (Mean= 4.36)






customer towards ‘Convenience’ factor of Internet Banking and Real

Banking.



customers have better perception (Mean=4.74) towards the Convenience of

Zcal (2.33) > Ztab (1.96)

Internet Banking services in comparison to real banking customers (Mean=

4.60)






customer towards ‘Usefulness’ factor of Internet Banking and Real Banking.


customers and real banking customers in terms of ‘Usefulness’ The Internet

Banking customers(Mean=4.76) have no different perception towards the

Usefulness of Internet Banking services in comparison to real banking

customers (Mean= 4.64).




Zcal (14.8) > Ztab (1.96)

Zcal (1.27) < Ztab (1.96)



customer towards ‘Result Demonstrability’ factor of Internet Banking and

Real Banking.


customers and real banking customers in terms of ‘Result Demonstrability’

The Internet Banking customers(Mean=4.6) have no different perception

towards the Result Demonstrability of Internet Banking services in

comparison to real banking customers (Mean= 4.68).





7.2 Discussion on Result

Zcal (0.198) > Ztab (1.96)

This section is derived to present

(i) Factors of banking customers prospective towards real and

Internet Banking. (significance of factors)

(ii) Comparative Analysis of Mean Perception of Banking customers

towards different identified factors.

(iii) Fulfillment of objective and area of further research.

7.2.1 Factors of banking customers prospective towards Real and

Internet Banking:

As a result of factor analysis 7 imperative factors of banking customers

prospective towards Real and Internet Banking namely. Trustworthy,

Community dignity, Geographical Flexibility, Perceived Transaction &

Information Security, Convenience, Usefulness, Result Demonstrability.

Factor 1: Trustworthy

Trustworthy refers to the efficiency and the ability of a system to perform its

functions accurately, especially a foolproof system that can work properly.

Making a system to perform its functions accurately and precisely, a

dependable of document issuance of banking transactions should be

considered, thus providing an ability to keep all banking transactions’

information accurately and can serve at a specific time.

“Ms.Varsha Kuchara in his research article59

identified one of the very

important service quality dimensions of Internet Banking service quality is

Trustworthy. The online banking environment has grown tremendously over

the past several years and will continue to grow as financial institutions

continue to strive to allow customers to complete money transfers, pay bills,

and access critical information online. Authenticating customers logging onto

their online banking service has become a crucial concern of financial

institutions.”

“Jun and Cai (2001) identified one of the very important service quality

dimensions of Internet Banking service quality is Trustworthy. The Internet

Banking environment has grown tremendously over the past several years and

will continue to grow as financial institutions continue to strive to allow

customers to complete money transfers, pay bills, and access critical

information online. During this same time, online banking has been plagued

by Internet criminals and fraudsters attempting to steal customer information.

Phishing and other types of attacks have become well known and are widely

used as a means for fraudsters to obtain information from customers and

access online banking accounts. As a result, authenticating customers logging

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Sep 2014 ISSN 2250-1991

onto their online banking service has become a crucial concern of financial

institutions” 60

Factor 2: Community dignity

Status reflects the social significance of practicing internet banking as a mean

to express and enhance one’s self-concept. As a dimension of social

desirability, status measures relative advantage of IB use (Gerrard and

Cunningham, 2003).

“The extent to which reference groups or social influence effects the adoption

of Internet Banking is the focus for consumer behavior studies. In the

consumer behavior literature reference groups or social influence frequently

affect consumer behavior (Fishbein & Ajzen, 1975; Bogozzi, 2000). Rogers

(1983) stated that all innovations carry some degree of uncertainty for the

individual, who is typically unsure of a new idea´s result and thus feels a need

for social reinforcement of his or her attitudes toward the new idea. The

individual wants to know that his or her thinking is on the right track in the

opinion of his or her peers. A study found indicated that reference groups

strongly affected the attitude and behavior of consumers toward online

banking (Pento, 2002)”61

60

Cai,S & Jun M (2003) Internet user perceptions of online services: 13(Six) ,pp 504-509 61

Journal of Electronics Commerce Research Vol Nine No 2 2008

This dimension implies to impression management, i.e., by consuming certain

products or services consumers strive to influence their self-image in the eyes

of other consumers (Holbrook, 1999).

Factor 3: Geographical Flexibility

“Flexible Internet Banking system: Financial institutions have spent a great

deal of time and money developing online banking functionality to allow

customers an easy and flexible way to manage their money (Williamson,

2006). A customer can check balance by logging into banks website through a

user name and password. In this way he can enquire balance, status of

cheques, perform funds transfers, order drafts, request issue of cheque books

etc (Srivastava, 2008)”62

. A customer can check balance by logging into

banks website through a user name and password. In this way he can enquire

balance, status of cheques, perform funds transfers, order drafts, request issue

of cheque books etc

“Liu and Arnett in their study identified time factor as one of the prime factor

that in Internet Banking service quality feature for the customers. Saving time

is an importance factor which influences the customers prefers to use Internet

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Banking. (Beer, 2006). Banks can make the information of products and

services available on their site, which is, an advantageous proposition.”63

Factor 4: Perceived Transaction & Information Security

Security stands for the Trustworthy of Internet Banking and an overall belief

on the part of the user that banking transactions can be completed

confidentially and safely. According to Polatoglu and Ekin (2001),

Security is rated as the most important issue of Internet Banking. There is a

dual requirement to protect customers’ privacy and protect against fraud.

Digital signature is a precautionary measure to prevent malpractices and

tampering the information. It is a form of enhanced authentication

(Williamson, 2006).

“Dr. David Chaum, CEO of DigiCash said that “Security is simply the

protection of interests. People want to protect their own money and bank their

own exposure. The role of government is to maintain the integrity of and

confidence in the whole system. With electronic cash, just as with paper cash

today, it will be the responsibility of government to protect against systemic

risk. This is a serious role that cannot be left to the micro-economic interests

of commercial organizations.”64

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E-Banking in development Economy : Journal of Applied Quantitative Methods Vol 5 No 2 2010 64

www.studymode.com\essay\E-Banking Security

http://www.studymode.com/essay/E-Banking

Security comprises of three dimensions – Trustworthy, safety, and privacy.

Consumers’ concerns about security, which arise from the use of an open

public network, have been emphasized as the most important factor inhibiting

the adoption and use of Internet Banking (Sathye, 1999; Daniel, 1999; Cox

and Dale, 2001; Howcroft et al., 2002). Security issues have been identified as

significant quality attributes of Internet Banking (Liao and Cheung, 2002; Jun

and Cai, 2001)

Factor 5: Convenience

Convenience means saving time and increasing the efficiency of service as

compared to branch banking. Thus, it can be conceptualized as relative

advantage of adopting new service channel (Polatoglu and Ekin, 2001;

Gerrard and Cunningham, 2003).

Convenience, defined in terms of time savings, 24/7 access and service

quality, is one of the most cited beneficial features of Internet Banking

(Daniel, 1999; Liao and Cheung, 2002). It is one of the dominating factors in

transaction channel preferences (Ramsay and Smith, 1999) and a key

determinant of consumer satisfaction (Yang et al., 2003). Consumers are

prone to prefer more leisure-time, dedicating less time to financial matters

(Devlin, 1995).

Anytime and anywhere banking facility: Internet Banking users say that

convenience is the most important factor, Internet Banking lets them access

their accounts from anywhere and at any time (IAMAI’s, 2006)

Internet Banking users say that convenience is the most important factor;

Internet Banking lets them access their accounts from anywhere and at any

time (Maholtra and Singh, 2007)

The main benefit offered by Internet Banking is that it is very convenient to

conduct all finance related transactions from any location. This is

advantageous to all those who do not have the time to visit a traditional bank.

In addition to this, it is best to opt for internet banking when basic transactions

need to be carried out such as requesting transfer of funds or requesting bank

account statements as the entire process is faster with internet banking.65

Factor 6: Usefulness

For a corporate user this means how useful does the user find the overall idea

of using the application, and how much it is found to contribute to ones

overall job performance and efficiency. Based on formerly conducted

researches and their results, the more useful the system is seen, the more

likely it is be that the system is also being used.

Ease of use is another important determinant for the customer preferring the

internet banking (Beer, 2006). In a study conducted by Cooper (1997);

65

www.offshoremerchants.net

reported that ease of use of innovative product or service as one of the three

important characteristics for adoption from the customer’s perspective. The

user friendliness of domain names as well as the navigation tools available in

the web-sites is an important determinant for ease of use. The design of the

web-sites with appropriate use of graphical user interface is also considered as

an important determinant. (Cooper, 1997) It is also worth noting that proper

navigation attributes and search facility will also certainly be helpful to

consumers when they surf the Internet. In addition, the level of interactivity of

the site will certainly have an effect on the consumers’ perception of the user

friendliness of the Internet (Suganthi et. al, 2001)

Factor 7: Result Demonstrability

Result Demonstrability means explaining why using Internet Banking may or

may not be beneficial.

7.2.2 Comparative Analysis of Mean Perception of Banking Customers

towards Different Identified Factors.

The present study set total seven hypotheses to investigate the difference in

the mean perception of Internet and real banking customers towards different

parameters of banking. The results of z-test indicated that except three

hypotheses all remaining four hypotheses stands rejected. The study got

difference in the perception in terms of Trustworthy, Geographical flexibility,

Perceived Transaction and Information Security, Convenience factors, while

there is no perception difference was found in terms of Community dignity,

Usefulness and Result Demonstrability factors.

Factor Community dignity in current study shown no significant difference

between Customer perceptions towards Internet Banking over real banking

means the customer who are using both Internet Banking and real banking

find that using of Internet Banking cannot increase its Community dignity

among the society. Also customer perception cannot reflect in terms of

usefulness means customers find both Internet and real baking useful for their

banking transaction. The current study it is also find that there is no difference

in customer perception

To demonstrate result of Internet Banking and real baking i.e. both customer

without difficulty define usage of Internet Banking as well as real banking to

their other people.

But since study reported four rejections hence the discussion for the rejected

hypotheses is as follows-

Internet banks allow 24-hour access to bank accounts and greater control over

fund transfers, especially those involving international transactions. However,

Internet banks, by virtue of their Internet reliant mode of business transactions

also enjoy the reduction in overhead costs and the chance to conduct

operations with fewer branches and easier access to potential customers on a

global basis. As the Internet overcomes physical boundaries, it becomes easier

for Internet banks to attract international clients

Rejection of factor ‘Trustworthy’ from study showed that in customer

prospective Trustworthy in Internet Banking (Mean=3.97) is more favorable

as compare to Real Banking (Mean=3.29) means customer will consider

Internet Banking more trustworthy as compare to real banking.

Rejection of factor ‘Geographical Flexibility’ from study showed that

customers mostly prefer Internet Banking (Mean=3.96) for their financial

transaction as compare to Real Banking (Mean=3.40) because Internet

Banking provide more Geographical Flexibility as compare to Real Banking.

Security of the transactions is the primary concern of the Internet-based

industries. The lack of security may result in serious damages.

Rejection of factor ‘Perceived Transaction & Information Security’ showed

that in customers prospective Internet Banking (Mean=4.03) is as secure as

Real Banking (4.36). in today’s era of Internet Banking provide so many new

technology which make banking more secure , the facility like Digital

Signature , NEFT and RTGS money transfer , plastic money make banking

transaction extra secure for customers.

Rejection of factor ‘Convenience’ indicates that in customer find Internet

Banking (Mean=4.74) more convenient as compare to Real Banking

(Mean=4.60) for their banking transaction. As Internet Banking are also save

time to make fund transfer , other methods to provide financial services to

consumers It includes services such as automated teller machines, telephone

banking, the use of debit and credit cards, smart cards, and Internet banking.

7.3 Fulfillment of Objective (Evaluation of Result )

Before start discussing weather objective of current study fulfill or not, the

objective of the study recounted once again. The present research was thus,

undertaken with the six objectives as guideposts for a comparative study of

customers satisfaction towards E-Banking and also for understanding the

relationship between Internet Banking and real banking.

To study how Internet Banking increases the productivity of an

organization.

To investigate the imperative factors of customers’ perception towards

Internet as well as real banking services.

To compare the perception of Internet Banking users and real banking

users on the basis of different identified factors.

To suggest guidelines to bank to improve the Internet Banking users

base in the light of outcomes of the present study.

To open new vistas of research and develop a base for application of the

findings in terms of implication of the study.

Objective 1:

First objective of current research would suggest bank that how to increase

the productivity after adopting concept of Internet Banking.

Indian economy is witnessing stellar growth over the last few years. There has

been rapid development in infrastructural and business front during the

growth period. Internet adoption among Indians has been increasing over the

last one decade. Indian bank has also risen to the occasion by offering new

channels of delivery to their customers. Internet Banking is gaining popularity

in India and findings of this study allow banks to fine new tune their Internet

Banking product. Based on the finding of this study following suggestion

could be arrived at:

Bank could increase Internet Banking adoption by making their

customer awareness about the usefulness and Trustworthy of the

service. It seen that from the study that the variable Trustworthy and

Usefulness has a positive influence in Internet Banking use, therefore

Internet Banking acceptance would increase when customer find it more

usefulness. Bank should plan their marketing campaigns taking in to

consideration this factor. Proper marketing communication which would

increase consumer awareness would result in better acceptance of

Internet Banking.

The variable convenience had a positive influence on Internet Banking

use. That means customers would increase Internet Banking which they

find it more convenient. Bank should therefore try to develop their

Internet Banking site and interface easier to use. Banks also consider

providing practical training session for customers at their branches on

usage of Internet Banking interface.

Objective 2

Second objective of study investigate the imperative factors of customers’

perception towards Internet as well as real banking services.

The survey of current study by web base method and paper based method

produce empirical confirmation of seven factors which did influence Internet

Banking acceptance. The factor produce by survey were: Trustworthy,

Community dignity, Geographical Flexibility, Perceived Transaction &

Information Security, Convenience, Usefulness, and Result Demonstrability.

Survey instrument was subject to test Trustworthy and construct validity to

check if the factors identified are scientifically valid. The survey instrument

validity test results were satisfactory valid. The survey instrument validity

test results were satisfactory. Literature review of previous study studies also

indicated that these factors played significant role in Internet Banking

adoption in other countries as well. Therefore it could be concluded that

second objective of the study is successfully achieved.

Objective 3

Third objective of study is to compare the perception of Internet Banking

users and real banking users on the basis of different identified factors.

It was observed with the study that significant difference was found in

customer use of Internet Banking and real banking in terms of Trustworthy.

That indicates that in customer prospective Internet Banking is more reliable

as compare to real banking.

It was also seen in study with second variable Community dignity had a

negative influence on Internet Banking use. Which show that customers were

not found that usage of Internet Banking would increase their Community

dignity.

It was also observed with the study that significant difference was found in

customer use of Internet Banking and real banking in terms of Perceived

Transaction & Information Security that means customers would find

Internet Banking as secure as real banking. Since security is most important

constraint in Internet Banking so bank should try to mitigate concerns of their

customers in terms of Internet Banking technology to increase customer’s

acceptance. Bank should also take measure trust and privacy of its Internet

Banking infrastructure and procedures. It is seen from the study that variable

Usefulness has a positive influence on Internet Banking.

It was observed with the study that significant difference was found in

customer use of Internet Banking and Real Banking in terms of Geographical

Flexibility that indicates that customer find usage Internet Banking more

flexible as compare to Real Banking.

The study found significant difference was found in customer use of Internet

Banking and Real Banking in terms of Convenience that indicates that usage

of Internet Banking is more convent as compare to real banking.

It was also seen in study that Result Demonstrability has no difference in real

banking as well as Internet Banking. Means customer find no difference to

demonstrate result of Internet Banking and real banking to other user.

In nut shall entire hypotheses framed for the studies were found to be

empirically accepted. Thus it could be concluded that the third objective of the

study has also been successfully achieved.

Objective 4

To suggest guidelines to bank to improve the Internet Banking users base in

the light of outcomes of the present study.

In the light of the outcomes of current research banks can be given valuable

guidelines for setting up their services and products through online channel.

Trustworthy accessed to be one of the key encouragement factors to improve

the Internet customer base. It shows that in customer prospective Internet

Banking is reliable for their banking transaction to keep the faith of customer

towards Internet Banking, electronics law should be increased and promoted

by the bank in order to reduce customers perception of risk.

The results of comparative analysis will help bank segmenting customers on

the basis of explored factors and will help them in developing strategies to

encourage the customers towards Internet Banking. Further the present

research has proposed certain suggestions and implications that could act as

fruitful in setting up guidelines for banking customers.

The researcher also proposes a model of Business Process Reengineering for

predicting Internet Banking acceptance. The finding of study would be useful

for Indian banks in planning and upgrading their Internet Banking service.

Bank could increase Internet Banking adoption by making their customer

awareness about usefulness of the services.

Objective 5

To open up new vistas of research and develop a base for Application of the

findings in terms of implication of the study.

Finding would suggest Banks to plan the strategies & policies keeping the

perception of both real and Internet Banking users in mind. Also it would lead

further research in the area of high technology access medium like Mobile

Banking, Digital Signature, M-Pesa Mobile Banking and Bio Matrix ATM

Internet Banking is a cost-effective delivery channel for financial institutions.

For future research, more similar small and local community banks will be

selected to further collect the information about their newest trends and

development in their Internet Banking operations, to enhance managerial

implications to be learned from current study.

Finally the limitation of the current research opens new the scope of further

researcher.

7.4 Area of Further Research

The issues discussed in the limitations section could be taken as a pointer for

continuing research in this area. Research on customer acceptance of Internet

Banking in India is still in a nascent stage, as such there is a still room for

further investigation in attracting customers towards Internet Banking services

which could many times considered being scope of further research. Some

avenues for continuing study in this exciting field is discussed below:

The factors identified by the researcher could be validated further and

more factors could be considered for better prediction level of the

research.

This study has focused on user who are not yet adopting Internet

Banking services, study suggest factors which support to increase

Internet Banking users in current era, In India most of the customers

who are using Internet Banking services are corporate customers as

compare to individual customers, the future study can be compare

corporate user and individual user in terms of factor influencing their

adoption decisions.

The current studies not cover rural banking sectors and their customers

prospective. So future study also suggests usage of Internet Banking in

rural area.

Current study not much focuses on usage of advance technology involve

in Internet Banking like mobile banking and biometric ATM, M-Pesa

(M for mobile, pesa is Swahili for money). So future study can be

defining usage of this new technology which influencing customers to

their adoption decisions towards Internet Banking.

7.5 Conclusion:

The processes of modernization and innovations in banks have enabled the

globalization of Indian economy. The importance of sophisticated or high

technology for improving the customer service, productivity and operational

efficiency of banks in well-recognized. As a part of their action plans banks in

India have introduced many new techniques and also a considerable degree of

mechanization and computerization in their operations. Internet Banking is

one such new channel which has become available to Indian customers.

Customer’s acceptance of Internet Banking has been good so far. In this study

the research tried to conducted qualitative and quantitative investigation of

customer’s acceptance of real banking and Internet Banking among Indians.

The research tried to identify important factors that affect customers

behavioral indentation for Internet Banking.

The quantitative analysis of the research confirmed that the factors identified

By the researcher viz. Trustworthy, Geographical Flexibility, Convenience,

Usefulness, Result demonstrability concert quality of facility. And Perceived

Transaction & Information Security, Geographical Flexibility did influence

Customer’s behavioral intentions towards Internet Banking. The result shown

That for variables Trustworthy,

Geographical Flexibility, Perceived Transaction & Information Security,

Convenience, had a positive influence on Internet Banking use. Similarly

result showed that three variable Community dignity, Usefulness, Result

Demonstrability. are negative influence on Internet Banking could be

statistically proved. The findings of the study useful for Indian banks in

planning and upgrade their Internet Banking services.

Documents

CHAPTER 7 HYPOTHESIS Testing, result And …shodhganga.inflibnet.ac.in/bitstream/10603/114206/8/...7.1 Interpretation of Hypothesis testing through Z-Test The formulation of hypothesis