Journal of Internet Banking and Commerce ISSN: 1204-5357
ISSN: 1204-5357
+44-175-271-2024Sadaf Firdous*
Research scholar, Centre for Management studies, Jamia Millia Islamia, New Delhi, India
Rahela Farooqi
Professor, Centre for Management studies, Jamia Millia Islamia, New Delhi, India
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Purpose: To add to the existing knowledge in the electronic banking field of study. To help the banks and policy makers have a better understanding of the internet banking dimensions and their contributions towards customer satisfaction. Especially since not much research has been done in this regard in India which has become the hub of e-banking development after the recent demonetization by the present government, enabling people to go cashless and enhance a digi economy. Design/Methodology/Approach: An exploratory survey with the help of a Likert based questionnaire was conducted to investigate the impact of Internet Banking service quality on customer satisfaction in New Delhi. Judgmental and convenience sampling was used and various kinds of internet banking customers were approached in New Delhi. Data were collected from a sample of 194 internet banking customers. Findings: The result implicated that the internet banking service quality dimensions have a significant impact on the customer satisfaction of internet banking customers. Each of the dimension namely efficiency, system availability, fulfillment, privacy, contact, responsiveness and contact individually contribute 70% to the overall customer satisfaction in internet banking. Originality/value: The paper provides empirical evidence to show that the internet banking service quality dimensions area an important factor to satisfy the customers since each of them is positively related to customer satisfaction. This paper has extended the e-service quality model of eS-qual-eRec-Squal by zeithaml et al. to the banking sector to cater to its needs according to its demands and requirements. Research limitations: The research has contributed to an understanding of the importance of various dimensions that internet banking service quality comprises of and how the impact customer satisfaction. The paper lays a foundation to future research which must not be limited to one geographical area of India but should take into study the other areas where internet banking is widely being adopted given the new economy scenario of India. Practical implications: The research will help the managers of the banks and the policy makers to focus on these factors that tend to have a dominating impact on satisfying the customers. This will result in a better internet banking service quality provided by the banks and that in turn will help retain the existing customers and also gaining the new ones.
Internet Banking Service Quality; Internet Banking; Customer Satisfaction
The technological innovation of electronic channel of service delivery has brought in a level playing field for businesses by eliminating geographical, regulatory, and industrial barriers [1]. In the words of Balachandher et al. [2], this revolution in the market place has set in motion a revolution in the banking sector for the provision of a payment system that is compatible with the demands of the electronic marketplace. According to Awad [3], there are four electronic commerce activities internet users perform. These activities require a banking relationship and are: shopping, banking, investing, and online electronic payment for Internet services. The enormous increase of the internet is changing the way businesses interact with consumers as most businesses are now conducted using the internet. It is this introduction of e-commerce as a means of payment that has urged banks to take a leap from the traditional banking services, offering a service strongly through the medium of internet, which has come to be known as internet banking or e-banking.
Existing literature on internet banking in India indicates that despite its growing use and adoption by many banks, no significant effort has been made to understand whether the customers whom the technology is meant for are satisfied or not [4-6] and what are the demographic characteristics of the ones who have adopted the technology.
Internet banking is an electronic payment system that enables customers of a financial institution to conduct financial transactions on a website operated by the institution, such as a retail bank, virtual bank, credit union or building society. Online banking is also referred as Internet banking, e-banking, virtual banking and by some other terms. This new channel has added a new dimension to the concept of customer satisfaction and how it can be affected in a positive way. All organizations exist and strive to become an integral part of the lives of their customers and therefore always strive harder to keep satisfying their customers through better channels of delivering their offerings. There are many factors which have an impact on customer satisfaction, one of the most important being service quality. Due to the varying nature of the products offered in manufacturing sector and in the services sector the definition and measurement of service quality, it was seen could not be the same for both. Especially, in the present era, with the emergence of internet as a major channel of service delivery, the need for a scale to measure the service quality in electronic media of services was felt strongly. Hence, service quality was taken up by the research scholars specifically in terms of the e-services which lead to the development of various models that helped in measuring e-service quality in the services sector.
Various models of e-service quality have come up as a result of this. The major models that have been established and used to measure the e-service quality are: e-SQ and e-SERVQUAL [1], e-Loyalty, Site qual (Yoo and Donthu), WebQual [7], eTailQ [8], E-S-QUAL AND E-Rec-SQUAL [9], EGOSQ (Agarwal et al.), BANKZOT [10] and many more.
Internet Banking
With the rapid and extensive increase in technology, innovation and telecommunications, new distribution channels in the financial sector are coming up rapidly, in numbers as well as in form, from ATMs, telephone banking, with Internet Banking being one of the latest in the chain of technological wonders. According to Accenture (2005), Internet Banking was thought to signal a revolution in banking distribution. Banks invested heavily in the development of the Internet channel. Mols [11] observed that Internet Banking has experienced explosive growth in many countries and has transformed traditional banking practice inevitability. Internet Banking will continue to revolutionize the current traditional banking industry and offer more opportunity to meet better consumer services through enhanced interaction, data mining and customization in the Internet Banking services concludes.
According to Kalakota and Whinston, online banking was first introduced in the early 1980s in which consumers were provided with an application software program that operates on personal computer (PC) which could be dialled into the bank via a modem, telephone line and operated the programs remotely on the consumer PC. However, due to the lack of Internet users, and costs associated with using online banking, the growth of internet banking experienced a setback. But, in 1990s internet banking made a huge comeback as the most sought after channel of service deliver as the Internet explosion had made customers comfortable with making transactions over the internet around the world. Thus, internet banking became an important channel of delivering the services for the banks and made the transaction and other banking activities much easier for the customers. Internet Banking has been regarded as the most important way to reduce cost and maintain or enhance services for consumers, as recorded by Hua. The banking institutions aim to use internet banking as a tool to lower operational costs, improve banking services to the customers, retain them and expand the customer base. In India, the internet banking was introduced in 1995 by ICICI bank followed shortly by HDFC Bank.
Internet is the cheapest delivery channel for banking products as by using internet as a channel of delivering services banks can reduce the number of branches as well as their staff. Qureshi et al. defined Internet Banking as a process of innovation whereby customers handle their own banking transactions without visiting bank tellers. Recent evidence suggests that an Internet-based consumer banking strategy may be effective, with reports of more profitable, loyal and committed consumers compared with traditional banking consumers (ABA, 2004; Fox, 2005). Therefore, Gartner concluded that banks now regard Internet as an equally important channel as the traditional channels of branches, automated teller machines (ATM), telephone banking and call centers. In the new banking environment, Internet Banking is increasingly managed as an operational activity and an important element of a multi-channel strategy as observed by Black et al.
In this study, to investigate customer satisfaction with service quality in Internet banking, a new approach is adopted in which the dimensions of service quality are derived from the studies of Zeithaml et al. [9]. The frame work of their model called the E-S-QUAL and E-RecS-QUAL has been used to try to understand how various dimensions of e -service quality affect customer satisfaction in internet banking.
E-Service Quality and Internet Banking
As the channels of service delivery shifted from traditional to electronic, the need for a scale to measure the e-service quality was felt. Researchers have developed many scales to evaluate Web sites. A rating scale for websites, called WebQual, was created by Lociacono et al. [7]. This scale was based on twelve dimensions namely: informational fit to task, interaction, trust, response time, design, intuitiveness, visual appeal, innovativeness, flow, emotional appeal, integrated communication, business processes, and substitutability.
Another nine-item scale, called SITEQUAL was developed by Yoo and Donthu for measuring site quality on four dimensions: ease of use, aesthetic design, processing speed, and security. Wolfinbarger et al. [8] develop eTailQ, a 14-item scale containing four factors: Web site design, reliability/fulfilment, privacy/security, and customer service.
Many researchers have tried to use the conventional e-service quality models for the measurement of service quality in internet banking. Models like the one developed by zeithaml et al. [12] namely a four item SITEQUAL scale, which focused mainly on web site characteristics like ease of use, aesthetic design, and security and processing speed. Zeithaml et al. [12] also developed an e-service quality measure (e-SQ) consisting of five dimensions: information availability, ease of use, privacy/security, graphic style, reliability. The above scale was refined by Parasuraman et al. [9], and reduced the above mentioned five dimensions into four, which are as below: efficiency, fulfilment, availability, privacy. They further added another dimension to this scale and created an e-recovery service quality scale (E-RecSQUAL) consisting of 11 items on three dimensions: Responsiveness, Compensation, and Contact.
Lociacono et al. [7] introduced a 12-dimension scale namely WebQual with the following dimensions: informational fit-to-task, tailored communication, and trust, and response time, ease of understanding, intuitive operation, visual appeal, innovativeness, emotional appeal, consistent image, on-line completeness, and relative advantage. Josef et al. studied the impact of these innovative technologies as ATM, telephone and Internet on banking services. They found six primary dimensions of e-banking service quality namely: convenience, accuracy, efficiency, queue management, accessibility, and customization, feedback and complaint management. Also, 87 percent of the Internet banking customers was found to be asking for online possibility of diverse financial transactions, including electronic and automatic payment of their accounts and bills, receiving online monthly account balance, and purchase of shares and insurance policy. Saha et al. [13] studied the relationship between online services and customer satisfaction in Internet banking and found a significant association between the online service quality dimensions fulfilment and efficiency and customer satisfaction with electronic service quality.
Further, Saha et al. [13] identified nine service quality dimensions in internet banking which are efficiency, reliability, responsiveness, fulfilment, privacy, communications, personalization, technology update and logistic/technical equipment. The first five dimensions were tested as a core dimensions in internet banking. Communication and personalization were identified as another two significant service quality dimensions in internet banking. Nupur [14] investigated the impact of variables of e-banking on customer satisfaction in Bangladesh and emphasized that reliability, responsiveness, assurance, empathy and tangibles are the core service quality dimensions for customer satisfaction in e-banking.
E-Service Quality and Customer Satisfaction
The study of satisfaction dates back to research of Cardoazo and Howard and Sheth. These studies are considered to be the starting point of scientific interest in satisfaction, its origin and consequences.
Gronroos believes that Customer satisfaction is a phenomenon of particular importance in the evaluation process of a shopping, consumption, or product or service usage experience and is therefore vital in long term consumer responses. Oliver defined customer satisfaction as a judgment that a product or service feature, or the product or service itself, provide (or is providing) a pleasurable level of consumption related fulfilment, including levels of under or over fulfilment. According to Muffatto et al. Customer satisfaction is considered to be one of the most important competitive factors and as the best indicator of a company’s profitability. Additionally, customer satisfaction will impel company to improve their reputation and image, to reduce customer defection, and enhance attention towards the customer needs. This will lead to creation of barriers to switching, and improvement in business relationships with their customers.
Service quality has been recognized as a dominant factor in keeping competitive advantage and sustaining satisfying relationships with customers. Service quality is one of the factors contributing to customers’ satisfaction judgments. Service quality in banking websites may boost customer satisfaction because in internet banking a customer can access a variety of financial transaction. Ma et al. analysed the factors of website quality that could influence e-banking customer satisfaction in the Chinese commercial banking industry. They found that e-service quality dimension: efficiency, interactivity, security, information, ease of use and content were the key factors to affect customer satisfaction in the e-banking service. Ariff et al. examined the relationship and impact of e-service quality and e-Satisfaction on e-Loyalty in internet banking. They used the modified version of E--S-QUAL-RecS-QUAL instrument to determine e-SQ for internet banking service of a commercial bank in Malaysia. They found that assurance-fulfilment, efficiency-system availability; privacy, contact-responsiveness and website aesthetics and guide are the e-SQ dimensions for the internet banking service. Website aesthetics and Guide, Efficiency-System availability and Contact-Responsiveness were having a positive impact on the E-Satisfaction and E-Satisfaction was positively significant to e-Loyalty. Ibok et al. studied the major determinants of customer satisfaction in internet banking services. They determined five major service quality dimensions that affect the customer satisfaction in Nigeria namely account access, account use, privacy and security, account control, cost/time effectiveness and ease. Awamleh et al., evaluated websites of foreign and local banks in the United Arab Emirates using the Diniz model to and ascertained the factors that influence customer satisfaction of the internet banking service. The factors that influence customer satisfaction were recognized as: convenience, independence, and security of internet banking transactions. Sakhaei et al. [15], investigated the service quality indexes in Internet Banking. They studied the impact of service quality factors of Internet Banking on customer satisfaction in Iran. This study revealed that the Six service quality dimensions namely reliability, efficiency, responsiveness, fulfilment, security/privacy and website design have a meaningful relationship with customer satisfaction in Internet Banking and were the proposed indicators to measure customer satisfaction with service quality customer.
Riquelme et al. studied the attributes of e-service quality which predict customer satisfaction, tried to determine if satisfied customers use more online banking features than less satisfied customers and also tried to identify characteristics of less satisfied customers. They found that satisfaction could be generated by improving courtesy, content, timeliness and product and services offered. The services offered being the most important factor in driving internet banking satisfaction. The findings of the study did not support any relation between more usage of services and satisfaction; neither did it support the association between more usage and satisfaction [16]. Zavareh et al. assessed the use of E-SERVQUAL scale to construct e-Service Quality (e-SQ) for internet banking services. He also attempted to examine the effect of e-SQ on e-Customer Satisfaction. The study findings revealed that efficiency and reliability, fulfilment, security/trust, site aesthetics, responsiveness/contact, and ease of use constitute e-SQ for internet banking services in Iran and signified that security/trust, site aesthetics, and ease of use of the internet banking services have positive effects on e-Customer Satisfaction and also revealed that a significantly positive relationship exists between e-SQ and e-Customer Satisfaction in the internet banking [17-20].
Kayabaşı et al. investigated the structural relationships among electronic service quality, total service quality and total satisfaction. They found a high level positive correlation between the perception of total service quality and the perception of total satisfaction. Responsiveness and security were the dimensions which have the highest effect on e-service quality perception which in turn highly affected the total satisfaction perception.
This study has used the E-S Qual and E-RecS-Qual model developed by Parasuraman et al. [9] as a frame of reference to study the relationship of these e-service quality dimensions and customer satisfaction in the Internet Banking [21]. This model was a refined according to the needs and demands of the banking sector to suit its usage in the study (Figure 1). The model used for the study consists of the following items:
• Efficiency: The ease and speed of accessing and using the site.
• Fulfillment: The extent to which the site’s promises about order delivery and item availability are fulfilled.
• System availability: The correct technical functioning of the site.
• Privacy: The degree to which the site is safe and protects customer information.
• Responsiveness: Effective handling of problems and returns through the site.
• Website design: The degree of ease of navigating through and using the website. Which the site compensates customers for problems.
• Contact: The availability of assistance through telephone or online representatives.
• Based on the above model and its dimensions, a framework was developed for the present study, to develop the relationship between E-service quality in Internet Banking and customer satisfaction.
Figure 1: E-Service Quality - Customer Satisfaction Relationship in Internet Banking.
Objectives
1. To identify the various dimensions of internet banking service quality.
2. To examine the relationship between the customer satisfaction and the various internet banking service quality dimensions.
3. To study the impact of the internet banking service quality dimensions on the satisfaction of customers.
Hypothesis
From the above objectives the following set of hypothesis were framed:
H1: Efficiency has a significant positive association with on Customer Satisfaction
H2: System availability has a significant positive association with Customer Satisfaction
H3: Fulfilment has a significant positive association with Customer Satisfaction
H4: Privacy has a significant positive association with Customer Satisfaction
H5: Responsiveness has a significant positive association with. Customer Satisfaction
H6: Website design has a significant positive association with. Customer Satisfaction
H7: Contact has a significant positive association with Customer Satisfaction
The research was conducted using a structured questionnaire adopted from Parasuraman et al. [9] study, which included the dimensions of E-S Qual and E-RecS-Qual. The questionnaire comprised of four sections [22]:
• Customer demographics: The questions in this section were related to gender, age and education.
• E-S-QUAL scale: Respondents in this section rated the Web site’s performance on each scale item using a 5-point scale (1=strongly disagree, 5=strongly agree).
• E-RecS-QUAL scale: Respondents in this section rated the Web site’s performance on each scale item using a 5-point scale (1=strongly disagree, 5=strongly agree).
• Customer satisfaction: Respondents in this section were asked to rate their satisfaction level with the E-Service quality of the banks using a 5-point scale. (1=strongly disagree, 5=strongly agree).
Sampling
The samples of the survey were people living in New Delhi that have been users of Internet Banking system of SBI and Indian bank for at least one year [23]. This ensured that all respondents had sufficient experience in internet banking. The resulting sample (valid) comprised of 194 valid questionnaires out of 200 people that were asked to participate in the survey.
Data analysis
The data collected through questionnaires was analyzed by testing it through Correlational and regressional analysis. Before conducting correlation on the data collected, it was put to descriptive analysis to reveal the demographic characteristics of the respondents [24].
From the Tables 1 and 2, social-demographic characteristics of respondents indicate that majority of the respondents who used internet banking is less than 25 years of age representing 61.9 percent. The users of internet banking were mostly students, followed by the employees from the private sector, while as the self-employed people and the ones employed in public sector used internet banking the least. The majority of the users were males numbering 37 representing 58.7 percent while only 26 representing 41.3 percent were females. In terms of educational attainment, a great majority of them, that is 44 respondents representing 69.8 percent have were post graduates, while only 30 percent were undergraduates [25-27]. These findings indicate that internet banking users are mostly young males and are mostly individuals with a good level of educational attainment.
Table 1: Frequency.
| 1.1-OCCUPATION | |||||
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Public setor | 38 | 19.6 | 19.6 | 19.6 |
| Private sector | 41 | 21.1 | 21.1 | 40.7 | |
| Business | 5 | 2.6 | 2.6 | 43.3 | |
| Student | 110 | 56.7 | 56.7 | 100.0 | |
| Total | 194 | 100.0 | 100.0 | ||
| 1.2-AGE | |||||
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | <20 years | 2 | 1.0 | 1.0 | 1.0 |
| 20-29 years | 131 | 67.5 | 67.5 | 68.6 | |
| 30-39 years | 40 | 20.6 | 20.6 | 89.2 | |
| 40 and above | 21 | 10.8 | 10.8 | 100.0 | |
| Total | 194 | 100.0 | 100.0 | ||
| 1.3-GENDER | |||||
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Male | 111 | 57.2 | 57.2 | 57.2 |
| Female | 83 | 42.8 | 42.8 | 100.0 | |
| Total | 194 | 100.0 | 100.0 | ||
| 1.4-EDUCATION | |||||
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Secondary/higher secondary | 2 | 1.0 | 1.0 | 1.0 |
| Graduation | 44 | 22.7 | 22.7 | 23.7 | |
| Post-graduation | 129 | 66.5 | 66.5 | 90.2 | |
| Others | 19 | 9.8 | 9.8 | 100.0 | |
| Total | 194 | 100.0 | 100.0 | ||
| 1.5-RESIDENTIAL AREA | |||||
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | Urban | 164 | 84.5 | 84.5 | 84.5 |
| Semi urban | 19 | 9.8 | 9.8 | 94.3 | |
| Rural | 11 | 5.7 | 5.7 | 100.0 | |
| Total | 194 | 100.0 | 100.0 | ||
| 1.6-ANNUAL INCOME | |||||
| Frequency | Percent | Valid Percent | Cumulative Percent | ||
| Valid | <200000 | 73 | 37.6 | 37.6 | 37.6 |
| 200000-400000 | 46 | 23.7 | 23.7 | 61.3 | |
| 400000-600000 | 33 | 17.0 | 17.0 | 78.4 | |
| >600000 | 42 | 21.6 | 21.6 | 100.0 | |
| Total | 194 | 100.0 | 100.0 | ||
Table 2: Correlations.
| EFF | SA | FUL | PRI | RES | CON | WD | CS | |||
|---|---|---|---|---|---|---|---|---|---|---|
| Spearman's rho | EFF | Correlation Coefficient | 1.000 | 0.662** | 0.634** | 0.519** | 0.603** | 0.418** | 0.565** | 0.706** |
| SA | Correlation Coefficient | 0.662** | 1.000 | 0.625** | 0.429** | 0.591** | 0.500** | 0.550** | 0.628** | |
| FUL | Correlation Coefficient | 0.634** | 0.625** | 1.000 | 0.488** | 0.599** | 0.478** | 0.596** | 0.649** | |
| PRI | Correlation Coefficient | 0.519** | 0.429** | 0.488** | 1.000 | 0.458** | 0.479** | 0.432** | 0.679** | |
| RES | Correlation Coefficient | 0.603** | 0.591** | 0.599** | 0.458** | 1.000 | 0.634** | 0.644** | 0.663** | |
| CON | Correlation Coefficient | 0.418** | 0.500** | 0.478** | 0.479** | 0.634** | 1.000 | 0.524** | 0.541** | |
| WD | Correlation Coefficient | 0.565** | 0.550** | 0.596** | 0.432** | 0.644** | 0.524** | 1.000 | 0.703** | |
| CS | Correlation Coefficient | .706** | 0.628** | 0.649** | 0.679** | 0.663** | 0.541** | 0.703** | 1.000 | |
**. Correlation is significant at the 0.01 level (2-tailed).
The correlation analysis showed the various relationships that exist between various service quality dimensions and customer satisfaction in internet banking. The detailed analysis of the correlation matrix is as follows:
Efficiency and Customer Satisfaction
The first variable according to frame of reference discussed in this research is the efficiency of internet system, which refers to the ease of getting into the website of the bank and finding their required products and services associated with it. Analysis of correlation matrix shows that the correlation between efficiency and customer satisfaction is estimated to be 0.706 [28]. This value indicates that there is a very significant and positive correlation between the variables at 70%. This is the most highly correlated dimension with customer satisfaction. The result confirms hypothesis1 which proposed a positive significant relation between efficiency and customer satisfaction, the correlation exists at a confidence level of 0.01.
System Availability and Customer Satisfaction
System availability refers to the correct technical functioning of the site. Analysis of correlation matrix shows that the value of correlation between system availability and customer satisfaction is 0.628. This value indicates that there exists a significant and positive relation between the two which a implying a strong relation between the two. The result obtained, which shows a positive relation between the two at confidence level of 99%, confirms hypothesis 2 which stated that there exists a positive significant relation between system availability and customer satisfaction.
Fulfilment and Customer Satisfaction
Fulfilment is the extent to which the site’s promises about order delivery and item availability are fulfilled. Analysis has shown that the value of correlation is 0.649 which indicates that there is a positive and significant relationship between fulfilment and customer satisfaction. This conforms hypothesis 3 at a significance level of 0.01.
Privacy and Customer Satisfaction
Privacy is the major issue that the banks are now-a-days facing. Privacy includes providing security regarding their personal information, data should not be shared and credit card information should be kept secure. The study shows that privacy and customer satisfaction are positively correlated with each other with the value of correlation being 0.679, revealing a positive and significant correlation, hence confirming hypothesis 4.
Responsiveness and Customer Satisfaction
Responsiveness refers to the customers’ representative services offered to fulfil their requirement, handle their quarries and solve complains etc. customer representative services are very attractive and helpful in solving their problems. It also involves the timeliness i.e. prompt action to the customers’ complains, mailing transactions slips immediately and calling the customer back quickly in order to resolve their matter [29]. Analysis shows that the value of correlation is 0.663 indicating that there is a strong positive relationship between responsiveness and customer satisfaction indicating that as the responsiveness goes higher the customer satisfaction too goes in that higher direction. Confirming hypothesis 5, the relationship between the two dimensions is significant at 0.01.
Contact and Customer Satisfaction
The availability of assistance through telephone or online representatives. This dimensions ha the strongest correlation with customer satisfaction according to the analysis above. The value of correlation between the two is 0.541, which means that the customer are highly satisfied with this dimension and as better contact is established between the bank and the customers the customer satisfaction goes higher significantly [30]. Thus, accepting hypothesis 6 which proposed a positive significant relation between contact and customer satisfaction.
Website Design and Customer Satisfaction
The degree of ease of navigating through and using the website which the site compensates customers for problems (Table 3). According to the correlation matrix, there is a significant and strongly positive relationship between website design and the customer satisfaction in internet banking. Website design has a correlation of 0.704 with customer satisfaction, significant at 0.01, hence confirming hypothesis 7, which proposed the same.
Table 3: Coefficientsa.
| Model | Unstandardized Coefficients | Standardized Coefficients | t | Sig. | ||
|---|---|---|---|---|---|---|
| B | Std. Error | Beta | ||||
| 1 | (Constant) | -.421 | .217 | -1.942 | .054 | |
| EFF | .248 | .070 | .224 | 3.534 | .001 | |
| SA | .084 | .061 | .085 | 1.374 | .171 | |
| FUL | .095 | .064 | .089 | 1.480 | .141 | |
| PRI | .316 | .056 | .275 | 5.606 | .000 | |
| RES | .089 | .054 | .101 | 1.666 | .097 | |
| CON | 7.332E-005 | .040 | .000 | .002 | .999 | |
| WD | .281 | .054 | .292 | 5.213 | .000 | |
a. Dependent Variable: CS
The data was also analysed through regression analysis. Regression analyses helped to understand the impact of the e-service quality dimension on customer satisfaction. The regression analysis results are as follows [31]:
The values of the coefficients in the above Table 3 reveal the dimensions which have the most and the least impact on the customer satisfaction through the p value that exists for each of them. The analyses reveals that efficiency, privacy and website design have the highest impact on customer satisfaction as the value of p is less than 0.05 for all the three dimensions [32]. Hence, it’s concluded that these dimensions namely, that efficiency, privacy and website design contribute most highly towards customer satisfaction. The above results (Table 4).
Table 4: Model Summary.
| Model | R | R Square | Adjusted R Square | Std. Error of the Estimate |
| 1 | .845a | .715 | .704 | .34272 |
a. Predictors: (Constant),WD,PRI,CON,SA,FUL,RES,EFF
b. Dependent Variable : CS
The value of R square at 0.715 shows that the 71% of the variation in the customer satisfaction can be attributed to the e-service quality dimensions while as the other 29.5% of the satisfaction is due to factors other than the e-service quality of the banks. Hence it is clear by the above results that internet banking service quality does have an impact on the customer satisfaction in internet banking in New Delhi.
This research paper aims make an original contribution to the existing knowledge by investigating the impact of internet banking service quality on customer satisfaction in New Delhi, the capital city of India [33,34]. The various dimensions of the internet banking service quality that were taken into consideration while making the study were: Efficiency, System Availability, Fulfilment, Responsiveness, Privacy, Contact and website design. The study revealed that efficiency, privacy and website design are the major integral determinants of internet banking services quality. The empirical results show that there is a direct relationship between internet banking service quality dimensions and customer satisfaction in the banking industry. An understanding of the factors, revealed in the study, allows bank managers and policy makers to undeviating efforts and resources most effectively and efficiently to increase the bank business in the long run and encourage new customers to adopt internet banking and to retain the existing ones.
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