JOURNAL OF COMPUTING, VOLUME 2, ISSUE 7, JULY 2010, ISSN 2151-9617HTTPS://SITES.GOOGLE.COM/SITE/JOURNALOFCOMPUTING/ WWW.JOURNALOFCOMPUTING.ORG 132
2.1 Perceived Value
Customer perceived service has been theoreticallyrepresented as consisting of two dimensions. By  dis-tinguish a process and an outcome dimension, where as makes a distinction between functional and technicalquality. The process of functional quality refers to “how”the service is delivered, while the outcome or technicalquality refers to “what” customers receive, the benefits ofusing the service. In this automated teller machines howmoney is being transacted is functional benefit, easy touse, less time, effectiveness and efficiency over the tradi-tional systems are the benefits that customers receive aretermed as technical benefit.
2.1 Customer Satisfaction
The customers in two ways can derive the satisfactionwith the services. The two forms are overall customersatisfaction and situation-specific customer satisfaction.Overall satisfaction is defined as an evaluation based onthe consumer’s overall experiences with a service provid-er over the period of time . Many people argued thatoverall customer’s satisfaction is highly influenced by thesituation-specific satisfaction. The situation specific satis-faction is understood as an immediate post purchaseevaluation or judgment of the most recent transactionalexperience with the firm . Moreover, the situation-specific satisfaction may be due to their interaction withtechnology or with the companies’ employees. These dif-ferent forms of satisfaction have several advantages.These differences are due to the different managers with-in the organization may be responsible for managing em-ployees versus implementation and maintaining self-service technologies. This conceptualization also recog-nizes that satisfaction is not simply an overall evaluationof a service experience, but an influence of different com-ponents of the service.
2.3 Customer Loyalty
Loyal customers are important, because they contribute tothe profitability of the service provider , , ,. They purchase more than newly acquired customersand can be served with reduced operating costs. Theyprovide free word of mouth and are likely to pay regularprizes. Furthermore, referred customers were found toask for advice and guidance from the loyal customerswho recommended the service to them, thus reducing thecompany’s costs for providing help. Loyalty is predomi-nantly satisfaction driven  and therefore customersatisfaction measurements are believed to give a betterindication of future performance of service firms than, for instance financial and accounting based meas-ures . At the same time it must be noted that not allloyal and satisfied customers need to be profitable to afirm . Hence customer loyalty is one of the importantmeasures to find the successful operation of the company.
2.4 Service Quality
Service quality is considered a multi-attribute construct—the product of the comparison between the consumer’sexpectations and their perceptions of the company’s ac-tions , , . Most of the experts will be in a posi-tion to develop marketing strategies to provide the ser-vice when they know the expectations of service quality.Those expectations, however, can be known before theservice is designed and serve to orient marketing strate-gies, and may be measured when the service is function-ing and compared with the organization’s actions. More-over, when comparing perceptions with expectations, theconsumer takes determined attributes as references. Thisset of items can be grouped into specific dimensions, andtheir detailed study will allow companies to direct theirefforts to improve the quality perceived by consumers.Regarding which dimensions and attributes of the servicethe customer takes as a reference in the evaluation; propose a scale of five dimensions—tangible elements,reliability, response capacity, assurance, and empathy—and 22 explanatory items. Its authors defend its applica-tion to all types of services, and, thus, it represents a basicstructure that can be adapted or complemented to suit theparticular characteristics of each organization , .However, they advise making slight modifications whennecessary to the composition of the items in order toadapt it to a specific scenario. In this research the fiveconstructs are developed based on the SERVQUAL ele-ments.On the basis of literature review hypotheses can beformulated as follows:
The perceived value of Internet banking has positive impact on customer satisfaction.
The perceived value of Internet banking has a positive impact on the customer loyalty.
Service quality of Internet banking has a posi-tive impact on the customer satisfaction.
Service quality of Internet banking has a posi-tive impact on Customer loyalty.
Service Quality of Internet banking has a posi-tively related to the perceived value of Internet Banking.
The customer satisfaction with Internet bank-ing has a positive effect on the customer loyalty to InternetBanking the bank.
Primary data were collected from current and prospectivecustomers of Internet banking services in India. This re-search was conducted through survey of Internet bankingusers of Rajasthan and Uttar Pradesh in India. The res-pondents are users of Internet banking of leading Indianbanks and foreign banks. Predominantly the users areState Bank of India (SBI) and Industrial Credit InvestmentCorporation of India (ICICI) Internet banking users. Thisis largely because of the penetration of Internet bankingof these banks. In order to collect primary research datafrom consumers, a seven-point scale, self-reported ques-tionnaire was developed to measure customer satisfactionand loyalty on Internet banking in India.