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Impact of Customer Services on Sale in Banking Sector






A Thesis Submitted to the
Superior University
In Partial Fulfillment of the Requirements for the Degree of
Masters in Business Administration

By
AMER KARIM
MBP-11041
2012
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Declaration of Originality


I hereby declare that this project is entirely my own work and that any additional sources of
information have been duly cited.
I hereby declare that any Internet sources published or unpublished works from which I have
quoted or draw references fully in the text and in the content list. I understand that failure to do
this will result in failure of this project due to plagiarism.
I understand I may be called for viva and if so must attend. I acknowledge that this is my
responsibility to check whether I am required to attend and that I will be available during the
viva periods.








Signed…………………………………………

Date…………………………………………….

Name of Supervisor……………………………

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DEDICATION

To our loving ―Parents‖
Who gave us life to face the world
And
Our Teachers who gave me knowledge and guidance
And
To all our friends who are always there for us whenever
We
Need them
















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ABSTRACT

As we know that Customer Services play a vital role on sale in Banking Sector. These
requirements are related to all the data that is supposed to be collected and observed through
primary means of my primary organizations. There's no doubt that the Customer Services help us
to satisfy customer and increase sale and profitability in any sector. The aim of this study is to
check the impact of customer service on sale in Banking Sector. I use customer services
(Employee Behavior, ATM Services, Online Banking and Mobile Banking) as independent
variables and bank sale as a dependent variable. I conclude from this research that all
independent variables (Employee Behavior, ATM Services, Online Banking and Mobile
Banking) directly affect the sale of a bank. All independent variables have positive and strong
relationship with dependent variable. So, to increase the Sale of a bank, Manager must provide
all these services to his customers.
Key Words: Employee Behavior, ATM Services, Online Banking, Mobile Banking








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ACKNOWLEDGEMENT

I am very grateful to my ALLAH Almighty who gave me permeation and providing me abilities
to do this work. Then to my parents who gives me chance to join Superior University and
installed values such as persistence and hard work. Then most of all my teachers who coordinate
me mostly MISS KHANSA IREM who has provided me with encouraging words filled with
wisdom and guided. Who gave me their precious time and helped me to learn and apply statistics
in a practical way. There are many people who helped me on the long road to accomplishing this
goal. I have been blessed to be surrounded and supported by people who saw potential in me to
complete this task.







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Table of Contents

Declaration of Originality.................................................................................. I
Dedication ……………………………………………………………………... II
Abstract................................................................................................................ III
Acknowledgment................................................................................................. IV
CHAPTER 1: INTRODUCTION

1.1 Introduction………………………………………………………. 8
1.2 Purpose statement ……………………………………………... 10
1.3 Objectives ……………………………………………………... 11
1.3 Significance …………………………………………………… 11
1.4 Research Question …………………………………………….. 12
1.5 Key Term Definition ………………………………………….. 13
CHAPTER 2: LITERATURE REVIEW

2.1 Literature ………..…………………………………………...…. 14
2.2 Theoretical Model ……..………………………………………. 22
CHAPTER 3: DATA/ METHODOLOGY

3.1 Data ……………………………………………………………. 23
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3.1.1 Data Collection ……………………………………... 23
3.1.2 Population and Sample …………………………….… 23
3.1.3 Sampling Technique ……………….………………… 23
3.2 Methodology …………………………………………………... 24
CHAPTER 4: ANALYSIS

4.1 Reliability Test……………………….….………………… 28
4.1 Frequency Table………………………….….…………………. 31
4.2 Descriptive summary………………………..…………………. 32
4.3 Histogram..……………………………………….……………. 33
4.4 Scatter plot……………………………………………………. 39
4.5 Correlation……………………………………………………. 49
4.6 Regression……………………………………………....…….. 59
CHAPTER 5: DISCUSSION/ CONCLUSION

5.1 Discussion …………………………………………………….. 62
5.2 Conclusion …………………………………………………….. 65
References ……………………………………………………………….….. 66
Appendix …………………………………………………………………… 69



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CHAPTER # 1
INTRODUCTION
1.1. Introduction:
In banking sector, customer services play a vital role to increase the sale. Mostly customers want
high quality services which can save their time and provide importance. Customers want all
those things which create value and provide safety to them. There are some banks those are
provide customer services very well like HBL, SCB and their customer are satisfy with them.
To poor citizens who are not reached by traditional bank branch networks, branchless banking
has great potential to expand the distribution of monetary services (Mas, April 2008). Before the
arrival of modern banking form, there was a system of direct finance where the owner of capital
contracts directly with the investors. So the investors were dealing with the investors directly.
Now banks are dealing in various transactions like collecting, receiving, transferring, lending,
paying, investing and many more in organize to facilitate & achieve excellence in their
consumer‘s insights (Muhammad Tahir, 2008). As we know to increase sale in banking sector,
the customer services play very important role. So the main aim of this research is to develop a
complete conceptual model to measure impact of customer services on sale in the banking sector.
Automated services are defined as the customer‘s overall evaluation of the superiority of the
condition of services through electronic networks such as the internet/online banking, Automated
Teller Machine (ATM) services, and mobile banking (Mohammed Al-Hawari, 2005).
In many countries in Asia, bank managers have been focused on triage for their banking sector,
and many banking improvements have, by requirement, been a practical reaction to evolving
domestic economic problems (Bahadar Shah, 2009). In developed world most of the banks are
providing E-Banking services to their customers which submits normally to ―all forms of
economic transactions relating to profitable activities, as well as both organization and
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individuals that are based upon the processing and broadcast of digitized data, including text,
sound and visual images‖ (Adeel, 2004). Similarly, Ashar (2002) is of view that ―the concept of
anytime, anywhere, anyplace banking is a big handiness for all worried, where online banking is
really making anytime, anywhere, anyplace banking practical‖ (Bahadar Shah, 2009). E-banking
is very useful. It has become today‘s need. Our research has shown that people in generally are
aware of the concept of Banking Customer Services. Consumers are aware of e-banking products
and services in Pakistan. But there is room to make more awareness to consumer in order to full
make of adoption of e-banking in Pakistan, whereas few consumers are actually using the e-
banking products and services (Dar, 2011). The most of the users have concern about their data
privacy and safety. Bank has to take initiative to increase customer orientation by educating them
about new technology and security issues. Government has to provide basic infrastructure
required to access online banking services in order to improve customer satisfaction (AHMAD &
Shahid RASHID, 2011).
There were 40,600 banking offices and less than 2,000 ATMs in 1973. One banking office or
ATM served 3,700 individuals (age 18 and older) in average. ATMs were not intensively used as
there were only five ATMs for each 100 banking offices. There were 63,900 offices and 90,000
ATMs in 1992. Now there are three banking offices or ATMs for each set of 3,700 individuals,
an expansion of convenience per person of over 200 percent. There are now 141 ATMs for each
100 banking offices as a total (Humphrey, 1994). For commercial banks‘ products and services,
advances in IT and telecommunications have certainly introduced new delivery channels. These
new release channels include automated teller machines (ATM‘s), Mobile Banking and Internet
Banking based on proprietary software. The ATM‘s are the most broadly accepted and highly
utilized delivery channel among all of these channels. In Pakistan Mobile Banking has not been
very successful, but internet & ATM has been successful to some extent among corporate
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customers. However, over 60% of the participants have Internet access at home and these
represents have a positive indication for Internet banking in the future (Sidhu,1999).
For the developing world Mobile banking systems may prove to be an important innovation.
However, the true measure of that importance requires multiple studies using multiple
methodologies and multiple theoretical perspectives before the issue of its economic implication
can be fully outlined (Otubu, 2009). Challenge regarding Mobile banking to policy makers and
controllers is twin: Firstly, to support banks and mobile operators to expand solutions that are not
proprietary and secondly, to allow access to possible new entrants that can upset the profitable
business models of the banks and mobile operators (Sultana, 2009).
According to my knowledge and research many researchers have researched about the impact of
customer services on sale in European counties with the same variables (ATM, Online & Mobile
Banking). In Pakistan no one had conduct research with exactly these variables altogether. In
Pakistan, this is first time when I am conducting research about the importance of customer
services on sale with these variables. I am using mix method technique in this research so that I
can cover all deficiencies. Therefore the purpose of this research is to determine the relationship
between customer services and sales in banking sector.
1.2. Purpose Statement:
An even more basic reason for studying customer service is that customer services play a big part
in customer satisfaction, growth and development. The purpose of the study is also identifying
the impact of customer services (Employees Behavior, ATM Services, Online Banking and
Mobile Banking) on sale in Pakistani banks and to find the impact of these factors on new
technology adoption. A survey of bank employees is conducted and the data is analyzed.
Descriptive analysis (mean and standard deviation) and quantitative analysis is performed (factor
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analysis, regression and correlation analysis). Finally, based on the analysis results, conclusion
and recommendations are detailed.
1.3. Objective:
The major objective of this research is
 To determine the impact of Employees Behavior on sale in banking sector.
 To examine the impact of ATM Services on sale in banking sector.
 To Test the impact of Online Banking on sale in banking sector.
 To examine the impact of Mobile Banking on sale in banking sector.

1.4. Significance of Study:
The present research will going to contribute in the following base.
1. This research helps those who will research in future. The researchers can get
knowledge and can use some helping material in their own research. They can take
some idea to search the solution of the problem. They can develop framework
efficiently with the help of this research.

2. This research will add value in researchers and managers knowledge. This research
helps managers to make decisions. Managers can manage the business and solve their
business problems with the help of this work. This research also will be add value to
improve the business.

3. This body of knowledge will helps to the policy makers. This research will helps the
polcy makers to make and manage roles and ragulations for business places and
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business men. Polcy makers can get knowledge about the policies and can make
policies according to latest procedure for the development of business.
1.5. Research Question & Hypothesis:

Research Question:
What is the impact of customer services on sale in banking sector?

Hypothesis:
H
1
= There is relation between employees behavior and sale.
H
0
= There is no relation between employees behavior and sale.
H
1
= There is relation between ATM services and sale.
H
0
= There is no relation between ATM services and sale.
H
1
= There is relation between online banking and sale.
H
0
= There is no relation between online banking and sale.
H
1
= There is relation between mobile banking and sale.
H
0
= There is no relation between mobile banking and sale.



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1.6. Definations:
Employee Behavior:
Employee behavior is very important element of customer service in banking sector. Mostly
bank customers evaluate commercial banks on the bank employee dimension, when they place a
heavy emphasis on positive staff attitude, knowledgeable staff, employee professionalism and
timely employee responses to correspondence.
ATM Services:
ATM is also a way to satisfy the customer and increase sale/profitability. Customer can access to
cash any time 24/7. Bank provides the services to satisfy the customer in which include,
including funds transfer, cash withdrawals, balance enquiries, statement & PIN changing facility
and cheque book requests.
Online Banking:
Online banking (Internet banking or E-banking) allows customers to conduct monetary
transactions on a secure website controlled by the bank. Customer can check the history of his
account through internet any time.
Mobile Banking:
Mobile banking (also known as M-Banking) is a modern way to satisfy the customer. Mobile
banking used by customers for performing payments, account transactions, credit applications
balance checks and other banking transactions through a mobile phone.

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CHAPTER # 2
LITERATURE REVIEW
2.1. Literature:
In banking sector, customer services play a vital role to increase the sale. Mostly customers want
high quality services which can save their time and provide importance. Customers want all
those things which create value and provide safety to them. There are some banks those are
provide customer services very well like HBL, SCB and their customer are satisfy with them. As
we know to increase sale in banking sector, the customer services play very important role. So
the main purpose of this research is to develop a complete conceptual model to measure impact
of customer services such as the employee behavior, Automated Teller Machine (ATM), online
banking and mobile banking on sale in the banking sector. (Mohammed Al-Hawari, 2005)
Employee Behavior:
Employee behavior is very important element of customer service in banking sector. Mostly
bank customers evaluate commercial banks on the bank employee dimension, when they place a
heavy emphasis on positive staff attitude, knowledgeable staff, employee professionalism and
timely employee responses to correspondence. There is a growing need to utilize information
technology (IT) to achieve efficiency, coordination, and communication to given the increasingly
global bank environment (Tai-Kuei Yu, 2009). The high efficiency of private banks can be
attributed to the fact that these banks have a wide branch network, stable retail market size and a
distribution power. Relatively lower efficiency of publicly owned banks alludes to the common
perception that due to lack of motivation and performance-based earnings among employees,
banks are less efficient (AKHTAR, 2002).
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The quality of services is the most important factor that matters a lot in today‘s modern and
successful banking business. All commercial banks are required to offer almost same services
due to uniform policies of the central bank. But the most important phenomenon is that how
these services are provided (Ziethaml, 1996). In the economic system of any country Banks have
their own significant role to play. According to their prescribed roles, various types of banks
perform various functions defined by their memorandums and articles of association (AKHTAR,
2002). Allen and Meyer (1990) identified three types of commitment to an organization:
affective, continuance and normative in a conceptualization and study of employees‘
commitment to an organization. When a strongly committed individual identifies with, is
involved in, and enjoys membership, affective (or emotional) attachment exists in an
organization. In order to make the employees more effective while dealing with the customers
the managers must arrange training programs for them. (Bilal Afsar, 2010). This dimension
reflects the motivation or readiness of employees to provide immediate services to customers. To
employees' working environment customers are very sensitive in service organizations (Brown
KA, 1993). It indicates the employees' knowledge, their ability to convey trust, politeness and
confidence. By ensuring trustworthy behavior and reflection of genuine commitments to service
provision bank can create customer satisfaction. It is found that trust and commitment are critical
factors for customer satisfaction (Ashfaq Ahmad1*, 2010).
ATM Services:
ATM is also a way to satisfy the customer and increase sale/profitability. Customer can access to
cash any time 24/7. In recent years installation of ATMs has been particularly rapid. From 1983
to 1995, ATM growth was 9.3 percent per year but from 1996 to 2002, accelerated to an annual
pace of 15.5 percent. Much of the hastening is due to placing, other than bank offices ATMs in
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locations. For only 26 percent of total U.S. ATMs in 1994, these off-premise ATMs accounted
but now account for 60 percent (Fumiko Hayashi, 2003).
Over the past 20 years (1973–1992), the total number of banks has grown from 40,600 to 63,900,
a development of 57%. This exceeded the 21% growth in the mature (age 18 and older)
population. The number of ATMs (automated teller machines) has grown even more quickly,
from smaller quantity than 2,000 to extra than 90,000 over the similar period of time. As a total,
in 1973, there was one ATM or banking office for 3,700 citizens. There were three banking
offices or ATMs, in 1992, for the similar number of citizens. This increase efficiently tripled the
convenience and accessibility of bank-provided deposit services. In addition, ATMs are typically
―open‖ 24 hours a day, providing even more expediency than a traditional banking office
(Humphrey, 1994). An amount of changes also contain pricing strategies and structures. Over
88% of ATMs add surcharges to users with that ATM‘s owner, whose access card is not
connected, a put into practice practically to no purpose of 10 years ago. Some ATM users
continue to aim to surcharges and a small number of authorities have tried to disallow them,
despite their frequency (Fumiko Hayashi, 2003). Since 1996, ATM networks have permitted
banks to charge non-customers for withdrawing money from their ATMs but ATM fees have
been criticized again and again by consumer politicians and advocates (Stavins, 2000).

ATMs provide many of the most demanded deposit services. In order of importance, these
services include cash withdrawals, transfers between deposit accounts, cash or check deposits
and bill payments. Surveys suggest that in 1991, 1984, and 1975, cash withdrawal accounted for
77% or more of all ATM transactions. Since only 1 percent of ATM transactions represent bill
payments, it would be incorrect to conclude (as some have) that ATMs represent a move to
electronic payments (Humphrey, 1994). Banks without ATMs, or with only a few ATMs, may
feel compelled to charge low foreign fees. They are likely to do this to provide their depositors
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with the same expected costs of access to their deposits as depositors enjoy in banks with many
ATMs (McAndrews). A simple but approximate measure of the ―productivity‖ of a bank‘s
branch office network commonly used in the banking industry is the core deposit/office ratio.
The value of core deposits—demand, savings and small-denomination time deposits—represents
an important banking ―output,‖ while the number of banking offices reflects an important
banking ―input.‖ Indeed, the production of deposit services accounted for 49 percent of all bank
value added during the 1980s, as measured by the allocated costs for physical capital, labor,
materials, and other noninterest expenses, while loans accounted for only 28 percent (Humphrey,
1994).

Online Banking:
Pakistan banking sector has gone through launched Online banking Information System (OBIS)
and fantastic industrial changes (Chandio). Foreign banks in Pakistan in mid of the 1990‘s are
initiators for introducing Online banking practices. Domestic banks also implemented online
banking services like debit cards and ATM cards and the technology in late 90‘s. According to
the description that is provided by (Abid et al., 2006), ―Any use of information and
communication technology and electronic means by a bank to conduct transactions and have
interaction with the stakeholders‖ (Muhammad Shakil AHMAD, 2011). Online banking (Internet
banking or E-banking) allows customers to perform monetary transactions on a safe and secure
website that is operated by the bank. Customer can check the history of his account through
internet any time. Nsouli defines electronic banking as an ―umbrella term‖ for the procedure by
which a client can perform banking transactions without visiting an offline facility by electronic
means. The subsequent conditions refer to one form or another of electronic banking: virtual
banking, Personal Computer (PC) banking, home banking Internet banking and online banking
(SHAFAY SHAMAIL). Importance of internet in the banking system had been realized in its
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early developments and later on it played an important role in the globalization of banking
system (Mavri and Ioannou, 2006). Internet banking service provides customers the facility to
access their accounts and to gather information about the transactions and other services offered
through bank‘s websites without any formal documentation (Thulani D, 2009). It also has the
features of retail banking like balance reporting, inter-account transfer, bill payment etc without
sending and using the original documents and signature at anytime and from anywhere, which
undoubtedly made ease for customers (Ibrahim EE, 2006).
There are more then 18.5 million users of internet services in Pakistan with10.6% penetration
rate and 70% banks are offering internet banking services but adoption rate of the service is very
slow (SBP, 2009). A study conducted by Khan (2007) in Pakistan revealed that due to big
communication gap between the customers and banks, internet banking services are not
matching the customers‘ expectation and needs, in addition to the consumer perception of high
risk, privacy and security issues. Another study by Kaleem (2008) explored the bankers‘
perception about internet banking and revealed that bankers perceive that internet banking in
Pakistan is more risky; lack of information, inconvenience and security issues are perceived to be
other barriers in rapid growth of internet banking (Hassan Danial Aslam, 2011). Banking sector
of Pakistan has invested large amount of funds and has gone through remarkable industrial
changes in improvement of information systems, to decrease cost and to develop their functions
it has launched online banking information systems (OBIS). Both for users and for banks, these
online banking systems are advantageous. By providing high class online banking services to the
customers, banks can get advantage from much minor operating cost as these services have need
of less staff and fewer physical branches (Chandio).
Online banking has transformed and revolutionized traditional financial institutions. The use of
the internet in retail banking has provided financial institutions with a remote distribution
channel. It is believed that online banking has transformed and revolutionized traditional
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financial institutions (Daniel, 1999). The Internet opens up new possibilities for Banks and
moves them from local to global boundary. Internet or online banking refers to systems that
enable bank customers to get common information on bank products and services and get access
to their accounts, without the interference or inconvenience of sending faxes, letters, original
signatures and telephone confirmations through the use of bank‘s website (Rahmath Safeena,
2010). As this medium started grooming, the internet banking has created value for the banks in
terms of enhances customer service, reducing cost, and has increased long-term profit by
allowing customers to carry out transactions online and perform other activities they want from
their homes, offices or from any other remote location that is feasible for them at any time
(Shariq, 2006). Internet banking has created value for the banks as this medium started
grooming, in terms of enhances customer service, reducing cost and has increased long-standing
profit by permitting customers to carry out transactions online and perform other activities at any
time they want from their offices, homes and from any other remote location that is possible for
them (Rahmath Safeena, 2010).
As this medium started grooming, internet banking has created value for the banks in terms of
enhances customer service, reducing cost, and has increased long-term turnover by allowing
customers to present activities such as to carry out transactions online at any time they want from
their homes, offices or from any other remote location that is possible for them (Khan, 2007).
Mobile Banking:
Mobile banking (also known as m-banking, SMS banking etc.) is a term used for performing
account transactions, balance checks, payment, etc by means of mobile machine such as cell
phones. Today, mobile banking is most frequently performing through SMS or mobile Internet,
but mobile banking can also be used by extraordinary programs. Those programs are called
customers downloaded to the mobile device (Otubu, 2009). Mobile machine is generally known
as cell phone and users normally use it as a wireless delivery channel for communication (Zohra
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SALEEM, 2011). Mobile banking will be attractive mainly to the younger, more ―tech savvy‖
customer segment. A third of mobile phone users say that they may consider performing some
kind of financial transaction through their mobile phone. But most of the user is interested in
performing basic transaction such as querying for account balance and making bill payment
(Otubu, 2009). Pakistan has successful growing economy and telecommunication industry of the
country has advanced tremendously in the recent years. The higher use of mobile phone in an
emerging market has intrigued foreign as well as local banks to provide mobile banking services
to its customers (Zohra SALEEM, 2011). The impact of banking industry is expected to show
significant on the mobile Internet trade market. A study indicates by Stewart and Bradley (2003)
that Internet banking is a very significant problem in trade banking. They also conclude that the
Internet would donate as part of multi-channel (bricks and clicks) strategy, rather than as a
standalone (click only) strategy. (Chavidi Naga Sivanand, 2004).
Mobile Banking allows users to make financial transactions or transfers across the state or nation
by using mobile phone funds transfer service, at low cost and conveniently. Access to financial
services and certainly overall financial development is crucial to economic growth and poverty
reduction shows a large body of verification (Mwangi S. Kimenyi, 2009). As mobile technology
has become an increasingly vital element in the services industries, managerial interest in
understanding post adoption user perceptions and the attitudes of different customers as adopters
has led to a call for more academic research (Tai-Kuei Yu, 2009). Services have sprung up that
let people transfer cash by text message to other mobile phone users and give Africa's vast
number of "unbanked" their first access to financial products. Instead of using a bank branch,
these services rely on local retailers who already sell mobile top-up cards (Wray, 2008).
The role that microfinance institutions (MFIs) can play largely depends on the attendance or
nonattendance of broadly available mobile banking services. The MFI world focuses on creating
human-driven infrastructure, low-cost, while the mobile banking world is attached into and uses
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payment systems communications. (Kabir Kumar, 2010). As in the trendy bars of Europe,
Mobile phones are as much a fashion statement here. The mobile phone boom has transformed
ordinary people into micro-entrepreneurs. One of the most famous examples of mobile phone
entrepreneurship is the Village Phone Programmer in Bangladesh. (Anderson, 2007). Associated
with this uptake are presented by the mobile‗s main functions, the clearest benefits by permitting
people to keep in touch, by simple SMS and voice call, mobiles help people coordinate their
economic and social lives and overcome distance. The utility and appeal of mobile phone
banking and payments services via mobile phones for the rising world give the impressions clear
(Donner, 2007).














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2.2. THEORETICAL MODEL















Employee
Behavior
ATM
Services
Online
Banking
Mobile
Banking
Bank Sale
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CHAPTER # 3
DATA & METHODOLOGY

3.1. Data:
3.1.1. Data Collection:
 Primary data requirements
These requirements are related to all the data that is supposed to be collected and observed
through primary means of our primary organizations.
Primary data sources
There are two modes of data collection including Questionnaire and Interview. For our primary
data we would be fill up the questionnaire from those customers who have their account in any
bank in Pakistan especially in Lahore under consideration.
Surveys; Questionnaires
 Secondary data requirements
These requirements for all the secondary data supposed to be used for our research and analysis.
3.1.2. Population and Sample:
According to the requirements of the research, a longitudinal research design will be used. The
data will be collected in three to four months. The data will be collected from those customers
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who have their account in any bank in Lahore. The total respondents are 1000 from all banks in
Lahore and a sample size is almost 150.
3.1.3. Sampling Technique:
To collect the data from the target respondent, random sampling technique will be used and the
data will be collected in the form of questionnaire.
3.2. Methodology:
Type of methodology:
We will use descriptive inferential type of methodology and extract the results from SPSS and
then analyze and compare them with the theoretical basis to check the positive or negative
relationship among different variables. We will apply the following tests,
 Frequency
 Descriptive
 Histogram
 Scatter Plot
 Co-Relation
 Regression

۩ Frequency
Frequency is a type of display of a specified data, in which the frequency of each item is
establish. The number of times it occurs in the data set is the frequency of a data item. By
dividing the scores into intervals and then counting or adding the number of scores in each
interval a frequency table is constructed. The actual numbers of scores as well as the percentage
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of scores in each interval are demonstrated. Frequency table is used to explain the demographic
information/variables like gender, age, education etc. We can calculate frequency and percentage
of respondent through this table or chart.


۩ Descriptive
Descriptive statistics is the discipline of quantitatively explaining the major elements of a data
collection. The main purpose of descriptive statistics is to sum up a data set, rather than use the
data to learn about the population that the data are thought to symbolize. Unlike inferential
statistics, are not developed on the basis of probability theory, this is the commonly means of
descriptive statistics. Even when a data analysis draws, the main conclusions of using statistics is
that descriptive statistics are usually also presented. Descriptive statistics provides simple
summaries about the observations that have been made and about the sample. Descriptive
statistics are used to describe the basic features of the data in a study. They are also used for
Measures of central tendency include the mean, median and mode, while measures of variability
include the standard deviation (or variance), the minimum and maximum variables.

۩ Histogram
A histogram is a graphical representation showing a visual impression of the distribution of data.
It is an estimate of the probability distribution of a continuous variable. A histogram is one of the
most necessary quality tools. It is used to graphically display and summarize the variation and
distribution of a data set procedure. A frequency distribution shows how often each different
value in a set of data occurs. The major aim of a histogram is to explain the arrangement of
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data. The information may be presented in the form of a table. However, usually it makes easier
to see relationships of variables in the graphic presentation format. For breaking out process data
into bins or regions for determining frequencies of assured categories or events of data, it is a
very useful tool. These charts can help show the most frequent.

۩ Scatter Plot
Scatter Plot is a graph that is used to check the relationship between variable A and B. A scatter
plot is used when a variable exists that is under the control of the experimenter. Scatter plots
generally consist of a huge body of data. When plotted to making an instantly line, the higher the
correlation between variables A & B, or the stronger the relationship the closer the data points
come. A scatter plot can suggest various kinds of correlations between variables. This graph also
determines that the relationship is positive or nagative between A and B. If the data points make
in a straight line going from the source out to high x- and y-values, then the variables is
show positive correlation. If the line goes away from a high-value on the y-axis down to a high-
value on the x-axis, then there is a negative correlation between variables.
۩ Correlation
The correlation is one of the most common and most useful statistics. A correlation statistic
describes the degree of relationship between two variables (A & B). To many experienced
investors, correlation is a well-known term. However, its importance in maintaining and
achieving a diversified portfolio, a small number of investors fully understand this term. This
document discusses the importance of continual portfolio monitoring and takes a close look at
correlation analysis. Correlation is a statistical procedure that can demonstrate whether and how
strongly couples of variables are related. Suppose that, height and weights are related; taller
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people have a tendency to be heavier than shorter people. The relation is not perfect. People of
the same height vary in weight, and you can easily think of two people you know where the
shorter one is heavier than the taller one. However, the average weight of people 5'6'' is greater
than the average weight of people 5'5'', and their average weight is a lesser amount of than that of
people 5'7'', etc. Correlation can tell you just how much of the variation in peoples' weights is
related to their heights.
Regression
Regression is a statistical measure that attempts to determine the strength of the relationship
between one dependent variable and a series of other independent variables. Regression
analysis includes many techniques for modeling and analyzing several variables, when the focus
is on the relationship between a dependent variable and one or more independent variables. More
specifically, regression analysis helps one understand how the typical value of the dependent
variable changes when any one of the independent variables is varied, while the other
independent variables are held fixed. Most commonly, regression analysis estimates
the conditional expectation of the dependent variable given the independent variables

Regression Equation:
Y = a + bx
1
+ cx
2
+ dx
3
+ ex
4





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28
CHAPTER # 4
ANALYSIS
Reliability Statistics
Cronbach's alpha is the most common measure of internal consistency ("reliability"). It is most
commonly used when you have Likert questions in a survey/questionnaire that form a scale and
you wish to determine if the scale is reliable.
Reliability Statistics
Cronbach's
Alpha
a

Cronbach's Alpha Based
on Standardized Items
a

N of
Items
.731 .732 9
Interpretation
We can see that in our example, Cronbach's alpha is 0.731, which indicates a high level of
internal consistency for our scale with this specific sample. The minimum acceptable value of
Cronbach‘s alpha is .700, and our result value is 0.731 which is greater than 0.700.
Reliability Statistics
Cronbach's
Alpha
a

Cronbach's Alpha Based
on Standardized Items
a

N of
Items
.790 .719 5
Interpretation
We can see that in our example, Cronbach's alpha is 0.790, which indicates a high level of
internal consistency for our scale with this specific sample. The minimum acceptable value of
Cronbach‘s alpha is .700, and our result value is 0.790 which is greater than 0.700.

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29
Reliability Statistics
Cronbach's
Alpha
a

Cronbach's Alpha Based
on Standardized Items
a

N of
Items
.814 .789 6

Interpretation
We can see that in our example, Cronbach's alpha is 0.814, which indicates a high level of
internal consistency for our scale with this specific sample. The minimum acceptable value of
Cronbach‘s alpha is .700, and our result value is 0.814 which is greater than 0.700.
Reliability Statistics
Cronbach's
Alpha
a

Cronbach's Alpha Based
on Standardized Items
a

N of
Items
.756 .778 6

Interpretation
We can see that in our example, Cronbach's alpha is 0.756, which indicates a high level of
internal consistency for our scale with this specific sample. The minimum acceptable value of
Cronbach‘s alpha is .700, and our result value is 0.756 which is greater than 0.700.





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30
Reliability Statistics
Cronbach's
Alpha
a

Cronbach's Alpha Based
on Standardized Items
a

N of
Items
.737 .730 6

Interpretation
We can see that in our example, Cronbach's alpha is 0.737, which indicates a high level of
internal consistency for our scale with this specific sample. The minimum acceptable value of
Cronbach‘s alpha is .700, and our result value is 0.737 which is greater than 0.700.





















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31
4.1. Frequency Table:

Frequency Percentage
Valid Gender
 Male
 Female
115
35
76.7%
23.3%
Valid






Missing
Age
 18-24
 25-29
 30-34
 35-39
 40-44
 45-Above


65
41
20
9
8
6
1

43.3%
27.3%
13.3%
6.0%
5.3%
4.0%
0.7%
Valid




Missing
Qualification
 Matric
 Intermediate
 Graduate
 Master

21
41
34
52
2

14.0%
27.3%
22.7%
34.7%
1.3%
Valid




Missing
Profession
 Student
 Govt. Emp.
 Private Emp.
 Other

59
24
32
33
2

39.3%
16.0%
21.3%
22.0%
1.3%
Valid I have my account in _______ Bank.
 MCB
 HBL
 BOP
 NBP
 Other

33
47
16
24
30

22.0%
31.3%
10.7%
16.0%
20.0%

Interpretation:
Table 4.1 presents the frequency table that shows the demographical analysis. Number of
observations of each variable is 150. In the above table there are 115 male and 35 female with
the percentage of 76.7% male and 23.3% female. The table also shows age of respondents. There
are 65 respondents 43.3% between 18-24 years old, 41 (27.3%) are between 25-29, 20 (13.3%)
.

32
are between 30-34, 9 (6.0%) are between 35-39, 8 (5.3%) are between 40-44, 6 (4.0%) are 45 or
above and 1 respondent 0.7% is missing.
The frequency table highlights the qualification of the respondents. Table shows that 21
participants 14% those who qualified Matric, 41 (27.3%) are Intermediate, 34 (22.7%) are
Graduate, 52 (34.7%) are Masters and 2 are missing.
The table also describes the profession of the participants. There are 59 (39.3%) respondents
Student, 24 (16.0%) are Govt Employees, 32 (21.3%) are Private Employees, 33 (22.0%) are
others (Advocate, Doctors, Business Man, Housewives etc) and 2 (1.3%) respondents are
missing here too.
At the end the frequency table shows that 33 (22.0%) respondents have there bank account in
MCB, 47 (31.3%) have in HBL, 16 (10.7%) have in BOP, 24 (16.0%) have in NBP and 30
respondents have there bank account in other banks (i.e. Allied Bank, Askari, UBL).

4.2. Descriptive Statistics:
Descriptive Statistics

N Minimum Maximum Mean Std. Deviation
Bank Sale 150 1.75 5.00 3.7283 .64956
Employee Behavior
150 1.67 4.56 3.5640 .55688
ATM Services 150 1.60 4.80 3.5030 .59331
Online Banking 150 1.17 4.67 3.5617 .61271
Mobile Banking 150 1.33 5.00 3.4900 .61646
Valid N (list wise) 150


Interpretation:
.

33
Table 4.1 presents the descriptive statistics that show the overall picture of all the variables.
There were scales of 5 responses that lead to the options (strongly disagree, disagree, neutral,
agree, and strongly agree). Number of observations of each variable is 150. In the above table the
mean values and the values of standard deviation of all the 5 variables have been shown. Mean
value presents the idea about the central propensity of the values of a variable. For example, if
we examine the above output to review the respondent or the average response rate then we
come to identify the mean of different variables like Bank Sale (mean: 3.7283), Employee
Behavior (mean: 3.5640), ATM Services (mean: 3.5030), Online Banking (mean: 3.5617) and
Mobile Banking (mean: 3.4900). If we observe then the average response rate of responded for
all variables is lie with in the option 3-4 (3 is for Neutral and 4 refers to Agree). The minimum
option that is ticked by responded for all variables is lies between 1 and 2, and the maximum
option that is ticked by responded is between 4 and 5.
Standard deviation gives the idea about the dispersion of the values of a variable from its mean
value. So, if we observe then in the response rate for the variable of Employee Behavior is value
of standard deviation is (S.D. 0.55688) which is the lowest value as compare to other variable
values. Which shows that most of the respondent answers were same for the variable of
Employee Behavior and have consistency in their response rate but if we observe then for
Banking Sale intention the value of standard deviation is (S.D 0.64956) which is quite high as
compare to other variables which clearly shows that the response regarding turnover intention of
mostly respondents were not the same and they don‘t have consistency in their answers.
4.3. Histogram:
This shows the graphical representation of the variables with the curve to check the normality
of the response rate. Let‘s discuss the result of each variable‘s histogram one by one
The key scale is provided below
.

34
Strongly Disagree Disagree Neutral Agree Strongly Agree
1 2 3 4 5

4.3.1. Bank Sale

Interpretation:
The fig.1 shows the graphical representation of the bars that is showing the response of the
respondents regarding Bank Sale. Most of the participant‘s lies in the option 3.5 – 4.5 (3 is for
Neutral and 4 is for Agree). Similarly small numbers of respondents were marked very high and
very low options. The bars in the histogram from a distribution (pattern or curve) that is similar
to the Agree. Thus, frequency distribution of the Bank Sale is near about Agree.
4.3.2. Employee Behavior

.

35




Interpretation:
The figure.4.3.2 shows the response of the respondents regarding Employee Behavior. Most of
the participant‘s lies in the option 3 - 4 (3 is for Neutral and 4 is for Agree). Similarly small
numbers of respondents were marked very high and very low options. The bars in the histogram
from a distribution (curve) that is similar to the normal, bell shaped curve. Thus, frequency
distribution of the Employee Behavior is normal.



4.3.3. ATM Services
.

36



Interpretation:

The figure.4.3.3 shows that the response of the respondents regarding ATM Services. Most of
the respondent‘s lies in the option 3 - 4 (3 is for Neutral and 4 is for Agree). Similarly small
numbers of respondents were marked very low and very high options. The bars in the histogram
are normal between 3 and 4. Thus, frequency distribution of the ATM Services is normal.
4.3.4. Online Banking

.

37



Interpretation:

The fig. shows the graph representation of the bars that is showing the response of the
respondents regarding Online Banking. Most of the participant‘s lies in the option 3 – 4.5 (3 is
for Neutral and 4 is for Agree). Similarly small numbers of respondents were marked very low
and a few of them are marked very high options. The bars in the histogram are near to agree.
Thus, frequency distribution of the Online Banking is near to agree.



.

38
4.3.5. Mobile Banking



Interpretation:

The fig. shows the graph of the bars that is showing the response of the respondents regarding
Mobile Banking. Most of the participant‘s lies in the option 3 – 4.5 (3 is for Neutral and 4 is for
Agree). Similarly small numbers of respondents were marked very low and a few are marked
very high options. The bars in the histogram from a distribution (pattern or curve) that is similar
to the normal. Thus, frequency distribution of the Mobile Banking is about normal.
4.4. Scatter Plot:
.

39
Scatter plot or graph of two variables shows how the scores for an individual on one variable
associates with his or her scores on the other variable. Let‘s discuss each plot or graph one by
one

Interpretation:

Figure 4.1.1 shows the results of scatter plot matrix where we intend to have some idea about the
relationship between Bank Sale and Employee Behavior. If we detect then the flow of line is
come from right to left which shows the positive relationship between Bank Sale and Employee
Behavior. This means that good Employee Behavior can be increased sale of a Bank.
Sq Quadratic (0.282) – Sq Linear (0.282) = 0.00 and 0.00<0.05 so we will use Pearson
Correlation to check the relation between Employee Behavior and Bank Sale.
.

40



Interpretation:

Figure 4.4.2 shows the results of scatter plot matrix where we determined to have some idea
about the relationship between Bank Sale and ATM Services. If we examine then the flow of line
is come from right to left which shows the positive relationship between Bank Sale and ATM
Services. It means that if the organization gives high ATM Services then there is also increase
the Sale of a Bank.
Sq Quadratic (0.411) – Sq Linear (0.408) = 0.003 and 0.003<0.05 so we will use Pearson
Correlation to check the relation between ATM Services and Bank Sale.
.

41


Interpretation:
Figure 4.4.3 shows the results of scatter plot where we examine to have some idea about the
relationship between Bank Sale and Online Banking. If we observe then the flow of line is come
from right to left which shows the positive relationship between Bank Sale and Online Banking.
It means that if the Bank provides secure and latest Online Banking Services then the Sale of a
Bank will be increase.
Sq Quadratic (0.36) – Sq Linear (0.356) = 0.004 and 0.004<0.05 so we will use Pearson
Correlation to check the relationship of the two variables (Online Banking and Bank Sale).



.

42


Interpretation:
Figure 4.4.4 illustrates the results of scatter plot matrix. If we determined then the flow of line is
come from right to left which shows the positive relationship between Bank Sale and Mobile
Banking. It means that if the bank gives high Mobile Banking services to the customer, then the
customers will be satisfied by the bank service and the Sale of a Bank also will be increase.
Sq Quadratic (0.34) – Sq Linear (0.328) = 0.012 and 0.012<0.05 so we will use Pearson
Correlation to check the relationship between Mobile Banking and Bank Sale.


.

43


Interpretation:

Figure 4.4.5 explains the results of scatter plot matrix where we determined to have an idea about
the relationship between Employee Behavior and ATM Services. If we observed then the flow of
line is come from right to left which shows the positive relationship between Employee Behavior
and ATM Services. This shows that if the organization/bank provides 24/7 high ATM Services
to the customers, then the most customers will be attract and satisfy by the ATM services of a
bank and the Sale of a Bank will be increase too.
Sq Quadratic (0.136) – Sq Linear (0.127) = 0. 009 and 0.009<0.05 so we will use Pearson
Correlation to check the relationship of Employee Behavior and ATM Services of a bank.
.

44


Interpretation:

Figure 4.4.6 scatter plot matrix shows the results where we can easily understand the relationship
between Employee Behavior and Online Banking. If we observed then the flow of line is come
from right to left which shows that there is positive relationship between Employee Behavior and
Online Banking. It means that the Employee Behavior and Online Banking have positive relation
to satisfy customer and to increase the sale of a Bank.
Sq Quadratic (0.126) – Sq Linear (0.126) = 0. 00 and 0.00<0.05 so we will use Pearson
Correlation to check the relationship of Employee Behavior and Online Banking of a bank.
.

45


Interpretation:

Figure 4.4.7 shows the results of the scatter plot matrix where we determined the relationship
between Employee Behavior and Mobile Banking. If we examine then the flow of line is come
from right to left which shows that there is positive relationship between Employee Behavior and
Mobile Banking. It shows that the Employee Behavior and Online Banking both are positively
impact on satisfaction of customers and to increase the sale of a Bank.
Sq Quadratic (0.19) – Sq Linear (0.189) = 0. 001 and 0.001<0.05 so we will use Pearson
Correlation to check the relationship of Employee Behavior and Mobile Banking of a bank.
.

46

Interpretation:
Figure 4.4.8 highlights the results of scatter plot matrix where we have an idea about the
relationship between ATM Services and Online Banking. If we observed then the flow of line is
come from right to left which shows that there is positive relationship between ATM Services
and Online Banking. It means that ATM Services and Online Banking both have positive
relation and those are the necessary variables to satisfy the customers and increase the sale.
Sq Quadratic (0.294) – Sq Linear (0.293) = 0. 001 and 0.001<0.05 so we will use Pearson
Correlation to check the relationship of ATM Services and Online Banking.
.

47


Interpretation:
Figure 4.4.9 scatter plot matrix shows the results where we determined the relationship of two
variables (ATM Services and Mobile Banking). If we examine then the flow of line is come from
right to left which shows that there is positive relationship between ATM Services and Mobile
Banking. It means that the ATM Services and Mobile Banking have positive relation. Both help
to satisfy customer and to increase the sale of a Bank.
Sq Quadratic (0.365) – Sq Linear (0.36) = 0. 005 and 0.005<0.05 so we will use Pearson
Correlation to check the relationship of ATM Services and Mobile Banking of a bank.
.

48



Interpretation:
Figure 4.4.10 shows the results of the scatter plot matrix where we determined the relationship
between Online Banking and Mobile Banking. If we examine then the flow of line is come from
right to left which shows that there is positive relationship between Online Banking and Mobile
Banking. It shows that the Online Banking and Online Banking both are positively impact on
satisfaction of customers and to increase the sale of a Bank.
Sq Quadratic (0.261) – Sq Linear (0.239) = 0. 022 and 0.022<0.05 so we will use Pearson
Correlation to check the relationship of Online Banking and Mobile Banking of a bank.

.

49
4.5. Correlations:

Correlation is used to check the mutual relationship among variables. For checking the
relationship we will make two hypotheses: null (H0) and alternative (H1). We interpret the
findings on the acceptance or rejection of the hypothesis. We used correlation matrix to check
the mutual relationship of different variables. The hypothesis which we developed are given
below
4.5.1.
Correlations

Bank_Sale Employee_Behavior
Bank_Sale Pearson Correlation
1 .531
**

Sig. (2-tailed)

.000
N 150 150
Employee_Behavior Pearson Correlation
.531
**
1
Sig. (2-tailed) .000

N 150 150
**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation:

Table 4.5.1 represents the table of correlations. To examine if there was a statistically significant
association between sale of Bank Sale and Employee Behavior, a correlation was computed.
Both the variables were approximately normal there is linear relation between them hence
fulfilling the assumption for person correlation. Thus, the person is calculated, r=0.53, p=0.00
relating that there is highly significant relationship between the variables. The positive sign of
the person test value shows that there is positive relationship. Using Cohn‘s (1988) guidelines‘
there is moderate relationship between Bank Sale and Employee Behavior.
.

50

4.5.2.

Correlations
Bank_Sale ATM_Services
Bank_Sale Pearson Correlation 1 .639
**

Sig. (2-tailed) .000
N 150 150
ATM_Services Pearson Correlation .639
**
1
Sig. (2-tailed) .000
N 150 150
**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation:

Table 4.5.2 shows the table of correlations. To examine if there was a statistically significant
association between sale of Bank Sale and ATM Services, a correlation was calculated. Both the
variables were approximately normal, there is linear relation between them hence fulfilling the
assumption for person correlation. Thus, the person is calculated, r=0.64, p=0.00 relating that
there is highly significant relationship between the variables. The positive sign of the person test
value shows that there is positive relationship. Using Cohn‘s (1988) guidelines‘ there is moderate
relationship between Bank Sale and ATM Services.



.

51
4.5.3.
Correlations
Bank_Sale Online_Banking
Bank_Sale Pearson Correlation 1 .597
**

Sig. (2-tailed) .000
N 150 150
Online_Banking Pearson Correlation .597
**
1
Sig. (2-tailed) .000
N 150 150
**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation:

Table 4.5.3 shows the table of correlations. To determine if there was a statistically significant
association between sale of Bank Sale and Online Banking, a correlation was estimated. Both the
variables were approximately normal, there is linear relation between them hence fulfilling the
assumption for person correlation. Thus, the person is calculated, r=0.60, p=0.00 relating that
there is highly significant relationship between the variables (Bank Sale and Online Banking).
The positive sign of the person test value shows that there is positive relationship. Using Cohn‘s
(1988) guidelines‘ there is moderate relationship between Bank Sale and Online Banking.




.

52
4.5.4.

Correlations
Bank_Sale Mobile_Banking
Bank_Sale Pearson Correlation 1 .573
**

Sig. (2-tailed) .000
N 150 150
Mobile_Banking Pearson Correlation .573
**
1
Sig. (2-tailed) .000
N 150 150

Interpretation:

Table 4.5.4 shows the table of correlations. To determine if there was a statistically significant
association between sale of Bank Sale and Mobile Banking, a correlation was computed. Both
the variables were approximately normal, there is linear relation between them hence fulfilling
the assumption for person correlation. Thus, the person is determined, r=0.57, p=0.00 relating
that there is highly significant relationship between the variables (Bank Sale and Mobile
Banking). The positive sign of the person test value shows that there is positive relationship.
Using Cohn‘s (1988) guidelines‘ there is moderate relationship between Bank Sale and Mobile
Banking.




.

53
4.5.5.
Correlations
Employee_Beha
vior ATM_Services
Employee_Behavior Pearson Correlation 1 .357
**

Sig. (2-tailed) .000
N 150 150
ATM_Services Pearson Correlation .357
**
1
Sig. (2-tailed) .000
N 150 150
**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation:

Table 4.5.5 represents the table of correlations. To determine if there was a statistically
significant association between Employee Behavior and ATM Services, a correlation was
computed. Both the variables were approximately normal, there is linear relation between them
hence fulfilling the assumption for person correlation. Thus, the person is determined, r=0.36,
p=0.00 relating that there is highly significant relationship between the variables (Employee
Behavior and ATM Services). The positive sign of the person test value shows that there is
positive relationship. Using Cohn‘s (1988) guidelines‘ there is moderate relationship between the
variables (Employee Behavior and ATM Services).


.

54
4.5.6.
Correlations
Employee_Beha
vior Online_Banking
Employee_Behavior Pearson Correlation 1 .355
**

Sig. (2-tailed) .000
N 150 150
Online_Banking Pearson Correlation .355
**
1
Sig. (2-tailed) .000
N 150 150
**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation:

Table 4.5.6 represents the table of correlations. To determine if there was a statistically
significant association between Employee Behavior and Online Banking, a correlation was
calculated. Both the variables were approximately normal, there is linear relation between them
hence fulfilling the assumption for person correlation. Thus, the person is examined, r=0.36,
p=0.00 relating that there is highly significant relationship between the variables. The positive
sign of the person test value shows that there is positive relationship. Using Cohn‘s (1988)
guidelines‘ there is moderate relationship between the variables (Employee Behavior and Online
Banking).



.

55
4.5.7.
Correlations
Employee_Behav
ior Mobile_Banking
Employee_Behavior Pearson Correlation 1 .435
**

Sig. (2-tailed) .000
N 150 150
Mobile_Banking Pearson Correlation .435
**
1
Sig. (2-tailed) .000
N 150 150
**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation:

Table 4.5.6 represents the table of correlations. To examined if there was a statistically
significant association between Employee Behavior and Mobile Banking, a correlation was
computed. Both the variables were approximately normal, there is linear relation between them
hence fulfilling the assumption for person correlation. Thus, the person is determined, r=0.44,
p=0.00 relating that there is highly significant relationship between the variables. The positive
sign of the person test value shows that there is positive relationship. Using Cohn‘s (1988)
guidelines‘ there is moderate relationship between Employee Behavior and Mobile Banking.



.

56
4.5.8.

Correlations
ATM_Services Online_Banking
ATM_Services Pearson Correlation 1 .542
**

Sig. (2-tailed) .000
N 150 150
Online_Banking Pearson Correlation .542
**
1
Sig. (2-tailed) .000
N 150 150
**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation:

Table 4.5.5 represents the table of correlations. To determine if there was a statistically
significant association between ATM Services and Online Banking, a correlation was calculated.
Both the variables were approximately normal, there is linear relation between them hence
fulfilling the assumption for person correlation. Thus, the person is determined, r=0.54, p=0.00
relating that there is highly significant relationship between the variables (ATM Services and
Online Banking). The positive sign of the person test value shows that there is positive
relationship. Using Cohn‘s (1988) guidelines‘ there is moderate relationship between the
variables (ATM Services and Online Banking).



.

57
4.5.9.

Correlations
ATM_Services Mobile_Banking
ATM_Services Pearson Correlation 1 .600
**

Sig. (2-tailed) .000
N 150 150
Mobile_Banking Pearson Correlation .600
**
1
Sig. (2-tailed) .000
N 150 150
**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation:

Table 4.5.9 shows the table of correlations. To determine if there was a statistically significant
association between ATM Services and Mobile Banking, a correlation was computed. Both the
variables (ATM Services and Mobile Banking) were approximately normal, there is linear
relation between them hence fulfilling the assumption for person correlation. Thus, the person is
determined, r=0.60, p=0.00 relating that there is highly significant relationship between the
variables. The positive sign of the person test value shows that there is positive relationship.
Using Cohn‘s (1988) guidelines‘ there is moderate relationship between ATM Services and
Mobile Banking.


.

58
4.5.10.

Correlations
Online_Banking Mobile_Banking
Online_Banking Pearson Correlation 1 .489
**

Sig. (2-tailed) .000
N 150 150
Mobile_Banking Pearson Correlation .489
**
1
Sig. (2-tailed) .000
N 150 150
**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation:

Table 4.5.10 represents the table of correlations statistics. To determine if there was a
statistically significant association between Online Banking and Mobile Banking, a correlation
was computed. Both the variables were approximately normal, there is linear relation between
them hence fulfilling the assumption for person correlation. Thus, the person is determined,
r=0.49, p=0.00 relating that there is highly significant relationship between the variables. The
positive sign of the person test value shows that there is positive relationship. Using Cohn‘s
(1988) guidelines‘ there is moderate relationship between Online Banking and Mobile Banking.



.

59
4.6. Regression:

Variables Entered/Removed
b

Model Variables Entered Variables Removed Method
1
Mobile_Banking,
Employee_Behavior,
Online_Banking,
ATM_Services
a

. Enter
a. All requested variables entered.
b. Dependent Variable: Bank_Sale
Model Summary
Model R R Square Adjusted R Square
Std. Error of the
Estimate
1 .762
a
.580 .569 .42668
a. Predictors: (Constant), Mobile_Banking, Employee_Behavior,
Online_Banking, ATM_Services

ANOVA
b

Model
Sum of
Squares df Mean Square F Sig.
1 Regression
36.469 4 9.117 50.079 .000
a

Residual 26.398 145 .182
Total 62.867 149
a. Predictors: (Constant), Mobile_Banking, Employee_Behavior, Online_Banking,
ATM_Services
b. Dependent Variable: Bank_Sale

.

60
Interpretation:

The value of the coefficient of determination (R2) is 0.580. This shows that the correlation
between the observed values of Mobile banking, Employee Behavior, ATM Services and Online
Banking is 58% percent. The adjusted coefficient of determination (adj. R2) shows is adjusted
for the degrees of freedom. The value of the adjusted coefficient of determination (adj. R2) is
0.569, which shows that 56% variation was explained by the model according to Cohen (1988),
this is large effect. The value of F-statistic is statistically significant at less than five percent that
exhibits that in the estimated model the partial regressions coefficients is different from zero.


Coefficients
a

Model
Unstandardized
Coefficients
Standardized
Coefficients
t Sig. B Std. Error Beta
1 (Constant) -.093 .277 -.336 .737
Employee_Behavior .308 .071 .264 4.332 .000
ATM_Services .350 .079 .320 4.430 .000
Online_Banking .278 .071 .262 3.933 .000
Mobile_Banking .145 .076 .138 1.918 .057
a. Dependent Variable: Bank_Sale

Interpretation:

The coefficient table presents the results of the regression analysis. The objective of the
regression in this study is to find such an equation that could be used to find the impact of
.

61
Customer Services on sale in banking sector. The specified regression equation takes the
following form:
Y = constant + bx
1
+ cx
2
+ dx
3
+ ex
4
Bank Sale = -.093 + 0.308(E.B) + 0.350(ATM) + 0.278(O.B) + 0.145(M.B)
The results show that the independent variables significantly affect the sales of a bank as shown
by the values of the t-statistic and the corresponding P-values. T-test is used to test the
significance of the individual partial regression coefficients. When we individually check the
relationship of independent variable (Employee Behavior, ATM Services, Online Banking and
Mobile Banking) we found that probably there are significant values (less than 0.05) of all
variables and relationship of variables exist.










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CHAPTER # 5
DISCUSSION/CONCLUSION
5.1. DISCUSSION
In banking sector, customer services play a vital role to increase the sale. Mostly customers want
high quality services which can save their time and provide importance. Customers want all
those things which create value and provide safety to them. There are some banks those are
provide customer services very well like HBL, SCB and their customer are satisfy with them.
There was a system of direct finance before the arrival of modern banking form, where the
owner of capital transactions directly with the investors. Now banks are dealing in various
transactions like collecting, receiving, transferring, lending, paying, investing and many more in
organize to facilitate & achieve excellence in their consumer‘s insights (Muhammad Tahir,
2008). As we know to increase sale in banking sector, the customer services play very important
role. So the main aim of this research is to develop a complete conceptual model to measure
impact of customer services on sale in the banking sector. Automated services are defined as the
customer‘s overall evaluation of the superiority of the condition of services through electronic
networks such as the internet/online banking, Automated Teller Machine (ATM) services, and
mobile banking (Mohammed Al-Hawari, 2005).
According to my knowledge and research many researchers have researched about the impact of
customer services on sale in European counties with the same variables (ATM, Online & Mobile
Banking). In Pakistan no one had conduct research with exactly these variables altogether. In
Pakistan, this is first time when I am conducting research about the importance of customer
services on sale with these variables. I am using mix method technique in this research so that I
can cover all deficiencies. Therefore the purpose of this research is to determine the relationship
between customer services and sales in banking sector. The purpose of the study is also
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identifying the impact of customer services (Employees Behavior, ATM Services, Online
Banking and Mobile Banking) on sale in Pakistani banks and to find the impact of these factors
on new technology adoption. The most of the users have concern about their data privacy and
safety. Bank has to take initiative to increase customer orientation by educating them about new
technology and security issues. Government has to provide basic infrastructure required to access
online banking services in order to improve customer satisfaction (AHMAD & Shahid RASHID,
2011).
Employee behavior is very important element of customer service in banking sector. Mostly
bank customers evaluate commercial banks on the bank employee dimension, when they place a
heavy emphasis on positive staff attitude, knowledgeable staff, employee professionalism and
timely employee responses to correspondence. The quality of services is the most important
factor that matters a lot in today‘s modern and successful banking business. All commercial
banks are required to offer almost same services due to uniform policies of the central bank. But
the most important phenomenon is that how these services are provided (Ziethaml, 1996). For
the developing world Mobile banking systems may prove to be an important innovation.
However, the true measure of that importance requires multiple studies using multiple
methodologies and multiple theoretical perspectives before the issue of its economic implication
can be fully outlined (Otubu, 2009). In the economic system of any country Banks have their
own significant role to play. According to their prescribed roles, various types of banks perform
various functions defined by their memorandums and articles of association (AKHTAR, 2002).
There are two modes of primary data collection including Questionnaire and Interview. For our
primary data we would be fill up the questionnaire from those customers who have their account
in any bank in Pakistan especially in Lahore under consideration.
Surveys; Questionnaires
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Pakistan banking sector has gone through tremendous technological changes and launched
Online banking Information System (OBIS) (Chandio). Foreign banks in Pakistan are initiators
for introducing E-banking practices in mid 1990‘s. In late 90‘s domestic banks also adopted the
technology and e-banking services like ATM cards and debit cards. According to the definition
provided by (Abid et al., 2006), ―Any use of information and communication technology and
electronic means by a bank to conduct transactions and have interaction with the stakeholders‖
(Muhammad Shakil AHMAD, 2011). There are more then 18.5 million users of internet services
in Pakistan with10.6% penetration rate and 70% banks are offering internet banking services but
adoption rate of the service is very slow (SBP, 2009).
A study conducted by Khan (2007) in Pakistan revealed that due to big communication gap
between the customers and banks, internet banking services are not matching the customers‘
expectation and needs, in addition to the consumer perception of high risk, privacy and security
issues. Another study by Kaleem (2008) explored the bankers‘ perception about internet banking
and revealed that bankers perceive that internet banking in Pakistan is more risky; lack of
information, inconvenience and security issues are perceived to be other barriers in rapid growth
of internet banking (Hassan Danial Aslam, 2011). As this medium started grooming, Online
banking has produced value for the banks in terms of enhances customer service, reducing cost,
and has increased long-term revenue by permitting customers to carry out transactions online and
perform other activities at any time they want from their offices, homes and from any other
remote location that is sufficient for them (Khan, 2007). Mobile Banking allows users to make
financial transactions or transfers across the state or nation by using mobile phone funds transfer
service, at low cost and conveniently. Access to financial services and certainly overall financial
development is crucial to economic growth and poverty reduction shows a large body of
verification (Mwangi S. Kimenyi, 2009).
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According to the requirements of the research, a longitudinal research design will be used. The
data will be collected in three to four months. The data will be collected from those customers
who have their account in any bank in Lahore. The total respondents are 1000 from all banks in
Lahore and a sample size is almost 150. To collect the data from the target respondent, random
sampling technique will be used and the data will be collected in the form of questionnaire. We
will use descriptive inferential type of methodology and extract the results from SPSS and then
analyze and compare them with the theoretical basis to check the positive or negative
relationship among different variables.
5.2. Conclusion:
This research is helps for the bank manager they can come to know that how sales of a bank can
be increased and which one is the best method to increase the sale. We conclude from this
research that all independent variables (Employee Behavior, ATM Services, Online Banking and
Mobile Banking) directly affect the sale of a bank. All independent variables have positive and
strong relationship with dependent variable. To increase the Sale of a bank, Manager must
provide all these services to his customers.






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