Miss. Baharak Aghamohammadi PDF

“A STUDY OF CONSUMER BEHAVIOR TOWARDS ELECTRONIC BANKING
SERVICES IN PUNE CITY”
A THESIS SUBMITTED TO
BHARATI VIDYAPEETH DEEMED UNIVERSITY PUNE (INDIA)
FOR AWARD OF DEGREE OF
DOCTOR OF PHILOSOPHY IN COMMERCE
UNDER THE FACULTY OF ARTS, SOCIAL SCIENCE AND COMMERCE
SUBMITTED BY
Miss. BAHARAK AGHAMOHAMMADI
UNDER THE GUIDANCE OF

Dr. SUSHAMA KESKAR
RESEARCH CENTER
BHARATI VIDYAPEETH DEEMED UNIVERSITY
YASHWANTRAO MOHITE COLLEGE,
PUNE
NOVEMBER 2016
Certificate
This is to certify that the work incorporated in the thesis entitled “A STUDY OF
CONSUMER BEHAVIOR TOWARDS ELECTRONIC BANKING SERVICES IN
PUNE CITY” for the degree of doctor of philosophy , in the subject of commerce under
the faculty of Arts, Social Sciences and Commerce has been carried out by Miss. Baharak
Aghamohammadi in the department of commerce at Bharati Vidyapeeth Deemed
University, Yashwantrao Mohite College during the period from October 2013 to
November 2016 under the guidance of Dr. Sushama Keskar.
Place: Pune (Signature of head of the institute with seal)
Date: Principal/ Director
Seal
I
.
Certificate of Guidance
This is to certify that the work incorporated in the thesis “A STUDY OF CONSUMER
BEHAVIOR TOWARDS ELECTRONIC BANKING SERVICES IN PUNE CITY”
For the degree of doctor of philosophy, in the subject of commerce under the faculty of
Arts, Social Sciences and Commerce has been carried out by Miss. Baharak
Aghamohammadi in the department of Commerce at Bharati Vidyapeeth Deemed
University ,Yashwantrao Mohite College during the period from October 2013 to
November 2016 under my direct Supervision/guidance .
Research Guide
Dr. Sushama Keskar
II
Declaration by the Candidate
I hereby declare that the thesis entitled “A STUDY OF CONSUMER BEHAVIOR
TOWARDS ELECTRONIC BANKING SERVICES IN PUNE CITY” submitted by
me to the Bharati Vidyapeeth University, Pune for the degree of doctor of philosophy
(Ph.D.) in Commerce under the Faculty of Arts, Social Sciences and Commerce is
original piece of work carried out by me under the supervision of Dr. Sushama Keskar.
I further declare that it has not been submitted to this or any other university or institution
for the award of any degree or Diploma.
I also confirm that all the material which I have borrowed from other sources and
incorporated in this thesis is duly acknowledged. If any material is not duly
acknowledged and found incorporated in this thesis, it is entirely my responsibility. I am
fully aware of implications of any such act which might have been committed by me
advertently or inadvertently.
Baharak Aghamohammadi
Research Student
III
Acknowledgement
First and the most of all I would like to express my deepest gratitude to my guide,
Dr.Sushama Keskar.
I have been amazingly fortunate to have a great mentor such her on the path of my
research who added much of value to the entire work. Her patience and support helped
me to overcome many crisis situations, and her constant guidance and encouragements
has kept me moving further and finish this dissertation.
I am thankful to Dr.S.N.Borhade, Head Department of Commerce for giving me the right
advice at the right time and being a source of motivation.
I would like to express my sincere gratitude towards, Hon’ble Dr.Patangrao Kadam,
Bharati Vidyapeeth University, Pune; Hon’ble Dr. Shivajirao Kadam,Vice Chancellor,
Bharati Vidyapeeth University, Pune; Hon’ble Dr.Vishwajeet Kadam, Secretary, Bharati
Vidyapeeth University, Pune without whose encouragement to complete this task in time.
I am indebted to Dr.S.I.Kumbhar Dean Faculty of Arts, Sciences and Commerce.
I am thankful to the authorities and staff of Bharati Vidyapeeth Deemed University and
Yashwantrao Mohite College for various supports during my studies and also thanks to
library authorities of Yashwantrao Mohite College, library of Pune University,
Department of Commerce, , who have permitted of their resources and their facilities.
Most importantly, none of these would have been possible without love and patience of
my family, (my dear father and mother) who put their faith in me and supported me with
their unconditional love and constant encouragement in the entire process of my research.
Finally I appreciate all concerned people who co-operated with me in this regard and
have made this dissertation possible.
At the end, I would like to say thanks to India for this opportunity.
Baharak Aghamohammadi
IV
Table of contents
Sr. No. Title Page No.
a Certificate I
b Certificate Of Guidance II
c Declarations By The Candidate III
d Acknowledgment IV
e Table of contents V
f Tables VI
g Figures VII
h Charts VIII
i Abbreviations IX
j List of Annexure 1
Chapter 1 Introduction 1
Chapter 2 Literature Review 27
Chapter 3 Research Methodology 50
Chapter 4 Data Analysis 77
Chapter 5 Findings, Conclusions and Suggestions 204
A Bibliography 218
B Annexure 224
V
Tables
Table Title Page

No. No.
1.1 Branches and ATMs of Scheduled Commercial Banks as of 7

end December 2014
3.1 Score table for internal consistency based on Cronbach’s Alpha test 55
3.2 Pune city consists of following wards 62
4.1 Basic data 81
4.2 Knowledge about electronic banking 86
4.3 Reasons for not opening an electronic bank account frequencies 88
4.4 Friedman test statistics for usage of ATM services 90
4.5 Rank table for e-banking services 91
4.6 Usage of electronic banking services 92
4.7 Duration of usage of electronic banking services 93
4.8 The number of banks which consumer deal with 95
4.9 Frequency of use of e-banking services 97
4.10 The place of access the Internet 99
VI
4.11 The electronic features which consumer use regularly 101
4.12 Difficulty on logging to the bank’s website 102
4.13 Usage of traditional bank account 104
4.14 Visiting the bank branches after using e-banking services 105
4.15 The reasons that consumers typically visit their bank branches 106
4.16 Frequency of do visiting bank branches by consumers 108
4.17 The disadvantages of visiting a bank branch 110
4.18 The reasons for choosing e-banking services 112
4.19 Data quality issues face by consumers while using e-banking services 114
4.20 Consumer satisfaction with e-banking services 116
4.21 Frequency of using telephone banking services 117
4.22 Frequency of using (ATM) 119
4.23 Importance of human contact for banking relation 121
4.24 The disadvantages of e-banking services 123
4.25 The reasons of encouraging consumers to use e-banking services 124
4.26 Frequencies the reasons of encouraging consumers to use e-banking 126

services
4.27 Test statistics the reasons of encouraging consumers to use e-banking 126
VII
services
4.28 To find out where the differ lies we refer to frequencies table. 127
4.29 Chi-Square Tests Use of electronic banking is related to Gender 128
4.30 Cross Tabulation Use of electronic banking is related to Gender (1) 129
4.31 Cross tabulation Use of electronic banking is related to Gender 130
4.32 Chi-Square Tests Use of electronic banking is related to age 131
4.33 Cross tabulation Use of electronic banking is related to age 132
4.34 Chi-square tests Use of electronic banking is related to nationality 134
4.35 Cross tabulation tests Use of electronic banking is related to 135

nationality
4.36 Chi- square tests use of electronic banking is related to education 136
4.37 Cross tabulation use of electronic banking is related to education 136
4.38 Cross table of usage of electronic banking service 137
4.39 Chi square tests Use of electronic banking is related to occupation 139
4.40 Cross tabulation use of electronic banking is related to occupation 140
4.41 Cross tabulation of usage of electronic banking service 141
4.42 Chi- square tests use of electronic banking is related to Income 142
4.43 Cross tabulation use of electronic banking is related to Income 143
VIII
4.44 Chi square tests Frequency of use of electronic banking services is 145
related to gender
4.45 Chi square test Frequency of use of electronic banking services is 147
related to age
4.46 Cross tabulation Frequency of use of electronic banking services is 148

related to age (1)

related to age
4.48 Chi- square tests Frequency of use of electronic banking services is 150
related to nationality


4.51 Chi square test Frequency of use of electronic banking services is 153
related to education

related to education (1)

related to occupation

related to occupation (1)
IX
related to income

related to income (1)

related to income
4.60 Chi-square tests using telephone banking frequency is related to 164

gender
4.61 Chi- square tests using telephone banking frequency is related to age 165
4.62 Cross tabulation using telephone banking frequency is related to age 166
(1)
4.63 Cross tabulation using telephone banking frequency is related to age 167
4.64 Table 4.64 chi-square tests using telephone banking frequency is 168
4.65 Chi-square test using telephone banking frequency is related to 170

education
4.66 cross tabulation using telephone banking frequency is related to 171

education (1)
4.67 Cross tabulation using telephone banking frequency is related to 172

education
4.68 Chi-square tests using telephone banking frequency is related to 173

occupation
X
4.69 Cross tabulation Using telephone banking frequency is related to 174
occupation (1)
4.70 Cross tabulation Using telephone banking frequency is related to 175

occupation
4.71 Chi-Square Tests using telephone banking frequency is related to 176

income
4.72 Chi-Square Tests using Automated Teller Machine (ATM) frequency 177
is related to gender
4.73 Cross tabulation using Automated Teller Machine (ATM) frequency is 178
related to gender
related to gender
is related to age
related to age (1)
related to age
4.78 Chi-square tests Using Automated Teller Machine (ATM) frequency 183
is related to nationality
related to nationality (1)
XI
is related to education
is related to occupation
is related to income
related to income
4.90 Binomial Test of satisfied of e-banking services 196
4.91 Binomial Test 196
4.92 Cochran Test of frequencies 197
4.93 Test Statistics 198
XII
XIII
Figures
Figure No Title Page No
1.1 Micro model of E-banking 10
1.2 Basic banking structures in India 18
4.1 Knowledge about electronic banking 87
4.2 Duration of usage of electronic banking services 94
4.3 The number of banks which consumers deal with 96
4.4 Frequency of use of e-banking services 98
4.5 The place of access the Internet 100
4.6 Frequency of do visiting bank branches by consumers 108
4.7 Consumer satisfaction with e-banking services 116
4.8 Telephone banking 118
4.9 ATM 120
4.10 Importance of human contact for banking relation 122
XIV
Charts
chart Title Page
No. No
3.1 Research process 55
3-2 Data collection 69
3-3 Types of data 70
3-4 Primary Data Collection Methods 71
3-5 Secondary Data Collection Methods 72
4.1 Gender 83
4.2 Age 83
4.3 Nationality Distribution 84
4.4 Education wise distribution of the sample 84
4.5 Occupation variety of sample population 85
4.6 Income 85
4.7 E-Banking Service 92
4.8 Difficulty on logging to the bank’s website 102
4.9 Usage of traditional bank account 104
4.10 Visiting the bank branches after using e-banking services 105
XV
Abbreviations
Sr. No Abbreviation Meaning
1 E-BANKING Electronic Banking
2 E- COMMERCE Electronic Commerce
3 IT Information Technology
4 ATM Automate Teller Machine
5 EFTPOS Electronic Funds Transfer At Point Of Sale
6 PC Personal Computer
7 EFT Electronic Fund Transfer
8 POS Point Of Sale
9 EDI Electronic Data Interchange
10 RBT Reserve Bank Of India
11 EFT Electronic Funds Transfer
12 NEFT National Electronic Fund Transfer
13 RTGS Real Time Gross Settlement System
XVI
14 IVR Interactive Voice Response
15 SEM Structural Equation Modeling
16 TAM Technology Acceptance Model
17 DOI Diffusions Of Innovation
18 TTF Task Technology Fit
19 MB Mobile Banking
20 LCM Latent Class Models
21 FC Facilitating Condition
22 TEC Technology Characteristics
XVII
Annexure
Annexure No. Title Page No.
1 Questionnaire 225
2 Pune city map 232
XVIII
CHAPTER 1
INTRODUCTION
Title Page No.
1.1 Introduction …………………………………………………………... 3
1.2 Electronic delivery channels……………………………………………….. 6
1.3 Facets of e-banking…………………………………………………………. 9
1.4 Models of e-banking………………………………………………………… 10
1.5 Advantages of e-banking…………………………………………….......... 11
1.6 Constraints in e-banking…………………………………………………… 13
1.7 Evolution of Indian banking……………………………………………….. 15
1.8 Banking structure in India…………………………………………………. 17
1.9 Evolution of electronic banking: Worldwide…………………………….. 18
1.10Evolution of electronic banking: India……………………………….. 19
1.11Consumer behavior in e-banking system………………………....... 21
1.12Data quality in e-banking……………………………………………… 22
1.13Significance of the Study………………………………………………. 23
1.14 Objectives of the study…………………………………………………. 24
1.15 Chapter Scheme……………………………………………….…………… 25
2
1.1 Introduction
Electronic banking is one of the biggest achievements of electronic commerce. This

growthof e-business can be attributed to rapid change in Web technology and Internet
environment. As a business, banking can be categorised into five basic types:
domestic retail, wholesale, International wholesale, investment and trust. Out of these,
investment and retail banking are too much affected by online technologies and at the
same time extracts maximum benefit from e-commerce. E-Commerce is having huge
impact on banking. These changes are by the virtue of changes in technology,
regulation changes of finance, onset of new banking organizations and economic re-
structuring. To synchronise with these environmental changes banks are re designing
their cost and profit structures. This has many of mergers and acquisitions in banking
industry to reduce cost of operating and to maintain strict control policies. Today's
banks rely on Innovation and Technology to differentiate their financial offers. This
technological change also leads to development of new products and services. For
example, technology has changed over the way we file tax or transfer funds. From
small to large businesses, and even in small household Internet and computers have
made their significant presence during past decades. The technology has changed the
way that consumers and banks interact. The information is nowadays available on
click of a button. Electronic access to bank statement, fund transfer between accounts,
electronic bill payment, use of financial software, online payment, or transferring
payment through credit or debit cards can be called as new services provided through
internet banking. Without any doubts these facilities have raised the speed of retail
banking as well; but still one has to remember that, technology is double edged sword.
No doubt, Banking sector have become more competitive but it has also lead to huge
competition within on-banking firms as well. Recently many non-banking players
have made stronghold and threatening the core banking role players. Availability of
different payment options clearly signals that if banking sector does not innovate or
introduce new product it will perish and a new industry will replace it very fast.
Secondly, technology can make product life cycle shorter. Many banks are now
offering various attractive financial products within a very short span of time.
Therefore, banks have to create innovation at a very fast pace. No doubt this drastic
change in banking industry.
3
Due to World Wide Web, Internet and Electronic Commerce, there is paradigm shift
in banking sector.
E-banking can be known as one of the best achievements of electronic commerce. The
rapidly world entering into the „Net Age‟. Internet is a comprehensive connection of
computer communication networks covering entire world. The growth of Information
technology and internet has facilitated the emergence of e-banking. E-banking is the
application of advanced technologies for sharing the resources based on financial
information in electronic from which can minimize the need for the physical presence
of the consumers in the bank branches and offices. E-banking provides opportunities
for banks to raise the speed and efficiency in their services to customers at any time of
the day (24 hours) and anywhere without the need of physical presence at bank and
through the electronic channels. Today‟s banking is called as virtual banking. Virtual
banking provides the banking services with the use of IT, without direct resource to
the bank by customers. Virtual banking services mainly include Automated Teller
Machine (ATM), smart cards, phone banking, electronic funds transfer at point of sale
(EFTPOS), home banking and internet banking. In traditional banking the customers
have to visit the bank personally to be served with the banking operations and use the
banking services such as cash withdrawals, account inquiry, opening the account,
funds transfer and etc. But e-banking provides the banking services to their customers
by sitting at their own places and performs banking transaction through their personal
computer (PC), laptop or smart phone. E-banking consumers can easily access the
bank website (interface) for checking their account details and perform the
transactions as they require. E-banking is also knowledge based and mostly scientific
in using various electronic devices of the computer revolution so electronic banking
can be considered as more of science than art. E-banking nowadays has becomes a
virtual banking counter that either individual or corporate customer can carry out the
regular activities. E-banking includes the systems that enable financial institution
customers, individuals or businesses, or gain information on financial products and
services through a public or private network, including the internet.
Apart from technological changes there are certain other elements which are changing
the characteristics of banking industry. Traditionally banking industry relied mainly
on asset quality and capitalisation to increase their profit, but now banks have to look
for new ways to expand their earnings in more mature market. Therefore, to device
4
their online strategy banks should understand the nature of competitive environment.
Five different factors which are contributing towards new competitive environment
are change of consumer needs, reduction of cost, change in demographic trends,
regulatory reforms and technology based financial services products (Kalakota &
Whinston, 2009):
Change of consumer needs: During last few decades‟ requirements of consumers have
changed substantially. They want to access account related information, transfer funds
or pay their bills electronically on a weekend or late at night as per their prefer
conveniently. On the other hand, banks want to develop and maintain a long term
relationship with the consumers. Therefore, e-banking enables bank customers to be
reached and served conveniently 24/7 and 365 days.
Reduction of cost: Since 1980s banking sector is consolidating to lower down the
operating costs. In the face of competition, banks have to take care of their traditional
banking overhead cost structures and existing retail strategies. It is noteworthy that
physical presence can be expensive whereas delivery of services through online
technology can be very cost reducing.
Change in demographic trends: Due to changes of trends in social, demographic and
economic behaviour customers are becoming savvy with respect to their money and
time. This trend can be noticed from the fact that most of the customers prefer
purchasing the investment through web. Organisations are also taking advantage of
this opportunity by segmenting, targeting and positioning of market with customised
products and services.
 Regulatory reforms
Banking by nature is closely watched and regulated sector. In last few years,
many of the competitive protections availed by banks, have been removed by
regulatory agencies, leading to higher competition from brokerage firms,
insurance companies and mutual funds. In this competition among providers
of financial services through new technological environment, the one with
greater technological advantage will survive.
5
 Technology based financial services products
Many Banks are shut down a considerable number of their physical branches
and start using website to extend services to their customer. Certain banking
services are made available over the telephone. Smart cards and electronic
cash are also becoming more popular as well.
1.2 Electronic delivery channels
Banking activities through traditional delivery system andvia branch network is

declining because customer can do banking through the more modern delivery
channels. Information technology has facilitated thebanks in a manner to deliver their
products more effectively to large number of consumers. Few of the most popular
electronic delivery channels are briefly discussed below (Gordon & Natarajan, 2010).
ATMs
ATMs were earlier seen as cash dispenser, but now they have emerged as great
marketing tool. ATMs can reach out larger customer base at considerably lower cost
because they are user friendly. Now banks are using ATMs to cross sell various
products like railway, movie or air tickets. In the near future ATMs will function like
kiosk delivering non cash transactions.
6
Table 1.1 Branches and ATMs of Scheduled Commercial Banks as of end
December 2014
Number of On-site Off-site Total

Type of Bank
branches ATMs ATMs ATMs
Nationalised banks 33,627 38,606 22,265 60,871
State Bank of India 13,661 28,926 22,827 51,753
Old private sector

4,511 4,761 4,624 9,385
banks
New private sector

1,685 12,546 26,839 39,385
banks
Foreign banks 242 295 854 1,149
TOTAL 53,726 85,134 77,409 1,62,543
Source: Wikipedia (2016)
Smartcards
A widely used tool of technology by bankers is smart card. Smart card is a chip based
card which acts as electronic valet. The microchip in the card stores the value and
when transaction is made the value is debited to holder‟s account. Smart cards are
much more secure than ATM, debit and credit cards and it does away all the problems
related with traditional currency.
7
Tele banking
Telebanking is becoming popular serving channel for marketing of banking services

because it enables customer to perform all non-cash related banking transactions over
the phone anywhere anytime.
Electronic fund Transfer (EFT):
EFT is one way of transferring money directly from one account to another account
that helps in saving the customer times and money. Electronic fund transfer facilitates
the customers with making transaction and distributing funds directly to any account
individual or business electronically, quickly, automatically and accurately. EFT
increases accuracy through electronic banking and reduces employee‟s time spent on
administration and decreases costs of distribution.
Point of Sale (PoS) banking:
PoS is another famous way to provide electronic banking services. POS is an

electronic device that provides automatic transfer of the amount purchased from the
customer‟s account (the card holder) to the seller (card acceptor) through either the
telephone banking or e-banking networks.
Mobile banking:
Mobile phones are nowadays great role players in e-banking. This type of e-banking
can provide the possibility to the customers to see their bank statements, transfer
money and complete control over their account through of mobile phones. Mobile
banking permits the bank‟s customers to conduct a number of financial transactions
through a device such as a mobile phone or tablet.
Internet banking
Out of all the available electronic delivery channels, Internet banking has emerged as
most prominent electronic channel. From the banker‟ prospective cost per transaction
in Internet banking is only one-tenth of a regular branch cost. Another major benefit is
that Internet banking can be used for delivery of banking services anywhere anytime.
8
With falling cell phone tariff and seamless connectivity telebanking and mobile
banking are set to become most effective delivery channels in near future.
1.3 Facets of e-banking
As e-banking is a conduct of banking electronically it eliminates paper-based

transactions and radically change the banking operations. E-banking can operate
through internet, extranet or intranet with at least one of the following
dimensions(Gordon & Natarajan, 2010):
Customer-to-bank e-banking
E-banking is based on Internet, therefore various banking products and services like
credit card, deposit, etc and other banking related information can readily be made
available to consumers with the help of Internet. There are several network oriented
innovations for e-banking such as Smart cards, Electronic Data Interchange etc.
Bank-to-bank e-banking
Bank to bank e banking is based on extranet and it mainly includes transaction

between banks such as money-at-call. This type of banking has to be much secured
and there is no unauthorised access considering its nature.
Electronic central banking
In case of e-central banking all banks are under the supervision and inspection of a
Central Bank and they are interconnected through extranet to facilitate management
of cash reserves, discounting of bills, clearing of cheques etc. eventually, the central
bank has to be connected with Government treasury system on extranet to perform its
function as an agent of government. These central banks from different countries can
be interlinked with World Bank or other international financial institution also
through extranet.
9
Intranet procurement
Intranet procurement deals with internal transactions in a bank or between the bank
and its branches and authorised subsidiaries. Whereas extranet allow the bank to have
full dominance over the user of Intranet and the information transmitted through it.
For the development of financial sector extensive networking and integration of
internal and external communication of banking related information are required The
Extranet-Intranet-Internet relationship is presented in the following figure:
Figure1.1 Micro model of E-banking
Intranet Bank Customer
Banks Extranet Central Bank
1.4 Models of e-banking
Following models have been suggested to effectively implement e-banking(Gordon &

Natarajan, 2010).
Complete centralised solution
E-banking can be performed and operated uniformly and effectively through this ideal
branch network model. In this model, bank has to facilitate itself with web server and
required software which connects them to the main server. After hardware and
software are set up, a customer can access the web server for any basic banking
operations using standard browser from any location. Bank branches are provided
with online nodes to receive request for customers, LG smart remote branches are
connected to make satellite link effective. Another advantage of complete centralised
solution is that skilled manpower is required only at the centralised location.
10
Cluster approach
In case of cluster model or approach computerized branches of each city are

connected with regional processor located at the city which is further connected
through reliable media to a centralised cluster of high end server. Most of the
branches are computerized in an accumulated way to network which is UNIX server.
It is very important that an integrated computerization is available at all branches to
enable the connectivity between the branches being established through regional
clusters.
High tech bank within bank
Complete computerization of all the branches is prohibited under this model.

Therefore, within each bank two different types of banks operate concurrently i.e.
traditional bank offering traditional services through other branches and hi-tech bank
providing e-banking facilities through confined and selected branches. This is a
balanced approach where bank can offer state of the various services to demanding
consumers in big cities and continue to offer traditional personalised services to large-
number customers.
1.5 Advantages of e-banking
The benefit s of electronic banking can be considered from two prospective, customer
prospective and bank prospective. Advantages of e-banking from the perspective of
the customers can be known as: saving in costs, saving in time and convenience in
banking operations. From bank perspective, the advantages can be named as the
featured such as creation and increase the reputation in delivering innovation,
customer retention despite changes in place by banks and their branches, expand the
geographical area of activity and the emergence of high level of competition and
creating an opportunity to search new customers in determined target market.
Electronic banking enables the customer access to various banking services without
physically presence through secure communication channels. On other hand e-
banking can deliver the new and traditional banking services to customers through
available and designed electronic channels directly. The use of e-banking in the world
have lowered down the banking costs and based on this the banks charges also will
also fall. As any other financial institutions the revenue of banks depends on the
11
customer satisfaction. Recently electronic banking has increased. The customer
satisfaction with development of information technology and data provided to them
has been able to offer new services to its customers. Today with developing of
electronic banking services, customer interest in using these services is fairly
improving day by day. One of the main challenges in electronic banking is customer
trust. With signifying role of electronic commerce and according to electronic
businesses in the world and need to transfer funds to banking operations, electronic
banking has become a major role player in e-commerce. Today electronic banking is a
vital part of modern banking industry. Therefore, the banks which lose such services
in the public services, they will face the risk of losing lots of its customers and market
share. Conversely, those banks which give special attention to promote electronic
banking services will have the higher chance to attract more customers and can cover
considerable geographic area and will also be able to increase credibility. There are
several advantages of e-banking which are enlisted below(Gordon & Natarajan,
2010).
No- time limit banking
Customers can perform basic e-banking round the clock globally 24/7 and 365 and
there are no restricted office hours.
Banking with Convenience
E-banking has increased customer convenience as no personal appearance is required

at the bank and customer can carry out basic branch transactions by simply sitting at
his home or office with the help of laptop or personal computer.
Reduced cost banking
The transaction cost using Internet banking is much less than any other traditional
approach. Now brick and mortar structure of banking is simply replaced by click and
portal. Now banks can serve great number of potential customers without any
physical branch and there is considerable savings on the cost of infrastructure and
staff.
12
Profitable banking
High speed, response and customer satisfaction of e-banking leads to higher profits in
spite of handling a large number of customers. Banks can also offer many cash
management services to existing customers without adding any cost.
Quality banking
Large range of products and services can be delivered efficiently. Economically and
at high quality to the customers.
Speed banking
Large number of customers and transaction can be handled with the help of e-
banking. This has leaded to increase in speed of response to customer requirements
and as a result to greater customer satisfaction.
Service banking
E-banking creates strong and reliable infrastructure for the bank and it can venture in
new fields like e-commerce, EDI. Therefore, it adds convenience and comfort to the
entire banking services apart from enhancing the range of services.
1.6 Constraints in e-banking
There are varieties of obvious benefits of e-banking however there are certain
elements which impede smooth implementation of e-banking. These factors are
discussed below(Gordon & Natarajan, 2010).
 Start-up cost
For venturing into e-banking initial start-up costs are considerably high. These
costs may include, connection cost towards mode of communication or
Internet. For e-banking network should be robust, highly efficient, scalable
and with high security with inbuilt redundancy. Second is cost of hardware,
software and various other components that may include modem routers
bridges or network management systems etc. Third is the maintenance cost of
website, equipment, employees etc. and in the end, the cost of organisational
set up activities to implement e-banking operations.
13
 Training and maintenance
Providing 24 hour customer support, quality service to end users and other
business partners, bank requires robust group of skilled experts to meet
external and internal promises. To fulfil this demand, banks, spend lot of
money on training and development of their experts. At times bank has to
outsource certain functions to maintain consistency as well as standard
service. Therefore, proper training and retention of experts is major concern.
 Lack of skilled personnel

To route of banking transactions through Internet there is huge amount of
scarcity of web design developers, knowledgeable experts and content
providers. The obsolescence of technology is very rapid nowadays in ever
changing technological scenario; therefore there is shortage of right kind of
skilled manpower.
 Security
There are many security related issues in existing paperless banking
transactions. Documents such as cheques, passbook etc. can be modified
without leaving any tangible trace, similarly destruction of data is also quite
possible. To help with providing of security, technology like encryption,
firewalls, digital signatures etc. are available but they need major initial as
well as initial investment. Even after implementation of security tools
possibility of establishment of secured breach cannot be ruled out.
 Legal issues
For authentication of e-banking transaction legal framework is still being put
in place. As the Internet is growing rapidly one still does not know what
possible legal issues may raise in future banking. Legal aspects such as
wrongful communication, unauthorised access of data etc. should be
considered. To avoid computer related crime, banking legislation of the
country needs to revise in consultation with legal and technical sources of
expertise.
14
 Restricted clientele and technical problems
Any banking customer requires a personal computer or laptop and access to
Internet to log on to the banks website. Secondly, a person having less
computer knowledge may find it difficult to login or navigate through the
bank's website.
 Restricted business
Even considering the adventure of electronic banking there are certain
transactions which cannot be operated electronically and customer has to visit
personally or use postal service for deposition or withdrawal of cash. All
banks have automated their major processes, but still majority of them
maintain the backend processes manually. For example, customers can check
their statement online but paper statements are also sent by post so far.
 Destruction of pricing mechanism
Internet is destroying the model of basic business pricing and is creating

perfect market conditions where customer can get more access to information
and compare rates of products. Due to low cost, competitors can undercut the
prices and provide stiff competition to the existing banks.
1.7 Evolution of Indian banking
The Indian banking has evolved through several stages post-independence. These
stages are discussed below (Gupta, Singh, & Sharma, 2006).
 Foundation phase
In foundation stage, concentration was on laying of a foundation for required
banking system, i.e. the period up to first nationalization of banks (1969).
Sound legal framework for consolidating the banking system was set. During
this process Imperial Bank of India which was the main bank at the time was
converted into the State Bank of India in 1955. Subsequently princely State
Banks were converted into associate banks of the State Bank of India. Earlier
role of banking was the cater to meet the needs of government, individuals and
15
select businessmen, but this role was revised to meet the needs of entire
economy (in the macro level) especially when one sees the small industry and
agriculture sectors.
 Expansion phase
Expansion phase started in mid-1960 but it gained momentum only after the
process of nationalisation of 14 banks in July 1969. This phase is also known
as “mass banking or huge banking phase” because of its determined efforts
were made to make banking services available to all the masses. Large
numbers of banks were obliged to open branches in rural and semi urban
areas. Credit was directed into sectors like small scale industries, agriculture,
small scale export etc. For next 15 years‟ banks were raised as important tools
of socio-economic change of environment. There was substantial rise in
geographic reach of banks, however lending on concessional rates lead to
stress on supervision and profitability of banks. Competitive usefulness was
less due to the activities were regulated by RBI. Main steps taken by the
Government of India to Regulate Banking sector in the Country during this
phase are enlisted below(Tnau.ac.in, 2016).
1949: Enactment of Banking Regulation Act.
1955: Nationalisation of State Bank of India.
1959: Nationalisation of SBI subsidiaries.
1961: Insurance cover extended to deposits.
1969: Nationalisation of 14 major banks.
1971: Creation of credit guarantee corporation.
1975: Creation of regional rural banks.
1980: Nationalisation of seven banks with deposits over 200 crores.
 Consolidation phase
Weaknesses during the enhancement phase forced the banks into consolidation
stage which started in 1985. Some initiatives were started by RBI like
relaxation of controlling, slowing down the branch expansion process, steps to
remove the bottlenecks of money market and toning up of management. Now
banks have started focusing on customer service, credit management, and
16
increase of production and profit making management. The aim was to
overcome the weaknesses that raised due to fast expansion and tight control of
RBI.
 Reform phase
From 1947 to 1990, banking system got widened but most of the commercial
bank was having very weak financial condition. Some of the banks became
unprofitable and undercapitalised with high level of non-performing assets. In
1991 the foreign exchange reserve touched a very low rate and Indian
economy was going at very low rate. This was the time when India faced a
new kind of macroeconomic crisis. Government understood the importance of
liberalisation and globalisation then started with financial sector reforms.
Indian banks were staying behind with respect to international norms as well
as capital adequacy, new accounting practices etc. Government of India
appointed high level committee headed by a very professional expert (former
governor of RBI) to address the problem and suggest remedial measures. The
recommendations of this committee became the base for the financial sector
and banking sector reforms. This committee favoured Rangarajan committee's
suggestions on computerization and recommended computers as indispensable
tools for customer service.
1.8 Banking structure in India
RBI regulates all banks and non-bank financial organization sand controls their
activities through credit and monetary policies. One of the most important segments
of banking sector is scheduled commercial banks which are included in the second
schedule to the Banking Regulation Act. This is done according to the criteria like
minimum net worth and the minimum balance to be held with RBI. Both commercial
and cooperative banks are included under determined scheduled bank and they are
entitled to some facilities with the RBI. Apart from scheduled commercial bank there
are Indian and foreign banks as well. Some local area banks were also licensed to
operate in the specified areas during 1999-2000.The basic banking structure in India
can be summarised as per the figure 2 below (Avadhani, 2009; RBI, 2013).
17
Figure 1.2 basic banking structures in India
1.9 Evolution of electronic banking: Worldwide
With the development of World Wide Web, Internet banking got developed. During
1980s developers working on banking database thought about online banking
transactions. But the genuine process accelerated after number of companies started
the concept of online shopping. Online shopping led to promotion of use of credit
cards by the help of Internet. To support their employees many banks started creating
data warehouse which were used during the development stage of ATMs. During
1980s, research and programming experiments with respect to home banking also
started in Europe and United States. This development was further accelerated by
widespread use of Internet and programming facilities. In 1983, Internet banking
service was launched in U.K by the Nottingham Building Society, usually abbreviated
and referred to as the NBS, which formed the initial basis for most of the future
Internet banking facilities. Since this facility was under developed, account holders
were able to execute restricted number of transactions and operations. This facility
which was introduced by Nottingham Building Society was derived from a system
called as Prestel which was deployed by Postal Service Department of United
Kingdom. In October 1994, Stanford Federal Credit Union, which is known as a
18
financial institution developed and introduced first online banking service in United
States. Due to the efficient systems online banking services are becoming more and
more prevalent and electronic cash has become a revolution that is enhancing the
banking sector (Scholasticus, 2009).
E-banking was first existed conceptually inmid-1970 and few banks started offering
electronic banking in 1985. But due to cost reasons and also lack of Internet user
online banking was stunted. In late 1990 due to Internet explosion people became
more comfortable making transaction over Internet. E-banking grew alongside the
Internet despite of dotcom crash in 2000. During mid 1990s many financial
institutions took initiative to implement e-banking services, however many consumers
were doubtful to conduct financial transactions over the Internet. Trailblazing e-
commerce companies like America Online, Amazon.com and eBay popularised the
idea of online payment. Eighty percent of U.S. banks offered e-banking before2000.
E-banking use by customers was growing very slowly up to 2000, but after Y2K scare
ended it grew rapidly. Bank of America became the first bank to top 3 million online
banking customers in 2001 (Batchelor, 2016).
1.10 Evolution of electronic banking: India
Indian banking sector has been considerably impacted by IT revolution. Growth of

online banking in India has been accelerated by use of computers. This growth was
considerably visible after economic liberalisation in 1991, when country‟s banking
sector became open to World market. Without the use of information technology
Indian banks were finding it very difficult to compete with international competitors
in terms of customer service. To address this issue RBI setup number of committees
to define and coordinate banking technology, which are mentioned below (RBI, 1988;
Wikipedia, 2016).
 In 1984, a committee on Mechanisation in the Banking Industry was formed

headed by Dr. C Rangarajan, Deputy Governor, Reserve Bank of India. The
committee suggested introducing MICR technology to all the banks in
Metropolitan cities in India. This recommendation induced the use of
standardised cheque forms and encoders.
19
 In 1988, Committee on Computerisation in Banks was established by RBI
headed by Dr. C Rangarajan. The committee suggested that clearing houses of
RBI in Bhubaneshwar, Guwahati, Jaipur, Patna and Thiruvananthapuram must
be facilitated with the technological changes. The committee also
recommended operationalization of MICR and National Clearing of inter-city
cheques at Kolkata, Mumbai, Delhi, and Chennai. It was suggested to give
rise to connectivity among branches and computerization was advised to.
Modalities for implementing on-line banking were also suggested. After
submission of reports in 1989, computerization began from 1993 along with
the settlement between IBA and bank employees' associations.
 In 1994, under Chairmanship of W S Saraf Committee on Technology Issues

relating to Payment systems, Cheque Clearing and Securities Settlement in the
Banking Industry was established. This committee was mainly focusing on
Electronic Funds Transfer (EFT) system through BANKNET communications
channel network. Committee suggested establishment of MICR clearing in all
branches of all those banks having more than 100 branches.
 In 1995, EFT system was emphasised by the Committee for suggesting

Legislation on Electronic Funds Transfer and other types of Electronic
Payments.
Role of e-banking in Pune city
Electronic banking has been in the process of changing the business form traditional
to modern. Pune city is the seventh largest metropolis in India and the second largest
in the state of Maharashtra. Pune is considered as the cultural capital of Maharashtra.
Urban density of Pune is one of the fastest growing areas in Maharashtra with total
population of almost 5,926,606 in 2015. Between1950s and 1960s; Pune had
traditional old economy industries which continued growing. The city is mainly
famous for manufacturing and automobiles, as well as government and private sector
research institutes for information technology (IT) education, management and
20
training that attract migrants, students and professionals from India and all over the
world. Hence Pune city is one of the big cities in India where in most of public and
private sector banks. They have branches and provide services to their customers.
They have competition with each other for attracting more number of consumers. It is
quite obvious that a giant city like Pune is going to need banking services in large
number of population and high quality in future.
1.11 Consumer behavior in e-banking system
According to the advancement of the international economy towards organizational

development, electronic banking is growing very fast and information technology is
the most important factor in this development. Banking sector in India understood the
importance of this force from the perspective of competitive advantage. Banking
sector and India concentrated in advanced technology in innovation of services and
products of electronic banking includes ATMs, phone banking, electronic funds
transfer, debit cards, credit cards. According to the innovation in banking industry
evaluation of the customer behaviour is the main factor and this study is focused on
consumer behaviour towards electronic banking services in Pune city. Investigation of
consumer behaviour after using electronic banking services will explore the issues of
why some banking consumers accept innovations made over banking sector and why
some not ready to accept it yet? Consumers over the world have respectively easy
access to their accounts, 24 hours per day and seven days a week. In India this is not
yet common place, even at urban area like Pune city. The customers who felt that
branch banking took too much time and effort are now able to make transactions at
the click of their fingers.
The banking industry has been significantly affected by evaluation of technology. The
growing application of computerized network to banking has reduced the cost of
transaction and increased the speed of service accordingly. The speed and quality of
service is improved as customers do not have to travel physically to a branch. The
nature of financial intermediaries has forced banks to improve their production
technology by emphasising on distribution of products. Despite the adoption of
electronic banking, banks in India seem to be aware of the opportunities provided by
internet In fact; they are moving modern internet services to consumers at a higher
21
level. The consumer behaviour has been affected due to e-banking services which are
provided by the banks.
Some questions which arise in consumer behaviour are:
 Why consumers behave in this particular way?

 What is the motivating factor for this particular behavior?
 What is the outcome of this particular behavior?
The change in consumer behaviour in turn, has affected the volume and the nature of
electronic banking transactions. Consumer behaviour is considered as an important
topic. It is now vital for bankers to understand as much as possible about consumer
behaviour since all are living in such a competitive economic environment and the
growth and success of banks mainly depended on knowledge about their customers.
Consumer behaviour examines people (what they demand and how), marketing (the
design of service and products), and customer are not aware of how to use the services
yet. For banking sector, an understanding of consumer behaviour is considered as a
key element in their success.
1.12Data quality in e-banking
Recent regulations and corporate governance requirements have mandated

improvement in corporate data quality. However, most of the companies are assuming
data quality for granted, while effectively managing the business and preparing
financial statements. Data quality issues are costly, and The Data Warehouse Institute
estimated that in U.S. data quality problems cost businesses more than $600 billion a
year(IBM, 2006). Data quality refers to the question of whether data is „fit for
intended use‟. Data quality is typically measured along the dimensions of accuracy,
completeness, conformity, consistency, duplication and integrity, with each dimension
carrying different weight based on the intended use of the data. End-to-end data
quality allows for comparison of data quality across the data flow at a point in time as
well as across time (trends)(Bank of England, 2014; Capgemini, 2012).
 Relevance is the degree to which data meet current and potential requirements
of the users. It also refers to whether all needed data are produced, the extent
22
to which concepts used (definitions, classifications etc) reflect user needs, and
the extent to which users are satisfied with the disseminated data.
 Accuracy in the general data sense signifies the closeness of computations or
estimates to the exact or true values. Data must accurately and reliably portray
reality.
 Timeliness of information means the length of time between the availability of
data and the event or phenomenon they describe.
 Accessibility insists on physical conditions in which users can obtain data:
where to go, how to order, delivery time, clear pricing policy, convenient
marketing conditions (copyright, etc), availability of micro or macro data,
formats, etc.
 Clarity refers to information environment of the data: whether data are
endorsed with appropriate metadata, illustrations like graphs and maps,
whether information on their quality is also available (including limitations in
use) and the extent to which additional assistance is provided.
 Comparability focuses on measurement of the impact of differences in applied
data concepts, definitions, and measurement tools/procedures when statistics
are compared between geographical areas, non-geographical domains, or over
time.
 Coherence of data in statistics is related to adequacy to be reliably combined
in different ways and for various uses. It is, however, generally easier to show
cases of incoherence than to prove coherence.
1.13Significance of the Study
The word has become a global village, and development of information technology
has changed the banking sector. To meet the needs of demanding customers, banks
are using technologies continuously. Technology has fuelled this rapid change and IT
is no more confined to management information system or merely a medium for
transaction processing. Factors of liberalization, globalization, and privatization has
made new generation of banking sector intensely competitive. After liberalisation,
Indian banking sector has seen a paradigm shift from seller centric market to the
buyer centric market. There has been quantum shift in operational performance,
service quality, managerial decisions, profitability and productivity of the banks due
23
to rapid growth and introduction of e-banking. E-banking which was introduced in
preliminary manner is emerging as major trend in Indian banking and it is
empowering and improving service quality in the banking sector. In India, e-banking
was pioneered and introduced by foreign and private banks and now public banks are
following the defined process. E-banking has made an improvement in the operations
of tradition banking in number of various ways. Now banks can handle electronic
payments and inter-bank settlement faster and in large volumes. E-banking has led to
cost reduction for bankers, increase in productivity and customer satisfaction. To
expand their competitiveness, Indian banks have to improve their e-banking services.
Rapid advancement in technology has changed the traditional ways of banking
business. Services like checking account statements, fund transfer etc. can be easily
performed on mere touch of a button.. These services permit large number of
customer to access wide range of banking services without visiting banking locations.
However, there has been variation in from quality by various banks, therefore it is too
important to understand the nature, growth and extent of electronic banking services
and their impact on the operational performance and service quality. Additionally,
there is dearth or lack of research related to e-banking in India, particularly e-banking
in the western region of India. Therefore, this study is humble attempt to understand
consumer behavior towards electronic banking services in Pune city.
1.14Objectives of the study
Specific objectives of this study are as follows:
1. To understand the concept of e-banking and its importance.

2. To understand the role of e-banking as compared to traditional banking, in
terms of cost, efficiency, time, secrecy, quality of services from consumer
perspective in Pune city.
3. To identify the e-banking benefits and problems from consumer‟s point of
view.
4. To identify various e-banking products offered by Indian banks towards
consumers in Pune city.
5. To examine the impact of e-banking products on the behavior of consumers.
24
1.15Chapter Scheme
Present study has been organised under following chapters:
Chapter-I: Introduction- This chapter presents an overview of

Indian Banking with the emphasis on electronic
banking. Topics like factors which are contributing
towards new competitive environment, most popular
electronic delivery channels, facets of e-banking,
models of e-banking, advantages of e-banking,
constraints in e-banking, evolution of Indian banking
and banking structure in India are discussed. It also
highlights specific objectives of the study and explains
the need for the present research work.
Chapter-II: Review of Literature- In this chapter an attempt is made

to review existing literature pertaining to e-banking
with respect to banking service quality, consumer
satisfaction, consumer behaviour, technology adoption,
trust, customer loyalty, brand preference, self-
congruence, issues and barriers associated with Internet
banking service etc. Understanding the increasing
importance of mobile phones as a new medium to
access services few studies related to m-banking are
also reviewed. It lends support to draw some important
conclusions that can serve as a guide mark for the study.
Chapter- III: Research Methodology- In this chapter, the

methodology adopted for the purpose of this study has
been explained. It encompasses the purpose, universe of
study, data collection, sample size, data collection
instrument used and scope of the study. The statistical
tool used and objectives of the study are also explained.
Chapter-IV: Survey Findings: This chapter discusses the findings

based on primary data collected through survey
25
instrument/questionnaire. Hypothesis related to data
quality, exchange speed, ease of use of technology,
saving in cost, convenience in banking, security in
transactions to have a positive impact on the consumer
behavior towards electronic banking is tested and
results are interpreted.
Chapter-V: Summary of Findings, Conclusion and Recommendation.
26
CHAPTER 2
LITERATURE REVIEW
Title Page No.
2.1 Introduction ………………………………………………………… 29
2.2 Books ………………………………………………………………. 29
2.3 Ph.D. Thesis and research papers………………………………........ 31
2.4 Research Gap ……………………………………………………….. 49
28
Literature Review
2.1 Introduction
The main aim or objective of this literature review is to study and analyse literature
pertaining to e-banking with respect to banking service quality, consumer satisfaction,
consumer behaviour, adoption of technology, trust, customer loyalty, brand
preference and etc. Understanding the rising importance of mobile phones as a new
tool to access services some studies related to m-banking had also been reviewed. The
search process relied mainly on the use of electronic libraries (e.g. Google Scholar,
EBSCO, JSTOR, Elsevier, etc.) by means of keywords. . Books, Journals, Published
research papers related to e-banking in India were also referred in this review.
2.2 Books
The private Indian banks have overshadowed foreign banks in terms of brand
recognition. Even capital market products are being offered along with banking
products. Customers can retrieve information or request services/transactions through
Internet, Interactive Voice Response (I.V.R.), call centre, cell phones and ATMs.
Product-centric view has now been replaced by customer-centric view. One of the
most important developments is introduction of Expert systems into banking sector.
An expert and intelligent system knows about certain categories of problems and is
able to provide solutions or guidance if the user can supply answers to its questions.
An Expert system is designed for a specific field of problems and not as a general tool
(Kulkarni & Desai, 2004).
Cash is the focal point of the fund flow in every business. However, cash has been
used as a narrow term representing currency notes or coins only. Therefore, to
overcome this deficiency Reserve Bank of India introduced number of e-banking
initiatives to develop paperless payment and the new settlement systems like
Electronic Clearing System (Credit/Debit), Electronic Fund Transfer (EFT), National
Electronic Fund Transfer (NEFT), Real Time Gross Settlement System (RTGS) etc.
Now customers use internet banking facility as information point and as counter of a
bank as well (Murli & Subbakrishna, 2012).
29
Saving money is currently no longer kept to the outskirt of branches were one needs
to approach the branch face to face, to pull back money or store a check or demand an
announcement of records. In genuine model of Internet managing an account, any
request or exchange is prepared online with no physical reference to the branch
(anyplace keeping money) whenever. Giving Internet managing an account is
progressively turning into a "need" than a "decent to have" benefit. The net keeping
money, accordingly, now is even more a standard instead of an exemption in many
created nations because of the way that it is the least expensive method for giving
managing an account benefit (Gupta & Gupta, 2013).
Today, any house PC is capable of carrying out banking and shopping via internet.
Remote banking has significant advantages for the service providers, achieves greater
efficiency internally and helps to provide its customers an improved level of service,
and opens up intelligent marketing options. The customer can control performance of
portfolio, flow of savings and current accounts, view market dynamics and changes,
do scenario analysis, run queries and execute transactions on a real time basis,
anytime anywhere (Agarwal, 2012).
Biggest advantage of using computers in banking is better customer service.

Computerised banks respond quickly to service requests of customers. E-banking uses
infrastructure made for current digital age to create local and global opportunities. E-
banking encompasses broad range of operations like electronic mail to improve
communication, provision of online information and service, efficient and cost
effective services and non-physical interaction (Muraleedharan, 2009).
Other coin side of e-banking is it‟s susceptible to risks related to governance, legal,
operational and reputational matters. Therefore, policy matters have modified their
regulatory rules to achieve basic goals of: ensuring safety and soundness of banking,
market discipline protecting customer rights and public trust in e-banking systems
(Kumar, 2010).
30
2.3 Ph.D. Thesis and research papers
Kumbhar(2011) concentrated on demographic profile of the customers and its

association with observation about administration quality, benefit value and general
fulfilment in e-managing an account. He found that, demographic attributes (aside
from sex) were impacting seen benefit quality, saw value and fulfilment in e-heating.
Comes about demonstrated that, apparent administration quality, saw value from e-
managing an account administration and general fulfilment in e-keeping money vary
by age aggregate, level of training, calling of the customers and wage level of the
customers. Be that as it may, no distinction in impression of administration quality
saw value and general fulfilment in e-managing an account by sex was found. On the
premise of his outcomes he prescribed brokers to build up their administration and
elements of e-managing an account benefit as per the unique needs of the customers
having a place with different age bunches, level of training, calling and pay level. He
likewise found that youthful, exceedingly taught and higher wage expect more
components in e-keeping money since they have smart thought about utilizing cutting
edge administrations.
Sasikala(2013)conducted study to find the interrelationships between service quality

attributes, customer satisfaction and customer loyalty specifically in the retail banking
sector. The author collected data from 200 retail banking customers from different
banks in Vellore District and employed SERVQUAL scale to use as a measurement
tool to study the customers‟ loyalty. As per the study there is an association between
demographic variables like marital status, income and customer satisfaction except
level of education. There is an association between other demographic variables like
gender, age, marital status, employment status and high quality, satisfaction and
loyalty. She also found significant relationship between Income and high quality and
Loyalty and concluded that SERVPERF is superior to SERVQUAL in retail banking
Jamal (2004) provided support for a solid hypothesis which demonstrates relationship
between mental self portrait compatibility, fulfilment and brand inclination among
customers of retail managing an account as a rule. He contended that, mental self
portrait harmoniousness can be known as a solid predictor of fulfilment and brand
inclination in the retail managing an account sector. His finding endorses the idea that
customers may favour brands that have pictures perfect with their impression of self.
31
Bauer, Hammerschmidt, and Falk (2005) validated an estimation show for the
worker of web-based interface quality in view of the measurements like security and
trust, essential administrations quality, cross-purchasing administrations quality,
added value, exchange support and responsiveness, on the premise of exact studies in
the field of e-keeping money. According to their discoveries measurements which can
be grouped into three administration classes: centre administrations, extra
administrations, and critical thinking administrations.
Menor and Roth (2007) conducted a study which therefore reported a two-stage
approach for the advancement and approval of new multi-item estimation scales
mirroring a multidimensional build called new administration improvement (NSD)
ability. NSD skill implies an organization's ability in sending assets and schedules, for
the most part in mix, to accomplish a sought new administration result. This fitness is
working as a multidimensional build reflected by five corresponding measurements:
NSD prepare center, market keenness, NSD procedure, NSD culture, and data
innovation encounter. In the main phase of measure improvement, we examine
judgment-based, ostensible scaled data gathered through an iterative item-sorting
procedure to evaluate the provisional unwavering quality and legitimacy of the
proposed estimation tools. Appeared in a showing that a diminished arrangement of
estimation tools have sensible psychometric properties and, along these lines, are
valuable contributions for multi-item estimation scale improvement. They likewise
directed a confirmatory factor investigation of the five NSD skill measurements
utilizing study data gathered from an example of retail bank key witnesses and
affirmed the consistency of dimensionality, unwavering quality, and legitimacy of the
proposed five multi-item estimation scales.
Jun and Cai (2001) focused on the issues corporate with Internet managing an
account benefit quality. They contented investigation of customer tales of basic
episodes in Internet managing an account and distinguished a total of 17 dimensional
factors of Internet keeping money benefit quality, which can be grouped into three
enlarge classes i.e. customer benefit quality (ten measurements: unwavering quality,
responsiveness, skill, kindness, validity, get to, correspondence, understanding the
customer, joint effort, and consistent change), managing an account benefit item
quality(one measurement of item assortment/differing highlights) and online
32
frameworks quality (six measurements: content, precision, usability, opportunities,
style, and security). They uncovered that, regarding recurrence of references to the 17
measurements, no significant contrasts exist between Internet driven banks and
conventional banks offering Internet managing an account benefit. The most regularly
said measurements, as the fundamental wellsprings of fulfilment or disappointment,
were unwavering quality, responsiveness, get to, and exactness.
Dangolani (2011) investigated the effect of data innovation in the keeping money
arrangement of Bank Keshavarzi I.R.Iran. Data was acquired through the customers
and the workers. The gathered data was dissected was examined utilizing the correct
rate and the 5-direct Likert scale toward decide the impact made by Information
innovation in the managing an account framework operations. It was found that IT
adds to the managing an account framework in three distinctive ways i.e. efficient for
the customers and the representatives prominently, decrease of the costs and
encouraging the system exchanges.
Soukal and Hedvicakova (2011) concentrated on retail center saving money

administrations market in the Czech Republic. They introduced the data examination
results from master web-framework for customer's bank costs calculation and ongoing
bank offer correlation. Five customer profiles by particular frequencies of bank
administrations use were distinguished by utilizing non-progressive bunch breaking
down strategy. The study expresses that among the e-managing an account populace
there are expectable bunches so the unforeseen group little specialists that shouldn't
utilize retail items and group of solid work area use inclination customers by
complexity to enacted e-keeping money.
Ariff, Yun, Zakuan, and Jusoh (2012) examined the utilization of E-SERVQUAL
(measurable model) scale to decide measurements of e-SQ for web managing an
account benefits in Malaysia. On the premise of past studies led. They planned
another applied model of eight measurements' efficiency, satisfaction, framework
accessibility, protection, responsiveness, contact, confirmation, and site stylish to
quantify e-SQ for web saving money. They adjusted initial six measurements from E-
SERVQUAL scale and other two in light of audit and dialog with e-SQ specialists.
They connected accommodation testing and gathered data from 265 web keeping
money costumers of one of the business bank in Malaysia. They watched that
33
measurements of e-SQ for web keeping money are affirmation situated efficiency-
framework accessibility; protection, contact-responsiveness, and site feel and guide.
The suggested interpretation and reorganization of E-SERVQUAL measurements and
items when they are utilized as a part of inspecting measurements of e-SQ for web
managing an account.
Sarokolaei, Rahimipoor, Nadimi, & Taheri(2012)reviewed the literature to

decipher four categories of draw backs of e-banking related infrastructure i.e.
professional and technical barriers, legal and social barriers, strategic barriers, and
financial and economic barriers. They investigated about these four draw backs in e-
banking industry in Iran. They collected data from 100 e-banking professionals
through questionnaires. Their statistical analysis revealed that except financial and
economic limitations; other barriers are as an obstacle to the development of e-
banking.
Zavareh et al.(2012)assessed the use of E-SERVQUAL scale to construct e-Service

Quality (e-SQ) for internet banking services. They also tried to examine the impact of
e-SQ on e-Customer Satisfaction (e- CS). They generated construct of e-SQ for
internet banking services on the basis of the E-SERVQUAL instrument, dimensions
used to measure e-SQ in internet banking in USA, Hong Kong, Taiwan, Sweden and
UK, and the expert feed backs. They gathered their primary data from 392 internet
banking costumers of four main public banks in Iran. They observed that efficient and
reliable services, fulfilment, security/trust, site aesthetics, responsiveness/contact, and
ease of use constitute e-SQ for internet banking services in Iran. They also noticed
that there is a significant positive relationship between e-SQ and e-CSI in the internet
banking. Result of their regression analysis confirms that security/trust, site aesthetics,
and ease of use of the internet banking services have positive effects on e-CS.
Ariff, Yun, Zakuan, & Ismail (2013) tested the relationship and the impacts of e-SQ
and e-Satisfaction on e-Loyalty in internet banking. They designed modified version
of E-SERVQUAL instrument to determine e-SQ for internet banking service of a
commercial bank in Malaysia. Respective Data was collected from 265 internet
banking costumers. Their findings revealed that e-SQ for the internet banking service
constitute assurance-fulfilment, efficiency-system availability; privacy, contact-
responsiveness and website aesthetics and guide. It was also noticed that e-
34
Satisfaction was positively impacted by website aesthetics and Guidelines, Efficiency-
System availability and Contact-Responsiveness. E-Satisfaction was positively
significant to e-Loyalty. E-Satisfaction partially mediated the association of Website
aesthetics and Guide of e-SQ and customer e-Loyalty. They observed that some of the
important features to internet banking users are attractiveness and appearance of
banks website, and the data and guidance provide by the websites. The study reflected
that in internet banking, apart from technical and functionality aspects of banks
website e-SQ, the aesthetic value and proper guidance of the websites are also
important to ensure quality of e-SQ that leads to e-Satisfaction and e-Loyalty.
Hamidi, Mahdi, Nafarieh, Hamidi, & Robertson(2013)stated a personalized

security model having highly secured E-banking transactions against fraud. They
presented a model which employed Flask architecture in cloud environments to
effectively avoid fraudulent transactions and operations. They proposed regulations
and algorithms to meet various organizational requirements for fraud detection.
Subsequent performance analysis revealed reduction in risk of fraud.
Aliyu, Rosmain, and Takala (2014) provided a model with five components on
measurements like cost, comfort, security, internet managing an account and customer
benefit conveyance. On testing the speculations by utilizing Structural Equation
Modelling (SEM) they investigated that security and accommodation are the real
drivers of administration conveyance in internet managing an account sector in
Malaysia. They likewise found a solid exact proof for measuring customer fulfilment
with setting to electronic managing an account administration.
Amran, Rahman, Yusof, and Mohamed(2014) critically dissected the present

practices of the Islamic Microfinance Institutions (IMFIs) in the parts of the social
values from the Islamic view point that can give a positive commitment to Islamic
microfinance, the utilization of Mobile Banking on its ability to upgrade the entrance
of money related administrations, and the usage of Mobile Banking in encouraging
the bookkeeping data framework. They watched that religion plays a critical
component in the accomplishment of social values and execution and IMF is an
intense instrument to wipe out destitution. They prompted that IMF must be executed
as per shariah-agreeable methodology as it covers the competency of IMFI's
Accounting Information Systems (AIS) in monitoring its bookkeeping action in
35
conjunction with IT assets which basically incorporate the arrangement of advance
reimbursements and dispensing. They arrived at such conclusion that Mobile Banking
(MB) is a fitting system for cost lessening and upgrade of adaptability, since it offers
financially savvy benefit conveyance directs in accomplishing the objective of
financing the poor in the remote zones and MFIs will have the capacity to settle
overhead expenses and there will be a diminishment of operation expenses as manual
gathering and money taking care of.
Daneshgadeh and Yıldırım (2014) empirically examined the components affecting

web keeping money (IB) use by Turkish bank customers. They created and approved
an extraordinary web saving money utilization demonstrate which is called as IBUM.
Their underlying model was having ten factors named convenience, usability, control,
social impact, similarity, hazard, site highlights, partnership benefit, attention to
administration and personalization that influence web managing account utilization.
This model was tried against both estimation and auxiliary models. They saw that
similarity has the most critical impact on web keeping money use which is then trailed
by collusion benefit, convenience, personalization and fall of utilization. Promote they
changed their fundamental model to discover the between connections among
components. This last IBUM comprised of seven factors clarifying 65% of the change
in web managing an account application.
Fonseca (2014) conducted an insightful similar investigation of EU 27 nations and

distinguished range wised e-keeping money client fragments of Portuguese natives. A
survey was utilized for data gathering from 2358 respondents as test populace.
Advance data examination was done through Latent Class Models (LCM), which
uncovered three sections in EU 27 (Portugal is in the poorest group, concerning the
indicators utilized, with Greece, Spain and Cyprus) and two e-keeping money client
fragments in Portuguese residents: Those who don't chance (49%), and Those who
chance (51%).
Kirakosyan & Dănăiaţă(2014)mainly concentrated on the association between

communication management in banking system and the customer satisfaction and
loyalty/retention. They considered Electronic Communication (e-Communication)
like collaborative projects, blogs, content communities, social network sites, virtual
game world, web-sites and electronic mailsasmain variable on customer satisfaction
36
measurement. They also considered Social Media as an important communication tool
with existing clients and prospective clients. They concluded that banks need to make
the paradigm shift in management practices by continuous innovation in the service of
customers.
Masrek, Mohamed, Daud, and Omar(2014) investigated the relationship between

innovation trust and versatile saving money fulfilment level. They tried three
gatherings of innovation trust to be specific, the portable system, the versatile keeping
money site and the cell phone (i.e. PDA) against portable keeping money fulfilment.
They made study of 312 of portable keeping money customers in Malaysia, and
investigated that three innovation trusts have coordinate positive association with
versatile managing an account fulfilment. Comes about additionally expressed the
significance and essentialness of innovation trust in anticipating portable saving
money fulfilment.
Railienė(2014) focused on hypothetical and methodological thinking of changes in

relationship keeping money in light of changing monetary conditions and utilization
of IT as correspondence channel. They found the extension and significance of
delicate data valuation and worthiness of correspondence directs in creating keeping
money connections. In this manner, they conceptualized and created relationship
managing an account upkeep with valuation of business recognitions to IT utilization,
trust, association level and fulfilment with connections from one side and, from
opposite side, valuation of back establishment's utilization of IT, arrangement,
measures and conditions connected for looking after connections.
Santouridis and Kyritsi (2014) conducted a research to discover the most

remarkable factors that impact Greek bank customers in regards to appropriation of
web managing an account. A questioner controlled poll was utilized with the end goal
of data accumulation. They planned their survey by the assistance of adjusting
Technology Acceptance Model (TAM) and by consolidating outside factors in view
of pertinent writing. The poll toward the start was tried on directors of 3 bank offices
and 11 bank customers as a pilot. Data was gathered from 266 web experienced bank
customers in the Greek area of Thessaly. Inert factors inside the survey were
recognized through Principal components investigation and between item examination
was utilized to check the scale's factors for interior consistency and unwavering
37
quality. They examined the impact of the outside factors and TAM-construct builds
with respect to web saving money reception by means of direct relapse investigation.
Critical effects of customer discernments about handiness, validity and effortlessness
of utilization of web putting money on aims towards utilizing this saving money
channel were investigated. Encourage it was seen that space particular
imaginativeness and fulfilment with ATMs can emphatically gauge customer utilize
expectations.
Shaikh and Karjaluoto(2014) analysed and blended past existing investigations of

m-managing an account selection and mapped the real hypotheses that researchers
have used to estimate customer expectations to embrace it. They watched that the m-
keeping money reception writing is divided and depends on the innovation
acknowledgment model and its adjustments, uncovering that similarity (with way of
life and gadget), saw convenience, and state of mind are the hugest influencing factors
of expectations to embrace m-saving money benefits in created and creating nations.
They additionally watched that surviving writing is con fined to its restricted focus on
SMS keeping money in creating nations and there is absence of research which
addresses the utilization of m-managing an account application by means of advanced
cells or tablets or considers the outcomes of such use.
Akhisar, Tunay, and Tunay (2015) investigated the endeavours of the bank's
profitability execution of electronic-based keeping money administrations. They
dissected impacts of ROA and ROE execution through data of 23 created and building
up nations' electronic saving money benefits between 2005 to 2013 by element board
data strategies. They found that bank profitability of created and creating nations been
impacted from the proportion of the quantity of branches to the quantity of ATMs is
exceedingly huge and electronic keeping money benefits in critical. They found that a
few factors are as opposed to the normal negative relationship, as a result of differing
qualities in the level of improvement of the nations, the socio-social structure and
electronic managing an account framework.
Al-Qeisi and Hegazy (2015) investigated whether data innovation use is ubiquitous,
particularly innovation imported into non-mechanical countries. They gathered their
data from 677 genuine web keeping money clients in Egypt, Saudi Arabia, and Jordan
through on the web/disconnected poll and inspected the attack of the data to the
38
strategy through basic condition displaying. They investigated that encouraging
conditions were not solid deciding factors of utilization conduct and social impacts
were powerless determinants of conduct expectations. Facilitate, they watched that
key determinants of web managing an account utilization conduct in each of the three
nations were execution hope and exertion hope.
Arayesh(2015) used enlightening correlative model to explore relationship amongst

Technical and Legal factors with propensity of the villagers to utilize e-keeping
money administrations. A survey was outlined in view of the reasonable foundation of
the topic and the targets and theories of the study. Board of specialists in horticultural
preparing and development including the educators at the Islamic Azad University of
Ilam and Ilam University affirmed the relevant and facial legitimacy of the survey.
Cronbach's Alpha coefficient value (α=84.4) expressed that poll can finely evaluate
the research factors. Data was gathered from 120 customers of country branches of
KESHAVARZI Bank in Ilam Province, picked through specimen measure assurance
recipe and utilizing stratified irregular examining technique. Data was dissected
utilizing SPSS; unmistakable insights (focus arranged measurements and conveyance)
and expository insights (Spearman's Correlation Coefficient with a specific end goal
to test the co social theories of the research) were done. Comes about expressed that
Technical and Legal factors have a noteworthy effect of the degree of the propensity
of the villagers to utilize e-managing an account administrations of the
KESHAVARZI Bank at the 99% level.
Baptista and Oliveira(2015) suggested an imaginative and complete hypothetical

model that consolidates the expanded brought together hypothesis of acknowledgment
and utilization of innovation (UTAUT2) of Venkatesh, Thong, and Xu (2012), with
social moderators from Hofstede, giving new bits of knowledge into factors affecting
the acknowledgment and how culture impacts singular utilize conduct. They tried this
model utilizing basic condition demonstrating (SEM) and found that execution
anticipation, hedonic inspiration, and propensity are most critical forerunners of
conduct aim. They likewise saw that the propensity and culture moderator
consequences for conduct goal over utilize conduct were the fundamental imperative
factors, while clarifying the versatile managing an account utilizes conduct. They
39
additionally watched that the most critical social moderators are cooperation,
instability evasion, fleeting and control remove.
Buil, Catalán, & Martínez(2015)investigated the concept of corporate brand identity

from the employee perspective in the UK financial banking sector and analysed the
link between brand identity management and employee attitudes and behaviours.
Based on their findings they suggested that special attention should be paid to the
corporate brand identity management, given its impact on employee commitment with
their organisations, as well as their brand performance and satisfaction.
Fenu and Pau(2015) evaluated the administrations of off-branch saving money

offered by a few Italian banks and found that versatile applications have outperformed
the portable web direct in fulfilment of the offer, because of the way that extra
capacities of cell phones make propelled components and applications conceivable.
They likewise encouraged a point of view toward the not so distant future and
proposed that versatile marketing and portable recommender frameworks can
significantly exploit being run locally on gadgets, making it attractive for
organizations to contribute on outline of portable applications.
Montazer and ArabYarmohammadi (2015) discussed about making a phishing

identification framework for e-keeping money framework in Iran. Considering the
way that recognizable proof of the remarkable elements of phishing is one of the
critical requirements while planning an exact security arranged framework; firstly,
they found the powerful components of phishing that best fit the Iranian bank locales
and arranged a rundown of 28 phishing indicators. They utilized element
determination calculation in light of unpleasant sets hypothesis to distinguish six
principle indicators as the most influencing factors. Later they built up the fluffy
master framework utilizing these indicators. They could propose a framework is
equipped for deciding the Iranian phishing destinations with a sensible speed and
exactness and efficiency of 88%.
Sanli and Hobikoğlu (2015) examined the advancement of web managing an account
instruments connected in Turkish keeping money sector and results of these tools, and
responses of buyer in this improvement level in a structure regarding economy.
Utilizing auxiliary investigation, they additionally checked the adequacy of Turkish
40
managing an account industry by method for imaginative items and procedures made
by web saving money item directs rehearsed in Turkey. They inferred that the
quantity of items utilized as a part of web managing an account and customers making
utilization of these administrations impressively increments in time. They additionally
watched that Turkey has not came to required level of web keeping money when
contrasted and different specimens on the planet and scattering of the electronic
administrations requires some essential safety measures. For accelerating
improvement of web keeping money they recommended overcome of conflict
between web framework and managing an account industry security, expansion of
saving money items and reinforcing the understanding of inclination of utilizing web
saving money.
Stoica, Mehdian, and Sargu (2015) studied the route in which the budgetary
advancement appeared by Internet saving money administrations can add to the
development of the efficiency of Romanian banks. They connected DEA to process
the total efficiency score for each of the 24 banks in their example and used PCA to
order the banks into various practical key gatherings in view of their relative
efficiency scores. They found that there are not very many banks in their specimen
that have used Internet saving money benefits in their generation procedure to expand
their efficiency level.
Takieddine and Sun (2015) probed why diverse countries on the planet display
distinctive levels of Internet saving money reception. They likewise recommended an
Internet saving money dissemination display that can test the impact of temperate,
mechanical and social components on Internet managing account dispersion, at the
nation large scale level. They took secondary data from an example of 33 European
nations to measurably test guessed connections in the research demonstrate. They
watched that the impacts of financial and innovation related factors on Internet saving
money dispersion are completely interceded by Internet get to. They likewise found
that distinctions in Internet saving money dissemination and Internet access crosswise
over various nation gatherings is interceded by national culture.
41
Tunay, Tunay, and Akhisar(2015) analysed the cooperation between web managing
an account and bank execution with the assistance of board causality tests.
Demitrescu-Hurlin board causality test was employed to examine managing an
account data of 30 European nations for the period 2005-2013. To quantify bank
execution ROA and ROE proportions were utilized. Testing was done on entire
example comprising of Euro Area and alternate nations in Europe as two sub-tests.
They recognized a solid relationship through web keeping money to the bank
execution in the Euro Area nations and for whatever remains of the Euro Area nations
are likewise not decided causation essentially in both bearings. They likewise found a
noteworthy association regarding web managing an account to execution of the bank
considering the entire example
Zhao and Balague (2015) suggested ascertained rules for branded application
configuration by discovering the distinctive levels of systems that ought to be thought
about by organizations. They focused on five business targets (correspondence,
customer relationship administration, deals, item development, and marketing
research) and distinguished five sorts of branded applications (tool, amusement,
social, m-trade, and outline driven). They proposed three useful building pieces to
decide how versatile components, social elements, and brand specify components
ought to be fused into branded application advancement. Taking after a more far
reaching way to deal with address selection of portable keeping money goal
Afshan and Sharif (2016) analysed the undiscovered (behavioural, ecological and
mechanical) measurements of versatile saving money acknowledgment. They sent
CFA and SEM to break down the data assembled from test graduation understudies.
Their study tried the part of mechanical and natural factors in estimating behavioural
goal of people to receive versatile saving money by incorporating three pre-set up
structures of UTAUT, TTF and ITM. They distinguished noteworthy commitment of
undertaking (TAC) and innovation attributes (TEC) in encouraging errand innovation
fit (TTF). It was observed that essential level of trust is encouraged by basic
confirmation (SA) and nature with bank (FB). Critical relationship of undertaking
innovation fit (TTF), Initial trust (IT) and encouraging condition (FC) with aim to
embrace m-saving money was additionally watched.
42
Asad, Mohajerani, and Nourseresh(2016) attempted to break down the principle
factors impacting customer fulfilment in web saving money framework to organize
cause and influence connections. They discovered seven most imperative factors
(counting 27 estimation items) influencing customer fulfilment in web keeping money
after writing survey. They planned and disseminated an online poll connection to
educators and understudies as a gathering of master clients of web saving money and
gathered 20 finished surveys. Dim based DEMATEL techniques was utilized to
examine associations between the factors. According to Experts' conclusions dim
numbers were changed over to fresh numbers and all assessments were bound
together into a solitary view. Later the fresh numbers were standardized in
DEMATEL and total network of every component was ascertained. At last, the values
of R, D, R+D and R-D were figured. Influencing Factors on customer fulfilment in
web managing an account framework were organized on the premise of the
circumstances and end results connections of factors examined.
Baptista and Oliveira (2016) proposed a hypothetical model as for factors affecting
acknowledgment of portable saving money client. They integrated perceptions from
existing research to overhaul it to ebb and flow best in class information. They
utilized a mix of weight and meta-investigation to discover the recurrence and
significance of the most utilized develops and their connections. They shortlisted 57
articles with essential quantitative factual data. They watched that best predictors of
the aim to utilize the versatile keeping money administrations were disposition,
introductory trust, saw hazard, and execution hope. As far as utilization of versatile
keeping money the best foreseeing factors were goal and execution hope. Not with
standing that, they discovered rundown of the most imperative predictors like
encouraging conditions on demeanour, undertaking innovation fit on execution hope,
and execution hope on starting trust.
Casu and Ferrari(2016) evaluated the impacts of regulatory change, beginning from
the commencement of the Single Market in 1992, on efficiency of bank and surveyed
the cross-outskirt focal points of joining as far as innovative overflows. To gauge
efficiency change and recognize mechanical crevices they used a parametric meta-
wilderness Divisia record. At that point they got the degree to which profitability
merges inside and crosswise over managing an account sectors as a consequence of
43
mechanical overflows. They watched that in Eurozone nation‟s efficiency
development has happened because of mechanical advance, both at the nation and the
supra-nation level; however the last moderates or now and again inverts since the
onset of the emergency. They distinguished that advance made toward the best
innovation on occasion happened because of mechanical overflows. Huge long haul
contrasts in efficiency were additionally distinguished in light of the fact that meeting
is not finished. Innovation upgrades are generally amassed in less managing account
enterprises.
Chaouali, Ben Yahia, and Souiden(2016) evaluated parts of counter-similarity

inspiration, social impact, and trust in clarifying customers' expectation for selection
with Internet saving money administrations. They assembled data from 245
respondents and broke down utilizing Smart PLS 2.0 M3. They discovered that trust
in the Internet keeping money administrations, trailed by customers' counter-
similarity inspiration and execution hope can influence expectation to receive Internet
managing an account. They likewise discovered roundabout effect of social impact
and trust in the physical depend on customers' goal to receive Internet managing an
account, though exertion anticipation was having no effect on it.
Froud, Tischer, & Williams (2016)stated and applied the concept of critical business
model analysis to explore dysfunctional behaviour in the context of UK retail banking
industry and to outline possible policy approaches. To reframe the banking sector as
one based on mimetic behaviours, including miss-selling of financial services and
opaque charging they used critical business model analysis. They highlighted the
potential importance of a wider diversity of business models within the sector as a
way of offering customers a different choice and limiting the scope of financial zed
efforts.
Iberahim, Mohd Taufik, Mohd Adzmir, & Saharuddin (2016)tested the current
level of ATMs service quality at one of the main ATM service points of a Malaysian
bank. The aim of the research was to determine the relationship between the reliability
and responsiveness of ATM services with customer satisfaction and verify the
determining factors for service expansion. A questionnaire survey was used for data
collection and observations from 271 respondents and service points. Survey result
stated and advised that, to maximise customer satisfaction three out of four elements
44
of service quality dimensions (consistency, dependability and timeliness) are the
major important factors.
Jalil, Fikry, & Zainuddin (2016)reviewed the literature in relation with the store
atmospherics, perceived value, customer satisfaction and behavioural intentions and
informed a research model which aimed to examine the relationship between store
atmospherics (facility aesthetics, ambience, spatial layout and employee factor),
perceived value and behavioural intentions (return intentions and positive word-of-
mouth) mediated by customer satisfaction. On the basis of mechanism which
measures accessibility, memo ability, security and vulnerability features in entity
authentication methods.
Kiljan, Vranken, & van Eekelen(2016) suggested the feasibility as an additional

dimension which quantifies aspects related to the secure functionality of transaction
scrutiny methods. In addition, they suggested the use of this evaluation mechanism by
multiple references to reduce personal bias. Seven experts evaluated four
implementations and eight proposed scrutiny methods for online banking. They found
that the mechanism can be applied on a expanded range of authentication methods,
since it is capable to evaluate methods based on different information schemes. They
advised to take care because; evaluations are performed by multiple experts, due to
the amount of subjectivity inherent in the mechanism and in the different opinions of
the sample population.
Kurila, Lazuras, and Ketikidis (2016) assessed the impacts of message encircling
on general society acknowledgment of branchless managing an account applications
utilizing the bound together hypothesis of acknowledgment and use of innovation
(UTAUT). Outlined anonymous polls on innovation acknowledgment factors got
from the UTAUT were filled by grown-up holders of a dynamic financial balance
who were doled out haphazardly into three message surrounding conditions (pick up
casing, misfortune casing, and control condition). They recognized that message
encircling controls did not influence straightforwardly self-reported scores on
innovation acknowledgment factors according to after effects of Analysis of change
(ANOVA). Be that as it may, consequences of direct relapse investigations delineated
that message encircling separated the interrelationships between utilization aims and
related UTAUT factors between conditions. Relationship of sex with execution
45
anticipation in foreseeing use aims in the control gather condition was affirmed by
directed relapse examination. It was additionally investigated that message encircling
controls influences the route aims to utilize innovation identify with innovation
acknowledgment favourable circumstances.
Laukkanen(2016) posited that all advancements meet purchaser resistance, and

beating this restriction must happen preceding reception of item. They tried how five
hypothesis driven reception downsides i.e. utilization, value, hazard, convention, and
picture and three buyer demographics i.e. sex, age, and salary influences buyer
reception as opposed to dismissing choices in versatile and Internet keeping money.
They gathered required data of 1736 purchasers through across the nation review in
Finland. Theories were verified utilizing twofold genuine models looking at versatile
managing account adopters versus non-adopters, portable keeping money delayers
versus rejecters, and Internet saving money delayers versus rejecters. They found that
the most grounded inhibitor of Internet and versatile managing an account
appropriation is the value constraints, while customary downsides clarify the
dismissal of Internet keeping money. It was distinguished that selection and dismissal
choices can be fundamentally estimated through demographic classifications like
sexual orientation and age.
Ling, Fern, Boon, and Huat(2016) studied and analyzed the factors which influence
customer fulfilment towards Internet managing an account. They discovered
administration quality, website composition and substance, security and protection,
accommodation and speed as five factors which impacts customer fulfilment toward
Internet keeping money. They assembled required data from 200 working grown-ups
through poll review regarding above factors that impact customers' choice to do
Internet Banking. They found that website composition and substance,
accommodation and speed are firmly associated with customer fulfilment toward
Internet managing an account.
Malaquias and Hwang(2016) investigated about (Mobile Banking) MB confide in

Brazilas as a creating nation having gigantic potential for upgrade of managing an
account items .To study database of 1077 polls they utilized Confirmatory Factor
Analysis and Structural Equation Modelling. It's been distinguished that deciding
factor of trust had comparative conduct when contrasted with determinants of trust
46
called attention to in the writing beforehand. They additionally demonstrated a sort of
data asymmetry that could be alleviated keeping in mind the end goal to develop trust
working in MB and advance its selection. (Sham variable for college classes in
innovation).
Ozkan-Tektas & Basgoze(2016)examined the mediating role of recovery of service

judgments between pre-recovery emotions and post-recovery satisfaction and studied
the role of firm reputation in this mediation context. Data was collected from 366
customers who had experienced a banking service failure and complained to a third
party using a moderated mediation framework. It was found out that relationship
between pre-recovery feelings and satisfaction level was mediated by distributive,
procedural, and interactional justice dimensions. They stated that the relationship
between emotions and satisfaction via distributive and interactional justice is built by
firms‟ reputation but not via procedural justice.
Reguera-Alvarado, Blanco-Oliver, & Martín-Ruiz (2016)forecasted the

relationship quality (satisfaction, trust, and commitment) of a customer by using both
the quality of service operations and the application of e-banking, on the relationship
quality (satisfaction, trust, and commitment) of a customer with a Spanish saving
bank. They collected data of almost one thousand users through online questionnaire
and internal bank databases and examined three alternative models employing PLS
path modelling. It was found that both the quality of service operations and the
customer‟s use of e-banking forecast the customer's relationship quality. They
observed that major contributor of relationship quality is the face-to-face service
encounter, however use of e-banking tools was also identified as important element
to enhance the relationship nature of customers in the managing an account industry.
Rodrigues, Oliveira, and Costa (2016) assessed the determinants that influences the
reception of gamification in e-managing an account and proposed a reasonable model
outlining the appropriation of gamified business applications by bank customers, in
setting of e-saving money. To see how bank customers speak to gamified business
programming and its progressions (or changes) after some time, two quantitative
studies (An and B) were led. Data was gathered from 183 (in 2012) and 219 (in 2015)
respondents under study An and B separately. These online bank customers appraised
the significance of factors identified with: socialness, usability, handiness, delight and
47
goal to utilize e-saving money frameworks with diversion elements and meaningful
gestures. It was found that convenience and happiness are between related, and both
have impact in e-managing account utilization.
Sinha and Mukherjee (2016) studied and explored regarding why off branch e-
managing an account in India is not very acknowledged when contrasted with cutting
edge nations. They incorporated develops from the innovation acknowledgment
demonstrate (TAM), dispersions of advancement (DOI) model and trust hypothesis
models. Data gathered through review was investigated utilizing different relapse
strategy. They found that trust on innovation, trust on bank, saw convenience, saw
handiness, many-sided quality fundamentally influences customer to use off branch e-
saving money in India aside from saw hazard.
Szopiński (2016) identified the factors applying an impact on the utilization of web
based keeping money in Poland. Observational material for this study was gotten
from "Social Diagnosis" researches extend, worked by Board of Social Monitoring
working at the University of Finance and Management in Warsawin by 2015.
Aftereffects of direct relapse investigation mirrored that the utilization of the Internet,
exploiting other saving money items and trust in business banks decide the use of web
based managing an account. It was watched that home loans and charge cards two
managing an account items have the greatest impact on the utilization of web based
keeping money.
Hat and Oliveira (2016) suggested a model joining the DeLone& McLean IS
achievement demonstrate alongside the Task Technology Fit (TTF) model to check
the impact of m-depending on individual execution. They assembled data from 233
people as the example through an online review survey. They distinguished that
utilization and client fulfilment are noteworthy points of reference of individual
execution, and the noteworthiness of the directing impacts of TTF over use to
individual execution. They likewise found that there is certain connection of
framework quality, data quality, and administration quality on client fulfilment.
48
Tsionas and Mamatzakis (2016) proposed other criteria for estimation of specialized
efficiency that considers conformity costs in factor inputs connected with changes in
efficiency. They displayed that specialized efficiency depends on alteration costs in
factor inputs. Assessing the proposed show had certain complexities which they
overcome by utilizing a non-parametric Local Linear Maximum Likelihood (LLML).
They employed a complete worldwide keeping money test and evaluated bank
elective profit efficiency over a plenty of nations with solid fluctuation in the hidden
alteration costs. The found that heterogeneity crosswise over nations confirm
demonstrates that change costs because of faculty costs are the most elevated among
cutting edge nations. They likewise saw that rising economies indicate solid potential
regarding efficiency post-budgetary emergency, for the most part because of lower
work modification costs.
Veríssimo (2016) presented unpublished discoveries on m-keeping money application

use to distinguish the potential constraint that as of now confine its more extensive
selection. They employed fluffy set qualitative similar investigation (fsQCA) to test
how saw chance, similarity, saw value, saw usability, age and pay impact portable
managing an account application utilize, and non-utilize. Investigation connected on
exact data test of managing an account customers uncovered that versatile keeping
money application utilize is in connection with high similarity, low saw chance, high
saw convenience, and high saw handiness. It was additionally found that an
arrangement of low saw value, low similarity, low saw convenience, and a high saw
hazard is an adequate condition for portable managing an account application non-
utilize.
2.4 Research Gap
Research gap was identified after review of relevant literatures about electronic
banking in both global and national perspective. Many studies are carried out about
customer and their perception about electronic banking, but there is no relevant study
about customer behaviour about electronic banking in Pune city, so based on above
definition the research gap clearly identified and objectives of the study settled based
on the research gap.
49
CHAPTER 3
RESEARCH METHODOLOGY
Title Page No.
52
3.1 Introduction…………………………………………………………….
52
3.2 Statement of Problem…………………………………………………
53
3.3 Research Process……………………………………………………….
55
3.4 Research Design……………………………………………………….
57
3.5 Explanation of Research Problem……………………………………...
57
3.6 Review of Previous Studies……………………………………………
58
3.7 Constructs of Questionnaire……………………………………………
59
3.8 Objectives of the Study…………………………………………………
60
3.9 Scope of the Study…………………………………………………….
60
3.10 Variables Definition, Setting Objectives and Formulation of Hypothesis…..
60
3.11 Hypothesis of the Study………………………………………………
61
3.12 Sample of the Study………………………………………………….
68
3.13Multi-stage Random Sampling…………………………………………
68
3.14 Nature of Data………………………………………………………..
70
3.15 Data Collection………………………………………………………
71
3.16 Reliability of Questionnaire………………………………………….
51
Page No.
Title
73
3.17 pilot study…………………………………………………………….
73
3.18 Data Analyses and Hypothesis Testing………………………………
74
3.19 Purpose of used statistical tools………………………………………
75
3.20 Limitation of the Study……………………………………………….
3.21 Interpretation and Present of Finding and Recommendation for Future 75

Studies……………………………………………………………..
52
Rresearch methodology
3.1 Introduction
This chapter explains research methodology of the research which is the systematic
way of conducting research. Research methodology is meant as the systematic and
scientific way for problem solving or finding the facts. This chapter reveals how the
present study was conducted. It explains research methods, techniques and logic
behind the study. Each research needs own design to solve problems or finding truth.
This study investigates consumer behaviour toward electronic banking (e-banking) in

Pune city. Banking system plays a critical role in financial market in any society and
obviously banking system as service section, needs to provide qualified service for
users of the financial market. Electronic banking plays very important role in today‟s
business and human life. E-banking creates banking service and opportunities for
bankers to provide high quality services which increase speed and efficiency of its
branches, all around the world. In information intensive era, customers can access to
bank services without physical presence through safe channels of communication. E-
banking services customers can carry out their own banking operations without
having the physical presence at the branches through the communication channels of
safely at any time of the day (24 hours).
3.2 Statement of problem:
Pune city is one of the major metropolitan areas in India. It is also one of the main IT
hubs in India, Pune is also known as one of biggest economic and industrial hubs in
India. Based on these factors, Pune has unique circumstances in business, banking and
electronic banking industry. Pune city is selected for population of the study with e-
banking consumers selected as respondents of the study. In the adoption of electronic
banking, Indian banks seem to be aware of the opportunities the Internet provides. In
fact, Indian banks are moving into modern electronic services to customers at the
higher level and the consumer behaviour has been affected due to e-banking services
provided by the bank.
53
After review of previous studies and finding research gap the main questions of the
study raised, which are as follows:
1. Why consumers behave in this particular way?

2. What is the motivation for this particular behavior?
3. What is the outcome of this particular behavior?
The change in consumer behavior, in turn, has affected the volume and the nature of
electronic banking transactions.
3.3 Research Process
Research process presents overview of series, actions, steps which are necessary to
conduct research effectively. The following chart presents research process of
investigation of customer behaviour toward electronic banking (e-banking) in Pune
city which is the subject of study.
In this research seven steps are taken to effectively carry out of research. These steps
are statement of research problem, review of previous studies conducted on the
subject, variables definition, setting objectives and formulation of hypotheses,
research design and sample of the study, data collection, data analyses and test of
hypothesis and interpretation and presentation of finding and recommendation for
future studies as well as for use of e-banking.
54
Chart 3.1 Research Process
1. Explanation of research problem in

e-banking adoption and customer
behavior in Pune city.
2. Review of previous studies of e-

banking adoption and customer
behavior of e-banking system
3. Definition of variables, objective

setting and hypotheses formulation
4. Research design and sample design
5. Data collection
6. Data analyses and hypothesis testing
7. Interpretation and present of finding

and recommendations for future studies
3.4 Research design
Research design is a theoretical structure within which research is conducted.

Research design is a logical way of measurement, and data analyses. Research design
consists of writing hypotheses and its operational implications to last step of data
analyses.
In this research, flexible design was determined for different aspects of the problem.
The instrument of the research was questionnaire which is first tested by pilot study to
ensure instrument has critical qualities such as reliability and validity. The other
major step in research design was determining the sample size from population of the
study. Sample of the study should represent population of the study. In this research,
based on Cochran‟s formula and Morgan‟s table to estimate optimal size of sample
which represent population of the study.
55
The minimum number of the formulae and tables to obtain 95% confidence for
hypotheses test is around 385, but in this research for best model estimate researcher
considers more than 508 respondents.
Cochran‟s formula
The instrument for observations is a carefully designed questionnaire. Pilot study is

applied from 34 respondents to test reliability and validity of questionnaire. After
pilot study Cronbach's alpha test was applied to test reliability of instrument.
Questionnaire test for reliability reveals that all constructions of instrument are above
87% and it clearly proves that the instrument meets reliability criteria. For face
validity of the instrument, researcher discussed with more than 20 academicians and
professionals in banking industry and instrument designed based on their perceptions.
Cronbach‟s Alpha formula:
Table 3.1 Score table for internal consistency based on Cronbach‟s Alpha test
Cronbach's alpha Internal consistency
α ≥ 0.9 Excellent
0.9 > α ≥ 0.8 Good
0.8 > α ≥ 0.7 Acceptable
0.7 > α ≥ 0.6 Questionable
0.6 > α ≥ 0.5 Poor
56
3.5 Explanation of research problem
In this research two types of research problems are presented, first type of problems is
related to states of nature and second to relationship between variables. The main area
of research problems in this research is related to customer behavior of banking
system in Pune city which is categorized in main three questions:
- Why consumers behave in this way?
This question is related to nature of customer behavior regarding e-banking

services in Pune city. This question is made to understand current situation of
customer behave about electronic facilities of banking in Pune city
- What is the motivation for this behavior?
This question is related to the relation between variables which effect motivation
for current customers of electronic banking facilities in Pune city.
- What is the outcome of this behavior?
This question is related to nature customer behave about current behave of

customer about present electronic banking facilities in Pune city.
3.6 Review of previous studies
Review of literature is one of the main works which is carefully done by researcher to
find out relation between current study and previous studies as well as possible gaps.
After problem formulation, in this study, most relevant literatures were reviewed to
find out previous studies in electronic banking and customer behavior regarding
electronic banking to reach finding research gap. Previous studies, carefully studied
includes; Ph.D dissertations, master dissertations, academic journals, conference
proceedings, government and non-government reports, books, journals, etc.. In this
research, highly significant and related resources were collected and reviewed to
reach the current and latest developments in banking, electronic banking and
consumer behaviour of electronic banking. After that the main gaps of knowledge
about the topic identified and presented in this chapter to help in reaching to
questioners and objectives of current research.
57
3.7 Constructs of questionnaire
In this research main studied were these two aspects, which identified based on
research gap which was found out after reviewing of studies made previously and
consulting with academicians and professionals. These constants and variables
finalized after pilot study to ensure for validity and reliability of instrument.
The constructs of questionnaire were as follows:
1. Personal Information
2. Information about behavior as a consumer
Personal information was recorded based on the following independent variables:
 Name, address, gender, age, nationality, education, occupation,

income,
Information about behaviour as a consumer was also recorded based on the following
independent variables:
 Knowledge about e-banking

 Usage of e-banking
 Reasons for no use of e-banking
 Period of usage
 Number of banks
 Name of the bank
 Usage frequency of e-banking services
 Accessibility of e-banking
 Form of accessibility
 Electronic features
 Difficulty in logging
 Traditional banking
 Visiting bank branches
 Reasons of visiting
 Frequency of bank visits
 Demerits of visiting bank
58
 Data quality issues
 Satisfaction of e-banking
 Services of e-banking
 Users friendliness
 Human contact
 Demerits of e-banking
 Encouragements for using e-banking
In this research, the logic for choosing above variables was to study the
implementation of e-banking in order to understand the role of e-banking in efficiency
of costs, timeliness of services, secrecy, quality of e-banking, to identify the merits
and demerits of e-banking, to identify e-banking products and overall assess of the e-
banking effect on behavior of consumers.
3.8 Objectives of the study
After research problem stated, literature review, objectives of the research are settled.
In this research five objectives settled which are as follows:

2. To understand the role of e-banking as compared to traditional banking, in
terms of cost, efficiency, time, secrecy, quality of services from consumer
perspective in Pune city.
3. To identify the e-banking benefits and problems from consumer point of view.
4. To identify various e-banking products offered by Indian banks towards
consumers in Pune city.
5. To examine the impact of e-banking products on the behaviour of consumers.
3.9 Scope of the study
The study was confined to the consumer behaviour in e-banking in Pune city of
Maharashtra state in India. Pune city is one of the fastest growing industrial hubs in
Maharashtra. Pune attracts students and professionals from all over India and abroad
as it is one of India‟s leading cities. With a total population of about 5,926,606 in
2015, Pune city is one of the fastest growing cities in Maharashtra. People from all
over India are settled in Pune as it offers great careers and job opportunities and a
59
large number of students from various parts of the world are studying in Pune as it
offers best research institutes, information technology (IT) and educational institutes.
Hence Pune city was selected by the researcher for the present study.
3.10 Variables definition, setting objectives and formulation of hypothesis
In this research, after literature review and finding research gap, most related
variables are identified. Variables are identified based on research problem and
research gap which respect to customer behaviour toward e-banking in Pune city.
Gender, age, nationality, education, occupation and income, data quality, exchange
speed, ease use of technology, saving in cost, convenience in banking, security in
transactions are defied as independent variables and consumer behavior towards
electronic banking is dependent variable. Knowledge about e-banking, usage of e-
banking, reasons of no using of e-banking, period of usage, number of banks, name of
the bank, frequency usage of e-banking, accessibility of e-banking, form of
accessibility, electronic features, difficulty in logging, traditional banking, visiting
bank branches, reasons of visiting, frequency of bank visiting, demerits of bank
visiting, reason of choose, data quality issues, satisfaction of e-banking, services of e-
banking, users friendly, human contact, demerits of e banking, encouragements for
use of e-banking.
3.11 Hypothesis of the study
In the present study the researcher wants to find whether data quality, exchange
speed, ease use of technology, saving in cost, convenience in banking, security in
transactions have a positive impact on the consumer behaviour towards e-banking.
 Data quality, speed, ease use of technology, saving in cost, convenience in

banking, security in transactions have a positive impact on the consumer
behaviour towards electronic banking.
60
H0:
Data quality, speed, ease of use of technology, saving in cost, convenience in banking,
security in transactions have no impact on the consumer behavior towards electronic
banking.
H1:
security in transactions have a positive impact on the consumer behavior towards
electronic banking.
3.12 Sample of the study
Sample of the study should represent population of the study. Sampling is one of the
most technical and important part of the research. Correct sampling technique helps to
correct estimation of models in the study. In probability analysis, the confidence level
of test should be 95% which means dispersion is limited to ±2 of standard deviation
of mean data. In scientific research, there are various ways to estimate sample size.
Cochran‟s formula and Morgan‟s table are the most commonly used tools. In this
research 508 respondents selected where as 385 numbers are sufficient number of
observations based on Cochran‟s formula and Morgan‟s table. This criterion provides
more accuracy and confidence of tests and model estimations in this research. The
geographical scope of this research is consumer of e-banking in Pune city. Pune city
is one of major metropolitans in India, so the first technique which used in this
research is geographical sampling to divide Pune city in particular zones, the areas are
as follows: (Since Pune city is one of the large cities in India and the population is
very large), it has been divided into major 15 administrative municipal wards which
each contains 4-7 sub-wards (total No of wards comes to 75). The researcher covered
selected wards for the purpose of primary data collection.
The researcher has selected random sample in each selected ward of Pune city and for
the present study the total sample was 508 people at random. In the focused group,
through interview techniques, the sample of respondents were divided into Indian and
non-Indian consumers and students, self-employed, businessmen/women and whoever
uses the electronic banking services in Pune city.
61
Table 3.2 Pune city consists of following wards:
ADINISTRATIVE SAMPLE SAMPLE

WARDS SUB-WARDS SIZE PERCENTAGE
Palkhi Vithoba
Mandir
KEM Hospital
Kashewadi
Gurunanaknagar
1 Bhawani Peth Mahatma Phule 34 7

Peth Kashewadi
Bhawani Peth
Arunkumar Vaidya
Stadium
Ghorpade Garden
Wadarwadi-
Pandavnagar
Balgandharva
Janwadi-
Gokhalenagar
Ghole Road
Model Colony
2 32 6
Arunkumar Vaidya
Stadium
Narveer
Tanajiwadi
Kamla Nehru Park
62
Mahatma Phule
Mandai
Shaniwarwada
Kasba Peth
Kasba
3 Dr. Kotnis 35 7
Vishrambagwada
Hospital
Tilak Smarak
Mandir
Mahatma Phule
Smarak
Nagpur Chawl
Nagar Road
Shaniwarwada
Vimannagar
Sanjay Park
Kharadi Infotech 39
4 8
Park
Agakhan Palace
Vadgaon Sheri
Bopodi Gaonthan
5 Aundh 39 8
Pune University
63
Aundh ITI
Baner Balewadi
Pashan Sutarwadi
Balajinagar
Vaibhavnagar
Bharati Vidyapeeth
Dhankawadi
Padmavati
Katraj Dairy
6 Dhankawadi 43 8
Katraj Maulinagar
Naidu Hospital
Koregaon Park
Junabazaar
Kumbharwada
Magarpatta City
7 Dhole Patil Road 40 8
Collectorate
Sopan Baug -
Kondhwa Vikasnagar
8 35 7
Wanavdi Wanavdi -
Ramtekdi
64
Kondhwa Budruk,
Gokulnagar
Kedar Vasti -
Azadnagar
Bhagyodaynagar
MIT - Kelewadi
Bavdhan Khurd
Sutardara-
Kishkindha Naga
ARDE -
Mhatobanagar
9 Kothrud 30 6
Gujrat Colony
Vaikunth
Smashanbhoomi
Janata Vasahat
PL Deshpande
Udyan
Suncity Wadgaon
Budruk
10 Tilak Road 35 7
Sarasbaug Parvati
65
Popularnagar
Malwadi
Warje Karvenagar
Shivane - Warje -
Ramnagar
Dahanukar Colony
Deenanath
Mangeshkar
11 40 8
Hospital
Karvenagar -
Gosavivasti
Rajguru Road
Lohegaon Airport
Vishrantwadi
Mhaske Vasti
Deccan College
Yerawda -
12 32 6
Sangamwadi
Subhashnagar
Upper Indiranagar
Salisbury Park
Bibvewadi and KK
Market
13 Bibvewadii 27 5
Shivaji Market,
Gultekdi
66
Gliding Centre
Sadhana Vidyalay
14 Hadapsar 25 5
Mohammadwadi
Khadakmal Ali
Hirabaug
Aranyeshwar
Taware Colony
Sahakarnagar -
Taljai
15 SAHAKANAGAR 22 4
Adinath Society
67
*REFRENCE: Pune Municipal Corporation, Electoral ward classification (2015)
**Note: 15 main wards of Pune city, contains total 75 sub-wards. The researcher has
covered all wards to accurate data collection.
These 15 zones are the main areas of Pune city which have been selected for data
collection from respondents. The second technique used in this research is cluster
random sampling which divided respondent in particular clusters; Indian and non-
Indian consumers and students, self-employed, businessmen/women. This cluster
selected after pilot study and consulting with professionals and academicians. These
two steps reached to 508 respondents based on sampling technics and formula which
explained above.
3.13 Multi-stage random sampling:
Based on above explanations, the optimal random technique, for this research is
multi-stage random sampling. Multi-stage random sampling is probability technics for
sampling which should represent population of the study. This technique ensures to
estimate analyses and models with more than 95% confidence level.
3.14 Nature of data
Data in facts or information when was examined to find out things and make
decisions. Data is the form of raw and intact data can be considered for different uses.
This type of data may not be so much in classification and as long as they are not
categorized, the researcher cannot use and understand them. When the researcher for
the research project, itself would start collecting grow data by using tools called as the
questionnaire and interview. Through of the questionnaire and interview, the
researcher will be collecting raw information and after analysis the result is also
called data.
In the research study the researcher has to collect the data based on topic and field of
study. In the specific context of the research topic “ study of consumer behavior
towards electronic banking services in Pune city” the researcher defined data as “ data
and the information shared by e-banking consumers through questions about use of e-
banking services such as automated teller machines (ATM), Internet banking,
telephone banking, etc.
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The collected data are not the perception of banks and their employees; they are based
on e-banking consumers and officially published information and reports on banking
websites, house magazines, Internet, research journals and articles.
According to Galliers, (1994) data and information are divided in two paradigms:
positivistic (Quantitative) and interpretive (Qualitative).
Quantitative data is based on the use of numbers to access information. In the present
study, the researcher has mentioned certain questions in primary data about personal
information of e-banking consumers in Pune city such as their age, income, etc. This
numerical data can be transformed into useable statistics.
Qualitative data gathers information which is not in numerical form and some non
numerical facts were collected on the basis of qualitative data from consumers
according to their behavior and attitudes towards electronic banking (e-banking)
services in Pune city.
In the present study both quantitative and qualitative methods have been used for
collecting primary and secondary data. Since the goal of this study was to investigate
the consumer behavior towards e-banking services in Pune city, respondents were
required to have used e-banking services such as ATM, Internet banking and
telephone banking prior to completing the questionnaires. The primary data was
directly collected from e-banking consumers in Pune city by the researcher through
the questionnaire and the interviews. The secondary data was available from the
banking and business magazines, banks‟ websites, newspapers and Internet, published
articles and journals.
Chart 3.2: Data types
69
3.15 Data Collection
This research used both primary and secondary sources of data. Primary source of
data is consumer of e-banking service in Pune city. To measure the perception of
respondent‟s questionnaire is used as data collection tool. Dependent and independent
variables measured by carefully designed questionnaire based on Lickert‟s type scale.
In this research, flexible instrument was designed for pilot study step. After pilot
study and discussion with professionals and academicians structure instrument
designed.
Questionnaire as data collection was designed based on objectives and research

questions. This research tried to design brief and non-leading questions but has most
significant and usefulness for collecting data. It also has most necessary information
for respondents.
Chart 3.3: Types of data
The study is aimed to give a better understanding of the complementary nature of e-

banking services in Pune city from consumer point of view. The tools of data
collection from primary sources were:
A. Questionnaire
B. Personal Interview
“The Questionnaire” was developed and used for banks‟ customers. Also
personal interviews were conducted to secure the data regarding their behavior
towards electronic banking.
70
Chart 3.4: Primary Data Collection Methods
A questionnaire was the prime tool which had maximum reach as far as data
collection was concerned. The questionnaire covered some consumer behavioural
questions towards e-banking services in Pune city to know the respondent opinion or
attitude towards the topic. In personal interviews the researcher asked the questions in
a specific order based on the research topic.
3.16 Reliability of questionnaire
Reliability of questionnaire is measured as per Cronbach‟s alpha test, and for any
structure of the instrument the score is more than 87%. For pilot study the total
numbers of observations are 40, to gives unbiased estimation of population which are
consumers of e-banking in Pune city.
As per above explanations, this study was carried out in survey explanatory research
to find pattern of consumer behavior about e-banking sector in Pune city.
Validity of questionnaire
Face validity of the instrument has contributions from 35 academicians and

professionals and samples which are choose for pilot study with 40 respondents. The
other tool for their perception is a questionnaire which contains three options to
measure their perception for each question (statistical variable) of instrument of
research (questionnaire). The average of each question is two. Hence based on the
average, score number of each questions is two and it means all questions of
71
instrument has face validity, after these two main factors of instrument designing, the
instrument prepared for final data collection.
The sources of secondary data of the present study were:
A. Books
B. Research journals
C. Banking and business magazines
D. Articles published in newspapers
E. House magazines of selected banks
F. Banks‟ Websites and Internet
Chart 3.5: Secondary data collection methods
The researcher visited the libraries of various universities such as

Bharati Vidyapeeth University, Savitribai Phule Pune University, British council in
order to collect and study the secondary data and relevant articles.
3.17 Pilot study
Population of consumer of e-banking service in Pune city is huge, therefore after

sampling, the instrument distributed for pilot study to ensure about two most
important criteria of research instrument called; reliability and validity. In pilot study
step, researcher removed irrelevant questions based on reliability score which was less
than 80%. Complicated and irrelevant and leading questions were identified in pilot
72
study step and they were considered in designing of the final questionnaire. Overall,
pilot study is carried out for total of 40 respondents classified to three groups:
1. Consumer of e-banking service in Pune city.

2. Professionals and academicians in e-banking system.
3. Users of academic contributions who are working in baking industry.
3.18 Data analyses and hypothesis testing
Hypothesis is a formal question which researcher tries to solve. In other words,

hypothesis is primary and unproved answer to research question. Hypothesis is also
defined as calculated guess. Main function of hypothesis is to suggest new
observations and experiments. Experiments come from hypotheses testing. In fact
hypothesis is one of basic instrument in research. Decision makers are interested in
hypothesis testing based on available data. In scientific research, most of the times
parameters of population is not available, therefore sampling data helps to optimal
estimation which help decision makers to arrive at optimal and accrue decisions.
Probability testing of hypothesis which is supported by scientific and probable
sampling in academic and scientific research.
Hypothesis is an educated guess which gives answer to describe relation between

variables. This relation can mainly proposes in three ways:
1. To study the effects of variables

2. To study the relationship between variables
3. To study the difference (variance) of variables.
In this research both types of probability and non-probability statistics applied. The
statistical tools which were used as follows:
Frequency, percentage, chi square, pie chart, Cochran Q Test, chi square test of
contingency, Pearson Chi-Square, Likelihood Ratio, Linear-by-Linear Association,
sign binomial test
73
3.19 Purpose of used statistical tools:
- Frequency is applied for descriptive statistical part especially for constricting

one to identify the number of observations.
- Percentage is applied to find out the proportion of any variable in analysis of

any question of the instrument.
- Chi square is the test for nominal variables. Chi square is highly relevant
based on sample of the study. In this study sufficient observations are
considered for analysis, so Chi square based on nature of data which are
nominal is best choose for analysis.
- Pie chart is one of main types of visual presentation of data which is mostly
used for comparing of data distribution.
- Chochran‟s Q test is used for outcome variables which will have two possible
responses. Blocks are randomly selected among possible blocks.
- Chi square test of contingency is calculated based on contingency table to

present cells of the table if test is significant.
- Pearson Chi-Square is an optimal for unpaired data which are selected among
large number of samples
- Likelihood Ratio is a statistical test which ensures choice optimal model based
on goodness of fit of models.
- NPAR TESTS is a set of nonparametric tests which make minimal

assumptions about the underlying fequntive distribution of the data.
- Sign binomial test is used for two way categorical observations, in this test
dependent variable has only two categories and identify of differences
between pairs of sample.
74
3.20 Limitation of the study
The present study had some limitations. The data collected for this study covered only
Pune city people and the sample size was 508 people had used in e-banking services
consumers. Large data collection to some extend was beyond the capacity of an
individual researcher financially and also because the researcher happened to be a
foreigner. Additionally, collecting the data from all municipal wards of Pune was not
possible because some wards are semi-rural areas where people did not use e-banking
services and most of them were not well educated.
The missing values in the questionnaire and non-responding respondents were an

unavoidable part of every field survey. During current research also the researcher
faced the same problem in some areas.
3.21 Interpretation and presentation of finding and recommendation for future

studies
The last chapter of the thesis present major finding, conclusion and contribution for
future of studies of consumer behaviour of electronic banking and their services.
Research report is highly important task during any research. Findings of research are
reported in reasonable explanations of relationship between variable through
statistical analyses. Last chapter contain not only statistical report of collected data,
but also reports the other significant information which reached through research
process. In finding part all relevant factors and variables which affect the problems of
research are also reported. Logical analysis done for consumer behaviour in electronic
banking in Pune proposed based on development of subject and preparing of last
outline. This chapter contain introduction, statement of finding, based on objectives of
the study, which means for each proper objective findings reported, the main reason is
for clarity and better understanding. The last task is to present of results of test and for
research in whole. In conclusion part, the thesis give the overall snapshot for the
thesis and finding presents a top level view about consumer behavior about electronic
banking in Pune city.
75
Recommendation part is allocated to identify opportunity and unsolved problems for
future studies regarding consumer behavior of electronic banking. In fact, this part
gives and contribute research gap for future studies. The last chapter contains
introduction of subject of the study, research methodology applied for the research
and presents in brief which others can understand that the research is done based on
which methodology. Finding, conclusion and recommendation is presented based on
objectives of the study all of them tried to present in simple language for better
underrating of others.
76
CHAPTER 4
DATA ANALYSIS
Title Page NO.
4.1 Introduction…………………………………………………………… 79
4.2 Objectives……………………………………………………………. 79
4.3 Hypothesis……………………………………………………….. 80
4.4 Frequency Distribution……………………………………………….. 80
4.5 Demographic classification…………………………………………... 83
4.6 Statistical Data Analysis……………………………………………… 86
4.7Variables ……………………………………………………………… 128
4.8Hypothesis testing …………………………………………………….. 195
78
Data analysis
4.1 Introduction
In this research two types of research problems presented, first type of problems is
relate to states of nature and second relate to relationship between variables. The main
area of research problems in this research is related to customer behavior of banking
system in Pune city which categorized in main three questions:
- Why consumers behave in this particular way?
This question is related to nature of customer behaviour regarding e-banking

services in Pune city. This question is made to understand current situation of
customer behave about electronic facilities of banking in Pune city
- What is the motivation for this particular behavior?
This question is relating to relation between variables which effect motivation for
current customers of electronic banking facilities in Pune city.
- What is the outcome of this particular behavior?
This question is related to nature customer behave about current behave of

customer about current electronic banking facilities in Pune city.
4.2 Objectives
2. To understand the role of e-banking as compared to traditional banking, in terms of

cost, efficiency, time, secrecy, quality of services from consumer perspective in Pune
city.
3. To identify the e-banking benefits and problems from consumers point of view.
4. To identify various e-banking products offered by Indian banks towards consumers

in Pune city.
5. To examine the impact of e-banking products on the behavior of consumers.
79
4.3 Hypothesis
security in transactions have a positive impact on the consumer behavior towards
electronic banking.
4.4 Frequency distribution
Respondents were asked to comment on demographic information like Gender, Age,

Nationality, Education, Occupation and Income.
Gender was measured using 3 response options (1=Male, 2=Female, 3=other).
Age was measured using 4 response options (1=below 18, 2=18-30, 3=30-40,
4=above 40).
Nationality was measured using 2 response options (1=Indian, 2=other).
Education was measured using 4 response options (1=12 th standard and below, 2=
Bachelors/Diploma, 3=Master degree/Doctorate, 4=other).
Occupation was measured using 4 response options (1=Students, 2=Self-employed,

3=service, 4=other).
Income was measured using 6 response options (1=Less than Rs 10000, 2= Rs 10000-
less than Rs 20000, 3=Rs 20000-less than Rs 30000, 4=Rs 30000-less than Rs 40000,
5=Rs 40000-less than Rs 50000, 6= Above Rs 50000).
80
Table 4.1 Basic data
Variable Response category Frequency Percentage
Gender Male 365 71.9
Female 142 28.8
Other 1 2
Total 508 100
Age Below 18 11 2.2
18-30 265 50.9
30-40 130 25.8
Above 40 106 21.1
Total 508 100
Missing 5 1.0
Nationality Indian 442 88.8
Other 56 21.2
Total 508 100
Missing 10 2.0
Education 12th standard and below 73 14.7
Bachelors/Diploma 258 52.0
Master degree/Doctorate 165 31.5
81
Other 9 10.8
Total 508 100
Missing 12
Occupation Students 126 25.2
Self employed 221 44.2
Service 137 27.4
Other 16 3.2
Missing 8 1.6
Total 508 100
Income Less than Rs 10000 79 16.7
Rs 10000-less than Rs 90 19.0

20000
66 13.9
Rs 20000-less than Rs
113 23.8
30000
24 5.1
Rs 30000-less than Rs
40000 102 21.5
Rs 40000-less than Rs 34 6.7

50000
508 100
Above Rs 50000
Missing
Total
82
4.5 Demographic classification
Gender
From the above frequency distribution table it is seen that out of the 508 respondents
71.9% were male, 28.8% were female and 2% belong to other gender category. Most
of the respondents in the study are male.
Chart 4.1: Gender
Age
Out of the 508 respondents 2.2% were below 18 years of age, 50.9% were between 18
and 30 years of age, 25.38% were between 30 and 40 years of age and 21.1% were
above 40 years of age. Hence most of the respondents under study are between 18 and
30 years.
Chart 4.2: Age
83
Nationality
88.8% were Indian, 21.2% were non Indian. Hence most of the respondents in the
study are Indian.
Chart 4.3: Nationality distribution
Education
Out of the 508 respondents 14.7% were below 12th standard and below, 52.0% were
Bachelors/Diploma, 31.5% were Master degree/Doctorate and 10.8% were belong to
other education category. Hence most of the respondents are Bachelors/Diploma.
Chart 4.4: Education wise distribution of the sample
84
Occupation
25.2% were students, 44.2% were self-employed and 27.4% were service and 3.2%
were belong to other occupation category. Hence most of the respondents in the study
are self-employed.
Chart 4.5: Occupation variety of sample population
Income
Income was measured using 6 response options (1=Less than Rs 10000, 2= Rs 10000-
less than Rs 20000, 3=Rs 20000-less than Rs 30000, 4=Rs 30000-less than Rs 40000,
5=Rs 40000-less than Rs 50000, 6= Above Rs 50000).
Chart 4.6: Income
85
4.6 Statistical data analysis
What do you know about electronic banking?
Respondents were asked to comment on the knowledge of electronic banking using 3

response options (1=Significance, 2=little bit, 3=Not at all).
Table 4.2: Knowledge about electronic banking
Frequency Percent Valid

percent
Significant 258 50.8 51.1
44.4
Little bit 224 44.1
4.6
Not at all 23 4.5
Missing 3 0.6 100
Total 508 100
86
figure 4.1: Knowledge about electronic banking
Interpretation
From the above frequency distribution table Barchart it can be seen that out of the
508 respondents, 51.09 % said they have significant knowledge about electronic
banking, 44.3% said they have little bit knowledge about electronic banking, 4.5%
said they have no knowledge about electronic banking. Half of the respondents lack
sufficient knowledge about electronic banking.
The reasons for not opening an electronic bank account.
Respondents were asked to tell about the reasons for not opening an electronic bank
account. They were provided with 13 response options (1=under age, 2=Never heard
of electronic banking, 3=Concerned about security, 4=Have not taken time to open an
account, 5=Do not see any real value in having this type of account, 6=Too new. I
would like to see how it works, then I may open an account, 7=Not available in my
bank, 8=Do not have Internet at home, 9=Do not trust electronic services when it
comes to managing my money, 10=Electronic services do not enable me to do what I
want to do, 11=I prefer to have personal human relation, 12=Find the process too
difficult. 13=other), they were further ask to choose the options as applicable; Hence
the question was a multiple choice question data were analysed using multiple
response analysis option in IBM SPSS 21.
87
Table 4.3: Reasons for not opening an electronic bank account frequencies
Responses Percent of Cases
N Percent
Under age 9 5.9% 8.6%
Never heard of electronic banking 15 9.8% 14.3%
Concerned about security 36 23.5% 34.3%
Have not taken time to open an account 16 10.5% 15.2%
Do not see any real value in having this type of

11 7.2% 10.5%
account
Too new. I would like to see how it works, then

12 7.8% 11.4%
i may open an account
Not available in my bank 5 3.3% 4.8%
Do not have internet at home 6 3.9% 5.7%
Do not trust electronic services when it comes

9 5.9% 8.6%
to managing my money
Electronic services do not enable me to do

6 3.9% 5.7%
what I want to do
I prefer to have personal human relation 14 9.2% 13.3%
Find the process too difficult 7 4.6% 6.7%
Other 7 4.6% 6.7%
Total 153 100.0% 145.7%
88
Interpretation
The above frequency distribution table reveals that out of the 153 „YES‟ responses,
5.9%accounted for „under age‟, 9.8% accounted for „never heard about electronic
banking‟, 23.5% accounted for concerned about „security‟, 10.5% accounted for have
„not taken time to open an account‟, 7.2% accounted for „do not see any real value in
having this type of account‟, 7.8% accounted for „too new, I would like to see how it
works, and then I may open an account‟, 3.3% accounted for „not available in my
bank‟, 3.9% accounted for „do not have Internet at home‟, 5.9% accounted for „do not
trust electronic services when it comes to managing my money‟, 3.9% accounted for
„electronic services do not enable me to do what I want to do‟, 9.2% accounted for „I
prefer to have personal human relation‟, 4.6% accounted for „find the process too
difficult‟.
Hence it can be concluded that the top 4 reasons for not opening an electronic bank
account are: 1) Concern about security, 2) have not taken time to open account, 3)
never heard about electronic banking, 4) I prefer to have personal human relation.
89
Variable
Automated Teller Machine (ATM) service is presumed to be the most user friendly
service in electronic banking by customers.
Statistical test: Friedman test.
Variables and measurements: respondents were offered the following e-banking

services:
A: Telephone banking,
B: ATM service,
C: Net banking
They were further asked to rank each-services on the basis user friendliness (1= being
very user friendly and N being not user friendly).
H0: E-banking services do not differ in magnitude of user friendliness (mean ranks
are equal).
H1: E-banking services do differ in magnitude of user friendliness (mean ranks are
more equal).
Level of significance: α=0.05
Table 4.4: Friedman test statistics for usage of ATM services
Test Statistics
N 354
Chi-
215.230
Square
df 2
Asymp.
.000
Sig.
90
Observation
Since the P value (0.000) is less than level of significance (0.05) the H0 is rejected.
Hence it is conclude that e-banking services significantly differ of in magnitude of
user friendliness. To find out where the difference lines we refer to rank table.
Table 4.5: Rank table for e-banking services
Ranks
Mean
Rank
Telephone
2.29
banking
ATM services 1.36
Net banking 2.35
From the ranks table it can be seen that ATM service has a mean rank of (1.36),
Telephone banking has a mean rank of (2.29) and Net banking has a mean rank of
(2.35). Hence it can be included that the most user friendly e-banking service is ATM
service.
91
Do you use any electronic banking services?
Respondents were asked to comment on whether they are using e-banking services
using 2 response options (1=Yes, 2=No).
Table 4.6: Usage of electronic banking services
Response category Frequency Percent
Yes 439 86.4
No 63 12.4
Missing 6 1.2
Total 508 100
Chart 4.7: E-banking service
92
Interpretation
From the above frequency distribution table it can be seen that out of the total 508
respondents, 86.4% are using electronic banking services and12.4 % said they don‟t
use electronic banking services.
How long have you been using electronic banking services?
Respondents were asked to comment on how long they have been using the e-
banking services using 4 response options (1= less than 1 month, 2= 2-3 times a week,
3=4-5 times a week, 4= infrequently).
Table 4.7: Duration of usage of electronic banking services
Response category frequency percent Valid

percent
Less than 1 month 45 8.9 9.8
20.4
1 month- less than 1 month 94 18.5
23.9
1 year- less than 2 years 110 21.7

46.0
2 years and more 212 41.7
100
Missing 47 9.3
Total 508 100
93
Figure 4.2: Duration of usage of electronic banking services
Interpretation
From the above frequency distribution table Bar chart it can be seen that the out of
508 respondents 46% said they have been using electronic banking services for 2
years and more 23.8% said they have been using e-banking services for 1 year and
less than 2 years, 20.3 % for 1 month and less that 1 month and 9.8 % said less than 1
month.
94
How many banks do you deal with?
Table 4.8: The number of banks which consumers deal with

percent
One 224 44.1 53.5
32.9
Two 138 27.2
9.3
Three 39 7.7
2.9
Four 12 2.4 1.2
2
Five 5 1.0
Eight 1 0.2 100
Missing 89 17.5
Total 508 100
95
Figure 4.3: The number of banks which consumers deal with
Interpretation
508 respondents 53.4% said they deal only with one bank and 32.9 % said they deal
with 2 banks, 9.3 % with 3 banks , 2.8% said they deal with 4 banks, 1.2% with 5
banks and 0.2% only said they deal with 8 banks.
96
How often do you use the e-banking services?
Table 4.9: Frequency of use of e-banking services

percent
Once a week 95 18.7 20.4
38.9
2-3 times a week 181 35.6
15.3

25.4
Frequently 118 23.2
100
Missing 43 8.5
Total 508 100
97
Figure 4.4: Frequency of use of e-banking services
Interpretation
508 respondents 38.9% said they use e-banking services 2-3 times a week,25.3% said
they are using e-banking services frequently, 20.4% said they use electronic banking
services once a week, 15.2% said that they use e-banking services 4-5 times a week.
98
Where do you usually access the Internet from?
Table 4.l0: The place of access the Internet
Response category Frequency Percent Valid

percent
Home 289 59.6 60.7
Work place 122 24.0 25.6
College 12 2.4 2.5
Cyber cafe 53 10.4 11.1
Missing
Total 508 100 100
99
Figure 4.5: The place of access the Internet
Interpretation
508 respondents 60.7% said they usually access the Internet from their home, 25.6%
said they usually access the Internet from their work place, 11.1% said cyber cafe and
2.5% said the college,
100
Which electronic features do you use regularly?
Respondents were asked to tell about the electronic features which they use regularly.
They were provided with 7 response options (1= Pay bills, 2=Make an account
inquiry, 3=Wire transfer, 4=Transfer funds between accounts, 5=Process payroll,
6=Order check books, 7=other).They were further ask to choose the options as
applicable; Hence the question was a multiple choice question data were analysed
using multiple response analysis option in IBM SPSS 21.
Table 4.11: The electronic features which consumer use regularly
Response category Respondents Percent

of cases
N Percent
Pay bills 247 31.9 52.8
Make an account inquiry 147 19.0 31.4
Wire transfer 60 7.8 12.8
Transfer funds between accounts 201 26.0 42.9
Process payroll 31 4.0 6.6
Order check books 41 5.3 8.8
Other 47 6.1 10.0
Total
774 100
Interpretation
Out of the 774 „YES‟ responses, 31.9% accounted for „pay bills‟, 19.0% accounted
for „make an account enquiry‟, 7.8% accounted for „wire transfer‟, 26.0% accounted
for „transfer funds between accounts‟, 4.0% accounted for „process payroll‟, 5.3%
accounted for „order check books‟, and 6.1% accounted for other.
101
Have you had difficulty logging on to the bank’s website?
Table 4.12: Difficulty on logging to the bank’s website
All the time 13 2.6
Sometimes 353 69.5
Not at all 99 19.5
Missing 43 8.5
Total 508 100
Chart 4.8: Difficulty on logging to the bank’s website
102
Interpretation
respondents, 2.6% said they have had difficulty logging on to the bank‟s website all
the time, 69.5% said they have had difficulty logging on to the bank‟s website
sometimes and 19.5% had difficulty logging on to the bank‟s website not at all. More
than half of the respondents had difficulty logging on to the bank‟s website all the
time.
103
Do you have a traditional bank account?
Table 4.13: Usage of traditional bank account
Yes 283 55.7
No 183 36.0
Missing 42 8.3
Total 508 100
Chart 4.9: Usage of traditional bank account
Interpretation
respondents, 55.7% said they have a traditional bank account, 36.0% they have said
they don‟t have a traditional bank account.
104
Do you still visit the bank branches since you have started using e-banking
services?
Table 4.14: Visiting the bank branches after using e-banking services
Yes 335 65.9
No 128 25.2
Missing 45 8.9
Total 508 100
Chart 4.10: Visiting the bank branches after using e-banking services
Interpretation
respondents, 65.9% said they still visit the bank branches since they started using e-
banking services and 25.2% said they still visit the bank branches since they started
using e-banking services. Most of respondents still visit their bank branches since
they have started using e-banking services.
105
What are the reasons that you typically visit your bank branch?
Respondents were asked to tell about the reasons that they typically visit their bank
branch. They were provided with 10 response options (1=To deposit cash, 2=To
withdraw cash, 3=To get advice for investment options, 4=To operate a locker,5=To
take out a demand draft, 6=To make fixed deposit/recurring deposit, 7=To pay taxes,
8=To operate Public provident fund account (PPF), 9=To raise a loan, 10=Other).
They were further they were further ask to choose the options as applicable; Hence
the question was a multiple choice question data were analysed using multiple
response analysis option in IBM SPSS 21
Table 4.15: The reasons that consumers typically visit their bank branches
Response category Respondents Percent of cases
N Percent
To deposit cash 222 29.2 50.9
To withdraw cash 128 16.8 29.4
To get advice for investment options 56 7.4 12.8
To operate a locker 43 5.7 9.9
To take out a demand draft 59 7.8 13.5
To make fixed deposit/recurring deposit 27 3.5 6.2
To pay taxes 28 3.7 6.4
To operate Public provident fund account 19 2.5 4.4

(PPF)
To raise a loan
118 15.5 27.1
Other
61 8.0 14.0
Total
761 100
106
Interpretation
Out of the 761‟YES‟ responses, 29.2% accounted for „to deposit cash‟, 16.8%
accounted for „to withdraw cash‟, 7.4% accounted for „to get advice for investment
options‟, 5.7% accounted for „to operate a locker‟, 7.8% accounted for „to take out a
demand draft‟, 3.5% accounted for „to make fixed deposit/recurring deposit‟, 3.7%
accounted for „to pay taxes‟, 2.5% accounted for „to operate public provident fund
account (PPF)‟, 15.5% accounted „to raise a loan‟, 8.0% accounted for other.
107
How frequently do you visit your bank branch?
4.16: Frequency of do visiting bank branches by consumers
Response category Frequency Percent Valid

percent
Once a week 79 15.6 17.0
27.3
13.1

42.6
Frequently 198 39.0
100
Missing 43 8.5
Total 508 100
Figure 4.6: Frequency of do visiting bank branches by consumers
108
Interpretation
508respondents 42.5% said they visit their bank branches frequently, 27.3% said they
visit their bank branches 2-3 times a week, 16.9% said they visit their bank branches
once a week and 13.1% Said 4-5 times a week.
109
What are the disadvantages of visiting a bank branch?
Respondents were asked to tell about the disadvantages of e-banking. They were
provided with 6 response options (1= Waiting, 2=Distance, 3=Working days and
working hours, 4= Quality of services, 5=other, 6=No disadvantage).They were
further ask to choose the options as applicable; Hence the question was a multiple
choice question data were analysed using multiple response analysis option in IBM
SPSS 21.
4.17: The disadvantages of visiting a bank branch

of cases
N Percent
Waiting 321 49.8 28.6
Distance 110 17.0 23.5
Working days and working hours 117 18.1 25.0
Quality of services 59 9.1 12.6
Other 10 1.6 2.1
No disadvantage 28 4.3 6.0
Total 645 100
110
Interpretation
49.8% accounted for „waiting‟, 17.0% accounted for „distance‟, 18.1% accounted for
„working days and working hours‟, 9.1% accounted for „quality of services‟, 1.6%
accounted for other , 4.3% accounted for not disadvantage.
111
What are your reasons for choosing e-banking services?
Respondents were asked to tell about the reasons for choosing e-banking services.
They were provided with 7 response options (1= Convenience, 2, Time saving,
3=Safety, 4=24 hours access to account, 5=Reliability, 6=User friendly,
7=other).They were further ask to choose the options as applicable; Hence the
question was a multiple choice question data were analysed using multiple response
analysis option in IBM SPSS 21.
Table 4.18: the reasons for choosing e-banking services

of cases
N Percent
Convenience 193 22.1 41.5
Time saving 275 31.5 59.1
Safety 65 7.4 14.0
24 hours access to account 237 27.1 51.0
Reliability 35 4.0 7.5

User friendly
55 6.3 11.8
Other
13 1.5 2.8
Total
873 100
112
Interpretation
22.1% accounted for convenience, 31.5% accounted for time saving, 7.4% accounted
for concerned about safety, 27.1% accounted for 24 hours access to account , 4.0%
accounted for reliability , 6.3% accounted for user friendly , 1.5% accounted for other.
113
In using of e-banking services have you faced data quality issues?
Respondents were asked to tell about the data quality issues in e-banking. They were
provided with 8 response options (1=Accuracy, 2=completeness, 3=Update status,
4=Reliability, 5=Relevance, 6= Easy access, 7= Consistency across data sources,
8=Appropriate presentation).They were further ask to choose the options as
Table 4.19: Data quality issues face by consumers while using e-banking services

of cases
N Percent
Accuracy 143 28.5 34.6
completeness 32 6.4 7.7
Update status 48 9.6 11.6
Reliability 41 8.2 9.9
Relevance 17 3.4 4.1
Easy access 174 34.7 42.1
Consistency across data sources 23 4.6 5.6
Appropriate presentation 23 4.6 5.6
Missing
Total 501 100
114
Interpretation
28.5% accounted for accuracy, 6.4% accounted for completeness, 9.6% accounted for
concerned about update status, 8.2% accounted for reliability , 3.4% accounted for
relevance, 34.7% accounted for easy access, 4.6% accounted for consistency across
data sources, 4.6% accounted for appropriate presentation.
115
Overall, how satisfied are you with e-banking services?
Table 4.20: Consumer satisfaction with e-banking services
Response category Frequency Percent Valid percent
Very satisfied 79 15.6 18.5
Satisfied 339 66.7 79.2
Not satisfied 10 2.0 2.3
Missing 80 15.7
Total 508 100 100
Figure 4.7 Consumer satisfaction with e-banking services
Interpretation
508 respondents 79.2% said they are satisfied with electronic banking services, 18.4%
said they are very satisfied with electronic banking services, and 2.3% said they are
not satisfied with electronic banking services. It shows that more than half of
respondents are satisfied with e-banking services.
116
If you are using the following services, please ✓how frequently do you use them?
Table 4.21: Frequency of using telephone banking services

percent
Once a week 127 25.0 39.6
Telephone 12.5
banking
8.7

39.3
Frequently 126 24.8
100
Missing 87 36.8
Total 508 100
117
Figure 4.8: Telephone banking
Interpretation
508 respondents 39.5% said they are using telephone banking once a week, 39.2%
said they are using telephone banking frequently, 12.4% said they are telephone
banking 2-3 times a week and 8.7% said they are using it 4-5 times a week.
118
Automated teller machine (ATM)
Table 4.22: Frequency of using (ATM)
Response frequency percent Valid

category percent
Once a week 129 25.4 28.5
Automated Teller 26.5

Machine (ATM)
34.4

10.6
Frequently 48 9.4
100
Missing 55 10.8
Total 508 100
119
Figure 4.9: ATM
Interpretation
From the above frequency distribution table Bar chart it can be seen that out of 508
respondents 34.4% said they are using ATM 4-5 times a week,28.4% said they are
using automated teller machine (ATM) once a week, 26.46% said they are using
ATM 2-3 times a week and 10.6% said they are using ATM frequently.
120
Do you think human contact is important for banking relation?
Table 4.23: Importance of human contact for banking relation

percent
Completely 90 17.7 19.6
65.8
Somewhat 302 59.4
9.8
Unsure 45 8.9
4.8
Not at all 22 4.3
100
Missing 49 94
Total 508 100
121
Figure 4.10: Importance of human contact for banking relation
Interpretation
From the above frequency distribution table Barchart it can be seen that the out of 508
respondents 65.8% said they think human contact is important for banking relation
somewhat,19.6% said they think human contact is important for banking relation
completely, and 9.8% said they are unsure it is important and4.7% said they think it is
not important at all.
122
What are the disadvantages of e-banking?
Respondents were asked to tell about the disadvantages of e-banking. They were
provided with 8 response options (1= Overall difficulty of using e-banking system, 2=
Lack of assistance, 3= Security concerns, 4= Limited service (doesn‟t enable all
banking operations), 5=Impersonality of the service, 6=Dependence on Internet
service, 7= Unreliable, 8= other).They were further ask to choose the options as
Table 4.24: The disadvantages of e-banking services
Response category Respondents Percent of

N Percent cases
Overall difficulty of using e-banking 24 3.9 5.0

system
Lack of assistance 64 10.5 13.4
Security concerns
Limited service (doesn‟t enable all 160 26.2 33.6
banking operations)
Impersonality of the service 50 8.2 10.5
Dependence on Internet service
Unreliable 27 4.4 5.7
Other
Total 226 37.5 47.5
25 4.1 5.3
34 5.6 7.1
610 100
Interpretation
3.9% accounted for „overall difficulty of using e-banking system‟, 10.5% accounted
for „lack of assistance‟, 26.2% accounted for „concerned about security‟, 8.2%
accounted for „limited service‟, 4.4% accounted for „impersonality of the service‟,
37.5% accounted for „dependence on Internet service‟, 4.1% accounted for
„unreliable‟, 5.6% accounted for other.
123
What would encourage you to use more e-banking services?
Respondents were asked to tell about the reason which encourages them to use e-
banking services. They were provided with 5 response options (1= Rewards
(discounted fees), 2=Simple procedure /Ease in the use, 3=Higher security, 4=Lower
transaction cost, 5=other).They were further ask to choose the options as applicable;
Hence the question was a multiple choice question data were analysed using multiple
response analysis option in IBM SPSS 21.
Table 4.25: The reasons of encouraging consumers to use e-banking services

cases
N Percent
Rewards (discounted fees) 146 24.4 31.7
Simple procedure /Ease in the use 147 24.5 31.9
Higher security 114 190.0 24.7
Lower transaction cost 176 29.4 38.2
Other 16 2.7 3.5
Total 599 100 129.9
Interpretation
The above frequency distribution table reveals that out of the 599„YES‟ responses,
24.4% accounted for „rewards (discounted fees)‟, 24.5% accounted for „simple
procedure/ Ease in the use‟, 190.0% accounted for concerned about „higher security‟,
and 29.4% accounted for „lower transaction cost‟.
124
Variable
Lower transaction cost will encourage the non-user of electronic banking services to
opt for electronic banking for meeting the banking needs.
Statistical Test: Cochran Q Test
Variables and measurements: respondents were offered the following 5 reasons that
may encourage them to use electronic banking services.
A) Rewards (discounted fees)

B) Simple procedure /Ease in the use
C) Higher security
D) Lower transaction cost
E) Other
Further they were asking to choose the appropriate reason. Hence the question was a
multiple choice question.
H0= Reasons that will encourage usage of electronic banking do not differ in
frequencies.
H1=Reasons that will encourage usage of electronic banking significantly differ in

frequencies.
Level of significance α= (0.05)
125
Table 4.26: Frequencies the reasons of encouraging consumers to use e-banking
services
Frequencies
Value
0 1
Rewards(discounted
362 146
fees)
Simple procedure/ease
361 147
in the use
Higher security 394 114
Lower transaction cost 332 176
Other(please specify) 492 16
Table 4.27: Test statistics for the reasons of encouraging consumers to use e-
banking services
Test Statistics
N 508
Cochran's
150.027a
Q
df 4
Asymp. Sig. .000
Q (4) = (150.02), P= (0.000), N= (508)
Conclusion
Since the P value (0.000) is less than level of significance (0.05) the H0 is rejected.
Hence it is concluded that reasons that will encourage usage of electronic banking
significantly differ in frequencies.
126
Table 4.28: To find out where the differ lies we refer to frequencies table.

cases
N Percent
Rewards (discounted fees) 146 24.4 31.7
Simple procedure /Ease in the use 147 24.5 31.9
Higher security 114 190.0 24.7
Lower transaction cost 176 29.4 38.2
Other 16 2.7 3.5
Total 599 100 129.9
Interpretation
From the frequencies table it can be seen that rewards (discounted fees) has a
frequently count of 148, Simple procedure /Ease in the use has a frequency of 147,
higher security has a frequency of 114, lower transaction has a frequency of 176 and
other has a frequency of 16.hence the hypothesis “Lower transaction cost will
encourage the non-user of electronic banking services to out for electronic banking for
meeting the banking needs” is proved.
127
4.7 Variables
Use of electronic banking is related to Gender.
Statistical test: chi square test of contingency.
Variables and measurements: gender was a categorical variable with 3 response

options (1=Male, 2= Female, 3=other).
Usage of electronic banking was also categorical variable with 2 response options
(1=Yes, 2=No).
H0= There is no relationship between use of electronic banking and gender.
H1= There is a significance relationship between use of electronic banking and

gender.
α=Level of significance α= (0.05)
Table 4.29: Chi-Square Tests Use of electronic banking is related to Gender
Chi-Square Tests
Value df Asymp. Sig.

(2-sided)
Pearson Chi-Square 8.845a 2 .012
Likelihood Ratio 5.977 2 .050
Linear-by-Linear
3.196 1 .074
Association
N of Valid Cases 502
χ2= (2) = 8.845, P= 0.012
128
Conclusion
Since P value (0.012) is less than level of significance (0.05), the H0 is rejected.
Hence it is concluded that use of electronic banking services is related to gender. To
know more about this relationship we refer to cross tabulation.
Table 4.30: Cross tabulation Use of electronic banking is related to Gender (1)
Cross tabulation
Gender
Male Female Other
Count 320 119 0
Expected Count 314.8 123.3 .9

Yes
% within Do you
use any electronic 72.9% 27.1% 0.0%
Do you use any banking service?
electronic banking
service? Count 40 22 1
Expected Count 45.2 17.7 .1

No
% within Do you
banking service?
Count 360 141 1
Expected Count 360.0 141.0 1.0

Total
% within Do you
banking service?
129
Table 4.31: Cross tabulation Cross Tabulation. Use of electronic banking is
related to Gender (2)
Cross tabulation
Total
Count 439
Expected Count 439.0

Yes
% within Do you
use any electronic 100.0%
banking service?
4.3
Count 63
Expected Count 63.0

No
% within Do you
banking service?
Count 502
Expected Count 502.0

Total
% within Do you
banking service?
Interpretation
From the cross tabulation table it can be seen that out of the 439 respondents who said
they use electronic banking services, 73% are men. Hence it can be concluded that
men use electronic banking more than women.
130
Variable
Use of electronic banking is related to age.
Variables and measurements: age was a categorical variable with 4 response options
(1=Below18, 2=18-30, 3= 30-40, 4=Above 40).
(1=Yes, 2=No).
H0= There is no relationship between use of electronic banking and age.
H1= There is a significance relationship between use of electronic banking and age.
Table 4.32: Chi-Square Tests Use of electronic banking is related to age
Chi-Square Tests

(2-sided)
Linear-by-Linear
4.329 1 .037
Association
χ2= (3) = 16.048, P= 0.001
Conclusion
Hence it is concluded that use of electronic banking services is related to age. To
131
Table 4.33: Cross tabulation Use of electronic banking is related to age (1)
Cross tabulation
Age
Below 18 to 30 30 to 40
18
Count 5 217 118

Yes
% within Do you use
any electronic 1.2% 50.0% 27.2%
electronic banking

No
% within Do you use
banking service?
Count 10 253 128

Total
% within Do you use
banking service?
132
Age Total
Above 40
Count 94 434
Expected Count 92.6 434.0

Yes
% within Do you use any
electronic banking 21.7% 100.0%
Do you use any service?
electronic banking
service? Count 12 63

No
service?
Count 106 497

Total
service?
they use electronic banking services, 50% are between the ages of 18-30. Hence it can
be concluded that this age group (18-30) use electronic banking services more than
other age group.
133
Variable
Use of electronic banking is related to nationality.
Variables and measurements: nationality was a categorical variable with 2 response

options (1=Indian, 2=other).
(1=Yes, 2=No).
H0= There is no relationship between use of electronic banking and nationality.

nationality.
Table 4.34: Chi-square tests Use of electronic banking is related to nationality
Chi-Square Tests
Value df Asymp. Sig. Exact Exact Sig.

(2-sided) Sig. (2- (1-sided)
sided)
Continuity Correctionb 34.098 1 .000
Fisher's Exact Test .000 .000
Linear-by-Linear
36.586 1 .000
Association
134
χ2= (1) = 36.660, P= 0.000
Conclusion
Hence it is concluded that use of electronic banking services is related to nationality.
To know more about this relationship we refer to cross tabulation.
Table 4.35 cross tabulation tests Use of electronic banking is related to

nationality
Cross tabulation
Nationality Total
Indian Other
Count 396 35 431

Yes
% within Do you use
electronic banking

No
% within Do you use
any electronic 65.6% 34.4% 100.0%
banking service?
Count 436 56 492

Total
% within Do you use
any electronic 88.6% 11.4% 100.0%
banking service?
they use electronic banking services, 91.2% are Indian. Hence it can be concluded that
Indian nationality use e-banking services more than other nationality.
135
Variable
Use of electronic banking is related to education.
Variables and measurements: education was a categorical variable with 4 response

options (1=12th standard and below, 2=Bachelors degree/Diploma, 3=Masters
degree/Doctorate, 4=other).
(1=Yes, 2=No).
H0= There is no relationship between use of electronic banking and education.

education.
Table 4.36: chi- square tests use of electronic banking is related to education
Chi Square Tests

(2-sided)
Linear-by-Linear
9.477 1 .002
Association
χ2= (3) = 10.506, P= 0.015
136
Conclusion
Hence it is concluded that use of electronic banking services is related to education.
Table 4.37: Cross tabulation use of electronic banking is related to education
Cross tabulation
Education
12th Bachelors
Standard degree and
and below diploma
Count 56 219

Yes
% within Do you use
any electronic 13.1% 51.3%
electronic banking
service? Count 15 37

No
% within Do you use
banking service?
Count 71 256

Total
% within Do you use
banking service?
137
4.38: Do you use any electronic banking service?
Table 4.38 Cross table of usage of electronic banking service
Education Total
Masters Other
degree /
doctorate
Count 144 8 427

Yes
% within Do you
100.0
use any electronic 33.7% 1.9%
%
electronic banking

No
% within Do you
100.0
%
banking service?
Count 154 9 490

Total
% within Do you
100.0
%
banking service?
they use electronic banking services, 51.3%% are Bachelors degree/Diploma. Hence
it can be concluded that this level of education (Bachelors degree/Diploma) use
electronic banking services more than other level of education.
138
Variable
Use of electronic banking is related to occupation.
Variables and measurements: occupation was a categorical variable with 4 response

options (1=Student, 2=Self employed, 3=Service, 4=other).
(1=Yes, 2=No).
H0= There is no relationship between use of electronic banking and occupation.

occupation.
Table 4.39: Chi square tests Use of electronic banking is related to occupation
Chi-Square Tests
Value df Asymp.
Sig. (2-
sided)
Linear-by-Linear
11.147 1 .001
Association
χ2= (3) = 25.143, P= 0.000
139
Conclusion
Hence it is concluded that use of electronic banking services is related to occupation.
Table 4.40: Cross tabulation use of electronic banking is related to occupation
Cross tabulation
Occupation
Student Self Service

employed
Count 91 204 124

Yes
% within Do you use

electronic banking

No
% within Do you use

banking service?
Count 122 220 137

Total
% within Do you use

banking service?
140
Table 4.41 Usage of electronic banking service
Cross tabulation
Occupati Total
on
Other
Count 13 432

Yes
% within Do you use

any electronic banking 3.0% 100.0%
Do you use any service?
electronic banking
service? Count 2 62

No
% within Do you use

service?
Count 15 494

Total
% within Do you use

service?
they use electronic banking services, 47.2% are self employed. Hence it can be
concluded that the respondents who are self employed use electronic banking services
more than other occupation.
141
Variable
Use of electronic banking is related to Income.
Variables and measurements: income was a categorical variable with 6 response
options (1= Less than Rs10000, 2=Rs 10000-less than Rs 20000, 3=Rs 20000-less
than Rs 30000, 4=Rs 30000-less than Rs 40000, 5=Rs 40000-less than Rs 50000, 6=
Above Rs 50000).
(1=Yes, 2=No).
H0= There is no relationship between use of electronic banking and Income.

Income.
Table 4.42: Chi- square tests use of electronic banking is related to Income
Chi-Square Tests

(2-sided)
Linear-by-Linear
28.379 1 .000
Association
χ2= (5) = 37.771, P= 0.000
142
Conclusion
Hence it is concluded that use of electronic banking services is related to Income. To
Table 4.43: Cross tabulation use of electronic banking is related to Income
Cross tabulation
Do you use any electronic Total

banking service?
Yes No
Count 61 18 79
Less than Rs 10000

% within
77.2% 22.8% 100.0%
Income
Count 74 15 89
Rs 10000 and less than
Rs 20000 % within
83.1% 16.9% 100.0%
Income
Income Count 53 13 66
Rs 30000 % within
80.3% 19.7% 100.0%
Income
Count 110 2 112

Rs 40000 % within
98.2% 1.8% 100.0%
Income
Rs 40000 and less than Count 22 2 24
143
Rs 50000
% within
91.7% 8.3% 100.0%
Income
Count 100 2 102
Above Rs 50000
% within
98.0% 2.0% 100.0%
Income
Count 420 52 472
Total
% within
89.0% 11.0% 100.0%
Income
they use electronic banking services 98% have above Rs 50000 monthly. Hence it can
be concluded that the respondents who are earning above Rs 50000 income, use
electronic banking services more than other.
144
Variable
Frequency of use of electronic banking services is related to gender.
Variables and measurements: frequency of use of e-banking services was a

categorical variable with 4 response options (1=Once a week, 2= 2-3 times a week, 3=
4-5 times a week, 4= frequently).
Variable and measurement of gender was a categorical variable with 3 response

options (1=Male, 2= Female, 3= other).
H0= There is no relationship between frequency of use of e-banking services and

gender.
H1= There is a significance relationship between frequency of use of e-banking

services and gender.
Table 4.44: Chi square tests Frequency of use of electronic banking services is
related to gender
Chi Square Tests

(2-sided)
Linear-by-Linear
1.345 1 .246
Association
145
χ2= (3) = 4.093, P= 0.252
Conclusion
Since P value (0.252) is more than level of significance (0.05), the H0 is accepted.
Hence it is concluded that frequency of use of electronic banking services is not
related to gender.
146
Variable
Frequency of use of electronic banking services is related to age.
Variables and measurements of frequency of use of e-banking services was a

Variable and measurement age was a categorical variable with 4 response options
(1=Below 18, 2= 18-30, 3= 30-40, 4= Above 40).
H0= There is no relationship between frequency of use of e-banking services and age.

services and age.
Table 4.45: chi square test Frequency of use of electronic banking services is
related to age
Chi Square Tests

(2-sided)
Linear-by-Linear
30.154 1 .000
Association
χ2= (9) = 98.529, P= 0.000
147
Conclusion
Hence it is concluded that frequency of use of electronic banking services is related to
age. To know more about this relationship we refer to cross tabulation.
Table 4.46: Cross tabulation Frequency of use of electronic banking services is

related to age (1)
Cross tabulation
Once a 2-3 times a 4-5 times a Frequent

week week week ly
Count 0 2 1 4
Below
18 % within
0.0% 28.6% 14.3% 57.1%
Age
Count 63 92 37 43
18 to 30
% within
26.8% 39.1% 15.7% 18.3%
Age
Age
Count 19 66 25 12
30 to 40
% within
15.6% 54.1% 20.5% 9.8%
Age
Count 12 18 8 58
Above
40 % within
12.5% 18.8% 8.3% 60.4%
Age
Count 94 178 71 117

Total
% within
20.4% 38.7% 15.4% 25.4%
Age
148
related to age
Cross tabulation
Total
Count 7
Below 18
% within Age 100.0%
Count 235
18 to 30
% within Age 100.0%
Age
Count 122
30 to 40
% within Age 100.0%
Count 96
Above 40
% within Age 100.0%
Count 460
Total
% within Age 100.0%
From the cross tabulation table it can be seen that the frequent users of electronic
banking services are people below 18 years of age and propel above 40 years of age.
People between 30-40 years of age use e-banking services 3-4 times a week.
149
Variable
Frequency of use of electronic banking services is related to nationality.

Variable and measurement nationality was a categorical variable with 2 response

options (1= Indian, 2=other).

nationality.

services and nationality.
Table 4.48: Chi- square tests Frequency of use of electronic banking services is
Chi-Square Tests

(2-sided)
Linear-by-Linear
4.384 1 .036
Association
χ2= (3) = 12.591, P= 0.006
150
Conclusion
Since P value (0.006) is less than level of significance (0.05), the H0 is accepted.
Hence it is concluded that frequency of use of electronic banking services is not
related to nationality. To know more about this relationship we refer to cross
tabulation.

related to nationality (1)
Cross tabulation
How often do you use the e-banking

services?
Once a 2-3 times a 4-5 times a

week week week
Count 84 168 64
India
n % within
20.2% 40.4% 15.4%
Nationality
Nationali
ty
Count 10 6 7
Other
% within
24.4% 14.6% 17.1%
Nationality
Count 94 174 71
Total
% within
20.6% 38.1% 15.5%
Nationality
151
Cross tabulation
How often do Total

you use the e-
banking
services?
Frequently
Count 100 416

Indian
% within Nationality 24.0% 100.0%
Nationality
Count 18 41
Other
Count 118 457

Total
From the cross tabulation it can be seen that the frequent users of electronic banking
services are other nationalities. Indian use e-banking services 3-4 times a week.
152
Variable
Frequency of use of electronic banking services is related to education.

Variable and measurement of education was a categorical variable with 4 response

options (1=12th standard and below, 2= Bachelors degree/Diploma, 3= Masters
degree/Doctorate, 4= other).

education.

services and education.
Table 4.51: Chi square test Frequency of use of electronic banking services is
Chi-Square Tests

(2-sided)
Linear-by-Linear
2.285 1 .131
Association
χ2= (9) = 21.304, P= 0.011
153
Conclusion
education. To know more about this relationship we refer to cross tabulation.

Cross tabulation
How often do you use the

e-banking services?
Once a 2-3 times a

week week
Count 9 24
12th Standard and
below % within
14.3% 38.1%
Education
Count 40 106
Bachelors degree and
diploma % within
17.1% 45.3%
Education
Educatio
n
Count 40 44
Masters degree /
doctorate % within
27.2% 29.9%
Education
Count 3 2
Other
% within
33.3% 22.2%
Education
Count 92 176
Total
% within
20.3% 38.9%
Education
154
Cross tabulation
How often do you Total

use the e-banking
services?
4-5 times a Frequen

week tly
Count 5 25 63
12th Standard and
below % within 100.0
7.9% 39.7%
Education %
Count 36 52 234
Bachelors degree
and diploma % within 100.0
15.4% 22.2%
Education %
Educati
on
Count 25 38 147
Masters degree /
doctorate % within 100.0
17.0% 25.9%
Education %
Count 1 3 9
Other
% within 100.0
11.1% 33.3%
Education %
Count 67 118 453

Total
% within 100.0
14.8% 26.0%
Education %
From the cross tabulation table it can be seen that people with bachelor‟s degree and
diploma of education use electronic banking services 2-3 times a week and the
frequent users of e-banking services are people with 12th Standard and below of
education.
155
Variable
Frequency of use of electronic banking services is related to occupation.

Variable and measurement occupation was a categorical variable with 4 response

options (1=Student, 2= Self employed, 3= Service, 4= other).

occupation.

services and occupation.
Chi-Square Tests

(2-sided)
Linear-by-Linear
.149 1 .700
Association
χ2= (9) = 43.844, P= 0.000
156
Conclusion
occupation. To know more about this relationship we refer to cross tabulation.

Cross tabulation
Once a week 2-3 times a 4-5 times a

week week
Count 33 26 11
Student
% within
31.7% 25.0% 10.6%
Occupation
Count 25 109 34
Self
employed % within
11.9% 51.9% 16.2%
Occupation
Occupation
Count 30 40 23
Service
% within
23.1% 30.8% 17.7%
Occupation
Count 5 3 0
Other
% within
38.5% 23.1% 0.0%
Occupation
Count 93 178 68
Total
% within
20.4% 38.9% 14.9%
Occupation
157
Cross tabulation
How often do you Total

use the e-banking
services?
Frequently
Count 34 104
Student
% within
32.7% 100.0%
Occupation
Count 42 210
Self employed
% within
20.0% 100.0%
Occupation
Occupation
Count 37 130
Service
% within
28.5% 100.0%
Occupation
Count 5 13
Other
% within
38.5% 100.0%
Occupation
Count 118 457

Total
% within
25.8% 100.0%
Occupation
From this cross tabulation it can be seen that self-employed people use e-banking
services 2-3 times a week and people with other occupation use e-banking services
once a week.
158
Variable
Frequency of use of electronic banking services is related to income.

Variable and measurement of income was a categorical variable with 6 response

options (1= Less than Rs10000, 2= Rs 10000-less than Rs 20000, 3= Rs 20000-less
than Rs 30000, 4= Rs 30000-less than Rs 40000 5= Rs 40000-less than Rs 50000,
6=Above Rs 50000).

Income.

services and Income.
related to income
Chi-Square Tests

(2-sided)
Linear-by-Linear
6.453 1 .011
Association
χ2= (15) = 104.368, P= 0.000
159
Conclusion
Income. To know more about this relationship we refer to cross tabulation.

Cross tabulation
How often do you use the

e-banking services?
Once a 2-3 times a

week week
Count 29 18
Less than Rs 10000

% within
42.0% 26.1%
Income
Count 13 33
Income
Rs 20000 % within
15.9% 40.2%
Income
Count 22 9
Rs 30000 % within
39.3% 16.1%
Income
160
Count 14 71
Rs 40000 % within
12.7% 64.5%
Income
Count 2 4
Rs 50000 % within
9.5% 19.0%
Income
Count 9 40
Above Rs 50000
% within
9.0% 40.0%
Income
Count 89 175
Total
% within
20.3% 40.0%
Income
161
related to income
Cross tabulation
How often do you use Total

the e-banking
services?
4-5 times a Frequen

week tly
Count 3 19 69
Less than Rs 10000

% within
4.3% 27.5% 100.0%
Income
Count 14 22 82
Rs10000 and less
than Rs 20000 % within
17.1% 26.8% 100.0%
Income
Incom
e
Count 5 20 56
Rs 20000 and less
8.9% 35.7% 100.0%
Income
Count 16 9 110
Rs 30000 and less
14.5% 8.2% 100.0%
Income
162
Count 4 11 21
Rs 40000 and less
19.0% 52.4% 100.0%
Income
Count 26 25 100
Above Rs 50000
% within
26.0% 25.0% 100.0%
Income
Count 68 106 438
Total
% within
15.5% 24.2% 100.0%
Income
From this cross tabulation it can be seen that people with Rs 30000-less than Rs
40000 income use e-banking services 2-3 times a week and people with Rs 40000-less
than Rs 50000 income use e-banking services frequently.
163
Variable
Using telephone banking frequency is related to gender.
Variables and measurements: frequency of using telephone banking frequency was a


options (1=male, 2= female, 3=other).
H0= There is no relationship between using telephone banking frequency and gender.
H1= There is a significance relationship between using telephone banking frequency

and gender.
Table 4.60: Chi-square tests using telephone banking frequency is related to

gender
Chi-Square Tests

(2-sided)
Linear-by-Linear
.142 1 .706
Association
χ2= (3) = 2.493, P= 0.477
164
Conclusion
Since P value (0.477) is greater than level of significance (0.05), the H0 is accepted.
Hence it is concluded that using telephone banking frequency is not related to gender.
Hypothesis
Using telephone banking frequency is related to age.
Variables and measurements: using telephone banking frequency was a categorical

variable with 4 response options (1=Once a week, 2= 2-3 times a week, 3= 4-5 times
a week, 4= frequently).
Variable and measurement of age was a categorical variable with 4 response options
(1=Below 18, 2=18-30, 3=30-40 , 4=Above 40).
H0= There is no relationship between using telephone banking frequency and age.

and age.
Table 4.61: Chi- square tests using telephone banking frequency is related to age
Chi-Square Tests

(2-sided)
Linear-by-Linear
.286 1 .593
Association
165
χ2= (9) = 19.404, P= 0.022
Conclusion
Hence it is concluded that using telephone banking frequency is related to age. To
Table 4.62 Cross tabulation using telephone banking frequency is related to age
(1)
Cross tabulation
Telephone banking
Once a 2-3 times a 4-5 times a Frequen

week week week tly
Count 1 1 0 0
Below
18 % within
50.0% 50.0% 0.0% 0.0%
Age
Count 57 23 13 63
18 to 30
% within
36.5% 14.7% 8.3% 40.4%
Age
Age
Count 35 12 10 20
30 to 40
% within
45.5% 15.6% 13.0% 26.0%
Age
Count 34 3 5 42
Above
40 % within
40.5% 3.6% 6.0% 50.0%
Age
Count 127 39 28 125

Total
% within
39.8% 12.2% 8.8% 39.2%
Age
166
Table 4.63. Cross tabulation using telephone banking frequency is related to age
Cross tabulation
Total
Count 2
Below 18
% within Age 100.0%
Count 156
18 to 30
% within Age 100.0%
Age
Count 77
30 to 40
% within Age 100.0%
Count 84
Above 40
% within Age 100.0%
Count 319
Total
% within Age 100.0%
From this cross tabulation it can be seen that the frequent users of telephone banking
are people above 40 and he less frequent users of telephone banking are people blow
18 years of age.
167
Variable
Using telephone banking frequency is related to nationality.

Variable and measurement of nationality was a categorical variable with 2 response

options (1=Indian, 2= other).
H0= There is no relationship between using telephone banking frequency and

nationality.

and nationality.
Table 4.64 Chi-square tests using telephone banking frequency is related to

nationality
Chi-Square Tests

(2-sided)
Linear-by-Linear
.792 1 .374
Association
168
χ2= (3) = 4.246, P= 0.236
Conclusion
Hence it is concluded that using telephone banking frequency is not related to
nationality.
Hypothesis
Using telephone banking frequency is related to education.


options (1= 12th standard and below, 2= Bachelors degree/Diploma, 3=Masters

education.

and education.
169
Table 4.65. Chi-square test, using telephone banking frequency is related to
education
Chi-Square Tests

(2-sided)
Linear-by-Linear
8.231 1 .004
Association
χ2= (9) = 21.447, P= 0.011
Conclusion
Hence it is concluded that using telephone banking frequency is related to education.
170
Table 4.66 Cross tabulation, using telephone banking frequency is related to
education (1)
Cross tabulation
Telephone banking
Once a 3-4 times a

week week
Count 17 7
12th Standard and
below % within
38.6% 15.9%
Education
Count 79 18
diploma % within
50.3% 11.5%
Education
Educatio
n
Count 27 12
Masters degree /
doctorate % within
25.5% 11.3%
Education
Count 3 0
Other
% within
42.9% 0.0%
Education
Count 126 37
Total
% within
40.1% 11.8%
Education
171
Table 4.67 Cross tabulation using telephone banking frequency is related to
education
Cross tabulation
Telephone banking Total
4-5 times a Frequen

week tly
Count 3 17 44
12th Standard and
below % within
6.8% 38.6% 100.0%
Education
Count 14 46 157
Bachelors degree
and diploma % within
8.9% 29.3% 100.0%
Education
Educati
on
Count 10 57 106
Masters degree /
doctorate % within
9.4% 53.8% 100.0%
Education
Count 1 3 7
Other
% within
14.3% 42.9% 100.0%
Education
Count 28 123 314
Total
% within
8.9% 39.2% 100.0%
Education
services are people with master degree and doctorate and the people with bachelors
degree and diploma use telephone banking services once a week.
172
Variable
Using telephone banking frequency is related to occupation.

Variable and measurement of occupation was a categorical variable with 4 response


occupation.

and occupation.
Table 4.68 Chi-square test, using telephone banking frequency is related to

occupation
Chi-Square Tests
(2-sided)
Linear-by-Linear
.092 1 .761
Association
χ2= (9) = 23.039, P= 0.006
Conclusion
Hence it is concluded that using telephone banking frequency is related to occupation.
173
Table 4.69 Cross tabulation, Using telephone banking frequency is related to
occupation (1)
Cross tabulation
Telephone banking

week week week
Count 16 11 5
Student
% within
23.5% 16.2% 7.4%
Occupation
Count 74 20 17
Self
employed % within
48.1% 13.0% 11.0%
Occupation
Occupati
on
Count 32 9 6
Service
% within
36.4% 10.2% 6.8%
Occupation
Count 2 0 0
Other
% within
28.6% 0.0% 0.0%
Occupation
Count 124 40 28
Total
% within
39.1% 12.6% 8.8%
Occupation
174
Table 4.70 cross tabulation Using telephone banking frequency is related to
occupation
Cross tabulation
Telephone Total
banking
Frequently
Count 36 68
Student
% within
52.9% 100.0%
Occupation
Count 43 154
Self employed
% within
27.9% 100.0%
Occupation
Occupation
Count 41 88
Service
% within
46.6% 100.0%
Occupation
Count 5 7
Other
% within
71.4% 100.0%
Occupation
Count 125 317

Total
% within
39.4% 100.0%
Occupation
services are students and self employed people use telephone banking services once a
week.
175
Variable
Using telephone banking frequency is related to Income.


than Rs 30000, 4=Rs 30000-less than Rs 40000, 5=Rs 40000-less than Rs 50000,
6=Above Rs 50000).
H0= There is no relationship between using telephone banking frequency and Income.

and Income.
Table 4.71 Chi-Square Tests using telephone banking frequency is related to income
Chi-Square Tests
(2-sided)
Linear-by-Linear
2.684 1 .101
Association
χ2= (15) = 24.059, P= 0.064
176
Conclusion
Hence it is concluded that using telephone banking frequency is not related to Income.
Hypothesis
Using Automated Teller Machine (ATM) frequency is related to gender.
Variables and measurements: using Automated Teller Machine (ATM) frequency was
a categorical variable with 4 response options (1=Once a week, 2= 2-3 times a week,
3= 4-5 times a week, 4= frequently).

options (1=male, 2= female, 3=other).
H0= There is no relationship between using Automated Teller Machine (ATM)

frequency and gender.
H1= There is a significance relationship between using Automated Teller Machine

(ATM) frequency and gender.
Table 4.72 Chi-Square Tests, using Automated Teller Machine (ATM) frequency
Chi-Square Tests

(2-sided)
Linear-by-Linear
15.140 1 .000
Association
177
χ2= (3) = 20.790, P= 0.000
Conclusion
Hence it is concluded that using Automated Teller Machine (ATM) frequency is
related to gender. To know more about this relationship we refer to cross tabulation.
Table 4.73 Cross tabulation using Automated Teller Machine (ATM) frequency
is related to gender (1)
Cross tabulation
Automated Teller Machine (ATM)

week week week tly
Count 77 81 130 36
Male
% within
23.8% 25.0% 40.1% 11.1%
Gender
Gende
r
Count 52 39 26 12
Femal
e % within
40.3% 30.2% 20.2% 9.3%
Gender
Count 129 120 156 48
Total
% within
28.5% 26.5% 34.4% 10.6%
Gender
178
Table 4.74 Cross tabulation, using Automated Teller Machine (ATM) frequency
Cross tabulation
Total
Count 324
Male
% within Gender 100.0%
Gender
Count 129
Female
Count 453
Total
From this cross tabulation it can be seen that female use automated teller machine
(ATM) once a week and male use ATM 4-5 times a week.
179
Variable
Using Automated Teller Machine (ATM) frequency is related to age.
Variable and measurement of age was a categorical variable with 4 response options
(1=Below 18, 2=18-30, 3=30-40 , 4=Above 40).

frequency and age.

(ATM) frequency and age.
Table 4.75 Chi-Square Tests using Automated Teller Machine (ATM) frequency
is related to age
Chi-Square Tests

(2-sided)
Linear-by-Linear
.072 1 .788
Association
180
χ2= (9) = 52.928, P= 0.000
Conclusion
related to age. To know more about this relationship we refer to cross tabulation.
is related to age (1)
Cross tabulation

week week week tly
Count 4 0 0 0
Below
18 % within
100.0% 0.0% 0.0% 0.0%
Age
Count 62 71 77 23
18 to 30
% within
26.6% 30.5% 33.0% 9.9%
Age
Age
Count 20 33 55 5
30 to 40
% within
17.7% 29.2% 48.7% 4.4%
Age
Count 42 15 21 20
Above
40 % within
42.9% 15.3% 21.4% 20.4%
Age
Count 128 119 153 48

Total
% within
28.6% 26.6% 34.2% 10.7%
Age
181
is related to age
Cross tabulation
Total
Count 4
Below 18
% within Age 100.0%
Count 233
18 to 30
% within Age 100.0%
Age
Count 113
30 to 40
% within Age 100.0%
Count 98
Above 40
% within Age 100.0%
Count 448
Total
% within Age 100.0%
From this cross tabulation it can be seen that people between 30-40 years of age and
use ATM 4-5 times a week and people above 40 years of age use ATM once a week.
182
Variable
Using Automated Teller Machine (ATM) frequency is related to nationality.
Variable and measurement of nationality was a categorical variable with 2 response

options (1= Indian, 2= other).

frequency and nationality.

(ATM) frequency and nationality.
Table 4.78 chi-square tests Using Automated Teller Machine (ATM) frequency is
Chi-Square Tests

(2-sided)
Linear-by-Linear
.475 1 .491
Association
χ2= (3) = 13.796, P= 0.003
183
Conclusion
related to nationality. To know more about this relationship we refer to cross
tabulation.
is related to nationality (1)
Cross tabulation

week week week
Count 104 110 146

India
n % within
26.1% 27.6% 36.7%
Nationality
National
ity
Count 19 10 8
Othe
r % within
40.4% 21.3% 17.0%
Nationality
Count 123 120 154
Total
% within
27.6% 27.0% 34.6%
Nationality
184
is related to nationality
Cross tabulation
Automated Total
Teller
Machine
(ATM)
Frequently
Count 38 398
Indian
Nationality
Count 10 47
Other
Count 48 445
Total
From the cross tabulation it can be seen that other nationality people use ATM once a
week and Indian use ATM 4-5 times a week.
185
Variable
Using Automated Teller Machine (ATM) frequency is related to education.

options (1=12th standard and below, 2= Bachelors degree/Diploma, 3=Masters

frequency and education.

(ATM) frequency and education.
Chi-Square Tests

(2-sided)
Linear-by-Linear
1.493 1 .222
Association
186
χ2= (9) = 19.025, P= 0.025
Conclusion
related to education. To know more about this relationship we refer to cross
tabulation.
is related to education (1)
Cross tabulation
Automated Teller
Machine (ATM)
Once a 2-3 times a

week week
Count 26 9
12th Standard and
below % within
45.6% 15.8%
Education
Count 62 59
diploma % within
26.7% 25.4%
Education
Educatio
n
Count 33 48
Masters degree /
doctorate % within
22.9% 33.3%
Education
Count 3 3
Other
% within
37.5% 37.5%
Education
Count 124 119

Total
% within
28.1% 27.0%
Education
187
Cross tabulation
Automated Teller Total

Machine (ATM)
4-5 times a Frequen

week tly
Count 15 7 57
12th Standard and
below % within 100.0
26.3% 12.3%
Education %
Count 90 21 232
Bachelors degree
and diploma % within 100.0
38.8% 9.1%
Education %
Educati
on
Count 44 19 144
Masters degree /
doctorate % within 100.0
30.6% 13.2%
Education %
Count 1 1 8
Other
% within 100.0
12.5% 12.5%
Education %
Count 150 48 441

Total
% within 100.0
34.0% 10.9%
Education %
From this cross tabulation it can be seen that people with 12th Standard and below of
education use ATM once a week and people with bachelors degree and diploma use
ATM services 4-5 times a week.
188
Variable
Using Automated Teller Machine (ATM) frequency is related to occupation.
Variable and measurement of occupation was a categorical variable with 4 response


frequency and occupation.

(ATM) frequency and occupation.
Chi-Square Tests

(2-sided)
Linear-by-Linear
2.268 1 .132
Association
189
χ2= (9) = 48.022, P= 0.000
Conclusion
related to occupation. To know more about this relationship we refer to cross
tabulation.
is related to occupation (1)
Cross tabulation
week week week
Count 37 31 24
Student % within
34.6% 29.0% 22.4%
Occupation
Count 36 59 91
Self
% within
employed 17.9% 29.4% 45.3%
Occupation
Occupatio Count 46 28 35
n Service % within
36.8% 22.4% 28.0%
Occupation
Count 10 1 1
Other % within
83.3% 8.3% 8.3%
Occupation
Count 129 119 151
Total
% within
29.0% 26.7% 33.9%
Occupation
190
Cross tabulation
Automated Total
Teller
Machine
(ATM)
Frequently
Count 15 107
Student
% within Occupation 14.0% 100.0%
Count 15 201
Self employed
Occupation
Count 16 125
Service
Count 0 12
Other
Count 46 445
Total
From this cross tabulation it can be seen that service people and students and other
level of education use ATM once a week and self employed people use ATM 4-5
times a week.
191
Variable
Using Automated Teller Machine (ATM) frequency is related to Income.

than Rs 30000, 4=Rs 30000-less than Rs 40000, 5=Rs 40000-less than Rs 50000,
6=Above Rs 50000).
frequency and Income.
(ATM) frequency and Income.
Chi-Square Tests

(2-sided)
Linear-by-Linear
11.426 1 .001
Association
χ2= (15) = 75.878, P= 0.000
Conclusion
related to income. To know more about this relationship we refer to cross tabulation.
192
is related to income (1)
Cross tabulation
Automated Teller
Machine (ATM)
Once a 2-3 times a

week week
Count 22 20
Less than Rs 10000
% within
33.8% 30.8%
Income
Count 29 19
Rs 20000 % within
37.2% 24.4%
Income
Count 29 9
Rs 30000 % within
48.3% 15.0%
Income
Income
Count 10 36
Rs 40000 % within
9.5% 34.3%
Income
Count 9 2
Rs 50000 % within
40.9% 9.1%
Income
Count 22 23
Above Rs 50000
% within
22.4% 23.5%
Income
Count 121 109

Total
% within
28.3% 25.5%
Income
193
Cross tabulation
Automated Teller Total

Machine (ATM)
4-5 times a Frequen

week tly
Count 17 6 65
Less than Rs 10000
% within
26.2% 9.2% 100.0%
Income
Count 24 6 78
Rs 10000 and less
30.8% 7.7% 100.0%
Income
Count 16 6 60
Rs 20000 and less
26.7% 10.0% 100.0%
Income
Incom
e
Count 54 5 105
Rs30000 and less
51.4% 4.8% 100.0%
Income
Count 2 9 22
Rs 40000 and less
9.1% 40.9% 100.0%
Income
Count 40 13 98
Above Rs 50000
% within
40.8% 13.3% 100.0%
Income
Count 153 45 428

Total
% within
35.7% 10.5% 100.0%
Income
From the cross tabulation it can be seen that people with Rs 30000-less than Rs 40000
of income use ATM services 4-5 times a week and people with Rs 20000-less than Rs
30000 income use ATM once a week.
194
4.8 Hypothesis testing
Overall, how satisfied are you with e-banking services?
Overall customers are satisfied with electronic banking services.
Statistical test: sign binomial test.
Variables and measurements: responds were ask to tell how satisfied they are with the
e-banking services offer by the 3 point scale (1=very satisfied, 2= satisfied, 3=
dissatisfied).
3 point scale was to “2” point scale using cut point option “2” in IBM SPSS 21.Hence
the new created categories are:
≤ 2: Satisfied
˃ 2: Dissatisfied
Test proportion: test proportion was taken as 0.5 since more than 50 % of favourable
responses to a particular category suggest greater approval for this category.
Hence p=0.5
H0: p ≤ 0.5 (proportion of responses indicating “customers satisfaction is less than or

equal to 50%”.
H1: p ˃ 0.5 (proportion of responses indicating “customers satisfaction is more than

50%”.
Level of significance: α=0.05
195
Table 4.90 Binomial Test of satisfied of e-banking services
Binomial Test
Catego N Observed Test

ry Prop. Prop.
Grou
<= 2 418 .98 .50
p1
Overall, how
satisfied are you with Grou
>2 10 .02
e-banking services? p2
Total 428 1.00
4.91 Binomial Test
Exact Sig. (2-

tailed)
Grou
.000
p1
Overall, how satisfied are you

Grou
with e-banking services?
p2
Total
196
Observed proportion is 0.98, test proportion is 0.5 and P=0.000
Since p value (0. 000) is less than level of significance hence the h0 is rejected. Hence
it is concluded that proportion of respondents indicating “customer satisfaction” is
more than 50%. Hence the hypothesis “ “overall customers are satisfied with
electronic banking services is proved.
Table 4.92 Cochran Test of frequencies
Frequencies
Value
0 1
Convenience 315 193
Time saving 233 275
Safety 443 65
24 hours access to
271 237
account
Reliability 473 35
User friendly 453 55
197
Table 4.93 Test Statistics
N 508
Cochran's Q 764.571a
df 6
Asymp. Sig. .000
a. 1 is treated as a
success.
Interpretation:
Since as per Cochran test ,1 is treated a success, there for time saving and 24 hrs to
account and convenience are the major reasons for choosing electronic banking
services and HNULL is rejected .
198
Table 4.94 Cochran Test of frequencies
Frequencies
Value
0 1
Accuracy 365 143
Completeness 476 32
Update status 460 48
Reliability 467 41
Relevance 491 17
Easy access 334 174
Consistency across data

485 23
sources
Appropriate
485 23
presentation
199
N 508
df 7
Asymp. Sig. .000
success.
Interpretation:
As per test result 0 is treated a success and therefore out of available choices
mentioned in the questionnaire, “accuracy” and “easy access” are the highly
frequented data quality issue faced by consumers of electronic banking.
200
Table 4.96 Cochran Test
Frequencies
Value
0 1
Overrall difficulty of
484 24
using e-banking systm
lack of assistance 444 64
Security concerns 348 160
limited service(doesn't
enable all banking 458 50
operations)
Impersonality of the
481 27
service
Dependence on Internet
282 226
service
Unreliable 483 25
Other 474 34
201
N 508
df 7
Asymp. Sig. .000
success.
Interpretation:
As test result signifies, out of all issues mentioned in the questionnaire, “security
concerns” related to e-banking are the major disadvantages that make impact on
consumer behaviour.
202
Table 4.98 Cochran Test
Frequencies
Value
0 1
Rewards(discounted fees) 362 146
Simpe procedure/ease in
361 147
the use
Higher security 394 114
Lower transaction cost 332 176
N 508
df 4
Asymp. Sig. .000
Q (4) = (150.0), P = (0.000), N= (508)

a. 1 is treated as a success.
Interpretation:
As test result signifies, out of all issues mentioned in the questionnaire, “Simple
procedure/ease in the use” and “Rewards (discounted fees)” are the highly
encouraging factors to approach e-banking within the selected sample.
203
CHAPTER 5
FINDINGS, RECOMMENDATIONS
AND CONCLUSION
Title Page
No.
5.1Introduction…………………………………………………………….. 206
5.2 Brief review of research methodology…………………………………. 208
5.3 Research gap …………………………………………………………… 208
5.4 Research question ……………………………………………………… 208
5.5 Findings of present study ……………………………………………….. 208
5.6Conclusion…………………………………………………………………. 214
5.7 Recommendation …………………………………………………………. 215
5.8 Scope for future study …………………………………………………… 217
205
Findings
5.1 Introduction
Investigation of research problem was the objective of this study focused on three
questions:
 Why consumers behaved in this way?
 What was the motivation for this behavior?
 What was the outcome of this behavior?
For investigation of customer behavior the research process was designed:
1- First Chapter of the present study was to concentrate on introduction of the

electronic banking system in the global and Indian scenario. This chapter
focused on understanding of electronic banking and its importance in new era
of banking industry. In global and Indian overview of electronic banking, this
chapter has given a theoretical frame work about traditional and electronic
banking industry with emphasis on cost and efficiency of new services, such
as electronic banking in India. The other point which is presented in this
chapter is about time factor in providing services, in both traditional and
electronic banking in global and Indian perspective as well, Quality of services
was the other dimension which investigate about banking industry, Quality of
services about electronic and traditional banking was one of the main reasons
to assess the customers behavior in baking sectors. This chapter consisted of
introduction of the research and identify the horizons and scopes of the study,
explanation of the research question and setting objectives and hypotheses
formulations.
2- Through literature review, second chapter investigated the previous studies
about banking services in both perspective viz. Traditional and modern baking
sectors. In this chapter most relevant secondary sources are presented about
baking services and products in electronic field and also regarding the main
aspects of customer behavior such as cost, time, efficiency and satisfaction of
electronic banking in terms of customer perception.
206
3- Third chapter explained the methodology by which the present research was
carried out. This chapter identified the process of this research. In this chapter
all necessarily criteria about this research is presented. The research process is
designed in seven steps. The main tools of this research, questionnaire, is
defined in this chapter, Sampling techniques are also explained. Statistical test
used for hypothesis testing, also defined carefully in this chapter and the other
critical test such as reliability and validity of the collected data are also
presented.
4- Fourth Chapter of in this present research focused on analyses and hypothesis
testing. This chapter is consisted both descriptive and inferential analyses. The
first part of the questionnaire, analyzed by descriptive statistics, to understand
the dispersion of data about profile of respondents. This part includes name,
address, gender, age, nationality, education, occupation and income of the
respondents. These analyses have included central tendency of data and
drawing of relevant graphs. Second part of this chapter has included inferential
statistics for test of hypotheses of the study. The statistical technics used in
this chapter were Cochran Q Test, Chi Square Test of Contingency, Pearson
Chi-Square, Likelihood Ratio, Linear-by-Linear Association, and Sign
Binomial Test.
5- Chapter five of this thesis consisted of reports of the present research; this
chapter is classified report of the research. Categorised reports of the research
helps to present more clarity about research process. The objectives of the
study were as follows:
2. To understand the role of e-banking in compare with traditional
banking, in terms of cost, efficiency, time, secrecy, quality of services
from consumer perspective in Pune city.
3. To identify benefits and problems of the e-bnking from consumer point
of view.
4. To identify various e-banking products offered by Indian banks
towards consumers in Pune city.
5. To examine the impact of e-banking products on the behavior of
consumers.
207
5.2 Brief review of research methodology
This research is categorized in applied research which investigates the behavior of e-

banking customers in Pune city, as one of the main metropolitan areas in India. This
study is carried out from seven main steps as research process from explanation of
research problem to report writing of the research. This research was based on
primary data which was collected by carefully designed questionnaire to observe
customer‟s perception about e-banking services in Pune city. Necessary tests are
applied to ensure about validity and reliability of the questionnaire.
5.3 Research gap
Research gap is identified after review of relevant literatures about electronic banking
in both global and national perspectives. Many studies are conducted previously about
customer and his perception about electronic banking, but there was no relevant study
about customer‟s behavior about electronic banking in Pune city. Hence based on
above definition the research gap was clearly identified and objectives of the study
were settled based on the research gap.
5.4 Research question
Review of previous studies shaped the research question of the study and after
identifying of research problems, research gap is identified. Therefore research
question is formulated based on previous literature study. The main question of the
study is regarding behavior of the customer in e-banking services in Pune city. The
second main question is about motivation of customers which lead them in these
behaviours. Finally the third main question is the effect of this behavior and
investigation of the outcome of their behavior.
5.5 Findings of present study
Descriptive analyses
Part “A” of the instrument focused on the demographic analysis of the respondents of
the study included eight questions, name, address, gender of respondents, age,
nationality, education, occupation and income of the respondents.
208
1. Gender: Descriptive analyses showed majority of respondents are male
(around 71.9%).
a. It showed that in Pune city, most customers of banking system are of
the male gender.
2. Age: Very small numbers of respondents (2.2%) were belonging to “under 18
year‟s old category”. More than half of the respondents were belonging to 18
to 30 years old category. The second popular category was 30 to 40 years age,
(25.38%) and the third category of respondents belonged to over 40 years old
category with (21.1%). Based on this analyses the first category of
respondents were between 18 to 30, second 30 to 40 and third is over 40 years
old.
3. Nationality: The results of analyses shows majority of respondents were
Indian with (88.8%) and the other number of sample of the study were non-
Indian with (21.2%).
4. Education: The results of analyses showed majority of respondents were with
bachelor degree (with 52%), second major category of despondence
master/doctorate degree holders (with 31.5%), third category was at 14.7%
which under 12 standard. The minority of this category were having other
education category (with 10.8%).
5. Occupation: Results of the analyses shows majority of respondents are self-
employed and 27.4% were employed in service sector, students were the third
category of respondents (with 25.2%) and the minority of this category were
belonging to other occupation category (with 3.2%).
Part B of the questionnaire contained the questions about the respondent‟s behavior as
a consumers and E-Banking service.
1. Majority of respondents are using services of electronic banking more than

once a week (with 38.9% of total sample population). Majority of respondents
visits bank branch which provides electronic services (with 39% of sample
population), frequently.
2. Lower transaction as the main motivation for using electronic banking services
in Pune city (with 29.4% of the sample population).
209
3. 24.5% of the total responses have stated that the simple procedure/ease in the
use is the second main factor affecting the consumer behaviour. It can be said
that consumers prefer to use simple procedure for their banking transactions
and electronic banking can provide such facility.
4. 24.4% of the responses of sample population are due to the encouragement of
consumers for rewards or discounted fees. The study shows that rewarding is
considered as the motive for the mentioned sample population.
5. 19% of the total population believes in securing of the confidentiality in
banking sector.
6. Majority of respondents in Pune city believes that electronic banking is
distinguishing in terms of cost, efficiency, time, secrecy and quality of
services. As a result this means electronic banking has significant effect in
creation of perception toward electronic banking services in Pune city.
7. The second majority of respondents said electronic banking services has little
or lower significance for cost, efficiency, time saving, secrecy of data and
quality of services provided by bankers.
8. Minority of respondents carrying 4.5%have negative perception toward
electronic banking services in Pune city,
As an overall conclusion the results show majority of respondents strongly

believes electronic banking has significant impacts on cost saving, efficiency of
banking services, time saving, secrecy and quality of services.
1. In Pune city, 87.6% of respondents are subjected to use of electronic

banking services for its significant in time, cost, secrecy, efficiency and
quality of services.
2. The overall conclusion is majority of respondents, carrying more than 71%

of respondents prefer to use only one or two banks which means electronic
banking services in Pune can satisfy customer by using only one or two
banks with integrated banking series.
3. 29.2% of customers claimed that they visit branches typically only for cash
deposit, which with implementation of electronic banking only the
210
mentioned sample size still prefer to visit branches personally and the rest
use electronic banking facilities for the deposit purposes.
4. The overall conclusion was , it is observed that electronic banking services

which provide facilities for depositing cash, withdrawing cash, advices for
investment options, operating a locker, taking out a demand draft, making
fixed deposit/recurring account, depositing/paying taxes and operating
public provident fund and raise a loan, have significant effect on time
saving, efficiency, quality of services, secrecy.
As a conclusion on above explanation electronic banking has distinguished

advantages such as time saving, no need for physical existence, no time limitation
in using electronic banking services, quality of services.
1. 49.8% of respondent‟s claim that the most disadvantages of traditional

banking is being time consuming or waiting in bank branches.
2. Majority of respondents (carrying 59.4% of the sample population)
said it is somewhat important to human interaction for banking relation
with.
Majority of the respondents (carrying 41.7% of sample population) said they are using
electronic banking services for two years or more.
The overall conclusion is the effect of electronic banking in time saving and no need
of physical appearance in the bank branches.
These findings shows the two important issues which customers faced regarding
electronic banking services in Pune city are easy access and accuracy of financial data
which produced by electronic banking in Pune city.
Overall, majority of customers with 82% of customers believe they have very satisfied
and satisfied perception about electronic banking benefits in Pune city.
211
1. Overall, majority of customers (carrying 82% of customers) believe
that they are very satisfied about electronic banking benefits in Pune
city.
2. 66.7% of respondents have satisfied perception about user friendly
facilities and services of electronic banking system.
Overall majority of them has very satisfied and satisfied perception, 82% of them, and
only 2% has not satisfied perception, it means electronic banking system in Pune city
has user friendly benefit for its consumers.
Dependence on internet services is the most important demerit of electronic banking

from customer‟s point of view carrying 37.5% of sample population.
Most of the respondents believe bill payment is the most used feature of
electronic banking services in Pune city carrying 31.9% of sample population.
The above explanation means electronic banking services still has some
disadvantage.
Around 63% of respondents have announced the most important disadvantages of e-
banking banking are: depended on internet services (37.5%) and security concerns
(26.2%).
1. 55.7% of respondents said they have traditional bank account and they
can access electronic banking products by use of the traditional bank
account.
2. 25% of respondents said they have been using telephone banking once
a week,
3. 30.7 % of respondents said they have been using ATM 4-5 times a
week.
4. The main reason for not applying for electronic bank facilities, as per
sample population point of view is the security concerns and issues,
which carries 23.5% of the total responses.
212
5. Lack of time for activation, of electronic banking features of existing
account as the second reason holds 10.5% of the total responses.
6. Not knowledgeable (ignorance) about electronic banking features and
uses, carried 9.8% of feed backs received from respondents.
7. Lack of Interaction with bank employees or preference to have a
personal human relation holds 9.2% of the responses received from the
sample population.
8. Preferring to know about the practical experience before applying
electronic banking features has gained 7.8% of the responses. It means
that certain percentage of the sample population prefers to have a
tutorial experience before opening account.
9. Not seeing any real value in using the electronic bank applications and
features carries 7.2% of responses received from the sample population
of the study.
10. 5.9% of the responses signified age limitation as the drawback of
applying E-banking Facilities.
11. 5.9% of the audiences have the negative perception towards the money
management by the bank in context of electronic Banking.
12. Difficulty in use of e-banking facilities and features, considered as the
ninth reason carrying 4.6% of the total sample population.
13. 4.6% of the sample population stated disability to access net from
home, as the main reason of not using internet banking.
14. Unavailability of the services in some banks is the last reason, that
3.3% of respondents stated as the reason of not using internet banking.
The other element which has effect on consumer behaviour is access to internet
facility and infrastructure of telecommunication. Results show majority of
respondents (59.6%), said they have access to electronic banking services by
connecting to internet from home, second majority of respondents believe that they
have access to internet banking services from work place and third category of
respondents believes they have access to internet from cyber café. Results of the study
shows home and work place deserved around 74% of sample size of respondents. So,
213
it clearly shows access to internet facility and its infrastructure has effect on
consumer‟s behaviour to use electronic banking services.
 Majority of respondents (with the total responses of 65.9%) still visit

bank branch after activating their electronic banking features, which
means, consumers still feel to visit bank branches and in other words
can say electronic banking services in Pune city is still in initiative
stage.
5.6 Conclusion
This study thus discussed about major findings with reference to the objectives of the
study. It also presented an understanding about concept of electronic banking and its
importance, in relation with the role of electronic banking as compared with
traditional banking system with emphasis on cost, efficiency, time secrecy and quality
of data.
The study identified benefits and problems of E-Banking from customer‟s point of
view, and also the quality of electronic banking and as the last part of findings, it
presents impact of electronic banking products on consumer‟s behavior.
The study gives an understanding about behavior of consumers towards electronic

banking system in Pune city. This research can create awareness about electronic
banking implementation with emphasis on consumer‟s behavior issues.
The findings of this research can be useful for electronic banking service providers,
bank managers and policy makers in banking sectors in Pune city.
The present study showed that consumers of electronic banking services still has some
concern about technical issues in implementation of electronic banking such as
security concern, easy to access to services, infrastructure at the electronic banking
implementation in Pune city needs improvement. Banks should be practice in creating
more awareness about e-banking products in the public.
214
5.7 Recommendations:
As per findings of the current research, it is understood that Electronic Banking in

India is characterised a number of limitations:
1. Security issues and concerns are the main issues dealt in the process of
generalization of electronic Banking. In spite of cyber security related
regulatory laws as well as IT act (2013) which gives special attention to
provide the criteria of securing e-banking customers, still the lack of relevant
regulations is felt and observed. Media as well as Bankers carry the main
responsibility towards changing the general perception of the customers.
2. In order to convert ATM machines to some sort of a routine cash centre for the
client, securing them is a must. Lack of official security guards and absence of
efficient equipment in the hands of current ATM security officers; have led to
negative perception towards the security provided in the boundaries where
ATM is placed.
a. Special attention has to be given, by the authority, to the process of
selecting security agencies and contractors.
3. Since the various communication tools are nowadays available to connect the
bank with the consumers, increase in general awareness toward potential
threats, of fake SMS, E-Mails or texts which may target the consumers, need
to be considered as an urgent action.
4. By generalising the result of the current study, it can be understood that
majority of population in India is still not familiar with the concept of E-
Banking. As a result, among a majority of the Indian society, E-Banking can
be termed as a new concept. Hence it is necessary to train the young and
younger generation about importance, advantages and significations of E-
Banking. Organising presentations and lectures in the schools, Institutes and
universities as well as including the related topics to the syllabus of schools as
well as colleges, can be called as an important step.
5. Infrastructural facilities are the preliminary needs of promoting electronic
banking. It should be always remembered that cost reducing as well as time
saving characteristic motivate the bankers and the governors to maximize their
target market.
215
6. Pune is nowadays a significant and exponentially growing city of India. The
city has diversified nature. Transformation of Pune, from an agricultural town
to an industrial hub, has led to geographical expansion of the city. As a result,
e-banking promotion and development has become a MUST for the future
especially in the newly added areas in Pune Municipal Corporation.
7. Rapid Growth of Media and advertising tools should be more applied for the
promotion of E-Banking. Since house to house publicity would help in
promotion of e-banking and considering the fact that TV/RADIO ads and
shows are still the main effective Media, which can help in creating image and
positions in the consumer minds, maximum utilisation of such resources
should be prioritised. If bankers wish to promote E-Banking effectively,
increase in use of such Media is unavoidable. Bankers must use innovative
ideas to popularise e-banking.
8. Establishment of a proper maintenance system and mechanism to avoid break
down of ATM machines and equipment, providing convenient services for the
consumers, signifies the importance of E-Banking tools for the Bankers and
can help in improving E-Banking image in the minds of consumers.
9. As mentioned in the “FINDINGS” of the current research, role of rewards as
an encouraging tool toward consumers is not ignorable. Use of financial
incentives and rewards, like Gift points per transaction, Tax Exemption and
etc, can drive a considerable change in the use of e-banking in India.
10. Ignorance or what can be called as lack of knowledge, is identified as the other
problem which is affecting e-banking. A public home to home campaign to
promote the advantages and applications of e-banking is a must for banking
industry. Considering the rural population of India which has not been the
object of the study, e-banking seems to be at the beginning of a long way to
attract maximum number of clients.
11. Until and unless the negative perception remains the same, E-Banking cannot
be developed and promoted. Computer Literacy should be developed in such a
way that consumer behaviour becomes a meaningful attitude and it will not
happen without hand to hand cooperation of banking sector and the individual
consumers. Development of E-banking is not a sole or one way phenomenon
but needs joint and mutual cooperation.
216
5.8 Scope for future studies
The researcher believes that future studies can be focused on:
1. E-banking as a marketing tool form the banks‟ point of view :
As per present scenario, banks are considering e-banking services as a by-

product of the final product. There is still a long way ahead to diversify from
current stage to a powerful marketing tool
2. Effect of E-Banking services on financial performance of the banks :
How E-banking services can effect on Bank‟s financial performance either in

negative of positive ways should be studied and evaluated. Considering E-
banking services as one of the monetary forces of the banks in such a ways
that leads to attracting the maximum number of consumers should be studied
and evaluated.
3. Study of development of E-Banking in the state of Maharashtra:
Maharashtra state is known as one of business capitals of India. As a specific

study and survey, development of E-banking in the state should be evaluated
and studied for the future development as well as current time.
4. How to simplify the application and use of E-Banking :
India is the world‟s second populated country. Generalization of e-banking

requires deep study over the complexities faced by consumers and finding
how to tackle such complexities and difficulties.
217
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Web-Sites:
www.bankofindia.co.in
www.rbi.org.in
www.bankofengland.co.uk
www.iranindiabusiness.com
www.economy.com
www.ssrn.com
www.CCSe Journal Online
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ANNEXURE
ANNEXURE 1(QUESTIONNARE)
A STUDY OF CONSUMER BEHAVIOR TOWARDS ELECTRONIC

BANKING SERVICES IN PUNECITY
Questionnaire for Consumers of E-banking Services
(A) Personal Information
1. Name:
2. Address:
3. Gender: a) Male b) Female c) Other
4. Age: a) Below 18 b) 18-30 c) 30-40 d) Above 40
5. Nationality: a) Indian b) Other(Please Specify)
6. Education:
a) 12th standard and below b) Bachelors degree/Diploma
c) Masters degree/Doctorate d) Other
7. Occupation:
a) Student b) Self employed c) Service d) Other (please
specify)
225
8. Income:
a) Less than Rs10000 b) Rs 10000-less than Rs 20000
c) Rs 20000-less than Rs 30000 d) Rs 30000-less than Rs 40000
e) Rs 40000-less than Rs 50000 f) Above Rs 50000
(B) Information about behavior as a consumer
1. What do you know about electronic banking?

a) Significant b) Little bit c) Not at all
2. Do you use any electronic banking service?

a) Yes b) No
If you are not using the e-banking services, please answer the following question:
What are the reasons that you have not opened an electronic bank account?
(Please✓ if applicable)
a) Under age
b) Never heard of electronic banking
c) Concerned about security
d) Have not taken time to open an account
e) Do not see any real value in having this type of account
f)Too new. I would like to see how it works, then I may open an account
g) Not available in my bank
h) Do not have Internet at home
i) Do not trust electronic services when it comes to managing my money
j) Electronic services do not enable me to do what I want to do
226
k) I prefer to have personal human relation
l) Find the process too difficult
m) Other
If you are using the e-banking services, please answer the following
questions:
3. How long have you been using the electronic banking services?
a) Less than 1 month b) 1 month-less than 1 year
c) 1 year-less than 2 years d) 2 years and more
4. How many banks do you deal with?

5. What is/are the name/names of bank/banks with which you have an
electronic banking facility?
6. How often do you use the e-banking services?

a) Once a week b) 2-3 times a week
c) 4-5 times a week d) infrequently
7. Where do you usually access the Internet from?

a) Home b)Work place c) College
d) Cyber Café e)Other
8. Which electronic features do you use regularly?

a) Pay bills
b) Make an account inquiry
c) Wire transfer
d) Transfer funds between accounts
e) Process payroll
f) Order cheque book
227
g) Other
9. Have you had difficulty logging onto the bank’s website?
a) All the time b) Sometimes c) Not at all
10. Do you also have a traditional bank account?

a) Yes b) No
11. Do you still visit the bank branches since you started using e-banking
services?
a) Yes b) No
12. What are the reasons that you typically visit your bank branch?
(please✓ if applicable)
a) To deposit cash
b) To withdraw cash
c) To get advice for investment options
d) To operate a locker
e) To take out a demand draft
f) To make fixed deposit/recurring deposit
g) To pay taxes
h) To operate Public provident fund account (PPF)
i) To raise a loan
j) Other (please specify)
13. How frequently do you visit your bank branch?

a) Once a week b) 2-3 times a week
c) 4-5 times a week d) Infrequently
14. What are the disadvantages of visiting a bank branch? (please✓ if

applicable)
a) Waiting b) Distance
228
c) Working days and working hours d) Quality of services
a) Other (please specify) f)No disadvantage
15. What are your reasons for choosing e-banking services?(please✓ if

applicable)
a) Convenience b) Time saving
c) Safety d) 24 hours access to account
e) Reliability f) User friendly
g) Other (please specify)
16. In using of e-banking services have you faced data quality issues?
(please✓ if applicable)
a) Accuracy b) completeness
c) Update status d) Reliability
e) Relevance f) Easy access
g) Consistency across data sources h) appropriate presentation
17. Overall, how satisfied are you with e-banking services?

a) Very satisfied b)Satisfied c)Not satisfied
18. If you are using the following services, please ✓ how frequently do
you use them?
229
E-banking services Once a 2-3 times a 4-5 times a Infrequently
week week week
Telephone banking
Automated Teller
Machine(ATM)
19. Please rank the e-banking services in order of being user friendly.
E-banking services Rank
Telephone banking
ATM services
Net banking
20. Do you think human contact is important for banking relation?

a) Completely b) Somewhat
c) Unsure d) Not at all
21. What are the disadvantages of e-banking? (please✓ if applicable)

a) Overall difficulty of using e-banking system
b) Lack of assistance
c) Security concerns
230
d) Limited service (doesn‟t enable all banking operations)
e) Impersonality of the service
f) Dependence on Internet service
g) Unreliable
h) Other
22. What would encourage you to use more the e-banking services?
a) Rewards (discounted fees)
b) Simple procedure /Ease in the use
c) Higher security
d) Lower transaction cost
e) Other (please specify)
231
Annexure 2(Pune city map)
232

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“A STUDY OF CONSUMER BEHAVIOR TOWARDS ELECTRONIC BANKING

SERVICES IN PUNE CITY”

BHARATI VIDYAPEETH DEEMED UNIVERSITY PUNE (INDIA)

FOR AWARD OF DEGREE OF

DOCTOR OF PHILOSOPHY IN COMMERCE

UNDER THE FACULTY OF ARTS, SOCIAL SCIENCE AND COMMERCE

UNDER THE GUIDANCE OF

CONSUMER BEHAVIOR TOWARDS ELECTRONIC BANKING SERVICES IN

Aghamohammadi in the department of commerce at Bharati Vidyapeeth Deemed

November 2016 under the guidance of Dr. Sushama Keskar.

Place: Pune (Signature of head of the institute with seal)

Date: Principal/ Director

BEHAVIOR TOWARDS ELECTRONIC BANKING SERVICES IN PUNE CITY”

Aghamohammadi in the department of Commerce at Bharati Vidyapeeth Deemed

November 2016 under my direct Supervision/guidance .

Dr. Sushama Keskar

I hereby declare that the thesis entitled “A STUDY OF CONSUMER BEHAVIOR

TOWARDS ELECTRONIC BANKING SERVICES IN PUNE CITY” submitted by

for the award of any degree or Diploma.

incorporated in this thesis is duly acknowledged. If any material is not duly

acknowledged and found incorporated in this thesis, it is entirely my responsibility. I am

Sr. No. Title Page No.

c Declarations By The Candidate III

Chapter 2 Literature Review 27

Chapter 3 Research Methodology 50

Chapter 4 Data Analysis 77

Chapter 5 Findings, Conclusions and Suggestions 204

Table Title Page

1.1 Branches and ATMs of Scheduled Commercial Banks as of 7

3.2 Pune city consists of following wards 62

4.1 Basic data 81

4.2 Knowledge about electronic banking 86

4.3 Reasons for not opening an electronic bank account frequencies 88

4.4 Friedman test statistics for usage of ATM services 90

4.5 Rank table for e-banking services 91

4.6 Usage of electronic banking services 92

4.7 Duration of usage of electronic banking services 93

4.8 The number of banks which consumer deal with 95

4.9 Frequency of use of e-banking services 97

4.10 The place of access the Internet 99

4.12 Difficulty on logging to the bank’s website 102

4.13 Usage of traditional bank account 104

4.16 Frequency of do visiting bank branches by consumers 108

4.17 The disadvantages of visiting a bank branch 110

4.18 The reasons for choosing e-banking services 112

4.20 Consumer satisfaction with e-banking services 116

4.21 Frequency of using telephone banking services 117

4.22 Frequency of using (ATM) 119

4.23 Importance of human contact for banking relation 121

4.24 The disadvantages of e-banking services 123

4.25 The reasons of encouraging consumers to use e-banking services 124

4.26 Frequencies the reasons of encouraging consumers to use e-banking 126

4.29 Chi-Square Tests Use of electronic banking is related to Gender 128

4.31 Cross tabulation Use of electronic banking is related to Gender 130

4.32 Chi-Square Tests Use of electronic banking is related to age 131

4.33 Cross tabulation Use of electronic banking is related to age 132

4.34 Chi-square tests Use of electronic banking is related to nationality 134

4.35 Cross tabulation tests Use of electronic banking is related to 135

4.37 Cross tabulation use of electronic banking is related to education 136

4.38 Cross table of usage of electronic banking service 137

4.40 Cross tabulation use of electronic banking is related to occupation 140

4.41 Cross tabulation of usage of electronic banking service 141

4.43 Cross tabulation use of electronic banking is related to Income 143