Relationship among service quality customer satisfaction and efficiency in indian banks an empirical study

Abstract

ABSTRACT newlineIt has been hypothesized that e-banks must have better quality of e-banking services than of traditional banks. A survey of 384 customers was conducted to know their perceptions. Those customers were selected who utilize e-channels and attached with the banks from last 3 and more years. The survey addresses the young, rich, male, post-graduates and service class respondents in majority. Most of these customers are more aware of ATMs, credit cards and internet banking and the same channels are preferred by them in availing e-banking services due to cost effectiveness and convenient access. ATM is of more use for cash withdrawal while tele- banking, mobile banking and internet banking are used more for balance enquiry. Internet banking is also suitable for fund transfer and credit cards are admired for shopping. Customers are more satisfied with ATMs services followed by credit cards. In perspective of transformation, 44.27 pc respondents determine IT as the most dominating component for the same and 95.05 pc respondents also state e-system a major cause for transforming Indian banking system. Future of e-banking is also expected to be bright because it will help the banks to improve efficiency. Based on literature review, five major factors of service quality viz. tangibility, assurance, reliability, responsiveness and empathy were considered to evaluate the service quality. For better understanding, a gap index is prepared from mean perception and mean expectation of the customers and then the gap is tested through t-test at 1 pc and 5 pc level of significance. T-test is also applied taking the responses of respondents classified as per annual income, age and occupation where, young customers, those having income below Rs.1 lakh and business class differs from other classes in their perception about service quality as they have higher expectations from banks while others are more satisfied from banking services. From all factors, assurance is better in all banks but responsiveness is poorer at all thoug