determinants of customer satisfaction for mobile ...

International Journal of Applied Services Marketing Perspectives

Volume 1, Number 1, July -September 2012

DETERMINANTS OF CUSTOMER SATISFACTION FOR MOBILE BANKING SERVICES AN EMPIRICAL EVIDENCE FROM PUBLIC AND PRIVATE SECTOR BANKS AT UDAIPUR, RAJASTHAN Ashish Adholiya1 Pankaj Dave2 Shilpa Adholiya3 ABSTRACT This paper is intended to investigate the determinants influences customer satisfaction for mobile banking services. Customer satisfaction has become a fundamental marketing construct in the last three decades. This research is centered to those respondents who are using the mobile banking services. So that 100 respondents are identified for research study. These respondents are from both private and public sector banks of Udaipur, Rajasthan. Their opinions were collected from structured questionnaire and quality of responses is measured by reliability test. Collected data was analyzed by factor analysis, chi-square and correlation analysis. In factor analysis principal component analysis with varimax rotation is used and correlation matrix is used to identify the relationship between the service quality, perceived value, brand perception, flexibility, technological innovation, strategic endorsement and functional performance of mobile banking service with customer satisfaction. This study may guide bank manager that which factors influences the customer satisfaction most. KEYWORDS Customer satisfaction, and Mobile Banking etc. INTRODUCTION Information technology has spread its wings in all of possible commercial sectors especially in banking, where various channels are providing quality services to their customers and increasing their satisfaction level. One of the most famous channels is Mobile, where banks have introduced Mobile Banking. Mobile Banking will do far more than protect domestic bliss. At the minimum, it will displace the ubiquitous bank branch from its position as the most preferred distribution channel for loans and deposit. At the very edge of the range of possibilities, the traditional business model can be blown to bits and banks will be forced to reinvent themselves as M-commerce organizations. Overall composition of all types of electronic banking services is known as e-banking or online banking. These e-techniques to do banking are revolutionizing the way business is conducted. At present one of the most famous e-channel of Indian banking services is ATM. But now users of mobile banking are also increasing rapidly. In India people belonging from all income groups are using the technology services while doing banking. The encouraging prospect of mobile usage has led foreign banks of India to provide mobile banking services to customers in the country. After the multinational banks, numerous local banks have intended to initiate this service for their customers. The review of literature reveals that most of the studies are done on the issues related on I-banking and E-banking and mobile banking is only identified as a new technological innovation. So there exist a gap between mobile technology adoption and its impact on customer satisfaction. Mobile banking is still a new area which needs to be analyzed in various parameters of customer satisfaction. OBJECTIVES OF STUDY Hypothetically, mobile banking will enhance good performance. The study broadly intends to find answers for the following objectives:   

To identify the factors of customers satisfaction in Mobile Banking. To assess the customer satisfaction for mobile banking service under the dimensions of service quality, brand perception and perceived value. To identify the immediate causes of acceptance in Mobile Banking.

REVIEW OF LITERATURE Banking industry is driven by the technological innovation, market uncertainty and competition. There has been a rapid shift from traditional banking to electronic banking. Competitive banks make significant investments in adopting new technology to align business strategies, enable innovative functional operations and provide extended customer services. Mobile device is commonly known as cell phone and users commonly use it for communication and as a wireless delivery channel. Mobile banking is also known as M-Banking or m-banking.

1Assistant

Professor, Shrinath Ji Institute of Biotechnology and Management, Rajasthan, India, [email protected] Scholar, JRN, Rajasthan Vidyapeeth University, Rajasthan, India. 3Assistant Professor, Eden Institute of IT and Management, Rajasthan, India. 2Research

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According to H. Amin, R. Baba, and M. Muhammad, m-banking is defined as “a form of banking transaction carried out via a mobile phone”. Moreover, it is defined as a “type of execution of financial services in the course of which - within an electronic procedure- the customer uses mobile communication techniques in conjunction with mobile devices”. The technologies generally used for mobile banking are Interactive Voice Response (IVR), Standalone Mobile Application Clients, Short Messaging Service (SMS) and Wireless Application Protocol (WAP). Technological innovation is intended to improve customer satisfaction, Customer satisfaction measurement allows an organization to understand the key drivers that create satisfaction or dissatisfaction; and what is really driving their satisfaction during a service experience. Customer satisfaction is the state of mind that customers have about a company when their expectations have been met or exceeded over the lifetime of the product or service (Kevin Cacioppo, 1995 and Kumbhar, 2010). It is also feeling or attitude of a customer towards a product or service after it has been used. According to Oliver (1980) satisfaction appears to mediate changes between pre-exposure and post-exposure attitudinal components. It is a major outcome of marketing activity whereby it serves as a link between the various stages of consumer buying behavior (Jamal & Nasser, 2002). When customers pay money to buy a service he has some minimum expectations from the transaction. These expectations from the purchase have to be met substantially, if not entirely for the customer to become a loyal customer of the service (Akbar and Parvez, 2009). These expectations are fulfilled of a promises- quality, fair price, availability, after sale services, complaints handling process, information, and variety etc. the customers are demanding high quality of services and low prices or charges. Berry (1990) mentioned that there are ten 'Quality Values' which influence satisfaction behavior i.e. Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-departmental Teamwork, Front line Service Behavior, Commitment to the Customer and Innovation. Rueangthanakiet Pairot, (2008) defined Customer‘s satisfaction as the company’s ability to fulfill the business, emotional, and psychological needs of its customers. However, customers have different levels of satisfaction as they have different attitudes and experiences as perceived from the company. Increase in service quality of the banks can satisfy and develop attitudinal loyalty which ultimately retains valued customers (Kumbhar, 2010). There is very strong relationship between quality of service and customer satisfaction (Parasuraman et al, 1985). Apart from service quality brand perception and perceived value also plays crucial role in customer satisfaction in service industry. Marketing literature examined positive link between customer satisfaction and the brand image and brand perception (woodruff et al., 1983; wafa, et al., 2009). An obtained value of service is also one of the most important factors affecting customer satisfaction. Value increases as quality increases and as price/ rent/ charges/ or cost of transaction decreases. Perceived value also one of the important factors which influencing customers satisfaction in service setting. Perceived value is compression between price or charges paid for the services by the customer as sacrifice of the money and utility derived by service perception. In this study we have assessed overall satisfaction also it can be say cumulative satisfaction. It is overall perception and concluded remark of the customer regarding mobile banking channel used by customers. Therefore, three major dimensions are identified i.e. services quality, brand perception and perceived value to assess the customer satisfaction. HYPOTHESIS OF STUDY Hypothesis 1 H10: Demographic factors do not influence customer satisfaction for mobile banking service. H1a: Demographic factor influence customer satisfaction for mobile banking service. Hypothesis 2 H20: Service quality, brand perception and perceived value are not good prophet of customer satisfaction for Mobile Banking. H2a: Service quality, brand perception and perceived value are good prophet of customer satisfaction for Mobile Banking. Hypothesis 3 H30: Flexibility, Technological innovation, Strategic endorsement and functional performance not leads to customer satisfaction for mobile banking service. H3a: Flexibility, Technological innovation, Strategic endorsement and functional performance leads to customer satisfaction for mobile banking service. RESEARCH METHODOLOGY This study is based on primary data sources, collected through survey of 100 respondents of both public [SBI and associate bank, BOB] and private sector [HDFC bank] banks of Udaipur, Rajasthan. All respondents are selected on convenience sampling method due to lack of proper information and time constraint. These banks are selected on the basis of their service availability for the customer and customer support. Questionnaire was developed through study of review of literature and discussion with bank employees and professionals. Numbers of responses were recorded based on five point likert scale ranging from strongly agree to strongly disagree and method of data collection was through personal mode. Collected data was analyzed through SPSS 19.0, particularly; descriptive statistics, Kruskal Wallis test, reliability test according to the requirement of the study.

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Demographics of Respondents Descriptive statistics are illustrated in Table1, which indicates demographics wise distribution of respondents. It reveals that most of the mobile banking users are male (66%) from the age group 25 to 50 (42 % and 22%). Major number of User of mobile banking service belongs to higher qualification group (Post Graduate (48%) and graduate (34%)). This service is more famous among businessman (39%), professionals (26%) and employees (21%). Table-1: Demographics of Respondents [Descriptive Statistics] Particulars Frequency Percent Valid Cumulative Particulars Frequency Percent Valid Cumulative Percent Percent Percent Percent Profession / Occupation Gender Employee 21 21 21 21 Female 34 34 34 34 Businessman 39 39 39 60 Male 66 66 66 100 Retired 2 2 2 62 Total 100 100 100 Student 12 12 12 74 Age Group Professional 26 26 26 100 Below 25 18 18 18 18 25-35 42 42 42 60 Total 100 100 100 36-50 22 22 22 82 Income Group [Per Annum]