Effect of demographic variables on customer perceived internet banking service quality: empirical evidence from India.

Gupta, Kamal K. ; Bansal, Ipshita

1.0 INTRODUCTION

World over, due to continuous growth of competition in the market place, understanding customer has become a key concern of marketing. As a result, there is a growing concern for managing service quality. However, because of four distinctive characteristics of services--intangibility, inseparability, heterogeneity and perishability, service quality becomes difficult to measure and evaluate. Therefore, measuring customer perceived service quality have drawn attention of practitioners and researchers alike (Hoffman and Bateson, 2002).

In order to improve profitability, businesses are advised to examine and make enhancements to their service quality on an ongoing basis (Gerrard and Cunningham, 2005). In one of the studies, Palmer and Cole (1995) reported that both practitioners and academics are interested in accurately measuring service quality in order to gain insights into its antecedents and consequences. This will be of great help for them to find ways of improving service quality to build sustainable competitive advantage and ensure customer satisfaction (Robledo, 2001).

Over the recent years, the incredible growth of Internet has significantly changed the way corporations conduct business. According to a nationwide research conducted by IAMAI (Internet and Mobile Association of India) and IMRB, there are 71 million Internet users in India (I-Cube, 2010). In order to cope with fierce competition more efficiently and effectively, Internet offers a wide variety of opportunities for organisations to discover new ways of conducting their business (RBI Report, 2009). Most online service providers have met substantial problems and challenges in managing online service quality. These difficulties are primarily attributed to service providers' lack of experience in operations of this new channel of delivery and their limited understanding of consumers' behaviour in the electronic markets (Mols, 2000). Moreover, service quality has become an important research issue because of changing customer expectation and perception in online service environments (Glaveli et al.,2006).

Therefore, understanding service quality within the delivery channel of Internet becomes the need of hour and certainly banking industry is no exception as the Internet may bring a dramatic change in the way banks offer services and maintain close relationship with their customers.

2.0 LITERATURE REVIEW

2.1 Internet Banking Service Quality

Service quality is one of the decisive success factors that affect the competitiveness of an organization. Banks can differentiate their services by offering high quality service (Siddiqi, 2011). Service quality has been one of the most attractive areas for researchers over the last decade in the retail banking sector (Choudhury, 2008). Customer perceptions and preferences of service quality have a major impact on a bank's success (Mouawad & Kleiner 1996).

RBI (2001) classifies Internet Banking services into three categories--the Basic Level Service, Simple Transactional Websites and Fully Transactional Websites. In the basic level service, a bank sets up its webpage to disseminate information about its different products and services, offered to customers and members of public in general. It also includes receiving and replying to customers' queries through e-mail. Simple Transactional Websites allow customers to submit their instructions, applications for different services, queries on their account balances, etc, but do not permit any fund-based transactions on their accounts. The third level of Internet banking services are offered by Fully Transactional Websites which allow the customers to operate on their accounts for transfer of funds, payment of different bills, subscribing to other products of the bank and to transact purchase and sale of securities, etc.

India has a surprisingly long Internet banking history--the first Internet banking service was initiated by ICICI Bank way back in 1996. However, 1996-98 was the period of early adoption of Internet banking while the Internet banking usage gained importance only since 1999. After ICICI Bank, HDFC bank, Induslnd Bank, IDBI Bank, Citibank, Global Trust Bank, Bank of Punjab, and UTI bank were the early ones to adopt the technology in 1999.

Survey of banks' websites (operating in India) conducted for this study between 21st January 2009 to 1st February 2009 reveals that, today, all the Private, Public sector and Foreign banks in India are offering transactional level Internet banking services to their customers.

Several researches in the past have investigated dimensions of service quality in Internet banking. Jayawardhena (2004) developed a battery of 21 items to assess service quality in ebanking by transforming the original SERVQUAL scale. Their study revealed five quality dimensions: access, web site interface, trust, attention and credibility. Siu and Mou (2005) examined the customers' service quality perceptions in Internet banking in Hong Kong and identified four key dimensions--credibility, efficiency, problem handling and security.

Sohail and Shaikh (2008) conducted an empirical study to analyse service quality of Internet banking services provided by banks in Saudi Arabia. Three factors that influence users' evaluation of service quality of internet banking services were uncovered: efficiency and security, fulfillment, and responsiveness. Loonam and O'Loughlin (2008) explored customer perceptions of internet banking and e-service quality from a user-based perspective within an Irish context by assessing the uses and gratifications sought by online users, and investigated their impact on effective web design and the E-SQ dimensions deemed focal to premium usage.

Khan et al. (2009) conducted a research study to evaluate the service quality of Internet banking services in India from customer's perspective. They developed a battery of 26 items which were condensed to seven quality dimensions: reliability, accessibility, user friendliness, privacy/security, efficiency, responsiveness and fulfillment.

2.2 Demographic Characteristics and Internet Banking Service Quality

The impacts of the customers' demographic characteristics such as age, gender, educational level, occupation and income on their attitude towards different banking technologies and individual acceptance of new technology have been investigated in many studies (Al-Somali et al., 2008). According to Sohail and Shanmugham (2004) age, educational qualification, accessibility to Internet, awareness of E-banking and customers' resistance to change are significantly affecting the adoption of Internet banking in Malaysia.

Gan et al. (2006) found that demographic variables (age, gender, marital status, ethnic background, educational qualification, employment, income, and area of residence) influence consumers' decision to adopt Internet banking. Other researchers have also posited that consumer's age, gender and educational profile play an important role in the adoption of Internet banking services, continual usage, and satisfaction with Internet banking services (Jain, 2006; Liago and Cheung, 2003).

Kilic (2010) conducted a study on Internet banking service quality and customer satisfaction in Turkey. Results indicate that accessibility, trust, credibility, and web interface variables affect satisfaction level of internet banking customers positively, whereas demographic variables, such as, gender, age, income level, and education level do not affect the satisfaction level of Internet banking customers.

Kumbhar (2011) studied the relationship of demographic characteristics of customers on service quality, service value and overall satisfaction in Internet banking services offered by Indian banks. He has found that, perceived service quality, perceived value from Internet banking services and overall satisfaction in Internet banking differ by age group, education level, profession and income level of the customers, whereas no difference was found based on gender.

In order to test the effect of most researched demographic variables (gender, age, occupation, education level and income) on the Internet banking service quality perception, following hypotheses are proposed:

H1: There is a significant difference in the performance perceptions of Internet banking service quality dimensions between males and females

H2: There is a significant difference in the performance perceptions of Internet banking service quality dimensions across age groups

H3: There is a significant difference in the performance perceptions of Internet banking service quality dimensions across occupations

H4: There is a significant difference in the performance perceptions of Internet banking service quality dimensions across education levels

H5: There is a significant difference in the performance perceptions of Internet banking service quality dimensions across income groups

3.0 RESEARCH OBJECTIVE

The objective of this research is to analyse the effect of demographic variables on customers' perceptions of Internet banking service quality dimensions.

4.0 METHODOLOGY

4.1 Research Method

Survey method of quantitative research was employed to collect the data. In March 2011, IMRB and IAMAI (Internet and mobile association of India) conducted a nationwide research on Internet usage in India. According to the survey results, Delhi is the second largest Internet using city in the country with 5 million active Internet users after Mumbai at 6.2 million users. In another study conducted by IAMAI (2006) on 'Online Banking', second largest Internet banking user base are reported from Delhi. Therefore, given the large Internet user base, National Capital Territory (NCT) of Delhi was chosen for the survey.

4.2 Study Population

Study population comprised residents of the NCT of Delhi using Internet banking services. Individuals who had used Internet banking services at least once during the last three months were targeted. Both males and females above 18 years of age residing in the NCT of Delhi qualified for the survey.

4.3 Sampling

Mixed sampling approach had been employed. Stratified sampling procedure was used to select a sample of 3 banks each from Private, Public sector and Foreign banks strata. Further, area sampling procedure was applied to select the sample areas and sample bank branches across the five zones (North, South, Central, East and West) of Delhi. As a result, total 135 sample bank branches spread over 15 sample areas were selected using lottery method of simple random procedure. A target of 10 usable questionnaires from each sample bank branch was set to achieve a large sample of 1350 Internet banking customers. A sample of 450 customers from each one of the three bank categories i.e. Private, Public sector and Foreign banks together constituted the overall sample of 1350 Internet banking customers.

4.4 Survey Instrument

Data was collected with the help of a structured questionnaire. Questionnaire included 22 internet banking service quality items developed from an initial pool of items drawn from three researches ((Jayawardhena, 2004; Siu and Mou, 2005; Sohail and Saikh, 2008) with the help of focus group discussions. Respondents were asked to rate each one of these 22 items on a 5-point Likert scale. Besides these 22 items, 5 fixed-alternative questions were asked to gather the respondent's demographic information. These questions were regarding customer's gender, age group, occupation, income and education level.

5.0 EMPIRICAL RESULTS

5.1 Sample Profile

Table 1 exhibits the demographic profile of the sample. Out of 1350 respondents, approximately 73% of the respondents are males and 27% are females. Majority of the respondents (43.3%) are in the age group of 26-35 years, followed by 23.3% and 20% Internet banking customers in the age groups of 18-25 years and 36-45 years respectively. This indicates that youth and middle aged users, being technology savvy, are the main drivers of growth of Internet banking services. Whereas, those falling in higher age groups still prefer conventional branch banking as the lowest number of respondents (3.3%) fall in the age group of 61+years, followed by the age group of 46-60 years with second lowest 10 % respondents.

Maximum respondents (48%) are engaged in service occupation, followed by business persons and self employed professionals at 27% and 12.7% respectively. Although the number of housewives who are using Internet banking services (4%) only stands next to Other' category (1%), given their number in the national demography, their responses present a huge opportunity to be seriously explored for the banking strategists. It is clear that education plays an important role in the adoption of technology based services like Internet banking, as majority of the customers surveyed, fall in 'Some college' (52%) and 'Post graduate and above' (37.3%) categories. On the basis of Income Group, maximum of the respondents (46%) fall in the '2-5 lacs' category, followed by '5-10 lacs' category at 29.7%.

5.2 Internet Banking Service Quality Dimensions

Results obtained from Exploratory Factor Analysis using SPSS 17.0 are reported in table 2. The suitability of dataset for is examined with the help of Kaiser-Meyer-Olkin Measure of Sampling Adequacy (KMSA) and Bartlett's test of sphericity (Hair et al., 2005). Results of Bartlett's test([chi square] = 28389.740, df = 231, p<.001) and KMSA (.853) support the suitability of sample for factor analysis. Principal components analysis using Varimax orthogonal rotation procedure is used. Factors with Eigen value less than 1 are dropped using the Kaiser criterion. Items with a factor loading of [+ or -] 0.50 or higher are retained. Five factors extracted, together, explain 81.12% of the total variance in the dataset. Reliability coefficients (Cronbach's Alpha) are well above the cutoff point (0.7) recommended by Nunnally and Bernstein (1994) for all the factors which indicates high level of internal consistency. These five factors identified are suitably labeled as: Security/Privacy, Reliability, Efficiency, Responsiveness and Site Aesthetics.

5.3 Internet Banking Performance by Demography

Table 3 provides the performance means for all the five Internet banking service quality dimensions identified in the study by demographic variables (gender, age, occupation, educational qualification and income). The female customers have rated their banks' performance higher than male customers on all the dimensions except reliability with an equal mean score of 3.74. Responsiveness dimension has received the highest performance score by both the genders. Again, age group wise responsiveness received the highest performance mean ratings (3.78, 3.83 and 3.86) by the respondents between 26 to 60 years of age. Whereas, youngsters (18-25 years) have rated their banks' performance highest on 'Security/Privacy' dimension and those above 61 years have given highest performance ratings to 'Reliability' dimension (mean = 3.92).

It can be noticed that the respondents in service occupation have given highest mean score to the 'Security/Privacy' (3.82) and lowest to 'Site Aesthetics' (3.63) dimensions, whereas, business persons have given lowest rating on both of these two dimensions (3.62). Housewives have also rated their banks lowest on 'Security/Privacy' dimension. Self Employed Professionals, Housewives and those in Other category have given the highest mean ratings on 'Site Aesthetics' dimension to their respective Internet banking service providers, on the other hand students alone have rated their banks highest on the' Responsiveness' dimension.

Education qualification wise--respondents those who have attended some college or are graduates have given equal highest rating of 3.74 to both Reliability and Responsiveness dimensions, whereas Postgraduates or above in qualification have also rated their banks highest on Responsiveness dimension but with a higher mean score of 3.86. Those with up to 12th standard of education have rated their banks highest on 'Security/Privacy' (3.89) and least on reliability (3.68). Income wise performance analysis reveals that those in lower (0.90 to 2 lacs) and middle (2-5 lacs) income groups have assigned relatively highest performance rating to their respective banks on' Security/Privacy' out of all the five dimensions. Whereas, those in higher income groups (2-5 lacs and 5-10 lacs) have given highest mean scores to Responsiveness (3.99) and Efficiency dimensions respectively (3.98).

5.4 Hypotheses Testing

Effect of demographic variables on Internet banking service quality perceptions will be analysed with the help of following hypotheses:

H1: There is a significant difference in the performance perceptions of Internet banking service quality dimensions between males and females

H2: There is a significant difference in the performance perceptions of Internet banking service quality dimensions across age groups

H3: There is a significant difference in the performance perceptions of Internet banking service quality dimensions across occupations

H4: There is a significant difference in the performance perceptions of Internet banking service quality dimensions across education levels

H5: There is a significant difference in the performance perceptions of Internet banking service quality dimensions across income groups

Independent Samples t-test has been used to test HI whereas H2-H5 have been tested through MANO VA.

5.4.1 Results of Independent Samples t-Test

There are five Internet banking service quality dimensions, therefore following set of hypotheses will be tested in H1:

H1a: There is a significant difference in the performance perceptions of Security/Privacy dimension between males and females

H1b: There is a significant difference in the performance perceptions of Reliability dimension between males and females

H1c: There is a significant difference in the performance perceptions of Efficiency dimension between males and females

H1d: There is a significant difference in the performance perceptions of Responsiveness dimension between males and females

H1e: There is a significant difference in the performance perceptions of Site Aesthetics dimension between males and females

The results obtained through independent samples t-test on Internet banking service quality perceptions between gender categories i.e., males and females are presented in table 4. Results of Levine's Test for Equality of Variances reveal that variances among males and females performance perceptions are not equal for Security/Privacy (6.240, p<.05), Responsiveness (F = 14.330; p<.01) and Site Aesthetics dimension (F = 3.868, p<.05). Therefore, for these three dimensions, t-values in the 'equal variance not assumed' row will be used for analyzing the results of independent samples t-test, whereas t-values in the 'equal variance assumed' row will be used for rest of the dimensions. It can be noticed that there are no significant differences between performance perceptions of males and females in case of reliability, efficiency and site aesthetics dimensions. Whereas, significant differences are observed on the security/privacy (t = -2.870, p<.01) and responsiveness (t = -2.349, p<.05) dimensions.

Therefore, H1a and H1d are accepted, whereas H1b, H1c and H1e are rejected.

5.4.2 Results of MANOVA

The summary of MANOVA results for demographic variables (age group, occupation, educational level and income group) is reported in tables 5 to 7.

Results in table 5 indicate that there is a significant difference in the customers' performance perceptions of Internet banking service quality dimensions across income group (Wilks' Lambda = .941, F = 5.530, p<.01) and occupation (Wilks' Lambda = .967, F = 1.822, p<.01). Whereas, there is no significant difference in customers' performance perceptions of Internet banking service quality dimensions on the bases of age group and educational qualification. Therefore, H3 and H5 are accepted, whereas H2 and H4 are rejected.

Table 6 exhibits the MANOVA and ANOVA results on Internet banking service quality perceptions for various occupations. The results suggest that there are significant differences in the performance perceptions of the dimensions security/privacy (F = 2.228, p<.05) and site aesthetics (F = 5.206, p = .000<.01) whereas for rest of the dimensions, there are no significant differences in the performance perceptions.

Furthermore, table 7 indicates that there are significant differences in the performance perceptions of all five Internet banking service quality dimensions across income groups. It can be seen that for security/privacy dimension, the differences are significant at .05 level whereas for rest of the dimensions, the differences are significant at .01 level.

5.5 Discussion

Gender wise females have rated their banks performance higher than males on all the dimensions except Reliability where both males and females have given the equal performance ratings. Overall, females' performance perceptions of banks performance are higher than males. Youngsters (18-25 years) found their banks most secure and efficient, whereas those between 46-60 years perceive their banks as most reliable and responsive.

Occupation wise, students and housewives have given highest ratings to their Internet banking experience. Interestingly, respondents in 'other' category (freelancers, retired persons etc) feel most secure and have rated their banks highest on Site Aesthetics, whereas, students have reported their banks to be most reliable and responsive. Customers in service and business occupations constitute 48% and 27% of the total sample size in this study. It is important to note that customers in both of these occupations have rated their respective banks much lower on performance as compared to rest of the occupation categories with few exceptions only (Security/Privacy in case of Service occupation and Efficiency in case of business persons). Therefore banking practitioners must pay serious attention to analyse the reasons underlying their relatively poorer performance perceptions.

Post graduates and above qualified customers find Internet banking to be most reliable and responsive. Those who are educationally least qualified (upto 12th standard) perceive their Internet banking experience as being most secure and efficient. They also find their banks' web site to be most aesthetically designed and updated as compared to postgraduates and graduates or those who have attended some colleges.

Customers in the highest income group (above Rs. 10 lacs) have given the highest performance ratings on all the five Internet banking service quality dimensions to their respective banks followed by second highest income group (Rs. 5-10 lacs) customers with only exception of Responsiveness dimension where the latter has rated their banks performance higher than the former. Middle income group (Rs. 2-5 lacs) customers find their banks as most unsecure, falling short on maintaining their privacy. They have also evaluated their banks' web sites lowest on aesthetics. Moreover, performance scores given to their Internet banking experience is much lower as compared to higher income groups. As this income group constitutes about 47% of the sample, banking practitioners must investigate and address the reasons behind such low performance scores of this large customer segment.

Statistical testing reveals that performance scores given by females is significantly higher on Security/Privacy and Responsiveness dimensions as compared to their male counterparts. There is no significant difference in Internet banking performance across age groups and education levels. Occupation wise, customers significantly differ on Security/Privacy and Site Aesthetics dimensions. However, banks' performance is significantly different on all the five dimensions across different income groups.

5.6 Managerial Implications and Future Directions

Internet banking service quality constitutes five dimensions and 22 attributes. Banking practitioners can use this scale to measure the service quality so as to better manage organisational resources. Users in the higher age groups (46+ years) have better service quality perceptions as compared to lower age groups (18-35 years). Younger age groups constitute about two-third of the Internet banking users. Therefore, immediate attention is required from the practitioners to ensure better service quality to this huge technology savvy customer segment.

Practitioners must address the reasons behind the lowest service quality perceptions, reported by business persons. Also, given the largest user base falling in the 'service' occupation, relatively much lower service quality perceptions should be given immediate attention for remedial actions. About half of the Internet banking users is from middle income group and they constitutes the largest Internet banking user base. Much of the growth of Internet banking services is going to be driven by this group in the years to come. It is quite unfortunate that this segment feels least secure regarding Internet banking transactions and also believes that their privacy is not being taken care of well by their banks. Therefore, practitioners must pay special attention to address the security and privacy concerns of this segment.

Bankers' perspectives regarding Internet banking service quality should also be addressed and investigated in future researches to better understand the problem domain. Impact of service quality on customer loyalty and satisfaction should also be examined using structural equation modeling.

REFERENCES

(1.) Al-Somali S.A., Gholami R. and Clegg B. (2008), "Internet Banking Acceptance in the Context of Developing Countries: An Extension of the Technology Acceptance Model", Operations and Information Management Groups, Aston Business School, Bormingham B47ET, UK.

(2.) Choudhury, K. (2008), "Service Quality: insights from the Indian Banking scenario", Australasian Marketing Journal, Vol. 16, No. 1, pp.48-61.

(3.) Gan, C, Clemes, M., Limsombunchai, V. and Weng, A. (2006). "A Logit Analysis of Electronic Banking in New Zealand", International Journal of Bank Marketing, Vol. 24, No. 6,pp.360-383.

(4.) Gerrard, P. and Cunningham, J.B. (2005), "The service quality of e-banks: an exploratory study", International Journal of Financial Service Management, Vol. 1, No. 1, pp. 102-117.

(5.) Glaveli, N., E. Petridou, C. Liassides and C. Spathis (2006), "Bank service quality: Evidence from five balkan countries", Managing Service Quality, No. 16,pp.380-394.

(6.) Hoffman, K.D. and Bateson, J.E. (2002), "Essentials of Services Marketing: Concepts, Strategies, and Cases, 2nd ed. Harcourt College Publishers.

(7.) I-Cube (2010), "Internet in India", available online at http://trak.in/tags/business/2010/04/07/internet-usage-india-report-2010.

(8.) Jain, A. (2006), "Adoption of mobile banking services in India", The ICFAI Journal of Systems Management, Vol. 4, No. 2, pp.63-72.

(9.) Jayawardhena, C. (2004), "Measurement of Service Quality in Internet Banking: The Development of an Instrument", Journal of Marketing Management, Vol. 20, No. 1/2, pp. 185-207.

(10.) Khan, M.S., Mahapatra, S.S. and Sreekumar (2009), "Service quality evaluation in Internet banking: an empirical study in India", International Journal of Indian Culture and Business Management, Vol.2, No. 1, pp.30-46.

(11.) Kilic, M. (2010), "Service Quality and Customer Satisfaction: An Application of Internet Banking in Turkey", International Journal of Arts and Sciences, Vol. 3, No. 13,pp.393-415

(12.) Kumbhar, V.M. (2011), "Service Quality Perception and Customers' Satisfaction in Internet Banking Service: A Case Study of Public and Private Sector Banks", Cyber Literature: The International Online Journal, Vol. 4, No. 2, pp.21-30.

(13.) Liago, Z. and Cheung, M. (2003), "Challenges to Internet e-banking", Communications of the ACM, Vol. 46, No. 12,pp.248-250.

(14.) Loonam, M. and O'Loughlin, D. (2008), "An observation analysis of e-service quality in online banking', Journal of Financial Services Marketing, Vol.13, No.2, pp.164-178.

(15.) Mols, N. (2000), "The Internet and banks' strategic distribution channel decisions", International Journal of Bank Marketing, Vol. 17, No. 16.

(16.) Mouawad, M. and Kleiner, B. (1996), "New developments in customer service training", Managing Service Quality, Vol. 6, No. 2, pp.49-56.

(17.) Palmer, A. and Cole, C. (1995), "Service Marketing", Englewood Cliffs, NJ: Prentice Hall.

(18.) Reserve Bank of India Report (2009), "Report on Trend and Progress of Banking in India 2008-09", pp.21, available online atwww.rbi.org.

(19.) Robledo, M.A. (2001), "Measuring and managing service quality: Integrating customer expectations", Managing Service Quality, Vol. 11, pp.22-31.

(20.) Siddiqi, K.O. (2011), "Interrelations between Service Quality Attributes, Customer Satisfaction and Customer Loyalty in the Retail Banking Sector in Bangladesh", International Journal of Business and Management", Vol. 6, No. 3.

(21.) Siu, N.Y.M. and Mou, J.C.W., (2005), "Measuring service quality in Internet banking: The case of Hong Kong", Journal of International Consumer Marketing, Volume 17, No. 4, pp.99-116.

(22.) Sohail, M. and Shanmugham, B. (2004), "E-banking and Customers preferences in Malaysia: An empirical investigation", Information Sciences, Informatics and Computer Science: An International Journal, Vol. 150, No. 3-4, pp.207-217.

(23.) Sohail, M.S. and Shaikh, N.M. (2008), "Internet banking and quality of service Perspectives from a developing nation in the Middle East", Online Information Review, Vol. 32 No. 1,2008, pp. 58-72.

Kamal K. Gupta [1] Dr. Ipshita Bansal [2]

[1] Associate Professor, INMANTEC Business School, Integrated Academy of Management and Technology, Ghaziabad-201009 (U.P.), kamal461@gmail.com

[2] Professor, WISDOM, Banasthali University, Bansathali Vidyapith, Rajasthan-304022, ibansalindia@yahoo.co.in

Table 1: Demographic Profile of the Sample

Variable Categories Response

Gender Female 27.1%
 Male 72.9%

Age Group 18-25 years 23.3%
 26-35 years 43.3%
 36-45 years 20.0%
 46-60 years 10.0%
 61+ years 3.3%

Occupation Service 48.0%
 Business 27.0%
 Self employed 12.7%
 Student 7.3%
 Housewife 4.0%
 Other 1.0%

Educational Up to 12th standard 10.7%
 Some college (including 52.0%
 Post Graduate and above 37.3%

Income Rs. 90,000-2,00,000 9.3%
 Rs. 2,00,001-5,00,000 46.6%
 Rs. 5,00,001-10,00,000 29.7%
 Rs. 10,00,000+ 14.4%

Base: 1350

Table 2: Results of Exploratory Factor Analysis

Dimension Item Description Factor Loading

 F1 F1 F3

F1 Security/ I feel secure in .855
Privacy providing sensitive
 information (e.g. credit
 card details) for online
 transactions

 Web site of Bank X is .862
 equipped with adequate
 security

 Bank X does not share my .866
 personal information with

 Bank X secures .879
 information regarding my
 internet banking
 activities

 Bank X is honest .897
 concerning its online
 transaction services

 Web site of Bank X makes .874
 appropriate statements
 concerning the completion
 of transactions

F2 Reliability Bank X does not misuse my .882
 personal information

 Bank X keeps accurate .839
 records of my account

 Bank X delivers the .874
 service exactly as
 promised

 Bank X always provides .883
 the service at the
 promised

 The Web site pages do not .867
 freeze once I enter my
 transaction information

 If there is a mistake, .860
 Bank X can make it right
 quickly and effectively

F3 Efficiency Navigating within Bank .956
 X's Web site is very easy
 Web site of Bank X loads
 its pages fast

 It is quick and easy to .899
 complete a transaction on
 the Web site of Bank X

 Finding what I need is .953
 simple and easy on the
 Web site

F4 Bank X is prompt in
Responsiveness responding to my queries-
 requests by e-mail or
 other means

 Web site of Bank X
 contains answers to
 frequently

 In case of problems I can
 speak with a person
 (through telephone or in
 person at a branch) at
 Bank X

F5 Site Web site of Bank X
Aesthetics contains relevant
 information explained in
 an easy to understand
 language

 Web site of Bank X is
 visually attractive

 Web site of Bank X is
 updated regularly

 % of Variance 24.74 17.45 15.96
 Cumulative % 24.74 42.19 58.15
 Eigen Value 5.44 3.84 3.51
 Reliability(Cronbach's .95 .87 .95
 Alpha)

Dimension Item Description Factor Loading

 F4 F5

F1 Security/ I feel secure in
Privacy providing sensitive
 information (e.g. credit
 card details) for online
 transactions

 Web site of Bank X is
 equipped with adequate
 security

 Bank X does not share my
 personal information with

 Bank X secures
 information regarding my
 internet banking
 activities

 Bank X is honest
 concerning its online
 transaction services

 Web site of Bank X makes
 appropriate statements
 concerning the completion
 of transactions

F2 Reliability Bank X does not misuse my
 personal information

 Bank X keeps accurate
 records of my account

 Bank X delivers the
 service exactly as
 promised

 Bank X always provides
 the service at the
 promised

 The Web site pages do not
 freeze once I enter my
 transaction information

 If there is a mistake,
 Bank X can make it right
 quickly and effectively

F3 Efficiency Navigating within Bank .883
 X's Web site is very easy
 Web site of Bank X loads
 its pages fast

 It is quick and easy to
 complete a transaction on
 the Web site of Bank X

 Finding what I need is
 simple and easy on the
 Web site

F4 Bank X is prompt in .949
Responsiveness responding to my queries-
 requests by e-mail or
 other means

 Web site of Bank X .873
 contains answers to
 frequently

 In case of problems I can .950
 speak with a person
 (through telephone or in
 person at a branch) at
 Bank X

F5 Site Web site of Bank X .801
Aesthetics contains relevant
 information explained in
 an easy to understand
 language

 Web site of Bank X is .875
 visually attractive

 Web site of Bank X is .879
 updated regularly

 % of Variance 12.50 10.47
 Cumulative % 70.65 81.12
 Eigen Value 2.75 2.30
 Reliability(Cronbach's .94 .85
 Alpha)

Extraction Method: Principal Component Analysis;
Rotation Method: Varimax with Kaiser Normalization;
Rotation converged in 5 iterations.

Table 3: Performance Mean Scores-Demography Wise

Demographic Variable Security/ Reliability Efficiency
 Privacy

Female 3.87 3.74 3.77
Male 3.70 3.74 3.69
18-25 years 3.79 3.75 3.76
26-35 years 3.74 3.72 3.70
36-45 years 3.73 3.71 3.71
46-60 years 3.65 3.78 3.74
61+ years 3.78 3.92 3.51
Service 3.82 3.78 3.69
Business 3.62 3.68 3.72
Self employed professional 3.73 3.70 3.71
Student 3.80 3.76 3.81
Housewife 3.62 3.84 3.79
Other 3.96 3.46 3.77
Upto 12th standard 3.89 3.68 3.74
Some college (including 3.71 3.74 3.72
Post Graduate and above 3.75 3.76 3.70
Rs. 90,000-2,00,000 3.74 3.64 3.60
Rs. 2,00,001-5,00,000 3.66 3.65 3.62
Rs. 5,00,001-10,00,000 3.83 3.85 3.77
Rs. 10,00,001+ 3.85 3.86 3.98

Demographic Variable Responsiveness Site
 Aesthetics

Female 3.88 3.77
Male 3.75 3.67
18-25 years 3.73 3.61
26-35 years 3.78 3.70
36-45 years 3.83 3.81
46-60 years 3.86 3.77
61+ years 3.67 3.50
Service 3.80 3.63
Business 3.70 3.62
Self employed professional 3.85 3.88
Student 3.86 3.85
Housewife 3.81 3.99
Other 3.74 4.21
Upto 12th standard 3.73 3.84
Some college (including 3.74 3.65
Post Graduate and above 3.86 3.73
Rs. 90,000-2,00,000 3.55 3.71
Rs. 2,00,001-5,00,000 3.66 3.58
Rs. 5,00,001-10,00,000 3.99 3.77
Rs. 10,00,001+ 3.92 3.91

Table 4: Independent Samples t-Test on Internet Banking Service
Quality Performance Perceptions between Males and Females

Dimension Levene's Test
 for Equality of
 Variances

 F Sig.

Security/Privacy Equal variances 6.240 ** .013
 assumed
 Equal variances
 not assumed
Reliability Equal variances .026 .873
 assumed
 Equal variances
 not assumed
Efficiency Equal variances .597 .440
 assumed
 Equal variances
 not assumed
Responsiveness Equal variances 14.330 * .000
 assumed
 Equal variances
 not assumed
Site Aesthetics Equal variances 3.868 ** .049
 assumed
 Equal variances
 not assumed

Dimension t-test for Equality of Means

 t df Sig.
 (2-tailed)

Security/Privacy -2.775 1348 .006

 -2.870 * 699.063 .004

Reliability -.099 1348 .921

 -.100 657.993 .921

Efficiency -1.372 1348 .170

 -1.378 659.131 .169

Responsiveness -2.248 1348 .025

 -2.349 ** 714.437 .019

Site Aesthetics -1.824 1348 .068

 -1.925 729.983 .055

* p < 01; ** p < 05

Table 5: MANOVA Summary for Demographic Variables
(Performance Perceptions)

Effect Value F Sig.

Age Group Wilks' Lambda .986 .955 .516
Occupation Wilks' Lambda .967 1.822 * .007
Educational Qualification Wilks' Lambda .987 1.762 .062
Income Group Wilks' Lambda .941 5.530 * .000

* p < .01

Table 6: Follow-up Test-Univariate ANOVAs for Occupation
(Performance Perceptions)

Source Dependent Type III Sum df Mean
 Variable of Squares Square

Occupation Security/Privacy 11.292 5 2.258
 Reliability 4.218 5 .844
 Efficiency 1.511 5 .302
 Responsiveness 4.289 5 .858
 Site Aesthetics 20.880 5 4.176

Source Dependent F Sig.
 Variable

Occupation Security/Privacy 2.228 ** .049
 Reliability .801 .549
 Efficiency .334 .893
 Responsiveness .956 .444
 Site Aesthetics 5.206 * .000

* p < .01; ** p < .05

Table 7: Follow-up Test-Univariate ANOVAs for Income Group
(Performance Perceptions)

Source Dependent Type III Sum df Mean
 Variable of Squares Square

Income Group Security/Privacy 9.418 3 3.139
 Reliability 13.699 3 4.566
 Efficiency 22.713 3 7.571
 Responsiveness 36.506 3 12.169
 Site Aesthetics 19.627 3 6.542

Source Dependent F Sig.
 Variable

Income Group Security/Privacy 3.097 ** .026
 Reliability 4.372 * .005
 Efficiency 8.526 * .000
 Responsiveness 13.957 * .000
 Site Aesthetics 8.158 * .000

* p < .01; ** p < .05