bus 485

Course ID: BUS-485Course Title: Business Research Methods

Section: 05

Submitted To:Dr.Samiul P. Ahmed

Senior Lecturer

School of Business

Independent University Bangladesh.

Submitted By:

Name IdRokonuzzaman 1120455Susmita Sharmin 1120513Abdullah Al Mamun 1121100

Mydul Islam Khan 1130046

Kamrul Islam khan 1010116

Submission date- 1st December, 2014

Letter of Transmittal

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December 1, 2014

Dr.Samiul P. Ahmed

Senior Lecturer

School of Business

Independent University Bangladesh.

Subject: Submission of group report.

Honorable Sir,

It is an enormous pleasure to submit our research paper titled “Factor that affect customer preference in online banking in Bangladesh” assigned as a requirement of our course related. To make this report up to the standard we tried our best to fulfill the requirements by implementing the knowledge we have gather from the course. Thank you very much for providing us this type of opportunity and giving us the necessary guidance and direction needed for preparing the report.

We have tried our level best to make this report holistic and informative enough. We would be grateful if you consider those from excusable point.

Sincerely Yours, Rokonuzzaman 1120455Susmita Sharmin 1120513Abdullah Al Mamun 1121100

Mydul Islam Khan 1130046

Kamrul Islam khan 1010116

TABLE OF CONTENT

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Page No.Introduction 4

Purpose of the study 5

Objective of the study 6Literature ReviewInternet Banking 7Customer Preference 7Service Quality 7-8Responsiveness 8Privacy 8Assurance 8Reliability 8-9Conceptual Framework 10

Research Question 11

Hypothesis 11

Research Methodology

Research Design 12Research Type 12

Sampling Method 12Instrument 12

Data collectionFrequency Table 13-17

Reliability Analysis 18-20

Regression Analysis 21-26

Correlation Analysis 27-30

Pearson’s Correlation Analysis 31-34Spearman’s Correlation Analysis 35

Reference 36-37Appendixes 38-41

Introduction

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The internet is the network of networks. It is a global system of interconnected computer networks that uses the standard internet protocol suite (Transmission Control Protocol/Internet Protocol) or (TCP/IP). The internet consists of billions of public, private, academic, business and government networks ranging from a local to a global scope. These networks are linked by a broad range of electronic, wireless and optical networking technologies. The internet has become a necessity in every field. The importance of internet has reached to a new level as it carries inter-linked Hypertext documents of the World Wide Web and a wide range of important information resources and sources.

The idea of Internet Banking came with the rise of users of the internet and with the development of the World Wide Web. The programmers have been working on data bases of banking transactions long ago and an idea of online banking transactions had evolved at that time in the early 1980’s. New technologies and the advancement of computer devices created an opportunity to start a new trend of online shopping. Online Shopping or shopping from the website using the internet promoted the use of credit cards. To facilitate online shopping date ware housing or date storage facilities were used. During the development of the Automatic Teller Machines or ATMs the development of the databases of banking transactions were also used.

Online service provision is increasingly becoming a favored distribution channel by customers and service providers alike. Within recent years there has been a concerted effort by banking institutions to increase the number and range of services provide online. To encourage participation, banks are both rewarding customers for using online services and concurrently penalizing customers for utilizing offline services. For example, many banks charge premium fees for customers who withdraw funds from retail shop-fronts rather than ATMs. In addition, banks have created specific online services and products that can only be accessed or managed online.

However, within the context of this drive for online service provision and efficiency, banks appear to recognize that their ongoing success is also reliant upon developing relationships with their customers. For instance, banks have adopted a plethora of security measures designed to encourage customers to “trust” their service infrastructure. However, there is some suggestion that reducing the human element in banking may impact upon customer satisfaction, and impede the development of long lasting relationships with customers (Cox and Dale, 2001; Jabnoun and Al-Tamimi, 2003). To remedy this, it may be necessary for banks to design online services so as to not only satisfy, but “delight” their customers, ensuring both customer retention and loyalty.

Hence there is a need to fully understand customer encounters and interactions within the context of online banking. In particular, this research will examine the following questions: How do customers judge the quality of online banking sites?; Are their expectations any different for online and offline service encounters?; and Can banks rightly expect the same outcomes for online service quality as traditional service quality, for example customer delight, loyalty, strengthening relationships? Research exploring or explaining such interactions and the differences between online and offline experiences

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are limited. However, prior research contends (particularly within the banking sector), that success with online experiences mirrors success with traditional face-to-face experiences of customers (Hitt and Frei, 2002). This paper reports the findings of a research project exploring the link between perceptions of online service quality by bank customers, perceived trustworthiness of online banking services and the impact on customer delight and the strength of the relationship that a customer has with their bank. We were particularly interested in exploring the relationship between online service quality and the development of customer relationships as banks accept that this is the main measure of service quality delivery.

Purpose of the Study:

The purpose of this study is to find out the factors of internet banking that can affect customer’s preference. It will help the researchers to look into the overall condition of internet banking.

Objective of the study:

Broad objective: Prepare the report on “The impact of internet banking on customer preference.

Specific Objectives:To understand the internet banking.To identify the factors of internet banking system.To find out the problem of client and employees to changes in internet Banking.To identify the problem in operation of internet banking.To know the terms, rules and condition of internet banking.

Literature Review:

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Internet Banking: Service quality refers to the difference between customer expectations of what a firm should provide (i.e. expectations) and perceived service performance (Gronroos, 1982; Parasuraman etal., 1988). Service quality is viewed as an organizational asset and key determinant of corporate marketing and financial performance (Yasin et al., 2004). The assessment of service quality is largely based upon the work of Parasuramanetal. (1988) who constructed a measure of perceived service quality termed SERVQUAL. SERVQUAL has been widely used in a variety of service industries, including the banking industry (e.g. Joseph et al., 1999; Jun et al., 1999; Caruana, 2002). The rise of Internet Banking is also due to its number of benefits for both the provider and the customer as well. From the bank‟s perspective these are mainly related to cost savings (Sathye, 1999; Robinson, 2000) and Internet Banking remains one of the cheapest and more efficient delivery channels (see Pikkarainen et al., 2004). Other rationales for the adoption of such services are also related to competition as Internet Banking strategy has been an interesting way to retain existing customers and attract new ones (Robinson, 2000). Among the numerous advantages to banks feature mass customization, more effective marketing and communication at lower costs amongst others (Tuchila, 2000). Benefits for the end users are numerous as well and include mainly convenience of the service (time saved and globally accessible service); lower cost of transaction and more frequent monitoring of accounts among others (see Pikkarainen et al., 2004). It is noteworthy that there is also a number of push factors encouraging the adoption of internet banking that have been evoked in the literate In spite of all these numerous advantages of Internet Banking, many people still prefer to conduct their banking transactions at the bank, something which they had been doing for years. Thus, apart from security aspects, there are numerous factors and barriers that making people still prefer the traditional way for their banking transactions. Internet banking is

advantageous to both the banks and customers.

Customer preference: Customer preference is a very important issue for any business. Customer preference is the desire by any individual for the consumption of goods and services that translate based on income or wealth for purchases of goods and services to be combined with the consumer’s time to define consumption activities. But in online Banking service it is more important than others. In this sector it is related with some sub factors like Service quality, responsiveness, assurance, privacy and reliability. Those factors are creating value to the customer to take the online service from banks. Now days there are two types of banking. One is traditional banking and another is online banking. A customer can chose any one of them which are more preferable to him. But they can only choose when that service fulfills those sub factors. Mainly in online banking service also have some other small issues but those sub factors are mainly focused. When a customer thinks to take a service they are just thought about issues like those. Then they implement those factors and make their valuable decision. Actually customer preference is how a customer implements the service and suits that service for their oneself.

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Service Quality: Service quality has become an issue that businesses have focused up onwith e-services that enable electronic communication; information gathering, transaction processing and data interchange between online vendors and customers across time and space (Featherman and Pavlou, 2002). In online environments, service quality is defined as the extent to which a website facilitates efficient and effective shopping, purchasing, and delivery of product and services (Zeithaml et al., 2002). Santos (2003) described e-service quality in terms of overall customer evaluations and judgments regarding the excellence and the quality of e-service delivery in the virtual marketplace. A study by Parasuraman et al. (2005) on the Internet service quality of online shopping websites resulted in the development of a service quality scale, the e-SQ scale, consisting of seven dimensions: efficiency, system availability, fulfillment, privacy, responsiveness, compensation and contact. It is slightly different from the e-SQ scale developed by Zeithaml et al. (2001) which has 11 dimensions: reliability, responsibility, access, flexibility, and ease of navigation, efficiency, assurance, security, price knowledge, site aesthetics and customization / personalization. Furthermore, a study by Ribbink et al. (2004) in an e-commerce context (online book and CD stores) the service quality dimensions consisted of: ease of use, escape, responsiveness and customization. Cristobal et al. (2007) further developed a service quality scale which consists of multidimensional constructs of web design, customer service, assurance and order management.

Responsiveness: Responsiveness “is the willingness to help customers and provide Prompt service” (Zeithaml et al, 2006). This dimension is concerned with dealing with the customer’s requests, questions and complaints promptly and attentively. Handling of problems and returns through the site. A Bank is known to be responsive when it communicates to its customers how long it would take to get answers or have their problems dealt with. To be successful, companies need to look at responsiveness from the view point of the customer rather than the company’s perspective (Zeithaml et al., 2006). Responsiveness also captures the notion of flexibility and ability to customize the service to customers need. Standard for speed and promptness that’s reflects the company’s view of process requirement may be very different from the customer requirement. Responsiveness concerns the willingness or eagerness of employees for service provision. It involves turnaround time of service actions like timely dispatch of a receipt or quickly calling back the customer (Zethaml et al., 2002).

Privacy and Security: Trust has been identified as an important factor for those financialRelated internet services; moreover, empirical study supports that consumers make many online decisions almost solely on the basis of trust (Avinandan & Prithwiraj, 2003; Urban, Sultan and Qualls, 2000). For Internet banking, trust plays an extremely important role for the acceptance and use, which has been supported by both research and empirical studies, especially in developing countries (Benamati and Serva, 2007). Trust building is very important for internet banking adoption. Privacy and security concern are the two crucial factors for trust building, which has been pointed out as the top two factors influencing user‟ adoption. Privacy and security have been discussed broadly both in academia and practice. Privacy is defined as the ability to control and manage information about oneself (Belanger, Hiller and Smith, 2002). Security is defined as the

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ability to protect against potential threats. From consumers‟ standpoint, security is the ability to protect consumers‟ information from information fraud and theft in the online banking business. Customers have doubts about the trust ability of the e-bank's privacy policies (Gerrard and Cunningham, 2003). Trust has striking influence on user's willingness to engage in online exchanges of money and personal sensitive information (Friedman et al, 2000; Wang et al, 2003). Privacy is an important dimension that may affect users' intention to adopt e-based transaction systems. Encryption technology is the most common feature at all bank sites to secure information privacy, supplemented by a combination of different unique identifiers, for instance, a password, mother’s maiden name, a memorable date, or a few minutes of inactivity automatically logs users off the account. Besides, the Secure Socket Layer, a widely-used protocol use for online credit card payment, is designed to provide a private and reliable channel between two communicating entities; the use of Java Applet that runs within the user's browser; the use of a Personal Identification Number, as well as an integrated digital signature and digital certificate associated with a smart card system (Hutchinson and Warren, 2003). Thus, a combination of smart card and biometric recognition using fingerprints offers a more secure and easier access control for computers than the password method. Zeithaml et al (2000) developed e-SERVQUAL for measuring e-service quality, identifying 11 dimensions: access; ease of navigation; efficiency; flexibility; reliability; personalization; security/privacy; responsiveness; assurance/trust; site aesthetics; and price knowledge. Hence, it is hypothesized that privacy has a positive effect on customer satisfaction.

Assurance: Assurance refers to the ability the internet banking convey trust and confidence to their consumers. Madu and Madu argued that the online banking must ensure that their employees are knowledgeable about their operation, and courteous in their responses to the customers. Schneider and Perry suggested some web features that help promote the assurance to consumers. For instances, providing detailed banks information (e.g. background, mission statement, announcement, banks handling private data, a direct relationship might be established among the three concepts. Assurance is defined as “the employees‟ knowledge and courtesy and the service provider’s ability to inspire trust and confidence” (Zeithaml et al., 2006). According to Andaleeb and Conway (2006), assurance may not be so important relative to other industries where the risk is higher and the outcome of using the service is uncertain. The trust and confidence may be represented in the personnel who link the customer to the organization (Zeithaml et al., 2006. Assurance is a set of courtesy and knowledge of employees along their ability to instill confidence. The assurance dimension is taken from an integrated Assurance is a set of courtesy and knowledge of employees along their ability to instill confidence. The assurance dimension is taken from an integrated.

Reliability: Reliability means the quality of being dependable or reliable on something (Linand Chin 2007). Reliability is defined as “the ability to perform the promised servicedependably and accurately” or “delivering on its promises” (Zeithaml et al, 2006, p. 117).Regarding to service quality dimension of reliability the internet has big effect on it.Madu2002. Santos 2002 defines reliability as the ability to perform the promise service accurately and frequently updating the website. Since most of the online customers are really concerned about the reliability of virtual service providers. (Yant and fand 2004).

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( Gilly2002) sate reliability as the product that came was represent accurately by the website, you get what you ordered from the site the product was delivered in time promise by the bank. Based on the theoretical review in this study it is found that reliability is one of the most highly frequently mention dimension in e service quality. (Parasyraman1985,Johnston 1988). Reliability is found as important in banking perspective however it’s different from customer perspective. For internet banking reliability is mostly based on physical bank. It is important for the bank to conduct business both online and offline. It is also suggest that technical function and accurate record provided by internet should be focused on by banking service provider in on line services. Madu2002. Reliability involves dependability and uniformity in performance. It means the firm honors the commitments it makes. Specifically, billing accuracy, proper record maintenance and delivering the service within acceptable time limit describes the reliability of online services (Saha and Zhao, 2005).

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Conceptual Framework:

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Customer Preference

Assurance

Responsiveness

Service Quality

Privacy

Reliability

Figure: Conceptual Framework

Research Question:

1) Does service quality affect customer preference in online Banking in Bangladesh?2) Does Responsiveness affect customer preference in online Banking in Bangladesh?3) Does Assurance affect customer preference in online Banking in Bangladesh?4) Does Privacy affect customer preference in online Banking in Bangladesh?5) Does Reliability affect customer preference on inline banking in Bangladesh?

Hypothesis:

Ho1: Service quality doesn’t affects customer preference in online Banking in Bangladesh.

Ha1: Service quality affects customer preference in online Banking in Bangladesh.

Ho2: Responsiveness doesn’t affects customer preference in online Banking in Bangladesh.

Ha2: Responsiveness affects customer preference in online Banking in Bangladesh.

Ho3: Assurance doesn’t affects customer preference in online Banking in Bangladesh.

Ha3: Assurance affects customer preference in online Banking in Bangladesh.

Ho4: Privacy doesn’t affects customer preference in online Banking in Bangladesh.

Ha4: Privacy affects customer preference in online Banking in Bangladesh.

Ho5: Reliability doesn’t affects customer preference in online Banking in Bangladesh.

Ha5: Reliability affects customer preference in online Banking in Bangladesh.

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RESEARCH METHODOLOGY

Research Design:

As shown in the diagram of the conceptual framework of the research there are five independent variables and one dependent variable. The conceptual framework also shows that there is a direct relationship between the Independent variables and the dependent variable. It is very important to explore the type & intensity of this relationship so that the earlier mentioned purpose of the study can be met. The study will enable the bank to understand the factors of internet banking which actually helps to improve the Customer retention. Thus they can plan for their future plan of action or strategies and try to provide a good internet banking service to retain more customers.

Research Type:

This research is Descriptive in nature. Under descriptive research it will be a causal study. Because the type of study that will be carried out to test the hypothesis and to answer the research questions will be a causal study. This type of study will show a cause and effect relationship of the independent and dependent variables.

Sampling Method: 20 peoples were interviewed who are using internet banking in Bangladesh. So the sample size is 20.

Instrument: A structured questionnaire was selected for this study. The questionnaire is consisting of 18 questions regarding Service Quality, Responsiveness, Privacy, Assurance and Reliability. Each item is of 5 point Liker scale, that ranges from 1(strongly disagree) to 5 (strongly agree).

Data Collection:

For collecting the data both primary and secondary sources are used.

Primary Sources: Conversations with the people who are familiar to online banking.

Questionnaires used in interview.

Secondary Sources: Various Publications and manuals on their internet banking.

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Data Analysis:

For data analysis purpose, SPSS software have used as it provides in-depth investigation in data analysis and visualization. Reliability analysis, regression analysis and co-relationAnalysis have used to analysis of the data. Stepwise regression analysis can be carried out to test hypotheses to find which independent variables individually and collectively provide a meaningful contribution towards the explanation of the dependent variable.

Frequency Table:

The sample size of the research consists of 11 male and 9 female respondents. 55% of male and 45% of female customers participates in this survey which is shown at below.

Among the responding 4 customers age was between 15-25 years, 7 customer’s age was between 26-35 years, 8 customers age was between 36-45 years and 1 customers Age was between 46 and above which is shown below.

Statistics

gender age marital status income

N Valid 20 20 20 20

Missing 0 0 0 0

Frequency Table:

Gender

Frequency Percent Valid PercentCumulative Percent

Valid 1.00 11 55.0 55.0 55.0

2.00 9 45.0 45.0 100.0

Total 20 100.0 100.0

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Age


Valid 1.00 4 20.0 20.0 20.0

2.00 7 35.0 35.0 55.0

3.00 8 40.0 40.0 95.0

4.00 1 5.0 5.0 100.0

Total 20 100.0 100.0

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Marital status


Valid 1.00 11 55.0 55.0 55.0

2.00 9 45.0 45.0 100.0

Total 20 100.0 100.0

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Income

Frequency Percent Valid PercentCumulative

Percent

Valid 1.00 4 20.0 20.0 20.0

2.00 5 25.0 25.0 45.0

3.00 5 25.0 25.0 70.0

4.00 6 30.0 30.0 100.0

Total 20 100.0 100.0

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Reliability Analysis

The Most highly recommended measure of internal consistency is provided by co-efficient alpha or Cronbach's Alpha as it is provided a good reliability estimates in most situations. . A commonly accepted rule of thumb for describing internal consistency using Cronbach'salpha(http://en.wikipedia.org/wiki/Cronbach's_alpha#cite_note-Cortina-8) is as follows-

α ≥ 0.9 Excellent 0.7 ≤ α < 0.9 Good 0.6 ≤ α < 0.7 Acceptable 0.5 ≤ α < 0.6 Poor α < 0.5 Unacceptable

Over all Cronbach’s alphas of all variables in our study are more than acceptable and recommended values of 0.50 by Nunnally (1970). Cronbach's Alpha value should be .50-.60 which is sufficient;.7 or above is desirable.(p-131, N.Jahangir).

In our study, we calculated Cronbach's alpha for each variable under each sample group which has been shown Below ---.

Scale: ALL VARIABLES

Case Processing Summary

N %

Cases Valid 20 100.0

Excludeda 0 .0

Total 20 100.0

a. Listwise deletion based on all variables in the procedure.

Service Quality and customer preference

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Reliability Statistics

Cronbach's Alpha N of Items

.841 3

Interpretation: Here the alpha value is 0.841, which is more than 0.5. So, the question is clear to the audience.

Responsiveness and Customer preference:



.822 3


Assurance and Customer preference:



.739 3


Reliability and Customer preference:

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.702 3


Privacy and Customer preference:



.689 3


Decision statement: The three questions about the variable service quality’s Cronbach's Alpha is .841 it. We can say that these three questions are reliable to measure the variable. The three questions about the variable responsiveness’s Cronbach's Alpha is .822. We can say that these three questions are reliable to measure the variable. The three questions about the variable assurance’s Cronbach's Alpha is .739 it . We can say that these three questions are reliable to measure the variable. The three questions about the variable reliability’s Cronbach's Alpha is .702 it . We can say that these three questions are reliable to measure the variable. The three questions about the variable privacy’s Cronbach's Alpha is .689 it . We can say that these three questions are reliable to measure the variable.

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Regression Analysis:

Service Quality and customer preference

Variables Entered/Removedb

ModelVariables Entered

Variables Removed Method

1 service qualitya

. Enter

a. All requested variables entered.

b. Dependent Variable: customer preference

Model Summary

Model R R SquareAdjusted R Square

Std. Error of the Estimate

1 .794a .630 .609 .52488

a. Predictors: (Constant), service quality

ANOVAb

ModelSum of Squares Df Mean Square F Sig.

1 Regression 8.435 1 8.435 30.618 .000a

Residual 4.959 18 .276

Total 13.394 19

a. Predictors: (Constant), service quality


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Coefficientsa

Model

Unstandardized Coefficients

Standardized Coefficients

t Sig.B Std. Error Beta

1 (Constant) 1.410 .319 4.426 .000

service quality .570 .103 .794 5.533 .000

a. Dependent Variable: customer preferenceInterpretation: Here the value of 𝑅2 is .630 means 63%. That’s mean the effect of service quality on customer preference is 63%

Responsiveness and customer preference:




1 responsivenessa

. Enter


b. Dependent Variable: customer preference Model summary



1 .341a .117 .067 .81082

a. Predictors: (Constant), responsiveness

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ANOVAb


1 Regression 1.561 1 1.561 2.374 .141a

Residual 11.834 18 .657

Total 13.394 19

a. Predictors: (Constant), responsiveness


Coefficientsa

Model




1 (Constant) 4.498 .957 4.699 .000

responsiveness -.449 .291 -.341 -1.541 .141

a. Dependent Variable: customer preference

Interpretation: Here the value of 𝑅2 is .117 means 11.7%. That’s mean the effect of responsiveness on customer preference is 11.7%.

Assurance and customer preference:




1 assurancea . Enter



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Model Summary



1 .417a .174 .128 .78395

a. Predictors: (Constant), assurance

ANOVAb


1 Regression 2.332 1 2.332 3.795 .067a

Residual 11.062 18 .615

Total 13.394 19

a. Predictors: (Constant), assurance


Coefficientsa

Model




1 (Constant) 2.024 .555 3.646 .002

assurance .373 .192 .417 1.948 .067

a. Dependent Variable: customer preferenceInterpretation: Here the value of 𝑅2 is .174 means 17.4%. That’s mean the effect of assurance on customer preference is 17.4%.

Reliability and customer preference

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1 reliabilitya . Enter



Model Summary



1 .922a .850 .841 .33445

a. Predictors: (Constant), reliability

ANOVAb


1 Regression 11.381 1 11.381 101.747 .000a

Residual 2.013 18 .112

Total 13.394 19

a. Predictors: (Constant), reliability


Coefficientsa

Model




1 (Constant) .220 .290 .759 .457

reliability .905 .090 .922 10.087 .000


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Interpretation: Here the value of 𝑅2 is .850 means 85%. That’s mean the effect of reliability on customer preference is 85%.

Privacy and customer preference:




1 privacya . Enter



Model Summary



1 .337a .113 .064 .81222

a. Predictors: (Constant), privacy

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ANOVAb


1 Regression 1.520 1 1.520 2.304 .146a

Residual 11.875 18 .660

Total 13.394 19

a. Predictors: (Constant), privacy


Coefficientsa

Model




1 (Constant) 3.915 .598 6.545 .000

privacy -.281 .185 -.337 -1.518 .146


Interpretation: Here the value of 𝑅2 is .113 means 11.3%. That’s mean the effect of Privacy on customer preference is 11.3%.

Correlation analysis:

Correlation analysis was conducted on all variables to explore the relationship between variables. The bivariate correlation procedure was subject to a two tailed of statistical significance at two different levels highly significant (p<.01) and significant (p<.05).

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Hypothesis testing:

Ho: null hypothesis = no relationshipHa: alternative hypothesis = relationship

Relationship between Service Quality and Customer preference:

Correlations

customer preference service quality

customer preference Pearson Correlation 1 .794**

Sig. (2-tailed) .000

N 20 20

service quality Pearson Correlation .794** 1


N 20 20

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

Interpretation: There is a strong significant relationship between Service quality and customer preference.

Relationship between responsiveness and Customer preference:

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Correlations

customer preference

responsiveness

customer preference Pearson Correlation 1 -.341


N 20 20

responsiveness Pearson Correlation -.341 1


N 20 20

Interpretation: As we know if value is -1 to .00 then it would be negative relationship and here we can see our value is -.341 then it is also a negative relationship. There is a moderate relationship between them.

Relationship between assurance and Customer preference:

Correlations

customer preference assurance

customer preference Pearson Correlation 1 .417


N 20 20

assurance Pearson Correlation .417 1


N 20 20

Interpretation: There is a moderately significant relationship between responsiveness and customer preference.

Relationship between Service reliability and Customer preference:

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Correlations

customer preference reliability

customer preference Pearson Correlation 1 .922**


N 20 20

Reliability Pearson Correlation .922** 1


N 20 20


Interpretation: There is a very strong significant relationship between reliability and customer preference.

Relationship between privacy and Customer preference:

Correlations

customer preference privacy

customer preference Pearson Correlation 1 -.337


N 20 20

Privacy Pearson Correlation -.337 1


N 20 20

Interpretation: As we know if value is -1 to .00 then it would be negative relationship

and here we can see our value is -.337 then it is also a negative relationship. There is a

moderate relationship between them.

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Decision Statement: In hypotheses 1 According to Pearson’s correlation coefficient theory we can see that the value of customer preference and service quality is .794**. So there is a relationship between them. As we know if value is .00 to +1 then it would be positive relationship and here we can see our value is +.794** then it is also a positive relationship. There is a strong relationship between them. Here, p ≤ 0.05, reject null hypothesis and accept alternative.

In hypotheses 2 According to Pearson’s correlation coefficient theory we can see that the value of customer preference and responsiveness is .341**. So there is a relationship between them. As we know if value is .00 to +1 then it would be positive relationship and if value is -1 to .00 then it would be negative relationship and here we can see our value is -.341** so it is also a negative relationship. There is a weak relationship between them. Here, p ≤ 0.05, accept null hypothesis and reject alternative.

In hypotheses 3 According to Pearson’s correlation coefficient theory we can see that the value of favorable customer preference and assurance is .417**. So there is a relationship between them. As we know if value is .00 to +1 then it would be positive relationship and here we can see our value is +.417** then it is also a positive relationship. There is a moderate relationship between them. Here, p ≤ 0.05, reject null hypothesis and accept alternative.

In hypotheses 4 According to Pearson’s correlation coefficient theory we can see that the value of customer preference and reliability is .922**. So there is a relationship between them. As we know if value is .00 to +1 then it would be positive relationship and here we can see our value is +.922** then it is also a positive relationship. There is a very strong relationship between them. Here, p ≤ 0.05, reject null hypothesis and accept alternative.

In hypotheses 5 According to Pearson’s correlation coefficient theory we can see that the value of customer preference and Privacy is .337**. So there is a relationship between them. As we know if value is .00 to +1 then it would be positive relationship and if value is -1 to .00 then it would be negative relationship and here we can see our value is -.337** so it is also a negative relationship. There is a weak relationship between them. Here, p ≤ 0.05, accept null hypothesis and reject alternative.

Spearman’s Correlation:

Spearman‘s correlation is used to see whether there is any relationship among variables or not. If correlation coefficient or ρ (rho) ≠ 0 and significance or α (alpha) ˂0.05, there will be a relationship between variables.

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Correlations

customer preference service quality

Spearman's rho customer preference Correlation Coefficient

1.000 .809**

Sig. (2-tailed) . .000

N 20 20

service quality Correlation Coefficient

.809** 1.000

Sig. (2-tailed) .000 .

N 20 20


In case of hypotheses 1 Here correlation coefficient (rho) is not equal to 0 and significance, alpha (α) is >0.05. So according to the spearman’s correlation theory there is no relationship between customer preference and service quality.


Correlations

customer preference

Responsiveness


1.000 -.362


N 20 20

Responsiveness Correlation Coefficient

-.362 1.000


N 20 20

In case of hypotheses 2 Here correlation coefficient (rho) is not equal to 0 and significance, alpha (α) is <0.05. So according to the spearman’s correlation theory there is a relationship between customer preference and responsiveness.

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Correlations

customer preference assurance


1.000 .414


N 20 20

Assurance Correlation Coefficient

.414 1.000


N 20 20

In case of hypotheses 3 Here correlation coefficient (rho) is not equal to 0 and significance, alpha (α) is >0.05. So according to the spearman’s correlation theory there is no relationship between customer preference and assurance.

Spearman‘s correlation is used to see whether there is any relationship among variables or not. If correlation coefficient or ρ (rho) ≠ 0 and significance or α (alpha) ˂0.05, there will be a relationship between variables

Correlations

customer preference reliability


1.000 .873**


N 20 20

reliability Correlation Coefficient

.873** 1.000


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N 20 20


In case of hypotheses 4 Here correlation coefficient (rho) is not equal to 0 and significance, alpha (α) is >0.05. So according to the spearman’s correlation theory there is no relationship between customer preference and reliability.


Correlations

customer preference Privacy


1.000 -.296


N 20 20

Privacy Correlation Coefficient

-.296 1.000


N 20 20

In case of hypotheses 5 here correlation coefficient (rho) is not equal to 0 and significance, alpha (α) is < 0.05. So according to the spearman’s correlation theory there is a relationship between customer preference and privacy.

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Decision Statement: In case of hypotheses 1 Here correlation coefficient (rho) is not equal to 0 and significance, alpha (α) is >0.05. So according to the spearman’s correlation theory there is no relationship between customer preference and service quality. In case of hypotheses 2 Here correlation coefficient (rho) is not equal to 0 and significance, alpha (α) is <0.05. So according to the spearman’s correlation theory there is a relationship between customer preference and responsiveness. In case of hypotheses 3 Here correlation coefficient (rho) is not equal to 0 and significance, alpha (α) is >0.05. So according to the spearman’s correlation theory there is no relationship between customer preference and assurance. In case of hypotheses 4 Here correlation coefficient (rho) is not equal to 0 and significance, alpha (α) is >0.05. So according to the spearman’s correlation theory there is no relationship between customer preference and reliability. In case of hypotheses 5 Here correlation coefficient (rho) is not equal to 0 and significance, alpha (α) is <0.05. So according to the spearman’s correlation theory there is a relationship between customer preference and privacy.

Limitations

First the findings of the study should be viewed within the context of certain limitations which could provide the basis for further research on the subject. First as the result of content analysis method used to evaluate international green advertisement, we could not trace various external factors like political-legal, socio – economic, technical.

35

Time was very limited. It is quite impossible to make research paper on online banking within 2.5 months.

Good experience may be helpful for doing a survey properly whereas inexperience may cause to face difficulties. To us it is the first time to experience a survey. So we don’t have much experience in this sector.

We only worked on the people of Dhaka. We don’t know what would be the opinion of those who lives in outside the Dhaka.

As it is new in our so it took time to make people understand “online banking.” Our sample size was relatively small which is not adequate enough for the

research. Due to limited time, budget we have to concise our sample size. Because of this limited access, our collected data were not that much heterogeneous.

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Appendixes

Part-A

Personal Information:

1. Male Female

2. Age: 15-25

26-35

36-45

46 and above

41

3. Marital status:

Married Unmarried

4. Income:

5,000-15,000 Taka

16,000-25,000 Taka

26,000-35,000 Taka

36,000 and above

Part-B

1StronglyDisagree

2Disagree

3Neither Disagree

Nor Agree

4Agree

5Strongly Agree

Please click (√) the number, which most closely responds to your thinking.

service quality

1) I prefer online banking over traditional banking. 1 2 3 4 5

2) The online banking services of banks are more satisfying than 1 2 3 4 5

42

traditional banking service.

3) Online banking service solves any types of problem quicker than traditional banking service?

1 2 3 4 5

Responsiveness

4) Banks are willingly helps their customers and gives the best services both types of banking

1 2 3 4 5

5) You can transect anywhere easily without any problem through online banking service

1 2 3 4 5

6) The function of the online service and procedure is easy and comfortable for users

1 2 3 4 5

Assurance

7) The transaction process work rapidly and correctly 1 2 3 4 5

8) Bank sent u information about transaction within in a certain period of time promises to its customers about their Service.

1 2 3 4 5

9) Bank provides adequate and accurate information’s to its 1 2 3 4 5

43

customers

Reliability

10) The information context and texts are user-friendly which provides by the bank

1 2 3 4 5

11) Bank keeps all the transaction information and personal information classified

1 2 3 4 5

12) Bank provide strongly secured password for online transaction

1 2 3 4 5

privacy

13) Bank provide enough privacy and security on your valuable information through online

1 2 3 4 5

14) Bank security system is strong enough to detect any type of threat

1 2 3 4 5

15) Bank provides a much secured credit card and ATM machine which provide enough privacy for their customer.

1 2 3 4 5

Customer Preference

16) We think online banking is more comfortable than traditional 1 2 3 4 5

44

banking

17) We think online banking fulfill all the customer needs 1 2 3 4 5

18) We think online banking satisfy the customer more than traditional banking

1 2 3 4 5

45

bus 485

Documents

idea of internet banking

importance of internet

research type

research question

reliability analysis

mydul islam khan

kamrul islam khan

new trend of online