IMPACT OF INTERNET
BANKING ON CUSTOMER SATISFACTION
TO THE STUDY
Customer satisfaction is a measure of how products
and services supplied by a company meet or surpass customer expectation.
Customer satisfaction is also defined as “the number of customers, or
percentage of total customers, whose reported experience with a firm, its
products or its services (ratings) exceeds specified satisfaction goals (Farris,
Paul W et.al.2010). And yet another definition of customer satisfaction is it
refers to the extent to which customers are happy with the products and/or
services provided by a business. Further definition of customer satisfaction is
it is a term generally used to measure a customer’s perception of a company’s
products and/or services. It’s not a straight forward science however, as
customer satisfaction will vary from person to person, depending on a whole
host of variables which may be both psychological and physical. The usual
measures of customer satisfaction involve a survey with a set of statements
using a Likert Technique or scale (Westbrook, 1980).
Technology is making a tremendous impact upon banks
in general and the financial services sector is no exception. The application
of information and communication technology concepts, techniques, policies and
implementation strategies to banking services has become a subject of
fundamentals importance and concerns to all banks and indeed a prerequisite for
local and global competitiveness in banking industry. As a result of this
technological improvement business environment in financial sector is extremely
dynamic and experience rapid changes and demands banks to serve their customer through
the use of internet. The evolution of internet banking started from the use of Automatic
Teller Machine (ATM) and Finland is the first country in the world to have
taken a lead in internet banking (Mishra,R. and Kiranmai,2009). Internet
banking has been widely used in developed countries and in developing economies;
however, the spread of internet banking is much limited. Today, almost all
banks are adopting internet banking as a means of enhancing service quality of
banking services. They are providing internet banking to their customers to
satisfaction in banking service (Shittu, 2010). Customers in Nigeria are late
adopters of the Internet and its applications with regards to internet baking.
like machine out of order, machine out of cash, no printing statements, cards
get blocked, frequent breakdown of ATM service, unreliability of ATM service,
lack of sufficient technicians in all bank who solve breakdown of ATM machine,
lack of sufficient alternative system which substitute ATM service for the
customer when temporary problem happen in the machine, lack of convenience of internet-bank
service, lack of mobile banking service, lack of reliable Tele-banking , lack
of credit card service, under-development of technological infrastructure, low
level of relevant knowledge creation and innovation, interruption of network,
lack of suitable and regulatory frame work for e-commerce, resistance to
changes in technology among customers and service providers as result of fear
of risk, lack of fair distribution of internet banking service in all over Nigeria.
All these has created doubts in the minds of customers thereby affecting their
level of satisfaction.
1.2 STATEMENT OF THE PROBLEM
The introduction of internet banking in to the
banking sector is to bring customer satisfaction there by to enhance the banks‟
profitability. Unless this technology bring increase customer satisfaction than
the traditional brick and mortar branches customer may perceive as the same as
different branches rather than a new means of delivery channels. Daniel (1999)
and Mols (1998) described that compared to ordinary banking system; internet
banking is providing the competitive advantage by lowering the cost and
providing best satisfaction of customer needs. The old age people are generally
shy of use of ATM because of perceived risk of failure, complexity, security,
and lack of personalized service (Moutinho, 2000). Applegate (1996) also
described the benefit of internet banking from customer point of view;
convenient and valuable source to deal with funding because it provides
convenience to access account throughout the day that is access is not limited
to banking operation hours and available around the clock. This study is
analyzing the impact of internet banking on customer’s satisfaction.
1.3 OBJECTIVES OF THE STUDY
following are the objectives of this study:
examine the components of internet banking in Nigeria.
examine the impact of internet banking on customer’s satisfaction.
determine the factors limiting the use of internet banking by Nigerians.
1.4 RESEARCH QUESTIONS
are the components of internet banking in Nigeria?
is the impact of internet banking on customer’s satisfaction?
are the factors limiting the use of internet banking by Nigerians?
1.6 SIGNIFICANCE OF THE STUDY
following are the significance of the study:
of this study will be a useful guide for the managements of banks in Nigeria at
determining the impact of internet banking on customer satisfaction.
2. This research will also serve as a
resource base to other scholars and researchers interested in carrying out
further research in this field subsequently, if applied will go to an extent to
provide new explanation to the topic
1.7 SCOPE/LIMITATIONS OF THE STUDY
study on the impact of internet banking on customer satisfaction will cover all
the components of internet banking with a careful examination of its impact on
LIMITATION OF STUDY
Financial constraint– Insufficient fund tends to impede the
efficiency of the researcher in sourcing for the relevant materials, literature
or information and in the process of data collection (internet, questionnaire
Time constraint– The researcher will
simultaneously engage in this study with other academic work. This consequently
will cut down on the time devoted for the research work
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