IMPACT OF INTERNET BANKING ON CUSTOMER SATISFACTION
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IMPACT OF INTERNET BANKING ON CUSTOMER SATISFACTION
INTRODUCTION TO CHAPTER ONE OF THE IMPACT OF INTERNET BANKING ON CUSTOMER SATISFACTION
1.1 BACKGROUND OF THE STUDY
consumer satisfaction is a measure of how well a company’s products and services meet or exceed consumer expectations. Customer satisfaction can alternatively be described as “the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or services (ratings) exceeds specified satisfaction goals” (Farris, Paul W et al.2010).
Another meaning of customer satisfaction is the degree to which customers are satisfied with the products and/or services offered by a firm. Customer satisfaction is a word that is commonly used to measure a customer’s perception of a company’s products and/or services.
It’s not a simple science, though, because customer satisfaction varies from person to person, depending on a slew of psychological and physical factors. A survey comprising a series of statements utilising a Likert Technique or scale is typically used to assess customer satisfaction (Westbrook, 1980).
Technology is having a huge impact on banks in general, and the financial services sector is no different. The use of information and communication technology concepts, techniques, policies, and implementation strategies to banking services has become a primary concern for all banks,
as well as a requirement for local and global competitiveness in the banking business. As a result of technological advancements, the business environment in the financial industry is extremely dynamic and experiences frequent changes, necessitating banks’ usage of the internet to service their customers.
The evolution of internet banking began with the usage of ATMs, and Finland was the first country in the world to take the lead in internet banking (Mishra,R., and Kiranmai,2009).
Internet banking is widely employed in both developed and emerging nations; yet, the growth of internet banking is limited.
Almost all banks are now using internet banking to improve the quality of their financial services. They offer internet banking to their customers in order to increase customer satisfaction with banking services (Shittu, 2010). In terms of internet baking, customers in Nigeria are late adopters of the Internet and its applications.
However, there are issues such as machine out of order, machine out of cash, no printing statements, cards getting blocked, frequent breakdown of ATM service, unreliability of ATM service, a lack of sufficient technicians in all banks who solve breakdown of ATM machine,
a lack of sufficient alternative system which substitutes ATM service for the customer when a temporary problem occurs in the machine, a lack of convenience of internet-bank service, a lack of mobile banking service, and a lack of reliable All of this has raised questions in the minds of customers, lowering their level of contentment.
1.2 STATEMENT OF THE PROBLEM
The introduction of internet banking into the banking sector is intended to increase customer satisfaction and, as a result, the banks’ profitability. Unless this technology improves customer satisfaction over traditional brick and mortar branches, customers may perceive it as different branches rather than a new mode of delivery.
According to Daniel (1999) and Mols (1998), internet banking provides a competitive advantage by lowering costs and providing the best satisfaction of customer needs when compared to traditional banking systems.
Older people are generally hesitant to use ATMs due to the perceived risk of failure, complexity, security, and a lack of personalised service (Moutinho, 2000).
Applegate (1996) also described the benefit of internet banking from the perspective of the customer as a convenient and valuable source of funding because it allows customers to access their accounts at any time of day,
as access is not limited to banking operating hours and is available around the clock. This study investigates the effect of internet banking on customer satisfaction.
1.3 OBJECTIVES OF THE STUDY
The following are the study’s objectives:
1. To investigate the elements of internet banking in Nigeria.
2. To investigate the effect of internet banking on customer satisfaction.
3. To identify the factors limiting Nigerians’ use of internet banking.
1.4 RESEARCH QUESTIONS
1. What are the components of Nigerian internet banking?
2. What effect does internet banking have on customer satisfaction?
3. What factors are limiting Nigerians’ use of internet banking?
1.6 SIGNIFICANCE OF THE STUDY
The following are the study’s implications:
1. The findings of this study will be a useful guide for Nigerian bank management in determining the impact of internet banking on customer satisfaction.
2. This research will also serve as a resource base for other academics and researchers interested in conducting additional research in this sector in the future, and if utilised will go so far as to provide new explanations for the topic.
1.7 SCOPE AND LIMITATIONS OF STUDY
This research on the impact of internet banking on customer satisfaction will look at all aspects of internet banking and how they affect customer satisfaction.
STUDY LIMITATIONS
Financial constraint- A lack of funds tends to restrict the researcher’s efficiency in locating relevant materials, literature, or information, as well as in the data collection procedure (internet, questionnaire, and interview).
Time constraint- The researcher will conduct this investigation alongside other academic activities. This subsequently will cut down on the time dedicated for the research task
REFERENCES
E. Daniel (1999). Electronic banking services are provided in the United Kingdom and the Republic of Ireland. International Journal of Bank marketing. 17(2), 72-82
Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance.Upper Saddle River, New Jersey: Pearson Education, Inc
Mishra R. and J. Kiranamai. (2009). E-banking: A case of India. Icfai University, Journal of publication Administration.Vol.5, No.1, pp.55-65.
Mols, N.P. (1998). The behavioral consequence of PC banking. International Journal of bank marketing 16(5), pp.195-201.
Moutinho, L. and Smith, A.(2000). Modeling bank customer satisfaction through mediation of attitudes towards human and automated banking, International Journal of bank marketing,Vol.18 No.3,pp.124-134.
Shittu Olorunsegun. (2010).The consequences of electronic banking in Nigeria banking system
Robert A. Westbrook (1980). “A Rating Scale for Measuring Product/Service Satisfaction,” Journal of Marketing, pp.68-72
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