MEASURING CUSTOMER PERCEPTION AND SATISFACTION IN INTERNET BANKING, SCALE DEVELOPMENT AND VALIDATION

Application of technology in various service sectors is providing convenience in product delivery, access, increased productivity and performance. Public sector banks in India have implemented Internet banking so that their customers can avail retail banking services anytime and anywhere. However, it is also necessary for the service providers to know what customers perceive about their services. In this research paper a scale has been developed to measure perceived service of Internet banking. Further it has been judged whether perceived service is affecting customer satisfaction. Data from 499 customers of 5 leading public sector banks have been collected and analysed. Privacy has been found to be the most important factor in determining how customers will perceive the Internet banking service. Customers have shown a high preference for timely availability of the banking website also. Interestingly, customer satisfaction has been found to be affected by perceived services positively and significantly. The study identifies the areas where banking service providers should focus on to have more satisfied customers and to attract more customers towards Internet banking.