26 SERVICE QUALITY DIMENSIONS FOR E-BANKING SERVICES IN INDIA
Ms. Neha Verma
Research Scholar, Dr. B. R. Ambedkar University of Social Sciences, Mhow (MP) Abstract - The study concentrates on determining top three service quality dimensions for e-banking services. For that, Parasuraman (1988, 1991) service quality RATER model is used. Sample of 170 respondents are included in the study using a self-structure questionnaire based on RATER model parameters. The top three service quality dimensions are found as- Reliability, Responsiveness and Assurance. These parameters play crucial role in defining and designing service quality and delivery. In e-banking services these three parameters play significant role in attracting, retaining and satisfying customers. For ensuring desirable service quality banking firms needs to focus on these parameters. The factors are determined through factor analysis using „principle component analysis‟ method in SPSS20.
Keywords: RATER model, Service Quality, E-banking Services.
1 INTRODUCTION 1.1 Background
Online banking services are out reaching its boundaries with utmost customer care and support. Indian banking industry is a great example of it, which implemented all technical systems to deliver high end customer services to ensure satisfaction (Levesque & McDougall, 1996). Service industry faces some exclusive challenges which otherwise not present with manufactured goods. The inherent attributes of services like- intangibility, inseparability, non-storability, reliability etc. make it more challenging (Avkiran, 1999). Online banking services are subjected to technical knowhow, infrastructure and equipment required to avail it. And, these contributes to the building of perceived image for related services (Kant & Jaiswal, 2017). For favorable brand image creation and higher customer satisfaction focusing on important determinants of service quality become mandatory. Higher the service quality, higher the customer satisfaction this has proven by many authors in their studies (Newman, 2001).
1.2 Service Quality
The easiest way to measure service quality is „measure the difference between expectations and actual performance‟. The quality evaluation of services is always very tough and challenging, but it‟s very easy for customers to evaluate. Any obstacle or problem in availing services causes poor quality and bad customer experience (Cronin & Taylor, 1992). It varies from customer-to-customer,
product-to-product and place-to-place.
Authors defined it as a comprehensive evaluation mechanism that a customer adopt to measure service quality. Service quality is defined as- bunch of benefits that a customer look into the service and experience the same. It is about delivering promises through experts (Al-Jazzazi&
Sultan, 2017). Service quality includes three important things viz. qualities &
popularity of service provider, overall service environment and service consistency, if these three parameters are controlled and defined most probably the customer would have better service experience. The difference between expected and received would be quite less which would encourage him to be satisfied and happy (Ramya, Kowsalya &
Dharanipriya, 2019).
1.3 Service Quality Dimensions
Parasuraman, et al. (1991) suggested a five dimensions model to evaluate the level of service quality which basically includes- Reliability, Assurance, Tangibility, Empathy & Responsiveness.
The success of a service product depends upon these parameters, if these are well taken into consideration then the firm can enjoy higher satisfaction, if not, than can lose customers. The perceived expectations from a service product leads to higher desire and over specification of the product which many of the times many not get fulfilled. There would be significant different between perceived expectation and actual performance of the
27 service (Czaplewski, et al. 2002). For
better understanding a pictorial form of these parameters is being presented-
Fig. 1 Service Quality Parameters R Reliability
A Assurance
T Tangibility
E Empathy
R Responsiveness
Source: RATER Model by Parasuraman et al.
2 LITERATURE REVIEW
Mualla (2011) explained the sales culture of the banks and how does it put impact on service quality. The study revealed that, the service quality perception of customers influence from the overall working culture of the bank and employees‟ support in sorting and delivering required services. In many cases one potential quality gap is very common like- gap between service delivery and service communication. The organization culture influence the service delivery and if it is not found according to the communication then dissatisfaction arises.
Braciníková, & Matušínská (2017) suggested that, service marketing mix is a crucial determinant of customer satisfaction and service quality.
Customers have their own perceived mix and ready to pay for it, if a firm vary from that level then dissatisfaction arises. The selection of 7 Ps for effective positioning is important. A brand can achieve competitive edge only when it workout upon its mix. Similarly, in e-banking services strategic implementation of service mix is required.
Zafar et al. (2011) established direct relationship between e-banking service quality and customer satisfaction.
Banking in developing nations are always challenging due to low literacy level and
technological bottleneck. Even after the implementation of sound technical platform adoption and diffusion of e- banking services is scrolling slowly.
Hence, the service quality needs to be upgraded including safety, speed and accuracy in financial transactions.
Gao & Owolabi (2008) in their findings stated that, consumer adoption process for e-banking services in developing economies depends upon various quality factors. Primarily, these factors include system related factors, facility related factors, after sales related factors, type of services offered related factors. Consumer adoption is one of the prominent determinants of success of e- banking services. At last, various service quality parameters are recommended and advisable for better consumer acceptance and satisfaction.
Nupur (2010) supported the studies conducted on service quality management for e-banking services and added that, banks must work upon service executives, bank personals and features of online services in order to convince customers for usage and be a regular consumers. High service quality helps in retaining customers with full satisfaction.
2.1 Objectives of the Study
The current research focuses on e- banking service quality dimension most functional and valuable in India. Based upon that following specific objectives have been decided-
1. Determine the top three service quality dimensions for e-banking services in India using RATER model.
2. Rank the service quality dimensions based on customers‟
demographic profile like- Gender, Occupation and Age.
3 RESEARCH METHOD
A descriptive research design is used in this study to determine the potential service quality dimension for e-banking services using survey technique.Some of 175 respondents are covered and given a questionnaire asking their opinion on e- banking services and facilities. Elements of RATER model are used in the questionnaire to estimate the current level
28 of service quality in e-banking services.
Further, factor analysis is conducted to calculate the load of each variables in the scale and determine the potential factors contributing significantly to the customers‟ expected service quality.
Graphs and descriptive tables are used to display results.
4 ANALYSIS
RATER model consists five dimensions of good service quality and ranking of these dimensions vary product to product. The current study needs to identify top three dimensions from this model which are essentially required to define a good service quality for e-banking services. The below table 1 shows the variables and factor load calculate through factor analysis using varimax rotation method.
Table 1- Descriptive Statistics of Factors (RATER Model) Service Quality Dimensions
RATER Model of ‘Parasuraman, 1988’
Eigen Value
Avg. Factor Load Reliability
Timely Service Delivery 1.38
1.66
Service Consistency 1.90
Service Regularity 1.56
Service Accuracy 1.82
Assurance
Service Competency 1.23
1.20
Service Relevancy 1.16
Service Elegancy 1.42
Service Credibility 1.01
Tangibility
Physical Facilities Available 1.01
1.04 Tools & Equipment Availability 1.04
Technology Present 1.11
Efficient Workforce 1.00
Empathy
Service Accessibility 1.03
1.18
Prompt Communication 1.04
Empathetic Behavior 1.27
Individualized Attention 1.39
Responsiveness
Willingness to Help 1.78
1.35
Attention to Request 1.01
Request Processing Time 1.22
Flexibility 1.42
29 4.1 Analysis of First Research
Objective
1. Determine the top three service quality dimensions for e-banking services in India using RATER model.
According to the analysis (refer table 1) out of five service quality
dimensions the top three dimensions for e-banking services are identified as Reliability (1.66), Responsiveness (1.35) &
Assurance (1.20). The below graph 2 representing the analyzed value (avg.
factor load) for better understanding- Graph 2- Graphical Presentation of Service Quality Dimension (RATER Model)
4.2 Top Three Service Quality Dimensions for E-banking Services
Table 3- Tope Three Service Quality Parameters for E-banking Services Most Essential Service Quality
Dimensions for E-banking Services in India
Eigen Value
Avg. Factor Load
Reliability
Timely Service Delivery 1.38
1.66
Service Consistency 1.90
Service Regularity 1.56
Service Accuracy 1.82
Assurance
Service Competency 1.23
1.20
Service Relevancy 1.16
Service Elegancy 1.42
Service Credibility 1.01
Responsiveness
Willingness to Help 1.78
1.35
Attention to Request 1.01
Request Processing Time 1.22
Flexibility 1.42
0 0.5 1 1.5 2
1.66
1.205
1.04 1.18 1.35
Axis Title
Reliability Assurance Tangibility Empathy Responsivene ss
Parameters 1.66 1.205 1.04 1.18 1.35
Avg. Factor Load of Service Quality Parameters
30 First- Reliability (1.66): Reliability is the
highest scored parameter as per the respondents. It includes variables like- timely service delivery, service consistency, service regularity & service accuracy. In banking transactions reliable services are always required which must provide customers accuracy, consistency and timely delivery. For e-banking service quality „reliability‟ is crucial which ensure customer acceptance and usability.
Second- Responsiveness (1.35):It is the second highest quality dimension which is essential for desired e-banking services. It includes willingness to help, attention to request, request processing time and flexibility. In case where online transaction get stuck or incomplete then how much time the bank takes to process request shows the quality of the service. It is suggested that, response time to customer should always be lesser to show
system‟s potential. Hence, along with
„reliability‟, „responsiveness‟ should be prompt.
Third- Assurance (1.20):This is the third crucial parameter which is required for efficient service quality in banking sector.
The primary elements of this factor are- service competency, service relevancy, service elegancy and service credibility.
Assurance play significant role in promoting the banking services and convince customers to use them. If a banking ensures accurate, timely and secured financial transactions then only customers would accept the services.
4.3 Analysis of Second Research Objective
2. Rank the service quality dimensions based on customers‟
demographic profile like- Gender, Occupation and Age.
Table 4- Customers’ Preference of Service Quality Dimensions (Gender Basis)
Category Rank Avg. Score
Gender
Male
Reliability Responsiveness
Tangibility Assurance Empathy
4.78 4.36 4.09 3.76 3.45 Female
Assurance Tangibility Reliability Empathy Responsiveness
4.61 4.20 4.05 3.89 3.68
Demographic profile put significant impact on the preference of customers towards service quality of e-banking services. The result shows that, „gender‟ has create significant difference in the choice of service quality parameters selection. For „male‟, Reliability (4.78), Responsiveness (4.36) & Tangibility (4.09) are the top three parameters. Whereas, „female‟
differ in this selection and for them Assurance (4.61), Tangibility (4.20) and Reliability (4.05) are essential parameters which describes service quality of e-banking services.
Table 5- Customers’ Preference of Service Quality Dimensions (Occupation Basis)
Category Rank Avg. Score
Occupation
Salaried
Reliability Empathy Tangibility Responsiveness
Assurance
3.95 3.88 3.74 3.15 3.09 Businessmen
Reliability Assurance Tangibility Empathy Responsiveness
4.58 4.23 4.15 3.79 3.66
31 In occupation category, the study taken two broad category viz. „salaried & businessmen‟.
According to the analysis both the groups differ in their perception towards the essential of service quality of e-banking services. For „Salaried‟ respondents, the top three crucial quality dimensions for e-banking services are- Reliability (3.95), Empathy (3.88) &
Tangibility (3.74). Whereas, for „Businessmen‟, Reliability (4.58), Assurance (4.23) &
Tangibility (4.15) are crucial.
Table 6- Customers’ Preference of Service Quality Dimensions (Age Basis)
Category Rank Avg. Score
Age
20-30 Yrs.
Reliability Tangibility Assurance
Empathy Responsiveness
4.80 4.79 4.61 4.45 4.32 30-40 Yrs.
Reliability Assurance Responsiveness
Empathy Tangibility
4.39 4.18 4.07 3.82 3.77 40-50 Yrs.
Assurance Responsiveness
Reliability Empathy Tangibility
4.61 4.52 4.16 3.84 3.70 From the perspective of different age
group respondents, the service quality dimensions differ significantly.
20-30 yrs. – for them Reliability (4.80), Tangibility (4.79) & Assurance (4.61) are the top three important elements of services. These variables play crucial role in designing and defining service quality for e-banking services.
30-40 yrs. – for this category the top three essential dimensions are- Reliability (4.39), Assurance (4.18) &
Responsiveness (4.07). The respondents believe that these are the important constructs of service quality for e-banking services.
40-50 yrs. – for them, Assurance (4.61), Responsiveness (4.52) & Reliability (4.16) are necessary parameters that define service quality for e-banking services.
The responses based on various demographic profiles differ due to various internal as well as external factors.
Respondents‟ attitude and approach towards availing any service are highly influenced by factors like- self-efficacy, technical knowhow, usage regularity, facilities available, financial capacity, personal requirements and so on. Hence, this cannot be claim that these rankings based on selected demographic factors are universal and implied to entire
community. But, this can reflect a trend of the market and people‟s perception towards the required elements of service quality for e-banking services in India.
5 CONCLUSION
Service quality dimensions or parameters changes frequently based on nature product, type of customers, type of industry etc. With respect to e-banking services, some quality parameters are really important and play very prominent role. In this, use of Parasuraman service quality model is always being used. The current study too used RATER model of service quality to determine peoples‟
perception and their choice towards the selection and usage of e-banking service.
The study found that, all five parameters of RATER model are crucial and play significant role in defining service quality.
The top three parameters are identified as- Reliability, Responsiveness &
Assurance. Hence, the study suggest that, banks must concentrate on these parameters to attract customers and create confidence to use it.
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