Investigation of most significant factors to improve customer satisfaction of Internet banking service of National Savings Bank

Abstract

Current competitive business environment in the world has make it challenging to the whole banking industry. Similarly, due to globalisation, NSB bank is facing serious threats and weaknesses associated with retaining customer interest when it comes to internet banking services which will destroy its competitive position very soon. Banks can be considered as organisations who provide services. For a service provider, it’s very important to measure and maintain the satisfaction of its customers to withstand in the current competition. Significantly, customer satisfaction is a vital metric for all business entities today who are looking to be successful even in a highly competitive business world, as it enhances profits and market share of the companies while helping to retain existing customers and attract more customers. When it comes to customer satisfaction, the service quality is also identified as a highly associated dimension. Therefore, the researcher is trying to measure how well the service quality is associated with customer satisfaction of NSB internet banking, and thereafter to measure the customer satisfaction using the dimensions of service quality. After a thorough exercise on the existing literature, it is identified that the SERVPERF model which uses to measure the service quality is the best option to validate the customer satisfaction of NSB internet banking. The SERVPERF model is containing 5 dimensions as Assurance, Empathy, Reliability, Responsiveness and Tangibility. Treating this model as the base, the researcher has developed a questionnaire which contains five-point Likert scale to measure those five dimensions. The questionnaire was shared among 387 customers of NSB bank who are using its internet banking services. To analyse the data, the researcher has used descriptive statistics, multiple regression analysis and Pearson’s correlation analysis. The analysis has concluded that the customer satisfaction of NSB internet banking has positive correlation with the 5 dimensions in the SERVPERF model, as depicted during the literature survey. Further, it’s found that Tangibility dimension has highly significant and unique contribution to the customer satisfaction. After Tangibility, the Reliability, Assurance and Empathy dimensions have shown the contribution to customer satisfaction. But it is identified the Responsiveness dimension is not significantly contribute to the customer satisfaction. Based on the conclusion, the researcher has provided the areas to give high priority and low priority to improve the customer satisfaction of the NSB internet banking