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TABLE OF CONTENT
- CHAPTER 1INTRODUCTION TO RESEARCH PROBLEM ........
- 1.1 RATIONAL OF STUDY…………………………..
- 1.2 LITERATURE REVIEW…………………………..
- 1.3 OBJECTIVE OF THE STUDY…………………….
- 1.4 RESEARCH METHODOLOGY…………………...
- 2.1 ANALYSIS………………………………………... CHPATER 2: DATA ANALYSIS AND INTERPRETATION
- CHAPTER 3: CONCLUSION AND RECOMMENDATION…….
- CHAPTER4: LIMITATION……………………………………….
- CHAPTER5: BIBLOGRAPHY…………………………………...
- CHAPTER6: QUESTIONNAIRE………………..………………..
- TABLE1…………………………………………………….. TABLES PAGE NO.
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- FIGURE1……………………………………………………. FIGURE
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products and services offered by different banks vary widely both in their content and sophistication. India’s banking sector is growing at a fast pace. India has become one of the most preferred banking destinations in the world. The reasons are numerous: the economy is growing at a rate of 8%, Bank credit is growing at 30% per annum and there is an ever- expanding middle class of between 250 and 300 million people (larger than the population of the US) in need of financial services. All this enables double-digit returns on most asset classes which is not so in a majority of other countries. Foreign banks in India achieving a return on assets (ROA) of 3%, their keen interest in expanding their businesses is understandable – even more so when compared with the measly 1% average ROA for the Top 1000 banks in the world. From the perspective of banking products and services being offered through Internet, Internet banking is nothing more than traditional banking services delivered through an electronic communication backbone, viz, Internet. But, in the process it has thrown open issues which have ramifications beyond what a new delivery channel would normally envisage and, hence, has compelled regulators world over to take note of this emerging channel. Some of the distinctive features of i-banking are:
- It removes the traditional geographical barriers as it could reach out to customers of different countries / legal jurisdiction. This has raised the question of jurisdiction of law / supervisory system to which such transactions should be subjected,
- It has added a new dimension to different kinds of risks traditionally associated with banking, heightening some of them and throwing new risk control challenges,
- Security of banking transactions, validity of electronic contract, customers’ privacy, etc., which have all along been concerns of both bankers and supervisors have assumed different dimensions given that Internet is a public domain, not subject to control by any single authority or group of users,
- It poses a strategic risk of loss of business to those banks who do not respond in time, to this new technology, being the efficient and cost effective delivery mechanism of banking services.
- A new form of competition has emerged both from the existing players and new players of the market who are not strictly banks. Why this research: An analysis of the differences in risk perceptions between bank customers using Internet Banking and those not using Internet Banking was done and it showed that risk perceptions in terms of financial, psychological and safety risks among customer not using the internet was more meaningful than those using internet banking. Customers not preferring to use internet banking thought that they would be swindled when using this service, and therefore, are particularly careful about high risk expectation during money transfers from and between accounts. Only 37% of Indian Internet users come from Top 10 cities i.e. Mumbai, Bangalore, Delhi, Calcutta, Chennai, Pune, Hyderabad, Ahmedabad, Surat and Nagpur. As per IAMAI and I-cube, the number of active Internet user (i.e. ones who logon to Internet atleast once a month) is now 32 million and numbers who have used Internet atleast once stands at 46 million. Maximum of the person who are going on for internet banking lies in the age bracket of 26-35. but the rise in the age the level of users become low. Approximately 17% of female use internet banking. This a matter of concern for a banks what are the causes why this is happening. Although many major banks have started offering i-banking services, the slow pace will continue until the critical mass is achieved for PC, internet connections and telephones. However, the upsurge of IT professionals with growing demands is pressuring the government and bureaucracy in the country to support and develop new initiatives for a faster spread of i-banking. But then to there is a fear in mind of customer using internet as a medium for the banking transaction. Private and foreign banks are trying to turn more and more customer towards the usage if internet for the banking transaction. This study is basically to know the relation of various independent variables on the customer usage of internet for banking. The remarkable development of the Internet has drastically expanded the shopping space for a number of consumers. According to a Fast Company survey, Internet buyers as a percentage of all Internet users grew from just 19 percent in 2001 to 71 percent in 2010. Not only has Internet shopping created a new marketing provider that meets consumer needs and wants, but it has changed the consumer shopping culture with "click" shopping
RATIONAL OF STUDY
Risk perception and consumer stress are two important factors that firms have to take into consideration since they are important parts of consumer behavior. Although risk perception concept has been analyzed in various studies, consumer stress and relationships between risk perception and consumer stress have not been researched in marketing literature. To illuminate the issue, present study scrutinizes consumer risk perception, stress and relationships between these two terms. To reach this target, initial data were collected by survey forms which are designed to measure risk perception and stress level of banking consumers. Moreover collected data were analyzed by statistical methods namely correlation analysis and t-tests. As a result, time risk perception, physical risk perception and psychological risk perception determined as factors which increase consumer stress meaningfully in banking sector
LITERATURE REVIEW
In India still there is lack of users for internet as a medium for banking purpose, but the banking system are upgrading and bringing many electronic banking medium for customers so that banking can be made more convenient.
Joseph et al. (1999) investigated the influence of internet on the delivery of banking
services. They found six underlying dimensions of e-banking service quality such as convenience and accuracy, feedback and complaint management, efficiency, queue
management, accessibility and customization. Jun and Cai (2001) identified 17 service
quality dimensions of i-banking service quality. These are reliability, responsiveness, competence, courtesy, credibility, access, communication, understanding the customer, collaboration, continuous improvement, content, accuracy, ease of use, timeliness, aesthetics, security and divers features. They also suggested that some dimensions such as responsiveness, reliability and access are critical for both traditional and internet
banks. Jayawardhena (2004) transforms the original SERVQUAL scale to the internet
context and develops a battery of 21 items to assess service quality in e-banking. From the provider perspective, there are target quality and delivered quality. The focus of process- or supply-led quality definition is rather internal than external, and it is defined as conformance to requirements. It lays emphasis on the importance of the management and the supply-side quality, and there is an important role of the process in determining
the quality of outcome (Ghobadian, 1994). Achieving the quality of conformance
between the planned (target) quality level and the real quality delivered to customers depends on the service quality management system in an organization.
IAMAI report on online banking 2006. 43% of online banking user haven’t started
online financial transaction because of security reasons, 39% haven’t started because they prefer face to face, 22% haven’t started because they don’t know how to use, for 10% sites are not user friendly and for 2% banks are not providing the facility of internet
based on relatively standardized outcomes determined by online systems, customer attitudes toward that outcome reflect overall quality of services delivered Customers usually perceive risks in conducting transactions electronically and particularly if the transactions involve money. Risk perception can be of six different types: time risk, finacial risk, performance risk, psychological risk and safety/confidentiality risk. It is generally considered that risk perception could be higher for electronic banking services. This study aims to understand extent to which whether this is consideration is valid as well as to determine the levels of risk perception differences among those using Internet Banking and those not using it.
RESEARCH OBJECTIVE
Findings indicate that missing information can affect buyers' tastes and purchase decisions made subsequently. Perhaps the findings of the current project might offer greater insight (e.g., correlation between consumer perceptions and pre-purchase information) to e-marketers and e-marketing researchers about the role of pre-purchase information in management and e-commerce. (1) To Uncertainty as to buying goals. (2) To several purchases (product, brand, model, etc.) best matches the buying goals. (3) To Possible adverse consequences if the purchase is made (or not made).
RESEARCH METHODOLOGY
Alternative Hypothesis (H1): there is a positive impact of risk perception. SAMPLING We have used convenience sampling technique. It is also called haphazard or accidental sampling. Members of the population are chosen based on their relative ease of access. To sample friends, co-workers, or shoppers at a single mall, are all examples of convenience sampling. Sometimes called grab or opportunity sampling, this is the method of choosing items arbitrarily and in an unstructured manner from the frame. Though almost impossible to treat rigorously, it is the method most commonly employed in many practical situations. Sample Unit: NCR Internet Users (for banks) Sample Technique: C onvenient sampling Sample Area: NCR Sample Size: 150 TOOLS Statistical : SPSS Techniques : MDS and Multiple Regression
DATA ANALYSIS AND INTERPRETATION
Q1) Are you user of internet? age own a internet don’t have internet 18-25 27 3 26-35 51 1 36-45 20 2 46-60 8 4 61-+ 1 3 Table 1 Figure
Interpretation-
From the above interpretation we can say that age group between 18-25 own
a internet of 27%while % who don’t own an internet is 3%, similarly %
between 26-35 own an internet of 51% while 1 %don’t own internet, 36-
own an internet of 20% while 2%don’t own, 46-60 own 8%internet while
4% don’t own, 61and above own 1 %internet, 3%don’t own. Finally we can
see that age group 26-35 own maximum % of internet.
From the above interpretation we can say that all the younger have been
using internet since last one year but age group between 36-45, 46-60and 61
and above have started using internet in recent. finally we can the age
group between 26-35 are the maximum users of the internet.
Q3) Frequency of visiting your bank branch per month? a) Less than 1 b) 1 to 3 times c) 3 to 8 times d) 8 to 12 times e) over 12 times Age <1 1 to 3 3to8 8to12 12+ 18-25 11 14 10 3 2 26-35 4 1 3 8 26 36-45 2 3 2 4 5 46-60 4 8 2 2 1 61-+ 5 0 0 0 1 Table
Figure
Interpretation
From the above inerpretation we can say that in comparison to all the above
age groups maximum no. of time that is being visited to the bank is of age
group between 26-35 that’s is around 12 times in a month.
Q4) the main reason that you typically visit your bank branch (please choose the single most important reason)? a) to make a deposit b) to get advice for investment options c) to inquire about a balance d) to withdraw cash e) other age deposit Advice balance withdrawal Others
• ATM
- Online banking
- Telephone banking
- Mobile banking
- SMS banking age Atm online telephone Mobile Sms 18-25 20 21 12 15 25 26-35 10 29 14 18 30 36-45 2 16 2 15 12 46-60 14 25 2 2 14 61-+ 5 2 2 2 5 Table 5 Figure
Interpretation
From the above itnerpretation we can say that all the above age gropus says
that the mostly all the facilites is provided by their banks wheteher it be atm
online, telephone , mobile expcept to the person who belong to the age
group of 61 and above.
Q6) what banking services do you use which your Internet bank offers? (Please check all you are currently using)
- Seeking product and rate information
- Calculate loan payment information
- Download loan applications
- Download personal bank transaction activity.
- Check balances on-line
- Apply for consumer loans or credit cards online
- Inter-account transfers
- On-line bill payments
- Table 6
