Key Features:
No of Chapters: 5
No of Pages: 55
Introduction:
Customer satisfaction is a measure of how products and services supplied by a company meet or surpass customer expectations. Customer satisfaction is also defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products or its services (ratings) exceeds specified satisfaction goals (Farris, Paul W et.al.2010). And yet another definition of customer satisfaction is it refers to the extent to which customers are happy with the products and/or services provided by a business. Further definition of customer satisfaction is it is a term generally used to measure a customer's perception of a company's products and/or services. It's not a straightforward science, however, as customer satisfaction will vary from person to person, depending on a whole host of variables which may be both psychological and physical. The usual measures of customer satisfaction involve a survey with a set of statements using a Likert Technique or scale (Westbrook, 1980).
Technology is making a tremendous impact upon banks in general and the financial services sector is no exception. The application of information and communication technology concepts, techniques, policies, and implementation strategies to banking services has become a subject of fundamentals importance and concerns to all banks and indeed a prerequisite for local and global competitiveness in the banking industry. As a result of this technological improvement business environment in the financial sector is extremely dynamic and experiences rapid changes and demands banks to serve their customer through the use of the internet. The evolution of internet banking started from the use of Automatic Teller Machine (ATM) and Finland is the first country in the world to have taken a lead in internet banking (Mishra,R. and Kiranmai,2009). Internet banking has been widely used in developed countries and in developing economies; however, the spread of internet banking is much limited. Today, almost all banks are adopting internet banking as a means of enhancing service quality of banking services. They are providing internet banking to their customers to increase customers‟ satisfaction in banking service (Shittu, 2010). Customers in Nigeria are late adopters of the Internet and its applications with regards to internet baking.
However, issues like a machine out of order, machine out of cash, no printing statements, cards get blocked, frequent breakdown of ATM service, the unreliability of ATM service, lack of sufficient technicians in all bank who solve breakdown of ATM machine, lack of sufficient alternative system which substitute ATM service for the customer when the temporary problem happen in the machine, lack of convenience of internet-bank service, lack of mobile banking service, lack of reliable Tele-banking , lack of credit card service, under-development of technological infrastructure, low level of relevant knowledge creation and innovation, interruption of the network, lack of a suitable and regulatory framework for e-commerce, resistance to changes in technology among customers and service providers as a result of fear of risk, lack of fair distribution of internet banking service in all over Nigeria. All these have created doubts in the minds of customers thereby affecting their level of satisfaction.
1.2 STATEMENT OF THE PROBLEM
The introduction of internet banking into the banking sector is to bring customer satisfaction thereby enhancing the banks‟ profitability. Unless this technology brings increase customer satisfaction than the traditional brick and mortar branches customer may perceive as the same as different branches rather than a new means of delivery channels. Daniel (1999) and Mols (1998) described that compared to the ordinary banking system; internet banking is providing a competitive advantage by lowering the cost and providing the best satisfaction of customer needs. Old age people are generally shy of the use of ATM because of the perceived risk of failure, complexity, security, and lack of personalized service (Moutinho, 2000). Applegate (1996) also described the benefit of internet banking from a customer point of view; convenient and valuable source to deal with funding because it provides convenience to access accounts throughout the day that is accessible is not limited to banking operation hours and available around the clock. This study is analyzing the impact of internet banking on customer satisfaction.
1.3 OBJECTIVES OF THE STUDY
The following are the objectives of this study:
1. To examine the components of internet banking in Nigeria.
2. To examine the impact of internet banking on customer satisfaction.
3. To determine the factors limiting the use of internet banking by Nigerians.
1.4 RESEARCH QUESTIONS
1. What are the components of internet banking in Nigeria?
2. What is the impact of internet banking on customer’s satisfaction?
3. What are the factors limiting the use of internet banking by Nigerians?
1.6 SIGNIFICANCE OF THE STUDY
The following are the significance of the study:
1. Outcome of this study will be a useful guide for the management of banks in Nigeria in determining the impact of internet banking on customer satisfaction.
2. This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently if applied will go to an extent to provide new explanation to the topic
1.7 SCOPE/LIMITATIONS OF THE STUDY
This study on the impact of internet banking on customer satisfaction will cover all the components of internet banking with a careful examination of its impact on customer satisfaction.
LIMITATION OF STUDY
Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire, and interview).
Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted to the research work.
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