Development of an Instrument to Measure Internet Banking Service Quality in India

This paper attempts to develop a reliable and valid instrument of measuring Internet banking service quality in India, and also analyses the impact of Internet banking service quality dimensions on the Overall Internet Banking Service Quality and customer satisfaction. Given the exploratory nature of this research, extant literature survey, focus group discussion and expert interviews were used to develop a battery of Internet banking service quality items. A sample of 1350 Internet banking customers of private sector, public sector and foreign banks was surveyed in the Delhi Metropolitan Area. Results of exploratory factor analysis (EFA) revealed five dimensions— Security/Privacy, Reliability, Efficiency, Responsiveness, and Site Aesthetics. This five dimensional model arrived through EFA was validated through a confirmatory factor analysis (CFA). The proposed research model shows acceptable fit indices. Impact of these dimensions on the Overall Internet Banking Service Quality and customer satisfaction are analysed using multiple regression technique. Findings indicate that all dimensions carry significant impact on the Overall Internet Banking Service Quality perceptions and customer satisfaction. However, Security/Privacy and Efficiency dimensions carry the maximum impact on the Overall Internet Banking Service Quality and satisfaction respectively.