Customer relationship management in the banking sector: impact of internet usage by the customer

Banks in India have succeeded in promoting new services to its customers. The likelihood of current customers is tempted to do business online. Based on extant literature on bank marketing, a questionnaire was designed. Then, in a large-scale survey by means of personal and telephone interviews, data was obtained from bank customers. This paper focuses on the adoption of internet banking by existing banks customers through an investigation of the factors that influence customer's acceptance of internet banking service. The questionnaire was designed from the literature review. It included 29 variables which will help in enhancing the satisfaction of the customer with usage of internet banking in India. Six Indian banks were chosen where the questionnaire was randomly administered to 210 respondents who were also customers of the bank. Out of 210 questionnaires, 196 were completed questionnaires. The banks chosen for the purpose of the study were the ones who have strong retail presence and offer comprehensive range of information to the customer. An exploratory study of the Indian customers in six banks is conducted to identify the factors which lead to adoption of internet banking services with the help of data reduction technique called factor analysis.