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Editorial Board A Refereed Monthly International Journal of Management
Prof. B. P. Sharma
(Editor in Chief)
Prof. Mahima Birla
(Additional Editor in Chief)
Dr. Khushbu Agarwal
(Editor)
Ms. Asha Galundia
(Circulation Manager)

 Editorial Team

Dr. Devendra Shrimali
Dr. Dharmesh Motwani
 

A Multiple Comparison of E-banking Quality Dimensions using Tukey’s Post Hoc test – A Study on Selected Banks

 

 

  1. Deepjyoti Choudhury,

Assistant Professor, Department of Business Administration, Assam University, Silchar

  1. Dibyojyoti Bhattacharjee,

 Professor, Department of Statistics, Assam University, Silchar

Abstract

 

The study attempts to investigate and compare the selected banks on Electronic Banking Quality attributes. Later the study prepares an index based on the performance of banks. A sample of 400 respondents were collected from the districts of Southern Assam, India based on post stratified random sampling. Descriptive statistics were used to measure the performance mean scores. For developing the overall performance index simple arithmetic calculations were conducted. Later to find out whether the means obtained are significantly different, one way ANOVA have been calculated and further investigation is done with the help of Tukey’s Post Hoc Test. The results revealed that there is a significant difference of performances of the selected banks on different quality attributes. As a result indexing of the banks based on performance was possible. An overall performance index has been computed to find the overall position of the banks under study based on the quality dimensions .The index obtained is very helpful in identifying the position or overall status of E-banking service of a particular bank under study. From the mean scores obtained the banking organizations can identify and measure the difference in scores from the top position and differences of scores with its competitors.

 

Key words: E-banking, Performance, Index, Qualitative Dimensions, Post Hoc Test

                                                                              

  1. Introduction

In the context of banking, the distribution channel is known as delivery channel. According to (Kotler & Armstong, 1999), a distribution channel is a set of interdependent organizations (intermediaries) involved in the process of making a product or service available for use or consumption by the consumer or business user.

Electronic banking is a bigger platform than just banking via the Internet (Nasri, 2011). The definition of Electronic Banking varied from time to time. (Nitsure, 2003) defined Electronic Banking as provision of banking products and services through electronic delivery channels. E-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels (Salehi, 2010) . The different types of E-banking are internet banking, mobile banking, debit card, credit card, telephone banking, TV based banking etc.

  1. Concept of performance based on quality dimensions

 

Based on the conceptualization of E- Banking quality dimensions derived from literature review, the closely related parameters are grouped together into four dimensions i.e. E-banking Channel Design, Reliability, Responsiveness and Security.

Table 1: Electronic Banking Services Performance Dimensions

Dimensions

Closely related dimensions

Reference

E-banking channel Design

Website interactivity, Website in- formativeness, website ease of use, Navigation structure ,Information content, richness, Graphic style, website usability, Website aesthetics

(Gupta & Bansal, 2012), (Molapo, 2008), (Costas, Vasiliki, & Dimitrious) , (Swaid & Wigand, 2009), (Jun & Cai, 2001), (Montoya-Weiss, Voss, & Grewal, Fall 2003), (Yang, Jun, & Peterson, 2004), (Rahman, Cripps, Salo, Hussain, & Zaheer, 2013), (Barnes & Vidgen, 2002) , (Lee & Lin, 2005) , (Wolfinbarger & Gilly, 2003).

Reliability

Security, Privacy, Trust, Accuracy

(Wolfinbarger & Gilly, 2003), (Lee & Lin, 2005), (Barnes & Vidgen, 2002) , (Rahman, Cripps, Salo, Hussain, & Zaheer, 2013), (Yang, Jun, & Peterson, 2004) , (Woldie, Hinson, Iddrisu, & Boateng, 2008), (Jun & Cai, 2001), (Bauer, Hammerschmidt, & Falk, 2005), (Swaid & Wigand, 2009), (Gupta & Bansal, 2012)

Responsiveness

Timeliness, Queue management

(Lee & Lin, 2005), (Yang, Jun, & Peterson, 2004), (Woldie, Hinson, Iddrisu, & Boateng, 2008), (Jun & Cai, 2001), (Joseph, McClure, & Joseph, 1999), (Bauer, Hammerschmidt, & Falk, 2005), (Swaid & Wigand, 2009), (Molapo, 2008), (Gupta & Bansal, 2012)

Service

Site contact, transaction support, Feedback/compliant

Management

(Wolfinbarger & Gilly, 2003), (Rahman, Cripps, Salo, Hussain, & Zaheer, 2013), (Molapo, 2008), (Bauer, Hammerschmidt, & Falk, 2005), (Joseph, McClure, & Joseph, 1999)

 

  1. Objective of the study

The objective of the current study is to measure the performance of banks in different dimensions, develop an overall performance index and conduct multiple comparisons from the responses of E-banking users specifically the salaried employees.

  1. Methodology

Here in this paper performance is measured under quality dimensions stated above. Descriptive statistics were used to measure the performance mean scores. For developing the overall performance index simple arithmetic calculations were conducted in excel. Later to find out whether the means obtained are significantly different, one way ANOVA have been calculated to test the difference of means.

Since ANOVA can only tell whether groups in the sample differ, it cannot tell which groups differ, hence to further investigate which pair of groups in the sample are differing, TUKEYS PostHoc Test is conducted. Tukey's method (also known as Tukey's honestly significant difference) is commonly used to determine the minimum difference between means of any two groups before they can be considered significantly different[i].

  1. Tools used

A survey was conducted keeping in mind the study area i.e. Cachar, Hailakandi and Karimganj districts of Assam, India. The top eleven banks were selected based on their presence in the surveyed area. Considering an error of 5 %, sample of 400 units were taken into study based on post stratified random sampling. The sample consists of persons who are salaried employees at the same time E-banking users of their respective banks. The number of respondents collected from each bank was based on proportional allocation that they contribute in the total population.

Table 2:  Bank wise sample size collected

                                    

Slno.

Name of bank

Total no of Customers(Population) as on 2014

 

Sample collected out of 400

1

STATE BANK OF INDIA

399206

246

2

ICICI BANK LTD

7800

5

3

AXIS BANK LTD

20000

12

4

HDFC BANK LTD.

7374

5

5

UNION BANK OF INDIA

67239

41

6

BANK OF BARODA

16429

10

7

CANARA BANK

25688

16

8

VIJAYA BANK

14500

9

9

UCO BANK

54593

34

10

INDUSIND BANK LTD

3000

2

11

PUNJAB NATIONAL BANK

32843

20

 

Total

648672

400

  1. Analysis and Results

This section deals with the analysis and results about performance obtained from responses.

 

7.1 Reliability tests

Reliability tests were conducted to ensure the validity and precision of the statistical analysis and accordingly Cronbach’s Alpha(α) for the main dimensions were calculated as below:

Table 3: Reliability Statistics of the dimensions

No.

Constructs

No of Items

Coefficient

 

1

E-Banking Channel design

6

0.850

2

Reliability

5

0.801

3

Responsiveness

4

0.816

4

Service

4

0.834

 

Overall

19

0.891

 

7.2 Performance of banks based on responses

 

The following tables have been obtained by calculating the mean of the responses separately for each bank under consideration for the four individual dimensions. Hence for different dimensions we had different mean scores of different banks under study.

 

Table 4: Performance on E- Banking Channel Design

BANK

E Banking Channel Design(Mean Scores)

SBI

5.927

ICICI

6.067

AXIS

6.556

HDFC

5.767

UNION

5.959

BOB

6.167

CANARA

5.719

VIAJAYA

5.870

UCO

5.549

INDUSIND

5.500

PNB

5.750

Table 5: Performance on Reliability

BANK

Reliability (Mean Scores)

SBI

5.928

ICICI

5.840

AXIS

6.383

HDFC

5.600

UNION

5.863

BOB

6.220

CANARA

4.988

VIAJAYA

5.356

UCO

5.735

INDUSIND

6.200

PNB

5.923

 

Table 6: Performance on Responsiveness

BANK

Responsiveness (Mean Scores)

SBI

5.933

ICICI

6.300

AXIS

6.292

HDFC

5.650

UNION

6.012

BOB

6.225

CANARA

5.969

VIAJAYA

5.472

UCO

5.507

INDUSIND

6.000

PNB

5.438

 

                                         Table 7: Performance on Service

BANK

Service (Mean Scores)

SBI

5.821

ICICI

5.650

AXIS

6.229

HDFC

5.050

UNION

4.927

BOB

5.525

CANARA

5.406

VIAJAYA

5.083

UCO

5.522

INDUSIND

4.875

PNB

4.900

 

 

 

[i] http://www.statstodo.com/Posthoc_Exp.php

Table 8: Overall Performance Index


The overall performance index Table 8: suggests that as per the overall ranking of performance is concerned, AXIS bank tops the list with score 6.365 out of 7, which is followed by Bank of Baroda with score 6.034. In the third position is ICICI bank with SBI in fourth position. At the bottom we have Punjab National Bank.

Now we need to find out whether the means obtained are significantly different. Thus we use one way ANOVA to test the difference of means.

      After conducting the one way ANOVA we obtain the following result.

Table 9: One Way ANOVA for difference of means

ANOVA

           

Source of Variation

SS

Df

MS

F

P-value

F crit

Between Groups

3.485123

10

0.348512

2.795071

0.012706

2.132504

Within Groups

4.114709

33

0.124688

     
             

Total

7.599832

43

 

 

 

 

 

Here since p value is less than 0.05 and at the same time F (Critical value) is less than F value, we reject the null hypothesis and state that the mean scores obtained are not equal, i.e. the differences in mean scores are significant.

Now to further investigate which pair of groups in the sample are differing TUKEYS PostHoc Test is conducted. The table below shows the multiple comparisons of means each of different banks

Table 10: Multiple Comparisons

Scores

Tukey HSD

 

 

 

 

 

(I) Banks

(J) Banks

Mean Difference (I-J)

Std. Error

Sig.

95% Confidence Interval

Lower Bound

Upper Bound

SBI

ICICI

-.062000

.249688

1.000

-.92411

.80011

AXIS

-.462750

.249688

.741

-1.32486

.39936

HDFC

.385500

.249688

.894

-.47661

1.24761

UNION

.212000

.249688

.998

-.65011

1.07411

BOB

-.132000

.249688

1.000

-.99411

.73011

CANARA

.381750

.249688

.899

-.48036

1.24386

VIJAYA

.457000

.249688

.754

-.40511

1.31911

UCO

.324000

.249688

.963

-.53811

1.18611

INDUSIND

.258500

.249688

.993

-.60361

1.12061

PNB

.470250

.249688

.723

-.39186

1.33236

ICICI

SBI

.062000

.249688

1.000

-.80011

.92411

AXIS

-.400750

.249688

.869

-1.26286

.46136

HDFC

.447500

.249688

.776

-.41461

1.30961

UNION

.274000

.249688

.988

-.58811

1.13611

BOB

-.070000

.249688

1.000

-.93211

.79211

CANARA

.443750

.249688

.784

-.41836

1.30586

VIJAYA

.519000

.249688

.599

-.34311

1.38111

UCO

.386000

.249688

.893

-.47611

1.24811

INDUSIND

.320500

.249688

.965

-.54161

1.18261

PNB

.532250

.249688

.565

-.32986

1.39436

 

AXIS

SBI

.462750

.249688

.741

-.39936

1.32486

 

ICICI

.400750

.249688

.869

-.46136

1.26286

 

HDFC

.848250

.249688

**.057

-.01386

1.71036

 

UNION

.674750

.249688

.242

-.18736

1.53686

 

BOB

.330750

.249688

.957

-.53136

1.19286

 

CANARA

.844500

.249688

**.059

-.01761

1.70661

 

VIJAYA

.919750*

.249688

*.029

.05764

1.78186

 

UCO

.786750

.249688

**.099

-.07536

1.64886

 

INDUSIND

.721250

.249688

.170

-.14086

1.58336

 

PNB

.933000*

.249688

*.025

.07089

1.79511

 

HDFC

SBI

-.385500

.249688

.894

-1.24761

.47661

 

ICICI

-.447500

.249688

.776

-1.30961

.41461

 

AXIS

-.848250

.249688

**.057

-1.71036

.01386

 

UNION

-.173500

.249688

1.000

-1.03561

.68861

 

BOB

-.517500

.249688

.603

-1.37961

.34461

 

CANARA

-.003750

.249688

1.000

-.86586

.85836

 

VIJAYA

.071500

.249688

1.000

-.79061

.93361

 

UCO

-.061500

.249688

1.000

-.92361

.80061

 

INDUSIND

-.127000

.249688

1.000

-.98911

.73511

 

PNB

.084750

.249688

1.000

-.77736

.94686

 

UNION

SBI

-.212000

.249688

.998

-1.07411

.65011

 

ICICI

-.274000

.249688

.988

-1.13611

.58811

 

AXIS

-.674750

.249688

.242

-1.53686

.18736

 

HDFC

.173500

.249688

1.000

-.68861

1.03561

 

BOB

-.344000

.249688

.945

-1.20611

.51811

 

CANARA

.169750

.249688

1.000

-.69236

1.03186

 

VIJAYA

.245000

.249688

.995

-.61711

1.10711

 

UCO

.112000

.249688

1.000

-.75011

.97411

 

INDUSIND

.046500

.249688

1.000

-.81561

.90861

 

PNB

.258250

.249688

.993

-.60386

1.12036

 

BOB

SBI

.132000

.249688

1.000

-.73011

.99411

 

ICICI

.070000

.249688

1.000

-.79211

.93211

 

AXIS

-.330750

.249688

.957

-1.19286

.53136

 

HDFC

.517500

.249688

.603

-.34461

1.37961

 

UNION

.344000

.249688

.945

-.51811

1.20611

 

CANARA

.513750

.249688

.613

-.34836

1.37586

 

VIJAYA

.589000

.249688

.421

-.27311

1.45111

 

UCO

.456000

.249688

.757

-.40611

1.31811

 

INDUSIND

.390500

.249688

.886

-.47161

1.25261

 

PNB

.602250

.249688

.390

-.25986

1.46436

 

CANARA

SBI

-.381750

.249688

.899

-1.24386

.48036

 

ICICI

-.443750

.249688

.784

-1.30586

.41836

 

AXIS

-.844500

.249688

**.059

-1.70661

.01761

 

HDFC

.003750

.249688

1.000

-.85836

.86586

 

UNION

-.169750

.249688

1.000

-1.03186

.69236

 

BOB

-.513750

.249688

.613

-1.37586

.34836

 

VIJAYA

.075250

.249688

1.000

-.78686

.93736

 

UCO

-.057750

.249688

1.000

-.91986

.80436

 

INDUSIND

-.123250

.249688

1.000

-.98536

.73886

 

PNB

.088500

.249688

1.000

-.77361

.95061

 

VIJAYA

SBI

-.457000

.249688

.754

-1.31911

.40511

 

ICICI

-.519000

.249688

.599

-1.38111

.34311

 

AXIS

-.919750*

.249688

*.029

-1.78186

-.05764

 

HDFC

-.071500

.249688

1.000

-.93361

.79061

 

UNION

-.245000

.249688

.995

-1.10711

.61711

 

BOB

-.589000

.249688

.421

-1.45111

.27311

 

CANARA

-.075250

.249688

1.000

-.93736

.78686

 

UCO

-.133000

.249688

1.000

-.99511

.72911

 

INDUSIND

-.198500

.249688

.999

-1.06061

.66361

 

PNB

.013250

.249688

1.000

-.84886

.87536

 

UCO

SBI

-.324000

.249688

.963

-1.18611

.53811

ICICI

-.386000

.249688

.893

-1.24811

.47611

AXIS

-.786750

.249688

**.099

-1.64886

.07536

HDFC

.061500

.249688

1.000

-.80061

.92361

UNION

-.112000

.249688

1.000

-.97411

.75011

BOB

-.456000

.249688

.757

-1.31811

.40611

CANARA

.057750

.249688

1.000

-.80436

.91986

VIJAYA

.133000

.249688

1.000

-.72911

.99511

INDUSIND

-.065500

.249688

1.000

-.92761

.79661

PNB

.146250

.249688

1.000

-.71586

1.00836

INDUSIND

SBI

-.258500

.249688

.993

-1.12061

.60361

ICICI

-.320500

.249688

.965

-1.18261

.54161

AXIS

-.721250

.249688

.170

-1.58336

.14086

HDFC

.127000

.249688

1.000

-.73511

.98911

UNION

-.046500

.249688

1.000

-.90861

.81561

BOB

-.390500

.249688

.886

-1.25261

.47161

CANARA

.123250

.249688

1.000

-.73886

.98536

VIJAYA

.198500

.249688

.999

-.66361

1.06061

UCO

.065500

.249688

1.000

-.79661

.92761

PNB

.211750

.249688

.998

-.65036

1.07386

PNB

SBI

-.470250

.249688

.723

-1.33236

.39186

ICICI

-.532250

.249688

.565

-1.39436

.32986

AXIS

-.933000*

.249688

*.025

-1.79511

-.07089

HDFC

-.084750

.249688

1.000

-.94686

.77736

UNION

-.258250

.249688

.993

-1.12036

.60386

BOB

-.602250

.249688

.390

-1.46436

.25986

CANARA

-.088500

.249688

1.000

-.95061

.77361

VIJAYA

-.013250

.249688

1.000

-.87536

.84886

UCO

-.146250

.249688

1.000

-1.00836

.71586

INDUSIND

-.211750

.249688

.998

-1.07386

.65036

*. The mean difference is significant at the 0.05 level.

** The mean difference is significant at the 0.1 level.

 

 

 

                                 

 

From the Table 10 it is clear that the differences of means are significant for the pairs such as AXIS-HDFC, AXIS-CANARA, AXIS-VIJAYA, AXIS-UCO and AXIS-PNB. The differences of means in rest of the pairs are insignificant.

  1. Conclusion

The user responses in a likert scale were tapped to identify the performance score of banks in different dimensions. Finally an overall performance index has been computed to find the overall position of the banks under study based on the quality dimensions of electronic banking services. The computation is made by combining the performance of the banks in each category or dimensions of E-banking services. The overall performance index suggests that as per the overall ranking of performance is concerned, AXIS bank tops the list with score 6.365 out of 7, which is followed by Bank of Baroda with score 6.034. In the third position is ICICI bank with SBI in fourth position. At the bottom we have Punjab National Bank. The index obtained is very helpful in identifying the position or overall status of E-banking service of a particular bank under study. From the mean scores obtained the banking organizations can identify and measure the difference in scores from the top position and differences of scores with its competitors. Since the index is developed based on sample from each bank under proportional allocation of number of customers, hence few banks have very low respondents as population is very low. As such the index cannot be generalized and the results may be different with larger respondents, location and many other factors.

 

 

 

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