Impact of ICT (online services) on customer satisfaction: A study of

Pakistan’s Banking Sector

Faisal ImranMS(IS&T)

Quaid-i-Azam university Islamabad

This will examine the impact of ICT (online service) on

customer satisfaction in Pakistan’s banking sector. 12

local and 12 foreign banks will be selected for this study.

The data/Survey will tested by applying different

statistical techniques. The results of the research will led

to the conclusion that ICT (online services) has

positive/Negative impact on customer satisfaction.

Research Problem

ICT Introduction

IT is a general term that describes any technology that helps to produce, manipulate process, store, communicate, and/or disseminate information(William and Sawyar (2005))

IT within a short span of time has become the necessity of every organization

IT has given a new meaning to the word “Convenience”

IT has drastically changed the business landscapes all over the world

word “IT” has become the “Catchword” of the modern life today

Introduction

ICT Pakistan: Introduction

IT is being used in all government and private organizations for different tasks

IT ministry is responsible for monitoring all the IT related issues (Kazmi, 2003;Rizvi, 2005)

Automated Teller Machine (ATM) (Don Wetzel developed ATM in 1973 and it was first installed at Chemical Bank in New York(Shelly et. al. (2004))

ATM’s introduced the power of computer technology to the general public and made banking convenient for consumers

ICT Pakistan: Introduction

ICT in Pakistan’s Banking

There is a phenomenal progress in banking sector of Pakistan over last decade

It recorded an increase of 99% growth in profit in only one year, i.e. 2005 (Mahmood, 2006; The Dawn, March 21, 2006)

NBP, HBL, MCB, ABL,UBL are considered five large banks and are dominant in the banking industry

Most of the local banks are in private sector now The introduction of computer in banks in Pakistan started in

1965 Habib Bank, United Bank and Muslim Commercial Bank started

acquiring computers to automate their banking work in 1965

ICT in Pakistan’s Banking

The most recent automated banking systems like Misys, Sibel, and Fidility etc are being installed in many of the Pakistani banks (Kazmi 2004)

Due to entry of Islamic banking sector and other factors, banks are competing for market share with each other

The success of banking organization rests with the success in customer loyalty and retention

Customer satisfaction is very important issue that is being addressed by banking organizations

ICT in Pakistan’s Banking

Research Method

After available literature a questionnaire will be developed

And based on these hypothesis are created The data/Survey will tested by applying different

statistical techniques to prove the hypothesis Descriptive method is selected Defines descriptive method as involving collection

of data in order to test hypothesis or to answer questions concerning the current status of the subject of the study (Gay 1976)

Research Method

Unit of Analysis

Unit of analysis shapes what type of data you should collect for your study and who you collect it from

We are interested in studying customer’s satisfaction in online services of Pakistani banks

unit of analysis is the individual

Unit of Analysis

Theory

We examined the previous research conducted on our topic

Once we develop hypotheses, it is time to test them in the data collection and analysis phase of our research

So Theory is deductive

Theory

Population

In this research problem population is customers from Pakistan’s banking sector using online services

Population

Variables

A variable is a quantity that can vary A variable is a measurable representation

of an abstract construct Following are the variables in this research problem

Customer Satisfaction (Dependent Variable) ICT(Online Services) –Independent Variables

Variables

We conceptualize a customer’s stratification consisting of two dimensional constructs Online service Communication rateSo we say Multidimensional constructs applied

Constructs

Hypothesis

Hypotheses are designed to be empirically testable May be rejected if not supported by empirical

observations Goal of hypothesis testing is to infer about the

validity of the corresponding propositions

Hypothesis

Research Hypothesis (1)“There has been substantial increase with respect to customer satisfaction in the given sector, after implementation of ICT (online services).”Research Hypothesis (2)“The change with respect to customer satisfaction in given sector after implementation of ICT (online services) is not the same”

Hypothesis

Social Theory Mapping

IT usage is increasing gradually. Though in the beginning Pakistani government was slow in adoption and diffusion of IT but now it is at forefront of all government priorities

Now all banks provide online services to its customers and all branches are connected through ICT (online services)

1-Link and MNET is an example where multiple banks connected to each other and centralized services (ATM) are offered

In this study we examine the adoption of ICT (online services) by customers and their satisfaction about ICT (online services)

Innovation diffusion theory is applied on this problem

Social Theory Mapping

Sampling

A statistical process of selecting a subset (called a “sample”) of a population of interest for purposes of making observations and statistical inferences about that population

We cannot study entire populations because of feasibility and cost constraints

Probability sampling is selected in current research problem where every customer with online services has chance to select

Simple random sampling is used to select customers

Sampling