Contents

Introduction .................................................................................................................................................. 1
Statement of the Problem ............................................................................................................................ 3
Purpose of the study ..................................................................................................................................... 4
Review of Literature...................................................................................................................................... 4
Diagram ....................................................................................................................................................... 26
Questions and Hypotheses ......................................................................................................................... 27
THE RESEARCH DESIGN METHODS AND PROCEDURES ........................................................................... 29
SAMPLING ................................................................................................................................................... 30
INSTRUMENTS............................................................................................................................................. 31
DATA COLLECTION ...................................................................................................................................... 32
DATA ANALYSIS ........................................................................................................................................... 33
Limitations of the study .............................................................................................................................. 48
Significance of study ................................................................................................................................... 49
Bibliography ................................................................................................................................................ 51
Appendixes.................................................................................................................................................. 61

Introduction
The World Wide Web has permeated the every aspects of our modern life. We are blessed with
technologies where all our works is now a matter of click completed within second .Banking is
now no more limited in going and visiting the bank in person for various purposes like depositing
and withdrawing money. Online banking is the practice of handling all the bank transactions
through internet. A client executes a banking transaction through electronic intelligent devices.
Online banking system hastens the banking system hence increasing the efficiency and
effectiveness.
The banking sector occupies an important position in the global economy. The internet is a key
driver which has changed the pattern of organizations performing their business with customers.
The banking industry is no exception. Technology has brought a revolution in our conventional
banking system. E-banking can offer speedier, quicker and dependable services to the customers
for which they may be relatively satisfied than that of conventional system of banking. In order
to gain competitiveness, banks have been introducing more internet banking services.
However, in true sense, e-banking includes activities like payment of bills and invoices, transfer
of funds between accounts, applying for a loan, payment of loan installments, sending funds to
third parties via emails or internet connections regardless of where the client is located.
Yes, online banking is generally secure, but it certainly isn't always secure. Identity theft is running
rampant. Security is arguably the most significant drawback to online banking. This time is the
age of the computer hacker and identity theft is one of the most widespread social diseases in
America and around the world. As such, despite every bank's best effort to keep its website secure,
unfortunately nothing is flawless and there is always at least a slight risk that someone somewhere
will hack into your account and gain access to sensitive information. Transaction is even more
convenient than its traditional counterpart, there are just certain aspects of banking that need to be
done in person rather than from behind a monitor. Depositing cash, making certain types of
international transactions, and other service issues can be challenging to address via email or even
real-time customer service chat capability. With some service issues, it obligatory for the customer
to make a trip to the bank and get their needs met face-to-face. Online banking is made our easier
its obvious but any malfunctioned can leads to any kind of astray. Likewise in term of ATM booth
it may not work out properly in delivering money in exchange of ATM card on the other hand it
may work too good that may flourishes one who luckily appeared there.one incident took place in
back 2013 in California, an ATM machine started to dispensing cash at seemingly random times
of day but on one had put in a card or even touched the machine. Cameras showed that the piles
of money had been swept by ones who appeared there at the right moment.

Apart from the developed countries developing countries also experience the strong growth in e-banking.
But implementation of successful full-fledged e-banking in Bangladesh is not smooth, as there are
numerous problems or difficulties inherent. Although e-banking is a powerful tool to drive development
though Bangladeshi customers have not sufficient knowledge about online and its procedure. E-banking
is new and unfamiliar for some people in Bangladesh for some people due to digital divide and the
different level of experience. Lack of proper technological knowledge they are not able to assimilate with
new technological change therefore they are often victimized with terrible incidents. If we see the recent
online banking scandal in Bangladesh for an example that would be the enough to entails the tattered
condition of online banking system of Bangladesh. In February 2016, the hackers breached Bangladesh
Banks system and stole its credentials for payment transfers. Unknown Hackers also managed to get
away with approximately $80m, one of the biggest online banking scandals in Bangladeshi history ever.
Four requests from hackers to transfer $80m to the Philippines went through. Fortunately fifth transfer
request to Sri Lanka stop because of hackers spelling mistake.
Admittedly there isnt too much downside to online banking but there are a few things that need to change
and keeps pace with technological change to efface the stigma of online banking.
Our research on online banking consists of few steps. It starts from statement of the problem to reference
and appendix. In between there are also many steps include to systematically forward with research.
Maintain steps are the key elements of successful research from which a reader can easily get the view
of the whole.

Statement of the Problem

Online Banking offers a higher level of convenience for managing one's finances. However, it
continues to present challenges to the financial security and personal privacy. Many people have
had their account details compromised, as a result of online banking because of hacking that
enables unethical access to others account. There have been plenty of cases in which web surfers
were accidentally exposed to the financial details of online bankers. .Thus, if one is going to use it
for financial transactions, he should be aware of the risks involved. Awareness of the risks and
problems enables him to take precautions for a more secured online banking experience.
However, most of the banks try to make their sites secured by implementing latest network security
software after there still remain threats because accounts are only protect by user name and
password that makes it vulnerable to such threats.
In Bangladesh, along with others online banking system is rising as well. Our daily life somehow
entwined with online banking. So online banking fraudulence issues are becomes talk of the tongue
in recent days. Therefore, we should say that study about online banking has significance
undoubtedly.
3

Purpose of the study

By doing this study we get to know an idea of the consumer of online banking and get to
know how consumer behaving towards the online banking.
Get to know trust and security related issues of online banking.
Get to know how risk associated with online banking.
Get to know how online banking service consumers perceived usefulness.
To find out the quality, informativeness and credibility of online banking.
To find out the intentions of consumers how they adopt online banking.
By doing this study we come to know the attitude toward using the internet banking
services of the physical banking.
To get to know perceived easiness of use of internet banking of consumption.

Review of Literature
Perceived trustworthiness:
There exists considerable debate regarding the differences between trustworthiness and trust; it is
generally agreed that trustworthiness is conceptually distinct from trust (Hardin, 2002) ; (Gefen D.
B., 2008); (Colquitt J. A., 2011), ; (Kharouf, 2014).
(Hardin, 2002)While trust is often related to the belief one holds about the service provider,
trustworthiness on the other hand is concerned with trait or character of the service provider.
Distinguishing the two, (Hardin, 2002) stated that unlike trust which develops following the
customers direct experience with the service provider, trustworthiness towards a service provider
can be developed based on secondary information. Further, the author suggested that
trustworthiness may be essential in developing trust.
(Ashraf, 2006) viewed trust as a belief that relates to the expectation of trustworthiness and
trustworthiness in turn relates to reciprocity.
More recently, (Colquitt J. A., 2011) noted that trustworthiness is an evaluative process based on
the competence or character of the service provider and trust is a cognitive process which relates
to the service provider in an exchange relationship as being trustworthy, distrust and others. Based
on the above discussion, we distinguish trustworthiness from trust and define trustworthiness as
the degree to which the competence and character of the internet banking service provider inspires
4

the customers confidence and reliability to conduct transactions using its internet banking
services.
Extant literature shows that various characteristics of a service provider influence trustworthiness
and trust perceptions. For example, (McKnight D. H., 2002)in their meta-analysis found that
trustworthiness consists of three dimensions: ability, integrity and benevolence.
(Caldwell, 2003) Identified six determinants of trustworthiness namely honest communication,
task competence, quality assurance, interactional courtesy, legal compliance, and financial
balance. Similarly, (Ennew, 2007) identified expertise and competence, integrity and consistency,
communication, shared values, and concern and benevolence as key determinants of
trustworthiness.
(Roy S. K., 2010) Examined the underlying dimensions of trustworthiness in the financial services
context. They found that trustworthiness consists of three second-order dimensions of competence
(ability and expertise), openness (shared value and communication), and benevolence (integrity
and orientation). These studies reveal that there is no clear consensus on the determinants of
trustworthiness and trust. However, previous studies indicate that being concerned about its
customers interest, expressing goodwill, sharing common values with customers, and being
honest and consistency are key to developing trustworthiness and trust in online context (Yousafzai
S. P., 2009)). Consequently, we consider competence, integrity, benevolence, and shared values
as determinants of trustworthiness and trust in internet banking context.
An issue hampering a richer examination of customers trust on e-commerce is the lack of
empirical attention given to perceived trustworthiness. The distinction between trust and
trustworthiness was articulated by (Mayer R. D., 1995). They indicated that perceived trustworthiness is the trustors perception of how trustworthy the trustee is, while trust is the trustors
willingness to engage in a risky behaviour.
(Mayer R. D., 1995) Identified three main elements of perceived trustworthiness as ability,
integrity, and benevolence. However, the authors noted that these factors are not trust per se, but
they help build the foundation for the development of trust (p. 717). They also suggested that
these characteristics are related, but separable, and that together they explain a large variance in
trustworthiness while maintaining parsimony.
Previous research has shown that perceived trustworthiness directly or indirectly influences the
customers level of trust in e-commerce transactions (Jarvenpaa S. &., 1999). However, the
literature on online trust has rarely addressed trustworthiness as a distinct concept and mostly it is
subsumed by a trust construct. In this study, it is proposed that perceived trustworthiness will have
an indirect effect, through perceived security and perceived privacy, and a direct effect on the
customers trust to engage in Internet banking because it will assure the customers that the bank is
both competent (able) and willing (benevolence and integrity) to deliver services in accordance
with their expectations.
5

(Roy S. K., 2010) examined the underlying dimensions of trustworthiness in the financial services
context. They found that trustworthiness consists of three second-order dimensions of competence
(ability and expertise), openness (shared value and communication), and benevolence (integrity
and orientation). These studies reveal that there is no clear consensus on the determinants of
trustworthiness and trust. However, previous studies indicate that being concerned about its
customers interest, expressing goodwill, sharing common values with customers, and being
honest and consistency are key to developing trustworthiness and trust in online context (Yousafzai
S. P., 2009); (Kharouf, 2014). Consequently, we consider competence, integrity, benevolence, and
shared values as determinants of trustworthiness and trust in internet banking context.
Attributes of trustworthiness
Perceived ability
Competence refers to the service providers ability and knowledge to provide consistent and
desirable performance in fulfilling the customer needs. In internet banking context, competence is
the belief about the internet banking service providers expertise and experience in incorporating
and maintaining appropriate technological safeguards in the internet banking website to protect
customers from violations of privacy and financial loss. In high perceived risk environment such
as internet banking it is necessary for the service provider to highlight that they capable of
delivering what they promise. In such case, competence reduces the customers risk perceptions
and increases their confidence in the internet banking services. For example, (Zhao, 2010) found
that competence in internet banking reduces perceived risk and increase its usage intentions.
Similarly, (Nguyen, 2011) showed that competence enhances the service providers image and
facilitates the consumption of the goods and services. Nor and Pearson (2008) provide empirical
evidence for the association between competence and trust. Thus, the customers belief that an
internet banking service offers desirable transactional services may result in favorable evaluation
of the internet banking services.
Vendors Control reflects the ability (Mayer R. C., 1995).
Capability (Doney P. M., 1998) to carry out the transaction via the Internet. Ability is a
characteristic that differentiates one vendor from another in fulfilling its commitment toward
customers. (Doney P. M., 1998) state that capability is one of the trust developing processes, and
it implies evidence that a vendor has the required ability to meet its promises.
Ratnasingam (2005) explains the capability process in terms of security services that facilitate the
transactions of e-commerce.
Perceived integrity
(Mayer R. C., 1995) Define integrity as the trustors perception that the trustee adheres to a set
of principles that the trustor finds acceptable. In this study we define integrity as being trustful in
6

the dealings, provide timely and accurate information, maintain commitment, act ethically and not
exploit vulnerabilities, and create environment for maintaining confidentially. Integrity conveys
an image of predictability, honesty, and objectivity and contributes to the development of positive
reputation for the service provider.
In the online context, (Suh B. &., 2003) found that data integrity and confidentially positively
influence trust towards electronic commerce.
Similarly, (Yap, 2006)found that clarity in instruction enhances customer confidence and trust in
internet banking. Thus, customers with high integrity belief in internet banking are more likely to
develop positive attitude and evaluate it favorably.

Perceived Benevolence:
Benevolence is the perception that the service provider is genuinely interested in the customers
welfare beyond its egocentric profit motives. It is evident when the service provider shows
responsiveness and empathy for customer needs and concerns.
(Doney P. M., 1998) Highlight the importance of benevolence when they define trust as the
expectation that the service provider will not engage in opportunistic behaviors despite the shortterm benefits.
Benevolence is rooted in buyer-seller relationship (Ba S. &., 2002) as it mitigates the perception
of uncertainty and risk associated with the opportunistic behaviors. Thus, benevolence promotes
the ability of the internet banking services to perform in manner that realizes the customers
expectations.
Benevolence is the extent to which a trustee is believed to want to do good to the trustor, aside
from an egocentric profit motive. (Mayer R. C., 1995) An example for benevolence is a mentormentee relationship, where the mentor wants to help the mentee even if there is no extrinsic reward
for the mentor.

Relationship between trustworthiness and perceived risk and security

While privacy and security strategies are commonly used, online marketers may also build
perceptions of trustworthiness by designing effective customer interfaces. Like physical store
customers, electronic customers tend to trust marketers that provide continuous service. Online
marketers may convey their commitment to continuous service with the inclusion of customer
service links, interactive email, and a help button on their Web site (Lohse, 1998). Similarly, a

marketers integrity can be inferred from explicit information about shipping and handling costs,
guarantees, and statements about product quality.

Perceived Usefulness of Internet Banking:The importance of perceived usefulness has been widely recognized in the field of electronic
banking (Guriting P, 2006); (Eriksson K, 2005); (Laforet S, 2005); (Polatoglu VN, 2001); (Liao
Z, 2002). According to them usefulness is the subjective probability that using the technology
would improve the way a user could complete a given task. Based on theories in social psychology,
such as the theory of reasoned action (TRA) (Ajzen I, 1980); (Fishbein M, 1975)and the theory of
planned behavior (TPB) (I, 1985), the technology acceptance model (TAM) has been validated as
a powerful and parsimonious framework (FD, 1989); According to the TAM, perceived usefulness
is the degree to which a person believes that using a particular system would enhance his or her
job performance. According to Davis et al. (1992), perceived usefulness refers to consumers
perceptions regarding the outcome of the experience. Davis (1993) defined perceived usefulness
as the individuals perception that using the new technology will enhance or improve her/his
performance. Similarly defined perceived usefulness as the extent to which a person deems a
particular system to boost his or her job performance applied TAM in Finland and they found
perceived usefulness as a determinant of actual behavior which encouraged the user of the twenty
first century banking to use more innovative and user friendly self-service technologies that give
them greater autonomy in performing banking transactions, in obtaining information on financial
advices, and in purchasing other financial products. However, Gerrard and Cunningham (2003)
noted that the perceived usefulness depends on the banking services offered such as checking bank
balances, applying for a loan, paying utility bills, transferring money abroad, and obtaining
information on mutual funds. There are extensive evidences proving the significance of effect of
perceived usefulness on adaptation intention (Chen YH, 2007); (Guriting P, 2006); (Eriksson K,
2005); (Hu PJ, 1999); (V, 2000); (Venkatesh V, 1996); (Tan M, 2000) suggested that the perceived
usefulness is an important factor in determining adaptation of innovations. As a consequence, the
greater the perceived usefulness of using electronic banking services, the more likely that
electronic banking will be adopted Hence, the researchers posit.

Perceived Usefulness of Internet Banking relationship with attitude toward using the internet
banking services of physical banking:-

As information technology rapidly changes the fabrics of industries in recent years, the trade of
electronic banking has become more and more diversified. Specializing in unlimited, speedy and
convenient services, on-line banking has transformed traditional banking in many countries
(Anguelov, 2004) (Lichtenstein, 2006). The managements ability to anticipate and respond to
such changes in the financial marketplace, thus, plays a pivotal role in the success or failure of
retail banks (Gan, 2006)
There is no doubt that the web is now transforming all facets of business, and its impact on
customer service has been felt on a daily basis. Pure service organizations, such as banks, provide
electronic services to their customers. Because of the ever-increasing revenues generated by online
services, it is essential that the organizations using this avenue get it right, lest that they risk losing
a major source of income. Business firms with poor online service are guaranteed to lose their
competitive edge to those who invest in carefully designing their services and are well organized
and smoothly delivering (Gronfeldt, 2006)
In light of current prevalence of online banking, commercial banks in Taiwan have been trying to
popularize and improve their online banking systems (Wa ng, 2003)However, performance of
Taiwans banking industry has deteriorated over the last few years foreign banks have the highest
ROE and EPS (Liu, 2007). The increasing use of online banking as an additional channel of
marketing banking service has significantly improved the financial performance of community
banks in the U.S. (Acharya, 2008)While banks are fully experienced in capturing economies of
scale, developing business in international trade, increasing market prowess and creating "brand"
image with the physical side of their operations, online banking presents a different set of
challenges (Avery, 2008). Moreover, companies with poor online service are bound to lose its
competitive edge to those who invest in making their service carefully designed, well organized
and smoothly delivered .To guide our study, we utilized Daviss Technology Acceptance Model
(TAM) and conducted a face-to-face survey to investigate customers intension of online banking
adoption in Taiwan banking industries.
Perceived ease of use of Internet banking:Researchers argued that perceived ease of use is the extent to which a person accepts as true that
using an exacting method would be at no cost to that individual (FD, 1989); (K, 1991); At first
affirmed perceived ease of use is the term that represents the degree to which an innovation is
perceived not to be difficult to understand, learn or operate. He further stated that perceived ease
of use is the degree to which consumers perceive a new product or service as better than its
substitutes stated that the degree to which an innovation is easy to understand or use could be
considered as perceived ease of use. According to Mathieson, the perceived ease of use is the
consumers perception that banking on the internet will involve a minimum of effort. Similarly,
Consult (2002) noted that perceived ease of use refers to the ability of consumers to experiment
with a new innovation and evaluate its benefits easily. He also affirmed that the drivers of growth
in electronic banking are determined by the perceived ease of use which is a combination of
convenience provided to those with easy internet access, the availability of secure, high standard
9

electronic banking functionality, and the necessity of banking services. Extensive research over
the past decade provides evidence of the significant effect of perceived ease of use on usage
intention, either directly or indirectly (Hernandez JMC, 2007); (Guriting P, 2006 ); Early in 1962,
Rogers noted that under-standing the technology leads to adaptation of innovative service/ product
by customers is known as ease of use. Recently, have empirically found that two technological
aspects of the interface, namely perceived ease of use and perceived usefulness significantly affect
customer adaptation intentions. Therefore, following research questions and hypotheses has been
formulated.
Perceived ease of use of Internet banking relationship with attitude toward using the internet
banking services of physical banking:An innovation was negatively related to its rate of adoption ( (New York: The Free Press, a
Division of, 1995). Diffusion of innovation theory was supported by many empirical studies;
Howcroft,and Kolodinsky. The second stream concentrates on the identification of the
determinants of intention suchas: Attitudes (A), Social Norms (SN), and Perceived behavior
control (PBC) .That stream included the theory of reasoned action, the theory of planned behavior,
the decomposed theory of planned behavior and technology acceptance model. The theory of
reasoned action (TRA): This theory was proposed by (Intention and Behavior: An Introduction to
Theory and Research, Addison, 1975); According to the theory, a person's intention is a function
of two basic determinants, one is personal in nature (attitudes) and the other reflecting social
influence (social or subjective norms). Many
researchers supported the Fishbone and Ajzenbehaviouralintention model ( (Bagozzi, R.P, 2007).
Others also supported the attitudinal dependence on social influence (Oliver, R. L., and Bearden,
W. O, 1985)). The model was also applicable across cultures ( (Malhotra, N. K., and McCort, J.
D, 2001)).
The theory of planned behaviour (TPB): This theory added perceived behavioural control to the
antecedents identified by the theory of reasoned action (Ajzen, , 1991) Thus, behavioural intention
is formed by one's attitude, subjective norm, and perceived behavioural control (PBC), which
reflects perceptions of internal and external constraints on behaviour. By including PBC, the theory
model accounted for more variance in intention (44.50%) than TRA model (37.27%) . Empirically,
the effect of behavioural control was supported (Liao, S., Shao, 1999)
The exact nature of the relationships between attitudes, subjective norms, and perceived
behavioural control were still uncertain however. Also, the conceptualization of PBC has been
controversial (Kraft, P., Rise, 2005) and measurement of salient beliefs underlying the model
remained a problem making
it difficult to operationalize the TPB. The decomposed theory of planned behaviour: Taylor and
addressed these limitations of the TPB by recommending a set of stable, decomposed beliefs
structures for the TPB model and proposed the decomposed theory of planned behaviour. The
Decomposed TPB is an alternative version of the TPB model with decomposed belief structures.
In this model, attitudinal, normative, and control beliefs are decomposed into multidimensional
10

belief constructs. It provided better diagnostic value and more understanding of the usage than the
original TPB model. It was still more complex because introduced a large number of factors that
may influence usage ( (Hsu, M., and Chiu, C, 2004)).The theory was supported by a number of
researchers however (Jaruwachirathanakul and Fink, The Technology acceptance model (TAM):
According to TAM, perceived usefulness (PU), and perceived ease of use (PEOU) influence one's
attitude toward system usage. These two beliefs determine one's intention to use technology. TAM
does not include social norms (SN) as a determinant of behavioral intention. TAM compares
favorably to TRA and TPB ( (Taylor, S., and Todd, P. A, 1995)). Higher convergent and
discriminant validity were reported ( ( Adams, D. A., Nelson, R. R., and Todd, P. A, 1992)). It
allowed other factors to be incorporated easily into its basic framework, if
desired, to better explain user adoption intention (Hong, S., Thong, J., and Tam, K, 2006).
McKechnie, reported that TAM is helpful in obtaining a better understanding of factors influencing
the extent of use of the internet in financial services. (htt)

Satisfaction with physical bank:The literature pertaining to relationships among customer satisfaction, customer loyalty, and
profitability can be divided into two groups. The first, service management literature, proposes
that customer satisfaction influences customer loyalty, which in turn affects profitability.
Proponents of this theory include researchers such as Anderson and Fornell; (Gummesson, 1993);
(Reicheld, 1990); Schneider and Bowen (1995); Storbacka et al. (1994); and Zeithaml et al. (1990).
These researchers discuss the links between satisfaction, loyalty, and profitability. Statisticallydriven examination of these links has been initiated by Nelson et al. (1992), who demonstrated the
relationship of customer satisfaction to profitability among hospitals, and Rust and Zahorik (1991),
who examine the relationship of customer satisfaction to customer retention in retail banking. The
Bank Administration Institute has also explored these ideas, in particular Roth and van der Velde
(1990, 1991).
The service management literature argues that customer satisfaction is the result of a customers
perception of the value received in a transaction or relationship where value equals perceived
service quality relative to price and customer acquisition costs (see Blanchard and Galloway, 1994;
Heskett et al., 1990) relative to the value expected from transactions or relationships with
competing vendors (Zeithaml et al., 1990). Loyalty behaviours, including relationship
continuance, increased scale or scope of relationship, and recommendation (word of mouth
advertising) result from customers beliefs that the quantity of value received from one supplier is
greater than that available from other suppliers. Loyalty, in one or more of the forms noted above,
creates increased profit through enhanced revenues, reduced costs to acquire customers, lower
customer-price sensitivity, and decreased costs to serve customers familiar with a firms service
delivery system (see Reicheld and Sasser, 1990). The second relevant literature is found in the
marketing domain.

11

It discusses the impact of customer satisfaction on customer loyalty. Yis Critical review of
customer satisfaction (1990) concludes, Many studies found that customer satisfaction
influences purchase intentions as well as post-purchase attitude (p. 104). The marketing literature
suggests that customer loyalty can be defined in two distinct ways (Jacoby and Kyner, 1973). The
first defines loyalty as an attitude. Different feelings create an individuals overall attachment to a
product, service, or organization (see Fornier, 1994).
These feelings define the individuals (purely cognitive) degree of loyalty. The second definition
of loyalty is behavioural. Examples of loyalty behaviour include continuing to purchase services
from the same supplier, increasing the scale and or scope of a relationship, or the act of
recommendation (Yi, 1990). The behavioural view of loyalty is similar to loyalty as defined in the
service management literature. This study examines behavioural, rather than attitudinal, loyalty
(such as intent to repurchase).
This approach is intended, first, to include behavioural loyalty in the conceptualization of
customer loyalty that has been linked to customer satisfaction, and second, to make the
demonstrated satisfaction/loyalty relationship immediately accessible to managers interested in
customer behaviours linked to firm performance. Both the service management and the marketing
literatures suggest that there is a strong theoretical underpinning for an empirical exploration of
the linkages among customer satisfaction, customer loyalty, and profitability. The relatively small
quantity of empirical research performed on these relationships to date (Storbacka et al., 1994) is
probably the result of the paucity of organizations measuring soft issues, such as customer
satisfaction and customer loyalty, in meaningful ways. The data set Customer satisfaction data
were collected from 12,000 retail-banking customers at 59 divisions (geographic business units
composed of multiple branches).
The sample was drawn from divisions representing 73 per cent of all households served by the
bank[2]. All divisions examined had been part of the bank for at least one year. All survey data
were aggregated at the division level. The use of divisions as the level of analysis is consistent
with the subject banks philosophy encouraging division leaders to manage their operations
independently while sharing best practices. The divisions maintain independent pricing, policies
and procedures, tools to aid in the delivery of customer service, reward and recognition systems,
and cultures. Within each division, the same variables are relatively standardized.
Thus variation in levels of customer satisfaction can be expected at the division level. The use of
divisions as the unit of analysis is also consistent with the nature of a customers banking
relationship at this bank and many other large US banks today. While in the past a customers
relationship was predominantly with the local branch, the introduction of automatic teller machines
and centralized telephone customer service centres has resulted in many customers who rarely
transact business at a branch. When physical presence at a branch is necessary, it need not be at
the particular branch where an account was opened. Service recovery, an important aspect of a
customer/serviceorganization relationship (Heskett et al., 1990), is at least as likely to occur
through a centralized telephone customer service centre as through a local branch. Thus many

12

customers service experience is probably driven by contact with a variety of points beyond the
local branch and thus captured at the division level.
This hypothesis, combined with the subject banks organization structure stressing the autonomy
of its divisions, supports the use of the division as unit of analysis for this research. Satisfaction
data were collected through a confidential four-page questionnaire developed by the bank and a
market research firm. The survey posed questions about each customers level of satisfaction with
aspects of service and price, and solicited demographic information (see Appendix 1). Surveys
were mailed to randomly selected customers in January 1994[3 Customer-satisfaction survey
respondent demographics do not identically match the banks population as estimated by
management. Respondents more heavily represent older, less-affluent customers.
To ensure that the results of this studys analyses were not influenced by these discrepancies, key
analyses were performed for demographic subgroups categorized by respondent age and
respondent household income. Relationships supporting hypotheses one and two can be inferred
for almost every demographic subgroup, suggesting that the findings based on the data set as a
whole are representative. Customer loyalty data were collected by the divisions on both retention
(length of relationship) and cross sell (depth of relationship). Profitability data for each division
were provided by the banks treasury function.
Satisfaction with physical bank relationship with attitude toward using the internet banking
services of physical banking:For the development of an economy and the endurance of any country, the banking sector is
considered to be a fundamental backbone. The banks are deliberated as the utmost compelling
component of financial sector in any country. The most valuable activities have been executed by
banks such as banks usually simplify the premise of goods and services, provide liquidity for
development of new industries. This is the way through which banks give rise to employment,
assign the capital into profitable investments and also to empowers a country to commence
international transactions and trade which is a contribution in the prosperity of a country.
As the technology has been enhanced and people are more devoted towards performing their
routine life activities with the help of internet, the banking sector has also enhanced the availability
of its services by elaborating its extent of competition towards an e-environment along with the
services of internet banking. The need of internet banking has been analyzed in order to provide
satisfactory services to the customers which make them delight. In general,
the internet has been discovered and used as a method to bring improvements in providing the
service, particularly in banking industry as well as in other service industries1 . In traditional
banking, the major flaws are the convenience and operating hours of physical bank branches. The
branches of banks are only serving customers for 8 hours, and most of the customers feel irritation
in visiting physical branches of banks because they have to wait for their turn, especially in case
of payment of utility bills. Another issue with traditional banking is that banks are closed on gazette
holidays. The services provided by online banks are more attractive for the customers as it provides
13

the ease of use, accessibility, convenience and flexible operating hours. Now-a-days, the internet
is examined as a part of strategic plan by the banks. As the competitive 1 Rod et al., (2009) 4
advantages of conventional networks of branches are disintegrating promptly, the technological
advancement in internet is helpful to transform the way banks operate, deliver and compete2.
Service quality has been determined as an analytical factor of success for the firms through which
the firms can formulate their competitive advantage as well as to enhance their competitiveness.
Pioneered by Parasuraman et al., (1988), the SERVQUAL instrument comprises of five distinct
dimensions. The dimensions of SERVQUAL include tangibles, reliability, responsiveness,
assurance and empathy (Parasuraman et al., (1988) and (1991).
It has been argued by Cowling and Newman (1995), that SERVQUAL Instrument has been
extensively used to evaluate the service quality of distinct service organizations, including banks.
The service quality accompanies that bank should propose the best services of internet banking in
order to encourage the customers to migrate towards the usage of online banking services.
The services of internet banking which should be offered necessarily include ease of use, perceived
usefulness, reliability, accessibility, security, privacy, and responsiveness (Liao and Cheung,
2008) The dimension of tangibles is associated with the physical equipment, physical facilities,
personnel and the materials which are related to communication (Parasuraman et al., (1988) and
(1991). However, in the context of Internet Banking, tangibles is usually related with the design
of websites, contents provided by the banks, installation of updated technologies and visually
appealing physical facilities.
Reliability basically refers to the capability of performing the promised services precisely as well
as deliberately. As far as the internet banking is concerned, the dimension of reliability comprises
of providing relevant information to the users and to provide timely and reliable services. The
responsiveness is associated with the compliance of 2 Sadeghi and Hanzaee (2010) 3 Parsuraman
et al., (1988, 1991) 5 service providers to provide help and instant services to the customers. This
dimension comprises of providing response to the customers regarding any of the queries related
to their online bank accounts. The responsiveness dimension also includes convenience and easy
accessibility of online banking services. The dimension of assurance is related to the information
and courtesy of employees as well as their competency to convey reliance and confidence.
Assurance dimension is comprised of providing reliable answers, consistent services, sustaining
the privacy of account as well as to maintain error-free records. Empathy refers to the provision of
caring and providing peculiar attention to the customers on individual basis. This dimension is
associated with providing the best interests to the customers; understand the particular needs of
customers, provides convenient operating hours and provides individual concentration to the
customers. Customer satisfaction is defined as a measure of the performance of an organizations
product or service in correspondence to the needs and requirements of customers. For all
organizations whether they belong to service sector, manufacturing sector, etc. customer
satisfaction has been emerged as a fundamental objective of operating in the relative industry.
Customer satisfaction is also described as the capability of an organization to accomplish the
emotional, business and psychological needs of the potential customers (Pairot, 2008). According
14

to different researches related to the attitude of customers and their adoption of online banking
services, it has been observed that various determinants have an impact on the perspectives of
customers in adoption of online banking services which include demography, behavior and
motivation level (Laforet and Li, 2005).
However, when the adoption of internet banking is analyzed, the variables such as trust, privacy
and security are delineated as intensely significant factors from the viewpoint of customers
(Benamati and Serva, 2007). 4 Hill and Alexander (2006) 6 in earlier times, many researches have
been conducted related to the recognition and execution of internet banking by the customers.
Some researchers have performed the study on what are the perceptions of customers towards
adoption of internet banking services, however, some of the researchers have also measured the
level of customer satisfaction by considering the dimensions of internet banking service quality.
In the context of Pakistan, only the determinants related to the adoption of internet banking by the
customers has been performed.
This study attempts to determine the relationship between the level of customer satisfaction and
the dimensions of internet banking service quality in Pakistan, by using SERVQUAL Instrument.
This paper is organized in five sections which start from introduction, section 2 represents previous
literature, section 3 provides methodology, section 4 represents estimations and results while last
section concluded the study and give policy implications.

Perceived Security
Perceived Security (PS) is defined as users perception of protection of their transaction details
and personal data against unauthorized access. Security refers to the protection of information or
systems from an unauthorized intrusion, that is, the degree to which the customer perceives ebanking to be easily susceptible to fraud (Fonchamnyo, 2012). Security in e-commerce is being
defined as a threat which creates the circumstance, condition, or event with the potential to cause
economic hardship to data or network resources in the form of destruction, disclosure, modification
of data, fraud, and abuse (Kalakota, 1997). The perceived ease of use may not fully reflect
customer acceptance of Internet banking, if perceived privacy, thus security is low (Suh B. a.,
2003).
Security, being a complex concept, has been defined by several researchers using diverse
classification techniques. In general, security is defined as the protection against security threats.
In electronic commerce, a threat would be defined as an event that can destroy, modify, waste,
deny or disclose information or reduce efficiency of the data and network resources (Belanger,
2002). These threats could appear at the client or the server side (Oppliger, 1999) and these could
originate due to human, system or communication errors (Bargh, 2002).

15

Security is primarily composed of a set of security primitives or objectives. Each of these

objectives aims at protecting the systems and/or users against threats. The primary goals of security
are Confidentiality, Integrity and Availability or the CIA triad (Oscarson, 2003). Over time,
several other objectives such as authentication and authorization have been identified and been
included as an integral part of security. The most widely acknowledged security objectives of ecommerce and its applications are confidentiality, integrity, availability, authentication,
authorization, non-repudiation and privacy (Kesh, 2002).

Objective
Definition
Confidentiality This ensures that the communication between the user/customer and the
service provider is not accessible to other parties (Suh B. a., 2003). Unauthorized
access of information should be prevented (Knorr, 2000). This should include
confidentiality of information that is passed over the network during
communication and also the confidentiality of information that is stored at
different locations (Maijala, 2004).
Integrity
During and after exchange of information, the content should remain
unchanged and should be tamper free. This covers both accidental and
intentional damage to information data (Grandison, 2000). (Ally, 2005), state
integrity ensures that messages that are not created, modified, interception or
deleted by unauthorized people.
Availability
The information required by users should be accessible when required by
them. This ensures that the system is reliable (Maijala, 2004) and authorized
personnel can access the services of an application within a desired time frame
(Knorr, 2000)
Authentication Traditionally authentication deals with verification of parties who are
communicating to guarantee that they are who they claim to be ( (Maijala,
2004); (Suh B. a., 2003). (Claessens, 2002), state that authentication must cover
both, entity authentication and data authentication. They explain that entity
authentication is the verification of the entities or people involved in a
transaction. Data authentication is ensuring the data is valid at a particular
point in time.
Authorization This objective aims at making sure that the user accessing information has the
right to view/manipulate this information (Maijala, 2004). This also includes
ensuring that users of e-commerce applications have the permission to send
requests and communicate with the system.
NonThe aim of this is to ensure that the party involved in initiating a transaction,
repudiation
sending any information, or receiving any information cannot deny it at a later
instance of time (Maijala, 2004).

16

Privacy

Privacy, though considered by some researchers a separate issue from that of

security (Mukherjee A. &., 2003), has been included by many as part of the
security objectives (Nilsson, 2005); (Patton, 2004). From a customers
perspective, security and privacy may not be discrete concepts, and in most
circumstances, security would imply privacy (Suh B. a., 2003). Privacy is
defined as the need to guarantee that the customer information is not accessible
to unauthorized users and is not misused.

Following Ratnasingham (1998), it is proposedthat when a customer develops positive perceptions

of security, the trust and confidencein the relationship will also increase and will promote open,
substantive, and influential information exchange.
(Kesh, 2002) Explain security cannot be defined only as technological measures. There are several
mechanisms that are non-technical in nature such as policies, strategies, information listed on
websites and so on. All these measures are solutions to countering the threats to the security of the
applications and services. Hence, for this paper, security mechanisms are defined as the devices,
technologies, methods, measures used to secure a particular system.
Relationship between Perceived security and Trust:
(Ally, 2005), in their study on electronic payment securitys effect on consumer trust, developed a
framework that identified the relationship between these components of security. In this
framework, security composed of mechanisms and user perception together related to trust.
Classification of these mechanisms on the basis of security objectives was used as a method of
identifying which security mechanisms have a bigger role in developing perception. To evaluate
characteristics of the association of security elements, (Ally, 2005), (Suh B. a., 2003), hypothesised
and confirmed that the presence of security mechanisms positively affect the perception of
security.
The effect of perceived security can either positively or negatively affect consumer trust. Empirical
evidence gathered in studies by (Ally, 2005), (Suh B. a., 2003), (Chellappa, 2002) show that
perceived security has the potential of positively affecting trust. Based on their evidence, it can be
hypothesised that perceived security positively affect consumer trust in e-banking.
Perceived Privacy:Perceived privacy, as defined by (Goodwin, 1991) is the consumers ability to control (a) the
presence of other people in the environment during a transaction and (b) the dissemination of
provided information. The present study defines perceived privacy as customers perception
regarding their ability to monitor and control the collection, use, disclosure, and subsequent access
of their information provided to the bank during an online transaction. Not a new concept, privacy
has been defined as the right of an individual to be left alone and able to control the release of his
17

or her personal information (Warren, 1890). It also refers to an individual's ability to control the
terms by which his or her personal information is acquired and used (Westin, 1967).Consumers in
online environments perceive little control over information privacy and this has a striking
inuence on their willingness to engage in trusting relationships with web merchants. Financial
service customers are more reluctant to use online services out of fear that their nancial life will
become an open book to the Internet universe (Bestavros, 2000).Additionally, information privacy
concerns refer to an individual's subjective views of fairness within the context of information
privacy (Campbell, 1997).
Privacy research has dealt with different issues such as technology, consumer, organizational,
national, and privacy impacts on the practice of research (Chang, 2005). With regard to technology
issues, it is important to find out how new technological advances influence privacy concerns,
what the impacts of privacy protection strategies are on privacy concerns, and what the attributes
of a technology that will create new privacy issues are. Privacy protection strategies refer to the
use of tools and methods to maintain privacy. This may include using personal security measures
such as anti-spyware tools, firewalls, disabling cookies, increasing security levels within browsers,
and using anonymizers, etc. Using such privacy protection strategies has been suggested to
alleviate user privacy concerns. (Anil Gurung, 2008)
Relationship between Perceived privacy and Trust:(Hoffinan, 1999) suggested that the primary reason many Internet users have yet to use ecommerce
or provide personal information to a vendor is due to the fundamental lack of trust with online
transactions which often times requires users to input credit card and other private information.
Companies seek to gain consumers' trust by use of web seals, privacy policy, visual aesthetics, and
navigation quality of their online stores, etc. Trust in companies increases the likelihood of users
to take part in ecommerce transactions. This implies that the perceived risks of users arising from
privacy concems are relieved, to some extent, by developing trust. The privacy research has studied
the impacts of risk and benefits of users in taking part in ecommerce. Consumers make their
calculations of risk which can be attributed to some extent, their privacy concerns and the benefits
of taking part in e-commerce and reach their decision whether to take part in the e-commerce
transaction. Thus there is a risk of a loss of privacy, which is a significant factor in building trust.
The literature has described the willingness to assume the risk of disclosureas a dimension of trust
(Nowak, 1997).
Trust
Trust is the foundation of commerce (Suh B. a., 2003). It plays a crucial role in the development
of human related activities across most industries (Grabner-Krautera, 2003) including the banking
industry (Yousafzai S. Y., 2005). Online trust is defined as the consumer expectations of how the
site would deliver expectations, how believable the sites information is how much confidence the
site commands (Bart, 2005). In essence trust is developed when consumers form positive
18

impressions on the electronic sites and are willing to accept vulnerability. (McKnight D. a., 2002)
(McKnight D. C., 2002). Trust is more crucial and complex in e-commerce environment than
general and traditional commerce due to its uncertain environment and information asymmetry
(Lu, 2003); (Cho, 2007 ). The buyers and sellers normally complete the transaction through
internet technologies and will not necessary meet each other face to face.
The buyers will thus be worried that their personal information and money will be transferred to
third party without their knowledge (Luarn, 2005).According to (Grabner-Krautera, 2003),
building and maintaining trust based relationships between service providers and customers, is
being recognised as an increasingly important issue by both research academia and the industries
themselves. Trust is considered to be a driving force behind the development of ecommerce
applications (Herrmann, 2004).Its importance arises from the fact that trust is one of the key factor
that determines the acceptance and willingness of consumers to engage in transactions, physical
and virtual (Bargh, 2002).Unfortunately, in the electronic world, the meaning of trust and the trust
building mechanisms that are applied in the physical banking world need to be revised (GrabnerKrautera, 2003); (Yousafzai S. Y., 2005).The degree of uncertainty is higher in the virtual banking
setting (Grabner-Krautera, 2003) and therefore trust is a critical component of this environment.
To understand the features that are likely to affect consumer trust, understanding the concept of
trust is essential. In general, trust has been a difficult construct to define (McKnight D. C., 2002).
Trust is more crucial and complex in e-commerce environment than general and traditional
commerce due to its uncertain environment and information asymmetry (Lu, 2003); (Cho, 2007
).The buyers and sellers normally complete the transaction through internet technologies and will
not necessary meet each other face to face. The buyers will thus be worried that their personal
information and money will be transferred to third party without their knowledge (Luarn,
2005).There are at least five facets of trust that can be gleaned from the literature on trust and these
benevolence, reliability competence, honesty and openness are all elements of trust (Wayne,
2002).
Benevolence: The distinction between trust and trustworthiness was articulated by (Mayer R. D.,
1995). They indicated that perceived trustworthiness is the trustors perception of how trustworthy
the trustee is, while trust is the trustors willingness to engage in a risky behaviour.
Reliability: Reliability involves consistency performance and dependability. It means that, the firm
performs the service right the first time. It also means the firm honors its promises. Especially it
involves accuracy in billing and information, keeping records correctly, performing the service of
designated time (. Zeithaml, 2002) ; (Mckinney, 2002). Reliability is associated with the technical
functioning properly.
Competence: Good intentions are not always enough when a person is dependent on another but
some level of skill is involved in fulfilling an expectation an individual who means well may
nonetheless not be trusted (Baier, 1986); (Butter, 1984). Competence is the ability to perform as
19

expected and according to standards appropriate to task at hand, many organizational tasks rely on
competence.
Honesty: Honesty is the persons character, integrity and authenticity. (Rotter, 1967)defined trust
as the expectancy that the word, promise, verbal or written statement of another individual or
group can be relied upon. Statements are truthful when they confirm to what really happened
from that perspective and when commitments made about future actions are kept. A
correspondence between apersons statements and deeds demonstrates integrity.
Trust is said to exist between two parties who are involved in a transaction. This would comprise
of the trustor party who is engaged in receiving the services provided by the trustee party
(McKnight D. H., 1998).
To further develop an understanding of trust, the characteristics of its nature must be examined.
Based on a study by (Bargh, 2002) there are several properties that need to taken into consideration
while defining trust. First, trust is relative to a given context, that is, its characteristics would not
be the same in different circumstances. This implies while trust definitions would differ from one
industry to another, it would also differ within the banking industry. Thus, trust differs in the
physical and online transaction scenarios. This dictates the need to re-define trust within the
boundaries of an e-banking transaction world. Secondly, trust is directed from a relying party or
trustor to a trustee party. Hence, trust is directional. The third property of trust is that it is
measurable. This allows for possibility of measuring any increase or decrease in trust levels in
users at different time instances. Fourthly, trust exits in time and hence can be observed and
measured at different instances. Lastly, trust evolves in time. This evolution can be attributed to
various trust building factors. Managing these factors could help in influencing this evolution.
These properties define trust as a dynamic concept that can be reduced or increased as required.
Relationship between Trust and Intention:
There is both theoretical and empirical evidence of a significant association between trust and BI
to use. For example, (Doney P. a., 1997) found that consumer trust is related to intention to use
the vendor in the future. Whereas, (Gefen D. , 2000) found trust had a significant effect on purchase
intentions and suggested that trust in the e-commerce vendor increases the individuals intention
to use the vendors website.
Relation between trust and Perceived risk:
(Gefen D. R., 2003) Proposed two models from the trust and risk literature: (1) per-ceived risk
mediates between trust and behavior and (2) perceived risk moderates between trust and behaviour.
The conceptualization of perceived risk in this article is based on the first model, which suggests
that the higher the level of the customers trustthelower will be their perception of risk, thus leading
to development of positive intentions. Recent studies of an Internet store suggests that customers
trust on the Internet store leads to a low perceived risk of buying from that store (Jarvenpaa S. T.,
20

2000).The mediating role of perceived risk in the relationship between trust and intention has been
asserted by many other researchers over time (Cheung, 2000); (Pavlou P. , 2003)

Perceived Risk
The concept of consumer-perceived risk has been widely dealt with in the literature and has been
shown to influence consumer behaviour to varying degrees and in varying contexts (Cunningham
et al., 2005) (Mitchell, 1998). Consumer behavior researchers most often define perceived risk in
terms of the consumers perceptions of the uncertainty and potential adverse consequences of
buying a product or service (Littler D. a., 2006). Cunningham et al., 2005; (Pavlou P. , 2003);
Salam et al., 2003; Schlosser et al., 2006argued that perceived risk as an important factor
influencing online consumer behavior.This is because in the online environment, criminal acts can
be performed with extremely high speed, and without any physical contact (Cheung and Lee,
2006). If anunauthorized individual is able to get access to the online banking portfolio of a user,
a considerableamount of financial information may be jeopardised and there might be considerable
financial losses.Previous research in countries with different levels of E-commerce adoption shows
that perceived security risk is an important predictor of internet banking adoption. (Sathye, 1999)
Investigates internet banking adoption by Australian consumers and identifies security concerns
and lack of awareness as the main obstacles to adoption. Gerrardand Cunningham (2003) found
security concerns over internet banking high in both adopters and non-adopters in Singapore.
Research by Lee, (2005) on USA consumers showed24greater concern among prospective
adopters than current adopters over transaction security and monetary benefits when choosing an
internet based banking service. Cheng,(2006) found perceived web security to be a significant
determinant of customer acceptance of online banking. Customers tend to increase purchases only
if they perceive that credit card number and other sensitive information is safe. The different types
of perceived risk have a significant influence on the adoption of the channel, as they become a
barrier to performing internet banking transactions. (Gerrard, 2003); Hewer and Howcroft, 1999;
(Polatoglu, 2001); (Suganthi, 2001).
One of the important barriers to electronic transactions is consumer disappointment and frustration
at violations of consumer privacy. (Gerrard, 2003) found that consumers worry that the bank may
share customer profiles with other companies inthe banking group and, thus, use the information
to try and sell additional products. E-banking users want to control all aspects of their personal
data collection (Pikkarainen, 2004). User perceptions of the credibility of security and privacy may
affect internet banking use intention (Mukherjee A. a., 2003); (Pikkarainen, 2004). (Aladwani,
2001) found that potential online banking customers ranked internet security and customers
privacy as the most important future challenges facing banks. Therefore, perceived fears of
divulging personal information and feelings of insecurity have anegative influence on internet
banking services use (Howcroft B. H., 2002).Performance risk is concerned with how well the
product will perform relative to expectations. Consumers evaluation of performance risk is based
on their knowledge and25cognitive abilities in a certain product domain (Littler D. a.,
21

2006).Asymmetry in online banking information and the lack of personal contact prevent the
consumer from correctly evaluating the characteristics of the product, decreasing confidence (Ba
S. , 2001). One of the problems with financial services is that customer sareunable to try out them
before adoption. Some banks have responded to this need by developing websites which allow
potential users to try out internet banking service. (Gerrard, 2003) The opportunity to conduct a
trial may confirm how easy it is to use internet banking and provides the necessary confidence to
consumers with high perceived performance risk. Social risk is concerned with the possibility of
attracting unfavorable attention and response from purchasing a particular product. The social
status of the consumer who uses online banking services may be affected because of the positive
or negative perceptions of internet banking services by family, acquaintances or peers (Littler D.
a., 2006). Consumers attitudes to the different methods of purchasing dependon their
characteristics, those who most value social relationships being the mostreluctant to develop a
positive attitude to internet banking. The lack of human interaction can be a barrier to the use of
technology based services.Perceived risk arises from the uncertainty that customers face when they
cannot foreseethe consequences of their purchase decisions. This uncertainty regards the value of
services, concerns about the reliability of internet and related infrastructure and thespatial and
temporal separation between users and bank personnel (Flavian, 2005). As26the perceived risk
on the use of internet banking may impair customers perception of the consequences of adopting
internet banking and thus negatively influences the adoption of such technology. Internet provides
a lot of information on the products and services offered, and a variety of financial websites where
the web-user can carry out transactions. Despite the fact that internet lowers the cost of acquiring
information, consumers also incur time costs fromusing online banking: the time of learning how
to buy on a certain banking website, the time to wait for it to respond and the additional cognitive
effort expended in this expanded search process (Littler D. a., 2006). Moreover, in the case of
internet banking the time risk may be related to the time involved in dealing with
erroneoustransactions. Furthermore, website download speed is another factor influencing online
banking adoption (Jayawardhena, 2000). The use of extensive high resolution graphics and an
inefficient host server can also increase the perceived waste of time risk for current and future
users of internet banking. Moreover, speed is also dependent on the users computing hardware
and method of connection.

Relation between risk and intention:

Studies indicated perceived risk as a critical factor and its relationship to the internet banking
adoption (MC, 2008), (Gerrard P, 2003) (Hewer P, 1999). Past study has discovered the risk
connected with fatalities misfortunes from the internet banking exchange is more noteworthy than
in customary situations (Bradley L, 2003)- (Wang Y, 2003)
22

Bauer (RA, 1960) initially presented the idea of perceived risk. He characterized risk as far as the
instability and outcomes connected with a consumer' activities. For instance, consumer
investigators characterize perceived risk as a customer's view of the indecision and unfriendly
outcomes connected with purchasing an item (or facility) (SM, 1976). Perceived risk increments
with vulnerability and size of the related negative result.
Perceived risks in a few studies have been regarded as a multidimensional theory. Prior effort has
demonstrated that perceived risk comprises of various sorts of risk, containing performance risk,
social risk, time risk, monetary risk and security risk (Jacoby J, 1972), (T, 1971), (Kaplan LB,
1974). Zimund affirmed the significance of risk connected with the chance expense of settling on
a purchase choice. It was realised that clients require more data to settle on further risky choice
(Dowling R, 1994).
Attitude
Attitude is one of the fundamental factors influencing consumers buying behavior and have,
therefore, attracted considerable attention from researchers probing the behavior of bank
customers and their relationship with these institutions. According to (Venkatesh, 2000), attitude
toward internet banking is defined as an individuals overall 21 affective reaction to using the
internet for his/her banking activities. (Fishbein, 1975), argued that attitude towards behaviour is
made up of beliefs about engaging in the behaviour and the associated evaluation of the belief.
They defined attitude as an individuals positive and negative feelings (evaluative affect) about
performing the target behavior. The attitude theory suggests that the more favorable attitude a
person has towards a given product or service, the more likely that person is to buy or use the
product or service, (Azjen, 1980). Attitudes are said to develop over time through a learning
process affected by reference group influences, past experience and personality (Assael, 1981).
(Byers, 2001) concluded that changing consumer behaviour and attitudes rather than banks cost
structure determine the adoption of internet banking. Research on consumer attitude and adoption
of electronic banking shows there are several factors predetermining a consumers attitude towards
online and mobile banking such as a persons demographic, motivation and behavior towards
different banking technologies and individual acceptance of new technology (Howcroft B. H.,
2002). Taylor and Todd (1995) suggested that the different dimensions of attitudinal belief toward
an innovation could be measured using the five perceived attributes (relative advantage,
compatibility, complexity, and trialability) of the innovation. These attributes were originally
proposed in the diffusion of innovations theory (Rogers, 1995). The importance of the internet to
users banking needs relates to the advantages that accrue to the users of the technology in
question. According to (Tornatzky, 1982) relative advantage is an important factor in determining
adoption of new innovations. In general, perceived relative advantage of an innovation is positively
related to its rate of adoption (Rogers, 1995). Agarwal and Prasad (1998) showed that relative
advantage of an innovation is positively related to its rate of adoption. Similarly, as internet
banking services allow customers to access their banking accounts from any location and at any
time of the day, it gives advantage to customers to be able to manage their finances properly and
23

in a more convenient way. Compatibility is another important dimension of the innovation

diffusion theory. In (Tornatzky, 1982) meta-analysis of innovation, they found that an innovation
was more likely to be adopted when it was compatible with the individuals job responsibilities
and value system. Internet banking has been viewed as a delivery channel that is compatible with
the profile of modern day banking customer, who is likely to be computer literate and familiar with
internet (The Straits Times, 1997). Cheung (2000) defined complexity as the degree to which an
innovation is considered relatively difficult to understand and use and found it to negatively
influence the adoption of Internet. Complexity is also considered as the exact opposite of ease of
use, which has been found to directly impact the adoption of the internet (Lederer et al., 2000).
Cooper and Zmud (1990) pointed out that a system that requires less technical skills and
operational efforts will be more likely to be adopted and in turn generate better performance. On
the importance of trial ability, (Rogers, 1995), Agarwal and Prasad (1998) stated that potential
adopters of new technology, who are allowed to experiment with it, would feel comfortable with
it and thus be more likely to adopt it. According to Tan and Teo (2000) 23 if customers are given
the chance to try the innovation, it will minimize certain unknown fears, especially when
customers found that mistakes could be rectified and thus providing a predictable situation.
Customer intention
This study defined customer intention to use online banking based on the concept of (Azjen, 1980),
which identified customer intention as the interest of individuals in using the system offered for
future banking transactions. Numerous researches have attempted identify the behavioral factors
that influence individual decisions to purchase online. Each using a framework to study the matter
has identified elements to measure intention to use. The most popular theories are: Theory of
Reasoned Action (TRA), Theory of Planned Behavior (TPB), and Technology Acceptance Model
(TAM). These theories showed intention to be a good predictor of behavior. According to stages
of change research, intention occurs along a continuum where a person initially has no intention
to act, then contemplates the value of acting, and finally prepares to act. Following these three
phases, the individual may take action; and possibly move on to the maintenance phase, in which
the action becomes an established habit (Prochaska J, 2001). In this study, intention to use online
banking service represents the strength of consumer intentions to use or re-use transactional
banking services offered via the internet by their banks. (Aderonke, 2010). Discovered that most
internet customers make use of it just because of its convenience and saves time and suitable for
all their transactions desires. More so, the network security and the security of the system when it
comes to confidentiality are the main disquiets of the consumers and institute restriction to
potential users. Customer intention to use internet banking might be unhurried with the
proclamation: "I have intention or desire to utilize Online Banking whenever I step outside to pay
my bill online later on. (Aderonke, 2010) Focused on the acknowledgement and utilization of the
internet banking benefits by managing an account client. This is unimportant notwithstanding the
tremendous ventures on the online technology by different monetary establishments everywhere
throughout the world. Customers already started in perceiving the service of internet banking
24

through the use of the internet as a major good-looking feature than any other key manufactured
goods features of the bank, customer already begin in assessing the banks based on the suitability
and luxury it offers to them (Wilson GW, 2004). Bankers now start in emerging numerous product
structures and services making use of internet application. It has been expressed that apparent
handiness and convenience are the most discriminating serious variables in anticipating whether
an innovation has a tendency to be utilized or not (FD, 1993). It was observed that convenience
had a fundamentally solid connection with intention to use internet banking technology (FD,
1989), (Eriksson K, 2005)

25

Diagram

26

Questions and Hypotheses

1: Is there any relationship between perceived ability and perceived security?
H01: There is no relationship between perceived ability and perceived security
Ha1: There is a relationship between perceived ability and perceived security
2: Is there any relationship between perceived integrity and perceived security?
H02: There is no relationship between perceived integrity and perceived security.
Ha2: There is a relationship between perceived integrity and perceived security.
3: Is there any relationship between perceived benevolence and perceived security?
H03: There is no relationship between perceived benevolence ad perceived security
Ha3: There is a relationship between perceived benevolence and perceived security
4: Is there any relationship between perceived ability and trust?
Ho4: There is no relationship between perceived ability and trust.
Ha4: There is a relationship between perceived ability and trust.
5: Is there any relationship between perceived integrity and trust?
H05: There is no relationship between perceived integrity and trust
Ha5: There is a relationship between perceived integrity and trust.
6: Is there any relationship between perceived benevolence and trust?
H06: There is no relationship between perceived benevolence and trust.
Ha6: There is a relationship between perceived benevolence and trust.
7: Is there any relationship between perceived ability and perceived privacy?
H07: There is no relationship between perceived ability and perceived privacy.
Ha7: There is a relationship between perceived ability and perceived privacy.
8: Is there any relationship between perceived integrity and perceived privacy?
H08: There is no relationship between perceived integrity and perceived privacy.
27

Ha8: There is a relationship between perceived integrity and perceived privacy/

9: Is there any relationship between perceived benevolence and perceived privacy?
H09: There is no relationship between perceived benevolence and perceived privacy.
Ha9: There is a relationship between perceived benevolence and perceived privacy.
10: Is there any relationship between perceived security and trust?
Ho10: There is no relationship between perceived security and trust.
Ha10: There is a relationship between perceived security and trust.
11: Is there any relationship between perceived privacy and trust?
H011: There is no relationship between perceived privacy and trust
Ha11: There is a relationship between perceived privacy and trust.
12: Is there any relationship between trust and privacy risk?
H012: There is no relationship between trust and perceived risk.
Ha12: There is a relationship between trust and perceived risk.
13: Is there any relationship between trust and intention?
H013: There is no relationship between trust and intention.
Ha13: There is no relation between trust and intention.
14: Is there any relationship between perceived risk and intention?
H014: There is no relationship between perceived risk and intention.
Ha14: There is a relationship between perceived risk and intention.
15: Is there any relationship between perceived usefulness of internet banking and attitude toward
using internet banking service of the physical bank?
H015: There is no relationship between perceived usefulness of internet banking and attitude
toward using internet banking service of the physical bank.
Ha15: There is a relationship between perceived usefulness of internet banking and attitude toward
using internet banking service of the physical bank.
16: Is there any relationship between perceive ease of use of internet banking and attitude toward
using internet banking service of the physical bank?
28

H016: There is no relationship between perceive ease of use of internet banking and attitude toward
using internet banking service of the physical bank
Ha16: There is a relationship between perceive ease of use of internet banking and attitude toward
using internet banking service of the physical bank
17: Is there any relationship between satisfaction with the physical bank and attitude toward using
internet banking service of the physical bank?
H017: There is no relationship between satisfaction with the physical bank and attitude toward
using internet banking service of the physical bank
Ha17: There is a relationship between satisfaction with the physical bank and attitude toward using
internet banking service of the physical bank
18: Is there any relationship between attitude toward using internet banking service of the physical
bank and intention?
H018: There is no relationship between attitude toward using internet banking service of the
physical bank and intention.
Ha18: There is a relationship between attitude toward using internet banking service of the physical
bank and intention.

THE RESEARCH DESIGN METHODS AND PROCEDURES

Research design provides the researcher with the following:

Blueprint
Plan
Guide
Framework

Research design is an outline of how an investigation will take place. A research design will
typically include how data is to be collected, what instruments will be employed, how the
instruments will be used and the intended means for analyzing data collected.
The descriptors of this research design are as follows:
Degree of Question Crystallization - In terms of the degree of question crystallization, this
is a formal study. It begins with the hypothesis, and the research questions are answered
later in this report.

29

 Data Collection Method - The data collection method included communication.

Questionnaires consisting of the research questions were distributed among our sample,
and collected by communicating with them face-to-face.

Time Dimension - According to the time dimension, this research is longitudinal study
because in this research any one can start from any point. Anyone can use this sample and
can do research again.

Topical Scope - The topical scope of this research is statistical study. Here the hypotheses
are tested quantitatively; focuses on the breadth of the research, and the findings are
generalizable.

Research Environment - The research environment of this study states that this research is
done based on field conditions. All the information is collected from the field through
survey.

Experimental Effects - This research is experimental design which is appropriate when one
wishes to discover whether certain variables produce effects in other variables.
Experimentation provides the most powerful support possible for a hypothesis of causation.

Purpose of the Study - The purpose of the study is a casual explanatory because here we
try to explain relationships among variables.
Perceptual Awareness - The participants perception of research activity falls on the actual
routine because customer gives their judgment eagerly.

SAMPLING
In order to conduct the research, we have to choose a sample that responded to our survey
questionnaire and provide us with information regarding online banking.

Unit
30

For conduct this research we choose private bank and collect information for male and female who
are online banking user age above 20. The sample includes people from various occupations and
having lifestyles.
Size
The sample size contains 50 people and from these 50 people we collect data and will be used for
this research.
Procedure
For the data collection, we used non-probability sampling. The criteria we used from nonprobability sampling are convenience sampling, which means that the researchers select any
readily available individual as respondent. The researchers collect data from wherever it seems
convenient or necessary. We choose to collect data through face-to-face communication.

INSTRUMENTS
For conducting this research, we have made 54 questions related to the 12 variables, and 3
demographic questions on gender, age and per months income of the respondents.
Variables
In total, we have 12 variables among them 11 are independent and 1 is dependent variable.
Independent Variables
Perceive Trust of the physical Bank: Under this variable 08questions
Perceived Security: Under this variable07questions
Perceived Privacy: Under this variable05questions
Perceived Ability: Under this variable03questions
Perceived Integrity: Under this variable02questions
Perceived Benevolence: Under this variable02questions
Overall satisfaction of the physical Bank: Under this variable03questions
Attitude toward using the Internet banking of the physical bank: Under this
variable05questions
Perceived usefulness of internet Banking: Under this variable04questions
Perceived ease of using internet Banking: Under this variable04questions
Perceived Risk: Under this variable08questions

31

Dependent Variables
Intention toward using internet Banking of the physical Bank: Under this variable03
questions
Scales
All constructs are measured by 7 point like-scale, having two types option anchoring from
strongly disagrees to strongly agree and very likely occur to very unlikely to occur. We have
one question with 5-point like-scale and option ranging from A significant risk to A significant
opportunity.

DATA COLLECTION
For our research, we collect the necessary data by using two methods:

Primary data collection method

Secondary data collection method.

Primary data
Primary data is any information that is collect and used for the first time.
For the research, we made a questionnaire in order to conduct the survey, and distribute the
questionnaires among our survey sample. The respondents answered the questions which they felt
are best suited by ticking on the Liker scale. This survey is conducted in order to know the views
of people regarding online banking, and get an idea about the respondents towards the research
topic.
Secondary sources of data
Secondary data are those which are already published and used data. These are the data that are
collected by other people in the past, and are kept on the web or elsewhere for others to use.
For this research, we collected secondary data from various sources, like the following,

The information available on the search engine Google.

Various research papers and articles available on the web.

32

DATA ANALYSIS
Descriptive Analysis
In the descriptive analysis of this research, there are three demographic aspects: gender, age, and
income.
Table 1 in the Appendix section of this report states that there were 37 male and 13 female out of
the 50 people surveyed.
Table 2 states that out of 50 people there were 28 people belonging to the age group 15-25 years;
20 people in the age group of 26-35 years,1 people in the age group of 36-45 years and 1 belonging
to the age group 46 and above. In total, it makes 50 people.
Table 3 shows that out of 50 people there were 29 people in the income bracket of BDT 5,00015,000; 9 in BDT 16,000-25,000; 6 in BDT 26,000-35,000 and; 6people who earn in BDT 36,000
and above.

Crosstab Analysis
Table 4 shows the cross tabulation between gender and age. It shows that 22 male and 6 female
belonged to the age group 15-25 years; 14 male and 6 female in the age group 26-35 years;
and 1male and 0 female in 36-45 years and 0 male and 1 female belong to the age group 45
and above. In total, that makes 50 people consisting of 37male and13 female.
Table 5 shows the cross tabulation between gender and income. Out of the 50 people, there were
23 male and 6 female belonging to the income bracket of BDT 5,000-15,000;7 male and 2
female to BDT 16,000-25,000; 3 male and 3 female to BDT 26,000-35,000; 4 male and 2 female
to BDT 36,000 and above.
Table 6 shows the cross tabulation between age and income. Out of the 50 people surveyed, there
were25 people of age 15-25 years earning BDT 5,000-15,000; 3 people of age 15-25 years
earning BDT 16,000-25,000;
In the age group 26-35 years, 4 people earn BDT 5,000-15,000; 6 people earn BDT 16,00025,000; 6 earn BDT 26,000-35,000; and 4 earn BDT 36,000 and above.
In the age group 36-45 years, 1 person earns BDT 36,000and above;
In the age group 46 and above years, 1 person earn BDT 36 and above;

33

Reliability Analysis
Reliability analysis is used to measure the overall consistency of the items that are used to define
a scale.
A commonly accepted rule for describing internal consistency using Cronbach's alpha is as
follows:

Cronbachs Alpha

Internal Consistency

0.9

Excellent (High-Stakes testing)

0.7 < 0.9

Good (Low-Stakes testing)

0.6 < 0.7

Acceptable/ Sufficient

0.5 < 0.6

Poor

< 0.5

Unacceptable

(Ref: Perceptions of Power by Nadim Jahangir)

The following are the reliability analysis for our research:
1. The value of Cronbachsalpha for quality of life in Table 7 is 0.617, which is a sufficient
value.
2. The value of Cronbachs alpha for self-brand congruity in Table 8 is 0.835, which is a good
value.
3. The value of Cronbachs alpha for product information in Table 9 is 0.822, which is a good
value.
4. The value of Cronbachs alpha for social images in Table 10 is 0.818, which is a good
value.
5. The value of Cronbachs alpha for good for economy in Table 11 is 0.758, which is a good
value.
6. The value of Cronbachs alpha for falsity in Table 12 is 0.688, which is a poor value.
7. The value of Cronbachs alpha for entertainment in Table 13 is 0.700, which is a good
value.

34

8. The value of Cronbachs alpha for informative-ness in Table 14 is 0.859, which is a good
value.
9. The value of Cronbachs alpha for credibility in Table 15 is 0.781, which is a good value.
10. The value of Cronbachs alpha for irritation in Table 16 is 0.818, which is a good value.
11. The value of Cronbachs alpha for attitude towards advertising in Table 17 is 0.620, which
is poor value.
12. The value of Cronbachs alpha for attitude towards advertising in Table 18 is 0.623, which
is poor value.

Hypothesis Testing
Hypothesis testing is a process by which an analyst tests a statistical hypothesis. The methodology
employed by the analyst depends on the nature of the data used, and the goals of the analysis. The
goal is to either accept or reject the null hypothesis.
A test result is called statistically significant if it has been predicted as unlikely to have occurred
by sampling error alone, according to a threshold probabilitythe significance level. Hypothesis
tests are used in determining what outcomes of a study would lead to a rejection of the null
hypothesis for a pre-specified level of significance.
Correlation Coefficient (r)

Strength of the Correlation

0.0 to 0.2

Very weak; Negligible

0.2 to 0.4

Weak; Low

0.4 to 0.7

Acceptable; Moderate

0.7 to 0.9

Strong; High

0.9 to 1.0

Very strong; Very high

(Ref: Perceptions of Power by Nadim Jahangir)

In Spearmans rho, here a Greek letter is used that is (rho) which means non-parametric measure
of statistical dependence between two variables.
If the value is not (rho) 0 and < 0.05 this means there is a no relationship between the variables.
35

If the value is (rho) 0 and < 0.05, then there is relationship between the variables.
(Ref: Edgell and Noon 1984)
Hypothesis 1:
H01: There is no relationship between perceived ability and perceived security
Ha1: There is a relationship between perceived ability and perceived security
Spearmans Rho:
In Table 19, the value of (rho) 0.428indicates that there is anacceptable and moderate
correlation between perceived ability and perceived security.
Because there is no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
Because the probability is p=0.002 which means p<0.05, it can be stated that the correlation is
statistically significant, and the alternative hypothesis is accepted.
Pearson Correlation:
The correlation coefficient (r) indicates the strength of the linear relationship between the
variables.
In Table 20, the correlation coefficient (r) is 0.502, which means that there is an acceptable and
moderate correlation between perceived ability and perceived security. The strength of the
relationship is moderate.
The significance value (p) is 0.000, which is less than the level of significance 0.05, states that
correlation is statistically significant, meaning that the correlation occurred logically.
Therefore, it can be said that there is enough evidence to suggest that the correlation observed
does exist in the population.
Hypothesis 2
H02: There is no relationship between perceived integrity and perceived security.
Ha2: There is a relationship between perceived integrity and perceived security.
Spearmans Rho:
In Table 21, the value of (rho) 0.333indicates that there is a weak or low correlation between
perceived integrity and perceived security.

36

Because there is no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
Because the probability is p=0.018, which means p<0.05, it can be stated that the correlation is
statistically significant, and the alternative hypothesis is accepted.
Pearson Correlation:
In Table 22, the correlation coefficient (r) is 0.440, which means that there is anacceptable and
moderate correlation between perceived integrity and perceived security.
Because there is no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
The significance value (p) is 0.001, which is less than the level of significance 0.05, states that
correlation is statistically significant, meaning that the correlation occurred by logically.
Therefore, it can be said that there is enough evidence to suggest that the correlation observed
does exist in the population.
Hypothesis 3
H03: There is no relationship between perceived benevolence ad perceived security
Ha3: There is a relationship between perceived benevolence and perceived security
Spearmans Rho:
In Table 23, the value of (rho) 0.481 indicates that there is an acceptable and moderate
correlation between perceived benevolence and perceived security.
Because there is no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
Because the probability is p=0.000, which means p<0.05, it can be stated that the correlation is
statistically significant, and the alternative hypothesis is accepted.

Pearson Correlation:
In Table 24, the correlation coefficient (r) is 0.482, which means that there is an acceptable and
moderate correlation between perceived benevolence and perceived security. The strength of
the relationship is moderate.
The significance value (p) is 0.000, which is less than the level of significance 0.05, states that
correlation is statistically significant, meaning that the correlation occurred logically.
37

Therefore, it can be said that there is enough evidence to suggest that the correlation observed
does exist in the population.
Hypothesis 4
Ho4: There is no relationship between perceived ability and trust.
Ha4: There is a relationship between perceived ability and trust.

Spearmans Rho:
In Table 25, the value of (rho) 0.225 indicates that there is negligible relationship between
perceived ability and trust.
Because there is no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
Because the probability is p=0.116, which means p>0.05, it can be stated that the correlation is
statistically insignificant, and the null hypothesis is accepted.
Explanation: Although Bangladeshi banks hold that ability to serve online bank service flawlessly
but sometimes unauthorized access hampers the trust of online bankers. Therefore they need to be
more aware about online transaction that may lead them to scare.so many of prefer them physical
banking rather than online banking to avoid any unpleasant situation.
Pearson Correlation:
In Table 26, the correlation coefficient (r) is 0.363, which means that there is a weak or negligible
correlation between perceived ability and trust.
Because there is no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
The significance value (p) is 0.010, which is less than the level of significance 0.05, states that
correlation is statistically significant, meaning that the correlation occurred by logically.
Therefore, it can be said that there is enough evidence to suggest that the correlation observed
does exist in the population.
Hypothesis 5
H05: There is no relationship between perceived integrity and trust
Ha5: There is a relationship between perceived integrity and trust.

38

Spearmans Rho:
In Table 27, the value of (rho) 0.202 indicates that there is a negligible correlation between
perceived integrity and trust.
Because there is no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
Because the probability is p=0.160, which means p>0.05, it can be stated that the correlation is
statistically insignificant, and the null hypothesis is accepted.
Explanation: Now a days people have trust on physical bank but people have also problem about
using online bank. People face problem during online transaction, server down problems security
problems so that many of them cant believe on their online practices and policies. Physical bank
is fair with customers but people have doubt with their online practices and policies.

Pearson Correlation:
In Table 28, the correlation coefficient (r) is 0.396, which means that there is a weak or low
correlation between perceived integrity and trust.
The significance value (p) is 0.004, which is less than the level of significance 0.05, states that
correlation is statistically significant meaning that the correlation occurred by logically.
Therefore, it can be said that there is enough evidence to suggest that the correlation observed
does exist in the population.
Hypothesis 6
H06: There is no relationship between perceived benevolence and trust.
Ha6: There is a relationship between perceived benevolence and trust.
Spearmans Rho:
In Table 29, the value of (rho) 0.327 indicates that there is a weak or low correlation between
perceived benevolence and trust.
Because there is no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
Because the probability is p=0.021, which means p<0.05, it can be stated that the correlation is
statistically significant, and the alternative hypothesis is accepted.
Pearson Correlation:
39

In Table 30, the correlation coefficient (r) is 0.455, which means that there is an acceptable and
moderate correlation between perceived benevolence and trust.
The significance value (p) is 0.001, which is less than the level of significance 0.05, states that
correlation is statistically significant meaning that the correlation occurred by logically.
Therefore, it can be said that there is enough evidence to suggest that the correlation observed
does exist in the population.
Hypothesis 7
H07: There is no relationship between perceived ability and perceived privacy.
Ha7: There is a relationship between perceived ability and perceived privacy.
Spearmans Rho:
In Table 31, the value of (rho) 0.509 indicates that there is an acceptable and moderate
correlation between perceived ability and perceived privacy.
Because there is a minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
Because the probability is p=0.000, which means p<0.05, it can be stated that the correlation is
statistically significant, and the alternative hypothesis is accepted.

Pearson Correlation:
In Table 32, the correlation coefficient (r) is 0.632, which means that there is an acceptable and
moderate correlation between perceived ability and perceived privacy.
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
The significance value (p) is 0.000, which is less than the level of significance 0.05, states that
correlation is statistically significant meaning that the correlation occurred by logically.
Therefore, it can be said that there is enough evidence to suggest that the correlation observed
does exist in the population.
Hypothesis 8
H08: There is no relationship between perceived integrity and perceived privacy.
Ha8: There is a relationship between perceived integrity and perceived privacy/
Spearmans Rho:
40

In Table 33, the value of (rho) 0.297 indicates that there is a very weak or negligible correlation
between perceived integrity and perceived privacy
Because there is no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
Because the probability is p=0.036, which means p>0.05, it can be stated that the correlation is
statistically significant, and the alternative hypothesis is accepted.
Pearson Correlation:
In Table 34, the correlation coefficient (r) is 0.380 which means that there is an moderate or
acceptable correlation between perceived integrity and perceived privacy.
Because there is no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
The significance value (p) is 0.006, which is less than the level of significance 0.05, states that
correlation is statistically significant, meaning that the correlation just occurred by logically.
Therefore, it can be said that there is enough evidence to suggest that the correlation observed
does exist in the population.

Hypothesis 9
H09: There is no relationship between perceived benevolence and perceived privacy.
Ha9: There is a relationship between perceived benevolence and perceived privacy.
Spearmans Rho:
In Table 35, the value of (rho) is 0.245 indicates that there is avery weak or negligible
correlation between perceived benevolence and perceived privacy.
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
Because the probability is p=0.086, which means p<0.05, it can be stated that the correlation is not
statistically significant, and the alternative hypothesis is rejected.
Explanation: sometimes online bank user lost money from their account because of illegal access
of other people in their account and this is a common problem among most of the online user. The
banks are bound to repay their amount if any unfavorable situation take place. In order to repay
online user need to go through some complex process. Therefore many of the respondent dont
come up with our question.
41

Pearson Correlation:
In Table 36, the correlation coefficient (r) is 0.262, which means that there is a very weak or
negligible correlation between perceived benevolence and perceived privacy.
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
The significance value (p) is 0.066, which is greater than the level of significance 0.05, states
that correlation is not statistically significant, meaning that the correlation just occurred by
chance. Therefore, it can be said that there is not enough evidence to suggest that the correlation
observed does exist in the population.
Hypothesis 10
Ho10: There is no relationship between perceived security and trust.
Ha10: There is a relationship between perceived security and trust.
Spearmans Rho:
In Table 37, the value of (rho) 0.529 indicates that there is a moderate correlation between
perceived security and trust
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
Because the probability is p=0.000, which means p<0.05, it can be stated that the correlation is
statistically significant, and the alternative hypothesis is accepted.
Pearson Correlation:
In Table 38, the correlation coefficient (r) is 0.650, which means that there is an acceptable
correlation between perceived security and trust. The strength of the relationship is strong.
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
The significance value (p) is 0.000, which is less than the level of significance 0.05, states that
correlation is statistically significant, meaning that the correlation occurred by logically.
Therefore, it can be said that there is enough evidence to suggest that the correlation observed
does exist in the population.
Hypothesis 11
H011: There is no relationship between perceived privacy and trust
42

Ha11: There is a relationship between perceived privacy and trust.

Spearmans Rho:
In Table 39, the value of (rho) 0.393 indicates that there is a weak correlation between
perceived privacy and trust
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
Because the probability is p=0.005, which means p<0.05, it can be stated that the correlation is
statistically significant, and the alternative hypothesis is accepted.
Pearson Correlation:
In Table 40, the correlation coefficient (r) is 0.449, which means that there is an acceptable
correlation between perceived privacy and trust. The strength of the relationship is strong.
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
The significance value (p) is 0.001, which is less than the level of significance 0.05, states that
correlation is statistically significant, meaning that the correlation occurred by logically.
Therefore, it can be said that there is enough evidence to suggest that the correlation observed
does exist in the population.
Hypothesis 12
H012: There is no relationship between trust and perceived risk.
Ha12: There is a relationship between trust and perceived risk.
Spearmans Rho:
In Table 41, the value of (rho) 0.121 indicates that there is a very weak correlation between
trust and perceived risk
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
Because the probability is p=.402, which means p>0.05, it can be stated that the correlation is not
statistically significant, and the alternative hypothesis is rejected.
Explanation: Trust is associated with perceive risk. In our country people have trust on physical
banking but there is always a risk associate with online bank. In online transaction many times

43

people can face server down problem, account hacking problem, security problem. Therefore
people have trust on physical bank but have also risk with online banking transaction.

Pearson Correlation:
In Table 42, the correlation coefficient (r) is 0.261, which means that there is a very weak
correlation between trust and perceived risk. The strength of the relationship is very weak.
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
The significance value (p) is 0.067, which is greater than the level of significance 0.05, states
that correlation is not statistically significant, meaning that the correlation occurred by
chance.
Hypothesis 13
H013: There is no relationship between trust and intention.
Ha13: There is no relation between trust and intention.
Spearmans Rho:
In Table 43, the value of (rho) 0.261 indicates that there is a very weak correlation between
trust and intention
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
Because the probability is p=.067, which means p<0.05, it can be stated that the correlation is not
statistically significant, and the alternative hypothesis is rejected.
Explanation: In our country most of the people mainly aged people are hard to use online banking
though they put their trust on online but they are averse to use of it.
Pearson Correlation:
In Table 44, the correlation coefficient (r) is 0.372, which means that there is a weak correlation
between trust and intention. The strength of the relationship is weak.
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
The significance value (p) is 0.008, which is less than the level of significance 0.05, states that
correlation is statistically significant, meaning that the correlation occurred by logically.
44

Hypothesis 14
H014: There is no relationship between perceived risk and intention.
Ha14: There is a relationship between perceived risk and intention.
Spearmans Rho:
In Table 45, the value of (rho) 0.257 indicates that there is a very weak correlation between
perceived risk and intention
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
Because the probability is p=.072, which means p>0.05, it can be stated that the correlation is not
statistically significant, and the alternative hypothesis is rejected.
Explanation: In our country many people using online banking though they have risk about their
transaction. Sometimes people face many problem in online banking like transaction money,
hacking account, security issues. Therefore people have negative experience about online bank so
that they dont recommend others to use online bank but they recommend other to use physical
bank and will continue to use physical bank in future.
Pearson Correlation:
In Table 46, the correlation coefficient (r) is 0.315, which means that there is a weak correlation
between perceived risk and intention. The strength of the relationship is weak.
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
The significance value (p) is 0.026, which is less than the level of significance 0.05, states that
correlation is statistically significant, meaning that the correlation occurred by logically.
Hypothesis 15
H015: There is no relationship between perceived usefulness of internet banking and attitude
toward using internet banking service of the physical bank.
Ha15: There is a relationship between perceived usefulness of internet banking and attitude toward
using internet banking service of the physical bank.

Spearmans Rho:

45

In Table 47, the value of (rho) 0.702 indicates that there is a very high correlation between
perceived usefulness of internet banking and attitude toward using internet banking service of the
physical bank.
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
Because the probability is p=.000, which means p<0.05, it can be stated that the correlation is
statistically significant, and the alternative hypothesis is accepted.
Pearson Correlation:
In Table 48, the correlation coefficient (r) is 0.777, which means that there is a high correlation
between perceived usefulness of internet banking and attitude toward using internet banking
service of the physical bank. The strength of the relationship is strong.
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
The significance value (p) is 0.000, which is less than the level of significance 0.05, states that
correlation is statistically significant, meaning that the correlation occurred by logically.
Hypothesis 16
H016: There is no relationship between perceive ease of use of internet banking and attitude toward
using internet banking service of the physical bank
Ha16: There is a relationship between perceive ease of use of internet banking and attitude toward
using internet banking service of the physical bank
Spearmans Rho:
In Table 49, the value of (rho) 0.616 indicates that there is a moderate correlation between
perceive ease of use of internet banking and attitude toward using internet banking service of the
physical bank
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
Because the probability is p=.000, which means p<0.05, it can be stated that the correlation is
statistically significant, and the alternative hypothesis is accepted.

Pearson Correlation:

46

In Table 50, the correlation coefficient (r) is 0.702, which means that there is a high correlation
between perceive ease of use of internet banking and attitude toward using internet banking service
of the physical bank. The strength of the relationship is strong.
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
The significance value (p) is 0.000, which is less than the level of significance 0.05, states that
correlation is statistically significant, meaning that the correlation occurred by logically.
Hypothesis 17
H017: There is no relationship between satisfaction with the physical bank and attitude toward
using internet banking service of the physical bank
Ha17: There is a relationship between satisfaction with the physical bank and attitude toward using
internet banking service of the physical bank
Spearmans Rho:
In Table 51, the value of (rho) 0.331 indicates that there is a moderate correlation between
satisfaction with the physical bank and attitude toward using internet banking service of the
physical bank
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
Because the probability is p=.019, which means p<0.05, it can be stated that the correlation is
statistically significant, and the alternative hypothesis is accepted.
Pearson Correlation:
In Table 52, the correlation coefficient (r) is 0.336, which means that there is a moderate
correlation between satisfaction with the physical bank and attitude toward using internet banking
service of the physical bank.
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
The significance value (p) is 0.017, which is less than the level of significance 0.05, states that
correlation is statistically significant, meaning that the correlation occurred by logically.

Hypothesis 18
47

H018: There is no relationship between attitude toward using internet banking service of the
physical bank and intention.
Ha18: There is a relationship between attitude toward using internet banking service of the physical
bank and intention.

Spearmans Rho:
In Table 53, the value of (rho) 0.524 indicates that there is a moderate correlation between
attitude toward using internet banking service of the physical bank and intention.
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
Because the probability is p=.000, which means p<0.05, it can be stated that the correlation is
statistically significant, and the alternative hypothesis is accepted.
Pearson Correlation:
In Table 54, the correlation coefficient (r) is 0.617, which means that there is a moderate
correlation between attitude toward using internet banking service of the physical bank and
intention.
Because there is a no minus (-) sign and it is a positive value, it means that it is a perfect positive
correlation.
The significance value (p) is 0.000, which is less than the level of significance 0.05, states that
correlation is statistically significant, meaning that the correlation occurred by logically.
Regression Analysis
In statistics, regression analysis is a statistical process for estimating the relationships among
variables. More specifically, regression analysis helps one understand how the typical value of the
dependent variable (or 'criterion variable') changes when any one of the independent variables is
varied, while the other independent variables are held fixed. Most commonly, regression analysis
estimates the conditional expectation of the dependent variable given the independent variables
that is, the average value of the dependent variable when the independent variables are fixed.
In Table 55, the R Square (R2) value is 0.624, which means that the dependent variable will
change 62.4%, while the other independent variables are held fixed.

Limitations of the study

48

 While preparing this research paper, there were a number of limitations faced, which
affected the results and overall execution of the survey and research.
There was a time limitation for conducting this research, and the time was not sufficient to
work properly for this research.

The sample size of 50 was not big and significant enough for the research in order to come
to a conclusion. The perception of only 50 respondents is not enough to judge the
perception of all the viewers of online advertisements.

Some of the respondents were not interested to give time to answers the questions of the
survey questionnaire, and this resulted in answers influenced by ignorance.

Some of the respondents did not want to give answer to the income related question in the
demography section of the questionnaire.

Significance of study
It is important to consider that online banking is a good addition to the world of consumer banking.
Online banking has become an accepted norm of monetary transaction. There are plenty of perks
offered by banks to customers who are perpetually short of time to visit the bank adopt internet
banking over the physically traditional visit. However along with the world of conveniences this
method of banking has a few inherent pitfalls which need to be understood in order to protect your
money and avoid complications subsequently.
Previously there have been studies and research papers on how different aspects like perceived
trustworthiness, perceived security, perceived privacy, trust, perceived risk how influence the
intentions of consumers. But this study has taken into account various kinds of aspects like
perceived usefulness of internet banking, perceived ease of using internet banking, satisfaction
with the physical bank and attitude towards using the internet banking service of the physical bank
how these variables affect the intentions of using the internet banking. Like attitude towards using
the internet banking service of the physical bank and perceived ease of using internet banking has
strong correlation. It has also analyzed how aspects like trust and perceived risk direct the
consumer intensions toward internet banking. Like the analysis state that there is weak relationship
49

between Perceived trust of the physical bank and intention toward using the internet bank of
physical bank. These results help in understanding which more influences consumers intentions
of using internet banking.

50

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60

Appendixes
DESCRIPTIVE ANALYSIS
Gender
Table 1:

Statistics
Gender
Valid

50

N
Missing

Gender
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

Male

37

74.0

74.0

74.0

Female

13

26.0

26.0

100.0

Total

50

100.0

100.0

61

Age:

Table 2:

Statistics
Age
Valid

50

N
Missing

Age
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

15-25

28

56.0

56.0

56.0

26-35

20

40.0

40.0

96.0

36-45

2.0

2.0

98.0

46 and above

2.0

2.0

100.0

50

100.0

100.0

Total

62

63

Income
Table 3:
Statistics
Income
Valid

50

N
Missing

Income
Frequency

Percent

Valid Percent

Cumulative
Percent

Valid

5000-15000

29

58.0

58.0

58.0

16000-25000

18.0

18.0

76.0

26000-35000

12.0

12.0

88.0

36000 and above

12.0

12.0

100.0

50

100.0

100.0

Total

64

65

Gender and age:

Table 4:

Case Processing Summary

Cases
Valid
N
Gender * Age

Missing

Percent
50

Total

Percent

100.0%

Percent

0.0%

50

100.0%

Gender * Age Cross tabulation

Count

Age
15-25
Male

26-35

Total

36-45

46 and above

22

14

37

13

28

20

50

Gender
Female
Total

Gender and income:

Table 5:
Case Processing Summary
Cases
Valid
N
Gender * Income

Missing

Percent
50

100.0%

Total

Percent
0

66

0.0%

Percent
50

100.0%

Gender * Income Cross tabulation

Count

Income
5000-15000

16000-25000

Total

26000-35000

36000 and
above

Male

23

37

13

29

50

Gender
Female
Total

Age and income

Table 6:
Case Processing Summary
Cases
Valid
N
Age * Income

Missing

Percent
50

100.0%

Total

Percent
0

0.0%

Percent
50

100.0%

Age * Income Cross tabulation

Count
Income
5000-15000

16000-25000

Total

26000-35000

36000 and
above

15-25

25

28

26-35

20

36-45

46 and above

29

50

Age

Total

67

Reliability
Table 7:
Perceived Trust

Case Processing Summary

N
Valid
Excludeda

Cases

Total

%
50

100.0

.0

50

100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics
Cronbach's

N of Items

Alpha
.617

Perceived Security
Table 8:
Case Processing Summary
N
Valid
Cases

Excludeda
Total

%
50

100.0

.0

50

100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics

Cronbach's

N of Items

Alpha
.835

68

Perceive Privacy
Table 9:
Case Processing Summary
N
Valid
Cases

Excludeda
Total

%
50

100.0

.0

50

100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics
Cronbach's

N of Items

Alpha
.822

Perceived Ability
Table 10
Case Processing Summary
N
Valid
Cases

Excludeda
Total

%
50

100.0

.0

50

100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics
Cronbach's

N of Items

Alpha
.818

Perceived Integrity
Table 11
69

Case Processing Summary

N
Valid
Cases

Excludeda
Total

%
50

100.0

.0

50

100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics
Cronbach's

N of Items

Alpha
.758

Perceived Benevolence
Table 12
Case Processing Summary
N
Valid
Cases

Excludeda
Total

%
50

100.0

.0

50

100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics
Cronbach's

N of Items

Alpha
.688

70

Overall Satisfaction
Table 13
Case Processing Summary
N
Valid
Cases

Excludeda
Total

%
50

100.0

.0

50

100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics
Cronbach's

N of Items

Alpha
.700

Attitude toward
Table 14
Case Processing Summary
N
Valid
Cases

Excludeda
Total

%
50

100.0

.0

50

100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics
Cronbach's

N of Items

Alpha
.859

71

Perceived usefulness of internet banking

Table 15
Case Processing Summary
N
Valid
Cases

Excludeda
Total

%
50

100.0

.0

50

100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics
Cronbach's

N of Items

Alpha
.781

Perceived Ease of using banking

Table 16
Case Processing Summary
N
Valid
Cases

Excludeda
Total

%
50

100.0

.0

50

100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics
Cronbach's

N of Items

Alpha
.818

72

Intention toward
Table 17
Case Processing Summary
N
Valid
Cases

Excludeda
Total

%
50

100.0

.0

50

100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics
Cronbach's

N of Items

Alpha
.620

Perceived Risk
Table 18
Case Processing Summary
N
Valid
Cases

Excludeda
Total

%
50

100.0

.0

50

100.0

a. Listwise deletion based on all variables in the

procedure.

Reliability Statistics
Cronbach's

N of Items

Alpha
.623

73

Correlation
Table 19
Spearmen
Perceived Ability

& Perceived Security

Correlations
Perceived

Perceived

Ability

Security

Correlation Coefficient
Perceived Ability

1.000

.428**

.002

50

50

.428**

1.000

.002

50

50

Sig. (2-tailed)
N

Spearman's rho
Correlation Coefficient
Perceived Security

Sig. (2-tailed)
N

**. Correlation is significant at the 0.01 level (2-tailed).

Table 20
Pearson:
Perceived Ability

& Perceived Security

Correlations
Perceived

Perceived

Ability

Security

Pearson Correlation
Perceived Ability

Sig. (2-tailed)

.000

N
Pearson Correlation
Perceived Security

.502**

50

50

.502**

Sig. (2-tailed)

.000

50

**. Correlation is significant at the 0.01 level (2-tailed).

74

50

Table 21
Spearmen:
Perceived Integrity & Perceived Security

Correlations
Perceived

Perceived

Integrity

Security

1.000

.333*

.018

50

50

Correlation Coefficient

.333*

1.000

Sig. (2-tailed)

.018

50

50

Correlation Coefficient
Perceived Integrity

Sig. (2-tailed)
N

Spearman's rho
Perceived Security

N
*. Correlation is significant at the 0.05 level (2-tailed).

Table 22
Pearson:
Perceived Integrity & Perceived Security
Correlations
Perceived

Perceived

Security

Integrity

Pearson Correlation
Perceived Security

Sig. (2-tailed)

.001

N
Pearson Correlation
Perceived Integrity

.440**

50

50

.440**

Sig. (2-tailed)

.001

50

**. Correlation is significant at the 0.01 level (2-tailed).

75

50

Table 23
Spearmen:
Perceived Benevolence

& Perceived Security

Correlations
Perceived

Perceived

Security

Benevolence

Correlation Coefficient
Perceived Security

1.000

.481**

.000

50

50

.481**

1.000

.000

50

50

Sig. (2-tailed)
N

Spearman's rho
Correlation Coefficient
Perceived Benevolence

Sig. (2-tailed)
N

**. Correlation is significant at the 0.01 level (2-tailed).

Table 24
Pearson:
Perceived Benevolence

& Perceived Security

Correlations
Perceived

Perceived

Security

Benevolence

Pearson Correlation
Perceived Security

Sig. (2-tailed)

.000

N
Pearson Correlation
Perceived Benevolence

.482**

Sig. (2-tailed)

50

50

.482**

.000

50

**. Correlation is significant at the 0.01 level (2-tailed).

76

50

Table 25
Spearmen:
Perceived Ability

& Perceived trust

Correlations
Perceived

Perceived trust

Ability

of the physical
bank

Correlation Coefficient
Perceived Ability

1.000

.225

.116

50

50

Correlation Coefficient

.225

1.000

Sig. (2-tailed)

.116

50

50

Sig. (2-tailed)
N

Spearman's rho
Perceived trust of the
physical bank

Table 26
Pearson
Perceived Ability

& Perceived trust

Correlations
Perceived

Perceived trust

Ability

of the physical
bank

Pearson Correlation
Perceived Ability

Sig. (2-tailed)

.010

N
Pearson Correlation
Perceived trust of the
physical bank

.363**

Sig. (2-tailed)

50

50

.363**

.010

50

**. Correlation is significant at the 0.01 level (2-tailed).

77

50

Table 27
Spearmen:
Perceived Integrity

& Perceived trust

Correlations
Perceived trust

Perceived

of the physical

Integrity

bank
Correlation Coefficient
Perceived trust of the
physical bank

1.000

.202

.160

50

50

Correlation Coefficient

.202

1.000

Sig. (2-tailed)

.160

50

50

Sig. (2-tailed)
N

Spearman's rho
Perceived Integrity

Table 28
Pearson
Perceived Integrity

& Perceived trust

Correlations
Perceived trust

Perceived

of the physical

Integrity

bank
Pearson Correlation
Perceived trust of the
physical bank

Sig. (2-tailed)

.004

N
Pearson Correlation
Perceived Integrity

.396**

Sig. (2-tailed)

50

50

.396**

.004

50

**. Correlation is significant at the 0.01 level (2-tailed).

78

50

Table 29
Spearmen
Perceived Benevolence

& Perceived trust

Correlations
Perceived trust

Perceived

of the physical

Benevolence

bank
1.000

.327*

.021

50

50

Correlation Coefficient

.327*

1.000

Sig. (2-tailed)

.021

50

50

Correlation Coefficient
Perceived trust of the
physical bank

Sig. (2-tailed)
N

Spearman's rho
Perceived Benevolence

N
*. Correlation is significant at the 0.05 level (2-tailed).

Table 30
Pearson:
Perceived Benevolence

& Perceived trust

Correlations
Perceived trust

Perceived

of the physical

Benevolence

bank
Pearson Correlation
Perceived trust of the
physical bank

Sig. (2-tailed)

.001

N
Pearson Correlation
Perceived Benevolence

.455**

50

50

**

.455

Sig. (2-tailed)

.001

50

**. Correlation is significant at the 0.01 level (2-tailed).

79

50

Table 31
Spearmen:
Perceived Ability

& Perceived Privacy

Correlations
Perceived

Perceived

Ability

Privacy

Correlation Coefficient
Perceived Ability

1.000

.509**

.000

50

50

.509**

1.000

.000

50

50

Sig. (2-tailed)
N

Spearman's rho
Correlation Coefficient
Perceived Privacy

Sig. (2-tailed)
N

**. Correlation is significant at the 0.01 level (2-tailed).

Table 32
Pearson
Perceived Ability

& Perceived Privacy

Correlations
Perceived

Perceived

Ability

Privacy

Pearson Correlation
Perceived Ability

Sig. (2-tailed)

.000

N
Pearson Correlation
Perceived Privacy

Sig. (2-tailed)

.632**

50

50

.632**

.000

50

**. Correlation is significant at the 0.01 level (2-tailed).

80

50

Table 33
Spearmen:
Perceived Integrity

& Perceived Privacy

Correlations
Perceived

Perceived

Privacy

Integrity

1.000

.297*

.036

50

50

Correlation Coefficient

.297*

1.000

Sig. (2-tailed)

.036

50

50

Correlation Coefficient
Perceived Privacy

Sig. (2-tailed)
N

Spearman's rho
Perceived Integrity

N
*. Correlation is significant at the 0.05 level (2-tailed).

Table 34
Pearson:
Perceived Integrity

& Perceived Privacy

Correlations
Perceived

Perceived

Privacy

Integrity

Pearson Correlation
Perceived Privacy

Sig. (2-tailed)

.006

N
Pearson Correlation
Perceived Integrity

.380**

50

50

.380**

Sig. (2-tailed)

.006

50

**. Correlation is significant at the 0.01 level (2-tailed).

81

50

Table 35
Spearmen
Perceived Benevolence

& Perceived Privacy

Correlations
Perceived

Perceived

Privacy

Benevolence

Correlation Coefficient
Perceived Privacy

1.000

.245

.086

50

50

Correlation Coefficient

.245

1.000

Sig. (2-tailed)

.086

50

50

Sig. (2-tailed)
N

Spearman's rho
Perceived Benevolence

Table 36
Pearson
Perceived Benevolence

& Perceived Privacy

Correlations
Perceived

Perceived

Privacy

Benevolence

Pearson Correlation
Perceived Privacy

Sig. (2-tailed)

.066

Perceived Benevolence

.262

50

50

Pearson Correlation

.262

Sig. (2-tailed)

.066

50

82

50

Table 37
Spearmen
Perceived Security

& Perceived trust

Correlations
Perceived

Perceived trust

Security

of the physical
bank

Correlation Coefficient
Perceived Security

1.000

.529**

.000

50

50

.529**

1.000

.000

50

50

Sig. (2-tailed)
N

Spearman's rho
Correlation Coefficient
Perceived trust of the
physical bank

Sig. (2-tailed)
N

**. Correlation is significant at the 0.01 level (2-tailed).

Table 38
Pearson
Perceived Security

& Perceived trust

Correlations
Perceived

Perceived trust

Security

of the physical
bank

Pearson Correlation
Perceived Security

Sig. (2-tailed)

.000

N
Pearson Correlation
Perceived trust of the
physical bank

.650**

Sig. (2-tailed)

50

50

.650**

.000

50

**. Correlation is significant at the 0.01 level (2-tailed).

83

50

Table 39
Spearmen
Perceived Privacy & Perceived trust
Correlations
Perceived trust

Perceived

of the physical

Privacy

bank
Correlation Coefficient
Perceived trust of the
physical bank

1.000

.393**

.005

50

50

.393**

1.000

.005

50

50

Sig. (2-tailed)
N

Spearman's rho
Correlation Coefficient
Perceived Privacy

Sig. (2-tailed)
N

**. Correlation is significant at the 0.01 level (2-tailed).

Table 40
Pearson
Perceived Privacy & Perceived trust
Correlations
Perceived trust

Perceived

of the physical

Privacy

bank
Pearson Correlation
Perceived trust of the
physical bank

Sig. (2-tailed)

.001

N
Pearson Correlation
Perceived Privacy

.449**

Sig. (2-tailed)

50

50

.449**

.001

50

**. Correlation is significant at the 0.01 level (2-tailed).

84

50

Table 41
Spearson
Perceived trust & Perceived risk
Correlations
Perceived trust

Perceived risk

of the physical
bank
Correlation Coefficient
Perceived trust of the
physical bank

1.000

.121

.402

50

50

Correlation Coefficient

.121

1.000

Sig. (2-tailed)

.402

50

50

Sig. (2-tailed)
N

Spearman's rho
Perceived risk

Table 42
Pearson
Perceived trust

& Perceived risk

Correlations
Perceived trust

Perceived risk

of the physical
bank
Pearson Correlation
Perceived trust of the
physical bank

Sig. (2-tailed)

.067

Perceived risk

.261

50

50

Pearson Correlation

.261

Sig. (2-tailed)

.067

50

85

50

Table 43
Spearmen:
Perceived trust

& Intention toward

Correlations
Perceived trust

Intention toward

of the physical

using internet

bank

banking of the
physical bank

Correlation Coefficient
Perceived trust of the
physical bank

1.000

.261

.067

50

50

Sig. (2-tailed)
N

Spearman's rho
Intention toward using

Correlation Coefficient

.261

1.000

internet banking of the

Sig. (2-tailed)

.067

physical bank

50

50

Table 44
Pearson
Perceived trust

& Intention toward

Correlations
Perceived trust

Intention toward

of the physical

using internet

bank

banking of the
physical bank

Pearson Correlation
Perceived trust of the
physical bank

Sig. (2-tailed)

.008

N
Intention toward using

Pearson Correlation

internet banking of the

Sig. (2-tailed)

physical bank

.372**

50

50

.372**

.008
50

**. Correlation is significant at the 0.01 level (2-tailed).

86

50

Table 45
Spearmen
Perceived risk

& Intention toward

Correlations
Intention toward

Perceived risk

using internet
banking of the
physical bank
Intention toward using

Correlation Coefficient

1.000

.257

internet banking of the

Sig. (2-tailed)

.072

physical bank

50

50

Correlation Coefficient

.257

1.000

Sig. (2-tailed)

.072

50

50

Spearman's rho
Perceived risk

Table 46
Pearson
Perceived risk

& Intention toward

Correlations
Intention toward

Perceived risk

using internet
banking of the
physical bank
Intention toward using

Pearson Correlation

internet banking of the

Sig. (2-tailed)

physical bank

Perceived risk

.315*
.026

50

50

Pearson Correlation

.315*

Sig. (2-tailed)

.026

50

*. Correlation is significant at the 0.05 level (2-tailed).

87

50

Table 47
Spearmen
Perceived usefulness of internet banking

& Attitude toward

Correlations
Attitude toward

Perceived

using the

usefulness of

internet banking internet banking

of the physical
bank
Attitude toward using the

Correlation Coefficient

internet banking of the

Sig. (2-tailed)

physical bank

Spearman's rho
Correlation Coefficient
Perceived usefulness of
internet banking

Sig. (2-tailed)

1.000

.702**

.000

50

50

.702**

1.000

.000

50

50

N
**. Correlation is significant at the 0.01 level (2-tailed).

Table 48
Pearson
Perceived usefulness of internet banking

& Attitude toward

Correlations
Attitude toward

Perceived

using the

usefulness of

internet banking internet banking

of the physical
bank
Attitude toward using the

Pearson Correlation

internet banking of the

Sig. (2-tailed)

physical bank

.000

Pearson Correlation
Perceived usefulness of
internet banking

.777**

Sig. (2-tailed)

50

50

.777**

.000

50

**. Correlation is significant at the 0.01 level (2-tailed).

88

50

Table 49
Spearmen
Perceived ease

& Attitude toward

Correlations
Attitude toward

Perceived ease

using the

of using internet

internet banking

banking

of the physical
bank
Attitude toward using the

Correlation Coefficient

internet banking of the

Sig. (2-tailed)

physical bank

Spearman's rho
Correlation Coefficient
Perceived ease of using
internet banking

1.000

.616**

.000

50

50

.616**

1.000

.000

50

50

Sig. (2-tailed)
N

**. Correlation is significant at the 0.01 level (2-tailed).

Table 50
Pearson
Perceived ease

& Attitude toward

Correlations
Attitude toward

Perceived ease

using the

of using internet

internet banking

banking

of the physical
bank
Attitude toward using the

Pearson Correlation

internet banking of the

Sig. (2-tailed)

physical bank

.000

Pearson Correlation
Perceived ease of using
internet banking

.702**

Sig. (2-tailed)

50

50

.702**

.000

50

**. Correlation is significant at the 0.01 level (2-tailed).

89

50

Table 51
Spearmen
Overall Satisfaction

& Attitude toward

Correlations
Attitude toward

Overall

using the

Satisfation of

internet banking

the physical

of the physical

bank

bank
1.000

.331*

.019

50

50

Correlation Coefficient

.331*

1.000

Sig. (2-tailed)

.019

50

50

Attitude toward using the

Correlation Coefficient

internet banking of the

Sig. (2-tailed)

physical bank

Spearman's rho
Overall Satisfation of the
physical bank

N
*. Correlation is significant at the 0.05 level (2-tailed).

Table 52
Pearson
Overall Satisfaction

& Attitude toward

Correlations
Attitude toward

Overall

using the

Satisfation of

internet banking

the physical

of the physical

bank

bank
Attitude toward using the

Pearson Correlation

internet banking of the

Sig. (2-tailed)

physical bank

Overall Satisfation of the

physical bank

.336*
.017

50

50

Pearson Correlation

.336*

Sig. (2-tailed)

.017

50

*. Correlation is significant at the 0.05 level (2-tailed).

90

50

Table 53
Spearmen
Attitude toward

& Intention toward

Correlations
Attitude toward

Intention toward

using the

using internet

internet banking

banking of the

of the physical

physical bank

bank
Attitude toward using the

Correlation Coefficient

internet banking of the

Sig. (2-tailed)

physical bank

Intention toward using

Correlation Coefficient

internet banking of the

Sig. (2-tailed)

physical bank

1.000

.524**

.000

50

50

.524**

1.000

.000

50

50

Spearman's rho

**. Correlation is significant at the 0.01 level (2-tailed).

Table 54
Pearson
Attitude toward & Intention toward
Correlations
Attitude toward

Intention toward

using the

using internet

internet banking

banking of the

of the physical

physical bank

bank
Attitude toward using the

Pearson Correlation

internet banking of the

Sig. (2-tailed)

physical bank

Intention toward using

Pearson Correlation

internet banking of the

Sig. (2-tailed)

physical bank

.617**
.000

50

50

.617**

.000
50

**. Correlation is significant at the 0.01 level (2-tailed).

91

50

Regression:

Variables Entered/Removeda
Model

Variables

Variables

Entered

Removed

Method

Perceived risk ,
Perceived
Security,
Overall
Satisfation of
the physical
bank, Perceived
Privacy,
Perceived
Benevolence,
Perceived
Integrity,
Perceived ease
1

of using internet
banking,

. Enter

Perceived trust
of the physical
bank, Perceived
Ability,
Perceived
usefulness of
internet
banking,
Attitude toward
using the
internet banking
of the physical
bankb
a. Dependent Variable: Intention toward using internet
banking of the physical bank
b. All requested variables entered.

92

Table 55
Model Summary
Model

.790a

R Square

Adjusted R

Std. Error of the

Square

Estimate

.624

.516

.60999

a. Predictors: (Constant), Perceived risk , Perceived Security, Overall

Satisfation of the physical bank, Perceived Privacy, Perceived
Benevolence, Perceived Integrity, Perceived ease of using internet
banking, Perceived trust of the physical bank, Perceived Ability,
Perceived usefulness of internet banking, Attitude toward using the
internet banking of the physical bank

ANOVAa
Model

Sum of Squares

df

Mean Square

Regression

23.514

11

2.138

Residual

14.139

38

.372

Total

37.653

49

F
5.745

Sig.
.000b

a. Dependent Variable: Intention toward using internet banking of the physical bank
b. Predictors: (Constant), Perceived risk , Perceived Security, Overall Satisfation of the physical
bank, Perceived Privacy, Perceived Benevolence, Perceived Integrity, Perceived ease of using
internet banking, Perceived trust of the physical bank, Perceived Ability, Perceived usefulness of
internet banking, Attitude toward using the internet banking of the physical bank

93

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Sig.

Coefficients
B
(Constant)

.726

.899

.201

.238

Perceived Security

-.189

Perceived Privacy

Beta
.808

.424

.132

.845

.403

.229

-.167

-.823

.416

-.194

.126

-.225

-1.547

.130

Perceived Ability

.435

.135

.514

3.212

.003

Perceived Integrity

.065

.167

.069

.391

.698

-.052

.107

-.065

-.485

.631

.016

.149

.016

.110

.913

.326

.206

.322

1.584

.122

.408

.184

.414

2.212

.033

-.213

.179

-.212

-1.190

.241

.113

.141

.092

.803

.427

Perceived trust of the

physical bank

Perceived Benevolence
1

Std. Error

Overall Satisfation of the

physical bank
Attitude toward using the
internet banking of the
physical bank
Perceived usefulness of
internet banking
Perceived ease of using
internet banking
Perceived risk

a. Dependent Variable: Intention toward using internet banking of the physical bank

94

Questionnaire
Name:- _______________________________________________________________
Phone Number/E-mail ID:- ________________________________________________
Personal Information
1. Male

Female

2. Age: 15-25

3. Income per month 5000-15000 taka

26-35

16000-25000 taka

36-45

26000-3500 taka

46 and above

36000 and above

1Strongly Disagree
2=Moderately Disagree
3=Disagree

4=Neither disagree nor Agree

5=Agree
6=Moderately Agree
7=Strongly Agree

Perceive Trust of the physical Bank

1. I trust internet banking

1 2

2. I trust my bank
3. I trust the internet for banking transactions
4. This physical bank always put my interests first
5.I trust the benefits result from the decision made by this physical
bank
6. Even without supervising, this physical bank would do the thing
right.
7. This physical bank is trustworthy
8. This physical bank keeps its promises and commitments

95

Perceived Security
1.I believe my Internet banking transaction information will not be
lost during an online session
2.I believe my Internet banking transaction information will only
reach the target bank account
3.While using Internet banking, I believe that the security system
will confirm my identity before disclosing account information
4.While using Internet banking, I believe that the security system
will confirm my identity before processing transactions
5.While using Internet banking, I believe that the security system
does not allow unauthorized access to the account
6.While using Internet banking, I believe that the security system
stops any unauthorized changes to a transaction
7.While using Internet banking, I believe that the security system
provides a secure environment in which to bank

Perceived Privacy
1.While using internet banking, I believe that I know exactly what
information is collected
2.I believe my internet banking transaction information will only be
used for the purpose of the original transaction
3.I believe my internet banking transaction information will be
shared with others with my consent
4.While using internet banking, I believe that I control the use of my
information
5.While using internet banking , I believe that I have full knowledge
of the parties that can access my online account information
Perceived Ability
1.I believe that my bank provides an excellent internet banking
service
2.I believe that my bank is processing my transaction accurately and
on time
3.I believe that my bank provides 24 hour access to internet banking

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Perceived Integrity
1.I believe that my bank is fair with its internet banking customers
2.I believe that my bank has consistent online practices and policies

Perceived Benevolence
1.I believe that my bank will repay the money if it taken from my
account through unauthorized transactions
2.I believe that my bank is acting in my best internet
Overall satisfaction of the physical Bank
1. I am happy about my decision to choose this physical bank.
2. I believe I did the right thing to choose this physical bank.
3. Overall, I am satisfied with the decision to choose this physical
bank.

Attitude toward using the Internet banking of the physical bank

1. I thing that using this internet bank is convenient for me.
1
2. To me, using this internet bank is smart
3. The experience of using this internet bank for me should be very
delightful.
4. I think that using this internet bank is constructive.
5. Using this internet bank is attractive to me.
Perceived usefulness of internet Banking

1.Using internet bank improves my financial transaction

performance
2.Using internet bank enhances my effectiveness on the financial
transactions
3.Overall, I find the internet bank useful in my financial transaction
4.Using internet bank makes it easier to do my financial transactions

Perceived ease of using internet Banking

1.It is easy for me to learn how to use internet bank
2.I find it easy to get the internet to do what I want it to do
3.My interaction with the bank is clear and understandable
4.Overall, I find the internet bank easy to use
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Intention toward using internet Banking of the physical Bank

1.I will (continue to) use this internet bank in the future
2.I will recommend other people to use this internet bank
3.I am willing to spend more time to understand how to efficiently
use this internet bank

Perceived Risk
1.I fell using internet banking still has the risk of incomplete
transaction
2.It is hard to discern the service quality of internet banking

1 2 3

3.I do not believe that my personal account can be securely

protected through the online transaction process
4.I am afraid that my password will be divulged
5.I am afraid that my idea will be embezzled.

1= Very likely to Occur

2=likely to Occur

5=Somewhat to unlikely to Occur

4=Neutral

3=Somewhat to likely to Occur

6=Unlikely to Occur
7=Very Unlikely to Occur

6.Whilst performing internet banking I would rate the risk of

financial loss as

7.Whilst performing internet banking transaction I would rate risk of

losing personal information as

1. A Significant Risk
2. --

4. -5. Significant opportunity

3. Neutral

8.My decision to perform banking transaction on the internet presents

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