Demographics On Cross Sell

126 Int. J. Electronic Customer Relationship Management, Vol. 11, No.
2, 2018
Influence of demographic variables: customers’

perception about cross-selling and up-selling for
eBanking
Neha Gupta
Marketing Department,
K.J. Somaiya Institute of Management Studies and Research,
Vidyanagar, Vidyavihar,
Mumbai 400 077, India
Email: neha_prasad2005@yahoo.com
Abstract: Purpose: This study focuses on the influence of electronic banking

(eBanking) on customer’s perception about cross-selling and up-selling
considering various demographics variables of the customers of public sector
banks (PSBs) of India. Design/methodology/approach: Data were collected
from 692 respondents by way of simple random sampling. The collected data
were analysed using cross-tabs, frequency and Chi-square testing. Findings:
It has been found that customer demographic influence variables like age
groups, annual income, qualification, gender and profession influence
cross-selling and up-selling of banking products and services. Practical
implications/limitations: The identification of the most influential demographic
variable will help to build strong and effective cross-selling and up-selling of
financial products and services. Originality/value: This study was made on the
primary data, which has provided significant analysis and results
for understanding the influence of customer demographic on perception.
Result shows that demographic variables influence customers’ perception about
cross-selling and up-selling in eBanking for PSBs of India.
Keywords: eBanking; customers’ perception; delivery channels; demographic;

cross-selling; up-selling.
Reference to this paper should be made as follows: Gupta, N. (2018)

‘Influence of demographic variables: customers’ perception about cross-selling
and up-selling for eBanking’, Int. J. Electronic Customer Relationship
Management, Vol. 11, No. 2, pp.126–141.
Biographical notes: Neha Gupta, MBA (Marketing), UGC-NET, PhD

(Management Studies), Assistant Professor (K.J. SIMSR), Mumbai, India.
Her areas of interest are services marketing, consumer behaviour, banking,
retail banking and customer relationship management.
1 Introduction
Banks have played a very prominent role in the development of the country. Globally,
banks have undergone various reforms. Information technology (IT) has helped in
increasing the speed and efficiency of banking operations by facilitating the emergence of
innovative products and new delivery channels. The role of the Reserve Bank of India as
Copyright © 2018 Inderscience Enterprises Ltd.

Influence of demographic variables 127
the driver of technology initiatives in the banking sector assumes greater importance
given the challenges posed by rapid advancements in technology. The Reserve Bank of
India has played an important role in implementation of information technology in public
sector banks (PSBs) by constituting several committees from time to time with different
objectives, headed by experts in different fields or academicians.
Competition among financial institutions is as tough as never. Customers are
knowledgeable and demanding. New products are developed, tested and launched on an
ongoing basis. Delivery channels have become more varied and complex. Faced with
such an array of challenges, banks are looking forward to modernise their business
operating models and implementing technology components to benefit fully for the next
period of growth.
Direct banking channels also known as electronic banking (eBanking) can be utilised
by banks for acquiring, tracking and serving customers through multiple channels. Even
though customers regard quality of service as the most important aspect of their banking
experience, they also value relevant, competitively priced and innovative products with
effective delivery channels. The challenge for banks, therefore, is to keep abreast of
developments in these two areas, namely competitively priced and innovative products.
Effective delivery is essential for each and every banking service.
Joseph et al. (1999) argued that the different technologies might influence customer’s
perception of service quality in different ways and called for a study on the determinants
of service quality based on the different technologies. eBanking services are not new for
the developed nation. However, it is new for developing countries like ours. Most of the
banking channels were made available in between 1985 and 1990 and some advanced
delivery channels like internet banking and mobile banking are available from 1997.
Today in India, most of the eBanking channels are ready to serve customers. But, many
of these eBanking channels are limited to urban areas only.
In India, cyber frauds have also increased in eBanking services in recent past. Hence,
IT Act has been passed in 2000 known as IT Act, 2000. This Act provides several legal
sections for electronic services. eBanking represents various banking delivery channels
such as automated teller machines (ATMs), tele-banking, internet banking, mobile
banking, SMS banking and self-service kiosk/branch lobby kiosk.
2 Literature review
Customer satisfaction is benchmarked by service quality and range of services offered by

banks. Customer demographic can be used for effective usage and cross-selling and
up-selling of products and services through delivery channels. Optimal utilisation of
product and service through these channels represents that the banks have marketed the
products and services to various groups and customers are using these channels to receive
these services. This will not only enhance the productivity but also increase the resource
optimisation of banks.
It has been found that customer satisfaction is strongly prejudiced by quality of
service (Cronin and Taylor, 1992; Cronin et al., 2000; Dabholkar et al., 2000; Spreng and
Mackoy, 1996). Levesque and McDougall (1996) studied that in retail-banking customer
intention to switch from one bank to other is majorly influenced by the service problems
and the bank’s service recovery ability. Krepapa et al. (2003), McDougall and Levesque
(2000) and Ndubisi and Wah (2005) researched that service quality dimensions of
128 N. Gupta
banking have been tested as predictors of customer satisfaction. Al-Hawari and Ward
(2006) found that customer satisfaction has an important role in understanding financial
performance in a banking automated service context.
Devlin (1995) studied the issue of distribution of retail financial services and found
that with the emergence of more heterogeneous consumer preferences dealing with
delivery of eBanking services, the importance of distribution of the service offering has
increased at a more competitive pace. The technology now exists to allow a largely
cashless society with all the resulting implications for distribution of financial services.
It was apparent the threshold of acceptance for the banking market in terms of the
innovation, which was dynamic and perhaps the main strategic question within
distribution of banking services and financial services, in general, that how quickly the
threshold would approach the boundary of the possible, given continuing technological
advances.
Joseph and Stone (2003) and Ibrahim et al. (2006) categorised eBanking into internet
banking, telephone banking and ATMs and the introduction of these electronic delivery
channels in the banking industry has received wide academic and practitioner interest
(Joseph et al., 1999; Zeithaml et al., 2002; Lee and Lin, 2005; Ibrahim et al., 2006; Sayar
and Wolfe, 2007; Ganguli and Roy, 2010). Khanna and Gupta (2015) studied factors that
influence the customer’s perception to enhance marketing efficiency and add value to
customers for banking delivery channels of PSBs. They showed that the factors such as
technology acceptability, safety, availability, user-friendliness and accessibility influence
customer perception.
Reibstein (2002) researched electronic delivery channels as the key success factor for
low-cost strategy. Recently, quality dimensions have also emerged as a strategic issue,
which contribute to the success of eBanking channels (Loonam and O’Loughlin, 2008;
Khan, 2010; Chong et al., 2010; Carlson and O’Cass, 2011). In addition, other
researchers also argue that the identification and management of quality dimensions in
electronic channels could lead to competitive advantage and long-term business success
(Parasuraman et al., 2005; Loonam and O’Loughlin, 2008). Yadav et al. (2015) studied
consumer’s intention towards internet banking adoption in Indian context by combining
two theories; theory of planned behaviour and technology acceptance model by adding
construct, i.e., perceived risk. The author showed that perceived usefulness, attitude,
subjective norm and perceived behavioural control influence the consumer’s intention to
adopt internet banking. Also, perceived risk failed to show any significant influence over
intention to adopt internet banking.
Perceived ease of use indirectly affects a customer’s desire to use internet banking
(Alsajjan and Dennis, 2009; Eriksson et al., 2005; Shen and Chiou, 2009). Eriksson et al.
(2008) talked about innovation adoption among internet banking customers. Duration of
usage has also a positive effect on perceived ease of use (Prompattanapakdee, 2009).
After comparing the attitude of mobile banking users and non-users, Jeong and Yoon
(2013) found perceived usefulness as significant in both, whereas perceived ease of use is
significant for mobile users only. Bandyopadhyay (2015) revealed that out of the 15
service quality elements, two elements, i.e., internet banking and operating hours, are
considered as attractive. Seven out of 15 elements of service quality attributes such as
customer understanding, knowledge, the right service offered by bank, safety, service
timing, physical facilities provided and materials are identified as must-be quality
elements. The remaining six elements such as courteous, responsive, dependable, prompt
service, branch location and ATM network are one dimensional in nature.
However, owing to implementation of a complex security verification mechanism to

protect online transaction security, the eBanking services had been perceived as more
complex and difficult. Echchabi (2011) concluded that perceived ease of use and
usefulness drive adoption attitude. Liao and Cheung (2002) found some more attributes
like convenience, user experience, user-friendliness, user involvement and transaction
speed, which strongly affected the customer’s perception about the usefulness of internet
banking (IB) and services. Furthermore, intention to use IB is directly dependent on
perceived usefulness. eBanking scores full in this aspect, as it is more easily accessible
than the traditional form of banking. It has already been pointed out that availability and
convenience to use a service have been regarded as important contributors in the adoption
of IB (Centeno, 2004).
Rahmath et al. (2010) studied the consumers’ perspective on internet banking
adoption and examined the impact of perceived usefulness, perceived ease of use,
consumer awareness on internet banking and perceived risk on the acceptance of internet
banking by the consumers. They suggested that perceived usefulness, perceived ease of
use, consumer awareness and perceived risk were the important determinants of online
banking adoption. Gupta and Khanna (2015) studied that PSBs have their technology-
enabled products and services at par with global banks, but the usage is not at par. Kaura
et al. (2015) provided evidence that customer satisfaction influences loyalty. They
studied the importance of quality, convenience and price fairness to achieve customer
loyalty where service offerings are similar and there is not much difference in price. They
found that customer satisfaction acts as a mediating variable between its antecedents
(except tangibility and post-benefit convenience) and customer loyalty.
Customer loyalty, whether attitudinal or behavioural, leads to customers spreading a
positive word-of-mouth to others (Lee et al., 2001). It has been an important element to
increase the firm’s profitability (Oliver, 1977). Customer loyalty has been defined as
“a deeply held commitment to re-buy or re-patronise a preferred product consistently in
the future situational influences and marketing efforts that might cause switching
behaviour” (Ndubisi, 2007). The achievement of customer loyalty in services is a
difficult task; however, the service organisations obtain several benefits from
loyal customers, positive word-of-mouth in particular (Lewis and Soureli, 2006).
Particularly, in financial services, these include an increase in revenues, purchase of
additional products and services and the spread of a positive word-of-mouth to influence
and attract new customers for the company (Reichheld, 1996; Reichheld and Earl Sasser,
1990; Schlesinger and Heskett, 1991). Accordingly, it is necessary for a company to
employ effective marketing strategies that can help the organisation to understand
customers’ needs to deliver and sustain value (Amin and Isa, 2008). Recently, customer
loyalty has been attributed to an achievement of customer satisfaction, which is a product
of delivering desirable level of service quality in financial services sector (Amin et al.,
2011).
A great extent of literature review explained how customers measure the quality of
these electronic portals is still in the early stages (Zeithaml et al., 2002; Bressolles and
Nantel, 2004; Parasuraman et al., 2005; Boshoff, 2007; Loonam and O’Loughlin, 2008;
Chong et al., 2010). Similarly, Curran and Meuter (2005) noted that consumer
perceptions of service quality vary depending on the type of self-service technology used.
In addition, Eriksson and Nilsson (2007) noted clear differences in eBanking
technologies and urged banks to consider these real differences in designing customer
contact strategies. Li and Lai (2011) expressed demographic differences with internet
130 N. Gupta
banking acceptance in their paper and explained how sex, age and technology
competency influence the adoption of eBanking; in addition, they found age and
occupation as important factors to analyse the trend of adoption of IB.
Therefore, we treated demographic variables as major criteria for our research.
Here, we consider technological factors of eBanking adoption namely technological
perceived ease of use, perceived usefulness, availability, accessibility, awareness, etc.
Perceived ease of use is person-dependent and hence varies from one individual
to another; the higher the ease of usefulness, the better the chances of finding the
services useful.
3 Research methodology
Owing to the theory-building nature of the study (Calder et al., 1981), a non-probability,
convenience-sampling technique was used to select respondents of the study.
Furthermore, non-probability convenience sampling is also a common sampling method
adopted in prior consumer behaviour research in the retail-banking context (Chau and
Ngai, 2010). Data were collected from 692 respondents by way of convenience random
sampling. The collected data were analysed using cross-tabs, frequency and Chi-square
testing. This study was made on the primary data, which has provided significant analysis
and results for understanding the influence of customer demographic variables on
customer perception. Result shows that demographic variables influence customers’
perception about cross-selling and up-selling in eBanking.
The objectives and the hypotheses of the study were kept in mind to develop a
supportive research methodology. The cities represent metros, class A, Tier I and Tier II
cities of the country. Total 692 respondents’ data were analysed out of 715 questionnaires
that were circulated. The response rate was 97%, as rigorous fieldwork was conducted to
have first-hand information.
3.1 Objectives of the study

The objectives of this study include analysing customer’s perception about cross-selling
and up-selling of banking products and services and checking the influence of
demographic variables on eBanking channels such as ATMs, internet banking and mobile
banking among various customer groups.
3.2 Hypothesis for the study

We set the following hypotheses to understand the stated objective:
Null Hypothesis (H0): The perception about cross-selling and up-selling is
independent of age groups, qualification, current profession and annual income for
marketing of products and services through delivery channels.
Alternate Hypothesis (H1): The customers’ perception about cross-selling and up-
selling is not independent of age groups, qualification, customers’ current profession
and annual income for marketing of products and services through delivery channels.
3.3 Statistical tool for analysis

The Chi-squared test of independence is used when we have two attribute variables, each
with two or more possible values. It helps us to understand how perception about cross-
selling and up-selling is influenced by demographic variables and so on. For the test of
independence; only the observed frequencies are used to calculate the expected. The
degrees of freedom in a test of independence are equal to the number of rows – 1 times
the number of columns –1. A more precise formula of H0 and alternate hypotheses is
explained in Section 4.3.3.
4 Data findings/analysis
4.1 Reliability and validity of data

To check the reliability of the questionnaire items, reliability analysis was conducted for
the scales and the applicable questionnaire. Cronbach’s alpha for customers is 0.75,
which was more than the recommended value of 0.6 for sample adequacy that proves the
questionnaire is reliable.
4.2 Respondents’ profile: customers

Figures 1 and 2 represent the respondent demographic profile. Out of 692 respondents,
406 respondents belong to Metro cities and 286 respondents are from urban areas.
Furthermore, 297 respondents are from the age groups 26–35 years. 321 respondents are
working professionals. 321 are self-employed and 271 respondents are salaried. 72.5%
respondents are male. Lastly, 609 respondents are in income group ranging more than
2 lakhs to 10 lakhs annually. It means eBanking channels are majorly preferred by young
working professionals and salaried population.
Figure 1 Customers’ demographics (see online version for colours)
4.2.1 Frequency distribution and cross-tab analysis

94.2% respondents are retail-banking customers. 98.3% respondents are using ATMs.
82.2% respondents are using internet banking. 59.4% respondents are using mobile
banking. Approximately, 71% respondents are using delivery channels for fund transfer
132 N. Gupta
and account information. 65.2% respondents are using delivery channels for bill
payments. Only 35.3% respondents are using delivery channels for buying household
stuff.
Figure 2 Respondent’s profile – customer (see online version for colours)
4.2.2 Inference statistics

Cross-tab analysis and frequency distribution have been done for basic demographics
(age groups, qualification, current profession and annual income) with respect to the
customers’ perception about cross-selling and up-selling. The outcome of the analysis is
shown in Table 1.
4.2.3 Chi-square testing

Chi-square testing was conducted for customers’ perception about cross-selling and up-
selling of innovative delivery channels and perception about synchronisation between
customer satisfaction and innovative delivery channels separately for the respective age,
qualification, current profession and annual income and the reasons attributed were
analysed.
Null Hypothesis (H0): The perception about cross-selling and up-selling is
Alternate Hypothesis (H1): The perception about cross-selling and up-selling is not
Note: Here, a – Age Groups, b – Qualification, c – Current Profession and d – Annual

Income and 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12 – represents variables for marketing
banking products and services through cross-selling and up-selling. The outcome of the
analysis is shown in Table 2.
Table 1 Cross-tabs analysis
• Out of 692 respondents 72.5% respondents are male.

• 42.9 % respondents are in the age group of 26-35 years.
Demographics
• 46.4 % respondents are professionals.

• 45.1% respondents are self-employed and 39.2% respondents are salaried.
• 41% respondents are in the annual income range of above 2 lakhs to 5 lakhs.
• 58.7 % respondents are from metro city.
• Only 37.4% respondents opined that bank informs about their products and services
while kept on hold over phone; however, 34.4% respondents have never interacted to
their banks over phone.
• 14.2%respondents did not found information about bank’s products and services while
Cross-selling and up-selling
surfing from one page to another on bank’s website.

• 15.5% respondents did not found any ticker/flash message on bank’s website.
• Approximately 36% respondents received the information about bank’s products and
services in reply SMS or through instant message.
• 9% respondents did not found bank’s toll free number on bank’s website.
• Only 20.5% respondents accepted that bank has its own social media page; however
only 15.8% respondents accepted that it entertains customer grievances.
• Only 32.2% respondents found information about bank’s products and services on
ATM slip.
• Only 26.4% respondents accepted that there is single requisition form for availing all
the delivery channels.
Table 2 Perception about cross-selling and up-selling for demographic variables
Parameters Hypothesis P value Statistics Results H0 is

Ha1: Information provided by banks 0.032 0.151 Reject
1.Bank informs about products and
services of the Bank while you are
about product and services is dependent

kept on hold (Over Telephone)
of age
Hb1: Information provided by banks 0.024 0.172 Reject
of qualification
Hc1: Information provided by banks 0.056 0.148 Accept
of current profession
Hd1: Information provided by banks 0.002 0.187 Reject
of annual income
134 N. Gupta
Table 2 Perception about cross-selling and up-selling for demographic variables (continued)

Ha2: Bank informs about products and 0.287 0.118 Accept
Banking services like Mediclaim,
and services of others (other than
2. Bank informs about products
kept on hold (Over Telephone)

Life Bancassurance, etc) while
services of others is dependent of age

Hb2: Bank informs about products and 0.043 0.165 Reject
services of others is dependent of
qualification
Hc2: Bank informs about products and 0.206 0.126 Accept
services of others is current dependent of
profession
Hd2: Bank informs about products and 0.162 0.130 Accept
services of others is dependent of annual
income
Ha3: Bank displays information about 0.001 0.196 Reject
3. Bank displays information about
products and services of the Bank
products and services is dependent of

while surfing from one page to
another (On Bank’s Website)
age
Hb3: Bank displays information about 0.000 0.290 Reject
qualification
Hc3: Bank displays information about 0.000 0.220 Reject
current profession
Hd3: Bank displays information about 0.000 0.218 Reject
annual income
Ha4: Bank provides information about 0.000 0.211 Reject
4. Bank provides information about
products and services of others is

(other than Bank) while moving
products and services of others
from one page to another (On
dependent of age
Hb4: Bank provides information about 0.000 0.265 Reject
Bank’s Website)

dependent of qualification
Hc4: Bank provides information about 0.000 0.209 Reject
dependent of current profession
Hd4: Bank provides information about 0.003 0.184 Reject
dependent of annual income
Ha5: Bank gives update about products 0.000 0.211 Reject
5. Bank gives update about products
and services through ticker or flash
and services through ticker or flash is

dependent of age
(On Bank’s Website)
Hb5: Bank gives update about products 0.000 0.261 Reject

Hc5: Bank gives update about products 0.022 0.161 Reject
Hd5: Bank gives update about products 0.005 0.177 Reject

Ha6: Bank sends information about 0.003 0.183 Reject
products and services in the reply
products and services in the reply SMS

6. Bank sends information about
is dependent of age
SMS (In Mobile Banking)
Hb6: Bank sends information about 0.001 0.207 Reject

is dependent of qualification
Hc6: Bank sends information about 0.078 0.143 Accept
is dependent of current profession
Hd6: Bank sends information about 0.300 0.117 Accept
is dependent of annual income
Ha7: Bank gives update about products 0.372 0.112 Accept
7. Bank gives update about products
and services through instant message is

message (In Mobile Banking)
and services through instant
dependent of age
Hb7: Bank gives update about products 0.221 0.137 Accept
Hc7: Bank gives update about products 0.160 0.131 Accept
Hd7: Bank gives update about products 0.145 0.132 Accept
Ha8: Bank display toll free number for 0.000 0.238 Reject
Website/Mobile Banking/Internet
8. Bank display toll free number
tele-banking is dependent of age

for tele-banking (On Bank’s
Hb8: Bank display toll free number for 0.000 0.268 Reject
tele-banking is dependent of
qualification
Banking)
Hc8: Bank display toll free number for 0.009 0.172 Reject
tele-banking is dependent of current
profession
Hd8: Bank display toll free number for 0.005 0.179 Reject
tele-banking is dependent of annual
income
Ha9: Bank has its own social media page 0.719 0.088 Accept
is dependent of age
LinkedIn, You tube)
(Facebook, Twitter,
9. Bank has its own
social media page
Hb9: Bank has its own social media page 0.095 0.153 Accept
is dependent of qualification
Hc9: Bank has its own social media page 0.237 0.123 Accept
is dependent of current profession
Hd9: Bank has its own social media page 0.196 0.127 Accept
is dependent of annual income
136 N. Gupta

Ha10: Bank’s social media page 0.022 0.161 Reject
entertains customer grievances is
entertains customer grievances
10. Bank’s social media page
dependent of age
Hb10: Bank’s social media page 0.639 0.107 Accept
Hc10: Bank’s social media page 0.028 0.158 Reject
Hd10: Bank’s social media page 0.040 0.153 Reject
Ha11: ATM slip provides information 0.000 0.224 Reject
11. ATM slip provides information
about Bank’s products/services is

about Bank’s products/services
dependent of age
Hb11: ATM slip provides information 0.006 0.190 Reject
Hc11: ATM slip provides information 0.007 0.174 Reject
Hd11: ATM slip provides information 0.005 0.179 Reject
Ha12: Bank has single requisition form 0.008 0.172 Reject
12. Bank has single requisition form
for opting all delivery channels is

for opting all delivery channels
dependent of age
Hb12: Bank has single requisition form 0.262 0.134 Accept
Hc12: Bank has single requisition form 0.034 0.155 Reject
Hd12: Bank has single requisition form 0.003 0.183 Reject
It has been found that the customers’ perception about cross-selling and up-selling
through eBanking channels is not independent of age groups, qualification, current
profession and annual income. It means reject H0 and accept H1. It has been analysed that
age group and qualification majorly influence the customer’s perception for decision
related to banking products and services. It has been understood that customers between
age groups 18 years and 45 years are using this information for making banking decision.
In addition, current profession (salaried and self-employed) also acts as one of the
important demographic variables to influence the customer perception to remain loyal
with the banking services.
This study emphasises on the influence of demographic variables on customers’

perception for eBanking. It has been found that customer demographic variables like age
groups, annual income, qualification, gender and profession influence cross-selling and
up-selling of banking products and services. Furthermore, banks can enhance
effectiveness of eBanking channels for providing information related to products and
services of banks and other banking services (like Mediclaim, Life Bancassurance, etc.).
5 Conclusion
In the Chi-square analysis and frequency distribution of perception about cross-selling

and up-selling, it is shown that perception is influenced by customers’ demographics.
The study shows that the delivery channels such as ATMs, internet banking and mobile
banking depend on the demographic profile like age groups, qualification, current
profession, gender and annual income of the population size. Marketing decision can be
taken, considering these demographic variables to increase the cross-selling and
up-selling of banking products and services.
Joseph et al. (1999) studied the influence of different technologies on customer’s
perception of service quality. Levesque and McDougall (1996) discussed the impact of
service problem on intention of retail-banking customer intention to switch from one
bank to other. However, Krepapa et al. (2003), McDougall and Levesque (2000) and
Ndubisi and Wah (2005) researched the predictors of customer satisfaction.
A great extent of literature review explained how customers measure the quality of
these electronic portals is still in the early stages (Zeithaml et al., 2002; Bressolles and
Nantel, 2004; Parasuraman et al., 2005; Boshoff, 2007; Loonam and O’Loughlin, 2008;
Chong et al., 2010). Similarly, Curran and Meuter (2005) examined the consumer
perceptions on service quality for different types of self-service technologies. Several
authors investigated the impact of perceived ease of use on a customer’s desire to use
internet banking (Alsajjan and Dennis, 2009; Eriksson et al., 2005; Shen and Chiou,
2009). Eriksson et al. (2008) talked about innovation adoption among internet banking
customers. Li and Lai (2011) used demographic variables like sex, age and technology
competency to study the influences with internet banking (IB) acceptance.
Bandyopadhyay (2015) revealed various service quality elements considered as attractive
for internet banking and operating hours. Gupta and Khanna (2015) have studied the
usage of technology-enabled products and services of PSBs in India and compared the
results with the global banks. Furthermore, Khanna and Gupta (2015) studied factors that
influence the customer’s perception to enhance marketing efficiency and add value to
customers for banking delivery channels of PSBs. Kaura et al. (2015) provided evidence
of influence of customer satisfaction on loyalty. Yadav et al. (2015) examined the
consumer’s intention towards internet banking adoption in Indian context by combining
two theories; theory of planned behaviour and perceived risks.
This study is an extension of previous researches to understand the influence of
various demographic variables on customer’s perception about cross-selling and up-
selling of PSBs of India. The uniqueness of this research is the customer perception with
respect to cross-selling and up-selling of banking products and services through
innovative delivery channels and the results are significant. In the contemporary scenario,
the outcome of this research will not only help the strategic and administrative
management but also the power users of the PSBs.
138 N. Gupta
Not only private sectors but also PSBs acknowledge the change, and almost all banks
are in the process of rolling out online banking, mobile banking through Apps and social
banking extensions to their core offerings in an effort to respond to these changing
consumer demographics. Banks are working in the direction to provide integrated
solution to fulfil most of the needs of the customers. Hence, most of the banks are
working in this direction, to provide increased usage of wide range of services offering
through these delivery channels.
6 Managerial implication
The parameters considered for the study include bank sends information about products
and services in the reply SMS (in mobile banking), ATM slip provides information about
bank’s products/services, bank gives update about products and services through ticker or
flash (On Bank’s Website), bank informs about products and services of the bank while
customers are kept on hold (Over Telephone) and bank has single requisition form for
opting all delivery channels and so on. It means effort has been made by banks to
influence the cross-selling and up-selling of banking products and services through
delivery channels.
It is often cheaper to cross-sell to their existing customers than to attract new ones,
and organisations are eager to explore more profitable opportunities among their existing
customers by cross-selling. Acquiring cost of new customers is higher than what we
spend on existing ones. However, over half of the salesperson’s time is wasted in calling
low-probability prospects who may not be willing to buy banking services. Therefore, it
is very important for the banks to identify the cross-selling potential of the customer.
It has been investigated the demographic data of the customers from which the banks can
identify the customers with cross-selling potential for several products and services.
It has been found that customer demographic variables such as age groups, annual
income, qualification, gender and current profession will help to build strong
and effective cross-selling and up-selling of financial products and services. The
identification of the most influential demographic variable will help to build strong and
effective cross-selling and up-selling strategy of financial products and services.
This study was conducted on the primary data, which has provided significant factors
of customers’ behaviour influencing eBanking usage made by the customers of PSBs of
India. These significant demographic variables may be helpful to PSBs for enhancing
effectiveness of delivery channels too. Similar studies may be made for other banking
sectors. This approach may also be helpful in studying the innovative business processes
like e-tailing, micropayments, mobile payments, etc.
7 Limitations and future research directions
Our study was limited to the customers of PSBs of India, so the findings may be more
closely applicable to PSBs only. The findings of this study may be used to test the service
quality and perception of customers for cross-selling and up-selling of banking products
and services amongst the banks. Hence, these information and analysis will assist the
banks in developing appropriate marketing strategy to offer wide range of services to
targeted customers.
References
Al-Hawari, M. and Ward, T. (2006) ‘The effect of automated service quality on Australian banks’
financial performance and the mediating role of customer satisfaction’, Marketing Intelligence
& Planning, Vol. 24, No. 2, pp.127–147.
Alsajjan, B. and Dennis, C. (2009) ‘Internet banking acceptance model: cross-market examination’,
Journal of Business Research, Vol. 63, Nos. 9–10, pp.957–963.
Amin, M. and Isa, Z. (2008) ‘An examination of the relationship between service quality perception
and customer satisfaction: a SEM approach towards Malaysian Islamic banking’, International
Journal of Islamic and Middle Eastern Finance and Management, Vol. 1, No. 3, pp.191–209.
Amin, M., Isa, Z. and Fontaine, R. (2011) ‘The role of customer satisfaction in enhancing
customer loyalty in Malaysian Islamic banks’, The Service Industries Journal, Vol.31, No. 9,
pp.1519–1532.
Bandyopadhyay, N. (2015) ‘Classification of service quality attributes using Kano’s model’,
International Journal of Bank Marketing, Vol. 33, No 4, pp.457–470.
Boshoff, C. (2007) ‘A psychometric assessment of E-S-QUAL: a scale to measure electronic
service quality’, Journal of Electronic Commerce Research, Vol. 8, No. 1, pp.101–113.
Bressolles, G. and Nantel, J. (2004) ‘Electronic service quality: a comparison of three measurement
scales’, Proceedings of the 33rd EMAC Conference, 18–21 May, Murcia.
Calder, B., Phillips, L. and Tybout, A. (1981) ‘Designing research for application’, Journal of
Consumer Research, Vol. 8, No. 2, pp.197–207.
Carlson, J. and O’Cass, A. (2011) ‘Developing a framework for understanding e-service quality,
its antecedents, consequences, and mediators’, Managing Service Quality, Vol. 21, No. 3,
pp.264–86.
Centeno, C. (2004) ‘Adoption of internet services in the acceding and candidate countries, lessons
from the internet banking case’, Telematics and Informatics, Vol. 21, No. 1, pp.293–315.
Chau, V. and Ngai, L. (2010) ‘The youth market for internet banking services: perceptions, attitude
and behavior’, Journal of Services Marketing, Vol. 24, No. 1, pp.42–60.
Chong, A.Y., Ooi, K., Lin, B. and Tan, B. (2010) ‘Online banking adoption: an empirical analysis’,
International Journal of Bank Marketing, Vol. 28, No. 4, pp.267–287.
Cronin Jr., J.J. and Taylor, S.A. (1992) ‘Measuring service quality: a reexamination and extension’,
Journal of Marketing, Vol. 56, No. 3, pp.55–68.
Cronin Jr., J.J., Brady, M.K. and Hult, G.T.M. (2000) ‘Assessing the effects of quality, value, and
customer satisfaction on consumer behavioral intentions in service environments’, Journal of
Retailing, Vol. 76, No. 2, pp.193–218.
Curran, J.M. and Meuter, M.L. (2005) ‘Self-service technology adoption: comparing three
technologies’, Journal of Services Marketing, Vol. 19, No. 2, pp.103–113.
Dabholkar, P., Shepherd, C.D. and Thorpe, D.I. (2000) ‘A comprehensive framework for service
quality: an investigation of critical conceptual and measurement issues through a longitudinal
study’, Journal of Retailing, Vol. 76, No. 2, pp.139–173.
Devlin, J.F. (1995) ‘Technology and innovation in retail banking distribution’, International
Journal of Bank Marketing, Vol. 13, No. 4, pp.19–25.
Echchabi, A. (2011) ‘Online banking prospects in Morocco: an extension of technology acceptance
model’, Journal of Internet Banking and Commerce, Vol. 16, No. 3, pp.1–13.
Eriksson, K. and Nilsson, D. (2007) ‘Determinants of the continued use of self-service technology:
the case of internet banking’, Technovation, Vol. 27, No. 4, pp.159–167.
Eriksson, K., Kerem, K. and Nilsson, D. (2005) ‘Customer acceptance of internet banking in
Estonia’, International Journal of Bank Marketing, Vol. 23, No. 2, pp.200–216.
Eriksson, K., Kerem, K. and Nilsson, D. (2008) ‘The adoption of commercial innovations in the
former Central and Eastern European markets’, The Case of Internet Banking in Estonia.
140 N. Gupta
Ganguli, S. and Roy, S.K. (2010) ‘Service quality dimensions of hybrid services’, Managing
Service Quality, Vol. 20, No. 5, pp.404–424.
Gupta, N. and Khanna, V.T. (2015) ‘Customer’s adoption for technology-enabled delivery channels
in selected public sector banks’, International Journal of Business and Management, Vol. 10,
No. 12, pp.215–225.
Ibrahim, E.E., Joseph, M. and Ibeh, K.I.N. (2006) ‘Customers’ perception of electronic service
delivery in the UK retail banking sector’, International Journal of Bank Marketing, Vol. 24,
No. 7, pp.475–493.
Jeong, B.K. and Yoon, T.E. (2013) ‘An empirical investigation on consumer acceptance of mobile
banking services’, Business and Management Research, Vol. 2, No. 1, pp.31–40.
Joseph, M. and Stone, G. (2003) ‘An empirical evaluation of US bank customer perceptions of the
impact of technology on service delivery in the banking sector’, International Journal of
Retail and Distribution Management, Vol. 31, No. 4, pp.190–202.
Joseph, M., McClure, C. and Joseph, B. (1999) ‘Service quality in the banking sector: the impact of
technology on service delivery’, International Journal of Bank Marketing, Vol. 17, No. 4,
pp.182–191.
Kaura, V., Durga Prasad, Ch.S. and Sharma, S. (2015) ‘Service quality, service convenience, price
and fairness, customer loyalty, and the mediating role of customer satisfaction’, International
Journal of Bank Marketing, Vol. 33, No. 4, pp.404–422.
Khan, M.A. (2010) ‘An empirical study of automated teller machine service quality and
customer satisfaction in Pakistani banks’, European Journal of Social Science, Vol. 13, No. 3,
pp.333–344.
Khanna, V.T. and Gupta, N. (2015) ‘Customer’s perception about banks technology for innovative
delivery channels of public sector banks (PSBs) of India’, International Journal of Business
and Management, Vol. 10, No. 2, pp.214–225.
Krepapa, A., Berthon, P., Webb, D. and Pitt, L. (2003) ‘Mind the gap: an analysis of service
provider versus customer perceptions of market orientation and the impact on satisfaction’,
European Journal of Marketing, Vol. 37, Nos. 1–2, pp.197–218.
Lee, G.G. and Lin, H.F. (2005) ‘Customer perceptions of e-service quality in online shopping’,
International Journal of Retail and Distribution Management, Vol. 33, No. 2, pp.161–76.
Lee, J., Lee, J. and Feick, F. (2001) ‘The impact of the switching costs on the customer
satisfaction–loyalty link: mobile phone service in France’, Journal of Services Marketing,
Vol. 15, No. 1, pp.35–48.
Levesque, T. and McDougall, G.H.G. (1996) ‘Determinants of customer satisfaction in retail
banking’, International Journal of Bank Marketing, Vol. 14, No. 7, pp.12–20.
Lewis, B.R. and Soureli, M. (2006) ‘The antecedents of consumer loyalty in retail banking’,
Journal of Consumer Behaviour, Vol. 5, No. 1, pp.15–31.
Li, H. and Lai, M.M. (2011) ‘Demographic differences and internet banking acceptance’,
MIS Review, Vol. 16, No. 2, pp.55–92.
Liao, Z. and Cheung, M.T. (2002) ‘Internet-based e-banking and consumer attitudes: an empirical
study’, Information &Management, Vol. 39, No. 4, pp.283–295.
Loonam, M. and O’Loughlin, D. (2008) ‘Exploring e-service quality: a study of Irish online
banking’, Marketing Intelligence and Planning, Vol. 26, No. 7, pp.759–780.
McDougall, G.H.G. and Levesque, T. (2000) ‘Customer satisfaction with services: putting
perceived value into the equation’, Journal of Services Marketing, Vol. 14, No. 5, pp.392–410.
Ndubisi, N.O. (2007) ‘Relationship marketing and customer loyalty’, Marketing Intelligence &
Planning, Vol. 25, No. 1, pp.98–106.
Ndubisi, N.O. and Wah, C.K. (2005) ‘Factorial and discriminant analyses of the underpinnings of
relationship marketing and customer satisfaction’, International Journal of Bank Marketing,
Vol. 23, No. 7, pp.542–557.
Oliver, R.L. (1977) ‘Product satisfaction as a function of prior expectation and subsequent
disconfirmation: new evidence’, in Hunt, H. and Day, R. (Eds.): New Dimensions of
Satisfaction and Complaining Behaviour, Indiana University, Bloomington, IN, pp.2–6.
Parasuraman, A., Zeithaml, V.A. and Malhotra, A. (2005) ‘E-S-QUAL: a multiple-item scale for
assessing electronic service quality’, Journal of Service Research, Vol. 7, No. 3, pp.213–235.
Prompattanapakdee, S. (2009) ‘The adoption and use of personal internet banking services in
Thailand’, The Electronic Journal on Information Systems in Developing Countries, Vol. 37,
No. 6, pp.1–31.
Rahmath, S., Kammani, A. and Date, H. (2010) ‘Customer perspectives on e-business value:
case study on internet banking’, Journal of Internet Banking and Commerce, Vol. 15, No. 1,
pp.1–13.
Reibstein, D.J. (2002) ‘What attracts customers to on-line stores, and what keeps them coming
back?’, Journal of the Academy of Marketing Science, Vol. 30, No. 4, pp.465–473.
Reichheld, F.F. (1996) The Loyalty Effect, Harvard Business School Press, Boston, MA.
Reichheld, F.F. and Earl Sasser Jr., W. (1990) ‘Zero defections: quality comes to services’,
Harvard Business Review, Vol. 68, No. 2, pp.105–111.
Sayar, C. and Wolfe, S. (2007) ‘Internet banking market performance: turkey versus the UK’,
Schlesinger, L.A. and Heskett, J.L. (1991) ‘Breaking the cycle of failure in services’,
Sloan Management Review, Vol. 32, No. 3, pp.17–28.
Shen, C. and Chiou, J. (2009) ‘The impact of perceived ease of use on internet service adoption: the
moderating effects of temporal distance and perceived risk’, Computers in Human Behavior,
Vol. 26, No. 1, pp.42–50.
Spreng, R.A. and Mackoy, R.D. (1996) ‘An empirical examination of a model of perceived service
quality and satisfaction’, Journal of Retailing, Vol. 72, No. 2, pp.201–214.
Yadav, R., Chauhan, V. and Pathank, G.S. (2015) ‘Intention to adopt internet banking in an
emerging economy: a perspective of Indian youth’, International Journal of Bank Marketing,
Vol. 33, No 4, pp.530–544.
Zeithaml, V.A., Parasuraman, A. and Malhotra, A. (2002) ‘Service quality delivery through
websites: a critical review of extant knowledge’, Journal of the Academy of Marketing
Science, Vol. 30, No. 4, pp.362–375.

Demographics On Cross Sell

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Demographics On Cross Sell

Uploaded by

Copyright:

Available Formats

126 Int. J. Electronic Customer Relationship Management, Vol. 11, No.

Influence of demographic variables: customers’

Abstract: Purpose: This study focuses on the influence of electronic banking

Keywords: eBanking; customers’ perception; delivery channels; demographic;

Reference to this paper should be made as follows: Gupta, N. (2018)

Biographical notes: Neha Gupta, MBA (Marketing), UGC-NET, PhD

Copyright © 2018 Inderscience Enterprises Ltd.

Customer satisfaction is benchmarked by service quality and range of services offered by

However, owing to implementation of a complex security verification mechanism to

3.1 Objectives of the study

3.2 Hypothesis for the study

3.3 Statistical tool for analysis

4.1 Reliability and validity of data

4.2 Respondents’ profile: customers

Figure 1 Customers’ demographics (see online version for colours)

4.2.1 Frequency distribution and cross-tab analysis

Figure 2 Respondent’s profile – customer (see online version for colours)

4.2.2 Inference statistics

4.2.3 Chi-square testing

Note: Here, a – Age Groups, b – Qualification, c – Current Profession and d – Annual

Table 1 Cross-tabs analysis

• Out of 692 respondents 72.5% respondents are male.

• 46.4 % respondents are professionals.

surfing from one page to another on bank’s website.

Table 2 Perception about cross-selling and up-selling for demographic variables

Parameters Hypothesis P value Statistics Results H0 is

about product and services is dependent

Parameters Hypothesis P value Statistics Results H0 is

kept on hold (Over Telephone)

services of others is dependent of age

products and services is dependent of

products and services of others is

from one page to another (On

products and services of others is

and services through ticker or flash is

Hb5: Bank gives update about products 0.000 0.261 Reject

Parameters Hypothesis P value Statistics Results H0 is

products and services in the reply SMS

Hb6: Bank sends information about 0.001 0.207 Reject

and services through instant message is

tele-banking is dependent of age

Parameters Hypothesis P value Statistics Results H0 is

about Bank’s products/services is

for opting all delivery channels is

This study emphasises on the influence of demographic variables on customers’

In the Chi-square analysis and frequency distribution of perception about cross-selling

7 Limitations and future research directions

You might also like