CHP- 3 LITERATURE REVIEW.

A literature review can be a precursor to the introduction of a research paper, or it can be an

entire paper in itself, acting as the first stage of large research projects and allowing the
supervisor to ascertain that the student is on the correct path.
A literature review is a critical and in depth evaluation of previous research. It is a summary and
synopsis of a particular area of research, allowing anybody reading the paper to establish why
you are pursuing this particular research. A good literature review expands on the reasons behind
selecting a particular research question.

Here are some Literature reviews related to the above research work.

1.D Mishra (1997) makes a study on the performance of commercial banks in India choosing
relevant parameters like quality of service, risk management, profitability etc. His conclusion is
that the banks should try to increase quality, balance risk management, and optimize profitability
to survive and succeed. He identifies four challenges for the bank namely competition, credit,
customer and control.

2.Gaganjot Singh (1998) in his study “New innovations in banking industry – a study of new
private sector banks” views that the new private sector banks in India are using better technology
and are offering better services to the customers. The new private banks have Emerged as a
model to the banking industry in terms of service levels, ambience, technology etc. As the
public-sector banks have already established a huge customer base, they become complacent and
are slow to become customer friendly. They are also less innovative in the use of technology-
assisted customer service. Because of their huge customer base, they feelthat they can withstand
competitions from new generation banks.

3.Stuart E. Weiner (1999) pointed out that the total number of ATM transaction has more than
doubled over years and is estimated to reach near 11 billion and total number of ATM terminals
has tripled over years. This shows that ATM cards have become another most popular non cash
instruments and its popularity has been explosively increasing throughout.
4.Mols, N. P. (2000) stated internet banking with the help of customer feedback that is in no time
helps banks to construct and keep secure relationships with their customers and diminish
operating and fixed costs makes it is easy for them to utilize electronic fund transfer and foreign.

5.Parimal Vyas (2000) studied customers’ satisfaction from the services provided by different
banks and analyzed the response of customers towards the actual time taken by banks to
complete the banking transactions. The findings of the study revealed that nationalized banks and
co-operative banks need to improve on reducing the time taken to complete banking transactions.
Comparatively the private and foreign banks take much less time for completing their
transactions. The study suggested that the nationalized commercial banks and cooperative banks
must increase the use of information technology and customer relationship management to
deliver standardized services to their target customers exchange transactions

6.Shastri (2001) analyzed the effect and challenges of new technology on banks. He found that
technology has brought a sea change in the functioning of banks and use of ATMs has increased
with the passage of time.

7.Mahadevan, S et al. (2001) examined how customer loyalty, expectation and reliability in
various Indian banking sector related to customer satisfaction. It revealed that public expectation
from banking sector and consequential demands on banks especially at operating levels have
been growing. The findings of the study were based on nine dimensions of quality which
includes reliability, response, reputations, durability etc. On the basis of the results of the study
they developed a customer satisfaction model which highlighted the need of training of
employees so that they can give the bestpossible service.

8.La Porta, R., Lopez-de-Silanes, F., Shleifer, A., (2002),A study with references to the Review
of literature shows that different researchers the Globalization of the banking business Over the
past 2 decades, most of the banks focused on opportunities in urban markets and the corporate
sector. At present changing of the globalization of the countryside is just beginning of these
transactions with bringing the tools and techniques need to develop sustainable and profitable of
businesses. Special Banking around 2.0 provides a new platform for business development. This
type of renewing sustainable community-focused banking, expanding and enhancing network
value and evolving from banking to financial solutions every bank must develop its own
distinctive business on this newly attractive platform

9.In another article James J. Mcandrew (2003) talked about the various utilities of ATMs which
has given worldwide popularity. The utilities include withdrawal of cash as per convenience of
the customers than during the banking hours at branches. Besides providing off time and off
shore services, there is reduction of cost of servicing.

10.Kayis, B. et al. (2003) examined the level of influence of TQM practices on service quality,
customer satisfaction, customer, loyalty and employee satisfaction. Here customer satisfaction
was measured by using the three items from the American Customer Satisfaction Index (ACSI)
using five point Likert Scale. The study found service quality, customer complaints, satisfaction
and loyalty as well as TQM practices and employee satisfaction in both Korean and Australian
banking industries. It also found that service quality is a partial determinant of customer
satisfaction

11.Devlin, F. James et al. (2003) conducted a study with an objective to provide an insight into
some factors which explain why customers in the retail banking sector might consider switching
from traditional methods of conducting their banking activities to internet banking either
partially or fully. An important finding was that the level of bank charges and level of over draft
interest rates were not significant in motivating individuals to internet banking. It also revealed
that the level of satisfaction with elements of the existing retail banking services have a
significant impact on their propensity to use internet banking. It also found that a high level of
satisfaction with in branch service is associated with a lower propensity to switch to internet
banking.

12.Shanker, Venkatesh et al. (2003) conducted a comparative study of customer satisfaction

level. And loyalty of online and offline environments. The results of the study they divided
customer satisfaction into two viz., service encounter satisfaction and overall customer
satisfaction. Revealed that the level of customer satisfaction for a service chosen online is same
as in the off line, but the loyalty to the service provider online is higher than that of off line. It
concluded as loyalty and satisfaction have a reciprocal relationship such that each positively
reinforces the other and this relationship between overall satisfaction and loyalty is further
strengthened online.

13.Gerrard, P. and Cunningham, B. J. (2003), conducted a study on the theme of this study dealt
with Mobile banking (m-banking) faces various types of resistance that may hinder customers‟
adoption in Egypt. This is to identify three groups of m-banking non-adopters, namely
postpones, opponents and rejecters. It explores the reasons for resisting m-banking services in
Egypt and whether it differs with regards to these customer groups.

Aaltonen, P. G. (2004) brings an awareness of the importance of the impacts of demographic

variables and of technology on satisfaction of customers and loyalty in the financial service
industry. In past studies they have verified that extremely satisfied customers are, indeed, more
loyal customers.

14.The study conducted by Lam, Yin, Shun et al. (2004) examined the mediating role of
customer satisfaction in the impact of customer value on customer loyalty and explore reciprocal
effects of customer satisfaction and loyalty on each other. It also aimed to empirically analyse a
conceptual frame work considering customer value, satisfaction and switching costs on customer
loyalty in a bank to bank context. The study found that the effect of customer satisfaction on the
two loyalty dimensions viz., recommendation and patronage are not significantly stronger than
the effects of switching costs on these constructs.

15.The empirical study conducted by Vyas, Parimal (2004) tried to measure customer
satisfaction considering the prevalent state of IT adoption among selected branches of
nationalized, private, co-operative and foreign banks located at Baroda. The total sample size of
the study was 121 customers of above categories of banks. The major finding of the study was
that there were effective implementations of e-banking services in case of private banks and
foreign banks. Whereas nationalized banks were found to have lesser degree of computerization.
It also revealed the fact that, without IT the banking sector would not be able to serve the
changing needs of the market

16.Liang, Chiung-Ju, et al. (2004) empirically studied the relations among attributes, benefits,
customer satisfaction and customer behavioural loyalty in a marketing system on the basis of
data collected form 1000 customers of Asia Trust Merchant Banking Services in Taiwan. The
study pointed out that customers buy dissimilar financial products with different benefits with
different attributes, hence the difference in the level of customer satisfaction and behavioural
consequences. It also found that the relationship marketing could effectively increase the
awareness of customer's trust and commitment.

17.Pont, M., &Mc Quilken, L. (2005) Research study was to find out the weather satisfied
customers are loyal towards the banks. In the research they concluded that there is no significant
relation between customer satisfaction and customer loyalty. They founded that even satisfied
customers are not all the time loyal. If banks want to achieve high customer satisfaction they
need to adopt the good approach because with the less costly approach banks could not get
moderate customer satisfaction. They also stated that banks should exercise and examine the
customer perceptions towards the service quality. So if the bank want to keep their existing ones
and want to attract new ones then they should continually supervise customer satisfaction and its
impact on loyalty.

18.The study conducted by Man Siu, Noel Yee et al. (2005)" was an attempt to examine
customer's service quality perceptions in internet banking as well as the impact of these on
customer satisfaction and future consumption behavior. The study was based on four dimensions
of service quality viz., credibility, efficiency, problem handling and security. The results of the
study showed that all dimensions except security are important in determining overall service
quality perceptions, credibility, problem handling and security are important on customer
satisfaction and security and efficiency are significantly associated with future consumption
behaviour.It concluded as, technically functioning websites and quick confirmations are the
essential elements in satisfying customer needs.

19.Selvam, M (2005) conducted a study titled 'Customer satisfaction of banking service an

overview' to assess the measurement criteria and to evaluate customer satisfaction of banking
services. The study selected 50 customers via, quota sampling method from five branches of 42
banks operating in the Tiruchirappalli city. One of the finding of the study is that the ATM
facility is contributed relatively maximum to the ultimate satisfaction. The study revealed that
technology adaptation process is slow in banks of that area.
20.Angelis, Vasilis A. et al. (2005) conducted a research study with an objective of determine
customer's satisfaction and also their perceived value received from the banking services -in the
country- Greece. The sample size of the study was 1470 customers selected by using quota
sampling technique and a modified form of SERVQUAL instrument was used to collect data
from them. One of the major findings of the study was that State-controlled bank customers
enjoy a higher perceived value in the case of marketing efficiency where as private bank
customer enjoy a higher perceived value in the case of professional service and effective
communications. It also revealed that state controlled banks have lower percentage of very
'pleased' and higher percentages of 'pleased' and 'displeased' customers than private banks

21.Raheem, Abdul A. (2005) conducted a study to identify the latent factors determining
satisfaction of the quality parameters in public sector banks. It pointed out four major parameters
of service quality such as, empathy, responsiveness, system and tangibility. The customer
perfection on these service quality dimensions was obtained by averaging the mean value of the
entire dimensions. The study highlighted the areas in which public sector banks need to improve
to survive the competition posed by the new entrants in the banking sector.

22.Laxman, G (2 0 0 5) analysed the performance of ATM services of Axis Bank and ascertained
the satisfaction level of ATM using customers of Axis Bank. The study identified number of
motivational factors for availing ATM services from Axis Bank. It also revealed that majority of
respondents from middle and higher income groups and above qualification holders expressed
good and very good opinion about the services while others expressed performance as average.

23.Mosad Zineldin (2005) in his study “Quality and Customer Relationship Management as
Competitive Strategy in the Swedish Banking Industry” stated that a bank had to create customer
relationships that deliver value beyond that provided by the core product. This involved added
tangible and intangible elements to the core products, thus creating and enhancing the “product
surrounding.” One necessary condition for the realization of quality was the creation of value-
added services, quality measurement and control. Thus, it was an important function to ensure
the fulfillment of given customer requirements. The key ways for building a strong competitive
position were value-added services and differentiation.
24.G.A.Aliyu (2006), Stated that the study was conducted In his article says this is research
investigates the factors influence of the consumer adoption of Electronic banking in Nigeria. It
analyzed that there is a need to conduct research on Electronic banking adoption behavior. Here,
this research fulfilled that the relevant factors determined the adoption of Electronic banking
include the level of its six factors, such as awareness, ease of use, security, cost, reluctance to
change and accessibility.

25.Vannirajan (2006) conducted a study to examine the impact of service quality dimensions on
customer satisfaction. It revealed that the important services offered by banks are traditional
services, non-traditional services, tangibles, reliability, responsiveness, assurance and empathy.
It also found that reliability and non-traditional services affect more on the customer satisfaction
level. The study concluded that the private sector banks and associates of State Bank of India are
better in providing services to the customers than the nationalist banks and co-operative banks.

26.Shashikala, P (2006)" carried out an empirical study in order to measure customer satisfaction
of telecom services providers and to examine relationship between service quality and its
variables and to derive key quality elements that could improve customer retention. SERVQUAL
scale and its dimensions were used to collect data and used discriminant analysis technique to
analyse data. The results revealed that reliability is identified as the important criterion to
determine behavioural intention. It also revealed that the service quality includes elements like
coverage, connectivity and voice clarity

27.Lopez, J., Kozloski Hart, L., &Rampersad, A. (2007) Research claimed that by using the one
of the service quality tool in which customer satisfaction was measured on the basis of ten
dimensions. Results significantly show that out of ten six dimensions namely reliability,
responsiveness, tangibles, access, communication, and credibility shows the positive impact on
customer satisfaction.

28.Molina, A., Martín-Consuegra, D., & Esteban, Á. (2007) brought to light that it is very
important to have good relations with the customers which leads to increase in business. Also in
there research they stated that satisfaction of customers is depends on service policy satisfaction,
on accessibility and on the front line employee satisfaction. So positive relationships with the
customers always lead to financial success to the bank for long run.
29.Mishra A, (2009) stated that customer satisfaction majorly depends on the provision of an
approach for the manager so that higher customer satisfaction for the future could be obtained by
the bank. Also in his research he used the demographical characteristics of the customers to
know about the satisfaction level of the customers.

30.Rod, M., Ashill, N. J., Shao, J., &Carruthers, J. (2009) research findings suggests that online
banking positively influences customer perception. So bank management focus should be on
good customer service quality in terms of reliability, responsibility, tangibility and empathic.
This study was also found to be significant that online information system quality is very
important predictor of overall banking service quality.

31.Munusamy, J., Chelliah, S., &Mun, H. W. (2010) claimed of their research shows that service
quality is a very important dimension of customer satisfaction in banking industry. All the
determinants of service quality like reliability, assurance, tangibility, empathy and
responsiveness shows significant relationship with customers. They also state that intangibility
intension is very difficult to measure then tangibility particularly in case of service quality.
Customer needs, wants, preferences change any point of time without giving some hints to
industry.

32.Ganguli, S., & Roy, S. K. (2011) Research opined that in fast driven technology world banks
should adopt the technology which can lead to customer satisfaction and loyalty. Keeping this in
mind they researched on four dimensions like customer service, technology security and
information quality, technology convenience, and technology usage easiness and reliability.
Results states that there is significant relation between customer service, technology usage
easiness and reliability and customer satisfaction. On the other hand they found the positive
relation between technology convenience and customer satisfaction. So it was found that
technology play an important role in satisfying the customer specifically in the case of banking.

33.Singh, J., &Kaur, G. (2011) research suggested that customer satisfaction is the outcome of
seven determinants namely social responsibility, employee responsiveness, appearance of
tangibles, competence, and reliability. services innovation, , positive word-of-mouth. According
to their study customer satisfaction if influenced by social responsibility, positive word-of-
mouth, and reliability. They also founded that relationship marketing is the important tool which
can significantly increase the customer satisfaction. Other factors like employee behavior, their
friendliness, politeness, cooperation, promptness, efficiency, knowledge level, trustworthiness,
and appearance also play an important role in satisfying the customer.

34.Himani Sharma, 2011) highlighted the difficulties encounter by bankers in using E-banking
products. There are two significant difficulties in use of E-banking heightened stress and
technical bottlenecks. It has observed that like customers, bankers too face difficulty in
understanding of E-banking technology. They said that no proper training has provided to them
and bank employees do not know how to operate innovative banking products. This leads to
frustration and stress. Foreign banks and private sector bank employees are keeping pace with
the technology but problem arises in public sector bank employees.

35.NormanChiliya and StanislousZindiye (2011), it focused on E-banking adoption by customers

in the special milieus of South Africa. It dealt with case of Alice, Eastern Cape, South Africa.
The bank provides the vitality of technology utilization and it has been establishing
competitiveness in special villages is unarguable. It has profound implications particularly
computer-mediated environment in the banking sector and it is widely acknowledged that
customers increasingly due to instant gratification through the use of new technologies.

36.Gulati V. P. (2011-2012), a study with references to the Review is it argued that different
researchers and experts have already discussed with various aspects of the bank computerization
like technology and Indian banking sector, channels of e-banking, technological revolution in
banking sector, IT channels and customer service etc. It observed certain issues such as
technological developments of cooperative banks, different aspects affecting the development of
co-operative banks, problems and prospects of bank computerization, responses of the
employees and customers on bank computerization, and different software solutions available for
bank computerization. Here, this research fulfilled that is an attempt to address these issues.

37.Zohra Salem and Kashif Rashid and C. L. Goi, (2011).Stated that the study was conducted In
his article says that is the study argued with Relationship between Customer Satisfaction and
Mobile Banking Adoption. Mobile banking was marked itself as an emerging technology
adopted by banks around the globe. The main objectives of this study as to identify the key
factors of mobile technology adoption which influence customer satisfaction in India. It focused
on the banking service provides upon IT application, innovative services, security, customer trust
and risk as these are the key indicators of technology adoption

38.Gupta, A., &Dev, S. (2012).opined satisfaction of customer is dependent on variable then

independent variable. These dependent variables largely depend on service quality, ambience,
involvement, accessibility and financial factors of the bank. According to the findings of the
research. The impact of nearness of bank and financial factors on customer satisfaction is not up
to the mark.

39.Ravindran, Reji Kumar, 2012 examines the factors influencing on decision of early adopters
of m-banking services in Kerala, India. Technology Acceptance Model has used to check
customer satisfaction and continuous usage adaption. There is a strong correlation observed
between service quality, satisfaction, and intention to use mobile banking. It has confirmed with
the study that after adoption of the technology customer finds more satisfaction on the quality
parameter of the service. Perceptions about the trust and risks involved in mobile banking have
adverse impact on the service satisfaction. Perceived usefulness and quality is strong predictor
than attitude in acceptance intention in TAM.

40.Sharma, N. (2012) research study used the 17 variables related to the quantitative aspects of
e-banking. Study on rural customer’s satisfaction from e-banking was found to be significant.
Research suggests that satisfactions in rural customers are quite satisfied in e-banking services.
So, in order to improve the tendency to use e-banking channels in rural areas the use of local
languages during dealings should be promoted as well as publicized. Her research also suggest
that ATM is one of the important channel out of all alternate banking channels for securing

41.Uppal R K and Poonam Rani (2012), in their study titled Customer Perception towards Better
Banking Services in India- An Empirical Study, analyzed customer perception about CRM,
reliability, accuracy, security and transparency among the customers of public sector banks,
Indian private sector banks and foreign banks in Amritsar, Punjab. They have found that most of
the customers are satisfied with banking services and that customer satisfaction can be improved
by ensuring more speed in rendering transactions and giving promptservices.

42.Robert, (2013) focused on factors influencing mobile banking adoption. Factors such as
Relative advantage, compatibility, complexity, and risk and service satisfaction are critical for
mobile banking adoption. Mobile banking adaption has become lifestyle of people and hence
commercial banks are using mobile banking to promote their services. It has been observed that
there existed some correlation between the parameters that measured adoption of mobile banking
and observability as well as complexity and indicated a weak negative correlation and weak
positive correlation respectively.

43.Suriyamurthi, S., Mahalakshmi, V., &Arivazhagan, M. (2013) stated that in the cutthroat
competition where every bank is focusing on retaining and attracting new customer, relationship
marketing is the key element which should be adopted by the banks. They also found that
banking sector is one of the major service sector and the business of banks is more or less
dependent on the customer services and satisfaction. Banks should increase their services and
make good relationship with the customer.

44.Vyas, V., &Raitani, S. (2014) opined that there are many drivers of switching behavior in the
banks. Particularly they found nine critical factors which contribute in switching the banks. One
very interesting driver is customer satisfaction in all the drivers which contribute in the switching
behavior of customers. So again we can’t ignore that customer satisfaction of the major factors
among. Banks should come out with the strategies that increase the customer’s satisfaction.

45.Pareek, V. (2014) research opined with a remark that out of several factors few causal
fundamental factors like product attributes, employee characteristics, customer convenience,
bank tangibles, cost of transactions and customer communication contributes in customer
satisfaction in Indian banks. Interestingly convenience one of the 4 P.s i.e. marketing mix was
found to be an unimportant in deciding customer satisfaction in Indian banks (studied banks).

46.Kaur, N., &Kiran, R. (2015) founded in their research which was on public, private and
foreign shows that customer are more satisfied with the services quality of the foreign banks then
the private and public banks.

47.Kundu, S., &Datta, S. K. (2015) research found regarding e-service quality, customer
satisfaction and trust they found that there is a significant relationship among e-service quality,
trust and customer satisfaction. Internet banking service quality has huge impact on trust. They
also researched that in case of internet banking privacy and fulfillment are the main factors of
service quality which have influence on trust. Also banks should be more concerned about the
privacy of individual transaction of the customers. According to Ernest and young 2012 survey
showed that price factor was the main concern for 50 percent customers.

48.Zeinalizadeh, N., Shojaie, A. A., &Shariatmadari, M. (2015) opined that out of the nine
customer satisfaction factors fees and loan, prompt service and appearance are the major factors
which have more significant impact on customer satisfaction followed by interest rate and
accessibility of bank and availability of service which have less impact on the satisfaction on the
banking customers.

49.Rahi, S. (2015) research findings show customers are more loyal towards those banks who are
facilitating internet banking services. Also good brand image build relationship between banks
and customer and enhance the customer loyalty toward bank. He also concluded that those banks
that are giving the internet banking services to their customers, loyalty of those customers are
more towards the banks. He also suggested that if the brand image also plays a significant role
between loyalty of the customers and internet banking. The role of brand image is positive in
making a positive relationship between customers and internet banking.

50.Chochol'áková, A., Gabcová, L., Belás, J., &Sipko, J. (2015) research stated that in
comparison with dissatisfied customers, satisfied customers were significantly more like by to
recommend their bank to their friends and to consider using their current bank in the future, and
they are more resistant to offers from other banks. Loyal customers are more interested in the
services of their own banks when considering investments in all the aspects such as in the
financial market, deposit their own savings to their own bank, take out a mortgage from their
own bank and use other banking products and services from their current bank. According to a
research by Ernst & Young (2012), the financial literacy of ordinary bank customers is still
relatively low, but personalized recommendations still work well here. According to the results
of our research, loyalty of customers with different intensities transforms into a potential
purchase of additional banking products. The biggest potential interest of the bank customers
was in depositing savings in the bank and in mortgage loans. The intensity of interest in the
purchase of investments and other products was relatively low.

51.Machogu, A. M., &Okiko, L. (2015) research brought to light that with e-banking
complexities on customer satisfaction. Results shows that there are factors which leads to
customer satisfaction particularly in e-banking, which is one of the very important and fast
growing way of doing banking. Factors are accessibility, convenience, security, privacy, content,
design, speed, fees and charges have influence on customer satisfaction where the other factors
notified have no significant influence.

52.Ameme, B., &Wireko, J. (2016) claimed in his research that in today’s competitive world
where technology plays a very important role and if we talk about banking sector or industry
there is a positive relationship between technology and customer satisfaction. They also stated
that satisfaction of customers is not merely introducing innovative products and services rather it
is much more than that. They also found that if the bank wants to become the market leader in
the competitive environment it must use the innovation approach in all the aspects like products
and services. Also there is a significant relationship between technological innovation and cost.
As the innovation increase the cost is also increase.