Research Proposal Assignment 1
Research Proposal Assignment 1
UNIVERSITY
College of Business and Economics
Department of Accounting
and Finance
GROUP MEMBER
1. Dagmawit Tsegaye......................BEE/6448/13
2. Aschalew Urgessa......................BEE/3340/13
4. Abel Girma..................................BEE/6752/13
Content
acknowledgements .......................................................................... II
abstract..............................................................................................VI
list of tables..........................................................................................
Chapter 3: Methodology
References
ACKNOWLEDGEMENTS
First of all we would like to thank God, for giving us health and power and the courage, to learn
or improve our knowledge, and complete this thesis.
we also would like to thank to the staff and management of the six branches found under the
four district offices of Dashen Bank in Addis Ababa for their genuine corporation in responding
the thesis questionnaires.
Abstract
This proposal reports the findings of a study conducted to investigate The Effect of Electronic
Banking service qualities on customer satisfaction: The case of Dashen Bank S.C. The study
examined electronic banking service qualities provided by Dashen Bank S.Co by taking a sample
of 370 internal and external customers of electronic banking service users using haphazard, or
convenience sampling technique from 420 branches found under the four district offices in
Addis Ababa.
The data was collected using a 5 point Likert scale questionnaire and it was analyzed and tested
using multiple regression model to show the effects of the explanatory variables; reliability,
system security. ease of use, performance and availability of electronic banking service qualities
on customer satisfaction. Based on the results of the statistical analysis, reliability, performance
and ease of use of E-banking service qualities are found to have a significant effect on customer
satisfaction in Dashen Bank. The study revealed areas of improvement with possible solutions
that can solve the identified major problem areas of electronic banking service qualities in
Dashen Bank, which includes continuous reviewing and up grading of the existing performance
of the service, reliability and ease of use characteristic of electronic banking services of Dashen
Bank., moreover, the management of Dashen Bank has to give due attention to the system
security or speed and accuracy of the system and has to make the electronic banking services
available to remote customers that cannot find the service.
Keywords: Reliability, performance, system security, ease of use, E-banking and customer
satisfaction.
List of Tables
Table 4.1 Demographic Profile of Respondents
Table 4.2 Mean and Standard Deviation
Table 4.3 Mean and Standard Deviation of Overall Customer Satisfaction
ANOVA................Analysis of Variance
DB ........................Dashen Bank
Chapter 1
Introduction
Research hypothesis
H1.the quality of E-Banking service reliability has a significant effect on customer satisfaction.
HO. the quality of E-Banking service reliability has no significant effect on customer satisfaction
H2.E-banking Service performance efficiency quality has a significant effect on customer
satisfaction
HO. E-banking Service performance efficiency quality has no significant effect on customer
satisfaction
H3. Availability of e-banking service quality has a significant effect on customer satisfaction
HO. Availability of e-banking service quality has no significant effect on customer satisfaction
H4. Ease of use of E-banking service qualities has a significant effect on customer satisfaction
HO. Ease of use of E-banking service qualities has no significant t on customer satisfaction
H5. E-banking service system security quality has a significant effect on customer satisfaction
HO.E- banking system security quality has no significant effect on customer satisfaction
E-banking is a form of banking service where funds are transferred through an exchange
of electronics signal between financial institutions, rather than exchange of cash, checks,
or other negotiable instruments Kamrul, (2009).
E-banking also known as electronic funds transfer (EFT). It is simply the use of an
electronic means to transfer funds directly from one account to another rather than by
check or cash(Malak,( 2007).The term e-banking often refers to online/internet banking
which is the use of the internet as a remote delivery channel for banking services Furs t
and Nolle,( 2002),
Types of E-Banking
Telephone Banking
Internet banking
Mobile banking
Branch networking
Amole
Customer satisfaction
Customers satisfaction in bank ) plays a more critical role in the development of the banking
industry by boosting customer satisfaction levels through reliability and tenability . Customer
satisfaction is a crucial factor in all sectors, especially in the service sector .
Customer pleasure is the support of the absolute achievements of the quality revolution.
In case of the banking sector, recognized standard scales to measure the perceived quality
of a bank service is not available. Thus providing high quality service is being taken as an
important weapon to survive and to gain and maintain competitive advantage (Bateson,
1985) cited in (Thakur , 2011).
Explanatory research is used to get clarity and define the problem at hand clearly. As an
explanatory study the researcher aims at establishing the relationship between electronic
banking service qualities and customer satisfaction so as to add to the existing literature
on the subject matter.
Descriptive designs were used to describe the current state of the effects of e-banking
service qualities on customer satisfaction in Dashen Bank S.Co.
3.2. Research approach
The selections of the sample respondents were made using haphazard or convenience sampling
techniques. Out of the 420 branches under the four district offices in Addis Ababa; taking the
relative size, year of operation of the branches, cost and availability of time for the study into
consideration, six branches namely Amoudi ,Beklobet ,Piazza, Megenagna,AfricaAndinet ,and
Tana branches were selected for the study.
In order to make generalizations with confidence about the case under investigation, the
appropriate sample size was considered. The sampling design for this population was
haphazard or convenience sampling technique.
3.3. 5 source of Data and collection procedures
Quantitative and qualitative data were gathered from both primary and secondary data
sources. While the study basically depended on primary sources of data from e-banking service
users of Dashen Bank internal and external customers, it also used secondary sources of data to
fill the gap. The primary data was collected from customers through a five point Likert scale
type of questionnaires. Primary data are described as those items that are original to the
problem under investigation. This primary data was collected from respondents sampled for
the study .
o Primary data are necessary in order to get relevant, original and reliable first-hand
information about the problem under study. Questionnaires are the major tool of
capturing the primary data because of its advantages over the other methods and its
efficiency or ability to capture more information from the source.
o Secondary data were gathered from the available literatures, journals, reports and
documents written about the available services of E-banking in Dashen Bank. Secondary
data’s like reports,journals and written papers are also used in order to get information
that are not possible to find in primary data’s.
CHAPTER FOUR
Male 99 26.5%
36-45 38 10.3%
Amole 30 8.1%
The fact that ATM machines work 24 hours a day and 7 days a week even when the banks are
closed on weekends the use of ATM technology is highly convenient for customers and users.
Bank customers can easily obtain cash from their accounts without having to be physically
present at the bank premises. convenience, the ATM
Table 4.3 mean and Standard Deviation of overall customer satisfaction
N Mean Std.derivation
Summary
The primary objective of this study was to examine the effect of e-banking service
qualities on customer satisfaction in the case of Dashen Bank S.Co.five determinants of
Electronic banking service quality dimensions were used. These are reliability,
transaction performance, service security, ease of use and availability. Hence, this study
has attempted to identify which dimension has the highest influence on customer
satisfaction of e banking service qualities of Dashen Bank S.co..
The study has also tried to test the hypothesis stated on the empirical literature review
part. The demographic analysis of respondents revealed that the majority of the
customers of e banking service of Dashen Bank are male and most of the respondents fall
under the age bracket of 26-35 years which means that e-banking service customers of
Dashen Bank are dominated by the young groupers far as the educational background and
occupation of respondents are concerned ,most of the respondents are diploma holders
and above which indicates that educated persons highly use electronic banking services
than illiterates. Government and private organization employees constitute the highest
number of respondents and among the various types of E-banking services
ATM takes the largest share to be used by respondents.The researcher used the
descriptive statistical methods such as mean, standard deviation and also correlation and
regression methods to understand the relationship between dependent variable, customer
satisfaction and independent variables performance, reliability ,ease of use, system
security and availability to analyze the data collected from respondents using a
questionnaire.
According to the results of the study, all of the explanatory variables have an effect on
customer satisfaction but reliability ,ease of use and transaction performance are found to
have the highest impact on customer satisfaction.
5.1.2. Conclusion
Customer satisfaction is the major factor contributing to the success of the service sector.
Ebanking has become a major facility required by the existing and potential customers.
All the service sectors depend on customer and their satisfaction and the banks are no
exception.
One of the ways for achieving high customer satisfaction and gaining the loyalty of
customers for banks is to offer high quality services. In this research the level of
satisfaction of customers with the different quality dimensions pertaining to the
theoretical model was evaluated. Accordingly, the major findings are presented as
follows:
Descriptive analysis revealed that the majority of current e-banking users are youth
between the age of 18-35, occupationally employee at government and private
organization. Educationally, the respondents were predominantly degree holders.
Customer satisfaction on e-banking is above satisfactory level with mean value of 3.30 on
a 5 Likert scale out of the e-banking service quality dimensions reliability (mean of 3.76),
service security (mean of 3.64), ease of use (mean of 3.67) and performance (mean of
3.5) are the majors to improve e banking services and customer satisfaction.
As it was described in the report findings adjusted R-square values for the regression
model was 0.587. This indicates the explanatory variables; reliability, transaction
efficiency, service security, performance and ease of use in this study explain
approximately about 59 percent of the variation in the level of customer satisfaction. The
remaining 41 percent of the variation in the level of customer satisfaction of are
explained by other variables which are not included in the model.
Electronic banking services have become one of the typical banking strategies globally.
In spite of it numerous advantages there have been some challenges which hinders its
optimum usage both to the public and the bank themselves. The complexities associated
with e-banking investment are so large that a single study could not discover all. Again,
due to limited resources and time this study considers only a sample of six branches of
Dashen bank S.Co even though the study could have covered a broad setting.
This study also investigates the dimensions of e-banking service quality that has major
effects on customer satisfaction of Dashen Bank S.co. But, the variables included in the
study were not exhaustive. Future researchers could include other variables which are not
included under this study.
The researcher also recommends that funds be made available for the study to be
replicated in the other banks since the effect of electronic banking services have a great
effect on customer satisfaction. Recommendations from such a study would lead to a
much better administration and investment to increase the level of electronic banking
services qualities for economic growth and development of the society at large.
The research take about one month .since the group members take classified part and do the
research in cordination the research turn out to be organized .
The cost estimates are not precise since we did the research at local branch of dashen bank.
The transport cost,paper cost, time cost and human resource costs are elaborated.
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