ABSTRACT

The paper is aiming to develop a scale to measure perceived service and to derive the relationship between perceived service and customer satisfaction in the context of Internet banking service provided by the Indian Public sector banks. In the final survey a total of 499 data collected from the customers of five selected PSBs was analysed. From 39 initial items 6 items were dropped as they had a R2 value less than 0.450. In the final structure of perceived service, privacy and availability were identified as the most important dimensions. Responsiveness, customization and trust were the dimensions which had found to affect the perceived service to moderate extent. Reliability, site aesthetics, technical performance and ease of use are the constructs which has the lowest weightage in determining perceived quality of service for Internet banking. The satisfaction construct was checked for convergent validity separately. The research implies that customer satisfaction can be enhanced by providing better services to the customers. Special care should be taken to improve the service in those constructs of perceived service which has a very high loading such as privacy and availability of the banking website.

Key Words: Internet Baking, Satisfaction, Reliability, SEM