Impact of ICT (online services) on customer satisfaction: A study of Pakistan’s Banking Sector

1. Impact of ICT (online services) on
customer satisfaction: A study of
Pakistan’s Banking Sector
Faisal Imran
MS(IS&T)
Quaid-i-Azam university
Islamabad

3. This will examine the impact of ICT (online service) on customer
satisfaction in Pakistan’s banking sector. 12 local and 12 foreign
banks will be selected for this study. The data/Survey will tested
by applying different statistical techniques. The results of the
research will led to the conclusion that ICT (online services) has
positive/Negative impact on customer satisfaction.
Research Problem

4. ICT Introduction

5.  IT is a general term that describes any technology that
helps to produce, manipulate process, store,
communicate, and/or disseminate information(William and
Sawyar (2005))
 IT within a short span of time has become the necessity of
every organization
 IT has given a new meaning to the word “Convenience”
 IT has drastically changed the business landscapes all over
the world
 word “IT” has become the “Catchword” of the modern
life today
Introduction

6. ICT Pakistan: Introduction

7.  IT is being used in all government and private organizations for
different tasks
 IT ministry is responsible for monitoring all the IT related
issues (Kazmi, 2003;Rizvi, 2005)
 Automated Teller Machine (ATM) (Don Wetzel developed ATM
in 1973 and it was first installed at Chemical Bank in New
York(Shelly et. al. (2004))
 ATM’s introduced the power of computer technology to the
general public and made banking convenient for consumers
ICT Pakistan: Introduction

8. ICT in Pakistan’s Banking

9.  There is a phenomenal progress in banking sector of Pakistan over
last decade
 It recorded an increase of 99% growth in profit in only one year, i.e.
2005 (Mahmood, 2006; The Dawn, March 21, 2006)
 NBP, HBL, MCB, ABL,UBL are considered five large banks and are
dominant in the banking industry
 Most of the local banks are in private sector now
 The introduction of computer in banks in Pakistan started in 1965
 Habib Bank, United Bank and Muslim Commercial Bank started
acquiring computers to automate their banking work in 1965
ICT in Pakistan’s Banking

10.  The most recent automated banking systems like Misys, Sibel,
and Fidility etc are being installed in many of the Pakistani
banks (Kazmi 2004)
 Due to entry of Islamic banking sector and other factors, banks
are competing for market share with each other
 The success of banking organization rests with the success in
customer loyalty and retention
 Customer satisfaction is very important issue that is being
addressed by banking organizations
ICT in Pakistan’s Banking

11. Research Method

12.  After available literature a questionnaire will be developed
 And based on these hypothesis are created
 The data/Survey will tested by applying different statistical
techniques to prove the hypothesis
 Descriptive method is selected
 Defines descriptive method as involving collection of data in
order to test hypothesis or to answer questions concerning
the current status of the subject of the study (Gay 1976)
Research Method

13. Unit of Analysis

14.  Unit of analysis shapes what type of data you should
collect for your study and who you collect it from
 We are interested in studying customer’s satisfaction
in online services of Pakistani banks
 unit of analysis is the individual
Unit of Analysis

15. Theory

16.  We examined the previous research conducted on
our topic
 Once we develop hypotheses, it is time to test them
in the data collection and analysis phase of our
research
 So Theory is deductive
Theory

17. Population

18.  In this research problem population is customers
from Pakistan’s banking sector using online services
Population

19. Variables

20.  A variable is a quantity that can vary
 A variable is a measurable representation of an
abstract construct
Following are the variables in this research problem
 Customer Satisfaction (Dependent Variable)
 ICT(Online Services) –Independent Variables
Variables

21.  We conceptualize a customer’s stratification
consisting of two dimensional constructs
 Online service
 Communication rate
So we say Multidimensional constructs applied
Constructs

22. Hypothesis

23.  Hypotheses are designed to be empirically testable
 May be rejected if not supported by empirical observations
 Goal of hypothesis testing is to infer about the validity of the
corresponding propositions
Hypothesis

24. Research Hypothesis (1)
“There has been substantial increase with respect to customer
satisfaction in the given sector, after implementation of ICT
(online services).”
Research Hypothesis (2)
“The change with respect to customer satisfaction in given
sector after implementation of ICT (online services) is not the
same”
Hypothesis

25. Social Theory Mapping

26.  IT usage is increasing gradually. Though in the beginning
Pakistani government was slow in adoption and diffusion of IT
but now it is at forefront of all government priorities
 Now all banks provide online services to its customers and all
branches are connected through ICT (online services)
 1-Link and MNET is an example where multiple banks
connected to each other and centralized services (ATM) are
offered
 In this study we examine the adoption of ICT (online services)
by customers and their satisfaction about ICT (online services)
 Innovation diffusion theory is applied on this problem
Social Theory Mapping

27. Sampling

28.  A statistical process of selecting a subset (called a
“sample”) of a population of interest for purposes of
making observations and statistical inferences about that
population
 We cannot study entire populations because of feasibility
and cost constraints
 Probability sampling is selected in current research
problem where every customer with online services has
chance to select
 Simple random sampling is used to select customers
Sampling