Structural Equation Model to Evaluate Demographic Factors Influencing Customer Satisfaction with Internet Banking Services in India

Abstract

Advancement in technology and increased competition led by financial liberalization has changed theway Indian Banks used to operate and deliver services to their customers in all these years. Investment in technologyenables the banks to ensure operational excellence and customer satisfaction, which directly or indirectly contribute towards their profitability. Therefore, a constantevaluation of customer satisfaction and the demographic factors that influence it becomes imperative for banks. In this study, the influence of demographic variables on different indicators of consumer satisfaction with internet banking services in India is examined. This is empirical research in which data been gathered from customers of several banks in the Delhi NCR region using a survey instrument. The validity and reliability of the research model were investigated using Structured Equation Modelling (SEM) with SPSS AMOS 24. According to the findings, demographic characteristics are not a major predictor of customer satisfaction for internet banking, andage, education, and income have very limited effect on customer satisfaction.