An investigation into linear relationship between perceived customer satisfaction with electronic banking services and bank profitability

• Main Authors: Adrias, Mark Vincent C., Cantor, Arthur R., Lopez, Rafael C.
• Format: text
• Language: English
• Published: Animo Repository 2006
• Subjects: Internet banking > Philippines; Electronic funds transfers > Philippines; Bank profits > Philippines; Banks and banking > Philippines
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/7993
• Institution: De La Salle University

This is a study about the linear relationship between customer satisfaction and profitability. The base article is the work of Krishnan (1999). Primary and secondary data were used. Primary data involve the interval responses of 240 survey respondents to a main survey questionnaire that has a built-in pilot survey questionnaire that will establish the validity of the constructs used in the main survey. The main survey is about the level of importance and the satisfaction ratings of the 240 respondents in the areas of ATM services, phone banking services, internet banking services, and credit card services. The secondary data involve net income of the banks for the years 2000-2005. The research design is correlational. There is no attribution of cause-or-effect on either customer satisfaction or profitability. The sampling design is random sampling. The precision level of the survey is 92.18%. The paper unearthed evidence that there is a linear relationship between customer satisfaction and profitability, but that relationship is only significant for the years 2000, 2002, and 2004.