Escolar Documentos
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INTERNATIONAL JOURNAL OF
CORPORATE MANAGEMENT
ISSN 2579 - 2342
SPECIAL ISSUE
Copyright © April 2019
KEISIE INTERNATIONAL UNIVERSITY OF USA
i
Editor in Chief: Dr. Wayne Bottiger
Assistant Editor: Dr. Rajitha Medungoda
ii
IJCM
INTERNATIONAL JOURNAL OF
CORPORATE MANAGEMENT
ISSN 2579 - 2342
SPECIAL ISSUE
Editorial Board
01 Dr. Wayne Bottiger, (Editor in Chief), The Vice-Chancellor, KEISIE
International University, USE
02 Dr.P.H.R. Suraweera, President, Action Valley University of Sri Lanka
03 Prof. Udith Jayasinghe-Mudalige, Senior Professor, Wayamba
University of Sri Lanka
04 Prof. Sunanda Degamboda, Senior Professor (Rtd.), Kelaniya
University, Sri Lanka
05 Ms. Aperrajitha Ariyadasa, Attorney-at-Law, Notary Public, Patent
and Commissioner of Oaths, Lecturer, University of Plymouth UK
06 Dr. Charles Wells Jr, KEISEI International University, USE
iii
IJCM
INTERNATIONAL JOURNAL OF
CORPORATE MANAGEMENT
ISSN 2579 - 2342
SPECIAL ISSUE
Content
01 Influence on the Decisions of Fashion Maniacs: An application of
01
Extended Marketing Mix - Arachchige NHP, Perera DAM, and
Kuruppuarachchi YDR
02 The effects of Rebranding on Customer Perception: a case of People’s
16
Bank Sri Lanka – Samarasinghe MGMHN, Perera DAM, and
Medungoda RP
03 Perception of Ethical Behavior of the Pharmaceutical Industry in Sri
35
Lanka - Gunasekara Mahinda LA and Perera DAM
04 Killer Crashes in Sri Lanka: A descriptive analysis of Trends and Factors
56
- Premathilake IP, Samarakoon SMRK and Perera DAM
05 Impact of Online Banking: A comparative analysis of Public vs. Private
75
Banks - Ihalagedara TN and Perera DAM
06 Impact of Extended Marketing Mix on Customer Satisfaction in State
96
Banking Sector - Konara KMN Ediriweera IN, and Perera DAM
07 Impact of Perceived Value on Customer Satisfaction and Continuance
111
Intention of Credit Card Usage - Polpitiya RMTK, Perera DAM and
Ediriweera IN
08 Factors Affecting Customers’ Intention to Use Electronic Banking -
127
Danawala Withana DWA, Samarakoon SMRK, and Perera DAM
iv
INFLUENCE ON THE DECISIONS OF FASHION MANIACS: AN
APPLICATION OF EXTENDED MARKETING MIX
N.H.P. Arachchige1, Perera DAM2, and Y.D.R. Kuruppuarachchi2
1
Faculty of Postgraduate Studies, KEISIE International University, USA
2
Faculty of Business Studies and Finance, Wayamba University of Sri Lanka, Kuliyapitiya,
Sri Lanka
niroshhimal@gmail.com
Abstract
The study focuses on the influence of the extended marketing mix on consumers’
choice of the apparel market in Sri Lanka. Seven marketing mix attributes (7 Ps)
which have been identified by many scholars, including product, price, place,
promotion, process, people, and physical evidence were used as independent
variables. The study used a quantitative research approach, and primary data were
collected through the administration of questionnaires to 287 customers of 6
showrooms in 5 districts. The data collected were analyzed with the use of Statistical
Package for Social Sciences (SPSS: Version 25) and One-way ANOVA, and
Pearson’s Correlation Coefficient were used to test independence and relationship of
the extended marketing mix and consumer choice of repeat purchase. The ground
staff (i.e., People) of the apparel outlet had the greatest influence on customer’s
decision to repeat purchase (r=.679; p<0.01). This is followed by place, promotion,
and physical evidence. The study recommended that apparel businesses should
analyze the variables in the extended marketing mix that stimulate customers’ interest
in clothing based on the segment in their target market and develop effective
promotion strategies and create loyalty among the customers. The findings of this
study are especially important due to the growing influx of international apparel
brands in the Sri Lankan economy.
Keywords: Apparel market, Consumer behavior, Extended marketing mix
1. Background
Today the apparel industry in Sri Lanka is booming due to demographic changes over
the years, and it one of the biggest industry in Sri Lanka. It is one of the most
significant contributors to the Sri Lankan economy each year. According to the
Export Development Board, apparel exports are the largest export income in the
country, earning USD 4.9 billion in 2014 with a 9.26% year over year increase. It
reaches a total value of $4.8 billion in 2017. That figure was 3% higher when
compared to 2016 numbers.
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The export figures in December 2018 saw Sri Lanka’s apparel industry for the first
time crossing the $ 5 billion mark for the first time in history. It is the first export
industry that has achieved this number in Sri Lanka since the country was opened as
a free economy in 1977 (Rohan, 2019). That means the Sri Lankan apparel industry
is one of the primary employers too - it employees about 15 percent of the country
workforce, many of which are jobs that are held by women (Brandon, 2019). The
employment directly created by the apparel industry would be more than 250,000.
Many factories are located in rural or underdeveloped regions of the country as well
as in the northern and eastern provinces where new factories were put up after the end
of the conflict (Rohan, 2019).
In addition to the foreign exchange earned through exports, the local market
contributions from the apparel industry are highly significant. According to the
Household Income and Expenditure Survey – 2016, the average monthly household
expenditure is Rs. 54,999 per month for Sri Lanka in 2016. Out of which, Rs. 1,581
(4.4 percent) spend on Clothing and textile & footwear.
Since the apparel market produces products comparatively in similar nature with least
innovations, they simply are competing with one another to earn the interest of the
main apparel market. Within a high-competitive market, the customer is given the
great power to choose from a wide variety of sellers., A company needs to know the
exact preferences of its customers and make them satisfy over the competitors to
make a profit in such a customer-centric market. The concept of the marketing mix,
which is the combination of the seven elements of marketing, the seven Ps: e.g.,
product, price, promotion, place, process, people, and physical evidence, that make
up the marketing strategy.
The focus of this study is to investigate the influence of extended marketing mix
(seven Ps) on customer choice of repeat purchase of apparel market, with special
references to the internal and external customers of ASB fashion, which is a leading
retail fashion chain in Sri Lanka offering clothes and accessories for men, ladies and
children.
Based on the research deficiency identified in the literature review, this study attempts
to investigate the impact of extended marketing mix elements on consumer choice of
repeat buying behavior of apparel consumers in the context of ASB Fashion, Sri
Lanka.
The main objective of this study is twofold: (1) to examine the relationship between
extended marketing mix variables and consumer choice of repeat purchasing behavior
in the apparel market; and (2) to identify among the 7 Ps, which elements exert the
greatest influence on apparel buying decision of internal and external ASB Fashion
consumers.
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H1: There is a significant difference in evaluation towards the variables in
extended marketing mix between three respondent groups (employees in head
office, branch staff, and employees)
H2: There is a significant difference in minimum spending on purchasing
apparels per visit between three respondent groups
H3: There is a significant difference in the choice of repeating purchasing
behavior between three respondent groups
H4: The extended marketing mix variables have a significantly positive influence
on consumer choice of repeat purchasing behavior in the apparel market.
2. Literature Review
2.1. Extended Marketing Mix
Successful companies nowadays have one thing in common at all levels. They have
a serious belief in marketing and a strong customer focus. To understand customer
needs and wants, they have a high sense of commitment (Nayab et.al, 2017).
Moreover, scholars substantially identify marketing mix as controllable parameters
that firms use to influence consumer buying process (Ninh, 2015; Kotler, 2010). The
conventional framework of marketing mix comprises 4Ps: product, price, place, and
promotion, which are commonly known as ‘four Ps of marketing’ or traditional
marketing mix. The traditional marketing mix was originally devised by the
American Professor of Marketing E. Jerome McCarthy and published in 1960 in
his book Basic Marketing -a Managerial Approach.
Later on, McCarthy′s 4Ps mix has increasingly come under attack with the result that
different marketing mixes have been put forward for different marketing contexts
(Mohammed and Pervaiz, 1995). Contenders argue that four Ps were designed at a
time where businesses were more likely to sell products, rather than services and the
role of customer service (Annmarie, 2018). In 1981, by the insight about physical
products and services, Bernard H. Booms and Mary J. Bitner further developed the
traditional marketing mix of Jerome McCarthy into the services marketing mix
(Booms and Bitner, 1981).
This Service Marketing Mix is also called the extended marketing mix or the 7 Ps of
Booms and Bitner, which is now commonly known as ‘seven Ps of marketing.’ The
7 Ps model went beyond the four basic marketing principles for product marketing
and added another three important factors to the marketing mix: People, Process, and
Physical Evidence, that make the services marketing mix. In 1981 this service
marketing mix approach was seen as very valuable, and it provided new insights as a
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result of which the extension gained widespread acceptance in the science of services
marketing (Van, 2011).
Impact of Marketing Mix on Buying Behaviour
Both traditional and extended marketing mix consists of elements, which used by the
organizations or businesses to enhance customers’ requirements. The majority of
marketing practitioners consider the marketing mix as the toolkit of transaction
marketing and archetype for operational marketing planning (Gronroos, 1994). While
empirical evidence on the exact role and contribution of the marketing mix to the
success of commercial organizations is very limited, several studies confirm that the
4Ps Mix is indeed the trusted conceptual platform of practitioners dealing with
tactical marketing issues (Romano and Ratnatunga, 1995). The wide acceptance of
the marketing mix among field marketers is their being identified as the controllable
parameters likely to influence the consumer buying process and decisions (Kotler,
2003).
Relationship marketing is an old idea but a new focus now at the forefront of services
marketing practice and academic research. The impetus for its development has come
from the maturing of services marketing with the emphasis on quality, increased
recognition of potential benefits for the firm and the customer, and technological
advances (Leonard, 1995).
The results of a survey of UK and European marketing academics suggest that there
is a high degree of dissatisfaction with 4Ps, and suggest that the 7Ps framework has
already achieved a high degree of acceptance as a generic marketing mix among both
groups of respondents (Mohammed and Pervaiz, 1995). They provide fairly strong
support for the view that Booms and Bitner′s 7Ps framework should replace
McCarthy′s 4Ps framework.
Boonghee et.al, (2000) examined the relationships between selected marketing mix
elements and the creation of brand equity and confirmed that frequent price
promotions, such as price deals, are related to low brand equity, whereas high
advertising spending, high price, good store image, and high distribution intensity are
related to high brand equity.
2. Methodology
3.1. The population of the Study and Sampling method
The target population for this research consists of all consumers, employees at head
office, and employees in branches of ASB Fashion in Sri Lanka. This selection was
made based on easy access and accessibility. The sample consisted of 287
respondents: including 207 consumers (n=207), 15 employees from head office
-5-
(n=15), and 65 employees from branches (n=65). The sample consists of 189 female
respondents and 89 male respondents.
Researchers employed both stratified sampling method and simple random sampling
method in selecting the sample. Stratified sampling is most representative of a
population, and this increased efficiency and reliability of analysis (Collis and
Hussey, 2009). With the use of stratified sampling technique, respondents from each
category (i.e., head office employees, branch employees, and consumers) were
considered.
The sample is dominated by female customers (65.9 percent), and the majority (63.4
percent) are in-between 20 to 30 years of age. Thirty-eight percent (N=109) accepted
that they have studied up to G.C.E. (Advanced Level).
The income analysis presented in Table 02 showed that almost 48.4 percent (N=139)
stated their average monthly income as Rs. 20,000 per month. Among this low-
income category, the majority (81.5 percent) is branch employees, which is followed
by the head office employees (40 percent) and customers (38.7 percent).
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Table 01: Respondents’ Profile
Respondents f % Gender f %
HO Employees 15 5.2 Male 98 34.1
Branch Employees 65 22.6 Female 189 65.9
Customers 207 72.1
Total 287 100.0 Total 287 100.0
Education f % Age f %
GCE (OL) 116 40.4 ≤ 20 years 75 26.1
GCE (AL) 109 38.0 21 – 30 years 107 37.3
Diploma 21 7.3 31 – 40 years 44 15.3
Degree 22 7.7 41 – 50 years 35 12.2
Master's 1 .3 51 – 60 years 16 5.6
Others 18 6.3 ≥ 61 years 10 3.5
Total 287 100.0 Total 287 100.0
Further, these figures highlight that the average monthly incomes of head office
employees diverge between Rs. 20,000, and Rs. 137,500 and that of the customers
are in-between Rs. 20,000 to Rs. 175,000. Whereas, the branch employees confirmed
that they earn Rs. 20,000.00 to 42,000.00 per month.
-7-
Table 03: Behavioural Pattern in Textile Market
To understand the usual behavior among consumers in the sample, they were
requested to indicate how often they purchase clothes and how often they change the
apparel retailer. According to the figures in Table 03, 115 respondents (40.1 percent)
indicated that they do not have a specific time for purchasing clothes. Yet 21.6 percent
stated that they usually purchase cloths at least once a month. Almost half of the
sample (50.5 percent) accepted that they occasionally change the place of purchasing
cloths. This shows the greatness of the competitiveness in the apparel market in Sri
Lanka.
Empirical figures in Table 04 endorse that among the others, unreasonable price (30.7
percent), poor customer service (16.7 percent), and limited collection of clothes (16.4
percent) are the major reasons for changing the retailers in the apparel market in Sri
Lanka.
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Table 05: Factors considering in selecting an Apparel Retailer
According to Table 06, approximately 68.6 percent of customers spend at least Rs.
500.00 to Rs. 2,500.00 to purchase cloths per visit to apparel shop. Another 18.1
percent accepted that their average minimum spending on clothes is Rs. 4,000.00 per
visit. In overall, the average spending on clothes is found to be roughly Rs. 2,750.00
(𝑥̅ = Rs. 2,748.26, SD = Rs. 2,347.82).
Excitingly, Levene's test figures in the independence sample test indicate that no
differences in the average amount spend on clothes between head office employees,
branch employees, and customers (F=3.097, t = 1.290, p > 0.05).
-9-
Influence of Extended Marketing Mix on the decision to Repeat Purchase
Respondents were requested to identify the key determinants in the extended
marketing mix that influencing their buying behavior in the apparel market. These
views were rated between Highly Important (5) to Least Important (1), and the
outcomes are demonstrated in Table 07.
According to figures, the quality of Product is the most influential factor in apparel
market (𝑥̅ = 4.10, SD = .5918), which is followed by Process (𝑥̅ = 3.96, SD = .6566),
Place: (𝑥̅ = 3.84, SD = .7394), and People (𝑥̅ = 3.74, SD = .7081). The respondents
have identified Promotion as the lease influential factor (𝑥̅ = 3.37, SD = .8140) in
apparel market.
Table 08 and 09 show the output of the ANOVA analysis for the variables in the
extended marketing mix and average spend per time on apparel, respectively.
The significance value of product (p=.054), price (p=.065), promotion (p=.402), and
process (p=.546) are greater than 0.05 and therefore, there is no statistically
significant difference in the mean evaluation of consumers towards product, price,
promotion and process between the type respondents (i.e., employees of head office,
branch staff and the consumers). Yet, the significance values for a place, people, and
physical evidence are lower than 0.05 (i.e., p<.05), and therefore, a statistically
significant difference is found between the respondent's evaluation of place, people,
and physical evidence variables of the extended marketing mix and the type of
respondents.
These findings partially support the first hypothesis of this study. Therefore, it can be
concluded that out of seven Ps in the extended marketing mix, place, people, and
physical evidence are the 3 Ps found to be the prominent factors influencing on the
choice of repeat purchasing decision in the apparel market.
Since the significant value less than 0.05, it supports the second hypothesis of this
study. Therefore, researchers conclude that there is a significant difference in
minimum rupees spending on purchasing apparels per visit between three respondent
groups (F2, 284 = 9.485, p<0.05).
Table 10 presents the output of the ANOVA analysis for the consumer choice of
repeat purchasing decision in the apparel market.
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Researchers conclude that the mean choice of repeat purchasing decision of
consumers at the apparel market is significantly different for at least one of the
respondent groups (F2, 282 = 5.384, p<0.05). These findings support the third
hypothesis of this study.
Pearson’s correlation coefficient was used to analyze the influence of the extended
marketing mix (EMM) on customers’ choice of repeat purchase (CRP), and the results
were given in Table 11 and Table 12 respectively.
P. Evidence
Promotion
Product
Process
People
Place
Price
CRP
Table 11 confirms that there are strong positive correlations between customers’
choice of repeat purchase and the variables of the extended marketing mix (p<.01).
Among the others, people (r=0.679, p<0.01), place (r=0.660, p<0.01), promotion
(r=0.640, p<0.01), and physical evidence (r=0.635, p<0.01) are found to be the
significant factors, which encourage the customers to visit the same place to purchase
their apparels. These findings support the fourth hypothesis of this study, and
therefore, it can be concluded that the extended marketing mix variables have a
significantly positive influence on consumer choice of repeat purchasing behavior in
the apparel market.
Since researchers observed a significant difference between the choice of repeat
purchasing decision of consumers for at least one of the respondent groups (F2, 282 =
5.384, p<0.05), corrections between CRP and EMM were measured for each group
separately, and the results are presented in Table 12.
- 12 -
Table 12: Relationship of CRP and EMM among three groups
P. Evidence
Promotion
Product
Process
People
Place
Price
CRP
HO Employees
Pearson Correlation 1 .718** .192 .442 .691** .645** .822** .858**
Sig. (2-tailed) .003 .494 .099 .004 .009 .000 .000
N 15 15 15 15 15 15 15 15
Branch Staff
Pearson Correlation 1 .291** .343** .705** .595** .634** .611** .496**
Sig. (2-tailed) .019 .005 .000 .000 .000 .000 .000
N 65 65 65 65 65 65 65 65
Customers
Pearson Correlation 1 .443** .554** .646** .629** .678** .587** .635**
Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000
N 207 207 207 207 207 207 207 207
**. Correlation is significant at the 0.01 level (2-tailed).
* . Correlation is significant at the 0.05 level (2-tailed).
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consumers on their evaluation of product, price, promotion, and process. However,
significant differences in minimum spending on purchasing apparels per visit
between three respondent groups were revealed.
Based on the analysis, researchers establish that the mean choice of repeat purchasing
decision of consumers at the apparel market is significantly different for at least one
of the respondent groups. Moreover, strong positive correlations between customers’
choice of repeat purchase and the variables of the extended marketing mix were
found. Results showed that among the 7 Ps in the extended marketing mix, people,
place, promotion, and physical evidence are likely to be the prominent factors, which
influence on consumer choice of repeat purchasing behavior in the apparel market.
Still, for head office staff, price and place were found to be insignificantly related to
their repeat purchasing.
As a conclusion, there is no doubt that the fashion industry is growing in a dynamic
environment (Cham et.al, 2018). Identifying the influence of extended marketing mix
on repeat purchasing decision of consumers would have been a great advantage for
the apparel manufacturers and retailers. Understanding what stimulates customers’
interest in clothing would be useful for them to accurately segment their target
market, develop effective promotion strategies, and create loyalty among the
customers (Cham et.al, 2018; Ofosu et.al, 2016; Van, 20111). The findings of this
study are especially important due to the growing influx of international apparel
brands in the Sri Lankan economy.
- 14 -
References
Cham, T.H.1, Ng, C.K.Y., Lim, Y.M., and Cheng, B.L. (2018), Factors Influencing
Clothing Interest and Purchase Intention: A Study of Generation Y Consumers in
Malaysia, published in The International Review of Retail, Distribution and
Consumer Research (Taylor & Francis)
Annmarie Hanlon, (2018), How to use the 7Ps Marketing Mix, Smart Insights
(Marketing Intelligence) Ltd
Booms, B. and Bitner, M. J. (1981), Marketing Strategies and Organizational
Structures for Service Firms, Marketing of Services, James H. Donnelly and
William R. George, eds. Chicago: American Marketing Association, pp. 47-51.
Boonghee Yoo, Naveen Donthu, and Sungho Lee, (2000), An Examination of
Selected Marketing Mix Elements and Brand Equity, Journal of the Academy of
Marketing Science, Volume: 28 issue: 2, pp. 195-211
Brandon Gaille, (2019), Sri Lankan Fashion Industry Statistics, Trends & Analysis,
brandongaille.com, January 15
Collis, J. and Hussey, R., (2009), Business Research: A Practical Guide for
Undergraduate and Postgraduate Students, 3rd edition, Palgrave
Macmillan, NY, USA.
HIES (2016), Household Income and Expenditure Survey – 2016, Department of
Census and Statistics Ministry of National Policies and Economic Affairs Sri
Lanka
Mohammed Rafiq, and Pervaiz K. Ahmed, (1995), Using the 7Ps as a generic
marketing mix: an exploratory survey of UK and European marketing academics,
Marketing Intelligence & Planning, Volume 13, Issue: 9, pp.4-15
Nayab Sanober, Adil Adnan, Waqar Alam, and Adeel Alam, (2017), Impact of
Marketing Mix strategies on consumer purchase intention, Frontiers of Emerging
Trends in Social Sciences, Volume 1, Issue 2, pp. 119-129
Ninh Nguyen, Thi Thu Hoai Phan, and Phuong Anh Vu, (2015), The Impact of
Marketing Mix Elements on Food Buying Behavior: A Study of Supermarket
Consumers in Vietnam, International Journal of Business and Management,
Volume 10, No. 10, pp. 207-215
Ofosu Amofah, Isaac Gyamfi, and Christine Osei Tutu, (2016), The Influence of
Service Marketing Mix on Customer Choice of Repeat Purchase of Restaurant in
Kumasi, Ghana, European Journal of Business and Management, Volume8,
Number11, pp.102-112
- 15 -
Rohan Masakorala, (2019), Sri Lanka apparel exports $ 5 b milestones, what lessons
to learn, and what does it mean for SL? Daily FT, February 21
Van Vliet, V, (2011), Service marketing mix (7 P’s), Retrieved 12.03.2019 from
ToolsHero: https://www.toolshero.com
Leonard L. Berry, (1995), Relationship Marketing of Services—Growing Interest,
Emerging Perspectives, Journal of the Academy of Marketing Science, Volume:
23 (4), pp. 236-245
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THE EFFECTS OF REBRANDING ON CUSTOMER PERCEPTION:
A CASE OF PEOPLE’S BANK SRI LANKA
Samarasinghe MGMHN1, Perera DAM2, and Medungoda RP3
1
Faculty of Postgraduate Studies, KEISIE International University, USA
2
Faculty of Business Studies and Finance, Wayamba University of Sri Lanka, Kuliyapitiya,
Sri Lanka
3
School of Business, Action Valley Campus Kurunegala, Sri Lanka
hasharisi@gmail.com
Abstract
The corporate rebranding campaigns are underpinned by its mission statements in the
corporate world, and the ultimate objective is to build a high performing strong
customer-oriented organization through inspired and self-motivated staff ensuring
satisfied service for every customer segment. Rebranding is a modern strategic
approach, and the process requires a huge financial investment, and the entire process
has to be reviewed closely at a strategic level to ensure return on investment (ROI).
The time factor in re-branding organizations is critical in educating its effects on staff
knowledge are vitally important. The purpose of this study was to investigate the
impact of corporate rebranding on organization performance, customer satisfaction,
and loyalty. This study investigates the effects of the rebranding of the People’s Bank
on customer perception, taking into account three dependent variables: customer
satisfaction, customer perception, and organization performance. A mixed research
methodology was adopted hence the combination of questionnaires and interviews in
the data collection process. The study used a sample size of one hundred and forty-
six (n=146) customers. Data was gathered, recorded, analyzed, and interpreted based
on the research objectives using the SPSS (Version 25) software. The results show
that customers have a positive perception towards the holistic rebranding effort of
Peoples Bank. Moreover, it established that corporate rebranding changes have a
strong positive effect on both customer satisfaction and customer loyalty.
1. Background
Organizations today have become fully customer-focused and driven by customer
demands. It has become challenging to satisfy and retain customer loyalty in modern-
day business environments. Research suggests that customer satisfaction and service
quality are two distinct but related constructs, which can directly make a significant
impact on organizational performance. It is proved that services firms with a high
level of customer satisfaction lead to profit maximization.
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Researchers have proven that customer satisfaction and loyalty has become a major
indicator for long term survival and financial performance of any company. It is
proved that improvements in quality standards bring positive outcomes for any firm.
Being a service sector business, which largely depends on the people, it is important
that bank understands the importance of improving service quality and customer
satisfaction and allocate resources in order to meet their client’s expectations to the
highest potential.
The current Banking environment is becoming competitive and challenging than ever
before with technological challenges and various other factors. All organizations are
forced to re-engineer their processes to improve service quality and remain stable.
Advancement of technology has influenced the banking industry by a great deal, and
the future of banks will be decided on how different these organizations interact with
the latest technology. This applies the same for the relation of an organization with
its customer.
In this era of rapid change in the banking environment, corporate rebranding remains
a very strategic tool in the management of the brand. Corporate rebranding is
necessary because of the changing competition in the banking environment and
market growth. This is mostly done by re-examining bank propositions and core
values as a way of creating a sort of brand refreshment or brand differentiation in the
market.
The study was done based on Peoples Bank Sri Lanka, who has launched a massive
island-wide rebranding campaign recently. The holistic rebranding effort was taken
to attract new customers as well as to get back customers who have left the bank due
to various reasons. The brand image was highly raised throughout the campaign, and
clear image and impression given on Banks newer end to end Digital approach have
drawn many customers attention. The ultimate objective of rebranding strategic
approach by the bank was to bring in a sustainable competitive advantage for peoples
bank branch network and enhance the overall performance of the bank to step up to
the level of Sri Lanka’s number one bank.
Despite the huge investments made by the banks for their rebranding activities, and
it is hard to find empirical studies showing rebranding effects on customer perception
towards commercial banks in Sri Lanka. In general, most of the studies have focused
purely on the financial performance of the institutions, and the phenomenon on
rebranding has as yet received little academic attention.
Filling this research gap, this study, therefore, attempts to evaluate the effect of
rebranding effort on organizational image and performance of Peoples Bank Sri
Lanka.
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1.1. Research Objectives and Hypothesis
The purpose of the study is to create a more favorable customer attitude towards the
rebranded product or the service. This study, therefore, attempts to evaluate the effect
of holistic rebranding effort on organizational image and performance of Peoples
Bank Sri Lanka. The researcher particularly examines how rebranding and new
digital transformation of the Peoples Bank during 2017-2018 has affected on its
organizational performance customer loyalty and satisfaction.
1.1.a. Hypothesis
Based on the literature reviewed, the study anticipated the level of excitement and
customer’s attention drawn towards rebranding activities took place at Peoples Bank,
will have a direct relationship with customer satisfaction, customer loyalty, and
perceived service quality. Based on that, a conceptual framework was presented in
Figure 01 with the following hypotheses.
Rebranding Strategies
Name, Logo
and Slogan
Colours
Win over the
KIOSK business user on a
personal level
Apps & Mobile
Banking
Technology
Business Challenges to
Strategies Customers
Night Banking
Branch
Network
- 19 -
H1: Customers are like to be positive towards the holistic rebranding effort of
Peoples Bank Sri Lanka
H2: Corporate rebranding has a strong positive effect on Customer Satisfaction of
People’s Bank.
H3: Corporate rebranding has a positive moderating effect on Customer Loyalty
of People’s Bank.
- 20 -
2. Literature Review
2.1. Brand, Branding, and Rebranding
A brand is a name, term, design, symbol, or any other feature that identifies one
seller’s good or service as distinct from those of other sellers (American Marketing
Association). Whereas, branding is endowing products and services with the power
of a brand (Kotler & Keller, 2016). The objective of branding is to attract and retain
loyal customers by delivering a product that is always aligned with what the brand
promises. It is the art of creating and maintaining a brand (Anil Kumar, et.al, 2013).
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rebranding consists of changing some or all of the tangible (the physical expression
of the brand) and intangible (value, image, and feelings) elements of a brand. Stuart
(2003) also examines the rebranding issues relating to corporate name, logo, and
slogan of a business. She concluded that corporate rebranding had become a popular
strategy for companies even though it contradicts what has been regarded as a
standard marketing practice, which is to have a long-term commitment to a brand.
Laurent and Mary (2006) attempted to explore the drivers of the corporate
rebranding phenomenon and argue that “decision to rebrand is most often
provoked by structural changes, particularly mergers and acquisitions, which
have a fundamental effect on the corporation's identity and core strategy.” Stuart
and Muzellec (2004) voiced that “corporate rebranding is a strategy used by
companies to change their image. There may be very good reasons for doing this, the
most obvious being to send a signal to stakeholders that something about the
organization has changed (for the better)”.
- 23 -
and customer satisfaction and allocate resources in order to meet their client’s
expectations to the highest potential. This research mainly focuses on those
improvements made through a rebranding exercise. The research was conducted in
service industry environment and information gathered from a practical scenario.
Chaniago (2016) confirmed that corporate rebranding has no significant effect on
customer loyalty and customer satisfaction. Bylon et.al, (2018) examined whether or
not the rebranding activities in the Ghanaian banking industry, had any influence on
customers’ perception on service quality, their level of satisfaction and their level of
loyalty. Findings identified that rebranding had no statistically significant effect on
perceived service quality, customer satisfaction, and customer loyalty in the Ghanaian
banking industry. Setiani and Antoni (2018) also examined corporate rebranding in
influencing brand equity in media companies. However, there is no significant effect
between repositioning with perceived quality and new image with brand loyalty on
Radio Kencana Malang.
3. Research Methodology
The mixed research method was used throughout the study, and the primary study
was mainly conducted using research questionnaire and interviews with bank
customers and professional in the industry. The research findings were analyzed using
qualitative data analyses techniques to conclude.
- 24 -
questionnaires. Outliers were identified and corrected, by running some descriptive
analysis such as mean, standard deviation, minimum, and maximum.
Table 01 shows the male and female combination of the sample. Accordingly, the
male population contributes to 56.2% representing the majority whereas 43.8%
constitute from the female population
Table 02 shows the age limits of the respondents in this study. Accordingly, the
majority of the respondents represent the age group of 31-40 years (37%), whereas
the lowest category of respondents is less than 20 years (5.5%).
- 25 -
Table 03: Respondent’s Education
Cumulative
Frequency Percent Valid Percent
Percent
Valid No formal education 4 2.7 2.7 2.7
Up to GCE (AL) 68 46.6 46.6 49.3
Diploma 56 38.4 38.4 87.7
Degree 18 12.3 12.3 100.0
Total 146 100.0 100.0
As per Table 03, the majority (46.6 percent) of the respondents have completed up to
GCE (AL) and its followed by Diploma (38.4 percent) and Degree (12.3 percent)
which means customers are educated enough for this survey and the results were more
accurate.
Table 04 represents the occupation levels of the customers, and the majority were
civil, and public servants as this is a government bank. Also, private-sector employers
accounted for 32.9 percent, the second-largest respondents.
As per Table 05, most of the respondents have a good level of experience with the
said bank as 26 percent of the respondents have dealt with the bank for 2 to 4 years.
So they do have a good rapport with the bank.
- 26 -
Researchers hypothesized that customers are like to be positive towards the holistic
rebranding effort of Peoples Bank Sri Lanka. Therefore, descriptive statistics in the
form of arithmetic means, standard deviations for respondents are computed for
various dimensions of the Perception towards Rebranding at People’s Bank. The
outcomes are presented in Table 06.
As per table 06, customers have indicated their positive perception towards the
holistic rebranding effort of Peoples Bank Sri Lanka (𝑥̅ > 3.50). In particular, their
perception of Night Banking has the highest mean (𝑥̅ = 4.14, SD=.689) followed by
perception towards Apps and Mobile Banking (𝑥̅ = 3.99, SD=.669) and perception
towards KIOSK (𝑥̅ = 3.89, SD=.601). That means that the majority of the customers
having a good perception with this bank.
PNBN
PBRN
PCLR
PCSR
PTEC
PNLS
PSTR
PKIO
Valid 146 146 146 146 146 146 146 146 146
Mean 3.79 3.86 3.89 3.99 3.72 3.82 3.86 4.14 3.84
Std. Deviation .449 .929 .601 .669 .617 .726 .603 .689 .579
Minimum 2.33 1.00 1.80 1.67 1.80 1.00 1.25 2.00 1.75
Maximum 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
Where:
These findings support the first hypothesis of the study (i.e., Customers are like to be
positive towards the holistic rebranding effort of Peoples Bank Sri Lanka) and
therefore, it can be concluded that customers are very happy with the different
services provided by the bank after its rebranding.
- 27 -
As per table 07, customer satisfaction has a higher mean value (𝑥̅ = 3.7027, SD=.4294)
means that there is a high impact of rebranding on customer satisfaction with the
bank. Whereas customer loyalty also improved up to a certain extent (𝑥̅ = 3.6986,
SD=.4294), but slightly less than customers satisfaction.
As a specific measure researcher has given a question to respondents to find out the
difficulties faced by them due to rebranding. As per the responses, the major
challenge they faced can be identified as service delivery issues (𝑥̅ = 3.247,
SD=.9653). However, since all mean values are less than 3.5, it can be concluded that
the changes done by the bank as rebranding sufficiently deliver a new service, no
adverse impact on their brand awareness, and no additional cost for the clients.
PNBN
PBRN
PCLR
PCSR
PTEC
PNLS
PSTR
PKIO
Pearson 1 .564** .402** .412** .277** .639** .348** .279** .196* .630**
Correlation
Sig. (2-tailed) .000 .000 .000 .001 .000 .000 .001 .018 .000
N 146 146 146 146 146 146 146 146 146 146
**Correlation is significant at the 0.01 level (2-tailed).
* Correlation is significant at the 0.05 level (2-tailed).
- 28 -
Where:
As per the results, all rebranding strategies have strong positive effects on customer
satisfaction of People’s Bank. The intensity of the relationship between customer
satisfaction and perception towards Customer Service was equal to 0.639 (p< 0.01),
which shows the highest contributor to the satisfaction out of rebranding strategies.
The intensity of the relationship between customer satisfaction and perception
towards Branch Network was equal to 0.630 (p< 0.01), which was the second-largest
contributor to rebranding strategies.
The intensity of the relationship between two variables of customer satisfaction and
perception towards Name, Logo, and Slogan change in the studied was equal to 0
.564. It is the third-highest value contributing to rebranding perception. The lowest
contributor was identified as perception towards Night Banking. The correlation of
customer’s perception towards Night Banking with customer satisfaction factor is
found to be significant at 0.05 level (r=0.196, p<0.05).
By considering all the variables of rebranding, all were identified as significant
towards customer satisfaction. Based on these findings, it can be concluded that
corporate rebranding has a strong positive effect on customer satisfaction of the
People’s Bank (H2). In other words, the more the changes in the relevant attributes,
the higher the customer satisfaction would be.
- 29 -
Table 09: Customer Loyalties, Satisfaction, Win over the Business & Difficulties
Customer Win over
Loyalty Satisfaction Challenges Business
Pearson Correlation 1 .773** -.290** .498**
Sig. (2-tailed) .000 .000 .000
N 146 146 146 146
**
Pearson Correlation .773 1 -.266** .620**
Sig. (2-tailed) .000 .001 .000
N 146 146 146 146
**
Pearson Correlation .498 .620** -.070 1
Sig. (2-tailed) .000 .000 .398
N 146 146 146 146
Pearson Correlation -.290** -.266** 1 -.070
Sig. (2-tailed) .000 .001 .398
N 146 146 146 146
**. Correlation is significant at the 0.01 level (2-tailed).
Where:
On the other hand, the findings of this study have confirmed that corporate rebranding
has a strong positive effect on customer satisfaction of People’s Bank. Therefore,
researchers conclude that Corporate Rebranding has a strong positive effect on
Customer Loyalty of People’s Bank. These finding partially support the third
hypothesis of this study in which researchers assumes a moderating positive
relationship between Corporate Rebranding and Customer Loyalty.
- 30 -
The intensity level in between customer loyalty and win over challengers are found
to be at a moderate level (r = 0.498, p<0.01), which confirms that when customer
loyalty increases the business will get the chances to develop and win the strategies
and vice versa. A significantly negative relationship was identified between customer
loyalty and customer challenges (r = -0.290, p<0.01). This refers to when there is no
chance to face challenges by the customers, their loyalty increases since it has been
overcome by the newly introduced challengers. So the rebranding strategy does not
have to hinder the performance level of the bank since it supported the existing
atmospheres of the bank to get it modified, so customers are more satisfied with the
new strategies and adapting to the changes without hesitation.
- 31 -
Moreover, the results of this study established that all the variables of rebranding
strategies have strong positive effects on customer satisfaction of People’s Bank. The
strong positive relationship was found between customer satisfaction and their
perception towards Customer Service, Branch Network, bank Name, Logo, and
Slogan change, new Colours change, and service and the appearance of KIOSKs.
Though the majority have voiced a good perception towards Night Banking facilities
and new Apps and Mobile Banking of People’s bank, the correlation between
customer satisfaction and their perception towards Night Banking and Apps and
Mobile Banking of People’s bank were found to be considerably low.
The relationship between Customer Loyalties and Customer Satisfaction also was
calculated and established that when customer satisfaction increases, customer
loyalty also increased significantly. Since all the variables incorporate rebranding has
a strong positive effect on customer satisfaction, it can be concluded that Corporate
Rebranding of People’s Bank has a strong positive effect on Customer Loyalty.
The correlation between customer loyalty and win over challengers are found to be at
a moderate level, which means that when the business gets the chances to develop
and win the strategies, customer loyalty also significantly increases. Further, the
research findings confirmed that the rebranding strategy supports the existing
atmospheres of the bank to get it modified, so customers are more satisfied with the
new strategies and adapting to the changes without hesitation.
Finally, it can be concluded that the advancement of technology has influenced the
banking industry by a great deal, and the future of banks will be decided on how
different these organizations interact with the latest technology. This applies the same
for the relation of an organization with its customer. In different service industries, it
is hard to define service quality and customer satisfaction direct relationship towards
organizational performance due to their intangible services nature.
- 32 -
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exploratory review, Irish Marketing Review, Volume 16, Number 2, pp. 31-40
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image, and repositioning as a process of rebranding toward brand loyalty, brand
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76, pp. 253-263
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and brand image in corporate rebranding: the case of China, Marketing
Intelligence & Planning, Volume 31 Issue 5, pp.508-521
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Conference Proceedings Adelaide 1-3 December 2003
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a bank renaming: effects of the brand name change on brand personality, brand
attitudes, and customers’ satisfaction, Innovative Marketing, Volume 5, Issue 3,
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- 34 -
PERCEPTION OF ETHICAL BEHAVIOR OF THE
PHARMACEUTICAL INDUSTRY IN SRI LANKA
Gunasekara Mahinda LA1, and Perera DAM2
1
Faculty of Postgraduate Studies, KEISIE International University, USA
2
Faculty of Business Studies and Finance, Wayamba University of Sri Lanka, Kuliyapitiya,
Sri Lanka
mgunasekara1962@gmail.com
Abstract
The prescribing behavior of doctors is influenced by the pharmaceutical industry.
Various studies have been conducted to find out the perception of ethical behavior of
the pharmaceutical industry and the way it influences the prescribing behavior of
doctors. Though there is no conclusive evidence, it is still a prime concern for
managers in the pharmaceutical industry as well as academicians. This study
investigated the extent of which contacts with Medical Promotional Officers [MPO]
and the perception of these contacts influence prescribing habits. It assesses how
physician, medicine promotional officers, pharmaceutical retailers/pharmaceutical
companies and patients perceive the code of ethics of the pharmaceutical industry in
Sri Lanka. The study also attempts to find out to what level is the perception of ethical
behavior dependent on professional status. A set of attitudinal statements explaining
the underlying phenomenon were formulated and administered with a sample of 120
respondents (n=120). Responses were measured on a 5-point Likert scale ranging
from 1 (strongly disagree) to 5 (strongly agree). Several quantitative and qualitative
methods, including Correlation analysis and One-way ANOVA, were used to analyze
the data using the SPSS (version 25) statistical software. Findings suggest that there
is considerable diversity amongst the perception of physicians, patients, pharmacists,
and medicine promotion officers towards the perception level of the ethicality of
journal publication and sponsorship and free sampling in the pharmaceutical industry
in Sri Lanka. However, no significant difference found between the group towards
the quality of medicine promotion officers.
Keywords: Code of ethics, Ethical behavior, Healthcare professional Perception,
Pharmaceutical industry
- 35 -
1. Introduction
- 36 -
This article examines the how physician, medical representatives, pharmaceutical
retailers/pharmaceutical companies and patients, perceive the code of ethics of the
pharmaceutical industry in Sri Lanka. Further, the study attempts to find out to what
level is the perception of ethical behavior dependent on professional status.
Three main code of ethics were identified and used for this study. These include (1)
Journal publication - education through journals, brochures, medical leaflets - for
doctors and patients, (2) Sponsors and give away for doctors - sponsoring clinical
meeting sponsoring foreign trips, and free sampling, and (3) Quality of medicine
promotional officers.
1.2. Hypothesis
H1: There is a significant difference between the perception level of the physician,
medicine promotional officers, pharmacists (pharmaceutical
retailers/pharmaceutical companies) and patients towards the code of ethics of
the pharmaceutical industry in Sri Lanka.
H2: There is a significant relationship between the professional status (i.e., the
level of education) of the physician, medicine promotional officers, pharmacists
and patients and their perception towards the code of ethics of the pharmaceutical
industry in Sri Lanka.
2. Literature Review
2.1 Pharmaceutical industry
John W. Dailey (2018), in his interesting article on “Pharmaceutical Industry”
published in Britannica articles, discusses the evolution of the modern pharmaceutical
industry from 28th century BC. According to John, the oldest records of medicinal
preparations said to have been written in the 28th century BC by the Chinese
legendary emperor Shennong.
Literature confirms that pharmaceutical industry improved markedly in the 16 th and
17th centuries. In the latter part of the 19th and early 20th centuries, several social,
- 37 -
cultural, and technological changes of importance to pharmaceuticals development
were taken place. Today the pharmaceutical industry has become a very complex and
massive business. At the end of the 20th century, most of the world’s largest
pharmaceutical businesses were located in North America, Europe, and Japan (John,
2018).
- 38 -
provided by a company in a manner or in conditions that would have an
inappropriate influence
4. Pharmaceutical companies are responsible for providing accurate, balanced,
and scientifically valid data on products
5. Promotion must be ethical, accurate, balanced, and must not be misleading.
Information in promotional materials must support a proper assessment of
the risks and benefits of the product and its appropriate use
6. Pharmaceutical companies will respect the privacy and personal information
of patients
7. Pharmaceutical companies should adhere to both the spirit and the letter of
applicable industry codes. To achieve this, pharmaceutical companies will
make sure to appoint appropriately trained personnel.
- 39 -
and expertise and their role in healthcare in the pharmaceutical industry necessitates
the pharmaceutical industry to get euthanized. Many professional ethicists
recommend using four basic values, or principles, to decide ethical issues in the
pharmaceutical industry. These values include the respect for autonomy (i.e., patients
basically have the right to determine their own healthcare), non-maleficence (i.e.
making sure you are not harming the patient), beneficence (i.e. doing good for the
patient), and justice (i.e. distributing the benefits and burdens of care across society)
(Beauchamp, 2013; Caplan, 2018).
In the contemporary pharmaceutical industry, ethical values that are not confined to
just these four principles. There are numerous other important values to consider,
particularly in the pharmaceutical industry, where we can see some unique and special
characteristics in buying behavior. Rachel (2017), for example, pointed out special
characteristics of the pharmaceutical industry - in the case of vital medication,
demand is inelastic the supplier could charge an exorbitant price and demand would
remain steady. He further argues that essentially, pharmaceutical suppliers can put a
price on human life – and that price can be high. This argument endorses that
healthcare professionals in the pharmaceutical industry can manipulate the market by
penalizing innocent patients. To regulate such a vulnerable industry, it is vital to
inculcate ethical practices among healthcare professionals in the industry.
After acknowledging the pharmaceutical industry possesses unique elements that
give a few powerful companies control over drug creation and distribution, we soon
recognize there are inherent ethical problems with the structure of the industry
(Rachel, 2017). Numerous professional institutions, councils, and bodies in the
pharmaceutical industry, therefore, offer guidance on all matters related to
professional conduct and ethics for the healthcare professional in the pharmaceutical
industry including, registered doctors, pharmacists, and medical representatives.
These guide on matters related to their professional conduct, responsibilities to
patients, medical records and confidentiality, consent to medical treatment, and
professional and ethical practice. Today, the pharmaceutical industry is the most
heavily reliant on a code of ethics in its everyday practice (Noordin, 2012). It has
made significant efforts towards ensuring compliant and ethical communication and
interaction with physicians and patients (Jeffrey et.al, 2014).
Kipnis (1990), in his renowned article on Professional Ethics in Healthcare,
articulates that the discussions about issues in ethics among medical professionals are
often frustrated by the failure to distinguish other concerns: legal and institutional
rules, personal values, and personal moralities. Ethics, therefore, can be influenced
by one’s family values, educational background, social learning, professional
activities, religious beliefs, and individual needs (Noordin, 2012). Consequently,
- 40 -
Kipnis (1990) claims that progress can be made if the medical profession reaches a
prior agreement on its core values -- what the good physician ought to care about --
and a consensus on how these values are to be respected by physicians facing ethical
dilemmas.
Code of ethics seeks to create a situation where the general public may be sure that
the choices regarding their pharmaceutical products are made based on the merit of
each product and the patients’ clinical needs. Beth and Karen (2018) conclude that
there are times when a physician can justifiably make a recommendation to a patient
that contravenes a current clinical guideline. In making such a recommendation, they
suggest that a physician should communicate a rationale for deviating from clinical
guidelines and respect a patient’s autonomy.
To guide healthcare professionals to ethically deviate from the accepted code of ethics
in providing patients oriented health-care services, it is important to have an effective
conversation between healthcare professionals and patients. Bryan and Jennifer
(2018) identify a few barriers to effective conversations: knowledge deficits,
misconceptions, cultural differences, and lack of motivation. He argues that good
communication interventions can address this head-on. Of course, it should not be
forgotten that conflict may arise since there are numerous false beliefs in medicine,
leading to confusing the patients, such that some false beliefs overrule the guidance
of the medical professionals. Therefore, it is imperative to understand how false
beliefs that exist in medicine can be regulated. Scott (2018) says that a legal doctrine
that allows a clinician to speak most truthfully to patients and the community is the
best outcome for the health professions and society.
- 41 -
3. Pharmaceutical companies’ interactions with stakeholders must, at all times,
be ethical, appropriate, and professional. Nothing should be offered or provided
by a company in a manner or in conditions that would have an inappropriate
influence.
4. Pharmaceutical companies are responsible for providing accurate, balanced,
and scientifically valid data on products.
5. Promotion must be ethical, accurate, balanced, and must not be misleading.
Information in promotional materials must support a proper assessment of the
risks and benefits of the product and its appropriate use.
6. Pharmaceutical companies will respect the privacy and personal information
of patients.
7. All clinical trials and scientific research sponsored or supported by companies
will be conducted with the intent to develop knowledge that will benefit
patients and advance science and medicine. Pharmaceutical companies are
committed to the transparency of industry-sponsored clinical trials in patients.
8. Pharmaceutical companies should adhere to both the spirit and the letter of
applicable industry codes. To achieve this, pharmaceutical companies will
ensure that all relevant personnel is appropriately trained.
3. Research Methodology
3.1. Research Design
This research paper is based on quantitative research design using survey data. A
deductive approach is used for developing hypotheses based on existing theory and
then designed the research strategy to test the hypothesis. The respondent’s
perception towards the code of ethics which were identified in this study (i.e., journal
publication, sponsors and give away for doctors, and quality of medicine promotional
officers) was quantitatively explained.
- 44 -
since the sample is narrowed to Kurunegala District. The sample size is 120
respondents (n=120), and 30 respondents were selected from each group. The
respondents include both males and females.
- 45 -
Table 02: Demographic Profile of the Sample
The responses for the first part of the questionnaire (i.e., the demographic factors)
were in the frequencies that simply refer to the number of times various subcategories
of certain factors occur from which the percentage and the cumulative percentage of
their occurrence were calculated.
Table 02 reveals that the sample was comprised of 120 respondents and 30 members
representing each group (i.e., physician, medicine promotional officers,
pharmaceutical retailers/pharmaceutical companies and patients). Among them,
66.7 percent of respondents were male, and the balance was female. 40.8 percent
accepted that they have studied up to the degree (or equivalent). The reason for this
extraordinary percentage is 25 percent of the sample is comprised of physicians, with
MBBS degree.
Table 03 shows that an equal percentage of male and female doctors represented the
sample. Among them, 20 percent were Consultant/Specialist (CON), and the balance
was General Practitioner (GPR).
- 46 -
All medicine promotional officers in the sample were male officers. Interestingly,
26.7 percent of them were obtained a degree (or equivalent), and another 33.3 percent
have a diploma level education.
According to the figures in Table 05, male pharmacists were dominating the sample
with a simple majority (56.7 percent). 16.7 percent of pharmacists were studied up to
the degree (or equivalent) level.
Table 06 indicates that among the patients, 60 percent were male patients. All the
patients were greater than 50 years of age, and the majority (53.3%) of them were in
the age range between 61 to 70 years of age. Also, 20 percent accepted that they have
a degree (or equivalent) level of tertiary education.
- 47 -
Table 07: Perception of ethical behavior of the Pharmaceutical Industry
Questions PHY MPO PHM PAT
Would you agree with a professional Mean 3.833 1.567 1.600 3.833
Public Advertising for medicine
SD 1.289 1.135 1.221 .792
prescribed by Doctors?
Does a Patient, in your opinion, have the Mean 4.000 4.133 4.033 4.300
right for professional information from
different sources than the Doctor or the SD .000 .346 .414 .466
Chemist?
Do you think that the Medicine Mean 3.933 3.433 4.200 4.533
Representatives should have a certificate
of professional end ethical capability to SD .980 1.906 .997 .681
execute a given profession?
Would you consider it right to regulate Mean 4.167 4.433 3.533 4.200
several visits of the Medicine
SD .379 .504 .973 .407
Representatives at the Doctors?
Do you think that the Pharmaceutical Mean 4.200 3.367 3.600 4.667
Companies should give samples of
SD .761 .999 .932 .479
medicine to the Doctors?
Do you think there should be a national Mean 4.333 3.900 4.033 4.333
web page guaranteed by the Ministry of
Health focused on the issues of disease SD 1.028 1.583 1.299 .480
and, medicine?
Do you agree that the Pharmaceutical Mean 4.633 4.000 3.867 4.500
Companies invite Doctors to
SD .809 .371 .937 .629
International Congresses?
Should the companies publish the names Mean 3.933 3.467 3.400 4.567
of the Doctors invited to an International
SD .828 .860 1.133 .504
Congress?
Do you think that there should be an Mean 4.467 4.067 3.900 4.167
independent committee that would decide
about the choice of the Doctors invited to
International Congresses and that would SD .507 .944 .607 .379
be financed by the Pharmaceutical
Companies?
Do you think Pharmaceutical Companies Mean 4.533 3.800 3.967 4.600
should sponsor for innovations identified
SD .819 1.627 .669 .622
in national medical research agenda?
Mean 4.500 3.300 3.567 4.233
- 48 -
Drug Company provides an unrestricted
monitory gift to a National Medical SD .820 1.489 1.165 .568
Institute; it can be used in any
educational purposes?
Would you consider that the Medical Mean 4.267 3.833 4.000 4.267
Representative Product promotional visit
SD .583 1.341 .909 .449
on Doctors has to be regulated?
Do you think Pharmaceutical Companies Mean 4.133 3.067 3.633 4.300
need to give “sample packs” to the
SD .899 .828 .668 .466
prescribing Doctors?
Do you agree: Drug Company
Representative offering practitioner:
Mean 3.500 2.667 2.967 4.433
A pen and a pad are carrying the
brand name of a new drug. SD .682 1.061 1.098 .504
Statistics in Table 4.6 reveals that Physician ranked their answers in between 𝑥̅ = 3.5
(statement 14.a) to 𝑥̅ = 4.6 (statement 07) with the overall mean value of 4.13 (SD =
0.320).
Whereas, the Medicine promotional officers ranked their answers in between 𝑥̅ = 1.6
(statement 01) to 𝑥̅ = 4.4 (statement 04) with the overall mean value of 3.49 (SD =
0.678). For the same statements were posed to Pharmacists, and they have ranked
their answers in between 𝑥̅ = 1.6 (statement 01) to 𝑥̅ = 4.2 (statement 03) with the
overall mean value of 3.56 (SD = 0.642). Patients ranked their answers in between 𝑥̅
= 3.8 (statement 01) to 𝑥̅ = 4.7 (statement 14.b) with the overall mean value of 4.35
(SD = 0.229).
- 49 -
The fairly similar perception was discovered between Physicians (𝑥̅ = 4.13, SD =
0.320) and Patients (𝑥̅ = 4.35, SD = 0.229). Both respondent groups have expressed
their views by ranking the attitudinal statements of the underlying phenomenon as
“Agreed.” Whereas, Medicine promotional officers (𝑥̅ = 3.49, SD = 0.678) and
Pharmacists (𝑥̅ = 3.56, SD = 0.642) have expressed their neutralism in general
towards the ethical behavior of the Pharmaceutical Industry in Sri Lanka.
In this study, the code of ethics are grouped into four categories, namely (1) journal
publication (i.e. Education through journals, brochures, medical leaflets - for doctors
and patients), (2) Sponsorship and Free sampling (i.e. Sponsoring clinical meeting,
foreign trips, and free sampling), and (3) quality of medicine promotion officers. The
respondent’s perception is summarized in Table 08.
- 50 -
right to have professional information from different sources than the doctor or the
chemist, (Q6) having a national web page guaranteed by the Ministry of Health
focused on the issues of disease and, medicine, (Q10) pharmaceutical companies
sponsoring for innovations identified in national medical research agenda, and (Q11)
using unrestricted monitory gift provides by drug company to a National Medical
Institute for any educational purposes.
Six attitudinal statements explaining the underlying phenomenon of “sponsoring a
clinical meeting, foreign trips, and free sampling” in the pharmaceutical industry were
formulated and administered with the respondents. Both Physicians (𝑥̅ = 4.07, SD =
0.453) and Patients (𝑥̅ = 4.41, SD = 0.16) agreed that the sponsoring clinical meeting,
foreign trips, and free sampling happen ethically. They have indicated positive
perceptions towards: (Q5) the providing samples of medicine to the doctors, (Q7)
pharmaceutical companies invite doctors to international congresses, (Q8) publish the
names of the doctors invited to an international congress, (Q9) establish an
independent committee that would decide about choice of the doctors invited to
international congresses and that would be financed by the pharmaceutical
companies, (Q13) giving “sample packs” to the prescribing doctors, (Q14)
representative offering practitioner to various materials and events.
Nevertheless, Medical promotion officers (𝑥̅ = 3.43, SD = 0.357) and Pharmacists (𝑥̅
= 3.52, SD = 0.361) have expressed that they neither agreed nor disagree with
ethicality of the sponsoring clinical meeting, foreign trips, and free sampling in the
pharmaceutical industry.
Three attitudinal statements explaining the underlying phenomenon of “quality of
medicine promotion officers” in the pharmaceutical industry were formulated and
administered with the respondents. Interestingly, all respondents have indicated
positive perceptions (𝑥̅ > 3.50) towards the professional qualifications of the
Medicine Promotional Officers (Medical Representatives) and ethical capability to
execute a given profession. They all agreed that the medicine representatives should
have a certificate of professional end ethical capability to execute a given profession.
Also, they consider it right to regulate several visits of the medicine representatives
at the doctors, and the medical representative product promotional visit on Doctors
has to be regulated.
A One-way ANOVA was employed to compare the means of independent groups to
determine whether there is statistical evidence that the associated population means
are significantly different. These results are given in Table 09.
- 51 -
Table 09: ANOVA – a type of respondents and perception of ethical behavior in
the Pharmaceutical Industry
Journal Publication
Between Groups 22.344 3 7.448 17.112 .000
Within Groups 50.488 116 0.435
Total 72.832 119
Sponsorship and Free Sampling
Between Groups 19.446 3 6.482 52.762 .000
Within Groups 14.251 116 0.123
Total 33.697 119
Quality of Medicine Promotion Officers
Between Groups 3.785 3 1.262 2.048 .111
Within Groups 71.459 116 0.616
Total 75.244 119
- 52 -
5. Conclusion
The fairly similar perception was discovered between Physicians and Patients
towards the code of ethics of the pharmaceutical industry in Sri Lanka. They are in
the view that the code of ethics is maintained in the pharmaceutical industry up to the
acceptable standards.
They have indicated positive perceptions towards the professional public advertising
for medicine prescribed by doctors, patient’s right to have professional information
from different sources than the doctor or the chemist, having a national web page
guaranteed by Ministry of Health focused on the issues of disease and, medicine,
pharmaceutical companies sponsoring for innovations identified in national medical
research agenda. Usage of unrestricted monitory gifts provided by drug companies
towards National Medical Institute for any educational purposes, providing samples
of medicine to the doctors, arranging international congresses for doctors and publish
the names of the doctors invited to an international congress in medical journals.etc.
Establishing an independent committee that would decide about the choice of the
doctors invited to international congresses and that would be financed by the
pharmaceutical companies, giving “sample packs” to the prescribing doctors, and
representative offering practitioner to various materials and events are the strategies
can be deployed to achieve the objective. However, the Medicine promotional
officers and Pharmacists have expressed their neutralism towards the same.
In this study, the code of ethics are grouped into four categories, namely (1) journal
publication (i.e. Education through journals, brochures, medical leaflets - for doctors
and patients), (2) Sponsorship and Free sampling (i.e. Sponsoring clinical meeting,
foreign trips, and free sampling), (3) qualifications of medical promotion officers.
Both Physicians and Patients agreed that the “journal publication” in the
pharmaceutical industry ethically take place. Nevertheless, Medical promotion
officers and Pharmacists have expressed that they neither agreed nor disagree with
ethicality of the Journal publication in the pharmaceutical industry.
Same as the journal publication, both Physicians and Patients agreed that the
“sponsoring clinical meeting, foreign trips, and free sampling” happens ethically in
Sri Lankan pharmaceutical industry, whereas Medical promotion officers and
Pharmacists have expressed that they neither agreed nor disagreed with ethicality of
the sponsoring clinical meeting, foreign trips, and free sampling in pharmaceutical
industry.
Interestingly, all respondents have expressed their positive perception of the quality
of the medical promotion officers. All agreed that the medicine representatives should
have a certificate of professional end ethical capability to execute a given profession.
They consider it right to regulate several visits of the medicine representatives at the
- 53 -
doctors, and the medical representative product promotional visit on Doctors has to
be regulated.
A One-way ANOVA was employed to compare the means of independent groups to
determine whether there is statistical evidence that the associated population means
are significantly different. The results that the perception of physicians, patients,
pharmacists, and medicine promotion officers are significantly different towards the
perception level of the ethicality of journal publication and sponsorship and free
sampling in the pharmaceutical industry in Sri Lanka. However, no significant
difference found between the group towards the quality of medicine promotion
officers.
Moreover, the results in correlation analysis confirmed that there is no
statistically significant relationship between the level of education of physician,
medicine promotional officers, pharmacists and patients and their perception towards
the code of ethics of the pharmaceutical industry in Sri Lanka.
References:
AMA, (2018), Official Webpage of American Medical Association
https://www.ama-assn.org/delivering-care/ethics/code-medical-ethics-
overview
Beauchamp, J., (2013), Principles of Biomedical Ethics, Journal of Principles of
Biomedical Ethics, Volume 07
Beth A. Lown, and Karen E. Victor, (2018), Should a Physician Offer
Recommendations Based on Experience but Contrary to Current Practice
Guidelines? AMA Journal of Ethics: illuminating the Art of Medicine, Volume
20, Number 11
Brendan Shaw and Paige Whitney, (2016), Ethics and compliance in global
pharmaceutical industry marketing and promotion: The role of the IFPMA and
self-regulation, Pharmaceuticals Policy and Law, Volume 18, pp.199–206
Bryan A. Sisk, and Jennifer W. Mack, (2018), How Should We Enhance the Process
and Purpose of Prognostic Communication in Oncology? AMA Journal of
Ethics: illuminating the Art of Medicine, Volume 20, Number 8, pp. 757-765
Caplan L., (2018), Medical Ethics: Making Challenging Decisions, Medscape
Physician Business Academy
Gennaro, A, (1990), Remington’s Pharmaceutical Sciences, 18th edition. Easton, PA:
Mack Publishing Company.
http://www.businessdictionary.com/definition/code-of-ethics.html
- 54 -
IFPMA Code of Practice, (2012), International Federation of Pharmaceutical
Manufacturers & Associations
IFPMA, (2012), Code of Practice 2012, Essential medicines and health products
information portal - World Health Organization resource
Jayampathy Jayasinghe, (2018), Pharma industry's issue with authorities, Sunday
Times (Sri Lanka), 16th September 2018
JeffreyFrance, Jose Zamarriego Izquierdo, Tamara Music, Kirti Narsai, Chrisoula
Nikidis, Heather Simmonds, and Paul Woods, (2014), Ethical pharmaceutical
promotion and communications worldwide: codes and regulations, Philos
Ethics Humanit Medicine, Volume 9, Number 7
John W. Dailey, (2018), Pharmaceutical industry Britannica articles, Encyclopædia
Britannica, Inc.
Kipnis K, (1990), Professional ethics in health care: an introduction, Hawaii Medical
Journal, Volume 49, Number 8, pp. 292-294
Kwon I, (2012), Medical ethics as professional ethics, Korean Journal Gastroenterol,
September, Volume 60, Number 3, pp.135-9.
Noordin MI, (2012), Ethics in Pharmaceutical Issues, Contemporary Issues in
Bioethics, University of Malaya
OMC, (2016), Code of Medical Ethics, The Spanish Medical Association
Pooneh Salari, Hamidreza Namazi, Mohammad Abdollahi, Fatemeh Khansari,
Shekoufeh Nikfar, Bagher Larijani, and Behin Araminia, (2013), Code of ethics
for the national pharmaceutical system: Codifying and compilation, Journal of
Res Med Sci., May, Volume 18, Number 5, pp. 442–448
Rachel Thomas, (2017), Pharmaceutical Industry Ethics, January 19, 2017, Seven
Pillars Institute
Rajadhar Reddy and Danielle Hahn Chaet, (2018), AMA Code of Medical Ethics’
Opinions Related to End-of-Life Care, AMA Journal of Ethics: illuminating the
Art of Medicine, Volume 20, Number 8, pp. 738-742
Riddick Frank, (2003), The Code of Medical Ethics of the American Medical
Association, The Ochsner Journal, Volume 5, Number 2, pp. 6–10
Scott J. Schweikart, (2018), Constitutional Regulation of Speech (and False Beliefs)
in Health Care, AMA Journal of Ethics: illuminating the Art of Medicine,
Volume 20, Number 11
- 55 -
KILLER CRASHES IN SRI LANKA: A DESCRIPTIVE ANALYSIS
OF TRENDS AND FACTORS
Premathilake IP1, Samarakoon SMRK2, and Perera DAM2
1
Faculty of Postgraduate Studies, KEISIE International University, USA
2
Faculty of Business Studies and Finance, Wayamba University of Sri Lanka, Kuliyapitiya,
Sri Lanka
indikaprasannap@gmail.com
Abstract
- 56 -
1. Introduction
“Road traffic accidents —the main source of death by damage and the
tenth-driving reason for all deaths internationally—presently make up
a significant portion of the overall weight of sick wellbeing.”
1.2 million Individuals die in street crashes every year, and 50 million are harmed,
possessing 30% to 70% of them in orthopedic beds creating countries hospitals
(Mohan, 2002). If these present patterns proceed, street traffic injuries will be
anticipated to be the third-driving supporter of the worldwide weight of infection and
damage by 2020 (Christopher et al. 1996). World Health Organization (WHO)
strategy of 2001 reports that the numbers of deaths resulting from road traffic crashes
have been projected to reach 8.4 million in the year 2020 (Perera and Senevirathne,
2014).
Developing countries bear a larger share of the burden, representing 85 percent of
yearly deaths and 90 percent of the disability-adjusted life years (DALYs) lost on
account of street traffic injury (WHO, 2006). Since street traffic injuries influence
mainly on males (73 percent of deaths) those who are in the range of 15 to 44 years
of age, this burden is made tremendous economic barrier due to the loss of family
breadwinners.
A road traffic accident is now considered as a global issue. It is a cause of concern
in Sri Lanka since the increasing number of accidents are among the leading causes
of death in many parts of the country (Ranasinghe and Perera, 2014).
Section 10 of the Motor Traffic (Amendment) Act No. 8 of 2009 defines the
fatal accident as “an accident involving a single moving vehicle or several
moving vehicles in which one or more persons are killed within 30 days of
such accident.”
“Accident is an undesired or unintended happening. Inevitable accident falls
within the concept of act of god or damnum fatal or an Unfortunate harmful
event, event without apparent cause unexpected occurring…, A Motor Traffic
Accident occurs on highway collision with Vehicles, persons or with the
property.
Whereas the term “traffic” is defined in Section 240 of the Motor Traffic Act
which includes bicycles, tricycles, motor vehicles, tram cars, vehicles of every
description, pedestrians, processions, and bodies of troops, and
all animals being ridden, driven or led. The use of tram cars as a mean of public
transportation was abandoned many decades ago. However, this section itself
- 57 -
is explanatory of major causes contributing to the ever-increasing problem of
road traffic trauma in Sri Lanka.
Moreover, Accidents may occur between a vehicle and another vehicle,
Vehicle colliding with a person, Vehicle colliding with movable or unmovable
property, When a vehicle goes off the road, A person being knocked down with
another person, Due to natural or human-made disaster.”
Therefore, this paper aims to study the Sri Lankan road accident statistics by using
the descriptive statistical analysis and identify the trends and patterns by analyzing
data of the past ten years obtained from Sri Lanka Traffic Police.
2. Literature Review
Somasundaraswaran (2006) analyzed accident statistics of Sri Lanka during 1989-
2005. The results of this study revealed that the main reason for the rapid increase of
traffic accidents is due to the alarming rate of vehicle ownership, together with
inadequate road network development to support the demand. Haadi, A. R (2012)
conducted a case study on the identification of factors that cause the severity of road
accidents in Ghana: Northern Region. The objective of the study was to identify the
variables that mainly contribute to accident severity in the Northern Region and to
describe the impact of these variables. In this study, the binary logistic regression was
applied to a total of 398 accident data from 2007-2009 collected from motor transport
and traffic unit (MTTU) Northern Region traffic-police records. The results of this
study revealed that among the 398 records, 3.1% involved minor injuries. The rest
were considered as accidents with fatal injuries (98.7%). The conclusion of the
research expressed that most significantly associated with accident severity were
overloading and obstruction.
Ranasinghe and Perera (2014) investigated the spatial profile of road traffic accident
black-spots through the use of motor traffic statistics in Western Province. The
preliminary results suggest that the accident occurred was increasing every year,
passengers and pedestrians are always at highest risk of being injured or killed on the
road; young males are highly prone to motor traffic accidents. It was found that the
higher densities of accidents in Western Province are along major roads such as
Kohuwala-Piliyandala road, Kandy-Kadawatha road, and Jaela-Gampaha road.
Lack of centerlines, signboards, speed controls, road crossings, and existence road
obstructs to the driver right side vision entering to the main road were identified as
contributory factors to motor accidents black spots in Western Province.
Senuraj et.al, (2015) studied road accidents based on Jaffna police records, 692
accident cases were considered during the period 2010-2013. The variable “Accident
severity” (Fatal/Non-fatal) is considered as a dichotomous response variable, and the
- 58 -
factors Time, Location, Type of vehicle, Gender, License status, Cause of accident,
and Type of accident are treated as influencing factors on the accident severity. The
main focus of this study was to identify the most influential factors involved in
accident severity. Because of the binary nature of the response variable, the logistic
regression approach was utilized for the analysis. After a series of statistical analyses
were conducted, independent variables “Type of vehicle” and “Age” were identified
as more influential variables influencing the accident severity. Results from this study
reveal that the fitted logistic regression model can be used for the safety
improvements against the traffic accidents in Jaffna.
Perera and Sanjeewa (2016) investigated the impact of hard-rock, hip-hop, and
classical music on motor accidents. Predominantly, it investigates whether music can
evoke a sense of power and produce power-related cognition and behavior of vehicle
drivers. Their finding suggests that all types of inside-music, except classical music,
has increased participants' sense of power, and contributed to the motor accidents.
The research of Perera and Senevirathne (2014) has focused on investigating and
identifying factors contributing to high rates of road traffic accidents in Kurunegala
District, Sri Lanka. The results suggested that the “behaviors” of drivers in ‘at fault’
motor accidents given a prominence impact on a road traffic accident, and it follows
by the “environment condition,” and the “quality of the vehicle.” Also, researchers
have established that both driving skills and driving style can be caused by accidents.
Particularly overtaking in risky situations was found to be the main cause for road
traffic accidents and it accounted for 78 out of the 156 accidents. According to the
statistics, the average age of drivers responsible for motor accidents is in between 21
to 30 years, and this is significantly higher than the group 31 to 40 years.
3. Methodology
Data on road accidents, which was collected from Sri Lanka Traffic Police from the
year 2008 to 2018 were utilized, and descriptive statistical analysis was conducted.
Analysis carried out by considering various factors such as day of the week, the month
of the year, an hour of the day and trends were taken into consideration for analysis.
- 59 -
4. Data Analysis and Discussion
4.1. Total vehicle population in Sri Lanka and Responsible vehicles for
Accidents
It can be seen continuous growth in vehicle population in Sri Lanka from 2008
(3,390,993) to 2018 (7,727,921). After the civil war, roads including highways and
other infrastructure were developed, and the transportation system in Sri Lanka has
now been in a developed stage up to some extent although there are some aspects to
be developed and being developed. Further, with the inclines of the per capita income,
several private vehicle owners have become larger.
Figure 1: Total vehicle population in Sri Lanka from 2008 to 2018. (Source: Sri
Lanka traffic police)
The breakdown of the vehicle population of the year 2018 is depicted in figure 2.
- 60 -
Total Vehicle Population of Sri Lanka Year 2018
0.04%
0.01% 0.91% 0.01% 0.00%
0.12% 0.15% 0.01%
Motor Cars
0.08%
4.77% Motor Tricycles
4.40% 10.84%
Motor Cycles
1.43% 5.51%
Buses
Dual purpose vehicles
15.01%
Motor Lorries
Prime Movers
Lorry Trailers
Lorry Others
Ambulances
Hearses
56.73% L.V. tractors
N.A. Tractors
L.V. Trailers
Figure2: Total vehicle population in Sri Lanka – 2018. (Source: Sri Lanka traffic
police)
In the year 2018, the population of motorcycles (4,383,773) represents the largest
percentage while motor tricycles (1,159,587) and motor cars have become the second
and third highest places, respectively. Considering the vehicles which are responsible
for the accidents, the most accountable vehicle type for accidents is the motorcycle.
(Table 1) Surprisingly, lorries are the second blamable vehicle category for the
accidents while three-wheels and cars are reaching the third and fourth places
respectively.
Table 01: Types of vehicles accountable for Accidents: the year 2017 and 2018
(Source: Sri Lanka traffic police)
2017 2018
Responsible Vehicles Fatal Deaths Fatal Deaths
Motor cycles 1253 1297 1240 1275
Lorries 373 399 348 367
Three Wheels 364 395 368 395
Cars 205 226 211 230
Vans 203 225 197 209
- 61 -
Privet Buses 194 218 239 254
Cab 87 96 89 95
C.T.B. Buses 59 67 62 62
Tractors 38 38 30 30
Cycles 41 41 43 43
Jeeps 33 36 36 36
Containers 19 20 14 15
Bowsers 6 6 15 15
L.V. Tractors 2 2 1 1
Others 4 4 5 5
Tip & Run 84 84 79 79
Total 2965 3154 2977 3111
- 62 -
Fatal Accedents From Year 2009-2018
3500
2977
3000
2500
2000
1500
1000
500
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Figure 3: Fatal Accidents 2009-2018 (Source: Sri Lanka traffic police) (Dotted
line: Linear Trend Line)
1000
800
600
400
200
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
1000
800
600
400
200
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Figure 6: Trend Analysis of Deaths 2008-2018. (Source: Sri Lanka traffic police)
- 64 -
Table 02: Deaths due to accidents from 2008-2018 (Source: Sri Lanka traffic
police)
Motorcyclists
Pedestrians
Passengers
Category
Drivers
Cyclist
Others
Pillion
Total
2008 748 621 167 235 203 328 26 2328
2009 785 635 153 265 224 343 8 2413
2010 898 712 194 281 210 409 17 2721
2011 848 697 195 266 214 442 15 2677
2012 774 682 153 231 206 387 11 2444
2013 686 668 135 258 194 404 17 2362
2014 728 744 173 227 159 399 10 2440
2015 808 837 189 202 502 266 13 2817
2016 883 950 205 246 255 476 5 3020
2017 959 1024 195 295 242 432 7 3154
2018 949 1029 209 254 235 429 8 3113
- 65 -
Fatal Accidents - Monthly Analysis Year 2014-2018
350
300
250
200
150
100
50
- 66 -
Deaths Due to Accidents - Monthly Analysis - year 2014-2018
350
300
250
200
150
100
50
- 67 -
Deaths Due to Accidents - Analysis based on the Day of The
Week -year 2014-2018
900
800
700
600
500
400
300
200
100
0
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
Figure 9: Deaths due to Accidents – Analysis based on the day of the week: 2014-
2018. (Source: Sri Lanka traffic police)
- 68 -
Fatal Accidents -Analysis Based on the Hour of the Day - year
2013-2018
600
500
400
300
200
100
0
0600 - 0800 - 1000 - 1200 - 1400 - 1600 - 1800 - 2000 - 2200 - 2400 - 0200 - 0400 -
0800 1000 1200 1400 1600 1800 2000 2200 2400 0200 0400 0600
Figure 10: Deaths due to Accidents – Analysis based on the hour of the day: 2013-
2018 (Source: Sri Lanka traffic police)
4.6. Age Analysis
From 2016 to 2018, nonlinear fluctuation can be observed in the number of accidents
in the age category between 0 to 71 and above. Unfortunately, a maximum number
of deaths occurred among the senior citizens who are above 71 years due to road
traffic accidents from 2016 to 2018. Youth between the age group of 21-25 were
prone to death as the second most. (Figure 10). For some reason, the least number of
deaths were found with the children between 6-10 than the infants of 0-6, which is
supposed to be further researched. Collectively, it is observed that the accidents of
children between 0-15 have a drastic decline comparing with the other age groups.
In contrast with the deaths, the highest number of injuries due to accidents were
recorded among the youth between the ages of 21-25 years in 2017. Age 16-40
categories recorded the highest injuries comparatively. Overall, the youth of 21-25
have the most tendency to meet with accidents over the period. Overall a small incline
was observed in the number of children meet with road accidents between the ages of
0-15, and a drastic incline is observed among the youth between 16-25 which reaches
- 69 -
the maximum at the ages between 21-25 and a small decline after that up to the age
of 71 and above over the total period. (Figure 11)
Furthermore, an upward trend can be observed until the responsibility is optimized at
the age group of 31-35 among the drivers who are accountable for road accidents and
then a small decline up to the age group of 71 and above. No wonder there were no
drivers observed between the ages of 0-11. Amazingly, a minimal number of road
accidents have occurred between the ages of 11-15. Overall children and senior
citizens cause few accidents. (Figure 12)
Therefore the most responsible age group for the accidents during the period 2016-
2018 are the individuals who are between the ages of 31-35 years. However, age 21-
40 age groups represent the majority of the drivers. Further research is supposed to
be conducted to analyze the age factor for accidents, including psychological factors.
400
350
300
250
200
150
100
50
0
00 - 6-10 11-15 16 - 21 - 26 - 31 - 36 - 41 - 46 - 51 - 56 - 61 - 66 - 71 +
05 20 25 30 35 40 45 50 55 60 65 70
Figure 10: Deaths due to Accidents – Analysis based on the age of the victim:
2016-2018 (Source: Sri Lanka traffic police)
- 70 -
Injuries Due o Accidents: By Age 2016-2018
6000
5000
4000
3000
2000
1000
0
00 - 6-10 11-15 16 - 21 - 26 - 31 - 36 - 41 - 46 - 51 - 56 - 61 - 66 - 71 +
05 20 25 30 35 40 45 50 55 60 65 70
Figure 11: Injuries due to Accidents – Analysis based on the age of the victim:
2016-2018 (Source: Sri Lanka traffic police)
6000
5000
4000
3000
2000
1000
0
00 - 6-10 11-15 16 - 21 - 26 - 31 - 36 - 41 - 46 - 51 - 56 - 61 - 66 - 71 +
05 20 25 30 35 40 45 50 55 60 65 70
Figure 12: Age of the responsible drivers for fatal accidents: 2016-2018 (Source:
Sri Lanka traffic police)
- 71 -
5. Conclusion
Analysis of the road accidents in Sri Lanka shows that fatal and non-fatal accidents
are increasing with the time as well as with the increase of the vehicle population.
The motorcycle is the most responsible vehicle for fatal accidents as well as deaths
during the period of 2008 to 2018. Furthermore, pedestrians and motorcyclists are the
major victims of fatal accidents, and these two categories have an upward trend
during the period, which was analyzed.
Festive seasons in Sri Lanka, falling in April, December and January recorded the
highest number of fatal accidents and deaths throughout the investigation. Generally,
days of the week has not made a major impact on fatal accidents. However, Fridays
and Saturdays of the year 2016 have made a drastic incline of road accidents.
Significantly, r the highest number of fatal accidents were occurred during 1800-
2000 hours during the week over the total period, which was scrutinized by this study.
The most unfortunate age group who fell into the death was senior citizens who were
above the age of 71 due to accidents and individuals within the age group 21-25 was
reported the second-highest number of deaths. However, the optimum number of
injuries were observed between the age group 16-40 who are also responsible as
drivers in fatal accidents who fall in the age group of 21-41
The number of fatal accidents and severe injuries, resulting from road accidents, may
be reduced by applying an integrated approach to safety on roads. The strategies and
programs for improving road traffic should include the following measures: reducing
the risk of exposure to an accident, prevention of accidents, reduction in bodily
injuries sustained in accidents, and reduction of the effects of injuries by the
improvement of post-accident medical care can be recommended to reduce this trend.
These findings can be used by policymakers and the other interested parties to take
necessary actions to minimize the accidents.
- 72 -
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One DALY is roughly equivalent to one healthy year of life lost. For more on the
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- 74 -
IMPACT OF ONLINE BANKING: A COMPARATIVE ANALYSIS
OF PUBLIC VS PRIVATE BANKS
Ihalagedara TN1 and Perera DAM2
1
Faculty of Postgraduate Studies, KEISIE International University, USA
2
Faculty of Business Studies and Finance, Wayamba University of Sri Lanka, Kuliyapitiya,
Sri Lanka
thanuja@himaletrade.com
Abstract
“Digital” is the new whispering word in the banking sector, with banks all around the
globe shifting towards digitalization. Digital banking is part of the broader context
for the move to online banking, where banking services are delivered over the
internet, and it is adopted by many banks to cater complex customer needs of modern
society. Banks are closely monitoring the impact of digital banking experiences by
their customers. Banks have invested a lot to bring revolutionary transformation
through any time and anywhere banking with ultra-fast response times. The study
also investigates the impact of e-banking on banking operations between public and
private sector banks in Kurunegala District. It is also investigated the relationship
between the customer perception of e-banking services and their satisfaction. The
quantitative research approach has been adopted in this research, and primary data
was collected through questionnaires randomly presented to 179 customers in
Kurunegala District, Sri Lanka. The collected data was analyzed using of Statistical
Package for Social Sciences (SPSS: Version 25) and the software named One-way
ANOVA and Pearson’s Correlation Coefficient was used to test independence and
the relationship between the customers’ perception of e-banking services, customer
satisfaction and the influence by the customer demographics (age and gender) factors
on customer perception towards e-banking services. The results showed that different
age groups and gender groups of customers have different perception towards e-
banking services offered by public and private commercial banks. The outcome also
proposes that several e-banking techniques, such as ATM services, Telephone
banking services, and Mobile banking services, make a significant impact on
customer satisfaction. Finally, the findings of this paper would support public and
private banks to understand the customer’s perception regarding the e-banking
services in a broader spectrum.
Keywords: Banking operations, Customer perception, E-banking, Technology
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1. Background
Banks are being forced to change their strategies to receive competitive advantages.
Banking is one of the sectors that technological progress is monitored closely and
used widespread (Akhisar et.al, 2015). All banks across regions are making massive
investments towards digital transformation to receive competitive advantage and
maximum customers’ attraction. Digitalization provides big data analytics and
intelligence, which enable banks to get closer to customers providing customized
solutions.
Ever growing information infrastructure with high-speed internet and advanced
telecommunications systems have empowered e-commerce at a global level. The
Internet has become the most productive and cost-effective business tool today,
creating a new ‘digital economy.’ The Internet was a new way for the distribution of
banking services. The initial form of these online services, which needed a computer,
modem, and software, were presented at the end of 1980 (Mahmood and Steve, 2009).
This fast-growing digital economy with evolving technologies created a virtual
business culture beyond the traditional business model, starting from online shopping
carts to e-banking. As a direct consequence of ‘digital economy,’ it seems that the
balance of power seems to be shifting towards customers.
The electronic banking, which is now commonly known as ‘e-banking’ has embraced
through world wide web and introduction of evolving technologies has brought a big
boost to the banking industry. It has helped the banking industry in several ways,
especially in improving its customer relations and convenience. Most of the
customers are migrating to e-banking and are enjoying the benefits of this modern
trend in the banking sector. Digital banking platform allows customers to channel
their transactions from anywhere at any time at a minimal cost. New digital banking
channel has given an extra opportunity for banks to deliver products and services to
their customers. Users in the modern era need a powerful digital experience, and they
are willing to switch banks to get it. It is observed that new generations would
consider branchless digital experience based on their high-level technical
competencies.
Banking industry perspective more recently in Sri Lanka, the e-banking service is
carried out in an effective way to cater to modern-day customer requirements. Hence,
we are living in a digital age waiting in a queue, spending precious time, which will
lead us to go backward. Therefore, the customers do not want to waste their precious
time in a bank queue. The focal purpose of this paper is to investigate the impact of
e-banking on banking operations. Also, it explores the customer’s perception of e-
banking services in public and private banks in the Kurunegala District.
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1.1. Research Objectives and Hypothesis
The main objective of this study was to explore the impact of technology on banking
operations between public and private sector banks in the Kurunegala District.
Specific objectives of this study are as follows.
1. To study the customer perception of e-banking services in public and private
banks in Kurunegala District.
2. To study the relationship between customer satisfaction and their perception
of e-banking services.
3. To study the influence of customer demographic factors on customer
perception towards e-banking services.
4. To study the impact of bank ownership on customer perception of e-banking
services.
The hypothesis of this study is drawn to understand the impact of e-banking services
on customer satisfaction in the banking industry. Also, the hypothesis is drawn to
understand the demographic factors of the customers have made an influence on
customer evaluation on e-banking strategies. These hypothesize can be stated as
follows:
H1: Customer perception of e-banking services are likely to have a positive
impact on Customer Satisfaction.
H2: The contrast between the customer perceptions towards e-banking of public
banks vs. private banks are likely to be the same.
H3: Customer Demographics in public and private banks seems to have an impact
on customer perception towards e-banking services
Customer
Demographics
Customer Bank
Perception Ownership
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2. Literature Review
2.1. Electronic banking
Electronic banking has become one of the most inventive services offered by
commercial banks today. The transformation began introducing automatic teller
machines, (ATM) in early days and new digital platform with modern self-banking
units handle direct bill payment, electronic fund transfer (EFT), etc. Online banking
is becoming popular among customers with growing awareness.
With the introduction of the Internet and the World Wide Web (www), companies
recognized Information Technology (IT) as a tool of doing business while consumers
are acknowledging it as not only an opportunity to purchase goods over the internet
and services but also to obtain information. Adoption of digitalization has totally
changed the conventional banking in business, and also, technology adoption has
reduced transaction cost of banks, which has effectively helped to enhance the
profitability of the banks. It is categorized as electronic banking (Stephen and Abdil,
2011). Conventional banking has been stepped back with this new arrival of
transactions through the electronic means without the customer visiting the premises
where the bank is situated to carry out a banking transaction. For instance, customers
use automated teller machines (ATM) in place of cashier tellers, credit cards, and
electronic cash in place of bank transactions (Alagheband, Parisa, 2006).
E-banking has become a global phenomenon. E-banking is an influential tool which
embraces innovation and growth in competitive environments. The technology-
driven banking industry is an essential strength to a country and can make a
significant impact on economic development. The book was written by Mahmood
Shah and Steve Clarke, (2009) on E-Banking Management: Issues, Solutions, and
Strategies, argue that customers are increasingly demanding more value, with goods
customized to their exact needs, at less cost, and as quickly as possible. To meet these
demands, businesses need to develop innovative ways of creating value, which often
requires different enterprise architectures, different IT infrastructures, and a different
way of thinking about doing business. (Shah, Mahmoud, and Clarke, Steve, 2009).
New digital models have brought stronger customer relationships creating new
sources of value. Building trust is the key to digital banking platform at the time of
customer onboarding. EY Global Consumer Banking Survey conducted in 2014 says
that “the state of digital banking influx is like never before.” In a survey conducted
by Ernst and Young's 2014 global banking data gathered from 32000 retail banking
customers in 43 countries worldwide. They found that customers pointed out five
areas where banks and credit unions could improve namely: simplicity of offers and
transparency of fees, provision of Omnichannel experience, better advice, leveraging
greater use of data and digital channels to empower customers and enhancing problem
resolution experiences.
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2.2. E-channel
There has been progressing and advancement in the banking industry due to the
widespread use of information technology. The trend towards electronic delivery of
products and services is dramatically changing in the financial service industry, where
the shift is partly as a result of consumer demand but also a ruthlessly competitive
environment (Naidu and Paramasivan, 2015). The bankers are persuaded that e-
channels helps in improving their performance.
E-channel, also known as an innovative distribution channel or online banking, is the
mode which is interpreted as the approaches used to deliver financial products using
electronic media such as a personal computer, the telephone, and the internet. Today
most of the banks have created e-channels, instead of traditional banking practices.
They have provided ATMs (automatic teller machines), computer and internet
banking, phone banking and banking kiosks are proving to be alternative means to
benefit from the banking services comfortably and conveniently (Essays, 2018).
In 2007 Petersen and his team attempted to develop a typology of e-marketplace
functionality and then link the typology to the associated value creation potential
of differing types of e‐marketplaces. They concluded that leading e‐marketplaces
have a well‐developed strategy for reaching a particular segment of the buying
community, based on service needs.
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impact is observed for one year lagged dummy. For the intermediation spread and
commission and fee income, our estimations fail to provide any significant
relationship with internet banking.
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2.5. Demographical Views on E-Banking Efficacy
Okey and Stephen (2011) have studies the African perspective on global research and
literature on retail customer adoption of Internet banking. It empirically examines the
influence of seven demographic variables – age, gender, level of education, marital
status, employment status, income level and area of residence – on retail banking
customers’ behaviors toward Internet banking adoption in a major developing African
country – Nigeria. They concluded that gender, level of education, and employment
status are the major demographic affecters of Nigerian banking customers’ attitudes
to Internet banking adoption.
Ayub et.al. (2014) have attempted to study the significance of e-banking opportunities
in Indian sector banks and also have discussed in detail the influence of demographic
factors on the e-banking service quality provided by such banks. Researchers found
that there is a significant influence of demographic factors age, income, and
designation on the e-banking service quality perceptions of the customers.
Ameme (2015) examined the influence of demographic factors on the adoption of
internet banking services in Ghana. The findings of the study revealed that
demographic factors such as gender do not have a significant effect on customers in
adopting and using internet banking services. The study further concluded that there
is a strong correlation between employment status, educational level, and customer
adoption and usage of internet banking services in Ghana.
3. Research Methodology
The mixed research method was used throughout the study, and the primary study
was mainly conducted using research questionnaire and interviews with bank
customers and professional in the industry. The research findings were analyzed using
qualitative data analyses techniques to conclude.
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The data gathered were analyzed using SPSS (Version 25). The 179 data points were
analyzed by using descriptive and inferential analysis. Before the analyses were run,
the data were cleaned to make sure it was the true reflection of what was on the
questionnaires. Outliers were identified and corrected, by running some descriptive
analysis such as mean, standard deviation, minimum, and maximum.
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Most of the survey respondents were male (63.1 percent), and the majority of them
(59.2 percent) accepted that they are married. In terms of age, the majority (37.4
percent) were age between 26-30, and it is followed by the respondents in age
between 31-40 (33.0 percent), and between 18-25 (18.4 percent).
In term of educational background, most of the respondents possessed at least high-
school education (49.7 percent). 21.2 percent has a bachelor’s degree, while those
with a diploma were a close third (19 percent).
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Descriptive Analysis
The respondents were requested to indicate the most valued attributes in the
banking sector. The answers are summarized in Table 03.
Majority ranked the “Trust” as the most valued attribute in selecting a good bank (62
percent), which is followed by the “Quality of Service” (60.9 percent), “Technology
used” (55.3 percent) and the “Location” (33.5 percent). These findings underline the
fact that the new technology can create a strong competitive advantage for a bank
over the others.
Table 03: Which attribute of the bank do you value the most?
Bank Attribute Yes No Total
1. Quality of Service Frequency 109 70 179
Percent 60.9 39.1 100.0
2. Technology used Frequency 99 80 179
Percent 55.3 44.7 100.0
3. Trust Frequency 111 68 179
Percent 62.0 38.0 100.0
4. Location Frequency 60 119 179
Percent 33.5 66.5 100.0
5. Type of the bank Frequency 31 148 179
Percent 17.3 82.7 100.0
6. Ownership Frequency 6 173 179
Percent 3.4 96.6 100.0
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Table 04: Which factor promotes you to use the new techniques in banking?
Bank Attribute Yes No Total
1. Cost-effectiveness Frequency 36 143 179
Percent 20.1 79.9 100.0
2. Technology savvy Frequency 41 138 179
Percent 22.9 77.1 100.0
3. Reduced time of Frequency 129 50 179
transactions Percent 72.1 27.9 100.0
4. Ease of use Frequency 129 50 179
Percent 72.1 27.9 100.0
Table 05: How familiar are you with computer usage level of your bank?
Frequency Percent
Valid No knowledge 6 3.4
Beginner 38 21.2
Average knowledge 93 52.0
Advanced knowledge 39 21.8
Expert in computer 3 1.7
Total 179 100.0
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Table 06: Customer level of usage of Technology
Mode of Technology Yes No Total
1. ATM / Debit card Frequency 165 14 179
service Percent 92.2 7.8 100.0
2. Online banking Frequency 92 87 179
services Percent 51.4 48.6 100.0
3. Electronic Fund Frequency 24 155 179
Transfer Percent 13.4 86.6 100.0
4. Credit card service Frequency 80 99 179
Percent 44.7 55.3 100.0
5. E – payments Frequency 28 151 179
Percent 15.6 84.4 100.0
6. Uses Email Frequency 50 129 179
Percent 27.9 72.1 100.0
7. Connected to the Frequency 14 165 179
Internet at home or Percent 7.8 92.2 100.0
work to do their
financial transactions
Table 07: How frequently do you use the following banking services per month?
Percent Std.
Total Mean
<1 1<2 2<3 3<5 5< Deviation
Branch Banking 179 23.5 34.1 26.8 6.7 8.9 2.37 1.276
ATM 179 8.9 24.0 38.0 23.5 5.6 2.86 1.174
Internet Banking 179 36.3 24.0 24.6 9.5 5.6 1.90 1.587
Telephone Banking 179 86.6 6.7 5.6 1.1 0.0 0.49 0.926
Mobile Banking 179 77.7 7.8 10.1 4.5 0.0 0.74 1.224
38.0 percent of respondents accepted that they use ATM facility 2-3 times per month
on average. 26.8 percent and 24.6 percent accepted that they do branch banking and
internet banking 2-3 times per month, respectively.
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Banks develop creative solutions of how to make full use of the new technology and
how to provide their customers with high online service quality, by which customer
satisfaction can be enhanced. Statistics connecting to customer satisfaction on
technology usage is given in Table 08.
The Likert continuum was used to scale the views of respondents with five choices
(1= extremely dissatisfied, 2= dissatisfied, 3= moderate, 4= satisfied, 5=extremely
satisfied). In term of customer satisfaction, customer perception of ATM services (𝑥̅
= 4.10; SD = .579), Internet banking service (𝑥̅ = 3.68; SD = .667), and Telephone
banking service (𝑥̅ = 3.66; SD = 1.134) are found to be influential factors in the
banking industry. These findings support the first hypothesis of this study, and
therefore, it can be concluded that customer perception of e-banking services have a
positive impact on customer satisfaction.
Descriptive statistics for technology usage in the banking industry are provided in
Table 09, which contained customer satisfaction towards ATM services, Internet
banking services, telephone banking services, and mobile banking services.
As reveals by Table 11, customers are principally satisfied with the services
to offer by both public and private banks (𝑥̅ = 4.01; SD = .731). The correlation
between customer satisfaction and technology usage in banks also measured and
presented in Table 12.
Where:
CST = Customer Satisfaction
ATM = ATM Services
IBS = Internet Banking Services
TBS = Telephone Banking Services
MBS = Mobile Banking Services
From Table 12, several e-banking techniques evidenced significant and moderate
correlation with customer satisfaction. ATM services (r = 230; p<0.01), Telephone
banking services (r = 474; p<0.01), and Mobile banking services (r = 256; p<0.05)
had significant correlation with customers’ satisfaction. However, Internet banking
services (r = 131; p>0.05) was not significantly correlated with customers’
satisfaction. Banks improve ATM services, Telephone banking services, and Mobile
banking services, to enhance customer satisfaction, which may have a significant
impact.
One-way analysis of variance (ANOVA) is used to determine whether there are any
statistically significant differences between the means of two or more independent
(i.e., bank ownership, respondent’s gender, and age) groups. These findings are
summarised in Table 13 and 14.
Table 13: One-way ANOVA – Bank Ownership and Customer Perception of e-
banking services
Sum of Squares df Mean Square F Sig.
ATM Between Groups 3.961 1 3.961 12.608 .000
Within Groups 55.299 176 .314
Total 59.260 177
IBS Between Groups .334 1 .334 .748 .389
Within Groups 53.087 119 .446
Total 53.420 120
TBS Between Groups 4.056 1 4.056 3.276 .075
Within Groups 71.808 58 1.238
Total 75.864 59
MBS Between Groups 35.878 1 35.878 14.869 .000
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Within Groups 149.599 62 2.413
Total 185.477 63
The significance value of Internet Banking Services (p=.389) and Telephone Banking
Services (p=.075) are greater than 0.05, and therefore, there is no statistically
significant difference in the mean value of the perception of customers towards these
two e-banking techniques between the Public Bank and Private Bank respondents.
Yet, the significant values for ATM Services and Mobile Banking Services are lower
than 0.05 (i.e., p<.05), and therefore, a statistically significant difference is found
between the respondents’ perception towards ATM Services and Mobile Banking
Services and the type of respondents.
These findings partially support the second hypothesis of this study, therefore, it can
be concluded that there is a significant difference between the customer perception of
ATM services (F1, 176 = 12.608, p<0.05) and mobile banking services (F1, 62 = 14.869,
p<0.05) in public and private banks.
Using the F distribution, One-way ANOVA technique was used to compare means of
consumer demographics (gender and age) and consumer perception towards e-
banking services of both Public and Private Banks.
Statistics in Table 13 confirm that, other than the customer perception towards ATM
services (F1, 176 = 5.990, p<0.05) and Internet banking services (F1, 119 = 5.481,
p<0.05), no differences found between male and female perception towards
Telephone banking services (F1, 58 = .248, p>0.05), and Mobile banking services (F1,
62 = .080, p>0.05) in public and private banks.
Relating to consumer age and customer perception towards e-banking services, the
significance value of Mobile Banking Services (p=.214) and ATM Services (p=.057)
are greater than 0.05. Therefore, there is no statistically significant difference in the
mean value of the perception of customers towards these two e-banking techniques
between the different age groups. A statistically significant difference is found
between the respondents’ perception towards Internet Banking Services (F4, 116 =
7.409, p<0.05) and Telephone Banking Services (F3, 56 = 93.144, p<0.05) and the age
groups of respondents. These findings partially support the third hypothesis of this
study.
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IMPACT OF EXTENDED MARKETING MIX ON CUSTOMER
SATISFACTION IN STATE BANKING SECTOR
Konara KMN1, Ediriweera IN2, and Perera DAM2
1
Faculty of Postgraduate Studies, KEISIE International University, USA
2
Faculty of Business Studies and Finance, Wayamba University of Sri Lanka, Kuliyapitiya,
Sri Lanka
nisha.konara@gmail.com
Abstract
The study focuses on analyzing the impact of the extended marketing mix on
customer satisfaction within the banking sector. A structured questionnaire method
has been used to collect data from a random sample. The sample customers were
selected randomly to represent different age groups and educational level. The study
used a quantitative research approach to analyze the primary data collected from 80
frequent banking customers. The data were analyzed by using Statistical Package for
Social Sciences (SPSS: Version 25), basically focusing One-way ANOVA and
Pearson’s Correlation Coefficient to identify the level of influence of 7 Ps of the
extended marketing mix on customer satisfaction. According to the research finding
it was noted that the customer satisfaction has a strong and positive correlation with
the product, people and physical environment but Price, Promotion and Process
shows a positive and moderate correlation with the customer satisfaction. However,
there is a nominal correlation between Place and customer satisfaction. Based on the
results, it was noted that means of different age groups, gender, and education levels
have no significant influence when determining customer satisfaction towards
banking services. The findings of this study are especially important for the Banking
sector to develop their marketing strategies and to plan their marketing budgets to
optimize customer satisfaction by providing active competition to the banking sector.
Keywords: Banking Sector, Customer Satisfaction, Extended Marketing Mix,
01. Background
The banking market is comparatively competitive and rapidly changing with
technological changes. Thus, banks need to maintain steady growth while making
sufficient profits. This assures a sufficient dividend payout and a considerable level
of reserves within the bank to reduce the potentially vulnerable conditions due to
external environmental changes.
Within a competitive structure since the products developed within the market is
poorly differentiated, (Cvijovic, et al., 2017) . The banks need to maintain a standard
level of customer relationship management system which provides quality service to
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the customer. This creates an opportunity for the banks to develop a long term
relationship with the customers.
According to Zairi (2000) financial institutions heavily focus on the customer than
letting them go away to assure the future security, and they are heavily depending on
customer focusing on customer satisfaction, loyalty, and retention. Customer
satisfaction is the overall attitude of the customer or behavior towards the particular
service provider or either it can be an emotional reaction towards the customer
expectation gap. (Kotler, 2000) Within the current dynamic environment, customer
satisfaction is comparatively important. Satisfied customers are most likely to share
their experience with others around them.
Similarly, the dissatisfied customers also approach to many other external parties with
their negative experience, which may create reputational damage to the organization.
(Mohsan, et al., 2011)
Banks can use differentiated strategies to create a satisfied and loyal customer.
According to LaBarbera & Mazursky (1983), the organizations should develop long-
lasting customer relationships while satisfying various needs and wants of the
customer which motivate the customers to continue the business with the organization
in an ongoing basis.
Shankar & Chin (2011) identified that the elements in the marketing mix, namely
product, price, place, and promotion are the controllable tools of customer
satisfaction. Thus, the current study focuses on the impact of the extended marketing
mix to create a satisfied customer on the banking sector.
The service marketing mix plays an important role in bank marketing. It consists of
the various elements of a marketing programmer which need to be considered to
successfully implement the marketing strategy and positioning in the markets.
However, it is not clear whether all the elements in the service marketing mix is
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leading to create a satisfied customer within the bank. Further, it will be helpful for
the banking sector to identify the key elements which enhance customer satisfaction
sensitively so that the banks can invest in more in those areas when they develop their
marketing strategy. This study focus on identifying such key elements of the service
marketing mix, which could be useful for the banks to invest in improving customer
satisfaction, which may lead to creating a sustainable customer base.
2. Identify the key elements of the extended marketing mix which has a
significant influence on creating a satisfied customer and
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3. To check whether there is any difference between customer satisfaction based
on the demographic characteristics of the customer.
1.1.c. Research Hypothesis
The hypothesis used to analyze the data is as follows;
H1a There is a positive correlation between the product and customer
satisfaction
H1b
There is a positive correlation between price and customer satisfaction
H1c There is a positive correlation between the place and the customer
satisfaction
H1d There is a positive correlation between the promotion and the customer
satisfaction
H1e
There is a positive correlation between people and customer satisfaction
Customer satisfaction is one of the perspectives of the balanced scorecard and also a
key performance indicator. Thus for any product, it is important to survive within the
competitive market place by differentiation customer satisfaction. Marketing is a set
of steps that deliver value that could be valued by customers, and further, it helps to
create a relationship with customers while providing benefits to the organization.
(Armstrong & Kotler, 2011)
The model was developed by Neil Borden in 1949 with set of 12 elements which
included the product-planning, pricing, branding, personal selling, channels of
distribution, advertising, promotions, display, packaging, servicing, physical
handling, and fact-finding and analysis (Goi, 2009) which later narrowed down to 4
key categories namely product, price, place and promotion (Selim & Habibur, 2015;
Amy, 2007). The businesses need to know about the target customers, their
preferences before they mix the marketing elements to develop a certain marketing
strategy to attract customers (Neelakantam, 2015).
The Product can be either a tangible or intangible outcome of a production process
which fulfills human needs and wants (Amy, 2007). According to Selim, & Habibur
(2015), the product must meet the needs of the target market, and they highlight that
it is important to maintain a good quality when producing a product to retain the
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customers with the business. According to Kotler (2009), a product can be a formal
product which is a physical product bought by consumers to fulfill their own needs
and wants, core product which transfers the benefit with the formal product to the
customer, Augmented product which provide overall satisfaction to the customer
through formal product and system product which provide more add-ons with
augmented product. Neelakantam (2015) stated that features, design, quality, brand
name, packaging, services, and variety are the key tools which assured customer
satisfaction in terms of product.
Price is the amount paid for a product by the customer to purchase the product
(Neelakantam, 2015; Amy, 2007) or it is the total of the value that the customer
exchanges in return of the benefits obtained by consuming a particular product
(Kotler and Armstrong, 2004). The businesses add a profit margin to the total cost
when deciding the price of the product. Neelakantam (2015) says that tools such as
list price, discounts, allowance, payment period, and credit terms can be used when
developing the pricing strategy of the business.
Kotler and Armstrong (2004) have introduced the concept of ‘Target Costing’ which
sets up a plan to calculate the cost production from the product development stage
itself, focusing on a predetermined price. Thus it would be helpful for the businesses
to control their costs and sell a product to the predetermined price. However, it is
important to consider the customer’s perception of the product value when
determining the pricing strategy (Hanna & Dodge, 1995).
The place is the location where the product can be purchased, or it can be a series of
activities that have been taken place to make the product available to customers, or it
is the distribution channel (Neelakantam, 2015; Amy, 2007) This defines the level of
accessibility to the product. Distribution channels mean goods and services flow in
one direction from producer to consumer; thus, the payments generated by them will
flow on another way.
Neelakantam (2015) address the promotion as a method of advertising, personal
selling, sales promotion, and public relation. Further, he related this promotion
function to communication function emphasizing that the promotion is a two-way
communication method which assists customers to obtain the product education.
According to Haruna (2015), a bank can communicate a persuasive message about a
particular product. However, promotion brings benefits to the business by
encouraging healthy promotion. Promotional activities such as advertising, sales and
promotion, public relations, direct marketing, and personal selling are considered to
be the highly effective customer communication methods which bring continuous
benefits to the business (Selim, & Habibur, 2015).
- 101 -
Kottler (2003) introduced people, process, and physical evidence factors as an
extension to the traditional marketing mix, and further, it has been addressed as a
service marketing mix. People means the basic parties those who are involved in
service delivery. The level of training given to the employees and their interpersonal
behavior heavily impacts to determine the level of customer satisfaction. (Haruna,
2015)
The process is the method of rendering the service or understanding the product
design, features, and quality. (Neelakantam and Haruna, 2015) While the Physical
Evidence engaged with the environment that the business operates. The environment
can be either the place, village, country or region (Haruna, 2015).
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In different platform, it has been identified that there is a considerable impact of price
towards customer satisfaction (Leverin & LiLjander, 2006). Contradiction to that
Wahab, et. al: (1999) and Chen & Chang (2005) identified that there is only a small
correlation between price and customer satisfaction.
A survey conducted in Bahrain found that the place or location of the bank branch,
ATMs, and parking availability impacts heavily towards customer satisfaction among
young customers. (Almossawi, 2001) However, as per Mohammad, et al, (2012), the
management should consider more on the electronic aspect when they focus on
satisfying the customer.
The advertising has only a general acceptance by the customers within the banking
industry Mylonakis (2009), and the promotion has led to creating dissatisfaction
among customers. Instead, it has found that the management intervention towards
customer education has a high impact on the banking industry.
According to Ojusalo (2003), the level of interaction of staff to the services and
customer satisfaction has a considerable effect. Bangladesh based research done by
Siddiqi, (2011) identified that the quality service and interrelation directly lead to
developing customer loyalty and customer satisfaction.
Further, it has been found that the fast service or self-banking services provided by
the banks also highly impacting to develop a loyal and satisfied customer base to the
bank. Eisa & Alhemoud (2009). However, Jamal & Naser (2002)emphasize that
service quality is heavily impacting to determine customer satisfaction and potential
customer to the banking industry.
According to Le Blank and Nguyen (1988), the physical environment of the bank is
also impacting largely to determine the customer satisfaction, and it allows the
customers to experience a certain level of perceived service quality.
03. Methodology
3.1. The population of the Study and Sampling Method
The target population of this research is all the customers who use commercial banks
for their day to day financial needs. The research focused on the customers in the state
banking sector and selected a sample of 80 (n = 80) customers to obtain data about
their customer satisfaction level. Additionally, the research focused on maintaining
proper gender balance while selecting the sample to avoid the biases limitation of this
research. The research used a random sampling method to select a sample of
customers to measure their satisfaction level.
- 103 -
3.2. Research Instrument
The data was collected by using a questionnaire which focused on seven areas of the
research model, and the data was collected among 80 customers to analyze their
behavioral patterns. The Likert scale questionnaire is designed by covering the above
eight dependent variables and the independent variable to collect customer
information.
Valid Cumulative
Gender F %
Percent Percent
Male 48 56.5 60 60
Female 32 37.6 40 100
Total 80 94.1 100
85 100
According to the background studies, it is noted that the sample is male dominant
with 56.5 percent of male representation.
Table 02: Respondents Profile (Age)
Valid Cumulative
f %
Percent Percent
Under 20 years 2 2.4 2.5 2.5
21-30 years 22 25.9 27.5 30.0
31-40 years 28 32.9 35.0 65.0
41-50 years 15 17.6 18.8 83.8
51 years and above 13 15.3 16.3 100.0
Total 80 94.1 100.0
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As reveals by Table 02, 21- 30 years and 31- 40 years age group is highly dominant
in responding where there is a cumulative 58.8 percent of respondents from these two
age groups.
Table 03: Respondents’ Profile (Education Level)
Valid Cumulative
f %
Percent Percent
No formal education 4 4.7 5.0 5.0
Basic Education 24 28.2 30.0 35.0
Diploma 40 47.1 50.0 85.0
First Degree 11 12.9 13.8 98.8
Master’s Degree 1 1.2 1.3 100.0
Total 80 94.1 100.0
When analyzing the education level, the majority of respondents are diploma holders
(47.1 percent), and the respondent's group dominates with 75.3 percent of basic
education and diploma holders.
Table 04: Pearson Correlation Between the Customer Satisfaction and
Marketing Mix Elements
Correlations
Product Price Place Promotion Process People Physical
Evidence
Pearson .702** .659** .479** .667** .597** .706** .715**
Correlation
Sig. 0 0 0 0 0 0 0
(2-tailed)
N 80 80 80 80 80 80 80
**. Correlation is significant at the 0.01 level (2-tailed).
The research data was analyzed based on Pearson correlation coefficient in Table 04
with a significant level of 0.01 (p<.01) and the findings concluded that there is a
strong positive correlation between product (r = 0.702, p<.01), people (r = 0.706,
p<.01) and physical evidence (r = 0.715, p<.01) and customer satisfaction. This
means a business can improve its customer satisfaction by enhancing the status of the
product, people, and physical environment.
When considering the price (r = 0.659, p<.01), process (r = 0.597, p<.01) and
promotion (r = 0.667, p<.01), there is a positive and moderate correlation with
customer satisfaction. However, the place has the least correlation (r = 0.479, p<.01)
- 105 -
with customer satisfaction within the banking industry. The main impact for this
would be the availability of online banking systems to do the transactions which limit
the number of visits to the branch by a customer.
The hypothesis has been tested based on 99% of confidence level, and the alternative
hypothesis has been accepted in for all the variables. This means that product, price,
place, promotion, process, people, and physical evidence are positively correlated to
customer satisfaction.
Table 05: ANOVA for customer satisfaction between different age groups
Sum of Mean
Df F Sig.
Squares Square
Between
.872 4 .218 .576 .681
Groups
Within Groups 28.424 75 .379
Total 29.297 79
According to the ANOVA results in Table 05, mean of customer satisfaction among
different respondents’ age groups has no considerable difference (F4, 80 = 0.681,
p<0.05). This explains that though the sample is within different age groups, the
sample always holding the same level of satisfaction towards the banking services.
Table 03 exhibits the results of the ANOVA test to compare the means of satisfaction
among the different educational levels. However, the results show that there is no
significant difference in customer satisfaction between the different educational
groups (F4, 79 = 0.705, p<0.05). This means that the age and educational background
shows less influence to create a satisfied customer within the business.
Table 06: ANOVA for customer satisfaction between different education levels
Sum of Df Mean F Sig.
Squares Square
Between .823 4 .206 .542 .705
Groups
Within 28.474 75 .380
Groups
Total 29.297 79
- 106 -
Table 07: Levene’s t-test for the Comparison of Customer Satisfaction between
the gender groups
Interest 0.12
Year 02
Deposit 1,000,000
- 107 -
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International Journal of Bank Marketing, Vol, 27(4), pp. 294-314.
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IMPACT OF PERCEIVED VALUE ON CUSTOMER SATISFACTION AND
CONTINUANCE INTENTION OF CREDIT CARD USAGE
Polpitiya RMTK1, Perera DAM2, and Ediriweera IN2
1
Faculty of Postgraduate Studies, KEISIE International University, USA
2
Faculty of Business Studies and Finance, Wayamba University of Sri Lanka, Kuliyapitiya,
Sri Lanka
thilakshi@28@gmail.com
Abstract
Credits Cards, which became very popular in society at global market nowadays has
been identified as one of the most significant products in the sharing economy, yet
few studies have explored its value stream from a customer perception perspective.
Drawing upon existing research gap, this study propose a research model to examine
the customer perceived value on customer satisfaction and continuance intention of
credit card usage. An empirical study was conducted and 102 valid data was collected
from credit card users in Kurunegala District, Sri Lanka. The study used a quantitative
research approach, and primary data were collected through the administration of
questionnaires among credit card users. The data collected were analyzed with the
use of Statistical Package for Social Sciences (SPSS: Version 25), and Pearson’s
Correlation Coefficient was used to test independency and relationship of the
independent variables with the customer satisfaction. Findings revealed that
perceived value has significant impact on customer satisfaction. Also, perceived
value has positive effect to usage intensity. Credit card service providers should more
consider about their strategic marketing on pricing and promoting to customers, while
increasing the quality of product. Findings of this study open further research
opportunities within the Sri Lankan credit card industry to identify the most dominant
factors which influence the credit card customers.
01. Background
01.1 Definition of Credit Cards
According to Fineberg, G. (2003), a Credit card is a “Buy now Pay later” scheme,
and in Investopedia, the credit card has been defined as a thin rectangular slab made
of plastic and issued by a finance company which allows the cardholder to pay for
their consumables within a given period. Fineberg, G. (2003) further cited that credit
is always money (Franklin, B. 1748). Researches did on repayment behavioral study
state that interest rates of credit cards, credit card uses and misuses and the number
- 111 -
of credit cards have high sensitivity towards the tendency of individuals to hold the
credit cards. (Mathews & Slocum, 1969; Plummer, 1971)
Nowadays, the credit card service providers facilitate a comprehensive Line of Credit
(LOC) to their cardholders such as enabling cash advances, easy payment schemes,
special discounts, easy payment systems which create a motive among customers to
hold a credit card for such use.
Currently, the credit card service providers such as Visa, MasterCard, Discover, and
American Express link with banks, credit unions, and other financial institutions to
provide credit card service to the customers. It has been a practice among the credit
card providers to set up different levels of branding to develop the loyalty of credit
cardholders. Further, the special discounts, promotional notices, and special sales
cause to popularize the credit cards among the public.
- 113 -
While still cumbersome, a slab of clay with seals from both civilizations certainly
beat the tons of copper each would have had to melt down to produce the coins of
that era (MacDonald and Taylor, 2017).
Some of the earliest written examples of a credit system include the Code of
Hammurabi, named after the ruler of Babylon from 1792 to 1750 B.C., in what is now
Iraq. These laws established rules for loaning and paying back money, and how
interest could be charged (Jason, 2018).
Today the credit card industry is one of the barometers used to understand consumer
spending patterns in the World. Kimberly (2019) says that as a result of a relatively
healthy economy and competition for consumers, issuers launched new products with
attractive incentives, Credit card users enjoyed a bounty of rewards in present
economy.
Sri Lanka’s Credit Card Outstanding Balance data was reported at 101,353.000 LKR
mn in Oct 2018. This records an increase from the previous number of 99,763.160
LKR mn for Sep 2018. Sri Lanka’s Credit Card Outstanding Balance data is updated
monthly, averaging 32,054.000 LKR mn from Dec 2000 to Oct 2018, with 215
observations. The data reached an all-time high of 101,353.000 LKR mn in Oct 2018
and a record low of 3,738.000 LKR mn in Dec 2000. Sri Lanka’s Credit Card
Outstanding Balance data remains active status in CEIC and is reported by Central
Bank of Sri Lanka. The data is categorized under Global Database’s Sri Lanka – Table
LK.KA014: Credit Card Statistics.
Sri Lanka’s Number of Active Credit Cards data was reported at 1,621,930.000 Unit
in Oct 2018. This records an increase from the previous number of 1,609,696.000
Unit for Sep 2018. Sri Lanka’s Number of Active Credit Cards data is updated
monthly, averaging 857,668.000 Unit from Dec 2000 to Oct 2018, with 215
observations. The data reached an all-time high of 1,621,930.000 Unit in Oct 2018
and a record low of 205,324.000 Unit in Dec 2000. Sri Lanka’s Number of Active
Credit Cards data remains active status in CEIC and is reported by Central Bank of
Sri Lanka. The data is categorized under Global Database’s Sri Lanka – Table
LK.KA014: Credit Card Statistics.
- 114 -
01.4. Benefits of Credits cards
01.4.a Benefits to Merchants
A credit card transaction is considerably secured than other alternative forms of
payment. The reason for this is that, when the transaction is authorized, it creates an
obligation for the issuing bank to pay the merchant subject to the default terms on the
credit card agreement.
Further, the cards are even more secure than cash because the cards discourage theft
by the merchant's employees and reduce the amount of cash circulating within the
premises. It is not required for a merchant to evaluate the credit history of the
customer before extending credit. Measuring the credibility of the customers is now
performed by the banks which assume the credit risk.
- 115 -
Hence, this research is going to address the problem of how perceived value impact
on customer satisfaction in credit cards market, and how perceived value stimule
consumers credit card usage in Sri Lanka.
Perceived Value
Perceived Cost
Credit
Customer
Perceived Promotion card
Satisfaction
usage
Perceived Services
H2: Customer perceived value has positive effect on credit card usage intensity.
- 117 -
Anojan & Subaskaran, (2015) explained that the perceived promotion is one of the
four sub-variables of consumer’s preference. Krishna, et.al., (1991) explained that
customer perception of promotional activities or perceived promotion is highly
influenced by the brand, price, and the package size of the product. Thus, Chatterjee,
(2011) addressed the perceived promotion as the unexpected next purchase coupon,
which was advertised and which leads to creating a higher level of satisfaction among
the selected customers.
Further to that Jiang & Sun, (2014) expressed that the perceived promotion plays an
important role in influencing perceived price, which ultimately determines the
perceived value transferred to the customer. Thus, according to Anojan &
Subaskaran, (2015) perceived promotion has a nominal impact in predicting the
customers buying behavior.
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positive effect in between the perceived satisfaction and the effect of customer
satisfaction in the service sector.
3.0 Methodology
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Table 01: Gender Mix of the Sample
Gender Frequency Percent Valid Cumulative
Percent Percent
Male 41 40.2 40.2 40.2
Female 61 59.8 59.8 100.0
Total 102 100.0 100.0
Table 02 exhibited the education level of the total sample. As it reveals, out of the
total sample (n=102) 57.8 percent represents the customers who were completed their
secondary education (n=59), and 40.2 percent of customers has completed their first
degree (n=41) while the balance is comprised with the customers who hold a post-
graduate degree (n=02: 2 percent).
Table 03 exhibited the age mix of the sample. Out of the total sample (n=102) 44.1
percent represents the customers were in the age group of 21 to 35 years (n=45) and
48 percent of customers we in the middle age group of 36 – 50 years (n=49) while
the balance is comprised of the elderly customers who were more than 51 years.
(n=08: 7.8 percent).
- 120 -
Table 04 exhibited the occupation mix of the sample. Out of the total sample majority
(n=89), 87.3 percent represents the customers were engaged in service class and
(n=7), 6,9 percent of customers were engaged in businesses and (n=4) customers were
engaged in the agriculture sector. (n=04: 3.9 percent).
N 101 102
N 102 102
N 102 102
- 122 -
Table 07: Correlation Analysis of the Dependent and Independent Variables
Customer Sum of
Satisfaction Squares and 200.520 -52.931 87.676 71.304
Cross-
products
Covariance 1.985 -.524 .868 .706
- 123 -
5.0 Discussion and Conclusion
According to the data collected, it was noted that the customers who were educated
up to colleges and universities show a high sensitiveness in acquiring credit cards.
Further to that the customers those who are in the young and middle age group
categorize consume more credit cards than others.
When analyzing the occupations of the customer, it was noted that higher proportion
of fixed income earners who contribute to the service sector tend to use credit cards
than the variable income earners who contribute towards the business and agricultural
sector.
When analyzing the variables, the hypotheses were accepted in all three instances
stating that there is a significant relationship between the dependent and independent
variables. Customer Satisfaction and Perceived Cost is statistically significant (p =
0.000 < 0.01) in a linear relationship and the direction of the relationship is negative,
which means that when one variable increases the other variable decreases. Thus, the
magnitude of the association (r = - 0.584) is comparatively moderate (| r | > 0.5).
Customer Satisfaction and Perceived Promotion is statistically significant (p = 0.000
< 0.01) in a linear relationship and the direction of the relationship is positive, which
means that both the variables increase together thus the magnitude of the association
(r = 0.762) is comparatively very stong (| r | > 0.75).
Customer Satisfaction and Perceived Services is also statistically significant (p =
0.000 < 0.01) in a linear relationship and the direction of the relationship positive,
which means that both the variables increase together thus the magnitude of the
association (r = 0.664) is comparatively very stong (| r | > 0.65).
According to the findings of the research, the customer satisfaction of the credit card
customers of Peoples’ Bank might have many other variables other than perceived
cost, perceived promotion, and perceived services so that an opportunity for future
researches is open within the Sri Lankan Credit Card Market.
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FACTORS AFFECTING CUSTOMERS’ INTENTION TO USE
ELECTRONIC BANKING
Danawala Withana DWA1, Samarakoon SMRK2, and Perera DAM2
1
Faculty of Postgraduate Studies, KEISIE International University, USA
2
Faculty of Business Studies and Finance, Wayamba University of Sri Lanka, Kuliyapitiya,
Sri Lanka
adanawalawithana@gmail.com
Abstract
Currently, Sri Lanka is rapidly moving towards a cashless society with the increasing
e-banking transactions with retail payments, and the use of cash has been declining
with compared to the electronic banking for the goods and services. This study
focuses on Sri Lanka with special reference to Kurunegala district; the key findings
presented in this study have important implications for other areas of the country with
similar circumstances. The study was conducted based on a questionnaire collected
from 195 retail customers as the sample in Kurunegala district. ANOVA test was used
to find among customer intention on job positions, age groups, educational
qualification, income, and frequency of usage. According to the analyzed results
showed that there was no significant relationship between age and educational
qualification with consumer intent. Interestingly, monthly income, Job Position, and
frequency of use e-banking method had a significant relationship with customer
intention.
01. Introduction
This research article is mainly given extensively electronic banking service in Sri
Lanka. Here in Sri Lanka, the banking industry plays a vital role in managing financial
assets. Conventionally, all the banking activities were carried out manually, and
always customers had gone to keep in touch with branches. However, it wastes time
and money of both the customers and bankers. Currently, Sri Lanka is rapidly moving
towards a cashless society with the increasing e-banking transactions with retail
payments, and the use of cash has been declining with compared to the electronic
banking for the goods and services. The bankers are disclosed that large numbers of
consumers are using electronic banking for point-of-sale payments.
In general, there are several possible influences on the customers ‘intention to use
electronic banking service such as perceived usefulness, perceived ease of use,
perceived credibility, self-efficacy, perceived expensiveness, amount of information
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about electronic banking service, marketing campaigns. However, this study is on
considering only perceived usefulness, perceived ease of use, perceived credibility,
and self-efficacy as the factors which affect the intention of customers’ to use
electronic banking service.
When considering the Sri Lankan context, majority of the customers in the country
were aware of e-banking facilities, but most of them had not been tried to use those
facilities by themselves. They still pay their bills, withdraw money, check balances,
and deposit cheques at their bank counters much as the traditional way (Jayasiri,
Weerathunga, 2008; Natarajan, 2010). Although the banking professionals
interviewed by the researchers themselves are not pleased with this situation, they
appear to be content with the status quo (Suraweera, 2011). Since now, internet
banking expanding its position from desktop PC to a mobile phone but Sri Lankans
still resistance to adopting internet banking is becoming a huge problem. Due to the
majority of Sri Lankans is not technology savors, the banks tend to adopt a wait and
see attitude (Suraweera, 2011).
Therefore, more empirical studies are required in the area of electronic services'
adoption to help banks to improve their understanding of the factors that affect the
adoption of electronic banking services in Sri Lanka. While this study focuses on Sri
Lanka with special reference to Kurunegala district, the key findings presented in this
study have important implications for other areas of the country with similar
circumstances.
Liao and Wong (2017) conducted research, and the paper reports the determinants of
customer interactions with internet-enabled e-banking services. This paper exactly
investigates the significant contemplations related to Internet-empowered e-keeping
money frameworks and efficiently estimates the determinants of client connections
with e-saving money administrations. The outcomes proposed that apparent value,
usability, security, accommodation, and responsiveness to benefit asks for altogether
clarify the variety in client connections.
03. Methodology
According to the general concern and practice of previous authors worldwide, most
of them were test the independent variables shown in table 1 as the influencing factors
to the customers’ intention to use electronic banking services. So this study tried to
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investigate for the Sri Lankan context (with special reference to Kurunegala District)
that variables were adaptable and if so up to what extent.
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1. Ability to Protect
Privacy
Perceived 2. Security of the e-
Credibility banking system Questionnaire
3. Time-saving
4. Whether security has
significant influence.
1. System awareness
Self-Efficacy 2. Influence of other
people Questionnaire
3. Emotional arousal
4. Previous experience
1. Best E-banking
Customers’ method.
Intention to 2. The efficiency of e-
Use Electronic banking channels Questionnaire
Banking
3. The trustworthiness of
Methods
the e-banking system
4. User-friendliness
The collected data was analyzed using the computer software known as Statistical
Package for Service Solution (SPSS).
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04. Data Analysis
4.1. Analysis of Demographic Factors
The demographic data consisted of gender, age, marital status, educational level,
monthly income, position, the frequency of using electronic banking method.
Summary of analysis is depicted in Figures 1 – 6 and Tables 2-8.
Cumulative
Gender Frequency Percent Valid Percent
Percent
Valid Female 69 35.4 35.4 35.4
Male 126 64.6 64.6 100.0
Total 195 100.0 100.0
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Figure 02: Respondents’ Age
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Figure 03: Level of Education
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Figure 04: Monthly Income
Table 8: Employment
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Figure 05: Employment
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Figure 06: Frequency of Using e-banking
Self-Efficacy 0.814 04
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4.4. Inferential analysis
The null hypothesis stated as there is no significant relationship between female and
male and customers’ intention to use electronic banking services. Accordingly, the
consumer intention of male respondents in the sample in Kurunegala district was
greater than the female respondents in the same sample and the same area. There was
a statistically significant difference in customer intention between male and female
respondents. (Significant at 5%)
The null hypothesis was that there is no significant relationship between single,
married, and consumers’ intention to use electronic banking services. As per the result
of the t-test, the difference means were 4.2545 and 4.1647 for married and unmarried
sample representatives respectively on customer intention. However, represented sig
value was 0.341 (sig, 0.341> 0.05). Therefore the null hypothesis was substantiated.
Table 12: The result of t-Test (Relationship between Customer Intention and
Civil status)
The null hypothesis was customer intention to use e-banking of the respondents in the
Kurunegala district will not vary depending on the job position. The F value (1.157)
was significant. This implied that there is evidence to reject the null hypothesis.
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Therefore, there was enough evidence to conclude that the customer intention will
vary depending on the job positions.
Table 13: Result of ANOVA test (Relationship among Customer intention with
job position)
Sum of Mean
df F Sig.
Squares Square
Between 5.987 6 .998 2.457 .026
Groups
Within Groups 76.342 188 .406
Table 14: Result of ANOVA test (Relationship among Customer intention with
Age Group)
Sum of Mean
df F Sig.
Squares Square
Between
.520 3 .173 .405 .750
Groups
The educational qualification of customer intention did not deviate. (Sig= 0.083, p>
0.05). However, it is significant at the 10% level. This implied that there is no
significant difference in customer intention among levels of educational
qualifications.
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Table 15: Result of ANOVA Test (Relationship among customer intention with
educational qualification)
Sum of Mean
df F Sig.
Squares Square
Between
3.474 4 .869 2.093 .083
Groups
Within Groups 78.855 190 .415
Table 16: Result of ANOVA Test (Relationship among customer intention with
monthly income group)
Sum of Mean
df F Sig.
Squares Square
Between
5.542 3 1.847 4.595 .004
Groups
Within Groups 76.787 191 .402
By looking at Table 16, it can be stated that the Customer intends to use e-banking of
the respondents in Kurunegala district will vary depending on the monthly income.
(Sig. 0.04)
Table 17: Result of ANOVA Test (Relationship among customer intention with
the frequency of using e-banking method)
Sum of Mean
df F Sig.
Squares Square
Between
Groups 8.460 2 4.230 10.995 .000
Within Groups 73.869 192 .385
Total 82.329 194
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Result of ANOVA showed that the frequency of using e-banking method on
consumer intention deviated. (Sig= 0.000, p< 0.05). In another word, this implied that
there is a significant difference in customer intention with the frequency of using e-
banking method.
5. Conclusion
In the modern world context, all the customers try to do their transaction very
effective and time-saving manner because all the people around the world are
engaging in a very tight schedule. By considering these requirements, the parties who
are controlling and engaging the financial systems introduce so many systems and
methods to conduct transactions. Among these systems, electronic banking methods
are very popular and important. Though there are so many electronic banking
methods are already operate in the Sri Lankan context.
ANOVA test was used to find among customer intention on job positions, age groups,
educational qualification, income, and frequency of usage. According to the analyzed
results showed that there was no significant relationship between age and educational
qualification with consumer intent. Interestingly, monthly income, Job Position, and
frequency of use e-banking method had a significant relationship with customer
intention.
The institutions and authorities have to pay attention to find out what are the factors
highly influence the customers’ intention to use electronic banking methods other
than the factors discussed by this research as future research.
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