Impact of Mobile Banking on Customer Retention Rate
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Running head: BUSINESS RESEARCH Assignment 2: Impact of mobile banking on customer retention rate and Business Performance Name of the Student Name of the University Author Notes
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1BUSINESS RESEARCH 1. Introduction(Will be same from assignment 1) 2. Project Objective(Will be same from assignment 1) 3. Project Scope(Will be same from assignment 1) 4. Literature Review(Will be same from assignment 1) 5. Research questions/hypothesis Research hypothesis: 1H0(Null hypothesis): Mobile banking service has no impact on customer satisfaction and retention 1H1(Alternatehypothesis):Mobilebankingservicehassignificantimpactoncustomer satisfaction and retention 2H0(Null hypothesis): Mobile banking service has no impact on improving the business performance of the banking sector 2H1(Alternate hypothesis): Mobile banking service has significant impact on improving the business performance of the banking sector Primary question: 1.What is the role of mobile banking service in increasing the customer satisfaction and in the growth of the banking sector? Secondary questions:
2BUSINESS RESEARCH 1.What are the impacts of mobile banking service on the customer satisfaction from the banking services? 2.How does the mobile banking service improve the level of business performance of the banking sector and contributes in its growth? 3.What are the risks associated with high usage mobile banking services that can lead to customer dissatisfaction? 6. Research design and methodology As mentioned earlier in the literature review, mobile banking service goes back a long way, even before the invention of smartphone. With the advancement of technology, the nature of mobile banking have changed and become more convenient and user-friendly. Over the years, mobile banking services have changed the banking service scenario all over the world. The purpose of the given research is to evaluate different features of mobile banking services and its impact on the customer satisfaction as well as retention and on the growth of the banking sector. Research methodology describes the strategies or actions to be taken by the researcher to conduct the study in the most rational, comprehensive and appropriate manner to answer the research questions unambiguously. It is composed of the process of data collection and analysis. On the basis of the nature of the sources of the data and type of analysis process, the most appropriate research methodology is chosen (Mackey & Gass, 2015). In the following research, both the quantitative and qualitative facets of the research topic need to be addressed. Qualitative research process
3BUSINESS RESEARCH Qualitative research processcontains subjective, informal and semi systematic research that puts importance on the words and human aspects rather than on the numbers collected through the process of data collection. This is inductive in nature, in which a new phenomenon is explored or new inferences are generated from the data. The ideologies of qualitative research process are to collect the views of the participants to generate new theories, which are not generalized in nature (Silverman, 2016). The characteristics of this research process are to understand the procedures of social life and humanitarian aspects, along with an emphasis on the background, and to put flexibility in the way of observation, research and analysis process. The main stages of the qualitative research methods are as follows: 1.Determination of research questions 2.Design of the study 3.Collection of data 4.Data analysis and interpretation 5.Validation of the collected data 6.Report and presentation The stages are described below. Determination of research questionsis the first and foremost section for any type of research. Research questions help in determining the direction of the total study, the vision and thought process of the researcher. These questions are framed in way so that they can represent the topic of the study in the most specified and comprehensive manner (Merriam & Tisdell, 2015). In the following research study, the impact of mobile banking service on the business performance and growth of the banking sector and on the level of customer satisfaction and
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4BUSINESS RESEARCH retention will be analyzed and the research questions are designed with a focus on this. The level of customer satisfaction and retention, and the business performance and growth have qualitative aspects as people’s perspectives differ resulting in different outcomes. Therefore, to address the qualitative and relative aspects of the study and to elucidate the social context of the study, the researcher will collect qualitative data. Design of the study is another very crucial part of any research. It determines the structure of the research study. The purpose of the research study design is to get significant inputs from the research subjects and not just do internal discussions for answering the research questions (Saxena et al., 2013). The research design defines ‘what’ should be the expected outcome and answer the questions on ‘who’, ‘when’, ‘how’ and ‘where’ while conducting the study. Various types of research design are available and chosen as per the suitability and nature of the study. Case study, experimental, descriptive, and survey are some of the several research designs that are most commonly followed. For the given research, the researcher will apply the case study research design. Case study design is helpful in analyzing the research topic in a real world scenario and getting the most relevant and practical outcomes (Panneerselvam, 2014). Commonwealth Bank in Australia is chosen as the case study company. Qualitative data on the advantagesanddisadvantagesofthemobilebankingservices,itspopularityamongthe customers and effectiveness in contributing towards the growth of the banking services of the Commonwealth Bank will be collected. Few managers from the bank will be chosen by applying relevant sampling technique. The data will be collected in one of the branches of the bank by conducting interviews, over a period of one week, during the banking hours. Data collection processinvolves both the primary and secondary data as per the requirement of research study. Primary data refers to the data that is collected directly from the
5BUSINESS RESEARCH field of research, and secondary data refers to the one, which is collected from various authentic published sources, such as, official website of government and various companies, books, journals, newspaper articles, annual reports etc. (Lewis, 2015). The data collection process starts with sampling. A sample is a subset of a large population having the same characteristics. Sampling is done as studying the entire population is not possible, especially if the population is large. Sampling techniques are of two types, namely, probability sampling and non-probability sampling. In qualitative research process, non-probability sampling technique is most commonly used. This type of sampling is based on the subjective judgment of the researcher and not on the random selection (Billig & Waterman, 2013). The techniques of most common non-probability samplingareconveniencesampling,purposivesampling,quotasampling,andsnowball sampling. For this study, the researcher will apply purposive sampling technique to choose 3 managers in one of the branches of the Commonwealth Bank. There are four types of primary data collection process under qualitative study, namely, interview, document analysis, focus group and unstructured analysis (Maxwell, 2012). For the given research, the researcher will conduct one on one interview process on the 3 managers of the bank. This is beneficial to get the perspectives and insights about the different aspects and impacts of the mobile banking services, operated by the Commonwealth Bank. The researcher will follow structured interview method to make the analysis process easier. Secondary data will be collected from annual reports of the company. Data will be collected on the growth and changes in the customer base availing the mobile banking service and revenue earned from it in the last 5 years. This will help in addressing the research questions.
6BUSINESS RESEARCH Data analysis process for both the primary and secondary data will follow the qualitative approach. In this analysis process, the researcher will highlight the useful and significant information obtained from the data, suggest the conclusion and make the decisions by analyzing the collected data. In this case, audio transcripts of the interviews will be translated. The researcher will need to read and re-read the texts and listen to audio recordings multiple times, note down the important findings and judge the quality of data in this analysis process. This is called substantative statement (Silverman, 2016). Following that, several appropriate themes will be designed to categorize the findings. The themes will be designed in a way so that it is aligned with the research questions and objectives. This style of data analysis is known as thematic analysis. The findings are then put under relevant themes to see if those are satisfying the objectives or not. This will lead to the design of a structural flow, which shows the progress of the study (Vaismoradi, Turunen & Bondas, 2013). Lastly, the researcher analyzes the findings and interprets those to see whether those are addressing the research questions. The trend in the secondary data will also be analyzed and presented under various themes. Thevariablesthat are chosen for this research are efficiency of mobile banking service, customer satisfaction, and business performance of the bank. Efficiency of the mobile banking is the independent variable and customer satisfaction and business performance or growth of the bank is dependent variable. Validityof the data represents the concept of whether the indicator is actually measuring the research topic and reliability represents the internal consistency of the data. Triangulation, Member checking, self-reflection, authenticity and external audits are tests for validity and reliability of the data (Bryman & Bell, 2015). In this given research, the validity and reliability will be measured by triangulation of quantitative analysis process, through surveys.
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7BUSINESS RESEARCH Reportingof the interpretation will be done at the end of data analysis procedure. This will be containing the comprehensive illustration of data collection, analysis, and interpretation of the findings.
8BUSINESS RESEARCH Quantitative research process Quantitative research processis the one that involves objective, formal and systematic procedure of research, which mainly deals with numerical data. In this process, numerical data is gathered and analyzed using statistical tools, to get the answers of the research questions. Quantitative research process is mostly deductive in nature. In this process, research hypothesis is formulated and that is tested against established theories by scholars (Neuman, 2013). Scientific methods and statistical tools are applied on the numerical data to obtain a rational and definite answer for the research questions, with support from previously established theories. The fundamental steps of quantitative research process are: 1.Development of research hypothesis 2.Designing the research study 3.Sampling and data collection 4.Analysis and interpretation of the data 5.Conclusion 6.Reporting Research hypothesisrefers to the predictive statement about the relationship between two or more variables of the research study, which are examined in the study. This is a definite statement that is based on the observations and knowledge, and forecasts the outcome through statistical tests (Walter & Andersen, 2013). In the given research, two hypotheses are developed, that expects to explore the relationship of impact of mobile banking service with customer satisfactionandretentionandgrowthinbankingbusinessthroughimprovedbusiness performance. The first hypothesis focuses on the relationship between mobile banking service
9BUSINESS RESEARCH and customer satisfaction and retention, while the second hypothesis addresses the relationship between mobile banking service and growth of the banking sector. The null hypotheses predict a negative relationship between the two factors and by the application of statistics, relationships will be tested to reach to an unambiguous and logical conclusion. Quantitative design of researchconsists of purpose statement, significance of the research, research aim and objectives, theory, questions and research hypothesis. This process of research design also consists of many forms, such as, case study, descriptive, correlational, quasi-experimental and experimental (Neuman, 2013). In the given research, the researcher will be following the correlational case study research design. A correlational study explores and analyzes the relation between dependent and independent variables by applying statistical tools. This study does not always explore the cause and effect of the research phenomenon. This mostly takes observational approach in terms of data collection. Similar, to the qualitative approach, Commonwealth Bank of Australia is the case study company in quantitative approach also. The quantitative data to be collected from the bank will be tested using statistical tools under correlational research design. The researcher will be applyingprobability sampling techniqueto draw the sample from the large population. In probability sampling, each the sample has equal chance of being selected and they are chosen randomly. Various types of probability sampling are simple random sampling, cluster sampling, stratified sampling and systematic sampling (Acharya et al., 2013). For the following study, the researcher will apply simple random sampling technique to draw a sample. A survey will be conducted on the sample to collect primary data. Since, the study aims to explore the level of customer satisfaction regarding the application of mobile banking
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10BUSINESS RESEARCH services,theresearcherwillbeconductingthesurveyonrandomcustomersofthe Commonwealth Bank of Australia. 60 random customers will be chosen by the researcher for the survey. Research instrumentsrefer to measurement devices that the researcher uses for the purpose of the survey. The instruments are usually two types, researcher completed and subject completed. Questionnaires, checklist, achievement or aptitude tests, attitude scales, projective device and sociometric devices are completed by the subjects. On the other hand, rating scales, tally sheets, flowcharts, observation forms, interview schedules, performance checklist and time and motion logs are researcher completed instruments (Zohrabi, 2013). For the primary data collection, research instruments are chosen based on the suitability and requirement of the research as well as the research design. For the given research, the researcher will use survey questionnaire and interview schedule and guide. While preparing the instruments, the researcher will solely focus on the research topic. The survey questionnaire will contain two parts, demographic section and the subject oriented section. Under the demographic section, the participants will be required to answer questions on age, gender, occupation, educational qualification, and if they are using the mobile banking service, and if yes and for how many years. The second section will focus on gathering specific information about the mobile banking servicelaunchedbytheCommonwealthbank,itseffectivenessandefficiencyfromthe consumers’ point of view. The questionnaire will contain close ended questions for convenience in answering and calculating the answers. The responses will be recorded in a five point rating scale, such as, the Likert scale, where 5 options are given for the answers, from strongly disagree to strongly agree. These responses will be analyzed using quantitative methods.Regarding the interview responses and secondary data on the trend in the number of users of mobile banking by
11BUSINESS RESEARCH the Commonwealth Bank of Australia and business growth over the last 5 years will be analyzed qualitatively. The process ofquantitative data analysisinvolves the implementation of statistical tools to obtain scientific and logical findings. The responses of the survey will be converted into numeric data, with 1 representing strongly disagree and 5 representing strongly agree on the Likert scale rating. Statistical software, such as, SPSS will be used for data analysis. SPSS stands for Statistical Package for the Social Sciences (Field, 2013). This software will help in doing the calculation on the data and preparing the report. According to the requirement of the research study, the researcher will apply various statistical functions, such as, descriptive statistics, reliability test, correlation, regression and cross tabulation. The frequency of the responses and its trends will be represented via tables and bar graphs. Correlation will be done to find out the relation between the variables of the study. It is a technique of statistical evaluation that aims to study the strength of the relationship between two numerical and continuous variables (Lane, 2014). While finding out any potential connection between two variables, correlation analysis is performed. Correlation is either positive or negative. Value of the correlation coefficient ranges from +1 to -1. Whether there exists any type of possible connections between the variables measuring the impact of mobile banking service, customer satisfaction and growth of the banking business. Regression analysis is another test for estimating the relationship between the variables in a research study. This analysis creates a model to predict the relationship between the dependent and independent variables in a research (Noether, 2012). It measures the change in the value of the dependent variable when the value of any one of the independent variables changes, while the other independent variables remain unchanged. In the given research, the variable measuring
12BUSINESS RESEARCH the impact of mobile banking service is the independent variable and growth of banking service and customer satisfaction is dependent variable. Two separate regression analyses will be performed to address these two factors individually. Cross tabulation compares the results for one or more than one variables with that of the other(s) (Triola, 2013). It is useful for studying the relationships within the data which may not be apparent. It will help in representing the number of respondents using mobile banking service by the bank and their perceptions. Reliabilitytest will be used for checking the reliability of the data. The score is measured in terms of the Cronbach’s alpha value. This measure is most commonly used to test the internal consistency of the dataset. 0.7 or more is considered as the good and acceptable score in terms of the internal consistency, that is, reliability of the data (Heale & Twycross, 2015).Validityrefers to how well the test is measuring the features of the study. It will be evaluated in terms of the outcomes and their relevance in reaching the conclusion. At the end of the data analysis,reportingwill be done. The report will contain the analytical findings of the qualitative and quantitative study, its interpretations and representation of the outcomes. 7.Research limitation Budget and time are the major limitations for the research study. Since, the researcher will collect both the primary and secondary data, it would require more time as well as the budget, but both are limited in this case. Hence, a small sample size will be considered for the
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13BUSINESS RESEARCH survey, which may result in sample fluctuation and biasness in the data. Secondly, many other factors can influence the business growth of the banking sector apart from the mobile banking service, which will not be considered in this study. Considering those factors might lead to different outcome. 8. Time schedule Week Task123456789101112 Making a strategy Making a framework Literature review Review ofEthics and Legal Consideration Primary data collection Sampling for interview and survey Making interview questions Conducting interview Preparing survey questionnaire Conducting survey Secondary data collection Data analysis Qualitative data analysis Quantitative data analysis Presenting the findings and discussion Providing the conclusion Thesis submission (Source: Author) 9. Conclusion The researcher will follow mixed methodology to conduct the research study. Qualitative study will help in obtaining the individual perspective about the research variables while
14BUSINESS RESEARCH quantitative analysis will help in validating the findings in a more logical as well as scientific way. 3 managers and some customers of the Commonwealth Bank of Australia will be chosen as a sample to conduct the study. Using thematic analysis, the findings will be presented. The interview responses and secondary data will be analyzed qualitatively and survey responses will be analyzed using quantitative methods. Using both methods, the researcher will evaluate the relationship between the variables to reach the conclusion.
15BUSINESS RESEARCH References Acharya, A. S., Prakash, A., Saxena, P., & Nigam, A. (2013). Sampling: Why and how of it.Indian Journal of Medical Specialties,4(2), 330-333. Billig, S. H., & Waterman, A. S. (Eds.). (2014).Studying service-learning: Innovations in education research methodology. Routledge. Bryman, A., & Bell, E. (2015).Business research methods. Oxford University Press, USA. Field, A. (2013).Discovering statistics using IBM SPSS statistics. sage. Heale, R., & Twycross, A. (2015). Validity and reliability in quantitative studies.Evidence- based nursing, ebnurs-2015. Lane, D. M. (2014). Introduction to statistics. Lewis,S.(2015).Qualitativeinquiryandresearchdesign:Choosingamongfive approaches.Health promotion practice,16(4), 473-475. LoBiondo-Wood, G., & Haber, J. (2014). Reliability and validity.Nursing research-ebook: Methods and critical appraisal for evidencebased practice. Missouri: Elsevier Mosby, 289-309. Mackey, A., & Gass, S. M. (2015).Second language research: Methodology and design. Routledge. Maxwell, J. A. (2012).Qualitative research design: An interactive approach(Vol. 41). Sage publications.
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16BUSINESS RESEARCH Merriam,S.B.&Tisdell,E.J.(2015).Qualitativeresearch:Aguidetodesignand implementation. John Wiley & Sons. Neuman, W. L. (2013).Social research methods: Qualitative and quantitative approaches. Pearson education. Noether, G. E. (2012).Introduction to statistics: the nonparametric way. Springer Science & Business Media. Panneerselvam, R. (2014).Research methodology. PHI Learning Pvt. Ltd.. Saxena, P., Prakash, A., Acharya, A. S., & Nigam, A. (2013). Selecting a study design for research.Indian Journal of Medical Specialities,4(2), 335. Silverman, D. (Ed.). (2016).Qualitative research. Sage. Triola, M. F. (2013).Elementary statistics using Excel. Pearson. Vaismoradi, M., Turunen, H., & Bondas, T. (2013). Content analysis and thematic analysis: Implicationsforconductingaqualitativedescriptivestudy.Nursing&health sciences,15(3), 398-405. Walter, M., & Andersen, C. (2013).Indigenous statistics: A quantitative research methodology. Left Coast Press. Zohrabi, M. (2013). Mixed method research: Instruments, validity, reliability and reporting findings.Theory and Practice in Language Studies,3(2), 254.