Perceptual mapping of electronic banking channels in India: A Multidimensional Scaling approach

2014 IJRSM – Volume 3 Issue 1


Bamoriya, Prerna*
Acropolis Faculty of Management & Research, India (

Bamoriya, Hemant
Acropolis Faculty of Management & Research, India (

Singh, Preeti
Devi Ahilya University, India (


In recent times, intensifying competition and financial liberalization has led Indian banking sector to look towards information and communication technology (ICT). So banks are rapidly adopting electronic banking channels to efficiently reach their target market and reduce operational cost. Despite the various advantages of electronic banking, it is still in infancy stage in India. There is a need to systematically explore customers’ perceptions towards various electronic banking channels and their underlying motives to choose & prefer one channel over other. This study uses Multidimensional Scaling (MDS) approach to develop a perceptual map of select electronic channels and to derive relevant dimensions. Findings suggest that Automated Teller Machine (ATM) is distinctly placed and was perceived to be most secure & useful electronic banking channel. Internet banking and mobile banking were perceived to be low on security dimension. Phone banking although perceived secure, but it scored high on complexity and low on usefulness. Further, paper presents important implications for bank to improve adoption of electronic banking services.

Keywords: e-banking; ATM; internet banking; mobile banking; phone banking; MDS



*Corresponding Author