UNDERSTANDING E-BANKING USAGE: THE ROLE OF SOCIO-ECONOMIC VARIABLES IN SHAPING CONSUMER BEHAVIOR
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Abstract
The rapid digital transformation in the banking sector has significantly influenced consumer behavior, particularly in the context of e-banking adoption and engagement. This study explores the underlying dimensions of e-banking usage, customer engagement, and customer loyalty, and examines how these are shaped by socio-economic variables across the regions of Punjab, Haryana, and Chandigarh. Using a structured questionnaire, primary data were collected from 400 respondents through stratified random sampling. Exploratory Factor Analysis (EFA) was employed to identify latent constructs underlying consumer behavior in the e-banking domain. The Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy (0.849) and Bartlett’s Test of Sphericity (χ² = 3586.537, p < 0.001) confirmed the appropriateness of the dataset for factor analysis. Six distinct factors emerged, accounting for 73.84% of the total variance, representing dimensions such as perceived ease of use, trust, digital engagement, and loyalty. The findings reveal that socio-economic characteristics like age, education, and income significantly influence consumers’ engagement with e-banking services. This study provides valuable insights for banks and policymakers aiming to enhance digital banking adoption and customer retention strategies in emerging economies.