Customer Satisfaction Survey on Banks

A Study on

“Customer Satisfaction Survey on Banks” Submitted to the

School of Management Studies University of Hyderabad In Partial Fulfillment of the Requirement for the Award of the Degree of

Master of Business Administration

Under the Guidance of

Dr. Chetan Srivastava Lecturer, School of Management Studies University of Hyderabad

By

Ankit Singh 08MBMA12

For Getting A Copy Contact

[email protected]

MBA 2008-2010

School of Management Studies, University of Hyderabad, Gachibowli, Hyderabad, Andhra Pradeh.

CERTIFICATE This is to certify that the project work entitled “Customer Satisfaction Survey on Banks” has been carried out and submitted by Mr. Ankit Singh under my guidance in partial fulfillment of his Masters Of Business Administration

at

SCHOOL

OF

MANAGEMENT

STUDIES,

UNIVERSITY of HYDERABAD.

Date: 21/04/09

Dr. Chetan Srivastava Assistant Professor School Of Management Studies University Of Hyderabad

DECLARATION

This to declare that the project title “Customer Satisfaction Survey on Banks” is an authentic record of my original work carried out under the guidance of Dr. Chetan Srivastava, Assistant Professor in Marketing, School of Management Studies, University of Hyderabad. The project work has been carried out solely for the purpose of submission in partial fulfillment of Master of Business Administration at School of Management Studies, University of Hyderabad. I further declare that I have not submitted this document to any other School, University, or Institution in whatever manner.

Date -

Ankit Singh 08MBMA12

ACKNOWLEDGEMENTS

First of all I express my gratitude to my project guide Dr. Chetan Srivastava, Assistant Professor, School of Management Studies, University of Hyderabad. His able guidance at each step of the project helped me to broaden my outlook on the project and in successful completion of the project. I shall always remember his polite way of correction and constant encouragement by asking various questions. I convey my regards and special thanks to Dr. V. Venkata Ramana, Professor and Dean, School of Management Studies, University of Hyderabad for giving me this opportunity for doing this project. I specially thank all the faculty members of the School of Management Studies for having equipped me with the skills and the ability through their inputs, which assisted me in the completion of the project. I wish to thank all those people who have directly or indirectly been instrumental in successful completion of this project work. Finally, I would like to thank my Parents, Family, Friends, Colleagues and God Almighty for their unending inspiration and encouragement.

ACKNOWLEDGEMENTS

First of all I express my gratitude to my project guide Dr. Chetan Srivastava, Assistant Professor, School of Management Studies, University of Hyderabad. His able guidance at each step of the project helped me to broaden my outlook on the project and in successful completion of the project. I shall always remember his polite way of correction and constant encouragement by asking various questions. I convey my regards and special thanks to Dr. V. Venkata Ramana, Professor and Dean, School of Management Studies, University of Hyderabad for giving me this opportunity for doing this project. I specially thank all the faculty members of the School of Management Studies for having equipped me with the skills and the ability through their inputs, which assisted me in the completion of the project. I wish to thank all those people who have directly or indirectly been instrumental in successful completion of this project work. Finally, I would like to thank my Parents, Family, Friends, Colleagues and God Almighty for their unending inspiration and encouragement.

1. Executive Summary The report contains the brief description of the Banking Industry in India. It contains the findings and analysis of the survey conducted to gather primary data to judge the importance of various attributes that influence the satisfaction of customers in different manner and to the different extent. These attributes are classified as Initial Experience, Service Delivery Experience, Service Experience, Relationship Experience, and Grievance Handling. Further an attempt has been made to know the overall satisfaction of the customers. The attempt has also been made to categorize investors based on various demographic factors such as age, income, etc. and to present a comparative analysis of the various demographic factors. The size of the sample is limited to 120 only. More than 50 % of the respondents are using fixed deposits and saving bank account services of the banks. The highest number of respondents belongs to State Bank of India Group followed by ICICI Bank, Andhra Bank, HDFC Bank and Bank of Baroda Respectively. More than 40% of the respondents are the customers of the bank from more than 10 years. Nearness to bank is the most important factor affecting the choice of more than 30% followed by reputation of the bank which holds more than 25% of the share. The data relating to customer satisfaction is analyzed using Analysis of Variance. The analysis shows that customers give equal importance to all the attributes under each classification to rank their satisfaction. The attributes under each category are ranked according to their Weighted Average Mean. In terms of Initial Experience, Quality of response to customer queries is considered most important to judge the customer satisfaction and ICICI bank is at the top on this criteria. In terms of Service Delivery Experience, Timeliness of service delivery is ranked most important and SBI is at the top. In terms of Service Experience, Level of need fulfillment vis-à-vis expected is considered most important and SBI is again at the top. In terms of Relationship Experience, Frequency and quality of contact is considered most important and HDFC bank is leading the other banks. Finally in terms of Grievance Handling, Quality of complaint resolution is considered to be most important and SBI is again leading in on this criteria.

2. Table of Contents

Certificate Declaration Acknowledgements 1. Executive Summary

1

2. Table of Contents

2

3. History of Indian Banking Industry

8-9

4. Background and Need for Study

10

5. Statement of Problem

10-11

6. Objective of Study

12

7. Testable Hypothesis

13

8. Limitations of Study

13

9. Theoretical Framework

14

10. Literature Review

15-22

11. Research Methodology (a) Designing of Questionnaire

23-24

(b) Duration of Study

24

(c) Sample Selection

24

12. Data Collection and Analysis

24-35

13.Findings of the Study

64-65

14.Suggestions

66-67

15.Bibliography and References

68

16.Annexure I-II

69-72

3. HISTORY OF THE INDIAN BANKING INDUSTRY The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned belowFirst Phase – The General Bank of India was set up in the year 1786. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans. In 1865 Allahabad Bank was established and first time exclusively by Indians. Then Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. The Reserve Bank of India the central bank of India came in 1935. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in india as the Central Banking Authority. Second Phase – Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalised Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of india to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. Before the steps of nationalisation of Indian banks, only State Bank of India (SBI) was nationalised. It took place in July 1955 under the SBI Act of 1955. Nationalisation of Seven State Banks

of

India

(formed

subsidiary)

took

place

on

19th

July,

1960.

In 1969, major process of nationalisation was carried out. 14 major commercial banks in the country were nationalised. Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980. Seven more banks were nationalised with deposits over 200 crores. This step brought 80% of the banking segment in India under Government ownership. Third Phase –

This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalisation of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money. Steps taken by Government to regulate banking institutins in the country

1949- Enactment of Banking Regulation Act



1955- nationalization of State Bank of India



1959- nationalization of State Bank of India’s Subsidiaries



1961- Insurance cover extended to deposits



1969- Nationalisation of major 14 banks



1971- Creation of Credit Gurantee Corporation



1975- Creation of regional Rural Banks



1980- Nationalisation of 7 Banks with deposits over 200 crores

Public sector banks in IndiaThere are 26 public sector banks in India. These include the followingState Bank of India, State Bank of Bikaner and Jaipur, State Bank of Hyderabad ,State Bank of Indore, State Bank of Mysore, State Bank of Patiala, State Bank of Saurashtra, State Bank of Travancore, Andhra Bank, Allahabad Bank, Bank of Baroda, Bank of India , Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, Indian Overseas Bank, Indian Bank, Oriental Bank of Commerce, Punjab National Bank, Punjab and Sind Bank, Syndicate Bank, Union Bank of India, United Bank of India UCO Bank, and Vijaya Bank.

Private sector banks in IndiaThere are 9 private sector banks in India. These include the followingVysya Bank Ltd, Axis Bank Ltd, Indusind Bank Ltd, ICICI Banking Corporation Bank Ltd Global Trust Bank Ltd, HDFC Bank Ltd, Centurion Bank Ltd, Bank of Punjab Ltd IDBI Bank Ltd. Foreign banks in IndiaThere are 12 foreign banks in India. These include the followingAmerican Express Bank Ltd, ANZ Gridlays Bank Plc, Bank of America NT & SA, Bank of Tokyo Ltd, Banquc Nationale de Paris, Barclays Bank Plc, Citi Bank NC, Deutsche Bank AG, Hongkong and Shanghai Banking Corporation, Standard Chartered Bank, The Chase Manhattan Bank Ltd, Dresdner Bank AG.

4. BACKGROUND AND NEED FOR THE STUDYModern management science’s philosophy considers customer satisfaction as a baseline standard of performance and a possible standard of excellence for any business organization. Customer satisfaction measurement provides a sense of achievement and accomplishment for all employees involved in any stage of the customer service process. In this way, satisfaction measurement motivates people to perform and achieve higher levels of productivity. To reinforce customer orientation on a day-to-day basis, a growing number of companies choose customer satisfaction as their main performance indicator. It is almost impossible, however, to keep an entire company permanently motivated by a notion as abstract and intangible as customer satisfaction. Therefore, customer satisfaction must be translated into a number of measurable parameters which the customers consider the most for rating their satisfaction. Customer retention is an important element of banking strategy in today’s increasingly competitive environment where banks are not only competing with their peers but also with the non-banks and other financial institutions and the customer retention is possible only with the customer satisfaction. Bank management must identify and improve upon factors that provide satisfaction to customers. These include employee performance and professionalism, willingness to solve problems, friendliness, level of knowledge, communication skills, and selling skills, among others. Several studies have emphasized the significance of customer satisfaction in the banking industry. Most bank product developments are easy to duplicate and when banks provide nearly identical services, they can only distinguish themselves on the basis of price and quality. Therefore, customer satisfaction and retention is potentially an effective tool that banks can use to gain a strategic advantage and survive in today’s ever-increasing banking competitive environment. Also the customer retention is important because cost of acquiring new customers is more than the cost of maintaining existing customers. Also long-term customers if satisfied may generate positive word-of-mouth promotion for the company. Therefore by satisfying customers the banks can increase their profits and gain a strategic presence in the market.

5. STATEMENT OF PROBLEM- The “expectations” of customers influence their buying behavior. The customers relate this expectation to the quality of service provided by the banks. The level of expectation differs from person to person but everyone wants the banks to provide the products and services which can satisfy their needs up to their expected level or to a higher level so as to offer them a higher satisfaction. The level of satisfaction of customers is affected by some other attributes also other than the quality of service such as their experience with the bank employees etc. As there is a huge competition in the banking sector in India, the customer satisfaction is an important factor in the success of the banks. So with this background an attempt has been made to study the satisfaction of the customers of various banks taking into consideration some important attributes which customers consider for rating their satisfaction with a particular bank. 6. OBJECTIVES OF STUDYThe customers do not evaluate all possible attributes while rating their satisfaction, but the marketer’s search is for identification of “The key buying criteria” or “The key choice criteria” or “determinant attributes’ which are defined as certain features of a service that affects the customer satisfaction. The study has the following specific objectivesa. To judge the importance of attributes that influence customers’ satisfaction with a particular bank. b. To compare the satisfaction levels of private and public sector banks.

7. TESTABLE HYPOTHESIS- The following hypothesis is made in the studya) The customers give equal importance to all the attributes related to initial experience, service delivery experience, service experience, relationship experience and grievance handling in determining their satisfaction level. b) The private sector banks are able to bring greater satisfaction to the customers than public sector banks.

8. LIMITATIONS OF STUDY1. Sample size was limited to 120 only. The sample size may not represent whole market. 2. The study has not been conducted over an extended period of time considering both market ups and downs. The market state has a significant influence on the satisfaction level of customers. The study cannot capture such situations. 3. This study is limited to the customers of Hyderabad only. Therefore the inferences cannot be generalized. 4. A few respondents were not able to understand some of the terms of the questionnaire which may affect the study to a little extent.

9. THEORETICAL FRAMEWORKAccording to Philip Kotler, “satisfaction is a person’s feelings of pressure or disappointment resulting from product’s perceived performance (outcome) in relation to his or her expectations. Customer satisfaction is the level of a person’s felt state resulting from comparing a product’s perceived performance (outcome) in relation to the person’s expectations”. This satisfaction level is a function of difference between perceived performance and expectations. If the product’s performance, exceed expectation the customer highly satisfied or delighted. If the performance matches the expectations the customer is satisfied. If the products performance fall shorts of expectations the customer is dissatisfied. Many companies are aiming for high satisfaction because customers who are just satisfied still find it easy to switch when a better offer comes along. High satisfaction or delight creates an emotional affinity with brand. Variety of factors that affect customer satisfaction includes product quality, product availability and after sales support such as warranties and services. Customer satisfaction is seen as a proof of delivering a quality product or service. It is believed that customer satisfaction brings sales growth, and market share. A company can always increase customer satisfaction by lowering its price or increasing its services but this may result in lower profits. Thus the purpose of marketing is to generate customer value profitability. The two major factors of marketing are the recruitment of new customers (acquisition) and the retention and expansion of relationships with existing customers (base management). All this is possible only when the customers are satisfied with the companies. Companies use the following methods to measure customer satisfactiona. Complaints and suggestion system- The companies obtain complaints and suggestions through the customer service centers. b. Customer satisfaction surveys- The companies send questionnaires to random sample of their customers to find out how they feel about various aspects of the company’s performance and also solicit views on their competitor’s performance. c. Lost Customer Analysis- The companies contact customers who have stopped buying or who have switched to another supplier to learn why this happened.

10. LITERATURE REVIEWPrevious studies have identified the benefits that customer satisfaction delivers to an organization. The longer a customer stays with an organisation the more utility the customer generates (Reichheld and Sasser, 1990). In businesses where the underlying products have become commodity-like, quality of service depends heavily on the quality of its personnel. This is well documented in a study by Leeds (1992), who documented that approximately 40 percent of customers switched banks because of what they considered to be poor service. Leeds further argued that nearly three-quarters of the banking customers mentioned teller courtesy as a prime consideration in choosing a bank. The study also showed that increased use of service quality/sales and professional behaviours (such as formal greetings) improved customer satisfaction and reduced customer attrition. Reichheld (1996) suggests that unsatisfied customers may choose not to defect, because they do not expect to receive better service elsewhere. Additionally, satisfied customers may look for other providers because they believe they might receive better service elsewhere. However, keeping customers is also dependent on a number of other factors. Fornell (1992), in his study of Swedish consumers, notes that although customer satisfaction and quality appear to be important for all firms, satisfaction is more important for loyalty in industries such as banks, insurance, mail order, and automobiles. Ioanna (2002) further proposed that service quality is an imperative element impacting customers’ satisfaction level in the banking industry. To compete successfully in today’s competitive marketplace, banks must focus on understanding the needs, attitudes, satisfactions and behavioural patterns of the market (Kaynak and Kucukemiroglu, 1992). Consumers evaluate a number of criteria when choosing a bank. Kucukemiroglu's (1992) study of the Hong Kong banking market discovered that customers choose their banks because of convenience, long association, recommendations of friends and relatives, and accessibility to credit.

11. RESEARCH METHODOLOGY (a) Designing of Questionnaire- To understand the savings preference, bank preference, services taken, time period since becoming customer, and to identify the information sources influencing bank selection, a questionnaire (ANNEXURE I) was designed and the respondents were asked to mark their preferences on a ranking scale. The questionnaire also contains 19 factors that affect the customer satisfaction. These factors are divided into 5 major groups – Initial Experience, Service Delivery Experience, Service Experience, Relationship Experience and Grievance Handling. Also the customers were asked to rate their overall satisfaction on a 5 point scale ranging from Highly Satisfied (1) to not at all Satisfied (5). These factors are as follows-

(A) Initial Experience1. Level of product Knowledge with bank staff 2. Quality of response to customer queries on product/service 3. Understanding of customer’s needs and unique perspective 4. Availability and quality of brochures, sales material 5. Presentation, Communication and Mannerism of staff (B) Service Delivery Experience1. Timeliness of service delivery 2. Sharing of status while work-in-progress 3. Quality and sophistication of delivery 4. Behavior and mannerism of delivery staff 5. Level of congruence between time taken to deliver the services and stipulated time (C) Service Experience1. Level of service quality vis-à-vis expectation 2. Level of need fulfillment vis-à-vis expected (D) Relationship Experience1. Frequency and quality of contact 2. Knowledge of company products and customer opportunities 3. Conduct and Communication of relationship person

(E) Grievance Handling1. Timeliness of complaint resolution 2. Quality of complaint resolution 3. Level of of iterations till the complaint was resolved 4. Knowledge and empathy of the customer servicing staff

(F) Overall Satisfaction- The overall satisfaction of customers.

(b) Duration of Study- The survey is conducted for a period of three months starting from January 2010 to March 2010. (c) Sample Selection- The survey is conducted on 120 persons out of whom 37 respondents are the customers of SBI, 21 of ICICI, 13 of Andhra Bank, 12 of HDFC Bank, 17 of Bank of Baroda, and rest were of other banks. The sample for study includes 24 Government Employees, 44 Private Sector Employees, 35 Self-Professionals, and 21 housewives so as to get effective results. The survey was conducted in certain areas of Hyderabad. 12. Data Collection and Analysis- The report is based on primary data only. Primary data was collected through the above designed Questionnaire using telephone calls, e-mails and also personally interviewing the respondents. The data is analyzed using the correlation analysis, chisquare test and analysis of variance. The profile of the investors is given below-

INVESTOR PROFILE

INVESTOR PROFILE

NO. OF RESPONDENTS

Male Female

83 37

Below 30 30-40 40-50 50 and above

25 42 32 21

SEX

AGE

OCCUPATION Salaried Businessman/Professional Housewives ANNUAL INCOME Below 2,00,000 2,00,000-3,00,000 3,00,000-4,00,000 Above 4,00,000 PRODUCTS Fixed Deposits Saving Account Current Account Other BANKS State Bank Group ICICI Bank Andhra Bank HDFC Bank Bank of Baroda Other Banks RELATIONSHIP WITH BANK Less than 3 Year 3-5 Years 5-10 Years More Than 10 Years FACTORS AFFECTING CHOICE Ownership/ Reputation Nearness/Accessibility Commercials Friends/Family

68 35 21 31 46 23 20 27 42 35 16 37 21 13 12 18 19 21 25 23 51 31 42 24 23

A. INITIAL EXPERIENCE-

NO OF RESPONDENTS 2 3 4

ATTRIBUTES 1

RANKING (Based on Weighted Average)

5

Level of product Knowledge of bank staff

42

32

24

14

8

One

Quality of response to customer queries

50

34

22

12

2

Two

48

40

18

6

8

Three

26

32

20

24

18

Four

38

40

32

8

2

Five

Understanding of customer’s needs and unique perspective Availability and quality of brochures, sales material Presentation, Communication and Mannerism of staff

Quality of response to customer queries Understanding of customer’s needs and unique perspective Presentation, Communication and Mannerism of staff Level of product Knowledge of bank staff Availability and quality of brochures, sales material

Anova: Single Factor SUMMARY Groups Row 1 Row 2 Row 3 Row 4 Row 5

ANOVA Source of Variation Between Groups Within Groups Total

Count 5 5 5 5 5

SS

Sum Average Variance 120 24 186 120 24 352 120 24 362 120 24 30 120 24 314

df

MS

0 4976

4 20

4976

24

0 248.8

F

P-value F crit 0 1 2.86608

The F Value is much less than the critical or table value which shows that customers consider all the attributes as important while rating their satisfaction. Therefore the hypothesis that customers consider all the attributes important while rating their satisfaction stands accepted. The difference in the sample is due to random sampling error.

ATTRIBUTES Level of product Knowledge of bank staff Quality of response to customer queries Understanding of customer’s needs and unique perspective Availability and quality of brochures, sales material Presentation, Communication and Mannerism of staff

1

2

RANK OF BANK 3

ICICI

HDFC

SBI

BOB

ANDHRA

ICICI

HDFC

ANDHRA

SBI

BOB

ICICI

SBI

ANDHRA

HDFC

BOB

HDFC

ICICI

SBI

BOB

ANDHRA

ICICI

ANDHRA

ANDHRA

BOB

SBI

4

5

The above table ranks the banks in the sample on the basis of the data obtained from their customers. In terms of Level of product Knowledge of bank staff, quality of response to customer queries, understanding of customer’s needs and unique perspective, Presentation, Communication and Mannerism of staff the ICICI bank ranks higher. In terms of Availability and quality of brochures, sales material the HDFC bank is at the top. It clearly shows that the private sector banks are able to offer a good initial experience to the customers when compared with the public sector banks.

B. SERVICE DELIVERY EXPERIENCE-

ATTRIBUTES 1 Timeliness of service delivery Sharing of status while work-in-progress Quality and sophistication of delivery

NO OF RESPONDENTS 2 3 4

RANKING (Based on Weighted Average)

5

64

42

10

4

0

One

58

28

20

12

2

Two

30

24

42

18

6

Three

Behavior and mannerism of delivery staff

57

29

14

16

4

Four

Level of congruence between time taken to deliver the services and stipulated time

44

36

22

10

10

Five

Timeliness of service delivery Sharing of status while work-in-progress Behavior and mannerism of delivery staff Level of congruence between time taken to deliver the services and stipulated time Quality and sophistication of delivery

Anova: Single Factor SUMMARY Groups Row 1 Row 2 Row 3 Row 4 Row 5

ANOVA Source of Variation Between Groups Within Groups Total

Count 5 5 5 5 5

SS 0.64 8249.2 8249.84

Sum Average Variance 120 24 774 120 24 454 120 24 180 120 24 419.5 122 24.4 234.8

df 4 20

MS F P-value F crit 0.16 0.000388 1 2.866081 412.46

24

The F Value is much less than the critical or table value which shows that customers consider all the attributes as important while rating their satisfaction. Therefore the hypothesis that customers consider all the attributes important while rating their satisfaction stands accepted. The difference in the sample is due to random sampling error.

ATTRIBUTES Timeliness of service delivery Sharing of status while work-in-progress Quality and sophistication of delivery Behavior and mannerism of delivery staff Level of congruence between time taken to deliver the services and stipulated time

1

2

RANK OF BANK 3

SBI

HDFC

BOB

4

5

ICICI

ANDHRA

BOB

ANDHRA

SBI

ICICI

HDFC

SBI

BOB

ICICI

ANDHRA

HDFC

ICICI

HDFC

ANDHRA

SBI

BOB

ANDHRA

ICICI

HDFC

SBI

BOB

The above table ranks the banks in the sample on the basis of the data obtained from their customers. In terms of timeliness of the service delivery and quality and sophistication of delivery the State Bank of India is at the top. In terms of behavior and mannerism the ICICI bank is leading the others. Bank of Baroda is at the highest level in terms of sharing the status of service with the customers. Looking at Level of congruence between time taken to deliver the services and stipulated time the Andhra Bank is at the top.

C. SERVICE EXPERIENCE-

NO OF RESPONDENTS 2 3 4

ATTRIBUTES 1 Level of service quality vis-à-vis expectation Level of need fulfillment vis-à-vis expected

RANKING (Based on Weighted Average)

5

26

10

22

34

28

One

64

36

14

4

2

Two

Level of need fulfillment vis-à-vis expected Level of service quality vis-à-vis expectation

Anova: Single Factor SUMMARY Groups Row 1 Row 2

ANOVA Source of Variation Between Groups Within Groups Total

Count 5 5

SS

Sum Average Variance 120 24 80 120 24 682

df

MS

0 3048

1 8

3048

9

F

0 381

P-value F crit 0 1 5.317655

The F Value is much less than the critical or table value which shows that customers consider all the attributes as important while rating their satisfaction. Therefore the hypothesis that customers consider all the attributes important while rating their satisfaction stands accepted. The difference in the sample is due to random sampling error. ATTRIBUTES Level of service quality vis-à-vis expectation Level of need fulfillment vis-à-vis expected

1

2

RANK OF BANK 3

ICICI

SBI

SBI

ICICI

4

5

HDFC

ANDHRA

BOB

ANDHRA

BOB

HDFC

The above table shows that in terms of expected versus actual quality ICICI bank is able to satisfy the customers the most whereas the State Bank of India is able to fulfill the expected needs of the customers in a better manner.

D. RELATIONSHIP EXPERIENCE-

ATTRIBUTES 1 Frequency and quality of contact Knowledge of company products and customer opportunities Conduct and Communication of relationship person

NO OF RESPONDENTS 2 3 4

RANKING (Based on Weighted Average)

5

58

28

14

16

4

One

42

38

22

12

8

Two

24

28

18

28

22

Three

Frequency and quality of contact Knowledge of company products and customer opportunities Conduct and Communication of relationship person

Anova: Single Factor SUMMARY Groups Row 1 Row 2 Row 3

Count 5 5 5

ANOVA Source of Variation SS Between Groups 0.533333 Within Groups 2731.2 Total

2731.733

Sum Average Variance 120 24 434 122 24.4 230.8 120 24 18

df

MS F P-value F crit 2 0.266667 0.001172 0.998829 3.885294 12 227.6 14

The F Value is much less than the critical or table value which shows that customers consider all the attributes as important while rating their satisfaction. Therefore the hypothesis that customers consider all the attributes important while rating their satisfaction stands accepted. The difference in the sample is due to random sampling error.

ATTRIBUTES Frequency and quality of contact Knowledge of company products and customer opportunities Conduct and Communication of relationship person

1

2

RANK OF BANK 3

HDFC

ICICI

ANDHRA

BOB

SBI

ICICI

SBI

HDFC

BOB

ANDHRA

ICICI

BOB

SBI

ANDHRA

HDFC

4

5

The above table ranks the banks in the sample on the basis of the data obtained from their customers. In terms of frequency and quality of contact the HDFC bank is at the top. In terms of knowledge of the company products and conduct and communication of the relationship person the ICICI bank is leading the others. This again shows that private sector banks are able to give a good relationship experience to their customers as compared to the public sector banks.

E. GRIEVANCE HANDLING-

ATTRIBUTES 1 Timeliness of complaint resolution Quality of complaint resolution

NO OF RESPONDENTS 2 3 4

RANKING (Based on Weighted Average)

5

30

24

42

18

6

One

56

30

14

16

4

Two

Level of iterations till the complaint was resolved

44

36

22

11

9

Three

Knowledge and empathy of the customer servicing staff

24

28

18

28

22

Four

Quality of complaint resolution Level of iterations till the complaint was resolved Knowledge and empathy of the customer servicing staff Timeliness of complaint resolution

Anova: Single Factor SUMMARY Groups Row 1 Row 2 Row 3 Row 4

Count 5 5 5 5

Sum Average Variance 120 24 180 120 24 406 122 24.4 235.3 120 24 18

ANOVA Source of Variation Between Groups Within Groups

0.6 3357.2

3 16

Total

3357.8

19

SS

df

MS

F P-value F crit 0.2 0.000953 0.999958 3.238872 209.825

The F Value is much less than the critical or table value which shows that customers consider all the attributes as important while rating their satisfaction. Therefore the hypothesis that customers consider all the attributes important while rating their satisfaction stands accepted. The difference in the sample is due to random sampling error.

ATTRIBUTES Timeliness of complaint resolution Quality of complaint resolution Level of iterations till the complaint was resolved Knowledge and empathy of the customer servicing staff

1

2

RANK OF BANK 3

ICICI

SBI

SBI

4

5

HDFC

ANDHRA

BOB

BOB

ANDHRA

ICICI

HDFC

ICICI

HDFC

SBI

BOB

ANDHRA

ICICI

HDFC

BOB

SBI

ANDHRA

The above table ranks the banks in the sample on the basis of the data obtained from their customers. In terms of timeliness of the complaint resolution, level of iterations till the complaint is resolved and knowledge and empathy of the customer servicing staff the ICICI bank ranks the highest. In terms of quality of complaint resolution the State bank of India rank the highest. F. OVERALL SATISFACTION- In terms of overall satisfaction the ICICI bank is rated

the highest by the customers followed by State bank of India, HDFC bank, Bank of Baroda and at the last Andhra Bank.

Annexure - I Questionnaire for Study

1. NAME ______________________________

2. E-MAIL ___________________________________________

3. Please tick markI. AGE: Below 30

[ ]

II. GENDER:

Male [ ]

III. INCOME:

< 200,000 [ ]

IV. OCCUPATION:

30 – 40

[ ]

Female

[ ]

40 – 50

[ ]

50 and above

[ ]

200,000-300,000 [ ] 300.000-400,000 [ ] 400,000 > [ ]

Salaried [ ]

Businessman [ ] Professional [ ] Housewife [ ]

V. QUALIFICATION:

Below graduate [ ]

Graduate [ ]

VI. MARITAL STATUS:

Married

Unmarried

[ ]

Above Graduate [ ] [ ]

4. To which bank you are the Customer_____________________________________

5. Form how much time you are with the bank______________

6. Which products/services you are taking from the bank[ ] Fixed Deposits

[ ] Current Account

[ ] Other

6. Which environmental forces influenced you the most to select your bank? [ ] Ownership/Reputation

[ ] Nearness [ ] Commercials

[ ] Friends/Family

GIVE MARKS OUT OF 5 TO EACH OF THE FOLLOWING ATTRIBUTES BASED ON YOUR SATISFACTION FROM SERVICES OF THE BANKS-

Give: 1 for Highly Satisfied Give: 2 for Satisfied Give: 3 for Moderately Satisfied / Unmarked Give: 4 for Dissatisfied Give: 5 for Not at all Satisfied Please Refer Example-

Grade Service Quality



INITIAL EXPERIENCE 1. Level of product Knowledge of bank staff



2. Quality of response to customer queries on product/service



3. Understanding of customer’s needs and unique perspective



4. Availability and quality of brochures, sales material



5. Presentation, Communication and Mannerism of staff



SERVICE DELIVERY EXPERIENCE 1. Timeliness of service delivery



2. Sharing of status while work-in-progress



3. Quality and sophistication of delivery



4. Behavior and mannerism of delivery staff



5. Level of congruence between time taken to deliver the services and stipulated time



4

SERVICE EXPERIENCE 1. Level of service quality vis-à-vis expectation.



2. Level of need fulfillment vis-à-vis expected



RELATIONSHIP EXPERIENCE 1. Frequency and quality of contact



2. Knowledge of company products and customer opportunities



3. Conduct and Communication of relationship person



GRIEVANCE HANDLING 1. Timeliness of complaint resolution



2. Quality of complaint resolution



3. Level of iterations till the complaint was resolved



4. Knowledge and empathy of the customer servicing staff



OVERALL SATISFACTION-



Thank You