Customer Satisfaction Survey on Banks

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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

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For Getting A Copy Contact

ankitvns2007@gmail.com

MBA 2008-2010

School of Management Studies,

University of Hyderabad,

Gachibowli, Hyderabad,

Andhra Pradeh.

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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

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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

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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.

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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.

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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.

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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

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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 below-

First 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.

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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 India-

There are 26 public sector banks in India. These include the following-

State 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.

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Private sector banks in India-

There are 9 private sector banks in India. These include the following-

Vysya 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 India-

There are 12 foreign banks in India. These include the following-

American 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.

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4. BACKGROUND AND NEED FOR THE STUDY-

Modern 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.

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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 STUDY-

The 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 objectives-

a. 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 study-

a) 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

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8. LIMITATIONS OF

STUDY-1. 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

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9. THEORETICAL FRAMEWORK-

According 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 satisfaction-

a. 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

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10. LITERATURE REVIEW-

Previous 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.

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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 Experience-

1. 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 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 (C) Service Experience-

1. Level of service quality vis-à-vis expectation 2. Level of need fulfillment vis-à-vis expected (D) Relationship Experience-

1. Frequency and quality of contact

2. Knowledge of company products and customer opportunities 3. Conduct and Communication of relationship person

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(E) Grievance Handling-

1. 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, chi-square test and analysis of variance. The profile of the investors is given below-

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INVESTOR PROFILE

INVESTOR PROFILE NO. OF RESPONDENTS SEX Male 83 Female 37 AGE Below 30 25 30-40 42 40-50 32 50 and above 21 OCCUPATION Salaried 68 Businessman/Professional 35 Housewives 21 ANNUAL INCOME Below 2,00,000 31 2,00,000-3,00,000 46 3,00,000-4,00,000 23 Above 4,00,000 20 PRODUCTS Fixed Deposits 27 Saving Account 42 Current Account 35 Other 16 BANKS

State Bank Group 37

ICICI Bank 21

Andhra Bank 13

HDFC Bank 12

Bank of Baroda 18

Other Banks 19

RELATIONSHIP WITH BANK

Less than 3 Year 21

3-5 Years 25

5-10 Years 23

More Than 10 Years 51

FACTORS AFFECTING CHOICE

Ownership/ Reputation 31

Nearness/Accessibility 42

Commercials 24

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A. INITIAL EXPERIENCE-

ATTRIBUTES

NO OF

RESPONDENTS RANKING

(Based on Weighted Average) 1 2 3 4 5

Level of product

Knowledge of bank staff 42 32 24 14 8 One

Quality of response to customer queries Quality of response to

customer queries 50 34 22 12 2 Two

Understanding of customer’s needs and unique perspective Understanding of

customer’s needs and unique perspective

48 40 18 6 8 Three

Presentation,

Communication and Mannerism of staff Availability and quality of

brochures, sales material 26 32 20 24 18 Four

Level of product

Knowledge of bank staff Presentation,

Communication and Mannerism of staff

38 40 32 8 2 Five Availability and quality of

brochures, sales material

Groups Count Sum Average Variance

Row 1 5 120 24 186 Row 2 5 120 24 352 Row 3 5 120 24 362 Row 4 5 120 24 30 Row 5 5 120 24 314 ANOVA

Source of Variation SS df MS F P-value F crit

Between Groups 0 4 0 0 1 2.86608 Within Groups 4976 20 248.8

Total 4976 24 SUMMARY

Anova: Single Factor

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.

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ATTRIBUTES RANK OF BANK

1 2 3 4 5

Level of product

Knowledge of bank staff ICICI HDFC SBI BOB ANDHRA

Quality of response to

customer queries ICICI HDFC ANDHRA SBI BOB

Understanding of customer’s needs and unique perspective

ICICI SBI ANDHRA HDFC BOB Availability and quality of

brochures, sales material HDFC ICICI SBI BOB ANDHRA

Presentation,

Communication and Mannerism of staff

ICICI ANDHRA ANDHRA BOB SBI

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.

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B. SERVICE DELIVERY EXPERIENCE-

ATTRIBUTES

NO OF

RESPONDENTS RANKING

(Based on Weighted Average) 1 2 3 4 5

Timeliness of service

delivery 64 42 10 4 0 One

Timeliness of service delivery

Sharing of status while

work-in-progress 58 28 20 12 2 Two

Sharing of status while work-in-progress Quality and sophistication

of delivery 30 24 42 18 6 Three

Behavior and mannerism of delivery staff

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

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

44 36 22 10 10 Five Quality and sophistication

of delivery

SUMMARY

Groups Count Sum Average Variance

Row 1 5 120 24 774 Row 2 5 120 24 454 Row 3 5 120 24 180 Row 4 5 120 24 419.5 Row 5 5 122 24.4 234.8 ANOVA

Source of Variation SS df MS F P-value F crit

Between Groups 0.64 4 0.16 0.000388 1 2.866081

Within Groups 8249.2 20 412.46

Total 8249.84 24

Anova: Single Factor

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.

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ATTRIBUTES RANK OF BANK

1 2 3 4 5

Timeliness of service

delivery SBI HDFC ICICI ANDHRA BOB

Sharing of status while

work-in-progress BOB ANDHRA SBI ICICI HDFC

Quality and sophistication

of delivery SBI BOB ICICI ANDHRA HDFC

Behavior and mannerism

of delivery staff ICICI HDFC ANDHRA SBI BOB

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

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.

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C. SERVICE EXPERIENCE-

ATTRIBUTES

NO OF

RESPONDENTS RANKING

(Based on Weighted Average) 1 2 3 4 5

Level of service quality

vis-à-vis expectation 26 10 22 34 28 One

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

vis-à-vis expected 64 36 14 4 2 Two

Level of service quality vis-à-vis expectation

SUMMARY

Groups Count Sum Average Variance

Row 1 5 120 24 80

Row 2 5 120 24 682

ANOVA

Source of Variation SS df MS F P-value F crit

Between Groups 0 1 0 0 1 5.317655

Within Groups 3048 8 381

Total 3048 9

Anova: Single Factor

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 RANK OF BANK

1 2 3 4 5

Level of service quality

vis-à-vis expectation ICICI SBI HDFC ANDHRA BOB

Level of need fulfillment

vis-à-vis expected SBI ICICI 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.

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D. RELATIONSHIP EXPERIENCE-

ATTRIBUTES

NO OF

RESPONDENTS RANKING

(Based on Weighted Average) 1 2 3 4 5

Frequency and quality of

contact 58 28 14 16 4 One

Frequency and quality of contact

Knowledge of company products and customer opportunities

42 38 22 12 8 Two

Knowledge of company products and customer opportunities Conduct and Communication of relationship person 24 28 18 28 22 Three Conduct and Communication of relationship person SUMMARY

Groups Count Sum Average Variance

Row 1 5 120 24 434

Row 2 5 122 24.4 230.8

Row 3 5 120 24 18

ANOVA

Source of Variation SS df MS F P-value F crit

Between Groups 0.533333 2 0.266667 0.001172 0.998829 3.885294

Within Groups 2731.2 12 227.6

Total 2731.733 14

Anova: Single Factor

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.

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ATTRIBUTES RANK OF BANK

1 2 3 4 5

Frequency and quality of

contact HDFC ICICI ANDHRA BOB SBI

Knowledge of company products and customer opportunities

ICICI SBI HDFC BOB ANDHRA Conduct and

Communication of relationship person

ICICI BOB SBI ANDHRA HDFC

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.

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E. GRIEVANCE HANDLING-

ATTRIBUTES

NO OF

RESPONDENTS RANKING

(Based on Weighted Average) 1 2 3 4 5 Timeliness of complaint resolution 30 24 42 18 6 One Quality of complaint resolution Quality of complaint resolution 56 30 14 16 4 Two

Level of iterations till the complaint was resolved Level of iterations till the

complaint was resolved 44 36 22 11 9 Three

Knowledge and empathy of the customer servicing staff

Knowledge and empathy of the customer servicing staff

24 28 18 28 22 Four Timeliness of complaint

resolution

SUMMARY

Groups Count Sum Average Variance

Row 1 5 120 24 180

Row 2 5 120 24 406

Row 3 5 122 24.4 235.3

Row 4 5 120 24 18

ANOVA

Source of Variation SS df MS F P-value F crit

Between Groups 0.6 3 0.2 0.000953 0.999958 3.238872

Within Groups 3357.2 16 209.825

Total 3357.8 19

Anova: Single Factor

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.

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ATTRIBUTES RANK OF BANK

1 2 3 4 5

Timeliness of complaint

resolution ICICI SBI HDFC ANDHRA BOB

Quality of complaint

resolution SBI BOB ANDHRA ICICI HDFC

Level of iterations till the

complaint was resolved ICICI HDFC SBI BOB ANDHRA

Knowledge and empathy of the customer servicing staff

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.

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Annexure - I

Questionnaire for Study

1. NAME ______________________________ 2. E-MAIL ___________________________________________

3. Please tick mark-

I. AGE: Below 30 [ ] 30 – 40 [ ] 40 – 50 [ ] 50 and above [ ] II. GENDER: Male [ ] Female [ ]

III. INCOME: < 200,000 [ ] 200,000-300,000 [ ] 300.000-400,000 [ ] 400,000 > [ ] IV. OCCUPATION: Salaried [ ] Businessman [ ] Professional [ ] Housewife [ ] V. QUALIFICATION: Below graduate [ ] Graduate [ ] Above Graduate [ ] VI. MARITAL STATUS: Married [ ] Unmarried [ ]

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?

(30)

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

(31)

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

(32)

Thank You

Figure

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References

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