A project report on the perception of the customer about edc terminals at hdfc

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A project report on the perception of the customer about edc terminals at hdfc

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A project report on the perception of the customer about edc terminals at hdfc

  1. 1. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC Contents 1. Executive Summary 2. About HDFC 3. Product Profile 4. Background of the Problem 5. Objectives 6. Methodology 7. Findings 8. Suggestions 9. Conclusion 10. Annexure 11. BibliographyBabasabpatilfreepptmba.com Page 1
  2. 2. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC EXECUTIVE SUMMARY The growth of the banking industry is imperative for the economicdevelopment of the country. Banks have become customer – centric andcustomer relationship management has become a key component of the serviceprovided by the banking sector. The HDFC Corporation Limited was amongstthe first to receive an ‘in-principle’ approval from the Reserve Bank of India.HDFC Bank started electronic data capture (EDC) Service in Bangalore onJanuary 2002. The Study was done in and around Bangalore City with a sample size of200 merchants. It was done to find out the perception of customers about EDCterminals and to design promotion strategies for HDFC’s EDC Terminal. Theresearch has made to analyze the efficiency of the present system and to find outthe brand equity of banks providing EDC service. The data collected through thequestionnaires and telephone interviews were tabulated and analyze meaningfully. Finally, recommendations have been given in order to promote sales ofEDC machine in Bangalore market. INTRODUCTIONBabasabpatilfreepptmba.com Page 2
  3. 3. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC The Housing Development Finance Corporation Limited (HDFC) wasamongst the first to receive an ‘in-principle’ approval from the Reserve Bank ofIndia (RBI) to set up a bank in the private sector, as part of the RBI’sliberalization of the Indian Banking Industry in 1994. The bank was incorporatedin August 1994 in the name of ‘HDFC Bank Limited’, with its registered office inMumbai, India. HDFC Bank commenced operations as a Scheduled CommercialBank in January 1995.Promoter HDFC in India’s premier housing finance company and enjoys animpeccable track record in India as well as in international markets. Since itsinception in 1977, the Corporation has maintained a consistent and healthy growthin its operations to remain a market leader in mortgages in India. Its outstandingloan portfolio covers well over a million dwelling units. HDFC has developedsignificant expertise in retail mortgage loans to different market segments andalso has a large corporate client base for its housing related credit facilities. Withits experience in the financial markets, a strong market reputation, largeshareholder base and unique consumer franchise, HDFC was ideally positioned topromote a bank in the Indian environment.Business Focus HDFC Bank’s mission is to be a World-Class Indian Bank. The Bank’saim is to build sound customer franchises across distinct businesses so as to be thepreferred provider of banking services in the niche segments that the bankoperates in and to achieve healthy growth in profitability, consistent with thebank’s risk appetite. The bank is committed to maintain the highest level ofethical standards, professional integrity and regulatory compliance. HDFC Bank’sbusiness philosophy is based on four core values: Operational Excellence,Customer Focus, Product Leadership and People.Babasabpatilfreepptmba.com Page 3
  4. 4. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCCapital Structure The authorized capital of HDFC Bank is Rs. 450 core (Rs. 45 billion). Thepaid-up capital is Rs. 282 core (Rs. 28.2 billion). The HDFC Group holds 24.4%of the bank’s equity while about 13.2% of the equity is held by the depository inrespect of the bank’s issue of American Depository Shares (ADS/ADR Issue).The Indian Private Equity Fund, Mauritius (IPEF) and Indocean FinancialHolding Ltd., Mauritius (IFHL) (both funds advised by J P Morgan Partners,formerly Chase Capital Partners) together holds about 5.5% of the bank’s equity.Roughly 23% of the equity is held by FIIs, NRIs, and OCBs while the balance iswidely held by about 250,000 shareholders. The shares are listed on The StockExchange, Mumbai and the National Stock Exchange. The bank’s AmericanDepository Shares are listed on the New York Stock Exchange (NYSE) under thesymbol “HDB”.Times Bank Amalgamation In the milestone transaction in the Indian banking industry, Times BankLimited (another new private sector bank promoted by Bennett, Coleman &Co. /Times Group) was merged with HDFC Bank Ltd., effective February 26,2000. As per the scheme of amalgamation approved by the shareholders of bothbanks and the Reserve Bank of India, shareholders of Times Bank received 1share of HDFC Bank for every 5.75 shares of Times Bank. The amalgamationadded significant value to HDFC Bank in terms of increased branch network,expanded geographic reach, enhance customer base, skilled manpower and theopportunity to cross-sell and leverage alternative delivery channels.Babasabpatilfreepptmba.com Page 4
  5. 5. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCDistribution Network HDFC Bank is headquartered in Mumbai. The Bank at present has anenviable network of over 289 branches spread over 151 cities across the country.All branches are linked on an online real-time basis. Customers in 80 locations arealso serviced through Phone Banking. The Bank’s expansion plans take intoaccount the need to have a presence in all major industrial and commercial centreswhere its corporate customers are located as well as the need to build a strongretail customer base for both deposits and loan products. Being aclearing/settlement bank to various leading stock exchanges, the Bank hasbranches in the centers where the NSE/BSE have a strong and active memberbase. The Bank also has a network of over 750 network ATMs across these cities.Moreover, HDFC Bank’s ATM network can be accessed by all domestic andinternational Visa/Master Card, Visa Electron/Maestro, Plus/Cirrus and AmericanExpress Credit/Charge cardholders.Management Mr. Jagdish Capoor took over as the bank’s Chairman in July 2001. Priorto this, Mr. Capoor was a Deputy Governor of the Reserve Bank of India. The Managing director, Mr. Aditya Puri, has been a professional bankerfor over 25 years, and before joining HDFC Bank in 1994 was heading Citibank’soperations in Malaysia. The Bank’s Board of Directors is composed of eminent individuals with awealth of experience in public policy, administration, industry and commercialbanking. Senior executives representing HDFC are also on the Board. Senior banking professionals with substantial experience in India andabroad head various businesses and functions and report to the ManagingDirector. Given the professional expertise of the management team and theoverall focus on recruiting and retaining the best talent in the industry, the bankbelieves that its people are a significant competitive strength.Babasabpatilfreepptmba.com Page 5
  6. 6. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCComposition of the Board of Directors The composition of the Board of Directors of the Bank is governed by theBanking Regulation Act, 1949 and clause 49 of the Listing Agreement. The Boardhas strength of 9 directors as on 31 March, 2003. The Board has a combination ofExecutive and Non-Executive Directors. Mr. Jagdish Capoor, continues to be aNon-Executive Chairman and more than one half of the total number of directorsare independent directors. The Board consists of eminent persons with considerable professionalexpertise and experience in banking, finance and other related fields as specifiedin the Banking Regulation Act, 1949. As required by the said Act, the Board alsohas two directors viz. Dr. (Mrs.) Amla Samanta and Dr. Venkat Rao Gadwal withspecialized knowledge and experience in the small scale industry and agriculturalsector respectively. Two directors, Mrs. Renu Karnad and Mr. Keli Mistry represent theHDFC Group (the promoters) on the Board of the Bank. Mr. Anil Ahuja has beennominated on the Board by the Strategic investors viz, The India Private EquityFund (Mauritius) and Indocean Financial Holding Ltd. Since the shareholding ofthe strategic investors has been reduced to less than 7% of the share capital of theBank, Mr. Ahuja no more represents the strategic investors and now he is on theBoard in his individual capacity. Mr. Vineet Jain represents the Bennett andColeman Group. All directors other than Mr. Aditya Puri, Managing Director are non-executive directors on the Board. All directors other than Mr. Aditya Puri, Mr. Keki Mistry and Mrs. RenuKarnad are Independent Directors on the Board.Babasabpatilfreepptmba.com Page 6
  7. 7. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC The Bank has not entered into any materially significant transactions,which could have a potential conflict of interest with the Bank, with its promoters,directors, management or relatives etc. other than the transactions entered into inthe normal course of banking business.Technology HDFC Bank operates in a highly automated environment in terms ofinformation technology and communication systems. The entire bank’s brancheshave connectivity which enables the bank to offer speedy funds transfer facilitiesto its customers. Multi-branch access is also provided to retail customers throughthe branch network and Automated Teller Machines (ATMs). The Bank has madesubstantial efforts and investments in acquiring the best technology availableinternationally to build the infrastructure for a world-class bank. In terms of software, the Corporate Banking business is supported by Flexcube, while the Retail banking business by Fin ware, both from i-flex SolutionsLtd. The systems are open, scaleable and web-enabled. The Bank has prioritized its engagement in technology and the internet asone of its key goals and has already made significant progress in web-enabling itscore businesses. In each of its businesses, the Bank has succeeded in leveragingits market position, expertise and technology to create a competitive advantageand build market share.Business Profile HDFC Bank caters to a wide range of banking services coveringcommercial and investment banking on the wholesale side andtransactional/branch banking on the retail side. The bank has three key businessareas:-Babasabpatilfreepptmba.com Page 7
  8. 8. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC a) Wholesale Banking Services The Bank’s target market is primarily large, blue-chip manufacturing companies in the Indian corporate sector and to a lesser extent, emerging mid-sized corporate. For these corporate, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery/service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporate including multinationals, companies from the domestic business houses and prime Public Sector companies It is recognized as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks. b) Retail Banking Services The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to the customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking. The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programsBabasabpatilfreepptmba.com Page 8
  9. 9. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC have been designed keeping in mind needs of customers who distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Services to retail customers offering customers the facility to hold their investment in electronic form. HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Master Card Maestro debit card as well. The debit card allows the user to directly debit his account at the point of purchase at a merchant establishment, in India and overseas. The Bank launched its credit card in association with VISA in November 2001. The Bank is also one of the leading players in the “merchant acquiring” business with over 25,000 Point-of-sale (POS) terminals for debit/credit cards acceptance at merchant establishments. The Bank is well positioned as a leader in various net-based B2C opportunities including a wide range of internet banking service for Fixed Deposits, Loans, Bill Payments, etc. c) Treasury Operations Within this business, the bank has three man product areas – Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the financial markets in India, corporate need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank’s Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. TheBabasabpatilfreepptmba.com Page 9
  10. 10. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC Treasury business is responsible for managing the returns and market risk on this investment portfolio.RATING HDFC Bank has its deposit schemes rated by two rating agencies – Credit Analysis & Research Limited (CARE) and Fitch Ratings India Private Limited. The Bank’s Fixed Deposit programme has been rated ‘CARE AAA (FD)’ [Triple A] by CARE, which represents instruments considered to be “of the best quality, carrying negligible investment risk”. CARE has also rated the Bank’s Certificate of Deposit (CD) programme “PR 1+” which represents “superior capacity for repayment of short term promissory obligations”. Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the “tAAA (ind)” rating to the Bank’s deposit programme, with the outlook on the rating as “stable”. This rating indicates “highest credit quality” where “protection factors very high”. In each case referred to above, the ratings awarded were the highest assigned by the rating agency for those instruments.CORPORATE GOVERNANCE RATING The bank was one of the first four companies which subjected itself to aCorporate Governance and Value Creation (GVC) rating by the rating agency,The Credit Rating Information Services of India Limited (CRISIL). The ratingprovides an independent assessment of an entity’s current performance and anexpectation on its “balance value creation and corporate governance practices” infuture. The bank has been assigned a ‘CRISIL GVC Level 1’ rating whichindicates that the bank’s capability with respect to wealth creation for all itsstakeholders while adopting sound corporate governance practices is the highest.Babasabpatilfreepptmba.com Page 10
  11. 11. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCPRODUCT RANGESaving, Fixed Deposits, Current and Demat AccountsSaving Account : Apart from the usual facilities, you get a freeATM Card, Inter branch banking, Net Banking, Bill Pay, Phone Banking, DebitCard and Mobile Banking, among others.HDFC Bank Preferred : A preferential Savings Account where youare assigned a dedicated Relationship Manager, who is your one-point contact.You also get privileges like fee waiver, enhanced ATM withdrawal limit, prioritylocker allotment, free Demat Account and lower interest rate on loans, to name afew.Sweep-in Account : A fixed deposit linked to your Saving Account. So,even if you’re Savings Account runs a bit short, you can cheque (or use yourATM Card). The money is automatically swept in from your in from your fixeddeposit into your Savings Account.Super Saver Account : Gives you an overdraft facility up to 75% ofyour Fixed Deposit. In an emergency, you can access your funds while your FixedDeposit continues to earn high interest.HDFC Bank Plus : Apart for Regular and Premium Current accountswe also have HDFC Bank Plus, a Current Account and then some more. You cantransfer up to Rs. 50 lakh per month at no extra charge, between the four metros.Your can also avail of cheque clearing between the four metros, get cashBabasabpatilfreepptmba.com Page 11
  12. 12. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCdelivery/pickup up to Rs. 25,000/-, home delivery of Demand Drafts, at-parcheques, outstation cheque clearance facility, etc.Demand Account : Conduct hassle-free transactions on your shares.You can also access your Demat Account on the Internet.Innovative Services for your convenience...Phone Banking : 24-hour automated banking services with 39Phone Banking numbers available.ATM 24-hour Banking: Apart from routine transactions, you can also payyour utility bills and transfer funds, at any of our ATMs across the country allyear round.Inter-city/inter branch banking : Access your account from any of our289 branches in 151 cities.Net Banking : Access your bank account from anywhere in theworld, at anytime, at your own convenience. Your can also view your DematAccount through Net Banking.Mobile Banking : An ATM card your can shop with all overthe country and in over 140 countries with. You can spend in any currency, andpay in Rupees.Mobile Banking : Access your account on your mobilephone screen at no airtime cost. Use SMS technology to conduct your bankingtransactions from your cell phone.Babasabpatilfreepptmba.com Page 12
  13. 13. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCBill Pay : Pay your telephone, electricity andmobile phone bills through our ATMs, Internet, phone or mobile phone. No morestanding in long queues or writing cheques.Loans for every need Now, loans come to you in easy-to-pay monthly installments, and areavailable with easy documentation and quick delivery. With e-instant loans, youcan even apply for loans on the Net and approval in just 60 seconds.Personal Loans : Take a loan of up to Rs. 3 lakh for a wedding,education, purchase of computer or an exciting holiday.New Car Loans and Used Car Loans: Finance up to 90% of the cost of acar, new or used! And the loans come to you with easy documentation and speedyprocessing at attractive interest rates.Loans against Shares : Get an overdraft up to Rs. 10 lakh at an attractiveinterest’s rate against physical shares, up to 50% of the market value of yourshares. In case of Demat Shares, you can get Loans against Shares of up to 65%of the market value of your shares, till Rs. 20 lakh.Two Wheeler and Consumer Loans: To help you buy the best durables foryour home.Demat Account : Protect your shares from damage, loss andtheft, by maintaining your shares in electronic form. You can also access yourdemat account on the internet.Babasabpatilfreepptmba.com Page 13
  14. 14. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCCurrent Account : Get a personalized cheque book, monthlyaccount statements, interbranch banking and much more.Mutual Funds : Apart from a wide choice of mutual funds to suityour individual needs, you benefit from expert advice on choosing the right fundsbased on in-depth market analysis.International Credit Card: Get an option of Silver, Gold, or Health plus Creditcard, accepted worldwide from a world-class bank. If you have outstandingbalance on your other credit cared, you can transfer that balance to this card at alower interest rate.NRI Services : A comprehensive range, backed by unmatchedfeatures and world-class service, ensures NRIs all the banking support they need.Forex Facilities : Avail of foreign currency, travelers cheques,foreign exchange demand drafts, to meet your travel needs.Insurance* : HDFC Bank now brings your life insurance and Pension Solutionslike Risk Cover Scheme, Saving Scheme, children’s Plan and Personal Plan fromHDFC Standard Life Insurance Co. Ltd.Babasabpatilfreepptmba.com Page 14
  15. 15. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCAwards and Achievements – Banking Services HDFC Bank began operation in 1995 with a simple mission: to be a“World-class Indian Bank”. We realized that only a single-minded focus on product quality andservice excellence would help us get there. Today, we are proud to say that we arewell on our way towards that goal. It is extremely gratifying that our efforts towards providing customerconvenience have been recognized both nationally and internationally. In the year 2000, leading financial magazine Forbes Global named us inits list of “The 300 Best Small Companies” in the world and as one of the “20 for2001” best small companies in the world. In 2003, Forbes Global again named us in its ranking of “Best Under aBillion, 200 Best Small Companies for 2003”. London-based Euro money magazine gave us the award for “Best BankIndia” in 1999, “Best Domestic Bank” in India in 2000, and “Best Bank inIndian” in 2001 and 2002.Babasabpatilfreepptmba.com Page 15
  16. 16. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC Hong Kong-based Finance Asia magazine rated us “Best DomesticCommercial Bank in India” in 1999, 2000 and 2001 respectively and “Best LocalBank in India” in 2002. Asia money magazine has named us “Best of Commercial Bank in India2002”. The Economic Times has conferred on us The Economic Times Awardsfor Corporate Excellence as the Emerging Company of the Year 2000-01. Another leading Indian business magazine Business Today in a surveyrated us “Best Private Sector Bank” in India in 1999 and “Best Bank in India” in2003. For our use of information technology we have been recognized as a“Computer world Honors Laureate” and awarded the 21st Century AchievementAward in 2002 for Finance, Insurance & Real Estate category by Computerworld, Inc., USA. Our technology initiative has been included as a case study intheir online global archives. NASSCOM and economictimes.com have named us the “Best IT User inBanking” at the IT Users Awards 2003. HDFC Bank has been named Best Domestic Bank in India Region in TheAsset Triple a Country Awards 2003. We are aware that all these awards are mere milestones in the continuing,never-ending journey of providing excellent service to our customers. We areconfident, however, that with your feedback and support, we will be able tomaintain and improve our services.Babasabpatilfreepptmba.com Page 16
  17. 17. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC PRODUCT PROFILE Today is an era of smart money, or plastic money. The very concept ofcurrency notes are getting changed day-by-day as more and more people aregoing for credit and debit cards. Nowadays life being to fast that people don’t want to stand in the queue ofconventional banks which have taken at least a half hour or so. Apart from thepeople don’t want to carry cash to increases the thickness of their wallet for allthese reasons concept of smart money or plastic money have come to picture inthe form of various credit and debit cards. Moreover a carry 2-3 card in wallet isseen as al status symbol in the society. For your every need you have credit card which can buy each and everything. Your think of it you can buy it from your credit card. Starting from a packof salt from the departmental store to complex software from the vendor you canbuy everything from your credit card. But how this system actually works? Howcan you buy a thing just by a swipe of plastic card?Babasabpatilfreepptmba.com Page 17
  18. 18. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC Answer is through EDC machines (electronic data capture), which themerchant or the shopkeeper should have if he accepts credit cards. Thesemachines are connected by the normal telephone lines to the banks server, whichhave a database of the cardholder. From this database it checks whether a particular person is eligible topurchases that thing. If yes, it sends the approval to EDC terminal installed atmerchant shop. All this happens in couple of seconds. Then the purchases cycleget over by just a swipe of a card. And the amount immediately gets credited inmerchants account in the bank automatically. Demand of EDC terminals areincreasing day by day as sizable population is having credit or debit cads. Somerchants don’t have any option but to have a EDC terminal in his hop. It hasbeen proved from this study that there has been increase of business in the shopafter installing the EDC terminal. Because now they have added credit / debitcardholder’s in their customer list. With the advantage of aggressive advertising consumers are provided tobuy things. Or you may get some urgency to buy something It may be possiblethat one may not be having cash all the time for such problem there is a solutionin the form of credit or debit cards. Now to make such purchase happen or if youwant your customer to buy more you have to accept credit card for that EDCterminal is must. Gone are the days when the perception of services remained confined towork with only service motto, without charging any fee or without accepting anyobligation. The time cycle, coiling more dynamism in its nature, necessitates achange in perception as willy-nilly, we do not venture to go against the wild. Themechanized system of development paves ways for socio-economic transaction,which makes possible an increase in the level of disposable income. When weearn more, we like to spend more. We take interest in utilizing our leisure time orBabasabpatilfreepptmba.com Page 18
  19. 19. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCavailing the modern amenities and facilities. The imbalance in demographicstructure complicates the task of policy makers, especially in terms of creatingand expanding the job opportunities.OPERATIONAL DEFINITION 1. EDC Machine:- Electronic data capture machine which is used in transaction involving credit cards and debit cards. 2. Swipe:- Swipe is the touch of a debit card/credit card basically to the EDC machine, cards have a magnetic stripe at the back of it which contain all the information about the card holder. So the movement a card is swiped in the EDC terminals all information about the cardholder goes to bank server. 3. Approval:- Approval is given by the bank whether a card holder is eligible for a credit card or not. Once a card has been swiped the entire data goes to bank server and it checks whether the cardholder is eligible for the creditBabasabpatilfreepptmba.com Page 19
  20. 20. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC card. It send approval immediately to the EDC terminal in which card has been swiped. 4. Batch settlement:- Batch settlement is done at the day end of the business. All the transaction of the day of each terminal is recorded in the bank server. At the day end when the merchant does the batch settlement on his EDC terminal whatever amount of transaction he did on the gets credited to his current account.HDFC Bank’s Merchant Establishment Operation HDFC Bank presents the most powerful Merchant Services programmethat enables Merchant Establishment to accept both Credit and Debit cardpayments in the most efficient manner. HDFC Bank understands business needs and has tailor-made offering tofacilitate smooth running of business. Credit and Debit cards have become themost preferred mode of payment by customers at Merchant Establishment.Merchant Services programme enables to accept all major Credit and Debit cardsissued in India and abroad. HDFC’s full range of Merchant Services programme comprises of aMerchant Current Account, EDC terminals to facilitate online acceptance ofCurrent Account, EDC terminals to facilitate online acceptance of Credit andDebit cards and electronic settlement of card transactions. Trained relationshipstaff to take care of day-to-day requirements supports all this.Babasabpatilfreepptmba.com Page 20
  21. 21. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCWIDEST RANGE OF CARDS ACCEPTED As HDFC’s Merchant establishment, merchant can accept VISA, MasterCard, VISA Electron, Master Card Electronic cards. Merchants can also acceptAmerican Express Cards on the terminals providing by HDFC Bank.Electronic Processing HDFC Bank provides state-of-the-art, latest generation EDC terminals thathandle authorization and settlement of transaction. This assists Merchant inprocessing card transaction in the most efficient and secure manner, atestablishment. HDFC has thereby eliminated the need for cumbersome and timeconsuming manual authorizations as well as preparation of paper charge slip thatresult in delayed or missing payment.Quick Payment Payment for all settled Merchant transaction are made on the next businessday, and are electronically credited in Merchant Current Account with HDFCBank. This ensures that your funds are available to Merchant as early as possiblefor your business needs.Pricing Options HDFC’s pricing options are customized to suit Merchant’s Businessneeds. The services are priced to suit the scale and size of every business. HDFCalso offer terminals under a monthly rental scheme to extend services to smallerestablishments as well.National Coverage In case business is spread over multiple cities in India, HDFC providetailor-made solution to cater to merchants national requirement.Babasabpatilfreepptmba.com Page 21
  22. 22. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCMerchant Current Account Options With HDFC’s Current Accounts, there are less delays and hassles inhandling payments for cards accepted by merchant. Unlike cheque payments,HDFC provide a totally electronic settlement solution. Wherein payments forsettled card transactions are credited automatically in the merchant’s currentaccount with HDFC Bank. Merchant can also access Merchant Current Accountusing HDFC’s Free Phone Banking and Free Net Banking services. There ismultiple Merchant Current Account option.HDFC Bank Merchant PlusSingle account, multi-city banking If merchants business regularly requires receiving and sending funds tovarious cities in the country, HDFC Bank Merchant Plus Account provides yourwith the means to facilitate such transaction efficiently. With just one accountMerchants have access to more than 85 cities in the country. In other words, thepower of a single account and multi-city banking. This results in huge saving onintercity movement of funds and other service charges. The average balancerequirement for the HDFC Bank Merchant Plus account is Rs. 50,000 per quarter.Exclusive benefits for the HDFC Bank Merchant Account holders • Free at-Par cheque facility • Free funds transfer • Free Pay-Order/Demand Draft payable on HDFC Bank locations. • Free online, real time Net Banking • Huge savings on Bank charges. • Cash pick-up (available in selected cities) and Demand Draft delivery at a nominal cost. • Free Debit Card for sole proprietors.Babasabpatilfreepptmba.com Page 22
  23. 23. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCRegular Merchant Current Account The regular Merchant Current Account offers you trouble-free bankingwith a very reasonable average quarterly balance requirement of Rs. 10,000 only.Besides, HDFC will give a Free-International Debit Card (only for soleproprietors). HDFC also offer a zero Balance Merchant Current Account for merchantpayments. However, branch transaction like cash deposit, cash withdrawal etc. isnot permitted under this Merchant Current Account.Facilitation of payments through Credit and Debit cardsElectronic processing:- HDFC Bank provides Electronic terminals for processing card transaction.Online, Real time:- All transaction are confirmed with Issuing Banks online, real-time beforehandling over of goods/services.Quick Settlements:- HDFC Bank pays for the transaction the next business by morning.MIS Reports:- HDFC Bank provides two levels of MIS reports for easy reconciliationProduct Features All Visa/Master Card/American Express Credit Cards (subject to theagreement signed with AMEX bank) and all Visa Electron/Maestro Debit Cards.Babasabpatilfreepptmba.com Page 23
  24. 24. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC Latest State-of-Art EDC terminal including the first mobile EDCPersonalized service by Bank staff. Payment options – Credit to Account or Cheque (only to very largerelationships) Competitive pricing including Rental option for EDCsThree Current Account Options Zero Balance Current Account Regular Merchant Current Account Merchant Plus Account All Regular Current, Trade and Plus accounts can be linked to theMerchant A/c.Regular Merchant Current Account Free Debit Cards Daily Cash Deposit limit of Rs. 25,000 Free Cheque BookMerchant Plus Account Free Debit Card Enhanced Cash Pick-up limit of Rs. 1 Lac per day Free Multi city cheque BookRecord maintenance by Merchant A copy of Charge slips by Cardholders for a period of one year Copies ofBills for which the cardholders is being charged.Babasabpatilfreepptmba.com Page 24
  25. 25. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCSet-up/Infrastructure • Operations Centralized at Chandivalli • Merchant Relationship Officers front-ending the Sales Relationship • Merchant Helpdesk operational • EDC Terminals installed and maintained by the Bank • Back-end systems owned and operated by the BankALL transactions of a day are paid for the next business day morningCard Brand Accepted All Credit and Debit Cards issued by Banks in India and abroad under anyof the following brands can be accepted on EDC terminals provided by HDFCBank: - Visa - Master Card - Visa Electron - Maestro - Master Card Electronic - American Express (Terminal sharing arrangement)Process for Merchant - HDFC Bank shall provided EDC terminals at Merchant outlet - Merchant to provide shall be completed by swiping the customer cards on the EDC terminals - Swiping the customer cards on the EDC terminals shall complete all Cards transactions. - At the end-of-the day, a Settlement function is performed on the EDC. All transition - Upon successful completion of settlement, the EDC terminal provides a detailBabasabpatilfreepptmba.com Page 25
  26. 26. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCSummary report - HDFC Bank shall credit Merchant’s Account with the net proceeds on the next business day morning - HDFC Bank shall also provide a detailed MIS report for the Settlements from each location/EDC terminal for merchants with of Rs. 1 Lac and aboveTarget Merchant Categories • Petrol Pumps • Retailers – Apparels, Departmental Stores, Book stores, Music stores etc. • Restaurants • Hotels • Consumer durables dealers • Computer dealer • Travel Agents – IATANegative Merchant Categories • Jewelers (Non Citi/HSBC) • Travel Agents – non IATA • Carpet Merchants • Curios/Handicrafts catering to Foreign TouristsCompetitorsMain Competitors:CITI BANK Default choice, Blanket pricing, poor Relationship and highhandedapproach. Only other acquirer to accept PIN based cardsBabasabpatilfreepptmba.com Page 26
  27. 27. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCHSBC Very strong Relationship based offering, Amex terminal sharing is themain advantage, Present at high-end Merchants and all Hotels, Key to success isAmex terminal sharing.ICICI Fast emerging as a key player in Z cat and Citi strongholds.Other key players:BOB Cards Low-end Merchants, no ownership of terminals and infrastructure. Poorservice delivery, pricing above ‘normal’. IDBI, Bank of India and other Public Sector Banks BACKGROUND OF THE PROBLEM The survey was conducted to find the perception of customers about EDCterminals and to design promotion strategies for HDFC’s EDC terminalsBangalore market. This is about sales promotion of HDFC’S EDC machine inBangalore market. This survey is for potential customers. This includes thecomprehensive market survey and studying the dynamics of the market in termsof perception. And it also includes the analysis of the information gathered andimplementation of sales strategies and techniques devised by the team.Babasabpatilfreepptmba.com Page 27
  28. 28. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCThe study was conducted to analyze the merchant requirements and servicerelated issue concerned with the EDC (Electronic Data Capture) machine and thenproceed to sales.Tools such as questionnaires, telephonic interviews were used in identifying therequirements and structured interviews were used to proceed further. STATEMENT OF PROBLEMToday is an era of smart money or plastic money. The very concept of currencynotes are getting changed day-by-day as more and more people are going forcredit and debit cards. People do not prefer to carry cash that increases thethickness of their wallet and concept of smart money or plastic. Money has comeinto picture in the form of various credit cards. To carry 2-3 cards in wallet is seenas status of symbol in the society.Merchant Establishment: - This department started its operations in Bangalorein the year 2002. The complete department deals with only one product and that is“The EDC (Electronic Data Capture) machine” because HDFC Bank found aneed to enter the market of EDC machine in Bangalore as the silicon City washaving a very high potential for merchants who were in need of this machine andBabasabpatilfreepptmba.com Page 28
  29. 29. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCwere was less awareness about this particular product. Though there are morethan around 15 players in this market its main competitors are CITI, ICICI, andHSBC. It’s gained the late mover advantage by giving additional services andestablishing stronger relationship with the merchant.The study aims at deriving information about non customers of HDFC and thewillingness level among those customers to change to HDFC’S EDC machine. NEED AND IMPORTANCE OF THE STUDY Presence of a large number of players especially in the banking sector hasensured stiff competition in the industry. Competition is based on technology,benefits given, and services provided and more importantly price. Key to successis therefore value additional in the service but at affordable prices.Babasabpatilfreepptmba.com Page 29
  30. 30. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC. The survey intends to gain knowledge of the non customers in theBangalore market and determine the pulse of the market regarding the acceptanceof the EDC terminal, and to know the satisfaction level also. The bank can extendits added services to customers and draw attention towards the additional benefitsthe merchant would be entitled to if he would implement the banks EDC machine OBJECTIVE OF THE STUDY 1. To know the perception of the customer about EDC terminals. 2. To find out the Brand Equity among the EDC Terminal providers.. 3. To suggest creative ways for promoting and penetrating the Market. 4. To create knowledge about the EDC terminals provided by HDFC.Babasabpatilfreepptmba.com Page 30
  31. 31. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC LIMITATIONS1. The collected data is confined only into the boundaries of Bangalore market.2. Sometimes respondents may provide false information.3. Questionnaire survey and personal interviews are the main techniques used in this study, which are wholly based on the perception of the respondents at the time of answering.4. Time and resources are also limiting factors of the study. METHODOLOGY• Well-structured questionnaire comprising both open-ended and closed questions were designed for the respondent.• A pilot survey was conducted to ensure the accuracy of the designed questionnaire• The necessary changes were made in the questionnaire and the actual survey was conducted after the approval from the project guide.• Personal interviews were conducted as per the convenience of the respondents and also keeping the time –constraint.• Collection of data from customersBabasabpatilfreepptmba.com Page 31
  32. 32. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC1. The primary data from the respondents is obtained through structured questionnaire as well as telephonic interviews administering questionnaires as per the convenience of the respondents.2. This data was collected from the records existing in the bank, company website & through internet. TYPE OF RESEARCH The research work is of descriptive type. A research design is purely andsimply the frame work or plans for a study that guides the collection and analysisof data. The information is collected from the 200 merchants having EDC machine(Non HDFC) in their firms. The information regarding the role of factorsaffecting sales promotion and their present EDC services.Babasabpatilfreepptmba.com Page 32
  33. 33. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC RESEARCH DESIGNSAMPLE UNIT : Merchants and Businessmen having EDC terminals (Non HDFC).SAMPLE SIZE : The sample size taken for the study was 200SAMPLING TECHNIQUE : In this study convenience sampling method was used to draw the sample size of 200 merchants having EDC machine (Non HDFC) in their shops. ACTUAL COLLECTION OF DATA Data was collected from both primary and secondary source.PRIMARY DATA The interviewer approached the respondents, and a structuredquestionnaire was given to the respondents with a request to answer the questionsand return the questionnaire.SECONDARY DATABabasabpatilfreepptmba.com Page 33
  34. 34. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC Data was also collected from the records existing in the bank. TECHNIQUE FOR ANALYSIS Data collected through questionnaire has been analyzed using simplepercentage analysis. Based on the analysis conclusions and suggestion have beendrawn. SAMPLE DESCRIPTION For this project, mainly considering EDC machine using shop, thisincluding Petrol pumps, Retail-Apparels, Departmental store, Book stores, Musicstores etc., Restaurants & Hotel etc.,Field Work This study was made from April 2005 to May 2005during this period thefollowing days were distributed as below. - Six days for pilot study. - Seven days with dissuasion with Organization Guide - Seven days for preparing questionnaire - Twenty days collection of primary data. - Twenty days for the revised primary data collected and discussion with faculty guide. Findings1. According to you EDC terminals are convenient for: Finding Opinion No. of Respondents Percentage Convenient for Customers 42 21 Convenient for business 8 4 Both 150 75 Total 200 100Babasabpatilfreepptmba.com Page 34
  35. 35. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC 21% 4% Convenient for Customers Convenient for business Both75% It can be concluded from the above table that 75% of the respondents had opinion that EDC facility was convenient for both business and the customers, 21% of the respondents feels that EDC facility was convenient for customer, 4% of respondents feels that it was convenient for business. Babasabpatilfreepptmba.com Page 35
  36. 36. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC2. Are you Aware of HDFC’s EDC terminal & service? Findings Opinion No. of Respondents Percentage Opinion Yes No. of Respondents 180 Percentage 90 NoYes 20194 10 97 No Total 200 6 100 3 Total 200 100 The above table shows that, out of respondents, 97% of them were awareabout the EDC services providing by HDFC and 3% of them of them were notaware about the service. 3% 97 %3. Are you Aware of HDFC’s tie-up with American Express onterminal sharing? FindingBabasabpatilfreepptmba.com Page 36
  37. 37. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC 10 % YES NO 90 % The above table shows that,90% of the respondents were aware ofHDFC’s tie-up with American express on EDC terminal sharing,10% of therespondents were not aware of tie-up with American express Bank.Babasabpatilfreepptmba.com Page 37
  38. 38. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC 4. Rank the following in order of Brand equity among EDC service? (1 for highest Brand equity and 5 for lowest Brand equity) Opinion Points Rank CITI Bank 862 1 ICICI Bank 823 2 HDFC Bank 782 3 HSBC Bank 292 4 STAN-C 241 5 Findings 1000 800 600 400 200 0 CITI ICICI HDFC HSBC STAN- CBabasabpatilfreepptmba.com Page 38
  39. 39. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC The above table shows that, in terms of brand equity CITI Bank got firstrank among EDC service providing banks, ICICI Bank got second rank, HDFCBank got third rank, HSBC and STAN-C bank got fourth and fifth rankrespectively.5. What are the rates charged by the present terminal you use? Findings Rates No. of Respondents Percentage < 1.85% 120 60 1.85%- 2% 74 37 > 2% 6 3 Total 200 100 60 50 40 30 20 10 0 <1.85% 1.85% - 2% >2% The above graph shows that 60% of the sample is charged less than1.85%, 37% is charged between 1.85% - 2% and only 3% are charged more than2%.Babasabpatilfreepptmba.com Page 39
  40. 40. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC Opinion No. of Respondents Percentage Yes 160 80 No. 40 20 Total 200 1006. Are you satisfied with present rates charged? Findings 20 % YES NO 80 % The above table reveals that, 80% of the respondents were satisfied withpresent rates. 20% of the respondents were not satisfied with present ratesBabasabpatilfreepptmba.com Page 40
  41. 41. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC 7. What was the most important factor for selecting the present bank’s EDC Terminal you use? Opinion No. of Respondents Percentage Pricing 122 61 Service 46 23 Approached First 16 8 Relationship with the 14 7 bank Other 2 1 Total 200 100 Finding70 6160504030 2320 8 710 10 Pricing Service ApproachedRelationship Other First with the bank Babasabpatilfreepptmba.com Page 41
  42. 42. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC The above table shows that, 61% of the respondent had opinion thatpricing offered was the factor for selecting the present bank’s terminal, 23% of Average turnover(Rs.) No. of Respondents Percentage <25000 20 10 25000 - 50000 60 30 50000-100000 28 14 100000 - 200000 18 9 200000 - 500000 44 22 500000 - 1000000 24 12 >1000000 6 3 TOTAL 200 100the respondent agreed that service provided was the factor, 8% of respondentsgave respect to the first approach made by bank, 7% of respondents agree respectfor their earlier relationship with the bank, 1% of the respondents assess otherfactors.8. What is your Average monthly card turnover? Findings 35% 30% 25% 20% 15% 10% 5% 0% 00 0 0 00 0 00 25 20 50 -5 10 -1 10 < 0- 0- 25 0- 50 > 10 20 50Babasabpatilfreepptmba.com Page 42
  43. 43. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC It can be concluded from the above table, 10% of the respondents agree that they have turnover of less than Rs.25,000 per month, 30say between Rs. 25,000-50,000, 14% say between Rs.50,000- 1,00,000, 18% say between Rs.1,00,000- 2,00,000, 22% say between Rs2,00,000-5,00,000, 12% say between Rs. 5,00,000-10,00,000 and only 3% of the respondents say above Rs.10,00,000. 9. How do you rate the response on redressal of complaints by the present terminal provider ? FindingsBabasabpatilfreepptmba.com Page 43
  44. 44. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC Opinion No. of Respondents Percentage Very Fast 56 28 Fast 140 70 Slow 4 2 Very Slow 0 0 Total 200 100 70% 60% 50% 40% 30% 20% 10% 0% VERY FAST SLOW VERY FAST SLOW It can be concluded from the above table that, 29% of the respondentsagreed that the redressal of complaint was fast, 70% of the respondents agreed theredressal of complaint was very fast, 2% of the respondent opined that theredressal of complaint was slow, 0% of the respondent opined that the redressal ofcomplaints was very slow.Babasabpatilfreepptmba.com Page 44
  45. 45. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC 10. Is the EDC machine regularly serviced by the provider? Opinion No. of Respondents Percentage Yes 180 90 No. 20 10 Total 200 100 Findings 10 % YES NO 90 % The above table reveals that, 90% of the respondents agree that theirmachine being serviced regularly. 10% of the respondents did not agree in thisregard.Babasabpatilfreepptmba.com Page 45
  46. 46. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC11. Does your relationship officer visit you regularly? Opinion No. of Respondents Percentage Yes 190 95 No. 10 5 Total 200 100 Findings 100% 80% 60% 40% 20% 0% YES NO The above table reveals that 95%of the respondents agreed that theirrelationship officer were approached regularly, 5% of the respondent did notagree in this regard.Babasabpatilfreepptmba.com Page 46
  47. 47. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC12. Are you satisfied with the present service provided by the EDC Terminal provider? Opinion No. of Respondents Percentage Yes 150 75 No. 50 25 Total 200 100 Findings 25% YES NO 75% The above table reveals that, 75% of the respondents were satisfied withpresent service. 25% of the respondents were not satisfied with present service.Babasabpatilfreepptmba.com Page 47
  48. 48. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC 13. Has a HDFC sales person approached you before? Opinion No. of Respondents Percentage Yes 192 96 No. 8 4 Total 200 100 Findings 100% 80% 60% 40% 20% 0% YES NO The above table reveals that 96%of the respondents agreed that HDFC salesperson approached before, 4% of the respondent did not agree in this regard.Babasabpatilfreepptmba.com Page 48
  49. 49. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC14. Would you buy a HDFC EDC Terminal if you get lower rates? Findings Opinion No. of Respondents Percentage Yes 120 60 No. 80 40 Total 200 100 60% 50% 40% 30% 20% 10% 0% YES NOBabasabpatilfreepptmba.com Page 49
  50. 50. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC The above table reveals that 60%of the respondents agreed to change toHDFC, 40% of the respondent did not agree in this regard.15. Would you buy a HDFC EDC Terminal if you get more value added services? Findings 80% 60% 40% 20% 0% YES NOBabasabpatilfreepptmba.com Page 50
  51. 51. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC The above table reveals that 65%of the respondents agreed to change to HDFC, 35% of the respondent did not agree in this regard. Opinion No. of Respondents Percentage Yes 130 65 No. 70 35 Total 200 10016. Would you buy a HDFC EDC Terminal if bank branch is near to you? Findings Opinion No. of Respondents Percentage Yes 110 55 No. 90 45 Total 200 100 60% 50% 40% 30% 20% 10% 0% YES NOBabasabpatilfreepptmba.com Page 51
  52. 52. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC The above table reveals that 55%of the respondents agreed to change toHDFC, 45% of the respondent did not agree in this regard17. Would you buy a HDFC EDC Terminal if documentation procedure is easier ? Findings Opinion No. of Respondents Percentage Yes 114 57 No. 86 43 Total 200 100Babasabpatilfreepptmba.com Page 52
  53. 53. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC 60% 50% 40% 30% 20% 10% 0% YES NO The above table reveals that 57%of the respondents agreed to change toHDFC, 43% of the respondent did not agree in this regard. FINDINGS1. 75 % of the sample said that they were satisfied with their present EDC terminal provider.2. 75% of the sample opinioned that EDC machines were convenient for both customers and business.3. 97% of the sample was aware of HDFC providing the EDC terminal.4. 90 % of the sample said that they were aware of HDFC’s tie up with American Express card in the terminal.5. In terms of brand equity Citibank (862 pts) was ranked first, followed by ICICI (823) and HDFC (782).Babasabpatilfreepptmba.com Page 53
  54. 54. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC6. 90 % sample opinioned that their machines were being serviced regularly.7. HDFC’s sales person had approached 96 % of respondents earlier for an EDC terminal.8. 60 % of the sample said that they would switsh to a HDFC terminal if lower rates were charged.9. 61 % of the respondents said that pricing was the most important factor for selecting an EDC terminal, followed by service level( 23 %).10. 55 % of the respondents opinioned that nearness of the bank was an important factor in selecting the terminal.11. 57 % of the respondents said that they would go in for a HDFC terminal easier documentation.12. Most opinioned those merchant services promptly attended to their complaints (Very Fast 28%, Fast 70%, Slow 2%, Very Slow 0%).13. 65 % of the respondents said that they would go in for a HDFC terminal if more value added services were provided. SUGGESTIONS The Market for EDC Terminals is highly competitive with many largeestablished players. Promoting the sales of EDC terminals and penetrating themarkets in such competitive situations is a challenging task. 75 % of therespondents of the said that they are satisfied with their present EDC terminalproviders, this makes the promotion and penetration of HDFC EDC terminals intothe market even more difficult.Babasabpatilfreepptmba.com Page 54
  55. 55. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC The findings however reveal a few important points, which would helppromote the HDFC terminals. The suggestions are as follows. 1. Provide more value added services as 65 % of the respondents said that they would go in for a HDFC terminal if more value added services were provided. 2. HDFC should charge lower rates than its main competitors in order to promote sales as 60 % of the sample said that they would purchase a HDFC terminal if lower rates were charged. 3. HDFC should keep its documentation procedure simple. 4. HDFC should try and solve its customers complaints as fast as possible as most of the respondents rated their present terminal providers as “fast” in attending to their complaints. HDFC can promise to solve its customers complaints within some time frame. 5. As 96 % of the respondents said that a HDFC sales person had earlier visited them for a EDC terminal connection, HDFC must take into consideration the findings and suggestions of this project and develop new promotion strategy before approaching the potential customers. 6. HDFC must concentrate on providing better service than its competitors and make sure that HDFC’s relationship officers visit the customers frequently so that it doesn’t lose its customers to its competitors. CONCLUSION Merchant service sector has become extremely complex. Today’scustomers demand more and more facilities from their bank. Most merchantswere aware about the facilities provided by the bank. In this era of cutthroatBabasabpatilfreepptmba.com Page 55
  56. 56. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCcompetition, banks have to focus on customer care and in attracting newcustomers. This project helps in studying the EDC service providers in Bangalore market, and determining customer’s willingness to change to HDFC. The project also aimed at ascertaining the competition level in the EDC machine segment. To conclude CITI enjoys the most number of customers in this category followed by ICICI,HDFC AND HSBC behind in the queue. Finally we conclude by determining the most of the merchantanticipated greater returns from the bank in the form of higher discount, greaterbenefit and better service. IMPLICATIONBabasabpatilfreepptmba.com Page 56
  57. 57. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC This study gives relevant information to the company to adopt the best promotional strategy, to know about the players in market and their marketing strategy. It helps the company to know more about the present status of market and how to target the audience, how to promote sales, how to fix the rates charging to satisfy customers. This study is helpful for the company to know the nook-n-corner of market. It gives information about needs and wants of the customers, reasons for their acceptance, and desired rate charging. BIBLIOGRAPHYBabasabpatilfreepptmba.com Page 57
  58. 58. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCBOOKS 1. Tull & Hawkins “Marketing Research”. 2. Donald R. Cooper & Pramela S. Schindler “Research Methodology” 1999, Tata Mc Graw Hill 3. Philip Kotler “Marketing Management” 1999, Prentice Hall of India Pvt. Ltd. 4. Valeri Ziethamal Services Marketing Tata Mc Graw Hill 5. Company Journals Website- www.hdfcbank.com QuestionnaireName of the Firm :Name of the customer :Address :Current Terminal :Date :Phone Number :1. According to you EDC terminals are convenient for: (A) Convenient for Customers (B) Convenient for businessBabasabpatilfreepptmba.com Page 58
  59. 59. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC (C) Both2. Are you Aware of HDFC’s EDC terminal & service? (A) Yes (B) No3. Are you Aware of HDFC’s tie-up with American Express onterminal sharing? (A) Yes (B) No4. Rank the following in order of Brand equity among EDCservice? (1 for highest Brand equity and 5 for lowest Brand equity) (A) CITI Bank (B) ICICI Bank (C) HDFC Bank (D) HSBC Bank (E) STAN-C5. What are the rates charged by the present terminal you use? (A) < 1.85% (B) 1.85%- 2% (C) > 2%6. Are you satisfied with present rates charged? (A) Yes (B) No7. What was the most important factor for selecting the present bank’s EDC Terminal you use? (A) Pricing (B) Service (C) Approached First (D) Relationship with the bank (E) Other8. What is your Average monthly card turnover (in Rs.)? (A) <25000 (B) 25000 – 50000 (C) 50000- 100000 (D) 100000 – 200000 (E) 200000 – 500000 (F) 500000 –1000000Babasabpatilfreepptmba.com Page 59
  60. 60. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC (G) >10000009. How do you rate the response on redressal of complaintsby the present terminal provider ? (A) Very Fast (B) Fast (C) Slow (D) Very Slow.10. Is the EDC machine regularly serviced by the provider? (A) Yes (B) No11. Does your relationship officer visit you regularly? (A) Yes (B) No12. Are you satisfied with the present service provided by theEDC Terminal provider? (A) Yes (B) No13. Has a HDFC sales person approached you before? (A) Yes (B) No14. Would you buy a HDFC EDC Terminal if you get lower rates? (A) Yes (B) No15. Would you buy a HDFC EDC Terminal if you get more valueadded services? (A) Yes (B) No16. Would you buy a HDFC EDC Terminal if bank branch is nearto you? (A) Yes (B) No17. Would you buy a HDFC EDC Terminal if documentationprocedure is easier ? a. Yes b. NoBabasabpatilfreepptmba.com Page 60
  61. 61. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCBabasabpatilfreepptmba.com Page 61
  62. 62. THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFCBabasabpatilfreepptmba.com Page 62

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