A Study on“Customer Satisfaction Survey on Banks” Submitted to the School of Management Studies University of Hyderabad In Partial Fulfillment of the Requirement for the Award of the Degree of Master of Business Administration Under the Guidance of Dr. Chetan Srivastava Lecturer, School of Management Studies University of Hyderabad By Ankit Singh 08MBMA12
CERTIFICATEThis is to certify that the project work entitled “Customer SatisfactionSurvey on Banks” has been carried out and submitted by Mr. Ankit Singhunder my guidance in partial fulfillment of his Masters Of BusinessAdministration at SCHOOL OF MANAGEMENT STUDIES,UNIVERSITY of HYDERABAD.Date: 21/04/09 Dr. Chetan Srivastava Assistant Professor School Of Management Studies University Of Hyderabad
DECLARATIONThis to declare that the project title “Customer Satisfaction Survey on Banks” isan authentic record of my original work carried out under the guidance of Dr.Chetan Srivastava, Assistant Professor in Marketing, School of ManagementStudies, University of Hyderabad. The project work has been carried out solely for the purpose of submissionin partial fulfillment of Master of Business Administration at School ofManagement Studies, University of Hyderabad. I further declare that I have not submitted this document to any other School,University, or Institution in whatever manner.Date - Ankit Singh 08MBMA12
ACKNOWLEDGEMENTSFirst of all I express my gratitude to my project guide Dr. Chetan Srivastava,Assistant Professor, School of Management Studies, University of Hyderabad. Hisable guidance at each step of the project helped me to broaden my outlook on theproject and in successful completion of the project. I shall always remember hispolite 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 forgiving me this opportunity for doing this project. I specially thank all the faculty members of the School of ManagementStudies 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 beeninstrumental in successful completion of this project work. Finally, I would like to thank my Parents, Family, Friends, Colleagues andGod Almighty for their unending inspiration and encouragement.
ACKNOWLEDGEMENTS First of all I express my gratitude to my project guide Dr. ChetanSrivastava, Assistant Professor, School of Management Studies, University ofHyderabad. His able guidance at each step of the project helped me to broaden myoutlook on the project and in successful completion of the project. I shall alwaysremember his polite way of correction and constant encouragement by askingvarious questions. I convey my regards and special thanks to Dr. V. Venkata Ramana,Professor and Dean, School of Management Studies, University of Hyderabad forgiving me this opportunity for doing this project. I specially thank all the faculty members of the School of ManagementStudies 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 beeninstrumental in successful completion of this project work. Finally, I would like to thank my Parents, Family, Friends, Colleagues andGod Almighty for their unending inspiration and encouragement.
1. Executive Summary The report contains the brief description of the Banking Industry in India. It contains the findings and analysis of the survey conducted to gather primary data to judge the importance of various attributes that influence the satisfaction of customers in different manner and to the different extent. These attributes are classified as Initial Experience, Service Delivery Experience, Service Experience, Relationship Experience, and Grievance Handling. Further an attempt has been made to know the overall satisfaction of the customers. The attempt has also been made to categorize investors based on various demographic factors such as age, income, etc. and to present a comparative analysis of the various demographic factors. The size of the sample is limited to 120 only. More than 50 % of the respondents are using fixed deposits and saving bank account services of the banks. The highest number of respondents belongs to State Bank of India Group followed by ICICI Bank, Andhra Bank, HDFC Bank and Bank of Baroda Respectively. More than 40% of the respondents are the customers of the bank from more than 10 years. Nearness to bank is the most important factor affecting the choice of more than 30% followed by reputation of the bank which holds more than 25% of the share. The data relating to customer satisfaction is analyzed using Analysis of Variance. The analysis shows that customers give equal importance to all the attributes under each classification to rank their satisfaction. The attributes under each category are ranked according to their Weighted Average Mean. In terms of Initial Experience, Quality of response to customer queries is considered most important to judge the customer satisfaction and ICICI bank is at the top on this criteria. In terms of Service Delivery Experience, Timeliness of service delivery is ranked most important and SBI is at the top. In terms of Service Experience, Level of need fulfillment vis-à-vis expected is considered most important and SBI is again at the top. In terms of Relationship Experience, Frequency and quality of contact is considered most important and HDFC bank is leading the other banks. Finally in terms of Grievance Handling, Quality of complaint resolution is considered to be most important and SBI is again leading in on this criteria.
2. Table of Contents Certificate Declaration Acknowledgements1. Executive Summary 12. Table of Contents 23. History of Indian Banking Industry 8-94. Background and Need for Study 105. Statement of Problem 10-116. Objective of Study 127. Testable Hypothesis 138. Limitations of Study 139. Theoretical Framework 1410. Literature Review 15-2211. Research Methodology (a) Designing of Questionnaire 23-24 (b) Duration of Study 24 (c) Sample Selection 2412. Data Collection and Analysis 24-3513.Findings of the Study 64-6514.Suggestions 66-6715.Bibliography and References 6816.Annexure I-II 69-72
3. HISTORY OF THE INDIAN BANKING INDUSTRYThe first bank in India, though conservative, was established in 1786. From 1786 till today, thejourney of Indian Banking System can be segregated into three distinct phases. They are asmentioned below-First Phase – The General Bank of India was set up in the year 1786. The East India Companyestablished Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) asindependent units and called it Presidency Banks. These three banks were amalgamated in 1920and Imperial Bank of India was established which started as private shareholders banks, mostlyEuropeans. In 1865 Allahabad Bank was established and first time exclusively by Indians. ThenPunjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, andBank 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 periodicfailures between 1913 and 1948. There were approximately 1100 banks, mostly small. Tostreamline the functioning and activities of commercial banks, the Government of India came upwith The Banking Companies Act, 1949 which was later changed to Banking Regulation Act1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested withextensive 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 scaleespecially in rural and semi-urban areas. It formed State Bank of india to act as the principalagent of RBI and to handle banking transactions of the Union and State Governments all over thecountry. Before the steps of nationalisation of Indian banks, only State Bank of India (SBI) wasnationalised. It took place in July 1955 under the SBI Act of 1955. Nationalisation of Seven StateBanks of India (formed subsidiary) took place on 19th July, 1960.
In 1969, major process of nationalisation was carried out. 14 major commercial banks inthe country were nationalised. Second phase of nationalisation Indian Banking Sector Reformwas carried out in 1980. Seven more banks were nationalised with deposits over 200 crores. Thisstep 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 itsreforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set upby his name which worked for the liberalisation of banking practices. The country is floodedwith foreign banks and their ATM stations. Efforts are being put to give a satisfactory service tocustomers. Phone banking and net banking is introduced. The entire system became moreconvenient 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 croresPublic 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 ofIndore, State Bank of Mysore, State Bank of Patiala, State Bank of Saurashtra, State Bank ofTravancore, Andhra Bank, Allahabad Bank, Bank of Baroda, Bank of India , Bank ofMaharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank,Indian Overseas Bank, Indian Bank, Oriental Bank of Commerce, Punjab National Bank, Punjaband Sind Bank, Syndicate Bank, Union Bank of India, United Bank of IndiaUCO Bank, and Vijaya Bank.
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 LtdGlobal Trust Bank Ltd, HDFC Bank Ltd, Centurion Bank Ltd, Bank of Punjab LtdIDBI 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 ofTokyo Ltd, Banquc Nationale de Paris, Barclays Bank Plc, Citi Bank NC, Deutsche Bank AG,Hongkong and Shanghai Banking Corporation, Standard Chartered Bank, The Chase ManhattanBank Ltd, Dresdner Bank AG.
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.
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 themarketer’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 thecustomer 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 public sector banks.
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 which may affect the study to a little extent.
9. THEORETICAL FRAMEWORK- According to Philip Kotler, “satisfaction is a person’s feelings of pressure ordisappointment resulting from product’s perceived performance (outcome) in relation tohis or her expectations. Customer satisfaction is the level of a person’s felt state resultingfrom comparing a product’s perceived performance (outcome) in relation to the person’sexpectations”. This satisfaction level is a function of difference between perceived performance andexpectations. If the product’s performance, exceed expectation the customer highly satisfied ordelighted. If the performance matches the expectations the customer is satisfied. If the productsperformance fall shorts of expectations the customer is dissatisfied. Many companies are aiming for high satisfaction because customers who are just satisfiedstill find it easy to switch when a better offer comes along. High satisfaction or delight creates anemotional affinity with brand. Variety of factors that affect customer satisfaction includes product quality, productavailability and after sales support such as warranties and services. Customer satisfaction is seenas a proof of delivering a quality product or service. It is believed that customer satisfactionbrings sales growth, and market share. A company can always increase customer satisfaction bylowering its price or increasing its services but this may result in lower profits. Thus the purposeof marketing is to generate customer value profitability. The two major factors of marketing arethe recruitment of new customers (acquisition) and the retention and expansion of relationshipswith existing customers (base management). All this is possible only when the customers aresatisfied 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 who have switched to another supplier to learn why this happened.
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. Kucukemiroglus (1992) study of the Hong Kong banking market discovered that customers choose their banks because of convenience, long association, recommendations of friends and relatives, and accessibility to credit.
11. RESEARCH METHODOLOGY (a) Designing of Questionnaire- To understand the savings preference, bank preference, services taken, time period since becoming customer, and to identify the information sources influencing bank selection, a questionnaire (ANNEXURE I) was designed and the respondents were asked to mark their preferences on a ranking scale. The questionnaire also contains 19 factors that affect the customer satisfaction. These factors are divided into 5 major groups – Initial Experience, Service Delivery Experience, Service Experience, Relationship Experience and Grievance Handling. Also the customers were asked to rate their overall satisfaction on a 5 point scale ranging from Highly Satisfied (1) to not at all Satisfied (5). These factors are as follows- (A) Initial 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
(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 fromJanuary 2010 to March 2010.(c) Sample Selection- The survey is conducted on 120 persons out of whom 37 respondents arethe customers of SBI, 21 of ICICI, 13 of Andhra Bank, 12 of HDFC Bank, 17 of Bank ofBaroda, 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 effectiveresults. The survey was conducted in certain areas of Hyderabad.12. Data Collection and Analysis- The report is based on primary data only. Primary data wascollected through the above designed Questionnaire using telephone calls, e-mails and alsopersonally 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-
INVESTOR PROFILE INVESTOR PROFILE NO. OF RESPONDENTSSEX Male 83 Female 37AGE Below 30 25 30-40 42 40-50 32 50 and above 21OCCUPATION Salaried 68 Businessman/Professional 35 Housewives 21ANNUAL INCOME Below 2,00,000 31 2,00,000-3,00,000 46 3,00,000-4,00,000 23 Above 4,00,000 20PRODUCTS Fixed Deposits 27 Saving Account 42 Current Account 35 Other 16BANKS State Bank Group 37 ICICI Bank 21 Andhra Bank 13 HDFC Bank 12 Bank of Baroda 18 Other Banks 19RELATIONSHIP WITH BANK Less than 3 Year 21 3-5 Years 25 5-10 Years 23 More Than 10 Years 51FACTORS AFFECTING CHOICE Ownership/ Reputation 31 Nearness/Accessibility 42 Commercials 24 Friends/Family 23
A. INITIAL EXPERIENCE- NO OF RANKING ATTRIBUTES RESPONDENTS (Based on Weighted Average) 1 2 3 4 5Level of product Quality of response to 42 32 24 14 8 OneKnowledge of bank staff customer queries Understanding ofQuality of response to 50 34 22 12 2 Two customer’s needs andcustomer queries unique perspectiveUnderstanding of Presentation,customer’s needs and 48 40 18 6 8 Three Communication andunique perspective Mannerism of staffAvailability and quality of Level of product 26 32 20 24 18 Fourbrochures, sales material Knowledge of bank staffPresentation, Availability and quality ofCommunication and 38 40 32 8 2 Five brochures, sales materialMannerism of staff Anova: Single Factor SUMMARY 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 The F Value is much less than the critical or table value which shows that customersconsider all the attributes as important while rating their satisfaction. Therefore the hypothesisthat customers consider all the attributes important while rating their satisfaction stands accepted.The difference in the sample is due to random sampling error.
RANK OF BANK ATTRIBUTES 1 2 3 4 5Level of product ICICI HDFC SBI BOB ANDHRAKnowledge of bank staffQuality of response to ICICI HDFC ANDHRA SBI BOBcustomer queriesUnderstanding ofcustomer’s needs and ICICI SBI ANDHRA HDFC BOBunique perspectiveAvailability and quality of HDFC ICICI SBI BOB ANDHRAbrochures, sales materialPresentation,Communication and ICICI ANDHRA ANDHRA BOB SBIMannerism of staffThe above table ranks the banks in the sample on the basis of the data obtained from theircustomers. In terms of Level of product Knowledge of bank staff, quality of response tocustomer queries, understanding of customer’s needs and unique perspective, Presentation,Communication and Mannerism of staff the ICICI bank ranks higher. In terms of Availabilityand 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 thecustomers when compared with the public sector banks.
B. SERVICE DELIVERY EXPERIENCE- NO OF RANKING ATTRIBUTES RESPONDENTS (Based on Weighted Average) 1 2 3 4 5Timeliness of service Timeliness of service 64 42 10 4 0 Onedelivery deliverySharing of status while Sharing of status while 58 28 20 12 2 Twowork-in-progress work-in-progressQuality and sophistication Behavior and mannerism 30 24 42 18 6 Threeof delivery of delivery staff Level of congruenceBehavior and mannerism between time taken to 57 29 14 16 4 Fourof delivery staff deliver the services and stipulated timeLevel of congruencebetween time taken to Quality and sophistication 44 36 22 10 10 Fivedeliver the services and of deliverystipulated time Anova: Single Factor 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 The F Value is much less than the critical or table value which shows that customersconsider all the attributes as important while rating their satisfaction. Therefore the hypothesisthat customers consider all the attributes important while rating their satisfaction stands accepted.The difference in the sample is due to random sampling error.
RANK OF BANK ATTRIBUTES 1 2 3 4 5Timeliness of service SBI HDFC ICICI ANDHRA BOBdeliverySharing of status while BOB ANDHRA SBI ICICI HDFCwork-in-progressQuality and sophistication SBI BOB ICICI ANDHRA HDFCof deliveryBehavior and mannerism ICICI HDFC ANDHRA SBI BOBof delivery staffLevel of congruencebetween time taken to ANDHRA ICICI HDFC SBI BOBdeliver the services andstipulated timeThe above table ranks the banks in the sample on the basis of the data obtained from theircustomers. In terms of timeliness of the service delivery and quality and sophistication ofdelivery the State Bank of India is at the top. In terms of behavior and mannerism the ICICI bankis leading the others. Bank of Baroda is at the highest level in terms of sharing the status ofservice with the customers. Looking at Level of congruence between time taken to deliver theservices and stipulated time the Andhra Bank is at the top.
C. SERVICE EXPERIENCE- NO OF RANKING ATTRIBUTES RESPONDENTS (Based on Weighted Average) 1 2 3 4 5Level of service quality Level of need fulfillment 26 10 22 34 28 Onevis-à-vis expectation vis-à-vis expectedLevel of need fulfillment Level of service quality 64 36 14 4 2 Twovis-à-vis expected vis-à-vis expectation Anova: Single Factor 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 The F Value is much less than the critical or table value which shows that customersconsider all the attributes as important while rating their satisfaction. Therefore the hypothesisthat customers consider all the attributes important while rating their satisfaction stands accepted.The difference in the sample is due to random sampling error. RANK OF BANK ATTRIBUTES 1 2 3 4 5Level of service quality ICICI SBI HDFC ANDHRA BOBvis-à-vis expectationLevel of need fulfillment SBI ICICI ANDHRA BOB HDFCvis-à-vis expectedThe above table shows that in terms of expected versus actual quality ICICI bank is able tosatisfy the customers the most whereas the State Bank of India is able to fulfill the expectedneeds of the customers in a better manner.
D. RELATIONSHIP EXPERIENCE- NO OF RANKING ATTRIBUTES RESPONDENTS (Based on Weighted Average) 1 2 3 4 5Frequency and quality of Frequency and quality of 58 28 14 16 4 Onecontact contactKnowledge of company Knowledge of companyproducts and customer 42 38 22 12 8 Two products and customeropportunities opportunitiesConduct and Conduct andCommunication of 24 28 18 28 22 Three Communication ofrelationship person relationship person Anova: Single Factor 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 The F Value is much less than the critical or table value which shows that customersconsider all the attributes as important while rating their satisfaction. Therefore the hypothesisthat customers consider all the attributes important while rating their satisfaction stands accepted.The difference in the sample is due to random sampling error.
RANK OF BANK ATTRIBUTES 1 2 3 4 5Frequency and quality of HDFC ICICI ANDHRA BOB SBIcontactKnowledge of companyproducts and customer ICICI SBI HDFC BOB ANDHRAopportunitiesConduct andCommunication of ICICI BOB SBI ANDHRA HDFCrelationship personThe above table ranks the banks in the sample on the basis of the data obtained from theircustomers. In terms of frequency and quality of contact the HDFC bank is at the top. In terms ofknowledge of the company products and conduct and communication of the relationship personthe ICICI bank is leading the others.This again shows that private sector banks are able to give a good relationship experience to theircustomers as compared to the public sector banks.
E. GRIEVANCE HANDLING- NO OF RANKING ATTRIBUTES RESPONDENTS (Based on Weighted Average) 1 2 3 4 5Timeliness of complaint Quality of complaint 30 24 42 18 6 Oneresolution resolutionQuality of complaint Level of iterations till the 56 30 14 16 4 Tworesolution complaint was resolved Knowledge and empathyLevel of iterations till the 44 36 22 11 9 Three of the customer servicingcomplaint was resolved staffKnowledge and empathy Timeliness of complaintof the customer servicing 24 28 18 28 22 Four resolutionstaff Anova: Single Factor 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 The F Value is much less than the critical or table value which shows that customersconsider all the attributes as important while rating their satisfaction. Therefore the hypothesisthat customers consider all the attributes important while rating their satisfaction stands accepted.The difference in the sample is due to random sampling error.
RANK OF BANK ATTRIBUTES 1 2 3 4 5Timeliness of complaint ICICI SBI HDFC ANDHRA BOBresolutionQuality of complaint SBI BOB ANDHRA ICICI HDFCresolutionLevel of iterations till the ICICI HDFC SBI BOB ANDHRAcomplaint was resolvedKnowledge and empathyof the customer servicing ICICI HDFC BOB SBI ANDHRAstaffThe above table ranks the banks in the sample on the basis of the data obtained from theircustomers. In terms of timeliness of the complaint resolution, level of iterations till the complaintis resolved and knowledge and empathy of the customer servicing staff the ICICI bank ranks thehighest. In terms of quality of complaint resolution the State bank of India rank the highest. F. OVERALL SATISFACTION- In terms of overall satisfaction the ICICI bank is rated the highest by the customers followed by State bank of India, HDFC bank, Bank of Baroda and at the last Andhra Bank.
Annexure - I Questionnaire for Study1. 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 [ ] Other6. Which environmental forces influenced you the most to select your bank? [ ] Ownership/Reputation [ ] Nearness [ ] Commercials [ ] Friends/Family
GIVE MARKS OUT OF 5 TO EACH OF THE FOLLOWING ATTRIBUTES BASED ONYOUR SATISFACTION FROM SERVICES OF THE BANKS-Give: 1 for Highly SatisfiedGive: 2 for SatisfiedGive: 3 for Moderately Satisfied / UnmarkedGive: 4 for DissatisfiedGive: 5 for Not at all SatisfiedPlease Refer Example- Grade Service Quality 4 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
SERVICE EXPERIENCE 1. Level of service quality vis-à-vis expectation. 2. Level of need fulfillment vis-à-vis expected RELATIONSHIP EXPERIENCE 1. Frequency and quality of contact 2. Knowledge of company products and customer opportunities 3. Conduct and Communication of relationship person GRIEVANCE HANDLING 1. Timeliness of complaint resolution 2. Quality of complaint resolution 3. Level of iterations till the complaint was resolved 4. Knowledge and empathy of the customer servicing staff OVERALL SATISFACTION-