1. Levesque, T and McDougall, G.H.G. (1996), the study investigated the major determinant of customersatisfaction and future behavioral intensions in the retail banking sector. The study identifies thedeterminants that include service quality dimensions (e.g. getting it right the first time), service features(e.g. competitive interest rates), service problems, service recovery and products used. The study finds,in particular, that service problems and the bank’s service recovery ability have a major impact oncustomer satisfaction and intention to switch banks. However, the results do not support the view thatsatisfactory problem recovery leads to greater customer satisfaction or closer ‘bonding’ of the customerwith the provider. At best a satisfaction problem recovery leads to the same level of customersatisfaction as when a problem had not occurred.Levesque, T and McDougall, G.H.G. (1996),, Determinants of Customer Satifaction in retail Banking,Internations Journal of Bank Marketing, Vol.14, No.3, pp. 12-20.Malhotra, M., and Arora, S. (1999). The study investigates that level of customer satisfaction in thepublic sector banks and th3e private, with the purpose of helping bank managements to formulatemarketing strategies to attract customers towards them. The exploratory study was done by collectingdataa from the cities of amritsir, Ludhiana and Chandigarh. Twenty attributes were taken intoconsideration for measuring the level of satisfaction/disatiasfaction. The study found that there are sixfactiors, in order of their improtance are routine operation factor, price factor, situation factor,environmental facotrs, technology factor and interactive facror. Similarly, for customers of private sectorbanks, the foactors found to be important are staff factor, routine operation factor, service factor,environmental facotrs, technology factor, interactive facror and promotional facotr. Moreover, factor wiseaverage scores of these factors reveal that there is significant difference between the satisfaction lvele ofthe customres of public and the private sector banks. The latter are found to be more satisfied. A fewstrategies suggested by the authors to improve service quality are proper training of the staff, conductingmarket surveys periodically, personaliziang the service, avoiding long queues,having well lit, ventilatedand clean surroundings.Malhotra, M., and Arora, S. (1999), Customer Satisfaction – A Comapritive Analysis of Public and PrivateSector banks, Abhigyan, Vol.17, No.3, pp. 19-30.Armstrong Robert W., and Seng T.B. (2000), The study extends the current undrstanding of cuctomersatisfaction at the business –to – business level in the Asian banking industry. It incorporates guanxi(Cuhinese business relationship), relationship marketing and the disconfirmation paradigm. The researchhighlights the importance of relational constructs and disconfirmation paradigm in the influencingcustomer satisfction at the business – to – business level in the Singapore banking industry. At thebusiness – to – business level in the Asian context, the disconfirmation papdigm is still the predominantparadigm influencing the customer satisfaction process. Relationship marketing and guanxi aresignificant in the comprehesive model of corporate customer satisfaction. Relationship marketing isfound to have both a direct and an indirect impact through disconfirmation) on corporate customersatisfaction. Guanxi is found to exert an idirect impact on satisfaction as opposed to the intialhypothesized direct impact on satisfactionon.Armstrong Robert W., and Seng T.B. (2000), “Corporate – Customer Satisfaction in the marketing in theBanking Industry”.
2. Athanassopoulous, A., Gounraris, S. and Stathakopuoulos V. (2001), The paper investigates thebehavioural consequences of customer satisfaction in the banking industry. The authors examinetheimpact of customer satisfaction on customers behavioural responses. The findings indicate that whencustomers assessed customer satisfaction to be high, they either decided to stay whith the existingservice provideror subdue their negative behavioural intensitons. Customer satisfaction is also found tohave strong positive association with word-of mouth communication. The research reuslts confirm priorresearch and indicate that the customer satisfaction dimensions arenot industry specific, but also countryspecific. The authors suggest to develop strategies to enhance behavioral responses to customersatisfaction and prohibit negative ones. Such strategies can include meeting customers desired servicelevels, preventing service problemsfrom occuring, dealing effectively with dissatsfied customers, solvingservice problems effectively when they occure and dealing with customer complaints positively.Athanassopoulous, A., Gounraris, S. and Stathakopuoulos V. (2001), “Behavioral Responses ti CustomeSatisfaction: An Empirical Study”, Eeuropean Journal of Marketing, Vol. 35, No. 5/6, pp. 687 – 707.Sureshchandar G.S., Rajendran C. and Anantharaman R.N. (2002) adopt a different approach and viewcustomer satisfaction as a multi dimensional construct just as service quality, but argues that customersatisfaction should be operationalized along the same factors (and the corresponding items) on whichservice quality is operationalized. Based on this approach, the link between service quality and customersatisfaction has been investigated. The results indicate that the two constructs are indeed independentbut are closely related, implying that an increase in one is likely to lead to an increase in another.Sureshchandar G.S., Rajendran C. and Anantharaman R.N. (2002) Customer perceptions of service qualityin the banking sector of a developing economy: a critical analysis, International Journal of Bank Marketing,Vol. 21 Iss: 5, pp.233 - 242Singh S. (2004) empirically studies the appraisal of customer services of PSBs in terms of level ofcustomer service and satisfaction determined by brand, location and design, variety of services, ratesand changes, systems and procedures etc. The study concludes that staff behavior is very polite andservices are provided even in the late hours. Study reveals that 62 percent respondents answer thatimmediate credit is not given for outstation cheques, 93 percent feel that they do not hold periodicalmeetings and services are not provided according to the given schedules. It concludes that services ofprivate sector banks are better than the services of public sector banks.Singh S. (2004), “An Appraisal of Customer Services of Public Sector Banks, IBA Bulletin, Vol XXVI, No. 8,(aug.), pp. 33-38.Saha P. and Zhao Y. (2005) analyze the relationship between service quality and customer satisfaction ininternet banking and five service quality dimensions are selected. A qualitative research approach isused to get a better understanding of this issue. A small quantitative survey has been also conducted tosupport the results obtained from the qualitative study. Nine service quality dimensions i.e. efficiency,reliability, responsiveness, fulfillment, privacy, communication, personalization, technology update and
3. logistic/technical support are identified in this study. The quality performance of all the nine dimensions isshown to have a strong impact on customer satisfaction.Saha P. and Zhao Y. (2005), Saha P, Zhao Y (2005). Relationship between online service quality andcustomer satisfaction, a study in Internet banking. Retrieved on[April, 2009] from World WideWeb:http://epubl.ltu.se/1404- 5508/2005/083/LTU-SHU-EX-05083 SE.pdfhttp://epubl.ltu.se/1404-5508/2005/083/LTU-SHU-EX-05083-SE.pdf.Consumer Voice (2006) conducted a survey to study the customer satisfaction level of 3100 servingbanks, credit and debit card holders, who are covered during the period September 2005 to November2005. The survey is conducted in eight cities, where the maximum numbers of respondents come fromSBI (17.10 pc) followed by ICICI Bank (8.80 pc) and the maximum surveyed customers belong to the agegroup of 26-34 years. The study reveals that Citibank has the most dissatisfied customers and most ofthe customers are shifting from public sector banks to private sector banks, mainly due to convenientavailability and due to restricted functioning hours of public sector banks. Overall, only 6 pc of therespondents use internet banking and most of them (16.3 pc) are registered with HSBC followed by ICICIBank (12.6 pc). Overall, the study concludes that Standard Chartered Bank, Vijaya Bank and SyndicateBank steal the march, the little known the United Western Bank performs impressively and Citibank is themost over-rated bank.Mishra J.K. and Jain M. (2007) study various dimensions of customer satisfaction in nationalized andprivate sector banks. Two-stage factor analysis is computed to arrive at the dimensions of customersatisfaction. The study analyzes ten factors and five dimensions of customer satisfaction for nationalizedand private sector banks respectively. The study concludes that satisfaction of the customers is aninvaluable asset for the modern organizations, providing unmatched competitive edge, it helps in buildinglong term relationship as well as brand equity. The best approach to customer retention is to deliver highlevel of customer satisfaction that result in, strong customer loyalty.Mishra J.K. and Jain M. (2006-07). ‘Constituent Dimensions of Customer Satisfaction: A Study of Nationalizedand Private Banks ’. Prajnan. 35(4). 390-398.Vimi Jham & Kaleem Mohd Khan, (2008), conducted a study on Customer Satisfaction in the IndianBanking Sector, among five Indian banks, aimed at identifying customer satisfaction variables which leadto relationship building, and developing a conceptual framework of relationship marketing practices inIndian banks by capturing the perspectives of customers with respect to their satisfaction with variousservices. It also sought to identify whether demographics have a role to play in customer satisfaction.The three relationship dimensions, namely, traditional services, multi channel banking and internalmarketing, which lead to customer satisfaction, were identified through factor analysis. A repeatedmeasure of ANOVA was run on the relationship dimensions to assess significant difference in the level ofsatisfaction of the customer. A perceptual map was created using the factor scores of each of the fivebanks which helped identify how each bank was positioned in the customers’ minds.Reporting on the different satisfaction levels of the customers, the findings suggest that while privatebanks have been able to attract the younger customers with higher educational levels, who are
4. comfortable with multi channel banking, the customers of the national bank are older and more satisfiedwith the traditional facilities. The results from this study could provide managerial lessons on assessmentof strengths and improvement of services and in evolving a research strategy that will benefit themanagement of banks.Vimi Jham & Kaleem Mohd Khan, (2008), Customer Satisfaction in the Indian Banking Sector –AStudy, IIMB Management Review, Volume 20, Number 1.Puja Khatri & Yukti Ahuja (2008) have analysed customer satisfaction in public and private secotr banksand revealed that the Indian banking sector has witnessed heightened competition with so many bankscoming up with all their potential and using their global strength to their advantage in order to establishthemselves in the market. Private Banks seem to have satisfied its customers with good services andthey have been successful in retaining its customers by providing better facilities than Public sectorBanks. But, still Private Banks need to go a long way to become customer’s first preference. In aneconomy of innovative technologies and changing markets, each and every service quality variable hasbecome important. New financial products and services have to be continuously introduced in order tostay competent. Success mantra could be customer centric orientation, where the organization buildslong term strategic relationships with its customers and Private sector Banks have been successful inachieving such relationship with customers however public sector banks have to improve in this area.Private Banks need to concentrate more on their credit facilities and insurance services since customersdo not have a very good opinion about these facilities being offered by Private Banks. Public sectorbanks enjoy the trust of the customers, which they have been leveraging to stay in the race however theyneed to improve their service quality by improving their physical facility, infrastructure and giving propersoft skill trainings to their employees. The efforts have to be made in the direction of enhancing the retailbanking experience. That is why a wellperformed service encounter may even vercome the negativeimpression caused by poor technical quality as well as generate positive word-of-mouth, particularly ifcustomers witness that employees have given their best in order to satisfy them during a contingency.Employees are part of the customer service process, which is the key to success for any bank. It is theseencounters with customers during a service that are the most important determinants of overall customersatisfaction, and a customer’s experience with the service will be defined by the brief experience with thefirm’s personnel and the firm’s systems. Any laxity at the end of the employees can lead to customerdefect.Puja Khatri & Yukti Ahuja (2008) , Study of customer satisfaction in public sector and private sector banksof India, Interantional Journal of Engineering and Management Sciences (I.J.E.M.S.), VOL. 1(1):, pp. 42-51.R.K. Uppal (2009) studied customer service and customer satisfaction in Indian commerical banks andconcluded that in the emerging competitive environment and IT era with little or no distinction in theproduct offering, it is speed of rendering service that sets apart one bank from another. Prompt service iseaquated with quality service. Time is a major factor which affects the quality & reputation of the banks.E-banks are providing quick service & that is why they are becoming more popular. Hence, it is veryessential that all bank groups should put in place the right kind of systems to further cut down on servicetime and render instantaneous service to the customers. Only such banks will satisfy the customers’expectations and tend to survive in the rat race for market shares in the days to come.
5. R.K. Uppal (2009, “Customer Service in Indian commercial Banks: An Empirical Study”, Asia PacificJournal of Social Sciences, Vol. I, No. 1, Jan-June 2009. Pp. 127-141.Hazra, Sandip Ghosh,Srivastava, Kailash B L, (2009) studied the Impact of Service Quality on CustomerLoyalty, Commitment and Trust in the Indian Banking Sector. This study examined the strength of theassociation between the independent variable service quality perception and the dependent variables,namely, customer loyalty, commitment and trust. The results showed that customers value fivedimensions of perceived service quality- assurance-empathy, tangibles, security and reliability, withassurance-empathy being valued the most. Banks should pay attention to these dimensions of servicequality and pay more attention to the dimension of assurance-empathy to increase loyalty to a company,willingness to pay, customer commitment and customer trust. Customers clearly expect personalattention and an understanding of their specific needs by the banks. In order to make improvements,managements must strike off the weaknesses and take care by paying individualized attention. Next, theresults regarding the differences in the loyalty to a company, response to problems, willingness to pay,customer commitment and customer trust across banks, showed that there were no significantdifferences in customer trust and response to problems between the public sector and private sectorbanks. A significant difference was observed for loyalty to a company, willingness to pay and customercommitment.The private sector banks showed that enhancements in reliability (a dimension of service quality) makedifferences in customer commitment and willingness to pay, whereas enhancements in security (aservice quality dimension) make differences in loyalty to a company for the public sector banks.By Hazra, Sandip Ghosh,Srivastava, Kailash B L, Impact of Service Quality on Customer Loyalty,Commitment and Trust in the Indian Banking Sector, Published on allbusiness.comKumbhar V. M (2011) attempted to examine a contribution of various dimensions of service quality incustomers’ satisfaction. A result of the study indicates that, all 13 variables were found significant andwere good predictors of overall satisfaction in e-banking. However, A result of principle componentanalysis indicates that, Perceived Value, Brand Perception, Cost Effectiveness, Easy to Use,Convenience, Problem Handling, Security/Assurance and Responsiveness are important factors incustomers satisfaction in e-banking it explains 48.30 per cent of variance. Contact Facilities, SystemAvailability, Fulfillment, Efficiency and Compensation are comparatively less important because thesedimensions explain 21.70 per cent of variance in customers’ satisfaction. Responsiveness, Easy to Use,Cost Effectiveness and Compensation are predictors of brand perception in e-banking and Fulfillment,Efficiency, Security/Assurance, Responsiveness, Convenience, Cost Effectiveness, Problem Handlingand Compensation are predictors of perceived value in e-banking. Therefore, banker and e-bankingservice designers should think over these dimensions and make possible changes in the e-bankingservices according to the customers’ expectations and need of the time. It will be helps to enhanceservice quality of e-banking and increase the level of customers’ satisfaction in ebanking.Kumbhar V. M. FACTORS AFFECTING THE CUSTOMER SATISFACTION IN E-BANKING: SOME EVIDENCES FORM INDIAN BANKS MANAGEMENTRESEARCH AND PRACTICE VOL. 3 ISSUE 4 (2011) PP: 1-14
6. Dr. Naveen Kumar & Dr. V.K.Gangal(2011), held a sutudy on CUSTOMER SATISFACTION IN NEWGENERATION BANKS (A CASE STUDY OF HDFC BANK) and found that the majority of India’s banksare not very diversified in terms of the products and services they offer. One strategic focus that bankscan implement to remain competitive would be to retain as many customers as possible. And customerretention is possible through customer satisfaction only. Thus, customers’ satisfaction is the key ofsuccess in todays’ competitive era.Dr. Naveen Kumar & Dr. V.K.Gangal(2011), held a sutudy on CUSTOMER SATISFACTION IN NEWGENERATION BANKS (A CASE STUDY OF HDFC BANK), International Refereed Research Journal, Vol.– II,Issue –4,Oct. 2011, pp. 177 – 186.M. Mohamed Siddik & Dr. M. Selvachandra (2011), studied customer satisfaction towards E-bankingservices of ICICI bank in Chennai city and concluded that the majority of the respondents preferred theirbranch because of Quality of service. Convenience and popularity of branch were given subsequent preference.There has been quite positive opinion registered with regard to the common problem encountered by the customersin the banks, relating to that there is delay in service in the branches, customers were dissatisfied with the servicerendered by the staffs,and dissatisfied with the delay in loan sanctions, at the outset proportion of the problems arerelatively meager, hence it was illustrated that the there has been very meager problems in the transactions.Therefore they suggested that banks should provide sufficient training programmes to mitigate the above probles.M. Mohamed Siddik & Dr. M. Selvachandra (2011), A Study on Customer Satisfaction towards E-bankingservices of ICICI bank in Chennai City, IJEMR - September 2011-Vol 1 Issue 4VIJAY M. KUMBHAR (2011), FACTORS AFFECTING ON CUSTOMERS’ SATISFACTION: AN EMPIRICALINVESTIGATION OF ATM SERVICE and examined that the cost effectiveness of ATM service were coreservice quality dimension and it was significantly affecting on overall customer satisfaction in ATMservice provided by commercial banks. However, result of factor analysis indicates that costeffectiveness, easy to use and security & responsiveness were also influence customer satisfaction.Therefore,banks should concentrate their efforts onthese dimensions for cater better ATM service tosatisfy their customers.VIJAY M. KUMBHAR (2011), FACTORS AFFECTING ON CUSTOMERS’ SATISFACTION: AN EMPIRICAL INVESTIGATION OF ATMSERVICE, INTERNATIONAL JOURNAL OF BUS INES S ECONOMICS AND MANAGEMENT RESEARCH,Volume 2, Issue 3 (March, 2011), pp. 144 – 156.Ernst and Young survey (2011), more than 20,500 global retail banking customers including 1,000respondents from India, was surveyed. The survey aimed to identify the driving factor of customerrelationships with their banks. Majority of the retail customers of Indian banking sector are satisfied withthe banking system, according the survey. The positive attitude showed by the banks in handling theglobal financial melt-down of 2008, has increased the trust of the people in the banking system of thecountry. As per the survey findings, A New era of Customer Expectation that is yet to be releasedglobally, 75% of the retail banking customers in India said that their trust in the banking industry grew in2010. “Indians have the highest level of trust and satisfaction in their banking industry. The credit crisishas had minimal impact on customer confidence in the Indian banking industry,”
7. Benefited with the conservative banking policies applied by the banking sector regulator Reserve Bank ofIndia, Indian remained relatively untouched by the global financial crisis. The survey also concluded thatIndian banks have lived up to the expectations of majority of their clients as the global financial crisis of2008 had a minimal impact on them compared to their global peers.http://banking.contify.com/story/indian-bank-customers-most-satisfied-with-banking-system-ernst-and-young-survey-2011-04-11.Jyoti Agarwal (2012) studies customer satisfaction in banking services in Aligarh district. She examinedthat the banking sector in India is undergoing major changes due to competition and the advent oftechnology. The customer is looking for better quality services which enhance his/her satisfaction. Thisstudy derives its basis from various research findings and is also in line with empirical findings withrespect to customer satisfaction by other researchers. To sum up, the results of the study lead us to thefollowing conclusion and policy implication: • The customer satisfaction in terms of service quality is a relational marketing paradigm. The relationships are mostly viewed from the perspective of the firm providing services. For service firm in our case the banks, building strong relationship is important for improving customer satisfaction through service quality. • Public sector banks like SBI fall much below the perceptions of their customers on all dimensions of service quality. Private Banks such as ICICI bank are exceeding the perceptions of their customers on all dimensions of service quality. • The above findings suggest the need and relevance of heavy investment on tangibles particularly computer based banking, internet and intranet services, tele-banking, anywhere and anytime banking, etc., besides physical facilities and communication material. This will help in delivering quick and accurate services to customers as well as reducing the workload of frontline staff and thereby providing ways to employees to respond to customer requests. This investment will also ensure convenient banking hours on which the services of our banks are perceived by the customers to be very low. • Customer service must match with marketing efforts, otherwise a customer would remain a dissatisfied soul and all marketing efforts will go down the drain. The process of fulfilling customer needs, therefore, requires tailoring bank services to what customers want, rather than making them accept whatever banks can conveniently provide. Today, customers are exposed to the standards of international banking and expect the same range of service quality from Indian banks. If public sector banks fail to regulate the • quality and efficiency of their financial services to match or surpass those of private banks or foreign banks, time is not far away when they will lose substantial market share to private and foreign banks.
8. • Banks must pay attention to potential failure points and service recovery procedures, which become integral to employees training. In other words, it amounts to empowering employees to exercise responsibility, judgment and creativity in responding to customers problems. • Banks should continually assess and reassess how customers perceive bank services so as to know whether the bank meets or exceeds or is below the expectations of their customers. Such an appraisal, however, is a tedious task because customer service is complex in nature and dynamic in action. Moreover, it can vary greatly from one branch to another. Also, what is good service today may become indifferent service tomorrow and bad service the next day. Frequent customer surveys, therefore, throw light on ratification and refinement which will go a long way to improve the service quality in banks.Jyoti Agarwal (2012), CUSTOMER SATISFACTION IN INDIAN BANKING SERVICES (A STUDY IN ALIGARHDISTRICT) International Journal of Computing and Business Research (IJCBR) ISSN (Online) : 2229-6166Volume 3 Issue 1 January 2012, pp. 1-14.