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  • 1. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 1 THE BUSINESS SCHOOL COURSE: MBA (208) SUBJECT: ADVANCED RESEARCH METHODOLOGY TOPIC: “PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK” SUBMITTED TO: SUBMITTED BY: DR. VINAY CHAUHAN SHWETANSHU GUPTA (49) SIDHARTH GUPTA (50) SHIVANI GUPTA (46) SUSHANT GUPTA (47)
  • 2. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 2 DECLARATION We undersigned hereby declare that this report entitled “ENTREPRENEURIAL INTENTIONS ON THE BASIS OF DEMOGRAPHICS” conducted under the supervision of The Business School), Jammu University. The empiricalDr.Vinay Chauhan, Faculty ( findings in this report are based on the data collected by us and we will claim no right to own or change or transform or publish this data as it stands the personal property of the institute. The work is humbly submitted to The Business School, Jammu University for purely academic purpose. SHWETANSHU GUPTA (49) SIDHARTH GUPTA (50) SHIVANI GUPTA (46) SUSHANT GUPTA (47)
  • 3. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 3 ACKNOWLEDGEMENT Completing a task is never one man’s effort. It is often the result of invaluable contribution of number of individuals. Acknowledging anyone in mere words is very difficult job. My first and foremost thanks and obeisance to the supreme divine who ameliorated us with relentless grace bestowed upon us all the time. We owe immense heartfelt gratitude to our Prof. Dr. Vinay Chauhan to whom we are deeply indebted for his valuable guidance, help, patience and encouragement without which this work would have never come to fruition. We are equally thankful to our parents for their unequivocal support throughout, as always, for which our mere expressions of thanks likewise doesn‟t suffice. We would like to express our sincere thanks to our seniors and friends for their generous cooperation and friendly support and especially to Ms Shipra Gupta, Ph.D. Scholar, Commerce department, University of Jammu. Further, we would like to thank each and every one who provided a sort of camaraderie and help during our research work.
  • 4. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 4 LIST OF CONTENTS S.NO CONTENTS PAGE.NO 1 ABSTRACT 7 2 INTRODUCTION TO JK BANK 8 3 PERCEPTION AND CUSTOMER SATISFACTION 24 4 REVIEW OF LITERATURE & RESEARCH METHODOLOGY 30 5 DATA ANALYSIS & INTERPRETATION 40 6 SUGGESTIONS AND RECOMMENDATIONS 49 7 LIMITATIONS OF RESEARCH 50 8 FUTURE SCOPE 51 8 QUESTIONNAIRE 52 9 REFERENCES 56
  • 5. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 5 LIST OF TABLES SNO NAME OF TABLE PAGE NO. 1 PROFILE OF RESPONDENTS 41 2 HYPOTHESES OF STUDY 42 3 CORRELATION COEFFICIENT RELATIONSHIP BETWEEN RELIABILITY AND PERCEPTION OF CUSTOMERS TOWARDS PRODUCTS AND SERVICES OF J&K BANK 43 4 CORRELATION COEFFICIENT RELATIONSHIP BETWEEN RELIABILITY AND PERCEPTION OF CUSTOMERS TOWARDS PRODUCTS AND SERVICES OF J&K BANK 44 5 CORRELATION COEFFICIENT RELATIONSHIP BETWEEN ASSURANCE AND PERCEPTION OF CUSTOMERS TOWARDS PRODUCTS AND SERVICES OF J&K BANK 45 6 CORRELATION COEFFICIENT RELATIONSHIP BETWEEN COMPLIANCE AND PERCEPTION OF CUSTOMERS TOWARDS PRODUCTS AND SERVICES OF J&K BANK 46 7 OUTPUTS FROM T-TEST 47 8 OUTPUTS FROM T-TEST 48
  • 6. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 6 LIST OF FIGURES SNO NAME OF TABLE PAGE NO. 1 ORGANIZATION OF STRUCTURE 23 2 RELATION BETWEEN SERVICE QUALITY AND PERCEPTION 27 3 HYPOTHESES RESEARCH MODEL 31
  • 7. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 7 ABSTRACT The banking sector in India has always been considered as a premiere service sector. It has gone through various reforms in the last couple of decades. Constant efforts have been made to better the services and their quality delivered to the customers. Customers also have left the traditional ways of banking. The essence of banking has moved far above from just keeping safe the money. The heightened competition and versatility in the services provided by banks has made both the corporate and the retail clients to become more choice-based and product-oriented towards the banks. It has led customers to turn less ‗loyal„towards a particular bank. This paper tries to analyze customer satisfaction in the Indian banking sector towards the various services offered to them. A case study of Jammu & Kashmir Bank (J&K Bank) was undertaken to analyze various dimensions of services and its impact on the customer satisfaction. A questionnaire was devised to get responses from customers of the bank for their loyalty about the services of the bank and the chances of their defection. KEYWORDS: CUSTOMER SATISFACTION, PERCEPTION, J&K BANK, SERVICES,
  • 8. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 8 Chapter I Introduction to J and K bank
  • 9. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 9 BREIF HISTORY OF J&K BANK The Jammu and Kashmir Bank was founded on October 1, 1938 under letters patent issued by the Maharaja of Jammu and Kashmir, Hari Singh. The Maharaja invited eminent Kashmiri investors to become founding directors and shareholders of the bank, the most notable of which were Abdul Aziz Mantoo, Pesten Gee and the Bhaghat Family, all of whom acquired major shareholdings. The Bank commenced business on July 4, 1939 and was considered the first of its nature and composition as a State owned bank in the country. The Bank was established as a semi-State Bank with participation in capital by State and the public under the control of State Government. In 1971, the Bank acquired the status of a scheduled bank and was declared as an A-Class bank by the Reserve Bank of India in 1976.The bank had to face serious problems at the time of independence when out of its total of ten branches two branches of Muzaffarabad, Rawalakot and Mirpur fell to the other side of the line of control (now Pakistan- administered Kashmir) along with cash and other assets. Following the extension of Central laws to the state of Jammu & Kashmir, the bank was defined as a government company as per the provisions of Indian companies act 1956. Mushtaq Ahmed is the new Chairman and CEO of Jammu & Kashmir Bank. However the State Govt. came to its rescue with the assistance of Rs6.00 Lacks to meet the claims thereafter, the bank overcame its difficulties and kept growing. Following the extension of Central laws to the state of Jammu & Kashmir, the bank was defined as a govt. company as per the provisions of Indian Companies Act 1956. The bank had its first full time chairman in 1971, following social Central measures in banks .The year 1971 was a turning point for the bank on conferment of scheduled bank status and witnessed remarkable progress in all the vital fields of operations. The bank was declared as "A" Class Bank by Reserve Bank of India in 1976. In recognition of dominant role and exalted performance, Reserve bank of India appointed the bank as its agent for performing the general banking business of the Central Govt. especially in maintaining currency chests and collection of taxes.
  • 10. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 10 UNIQUE CHARACTERISTICS & SERVICES J&K Bank carries out banking business of the Central Government. Inspite of a government equity holding of 53 per cent, Jammu & Kashmir Bank (J&K Bank) is regarded as a private sector bank .J&K Bank is the one and only banker and lender of last resort to the Government of J&K. Plan and non-plan funds, taxes and non-tax revenues are routed through the J&K Bank J&K Bank claims the distinction of being the only private sector bank that has been designated as agent of RBI for banking The services of J&K Bank are utilized for the purposes of disbursing the salaries of Government officials. J&K Bank collects taxes pertaining to Central Board of Direct Taxes, in Jammu & Kashmir. Unique features that differentiate J&K Bank depository from other broking firms are as follows:- 3-in-1 Account which integrates J&K Bank demat account J&K Bank savings account Online investment account (Trading Account)  Convenience The 3-in-1 account integrates banking, broking and demat accounts. When customers place buy or sell order with J&K Bank depository, the system checks the funds and shares available in their bank and demat account respectively and executes the trade on the exchange online. The bank account and the demat account is automatically debited or credited. This enables DEMAT ACCOUNT BANK ACCOUNT TRADING ACCOUNT
  • 11. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 11 customers to trade in shares without going through the hassles of tracking settlement cycles, writing cheques and Transfer Instructions, chasing his/her broker for cheques or Transfer Instructions etc.  Speed Customers can get the latest quotes of scripts and this enables them to place an order immediately.  Control Customer gets an order confirmation instantly. This ensures that one has indeed placed an order at the price one wanted to. Thus, one has complete control over his order. VISION OF THE BANK The Bank's vision is “To catalyze economic transformation and capitalize on growth”. The bank aspires to make Jammu and Kashmir the most prosperous state in the country, by helping create a new financial architecture for the J&K economy, at the center of which will be the J&K Bank. The Bank is committed to achieve healthy growth in profitability and simultaneously to remain consistent with the Bank's risk appetite and at the same time ensuring the highest levels of ethical standards, professional integrity and regulatory compliance. MISSION OF THE BANK The company‟s mission is two-fold: To provide the people of J&K international quality financial services and solutions and to be a super-specialist bank in the rest of the country. The two together will make it the most profitable bank in the country. PHILOSOPHY: The Bank‟s Corporate Governance philosophy is woven around its total commitment to the ethical practices in the conduct of its business, while striving in the constant quest to grow with profits and enhance shareholders value and align the interests of the Stakeholders and Society through adoption of best international practices and standards. The Corporate Governance policies of your Bank recognize the accountability of the Board vis-à-vis its various constituents
  • 12. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 12 including customers, shareholders, investors, employees, Government and regulatory authorities and societal responsibilities as a corporate citizen. J&K Bank is committed to the best and transparent corporate governance practices. It believes that proper corporate governance practices leads to effective management and control of business, which in turn provides best value to all its stakeholders through highly motivated personnel, visionary leadership, respect for people and society, innovation and sound fiscal discipline. Your Directors have immense pleasure in presenting the 67th Annual Report on the business and operations of your Bank together with the audited accounts for the year ended March 31.2011, RECOGNITION AND AWARDS The Bank won the prestigious Asian Banking Award – 2005 for its „Development Project Financing Programme, contributing significantly to the development of tourism industry of the J&K State. The award was presented by the Under Secretary Finance, Philippines, at a glittering Gala Dinner award function held at Manila, Philippines on June 17, 2005. The annual Asian banking awards recognize and honor Asian banks for outstanding, innovative and world-class products and programs implemented during the previous year. It is the most respected and premier banking awards program in Asia Pacific region. It is worth mentioning that the Bank has won the Asian Banking Award consecutively for the two years. Before this, the Bank had won the award for Customer Convenience Programmes and was also given runners up certificate for its project „Motivating Employees for Better Performance' under „Operational Efficiency Programme' category. The Bank was ranked fifth among the top ten Asian banks and 762nd among top 1000 World banks. A renowned business journal "Business Today” ranked JK Bank among 25 top investor friendly companies in India, the only bank in the whole Indian Banking industry, which has been ranked in the magazine among first 10 Investor Friendly Companies. The Bank for the second consecutive year was ranked Best Private Sector Bank in Financial Express/ Ernest and Young combined Survey for the year 2002-03 released recently. Bank was awarded „Shiromani Award' for outstanding achievements in the field of banking and commitment to national progress and human welfare during the year under report. The Bank has figured among 24 Indian companies in Forbes Global - 100 best „under a billion Asia's Rising
  • 13. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 13 Companies', listed by Forbes magazine in its issue dated November 01 2006. The publication has commended J&K Bank for representing economic dynamism in the region, sustained growth in all spheres and an excellent track record of rewarding its shareholders. BANKS NEW IDENTITY The new identity of the J&K Bank is a visual representation of the Bank‟s philosophy and business strategy. The three colored squares represent the three regions of the state viz, Jammu, Kashmir and Ladakh. The counter-form created by the interaction of the squares is a falcon with outstretched wings – a symbol of power, speed and empowerment. The synergy between the three regions propels the bank towards new horizons. Green signifies growth and renewal, blue conveys stability and unity, and red represents energy and power. All these attributes are integrated and assimilated in the white counter-form. SUPPORT SERVICES Technology application has remained the thrust area of the Bank for last many years with an objective to offer state of the art world class Banking facilities to its customers. The Bank continued to leverage information technology as a strategic tool for its business operations, to gain competitive edge in customer service as well as improving productivity and efficiency. The Bank‟s IT strategy emphasizes enhanced level of customer services through 24x7 availability, multi-channel Banking and cost efficiency through optimal use of electronic channels, wider market reach and opportunities for cross-selling. The Bank‟s focus is on harnessing technology for integrating diverse products and services. Keeping this in view, the Bank continued to widen the scope of multiple delivery channels such as ATM installations, Anywhere Banking, Internet Banking and SMS Banking at more & more centres. Anywhere Banking Features
  • 14. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 14  Power to Access to your accounts across our branch network.  The facilities include Cash Deposit/Withdrawal and transfer.  Outstation Cheque collection. Internet Banking/Features  Available for both Retail and Corporate users.  SMS Banking  Statement of Accounts.  Funds Transfer.  Submit the filled form at your branch for creation of your Internet banking user Corporate/Retail Internet Banking Both corporate and retail clients can access their accounts anytime and from any location via the World Wide Web. Presently following services are available to the corporate clients: Access/view of accounts  Transfer of Funds between self linked accounts maintained with our bank.  Transfer of Funds from their own accounts to external accounts (e.g. Vendor payment)  Transfer of Funds from external to own accounts (e.g. dealer collection).  Transfers of Bulk upload.  Transfer to non J & K Bank account holders through RBI NEFT/RTGS.  Transfer of non-standard bills.  Utility bill payments. Ecommerce facility for JK Bank Ebanking customers  J & K Bank Secure Payment Gateway, to provide ecommerce facility to the ebanking customers.  Tie up with M/S Avenues India Pvt. Ltd. (Ccavenue) and M/S BillDesk, for extending ecommerce facility to the ebanking customers.  The facility shall be available to only such ebanking users, which have been enabled by the Bank for Bill Payment facility.  ebanking users intending to purchase goods online through the Ccavenue shopping site shall be required to:
  • 15. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 15  Logon to the Master Merchant‟s (M/S Avenues India Pvt. Ltd.) website http://world.ccavenue.com/content/clients.jsp.,  Select the item to be purchased  Select ebanking as the mode of payment.  Select the J & K Bank and the system will take the user to the J & K Bank‟s ebanking site prompting him to enter his ebanking user-id and password.  After entering the Bank‟s ebanking site the customer will be able to pay the amount of bill by debit to its own account.  M/S BillDesk - is a useful service that provides customers a single point of contact for all your payment needs. Our customer can pay bills and make other payments online. Instead of writing a cheque each time, now our customers can use any device connected to the Internet (computer, kiosk, etc) and make payments with the click of a mouse. In effect, through BillDesk customers can now make All Payments at a Single Location. e-Payment of Tax for  JK Bank Ebanking customers  NSDL (National Securities Depository Ltd.), the first and largest depository in India, established in August 1996 and promoted by institutions of national stature responsible for economic development of the country has since established a national infrastructure of international standards that handles most of the securities held and settled in dematerialised form in the Indian capital market.  Tax Information Network (TIN), a repository of nationwide tax related information, has been established by National Securities Depository Limited on behalf of Income Tax Department of India (ITD).  Although India had a vibrant capital market which is more than a century old, the paper-based settlement of trades caused substantial problems like bad delivery and delayed transfer of title till recently.  e-Payment facilitates payment of direct taxes online by taxpayers. To avail of this facility the taxpayer is required to have a net-banking account with any of the banks certified by NSDL,CBDT and RBI for collection of Direct TAX. J&K Bank has been added to the list.Also, e-payment of Indirect Tax for J&K State Govt. has been added to our services. SMS Banking  Be in touch with your account on the move Features
  • 16. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 16  Balance Enquiry  Transaction enquiry  Cheque Status Enquiry ATM Services Features  A network of more than 325 ATMs deployed across the country.  Accepting Maestro / Cirrus / Mastercard / VISA / NFS atm / debit / credit cards. Debit Cards Features  Pin Based -Maestro / Cirrus Debit Card  Provides online access to savings or current account.  Accepted at all Domestic as Well as International MasterCard™, Maestro™, Cirrus™ Enabled ATM's and Point Of Sale locations.  Accepted at National Financial Switch (NFS) ATM's.  No Transaction Fee at JK Bank ATM's  No Transaction Fee on purchases Credit Cards Features  20-50 day Credit Free Period  Revolving Credit Facility on paying of minimum payment due in the same billing period.  Hassle free credit facility at competitive rate of interest.  Cash Withdrawal Facility upto 20% of total credit limit.  Loyalty programme  MasterCard® SecureCode™ enbaled Credit Cards.J&K Bank lets you shop securely online with your J&K Bank MasterCard Credit Card. This service through a simple checkout process, confirms your identity when you make purchases on the Internet  To use the facility, you would:  Connect to the Internet and shop online using your J&K Bank Credit Card.  You don't need any special software to use MasterCard SecureCode.  Using this facility is as easy as using a PIN for ATM transactions.  Grievance Nodal Officer for Credit Cards  Mr. Parvez Ahmad
  • 17. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 17  0194-2486427  grievance.creditcards@jkbmail.com  Card Issuing and Acquiring Department; Corporate Headquarters J&K Bank Most Important Terms and Conditions (JK Bank Credit Card) One Time Password(OTP) for IVR transactions: Effective January 1, 2011, as mandated by Reserve Bank of India (RBI), Credit-Card-issuing Banks in India have introduced an additional measure of security for IVR transactions (Interactive Voice Response transactions are those transactions which are made over the phone where certain Credit-Card details are to be entered into an automated system in order to make payment to a merchant for the purchase of goods/services) through their Credit Cards – the OTP (One Time Password) generation. What is an OTP? An OTP is a six-digit code, valid for a limited period from the time of placing a request for it. You will need to obtain an OTP before every IVR payment transaction. How to obtain an OTP? You can obtain the OTP by visiting http://www.jkbank.net/jksip.php and logging in to J&K Bank Secure Internet Payment. A link Pre OTP is available for generating the OTP which would be emailed to your registered email. Alternatively, the OTP can be displayed on the screen by clicking on the small check box provided for the purpose. How to use the OTP? The OTP is required at the time of making payment on the IVR, where you will be prompted to enter it along with the other details like your credit-card number, card expiry date and CVV number. Merchant Acquiring/ Features  All types of Visa & MasterCard based cards Accepted  Quick Merchant Payment  Merchant Helpdesk and Onsite Support.  Competitive Commission Rates
  • 18. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 18  No hidden Charges Basic Information Depository: A depository is like a bank where securities are held in electronic (dematerialized) form. Dematerialization: It is the process of converting the securities held in physical form (certificates) to an equivalent number of securities in electronic form and crediting the same to the investor's demat account. Dematted securities do not have any certificate numbers or distinctive numbers and are dealt only in quantity i.e. the securities are replaceable Stock Broking through INVESTMART an initiative of ILFS: You can avail the facility of buying and selling of shares under single roof. It integrates your Broker, DP and Bank on a single platform.You may open a trading account by opening a Demat account with J&K BANK, SAVING ACCOUNT with J&K BANK and Stock Broking Account by filling Investor Registration form of INVESTMART an initiative of ILFS and our business patner for providing broking services.For further queries you may contact the DP branches of J&K Bank Depository Participant of NSDL and CDSL: In our country there are two central depositories - National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL).J&K BANK is Depository Participant of both NSDL and CDSL. Under the Depositories Act, investors can avail of the services of the depositories through Depository Participants (DPs) such as J&K BANK. DPs are like bank branches wherein shares in physical forms need to be deposited for converting the same to electronic (demat) form. Market transaction: When securities are transferred from a beneficiary account of an investor to a clearing member account of a broker for ensuring delivery of securities on a stock exchange, then it is a market transaction. Off-market transactions: When securities are transferred from the beneficiary account of one investor to that of another, and the transaction does not get routed to the stock exchange, it is an off-market transaction. Rematerialisation (Remat) It is the process of conversion of securities from electronic to physical form Third party service of Mutual Funds
  • 19. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 19 J&K Bank has entered into tie-ups with reputed Asset Management Companies for distribution of Mutual Fund products. Mutual Fund industry is one of the fastest growing segments in financial services in India. Over the years, banks in India have emerged as the biggest distributors of financial products. This has helped the banks to capture and retain their huge client base and simultaneously adding a steady stream of fee based income. Mutual Funds have become an attractive proposition for investors in the current context and for J&K Bank it will be a good investment option to have in our product portfolio. This shall be an important step towards converting the bank branch into a financial supermarket addressing all the financial needs of the customers thus helping the bank retain the customers within its fold. Moreover the branch can augment its fee based income the Bank aims to match to industry standards. The AMCs with which the Bank has entered into an arrangement are: UTI, Kotak and Reliance Mutual Fund. The Bank shall undertake distribution of their current schemes as well as NFO (New Fund Offer) as and when the AMC comes up with the same. Insurance Services -Life Insurance MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and was incorporated as a joint venture between MetLife International Holdings, Inc., The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors. MetLife is one of the fastest growing life insurance companies in the country. It serves its customers by offering a range of innovative products to individuals and group customers at more than 600 locations through its bank partners and company-owned offices. MetLife has more than 32,000 Financial Advisors, who help customers achieve peace of mind across the length and breadth of the country. MetLife, Inc., through its affiliates, reaches more than 70 million customers in the Americas, Asia Pacific and Europe. Affiliated companies, outside of India, include the number one life insurer in the United States (based on life insurance in force), with over 140 years of experience and relationships with more than 90 of the top one hundred FORTUNE 500® companies. The MetLife companies offer life insurance, annuities, automobile and home insurance, retail banking and other financial services to individuals, as well as group insurance, reinsurance and retirement and savings products and services to corporations and other institutions.
  • 20. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 20 The bank is also Corporate Agent of MetLife and is marketing its products through its strong branch network. Visit the Metlife Website for the details on products PRODUCT RANGE OF THE COMPANY Loans Housing Loan Scheme: Quantum of loan For Construction /Purchase 60 months net salary or 75.00 Lacs whichever is lower. For repairs/renovation 20 months net salary, subject to a maximum of 10.00 Lacs. For purchase of land: 20 months net salary/income subject to maximum of 5 Lacs within J&K and 10.00 Lacs outside J&K. Also as an incentive for small borrowers, the loans upto 1.5 Lacs granted for repairs/renovations of existing houses would now be secured by third party guarantee of two persons or such other security as is deemed appropriate by the Bank. Insurance Life Insurance Segment/ Metlife India Insurance MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and was incorporated as a joint venture between MetLife International Holdings, Inc., The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors. MetLife is one of the fastest growing life insurance companies in the country. It serves its customers by offering a range of innovative products to individuals and group customers at more than 600 locations through its bank partners and company-owned offices. MetLife has more than 32,000 Financial Advisors, who help customers achieve peace of mind across the length and breadth of the country. MetLife, Inc., through its affiliates, reaches more than 70 million customers in the Americas, Asia Pacific and Europe. Affiliated companies, outside of India, include the number one life insurer in the United States (based on life insurance in force), with over 140 years of experience and relationships with more than 90 of the top one hundred FORTUNE 500® companies. The MetLife companies offer life insurance, annuities, automobile and home insurance, retail banking and other financial services to individuals, as well as group insurance, reinsurance and retirement and savings products and services to corporations and other institutions.
  • 21. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 21 The bank is also Corporate Agent of MetLife and is marketing its products through its strong branch network. Tax Products/Planning Tax Products & Planning (Tax Saver Term Deposit Scheme) Purpose: To enable our customers to place long term deposits to earn higher rate of interest and also to avail the tax benefits under section 80C of Income Tax Act, 1961. Savings & Deposits  Savings Bank Deposit Scheme Salient Features  Account can be opened with a minimum initial deposit of 100/- to 500/-  Convenient and easy to operate account to save time and money.  Suitable for irregular income group No time bar on depositing or withdrawing money. Who can open this Account?  A person in his/her name.  More than one person in their joint names.  Minor through guardian or himself if above 10 years of age.  Illiterate persons.  Blind persons. - Associations, clubs, Societies, Trusts, etc. Facilities  Anywhere banking facility.  ATM/Debit card.  Telebanking facility.  Cheque book facility Cards  Global Access Card  Salient Features  Pin Based -Maestro / Cirrus Debit Card  Provides online access to savings or current account.
  • 22. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 22  Accepted at all Domestic as Well as International MasterCard™, Maestro™, Cirrus™ Enabled ATM's and Point Of Sale locations.  Accepted at National Financial Switch (NFS) ATM's.  No Transaction Fee at JK Bank ATM's  No Transaction Fee on purchases Mutual Funds J&K Bank has entered into tie-ups with reputed Asset Management Companies for distribution of Mutual Fund products. Mutual Fund industry is one of the fastest growing segments in financial services in India. Over the years, banks in India have emerged as the biggest distributors of financial products. This has helped the banks to capture and retain their huge client base and simultaneously adding a steady stream of fee based income. Mutual Funds have become an attractive proposition for investors in the current context and for J&K Bank it will be a good investment option to have in our product portfolio. This shall be an important step towards converting the bank branch into a financial supermarket addressing all the financial needs of the customers thus helping the bank retain the customers within its fold. Moreover the branch can augment its fee based income the Bank aims to match to industry standards. The AMCs with which the Bank has entered into an arrangement are: UTI, Kotak and Reliance Mutual Fund. The Bank shall undertake distribution of their current schemes as well as NFO (New Fund Offer) as and when the AMC comes up with the same. Non Resident Banking A deposit plan that provides standard banking facilities such as Cheque book, provision for nomination and other remittance facilities and also allows repatriation of entire funds.
  • 23. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 23 ORGANIZATION STRUCTURE OF THE COMPANY
  • 24. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 24 Chapter II Meaning of perception and customer satisfaction
  • 25. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 25 MEANING OF PERCEPTION: Perception Perception is the ability to pick out something through the different senses. It can be through seeing, hearing, smelling or touching. The sensory stimulus of the body system consciously registers an activity or event in the human memory. Perception depends on complex functions of the nervous system, but subjectively seems mostly effortless because this processing happens outside conscious awareness. Factors affecting perception (a) The Perceiver: When an individual looks at the target and attempts to interprete what he / she sees. Such interpretation is heavily influenced by personal characteristics of the individual perceiver. The characteristics of perceiver include person‟s needs. Past experience, habits, personality, values, attitudes etc. For example: – a negative attitude person interprets negative results and further makes negative perception. (b) The Perceived (object): Characteristics of the target, which has been, observed also affects the individual‟s perception. The physical attributes, appearance and behaviour of other persons in the situation also influences the perception. Physical attributes of the person means age, height, weight, gender etc. Loud people are easily noticeable in a group in comparison to the quite ones. Motion sound, size and other attributes of a target also affect the perception of an individual. Object which is perceived is not observed in isolation, the relationship of a target with its background also influences perception. Person, objects or events that are similar to each other also tend to be grouped together. Greater the similarity, the greater is the probability that we will tend to perceive them as a common group. (c) The Situation: The physical, social and organizational setting of the situation also influences individual‟s perception. The situation in which we see objects or events is important. The elements in the surrounding environment influence our perception. For example: - hearing a
  • 26. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 26 subordinate calling his / her boss by his / her name may be perceived quite differently when observed in an office as opposed to an evening social reception. PERCEPTION AND CUSTOMER SATISFACTION Those who buy the goods or services provided by companies are customers. In other words, a customer is a stakeholder of an organization who provides payment in exchange for the offer provided to him by the organization with the aim of fulfilling a need and to maximise satisfaction. Sometimes the term customer and consumer are confusing. A customer can be a consumer, but a consumer may not necessarily be a customer. Another author explained this difference. I.e. a customer is the person who does the buying of the products and the consumer is the person who ultimately consumes the product (Solomon, 2009, p. 34.) When a consumer/customer is contented with either the product or services it is termed satisfaction. Satisfaction can also be a person‟s feelings of pleasure or disappointment that results from comparing a product‟s perceived performance or outcome with their expectations (Kotler & Keller, 2009, p. 789). As a matter of fact, satisfaction could be the pleasure derived by someone from the consumption of goods or services offered by another person or group of people; or it can be the state of being happy with a situation. Satisfaction varies from one person to another because it is utility. “One man‟s meal is another man‟s poison,” an old adage stated describing utility; thus highlighting the fact that it is sometimes very difficult to satisfy everybody or to determine satisfaction among group of individuals. Client happiness, which is a sign of customer satisfaction, is and has always been the most essential thing for any organization. Customer satisfaction is defined by one author as “the consumer‟s response to the evaluation of the perceived discrepancy between prior expectations and the actual performance of the product or service as perceived after its consumption” (Tse & Wilton, 1988, p. 204) hence considering satisfaction as an overall post-purchase evaluation by the consumer” (Fornell, 1992, p. 11). Some authors stated that there is no specific definition of customer satisfaction, and after their studies of several definitions they defined customer satisfaction as “customer satisfaction is identified by a response (cognitive or affective) that pertains to a particular focus (i.e. a purchase experience and/or the associated product) and occurs at a certain time (i.e. post-purchase, post-consumption)”. (Giese & Cote, 2000, p. 15) This definition is supported by some other authors, who think that consumer‟s level of satisfaction is
  • 27. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 27 determined by his or her cumulative experience at the point of contact with the supplier (Sureshchander et al., 2002, p. 364). It is factual that, there is no specific definition of customer satisfaction since as the years passes, different authors come up with different definitions. Customer satisfaction has also been defined by another author as the extent to which a product‟s perceived performance matches a buyer‟s expectations (Kotler et al., 2002, p. 8). According to Schiffman & Karun (2004) Customer satisfaction is defined as “the individual‟s perception of the performance of the products or services in relation to his or her expectations” (Schiffman & Karun 2004, p. 14). In a nutshell, customer satisfaction could be the pleasure obtained from consuming an offer. Measuring customer satisfaction could be very difficult at times because it is an attempt to measure human feelings. It was for this reason that some existing researcher presented that “the simplest way to know how customers feel, and what they want is to ask them” this applied to the informal measures (Levy, 2009, p. 6; NBRI, 2009). Since customer satisfaction has been considered to be based on the customer‟s experience on a particular service encounter, (Cronin & Taylor, 1992) it is in line with the fact that service
  • 28. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 28 quality is a determinant of customer satisfaction, because service quality comes from outcome of the services from service providers in organizations. Another author stated in his theory that “definitions of consumer satisfaction relate to a specific transaction (the difference between predicted service and perceived service) in contrast with „attitudes‟, which are more enduring and less situational-oriented,” (Lewis, 1993, p. 4-12) This is in line with the idea of Zeithaml et al (2006, p. 106-107). Regarding the relationship between customer satisfaction and service quality, Oliver (1993) first suggested that service quality would be antecedent to customer satisfaction regardless of whether these constructs were cumulative or transaction-specific. Some researchers have found empirical supports for the view of the point mentioned above (Anderson & Sullivan, 1993; Fornell et al 1996; Spreng & Macky 1996); where customer satisfaction came as a result of service quality. In relating customer satisfaction and service quality, researchers have been more precise about the meaning and measurements of satisfaction and service quality. Satisfaction and service quality have certain things in common, but satisfaction generally is a broader concept, whereas service quality focuses specifically on dimensions of service. (Wilson et al., 2008, p. 78). Although it is stated that other factors such as price and product quality can affect customer satisfaction, perceived service quality is a component of customer satisfaction (Zeithaml et al. 2006, p. 106-107). This theory complies with the idea of Wilson et al. (2008) and has been confirmed by the definition of customer satisfaction presented by other researchers. The above figure shows the relationship between customer satisfaction and service quality. The author presented a situation that service quality is a focused evaluation that reflects the customer‟s perception of reliability, assurance, responsiveness, empathy and tangibility while satisfaction is more inclusive and it is influenced by perceptions of service quality, product quality and price, also situational factors and personal factors. (Wilson, 2008, p. 78) It has been proven from past researches on service quality and customer satisfaction that Customer satisfaction and service quality are related from their definitions to their relationships with other aspects in business. Some authors have agreed to the fact that service quality determines customer satisfaction. Parasuraman et al., (1985) in their study, proposed that when perceived service quality is high, then it will lead to increase in customer satisfaction. Some
  • 29. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 29 other authors did comprehend with the idea brought up by Parasuraman (1995) and they acknowledged that “Customer satisfaction is based upon the level of service quality that is provided by the service providers” (Saravana & Rao, 2007, p. 436, Lee et al., 2000, p. 226). Looking into (figure 1), relating it to these authors‟ views, it is evident that definition of customer satisfaction involves predicted and perceived service; since service quality acted as one of the factors that influence satisfaction. More evidence of this relationship has been proven by past researches.
  • 30. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 30 Chapter III Review of literature and Research Methodology
  • 31. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 31 PROPOSED MODEL AND REVIEW OF LITERATURE Our conceptual model is demonstrated in Figure 1. This model starts with SERVQUAL measurement scale, consisting of six dimensional structures: tangibles, reliability, responsiveness, assurance, and empathy, and compliance dimensions to measure J&K bank service quality. Furthermore, a conceptual model of the relationship between service quality and customer satisfaction (Figure 1) is developed based on the literature and hypotheses are explore The SERVQUAL model has provided a comprehensive conceptualization of service quality with an instrument to measure perceived service quality. This method has been very popular with academics and researchers to assess the customer perception of service quality for a variety of service industries. The five dimensions of service quality include:  Tangibles (appearance of physical components);  Reliability (dependability of service provider and accuracy of performance);  Responsiveness (promptness and helpfulness);  Assurance (knowledge and courtesy of employees and their ability to inspire trust and confidence) This is a generic model and instrument for all service encounters. In fact, a number of researchers and academics have recently studied the conceptualization and measurement approach used for developing the SERVQUAL scale in different industries. Dabholkar et al. (1996) suggested that service quality is multi- level and multi- dimensional. They found that
  • 32. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 32 quality of service is directly influenced by the customer‟s perceptions of performance levels, and the customers‟ personal characteristic are important in assessing the value, but not quality. Angur et al. (1999) suggested that the SERVQUAL scale is multidimensional and is able to provide more diagnostic information due to its greater variability across banks than the SERVPERF scale. Although the SERVQUAL model has greatly contributed to the literature on service quality it has been criticized. Generally, critics have questioned the multidimensional nature of the instrument, measurement scales, psychometric properties, and the feasibility of SERVQUAL as a framework in measuring service quality. Carman (1990) says that the SERVQUAL needed to be customized by adding items or changing the wording of items. The dimensions stability of SERVQUAL was unclear, not completely generic, and not sufficient to meet service quality measurement needs. Babakus and Boller (1992) revealed that the SERVQUAL model appears to suffer from a number of methodological and measurement flaws. The five dimensions of SERVQUAL failed to construct a service quality measurement and the SERVQUAL is uni dimensional rather than a five-dimensional construct. They further suggested that the dimensionality of service quality may depend on the type of industry being studied. Cronin and Taylor (1992) suggest that the SERVPERF scale explains more variation in service quality than does SERVQUAL and the SERVQUAL is uni-dimensional. Teas (1993) revealed that the P-E model indicates a number of problems of the conceptual and operational definitions of the expectations and the revised expectations (E *) components of the model. In retail banking, Newman (2001) suggested that the SERVQUAL model does not appear to be the holistic model and doubted the value of SERVQUAL as a measure of service quality. In commercial banks, Jabnoun and Al-Tamimi (2003) explained that the dimensions found were different from the original SERVQUAL dimensions, and there were problems with these as there were some overlaps. Cui et al. (2003) revealed that SERVQUAL and SERVPERF were not uni-dimensional. Confirmatory factor analysis revealed that the measurement scale lacked validity with samples from different cultures. To date, there have been a few empirical studies regarding the dimension of service quality in banking. Al-Tamimi and Al-Amiri (2003) modified the five SERVQUAL dimensions to measure service quality. They found that reliability was the most important dimension on their instrument.
  • 33. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 33 Even though a number of methodological issues have been debated and are controversial, the preponderance of research has been strongly influenced by the conceptual model of service quality proposed by Parasuraman et al. (1985), and subsequently operationalized and refined by the same authors. This articulation of the service quality construct and its associated SERVQUAL measure has spawned hundreds of studies across the industries. Karatape et al. (2005) suggested that service quality measures developed in one culture may capture service quality sentiments in another culture. In the service literature, Oliver (1980) explained that customer satisfaction entails the full meeting of customer expectation of the products and services. If the perceived performance matches or even exceeds customers‟ expectations of services, they are satisfied. If it does not, they are dissatisfied (de Wulf, 2003). In the real world, unsatisfied customers tend to create negative word-of-mouth and convey their negative impression to other customers (Lewis, 1991; Newman, 2001; Caruana, 2002). These positive and negative word-of-mouth communications are very useful. Previous research has identified various factors that determine customer satisfaction in the retail banking sector in the USA and Europe. To satisfy customers, Greek Cypriot bank in Turkey used service quality to achieve customer satisfaction. The SERVQUAL dimensions were explanatory variables in predicting customer satisfaction and the reliability dimension had highest impact on overall customer satisfaction (Arasly et al., 2005a). This study was consistent with Othman and Owen (2001) who suggested that there is a strong link between SERVQUAL and customer satisfaction. Fast and efficient service; friendliness of bank personnel; confidentiality of bank; speed of transaction are as the key criteria which they has satisfied by the banks (Haron et al., 1994). Finding from college students in Bahrain, indicated that young customers places more emphasis on factors like a bank‟s reputation, friendliness of bank personnel, convenient location, 24-hours ATM, and availability of parking space in selecting their banks (Almossawi, 2001). The bank‟s ability to deliver these benefits on an on-going basis probably influences the level of customer satisfaction. Banks have provided innovative methods of satisfying customers, such as internet banking and online system, telephone and call center. According to Levesque and McDougall (1996), convenience and competitiveness of the bank are two important factors which are likely to influence the overall satisfaction levels of a customer.
  • 34. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 34 In the services literature, strong emphasis is placed on the importance of service quality perceptions and the relationship between service quality and customer satisfaction (Cronin and Taylor, 1992; Taylor and Baker, 1994). Some researchers and academics described that customer satisfaction is an antecedent of service quality (Parasuraman et al., 1985, 1988, 1991, 1994; Carman, 1990; Bitner, 1990), and others have counterargued that the service quality as an antecedent of customer satisfaction (Cronin and Taylor, 1992, 1994; Bolton and Drew, 1991; Anderson and Sullivan, 1993) and that service quality is not equivalent to satisfaction (Oliver, 1980). The current research from retail banking sector in UAE, indicated that service quality dimensions appear to be linked to customer satisfaction, where core and relational dimensions of service quality are causal antecedents of customer satisfaction (Jamal and Naser, 2002). However, there is very little empirical research demonstrating the importance of service quality dimensions in determining customer satisfaction (Fisk et al., 1993; Levesque and McDougall, 1996). In a recent study, Levesque and McDougall (1996) found that the performance of the service provider on core and relational dimensions of services was an important driver for customer satisfaction in retail banking. Bitner et al. (1994) and Anderson et al. (1994) also point to this link by suggesting that improved service quality will provide significant impact of customer satisfaction. The causal relationship between service quality and customer satisfaction is the subject of great academic debated and no consensus has been reached (Bahia et al., 2000). Nevertheless, from a theoretical point of view the researchers and academics have established the conceptual definition of customer satisfaction. Then, we develop a set of hypothesis, service quality are positively related to customer satisfaction. SERVQUAL SCALE: The SERVQUAL scale includes five dimensions: tangibles, reliability, responsiveness, assurance and empathy. Within each dimension are several items measured on a five-point scale from strongly agree to strongly disagree. SERVQUAL QUESTIONS: Likert scale was used to measure the responses provided by the respondents and the Likert format items were presented with 5-point scales, where:
  • 35. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 35 „1‟ = Strongly Disagree, 2‟ = Disagree, „3‟ = Indifferent, 4‟ = Agree and 5‟ = Strongly Agree. RESEARCH METHODOLOGY Research Methodology is a way to systematically solve the research problem. The Research Methodology includes the various methods and techniques for conducting a Research. “D. Slesinger and M.Stephenson in the encyclopedia of Social Sciences define Research as “the manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art”. Research is a careful investigation or inquiry especially through search for new facts in branch of knowledge: market research specifies the information. Required to address these issues: designs the method for collecting information: manage and implements the data collection process analyses the results and communicates the finding and their implications.Research problem is the one which requires a researcher to find out the best solution for the given problem that is to find out the course of action, the action the objectives can be obtained optimally in the context of a given environment. RESEARCH PROBLEM To find the Customer‟s Perception toward various products and services of J&K bank. SOURCE OF INFORMATION Since this research is related to the customer‟s perception, so the important sources of information are customers themselves. SAMPLE DESIGN The sample size that was studied in this project is 40. Method of sampling – Convenience sampling INSTRUMENT OF DATA COLLECTION:
  • 36. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 36 The objectives of the project are such that both primary and secondary data is required to achieve them. So both primary and secondary data was used for the project. The mode of collecting primary data is questionnaire mode and sources of secondary data are research work already done & websites. PRIMARY DATA: The primary data was collected to measure the perception of corporate customer towards services and products of J&K Bank. The primary data was collected by means of direct personal interview method through structured questionnaire and analysis was done on the basis of response received from the customers. The source for the primary data was a questionnaire. The questionnaire is the most popular and useful method for the collecting survey data and helps in analysing the information from the framed questions to get the real picture of the subject. The questionnaire has been designed in such a manner that the customer‟s perception level can be measured and consumer can enter his/her responses easily. The questionnaire that was used for the collection of the research data contained 10 questions. Out of which, 9 questions were closed question based on options and 1 open end question. The questions used in the questionnaire contained information and details about the bank like  Details of the person interacted about product/service being utilized  Customer‟s current level of knowledge regarding bank product  Customer‟s preferences about the product which they would rate higher than other product and  Customer‟s media preference or the way in which they would like the product to be advertised or promoted SECONDARY DATA: The secondary data used in the research was collected from  The Jammu and Kashmir bank‟s magazines.  Websites.
  • 37. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 37 IMPORTANCE OF RESEARCH METHODOLOGY Whenever a scientific problem is to be solved there are several important steps to follow. The problem must be stated clearly, including any simplifying assumptions. Then develop a mathematical statement of the problem. This process may involve use of one or more mathematical procedures. Frequently, more advanced text books or review articles will be needed to learn about the techniques and procedures. Next, the results have to be interpreted to arrive at a decision. This will require experience and an understanding of the situation in which the problem is embedded. NEED OF THE STUDY In the current trend, customer satisfaction plays a major role in all parts of the service. This research work is used to predict the over-all customer satisfaction and dissatisfaction with J&K bank services. This study helps to identify the customers‟ perception and satisfaction of J&K bank products and services. Very less work has been done in this field especially regarding products and services of J&K bank. OBJECTIVES OF THE STUDY Every study has a particular goal. A study without objectives cannot reach the destination. Our project work is also directed to some particular targets and the main objectives of the study are as bellow:  To study the customer perception towards various products and services of J&K Bank, which is a subject of customer perception towards various services and products.  To study the major factors responsible for their satisfaction.  To make bank employees aware about the customer problems and give suggestions to solve them so that the Bank can retain and maintain the loyal customers. HYPOTHESES OF STUDY:
  • 38. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 38 Perception of corporate customers towards various services and products offered by J&K bank is a by- product of customer satisfaction level which depends on the services offered by bank. Various indicators of satisfaction level include:  Tangibility  Reliability  Responsiveness  Assurance  Compliance TABLE 1: HYPOTHESES OF STUDY SNO OBJECTIVE HYPOTHSES TEST 1 To identify the perception of corporate customers on the basis of gender and marital status towards products and services of J&K bank. Demographic profile wise (gender, marital status) customer differs with regard to perception towards J&K bank. T-test
  • 39. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 39 2 The objective is to study the impact factor of tangibility, reliability, responsiveness, assurance and compliance on the perception of corporate customers towards products and services of J&K bank. The perception of corporate customers towards products and services of J&K bank is significantly predicted by tangibility, reliability, assurance, responsiveness and compliance. COORELATION
  • 40. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 40 Chapter IV Data analysis and interpretation
  • 41. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 41 HYPOTHESES TESTING TABLE 1: PROFILE OF RESPONDENTS S.NO PARTICULARS DESCRIPTION FREQUENCIES PERCENTAGE (%) PIE-CHARTS 1 Gender Male Female Total 23 14 37 54.1 45.9 100.0 2 Age Below 35 years 35-45 years Above 45 years Total 23 9 5 37 62.2 24.3 13.5 100.0 3 Marital Status Married Unmarried Total 20 17 37 62.2 37.8 100.0 4 Education Illiterate Secondary Graduate Total 11 7 19 37 29.7 18.9 51.4 100.0 5 Amount of loan availed Upto 5 lakhs 5-10 lakhs Above 10 lakhs Total 16 9 12 37 43.2 18.9 51.4 100.0
  • 42. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 42 Table 8 above shows that male customers of J&K bank are 54.1% while females are 45.9%. customers in the age group below 35 years are 62.2%, 35-45 years are 24.3%, and above 45 years are 13.5%, 62.2% of customers are married while 37.8% are unmarried. 29.7% of customers are illiterate, 18.9% are secondary educated while 51.4 % are graduate. 43.2% of customers have availed a loan of up to 5 lakhs, 18.9% in between 5-10 lakhs and 51.4% above 10 lakhs. TABLE 2: CORRELATION COEFFICIENT RELATIONSHIP BETWEEN RELIABILITY AND PERCEPTION OF CUSTOMERS TOWARDS PRODUCTS AND SERVICES OF J&K BANK S.NO R1 R2 R3 R4 R5 R6 R7 R1 Pearson Correlation 1 R2 Pearson Correlation 0.12** 1 R3 Pearson Correlation 0.04** 0.32** 1 R4 Pearson Correlation 0.37** 0.48** 0.31** 1 R5 Pearson Correlation 0.16** 0.25** 0.16** 0.20** 1 R6 Pearson Correlation 0.08** 0.49** 0.49** 0.73** 0.13* 1 R7 Pearson Correlation 0.48** 0.37** 0.48** 0.50** 0.08 0.40* 1 *Correlation is significant at 5% level of significance ** Correlation is significant at 1% level of significance Table 2 shows the results of the correlation between 7 items of reliability and the perception of customers towards the products and services provided by J&K Bank. The item-wise value of Pearson correlation coefficient with perception is 0.48 (J&K Bank keeps its records accurately),
  • 43. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 43 0.37 (J&K Bank employees provide services at the promised rates), 0.48 (J&K Bank offers wide range of products and services), 0.50 (J&K bank keeps your information confidential), 0.08 (J&K Bank involves hidden policies) and 0.40 (J&K bank account is safe). Thus the hypothesis “There is a positive association between reliability and perception towards J&K Bank’s products and services”. TABLE 3: CORRELATION COEFFICIENT RELATIONSHIP BETWEEN RESPONSIVENESS AND PERCEPTION OF CUSTOMERS TOWARDS PRODUCTS AND SERVICES OF J&K BANK S.NO RE1 RE2 RE3 RE4 RE5 RE6 RE1 Pearson Correlation 1 RE2 Pearson Correlation 0.37** 1 RE3 Pearson Correlation 0.22** 0.17** 1 RE4 Pearson Correlation 0.18* 0.31** 0.31** 1 RE5 Pearson Correlation 0.15** 0.27** 0.36** 0.29** 1 RE6 Pearson Correlation 0.88** 0.59** 0.56** 0.63** 0.13* 1 *Correlation is significant at 5% level of significance ** Correlation is significant at 1% level of significance Table 3 shows the results of the correlation between 6 items of responsiveness and the perception of customers towards the products and services provided by J&K Bank. The item-wise value of Pearson correlation coefficient with perception is 0.88 (Employees of J&K Bank are always willing to help customers), 0.59 (When you have problems, J&K Bank is able to solve
  • 44. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 44 problems), 0.56 (Employees of J&K Bank respond to customers request promptly), 0.63 (J&K bank provides efficient services), 0.13 (J&K Bank provides you knowledge about the available schemes). Thus the hypothesis “There is a positive association between responsiveness and perception towards J&K Bank’s products and services”. TABLE 4: CORRELATION COEFFICIENT RELATIONSHIP BETWEEN ASSURANCE AND PERCEPTION OF CUSTOMERS TOWARDS PRODUCTS AND SERVICES OF J&K BANK S.NO A1 A2 A3 A4 A5 A6 A1 Pearson Correlation 1 A2 Pearson Correlation 0.715** 1 A3 Pearson Correlation 0.414* .621** 1 A4 Pearson Correlation .312 0.375* .527** 1 A5 Pearson Correlation 0.098 0.210 .580** .612** 1 A6 Pearson Correlation 0.57 0.236 .527** .838** .781** 1 *Correlation is significant at 5% level of significance ** Correlation is significant at 1% level of significance Table 4 shows the results of the correlation between 6 items of ASSURANCE and the perception of customers towards the products and services provided by J&K Bank. The item-wise value of Pearson correlation coefficient with perception is 0.57 (J&K bank don‟t fully assures about the rate of interest), 0.236 (customers aren‟t satisfied with the rate of interest charged by J&K bank),
  • 45. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 45 0.527 (J&K bank provides assurance about the provisions of product and services), 0.838 (J&K bank employees are knowledgeable), 0.781 (J&K bank provides financial advice). Thus the hypothesis “There is a positive association between assurance and perception towards J&K Bank’s products and services”. TABLE 5: CORRELATION COEFFICIENT RELATIONSHIP BETWEEN COMPLIANCE AND PERCEPTION OF CUSTOMERS TOWARDS PRODUCTS AND SERVICES OF J&K BANK S.NO C1 C2 C3 C4 C5 C6 C7 C1 Pearson Correlation 1 C2 Pearson Correlation 0.693** 1 C3 Pearson Correlation 0.703* .681** 1 C4 Pearson Correlation .690** 0.617** .633** 1 C5 Pearson Correlation 0.266 0.702** .535** .473** 1 C6 Pearson Correlation 0.593** 0.765** .646** .577** .619** 1 C7 Pearson Correlation 0.259 0.6.0** .423** .325* .850** .479** 1 *Correlation is significant at 5% level of significance ** Correlation is significant at 1% level of significance Table 5 shows the results of the correlation between 7 items of compliance and the perception of customers towards the products and services provided by J&K Bank. The item-wise value of
  • 46. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 46 Pearson correlation coefficient with perception is 0.259 (J&K bank don‟t Follow its policy), 0.6 (customers repay loan in time), 0.423 (customers follow rules and regulations of the bank), 0.325 (J&K bank is competent), 0.479 (J&K bank follows social responsibility). Thus the hypothesis “There is a positive association between compliance and perception towards J&K Bank’s products and services”. TABLE 6: OUTPUTS FROM T-TEST S.NO STATEMENTS DESCRIPTION MEAN T-VALUE P (significance value) T1 J&K Bank provides you visually appealing materials associated with services Married Unmarried 2.70 2.41 0.70 0.73 .002 T2 J&K Bank offers speedy and efficient transactions Married Unmarried 2.75 3.18 -1.21 -1.23 0.067 T3 J&K Bank has convenient opening business hours Married Unmarried 3.10 2.76 1.21 1.26 0.004 T4 J&K Bank offerings (products/services) are adequate to meet your needs Married Unmarried 2.60 2.14 0.52 0.52 0.065 T5 J&K Bank products/services are attractive than its competitors Married Unmarried 3.35 2.71 1.70 1.71 0.078 T6 J&K Bank provides all the services (money transfers, insurance, savings, Married Unmarried 3.25 2.88 1.14 1.16 0.000
  • 47. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 47 etc.) T7 You are satisfied with the tangibility of products and services Married Unmarried 3.95 3.12 2.40 2.42 0.064 Table 6 shows the marital status-wise mean difference in perception of customers for the items of tangibility. Significant mean difference of perception between married and unmarried was reported for 3 items of tangibility namely, J&K Bank provides you visually appealing materials associated with services (.002), J&K Bank has convenient opening business hours (0.004), J&K Bank provides all the services like, money transfers, insurance, savings, etc. (0.000) as the p value was less than 0.05. Moreover, insignificant mean difference of perception between male and female was reported as the p-value for the other 4 items was more than 0.05, J&K Bank offers speedy and efficient transactions (0.067), J&K Bank offerings (products/services) are adequate to meet your needs (0.065), J&K Bank products/services are attractive than its competitors (0.078) and You are satisfied with the tangibility of products and services (0.064). Thus the hypothesis “Marital status wise mean difference exists with regard to the perception of tangibility of products and services of J&K Bank” stands partially accepted. TABLE 7: OUTPUTS FROM T-TEST S.NO STATEMENTS DESCRIPTION MEAN T-VALUE P (significance value) T1 J&K Bank provides you visually appealing materials associated with services Male Female 3.70 2.51 0.30 0.53 .001 T2 J&K Bank offers speedy and efficient transactions Male Female 4.35 2.18 0.21 0.23 0.004 T3 J&K Bank has convenient opening business hours Male Female 4.10 2.76 0.25 0.23 0.004
  • 48. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 48 T4 J&K Bank offerings (products/services) are adequate to meet your needs Male Female 2.60 4.14 0.62 0.22 0.000 T5 J&K Bank products/services are attractive than its competitors Male Female 3.45 4.71 0.50 0.71 0.000 T6 J&K Bank provides all the services (money transfers, insurance, savings, etc.) Male Female 4.25 2.28 1.14 1.16 0.000 T7 You are satisfied with the tangibility of products and services Male Female 3.85 4.32 2.40 2.42 0.032 Table 7 shows the gender-wise mean difference in perception of customers for the items of tangibility. Significant mean difference of perception between male and female was reported for 7 items of tangibility namely, J&K Bank provides you visually appealing materials associated with services (.001), J&K Bank has convenient opening business hours (0.004), J&K Bank provides all the services like, money transfers, insurance, savings, etc. (0.004), J&K Bank offers speedy and efficient transactions (0.000), J&K Bank offerings (products/services) are adequate to meet your needs (0.000), J&K Bank products/services are attractive than its competitors (0.000) and You are satisfied with the tangibility of products and services (0.032) as the p value was less than 0.05.. Thus the hypothesis “Gender-wise mean difference exists with regard to the perception of tangibility of products and services of J&K Bank” stands accepted. :
  • 49. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 49 Chapter v Suggestions
  • 50. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 50 SUGGESTIONS TO THE BANK:  Bank should educate its customers about its terms and conditions clearly. Bank shouldn‟t involve any hidden policy while dealing with customers.  J&K bank should follow its policies in a strict manner.  Perception of married customers towards tangibility of products is good, while that of unmarried customers is low. J&K bank should make its products and services more appealing to its unmarried customers as they are the active spenders.  Perception of male customers towards products and services of J&K bank is good, while that of female customers, in comparison to male customers isn‟t so significant. Thus J&K should offer more services and products that appeal to female customers.  J&K bank should establish single window operating system. Customers feel inconvenience while going through lengthy procedures of bank. LIMITATION OF THE RESEARCH Every research is limited by its imagination is true, but we definitely have some limitations on this research. The limitations are as follows:  The study was restricted to J&K bank customers only.  The study is restricted to corporate customers residing in Jammu region only.  Considering the size of population that we have, the sample size that we have taken is very small.  Time factor was one of big limiting factor.  Data given by the respondents are limited to their own attitude, perception, knowledge, feeling and awareness. So generalization of this research work isn‟t possible.  Due to human behavior, element of subjectivity is present.
  • 51. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 51 FUTURE SCOPE:  This research work can be extended by taking into consideration larger sample size, so that results can be generalised.  Other banks can be included (HDFC,ICICI, PNB etc.)  Perception of private bank customer and public bank customer could also be compared.  Perception of bank employees towards banks and services could also be included.  Perception of customers residing outside J&K and using J&K bank services could be taken into consideration.
  • 52. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 52 Questionnaire
  • 53. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 53 QUESTIONNAIRE NOTE: You are requested to fill in the relevant blanks. The information collected would be used for research purposes only. PART 1 GENERAL INFORMATION 1 NAME OF THE CUSTOMER……………………………………………….. 2 AGE: Below 35 years/ 35-45 years/ Above 45 years 3 GENDER: MALE/ FEMALE 4 MARITAL STATUS: MARRIED/ UNMARRIED 5 EDUCATION STATUS: Illiterate/ Secondary/ Graduate/ Any other 6 AMOUNT OF LOAN BORROWED: UPTO Rs. 5 lakh/ 5 lakh-10 lakh/ Above 10 lakh PART 2 SPECIFIC INFORMATION This part attempts to seek information on the degree of your satisfaction level with 5 options namely 1, 2, 3, 4, 5 where 1= strongly disagree, 2= disagree, 3= indifferent, 4= agree, 5= strongly agree. SNO. STATEMENTS 1 2 3 4 5 A. TANGIBILITY
  • 54. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 54 T1 J&K bank provides you visually appealing materials associated with Services 1 2 3 4 5 T2 J&K bank offers speedy and efficient transactions 1 2 3 4 5 T3 J&K Bank has convenient opening business hours 1 2 3 4 5 T4 J&K bank offerings (products/services) are adequate to meet your needs 1 2 3 4 5 T5 J&K bank Products/services are attractive than its competitors 1 2 3 4 5 T6 J&K Bank provides all the services (money transfer, insurance, savings etc.) 1 2 3 4 5 T7 You are satisfied with the tangibility of products and services 1 2 3 4 5 B. RELIABILITY R1 J&K Bank keeps its records accurately 1 2 3 4 5 R2 J&K bank employees provide services at the promised time 1 2 3 4 5 R3 J&K bank offers wide range of products and services provided 1 2 3 4 5 R4 J&K bank keeps your information confidential 1 2 3 4 5 R5 J&K bank involves hidden policy 1 2 3 4 5 R6 J&K bank account is safe 1 2 3 4 5 R7 J&K bank is reliable 1 2 3 4 5 C. RESPONSIVENESS RE1 Employees of J&K bank are always willing to help customers 1 2 3 4 5 RE2 When you have problems, J&K bank is able to 1 2 3 4 5
  • 55. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 55 solve problem and cooperate RE3 Employees of J&K bank respond to customer request promptly 1 2 3 4 5 RE4 J&K bank provides efficient counter service 1 2 3 4 5 RE5 J&K bank provides you knowledge about the available schemes 1 2 3 4 5 RE6 You are satisfied with responsiveness of employees of J&K bank 1 2 3 4 5 D. COMPLIANCE C1 J&K bank follow its policies 1 2 3 4 5 C2 You make loan repayment on time 1 2 3 4 5 C3 You follow the rules and regulations of the bank 1 2 3 4 5 C4 Provision of free interest loans 1 2 3 4 5 C5 J&K bank is competent than any other bank 1 2 3 4 5 C6 J&K bank follows social responsibility 1 2 3 4 5 C7 J&K bank is fully compliance 1 2 3 4 5 E. ASSURANCE A1 J&K bank makes you fully assured about the rate of interest 1 2 3 4 5 A2 You are satisfied with the rate of interest charges by J&K bank 1 2 3 4 5 A3 J&K bank makes you assured about the provision of products and services 1 2 3 4 5 A4 J&K bank employees are knowledgeable 1 2 3 4 5 A5 J&K bank provides financial advice 1 2 3 4 5 A6 J&K bank product and services are fully assured 1 2 3 4 5
  • 56. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 56 References
  • 57. PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 57 REFERENCES: Gupta & Zeithaml (2006), “Customer Metrics and Their Impact on Financial Performance” Marketing Science J., 25(6), 718–739. Jain & Gupta (2012), “Customer Perception on Service Quality in Banking sector: With Special Reference to Indian Private Banks”, International Journal of Research in Finance & Marketing, Volume 2, Issue 2, ISSN NO: 2231-5985 Jessica (2011), “The Relationship between Customer Satisfaction and Service Quality: a study of three Service sectors in Umea”, Master‟s Thesis, two-years, 30hp, Umea School of Business Pandey, Darzi and Khaja (2014), “A Study on Customer Satisfaction towards J&K Grameen Bank: An Empirical Study”, International Journal of Research in IT, Management and Engineering, Volume 3, Issue 7, ISSN NO: 2249-1619 Tahir & Mushtaq‟s (2013), “An Empirical Study of Customer Satisfaction in Indian Banks: A Case Study of Jammu & Kashmir Bank”, International Journal of Applied Services Marketing Perspectives, Volume 2, Number 3, ISSN (P):2279-0977 http://www.jkbank.net/nri.php