CHAPTER:-1
INTRODUCTION OF THE STUDY
The report contains the brief description of the state bank of India. It contains the finding and analysis of the survey conducted to gather primary data to judge the importance of various attributes that influence the satisfaction of customer in different manner and to the different extent. These attributes are classified as initial experience, service delivery experience, relationship experience and grievance handling. Further an attempt has been made to know the overall satisfaction of the customer.
Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals. Customer service proves to be one of the most important factors governing business.
OBJECTIVE OF THE STUDY:-
• TO find out the customer feedback i.e. improvement required or suggestion.
• To find out the relationship between bank and the customer.
• To study the Satisfaction of customers towards the ― state bank of India.
• To Identify the factors that influences the customer behavior of ―state bank of India.
• To identify the factors those influence the selection of SBI banking services in MUMBAI DISTRICT.
SCOPE OF THE STUDY:-
The present study was undertaken to know the preference of the customer towards state bank of India (SBI). The problem of the customer is they are not aware of the services provided by their bank. The study also force on the customer perception that how the banking services can be improved. In my study I have used both primary sources of data as well as secondary sources of data.
• The study has been conducted on behalf of ―STATE BANK OF INDIA.
• The study is confined to the Mumbai region.
• The study covers the service providers and users of ―STATE BANK OF INDIA.
• The study has put forward the Customers as well as acceptability behavior for the services.
• The scope of the study is to find out the ―Customer Satisfaction
Limitations of the Study:-
The study report consists of few limitations:-
• The report has been conducted within a limited time frame.
• The study is self financed.
• The study is limited to the customer of Mumbai only.
• Only selected Branches and Banks have been considered for the study.
• Samples were selected conveniently.
• The sample size does not represent the total population.
• The sample of size is limited to 30 only and the sample size may not represent whole market.
LITERATURE REVIEW:-
This project report has been prepared as per the requirement of the syllabus of
MBA course structure under which the students are the required to undertake
project.
It was a first hand experience for us as that we were exposed to the professional
set-up and were facing the market, which was really a great experience.
During project period, I had very touching experiences. When business is involved,
experiences counts a lot, as we know, experience are an instrument, which leads
towards success.
CHAPTER:-1
INTRODUCTION OF THE STUDY
The report contains the brief description of the state bank of India. It contains the finding and analysis of the survey conducted to gather primary data to judge the importance of various attributes that influence the satisfaction of customer in different manner and to the different extent. These attributes are classified as initial experience, service delivery experience, relationship experience and grievance handling. Further an attempt has been made to know the overall satisfaction of the customer.
Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals. Customer service proves to be one of the most important factors governing business.
OBJECTIVE OF THE STUDY:-
• TO find out the customer feedback i.e. improvement required or suggestion.
• To find out the relationship between bank and the customer.
• To study the Satisfaction of customers towards the ― state bank of India.
• To Identify the factors that influences the customer behavior of ―state bank of India.
• To identify the factors those influence the selection of SBI banking services in MUMBAI DISTRICT.
SCOPE OF THE STUDY:-
The present study was undertaken to know the preference of the customer towards state bank of India (SBI). The problem of the customer is they are not aware of the services provided by their bank. The study also force on the customer perception that how the banking services can be improved. In my study I have used both primary sources of data as well as secondary sources of data.
• The study has been conducted on behalf of ―STATE BANK OF INDIA.
• The study is confined to the Mumbai region.
• The study covers the service providers and users of ―STATE BANK OF INDIA.
• The study has put forward the Customers as well as acceptability behavior for the services.
• The scope of the study is to find out the ―Customer Satisfaction
Limitations of the Study:-
The study report consists of few limitations:-
• The report has been conducted within a limited time frame.
• The study is self financed.
• The study is limited to the customer of Mumbai only.
• Only selected Branches and Banks have been considered for the study.
• Samples were selected conveniently.
• The sample size does not represent the total population.
• The sample of size is limited to 30 only and the sample size may not represent whole market.
LITERATURE REVIEW:-
This project report has been prepared as per the requirement of the syllabus of
MBA course structure under which the students are the required to undertake
project.
It was a first hand experience for us as that we were exposed to the professional
set-up and were facing the market, which was really a great experience.
During project period, I had very touching experiences. When business is involved,
experiences counts a lot, as we know, experience are an instrument, which leads
towards success.
For the past three decades India’s banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India’s growth process.
For the past three decades India’s banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India’s growth process.
The project presentation talks about public and private banks. It compares the two sectors by analyzing the financial details and the products and services provided by each of the two sectors. This is done by taking case study of two banks - State Bank of India in public sector and ICICI bank in private sector. Both of these banks are leading in their respective sectors.
A Study on Customer’s Satisfaction towards Banking Services of State Bank of ...Aby Abdul Rabb
Abstract: The purpose of this research article is to evaluate the customers’ satisfaction towards the banking services rendered by the SBI in Kanyakumari District. The author conducted a literature search on banking services of SBI interviewing of its 150 customers and thoroughly scrutinized how it caters to the banking needs of the inhabitants of Kanyakumari district. The study also focused on various factors that determine the customers’ satisfaction like employees’ behaviour, banking services, banking performance, infra- structure facility, loan oriented services and other value added services. Analysis was made by using various tools like percentage Analysis, Chi- Square Test and charts. The result showed that there is a significant relationship between the variable of customer satisfaction and banking services of the SBI and the customers have a medium level of satisfaction. The SBI could consider the researcher’s suggestions in order to alleviate its reputation and customer satisfaction.
Keywords: Customer satisfaction, Banking Services and services of SBI.
Customers Satisfaction on the Retail Banking Sector in Bangladesh: A Case Stu...Dr. Amarjeet Singh
Nowadays competition among company to the
company very serves, but most of the companies present
nearly the same product or service with their competitors. To
comprehend from competitors a firm need or offer superior
services. Customer satisfaction is now one of the important
key factors in the business sector. When it comes to banking
sector customer satisfaction level is differentiated to one bank
to another, thus measuring customer satisfaction is awfully
important. without satisfied customers, the bank cannot exist.
This work focus on the customer satisfaction in the retail
bank on city bank limited. This research is conducted to
affirm customer expectation on retail banking, which is
decisive for the growth of the company.
CUSTOMER SATISFACTION AND AWARNESS ON PUBLIC SECTOR BANK SECTORS IN TIRUCHIRA...IAEME Publication
Public sector banks are essential to the Indian banking sector. Delivering highquality services is a requirement for winning over customers, and they can only keep them by satisfying their needs. The first accomplishment of the public service provider is to continue operating in the market despite a fiercely competitive environment and numerous formidable rivals. Therefore, Public Sector Banks must focus on growing their client base in order to support their operations and succeed via them by providing real, sincere, and exceptional services. This study examines consumer awareness of and satisfaction with Tiruchirappalli City's public sector banking services. Based on the number of branches, State Bank of India, CanaraBank, Indian Overseas Bank, and Indian Bank were chosen for this study out of a total of 12 public sector banks. It uses a descriptive research approach. For this study, 150 participants were chosen using a proportionate sample technique. Five service quality dimensions—tangibility, assurance, reliability, responsiveness, and empathy—are measured in order to make this study effective. This study makes use of both primary (questionnaire) and secondary data. The acquired data were analysed using a number of statistical methods, including percentage analysis, chi-square test, weighted average method, and sign test. According to the study's findings, there is no statistically significant difference between the overall mean and each individual mean of the statements regarding the degree of satisfaction with the services offered by public sector banks in Tiruchirappalli City, and Indian Overseas Bank should focus more on the dimensions of service quality.
Customers’ Satisfaction on E Banking Services in Indian Banking Sectorsijtsrd
Internet Banking is about using the infrastructure for digital age to create opportunities, both in local and global market. The purpose of this research is to understand the impact of service quality factors of Internet Banking on customer satisfaction in Indore district. Banks play a major role in all the economic and financial activities in modern society E banking is the application of electronic means in interaction between bankers and customer, and bankers and businesses, as well as in internal banking operations, to simplify and progress the banking services. Today, approximately all banks have adopted ICT as a mean of improving the service quality of banking servicesThis paper examines the customer satisfaction on the Electronic Banking Services of Public Sector and Private Sector Banks in Indore district. The sample size of the study is 80 the data is gathered from the primary information. For the purpose of analysis, the customer’s satisfaction in both banks has been assessed in seven dimensions based on the suggestions. Reliability, Accessibility, User friendliness, Privacy Security, Efficiency, Responsiveness and Fulfilment. ANOVA test were applied to test the hypotheses. Dr. Kamaljeet Bhatia "Customers’ Satisfaction on E-Banking Services in Indian Banking Sectors" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-5 , August 2021, URL: https://www.ijtsrd.com/papers/ijtsrd45231.pdf Paper URL: https://www.ijtsrd.com/management/other/45231/customers’-satisfaction-on-ebanking-services-in-indian-banking-sectors/dr-kamaljeet-bhatia
Customer Satisfaction on Banking Services in Indian Growing Economy Nainital ...Dr. Amarjeet Singh
Finance is the energy of every business whether it is
profit making or loss-making business and finance are
required. Economy grows with the developing people of his
country. There is no way to grow the country economy
without financial growing of his resident peoples and banking
sector play a major role to provide financial services. Banks
play a major role in the growth of the economy by providing
their services. Customer satisfaction is essential for the future
growth of both bank and country economy growth also. This
study made to determine customer satisfaction level on
banking services. This study based on primary data. Primary
data collected through questionnaire. The questionnaire
collected from 50 peoples in Kumoun region specially in
Haldwani urban area. All types of people included in sample
collection Students, Employees, Self Employees, and retired
persons. To assess customer satisfaction used the pre-tested
five points Likert's scale test. On the basis of the analysis, it is
concluded that the customer service satisfaction level of banks
is 73.80%.Key Words: Customer satisfaction, Banking
services, Overall satisfaction.
A Study on Customer Perception towards Business Innovation Practices in Tiruc...PARAMASIVANCHELLIAH
A STUDY ON CUSTOMER PERCEPTION TOWARDS BUSINESS INNOVATION
PRACTICES IN TIRUCHIRAPPALLI DISTRICT
Dr.C. PARAMASIVAN, Ph.D.
Assistant Professor of Commerce
&
G. RAVICHANDIRAN
Ph.D. Full Time Research Scholar
PG & Research Department of Commerce
Thanthai Periyar Government Arts and Science College (Autonomous)
(Affiliated to Bharathidasan University, Tiruchirappalli)
Tiruchirappalli - 620023.
A Study on Customer Perception towards Business Innovation Practices in Tiruc...PARAMASIVANCHELLIAH
A STUDY ON CUSTOMER PERCEPTION TOWARDS BUSINESS INNOVATION
PRACTICES IN TIRUCHIRAPPALLI DISTRICT
Dr.C. PARAMASIVAN, Ph.D.
Assistant Professor of Commerce
&
G. RAVICHANDIRAN
Ph.D. Full Time Research Scholar
PG & Research Department of Commerce
Thanthai Periyar Government Arts and Science College (Autonomous)
(Affiliated to Bharathidasan University, Tiruchirappalli)
Tiruchirappalli - 620023.
CUSTOMER PERCEPTIONS AND SATISFACTION TOWARDS HOME LOAN AT PUBLIC BANKS OF TA...IAEME Publication
Tamilnadu has made a rapid stride in the development of urban cooperative banks with an aim to provide adequate and timely financial assistance to help the small entrepreneurs, middle class and weaker sections of the society. The present study was undertaken to analyze the perception of customers towards home loans of Public Banks of Tamilnadu. The paper examined the satisfaction level and problems faced by customers while availing loans. A sample of 100 customers of the bank comprising of public servants, Public sector employees and self-employed from its three branches serving Chennai, Kanchipuram and Thiruvallur Districts has been selected. The research has found that the customers of the bank were highly satisfied with the home loan services in relation to its services, transparency, time taken for loan approval, employee co-operation and query handling, prima facie of some problems like procedural delays, lack of knowledge and red-tapisim. The results further revealed that the main reason for people to prefer this bank is the trust of the customers in the bank, lower interest rates and easy repayable installments.
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This presentation poster infographic delves into the multifaceted impacts of globalization through the lens of Nike, a prominent global brand. It explores how globalization has reshaped Nike's supply chain, marketing strategies, and cultural influence worldwide, examining both the benefits and challenges associated with its global expansion.
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Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
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A comparative analysis of public and private sector banks in india
1. Information and Knowledge Management www.iiste.org
ISSN 2224-5758 (Paper) ISSN 2224-896X (Online)
Vol 2, No.3, 2012
Customer Satisfaction: A Comparative Analysis of Public and
Private Sector Banks in India
Nirmaljeet Virk1* Prabhjot Kaur Mahal2
1. Rayat & Bahra Institute of Management, VPO Sahauran, District Mohali, Punjab, India, 140104
2. Rayat & Bahra Institute of Engineering & Bio-Technology, VPO Sahauran, District Mohali, Punjab, India,
140104
* E-mail of the corresponding author: nirmaljeetvirk@gmail.com
Abstract
As economic globalization intensifies competition and creates a climate of constant change, winning and keeping
customers has become all the more important. Nowadays banks have realized that cost of attracting a new
customer is much more than retaining existing customers, so banks are emphasizing more upon customer
satisfaction. These days customers demand for top quality services and products served with minimum wait time,
so customers prefer techno- savvy banks as well bankers. At this backdrop, the main problem today before the
commercial banks, more particularly the public sector banks in India which were earlier operating in a sheltered
regime after nationalization, is their long-run survival, tapping quality customers and forging way ahead by
retaining their valued customers. The current research paper attempts to make a comparative analysis of level of
customer satisfaction towards services provided by public and private sector banks. The study has been conducted
in Chandigarh city. This study is based on questionnaire method. A sample of 160 customers has been selected
using convenient sampling method. The statistical tests are conducted at 5% and 1% level of significant the main
statistical tools are used. This study concluded that private sector banks are more preferred by majority of the
customer as they emphasize more upon relationship building with their clients and are better equipped with
modern infrastructure as compared to public sector banks.
Keywords: Customer satisfaction, retail banking, service quality, bank’s performance
1. Introduction
The business of banking is as old as the civilization itself. As early as 2,000 B.C., the Babylonians used their
temples for lending at higher rates of interest against gold and silver which had been left with them for safe custody.
In ancient times, the main functions of the banks related to granting of loans to individuals or the state in times of
crisis. Banking institutions during pre-independence period primarily consisted of Indigenous banks, sahukars,
nidhis, loan offices etc. In 1850, the passing of joint stock company act greatly helped in establishment of many
commercial banks. Later on in 1921, the Imperial Bank of India and in 1935 RBI was also established. Banking
business has since evolved many folds to recent techno savvy form.
Banks these days provide a variety of services ranging from opening a savings account to internet banking,
granting loans to selling insurance, providing locker facilities to transferring money abroad. Their customers come
from all classes of society from a salaried group to a Multi National Corporation having its business activities all
around the world. The banks have to satisfy all the customers belonging to different social groups. The banking has
therefore become more complex and requires specialized skills.
People working in banks act as a bridge between the bank and the customer. They are the people who face
customers directly and are the first ones to know what customer actually needs. As a service provider their role
becomes very important in shaping bank’s perception in customer’s mind. As services can make or break a
customer, much emphasis is laid upon service delivery by most of the banks. The link between service quality and
customer satisfaction has been subjected to intense scrutiny by a few service quality researchers (Bolton and Drew,
1994; Bitner and Hubbert, 1994). As survival of the fittest has become the order of today, every bank is trying woe
the best customer who is common for all. Retaining the existing customers and attracting new ones has become all
the more difficult especially for public sector banks (Bhatt, 1990).
At this backdrop, a study on bank’s perception in the mind of customers and comparative analysis of services
of private and public sector bank sounds interesting. Such analysis will provide the banks with a quantitative and
qualitative estimate of their services as perceived by their customers.
1
2. Information and Knowledge Management www.iiste.org
ISSN 2224-5758 (Paper) ISSN 2224-896X (Online)
Vol 2, No.3, 2012
2. Earlier Studies
Comparison of services by banks is under active and extensive discussion among academicians and bank
personnel. Survey and research have been conducted both by academic researchers and practitioners on the various
aspects of services by banks in particular both in India as well as abroad.
2.1 Characteristics of Services
Anne M Smith (1990) studied the four distinguishing characteristics of services - intangibility, inseparability,
heterogeneity and perishability and how it effects clients' perceptions of quality service from banks. The study
revealed that intensifying competition and increasing customer expectations have created a climate where quality
is considered to be a major strategic variable for improving customer satisfaction and thereby contributing to the
profitability of financial service providers.
According to Liang et al (2004), the service quality attributes are of two types; one is product related, and the
other one non-product related. These attributes may create the perception of symbolic, functional or experiential
benefits among customers. The study results strongly highlighted the fact that customer satisfaction positively
affects customer’s trust and commitment on service provider, which in turn affects customer’s behavioral loyalty.
Sarin and Anil (2007) recommended that manpower in service organizations must work with the focus of
satisfying the customer. Banking should bring out the areas requiring improvement and further throws light on the
measures so that customers feel should be adopted in order to improve the quality of services.
According to Laroche and Manning 1986, Location convenience, speed of service, competence and
friendliness of bank personnel scored most of the points with maximum value in banking services.
Aurora and Malhotra (1997) studied the level of customer satisfaction and some marketing strategies in both
private and public sector banks in India. They have found six factors of customer satisfaction in public sector banks,
viz.,routine operations, price, situational, environmental, technology, and interactive. But in private sector banks,
they found seven factors in total, having staff factor as the first ranked and situational factor as the lowest ranked
items. Instead of price factor, promotional factor has been explored by researchers in private sector banks. As
compared to public sector, private sector bank customers’ level of satisfaction is comparatively more. Proper
training and development of bank staff, regular market survey, personalizing the service, efforts to avoid long
queues in bank, and attractive environment are key suggested strategies in public sector bank.
2.2 Customer Needs
Geiger's (1975) carried out study to establish the needs of customers. Social status of the bank's customers and the
perception that the customers had of banks were studied along with customers judgment of the range of services
that the banks had to offer, the effectiveness of various advertising and other sales promoting measures, and the
customers' will to save and other habit. Findings indicated that satisfied customers are more optimistic in nature
than those who are critical of what their banks have to offer them.
Lewis and Birmingham (1991) studied the needs, attitudes and behavior of youth market for financial
services and found that the youth market is not homogenous in terms of needs and behavior.
Boyd et al (1994) conducted a study on consumer choice criteria in financial institution selection in USA and
found that reputation and interest rates of loans as well savings rates are more important than friendliness of
employees, modern facilities and drive - in - service. On the other hand Rajagopla Nair (1994) in his study on rural
bank marketing found that security and liquidity are the major pre-requisites for deposits by rural customers and
that the interest rate on fixed and demand deposits is not at all a criterion for rural bank depositors to deposit their
savings with commercial banks.
Huu Phuong Ta and Kar Yin Har (2000) studied bank selection preferences of undergraduates in Singapore.
In the study, nine criteria for selecting bank and five banks were identified, and the decision problem was
structured into a three-level hierarchy using the Analytic Hierarchy Process. The findings indicated that
undergraduates emphasize more on the pricing and product dimensions of bank service.
Hallowell Roger (1996) studied customer satisfaction in banks and found banks should target and serve only
those customers whose needs it can meet better than its competitors in a profitable manner. By adopting this
strategy customers will be retained for longer periods, consume multiple products; recommend the bank to their
friends and relations who may be the source of superior returns to the bank’s shareholders.
As per Meidan (1976) about 90% of the respondents banked at the branch nearest to their home place and
place of work. Convenience, in terms of location, was found to be the single most important factor for selecting a
bank.
Dutta et al, 2009 conducted a study to investigate perception of expectations of customers across all the banks
2
3. Information and Knowledge Management www.iiste.org
ISSN 2224-5758 (Paper) ISSN 2224-896X (Online)
Vol 2, No.3, 2012
in India. It was found that foreign banks were the most preferred banks followed by private banks and public
banks.
3. Objectives of the Study
1. To identify the banking sector that is largely availed by the customers.
2. To examine the expectations and the level of satisfaction of the customers towards the
services rendered by public and private sector banks.
3. To study the preferences and priorities towards types of services provide by the public
and private sector banks.
4. Research Hypothesis
Ha0: All the selected attributes effect customer satisfaction equally.
Ha1: All the selected attributes effect customer satisfaction differently.
Hb0: There is no difference in satisfaction level of customers in public and private banks.
Hb1: There is significant difference in the satisfaction level of customers in public and private sector banks.
Hc0: The selected attributes of customer satisfaction are uncorrelated.
Hc1: Few of the selected attributes of customer satisfaction are correlated.
5. Methodology and Research Design
The methodology and design adopted for the study is as follows:
5.1 Area of Study
The study has been conducted in Chandigarh city having a population of more than nine lacs. Chandigarh is known
as one of the best experiments in urban planning and modern architecture in the twentieth century in India.
5.2 Period of the Study
The present research study is related to “Customer Satisfaction: A Comparative study of Public and Private
Sector Banks in India”. The survey lasted for about six months.
5.3 Data Collection
This study is based on questionnaire methods. Primary data were collected from men and women respondents
living in Chandigarh city. People from all walks of life were contacted. The total number of respondents was
160.The researchers have covered customers from six banks, three each from public sector and private sector.
Under Public sector banks State Bank of India, Punjab National Bank and Oriental Bank of Commerce were
selected and ICICI, HDFC and Axis Bank were selected among Private Sector Banks.
5.4 Sampling
A sample of 160 customers has been selected using convenient sampling method. The data has been interpreted
satisfactorily whenever and wherever needed.
6. Analysis and Findings
6.1 Reliability Analysis
In this study reliability was examined on all items. As a test of reliability Cronbach’s Alpha was adopted to
represent internal consistency. Table 1, shows the reliability test with all values greater than threshold of 0.60
(Walsh, 1995). Hence it can be conclude that the items reliably measure the defined constructs.
6.2 Comparison between Public and Private Sector Banks Showing the Effect of Banking Services on Customer
Satisfaction
As the descriptive statistics in table 2 shows a significant difference between public and private banks in all the
variables, it was decided to examine whether the differences are significant or not. For this purpose independent
sample t-test was performed. This test is used when there are two experimental conditions and different subjects
were assigned to each condition. Table 2 shows there is significant relationship between all the variables and the
ownership of bank. Table 2 shows that private sector banks are providing better services to customer in terms of
services provided by teller as well relationship with managers. It also shows that private sector banks are providing
better infrastructure facilities as compared to public sector banks. Table 2 shows that customers are more satisfied
with private sector banks as compared to public sector banks when it comes to mutual fund services and telephone
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enquiries. Hence it can be inferred that customer satisfaction is higher in private banks than in public banks. Table
2 also infers that customer satisfaction is largely dependent upon their relationship with senior staff and managers
of the bank.
6.3 Correlation among Attributes Selected for Measuring Customer Satisfaction
Table 3 shows correlation of attributes viz. services offered by teller, relationship with manager, branch facilities,
statement facility, loan services mutual fund services and enquiry on telephone for measuring customer
satisfaction. Table 3 shows that all the attributes are correlated.
6.4 Regression
Table 4 shows multiple correlations between branch facilities and services by teller (0.699), relation with manager
(0.799), mutual fund services (0.581) and telephone enquiry (0.541). This table shows that branch facility is
positively correlated with teller services, relationship with manager, mutual fund services, and telephone enquiry
thus contributing to customer satisfaction.
7. Discussion and Conclusion
The duration of time that a customer spends with his relationship officer or manager is very important. As per the
current data 68% of the customers have been with their respective relationship officer/manager for more than 2
years. This research further strengthens the findings of Tyler and Stanley, 2001 which says that customers give
more importance to their personal relationship with relationship officer/manager rather than the bank they
represented. Thus relationship marketing should be emphasized upon and special training should be provided to all
the corporate staff members in the bank, making them aware about the actual meaning and use of this concept.
Table 2 shows the t-test conducted for the sample. As per table all the values except statement facility and loan
services are significant. According to Hypothesis Hb0 all the selected attributes effect customer satisfaction equally
while the findings of current research shows that the relationship of customers with manager/customer relationship
officer (mean = 27.57) effects customer satisfaction the most. Thus hypothesis Ha0 does not hold good for this
factors and alternative hypothesis Ha1 is accepted.
Further, this research shows that private banks managers are ahead of public banks in making relationship
with their customer thus winning their satisfaction. This can be attributed to the fact that today larger client base in
India is banking with Private sector banks as compared to Public sector banks. Most of the respondents were of the
view that public sector banks are lagging behind in use of modern technology and techno savvy staff. According to
Hypothesis Ha0 there is no difference in satisfaction level of customers in public and private banks but the findings
of current research shows that private sector banks are providing better services in terms of mutual funds, query
resolution through telephone, branch facilities, services by teller and above all customer relations with manager
(all the significant t-values taken). Thus hypothesis Hb0 is rejected and alternative hypothesis Hb1 is accepted.
This research shows that if the facilities in the branch viz. infrastructure, ambience, décor, sitting facility,
signage, etc. are adequate, it not only leads to customer satisfaction but overall improvement in working of the
branch as well whether it is services by teller, managers, loan services or mutual fund services. If all the signage are
in place it will direct the customer to right desk without wasting their time which further helps the service officer in
attending the customers in time and cater to their needs. Table 3 shows correlation of attributes viz. services
offered by teller, relationship with manager, branch facilities, statement facility, loan services mutual fund services
and enquiry on telephone for measuring customer satisfaction. According to hypothesis Hc0 all the selected
attributes of customer satisfaction are uncorrelated while our findings show that all the attributes except loan
services are correlated. Thus hypothesis Hc0 is rejected and alternative hypothesis Hc1 is accepted.
8. Limitations of the Research Study
There is no research study without limitations. There are a few limitations in the present study i.e. “Customer
Satisfaction: A Comparative study of Public and Private Sector Banks in India”. These limitations are
discussed as follows:
1. The researcher believes that the result of this study may be limited in terms of generalization because it refers
only to a single city and this extinguishes the opportunity of making comparison and generalizing to the other parts
of country.
2. The sample of the study consisted of only 160 respondents due to time constraints.
3. The questionnaires were mostly filled by the customers in the presence of bank officials, so it is quite possible
that the respondents may avoid giving negative responses fearing retaliation.
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References
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Bibliography
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Table 1: Results of Reliability Test
Variables Cronbach Alpha
Services by teller 0.67
Relation with Manager 0.89
Branch Facility 0.80
Statement facility 0.65
Loan Services 0.83
Mutual Services 0.72
Telephone Enquiry 0.67
Table 2: Independent sample t-test showing the effect of banking services on customer satisfaction
Variables Mean Standard Deviation t-value
Pub Sector Pvt Sector Pub Sector Pvt Sector
Services by Teller 22.15 23.27 2.89 3.51 2.20**
Relation with Manager 26.87 27.57 4.69 4.55 0.958**
Branch Facility 21.15 22.70 4.02 4.75 2.224**
Statement Facility 16.67 16.30 2.83 3.45 -0.750
Loan Services 27.67 26.40 2.29 4.57 -2.230
Mutual Fund Services 22.26 22.70 2.89 4.60 0.720**
Telephone Enquiry 14.15 14.85 2.89 3.05 1.486**
** Significance at 0.01 levels
* Significance at 0.05 levels
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Table 3: Correlation of attributes selected for measuring customer satisfaction
Services Services Branch Statement Loan Mutual Telephone
by by Facility Facility Services Fund Enquiry
Teller Manager Services
Services by Teller 1
Relation with Manager .759** 1
Branch Facility .699** .799** 1
Statement Facility .370** .640** .475** 1
Loan Services .192* .240** .287** .146 1
Mutual Fund Services .489** .536** .581** .273** .503** 1
Telephone Enquiry .370** .525** .541** .317** .256** .368** 1
** Correlation significant at 0.01 levels
* Correlation significant at 0.05 levels
Table 4: Linear regression of attributes selected for measuring customer satisfaction
Standardized
Adjusted R Coefficient
Variables R R Square T Sign
Square
Beta
Services by Teller 0.699 0.488 0.485 0.195 2.767 0.006**
Relation with Manager 0.799 0.639 0.636 0.476 5.149 0.000**
Statement Facility 0.475 0.226 0.221 0.002 0.039 0.969
Loan Services 0.287 0.082 0.076 0.008 0.164 0.870
Mutual Fund Services 0.581 0.337 0.333 0.168 2.811 0.006**
Telephone Enquiry 0.541 0.293 0.289 0.154 2.925 0.004**
** Correlation significant at 0.01 levels
* Correlation significant at 0.05 levels
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