Professional Documents
Culture Documents
TOWARDS
BANKING SECTOR
Anindita
Anshuman
Bhavna
Prashant
Utkarsh
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Table of Content
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Preface
The Indian banking industry is passing through an exciting growth phase. The
surge in the real economy, which has grown at over 8% in the past three
fiscals, has provided significant growth opportunities for the sector. The rising
personal incomes of the population have provided banks numerous
opportunities for product development and distribution innovations.
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Executive Summary
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Introduction
In consumer behavior this is very difficult to make a uniform theory that may
suggest that a particular individual or group will behave in a particular
manner. Consumer behavior is dynamic and to be studied regularly.
Increasing awareness, living standards and urbanization has led to increase
in the changing preferences and the same has forced the marketers to
change their product features, packaging styles, distribution channels and so
on. There is a famous saying the "Success has a simple formula-Do your best
and people must like it". Similarly, for marketers the advice is- offer the best
and customers must like it'. Identical products always have their life cycle the
product life cycle suggests that there is a level of maturity of the product and
after that no more consumers can be attracted for that. The case is very
same with preferences of consumers that they always like some innovative
and different products to use. The study of consumer behavior is compulsory
to know about likes and dislikes of consumers from time to time so that the
products and services can be offered accordingly. Customers have their own
unique needs, demands and preferences in a particular segment. Marketers
have to study customers in particular segment. Really interesting it is, the
study of consumer behavior can make it possible that after observing and
examining the behavior of consumer a marketer can present his product in
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such a way that the product can capture the market. However it was very
difficult to sell that product earlier. Consumer behavior indeed gives every
possible answer to the complex questions concerned with consumer's buying
reasons.
Introduction of Banking
Services have been the fastest growing segment of the world economy,
particularly in developing countries, creating many opportunities for different
service-related firms . A
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The following diagramme will tell about the all marketing decisions taken in
services industry or banking services. These all are essential decisions which
are concerned are essential ingredients of services marketing mix. The
analysis has been done in the context of banking services.
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When customer is treated as the king of the market, the study of consumer behaviour
becomes more important for marketing decisions. There is no doubt that the behaviour is
the base of marketing decisions.
Review of literature
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1) Mittal, Arun, Advertising and Sales Promotion, Wisdom Publication, New
Delhi, Edition -2008, p-225
During the past few decades, the widely acknowledged importance of service
quality resulted in numerous attempts by researchers, practitioners and
managers, aimed at its conceptualization and measurement. However, this
has been proven to be a difficult task, causing long-lasting debates among
those involved, mainly due to the intangible nature of services and problems
stemming from the simultaneous production and consumption of a service
(Carman, 1990). Despite this controversy, it can be argued that there is a
convergence towards the Parasuraman et al. (1988, p. 16) view that
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customer perceived service quality, is a ‘global judgment or atti- tude,
relating to the superiority of the service.’ Several measuring instruments
have been developed, aiming to capture and explain the service quality
dimensions. There is little doubt that, among these, SERVQUAL is the most
popular, a fact acknowledged even by its critics (e.g. Asubonteng et al.,
1996). SERVQUAL has been developed in a series of stages leading to
consecutively more refined versions (Parasuraman et al., 1985, 1988, 1991,
1994). In the most commonly used version (Parasuraman et al., 1988),
There is very little doubt that there is a causal relationship between customer
perceived service quality and satisfaction. Nevertheless, there is an ongoing
debate in literature on the direction of Total Quality Management 227this
relationship, i.e. whether service quality influences satisfaction or vice versa.
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According to Parasuraman et al. (1988), perceived service quality relates to
long-term and global evaluation of a service, whereas satisfaction is linked to
evaluations of specific service transactions. They pointed out those incidents
of customer satisfaction from their experiences with the provided service
influence the perceptions of service quality. On the other hand, other
researchers (e.g. Cronin & Taylor, 1992; Spreng &McKoy, 1996) have found
that service quality is an antecedent of customer satisfaction. Parasuraman
et al. (1994) moderated this disagreement by attributing the different
perspectives on this issue to the global scope of perceived service quality as
opposed to the transaction-oriented nature of satisfaction. Research on the
relationship between quality and satisfaction in the internet services context
is again at its early stages. However, several scholars advocate that
customer-perceived internet service quality, either overall or specific
dimensions, significantly influences customer satisfaction (e.g. Jun et al.,
2004; Lee & Lin, 2005; Long &McMellon, 2004; Van Iwaarden et al., 2003.
Yang & Fang, 2004; Zhu et al., 2002). This fact resulted in the adherence of
the present study to the proposition made by Lee et al. (2000, p. 222) stating
that ‘customers can evaluate (be sat- isfied/dissatisfied with) an
object/service only after they interpret (perceive) it.
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Objective of the study
To study about the factors that affects the customer overall perception
towards public sector and private sector bank.
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Research Methodology
The scope of the study is to get the first hand knowledge about the
consumer behavior of public sector banks and private sector banks in Greater
Noida. The scope is restricted to study the factors affecting the satisfaction of
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consumers while availing the services in banks in Greater Noida. This is done
to avoid perceptual bias and for providing objectivity to the study.
Research Design
Data Collection
Primary Data
Primary data is that data which is collected for the first time. It is
original in nature in the shape of raw material. For the purpose of collection
of primary data, a well structured questionnaire was framed which was filled
by the respondents. The questionnaire comprises of close ended questions. In
close ended questions dichotomous, ranking, nominal’s scale, checklist
questions and multiple choice questions are used.
Sampling design:
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Data Analysis and Interpretation
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of private and govt. bank. To check the above objective we have used SPSS
tools (ANNOVA)
Hypothesis
Null Hypothesis- There is no significant difference between mean rating for the
private and government banks.
ANNOVA TEST
Between-Subjects Factors
Value Label N
BANK 1 PRIVATE
95
BANK
2 GOVT.BANK 85
INTERPRETATION- This table shows, there are 95 respondent of private bank and
85 respondent of govt. bank.
Descriptive Statistics
Dependent Variable:RITING
BANK Mean Std. Deviation N
PRIVATE BANK 1.95 .749 95
GOVT.BANK 2.87 .828 85
Total 2.38 .911 180
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Tests of Between-Subjects Effects
Dependent Variable:RITING
Type III Sum of
Source Squares df Mean Square F Sig.
a
Corrected Model 38.237 1 38.237 61.698 .000
Intercept 1041.348 1 1041.348 1.680E3 .000
BANK 38.237 1 38.237 61.698 .000
Error 110.313 178 .620
Total 1171.000 180
Corrected Total 148.550 179
In this table we can see the significance level of bank is less than
0.05. It means null hypothesis is rejected.
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INTERPRETATION- our sample is indicating that maximum number of bank
users are between age group 18 to 25 ranges.
Occupation:
Student
Businessman
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INTERPRETATION: maximum number of banking service users in our
sample are the students.
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INTERPRETATION: Maximum numbers of respondents prefer private banks
which are indicated as 53% of consumers are consumers of private bank
followed by Government bank.
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INTERPRETATION: 39% of consumers prefer SBI followed by ICICI bank
indicated at 38%. It means ICICI and SBI leader in Greater Noida area.
a) 1-3
b) 4-7
c) More than 7
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INTERPRETATION: 35% of consumers go for more than 7 transactions in a
month.
a) 1-3
b) 4-7
c) More than 7
INTERPRETATION: 53% of Consumers have to visit the bank for more than 7
times in a month.
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Yes No
(a) High
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(b) Low
High Low
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Government Bank
Private Bank
High Low
Government Bank
Private Bank
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INTERPRETATION: 71% of respondents are satisfied with the value added
services of private banks as compared to Government banks indicating only
29%.
How would you rate product /service offered vs. cost by your Bank?
High Low
Government Bank
Private Bank
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INTERPRETATION: 58% of consumers are satisfied with the private banks as
they are providing good service as per the cost.
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Since our sample was collected from Greater Noida, majority of the
respondents were students mainly in the age group of 18-25.Most of the
respondents used private banks instead of government banks.SBI scored the
highest when it came to acquaint oneself with saving account pattern in
banks ,closely followed by ICICI.As far as number of transactions and visit to
the bank is concerned in one month, majority of them used it more than 7
times .As far as financial services are concerned, majority of them used it.
So, from the findings of the survey we have done, it can be concluded that
customers in this new era does not take whatever is offered to him/her.
Rather it is the customer who decides the fortune of any company by
deciding what company should offer them customers have certainly become
the king.
It has become quite clear that banks have become an important part in every
respondent’s life. Most of them chose private banks as they believe it to be a
better value proposition in terms of better facilities, ATM availability, value
added services etc. It was also seen from the survey that age also played an
important role in deciding which banks to choose, normally people with age
above 35and above showed brand loyalty with banks like SBI probably
because of better brand image and past experience. Thus, it can be clearly
said that age, value, availability, price, product, service played an important
role in deciding which bank to chose.
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Bibliography
www.citehr.com
www.wikipedia.org/
www.psychologytoday.com/
www.managementparadise.com
www.scribd.com
www.nytimes.com
www.consumerpsychologist.com/
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QUESTIONNAIRE
Name……………………………………………………….
1) Occupation:
Student
Businessman
d) 1-3
e) 4-7
f) More than 7
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5) How many times you have to come in a bank
d) 1-3
e) 4-7
f) More than 7
Yes No
Gov. Privat
Bank e
Bank
Service is always provided in appropriate time?
Staff members are helpful ?
Do you think that the members are interested in understanding
your needs
The information given by them is clear and easy to understand?
I was treated in a friendly, courteous and helpful manner.
Letters and Brochures are easy to understand(customer friendly)?
My queries are attended promptly and I’m satisfied with the
response I receive.
8) Does Private Banks provide better facilities than Government
Banks?
(a) High
(b) Low
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High Low
Government Bank
Private Bank
High Low
Government Bank
Private Bank
11) How would you rate product /service offered vs. cost by your Bank?
High Low
Government Bank
Private Bank
12) If you have rate bank according to the level of satisfaction what will
rate them in scale of 1 to 5.
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