INTRODUCTION

Customer perception is a marketing concept that encompasses a customer's

impression, awareness and/or consciousness about a company or its offerings.
Customer perception is typically affected by advertising, reviews, public relations,
social media, personal experiences and other channels. Consumers can evaluate a
product along several levels. Its basic characteristics are inherent to the generic
version of the product and are defined as the fundamental advantages it can offer to a
customer. Generic products can be made distinct by adding value through extra
features, such as quality or performance enhancements. The final level of consumer
perception involves augmented properties, which offer less tangible benefits, such as
customer assistance, maintenance services, training, or appealing payment options. In
terms of competition with other products and companies, consumers greatly value
these added benefits when making a purchasing decision, making it important for
manufacturers to understand the notion of a total package when marketing to their
customers. For example, when manufacturing automotive parts, a high-performing
product will provide the customer base with basic benefits, while adding spare parts,
technical assistance, and skill training will offer enhanced properties to create a total
package with increased appeal to consumers.
Perception is not good or bad, right or wrong, it is just the way someone judges an
experience based on their value system of what they believe should happen. Since
people are unique, each of their perceptions are unique .On the other hand each
situation is a "point of contact" with an employee that will tell the customer a "truth"
about the company's idea of customer service. Each situation will create expectations
of what the next experience will probably be like. Companies spend considerable
amount on advertisement and in this world of competitive advantage advertisement
has to be repetitive in nature. Brand hammering results in brand recall which is a
costly affair. So companies need to understand the Customer.

NEED OF THE STUDY

The products and services that an industrial company has to offer are generally
organized around its customers needs in addition to the level of expertise and
production capabilities of the firm. Creating a strategy for product development is an
important and often multifaceted segment of running a successful enterprise, and it
brings together a range of different principles, such as research and development,
marketing, engineering, design, materials, and manufacturing. In most cases, an
industrial product development strategy will depend on two main goals: keeping the
new product or product line within the companys overall objectives and marketing
philosophy, and developing a system for assessing the performance of an existing
product.
Consumers and their perception play a vital role in determining marketing
strategies to be adopted by telecommunication service providers. All segments in
telecommunication industry are facing challenging on account of either oversupply or
price wars or a shift in consumers preference. Consumer perception is simply a subset
of large field of human behavior. Knowing customer is never simple because they
state their needs, wants but act otherwise. Marketers must study their target
consumers in view an attempt will be made by enquiring the issues relating to the
market share of ICICI Bank credit cards in Hyderabad.

OBJECTIVES OF THE PROJECT

2

The primary objective of the report is categorized into following sub-topics:

1.
2.
3.
4.
5.
6.

To study the demographic factors of credit card holders.

To know the using purpose of credit card by the holders.
To assess the behavioural changes of credit card holders.
To examine the consumption pattern of credit card holders.
To find out the satisfaction level of existing credit card holders.
To suggest measures to improve the credit card system in India

SCOPE OF THE STUDY

All the questions have been analysed by adding up the responses against each
alternative and answers from the various respondents. The collected data has been
3

subject to statistical analysis to draw inferences and suitable conclusions. The study is
limited to the analysis of customer perception on credit cards by ICICI Bank,
Hyderabad.

RESEARCH METHODOLOGY:
The study is based on primary data, which has been collected from the credit card
users with the help of a well drafted and structured questionnaire (see annexure). For

the collection of primary data, we have confined ourselves to Hyderabad, India. Our
sample consists of a total of 100 respondents.
The respondents are basically credit card users, who have been selected by following
the non-probabilistic sampling, simple purposive sampling and convenience sampling
techniques.
Further, it is essential to mention two things: firstly, in convenience-sampling,
respondents (who were seen using/have possession of credit cards) were selected
because they happened to be in the right place at the right time and secondly,
convenience sampling technique is not recommended for descriptive or casual
research, but they can be used in exploratory research for the generation of ideas
SOURCES OF DATA
Primary sources
Primary data has been collected through the structured questionnaire consisting
mainly of the closed ended questions.
Secondary sources
Secondary data has been collected from the internet, journals, reference books etc.
Sampling Plan
Target Population: Credit Card holders
Sample Size: 100 respondents
Sampling technique: Convenience sampling

Research Design
The research design that has been used is Descriptive Research.
Involves gathering data that describe events and then organizes, tabulates,

depicts, and describes the data.

Uses description as a tool to organize data into patterns that emerge during
5

analysis.
Often uses visual aids such as graphs and charts to aid the reader

LIMITATIONS OF THE STUDY

1. The study is confined to the city of Hyderabad only.
2. The respondents were generally co-operative, yet some of them might have
biased their reply for certain sensitive questions

3. The duration of the study is also in accordance with the academic objective of
the course curriculum. So in pursuit of academic exercise, the restriction on
time has also brought into study some limitations.

INTRODUCTION TO BANKING INDUSTRY

Banking in India originated in the last decades of the 18th century. The oldest bank in
existence in India is the State Bank of India, a government-owned bank that traces its
origins back to June 1806 and that is the largest commercial bank in the country.
Central banking is the responsibility of the Reserve Bank of India, which in 1935
formally took over these responsibilities from the then Imperial Bank of India,
relegating it to commercial banking functions. After India's independence in 1947, the
Reserve Bank was nationalized and given broader powers. In 1969 the government
nationalized the 14 largest commercial banks; the government nationalized the six
next largest in 1980.
The Indian Banking industry, which is governed by the Banking Regulation Act of
India, 1949 can be broadly classified into two major categories, non-scheduled banks
and scheduled banks. Scheduled banks comprise commercial banks and the cooperative banks. In terms of ownership, commercial banks can be further grouped into
nationalized banks, the State Bank of India and its group banks, regional rural banks
and private sector banks (the old/ new domestic and foreign). These banks have over
67,000 branches spread across the country.
The first phase of financial reforms resulted in the nationalization of 14 major banks
in 1969 and resulted in a shift from Class banking to Mass banking. This in turn
resulted in a significant growth in the geographical coverage of banks. Every bank
had to earmark a minimum percentage of their loan portfolio to sectors identified as
priority sectors. The manufacturing sector also grew during the 1970s in protected
environs and the banking sector was a critical source. The next wave of reforms saw
the nationalization of 6 more commercial banks in 1980. Since then the number of
scheduled commercial banks increased four-fold and the number of bank branches
increased eight-fold.
After the second phase of financial sector reforms and liberalization of the sector in
the early nineties, the Public Sector Banks (PSB) s found it extremely difficult to
compete with the new private sector banks and the foreign banks. The new private
8

sector banks first made their appearance after the guidelines permitting them were
issued in January 1993. Eight new private sector banks are presently in operation.
These banks due to their late start have access to state-of-the-art technology, which in
turn helps them to save on manpower costs and provide better services.
Aggregate Performance of the Banking Industry
Aggregate deposits of scheduled commercial banks increased at a compounded annual
average growth rate (CAGR) of 17.8 percent during 1969-99, while bank credit
expanded at a CAGR of 16.3 percent per annum. Banks investments in government
and other approved securities recorded a CAGR of 18.8 percent per annum during the
same period.
In FY01 the economic slowdown resulted in a Gross Domestic Product (GDP) growth
of only 6.0 percent as against the previous years 6.4 percent. The WPI Index (a
measure of inflation) increased by 7.1 percent as against 3.3 percent in FY00.
Similarly, money supply (M3) grew by around 16.2 percent as against 14.6 percent a
year ago.
Interest Rate Scene
The two years, post the East Asian crises in 1997-98 saw a climb in the global interest
rates. It was only in the latter half of FY01 that the US Fed cut interest rates. India has
however remained more or less insulated. The past 2 years in our country was
characterized by a mounting intention of the Reserve Bank of India (RBI) to steadily
reduce interest rates resulting in a narrowing differential between global and domestic
rates.
Government initiatives
During 2008-09 (as per data up to November 18, 2008), as per RBI guidelines,
scheduled commercial banks (SCBs) increased their deposit rates for various
maturities by 50-175 basis points. The interest rates range offered by public sector
banks (PSBs) on deposits of maturity of one year to three years increased to 9.0010.50 per cent in November 2008 from 8.25-9.25 per cent in March 2008. On the
9

lending side, the benchmark prime lending rates (BPLRs) of PSBs increased to 13.0014.75 per cent by November 2008 from 12.25-13.50 per cent in March 2008. Private
sector banks and foreign banks also increased their BPLR to 13.00-17.75 per cent and
10.00-17.00 per cent from 13.00-16.50 per cent and 10.00-15.50 per cent,
respectively, during the same period.
Bank initiatives
Since December 2008, the government has announced series of measures to augment
flow of credits to around US$ 2, 66,274 to SMEs. To improve the flow of credit to
industrial clusters and facilitate their overall development, 15 banks operating in
Orissa including the public sector State Bank of India (SBI) and the Small Industries
Development Bank of India (SIDBI) have adopted 48 clusters specially in sectors like
engineering tools, foundry, handloom, food processing, weaving, rice mill, cashew
processing, pharmaceuticals, bell metals and carpentry etc.
Recent Banking Development in India
The Indian banking sector has witnessed wide ranging changes under the influence of
the financial sector reforms initiated during the early 1990s. The approach to such
reforms in India has been one of gradual and non-disruptive progress through a
consultative process. The emphasis has been on deregulation and opening up the
banking sector to market forces. The Reserve Bank has been consistently working
towards the establishment of an enabling regulatory framework with prompt an
effective supervision as well as the development of technological and institutional
infrastructure.
Statutory Pre-emptions
In the pre-reforms phase, the Indian banking system operated with a high level of
statutory preemptions, in the form of both the Cash Reserve Ratio (CRR) and the
Statutory Liquidity Ratio (SLR), reflecting the high level of the countrys fiscal deficit
and its high degree of monetisation. Efforts in the recent period have been focused on
lowering both the CRR and SLR. The statutory minimum of 25 per cent for the SLR
was reached as early as 1997, and while the Reserve Bank continues to pursue its
10

medium-term objective of reducing the CRR to the statutory minimum level of 3.0 per
cent, the CRR of the Scheduled Commercial Banks (SCBs) is currently placed at 5.0
per cent of NDTL (net demand and time liabilities). The legislative changes proposed
by the Government in the Union Budget, 2005-06 to remove the limits on the SLR
and CRR are expected to provide freedom to the Reserve Bank in the conduct of
monetary policy and also lend further flexibility to the banking system in the
deployment of resources.

CREDIT CARDS IN INDIA

Credit card or the plastic money, as it is popularly referred to, was slow to enter the
Indian market because of the high sentimental value that Indian consumers attach to
hard cash. Prevalence of small value transaction, credit shy culture and inadequate
banking habits of the population were other hindrances.
Credit cards arrived in India about two decades ago. In the early stages its growth was
very slow in terms of number and value. Even the number of players was limited and
mainly foreign banks like HSBC, Citibank and Standard Chartered Bank dominated
the market. Indian banks did not show much interest in the product in the initial
stages. This is evident from the fact that it took State Bank of India (SBI), Indias
largest bank, almost a decade to begin dealing in credit cards. SBI, despite its
widespread reach, has aggressively started promoting credit cards only three years
ago.
However, in the recent past the scenario has changed dramatically. The number of
nationalized and private banks issuing credit cards has increased significantly. Credit
cards are now not only integral parts of the consumers life in metros, but even
residents of smaller cities and towns have taken to them. This can be attributed to the
aggressive strategy of nationalized and private banks to promote card products in
smaller town and cities. These banks have far wider reach and depth in smaller cities
and town as compared to foreign banks. They have capitalized on this advantage to
play a major role in expanding the credit card base in terms of number and usage in
smaller cities and town.

11

Transactions using plastic money involve the payment of a small fee to the issuing
bank in the form of an application/joining fee and an annual fee. Consumers collect a
percentage-based commission in the form of reward points for card usage at
shops/establishments. The usage of credit card is very simple and easy. The
consumers do not have to carry cash and can use the card to pay their
shopping/restaurant bills. All you are required to do is give your credit card at the
payment counter, the person handling the counter swipes the card into the system to
check the details of the card and you need to sign on the bill. The payment is done
electronically. With only a signature your payment is taken care of. Isnt it very
simple?
Yes it is, but everyone isnt eligible for a credit card. There are certain requirements,
varying across banks, to get a credit card. Typically credit card companies (or issuing
banks, as they are known) require the applicant to have a minimum income level
before he can apply for the card. Proof of income is given by way of documents.
These documents could be a copy of tax return filed; salary slips if applicable, balance
sheet and profit and loss account detail if you are self-employed. These serve as the
starting point while applying for a card. The minimum income level varies from bank
to bank and fluctuates between Rs 60,000 - 150,000 per annum depending upon your
risk profile and the type of card. This requirement helps the issuing bank to assess
whether or not you will be able to repay the expenses incurred through your credit
card. In addition to income eligibility, you need to be at least 21 years of age
(maximum 65 years).
There is no doubt that credit cards are very convenient, especially in case of daily
expenses. In addition you earn bonus points while you spend via the card. It is
because of these reasons that in the recent past card usage has increased dramatically.
In fact, plastic currency has almost wiped off hard currency from the US, resulting in
far less expenditure associated with cash transactions.
Currently, four major bishops are ruling the card empire - Citibank, Standard
Chartered Bank, HSBC and State Bank of India (SBI). The industry, which is catering
to over 3.8 million1 card users, is expected to double by the fiscal 2003. According to
a study conducted by State Bank of India, Citibank is the dominant player, having
12

issued 1.5 million cards so far. Standard Chartered Bank follows way behind with
0.67 million, while Hongkong Bank has 0.3 million credit card customers. Among the
nationalized banks, SBI tops the list with 0.28 million cards, followed by Bank of
Baroda at 0.22 million.

COMPANY PROFILE
ICICI Bank is India's second-largest bank with total assets of Rs. 3,997.95 billion
(US$ 100 billion) at March 31, 2008 and profit after tax of Rs. 41.58 billion for the
year ended on March 31, 2008. ICICI Bank is the second amongst all the companies
listed on the Indian stock exchanges in terms of free float market capitalisation. The
Bank has a network of about 1,308 branches and 3,950 ATMs in India and a presence
in 18 countries. ICICI Bank offers a wide range of banking products and financial
services to corporate and retail customers through a variety of delivery channels and
through its specialised subsidiaries and affiliates in the areas of investment banking,
life and non-life insurance, venture capital and asset management or wealth
management. The Bank currently has its subsidiaries in the United Kingdom, Russia
and Canada, branches in Unites States, Singapore, Bahrain, Hong Kong, Sri Lanka,
Qatar and Dubai International Finance Centre and representative offices in United
Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia.
The banks UK subsidiary has established branches in Belgium and Germany.
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange (BSE) and
the National Stock Exchange of India Limited and its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange (NYSE).
Vision of ICICI Bank:

13

Over the last few years, the ICICI Bank has taken rapid strides in developing new
businesses in line with its proposition to offer complete financial services to both
corporate and retail customers.
With the recent addition of insurance, the proposition of ICICI Bank is now fulfilled.
Going forward, the challenge for ICICI will be to continue innovating to improve
market shares and maintain its competitive edge. In this endeavour, ICICI will
continue to benchmark with global best practices to ensure optimum utilization of its
resources and the finest exposure to its work force. The speed with which it has been
able to transform the organization and successfully start so many new businesses is
almost singularly owing to the skills, enterprise and the depth of its human resources.
ICICI Bank is committed to enriching this valuable resource which in turn, will allow
it to bring innovative practices to the world of financial services in India. With
technology playing the key role mainly.
The vision is to develop ICICI Bank into an organization that is empowered by bright
and talented individuals, working in teams and riding on the backbone of world class
technology.

14

History
The ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian
financial institution, and was its wholly owned subsidiary. ICICI's shareholding in
ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal
year 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal year
2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock
amalgamation in fiscal year 2001, and secondary market sales by ICICI to
institutional investors in fiscal year 2001 and fiscal year 2002. ICICI was formed in
year 1955 at the initiative of the World Bank, the Government of India and
representatives of Indian industry. The principal objective was to create a
development financial institution for providing the medium-term and long-term
project financing to Indian businesses. In the 1990s, the ICICI transformed its
business from a development financial institution offering only single project finance
to a diversified financial services group offering a wide variety of products and
services, both directly and through a number of subsidiaries and affiliates like ICICI
Bank. In 1999, the ICICI become the first Indian company and the first bank or
financial institution from non-Japan Asia to be listed on the New York Stock
Exchange (NYSE).
After consideration of various corporate structuring alternatives in the context of the
emerging competitive scenario in the Indian banking industry, and the move towards
universal banking scenario, the managements of the ICICI and ICICI Bank formed the
view that the merger of ICICI with ICICI Bank would be the optimal strategic
alternative for both of the entities, and would create the optimal legal structure for the
ICICI group's universal banking strategy. The merger would enhance value for the
ICICI shareholders through the merged entity's access to low-cost deposits, much
greater opportunities for earning fee-based income and the ability to participate in the
payments system and provide transaction-banking services. The merger would
enhance value for the ICICI Bank shareholders through a large capital base and scale
of operations, seamless access to ICICI's strong corporate relationships built up over
five decades, entry into new business segments, higher market share in various
business segments, particularly fee-based services, and access to the vast talent pool
15

of the ICICI and its number of subsidiaries. In October 2001, the Boards of Directors
of the ICICI and ICICI Bank approved the merger of ICICI and two of its wholly
owned retail finance subsidiaries, the ICICI Personal Financial Services Limited and
the ICICI Capital Services Limited, with the ICICI Bank. The merger was approved
by shareholders of the ICICI and ICICI Bank in January 2002, by the High Court of
Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at
Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the
ICICI group's financing and banking operations, both the wholesale and retail, have
been integrated in a single i.e. the ICICI Bank.

MARKETING STRATEGIES
ICICI Bank uses the concept of Universal Banking.
Universal Banking Concept:
In universal banking, large banks operate extensively in networks of branches,
provide many different services, hold several claims on firms (including equity and
debt), and participate directly in the corporate governance of firms that rely on the
banks for funding or as insurance underwriters. It means the ability to offer i.e. sell
and underwrite all the types of products and services to any set of clients, either
through a single or through a group of companies. The practice of Universal Banking
varies across several countries. India faces a very high regulatory burden although
now a conglomerate structure of the universal banking has already been permitted
.Many international players like ABN-AMRO, Citigroup, HSBC, Deutsche Bank, JP
Morgan Chase, Lehman Brothers have realized the benefits of Universal Banking.
The ICICI Bank has also joined these international players. The ICICI Bank functions
as a universal bank through itself and its associate companies in the areas of corporate
finance, commercial banking, personal banking, investment banking, asset
management, investor services and insurance. The Universal Banking provides
competitive advantage in the current scenario through large product suite, diversified
resource base, Economies of scale and scope, Optimization of human and financial
capital.
16

In a span of just four years, the ICICI Bank has emerged as a consumer banking
behemoth. With a retail book of over Rs 56,000 crores (Rs 560 billion) and a market
share that is the envy of competition -- it has a share of over 30 per cent The ICICI
Bank today has reached a commanding position.
The bank boasts of the widest integrated technology platform in the country and only
a fourth of its business takes place at its branches and subsidiaries.
Its legacy of non-performing assets (NPAs) -- for which it has been rated below its
peers earlier -- is now almost history with net NPLs (non-performing loans) down to 2
per cent.
Armed with a much stronger balance sheet, the ICICI Bank is aggressively foraying
into overseas markets and also has an eye on the rural India.
Rural India is an opportunity, somewhat premature, but in the next 12-18 months the
banks strategy will be seen there. Bank is looking at new agri lending as something
that is directed; it's a viable business proposition, but it has to be driven very carefully.
The bank can't have branches there because that is not workable in terms of costs.
The solution to this problem is to partner with the micro-credit institutions, corporate
providing inputs or buying products from the farmer and self-help groups.
Major Steps Taken:
In 2001 ICICI acquired the Bank of Madura (est. In 1943). The Bank of Madura was
a Chettiar bank, and had acquired the Chettinad Mercantile Bank (est. In 1933) and
the Illanji Bank (est. in 1904) in the 1960s.
In 2007 ICICI amalgamated the Sangli Bank, which was headquartered in Sangli, in
Maharashtra State, and which had 158 branches in Maharashtra state and another 31
in Karnataka State. ICICI also received permission from the government of Qatar to
open a branch in Doha and from the US Federal Reserve to open a branch in New
York city. ICICI Bank Eurasia opened a second branch in St. Petersburg.

17

In 2008 the ICICI Bank launched iMobile, a comprehensive Mobile banking

solution. iMobile is considered to be a breakthrough innovation in the Indian Banking
which allows a customer to do all possible transactions through a GPRS-enabled
mobile phone easily and conveniently.
Global Market Strategy:
The global opportunity spectrum is changing dramatically, and in the next three years,
the banks global business will contribute one-third of the book top line and bottomline. Today it's about only 10-12 per cent. The NRI (people living abroad) is a great
customer and the other is the Indian corporate who is globalising -- either in the trade
business or is setting up businesses abroad.
Banks USP (unique selling proposition) is a unique technology; it can get customers
to talk to his constituents online. The NRI is an interesting link because today he has
tremendous needs in India; he wants to remit money, purchase a commodity, buy a
home, especially the H1 visa guys. This year 10 per cent of the home loans will be
lended to NRIs.
In the United Kingdom the ICICI bank have a partnership with Lloyds Bank and are
present in 30 branches there, promoting joint products, and they get new customers.
In the United States the ICICI bank have a tie-up with Wells Fargo and their
customers can start a remittance into India from any channel.

18

ADVERTISING STRATEGY:
Amitabh Bachchan as brand ambassador of ICICI:
Under the agreement, Mr. Amitabh Bachchan endorsed and promoted all the products
and services offered by ICICI and its Group companies for a period of two years.
During his term as the brand ambassador, he played a key role in all major brand and
product communication by ICICI. He endorsed the ICICI brand through corporate and
product campaigns on television, print and outdoor medium. Mr. Bachchan also
participated in select events such as new product launches, various campaigns, and
customer reward programmes etc.
ShahRukh Khan as global brand ambassador of ICICI:
After Mr. Bachchan the ICICI Bank has decided to resort to the celebrity endorsement
route to promote its brand. Almost two-and-a-half years since superstar Amitabh
Bachchan endorsed the ICICI brand, the company has signed up Shah Rukh Khan as
19

its global ambassador. Shah Rukh Khan whose increasing global popularity gives
synergy to the growing global presence of ICICI Bank.
Shahrukh Khan is a truly global Indian who embodies the Indian winning spirit in a
true sense. The energy and innovation which Shahrukh Khan represents coupled with
his popularity both in India and abroad make him the ideal choice for the ICICI Bank,
particularly as the Bank makes its global forays. Within a short span of four years, the
ICICI Bank has established its presence in 12 countries including UK, Canada, US
and the Middle East.

PRODUCT OFFERINGS

20

1) DEPOSITS
ICICI Bank offers wide variety of Deposit Products to suit the
requirements of the customers. Convenience of networked branches/ ATMs
and facility of E-channels like Internet and Mobile Banking.
a) Savings Account : A Savings Account for everyone with a host of
convenient features and banking channels to transact through. So now
people can bank at their convenience, without the stress of waiting in
queues. ICICI service savings accounts with 8 to 8 banking and out of
branch banking.
b) Life Plus Senior Citizens Savings Account :
ICICI Bank understand that a Savings Account needs to do more after
people reach the age of seniority; the bank understand customers concerns
for safety and security. The bank has an ideal Savings Bank Service for
those who are 60 years and above. The Senior Citizen Services from
ICICI Bank has several advantages that are tailored to bring more
convenience and enjoyment in their life.
c) Young Stars Savings Account :
It's really important to help children learn the value of finances and money
management at an early age. Banking is a serious business, but ICICI
make banking a pleasure and at the same time fun. Children learn how to
manage their personal finances.
d) Fixed Deposits :
ICICI provides Safety, Flexibility, Liquidity and Returns in the case of
fixed deposits.
A combination of unbeatable features of the Fixed Deposit from ICICI
Bank.
e) Recurring Deposits
21

When expenses are high, people may not have adequate funds to make big
investments. An ICICI Bank Recurring Deposit lets the customers
invest small amounts of money every month that ends up with a large
saving on maturity. So the customers enjoy twin advantages- affordability
and higher earnings.
f) Easy Receive Savings Account :
Easy receive account is a unique savings account that caters to domestic
banking needs, while offering additional benefits for remittances received
in the account from abroad.
2) Loans: ICICI Bank offers wide variety of Loans Products to suit your
requirements. Coupled with convenience of networked branches/ ATMs and
facility of E-channels like Internet and Mobile Banking, ICICI Bank brings
banking at customers doorstep.
a) Home Loans:
The No. 1 Home Loans Provider in the country, ICICI Bank Home Loans
offers some unbeatable benefits to its customers - Doorstep Service,
Simplified Documentation and Guidance throughout the Process.
b) Personal Loans:
If customers wants personal loan that's easy to get with the help of ICICI
Bank. ICICI Bank Personal Loans are easy to get and absolutely hassle free.
With minimum documentation people can now secure a loan for an amount up
to Rs. 15 lakhs.
c) Car Loans:
ICICI Bank is the No. 1 financier for car loans in the country. It has network
of more than 2500 channel partners in over 1000 locations. It has tie-ups with
all leading automobile manufacturers to ensure the best deals. A number of
flexible schemes & quick processing are available. Hassle-free application
process is available on the click of a mouse.
22

d) Commercial Vehicle Loans:

Range of services on existing loans & extended products like funding of new
vehicles, refinance on used vehicles, balance transfer on high cost loans, top
up on existing loans, extend product, working capital loans & other banking
products.
Two Wheeler Loans
Customers can avail attractive schemes at competitive interest rates from the No 1
Financier for Two Wheeler Loans in the country. There is finance facility up to 90%
of the On Road Cost of the vehicle, repayable in convenient repayment options and
comfortable tenors from 6 months to 36 months.
e) Farm Equipment Loans:
ICICI is the preferred financier for almost all leading tractor manufacturers in
the country. There is flexible repayment options in tandem with the farmer's
seasonal liquidity. They can choose from Monthly, Quarterly and Half-yearly
repayment patterns. There are comfortable repayment tenures from 1 year to 9
years.
f) Business Instalment Loans:
Business Instalment Loan (BIL) by ICICI Bank helps the entities take giant
strides by fulfilling their business requirements, be it working capital
requirement, business expansion or to grab that once in a lifetime business
opportunity.

3) CARDS:
ICICI Bank offers a variety of cards to suit different transactional needs of its
customers. Its range includes Credit Cards, Debit Cards and Prepaid cards. These
23

cards offer customers convenience for their financial transactions like cash
withdrawal, shopping and travel. These cards are widely accepted both in India and
abroad.
a) Credit Cards:
Credit Cards give customers a smart way to shop, and offer them flexibility and
convenience in managing their finances. ICICI Bank credit cards provide a host of
exciting offers and benefits to the customers such as low interest rates, rewards
programs, and a high credit and cash limit. The bank offer different types of credit
cards to suit the different needs and requirements for added features
b) Travel Cards:
The travellers card is the Hassle Free way to Travel the world. Customers travelling
with US Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and
convenience; can opt for ICICI Bank Travel Card. It is issued in duplicate. It offers
Pin based security and has the convenience of usage of Credit or Debit card.
Alliance Products:
1) Wells Fargo, USA
ICICI Bank has joined hands with Wells Fargo to bring customers unprecedented
convenience for sending money to India. Customers can just call or walk into any
Wells Fargo branch and send money to anyone having an eligible ICICI bank account.
Customers just need to enrol in the Wells Fargo Express Send Global Remittance
Service to India to be able to transfer money from your eligible Wells Fargo checking
or savings account to the beneficiary's ICICI bank account. Clients transferred funds
will be available in the beneficiary's ICICI bank account as soon as the next business
day.
To avail of this economical, convenient and dependable way to send money home to
India, just open a Wells Fargo Express Send Service Agreement and ensure that the
beneficiary has an eligible account with ICICI bank.
24

Benefits
a) Fast The money will reach India in a days time
b) Convenient Customer get 24-hour access to Wells Fargo branches and telephone
banking services across the USA
c) Nominal charges Flat fee of as low as $5 to send up to $3,000 per day. Customer
may even be eligible for a waiver of this fee based on the account relationship with
Wells Fargo.
d) No monthly or annual service fees or setup fee for the Wells Fargo Express Send
Service
e) Competitive exchange rates The customer can get the latest rates by calling
Wells Fargo at 1-800-556-0605.
2) Lloyds TSB - India Banking Service
India Banking Service is collaboration between ICICI Bank and Lloyds TSB, offering
people of Indian origin living in the UK access to a wide network of branches and
ATMs across India and the UK. Customers can now manage their accounts in the UK
and India from a single, convenient location.
a) Convenience of opening ICICI Bank NRE Accounts at participating Lloyds
TSB branches.
b) Access to the ICICI Bank account to family members in India
c) Easy Money Transfers at nominal costs
d) Fast transactions - within 4 working days

Corporate Banking:

25

ICICI Bank offer corporate a wide range of products and services, the technologies to
leverage them anytime, anywhere and the expertise to customize them to clientspecific requirements.
From cash management to corporate finance, from forex to acquisition financing,
ICICI bank provide the customers with end-to-end services for all your banking
needs. The result is an overall financial solution for the company that helps customers
accomplishes their objectives.
1) ICICI Bank can guide people through the universe of strategic alternatives from identifying potential merger or acquisition targets to realigning their
business' capital structure.
2) ICICI Bank has been the foremost arrangers of acquisition finance for cross
border transactions and is the preferred financer for acquisitions by Indian
companies in overseas markets.
3) The Bank has also developed Forex risk hedging products for clients after
comprehensive Research of the risks a corporate body is exposed to, e.g.,
Interest Rate, Forex, Commodity Credit Risk, etc.
4) ICICI bank offer the customers global services through their correspondent
banking relationship with 950 foreign banks and maintain a NOSTRO
account in 19 currencies to Service people better and have strong ties with
the neighbouring countries.
5) ICICI Bank is the leading collecting bankers to Public & Private
Placement/ Mutual Funds/ Capital Gains Bonds issues. Besides, the bank
have products specially designed for the financial intermediaries to meet their
unique requirements.
6) ICICI support customers international business by meeting working capital
requirements of export and import financing. The Bank also has a host of nonfunded services for their clients.

26

7) Whatever customers industry, size or financial requirements, ICICI Bank has

the expertise and the solutions to partner them all the way.
Transaction Banking
The Bank delivers world class banking services to the financial sector clients. ICICIs
current roaming accounts empower people with 'Anytime, Anywhere Banking'. They
are designed for the customers convenience. The comprehensive collection and
payment services span India's largest CMS network of over 4,500 branches. The bank
provides correspondent banking tie-ups with foreign banks to assist them in their
India-related businesses.
Buyouts
As a part of a risk-diversification and portfolio-churning strategy, ICICI Bank offers
buyouts of the assets of its financial sector clients.
Resources
The Bank also raises resources, from clients, for internal use by issuing a gamut of
products, which run from Certificates of Deposit (CDs) to Term deposits to Term
Loans.
Financial Institution:
ICICI Bank services the financial sector for the entire set of banking requirements and
provides a complete range of solutions. The Financial Institutions and Syndication
Group (FISG) are responsible for ICICI Bank's relationship with the financial sector.
Under this umbrella, the Bank caters exclusively to the needs of:
1) Different domestic financial Institutions
2) Banks
3) Insurance Companies
4) Mutual Funds
27

5) Fund Accounting
The FISG has built strong relationships through various interactive measures, like
seminars, training programs, sharing of market information and views with clients,
organizing the Bank CEOs' Forum, etc.
Government Sector:
The Bank aim to leverage their superior technology platform and on their ability to
deliver solutions customized to meet the specific needs of each client to emerge as the
preferred banker for all government departments and government corporations.
Services to the Government Sector:
ICICI Bank acts as bankers to several government organisations. They have a wide
range of services designed to serve the government sector. Their dedicated
relationship managers have the requisite experience and training to look after their
unique needs.

SME BANKING:
Clients business now has end to end solutions on which one can depend. From the
anytime anywhere convenience of Roaming Current Account to forex remittance
services that simplify and speed up the business.

28

Current Account:
Roaming Current Account:
With the Roaming Current Account (RCA), customers can enjoy the convenience of
Anytime Anywhere banking. They can operate their RCA from any ICICI Bank
branch in any city. RCA offers a wide range of variants that include:
Standard
Classic
Premium
Gold
Gold Plus
Platinum
These variants are based on committed Quarterly Average Balance with differential
charges applicable to each variant. Customers can choose the variant most suitable for
their business requirements. They even have the flexibility of changing their current
account variant every quarter based on their changing business needs. It also offers
29

the facilities of International Business Banking Debit Card, Internet Banking, Phone
Banking, E-mail Banking & Mobile Banking.
Services:
ICICI Bank offers products and services tailored to meet customers industry's unique
needs.
1) Automotive:
The automotive sector in India is booming as Indians take to cars and two-wheelers
like never before. The worlds biggest brands are already here, with many more to
follow. India is also fast becoming an important manufacturing hub for the major
players in the world. Their OEM suppliers are also following in their footsteps to set
up base in India.
Recognising the unique needs of automotive & auto component manufacturers, ICICI
Bank has set up a team of automotive specialists who can tailor-make a solution that
suits customers business.
The banks long-term relationships with leading auto-manufacturers ensure customers
get the quickest turnaround times possible, with the network of more than over 600
branches and 1800 ATMs giving them 24/7 accessibility. A single-window access to
all the banking solutions customers may need ensures quick approvals and minimal
paperwork. ICICIs modern approach to business banking backed by their superior
technology helps provide swift anytime, anywhere banking services via our
branch/ATM network, phone, mobile and Internet.
With a Relationship Manager always at customers beck and call, there will be
nothing to stop customers business from speeding ahead.

2) Construction:

30

The Indian economy is growing at a rapid pace. Predictably, the construction sector
estimated at Rs. 3, 00,000 crores is booming as well, be it infrastructure or
commercial retail and residential space. An outlay of over Rs. 18, 00,000 crores is
projected over the next 10 years.
ICICI Bank has pulled out all stops to ensure customers get all the financial support
they need to take advantage of the opportunities and face the unique challenges in this
sector. The banks in-house construction industry specialists will customize end-toend solutions for customers right from the bidding process and implementation of the
project through to the defect liability period. These range from Performance &
Financial Guarantees to term loans for Equipment Financing & working capital
facilities to buy raw materials.
ICICIs modern approach to business banking backed by our superior technology
helps provide swift anytime, anywhere banking services via the branch/ATM network,
phone, mobile and Internet. Whether customers are a small contractor striving to
grow, or an established player seeking to grow globally, ICICI Bank provides the
foundation to grow their business.
3) Pharmaceuticals:
Whether it's the challenges of Schedule M or awareness of best practices, nobody
understands the fundamental issues of the pharma business better than customers.
Except, perhaps, ICICI Bank.
Recognising the need to stay abreast of the latest developments in this rapidly
evolving sector, the banks team of pharma specialists bring to the table just the
expertise customers business needs. Whether customers are involved with
formulations or APIs for local or global markets, what customers get is a potent
mixture of industry understanding backed by working capital facilities, forex services
and special lending programs customised for you.

It is a platform to provide value to the pharmaceutical manufacturing customers of

ICICI Bank through focus, innovation and sharing. The banks modern approach to
31

business banking backed by their superior technology helps provide swift anytime,
anywhere banking services via their branch/ATM network, phone, mobile and
Internet.
4) Apparels:
The export quota regime has been dismantled ushering in an era of open competition.
China may be the leader by far in terms of sheer volume. But there are plenty of value
opportunities both as a mass manufacturer and as a leading player in the value-added
premium segments. Many Indian suppliers are already modernizing and diversifying
their operations to meet pressures of scale and speed of delivery.
The Indian domestic market too is witnessing a huge transformation and growth in
organized retail space across malls, departmental stores and premium boutiques.
Customers are brand-hungry and ready to pay premiums to make lifestyle and
personal statements. New players are emerging in regional and national markets.
ICICI Bank is geared to meet customers requirements in the apparel sector through
strong solutions for all their needs:
1) Term loans in rupee and foreign currency with TUFS benefits for financing of
expansion and modernisation plans.
2) Competitively priced working capital and other products (including export
finance in foreign currency) in order to optimise costs of lending.
3) Sophisticated derivative product delivered in a simplified and convenient
manner as a source of hedging and optimising profits.
Finally, ICICI Bank has cut down approval time by standardising the assessment
process through use of scoring models.

5) Transport:

32

Indian road transport industry is witnessing a sea-change. Infrastructure investments

in highways and ports, entry of professional 'outsourced' logistics service companies
in the corporate sector, introduction of tracking technology, better quality and more
choice of vehicles - all this is opening up new opportunities and challenges.
The growth of domestic tourism and migration is leading to increase in travel while
the growth of connectivity is creating new paths of commerce and business.
ICICI Bank offers those in the transport business a host of advantages. From faster
sanction due to parameters-based approach, to interest cost savings according to
usage. A Relationship Manager is the single point contact for all customers needs.
ICICI Bank's Roaming Current Account makes a powerful difference to customers
business. Bank and withdraw money in any branch or ATM across the country. Bank
anytime from 8 a.m. to 8 p.m. at any of the branches. It helps in transferring funds
without a cheque or a DD, through a phone call or through Internet Banking. It uses
the cash management services for collections and payments across the country.
6) Gems & Jewellery:
The Gems & Jewellery industry in India is witnessing downstream integration into the
retail space, alliance marketing with end customers in the export arena, and overall
dynamic growth in domestic and international markets, across the B2B and B2C
space.
ICICI Bank has been serving firms in gems and jewellery sector with comprehensive
services and in-depth expertise.
ICICI have a range of credit facilities and derivative products at competitive rates.
The banks Gems and Jewellery experts know exactly the customers business needs.
Or, if it's convenience customers require, banks vast network of branches and ATMs
are just the thing for the customers. Additionally, ICICI Bank's international
experience and expertise in the global jewellery trade gives customers the most
complete forex products and advisory services you need to stay ahead of competition.
7) Travel & Tourism:
33

ICICI Banks industry-specific solutions help customer leverage every opportunity for
growth and maximize their profits. Banks team of industry experts customizes
solutions designed to fit customers unique business requirements. Customers
leverage the anytime anywhere business banking advantage to manage their finances
efficiently and easily. With the national reach and global network, the bank can now
take the business places.
Industry solutions
Funding solutions for Hotels, Travel & Tourism sector: ICICI provide project finance
in the form of term loans or working capital against card receivables. Rapid Travellers
Cheque Program: The bank purchase TC's from Money Changers on prefixed
transaction exposure/volume. Special Foreign Currency Tour Operators Account: The
bank handle collections of foreign currency and remittances from the outbound tour
operators and inward remittances, for hotels and tour reservation made abroad.
Derivatives for Risk Mitigation: ICICI help customers hedge the foreign currency
inward remittances and local currency outward remittances through our forex
services.
ICICIs customers include
Hotels
Aviation Training Institutes
Money Changers
Tour Operators
Ticketing Agents Consolidators
Travel Vocational Training Institutes
Travel Portals

8) Educational Institutions:
Whether the customers companies are govt. aided or privately managed, in primary,
secondary or higher education, they need a bank that understands your special needs.
34

Be it long-term loans for infrastructure expansion or cash credit, ICICI Bank works
with accredited & recognized educational institutions all over India, and offers the
clients some of the best options for growth and expansions.

DEMAT SERVICES:
Demat Services
ICICI Bank Demat Services boasts of an ever-growing customer base of over 11.5
lacs account holders. In ICICIs continuous endeavour to offer best of the class
services to the customers the bank offer the following features:
e-Instructions: Customers can transfer securities 24 hours a day, 7 days a week
through Internet & Interactive Voice Response (IVR) at a lower cost. Now with
"Speak to transfer", customer can also transfer or pledge instructions through our
customer care officer.
Consolidation Demat Account: Customers can dematerialise the physical shares in
various holding patterns and consolidate all such scattered holdings into the primary
demat account at reduced cost.
Digitally Signed Statement: Customers can receive the account statement and bill by
email.
Corporate Benefit Tracking: Customers can track the dividend, interest, bonus
through the account statement.
Mobile Request: Customers can access the demat account by sending SMS to enquire
about Holdings, Transactions, Bill & ISIN details.

Mobile Alerts: Customers can receive SMS alerts for all debits/credits as well as for
any request which cannot be processed.

35

1. Dedicated customer care executives specially trained at the banks call centre,
to handle all their queries.
2. Countrywide network of over 235 branches, customers are never far from an
ICICI Bank Demat Services outlet.
ICICI Bank is issuing 29 separate credit cards in India. These cards cater to a
wide client base including sports lovers and businessmen for example.
ICICI Signature Credit Card
Following are some points on ICICI Signature Credit Card:
Cardholders get 5 points for International Spends worth INR 100.
Joining fee is INR 25,000.
Cardholders receive air accident insurance cover worth INR 3 crores.
Renewal fee is INR 2,500.
Cardholders receive Free Welcome gifts of INR 35,000. Prizes could be Tag
Heuer watches, Travel Points or Travel Vouchers.
Regular interest rate and cash advance fees are 2.75% per month.
Cardholders get 2 points for spending INR 100 with the card for dining purposes.
Issuer is VISA.
Cardholders receive 4 points for spending INR 100 with the card for travel
purposes.
There are 0% fuel surcharge facilities at all outlets.

ICICI Bank Platinum Credit Card

36

Following are some features of ICICI Bank Platinum Credit Card:

Cardholders get access to airport lounges on a priority basis.

Renewal fee is INR 2,500.

Cardholders receive air accident insurance covers worth INR 1crore.

Regular interest rate is 1.99% per month.

Cash and credit limits are high.

Cash advance fee is 3.15% per month.

Cards are only offered via invitation.

Issuer is VISA.

Joining fee is INR 25,000.

There are 0% fuel surcharge facilities.

ICICI Bank Platinum Premiere Credit Card

Cardholders receive personalized concierge services.

Regular interest rate is 2.95% per month.

Cardholders receive air accident insurance covers worth INR 40 lakhs.

Cash advance fee is 3.15% per month.

Cash and credit limits are high.

Issuer is VISA.

Joining and renewal are free.

37

There are 0% fuel surcharge facilities at all outlets.

Following are other credit cards issued by ICICI Bank in India:

ICICI Bank Titanium Credit Card

ICICI BPL AMWAY Credit Card

ICICI Bank Solid Gold (Visa) Credit Card

ICICI Bank Big Bazaar Silver Credit Card

ICICI Bank Solid Gold (MasterCard) Credit Card

ICICI Bank Big Bazaar Gold Credit Card

ICICI Bank Gold American Express Credit Card

ICICI Bank Trinethra Credit Card

ICICI Bank Travel Smart Credit Card

ICICI Bank Orchid An Ecotel Credit Card

ICICI Bank Golf Credit Card

ICICI Bank Mohun Bagan Credit Card

ICICI Megamart Credit Card

ICICI Bank Ebony Credit Card

ICICI XBOX 360 Credit Card

ICICI Bank Airtel Silver Credit Card

ICICI Sarovar Hotels Credit Card

38

ICICI Bank Airtel Gold Credit Card

ICICI Bank HPCL Silver Credit Card

ICICI Bank Toyota Credit Card

ICICI Bank HPCL Gold Credit Card

ICICI Bank Thomas Cook Titanium Credit Card

ICICI PRU Life Credit Card

ICICI Bank Ascent American Express Credit Card

ICICI BPL Mobile Credit Card

ICICI Bank Platinum Identity Credit Card

ICICI Bank Platinum Credit Card

Following are some salient features of ICICI Bank Platinum Credit Card:
1.

Cardholders receive priority access facilities to airport lounges.

2.

Regular interest rate is 1.99% per month.

3.

Cardholders receive air accident insurance coverage worth INR 1 crore.

4.

Cash advance fee is 3.15% per month.

5.

Cardholders have higher cash limits and credit limits.

6.

Card issuer is VISA.

7.

The card is offered via invitation only.

8.

Issuing bank is ICICI Bank.

9.

Joining fee is INR 25,000.

39

10.

There are 0% fuel surcharge facilities.

11.

Renewal fee is INR 2,500.

MARKETING:
The term market is the root word for the word marketing, market refers to the
location where exchanges between buyers and sellers occur. Marketing pertains to the
interactive process that requires developing, pricing, placing, and promoting goods,
ideas, or services in order to facilitate exchanges between customers and sellers to
satisfy the needs and wants of consumers.
Needs and Wants:
Needs are the basic items required survival. Human needs are an essential
concept underling the marketing process because needs are translated into consumers
wants. Human needs take one of three forms: physical, social, and individual. Wants
are needs that are shaped by both cultural influences and individual preferences. Want
are often described as goods, ideas, and services that fulfill the needs of an individual
consumer. The wants of individuals change as both society and technology change.
Definition:
Marketing, as suggested by the American Marketing Association, is an
organizational function and a set of processes for creating, communicating and
delivering value to customers for managing customer relationships in way that benefit
the organization and its stakeholders.
Philip kotler in his earlier books defines as:"Marketing is human activity directed at
satisfying needs and wants through exchanges processes". Add to kotlers and norris
definition a response from the chartered institute of marketing (CIM).

FOUR PS (Marketing mix):

40

Product: The product management and product marketing aspects of marketing deal
with the specification of the actual good or services and how it relates to the end
-users needs and wants
Pricing: This refers to the process of setting a price for a product including discounts.
Promotion: This includes advertising sales promotion publicity and personnel selling
and refers to the various methods of promoting the product brand or company.
Place: Placements or distribution refers to how the product gets to the customers for
example point of sale placement or retailing. This fourth p has also sometimes been
called place, referring to where a products or services is sold, e.g.in which geographic
region or industry, to which segment (young adults, families, business people, woman,
men etc)

INTRODUCTION
Perception:
Perception can be described as "how we see the world around us". Two individuals
may be the same stimuli under apparently the same conditions, but how they
recognize them, the needs, value, expectations, and the like. The influence that each
of these variable has on the perceptual process, and it relevance to marketing, will be
examined in some detail. Fast, however, we will examine some of the basic concept
that under lies the perceptual process. Perception is the sensing of stimuli external to
the individual organism the act or process of comprehending the world in which the
individual exists.
Perception has been defined by social psychologists as the Complex process by
which people select organize and interpret sensory stimulation in to a meaningful and
coherent picture of the work.
It is the process by which people translate sensory impressions into a coherent and
unified view of the world around them. Though necessarily based on incomplete and
unverified (or unreliable) information, perception is equated with reality for most
practical purposes and guides human behavior in general.
41

CUSTOMER PERCEPTION
A marketing concept that encompasses a customer's impression, awareness and/or
consciousness about a company or its offerings. Customer perception is typically
affected

by advertising, reviews, public

relations, social

media,

personal experiences and other channels.

Perception is not good or bad, right or wrong, it is just the way someone judges an
experience based on their value system of what they believe should happen. Since
people are unique, each of their perceptions are unique .On the other hand each
situation is a "point of contact" with an employee that will tell the customer a "truth"
about the company's idea of customer service. Each situation will create expectations
of what the next experience will probably be like. Companies spend considerable
amount on advertisement and in this world of competitive advantage advertisement
has to be repetitive in nature. Brand hammering results in brand recall which is a
costly affair. So companies need to understand the Customer Perception to facilitate
advertising and Sales Promotional (ASP) efforts towards a better bargain.
In todays globalising economy competition is getting more and more fierce. That
means it becomes more difficult for products and services to differentiate themselves
from other offerings than ever before. Not only is the number of competitive offerings
rising due to globalisation of production, sourcing, logistics and access to information.
Many products and services face new competition from substitutes and from
completely new offerings or bundles from industry outsiders. Since product
differences are closed at an increasing speed and many companies try to win the battle
for customers by price reductions, products and services tend to become commodities.
On the other hand, customer behaviour becomes more hybrid. On one hand,
customers are increasingly price sensitive searching for bargains at marketplaces
like ebay or buying their groceries at discount markets. On the other hand they enjoy
42

branded and luxury goods. One and the same person may plan a weekend trip with a
no-frills airline and a stay at a five-star-hotel.
In the result, customers have a wider choice of often less distinguishable products and
they are much better informed. For many offerings the balance of power shifts
towards the customer. Customers are widely aware of their greater power, which
raises their expectations on how companies should care for them.
Bringing it all together, it becomes ever more difficult to differentiate a product or
service by traditional categories like price, quality, functionality etc.
In this situation the development of a strong relationship between customers and a
company could likely prove to be a significant opportunity for competitive advantage.
This relationship is not longer based on features like price and quality alone. Today it
is more the perceived experience a customer makes in his various interactions with a
company (e.g. how fast, easy, efficient and reliable the process is) that can make or
break the relationship. Problems during a single transaction can damage a so far
favourable customer attitude.
The consequence for companies is that they have to adapt their ways of competing for
customers. Traditionally, companies have focused their efforts of customer
relationship management on issues like customer satisfaction and targeted marketing
activities like event marketing, direct marketing or advertising. Although doubtless
necessary and beneficial, these activities are not longer enough. They narrow the
relationship between company and customer down to a particular set of contacts in
which the company invests its efforts. Most likely this will produce not more than a
satisfied customer who is well aware of the companies offerings and has a positive
attitude towards them. However, a satisfied customer is not necessarily a loyal one.[2]
If a customer is satisfied that means that a product of service has met his expectations
and that he was not dissatisfied by it. Customer satisfaction is doubtlessly very
important. It is the precondition for repeat purchases and it prevents the customer
from telling others about his disappointing experiences. A loyal customer, however, is
more than a customer who frequently purchases from a company.
43

The difference is the emotional bond which links the customer so closely to the
company that he develops a clear preference for these products or brands and is even
willing to recommend them to others. Loyal customers truly prefer a product, brand or
company over competitive offerings. Thus loyalty goes beyond a rational decision for
known quality or superior price-performance-ratio. It is about the customers feelings
and perceptions about the brand or product.
When the customer makes his buying decision, he evaluates the benefits he perceives
from a particular product and compares them with the costs. The value a customer
perceives when buying and using a product or service go beyond usability. There is a
set of emotional values as well, such as social status, exclusivity, friendliness and
responsiveness or the degree to which personal expectations and preferences are met.
Similarly, the costs perceived by the customer, normally comprise more than the
actual price. They also include costs of usage, the lost opportunity to use an other
offering, potential switching costsetc. Hence, the customer establishes an equation
between perceived benefits and perceived costs of one product and compares this to
similar equations of other products.
Based on this, customer loyalty can be understood as to how customers feel about a
product, service or brand and whether their perceived total investments with a it live
up to their expectations.
The important point here is the involvement of feelings, emotions and perceptions. In
todays competitive marketplace, these perceptions are becoming much more
important for gaining sustainable competitive advantage.
Customer perceptions are influenced by a variety of factors. Besides the actual
outcome i.e. did the product or service deliver the expected function and did it fulfil
the customers need the whole process of consumption and all interactions involved
are of crucial importance. In todays globalised information driven economy this can
also comprise issues like

How other customers or influencing groups perceive the product or brand

The degree to which the customer feels the actual marketing campaign
addresses the most important issues
44

Responsiveness and service quality of any affiliates, e.g. distribution partners

Customer perceptions are dynamic. First of all, with the developing relationship
between customer and company, his perceptions of the company and its products or
services will change.
The more experience the customer accumulates, the more his perceptions will shift
from fact-based judgements to a more general meaning the whole relationship gains
for him. Over time, he puts a stronger focus on the consequence of the product or
service consumption.
Moreover, if the customers circumstances change, their needs and preferences often
change too. In the external environment, the offerings of competitors, with which a
customer compares a product or service will change, thus altering his perception of
the best offer around. Another point is that the public opinion towards certain issues
can change. This effect can reach from fashion trends to the public expectation of
good corporate citizenship. Shells intention to dump its Brent Spar platform into the
ocean significantly altered many customers perception of which company was worth
buying fuel from.
Research has been don on the impact of market share on the perceived quality of a
product.[3]Depending on the nature of the product and the customers preferences,
increasing market share can have positive or negative effects on how the customer
perceives the product.
Positive effects of increasing market share on customer perception

Increasing market share can send out positive signals by acting as an indicator of
superior quality that is recognised by more and more other customers. This effect is
particularly strong for premium priced products. Customers normally assume that a
product must be of exceptional quality if it can gain such an unexpected market success

despite its high price.

Many brands offer positive emotional benefits of using a product that is popular in the

markets.
The value of a product or service can rise through increasing number of users of the
same product, e.g. number of members of an online community, better availability of
45

software for popular computer systems.

Negative effects of increasing market share on customer perception

For premium and luxury products, customers may translate an increasing market share

into a loss of exclusivity and thus perceive it as less valuable.

The quality of services may suffer if they are consumed by increasing numbers of users.
Diseconomies of scales and congestions can be observed with busy airports and many
other services so that customers may look out for other providers that promise more
timely service and convenience.

The concept of customer perception does not only relate to individual customers in
consumer markets. It is also valid in business to business situations. For example, a
competitor benchmarking survey of a large industrial supplier revealed that the market
leader, although recognised for excellent quality and service and known to be highly
innovative, was perceived as arrogant in some regions. If we take into consideration
that there are about four other large players with a similar level of quality and
innovative ideas, this perceived arrogance could
develop into a serious problem. Customers here are well aware the main
characteristics of all the offerings available at the market are largely comparable. So
they might use the development of a new product generation of their own to switch to
a supplier that can serve them not better or worse, but with more responsiveness and
understanding.
Companies

have

done

lot

to improve customer satisfaction and

customer

relationships in the past. As discussed above, this will not be enough any more.
Any serious effort to manage customer perceptions starts with a good measurement
system. Companies must be truly willing to look at the whole process of interaction
through the customers eyes. For many companies, this requires a more or less
extensive shift in mindset, since most departments from development to sales will be
involved.

Example:
46

France Telecom has set up a Quality of Perceived Value Lab at its R&D department.
Aiming at a better understanding of customer perception, this units main objective is in fact
to give a better definition of the correlation that exists between technical problems in
products an those perceived by users. By anticipation customers feelings on product
qualities, the laboratory provides perceived quality expertise on new solutions. Thus, France
Telecom implements the issue of how customers perceive their products as early as in the
product development process.
The backbone of any customer perception management and measurement system,
however, is thorough market research and surveys. There are several aspects of
measuring customer perceptions.

First of all the company has to find out how itself and its offerings are
perceived by the customers. It is essential to identify what the customer is
actually buying and which features are most important to him. Only this way it
is possible to align the internal focus and resources to the customers
expectation. This information is of greater value if it can be compared to the
customers perception of competitive offerings. Not only will this reveal
relative strengths and weaknesses, it is also a valuable source of ideas for

improvement.
Besides that, surveys should also identify the relative importance of several
influencing variables in the eyes of the customer. To know what matters most

to the customer helps to set priorities for projects.

Of course, as with any market research activities, it should be based on a
careful customer segmentation. Customer groups that differ by frequency of
use, social status, geographical region or other criteria, are likely to have
different expectations and preferences. Hence, they will probably perceive an

offering in different ways.

Zeithaml et al suggest to incorporate several behavioural-intentions questions
to identify signals that are potentially favourable or unfavourable for the
company. Questions for behaviour intentions are potentially of higher validity
and richer diagnostic value than the overall service quality or customer
satisfaction variables. Since these questions are directed at potential future
actions they can not only indicate of changes in demand and market trends.
47

They also provide early warning signs and help to take to take timely
corrective action.
Only if a company knows which features of its products and services or which other
points of contact with the customer are considered most important by the customers, it
can develop appropriate strategies. Such a strategy will not only help the company to
strengthen the emotional bond with the customer through targeted improvements and
activities. It may also have the positive side effect that the customers whole
experience leads him to the conclusion that this company really understands his
distinctive needs and really takes him seriously. Hence, the customers perception of
the whole company may improve beyond a positive attitude towards a particular
product.
Based on thorough research, companies can develop strategies and initiate targeted
activities to manage and improve customer perceptions. This article finishes with
some examples of how this can be done. It has to be taken into consideration,
however, that there is no one right strategy. Since these measures shall provide a
distinctive competitive advantage, they should be based on the particular
competencies and resources of a company and they should aim at setting the company
apart from the other market participants.

The service experience is closely linked to his perception of the total company

and its offerings be it products or service. A common idea of many authors is that it
is not always necessary to deliver the absolutely perfect customer experience. Instead
it is important to solve the customers need or problem in a matter that is perceived
appropriate. For many retail products, for example, it will be sufficient in most cases
to offer an appropriate group of substitute products, but not all particular products. In
service situations, customers will - depending on the actual nature of the service - not
expect an immediate service delivery. They will however expect a delivery within a
time frame that is either market standard or meets the service promise of the actual
service provider. As long as the company keeps this promise, the customer will
perceive this as satisfying. Byrnes even suggests that you earn more customer loyalty
when you do a good job fixing a service problem, than if there had been no problem at

48

all.[6] The point is to meet or excel the customers expectations, not to achieve some
ideal level of product or service delivery.

Companies should try to make sure that their customers are fully aware of all

the ways their offering can provide value to them. They have to explain the customer
how this particular product can deliver more value than those from competitors. This
approach means to widen the customer perception and to extend their awareness and
appreciation to more features or aspects of the offering. However, this point has to be
considered very carefully in order not to produce an diametrical effect.
Example
A customer who uses a large part of the functionality of his mobile phone might be
delighted to learn about additional features and functions of the next generation
product. Here the perceived value of the new product could be increased by
highlighting the utility of the new functions. Another type of customer only uses his
mobile phone to make and receive phone calls. He would probably not appreciate this
type of communication. His equation of product value and cost will shift to the
perception that he should pay an higher price for even more features he does not need
and will not use.
This point again highlights the critical importance of market research. In this example,
market research would help the company to develop different communication
strategies that focus on those product features that are of high priority for particular
market segments.

A commonplace strategy to circumvent the loss of exclusivity associated with

high market share is to leverage the brand by introducing new related brands. This is
very efficient with fragrances or fashion brands.

In situations in which customers perceive high market shares lead as a sign of

quality, it is advisable to advertise a favourable high share, e.g. Americas most

popular SUV, Three out of five people already use.

It is advisable to contact customers who indicate low results for loyalty or

perception of the company in the surveys. Direct contact allows to identify the roots
49

of the problem and if possible to solve the issue. Besides solving some customerspecific problems and thus improving the perception of some individuals, such
follow-ups may reveal some causes for problems that are common to wider parts of
the customer base. These are the starting points for some improvements with
potentially significant effects.

Follow-up is the hallmark of any loyalty or customer perception surveys. The

effects of any activities should be measured and analysed by follow-up surveys to

provide further insights.

1. Occupation of respondents
OPINION

NO. OF
RESPONDENTS

PERCENTAGE OF
RESPONDENTS

Self Employed

14

14%

50

Business

14

14%

Private Sector

37

37%

Professional

24

24%

Govt. Sector

14

14%

TOTAL

100

100%

21
14

G
OV
T.

PR
IV
AT
E

SE
LF

14

SE
CT
O
R

14

EM
PL
OY
ED

percentage of respondents

37

SE
CT
O
R

40
35
30
25
20
15
10
5
0

opinion

INTERPRETATION:
From the above analysis, we can know that 37% of the respondents were from the
private sector, 21% were professionals, and 14% each from govt.sector, business and
self employed. It shows people working in the private sector are the major target
audience of the credit card companies.
2. Gender of respondents
OPINION

NO. OF
RESPONDENTS
51

PERCENTAGE OF
RESPONDENTS

Female

14

14%

Male

14

14%

37

37%

76

80
70
60
50
percentage of respondents 40
30

24

20
10
0
FEMALE

MALE

opinion

INTERPRETATION:
The above analysis shows that more than 2/3 rd of the respondents were male. The
major reason for this could be that male have regular source of income. 76 % of the
respondents were male compared to just 24% of the female respondents. This Many
of the housewives who uses the credit card are those which are been issued as free
card along with existing card.

3. What type of account do you have in bank?

OPINION

NO. OF
52

PERCENTAGE OF

RESPONDENTS

RESPONDENTS

Savings

45

45%

Current

32

32%

Fixed

10

10%

NRI

13

13%

TOTAL

100

100%

PERCENTAGE OF
RESPONDENTS

Sa
vi
ng
s
Fix
ed

50% 45%
45%
40%
35% 32%
30%
25%
20%
percentage of respondents
13%
15%
10%
10%
5%
0%

opinion

INTERPRETATION
From the above table, it is clear that 45% of the respondents have savings account.
32% of the respondents have current account. 10% of the respondents have fixed
deposit account. 13% of the respondents have NRI account.

53

4. Which of the following services are offered by HDFC Bank?

OPINION

NO. OF
RESPONDENTS

PERCENTAGE OF
RESPONDENTS

D-Mat A/C

36

36%

Mutual Funds

14

14%

e-Instructions

25

25%

LI & GI

15

15%

Digitally Signed
Statement

10

10%

TOTAL

100

100%

40%

36%

35%
30%
25%
percentage of respondents

20%
15%

25%

14%15%

10%
5%
0%
D-Mat A/C
opinion

INTERPRETATION:

54

10%

PERCENTAGE OF
RESPONDENTS

From the above table, it is clear that 36% of the respondents said that D-Mat a/c is
offered by HDFC Bank. 14% of the respondents said that mutual funds offered by
HDFC Bank. 25% of the respondents said that e-instruction are offered by HDFC
Bank. 15% of the respondents said that LI and GI is offered by HDFC Bank. 10% of
the respondents said that digitally signed statement is offered by HDFC Bank
5. Which credit card do you use?
OPINION

NO. OF
RESPONDENTS

PERCENTAGE OF
RESPONDENTS

Visa

30

30%

Mastercard

38

38%

Classic

16

16%

Gold &diners

9%

Platinum

7%

TOTAL

100

100%

38
30

16

opinion

55

PL
AT
IN

IC

CL
AS
S

VI
SA

40
35
30
25
20
15
percentage of respondents
10
5
0

INTERPRETATION:
From the above table, it is clear that 38% of the respondents use the MasterCard. It is
followed by visa which is being used by 30% of the respondents. The two are
followed by classic, gold & diners and platinum respectively with 16%, 9% and 7%.

56

6. How would you know about Credit cards?

OPINION

NO. OF
RESPONDENTS

PERCENTAGE OF
RESPONDENTS

Advertisements

67

67%

Friends and Relatives

12

12%

Direct Selling Agents

21

21%

TOTAL

100

100%

80%
70% 67%
60%
50%
percentage of respondents

40%
30%
20%

21%

PERCENTAGE OF
RESPONDENTS

12%

10%
0%
Advertisements
opinion

INTERPRETATION:
From the above table, it is clear that 67% of the respondents know about credit cards
through advertisements. 12% of the respondents know about credit cards through
friends and relatives. 21% of the respondents know about credit cards through direct
selling agents.

57

7. Since how long you have been using the credit card?

NO. OF
RESPONDENTS

PERCENTAGE OF
RESPONDENTS

2%

26

26%

59

59%

13

13%

100

100%

59
26
13

-4
2

<

opinion

INTERPRETATION:

58

YE
AR
S

YE
AR
S

percetage of respondents

70
60
50
40
30
20
10
0

TOTAL

YE
AR
S

Above 6 years

AB
OV
E

4- 6 years

-6

2 4 years

< 2 years

YE
AR
S

OPINION

From the above table, it is clear that 59% of the respondents has been using the credit
card for more than 4 years but less than 6 years. 26% of the respondents fall in the
category of 2 4 years, 13% percent of them have been using the card for more than 6
years. Only 2% of the respondents are such who have used credit card for less than 2
years.

8. According to you which are the convenient way to pay?

OPINION

NO. OF
RESPONDENTS

PERCENTAGE OF
RESPONDENTS

Cash

37

37%

Credit card

40

40%

Both

23

23%

TOTAL

100

100%

45%

40%
40% 37%
35%
30%
25%
20%
15%

PERCENTAGE OF
RESPONDENTS

10%
5%

Bo
th

0%
Ca
sh

percentage of respondents

23%

opinion

59

INTERPRETATION:
From the above table, it is clear that 37% of the respondents agreed that cash is the
convenient way to pay. 40% of the respondents agreed that credit card is the
convenient way to pay. 23% of the respondents agreed that both the ways are
convenient to pay.

9. What prompts you to use credit card instead of using cash?

OPINION

NO. OF
RESPONDENTS

PERCENTAGE OF
RESPONDENTS

Convenience

28

28%

Free credit
availability

24

24%

Cash handling not

required

16

16%

Status symbol

25

25%

Emergency

7%

TOTAL

100

100%

60

30% 28%
25%
25% 24%
20%
percentage of respondents

16%

15%
10%

7%

PERCENTAGE OF
RESPONDENTS

5%
0%
Convenience
opinion

INTERPRETATION:
From the above table, it is clear that 28% of the respondents agreed that they use
credit cards for convenience. 24% of the respondents agreed that they use credit cards
for free credit availability. 16% of the respondents agreed that they use credit cards
for no use of cash handling. 25% of the respondents agreed that they use credit cards
as status symbol. 7% of the respondents agreed that they use credit cards for
emergency.
10. What is your monthly income?
OPINION

NO. OF
RESPONDENTS

PERCENTAGE OF
RESPONDENTS

< 10,000

24

24%

10,000 15,000

45

45%

15,000 20,000

21

21%

Above 20,000

10

10%

TOTAL

100

100%

61

50%
45%

45%

40%
35%
30%
24%
25%
21%
percentage of respondents
20%
15%
10%

10%

PERCENTAGE OF
RESPONDENTS

5%
0%
< 10,000
opinion

INTERPRETATION:
From the above table, it is clear that 24% of the respondents have monthly income of
<10,000. 45% of the respondents have monthly income of 10000-15000. 21% of the
respondents have monthly income of 15000-20000. 10% of the respondents have
monthly income of above 20000.

11.

What percentage of income do you save monthly?

NO. OF

PERCENTAGE OF

RESPONDENTS

RESPONDENTS

< 10%

0%

10% - 20%

24

24%

20% - 30%

63

63%

OPINION

62

Above 30%
TOTAL

13

13%

100

100%

70
60
50

63

40
30
percentage of respondents
20
10

24

<

20
%

10
%

-3
0%

13

opinion

INTERPRETATION:
From the above table, it is clear that 63% of the respondents claims that they save
20% - 30% of their monthly income. 24% of them saves between 10% - 20% and
13% of them saves above 30% of their monthly income. None of them saves less than
10%.
12. What is the spending limit of your credit card?
OPINION

NO. OF
RESPONDENTS

PERCENTAGE OF
RESPONDENTS

< 5000

17

17%

5000 15,000

37

37%

15,000 25,000

21

21%

Above 25,000

25

25%

63

TOTAL

100

100%

40%

37%

35%
30%
25%

25%
21%

20% 17%
percentage of respondents 15%
10%
5%

PERCENTAGE OF
RESPONDENTS

<

50
00

0%

opinion

INTERPRETATION:
From the above table, it is clear that 17% of the respondents said that their spending
limit on credit card is <5000. 37% of the respondents said that their spending limit on
credit card is 5000-15000. 21% of the respondents said that their spending limit on
credit card is 15000-25000. 25% of the respondents said that their spending limit on
credit card is above 25000.

13. Has credit card brought any changes in your monthly spending?
OPINION

NO. OF
RESPONDENTS

PERCENTAGE OF
RESPONDENTS

Yes

76

76%

No

24

24%

TOTAL

100

100%

64

80% 76%
70%
60%
50%
percentage of respondents

40%
30%

24%

20%

PERCENTAGE OF
RESPONDENTS

10%
0%
Yes

No

opinion

INTERPRETATION:
From the above table, it is clear that 76% of the respondents said that credit card
brought changes in their monthly spending. 24% of the respondents said no.

14. How much satisfied you are with your existing credit card?
OPINION

NO. OF
RESPONDENTS

PERCENTAGE OF
RESPONDENTS

Highly satisfaction

11

11%

Satisfied

36

36%

65

Highly dissatisfied

TOTAL

9%

1%

100

100%

50
45
40
35
30
25
20
15
10
5
0

43
36

11

H
IG
H
LY

SA
TI
SF
IE
D

percentage of respondents

43%

9
1
AT
IS
FI
ED

Dissatisfied

43

D
IS
S

Neutral

Axis Title

INTERPRETATION:
From the above table, it is clear that 43% of the respondents are neither satisfied nor
dissatisfied with the card that they are using i.e. they are neutral. 36% of the
respondents says that are satisfied with their credit card facility. Only 11% says they
are highly satisfied and 9% says that they are dissatisfied with the facility that they
have. 1% of the respondents are highly dissatisfied with the credit card facility.
15. Which factor influenced you most to buy credit card?

66

OPINION

NO. OF
RESPONDENTS

PERCENTAGE OF
RESPONDENTS

Price

12

12%

Presentation of sales
man

24

24%

Insurance cover

18

18%

Cash withdrawal

38

38%

others

8%

TOTAL

100

100%

38%
40%
35%
30%
24%
25%
18%
20%
15%12%
8%
10%
5%
0%

PERCENTAGE OF
RESPONDENTS

Ca
sh

wi Pric
th
e
dr
aw
al

percentage of respondents

opinion

INTERPRETATION:
From the above table, it is clear that 12% of the respondents are influenced by price.
24% of the respondents are influenced by presentation of salesman. 18% of the
respondents are influenced by insurance cover. 38% of the respondents are influenced
by cash withdrawal. 8% of the respondents are influenced by others.
67

16. Do you feel services provided by your credit card(s) are according to your
expectations?

OPINION

NO. OF
RESPONDENTS

PERCENTAGE OF
RESPONDENTS

Yes

69

69%

No

31

31%

TOTAL

100

100%

80%
70%

69%

60%
50%
percentage of respondents

40%
30%

31%

20%
10%
0%
Yes No
opinion

INTERPRETATION:

68

PERCENTAGE OF
RESPONDENTS

From the above table, it is clear that 69% of the respondents felt that services
provided by credit cards are according to their expectations. 31% of the respondents
felt that services provided by credit cards are not according to their expectations.

17. Do you think interest rate charged by the credit card companies is
reasonable?

OPINION

NO. OF
RESPONDENTS

PERCENTAGE OF
RESPONDENTS

Yes

82

82%

No

18

18%

TOTAL

100

100%

90% 82%
80%
70%
60%
50%
percesntage of respondents 40%
30%
20%

18%

10%
0%
Yes No
opinion

INTERPRETATION:

69

PERCENTAGE OF
RESPONDENTS

From the above table, it is clear that 82% of the respondents felt that interest rate
charged by the credit card companies is reasonable. 18% of the respondents felt that it
is not reasonable.

18. Do you feel taking credit card was a good decision?

OPINION

NO. OF
RESPONDENTS

PERCENTAGE OF
RESPONDENTS

Yes

62

62%

No

8%

Cant say

30

30%

TOTAL

100

100%

70

70%

62%

60%
50%
40%
percentage of respondents 30%

30%
PERCENTAGE OF
RESPONDENTS

20%
10%

8%

Ye
s

0%

opinion

INTERPRETATION:
From the above table, it is clear that 62% of the respondents felt that taking credit
card is a good decision. 8% of the respondents felt as it is not a good decision. 30% of
the respondents cant say about the topic.

19. Would you like to switch over to another companys credit card?

OPINION

NO. OF
RESPONDENTS

PERCENTAGE OF
RESPONDENTS

Yes

37

37%

No

63

63%

TOTAL

100

100%

71

70%

63%

60%
50%
40% 37%
percentage of respondents 30%

PERCENTAGE OF
RESPONDENTS

20%
10%
0%
Yes

No

opinion

INTERPRETATION:
From the above table, it is clear that 37% of the respondents said that they like to
switch over to another companys credit card. 63% of the respondents said that they
dont switch over to another companys credit card.

20. What are the major purposes for which you use credit card?

OPINION

NO. OF
RESPONDENTS

PERCENTAGE OF
RESPONDENTS

Shopping

32

32%

Hotels

15

15%

Health

10

10%

72

Petrol Pump

32

32%

Travel and others

11

11%

TOTAL

100

100%

32%

32%

15%

11%

10%

PERCENTAGE OF
RESPONDENTS

Tr
av
el

an
d

ot
he
rs

H
ea
lth

Sh
op
pi
ng

35%
30%
25%
20%
15%
10%
5%
0%

opinion

INTERPRETATION:
From the above table, it is clear that 32% of the card usage is at petrol pumps and for
shopping. For hotels and restaurants bill payments the card usage is 15%, for
travelling and others its 11% and for health related payments card usage is merely
10%.
21. Where do you see the future of credit card?

OPINION

NO. OF
RESPONDENTS

PERCENTAGE OF
RESPONDENTS

Rapid growth

23

23%

Steady growth

10

10%

73

Stagnant

29

29%

Declining

15

15%

Cant predict

23

23%

TOTAL

100

100%

35%
30%

29%

25% 23%

23%

20%
15%

percentage of respondents 15%

10%

10%

PERCENTAGE OF
RESPONDENTS

5%
0%
Rapid growth
Axis Title

INTERPRETATION:
From the above table, it is clear that 23% of the respondents said that in future there
will be a rapid growth for credit cards. 10% of the respondents said that in future there
will be a steady growth for credit cards. 29% of the respondents said that the growth
for credit cards will be stagnant. 15% of the respondents said that the growth for
credit cards will be declining. 15% of the respondents said that they cant predict
about the growth of credit cards.

FINDINGS
1. 45% of the respondents have savings account.
2. 36% of the respondents said that D-Mat a/c is offered by HDFC Bank.
74

3. 38% of the respondents use the MasterCard.

4. 67% of the respondents know about credit cards through advertisements.
5. 59% of the respondents has been using the credit card for more than 4 years
6.
7.
8.
9.

but less than 6 years.

40% of the respondents agreed that credit card is the convenient way to pay.
28% of the respondents agreed that they use credit cards for convenience.
45% of the respondents have monthly income of 10000-15000.
63% of the respondents claims that they save 20% - 30% of their monthly

income.
10. 76% of the respondents said that credit card brought changes in their monthly
spending.
11. 43% of the respondents are neither satisfied nor dissatisfied with the card that

they are using i.e. they are neutral.

12. 38% of the respondents are influenced by cash withdrawal.
13. 82% of the respondents felt that interest rate charged by the credit card

companies is reasonable.

CONCLUSIONS
1.
2.
3.
4.
5.
6.

Majority of the respondents are male working in private sector.

Customers know about the credit cards maximum through advertisements.
Customers feel that credit card is the convenient way to pay.
Customers are satisfied with their existing credit cards.
Customers are influenced by cash withdrawal facility of credit cards.
Services provided by credit card(s) are according to the customers
expectations.
75

7. Respondents with higher salary utilize the cards to the maximum whereas
those with lower salary are more cautious.
8. Lower the savings, higher is the requirement for the use of cards. Purchases
can be made through cards and can be paid from next months salary because
the limit is 45 days for settling the dues.
9. Credit cardholders with higher income feel that credit cards have changed
their consumption pattern. The credit card purchase is not always a rational
buy; some part of it is also impulse buying.

76

SUGGESTIONS
With the multiplying volumes and the contest for efficiency, marketers vie with
each other out to the existing and potential card holders. A shakeout is inevitable
in this field of marketing. The card issuers face many difficulties and the credit
card service market also suffers from certain bottle necks which can be outlined
below.
1. The banks must reduce the service charge which is to be paid by the card
holders for ticket booking, petrol fills and certain establishments that
charge 2 to 3% on the total price.
2. Women should be induced to use credit cards by creating awareness on the
benefits derived from them. New schemes should be introduced to cater to
their specific needs.
3. The methods should be adopted to bring degree of popularization through
mass media channels like Television, Radio, Airports Centres, Star Hotels,
Railway Centres, and Super Markets etc.
4. Customer education is needed for increased awareness, facility derived and
ways to make the best use of the card.
5. The credit card holder should sincerely and honestly repay the balances in
time and facilitate the system to work out smoothly.
6. The credit cardholders should plan their economic affairs i.e. they should
not buy unnecessary or unwanted things simply because they have credits
which does not require immediate payment. They should always think
about the future commitments and arrange funds for in time.
7. The Admission fees and renewal fees should be reduced so that it can
attract more customers.
8. The interest charged by the credit card agencies is much higher than the
normal lending rates by the bankers and it should be reduced.

QUESTIONNAIRE
1. Occupation of respondents
77

 Self Employed
Business
Private Sector
Professional
Govt. Sector
2. Gender of respondents
Female
Male

3. What type of account do you have in bank?

Savings
Current
Fixed
NRI

4. Which of the following services are offered by HDFC Bank?

D-Mat A/C
Mutual Funds
e-Instructions
LI & GI
Digitally Signed Statement

5. Which credit card do you use?

Visa
Mastercard
Classic
Gold &diners
Platinum

6. How would you know about Credit cards?

Advertisements
Friends and Relatives
Direct Selling Agents

7. Since how long you have been using the credit card?
< 2 years
2 4 years
78

 4- 6 years
Above 6 years
8. According to you which are the convenient way to pay?
Cash
Credit card
Both
9. What prompts you to use credit card instead of using cash?
Convenience
Free credit availability
Cash handling not required
Status symbol
Emergency
10. What is your monthly income?
< 10,000
10,000 15,000
15,000 20,000
Above 20,000
11.
What percentage of income do you save monthly?
< 10%
10% - 20%
20% - 30%
Above 30%
12. What is the spending limit of your credit card?
< 5000
5000 15,000
15,000 25,000
Above 25,000
13. Has credit card brought any changes in your monthly spending?
Yes
No
14. How much satisfied you are with your existing credit card?
Highly satisfaction
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
15.

Which factor influenced you most to buy credit card?

Price
Presentation of sales man
Insurance cover
Cash withdrawal
others
79

16.

Do you feel services provided by your credit card(s) are according to your
expectations?
Yes
No
17.
Do you think interest rate charged by the credit card companies is
reasonable?
Yes
No
18.
Do you feel taking credit card was a good decision?
Yes
No
Cant say
19.
Would you like to switch over to another companys credit card?
Yes
No
20.
What are the major purposes for which you use credit card?
Shopping
Hotels
Health
Petrol Pump
Travel and others
21.
Where do you see the future of credit card?
Rapid growth
Steady growth
Stagnant
Declining
Cant predict

BIBLIOGRAPHY
BOOKS
1. Marketing Management
2. Marketing Research

T. N. Chhabra
D.D.Sharma
80

3. Marketing Management
4. Marketing Management -

Philip Kotler
S.A. Sherlekar

WEBSITES
1. www.financialexpress.com
2. www.google.com
3. www.icicibank.com

81