Project Presentation

2016
TABLE OF CONTENTS
i) Title of the project
ii) Objective of the study
iii) Literature Survey
iv) Methodology
v) Data Analysis
vi) Results, Discussion and Conclusions
 Title of the project

Project Title:- CUSTOMER SATISFACTION IN THE

INDIAN BANKING SECTOR
Name:- Jayant Kumar
Award:- MBA (MASTER OF BUSINESS ADMINISTRATION)
Year of Submission:- 2016
 Objective of the study
The main objective of this study are-
To identify customer satisfaction variables which
lead to building relationship with customers in the
Indian banking sector
To study the difference in perception of the
customers of the bank towards various services
provided by bank.
To analyze the satisfaction level of customers with
respect to the various service provided by the
banks
To identify the strategies of banks to satisfy their
customers.
 Literature Survey
Customer satisfaction is the state of mind that customers have about a company
when their expectations have been met or exceeded over the lifetime of the
product or service. The achievement of customer satisfaction leads to company
loyalty and product repurchase. There are some important implications of this
definition:
Because customer satisfaction is a subjective, no quantitative state, measurement won't
be exact and will require sampling and statistical analysis.
Customer satisfaction measurement must be undertaken with an understanding of the
gap between customer expectations and attribute performance perceptions.
There should be some connection between customer satisfaction measurement and
bottom-line results.
"Satisfaction" itself can refer to a number of different facts of the relationship with a
customer. For example, it can refer to any or all of the following:
Satisfaction with the quality of a particular product or service
Satisfaction with an ongoing business relationship
Satisfaction with the price-performance ratio of a product or service
Satisfaction because a product/service met or exceeded the customer's expectations
 Methodology
This study is exploratory in nature. It provides a description of contemporary
satisfaction parameter in the Indian banking sector. Exploratory research provides
insights into and comprehension of an issue or situation. Exploratory research
helps to determine the best research design, data collection method and selection
of subjects.
SOURCES OF DATA-
There are many sources of data collection, such as secondary data collection and
Primary data collection.
Primary data--There are various ways to undertake the gathering of primary
data, including conducting surveys to create market data or using other research
instruments such as questionnaire.
Sample size- 100
Sample techniques- Convenience sampling
Secondary data
This involves information that already exists somewhere, such as in studies
already undertaken on this area as well as published books, articles in journals,
articles on the internet and other sources.
 Data Analysis
The questionnaire was designed from the literature review as well as from the results
of in-depth interviews. It included sixteen variables which determined the satisfaction
of the customers of the five banks chosen for the study. Two of these banks were
national banks namely ,state Bank of India(SBI) and Punjab National Bank(PNB) and
three were Private sector Banks namely, Housing Development Finance
corporation(HDFC),Industrial Credit and Investment Corporation of India(ICICI),and
Industrial Development Bank of India(IDBI). SBI and PNB were chosen because they
have the largest network of branches in India. ICICI, HDFC and IDBI were the first
private banks to introduce intelligent banking in India. These banks have a strong
retail presence and offer a comprehensive range of information to the customer. They
have taken initiatives to satisfy customers and provide value added services.
Data from 100 customers were collected. The five banks were contacted individually
to obtain the contact addresses of the customers and the questionnaire was
administered to customers who had been with the bank for three years. The
questionnaire is divided in to five sections. The second part of questionnaire dealt with
respondent satisfaction with respect to services and the third part dealt with variables
which involve transactions. Customer satisfaction was recorded on a 7 point semantic
differential scale ranging from extremely good/satisfied to extremely bad/dissatisfied.
The other parts of the questionnaire recorded information about customers experience
with their respective banks, their banking habits and demographic information.
 Results, Discussion & Conclusion
The Banking sector in India is undergoing major changes due to competition and the
advent of technology. The customer is looking for better quality and services which can
provide him/her with satisfaction. This study reveals the different levels of satisfaction that
customer had with their banks and helps identify the factors (or relationship dimensions)
responsible for satisfying the customer. This would help in enhancing the relationship
between the two, and thus aid decision makers in banks to identify the major factors that
determine satisfaction. Many service firms, including retail banks have been measuring
customer satisfaction and quality to determine how well they are meeting customer needs.
This study derives its basic findings and is also in line with empirical findings with respect to
customer satisfaction by other researchers.
Looking at the demographics of the customer and satisfaction with the services,64 percent
customers of IDBI ,ICICI and HDFC are in age group of 25-35 years ,are post graduates
and their satisfaction is highest with multi channel banking.71 percent of the customers of
SBI are above 35 years, are graduates and their satisfaction is highest with traditional
facilities. These findings propose that the private banks namely ICICI, IDBI, and HDFC
have been able to attract the younger customers, with higher educational levels, who are
comfortable with the usage of multi channel banking. On the other hand the customer of
national bank, SBI are older in age and are satisfied with the traditional facilities. SBI with
the largest network of branches in India, has given competition to the private banks and
has retained its older customers by satisfying them with the traditional facilities.
 Results, Discussion & Conclusion
Perceptual mapping has been extensively used in marketing for various applications where
a manager wants to know the cognitive dimensions that consumers use to evaluate
products and services. Perceptual mapping can also assess the relative positions of
various products and services. This study has created a perceptual map using factors
scores of each of five banks under study. These maps will help identify how each bank is
positioned in the customers mind. We can see from exhibit 6 that customers find most
satisfaction with the traditional facilities of state bank of India and least satisfaction with
HDFC bank. Customers have maximum satisfaction with multi channel banking facilities of
ICICI bank and least satisfaction with Punjab national bank. Internal marketing provides
maximum satisfaction to customers of ICICI bank and least to those of state bank of India.
Though SBI has a largest network of branches its focus on customer satisfaction with
respect to any time anywhere could do with improvement.
Perceptual mapping is an important marketing research tool used in many areas of
marketing. Strategies based on perceptual maps have led to increased profits, better
market control and more stable growth. a ranking score sheet of the customer perception
based on perceptual mapping .the result from this study could provide managerial lessons
on assessment of strengths, improvement of services and in evolving a research strategy
that will benefit the management of banks.