1 KSFE

A STUDY ON
“CUSTOMER SATISFACTION TOWARDS INVESTING
CHITS IN KSFE”

Submitted by

CHINCY CHANDRAN.C

Under the guidance of

Miss. MIDHUNA
[Faculty Member]

In Partial Fulfillment of the Requirements for the

Award of the Degree of

BHACHELOR OF COMMERCE
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DECLARATION

I here by declare that the topic entitled “customer satisfaction towards

investing chits in ksfe” is a bonafide work carried out by me under the guidance
and supervision of

Date

place CHINCY CHANDRAN C

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ACKNOWLEDGEMENT

I thank God, the almighty, the source of knowledge and wisdom who
strengthened and inspired me and for all his abundant grace and blessing for the
successful completion of my project work.

I express my sincere thanks to …… providing all the facilities.

I am very thankful to Mrs Midhuna….. college for allowing me to undertake

the project and for her valuable guidance.

With the profound sense of gratitude regards I acknowledgement with great

pleasure, the guidance and support extended by Sciences with her logical
thoughts that have greatly contributed in bringing out the project.
I also thanks all ……. staffs of for their help and constant support.

Chincy chandran c
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1.1 SIGINIFICANCE OF THE STUDY

The study of the KSFE Chits Funds has been undertaken with certain objectives by
highlighting the customer satisfaction, unique features, functions and working as well as
statutory regulations governing of the company.

1.3 OBJECTIVE OF THE STUDY

The board objective of the study was to provide the performance with some new Customer
analysis tools so that they could find the accuracy and different for timely decision making
this important to improve their performance and efficiency.

 To obtain a true insight into Customer satisfaction.

 To make comparative study of Customer attitude in different years.
 To draw the correct picture of the Customer in term of liquidity, solvency,
profitability etc.
 To find out the reason for unsatisfactory results.

1.3 RESEARCH PROBLEM

Customer satisfaction towards investing in Chits Funds in KSFE

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1.4 RESEARCH METHODOLOGY

A) PRIMARY DATA

Primary data related to the project was collected from the discussion and interaction with
the Customers and senior employees in the organization from Administration and finance
department.

B) SECONDARY DATA

Secondary data was collected from the document, which were in printed forms like
annual report, reference book based on the customer management and through websites.

1.5 LIMITATION OF THE STUDY

 Limitations of Customer interaction

 Comparative study required
 Problems of policy changes
 Personal bias
 Incomparable
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Chapter 2

2 Literature review

Customer satisfaction (CS) has attracted serious research attention in the recent past.
This paper reviews the research on how to measure the level of CS, and classify research
articles according to their approaches and methodologies. This paper also tries to supply
some insights about the state of measuring CS in Vietnam. The main objective is to
provide a conceptual basic to understand existing methodologies used for measuring CS. A
total of 103 articles from more than 50 journals and international conferences are reviewed. A
number o f important methodologies used for measuring CS are defined and classified into
two different approaches based on their nature. Another important contribution of this study
is to suggest some criteria which should be considered to make CS measurement as a leading
indicator of the financial performance. This paper can be helpful for managers to gain basic
conceptual ideas of the methodologies used for measuring CS and also the criteria
which make CS measurements more likely as a driver of financial performance when they
are satisfied.

In today market-oriented business environment, it can be said arguably that the

question how to satisfy customers becomes the ultimate concern of most of the companies in
any kind of business. Therefore, understanding customer satisfaction (CS) dimensions,
measuring it and taking advantage from these measurements become the urgent need
for managers and establish the mainstream in academic literature about CS in the recent
past. CS is important to measure because of its significant impacts on firms’ long-term
performance and also customer purchasing behaviors. In the academics, consistently
providing high CS is well acknowledged to be associated with higher customer loyalty
and enhanced reputation (Fornell, 1992; Anderson & Sullivan, 1993; Wangnheim &
Bayon, 2004). Customer loyalty is considered as the outcome of a process beginning with
customer satisfaction (Oliver, 1999). There exist definitely other factors other than
customer satisfaction that form the customer loyalty and retention such as personal
determinism and social factors. But satisfaction is a necessary step in loyalty formation
(Oliver, 1999). CS can also supply a higher barrier against switching to other competitors.
Loss cost and move-in cost were positively significant related to the CS (Kim, Park &
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Jeong 2004). Exploring the relationship between CS and the economic return is also one of
the most interesting topics. Anderson, Fornell and Lehmann (1994) attempted to explore
the relationship between CS and financial returns using a national customer satisfaction
index (NCSI) and ROI (return on investment). They found the significantly positive
association between ROI and CS but not immediately realized. Ittner and Larcker
(1998) found that CS is a leading indicator of customer purchasing behavior, growth in
the number of customers, and accounting performance. Banker, Potter and Srinivasan (2000)
used operating profits per available room to measure financial performance and verified its
lead-lag relation with CS for 18 hotels managed by a hotel corporation. However, there were
also quite
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Chapter 3

Company/ industrial profile

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HISTORY OF THECOMPANY
During the year 1967 Government of Kerala took a policy decision to the effect
that Chitties / Kuries should be conducted under State auspices. The then
Finance
Minister in his budget speech for financial year 1967-68 made the following
announcement on the floor of the Assembly:
“I view this decision as a bold step forward along the path towards
socialism,
aimed at bringing banks and other financial institutions under social
control”.
The Chitty/Kuri business being what it is, there existed ample scope for
exploitation of the ignorance, indifference and gullibility of the needy people by
unscrupulous promoters, who organized financial institutions in the name of
chitty/kuri fund in order to mobilize fluid resources in their own interest and
appropriate for themselves substantial profit accrued out of such
organizations.
Government wanted to introduce a check on the unbridled growth of such
financial
institutions with a view to safeguard the interest of the general public and at
the
same time to channelise the savings so consolidated for productive purposes.
With
these objectives, Government appointed a Special Officer in the year 1967 to
prepare a comprehensive scheme for starting chitties and kuries under
Government
control. The Special Officer presented his report on 7th October 1967
analyzing all
aspects involved in the proposal and recommending strongly the entry of
Government in the field of chitties and kuries. Though the recommendation
was
for conducting the business as an adjunct of the Registration Department,
Government, however, took a different view and decided to bring within the
purview of Government control not only chitties/kuries but also some other
financial transactions for which socialsation was felt necessary. Hire purchase
9 Project Submitted by _______________
financing and insurance were the new areas suggested for inclusion within the
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ambit of the proposed organization.

Accordingly, Government decided to organize a public sector undertaking with
the
name ‘The Kerala State Financial Enterprises Limited’ for the purpose of
conducting Chitty, Hire Purchase and Insurance business under Government
control.
The Kerala State Financial Enterprises Limited is fully owned by the
Government
of Kerala and is the first Public Sector Company to conduct chit business in
the
whole of India. It was incorporated on 6th November 1969 with its registered
office
at Trichur. It has an authorized capital of Rs.25 lakhs divided into 25,000
equity
shares of Rs.100 each and a paid up capital of Rs.2 lakhs as initial
contribution
from Government of Kerala. The share capital contribution of Government was
progressively increased from Rs.2 lakhs to Rs.7 lakhs in the year 1970-71, to
Rs.12 lakhs in the year 1971-72, to Rs.15.5 lakhs in the year 1972-73, to
Rs.20.5
lakhs in the year 1973-74, to Rs.27 lakhs in the year 1974-75, to Rs.28 lakhs
in the
year 1977-78 and to Rs.38 lakhs in the year 1987-88. The authorized capital
was
raised to Rs.50 lakhs in the year 1974-75 and to Rs.100 lakhs in the year
1989-90.
The Management of the company is vested in the Board of Directors
constituted
by Governor from time to time. The number of Directors shall not be less than
2
and shall not be more than 9. The maximum number has been subsequently
raised
to 15. The Directors shall hold office during the pleasure of the Governor. The
Governor may, from time to time, appoint 2 Directors other than the Managing
Director as Chairman and Vice Chairman of the Board. The first Board was
constituted as per Government Order No.G.O. (RT) 4876/69/Fin. Dated 26th
November 1969 and they assumed charge on 28th November 1969. The
Managing
10 Project Submitted by _______________
Director

Director is appointed by the Governor on such terms and remuneration as he

may
think fit from among the Directors for the conduct and Management of the
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business of the company subject to the control and supervision of the Board of
Directors.
General Body representing the shareholders shall be the supreme governing
body
of the Company.

OBJECTIVES OF THE COMPANY

The objectives of the company are listed in the Memorandum of Association of
the
company. The important objects are as follows:
(a) To start, conduct, promote, manage and carry on the business of
chitties
in India or elsewhere.
(b) To promote, undertake, organize, conduct, manage and carry on the
business of general and miscellaneous insurance of any kind in India or
elsewhere.
To start, promote, conduct, operate, carry on and manage the business of
dealers,
agents and traders under hire purchase system of articles, vehicles,
machinery,
materials goods and tools, of all capital goods and consumer goods and
property of
all nature and description for personal, domestic, office, commercial, industrial
and community use and consumption as a business of the Company or as
agents of
the Government, State or Central or any body or organization there under or
of any
other Company. Besides these objects, there are many other objects, which is
incidental or ancillary to the main objects such as to advance, deposit with or
lend
money, securities, property or to receive loans or grants or concession of any
nature or deposits from Banks, Government
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Questionnaire?

1.name

2.Gender

a)Male b) Female

3.Age

a)Below 30 b)41-50 c)31-40 d) Above 50

4.Educational Qualification

a)Primary b)Secondary c)Graduate d)Post Graduate e)Professional

Degree

5.Marital Status

a)Married b)Unmarried

6.Annual Saving

a)Up to 10,000 b)10,000-25,000 c)25,000-50,000 d)50,000-1,00,000

e)Above 1,00,000

7.Family Size

a)Up to 2 b)3 to 5 c)6 to 8 d)Above 8

8.What is the primary goal for investing in KSFE

a)Education b)House Construction c)For Marriage Purpose d)Other

Purpose

9.Are you interested investing in chit fund at KSFE

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a)Yes b)No

10.Which job category you belong to?

a) Govt b) Private c) Business d) Others

11.How you paying the installment?

a)Through Agent b) Branch

12.Which chit period you life to prefer?

a)40-60 b) 60-80- c) 80-100 d) 100-Above

13.In which chits group are you interested to job ? chits amount

Rs1 lakh Rs 5 lakh Rs 10 LAKH Rs25 LAKH &Above

14. when do you normally bid for the chit?

a)B/w nd-10th month b) B/w 11th 20th month c) B/w-21th-30th month d)

30th month onwards e) AS need arises

15. For what purpose do you use the chit amount?

a) Business investment b) personal purpose

c)Private property

16.Which type of security, you choose when draw a chit?

a) property b) Govt : Employee c) Gold d) othe

17. what according to you are the advantages of chit fund?

a) Money is Easily & quickly available b) repayment in easy instalment

c) The profits distributed as dividend d)Interest is low Easy membership

18. Does investing in chits gain more profit than any other financial
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Institution?

a) Yes b) No

CHAPTER 4

Data analyzing and interpretation

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1 Annual Saving
Saving Percentage%
Up to 10,000 10
10,000-25000 10
25,000-50,000 20
50,000-1,00,000 20
Above 1,00,000 30
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2 Family Size
Size Percentage%
Up to 2 10
3 to 5 40
6 to 8 30
Above 8 20
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3 Prefering period
Chit period in Month Percentage
40-60 40
60-80- 25
80-100 20
100-&Above 15
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job category of customers

4 Job category Percentage
Govt 40
Private 20
Business 30
Other 10
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5 Paying installment

installment Percentage%

Through Agent 40

Branch 60
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CHITTY GROUP

Chitty Amount Percentage

1-2Lakh 30

2-5 Lakh 40

5-10 Lakh 20

10 Lakh & Above 10

Column1
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Normally Bid for the Chit

customer bid percentage %

B/w-10th month 35
B/w-11th-20th month 25
B/w-21th-30th month 20
B/w-30th month onwards15 15
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purpose of use the chit amount

usage of chits amount percentage %

Business investment 35
Private property 10
personal purpose 40
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Type of security given by the chits

Type of securites percentage %

property 45
govt employee 40
gold 5
others 10
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11 custamer advantage of chits funds

Advantages Percentage
Money is easily & quickly avaiable 30
Repayment in easy instalment 40
The profit distributed as dividend 20
Interest is iow 10
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9 Gaing more profit any other finacial institution

Finacial institution Percentage

Yes 70
No 30
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CHAPTER 5
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FINDINGS

o Govt: employee preferring KSFE other then other

customer

o 70% customer are paying instalment through

Branch

o Majority customer preferring the chit period b/w

40 to 50 month

o 70% customer believe that KSFE is more

o Profitable any other financial institutions

o Majority of customer using their the chit

amount the personal purpose
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SUGGESTIONS

 To provide more door to door collection agents

 Instalment collection through agent will create

more customer

 Need more KSFE product awareness

in customer in rural area

 Many customer suggested short term chits for

25000, 50000
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CONCLUIONS

I conclude customer are satisfied customer are believe KSFE easily

payable

KSFE is a Govt: financial institution. So the customer feeling

security for these deposit and its easily accessible to all the
locality .
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BIBILOGRAPHY

www.ksfe.com

http:/en.wikipedia.org

google.com