A STUDY ON CUSTOMER SATISFACTION OF COOPERATIVE BANKS AT

THIRUVALLUR DISTRICT

REVIEW OF LITERATURE:
1. Ali Naghi Mansour Beigi et al (2016) the research aimed to study the effects of
e-banking
services quality on customers’ satisfaction and loyalty. the results show that e-
banking services
quality has positive and significant effects on customer loyalty.
2. G. Shoba (2016) concludes that cluster analysis reveals that around 20% of the
respondents
are extremely satisfied, 38% of respondents are moderately satisfied and 42% of
respondent’s
posses’ least level satisfaction with lending practices provided by the Vaniyambadi
branch of
cooperative bank.
3. Suresh Chandra Bihari and Shovita Mahapatra (2016) In their study found that a
customer
gives highest impotence to reliability dimension, second to the responsiveness and
third to
assurance dimension. Tangibility is the least focused dimension for the customers.
Their study
revealed that the attributes, such as promptness of service, interest of the bank
employee in
serving the customers, care and concern, operating hours, service charges &
interest rates of the
bank are the most important key factors to be considered in achieving high end
customer
satisfaction.
4. A. Kavitha and M. Muthumeenaksh (2016) the study indicates positive opinion
toward the
service of bank and the behavior of employees for rendering services. .However,
compared to
other private and public banks, co-operative banks are lagging in adoption of
technology and
modern equipment. The co-operative banks will adopt more and modern
technologies for facing
competition and make their services more qualitative one.
5. Rachanaa Datey (2016) the benefits of CRM strategy those were focused on
banking were
always high. Banks have been slow to adopt the change due to complexity of the
relationships
and numerous touch-points in the CRM. With enhancements in technology and
good experience
in customer relationship management solutions, banks have started concentrating
on customer
relationship management.
6. H. S. Sethu and Bhavya Saini (2016) The study reveals that penetration of online
food
ordering services is high. The student users of these services are well versed with
the information
available on these websites and also use help services available online. The service
provider
foodzoned.com therefore needs to at least maintain the overall quality of service
levels.
7. Balwinder Singh and Ruchika Soni (2015) study is genuine attempt to
understand the
construct of customer satisfaction and the factor affecting customer satisfaction in
the urban cooperative
banking sector in the states of Punjab, Harayana, and Himachal Pradesh through a
qualitative approach. The very widely representation profile of respondents to
helps us to reply
and appropriately weight the above outcomes.
8. Pratap Chandra Mandal (2015) the study attempts to reviews the literature with
respect to
finding the dimensions affecting customer satisfaction in retail banking. It
concludes that the
generation of items and subsequently, dimensions affecting customer satisfaction
in retail
banking need to be done starting from the definitions of customer satisfaction.
9. Hayan Dib and Samaan Al-Msallam (2015) the study was undertaken to explore
the effects of
three customer perceptions (perceived quality, brand image, price fairness) on
customer
satisfaction and Brand loyalty. The study reveals that customer satisfaction
significantly affects
customer loyalty. Also, the factors of perceived quality , brand image and price
fairness affect
Brand loyalty. Customer perception of perceived quality, brand image and price
fairness are
almost equally to build up the satisfaction.
10. Meenu Kumar (2015) The study focuses on understanding customer’s
satisfaction from the
services provided by public sector banks using SERVQUAL model. The study
suggests that
perception of customers on Tangibility, Assurance, Empathy and Responsiveness
of
SERVQUAL model are less than expectation while it is more in case of Assurance.
11. Ramakrishna Mishra (2015) as defined service quality is how well the service
meets or
exceeds the customer expectation on a consistent basis. Service quality is more
abstract and
virtual as it is intangible and inseparable. The service quality aspect can be better
understood in
terms of five elements like - tangibles, reliability, responsiveness, assurance and
empathy. It was
concluded that the perception of service quality is not meeting the expectation of
customers with
respect to all its dimension chosen. There is a need to relook on the dimensions of
service
quality to meet the expectation level of customers.
12. Jothi Selvamuthukumar.A & Arul.M (2015) study concludes that banks need to
focus on
product innovation and look for activities to increase their bottom line revenue
with non-core
activity, efficient service delivery process, effective risk management and special
attention to
customer satisfaction.
13. Adisak Suvittawat (2015) The study reveals that the variables that showed the
highest service
quality results were: Customers perceive high safety and security, Bank has a
secure customer
information protection system, Bank employees are courteous, Bank employees are
knowledgeable and skilled, and Bank shows an interest in customer problem-
solving. The
variables that showed the lowest service quality results were: Bank employees
provide quick
service, Bank has a good layout for customer service, Bank has modern equipment
such as bank
book updates, Bank offers customers drinking water or coffee, and the Bank has
enough parking.
This means the bank needs to make improvements in these areas to improve its
competitiveness
advantage.
14. Neeraj Kumar Saddy (2015) the study shows that there are more risks in fund
based lending
than non fund based lending due to depletion of actual liquidity immediately. On
the contrary,
the experience of the banks, in general has been that the risk exposure in non-fund
based credit
facilities has been much higher than the fund based credit facilities.
15. Tran Van Quyet et al (2015) the study examined the relationships between the
five factors in
the SERVQUAL model and customer satisfaction with deposit services of
Vietnamese
commercial banks. The results revealed that, all five factors were positively related
to customer
satisfaction. However, reliability had only partial support, indicating a need to
improve reliability
for VCBs wishing to be more competitive in the market.
16. BOB YUILL (2015) has underlined the importance of measuring and
developing member
engagement and loyalty needs in cooperatives. Member loyalty strategy and the
process to
measure member loyalty has been proving to be a powerful tool for cooperatives.
17. Tran Van Quyet et al (2015) the results of the study revealed that all five
factors of
SERVQUAL studied during the study were positively related to customer
satisfaction. However,
reliability had only partial support, indicating a need to improve reliability for
Vietnamese
commercial banks, wishing to be more competitive in the market.
18. Bharati R. Hiremath and Mamata Bannur (2014) the study investigate the
financial
performance of Bijapur District Central Co-operative Bank Ltd., Bijapur. The
study was a
exploratory research design which is completely based on secondary data. The
study revealed
that there was significant growth in the deposits mobilization, membership, loans
and advances,
working capital, reserves, owned funds, Total income, Total expenditure and over
dues with
reference to BDCC Bank Ltd., Bijapur.
19. S.Velanganni (2014) study reveals that improved people, process and physical
evidence
aspect of service quality help in increasing customer satisfaction. These results
confirmed the
past research results. Improved human, technical and tangible aspects of service
quality increase
customer satisfaction.
20. B. Muniraja Sekhar et al (2014) the various committees and empirical studies
reviewed
proved that bank marketing had not been fully adopted in India in all its aspects. In
certain areas
like deposit mobilization and publicity were undertaken here and there. Customer
satisfaction,
the sine qua non of bank marketing has been given adequate emphasis only
recently.
21. R. Prakash Babu et al (2014) study reveals that banks should use new
technology to
improvise on operational efficiency and introduce automation for reducing
unproductive and
costly operations. The banks should make every effort to enhance customer
satisfaction. Banks
should try to improve quality of service through effective staff training, service
monitoring,
orientation and recognition programmes.
22. A. Lenin Jothi (2014) found that, attributes under the three dimensions namely,
Responsiveness, Assurance and Empathy are the major short falls of service
quality rendered by
banks. Politeness of the staff, Ability of staff to answer questions, Personal
attention paid,
Understanding customer’s need, Sensitiveness to customer’s best interest and
Convenient
operating hours are the areas in which banks have to give more importance while
providing
quality services to their customers.
23. M.Rajeswari (2014) after the study concludes that banks need to manage the
credit risk
inherent in the entire portfolio as well as the risk in individual credits or
transactions. Banks
should also consider the relationships between credit risks and other risks. The
effective
management of credit risk is a critical component of a comprehensive approach to
risk
management and essential to the long term success of any banking organization.
24. R.A. Chanaka Ushantha et al (2014) The study revealed that consumers have
higher level of
positive perception of SERVPERF dimensions. All dimensions contributed
significantly - i.e.
‘reliability’, ‘assurance’, ‘empathy’, ‘tangibles’ and ‘responsiveness’- towards the
service quality
in state banks in Sri Lanka. It has also been mentioned that, there is a strong
positive linear
relationship between overall service quality and customer satisfaction in state
banks in Sri Lanka.
25. Zahir Osman and Ilham Sentosa (2014) The findings suggest that the
relationship between
customer satisfaction and profitability may reside in customer satisfaction’s
influence on
customer loyalty, and the customer satisfaction plays a crucial role within the
Malaysian
commercial banking industry.
26. Ravi C.S & Kundan Basavaraj (2013) investigated the preference and
satisfaction level of
customer toward loans, deposits schemes, insurance and value added services
rendered by public
banks and private banks in Shivamogga district. Business and vehicle, loans are
fast moving than
other services and overall satisfaction resulted at 50%. Further, overall satisfaction
on bank
deposit schemes resulted positively while other services of banking still need to be
given
attention by focusing on customer issues. New innovative schemes, strategies to
cater to nonusers,
other services have to be adopted.
27. Snehalkumar H. Mistry (2013) focused on the factors affecting customer
satisfaction in
banks and analyzes their effects. It is revealed that customer satisfaction is the key
for many
banks to survive competition. Customer gives third preference to assurance factor,
it include
criteria like safety of transaction, consistency in service etc. So, banks whether
they are private
sector bank or public sector bank they should give more focus on increasing
reliability,
responsiveness and assurance. For that they can give training to their employee
which will help
them to give personalized service.
28. Shahnaz Nayebzadeh et al (2013) the findings of the study demonstrate that
there is a strong
positive relationship between customer’s satisfaction and loyalty at 95 percent. The
satisfaction
and loyalty variables are significantly related to the bank performance at 90
percent.
29. Pouria Jahanbakhshian (2013) the findings indicate that banks use E-CRM
mostly for mass
customization, customer profiling, self service, one to one interaction and
automatic locks in
flow of financial data like security prices which ultimately results in reduced cost
of operation
and increased customer loyalty and more profits. So the E-CRM as a component of
E-marketing
is a most important tool for the bank to maintain their customer's relationships.
Banks need to
equip themselves with internal capabilities and build efficient business models
using Emarketing
techniques to take the advantage of new opportunities available into a long term
sustainable competitive advantage.
30. Indira R. (2004) attempted to contribute the co-operative banking efficiency
literature by
investigating the financial performance of co- operative banks operating in Tumkur
District. The
result provide valuable insides to policy makers and mangers for improving the
efficiency in
management of the co-operative banking sector.

OBJECTIVES OF THE STUDY:

1. To find out the reasons behind the selection of urban cooperative bank for
availing loans and or depositing money.
2. To assess the customer satisfaction and service quality of urban cooperative
banks
3. To make proper investment of the deposited amount by the customer and
provide them proper interest rate in their saving.
4. To continue encourage the members to develop saving habit to its customer.

QUESTIONNAIRE
1. Name:
2. Gender
a, male b, female c, transgender
3. Age
a, 18 -25 years b, 26 – 31 years c, 32- 40 years d, above 41
4. Marital status
a, married b, unmarried
5. Educational Qualification
a, 10th b, 12th c, UG d, PG
6. Occupation
a, Private employee b, Government employee c, Student d, others
7. Annual income
a, below 10000 b, 10000-20000 c, 20000-30000 d, above 30000
8. Do you have account in cooperative banks
a, strongly agree b, Agree c, Strongly disagree d, Disagree
9. Do you any issues with having an account in cooperative banks
a, strongly agree b, agree c, strongly disagree d, disagree
10.Do you any difficulties in the procedure to open an account
a, Strongly agree b, Agree c, Strongly disagree d, disagree
11.What kind of account you have?
 a, Joint account b, saving account c, current account e, others
12. Does the employees in the bank treat you in a proper way
a, Strongly agree b, agree c, strongly disagree d, disagree
13. How do you come to know about cooperative banks?
a, advertisement b, Family and Friends c, Social media d,
others
14.Having an account in banks creates you a saving mined person
a, strongly agree b, agree c, strongly disagree d, disagree
15. While depositing money you find difficulties
a, strongly agree b, agree c, Strongly disagree d, disagree
16.While collecting do you find any change in behavioural manner of the bank
employees
a, strongly agree b, agree c, strongly disagree d, disagree
17.How long do you an account in cooperative banks
a, less than 1 year b, 1 – 3 years c, 3 – 5 years d, more than 3
years
18. Do you think cooperative bank main aim is
a, service motive b, Profit motive c, Both a and b d, others
19. Do you feel cooperative bank should also commence in rural areas
a, strongly agree b, agree c, strongly disagree d, disagree
20. Does cooperative bank gives loan to start new business
a, Yes b, No c, may be
21. Do you suggest others to open an account in cooperative banks
a, strongly agree b, agree c, strongly disagree d, disagree
22.Any suggestions to improve cooperative banks ___________________