Professional Documents
Culture Documents
Submitted to the
By
Ankit Singh
08MBMA12
For Getting A Copy Contact
ankitvns2007@gmail.com
MBA 2008-2010
Assistant Professor
University Of Hyderabad
DECLARATION
This to declare that the project title “Customer Satisfaction Survey on Banks” is
an authentic record of my original work carried out under the guidance of Dr.
Chetan Srivastava, Assistant Professor in Marketing, School of Management
Studies, University of Hyderabad.
The project work has been carried out solely for the purpose of submission
in partial fulfillment of Master of Business Administration at School of
Management Studies, University of Hyderabad.
I further declare that I have not submitted this document to any other School,
University, or Institution in whatever manner.
08MBMA12
ACKNOWLEDGEMENTS
The report contains the brief description of the Banking Industry in India. It contains the
findings and analysis of the survey conducted to gather primary data to judge the importance
of various attributes that influence the satisfaction of customers in different manner and to
the different extent. These attributes are classified as Initial Experience, Service Delivery
Experience, Service Experience, Relationship Experience, and Grievance Handling. Further
an attempt has been made to know the overall satisfaction of the customers. The attempt has
also been made to categorize investors based on various demographic factors such as age,
income, etc. and to present a comparative analysis of the various demographic factors. The
size of the sample is limited to 120 only.
More than 50 % of the respondents are using fixed deposits and saving bank account
services of the banks. The highest number of respondents belongs to State Bank of India
Group followed by ICICI Bank, Andhra Bank, HDFC Bank and Bank of Baroda
Respectively. More than 40% of the respondents are the customers of the bank from more
than 10 years. Nearness to bank is the most important factor affecting the choice of more
than 30% followed by reputation of the bank which holds more than 25% of the share.
The data relating to customer satisfaction is analyzed using Analysis of Variance. The
analysis shows that customers give equal importance to all the attributes under each
classification to rank their satisfaction. The attributes under each category are ranked
according to their Weighted Average Mean. In terms of Initial Experience, Quality of
response to customer queries is considered most important to judge the customer satisfaction
and ICICI bank is at the top on this criteria. In terms of Service Delivery Experience,
Timeliness of service delivery is ranked most important and SBI is at the top. In terms of
Service Experience, Level of need fulfillment vis-à-vis expected is considered most
important and SBI is again at the top. In terms of Relationship Experience, Frequency and
quality of contact is considered most important and HDFC bank is leading the other banks.
Finally in terms of Grievance Handling, Quality of complaint resolution is considered to be
most important and SBI is again leading in on this criteria.
2. Table of Contents
Certificate
Declaration
Acknowledgements
1. Executive Summary 1
2. Table of Contents 2
3. History of Indian Banking Industry 8-9
4. Background and Need for Study 10
5. Statement of Problem 10-11
6. Objective of Study 12
7. Testable Hypothesis 13
8. Limitations of Study 13
9. Theoretical Framework 14
10. Literature Review 15-22
11. Research Methodology
(a) Designing of Questionnaire 23-24
(b) Duration of Study 24
(c) Sample Selection 24
12. Data Collection and Analysis 24-35
13.Findings of the Study 64-65
14.Suggestions 66-67
15.Bibliography and References 68
16.Annexure I-II 69-72
3. HISTORY OF THE INDIAN BANKING INDUSTRY
The first bank in India, though conservative, was established in 1786. From 1786 till today, the
journey of Indian Banking System can be segregated into three distinct phases. They are as
mentioned below-
First Phase –
The General Bank of India was set up in the year 1786. The East India Company
established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as
independent units and called it Presidency Banks. These three banks were amalgamated in 1920
and Imperial Bank of India was established which started as private shareholders banks, mostly
Europeans.
In 1865 Allahabad Bank was established and first time exclusively by Indians. Then
Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and
1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and
Bank of Mysore were set up. The Reserve Bank of India the central bank of India came in 1935.
During the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To
streamline the functioning and activities of commercial banks, the Government of India came up
with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act
1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with
extensive powers for the supervision of banking in india as the Central Banking Authority.
Second Phase –
Government took major steps in this Indian Banking Sector Reform after independence.
In 1955, it nationalised Imperial Bank of India with extensive banking facilities on a large scale
especially in rural and semi-urban areas. It formed State Bank of india to act as the principal
agent of RBI and to handle banking transactions of the Union and State Governments all over the
country.
Before the steps of nationalisation of Indian banks, only State Bank of India (SBI) was
nationalised. It took place in July 1955 under the SBI Act of 1955. Nationalisation of Seven State
Banks of India (formed subsidiary) took place on 19th July, 1960.
In 1969, major process of nationalisation was carried out. 14 major commercial banks in
the country were nationalised. Second phase of nationalisation Indian Banking Sector Reform
was carried out in 1980. Seven more banks were nationalised with deposits over 200 crores. This
step brought 80% of the banking segment in India under Government ownership.
Third Phase –
This phase has introduced many more products and facilities in the banking sector in its
reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up
by his name which worked for the liberalisation of banking practices. The country is flooded
with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to
customers. Phone banking and net banking is introduced. The entire system became more
convenient and swift. Time is given more importance than money.
Steps taken by Government to regulate banking institutins in the country-
(b) Duration of Study- The survey is conducted for a period of three months starting from
January 2010 to March 2010.
(c) Sample Selection- The survey is conducted on 120 persons out of whom 37 respondents are
the customers of SBI, 21 of ICICI, 13 of Andhra Bank, 12 of HDFC Bank, 17 of Bank of
Baroda, and rest were of other banks. The sample for study includes 24 Government Employees,
44 Private Sector Employees, 35 Self-Professionals, and 21 housewives so as to get effective
results. The survey was conducted in certain areas of Hyderabad.
12. Data Collection and Analysis- The report is based on primary data only. Primary data was
collected through the above designed Questionnaire using telephone calls, e-mails and also
personally interviewing the respondents. The data is analyzed using the correlation analysis, chi-
square test and analysis of variance. The profile of the investors is given below-
INVESTOR PROFILE
SEX
Male 83
Female 37
AGE
Below 30 25
30-40 42
40-50 32
50 and above 21
OCCUPATION
Salaried 68
Businessman/Professional 35
Housewives 21
ANNUAL INCOME
Below 2,00,000 31
2,00,000-3,00,000 46
3,00,000-4,00,000 23
Above 4,00,000 20
PRODUCTS
Fixed Deposits 27
Saving Account 42
Current Account 35
Other 16
BANKS
State Bank Group 37
ICICI Bank 21
Andhra Bank 13
HDFC Bank 12
Bank of Baroda 18
Other Banks 19
RELATIONSHIP WITH BANK
Less than 3 Year 21
3-5 Years 25
5-10 Years 23
More Than 10 Years 51
FACTORS AFFECTING CHOICE
Ownership/ Reputation 31
Nearness/Accessibility 42
Commercials 24
Friends/Family 23
A. INITIAL EXPERIENCE-
NO OF
RANKING
ATTRIBUTES RESPONDENTS
(Based on Weighted Average)
1 2 3 4 5
Level of product Quality of response to
42 32 24 14 8 One
Knowledge of bank staff customer queries
Understanding of
Quality of response to
50 34 22 12 2 Two customer’s needs and
customer queries
unique perspective
Understanding of Presentation,
customer’s needs and 48 40 18 6 8 Three Communication and
unique perspective Mannerism of staff
Availability and quality of Level of product
26 32 20 24 18 Four
brochures, sales material Knowledge of bank staff
Presentation,
Availability and quality of
Communication and 38 40 32 8 2 Five
brochures, sales material
Mannerism of staff
SUMMARY
Groups Count Sum Average Variance
Row 1 5 120 24 186
Row 2 5 120 24 352
Row 3 5 120 24 362
Row 4 5 120 24 30
Row 5 5 120 24 314
ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 0 4 0 0 1 2.86608
Within Groups 4976 20 248.8
Total 4976 24
The F Value is much less than the critical or table value which shows that customers
consider all the attributes as important while rating their satisfaction. Therefore the hypothesis
that customers consider all the attributes important while rating their satisfaction stands accepted.
The difference in the sample is due to random sampling error.
RANK OF BANK
ATTRIBUTES
1 2 3 4 5
Level of product
ICICI HDFC SBI BOB ANDHRA
Knowledge of bank staff
Quality of response to
ICICI HDFC ANDHRA SBI BOB
customer queries
Understanding of
customer’s needs and ICICI SBI ANDHRA HDFC BOB
unique perspective
Availability and quality of
HDFC ICICI SBI BOB ANDHRA
brochures, sales material
Presentation,
Communication and ICICI ANDHRA ANDHRA BOB SBI
Mannerism of staff
The above table ranks the banks in the sample on the basis of the data obtained from their
customers. In terms of Level of product Knowledge of bank staff, quality of response to
customer queries, understanding of customer’s needs and unique perspective, Presentation,
Communication and Mannerism of staff the ICICI bank ranks higher. In terms of Availability
and quality of brochures, sales material the HDFC bank is at the top.
It clearly shows that the private sector banks are able to offer a good initial experience to the
customers when compared with the public sector banks.
B. SERVICE DELIVERY EXPERIENCE-
NO OF
RANKING
ATTRIBUTES RESPONDENTS
(Based on Weighted Average)
1 2 3 4 5
Timeliness of service Timeliness of service
64 42 10 4 0 One
delivery delivery
Sharing of status while Sharing of status while
58 28 20 12 2 Two
work-in-progress work-in-progress
Quality and sophistication Behavior and mannerism
30 24 42 18 6 Three
of delivery of delivery staff
Level of congruence
Behavior and mannerism between time taken to
57 29 14 16 4 Four
of delivery staff deliver the services and
stipulated time
Level of congruence
between time taken to Quality and sophistication
44 36 22 10 10 Five
deliver the services and of delivery
stipulated time
Anova: Single Factor
SUMMARY
Groups Count Sum Average Variance
Row 1 5 120 24 774
Row 2 5 120 24 454
Row 3 5 120 24 180
Row 4 5 120 24 419.5
Row 5 5 122 24.4 234.8
ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 0.64 4 0.16 0.000388 1 2.866081
Within Groups 8249.2 20 412.46
Total 8249.84 24
The F Value is much less than the critical or table value which shows that customers
consider all the attributes as important while rating their satisfaction. Therefore the hypothesis
that customers consider all the attributes important while rating their satisfaction stands accepted.
The difference in the sample is due to random sampling error.
RANK OF BANK
ATTRIBUTES
1 2 3 4 5
Timeliness of service
SBI HDFC ICICI ANDHRA BOB
delivery
Sharing of status while
BOB ANDHRA SBI ICICI HDFC
work-in-progress
Quality and sophistication
SBI BOB ICICI ANDHRA HDFC
of delivery
Behavior and mannerism
ICICI HDFC ANDHRA SBI BOB
of delivery staff
Level of congruence
between time taken to
ANDHRA ICICI HDFC SBI BOB
deliver the services and
stipulated time
The above table ranks the banks in the sample on the basis of the data obtained from their
customers. In terms of timeliness of the service delivery and quality and sophistication of
delivery the State Bank of India is at the top. In terms of behavior and mannerism the ICICI bank
is leading the others. Bank of Baroda is at the highest level in terms of sharing the status of
service with the customers. Looking at Level of congruence between time taken to deliver the
services and stipulated time the Andhra Bank is at the top.
C. SERVICE EXPERIENCE-
NO OF
RANKING
ATTRIBUTES RESPONDENTS
(Based on Weighted Average)
1 2 3 4 5
Level of service quality Level of need fulfillment
26 10 22 34 28 One
vis-à-vis expectation vis-à-vis expected
Level of need fulfillment Level of service quality
64 36 14 4 2 Two
vis-à-vis expected vis-à-vis expectation
SUMMARY
Groups Count Sum Average Variance
Row 1 5 120 24 80
Row 2 5 120 24 682
ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 0 1 0 0 1 5.317655
Within Groups 3048 8 381
Total 3048 9
The F Value is much less than the critical or table value which shows that customers
consider all the attributes as important while rating their satisfaction. Therefore the hypothesis
that customers consider all the attributes important while rating their satisfaction stands accepted.
The difference in the sample is due to random sampling error.
RANK OF BANK
ATTRIBUTES
1 2 3 4 5
Level of service quality
ICICI SBI HDFC ANDHRA BOB
vis-à-vis expectation
Level of need fulfillment
SBI ICICI ANDHRA BOB HDFC
vis-à-vis expected
The above table shows that in terms of expected versus actual quality ICICI bank is able to
satisfy the customers the most whereas the State Bank of India is able to fulfill the expected
needs of the customers in a better manner.
D. RELATIONSHIP EXPERIENCE-
NO OF
RANKING
ATTRIBUTES RESPONDENTS
(Based on Weighted Average)
1 2 3 4 5
Frequency and quality of Frequency and quality of
58 28 14 16 4 One
contact contact
Knowledge of company Knowledge of company
products and customer 42 38 22 12 8 Two products and customer
opportunities opportunities
Conduct and Conduct and
Communication of 24 28 18 28 22 Three Communication of
relationship person relationship person
SUMMARY
Groups Count Sum Average Variance
Row 1 5 120 24 434
Row 2 5 122 24.4 230.8
Row 3 5 120 24 18
ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 0.533333 2 0.266667 0.001172 0.998829 3.885294
Within Groups 2731.2 12 227.6
Total 2731.733 14
The F Value is much less than the critical or table value which shows that customers
consider all the attributes as important while rating their satisfaction. Therefore the hypothesis
that customers consider all the attributes important while rating their satisfaction stands accepted.
The difference in the sample is due to random sampling error.
RANK OF BANK
ATTRIBUTES
1 2 3 4 5
Frequency and quality of
HDFC ICICI ANDHRA BOB SBI
contact
Knowledge of company
products and customer ICICI SBI HDFC BOB ANDHRA
opportunities
Conduct and
Communication of ICICI BOB SBI ANDHRA HDFC
relationship person
The above table ranks the banks in the sample on the basis of the data obtained from their
customers. In terms of frequency and quality of contact the HDFC bank is at the top. In terms of
knowledge of the company products and conduct and communication of the relationship person
the ICICI bank is leading the others.
This again shows that private sector banks are able to give a good relationship experience to their
customers as compared to the public sector banks.
E. GRIEVANCE HANDLING-
NO OF
RANKING
ATTRIBUTES RESPONDENTS
(Based on Weighted Average)
1 2 3 4 5
Timeliness of complaint Quality of complaint
30 24 42 18 6 One
resolution resolution
Quality of complaint Level of iterations till the
56 30 14 16 4 Two
resolution complaint was resolved
Knowledge and empathy
Level of iterations till the
44 36 22 11 9 Three of the customer servicing
complaint was resolved
staff
Knowledge and empathy
Timeliness of complaint
of the customer servicing 24 28 18 28 22 Four
resolution
staff
SUMMARY
Groups Count Sum Average Variance
Row 1 5 120 24 180
Row 2 5 120 24 406
Row 3 5 122 24.4 235.3
Row 4 5 120 24 18
ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 0.6 3 0.2 0.000953 0.999958 3.238872
Within Groups 3357.2 16 209.825
Total 3357.8 19
The F Value is much less than the critical or table value which shows that customers
consider all the attributes as important while rating their satisfaction. Therefore the hypothesis
that customers consider all the attributes important while rating their satisfaction stands accepted.
The difference in the sample is due to random sampling error.
RANK OF BANK
ATTRIBUTES
1 2 3 4 5
Timeliness of complaint
ICICI SBI HDFC ANDHRA BOB
resolution
Quality of complaint
SBI BOB ANDHRA ICICI HDFC
resolution
Level of iterations till the
ICICI HDFC SBI BOB ANDHRA
complaint was resolved
Knowledge and empathy
of the customer servicing ICICI HDFC BOB SBI ANDHRA
staff
The above table ranks the banks in the sample on the basis of the data obtained from their
customers. In terms of timeliness of the complaint resolution, level of iterations till the complaint
is resolved and knowledge and empathy of the customer servicing staff the ICICI bank ranks the
highest. In terms of quality of complaint resolution the State bank of India rank the highest.
1. NAME ______________________________
2. E-MAIL ___________________________________________
6. Which environmental forces influenced you the most to select your bank?
[ ] Ownership/Reputation [ ] Nearness [ ] Commercials [ ] Friends/Family
GIVE MARKS OUT OF 5 TO EACH OF THE FOLLOWING ATTRIBUTES BASED ON
YOUR SATISFACTION FROM SERVICES OF THE BANKS-
INITIAL EXPERIENCE
RELATIONSHIP EXPERIENCE
GRIEVANCE HANDLING
OVERALL SATISFACTION-
Thank You