Professional Documents
Culture Documents
RESEARCH REPORT
ON
Institute of Management
Studies
C-238, BULANDSHAHAR G.T. ROAD, LAL QUAN, P.B. NO. 57,
Ghaziabad-201009
PREFACE
ANKIT BANSAL
TABLE OF CONTENTS
1. Preface
2. Acknowledgement
3. Introduction
• Introduction to Project
• Profile of HSBC
• Customer Satisfaction
4. Research Methodology
5. Data Analysis
6. Findings
7. Limitations
8. Conclusion
9. Recommendations
10. Appendix
11. Bibliography
INTRODUCTION TO THE PROJECT
The project which we have undertaken tries cover the main objective to
find out customer satisfaction criteria for credit card. It also tried to
cover following aspects. This will lead to certain implication for
credit cards companies as to how they can formulates their future
strategies in order to increase there sales. We have tried going in
details and studying the purchase of credit card from different
angles so, as to analyze the issue from 3600 . The research tries to
develop an understanding on the following aspects too. Which on
the whole will help us in understanding the consumer behavior for a
credit card in a holistic view.
What are the things that a consumer needs to look for in a credit card
before deciding to purchase it.
VISA
CREDIT CARDS
If you carry a balance, credit cards can be like expensive loans
made by banks, gasoline companies and department stores. The
credit card issuer gives you a card. You use the card to pay for
items and services up to certain total amount-your credit “limit”
The store merchant or services provider collects what you owe
from the card issuer, whom you replay. You’re allowed to pay off
what you owe little by little each month, as long as you pay a
minimum amount each time. You’re charged interest on the
balance you owe ( as high as 26% each year) at the end of each
period, unless you pay the full balance each time your bull
arrives.
Credit cards yield profits to their issuers for several reasons. The
most important is the high rate of interest-interest on credit cards
alone accounts for the bulk of the profit earned by banks that
issue credit card, and most companies charge late fees, over-
the-time fees and other miscellaneous charges. Finally, the
companies profit by charging merchants and service providers a
fee each time a customer uses the company’s credit in the
merchant’s establishment.
CHARGE CARDS
Charge cards, also called travel and entertainment cards, are a
little different from credit cards. Charge cards, such as American
Express and Diners Club, have no credit limit. You can usually
charge as much as want, but you are required to pay off your
entire balance when your bill arrives, with one exception. It you
charge air fare, cruise fees or hotels fees for a hotel room
booked through a travel agent on an American Express card,
you pay off your balance over 36 months. You’ll be charged
between 19% and 21% interest and will have to make minimum
monthly payments of $20, or 1/36 of your balance, whichever is
greater.
If you don’t pay your charge card bill in full, you’ll get a one-
month grace period, when no interest is charged. After that,
you’ll be charged interest that averages about 18%. It you don’t
pay after about months, three months, your account will be
closed and your bill sent to the collections departments.
CASH ADVANCES
Many people use their credit or charge cards to obtain cash
advances, Cash advances are generally more expensive than
standard credit card charges. Most banks charge a transaction
fee up to 4% for taking a cash advance. They also charged
interest from the date the cash advance is posted, even if you
pay it back in full when your bill comes. Finally , the interest rate
is often higher or cash advances than it is on ordinary credit card
charges.
ATM CARDS
ATM cards are issued by banks essentially to give bank
customers flexibility in their banking hours . in most areas, with
an ATM card you can withdraw money, make deposit, transfer,
money between accounts, find out your balance, get a cash
advance and even make payments at all hours of the day or
night.
DEBIT CARDS
Debit cards combine the functions of ATM cards and checks.
Debit card area issued by banks but are used at stores, not at
the banks themselves. When you pay with a debit card, the
money is automatically deducted from your checking account.
Many banks issue a combined ATM/Debit card that looks just
like a credit card and can be used in places where credit cards
are accepted. But don’t be mistaken- they are not credit cards.
The money you spend comes out of your checking account
immediately.
SMART CARD
Has an implanted computer chip incorporated in the card plastic
which gives it the power to perform many different functions like
having a PC in your wallet!
Multiple applications on the same card e.g.. credit, debit,
electronic cash, driving licenses, secure identification hence you
need to carry less cards in your wallet.
Chip can record data or value or both and can store up to 80
times more information than a magnetic chip.
Terminal on which the card is used has a chip reader in addition
to the magnetic stripe reader.
CO-BRANDED CARD
Banks enter each into partnership with a non-bank to market
credit cards.
Both parties are into the alliance for financial gain as the non
bank partner is a profit-making company with a good customer
base.
The bank gains an additional customer base while the non-bank
partner can offer credit cards to its members.
A customized card for a specific retailer or service provider, such
as shoppers Stop that wishes to solicits customers. The issuer
looks after the card operations while the co-branded partner
shared marketing costs and responsibility
E.g. Citibank-Jet-Airways Card, HSBC-PNB card.
AFFINITY CARDS
To grow a portfolio , the bank enters into partnership with a non-
bank to issue a card which may have a third party name on the
face of the card
If the non-bank partner is a non-profit organization , the card is
known as an affinity card.
As credit card issued by a member in conjunction with an
organization or collective group (e.g. a professional organization
or special interest group) which is identified on the card. The
issuer often pays the organization a royality per card or per
transaction charged.
e.g. Tollygunge Club card, Delhi Golf Club card.
PROFILE OF HSBC
Introduction
(HSBC)
Limited
1. Credit Card
a. HSBC Gold Card
b. HSBC Classic Card
2. Loans
a. Home Loans
b. Personal Loans
c. Educational Loans
d. Professional Loans
3. Account
a. Savings Account
b. Fixed Account
c. Demat Account
d. Smart Money Account
e. Current Account
i. Business Select
ii. Business Vantage
iii. Business Account
4. Insurance
a. Personal Insurance
i. Life Insurance
ii. Home Insurance
iii. Hospital Cash Insurance
iv. Car Insurance
v. Personal Account Insurance
b. Business Insurance
5. Wealth Management
a. HSBC Premier
b. Power Vantage
c. Financial Planning Service
d. Business Select
e. Mutual Fund
6. NRI Services
a. Non Residents
b. Returning Non Residents
7. Corporate and Institutional Banking
a. Corporate Banking
b. Treasury and Capital Market
c. Institutional Banking
d. Equities, Corporate Finance And Advisory
e. Payment and Cash Management
i. Payment
ii. Collections
iii. Account Management
iv. Electronic Banking Hexagon
f. Trade And Factoring Services
i. Trade Services
ii. Factoring Services
iii. Precious Metals
iv. Custody And Clearing
Technology Used
Contribution to Society
1. Wide acceptability
2. Standard Fees
The annual fees for Gold and Classic Cards are given
below :
3. Rewards
Cardholders will get rewarded just for using their HSBC
Globally valid card for every Rs. 100 charged to the card
holders receive 1 reward point. These paoints can be
accumulated for the year and then redeemed against card
renewal fees, gits vouchers and card upgrade fees. A
minimum of 250 points has to be accumulated in order to
start redeeming.
5. Finance Charges
6. Travel Privileges
7. Insurance Benefits
• No need to carry
cash while
shopping in India
or abroad.
• Make only
minimum
payments & can
avail the credit
facility.
• Up to Rs. 50,000/-
per day
• No need to have
bank a/c & can
still withdraw cash
in case of
emergency.
• No need to have 2
different cards & 2
different pins.
• After
accumulating 250
bonus points, the
same can be
redeemed against
card renewal fees
and quality items.
• There is waiver of
payment of o/s on
the card up to Rs.
40k
• Claim can be
made within 180
days period from
date of purchase.
D. Zero Lost Card • In case of card • Protection
loss & reporting against misuse
Liability the same
immediately to the • Security
bank will prevent
any misuse of
card
• Amount billed in
INR which saves
on foreign
exchange.
• No joining fees
• No documentation
required
• The assistance
services also
include legal,
medical, travel &
other services.
CUSTOMER VALUE & SATISFACTION
Over 38 years ago, peter drucker deserved that a company first task is
“to create customer”. However, customer face a vast array of product
and brand choices, prices, and suppliers. How do they make their
choices we believe that customers estimate which offer will delivers the
most value customers are value maximizes, within the bound of search
costs and limited knowledge, mobility, and income they form an
expectation of value and act on it. Whether or not the offer lives up to
the value expectation offer both satisfaction and repurchase probability.
Our premise is that customer will buy from the firm that they see
as offering the highest precision value.
CONSUMER SATISFACTION
6. Findings
7. Suggestions
RESEARCH METHODOLOGY
- Random sampling
Strongly agree 4
Somewhat agree 8
Neither agree - nor disagree 33
Somewhat disagree 48
Strongly disagree 7
60
50 48
40
33
30
20
10 8 7
4
0
Strongly agree Somew hat agree Neither agree - nor Somew hat disagree Strongly disagree
disagree
You like to recommend your credit card to other
Strongly agree 14
Somewhat agree 16
Neither agree-nor disagree 20
Somewhat disagree 39
Strongly disagree 11
45
40 39
35
30
25
20
20
16
15 14
11
10
0
Strongly agree Somewhat agree Neither agree - nor Somewhat disagree Strongly disagree
disagree
You feel taking credit card was a good discussion
Strongly agree 13
Somewhat agree 26
Neither agree-Nor disagree 27
Somewhat disagree 24
Strongly disagree 10
30
27
26
25 24
20
15
13
10
10
0
Stronglyagree Somewhat agree Neither agree - nor Somewhat disagree Stronglydisagree
disagree
Which factors influenced you most to buy credit card
Price 11
Presentation of sales man 13
Free credit period 7
Teachers 6
Insurance cover 18
Cash withdrawal 11
Add on card 7
Reference group 20
Any other 7
20 18 20
18
16
13
14
11
11
12
10
7 7 7
8 6
0
Price Free credit Insurance Add on card Any other
period cover
From where did you come to know about your credit card
Salesman 36
TV 11
Newspaper 9
Bill board 8
Reference group 28
Any other 8
40 36
35
28
30
25
20
15 11
9
8 8
10
0
Salesman TV New spaper Bill board Reference group Any other
Would you like to switch over to another company’s credit card
Yes 47 No 53
Yes
47%
No
53%
Do you feel services provided by credit card are according to your
expectations?
Yes 23 No 77
Yes
23%
No
77%
Do you thick interest rate charged by credit card companies is reasonable?
Yes 6 No 94
Yes
6%
No
94%
After taking credit card is there any increase in your expenditure?
Yes 73 No 27
No
27%
Yes
73%
Do you feel credit card industry is a sinking boat in Indian context
Yes 61 No 39
No
39%
Yes
61%
FINDINGS
6. Customers are almost evenly divided over this question which shows
that them is no major product differentiation in the credit card and
customer perceive that all of the them are similar.
7. Clearly, the services of credit cards have not met the expectations of
customers
10.Almost two third of people feel that due to debit cards & other
facilities days of credit cards are going to be over.
LIMITATIONS
Despite the possible efforts in concluding the research, they were
some unavoidable situations, which limited the scope of the project.
Yes No
BIBLIOGRAPHY
6. www.indianinfoline.com
7. www.creditcardsbasic.com
8. www.mycreditcard.com