A

PROJECT REPORT
ON
QUALITY ISSUES OF HDFC BANK RELATED TO ENHANCING
CUSTOMER SATISFACTION (BOTH INTERNAL
AND EXTERNAL) TO ENSURE LONG-TERM CUSTOMER
LOYALTY

In fulfillment of the requirements for

Master of Business Administration (MBA)
(2014-2015)

UNDER THE GUIDANCE OF:

Mr. UMESH KUMAR TIWARI
( Project Incharge)

SUBMITTED TO:

SUBMITTED BY:

Mr. Mahendra Dutt

Somedatt Tyagi

(Center Head)

Roll no. - 1302014427

LC Code- 01557

Sikkim Manipal University

Directorate of Distance Education

CERTIFICATE

This is to certify that Mr. Somedatt Tyagi, student of Sikkim Manipal

University has completed his Project report on Quality issues of HDFC
BANK related to enhancing customer satisfaction (both internal
and external) to ensure long-term customer loyalty in the year 2014-2015
final semester for partial fulfillment of Master Of Business Administration
(MBA) has successfully completed the project under my constant guidance and
support.

Signature of Project Guide

Mr. UMESH KUMAR TIWARI
Manager
HDFC Bank

DECLARATION

I hereby declare that the Project report titled Quality issues of HDFC BANK
related to enhancing customer satisfaction (both internal and external) to
ensure long-term customer loyalty is my original work and has not been
published or submitted for any degree, diploma or other similar titles elsewhere.
This has been undertaken for the purpose of partial fulfillment of Master of
Business Administration at Sikkim Manipal University.

Date: 12-12-2014

Somedatt Tyagi
Roll no.: 1302014427

PREFACE

This project report attempts to bring under one cover the entire hard work and
dedication put in by me in the completion of the project work on Quality
issues of HDFC BANK related to enhancing customer satisfaction (both
internal and external) to ensure long-term customer loyalty

I have expressed my experiences in my own simple way. I hope who goes

through it will find it interesting and worth reading. All constructive feedback is
cordially invited.

ACKNOWLEDGMENT

It is really a matter of pleasure for me to get an opportunity to thank all the

persons who contributed directly or indirectly for the successful completion
of the project report, Quality issues of HDFC BANK related to enhancing
customer satisfaction (both internal and external) to ensure long-term
customer loyalty.

First of all I am extremely thankful to my study centre for providing me with

this opportunity and for all its cooperation and contribution. I also express my
gratitude to my Project mentor and guide.

I am highly thankful to our respected project guide for giving me the

encouragement and freedom to conduct my project.
I am also grateful to all my faculty members for their valuable guidance and
suggestions for my entire study.
I would also like to thank the HDFC team for extending their valuable time
and cooperation.

Somedatt Tyagi

Roll No.: 1302014427

INDEX

CONTENTS
1. INTRODUCTION
2. COMPANY PROFILE
3. SERVICE QUALITY IN BANKS
4. RESEARCH OBJECTIVE
5. RESEARCH METHODOLOGY
6. DATA ANALYSIS
7. FINDINGS OF THE REPORT
8. CONCLUSION
9. RECOMMENDATIONS
10. BIBLIOGRAPHY
11. ANNEXURE: QUESTIONNAIRE

PAGE NO.

INTRODUCTION
Service with a smile:
Todays finicky banking customers will settle for nothing less. The customer has come to realize
somewhat belatedly that he is the king. The customers choice of one entity over another as his
principal bank is determined by considerations of service quality rather than any other factor.
He wants competitive loan rates but at the same time also wants his loan or credit card
application processed in double quick time. He insists that he be promptly informed of changes
in deposit rates and service charges and he bristles with customary rage if his bank is slow to
redress any grievance he may have. He cherishes the convenience of impersonal net banking
but during his occasional visits to the branch he also wants the comfort of personalized human
interactions and facilities that make his banking experience pleasurable. In short he wants
financial house that will more than just clear his cheque and updates his passbook: he wants a
bank that cares and provides great services.
So does HDFC bank meet these heightened expectations? What are the customers perceptions
of service quality of the banks? Which dimension of service quality of HDFC bank is performing
well? To find out answers to these questions I undertook a survey of 2 branches of HDFC bank.
A lot of surveys have been done in the past to understand the aspect of customer satisfaction and
to find out the customer friendly banks. My research is conducted to find out Quality issues of
HDFC BANK related to enhancing customer satisfaction (both internal and external) to ensure
long-term customer loyalty.

COMPANY
PROFILE

HDFC BANK
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered
office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial
Bank in January 1995.
HDFC Bank comprises of a dynamic and enthusiastic team determined to accomplish the vision
of becoming a World-class Indian bank. HDFC banks business philosophy is based on our
four core values - Customer Focus, Operational Excellence, Product Leadership and People.
They believe that the ultimate identity and success of their bank will reside in the exceptional
quality of people and their extraordinary efforts. They are committed to hiring, developing,
motivating and retaining the best people in the industry.

BUSINESS FOCUS
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound
customer franchises across distinct businesses so as to be the preferred provider of banking
services for target retail and wholesale customer segments, and to achieve healthy growth in
profitability, consistent with the bank's risk appetite. The bank is committed to maintain the
highest level of ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Bank's business philosophy is based on four core values - Operational
Excellence, Customer Focus, Product Leadership and People.

MISSION STATEMENT OF HDFC BANK

World Class Indian Bank.

Benchmarking against international standards.

To build sound customer franchises across distinct businesses

Best practices in terms of product offerings, technology, service levels, risk management
and audit & compliance

VISION STATEMENT OF HDFC BANK

The HDFC Bank is committed to maintain the highest level of ethical standards, professional
integrity and regulatory compliance. HDFC Banks business philosophy is based on four core
values such as:-

1. Operational excellence.
2. Customer Focus.
3. Product leadership.
4. People.
The objective of the HDFC Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-step window for all his/her
requirements. The HDFC Bank plus and the investment advisory services programs have been
designed keeping in mind needs of customers who seeks distinct financial solutions, information
and advice on various investment avenues.

BUSINESS STRATEGY

Increasing market share in Indias expanding banking

Delivering high quality customer service

Maintaining current high standards for asset quality through disciplined cred it
risk management

Develop innovative products and services that attract targeted customers and address
inefficiencies in the Indian financial sector.

DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 1229
branches spread over 444 cities across India. All branches are linked on an online real- time

basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's
expansion plans take into account the need to have a presence in all major industrial and
commercial centers where its corporate customers are located as well as the need to build a
strong retail customer base for both deposits and loan products. Being a clearing/settlement bank
to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE
has a strong and active member base.
The Bank also has a network of about over 2526 networked ATMs across these cities. Moreover,
HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard,
Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

PROMOTER
HDFC is India's premier housing finance company and enjo ys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain a market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has
developed significant expertise in retail mortgage loans to different market segments and also
has a large corporate client base for its housing related credit facilities. With its experience in the
financial markets, a strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

MANAGEMENT
Mr. C.M. Vasudev has been appointed as the Chairman of the Bank with effect from 6th July
2010 subject to the approval of the Reserve Bank of India and the shareholders. Mr. Vasudev has
been a Director of the Bank since October 2006. A retired IAS officer, Mr. Vasudev has had an
illustrious career in the civil services and has held several key positions in India and overseas,
including Finance Secretary, Government of India, Executive Director, World Bank and
Government nominee on the Boards of many companies in the financ ial sector.
The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years, and
before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.
The Bank's Board of Directors is composed of eminent individuals with a wealth of
experience in public policy, administration, industry and commercial banking. Senior
executives representing HDFC are also on the Board.
Senior banking professionals with substantial experience in India and abroad head various
businesses and functions and report to the Managing Director. Given the professional expertise
of the management team and the overall focus on recruiting and retaining the best talent in the
industry, the bank believes that its people are a significant competitive strength.

TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms of information technology
and communication systems. All the bank's branches have online connectivity, which enables
the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also
provided to retail customers through the branch network and Automated Teller Machines

(ATMs).
The Bank has made substantial efforts and investments in acquiring the best technology
available internationally, to build the infrastructure for a world class bank. The Bank's business
is supported by scalable and robust systems which ensure that our clients always get the finest
services we offer.
The Bank has prioritised its engagement in technology and the internet as one of its key goals
and has already made significant progress in web-enabling its core businesses. In each of its
businesses, the Bank has succeeded in leveraging its market position, expertise and technology
to create a competitive advantage and build market share.

QUALITY POLICY
SECURITY: The bank provides long term financial security to their policy. The bank
does this by offering life insurance and pension products.
TRUST: The bank appreciates the trust placed by their policy holders in the bank. Hence,
it will aim to manage their investments very carefully and live up to this trust.
INNOVATION: Recognizing the different needs of our customers, the bank offers a
range of innovative products to meet these needs.
INTEGRITY
CUSTOMER CENTRIC
PEOPLE CARE ONE FOR ALL AND ALL FOR ONE

TEAM WORK
JOY AND SIMPLICITY

BUSINESS
HDFC Bank offers a wide range of commercial and transactional banking services and treasury
products to wholesale and retail customers. The bank has three key business segments:

Wholesale Banking Services

The Bank's target market ranges from large, blue-chip manufacturing companies in the
Indian corporate to small & mid-sized corporates and agri-based businesses. For these
customers, the Bank provides a wide range of commercial and transactional banking
services, including working capital finance, trade services, transactional services, cash
management, etc. The bank is also a leading provider of structured solutions, which
combine cash management services with vendor and distributor finance for facilitating
superior supply chain management for its corporate customers. Based on its superior
product delivery / service levels and strong customer orientation, the Bank has made
significant inroads into the banking consortia of a number of leading Indian corporates
including multinationals, companies from the domestic business houses and prime
public sector companies. It is recognised as a leading provider of cash management and
transactional banking solutions to corporate customers, mutual funds, stock exchange

members and banks.

Retail Banking Services
The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and
delivered to customers through the growing branch network, as well as through alternative
delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus
and the Investment Advisory Services programs have been designed keeping in mind needs
of customers who seek distinct financial solutions, information and advice on various
investment avenues. The Bank also has a wide array of retail loan products including Auto
Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It
is also a leading provider of Depository Participant (DP) services for retail customers,
providing customers the facility to hold their investments in electronic form.
HDFC Bank was the first bank in India to launch an International Debit Card in association with
VISA (VISA Electron) and issues the Mastercard Maestro debit card as well. The Ba nk
launched its credit card business in late 2001. By March 2010, the bank had a total card base
(debit and credit cards) of over 14 million. The Bank is also one of the leading players in the

merchant acquiring business with over 90,000 Point-of-sale (POS) terminals for debit /
credit cards acceptance at merchant establishments. The Bank is well positioned as a
leader in various net based B2C opportunities including a wide range of internet banking
services for Fixed Deposits, Loans, Bill Payments, etc.

Treasury
Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalisation of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures. These and fine pricing on various
treasury products are provided through the bank's Treasury team. To comply with statutory
reserve requirements, the bank is required to hold 25% of its depo sits in government
securities. The Treasury business is responsible for managing the returns and market risk on
this investment portfolio.

SERVICE QUALITY
IN BANKS

In the days of intense competition, the banks are no different from any other consumer marketing
company. It has become essential for the service firms in general and banks in particular to
identify what the customer's requirements are and how those customer requirements can be met
effectively. In the days where product and price differences are blurred, superior service by the
service provider is the only differentiator left before the banks to attract, retain and partner with
the customers. Superior service quality enables a firm to differentiate itself from its competition,
gain a sustainable competitive advantage, and enhance efficiency .The benefits of service quality
include increased customer satisfaction, improved customer retention, positive word of mouth,
reduced staff turnover, decreased operating costs, enlarged market share, increased profitability,
and improved financial performance. The construct of service quality has therefore been a
subject of great interest to service marketing researchers.

Service quality has been defined by various experts in various ways as: 'Service Quality is the
difference between customers' expectations for service performance prior to the service
encounter and their perceptions of the service received.' According to Gefan Service quality is
the subjective comparison that customers make between the qualities of service that they want
to receive and what they actually get.' Parasuraman says, 'Service quality is determined by the
differences between customer's expectations of services provider's performance and their
evaluation of the services they received.

Service quality is 'the delivery of excellent or superior service relative to customer expectations.
Service quality is recognized as a multidimensional construct. While the number of dimensions

often varies from researcher to researcher, there is some consensus that service quality consists of
three primary aspects: outcome quality, interaction quality, and physical service environment
quality. Outcome quality refers to the customer's assessment of the core service which is the prime
motivating factor for obtaining the services (e.g. money received from ATM). Interaction quality
refers to the customer's assessment of the service delivery process, which is typically rendered via a
physical interface between the service provider, in person, or via

technical equipment, and the customer. It includes, for instance, the consumer's evaluation of the
attitude of the service providing staff. The physical service environment quality dimension
refers to the consumer's evaluation of any tangible aspect associated with the facilities or
equipment that the service is provided in/ with. It includes, for example, the physical conditions
of an ATM machine.

The most popular dimensions of service quality--features five dimensions: tangibles,

reliability, responsiveness, empathy, and assurance. The tangibles dimension corresponds
to the aforementioned physical environment aspect, the reliability dimension corresponds to
the service outcome aspect, and the remaining three represent aspects of interaction quality.
Both the costs and the revenue of firms are affected by repeat purchases, positive word-ofmouth recommendation, and customer feedback. Moreover, there is strong evidence that service
quality has either a direct influence on the behavioral intentions of customers and/or a n indirect
influence on such intentions, mediated through customer satisfaction.

RATER is an instrument that might be used to define and measure banking service quality and
to create useful quality-assessment tools.

The RATER may finally provide the following benefits to the HDFC bank:
1. It is the first approach to add and mix the customers religious beliefs and cultural values
with other quality dimensions.
2. It provides for multi- faced analysis of customer satisfaction.
3. It links quality with customers satisfaction and service encounter.
4. It provides information at several levels, already organized into meaningful groupings.
5. It is a proven approach, which results in usable answers to meet customers needs.
6. It is empirically grounded, systematic and well documented.

Banks managers can use the RATER model and its dimensions first to identify the following
issues:
To identify those areas where improvement should be made and resources can be allocated. For
instance, they need to know the level of quality in their banks and they can manipulate to make
bank-wide improvement in quality performance. Also they can use benchmarking to compare
their performance and other banks, which have already implemented quality program that will
help to prioritise the quality management efforts.

RESPONSIVENES

RELIABILITY

EMPATHY

ASSURANCE

TANGIBILIT

DIMENSIONS OF SERVICE QUALITY

TANGIBILITY: This dimension deal with modern looking equipments and visual appealing part of
banks.
RELIABILITY: This dimension has a direct positive effect on perceived service quality and
customer satisfaction in banking institutions. Banks must provide error free service and secure
online transactions to make customers feel comfortable.
RESPONSIVENESS: Customers expect that the banks must respond their inquiry promptly.
Responsiveness describes how often a bank voluntarily provides services that are important to
its customers. Researchers examining the responsiveness of banking services have highlighted
the importance of perceived service quality and customer satisfaction.
ASSURANCE: Customer expects that the bank must be secured and the behavior of the
employees must be encouraging.

EMPATHY: individual attention, customized service and convenient banking hours are very much
important in todays service.

In order to achieve better understanding of service quality in banking sector, the proposed five
service quality dimensions are conceptualized to illustrate the overall service quality of the
banking in relation to customers and providers perspective.

Banking was in the sector featuring medium goods and higher customer producer interactions,
since in banking, consumers and service providers interact personally and the use of goods is at
a medium level. Hence, in banking, where there are high customer-producer interactions, the
quality of service is determined to a large extent by the skills and attitudes of people producing
the service.

In the case of services, because customers are often either direct observers of the production
process or active participants, how the process is performed also has a strong influence on the
overall impression of the quality of service. A well-performed service encounter may even
overcome the negative impression caused by poor technical quality as well as generate positive
word-of-mouth, particularly if customers can see that employees have worked very hard to
satisfy them in the face of problems outside their control. Employees are part of the process,
which connects with the customer at the point of sale, and hence employees remain the key to
success at these service encounters or moments of truth. It is these encounters with customers

during a service that are the most important determinants of overall customer satisfaction, and a
customers experience with the service will be defined by the brief experience with the firms
personnel and the firms systems. The rudeness of the banks customer service representative,
the abruptness of the employee at the teller counter, or the lack of interest of the person at the
check deposit counter can alter ones overall attitude towards the service, perhaps even
reversing the impression caused by high technical quality.

Another important service quality factor, competence, is defined by whether the bank performs
the service right the first time, whether the employees of the bank tell customers exactly when
services will be performed, whether the bank lives up to its promises, whether customers feel
safe in their transactions with the bank and whether the employees show a sincere interest in
solving the customers problems. In short, this dimension is related to the banks ability to
perform the promised service accurately and dependably. Performing the service dependably
and accurately is the heart of service marketing excellence. When a company performs a service
carelessly, when it makes avoidable mistakes, and when it fails to deliver on promises made to
attract customers, it shakes customers confidence in its capabilities and undermines its chances
of earning a reputation for service excellence.

It is very important to do the service right the first time. In case a service problem does crop up,
by resolving the problem to the customers satisfaction, the company can significantly improve
customer retention. However, companies fare best when they prevent service problems

altogether and fare worst when service problems occur and the company either ignores them or
does not resolve them to the customers satisfaction.

Performing the service accurately is perhaps the most important factor in service quality
excellence. The cost of performing the service inaccurately includes not only the cost of redoing
the service but also the cost associated with negative word-of-mouth generated by displeased
customers. In case of services, the factory is the field. Again, services are intangible and hence
the criteria for flawless services are more subjective than the criteria for defect- free tangible
goods. Hence for most services, customers perceptions of whether the service has been
performed correctly, and not provider-established criteria, are the major determinants of
reliability.

The service quality factor tangible is defined by whether the physical facilities and materials
associated with the service are visually appealing at the bank. These are all factors that
customers notice before or upon entering the bank. Such visual factors help consumers form
their initial impressions. A crucial challenge in service marketing is that customers cannot see a
service but can see the various tangibles associated with it - all these tangibles, the service
facilities, equipment and communication materials are clues about the intangible service. If
unmanaged, these clues can send to the customers wrong messages about the service and render
ineffective the marketing strategy of the company. On the other hand, improving quality through
tangibles means attention to the smallest details that competitors might consider trivial. Yet,
these visible details can add up for customers and signal a message of caring and competence.

Customers may reveal new aspects of service quality in banking that are important to them,
and these would have to be incorporated in the scale so as to further explore the concept of
service quality in the banking arena.

RESEARCH OBJECTIVE
AND
RESEARCH METHODOLOGY

RESEARCH OBJECTIVE
The objective of the study is as follows:

To examine the essential dimensions of service quality i.e. RATER- Reliability,

assurance, tangibles, empathy and responsiveness of HDFC bank and its effect on customers
satisfaction.

To find out the level of perception of the customers from the service qua lity offered
by the banks.

To know which service quality dimension of the bank is performing well.

To identify which dimension of service quality needs improvement so that the quality of
service of HDFC banks is enhanced

IMPORTANCE AND SCOPE OF THE STUDY

The study would try to throw some insights into the existing services provided by the banks,
perceptions and the actual service quality of the bank. The results of the study would be able
to recognize the lacunae in the system and thus provide key areas where improvement is
required for better performance and success ratio. In the days of intense competition, superior
service is the only differentiator left before the banks to attract, retain and partner with the
customers. Superior service quality enables a firm to differentiate itself from its competition,
gain a sustainable competitive advantage, and enhance efficiency.

SCOPE OF STUDY
The scope of this research is to identify the service quality of HDFC bank. This research is based
on primary data and secondary data. This study only focuses on the dimensions of service quality
i.e. RATER. It aims to understand the skill of the company in the area of service quality that are
performing well and shows those areas which require improvement. The study was done taking
two branches of HDFC bank into consideration. The survey was restricted to the bank customers
in Delhi only.

RESEARCH METHODOLOGY
DATA SOURCE
Primary Data:
The primary data was collected by means of a survey. Questionnaires were prepared and
customers of the banks at two branches were approached to fill up the questionnaires. The
questionnaire contains 20 questions which reflect on the type and quality of services provided by
the banks to the customers. The response of the customer and the is recorded on a grade scale of
strongly disagree, disagree, uncertain, agree and strongly agree for each question. The filled up
information was later analyzed to obtain the required interpretation and the findings.
Secondary Data:
In order to have a proper understanding of the service quality of bank a depth study was done
from the various sources such as books, a lot of data is also collected from the official
websites of the banks and the articles from various search engines like Google, yahoo search
and answers.com.

RESEARCH DESIGN
The research design is exploratory till identification of service quality parameters. Later it
becomes descriptive when it comes to evaluating customer perception of service quality of
the banks.

Descriptive research, also known as statistical research, describes data and characteristics
about the population or phenomenon being studied. Descriptive research answers the
questions who, what, where, when and how.
Although the data description is factual, accurate and systematic, the research cannot describe
what caused a situation. Thus, descriptive research cannot be used to create a causal
relationship, where one variable affects another. In other words, descriptive research can be said
to have a low requirement for internal validity.
The description is used for frequencies, averages and other statistical calculations. Often the
best approach, prior to writing descriptive research, is to conduct a survey investigation.
Qualitative research often has the aim of description and researchers may follow-up with
examinations of why the observations exist and what the implications of the findings are.

RESEARCH SAMPLE
SAMPLING PLAN:
Since it is not possible to study whole universe, it becomes necessary to take sample from
the universe to know about its characteristics.

Sampling Units: Customers of HDFC bank

Sample Technique: Random Sampling.

Research Instrument: Structured Questionnaire.

Contact Method: Personal Interview.

SAMPLE SIZE:
The work is a case of HDFC Bank, one of the largest bank of Indian banking industry together
representing over 25 per cent of the market share of Indian banking space. The survey was
conducted in the city of Delhi with two branches of HDFC Bank, with 50 customers
as respondent.

DATA COLLECTION TOOL

Data was collected through a structured questionnaire. Likert scale technique is used. The format
of a typical five- level Likert item is:
1.

Strongly disagree

2.

Disagree

3.

Neither agree nor disagree

4.

Agree

5.

Strongly agree

Likert scaling is a bipolar scaling method, measuring either positive or negative response to a
statement. The questionnaire consists of two parts. The first part consists of three questions
concerning the demographic information of the respondent such as the name, age, educational
qualifications and income. The second part consisting of 18 questions exploring the respondent s
perception about the service quality of HDFC. For evaluation of service quality of HDFC bank

service quality dimension of reliability, assurance, tangibility, empathy and responsiveness is

used in order to evaluate the actual service quality of HDFC bank.

RESEARCH LIMITATIONS
The study is only for the HDFC Bank confined to a particular location and a very small
sample of respondents. Hence the findings cannot be treated as representative of the entire
banking industry.
The study can also not be generalized for public and private sector banks of the country.
Respondents may give biased answers for the required data. Some of the respondents did not
like to respond.
Respondents tried to escape some statements by simply answering neither agree nor
disagree to most of the statements. This was one of the most important limitation faced, as
it was difficult to analyse and come at a right conclusion.
In our study we have included 50 customers of bank because of time limit.

DATA ANALYSIS

Ques. Age

AGE CATEGORY

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

18-23 Years

10

20

20

24-29 Years

17

34

54

30-35 Years

15

30

84

16

100

50

100

35 Years and above

TOTAL

Age
18-23 Years

24-29 Years

16%

30-35 Years

20%

30%
34%

INTERPRETATION
From the table and graph above it can be seen that

20% respondents age are 18 to 23 years.

34% respondents age are 24 to 29 years.

35 Years and above

30% respondents age are 30 to 35 years.

16% respondents age are 35 to above years.

Ques. Educational qualifications

CATEGORY

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

UNDER GRADUATE

13

26

26

GRADUATE

20

40

66

POST GRADUATE

17

34

100

TOTAL

50

100

Educational qualifications
26%

34%

UNDER GRADUATE
GRADUATE
40%

INTERPRETATION
From the table and graph above it can be seen that

26% respondents are Under graduate.

POST
GRADUATE

40% respondents are Graduate.

34% respondents are Post graduate.

TANGIBILITY DIMENSION OF SERVICE QUALITY (Questions1 to 4):

Physical facilities, equipments and appearance of personnel

Ques.1 HDFC bank has modern looking equipment.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

STRONGLY DISAGREE

10

10

DISAGREE

25

50

60

UNCERTAIN

16

32

92

AGREE

100

TOTAL

50

100

HDFC bank has modern looking equipments

8% 10%
STRONGLY DISAGREE

32%

50%

DISAGREE
UNCERTAIN

AGREE

INTERPRETATION
HDFC bank has modern- looking and hi- tech equipments. Here analysis show that most of
the respondents disagreed with this statement. Among the total respondents 50% disagreed,
32% were neutral and 8% agreed. After analysis I found that majority of the respondents
think that HDFC Bank do not have modern looking equipments or no hi-tech equipments.

Ques.2 The bank's physical features are visually appealing.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE

UNCERTAIN

29

58

66

AGREE

17

34

100

TOTAL

50

100

Bank's physical features are visually appealing

30

29

25
20

17

15
10

5
0
DISAGREE

UNCERTAIN

AGREE

INTERPRETATION
HDFC banks physical facilities are visually appealing. From this statement I found that 17
persons agreed. 29 persons were uncertain and 4 persons disagreed. This means 58% people
were uncertain about this statement. Out of the total respondents only 4% disagreed and no one
strongly agreed or disagreed with the statement. 17% people agreed that HDFC banks
physical facilities are visually appealing.

Ques.3 The bank's reception desk employees are neat appearing.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE

10

10

UNCERTAIN

21

42

52

AGREE

18

36

88

12

100

50

100

STRONGLY AGREE
TOTAL

The bank's reception desk employees are neat appearing

STRONG
LY
AGREE

18

AGREE
UNCERTAI
N

21

DISAGRE
E

10

15

20

25

INTERPRETATION
HDFC banks employees appear neat. Here analysis shows that majority were neutral. Among the
total respondent 21 respondents were neutral, 18 people agreed and 6 respondents strongly
agreed. The rest disagreed. From analysis I found that some respondents agreed with this
statement but most of the respondents think the employees of the HDFC bank appear neat.

Ques.4 Materials associated with the service (such as pamphlets or statements) are visually
appealing at the bank.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE
UNCERTAIN

14

14

22

44

58

AGREE

18

36

94

100

50

100

STRONGLY AGREE
TOTAL

Materials associated with the services are visually

appealling at the
bank
50%

44%
14%

36%

0%

6%
DISAGREE
UNCERTAIN
AGREE
STRONGLY
AGREE

INTERPRETATION
Materials associated with the service are visually appealing at HDFC bank. Here 36%
respondents agreed with this statement and 6% strongly agreed with this statement. 44% were
neutral that is most and 14% disagreed. There was no respondent who strongly disagreed. Hence,
in general it can be concluded that materials associated with the services such as pamphlets or
statements are visually appealing.

RELIABILITY DIMENSION OF SERVICE QUALITY (Questions 5 to 8):

Ability to perform the promised service dependably and accurately

Ques.5 When the bank promises to do something by a certain time, it does so.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

STRONGLY DISAGREE
DISAGREE
UNCERTAIN
AGREE
STRONGLY AGREE
TOTAL

26

52

56

10

66

14

28

94

100

50

100

When bank promises to do something by certain time, it

does so

STRONGLY
AGREE

AGREE

14

UNCERTAIN

DISAGREE

26

STRONGLY
DISAGREE

2
0

10

15

20

25

30

INTERPRETATION
My sample size was 50. Here analysis shows that among the total respondents 26 respondents
disagreed and 14 respondents agreed with this question. Also I found that 5 people were neutral
and 2 people strongly disagreed. Hence I concluded that majority of them disagreed that the
bank when promises to do something by certain time, it does so.

Ques. 6 When you have a problem, the bank shows a sincere interest in solving it

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE

UNCERTAIN

14

28

34

AGREE

26

52

86

14

100

50

100

STRONGLY AGREE
TOTAL

When you have a problem, bank shows

sincere interest in
solving it
30
20
26
10
0

14

3
DISAGREE

UNCERTAIN

AGREE

STRONGL
Y
AGREE

INTERPRETATION
When you have a problem, HDFC bank shows sincere interest in solving it. After analysing this
statement I found that most of the respondents agreed i.e. 52% respondents agreed. Also I found
that 28% were neutral with this statement and 6% were committed with disagree. There was no
one who strongly disagreed. Hence HDFC bank can be said to be reliable.

Ques.7 The bank performs the service right the first time.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

STRONGLY DISAGREE

DISAGREE

16

20

UNCERTAIN

17

34

54

AGREE

17

34

88

12

100

50

100

STRONGLY AGREE
TOTAL

Bank performs the service right the first time

17

17

8
2
STRONGL
Y
DISAGRE
E

DISAGREE

UNCERTAIN

STRONGL
Y

AGREE

AGREE

INTERPRETATION
Total sample size was 50. Here analysis shows that among the total respondents 17 people
agreed with this statement. They think that HDFC bank performs the services right the first
time. 6 people strongly agreed with this statement. Also 17 people were neutral and the rest of
the respondents disagreed and strongly disagreed.

Ques.8 The bank insists on error free records.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE

10

10

UNCERTAIN

10

20

30

AGREE

23

46

76

STRONGLY AGREE

12

24

TOTAL

50

100

STRONGLY
AGREE
24%

100

DISAGREE
10%

UNCERTAIN
20%

AGRE
E
46%

Bank insist in error free records

INTERPRETATION
Bank insists on error free records. HDFC bank has proved from my analysis that it surely insist
on error free records as 46% respondents agreed with this statement and 24% strongly agreed.
Only 10% respondents disagreed and no one strongly disagreed.

RESPONSIVENESS DIMENSION OF SERVICE QUALITY (Question 9 to

12):
Willingness to help customers and provide prompt services

Ques. 9 Employees in the bank tell you exactly when the services will be performed.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

STRONGLY DISAGREE

12

12

DISAGREE

16

28

UNCERTAIN

13

26

54

AGREE

18

36

90

10

100

50

100

STRONGLY AGREE
TOTAL

Employees tell you exactly when the service will be

performed

STRONGLY
AGREE

AGREE

18

UNCERTAIN

13

DISAGREE
STRONGLY
DISAGREE

8
6

INTERPRETATION
Employees in the bank tell you exactly when the services will be performed. Majority of the
respondents agreed with this statement. 26% respondents were uncertain. At the same time 16%
disagreed and 12% Strongly disagreed with this statement.

Ques. 10 Employees in the bank give you prompt service.

Employees in the bank give you prompt services

30

27

20
10
0

16
5
DISAGRE
E
UNCERTAIN

SCALE
DISAGREE
UNCERTAIN

AGREE

FREQUENCY
5
16

PERCENTAGE
10
32

CUMULATIVE
PERCENTAGE
10
42

AGREE
STRONGLY AGREE
TOTAL

27
2
50

54
4
100

2
STRONGLY AGREE

96
100

INTERPRETATION
Most of the respondents agreed with this statement. According to my analysis, employees in
HDFC Bank give prompt service. Among the total respondents agreed respondents were 27
and strongly agreed were 2. 16 people were neutral and 5 disagreed. There was no respondent
who strongly disagreed with this statement.

Ques.11 Employees in the bank are always willing to help you.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

UNCERTAIN

12

24

24

AGREE

29

58

82

18

100

50

100

STRONGLY AGREE
TOTAL

Employees in bank are willing to help you

29

12
9

UNCERTAIN

AGREE

STRONGLY AGREE

INTERPRETATION
Employees in HDFC bank are willing to help you. With this statement no one disagreed or
strongly disagreed. Strongly agreed were 9 people i.e. 18% respondents strongly agreed,
29 people agreed i.e. 58% respondents agreed and 24% respondents were neutral.

Ques.12 Employees in the bank are never too busy to respond to your request.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE

UNCERTAIN

11

22

24

AGREE

27

54

78

STRONGLY AGREE

11

22

100

TOTAL

50

100

Employees at bank are never too busy to

respond to your
request

STRONGLY
AGREE

11

27

AGREE
11

UNCERTAIN
1

DISAGREE
0

10

15

20

25

30

INTERPRETATION
Employees in HDFC Bank ltd are never too busy to respond to your request. After analyzing this
statement I found that most of the respondents agreed with this statement. Among the total
respondents 22% strongly agreed and 54% agreed. 11 respondents were neutral and 1
respondent disagreed. No one strongly disagreed.

ASSURANCE DIMENSION OF SERVICE QUALITY (Question13 to 16):

Knowledge and courtesy of employees and their ability to inspire trust and confidence

Ques.13 The employees of the bank are trustworthy.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE

UNCERTAIN

13

26

34

AGREE

28

56

90

10

100

50

100

STRONGLY AGREE
TOTAL

Employees of the bank are

trustworthy

28
30
25
20

13

15
10

5
0
DISAGREE

UNCERTAIN

AGREESTRONGLY AGREE

INTERPRETATION
The employees of the bank are trustworthy. According to my findings, 54% respondents agreed
that employees at HDFC bank are trustworthy. 13% respondents were neutral and 4%
respondents disagreed with this statement.

Ques.14 The behavior of employees in the bank instills confidence in you.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE
UNCERTAIN
AGREE
STRONGLY AGREE

28

56

56

64

13

26

90

10

100

TOTAL

50

100

Behavior of employees in the bank instills confidence

in you

28

30
20

13

10

5
DISAGREE

UNCERTAIN

AGREE

STRONGLY AGREE

INTERPRETATION
The behavior of employees in HDFC bank instills confidence in you. Here analysis shows that
most of the people disagreed. Among the total respondents 28 respondents disagreed, 13 agreed
and 5 strongly agreed. There was no respondent who strongly disagreed. This means 56%
respondent disagreed with this statement.

Ques.15 You feel safe in your transactions with the bank.

SCALE

FREQUENCY

PERCENTAGE CUMULATIVE
PERCENTAGE

DISAGREE

10

10

UNCERTAIN

16

32

42

AGREE

23

46

88

12

100

50

100

STRONGLY AGREE
TOTAL

You feel safe in your transactions with the bank

DISAGREE UNCERTAIN

12%

AGREE

STRONGLY
AGREE

10%
32%

46%

INTERPRETATION
With this statement most of the respondents agreed. Among the total respondents 23 agreed with
this statement and 6 strongly agreed. 32% respondents were neutral and 10% respondents
disagreed. But there no one who strongly disagreed.

Ques.16 Employees in the bank have the knowledge to answer your questions.

SCALE

FREQUENCY PERCENTAGE CUMULATIVE

PERCENTAGE
DISAGREE

UNCERTAIN

18

22

AGREE

26

52

74

STRONGLY AGREE

13

26

100

TOTAL

50

100

Employees in the bank have knowledge

to answer your
questions

STRONGLY
AGREE

13

26

AGREE
9

UNCERTAIN
DISAGREE

INTERPRETATION
From my analysis I found that 54% respondents agreed that employees of HDFC bank
have complete knowledge to answer their questions. 26% respondents strongly agreed to
this statement and only 4% disagreed. 18% neither agreed nor disagreed.

EMPATHY DIMENSION OF SERVICE QUALITY (Question17 to 20):

Caring and individualized attention that firm provides to its customers

Ques.17 The bank gives you individual attention.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE

26

52

52

UNCERTAIN

12

24

76

AGREE

10

20

96

100

50

100

STRONGLY AGREE
TOTAL

Bank gives you individual attention

26

12
10
2
DISAGREE

UNCERTAIN

AGREE
STRONGLY AGREE

INTERPRETATION
HDFC bank is not able to give individual attention to its customers as out of the total
respondents 54% disagreed with this statement. 12% of the respondents were neutral and
only 12% agreed and 2% strongly agreed. From this finding it can be concluded that it is
unable to give individual attention to its customers.

Ques.18 The bank has operating hours convenient to all its customers.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE

UNCERTAIN

14

28

32

AGREE

27

54

86

14

100

50

100

STRONGLY AGREE
TOTAL

Bank has operating hours convenient to all its

customers
STRONGLY
AGREE

27

AGREE
14

UNCERTAIN
DISAGREE

10

15

20

25

30

INTERPRETATION
HDFC bank has operating hours convenient to all its customers. Out of 50 respondents, 27
respondents agreed with this statement and only 2 respondents disagreed. Also 7 respondents
strongly agreed that the bank has operating hours convenient to its customers.

Ques.19 The bank has your interests best at heart.

SCALE

FREQUENCY

PERCENTAGE CUMULATIVE
PERCENTAGE

STRONGLY DISAGREE

DISAGREE

10

16

UNCERTAIN

10

20

36

AGREE

25

50

86

14

100

50

100

STRONGLY AGREE
TOTAL

30
25
20
10

10
7

0
STRONGLY
DISAGREE

DISAGR
EE

UNCERTAIN

AGREE

Bank has your interests best at

heart

STRONGLY
AGREE

INTERPRETATION
HDFC bank has your best interests at heart. Here analysis shows that 25 respondents agreed
and 7 respondents strongly agreed with this statement. 20% were neutral and the rest disagreed
and strongly disagreed.

Ques.20 The employees of the bank understand your specific needs.

SCALE

FREQUENCY

PERCENTAGE

CUMULATIVE
PERCENTAGE

DISAGREE

10

10

UNCERTAIN

21

42

52

AGREE

20

40

92

100

50

100

STRONGLY AGREE
TOTAL

Employees of the bank understand your specific

needs

21

20

DISAGREE

UNCERTAIN

AGREE

STRONGLY AGREE

INTERPREATION
Employees of HDFC bank understand specific needs. With this statement most of the
respondents were neutral. Among the total respondents 20 respondents agreed and 4 respondents
strongly agreed. 5 respondents disagreed with this statement.

MEASURING SERVICE QUALITY DIMENSIONS

Measuring the quality of a service can be a very difficult exercise. Unlike product where
there are specific specifications such as length, depth, width, weight, colour etc. a service can
have numerous intangible or qualitative specifications.
Parasuraman, Zeithaml, and Berry (1985) provide a list of determinants of service quality: access,
communication, competence, courtesy, credibility, reliability, responsiveness, security,
understanding, and tangibles. A total of five consolidated dimensions of service quality are:

Tangibles (ques.1 to 4) - Physical facilities, equipments and appearance of personnel

Reliability (ques.5 to 8) - Ability to perform the promised service dependably and accurately
Responsiveness (ques.9 to 12) Willingness to help customers and provide prompt services
Assurance (ques.13 to 16) (including competence, courtesy, credibility and security)
Knowledge and courtesy of employees and their ability to inspire trust and confidence

Empathy (ques.17 to 20) (including access, communication and understanding the

customer) Caring and individualized attention that firm provides to its customer.
In order to calculate which dimension of service quality is performing well, a sample of the
questions are used in the questionnaire. Using the questionnaire, obtain the score for each of the
20 statements. After analysis of the data, Overall score to each statement is given on a scale of 1
to 5 i.e. 1 is given to strongly disagreed i.e. the lowest score, then 2= disagreed, 3= uncertain, 4=
agreed and 5= strongly agreed.
Sum the score for each dimension of service quality to obtain a final score which tells which

dimension is performing well and which dimension needs improvement.

The scores are shown in the following table:
Statement

Score

1. HDFC bank has modern looking equipment.

2. The banks physical features are visually appealing.

3. The banks reception desk employees are neat appearing.

4. Materials associated with the service (such as pamphlets or statements) are

visually appealing at the bank.

5. When the bank promises to do something by a certain time, it does so.

6. When you have a problem, the bank shows a sincere interest in solving it.

7. The bank performs the service right the first time.

3.5

8. The bank insists on error free records.

9. Employees in the bank tell you exactly when the services will be performed.

10. Employees in the bank give you prompt service.

11. Employees in the bank are always willing to help you.

12. Employees in the bank are never too busy to respond to your request.

13. The employees of the bank are trustworthy.

14. The behavior of employees in the bank instills confidence in you.

15. You feel safe in your transactions with the bank.

16. Employees in the bank have the knowledge to answer your questions.

17. The bank gives you individual attention.

18. The bank has operating hours convenient to all its customers.

Statement

Score

19. The bank has your best interests at heart.

20. The employees of the bank understand your specific needs.

The scores for each dimension are summed up and a final score is obtained:

SERVICE QUALITY DIMENSION

Points

1. TANGIBILITY (1 TO 4)

11

2. RELIABILITY (5 TO 8)

13.5

3. RESPONSIVENESS (9 TO 12)

16

4. ASSURANCE (13 TO 16)

14

5. EMPATHY (17 TO 20)

13

SERVICE QUALITY OF HDFC BANK

18
16

16

14
13.5

12
10

14

13

11

8
6
4
2
0
TANGIBILITY RELIABILITY

RESPONSIVENES
S
ASSURANCE

EMPATHY

FINDINGS OF THE REPORT

The Reliability dimension of service quality is better as compared to empathy and

tangibility. Still the score is low. For most services, customer s perceptions of whether the

service has been performed correctly, and not provider-established criteria, are the major
determinants of reliability. Customers of the bank hesitate to rely on the bank. Whenever they
have a problem, the bank shows sincere interest in solving it but the services are not performed
by a certain time as promised. The employees should take this proble m seriously and take
steps to remove this.

As score for Assurance is at second place after responsiveness, so the customers of

HDFC bank are very confident and feel safe while transacting with the bank. Moreover the
employees of the bank have proved to be trustworthy. Employees are also educated enough
to answer all the questions.

The score of Tangibility dimension of service quality of HDFC bank is the lowest. The
service quality factor tangible is defined by whether the physical facilities and materials
associated with the service are visually appealing at the bank. These are all factors that
customers notice before or upon entering the bank. Customer expectations regarding visual
appealing of HDFC is very high. From my study I found that Physical facilities and modern
looking equipment are not sufficient in HDFC bank. Respondents were uncertain about the neat
appearance of the reception desk employees. So they should work on that and try to fulfill the
gap.

According to my findings, the score of Empathy is not satisfactory but not unsatisfactory
also. HDFC bank is unable to give individual attention to its customers and is unable to

understand specific needs of its customers. But still bank has taken steps to satisfy its customers by
keeping operating hours convenient to its customers and keeping their interest best at heart.

In HDFC bank, the score of Responsiveness is highest so they are focusing on prompt
service, employees are willing to help the customers and say the exact time when the services
will be performed. Employees at bank give their customers first preference and are always ready
to help them. Overall HDFC banks responsiveness dimension of service quality is the highest.

According to the customer perception, HDFC bank is highly responsive. Customers are
assured while transacting with the bank. The reliability dimension is lower than the first to
dimension. They feel that the bank is unable to give them individual attention and its equipments
are not modern and sufficient for the bank.

There is not much gap between all the dimensions, this shows that HDFC BANK is a better
service provider in all the dimensions i.e. reliability, assurance, tangibility, responsiveness

and empathy. As a result of which, the customers are satisfied with the service offered by HDFC
bank.

CONCLUSION
Based on the study conducted it can be concluded that responsiveness, assurance and reliability are
the critical dimensions of service quality of HDFC bank and they are directly related to overall
service quality. The factors that may delight customers tend to be concerned more with the
intangible nature of the service, commitment, attentiveness, friendliness, care, and courtesy.

The employees give prompt services, always are ready to answer the questions and are
trustworthy. The main sources of dissatisfaction appear to be cleanliness, up to date technology
modern equipments, and neatly dressed up employees. The Tangibility dimension of service
quality of HDFC bank is highly disappointing and serious steps are needed to be taken to
enhance this dimension. Customers of the bank are dissatisfied with the empathy dimension. To
satisfy these customers, the management can take some attempts, noted earlier as
recommendations.
The study brings about the areas which require urgent attention of the employees, the
management, and the policy makers of the industry. These are areas in which customers are
hugely dissatisfied with the services of the banks against their expectation. This high degree
of dissatisfaction resulting from the services received clearly questions the design of services
or subsequent response of the bank employees. These limitations are too serious to be avoided
as these question the front- line people dealing with the customers and the approach of the
management in taking customers seriously.
The management should understand the benefits of service quality. It include increased customer
satisfaction, improved customer retention, positive word of mo uth, reduced staff turnover,
decreased operating costs, enlarged market share, increased profitability, and improved financial

performance. In the days of intense competition, superior service is the only differentiator left
before the banks to attract, retain and partner with the customers. Superior service quality
enables a firm to differentiate itself from its competition, gain a sustainable competitive
advantage, and enhance efficiency. Thus, improving service quality leads to the customer
satisfaction and, ultimately, to customer loyalty.

RECOMMENDATIONS

Reliability is an obvious place to start. Customers of the bank want to know their resources
are safe and within trustworthy institutions. A way to ensure this peace of mind would

be to take steps to ensure bank employees are well trained, so each bank associate is able to
offer complete and comprehensive information at all times. Consistent policies combined with a
knowledgeable staff will foster a high degree of institutional cohesion and reliability.

Responsiveness, again when associated with a well-trained staff and timely answers to
service-related questions, would make significant inroads into causing HDFC bank be regarded
as responsive. Staff should be encouraged to present relevant options to banking customers in
a manner that does not resemble salesmanship so much as a desire to serve.

Intangibles please customers just as much as tangibles in the banking industry. People
tend to visit the same branch of a bank over and over again. Usually, this is a location close to

their home or their workplace. It is natural that customers become comfortable and habituated
to these branch banks, for the same reason they develop familia rity with a neighborhood
supermarket or convenience store. It makes sense that bank employees would be encouraged to
learn to recognize these regular customers, learn their names, and begin to identify their basic
service requirements.

Learning to understand customers needs will allow bank associates to offer enhanced

services, perhaps lowering customers banking costs and increasing their investment potential.
This could also open up the possibility of increased profits for banks, for when perceived as
more service and customer oriented, they will, in effect, become a useful
and pleasant way to shop.

Keeping the bank with up-to-date technologically are important factors. Modern

equipments, new improved technology should be replaced with the old ones. If the staff inside
is pleasant and well- informed, in an aesthetically pleasing environment, then customer
satisfaction will be high.

The five-dimensional structure could possibly serve as a meaningful framework for

tracking a banks service quality performance over time and comparing it against the
performance of competitors. Items on some dimensions should be expanded if that is
necessary for reliability.

Thus, the banking industries must continuously measure and improve these dimensions in
order to gain customers loyalty.

BIBLIOGRAPHY
References
th

Kotler Philip, marketing management, (Pearson education, 12 edition)

Malhotra K. Naresh, marketing research (An applied orientation), Research design,
th

(Prentice hall of India pvt. 5 edition)

Zeithmal V. A., Grembler D.D., Bitner M.j., and Pandit A.: Service Marketing Integrated
customer Focus across the Firm (4th Edition)
M.K. Rampal : Service Marketing
Websites
www.google.com
www.hdfcbank.com
www.hdfcindia.com
www.wikipedia.org
www.marketresearch.com

ANNEXURE
QUESTIONNAIRE
Respected Sir/Madam
I am a student of SIKKIM MANIPAL UNIVERSITY, conducting a survey on
QUALITY ISSUES RELATED TO ENHANCING CUSTOMER SATISFACTION (BOTH
INTERNAL AND EXTERNAL) TO ENSURE LONG-TERM CUSTOMER LOYALTY . The

following statements relate to your feelings about the HDFC bank. Please show the extent to
which you believe HDFC bank has the feature described in the statement. I request you to the
option which in your opinion are believed to be true. All data will be kept confidential.
Name:
Age:
Educational Qualifications:
Strongly Disagree Disagree Neither agree Agree Strongly Agree
Nor disagree

1. HDFC bank has modern looking equipment.

2. The bank's physical features are visually appealing.
3. The bank's reception desk employees are neat
appearing.
4. Materials associated with the service (such as
pamphlets or statements) are visually appealing at
the bank.
5. When the bank promises to do something by a certain
time, it does so.
6. When you have a problem, the bank shows a sincere
interest in solving it.

Strongly Disagree Disagree Neither agree Agree Strongly Agree

Nor disagree

7. The bank performs the service right the first time.

8. The bank insists on error free records.
9. Employees in the bank tell you exactly when the
services will be performed.
10. Employees in the bank give you prompt service.
11. Employees in the bank are always willing to help
you.
12. Employees in the bank are never too busy to respond
to your request.
13. The employees of the bank are trustworthy.
14. The behavior of employees in the bank instills
confidence in you.
15. You feel safe in your transactions with the bank.
16. Employees in the bank have the knowledge to answer
your questions.
17. The bank gives you individual attention.
18. The bank has operating hours convenient to all its
customers.
19. The bank has your best interests at heart.
20. The employees of the bank understand your
specific needs.