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A Study on Customers Preference and Satisfaction of Four Basic Banking Services in Coimbatore and Erode

T Vetrivel* and T Devasenathipathi**


The purpose of this study is to investigate the differing preference and satisfaction level of customers towards Loans, Deposit schemes, Insurance and Value-added services rendered by various banks in Coimbatore and Erode cities. By using non-probability convenient sampling, 300 samples were taken at various branches and ATM centers, etc. Simple percentage and chi-square test results revealed that Business and Vehicle Loans are fast moving and customers had overall satisfaction. Bank loans, bank deposit schemes showed a positive response and in value-added services, customer preference for Net banking got the least rank. Among four basic services, Insurance services have been paid limited attention and the study recommends special attention on banking insuranceservice satisfaction and the implications were recorded for future researchers.

Introduction
After Liberalization, Privatization and Globalization (LPG) policy enactment, Indian banking industry has undergone tremendous qualitative changes. To face macro changes, many of the banks have framed strategies to survive by concentrating on rapidly changing markets, new technology, solving trade union issues, foreign banks entry, bank regulations, economic meltdown, fierce competition and have also understood the realities of long-term survival which depends on the

satisfaction of customers expectations. Still many of the banks are facing challenges to understand the mindset of their clients due to often changing preferences and expectations of the customers. The banks also rarely evaluate customer expectations. But well-known MNC companies continuously evaluate the consumers mindset with the help of Marketing consultants, educational institutions and then concentrate on fulfilling their requirements. As V Krishnamurthy (Staff reporter, The Hindu) of Banking

About the Authors


1

Professor, Department of Management Studies, Velalar College of Engineering & Technology, Thindal, Erode 638012, Tamil Nadu, India. E-mail: vetri_phd@yahoo.com Senior Lecturer, Department of Management Studies, PPG Business School, Saravanampatti, Coimbatore, Tamil Nadu, India. E-mail: vijayangudevasena@gmail.com 81

A Study IUP. All Rights Preference and Satisfaction 2010 on Customers Reserved. of Four Basic Banking Services in Coimbatore and Erode

Ombudsman for Kerala and Lakshadweep Islands, said Indian banking industries biggest challenge is not from its trade unions and foreign banks, but meetin the rising hopes of the customers. Nowadays most of the winning companies are focusing on continuously fulfilling their clientele expectations or beyond, like customer delight. The most popular view of customer satisfaction by academia is that customer satisfaction is the judgment borne out of the comparison of prepurchase expectations with post-purchase evaluation of the product or service experience (Oliver, 1997). Customer satisfaction is a post-purchase judgment or evaluation done by customers by comparing their pre-purchase expectations. If it results in positive values, then one can assume that customers get satisfied and then it is easy for bankers to retain or delight them for longer periods, consequently bringing in profitability.

Objectives of the Study


To know the over-all satisfaction and dissatisfaction levels of bank customers with respect to fourdimensional banking servicesLoan services, deposit scheme services, insurance services and value-added services. To know the customers opinions and preferences about various supporting factors of fourdimensional banking services.

Research Methodology
In this study, descriptive research technique was adopted. Main objective of the survey is to know the consumers satisfaction and dissatisfaction level about banking services with respect to loans, deposits schemes, insurances services and value-added services. Samples of 300 customers of two major cities (Coimbatore and Erode) were selected. Non-probability convenient sampling technique was used to collect primary data keeping in view the subject matter of research, easy accessibility and convenience of the researcher. The study period was 9 months (August 2009-April 2010). Sample units i.e., customers were met at branches of different banks, ATM centers in Coimbatore and Erode . Female customers accounted for 13% while male customers accounted for the rest 87% of the samples. Collected data were categorized, tabulated and interpreted on the basis of four-dimensional banking services. To check the demographic factors (gender, income and marital status) influence on kind of bank loans and changes expected, chi-square test was used to analyze the

Need for the Study


In the current trend, customer satisfaction plays a major role in all parts of the services. This research work is used to predict the over-all customer satisfaction and dissatisfaction with banking services with the help of four-dimensional services such as loan services, bank deposits, insurance services and value-added services and how gender and income influence the kind of loans offered by banks. An assessment was made to understand the relationship between marital status and changes recommended to commonly accepted services. This study helps to identify the customers preferences and satisfaction of banking services.
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Table 1: Demographic Profile


S. No. 1. 2. Gender Age Characteristics Male Female Below 25 26-35 36-45 Above 46 3. 4. Marital Status Occupation Single Married Business Employees Professionals Others 5. Education Up to HSC UG PG Professional 6. Annual Income Below 1 lakh 1-3 lakh Above 3 lakh Numbers 261 39 61 71 144 24 78 222 84 168 26 22 76 136 62 26 231 52 17 Percentage 87.00 13.00 20.33 23.67 48.00 8.00 26.00 74.00 28.00 56.00 8.67 7.33 25.33 45.33 20.67 8.67 77.00 17.33 5.67

data. The interpretation recorded was as follows.

Data Analysis and Interpretation Demographic Profile


It is very important to categorize the respondents demographic profile because it gives a broad picture and helps bankers to analyze the demographic factors which influence and are associated with the satisfaction levels. In the gender response rate of the survey, male participants were 6.69 times more than female participants, as it is indicated 261 (87%) responses from males and only 39 (13%) from females. 222(74%) of the respondents were married

and the remaining 78 (26%) of the respondents single. Age is an important influencing factor in operating bank transactions, similarly the factors viz., education, occupation to some extent, decides the usage of banks services. From the study, it was seen that majority (48%) of the respondents were from the middleage categor y (36-45), followed by 71 (23.67%) of the respondents in the age group of 26-35, 20.33% of the respondents were under the age group of below 25 and 8% of the respondents in the age group above 46. Occupation is a predominant factor that reveals the consumers social class, life style and willingness to buy and ability
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A Study on Customers Preference and Satisfaction of Four Basic Banking Services in Coimbatore and Erode

to buy because occupation provides the income which influences the purchases and services. Among the 300 respondents, 56% of respondents currently work as private or government employees, followed by 84 (28%) of the respondents doing business, 8.66% of the respondents were professionals like lawyers and engineers, etc., and remaining 7.33% of them were farmers, daily laborers, contract workers, etc. We know that occupation and income are interrelated, i.e., consumers who earn less may take into account the price or next time services or consumers who earn more, may not bother about the high-priced services. From Table 1, it is observed that 77% of the respondents belong to the income level of below Rs. 1 lakh, 17.33% of the respondents come under the income level of Rs. 1-3 lakh and remaining 5.66% of the respondents are earning above Rs. 3 lakh. It is inferred from Table 1, that 45.33% of the respondents are graduates, 25.33% of the respondents have studied up to HSC, 20.66% of the respondents

were postgraduates and remaining 8.66% of the respondents are professionals like engineers and lawyers, etc.

Customers Banks Details


Table 2 reveals the details about the customers (respondents) having accounts in specific banks and the number of years of having transactions with those banks. It is highlighted that 30.33% of the respondents have their account in State Bank of India (SBI), 14.33% of the respondents in Indian Bank, 14% of the respondents are AXIS Bank account holders, 13.66% of the respondents belong to ICICI Bank , 13.33% of the respondents have their bank accounts in Canara Bank, 8.60% of the respondents are dealing with HDFC bank, and remaining 5.60% of the respondents are having account with other banks like Central Bank, Tamil Nadu Mercantile Bank and Corporation Bank, etc. One of the most important success factors of any bank in the competitive environment is retaining customers on a

Table 2: Customers Bank Details and Number of Years of Experience


S. No. 1. Characteristics Customers account holding bank details Name of the Bank HDFC ICICI AXIS State Bank of India Canara Bank Indian Bank Others 2. No. of years experience with respective account holding bank Above 12 Years 10-12 Years 7-9 Years 4-6 Years 1-3 Years
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Numbers 26 41 42 91 40 43 17 18 15 73 141 53

Percentage 8.60 13.66 14.00 30.33 13.33 14.33 5.60 6.00 5.00 24.33 47.00 17.67

The IUP Journal of Marketing Management, Vol. IX, No. 4, 2010

long-term basis. From Table 2, it is inferred that 47% of the respondents have 4-6 years experience with the same bank, followed by 7-9 years of bank transaction experiences as assigned by 73 (24.33%) of the respondents, 17.67% of the respondents had 1-3 years of experience while a very minimal (6% and 5%) of the respondents opined that they had above 12 years and 10-12 years banking transaction experience with their respective banks.

Customers Preferences and Satisfaction of Bank Loans


Table 3 shows the customers preferences and their satisfaction with respect to bank loans availability. It is measured through customers opinion about interest rates, loan processing time, reason for preferring particular banks services and overall satisfaction. Out of 300 respondents, 172 (57.33%) of the respondents had availed different kinds of bank loans and 26.74% of the respondents were having business loans, followed by 26.16% having vehicle loans which was 1.44% higher than the computed response of the housing and personal loan (63 responses) as it is indicat ed by 18 .02 % and 18 .6 1% respectively. A mea ger number of respondents had availed agricultural loans (8.14%), followed by jewel loans 2.33%. Questions were posed to get opinion about interest rates on availed ban k loans, in that majority of the respondents (3 5. 47%) opin ed t ha t interest rates on bank loans are acceptable, ver y low an d l ow in terest ra te was responded by 8.72% and 16.86% of the respondents respectively while it is compared with calculated response of the very high (16.86%) and high (22.09%) on ly 38. 95% of the peopl e are

dissatisfied with interest collected. It indicates that there were chances that customers had no clear idea about interest rates while availing bank loans, getting late awareness about exact interest, late payment fine or charges, etc. When opinion was asked about processing time of loan, 59% of the respondents opined that Bankers time taken to process the loan requested is rea son abl e a nd acceptable, followed by 21.51% of them who opined that loan processing time is ver y quick. 20.53% of the response supports loan processing time as quick. Only few of the customers indicated loan processing time as very slow (6.39%) and slow (16.86%). This indicates that 132 customers a re sat isfie d w ith Loan processing time against 40 customers who were dissatisfied. Customers pleasure highly depends on many factors of the quality and quantitative services of the banks while our empirical survey results are more supportive of only three factors, i.e., 46. 51% of the respon dents are attracted by initial interest rates offered by banks, 35.47% of them preferred particular banking services due to good services assistance provided by banking em ployee s a nd onl y f ew (18 .02 %) respondents preferred the bank due to facilities like easy accessibility, online banking, etc. Finally when 172 bank loan customers were asked for the over all sa tisfaction, majority of them were satisfied with the current bank services (43.02%), followed by 31.98% of the people who were dissatisfied due to tardy services, penalties, fears of threatening, interest rate confusion, hidden charges and 18.02% of the respondents were highly disturbed and con fuse d with in tere st rate charge s, hidden cost,
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A Study on Customers Preference and Satisfaction of Four Basic Banking Services in Coimbatore and Erode

Table 3: Customers Preferences and Satisfaction of Bank Loan Availed


S. No. 1. 2. Characteristics Availed bank loan Kinds of loan Yes No Housing loan Personal loan Vehicle loan Business loan Jewel loan Agricultural loan 3. Opinion about interest rates on loan availed Very low Low Moderate High Very high 4. Loan processing time Very slow Slow Moderate Quick Very quick 5. Reason for preferred particular bank for availing loans Opinion about over all satisfaction level of bank loan service Facilities Initial interest rate Good service of bankers Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied Numbers 172 128 31 32 45 46 4 14 15 29 61 38 29 11 29 59 36 37 31 80 61 12 74 0 55 31 Percentage 57.33 42.67 18.02 18.61 26.16 26.74 2.33 8.14 8.72 16.86 35.47 22.09 16.86 6.39 16.86 34.30 20.93 21.51 18.02 46.51 35.47 6.98 43.02 0 31.98 18.02

6.

unknown deduction, etc., consequently fostering a high level of dissatisfaction. Hence, the bankers should treat customer issues in a solvable manner, then only any bank can retain the customer for a long term else t here may be chances of consumer sw itchovers and loss of profitable customers.
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Gender Influence on Bank Loan Availed


H0: There is no relationship between gender of the respondents and loans borrowed by the respondents.

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H1: There is a close relationship between gender of the respondents and loans borrowed by the respondents. It is learned from Table 4 that the calculated chi-square value is greater than tabulated value and the result is significant at 5% level. Hence, H0 is rejected. There is a significant influence on gender (male and female) on bank loans availed. From

the analysis, it is inferred that there is a close relationship between Gender and Bank loans, availed.

Preferences and Satisfaction on Bank Deposit Schemes of Customer


Table 5 represents that, out of 300 respondents, 52.67% of them are not dealing with any type of deposit schemes. Out of 142 responses, 93 respondents

Table 4: Gender Influence on Bank Loan Availed


Loans/ Gender Male Female Total Housing Loan 27 4 31 Personal Loan 27 4 31 Business Loan 31 15 46 Agriculture Loan 13 1 14 Vehicle Loan 37 8 45 Jewel Loan 1 3 4 Total 136 35 171

Note: Chi-Square Value: 39.36; Degrees of Freedom: 5; Level Significance: 5%; Table Value: 11.070.

Table 5: Customer Preferences and Satisfaction on Bank Deposit Schemes


S. No. 1. 2. Dealing with deposits Kinds of deposits Characteristics Yes No Fixed deposit Demand deposit Recurring deposit Tax saver deposit Others 3. Reasons for preferring deposit schemes Service Interest rates Schemes Safety Others 4. Opinion about interest rates on deposits Overall satisfaction Low Moderate High Yes No
A Study on Customers Preference and Satisfaction of Four Basic Banking Services in Coimbatore and Erode

Numbers 142 158 67 26 13 07 29 31 52 8 38 13 89 47 6 87 55

Percentage 47.33 52.67 47.18 18.31 9.16 4.93 20.42 21.83 36.61 5.63 26.76 9.15 62.67 33.09 4.22 61.26 38.73
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5.

had fixed deposits (47.18%) and demand deposit s (18.31%). 2 0. 42 % of t he respondents invested in other deposit schem es lik e other forms of te rm deposits, current accounts, deposits with in surance. R est of the respondents (4.92%) invested in Tax saver deposits. However, choosing a particular bank and it s service schem es depends on t he psychological factors like preferences, perception about schem es off ere d, influence of media, relatives, colleagues as well as mindset of the people. Our research work estimates that the interest rates offered by banks (36.61%), safety (26.76) and services of the banks (2 1 . 8 3 %) w ere m a jor cus t om e r pref eren ce f a ct ors for choo sin g particular deposit schemes. Specific attention is paid to know about opinion

Relationship Between Income Level of the Respondents and Investment in Deposits


H0: There is no relationship between Income level of respondents and deposits of the respondents. H1: There is a close relationship between Income level of the respondents and deposits of the respondents. It is divulged from the Table 6 that the calculated chi-square value is greater than the tabulated value and the result is significant at 5% level. Hence, the hypothesis H0 is rejected and the alternative hypothesis H 1 is selected. From the analysis, it is concluded that there is a close relationship between respondents income level and their investment in the form of deposits.

Table 6: Individuals Income Influence on Deposit Schemes


Deposits Income Level Below 1 lakh 1 Lakh-3 lakh Above 3 lakh Total Fixed Deposits 17 39 11 67 Demand Deposits 9 11 6 26 Recurring Tax Saver Deposits Deposits 8 4 1 13 0 2 5 7 Others 4 17 8 29 Total 38 73 31 142

Note: Chi-Square Value: 23.89; Degrees of Freedom: 8; Level Significance: 5%; Table Value: 15.507.

on in t erest r a t es on deposit s a n d 62.67% of the customers opined that it was very low, nevertheless 33.09% of the respondents opinions were favorable t o ba n k in t er est ra t e s. Ul t im a t e l y 61.26% of the bank customers were satisfied and over all satisfaction on ba n k deposi t s schem es re su l t e d positively (refer Table 5).
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Customers Satisfaction Towards Insurance Services in Banks


It is inferred from Table 7, that of the 300 respondents, 66% of the respondents did not have any dealing with insurance services in Banks. Rest of the 34% had insurances offered through account holding banks. Out of 102 insurance holders, majority of the customers (69.6%) opined

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Table 7: Customers Satisfaction Towards Insurance Services in Banks


S. No. 1. 2. Characteristics Dealing with insurance services Overall satisfaction of insurance services Yes No Very good Good Moderate Poor Very poor Numbers 102 198 3 7 71 9 12 Percentage 34.00 66.00 2.94 6.86 69.60 8.82 11.76

that the bank offered insurance services were reasonable whereas only meager responses were recorded for high level of satisfaction and dissatisfaction.

Customer Expectations of Banking Services


The Researchers were interested to analyze how respondents supported changes required in loans services, deposits services, value-added services, insurances services and other services in the future. An attempt was also made to study the marital status influences on changes recommended in five commonly accepted banking services. Table 8 depicts that most of the married respondents (222) instructed the required changes in offered banking services and it is 35.14% higher response than the single category respondents (78/222 = 35.14%). A total of 135 respondents (45%) out of

300 respondents opined that the loan schemes offered by the bank should undergo changes like unfluctuating interest rates, immediate intimation in case of delayed payments, customer accepted insurances on loans, no hidden charges, quick processing, maintaining customer relationship that fosters customer loyalty, avoid changes in interest rates, etc. This was followed by 95 customers (31.67%) admitting about the immediate changes in bank deposit schemes and also 44 people (14.67%) advised there should be immediate changes in value-added services by reducing service charges or more free services, more training than the instruction on how to use net banking, queueless ATMs, easy accessibility of ATMs, reducing unnecessary repairs in ATMs, reducing unnecessary promotions in mobile banking, etc.

Table 8: Relationship Between Marital Status and Changes in Banking Service


Preference in Future Marital Status Single Married Total Loans 28 107 135 Deposits 22 73 95 Value Added Service 14 30 44 Insurance 11 11 22 Others 3 1 4 Total 78 222 300

Note: Chi-Square Value: 19.393; Degrees of Freedom: 4; Level Significance: 5%; Table Value: 9.488. A Study on Customers Preference and Satisfaction of Four Basic Banking Services in Coimbatore and Erode 89

H0: There is no relationship between marital status of the respondents and immediate changes required in banking services. It is divulged from Table 8 that the calculated chi-square value is greater than the tabulated value and the result is significant at 5% level. Hence, the hypothesis H 0 is rejected and the alternative hypothesis H1 is selected from the analysis. Hence, it is concluded that there is a close relationship between marital status of the respondents and immediate changes required in the banking services.

Customers Preferences and Satisfaction Level of ValueAdded Services


More banks are offering similar value-added services such as mobile banking (customer convenience), SMS banking (account balance, last few transactions, chequebook requests and updated interest rate changes). For examples, ICICI bank uses immobile (mobile banking platform) for paying utility bills, insurance premiums, account transactions to other banks. SBI mobile banking moves are similar to that of ICICI Bank and it allows its customers to pay telephone bills, fund transfer, utility bills, recharge of mobile SIM cards, etc., nevertheless the commonly used value-

added services are: ATM (236 users), locker facilities (35 users), mobile banking (63 users), net- banking (41 users) and telebanking, online fund transfers, 247 customer care, etc., are categorized as others (only 80 users) and successful reach of these services are highly influenced by factors like customer needs, wants, expectations, preferences, knowledge about usage of value-added services as well as length of value-added services offered by bankers. Respondents were asked to rank the level of satisfaction of the five commonly known and used value-added services (refer Table 9). ATM was ranked first, rank two was assigned to other value-added services like tele-banking, 24 x 7 customer care, SWIFT operations, NRI accounts, e-ticketing, e-taxing, credit cards, debit cards, etc. Table 9 shows that Rank 3 goes to mobile banking as it indicates increase in usage of mobiles day by day for the various purposes while chances of usage of Net banking was low, due to confusion, poor internet literacy, fear of online theft, no training on this aspect etc hence it was given the last rank.

Findings and Suggestions


Demographic Finding: Male respondents are 14.9% higher than the female respondents (39/262 100 = 14.9%), 74%

Table 9: Preferences and Satisfaction Level of Value-Added Services


Value Added Service Weight (W) ATM Locker facilities Mobile banking Net banking Others
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Good 5 136 21 27 9 21

Moderate 4 63 14 32 29 56

Poor 3 37 1 4 3 3

Total Weight (WX) 571 92 161 88 209

Average (WX/W) 95.16 15.33 26.83 14.66 34.83

Rank

1 4 3 5 2

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of the respondents were married, 48% of the respondents age was between 36-45. 56% of the respondent were working in private or government departments and majority of the respondents (77%) income was below one lakh per annum. Very few respondents had professional qualifications like engineering, law, etc. (refer Table 1). Hence, it is good to concentrate on female segment by offering different benefits. Experience and Account Holding Bank Details: It is found from the study that 47.33% of the customers had atleast 4-6 years of experience while customers with 10-12 years experience were only 5%. SBI is first as 30.33% of the respondents were customers of SBI and the least rank (5.60%) goes to other banks like Central Bank, Tamil Nadu Mercantile Bank and Corporation Bank, etc. Customer Preferences and Satisfaction of Bank Loan Services: Among 172 respondents, business loan (26.74%) and vehicle loan (26.16%) were the most preferred loans and a ver y meager percentage of the respondents said that they availed jewel loan. 132 customers were satisfied with the loan processing time against 40 customers who were dissatisfied. When asked to rank over all satisfaction, out of the 172 bank loan customers, 50% of the customers were satisfied and the remaining 50% dissatisfied due to poor services, penalties for late payment, fear of threats, interest rate confusion, hidden costs, unknown deductions, etc. Hence the bankers should treat these customer issues in a solvable manner, then only they can retain customers. Preferences and Satisfaction of Deposit Schemes: Out of 142 respondents, only

93 respondents had fixed deposits which is a meager 4.92% of the respondents who invested in tax saver deposits. It is found from the study that the interest rates offered by banks (36.61%), safety (26.76%) and services of the banks (21.83%) are major customer preference factors for choosing particular deposit schemes. Overall satisfaction on bank deposit schemes resulted positively and respondents satisfaction is higher than the dissatisfied customers and this point was well supported by low (62.67%) and moderate (33.09%) opinion about interest rates on deposit schemes but the number of non-investors in deposits is high (158) due to low interest rates which made them move to other investment avenues like securities, chit funds and other financial institutions giving more returns against investment. Current financial investment scenarios face serious challenges like global meltdown, fear of share market, more risk and insecurities in financial sector. These fear factors alert each and every person to go for safer, secured, less-risky investments. At this moment, if banks do customer drives and awareness advertisements, promotional schemes about its deposit schemes, it can result in 20-30% increase in deposit schemes. Satisfaction and Dissatisfaction of Insurance Services: It is found that still majority of the respondents (66%) are nonusers of insurance services. 34% of customers were tested for overall satisfaction and dissatisfaction on the basis of five important parameters (very good, good, moderate, poor and very poor). Very good and good responses were 2.94% and 6.86%, satisfactory was 9.8% and very poor and poor responses were 8.82% and
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A Study on Customers Preference and Satisfaction of Four Basic Banking Services in Coimbatore and Erode

11.76% which indicated a dissatisfactory range of 20.58. This implied that customer expectation and actual services rendered by banks were not matching. To fill this service gap, bank should take corrective action wherever required and should do internal service auditing to improve insurance services or it should get feedback about service personnels maintaining pre-purchase assurances during post-purchase services and also banks should ensure 100% quality assurance in prompt reply on complaints, billing systems, etc. Similarly banks should take necessary steps to convert non-users of insurance services into users by offering customer expected services, customer satisfaction drives, create importance of insurance. Furthermore, in our study limited attention has been paid on these services, hence a separate further exploratory research is required by future researchers. Customers Preferences and Satisfaction Level of Value-Added Service: In valueadded servicesATM (236 users) was given Rank 1 and last rank was given to Net banking (41 users). Married customers expectation is higher than single respondents. 45% of the customers expect changes in standard interest rates, immediate intimation in case of delayed payment, customer accepted insurances on loans, no hidden charges, quick processing, tendency of maintaining customer relationship that fosters customer loyalty, 95 customers (31.67%) admitted about the immediate changes in bank deposit schemes whereas 44 people
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(14.67%) advised that the immediate changes required in value-added services was reducing service charges or increase free services, more training than instruction on how to use net banking, queueless ATMs, easy accessibility of ATMs, reducing unnecessary repairs in ATMs, reducing unnecessary promotions through mobile banking, etc.

Conclusion
The study is aimed at measuring the consumers preference and satisfaction levels for four basic services offered by private and public banks in Coimbatore and Erode. 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 banking insurance services still need to be given at ten tion by f ocussing on customer issues. New innovative schemes, st rat egies to ca ter to non- use rs of insurance services have to be adopted. A study or future research is recommended on all verticals of banking insurance services. In value-added services customer preference for Net banking was least ranked and if the bankers wish to increase net banking traffic, bankers should take ma xim um eff ort s to educat e t he consumers by offering on-line training in ste ad of han din g out instruction manuals. Finally, if they want to sustain customers on a long-term basis, Bankers should work towards 100% customer satisfaction that automatically fosters customer delight. J

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Bibliography
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7. Oliver R L (1997), Satisfaction: A Behavioural Perspective on the Consumer, McGraw-Hill, London. 8 . Priya Nair (2008), More Banks Offering Value-Added Services, Business Line, Saturday, January 12. 9. Shajahan S (2005), A Study on the Level of Customers Satisfaction o n Va r io u s M o d e s o f B a n k i n g Services in India, Proceedings of the International Conference, 2004 on Business and Finance, Vol. I, pp. 46-56. 10. Usha Lenka, DamodarSuar and Mohapatra K J (2009), Service Quality, Customer Satisfaction, and Customer Loyalty in Indian Commercial Banks, Journal of Entrepreneurship, Vol. 18, No. 1, pp. 47-64. 11. Uma Sekaran (2004), Research Methods for Business: A Skill Building Approach, pp. 265-286, 4 th Edition, John Wiley & Sons, Inc. Singapore. 12. ViggSilky, Mathur Garima and Holani Umesh (2007), Customer Satisfaction in Retail Services: A Comparative Study of Public and Private Sector Banks, The Journal of Indian Management & Strategy 8M, Vol. 12, No. 2, pp. 24-30. 13. VimiJham and Kaleem M Khan (2008), Customer Satisfaction with Usage of Banks Distribution Channels: An Empirical Investigation, International Journal of Financial Services Management, Vol. 3, Nos. 3 and 4, pp. 283-294.

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Appendix
A Study on Customers Preference and Satisfaction of Four Basic Banking Services in Coimbatore and Erode
Personal Information Name: ........................................... 1. Gender a) Male 2. Age a) Below-25 c) 36-45 3. Marital status a) Single 4. Occupation a) Business c) Professional 5. Educational qualification a) Up to HSC c) PG Degree 6. Annual income a) Below Rs. 1,00,000 c) Above Rs. 3,00,000 General Information 1. In which bank do you have your account? a) HDFC c) AXIS e) Canara bank g) Others Specify_________________________________ b) ICICI d) State Bank of India f ) Indian bank b) Rs. 1,00,001-3,00,000 b) UG Degree d) Others b) Employee d) Others b) Married b) 26-35 d) Above 46 b) Female

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Appendix (cont.)
2. How long are you dealing with the respective bank(s)? a) 1-3 Years c) 7-9 Years e) Above 12 years 3. Did you avail any loan from the bank? a) Yes If yes specify a) Housing loan c) Business loan e) Vehicle loan b) Personal loan d) Jewel loan f) Agriculture b) No b) 4-6 Years d) 10-12 Years

4. What is your opinion about interest rates of such services? a) Very low c) Moderate e) Very high 5. Give your opinion about service time taken to process Loan? a) Very slow c) Moderate e) Very Quick 6. Why did you prefer the above mentioned bank for availing bank loan? a) Facilities c) Good service 7. Give your overall opinion about the Loan services offered by your bank? a) Highly satisfied c) Neutral e) Highly dissatisfied 8. Are you dealing with deposit schemes? a) Yes b) No b) Satisfied d) Dissatisfied b) Initial Interest rates b) Slow d) Quick b) Low d) High

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Appendix (Cont.)
9. What kind of depository schemes do you prefer and are using? a) Fixed deposit c) Recurring deposit b) Demand deposit d) Tax saver deposit

e) Others, specify10. Reason for preferring the deposit schemes a) Services rendered by the bankers b) Interest rate attracted me c) Varieties of schemes d) Safety of my money e) Others, specify 11. What do you feel about the interest rates of such services? a) Low c) High 12. Are you satisfied with depository services and schemes offered by your Bank? a) Yes (if any) 13. Did you have any experience with insurance services offered by your banks? a) Yes b) No b) No, please specify reason b) Moderate

If yes, please give the overall satisfaction a) Very good c) Moderate e) Very poor 14. From the following listed services which one you required or advice banks to more services or changes? a) Loans c) Value added b) Deposits d) Insurance b) Good d) Poor

e) Others specify _____________

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The IUP Journal of Marketing Management, Vol. IX, No. 4, 2010

Appendix (Cont.)
15. Give your satisfactory level of value added services you have experienced:
Options ATM Locker Net banking Mobile banking Others Good Moderate Poor

16. Please give your valuable suggestion if any

Thank You

Reference # 03J-2010-11-04-01

A Study on Customers Preference and Satisfaction of Four Basic Banking Services in Coimbatore and Erode

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