BONAFIDE CERTIFICATE

This is to certify that the main project report entitled A STUDY ON SERVICE QUALITY & CUSTOMER LOYALTY- WITH SPECIAL REFERENCE TO NON BANKIN FINANCIAL CORPRATION AT HOSUR. submitted by M.VEERAMANI(AC10MBF115) is a Bonafide record of the main project done by him during the academic year 2010-2012, under my guidance and supervision in partial fulfillment of DEGREE OF MASTER OF BUSINESS ADMINISTRATION.

Date

: HOSUR

Place : .K.R.Kumar (Faculty guide) Dr R.NAVANEETHAKUMAR (Director)

Department of Management Studies Adhiyamaan College of Engineering (Autonomous) Hosur 635 109. Tamil Nadu.

Viva voice examination held on: ___________________

Internal Examiner

External Examiner

DECLARATION

I hereby declare that this project report entitled A STUDY ON SERVICE QUALITY & CUSTOMER LOYALTY- WITH SPECIAL REFERENCE TO NON BANKING

FINANCIAL CORPRATION AT HOSUR., submitted to Department of Management studies, ADHIYAMAAN COLLEGE OF ENGINEERING(Autonomous), HOSUR in Partial fulfillment of the requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION is a record of original and independent research work done by me during 2010 to 2012 under the supervision and guidance of Mr.K.R.Kumar,MBA.,M.Phil., Assistend professor, Department of Management studies, Adhiyamaan College of

Engineering(Autonomous), Hosur.

PLACE DATE

: HOSUR :

VEERAMANI . M

Acknowledgements

I proudly utilize this privilege to express my hearty thanks to our PRINCIPAL Dr.G. RANGANATH, Adhiyamaan College of Engineering, Hosur,for giving me admission in this prestigious institution. My special words of thanks to Dr.V.NAVANEETHAKUMAR, DIRECTOR of Department of Management Studies. I would like to express my sincere gratitude to my faculty guide Mr.K.R.Kumar,MBA.,M.Phil., who helped me a lot in completing my project their constant encouragement and suggestion.

VEERAMANI . M

CONTENTS CHAPTER I 1.1 1.2 1.3 1.4 II III 3.1 IV V 5.1 5.2 5.3 5.4 PARTICULARS INTRODUCTION Introduction of the study Objectives of the study Scope of the study Limitations of the study THEORITICAL PERSPECTIVE PROFILE Industry profile REVIEW OF LITERATURE METHODOLOGY Research Research methodology Sampling design/techniques Statistical tools Percentage Analysis Likert Scale Analysis Mean analysis & Standard deviation method VI ANALYSIS AND INTERPRETATION Tables & charts , gap analysis score & charts VII 7.1 7.2 7.3 VIII IX RESULTS AND DISCUSSION Findings of the study Suggestions Summary and Conclusion APPENDICES REFERENCES PAGE NO

I-CHAPTER

INTRODUCTION

INTRODUCTION

Non-Banking Financial Companies (NBFC) have rapidly emerged as an important segment of the Indian financial system. Moreover, NBFCs assume significance in the small business segment as they primarily cater to the credit requirements of the unorganized sector such as wholesale & retail traders, small-scale industries and small borrowers at the local level. NBFC is a heterogeneous group of financial institutions, performing a wide range of activities like hirepurchase finance, vehicle financing, equipment lease finance, personal loans, working capital loans, consumer loans, housing loans, loans against shares and investment, etc. NBFCs are broadly divided into three categories namely (i) NBFCs accepting deposits from banks (NBFCD); (ii) NBFCs not accepting/holding public deposits (NBFC-ND); and (iii) core investment companies (i.e. those acquiring share/securities of their group/holding/subsidiary companies to the extent of not less than 90% of total assets and which do not accept public deposits.)

The segment has witnessed considerable growth in the last few years and is now being recognized as complementary to the banking sector due to implementation of innovative marketing strategies, introduction of tailor-made products, customer-oriented services, attractive rates of return on deposits and simplified procedures, etc. While the functions of NBFCs are just like banks, there are few differences between both the institutions. These are: (i) NBFC cannot accept demand deposits; (ii) NBFC is not part of the payment and settlement system as well as it cannot issue cheques drawn on it and (iii) deposit insurance facility of Deposit Insurance & Credit Guarantee Corporation is not available for NBFC depositors unlike in the case of banks.

Regulatory Framework The RBI Act was amended in 1997 to provide for comprehensive regulatory framework for NBFCs. As per the RBI (Amendment) Act 1997, the RBI can issue directions to NBFCs & its auditors, prohibit deposit acceptance and alienation of assets by NBFCs and initiate action for winding up of NBFCs. The new regulations provide:

Compulsory registration for all NBFCs, irrespective of their holding of public deposits, for commencing and carrying on business of a non-business financial institution

The amended act also classified NBFCs into three broad categories i) NBFCs accepting public deposits; ii) NBFCs not accepting/holding public deposits; and iii) core investment companies (i.e. those acquiring shares/securities of their group/holding/subsidiary companies to the extent of not less than 90% of total assets and which do not accept public deposits.)

Minimum entry point net-worth of Rs 2.5 million which was subsequently revised upwards to Rs 20 million

Deposit mobilization linked to net-worth, business activities and credit rating Maintenance of 12.5% of their deposits in liquid assets Creation of a Reserve Fund and transfer of 20% of profit after tax but before dividend to the fund

Ceiling on maximum rate of interest that NBFCs can pay on their public deposits NBFCs with an asset size of at least Rs 1 billion or a deposit base of at least Rs 200 million are required to have Asset-Liability Management systems and constitute an Asset-Liability Management Committee

Further, in order to monitor the financial health and prudential functioning of NBFCs, the RBI issued directions regarding acceptance of deposits, prudential norms like capital adequacy, income recognition, asset classification, provisioning for bad and doubtful assets, exposure norms and other measures. For Instance, capital to risk-weighted assets ratio (CRAR) norms were made applicable to NBFCs in 1998. As per the CRAR norms, every deposit taking NBFC is required to maintain a minimum capital, consisting of Tier I and Tier II capital, of not less than 12% (15% in case of unrated deposit-taking loan investment companies) of its aggregate risk-weighted assets and of risk-adjusted value of off-balance sheet items. Besides, before 2000, the prudential norms applicable to banking sector and NBFCs were not uniform. Within the NBFC sector also, the

prudential norms applicable to deposit taking NBFCs were more stringent than those for non deposit taking NBFCs. Since 2000, the RBI has initiated measures to reduce the scope of regulatory arbitrage between banks, NBFCs-D (Deposit taking NBFCs) and NBFCs-ND (NonDeposit taking NBFCs). The regulatory framework has undergone significant change in the last few years. The regulatory policies, which mostly focused on NBFCs-D until past few years, are now paying increasing attention to NBFCs-ND as well. The change in regulatory stance is largely due to a significant increase in both the number and balance sheet size of NBFCs-ND segment that gave rise to systemic concerns. In view of these developments, NBFCs-ND with assets size of Rs 1 bin and above were classified as systemically important NBFCs (NBFCs-ND-SI) and were subjected to limited norms & regulations such as CRAR and exposure norms prescribed by the RBI. The CRAR for these companies has been set at 12% since March 31, 2009 and has been raised to 15% upto March 31, 2010. Trends & Progress of the NBFCs Business Since late 1980s up to mid 1990s, the number of NBFCs increased substantially on the back of easy access of funds from capital market IPOs and deposits from the public. In 1981, there were 7,063 NBFCs. The number went up to 24,009 in 1990 and there were as many as 55,995 NBFCs by 1995. The high deposit rates offered by NBFCs led investors to invest their funds in NBFCs. The deposit base of the NBFCs grew at an average rate of 88.6% per annum between the periods Apr-91 to Mar-97. However, strong growth in NBFCs could not be sustained as in the late 1990s several loans granted by the NBFCs turned sticky, leading some of the large NBFCs to default in repayment to their depositors. This led the RBI to introduce stringent guidelines in 1997-98 which hampered the ability of NBFCs to raise deposits. Banks also became wary of lending to NBFCs, which translated into high cost of funds for NBFCs. Moreover, increasing competition from the banking system that was opened up for private sector banks in early 1990s affected the NBFCs business. Given these developments, many NBFCs with asset base in excess of Rs 1 billion had to exit their operations. NBFCs, however, recovered from this phase and witnessed strong growth during 2000-02.

1.2OBJECTIVES OF THE STUDY

.To identifies the critical factors of service quality in the NBFC in hosur. . To identify the critical factors of customer loyalty in the NBFC in hosur. . To find out the inter relationship between service quality and customer loyalty. . To analysis service quality gap between customer loyalty.

1.3SCOPE OF THE STUDY

The research study illustrates the NBFC service quality and the level of customers loyalty. The study determines level of the customers expectation, perception and the actual state of performance of NBFC service process perspective. In this association we have been how we are going to terminate gap in this information. We conclude in this research analysis.

1.4LIMITATIONS OF THE STUDY

The sample size of only 175 was fixed and the study was based on 136 samples collected. This study is conducted in and around krishnagiri district only. But due to time constraints i couldnt coverd the whole district. So i did my research study only the hosur city. Data given by the respondents are limited to the customers own attitude, perception, knowledge and awareness. Response collected from the respondents may be sometimes biased. The project required analysis of different areas but due to the time constraint it was difficult to carry the study in dept. The research study defines only NBFC service quality and customer loyalty.

CHAPTER-II THEORITICAL PERSPECTIVE

THEORITICAL PERSPECTIVE

SERVICEQUALITY: "Service quality is a focused evaluation that reflects the customer's perception of specific dimensions of service: reliability, responsiveness, assurance, Empathy, tangibles. Satisfaction, on other hand, is more inclusive: it is influenced by perceptions of service quality, product quality, and price as well as situational factors and personal factors. "The creation of customer satisfaction can provide several benefits, including the relationship between companies and consumers are harmonious, providing a good basis for the purchase and re-creation of customer loyalty, and form a recommendation by word of mouth that can benefit the company" (Fandi Tjiptono, 1997: 24). By : Zeithaml & Bitner

Customer Loyalty
The True Meaning of Loyalty Although customer loyalty is often achieved through offers, discount coupons, rebates and other kinds of rewards, long-term customer loyalty can only be created by making your customers feel that they are your number one priority. Definition of Customer Loyalty If I were asked to define customer loyalty, my definition would look something like this: "Customer loyalty is when an organization receives the ultimate reward for the way it interacts with its customers. Loyal customers buy more, buy longer and tell more people - that's true customer loyalty. By: Ellen Goodwright

III -CHAPTER PROFILE

3.1 - INDUSTRY PROFILE

Non-Banking Financial Companies (NBFCs)

Non-banking financial companies (NBFCs) are fast emerging as an important segment of Indian financial system. It is an heterogeneous group of institutions (other than commercial and co-operative banks) performing financial intermediation in a variety of ways, like accepting deposits, making loans and advances, leasing, hire purchase, etc. They raise funds from the public, directly or indirectly, and lend them to ultimate spenders. They advance loans to the various wholesale and retail traders, small-scale industries and self-employed persons. Thus, they have broadened and diversified the range of products and services offered by a financial sector. Gradually, they are being recognised as complementary to the banking sector due to their customer-oriented services; simplified procedures; attractive rates of return on deposits; flexibility and timeliness in meeting the credit needs of specified sectors; etc. The working and operations of NBFCs are regulated by the Reserve Bank of India (RBI) within the framework of the Reserve Bank of India Act, 1934 (Chapter III B) and the directions issued by it under the Act. As per the RBI Act, a 'non-banking financial company' is defined as:- (i) a financial institution which is a company; (ii) a non banking institution which is a company and which has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner, or lending in any manner; (iii) such other non-banking institution or class of such institutions, as the bank may, with the previous approval of the Central Government and by notification in the Official Gazette, specify. Under the Act, it is mandatory for a NBFC to get itself registered with the RBI as a deposit taking company. This registration authorizes it to conduct its business as an NBFC. For the registration with the RBI, a company incorporated under the Companies Act, 1956 and desirous of commencing business of non-banking financial institution, should have a minimum net owned fund (NOF) of Rs 25 lakh (raised to Rs 200 lakh w.e.f April 21, 1999). The term 'NOF' means, owned funds (paid-up capital and free reserves, minus accumulated losses, deferred revenue expenditure and other intangible assets) less, (i) investments in shares of subsidiaries/companies in the same group/ all other NBFCs; and (ii) the book value of debentures/bonds/ outstanding loans and advances, including hire-purchase and lease finance made to, and deposits with, subsidiaries/ companies in the same group, in excess of 10% of the owned funds.

The registration process involves submission of an application by the company in the prescribed format along with the necessary documents for RBI's consideration. If the bank is satisfied that the conditions enumerated in the RBI Act, 1934 are fulfilled, it issues a 'Certificate of Registration' to the company. Only those NBFCs holding a valid Certificate of Registration can accept/hold public deposits. The NBFCs accepting public deposits should comply with the NonBanking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998, as issued by the bank. Some of the important regulations relating to acceptance of deposits by the NBFCs are:

They are allowed to accept/renew public deposits for a minimum period of 12 months and maximum period of 60 months.

They cannot accept deposits repayable on demand. They cannot offer interest rates higher than the ceiling rate prescribed by RBI from time to time.

They cannot offer gifts/incentives or any other additional benefit to the depositors. They should have minimum investment grade credit rating. Their deposits are not insured. The repayment of deposits by NBFCs is not guaranteed by RBI.

The types of NBFCs registered with the RBI are:

Equipment leasing company: - is any financial institution whose principal business is that of leasing equipments or financing of such an activity.

Hire-purchase Company: - is any financial intermediary whose principal business relates to hire purchase transactions or financing of such transactions.

Loan company: - means any financial institution whose principal business is that of providing finance, whether by making loans or advances or otherwise for any activity other than its own (excluding any equipment leasing or hire-purchase finance activity).

Investment Company: - is any financial intermediary whose principal business is that of buying and selling of securities.

Now, these NBFCs have been reclassified into three categories:

Asset Finance Company (AFC) Investment Company (IC) and Loan Company (LC). Under this classification, 'AFC' is defined as a financial institution whose principal business is that of financing the physical assets which support various productive/economic activities in the country.

Recent years have witnessed significant increase in financial intermediation by the NBFCs. This is reflected in the proposal made by the latest Working Group on Money Supply for a new measure of liquidity aggregate incorporating NBFCs with public deposits worth Rs.20 crore and above (Box 3.1). For regulatory purposes, NBFCs have been classified into 3 categories: (a) those accepting public deposits, (b) those not accepting public deposits but engaged in financial business and (c) core investment companies with 90 per cent of their total assets as investments in the securities of their group/ holding/subsidiary companies. The focus of regulatory attention is on NBFCs accepting public deposits.

As per the NBFC Acceptance of Public Deposits (Reserve Bank) Directions, 1998, the quantum of public deposit in respect of NBFCs was linked to credit rating from an approved agency so as to enable the depositor to make informed decision. The NBFCs were also encouraged to broad-base their resources through borrowings from banks and financial institutions, inter-corporate deposits / loans, secured bonds/debentures, etc., which were exempted from the definition of "public deposit". However, the Associations of NBFCs and the apex trade bodies brought to the notice of both the Government and the RBI the problem of asset-liability mismatches caused by frequent downgrading of the credit ratings of NBFCs and the consequent reduction in quantum of permissible public deposits. They also suggested

that smaller NBFCs could be exempted from the requirement of credit rating for having public deposits up to a particular limit while larger NBFCs could be allowed higher limits of public

deposits subject to minimum investment grade credit rating and higher capital adequacy requirements.

The Task

Force

on

NBFCs appointed by the Government of India submitted

its report in October, 1998, which recommended rationalization of regulations for NBFCs, improvement of the legislative framework for protecting the interests of depositors and development of NBFCs on sound and healthy lines (Box 3.4).

The modified Regulatory framework for NBFCs made by the Task Force provides for the following.

based on the recommendations

NBFCs with net owned fund (NOF) of less than Rs. 25 lakh (with or without credit rating) are not entitled to accept public deposits (as hitherto). The unrated and underrated (rating below the minimum investment grade) NBFCs in the category of equipment leasing and hire purchase finance companies with NOF of Rs. 25 lakh and above are allowed to accept public deposits up to 1.5 times of their NOF or Rs. 10 crore, whichever is less, provided their CRAR is 15 per cent or above as per their last audited balance sheet. The unrated and underrated NBFCs in the category of loan and investment companies, irrespective of their NOF and CRAR, are not entitled to accept public deposits. NBFCs in the category of equipment leasing and hire purchase finance companies with NOF of Rs. 25 lakh and above as well as minimum investment grade credit rating can accept public deposits four times of NOF provided they have CRAR of not less than 10 per cent as on 31.3.1998 and shall have CRAR of not less than 12 per cent as on 31.3.1999. NBFCs in the category of loan and investment companies with NOF of Rs. 25 lakhs and above as well as minimum investment grade credit rating can accept public deposits not

exceeding 1.5 times of NOF provided they have CRAR of 15 per cent or above with immediate effect. NBFCs in the category of equipment and hire purchase companies should endeavor to increase their CRAR to 15 per cent as early as possible.

NBFCs in the category of loan and investment companies which do not have minimum CRAR of 15 per cent as on date but otherwise comply with all the prudential norms and (a) have credit rating of AAA may accept or renew public deposits up to the level outstanding as at the close of business on December 18, 1998 or 1.5 times of the NOF whichever is more subject to the condition that they should attain CRAR of 15 per cent by March 31, 2000 and bring down the excess deposits, if any, by December 31, 2001 and (b) have

credit rating of AA/A may accept or renew public deposits as per the existing provisions of Directions (0.5/1.0 time of their NOF) but they should attain the minimum CRAR of 15 per cent on or before March 31, 2000 as per their audited balance sheet, failing which they should regularize their position by repayment or otherwise by December 31, 2001. The above benefit will not be available to those companies whose CRAR is presently 15 per cent and above but slips down below the minimum level of 15 per cent subsequently The disclosure norms for NBFCs accepting public deposits have been widened so as to enable depositors to make an informed decision.. Stipulations on prudential norms, ceiling on interest rates, payment of brokerage on public deposits, etc. remain unchanged. NBFCs have been advised not to invest more than 10 per cent of their owned fund in land and building except for their own use. The ceiling on investment in unquoted shares of companies other than their group/subsidiary companies has been fixed at 10 per cent of their owned fund for equipment leasing and hire purchase finance companies and 20 per cent of the owned fund for loan and investment companies. A time limit of 3 years has been given to the NBFCs to dispose off excess of such assets, including the assets acquired in satisfaction of their debts, wherever company surpasses the ceiling indicated above. The modified Regulatory framework for NBFC based on the recommendations made

by the Task Force provides for the following. NBFCs with net owned fund (NOF) of less than Rs. 25 lakh (with or without credit rating) are not entitled to accept public deposits (as hitherto).

The unrated and underrated (rating below the minimum investment grade) NBFCs in the category of equipment leasing and hire purchase finance companies with NOF of Rs. 25 lakh and above are allowed to accept public deposits up to 1.5 times of their NOF or Rs. 10 crore, whichever is less, provided their CRAR is 15 per cent or above as per their last audited balance sheet. The unrated and underrated NBFCs in the category of loan and investment companies, irrespective of their NOF and CRAR, are not entitled to accept public deposits. NBFCs in the category of equipment leasing and hire purchase finance companies with NOF of Rs. 25 lakh and above as well as minimum investment grade credit rating can accept public deposits four times of NOF provided they have CRAR of not less than 10 per cent as on 31.3.1998 and shall have CRAR of not less than 12 per cent as on 31.3.1999. NBFCs in the category of loan and investment companies with NOF of Rs. 25 lakhs and above as well as minimum investment grade credit rating can accept public deposits not

exceeding 1.5 times of NOF provided they have CRAR of 15 per cent or above with immediate effect. NBFCs in the category of equipment and hire purchase companies should endeavor to increase their CRAR to 15 per cent as early as possible. The following ceilings may be prescribed for public deposits in respect of different categories of NBFCs.
Type of NBFC NBFC with NOF less than Rs. 25 lakh EL/HP Company without credit rating EL/HP Company with investment grade credit rating Loan/Investment Cos with investment Grade credit rating. Limit of Public Deposits No access to public deposits

1.5 times NOF or Rs. 10 crore, Whichever is lower, subject to 15 per cent CRAR 4 times NOF 1.5 times NOF (Higher CRAR of 15 per cent).

IV- CHAPTER

REVIEW OF LITRATURE

REVIEW OF LITRATURE

Osman Mahamad,T.Ramayah and Rahim Mosahab-( 2010).The emergence of new forms of banking channels such as Internet banking, Automated Teller Machines (ATM), phone banking and also maturing financial market and global competition have forced bankers to explore the importance of customer loyalty. Therefore, studies need to focus on the changing role of the banking system band its dynamic financial market. The underlying model of SERVQUAL (Parasuraman et al., 1988) with five dimensions was used by this research to evaluate the impact of service quality on customer loyalty among bank customers in Penang, Malaysia with customer satisfaction mediating these variables. The findings show that improvement in service quality can enhance customer loyalty. The service quality dimensions that play a significant role in this equation are reliability, empathy, and assurance. The findings indicate that the overall respondents evaluate the bank positively, but still there are rooms for improvements.

Al-Rousan, M.Ramzi and Badaruddin Mohamed-(2010),In the research article deal with present Jordan hotels scenario, service quality is a vital competitive policy to keep customer support and build great base. Hotels are trying to win customer loyalty by providing enhanced quality services. This paper attempts to examine the impact of tourism service quality dimension in the Jordanian five star hotels. A total of 322 surveys were administrated to tourists who were staying at three branches Marriott hotel in Jordan. The results show that dimensions of service quality such as empathy, reliability, responsiveness and tangibility significantly predict customer loyalty. Specifically, among the dimension of tourism service quality, the most significant predictor of customer loyalty is tangibility. This paper implies that five star hotels in Jordan should also come forward and try their best to present better tourism service quality to win back their customers loyalty. International Journal of Human and Social Sciences.

Vilte Auruskeviciene, Laura Salciuviene, .Vida Skudiene-(2010).In this research study demonstrated that the three variables (functional quality, trust, and commitment) have a significant impact on IT service Pecvnia, Vilte Auruskeviciene, Laura Salciuviene and Vida Skudiene.customer loyalty (business to business segment). Technical quality does not have significant impact on customer loyalty. Further more regression analysis revealed that functional quality impact on customer loyalty is more important than trust and commitment dimensions. The most important finding from this empirical study is that functional quality is the most important in building long-term relationship with customers in a professional service market. Regression analysis revealed the fact that communication effectiveness, social benefits and special treatment benefits almost never positively relates to client loyalty. Regression analysis also revealed the fact that technical quality of a service has no positive impact on client loyalty. Where as functional quality of service has twice as strong impact on client loyalty if compared with trust and commitment the relationship dimensions defined by Morgan and Hunt (1994) that by now became almost de- facto. It was defined that functional quality of service, which was defined as the synthesis of such qualities common for all humanity as sincerity, helpfulness and amiability and such objective features as prompt reaction and proximate communication basically was the main direct reason for IT service client loyalty of the client. Chatura Ranaweera, Andy Neelys (2003).in this research article deal with the Service quality, Pricing, Consumer attitudes, Customer loyalty. This paper presents a holistic model of customer retention in corporation service quality perceptions, price perceptions, customer indifference and inertia. Data from a large-scale postal survey of telephone users in England showed that perceptions of service quality have a direct linear relationship with customer retention even in mass services with low customer contact. Price perceptions and customer indifference too were found to have a direct linear effect on retention. Further more, it was also seen how both price perceptions and customer indifference moderated the relationship between service quality perceptions and customer retention. A linear relationship between inertia and customer retention was not found. Furthermore, there was evidence to indicate that inertia was a relatively unstable condition and that reliance by service providers on inertia to retain customers could indeed be a risky strategy.

Vikas Kumar, Luciano Batista, Roger Maull (2010). This research develops a longitudinal study that builds upon previous findings that operations performance of service delivery can positively affect customer satisfaction, further extending this verdict to point out operations performance as a direct determinant of customer loyalty. Path Analysis is used as a methodological framework. This paper reports the findings of an empirical research conducted in a large telecommunications company operating in the UK. Regarding operations performance impact on customer loyalty, the research findings support the conclusion that while operations speed may help to acquire customers, it is the operations dependability that more strongly drives customer loyalty in the long term.

de.Hsiu-Yuan Hu, Ching-Chan Cheng, Shao-I Chiu and Fu-Yuan Hong (2011). Measurement of customer satisfaction in behavioral health services has received increasing emphasis due to clinicians' and researchers' desire to measure outcomes that reflect the patient's unique perspective. This study examined how overall customer satisfaction and customer loyalty associate with the medical service quality attributes offered in Taiwan using Kanos integrated model and the Customer Satisfaction Index Model. The results show that customer satisfaction was influenced by the one-dimensional and attractive attributes, and negatively affected by customer complaints. Surprisingly, the must-be attributes could not predict customer satisfaction, which suggests that competitive convergence played a role within the Taiwan context. As well, customer loyalty proved to be independent of customer satisfaction and customer complaints, which may have been due to the barriers erected to dissuade patients from changing to a new provider. The major finding suggests that hospital managers should identify and emphasize the relevant one-dimensional and attractive attributes so as to increase patient satisfaction levels. Other findings reveal new insights for researchers concerned with the quality of medical services offered in Taiwan, as well as for hospital managers who must distribute their limited resources in order to achieve the highest possible patient satisfactions.

. Ponirin Ponirin, Don R. Scot, Tania von der Heidt-(2009). This paper examines the relationship between performance assessed electronic store (e-store) service quality and e-store customer loyalty in an electronic retailing environment. The research was carried out using a webbased survey method involving 3 e-stores and 324 e-customers. The survey data was then used to test models of e-store service quality and estore customer loyalty and to assess the relationship between them. Six determinants of performance based service quality for an e-store were tested for validity and reliability. These determinants were ease of use. Empathy, merchandise, security, product delivery, and purchase option. Customer loyalty determinants that were identified were word-of-mouth communication, purchase intention and complaining behaviour. A strong positive association between e-store service quality and e-store customer loyalty was found. The paper integrates previous literature on service quality and customer loyalty and develops valid and reliable measures of performance based e-store customer service quality and e-store customer loyalty.

Selcen ozlukcen, serkan aydin, metin ates, ayse tansel cetin. (2009)This study employs six dimensions of service quality scale that is developed by Carman (2000) and Kara et al. (2005) to better understand the factors underlying healthcare customers' perceptions of service quality. These dimensions investigated are namely tangibility, reliability, responsiveness, assurance, courtesy and empathy. Sampling has been conducted at the Marmara University Hospital between June 1st and July 15th 2007. Purposive convenient sampling has been employed to 183 inpatients. Through a 5 point Likert-type scale, healthcare customers' expectations of a perfect service provider has been compared with the practices Marmara University Hospital to determine if there are any gaps. Quality of the Marmara University Hospital's healthcare services has been analyzed together with its effects on customer satisfaction and customer loyalty through a regression analysis.

Gerard T. Kyle, Nicholas D. Theodorakis, Alexandros Karageorgiou and Magsalini Lafazani (2009). In this investigation, we tested a model examining the effect of service quality on skiers satisfaction and loyalty related to two ski resorts in northern Greece. We conceptualized service quality in terms of three dimensions: interaction quality, which reflected the quality of staff at the resort; facility quality, which reflected the quality of the physical services cape at the resort; and outcome quality, which reflected the quality of the experiential outcomes. Satisfaction was measured using a single indicator examining respondents satisfaction with their resort experience. For loyalty, we considered the construct in terms of two dimen Its attitudinal dimension was measured using items examining respondents psychological commitment to the resort, and its behavioral dimension was measured using indicators of their use history of the resort (i.e., years of visitation and days within the past 12 months). Consistent with past research, the dimensions of service quality were hypothesized to have direct positive influence on satisfaction, which was hypothesized to positively influence psychological commitment and behavioral loyalty. Last, owing to literature examining the influence of activity involvement on consumer evaluations of service quality, satisfaction, and subsequent loyalty, we split our sample into low and high involvement groups and tested our model among the two groups. From our analyses, we observed positive direct associations for all of our hypothesized relations. Among the involvement groups, and contrary to our expectations, we observed that the path model better fit the data for the low involvement group in addition to accounting for a greater share of the variance in each of the dependent variables. Given the relatively compressed nature of the Greek ski season and crowded conditions impacting snow and ski quality, it appears that more highly involved skiers are more prone to move among ski resorts depending on the best available ski conditions. Also, with approximately six ski resorts within a two-and-one-half hour drive of one another, resource substitutes are readily available. These findings add to a growing literature illustrating the influence of providing quality service on consumer satisfaction, attachment, and consumption of the service offering. The model we tested illustrates that consumer loyalty reflects a developmental process that begins with the provision of quality services. Efforts to retain consumers should begin with efforts to improve the quality of the services delivered.

Sandip Ghosh Hazra and Kailash B. L. Srivastava (2009). The present Indian banking scenario, service quality is an indispensable competitive strategy to retain customer base. Banks are trying to win customer satisfaction and loyalty by providing better quality services. This study examines the relationship of service quality with customer loyalty, commitment and trust from the customers perspective in the Indian banking sector. Data was collected from 300 customers of public and private sector banks using structured interview schedules. The results show that dimensions of service quality such as assurance-empathy, reliability and tangibles significantly predict customer trust and commitment. The results also indicate that service quality is positively associated with customer loyalty. Private bank customers are more committed and loyal as they receive better quality of service. The study implies that public sector banks should also come forward and try their best to provide better quality service to win back their customers loyalty and commitment.

Saiful Islam and md.bosak Ali (2011).This study examines an interrelationship among service quality, satisfaction and customer loyalty. The objective of this study is to establish an inter-linkage among service quality, satisfaction and loyalty. For this purpose, existing SERVQUAL model has been extended to test the above linkage in a developing country context. A quantitative research approach is used in this study. A sample of 222 bank clients was drawn randomly from private and public sector banks in Bangladesh. The research findings suggest that there is a strong influence of service quality dimensions on satisfaction. It is also found that the customer satisfaction and reputation of the bank lead greater loyalty. Hence, the findings of the study would open up a new method of designing banking service in developing country like Bangladesh. It will also guide the bankers how well they could serve present and prospective customers. In fact, the study provides a framework for bankers to offer quality services.

V-CHAPTER

RESEARCH METHODOLGY

RESEARCH METHODOLGY

5.1 - RESEARCH: Research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. Research is a careful investigation or inquiry specially through search for new facts in any branch of knowledge. TITLE OF THE STUDY Service quality and customer loyalty. FIELD OF THE STUDY NBFC-(Non banking financial corporation) PERIOD OF THE STUDY: The study had been carried out for 60 days. RESEARCH DESIGN The formidable problem that follows the task of defining the research problem is the preparation of the design of the research project, popularly known as the Research Design. Decisions regarding what, where, when, how much, by what means concerning an inquiry or a research study constitute a research. A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with the economy in procedure. In fact the research design is the conceptual structure within which research is conducted; it constitutes the blue print for the collection, measurement and analysis of data.

TYPE OF RESEARCH DESIGN: The Research Design used here in this project is DESCRIPTIVE RESEARCH DESIGN.

DESCRIPTIVE RESEARCH DESIGN: Descriptive research studies are those studies which are concerned with describing the characteristics of a particular individual, or of a group. This study concerned with specific predictions, with narration of facts and characteristics concerning individual, group, or situation are all examples of descriptive research studies. Most of the social research comes under this category. The Researcher must be able to define clearly, what he/ she wants to measure and must find adequate methods for measuring it along with a clear cut definition of Population he/she wants to study. Since the aim is to obtain complete and accurate information in the said studies, the procedure to be used carefully planned. The research design must make enough provision for protection against bias and must maximize reliability, with due concern for the economical completion of the research study. The Design in such studies must be rigid and not flexible and must focus attention on the following: a) Formulating the objective of the study (what the study is about and why is it being made?) b) Designing the methods of data collection (what techniques of gathering data will be adopted?) c) Selecting the sample (how much material will be needed?) d) Collecting the data (where can the required data found and with what time period should the data be related?) e) Processing and analyzing the data f) Reporting the findings In a descriptive study the first step is to specify the objectives with sufficient precision to ensure that the data collected are relevant. If this I not done carefully, the study may not provide the desired information.

Then comes the question of selecting the methods by which the data are to be obtained. In other words, techniques for collecting the information must be devised. Several methods (viz.., observation, questionnaires, interviewing, examination of records etc) with their merits and limitations are available for the purpose and the researcher may use one or more of these methods. 5.3 - SAMPLING DESIGN/TECHNIQUES Sampling is the process of selecting a few from a bigger group to become the basis for estimating or predicting a fact, situation or outcome regarding the bigger group. SAMPLING DESIGN USED FOR THE STUDY Sampling design is to clearly define set of objects, technically called the universe to be studied. This research has definite set of universe and the sampling design used in the study is Simple Random sampling. SAMPLE UNIT/SAMPLE SIZE The method adopted for selecting the sample was Simple Random sampling. I have been circulating 175 questionnaires. But only the 136 respondents respond to me. Remaining the responands not respond properly. Finally through help of customers co-operation based i got 78 % of results about the NBFC. Researcher has used both primary and secondary data to gather more information. PRIMARY DATA: The primary data has been collected through a questionnaire from the NBFC customers. SECONDARY DATA: The secondary data are those which have already been collected by someone else and which have already been passed through the statistical process. The company profile and records, textbooks, website and internet were used to collect the secondary data.

5.4 - STATISTICAL TOOLS: The statistical methods, which are used, for the research are: Percentage Analysis. Likert Scale Analysis. Mean analysis , Standard Deviation. .Mean analysis The mean (also know as average), is obtained by dividing the sum of observed values by the number of observations, n. Although data points fall above, below, or on the mean, it can be considered a good estimate for predicting subsequent data points. The formula for the mean is given below as equation (1). The excel syntax for the mean is AVERAGE (starting cell: ending cell).

(1) Standard Deviation The standard deviation gives an idea of how close the entire set of data is to the average value. Data sets with a small standard deviation have tightly grouped, precise data. Data sets with large standard deviations have data spread out over a wide range of values. The formula for standard deviation is given below as equation (3). The excel syntax for the standard deviation is STDEV (starting cell: ending cell).

(3)

CHAPTER-6

ANALYSIS AND INTERPRETATION

6.1 PERCENTAGE ANALYSIS

TANGIBLE Data analysis &interpretation is purely based on the primary data collected through questionnaire. This analysis & interpretation is very useful for the NBFC.

USING NEW TECHNOLOGY TABLE 6.1 Strongly Agree No of Respondents Expectation percentage No of Respondents Perception percentage 40 29.41 % 12 8.8 % Agree E. Agree / N. Agree 16 11.70 % 40 29.41 % Dis agree 12 8.8 % 24 17.64 % Strongly Disagree 4 2.94 % 4 2.94 % Total

64 47.05 % 56 41.17 %

136 100 % 136 100 %

INFERENCE; EXPECTATION The table shows that 29.41% of respondents strongly agree that using new technology. 47.5%of respondents agree, 11.70% of respondents E. Agree / N. Agree, 8.8% of respondents disagree, and 2.94% of respondents strongly disagree. Majority of respondents 47.5% are agree that using new technology. PERCEPTION The table shows that 8.8% of respondents strongly agree that using new technology. 41.17% of respondents agree, 29.41% of respondents E.AGREE / N.AGREE, 17.64% of respondents disagree, and 2.94% of respondents strongly disagree. Majority of respondents 41.17% are agree that using new technology.

PROVIDING THE PHYSICAL FACILITY CHART 6.2

45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 20.58% 14.70%

41.17%

29.41% 26.47% 17.64% 23.52% Exp Pre 8.80% 11.76% 5.88%

s.agree

agree

e.ag/n.ag

d.agree

s.d.agree

INFERENCE: EXPECTATION The table shows that 14.70% of respondents strongly agree that providing the physical facility. 41.17% of respondents agree, 29.41% of respondents E.AGREE / N.AGREE, 8.80% of respondents disagree, and5.88% of respondents strongly disagree. Majority of respondents 41.17% are agree that providing the physical facility. PERCEPTION The table shows that 20.58% of respondents strongly agree that providing the physical facility. 17.64% of respondents agree, 26.47% of respondents E.AGREE / N.AGREE, 23.52% of respondents disagree, and 11.76% of respondents strongly disagree. Majority of respondents 26.47% are either agree / not agree that providing the physical facility.

USING SAME DRESS CODE

TABLE 6.3 Strongly Agree No of Respondents 32 44 Agree E Agree / N Agree 28 DisAgree 28 Strongly Disagree 4 136 Total

Expectation percentage No of Respondents Perception percentage

23.52 %

32.35 %

20.58 %

20.58 %

2.94 %

100%

20 14.70 %

28 20.58 %

36 26.47 %

44 32.35 %

8 5.88 %s

136 100%

INFERENCE: EXPECTATION The table shows that 23.52% of respondents strongly agree that using same dress code. 32.35% of respondents agree, 20.58% of respondents E.Agree / N.agree, 20.58% of respondents disagree, and 2.94% of respondents strongly disagree. Majority of respondents 32.35% are agree that using same dress code. PERCEPTION The table shows that 14.70% of respondents strongly agree that using same dress code. 20.58% of respondents agree, 26.47% of respondents E.Agree / N.agree, 32.35% of respondents disagree, and 5.88% of respondents strongly disagree. Majority of respondents 32.35% are Disagree that using same dress code.

MATERIALS ARE VISUALY APPEALING CHART6.4

s.d.agree d.agree e.ag/n.ag agree s.agree

8.80%

23.52% 23.52% 29.41% 14.70% 17.64% 23.52% 35.29% Pre Exp

8.80%

14.70%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%

40.00%

INFERENCE: EXPECTATION The table shows that 8.80% of respondents strongly agree that materials are visually appealing. 35.29% of respondents agree, 17.64% of respondents E.Agree / N.agree, 29.41% of respondents disagree, and 3.80% of respondents strongly disagree. Majority of respondents 35.29% are agree that materials are visually appealing. PERCEPTION The table shows that 14.70% of respondents strongly agree that metrials are visually appealing.23.52% of respondents agrees, 14.70% of respondents E.Agree / N.agree, 23.52% of respondents disagree, and 23.52% of respondents strongly disagree. Majority of respondents 23.52% are Agree, Disagree, & strongly disagree that materials are visually appealing.

RELIABILITY

DELIVER THE SERVICE AT PROMISE TIME

TABLE 6.5 Strongly Agree No of Respondents Expectation percentage No of Respondents Perception percentage 20 14.70 % 56 41.17 % 16 11.76 % 28 20.58 % 16 11.76 % 136 100 % 56 41.17 % 48 35.29 % Agree E.Agree / N.Agree 8 5.88 % Disagree 8 5.88 % Strongly Disagree 16 11.76 % 136 100 % Total

INFERENCE: EXPECTATION The table shows that 41.17% of respondents strongly agree that deliver the service at promise time. 35.29% of respondents agree, 5.88% of respondents E.Agree / N.agree, 5.88% of respondents disagree, and 11.76% of respondents strongly disagree. Majority of respondents 41.17% are strongly agree that deliver the service at promise time. PERCEPTION The table shows that 14.70% of respondents strongly agree that deliver the service at promise time. 41.17% of respondents agree, 11.76% of respondents E.Agree / N.agree, 20.58% of respondents disagree, and 11.76% of respondents strongly disagree. Majority of respondents 41.17% are agree that deliver the service at promise time.

INTEREST IN SOLVING PROBLEM CHART 6.6

40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% s.agree 23.52% 17.64%

38.23%

17.64%

23.52% 20.58%

26.47% 17.64% Exp Pre 8.80% 5.88%

agree

e.ag/n.ag

d.agree

s.d.agree

INFERENCE: EXPECTATION The picture shows that 17.64% of respondents strongly agree that interest in solving problem 38.23% of respondents agree, 20.58% of respondents E.Agree / N.agree, 17.64% of respondents disagree, and 5.88% of respondents strongly disagree. Majority of respondents 38.23% are agree that interest in solving problem. PERCEPTION The picture shows that 23.52% of respondents strongly agree that interest in solving problem. 17.64% of respondents agree, 23.52% of respondents E.Agree / N.agree, 26.47% of respondents disagree, and 8.80% of respondents strongly disagree. Majority of respondents 26.47% are Disagree that interest in solving problem.

PERFORM SERVICE RIGHT FIRST TIME

TABLE 6.7 Strongly Agree N .of Respondents Expectation percentage No of Respondents Perception percentage 12 14.70% 44 32.34 % 12 8.8 % 36 26.47 % 24 17.64 % 136 100 % 32 23.52 % 64 47.05 % Agree E.Agree / N.Agree 16 11.76 % Disagree 20 14.70 % Strongly Disagree 4 2.94 % 136 100 % Total

INFERENCE: EXPECTATION The table shows that 23.52% of respondents strongly agree that perform service right first time. 47.5% of respondents agree, 11.76% of respondents E.Agree / N.agree, 14.70% of respondents disagree, and 2.94% of respondents strongly disagree. Majority of respondents 47.5% are agree that perform service right first time. PERCEPTION The table shows that 14.70% of respondents strongly agree that perform service right first time. 32.34% of respondents agree, 8.8% of respondents E.Agree / N.agree, 26.47% of respondents disagree, and 17.64% of respondents strongly disagree. Majority of respondents 41.17% are agree that perform service right first time.

FOLLOW THE PROMISE TIME CHART 6.8

30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% s.agree agree e.ag/n.ag 8.80% Exp 11.76% Pre 17.64% 23.52% 17.64% 26.47% 26.47% 23.52% 20.58% 23.52%

d.agree

s.d.agree

INFERENCE: EXPECTATION The picture shows that 17.64% of respondents strongly agree that follow the promise time. 23.52% of respondents agree, 20.58% of respondents E.Agree / N.agree, 26.47% of respondents disagree, and 11.76% of respondents strongly disagree. Majority of respondents 26.47% are Disagree that follow the promise time. PERCEPTION The picture shows that 8.80% of respondents strongly agree that follow the promise time. 17.64% of respondents agree, 23.52% of respondents E.Agree / N.agree, 26.47% of respondents disagree, and 23.52% of respondents strongly disagree. Majority of respondents 26.47% are Disagree that follow the promise time.

RESPONSIVENES

TELL ABOUT NBFC SERVICE PERFOMANCE TABLE 6.9 Strongly Agree No of Respondents Expectation percentage No of Respondents Perception percentage 28 20.58 % 28 20.58 % 36 26.47 % 28 20.58 % 16 11.76 % 136 100 % 56 41.17 % 44 32.35 % Agree E.Agree / N.Agree 4 2.94 % DisAgree 24 17.64 % Strongly. Disagree 8 5.88 % 136 100 % Total

INFERENCE: EXPECTATION The table shows that 41.17% of respondents strongly agree that tell about NBFC service performance. 32.35% of respondents agree, 2.94% of respondents E.Agree / N.agree, 17.64% of respondents disagree, and 5.88% of respondents strongly disagree. Majority of respondents 41.17% are agree that tell about NBFC performance. PERCEPTION The table shows that 20.58% of respondents strongly agree that tell about NBFC performance. 20.58% of respondents agree, 26.47% of respondents E.Agree / N.agree, 20.58% of respondents disagree, and 11.76% of respondents strongly disagree. Majority of respondents 26.47% are E.agree / N.agree that tell about NBFC performance.

TELL ABOUT PROMPT SERVICE CHART 6.10

40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% s.agree 14.70% 11.76%

35.29% 35.29% 29.41% 26.47%

17.64% 11.76% 8.80% 8.80%

Exp Pre

agree

e.ag/n.ag

d.agree

s.d.agree

INFERENCE; EXPECTATION The picture shows that 14.70% of respondents strongly agree that prompt service. 35.29% of respondents agree, 29.41% of respondents E.Agree / N.agree, 11.76% of respondents disagree, and 8.80% of respondents strongly disagree. Majority of respondents 35.29% are Agree that prompt service. PERCEPTION The picture shows that 11.76% of respondents strongly agree that prompt service. 35.29% of respondents agree, 26.47% of respondents E.Agree / N.agree, 17.64% of respondents disagree, and 8.80% of respondents strongly disagree. Majority of respondents 35.29% are Agree that prompt service.

WILLING TO HELP THE CUSTOMERS TABLE 6.11 Strongly E.Agree / Agree 36 26.47 % N.Agree 20 14.70 % DisAgree 36 26.47 % Strongly Disagree 8 5.88 % Total 136 100 %

Description
No of Respondents Expectation percentage No of Respondents Perception percentage

Agree 36 26.47 %

20 14.70 %

36 26.47 %

16 11.76 %

48 35.29 %

16 11.76 %

136 100 %

INFERENCE; EXPECTATION The table shows that 26.47% of respondents strongly agree that willing to help the customers. 26.47% of respondents agree, 14.70% of respondents E.Agree / N.agree, 26.47% of respondents disagree, and 5.88% of respondents strongly disagree. Majority of respondents 26.47% are strongly agree, Agree & Disagree that willing to help the customers. PERCEPTION The table shows that 14.70% of respondents strongly agree that willing to help the customers. 26.47% of respondents agree, 11.76% of respondents E.Agree / N.agree, 35.29% of respondents disagree, and 11.76% of respondents strongly disagree. Majority of respondents 35.29% are Disagree that willing to help the customers.

NOT BUSY TO RESPOND QUERIES CHART 6.12

44.11%

45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% s.agree 5.88% 5.88%

32.35%

32.35% 29.41% 17.64% 11.76% 11.76% 8.80% Exp Pre

agree

e.ag/n.ag

d.agree

s.d.agree

INFERENCE: EXPECTATION The picture shows that 5.88% of respondents strongly agree that busy to respond queries. 32.35% of respondents agree, 17.64% of respondents E.Agree / N.agree, 32.35% of respondents disagree, and 11.76% of respondents strongly disagree. Majority of respondents 32.35% are Agree & Disagree that busy to respond queries. PERCEPTION The picture shows that 5.88% of respondents strongly agree that busy to respond queries. 44.11% of respondents agree, 11.76% of respondents E.Agree / N.agree, 29.41% of respondents disagree, and 8.80% of respondents strongly disagree. Majority of respondents 44.11% are Agree that busy to respond queries.

ASSURANCE

CREATING INSTILL CONFIDENCE TABLE 6.13 Strongly E.Agree/ Agree 32 23.52 % N.Agree 28 20.58 % DisAgree 20 14.70 % Strongly Disagree 4 2.94 % Total 136 100%

Description
No of Respondents Expectation percentage No of Respondents Perception percentage

Agree 52 38.23 %

36 26.47 %

40 29.41 %

20 14.70 %

20 14.70 %

20 14.70s %

136 100%

INFERENCE: EXPECTATION The table shows that 38.23% of respondents strongly agree that creating instill confidence. 23.52% of respondents agree, 20.58% of respondents E.Agree / N.agree, 14.70% of respondents disagree, and 2.94% of respondents strongly disagree. Majority of respondents 38.23% are strongly agree that creating instill confidence. PERCEPTION The table shows that 26.47% of respondents strongly agree that creating instill confidence. 29.41% of respondents agree, 14.70% of respondents E.Agree / N.agree, 14.70% of respondents disagree, and 14.70% of respondents strongly disagree. Majority of respondents 29.41% are Agree that creating instill confidence.

DOING SAFE MONEY / SERVICE TRANSACTION CHART 6.14

40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% s.agree 11.76% 26.47%

38.23% 35.29% 26.47%

14.70% 8.80%

14.70% 11.76% 11.76%

Exp Pre

agree

e.ag/n.ag

d.agree

s.d.agree

INFERENCE: EXPECTATION The table shows that 26.47% of respondents strongly agree that doing safe money/service transaction. 38.23% of respondents agree, 8.80% of respondents E. Agree / N. agree, 14.70% of respondents disagree, and 11.76% of respondents strongly disagree. Majority of respondents 38.23% are Agree that doing safe money/service transaction. PERCEPTION The table shows that 11.76% of respondents strongly agree that doing safe money/service transaction.26.47 % of respondents agree, 35.29% of respondents E.Agree / N.agree, 14.70% of respondents disagree, and 11.76% of respondents strongly disagree. Majority of respondents 35.29% are E.agree / N.agree that doing safe money/service transaction.

EMPLOYEES ARE CONSISTENTLY COURTEOUS TABLE 6.15 Strongly Agree No of Respondents Expectation percentage No of Respondents Perception percentage 36 26.47 % 44 32.35 % 20 14.70 % 24 17.64 % 12 8.8 % 136 100% 20 14.70 % 36 26.47 % Agree E.Agree / N.Agree 32 23.52 % DisAgree 40 29.41 % Strongly Disagree. 8 5.88 % 136 100% Total

INFERENCE: EXPECTATION The table shows that 14.70% of respondents strongly agree that employees are consistency courteous. 26.47% of respondents agree, 23.52% of respondents E.Agree / N.agree, 29.41% of respondents disagree, and 5.80% of respondents strongly disagree. Majority of respondents 29.41% are Disagree that employees are consistently courteous. PERCEPTION The table shows that 26.47% of respondents strongly agree that employees are consistently courteous. 32.35% of respondents agree, 14.70% of respondents E.Agree / N.agree, 17.64% of respondents disagree, and 8.8% of respondents strongly disagree. Majority of respondents 32.35% are Agree that employees are consistently courteous.

EMPLOYEES ARE HAVE ENOUGH KNOWLEDGE CHART 6.16

45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 11.76% 8.80%

44.11%

44.44%

23.52% Exp 11.76% 14.70% 8.80% 11.76% 2.94% s.agree agree e.ag/n.ag d.agree Pre

s.d.agree

INFERENCE: EXPECTATION The table shows that 11.76% of respondents strongly agree that employees are having enough knowledge. 44.11% of respondents agree, 8.80% of respondents E.Agree / N.agree, 23.52% of respondents disagree, and 11.76% of respondents strongly disagree. Majority of respondents 44.11% are Agree that employees are have enough knowledge. PERCEPTION The table shows that 8.80% of respondents strongly agree that employees are have enough knowledge. 11.76 % of respondents agree, 14.70% of respondents E.Agree / N.agree, 44.44% of respondents disagree, and 2.94% of respondents strongly disagree. Majority of respondents 44.44% are Disagree that employees are have enough knowledge.

EMPATHY

GIVES INDIVIDUAL ATTENTION TABLE 6.17 Strongly Agree No of Respondents 32 32 Agree E.Agree / N.Agree 32 DisAgree 28 Strongly Disagree 12 136 Total

Expectation percentage No of Respondents Perception percentage

23.52 %

23.52 %

23.52 %

20.58 %

8.8 %

100%

48 35.29 %

48 35.29 %

16 11.76 %

20 14.70 %

4 2.94 %

136 100 %

INFERENCE: EXPECTATION The table shows that 23.52% of respondents strongly agree that gives individual attention. 23.52% of respondents agree, 23.52% of respondents E.Agree / N.agree, 20.58% of respondents disagree, and 8.8% of respondents strongly disagree. Majority of respondents 23.52% are strongly agree Agree, & E.agree / N.agree that gives individual attention. PERCEPTION The table shows that 35.29% of respondents strongly agree that gives individual attention.. 35.29% of respondents agree, 11.76% of respondent E.Agree / N.agree, 14.70% of respondents disagree, and 2.94% of respondents strongly disagree. Majority of respondents 35.29% are Agree that gives individual attention.

CONVENIENT OPERATING HOURS CHART 6.18

40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% s.agree agree 20.58% 14.70% 14.70% 32.35%

38.23%

17.64%

23.52% 20.58%

Exp Pre 11.76% 5.88%

e.ag/n.ag

d.agree

s.d.agree

INFERENCE: EXPECTATION The table shows that 20.58% of respondents strongly agree that convenient operating hour. 32.35% of respondents agree, 17.64% of respondents E.Agree / N.agree, 23.52% of respondents disagree, and 5.88% of respondents strongly disagree. Majority of respondents 32.35% are Agree that convenient operating hours. PERCEPTION The table shows that 14.70% of respondents strongly agree that convenient operating hours.14.70 % of respondents agree, 38.23% of respondents E.Agree / N.agree, 20.58% of respondents disagree, and 11.76% of respondents strongly disagree. Majority of respondents 38.23% are E.agree / N.agree that convenient operating hours.

UNDERSTAND CUSTOMER SPECIFIC NEEDS TABLE 6.19 Strongly Agree No of Respondents Expectation percentage No of Respondents Perception percentage 28 20.58 % 52 38.23 % 12 8.8 % 40 14.70 % 28 17.64 % 136 100 % 24 17.64 % 48 35.29 % Agree E.Agree/ N.Agree 28 20.58 % DisAgree 20 14.70 % Strongly Disagree 16 11.76 % 136 100 % Total

INFERENCE: EXPECTATION The table shows that 17.64% of respondents strongly agree that understand customer specific needs. 35.29% of respondents agree, 20.58% of respondents E.Agree / N.agree, 14.70% of respondents disagree, and 11.76% of respondents strongly disagree. Majority of respondents 35.29% are Agree that understand customer specific needs. PERCEPTION The table shows that 20.58% of respondents strongly agree that understand customer specific needs. 38.23% of respondents agree, 8.80% of respondents E.Agree / N.agree, 14.70% of respondents disagree, and 17.64% of respondents strongly disagree. Majority of respondents 38.23% are Agree that understand customer specific needs.

GIVES PERSONAL ATTENTION CHART 6.20

30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

26.47% 23.52% 20.58% 14.70% 11.76% 8.80%

29.41% 23.52% 20.58% 20.58% Exp Pre

s.agree

agree

e.ag/n.ag

d.agree

s.d.agree

INFERENCE: EXPECTATION The table shows that 23.52% of respondents strongly agree that gives personal attention. 20.58% of respondents agree, 11.76% of respondents E.Agree / N.agree, 20.58% of respondents disagree, and 23.52% of respondents strongly disagree. Majority of respondents 23.52% are strongly agree & strongly disagree that gives personal attention. PERCEPTION The table shows that 26.47% of respondents strongly agree that gives personal attention.14.70 % of respondents agree, 8.80% of respondents E.Agree / N.agree, 29.41% of respondents disagree, and 20.58% of respondents strongly disagree. Majority of respondents 29.41% are Disagree that gives personal attention.

CUSTOMER LOYALTY

MINIMUM CHARGES FOR SERVICE PROCESS TABLE 6.21 Strongly Agree No of Respondents Expectation percentage No of Respondents Perception percentage 44 32.35 % 36 26.47 % 12 8.8 % 24 17.64 % 20 14.70 % 136 100 % 52 38.28 % 44 32.35 % Agree E.Agree / N.Agree 12 8.8 % DisAgree 12 8.8 % Strongly Disagree 16 11.76 % 136 100 % Total

INFERENCE; EXPECTATION The table shows that 38.28% of respondents strongly agree that minimum charges for service process. 32.35% of respondents agree, 8.8% of respondents E.Agree / N.agree, 8.8% of respondents disagree, and 11.76% of respondents strongly disagree. Majority of respondents 38.28% are strongly agree that minimum charges for service process. PERCEPTION The table shows that 32.35% of respondents strongly agree that minimum charges for service process. 26.47% of respondents agree, 8.80% of respondents E.Agree / N.agree, 17.64% of respondents disagree, and 14.70% of respondents strongly disagree. Majority of respondents 32.35% are strongly agree that minimum charges for service process.

REFER FOR YOUR FRIENDS & RELATIVES CHART 6.22

38.23%

40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% s.agree 20.58% 20.58%

29.41% 26.47% 20.58% 14.70% 14.70% 11.76% 2.94% agree Exp Pre

e.ag/n.ag

d.agree

s.d.agree

INFERENCE: EXPECTATION The table shows that 20.58% of respondents strongly agree that refer for your friends & relatives. 38.23% of respondents agree, 2.94% of respondents E.Agree / N.agree, 26.47% of respondents disagree, and 11.76% of respondents strongly disagree. Majority of respondents 38.23% are Agree that refer for their friends & relatives. PERCEPTION The table shows that 20.58% of respondents strongly agree that refer for your friends & relatives.20.58 % of respondents agree, 14.70% of respondents E.Agree / N.agree, 29.41% of respondents disagree, and 14.70% of respondents strongly disagree. Majority of respondents 29.41% are Disagree that refer for their friends & relatives.

INTRODUCING NEW PLANS & OFFERS TABLE 6.23 Strongly Agree No of Respondents Expectation percentage No of Respondents Perception percentage 44 32.35 % 16 11.76 % 32 23.52 % 20 14.70 % 24 17.64 % 136 100 % 40 29.41 % 24 17.64 % Agree E.Agree / N.Agree 40 29.41 % DisAgree 20 14.70 % Strongly Disagree 12 8.8 % 136 100% Total

INFERENCE; EXPECTATION The table shows that 29.41% of respondents strongly agree that introducing new plans & offers. 17.64% of respondents agree, 29.41% of respondents E.Agree / N.agree, 14.70% of respondents disagree, and 8.8% of respondents strongly disagree. Majority of respondents 29.41% are strongly agreed & E.Agree / N.agree that introducing new plans & offers. PERCEPTION The table shows that 32, 35% of respondents strongly agree that introducing new plans & offers. 11.76% of respondents agree, 23.52% of respondents E.Agree / N.agree, 14.70% of respondents disagree, and 17.64% of respondents strongly disagree. Majority of respondents 32.35% are strongly agree that introducing new plans & offers.

SERVICE PROCESS COMPARE WITH OTHER COMPETITORS CHART 6.24

29.41% 29.41% 26.47% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% s.agree agree e.ag/n.ag 8.80% 8.80% 17.64% 14.70% Exp Pre 20.58% 23.52% 20.58%

30.00%

d.agree

s.d.agree

INFERENCE: EXPECTATION The table shows that 17.64% of respondents strongly agree that service process compare with other competitors. 29.41% of respondents agree, 20.58% of respondents, 23.52% of E.Agree / N.agree respondents disagree, and 8.8% of respondents strongly disagree. Majority of respondents 29.41% are Agree that service process compare with other competitors. PERCEPTION The table shows that 14.70% of respondents strongly agree that service process compare with other competitors, 29.41 % of respondents agree, 26.47% of respondents E.Agree / N.agree, 20.58% of respondents disagree, and 8.80% of respondents strongly disagree. Majority of respondents 29.41% are Agree that service process compare with other competitors.

THINKING ABOUT BEFORE & AFTER JOINED NBFC TABLE 6.25 Strongly Agree No of Respondents Expectation percentage No of Respondents Perception percentage 28 20.58 % 28 20.58 % 20 14.70 % 40 29.41 % 20 14.70 % 136 100 % 28 20.58 % 52 38.23 % Agree E.agree / N.agree 4 2.94 % DisAgree 36 26.47 % Strongly Disagree 16 11.76 % 136 100 % Total

INFERENCE: EXPECTATION The table shows that 20.58% of respondents strongly agree that thinking about before & after joined NBFC. 38.23% of respondents agree, 2.94% of respondents E.Agree / N.agree, 26.47% of respondents disagree, and 11.76% of respondents strongly disagree. Majority of respondents 38.23% are Agree that thinking about before & after joined NBFC. PERCEPTION The table shows that 20.58% of respondents strongly agree that. Thinking about before & after joined NBFC. 20.58% of respondents agree, 14.70% of respondents, 29.41% of respondents E.Agree / N.agree disagree, and 14.70% of respondents strongly disagree. Majority of respondents 29.41% are Disagree that thinking about before & after joined NBFC.

EXPECTATION STATMENTS TANGIBLE Mean SD

PERCEPTION Mean SD

SERVICE GAP SCORE Mean SD E-P E-P

The new technology using in NBFC The NBFC providing the physical facility Employees are used same dress code The materials are visually appealing NBFC
Average gap RELIABILITY

3.9117 3.5 3.5294 3.0588

1.0111 1.7468 2.0437 1.9931

3.3529 3.0880 3.0441 2.8235

1.6765 2.3350 2.1282 2.4320

0.5588 0.412 0.4853 0.2353 0.4228 0.6176 0.2353 0.7352 0.4706 0.5146 0.6765 0.1176 0.4412 - 0.205 0.3600 0.4118 0.353 - 0.353 0.7647 0.4706 - 0.529 0.3970 0.0294 - 0.117 0.2681 0.1472 0.2058 0.1764 0.6176 0.2647
0.3529

- 0.665 - 0.588 - 0.084 - 0.439

-0.444

NBFC is deliver the service at promised time The NBFC interest in solving problem The NBFC perform service right first time The level of NBFC follow the promised time
Average gap RESPONSIVENESS

3.8823 3.4411 3.7352 3.0882

2.0328 1.9566 1.8266 2.2758

3.2647 3.2058 3 2.6176

2.0991 2.3411 2.3389 2.1905

- 0.066 - 0.384 - 0.516 0.0853 -0.028 - 0.143 - 0.022 -0.019 0.1611 -5.725 - 0.043 0.2489 - 0.089 - 0.113 -0.123 0.4151 0.0218 - 0.199 - 0.034 0.0509 0.0509 - 0.038 - 0.303 - 0.368 - 0.229
-0.2217

Tell about NBFC performance of service Give mark about prompt service in NBFC NBFC willingness to help the customers In NBFC not busy to respond queries
Average gap ASSURANCE

3.8529 3.3308 3.4117 2.8823

2.1216 1.8855 2.2765 1.9671

3.1764 3.2132 2.9705 3.0882

2.2651 1.9080 2.2962 1.8060

NBFC creating instill confidence NBFC doing safe money/service transaction NBFC employees are consistently courteous Employees are have enough knowledge
Average gap EMPATHY

3.7941 3.5294 3.1470 3.2058

2.2747 2.1793 2.0915 2.0663

3.3823 3.1764 3.5 2.4411

2.3200 1.9204 2.1811 2.1795

NBFC gives individual attention Always maintain convenient operating hours Doing understand customers specific needs NBFC gives personal attention
Average gap CUSTOMER LOYALTY

3.3235 3.3970 3.3235 2.8529

2.3813 2.1222 2.0849 2.6924

3.8529 3 3.2941 2.9705

1.9662 2.1004 2.2843 2.7273

NBFC minimum charges for service process Would you refer for your friends & relatives Introducing new plans & offers to customers Service act compare with other competitors Thinking Before & after joining in NBFC
Average gap

3.5882 3.7352 3.4411 3.2352 3.2941

2.3228 1.8239 2.2596 2.0491 2.2269

3.4410 3.5294 3.2647 2.6176 3.0294

2.2719 1.8625 2.5632 2.4176 2.4566

AVERAGE MEAN GAP

0.6 0.5 0.4 0.3 0.2 0.1 0 0.4228 0.36 0.2681 0.5146 0.4706 0.3529

The above chart shows average gap of tangible, reliability, responsiveness, assurance, empathy and customer loyalty.

INFERENCE: The tangible perspective the average mean gap 0.4228. The Reliability perspective the average mean gap 0.5146. The Responsiveness perspective the average mean gap 0.36. The Assurance perspective the average mean gap 0.4706. The empathy perspective the average mean gap 0.2681. The customer loyalty perspective the average mean gap 0.3529.

The major of the average mean gap is reliability perspective 0.5146.

AVERAGE STANDARD DEVIATION GAP

1 0 0 -1 -0.444 -2 -3 -4 -5 -6 -7 -5.725 -0.028 -0.123 1 2 3 4

0.0509 5 6 -0.2217 7

The above chart shows average standard deviation gap of tangible, reliability, responsiveness, assurance, empathy and customer loyalty. INFERENCE: The tangible perspective the average standard deviation gap -0.444. The Reliability perspective the standard deviation gap -0.028. The Responsiveness perspective the standard deviation gap -0. The Assurance perspective the standard deviation gap 0.4706. The empathy perspective the standard deviation gap 0.2681. The customer loyalty perspective the standard deviation gap 0.3529.

The major of the average mean gap is reliability perspective 0.5146.

VII-CHAPTER

RESULTS AND DISCUSSION

RESULTS AND DISCUSSION

7.1-FINDINGS
1. Majority of the respondents answered that NBFC are using new technology. 2. Majority of the respondents agreed that NBFC physical facilities are very nice. 3. NBFC employees are not using same dress code. 4. Materials in the NBFC are not visually appealing. 5. NBFCs are delivering services at promised time. 6. Majority of the respondents are not agreed that NBFC are not taking interest in solving problems. 7. Majority of the respondents agreed performing same service for first time customers also. 8. Majority of the respondents are not agreed that NBFC are performing service at a right time. 9. Employees in the NBFC are not willing to help the customers. 10. Employees in the NBFC are giving right solutions to the respondent queries. 11. Respondents are agreed that NBFC are giving instill confidence to customers. 12. NBFCs are doing safe money/service transactions. 13. Employees in the NBFC are consistently well-mannered to customers. 14. Employees in the NBFC are not having enough knowledge about the updated trends in the NBFC. 15. Majority of the respondents agreed that employees are giving individual attention to customers. 16. Majority of the respondents are not satisfied with convenient working hours. 17. Majority of them are agreed that NBFCs understand the specific needs of the customers. 18. NBFCs are not giving personal attention to customers. 19. NBFCs are charging minimum charges for processing the service. 20. Majority of the respondents are not referring NBFC to others.

7.2-SUGGESTION
1. The employees in the NBFC can use same dress code to show difference. 2. NBFCs can concentrate more on visualization of materials. 3. The employees in the NBFC can concentrate more on solving the problems of the customers. 4. NBFCs should follow the promised timings. 5. NBFC can concentrate more on serving the customers. 6. Companies can give more attention in training the employees for giving proper service. 7. The NBFC companies can concentrate more in showing personal attention to customers. 8. NBFC can provide less rate of interest for satisfying the customers. 9. NBFC can concentrate more on safety and security measures. 10. NBFC companies can choose proper environments for their service providing locations.

7.3 - CONCLUSION This project was done in NBFC sector in Hosur to find out the service quality and consumer loyalty. Through the study we can get to know the NBFC companies are lacking in reliability dimension apart from all the four dimensions companies are doing well. The technology usage level is very much improving day by day part from technology the physical facilities which they are using is very much visually appealing. Where in the case of the promised delivery and time management the companies are concentrating more on the segments. By the end of the study we can say that service quality is much important for all the NBFC companies to measure their quality of service and also to improve their service in future period. To grow consistently in the field companies need to concentrate more on service quality.

VIII-APPENDICES
A STUDY ON SERVICE QUALITY AND CUSTOMER LOYALTY- WITH REFERENCE TO - NBFC
AGE INCOME : ; GENDER QUALIFICATION ;

:
5 1 2 Perception 3 4 5

Service quality Dimensions / Attributes TANGIBLE The level of new technology using in NBFC The level of NBFC providing the physical facility NBFC employees are used same dress code The materials are visually appealing NBFC RELIABILITY NBFC is deliver the service at promised time The level of NBFC interest in solving problem The NBFC perform service right first time The level of NBFC follow the promised time RESPONSIVENESS T ell your about performance of service in NBFC Please give the mark about prompt service in NBFC NBFC willingness to help the customers In NBFC not busy to respond queries ASSURANCE NBFC is creating instill confidence among the customers The NBFC doing safe money/service transaction NBFC employees are consistently courteous The NBFCemployees are have enough knowledge EMPATHY NBFC gives individual attention Always maintain convenient operating hours NBFC is doing understand customers specific needs NBFC gives personal attention CUSTOMER LOYALTY NBFC is collecting minimum charges for service process would you refer about NBFC for your friends & relatives NBFC is introducing new plans & offers to customers NBFC service process compare with other compititors Your thinking Before joining NBFC& after joining /know

Expectation 3 4

1-STRONGLY AGREE

2-AGREE

3-NUTREL

4-DIS AGREE

5--STRONGLY DISAGREE

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