AJRBFVolume1,Issue2(November,2011)ISSN:22497323

A Journal of Asian Research Consortium

AJRBF:
ASIAN JOURNAL OF RESEARCH IN BANKING AND FINANCE A STUDY ON CONSUMER PERCEPTION TOWARDS SERVICES OF SELECTED PUBLIC AND PRIVATE SECTOR BANKS
DR. M. DHANABHAKYAM*; V. ANITHA**

*Assistant Professor, Department of Commerce, Bharathiar University, Coimbatore - 641046. **Ph.D Scholar, Department of Commerce, Bharathiar University, Coimbatore - 641046. ABSTRACT Banking system occupies an improvement place in a nations economy. A banking institution is indispensable in a modern society. The following objectives of the study are (i) To study the different services provided by the bank to the customers (ii) To examine the expectations and the level of satisfaction of the customers towards the services rendered by public and private sector banks. The study has been conducted in Coimbatore city, which is one of the largest cities in Tamilnadu. This study is based on questionnaire methods. A sample of 300 customers has been selected for the using the convenient sampling method. The statistical tests are conducted at 5% and 1% level of significant the main statistical tools are used. This study concluded that the new environment the bank has to sell its product with a view to maximize the profit and to attract the customers with better services.
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INTRODUCTION Banking system occupies an improvement place in a nations economy. A banking institution is indispensable in a modern society. It plays a pivotal role in the economic development of a country and from the core of the money market in an advanced country. Global banking scenario is currently undergoing radical transformation owing to the liberalization, privatization and globalization measures, introduced by the various economies of the world and Indian banking industry is no exception to the ongoing trend. Prior to liberalization of the economy, public sector commercial banks in India functioned in a protected environment and banking transactions were simple characterized by less competition and customer orientation. The phenomenon of globalization brought about significant changes in terms of JournalofAsianResearchConsortium http://www.aijsh.org 79

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products and services that are being offered to Indian customers and consequently the complexion of the banking sector in India too underwent a none worthy change in the last decade. OBJECTIVES OF THE STUDY The following objectives of the study are To study the different services provided by the bank to the customers To examine the expectations and the level of satisfaction of the customers towards the services rendered by public and private sector banks To study the preferences and priorities towards types of services provide by the public and private sector banks To identify the areas which need improvement, so that the service of these banks in enhanced HYPOTHESIS OF THE STUDY There is no significant relationship between gender and overall satisfaction of the respondent There is no relationship between educational qualification and overall satisfaction of the respondents There is no significant relationship between annual income and overall satisfaction of the respondents METHODOLOGY AND RESEARCH DESIGN The methodology and design adopted for the study was as follows AREA OF STUDY The study has been conducted in Coimbatore city, which is one of the largest cities in Tamilnadu, having a population of more than fifteen lakhs. Coimbatore is known as the cotton city and number of tiny, small, medium and large industries and textile mills are located PERIOD OF THE STUDY The survey to know about the heading A study on consumer perception towards services of selected public and private sector banks lasted for the period of six months. DATA COLLECTION This study is based on questionnaire methods. Primary data were collected from men and women respondents living in Coimbatore city people from all walks of life were approached. The total number of respondents was 300. SAMPLING A sample of 300 customers has been selected for the using the convenient sampling method. The data has been tabulated and satisfactory interpreted whenever and wherever needed. JournalofAsianResearchConsortium http://www.aijsh.org 80

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FRAMEWORK OF ANALYSIS The statistical tests are conducted at 5% and 1% level of significant the following statistical tools are used. 1. SIMPLE PERCENTAGE ANALYSIS GENDER Gender normally plays a vital role as the new marketers are providing more significance to gender segmentation in offering new products and services. The Indian females are remaining their clutches from house responsibility to building up serious carriers. This new found economic independence enables them to take their own decision and make good use of various services provided by banks. They also need not run around investing their funds or paying their bills. Hence, it is inevitable to consider the role of gender in any research. For this purpose, gender has been classified into two groups, male and female. TABLE NO- 1 GENDER OF THE RESPONDENTS S.No 1 2 Gender Male Female Total Mean 1.99 2.31 2.16 SD .919 .849 .900 No of Respondents 160 140 300 Percentage 53.3 46.7 100 Simple percentage Analysis Descriptive Analysis Chi-square Test Garrett Ranking Techniques Reliability Analysis Factor Analysis Discriminate Analysis

It is clear from the above table 53.3% of the respondents is male with Mean and SD of 2.31 and .919 and 40% of the respondents are female with Mean and SD of 1.99 and 0.849. Majority of the respondents are male with the mean score of 2.31.

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II.CHI-SQUARE ANALYSIS

TABLE NO-2 ASSOCIATION BETWEEN GENDER AND OVERALL SATISFACTION ABOUT SERVICES Particular Pearson chi-square Likelihood ratio Linear by linear association No of valid case * Accepted ** Rejected It is clear that the p value is less than 0.05 chi-square value 34.285, at 2, p 0.000. p<0.05). The null hypothesis is rejected at 5% level of significance. Hence there is significant relationship between gender of the respondents and overall satisfaction about service and also statistical significant. TABLE NO-3 CROSS TABULATION BETWEEN AGE AND OVERALL SATISFACTION S.No 1 2 3 4 5 Age Overall Satisfaction Frequency High Medium Below 25 Frequency 51 30 years % 17.0 10.0 25-35 years Frequency 30 20 % 10.0 6.7 35-45 years Frequency 20 0.00 % 6.7 0.0 45-55 years Frequency 0.0 0.0 % 0.0 0.0 Above years Total 55 Frequency % Frequency % 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Low 30 10.0 30 10.0 49 16.3 20 6.7 20 6.7 149 49.7 Total 111 37.0 80 26.7 69 23.0 20 6.7 20 6.7 300 100 Value 34.285 35.764 9.839 300 Degree of Freedom 2 2 1 P-value .000** .000 .002

From the above table it is clear that 17.0 percent of the respondents with age group of below 25 years have high opinion, 10.00 percent of the respondents with the age group of 25-35 years have high opinion, 16.3 percent of the respondents with the age group of 35-45 years have JournalofAsianResearchConsortium http://www.aijsh.org 82

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low opinion, 6.7 of the respondents with the age group of 45-55 years have low opinion. 6.7 percent of the respondents the age groups of above 55 years have low opinions regarding the services provided by the bank. III. GARRETT RANKING TECHNIQUE This technique was used to rank the preference of the respondents on different aspects of the study. The order of merit given by the respondents was converted into ranks by using the following formula. Percentage Position = 100 (Rij-0.5)/ Nj Where Rij = Rank given for ith factor by jth individual Nj = Number of factors ranked by jth individual The percentage position of each rank thus obtained is converted into scores by referring to the table given by Henry E. Garret. Then for each factor the scores of individual respondents are added together and divided by the total number of respondents for whom the scores were added. These mean scores for all the factors were arranged in the descending order, ranks given and most important aspects identified. TABLE NO-4 REASONS BEHIND SELECTING THE BANK S.No 1 2 3 4 5 6 7 8 9 10 Factors Nearness Convenient Timing Friendly Staff Reputation of the Bank Prompt Service Canvassing by the bank Salary More loan facility Fully computerization Variety of other services Total Score 1798.2 1651.9 1559 1693.8 1558 1102 1411.5 1307.3 1757.2 1254.1 Mean Score 5.9 5.5 5.19 5.6 5.19 3.6 4.7 4.3 5.8 4.1 Rank I IV V III VI X VII VIII II IX

It is evident that most of the respondents gave top priority to nearness as the first rank for selecting the bank.

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IV. FACTOR ANALYSIS TABLE NO-5 LEVEL OF SATISFACTION REGARDING BEHAVIOUR OF BANK STAFF S.No 1 2 3 4 5 Statistics Regarding Behaviour of the Bank staff Friendly People Availability of Answer to Questions Explain things clearly & correctly Accuracy in completing transaction Knowledge of the employees Mean 3.96 3.66 3.86 3.83 3.66 Standard Deviation .982 .906 .962 .779 .747

KMO and Bartletts test- Level of Satisfaction regarding behaviour of bank staff TABLE NO-6 Kaiser Meyer Olkin Measure of Sampling Adequacy 0.646 Approx Chi-square Barletts Test of Sphericity Degree of Freedom Significant 3099.554 105 0.000

In the above table, two tests namely, Kaiser-Meyer-Olkin measure of sampling adequacy (KMO) and Bartletts test of sphericity or not. The Kaiser Meyer- Olkin measure of sampling adequacy shows the value of test statistics is 0.6446, which means the factor analysis for the selected variable is found to be appropriate or good to the data. Barletts test of sphericity is used to test whether the data are statistically significant or nor with the value of test statistics and the associated significance level. It shows that there exists a high relationship between variables. SUGGESTIONS To strive, to attract and retain customer the bank has to introduce innovative products, enhancing the customer services and marketing through different channels targeted at specific customer The bank management should have some policy the encouraging the customer Proper technical training to staff must be provided to handle crisis situation

CONCLUSION In the new environment the bank has to sell its product with a view to maximize the profit and to attract the customers with better services. It is imperative for the bank to have staff who JournalofAsianResearchConsortium http://www.aijsh.org 84

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relies that they were a part of the business concern to render services. The present study helps the banker to educate their customer by providing various services based on technological development to the satisfaction of their customer. By following the words of our great leader Mahatma Gandhi, Customer is a King. BIBLIOGRAPHY 1. R.K. Uppal, C.R.M in Indian Banking Industry, New Century Publications, New Delhi, Ed2008 2. Varshney Banking Theory law and practice sultan chand & Sons company ltd, New Delhi. 1997 JOURNALS 1. The journal of Banking Studies, Banker College, New Delhi, April 2004, P.22 2. The ICFAI journal of Marketing management, August 2006, Vol.V, No.3 3. Bank Quest- Journal of Indian Institute of Banking & Finance, Mumbai-5 July Sep 2004. P.59.

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