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CUSTOMER SATISFACTION CRITERIA FOR CREDIT CARDS
IN THE PARTIAL FULFILLMENT OF REQUIREMENT FOR THE AWARD OF
BACHELOR OF BUSINESS ADMINISTRATION
ACADEMIC SESSION: 2003-2006
UNDER THE GUIDANCE OF: Mrs. Pankaj Bhardwaj Branch Manager HSBC BANK LTD., NEW DELHI
SUBMITTED BY: GAURAV BHAMA BBA-V SEM. ROLL NO.: 9357551
C-238, BULANDSHAHAR G.T. ROAD, LAL QUAN, P.B. NO. 57,
Institute of Management Studies
This Project Report has been prepared towards the partial fulfillment of Bachelor of Business Administration.
The present day managers of business concern function in a dynamic environment. In a world in which change is a suite & not an exception nothing is certain markets can’t relax once they have launched their product or service in market. In a dynamic world a business concern has the drive through a thick fog of in certifications & risk & a worng move may prove disastrous. It is here that a business managers beeds to thick what a customers thinks & exception from his product & how can customers exception can be translated into features & attributes of the product so that customer feels delighted. This project tries to drive into the minds of customers of credit cards & tries to know what they actually expect from a credit card service. This study is based on unskiasked respondents given by the so kind respondents.
I extent my gratitude to Mr. Pankaj Bhardwaj, Branch Manager Who has given an opportunity to undergo training in marketing department of HSBC Bank as a Trainee. I would like to convey my heartiest gratitude to Mr. Amit Gupta, Team Leader, Credit Card Sales Division, HSBC Bank under whose guidance this report could be prepared.
Finally, I would like to thank other countless people, who had helped me directly or indirectly, as they have been generous with their time, their support and encouragement.
Thank to all of you.
TABLE OF CONTENTS
1. Preface 2. Acknowledgement 3. Introduction • Introduction to Project • Profile of HSBC • Features and Benefits • Customer Satisfaction 4. Research Methodology 5. Data Analysis 6. Findings 7. Limitations 8. Conclusion 9. Recommendations 10. Appendix 11. Bibliography
INTRODUCTION TO THE PROJECT
Customer increasing expect higher quality & service & some customization. They perceive fewer real products differences and show and less brands loyalty. They can obtain extensive credit card information from the internet and other sources which permits them to shop more intelligently. When the buyer of credit card is satisfied after purchase depend of the performance of credit card in relation of buyer’s expectations in general satisfaction is a person feeling of pleasure or disappointment resulting from comparing a credit card performance in relation to his expectations. If it performance falls short of expectation, the customer is dissatisfied. If performance matches the expectations the customer is satisfied. If the performance exceeds expectations the customer is highly satisfied or delighted. The project which we have undertaken tries cover the main objective to find out customer satisfaction criteria for credit card. It also tried to cover following aspects. This will lead to certain implication for credit cards companies as to how they can formulates their future strategies in order to increase there sales. We have tried going in details and studying the purchase of credit card from different angles so, as to analyze the issue from 3600 . The research tries to
develop an understanding on the following aspects too. Which on the whole will help us in understanding the consumer behavior for a credit card in a holistic view. The general awareness level of credit cards. What are the advantages and disadvantages of credit cards. The consumer behavior in credit cards and decision making process. What are the uses of credit card. What are the things that a consumer needs to look for in a credit card before deciding to purchase it. What role does brand play. Other related issues.
INTRODUCTION TO VISA AND MASTER
VISA The story of VISA is inseparable from one of the most significant payment innovations of the twentieth century the payment card. By developed this tool of unprecedented flexibility and popularizing its use around the world. VISA shape the way that people everywhere live. The VISA card has helped bring possibilities and independence to millemium VISA era began in 1958, when the Bank of America first issued its blue, white and gold BankAmericard to customers in Califonia. Its bedrock concept of personal empowerment traces back much earlier. A.P. Giannini, founder of the Bank of America at the beginning of the century, belived that flexible personal credit could help ordinary men and women take control of together. The BankAmericard, a financial instrument established to drive positive social change, continued this legenacy of compassionate, customerfocused banking. With BanlAmericard international popularity in the 1960s and 1970s new corporate entity, jointly owned and a operated by license member institutions, was created to support them. The name “Visa” was introduced in 1976 and applied to the new organization. Soon Visa credit cards were spreading around the world.
Under the leadership of Dee Hock, Visa laid the groundwork for the success of its member financial institutions for decades to come. Hock oversaw the creation of the first-ever electronic system for handling credit transactions-an investment in transaction processing infrastructure which would lead to rapid growth and expansion. Throughout the 1980s and 1990s, Visa continued to make important strides forward, introducing the first premium credit card, creating the first global ATM network, developing new smart and prepaid cards and gaining market share around the world. Today, Visa proudly lives up to its heritage by focusing on empowering customers. Visa 21,000 member institutions have issued more than one billion cards and to its values remain firmly anchored in service, commitment and innovation. Visa is pioneering the creation of ccommerce, or universal commerce-the ability to conduct commerce anywhere, and way. In the real world and online, Visa is leading the global market with exciting new put on larger and grader and celebrations in an attempt to out-do each other.
“commerce technologies and capabilities that add convenience and each to its payment solutions” Jointly owned by more than 21,000 financial institutional around the global reach, Visa remains very much a local organization, giving its regional offices a high degree of operating and marketing autonomy, Because Visa’s regional organizations are closest to their local markets, they know best how to help member institutions serve their customers. Empowering member financial institutions-it’s the principle that underlines Visa’s success. Visa products and services-including credit, debit and prepaid, corporate, purchasing and business products-are offered directly by member financial institutionals to their customers. Visa international focuses on providing members with a strong competitive platform, including an advanced transactional processing infrastructure and global branding and marketing. But around a highly responsive and flexible regional structure, Visa International also leads new initivates in product development, global research and strategic alliances.
MASTER MasterCard International is a global payments company with one of the most recognized and respected brands in the world. We manager a full range of payment programs and service, including MasterCard® credit, MasterCards® debit cards, Maestro® online debit cards, Cirrus® ATM cash access, and related programs. With approximately 22,500 MasterCard, Cirrus and Maestro members worldwide, MasterCard serves consumers and businesses, both large and small, in 210 countries and territories. MasterCard is leader in quality and innovation, offering a wide range of payment solutions in the virtual and traditional worlds. MasterCard’s award-wining Priceless® advertising campaign is now seen in 98 countries and 46 languages, giving the MasterCard brand a truly global reach and scope. MasterCard is accepted at millions of locations around the global. MasterCard began in the 1940s when several U.S. banks started giving their customers specially-issued paper that could be used like cash in local stores. In 1951, The Franklin National Bank in New York formalized the practice by introducing the first real credit card.
Over the next decade, several franchises evolved where a single bank in each major city would accept cards as payment with certain merchants theyd chosen to work with. ON August 16,196, one of the these groups formed the interbank card Association (ICA), which later become MasterCArd International. Unlike other similar organizations, ICA was not dominated by a single bank Member committees were established to run the association. They established rules for authorization, clearing and settlement. They also handled marketing, security and global aspects of running the organization. Once the organization was well underway, it was time to expand globally. In 1968, ICA began what is now a huge global network by forming an association with Banco Nacinal in Maxico. Later that year , they formed an alliance in Europe with Eurocard and the first Japanese’s members joined . Many countries followed behind the early international members and by the late 1970s. ICA had members from as far as Africa and Australia. To reflect the commitement to international growth, ICA changed its name to MasterCard. In the 1980s, there was future expansion into Asia and Latin America. In 1987, MasterCard become the first payment card to be issued in the
People’s Republic of China. In 1988, the first MasterCard was issued in the Soviet Union. Today, there are over 37 MasterCard offices around the world with the global is accepted in more locations around the world than MasterCard.
DIFFERENT TYPES OF CARDS
CREDIT CARDS If you carry a balance, credit cards can be like expensive loans made by banks, gasoline companies and department stores. The credit card issuer gives you a card. You use the card to pay for items and services up to certain total amount-your credit “limit” The store merchant or services provider collects what you owe from the card issuer, whom you replay. You’re allowed to pay off what you owe little by little each month, as long as you pay a minimum amount each time. You’re charged interest on the balance you owe ( as high as 26% each year) at the end of each period, unless you pay the full balance each time your bull arrives. Credit cards yield profits to their issuers for several reasons. The most important is the high rate of interest-interest on credit cards alone accounts for the bulk of the profit earned by banks that issue credit card, and most companies charge late fees, overthe-time fees and other miscellaneous charges. Finally, the companies profit by charging merchants and service providers a fee each time a customer uses the company’s credit in the merchant’s establishment.
CHARGE CARDS Charge cards, also called travel and entertainment cards, are a little different from credit cards. Charge cards, such as American Express and Diners Club, have no credit limit. You can usually charge as much as want, but you are required to pay off your entire balance when your bill arrives, with one exception. It you charge air fare, cruise fees or hotels fees for a hotel room booked through a travel agent on an American Express card, you pay off your balance over 36 months. You’ll be charged between 19% and 21% interest and will have to make minimum monthly payments of $20, or 1/36 of your balance, whichever is greater. Charge card companies make their profits by charging very high annual fees- up to $100- and by charging merchants relatively high fees each time a customer pays using the company’s charge card. If you don’t pay your charge card bill in full, you’ll get a onemonth grace period, when no interest is charged. After that, you’ll be charged interest that averages about 18%. It you don’t pay after about months, three months, your account will be closed and your bill sent to the collections departments.
CASH ADVANCES Many people use their credit or charge cards to obtain cash advances, Cash advances are generally more expensive than standard credit card charges. Most banks charge a transaction fee up to 4% for taking a cash advance. They also charged interest from the date the cash advance is posted, even if you pay it back in full when your bill comes. Finally , the interest rate is often higher or cash advances than it is on ordinary credit card charges. ATM CARDS ATM cards are issued by banks essentially to give bank customers flexibility in their banking hours . in most areas, with an ATM card you can withdraw money, make deposit, transfer, money between accounts, find out your balance, get a cash advance and even make payments at all hours of the day or night. DEBIT CARDS Debit cards combine the functions of ATM cards and checks. Debit card area issued by banks but are used at stores, not at the banks themselves. When you pay with a debit card, the money is automatically deducted from your checking account. Many banks issue a combined ATM/Debit card that looks just
like a credit card and can be used in places where credit cards are accepted. But don’t be mistaken- they are not credit cards. The money you spend comes out of your checking account immediately. Many people prefer debit cards over checks for two reasons: • You do not have to carry checkbook and present identification, but are still able to make purchases directly from your checking account. • You pay your bills immediately, unlike when you use a credit card and get the bill later. But there are disadvantages to using debit cards. Many people prefer having 20-25 days to pay their credit card bills. Also, consumers using debit cards don’t have the right to withhold payment in the event of a dispute with the merchant over the goods or services paid for. In addition, many banks and merchants charge transaction fees for using debit card. Finally, if debit card number is stolen on the internet, the their may drain your bank account before the bank is able to complete its investigation. For this reason, it’s better to use credit , rather than debit, cards for online purchase.
CHEQUE GURANTEE CARD Used for identification purpose only. Not linked with credit or debit types. Allows the merchant to accept personal cheque payments without fear of dishonor. Some validation checks required e.g…, telephone authorization etc. STORE VALUE CARD Electronically processed card that stores monetary value Value can be stores on a chip or magnetic strip on the card. Typically used by public utilities where a large number of small value transactions can replace cash e.g…, MTNL Card, BEST Card. SMART CARD Has an implanted computer chip incorporated in the card plastic which gives it the power to perform many different functions like having a PC in your wallet! Multiple applications on the same card e.g.. credit, debit, electronic cash, driving licenses, secure identification hence you need to carry less cards in your wallet. Chip can record data or value or both and can store up to 80 times more information than a magnetic chip.
Terminal on which the card is used has a chip reader in addition to the magnetic stripe reader. CO-BRANDED CARD Banks enter each into partnership with a non-bank to market credit cards. Both parties are into the alliance for financial gain as the non bank partner is a profit-making company with a good customer base. The bank gains an additional customer base while the non-bank partner can offer credit cards to its members. A customized card for a specific retailer or service provider, such as shoppers Stop that wishes to solicits customers. The issuer looks after the card operations while the co-branded partner shared marketing costs and responsibility E.g. Citibank-Jet-Airways Card, HSBC-PNB card. AFFINITY CARDS To grow a portfolio , the bank enters into partnership with a nonbank to issue a card which may have a third party name on the face of the card If the non-bank partner is a non-profit organization , the card is known as an affinity card.
As credit card issued by a member in conjunction with an organization or collective group (e.g. a professional organization or special interest group) which is identified on the card. The issuer often pays the organization a royality per card or per transaction charged. e.g. Tollygunge Club card, Delhi Golf Club card.
PROFILE OF HSBC Introduction
HSBC has its Headquarters in London. HSBC Holdings plc is one of the largest banking and financial services organizations international 9,500 offices in in the 80 world. HSBC’s over and network comprises countries
territories in Europe, the Asia-Pacific region, the Americas, the Middle East, and Africa. With listings on the London, Hong Kong, New York and Paris stock exchanges, around 190,000 shareholders in some 100 countries and territories hold shares in HSBC Holdings plc. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts. Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment, banking, and markets; private banking; and other activities.
HSBC IN INDIA
HSBC's origin in India dates back to 1853, when the Mercantile Bank of India was established in Mumbai. The bank has since, steadily grown in reach and service offerings, keeping pace with the evolving banking and financial needs of its customers. The acquisition in 1959 by The Hongkong and Shanghai Banking Corporation Limited of the Mercantile Bank was a decisive factor in laying the foundation for today's HSBC Group. Founded in 1865 to serve the needs of the merchants of the China coast and finance the growing trade between China, Europe, and the United States, HSBC has been an international bank from its earliest days. After the Mercantile Bank was acquired by The Hongkong and Shanghai Banking Corporation, the Flora Fountain building became and remains to this day, the Head Office of the HSBC Group in India. Through the 1990s, HSBC has vigorously developed its role as one of the leading banking and financial services organizations in the world. Its strategy of 'managing for value' emphasizes the Group's unique balance of business and earnings between older, mature economies and faster-growing emerging markets.
HSBC in India is proud to have retained the Group's pioneering streak by being an active partner in the development of the Indian banking industry - even giving India its first ATM way back in 1987. The organization’s adaptability, resilience, and commitment to its customers have further enabled it to survive through clients as also to a fast growing personal banking customer turbulent times and prosper through good times over the past 150 years. In India, the Bank offers a comprehensive suite of worldclass products and services to its corporate and commercial banking base. HSBC Group entities in India 1. The Hongkong and Shanghai Banking Corporation Limited (HSBC) 2. HSBC Asset Management (India) Private Limited 3. HSBC Electronic Data Processing (India) Private Limited 4. HSBC Insurance Services (India) Private Limited
5. HSBC Securities and Capital Markets (India) Private Limited 6. HSBC Primary Dealership (India) Private Limited 7. HSBC Private Equity Management (Mauritius) Limited 8. HSBC Software Development (India) Private Limited Products /services offered by HSBC 1. Credit Card a. HSBC Gold Card b. HSBC Classic Card 2. Loans a. Home Loans b. Personal Loans c. Educational Loans d. Professional Loans 3. Account a. Savings Account b. Fixed Account c. Demat Account d. Smart Money Account e. Current Account i. Business Select
ii. Business Vantage iii. Business Account 4. Insurance a. Personal Insurance i. Life Insurance ii. Home Insurance iii. Hospital Cash Insurance iv. Car Insurance v. Personal Account Insurance b. Business Insurance 5. Wealth Management a. HSBC Premier b. Power Vantage c. Financial Planning Service d. Business Select e. Mutual Fund 6. NRI Services a. Non Residents b. Returning Non Residents 7. Corporate and Institutional Banking a. Corporate Banking b. Treasury and Capital Market c. Institutional Banking d. Equities, Corporate Finance And Advisory
e. Payment and Cash Management i. Payment ii. Collections iii. Account Management iv. Electronic Banking Hexagon f. Trade And Factoring Services i. Trade Services ii. Factoring Services iii. Precious Metals iv. Custody And Clearing Technology Used HSBC's global network is linked by advanced technology, including a rapidly growing e-commerce capability. Contribution to Society HSBC employees lend a helping hand in India The helping hand staff volunteer programme was launched in Mumbai in 2001 and has since then has extended to Ahmedabad, Bangalore, Hydrabad and Pune, putting volunteers in touch with NGO's and charities that need a helping hand.
HELPING HANDS MELA Over 50 charities and NGO's take advantage of HSBC's annual exhibition (mela) to display their work and raise money through the sale of their products.
FEATURES AND BENEFITS
1. Wide acceptability The card will be accepted at over 18 million establishment across the world in addition to 1,00,000 establishment in India. 2. Standard Fees The annual fees for Gold and Classic Cards are given below : Gold Card Jointly Fees Annual Fee Add-on 500 2000 1000 Classic Card 300 700 350
Cardholders will get rewarded just for using their HSBC Globally valid card for every Rs. 100 charged to the card holders receive 1 reward point. These paoints can be accumulated for the year and then redeemed against card renewal fees, gits vouchers and card upgrade fees. A minimum of 250 points has to be accumulated in order to start redeeming. 4. Global ATM Services Cardholders have access to cash, round the clock, at over 6,00,000 ATMs Worldwide, which include VISA/MasterCard/Cirrus and all HSBC ATM’s Classic cardholders can withdraw up to Rs. 25,000 per day and Gold Card holders can withdraw up to Rs. 50,000 per day within the overall specified limit.
5. Finance Charges You can get up to 48 days free credit without any finance charge being levied to your credit card account provided your credit card outstanding shows in your statement is settled in full on the due date. Finance charges will be
applicable, if only part payment is made, at 2.95% on a average daily balance basis from the date of statement.
6. Travel Privileges Cardholders can get a discount of 30% on basis domestic airfares and 5% on basis international airfares when they purchase their air tickets through credit card from International Travel House (ITH). In addition ITH will deliver the tickets free of charge within city limits.
7. Insurance Benefits Our package of insurance benefits for gold cardholders is amongst the best in the industry.
Accident Insurance: Cardholders are entitled to free insurance cover of Rs. 15,00,000 for a Classic card in the event of loss of lives due to an air accident. For loss of life due to other accidents the cover is Rs. 4,00,000 and Rs. 1,50,000 for Gold and Classic cards respectively.
Purchase Protection: All items bought using the card are insured against damage or loss due to fire or theft for a 180-day period up to a value of Rs. 50,000 for a Gold Card and Rs. 30,000 in case of a Classic Card.
Zero Lost Card Liability :In case a cardholder loses her/his card bank in writing. her/his will not be liable for any charges incurred on the card after the loss has been reported to the
Credit Shield: In the event of Accidental death, payment of outstanding on the card is waived up to Rs. 40,000 for Gold cardholders and Rs. 20,000 for Classic cardholders.
Lost Baggage Insurance: Cardholders are covered for loss/theft of checked baggage during domestic and international flights for up to US$1,200 for Gold cardholders and up to Rs. US$600 for Classic cardholders. This cover is applicable after 48 hours of arrival at your destination.
Enhanced Travel Insurance Benefits for GOLD CARD holders :•
Delay in checked baggage : Gold cardholders are covered for US$ 300 in the even of checked baggage being delayed for more than 6 hours during domestic or
international flights from the scheduled arrival time at the destination
Hijack Protection : IN the event of your flight getting hijacked, Gold Cardholders can claim US$250 per hours every that the flights is hijacked. This cover is applicable post 12 hours of hijacked up to a maximum of 36 hours
8. Global Calling Card Cardholders will get a free calling card from Global One. Which enables them to make long distance calls while traveling overseas at every competitive rates. These calls are billed to the cardholder’s credit account and are payable in Indian rupees.
9. Zero Petrol Surcharge Cardholders are entitled to a reimbursement of petrol surcharge that is normally levied at any petrol pump at any city in India. on credit card fuel purchases for amounts between Rs. 400 to Rs. 2500 incurred
Features Worldwide accepted
Advantages • Accepted at all outlets worldwide (18 Million establishments) • No need to carry cash while shopping in India or abroad.
Benefits • Convenience • Low Risk
Free Credit Period
• Pay only 5% of the amount roll over the credit • Make only minimum payments & can avail the credit facility.
• Flexibility of payment
Global ATM Services
• Withdraw cash on CC (40% of the total Cr. Limit sub. To availability). • Up to Rs. 50,000/per day
• Easy access to funds. • Easy liquidity.
• No need to have bank a/c & can still withdraw cash in case of emergency. Access to your bank a/c with your credit card (ATMC) • At ATMs in India, you can request statements, cheque books, perform banking operations. • No need to have 2 different cards & 2 different pins. Bonus Rewards Programme • For every Rs, 10/purchase you get 1 reward point which has value of Re. 1/-. • After accumulating 250 bonus points, the same can be redeemed against card renewal fees and quality items. Insurance * in the event of loss baggage or theft, • Safety • Saves money
Privileges a. Lost baggage b. Accident Insurance
insurance covered up to US$ 1200
• Free Insurance
• In case of death due to ait accident, insurance cover up to 20 lacs & in case of death due to other accident, insurance cover upto 2 lacs • There is waiver of payment of o/s on the card up to Rs. 40k
• Protection • Safety • Free Insurance
C. Purchase Protection
• If the items purchased during CC, is danaged or lost due to theft or fire, insurance cover available up to value of Rs. 50k. • Claim can be made within 180 days period from date of purchase.
• Safety • Minimum loss
D. Zero Lost Card Liability
• In case of card loss & reporting the same immediately to the bank will prevent any misuse of card • GCH are covered up to US$300 for emergency purchase of replacement items.
• Protection against misuse • Security
E. Travel Insurance: • Delay in checked baggage
• Convenient • Saves Money
• Loss of passport & travel documents
• C/h reimbursed up to US$ 500 for expenses incurred in btaining alternate documents in case of loss of original documents
• Saves Money • Convenient
• Airline tickets can
• Saves Money
be booked using CC at Spl. Dscount of 3.5% on basic domestic air fares & 6.5% on basic intal, air fares. • The rickets will be delivered to door step without any extra charges. GLOBAL ONE Calling card • Free of charge • Amount billed on CC which reflects in monthly statement • Amount billed in INR which saves on foreign exchange. • Can make long distance cals from any telephone booth while traveling overseas. • Calls can be made even without
• Easy access to telephones. • Convenience
cash. ADD-ON-CARDS • Primary card holder can apply for up to 3 add-oncards (only blood relations) • No joining fees • No documentation required • Add-on cards also enjoy the same benefits as primary card CARD RENTAL SERVICES • GCH can avail spl. Car rental services & exclusive discounts @ 20% on basic rates, extra hours & Extra kms. ( Auto riders Rent-a-car) • Normal bill payments can be made using this facility • Convenient • Saves Time • Saves Time • Saves Hassles
DRAFT ON CALL
• Convenient • Saves time
• Drafts can be ordered against CC over the phone & the same will be delivered to the doorstep. EMERGENCY ASSISTANCE SERVICES • GCH receive global assistance 24 hours a day & 7 days a week. • Assistance is available by pacing collect call to respective centers. • The assistance services also include legal, medical, travel & other services. • Global assistance • Toll free numbers • Confidence • Quick service.
CUSTOMER VALUE & SATISFACTION
Over 38 years ago, peter drucker deserved that a company first task is “to create customer”. However, customer face a vast array of product and brand choices, prices, and suppliers. How do they make their choices we believe that customers estimate which offer will delivers the most value customers are value maximizes, within the bound of search costs and limited knowledge, mobility, and income they form an expectation of value and act on it. Whether or not the offer lives up to the value expectation offer both satisfaction and repurchase probability.
Our premise is that customer will buy from the firm that they see as offering the highest precision value.
Today’s companies are facing their toughest competitors ever. Therefore companies need to more rapidly into new economy and employ internet, wireless and other technologies to competitor advantage. Here is big question that how companies can go about wailing customers and out performing competitors. The answer lies in doing a better job of meeting or exceeding customer expectations be coz this is costumer centered era. “John chambers , CEO of Cisco systems put it will “Make your customer the center of your culture” companies are adept at building customers, not just product, they are skilled in market engineering, not just product engineering. achieve a
TOTAL CUSTOMER SATISFACTION
Whether the buyer is satisfied after purchase depends on the offer’s performance in relation to the buyer expectations. In general, satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or out come) in relation to his or her expectations. If the performance falls short of expectations the customer is dissatisfied. If the performance matches the expectations, the customer is satisfied. It the performance exceeds expectations the customer highly, satisfied or delighted.
Although the customer centered firm seeks to create high customer satisfaction, that is not main goal. If the company increases customer satisfaction by lowering its price or increasing its services, the result may be lower profits. The company might be able to increase its profitability by means other than increased satisfaction for example by improving manufacturing process or investing more in R&D) ultimately, the company must operate on the philosophy that it is trying to deliver a high level of customer satisfaction subject to adverting acceptable levels of satisfaction to the other stake holder given its total resources. When customers rate their satisfaction with an element of the company’s performance say, delivery the company need to recognize that customers vary in how they define good delivery. It could mean early delivery, on time delivery, order completeness and so on. Yet if the company had to spell out every element in detail, customer would face a huge survey questionnaire. The company must also realize that two customers can report being
“highly satisfied” for different reasons one may be early satisfied most of the time and the other might be hard to please but was pleased on this accession. Cleans formal has developed the American customer satisfaction index (ACSI) to measure the perceived satisfaction consumers feel with different firms, industries, economic sector and national economics.
1. Nature of research –Descriptive 2. Research approach- Sample survey 3. SAMPLE SIZE – 100 No. 4. Method of research –Questionnaire 5. Research Instrument-Random Sampling 6. Findings 7. Suggestions
Research methodology is a way to systematically solve the research problem. It my be understood as a science of studying how research is done systematically & scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. Researcher also need to understand the assumptions underlying various techniques they need to know the criteria by which they can decide that certain techniques & procedures will be applicable to the certain problems and other will not. The scope of research methodology is wider than that of research method. Thus when we talk of research methodology we will not only talk of the research method but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or techniques and why we are not using others so that the research result are capable of being either by researcher himself or others. Why a research study undertaken, how the research problem has been undertaken, how the research problem has been define, in what way and why the hypothesis has been formulated. What data have been collected
and what particular method has been adopted why particular techniques of data collections has been used and a host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study. In research methodology, research process, research design, sampling design method of data collection are used in this project.
Research process consist of action or steps necessary for effective carry out research and the desired of this steps1.
Formulating the Research problem- The best way of understanding the problem is to discuss it with ones own colleagues or with those having some expertise in the matter.
Extensive Literature Survey- After formulating the problem a brief summery of its should be written down. At this function research should undertake extensive literature survey concerned with the problem.
Development of working hypothesis- After extensive literature survey, researcher should state in clear terms the working hypothesis.
Preparing the research design- The research problem has bee formulated in clear cut terms. The researcher will be required to prepare a research design. Basically there are three types of research design. - Exploratory research design.
- Descriptive research design. - Hypothesis testing design.
Determining the sample designs- All the items under consideration in any field of inquiry constitute a universe or population. There are two types of sampling method are used to design sample. - Random sampling - Non random sampling
A research design is the arrangement of conditions for collection and analysis in a manner that aims to combine relevance to research purpose in economy in procedure.
In this research project descriptive research design are designed. Because descriptive research studies are those studies which are concerned which describing the characteristics of particular individual or a group.
And it is used as- Formulating the objective of the studies. - Designing the methods of data collective - Selecting the sample - Collecting the data - Processing and analyzing the data - Reporting the finding
To prepare sampling design we should follow these points. 1. Type of universe 2. Sampling unit 3. Source list 4. Size of the sample 5. Parameters of interest 6. Budgetary constraint 7. Sampling procedure
METHOD OF SAMPLING DESIGN
Sampling designs are basically of two types:1. Random sampling 2. Non-Random sampling Random Sample: Random Sampling method is any method of sampling that utilize some type of random selection is the most important type of sampling. A ransom sample allows a known probability to each unit when being selected. Such sampling is very commonly used in lotteries and raffles. For ransom selection the researcher has to assure that the different units in the population have equal probability of getting selected. For this now a days one uses computer for generating random number for random sampling. Non –Random Sapling : This type of sampling does not include any basis for estimating the probability of including units of population in the sample. The units of population are selected deliberately assumed to adequately present the population.
METHOD OF DATA COLLECTION
In this research project simple questionnaire method are used. Questionnaire method is that method where a questionnaire is give to the person which is concerned with the topic and request to fill up this questionnaire. A questionnaire consist of a number of questions printed in a definite order on a form. ADVANTAGE OF QUESTIONNAIRE METHOD 1. There is low cost when the universe is large and is widely spread geo graphically. 2. It is free from the bias of interviewer. 3. Large sample can be made use of and thus the 4. Respondent has adequate time to give well thought answers.
You think promise made by credit card company are fulfilled. Strongly agree Somewhat agree Neither agree - nor disagree Somewhat disagree Strongly disagree 4 8 33 48 7
0 Strongly agree Somew hat agree Neither agree - nor disagree Somew hat disagree Strongly disagree
You like to recommend your credit card to other Strongly agree Somewhat agree Neither agree-nor disagree Somewhat disagree Strongly disagree 14 16 20 39 11
25 20 16 15 14 11 10
0 Strongly agree Somewhat agree Neither agree - nor Somewhat disagree disagree Strongly disagree
You feel taking credit card was a good discussion Strongly agree Somewhat agree Neither agree-Nor disagree Somewhat disagree Strongly disagree 13 26 27 24 10
26 27 24
Stronglyagree Somew agree hat Neither agree - nor disagree Somew disagree hat Stronglydisagree
Which factors influenced you most to buy credit card Price Presentation of sales man Free credit period Teachers Insurance cover Cash withdrawal Add on card Reference group Any other 11 13 7 6 18 11 7 20 7
20 18 16 14 12 10 8 6 4 2 0 Price Free credit period 7 11 13
Add on card
From where did you come to know about your credit card Salesman TV Newspaper Bill board Reference group Any other 36 11 9 8 28 8
28 30 25 20 15 10 5 0 Salesman TV New spaper Bill board Reference group Any other 11
Would you like to switch over to another company’s credit card Yes 47 No 53
Do you feel services provided by credit card are according to your expectations? Yes 23 No 77
Do you thick interest rate charged by credit card companies is reasonable? Yes 6 No 94
After taking credit card is there any increase in your expenditure? Yes 73 No 27
Do you feel credit card industry is a sinking boat in Indian context Yes 61 No 39
1. Most of the answer our indicate towards disagreement, it clearly shows customers thick that premises made by credit card comprises are not fulfilled; there why filled premises may be like difficulty in claming insurance or free services. 2. Customers are unsatisfied with credit card services so they spread negative word of much when they are asked that is why 50% of customers don’t want to recommend their credit cards to others. 3. This answer is spread evenly oven somewhat agree, neither agree nor disagree somewhat disagree. People who some what agree because credit card is necessity for them as they have to travel a lot & credit card provides them security & people who somewhat diagram are because credit card didn’t meet their expectation. 4. As we can see friends or the existing users of credit card significantly influenced. The purchase of credit card which indicate. That it is the most creditable source of information insurance policies are also major attraction for the customer & presentation 7 the way in which salesman convince the customers also plays important.
5. The awareness about the credit card is through salesman, so salesman are the front and employee who play an important role in making perception of credit cards friends and colleagues also help in creating brand awareness. 6. Customers are almost evenly divided over this question which shows that them is no major product differentiation in the credit card and customer perceive that all of the them are similar. 7. Clearly, the services of credit cards have not met the expectations of customers 8. the interest changed by credit card companies amount to 36% per annum which in very high customers are aware of this fact & almost all of them expressed this displeasure. 9. Credit card have led to increase in the expenditure of people, People who have answered no, have not used credit cards even once. 10.Almost two third of people feel that due to debit cards & other facilities days of credit cards are going to be over.
Despite the possible efforts in concluding the research, they were some unavoidable situations, which limited the scope of the project. • The study was restricted to Delhi, Noida & Ghaziabad. • Time was the biggest constraint as all questionnaires were to be filled in person to actual views, but all efforts were made to get information relevant to the research. • There may be some disepecies in views as some, people might give false information in questionnaire, as they might not be in filling the form. • The sample size of 100 is small so there may be difference in the reality and the findings.
During our project we got an opportunity to study the credit card industry of India. It is a relatively new business with intense competition & each firm trying to capture each others market share. It was a great learning experience & we concluded following points: 1. Credit card industry is still in a nascent phase in India with an underdeveloped infrastructure. 2. Acceptability of credit cards is limited to large cities having malls, big retail stores 3. The penetration of credit cards is limited to large cities i.e. credit card companies don’t have many customers in tier II & tier III cities. 4. The companies are indulging in aggressive marketing; they are not really concerned in satisfying the customer’s need. 5. There is no major product differentiation in the various credit cards; all of them are providing similar services. 6. The companies are not trying to retain the customers; they are more interested in broadening the customer base. At last we conclude that CreditCard is at declining phase in India.
(1)Company should advertisement through various things i.e advertisement through print media electronic media and distribution network. (2)As we have seen in the study persons are must affected by price & quality factor. The company should concentrate over the price factor of the program so that new customer could be attracted to wards the program although quality factor of the program is satisfactory. (3)The company must conducted the satisfaction survey
time to time so that company could know the satisfaction level of the consumer. It will be more beneficial to company in making new strategies & policies. (4)Most of the person, which participated in the survey have said that the program should be divided in to small packages. So that any one could buy it easily.
(5) The company price should be kept low in comparison to competitors product price so that company can earn more profit by selling large volume. (6) The company’s awareness is low, the company should be more concentrate to increase the awareness of the company. The company can use many marketing total to perform this work. (7)The company should be conducted the demo of program complaint, policies & suggestion. It can improved it market share and consumer satisfaction.
1. You think promise made by credit card company are fulfilled. a. Strongly agree b. Somewhat agree c. Neither agree - nor disagree d. Somewhat disagree e. Strongly disagree 2. You like to recommend your credit card to other a. Strongly agree b. Somewhat agree c. Neither agree-nor disagree d. Somewhat disagree e. Strongly disagree 3. You feel taking credit card was a good discussion a. Strongly agree b. Somewhat agree c. Neither agree-Nor disagree d. Somewhat disagree e. Strongly disagree 4. Which factors influenced you most to buy credit card a. Price b. Presentation of sales man c. Free credit period d. Teachers
e. Insurance cover f. Cash withdrawal g. Add on card h. Reference group i. Any other 5. From where did you come to know about your credit card a. Salesman b. TV c. Newspaper d. Bill board e. Reference group f. Any other 6. Would you like to switch over to another company’s credit card Yes your expectations? Yes reasonable? Yes expenditure? Yes 10. context Yes No No Do you feel credit card industry is a sinking boat in Indian No 9. After taking credit card is there any increase in your No 8. Do you thick interest rate charged by credit card companies is No 7. Do you feel services provided by credit card are according to
2. 3. 4.
Book by Philip Kotler on Marketing Management A book on Marketing Research by Luck & Rubin
A book on Marketing of Service by Vallarie A. Zeithaml & Mary Joe Bitner. 5. Training Material presided by HSBC. 6. www.indianinfoline.com
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