Table of Contents

Excutive Summary Interroduction Literature Review Objective of the study Significance of the study Identify Variables Research Hypothesis Resesearch Design Data Analysis Finding Recommendation Limitation of study Bibliography Questionnaire ...03 04 .05 .05 05 ..06 ..08 08 ..10 .12 ..12 13 .13 ..14

STUDY OF CUSTOMER SATISFACTION IN PUBLIC SECTOR AND PRIVATE SECTOR BANKS

EXCUTIVE SUMMARY

The working of the customer s mind is a mystery which is diffiult to solve and understanding oth nuances of what customer satisfaction is, a challenging task. This exercise in the context of the banking industry will give us an insight into the parameter of customer satisfaction and their measurment. In the oganised segment, banking system occupies an important place in nation s economy. It plays a pivootal role in the economic development of a country and forms the core of both Public sector as well as Private sector banks. There are total 28 public sector and 27 Private sector banks are functioning in the country presently. Banks have to deal with many customers everyday and render various types of services to its customer. It s a well known fact that no business can exist without customers. The banking industry in India has undergone sea change since post independence. More recently, liberalization, the opening up of the economy in the 90s and the Government s decision to privatize banks by reduction in state ownership culminated in the banking reform based on the recommendation of Narasimha Committee. The prime mover for banks today is profit, with clear indication from the Government to Perform or, Perish . Banks have also started realizing that business depends on client services and build relationship with customers. The main driver of this change is changing customer needs and expectations. The purpose of this is to compare the public sector bank & private sector bank in terms of customer satisfaction and to find out the various reasons of customer dissatisfaction in these banks. The data was collected by getting the questionnaire filled by the respondents who wew using banking services.

INTRODUCTION In the organised segment, banking system occupies an important place in nation s economy. It plays a pivotal role in the economic development of a country and forms the core of the money market in an advanced country. The commercial banks in India comprise of both Public sector as well as Private sector banks. Banks have to deal with many customers everyday and render various types of services to its customer. It s a well known fact that no business can exist without customers. Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business. Customer satisfaction is an ambigious and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and service to service. The state of satisfaction depends on a number of both pshchological and physical variables. The Banking Industry like many other financial services is facing a rapidly changing market, new technologies uncertainties, fierce competition and more demanding customers and the changing climate has present an unpreceedented set of challenges. Banking is a customer oriented services industry, therfore, the customer is the focus and customer services is the differentiating factors.

Literature Review
Consumer stisfaction is basically a psychological state, car taken in the should be taekn in the effort of quantiatatinve measurment, although a large quantity of research in this area has recently been developed work done by Berry (Bart Allen) and Brodeur between 1990 and 1998 defined ten Quality Values which influence satisfaction behaviour, further expanded by Berry in 2002 and known as the ten domains of satisfaciton. These ten domains of satisfaction include: Quality, value, Timeliness, Efficiency, Ease of Access, Enviroment, Inter-departmen Teamwork, Front line Service Behaviours, Commitment to the Customer and Innovation. These factors are emphasized for continuous improvement and organisational change measurement as an integral model. Another Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 provides the between the customer s expectation of performance and their perceived experiences of performance. This provide the measurer with a satisfaction Gap which is objective and quantitve in nature. Another work done by Cronin and Taylor propse the Confirmation/ Disconfermation theory of combinig the Gap described by Parasuraman, Zeithaml and Berry as two different measurement of performance according to expectation. According to Garbrand, customer satisfaction equals perception of performance divided by expectation of performance. So we can recognize where we need to make changes to create improvements and determine if these changes, after implemented, have led to increased customer satisfaction. If you cannot measure it, you cannot improve it. - Lord William Thomson Kelvin (1824-1907)

OBJECTIVE OF THE STUDY The objective of this study is to compare the public sector banks and private banks in terms of customer satisfaction and to find out the various reasons of customer dissatisfaction in these banks.

Significance of Study:Satisfied customer are central to optimal performance and financial returns. In many place in the world business organization have been elevating the role of the customer to that of a key stakeholder over the past 20 years. Customer are viewed as a group whose satisfaction with the enterprise must be uncorporated in strategic planning efforts. Forward-looking companies are finding value in directly measuring and tracking customer satisfaction(CS) as an important strategic success indicator. Evidence is mounting that placing a high priority on CS is critical to improved organisational performance in a global marketplace. With better understanding of customer s perception, companies can determine the actions required to meet the customer s needs. They can identify their own strengths and weaknesses, where they stand in comparison to their competiton, chart out path future progress and improvments in the work practices and processes used within the company.

Identify Varriabe
The meaning of satisfation: Satisfied has a range of meaning to individuals, but it generally seems to be a positive assessment of the services. The word ³satisfied´ itself had a no. of differnet meaning for respondents, which can be split into the broad themes of contentment/ happiness, relief, achieving aims and happy with outcome and the fact they did not encounter any hassle: Happy y y y y y y Content Happy, pretty happy, quite happy Pleased Walked out of there feeling good Walk out of there chuffed Grateful the service has been ok

Relieved y y y y y y y y y y y y Thanks God for that Phew At ease Can relax Stress reduction Secure Safe Go to the bank with troubled mind and they sort it out for you Sleep at night without worrying what s going to go on Everthing is sorted out in your mind and you re happy Secure, you know the money has been sarted out Knowing the money s going to be there

Achieving aims y y y y y y y y y Achieving your aims or goal Getting what you went in for Achieve whatever it is you wanted to achieve Come away wanted in the end Got what you wanted in the end Got what you went down for Everthing went according to plan, the way it should have done Met expectation To be unsatisfied is when you come out and you are still on the same level as you were before

Achieving aims, and happy with outcome y Happy with the results y Happy with what you ve got y When you walk out you re happy. They ve sorted everthing out and quickly y Happy with outcome y Pleased with what s happened y Content with what s been done for you y A feeling of happiness having achieved your goal y You go in there feeling down and the only way you are going to come out satisfied is if they have been good to you No hassle y y y y y y Not frustrated Everything goes smooth No hassle No problems No hassle getting there straightforward

Research Hypothesis:With the phenomenal increase in the country s population and the increased demand for banking services; speed, service, quality and customer satisfaction are going to be key differntiators for each bank s future success. The working of the customer s mind is a mystery which is difficult to solve and understanding the nuances of what customer satisfaction is, a challenging task. So this Hypothesis for recognize where we need to make changes to create improvement and determine if these changes, after implemented, have led to increased customer satisfaction. If you can not measure it, you can not improve it - Lord william Thomson Kelvin (1824-1907)

Research Design:

(i)scope of the study:
The scope of the study is confined in comparing th Public sector and Private sector banks in terms of customer satisfaction. The study will be undertaken on the basis of sample survey. (ii)Research Design: The Research Design would be descriptive and cross sectional. (iii)Sample size: The sample would be selected on random basis. A sample of _ _ (No.) respondents would be used in the reasearch. (iv)Data collection: The data would be collected from Primary source through questionnaires and interviews. (v)Data source: Both Secondary and Primary sources of data will be used. The major type of information used in primary data. This is done through primary survey. The literature review is a secondary data type. The sources include books, periodicals, websites, printed literature etc.

Data Analysis:
Public Sector Banks
VERY DISSAT MOBILE BANKING BRANCH BANKING INTERNET BANKING ATM BANKING DISSAT SATISFIED VERY SAT HIGHLY SATISFIED NOT USING SERVICES

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Private Sector Banks
VERY DISSAT MOBILE BANKING BRANCH BANKING INTERNET BANKING ATM BANKING DISSAT SATISFIED VERY SAT HIGHLY SATISFIED NOT USING SERVICES

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Conclusion:y _ _% of the customers are not using mobile banking in private sector banks whereas _ _% of the customers are not using the mobile in public sector banks. y _ _% of the customer of Private Banks are satisfied with the behaviour of the staff out of which _ _% are very satisfied and _ _% are highly satisfied. Whereas _ _% of the customers of Public Sector Banks are satisfied with the behaviour of the staff out of which _ _% are very satisfied. y _ _% of the customers are using internet banking in Private Sector banks and rest _ _% are not using because this service is not provided by their banks (e.g. any bank) whereas _ _% of the customers are using ATM banking in private sector banks out of which _ _% are stisfied and _ _% are highly satisfied. This shows a very high rate of customer satisfaction level in Private sector banks. y In Public sector banks _ _% of the customers are satisfied and _ _% are very satisfied with ATM banking whereas in Private sector banks _ _% of the customers are very satisfied and _ _% of the customers are highly satisfied with the service.

FINDINGS
Consumer satisfaction level is higher in Private sectors banks as compared with the Public Sector Banks. Reasons of Dissatisfaction in Public sector banks  Behaviour and attitude of the staff in Public Sector Banks is the first reason of customer dissatisfaction.  Time taken to process the transaction is the second reason of customer dissatisfaction.  Many of the services are not provided by the Public sector banks when compared with the Private sector banks e.g. ATM Banking is provided by (Any Banks)  Internet Banking and Mobile Banking is also not provided by many of the Public sector banks.  Continuous services are not provided by ATM machines installed by various Public sector banks.

RECOMMENDATIONS: 
The staff should be adequately trained to deal with the customer on one to one basis.  Many public sector banks need to revive their infrastructure to have pace with the competing environment.  Many of services need improvement in public sector banks e.g ATM facilities  Staff should be adequately trained to encourage face to face dealing.  Staff should be friendly and approachable.  Clearly defined customer policy should be adopted by the banks.  Customer s needs should be anticipated in advance so that they can be helped out in a better way.  Treat your customers like your friends and they ll always come back  Honour your promises.

LIMITATION OF THE STUDY y y y y This study is geographically resticted to _ _ _ city only. The sample size is small due to the specified reasons. Finding are based on sample survey through questionnaires method. Hence there is a scope for the respondents to be biased or, pretentious.

BIBLIOGRAPHY  C R Kothari- Research Methodology  P N Varshney- Banking law and Practice  Customer satisfaction in Indian banking: a case study of Yamuna Nagar District in Haryana  Political Economy Journal of India, Jan-June, 2008 by Raj Kumar  Customer satisfaction Key Growth to Banks: An article from the Hindu  Article on customer relationship management in Banking sector by Dr. F B Singh  Article on measuring customer satisfaction in the Banking Industry by Dr. Manoj Kumar Das INTERNET WEBSITE: www.google.com www.rbi.gov.in www.iba.org.in http://en.wikipedia.org/wiki/customer_satisfaction

QUESTIONNAIRE Dear Respondent, I am student of Banaras Hindu University (BHU) and doing M.Com-II sem. I have undertaken the project for which I intend to pose a questionnaire aimed at comparing the customer satisfaction in public sector bank and private sector banks. Your cooperation is deeply solicited to provide the relevent information. I assure that information will be kept confidential. Name of Customer_________________________ Mob. No._______________

Name of the bank and type of account___________________________________________________ Please answer the questions and tick at the place that matches your option. 1.Mobile/tele Banking How would describe your views about Customer Service Representative? Plese tick in the appropriate column. (1: Very Dissatisfied/ 2: Dissatisfied/ 2: Satisfied/ 4: Very Satisfied/ 5: Highly Satisfied), specify the reasone if not using the service 1 Call answering time Flawless/ Correct Operation Understanding and replyin queries correctly Communication skills/positive approach Genral assessment about the service 2 3 4 5

2.Branch Banking How would describe your views about Branch Banking? Plese tick in the appropriate column. (1: Very Dissatisfied/ 2: Dissatisfied/ 2: Satisfied/ 4: Very Satisfied/ 5: Highly Satisfied) 1 2 3 Behaviour of the staff Time taken to process the transaction Working Hours Genral asswssment about the sevices provided by the baranch

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5

3.Internet Banking How would describe your views about Internet Banking? Plese tick in the appropriate column. (1: Very Dissatisfied/ 2: Dissatisfied/ 2: Satisfied/ 4: Very Satisfied/ 5: Highly Satisfied) 1 Page Setup/ Menu Flow Ease of use/ Navigation Speed of page loading Variety of transactions Genral assessmenr about the service 2 3 4 5

4.ATM Banking How would describe your views about ATM Banking Services? Plese tick in the appropriate column. (1: Very Dissatisfied/ 2: Dissatisfied/ 2: Satisfied/ 4: Very Satisfied/ 5: Highly Satisfied) 1 ATM network distribution Continuous service Variety of transactions Easy of screen use Genral assessment about the service 2 3 4 5

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