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IOSR Journal of Business and Management (IOSRJBM) ISSN: 2278-487X Volume 1, Issue 5 (July-Aug.

2012), PP 01-05

Customer Satisfaction: A Comparison of Public and Private Banks Of
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Waqar ul Haq 2Bakhtiar Muhammad

ShaheedZulfikar Ali Bhutto Institute of Science and Technology, Islamabad Professor, Shaheed Zulfikar Ali Bhutto Institute of Science and Technology, Islamabad

Abstract: The purpose of conducting this research is to compare public and private sector banks of Pakistan by
evaluating their customer satisfaction. This research is mainly based on primary data which has been collected through a well-structured questionnaire (adapted from three different studies). The questionnaire has been distributed to 351 different respondents on different chosen locations. This paper makes a useful contribution as there are very low number of studies has been conducted in Pakistan on such areas like price, technology, reliability, customer service, location and infrastructure. This research shows that customer satisfaction varies from person to person and, bank managers need to conduct more researches in order to evaluate customer satisfaction more strongly. Keywords: Customer satisfaction, customer services, technology, reliability



1.1 Customer Satisfaction: is a measure of how products and services provide by any organization meet the expectations of a customer. It varies from person to person and service to service. A customer can be defined as a user or potential user of banking services. A customer would include an account holder, or a person carrying out casual business transactions with a bank. The efficiency of a banking sector depends upon how best it can deliver services to its target customers. In order to survive in this competitive environment and provide continual customer satisfaction, the banking services providers are required to frequently increase the quality of services. In banking business it is seen that only 5% increase in customer retention can extend 35% profitability.


Literature Review

Entrance of Technology Private sector Banks seem to have satisfied its customers with good services and they have been successful in retaining their customers by providing better facilities than Public sector Banks. But, still Private Banks need to go a long way to become customer‟s first preference. In an economy of innovative technologies and changing markets, each and every service quality variable has become important. New financial products and services have to be continuously introduced in order to stay competent and Private Banks need to concentrate more on their credit facilities and insurance services since customers do not have a very good opinion about these facilities being offered by Private Banks also Public sector banks enjoy the trust of the customers, which they have been leveraging to stay in the race however they need to improve their service quality by improving their physical facility, infrastructure and giving proper soft skill trainings to their employees(Puja et, al). In the banking sector it is necessary to increased adoption of technology to better meet customer requirements, improve efficiencies, reduce costs and ensure customer delight and it was the private sector and foreign banks which established the technological revolution in Indian banking and considering the fact that in the new economy, mind share leads to market share and mind share is influenced not only by the promotions and advertisements but more importantly on favorable customer perception which in turn is based on satisfaction with regard to products, services and interaction (B. K. Tiwary). The private sector banks are providing more satisfied ATM services then public sector banks and the customer perception about Productivity, Security and Sensitivity, Cost Efficiency, Problem Handling, Compensation and Contact services related to ATM service is very less in both the public sector and privates sector banks, Therefore both kinds of banks should be aware about these facets of ATM service to improve customers‟ satisfaction (Vijay M. Kumbhar). The entry of information technology into the banking industry has created a revolution and it has prompted commercial banks of India to design world-class customer service systems and practices, to meet the growing customer needs. It is interesting to note that the results are consistent with the previous studies conducted on customer service aspects, and it has been observed that the foreign and the new generation private sector banks are serving the customers better (Rengasamy et, al). 1 | Page

Customer Satisfaction: A Comparison of Public and Private Banks of Pakistan
2.2 Customers Perceptions and Expectations Quality expectation and the valuation of services received are slightlymore in the private sector banks as compared with the public sector banks. The effects for tactic since sectorial differentiation become veryblurry as a result of increasing correspondence between services and struggle from linked and additional industries (Peter et, al). Service quality is one of main elements of customer satisfaction and their intention to purchase. However, the customers of public and private sector banks different in terms of their perception of service quality. Private Banks have been observed to be higher on dimensions of service quality: effectiveness and convenient while, the nationalized banks are better on the dimensions of price and consistency (Sachinet, al). Private bank customers are more satisfied with the services then public banks. Managers in the banking sector undertake significant efforts to conduct customer satisfaction surveys and it is appears that customers are saying that they expect good products and quality to their banks and that may the only thing important to them (Muhammad Naveed). 2.3 Image and Reputation of Banks Some publicly owned banks are scoring well among customers but overall analysis shows that satisfaction rate in customers of private banks is much higher than public sector banks and people will continue the mortgage with private banks then public because they're impressed by the level of honesty of private banks (Colin Beasty). 2.4 Performance of Banks After the privatizations of state-owned banks, their performances in comparison with other banking groups have increased by 95%. The performance of private banks after privatization of state banks had significant reduces and this reduction indicates that the share of the market of newly privatized state-owned banks increased. Although the performance of privatized state banks after privatization has increased significantly (Khodaei et, al). The economic reforms and the entry of private players have cause nationalized banks to revamp their services and product portfolios to incorporate new, innovative customer-centric schemes. Nowadays, due to the rise in competition, customer satisfaction is considered to be the most important thing in retail services but there is no noteworthy difference in customer satisfaction of public sector and the private sector banks (Vigget, al). 2.5 Price and Packages Cheque deposits and cheque clearing are most common services used by customers, the charges levied by the bank on these services are higher in private and foreign banks then in nationalized banks. Their study also shows that the customers of public banks were not much satisfied with the behavior of employee and infrastructure, while customers of private and foreign banks were not much satisfied with high charges, approachability and communication. They have also suggested that training on stress management and public dealing should be imparted to the employees of nationalized banks and nationalized banks need to improve their infrastructure and ambience to compete with private and foreign banks in India (Surabhiet, al). Credit cards have become a part of life. In recent years there was a lot of demand has been shown for credit cards and there is a lot of scope for credit cards business in India. The credit cardholders consider eleven 'very important' variables which "Satisfied" them are: Joining Fee, Annual fee, Minimum payment due, Cash withdrawal possibility, Availability of ATMs, Life Insurance Cover, Card replacement fee, Air insurance, Baggage cover, lost card liability-after losing the card and lost card liability-before losing the card (Chennappa, D; Eliat, M.J). 2.6 Location and Infrastructure Good sites and suitable site of the branch are essential for bank branches for smooth operation of banking business. When the private banks were compared with public banks, all the private banks have excellent locations from business point of view compared to public banks in India and for providing better service to customers proper training should be given to the staff by the banks also public sector banks should invest and concentrate more on staff development where as private sector gives more priority on infrastructural aspects. The rigid policy of public banks creates more dissatisfaction among the customers while for private banks mostly the value of service is the key factor of satisfaction (Uma et, al). 2.7 Quality of Customer Services First dimension of customer satisfaction for nationalized banks is Service Orientation but, for private banks Service orientation appeared as second dimension and they focuses more on customer satisfaction and nationalized banks give more importance to Flexibility in Use of Services, Vision and Competency. Also customers of nationalized banks had not been given much importance by the executives. On the other hand 2 | Page

Customer Satisfaction: A Comparison of Public and Private Banks of Pakistan
customers of private banks had been offered these services right from the beginning therefore, customers of private banks more satisfied (Jitendra Kumar Mishra). The consumers of nationalized banks are more satisfied with service quality, than private banks and it‟s required to ascertain the key success aspects in the industry, in terms of satisfaction of customers by keeping in view the growing market size and the strong competition (Pooja Mengi). The Private Banks came to existence within the last ten years with the objective of to limit the government intervention in banks and from since then they try hard to obtain customer satisfaction even after a short period of existence. According to a survey the result shows that private sector banks are more popular to obtain customer satisfaction than the public sector banks (Farzad Asgarian). Satisfaction of customers is the most important forecaster of service quality of banking sector. Management of banks should confirm that the banking atmosphere should focus on quick and fair services to their customers. Public sector banks are contributing more credit facility to fishermen and farmers than private banks and the State Government announcement of giving the agricultural loan has given more satisfaction to the consumers of public banks (N. Senthi kumar et, al). The effort towards ease of banking and accessibility is preferred by the customer who is more seen in private banks then public and customer care and customer retention programs should take into consideration by public banks. In Kuwait Muslim customers are satisfied more with accessibility of ATM machines in multiple locations, funds safety, ease to use ATM machines and service quality provided, but the worse element which has been noticed in this study was that the interest rate on loans, which was the indicator of that the most of customer in Kuwait give more intention to loans (Khaled et, al). Service quality is an important feature of customer satisfaction in Indian banking industry irrespective of public sector and the private sector banks and Customer satisfaction is found to be strongly associated with propensity to recommend (Monica Bedi) . Some of the respondents choose the SBI bank is because the bank is proving more ATM facility to the customers and many of the respondents are saying the reason to choose the services of the SBI bank is because they are good in efficient customer service but many of the respondents are not aware of the many services Provided by the SBI bank. The few are deposit of cash in ATM, request for cheque book in ATM, end of the day balance in mobile, etc. While some of the respondents choose the ICICI bank is because the bank is more reliable to the customers and many of the respondents are saying the reason to choose the services of the ICICI bank is because they are good in efficient customer service and efficient complaint handling. So finally both the banks are competing equally with each other but SBI bank is little bit below the line in customer complaints handling when compared to ICICI bank (M.J. Vidhyaa).


Research Framework

A research framework has been developed to compare customer satisfaction among private and public sector banks of Pakistan which includes research methodology, research model and questionnaire. 3.1 Methodology A method has been designed to meet the objectives of research. For this purpose a questionnaire has been adapted from three different research studies [1.Salman Khalid et al (2011), 2.Uma Shankar et, al (2010) and 3.Khaled Al-Hashash et, al (2008)] and circulated in 5 different cities of Pakistan (Sukkur, Lahore, Islamabad, Rawalpindi and Peshawar). This questionnaire consists of two different parts. The first part is showing respondents personal data such as gender, bank type, income, age, qualification and the second part asked respondent to rate their satisfaction level to their bank from “strongly agree” to “strongly disagree” on such variables which lead to build strong relationship with customers such as prices, reliability, technology, customer service, location and infrastructure etc. This questionnaire was given to 500 different respondents out of which 351 questionnaires were returned. Most of these responses were conducted myself and rest through the help of friends and family.

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Customer Satisfaction: A Comparison of Public and Private Banks of Pakistan
3.2 Research Model

Customer Satisfaction



4.1 Background of Respondents The first part of this questionnaire was designed to collect personal information of respondents such as their gender, Age, bank type, income and qualification and the investigation shows that 65% of the respondents are male and 35% are female of which, 42% of the respondents are having their account in public banks and 58% have their account in private banks. 72.6% respondents are from age group 18 – 25 years, 16.9% are from age group 26 – 33 years, 5.7% are from age group 34 – 41 years, 1.7% is from age group 42 – 50 years and 3.1% are from age group 51+ years. In terms of qualification only 0.6% are under matric, 1.6% have done matric, 4.4% respondents have done intermediate, 76.2% are graduated and 17% respondents are post graduated. In income segment 26% of the respondents having less than 20 thousand, 11.8% have 21 – 30 thousand, 18.5% earn 31 – 50 thousand, 33.5% earn 51 – 100K and only 10.2% of the respondents earn more than 100 thousand per month. 4.2 Questions My bank gives me good compensation. Services charges my bank imposes is competitive. My bank gives good interest rate on saving accounts. My bank provides variety of service charges. My bank provides good credit facilities. My bank doesn‟t charge unnecessarily for not maintaining minimum balance in account. My bank provides ATM service in multiple locations. My bank provides good E-Banking service. My bank provides Phone account service facilities. My bank provides Internet banking service. My bank provides safety for my funds. My bank‟s image and reputation is good. I have open account in this bank because for personal relationship with any of the employee. Location of my bank is convenient. N 349 350 349 350 346 346 350 348 346 351 349 344 350 348 Minimum 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Maximum 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Mean 1.8195 2.0514 2.1519 2.2000 2.2659 2.3642 1.8971 2.1810 2.1821 2.1368 1.9484 2.1686 2.2486 2.0460 Mean Std. Deviation of Each Question Std. Deviation 1.10592 .93188 1.06262 1.07325 1.19120 1.19917 1.05480 1.05415 1.12357 1.14072 1.00440 1.11473 1.25921 1.14543 4 | Page

Customer Satisfaction: A Comparison of Public and Private Banks of Pakistan
My bank has multiple branches in Pakistan. My bank provides good parking space facility. Infrastructure of my bank is attractive and friendliness. My bank staff attitude is friendliness. My bank staff gives prompt attention to my needs. My bank staff understands my needs. My bank staff handles my problems efficiently. My bank provides me a good customer service. My overall opinion about my bank is good. I am satisfied with my bank. I will not switch to any other bank. 347 347 351 350 345 347 350 347 348 345 348 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 2.0259 2.1326 2.2393 2.0543 2.0812 2.1729 2.2000 2.1441 2.1810 2.1710 2.3247 1.09751 1.19718 1.19511 1.07587 .98496 1.06660 1.13552 1.09491 1.12810 1.08493 1.14170



Above analysis shows that customer satisfaction vary according to the nature of the services and in this case, highest customer satisfaction is shown in such areas like price charged by banks is nominal, convenient location of bank branches and staff attitude toward problem solving of customers. When the private sector banks are compared with public sector banks, private bank customers were more satisfied with their bank because of their multiple branches at convenient locations and technology (like check deposit machines, utility bill accepting machines etc.) which were not even seen in public sector banks. But when we talk about public sector banks customers of public sector banks were more satisfied with reputation, reliability and the prices which public sector banks impose on services like cheque/cash deposit and cheque/cash withdraw (it has been shown that price charges are lower in public sector banks than in private sector). When we compare both types of banks in terms of customer care service, private sector banks are favored more than public sector banks. Although overall both public and private sector bank customers are satisfied with their banks but due to wide difference of response, both public and private sector banks should concentrate on their weak areas in order to meet their customer expectations and this study provides sort of guidelines to managers of banks to take suitable decisions to get more satisfied responses from their customers.

VI. Limitations of the Study Four limitations have been observed during this research. First, the research only focuses on public and private banks, other banks like Foreign and Micro financial institutions that also plays good role in Pakistani banking industry, has not been included in this research. Second, a limited number of cities were covered in this research (Sukkur, Lahore, Islamabad, Rawalpindi and Peshawar only). Third, the sample size and actual respondent numbers were limited because of limited time period. Finally, permission to carry out study inside and outside banks has not been given so I had to reach respondents individually which has consumed a lot of time as well. VII.


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Under this plan. II. These goals are :  Help more than one billion people to improve their health and well being. as well as many companies of the globe. Issue 5 (July-Aug. PP 06-08 www.  Environment impact of their products should reduce to half of current status. A Milestone in FMCG Industry: The46 billion FMCG giant HUL was formed in 1933 as Lever Brothers India 6 | Page . To develop the society. This un-certainty ponders marketers to design their marketing planning in a more systematic ways. and came into being in 1956 as Hindustan Lever Ltd. Social Marketing I. HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as soaps.iosrjournals. Current Progress Report on Sustainability: Unilever is on track in sustainable sourcing and livelihoods. frequent change of his needs and comfortable zone of shopping. 2010 at London. but unable to reduce the environmental impact. where company plans to launch many eco-friendly products which save mother earth as well as protect consumer from any hazards. A better and sustainable earth is also the concern for Rotterdam. Introduction: AMA defined Marketing as “Transfer of goods and services from producers/manufacturer to ultimate consumers. companies should take every precaution and necessary steps to protect the interest of the consumers as well as safeguard the consumer’s priorities. trees etc for further processing of their products. This paper focus on several steps initiated by HUL for their forthcoming as well as current products.  Outsource 100% of their agricultural raw materials sustainability. HUL. Market and society are the two sides of a single coin. 2012). marketers have a greater role of sustainability. HUL distribute its products through 2 million retail outlets across the country directly and products are available in over 7.IOSR Journal of Business and Management (IOSRJBM) ISSN: 2278-487X Volume 1. and United Traders Ltd. Consumer. New York and New Delhi simultaneously. minerals. Company is currently focusing on seven major areas. Keywords: Sustainability. As per AC Nielsen market research data.” Social Marketing is the integration of Marketing Philosophy with changing nature of society. who are using resources of earth like water.2 million outlets in the country. two out of three Indians use HUL products. While manufacturing new product for the consumer group. Unilever Sustainable Living Plan (USPL) : Unilever launched sustainable living plan in on 15th of November. Abstract: Growing consumer and increasing income growing of consumer opens many avenues for modern marketers to serve consumers. The revised definition of marketing as AMA stated is: Marketing is → Creating (New Products Development. Hindustan Vanaspati Mfg. tea. The modified version of recently AMA definition on marketing somehow indicates towards the above issues. quick solution for his problems. through a merger of Lever brothers.iosrjournals. Unilever aims to achieve few goals by 2020. Social Marketing: A Classic Case of Sustainability Model by Hindustan Unilever Ltd. These areas are :  Health and Hygiene  Nutrition  Waste foot print  Water foot print  Green house gases www. where sustainability is required. HUL. Today consumer needs more comfort. Market.) → Communicating (Promotional Mix) → Supplying (SCM) ↓ → Maintaining CRM with Consumers In this process maintaining relationship with consumer play a pivotal role where company keeps every social change in the society into consideration while initiating any new plan of marketing. detergents and shampoos.

In 7 | Page . V. company‟s in-home water purifier. Company also committed to reduce saturated facts. as it is framed under the goal of company. In Pakistan. By 2020. Unilever has been gradually reducing salt levels in its products without changing its taste. Sachets play an important role in making everyday product affordable and accessible to low income consumers. Under food programme. Health and Hygiene : According to UN estimates. where consumers are educated and informed about the practice of waste segregation.  Sustainable sourcing  Better livelihoods III. Africa and Latin America by promoting the benefits of hand washing at key times. Bangladesh and Indonesia. In India. Nutrition: High level of obesity is now a concern for urban India where consumers are living more sedentary lives and calorie rich foods are more available and affordable. this brand aims to change the hygiene behaviour of 1 billion consumers across Asia. For Ex: Company is planning to launch a dry shampoo that does not need water in a far easier way to reducing water consumption in the bathroom than pleading with them to use less water. company providing micronutrient – enriched school meals to 95. absorbs oil from hair and also lends volume. particularly in those countries where the infrastructure for recycling is poor. consumers were encouraged to bring empty plastic bottles and pouches of any brand from selected FMCG categories. As company is the firm believer of sustainability. “Khushiyon ka Doli” (Caravan of Happiness) is company‟s Lifebuoy brand promotional activities in rural India where it is reaching to 30 million rural consumers directly. where used plastic sachets can be converted to fuel.Social Marketing: A Classic Case Of Sustainability Model By Hindustan Unilever Ltd. HUL has garnered immense learning from its years of experience in conducting the Lifebuoy hand washing programme. Also introduces a leave on hair conditioner that doesn‟t need to be washed away. By 2020. hence it has joined hands with Bharti Retail to implement a programme called „go recycle‟. It protects the products and allows company to transport them safely from manufacturing base to consumer end. Company is committing to halve the water associated with the consumer use of its products by 2020. Lifebuoy soap consumption has increased by 8%. The aim is to reduce the level of salt up to the mark of 5 gm per day as based on globally dietary guidelines. doing away with the need for hot water at 70° Celsius in washing machines.. HUL‟s major toothpastes also play an important role helping to prevent tooth decay which is one of the world‟s most common diseases and can lead to more serious health conditions. company is planning to motivate around 100 million people to take its „Heart Age‟ test for better and healthier lifestyle. Also Pureit. Company already introduced comfort one Ringe in Vietnam that reduces the use of water from their buckets to one.000 school children of India. But recycling sachets really a challenging issue due to its low weight. The dry shampoo is spray on. VI. Waste Foot Print: Packaging is one of the important Ps defined by Marketing Scientists. Lifebuoy is one among them. Trans fat and calories from their different products to uplift consumers‟ healthy eating habits. the consumers were given discounts coupons for redemption. HUL. company will reduce the weight of packaging that what currently it is using by a third through light weighting materials. energy and transport. Water shortages are increasingly common and water available per head or population will reduce further in the coming decade. At the same time it can end up as waste. Many Unilever brands offer hygiene benefits. in its “Nutrition enhancement Programme” plans to improve the nutritional quality. as predicated by UN. As a part or this programme. The simple practice of brushing twice a day can make a big difference to oral health. www. Company also eliminating PVC (Polyvinyl Chloride) from all its packaging by 2012. Water foot print: Water is a basic human need. Also a detergent that clean at room temperatures. The Madhya Pradesh Govt. over 2 billion people have limited access to safe drinking water. IV. Millions of the people around the globe remain hungry or lack of essential nutrients in their diets. So company is reducing the packaging and saving the materials. Company is planning to provide consumers with refills for their home and personal care products to make it possible to reuse the primary pack. provide water „as safe as boiled‟ without needing electricity and at an affordable price to India‟s middle class consumers. The United Nations estimates that each person needs 20-50 liters per day for drinking and daily tasks like cooking and washing.iosrjournals. By 2015. impressed by the fact that the incidence of diarrhea has dipped by 25% in a recent study. But Unilever introduce a technology called “Breakthrough Pyrolysis Process”. Sachets and pouches are an efficient use of packaging creating less waste by weight per milliliter of product sold than bottles.

preserving food 8 | Page . Currently 30. By www. Sustainable Sources: Half of Unilever‟s raw materials come from either farms or forests. VIII. Changing weather patterns put the suppliers of agriculture raw materials in mess. Climate change will have a growing impact on Unilever‟s business.000 to 75. has put out a list of clean wants. Reference :     www. Unilever‟s master brand Lipton tea bags will source from Rainforest Alliance certified estates by 2015. By 2020. Agriculture and forestry are the largest contributors to global greenhouse gas emissions and are the major drivers of climate change. and finally twisting the consumer behavior through its nobly created sustainable HUL Bets on innovations to Reach Sustainable goal. reduction of salt in food products.Social Marketing: A Classic Case Of Sustainability Model By Hindustan Unilever fighting viruses. These factors are also helping company to increase its goodwill and support the sales volume target. transport and refrigeration all the way through to consumer use of the products. X. 25th April 2012 www. Any social initiatives must be verified and weighted according to the consumer‟s perception and Unilever perfectly did the same by keeping its ideas fit to the shoes of consumer‟s mentality. It will increase the numbers or Shakti Ammas from 45. So company is planning to set greenhouse gas reduction targets across the valve chainfrom for soy beans target set is 2014 and for soy oil by 2020. Co2 emissions from global logistics network will be below the level of target set for 2010. Also it plans to improve the Energy efficiency of its warehouses. Company will purchase 100%. HUL is also partnering with a leading public sector bank in India for enabling banking service to rural consumers and low income people is Shakti villages.wikipedia. Truck transportation may replace with rail or ship to reduce Co2. To strengthen the project. company will purchase all palm oil from certified sustainable sourcing. Rapeseed oil and diary will be sourced by the company by 2020. Sustainable sunflower oil. The Economics Time. storing renewable energy. as well as directly to consumers. sustainable showering. Greenhouse Gases: By 2020 company is committing to halve the greenhouse gas impact of its products.000 Shaktimaans are working across www.000 in 2015. VII. So Unilever is committed to sourcing sustainably all agricultural raw materials by 2020.iosrjournals. So company is persuading consumers to take shorter showers.unilever. Better Livelihood: Company plans to help small holder farmers and Micro-entrepreneurs under project Shakti. HUL is also entered into a partnership on telecom distribution with a leading telecom company to sell its products and servicing across rural India. Sustainable fruits and vegetables by 2015.all focused on sustainability. as in the USLP. Conclusion : Unilever. manufacturing. Company introduced the concept of “Shaktimaan” under which men of Shakti families are given bicycle to cover surrounding villages to increase HUL‟s distribution and sales as well as enhance the income of Shakti families. IX. Most of the greenhouse gas emissions are come from the hot water needed to use company‟s soaps and shampoos in the shower. This initiative will help Shakti entrepreneurs to increase their income by selling telecom products and services to retailers.

Implementation of total quality in the service industry is comparatively more complex and difficult due to the fact that quality of services cannot be defined objectively. Customers are becoming more aware of their requirements. Determining and meeting customer expectation regarding services is the key to make satisfied customers and the best way for determining customers‟ needs and expectation is the use of surveys and researches. This story is just a comical representation of a customer‟s dissatisfactory reaction resulted from a service failure of a 9 | Page . would you mind trying to find someone to help me in the safe deposit area?" she asked. 2012).org An Empirical Study of Servqual as a Tool for Service Quality Measurement Sabrina Tazreen Lecturer. The difference between the expectation and perception rating constitutes a qualified measure of service quality. SERVQUAL surveys usually include 22 service areas distributed throughout the five service quality dimensions. Introduction: A woman walked up to the branch manager of a bank." "In that case. Their expectations and perceptions are continually evolving making it more difficult for the service providers to measure and manage services effectively and efficiently. Additionally. transport. Service industries cover a wide range of differentiated organizations such as health care. The use of SERVQUAL seems to be most effective in financial services. "Are you hiring any help?" she asked.the key vehicle for understanding customer expectations and perceptions of services. This paper attempts to highlight the implication of SERVQUAL.IOSR Journal of Business and Management (IOSRJBM) ISSN: 2278-487X Volume 1. (Marketing) Faculty of Business reflecting the level of service they would expect from excellent companies in a given sector and the other reflecting their perception of the service delivered by a specific company within a sector. reliability. Still. banking. the scope of SERVQUAL survey is limited to some particular sectors. etc. Issue 5 (July-Aug.iosrjournals. service industry by nature has less control over factors which affect quality. Robinson. "No. assurance and empathy. SERVQUAL method is more or less suitable for most of the service sectors. one of the widely accepted methods for measuring service quality. PP 09-19 www. Such systems involve a very large variety of business processes and a large scale interaction with variety of customers." he said. 1996. education. SERVQUAL (an acronym derived from the term „Service Quality‟) is a well tested survey method for measuring service quality which focuses on five service quality dimensions. health care and education sector. insurance. I. The survey often asks the customers to provide two different ratings on each attribute. The paper concludes with some recommendations regarding further research topics related to service quality measurement. These distinctions enabled Parasuranam. As such services are more akin to performances rather than objects. Measuring service quality had always been a challenge for service providers because of the intangible and most notably the inseparable and heterogeneous nature of service. hotels. This paper attempts to focus the implication of SERVQUAL scale for measuring service quality in terms of the differences between the customer expectations and their perceptions regarding the service consumed. The term Customer Satisfaction has become the prime concern of most of the organizations to be competitive in the industry. which has subsequently dominated both academic and practitioner perspectives (Buttle. SERVQUAL. Zeithmal & Berry (1985) to develop an instrument for measuring Service quality. "We already have all the staff we need. Abstract: To survive and excel in today’s competitive market organizations must realize the significance of customer-oriented business philosophies and quality management approaches in managing the business. responsiveness. SERVQUAL measures perceptions of service quality across five dimensions: tangibles. This www.1999). Very few methods are considered to be effective measurement tools for services so far while a number of methods have been introduced and practiced for measuring the quality of physical goods. restaurant. University of Science and Technology Chittagong. The SERVQUAL methodology is briefly demonstrated by a small survey conducted on a randomly selected bunch of customers regarding the service quality provided by a particular commercial bank.

Lewis and Booms (1983) concluded that satisfaction was similar to attitude. Service quality can thus be defined as the difference between customer expectations of service and perceived service. II. Lewis and Mitchell. and security were combined to form one of the new elements known as assurance... and empathy. Wisniewski and Donnelly. Caring and individualized attention that the firm provides to its customers. courtesy. the ten elements developed for use in measuring service quality were tangibles. reliability. Bitner and others. Those elements known as competence. responsiveness. In an attempt to address the issue of how to measure service quality. credibility. et al (1976) recognized importance of selection as a priority for obtaining and retaining customers. Zeithaml. Originally. Three of the original ten elements—tangibles. They were the first researchers to see the significance of attitude as a principal factor leading to superior service quality. communications. Cronin. Willingness to help customers and provide prompt service. courtesy. then perceived quality is less than satisfactory and hence customer dissatisfaction occurs (Parasuraman et al. Jr. and Taylor. responsiveness. The questionnaire was made shorter by selecting 16 questions from among the 22 structured questions.iosrjournals. et al based upon a series of focus group interviews. Dabholkar. The earliest concern for what has become to be known as service quality appeared in 1976. 1994a. assurance. There are a number of different "definitions" as to what is meant by service quality. The other seven original elements were combined into two elements. equipment and appearance of personnel. Dotchin and Oakland. Now. Further studies by Parasuraman. Knowledge and courtesy of employees and their ability to inspire trust and confidence. communications. and the elements of access. the five elements that made up what the authors called SERVQUAL were the following five dimensions of service quality: tangibles. 1996).org 10 | Page . 1985. and understanding the customer were combined to form the new element known as empathy. Ability to perform the promised service dependably and accurately. 2001). Table: 1: Dimensions of Service Quality www. credibility. reliability. Some of those are Holbrook and Corfman. 1996. However the study of service quality did not come into its own as an area of marketing importance until research in the early 1980s established that attitude was a significant part of service quality. The factors covered by the dimensions are given in the following table: Table 1 Dimensions Tangibles Reliability Responsiveness Assurance Empathy Factors Physical facilities. Asubonteng et al. One that is commonly used defines service quality as the extent to which a service meets customers‟ needs or expectations (Lewis and Mitchell. Anderson. which could be used to measure service quality perceptions. access. The bank has been termed as Bank X (hypothetical name). Service quality is a concept that has aroused considerable interest and debate in the research literature because of the difficulties in both defining it and measuring it with no overall consensus emerging on either (Wisniewski. competence. and responsiveness—remained unchanged. A number of scholars have conducted services quality researches and opined in different ways about service quality. and consequently they noted the significance of processes and outcomes in defining service quality. 1990. 1990). Defining Service and Service Quality Measurement: Thus. a scale based upon the utilization of ten elements was developed by Parasuraman. If expectations are greater than performance. The sample size includes only forty customers because of the time and cost constraints. et al (1988) brought about a major modification that changed the dimensions that could be used to measure service quality perceptions. reliability. One year after this significant research.An Empirical Study of Servqual as a Tool for Service Quality Measurement paper attempts to demonstrate the methodology of SERVQUAL by a survey conducted on the customers of a local commercial bank regarding the retailing banking services provided by the bank. In fact the survey only exhibits the implication and methodology of SERVQUAL in a service industry. and understanding the customer. Maynes. Churchill and Suprenant (1982) were among the earliest to hold the view later shared by others that service quality was an attitude. security.

A seven point Likert scale is used to get the level of expectation and perception associated with each service quality criterion.An Empirical Study of Servqual as a Tool for Service Quality Measurement •Tangibles: Tangibles would include those attributes pertaining to physical items such as equipment. The degree to which the customer feels the empathy will cause the customer to either accept or reject the service encounter. Individual attention and convenient operating hours were the two primary elements included by Parasuraman. et al. et al. and security in the original ten dimensions for evaluating service quality (Zeithaml. Walker (1995) found that if there is an adequate delivery of the basic level of service. buildings. 1988). Assurance replaces 11 | Page . et al (1991) include such elements in responsiveness as telling the customer the exact time frame within which services will be performed. Tangible was one of the original dimensions that were not modified by Zeithaml. www. The instrument‟s design causes it to be best suited for use as a diagnostic methodology utilized for determining large areas of service quality strengths and weaknesses. courtesy. sixteen statements were selected from the structured SERVQUAL questionnaire format and then modified to make it precise and best suitable for banking sector. Numerous researchers. In banking studies by Anderson. and never too busy to respond to customer requests. Parasuraman.iosrjournals. and the appearance of both personnel and the devices utilized to communicate to the consumer. 1988). The questionnaire representing customer expectation focuses on the word „should‟ to state the level of expectation regarding each criterion. Parasuraman. One set of questions asks the customers to indicate the extent to which the bank‟s services should possess the features described by each statement. Reliability was one of the original dimensions not modified by Zeithaml. III. With the research by Bitner (1990). Parasuraman. Methodology Of SERVQUAL Survey For Measuring The Gap Between Customer Expectation And Their Perception Regarding The Service Provided By Bank X: A small survey has been conducted on the customers of „Bank X‟. Negative wording in the request for a customer response caused the customer to misinterpret this particular determinant. Two sets of questionnaires were prepared including sixteen identical statements. •Responsiveness: The desire and willingness to assist customers and deliver prompt service makes up the dimension of responsiveness. To evaluate the five service quality dimensions. it was determined that a substantial level of trust in the bank and its abilities was necessary to make the consumer comfortable enough to establish a banking relationship. credibility. •Empathy: Empathy is the caring and personalized attention the organization provides its customers. After conducting the survey all the questionnaires were collected for tabulation and analysis. •Assurance: Knowledgeable and courteous employees who inspire confidence and trust from their customers establish assurance. locally serving for more than one decade to represent the way to conduct SERVQUAL survey. et al (1988). •Reliability: Reliability relates to the personnel‟s ability to deliver the service in a dependable and accurate manner. Bitner (1992) presented her conceptual framework for examining the impact of physical surroundings as it related to both customers and employees. it was noted that physical appearance might influence the consumer‟s level of satisfaction. Berry and Clark (1991) provided validation of the physical appearance on the consumer‟s assessment of quality. It was also determined by Parasuraman. Empathy replaces access. promptness of service. The number of questions was squeezed because of the convenience of collecting responses from the customers who were less willing to answer so many questions. and understanding the customer in the original ten dimensions for evaluating service quality (Zeithaml. claiming a lack of reliability even though they recognized SERVQUAL and all of its dimensions as the best known. et al (1991) that the conversion of negative wording to positive wording as suggested by Babakus and Boller (1991) and Carman (1990) increased the accuracy of this dimension. et al (1988). Responsiveness was also one of the original dimensions not modified by Zeithaml. et al (1991) in their evaluation of empathy. including Garvin (1987) found that reliability tends to always show up in the evaluation of service. et al (1976). Bahia and Nantel (2000) disregarded responsiveness in their research. communication. The other set asks about their views regarding the extent to which they believe Bank X has the features and benefits described by the statement. then peripheral performance leads consumers to evaluate the service encounter as satisfactory. willingness to be of assistance. et al (1991) included actions by employees such as always courteous behavior instills confidence and knowledge as prime elements of assurance. most universally accepted scale to measure perceived service quality. et al (1988) indicated that reliability normally is the most important attribute consumers seek in the area of quality service. et al (1988).

The filled up questionnaires were scanned to discard unwanted or insincere responses. The retail customers have been chosen to conduct the survey as corporate clients are treated to be the most valued ones and they usually get separate concentration and best services. the customers of Bank X are categorized into two major groups: Corporate customers and Retail customers. the retails customers are more likely to provide the most accurate response regarding the service.iosrjournals.An Empirical Study of Servqual as a Tool for Service Quality Measurement Target sample: Generally. The data analysis was conducted using SPSS. Moreover they are difficult to access. Table: 2 The 16 statements used for collecting responses: www. 12 | Page . Sample size: The research sample consists of 40 customers of different branches of Bank X Data Analysis: For the analysis of the collected data a primary or rough analysis was conducted to validate the questionnaire for gathering the adequate information.

iosrjournals. Statement Table: 4 www. The following table represents the calculation of the difference between the scores of Questionnaire 1 and 2.An Empirical Study of Servqual as a Tool for Service Quality Measurement Table 3: To make the calculation clear let’s consider any one statement from the 13 | Page .

implying expectations www.0. with minor modification. IV. SERVQUAL can be adapted to any service organization.72 -2.525 . if gap scores in some aspects of service do turn out to be positive.iosrjournals.61 Table 5 represents the average gap score between customer expectation and perception.075 . The charts of details analysis have been attached with the appendices.825 -0.07 -0.05 -1.1 -0.225 .175 -1.775 -0. The average gap score for all the service quality dimensions of Bank X are showing negative figure where the highest gap scores were for responsiveness. Equally. Service Quality Dimensions Mean Difference of each statement Mean difference for each SQ Dimension Tangibles Statement 1 Statement 2 Statement 3 Statement 4 Reliability Statement 5 Statement 6 Statement 7 Statement 8 Responsiveness Statement 9 Statement 10 Statement 11 Assurance Statement 12 Statement 13 Statement 14 Empathy Statement 15 Statement 16 -0.An Empirical Study of Servqual as a Tool for Service Quality Measurement Table 5: The following table shows the average gap between customer expectation and their perception regarding various service features of Bank X.85 -0. combined with assessment of where expectations are highest.61 -0.55 -0.525 .125 -1. Scope of SERVQUAL survey The concept of measuring the difference between expectations and perceptions in the form of the SERVQUAL gap score proved very useful for assessing levels of service quality. The rest four dimensions show comparatively smaller gap that represents lesser customer dissatisfaction regarding the services. facilitates prioritization of performance improvement. The largest negative 14 | Page .925 -0.775 -1.325 -0. Information on service quality gaps can help managers diagnose where performance improvement can best be targeted. Parasuraman argued that.0.0725 - 0.

VI.L. Zeithaml . Teas (1994) noted that SERVQUAL expectations have been variously defined as desires. 1994b). Please circle one number for each statement www. [9].iosrjournals. (1999). and vector attribute (Teas. Any information you provide will be kept strictly confidential. and Berry. 64. When measuring the quality of accounting firms.An Empirical Study of Servqual as a Tool for Service Quality Measurement are actually not just being met but exceeded. reveals some deficits of attributebased quality measurement (like SERVQUAL). Despite Parasuraman et al. Instruction: Please indicate the extent to which the services provided by Bank X should possess the features described by each statement. A Service Quality Audit: An Application of the Gap Analysis Model. Parasuraman.     Recommendation For Further Studies/ Researches Regarding Measuring Service Quality: Use of SERVQUAL scale in GAP Analysis model of measuring Service Quality: From the perspective of specific service sector/ organization Use of some contemporary models to measure service quality.. it is generally agreed that this is not the case. then this allows managers to review whether they may be "oversupplying" this particular feature of the service and whether there is potential for re-deployment of resources into features which are underperforming. http://en. Freeman and Dart (1993) conclude that service quality is a seven-dimensional construct.. 1994).org 15 | Page . (1993).A. Mary Jo Bitner (1990). 19(1). Parasuraman et al. Service quality: an empirical study of expectations versus perceptions in the delivery of financial services in community banks. a customer of a bank asked to evaluate the friendliness of customer contact employees of a bank is forced to tick a single point on a scale even if he/she had contacts with three employees whose behavior and friendliness differed considerably. New York. Berry (1985).. “A Conceptual Model of Service Quality in its Implications for Future Research. T. what a service provider should possess. Parasuraman. Irwin McGraw Hill. Zeithaml. (University of Alberta. and the level of service a customer hopes to receive. J. [5].html [8].wikipedia. Paul R. Peter.12manage. These multiple definitions and corresponding operationalizations of “expectations” in the SERVQUAL literature result in a concept that is loosely defined and open to multiple interpretations (Teas. These various interpretations can result in potentially serious measurement validity problems. G. Bexley. and that the number and definition of the dimensions varies depending on the context. December 2005 [2]. the data collected by these methods cannot completely reflect the customer's quality perception. Appendix Customers’ Questionnaire (Expectation) Dear Respondents. 655-662. 41-50. Second. wants. A. A. (1988): SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. a measure of attribute importance. V. Limitations of SERVQUAL Survey There have been a number of studies that doubt the validity of the 5 dimensions and of the uniform applicability of the method for all service sectors. classic ideal point. J. For and Leonard L. This survey is completely voluntary. Journal of Consumer [10]. V.. 1993. (Like SERVPERF for Education service) Development of a conceptual framework to measure the web-based service quality using the SERVQUAL model.. the respondents are forced to aggregate their quality experiences in a problematic way. Journal of Retailing. http://findarticles. L. Your full participation would greatly help the cause of the study.. Modification of SERVQUAL scale References: [1]. 1990 [7]. desired service. Services Marketing. Valarie A. Messinger. & Brown. According to Stauss & Weinlich (1997). however. a closer look. A. normative expectations. Churchill.” Journal of Marketing. Zeithaml. Caution in the use of difference scores in consumer research. [4]. P. Valarie A. ideal standards. [6]. First. 49 (Fall). Different interpretations of “expectations” include a forecast or prediction. [3]. Robinson and Pidd (1998) propose 19 dimensions of service quality in the context of management science projects. University of Stirling. James B.'s (1988) initial claim that their five service quality dimensions are generic. 41-50..

iosrjournals. This survey is completely voluntary. Instruction: Please indicate the extent to which you believe Bank X has the features and benefits described by the 16 | Page . Appendix www.An Empirical Study of Servqual as a Tool for Service Quality Measurement Appendix Customers’ Questionnaire (Expectation) Dear Respondents. Your full participation would greatly help the cause of the study. Any information you provide will be kept strictly confidential.

An Empirical Study of Servqual as a Tool for Service Quality Measurement Tangibles: Statement 1 to 4 represent the customer feedback regarding Tangibles Reliability: Statement 5 to 8 represent the customer feedback regarding Reliability Responsiveness: Statement 9 to 11 represent the customer feedback regarding Responsiveness 17 | Page .iosrjournals.

iosrjournals.An Empirical Study of Servqual as a Tool for Service Quality Measurement Appendix Assurance: Statement 12 to 14 represent the customer feedback regarding Assurance 18 | Page .

org 19 | Page .An Empirical Study of Servqual as a Tool for Service Quality Measurement Appendix Empathy: Statement 15 and 16 represent the customer feedback regarding Empathy Empathy: Average Differences between Consumer Expectations to Perception Difference D= E.iosrjournals.5 20 40 20 5 2.5 0 0 0 0 Statement 16 No 0 0 0 0 5 8 16 8 2 1 0 0 0 Statement 16 -0.5 32.07 % 0 0 0 5 25 22.P -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 Mean Difference Statement 15 No 0 0 0 2 10 9 13 5 1 0 0 0 0 Statement 15 -0.075 % 0 0 0 0 12.5 12.5 2.5 0 0 0 www.

securities commission I. and has raised the level of overall investor protection in Malaysian market (Neetasha Rauf.952). PP 20-27 www. showed a relatively low percentage of non-compliance. The equity market generated market RM1. Government and International Studies. They play important roles to enhance the securities markets and services in Malaysia.D. and securities market industry ( Law Enforcement In Malaysian Securities Markets Asmah Laili Yeon 1. Universiti Utara Malaysia. School of Law. The MMOU has enhanced the SC's supervision and enforcement capabilities in dealing with cross-border market abuse. this paper provides useful information in relation to factors contributing to non compliance of participants of the capital markets. Toward this end. Recently. whereas. investor protection. construction (18. Nurli. As the main enforcement agencies. respondents were found to be generally satisfied with the roles and responsibilities of enforcement bodies i. For example between 2004 and 2006. it shows increasing numbers in cases of securities crimes (Securities Commission.524. INTRODUCTION Capital and services markets provide a useful means to mobilize capital and harness economic interests in an efficient manner to drive innovation and growth. Malaysia) 2 (Senior Lecturer Ph. Malaysia has implemented various measures to make the capital markets more attractive and competitive in the form of Disclosure Based Regulations (DBR) through the Malaysian Capital Markets Master Plan 2000 – 2010. 20 | Page . Securities Commission and Bursa Malaysia (mean of satisfaction = 3.IOSR Journal of Business and Management (IOSRJBM) ISSN: 2278-487X Volume 1. the Malaysian capital markets generated substantial income for the country. In conclusion. penalties for www. international standards and governance.iosrjournals. the Islamic Capital Markets RM1. 2011) [2]. the most significant being amending the Companies Act 1965 (CA) to address gaps in related-party transactions. The main regulator for the industry is the Malaysian Securities Commission which has a legal power under the Securities Commission Act 1993. Universiti Utara Malaysia. the Securities Commission of Malaysia launched the second phase of the plan which focuses more on the regulatory challenges. This survey was conducted among 107 principal and representative licensees registered with the Securities Commission of Malaysia. The enforcement bodies can implement measures on how to curb the unethical behaviour by carrying out ethics training and introducing new rules and regulations for the industry. r= .050 billion. Since then.e. Further. it is paramount important to discuss about the findings of the study in relation to law enforcement in Malaysian Securities Markets. however.D. The study by Asmah. particularly in the area of financial fraud and insider trading.7%). while only 17 respondents were capital markets and services licensees. 2012) [3]. Other industries. Malaysia continued to close the gaps on the remaining shortcomings. the Bursa Malaysia is the main registered stock exchange in Malaysia and acting as a self regulator body for its members and recognized and given powers under the Capital Markets and Services Act 2007. the investment management RM377 billion. 2012). They consist of licensed dealers. Malaysia is the signatory to cross-border enforcement arrangements and known for high standards of regulation internationally.7%). and Rohana (2002) [5] found that among the categories listed company involved in the non-compliance with the Listing Requirements of the KLSE (now known as Bursa Malaysia) is the manufacturing industry (24%). In 2010.iosrjournals. The majority of the respondents were capital markets and services representative licensees (CMSRL). Keywords . College of Law. Therefore.480). The Malaysian securities markets regulation has a comprehensive legal framework.660 to 3. and the derivatives market RM43 billion (Securities Commission.enforcement of law. growth. 2011) [4]. Issue 5 (July-Aug. investment advisers and fund managers. The study shows that there is a positive relationship between the views and attitudes of respondents towards the implementation of the legal philosophy by the enforcement bodies (r= . Ph. non-compliance. the bond market RM759 billion. 2011) [1]. securities law. 2006 there were nine cases involving misconduct in securities transactions. Malaysia) 1 Abstract : The objective of this paper is to discuss issues of law enforcement in Malaysian Securities Markets. But looking at the statistic of securities crimes in Malaysia. in 2011. On a scale of one to five.275 billion. School of Human Resource. LITERATURE REVIEW Malaysia has fully observed one of the 32 benchmarks (on accounting standards) and has largely observed nearly all of the benchmarks under the six categories of methodology (81% of 32 benchmarks) [6]. Securities Commission and Bursa Malaysia should further enhance efforts to monitor and enforce the law of capital markets. College of Business. The huge income generated by this industry is because of the capital and services market in Malaysia is well-regulated and this is recognized by the International Organization of Securities Commission (IOSCO. Faridahwati Samsuddin 2 (Associate Prof.

It reports to the Minister of Finance and its accounts are tabled in Parliament annually. encouraging self-regulation. Further. Law. Malaysia continued to close the gaps on the remaining shortcomings. approving authority for corporate bond issues. or be a party to. has voluntarily undertaken independent assessments under the various standards set by the IMF/World Bank. any unethical practices that may www. Division 1. Securities Commission) [7].iosrjournals. licensing and supervising all licensed persons. in striving to build a market of quality and integrity. (b) high standards of business conduct by listed issuers and brokers and (c) efficient and effective (Bursa Malaysia. with a commitment on full convergence with international accounting standards by 2012. 37 of these 43 recommendations has been implemented (2010. 43 of the 152 recommendations in the Capital Market Master plan that were released in 2002 were related to improving transparency and promoting higher standards of disclosures. implementing measures to expand the role of the audit committee in line with international best practices. it is guided by regulatory principles to achieve goals in the aspect of (a) investor protection to remain intact. and ensuring proper conduct of market institutions and licensed persons. implementing measures to expand the role of the audit committee in line with international best practices. Implementation of dual sanction. regulating all matters relating to securities and futures contracts.(Bursa Malaysia. market rigging. the Capital Market & Services Act 2007 (CMSA) enhancing the effectiveness of regulatory oversight of the SC by empowering it to institute civil proceedings. the Securities Commission. section 175 to 201. 1. and transforming GLCs into high-performing entities and upgrading of GLC boards. Improving transparency and benchmarking against best international practices have been key factor in transforming the Malaysian capital market as an efficient source for raising longer-term funds to finance economic activity. These provisions are stated in the CMSA 2007 in Part V. Heads of Dealing (HD) and Dealer's Representative (DR) shall refrain themselves from engaging in. private enforcement capacity of investors and disclosure. and the International Organisation of Securities Commissions (IOSCO). As for Bursa Malaysia in regulating market misconduct. The SC's many regulatory functions include supervising exchanges. Since then. 2012) [9]. The Commission is a self-funding statutory body with investigative and enforcement powers. 2.Law Enforcement in Malaysian Securities Markets contravention by 21 | Page . amending the listing requirements for stricter disclosures by listed companies. 2012) [11]. regulating the take-over and mergers of companies . clearing houses and central depositories.1(2) where participating Organisations (POs). fraudulent and misleading trading. Rules and Policy The Capital Markets and Services Act 2007 (CMSA 2007) [10] states offences of securities crimes includes false trading. Enforcement Bodies: Securities Commission and Bursa Malaysia The Securities Commission established on 1 March 1993 under the Securities Commission Act 1993. Reflecting the importance accorded to meeting international standards. Malaysia has fully observed one of the 32 benchmarks (on accounting standards) and has largely observed nearly all of the benchmarks under the six categories of methodology (81% of 32 benchmarks). dissemination of false trading and insider trading. As for Bursa Malaysia. registering authority for prospectuses of corporations other than unlisted recreational clubs. Malaysia voluntarily agreed to be assessed under the Corporate Governance Reports on the Observance of Standards and Codes (CG ROSC) by the World Bank in 2005. penalties for contravention by directors. In addition. and that business units within Bursa Malaysia are not in a position to influence any supervisory or regulatory decisions made by regulation. Principles. According to the Bursa Malaysia in managing conflicts of interests with public interest. Malaysia has published the CG ROSC that was completed in 2005. market manipulation. amending the listing requirements for stricter disclosures by listed companies. based on a methodology that is benchmarked against the internationally accepted OECD Principles of Corporate Governance. The SC has also supported the move to comply with international best practices on accounting-related matters. To date. as the competent regulatory authority for oversight of the capital market. the SC is also working closely with the respective Malaysian accounting boards to integrate accounting principles. In relation to the implementation of Code of Corporate Governance. the most significant being amending the Companies Act 1965 (CA) [8] to address gaps in related-party transactions. public interest and in particular the need for investor protection should prevail and the measures are separation of the regulatory functions from the commercial functions to ensure that these functions operate independently. it has the Business Rules of Bursa Malaysia Securities Berhad (Market Misconduct) [12] where the key trading rules that market surveillance focuses on the following issues: (a) Rule 401.regulating all matters relating to unit trust schemes. private enforcement capacity of investors and disclosure. and transforming GLCs into high-performing entities and upgrading of GLC boards . the Capital Market & Services Act 2007 (CMSA) enhancing the effectiveness of regulatory oversight of the SC by empowering it to institute civil proceedings. criminal and civil actions in combating securities crimes is seen as an effective strategy.

there were 37 licensed dealers(company).org 22 | Page .and. or directly or indirectly be tantamount to stock market manipulations. 2007. requires that the information disclosed in the prospectus the company must be simple and adequate for public knowledge. the PO's operations and proper conduct of its business and (e) Rule 404.14 individuals). and to assist economic development and growth. the undertaking of real-time and post-trade monitoring and analysis of both equities and derivatives trading activities (Bursa Malaysia. on a number of items on the performance of the implementation of capital market legal philosophy and the characteristics of public disclosure policy of Malaysian securities markets. (b) Rule 401. With respect to legal philosophy. Further.g. The surveillance system is able to detect a wide range of possible market misconduct situations on real-time basis. any such securities. Based on the distribution of questionnaires to the respondents. and 80 fund managers (companies). For company licensee dealers. RESULTS The discussion on this part will highlight results [15] of the following items. HD and DR shall avoid. and shall not participate in any operation by others which might have the same result. This is achieved through the conduct of dynamic and timely regulatory measures. investment advisers (80 companies and 16 individuals). 2012) [13]. respondents were asked to indicate to what extent they were satisfied or not satisfied that the legal philosophy of capital market is able to respond to any changes in the financial field at different times and in appropriate ways. any act or practice which might lead to a false or misleading appearance of active trading in any securities on the stock market of the Exchange or a false or misleading appearance with respect to the market for. with respect to characteristics of public disclosure in Malaysia. According to the official list issued by the Securities Commission. License Holders views on Roles and Responsibilities of Enforcement Bodies Bursa Malaysia and Securities Commission Malaysia (SC) plays an important roles and in enforcement of securities law. Seventeen of the respondents are the Capital Markets and Services licensee while the remaining 90 respondents are the Capital Markets and Services Representative licensee (CMSRL). Table 1 describe that respondents are satisfied with the role played by the Securities Commission of Malaysia in terms www. On the other hand.Law Enforcement in Malaysian Securities Markets damage the confidence of investors and hamper the sound development of the stock market. and enables and assists the public or potential investors to make the right choice and good value for their investment. investment advisors (financial planner). questionnaires were submitted to the Company Secretary and Compliance Officer. financial and business interests in the future. But for other licensees of a company status (e. License holders of an individual status. or the price of.1(3)(a) and (b) where POs. (i) license holders views on roles and responsibilities of enforcement bodies. income of the company. Table 1 and 2 below shows the effectiveness of both bodies in carrying out their functions and responsibilities in the securities industry in the country. The items of the instrument were assembled based on previous research and relevant Malaysian statutes. III. (d)Rule 404. RESEARCH METHODOLOGY To achieve the above objective. as at December 31. a survey was conducted among principal licensees registered with the Securities Commission of Malaysia. the Board of Directors). market surveillance by the Bursa Malaysia is to ensure the market operates in a fair and orderly manner so as to promote efficient price discovery and investor protection. questionnaires were given to the Company Secretary. to name a few.1(7)(c) where every PO shall at all times maintain a proper supervisory programme and a system of internal controls which must take into account among others. (ii) policy and business rules of Bursa Malaysia and (iii) the relationship between the view and attitude of the respondent on the effective implementation of legal philosophy Securities Commission and Bursa Malaysia and (iv) discussion on selected cases where the SC had successfully brought these case to justice. investment advisors). respondents were asked to indicate whether they are satisfied or not satisfied that the public disclosure in Malaysia requires companies to make a public announcement of material information (e. 1. (c) Rule 404. investment advisers and fund managers. a total of 107 respondents had given their responses. They consist of licensed dealers.g.iosrjournals. IV. the questionnaires were personally handed to them.3(1)(a) and (c) where every PO and every DR shall at all times observe professional standard of integrity and fair dealing and conduct their business in a manner which contributes to the maintenance of a fair and orderly market. The respondents were asked to indicate their level of satisfaction or dissatisfaction on a five-point Likert scale ranging from 1‟ “Strongly dissatisfied” to 5‟ “Strongly satisfied”.1(4) where a PO shall not allow any form of irregular and/or unhealthy practice to exist or prevail in its daily and professional business conduct. The findings show that respondents are generally satisfied with the effectiveness of the functions and responsibilities carried out by the two agencies. to ensure that capital markets continue to operate fairly and efficiently. The Bursa Malaysia Listing Requirements of Public Listed Companies (PLCs) is also one of legal document which regulates PLC in its business activities [14]. (27 companies. regulations and rules.

107 - 5.4 51.2 3.729 106 . Regulate the acquisition and amalgamation of companies. Promote and encourage good behavior among members of the exchange.952). To regulate all matters relating to securities and futures contracts.2 16. Item Advise the Minister on all matters concerning securities and futures industry. depository and all licensed persons.775 2.8 17. 107 - 2. To regulate all matters relating to unit trust schemes.906).766 6.8 33.0 15.635 106 2.0 53.6 25.9 3.9 7.869). including research and training related to it.7 48. Monitor and supervise the activities of any exchange.3 29.6 17.915).9 6.3 15. monitoring and supervising the activities of any exchange.6 22.4 54.9 45.1 20.6 47.7 19.9 SS 19. Develop and maintain the 106 11.6 3.1 24. and supervising all licensed holders under securities laws (mean = 3.6 Mean 3.7 15. NN 107 SD D 6. 1.783 integrity of all licensed persons From Table 2 below.0 S 44.1 18.iosrjournals.3 3.9 3.9 6.5 M 29.5 18.813 5.9 3. This is in terms of protecting the public interest by providing protection to investors' needs (mean = 3.660 10.906 106 1.1 3.8 43.2 3.5 22.4 20. the study found that respondents are generally satisfied with Bursa Malaysia's role in carrying out their duties and responsibilities as a self-regulator.6 33. 9.915 4. Encourage and promote the development of securities markets and futures contracts in Malaysia.952 11. 7. clearing and depository (min = 3. 107 - 23 | Page . and take appropriate action as provided in the Rules www.9 3.7 42. 10Dictionary Bottom of Form 107 .8 12. clearing. 8.8 3. To ensure that the provisions of securities laws are complied with. Licensing and supervising all licensed persons under the securities laws.3 17. clearing house and central depository.6 55. 107 - 7.6 3.0 44.5 31. Table 1: Frequency (%) Mean values for the level and effectiveness of the Securities Commission of Malaysia (SSM) in the Implementation Roles and Responsibilities No.Law Enforcement in Malaysian Securities Markets of ensuring that the provisions of securities laws are complied with (mean = 3.869 3. 106 . Consider and make recommendations for law reform in relation to securities and futures contracts.

5 3. 107 - 18.9 7.5 19. Public dissemination of the policy as a whole is sufficient and comprehensive. Table 3 shows the findings of the study. immediate disclosure of material information (mean = 3654).7 36.0 3.3 23.7 M 19.841).2 18. Item Corporate disclosure policies are generally in the Listing Requirements of Public Listed Companies is sufficient and comprehensive. 107 - 7. 107 - 9.1 4. Table 2: Frequency (%) Mean values for the level and effectiveness of the Bursa Malaysia (BM) in the Implementation Roles and Responsibilities as a Self-regulator No.841 2. 1.719 3. Item Protecting the public interest by providing protection to investors' needs.3 53.4 Uncertain 30.8 7.9 15.869 2.6 S 59.7 3.8 SS 15.3523) is sufficient and comprehensive. Immediate disclosure of policy information is sufficient and comprehensive material. confirmation and denial of rumors or reports are adequate and N 107 SD D 8. 107 .4 8.6 6. The respondents also satisfied with the role of Bursa Malaysia in ensuring if any interest required to be protected by any law relating to conflict with the interests of the corporation as aforesaid.4 59.345 5. Policy information. Generally. Take appropriate action as provided in the Rules of Bursa Malaysia for the purpose of monitoring or ensuring compliance.4 36.9 22.iosrjournals.6 48.Law Enforcement in Malaysian Securities Markets of Bursa Malaysia for the purpose of monitoring or ensuring compliance (mean = 3.9 Mean 3. Ensure that if any interest required to be protected by any law relating to conflict with the interests of the corporation as aforesaid. 1. Policy and Business Rules of Bursa Malaysia Respondents were also asked about the extent to which policies and regulations of Bursa Malaysia (BM) and comprehensive enough. respondents felt that the policies and regulations of Bursa Malaysia in terms of public dissemination of the policy (mean = 3.6 54.9 10. then the public interest should prevail.719). N 107 SD D 4.5 24. and periodic disclosure (mean = 3.588 2.4 3. confirmation and denial of rumors or reports are adequate and comprehensive.654 24 | Page .2 SA 6.5 Mean 3.4 56. 107 . Policy information.476 4.476).3 33. Table 3: Frequency (%) and Mean Value of Any perception on the How the Policy and Rules of Bursa Malaysia Adequate and Comprehensive No. 107 .495 www. then the public interest should prevail (mean = 3.8 A 54.7 3.5 3.3 14.

Variables Philosophy (1) Disclosure (2) SSM (3) BM (4) BM Policy(5) Crimes (6) Punishment (7) Civil Sanction(8) Non compliance (9) 1 2 .328** .3 27.5 3. was charged for causing to be submitted to SC false information.423** 8 .135 .5 3. 107 1.427** Table 4: Correlation Matrix of Variables 3 4 5 6 . 31 Oct 2005.126 .134 .173 .55(1)(a) of the Securities Commission Act (SCA) for causing the issuance of INIX Prospectus. The prosecution has filed an appeal against the sentence to the Court of Appeal.392 8.3 35. which contained information that is false.9 13. 107 - 9. In 2011. In other words. i. namely the revenue and profit after tax of GCB for the year ended 31 Dec 2002.5 3.313** . In addition they were charged under s.1 43.122B(b)(bb) of the Securities Industry Act (SIA) for knowingly authorising the furnishing of false statements to Bursa in relation to Inix's 4 quarterly reports for FYE 31 July 2006. Table 4 below shows that there is a positive relationship between the views and attitudes of respondents in relation to the implementation of the legal philosophy of the effectiveness of the Securities Commission and Bursa Malaysia's performance of its functions and responsibilities as law enforcement agencies (r = .00 fine but increased the default of imprisonment from 10 months to 2 years. 31 Jan 2006. Enforcement of law The success of Securities Commission in criminal prosecution in 2012. Policy disclosure in promotional activities to excess is sufficient and comprehensive. Regulations on disclosure are adequate and comprehensive periodic Regulations pertaining to the early preparation for the announcement to the public is sufficient and comprehensive.571** .000. comprehensive.094 . in the case of Chan Kok Suan (Securities Commission. The High Court Judge maintained the RM500. His conviction was confirmed and the fine sentence of RM1 million was ordered to be paid. the Group Managing Director of Granasia Corporation Bhd.e.107 .290* .6 44. Jimmy Tok Soon Guan & Cheong Kok Yai (Directors of Inix Technologies Holding Bhd) were charged with offences under s.4 7.360** .143 .9 5. Policy on insider trading is sufficient and comprehensive.189 . Cheong Kok Yai (Cheong) and www. On 29 September 2011. r = 480).iosrjournals. an operating officer of MIH.0 36.1 34. Normah bt Sapar (Senior Account Executive of Inix) was charged with abetting Jimmy Tok in committing all the offences set out above. 2012) [16] where Ashari an operating Ashari.223* .356** . The relationship between the view and attitude of the Respondent on the Effective Implementation of Legal Philosophy Securities Commission and Bursa Malaysia In addition to descriptive analysis made on data collected. 2011) [17] .6 6. this study also conducted a correlation analysis of the study variables.234* . 107 13.105 .6 3. the SC and Bursa Malaysia is seen to play their role effectively in accordance with the legal philosophy of the capital market in 25 | Page .524.253* . can be referred to the case Ashari Rahmat (Securities Commission.Law Enforcement in Malaysian Securities Markets 6. 30 April 2006 & 31 July 2006.346** . was charged in 2000 for engaging in an act which operated as a deceit on UPA Corporation Berhad's IPO exercise by switching successful applications with those not put through the balloting process.5 48.000.095 . This information was submitted in connection with GCB's listing proposal on the Main Board of the Exchange.276* .382 7.346** .1 57.220* - 4.523 9.207* . 107 - 9.311** .277* .0 6. Mok Chin Fan (Mok).457** .524** .480** .607 3. In another case Mok Chin Fan. The correlation matrix is shown in Table 4 below. The High Court also allowed a stay of the jail sentence pending appeal to the Court of Appeal upon payment of bail in the sum of RM500.091 9 .177 .387** . ("GCB").151 7 .644** .

000 (in default 1 year imprisonment) for the offence under s.000 (in default 12 months imprisonment) for the third and fourth charge respectively bringing the total fine imposed on Jimmy to RM1. the more severe breaches will be imposed public sanctions. For the 4 offences under s.1 million.122B of the SIA bringing the total fine imposed on Normah to RM350.278. In order to enhance market awareness.122B of the SIA.283.283. 2012) [18] in the sum of RM232.400. a total of 127 enforcement actions were initiated and 26 | Page . was fined RM400.000 (in default 1 year imprisonment) for the offence under s. where the sum Lim Chin Chin was required to disgorge was equivalent to three times the gains made by Ong Sew Teng and Chong Hiong Lim in connection with their trades in Sin Chew shares.400 Enforcement actions were also instituted against market participants.iosrjournals. 2012) Total 54 66 40 160 1. fines and suspension as presented in the table below and resulted in imposition of fines amounting to RM610.000 (in default 6 months imprisonment) for each of the four offences under s.55 of the SCA and fined RM50. Jimmy Tok Soon Guan pleaded guilty to all the offences he was charged with on 13 October 2011.000 1.55 of the SCA.122B of the SIA bringing the total fine imposed on Mok and Cheong to RM325. These actions encompass caution.400 Sanctions Imposed Public Reprimand and Fine Public Reprimand Private Reprimand Total Sanctions Total Fines Imposed (RM) (Source: Bursa Malaysia. Table 5: Enforcement by Bursa Malaysia Listed Issuers Directors 1 53 49 17 21 19 71 89 5. their dealer representatives and agents for violation of Bursa Malaysia Rules. Sanctions were imposed for various breaches of the Bursa Malaysia Listing Requirements against listed issuers and their directors as shown in the table below. with priority given to market offences. Table 6: Enforcement Actions by Bursa Malaysia Type of Action Participating Taken Organisations Striking off Suspension Reprimand & Fine Fine Reprimand Caution 5 24 20 17 Authorised Depository Agents 3 9 3 Derivatives Trading Participants 4 2 1 4 Derivatives Clearing Participants 5 Registered Total Persons 1 1 14 12 2 1 1 9 43 47 26 www. he was fined RM200. The settlement was reached following a letter of demand sent by the SC pursuant to its civil enforcement powers under the securities laws.Law Enforcement in Malaysian Securities Markets Normah binti Sapar (Normah) pleaded guilty to all the offences they were charged with. Mok and Cheong were each fined RM125. reprimand.000. Jimmy the CEO and Executive Director of INIX. Normah was fined RM150.000 (in default 2 year imprisonment) for the offence under s. In 2008. contrary to Section 89E(3)(a) of the Securities Industry Act 1983.000.320 when she agreed without admission or denial of liability to settle a claim that the SC was proposing to institute against her for insider trading in the shares of Sin Chew Media Corporation Berhad ('Sin Chew') between 29 January 2007 and 30 January 2007. In relation to civil actions and regulatory settlements the SC entered into a settlement with Lim Chin Chin (Securities Commission.000 (in default 6 months imprisonment) for each of the four offences under s.000 (in default 18 months imprisonment) for the first and second charges respectively and RM150.000.55 of the SCA and fined RM50. the total number of sanctions issued was 160 and included reprimand and fines amounting to RM1. For 2008.

524. The courts should impose the maximum penalty rather than a moderate amount which is not justified the harm done to the markets and investors as a whole. 2012).my (June 24. VI. 2008. Nurli Yaacob and Rohana Abd (June Enforcement in Malaysian Securities Markets Total Sanctions Total Fines Imposed (RM) 66 15 11 5 30 127 Companies Act 1965 (Kuala Lumpur: ILBS. 2012). Securities Commission. Bursa Malaysia. 2012). Pelaksanaan Kerangka Perundangan Penzahiran dalam pasaran Industri Sekuriti di kalangan pemegang-pemegang lesen di Malaysia. severity and effects of crimes on markets stability. Research Report. A Blue Print report. Malaysia.iosrjournals. research report. 2012). [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] Securities Commission. Annual Report. ethics training should be imposed to license holders by the Securities Commission. Universiti Utara Malaysia. 2002.000 (Source: Bursa (June Available at sc. Asmah Laili Yeon. It helps the enforcement body implemented measures on how to curb the unethical 2012). Available: http//www. Non compliance of public listed companies in Malaysia. Case Lim Chin Chin (2011). International Law Books Services. Case Ashari Rahmat (2012). Law Enforcement by Securities Commission. 2011. Securities Commission. Acknowledgements REFERENCES This research is financed by Fundamental Research Grant Available: http//www. 2011. Capital Markets Plan 2. 2012).300 70. Available: http//www. It is also proposed that courts should also play its role in imposing fines on criminals based on the amount of losses suffered by investors. Ministry of Higher Education. 2012). this paper provides useful information in relation to enforcement of law in Malaysian capital (June 24. Law Enforcement by Securities Securities Commission. The research is financed by Universiti Utara Malaysia. 2011).com.The MMoU: Ten years of Enhancing Cross-border Enforcement Cooperation. Securities 27 | Page . Securities Commission. Annual Report. Enforcement of Securities Commission. Securities Commission. Annual Report. Listing Requirement of Public Listed Companies (Kuala Lumpur: Bursa Malaysia. 2011. Law Enforcement by Securities Annual Report. Business Rules of Bursa Malaysia Securities Berhad (Market Misconduct) (Kuala Lumpur. CONCLUSION The overall findings of the study shows that respondents generally satisfied with the roles and responsibilities of enforcement bodies i. Kedah. The Annual Conference of the International Organization of Securities Commissions (IOSCO). Enforcement of Securities Commission. Enforcement of Securities Commission. 2011. Securities Commission and Bursa Malaysia should further enhance efforts to monitor and enforce the law of capital (June 24. 2012). More importantly. Case Chan Kok Suan (2011).800 (June Asmah Laili Yeon & Faridahwati Mohd Kedah. Available at sc. The research is financed by Fundamental Research Grant Scheme. (June 24.660 to (June Available at sc. Proc. 2012).. 2012) International Organization of Securities Commission. 2012) V.e. Securities (June 24. Securities Commission. Securities Commission. Available: http// (June 24. Available: http//www. 2011. Securities Commission and Bursa Malaysia (mean of satisfaction = In Securities Commission. Ministry of Higher Education of Malaysia. 2011. Securities Commission. r= . Compliance with IOSCO Annual Report. A Report. Even though the result is positive but as the main enforcement 2012 at pp 3. the study also shows that there is a positive relationship between the views and attitudes of respondents towards the implementation of the legal philosophy by the enforcement bodies (r= .com. Beijing. Securities Commission. Capital Markets and Services Act 2007 (Kuala Lumpur: ILBS. Available: http//www. Securities Commission. Law Enforcement by Securities Commission. 2011. Securities Commission. 2012). Law Enforcement by Securities Commission.000 - 173. Available: http//www. Available: http// (June 24. www. Bursa Malaysia. Corporate Governance Blueprint 2011. 2012).480). Universiti Utara Malaysia. International Law Books Services. 2012).900 2. 2011. 2012) Securities Commission.

000 i. has become one of the weakest with regular cases of failures. Co-operative sector plays a very important role in fulfilling the directive principles and the objectives of Five Year Plans.N JAWAHAR BABU Principal KMM Institute of Technology & Science Tirupati Abstrac: Urban co-operative banks (UCBs) are one of the vital segments of the banking industry of India.100.  provide need based quality banking services. I. According to National Association for Cooperative Urban Banks (NAFCUB). This decline was an outcome of the consolidation process. PP 28-30 28 | Page . which was considered as one of the robust and fast expanding segments of the banking system till late 1990s. mainly spread across Maharashtra. www. Gujarat. performance and financial strength  Diversity among the urban cooperative banks in the levels of professionalism. with a part of the powers vested in the State Government and a part with Reserve Bank.770 at the end of March 2008 to 1.780 urban cooperative banks and credit societies.IOSR Journal of Business and Management (IOSRJBM) ISSN: 2278-487X Volume 1. was around Rs 1. by 733 percent during 1991-2005. This absence of banking and credit facilities forced these groups to go to unscrupulous money lenders and private mortgagers who used to charge exorbitant interests or imposed almost non-repayable terms.  democratically controlled. Issue 5 (July-Aug. inability to operate in a liberalized and competitive environment. location and compulsions to lend to a sector and thus. informal atmosphere and local involvement  Dual control.  Heterogeneity among the banks in this sector in terms of size. The joint stock Banks who had opened in the urban and semi urban areas did not yet cater to these small depositors. and mutual help. Karnataka and Tamil Nadu. geographical distribution. 7800 crore to over Rs.  Procedural simplicity  Close contact. Introduction There was a decline in the number of UCBs from 1. The urban cooperative banking system has witnessed phenomenal growth during the last one and a half decades. They essentially cater to the credit needs of persons of small means. It lays the road to peace and abundance of wealth. high levels of loan delinquency. However. The co-operative sector seeks to remedy the economic inequality and evils of concentration of income and wealth and thereby prevents the exploitation of the weaker sections by the stronger. Features of UCBs:  Important part of the financial system in India. the total deposits & lending of Co-operative Banks is much more than Old Private Sector Banks & also the New Private Sector Banks. while advances have risen from Rs.V.  Essentially cater to the middle and lower middle classes and marginalized sections of the society.S. Deposits in UCBs have increased by over 1100 percent from Rs. 000 crore. 2012). 8600 crore to over Rs.iosrjournals. These have been playing imperative role in Indian financial system with broad network in both urban and rural areas. Co-operative Banks are organized and managed on the principals of co-operation.721 at end the end of March 2009. more than 800 licenses were issued for setting up urban cooperative banks. It must be recognized that an UCB’s basic organization is driven by the philosophy of co-operation and in a increasingly competitive environment an urban bank becomes more vulnerable on account of factors like size. Today. self-help. The income tax paid for last fiscal by 1.iosrjournals. standards of corporate governance and access to advanced technology  Consequent upon the easing of licensing norms in May 1993. Andhra Pradesh. close to one-third of these newly licensed UCBs became financially weak within a short period.000 Performance Evaluation of Urban Cooperative Banks In India Dr. there are evidences which clearly point out the weaknesses of UCBs such as lack of sound corporate governance. both material and moral for all the citizens.65.e. is deprived of scale economies. Co-operation is a noble ideology and it aims at establishing a just civilized society. unconscionable lending.  Hindrances to the performance of UCBs  Rising Competition: The Urban Co-operative Banks’ (UCBs) segment. This shows the might of UCBs and their contribution to the people on the one side and to the exchequer and the society at large on the other.

25% Prudential Bank 1.     THE FAILED BANKS – NAKED TRUTH Name of the UCB Krushi No. the Urban Cooperative Banks also have a weakness in terms of generation of share capital. and putting stakeholders’ interests at stake.7 65 Rs.Performance Evaluation of Urban Cooperative Banks in India   Scams: Involvement of some of the UCBs in Gujrat and Andhra Pradesh in the share market scam in 2001 greatly lowered the level of public confidence in these banks.5 11 Rs. 29 | Page .0 00 Deposi ts Rs. The most important part of Loan Policy is the pre-credit appraisal part which is absent in the so called Loan Policy of many banks.A.2 2 Cr. They are making investments based on their experience and on the basis of circulars and guidelines issued by the RBI from time to time but there are instances of violation of directives of RBI by some banks in the past by purchasing securities from fake brokers and ultimately the officers are entrapped in fraud case and money invested is turned into loss assets.52 Cr) 67.50 % (300. the potential is tremendous.297 Cr. But. doubtful and non-recoverable loss.35. there is virtually any Loan Policy not to speak of a comprehensive well laid out Loan Policy.39 Cr.38. Like policy of Loans and Advance UCBs should have an Investment Policy and be updated in each year and approved in the BODs meeting. the upper insurance coverage is only up to Rs 1 lakh. Of Deposi tors 8. Vasavi 1.A. Gujarat. Piling.up of NPAs: A high power committee constituted by RBI finds that the NPA levels in UCBs are disproportionately high. Uneven geographical dispersal: Uneven geographical dispersal of UCBs in few states such as Maharashtra. The type of reach cooperative banks has in our country and the type of customized services they can offer at the local level. Andhra Pradesh and Tamil Nadu is evident from the fact that those states account for over 80% of urban cooperative banks presence and 75% of their total deposits. Karnataka. Rs.451 . Thus the UCB sector is presently on a crossroad with these Banks finding it increasingly difficult to maintain their heterogeneous and unique cooperative character with the requirements of a strict regulatory regime and prudent banking norms as has been insisted upon by the RBI in the aftermath of the Gujrat and Andhra Pradesh experiences. the shareholders can withdraw their contribution to capital and shrink the capital of the bank and thereby limit its ability to increase risk weighted assets and expand business No clear-cut Loan and Investment Policy: In most of the UCBs in the state.22 Cr.iosrjournals.20 % (84.) 66.86.6% Dual Control: The multiplicity of regulation and control from central and state bodies hinders the smooth and efficient functioning of UCBs on the one hand. Even the existence of the Deposit Insurance and Credit Guarantee Corporation (DICGC). The fact remains that most of the UCBs has no policy of Investment. NonPerfor ming Assets (NPA) 32. This has the potential of influencing the Boards to take decisions that may not always be in the interest of the depositors who constitute the most important stakeholders of a bank. which is a major challenge to be tackled is. Charminar N. in case of UCBs.38. the Non-Performing Assets – which do not yield any income increased abnormally and the banks became weak/sick. 69 Cr. Poor governance: UCBs borrowers have a significant say in the managements of the banks. and the absence of administrative control by the government authorities leads to arbitrary usage of funds.20 % (64.247 1. Low Capital base: Further in spite of their strengths. 63. 0.) Capital to Risk Weighted Asset Ratio (CRAR) N. The ultimate result of this type of mismanagement in and non appraisal of the risk in credit is non recovery of loans and assets and standard assets trickling down to substandard. As a result of total mismanagement and frauds. www.143 Cr. the question is have we achieved the true potential? The answer to the question to a certain extent is negative.64 Cr.

Mumbai Government of India (1998): Report of the Committee on Banking SectorReforms.   II. Saint Mary’s University. The UCBs offered unviable very high interest rates as well as incentives to the depositors. Canada. Boston MA.2. RBI. a borrower mortgaged the land belonging to Wakf Board and obtained a loan of Rs. Chipalkatti Niranjan and Rishi Meenakshi (2006): Who Failed Whom? An Empirical Assessment of Prudential Standards and Co-operative Banks inIndia. University of Victoria and International Co-operative Alliance. Fictitious entries indicating repayment of huge amount of cash and subsequent withdrawal on the same day with a view to prevent the said amount from being classified as Non-Performing Assets (NPA). ever growing non-performing assets (NPA) and relatively low capital base.50 lakhs by mortgaging a Municipal Park in Hyderabad City. Vol. MumbaiReserve Bank of India (1999): Report of the High Power Committee on UrbanCooperative Banks. which had fake and fabricated sale deeds and therefore had no legal value. Victoria BC. Ignoring the RBI directive. a large number of banks have shown discernible signs of weakness. Loan proposals instead of routing through the Branch Managers were directly recommended by the Directors. In yet another sensational instance. [3]. the urban cooperative banks should be encouraged to grow. repaying capacity.July 8-10. 2005 Ramesha K (2003): Co-operative Banking and Financial Sector Reforms in IndiaAgenda for Future Research. International Conference on Mapping Co-operativeStudies in the New Millennium. The banks continuously defaulted in the maintenance of CRR and SLR. who were not even income-tax payers. 2003 Ramesha K (2004): Economic Reforms and the Performance of Co-operative Sector in India – Lessons for Future. 2004 Ramesha K.5 crores. And there are instances. RBI. Halifax. Canada. 5. Conclusion Urban Cooperative Banking is a key sector in the Indian Banking scene. January 6-8.iosrjournals. USA Reserve Bank of India: Report on Trend & Progress of Banking in India (1993-94to 2004-05). References: [1]. Advances were sanctioned for unproductive / consumption / ceremonial purposes. credit worthiness etc. Borrowers with no capacity to run business and repay amounts are sanctioned huge loans. The system of internal audit do not exist in many of the banks. Most of the properties mortgaged were grossly over valued by the valuators of the banks. Thus a few bad eggs should not curb the growth of a key banking entity. Sub-prime mortgage: Huge amounts of loans were sanctioned on the basis of the properties mortgaged with the bank. International Association for the Economicsof Participation. RBI. Asian-AfricanJournal of Economics and Econometrics. The operational efficiency is unsatisfactory and characterized by low profitability. Zulkhibri A Majid and Habibullah S Muzafar (2005): Determinants of 24 Deposit Taking Co-operatives’ Failure in 1986: An Empirical Evidence. British Columbia Institute for Co-operative Studies. AEA-ASSA Annual Conference. Though some UCBs have shown credible performance in the recent years. 30 | Page . Performance Evaluation of Urban Cooperative Banks in India Common Irregularities Reported In Some Ill Managed Cooperative Banks:             Siphoning of funds by directors Term loans were converted into overdrafts and loan amounts were enhanced without any formal request from the borrowers. Mumbai [5]. III. In several instances crores of rupees were sanctioned to the individuals. No 2. [4]. www. [2]. of the applicant. Also urban cooperative banks have not been able to service the growing credit requirements of clients or the newer demands for loans in the field of personal finance. 12th Biannual Conference. In the interest of healthy competition. The application for sanction of big loans were received in the head office directly by Chairman / Managing Director and the loan amounts of crores of rupees were sanctioned on the same day without obtaining any verification reports from the field officers regarding viability of the project / business. the Banks sanction huge loans to the prohibited and risky sectors. [7]. where crores were sanctioned even on the basis of nonexisting properties. Excess drawl was allowed in many Over-Draft accounts. which in the recent years has gone through a lot of turmoil. [6].May 28-31. There is an instance wherein a borrower obtained a loan of Rs.

so the logic behind their decision on not bring it to the market and commercialize it is clarified. or by technological obstacles that make it difficult for technical experts to achieve creating high-capacity batteries. Therefore. PP 31-36 www. To fully grasp the small-scale mobile device users. Keywords: Battery. While modern technologies (systems. and machines) are being developed. Competitive advantage I. Technology. developing more energy-efficient handsets which work well without wasting energy is the major engineering difficulty [1]. The problem with batteries is posed where more "mAh"(the unit for battery life time measurement describing the total amount of energy a battery charges up at each recharging) is better since it gives you higher battery capacity. had provided users with convenience of moving small computers (laptops) and changing their places before modern mobile handsets invented. only the computing features have been considered by consumers to be useful and good quite enough which motivates them to pay [2]. if it can be proved that giant electronics companies have already gained the information and technology of manufacturing longer life-time smartphone batteries. UTM. I study cell phone users' behaviour by the questionnaire approach with N=426 (small sample size) showing that customers do not consider the battery life time as their first three priorities when they buy a cell Leveraging Technological Capabilities for Competitive Advantages: Giving Samsung Way a Glance Nader Arvand International Business School (IBS). Then. whereas their main energy sources such as batteries have been improved in energy density and capacity at a much slower pace. Burgelman. However. The purpose of this article is to recognize and estimate the own knowledge of electronics companies in terms of improving battery lifetime.iosrjournals. business and computer software. Christensen. They have made unlimited mobility available for devices equipped by internet applications. applications. The question raised here is whether the low speed of improvement in the cell phone battery industry is caused by falling or low demand of customers (user behaviour). and Wheelwright (2009) [5] found that the larger existence gap between the company's own technological knowledge and those for customers of that particular technology results in higher prices for a product carries mentioned technology. Malaysia Abstract: One of the serious problems confronting developing and developed economies is the management and preservation of energy sources. but likely the battery is heavier and bigger than the others. The satisfactory solution that electronics engineering experts come with is Dynamic Power Management (DPM) technology which refers to selective shut-off or slow-down of the idle or underutilized components [3].org 31 | Page . demands for computing and telecommunication systems grow to adapt people with new business environment. however. Convergent technology developed in smartphones currently comprises computing. www.iosrjournals. and networks provided by a cell phone are increasing. companies need to more effectively allocate their resources and pursue market-driven strategies in terms of technology management and innovation. and business in a tiny device fitting your pocket. On the technical side. Introduction Transition from fixed-lined devices to wireless. especially for smartphone users. tools. Current electricity users comprise new generation of heavy electricity users such as portable electronic systems which have been boosted rapidly over span of happening years. there are more critical situations in which battery running out of power faces. The amount of electric energy consumed with a cell phone is being raised where features. Unfortunately. navigation. 2012).IOSR Journal of Business and Management (IOSRJBM) ISSN: 2278-487X Volume 1. the battery performance has not been improved at a desirable pace [1]. and eye-catching point is that you have all your data. and media applications. imaging. in order to figure out how the existing gap is large. Issue 5 (July-Aug. Up until this point. then to compare it with customers' knowledge which has been analysed based on primary data gathered. overcoming mentioned problem with batteries necessitate producing larger and heavier batteries simultaneously. this technique works quite effectively when the mobile device does not support communication capabilities including 3G cellular network and Wi-Fi connection [4]. mail boxes.

Numerous users see their cell phones as products which are no longer useful within little over a year. therefore.I Limitations The limitations have been placed on this analysis by the public where they answered questions posed in a way showing their commitment to the technological norms. The subject can be donated more attention whilst cash pay-outs are substantial when it comes to setting up the project of treating used plastics and metals so they can be used again. Thus it seems the longer mobile phone life cycle leads to less material and waste recycling costs while could indirectly ease the pressure exerted by environmental groups on mobile handset industry. the solution can be rooted in a technology advances the cell phone life cycle or rather the long-life battery. but not all respondents. including copper (a soft reddish-brown metal that allows electricity and heat to pass through it easily) and tin (a soft silver-white metal that is used to cover and protect iron and steel). This paper reports the concerns and expectations users have regarding applications. Meskers and Hageluken (2009) [7] estimated that over 40 elements are parts of mobile phones overall. Analysis IV. VoIP systems [11]. studies have viewed the energy consumption measurement from different perspectives including wireless fidelity connections [9]. Literature review One of the earliest previous studies on mobile phones published by Wright et al. Energy consumption of advanced cell phones is being generated by computing and connectivity applications. all own and use smartphones.and advanced cell phone batteries. whereas they did not have the know-how to explain why they think a particular technical feature of their cell phones has the quality of being important to them. Methodology The study will specify criteria that customers use to judge portable devices (smartphones) and make decisions about their purchase. Respondents are comprised of experts in electronics. in terms of mass and volume. video streaming and media applications and data managing algorithms [12]. www.II Focus According to the small scale of the sample size. The first three priorities of users when buying a cell phone. because new models are being marketed with short shelf life. Their opinions (data) were collected by asking them to fill questionnaires. are most valuable electronic materials founded in waste streams [8]. the majority of questions left open for more suggestions. Thus. Thus. special metal elements including indium and antimony. User's knowledge and concerns over battery life time and capacity. (1998) [6]. and precious metals such as palladium (a soft silver-white metal that is often combined with gold. therefore. III. IV. energy consumption and whether or not Samsung Electronics has met this demand with current products offered. and the public. and used to cover an object with a very thin layer of metal) and gold. GPS applications [10].Leveraging Technological Capabilities for Competitive Advantages: Giving Samsung Way a Glance II. by collecting and reporting secondary data. it would be more environmentally friendly to recycle mobile phones whereas costs might limit. who carried out a life-cycle energy research on a pilot mobile phone in Sweden and United Kingdom in 1997. Mobile phone users' attitudes with regard to energy consumption levels and savings have been examined by Rahmati and Zhong (2008) [13] and probed by Heikkinen and Nurminen (2009) [14]. They arrived at a conclusion that in terms of energy perspective. the study is aimed at exploring the investment development path of Samsung Electronics and how she adapts herself in terms of customers' preferences -determined by 32 | Page . without being affected or influenced by brand names or models. best endeavours have been made to looking for how respondents think rather than how many users think in a certain way. While the real problem is being faced in industry and market sides. however. business students (MBA students of International Business School of University Technology Malaysia). consumer feelings and opinions have not been mentioned on aforementioned papers. Assessing cell phone market shows cell phones have fairly short product life cycle. Meanwhile. where plastics form 50% of its weight. IV.iosrjournals. all answers given to open-ended questions represent the opinions of technologically aware segment of users. and why they own Samsung brand or not are main subjects that need to be discussed and deal with in this analysis. Metals account for around 23% of a cell phone weight. mobile phones.

it does not satisfy my needs well. (Students) 4.1 No. which are the features that you look for the most? Do you use Samsung cell phone? Why? Categories of Responses 1.3 Know-it-all. Internet heavyusers. (Students) 4.(Electronic experts) 3.3 Brand name 3.4% 42.1 (Rates of return) Questionnaires Distributed Returned Percentage Electronics Experts 115 98 85. (Students & the public) 2.2 (Respondent’s profile) Profile Gender Male Female Total ≥ 45 between 31 . (Students) 4. ≥ 25 Total Employed Student Other yes no Frequency 238 188 426 67 48 311 426 51. it satisfies my needs except battery lifetime.iosrjournals.9% Total 426 328 77% Table.Leveraging Technological Capabilities for Competitive Advantages: Giving Samsung Way a Glance IV.1 Misconceptions.2 No.4 Yes.2% MBAs 66 66 100% The Public 245 164 66.3 (Responses) Questions 1 2 How much battery life do you need? Do cell phone batteries’ details make any impression to you? Aside from price.2 Durability 3. it does not satisfy my needs well. it satisfies my needs. I am not a fan. (Students) 2.4 Battery lifetime 4.2 No.8% 5. (The public) 3 4 www.44 < 31.3 Yes.III Data categorization Table.8% 48 378 Age Group Status A Samsung user Table.1 Look 3.2 No information. Talkative users (+24h/ not on standby position) 2.1 More than a day for all respondents: Music fans. when you buy a 33 | Page . (Electronic experts) 4.

and their standpoints of Samsung brand. The technical knowledge about the cell phone battery varies subtly among respondents and naturally is in harmony with electronics expertise required for responding. so that "Durability" is first. Others (13%) highlighted a sharp contrast between appearance of mobile phones and mobile phones that also works as a personal digital assistant (PDA). stress this clear need. In reverse and a bit different order.Leveraging Technological Capabilities for Competitive Advantages: Giving Samsung Way a Glance IV. Table. their desire for a cell phone's features. "Durability". The formal education level goes up. The interesting point observed among 29 0ut of 30 student respondents is the misconception or relative lack of general information. the "Look". the "Battery life-time" is second. the users' technology knowledge regarding cell phones' batteries shows no ascending trend moving from ordinary people to master students.IV Patterns and connections Aforementioned categorizations include people with various educational levels. Customers' highest ranking desires and wants of a cellular phone features differ significantly between respondents. A Korean company that is best known for making and marketing electronic goods. no literate Samsung smartphone users voted for satisfying battery life time. the way that desirable features' priorities are arranged differs. whereas only 17 out of 181 respondents (66 masters of business accompanied by115 electronic experts who own smartphones) say they use Samsung smartphone for being satisfied with its durability.I. and their battery lifetime need contain apparent contradiction. in questionnaire. users do not allow new applications reduce their battery life time. www. and "Brand" rank as the first three main favourable features distinguished of a smartphone by the public.4 (Users’ priorities) V. the query necessitates to be answered is about why ever they still give low priority to batteries when buying a smartphone. as their proof of a smartphone purchase. When the question" How much battery life do you need?" was put to respondents. their desires regarding smartphone features. To complicate matters for Samsung. 87% of respondents rephrased their smartphone usage as the clear preference for internet access rather than 4 day handset's battery life. Where present smartphones batteries' lifetime causes the inconvenience of recharging regularly and all respondents.I Battery Life Discussion V. and the "Brand" ranked thirdly. practically. V.I Do smartphone users allow new applications eat battery life? New computer software with the capability of being run online demands a considerable supply of electricity and is the main battery life reducible. they made a choice of "longer the better" meaning more than 24 working hours to them. Samsung product planning in terms of features has attracted the public attention by its smartphones' appearance successfully. regardless of the specialization. This is similar to responses drawn from the public. without being influenced by their technical knowledge.V Interpretation The relations between users' technical knowledge. when it comes to translating battery labels.iosrjournals. more than what is being provided by smartphone batteries. Based on this hypothesis. But.Samsung is the popular brand among the public as they are satisfied with its smartphones' looks. The Prospect Theory developed by Kahneman and Tversky (1979) [15] explains the people assessment of changes as they make judgment on new things becoming different compared to a reference point. especially when it places emphasis on people's nonlinear attitudes with regard to this issue. Following table shows the top priority among list of features in terms of users' viewpoints. 34 | Page . IV.

during this study. The process is external technology sourcing and provides an opportunity to design and manufacture a self-designed and exclusive product [17]. who keeps her focus on technology and innovation. The brief discussion included is whether the low speed of improvement in the cell phone battery industry is caused by falling or low demand of customers (user behaviour).1 and 2 show the technology matrix and mode of technology internalization matrix. a product-based company. Student and the public placed the blame on handbooks containing a lot of information or details.4. Rich Site Summary (RSS: software that tells an Internet user when a website has new information on it). The technology internalization matrix is combined by multi-specialty and acquisition methods of core technology as its dimensions. and application of systems and technologies from outside the firm's logistics. Gaining ownership or increased control over distributors or retailers and looking for ownership or increased control of suppliers are vertical strategies being followed by Samsung [16]. Table.1 High HCHA cell High HCLA cell Availability Low Complexity Low LCLA cell LCHA cell Table.I. alternation. probing for external devices via Bluetooth. The Table. and technological complexity at high and low levels as rows. If a company does especially well compared to rival firms in terms of designing and introducing next generation of smartphone batteries with longer lifetime.specialty www.II. when her previous rival in preceding years missed out on digital music and digital television. Doing an assessment of smartphone battery improvements illustrates here that advanced battery technology is the high complexity. Acquisition methods are "Buy" and "Make" as columns and the multi-specialty is at high and low level demonstrated as rows. they can represent a competitive advantage.II.Leveraging Technological Capabilities for Competitive Advantages: Giving Samsung Way a Glance V.3% of respondents who have been classified under electronics experts were aware of the availability of power-setting options. how to make more energy efficient 35 | Page . and more importantly.4. 14.4.II Technology internalization The acquisition. V. and status update in social networks.I Strategies A component-based company. or by technological obstacles. Sony.II Samsung strategies for gaining a competitive advantage V. did not promote technological innovation and failed to catch competitive advantage in digital goods competition. Samsung. As the supporting documentation. The customers' needs and wants regarding battery lifetime have been identified as their demand grows faster than technology. The preceding discussion part formed based on users' behaviour.iosrjournals.2 Acquisition methods of core technology Buy Make Mid-entry strategy mode Full-scale in-house R&D mode High Effective reverse engineering mode Low Focused in-house R&D mode Multi. seized the opportunity in the digital age. The technology matrix is the box formed by technological availability at low and high levels as columns. V. automatic discovery of Wi-Fi. The survey carried out in China by Rahmati and Zhong (2008) [14] revealed that many users were not realizing or rather noticing that their smartphones are provided with power-setting options.II Are users aware of power-saving methods? Largest power consumer items of a smartphone are but not limited to display brightness. can improve technological capabilities.

& Heikki... Technol. 306–310. Bae. F. [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] www. & Pedram.. Heikkinen. Chun-hui. N. Burgelman. Di Lauro.. Sammartino. Samsung: The Inside Story of the Electronics Giants’ Battle for Global Supremacy. Mobile phone takeback and recycling: analysis of the ECTEL project. (2003). Oak Brook. G. (2010). C. Urciuolo. (1979). A. L.. In: Howard.. 235–250. Y. 23. & De Micheli. Design and realization of ad-hoc VoIP with embedded p-SIP server.. Eng... 2536–2555.. M. Technology development process in a developing country: a global perspective model. 26. M. Bong... Chang. V. (Ed. Peng.Leveraging Technological Capabilities for Competitive Advantages: Giving Samsung Way a Glance VI. Manage. & Yen-wen.. R&D Management. (2009). Econometrica. Gil. 132–137). Energy efficiency of mobile handsets: Measuring user attitudes and behavior. S. Sony vs.. M. and the survey conducted in this study reveals that the mentioned technology is low in availability in markets. A. G. 465–477. Cellphone energy gap: desperately seeking solutions. First International Conference in P2P Systems. USA. Pervasive and Mobile Computing. (2009). (2007). Bogliolo. Timo..expect high return on investment within this industry while this modern technology capability could reduce recycling costs of used plastics and metals as electronic waste streams. 813-833. Human–battery interaction on mobile phones.M. Pervasive and Mobile Computing. The application of GPS precise point positioning technology in aerial triangulation. Consumer attitudes towards different aspects of mobile peer -to-peer services. G. K. Hongxing. Rahmati. S.. 18(3). R. British Journal of Oral and Maxillofacial Surgery. Strategy Analytics. Telematics and Informatics. When full-scale in-house R&D mode of acquisition methods of core technology is selected by Samsung for technologies in MLCC (Ranked as Top five in its global market share. 1617–1634. Coverage and connectivity issues in wireless sensor networks. & Tversky. 6(2).. thus. L. S. (pp. Technovation. 263–291. Amitabha. & Wheelwright. Jukka. Paleologo. H. C. EPD-TMS congress 2009.(New York: McGRAWHILL INTERNATIONAL EDITION. Integration model of technology internalization modes and learning strategy: globally late starter Samsung’s successful practices in South Korea. Christensen. Zarrelli.). 333–347. – 59. high investment in in-house research and development for battery technology advancement accompanied by pull marketing strategy efforts -that encourage demands. Lin-huang. The MLCC is categorized as high-complexity low-availability within Samsung technology matrix [18]. Shih-yi. Greening academia: Use and disposal of mobile phones among university students. (1999). (2009). USA. California. F. & Choi. S. C.. Proceedings of Sessions and Symposia Sponsored by the Extraction & Processing Division (EPD) of The Minerals. Jianhong. The broader gap between customers and companies in terms of product technology knowledge. Wright. 2009). (2011). Metals & Materials Society (TMS). Santarelli. S. performance of technology internalization has been successful.. & Williams. 303– 36 | Page . S. Closed loop WEEE recycling? Challenges and opportunities for a global recycling society. (1988). Benini. Illinois. Waste Management.). H. Robinson. Di Lauro. R. A. (2009).. 1049–1054. G. Lee. Strategic management of technolog and innovation. Ongondo.. S.. & Sajal K. 215–217. & Lee. ISPRS Journal of Photogrammetry and Remote Sensing.iosrjournals. Xiuxiao... pp. IEEE Trans. J. Computer-Aided Design.. (pp. The Journal of Systems and Software. San Fransisco.. Policy optimization for dynamic power management. (2008). Prospect theory: an analysis of decision under risk. T. the battery performance has not been improved at a desirable pace [4]. et al. core component for Mobile Phone). (1998). & Nurminen. D. the higher price put up for that particular product is acceptable by market [5]. F. D. & Zhong. J. A Markovian Decision-based Approach for Extending the Lifetime of a Network of BatteryPowered Mobile Devices by Remote Processing.. S. A. A. C. Kahneman. V. (2010). (2008). D. Conclusion Unfortunately. I. J. L. Z. References [1] [2] [3] [4] [5] [6] [7] Mikko. H. L. & Charles.. C.. (2009). remarkably similar to the battery technology. Effectiveness of a new decisional algorithm in managing mandibular ameloblastomas: A 10-years experience.. J. Meskers.. Y. IEEE.. Low Power Electronics. (2012). 541-550.

. Health expenditures per capita..6 trillion in the U.S. was equal to about $8. is projected to grow to about 20% by 2020. at about 17. and $0. This $5. Despite the incredible investment America continues to make in health care.5 trillion elsewhere around the world. Total health care expenditures around the world are difficult to determine. the U. Germany. with expenditures per capita about $800. That would place health care at about 8% of global GDP. averaged $3. hospitals and health systems write off massive amounts of revenues to bad debt... 16.S. (50. Nonetheless. Russia.iosrjournals. found stark contrasts between health costs in the United States and those of other nations. while spending in the world‟s remotest villages was next to nothing. Canada. III. In 2008 (the latest complete data available).0% of GDP on health care.000. OECD nations.. wellness programs. Clearly. a lack of insurance was due to a personal decision not to pay for it. the use of preventive care programs is growing.K. Health care spending per capita in the U.S. Outside the A Study of Service Quality Management on Health Care Industry in Bangalore H. insurance was unavailable or unaffordable. USA:: International and National Scenario Health care spending in America accounts for a larger share of GDP than in any other country Health spending in the U. S. Physicians are caught between the desire to provide quality care and the desire for cost control on the part of payers.S.2% and Switzerland at 10. largely overlooked. Australia and the U. as there is with personal income and GDP.4 trillion breaks down to approximately $2.S. In other cases.S. on a purchasing power-adjusted basis (PPP). India or China).S. the total prescription drug market was in the $630 billion range in 2010. Medicare and Medicaid. Bangalore560076 I. $2.iosrjournals. covering more than 30 nations including the majority of the world‟s most developed economies (but not Brazil. France. 8thMain.3 million the previous year) lacked health care coverage for the entire year of 2009. France at 11. One of the main differences between the health care system of India and USA is the greater role of the states in health care provision www. Japan. including PPOs. PP 37-44 www. spent 9. Other factors edging costs upward include expensive new medical technologies and patients‟ demands for greater plan flexibility in choosing doctors and specialists at their will. much of it centered on patients‟ rights. The trend over the near future is for the modest amount now spent on health care in emerging nations to rise dramatically. Vijaya Bank Layout. Critical Partners: Employers. while OECD nations like America struggle to contain their own mountainous costs. as is the use of employee education aimed at better managing the effects of diseases such as diabetes. competition and productivity were. Other Countries: A comprehensive study published by the OECD (Organization for Economic Cooperation & Development) in 2010. and thereby reduce costs. that would allow roughly $88 per capita per year. The cost versus care debate has spawned an energetic movement to improve the quality of health care in the U. For some. Issue 5 (July-Aug.5 trillion would be a fair estimate for 2010. the average of a list that includes.5% of Gross Domestic Product (GDP) in 2010. disease management. preventive medicine and health education remain woefully inadequate.IOSR Journal of Business and Management (IOSRJBM) ISSN: 2278-487X Volume 1. Employees And Insurer’s. South Korea. for example. regretfully. In the wake of the tremendous growth of all aspects of the health care industry from the end of World War II onward. efficiency. which increases costs for bill-paying patients.290 in 37 | Page . but $5. Murthy 434. At the same time. 2012).7 million people. Globally.S. Healthcare Providers Perspectives: Many major employers are utilizing unique new programs in efforts to reduce employee illness. preventive health care and patient education. up from 46. Much of this occurred because employers plus federal and state governments paid such a large portion of the health care bill. Mexico. II. there is vast disparity in the availability and cost of care among nations.7% of people in the U. and the rest of the OECD. For example.7%. Patients and insurance companies are also dealing with sticker shock over the nation‟s prescription drug costs.4 trillion in non-U.

These hospitals provide treatment free of cost. the supply of healthcare services has grown steadily.IV. The main problems affecting the success of primary health centers are the predominance of clinical and curative concerns over the intended emphasis on preventive work and the reluctance of staff to work in rural areas. Rising income levels and a growing elderly population are all factors that are driving this growth. However. these facilities are limited and are inadequate in meeting the current healthcare demands. nurses and para professionals Better policy regulations and the establishment of public private partnerships are possible solutions to the problem of manpower shortage. poor services at state-run hospitals force many people to visit private medical practitioners. Therefore. Government hospitals. These facilities are part of a tiered health care system that funnels more difficult cases into urban hospitals while attempting to provide routine medical care to the vast majority in the countryside. Primary health care is provided by city and district hospitals and rural primary health centres (PHCs). According to WHO statistics there are over 250 medical colleges in the modern system of medicine and over 400 in the Indian system of medicine and homeopathy (ISM&H). child birth. Healthcare in India features a universal health care system run by the constituent states and territories of India. and treatment of common illnesses. is more willing than ever before to pay more for quality healthcare. In addition. primary health centers often play an adversarial role in local efforts to implement national health policies. www. Primary health centers and sub centers rely on trained paramedics to meet most of their needs. Despite having centers of excellence in healthcare delivery. the integration of health services with family planning programs often causes the local population to perceive the primary health centers as hostile to their traditional preference for large families. prevention of malnutrition. In addition. pregnancy. changing demographics. the Indian middle class.[6] Indian Healthcare: Challenges & Prospects: On the one hand. Most essential drugs are offered free of charge in these hospitals. an outpatient card at AIIMS (one of the best hospitals in India) costs a one time fee of rupees 10 (around 20 cents US) and thereafter outpatient medical advice is free. Primary health centers are the cornerstone of the rural health care system. A Study of Service Quality Management on Health Care Industry in Bangalore Indian Governmental Efforts & Primary Healthcare: V. Nearly one million Indians die every year due to inadequate healthcare facilities and 700 million people have no access to specialist care and 80% of specialists live in urban areas. some of which are among the best hospitals in India. Status Of Indian Healthcare System: T he Indian healthcare industry is seen to be growing at a rapid pace and is expected to become a US$280 billion industry by 2020 The Indian healthcare market was estimated at US$35 billion in 2007 and is expected to reach over US$70 billion by 2012 and US$145 billion by 2017 [3]. India produces over 250. the vast majority of the country suffers from a poor standard of healthcare infrastructure which has not kept up with the growing economy. disease profiles and the shift from chronic to lifestyle diseases in the country has led to increased spending on healthcare delivery [5].iosrjournals. provide treatment at taxpayer expense. postnatal care. with its increasing purchasing power. Primary care is focused on immunization. Even so. The Constitution charges every state with "rising of the level of nutrition and the standard of living of its people and the improvement of public health as among its primary duties". In-hospital treatment costs depend on financial condition of the patient and facilities utilized by him The charges for basic in-hospital treatment and investigations are much less compared to the private sector. According to the Investment Commission of India the healthcare sector has experienced phenomenal growth of 12 percent per annum in the last 4 years [4]. the government sector is understaffed and 38 | Page . Patients who receive specialized care or have complicated illnesses are referred to secondary (often located in district and taluk headquarters) and tertiary care hospitals (located in district and state headquarters or those that are teaching hospitals). The cost for these subsidies comes from annual allocations from the central and state governments. Government hospitals provide treatment either free or at minimal charges. as the private sector becomes more involved in owning and running hospitals Indian healthcare industry is fairly insulated from global recession and slowdown in the Indian economy and healthy enough to grow at the rate of 15% over the period of next 10 years. For example.000 doctors annually in the modern system of medicine and a similar number of ISM&H practitioners. On the other. In order to meet manpower shortages and reach world standards India would require investments of up to $20 billion over the next 5 years Forty percent of the primary health centers in India are understaffed. reveals a report on healthcare sector released by Confederation of Indian Industry (CII) and Grant Thornton India. The National Health Policy was endorsed by the Parliament of India in 1983 and updated in 2002.

Moreover. consumers become more and more engaged in making informed decisions about their health and are well aware of the costs associated with those decisions. in the next decade. a well reputed hotel in Coimbatore is known for immediate action against their employees who take customer service lightly. healthcare providers are now not only looking at improving operational efficiency but are also looking at ways of enhancing patient experience overall. there is an expectation of service at a low cost. the world famous management guru.5 million US patients would be medical tourists who would be getting their surgery done abroad. With the amalgamation of vast areas from the hither-to Rural www.7 hospital beds per 1000 population. An estimated 750.96 hospital beds per 1000 population India stands just a little over 0. However. This number however. India is now looking at establishing academic medical centers (AMCs) for the delivery of higher quality care with leading examples of The Manipal Group & All India Institute of Medical Sciences (AIIMS) already in place. India faces a shortage of doctors. at the same time. the long waiting time in their local markets coupled with insurers that do not cover certain surgeries. they will be flatter with more responsibility at the lower rungs for their respective areas of functioning Bangalore in the Indian Healthcare Map: Since the 90s and more recently. this outsourcing will be broadly led by low cost of healthcare in the developing countries. The work of Sulabh International deserves special mention in this regard. has grown huge in the last 15 39 | Page . In Kerala.000 Americans outsourced their health care in 2007. and the report estimated around 1. With a world average of 3. predicts that the organization pattern in the services sector will be such that unlike the traditional pyramidal organization. India licenses 18.A Study of Service Quality Management on Health Care Industry in Bangalore India faces a huge need gap in terms of availability of number of hospital beds per 1000 population. nurses and paramedics that are needed to propel the growing healthcare industry. For instance. there were 2.iosrjournals. the total number of civilian hospitals for all states and union territories combined was 10. Medical tourism in India: Future trends However. the realization has dawned that a good service organized at a reasonable cost is definitely worth having. customers in developing countries are not at all demanding. sincere response to the customers even in small matters earns a lot of goodwill. the healthcare sector has witnessed corporatization in a big way . Even normal services are considered a great boon. there were 735 hospitals as of 1990. In order to remain competitive. India has approximately 600.000 hospital and health care facilities beds. with a 1991 population of 29 million occupying an area only one-seventh the size of Uttar Pradesh. Planning for the growth of quality services is by itself a big task in the developing countries. with Bangalore having been recognized as the silicon city(not valley) of India.000 allopathic doctors registered to practice medicine. since the purchasing power of people is low. The medical tourism business in India has been growing in recent years and as such India is a popular destination for medical tourists who receive effective medical treatment at lower costs than in developed countries A recent forecast by deloitte Consulting published in August 2008 projected that medical tourism originating in the US would increase over ten times than what is it currently. The geographical distribution of hospitals varied according to local socioeconomic conditions. is higher than the actual number practicing because it includes doctors who have immigrated to other countries as well as doctors who have died. even for a pay and use latrine in a bus stand. Responding to Customers’ needs A system for ab initio identification and correction of errors is also important for quality services. Keeping nicely printed forms is not sufficient particularly in the Indian context when there is poor credibility of services! Customers do not just believe that any improvement will come and hence they merely turn cynical. In 1991 there were a total of 811..000 new doctors a year. As incomes rise and the number of available financing options in terms of health insurance policies increase. In India's most populous state. more and more people are willing to pay.157. electric supply to industries or water supply in towns and cities to a burgeoning population is not an easy task. For example. Customers who are recipients of defective service often quickly reconcile themselves to shoddy services out of sheer despair and do not bother to report them. excellent infrastructure in terms of medical and surgical care. On the other hand. by now. Since there is an enormous gap in the availability of services. In a developing society. as a fastest growing city. According to data provided in 1989 by the Ministry of Health and Family Welfare. Uttar Pradesh. Peter Drucker. India's health care system also includes entities that meet or exceed international quality standards.Bangalore. with a 1991 population of more than 139 million. as long it is reasonably well maintained. For example. a flight arrival at the scheduled time is considered a great obligation done to the passengers Consistency and predictability are important aspects in the services sector. For example.053 hospitals.

inventoried. An analogy may be drawn in the public sector. measured. drawing from far off states in India. Second. According to Parasuraman et al. whereas others do not want to be on their own.g. there are three well-documented characteristics of services-intangibility. As a consequence. Repeated encounters help establish brand and customer loyalty. the consumers‟ input becomes critical to the quality of the service performance. which is crucial if Bangalore is to emerge as a hub for medical tourism and telemedicine. on-board meals.A Study of Service Quality Management on Health Care Industry in Bangalore Bangalore District. Objective of the Study To measure the quality of healthcare products and service being delivered and to identify factors those influence the patients‟ and beneficiaries‟ confidence and comfort level. nursing home and 24-hour-care centres. airline passengers. putting huge pressure on the general infrastructure and in particular. seat alignments. Indeed.. booking arrangements. choice of film. the healthcare infrastructure. Third. most services cannot be 40 | Page . Responsiveness Reliability. Empathy by survey method. the particular learning needs of individual students will be different – some will be more numerate or literature than others. and some will have different ambitions for applying the particular knowledge being taught to them. First. services are intangible. and Assurance. there has been an explosion in population. quality occurs during the delivery of the service. usually during the interaction between the client and the key contact person from the service provider. quality is not engineered into the product at the manufacturing plant and then delivered intact to the consumer. Within any class room in a school. VII. thus removing the final quality check commonly found in the manufacturing sector. Consider for example. on 5 dimensions: Tangibles. The key hypothesis is: Relationship management plays a vital role. Rather. some patients crave their own room on hospitalization. We measure service quality using the Servqual model of Parasuraman. tested or verified in advance of delivery to ensure quality.iosrjournals. services have „inseparability‟ by which is meant that the production and consumption of services are not separate as they are in manufacturing. Haywood-Farmer (1988) and others. on a 5 point Likert scale. on Non random (convenience) Snow Ball sampling method and then analysed using SPSS. Methodology used in the Study Extensive literature review done by the researcher stresses the usefulness of the Servqual model and especially the empathy dimension in understanding the crystallization of the concept of service quality. There is a big rise in private sector hospitals. Similarly. in the health sector. of sample size 500. This study gives us a snapshot picture of the situation as far as service quality in Bangalore Hospitals and can be used improving service quality and thereby brand loyalty in the future.The private hospitals in Bangalore are competing with best Government hospitals as also the best private hospitals of the world. The main implication of intangibility is that generally one cannot store a service. heterogeneity and inseparability-which must be acknowledged for a full understanding of service quality. VI. Different passengers may have different priorities e. schedules. schedule reliability. in the service industry. In these situations. because they are performances rather than objects. the customer wishes to participate in creating the www. friendliness of flight attendants etc. in many service contexts. services have customers with very heterogeneous needs: Consumers of the same service do not all have the same priorities.

this premise of service quality assumes that the judgment of the service received will have combined both evaluation of the outcome of the service and the evaluation of the processes of the service delivery.g. the nature of how quality is evaluated for services is conceived to have a different emphasis from that of manufacturing where quality judgments are essentially responses to tangibles. ● Courtesy: e.g. Though medical service providers have taken all the factors into consideration. keeping customers informed in language they understand. where quality is in the main associated with the properties of an object which can be measured and demonstrated in a tangible sense. The dependency makes the beneficiaries ignore gaps in service quality. A timely response is important. ● Appearance / presentation e. and some have sought to arrive at a general model of the determinants of customers‟ perception of service quality ● Reliability: e. whether at the local. it means explaining the service. willingness to provide the service. assuring the customer that a problem will be handled ● Credibility: e. so distinguishing it from the objective quality of the manufacturing sector. Hence.A Study of Service Quality Management on Health Care Industry in Bangalore service. freedom from danger. still the concept of “patient is king” as in the case of consumer products where “consumer is king” has not taken root. the customer or stakeholder is sometimes intimately involved in the process. possession of the required skills and knowledge to perform the service. heterogeneity and 41 | Page . thus highlighting the inherent importance of the consumer of service having an active involvement in the production or completion of the service process itself. Regarding government provision. You will have missed an opportunity to serve that customer and the next person they call will probably be one of your competitors. for example in planning decisions for housing or industrial development if quality (lack of disagreement) is to be achieved. Also. This is because even today patients are dependent on health care providers. trustworthiness.g. ● Competence: e. education and social service encounters between professionals and clients as well as for some aspects of government provision. it has not reached all levels.iosrjournals. the appearance of personnel. tools or equipment used etc. Characteristics of excellent customer service (3 R’s) Excellent customer service should be the aim of all suppliers of products and services. etc. provincial or central level. performing the service at the designated time. It has the following characteristics: Responsive: Excellent customer service is responsive. The determinants of service quality above (based on Parasuraman et al. www.g. making the effort to understand the customers‟ needs by providing individualized attention. quality in the preferential sense is identical not with the properties of an object but rather with the capacity of the properties to achieve a goal.g. Even today the trust factor plays a vital role in the level of confidence patients have and it varies by individual. belief that they have customers‟ best interests at heart. also listening to them. for services there is a strong interactive component to the whole aspect of quality. the physical facilities. honesty.g.g. ● Security: e. risk or doubt ● Understanding / knowing the customer: e. This is certainly true for health. Though the awareness amongst the beneficiaries of medical services has considerably increased. a „performance‟ or an „effort‟. It is for these reasons that writers on service quality have defined service as a „deed‟. explaining any options or costs. Following from these features of intangibility.g. If you delay responding they will solve their problem in some other way. The customer had a requirement when they contacted you and they are likely to have delayed expressing their need. VIII. It is these interactive properties which have led some to label the nature of quality in the service sector as preferential. SERVICE QUALITY Service quality in providing medical solutions has become a competitive advantage as service providers irrespective of government or private. this goal being a state of affairs which is preferred to other states. approachability and ease of contact with the providing institution etc. ● Access: e. In contrast.g. Service Quality Judgments Service quality judgments are considered to be driven by a comparison of consumer expectations with their perceptions of the actual service quality received.1985) demonstrate the weight of interactive components in judgments of service quality. ● Responsiveness: e.

Excellent customer service is therefore reliable. Did the Nurse Come This is a measure of whether the nurse was easily accessible. On the other hand. the nurse forms the interface between the hospital and the patient and is consequently crucial in determining rating of service quality. However. where one had to wait in long queues to register. The nurse also acts as an interface between customer and hospital and thus is very important from the point of view of customer satisfaction. attentive. customers expect to be treated like royalty and are treated accordingly only in private hospitals. Analysis The data was analyzed with the help of SPSS statistical 42 | Page . Empathy. a measure of overall satisfaction with the hospital and the independent variables were the various dimensions of the Servqual scale i. Tangibles. respectful and responsive. Indians coming out of a long history of socialism. Why customer service problems exist (3 I‟s) Unreliable customer service persists because of the existence of a lack of incentives. are likely to pleasantly surprise to encounter a more streamlined registration process. with continuously high levels of customer service. The one factor in which private hospitals outscore public hospitals is empathy. most thought people at www. Not surprising. As this is a descriptive study. because they are just so rare. I want good service and I want it every time. and Responsiveness. such as Coca-Cola.e. polite and helpful customer service representatives should treat customers with respect. impersonal setting like a hospital. Reliability is heavenly. Respectful: Informed. India‟s new found wealthy. which shows the importance of nurses in the healing process. It is costly for employers to deal with queries.yet it persists in abundance. Though the data consisted mainly of ordinal data. Reliability. a measure of empathy came out as the most important. this trend has yet to take root. Nurses are often poorly paid and over worked and the profession has yet to find its place in the medical care scenario. Quality requires both consistency and reliability. It must be borne in mind that this is a snapshot in historical time and is likely to change in the fullness of time. recalls. will thrive well into the future. nurses are often accorded the status of doctors. The variable is a measure of ease of registration from very easy to difficult to register. Research Design A total of 540 persons were surveyed with regards to their attitudes towards the service provided by private hospitals in Bangalore. and “Rate your Doctor”. Unreliability is not good for either party.buyer or seller. In India. Customers want excellent customer service and they want it every time. justified the use of parametric statistics such as correlation and regression. At the time of writing. The main dependent variable was Rate Your Hospital. Reliability is heavenly Quality is about consistent reliability. (Reliability) as the 2nd and 3rd factors. In a large. a random sample was employed to further understand the ratings provided regarding service quality. cheerful. The only surprises that customers find welcome and positive are those that improve the service they receive and exceed their expectations. a lack of information and a lack of independence. “Hospital Equipped” (Tangibles). the use of the Likert scale and the moderately large sample size. A good friend is a reliable and a consistent friend. Rate Registration The registration desk is the first point where the consumer encounters the hospital and is therefore highly likely to shape customer attitudes. complaints and so on and the same is true for the consumer who is inconvenienced and frustrated by unreliability. Assurance.. This finding is also echoed in the results of correlation and regression. In foreign hospitals.A Study of Service Quality Management on Health Care Industry in Bangalore Reliable: Excellent customer service is consistently responsive. there is a clamour for mechanisms of accountability such as citizen‟s charter and this is likely to affect the health care sector as well.iosrjournals. Findings “Did the Nurse come”. most respondents rated the private hospitals well in terms of registration rate. In fact the physician writer Lewis Thomas is so convinced of the centrality of nurses that he is willing to give them the moon if needs be. companies that can deliver consistent reliability every time at all the time.

CAT scan machines telemedicine etc. These workers may be far down the hierarchy but they play a crucial role in the functioning of the hospital. 7. They not only do their duties but run essential errands for the patients and keep the patients‟ company. 8. since it is part of the draw of private hospitals. it requires professionals of the highest caliber. longitudinal studies that measure the stability of the concept over time as well as the impact of various factors such as gender. There is thus room for improvement. the results show the importance of ayahs and sweepers. Continuing education programme should be made available to the nurses. While they enjoy a high status abroad. Public private partnerships should be encouraged. Thus. IX. Since this is an exploratory study. more studies need to be conducted to further elucidate the concept of service quality. Public hospitals should also equip themselves if they want to continue to attract customers. Detailed Recommendations Since the study underlies the importance of the empathy factor. the situation is not the same in India. when it comes to staff manning the registration desk Hospital Well Equipped The private sector scores over the public sector in having access to the most modern equipment and technology. This will reduce corruption in this sector. More attention needs to be paid to the recruitment of nurses. The main recommendation is to take care in the recruitment and training of nurses. 2. They are an integral part of the hospital‟s functioning. who are highly skilled.A Study of Service Quality Management on Health Care Industry in Bangalore the registration counter were „alright‟ as opposed to nice. is validated. the main hypothesis of the study.iosrjournals. should become more comparable to that of doctors. These issues need to be addressed by the government. www. Nurses are an essential part of the health care process and it is sad to note that they have not got their due in the health care scenario in India. where as nurse practioners. MRIs. Tangibles (Is the Hospital Well Equipped) and Reliability (Rate your doctor) are key factors. which is that relationship management plays a vital role in the health care system. Last but not least. Conflicts of interest (such as private doctors participating in the public sector) must be discouraged. allow them to take decisions in times of medical emergency. 3. The reliability dimension should be addressed by hiring doctors who not only possess technical skills but abundant affection for people. 6. low status job and this needs to change. Care should be taken to choose those with a genuine affection for people and not just those who are in it for the money. In particular. Here. This will improve the quality and care. Since nursing is a caring and demanding profession. The private hospitals are seen are superior in this regard Suggestions & Conclusion Empirical survey showed that the three dimensions of Empathy (Did the nurse come). 5. Doctors may be overworked because of paucity of medical staff in rural areas and primary care. This is addition to proper consumer redressal mechanisms. on basis of their affection towards people. importance should be given to the recruitment and training of nurses. education and age need to be taken 43 | Page . Presently nurses are paid peanuts and this attracts the lowest common denominator to the profession. The salaries paid to those belonging to the nursing profession. This study shows how macro and micro factors affect the health care situation and identifies Empathy as a key factor on which private hospitals score over public hospitals. their status rivals that of doctors. for many nursing is seen as a low paid. Nurses. 4. Citizen charters should be set up to establish accountability. The hospitals should continue to be equipped with modern equipment. They have imported X-ray machines. should be upgraded as Nurse Practioners and treated and paid on par with doctors. 1. 9. and motivate them further. This is because the private hospitals are victims of the import substitution policy that was practiced in the heyday of socialism.

[4]. J. Lexington Books. Berry. Customer Satisfaction.A. 56. No. D. pp.S. H. 3.ibef.aspx healthcare in india.E. MA Hasin.. John Wiley & Sons. (1994). Service Quality to Service Loyalty: A Relationship Which Goes Beyond Customer Services. Caha H: Service Quality in Private Hospitals in Turkey. K. Service Quality Dimensions and Patient Satisfaction Relationships in South Korean: Comparisons Across Gender. 6. C. Andaleep. Determinants of Customer Satisfaction with Hospitals: a Managerial Model. Service Marketing. Pearson Prentice Hall. [12]. www. Vol. pp. [18]. Journal of Economic and Social Research 2007. Linking Perceived Service Quality and Service Loyalty: a Multi-dimensional Perspective..A. and Lehmann. working Paper. S. Fornell. Statistical Measures of Customer Satisfaction for Health Care Quality Assurance. 11/12. (1990). M. (2004).L. [13]. Malhotra. (1984). Websites [15]. [2]. Kandampully.A. V.. J. and Lee. D.. [9]. and Types of Service. A. Vol. Research Methods for Business: A Skill Building Approach. 1. No. 6-13. (2003). 58. Service Management and Marketing. C. An Empirical Test of the Extended Gaps Model of Service Quality. pp. (1998).S..A Study of Service Quality Management on Health Care Industry in Bangalore References: Books: [1]. U. (2005). 181-187. pp.A. MA. Seeluangsawat. 9(1):55-69 Choi. [7].. (1998). International Journal of Health Care Quality Assurance. In www. pp. Boston analytics www. M. May June 2009. 53-66. 9. pp..iosrjournals.K. Vol. No. [3]. Age. Ruyter.and Profitability: Findings from Sweden.L.R. Market Share. irda india. M. European Journal of Marketing. E. and Shareef. GrÖnroos. The relationship between patient satisfaction and inpatient admissions Fornell. [8]. GrÖnroos. Vol. No. A Service Quality Model and its Marketing Implications. Lexington. 431-443 Kurtz. [6]. N. A National Customer Satisfaction Barometer: the Swedish Experience. [16]. [11]. 19. Marketing Science Institute. John Wiley & Sons. Denims J Scotti. Journal of Marketing. [19]. R.www. 18. (1998).. Rodney Ganey & Genevieve www. Anderson. [10]. Total Quality Management. C. Journal of Marketing. Indian healthcare. Dariul J. Marketing Research: An Applied Orientation. pp. and Clow. C.technopak.aspx Journals: [5]. International Journal of Health Care Quality Assurance. 11. Lee. K. Vol. 6-12. (1999). 140-149.. (1990). Bloemer. Sekaran. (1992)..ibef. L. 36-44. p.4. No. Kim. Parasuraman. 3 No. No. Joumal of health can Mangaement. Vol. [17].org 44 | Page . (2001). 1082-1106. C.W. and Wetzels. and Zeithaml. S. Journal of Services Marketing. Cambridge. 6.14. [14]. Messine. European Journal of Marketing. Vol. K.

I. To attain the said objectives. organizations. India. small scale 45 | Page . 1.Institute of Management and Technology Kashipur. Micro credit.  Indirect finance to other priority sectors-loans on scheduled castes and scheduled tribes. Introduction Priority means to give preference and privilege. Preferred sectors and sections are agriculture. The concept of priority sector lending (PSL) is mainly intended to ensure that assistance from the banking system flows in an increasing manner to those persons and sectors of the economy which.  Beneficiaries different rates of interest schemes. export sector is treated as a quasi priority sector.  Education. Uttarakhand. Author has made an attempt through this treatise to highlight these problems and suggested some ideas for effective formation of the scheme. Though public sector banks have progressed remarkably and achieved their targets. private sector banks are lagging behind in this respect.  Small road and water transport operators.IOSR Journal of Business and Management (IOSRJBM) ISSN: 2278-487X Volume 1.1 Vital sectors of the economy getting priority under the scheme of PSL  Agriculture –both direct and indirect finance. PP 45-48 www. Non-performing assets. education. housing finance etc. the scheme is not free from problems. 1. corporations. 1 Abstract: Priority sector lending is a scheme guided by govt. Weaker section include:  Small and marginal farmers with land holding of 5 acres and less.  Landless labourers.  Professional and self-employed persons. Nationalization. have not received adequate support of the institutional finance in the past . and RBI to commercial banks about obligatory deployment of credit to preferred and desired sectors and sections of the economy. Keywords: Credit deployment.  Scheduled castes and scheduled tribes. depressed. through accounting for a significant proportion of the national product.  Small scale industries. Weaker sections. Despite various qualities and goodness. The object behind PSL (Priority Sector Lending) is equitable and sustainable economic development at desired direction. 2012).  Consumption loans. Issue 5 (July-Aug.  Housing loans to scheduled castes and scheduled tribes (SC/ST) and weaker Commercial Banks Financing Priority Sector: An Impetus to Economy (A Study of Problems and Prospects) Dr Kewal Kumar1 and Atul Gambhir2 Principal and Assistant Professor2. village and small industries.  Artisans.Under the new banking policy. and oppressed because of socio-political. and sections of the society are below income persons. small businessman. banks were nationalized in India in1969.2 Weaker sections under PSL The concept of weaker sections refer to all persons who became suppressed. The over all future of this scheme in India is bright but needs a regular review process.iosrjournals. stress is laid on the weaker and under privilege groups and vital sector as priority sectors.iosrjournals.  Setting up of industrial estates. www. vital sectors of the economy.  To boast the country export.  Tenant farmers and share croppers. socio-economic or socio-religious reasons.Now on invent of some new schemes like PSL banks in India are shaping the economy and are providing an impetus to the economy. Since in this scheme banks were entrusted to fulfill some targets and sub-targets of deployment of credit such as 40 per cent for domestic banks and 32 per cent for foreign banks was fixed for priority sector lending of their total advances.  Beneficiaries of the integrated rural development program(IRDP).

 The physically-handicapped people on the modest scale by offering loans for cottage and rural industries and vocations like sewing garments.5 lakh. Objectives Of The Study Our treatise is based on the following objectives  To present an overview on priority sector lending in India. The spread of self-financing institutions (which has less to no funding from the government) for higher education in fields of engineering.  Priority sector lending should constitute 40% aggregate bank credit. The universe of this study is Indian banking sector.  Village artisans in the decentralized sector.Commercial Banks Financing Priority Sector: An Impetus To Economy (A Study Of Problems And Prospects) 1. whichever is lesser. along with the www. IV. co-obligation of parents together with tangible collateral security of suitable value.5 % of the total advances to the small scale industries. Most large public sector and private sector banks offer educational loans.3 Directives issued by RBI The RBI issued certain directives to the banks regarding priority sector lending. The private sector banks can also participate in this scheme on a voluntary basis. Economic survey of India and lead bank report.  To know the various problems and provide some suggestions to strengthen this system of lending and future prospects of priority sector lending in 46 | Page . II.for eight years from the year (s)he starts to repay the loan or for the duration the loan is in effect.2 Education Loans Student loans in India (popularly known as Education loans) have become a popular method of funding higher education in India with the cost of educational degrees going higher. 4. For a loan up to Rs 4 lakh.6400 annual family income in rural areas and Rs. basketmaking etc. the banks are directed by the Reserve bank to finance:  Scheduled castes and scheduled tribes and other engaged on the modest scale in agriculture and allied activities.Under section 80(e) of the Indian income tax act. It came into existence in 1995 started by SBI Bank and after that many banks started offering student loans. coobligation of parents is required and for loans above Rs 4 lakh and up to Rs 7.  People engaged in elementary processing of forest products. The eligibility foe assistance under this scheme is now Rs.  Direct advances to the weaker sections in agriculture and allied activities in rural sector should form at least 50% of the total direct lending to agriculture. village craftsmen and cottage industries should be at least 12. running way side tea stalls. secondary data is used which is taken from the various reports published by Reserve bank of India (RBI) . making reasonably cheap edibles.iosrjournals. Data are classified and tabulated in such manner so that analysis and interpretation can easily be attained. Education loan is becoming popular day by day because of rising fee structure of higher education. In case of loans above Rs 7.either for self or for his/her spouse or children .  To provide an awareness to general public about priority sector lending and its benefits to the weaker section.  To present a conceptual study of various programs and schemes under PSL.7200 per annum per family in urban areas. National bank for agricultural and rural development (NABARD).  The advances to rural artisans. the model education loan scheme allows loan up to Rs 10 lakh for students in India and up to Rs 20 lakh for the students studying abroad. medical and management which has higher fees than their government aided counterparts have encouraged the trend in India. a person can exempt the amount paid against the interest of the education loan . To fulfill the above mention objectives. III. according to new guidelines issued by BBI. at least 40% should be provided to agriculture.5 lakh. co-obligation of parents together with collateral security in the form of suitable third party guarantee is required. banks have to deploy 1% of their total advances to the weaker section of society and further to set aside 40% of their advances meant under DRI scheme for beneficiaries belong in to the scheduled castes and scheduled tribes.  Out of the priority sector advances. Central statistical organization . Under the DRI scheme. Various Credit Schemes Under Priority Sector 4. Methodology And Research Design The nature of our study is perspective and analytical. At present.  To review the present policy framework of priority sector lending.a.1 Differential Rates Of Interest Scheme (DRI) This scheme was launched in India in 1972 for public sector banks to extend bank credit to the weaker section at concessional rate of interest at 4% p.

handlooms and to cooperatives of producers in this sector.iosrjournals. Indirect finance to agriculture shall include loans given for agriculture and allied activities. and whose investment in equipment does not exceed the amount specified in Section I. for taking up agriculture/allied activities. retail trade.2 lakh in urban areas. village and cottage industries. Indirect finance to SSI shall include finance to any person providing inputs to or marketing the output of artisans. 15 lakh for construction of houses by individuals.4 Micro Credit Provision of credit and other financial services and products of very small amounts not exceeding Rs. appended.Commercial Banks Financing Priority Sector: An Impetus To Economy (A Study Of Problems And Prospects) assignment of future income of the student for payment of installments is necessary. will constitute micro credit. either directly or through a group mechanism.6 Small Scale Industries (Direct and Indirect Finance) Direct finance to small scale industries (SSI) shall include all loans given to SSI units which are engaged in manufacture. Assistance up to Rs. Self-Help Groups (SHGs) or Joint Liability Groups (JLGs) of individual farmers without limit and to others (such as corporate. The rate of interest for loans up to Rs 4 lakh is BPLR and for loans above Rs 4 lakh.3 Housing Loans Loans up to Rs.1 lakh in rural and semi-urban areas and up to Rs. 1. V. 4. ANBC: Adjusted net bank credit. processing or preservation of goods and whose investment in plant and machinery (original cost) excluding land and building does not exceed the amounts specified in Section I.20 lakh. 4. 50.7 Small Business / Service Enterprises shall include small business. 4. 47 | Page . Targets/Sub-Targets Set By Rbi The targets and sub-targets set under priority sector lending for domestic and foreign banks operating in India are furnished below Source: Based on RBI’s report on trend and progress of banking in India. 4. semi-urban and urban areas.25 lakh per housing unit given to any governmental agency/ nongovernmental agency (approved by the NHB for the purpose of refinance) for construction/ reconstruction of houses or for slum clearance and rehabilitation of slum dwellers. www. medium and long term loans given for agriculture and allied activities directly to individual farmers. professional & self employed persons. for enabling them to improve their living standards. one per cent more than BPLR is charged by the banks.5 Agriculture (Direct and Indirect Finance) Direct finance to agriculture shall include short. small road & water transport operators and other service enterprises as per the definition given in Section I and other enterprises that are engaged in providing or rendering of services.(excluding loans granted by banks to their own employees) and loans given for repairs to the damaged houses of individuals up to Rs. 4.000 per borrower to the poor in rural. partnership firms and institutions) up to Rs.

Commercial Banks Financing Priority Sector: An Impetus To Economy (A Study Of Problems And Prospects) Table-1: Deployment of Bank Credit to Priority Sector in India Source:RBI’s report on trend and progress of banking in India VI. suggestion is. public sector banks have progressed well in priority lending but their qualitative aspect is to be evaluated. Banking. cottage industries. [2]. 6. etc. and Anubumani. for example 40% of total bank credit to priority sector and other sub-targets. the classification of priority sector advances has remain broad-based.4 Efficacy. Money. some basic problems and shortcomings are found in this system during the course of study.There is a time need to review the target fixed at the inception of scheme. bad debts and NPA have been a serious problems faced by the bank in respect of advances made to the weaker sections of society private sector banks are lagging behind in PSL progress. For instance over dues.It is necessary to identify appropriate sectors with in the priority sectors on a rational basis. RBI Internal Working Group (2005) Priority Sector [5]. [6]. M and Kumar. RBI. Finance India. For under recovery of dues and NPA (Non Performing Assets) in case of weaker section advances. so that even big borrower could avail of the benefits of priority treatment provided by the banks. Statistical Tables Relating to Banks in India (Various Issues). the bank should also examine the viability of the marketability point of view if not so this loan will poses the problem of recovery for the banks. So that preferential treatment can be availed by defined and targeted persons. Niranjana. as in this model recovery rate is nearly 95%. 6.V 2002 ‘Social Objectives And Priority Sector Lending. 2007.5 Need to re-look at target.6 The problem of bad debt. Banks are now deploying credit in desired direction and providing an impetus to the rural economy. Eligibility for SSI and SSB and weaker section should redefined on rational basis. D. Sooden. 6. Future Prospects And Conclusion- Quantitatively. Finance India’ X (2):389-393. 6. Deep And Deep Publications. Suggestions. At present time it should be revised on rational basis. drinking water and primary education projects should be preferred under priority sector lending and special sub-targets be set for these the existing system. keeping an eye on the fulfillment of the stipulated targets.. 6. VII. Future prospect of the PSL is bright in India. – A special model like micro financing (Bank linkage self help group) be formed. Mithani. Mumbai. URL: (www. 6. Projects under PSL should effectively checked and evalued for the porpuse of viability and efficacy. S. RBI’s report on trend and progress of banking in India (various issues). S. [4]. September.3 Need to examine the viability of project under priority 48 | Page . PP-231. Reserve Bank of India. Trade And public Finance’ – Himalaya Publishing House Bombay. Mumbai.2 Need to identify priority sectors appropriately. Problems And Shortcoming Of Psl In India Despite a remarkable growth of priority sector lending by the commercial banks in recent years. electricity.1996.iosrjournals.G. www.rbi.M. Priority Sector Lending in Post Reform Period. Overall impact of priority sector lending scheme is positive. [3]. There is a need to revise time to time the targets and sub-targets set by RBI for this scheme. Projects for small scale for infrastructure development in villages like road construction.Another problem is the problem of bad debt arising from indiscriminate lending by banks.There is always the problem of ensuring the effective end use of the loans given to the priority sectors.’Role of Commercial Banks’ Lending to Priority Sector in Gujarat-An Evaluation. References[1]. S. Banking And Financial Sector Reform In India’. ‘International.1 Unduly broad based classification of priority sector. Rural Planning and Credit Department Central Office. Patel. XXI (4): 1389-1404 [7].while granting credit to artisans. December.

The whole concept of shopping has altered in terms of format and consumer buying behavior. A service quality can be the cornerstone to retailing success retailers need to constantly evaluate their service quality through the use of a reliable scale. (1988. convenience Competence were positively related to customer satisfaction. 3) defined service quality as “the consumer‟s judgment about a product‟s overall excellence or superiority”.org Service Quality in Super Markets: A Study of Consumers Satisfaction in Apparel Retailing 1 1 2 Arun Kumar .. An all-embracing definition of service quality is notoriously difficult to produce. responsiveness. delivering quality service means confirming to customer expectations on a consistent basis”. Manasagangothri. customers expect value for money in terms of product quality.S. 16) defined perceived service quality as “a global judgment. what they feel a service provider should offer rather than would offer. customer knowledge. the latter is understood in a conative and action sense.iosrjournals. p. Manasagangothri. social and www. Indian apparel retailing is the country‟s largest opportunity for the organized retailing after food retailing. Apparel retailing in Mysore is poised to reach its height with recent opening of supermarkets. Parasuraman et al. Review of literature In service literature. convenience (dependent dimension) and competence. The finding showed that the dimensions of service quality such as tangibles. relating to the superiority of the service”. Research to date. Zeithaml (1988. Customer expectations may be defined as the “desires and wants of consumers” i. nutritional value and service quality. which contributes toward achieving customers‟ ultimate satisfaction. it is more likely that customer satisfaction and retention will occur. Retailing in India is gradually inching its way toward becoming the next boom industry.Manjunath3Anitha Thimmaiah Research scholar. apparel retailing. customer satisfaction.G. Kotler and Armstrong (1996. The data was collected from 200 respondents through structures questionnaire by using five point likert scale and was analyzed using one sample t test and multiple regression. service quality is usually defined based on consumers‟ assessment. If these attributes are met in relation to the customers‟ perceived risk. It is clear that defining service quality is an important step toward the development of a solid foundation for this study. 2Dr. University of Mysore.e. This. ushering in a revolution in shopping in India II. more sophisticated than they expect service quality apart from the quality of merchandise purchased. Mysore-570006 India Associate professor.J. Vidyavarthaka college. described it as: the ability of the organization to meet or exceed customer expectations. and identify customers‟ requirements and to try to meet them in order to provide a high standard of service quality. BIMS. Bernardo Balboni (2011) in their article demonstrates the crucial role of retail service quality as a key activator in the formation of customer loyalty to the store. In difficult competitive. BIMS. Moreover. 42) defined service quality as “a measure of how well the service level delivered matches customer expectations. in turn. being in line with the service literature. University of Mysore. The management should focus on competence dimensions to be ahead of the competitor Keywords: service quality. discrete encounters and to relationship. Fashion consumers today are better informed. Introduction Customer satisfaction has received considerable attention in recent years. it provides useful information on the relationship between service quality and loyalty in retailing. Parasuraman. India 3 Associate Professor. p. India Abstract: The purpose of the study is to determine the consumer satisfaction of service quality offered at supermarket in Mysore city.IOSR Journal of Business and Management (IOSRJBM) ISSN: 2278-487X Volume 49 | Page . PP 49-53 www. entails organisations and firms to investigate. Mysore. Issue 5 (July-Aug. customer knowledge. this study looks into service quality as the standard of excellence toward fulfilling customers‟ requirements. Therefore.. p. The present study is the first to apply a specific RSQS scale to the Italian national context. G9) defined service quality as "the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs". (1985. The results prove that customers consider retail service quality as a second-order dimension and recognize the main contribution of physical aspects and reliability first-order dimensions. Service quality is an elusive concept and there is considerable debate in the literature about how best to conceptualize this phenomenon. explore. or attitude. Branded apparel accounts for only 20 percent of the total apparel market. Mysore-570006. Parasuraman et al.iosrjournals. Daniella Ryding(2011) suggested the relative importance of service quality across two grocery store formats. indicates that within the grocery sector. p. The five dimensions such as tangibles. The concept of customer satisfaction has relevance to both single. 2012). Mysore city I.

namely the Nordic School. speed in handling complaint.. product price Customer knowledge. Communication system. and other post-purchase activities that are beneficial to the understanding. with more customers expecting higher levels of service provision across a wider range of store formats. for example. Objective of the study The objective of the study is to determine whether the dimensions of service quality significantly affect customer satisfaction in apparel retailing. distinctions in relation to customers‟ expectations between the levels of service provided across quality-led stores. 1) 2) 3) 4) 5) Hypothesis Ho-The tangibles have significant positive impact on customer satisfaction Ho-The customer knowledge have significant positive relationship on customer satisfaction Ho-The responsiveness have significant positive impact on customer satisfaction Ho-The convenience have significant positive relationship on customer satisfaction Ho-The competence have significant positive impact on customer satisfaction VI. Technical-Functional Quality Model (Gronroos. compared to discounters. Customer satisfaction is proposed to be the key objective of both defensive and offensive marketing strategies aimed at retaining existing customers and gaining new customers. product knowledge of employee.. product availability. Research findings demonstrate that despite the fact that consumer expectations are rising in relation to the overall shopping experience. IV.self confidence of employees. 50 | Page . services. In a literature review study. V. Satisfaction results from specific exchange and consumption transactions. operating hours. future choice behaviours.Service Quality In Super Markets: A Study Of Consumers Satisfaction In Apparel Retailing economic circumstances.speed in solving problem. Methodology The relevant data for the study has been collected from both primary and secondary sources. and the North American School (Gap Analysis School). www. Employee behavior. It has a positive impact on consumers' attitudes toward products. courteous Dependent variable– Convenience . A sample of 200 respondents was selected for the study. some sources indicate that there will be a trading down in customer shopping habits. the Holistic School.There are a number of conceptual models that have been developed by various researchers and scholars world-wide to investigate the service quality concept. Service oriented firms tend to focus on consumer satisfaction as a way to differentiate themselves from their competitors with the delivery of high quality service. and evolves into a more global evaluation across multiple transactions (Anderson eta). these models have been aimed to be adopted by service organisations as a tool to assist in quality improvement programs. 1984). after sales service 1) Demographic Analysis of demographic information revealed that 40 percent customers were young and aged between 19 years to 25 years and 46 percent of the respondents were males. in the current service marketing literature there are three key schools of service quality modeling. (2005) presented a list of key service quality models including. Around 44percent of the sample respondents had graduation and 62 percent were employed. compared to a discounter. accurate delivery service. Competence. This study examines the relative importance of service quality for a quality-led retailer. Data collection and analysis Independent variables Tangibles – shop position. Seth et al. performing the right service at the first time.Advertisement. willing to help Responsiveness. individual attention. Simple random sampling is used to collect the information regression analysis was used in this research the data was collected through structured questionnaire by using five point likert scale. Generally. Research methodologies used in the study are descriptive methods. out of the total sample 36 percent of the respondent‟s annual income was in between 20000 to 25000. Customer satisfaction has been described as one of the priorities of managers of service or product related organizations. is still evident. At the same time. firms. These conceptual models along with other models have contributed to the development of various schools of thought of service quality. 1985. Formal Models of Service Quality .iosrjournals. including the discounters. Gap Model and SERVQUAL Model (Parasuraman et al. 1988). transaction method. decoration.

5908 T TANGIB 89. the Hypothesis H0 ere are no significant effects of customer knowledge on customer satisfaction at supermarket in Mysore is rejected.10885 200 10. (2.05 for all the select policy factors under study One-Sample Statistics N COMPETEN 200 CE Mean 8. Error Mean .Differenc the Difference tailed) e Lower Upper .There are significant effects of tangible on customer satisfaction at supermarket in Mysore is not rejected since one sample t-test successfully revealed a statistically significant values for policy factors.000 8. Mean values fall in positive side of rating (less than 3).iosrjournals. Mean values fall in positive side of rating (less than 3). tcal value > ttab value and p-value < α = 0. (2.40500 8.05 for all the select policy factors under study One-Sample Statistics N CUSTOMER KNOWLEDGE Mean Std.48052 Std.There are significant effects of customer knowledge on customer satisfaction at supermarket in Mysore is not rejected since one sample t-test successfully revealed a statistically significant values for policy . and Ha .47569 One-Sample Test Test Value = 3 Mean 95% Confidence Interval of the Sig.8200 1. Error Mean .940 LE df 199 Based on the results of the One sample t-test analysis at 95% confidence level. Deviation Std. tcal value > ttab value and pvalue < α = 0. the Hypothesis H0 There are no significant effects of tangible on customer satisfaction at supermarket in Mysore is rejected.10469 One-Sample Test Test Value = 0 95% Confidence Interval of Mean Sig. and Ha .6114 51 | Page t Df COMPETEN 80.Differe Difference tailed) nce Lower Upper .000 9.3850 1.Service Quality In Super Markets: A Study Of Consumers Satisfaction In Apparel Retailing 2) One sample t –test Analysis One-Sample Statistics N TANGIBLE 200 Mean Std.1792 0 9. Deviation Std.3850 9.4050 Std.286 199 CE www.1986 8. Deviation 1. Error Mean .10435 12.53930 Based on the results of the One sample t-test analysis at 95% confidence level.

iosrjournals. Regression Analysis www.96 1. the Hypothesis H0 There is no significant influence of convenience on customer satisfaction at supermarket in Mysore is rejected.There is a significant influence of convenience on customer satisfaction at supermarket in Mysore is not rejected since one sample t-test successfully revealed a statistically significant values for physical 52 | Page .12697 Based on the results of the One sample t-test analysis at 95% confidence level. and Ha . the Hypothesis H0 There is no significant influence of responsiveness on customer satisfaction at supermarket in Mysore is rejected.9950 2.21120 Based on the results of the One sample t-test analysis at 95% confidence level. Mean values fall in positive side of RSQS rating (less than 3). the Hypothesis H0 There is no significant influence of competence on customer satisfaction at supermarket in Mysore is rejected. Deviation Std.05 for all the select physical aspects under study VII.There is a significant influence of responsiveness on customer satisfaction at supermarket in Mysore is not rejected since one sample t-test successfully revealed a statistically significant values for physical aspects. tcal value > ttab value and pvalue < α = 0. and Ha . Deviation Std.79570 00 . tcal value > ttab value and p-value < α = 0. Mean values fall in positive side of RSQS rating (less than 3). and Ha .15636 200 14. Error Mean . tcal value > ttab value and p-value < α = 0.There is a significant influence of competence on customer satisfaction at supermarket in Mysore is not rejected since one sample t-test successfully revealed a statistically significant values for physical aspects.05 for all the select physical aspects under study One-Sample Statistics N RESPONSI 200 VENESS Mean Std. Error Mean 14.05 for all the select physical aspects under study One-Sample Statistics N CONVENIENCE (DEPENDENT) Mean Std. Mean values fall in positive side of rating (less than 3).Service Quality In Super Markets: A Study Of Consumers Satisfaction In Apparel Retailing Based on the results of the One sample t-test analysis at 95% confidence level.

D. Service Quality: A Holistic View. Retail Grocery Industry. The next dimension was competence the β value was . [5].. Gustavsson (Eds. 11.). (1999). A Dynamic Process Model of Service Quality: From Expectations to Behavioural Intentions.307 and the p value was . (1991). Improvement in customer satisfaction would mean that it is gaining competitive advantage. Journal of Retailing. 49 (Autumn). E.. Cottrell.).W. European Journal of Marketing.H.K.004 it shows that customer knowledge also positively influence overall satisfaction of supermarket. Bibliography [1]. 62 (Spring). The Linkage Between Strategy. A Conceptual Model of Service Quality and Its Implications for Future Research.164 and significance p-. Journal of Marketing Research.Hence there is a significance difference between tangible and customer satisfaction. Tangible. [3]. & Berry.221 it implies that there is 22% variance by service quality factor on customer satisfaction. L. Edvardsson & B. (1986). An Environmental Model of Performance Measurement in a Chain of Supermarkets. V. (1973). 1082-1106. 12-40. H. 3-12.013). 53 | Page . Strategies of Japanese Supermarkets in Hong Kong. (1991). [2]. J. From the coefficient table it was revealed that tangible of supermarket is (β-. Retail Business are Service Businesses. (1990). (1993). [6]. 385-397 Parasuraman. The adjusted R square shows the amount of variance explained by independent variable on dependent variable. International Journal of Retail and Distribution Management. L. & Thomas. Y. VIII. Gummesson. 56(July). S. R. J.A.000 it shows that the competence aspect also have positive influence and overall satisfaction of retail stores.L. www. Ruyter. Strategic Groups. Gummesson. J. The R square is . Service Quality: Multidisciplinary and Multinational Perspectives (pp. L. In S. An Evaluation of the SERVQUAL Scales in a Retail Setting. M. The study revealed that the management needs to improve service quality in areas of responsiveness.195 and the p value is . A. M. B. V. W. Zeithaml.. & Berry. 33(11/12). Provo: Association for Consumer Research. 41-50. Kawaharha. Advances in Consumer Research (Vol.. In terms of customer knowledge the β value is .iosrjournals. SERVQUAL: A Multiple Scale for Measuring Consumer Perceptions of Service Quality. C. Strategic Management Journal. [9]. and Performance in the U. Brown. Measuring Service Quality: A Reexamination and Extension..Service Quality In Super Markets: A Study Of Consumers Satisfaction In Apparel Retailing The above results indicate that p value is . [11]. Staelin. (1988). P. (1994). [7]. 22(8). V. & Lamb. Conclusions The measurement of service quality has become a significant marketing tool for retail stores that wish to develop a competitive advantage by learning about their customers„consumption experiences validating the implementation of the ‚retail service quality and by providing empirical evidence of how retail service quality dimensions leads to customer satisfaction in this setting. Ko de & Wetzels. In R. Responsiveness does not have significant relationship with the overall satisfaction of retail store.J. [10]. Bloemer. Cronin. Journal of Marketing. 55-68 Finn.000 hence the regression model was fit.W. 3-22). Parasuraman. (1992). Kalra. E. Linking Perceived Service Quality and Service Loyalty: A Multi -Dimensional Perspective. [8]. customer knowledge. Boulding. Journal of Retailing. 51-63. A. Solomon (Eds. [4]. competence have a significant impact on overall satisfaction of supermarket therefore we reject null hypothesis of all the three dimensions. Holman & M.L. 64 (Spring). The study was designed to know that the dimensions of service quality that have significant effect on customer satisfaction. 3-6. 18). M. & Zeithaml. (1985). A.A. 49(3). Journal of Marketing. Lewis. Journal of Retailing.W. Vol. & Speece. The result showed that all the four dimensions have the significance effect on the customer satisfaction and the alternative hypothesis was not rejected. & Taylor. 30.A.R. 7-27. Berry.