ASSIGNMENT 1

SERVICE QUALITY & CUSTOMER SATISFACTION SURVEY IN INDIAN BANKS

A brief survey was conducted among bank account holders on quality of service
provided by banks. 15% of respondents are account holders in Public Sector Banks and the
balance are account holders in Private Banks.
A questionnaire with 35 questions was used to take the responses regarding
perceptions of Service Quality, Customer Satisfaction and overall experience of customers.
Service Quality is evaluated through the R.A.T.E.R. model comprising of five dimensions of
Service Quality Reliability, Assurance, Tangibles, Empathy and Responsiveness. A summary of
questions and the constructs measured are provided below:
Question
numbers
1 to 3

Constructs measured

Brief explanation

Basic demographics

46

Bank details

Overall Experience

8 11

Tangibles

12 14
15 17
18 21
22 24
25 27
28 30
31 33
34 & 35

Reliability
Responsiveness
Assurance
Empathy
Credit Card
Internet banking
Mobile banking
Customer Satisfaction

Name of the bank and length of relationship [Less than 3

years 1; 3 6 years 2; 6 9 years 3; 9 12 years 4; >
12 years 5]
Ten point scale measuring Net Promoter Score
Measures the physical aspects of the branch in a five point
scale
Measures the reliability of banks service
Customer friendliness and quickness of response
Competence of service providers and courteousness
Customer centric behavior of employees
Evaluation of credit card offering
Evaluation of internet banking
Evaluation of mobile banking
Perception of customer satisfaction

Assignment
1.

Clean the data and organize the responses branch-wise.

a. Measure the overall average score of each dimension for Indian banks.
b. Measure average scores of each dimension bank-wise
c. Create a dash-board for (a) and identify top-two box score dimensions and bottomtwo box score dimensions for Indian banks

d. Construct weights of each dimension by completing a regression equation with

Customer Satisfaction as Dependent variable and all other variables except overall
experience as independent variables.
e. Based on the weights calculated in (d) above, evaluate the score for each bank and
rank order them in terms of overall service.
2.
3.
4.

Evaluate the Net Promoter Score for each bank. Which bank provides the best
experience?
What are the measures you would adopt to improve the service provided by the worst
performing bank?
What are the measures you would adopt to improve the services of those dimensions in
which the best performing bank is doing bad (bottom two box score)?