RESEARCH PROJECT SYNOPSIS

ON
Measuring Service Quality in Regional Rural Bank
In partial fulfilment of the requirement for the award of the Degree

MASTER IN BUSINESS ADMINISTRATION

(2016-2018)

Submitted To- Submitted By-

MR. Parveen Kumar Payal

16001532039

M.B.A. (3rd Semester)

DEPARTMENT OF MANAGEMENT

DEENBANDHU CHHOTU RAM UNIVERSIY Of

SCIENCE AND TECHNOLOGY, MURTAHL

(SONIPAT)
 Project Synopsis 2016-2018

Semester-3rd

NAME: Payal

ROLL NO: 16001532039

PROJECT TITLE: Measuring Service Quality In Rural Bank

SUBJECT AREA: Finance

NAME OF THE GUIDE: MR. Parveen Kumar

SIGNATURE OF THE STUDENT:

SIGNATURE OF THE GUIDE:

For Office Use Only

Synopsis Guide

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Date:
 Introduction-

1.1 Bank
1.1A. Introduction to bank
The Indian economy is emerging as a one of the strongest economy of the world with the GDP growth
of more than 8 % every year. A strongest banking industry is important in every country and can have a
significant affect in supporting economic development through efficient financial services. Banking
sector play a vital role in growth and development of Indian economy. After liberalization the banking
industry in India under gone major changes. The process of liberalization and globalization has strongly
influenced the Indian banking sector. A stable and efficient banking sector is an essential precondition to
increase the economic level of a country. Liberalization policy introduced in the banking sector in India
led to consolidated competition, efficient allocation of resources and introducing innovative methods for
mobilizing of saving. The ability of banks to analyze its financial position for improving its competitive
position in the market place. Most banks in India are currently focusing an expanding their service
network. A growing Indian economy, expanding their various segments. After the recommendations of
Narshinham Committee report with the entry of many private players. Indian banking industry has
transformed into a customer oriented market. It now consists of multiple products and customer groups
and various channels of distribution. It is well known fact that an effective and efficient banking system
is important for the long-run growth and development of the economy. So, there is needed to make a
comprehensive study into performance of banks in India. (by shodhgang.inflibnet.ac.in)
A Banking Sector performs three primary functions in economy, the operation of the
payment system, the mobilization of savings and the allocation of saving to investment products.
Banking industry has been changed after reforms process. (by shodhgang.inflibnet.ac.in)
The Government has taken this sector in a basic priority and this service sector has been
changed according to the need of present days. Banking sector reforms in India Strive to Banking
industry has been changed after reforms process. The Government has taken this sector in a basic
priority and this service sector has been India Strive to Banking industry has been changed after reforms
process. (by shodhgang.inflibnet.ac.in)
The Government has taken this sector in a basic priority and this service sector has been
changed according to the need of present days. Banking sector reforms in India Strive to increase
efficiency and profitability of the banking institutions as well as brought the existing banking institutions
face to face with global competition in globalization process. Different type of banks differs from each
other in terms of operations, efficiency, productivity, profitability and credit efficiency. Indian banking
sector is an important constituent of the Indian Financial System. The banking sector plays a vital role
through promoting business in urban as well as rural area in recent year, without a sound and effective
banking system, India can not be considered as a healthy economy. The main objective of this study to
understand of how a bank is able to use the available resources to increase the profitability and
performance of banks and banks in India are performed well or not. (by shodhgang.inflibnet.ac.in)

1.1.B. Origin of the Word Bank’s:

There seems no uniformity amongst the economist about the origin of the word ―”Bank” According to
some authors the word ―”Bank”, itself is derived from the word ―”Bancus” or ―”Banque” that is a
bench. The early bankers, the Jews in Lombardy, transacted their business on benches in the market
place, when, a banker failed, his ’Banco’ was broken up by the people; it was called ‗Bankrupt‘. This
etymology is however, ridiculed by mcleod on the ground that ―”The Italian Money changers as such
were never called Banchier in the middle ages.” (by shodhgang.inflibnet.ac.in)
It is generally said that the word "Bank" has been originated in Italy. In the middle of
12th century there was a great financial crisis in Italy due to war. To meet the war expenses, the
government of that period a forced subscribed loan on citizens of the country at the interest of 5% per
annum. Such loans were known as 'Compare', 'minto' etc. The most common name was "Monte'. In
Germany the word 'Monte was named as 'Bank' or 'Banke'. According to some writers, the word 'Bank'
has been derived from the word bank. (by shodhgang.inflibnet.ac.in)
It is also said that the word 'bank' has been derived from the word 'Banco' which means a
bench. The Jews money lenders in Italy used to transact their business sitting on benches at different
market places. When any of them used to fail to meet his obligations, his 'Banco' or banch or bench
would be broken by the angry creditors. The word 'Bankrupt' seems to be originated from broken Banco.
Since, the banking system has been originated from money leading business; it is rightly argued that the
word 'Bank' has been originated from the word "Banco”. Whatever be the origin of the word ‘Bank‘ as
Professor Ram Chandra Rao says, ―It would trace the history of banking in Europe from the middle
Ages. (by shodhgang.inflibnet.ac.in)
Today the word bank is used as a comprehensive term for a number of institutions carrying
on certain kinds of financial business. In practice, the word 'Bank' means which borrows money from
one class of people and again lends money to another class of people for interest or profit. (by
shodhgang.inflibnet.ac.in)
 Actually meaning of bank is not specifies in any regulation or act. In India, different people have
different type of meaning for bank. Normal salary earner knows means of bank that it is a saving
institution, for current account holder or businessman knows bank as a financial institutions and many
other. Bank is not for profit making, it creates saving activity in salary earner. (By
shodhgang.inflibnet.ac.in)

1.1. C. Meaning of Bank:

A Bank is an institution which accepts deposits from the general public and extends loans to the
households, the firms and the government. Banks are those institutions which operate in money. Thus,
they are money traders, with the process of development functions of banks are also increasing and
diversifying now, the banks are not nearly the traders of money, they also create credit. Their activities
are increasing and diversifying. Hence it is very difficult to give a universally acceptable definition of
bank. "Banking business" means the business of receiving money on current or deposit account, paying
and collecting cheques drawn by or paid in by customers, the making of advances to customers, and
includes such other business as the Authority may prescribe for the purposes of this Act”. (by
shodhgang.inflibnet.ac.in)

1.1. D.Definitions of Bank:

 Indian Banking Regulation act 1949 section 5 (1) (b) of the banking Regulation Act 1949 Banking is
defined as. ―
“Accepting for the purpose of the landing of investment of deposits of money from public repayable
on demand or other wise and withdraw able by cheques, draft, order or otherwise.”
 According to Oxford Dictionary-

“ Bank is an establishment for custody of money received from or on Behalf of its customers. Its

essential duty is to pay their drafts unit. Its profits arise from the use of the money left employed them.”
1.2. Regional Rural Bank

1.2. A. Introduction:
Regional Rural Banks have been in existence for around 32 years in the Indian financial scene. Inception
of Regional Rural Banks may be seen as a unique experiment as well as experience in improving the
efficacy of rural credit delivery mechanism in India. Keeping in view the local peculiarities, an effort
was made to integrate commercial banking within the broad policy framework towards social banking
through joint shareholding of Central Government, the Concerned State Governments and the
Sponsoring Bank. The genesis of the Regional Rural Banks may be traced for the need for a stronger
institutional arrangement for providing rural credit. The institution of Regional Rural Banks (RRBs) was
created to meet the excess demand for institutional credit in the rural areas, particularly among the
economically and socially marginalized sections. Although the cooperative banks and the commercial
banks had reasonable records in terms of geographical coverage and disbursement of credit, in terms of
population groups the cooperative banks were dominated by the rural rich, while the commercial banks
had a clear urban bias. (by shodhgang.inflibnet.ac.in)
The Banking Commission (1972) recommended to establish an alternative institution for rural
credit and ultimately Government of India established Regional Rural Banks – a separate institution
basically for rural credit on the basis of the recommendations of the Working Group under the
Chairmanship of Sh. M. Narashimham. In order to provide access to low-cost banking facilities to the
poor, the Narashimham Working Group (1975) proposed the establishment of a new set of banks, as
institutions which “combine the local feel and the familiarity with rural problems which the cooperatives
possess and the degree of business organization, ability to mobilize deposits, access to central money
markets and modernized outlook which the commercial banks have”. (by shodhgang.inflibnet.ac.in)
Subsequently, the Regional Rural Banks were setup through the promulgation of RRB Act
of 1976. The RRBs Act, 1976 succinctly sums up this overall vision to sub-serve both the developmental
and the redistributive objectives. The RRBs were established “with a view to developing the rural
economy by providing, for the purpose of development of agriculture, trade, commerce, industry and
other productive activities in the rural areas, credit and other facilities, particularly to small and marginal
farmers, agricultural laborers, artisans and small entrepreneurs, and for matters connected therewith and
incidental thereto”. (by shodhgang.inflibnet.ac.in)
Regional Rural Banks were supposed to evolve as specialized rural financial institutions for
developing the rural economy by providing credit to small and marginal farmers, agricultural laborers,
artisans and small entrepreneurs. Their equity is held by the Central Government, Concerned State

Government and the Sponsor Bank in the proportion of 50:15:35 respectively. The mandates of these
rural financial institutions were to:
(a) Take banking to the doorsteps of the rural masses, particularly in areas without banking facilities;
(b) Make available cheaper institutional credit to the weaker sections of society, who were to be the
only clients of these banks;
(c) Mobilize rural savings and canalize them for supporting productive activities in the rural areas;
(d) Generate employment opportunities in the rural areas and
(e) Bring down the cost of providing credit in rural areas. (by shodhgang.inflibnet.ac.in)

1.2. B. Meaning of Rural Banks:

Rural banking traditionally has serviced the financial needs of people living in remote areas of the
United States. Unlike banks located in more populous urban areas, rural banks may have relatively small
and specialized customer bases spread over a far greater geographical area. Examples include banks
with an agricultural focus or those serving a small rural community. (by bizfluent.com)

1.2. C.Rural Bank Services :

People living in rural areas need the same banking services as those living in larger towns and cities. A
community bank in a rural area might offer regular retail banking services, including loans and
mortgages, that let personal and business customers manage their banking needs close to home.
Depending on their location and the local business focus, some rural banks develop specialty
commercial skills in areas such as agribusiness. For example, some operate solely within the Farm
Credit System -- a network of borrower-owned lending cooperatives and specialized service
organizations -- specializing in business credit and funding for farming, ranching and other agricultural
customers. (by bizfluent.com)

1.2. D. Rural Bank Performance:

Loans made by rural banks are less likely to default than those made by urban banks of a comparable
size, according to a 2012 report on Small Business Administration loans. Many rural banks also build
better long-term relationships with their customers, creating "social capital" within small communities.
In addition, many develop a detailed understanding of local business conditions. In more remote areas,
one bank may be the only option available to residents. (by bizfluent.com)

1.2. E. Rural Bank Issues:

As rural areas lose residents to small towns, suburbs or big cities, rural banks are impacted. Declining
customer numbers can affect the bank's financial performance because there is less need for credit and
deposit services, which leads to less income. In addition, rural banks may be heavily dependent on a
specific local business sector, such as agriculture. Problems within the sector could influence the bank's
business and profitability. Finally, rural banks in the 21st Century must compete against larger banks, as
well online banks, that give customers remote access to services. This removes some of the need for
face-to-face transactions at local rural bank branches. (by bizfluent.com)

1.2. F. Rural Bank Adapting to New Technology:

Some rural banks are adapting to modern industry trends by expanding their technology and services.
For example, an April 2014 article in "USA Today" reports that one of the smallest banks in Iowa "was
among the first in the country to deploy a new kind of ATM that uses a real teller, available by video."
Other banks have adopted a virtual teller system to replace staffed branches or to supplement services.
This allows customers to talk to a teller in a centralized call center through a video link. (by
bizfluent.com)
 1.3. Measureing of Service Quality

1.3. A. Introduction

Twenty first century has spread a technological revolutionary wave in India. With upcoming wireless
communication technologies people are becoming more & more mobile addict. The booming revolution
in Information Technology sector has pushed the India’s telecom market significantly. Since past few
years consumers prefer wireless mode of telephone services to wire line services. Mobility has become
an integral part of customer’s life. India has shown tremendous growth in past few years in terms of
cellular services. As per the survey report conducted by Voice & Data by the end of Feb 2008 the
mobile subscribers number has reached to 246.6 mn compared to wire line services, which is only 40
mn. in numbers . Invention of Cell phones is a major improvement over the telecommunications
technology of the past, and it has now become an essential commodity in today’s busy life. Cell phones
have become the necessity in today’s competitive environment to meet the emerging global economy.
This research study focuses on the service quality of cellular mobile services in Pune & Pimpri-
Chinchwad area. (by shodhgang.inflibnet.ac.in)

1.3.B. Services Concept:

Service is a patch up activity to fulfill some one’s need in the market. Service is some thing, which can
be experienced but cannot be touched or seen. Services offered by service providers cannot be seen &
touched, as they are intangible activities. (by shodhgang.inflibnet.ac.in)
 By Kotler, Armstrong, Saunders and Wong
“A service is any activity or benefit that one party can offer to another which is essentially intangible
and does not result in the ownership of anything.”
 By Christopher Lovelock
“Services are economic activities that create value and provide benefits for customers at specific times
and places as a result of bringing about a desired change in or on behalf of the recipient of the service.”
The basic difference between service & product is that services are intangible but products are tangible
and are required to follow some standardized procedures. Service user can specify about that particular
service satisfaction only after availing it for some period of time. Some of the common service areas are:
Retailing, Transportation, Cell phones, Education, Health & hospitality Services, BPO and many more.
 1.3.C. CUSTOMER EXPECTATION AND PERCEPTION TOWARDS SERVICE:
As per the gap model given by Persuraman & Zeithaml there exists a gap between the customer
perception & customer expectation . This gap is called as the customer gap. (by
shodhgang.inflibnet.ac.in)

Customer Expectation represents the actual expected service & Customer Perception revels the actual
received service .
Customer expectations are the standards against which the perceived services are checked in order to
assess the quality of a service. This basically gives what is expected & what is actually received. If any
difference exists between the expected service and actually received service then that difference is called
as a gap, which needs to be reduced. (by shodhgang.inflibnet.ac.in)
Expected Service (Customer Expectations)
↕ Gap between expected service & received service
(customer gap)
Perceived Service (Actually Received Service)
“ The service gap between what customer expects & what customer receives”
 Relevancy of study

Due to following reasons I have opted for the topic

“Measuring Services Quality In Rural Bank”

A. Tangibles-
Includes Physical Evidence of the service they are-
 Physical facilities
 Appearance of the personnel
 Tools and equipments used to provide the service
 Physical representation of the service
 Other customers in the service facility 30

B. Responsiveness-
It concerns with the willingness or readiness of employees to provide service. The measure
include.
 Timeliness of the service
 Mailing transaction slips immediately
 Efficient customer support
 Giving prompt service .

C. Reliability
It involves consistency of performance and dependability. The important measures of reliability
are
 Performance of the initial service
 Accuracy in billing
 Keeping records correctly
 Performing the service punctually
D. Assurance
Assurance includes
 The knowledge of Employees
 The courtesy of contact person
 Their ability to convey trust and confidence
 Assuring the customers that the problem will be solved

E. Empathy
The important measures of Empathy are
 Learning customer’s specific requirement
 Providing individual attention
 Consideration for customers.
 Review Of Literature

Pallavi Rajain (2015)

Service quality has been defined as the outcome of an evaluation process where the consumer compares
his expectations with the service he has received or the difference between expected service and
perceived service. In today's increasing competitive atmosphere providing service quality is important
for any service industry. Here health care services have been studied as they have a distinct position
amongst other services due to highly involving and risky nature of services and the general lack of
expertise possessed by consumers. For comparative purposes, five service quality dimensions were used
i.e. tangibility, reliability, assurance, responsiveness and empathy. The 22 items SERVQUAL scale
based on gap model proposed by Parasuraman, Zeithmal and Berry was used. In this study a sample size
of 100 was taken using quota sampling. Gap analysis was applied to find the gaps between expected and
performed service in private hospitals of NCR and t-test was applied using SPSS to find difference
between male and female perception and expectation. It was found that maximum gaps existed in
dimensions of reliability and empathy. Also it was seen that though the males and females differed in
their perception about service quality of hospitals they had similar views regarding expectations.

Tripathi (2013)

“An Empirical Study - Awareness of Customers on Service Quality of Public Sector Banks in Varanasi”
studied the awareness of the customer on service quality and evaluated the quality of service in selected
private sector banks in Varanasi district. He also determined the gap between customer expectation and
perception. The data was collected for the study based on convenience and administered a modified
SERVQUAL questionnaire. He found that customers‟ expectations of service quality in banks were high
and perceived quality of service was quite lower across public sector banks. For public sector banks the
most prominent gap was in reliability, empathy, responsiveness dimension of the service quality
Doddaraju (2013)

“A Study on Customer Satisfaction towards Public and Private Sector Banking Services [with Special
Reference to Anantapur District of Andhra Pradesh]” studied the banking services and customer
satisfaction of public and private sector banks in Anantapur district and to know in which service quality
dimension the bank was performing well and in which dimension it required improvement. Satisfaction
level with regard to the PSU courtesy shown by bank staff at the counter was very low. As majority of
private banks doing aggressive marketing they have succeeded in attracting more customers, but PSU
were lacking in these skills.

Dash et. al. (2012)

“A Study on the Relationship between Customer Satisfaction and Service Attributes Offered by Public
Sector and Private Sector Banks in India” analyses the data collected from the customers to understand
their banker‟s behaviour and how customers perceive the service value offered by the bankers. The
research objective for this study included exploration and description. Regression Model is used for
analysis. The results revealed that the impact of the service attributes upon overall customer
satisfaction of customers is high which is consistent with the previous study carried out by a few other
researchers.

Lohani and Bhatai (2012)

“Assessment of Service Quality in Public and Private Sector Banks of India with Special Reference to
Lucknow City” analysed the quality of services provided by public sector and private sector banks in
Lucknow, India. They ascertained service quality variations across selected banks by demographic
variations. They also, measured the customer satisfaction in selected public and private sector banks by
analysing the gap between expectations and their perceptions of banking services. The number of
responses in the research revealed that there existed a small perceptual difference regarding overall
service quality with the respective banks. The respondents of both the banks mostly concentrated on the
staffs of the banks for improving customer satisfaction while the bank had more concentration on the
tangible factor like a computerization, physical facilities, etc. to attract the customers.
Rakesh (2012)

“Quality Assessment of Banking Industry Using the Servqual Model” used the existing SERVQUAL
model and used both qualitative and quantitative scale development methods to develop a revised set of
scales. The SERVQUAL instrument has been the predominant method used to measure consumers'
perceptions of service quality. The results show that the customers expected most from the reliability
and empathy dimension of the banking service.

Santhiyavalli (2011)

“Customer‟s perception of service quality of State Bank of India - A Factor Analysis” studied the
customer‟s perception of service quality of the select branches of State Bank of India and the major
factors responsible for their satisfaction. The overall customer satisfaction towards the service rendered
by the State Bank of India regarding the four factors namely reliability, responsiveness, empathy and
tangibility stood at 90.1 per cent.

Roy et. al. (2011)

“Service Quality Gap of Foreign Banks in India using PZB Service Quality Model – an Empirical
Study” try to understand the gap of the service offered by the foreign Banks. The customer satisfaction
was evaluated by applying Gap Model of service quality proposed by Parasuraman, Zeithaml, and
Berry. The researcher finds gaps between Service Quality Specifications and Service Delivery,
Perceived Service and Expected Service and Customer Expectation and Management Perception.

Mishra et. al. (2010)

“Service Quality Assessment in Banking Industry of India: A Comparative Study between Public and
Private Sectors” made a comparative study of service quality perceptions of banks, under study, with
service quality expectations of their respective customers; try to know whether the banks are at, above
or below the perceptions of their respective customers; and suggest, on the basis of study results, ways
and means for improving service quality in banks with a view to make overall banking service more
effective arid efficient. The questionnaire containing all the 22 numbers of statements of SERVQUAL
instrument developed by Parsuraman et al for customer survey was used. The analysis of responses
clearly reveals that there exists a small perceptual difference among customers regarding overall service
quality with their respective banks.

Branmbhatl and Panelia (2008)

“An Assessment of Service Quality in Banks” comparatively examine and measure service quality and
customer satisfaction among private sector, public sector and foreign bank and offer suggestion based on
results of the study. The Sample size was 246 and the Sample universe included Ahmedabad and
Gandhinagar. The Sampling Technique used was stratified random. The five dimensions of
SERVQUAL as proposed by Parasuraman et al. (1988), Othman and Owen (2001, 2002) and Jabnoun
and Al-Tamimi (2003) were adapted and modified in this study. They conclude from the study that
Foreign Banks is better than public sector banks and private sector banks.

Hinson et. al. (2006)

“Determinants of Ghanaian Bank Service Quality in a Universal Banking Dispensation” tried to

compare service quality across these three banks and to determine the most important factors
contributing to service quality. The sample size is 250 and Sample Universe was Ghana. An adaptation
of the SERVQUAL model was used for this study. The study revealed that all the service quality
dimensions contributed significantly to the prediction of service quality in Ghana. Among all the service
quality dimensions, human element of service quality was found to be highly predictive of perceived
service quality.
Jain, V, Gupta, S and Jain, S (2012)

“Customer Perception on Service Quality in Banking Sector: With Special Reference to Indian Private
Banks in Moradabad Region” try to learn and understand the customer perception regarding service
quality and to learn and understand the different dimension of service quality in banks. The Sample size
used is 100 and the sample universe is Moradabad. The service quality model developed by Zeithamal,
Parsuraman and Berry (1988) has been used in the present study. The analysis reveals that among the
private sector banks all the dimensions of service quality are equally important.

Singh, SP and Khurana, S (2011)

“Analysis of Service Quality Gap and Customers‟ Satisfaction in Private Banks” tried to examine
Gender wise customers‟ expectations and perceptions of service quality provided by the Private Banks
in Hissar District. Secondly, to identify whether there is difference in expectation & perception of
service quality of male & female customers. Lastly, to identify the main attributes of service quality in
which male & female (separately) are more satisfied or dissatisfied. The Sample Size is 300 with
Sample Universe including Private Banks in Hissar. The Sampling Technique used was Quota
Sampling. A questionnaire consisting of 22 items based on SERVQUAL model was administered on
the sample. The results indicated that the quality of services private banks provide was below customers
, expectations

Ananth, A, Ramesh, R and B, Prabaharan (2010)

“A Service Gap Analysis in Private Sector Banks- an Empirical Study of Customers‟ Expectations vs.
Perceptions” evaluate the Quality of Service in selected private sector banks (ICICI & CUB). They also
tried to identify the gap between customer expectations and their perceptions. The Sample Universe is
CUB and ICICI. The study followed SERVQUAL as a framework and one dimension (accessibility)
was added to the previous dimensions to fit into the study. The gap analysis shows that empathy shows a
bigger gap between customer expectation and perception of service quality. The multi - regression
analysis shows that the dimension Empathy Reliability-Assurance positively influences the banking
service quality.
Brahmbhatt, M and Panelia, D (2008)

“An Assessment of Service Quality in Banks” Foremost aim of this research is to comparatively
examine and measure of service quality and customer satisfaction among private sector, public sector
and foreign bank and to offer suggestion based on results of the study. The Sample size was 246 and the
Sample universe included Ahmedabad and Gandhinagar. The Sampling Technique used was stratified
random. The five dimensions of SERVQUAL as proposed by Parasuraman et al. (1988), Othman and
Owen (2001, 2002) and Jabnoun and Al-Tamimi (2003) were adapted and modified in this study. They
conclude from the study that Foreign Banks is better than public sector banks and private sector banks.
 Objectives

Primary Objective:-

The main objective of the study is to compare the satisfaction level of customer in bank

Secondary Objectives:-

a. To analyze the satisfaction level of the costumer.

b. To identify the factors responsible for satisfaction or dissatisfaction of the bank customers..
c. To identify and suggest some measures for improving the satisfaction level of the customers

.
 Hypothesis

 There is no significant differences between the Age group of the respondents with regards to their
expectations towards banking sectors.
 There is no significant differences between the Marital Status of the respondents with regards to their
expectations towards banking sectors.
 There is no significant differences between the Gender of the respondents with regards to their
expectations towards banking sectors.
 There is no significant differences between the Educational Profile of the respondents with regards to
their expectations towards banking sectors.
 There is no significant differences between the Occupational Status of the respondents with regards to
their expectations towards banking sectors.
 There is no significant differences between the Income of the respondents with regards to their
expectations towards banking sectors.
 There is no significant differences between the Age group of the respondents with regards to their
perception towards banking sectors.
 There is no significant differences between the Marital Status of the respondents with regards to their
perception towards banking sectors.
 There is no significant differences between the Gender of the respondents with regards to their
perception towards banking sectors.
 There is no significant differences between the Education Profile of the respondents with regards to
their perception towards banking sectors.
 There is no significant differences between the Occupation of the respondents with regards to their
perception towards banking sectors.
 There is no significant differences between the Income of the respondents with regards to their
perception towards banking sectors.
 There is no significant association between customer satisfaction and service quality for Public banks.
 There is no significant association between customer satisfaction and service quality for Private banks.
 There is no significant association between customer satisfaction and service quality for Foreign
banks.
 RESEARCH METHODOLOGY
Research Methodology is the systematic process of collecting and analyzing the data in order to
increasing our understanding of the phenomenon about which we are concerned or interested. In
other words, research methodology means trying hard to discover answer to intellectual and
practical problems through the applications of scientific method.

A. Research Design-

A Research Design is the arrangement of conditions and analysis of data in manner that aims to
combine relevance to research purpose with economy to procedure. It is conceptual structure
within which research is conducted, it constitutes of blueprint for the collection, measurement and
analysis of data.
Descriptive Research Design has been used for this study. Descriptive research is those
which are concerned with describing the characteristic of a particular individual or group. In this
Study, the research is designed to describe something – for example, the demographic profile of
customers of banking sectors, their expectations and perception on banking services etc. The
objective of a descriptive study is to learn the who, what, where and how of a topic.

B. Data Collection Method

Data collection begins after research problem has been defined and research design plan is chalked
out. The researcher collected both primary data and secondary data.

 Primary Data- Primary Data are those which are collected afresh and for the first time. There
are various methods to collect primary data. Structured Questionnaires Method is used for
this study.

 Secondary Data- Secondary data refers to data which are already been collected and analyzed
by someone else. Secondary data have been collected from Banks brochures, websites and
literatures. In addition, the researcher has used various research Journals in the field of
management, text books in Marketing Management, Services Marketing, Total Quality
Management, Banking Management and related academic studies conducted in related areas.

C. Sampling

Sampling is a process used in statistical analysis in which a predetermined number of observations

are taken from a large population so that by studying the sample we may fairly generalize our
results.

 Sampling Design- A Sample Design is a definite plan for obtaining a sample from
population. It refers to technique or the procedure the research would adopt in selecting
items for the sample. Sample Design may as well lay down the number of items to be
included in the sample (sample size). Sample Design is determined before data are
collected.



 Study Population- Since this study focuses on Consumer Banking services, customers of
Public Banks, Private Banks and Foreign Banks in Chennai city are considered as Study
Population.

 Sampling Unit – Here sampling unit will be individual customer and individual employee.

 Sampling Method - Probability Sampling has been used for this study. In this sampling,
every item in the universe has an equal chance of being included in the sample. The
researcher used “Simple Random Sampling” for identifying the 68 respondent from the
selected sampling units in each of the three categories of Banks.

 Sample Size- The Sample consists of statistical sample is the number of observation that
constitute it. It is typically denoted by ‘n’, a positive integers. Here total 150 respondents.
Including bank employees and rural bank.
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