Project Report On

Consumer behaviour towards public and private sector

Institute of Management Studies, Ghaziabad

Submitted to-
Dr. Divya Gupta
Institute of Management Studies, Ghaziabad

Submitted by-
GROUP-2

Dev Rajan (BM-019060)

Dhrubajyoti Saha (BM-019061)
Rahul Baisoya (BM-019062)
Divya Mahara (BM-019063)
Durgesh Kumar Singh (BM-019064)
INTRODUCTION

Indian banking sector was mainly dominated by public sector banks before liberalization but
after the entrance of private sector banks the Indian banking sector has shown rapid growth.
because of changing behaviour of customers banks will have to raise standards. Bank is
defined as “A Bank is defined as an institution which collects surplus funds from the public,
safeguards them and makes them available to the true owner when required and also lends
sums be their true owners to those who are in needs of funds and can provide security.”
The growth of the banking industry is closely linked with the growth of the overall economy.
India is one of the fastest growing economies in the world and is set to remain on that path
for many years to come. This will be backed by the stellar growth in infrastructure, industry,
services and agriculture. This is expected to boost the corporate credit growth in the economy
and provide opportunities to banks to lend to fulfil these requirements in the future. The last
decade has seen many positive developments in the Indian banking sector. The use of
technology has brought a revolution in the working style of the banks. Nevertheless, the
fundamental aspects of banking i.e. trust and the confidence of the people on the institution
remain the same. However, with the changing dynamics of banking business brings new kind
of risk exposure. The strong contribution from all the three sectors of banks, namely,
government banks, private banks and foreign banks, revitalized the banking sector in India.
With the entrance of private sector banks in India it very essential for public banks to
perform.

OBJECTIVE

1. The purpose of this research are as follows:

2. To study the gender preference towards private and public banks.
3. To study whether any significant difference exists in the service quality and efficiency
level of public and private sector banks towards male and female.
4. To study the customer support system of public sector banks and private sector banks.
5. To study the adoption of latest technology by public sector banks and private sector banks.

LITERATURE REVIEW

Dr. K. Alagarsamy, S.Wilson (2013), The researcher have chosen this study to investigate
about the problem of 1)Abnormal delays in receiving and 2) marketing payment 3)
Customers have to wait in definitely without any body attending to them properly at the
counter. The objective of the study was to verify the customer satisfaction towards the
services given by banks, to analyze the recent banking technology and its repercussions on
the quality of customer services and to analyze the problems involved in banking
transactions.

The study concludes that bankers are not only satisfying the customer but should also trigger
to attitude of the customers towards the bank. Even though the customer is well educated
sometime customers hesitate to use high technology banking services for the transaction. For
the effective banking transaction, the banks should have good communication and soft skills.

Khushbu Agarwal, Dharmesh Motwani, Dr. Devendra Shrimali (2013), this research
focuses on the comparative study of customer behavior between public and private banks of
udaipur citythe. The objective of this research is to study the preferences towards types of
services provided by the public and private sector banks. Also, to identify the significant
difference between the satisfaction levels of Public and Private Bank customers of Udaipur
City and to study the association between various demographic variables and the choice of
bank between public & private.
The study concludes that Majority of customers are using the deposit services of Banks. It
also concludes that there is a significant difference between the satisfaction levels of Public &
Private bank customers of Udaipur City. The study also states that the choice of bank is
affected by Age & Educational level of customers.

FINDINGS AND ANALYSIS

Interpreting the Frequencies Procedure Output

Statistics
Preference
N Valid 62
Missing 0
Mean 1.42
Median 1.00
Mode 1

Here, the Statistics table shows that there are 62 valid and zero missing values. It also shows
the Mode statistic: here, the mode value is "1", which is the numeric code for the category
public sector banks.

Preference
Cumulative
Frequency Percent Valid Percent Percent
Valid Public Bank 36 58.1 58.1 58.1
Private Bank 26 41.9 41.9 100.0
Total 62 100.0 100.0

The frequency table contains four columns of summary measures:

 The Frequency column indicates how many observations fell into the given category.
 The sample contained a total of 62 respondents and all the respondents
specified their preferences
 The Percent column indicates the percentage of observations in that category out of
all observations. We can verify the proportions for each group by dividing its count in
the "frequency" column by the value in the last row of the table (62):
 Public Sector Banks: 36/62 = 58.1%
 Private Sector Banks: 26/62 = 41.9%

 The Valid Percent column displays the percentage of observations in that category

out of the total number of nonmissing responses. We can verify the proportions for
each group by dividing its count in the "frequency" column by the value of "Total"
that appears after the last valid category. As there is no missing value, it is same as
percent.
 The Cumulative Percent column is the total percentage of the sample that has been
accounted for up to that row; it can be computed by adding all of the numbers in the
Valid Percent column.

Bar chart
Here, we can interpret that:

 Number of respondents having their accounts in public banks i.e., 36 are higher.
 Respondents of the private banks are lower in number i.e., 26

Interpreting the independent t-test Output

Group Statistics
Gende N Mean Std. Std. Error
r Deviation Mean
Service_quality_and_effi Male 40 3.70 .992 .157
ciency Femal 22 3.86 .710 .151
e

Independent Samples Test

 Levene's Test t-test for Equality of Means

for Equality of

Variances

F Sig. t df Sig. (2- Mean Std. Error 95% Confidence

tailed) Difference Difference Interval of the

Difference

Lowe Upper

Service_quality_and_efficienc Equal 2.983 . -.682 60 .498 -.164 .240 -.643 .316

y variance 089

assumed

Equal -.751 55.719 .456 -.164 .218 -.600 .273

variance

s not

assumed

From the above table we can see that, 40 Male respondents have a mean of 3.7 and 22 Female
respondents have mean of 3.86.
From this we can infer that females get better service quality and efficiency compared of
males from sample.
Now we will apply independent sample t test to check whether the same is for population or
not.
Ho: No Significant difference exists in the service quality and efficiency level of public and
private sector banks towards male and female

H1: Significant difference exists in the service quality and efficiency level of public and
private sector banks towards male and female

Since we are getting two values of tcal and we need to determine one, so we will first apply F
test.
For this we will make the following hypothesis.
Ho: Equal variances assumed
H1: Unequal variances assumed
F-value is 2.983 with p-value = 0.089 > 0.05.
Therefore, Accept Ho. Equal variances assumed.
Further, t-calculated value is -0.682 and p-value 0.498 > 0.05. Therefore, Accept Ho.

Thus, No Significant difference exists in the service quality and efficiency level of public and
private sector banks towards male and female.

T-Test

One-Sample Statistics
N Mean Std. Deviation Std. Error Mean

CustomerSupport 52 3.4615 1.21206 .16808

T-Test

One-Sample Statistics
N Mean Std. Deviation Std. Error Mean

CustomerSupport 52 3.4615 1.21206 .16808

One-Sample Test
Test Value = 3
t df Sig. (2- Mean 95% Confidence Interval of
tailed) Difference the Difference
Lower
CustomerSupport 2.746 5 .008 .46154 .1241
1

One-Sample Test
Test Value = 3
95% Confidence Interval of the Difference
Upper
CustomerSupport .7990
Interpretation:
H0: Customer support and guidance system in public and private sector banks is not
significant ( µ = 3)
H1: Customer support and guidance system in public and private sector banks is significant
( µ ≠ 3)

The t value is 2.746, which gives us a p-value (or 2-tailed significance value) of .008. This is
going to be a significant result for any realistic alpha level.

A standard alpha level is .05, and .008 is smaller than .05, so we’re going to reject the null
hypothesis which asserts there is no difference between our sample mean and the population
mean.

More technically, what the result shows is that on the assumption that the null hypothesis is
true, a difference as big as we’ve got between our sample mean and the population mean is
extremely unlikely to have arisen purely by chance.

This counts as evidence that the difference between our sample group and the population as a
whole is real.
Therefore, we can conclude that Customer support and guidance system in public and private
sector banks is significant.

Anova test

For anova test, we have taken the variable gender and income in which DV is income and IV
is the gender.from the give below descriptive table it is clearly seen that total sample is of 62
out of which 40 are males and remained 22 are females.
Here p>.05 then we go for test of homogeneity variances

As per that given data :

 H0: income does not varies with gender
H1: income varies with gender.

Descriptives
Income

N Mean Std. Deviation Std. Error 95% Confidence Interval for Mean Minimum Maximum

Lower Bound Upper Bound

Male 40 2.25 .840 .133 1.98 2.52 1 4

Female 22 2.45 .739 .157 2.13 2.78 1 4

Total 62 2.32 .805 .102 2.12 2.53 1 4

Test of Homogeneity of Variances

Levene Statistic df1 df2 Sig.

Income Based on Mean .742 1 60 .393

Based on Median .265 1 60 .608

Based on Median and with adjusted .265 1 54.563 .608

df

Based on trimmed mean .742 1 60 .393

From the above table it can be predict that P >.05, Hence significant and there is a
homogeneity of variance

ANOVA

Income

Sum of Squares df Mean Square F Sig.

Between Groups .594 1 .594 .915 .343

Within Groups 38.955 60 .649

Total 39.548 61

From the above table it is seen that significant P>.05 Therefore we accept the null hypothesis
that means income of population varies on the basis of the gender.

Tests of Normality
Gender Kolmogorov-Smirnova Shapiro-Wilk

Statistic df Sig. Statistic df Sig.

Income Male .264 40 .000 .831 40 .000

Female .270 22 .000 .846 22 .003

a. Lilliefors Significance Correction

LIMITATIONS

 The sample taken for the study was only 62 which is small size and cannot be
accurate for the whole population.
 Another difficulty was we are restricted to home due to COVID 19 pandemic
 The main limitation of this research project is that full population size is not taken.
Research Methodology
(A) Research Design: - To serve the purpose of research paper descriptive research design
was used Primary data was collected with the help of close ended questionnaire.

(B) Sample Design: - Our target population involves the 62 users of banking services.
 Number of respondents having their accounts in public banks i.e., 36 is higher.
 Respondents of the private banks are lower in number i.e., 26
The respondents were selected through convenience sampling.
(C) Analysis: - The data collected was analyzed with the help of various statistical tools like
 Frequency,
 One sample T Test,
 Two sample T Test,
 ANOVAs etc.
CONCLUSIONS
1. Majority of customers are the usage of the deposit offerings of Banks. Loan offerings
are ranked on 2nd role on utilization scale.
2. There is a significant difference between the satisfaction levels of Public & Private
bank customers
3. . The choice of bank is affected by Age & Educational level of customers.
The banking quarter has beneath long gone many changes the brand new monetary coverage
based totally on privatization, globalization and liberalizations adopted by using government
of India. Customer is the king within the current banking. Since the banks are providing tailor
made offerings to the changing needs of the ultra current consumer to stand their stiff
competition from the rival banks. Today the purchaser offerings choice preserves on
converting at a speedy pace and their demands. Each financial institution complies with
distinctive method it's far very tough to comply with the clients. Even even though the client
is properly educated a while high generation banking services hesitate the client for the
transaction. For the effective banking transaction, the banks should have proper conversation,
tender ability should need. At each degree of delaying with the financial institution the
consumer the bank management wants to educate the employees for the banking sports and
method. Universal banking system can help the customer for the better transaction.

BIBLIOGRAPHY

1. Khushbu Agarwal, Dharmesh Motwani and Dr. Devendra Shrimali (July, 2013) “A
Comparative Study of Customer Behaviour Between Public and Private Banks of
Udaipur City”. ZENITH International Journal of Business Economics & Management
Research. ISSN 2249- 8826 ZIJBEMR, Vol.3 (7).
2. Dr. K. Alagarsamy, S. Wilson (February, 2013) “A Study on Customer Behaviour
Towards Banking Services with Special Reference to Public Sector Banks in
Sivagangai Dist.”. Asia Pacific Journal of Marketing & Management Review. ISSN
2319-2836 Vol.2 (2).