“Customer Satisfaction Regarding Service Quality In Bank

At Ulhasnagar”

A Project report by :

NAMES ROLL NO
Vrushali Dalvi 13
Pragati Payagude 39
Bhagyashree Vishwakarma 67
Amandeep Shoor 49
Roshini Ahuja 3

Under the guidance of:-

Dr. Reema Panjwani
 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my

teacher Dr. Reema Panjwani who gave us the golden opportunity
to do this wonderful project on the topic “Customer Satisfaction
Regarding Service Quality In Bank At Ulhasnagar”which also
helped us in doing a lot of research and we came to know about
so many things. So we are really thankful to them.
 INDEX

 INTRODUCTION
 RESEARCH PROBLEM
 RESEARCH & METHODOLOGY
 REVIEW OF LITERATURE
 DATA ANALYSIS & INTERPRETATION
 RECOMMENDATIONS
 CONCLUSION
 QUESTIONNAIRE
 INTRODUCTION
DEFINITION OF BANK: -

Banking means “Accepting Deposits for the purpose of lending or investment of deposits of money from the
public, repayable on demand or otherwise and withdraw by cheque, draft or otherwise.”

-Banking Companies (Regulation) Act, 1949

ORIGIN OF THE WORD ‘BANK’: -

The origin of the word bank is shrouded in mystery. According to one view point the Italian business
house carrying on crude from of banking were called “bencher” According to another view banking is derived
from German word “Branck” which means heap or mould. In England, the issue of paper money by the
government was referred as a raising a bank.

ORIGIN OF BANKING: -

Its origin in the simplest form can be traced to the origin of authentic history. After recognizing the
benefit of money as a medium of exchange, the importance of banking was developed as it provides the safe
place to store the money. This safe place ultimately evolved into financial institution that accepts deposits and
make loans i.e., modern commercial banks of exchange, the importance of banking was developed as it
provides the safer place to store the money.

BANKS IN INDIA: -

In India the bank is being segregated in different groups. Each group has their own benefits and
limitations in operating in India. Each has their own dedicated target market. Few of them only work in rural
sector while others in both rural as well as urban. Many even are only catering in cities. Some are of Indian
origin and some are foreign players.

All these details and many more is discussed over here. The banks and its relation with the customers,
their mode of operation, the names of banks under different groups and other such useful information’s are
talked about.

BANKING STRUCTURE IN INDIA: -

MEANING OF CONSUMER SATISFACTION: -

Banking sector plays an important role in any nation’s economy. There are public, private and foreign
banks in our country which are giving various services to their valued customers every day. It’s a well-known
fact that no business can exist without customers. Thus, customer satisfaction is very much important for
survival and growth of any bank. When it comes to commercial banks, customer satisfaction level
differentiates one bank from another, thus measuring customer satisfaction is exceedingly important. This is
the reason why banks listen to customer requirements and complains. Profitable business cannot exist without
satisfied customers, especially in service-oriented industries. The research is conducted to reveal customer
expectations, which are crucial for the successful growth of the company. Because personnel influence
customer satisfaction, performance of employees of the bank will also be examined. The study can be used to
improve quality of service in future.

NEEDS TO MEASURE CONSUMER SATISFACTION: -

 By understanding customer’s perception, banks can determine the actions required to meet the
customer’s needs.
 Bank can identify their own strengths and weaknesses, where they stand in comparison to their
competitors.
 Customer satisfaction measurement helps to promote an increased focus on customer outcomes and
stimulate improvements in the work practices and processes.

EXPECTATION AND CONSUMER SATISFACTION: -

 Expectation have a central role in influencing satisfaction with services, and these in turn are
determined by a very wide range of factors. Lower expectations will result in higher satisfaction ratings for
any given level of service quality.
 RESEARCH PROBLEM: -

“Customer satisfaction regarding service quality in bank at Ulhasnagar”.

OBJECTIVES:

 To ascertain customer satisfaction regarding service quality in private and public bank.
 To identify the problem faced by customer.
 To evaluate the different service provided by bank.

RESEARCH AND METHODOLOGY: -

HYPOTHESIS: 1st

H0: customer is satisfied with online banking facilities rather than visiting a bank.

H1: customer is not satisfied with online banking facilities rather than visiting a bank.

HYPOTHESIS: 2nd

H0: customer satisfaction level is high in private bank.

H1: customer satisfaction level is not high in private bank, but it is high in public bank.

PROVE OF RESEARCHER HYPOTHESIS:

This study has been designed to test the hypotheses by conducting a co-relational research. The preceding
conceptual framework (Figure1) of the proposed model depicts the pattern and structure of the co-relational
relationships among the set of measured variables. The conceptual framework illustrates the name of research
variables and relationship with them. Also, one sample t-test was used to know the impact of independent
variable over dependent variable. In this study primary data was collected by using self-administered
questionnaires which were distributed to respondents and they were briefed on the purpose of the study. The
structure of the questionnaire is clear, easy to understand, and straightforward. In order to test the hypothesis,
the questionnaire was designed to find out as to what are the factors that determine the customer satisfaction.
As the researcher take certain hypothesis while researching on their research problem that is “CUSTOMER
SATISFECTION IN BANK IN ULHASNAGAR” in the 1st hypothesis the alternative hypothesis H0; is
customer satisfied with online service instead to visiting a bank and null hypothesis H1: is customer is not
satisfied from online service rather than visiting bank . In these two the alternative hypothesis gets accepted
because 84.5% customer gives in response in favour of that they are satisfied with online service rather than
visiting a bank.

Hence the null hypothesis gets rejected.

In the 2nd hypothesis, alternative hypothesis H0: customer satisfaction level is higher in private bank rather
than public bank and here also alternative hypothesis gets accepted because 48.5% of customer had given
favour response of that private bank provide a higher level of satisfaction in qualitative service it their client
and only 26.8 % customer is in favour of public bank, Hence null hypothesis is also rejected collection period
of this study. A simple random sampling method is used to collect data from the population of this research.
The sample size was 100 in this Case.

234 D.U. Journal of Marketing, Vol. 17, June 2014

The questionnaire, which is mentioned before to be used for data collection of this study will be distributed
among the clients who have a bank account and taking services from the bank. There are several reasons
behind the selection of this method. First, it allows large amounts of information to be obtained at a relatively
low cost. Second, more accurate responses are obtained because

interviewer bias is avoided and secondary data was collected from previous research, annual report etc. Data
was collected from different private and public bank customers in area of Ulhasnagar.
 REVIEW OF LITERATURE: -
Most research in the area of service quality has been based upon the model developed by (Parasuraman et
al 1985, 1988), which incorporates a comparison of customer expectations and perceptions of service
performance. It is relevant to refer briefly in the related areas of the subject to find out and to fill up the
research gaps. Literature on Service Quality dimensions like Tangible, Reliable, Responsiveness, Assurance
and Empathy and few other studies. To study to evaluate the quality of private banks services provided to the
customers and to measure the customer’s satisfaction. Several six dimensions scale to be measured are
tangible, reliability, responsiveness, assurance, empathy and accessibility the ability to access private banks
easily in today’s competitive world where technology plays a very important role and if we talk about banking
sector or industry there is a positive relationship between technology and customer satisfaction. They also
stated that satisfaction of customers is not merely introducing innovative products and services rather it is
much more than that. They also found that if the bank wants to become the market leader in the competitive
environment it must use the innovation approach in all the aspects like products and services. Also, there is a
significant relationship between technological innovation and cost. As the innovation increase the cost is also
increase. In today’s competitive world where technology plays a very important role and if we talk about
banking sector or industry there is a positive relationship between technology and customer satisfaction. The
satisfaction of customers is not merely introducing innovative products and services rather it is much more
than that. It is also found that if the bank wants to become the market leader in the competitive environment
it must use the innovation approach in all the aspects like products and services. Also, there is a significant
relationship between technological innovation and cost. As the innovation increase the cost is also increase.
The behaviour of employee towards the customers in the banks. It is the critical factors which contribute in
switching the banks. One very interesting driver is customer satisfaction in all the drivers which contribute in
the switching behaviour of customers. So again, we can’t ignore that customer satisfaction of the major factors
among. Banks should come out with the strategies that increase the customers’ satisfaction. It is found in
research which was on public, private and foreign shows that customer are more satisfied with the services
quality of the foreign banks then the private and public banks. It is seen that satisfied customers were
significantly more like by to recommend their bank to their friends and to consider using their current bank in
the future, and they are more resistant to offers from other banks. Loyal customers are more interested in the
services of their own banks when considering investments in all the aspects such as in the financial market,
deposit their own savings to their own bank, take out a mortgage from their own bank and use other banking
products and services from their current bank. In the cutthroat competition where every bank is focusing on
retaining and attracting new customer, relationship marketing is the key element which should be adopted by
the bank. It is also found that banking sector is one of the major service sectors and the business of banks is
more or less dependent on the customer services and satisfaction. Banks should increase their services and
make good relationship with the customer. According to the study customer satisfaction if influenced by social
responsibility, positive word-of-mouth, and reliability. The relationship marketing is the important tool which
can significantly increase the customer satisfaction. Other factors like employee behaviour, their friendliness,
politeness, cooperation, promptness, efficiency, knowledge level, trustworthiness, and appearance also play
an important role in satisfying the customer. The customer satisfaction majorly depends on the provision of
an approach for the manager so that higher customer satisfaction for the future could be obtained by the bank.
Customer satisfaction the feeling of pleasure and disappointment resulting from comparing products perceived
performance (or outcome) in relation to his or her expectation. If the service meets the expectation then the
customer is satisfied, if it falls short then he/she is dissatisfied and if it exceeds then the customer is delighted.
A satisfied customer forms the foundation of any successful business. In research findings it shows customers
are more loyal towards those banks who are facilitating internet banking services. Also, good brand image
build relationship between banks and customer and enhance the customer loyalty toward bank. It is also found
that those banks that are giving the internet banking services to their customers, loyalty of those customers are
more towards the banks. The brand image also plays a significant role between loyalty of the customers and
internet banking. Responsiveness is the next factor, which influences a consumer in choosing a bank. The
security system of a bank should be good and proper. So that consumer should feel safe and secure of investing
or depositing in the bank. Many banks provide locker facility. Just like we trust a bank with our money in
savings account or fixed deposits, we have bank lockers to safeguard our valuables such a jewellery, important
documents, property will etc. Bank lockers are a safe and secure option to store important items which are
quite unsafe at home. Besides, they offer long-term protection. ATMs are intended to execute the most
important function of bank. The most stimulating experience of the customers and the bankers is that the
plastic card is replacing all the hassles of bank transactions such as individual attendance of the customer,
banking hour’s limitations and paper-based authentications. Hence, ATMs have made hard cash just seconds
away. Some banks provide quick and safe ATMs facility and vice-versa. Problem faced by consumers is
standing in queue for long time. Parking problem and ATMs doesn't have sufficient cash of some banks. The
study did a comparison of public and private banks with respect to perceptions of customers regarding service
quality. It was found out that service quality is associated with satisfaction and there was significant difference
between quality of services provided by banks. The paper analyses existing study and tries to understand socio
demographic and rational profile of public retail banking consumers. It also finds out the importance of service
quality dimensions to predict the multidimensional model of behavioural intentions among public sector
consumers in India. Loyalty was found to be influenced by operating hours, modern equipment error free
records etc. Service quality parameters like tangibility, responsiveness and empathy dimensions were also
found to be very important. The study uses hypothesis to find out service quality. The literature review of
banking industry and effect of IT based services on customer satisfaction. The study highlights customer
satisfaction levels among young customers in banking industry. A survey indicates the gaps between
customer’s expectations and perception with respect to IT based banking services. The study tries to develop
a comprehensive model of banking automated service quality taking into consideration unique attributes of
each delivery channel and other dimensions which influence service quality. It was finding out that behaviour
of customers with respect to internet banking vis-à-vis conventional banking. The study found out that internet
banking was found to be easier and speedier than conventional banking and trust, accuracy and confidentiality
were the most important factors here. Interest rate on bank accounts is very less and Interest charges on loans
is very high. Most of the people maintain saving Account in banks to save their money. Whereas Businessmen,
Traders maintain Current Account and other types of accounts are also there such as- FD, Recurring bank
deposits. It was found that level of customer satisfaction in the public sector banks and the private, with the
purpose of helping bank management to formulate marketing strategies
 DATA ANALYSIS & INTERPRETATION
Data analysis was done mainly from the data collected through the customers. The data Collected
from secondary sources is also used to analyses on one particular parameter. Qualitative analysis was done
on the data collected from the primary as well as secondary Sources
 ACCOUNT DETAILS:
 Customer’s Bank Sector:

SECTOR
PUBLIC

PRIVATE

33%

67%

INTERPRETATION:

From the above chart, we can interpret that 67% of customers has Public sector bank and 33% of
customers has Private sector bank.

 Account Stability:

STABILITY
0-5 years
5-10 years

8% 10-15 years
10% 15 & more

15%
67%

INTERPRETATION:

From the chart,

67% of customers have account from 0-5 years with their bank.

15% of customers have account from 5-10 years with their bank.
10% of customers have account from 10-15 years with their bank.

8% of customers have account from 15 & more years with their bank.

 Type of account:

ACCOUNT TYPE
CURRENT A/C
SAVING A/C
6%
LOAN A/C
2%
DEMAT A/C

92%

INTERPRETATION:

From this survey, we come to know that most of the customers have savings accounts with bank. Almost
92% customers have saving account,6% current account, 2% loan account with bank & no customer have
Demat account with their bank.

 CHARGES:
 Minimum Deposit

DEPOSIT
0
1000
2000
10% 2000 & MORE

42%
27%

21%

INTERPRETATION;

As compared to Private & Public bank, Private bank have more deposit amount.

But in overall survey, 10% customers have 0 minimum deposit in bank account.

27% customers have 1000 minimum deposit in bank account.

21% customers have 2000 minimum deposit in bank account.

42% customers have 2000 & more minimum deposit in bank account.

 Charges for not maintaining minimum balance

CHARGES

YES
48% 52%
NO

INTERPRETATION;

52% Customers pay charges for not maintaining minimum balance in their account.

48% Customers do not pay charges for not maintaining minimum balance in their account.

 Locker Charges:

LOCKER CHARGES
Yes(750-1500)
Yes(1500-3000)
4%
9% Yes(3000 & more)
3% Yes(Not Aware)
No
17%

67%

INTERPRETATION:

33% customers have lockers in their bank. Out of 33% 9% customers pay 750-1500 Rs annually,4% pay
1500-3000 Rs annually,3% pay 3000 & more Rs annually & 17% customers are not aware of charges.67%
customers do not have lockers in their bank.
 CONVENIENCE:
 Bank Location

LOCATION
0-5 KM
5-10 KM
10-15 KM
8%
7% 15 & MORE

21%
64%

INTERPRETATION;

64% customer’s bank located is 0-5 km from their house.

21% customer’s bank located is 5-10 km from their house.

7% customer’s bank located is 10-15 km from their house.

8% customer’s bank located is 15 & more km from their house.

 Problem regarding bank facility

PROBLEMS
STANDING IN QUEUE

SERVICE NOT ON TIME

30% 35% PARKING PROBLEM

1% INCONVENIENCE BANK
LOCATION
12%
22% NONE OF THESE

INTERPRETATION;

Customers faces many problems regarding their bank facility like:35% customer face problem of Standing
in queue,22% face problem of Service not on time,12% face problem of Parking problem,1% face
problem of Inconvenience bank location & 30% face none of these problems.
 Technologically well-equipped ATM’s

ATM SERVICES
AGREE
STRONGLY AGREE
3%
DISAGREE
10%
STRONGLY DISAGREE

21%
66%

INTERPRETATION;

66% customers Agree that their ATM is technologically well equipped.

21% customers Strongly Agree that their ATM is technologically well equipped.

10% customers Disagree that their ATM is technologically well equipped.

3% customers Strongly Disagree that their ATM is technologically well equipped.

 QUALITY:
 Problems faced by the customer

PROBLEMS
HIDDEN CHARGES
HUGE ERRORS
CHEQUE BOUNCING
22%
37% LAZY EMPLOYEE
6% OTHER
7%

28%

INTERPRETATION;

Customers faces many problems with their bank like:22% customer face problem of Hidden charges,6%
face problem of Huge errors,7% face problem of cheque bouncing,28% face problem of lazy employees &
37% face other problems.
 Time taken to solve problem

PERIOD
WITHIN HOURS
WITHIN DAYS
7% 18%
WITHIN WEEKS

22% WITHIN MONTHS

53%

INTERPRETATION;

18% customer’s bank solve their problem within Hours.

53% customer’s bank solve their problem within Days.

22% customer’s bank solve their problem within Weeks.

7% customer’s bank solve their problem within Months.

 Automatic Payment made at Wrong Time

WRONG AUTOMATIC PAYMENT

YES(IT RESOLVED EASILY)

23% YES(IT RESOLVED AFTER

TOO MUCH ENQUIRY)
51% NO

26%

INTERPRETATION;

49% customers have experienced the problem that automatic payment made at wrong time from bank,
from that 49% 23% is resolved easily & 26% is resolved after too much enquiry.

51% customers didn’t experienced the problem of automatic payment made at wrong time from bank.
 Security of your bank

SECURITY
EXCELLENT
VERY GOOD
2% GOOD
25% AVERAGE POOR
41%

32%

INTERPRETATION;

41% customers think that their bank’s security is Excellent.

32% customers think that their bank’s security is Very Good.

25% customers think that their bank’s security is Good.

2% customers think that their bank’s security is Average Poor.

 Satisfied with online facility

ONLINE FACILITY
YES

NO
15%

85%

INTERPRETATION;

85% customers are satisfied with online facility rather than visit to bank.

15% customers are not satisfied with online facility rather than visit to bank.

 ENVIRONMENT:
 Employees behaviour towards customer
 EMPLOYEES BEHAVIOUR
POLITE
CO-OPERATIVE
11%
RUDE
10% 34%
NON CO-OPERATIVE

45%

INTERPRETATION;

According to 34% customers employee’s behaviour is Polite towards them.

According to 45% customers employee’s behaviour is Co-operative towards them.

According to 10% customers employee’s behaviour is Rude towards them.

According to 11% customers employee’s behaviour is Non-Co-operative towards them.

 Overall service quality of your bank

OVERALL SERVICE QUALITY

EXCELLENT
VERY GOOD
5% GOOD
29% AVERAGE POOR
32%

34%

INTERPRETATION;

29% customers say their bank’s overall quality is Excellent.

34% customers says their bank’s overall quality is Very Good.

32% customers say their bank’s overall quality is Good.

5% customers says their bank’s overall quality is Average Poor.

 Bank provide Qualitative services

QUALITATIVE SERVICES
PUBLIC BANK
PRIVATE BANK
1%
23% 26% BOTH OF THESE
NONE OF THESE

50%

INTERPRETATION;

According to 50% customers Private bank provide Qualitative services.

According to 26% customers Public bank provide Qualitative services.

According to 23% customers both the sector provide Qualitative services.

According to 1% customer none of the sector provide Qualitative services.

 Recommend this bank to your friends, relatives, associates.

RECOMMEND THIS BANK

YES

NO
22%

78%

INTERPRETATION;

78% Customers will recommend their bank to friends, relatives, associates.

22% Customers will not recommend their bank.

 RECOMMENDATIONS
The banks must play an effective role to satisfy the customers ‘demands while marketing their products and
services. Banks must commit to provide the best possible services to their customers. Given below are some
suggestions to improve the customer services.
 In the satisfaction level, the Commercial banks offered good technological innovations to their customers:
Therefore, the public sector banks must update the customer friendly innovative technologies to offer more
level of satisfaction.
 The customers of both Public and Commercial banks are not much aware of the availability and usage of
certain products like Savings plus and Rent in scheme. Medius scheme and Basic banking – no frills account.
Hence it is suggested that the banks should develop new ways of working to improve efficiency in
marketing. Banks must adopt customer segmentation, which will help in customizing their product portfolio
well
 It is suggested that both Public and Commercial banks should dramatically improve their ECS mechanism
to increase the level of satisfaction of customers towards the services provided under settlement system and
centralized funds management system.
 It is suggested that both Public and Private banks should dramatically improve their ECS mechanism to
increase the level of satisfaction of customers towards the services provided under settlement system and
centralized funds management system.
 Both the banks must provide relevant facts about their information technology-based products and services
to create awareness among the customers.
 Research suggests that the financial services and the products offered over information technology by the
banks should be simple and easy for the customers to understand. Those products and services should not
be a challenge for those who have to choose among them.
 CONCLUSION

After analysing the study variables in the context of the banking industry of Ulhasnagar, the
following issues were found to be recommended. From the result of the correlation analysis it was found in
private sector that one studied independent variable is moderately correlated with dependent variable. Most
of the variable supports very weakly the dependent variable. In public sector bank most of the variables are
weakly and very weakly support the dependent variable. In hypothesis’s testing in private and public sector
bank doesn’t support all hypotheses overall service quality should be taken especial care for the benefit of the
bank. Although different kind of banking card or product, and scheme has been introduced in our country by
foreign bank and private bank, still majority people are not aware about that. Because banking products are
completely different from other product and their functions are also vague and complex in people mind. So,
management of banks should take effective measure so that they can bring their product to people’s mind and
make them understand about their products attributes. Beside that management should ensure that all of their
branches are operating in similar fashion and providing similar product choices (such as savings, cards, and
personal loans) so that clients of any location have similar perception about bank. Furthermore, managers
should improve quality of their product overtime with the changing environment. Banks have also installed
exclusive data communication network and they have become the members of the Society for World Wide
Inter-Bank Financial Telecommunications (SWIFT) to establish connection with their own branches and with
other bank computers network, both nationally and internationally. In this context it is significant to say that
the Commercial banks have to introduce a sound information technology-based products and services or
schemes with the help of professional excellence. It is further insisted that the banks have to be well aware of
the changing needs and requirements of almost all the segments of customers while developing a package or
while innovating a scheme to satisfy their interest.
 QUESTIONNAIRE

 BASIC QUESTIONS:
 Name: -
 Occupation: -
 Name of your Bank: -
 ACCOUNT DETAILS:
 For the past how many years you have account with this bank?
a) 0-5 years c) 5-10 years
b) 10-15 years d) 15 & more years
 What kind of account do you maintain in this bank?
a) Current A/C c) Saving A/C
b) Loan A/C d) Demat A/C
 CHARGES:
 How much minimum deposit you maintain in your bank account?
a) 0 c) 2000
b) 1000 d) 2000 & more
 Do they charge for not maintaining minimum balance in your account?
a) Yes b) No
 Do you have Locker in your bank? If yes, then how much you pay annually for it?
a) Yes (750-1500) c) Yes (1500-3000)
b) Yes (3000 & more) d) Yes (Not aware)
e) No
 CONVENIENCE:
 How far is your bank from your house?
a) 0-5 KM c) 5-10 KM
b) 10-15 KM d) 15 & more
 Which of the following problem faced by you regarding your bank facility?
a) Standing in queue b) Service not on time
b) Parking problem d) Inconvenience bank location
c) None of these
 ATM’s of your bank are technologically well equipped?
a) Agree c) Disagree
b) Strongly Agree d) Strongly Disagree
 QUALITY:
 Which of the following problem you face in your bank?
a) Excessive/Hidden fees c) Checks/Funds bouncing
b) Huge errors/Mistake d) Lazy employee
e) Other
 How long does it take for your bank to solve your problem?
a) Within Hours c) Within Days
b) Within weeks d) Within Months
 Have you ever experienced the problem that your automatic payment was made at the wrong time
from bank? If so, how was it resolved?
a) Yes (It resolved easily) c) No
b) Yes (It resolved after too much enquiry)
 What do you think about security of your bank?
a) Excellent c) Good
b) Very Good d) Average Poor
 Are you satisfied with online facility rather than visit to bank?
a) Yes c) No
 ENVIRONMENT:
 Employees behaviour towards their customer?
a) Polite c) Co-operative
b) Rude d) Non-Co-operative
 What do you feel about overall service quality of your bank?
a) Excellent c) Good
b) Very Good d) Average Poor
 According to you, which type of bank provide Qualitative services?
a) Private Bank c) Both of these
b) Public Bank d) None of these
 Will you recommend this bank to your friends, relatives, associates?
a) Yes b) No
 Your overall opinion about this survey?
a) Satisfactory c) Looking forward for results

b) Will yield result