Credit Cards

INTRODUCTION

Customer perception is a marketing concept that encompasses a customer's

impression, awareness and/or consciousness about a company or its offerings.

Customer perception is typically affected by advertising, reviews, public relations,

social media, personal experiences and other channels. Consumers can evaluate a

product along several levels. Its basic characteristics are inherent to the generic

version of the product and are defined as the fundamental advantages it can offer to a

customer. Generic products can be made distinct by adding value through extra

features, such as quality or performance enhancements. The final level of consumer

perception involves augmented properties, which offer less tangible benefits, such as

customer assistance, maintenance services, training, or appealing payment options. In

terms of competition with other products and companies, consumers greatly value

these added benefits when making a purchasing decision, making it important for

manufacturers to understand the notion of a “total package” when marketing to their

customers. For example, when manufacturing automotive parts, a high-performing

product will provide the customer base with basic benefits, while adding spare parts,

technical assistance, and skill training will offer enhanced properties to create a total

package with increased appeal to consumers.

Perception is not good or bad, right or wrong, it is just the way someone judges an

experience based on their value system of what they believe should happen. Since

people are unique, each of their perceptions are unique .On the other hand each

situation is a "point of contact" with an employee that will tell the customer a "truth"

about the company's idea of customer service. Each situation will create expectations’

of what the next experience will probably be like. Companies spend considerable

amount on advertisement and in this world of competitive advantage advertisement

has to be repetitive in nature. Brand hammering results in brand recall which is a

costly affair. So companies need to understand the Customer.

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NEED OF THE STUDY

The products and services that an industrial company has to offer are generally

organized around its customers’ needs in addition to the level of expertise and

production capabilities of the firm. Creating a strategy for product development is an

important and often multifaceted segment of running a successful enterprise, and it

brings together a range of different principles, such as research and development,

marketing, engineering, design, materials, and manufacturing. In most cases, an

industrial product development strategy will depend on two main goals: keeping the

new product or product line within the company’s overall objectives and marketing

philosophy, and developing a system for assessing the performance of an existing

product.

Consumers and their perception play a vital role in determining marketing

strategies to be adopted by telecommunication service providers. All segments in

telecommunication industry are facing challenging on account of either oversupply or

price wars or a shift in consumers preference. Consumer perception is simply a subset

of large field of human behavior. Knowing customer is never simple because they

state their needs, wants but act otherwise. Marketers must study their target

consumers in view an attempt will be made by enquiring the issues relating to the

market share of ICICI Bank credit cards in Hyderabad.

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OBJECTIVES OF THE PROJECT

The primary objective of the report is categorized into following sub-topics:

1. To study the demographic factors of credit card holders.

2. To know the using purpose of credit card by the holders.

3. To assess the behavioural changes of credit card holders.

4. To examine the consumption pattern of credit card holders.

5. To find out the satisfaction level of existing credit card holders.

6. To suggest measures to improve the credit card system in India

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SCOPE OF THE STUDY

All the questions have been analysed by adding up the responses against each

alternative and answers from the various respondents. The collected data has been

subject to statistical analysis to draw inferences and suitable conclusions. The study is

limited to the analysis of customer perception on credit cards by ICICI Bank,

Hyderabad.

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RESEARCH METHODOLOGY:

The study is based on primary data, which has been collected from the credit card

users with the help of a well drafted and structured questionnaire (see annexure). For

the collection of primary data, we have confined ourselves to Hyderabad, India. Our

sample consists of a total of 100 respondents.

The respondents are basically credit card users, who have been selected by following

the non-probabilistic sampling, simple purposive sampling and convenience sampling

techniques.

Further, it is essential to mention two things: firstly, in convenience-sampling,

respondents (who were seen using/have possession of credit cards) were selected

because they happened to be in the right place at the right time and secondly,

convenience sampling technique is not recommended for descriptive or casual

research, but they can be used in exploratory research for the generation of ideas

SOURCES OF DATA

Primary sources

Primary data has been collected through the structured questionnaire consisting

mainly of the closed ended questions.

Secondary sources

Secondary data has been collected from the internet, journals, reference books etc.

Sampling Plan

Target Population: Credit Card holders

Sample Size: 100 respondents

Sampling technique: Convenience sampling

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Research Design

The research design that has been used is Descriptive Research.

Involves gathering data that describe events and then organizes, tabulates,

depicts, and describes the data.

Uses description as a tool to organize data into patterns that emerge during

analysis.

Often uses visual aids such as graphs and charts to aid the reader

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LIMITATIONS OF THE STUDY

1. The study is confined to the city of Hyderabad only.

2. The respondents were generally co-operative, yet some of them might have

biased their reply for certain sensitive questions

3. The duration of the study is also in accordance with the academic objective of

the course curriculum. So in pursuit of academic exercise, the restriction on

time has also brought into study some limitations.

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INTRODUCTION TO BANKING INDUSTRY

Banking in India originated in the last decades of the 18th century. The oldest bank in

existence in India is the State Bank of India, a government-owned bank that traces its

origins back to June 1806 and that is the largest commercial bank in the country.

Central banking is the responsibility of the Reserve Bank of India, which in 1935

formally took over these responsibilities from the then Imperial Bank of India,

relegating it to commercial banking functions. After India's independence in 1947, the

Reserve Bank was nationalized and given broader powers. In 1969 the government

nationalized the 14 largest commercial banks; the government nationalized the six

next largest in 1980.

The Indian Banking industry, which is governed by the Banking Regulation Act of

India, 1949 can be broadly classified into two major categories, non-scheduled banks

and scheduled banks. Scheduled banks comprise commercial banks and the co-

operative banks. In terms of ownership, commercial banks can be further grouped into

nationalized banks, the State Bank of India and its group banks, regional rural banks

and private sector banks (the old/ new domestic and foreign). These banks have over

67,000 branches spread across the country.

The first phase of financial reforms resulted in the nationalization of 14 major banks

in 1969 and resulted in a shift from Class banking to Mass banking. This in turn

resulted in a significant growth in the geographical coverage of banks. Every bank

had to earmark a minimum percentage of their loan portfolio to sectors identified as

“priority sectors”. The manufacturing sector also grew during the 1970s in protected

environs and the banking sector was a critical source. The next wave of reforms saw

the nationalization of 6 more commercial banks in 1980. Since then the number of

scheduled commercial banks increased four-fold and the number of bank branches

increased eight-fold.

After the second phase of financial sector reforms and liberalization of the sector in

the early nineties, the Public Sector Banks (PSB) s found it extremely difficult to

compete with the new private sector banks and the foreign banks. The new private

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sector banks first made their appearance after the guidelines permitting them were

issued in January 1993. Eight new private sector banks are presently in operation.

These banks due to their late start have access to state-of-the-art technology, which in

turn helps them to save on manpower costs and provide better services.

Aggregate Performance of the Banking Industry

Aggregate deposits of scheduled commercial banks increased at a compounded annual

average growth rate (CAGR) of 17.8 percent during 1969-99, while bank credit

expanded at a CAGR of 16.3 percent per annum. Banks’ investments in government

and other approved securities recorded a CAGR of 18.8 percent per annum during the

same period.

In FY01 the economic slowdown resulted in a Gross Domestic Product (GDP) growth

of only 6.0 percent as against the previous year’s 6.4 percent. The WPI Index (a

measure of inflation) increased by 7.1 percent as against 3.3 percent in FY00.

Similarly, money supply (M3) grew by around 16.2 percent as against 14.6 percent a

year ago.

Interest Rate Scene

The two years, post the East Asian crises in 1997-98 saw a climb in the global interest

rates. It was only in the latter half of FY01 that the US Fed cut interest rates. India has

however remained more or less insulated. The past 2 years in our country was

characterized by a mounting intention of the Reserve Bank of India (RBI) to steadily

reduce interest rates resulting in a narrowing differential between global and domestic

rates.

Government initiatives

During 2008-09 (as per data up to November 18, 2008), as per RBI guidelines,

scheduled commercial banks (SCBs) increased their deposit rates for various

maturities by 50-175 basis points. The interest rates range offered by public sector

banks (PSBs) on deposits of maturity of one year to three years increased to 9.00-

10.50 per cent in November 2008 from 8.25-9.25 per cent in March 2008. On the

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lending side, the benchmark prime lending rates (BPLRs) of PSBs increased to 13.00-

14.75 per cent by November 2008 from 12.25-13.50 per cent in March 2008. Private

sector banks and foreign banks also increased their BPLR to 13.00-17.75 per cent and

10.00-17.00 per cent from 13.00-16.50 per cent and 10.00-15.50 per cent,

respectively, during the same period.

Bank initiatives

Since December 2008, the government has announced series of measures to augment

flow of credits to around US$ 2, 66,274 to SMEs. To improve the flow of credit to

industrial clusters and facilitate their overall development, 15 banks operating in

Orissa including the public sector State Bank of India (SBI) and the Small Industries

Development Bank of India (SIDBI) have adopted 48 clusters specially in sectors like

engineering tools, foundry, handloom, food processing, weaving, rice mill, cashew

processing, pharmaceuticals, bell metals and carpentry etc.

Recent Banking Development in India

The Indian banking sector has witnessed wide ranging changes under the influence of

the financial sector reforms initiated during the early 1990s. The approach to such

reforms in India has been one of gradual and non-disruptive progress through a

consultative process. The emphasis has been on deregulation and opening up the

banking sector to market forces. The Reserve Bank has been consistently working

towards the establishment of an enabling regulatory framework with prompt an

effective supervision as well as the development of technological and institutional

infrastructure.

Statutory Pre-emptions

In the pre-reforms phase, the Indian banking system operated with a high level of

statutory preemptions, in the form of both the Cash Reserve Ratio (CRR) and the

Statutory Liquidity Ratio (SLR), reflecting the high level of the country’s fiscal

deficit and its high degree of monetisation. Efforts in the recent period have been

focused on lowering both the CRR and SLR. The statutory minimum of 25 per cent

for the SLR was reached as early as 1997, and while the Reserve Bank continues to

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pursue its medium-term objective of reducing the CRR to the statutory minimum level

of 3.0 per cent, the CRR of the Scheduled Commercial Banks (SCBs) is currently

placed at 5.0 per cent of NDTL (net demand and time liabilities). The legislative

changes proposed by the Government in the Union Budget, 2005-06 to remove the

limits on the SLR and CRR are expected to provide freedom to the Reserve Bank in

the conduct of monetary policy and also lend further flexibility to the banking system

in the deployment of resources.

CREDIT CARDS IN INDIA

Credit card or the plastic money, as it is popularly referred to, was slow to enter the

Indian market because of the high sentimental value that Indian consumers attach to

hard cash. Prevalence of small value transaction, credit shy culture and inadequate

banking habits of the population were other hindrances.

Credit cards arrived in India about two decades ago. In the early stages its growth was

very slow in terms of number and value. Even the number of players was limited and

mainly foreign banks like HSBC, Citibank and Standard Chartered Bank dominated

the market. Indian banks did not show much interest in the product in the initial

stages. This is evident from the fact that it took State Bank of India (SBI), India’s

largest bank, almost a decade to begin dealing in credit cards. SBI, despite its

widespread reach, has aggressively started promoting credit cards only three years

ago.

However, in the recent past the scenario has changed dramatically. The number of

nationalized and private banks issuing credit cards has increased significantly. Credit

cards are now not only integral parts of the consumer’s life in metros, but even

residents of smaller cities and towns have taken to them. This can be attributed to the

aggressive strategy of nationalized and private banks to promote card products in

smaller town and cities. These banks have far wider reach and depth in smaller cities

and town as compared to foreign banks. They have capitalized on this advantage to

play a major role in expanding the credit card base in terms of number and usage in

smaller cities and town.

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Transactions using plastic money involve the payment of a small fee to the issuing

bank in the form of an application/joining fee and an annual fee. Consumers collect a

percentage-based commission in the form of reward points for card usage at

shops/establishments. The usage of credit card is very simple and easy. The

consumers do not have to carry cash and can use the card to pay their

shopping/restaurant bills. All you are required to do is give your credit card at the

payment counter, the person handling the counter swipes the card into the system to

check the details of the card and you need to sign on the bill. The payment is done

electronically. With only a signature your payment is taken care of. Isn’t it very

simple?

Yes it is, but everyone isn’t eligible for a credit card. There are certain requirements,

varying across banks, to get a credit card. Typically credit card companies (or issuing

banks, as they are known) require the applicant to have a minimum income level

before he can apply for the card. Proof of income is given by way of documents.

These documents could be a copy of tax return filed; salary slips if applicable, balance

sheet and profit and loss account detail if you are self-employed. These serve as the

starting point while applying for a card. The minimum income level varies from bank

to bank and fluctuates between Rs 60,000 - 150,000 per annum depending upon your

risk profile and the type of card. This requirement helps the issuing bank to assess

whether or not you will be able to repay the expenses incurred through your credit

card. In addition to income eligibility, you need to be at least 21 years of age

(maximum 65 years).

There is no doubt that credit cards are very convenient, especially in case of daily

expenses. In addition you earn bonus points while you spend via the card. It is

because of these reasons that in the recent past card usage has increased dramatically.

In fact, plastic currency has almost wiped off hard currency from the US, resulting in

far less expenditure associated with cash transactions.

Currently, four major bishops are ruling the card empire - Citibank, Standard

Chartered Bank, HSBC and State Bank of India (SBI). The industry, which is catering

to over 3.8 million1 card users, is expected to double by the fiscal 2003. According to

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a study conducted by State Bank of India, Citibank is the dominant player, having

issued 1.5 million cards so far. Standard Chartered Bank follows way behind with

0.67 million, while Hongkong Bank has 0.3 million credit card customers. Among the

nationalized banks, SBI tops the list with 0.28 million cards, followed by Bank of

Baroda at 0.22 million.

COMPANY PROFILE

ICICI Bank is India's second-largest bank with total assets of Rs. 3,997.95 billion

(US$ 100 billion) at March 31, 2008 and profit after tax of Rs. 41.58 billion for the

year ended on March 31, 2008. ICICI Bank is the second amongst all the companies

listed on the Indian stock exchanges in terms of free float market capitalisation. The

Bank has a network of about 1,308 branches and 3,950 ATMs in India and a presence

in 18 countries. ICICI Bank offers a wide range of banking products and financial

services to corporate and retail customers through a variety of delivery channels and

through its specialised subsidiaries and affiliates in the areas of investment banking,

life and non-life insurance, venture capital and asset management or wealth

management. The Bank currently has its subsidiaries in the United Kingdom, Russia

and Canada, branches in Unites States, Singapore, Bahrain, Hong Kong, Sri Lanka,

Qatar and Dubai International Finance Centre and representative offices in United

Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia.

The bank’s UK subsidiary has established branches in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange (BSE) and

the National Stock Exchange of India Limited and its American Depositary Receipts

(ADRs) are listed on the New York Stock Exchange (NYSE).

Vision of ICICI Bank:

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Over the last few years, the ICICI Bank has taken rapid strides in developing new

businesses in line with its proposition to offer complete financial services to both

corporate and retail customers.

With the recent addition of insurance, the proposition of ICICI Bank is now fulfilled.

Going forward, the challenge for ICICI will be to continue innovating to improve

market shares and maintain its competitive edge. In this endeavour, ICICI will

continue to benchmark with global best practices to ensure optimum utilization of its

resources and the finest exposure to its work force. The speed with which it has been

able to transform the organization and successfully start so many new businesses is

almost singularly owing to the skills, enterprise and the depth of its human resources.

ICICI Bank is committed to enriching this valuable resource which in turn, will allow

it to bring innovative practices to the world of financial services in India. With

technology playing the key role mainly.

The vision is to develop ICICI Bank into an organization that is empowered by bright

and talented individuals, working in teams and riding on the backbone of world class

technology.

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History

The ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian

financial institution, and was its wholly owned subsidiary. ICICI's shareholding in

ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal

year 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal year

2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock

amalgamation in fiscal year 2001, and secondary market sales by ICICI to

institutional investors in fiscal year 2001 and fiscal year 2002. ICICI was formed in

year 1955 at the initiative of the World Bank, the Government of India and

representatives of Indian industry. The principal objective was to create a

development financial institution for providing the medium-term and long-term

project financing to Indian businesses. In the 1990s, the ICICI transformed its

business from a development financial institution offering only single project finance

to a diversified financial services group offering a wide variety of products and

services, both directly and through a number of subsidiaries and affiliates like ICICI

Bank. In 1999, the ICICI become the first Indian company and the first bank or

financial institution from non-Japan Asia to be listed on the New York Stock

Exchange (NYSE).

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry, and the move towards

universal banking scenario, the managements of the ICICI and ICICI Bank formed the

view that the merger of ICICI with ICICI Bank would be the optimal strategic

alternative for both of the entities, and would create the optimal legal structure for the

ICICI group's universal banking strategy. The merger would enhance value for the

ICICI shareholders through the merged entity's access to low-cost deposits, much

greater opportunities for earning fee-based income and the ability to participate in the

payments system and provide transaction-banking services. The merger would

enhance value for the ICICI Bank shareholders through a large capital base and scale

of operations, seamless access to ICICI's strong corporate relationships built up over

five decades, entry into new business segments, higher market share in various

business segments, particularly fee-based services, and access to the vast talent pool

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of the ICICI and its number of subsidiaries. In October 2001, the Boards of Directors

of the ICICI and ICICI Bank approved the merger of ICICI and two of its wholly

owned retail finance subsidiaries, the ICICI Personal Financial Services Limited and

the ICICI Capital Services Limited, with the ICICI Bank. The merger was approved

by shareholders of the ICICI and ICICI Bank in January 2002, by the High Court of

Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at

Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the

ICICI group's financing and banking operations, both the wholesale and retail, have

been integrated in a single i.e. the ICICI Bank.

MARKETING STRATEGIES

ICICI Bank uses the concept of Universal Banking.

Universal Banking Concept:

In universal banking, large banks operate extensively in networks of branches,

provide many different services, hold several claims on firms (including equity and

debt), and participate directly in the corporate governance of firms that rely on the

banks for funding or as insurance underwriters. It means the ability to offer i.e. sell

and underwrite all the types of products and services to any set of clients, either

through a single or through a group of companies. The practice of Universal Banking

varies across several countries. India faces a very high regulatory burden although

now a conglomerate structure of the universal banking has already been

permitted .Many international players like ABN-AMRO, Citigroup, HSBC, Deutsche

Bank, JP Morgan Chase, Lehman Brothers have realized the benefits of Universal

Banking. The ICICI Bank has also joined these international players. The ICICI Bank

functions as a universal bank through itself and its associate companies in the areas of

corporate finance, commercial banking, personal banking, investment banking, asset

management, investor services and insurance. The Universal Banking provides

competitive advantage in the current scenario through large product suite, diversified

resource base, Economies of scale and scope, Optimization of human and financial

capital.

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In a span of just four years, the ICICI Bank has emerged as a consumer banking

behemoth. With a retail book of over Rs 56,000 crores (Rs 560 billion) and a market

share that is the envy of competition -- it has a share of over 30 per cent – The ICICI

Bank today has reached a commanding position.

The bank boasts of the widest integrated technology platform in the country and only

a fourth of its business takes place at its branches and subsidiaries.

Its legacy of non-performing assets (NPAs) -- for which it has been rated below its

peers earlier -- is now almost history with net NPLs (non-performing loans) down to 2

per cent.

Armed with a much stronger balance sheet, the ICICI Bank is aggressively foraying

into overseas markets and also has an eye on the rural India.

Rural India is an opportunity, somewhat premature, but in the next 12-18 months the

bank’s strategy will be seen there. Bank is looking at new agri lending as something

that is directed; it's a viable business proposition, but it has to be driven very

carefully. The bank can't have branches there because that is not workable in terms of

costs.

The solution to this problem is to partner with the micro-credit institutions, corporate

providing inputs or buying products from the farmer and self-help groups.

Major Steps Taken:

In 2001 ICICI acquired the Bank of Madura (est. In 1943). The Bank of Madura was

a Chettiar bank, and had acquired the Chettinad Mercantile Bank (est. In 1933) and

the Illanji Bank (est. in 1904) in the 1960s.

In 2007 ICICI amalgamated the Sangli Bank, which was headquartered in Sangli, in

Maharashtra State, and which had 158 branches in Maharashtra state and another 31

in Karnataka State. ICICI also received permission from the government of Qatar to

open a branch in Doha and from the US Federal Reserve to open a branch in New

York city. ICICI Bank Eurasia opened a second branch in St. Petersburg.

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In 2008 the ICICI Bank launched iMobile, a comprehensive Mobile banking

solution. iMobile is considered to be a breakthrough innovation in the Indian Banking

which allows a customer to do all possible transactions through a GPRS-enabled

mobile phone easily and conveniently.

Global Market Strategy:

The global opportunity spectrum is changing dramatically, and in the next three years,

the bank’s global business will contribute one-third of the book top line and bottom-

line. Today it's about only 10-12 per cent. The NRI (people living abroad) is a great

customer and the other is the Indian corporate who is globalising -- either in the trade

business or is setting up businesses abroad.

Bank’s USP (unique selling proposition) is a unique technology; it can get customers

to talk to his constituents online. The NRI is an interesting link because today he has

tremendous needs in India; he wants to remit money, purchase a commodity, buy a

home, especially the H1 visa guys. This year 10 per cent of the home loans will be

lended to NRIs.

In the United Kingdom the ICICI bank have a partnership with Lloyds Bank and are

present in 30 branches there, promoting joint products, and they get new customers.

In the United States the ICICI bank have a tie-up with Wells Fargo and their

customers can start a remittance into India from any channel.

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ADVERTISING STRATEGY:

Amitabh Bachchan as brand ambassador of ICICI:

Under the agreement, Mr. Amitabh Bachchan endorsed and promoted all the products

and services offered by ICICI and its Group companies for a period of two years.

During his term as the brand ambassador, he played a key role in all major brand and

product communication by ICICI. He endorsed the ICICI brand through corporate and

product campaigns on television, print and outdoor medium. Mr. Bachchan also

participated in select events such as new product launches, various campaigns, and

customer reward programmes etc.

ShahRukh Khan as global brand ambassador of ICICI:

After Mr. Bachchan the ICICI Bank has decided to resort to the celebrity endorsement

route to promote its brand. Almost two-and-a-half years since superstar Amitabh

Bachchan endorsed the ICICI brand, the company has signed up Shah Rukh Khan as

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its global ambassador. Shah Rukh Khan whose increasing global popularity gives

synergy to the growing global presence of ICICI Bank.

Shahrukh Khan is a truly global Indian who embodies the Indian winning spirit in a

true sense. The energy and innovation which Shahrukh Khan represents coupled with

his popularity both in India and abroad make him the ideal choice for the ICICI Bank,

particularly as the Bank makes its global forays. Within a short span of four years, the

ICICI Bank has established its presence in 12 countries including UK, Canada, US

and the Middle East.

PRODUCT OFFERINGS

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1) DEPOSITS

ICICI Bank offers wide variety of Deposit Products to suit the

requirements of the customers. Convenience of networked branches/ ATMs

and facility of E-channels like Internet and Mobile Banking.

a) Savings Account : A Savings Account for everyone with a host of

convenient features and banking channels to transact through. So now

people can bank at their convenience, without the stress of waiting in

queues. ICICI service savings accounts with 8 to 8 banking and ‘out of

branch’ banking.

b) Life Plus Senior Citizens Savings Account :

ICICI Bank understand that a Savings Account needs to do more after

people reach the age of seniority; the bank understand customers concerns

for safety and security. The bank has an ideal Savings Bank Service for

those who are 60 years and above. The Senior Citizen Services from

ICICI Bank has several advantages that are tailored to bring more

convenience and enjoyment in their life.

c) Young Stars Savings Account :

It's really important to help children learn the value of finances and money

management at an early age. Banking is a serious business, but ICICI

make banking a pleasure and at the same time fun. Children learn how to

manage their personal finances.

d) Fixed Deposits :

ICICI provides Safety, Flexibility, Liquidity and Returns in the case of

fixed deposits.

A combination of unbeatable features of the Fixed Deposit from ICICI

Bank.

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e) Recurring Deposits

When expenses are high, people may not have adequate funds to make big

investments. An ICICI Bank Recurring Deposit lets the customers

invest small amounts of money every month that ends up with a large

saving on maturity. So the customers enjoy twin advantages- affordability

and higher earnings.

f) Easy Receive Savings Account :

Easy receive account is a unique savings account that caters to domestic

banking needs, while offering additional benefits for remittances received

in the account from abroad.

2) Loans: ICICI Bank offers wide variety of Loans Products to suit your

requirements. Coupled with convenience of networked branches/ ATMs and

facility of E-channels like Internet and Mobile Banking, ICICI Bank brings

banking at customer’s doorstep.

a) Home Loans:

The No. 1 Home Loans Provider in the country, ICICI Bank Home Loans

offers some unbeatable benefits to its customers - Doorstep Service,

Simplified Documentation and Guidance throughout the Process.

b) Personal Loans:

If customers wants personal loan that's easy to get with the help of ICICI

Bank. ICICI Bank Personal Loans are easy to get and absolutely hassle free.

With minimum documentation people can now secure a loan for an amount up

to Rs. 15 lakhs.

c) Car Loans:

ICICI Bank is the No. 1 financier for car loans in the country. It has network

of more than 2500 channel partners in over 1000 locations. It has tie-ups with

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all leading automobile manufacturers to ensure the best deals. A number of

flexible schemes & quick processing are available. Hassle-free application

process is available on the click of a mouse.

d) Commercial Vehicle Loans:

Range of services on existing loans & extended products like funding of new

vehicles, refinance on used vehicles, balance transfer on high cost loans, top

up on existing loans, extend product, working capital loans & other banking

products.

Two Wheeler Loans

Customers can avail attractive schemes at competitive interest rates from the No 1

Financier for Two Wheeler Loans in the country. There is finance facility up to 90%

of the On Road Cost of the vehicle, repayable in convenient repayment options and

comfortable tenors from 6 months to 36 months.

e) Farm Equipment Loans:

ICICI is the preferred financier for almost all leading tractor manufacturers in

the country. There is flexible repayment options in tandem with the farmer's

seasonal liquidity. They can choose from Monthly, Quarterly and Half-yearly

repayment patterns. There are comfortable repayment tenures from 1 year to 9

years.

f) Business Instalment Loans:

Business Instalment Loan (BIL) by ICICI Bank helps the entities take giant

strides by fulfilling their business requirements, be it working capital

requirement, business expansion or to grab that once in a lifetime business

opportunity.

23

3) CARDS:

ICICI Bank offers a variety of cards to suit different transactional needs of its

customers. Its range includes Credit Cards, Debit Cards and Prepaid cards. These

cards offer customers convenience for their financial transactions like cash

withdrawal, shopping and travel. These cards are widely accepted both in India and

abroad.

a) Credit Cards:

Credit Cards give customers a smart way to shop, and offer them flexibility and

convenience in managing their finances. ICICI Bank credit cards provide a host of

exciting offers and benefits to the customers such as low interest rates, rewards

programs, and a high credit and cash limit. The bank offer different types of credit

cards to suit the different needs and requirements for added features

b) Travel Cards:

The traveller’s card is the Hassle Free way to Travel the world. Customers travelling

with US Dollar, Euro, Pound Sterling or Swiss Francs; Looking for security and

convenience; can opt for ICICI Bank Travel Card. It is issued in duplicate. It offers

Pin based security and has the convenience of usage of Credit or Debit card.

Alliance Products:

1) Wells Fargo, USA

ICICI Bank has joined hands with Wells Fargo to bring customers unprecedented

convenience for sending money to India. Customers can just call or walk into any

Wells Fargo branch and send money to anyone having an eligible ICICI bank account.

Customers just need to enrol in the Wells Fargo Express Send Global Remittance

Service to India to be able to transfer money from your eligible Wells Fargo checking

or savings account to the beneficiary's ICICI bank account. Client’s transferred funds

will be available in the beneficiary's ICICI bank account as soon as the next business

day.

24

To avail of this economical, convenient and dependable way to send money home to

India, just open a Wells Fargo Express Send Service Agreement and ensure that the

beneficiary has an eligible account with ICICI bank.

Benefits

a) Fast – The money will reach India in a day’s time

b) Convenient – Customer get 24-hour access to Wells Fargo branches and telephone

banking services across the USA

c) Nominal charges – Flat fee of as low as $5 to send up to $3,000 per day. Customer

may even be eligible for a waiver of this fee based on the account relationship with

Wells Fargo.

d) No monthly or annual service fees or setup fee for the Wells Fargo Express Send

Service

e) Competitive exchange rates – The customer can get the latest rates by calling

Wells Fargo at 1-800-556-0605.

2) Lloyds TSB - India Banking Service

India Banking Service is collaboration between ICICI Bank and Lloyds TSB, offering

people of Indian origin living in the UK access to a wide network of branches and

ATMs across India and the UK. Customers can now manage their accounts in the UK

and India from a single, convenient location.

a) Convenience of opening ICICI Bank NRE Accounts at participating Lloyds

TSB branches.

b) Access to the ICICI Bank account to family members in India

c) Easy Money Transfers at nominal costs

d) Fast transactions - within 4 working days

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Corporate Banking:

ICICI Bank offer corporate a wide range of products and services, the technologies to

leverage them anytime, anywhere and the expertise to customize them to client-

specific requirements.

From cash management to corporate finance, from forex to acquisition financing,

ICICI bank provide the customers with end-to-end services for all your banking

needs. The result is an overall financial solution for the company that helps customers

accomplishes their objectives.

1) ICICI Bank can guide people through the universe of strategic alternatives -

from identifying potential merger or acquisition targets to realigning their

business' capital structure.

2) ICICI Bank has been the foremost arrangers of acquisition finance for cross

border transactions and is the preferred financer for acquisitions by Indian

companies in overseas markets.

3) The Bank has also developed Forex risk hedging products for clients after

comprehensive Research of the risks a corporate body is exposed to, e.g.,

Interest Rate, Forex, Commodity Credit Risk, etc.

4) ICICI bank offer the customers global services through their correspondent

banking relationship with 950 foreign banks and maintain a NOSTRO

account in 19 currencies to Service people better and have strong ties with

the neighbouring countries.

5) ICICI Bank is the leading collecting bankers to Public & Private

Placement/ Mutual Funds/ Capital Gains Bonds issues. Besides, the bank

have products specially designed for the financial intermediaries to meet their

unique requirements.

6) ICICI support customer’s international business by meeting working capital

requirements of export and import financing. The Bank also has a host of non-

funded services for their clients.26

7) Whatever customer’s industry, size or financial requirements, ICICI Bank has

the expertise and the solutions to partner them all the way.

Transaction Banking

The Bank delivers world class banking services to the financial sector clients. ICICI’s

current roaming accounts empower people with 'Anytime, Anywhere Banking'. They

are designed for the customer’s convenience. The comprehensive collection and

payment services span India's largest CMS network of over 4,500 branches. The bank

provides correspondent banking tie-ups with foreign banks to assist them in their

India-related businesses.

Buyouts

As a part of a risk-diversification and portfolio-churning strategy, ICICI Bank offers

buyouts of the assets of its financial sector clients.

Resources

The Bank also raises resources, from clients, for internal use by issuing a gamut of

products, which run from Certificates of Deposit (CDs) to Term deposits to Term

Loans.

Financial Institution:

ICICI Bank services the financial sector for the entire set of banking requirements and

provides a complete range of solutions. The Financial Institutions and Syndication

Group (FISG) are responsible for ICICI Bank's relationship with the financial sector.

Under this umbrella, the Bank caters exclusively to the needs of:

1) Different domestic financial Institutions

2) Banks

3) Insurance Companies

4) Mutual Funds27

5) Fund Accounting

The FISG has built strong relationships through various interactive measures, like

seminars, training programs, sharing of market information and views with clients,

organizing the Bank CEOs' Forum, etc.

Government Sector:

The Bank aim to leverage their superior technology platform and on their ability to

deliver solutions customized to meet the specific needs of each client to emerge as the

preferred banker for all government departments and government corporations.

Services to the Government Sector:

ICICI Bank acts as bankers to several government organisations. They have a wide

range of services designed to serve the government sector. Their dedicated

relationship managers have the requisite experience and training to look after their

unique needs.

SME BANKING:

Client’s business now has end to end solutions on which one can depend. From the

anytime anywhere convenience of Roaming Current Account to forex remittance

services that simplify and speed up the business.

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Current Account:

Roaming Current Account:

With the Roaming Current Account (RCA), customers can enjoy the convenience of

Anytime Anywhere banking. They can operate their RCA from any ICICI Bank

branch in any city. RCA offers a wide range of variants that include:

• Standard

• Classic

• Premium

• Gold

• Gold Plus

• Platinum

These variants are based on committed Quarterly Average Balance with differential

charges applicable to each variant. Customers can choose the variant most suitable for

their business requirements. They even have the flexibility of changing their current

29

account variant every quarter based on their changing business needs. It also offers

the facilities of International Business Banking Debit Card, Internet Banking, Phone

Banking, E-mail Banking & Mobile Banking.

Services:

ICICI Bank offers products and services tailored to meet customer’s industry's unique

needs.

1) Automotive:

The automotive sector in India is booming as Indians take to cars and two-wheelers

like never before. The world’s biggest brands are already here, with many more to

follow. India is also fast becoming an important manufacturing hub for the major

players in the world. Their OEM suppliers are also following in their footsteps to set

up base in India.

Recognising the unique needs of automotive & auto component manufacturers, ICICI

Bank has set up a team of automotive specialists who can tailor-make a solution that

suits customer’s business.

The bank’s long-term relationships with leading auto-manufacturers ensure customers

get the quickest turnaround times possible, with the network of more than over 600

branches and 1800 ATMs giving them 24/7 accessibility. A single-window access to

all the banking solutions customers may need ensures quick approvals and minimal

paperwork. ICICI’s modern approach to business banking backed by their superior

technology helps provide swift anytime, anywhere banking services via our

branch/ATM network, phone, mobile and Internet.

With a Relationship Manager always at customer’s beck and call, there will be

nothing to stop customer’s business from speeding ahead.

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2) Construction:

The Indian economy is growing at a rapid pace. Predictably, the construction sector

estimated at Rs. 3, 00,000 crores is booming as well, be it infrastructure or

commercial retail and residential space. An outlay of over Rs. 18, 00,000 crores is

projected over the next 10 years.

ICICI Bank has pulled out all stops to ensure customers get all the financial support

they need to take advantage of the opportunities and face the unique challenges in this

sector. The bank’s in-house construction industry specialists will customize end-to-

end solutions for customer’s right from the bidding process and implementation of the

project through to the defect liability period. These range from Performance &

Financial Guarantees to term loans for Equipment Financing & working capital

facilities to buy raw materials.

ICICI’s modern approach to business banking backed by our superior technology

helps provide swift anytime, anywhere banking services via the branch/ATM

network, phone, mobile and Internet. Whether customers are a small contractor

striving to grow, or an established player seeking to grow globally, ICICI Bank

provides the foundation to grow their business.

3) Pharmaceuticals:

Whether it's the challenges of Schedule M or awareness of best practices, nobody

understands the fundamental issues of the pharma business better than customers.

Except, perhaps, ICICI Bank.

Recognising the need to stay abreast of the latest developments in this rapidly

evolving sector, the bank’s team of pharma specialists bring to the table just the

expertise customer’s business needs. Whether customers are involved with

formulations or APIs – for local or global markets, what customers get is a potent

mixture of industry understanding backed by working capital facilities, forex services

and special lending programs customised for you.

31

It is a platform to provide value to the pharmaceutical manufacturing customers of

ICICI Bank through focus, innovation and sharing. The bank’s modern approach to

business banking backed by their superior technology helps provide swift anytime,

anywhere banking services via their branch/ATM network, phone, mobile and

Internet.

4) Apparels:

The export quota regime has been dismantled ushering in an era of open competition.

China may be the leader by far in terms of sheer volume. But there are plenty of value

opportunities both as a mass manufacturer and as a leading player in the value-added

premium segments. Many Indian suppliers are already modernizing and diversifying

their operations to meet pressures of scale and speed of delivery.

The Indian domestic market too is witnessing a huge transformation and growth in

organized retail space across malls, departmental stores and premium boutiques.

Customers are brand-hungry and ready to pay premiums to make lifestyle and

personal statements. New players are emerging in regional and national markets.

ICICI Bank is geared to meet customers’ requirements in the apparel sector through

strong solutions for all their needs:

1) Term loans in rupee and foreign currency with TUFS benefits for financing of

expansion and modernisation plans.

2) Competitively priced working capital and other products (including export

finance in foreign currency) in order to optimise costs of lending.

3) Sophisticated derivative product delivered in a simplified and convenient

manner as a source of hedging and optimising profits.

Finally, ICICI Bank has cut down approval time by standardising the assessment

process through use of scoring models.

32

5) Transport:

Indian road transport industry is witnessing a sea-change. Infrastructure investments

in highways and ports, entry of professional 'outsourced' logistics service companies

in the corporate sector, introduction of tracking technology, better quality and more

choice of vehicles - all this is opening up new opportunities and challenges.

The growth of domestic tourism and migration is leading to increase in travel while

the growth of connectivity is creating new paths of commerce and business.

ICICI Bank offers those in the transport business a host of advantages. From faster

sanction due to parameters-based approach, to interest cost savings according to

usage. A Relationship Manager is the single point contact for all customers needs.

ICICI Bank's Roaming Current Account makes a powerful difference to customer’s

business. Bank and withdraw money in any branch or ATM across the country. Bank

anytime from 8 a.m. to 8 p.m. at any of the branches. It helps in transferring funds

without a cheque or a DD, through a phone call or through Internet Banking. It uses

the cash management services for collections and payments across the country.

6) Gems & Jewellery:

The Gems & Jewellery industry in India is witnessing downstream integration into the

retail space, alliance marketing with end customers in the export arena, and overall

dynamic growth in domestic and international markets, across the B2B and B2C

space.

ICICI Bank has been serving firms in gems and jewellery sector with comprehensive

services and in-depth expertise.

ICICI have a range of credit facilities and derivative products at competitive rates.

The bank’s Gems and Jewellery experts know exactly the customer’s business needs.

Or, if it's convenience customer’s require, bank’s vast network of branches and ATMs

are just the thing for the customers. Additionally, ICICI Bank's international

experience and expertise in the global jewellery trade gives customers the most

complete forex products and advisory services you need to stay ahead of competition.33

7) Travel & Tourism:

ICICI Bank’s industry-specific solutions help customer leverage every opportunity for

growth and maximize their profits. Bank’s team of industry experts customizes

solutions designed to fit customer’s unique business requirements. Customer’s

leverage the ‘anytime anywhere’ business banking advantage to manage their finances

efficiently and easily. With the national reach and global network, the bank can now

take the business places.

Industry solutions

Funding solutions for Hotels, Travel & Tourism sector: ICICI provide project finance

in the form of term loans or working capital against card receivables. Rapid Travellers

Cheque Program: The bank purchase TC's from Money Changers on prefixed

transaction exposure/volume. Special Foreign Currency Tour Operators Account: The

bank handle collections of foreign currency and remittances from the outbound tour

operators and inward remittances, for hotels and tour reservation made abroad.

Derivatives for Risk Mitigation: ICICI help customers hedge the foreign currency

inward remittances and local currency outward remittances through our forex

services.

ICICI’s customers include

Hotels

Aviation Training Institutes

Money Changers

Tour Operators

Ticketing Agents Consolidators

Travel Vocational Training Institutes

Travel Portals

8) Educational Institutions:

34

Whether the customer’s companies are govt. aided or privately managed, in primary,

secondary or higher education, they need a bank that understands your special needs.

Be it long-term loans for infrastructure expansion or cash credit, ICICI Bank works

with accredited & recognized educational institutions all over India, and offers the

clients some of the best options for growth and expansions.

DEMAT SERVICES:

Demat Services

ICICI Bank Demat Services boasts of an ever-growing customer base of over 11.5

lacs account holders. In ICICI’s continuous endeavour to offer best of the class

services to the customers the bank offer the following features:

e-Instructions: Customers can transfer securities 24 hours a day, 7 days a week

through Internet & Interactive Voice Response (IVR) at a lower cost. Now with

"Speak to transfer", customer can also transfer or pledge instructions through our

customer care officer.

Consolidation Demat Account: Customers can dematerialise the physical shares in

various holding patterns and consolidate all such scattered holdings into the primary

demat account at reduced cost.

Digitally Signed Statement: Customers can receive the account statement and bill by

email.

Corporate Benefit Tracking: Customers can track the dividend, interest, bonus

through the account statement.

Mobile Request: Customers can access the demat account by sending SMS to enquire

about Holdings, Transactions, Bill & ISIN details.

35

Mobile Alerts: Customers can receive SMS alerts for all debits/credits as well as for

any request which cannot be processed.

1. Dedicated customer care executives specially trained at the bank’s call centre,

to handle all their queries.

2. Countrywide network of over 235 branches, customers are never far from an

ICICI Bank Demat Services outlet.

ICICI Bank is issuing 29 separate credit cards in India. These cards cater to a

wide client base including sports lovers and businessmen for example.

ICICI Signature Credit Card

Following are some points on ICICI Signature Credit Card:

Cardholders get 5 points for International Spends worth INR 100.

Joining fee is INR 25,000.

Cardholders receive air accident insurance cover worth INR 3 crores.

Renewal fee is INR 2,500.

Cardholders receive Free Welcome gifts of INR 35,000. Prizes could be Tag

Heuer watches, Travel Points or Travel Vouchers.

Regular interest rate and cash advance fees are 2.75% per month.

Cardholders get 2 points for spending INR 100 with the card for dining purposes.

Issuer is VISA.

Cardholders receive 4 points for spending INR 100 with the card for travel

purposes.

There are 0% fuel surcharge facilities at all outlets.

36

ICICI Bank Platinum Credit Card

Following are some features of ICICI Bank Platinum Credit Card:

Cardholders get access to airport lounges on a priority basis.

Renewal fee is INR 2,500.

Cardholders receive air accident insurance covers worth INR 1crore.

Regular interest rate is 1.99% per month.

Cash and credit limits are high.

Cash advance fee is 3.15% per month.

Cards are only offered via invitation.

Issuer is VISA.

Joining fee is INR 25,000.

There are 0% fuel surcharge facilities.

ICICI Bank Platinum Premiere Credit Card

Cardholders receive personalized concierge services.

Regular interest rate is 2.95% per month.

Cardholders receive air accident insurance covers worth INR 40 lakhs.

Cash advance fee is 3.15% per month.

Cash and credit limits are high.

Issuer is VISA.

Joining and renewal are free.

There are 0% fuel surcharge facilities at all outlets. 37

Following are other credit cards issued by ICICI Bank in India:

ICICI Bank Titanium Credit Card

ICICI BPL AMWAY Credit Card

ICICI Bank Solid Gold (Visa) Credit Card

ICICI Bank Big Bazaar Silver Credit Card

ICICI Bank Solid Gold (MasterCard) Credit Card

ICICI Bank Big Bazaar Gold Credit Card

ICICI Bank Gold American Express Â Credit Card

ICICI Bank Trinethra Credit Card

ICICI Bank Travel Smart Credit Card

ICICI Bank Orchid An Ecotel Credit Card

ICICI Bank Golf Credit Card

ICICI Bank Mohun Bagan Credit Card

ICICI Megamart Credit Card

ICICI Bank Ebony Credit Card

ICICI XBOX 360 Credit Card

ICICI Bank Airtel Silver Credit Card

ICICI Sarovar Hotels Credit Card

ICICI Bank Airtel Gold Credit Card

ICICI Bank HPCL Silver Credit Card

ICICI Bank Toyota Credit Card 38

ICICI Bank HPCL Gold Credit Card

ICICI Bank Thomas Cook Titanium Credit Card

ICICI PRU Life Credit Card

ICICI Bank Ascent American Express Credit Card

ICICI BPL Mobile Credit Card

ICICI Bank Platinum Identity Credit Card

ICICI Bank Platinum Credit Card

Following are some salient features of ICICI Bank Platinum Credit Card:

1. Cardholders receive priority access facilities to airport lounges.

2. Regular interest rate is 1.99% per month.

3. Cardholders receive air accident insurance coverage worth INR 1 crore.

4. Cash advance fee is 3.15% per month.

5. Cardholders have higher cash limits and credit limits.

6. Card issuer is VISA.

7. The card is offered via invitation only.

8. Issuing bank is ICICI Bank.

9. Joining fee is INR 25,000.

10. There are 0% fuel surcharge facilities.

11. Renewal fee is INR 2,500.

39

MARKETING:

The term market is the root word for the word marketing, market refers to the

location where exchanges between buyers and sellers occur. Marketing pertains to the

interactive process that requires developing, pricing, placing, and promoting goods,

ideas, or services in order to facilitate exchanges between customers and sellers to

satisfy the needs and wants of consumers.

Needs and Wants:

Needs are the basic items required survival. Human needs are an essential

concept underling the marketing process because needs are translated into consumers

wants. Human needs take one of three forms: physical, social, and individual. Wants

are needs that are shaped by both cultural influences and individual preferences. Want

are often described as goods, ideas, and services that fulfill the needs of an individual

consumer. The wants of individuals change as both society and technology change.

Definition:

Marketing, as suggested by the American Marketing Association, is “an

organizational function and a set of processes for creating, communicating and

delivering value to customers for managing customer relationships in way that benefit

the organization and its stakeholders”.

Philip kotler in his earlier books defines as:"Marketing is human activity directed at

satisfying needs and wants through exchanges processes". Add to kotlers and norris

definition a response from the chartered institute of marketing (CIM).

FOUR P’S (Marketing mix):

Product: The product management and product marketing aspects of marketing deal

with the specification of the actual good or services and how it relates to the end -

users needs and wants

Pricing: This refers to the process of setting a price for a product including discounts.

40

Promotion: This includes advertising sales promotion publicity and personnel selling

and refers to the various methods of promoting the product brand or company.

Place: Placements or distribution refers to how the product gets to the customers for

example point of sale placement or retailing. This fourth p has also sometimes been

called place, referring to where a products or services is sold, e.g.in which geographic

region or industry, to which segment (young adults, families, business people,

woman, men etc)

INTRODUCTION

Perception:

Perception can be described as "how we see the world around us". Two individuals

may be the same stimuli under apparently the same conditions, but how they

recognize them, the needs, value, expectations, and the like. The influence that each

of these variable has on the perceptual process, and it relevance to marketing, will be

examined in some detail. Fast, however, we will examine some of the basic concept

that under lies the perceptual process. Perception is the sensing of stimuli external to

the individual organism the act or process of comprehending the world in which the

individual exists.

Perception has been defined by social psychologists as the “Complex process” by

which people select organize and interpret sensory stimulation in to a meaningful and

coherent picture of the work.

It is the process by which people translate sensory impressions into a coherent and

unified view of the world around them. Though necessarily based on incomplete and

unverified (or unreliable) information, perception is equated with reality for most

practical purposes and guides human behavior in general.

41

http://www.businessdictionary.com/definition/general.html

http://www.businessdictionary.com/definition/human-behavior.html

http://www.businessdictionary.com/definition/practical.html

http://www.businessdictionary.com/definition/information.html

http://www.businessdictionary.com/definition/impressions.html

http://www.businessdictionary.com/definition/process.html

CUSTOMER PERCEPTION

A marketing concept that encompasses a customer's impression, awareness and/or

consciousness about a company or its offerings. Customer perception is typically

affected by advertising, reviews, public relations, social media,

personal experiences and other channels.

Perception is not good or bad, right or wrong, it is just the way someone judges an

experience based on their value system of what they believe should happen. Since

people are unique, each of their perceptions are unique .On the other hand each

situation is a "point of contact" with an employee that will tell the customer a "truth"

about the company's idea of customer service. Each situation will create expectations’

of what the next experience will probably be like. Companies spend considerable

amount on advertisement and in this world of competitive advantage advertisement

has to be repetitive in nature. Brand hammering results in brand recall which is a

costly affair. So companies need to understand the Customer Perception to facilitate

advertising and Sales Promotional (ASP) efforts towards a better bargain.

In today’s globalising economy competition is getting more and more fierce. That

means it becomes more difficult for products and services to differentiate themselves

from other offerings than ever before. Not only is the number of competitive offerings

rising due to globalisation of production, sourcing, logistics and access to information.

Many products and services face new competition from substitutes and from

completely new offerings or bundles from industry outsiders. Since product

differences are closed at an increasing speed and many companies try to win the battle

for customers by price reductions, products and services tend to become commodities.

On the other hand, customer behaviour becomes more hybrid. On one hand,

customers are increasingly price sensitive – searching for bargains at marketplaces

like ebay or buying their groceries at discount markets. On the other hand they enjoy

branded and luxury goods. One and the same person may plan a weekend trip with a

no-frills airline and a stay at a five-star-hotel.

42

http://www.businessdictionary.com/definition/channel.html

http://www.businessdictionary.com/definition/experience.html

http://www.businessdictionary.com/definition/social-media.html

http://www.businessdictionary.com/definition/public-relations.html

http://www.businessdictionary.com/definition/review.html

http://www.businessdictionary.com/definition/advertiser.html

http://www.businessdictionary.com/definition/company.html

http://www.businessdictionary.com/definition/awareness.html

http://www.businessdictionary.com/definition/customer.html

http://www.businessdictionary.com/definition/marketing-concept.html

In the result, customers have a wider choice of often less distinguishable products and

they are much better informed. For many offerings the balance of power shifts

towards the customer. Customers are widely aware of their greater power, which

raises their expectations on how companies should care for them.

Bringing it all together, it becomes ever more difficult to differentiate a product or

service by traditional categories like price, quality, functionality etc.

In this situation the development of a strong relationship between customers and a

company could likely prove to be a significant opportunity for competitive advantage.

This relationship is not longer based on features like price and quality alone. Today it

is more the perceived experience a customer makes in his various interactions with a

company (e.g. how fast, easy, efficient and reliable the process is) that can make or

break the relationship. Problems during a single transaction can damage a so far

favourable customer attitude.

The consequence for companies is that they have to adapt their ways of competing for

customers. Traditionally, companies have focused their efforts of customer

relationship management on issues like customer satisfaction and targeted marketing

activities like event marketing, direct marketing or advertising. Although doubtless

necessary and beneficial, these activities are not longer enough. They narrow the

relationship between company and customer down to a particular set of contacts in

which the company invests its efforts. Most likely this will produce not more than a

satisfied customer who is well aware of the companies offerings and has a positive

attitude towards them. However, a satisfied customer is not necessarily a loyal one.[2]

If a customer is satisfied that means that a product of service has met his expectations

and that he was not dissatisfied by it. Customer satisfaction is doubtlessly very

important. It is the precondition for repeat purchases and it prevents the customer

from telling others about his disappointing experiences. A loyal customer, however, is

more than a customer who frequently purchases from a company.

The difference is the emotional bond which links the customer so closely to the

company that he develops a clear preference for these products or brands and is even

43

willing to recommend them to others. Loyal customers truly prefer a product, brand or

company over competitive offerings. Thus loyalty goes beyond a rational decision for

known quality or superior price-performance-ratio. It is about the customers’ feelings

and perceptions about the brand or product.

When the customer makes his buying decision, he evaluates the benefits he perceives

from a particular product and compares them with the costs. The value a customer

perceives when buying and using a product or service go beyond usability. There is a

set of emotional values as well, such as social status, exclusivity, friendliness and

responsiveness or the degree to which personal expectations and preferences are met.

Similarly, the costs perceived by the customer, normally comprise more than the

actual price. They also include costs of usage, the lost opportunity to use an other

offering, potential switching costs etc. Hence, the customer establishes an equation

between perceived benefits and perceived costs of one product and compares this to

similar equations of other products.

Based on this, customer loyalty can be understood as to how customers feel about a

product, service or brand and whether their perceived total investments with a it live

up to their expectations.

The important point here is the involvement of feelings, emotions and perceptions. In

today’s competitive marketplace, these perceptions are becoming much more

important for gaining sustainable competitive advantage.

Customer perceptions are influenced by a variety of factors. Besides the actual

outcome – i.e. did the product or service deliver the expected function and did it fulfil

the customers need – the whole process of consumption and all interactions involved

are of crucial importance. In today’s globalised information driven economy this can

also comprise issues like

How other customers or influencing groups perceive the product or brand

The degree to which the customer feels the actual marketing campaign

addresses the most important issues

Responsiveness and service quality of any affiliates, e.g. distribution partners

44

Customer perceptions are dynamic. First of all, with the developing relationship

between customer and company, his perceptions of the company and its products or

services will change.

The more experience the customer accumulates, the more his perceptions will shift

from fact-based judgements to a more general meaning the whole relationship gains

for him. Over time, he puts a stronger focus on the consequence of the product or

service consumption.

Moreover, if the customers’ circumstances change, their needs and preferences often

change too. In the external environment, the offerings of competitors, with which a

customer compares a product or service will change, thus altering his perception of

the best offer around. Another point is that the public opinion towards certain issues

can change. This effect can reach from fashion trends to the public expectation of

good corporate citizenship. Shells intention to dump its Brent Spar platform into the

ocean significantly altered many customers perception of which company was worth

buying fuel from.

Research has been don on the impact of market share on the perceived quality of a

product.[3]Depending on the nature of the product and the customers’ preferences,

increasing market share can have positive or negative effects on how the customer

perceives the product.

Positive effects of increasing market share on customer perception

Increasing market share can send out positive signals by acting as an indicator of

superior quality that is recognised by more and more other customers. This

effect is particularly strong for premium priced products. Customers normally

assume that a product must be of exceptional quality if it can gain such an

unexpected market success despite its high price.

Many brands offer positive emotional benefits of using a product that is popular

in the markets.

The value of a product or service can rise through increasing number of users of

the same product, e.g. number of members of an online community, better

45

availability of software for popular computer systems.

Negative effects of increasing market share on customer perception

For premium and luxury products, customers may translate an increasing market

share into a loss of exclusivity and thus perceive it as less valuable.

The quality of services may suffer if they are consumed by increasing numbers

of users. Diseconomies of scales and congestions can be observed with busy

airports and many other services so that customers may look out for other

providers that promise more timely service and convenience.

The concept of customer perception does not only relate to individual customers in

consumer markets. It is also valid in business to business situations. For example, a

competitor benchmarking survey of a large industrial supplier revealed that the

market leader, although recognised for excellent quality and service and known to be

highly innovative, was perceived as arrogant in some regions. If we take into

consideration that there are about four other large players with a similar level of

quality and innovative ideas, this perceived arrogance could

develop into a serious problem. Customers here are well aware the main

characteristics of all the offerings available at the market are largely comparable. So

they might use the development of a new product generation of their own to switch to

a supplier that can serve them not better or worse, but with more responsiveness and

understanding.

Companies have done a lot to improve customer satisfaction and customer

relationships in the past. As discussed above, this will not be enough any more.

Any serious effort to manage customer perceptions starts with a good measurement

system. Companies must be truly willing to look at the whole process of interaction

through the customers eyes. For many companies, this requires a more or less

extensive shift in mindset, since most departments from development to sales will be

involved.

46

Example:

France Telecom has set up a ‘Quality of Perceived Value Lab’ at its R&D department.

Aiming at a better understanding of customer perception, this unit’s main objective is

in fact to give a better definition of the correlation that exists between technical

problems in products an those perceived by users. By anticipation customers’ feelings

on product qualities, the laboratory provides perceived quality expertise on new

solutions. Thus, France Telecom implements the issue of how customers perceive

their products as early as in the product development process.

The backbone of any customer perception management and measurement system,

however, is thorough market research and surveys. There are several aspects of

measuring customer perceptions.

First of all the company has to find out how itself and its offerings are

perceived by the customers. It is essential to identify what the customer is

actually buying and which features are most important to him. Only this way it

is possible to align the internal focus and resources to the customers

expectation. This information is of greater value if it can be compared to the

customers’ perception of competitive offerings. Not only will this reveal

relative strengths and weaknesses, it is also a valuable source of ideas for

improvement.

Besides that, surveys should also identify the relative importance of several

influencing variables in the eyes of the customer. To know what matters most

to the customer helps to set priorities for projects.

Of course, as with any market research activities, it should be based on a

careful customer segmentation. Customer groups that differ by frequency of

use, social status, geographical region or other criteria, are likely to have

different expectations and preferences. Hence, they will probably perceive an

offering in different ways.

Zeithaml et al suggest to incorporate several behavioural-intentions questions

to identify signals that are potentially favourable or unfavourable for the

company. Questions for behaviour intentions are potentially of higher validity

47

and richer diagnostic value than the “overall service quality” or “customer

satisfaction” variables. Since these questions are directed at potential future

actions they can not only indicate of changes in demand and market trends.

They also provide early warning signs and help to take to take timely

corrective action.

Only if a company knows which features of its products and services or which other

points of contact with the customer are considered most important by the customers, it

can develop appropriate strategies. Such a strategy will not only help the company to

strengthen the emotional bond with the customer through targeted improvements and

activities. It may also have the positive side effect that the customers’ whole

experience leads him to the conclusion that this company really understands his

distinctive needs and really takes him seriously. Hence, the customers perception of

the whole company may improve beyond a positive attitude towards a particular

product.

Based on thorough research, companies can develop strategies and initiate targeted

activities to manage and improve customer perceptions. This article finishes with

some examples of how this can be done. It has to be taken into consideration,

however, that there is no one right strategy. Since these measures shall provide a

distinctive competitive advantage, they should be based on the particular

competencies and resources of a company and they should aim at setting the company

apart from the other market participants.

• The service experience is closely linked to his perception of the total company

and its offerings – be it products or service. A common idea of many authors is that it

is not always necessary to deliver the absolutely perfect customer experience. Instead

it is important to solve the customers need or problem in a matter that is perceived

appropriate. For many retail products, for example, it will be sufficient in most cases

to offer an appropriate group of substitute products, but not all particular products. In

service situations, customers will - depending on the actual nature of the service - not

expect an immediate service delivery. They will however expect a delivery within a

time frame that is either market standard or meets the service promise of the actual

48

service provider. As long as the company keeps this promise, the customer will

perceive this as satisfying. Byrnes even suggests that you earn more customer loyalty

when you do a good job fixing a service problem, than if there had been no problem at

all.[6] The point is to meet or excel the customers’ expectations, not to achieve some

ideal level of product or service delivery.

• Companies should try to make sure that their customers are fully aware of all

the ways their offering can provide value to them. They have to explain the customer

how this particular product can deliver more value than those from competitors. This

approach means to widen the customer perception and to extend their awareness and

appreciation to more features or aspects of the offering. However, this point has to be

considered very carefully in order not to produce an diametrical effect.

Example

A customer who uses a large part of the functionality of his mobile phone might be

delighted to learn about additional features and functions of the next generation

product. Here the perceived value of the new product could be increased by

highlighting the utility of the new functions. Another type of customer only uses his

mobile phone to make and receive phone calls. He would probably not appreciate this

type of communication. His equation of product value and cost will shift to the

perception that he should pay an higher price for even more features he does not need

and will not use.

This point again highlights the critical importance of market research. In this example,

market research would help the company to develop different communication

strategies that focus on those product features that are of high priority for particular

market segments.

• A commonplace strategy to circumvent the loss of exclusivity associated with

high market share is to leverage the brand by introducing new related brands. This is

very efficient with fragrances or fashion brands.

49

• In situations in which customers perceive high market shares lead as a sign of

quality, it is advisable to advertise a favourable high share, e.g. “Americas most

popular SUV”, “Three out of five people already use”.

• It is advisable to contact customers who indicate low results for loyalty or

perception of the company in the surveys. Direct contact allows to identify the roots

of the problem and – if possible – to solve the issue. Besides solving some customer-

specific problems and thus improving the perception of some individuals, such

follow-ups may reveal some causes for problems that are common to wider parts of

the customer base. These are the starting points for some improvements with

potentially significant effects.

• Follow-up is the hallmark of any loyalty or customer perception surveys. The

effects of any activities should be measured and analysed by follow-up surveys to

provide further insights.

50

1. Occupation of respondents

OPINIONNO. OF

RESPONDENTSPERCENTAGE OF

RESPONDENTS

Self Employed 14 14%

Business 14 14%

Private Sector 37 37%

Professional 24 24%

Govt. Sector 14 14%

TOTAL 100 100%

SELF EMPLOYED BUSINESS PRIVATE SECTOR PROFESSIONAL GOVT. SECTOR0

5

10

15

20

25

30

35

40

14 14

37

21

14

opinion

perc

enta

ge o

f res

pond

ents

INTERPRETATION:

From the above analysis, we can know that 37% of the respondents were from the

private sector, 21% were professionals, and 14% each from govt.sector, business and

51

self employed. It shows people working in the private sector are the major target

audience of the credit card companies.

2. Gender of respondents

OPINIONNO. OF


RESPONDENTS

Female 14 14%

Male 14 14%

37 37%

0

10

20

30

40

50

60

70

80

24

76

opinion

perc

enta

ge o

f res

pond

ents

INTERPRETATION:

The above analysis shows that more than 2/3rd of the respondents were male. The

major reason for this could be that male have regular source of income. 76 % of the

respondents were male compared to just 24% of the female respondents. This Many

of the housewives who uses the credit card are those which are been issued as free

card along with existing card.

52

3. What type of account do you have in bank?

OPINIONNO. OF


RESPONDENTS

Savings 45 45%

Current 32 32%

Fixed 10 10%

NRI 13 13%

TOTAL 100 100%

Savings Current Fixed NRI0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%45%

32%

10%13%

PERCENTAGE OF RESPONDENTS

opinion

perc

enta

ge o

f res

pond

ents

INTERPRETATION

53

From the above table, it is clear that 45% of the respondents have savings account.

32% of the respondents have current account. 10% of the respondents have fixed

deposit account. 13% of the respondents have NRI account.

4. Which of the following services are offered by HDFC Bank?

OPINIONNO. OF


RESPONDENTS

D-Mat A/C 36 36%

Mutual Funds 14 14%

e-Instructions 25 25%

LI & GI 15 15%

Digitally Signed Statement

10 10%

TOTAL 100 100%

54

D-Mat

A/C

Mutual Funds

e-Instr

uctionsLI &

GI

Digitally

Signed

State

ment

0%

5%

10%

15%

20%

25%

30%

35%

40% 36%

14%

25%

15%

10%


opinion

perc

enta

ge o

f res

pond

ents

INTERPRETATION:

From the above table, it is clear that 36% of the respondents said that D-Mat a/c is

offered by HDFC Bank. 14% of the respondents said that mutual funds offered by

HDFC Bank. 25% of the respondents said that e-instruction are offered by HDFC

Bank. 15% of the respondents said that LI and GI is offered by HDFC Bank. 10% of

the respondents said that digitally signed statement is offered by HDFC Bank

5. Which credit card do you use?

OPINIONNO. OF


RESPONDENTS

Visa 30 30%

Mastercard 38 38%

Classic 16 16%

Gold &diners 9 9%

Platinum 7 7%

55

TOTAL 100 100%

VISA MASTERCARD CLASSIC GOLD & DINERS PLATINUM0

5

10

15

20

25

30

35

40

30

38

16

97

opinion

perc

enta

ge o

f res

pond

ents

INTERPRETATION:

From the above table, it is clear that 38% of the respondents use the MasterCard. It is

followed by visa which is being used by 30% of the respondents. The two are

followed by classic, gold & diners and platinum respectively with 16%, 9% and 7%.

56

6. How would you know about Credit cards?

OPINIONNO. OF


RESPONDENTS

Advertisements 67 67%

Friends and Relatives 12 12%

Direct Selling Agents 21 21%

TOTAL 100 100%

Advertisem

ents

Frien

ds and Rela

tives

Direct S

elling A

gents

0%

10%

20%

30%

40%

50%

60%

70%

80%67%

12%

21%


opinion

perc

enta

ge o

f res

pond

ents

INTERPRETATION:

From the above table, it is clear that 67% of the respondents know about credit cards

through advertisements. 12% of the respondents know about credit cards through

friends and relatives. 21% of the respondents know about credit cards through direct

selling agents.

57

7. Since how long you have been using the credit card?

OPINIONNO. OF


RESPONDENTS

< 2 years2 2%

2 – 4 years26 26%

4- 6 years59 59%

Above 6 years 13 13%

TOTAL 100 100%

< 2 YEARS 2 - 4 YEARS 4 - 6 YEARS ABOVE 6 YEARS0

10

20

30

40

50

60

70

2

26

59

13

opinion

perc

etag

e of

res

pond

ents

INTERPRETATION:

58

From the above table, it is clear that 59% of the respondents has been using the credit

card for more than 4 years but less than 6 years. 26% of the respondents fall in the

category of 2 – 4 years, 13% percent of them have been using the card for more than 6

years. Only 2% of the respondents are such who have used credit card for less than 2

years.

8. According to you which are the convenient way to pay?

OPINIONNO. OF


RESPONDENTS

Cash 37 37%

Credit card 40 40%

Both 23 23%

TOTAL 100 100%

Cash Credit card Both 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

37%40%

23%


opinion

perc

enta

ge o

f res

pond

ents

59

INTERPRETATION:

From the above table, it is clear that 37% of the respondents agreed that cash is the

convenient way to pay. 40% of the respondents agreed that credit card is the

convenient way to pay. 23% of the respondents agreed that both the ways are

convenient to pay.

9. What prompts you to use credit card instead of using cash?

OPINIONNO. OF


RESPONDENTS

Convenience 28 28%

Free credit availability

24 24%

Cash handling not required

16 16%

Status symbol 25 25%

Emergency 7 7%

TOTAL 100 100%

60

Convenien

ce

Free c

redit a

vailab

ility

Cash han

dling n

ot require

d

Status s

ymbol

Emerg

ency

0%

5%

10%

15%

20%

25%

30% 28%

24%

16%

25%

7%


opinion

perc

enta

ge o

f res

pond

ents

INTERPRETATION:

From the above table, it is clear that 28% of the respondents agreed that they use

credit cards for convenience. 24% of the respondents agreed that they use credit cards

for free credit availability. 16% of the respondents agreed that they use credit cards

for no use of cash handling. 25% of the respondents agreed that they use credit cards

as status symbol. 7% of the respondents agreed that they use credit cards for

emergency.

10. What is your monthly income?

OPINIONNO. OF


RESPONDENTS

< 10,000 24 24%

10,000 – 15,000 45 45%

15,000 – 20,000 21 21%

Above 20,000 10 10%

TOTAL 100 100%

61

< 10,000 10,000 – 15,000

15,000 – 20,000

Above 20,000

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

24%

45%

21%

10%


opinion

perc

enta

ge o

f res

pond

ents

INTERPRETATION:

From the above table, it is clear that 24% of the respondents have monthly income of

<10,000. 45% of the respondents have monthly income of 10000-15000. 21% of the

respondents have monthly income of 15000-20000. 10% of the respondents have

monthly income of above 20000.

11. What percentage of income do you save monthly?

OPINIONNO. OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

< 10% 0 0%

10% - 20% 24 24%

62

20% - 30% 63 63%

Above 30% 13 13%

TOTAL 100 100%

< 10% 10% - 20% 20% - 30% ABOVE 30%0

10

20

30

40

50

60

70

0

24

63

13

opinion

perc

enta

ge o

f res

pond

ents

INTERPRETATION:

From the above table, it is clear that 63% of the respondents claims that they save

20% - 30% of their monthly income. 24% of them saves between 10% - 20% and

13% of them saves above 30% of their monthly income. None of them saves less than

10%.

12. What is the spending limit of your credit card?

OPINIONNO. OF


RESPONDENTS

< 5000 17 17%

5000 – 15,000 37 37%

63

15,000 – 25,000 21 21%

Above 25,000 25 25%

TOTAL 100 100%

< 5000 5000 – 15,000

15,000 – 25,000

Above 25,000

0%

5%

10%

15%

20%

25%

30%

35%

40%

17%

37%

21%

25%


opinion

perc

enta

ge o

f res

pond

ents

INTERPRETATION:

From the above table, it is clear that 17% of the respondents said that their spending

limit on credit card is <5000. 37% of the respondents said that their spending limit on

credit card is 5000-15000. 21% of the respondents said that their spending limit on

credit card is 15000-25000. 25% of the respondents said that their spending limit on

credit card is above 25000.

13. Has credit card brought any changes in your monthly spending?

OPINIONNO. OF


RESPONDENTS

Yes 76 76%64

No 24 24%

TOTAL 100 100%

Yes No0%

10%

20%

30%

40%

50%

60%

70%

80% 76%

24%PERCENTAGE OF RESPONDENTS

opinion

perc

enta

ge o

f res

pond

ents

INTERPRETATION:

From the above table, it is clear that 76% of the respondents said that credit card

brought changes in their monthly spending. 24% of the respondents said no.

14. How much satisfied you are with your existing credit card?

65

OPINIONNO. OF


RESPONDENTS

Highly satisfaction 11 11%

Satisfied36 36%

Neutral43 43%

Dissatisfied9 9%

Highly dissatisfied1 1%

TOTAL 100 100%

0

5

10

15

20

25

30

35

40

45

50

11

36

43

9

1Axis Title

perc

enta

ge o

f res

pond

ents

INTERPRETATION:

From the above table, it is clear that 43% of the respondents are neither satisfied nor

dissatisfied with the card that they are using i.e. they are neutral. 36% of the

respondents says that are satisfied with their credit card facility. Only 11% says they

66

are highly satisfied and 9% says that they are dissatisfied with the facility that they

have. 1% of the respondents are highly dissatisfied with the credit card facility.

15. Which factor influenced you most to buy credit card?

OPINIONNO. OF


RESPONDENTS

Price 12 12%

Presentation of sales man

24 24%

Insurance cover 18 18%

Cash withdrawal 38 38%

others 8 8%

TOTAL 100 100%

Price

Presen

tation of sa

les m

an

Insurance

cover

Cash with

drawal

others0%

5%

10%

15%

20%

25%

30%

35%

40%

12%

24%

18%

38%

8%


opinion

perc

enta

ge o

f res

pond

ents

INTERPRETATION:

67

From the above table, it is clear that 12% of the respondents are influenced by price.

24% of the respondents are influenced by presentation of salesman. 18% of the

respondents are influenced by insurance cover. 38% of the respondents are influenced

by cash withdrawal. 8% of the respondents are influenced by others.

16. Do you feel services provided by your credit card(s) are according to your expectations?

OPINIONNO. OF


RESPONDENTS

Yes 69 69%

No 31 31%

TOTAL 100 100%

Yes No0%

10%

20%

30%

40%

50%

60%

70%

80%

69%

31% PERCENTAGE OF RESPONDENTS

opinion

perc

enta

ge o

f re

spon

dent

s

INTERPRETATION:

68

From the above table, it is clear that 69% of the respondents felt that services

provided by credit cards are according to their expectations. 31% of the respondents

felt that services provided by credit cards are not according to their expectations.

17. Do you think interest rate charged by the credit card companies is reasonable?

OPINIONNO. OF


RESPONDENTS

Yes 82 82%

No 18 18%

TOTAL 100 100%

Yes No0%

10%

20%

30%

40%

50%

60%

70%

80%

90%82%

18%


opinion

perc

esnt

age

of re

spon

dent

s

INTERPRETATION:69

From the above table, it is clear that 82% of the respondents felt that interest rate

charged by the credit card companies is reasonable. 18% of the respondents felt that it

is not reasonable.

18. Do you feel taking credit card was a good decision?

OPINIONNO. OF


RESPONDENTS

Yes 62 62%

No 8 8%

Can’t say 30 30%

TOTAL 100 100%

70

Yes No Can’t say0%

10%

20%

30%

40%

50%

60%

70%62%

8%

30%PERCENTAGE OF RESPONDENTS

opinion

perc

enta

ge o

f res

pond

ents

INTERPRETATION:

From the above table, it is clear that 62% of the respondents felt that taking credit

card is a good decision. 8% of the respondents felt as it is not a good decision. 30% of

the respondents can’t say about the topic.

19. Would you like to switch over to another company’s credit card?

OPINIONNO. OF


RESPONDENTS

Yes 37 37%

No 63 63%

TOTAL 100 100%

71

Yes No0%

10%

20%

30%

40%

50%

60%

70%

37%

63%


opinion

perc

enta

ge o

f res

pond

ents

INTERPRETATION:

From the above table, it is clear that 37% of the respondents said that they like to

switch over to another company’s credit card. 63% of the respondents said that they

don’t switch over to another company’s credit card.

20. What are the major purposes for which you use credit card?

OPINIONNO. OF


RESPONDENTS

Shopping 32 32%

Hotels 15 15%

72

Health 10 10%

Petrol Pump 32 32%

Travel and others 11 11%

TOTAL 100 100%

Shopping Hotels Health Petrol Pump Travel and others

0%

5%

10%

15%

20%

25%

30%

35%32%

15%

10%

32%

11% PERCENTAGE OF RESPONDENTS

opinion

INTERPRETATION:

From the above table, it is clear that 32% of the card usage is at petrol pumps and for

shopping. For hotels and restaurants bill payments the card usage is 15%, for

travelling and others its 11% and for health related payments card usage is merely

10%.

21. Where do you see the future of credit card?

OPINION NO. OF PERCENTAGE OF

73

RESPONDENTS RESPONDENTS

Rapid growth 23 23%

Steady growth 10 10%

Stagnant 29 29%

Declining 15 15%

Can’t predict 23 23%

TOTAL 100 100%

Rapid growth

Steady growth

Stagnant Declining Can’t predict

0%

5%

10%

15%

20%

25%

30%

35%

23%

10%

29%

15%

23%


Axis Title

perc

enta

ge o

f res

pond

ents

INTERPRETATION:

From the above table, it is clear that 23% of the respondents said that in future there

will be a rapid growth for credit cards. 10% of the respondents said that in future there

will be a steady growth for credit cards. 29% of the respondents said that the growth

for credit cards will be stagnant. 15% of the respondents said that the growth for

credit cards will be declining. 15% of the respondents said that they can’t predict

about the growth of credit cards.

74

FINDINGS

1. 45% of the respondents have savings account.

2. 36% of the respondents said that D-Mat a/c is offered by HDFC Bank.

3. 38% of the respondents use the MasterCard.

4. 67% of the respondents know about credit cards through advertisements.

5. 59% of the respondents has been using the credit card for more than 4 years

but less than 6 years.

6. 40% of the respondents agreed that credit card is the convenient way to pay.

7. 28% of the respondents agreed that they use credit cards for convenience.

8. 45% of the respondents have monthly income of 10000-15000.

9. 63% of the respondents claims that they save 20% - 30% of their monthly

income.

10. 76% of the respondents said that credit card brought changes in their monthly

spending.

11. 43% of the respondents are neither satisfied nor dissatisfied with the card that

they are using i.e. they are neutral.

12. 38% of the respondents are influenced by cash withdrawal.

13. 82% of the respondents felt that interest rate charged by the credit card

companies is reasonable.

75

CONCLUSIONS

1. Majority of the respondents are male working in private sector.

2. Customers know about the credit cards maximum through advertisements.

3. Customers feel that credit card is the convenient way to pay.

4. Customers are satisfied with their existing credit cards.

5. Customers are influenced by cash withdrawal facility of credit cards.

6. Services provided by credit card(s) are according to the customers’

expectations.

7. Respondents with higher salary utilize the cards to the maximum whereas

those with lower salary are more cautious.

8. Lower the savings, higher is the requirement for the use of cards. Purchases

can be made through cards and can be paid from next month’s salary because

the limit is 45 days for settling the dues.

9. Credit cardholders with higher income feel that credit cards have changed

their consumption pattern. The credit card purchase is not always a rational

buy; some part of it is also impulse buying.

76

SUGGESTIONS

With the multiplying volumes and the contest for efficiency, marketers vie with

each other out to the existing and potential card holders. A shakeout is inevitable

in this field of marketing. The card issuers face many difficulties and the credit

card service market also suffers from certain bottle necks which can be outlined

below.

1. The banks must reduce the service charge which is to be paid by the card

holders for ticket booking, petrol fills and certain establishments that

charge 2 to 3% on the total price.

2. Women should be induced to use credit cards by creating awareness on the

benefits derived from them. New schemes should be introduced to cater to

their specific needs.

3. The methods should be adopted to bring degree of popularization through

mass media channels like Television, Radio, Airports Centres, Star Hotels,

Railway Centres, and Super Markets etc.

4. Customer education is needed for increased awareness, facility derived and

ways to make the best use of the card.

5. The credit card holder should sincerely and honestly repay the balances in

time and facilitate the system to work out smoothly.

6. The credit cardholders should plan their economic affairs i.e. they should

not buy unnecessary or unwanted things simply because they have credits

which does not require immediate payment. They should always think

about the future commitments and arrange funds for in time.

7. The Admission fees and renewal fees should be reduced so that it can

attract more customers.

8. The interest charged by the credit card agencies is much higher than the

normal lending rates by the bankers and it should be reduced.

77

QUESTIONNAIRE

1. Occupation of respondents

Self Employed Business Private Sector Professional Govt. Sector

2. Gender of respondents

Female Male

3. What type of account do you have in bank?

Savings Current Fixed NRI

4. Which of the following services are offered by HDFC Bank?

D-Mat A/C Mutual Funds e-Instructions LI & GI Digitally Signed Statement

5. Which credit card do you use?

Visa Mastercard Classic Gold &diners Platinum

6. How would you know about Credit cards?

Advertisements Friends and Relatives Direct Selling Agents

7. Since how long you have been using the credit card?78

< 2 years 2 – 4 years 4- 6 years Above 6 years

8. According to you which are the convenient way to pay?

Cash Credit card Both

9. What prompts you to use credit card instead of using cash?

Convenience Free credit availability Cash handling not required Status symbol Emergency

10. What is your monthly income?

< 10,000 10,000 – 15,000 15,000 – 20,000 Above 20,000

11. What percentage of income do you save monthly?

< 10%

10% - 20%

20% - 30%

Above 30%

12. What is the spending limit of your credit card?

< 5000 5000 – 15,000 15,000 – 25,000 Above 25,000

13. Has credit card brought any changes in your monthly spending?

Yes No

14. How much satisfied you are with your existing credit card?

Highly satisfaction Satisfied Neutral Dissatisfied Highly dissatisfied

15. Which factor influenced you most to buy credit card?

Price

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Presentation of sales man Insurance cover Cash withdrawal others

16. Do you feel services provided by your credit card(s) are according to your expectations? Yes No

17. Do you think interest rate charged by the credit card companies is reasonable? Yes No

18. Do you feel taking credit card was a good decision? Yes No Can’t say

19. Would you like to switch over to another company’s credit card? Yes No

20. What are the major purposes for which you use credit card?

Shopping Hotels Health Petrol Pump Travel and others

21. Where do you see the future of credit card?

Rapid growth Steady growth Stagnant Declining Can’t predict

BIBLIOGRAPHY

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BOOKS

1. Marketing Management T. N. Chhabra

2. Marketing Research D.D.Sharma

3. Marketing Management Philip Kotler

4. Marketing Management - S.A. Sherlekar

WEBSITES

1. www.financialexpress.com

2. www.google.com

3. www.icicibank.com

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http://www.google.com/

http://www.financialexpress.com/

Credit Cards

Documents

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icicis modern

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brand hammering