CHAPTER 1 INTRODUCTION AND RESEARCH METHODOLOGY INTRODUCTION: In modern economics, service sector plays significant role side by side manufacturing and other sectors. Banking sector performs its activities economically and socially in a country. Service managers of such service factory are more concerned about their quality of service and client satisfaction (Olorunniwo et al., 2006). Banking services include mobile banking, SME banking, internet banking, SMS banking, credit card, ATM services, foreign currency account, locker service, and loan and advances (term loan, car loan, education loan, housing loan, micro group credit, 1
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CHAPTER 1
INTRODUCTION
AND
RESEARCH METHODOLOGY
INTRODUCTION:
In modern economics, service sector plays significant role side by side manufacturing and other
sectors. Banking sector performs its activities economically and socially in a country. Service
managers of such service factory are more concerned about their quality of service and client
satisfaction (Olorunniwo et al., 2006). Banking services include mobile banking, SME banking,
field service costs, customer defection, and customer turnover, it seems logical to expect that
these effects will eventually affect stock prices and company valuations (Fornell et al., 20006).
Companies and firms have recognized that through exceeding customer expectations is a worthy
goal, exceeding those expectations profitability is necessary for long-term corporate viability. In
order to understand corporate profitability, there is also a need to understand what drives
shareholder value in organizations. In the current rends, companies are focusing on the
relationships between customer satisfaction, customer satisfaction and corporate profitability
(Epstein and Jones, 2000). A strong relationship and tie should be established and maintained in
the process of achieving high customer satisfaction. Each single conflict within an organization
can have far-reaching consequences in long-term customer satisfaction, and that the human
element- the way an customer interacts with a customer – plays the dominant role. The
mentioned factors and practices strongly support that service recovery skills and procedures are
critical in maintaining customer satisfaction (Belding, 2004).
The challenge therefore for companies is to provide customers to have smart, appropriate
interactions regardless of which channels they use. The focus of bottom line growth will never
relent. Firms also need to secure loyalty and increase the profitability of those clients aside from
retaining their customers (Winters, 2008). Recent researches have confirmed that customer
satisfaction and customer loyalty are related to key measures of financial performance, including
but not limited to retention. Companies with loyal clients or customers tend to register higher
customer satisfaction, increased sales, lower costs, and more predictable profit streams
(Grossman, 1998).
Advantages of Customer Satisfaction Surveys
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Up-to-date feedback: Gather current customer feedback on various aspects of your company.
You can stay on top of customer trends through regularly scheduled online surveys or email
surveys, and receive instant customer feedback. It is always useful to acquire insight into how
your customers are currently reacting to all aspects of your business.
Benchmark results: You can administer the same survey every so often to customers to gain
continued insight into your customers. Surveys can have the same questions, which will allow
you to compare data over time and benchmark survey data across previous years to determine
if any changes need to be made.
Show that you care: Customers like to be asked for their feedback. It gives the customer the
perception that your company values them; is committed to keeping them as a long-term
customer; and bases business decisions on their feedback.
Disadvantages of Customer Satisfaction Surveys
Too many surveys, so little time: Your customers are bombarded with online surveys.
Surveys may be simple to complete, however, some people simply don’t like to complete
them. Sending surveys too often can irritate customers and lead to customer burnout.
Customer burnout can result in low response rates or result in lower satisfaction scores,
despite your reputation for providing excellent products or services.
Privacy Issues: We live in a high-tech environment filled with daily doses of unwanted junk
email, email solicitations, and sales calls. When taking an online survey or a phone survey (or
any type of survey), it is hard for your customers to believe that they aren’t being tracked.
Because of insecurities of releasing private information, customers today are hesitant in giving
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out information that may lead to more junk email and unwanted calls. Make certain to assure
customers that the information they provide in response to your customer satisfaction surveys
will not be used. Without this disclaimer, it may be difficult to receive a good response rate.
Customer Service Factors
Convenience
Measures accessibility and quality of service from delivery channels
Convenience Customer Care
Measures interaction of bank staff with customers
Transactions, Methods & Systems
Measures customer support processes/ systems & turnaround time
Products & Services
Measures product range and appropriateness to customers’ needs
Pricing
Measures customers’ perception on fees, charges and rates on products
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CHAPTER- 4
DATA ANALYSIS & INTERPRETATION
EXPLANATION OF THE STDY:
The data was collected duly with the help of structured questionnaire. The collected data were
classified as under: -
Name
Age
Income
Qualification
Designation
For analysis of data, the statistical methods like Mean, Standard Deviation were adopted. For
testing of Null Hypothesis and Alternate Hypothesis Chi-Square test were adopted.
For evaluating the responses of customers, questions were awarded with scores four, three, two
and one.
The answers are rated as per following table-
strongly agree completely satisfied 4
agree satisfied 3
disagree Somewhat satisfied 2
Strongly agree unsatisfied 1
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For each coustomer score for each question was obtained using the formula given below: -
Score of each question= Points scored in each question
----------------------------------------------------- X 100
Maximum Score
Calculation of mean is calculated by following formula:-
Mean ∑ = total score
-----------------------
total
Calculation of std deviation is calculated by following formula:-
Std deviation = √∑ ( x- x— ) ²
-----------------
n
The answers of customers to arrive at Low, Medium, High level of satisfaction of customers
following statistical approach was effected.
To decide the level of satisfaction, method of points of inflexion is used.
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Arithmetic Mean (AM) and Standard Deviation (SD) is calculated for deciding the level of
satisfaction of customers.
Low level of satisfaction: below (AM-SD)
Medium level of satisfaction: From (AM-SD) to (AM+SD)
High level of satisfaction: Above (AM+SD)
Calculation of low level = (AM-SD)
Calulation of high level = ( AM+SD)
Introduction:
This section in the context of the banking industry will give us an insight into the parameters of customer satisfaction and their measurement.
The data has been collected mainly with the help of questionnaires. The data was collected with the help of 16 questions covering population of 15 customers.
The questions were classified into two groups:
a) Generalb) Specific
General information was collected under following heads:
1. Gender2. Age3. Department 4. Designation5. Qualification
Specific information was collected on aspects relating to training &development, performance appraisal, salary, rewards, recognition stress reduction etc.
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Descriptive Analysis:
There are are 2 types of hypothesis
1. Null hypothesis is indicated by (H0)- there is no association between gender and level of
satisfaction
2. Alternative hypothesis is indicated by (H1)- there is association between gender and level
of satisfaction
Testing of Null Hypotheses
The different Null Hypotheses were tested with the help of statistical tool. For this purpose Chi-
Square test is conducted
Testing by chi-square test
If p value is less than 0.5 then the chi-square test is rejected
If p value is greater than 0.5 then the chi-square test is accepted
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GROUP 1
CUSTOMER SATISFACTION towards services offered by BANK
Null Hypothesis (Ho):- There is no association between customer’s level of satisfaction
towards services offered and gender of the respondents.
Alternative Hypothesis:- There is association between customer’s level of satisfaction
towards services offered and gender of the respondents.
MEAN= 60.83
STD DEVIATION= 14.65
HIGH LEVEL= 75.48
LOW LEVEL= 46.18
ACTUAL FREQUENCY-
Count of TOTAL SCORE Column LabelsRow Labels HIGH LOW MEDIUM Grand TotalF 1 2 4 7M 1 1 6 8Grand Total 2 3 10 15
EXPECTED FREQUENCY-.
Count of TOTAL SCORE Column LabelsRow Labels HIGH LOW MEDIUM Grand TotalF 0.94 1.4 4.67 7M 1.07 1.6 5.34 8Grand Total 2 3 10 15
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FINDINGS-
Above table indicates that out of total 15 customers 2 customer is highly satisfied, 10
customers are medium satisfied and 3 customers are low satisfied.
The above information is presented using Bar diagram as given below
BAR DIAGRAM –
F
M
0 1 2 3 4 5 6 7 8 9
HIGHLOWMEDIUM
To test the above hypothesis Chi- Square test is applied and the result of the test is
P-VALUE = 0.72
Since p-value is 0.72 which is greater than standard p value 0.05 therefore chi-square test is
accepted and thus null hypothesis are accepted.
Conclusion:
There is no association between customer’s level of satisfaction regarding performance appraisal
and gender of the respondent.
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GROUP 2
CUSTOMER SATISFACTION WITH BRANCH OPERATION
Null Hypothesis (Ho):- There is no association between customer’s level of satisfaction
towards BRANCH OPERATION and gender of the respondents.
Alternative Hypothesis:- There is association between customer’s level of satisfaction
towards BRANCH OPERATION and gender of the respondents.
MEAN= 72.78
STD DEVIATION= 10.19
HIGH LEVEL= 82.97
LOW LEVEL= 62.59
ACTUAL FREQUENCY-
Count of TOTAL SCORE Column LabelsRow Labels HIGH LOW MEDIUM Grand TotalF 1 6 7M 2 1 5 8Grand Total 3 1 11 15
EXPECTED FREQUENCY-
Count of TOTAL SCORE Column LabelsRow Labels HIGH LOW MEDIUM Grand TotalF 1.4 0.47 5.14 7M 1.6 0.54 5.87 8Grand Total 3 1 11 15
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FINDINGS-
Above table indicates that out of total 15 customers 3 customer is highly satisfied, 11
customers are medium satisfied and 1 customers are low satisfied.
The above information is presented using Bar diagram as given below
BAR DIAGRAM –
F
M
0 1 2 3 4 5 6 7 8
HIGHLOWMEDIUM
To test the above hypothesis Chi- Square test is applied and the result of the test is
P-VALUE = 0.64
Since p-value is 0.64 which is greater than standard p value 0.05 therefore chi-square test is
accepted and thus null hypothesis are accepted.
Conclusion:
There is no association between customer’s level of satisfaction regarding pay and promotion
potential and gender of the respondent.
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GROUP 3
CUSTOMER SATISFACTION ATM SERVICES
Null Hypothesis (Ho):- There is no association between customer’s level of satisfaction
towards ATM SERVICES and gender of the respondents.
Alternative Hypothesis:- There is association between customer’s level of satisfaction
towards ATM SERVICES and gender of the respondents.
MEAN= 62.22
STD DEVIATION= 11.73
HIGH LEVEL= 73.95
LOW LEVEL= 50.49
ACTUAL FREQUENCY-
Count of TOTAL SCORE Column LabelsRow Labels HIGH LOW MEDIUM Grand TotalF 3 1 3 7M 2 4 2 8Grand Total 5 5 5 15
EXPECTED FREQUENCY-
Count of TOTAL SCORE Column LabelsRow Labels HIGH LOW MEDIUM Grand TotalF 2.34 2.34 2.34 7M 2.67 2.67 2.67 8Grand Total 5 5 5 15
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FINDINGS-
Above table indicates that out of total 15 customers all are equally satisfied.
The above information is presented using Bar diagram as given below
BAR DIAGRAM –
F M0
0.5
1
1.5
2
2.5
3
3.5
4
HIGHLOWMEDIUM
To test the above hypothesis Chi- Square test is applied and the result of the test is
P-VALUE = 0.34
Since p-value is 0.34 which is greater than standard p value 0.05 therefore chi-square test is
accepted and thus null hypothesis are accepted.
Conclusion:
There is no association between customer’s level of satisfaction regarding work relationship and
gender of the respondent.
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GROUP 4
CUSTOMER SATISFACTION MOBILE & SMS BANKING
Null Hypothesis (Ho):- There is no association between customer’s level of satisfaction
towards PERSONAL SERVICES and gender of the respondents.
Alternative Hypothesis:- There is association between customer’s level of satisfaction
towards MOBILE & SMS BANKING and gender of the respondents.
MEAN= 65.00
STD DEVIATION= 17.02
HIGH LEVEL= 82.02
LOW LEVEL= 47.98
ACTUAL FREQUENCY-
Count of TOTAL SCORE Column LabelsRow Labels HIGH LOW MEDIUM Grand TotalF 2 5 7M 3 5 8Grand Total 3 2 10 15
EXPECTED FREQUENCY-
Count of TOTAL SCORE Column LabelsRow Labels HIGH LOW MEDIUM Grand TotalF 1.4 0.94 4.67 7M 1.6 1.07 5.34 8Grand Total 3 2 10 15
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FINDINGS-
Above table indicates that out of total 15 customers 3 customer is highly satisfied, 10
customers are medium satisfied and 2 customers are low satisfied.
The above information is presented using Bar diagram as given below
F
M
0 1 2 3 4 5 6 7 8
HIGHLOWMEDIUM
To test the above hypothesis Chi- Square test is applied and the result of the test is
P-VALUE = 0.29
Since p-value is 0.29 which is greater than standard p value 0.05 therefore chi-square test is
accepted and thus null hypothesis are accepted.
Conclusion:
There is no association between customer’s level of satisfaction regarding rewards and
recognition and gender of the respondent.
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GROUP 5
CUSTOMER SATISFACTION TOWARDS ONLINE BANKING
Null Hypothesis (Ho):- There is no association between customer’s level of satisfaction
towards online banking and gender of the respondents.
Alternative Hypothesis:- There is association between customer’s level of satisfaction
towards online banking and gender of the respondents.
MEAN= 62.78
STD DEVIATION= 17.78
HIGH LEVEL= 80.56
LOW LEVEL= 45
ACTUAL FREQUENCY-
Count of TOTAL SCORE Column LabelsRow Labels HIGH LOW MEDIUM Grand TotalF 1 1 5 7M 3 2 3 8Grand Total 4 3 8 15
EXPECTED FREQUENCY-
Count of TOTAL SCORE Column LabelsRow Labels HIGH LOW MEDIUM Grand TotalF 1.87 1.4 3.74 7M 2.14 1.6 4.27 8Grand Total 4 3 8 15
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FINDINGS-
Above table indicates that out of total 15 customers 4 customer is highly satisfied, 8 customers
are medium satisfied and 3 customers are low satisfied.
The above information is presented using Bar diagram as given below
F
M
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5
MEDIUMLOWHIGH
To test the above hypothesis Chi- Square test is applied and the result of the test is
P-VALUE = 0.41
Since p-value is 0.41 which is greater than standard p value 0.05 therefore chi-square test is
accepted and thus null hypothesis are accepted.
Conclusion:
There is no association between customer’s level of satisfaction regarding work environment
and gender of the respondent.
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CHAPTER 5
SUGGESTIONS AND FINDINGS
Suggestions:-
1. Majority of the people are aware about the online banking but many of them do not prefer
online banking due to lack of trust they have in online services. Hence the bankers
should give them assurance that their online banking confident among customers and the
online services will be used majority of the customers which will save the time and
energy of both the customer and the customer of bank and even the work can be carried
out more effectively through online.
2. The researcher does not use online survey due to lack of trust and confidence in the
answer of the respondents because there is a chance of fake answers. Even for the
secondary data, the researcher prefers newspaper, magazines rather than online as there is
chance of wrong information on the internet. Hence the wrong information on the website
should not be accepted and there should be updated information on the internet.
3. The online service lacks in satisfying the customers as the work is completely carried
online and there is no trust among customers for online. Hence the customer should be
made aware that the online service is advantage for them and they are more benefited by
this and the information on the online is protected and secured by them and hence there is
no chance for leakage or issue of their personal information.
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Findings:-
1. Most of the People are aware about online services provided by bank but in most
business sector such as firms, hotels, institutes, tourist’s buses, and for research more
than half of them are unaware about online services provided by them.
2. More than half of the people are aware about online banking but only few of the people
use the online banking. Others prefer visiting the bank and do the work.
3. Almost every firm and institution are having their own website so that they can provide
better service to their customers but very few people know their website and hence they
are unable to receive the online services provided by them.
4. The use of online service for airway ticket reservation and for share trading has been
accepted by majority of people as they prefer online usage rather than personal meeting.
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CHAPTER 6
ANNEXURE
QUESTIONNAIRE
“A STUDY of CUSTOMER SATISFACTION “
(With reference to Dombivli Nagari Sahakari Bank )
A) General Information:
Name (optional):--------------------------------------------------------------------------------------
Gender : - Male\Female Age : - 18 to 21 years 22 to 45 years
45 to 60 years above 60 Years
Occupation : - Service ProfessionalBusiness Other
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Qualification : - Less than S.S.C S.S.CH.S.C Graduate
Post Graduate ProfessionalFrequency of transaction : - Daily Once in a Week