1 REPORT ON CONSUMER PREFERENCE ON CREDIT CARDS SERVICE PROVIDER ICICI
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 1/32
1
REPORT ON CONSUMER
PREFERENCE ON CREDITCARDS SERVICE
PROVIDER
ICICI
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 2/32
2
Under the guidance of
MR. DEVANG DESAI
G.I.D.C ROFEL BUSINESS
SCHOOL, VAPI
SUBMITED TO:- SUBMITED BY:-
MR. DEWANG DESAI RAJEEV JHA
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 3/32
3
CERTIFICATEThis is to certify that RAJEEV KUMAR JHA have satisfactorily
completed the project work entitled, Report on consumer preference on
credit cards services in India.
Based on the declaration made by the candidate and my association as a
guide for carrying out this work, we recommend this project report as a
part of the PGDM program.
Place: VAPI
Date: 10-APRIL-20102
____________________
____________________
Mr. Devang Desai Dr. KEDAR SUKLA
(Faculty) (Director)
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 4/32
4
TABLE OF CONTENTS:
Sr No. PARTICULARS PAGE No.
1. EXECUTIVE SUMMARY 5
2. ACKNOWLEDGEMENT 6
3. OBJECTIVES OF THE STUDY 7
4. INTRODUCTION OF CREDIT
CARDS
8-10
5. INTRODUCTION OF BANKS 11-13RESEARCH METHODOLOGY 14-15
6. DATA ANALYSIS &
INTERPRETATION
16-31
7. CONCLUSION 32
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 5/32
5
EXECUTIVE SUMMARY
We are in the era of purchasing through credit cards. 'Payment Cards in India' is a
guide to one of Asia's key growth payment card markets. The report provides
statistics on market size, competitor market shares and forecasts. It also provides
an overview of regulations, competitor activities, issuer strategy, product
innovation, consumer segmentation and includes developments in contactless,
mobile, and online payments as well as prepaid cards.
In this report we have tried to analyze the present scenario of Indian credit cards
sector the real aim of the project is to study on the consumer preferences oncredit card service provider , but many sub objectives are also included under
this project so as to make it comprehensive one. We complement this with the
internal study of the companies – business areas to analyze how well poised the
banks are to complete or rather just exist in this market that is proving itself to be
the most competitive in post liberalization Indian economy.
Primary data was collected through the customer survey questionnaire with a
sample size of 100 respondents. This survey was conducted in VAPI, GUJARAT.
Data thus collected analyzed and reported.
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 6/32
6
ACKNOWLEDGEMENT
We sincerely thankful to all those people who have been giving me any
kind of assistance in the making of this project report.
We express our gratitude to Mr. Devang Desai, who has through his
vast experience and generous support, constant direction and mentoring
at all stages of project and able to guide us.
We express our gratitude to GRBS ROFEL BUSINESS SCHOOL,
VAPI, and GUJARAT. We would hereby, make most of the
opportunity by expressing my sincerest thanks to all our faculties whose
teachings gave us conceptual understanding and clarity of
comprehension, which ultimately made our job easy. Their continuous
support has given us the strength and confidence to complete the project
without any difficulty.
Last of all but not the least we would like to acknowledge my gratitude
to the respondents without whom this survey would have been
incomplete.
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 7/32
7
RESEARCH OBJECTIVES
THE MAIN OBJECTIVES OF OUR RESEARCH
ARE AS FOLLOWS:
1. to know the perception of people towards credit cards
2. to find out the market leader among the various banks/
companies issuing credit cards
3. to study the satisfaction level of consumers towards credit
cards
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 8/32
8
What is credit card?
A card issued by a financial company giving the holder an option toborrow funds, usually at point of sale. Credit cards charge interest and
are primarily used for short-term financing. Interest usually begins one
month after a purchase is made and borrowing limits are pre-set
according to the individual's credit rating.
A credit card is a small plastic card issued to users as a system
of payment. It allows its holder to buy goods and services based on theholder's promise to pay for these goods and services. The issuer of the
card creates a revolving account and grants a line of credit to
the consumer (or the user) from which the user can borrow money for
payment to a merchant or as a cash advance to the user.
HISTORY OF CREDIT CARDS –
The concept of credit dates back to the late nineteenth century. This is
when symbols of credit started being used by merchants while sellinggoods without the buyer having the necessary cash in hand. In fact,
American lawyer and author Edward Bellamy referred to a 'credit card'
in his bestselling novel Looking Backward, which was published in
1888.
According to Encyclopedia Britannica, credit cards began being used in
the US during the 1920s, with oil companies, hotel chains and other
individual firms issuing these cards to their customers. In the late 1930s,companies that issued credit cards began accepting cards issued by other
firms as payment.
The 'Charge-It' card from Flatbush National Bank of New York was the
first bank card to be issued in 1946, but it could only be used locally.
American Express issued the first national charge card in 1958.
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 9/32
9
Today, credit cards can be used globally, can involve a number of third
parties, can be used for a wide number of purchases and do not require
the cardholder to maintain an account with the issuing entity.
Types of credit card:
Premium Credit Cards
Cash Back Credit Cards
Gold Credit Cards
Airline Credit Cards
Silver Credit Cards
Business Credit Cards
Balance Transfer Credit Cards
Co-branded Credit Cards
Low Interest Credit Cards
Lifetime Free Credit Cards
Rewards
The Rewards credit cards may be subdivided into Points, Hotels/Travels,
Retail, Auto and Fuels cards.
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 10/32
10
Major Credit Card Providers in India
Here are the top major credit card providers in India:
HDFC American Express
ICICI Bank
Axis Bank
SBI
Bank of Baroda
Canara Bank
Citibank
Visa
HSBC MasterCard
Deutsche Bank
Amex
Barclays Bank
Diners Club
Standard Chartered
Kotak Mahindra
CREDIT CARDS PROVIDERS IN VAPI (GUJRAT):-
HDFC
ICICI Bank
Axis Bank
SBI Bank of Baroda
Canara Bank
IDBI
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 11/32
11
HDFC bank
The Housing Development Finance Corporation Limited (HDFC) was amongst the
first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to
set up a bank in the private sector, as part of the RBI's liberalisation of the Indian
Banking Industry in 1994. The bank was incorporated in August 1994 in the name
of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995.
ICICI bank
Ms. Chanda Kochhar is the Managing Director and Chief Executive Officer of
ICICI Bank Limited. She began her career with ICICI as a Management Trainee in
1984 and has thereon successfully risen through the ranks by handling
multidimensional assignments and heading all the major functions in the Bank at
various points in time.
In 1993 when ICICI decided to enter commercial banking, she was deputed to
ICICI Bank as a part of the core team to set up the bank. When ICICI set up the
Infrastructure Industry Group in 1996 to create dedicated industry expertise in the
areas of Power, Telecom and Transportation sector, she was handpicked and made
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 12/32
12
incharge of the Infrastructure Industry Group.
In July 2000, she was chosen to head the Retail Finance division of ICICI and has
been instrumental in scaling up the business. In April 2001, she was promoted as
an Executive Director, heading the retail business in the Bank. In April 2006, shewas appointed as the Deputy Managing Director with responsibility for both
Corporate and Retail banking business of ICICI Bank and from October 2006 to
October 2007 she handled the International and Corporate businesses of ICICI. In
October 2007, she was appointed as the Joint Managing Director & CFO. She was
heading the Corporate Centre, was the Chief Financial Officer (CFO) and was also
the official spokesperson for ICICI Bank.
AXIS bank
Axis Bank Limited is an India-based bank. The Bank operates in four segments:
treasury operation, which includes investments in sovereign and corporate debt,equity and mutual funds, trading operations, derivative trading and foreign
exchange operations on the account, and for customers and central funding; retail
banking, which includes lending to individuals/small businesses subject to the
orientation, product and granularity criterion, and also includes liability products,
card services, Internet banking, automated teller machines (ATM) services,
depository, financial advisory services, and nonresident Indian services (NRI);
corporate/wholesale banking, which includes corporate relationships not included
under retail banking, corporate advisory services, placements and syndication,management of publics issue, project appraisals, capital market related services,
and cash management services, and other banking business, which includes para
banking activities.
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 13/32
13
STATE BANK OF INDIA
State Bank of India is an India-based bank. In
addition to banking, the Company, through its subsidiaries, provides a range of
financial services, which include life insurance, merchant banking, mutual funds,
credit card, factoring, security trading, pension fund management and primary
dealership in the money market. It operates in four business segments: the treasury
segment includes the entire investment portfolio and trading in foreign exchange
contracts and derivative contracts; the corporate / wholesale banking segment
comprises the lending activities of corporate accounts group, mid corporate
accounts group and stressed assets management group; the retail banking segment
comprises of branches in National Banking Group, which primarily includes
personal banking activities, and other banking business. As of March 31, 2011, the
Bank had a network of 18,266 branches including 4,724 branches of its five
Associate Banks.
IDBI bank
IDBI Bank Limited (the Bank) is an India-based commercial bank. The
Bank operates in four segments: wholesale banking, retail banking, treasury
services and other banking operations, including operations of joint venture
and subsidiaries. The Bank’s products include deposits, loans, net banking,
online tax payment, real-time gross settlement / fund transfer, phone banking,mobile banking, debit cards, small and medium enterprises finance and
agriculture finance. The services include appraisal, debt syndication, advisory
services, environmental services and securitisation and structured product
services. As on March 31, 2011, the Bank had a network of 816 branches and
1372 automated teller machine (ATMs).
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 14/32
14
RESEARCH METHODOLOGY
We as team have used descriptive type of research methodology to find
out customer preferences on cellular services provider. Basically to
know whose services are best& interesting .
Descriptive Research: Descriptive research, also known as statistical
research, describes data and characteristics about the population or
phenomenon being studied. Descriptive research answers the
questions who, what, where, when and how.
Although the data description is factual, accurate and systematic, the
research cannot describe what caused a situation. Thus, descriptive
research cannot be used to create a causal relationship, where one
variable affects another. In other words, descriptive research can be
said to have a low requirement for internal validity.
The description is used for frequencies, averages and other statistical
calculations. Often the best approach, prior to writing descriptive
research, is to conduct a survey investigation. Qualitative researchoften has the aim of description and researchers may follow-up with
examinations of why the observations exist and what the implications
of the findings are. We are using Descriptive Research design to find
out the customer preferences on cellular services provider Primary
Data Collection: In primary data collection, you collect the data yourself
using methods such as interviews and questionnaires. The key point
here is that the data you collect is unique to you and your research and,
until you publish, no one else has access to it. The primary data, which
is generated by the above methods, may be qualitative in nature
(usually in the form of words) or quantitative (usually in the form of
numbers or where you can make counts of words used). We briefly
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 15/32
15
outline these methods but you should also read around the various
methods.
There are many methods of collecting primary data and the main
methods include:
Questionnaires
Interviews
Focus group interviews
Observation
Case-studies
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 16/32
16
DATA ANALYSIS:-
1. Name the bank of credit card which you are using?
HDFC ICICI SBI AXIS IDBI ANYOTHER
30 20 15 15 10 10
INTERPRETATION- It is found that majority of the people uses HDFC as their
service provider. ICICI obtained second, AXIS and SBI have obtained third
ratings as per the consumer survey.
30%
20%15%
15%
10%
10%
SERVICES
HDFC ICICI SBI AXIS IDBI ANY OTHER
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 17/32
17
2. How long have you been using the credit card?
<1 1-2 2-3 >3
20 25 25 30
INTERPRETATION: It is noticed that majority of the customer using services from
more than three years that is 30%.
LESS THAN ONE
YEAR
20%
1-2 YEARS
25%
2-3 YEARS
25%
MORE THAN
THREE YEARS
30%
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 18/32
18
3. How did you come to know about this bank credit card?
Self mode Bankers
approach
Relatives Advertisement
10 40 20 30
INTERPRETATION: It is noticed that majority of the customer come to know
about this bank credit card for bankers approach that is 40%, and
advertisements.
SELF MODE
10%
BANKERS
APPROACH
40%
RELATIVES
20%
ADVERTISMENTS
30%
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 19/32
19
4. Do you want to be a credit card holder for life long?
INTERPRETATION: It is noticed that majority of the customer wants to be a
credit card holder for life long.
65%
35%
Chart Title
YES NO
YES NO
65 35
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 20/32
20
5. The usage of credit card is more important.
STRONGLY
DISAGREE
DISAGREE AGREE STRONGLY
AGREE
3 7 40 50
INTERPRETATION: It is noticed that majority of the customer strongly agrees for
credit cards are most important.
3% 7%
40%
50%
Strongly disagree disagree agree strongly agree
Series1
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 21/32
21
6. Does your bank offers the credit holders an existing range of prizes, special
discounts and privileges?
STRONGLY
DISAGREE
DISAGREE AGREE STRONGLY
AGREE
15 25 35 25
INTERPRETATION: It is noticed that majority of the customer agrees for bank
offers the credit holders an existing range of prizes, special discounts and
privileges.
15%
25%
35%
25%
strongly diagree disagree agree strongly agree
Series1
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 22/32
22
7. Does your bank gives the proper records of the credit card, credit rate
calculations that are made?
STRONGLY
DISAGREE
DISAGREE AGREE STRONGLY
AGREE
0 3 47 50
INTERPRETATION: It is noticed that majority of the customer strongly agrees for
bank gives the proper records of the credit card, credit rate calculations that are
made.
0%3%
47%50%
strongly disagree disagree agree strongly agree
Series1
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 23/32
23
8. How would you rate your bank credit card?
STRONGLY
DISAGREE
DISAGREE AGREE STRONGLY
AGREE
15 15 30 40
INTERPRETATION: It is noticed that majority of the customer strongly agrees for
rate your bank credit card
15% 15%
30%
40%
strongly disagree disagree agree strongly agree
Series1
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 24/32
24
9. Does your bank credit cards are accepted to pay for personal expenses?
STRONGLY
DISAGREE
DISAGREE AGREE STRONGLY
AGREE
7 13 40 30
INTERPRETATION: It is noticed that majority of the customer agrees for credit
cards are accepted to pay for personal expenses.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
STRONGLY
DISAGREE
DISAGREE AGREE STRONGLY
AGREE
Series1
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 25/32
25
HYPOTHESIS 1:( Chi-square test)
Is there any relation between interest rate and Overall
satisfaction?
Null Hypothesis:
Ho: There is no relation between interest rate and Overall satisfaction.
Alternative Hypothesis:
H1: There is relation between interest rate and Overall satisfaction.
Level of significance –
5%
Degree of freedom- 16
Duration H.S S N D.s H.D.S TOTAL
highly
satisfied
5 7 5 6 5
28
Satisfied 3 5 5 5 5 23
Neutral 4 5 5 4 422
Distasified 3 2 3 5 2 15
Highly dis
satisfied
2 4 2 2 2
12
TOTAL 17 23 20 22 18 100
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 26/32
26
Duration H.S S N D.s H.D.S TOTAL
highly
satisfied
5
4.760
7
6.440
5
5.600
6
6.160
5
5.040 28.00
satisfied 3 3.910 5 5.290 5 4.600 5 5.060 5 4.140 23.00
Neutral 4 3.740 5 5.060 5 4.400 4 4.840 4 3.960 22.00
distasified 3 2.550 2 3.450 3 3.000 5 3.300 2 2.700 15.00
Highly dis
satified
2
2.040
4
2.760
2
2.400
2
2.640
2
2.160 12.00
TOTAL 17 23 20 22 18 100.00
OBSERVATION EXPECTED O-E
(O-
E)2
(O-
E)2/E5 4.76 0.24 0.06 0.01
7 6.44 0.56 0.31 0.05
5 5.60 -0.60 0.36 0.06
6 6.16 -0.16 0.03 0.00
3 3.91 -0.91 0.83 0.21
5 5.29 -0.29 0.08 0.02
5 4.60 0.40 0.16 0.03
5 5.06 -0.06 0.00 0.00
4 3.74 0.26 0.07 0.02
5 5.06 -0.06 0.00 0.00
5 4.40 0.60 0.36 0.08
5 4.84 0.16 0.03 0.01
2 2.04 -0.04 0.00 0.00
4 2.76 1.24 1.54 0.56
2 2.40 -0.40 0.16 0.07
2 2.64 -0.64 0.41 0.161.28
X2
Cal= 1.28
X2
tab = 26.30
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 27/32
27
So, Null hypothesis is accepted. There is no relation between interest
rate and Overall satisfaction.
HYPOTHESIS 2:
Is there any relation between easy to handle and Overall
satisfaction?
Null Hypothesis:
Ho: There is no relation between Network coverage and Overall
satisfaction
Alternative Hypothesis:
H1: There is relation between easy to handle and Overall satisfaction
Level of significance-5%
Degree of freedom-16
Duration H.S S N D.s H.D.S TOTAL
highly
satisfied
2 3 2 5 3
15
Satisfied 4 2 5 2 2 15
Neutral 5 6 5 6 5 27
Distasified 3 5 2 5 5 20
Highly dis
satisfied
3 5 5 5 5
23
TOTAL 17 21 19 23 20 100
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 28/32
28
Duration H.S S N D.s H.D.S TOTAL
highly
satisfied
2
2.550
3
3.150
2
2.850
5
3.450
3
3.000 15.00
satisfied 4 2.550 2 3.150 5 2.850 2 3.450 2 3.000 15.00
Neutral 5 4.590 6 5.670 5 5.130 6 6.210 5 5.400 27.00
distasified 3 3.400 5 4.200 2 3.800 5 4.600 5 4.000 20.00
Highly dis
satified
3
3.910
5
4.830
5
4.370
5
5.290
5
4.600 23.00
TOTAL 17 21 19 23 20 100.00
OBSERVATION EXPECTED O-E
(O-
E)2
(O-
E)2/E2 2.55 -0.55 0.30 0.12
3 3.15 -0.15 0.02 0.01
2 2.85 -0.85 0.72 0.25
5 3.45 1.55 2.40 0.70
4 2.55 1.45 2.10 0.82
2 3.15 -1.15 1.32 0.42
5 2.85 2.15 4.62 1.62
2 3.45 -1.45 2.10 0.61
5 4.59 0.41 0.17 0.04
6 5.67 0.33 0.11 0.02
5 5.13 -0.13 0.02 0.00
2 6.21 -4.21 17.72 2.85
3 3.91 -0.91 0.83 0.21
5 4.83 0.17 0.03 0.01
5 4.37 0.63 0.40 0.09
5 5.29 -0.29 0.08 0.027.79
X2
Cal= 7.79
X2
tab = 26.30
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 29/32
29
So, Null hypothesis is accepted. There is no relation between easy to
handle and Overall satisfaction.
HYPOTHESIS 3:
Is there any relation between more security and Overall
Satisfaction?
Null Hypothesis:
Ho: There is no relation between local call service and overall
satisfaction
Alternative Hypothesis:
H1: There is relation between more security and overall satisfaction.
Level of significance- 5%
Degree of freedom-16
Duration H.S S N D.s H.D.S TOTAL
highly
satisfied
5 6 5 5 5
26
Satisfied 4 5 5 5 2 21
Neutral 3 5 5 5 5 23
Distasified 2 3 2 6 3 16
Highly dis
satisfied
3 2 5 2 2
14
TOTAL 17 21 22 23 17 100
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 30/32
30
Duration H.S S N D.s H.D.S TOTAL
highly
satisfied
5
4.420
6
5.460
5
5.720
5
5.980
5
4.420 26.00
satisfied 4 3.570 5 4.410 5 4.620 5 4.830 2 3.570 21.00
Neutral 3 3.910 5 4.830 5 5.060 5 5.290 5 3.910 23.00
distasified 2 2.720 3 3.360 2 3.520 6 3.680 3 2.720 16.00
Highly dis
satified
3
2.380
2
2.940
5
3.080
2
3.220
2
2.380 14.00
TOTAL 17 21 22 23 17 100.00
OBSERVATION EXPECTED O-E
(O-
E)2
(O-
E)2/E
5 4.42 0.58 0.34 0.08
6 5.46 0.54 0.29 0.05
5 5.72 -0.72 0.52 0.09
5 5.98 -0.98 0.96 0.16
4 3.57 0.43 0.18 0.05
5 4.41 0.59 0.35 0.08
5 4.62 0.38 0.14 0.035 4.83 0.17 0.03 0.01
3 3.91 -0.91 0.83 0.21
5 4.83 0.17 0.03 0.01
5 5.06 -0.06 0.00 0.00
5 5.29 -0.29 0.08 0.02
3 2.38 0.62 0.38 0.16
2 2.94 -0.94 0.88 0.30
5 3.08 1.92 3.69 1.20
2 3.22 -1.22 1.49 0.46
2.90
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 31/32
31
So, Null hypothesis is accepted. There is no relation between more
security and Overall satisfaction.
X2
Cal= 2.90
X2
tab = 26.30
7/31/2019 Report on Comparison Between
http://slidepdf.com/reader/full/report-on-comparison-between 32/32
CONCLUSION: The final conclusion of the study is that hdfc bank credit
card are very much satisfied by the services which HDFC bank provides.
ICICI and SBI have earned the second and third position respectively.
According to survey the customers of ICICI and SBI is also satisfied andon good position.