HDFC Bank Ty

MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK
A Study of
Customer Satisfaction For the

CUSTOMERS Of
A PROJECT SUBMITTED TO THE BHAVNAGAR UNIVERSITY OF BHAVNAGAR IN PARTIAL FULFILLMENT FOR THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION BY MARADIYA MOHIZ R. GUIDED BY Ms. Nidhi Dave
SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT BHAVNAGAR UNIVERSITY BHAVNAGAR
BATCH 2006-2009
SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT
PREFACE
We feel really a great pleasure to submit our project Report. This project Report shall provide an information and comprehensive Knowledge of Satisfaction of customer of HDFC Bank Ltd. with its services. This project report provides us a vast product, process and their brand name, which are facing various problems. This project study has been undertaken to understand the marketing discipline of and organization as a part of student of management. This project report has provided us the clarity of the marketing concept like relationship marketing used during the firm and industry as well. Finally we conclude customer survey for the service of
HDFC BANK LTD."
ACKNOWLEDGEMNT
It is my proud privilege to express my sincere gratitude to all those who helped me directly or indirectly in completion of this project report. I am greatly indebted to Mr. . (. ) Mr. . (..) for their support, guidance and valuable suggestions by which this work has been completed effectively and efficiently. These all contributions are of immense value. I owe thanks to Mr. . for providing the required data to complete this project. Without which it is not possible to complete the project. Last but not least we are indebted to those entire people who indirectly contributed and without whom this work should not have been possible. Endeavour has been made to make the project error free yet I apologies for the mistakes.
EXECUTIVE SUMMARY
Customer satisfaction is a post purchase experience that a customer gets after consumption of products and services and becomes deciding factor for customer to make rational decision of repurchase and to recommend it to others. But in a purely service industry, service is provided, consumed and analyzed at the point of consumption of service. This study basically focuses on measurement of customer satisfaction related to Service offered and rendered at HDFC BANK. This study gives a birds eye view of the hard and soft services provided by HDFC BANK (retail) to their clients. Recommending the services, rating the experience with HDFC BANK, service charges and suggestions were some of the aspects explored. Rating the products, handling of compliant calls, response time, repeat calls encounter and overall level of satisfaction were some of the issues were also discovered. To accomplish the task, a survey was carried in and around Bhavnagar city (retail outlets of HDFC BANK) with a sample of 123 respondents taken on a random basis approaching the customers who walked in during banking hours. A structured questionnaire was prepared and administered and the data so collected was analyzed both by percentages and statistical methods. Extensive use of SPSS (Statistical Package for Social Sciences) software was incorporated for getting the analytical report. 81% customers recommend HDFC BANK products, 91% of these are having good purchasing experience with the company. 58% of the customers said that the maintenance charges charged by the company is moderate, 55%of which are having good purchasing experience and 85% of which recommend HDFC BANK to others. 63% customers are satisfied with the existing services rendered by the organization. Majority (67%) of customers rated the HDFC BANK products as good and 67% of which are highly satisfied with the service of the company. The collected data was also analyzed to calculate the customer satisfaction for the different sets of respondent. Is a satisfied customer asset for a company? Definitely not. Unless and until he becomes a loyal customer. Approximately 76% customers of HDFC Banks are SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT 4
MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK discovered to be loyal. This is the area where the organization can improve in the near future. Researchers by their ability have provided some measures to convert a satisfied customer into a loyal customer.
SUGGESTIONS E-mails can be used effectively for disseminating information among customers. Since application of this is most cost effective, the organization can mail the required information to their customer. This study is an earnest effort to enhance the practical knowledge by measuring the customer satisfaction as well as contributing to the organizational efficiency by suggesting ways to manage and improve the same profitably in the highly competitive time to come.
INDEX
NO.
1 2 3
PARTICULAR
INTRODUCTION OF BANKING INDUSTRY COMPANY PROFILE REASEARCH MATHODOLOGY 3.1 CUSTOMER SATISFACTION CONCEPTS 3.2 REASEARCH OBJECTIVES
P. No.
7 11 19 21 32 34 37
3.3 SAMPLING DESIGN 3.4 3.5 3.6 3.7 4 5 6 7 8 REASEARCH DESIGN REASEARCH INSTRUMENT LIMITATION OF THE STUDY DATA ANYLYSIS AND INTERPRETATION FINDINGS SUGGESTIONS CONCLUSION BIBLIOGRAPHY APPENDIX
43 45 49
60 62 64
INTRODUCTION OF BANKING INDUSTRY
INTROUDCTION OF BANKING INDUSTRY

In India banking industry started from years ago. In past, the name of banking industry was SARAFI PEDHI. At time of pedhi, they sale and buy money from people, but the changing of time the concept of sarafi would be change to Bank. That is the first phase to evolve banking industry in India. In past the banking industry started for only earning profit but now the scenario changed to the relationship, i.e. marketing of banking service. Relationship oriented marketing practices is not new in the business circle. It is argued that the technological development in collection and use of marketing information have led to a change in the marketing paradise itself away from transactional marketing and towards relationship marketing. This is concerned with all activities directed towards attracting developing and retaining customer relationship. Relationship exposures of different companies with their customer go on differing from one company to another. Indian banking sector has never taken relationship marketing a New pardon seriously. It is only after liberalization in 1990 that banks are moving towards customer centric approach.
The core of Indian banking system public sector banks, is facing lot of competition from private sector banks, hence the relations of customer relationship marketing is of prime important trends of customer relationship in public sector banks.
Changing dimensions of marketing of banking service relationship marketing.

In 1990 the concept of relationship marketing has emerged strongly the focus has been changed from transaction marketing the focus is on single sale orientation on product feathers short time scale, little emphasis on customer service and limited customer commitments where as in relationship marketing the focus is on customer retention orientation on product benefits long time scale high customer service emphasis and high customer commitment relationship marketing is a philosophy of doing business. That focuses on keeping and improving current customer rather than enquiry new customer. Building on this assumption and that fact that it is usually much cheaper to keep a current customer than to attract a new customer becomes partner and the firm must make long-term commitment to maintain those relationships with quality, service and innovation. Webster (1992) berry (1983) stares the primary goal of relationship marketing is to build and maintain a basic of committed customer who are profitable to the organization to achieve this goal the firm will focus on attraction, retention and enhancement of customer relationship. The relation ship marketing helps the customer on one hand and the service provider on the other hand. Purusuraman, diethaml and berry (1985, 1988) suggested that the criteria used by customer are important in mould in there exceptions perceptions and hence satisfaction. These are tangibility, Reliability, responsiveness, communication, credibility, security, competence, under standing, and access. Later another condensed met to five categories wiz tangibility reliability, responsiveness, assurance and sympathy. Rosby (1987, 1995) emphasized the important of relationship marketing and argued that the future of marketing depends on maintaining relationship, which are essentials for long-term profits. (1985, 1990) Discussed the importance of employees customer relationship. He expressed the as the employed are the Representative encounter with the customer would help in maintain the positive relationship with customer and make him loyal towards the service provider- Ganeshan (1994)
MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK Suggested that long-term orientation in buyer seller relationship is important, as it is the function of tow things mutual dependence and trust between them. Both these parameters help in bonding of buyer and seller thus improving their relationship. Morgan and Hunt (1994) theories that successful relationship marketing requires relationship commitment and trust and gave the model of relationship commitment and trust as mediating variables.
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COMPANY PROFILE
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INTRODUCTION OF HDFC BANK
he 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.
PROMOTER
HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.
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BUSINESS FOCUS
HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank's business philosophy is based on four core values Operational Excellence, Customer Focus, Product Leadership and People.
CAPITAL STRUCTURE
The authorised capital of HDFC Bank is Rs550 crore (Rs. 5.5 billion). The paidup capital is Rs. 424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity and about 17.6% of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). Roughly 28% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 570,000 shareholders. The shares are listed on the Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol 'HDB'.
Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 1412 branches spread over 528 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centers where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE has a strong and active member base. SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT 13
The Bank also has a network of about over 2890 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.
MANAGEMENT
Mr. Jagdish Kapoor took over as the bank's Chairman in July 2001. Prior to this, Mr. Kapoor was a Deputy Governor of the Reserve Bank of India. The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.
The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC are also on the Board.
Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.
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TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank's branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs).
The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank. The Bank's business is supported by scalable and robust systems which ensure that our clients always get the finest services we offer.
The Bank has prioritised its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share.
BUSINESSES
HDFC Bank offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank has three key business segments:
Wholesale Banking Services:

The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and agree-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery / SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT 15
MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporate including multinationals, companies from the domestic business houses and prime public sector companies. It is recognised as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks.
Retail Banking Services:

The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by worldclass service and delivered to customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking. The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form. HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the MasterCard Maestro debit card as well. The Bank launched its credit card business in late 2001. By March 2008, the bank had a total card base (debit and credit cards) of 9.1 million. The Bank is also one of the leading players in the merchant acquiring business with over 61,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is well positioned as a leader in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc. SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT 16
MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK Treasury Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalisation of the financial markets in India, corporate need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.
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COMPANY PROFILE
1. Name: THE HOUSING DEVELOPMENT FINANCE CORPORATION BANK LTD (HDFC) 2. Address: HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013 Maharastra, India August - 1994
3. Establishment month & year: 4. Chairman: Mr. Jagdish Capoor 5. Vice- Chairman: Mr. Keki M. Mistry 6. Managing Director: Mr. Aditya Puri 7.Directors:
Mr. Vineet Jain Mrs. Renu Karnad Mr. Arvind Pande Mr. Ashim Samanta Mr. C M Vasudev Mr. Gautam Divan Dr. Pandit Palande Mr. Paresh Sukthankar Mr. Harish Engineer
8.No. of branches: 761
9. No. of ATMs: 1977
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RESEARCH MATHODOLOGY
19
INTRODUCTION
PROBLEM STATEMENT: The management of HDFC BANK desires to know about the satisfaction of their customers related to the Retail Banking products and also it wants to know the attitude, image and motivation of customers towards banking services provided by them. OBJECTIVE OF THE STUDY To measure the Customer Satisfaction towards banking services rendered by HDFC BANK Retail div. IMPORTANCE OF THE STUDY Besides measuring Customer Satisfaction, we also came to know about following crucial aspects related to CUSTOMER Recommendation of the HDFC BANK products to others Their experience at HDFC BANK Retail branch. Feedback on maintenance charge CUSTOMER Handling of complaint calls Response time (TAT) Knowledge of the employees (Personal bankers and tellers) Repeat calls encounter
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CUSTOMER SATISFACTION CONCEPTS
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CUSTOMER SATISFACTION Customer satisfaction means giving the customers what they really want, when they want it and the way they want it. It involves understanding customer expectations and meeting them fully. It can be defined as an outcome of purchase and use resulting from the buyers comparison of rewards and the costs of the purchase in relation to the anticipated consequences. (Churchill and Surprenant 1982, 493) Customer is an individual or an organization. Their requirements are very similar. Conformance of services to their requirements and its performance in actual stage Competitive prices Quality and reliability Prompt delivery Service
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IMPORTANCE OF CUSTOMER SATISFACTION Differentiation strategy: Satisfaction is quickly becoming the key to competitive posture within an industry. Initially, products or services secure life in the market by fulfilling a basic need. But only offering minimal functionality grants a product nothing than a commodity status. To ensure long-term market success, businesses have created brands. Brands allowed businesses to develop and sustain an image, differentiating one anothers products in the eyes of customer. Today most companies are leveraging branding to its maximum benefit. To further differentiate brands, customer satisfaction is the most likely next strategy. Companies are realizing that the brand that best satisfies its customers not only keeps them longer, but also benefits from positive word of mouth. Improved profitability: There is both an intuitive belief and empirical evidence that improved customer satisfaction will increase organizational profitability. Improved customer retention: Satisfaction extends customer lifetimes and lifetime values. Also focusing on satisfaction helps to estimate negative word if mouth of dissatisfied customers. Losing a not satisfied customer is more severe than it sounds because one dissatisfied customer may speak to as many as nine others, increasing its dissatisfaction by nine folds. Improved market share: There are always four sources of business for a firm. Four sources of customers in any purchase decision have been identified as: retained customers, customers switching from competition, customers new to the category and customers leaving the category. Different probabilities of success are associated
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MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK with each of these four classes of customers because retained customers exhibit probability for additional business, they deserve more attention and focus than they currently receives.
Customer Satisfaction has long reaching impact on the current and perhaps future viability of an organization. The cycle suggests that satisfied customers tolerate higher margins that can be used to better pay employees. This boosts employee moral, reducing employee turnover, which in turn helps to produce more satisfied customers and so on.
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BY PRODUCT OF CUSTOMER SATISFACTION
Thus by enhancing the relations with the customers by taking an initiative towards their satisfaction thereby attracting them will ultimately improve their perception of value towards the organization which will lead to increase in profits.
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MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK ROLES OF CUSTOMER SATISFACTION MEASUREMENT: Information: The primary intention for measuring customer satisfaction is to collect information regarding either what customers report needs to be changed ( in a product , service , or delivery system ) or to assess how well an organization is currently delivering on its understanding of these needs. This is an
informational role.
As such, marketing research and psychological
measurement have much relevance. Communication: The very act of surveying customers conveys a very positive message; the organization is interested in its customers well-being, needs, pleasures, and displeasures. While this is admittedly a marketing communication roles. Thus the image of the organization in the customers mind regarding its offerings becomes the reality related to its products and services offered.
message
there is nothing wrong in allowing a survey to serve both the informational and
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INFORMATION
COMMUNICATION
IMAGE
HOW TO ACHIEVE CUSTOMER SATISFACTION?
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CAN 100% CUSTOMER SATISFACTION BE ACHIEVED?
It is not possible to achieve 100% customer satisfaction ever. Reason being simple that every time the organization tries to meet the customers expectation, the level of expectation increases next time thus there is always some gap between the two. The organization can at least try to always keep on meeting or staying close to customer expectations so that the gap between the service expected and actually delivered doesnt increases leading to dissatisfaction
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WHOSE RESPONSIBILTY IS TO MEASURE AND MANAGE CUSTOMER SATISFACTION? Its the responsibility of the management to take the initiative and measure the customer satisfaction but it is the responsibility of the whole organization to manage and improve.
A nave view of business might suggest that profit is the appropriate goal of an organization, which is a very shortsighted view. From a practical viewpoint, the primary goal of an organization has to be customer retention. Only with a steady base of customers can an organization hope to make a profit. And only by first satisfying customers can a business ever hope to retain its current customers.
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MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK COMPLAINTS AND CUSTOMER SATISFACTION: Frequently businesses operate on the principle that if things go wrong, they will hear about it from their customers. Countless investigations document the fallacy of relying on customer complaints. In the first place, 50% of customers who experience a problem
never complain to anyone!
Of the
remaining half, most (45%) complain only to frontline personnel who either fail to escalate the problem up to management and/or mishandle solving the problem. Only 5%(one unhappy customers in 20) of all customers who have a problem actually voice it to management. So, complaints are an inefficient method with which to monitor customer satisfaction.
INEFFICIENT METHOD OF CUSTOMER SATISFACTION

CUSTOMERS COMPLAINING TO ORGANIZATION
EFFICIENT METHOD OF CUSTOMER SATISFACTION

Thus the organization should take the initiative to reach out to its customers for the valuable feedback related to its products and services offered. The feedback given should be analyzed thoroughly to measure customer satisfaction; this process should be repeated after a pre decided gap of time frame not only to measure but also to improve customer satisfaction in long run.
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MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK WHAT IS THE ULTIMATE GOAL? The ultimate goal of any organization should be to position itself as a better product and service offering organization through continuous measurement and management of customer satisfaction.
Best can be always be made better.
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RESEARCH OBJECTIVES
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1)
To determine customer satisfaction for HDFC Banks users. To study services used by customers of HDFC Banks. To study the type of services used by customers. To study services provided by HDFC Bank is convenient to them or not.
2)
3)
4)
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SAMPLING DESIGN
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SAMPLING DESIGN
Relevant population: Study mainly focused on the customers who visit and transact at retail branch banks. Database of 8000 + customer were already there with the HDFC BANK (SION branch). Because of geographical, time and money constraint, method of Simple Random Sampling was incorporated to select the samples from Bhavnagar. Because of this process, each element of the target population has an equal chance of being selected into the sample. Parameters of Interest: Population proportion is the parameter of interest where the proportion satisfied with the products and services rendered by the HDFC BANK was investigated. Sample statistic is the sample proportion, which estimated the required population proportion. Sampling frame: The division thus providing the sampling frame prepared list of all the customers going for RETAIL BANKING. Type of sample: With the target population being known and having the time, money and geographical constraints, the probability random sampling method was adopted. With this sample design, we made probability-based confidence estimates of the population proportion of interest. The selection followed an appropriate procedure in which there is no chance for the interviewers or others to modify the selection made.
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Sample size: As the population Standard Deviation is not known and we intended to follow Normal Distribution curve while testing Hypothesis, a sample of 15 respondents was selected at random to obtain the sample proportions. Pilot survey was conducted and the responses through the questionnaire were registered and the sample proportions were determined. These sample proportions were used along with the Confidence level of 80% and +5% allowable errors in the sample size estimation to arrive at the main sample size of 57. Data source: Our primary data comes from an opinion-based survey, which was then conducted across the entire Bhavnagar with the sample size of 57 respondents drawn, random. Our secondary data was scanned from various books, magazines, Internet etc. The final model has been built by synergizing data from the above two sources.
PRIMARY RESEARCH (OPINION SURVEY)
SECONDARY RESEARCH (INFORMATION SCANNING)
DATA SOURCE
FINDINGS RECOMMENDATIONS
SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT 36
RESAEARCH DESIGN
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RESEARCH DESIGN
EXPLORATION: Purpose of the study: The research design is of Descriptive type which is designed to describe the proportion characteristic of the population wherein the questions related to the satisfaction level of the customers were incorporated in the instrument and are tried to answer the queries regarding same.
Who recommends the product? What is the reason to go for HDFC BANK? Since when the person is rendering the service from HDFC BANK? From where one get the influence to go for HDFC
BANK?
How the HDFC BANK services are perceived by the Customer itself?
Qualitative: Factors important for customers in a bank were studied and depending upon them the questionnaire was prepared. See the Appendix (Part-3) Instrument: The instrument used for the research is the questionnaire, which was prepared after a thorough knowledge of various aspects of customer satisfaction SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT 38
MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK process. The instrument when it was drafted for the first time for the pilot survey was informative enough to gather the required information requiring some Amendments. Because of this, required revision of the instrument was done after which the main was derived and the final revised questionnaire was administered on the same. Questionnaire Design: The questionnaire contained the questions that help to dive deep in the customer satisfaction level of customer in a bank. Recommendation of the HDFC BANK services to others, rating experience at HDFC BANK, feedback on maintenance charges handling of complaint calls, response time, and knowledge of the personal bankers Repeat calls encountered etc., were some of the issues which were probed with the help of the instrument. Studys Variables: The study was mainly focused on the proportion of the population which was satisfied with the products and services rendered by HDFC BANK. For this, the pilot testing (survey) was conducted with a sample size of 15 in various parts of Bhavnagar. Through this, sample proportions were analyzed and were used to derive the main sample size for conducting the survey. The sample proportions now obtained were used to test the hypothesis related to the population proportion and was used to estimate the required population proportion. (See Appendix Part-2)
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DATA COLLECTION: Location: Bhavnagar was selected as area for conducting the sample survey to gather the opinion knowledge of the respondents. Data collection time: The instruments were administered from third week of May to third week of Feb. 2004 to collect the response. It took around 2 weeks of time to gather all the relevant information. Field instructions: The field instruction of asking the right respondent to give the response was decided. This is because at times, the respondents were not there in the bank. Customer generally comes in the post afternoon time just to use the ATM, whereas the retail customer of particular branch comes early in the morning. Relevance of secondary data: The relevant secondary data was gathered from the authenticated websites only. Also very well accepted business magazines and journals were referred to collect the information required for the project. (See Bibliography) TIME PLANNING: For this project, we had planned out the entire research in terms of timelines. The work of survey design and data collection was planned and carried out in a highly systematic manner. The work towards the research was started around third week of feb 2004 and culminated by the end of second week of march 2004.
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DATA ANALYSIS; Data handling: The collected data was handled carefully in the form of filled-up questionnaires. The response was then transferred manually to a paper-spread sheet. Preliminary analysis: Preliminary analysis of the pilot survey was done to find out the sample proportion. This was done with the help of SPSS package and then with this the final sample size to conduct the survey for collecting secondary data was calculated. STEPS PLANNING SURVEY DESIGN PILOT RUN SURVEY CONDUCT SECONDARY DATA ANALYSIS PROJECT FINALIZATIO N The response from the survey was then analyzed again to get the final sample proportion. Statistical tests: Hypothesis testing was done to estimate the population proportion through the sample proportion. For details see appendix (part 2). Softwares used for the analysis: SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT 41 January
WEEKS
Feb 3-4 1-2
Feb 3-4
March 1-2
1-2
MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK SPSS package was extensively used to analyze the primary data and also MS-Excel Package was used whenever required for smaller calculations. Data presentation: The collected data is presented in the form of Bar graphs, Pie chart and tables according to the requirement of the project.
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LIMITATION OF STUDY
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LIMITATIONS OF THE STUDY

The customers study was conducted only in Bhavnagar city. The results therefore are confined to this area only and need not necessarily be applicable to other areas. The sample size of the customers was small, so it was not able to convey the attitude of the customers Inadequate time was the major constraints during the project work Respondents might have some biased views and this could have affected the findings to a certain extent In the questionnaire, questions are very limited, because it is very difficult to get the information from the busy officials.
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CUSTOMER SATISFACTION MEASUREMENT
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CUSTOMER LOYALTY INDEX

Customer loyalty index is obtained by three major factors: Intention to stick to the same brand Willingness to recommend to others the brand Overall satisfaction with the brand Any of the above variables in isolation does not necessarily indicate loyal customer. But above tree components together form a derived construct customer loyalty OVERALL SATISFACTION
PRO OF RECOMMENDING PROBABILITY OF NOT SHIFTING
BABILITY
Secured customers = 55 x 100 / 118 = 46.61%
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THE ROAD AHEAD . . .
ROAD AHEAD
Is the satisfied customer asset to the company? No, he is not. This can be better explained from a model given below
Top rung Tells? Tells everyone Refers? Refers everyone Buys again? Always, returns to
Middle rung
about you proactively buy Tells a Refers a Sometimes Lowest rung few people May A customer is few people tell If asked, If convenient, may buy returns
someone, may refer if asked
called a loyal customer when he
proactively recommends the company or the brand to others. A customer is merely satisfied or very satisfied is on lowest rung of customer service ladder. There is no assurance that a customer who is satisfied will return again for availing services, but there is full assurance that a customer who is loyal will return for availing services. Today 76% of customers of HDFC bank. are loyal to it; other 84% are satisfied or very satisfied. This indicates that these 84% of customers may be taking the offering of this company due to various uncontrollable reasons. There is a major threat for HDFC BANK when the uncontrollable reasons will become controllable. In the future, HDFC BANK should try to convert its satisfied customers to loyal customers.
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RESEARCH FINDINGS
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RESEARCH FINDINGS
CUSTOMERS:
RATING OF HDFC BANK SERVICES

CUSTOMERS were asked to rate the HDFC BANK services in ratings like Excellent, Good and Fair. Following Pie shows the response given:
RATING OF HDFC BANK SERVICES

80 60 40 20 0 % 66 Excellent 26.4 7.6 1 rating Good fair
From the above Pie diagram, it is clear that 66% CUSTOMERS rate the HDFC BANK SERVICES as Excellent, 26.4% rate them as Good and rest of them say that HDFC BANK SERVICES are Fair.
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HANDLING OF COMPLAINT CALLS

Customers were asked about the way the complaint calls are handled by the company. Following Pie shows the response in categories like Good, Fair and Poor:
HANDLING OF COMPLAINT CALLS

100 80 60 40 20 0 77.2 21.9 1 1 RATING
Good Fair poor
From the Pie, it is clear that 77.2% customers say that the handling of complaint calls by the company is Good i.e.; they are assured of the quick service in the least possible time.21.9% customers say that the way the complaint calls are handled is Fair and the rest 1% say that it is Poor.
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RESPONSE TIME
Customers were asked to give the feedback regarding the response time. Following Pie shows the same in categories like Soon and Late:
RESPONSE TIME
150 % 100 50 0 1 RATING 95.9 4.1
Soon late
From the Pie, it is clear that the 95.9% customers say that the response after the complaint calls are registered is Soon whereas the remaining 4.1% say that the response is Late.
TURN AROUND TIME

Customers were asked about the turn around time required by the personal banker. Following responses were given in categories like More, Moderate and less:
TURN AROUND TIME

100 80 60 40 20 0 78 Less 20.3 1.6 1 RATING Moderate More
From the Pie, it is clear that 78% customers say that the time required by the personal banker is less while 20.3% say that the time required is moderate, whereas remaining 1.6% customers give the feedback that the time required is more .
KNOWLEDGE OF PB (PERSONAL BANKER)

Customers were asked to give the feedback regarding the knowledge of the PB in categories like Good and Fair. The customers used their own judgment about the capability of the service fellow depending upon his accuracy and speed.
KNOWLEDGE OF PERSONAL BANKER

100 50 0 1 RATING % Good Fair
From the Pie, it is clear that 92.6% customers say that the knowledge of the PB is Good whereas remaining 7.3% of them feel that its Fair.
THROUGH WITH WORK IN THE SAME VISIT

Customers were asked if they were able to get their work done in the same visit. Following Pie shows the response given in categories like yes and No: TROUGH WITH WORK IN 1 VISIT
150 % 100 50 0 1 RATING 96 4
1 Visit more than 1 Visit
96% customers said that the machine is restored in the same visit, while remaining 4% of them said at times two visits at maximum are required by the service engineer to restore the machine.
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SERVICE EXPECTED AND SERVICE DELIVERED

Customers were asked about the gap if it is there between the services expected and service delivered. Following Pie shows the response given in the categories of Yes and No:
IS THERE GAP IN SERVICE EXPECTED AND SERVICE DELIVERED

100 50 0 91.8 8.8 1 RATING No Yes
From the Pie, it is clear that 91.8% customers said that there is no gap between what the service they expected from the company and what they have been delivered, while 8.1% customers feel that there is difference between the two, reasons separately noted down.
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RECOMMENDING THE HDFC BANK SERVICES

When the respondent was asked whether he/she would like to recommend the HDFC BANK SERVICES to others, following response was given:
WILL YOU RECOMMEND HDFC BANK SERVICES

100 50 0 1 RATING % 80.2 2.6 16.6 Yes No can't say
80.8%( majority) customers said that they recommend the HDFC BANK SERVICES to others which is a very good response in companys favor, 2.6% customers said that they would not be recommending the companys offering to others whereas 16.5% customers were not in a position to decide whether they would or wouldnt recommend. Here is a scope for the company to turn this last segment of the respondents to product recommending customer segment.
57
EXPERIENCE WITH HDFC BANK

When the customers were asked to rate their experience of banking HDFC BANK SERVICES in the categories of Excellent, Good, Fair and Poor, following feedback was obtained:
EXPERIENCE WITH HDFC BANK

100 80 60 40 20 0 81 Excellent 11 1 RATING 5 Good fair poor
5% customers said that their experience at HDFC BANK SERVICES was fair whereas 81% of them said that the experience was excellent. Only few (approximately 1%) customers gave the feedback that their product banking experience with the company was poor and around 2% customers were not in position to rate their experience of banking HDFC BANK SERVICES. Majority of the customers (11%) said that their experience was good.
58
CUSTOMERS ON MAINTENANCE CHARGES

The customers gave feedback related to the maintenance charges, which was categorized into High, Moderate and Low. Following Pie chart shows the response:
80 70 60 50 40 30 20 10 0
67.8 High moderate 24.2 4.39 1 3 low can't say
From the Pie chart, it is clear that 24.2% customers said that the maintenance charges charged by the company is high while 4.39% customers gave the response related to the maintenance charges in the Low category.67.8% of the customers said that the maintenance charges is moderate and the
Remaining customers (3.5%) were not sure about the nature of maintenance charges as to whether it was low, moderate or high.
59
CONCLUSIONS
60
CONCLUSIONS
One of the basic in successful organization has been the mindset of not standing still, not resting on past laurels, but pushing harder and harder for profitability and growth. This seems to be true with HDFC BANK., one of the fast growing companies in India. Even though most of the HDFC BANK customers are getting good service, company has to rejuvenate the existing facilities to make a foot hold in banking segment. We are optimistic that the company will be able to continue its presence in this segment in the years to come. We are sure that the experience we gained by undertaking this study will help us a lot in our future career. My sincere thanks to all the HDFC BANK personnels who have helped us to complete this study successfully.
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BIBLIOGRAPHY
62
BIBLIOGRAPHY
Journals: NMIMS management review (July Dec 1998, Volume 10, no 2)
Book:
Marketing Research - Alvin C.Burns & Ronald F.Bush Statistics for Management - Richard I.Levin & David S.Rubin Improving your measurement of customer satisfaction - Terry G. Vavra Customer Satisfaction is worthless Customer loyalty is priceless Jeffrey Gitomer SPSS for beginners Vijay Gupta Consumer Behavior Schiff Man Building Strong Brands David Aaker Market Research An Applied Orientation Naresh Malhotra.3rd edition Marketing Research A Practical Approach for the New Millennium Joseph Heir Jr.,Robert P,Bush and David J.Ortinar
Website:
www.marketingteacher.com www.marketing-bulletin.massey.ac.nz www.chass.ncsu.edu/garson/pa765/statnote.htm www.marketingpower.com www.ama.org
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APPENDIX
64
APPENDIX
Part I : TERMS USED IN THE RESEARCH PROJECT
TARGET POPULATION
Relevant collection of elements about which we wish to make some inferences
PILOT TESTING
It is small-scale test of what the survey is to be, including all the activities that will go into the final survey. It helps in deciding upon the size of the original sample for the main survey
NORMAL DISTRIBUTION
A distribution of a continuous random variable with a single-peaked bell shaped curve. The mean lies at the center of the distribution, and the curve is symmetrical around a vertical line erected at the mean. The two tails extend indefinitely never touching the horizontal axis
STANDARD DEVIATION
The positive square root of the variance; a measure of dispersion in the same units as the original data, rather than in the squared units of variance
VARIANCE
A measure of the average distance between the mean and each item in the population
65

NUMBER OF STANDARD DEVIATIONS Z
For any given area under the Normal curve, the number of standard deviations can be known from the table of areas under the normal probability distribution between the mean and positive value of Z
CONFIDENCE LEVEL
The probability that statisticians associate with an interval estimate of a population parameter, indicating how confident they are that interval estimate will include the population parameter
SAMPLE PROPORTION
Sample proportion is equal to the elements in the sample belonging to the category of interest, divided by the total number of elements in the sample. These are represented by p and q
SIZE OF THE SAMPLING ERROR E
No sample will fully represent its population in all respect. The numerical descriptors that describe samples may be expected to differ from those that describe population because of random fluctuations inherent in the sampling process. This is called Sampling Error and reflects the influence of chance in drawing the sample members
HYPOTHESIS
An assumption or speculation we make about a population parameter NULL HYPOTHESIS H0 The hypothesis, or assumption about a population parameter we wish to test, usually an assumption of the status quo
ALTERNATIVE HYPOTHESIS H1
66
MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK Whenever we reject the hypothesis, the conclusion we do accept is called the alternative hypothesis
LEVEL OF SIGNIFICANCE
A value indicating the percentage of sample values that is outside certain limits, assuming the null hypothesis is correct, that is, the probability of rejecting the null hypothesis when it is true
POPULATION PROPORTIONS
Population proportion is equal to the elements in the population belonging to the category of interest, divided by the total number of elements in the population STANDARD ERROR OF PROPORTION S.E.P It is the square root of ratio of service of population proportions to the sample size.
POPULATION PARAMETER
Population parameter are summary descriptors (e.g., incidence, mean, variance, proportion etc.)Of variables of interest in the population
SAMPLE STATISTICS
Sample statistics are descriptors of the relevant variables computed from the samples data. They are the estimators of population parameters
SAMPLING FRAME
It is the list of elements from which the sample is actually drawn. Ideally ,it is a complete and correct list of population members only
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Part II: STATISTICAL ANALYSIS
SAMPLE SIZE CALCULATION
Sample size (n)=Z2 x (pq) (E2) Here we take the confidence level as 65%. Corresponding to this confidence level, we get Z=0.927 from the Normal Distribution table From the pilot survey, p=0.8 p=sample proportion who are satisfied with services Thus, q=(1-p)=1-0.8=0.2 Taking the size of the sampling error as 0.05 (or 5%) n = 0.927 x 0.927 x 0.8 x 0.2 0.05 x 0.05 = 54.16 approximately 57 Thus the sample size of 57 was decided
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Part III: QUESTIONNAIRE
QUESTIONNAIRE FOR CUSTOMER: Please tick any one 1. How would you rate HDFC BANK services? Excellent Good Fair Poor
2. Please tick any one: (a) Handling of complaint calls Good Fair Poor
(b) Response time Soon Late
(c) Turn around time More Moderate Less
(d) You through your work in single visit? Yes No
(e) Knowledge of the personal banker? Good Fair
3. Do you find any gap between the services expected and services delivered? Yes No SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT
69
MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK If yes, then why? _________________________________________________
4. What is the overall level of satisfaction with HDFC bank services? Very high High Moderate Low
5. Improvements and suggestions ________________________________________________________________ ________________________________________________________________ EXTRA DETAILS:
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QUESTIONNAIRE FOR CUSTOMER:
1. Are you aware of the HDFC BANK Services? Yes No
2. Which one of the following factors influences you most while taking the decision? (Please tick the appropriate box as per your preference) A. Price B. service / Maintenance cost
3. Would you recommend BANKING with of HDFC BANK? Yes No
4. How do rate the experience with HDFC BANK service from the HDFC bank employee? Excellent Good Fair Poor If poor, why? _____________________________________________________
71
5. How do you rate the submission of service support Prompt Delayed
6. How do you rate the Maintenance cost charged by our company? High Moderate Low
7. Improvements and suggestions:
72

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MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK

Customer Satisfaction For the

SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT BHAVNAGAR UNIVERSITY BHAVNAGAR

SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT

MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK

HDFC BANK LTD."

SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT

MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK

SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT

MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK

SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT

MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK

SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT

MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK

INTRODUCTION OF BANKING INDUSTRY

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MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK

INTROUDCTION OF BANKING INDUSTRY

SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT

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SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT

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SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT

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INTRODUCTION OF HDFC BANK

SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT

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SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT

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Wholesale Banking Services:

Retail Banking Services:

SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT

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8.No. of branches: 761

9. No. of ATMs: 1977

SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT

MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK

SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT

MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK

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CUSTOMER SATISFACTION CONCEPTS

SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT

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SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT

MEASUREMENT OF CUSTOMER SATISFACTION AT HDFC BANK

SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT

SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT

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BY PRODUCT OF CUSTOMER SATISFACTION

SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT

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SWAMI SAHAJANAND COLLEGE OF COMMERCE & MANAGEMENT

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