Consumer behavior analysis in selection of a bank Presentation Transcript

1. Behavior analysis of a consumer towards choosing a bank-:By:-WHIMSIC GROUPRahulJogi Ram UpadhyayRajkishanVinchhi Praveen DeoraPrakashDadawat 2. Flow of Presentation Banking & the origin of banks in India Banking structure in India Indian Banking Industry Consumer behavior & decision parameters Growth drivers Research Methodology Findings of the study Conclusion Recommendations1/17/20112IIPM, Ahmedabad 3. Banking & the origin of banks in IndiaBankingmeans "Accepting Deposits for the purpose of lending or Investment of deposits of money from the public, repayable on demand or otherwise and withdraw by cheque, draft or otherwise."-Banking Companies (Regulation) Act,1949 Originated during the rule of East India Company The General Bank of India, 1786Swadeshi movement - Punjab National Bank, Bank of India, Bank of Baroda, Canara Bank, and so on were the pioneers. Phase I, II & III1/17/20113IIPM, Ahmedabad 4. Banking Structure in IndiaSource: Trend & Progress Report of Banking in India, 2005-06, RBI1/17/20114IIPM, Ahmedabad 5. 1/17/2011IIPM, Ahmedabad5The Reserve Bank of India Established in the year 1935 under the RBI Act, 1934 Nationalized in the year 1949Preamble:"...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage.Current Focus: Supervision of financial institutions Consolidated accounting Legal issues in bank frauds Divergence in assessments of non-performing assets and Supervisory rating model for banks. 6. Indian Banking Industry Growing at a rapid pace Banking assets to reach US $1 trillion during 2010 Customer centric approach adoptedSource: www.tradingeconomics.com1/17/20116IIPM, Ahmedabad 7. Consumer behavior and decision parametersConsumer behavior: Consumer behavior is the study of when, why, how, and where people do or do not buy a product/service. It blends the elements of Psychology,Sociology &Economics.1/17/20117IIPM, Ahmedabad 8. Decision Parameters: What is needed? What will you do now? How will you do it? Is the decision worthy enough?1/17/20118IIPM, Ahmedabad 9. Porters 5 force Model1/17/20119IIPM, Ahmedabad 10. Growth DriversDemand BasedSupply BasedSustained economic liberalizationIncrease in banking servicesHeavy infrastructure investmentBanks transformed into advisory institutionsGrowing middle classCultural deposition more attuned to banksExtreme involvement of consumer in decision making.1/17/201110IIPM, Ahmedabad 11. Research MethodologyResearch Objectives: To understand the behavior of consumers while selecting a bank.Data Sources: a) Primary data Questionnaires b) Secondary data Journals, brochures of banks, internet and books.Sample Design: Area covered - Ahmedabad & Baroda.Time frame - 15 daysSample size - 1001/17/201111IIPM, Ahmedabad 12. Findings of the studyDecision aspects for selecting a bank: (Based on questionnaire) Rate of interest Convenience Easy loans Free checking options Online payment easy ATM gives deposit facility Overdraft protection plan Small business loans One-stop-shop1/17/201112IIPM, Ahmedabad 13. Data Analysis (Based on Questionnaires):1/17/201113IIPM, Ahmedabad