Professional Documents
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CON TEN TS
1. INTRODUCTION 2. COMPANY PROFILE 3. SERVICE QUALITY IN BANKS 4. RESEARCH OBJECTIVE 5. RESEARCH METHODOLOGY 6. DATA ANALYSIS 7. FINDINGS OF THE REPORT 8. CONCLUSION 9. RECOMMENDATIONS 10. BIBLIOGRAPHY 11. ANNEXURE: QUESTIONNAIRE
P AGE N O.
RESEARCH OBJECTIVE
The objective of the study is as follows: To examine the essential dimensions of service quality and its effect on customers
Satisfaction. To find out the level of perception of the customers from the service qua lity offered
by the banks. To know which service quality dimension of the bank is performing well. To identify which dimension of service quality needs improvement so that the quality
SCOPE OF STUDY
The scope of this research is to identify the service quality of bank. This research is based on primary data and secondary data. This study only focuses on the dimensions of service
quality. It aims to understand the skill of the company in the area of service quality that are performing well and shows those areas which require improvement. The study was done taking branche of CANARA bank into consideration. The survey was restricted to the
RESEARCH DESIGN
The research design is exploratory till identification of service quality parameters. Later it becomes descriptive when it comes to evaluating customer perception of service quality of the banks.
Descriptive research, also known as s tatis tica l research, describes data and characteristics about the pop ulat io n 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 ca usa l re la t io ns hip, where one variable affects another. In other words, descriptive research can be said to have a low requirement for inter na l va lid it y. The description is used for freq ue nc ies, a vera ges a nd other statistical calculations. O ften the best approach, prior to writing descriptive research, is to conduct a survey investigation. Q ua lita t ive researc h o ften 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.
RESEARCH SAMPLE
SAMPLING P LAN : Since it is not possible to study whole universe, it becomes necessary to take sample from the universe to know about its characteristics. Sampling Units: Customers of CANARA BANK Sample Technique: Random Sampling. Research Instrument: S structured Q questionnaire. Contact Method: Personal Interview.
SAMPLE SI ZE: The work is a case of CANARA BANK, one of the largest bank of Indian banking industry together representing over 25 per cent of the market share of Indian banking space. The survey was conducted in the city of Delhi with two branches of canara Bank, with 50 customers as respo nde nt.
Likert scaling is a bipolar sca ling me t hod, measuring either positive or negative response to a statement. The questionnaire consists of two parts. The first part consists of three questions concerning the demographic information of the respondent such as the name, age, educational qualifications and income. The second part consisting of 18 questions exploring the respondent s perception about the service quality of bank. For evaluation of service quality of canara bank
service quality dimension of reliability, assurance, tangibility, empathy and responsiveness is used in order to evaluate the actual service quality of canara bank.
RESEARCH LIMITATIONS
The study is only for the canara Bank co nfined to a particular location and a very small sample of respondents. Hence the findings cannot be treated as representative of the entire banking industry. The study can also not be ge ne ra lized for public and private sector banks of the country. Respondents may give biased answers for the required data. Some of the respondents did not like to respond. Respondents tried to escape some statements by simply answering neither agree nor disagree to most of the statements. This was one of the most important limitation faced, as it was difficult to analyse and come at a right conclusion. In our study we have included 50 customers of bank because of time limit.
DATA ANALYSIS
Ques. Age
AGE CATEGOR Y
FREQUENCY
PER CENTAGE
18-23 Years 24-29 Years 30-35 Years 35 Years and above TOTAL
10 17 15 8 50
20 34 30 16 100
20 54 84 100
Ag e
18-23 Years 24-29 Years 30-35 Years 35 Years and above
16%
20%
30% 34%
INTERPR ETATION From the table and graph above it can be seen that 20% respondents age are 18 to 23 years. 34% respondents age are 24 to 29 years.
30% respondents age are 30 to 35 years. 16% respondents age are 35 to above years.
CATEGOR Y
FREQUENCY
PER CENTAGE
13 20 17 50
26 40 34 100
26 66 100
Educational qualifications
34% 26 % UNDER GRADUATE 40 % GRADUATE POST GRADUATE
INTERPR ETATION From the table and graph above it can be seen that 26% respondents are Under graduate.
SCALE
FREQUENCY
PER CENTAGE
5 25 16 4 50
10 50 32 8 100
10 60 92 100
INTERPR ETATION CANARA bank has modern- looking and hi- tech equipments. Here analysis show that most of the respondents disagreed with this statement. Among the total respondents 50% disagreed, 32% were neutral and 8% agreed. After analysis I found tha t majority of the respondents think that CANARA Bank do not have modern looking equipments or no hitech equipments.
SCALE
4 29 17 50
8 58 34 100
8 66 100
30 25 20 15 10 5 0 DISAGREE 4
29
17
UNCERTAIN
AGREE
INTERPR ETATION CANARA banks physical facilities are visually appealing. F rom this statement I found that 17 persons agreed. 29 persons were uncertain and 4 persons disagreed. This means 58% people were uncertain about this statement. Out of the total respondents only 4% disagreed and no one strongly agreed or disagreed with the statement. 17% people agreed that CANARA banks physical facilities are visually appealing.
Ques.3 The bank's reception desk emp loyees are neat appearing.
SCALE
5 21 18 6 50
10 42 36 12 100
10 52 88 100
STRONGLY AGREE
AGREE
18
UNCERTAIN
21
DISAGREE
10
15
20
25
INTERPR ETATION Canara banks employees appear neat. Here analysis shows that majority were neutral. Among the total respondent 21 respondents were neutral, 18 people agreed and 6 respondents strongly agreed. The rest disagreed. From analysis I found that some respondents agreed with this statement but most of the respondents think the employees of the Canara bank appear neat.
Ques.4 Materials associated with the service (such as pamphlets or statements) are SCALE FREQUENCY PER CENTAGE CUMULATIVE PER CENTAGE DISAGREE UNCER TAIN visually 7 22 14 44 14 58
Materials associated with the services are visually appealling at the ban k
50% 14 % 44 %
36%
6%
STRONG LY AGREE
INTERPR ETATION Materials associated with the service are visually appealing atcanara bank. Here 36 % respondents agreed with this statement and 6% strongly agreed with this statement. 44% were neutral that is most and 14% disagreed. There was no respondent who strongly disagreed. Hence, in general it can be concluded that materials associated with the services such as pamphlets or statements are visually appealing.
Ques.5 When the bank promises to do something by a certain time, it does so.
SCALE
FREQUENCY
2 26 5 14 3 50
4 52 10 28 6 100
4 56 66 94 100
3 14 5 26
10
15
20
25
30
INTERPR ETATION My sample size was 50. Here analysis shows that among the total respondents 26 respondents disagreed and 14 respondents agreed with this question. Also I found that 5 people were neutral and 2 people strongly disagreed. Hence I concluded that majority of them disagreed that the bank when promises to do something by certain time, it does so.
Ques. 6 When you have a problem, the bank shows a sincere interest in solving it
SCALE
3 14 26 7 50
6 28 52 14 100
6 34 86 100
INTERPR ETATION When you have a problem, canara bank shows sincere interest in solving it. After analysing this statement I found that most of the respondents agreed i.e. 52% respondents agreed. Also I found that 28% were neutral with this statement and 6% were committed with disagree. There was no one who strongly disagreed. Hence canara bank can be said to be reliable.
Ques.7 The bank performs the service right the first time.
SCALE
FREQUENCY
2 8 17 17 6 50
4 16 34 34 12 100
4 20 54 88 100
17
AGREE
STRONGLY AGREE
INTERPR ETATION Total sample size was 50. Here analysis shows that among the total respondents 17 people agreed with this statement. They think that canara bank performs the services right the first time. 6 people strongly agreed with this statement. Also 17 people were neutral and the rest of the respondents disagreed and strongly disagreed.
SCALE
5 10 23
10 20 46
10 30 76
12 50
24 100
100
AGRE E 46 %
INTERPR ETATION Bank insists on error free records. canara bank has proved from my analysis that it surely insist on error free records as 46% respondents agreed with this statement and 24% strongly agreed. Only 10% respondents disagreed and no one strongly disagreed.
Ques. 9 Employees in the bank tell you exactly when the services will be performed .
SCALE
FREQUENCY
6 8 13 18 5 50
12 16 26 36 10 100
12 28 54 90 100
5 18 13 8 6
INTERPR ETATION Employees in the bank tell you exactly when the services will be performed. Majority of the respondents agreed with this statement. 26% respondents were uncertain. At the same time 16% disagreed and 12% Strongly disagreed with this statement.
SCALE
5 16 27 2 50
10 32 54 4 100
10 42 96 100
30 20 10 0 DISAGREE UNCERTA IN 5 16
27
2 AGRE E
STRONGLY AGREE
INTERPR ETATION Most of the respondents agreed with this statement. According to my analysis, employees in canara Bank give prompt service. Among the total respondents agreed respondents were 27 and strongly agreed were 2. 16 people were neutral and 5 disagreed. There was no respondent who strongly disagreed with this statement.
SCALE
12 29 9 50
24 58 18 100
24 82 100
12 9
UNCERTAIN
AGREE
STRONGLY AGREE
INTERPR ETATION Employees in canara bank are willing to help you. With this statement no one disagreed or strongly disagreed. Strongly agreed were 9 people i.e. 18% respondents strongly agreed, 29 people agreed i.e. 58% respondents agreed and 24% respondents were neutral.
Ques.12 Employees in the ba nk are never too busy to respond to your request.
SCALE
1 11 27 11 50
2 22 54 22 100
2 24 78 100
11 27 11
10
15
20
25
30
INTERPR ETATION Employees in canara Bank ltd are never too busy to respond to your request. After analyzing this statement I found that most of the respondents agreed with this statement. Among the total respondents 22% strongly agreed and 54% agreed. 11 respondents were neutral and 1 respondent disagreed. No one strongly disagreed.
SCALE
4 13 28 5 50
8 26 56 10 100
8 34 90 100
INTERPR ETATION The employees of the bank are trustworthy. According to my findings, 54% respondents agreed that employees at canara bank are trustworthy. 13% respondents were neutral and 4% respondents disagreed with this statement.
SCALE
28 4 13 5 50
56 8 26 10 100
56 64 90 100
30 20 10 0
28
13 4 5 DISAGREE UNCERTA IN
AGRE E
STRONGLY AGREE
INTERPR ETATION The behavior of employees in canara bank instills confidence in you. Here analysis shows that most of the people disagreed. Among the total respondents 28 respondents disagreed, 13 agreed and 5 strongly agreed. There was no respondent who strongly disagreed. This means 56% respondent disagreed with this statement.
Ques.15 You feel safe in your transactions with the bank. UNCER TAIN AGREE STRONGLY AGREE TOTAL 16 23 6 50 32 46 12 100 42 88 100
12%
10%
32% 46%
INTERPR ETATION With this statement most of the respondents agreed. Among the total respondents 23 agreed with this statement and 6 strongly agreed. 32% respondents were neutral and 10% respondents disagreed. But there no one who strongly disagreed.
Ques.16 Employees in the bank have the knowledge to answer your questions.
SCALE
2 9 26 13 50
4 18 52 26 100
4 22 74 100
13 26
INTERPR ETATION From my analysis I found that 54% respondents agreed that employees of HDFC bank have complete knowledge to answer their questions. 26% respondents strongly agreed to this statement and only 4% disagreed. 18% neither agreed nor disagreed.
SCALE
26 12 10 2 50
52 24 20 4 100
52 76 96 100
12 10
STRONGLY AGREE
INTERPR ETATION canara bank is not able to give individual attention to its customers as out of the total respondents 54% disagreed with this statement. 12% of the respondents were neutral and only 12% agreed and 2% strongly agreed. From this finding it can be concluded that it is unable to give individual attention to its customers.
Ques.18 The bank has operating hours convenient to all its customers.
SCALE
2 14 27 7 50
4 28 54 14 100
4 32 86 100
10
15
20
25
30
INTERPR ETATION canara bank has operating hours convenient to all its customers. Out of 50 respondents, 27 respondents agreed with this statement and only 2 respondents disagreed. Also 7 respondents strongly agreed that the bank has operating hours convenient to its customers.
SCALE
FREQUENCY
3 5 10 25 7 50
6 10 20 50 14 100
6 16 36 86 100
30 25 20 10 0
STRONG LY DISAGREE
10 7
DISAGREE UNCERTAIN
AGRE E
STRONG LY AGRE E
INTERPR ETATION canara bank has your best interests at heart. Here analysis shows that 25 respondents agreed and 7 respondents strongly agreed with this statement. 20% were neutral and the rest disagreed and strongly disagreed.
SCALE
5 21 20 4 50
10 42 40 8 100
10 52 92 100
21
20
DISAGREE
UNCERTAIN
AGREE
STRONGLY AGREE
INTERPR EATION Employees of canara bank understand specific needs. With this statement most of the respondents were neutral. Among the total respondents 20 respondents agreed and 4 respondents strongly agreed. 5 respondents disagreed with this statement.
Sum the score for each dimension of service quality to obtain a final score which tells which
dimension is performing well and which dimension needs improvement. The scores are shown in the following table: Statement 1. canara bank has modern looking equipment. 2. The bank s physical features are visually appealing. 3. The bank s reception desk employees are neat appearing. 4. Materials associated with the service (such as pamphlets or statements) are visually appealing at the bank. 5. When the bank promises to do something by a certain time, it does so. 6. When you have a problem, the bank shows a sincere interest in solving it. 7. The bank performs the service right the first time. 8. The bank insists on error free records. 2 4 3.5 4 Score 2 3 3 3
9. Employees in the bank tell you exactly when the services will be performed. 4 10. Employees in the bank give you prompt service. 11. Employees in the bank are always willing to help you. 12. Employees in the bank are never too busy to respond to your request. 13. The employees of the bank are trustworthy. 14. The behavior of employees in the bank instills confidence in you. 15. You feel safe in your transactions with the bank. 16. Employees in the bank have the knowledge to answer your questions. 17. The bank gives you individual attention. 18. The bank has operating hours convenient to all its customers. 4 4 4 4 2 4 4 2 4
Statement 19. The bank has your best interests at heart. 20. The employees of the bank understand your specific needs.
Score 4 3
The scores for each dimension are summed up and a final score is obtained:
SERVICE QUALITY DIMENSION 1. TANGIBILITY (1 TO 4) 2. RELIABILITY (5 TO 8) 3. RESPONSIVENESS (9 TO 12) 4. ASSURANCE (13 TO 16) 5. EMPATHY (17 TO 20)
Points 11 13.5 16 14 13
tangibility. Still the score is low. For most services, customer s perceptions of whether the service has been performed correctly, and not provider-established criteria, are the major determinants of reliability. C ustomers of the bank hesitate to rely on the bank. Whenever they have a problem, the bank shows sincere interest in solving it but the services are not performed by a certain time as promised. The employees should take this proble m seriously and take steps to remove this. As score for Assurance is at second place after responsiveness, so the customers
of HDFC bank are very confident and feel safe while transacting with the bank. Moreover the employees of the bank have proved to be trustworthy. Employees are also educated enough to answer all the questions. The score of Tangibility dimension of service quality of canara bank is the lowest.
The service quality factor tangible is defined by whether the physical facilities and materials associated with the service are visually appealing at the bank. These are all factors that customers notice before or upon entering the bank. C ustomer expectations regarding visual appealing of canara is very high. F rom my study I found that P hysical facilities and modern looking equipment are not sufficient in canara bank. Respondents were uncertain about the neat appearance of the reception desk employees. So they should work on that and try to fulfill the gap. According to my findings, the score of Empathy is not satisfactory but not unsatisfactory also. canara bank is unable to give individual attention to its customers and is unable to
understand specific needs of its customers. But still bank has taken steps to satisfy its customers by keeping operating hours convenient to its customers and keeping their interest best at heart. In canara bank, the score of Responsiveness is highest so they are focusing on prompt
service, employees are willing to help the customers and say the exact time when the services will be performed. Employees at bank give their customers first preference and are always ready to help them. O verall canara banks responsiveness dimension of service quality is the highest. According to the customer perception, canara bank is highly responsive. Customers
are assured while transacting with the bank. The reliability dimension is lower than the first to dimension. They feel that the bank is unable to give them individual attention and its equipments are not modern and sufficient for the bank. There is not much gap between all the dimensions, this shows that CANARA BANK
is a better service provider in all the dimensions i.e. reliability, assurance, tangibility, responsiveness and empathy. As a result of which, the customers are satisfied with the service offered by canara bank.
CONCLUSION
Based on the study conducted it can be concluded that responsiveness, assurance and reliability are the critical dimensions of service quality of canara bank and they are directly related to overall service quality. The factors that may delight customers tend to be concerned more with the intangible nature of the service, commitment, attentiveness, friendliness, care, and courtesy. The employees give prompt services, always are ready to answer the questions and are trustworthy. The main sources of dissatisfaction appear to be cleanliness, up to date technology modern equipments, and neatly dressed up employees. The Tangibility dimension of service quality of canara bank is highly disappointing and serious steps are needed to be taken to enhance this dimensio n. C ustomers of the bank are dissatisfied with the empathy dimension. To satisfy these customers, the management can take some attempts, noted earlier as recommendations. The study brings about the areas which require urgent attention of the employees, the management, and the policy makers of the industry. These are areas in which customers are hugely d iss at is fied with the services of the banks against their expectation. This high degree of dissatisfaction resulting from the services received clearly questions the design of services or subsequent response of the bank employees. These limitations are too serious to be avoided as these question the front- line people dealing with the customers and the approach of the management in taking customers seriously. The management should understand the benefits of service quality. It include increased customer satisfaction, improved customer retention, positive word of mo uth, reduced staff turnover, decreased ope rat ing cost s, enlarged market share, increased profitability, and improved financial
performance. In the days of intense competition, superior service is the only differentiator left before the banks to attract, retain and partner with the customers. S uperior service quality enables a firm to differentiate itself from its competition, gain a sustainable competitive advantage, and enhance efficiency. Thus, improving service quality leads to the customer satisfaction and, ultimately, to customer loyalty.
RECOMMENDATIONS
Reliability is an obvious place to start. C ustomers of the bank want to know their
resources are safe and within trustworthy institutions. A way to ensure this peace of mind would be to take steps to ensure bank employees are well trained, so each bank associate is able to offer complete and comprehensive information at all times. Consistent policies combined with a knowledgeable staff will foster a high degree of institutional cohesion and reliability. Responsiveness, again when associated with a well-trained staff and timely answers
to service-related questions, would make significant inroads into causing canara bank be regarded as responsive. Staff should be encouraged to present relevant options to banking customers in a manner that does not resemble salesmanship so much as a desire to serve. Intangibles please customers just as much as tangibles in the banking industry. People
tend to visit the same branch of a bank over and over again. Usually, this is a location close to their home or their workplace. It is natural that customers become comfortable and habituated to these branch banks, for the same reason they develop familia rity with a neighborhood supermarket or convenience store. It makes sense that bank employees would be encouraged to learn to recognize these regular customers, learn their names, and begin to identify their basic service requirements. Learning to understa nd customers needs will allow bank associates to offer
enhanced services, perhaps lowering customers banking costs and increasing their investment potential. This could also open up the possibility of increased profits for banks, for when perceived as mo re service and customer oriented, they will, in effect, become a useful and pleasant way to shop. Keeping the bank with up-to-date technologically are important factors. Modern
equipments, new improved technology should be replaced with the old ones. If the staff inside is pleasant and well- informed, in an aesthetically pleasing environment, then customer satisfaction will be high. The five-dimensional structure could possibly serve as a meaningful framework for
tracking a banks service quality performance over time and comparing it against the performance of competitors. Items on some dimensions should be expanded if that is necessary for reliability. Thus, the banking industries must continuously measure and improve these dimensions
BIBLIOGRAPHY
Re fe re nces Kotler P hilip, marketing management, (Pearson education, 12 th edition) Malhotra K. Naresh, marketing research (An applied orientation), Research design, (Prentice hall of India pvt. 5th edition) Zeithmal V. A., Grembler D.D., Bitner M.j., and Pandit A.: Service Marketing Integrated customer Focus across the F irm (4th Edition) M.K. Rampal : Service Marketing Webs ite s www. goo gle.co m ww w. hd fcba nk.co m ww w. hd fc ind ia.co m www.wik iped ia.or g www. ma rketr esearc h. co m
ANNEXURE QUESTIONNAIRE
Respected S ir/Madam I am student of SIVA SIVANI INSTITUTE OF MANAGEMEN T, conducting a survey on S ERVIC E QUALITY OF CANARA BANK . The following statements relate to your feelings about the canara bank. P lease show the extent to which you believe canara bank has the feature described in the statement. I request you to the option which in your opinion are believed to be true. All data will be kept confidential. Name: Age: Educational Q ualifications:
Strongly Disagree Disagree Neither agree Nor disagree Agree Strongly Agree
1. canara bank has modern looking equipment. 2. The bank's physical features are visually appealing. 3. The bank's reception desk employees are neat appearing. 4. Materials associated with the service (such as pamphlets or statements) are visually appealing at the bank. 5. When the bank promises to do something by a certain time, it does so. 6. When you have a problem, the bank shows a sincere interest in solving it.
Disagree
Agree
Strongly
7. The bank performs the service right the first time. 8. The bank insists on error free records. 9. Employees in the bank tell you exactly when the services will be perfo rmed. 10. Employees in the bank give you prompt service. 11. Employees in the bank are always willing to help you. 12. Employees in the bank are never too busy to respond to your request. 13. The employees of the bank are trustworthy. 14. The behavior of employees in the bank instills confidence in you. 15. You feel safe in your transactions with the bank. 16. Employees in the bank have the knowledge to answe your questions. 17. The bank gives you individual attention. 18. The bank has operating hours convenient to all its customers. 19. The bank has your best interests at heart. 20. The employees of the bank understand your specific needs. r