A

Project Report on
Customer Satisfaction
Measurement
at

Submitted to Guru Nanak Dev

University
For the fulfillment of the degree of
Bachelor of
Commerce III [Professional]

Session 2009-10

Submitted To:-
Submitted By:-
 CERTIFICATE

This is to certify that the project report entitled “CUSTOMER

SATISFACTION MEASUREMENT” in HDFC BANK. is a bonafide
research of Nitin Sharma conducted by him at D.A.V. College,
Jalandhar under my guidance and supervision to fulfill the
requirements of the Degree of Bachelor Of Commerce (Professional) 3rd
Year.

Guide:
 Preface

As per the direction of our course structure, we the students of

B.Com (Prof.)-III have to undergo Summer Training for the period of 8
weeks with the different commercial enterprises of the country. I have
undergone training in HDFC Bank. I made a project on Customer
Satisfaction Measurement in HDFC Bank.

This report is a record of the training. The objective of the

project is to know about the services offered by the bank to its
customers and to know about the level of satisfaction of the
customers towards the bank services.
 ACKNOWLEDGEMENT 

There are competent and indefatigable lecturers and guides, who

bestow their fortune upon students, particularly in respective field.
Words are often too weak to express the inner feelings. I am really
thankful to my supervisor and guide Mr. ASHOK KAPOOR (Lect.
in Commerce Deptt.) for this guidance and full co-operation in
preparing each and every part of this report. Without his support
this report would have been a Dream. I am really honored working
with him.

I feel extremely pleased to our worthy Principal Dr. V.K. TIWARI

and our H.O.D. Mr. T.R. DHINGRA who sanctioned the authority
letter that helped me in joining HDFC Bank, Jalandhar.

I express my sentiments of gratitude and indebtness to branch

manager of HDFC Bank, to give me the opportunity to get summer
training.

Lastly, I am heartily thankful to all the persons who helped and

cooperated with me for completion of this report. Without their
help this report would not have been completed.
 STUDENT DECLARATION

This is to certify that I, Nitin Sharma of B.com. (Prof.)-III of D.A.V College, Jalandhar

have undergone Summer Training at HDFC Bank. Jalandhar and have prepared the

Project Report entitled "Customer Satisfaction Measurement". This is an original &

purely authentic work.

Date:
 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 bird’s 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 Jalandhar 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
BANK. are 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.
 Contents

- Introduction
- Customer Satisfaction Concepts
- Sampling Design
- Research Design
- Research Findings
- Research Analysis
- Customer Satisfaction
Measurement
- The road ahead
- Conclusions
- Appendices
INTRODUCTION

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

LIMITATIONS OF THE STUDY

 The customers’ study was conducted only in Jalandhar 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.
 CUSTOMER
SATISFACTION CONCEPTS

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
buyer’s 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

CUSTOMER SATISFACTION – NEED

 The age of mass production and mass distribution welcomed by most
customers and organizations, has had one negative consequence, it has
distanced those who produce goods and services from those who consume
them. In the era preceding mass distribution, producers found out very quickly
how satisfied or dissatisfied their customers were in the course of their frequent
and necessary interaction with their customer. This face-to-face interaction
reminded the producers’ daily of the sovereignty of customers. The feedbacks
were readily accepted from the customers and were adopted for making desired
changes to improve their services and improve customer satisfaction. So
customer satisfaction was a daily phenomenon.
Enter the era of mass distribution and the channels of distribution created
to disseminate products and services. This has resulted in distancing customers
from the producers by the distribution channels. Intermediary institutions
maintained this pipeline of products and services whose job was to move the
product or services from the producer to end customers. A natural reaction for
the producers was to give up or delegate responsibility for customers servicing,
depending on newly created intermediaries to look after customer’s satisfaction.
Delegating responsibilities was a bad idea in two respects: first, it eliminated
once and for all direct interaction with customers. Second, customer became a
missing component in the producers’ decision set.

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 another’s 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
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.
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.
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 message “,

there is nothing wrong in allowing a survey to serve both the informational and
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.
INFORMATION COMMUNICATION

IMAGE
HOW TO ACHIEVE CUSTOMER SATISFACTION?

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 doesn’t increases leading to dissatisfaction
IS CUSTOMER SATISFACTION MEASUREMENT STATIC?

As discussed earlier that there is always some between what is expected

and what is actually delivered, thus customer satisfaction measurement process
is dynamic and not static, thus it should be practiced on a continuous basis for
future improvements.
WHOSE RESPONSIBILTY IS TO MEASURE AND MANAGE CUSTOMER

SATISFACTION?

It’s 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 naïve 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.
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.

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….
SAMPLING DESIGN
 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 Jalandhar. 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.

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 Jalandhar 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 SECONDARY RESEARCH

(OPINION SURVEY) (INFORMATION SCANNING)

DATA SOURCE

FINDINGS

RECOMMENDATIONS
RESEARCH DESIGN
 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 got 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
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.

Study’s 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 Jalandhar. 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)
DATA COLLECTION:

Location:
Jalandhar 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.
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 January Feb Feb March
WEEKS
1-2 3-4 1-2 3-4 1-2
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).

Software’s used for the analysis:

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.
RESEARCH FINDINGS
 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 66
60 Excellent
40 26.4 Good
%

20 7.6 fair
0
1
rating

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.
 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 77.2
80 Good
60
Fair
%

40 21.9
20 1 poor
0
1
RATING

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.
 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
95.9
100 Soon
%

50 late
4.1
0
1
RATING

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 78
80 Less
60
Moderate
%

40 20.3
20 1.6 More
0
1
RATING

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
Good
50
%

Fair
0
1
RATING

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
96
100 1 Visit
%

50 more than 1 Visit

4
0
1
RATING

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.
 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
91.8
100
50 8.8
%

0 No
1 Yes

RATING

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.
 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 80.2

50 Yes
%

16.6
2.6
0 No
1 can't say

RATING

80.8%( majority) customers said that they recommend the HDFC BANK
SERVICES to others which is a very good response in company’s favor, 2.6%
customers said that they would not be recommending the company’s offering to
others whereas 16.5% customers were not in a position to decide whether they
would or wouldn’t recommend. Here is a scope for the company to turn this last
segment of the respondents to product recommending customer segment.
 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 81
80
60 Excellent
%

40 Good
11 5
20
0 fair
1 poor

RATING

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.
 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
67.8
70
60 High
50
moderate
40
30 24.2 low
20 can't say
10 4.39 3
0
1

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.
RESEARCH ANALYSIS
 RESEARCH ANALYSIS

Research analysis is shown with the help of cross-tabulation.

Recommending the product Vs. Experience at HDFC BANK BRANCH

Maintenance Charges Vs. Value for money prices
Maintenance Charges Vs. Recommending the services
Recommending the services Vs. Improvements recommended by
customer

The next four cross-tabulations are made depending upon service satisfaction.
Overall satisfaction Vs. Rating the services
Overall satisfaction Vs. Improvements given by the customers
Rating of services Vs. Improvements given by the customers
 CUSTOMER
SATISFACTION
MEASUREMENT
 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 BABILITY
OF RECOMMENDING PROBABILITY OF NOT SHIFTING

Secured customers = 55 x 100 / 118 = 46.61%

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

Tells? Refers? Buys

again?
Top rung Tells Refers Always,
everyone everyone returns to
about you proactively buy
Middle rung Tells a Refers a Sometimes
few few returns
people people
Lowest rung
May tell If asked, If
someone, may refer convenient,
if asked may buy

A customer is 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.
CONCLUSIONS

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
personnel’s who have helped us to complete this study successfully.
APPENDICES

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

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 statistician’s 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
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
 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
 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
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:
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? _____________________________________________________

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:

BIBLIOGRAPHY
 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