CONTENTS

PAGE NO. LIST OF TABLE LIST OF FIGURES EXECUTIVE SUMMARY CHAPTER 1 INTRODUCTION 1.1 A GLIMPSE OF INDIAN BANKING SECTOR 1.2 A PROFILE OF BANK OF BARODA 1.2.1 HISTORY AND MISSION STATEMENT 1.2.2 PRESENT PROFILE OF THE BANK 1.2.3 CORPORATE SOCIAL RESPONSIBILITY (CSR) 1.2.4 TECHNOLOGY- HI-TECH SERVICES OF THE BANK (i) CORE BANKING SOLUTION (CBS) (ii) INTERNET BANKING (iii) PHONE BANKING (iv) RTGS/NEFT 1.2.5 MARKETING 1.3 BANK OF BARODA PRODUCTS AND SERVICES 1.3.1 PERSONAL BANKING SERVICES 1.3.2 BUSINESS BANKING SERVICES 1.3.3 CORPORATE BANKING SERVICES 1.3.4 RURAL BANKING SERVICES 1.3.5 TREASURY OPERATION 13 14 14 14-15 15 11 11 11 12 12 9 9-11 11 8 4 4-5 6-7

[1]

PAGE NO. CHAPTER 2 INTRODUCTION TO THE TOPIC 2.1 WHAT IS THIS PROJECT ABOUT 2.2 DEFINING GENERATION NEXT 2.3 GENERATION NEXT BANKING 16 16-17 17 17

2.4 GEN-NEXT PRODUCTS AND SERVICES OF BANK OF BARODA I) GEN-NEXT JUNIOR (SAVINGS ACCOUNT) II) GEN-NEXT LIFESTYLE III) GEN-NEXT POWER (OVERDRAFT FACILITY) IV) GEN-NEXT SUVIDHA CHAPTER 3 - RESEARCH PROBLEM CHAPTER 4 - RESEARCH OBJECTIVE CHAPTER 5 RESEARCH METHODOLOGY 5.1 SAMPLE DESIGN 5.2 SAMPLE SIZE 5.3 SAMPLING TECHNIQUE 5.4 PRIMARY DATA 5.5 SECONDARY DATA 5.6 STATISTICAL TOOLS 5.7 LIMITATIONS OF THE RESEARCH CHAPTER 6 - ANALYSIS OF DATA 6.1 CUSTOMER PROFILE 6.2 PARAMETERS FOR CHOOSING A BANK 6.3 PROCESS OF CHOOSING A BANK 25 25 25 26 18 18 19

19-20 20-23 24

26-27 27 27

28-32 33 34

6.4 EVALUATING CERTAIN BEHAVIOUR OF BANKS CUSTOMER 35-39 6.5 CUSTOMERS AWARENESS LEVEL 6.6 CUSTOMERS IMAGE OF BANK OF BARODA
[2]

39-41 42

PAGE NO. 6.6 SATISFACTION LEVEL OF CUSTOMERS CHAPTER 7 FINDINGS CHAPTER 8 - CONCLUSIONS AND SUGGESTIONS BIBLIOGRAPHY ANNEXURE I: QUESTIONNAIRE ANNEXURE II: TARGET GEN-NEXT: A photograph of a lounge in GenNext branch in Pune 43-52 53 54-55 56

[3]

LIST OF TABLES
Page No. Table 1 Customer profile Table 2 - Satisfaction from Services Rendered 28 43

LIST OF FIGURES
Figure 6.1-Customer profile Age Figure 6.2-Customer profile Age Figure 6.3-Customer profile Gender Figure 6.4-Customer profile Education Figure 6.5-Customer profile Occupation Figure 6.6-Reasons for opening account Figure 6.7-Others advised to open account in Bank of Baroda for customer aged below 30 years Figure 6.8-Customers aged below 30 years Having parents account in Bank of Baroda Figure 6.9-Like to have internet banking Customers between age 18-25 years1 Figure 6.10-Customers preferred way of registering complain with the Bank of Baroda Figure 6.11-How the customers like to be treated in the bank by bank employees Figure 6.12-Customer used Debit card for shopping Figure 6.13-Customers visited or compared different banks before opening account Figure 6.14-Bank account in other banks of customers aged above 29 years Figure 6.15-Customers aged below 30 years having second account in other banks Figure 6.16-Customers aged between 18-21 years having another account in some other banks Figure 6.17-Customers aged between 22-29 years having another account in some other banks Figure 6.18-Advertisement awareness Figure 6.19-Product and service awareness 29 30 31 31 32 33 34 34 35 36 37 37 38 38 39 39 40 40 41

[4]

Figure 6.20-Image of Bank of Baroda compared to other Public Sector Banks in terms of service quality Figure 6.21-Satisfaction level with service of Bank of Baroda Figure 6.22-Satisfaction level of customers aged between 18-25years Figure 6.23-Satisfaction level of customers aged between 26-29 years Figure 6.24-Satisfaction level of customers aged above 29 years Figure 6.25-Customer views on quick service from employees Figure 6.26-Views of customers aged between 18-25 years on quick service from employees Figure 6.27-Views of customers aged between 26-29 years on quick service from employees Figure 6.28-Views of customers aged between 18-25 years on quick service from employees Figure 6.29-Views of customer aged between 18-25 on Polite Behaviour of employees Figure 6.30- Age 18-25 years - Importance of Air conditioning Figure 6.31- Age 18-25 years- Customer views on Air conditioning in Bank of Baroda Figure 6.32- Age 26-29 years - Importance of Air conditioning Figure 6.33- Age 26-29 years- Customer views on Air conditioning in Bank of Baroda Figure 6.34 - Age 18-25 years - Importance of Visually appealing office interior 42 44 45 46 47 47 48 48 49 49 51 51 51 51 52

Figure 6.35- Age 18-25 years- Customer viewsd on visually appealing office interior in Bank of Baroda Figure 6.36 Age 26-29 years - Importance of Visually appealing office interior 52 52

Figure 6.37 Age 26-29 years-Customer viewsd on visually appealing office interior in Bank of Baroda 52

[5]

EXECUTIVE SUMMARY
A survey of 61 customers of Bank of Baroda was completed during the months of May and June 2009. The survey involved the use of a structured questionnaire administered by personal contact to randomly selected customers of Bank of Baroda. The questionnaire was pretested to assure the completeness and accuracy of responses. 95 percent of customers responded that nearness to office/home was one of the reasons for opening account in Bank of Baroda. Customers aged below 30 years, 25 customers or 63 percent of customers said that others have recommended them to open account in Bank of Baroda. Customers aged below 30 years, 12 customers or 30 percent customers said that their parents have account in Bank of Baroda. Customers aged between 1825 years, 17 or 71 percent responded they like to have internet banking facility in future. 89 percent customers said they would visit the bank to register complaint, while 6 percent customer choose other options for complaining viz. Write complaint online and Call customer care. 46 percent customers said they like to be treated in a totally professional manner by the bank employee, while 54 percent of customers said they like to be treated in a friendly manner. Customers aged below 35 years having ATM-cum-Debit card, 39 percent customers said that they have used Debit card for shopping or buying railway/airline ticket. No customer visited or compared different banks before opening bank account. Customers having a second account in some other bank- aged above 29 years(57 percent), below 30 years(45percent), between age 18-21 years (17percent), between 22-29 years(47 percent)

[6]

Advertisement awareness- 90 percent customers responded negatively. Awareness about banks product and services-less than 80 percent. 77 percent viewed Bank of Baroda service quality better than other Public Sector Banks, 23 percent customers viewed Bank of Baroda service quality same as other Public Sector Banks.

57 percent customers responded they were fairly well satisfied, 26 percent responded that they were very satisfied, 15 percent said they were completely satisfied, 2 percent customer said they were somewhat dissatisfied.

Customer views on quick service from employees - 51 percent customers rated Very Good, 36 percent customers rated Fair and 13 percent customers rated Poor.

Polite Behaviour of employees - 72 percent customers rate Very Good, 12 percent rate Fair, 11 percent rate Poor and 5 percent customers rate Excellent.

[7]

CHAPTER 1
INTRODUCTION
1.1 A GLIMPSE OF INDIAN BANKING SECTOR
In India, Banking Regulation Act, 1949, streamlines the functioning and activities of commercial banks. Reserve Bank of India is vested with extensive powers for the supervision of banking in India as the Central Banking Authority. As per Section 5(c) of Banking Regulation Act, 1949, a Banking Company means any company which transacts the business of banking in India. As per Section 5(b) of Banking Regulation Act 1949, banking means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw able by cheque, draft, order or otherwise. At present there are 79 banks in India (excluding cooperative banks and regional rural banks) which include eight State Bank of India and its Associates, twenty Nationalised Banks, twenty three Scheduled Commercial Banks and twenty eight Foreign Banks. Contrary to the nationalization of banks in 1969 and 1980 so that banking could be available to the masses, in the present scenario Government is slowly opening up the banking sector for setting up of private banks and allowing foreign banks to set up wholly owned subsidiaries and to set up branches in rural India. Now foreign banks could buy up to 74% shares of a private bank. These changes are brought about so that Indian banking industry could have new technologies and efficient service practices of international standard.

[8]

1.2 A PROFILE OF BANK OF BARODA

1.2.1 HISTORY AND MISSION STATEMENT

Bank of Baroda Limited was registered on 20th July 1908 under the Baroda Companies Act of 1897. It was nationalized on 19th July 1969. It has seen the political, socio-economic, and technological changes of India and contributed to the economy of India for more than 100 years. Banks mission statement is To be a top ranking National Bank of International Standards committed to augmenting stake holders' value through concern, care and competence.

1.2.2 PRESENT PROFILE OF THE BANK

Bank of Baroda (BOB), among Indias top five largest bank and prominent among the global top 300, has a centurys financial experience backing it. With assets in excess of Rs 2,27,406 Cr, the bank has a network of 2,956 branches which include 2,884 Indian branches and 72 foreign branches and about 700 ATMs. Bank of Baroda offers a wide range of banking products and financial services to 29 million global corporate and retail customers, through various delivery channels, its specialized subsidiaries and affiliates in the areas of investment banking, credit cards and asset management. Today, Bank of Baroda has international presence across 5 continents, with a network of 74 offices overseas in 25 countries, including branches of the bank, its subsidiaries and the representative offices. The bank also has a joint venture in Zambia with 11 branches. (Bank of Baroda Annual Report 2008-2009) The Govt. Of India has 54% stake in Bank of Baroda. The total Staff strength of the bank is 36,838. The level of Banks Net Profit at Rs 2,227.20 crore for the year 2008-09 reflected a year-on-year growth of 55.2%. During 2008-09, the Banks overseas business grew by 46.3%. The bank's international operations today contribute around 20% to its global business and well as over 20% to its net profits. Growing its presence across new geographies and strengthening its equity in existing
[9]

markets, Bank of Baroda is on the path to establish itself round the clock around the globe. The bank is exploring out-of-the-box means to identify novel ways to tailor its growing repertoire of products and services to meet segment-specific requirements across geographies. Automation-led process and cost optimization, orchestration of the offices network help the bank achieve its ambitious goals. Bank of Barodas equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited. Bank of Baroda, which is the top bank in the group, has following 14 subsidiaries both domestic and foreign: Subsidiary (Domestic) : a) Banking : i. Nainital Bank Limited b) Non Banking : ii. BOBCARDS Limited iii. BOB Capital Market Limited iv.BOB Asset Management Co. Ltd. Subsidiary (Foreign) : a) Banking : v. Bank of Baroda (Uganda) Ltd. vi. Bank of Baroda (Kenya) Ltd. vii. Bank of Baroda (Guyana) Inc. viii. Bank of Baroda (Botswana) Ltd. ix. Bank of Baroda (Tanzania) Ltd. x. Bank of Baroda (Trinidad & Tobago) Ltd. xi. Bank of Baroda (Ghana) Ltd. xii. Bank of Baroda (Hong Kong) Ltd. b) Non Banking : xiii) Bank of Baroda (U.K.) Ltd. xiv) Baroda (New Zealand) Ltd. Bank of Baroda also has five Associate Regional Rural Banks (RRBs): Share i) Jhabua Dhar Kshetriya Gramin Bank ii) Nainital Almora Kshetriya Gramin Bank
[10]

35.00% 35.00%

iii) Baroda Gujarat Kshetriya Gramin Bank iv) Baroda Rajasthan Gramin Bank v) Baroda Uttar Pradesh Gramin Bank

35.00% 35.00% 35.00%

1.2.3 CORPORATE SOCIAL RESPONSIBILITY (CSR)

The Bank has vision to empower the community through socio-economic development of under privileged and weaker sections. Most of the Banks social activities are linked to rural masses . The bank has adopted 101 villages across India for their all-around development and providing financial assistance for development of infrastructure facilities.

1.2.4 TECHNOLOGY - HI-TECH SERVICES OF THE BANK (i) Core Banking Solution (CBS): As of 31st March 2009, 1,922 branches and 28 Extension
Counters in India are on Finacle CBS. This covers 94% of Banks domestic business. Additionally, 43 branches in 12 overseas countries and 23 branches in 7 overseas subsidiaries are on Finacle CBS.

(ii) Internet Banking: The Bank has launched full-fledged transaction-enabled Internet Banking
in India, for both Retail and Corporate customers. Through this platform, customers have the facility to pay both Direct and Indirect Taxes online, make payment of utility bills and also book rail tickets. Customers can transfer funds from one account to another account within the Bank. Customers can also avail of the services for inter-bank transfer of funds through Internet Banking using NEFT/RTGS. Corporates also have the facility of direct salary uploads. The internet banking customers in India are also provided SMS alerts facility.

(iii) Phone Banking: The Bank has recently launched one more delivery channel, Phone
Banking facility, for its customers. This facility enables customers to get Banks products information, enquire balances in their account, status of cheques, order statement of account through fax or e-mail etc.

[11]

(iv) RTGS/NEFT: Real Time Gross Settlement (RTGS) system is a funds transfer mechanism
where transfer of money takes place from one bank to another on a "real time" and on "gross" basis. This is the fastest possible money transfer system through the banking channel. National Electronic Fund Transfer (NEFT) is also an electronic fund transfer system that operate on a deferred net settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes place at a particular point of time. All transactions are held up till that time. All CBS branches of the Bank are enabled for inter bank remittances through RTGS and NEFT. RTGS and NEFT have also been interfaced with the internet banking portal. This gives bank customers the facility of making inter bank money transfers online using internet banking.

1.2.5 MARKETING
The bank organizes regular sales campaigns to promote various products of the Bank especially Current Account, Saving Account, and other retail business. The Bank focuses on promotion of popular products and schemes as well as concepts through sustained coverage in print, out-of-home media and industry presentations etc. Like in year 2009 the Bank started a separate page on SME in Economic Times to promote customized products and services for SME business segment. The Bank was awarded Leading Public Sector Bank in Global Business Development category by Dun & Bradstreet Banking Awards and MIDAS Awards, New York for Marketing Effectiveness.

[12]

1.3 BANK OF BARODA PRODUCTS AND SERVICES

1.3.1 PERSONAL BANKING SERVICES
i) Deposit Products and Services: There are three Deposit plans Fixed, Current and Savings. Fixed deposits are categorized into deposits with a term period of less than 12 months, more than 12 months and recurring deposits. ii) Retail Loan Products: The bank has various loans for different needs of the retail customers. Bank has recently started a new concept of Retail Loan Factory to speed up loan processing. For this the bank has opened exclusive branches whose function is to only provide loans, these branches do not provide deposit services. iii) Gen Next Product and Services: The bank has special kind of products called as GenNext products which is targeted at the youth. [More information about GenNext products and services is provided in Section 2.4] iv) Other Products and Services: The bank also provides other products and services to customers across large number of CBS branches. These are Credit card, Debit card, Lockers, Demat, BarodaHealth" (Mediclaim Insurance Policy), Express remittance facility, Electronic Clearing Services (ECS), Public Provident Fund (PPF)Scheme, Senior Citizens Savings Scheme (SCSS 2004), Govt. of India 8% Savings Bonds, Pension Payment, Collection of Central/State Taxes, etc.

[13]

1.3.2 BUSINESS BANKING SERVICES

The bank has various products and services targeting the small and medium business enterprises (SMEs), Small Scale Industries (SSI) and Ancillary Units, Professionals and Self Employed, Proprietorships, Partnership firms and Co-op societies. These are Fixed Deposit, Current Deposit, Working Capital Finance, Term Finance, etc.

1.3.3 CORPORATE BANKING SERVICES

The bank provides Wholesale banking service to Large & Mid Corporates. Companies having annual sales turnover of over Rs. 500 crore are classified as Large Corporate and those having annual sales turnover between Rs 100 crore to 500 crore are classified as Mid Corporate. The products and services provided are Fixed Deposit, Current Deposit, Working Capital Finance, Short Term Corporate Loans, Project Finance, Infrastructure Finance, Cash Management, Merchant Banking, etc.

1.3.4 RURAL BANKING SERVICES

The bank has products and services for small and marginal farmers, agricultural labourers and cottage industry entrepreneurs. The bank has Baroda General Credit Card Scheme for the citizens belonging to the rural and semi-urban parts of India, sustained employment to educated unemployed youth under Pradhan Mantri Rojgar Yojna (PMRY), various loans for farmers and rural customers, etc.

1.3.5 TREASURY OPERATION

The bank through its large network of authorized branches caters to the foreign exchange needs of its clientele engaged in export and import trade. The bank provides updated exchange rate of popular currencies around the globe like Dollar, Pound, Yen, Yuan, etc. The services to the customers of the

[14]

Bank include hedging of foreign currency risks by providing forward covers and various derivatives product. The bank offers the customers opportunities to invest in Government Securities as allowed by Reserve Bank of India for non-competitive bidding.

[15]

CHAPTER 2
INTRODUCTION TO THE TOPIC

2.1 WHAT IS THIS PROJECT ABOUT

The project is titled WHAT WOULD BE REQUIRED OF BANK OF BARODA TO MAKE ITSELF A BANK OF CHOICE TO THE GENERATION NEXT. The project title suggests that the proposed study is about generation next banking services that must be implemented in the bank to make itself a bank of choice to generation next. The requirement(s) of Bank of Baroda can be defined in two ways. First, the expectations and requirements of the generation next from the bank. Second, the shortcomings of Bank of Baroda in providing the services promised to its customers. The focus of this project is more on the second definition of requirement. So the project is concentrated towards finding out whether or not the Bank of Baroda provides the services it claims to provide to its customers.

2.2 DEFINING GENERATION NEXT

In terms of anthropology/sociology, the term generation refers to all the people born at the same time. In U.S.A. different generation has been named differently, like the Baby Boomers of the 1940s and 50s, the Hippy Generation of the 1960s, the X Generation of the 1970s. Though the origin of the term Generation Next is unknown, the present generation, people born in the 1980s ad 1990s has yet to be named officially but at present, though, the term Generation Next is adopted. The term Generation Next is synonymous with the term Next Generation.The term Next Generation refers to the generation after this, the present one.

[16]

For purposes of this report/study, Generation Next is 18-29 year-olds as on 2009. Further this Generation Next is defined as the cohort of young adults who have grown up with personal computers, cell phones and the internet and are now taking their place in a world.

2.3 GENERATION NEXT BANKING

Here is the three new channels for providing banking services which is becoming popular among the generation next customers: Automated Teller Machine (ATM) Internet Banking Mobile Banking

2.4 GEN NEXT PRODUCTS AND SERVICES OF BANK OF BARODA

Bank of Baroda has an array of products and services targeted towards the Generation Next. The bank named these products as GenNext Products. These products are provided through specialized bank branches known as GenNext Branch. The concept of Gen-Next branches for focusing the youth segment was launched during 2007-08. At present the bank has five Gen-Next branches located in Pune, Banglore, Ahmedabad and Vadodara,

The GenNext branches have an ambience that is vibrant and appealing to the youth. The target market is the professional youth in the age group of 18 - 25 years. These Branches are equipped with modern gadgets, ambience, internet, library and all other facilities, which a youth requires in todays modern era. These branches have a Yo zone where customers can to watch a movie or their favourite sports channel. They can also choose to surf the net, read a book or relax in the lounge and do some banking as well. The luxury element in these branches is to attract tech-savvy customers.

[17]

Some key products for Gen Next Products and their features are: I) GEN-NEXT JUNIOR (SAVING ACCOUNT): This is a Savings Bank Deposit product targeted to children up to 18 years of age. The Quarterly Account Balance (QAB) that has to be maintained is Rs 500/-. In case of joint accounts with parent and minors (with sole account) above 14 years, there is no ceiling on the maximum amount. An account in the sole name of minor above 10 years and below 14 years, maximum limit is Rs 1 lakh. The special feature of this product is that even children below age 10 years can open an account in the bank. In case of minor below 10 years the account shall be opened jointly with parents / guardian. Minors above 10 years (below 18 years) can open the account in their sole name subject to : Minor is able to read and write any of the recognized languages, and capable in the opinion of the Bank officials of understanding the what he / she is doing and SB account rules and regulations. II) GEN-NEXT LIFESTYLE: This is a Term Loan product towards customers between age 21-45 years. The target group is working executives/professionals. The purpose of this product is purchase of Home Furnishings / Consumer Durable goods (includes color T.V., video camera / refrigerator / washing machine / music system / airconditioners / cooking system etc), vehicle i.e. two-wheeler / four-wheeler, Laptop / PC, any new electronic gadgets like Mobile, i-Pod, Handycam etc.

[18]

III)

GEN-NEXT POWER (OVERDRAFT FACILITY):

This is a Savings Deposit product having an in built feature of overdraft facility. The product is targeted to working executives and other working professionals. There is no minimum balance requirement in the account and as such no service charges shall be levied towards this. There is no ceiling on the maximum amount to be deposited and credit balance in the account. The customers should be between 21-45 years.

iii)

GEN-NEXT SUVIDHA: This is a Recurring Deposit product. The target customer can open account in following ways: Individuals, in their single / joint names. Minors of age 10 years and above jointly with their parents / natural guardians. Minors below 10 years age through their parents.

There is no minimum balance requirement in the account and as such no service charges shall be levied towards this. Gen-next Suvidha Account can be opened with monthly installments of Rs.100/- or above & in multiples thereof with a maximum of Rs.10, 000/- per month.

The number of installments can range from 12 to 36 months (In multiples of 3 months).

The depositor shall, at the time of opening the account, stipulate the amount of core monthly installment and the number of installments payable by him which shall not subsequently alter.

The depositor is given an option to deposit higher monthly installment in the account as and when available and the maximum amount should not exceed Rs. 10,000/- per month.

[19]

Loan can be considered against the deposit in the account. in accordance to normal guidelines for advances against Recurring Deposit.

[20]

CHAPTER 3
RESEARCH PROBLEM
According to the census report of 2001, Indias young population aged below 30 years makes up 62.09% of the total population. The Dependency Ratio (share of non-working to working population) of young people (per 1000) is 621 and for old people (per 1000) is 131. According to a study conducted by the Asian Development Bank, the proportion of population in the consuming age (1554 years) is also likely to increase from 58% in 2006 to over 60% in 2010, while the dependency ratio is likely to decline from 62% in 2003 to around 55% in 2010. Today's young people are the next generation of workers, entrepreneurs, parents and active citizens. As such, there is huge market potential for financial services. Financial institutions of all types are operating in an increasingly competitive market environment to attract and capture the young customers. Bank of Baroda does not want to waste the opportunity to tap the young generation.

Senior officials at Bank of Baroda feel that a majority of the affluent young customers flock to the new generation private sector banks. The bank conducted an in-house survey all over India and found out that about 85 per cent of our customers belonged to the 45 + age bracket. (Source: http://www.expressindia.com/latest-news/andnow-a-bank-that-woos-young-and-restless-with-swanky-lounge/225878/) The service nature of bank offers represents a challenge. Banking transactions are invisible; the transfer of money from one account to another cannot be seen and is therefore difficult to evaluate. As a result banks have to be concerned with making themselves known for more noticeable offerings.

[21]

The term product differentiation is defined as the marketing of slightly modified products. The aim of these products is to become irreplaceable. Products can be modified on two levels, a physical and a psychological level. Modifications on a physical level include for example materials used, design and quality aspects. Advertising campaigns and reputation building for the producer are aspects that can lead to different psychological perceptions. Usually both levels of product differentiation are applied, and the use of brand names and trade marks plays an important role in this area. The concept of differentiation is described as a process of adding distinct characteristics that are not only meaningful but also valued, to the offerings of a company in order to distinguish the goods or services from the ones of competitors. Sophisticated companies manage to find chances to distinguish themselves from competitors at every point of customer contact. The banks must communicate an image of safety through e.g. the architecture of the building, the interior design and materials. There are basically two aspects that reason the use of differentiation: one being competitiveness and the second one being profitability. Successful differentiation increases competitiveness by creating an irreplaceable product allowing companies to extend product life cycles. The marketing mix concept consisting of the so called 4 P's: Product, Price, Promotion, and Place (Distribution) (Kotler et al., 2007) presents the starting point of this research. However, it appeared that these traditional marketing factors are not useful in the context of financial service differentiation. The concept of the 4P's of the marketing mix is extended by adding three additional P's to service environments: Phyical evidence, People, and Process (Kotler et al., 2007). The marketing of services in general, relies heavily on the employees of a service provider. The very nature of service delivery requires the contact of at least one employee and the customer. Knowing this, financial service providers can identify people as a major way to make a distinct offering in the mind of its customers. Consumer insight has two forms. Firstly, there are Insights (plural) flashes of inspiration, or penetrating discoveries that can lead to specific opportunities (Merlin Stone et al., 2004). However,
[22]

much bigger than this, and central to what companies need today, is Insight (singular), defined as the ability to perceive clearly or deeply, a deep, embedded knowledge about our consumers and our markets that helps structure our thinking and decision making(Merlin Stone et al., 2004). Insight combines several ideas. It includes classic areas, such as knowing who consumers are, what they do, where they are, what they buy, what they would like to buy, what media they are exposed to and what media they choose to view, listen to or read. It also includes more psychological areas what consumers think and feel, what their objectives and strategies are, and how these influence how they behave. Many of these are not conscious behaviours or thoughts on the part of consumers. Most are affected, perhaps even conditioned, by various external factors, from the state of the economy and society, to the way a brand is marketed. (Merlin Stone et al., 2004) I have also included areas that customer service people focus on such as the experience that the organization and its competitors give to consumers. Perhaps most importantly of all, the study include some idea of whether the organization has delivered against any promises made to customers (for instance through branding, product descriptions or marketing communications). The study also explores the need, desire and satisfaction of the customer. The Merriam-Webster Dictionary (2009) proposes two definitions of need. The first one is a lack of something requisite, desirable, or useful. The second offered definition states satisfaction as a physiological or psychological requirement for the well-being of an organism. According to Merriam-Webster Dictionary (2009) the term desire is defined as to express a wish for. According to MerriamWebster Dictionary (2009) the term want is defined as to have a strong desire for. The MerriamWebster Dictionary (2009) proposes three useful definitions of satisfaction. The first one is the fulfillment of a need or want. The second offered definition states satisfaction as the quality or state of being satisfied . The third offered definition states satisfaction as a source or means of enjoyment.

[23]

CHAPTER 4
RESEARCH OBJECTIVE
The purpose of this present study is to analyze the retail banking market among Generation Next in Kolkata and to understand how a bank can achieve differentiation based on a marketing approach. The Indian Banking Industry has transformed into a multiplayer, multi product market with varied market size and segments. Apart from having to cope with change in structure and culture (government to corporate), Bank of Baroda has to gear itself to meet competition in various segments. The specific research objectives of this study were as follows: 1. Determine the parameters for choosing the bank by young generation. 2. Determine the process of choosing the bank. 3. Identify the level of satisfaction with the bank and the reasons for any dissatisfaction. 4. Evaluate the utilization of various services. 5. Evaluate certain behaviours of customers. 6. Assess respondents image of the Bank of Baroda on a series of image characteristics. i. ii. Measure advertising awareness and media exposure of respondents. Comparision with other competitive banks.

[24]

CHAPTER 5
RESEARCH METHODOLOGY
Type of research Data source Data collection method Data collection tool Sampling universe Sample size - Descriptive research -Primary and Secondary data -Interview and survey -Questionnaire -Kolkata -61

5.1 SAMPLE DESIGN

The target population of the study consists of the existing customers of Bank of Baroda in Kolkata. This survey was done by collecting the data from the respondents.

5.2 SAMPLE SIZE

After due consultation with the company supervisor, taking into consideration the limited time and wide spread of respondents geographically, the sample size above 50 was found to be appropriate for the study. 61 bank customers were interviewed.

5.3 SAMPLING TECHNIQUE

The sampling technique used for the study was simple random sampling and the area of the research was concentrated in the city of Kolkata only. The bank customer list obtained from four branches of Bank of Baroda was used for the purpose of this study. The names of these branches are: College Street Branch, Chakraberia Branch, Surya Sen Extension Branch and Beliaghata Branch. Respondents were randomly selected from the list of bank customers as obtained from the bank officials to assure a representative sample was used as the basis of data analysis.

[25]

5.4 PRIMARY DATA

A primary data is a data, which is collected for gathering information first time and to analyze the problem. For this study structured interview was conducted. Personal interviews were conducted with 61 bank customers of Bank of Baroda. In personal interviews, interviewees were questioned in their residence or office/shops after taking their prior appointment on the telephone/mobile phone. Personal interview is best suited for this study because the emotions of the interviewee could be seen and felt. But using personal interview method only limited number (i.e. maximum three) of bank customers could be interviewed in a single day. The questionnaire was pre-tested on a small sample of 3 respondents and based on this minor changes were made to improve the clarity of the questionnaire. Having the above reasoning as a basis, my hopes were that I would get an as comprehensive picture of the research objective as possible.

5.5 SECONDARY DATA

Data that has already been collected for a different purpose, which can be used by researchers to reanalyze and draw, own conclusions. Both, raw data as well as published summaries can be regarded as secondary data. Secondary data allows researchers to access large amounts of data they might otherwise not be able to obtain, due to limitations in time, budget or reach. Secondary data used in this study was obtained from journals and publications through the library of the Indian Statistical Institute (ISI), Kolkata and National Library, Kolkata. Additionally, the websites of banks, providing e.g. annual reports with information concerning image and focus are used. Internet, newspapers, scientific journals provide up-to-date information on key areas of research.

[26]

The secondary data provides the basis for this research and it is therefore important to have fundamental knowledge of marketing techniques and the special characteristics of banks in order to successfully retrieve our primary data and achieve our purpose.

5.6 STATISTICAL TOOLS

In order to analyze the data descriptive statistics were employed. The frequency distribution and Simple percentage analysis had been used as a descriptive statistical tool. The tables included number of respondents and percentages by response to the questions.

5.7 LIMITATIONS OF THE RESEARCH

The following limitations can be pointed out from the research that I conducted in relation to the problems that were given to me by Bank of Baroda: a) The sample size chosen for the questionnaire was only 61 and that may not represent the true picture of the consumer perception about the services of Bank of Baroda. b) The research was confined to the city of Kolkata. The respondent belonged only to Kolkata and not others who were out of Kolkata. c) The researcher is aware of some problems that can arise due to language differences. The interviews are conducted in English and/or Hindi, which for some interviewees was not their native language. The researcher therefore explained questions in more detail, if needed, and asked for additional explanations, if the answers were not clear. Furthermore, the respondents might even present information in a more positive way or negative way than it is the case in reality.

[27]

CHAPTER 6
ANALYSIS OF DATA

6.1 CUSTOMER PROFILE

Segmentation of the respondents on the basis of certain important criteria: Table 1 Respondents Profile

Parameters 18-21 years 22-25 years Age 26-29 years 30-34 years 35-49 years 50-64 years Below 10th 10 Education
th

Frequency 6 18 16 5 6 9 7 6 5 18 16 9 45 16 18 10 2 9 22 2 0 61
[28]

Percentage 10 29 27 8 11 15 12 10 7 29 27 15 73 27 29 17 15 37 2 0

HSC/10+2 Graduate Postgraduate Professional Males Females Businessman Salaried Professional

Gender

Occupation

Self-employed Student Housewife Retired

Total

Figure 6.1 Customer profile - Age

Figure 6.1 Customer Profile - Age

50-64 years 15% 18-21 years 10%

35-49 years 11% 22-25 years 30% 30-34 years 8%

26-29 years 27%

From table-1 and in Figure 1 we see that of the total 61 customers 6 respondents or 10% of the respondent belonged to the age group of between 18-21 years, 18 respondents or 30% belonged to the age group between 22-25 years, 16 respondents or 27% of respondents belonged to 26-29 years, 5 respondents or 8% of the respondents belonged to 30-34 years, 6 respondents or 11% of the respondents belonged to 35-49 years and 9 respondents or 15% from the respondents belonged to 50-64 years but there is no respondent from the age group above 64 years.

[29]

Figure 6.2 Customer profile - Age

Figure 6.2 Customer Profile - Age

Above 29 years 34%

Below 30 years 66%

Shown in Figure 1.2;Of the 61 customers interviewed 40 or 66 percent belonged to age group less than 30 years while 21 or 34 percent belonged to age group above 29 years. Figure 6.3 Customer profile - Gender Figure 6.3 Customer Profile - Gender
50 45 40 35 30 25 20 15 10 5 0 Males Females 11 30

Of the 61 customers interviewed 45 respondents or 73 respondents percent were male while 16 respondents or 27 respondents percent were female.
[30]

Figure 6.4 Customer profile - Education Figure 6.4. Customer Profile Education
Profession al 15% Postgradu ate 27% Below 10th 11% 10th 10% HSC/10+2 7% Graduate 30%

Of the 61 customers interviewed, 7 respondents or 12 respondents percent had education less than class 10th, 6 respondents or 10 respondents percent had education up to class 10th, 4 respondents or 7 respondents percent had education up to HSC/10+2, 18 respondents or 29 respondents percent had completed Graduation, 16 respondents or 27 respondents percent had completed Post graduation and 9 respondents or 15 respondents percent had completed professional education. Figure 6.5 Customer profile - Occupation Figure 6.5 Customer Profile Occupation
Housewife 2% Student 36% Retired 0% Businessm an 30%

Selfemployed 15%

Salaried 12% Profession al 5%

Of the 61 customers interviewed, 22 respondents or 37 respondents percent were students, 18 respondents or 29 respondents percent were businessmen, 10 respondents or 17 respondents percent were salaried, 2 respondents customers or 5 respondents percent were professionals, 6 respondents or

[31]

15 respondents percent were self-employed and 1 respondents or 2 respondents percent was housewife.

[32]

6.2 PARAMETERS FOR CHOOSING A BANK

Figure 6.6 Reasons for opening account:

Figure 6.6 Reasons for opening account 70 Number of resposes 60 50 40 30 20 10 0

61

15 1 4

Of the 70 customers interviewed, all 39 or 95 percent of customers responded that nearness to office/home was one of the reasons for opening account in Bank of Baroda. 10 customers responded that they were recommended by others to open account in Bank of Baroda. Only three customers responded that customer service as one of the reasons. Only 1 customer responded to the convenient working hours. On further survey it was found that reasons for opening account in some other Public Sector banks was also nearness to home/office. The reason for opening account in private bank was nearness and customer service. On further survey it was found that nearness to home was the biggest factor for choosing a bank.

[33]

6.3 PROCESS OF CHOOSING A BANK

Figure 6.7 Others advised to open account in Bank of Baroda For customer aged below 30 years. Figure 6.7 Age below 30 years - Others advised to open account in Bank of Baroda

38%

Recommended by others 62%

Of the 40 respondents aged below 30 years 25 or 62 percent of respondents said that others have recommended them to open account in Bank of Baroda. Figure 6.8 Customers aged below 30 years Having parents account in Bank of Baroda

Figure 6.8 Age below 30 years - Have parents account in Bank of Baroda
Have parents account in Bank of Baroda 30% 70%

Of the total 40 customers aged below 30 years, 12 respondents or 30 percent respondents have their parents account in Bank of Baroda.

[34]

6.4 EVALUATING CERTAIN BEHAVIOUR OF BANKS CUSTOMER

Figure 6.9 Like to have internet banking Customers between age 18-25 years

Figure 6.9 Age 18-25 years

29% Like to have internet banking facility 71%

Of the 24 young customers interviewed aged between 1825 years, 17 or 71 percent responded they like to have internet banking facility in future. In the next question customers were given a situation and asked to respond to the situation by choosing one option among the three given options.

[35]

Figure 6.10 Customers preferred way of registering complain with the Bank of Baroda

Figure 6.10 Method of complaining Number of respondents 60 50 40 30 20 10 0 Visit the bank to Write complaint register online complaint Call customer care 3 4 54

Of the total 61 customers interviewed, 54 or 89 percent customers said they would visit the bank to register complaint, while only 6 percent customer choose other options for complaining viz. Write complaint online and Call customer care. The reason for above response could be attributed to nearness of bank to the customers office/home.

[36]

Figure 6.11 How the customers like to be treated in the bank by bank employees. Figure 6.11 How do you liked to be treated in a bank
Number of respondents 22 20 18 16 14 12 10 8 6 4 2 0 Totally Professional 33

Friendly

Of the total 61 customers interviewed, 28 or 46 percent customers said they like to be treated in a totally professional manner by the bank employee, while 33 or 54 percent of customers said they like to be treated in a friendly manner. The views in each customer group agewise was evenly distributed. Figure 6.12 Customer used Debit card for shopping

Figure 6.12 Age below 34 years - Used ATM cum Debit card for shopping/buying tickets

Shopped or Bought tickets using ATM cum Debit card 39%

61%

Of the total 44 customers aged below 35 years having ATM-cum-Debit card, 17 respondents or 39 percent respondents said that they have used Debit card for shopping or buying railway/airline ticket. Low usage is due to perception of extra transaction charge of using debit card.

[37]

Figure 6.13 Customer visited or compared different banks before opening account

Figure 6.13 Visited or compared different banks before opening account Number of respondents 70 60 50 40 30 20 10 0 61

Visited or compared different banks before opening account

Of the total 61 customers interviewed, all the 61 customers said they never visited or compared different banks before opening account. Figure 6.14 Bank account in other banks of customers aged above 29 years

Figure 6.14 Age above 29 years - Bank Account in other bank

Above 30 years having second bank account 57%

43%

Of the 21 customers aged above 29 years, 12 or 57 percent customers responded that they had a second account in some other bank. Most of the people above 29 years have account in more than one bank. On further survey,Of these 12 customers,only 5 respondents or 42 percent of respondents said that Bank of Baroda is their primary bank.
[38]

Figure 6.15 Customers aged below 30 years having second account in other banks

Figure 6.15 Age below 30 years - Bank Account in other bank Below 30

years having second bank account 45%

55%

Of the total 40 customers aged below 30 years, 18 respondents or 45 percent respondents said they had a second bank account in some other bank, 22 respondents or 55 percent respondents do not have a second account. Other banks are also doing good marketing for acquiring the customers. Figure 6.16 Customers aged between 18-21 years having another account in some other banks

Figure 6.16. Age between 18-21years - Bank Account in other bank

Between 1821 years having second bank account 17%

83%

Of the total 6 customers between age 18-21 years, only 1 respondents or 17 percent respondents had bank account in other bank.

[39]

Figure 6.17 Customers aged between 22-29 years having another account in some other banks

Figure 6.17. Age between 22-29 years - Bank Account in other bank

Between 2229 years having second bank account 47%

53%

Of the total 34 customers aged between 22-29 years, 16 or 47 percent of the customers said they had second account account in some other bank.

6.5. CUSTOMERS AWARENESS LEVEL

Figure 6.18 Advertisement awareness

Number of respondents

60 50 40 30 20 10 0

Figure 6.18 Advertisements 55

Haven't seen/Don't remember

Remember advertisements

Of the total 61 customers interviewed, 55 or 90 percent customers responded negatively. Only 6 or 10 percent customers could recollect any print or television advertisements of Bank of Baroda.

[40]

Figure 6.19 Product and service awareness

Figure 6.19 Product and service awarenes

10
9 Number of respondents 8 7 6 5 4 3 2 1 0 Health care insurance Online bill payment Mobile banking 6

Out of the total 61 respondents, only 29 was able to answer this question, 10 customers or 17 percent customers said they are aware that Bank of Baroda sells Health Care Insurance, 10 customers or 17 percent customers said that they are aware that Bank of Baroda has Online Bill Payment facility, and 9 customers or 15 percent customers said they are aware about Mobile banking facility. Only Postgraduates and professionals noticed these products. The product or service awareness among Bank of Baroda customers is very poor. On further survey of those customers who responded positively came to know about these products while filling account opening forms.

[41]

6.6 CUSTOMERS IMAGE OF BANK OF BARODA

Figure 6.20 Image of Bank of Baroda compared to other Public Sector Banks in terms of service quality:

Figure 6.20 Image of Bank of Baroda compared to other Public Sector Banks' in terms of service quality Same as other PSB's 23%

Better than other PSB's 77%

Of the total 61 respondents only 51 respondents was able to respond to this question, 39 or 77 percent viewed Bank of Baroda service quality better than other Public Sector Banks, 12 customers or 23 percent customers viewed Bank of Baroda service quality same as other Public Sector Banks. No customer responded that Bank of Baroda service quality lower than other Public Sector Banks. On further survey of those having acount in other banks, only State Bank of India customers rated Bank of Baroda same as other PSBs, while other customers rated better than other PSBs. On further survey it was found that Bank of Baroda scored low on service quality compared to Private banks but customers had more faith on the Bank compared to Private banks.

[42]

6.7 SATISFACTION LEVEL OF CUSTOMERS

Table 2 Satisfaction from Services Rendered by Customer Profile Parameters 18-21 years 22-25 years 26-29 years 30-34 years 35-49 years 50-64 years Below 10th 10th HSC/10+2 Graduate Postgraduate Professional Males Females Businessman Salaried Professional Self-employed Student Housewife Retired All Customers a f 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 b f 2 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 1 c f 4 15 5 0 4 6 4 5 3 11 10 3 21 13 13 1 2 3 15 0 0 35 d f 0 3 7 1 3 2 2 1 1 3 6 3 15 2 2 3 1 3 7 0 0 16 e f 0 0 4 3 0 1 1 0 0 4 0 3 8 1 1 3 0 3 0 2 0 9 Total % 10% 30% 26% 7% 11% 15% 11% 10% 8% 30% 26% 15% 73% 27% 30% 11% 5% 15% 36% 3% 0% 100%

Age

Education

Gender

Occupation

F 6 18 16 4 7 9 7 6 5 18 16 9 45 16 18 7 3 9 22 2 0 61

Note: a=Very Dissatisfied d=Very Satisfied

b=Somewhat Dissatisfied e=Completely Satisfied

c=Fairly Well Satisfied

[43]

Figure 6.21 Satisfaction level with service of Bank of Baroda

Figure 6.21 Satisfaction Very Dissatisfied 0% Completely Satisfied 15%

level with the service of Bank of Baroda Somewhat Dissatisfied 2%

Very Satisfied 26%

Fairly Well Satisfied 57%

Of the total 61 respondents interviewed, 32 respondents or 54 percent respondents responded they were fairly well satisfied, 18 respondents or 29 percent respondents responded that they were very satisfied, 9 respondents or 15 percent respondents said they were completely satisfied. While 2 or 3 percent respondents said they were somewhat dissatisfied and no customer said they were very dissatisfied with the services of the bank. 97 percent of respondents were satisfied with the service of Bank of Baroda. Only 3 percent were dissatisfied. On further survey it was found that all the customers irrespective of their age gave importance to all the service factors viz. tangible service factors like office interior, air conditioning, etc. and intangible service factors like safe feeling, quick service, polite behavior, etc. that were asked in the questionnaire.
[44]

Figure 6.22 Satisfaction level of customers aged between 18-25years Figure 6.22 Satisfaction level - Age 18 - 25 years Somewhat Dissatisfied Very Satisfied 8% 13%

Fairly Well Satisfied 79%

Of the 24 customers aged between 18-25 years,19 respondents or 79 percent were fairly well satisfied, 3 respondents or 13 percent were very satisfied, 2 or 8 percent was very dissatisfied.No customer was very dissatisfied or completely satisfied with the service of bank.

[45]

Figure 6.23 Satisfaction level of customers aged between 26-29 years Figure 6.23 Satisfaction level - Age 26 - 29 years

Completely Satisfied 25%

Fairly Well Satisfied 31%

Very Satisfied 44%

Of the 16 customers between age 26-29 years, 7 respondents or 44 percent respondents were very satisfied, while 4 respondents or 25 percent respondents were completely satisfied and 5 respondents or 31 percent respondents were fairly well satisfied. No customer between age 26-29 years was dissatisfied.

[46]

Figure 6.24 Satisfaction level of customers aged above 29 years Figure 6.24 Satisfaction level - Age above 29 years Completely Satisfied 24% Fairly Well Satisfied 48%

Very Satisfied 28%

Of the total 20 customers aged above 29, 10 respondents or 48 percent were fairly well satisfied, 4 respondents or 24 percent were completely satisfied and 6 or 28 percent were very satisfied. No customer was dissatisfied. Figure 6.25 Customer views on quick service from employees Figure 6.25 Customer views on Quick service from employees

Poor 13%

Very Good 51%

Fair 36%

Of the total 61 customers interviewed, 31 respondents or 51 percent respondents rated Very Good, 22 or 36 percent respondents rated Fair and 8 or 13 percent respondents rated Poor. No respondents rated Excellent.
[47]

Figure 6.26 Views of customers aged between 18-25 years on quick service from employees Figure 6.26 Customer views on Quick service from employees- Age (18-25 years) Poor 21%

Very Good 25%

Fair 54%

Of those 24 customers surveyed who were aged between 18-25 years, 13 respondents or 54 percent respondents rated Fair, 6 respondents or 25 percent rated Very Good and 5 respondents or 21 percent rated Poor. No customer rated Excellent. Figure 6.27 Views of customers aged between 26-29 years on quick service from employees

Figure 6.27 Customer views on Quick service from employees - Age(26-29 years)

Poor 19% Very Good 56% Fair 25%

Of the 16 customers surveyed who were aged between 26-29 years, 9 respondents or 56 percent rated Very Good, 5 respondents or 25 percent rated Fair and 3 respondents or 19 percent rated Poor.

[48]

Figure 6.28 Views of customers aged between 18-25 years on quick service from employees Figure 6.28 Customer views on Quick service from employees - Age(Above 29years)

Fair 30%

Very Good 70%

Of the 20 custpmers surveyed who were aged above 29 years, 10 respondents or 70 percent respondents rated Very Good and 4 respondents or 30 percent rated Fair. Figure 6.29 Views of customer aged between 18-25 on Polite Behaviour of employees Figure 6.29 Customer views on Polite Behaviour of employees - age(18-25) Excellent Poor 5% 11% Fair 12% Very Good 72%

Of the total 61 customers surveyed, 43 customers or 72 percent respondents rate Very Good, 7 respondents or 12 percent rate Fair, 7 respondents or 12 percent rate Poor and 3 respondents or 5 percent respondents rate Excellent. General rating across different age groups was similar.

[49]

Figure Importance and Performance of Air conditioning Figure 6.30 Age 18-25 years Importance of Air conditioning
30 25 20 15 10 5 0 0 Not at all Little Very Most Important Important Important Important 0 0 Very Good 54% Good 46% 24

Figure 6.31 Age 18-25 years- Customer views onAir conditioning in Bank of Baroda
Excellent Poor 0% 0%

Figure 6.32 Age 26-29 years - Importance of Air conditioning

18 16 14 12 10 8 6 4 2 0 Not at all Important Little Important Very Important Most Important 0 0 0 16

Figure 6.33 Age 26-29 yearsCustomer views on Air conditioning in Bank of Baroda
Excellent Poor 0% 0%

Good 44% Very Good 56%

To the feature listed in Question no. 20 viz. Air conditioning; all the customers across all the age group rated Very Important. Of the 24 respondents between 18-25years: 13 respondents or 54

[50]

percent rated Very Good, 11 respondents or 46 percent rated Good. Of the 16 respondents between 26-29years: 9 respondents or 56 percent rated Very Good, 7 respondents or 44 percent rated Good. Figure Importance and Performance of Visually appealing office interior Figure 6.34 Age 18-25 years Importance of Visually appealing office interior
16 14 12 10 8 6 4 2 0 15 18 16 14 12 10 8 6 4 2 0

Figure 6.35 Age 18-25 years- Customer viewsd on visually appealing office interior in Bank of Baroda
16

0 Poor Good Very Good

0 Excellent

Not at all Little Very Most Important Important Important Important

Figure 6.36 Age 26-29 years - Importance of Visually appealing office interior
16 14 12 10 8 6 4 2 0 Not at all Important Little Important Very Important Most Important 2 0 0 14 18 16 14 12 10 8 6 4 2 0

Figure 6.37 Age 26-29 yearsCustomer viewsd on visually appealing office interior in Bank of Baroda
16

0 Poor Good

Very Good Excellent

To the feature listed in Question no. 20 viz. Visually appealing office interior; Of the 24 respondents between 18-25years: 9 respondents or 38 percent rated Little Important, 15 respondents or 62 percent rated Very Important. Of the 16 respondents between 26-29 years 14

[51]

respondents or 87 percent respondents rated Very Important and 2 respondents or 13 percent rated Little Important. Of the 24 respondents between 18-25years all the respondents rated Good. Of the 16 respondents between 26-29years all the respondents rated Good.

To the feature listed in Question no. 20 viz. Smartly dressed employees; all the customers across all the age group rated Very Important. Of the 24 respondents between 18-25years all respondents rated Good.Of the 16 respondents between 26-29 years: 3 respondents or 19 percent rated Very Good, 13 respondents or 81 percent rated Good.

To the feature listed in Question no. 20 viz. Smartly dressed employees; all the customers across all the age group rated Very Important. Of the 24 respondents between 18-25years all respondents rated Good.Of the 16 respondents between 26-29 years: 3 respondents or 19 percent rated Very Good, 13 respondents or 81 percent rated Good.

To the feature listed in Question no. 20 viz. Convenient Working Hours; Of the total 61 respondents interviewed, all respondents rated Excellent.

To the other features listed in Question no. 20 viz. Sincere in solving customers problem, Provide services as promised, Employees willingness to help, Customers confidence on employees, Safe feeling of customers in transaction, Understanding specific needs of customers and Transparency in service charges; all the customers across all the age groups rated most important. All the above mentioned features were rated Most Important by more than 80% of the customers.

[52]

CHAPTER 7
FINDINGS
The findings that can be drawn from the survey conducted by me can be summarized in the following way: a) Location is the main factor for choosing a bank. Nearness to home is the most important criteria to choose a bank. b) Existing customers freely advertise the bank, thus,play a big role in drawing new customers. c) 30% customers aged below 30 years had their parents account in Bank of Baroda. Parents create relationship with the bank, which their children might maintain. d) Larger percentage of young customers are comfortable with using internet. 71% customers aged between 18-25 years showed desire to have internet banking facility in their account e) No customer compares between different banks by visiting the bank before opening a bank account. f) More than 50% customers of Bank of Baroda have account in other banks. g) Low level of awareness among customers regarding services and products offered by the bank. More than 80% customers are not aware about the modern services of Bank of Baroda. h) Bank of Baroda has good brand image among its customers. i) Overall 98% of the customers are satisfied with the service of bank. Customers of age group between 18-25 years have slightly less satisfaction level. j) Customers feel employees have a polite behavior. Customers feel the need to increase service speed. k) 8 am to 8 pm bank branches are rated excellent in terms of convenient working hours. l) All the tangible service factors viz. air conditioning, visually appealing interior, smartly dressed employees are deemed important by generation next customers.

[53]

CHAPTER 8
CONCLUSIONS AND SUGGESTIONS
After studying the outcomes of this research it can be concluded that convenience in terms of location and working hours is the most important factor for choosing a bank branch. The overall image of the bank is the deciding factor for choosing a bank. The Generation Next customers perceive tangible service factors as a very important element in deriving satisfaction from the bank apart from the quality service. Awareness about the products and services of the bank among Bank of Baroda customers is very low. This is due to lack of marketing activities at branch level by Bank of Baroda. By visiting any branch of Bank of Baroda, it can be clearly identified that the bank is trying to change its image in public by adopting a new logo and slowly creating a distinct ambience by coloring its branch interiors in vermillion color. Also studying many other secondary sources of information it can be concluded that, in the present buyer market economy, banking is a very competitive business field. In banking industry the demanded amount of security in banking transactions can be expected to be as high as possible. Even after the overall good ratings given to Bank of Baroda from its customers, the loyalty of customers could not be bought easily. After thoroughly analyzing the outcome of the research I came up with the following suggestions to solve the managerial problem at hand. The suggestions are as follows: 1) The ambience of the bank should be developed to give a feeling of high quality. This is because generation next customers lay emphasis on tangible service elements. They also liked the branding efforts of the bank. Competitor banks are doing their branding to woo youth customers.

[54]

2) Competition on the basis of pure products is not possible with private banks; therefore the bank must have to match the level of service quality with private banks. The customers perceived service quality of Public Sector Banks in general lower than private sector banks. Next Generation customers are a lot restless and do not like to wait, therefore quicker service have to be provided to these customers. 3) Customers should be made aware of the product and services offered by the bank. Most of the Generation Next customers are unaware about the services especially tailor made for their requirements. There integrated marketing should be done by the bank to attract these customers. 4) Bank should seek regular contact with customers. This makes the customer feel that the bank cares about them. The bank can also use this communication for marketing purposes. 5) Bank should motivate customers to also approach the bank to make suggestions for improvement. This will increase banks understanding of its customers.

[55]

Bibliography 1. 2. 3. www.bankofbaroda.com Bank of Baroda Annual Report 2008-2009 Alok Ranjan Chaurasia, S.C. Gulati (2008), India: The State of Population 2007,Oxford University Press. 4. 5. Census Report 2001 Merriam-Webster Dictionary(2009).URL:http://www.merriamwebster.com 2009 6. E-book: Merlin Stone, Alison Bond and Bryan Foss, (2004), Consumer insight: how to use data and market research to get closer to your customer, Kogan Page Limited., p.1-3. 7. 8. Kotler, P. (2007). Marketing Management. (12th ed.), Pearson Education Inc. p. 19 E-book: W. Bruce Wrenn, Robert E. Stevens, David L. Loudon (2002), Marketing research: text and cases, The Haworth Press, Inc., Chapter 11. assessed June

[56]

A photograph of a lounge in GenNext branch in Pune

As shown in the photograph, the lounge has a plush interior bean bang, a library and a Plasma TV et al. Bank of Baroda is adding luxury element to the branch to attract youth customers.

Source: http://www.thehindubusinessline.com/2007/09/26/stories/2007092650630600.htm

[57]