A STUDY ON THE CUSTOMER PREFERENCES OF BANKING SERVICES OF ICICI BANK IN ALLAHABAD

BY

ALOK KUMAR SINGH (Reg No: 35106003)

A PROJECT REPORT Submitted to the Department of SRM SCHOOL OF MANAGEMENT In partial fulfillment of the requirements for the award of the degree Of MASTER OF BUSINESS ADMINISTRATION

IN

SRM SCHOOL OF MANAGEMENT SRM UNIVERSITY

MAY 2008

BONAFIDE CERTIFICATE
Certified that this project report titled A STUDY ON THE CUSTOMER PREFERENCES OF BANKING SERVICES OF ICICI BANK IN ALLAHABAD is the bonafide work of Mr. ALOK KUMAR SINGH (Reg. No: 35106003) who carried out the project under my supervision. Certified further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

Signature of the Guide

Signature of the HOD/Dean

Signature of Internal

Signature of External

ACKNOWLEDGEMENT

I am very much indebted to Dr. JAYASHREE SURESH, Head of the Department MBA, SRM School of Management, Kattankulathur for her encouragement during the project and the college management for providing me all facilities to do the project work in ICICI Bank.

With profound sense of gratitude and regards, I acknowledge the support and guidance of my internal project guide, PROF T.P NAGESH, SRM School of Management Studies, Kattankulathur for his excellent guidance and valuable suggestions throughout the execution of this project.

I am indebted to Mr. SANDEEP K. SINGH, Sales Manager, ICICI Bank, Allahabad, for acknowledging my project and instilling confidence in me.

DECLARATION
Alok Kumar Singh is a bonafide student of SRM School of Management, Kattankulathur and would like to declare that the project work titled "A STUDY ON CUSTOMER PREFERENCES OF BANKING SERVICES OF ICICI BANK IN ALLAHABAD," was undertaken in partial fulfillment of Master of Business Administration degree course of the SRM University is my work and was not duplicated from previous report.

(Alok Kumar Singh)

Abstract
ICICI bank has been into the banking sector for a decade and this study brings about the customer satisfaction among different node of banking services. The study portrays the level of satisfaction of various value added services among the respondents and compiles customers of ICICI bank suggestion effective. This study will help the bank to forth strategies that will increase the level of satisfaction of the account holders and give an idea of what the account holders require and their needs and wants which could be better understood on the whole. Here the bank is able to understand the profile of the present and potential account holders and what makes them more aware to improve on the services rendered by the bank.

CONTENTS

SL.NO
1.

CHAPTER
INTRODUCTION OBJECTIVES OF THE STUDY SCOPE OF THE STUDY LIMITATIONS OF THE STUDY RESEARCH METHODOLOGY DATA ANALYSIS AND INTERPRETATION FINDINGS SUGGESTIONS CONCLUSION BIBLIOGRAPHY ANNEXURE

PAGE NO.

1 13 14 16 17 23 57 60 61 62 63

2.
3.

4. 5.
6.

7. 8. 9.
10. 11.

LIST OF TABLES
SL.NO
1.

PARTICULARS
GENDER CLASSIFICATION AGE WISE CLASSIFICATION EDUCATIONWISE CLASSIFICATION OCCUPATION WISE CLASSIFICATION INCOMEWISE CLASSIFICATION TYE OF ACCOUNT CLASSIFICATION WHO MOTIVATED TO OPEN A ACCOUNT PREFER MODE OF SERVICE AWARENESS OF SERVICE RATE OF CUSTOMER SERVICES RECOMMEND OR SUGGEST OTHERS TO OPEN ACCOUNT

PAGE NO.

23 25 27 29 31 33 35 37 39 41 43

2. 3. 4. 5. 6. 7. 8.
9.
10. 11

LIST OF CHARTS
SL.NO
1.

PARTICULARS
GENDER CLASSIFICATION AGE WISE CLASSIFICATION EDUCATION WISE CLASSIFICATION OCCUPATION WISE CLASSIFICATION INCOME WISE CLASSIFICATION TYPE OF ACCOUNT CLASSIFICATION WHO MOTIVATED TO OPEN A ACCOUNT PREFER MODE OF SERVICE AWARENESS OF SERVICE RATE OF CUSTOMER SERVICES RECOMMEND OR SUGGEST OTHERS TO OPEN ACCOUNT

PAGE NO.

24 26 28 30 32 34 36 38 40 42 44

2. 3.

4.
5. 6.

7.
8.
9.
10. 11

INTRODUCTION
CUSTOMER PREFERENCES: Have we ever wondered why our company often loses relatively satisfied customers? Why is it that customers will often indicate they are satisfied with how they have been treated but then leave for a competitor at the first opportunity? Why is customer defection often unrelated to price? The answers to these and other related questions are found in coming to an understanding of customer preference. The idea that customers prefer one product or one service over another is not new. The ability to identify and measure the elements of such preference decisions with any accuracy and reliability has only recently become available. Research into this area of consumer behavior has brought understanding to some of the major issues with standard customer satisfaction research. Most importantly, we have come to realize that high customer satisfaction does not assure continued customer preference. Satisfaction research over the past fifteen years demonstrates that high satisfaction scores, while a measure of corporate performance on a set of important criteria, do not adequately explain the composition of preference formation.

10

TARGET AUDIENCE: Target audiences are distinct groups or segments of customers, and clearly defining your business' target audiences will help you to promote the aspects of your business that are most relevant to each group. SEGMENT YOUR EXISTING CUSTOMERS: To start defining your target audiences for marketing purposes, take a look at the customers you have now. Who are your best or most profitable clients? Which group of customers makes up the bulk of your business? What do all these customers have in common? Defining what your customers have in common can help you craft a marketing strategy to draw in more of the same people. Questions to ask yourself about your customers can include: What is the age group of customers? Is the group primarily male or female? Are they urban dwellers or suburbanites? Are they educated? What are their special interests or hobbies? What is their income range?

11

Knowing your customers can help you combine these factors to define your target audiences - again, your business likely will have more than one - as specifically as possible: Upper-income women with school-age children Teen-agers living within one mile of store Men over 55 who are interested in digital photography.

TAILOR YOUR MARKETING OBJECTIVES TO YOUR TARGET AUDIENCES: As you learn more about your target audiences, write descriptions of them, making them as specific as possible. Then decide what your primary objectives are: Do you want your most profitable customers to refer you to other similar customers? Do you want your most frequent customers to spend more on each visit? Be sure to link your marketing objectives to specific business objectives. Customer preferences and business climates are always shifting, and the most successful business owners are those who adapt their businesses to those constant changes.

12

INDUSTRY PROFILE

The Indian Banking industry, which is governed by the Banking Regulation Act of India, 1949 can be broadly classified into two major categories, non-scheduled banks and scheduled banks. Scheduled banks comprise commercial banks and the cooperative banks. In terms of ownership, commercial banks can be further grouped into nationalized banks, the State Bank of India and its group banks, regional rural banks and private sector banks (the old/new domestic and foreign). These banks have over 67,000 branches across over the country. CONSUMER OR RETAIL BANKING:

This is what most people think of when they think of banking: A small to mid-sized branch with tellers and platform officers - the men and women in suits sitting at the nice wooden desks with pen sets-to handle customers' day-to-day needs. Although thousands of small community banks, credit unions, and savings institutions still exist, employment opportunities are increasingly coming from a few mega players such as Citibank, Bank of America, and J.P. Morgan Chase, most of which seem hell-bent on building nationaland even international-banking operations.

13

BUSINESS OR CORPORATE BANKING: Many of the players in this group are the same ones in the consumer-banking business; others they'll find on Wall Street, not Main Street. At the highest level, the larger players (Wells Fargo, Wachovia, and Bank One being three names to add to the list of mega players above) provide a wide range of advisory and transaction-management services to corporate clients. Depending on which institution and activity area they join, the work can resemble branch banking or investment banking. SECURITIES AND INVESTMENTS:

Traditionally, this field has been the domain of a few Wall Street firms. However, as federal regulations have eased, many of the biggest commercial banks, including Bank of America, Citibank, and J.P. Morgan Chase, have aggressively added investment-banking and asset-management activities to their portfolios. For anyone interested in corporate finance, securities underwriting, and asset management, many of these firms offer an attractive option. However, hiring for these positions is frequently done separate from that for corporate and consumer banking.

14

PROFILE OF ICICI BANK ICICI Bank is India's second-largest bank with total assets of Rs. 3,767.00 billion (US$ 96 billion) at December 31, 2007 and profit after tax of Rs. 30.08 billion for the nine months ended December 31, 2007. ICICI Bank is second amongst all the companies listed on the Indian stock exchanges in terms of free float market capitalization*. The Bank has a network of about 955 branches and 3,687 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Unites States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the

15
New York Stock Exchange (NYSE).

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

After

consideration

of

various

corporate

structuring

alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the

16

view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transactionbanking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its whollyowned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.

17

ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees.

PRODUT PROFILE OF ICICI BANK

DEPOSITS 1. Savings account 2. Special saving account 3. Senior citizen services 4. Fixed deposit 5. Easy fixed deposit 6. Recurring deposit 7. Private banking 8. Roaming current account 9. Young stars account 10. Bank @ campus 11. Salary account 12. Women's account 13. EEFC( exchange earners Foreign currency) account 14. Resident foreign currency (domestic) account.

LOANS 1. Home loan 2. Personal loan 3. Car loan 4. Two wheeler loan 5. Commercial vehicle loan 6. Loans against securities 7. Farm equipment loans 8. Construction equipment 9. Office equipment loan 10. Medical equipment loans

Financials (as of March 31, 2007) Profits: USD 715 mln Assets: USD 79 bn Employees: over 33,000

18

CARDS: 1. Credit card 2.Debit cum ATM card 3. Travel card

INVESTMENTS: ICICI Bank Tax Saving Bonds Government of India Bonds Investment in Mutual Funds Initial Public Offers by Corporate Investment in "Pure Gold

AWARDS AND RECOGNITION FOR ICICI BANK LTD

1998 www.icicibank.com got commended rating from the Financial Times, London for two successive years. Cyber Corporate Award by the Economic Times and Micro land Limited for making the best use of Internet for commercial purpose. 1999 Best IT usage Award by TCS Limited and Computer Society of India. Asian Banking Award by the Asian Banker's Association for record collections under the Resurgent India Bonds Scheme.

19

2000 Best Bank Award by Global Finance. I-payment was selected as a finalist in the commercial credit product or services category in the Asian Banking Awards Featured amongst the best 15 bank web sites in the world reviewed by Forbes Global.

2001
Best Retail Bank in India from the Asian Banker for the second year running. Product Innovation Award for Kid-e-bank account from the Asian Banker.

2002
Best Managed Bank in Asia in a poll by Euro money. India's top 5 most respected companies - Business World Excellence in Retail Banking award by Asian Bankers Journal. Bank of the Year from the Emerging Markets by the Banker Magazine

of UK.
Bank of the Year 2002, in India, by the Banker Magazine of UK. Best Consumer Internet Bank in India by Global Finance. Best Bank in India by Global Finance.

20

2003
Best Multi-Channel Strategy 2003 by the Banker, UK. Bank of the Year 2003 in India by the Banker, UK. Bank of the Year 2003 in India by Global Finance. DM Review Magazine -World Class Solution Award 2003 in the

Business Intelligence category for ICICI Bank's Teradata enterprise data warehouse solution.
Best Consumer Internet Bank in India by Global Finance. Best Integrated Consumer Bank Site in the Asia /Pacific Region

by Global Finance.
Best Foreign Exchange Bank in India by Global Finance. Best Trade Finance Bank in India by Global Finance. Excellence in Retail Financial Services Award 2003 by The Asian

Banker Business Today Selected ICICI Bank as one of the 16 Best Managed Companies in India.

2004
Best Consumer Internet Bank in India by Global Finance Best Corporate / Institutional Internet Bank and Emerging Market Bank in India by Global Finance. Best Domestic Commercial Bank in India by Asiamoney. Best Overall Foreign Exchange Bank in India by Asiamoney.

21

OBJECTIVES OF THE STUDY

To emphasize the importance of securing higher level of customer satisfaction and thereby build a better image of the bank, which would have to increase the business of the bank.

To identify the customer preferences and expectations from ICICI bank.

Identify the relationship between size of the customers and ranking of the bank products. To rank the services provided by the ICICI bank.

Determining the market ranking by customer of ICICI bank account holders.

22

SCOPE OF THE STUDY

The main aim of the study is to find out the future demand, customer satisfaction, customer preferences and marketing techniques to be followed.

The study mainly focuses on the customer preferences on banking services for ICICI bank. It is based on the aspect how the customer will react for the changes in the market.

The decision to open an account influences the marketing policies of the bank regarding its product, services, promotion and location of the bank. Various available media, window display, issue of handbills and outdoor advertising may be utilized to attract the customer to make their decision to opening an account.

Yesterday, the account holder received a few services from the bank, but today the account holders are receiving numerous products and services (24 hour banking, ATM, phone banking).

23

This study has been conducted to know the effectiveness of ICICI bank. From this study we can identify the customer preferences for ICICI bank, By knowing how many people are willing to open an account, How many customers are satisfied with the products and services provided by ICICI bank, and To know the marketing techniques which they can adopt for increasing the customer goodwill.

From these studies we can identify the awareness of the customers about the services provided by the bank. The study mainly concentrates on the customer preferences and aim to identify the critical factors that influenced the customer to open an account.

This study refers to the customers who are having savings a/c and current a/c and connected to business.

Area of the study was conducted within the limit of Allahabad city. The study was conducted to cover customer preferences on banking services for ICICI bank. 200 samples were taken and all projections and interpretation were based on the respondents.

24

LIMITATIONS OF THE STUDY

1.

Most of the respondents were working on predetermined appointments.

2.

Time was valued for them; therefore respondents come out with hesitated answers.

3.

Translation of some of the question to regional language may have taken away some of the meaning of what customer meant.

4.

Time was a major constraint so the number of respondents where restricted to 200.

5.

Survey conducted was restricted within the city of Allahabad.

25

RESEARCH METHODOLOGY

The purpose of research is to discover answer to question through the application of scientific procedures. The core aim research is to find out the truth which is hidden and which has not been discovered as yet. RESEARCH DESIGN:

Research design is the plan, structure and strategy of investigation conceived as to obtain answer to research questions and control variance. Research design stands for advanced planning of methods to be adopted for collecting the relevant data and the techniques to be used in their analysis keeping in view the objective, of the research.

The present study is based on survey and fact -findings enquire with the customer preferences of banking services. The research conducted is basically descriptive in nature in the sense that it attempts to portray accurately the state of affairs as it exists at present.

26

RESEARCH METHOD:

Survey method was used for the research. Since data collection required greater investigation and also greater degree of accuracy, it was possible through survey using structured questionnaires. RESEARCH INSTRUMENT QUESTIONNAIRE:

A structured questionnaire has been used for data collection from ICICI customers. The questionnaire contained open ended, multiple choice question. The questionnaire was set in accordance with objective of the study.

Questionnaire was constructed with the objective of getting information from the ICICI customers and improves the customer services provided by the bank.

27

SAMPLING UNIT: The sampling unit considered of customer preferences of ICICI bank.

SAMPLING SIZE: Being a study on customer preferences and to improve the customer service it was felt that 200 customers of ICICI bank would be adequate to obtain a fair view of ICICI customer in Allahabad city. SAMPLING TECHNIQUE: The sampling technique adopted for the purpose of the study was convenience sampling.

PILOT STUDY: The pilot study was conducted with 20 customers. The response from the respondents was encouraging. The questionnaire was slightly modified and the survey was taken-up for other customers. The questionnaire was kept as simple as possible.

28

ANALYTICAL TOOLS

The following statistical tools have been used to prove the hypothesis: 1. Weighted average method 2. Percentage 3. Chi-square 4. ANNOVA table

WEIGHTED AVERAGE METHOD

Proper weight age is to be given to various items the weights attached to each item being proportional to the importance of the item in the distribution. Weighted mean given the result equal to the simple mean if the weights assigned to each of the variety values is equal. Weighted average mean = Wx

W = the weights attached to variable values i.e. W1, W2Wn respectively. x = the variable values i.e. x1, X2 ... Xn

29

1) PERCENTAGE:
Refers to a special kind of ratio. Percentages are used in making comparisons between two or more series of data. Percentage are used to describe relationships, percentage can be used to compare the relative terms, the distribution of two or more series of data since the percentages reduce everything to be common base and there by allow meaningful comparisons, can be made.

Percentage =

Sample size * 100 Total no of respondents

2)

CHI-SQUARE:
The x2 test is one of the simplest and most widely used non-

parametric tests in statistical work. It makes no assumptions about the population being sampled. The quantity x2 describes the magnitude of discrepancy between theory and observation, i.e., with the help of x2 test we can know whether a given discrepancy between theory and observation can be attributed to chance or whether it results from the inadequacy of the theory to fit the observed facts. It x2 is zero; it means that the observed and expected frequencies completely coincide.

30

The greater the value of x2, the greater would be the discrepancy between observed expected frequencies.

The formula for computing chi-square is:

Where,

o = observed frequency.
E

= expected or theoretical frequency.

31

TABLE-l
1. GENDER CLASSIFICATION

Sex Male Female Total

Frequency 130 70 200

Percent 65 35 100.0

Source - Computed

The above table indicates that 65%respondents in the gender are Male, remaining 35% of the respondents are female.

32

1. Gender Classification 140 120 N o . o f R esp o n d en ts 100 80 60 40 20 0 Male Sex Female 70 Frequency 130

33

TABLE-2
2. AGE WISE CLASSIFICATION

Age Below 25 26-45 Above 45 Total

Frequency 96 57 47 200

Percent 48.0 28.5 23.5 100.0

Source - Computed

The above table indicates that 48% of the respondents in the age group below 25years, 28.5% of the people are between 26-45 and remaining 23.5% of the respondents are above 45years.

34

2. Age wise Classification 120 100 N o . o f R esp o n d en ts 80 60 40 20 0 Below 25 26-45 Age Above 45 57 47 Frequency 96

35

TABLE-3
3. EDUCATION WISE CLASSIFICATION

Education Metric Under Graduate Post Graduate Professional Total

Frequency 58 73 40 29 200

Percent 29.0 36.5 20.0 14.5 100.0

Source - Computed

The above table indicates that 36.5% of the respondents are graduates, followed by 29% of the respondents are undergraduates, 20% of the respondents are post graduates and 14.5% are professionals.

36

3. Education wise Classification 80 70 N o . o f re s p o n d e n t s 60 50 40 29 30 20 10 0 Metric Under Graduate Post Graduate Education Professional 58

73

40

37

TABLE-4
4. OCCUPATION WISE CLASSIFICATION

Occupation Business Professional Service Others Total

Frequency 74 71 21 34 200

Percent 37.0 35.5 10.5 17 100.0

Source - Computed

The above table indicates that 37% of the respondents are doing business, 35.5% are professionals, 17% of the respondents are in others group and 10.5% of the respondents are in the service.

38

4. Occupation wise Classification 80 70 N o . o f R esp o n d en ts 60 50 40 30 20 10 0 Business Professional Service Others Occupation 21 34

74

71

39

TABLE-5
5. INCOME WISE CLASSIFICATION

Income Level Below 15,000 15,001-25,000 25,001 and above Total

Frequency 110 60 30 200

Percent 55 30 15 100

Source - Computed

The above table indicates that 55% of the respondents are earning below Rs 15,000 per month, 30% of the respondents are getting between Rs 15,001-25,000 and only 15% of the respondents are getting more than Rs 25,000.

40

5. Income wise Classification 120 100 N o . o f R esp o n d en ts 80 60 60 40 20 0 Below 15,000 15,001-25,000 Income Level 25,001 and above 30

110

41

TABLE-6
6. TYPE OF ACCOUNT CLASSIFICATION

Type of account Saving a/c Current a/c Total

Frequency 167 33 200

Percent 83.5 16.5 100.0

Source - Computed

The above table indicates that 83.5% of the respondents are having savings account and 16.5% of the respondents are having current account in the bank.

42

6. Type of Account Classification 180 160 N o . o f R esp o n d en ts 140 120 100 80 60 40 20 0 Saving a/c Type of Account Current a/c 33 Frequency 167

43

TABLE-7
7. MOTIVATED TO OPEN

Frequency Neighbors Friends/relatives Family members Company/ Salesmen Total 28 49 27 96 200

Percent 14.0 24.5 13.5 48.0 100.0

Source - Computed

The above table indicates that 48% of the respondents are motivated to open an account by the company/sales person of a bank, 24.5% of the respondents are motivated by friends/relatives, 14% are motivated by the neighbors and remaining 13.5% of the respondents are motivated by the family members.

44

7. Motivated to open Classification

120

100

96

80

60 49 40 28 20 27

0 Neighbors Friends/relatives Family members Company/Salesmen

45

TABLE-8
8. PREFFERED MODE OF SERVICE CLASSIFICATION

Preferred service Phone Banking Internet Banking Doorstep Banking Tele Banking ATM Total

Frequency 55 24 18 16 87 200

Percent 27.5 12.0 9.0 8.0 43.5 100.0

Source - Computed

The above table indicates that 43.5% of the respondents prefer ATM, 27.5% prefer phone banking, 12% are using internet banking, 9% are using doorstep banking and only 8% are preferring tele banking.

46

8. Preferred Mode of Service Classification 100 90 80 70 60 50 40 30 20 10 0 Phone Banking Internet Banking Doorstep Banking Tele Banking ATM 24 55

87

n o . o f R esp o n d en ts

18

16

Preferred Service

47

TABLE-9
9. AWARENESS OF SERVICES CLASSIFICATION

Awareness Recurring deposit Bank@home Youngster account NRI Easy deposit card Total

Frequency 134 10 15 27 14 200

Percent 67.0 5.0 7.5 13.5 7.0 100.0

Source - Computed

The above table indicates that 67% of the respondents are aware of the recurring deposit service, 13.5% of the respondents are aware of NRI services, 7.5% are aware of youngster account services, 7% of the respondents are aware of EASY DEPOSIT CARD and only 5% of the respondents are aware of BANK@HOME.

48

9. Aw areness of Services Classfication 160 140 120 100 80 60 40 20 0

N o . o f R esp o n d en ts

134

Frequency 15 27 14

10

s it

NR Ea sy de po s it

I m nt po ho de @ nk rr i n Ba cu Re Yo un gs te ra g
Aw areness

cc

ou

ca

rd

49

TABLE-l0
10. RATE OF CUSTOMER SERVICE CLASSIFICATION

Rate of services Fair Average Good Total

Frequency 28 43 129 200

Percent 14.0 21.5 64.5 100.0

Source - Computed

The above table indicates that 64.5% of the respondents rate the customer service as GOOD, 21.5% of the respondents rate the service as AVERAGE and 21.5% of the respondents rate the service as FAIR.

50

10. Rate of Customer Service Classification 140 120 N o . o f R esp o n d en ts 100 80 Frequency 60 40 20 0 Fair Average Rate of Services Good 28 43

129

51

TABLE-11
11. RECOMMEND OR SUGGEST OTHERS TO OPEN ACCOUNT

Recommend or Suggest others Yes No Not sure Total

Frequency 162 28 10 200

Percent 81 14 5 100

Source - Computed

The above table indicates that 81% of the respondents are ready to suggest opening an account in ICICI bank, 14% of the respondents are not ready to suggest and remaining 5% are not sure about it.

52

11. Recommend or Suggest Others to Open Account 180 160 N o . o f R esp o n d en ts 140 120 100 80 60 40 20 0 Yes No Recommend or Suggest Not sure 28 10 Frequency

162

53

CHI-SQUARE 1 MODE OF SERVICES * RATE OF CUSTOMER SERVICE CROSS TABULATION Mode of service Phone Banking Internet Banking Doorstep Banking Tele Banking ATM Total Frequency Oi Ei Oi Ei Oi Ei Oi Ei Oi Ei Oi Ei Fair 5 7.7 6 3.4 6 2.5 5 2.2 6 12.2 28 28.0 Customer Service
Average Good

Total 55 55.0 24 24.0 18 18.0 16 16.0 87 87.0 200 200.0

Percentage 27.5 12.0 9.0 8.0 43.5 100

14 11.8 5 5.2 6 3.9 6 3.4 12 18.7 43 43.0

36 35.5 13 15.5 6 11.6 5 10.3 69 56.1 129 129.0

Source Computed O = OBSERVED VALUE ; Ei = EXPECTED VALUE

HYPOTHESIS : NULL HYPOTHESIS, H0 : There is no significant relation between the mode of service and rate of customer service.

54
ALTERNATIVE HYPOTHESIS, H1 : There is significant relation between the mode of service and rate of customer service. OBSERVED (O) 5 6 6 5 6 14 5 6 6 12 36 13 6 5 69 EXPECTED (E) 7.7 3.4 2.5 2.2 12.2 11.8 5.22 3.99 3.4 18.7 35.5 15.5 11.6 10.3 56.1 (O-E) 7.29 6.76 12.25 7.84 38.44 4.84 0.04 4.41 6.76 44.89 0.25 66.25 31.36 28.09 166.41 (O-E)/E 0.9476 1.9882 4.9000 5.6400 3.1508 0.4101 0.0769 1.1307 1.9882 2.4005 0.0704 0.4032 2.7030 2.7270 2.9663 31.5020

The calculated value is 31.5020 The degree of freedom is 8 The table value is 15.5 Since the calculated value is greater than the table value H0 is rejected and H1 is accepted. CONCLUSION: It can be concluded that mode of service and rate of customer services are dependent.

55

CHI-SQUARE 2 CUSTOMER SERVICE * RECOMMEND OR SUGGEST CROSS TABULATION Customer Service Fair Average Good Total Frequency Recommend Or Suggest
Yes No

Total Percentage

Oi Ei Oi Ei Oi Ei Oi Ei

20 25.5 38 39.1 124 117.4 182 182.0

8 2.5 5 3.9 5 11.6 18 18.0

28 28.0 43 43.0 129 129.0 200 200.0

14.0 21.5 64.5 100

Source Computed O = OBSERVED VALUE ; Ei = EXPECTED VALUE

HYPOTHESIS : NULL HYPOTHESIS, H0 : There is no significant relation between the customer service and recommend or suggest.

56
ALTERNATIVE HYPOTHESIS, H1 : There is significant relation between the customer service and recommend or suggest.

OBSERVED (O) 20 38 124 8 5 5

EXPECTED (E) 25.5 39.1 117.4 2.5 3.9 11.6

(O-E) 30.25 1.21 43.56 30.25 1.21 43.56

(O-E)/E 1.1862 0.0309 0.3710 12.100 0.3100 3.7551 17.7532

The calculated value is 17.7532 The degree of freedom is 2 The table value is 5.99 Since the calculated value is greater than the table value H0 is rejected and H1 is accepted.

CONCLUSION: It can be concluded that customer service and recommend or suggest are dependent.

57 WEIGHTED AVERAGE METHOD Total number of respondents for each attributes = 200

No. of Respondents Rank Services Ambience of bank Location of Bank Personal Attention Processing Time Documentation Procedure 40 52 53 44 11 46 33 56 51 15 46 46 46 35 26 49 40 23 59 29 19 29 22 11 119 1 2 3 4 5

Source Computed Formula: W = Wi i Wi Where, Wi = weight given to the ith cell i = number of respondents in the ith cell

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Weight given: Rank Weight 1 5 2 4 3 3 4 2 5 1

Services Ambience of Bank Location of Bank Personal Attention Processing Time Documentation procedure

Wi i 639 639 695 658 370

Wi i/ Wi 43.60 42.60 46.33 43.87 24.67

Rank 3 4 1 2 5

INFERENCE: Among the services personal attention is ranked first, processing time is ranked second, ambience of bank is ranked third, location of bank is ranked fourth and documentation procedure is ranked fifth.

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WEIGHTED AVERAGE METHOD Total number of respondents for each attributes = 200

No. of Respondents Rank Services Phone Banking Doorstep Banking ATM Internet Banking Tele Banking 34 6 139 12 8 88 32 34 33 14 53 69 17 35 29 15 54 10 90 33 10 39 0 30 116 1 2 3 4 5

Source Computed Formula: W = Wi i Wi Where, Wi = weight given to the ith cell i = number of respondents in the ith cell

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Weight given: Rank Weight 1 5 2 4 3 3 4 2 5 1

Services Phone Banking Doorstep Banking ATM Internet Banking Tele Banking

Wi i 721 512 902 507 365

Wi i/ Wi 48.06 34.13 60.13 33.8 24.3

Rank 2 3 1 4 5

INFERENCE: Among the services ATM is ranked first, phone banking is ranked second, doorstep banking is ranked third, internet banking is ranked fourth and tele banking is ranked fifth.

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ANNOVA HYPOTHESIS: NULL HYPOTHESIS, H0: There is no significant relation between the monthly income and type of account. ALTERNATIVE HYPOTHESIS, H1 : There is significant relation between the monthly income and type of account. ANNOVA TABLE
Service Phone Banking INCOME GROUP Below 10,000 10,001 15,000 Above 15,000 Total Doorstep Banking Below 10,000 10,001 15,000 Above 15,000 Total ATM Below 10,000 10,001 15,000 Above 15,000 Total Internet Banking Below 10,000 10,001 15,000 Above 15,000 Total Tele Banking Below 10,000 10,001 15,000 Above 15,000 Total N 146 44 10 200 146 44 10 200 146 44 10 200 146 44 10 200 146 44 10 200 MEAN 3.34 3.77 3.70 3.46 3.34 3.34 2.80 3.32 3.54 3.93 4.00 3.65 3.61 3.27 3.90 3.55 3.37 3.48 4.00 3.43 STANDARD DEVIATION .569 .522 .675 .591 .637 .645 .789 .654 .666 .334 .000 .616 .592 .451 .316 .574 .654 .505 .000 .622

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CALCULATED TABLE:
Services Sum of squares Between 6.891 groups Within 62.704 groups 69.595 Total Between 2.792 groups Within 82.363 groups 85.155 Total Between 6.451 groups Within 69.049 groups 75.500 Total Between 5.126 groups Within 60.374 groups 65.500 Total Between 3.870 groups Within 73.005 groups 76.875 Total Degree of freedom 2 197 199 8 197 199 2 197 199 2 197 199 2 197 199 1.935 .371 5.222 .000 2.563 .306 8.363 .000 3.226 .351 9.203 .000 1.396 .418 3.339 .037 Mean Square 3.446 .318 F 10.825 Sig. .000

Phone Banking

Doorstep Banking

ATM

Internet Banking

Tele Banking

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PHONE BANKING: The calculated value is 10.825 The table value is 2.9957 Since the calculated value is greater than the table value H0 is rejected and H1 is accepted. DOORSTEP BANKING: The calculated value is 3.339 The table value is 2.9957 Since the calculated value is greater than the table value H0 is rejected and H1 is accepted. ATM: The calculated value is 9.203 The table value is 2.9957 Since the calculated value is greater than the table value H0 is rejected and H1 is accepted. INTERNET BANKING: The calculated value is 8.363 The table value is 2.9957 Since the calculated value is greater than the table value H0 is rejected and H1 is accepted.

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TELE BANKING: The calculated value is 5.222 The table value is 2.9957 Since the calculated value is greater than the table value H0 is rejected and H1 is accepted.

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FINDINGS

It was observed from the table that 65% of the respondents are male and followed by 35% are female respondents. It was observed from the table that 48% of the respondents are aged below 25 years, and followed by 28.5% of the respondents are aged between 26-45 years and others are aged above 45 years. It was observed from the table that 36.5% of the respondents are graduates, followed by 29% of the respondents are

undergraduates, 20% of the respondents are post graduates and 14.5% are professionals. It was observed from the table that 37% of the respondents are doing business, 35.5% are professionals, 17% of the respondents are in others group and 10.5% of the respondents are in the service. It was observed from the table that 55% of the respondents are earning below Rs 15,000 per month, 30% of the respondents are getting between Rs 15,001-25,000 and only 15% of the respondents are getting more than Rs 25,000.

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It was observed from the table that 83.5% of the respondents are having savings a/c and current a/c holders account for merely 16.5%. It was observed from the above table that 48% of the respondents are motivated to open an account by the company/sales person of a bank, 24.5% of the respondents are motivated by

friends/relatives, 14% are motivated by the neighbors and remaining 13.5% of the respondents are motivated by the family members. It was observed from the above table that 43.5% of the respondents prefer to use ATM, followed by 27.5% of respondents prefer phone banking, only 12% of the customers use internet banking, 9% use doorstep banking and finally 8% of the respondents are using tele banking. It was observed from the above table that 67% of the respondents have awareness about recurring accounts, 13.5% are aware about NRI and followed by 5% of the respondents have awareness about youngster a/c and easy deposit card. It was observed from the above table that 64.5% of the respondents rate customer service as GOOD, 21.5% of the

respondents rate as AVERAGE and followed by 14% rated as FAIR.

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It was observed from the above table that 81% of the respondents are ready to suggest opening an account in ICICI bank, 14% of the respondents are not ready to suggest and remaining 5% are not sure about it. It was observed from the above table that 46.33% of the respondents are considering personal attention as a main factor and 43.87% of the respondents consider processing time as secondary. It was observed from the above table that 60.13% of the respondents rank ATM service as first, followed by 48.06% rank the phone banking service as second.

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SUGGESTIONS The upper middle class whose income level is between 15,001 to 25,000 should be made target group. The professional cadre should be attracted with more viable and flexible accounting procedure so as to form the major group for transaction. ATM and phone banking must be given the most priority for promotional strategy, since most of the respondents prefer to go for phone banking but they should be brought into confidence and security. The Bank has to continue promotion through direct marketing channel by recruiting more people and widening the area of operation. People are not aware of the benefits provided by ICICI Bank. To create more publicity, more campaigns should be promoted. Student respondents were willing to open account. In order to attract them, more student oriented schemes should be adopted.

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CONCLUSION The results and findings of this study clearly explain the fact that an in-depth study has been conducted and all the objectives set for this research work has been fully accomplished.

The results and findings of this study A study on customer preferences towards banking services if ICICI Bank in Allahabad city, mainly on our customers, customers behavior and decisions are not constant.

Middle class people are also more satisfied due to a wide range of schemes and services. Their expectations, perception and preferences were clearly analyzed in our study.

ATM and phone banking must be given the most priority for promotional strategy. Since most of the respondents preferred to go for phone banking, they should be brought into the confidence to do the transaction more securely.

Thus, all major activities of the study have been analyzed and accomplished successfully in this report.

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BIBLIOGRAPHY 1: 2: Marketing Management - Phillip Kotler Marketing Research Boyd

www.icicibank.com www.google.co.in

ANNEXURE
A STUDY OF CUSTOMER PREFERENCES ON BANKING SERVICES OF ICICI BANK IN ALLAHABAD 1. 2. 3. 4. 5. Name: Address: Sex: Male Age: Below 25 26-35 36-45 Above 45 Education: Under graduate Graduate Post graduate Professional Others 6. Occupation: Business Professional Service Professional 7. Monthly Income: Below 10,000 10,001 15,000 20,001 25,000 Above 25,000 Others Female

71

15,001 20,000

8.

What type of account you are holding in ICICI bank? Savings a/c Current a/c

72

9.

Rank the factor, which you look for opening an account in ICICI bank? Please rank one being the highest priority. Ambience of bank Processing time Location of bank Personal attention

Documentation procedure 10. Who motivated to open an a/c? Neighbors Friends Relatives Company Salesmen Family members

11. Rank the order of service you will look forward from ICICI bank? Phone banking ATM Tele banking Doorstep banking Internet banking

12. Which is your preferred mode of service in ICICI bank? Phone banking ATM Tele banking Doorstep banking Internet banking

73 13. How do you find the services provided by ICICI bank? SERVICES Phone banking Doorstep banking ATM Internet banking Tele banking Excellent Good Average Fair Poor

14. Are you aware of these services provided by ICICI bank (tick those services you are aware of)? Recurring deposit Easy deposit card 15. How would you rate the customer service offered by ICICI bank? Excellent Fair Good Poor Average Youngster account Bank @ home NRI

16. Would you recommend or suggest ICICI bank to your friends and relatives? Yes No 17. If NO, please specify the reasons

18. Your comments & suggestions to improve the customer services offered by ICICI bank

74