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On
CUSTOMER SATISFACATION ON PRODUCTS & SERVICES
PROVIDED
AT
HDFC BANK
by
( Mudasir Showkat )
A THESIS REPORT ON
BY
( Mudasir Showkat )
Master of business Administration
Introduction………………………………………………………….. 1.0
Background of study…………………………………………………...1.1
Profile…………………………………………......................................1.2
Questionnaire………………………………………………………….....1.5
References
1.0- INTRODUCTION
Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet
or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four
perspectives of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers,
customer satisfaction is seen as a key differentiator and increasingly has become a key element of business
strategy. Satisfaction with banking services is an area of growing interest to researchers and managers.
Building on the synthesis of existing literature on satisfaction and relationship marketing, this study
explores the satisfaction variables within the banking industry This study reinforces that customer satisfaction
is linked with performance of the HDFC BANK. Satisfaction is a multi-dimensional construct which has
been conceptualized as a prerequisite for building relationships and is generally described as the full meeting
of one's expectations (Oliver, 1980) and is the feeling or attitude of a customer towards a product or service
after it has been used. It has been attributed with three dimensions by (Crosby and Stevens, 1987)
namely, satisfactory interactions with personnel, satisfaction with the core service, and satisfaction with
the organization.
A. BANKING INDUSTRY-OVERVIEW:
The Indian banking market is growing at an astonishing rate, with Assets expected to reach US$1 trillion
by
2010. An expanding economy, middle class, and technological innovations are all contributing to
this
growth. The country’s middle class accounts for over 320 million people. In correlation with the growth
of
the economy, rising income levels, increased standard of living, and affordability of banking products
are
promising factors for continued expansion. The Indian banking Industry is in the middle of an IT
revolution, Focusing on the expansion of retail and rural banking. Players are becoming
increasingly
customer - centric in their approach, which has resulted in innovative methods of offering new banking
products and services. Banks are now realizing the importance of being a big player and are
beginning to focus their attention on mergers and acquisitions to take advantage of economies of
scale
and/or comply with Basel II regulation.“Indian banking industry assets are expected to reach US$1
trillion
by 2010 and are poised to receive a greater infusion of foreign capital,” says Prathima Rajan, analyst in
Celent's banking group and author of the report. “The banking industry should focus on having
asmall
number of large players that can compete globally rather than havinga large number of fragmented players.
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an
'in
principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the
RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994
in
the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank
commenced
operations as a Scheduled Commercial Bank in January 1995. HDFC is India's premier housing
finance
company and enjoys an impeccable track record in India as well as in international markets. Since
its
inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations
to
remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling
units.
HDFC has developed significant expertise in retail mortgage loans to different market segments and
also
has a large corporate client base for its housing related credit facilities .With its experience in the
financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC
was ideally positioned to promote a bank in the Indian environment. HDFC Bank began operations in 1995
with
a simple mission : to be a “ World Class Indian Bank.” We realized that only a single minded focus
on
product quality and service excellence would help us get there. Today, we are proud to say that we
are
well on our way towards that goal.
HDFC Bank offers a wide range of commercial and transactional banking services and treasury products to
wholesale and retail customers. The bank has three key business segments:
Wholesale Banking Services: The Bank's target market ranges from large, blue-chip manufacturing
Companies in the Indian corporate to small & mid-sized corporate and agric-based businesses. For these
customers, the bank provides a wide range of commercial and transactional banking services, including
working capital finance, trade services, transactional services, cash management, etc. The bank is also a
leading provider of structured solutions, which combine cash management services with vendor and
distributor finance for facilitating superior supply chain management for its corporate customers. Based
on its superior product delivery service levels and strong customer orientation, the Bank has made
significant inroads into the banking consortia of a number of leading Indian corporate including
multinationals, companies from the domestic business houses and prime public sector companies. It is
recognised as a leading provider of cash management and transactional banking solutions to corporate
customers, mutual Tunas, stock exchange members and banks.
WHOLESALE BANKING
Mutual Funds
Stock Brokers
Insurance Companies
Commodities Business
Trusts
• Retail Banking Services: The objective of the Retail Bank is to provide its target market customers a
full
of financial products and banking services, giving the customer a one-stop window for all
his/her
banking requirements. The products are backed by world-class service and delivered to the
customers
through the growing branch network, as well as through alternative delivery channels like ATMs, Phone
Banking, Net Banking and Mobile Banking.
RETAIL BANKING
NRI BANKING
• NetSafe • NetBanking
• BillPay • OneView
• InstaPay • InstaAlert
• DirectPay • ATM
• Visa Money • PhoneBanking
• Online Donation • Email Statements
• Branch Network
CUSTOMER SERVICE CENTERS: HDFC BANK has a total of 6 service centers throughout the
country.
These Customer Service Centers have the following services:-
►Applying for any of HDFC loan products and knowing detailed features of all the products.
►Using ATMs;
►Using Easy Pay Machine;
►Access to Call Centre;
►Access to Phone banking;
►Access to HDFC website;
Please show the extent to which you believe HDFC BANK has the feature described in the
statement. Write number that best shows your perceptions.
1 2 3 4 5 6 7
10. When you have a problem, HDFC shows a sincere interest in solving it. ( )
Thank you very much for your time, cooperation & patience
*****************************************************
1.6 LITERATURE REVIEW:
Overview
This study basically focuses on measurement of customer satisfaction related to Service offered and rendered
at
HDFC BANK. This study gives a bird’s eye view of the hard and soft services provided by HDFC
BANK
( retail ) to their customers. Recommending the services, rating the experience with HDFC BANK,
service
charges and suggestions were some of the aspects explored. Rating the products, handling of compliant
calls,
response time, repeat calls encounter and overall level of satisfaction were some of the issues were
also
discovered. Previous services literature also highlights the multi dimensionality of service quality, and
in
doing so focuses on two of its overriding dimensions (Levesque and McDougall, 1996; Gronroos, 1984;
McDougall and Levesque , 1994; Parasuraman et al., 1991). The first dimension includes the core
or
outcome aspects ( contractual ) of the service (e.g. reliability) and the second one includes the relational
or process aspects (customer employee relationship) of the service (e.g. tangibles, responsiveness,
assurance
and empathy (see for instance, Parasuramanet al., 1991 ). However, only a limited set of
empirical
research has reported the relationship between the two dimensions of service quality and
customer satisfaction. . A review of the literature also suggests that expectations for service quality
are
likely to be based on perceptions of excellence, whereas satisfaction judgments are likely to be based on
a
broad range of non - quality issues (Taylor and Baker, 1994; Patterson and Johnson, 1993; Rust and
Oliver,
1994).).
More than a decade ago, Parasuraman, Zeithaml and Berry (1988, 1991) conducted extensive studies in
different industries and developed the SERVQUAL instrument: a 22-item scale with a set of service quality
dimensions to quantify a customer’s assessment of a company’s service quality. Five key dimensions of service
quality — reliability, responsiveness, assurance, empathy and tangibles — have been identified and form the
foundation on which a lot of other studies on service quality have been built. SERVQUAL is widely recognized
and used, and it is regarded as applicable to a number of industries, including the banking industry (Yavas,
Bilgin, Shemuell, 1997). However, SERVQUAL has been subject to certain criticisms, including vagueness in
the definition of expectations, its dubious applicability in some industries (Teas, 1993), the need for expectation
measurement (Cronin and Tayer, 1992, 1994), and SERVQUAL’s dimensionality (Carman, 1990). Moreover,
the traditional service quality dimensions cannot directly apply to Internet banking, because it represents a
different and unique service delivery process.
SERVQUAL:
The SERVQUAL instrument will be the predominant method used to measure consumers’ perceptions of
service quality. It has five generic dimensions or factors that are stated as follows (van Iwaarden et al., 2003):
Service quality has been shown to be a significant predictor of behavioral intentions, e.g. likelihood of
recommending, repeat purchase, switching, and complaining (Bitner, 1990). Woodside, Frey and Daly (1989)
found that there is a significant correlation between service quality and repurchase behavior in the health care
industry. Findings from Dabholkar (1996) indicate that customers’ feelings correlate positively with the
intention to use. In light of these findings, the present study investigates the relationship between service
quality, customer satisfaction and future consumption behavior.
REFERENCE:
• Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1994), "Reassessment of expectations as a comparison
standard in measuring service quality: implications for future research", Journal of Marketing, Vol. 58, pp.
111-124.
• Raj Kumar "Customer satisfaction in Indian banking: a case of Yamuna Nagar District in Haryana". Political
Economy Journal of India.
• Ioanna, P. D. (2002). The Role of Employee Development in Customer Relations: The Case of UK Retail
Banks. Corporate Communication, 7(1), pp. 62-77.
• Ennew, C. T and Binks, M. R. (1996). The Impact of Service Quality and Service Characteristics on Customer
Retention: Small Business and their Banks in the UK. British Journal of Management, 7, pp. 219-230.
• Australian Consumer Association (2005), “Bank satisfaction survey”, Australian Choice Magazine, available
at: www.choice.com.au/printFriendly.aspx?ID=104697 (accessed 8 July 2006), .
• Colgate, M., Hedge, R. (2001), "An investigation into the switching process in retail banking services",
International Journal of Bank Marketing, Vol. 19 No.4/5, pp.201-12.
• Manrai, L.A., Manrai, A.K. (2007), "A field study of customers' switching behaviour for bank services",
Journal of Retailing and Consumer Services, Vol. 14 pp.208-15.
• Interrogating SERVQUAL: a critical assessment of service quality measurement in a high street retail bank,
Karin Newman, Professor, Middlesex University Business School, London, UK
• Andrius Plepys (2003), Customer satisfaction: review of literature and application to the product-service
systems” IIIEE
• , Vimi Jham A1 and Kaleem M. Khan A2, i nternational Journal of Financial Services Management Issue:
Volume 3, Number 3-4 / 2008
Article URL:
• http://www.emeraldinsight.com/10.1108/02652329910269211
• http://findarticles.com/p/articles/mi_qa3705/is_199401/ai_n8715466/
• http://www.sngscollege.info/Articles/Vasanthakumari.pdf
• www. hdfcbank.com