INSTITUTE OF MANAGEMENT STUDIES

GHAZIABAD
A Study Of Customer Perception Of Service Quality In Banking Sector In
Deutsche Bank AG.

Dissertation Report Submitted Towards Partial Fulfillment Of

Post Graduate Diploma In Management
(Approved by AICTE Govt. Of India)
Academic Session
2015-2017

Under The Guidance Of:

Faculty Guide:
Dr. Ruchi Sharma
Professor, Marketing

Submitted By:
Kanika Mittal
BM- 015113

ACKNOWLEDGEMENT

Project work is never the work of an individual. It is more a combination of views and ideas,
suggestions and contribution and work. This project also bears the imprint of many people.
Thus one of the most pleasant parts of writing this report is the opportunity to thank those who
have contributed towards it.
I would take this opportunity to express a deep sense of gratitude towards my project
mentor Dr. Ruchi Sharma, for her altruistic guidance, monitoring and constant encouragement
throughout the course of this project. She was always there to listen and to give advice. She
showed me the most appropriate way to formulate the objectives of the study and then to
accomplish them. It would not be an exaggeration to remark that without her help, the whole
project would have been difficult to pursue.
Lastly, I thank almighty, my parents, brother, and friends for their constant
encouragement without which this assignment would not have been possible.

TABLE OF CONTENTS
1. Acknowledgement
2. Executive Summary
3. Introduction
4. What is banking sector?

5.

History of Banking Sector

6. Deutsche Bank AG
7. Company Overview
8. Service Quality
9. Literature Review
10. Research Methodology
11. Method for conducting Exploratory Research
12. Types of research designs used
13. Exploratory Research
14. Descriptive Research
15. Method for conduction Conclusive Research
16. Data Analysis Techniques

EXECUTIVE SUMMARY
Todays finicky banking customers will settle for nothing less. The customer has come to
realize somewhat belatedly that he is the king. The customers choice of one entity over
another as his principal bank is determined by considerations of service quality rather than any
other factor. He wants competitive loan rates but at the same time also wants his loan or credit
card application processed in double quick time. He insists that he be promptly informed of
changes in deposit rates and service charges and he bristles with customary rage if his bank is
slow to redress any grievance he may have.
He cherishes the convenience of impersonal net banking but during his occasional visits to the
branch he also wants the comfort of personalized human interactions and facilities that make
his banking experience pleasurable. In short he wants financial house that will more than just
clear his cheque and updates his passbook: he wants a bank that cares and provides great
services.
In the days of intense competition, the banks are no different from any other consumer
marketing company. It has become essential for the service firms in general and banks in
particular to identify what the customer's requirements are and how those customer
requirements can be met effectively. In the days where product and price differences are
blurred, superior service by the service provider is the only differentiator left before the banks
to attract, retain and partner with the customers. Superior service quality enables a firm to
differentiate itself from its competition, gain a sustainable competitive advantage, and enhance
efficiency.
The benefits of service quality include increased customer satisfaction, improved customer
retention, positive word of mouth, reduced staff turnover, decreased operating costs, enlarged
market share, increased profitability, and improved financial performance. The construct of
service quality has therefore been a subject of great interest to service marketing researchers.
'Service Quality is the difference between customers' expectations for service performance
prior to the service encounter and their perceptions of the service received.' According to Gefan
Service quality is the subjective comparison that customers make between the qualities of
service that they want to receive and what they actually get.' Parasuraman says, 'Service quality
is determined by the differences between customer's expectations of services provider's
performance and their evaluation of the services they received.
Service quality is 'the delivery of excellent or superior service relative to customer
expectations. Service quality is recognized as a multidimensional construct. While the number
of dimensions often varies from researcher to researcher, there is some consensus that service

quality consists of three primary aspects: outcome quality, interaction quality, and physical
service environment quality. Outcome quality refers to the customer's assessment of the core
service which is the prime motivating factor for obtaining the services (e.g. money received
from ATM). Interaction quality refers to the customer's assessment of the service delivery
process, which is typically rendered via a physical interface between the service provider, in
person, or via technical equipment, and the customer. It includes, for instance, the consumer's
evaluation of the attitude of the service providing staff. The physical service environment
quality dimension refers to the consumer's evaluation of any tangible aspect associated with the
facilities or equipment that the service is provided in/ with. It includes, for example, the
physical conditions of an ATM machine.
The most popular dimensions of service quality--features five dimensions: tangibles,
reliability, responsiveness, empathy, and assurance. The tangibles dimension corresponds to
the aforementioned physical environment aspect, the reliability dimension corresponds to the
service outcome aspect, and the remaining three represent aspects of interaction quality
RATER is an instrument that might be used to define and measure banking service quality and
to create useful quality-assessment tools.
The RATER may finally provide the following benefits to the central bank:
1 It is the first approach to add and mix the customers religious beliefs and cultural values
with other quality dimensions.
2 It provides for multi-faced analysis of customer satisfaction.
3 It links quality with customers satisfaction and service encounter.
4 It provides information at several levels, already organized into meaningful groupings.
5 It is a proven approach, which results in usable answers to meet customers needs.
6 It is empirically grounded, systematic and well documented.
DIMENSIONS OF SERVICE QUALITY
TANGIBILITY: This dimension deal with modern looking equipments and visual appealing
part of banks.
RELIABILITY: This dimension has a direct positive effect on perceived service quality and
customer satisfaction in banking institutions. Banks must provide error free service and secure
online transactions to make customers feel comfortable.
RESPONSIVENESS: Customers expect that the banks must respond their inquiry promptly.
Responsiveness describes how often a bank voluntarily provides services that are important to
its customers. Researchers examining the responsiveness of banking services have highlighted
the importance of perceived service quality and customer satisfaction.

 ASSURANCE: Customer expects that the bank must be secured and the behaviour of the
employees must be encouraging.
EMPATHY: individual attention, customized service and convenient banking hours are very
much important in todays service.

In order to achieve better understanding of service quality in banking sector, the proposed five
service quality dimensions are conceptualized to illustrate the overall service quality of the
banking in relation to customers and providers perspective.
Banking was in the sector featuring medium goods and higher customer producer interactions,
since in banking, consumers and service providers interact personally and the use of goods is at
a medium level. Hence, in banking, where there are high customer-producer interactions, the
quality of service is determined to a large extent by the skills and attitudes of people producing
the service.
In the case of services, because customers are often either direct observers of the production
process or active participants, how the process is performed also has a strong influence on the
overall impression of the quality of service. A well-performed service encounter may even
overcome the negative impression caused by poor technical quality as well as generate positive
word-of-mouth, particularly if customers can see that employees have worked very hard to
satisfy them in the face of problems outside their control. Employees are part of the process,
which connects with the customer at the point of sale, and hence employees remain the key to
success at these service encounters or moments of truth. It is these encounters with
customers during a service that are the most important determinants of overall customer
satisfaction, and a customers experience with the service will be defined by the brief
experience with the firms personnel and the firms systems. The rudeness of the bank s
customer service representative, the abruptness of the employee at the teller counter, or the lack
of interest of the person at the check deposit counter can alter ones overall attitude towards the
service, perhaps even reversing the impression caused by high technical quality.
Another important service quality factor, competence, is defined by whether the bank performs
the service right the first time, whether the employees of the bank tell customers exactly when
services will be performed, whether the bank lives up to its promises, whether customers feel
safe in their transactions with the bank and whether the employees show a sincere interest in
solving the customers problems. In short, this dimension is related to the banks ability to
perform the promised service accurately and dependably. Performing the service dependably
and accurately is the heart of service marketing excellence. When a company performs a
service carelessly, when it makes avoidable mistakes, and when it fails to deliver on promises
made to attract customers, it shakes customers confidence in its capabilities and undermines
its chances of earning a reputation for service excellence.

INTRODUCTION
Bank plays an important role in the economic development of a country. It is a financial
institution that accepts deposits and channels those deposits into lending activities either
directly or through capital markets. A bank connects customers which have capital deficits to
those customers with capital surpluses. The banking industry in India is facing certain
challenges i.e. challenges of quality service, customer satisfaction, customer retention,
customer loyalty, Quality service plays a major role in achieving customer satisfaction, and
creating brand loyalty in banking sector.
The Government of India, after independence had to focus on many areas among which one of
the important tasks was economic development of the country. In this context, the Industrial
policy resolution in 1948 focused on mixed economy, which played an active role in
development of different sectors including banking and finance. A major step in this direction
was the nationalization of banks in 1948.The Banking Regulation Act was enacted which
empowered the Reserve Bank of India (RBI) to regulate, control and inspect the banks in India.
In other words all the banks in India fell under the jurisdiction of Reserve Bank of India under
the Banking Regulation Act.
The Government of India nationalized private banks in 1969 and later in 1980 in order to have
better control over this sector. Government of India controls around 91% of the banking
business in India. In early 1990s, the then prime minister of India P.V Narsimha Rao liberalized
the sector by giving licenses to a small number of private banks, which came to be known as
new generation tech-savvy banks. Among these banks were, Global Trust Bank (Now acquired
by Oriental Bank of Commerce), UTI Bank (now re-named as Axis Bank), ICICI Bank and
HDFC Bank. The banking sector in India constitutes government banks, private banks and
foreign banks.
In the era of Liberalization, Privatization, and Globalization (LPG) banks play a dynamic role
in contributing to the economic development of the country. Some of the contributions of
banks to the economy of the country are discussed below:
Facilitator for Monetary Policy: The fiscal and monetary policy of a country has greater
impact on its economic development, and a well-developed banking system is pre-requisite for
successful implementation of the monetary policy.
Promoting Capital Formation: Banks are the reservoirs of capital providing loans to the
individuals and business. Pooling of financial resources and formation of capital is encouraged
by banks by way of deposits and other activities. This capital is utilized by entrepreneurs and
contributes for the economic development of the country.

Encourages Innovation: Entrepreneurship and Innovation go hand-in-hand. Banks encourage

entrepreneurship by attractive credit, which empowers them towards innovation.
Monetization: The coining of currency or printing of banknotes is done by the central bank. In
other words; banks are the manufacturers of money which is important for the economy.
Influence Economic Activity: Banks influence the rate of interest in the money market
through its supply of funds. It can influence a monetary policy with low-interest-rates which
will tend to stimulate economic activity.
Banking sector has become so important that the absence of banking industry leads to
stagnation in economic development of the country, the savings would sit idle in our homes,
the entrepreneurs would not be in a position to raise money, innovation of new products or
business models will get affected. Ordinary people having dreams of new car or house will not
be able to hpurchase-which will affect automobile and real estate business. The banking
industry is facing rapid changes in the market, such as: new technologies, economic
uncertainties, fierce competition, more demanding customers and the changing climate which
lead to an unprecedented set of challenges. Banking is a customer oriented service industry
which has witnessed a radical shift in the market power.
The effectiveness and efficiency became the buzzword of the success of banking operations
and its proper functioning particularly with respect to providing services to the customers.
Service is an invisible thing which is indispensable from the person who extends it. An
efficient or effective service is one which is extended appropriately by identifying and
understanding the needs of the individual customer from time to time. Customer service is a
dynamic interactive process which needs continuous improvement. With the advancement of
information technology and communication system, the whole world has been reduced to a
global village.
The customers at the present juncture are well exposed to unstoppable innovations in
communication technology. He/she is aware of the kind of service level available around the
world and thus expects the best from his/her bank. Customer service is not only a critical
function but plays a vital role for the business. It is the next most important business strategy.
The improved customer service will definitely increase profitability. A bank can be said as
customer oriented if its various organizational activities like organizational restructuring,
staffing, and coordination are geared up to fulfill the needs of customers.
During the past two decades or so, regulatory, structural and technological factors have
significantly changed the banking environment in India. In a milieu which becomes
increasingly competitive, service quality as a critical measure of organizational performance
continues to compel the attention of banking institutions. The interest is largely driven by the
realization that higher service quality results in customers satisfaction and loyalty, greater
willingness to recommend to someone else, reduction in complaints and improved customer
retention rates

In the era of globalization and liberalization, economic reform has become an imperative to
remain in the main stream of global economy. In this regard, banking sector being the
backbone of the economy cannot maintain status quo. It is legitimately feared that the
privileged status, which banks enjoyed for the last three decades, has already been changed
with the entry of new players in the form of private and foreign banks. Under these
circumstances, the banks will have to face pronged challenges to retain the existing customers
and to create new customers. However, success rate depends on the innovative strategies
adopted by the banks including better customer services and adequate fulfillment of customer
expectations. Thus, customer satisfaction is quite a complex issue and there is a lot of debate
and confusion about what exactly is required and how to go about it.

Deutsche Bank AG
Deutsche Bank AG is a German global banking and financial services company with its
headquarters in the Deutsche Bank Twin Towers in Frankfurt. It has more than 100,000
employees in over 70 countries, and has a large presence in Europe, the Americas, Asia-Pacific
and the emerging markets. In 2009, Deutsche Bank was the largest foreign exchange dealer in
the world with a market share of 21 percent. The company is a component of the Euro Stoxx
50 stock market index.
The bank offers financial products and services for corporate and institutional clients along
with private and business clients. Services include sales, trading, research and origination of
debt and equity; mergers and acquisitions (M&A); management products, such as derivatives,
corporate finance, wealth management, retail banking, fund management, and transaction
banking.
On 26 July 2011, along with its second quarter earnings report, Deutsche Bank reported that
Anshu Jain, head of investment banking and Juergen Fitschen, head of the German business,
would replace Josef Ackermann as co-CEOs starting in 2012. Fears that Deutsche Bank could
neglect its German roots and expand risk-taking activities prompted key members of the
supervisory board to opt for the dual CEO model. Deutsche Bank is listed on both the
Frankfurt (FWB) and New York stock exchanges (NYSE).
On 7 June 2015, the co-CEOs, Juergen Fitschen and Anshu Jain, both offered their resignations
to the bank's supervisory board, which resignations were accepted. Anshu Jain's resignation
took effect on 30 June 2015, but he provided consultancy to the bank until January 2016.
Juergen Fitschen will temporarily continue as joint CEO until 19 May 2016. The appointment
of John Cryan as joint CEO was announced, effective 1 July 2015; he will become sole CEO at
the end of Juergen Fitschen's term.

In January 2014 Deutsche Bank reported a 1.2 billion ($1.6 billion) pre-tax loss for the fourth
quarter of 2013. This came after analysts had predicted a profit of nearly 600 million,
according to FactSet estimates. Revenues slipped by 16% versus the prior year. According to
the Scorpio Partnership Global Private Banking Benchmark 2014 the company had
US$384.1bn of assets under management, an increase of 13.7% on 2013.

SERVICE QUALITY
Customer is vital for the development of trade, industry and service sector particularly in
financial services. Therefore, the significance of customer service in the banking sector came to
force to compete in a market driven environment. Measuring service quality in the service
sector particularly in the banking sector is more difficult than measuring the quality of
manufactured goods. The service sector as a whole is very heterogeneous and what is
heterogeneous may hold true for one service and may not hold for another service sector.
Each bank is having a variety of services. Due to this differentiation, services in this industry
could not be standardized, moreover these services are intangible in nature which could not be
compared or seen. The concept of customer satisfaction and service quality is interrelated with
each other. Moreover satisfaction of customer depends upon service quality and service quality
is increasingly offered as a strategy by marketers to position themselves more effectively in the
market place. Due to the advent of e-banking, quality of service has been improved a lot as
compared to traditional banking services. Internet banking, Mobile banking, automated teller
machine, electronic fund transfer has totally changed the way of providing services by the
banks.

Service Focus Areas of Banking Industry

There are a variety of services like retail banking, corporate banking, investment banking,
commercial banking, personnel banking, wholesale banking, internet banking etc.
As customers become more sophisticated, therefore, it becomes essential to consider the use of
technology to respond to their continuous needs. Banking is an industry highly involved with
the customers. Customers in developing economies seems to keep the technological factors
of services as the yardstick in differentiating good & bad services and the human factor the
employees seem to play a lesser role in discriminating the quality of service for banks. The
variations in services offered by the banks develop excellence for service quality. Banking is no
longer regarded as business dealing with money transaction alone, but it also seem as a
business related to information on financial transaction.

Customers at the corporate level or at retail level have always been important for the banks. As
electronic banking is becoming more prevalent, level of customer satisfaction is also changing
the scenario of technological environment.
Informational technology in the form of e-banking plays a significant role in providing better
services at lower cost. Several innovative IT based services such as Automated Teller Machine
(ATM), Internet banking, Smart Cards, Credit Cards, Mobile banking, Phone banking,
Anywhere-Anytime banking have provided number of convenient services to the customer.
So as the service quality improves, the probability of customer satisfaction increases. Increase
satisfaction in turn increases the mutual understanding, customer retention and a bond of trust
between customers and banks. The banks which are providing these services on a wider scale
to customers are more reputed in the eyes of customers. But at the same time technology based
product is different in public and private sector banks. Bank automation and electronic banking
is fast in private sector comparative to public sector.
E-banking is an improvement over traditional banking system because it has reduced the cost
of transaction processing, improved the payment efficiency, financial services and also has
improved the banker-customer relationship. The relationship between e-banking and service
quality can be studied with the level of satisfaction. E-banking plays a pivotal role in giving
satisfaction to the customers because e-banking fills the gap between the expected and
perceived service quality. So in order to fill this gap, banks should find ways of making
electronic services more accessible and by allowing the customer to verify the accuracy of the
e-banking transactions.
There are number of reasons due to which customer satisfaction on account of e-banking has
improved. The reasons are as follows;
1 Customer can withdraw funds, transfer funds anytime, anywhere they want
2 Accessibility has been extended through technological development as it allows customers to do
business from their home and office.
3 It makes the banking activities and transaction very simpler to understand
4 There is no requirement of direct control with bank, as services can be operated wherever
customer wants.
5 It has reduced the waiting time of the customer;
6 Availability of employees at all times is not required as these services are provided 24 hours a
day, seven days a week.
7 Internet based services has enabled the corporate and retail customers to transact from home,
office and travelling.
8 Online fund transfer has enabled the customer to transfer funds from one bank to another or
within the same bank at same time.
9 Communication, interaction between the bank and customer has been improved due to ebanking.

Service Quality is a business administration term used to describe achievement in service. It

reflects both objective and subjective aspects of service. The accurate measurement of an
objective aspect of customer service requires the use of carefully predefined criteria. The
measurement of subjective aspects of customer service depends on the conformity of the
expected benefit with the perceived result. This in turn depends upon the customer s
imagination of the service they might receive and the service providers talent to present this
imagined service.
Dimensions of Service Quality
A customer will have an expectation of service determined by factors such as
recommendations, personal needs and past experiences. The expectation of service and the
perceived service result may not be equal, thus leaving a gap. Ten determinants which may
influence the appearance of a gap were described by Parasuraman, Zeithaml and Berry:
Competence is the possession of the required skills and knowledge to perform the service.
Courtesy refers to factors such as politeness, respect, consideration and friendliness of the
contact personnel; consideration for the customers property and a clean and neat appearance
of contact personnel.
Credibility refers to factors such as trustworthiness, believability and honesty. It involves
having the customers best interest at heart. It may be influenced by company name, company
reputation and the personal characteristics of the contact personnel.
Security represents the customers freedom from danger, risk or doubt including physical
safety, financial security and confidentiality.
Access refers to approachability and ease of contact.
Communication mean both informing customers in a language they are able to understand
and also listening to customers. A company may need to adjust its language for the varying
needs of its customers. Information might include for example, explanation of the service and
its cost, the relationship between services and costs and assurances as to the way problems are
effectively managed. Knowing the customer means making an effort to understand the
customers individual needs, providing individual attention, recognizing the customer when
they arrive and soon.
Tangibles are the physical evidence of the service, for instance, the appearance of the
physical facilities, tools and equipment used to provide the service; the appearance of
personnel and communication materials and the presence of other customers in the service
facility.

Reliability is the ability to perform the promised service in a dependable and accurate
manner. Responsiveness refers to the willingness of employees to help customers and to
provide prompt timely service.

LITERATURE REVIEW

1
Impact of Service Quality in Commercial Banks on the Customers Satisfaction: An
Empirical Study, October 2011.By: Dr. S. Fatima Holy Ghost; Dr. M. Edwin Gnanadhas
Service quality is important mainly in the service business enterprises. Growth and
development of the enterprise majorly depends on the service quality. As service quality is the
only way to satisfy majority customers, enterprises concentrate more on the service quality
today. Quality in service is also interrelated to other behavioral outcomes of the customers. The
study understands the various customer perceptions about the service quality factors like
Assurance, Empathy, Responsiveness, Reliability and Tangibility in the banking industry and
the satisfaction level towards the banks. It also analyses the impact of these service quality
factors on the satisfaction level based on the demographic differences.
The study collects the perceptions about the various service quality factors through purposive
sampling method and analyses the impact of the service quality factors. The data were
collected on the basis of the various demographics like, rural urban area, education standards,
income level, occupation difference, age groups etc. And finally, study concludes saying about
the existence of a close bond between the service quality factors and the customer satisfaction
level. And also it is found that the impact of the service quality factors on customer satisfaction
was varying with the demography of the customers.

2
Customer perception on Service Quality in Banking sector: with Special Reference
to Indian Private Banks in Moradabad Region, February 2012.By: Vibhor Jain, Dr Sonia
Gupta, Smrita Jain
This study was conducted to understand the perception of service quality in the banking sector
and also to evaluate how it helps in enhancing the reputation and attract customer loyalty. With
the increased competition among the private sector banks, this study would help in defining a
strategy to achieve the competitive edge and also satisfied customers. And hence service
quality has been used to position the banks in the tough market. The study was administered
through the private banks like ICICI, HDFC, KOTAK& INDUSIND BANKS.

The study has taken the SERVQUAL tool for measurement of the service quality offered by the
private players in the banking industry. The main assumption is Service quality is
multidimensional concept and these dimensions help in measuring the service quality. The
responses were collected based on the five dimensions namely, assurance, reliability,
responsiveness, tangibility and empathy.
The study identifies that Reliability and Responsiveness are the most relevant factors for the
service quality perception and they have compared the individual scores with the average mean
value scored by the private banks under the study. The study found that among the four banks
under the study, HDFC bank has the highest quality perception in terms of the various
dimensions, though there is only one branch of this bank located in Moradabad. It is followed
by ICICI, KOTAK & INDUSIND. The study concludes with suggestions for the private banks
to be very competitive in the industry.
3
Service Quality Delivery and Its Impact on Customer Satisfaction in the Banking
Sector In Malaysia, October 2010.By: Jayaraman Munusamy, Shankar Chelliah and
HorWaiMun
The study focuses on the measurement of the customer satisfaction through delivery of service
quality in banking sector in Malaysia. And it highlights the parameters in banking industry for
improvement in delivery of service quality. And also gives a snapshot of some appropriate
methods that have been used for the measurement of customer satisfaction.
The methodology followed was data collection from random respondents of the general
population. Considering the fact that different group of people from different backgrounds have
different expectation level, a large respondent population was targeted for the research. The
questionnaire was collected from 117 respondents from different backgrounds.
The study found that assurance has a positive relationship with customer satisfaction, but
without significant effect. Reliability is the timeliness and accuracy in service provided, and
says reliability does not have much impact on customer satisfaction. Tangibles include the
appearance of the company, and the study found that it has high positive correlation with
customer satisfaction. The study says that there is no much relation between empathy and
satisfaction. Responsiveness is the timely response, which the customers get from their service
providers. The study suggests that responsiveness factor is highly related to customer
satisfaction.

RESPONSIVENES

TANGIBILIT

EMPATHY

RELIABILITY

ASSURANCE

1. Dimensions of Service Quality

In order to achieve better understanding of service quality in banking sector, the proposed five
service quality dimensions are conceptualized to illustrate the overall service quality of the
banking in relation to customers and providers perspective.
Banking was in the sector featuring medium goods and higher customer producer interactions,
since in banking, consumers and service providers interact personally and the use of goods is at
a medium level. Hence, in banking, where there are high customer-producer interactions, the
quality of service is determined to a large extent by the skills and attitudes of people producing
the service.
In the case of services, because customers are often either direct observers of the production
process or active participants, how the process is performed also has a strong influence on the
overall impression of the quality of service. A well-performed service encounter may even
overcome the negative impression caused by poor technical quality as well as generate positive
word-of-mouth, particularly if customers can see that employees have worked very hard to
satisfy them in the face of problems outside their control.
Employees are part of the process, which connects with the customer at the point of sale, and
hence employees remain the key to success at these service encounters or moments of truth.
It is these encounters with customers during a service that are the most important determinants
of overall customer satisfaction, and a customers experience with the service will be defined
by the brief experience with the firms personnel and the firms systems. The rudeness of the
banks customer service representative, the abruptness of the employee at the teller counter, or
the lack of interest of the person at the check deposit counter can alter ones overall attitude
towards the service, perhaps even reversing the impression caused by high technical quality.
Another important service quality factor, competence, is defined by whether the bank performs
the service right the first time, whether the employees of the bank tell customers exactly when

services will be performed, whether the bank lives up to its promises, whether customers feel
safe in their transactions with the bank and whether the employees show a sincere interest in
solving the customers problems. In short, this dimension is related to the banks ability to
perform the promised service accurately and dependably. Performing the service dependably
and accurately is the heart of service marketing excellence. When a company performs a
service carelessly, when it makes avoidable mistakes, and when it fails to deliver on promises
made to attract customers, it shakes customers confidence in its capabilities and undermines
its chances of earning a reputation for service excellence.
It is very important to do the service right the first time. In case a service problem does crop up,
by resolving the problem to the customers satisfaction, the company can significantly improve
customer retention. However, companies fare best when they prevent service problems
altogether and fare worst when service problems occur and the company either ignores them or
does not resolve them to the customers satisfaction.
Performing the service accurately is perhaps the most important factor in service quality
excellence. The cost of performing the service inaccurately includes not only the cost of
redoing the service but also the cost associated with negative word-of-mouth generated by
displeased customers. In case of services, the factory is the field. Again, services are intangible
and hence the criteria for flawless services are more subjective than the criteria for defect-free
tangible goods. Hence for most services, customers perceptions of whether the service has
been performed correctly, and not provider-established criteria, are the major determinants of
reliability.
The service quality factor tangible is defined by whether the physical facilities and materials
associated with the service are visually appealing at the bank. These are all factors that
customers notice before or upon entering the bank. Such visual factors help consumers form
their initial impressions. A crucial challenge in service marketing is that customers cannot see a
service but can see the various tangibles associated with it - all these tangibles, the service
facilities, equipment and communication materials are clues about the intangible service. If
unmanaged, these clues can send to the customers wrong messages about the service and
render ineffective the marketing strategy of the company. On the other hand, improving quality
through tangibles means attention to the smallest details that competitors might consider trivial.
Yet, these visible details can add up for customers and signal a message of caring and
competence.
Customers may reveal new aspects of service quality in banking that are important to them, and
these would have to be incorporated in the scale so as to further explore the concept of service
quality in the banking arena.

RESEARCH METHODOLOGY
As service quality reflects the way the banks are performing, this study attempts to explore the
perception of customers in respect to the services provided by the banks. The entry of private
and foreign banks, the nature of functioning of these banks and the promotional attempts of
these banks has changed the landscape of the Banking sector in India. In respect to customer
services there are notable perceived differences. Hence this study on customer service quality
of Indian banks looks for bringing out the differences between perceptions of customers of
these banks. This study is descriptive and analytical in nature.
Research objective: To Study of perception about service quality offered by bank.
To know in which service quality dimension the bank is performing well and in which
dimension it needs improvement.
Research Design: Type Of Research :- Exploratory Research
Conclusive Research
A. Method for conducting Exploratory Research :- Primary
Data:
The primary data was collected by means of a survey. Questionnaires were prepared and
customers of the banks at two branches were approached to fill up the questionnaires. The
questionnaire contains 20 questions which reflect on the type and quality of services provided
by the banks to the customers. The response of the customer and the is recorded on a grade

scale of strongly disagree, disagree, uncertain, agree and strongly agree for each question. The
filled up information was later analyzed to obtain the required interpretation and the findings.
Secondary Data:
In order to have a proper understanding of the service quality of bank a depth study was done
from the various sources such as books, a lot of data is also collected from the official websites
of the banks and the articles from various search engines like Google, yahoo search and
answers.com.
Qualitative Research: Direct Method
In-Depth Interview
B. Method for conduction conclusive research:I

Descriptive Research

Cross Sectional
Single Cross Sectional
II

Method for conducting:-

Survey
Target population: All customers of Deutsche Bank AG
III Sampling Element
Customers of Deutsche Bank AG (IV) Sample size:
Since the population is large the survey has been carried among a sample of 100
customers of Deutsche Bank AG.
(V) Sampling method:
Convenience method
C. Data Analysis Technique:
One sample t-test
Descriptive research
Anova

 Data Collection Tool:- Questionnaire