A STUDY ON THE EFFECTIVENESS OF SERVICE PROVIDED TO

CUSTOMERS OF BANK

( IOB ,INDIAN BANK,KARUR VYSYA BANK, SBI, CITY UNION BANK)

ABSTRACT:
Customers’ satisfaction is an ambiguous and abstract concept and the actual manifestation Of
the state of satisfaction will vary from person to person and product/service to product/service.
The state of satisfaction depends on a number of both psychological and physical variables
which Correlate with satisfaction behaviour’s such as return and recommend rate. The study
concludes that, on average, a majority of customers are satisfied with the present functioning
of the bank but would definitely be delighted if the bank changed its interface with the
customers to become more cognitive, emotional pleasing and well connected. Determining the
level of real customer satisfaction level is one of the major challenges for each and every
business establishment in today’s business world .This paper helps to study the customer
satisfaction of banks in Thanjavur, Trichy, Thiruvarur district. Accordingly, a questionnaire
was designed to obtain information about their satisfaction levels.

KEYWORDS: level of satisfaction, behaviour, service quality.

INTRODUCTION:
In a competitive market place where businesses compete for customers, customer satisfaction
is seen as a key differentiator and increasingly has become a key element of business strategy.
Total quality management is structured system for satisfying customers and suppliers by
integrating the business environment through quality circles, continuous improvement and
breakthroughs with development while changing organizational culture. India was operating in
a protected environment and was dominated by nationalised banks.

LITERATURE REVIEW:
If poor customer service is realized at any time in a business, it will lead to customer
dissatisfaction. If more customers are retained at an increased rate, a business can be able to realize
profits increased by 25% on an average scale (Griffin, 1995). Tangibility, Reliability,
Responsiveness, Assurance and Empathy are used to measure the gap between customers' expected
service level and perceived service level by performing the gap analysis (Parasuraman et al., 1985).
Buell et al. (2010), in the retail banking industry in the U.S, the industry is found to be too
competitive and customized in offering a better service quality and price to the customers and
hence there is a positive association between customer value and service sensitivity when the
competitor lacks in providing high quality services to the customers. All the five dimensions of
service quality influenced customer satisfaction substantially and improving the service quality
elements is widely considered as the main ancestor which could effectively bring significant
contributions on customer satisfaction. Sudhahar and Selvam (2007) studied about service quality
scale development in retail banking sector in India by measuring thirty four determinants with the
help of scaling procedure. The availability of service operations in banks and employees
performance are closely related to each other which directly influence customer perception towards
the bank.
 Customer satisfaction in today's marketing era is believed to strongly connect with
understanding consumer behavior. To understand the consumer buying pattern as firms are looking
to influence them, each organization seeks help from external agencies and various sources to
acquire the required information via the very common consumer behavior research analysis.
Ultimately, there are certain motivating and influencing factors which play important role in
convincing a customer to choose a product and the same factors are also responsible for the
consumer satisfaction after the post purchase behavior. Consumers prefer products not base on the
functional features anymore, rather products are preferred by them based on the environmental
impacts and some other dynamic factors (Mont and Plepys, 2003). Also, one of the extremes,
customer satisfaction is always intended to influence buyers' repurchase intention through positive
word of mouth interaction; meanwhile being the other extreme, dissatisfaction leads to negative
word of mouth communication. Moreover, satisfied customers always suggest others to go for the
product while dissatisfied customers will also recommend others in huge numbers but in the
context of negative marketing, most probably dissatisfied customers recommend others not to use
the product (La Barbera and Mazursky, 1983).

OBJECTIVES OF THE STUDY:

The study has been undertaken with regard to the following objectives:
1. To identify degree of importance attached to various dimensions of service quality viz.
reliability, responsiveness, empathy, tangibles & assurance by the customers.
2. To compare the public, private and foreign banks on the basis of customers’ expectations &
perceptions of quality of services.
3. To find the gap between customers’ expectations and perceptions of quality of services for
public, private and foreign banks.
4. To evaluate the performance of public, private & foreign banks on the basis of quality of
services.
5. To make suggestion for improvement of quality of services in public, private and foreign
banks

RESEARCH HYPOTHESIS:
H1: service quality rating is independent of variables such as age, gender,
employment, income, city, bank in which account is held type of bank, type of account &
deviation of account held.
H0: service quality rating is not independent of variables such as age, gender,
employment, income, city, bank in which account is held, type of bank, type of account &
deviation of account held.

METHODOLOGY:
A well-structured questionnaire has been prepared and distributed to the selected bank
customers in the selected areas. The questionnaire has been divided into two kinds. One is
scale with 5 statements relating to customers perception on the quality of service that the
bank offer and 5 statements corresponding to their level of satisfaction. 50 customers from
these banks have been selected and administered servqual questionnaires containing the
determinants of service quality in banks.
DATA COLLECTION:
Data has been collected to the respondents by approaching them personally. In order to see
their view and responses frankly on the quality of services and customer needs on time taken
withdrawal of money, depositing money, processing of loan applications. The study has been
conducted among these banks of Thanjavur , Thiruvarur, Trichy namely city union bank, icici
bank, Indian bank, Indian overseas bank, Karur vysya bank. These banks are purposely
selected for their involvement in shaping and satisfying the customer perception in the
economic destiny.
1. SELECT YOUR BANK:

S.no Bank name Respondents %

1 IOB 10 20 Select your bank
2 Indian bank 16 32
3 SBI 8 16
16
10 8 6 10
4 karur vysya bank 6 12
IOB INDIAN BANK SBI KARUR VAYSA CITY UNION
5 city union bank 10 20 BANK BANK

Select your bank:

INTERPRETATION: From above it can be stated that the name of the bank where the customers
having their account.

2. LOCATION OF YOUR BANK

S.no Location respondents % location of your…

1 trichy 8 16
2 Thanjavur 28 56 8 28 12 2
3 Kumbakonam 12 24 TRICHY THANJAVUR KUMBAKONAM THIRUVARUR

4 Thiruvarur 2 4
Interpretation: From the above it can be stated that the selected location of the bank where
the customers having their account.

3. AGE.

S.no Respondent’s %
1
Age
18-20 20 40 age
2 21-30 22 44 20 22 4 4
3 31-40 4 8
18-20 21-30 31-40 41-50
4 41-50 4 8

Interpretation: From the above it can be stated that their age groups of the customers having
account in selected banks.
 3. REASON FOR OPENING ACCOUNT IN PARTICULAR BANK (PI TICK
WHEREVER IS APPLICABLE)
reason for opening…
S.no Attributes Respondents %
1 Quality of service 14 28 14 20 6 4 6
2 Nearness 20 40 QUALITY OF
SERVICE
NEARNESS ONLY BANK IN RECOMMENDED VILLAGE / GOVT.
THE AREA BY OTHERS OFFICIALS

3 Only bank in the area 6 12

4 Recommended by others 4 8
5 Village / Govt. officials 6 12

Interpretation: From the above it can be stated that 14% of customers opened their account
based on quality of service and 20% of the customers are seeing nearness of bank and for 6%
of customers it is the only bank in that area and for 4% of people it is recommended by others
and remaining 6% by village/ govt.officials.

4. PERSON WHO MOTIVATED TO SELECT THIS BANKS.

S.no Respondents % Person who…

1 Own 28 56 28 16 6
initiative
2 Friend 16 32 OWN INITIATIVE FRIEND BANK OFFICIAL
3 Bank 6 12
Official

Interpretation: A look at that chart shows that 28% of the people select the bank by their own
initiative and 16% of the people by their friends and 6% of people by the bank official

5. TYPES OF ACCOUNT MAINTAINED.

Types of account…
46 4
S.no Type Respondents %
1 SAVINGS BANK CURRENT ACCOUNT
Savings Bank 46 92
2 Current Account 4 8

Interpretation: A look at the chart shows that 46% people maintaining savings account and
4% people maintaining current account.
 6. TIME TAKEN FOR WITHDRAWAL OF CASH FROM ATM/ BANK.

S.no %
1
Timings
Less than 20 minutes
Respondents
28 56 Time taken for…
2 20-30 minutes 12 24
3 10 22 20 6 2
30-40 minutes 5
LESS THAN 20 20-30 MINUTES 30-40 MINUTES 40 MINUTES AND
4 40 minutes and more 5 10 MINUTES MORE

Interpretation: From the above table it is clear that the time taken for withdrawal of cash from
ATM/ Bank for 28% of people it took less than 20 minutes and for 20% of people it took 20-
30 minutes and for 6% of people it took 30-40 minutes and for only 2% of people it took more
than 40 minutes.

7. TIME TAKEN FOR DEPOSITING MONEY.

S.no Timings Respondents % Time taken for…

1 Less than 20 minutes 22 44
2 20-30 minutes 20 40
28 12 5 5
3 30-40 minutes 6 12
LESS THAN 20 20-30 MINUTES 30-40 MINUTES 40 MINUTES AND
4 40 minutes and more 2 4 MINUTES MORE

Interpretation: From above it can be stated that time taken for depositing the money, for 28%
of customers it took less than 20 minutes, 12% of customers it took 20-30 minutes, 5% of
customers it took 30-40 minutes, 5% of customers it took more than 40 minutes.

8. TIME TAKEN FOR PROCESSING LOAN APPLICATION

S.no Timings Respondents %

1 Less than 15 days 14 time taken for…
2 Not applicable 28
3 30-45 days 4 14 28 4 4
4 45 days and above 4 LESS THAN 15 DAYS NOT APPLICABLE 30-45 DAYS 45 DAYS AND ABOVE

Interpretation: From above it can be stated that the time taken for processing loan application
and for 14% of people it took less than 15 days and for 28% it is not applicable and for 4% it
took 30-40 days and remaining 4% it took 45 days and above.

9. ARE YOU SATISFIED WITH OVERALL PERFORMANCE OF YOUR BANK?

S.no
1
Opinion Respondents % satisfication for…
yes 42 42 8
2 no 8
YES NO

Interpretation: Out of 50 respondents 42% satisfied with overall performance of the bank and
remaining 8% not satisfied with overall performance of the bank.
 CONCLUSION:

The banking sector has under gone many changes the new economic policy based on
privatization, globalization and liberalizations adopted by government of India. Customer is the
king in the present day banking. Since the banks are providing tailor made services to the changing
needs of the ultra modern customer to face their stiff competition from the rival banks. Today the
customer services preference keep on changing at a rapid speed and their demands. For the banking
sector challenging and tough job for the bankers in retaining the existing customer base and
winning new customer. The aim of the bankers is to make the customers comfortably and happy to
achieve their targets. To achieve the highly challenging task of customers satisfaction bankers
turning to technology for help. Bankers are not only satisfying the customer but should also trigger
to attitude of the customers towards the bank. Each bank follow different procedure it is very
difficult to follow the customers. Even though the customer is well educated some time high
technology banking services hesitate the customer for the transaction. For the effective banking
transaction the banks should have good communication, soft skill must need. At every level of
delaying with the bank the customer the bank management need to educate the employees for the
banking activities and process. Universal banking procedure can help the customer for the better
transaction.

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