Comparative Study of Customer Satisfacti PDF

IRJMSH Vol 7 Issue 7 [Year 2016] ISSN 2277 – 9809 (0nline) 2348–9359 (Print)
Comparative Study of Customer Satisfaction Level for Government and

Private Banks Using SERVQUAL : Jabalpur
Dr. Beena Fernandez

Guest Faculty,Govt. OFK College, Jabalpur (M.P.), beena.fernandez1@gmail.com
This study has practical significance for banking policy makers for understanding the behavioral
intentions of their customers and using them for effectively positioning the service quality of
their banks.
The purpose of this paper is to investigate the service quality and its relationship to customer
satisfaction among the customers of HDFC Bank and Canara Bank. A modified SERVQUAL
scale is utilized to ascertain the functional dimensions of service quality specific to the industry
and service context under study. In addition, the study examines the differences in service quality
satisfaction and its impact on the behavioral intentions of customers.
Today all business organizations are facing tough competition there is no exemption for banking
industries. The banking industry like many other financial service industries is facing a rapidly
changing market, new technologies, economic uncertainties, fierce competition, and especially
more demanding customers; and the changing climate has presented an unprecedented set of
challenges. Customer service is one integral part of any facet of banking and it defines future of
any banking organization. In banking sector, the whole range of activity and generation of
Income swivels around the customer. From a very comfortable and peaceful environment, now
the Indian Banking Sector is characterized by stiff competition for the customer‟s satisfaction
and profit war between different banking groups i.e. (Private bank vs. Nationalized Bank). This
research tries to analyze the comparative analysis of customer satisfaction among these two
categories of banks – public and private sector banks using the list of service attributes based on
SERVQUAL method.
In the present research an effort has been made measure satisfaction level of customer to bank
located in Jabalpur. The main focus is done on whether private banks (HDFC BANK) bring
more satisfaction then public sector banks (CANARA BANK) to the people residing in Jabalpur
and what are those factors which are considered when people say they are satisfied.
Background of Study
The study begins with the discussion of the service quality concept, its importance to the banking
industry. The research will discuss on how the concept is being measured using the SERVQUAL
model. Furthermore, at the same time this study will highlight why it is of particular interest to
study the relation between service quality and customer satisfaction in banks.
Service quality is needed for creating customer satisfaction and service quality is connected
tocustomer perceptions and customer expectations. Quality in service is very important
especially for the growth and development of service sector business enterprises. 1It works as a
1
Rahaman, M.M., Abdullah, M., Rahman, A. (2011). Measuring Service Quality using SERVQUAL Model: A
Study on PCBs (Private Commercial Banks) in Bangladesh. Business Management Dynamics. 1(1). 1-11
International Research Journal of Management Sociology & Humanity ( IRJMSH ) Page 192
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factor of customer satisfaction.2Indian banking sector, whichis dominated by state-controlled

banks, has been facing formidable challenges. Due tothis new emerging competition,Indian
banks, especially PSBs, are trying their best to improve their performance and preparing to
compete in theemerging global market. New private sector banks and foreign banks have more
customer-centric policies, high qualityservices, newattractive schemes and computerized
branches. All these services attracted more and more customers totheir banks.In this context,
there is a need to examine the efficiency of public sector banks operating in India. Mainly,
competitioncan intensify and banks will become more efficient. The transaction cost of
customers could come down and a bankwhich is efficient, nimble and customer focused would
always be able to do better than others.3
One of the factors that can help to increase sales is customer satisfaction, because satisfaction
leads to customer loyalty4, recommendation and repeat purchase. Research hasshown repeatedly
that service quality influences organizational outcome such as performance superiority5,
increasing sales profit6and market share7, improving customer relations, enhance corporate
image andpromote customer loyalty8.Furthermore, service quality and customer satisfaction were
found to be related to customer loyalty throughrepurchase intentions9. Delivering qualityservice
to customers is a must for success and survival in today‟s competitive banking. Hence banks
have become more interested in the development of service quality measures. A lot of research
focuses on measuring service quality using the SERVQUAL MODEL developed by
Parasuraman.
Parasuraman had initially identified 97 attributes which were found to have an impact on service
quality10. These 97 attributes were the important criteria to enhance the customers‟ expectations
and perceptions on delivered service. However, all these attributes fit into ten dimensions and
later being condensed into five dimensions of service quality11 because of the overlap across the
ten criteria. Finally, the best five dimensions to measure the service quality are; tangibility,
reliability, responsiveness, assurance and empathy.
2
Ruyter, K D and Bloemer, J (1995), "Integrating Service Quality and Satisfaction: Paying in the Neck, or
Marketing Opportunity?" Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, Vol. 8, pp.
44-52
3
http://www.isesec.com/Admin/Research/1659808644_Indian%20Banking%20Industry.pdf
4
Wilson A., Zeithaml V.A., Bitner M.J., Gremler D.D. (2008) Services Marketing, McGraw-Hill Education
5
Portela, M.C.A.S., and Thanassoulis, E. (2005). Profitability of a sample of Portuguese bank branches and its
decomposition into technical and allocative components. European Journal of Operational Research, 162(3), 850-
866.
6
Levesque, T.J., and McDougall, G.H.G. (1996). Determinants of customer satisfaction in retail banking.
International Journal of Bank Marketing, 14(7), 12-20.
7
Fisher, A. (2001). Winning the battle for customers. Journal of Financial Services Marketing, 6(2), 77-83.
8
Ehigie, B. O. (2006). Correlates of customer loyalty to their bank: a case study in Nigeria. International Journal
Bank Marketing, 24(7), 494-508.
9
Caruana, A., Money, A.H. and Berthon, P.R. (2000). Service quality and satisfaction- the moderating role of value.
European Journal of Marketing, 34(11/12), 1338-1352.
10
Parasuraman, A., Berry, L.L & Zeithaml, V (1985). A conceptual model of service quality and the implications
for future research. Journal of Marketing Management, 49, 41-51.
11
Parasuraman, A., Zeithaml, V. & Berry, L (1988). SERVQUAL: A multiple item scale for measuring customer
perceptions of service quality. Journal of Retailing, 64(1), 12-40.
www.irjmsh.com
A SERVQUAL dimension is a good scale to measure the service quality performance in various
specific industries. In this regard, researcher uses this model because it takes deep attention on
customer‟s expectation and perception of service provided at an organization12.Parasuraman‟s
SERVQUAL model is widely used to measure perceived service quality in various industry such
as retailing, restaurants, banking, telecommunication, services, airline, catering, hotels, hospitals,
automotives, and education and so on.
Parasuraman et al. (1985) also found that the customer‟s perception of service quality depends
on the range of gap distance between the customer expects before receive a service in a service
centre and what he or she actually perceive after see and use the service by their own. Thus,
service quality is in fact defined as the gap between customers‟ expectation of service and their
perception of the service experience.
Background of Banks
CANARA BANK
Canara Bank with headquarter in Bangalore operates in four
segments, namely treasury operations, retail banking operations,
wholesale banking operations and other bankingoperations.The bank was
founded as 'Canara Bank Hindu Permanent Fund' by Shri
Ammembal Subba Rao Pai, with the vision. “A good bank is not only the financial heart of
the community, but also one with an obligation of helping in every possible manner to
improve the economic conditions of the common people.” It was established into a limited
company as 'Canara Bank Ltd.' in 1910 and became Canara Bank in 1969 after nationalization.
On 1st July 1906, Canara Hindu Permanent Fund Ltd. formally registered with a capital of 2000
shares of INR 50 each, with 4 employees.
Over the years, the Bank has been scaling up its market position to emerge as a major 'Financial
Conglomerate' with as many as nine subsidiaries/sponsored institutions/joint ventures in India
and abroad. As at September 2014, the Bank has further expanded its domestic presence, with
5507 branches spread across all geographical segments. Keeping customer convenience at the
forefront, the Bank provides a wide array of alternative delivery channels that include 7095
ATMs, covering 3833 centres. Several IT initiatives were undertaken during the year. The Bank
set up 132 hi-tech E-lounges in select branches with facilities like ATM, Cash Deposit Kiosk
with voice guided system, Cheque Deposit Kiosk, Self Printing Passbook Kiosk, Internet
Banking Terminal, Online Trading Terminal and Corporate Website Access. „Canara e-
Infobook‟ – an electronic passbook and banking related information facility was introduced on
mobile platforms - Android, Windows8 & iOS. The Bank also launched Canara Bank RuPay
Debit Card, Canara Club Card – Debit, Canara Secured Credit Card, Canara Elite Debit Card and
EMV Chip Cards under debit and credit cards. Online Savings Bank and PPF account opening
were introduced during the year. The Bank made several value additions under internet banking
and mobile banking services13.
Canara bank was established in Jabalpur district in the year 1976. It has 5 branches in Jabalpur.
Karamchand chowk branch is the main branch and has now been shifted opposite to the Jyoti
12
Shahin, A. (2005). SERVQUAL and Model of Service Quailty Gaps: A framework for determining and
prioritizing critical factors in delivering quality services, Department of Management, University of Isfahan, Iran,
p.1-10. Available on http://www.proserv.nu/Docs/Servqual.
13
http://www.canarabank.com/English/scripts/aboutus.aspx
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Talkies. The other branches are in Gorakhpur, Madan Mahal, Vijaynagar, SMECivil Line. It has
only 2 ATM‟s in Jabalpur.
Table 1 BANK DETAILS AS PER LEAD BANK REPORT
SEPTEMBER 2014
TOTAL GROWTH
DEPOSIT ADVANCES OVER
BANKS BRANCHES BUSINESS
LAST
2013 2014 2013 2014 2013 2014 YEAR
CANARA 5 171.56 255 36.4 62.14 207.96 317.14 109.18
HDFC 3 146.06 265.3 401.47 374.36 547.53 639.66 92.13
HDFC BANK
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 RBI‟s liberalisation 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. On May 23, 2008, the
amalgamation of Centurion Bank of Punjab with HDFC Bank was formally approved by Reserve
Bank of India to complete the statutory and regulatory approval process. As per the scheme of
amalgamation, shareholders of CBoP received 1 share of HDFC Bank for every 29 shares of
CBoP.
The bank is the first of its kind to receive an in-principle approval from RBI for establishment of
a bank in the private sector. Certificate of commencement of business was received on 10th
October 1994 from RBI. HDFC bank was established in Jabalpur district in the year 2003. It has
3 branches in Jabalpur. Shastri Bridge Gol Bazaar branch is the main branch. The other two
branches areVijay Nagar and Civil Line. It has 5 ATMs.
Research Questions
In this study, there are few questions have been generate to answer the following questions about
the service quality dimension (SERVQUAL) and customer satisfaction. The research study will
be guided by the following research question for the investigations as follows:
 What is the relationship between the service tangibility and customer satisfaction in the
banks?
 What is the relationship between the service reliability and customer satisfaction in the
banks?
 What is the relationship between the service responsiveness and customer satisfaction in
the banks?
 What is the relationship between the service assurance and customer satisfaction in the
banks?
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 What is the relationship between the service empathy and customer satisfaction in the
banks?
Research Objectives
This study is undertaken to investigate the relationship between the service quality and its impact
on customer satisfaction. It will focus on the relationship of the four (5) independent variables of
SERVQUAL model which are tangibles, reliability, responsiveness, assurance and empathy with
the identified dependent variable; customer satisfaction.
The objectives of the study are:
 To investigate the relationship between the service quality and customer
satisfaction.
 Assessing the service quality of Canara bank and HDFC bank using SERVQUAL
model
 To identify which is the best SERVQUAL dimension perceived by the customer
in banks.
Hypotheses of the Study
This study will test the following hypotheses:-

H1: There is a significant correlation between service tangibility and customer
satisfaction in banks.
H2: There is a significant correlation between service reliability and customer satisfaction
in banks.
H3: There is a significant correlation between service responsiveness and customer
satisfaction in banks.
H4:There is a significant correlation between service assurance and customer satisfaction
in banks.
H5:There is a significant correlation between service empathy and customer satisfaction
in banks.
Theoretical Framework
A theoretical framework consists of concepts, variables, definitions, and existing theories that are
used by researcher for particular study. According to Dr Norzaidi (2013)14, the selection of
variablesin a study must have the characteristicsthat can be measured and it is important
especially when creating and designinga questionnaire. Theoretical framework must demonstrate
an understanding of theories and concepts that are relevant to the topic of research paper.
Theoretical framework is not something that can be found readily in a literature. Researcher must
review course readings and pertinent literature such as journals and articles in order to search
related theories and analytic models that are relevant to SERVQUAL model. Selection of a
14
Examining factors that influence the usage of transact at palm (TAP) mobile banking in Malaysia,Journal of
Applied Science Research, 9(8), 4517-4526-Scopus
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theory should depend on its appropriateness, ease of application, and the explanation itself
(Trochim, 2006)15.
Figure 1: The theoretical framework of correlation between the dimension of

SERVQUAL and the satisfaction of customer’s in banks.
The framework above shows proposed framework to serve as foundation of this study. It is
modified from the gap model theory16. Purpose of this study is to examine that how tangibility,
reliability, responsiveness, assurance and empathy of service which are the independent variables
can bring impacton the dependent variables, customer satisfaction towards the service quality at
HDFC and Canara bank.
LITERATURE REVIEW
A literature review is a step-by-step process that involves the identification of published and
unpublished work from secondary data sources on the topic interest, the evaluation of this work
in relation to the problem and the documentation of this work17.
Savita (2013)18 suggested that banks should focus on functionality, security, privacy, monitoring
and maintenance of the ATM‟s.
Md. Abdul Muyeed (2012)19 in his study to evaluate the service quality in retail banking in the
developing countries in general and Bangladesh showed that customer‟s perception has reached
15
Trochim W.M.K. (2006). Research Methods Knowledge Based. Available
http://www.socialresearchmethods.net/kb/design.php
16
Zeithaml, V.A., Berry, L.L. and Parasuraman, A. (1993), “The nature and determinants of customer expectations
of service”, Journal of the Academy of Marketing Science, Vol. 21 No. 1, pp. 1-12
17
Sekaran, U. & Bougie, R. 2009. Research Methods for Business: A Skill Building Approach. Chichester: Wiley.
18
Paul Savita (2013), “ATM: The New Horizon of E-Banking,” Science, Technology and Arts Research Journal,
Vol. 2(2): pp 148-152.
19
Anber Abraheem Shlash Mohammad and Shireen Yaseen Mohammad Alhamadani,” Service quality perspectives
and customer satisfaction in commercial banks working in Jordan”, Middle Eastern Finance and Economics, Issue
14,PP: 60-72
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on highest in the prompt and accuracy in transactions followed by safety of customer‟s

investments and keep confidentiality of account and transactions and lowest in the service of
modern equipment and decor. Due to increasing competition the bank need to consider the weak
areas in order to meet customer perception about service quality.
Bahl,Sarita (2012)20 determined that security and privacy issues are the big issue in e-banking.
If security and privacy issues resolved, the future of electronic banking can be very prosperous.
Rao, K. Rama Mohana and Lakew, Tekeste Berhanu (2011)21 examines the service quality
perceptions of customers of public sector and private sector banks in the city of Visakhapatnam,
India. The author reveals that the Reliability and Assurance dimensions of service quality scored
the highest ratings while the Tangibles dimension got the lowest score. Moreover, the study
found a strong dissimilarity in service quality perceptions between customers of private sector
and public sector banks.
Kitti Tananitikul and Nuttawuth Muenjohn (2010)22 intended to determine set of service
quality and value dimensions that were vital importance to a government-owned bank (GOB)
and its customer satisfaction. Seven service key attributes of 22 item scale namely tangible,
reliability, responsiveness, assurance, empathy, price and differentiation are the statements
measuring customer‟s expectations and perceptions of service quality. Tools like mean, standard
deviation, t test and ranking method was used for the study and the result showed that customers
are most satisfied service dimension for service as reliability and it was one of the major policies
and strategies of bank. Tangible, responsiveness and empathy are three service dimensions have
significant differences in their perspectives. Tangible and price service dimension are most
important to them, they were currently least satisfied and bank need to improve the quality of its
services in order to meet the customer satisfaction.
Puja Khatri and Yukti Ahuja (2010)23 conducted a research study to explore the dimensions of
customer perceived service quality in the context and to study and understand the applicability of
servqual model to private and public sector banks and identify the critical variables that
customers seek from a quality of service delivery. Various service quality dimensions include
Tangible, Reliability, Responsiveness, Assurance and Empathy was made for the study. 122
sample respondents were used in Judgment sampling. Tools like Mean, Standard deviation,
student t-test have been used to find the credit facilities and insurance services in private sector
banks need to concentrate. Public sector banks need to improve their service quality by
improving their physical facility, infrastructure and giving proper training to their employees.
20
Bahl.Sarita, “Emerging Challenges in E-Banking Upheavals in Global Scenario”, RIJEB Volume 1, Issue 7(July)
ISSN: 2277 – 1018, 2012
21
Rao. K. Rama. Mohana and Lakew. Tekeste Berhanu, “Service Quality Perceptions of Customers: A Study of The
Customers‟ of Public Sector andPrivate Sector Commercial Banks in India”, International Journal of Research in
Commerce & Management, Volume No. 2 (2011), Issue No. 11(November)
22
Kitti Tananitikul and Nuttawuth Muenjohn, 2010, Re-Designing Banking Services: The Case Of A Government-
Owned Bank In Thailand, International Review of Business Research Papers Vol.6, No.1 February 2010, Pp.181-
193
23
Puja Khatri & Yukti Ahuja (2010).Comparative Study of Customer Satisfaction in Indian Public Sector and
Private Sector Banks. International Journal of Engineering and Management Sciences Vol. 1: 42-51.
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Wicks & Roethlein (2009)24quality has many different definitions and there is no universally
acceptable definition of quality. They claim it is because of the elusive nature of the concept
from different perspectives and orientations and the measures applied in a particular context by
the person defining it. In our study, quality must be well defined in the context of grocery stores
and must focus on various dimensions of both product and service. This therefore means the
definition of quality varies between manufacturing and services industries and between
academicians and practitioners. These variations are caused by the intangible nature of its
components since it makes it very difficult to evaluate quality which cannot be assessed physical
implying other ways must be outlined in order to measure this quality.
Isa and Amin (2008)25 claimed that most of the Islamic Bank‟s customers were satisfied with
the banks‟ overall service quality. The findings also indicated that the standard model of Islamic
banking service quality dimensions should include the following six dimensions; tangible,
reliability, empathy, responsiveness, assurance and compliance along with the good determinants
of satisfaction. They also revealed a significant relationship between service quality and
customer satisfaction.
Yongyui (2003)26 has presented a model for the relationship between service quality and bank‟s
reputation.According to the findings of this research, the fivefold dimensions of service quality
have direct effect on thebank‟s reputation. In addition, on the basis of this research‟s findings,
the bank‟s reputation plays an importantrole in determination of purchase, repeated purchase,
and customer loyalty. This issue has much moreimportance in banking industry, because service
quality cannot be accurately evaluated before purchasing.
Chakravarty (2003)27 found that there is ameaningful negative relation among service quality
dimensions, responsiveness, empathy, and reliability, withcustomer‟s tendency to abandon the
bank. This study in India‟s banks show that the concept of service quality indeveloping countries
is a multi-dimensional structure, and in fact the results clearly show that SERVQUALmodel
provides more evaluating information in relation with service quality gaps, than SERVPERF
scale.
Caruana (2002)28 concluded that customer satisfaction plays a mediator role in the effect of
service quality on service loyalty. In fact, service quality affects service loyalty through customer
satisfaction. In addition, results of this research show that service quality is an important gateway
to customer satisfaction, and explains 53% of the variance.
24
Wicks, A. M., & Roethlein, C. J. (2009). A Satisfaction-Based Definition of Quality Journal of Business &
Economic Studies, Vol. 15, No. 1, Spring 2009, 82-97.
25
Amin, M., and Isa, Z. (2008). An examination of the relationship between service quality perception and customer
satisfaction: A SEM approach towards Malaysian Islamic banking. International Journal of Islamic and Middle
Eastern Finance and Management, 1(3), 191-209.
26
Yongyui, W. (2003). The Antecedents of service quality and product quality and their influences on bank
reputation: evidence from the banking industry in China. Managing Service quality, 13(1), 72-83.
27
Chakravarty, S. (2003). Relationships and individual‟s bank switching behavior. Journal of EconomicPsychology,
1-21.
28
Caruana, A. (2002). Service Loyalty: The Effects of Service Quality and the Mediating role of Customer
Satisfaction. European Journal of Marketing, 36(7), 811-828.
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Anantharman, (2002)29 conducted an in-depth investigation of the relation between service

quality and customer satisfaction. They concluded by identifying five factors of service quality
that are considered by customers as critical. They are enumerated as follows;
1. Core service or service product – service content,
2. The human elements of the service delivery including reliability, responsiveness, assurances,
empathy, and service recovery – all a part of the human element when delivering the service,
3. Service delivery systemization which refers to the processes, procedures, systems and
technology that helps in making the provision of service in a seamless manner,
4. Service tangibles which refers to equipment, signage, employees‟ appearance and the man-
made physical environment characterizing the service – commonly called the „service space‟,
and finally,
5. Social responsibility which is the service provider‟s ethical behavior and activities. The above
study indicated the close relation between service quality and customer satisfaction in a way that
an increase in one factor leads to the increase in the other.
Johnston (1995)30 investigated the relation between the determinants of service quality and
outcomes of the zone of tolerance. He revealed that there are some determinants that are more
likely to be a source of dissatisfaction while others to be a source of satisfaction. He
demonstrated the following;
1. Some determinants of quality are superior to others,
2. The key sources of satisfaction of the bank‟s customers include attentiveness, responsiveness,
care and friendliness while the key sources of dissatisfaction include issues pertaining to
integrity, reliability, responsiveness, availability and functionality,
3. The sources of satisfaction enumerated above are not necessary the opposite of the sources of
satisfaction,
4. The intangible aspects of the staff-customer relation significantly impact service quality in a
negative and positive way,
5. Responsiveness is a key determinant of quality and is a key element in the provision of
satisfaction while the lack of it is a main source of dissatisfaction, and
6. Issues of reliability are a source of dissatisfaction as opposed to satisfaction.
From the above, it is evident that satisfaction can be achieved by providing the service in a
timely and efficient manner. The presence of satisfying factors may also lead to positive,
virtuous circles, supporting contact staff-customer relationship.
METHODOLOGY
Introduction
This chapter is focused on the approach of the study. Chapter Three will have discussion on
research design, data and information collection methods, the design of the questionnaire,
sampling design and so forth. On the other hand, the methods of data analysis which consists of
factor analysis, reliability test, descriptive statistics, mean aid on development of hypotheses for
this study.
29
G.S. Sureshchandar, Chandrasekharan Rajendran, R.N. Anantharaman, (2002) "The relationship between service
quality and customer satisfaction – a factor specific approach", Journal of Services Marketing, Vol. 16 Iss: 4, pp.363
- 379
30
Johnston, R. (1995), “The zone of tolerance: exploring the relationship between service transactions and
satisfaction with the overall service”, International Journal of Service Industry Management, Vol. 6 No. 2, pp. 46-
61.
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Research Design
Research design is the important step to gather and analyze the imperative data and assist to find
the location of the study, sample size, population and so on31. It also includes the identifications
of the five independent variables in this research namely as tangibles, reliability, responsiveness,
assurance and empathy.
Quantitative Design
Quantitative research will be applied based on the nature of study to gather a representative data
from the targeted respondents. To better understand the impact of service quality on customer
satisfaction through a SERVQUAL analysis, researchers have often focused on quantitative
approaches32. It measures the service quality by implementing the five dimensions of the
“SERVQUAL” instrument: each dimensions followed by questions. The 5-point Likert-scale has
been used for all responseswith (1 = strongly disagree, 2 = disagree, 3 = neither agree nor
disagree, 4 = agree, 5 = strongly agree).
It is used to quantify attitudes andbehaviors of the customers that are associated with the Canara
and HDFC banks. The advantage of using quantitative research is that it produces reliable data
that are usually qualified to some large population. In this study, online and paper survey are
used to collect the data from the respondents33.
Descriptive Research
Descriptive research involves transformation of raw data into a form that would provide
information to describe a set of factors in a situation. Descriptive study requires a sample of
hundreds or thousands of subjects to generate an accurate relationship between selected
variables. Descriptive research is more efficient and able to obtain information with reference to
test for hypotheses. Descriptive research studies the frequencies, average, central of tendency,
dispersion and other statistical calculations. By using descriptive data, researchers can know a
substantial amount about the research problem and able to clearly define what should be
measured on this research.
Data Collection Methods
In this study, there are two ways in gathering data which is through primary and secondary data.
1. Primary Data
Primary data will be organized for the specific purpose of addressing the problem on
hand34. The primary data that will be used is questionnaire survey whether by online or
paper. While distribute the questionnaire, the researcher need cooperation and
clarification from the respondents. Besides that, primary data refer as first hand
information or data obtained originally by the researcher on the variables of interest for
the specific purpose of the study35. The questionnaires were distributed to the respondents
whom their respond and answers may differentiate on specific issues regarding to the
topic. Questionnaires can be efficient data collection mechanism of what and how to
31
Sekaran, U. & Bougie, R. 2009. Research Methods for Business: A Skill Building Approach. Chichester: Wiley.
32
Turley, L.W. & Milliman, R.E. (2000), “Atmospheric effects on shopping behavior: a review of the experimental
evidence” , Journal of Business Research, vol. 49, no. 1990, pp.193-211
33
Susan E. Wyse on September 16, 2011 Blog posted via online: (http://www.snapsurveys.com/blog/what-is-the-
difference-between-qualitativeresearch-and-quantitative-research/
34
Malhotra, N. K. (2010). Marketing research: an applied orientation (6th ed.)United States of America: Pearson
Education, Inc.
35
ibid, pg.16
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measure the selected variables. Those questionnaires were administered personally to the
respondents.
2. Secondary Data
Secondary data refer to information gathered by other parties that already conduct a
previous study36. It helps researchers to get better understand and define the problems. To
obtain secondary data, the previous researchers‟ study can be obtained through online
journal databases such as JSTOR, Elsevier and other available databases which are
available in online databases. Furthermore, the relevant articles, lead bank reports and
other sources through internet and online library are aiding in the research. It requires
inexpensive cost, time consuming and energy to the researcher. The advance of
technology helps a lot in finding resources especially the Internet.
Sampling Design
There are five steps under sampling design which are determining the target population, setting
sampling frame and location, deciding the sampling elements, selecting sampling techniques and
determining the sampling size of respondents.
1. Target Population
Target population is the group of people where researcher is interested in analyzing to get
relevant information for research purpose. The population refers to the entire group of
people, events, or things of interest that the researcher wishes to investigate 37. The
sampling method used was Judgment sampling38 a common non-probability method.
The researcher selects the sample based on judgment. It was used to locate the
representative banks from the private and public sector. This is usually is an extension of
convenience sampling.Convenient sampling39 has been chosen in order to select the
respondents. This sampling method is used in exploratory research where the researcher
is interested in getting an inexpensive approximation of the truth. As the name implies,
the sample is selected because they are convenient. In this case both Canara and HDFC
banks do not have huge number of branches. This made it easy to complete the study in
the time period provided.
Targeted respondents are the general public who are at the legal age to hold a Savings
and/or Current Account in any of the banks in Jabalpur. Customers of Canara Bank and
HDFC bank falling under the mentioned group were only considered for this research.
36
Ibid, pg.16
37
Ibid, pg.16
38
Judgment sampling is a common non-probability method. The researcher selects the sample based on judgment.
This is usually an extension of convenience sampling. For example, a researcher may decide to draw the entire
sample from one "representative" city, even though the population includes all cities. When using this method, the
researcher must be confident that the chosen sample is truly representative of the entire population.
39
Convenient sampling is a non-probability method and is often used during preliminary research efforts to get a
gross estimate of the results, without incurring the cost or time required to select a random sample.
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2. Sampling Frame and Sampling Location

The sampling frame is a (physical) representation of all elements in the population from
which the sample drawn40. In this study, the sampling frame will be the customers that
are already enrolled either with Canara bank or HDFC bank in Jabalpur. In fact, the
sampling location for the survey is the area covered by the branches of both the banks.
3. Sampling Elements
The respondents in this study referred to customers who perceived the service of Canara
bank or HDFC bank. Total of 300 populations range from 20 to 70 years old were
selected for this study. The reason to choose these sampling elements are because they
are the main subject in this research since the research topic is about the service
satisfaction received by the customer and there are only few obstacle in language issues
since most of the customers understand and using English very well.
4. Sampling Technique
In this study, simple random sampling technique was selected. To assess customer's
perceptions on quality of service at the two banks, it was necessary to get organized
sampling frame. To accomplish this, all the branches of HDFC and Canara bank were
visited.Customers visiting the banks were interviewed and requested to fill the
questionnaire.
Then, researcher has to draw the sample. Decide on the number of respondents researcher
would like to have in the final sample. In this research, 450 respondents were
surveyed.Convenient sampling is simple to accomplish and is easy and a fair way to
select a sample, it is reasonable to generalize the results from the sample back to the
population. Hence it was used to locate the customers as per their availability at the
banks.
5. Sampling size
Before distributing the real questionnaire to the selected respondents, researcher needs to
pre-test the questionnaires to the other people such as friends and family members. It is
important to ensure the respondents understand the questionnaires and to avoid
misunderstanding occur in the future. Hence 5 questionnaires were distributed. In case of
any misunderstanding about the questions, the questions were reframed to bring about
clarity and be relevant to the study.
A total of 450 questionnaires were distributed and 430 questionnaires were collected. Out
of that, 29 sets of questionnaires were considered unusable because there were not
completed. Israel (2009)41 clarified that factors such as cost and duration allotted for
research are critical in determining sample size. Thus, the study will be only conducted
with401 questionnaires because of the limited budget and also the problem of time
constraint.
40
Ibid, pg.16
41
Israel, Glen D. (2009) Determining sample size. Gainesville, FL: Florida State University, Cooperative
Extension Service. Retrieved 7 April, 2012 from http://edis.ifas.ufl.edu/pd006 (Archived by WebCite ® at
http://www.webcitation.org/66kKEIC0b)
www.irjmsh.com
Formula to calculate Sample Size42

The following formula was used for the sample size n:
𝑁×𝑋 (1−𝑝)
𝑛 = , where, 𝑋 = 𝑍𝛼2 × −𝑝 ×
(𝑋 + 𝑁 − 1) 2 𝑀𝑂𝐸 2
𝛼
And 𝑍𝛼 is the critical value of the Normal distribution at (e.g. for a confidence level43
2 2
of 95%, α is 0.05 and the critical value is 1.96), MOE is the margin of error 44, 𝑝 is the
sample proportion45, and N is the population size46. Note that a Finite Population
Correction has been applied to the sample size47 formula.
42
http://www.select-statistics.co.uk/sample-size-calculator-proportion
43
The confidence level is the probability that the margin of error contains the true proportion. For example, if the
confidence level is 95% then you are 95% confident that the true proportion lies within the range given by the
estimated proportion plus or minus the margin of error. If the survey is repeated and the range calculated each time,
you would expect the true value to lie within these ranges on 95% of occasions. The higher the confidence level the
more certain you can be that the estimated mean is within the margin of error.
44
The margin of error is the level of precision you require. This is the plus or minus number that is often reported
with an estimated proportion and is also called the confidence interval. It is the range in which the true population
proportion is estimated to be and is often expressed in percentage points (e.g., ±2%). Note that the actual precision
achieved after you collect your data will be more or less than this target amount, because it will be based on the
proportion estimated from the data and not your expected sample proportion.
45
The sample proportion is what you expect the results to be. This can often be determined by using the results
from a previous survey, or by running a small pilot study. If you are unsure, use 50%, which is conservative and
gives the largest sample size. Note that this sample size calculation uses the Normal approximation to the Binomial
distribution. If, the sample proportion is close to 0 or 1 then this approximation is not valid and you need to
consider an alternative sample size calculation method.
46
Population Size is the total number of distinct individuals in your population. In this formula we use a finite
population correction to account for sampling from populations that are small. If your population is large, but you
don't know how large you can conservatively use 100,000. The sample size doesn't change much for populations
larger than 100,000.
47
This is the minimum sample size you need to estimate the true population proportion with the required margin of
error and confidence level. Note that if some people choose not to respond they cannot be included in your sample
and so if non-response is a possibility your sample size will have to be increased accordingly. In general, the higher
the response rate the better the estimate, as non-response will often lead to biases in your estimate.
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Figure 1 SAMPLE SIZE CALCULATION

Research Instrument
Questionnaire survey has been used in this study. Questionnaires are defined as the series of
questions aimed to gather prompt and accurate information from respondents. Thus, in order to
perform a good research, a good questionnaire must be designed. Hair, Babin, Money, and
Samouel (2003)48 mentioned that effectiveness and high response rate are the reasons for which
researchers use questionnaire widely to collect primary data if the population of respondents is
well-educated. The interviews were conducted to know the bank profile on an individual basis as
the executives and senior managers would feel more comfortable when doing an interview alone.
A summary of the questionnaire is presented below in Table 2.
Table 2 QUESTIONNAIRE SUMMARY

Banking companies will have modern looking equipment.
The physical facilities at banks will be visually appealing.
Employees at banks will be neat appearing.
Materials associated with the service (such as pamphlets or statements) will be
visually appealing and consisting of major information about new schemes at bank.
The banks will have appropriate number of staff to attend to all customers.
The banks provide online reliability.
Banks will provide reliable information.
48
Hair, J.F.J., Babin, B., Money, A.H., & Samuel, P. (2003). Essentials of Business Research Methods. USA: John
Wiley and Sons, Leyh Publishing, LLC.
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Banks will show consistent performance.

Banks will insist on error free records.
The bank will provide quick and prompt service.
Employees of banks are polite and friendly staff.

Employees of banks will give prompt service to customers.
Employees of banks will always be willing to help customers.
Employees of banks will never be too busy to respond to customers‟ requests.
Employees of Banks are able to resolve queries over the phone as well.
Customers of banks will feel safe in transactions.
Employees of banks will give good financial advice.
Employees of banks will have the knowledge to answer customers‟ questions.
Banks will have operating hours convenient to all their customers.
Banks will have employees who give customers personal attention.
The employees of banks will understand the specific needs of their customers.
The overall quality of the services provided by my bank is excellent.
I am satisfied with products and services provided by my bank.
The questionnaire contained 23 statements arranged in 6 groups. The used scale in this study is a
five-point Likert-scale ranging from 5 “Strongly agree” to 1 “Strongly Disagree”.
Group 1:Items for measuring Tangibility are adapted from research. Five items are used to
measure Tangibility (Questions1-5).
Group 2:Items for measuring Reliability are adapted from research. Three items are used to
measure Reliability (Questions 6-10).
Group 3:Items for measuring Responsiveness are adapted from research. Two items are used to
measure Responsiveness (Questions 11-15).
Group 4:Items for measuring Assurance are adapted from research. Two items are used to
measure Assurance (Questions 16-18)
Group 5:Items for measuring Empathy are adapted from research. Three items are used to
measure Empathy (Questions 19-21).
Group 6:Items for measuring Customer‟s Satisfaction are adapted from research. Two items are
used to measure Customer‟s Satisfaction (Questions 22-23).
CUSTOMER DATA ANALYSIS
Canara Bank has been chosen to represent the public sector banks and HDFC bank to represent
the private sector banks.
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Table 3 GENDER OF CUSTOMERS

GENDER FREQUENCY PERCENTAGE
MALE 292 72.82
FEMALE 109 27.18
TOTAL 401 100
For the study customers who were above 18 years were taken. Customers with their accounts in
HDFC and Canara Bank were only considered. 162 customers were from HDFC and 239 were
from Canara Bank.
Table 4 AGE GROUP OF CUSTOMERS
AGE GROUP
PERCENTAGE FREQUENCY
(IN YEARS)
18-25 8.98 36
25-34 23.69 95
35-44 24.19 97
45-54 13.47 54
55-64 16.71 67
Above 65 12.97 52
TOTAL 100.00 401

DATA ANALYSIS
In order to analyze the questionnaire data, statistical analysis was done using the EXCEL.
Statistical Inferences used are as follows:
i. Reliability Analysis, used to measure reliability using Cronbach alpha.
ii. Chi-Square Testing, used to test if there is a difference between two variables.
The data is also analysed by finding the mean scores of the various SERVQUAL dimensions
both for expectations and perceptions. Such mean scores are compared with each other to find
the gaps between expectations and perceptions. The service quality gaps of customers of the two
banks are compared across.
1. RELIABILITY ANALYSIS
Reliability test is an assessment of the degree of consistency between multiple
measurements of a variable. Cronbach‟s alpha49 is the most widely used measurement
tool used todetermine the internal consistency or average correlation of items in a survey
instrument to gauge its reliability.Cronbach's alpha is an index of reliability associated
with the variation accounted for by the true score of the "underlying construct." Construct
is the hypothetical variable that is being measured. Computation of alpha is based on the
reliability of a test relative to other tests with same number of items, and measuring the
same construct of interest. 50Alpha coefficient ranges in value from 0 to 1 and may be
49
Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. Psychometrika. 16, 297-334.
50
Hatcher, L. (1994). A step-by-step approach to using the SAS(R) system for factor analysis and structural equation
modeling. Cary, NC: SAS Institute.
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used to describe the reliability of factors extracted from dichotomous (that is, questions
with two possible answers) and/or multi-point formatted questionnaires or scales (i.e.,
rating scale: 1 = poor, 5 = excellent). The higher the score, the more reliable the
generated scale is. Nunnaly (1978)51 has indicated 0.7 to be an acceptable reliability
coefficient but lower thresholds are sometimes used in the literature.
Table 3 provides an overview of the reliability scores. As can be seen from this table, all
the alpha coefficients were approximately around the required level of 0.7.
Table 5 RELIABILITY ANALYSIS

NUMBER OF HDFC
SCALE CANARA BANK
ITEMS BANK
Tangibility 5 0.785337 0.811259
Reliability 5 0.766246 0.825356
Responsiveness 5 0.768669 0.865454

Assurance 3 0.77973 0.852821
Empathy 3 0.77006 0.611559
Customer‟s Satisfaction 2 0.79967892 0.828523716
2. TESTING HYPOTHESES USING CHI-SQUARED TEST
In order to understand and determine the main factors that affect the Customer
Satisfaction towards banking services, a number of hypotheses were devised and tested
separately for Canara Bank and HDFC bank as shown below:
Table 6 Interpretation of Chi-Squared Test for Canara Bank
H01: There is no significant difference between Tangibility and Customer Satisfaction
Testing this using the relevant questions, Chi-square = 5.7E10 (DF=9, sig. =0.000).
This shows a significant relation between Tangibility and Customer Satisfaction. This would enable the
authors to reject the null hypothesis.
H02: There is no significant difference between Reliability and Customer Satisfaction Testing
this using the relevant questions, Chi-square = 41 (DF=9, sig. =0.000).
This shows a significant relation between Reliability and Customer Satisfaction. This would enable the
H03: There is no significant difference between Responsiveness and Customer Satisfaction Testing this
using the relevant questions, Chi-square = 4.3E2 (DF=9, sig. =0.000).
This shows a significant relation between Responsiveness and Customer Satisfaction. This would
enable the authors to reject the null hypothesis.
H04: There is no significant difference between Assurance and Customer Satisfaction Testing this using
the relevant questions, Chi-square = 42.959 (DF=0, sig. =0.000).
This shows a significant relation between Assurance and Customer Satisfaction. This would enable the
H05: There is no significant difference between Empathy and Customer Satisfaction Testing this using
the relevant questions, Chi-square = 2.5E2 (DF=2, sig. =0.000).
This shows a significant relation between Empathy and Customer Satisfaction. This would enable the
51
Nunnaly, J. (1978). Psychometric theory. New York: McGraw-Hill.
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Table 7 Interpretation of Chi-Squared Test for HDFC Bank

H01: There is no significant difference between Tangibility and Customer Satisfaction
Testing this using the relevant questions, Chi-square = 62.004 (DF=9, sig. =0.000).
This shows a significant relation between Tangibility and Customer Satisfaction. This would enable the
H02: There is no significant difference between Reliability and Customer Satisfaction Testing
this using the relevant questions, Chi-square = 7.9E4 (DF=9, sig. =0.000).
This shows a significant relation between Reliability and Customer Satisfaction. This would enable the
H03: There is no significant difference between Responsiveness and Customer Satisfaction Testing this
using the relevant questions, Chi-square = 34.7 (DF=9, sig. =0.000).
This shows a significant relation between Responsiveness and Customer Satisfaction. This would
enable the authors to reject the null hypothesis.
H04: There is no significant difference between Assurance and Customer Satisfaction Testing this using
the relevant questions, Chi-square = 53.12 (DF=0, sig. =0.000).
This shows a significant relation between Assurance and Customer Satisfaction. This would enable the
H05: There is no significant difference between Empathy and Customer Satisfaction Testing this using
the relevant questions, Chi-square = 1.5E5 (DF=2, sig. =0.000).
This shows a significant relation between Empathy and Customer Satisfaction. This would enable the
3. CUSTOMERS PERCEPTION OF QUALITY OF BANK SERVICES

To assess the customer service quality, customer perceptions on five dimensions were captured.
The following chart presents the overall perception of the two kinds of banks and the analysis of
customer perception based on each dimension.
Analysis of Perception Customer

Service Quality
3.04
EMPATHY 3.93
3.00
ASSURANCE 3.91
2.79
RESPONSIVENESS 4.05
2.86
RELIABILITY 4.05
2.70
TANGIBILITY 3.71
0.00 1.00 2.00 3.00 4.00 5.00
CANARA BANK HDFC BANK
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1. TANGIBILITY
The graph below shows score for the parameters of tangibility:
Consumer Perception of Tangiblity

Parameters
APPROPRITE NUMBER 2.45

OF STAFF
4.07
ATTRACTIVE PRINT 2.81

MATERIAL
3.53
PROFESSIONALY 3.27
DRESSED
3.41
PHYSICAL 2.25
FACILITY
4.12
CENTRALLY LOCATED 2.74

3.41
0.00
1.00
2.00
3.00
4.00
5.00
The mean score for tangibility factor ranges from 2.7 to 4.12, which is a moderately
agreeable score for banks.
i. For Canara Bank, out of 5 variables tested, appeasing appearance of the
employees is the highest with a mean score of 3.27, which is followed by
attractive printed material.
ii. For HDFC Bank physical facility scores the highest whereas, physical
appearance and location of branches score the least.
2. RELIABILITY
The following graph shows the mean scores of perception of customers on Service
Reliability.
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Consumer Perception of Reliability

Parameters
ERROR FREE 2.76

SERVICE
4.26
QUICK AND 3.42

PROMPT
4.20
CONSISTENT 3.07
PERFORMANCE
4.07
RELIABLE 2.87
INFORMATION
4.06
ONLINE 2.35
RELIABILITY
4.02
0.00
1.00
2.00
3.00
4.00
5.00

The mean score for service reliability factor ranges from 2.35 to 4.26, which is a
moderately agreeable score for banks.
i. For Canara Bank, out of 5 variables tested, quick and prompt response of the
employees is the highest with a mean score of 3.42, which is followed by
consistent peformance.
ii. For HDFC Bank error free service scores the highest whereas, online reliability
scores the least.
3. RESPONSIVENESS
The following graph shows the mean scores of perception of customers on
Responsiveness.
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Consumer Perception of
Responsiveness Parameters
TELEPHONIC 3.00
ASSISTANCE 4.09
LESS 2.50
WAITING… 4.05
CUSTOMER 2.59
SUPPORT
4.09
PROMPT
2.96
RESPONSE
4.03
POLITE AND
2.90
FRIENDLY
3.98
0.00
1.00
2.00
3.00
4.00
5.00
The mean score for responsiveness factor ranges from 2.7 to 4.12, which is a moderately
i. For Canara Bank, out of 5 variables tested, telephonic assistance is the highest with a
mean score of 3 , which is followed by prompt response from employees.
ii. For HDFC Bank customer support and telephonic assistance score the highest
whereas, polite and friendly scores the least.
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4. ASSURANCE
The following graph shows the mean scores of perception of customers on Assurance.
Consumer Perception of Assurance

Parameters
2.97
KNOWLEDGEABLE
EMPLOYEES
3.85
GOOD 2.76
FINANCIAL
ADVICE
3.91
3.27
SAFE
TRANSACTIONS
3.96
0.00
1.00
2.00
3.00
4.00
The mean score for assurance factor ranges from 2.76 to 3.96, which is a moderately
i. For Canara Bank, out of 3 variables tested, safe transactions is the highest with a
mean score of 3.27, which is followed by knowledgeable employees.
ii. For HDFC Bank safe transactions score the highest whereas, the parameter
knowledgeable employees‟scores the least.
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5. EMPATHY
The following graph shows the mean scores of perception of customers on Empathy.
Consumer Perception of Empathy

Parameters
SPECIFIC 3.05
NEEDS MET
3.92
PERSONAL 2.90
ATTENTION
3.90
CONVENIENT
3.17
OPERATING
HOURS
3.97
0.00
1.00
2.00
3.00
4.00
The mean score for empathy factor ranges from 2.90 to 3.97, which is a moderately
i. For Canara Bank, out of 3 variables tested, convenient operating hours is the highest
with a mean score of 3.17, which is followed by specific needs met.
ii. For HDFC Bank convenient operating hoursscores the highest whereas, parameter
personal attention scores the least.
FINDINGS, SUGGESTIONS AND CONCLUSION

This study investigated the quality perception of bank customers in Jabalpur for HDFC Bank and
Canara Bank and the differences in relative importance they attach to the various quality
dimensions using the SERVQUAL model. SERVQUAL appears to be a reliable scale to measure
banking service quality, and provide a useful diagnostic role to play in assessing and monitoring
service quality in banks. The research finding Customer Satisfaction in Jabalpur banking services
is significantly related to Reliability, Empathy, Assurance and Responsiveness, and Tangibility.
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It also indicates that customers‟ perception is highest in the reliability area this result showed
consistency with Parasuraman et al.52 and Yang et al53. and lowest in the assurance area.
Assurance is mean of being safe, the responses state that the customers feel assurance is being
important as part of the service quality that should be included. Responsiveness is the timely
reaction towards the customers' needs. Responses to our research suggest that responsiveness has
positive correlation and significant effect on customer satisfaction. This result shows that the
banks‟ customers are prefer to deal with the human being rather than machines. It is also, shows
that Tangibility has relationship but no significant effect on customer satisfaction. Bank services
such as the infrastructure facilities are not important so this study concludes that tangibility is a
need in providing quality service, but not a must. The results of the research suggest that there is
a significant positive relationship between the empathy and customer satisfaction, so the
customers prefer a face-to-face service by the banks. Reliability is about the accuracy and
timeliness in the service provided. Responses to our research, Reliability has a significant
relationship and a positive effect on customer satisfaction.
SUGGESTIONS
1. The expectations of the customers are on the increase especially those customers who
belong to the working class. Hence banks have to revisit their traditional practices and
adapt themselves to satisfy the needs of the young generation.
2. Banks are focusing more on high net worth individuals and business classes; the other
customer segments have been ignored to a very great extent, reflecting low satisfaction
score from the latter. A conscious effort is needed to work on all the segments and make
every segment profitable.
3. The SERVQUAL gaps are high and significant; this shows there is a need for more
branches and ATM‟s to be established.
CONCLUSIONS
1. Public sector banks are always known for the trust they have developed with the
customers and for their existence in the society for a very long period of time. Hence, it is
suggested that the public sectorbanks keep the trust factor and improve on the other
aspects of service quality.
2. It is advisable that the public sector banks associate more with the technology and good
infrastructure facilities to provide timely and efficient service to the customers.
3. The customer needs to grow with no limits, and it is very much evident from the various
service offerings by the other banks day to day. Not just to rebel competition with the
private banks, but also to retain the existing customers, it is very necessary that the public
sector banks take charge on this.
4. Training the human resource in empathizing with the customers would help the banks to
retain the existing and attract new customers.
52
Parasuraman, A., Zeithaml, V. and Berry, L., 1988, “SERVQUAL – a multiple-item scale for measuring
consumer perceptions of service quality”, Journal of Retailing, Vol. 64 No. 1, pp. 12-40.
53
Yang, Z. and Fang, X., 2004, "Online service quality dimensions and their relationships with
satisfaction: A content analysis of customer reviews of securities brokerage services", International
Journal of Service Industry Management, Vol. 15 Issue: 3, pp.302 – 326.
www.irjmsh.com
5. Managing customer relation efficiently is an advantage and the banks should concentrate
on this to win the situation.
6. Establishing branches in every possible area would be a better way to progress. This
would really help banks to create more accounts and give more reach to the banks.
Limitations
The study has several acknowledged limitations
1. The present study-mean that the results should be generalized with caution.
2. The sample in this study was small and limited to customers living in Jabalpur.
3. The study did not take into account the potential differences in customers, culture. Future
researchers can corroborate the research findings by undertaking similar studies in
different cities
4. Responses with respect to service quality and customer satisfaction have been solicited
from the customers of banks in a small town. The expectations of people may vary from
those of large towns and hence there is a possibility of cultural bias playing a role in the
outcome of the research
5. The time period was very short hence the impact of customer satisfaction on the business
of banks could not be evaluated.
6. This study also does not separate the population sample into separate geographical
locations. For instance, a person who lives in a remote place (runs a more simple life)
may have a different expectation and perception towards customer services offered by
banks, owing to the different culture, level of education and some other demographic
factors.
The findings are important to enable bank managers to have a better understanding of customers
perception of service quality of banking and consequently of how to improvetheir satisfaction
with respect to aspects of service quality. Owing to the increasing competition in banking,
customer service is an important part and bank managers should be rethinking how to improve
customer satisfaction with respect to service quality. Certainly some limitations must be
mentioned, the primary limitation of this study is the scope and size of its sample.
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IRJMSH Vol 7 Issue 7 [Year 2016] ISSN 2277 – 9809 (0nline) 2348–9359 (Print)

Comparative Study of Customer Satisfaction Level for Government and

Dr. Beena Fernandez

factor of customer satisfaction.2Indian banking sector, whichis dominated by state-controlled

HDFC 3 146.06 265.3 401.47 374.36 547.53 639.66 92.13

The Housing Development Finance Corporation Limited (HDFC) was amongst

Hypotheses of the Study

This study will test the following hypotheses:-

Figure 1: The theoretical framework of correlation between the dimension of

on highest in the prompt and accuracy in transactions followed by safety of customer‟s

Anantharman, (2002)29 conducted an in-depth investigation of the relation between service

2. Sampling Frame and Sampling Location

Formula to calculate Sample Size42

Figure 1 SAMPLE SIZE CALCULATION

Table 2 QUESTIONNAIRE SUMMARY

Banks will show consistent performance.

Employees of banks are polite and friendly staff.

Table 3 GENDER OF CUSTOMERS

TOTAL 100.00 401

Table 5 RELIABILITY ANALYSIS

Tangibility 5 0.785337 0.811259

Reliability 5 0.766246 0.825356

Responsiveness 5 0.768669 0.865454

2. TESTING HYPOTHESES USING CHI-SQUARED TEST

Table 7 Interpretation of Chi-Squared Test for HDFC Bank

3. CUSTOMERS PERCEPTION OF QUALITY OF BANK SERVICES

Analysis of Perception Customer

0.00 1.00 2.00 3.00 4.00 5.00

CANARA BANK HDFC BANK

The graph below shows score for the parameters of tangibility:

Consumer Perception of Tangiblity

APPROPRITE NUMBER 2.45

ATTRACTIVE PRINT 2.81

CENTRALLY LOCATED 2.74

CANARA BANK HDFC BANK

Consumer Perception of Reliability

ERROR FREE 2.76

QUICK AND 3.42

CANARA BANK HDFC BANK

CANARA BANK HDFC BANK

Consumer Perception of Assurance

CANARA BANK HDFC BANK

Consumer Perception of Empathy

CANARA BANK HDFC BANK

FINDINGS, SUGGESTIONS AND CONCLUSION

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