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A

PROJECTREPORT

ON

SERVICEQUALITYOFHDFCBANK

InfulfillmentoftherequirementsforInternship at HDFC as Winter Trainning for MBA

Programme.

(2013)

UNDERTHEGUIDANCEOF:

Mr. Shadab Owais

(Branch Manager)

SUBMITTEDTO: SUBMITTEDBY:

Prof.Dr.AsifFazili Salman Irshad

(Faculty) Rollno.-43

School OF Business Studies

I slamic University of Science And Technology (I UST)

Awantipora- Kashmi r- 191121


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A

PROJECTREPORT

ON

SERVICEQUALITYOFHDFCBANK

InfulfillmentoftherequirementsforInternship at HDFC as Winter Trainning for MBA

Programme.

(2013)

UNDERTHEGUIDANCEOF:

Mr. Shadab Owais

(Branch Manager)

SUBMITTEDTO: SUBMITTEDBY:

Prof.Dr.AsifFazili Salman Irshad

(Faculty) Rollno.-43

School Of Business Studies

I slamic University of Science Technology (I UST)

Awantipora- Kashmi r - 192122


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CERTIFICATE


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DECLARATION

IherebydeclarethattheProjectreporttitledSERVICEQUALITYOFHDFC

BANK is my original work and has notbeenpublished or submitted for any

degree,diplomaorothersimilartitleselsewhere.Thishasbeenundertakenforthe

purposeofpartialfulfillmentofMasters in Business Administration (MBA) Programme

at Islamic University Of Science and Technology.

Date: Salman Irshad

Rollno.:-43


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PREFACE

Thisproject report attempts tobring under one cover the entire hard work and

dedicationputinbymeinthecompletionoftheprojectworkonServiceQualityof

HDFCbank.

Ihaveexpressedmyexperiencesinmyownsimpleway.Ihopewhogoesthrough

itwillfind itinterestingandworthreading.Allconstructivefeedbackiscordially

invited.


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ACKNOWLEDGMENT

It is reallya matter ofpleasureformeto getan opportunityto thank allthe

personswhocontributeddirectlyorindirectlyforthesuccessfulcompletionof

theprojectreport,ServiceQualityofHDFCbank.

FirstofallI am extremely thankfulto my University and my Department SBS

IUST forprovidingmewiththisopportunityandforallitscooperation

and contribution.Ialso expressmygratitudeto my Projectmentorand guide

Shadab Owais (Branch Manager).Iamhighlythankfultoourrespectedprojectguide

forgivingmetheencouragementandfreedomtoconductmyproject.

Iamalso gratefulto allmyfacultymembers fortheir valuableguidanceand

suggestionsformyentirestudy.

IwouldalsoliketothanktheHDFCteamforextendingtheirvaluabletimeand

cooperation.

Salman Irshad

RollNo.: -43


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INDEX

CONTENTS PAGE NO.

1. INTRODUCTION

2. COMPANYPROFILE

3. SERVICEQUALITYINBANKS

4. RESEARCHOBJECTIVE

5. RESEARCHMETHODOLOGY

6. DATAANALYSIS

7. FINDINGSOFTHEREPORT

8. CONCLUSION

9. RECOMMENDATIONS

10.BIBLIOGRAPHY

11.ANNEXURE:QUESTIONNAIRE


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INTRODUCTION

Servicewithasmile:

Todaysfinickybankingcustomerswillsettlefornothingless.Thecustomerhascometorealize

somewhatbelatedlythatheistheking.Thecustomerschoiceofoneentityoveranotherashis

principalbankisdeterminedbyconsiderationsofservicequalityratherthananyotherfactor.He

wantscompetitiveloanratesbutatthesametimealsowantshisloanorcreditcardapplication

processedindoublequicktime.Heinsiststhathebepromptlyinformedofchangesindeposit

ratesandservicechargesandhebristleswithcustomaryrageifhisbankisslowtoredressany

grievancehemayhave.Hecherishestheconvenienceofimpersonalnetbankingbutduringhis

occasionalvisitstothebranchhealsowantsthecomfortofpersonalizedhumaninteractionsand

facilitiesthatmakehisbankingexperiencepleasurable.Inshorthewantsfinancialhousethat

willmorethanjustclearhischequeandupdateshispassbook:hewantsabankthatcaresand

providesgreatservices.

SodoesHDFCbankmeettheseheightenedexpectations?Whatarethecustomersperceptions

ofservicequalityofthebanks?WhichdimensionofservicequalityofHDFCbankisperforming

well?TofindoutanswerstothesequestionsIundertookasurveyin 1 of thebranchesofHDFCbank.

Alotofsurveyshavebeendoneinthepasttounderstandtheaspectofcustomersatisfactionand

tofindoutthecustomerfriendlybanks.MyresearchisconductedtofindoutSERVICE

QUALITYOFHDFCBANK.


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COMPANY

PROFILE


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HDFC BANK

TheHousingDevelopmentFinanceCorporationLimited(HDFC)wasamongstthefirstto

receivean'inprinciple'approvalfromtheReserveBankofIndia(RBI)tosetupabankinthe

privatesector,aspartoftheRBI'sliberalisationoftheIndianBankingIndustryin1994.The

bankwasincorporatedinAugust1994inthenameof'HDFCBankLimited',withitsregistered

officeinMumbai,India.HDFCBankcommencedoperationsasaScheduledCommercialBank

inJanuary1995.

HDFCBankcomprisesofadynamicandenthusiasticteamdeterminedtoaccomplishthevision

ofbecomingaWorld-classIndianbank.HDFCbanksbusinessphilosophyisbasedonourfour

corevalues-CustomerFocus,OperationalExcellence,ProductLeadershipandPeople.They

believethattheultimateidentityandsuccessoftheirbankwillresideintheexceptionalquality

ofpeopleandtheirextraordinaryefforts.Theyarecommittedtohiring,developing,motivating

andretainingthebestpeopleintheindustry.


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BUSINESS FOCUS

HDFCBank'smissionistobeaWorld-ClassIndianBank.Theobjectiveistobuildsound

customerfranchisesacrossdistinctbusinessessoastobethepreferredproviderofbanking

servicesfortargetretailandwholesalecustomersegments,andtoachievehealthygrowthin

profitability,consistentwiththebank'sriskappetite.Thebankiscommittedtomaintainthe

highestlevelofethicalstandards,professionalintegrity,corporategovernanceandregulatory

compliance.HDFCBank'sbusinessphilosophyisbasedonfourcorevalues-Operational

Excellence,CustomerFocus,ProductLeadershipandPeople.

MISSION STATEMENT OF HDFC BANK

WorldClassIndianBank.

Benchmarkingagainstinternationalstandards.

Tobuildsoundcustomerfranchisesacrossdistinctbusinesses

Bestpracticesintermsofproductofferings,technology,servicelevels,riskmanagement

andaudit&compliance

VISION STATEMENT OF HDFC BANK

TheHDFCBankiscommittedtomaintainthe highestlevelofethicalstandards,professional

integrityandregulatorycompliance.HDFCBanksbusinessphilosophyisbasedonfourcore

valuessuchas:-


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1.Operationalexcellence.

2.CustomerFocus.

3.Productleadership.

4.People.

TheobjectiveoftheHDFCBankistoprovideitstargetmarketcustomersafullrangeof

financialproductsandbankingservices,givingthecustomeraone-stepwindowforallhis/her

requirements.TheHDFCBankplusandtheinvestmentadvisoryservicesprogramshavebeen

designedkeepinginmindneedsofcustomerswhoseeksdistinctfinancialsolutions,information

andadviceonvariousinvestmentavenues.

BUSINESS STRATEGY

IncreasingmarketshareinIndiasexpandingbanking

Deliveringhighqualitycustomerservice

Maintainingcurrenthighstandardsforassetqualitythroughdisciplinedcreditrisk

management

Developinnovativeproductsandservicesthatattracttargetedcustomersandaddress

inefficienciesintheIndianfinancialsector.

DISTRIBUTION NETWORK

HDFCBankisheadquarteredinMumbai.TheBankatpresenthasanenviablenetworkofover

1229branchesspreadover444citiesacrossIndia.Allbranchesarelinkedonanonlinereal-time


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basis.Customersinover120locationsarealsoservicedthroughTelephoneBanking.TheBank's

expansionplanstakeintoaccounttheneedtohaveapresenceinallmajorindustrialand

commercialcenterswhereitscorporatecustomersarelocatedaswellastheneedtobuilda

strongretailcustomerbaseforbothdepositsandloanproducts.Beingaclearing/settlementbank

tovariousleadingstockexchanges,theBankhasbranchesinthecenterswheretheNSE/BSEhas

astrongandactivememberbase.

TheBankalsohasanetworkofaboutover2526networkedATMsacrossthesecities.Moreover,

HDFCBank'sATMnetworkcanbeaccessedbyalldomesticandinternationalVisa/MasterCard,

VisaElectron/Maestro,Plus/CirrusandAmericanExpressCredit/Chargecardholders.

PROMOTER

HDFCisIndia'spremierhousingfinancecompanyandenjoysanimpeccabletrackrecordin

Indiaaswellasininternationalmarkets.Sinceitsinceptionin1977,theCorporationhas

maintainedaconsistentandhealthygrowthinitsoperationstoremainamarketleaderin

mortgages.Itsoutstandingloanportfoliocoverswelloveramilliondwellingunits.HDFChas

developedsignificantexpertiseinretailmortgageloanstodifferentmarketsegmentsandalso

hasalargecorporateclientbaseforitshousingrelatedcreditfacilities.Withitsexperienceinthe

financialmarkets,astrongmarketreputation,largeshareholderbaseanduniqueconsumer

franchise,HDFCwasideallypositionedtopromoteabankintheIndianenvironment.


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MANAGEMENT

Mr.C.M.VasudevhasbeenappointedastheChairmanoftheBankwitheffectfrom6thJuly

2010subjecttotheapprovaloftheReserveBankofIndiaandtheshareholders.Mr.Vasudevhas

beenaDirectoroftheBanksinceOctober2006.AretiredIASofficer,Mr.Vasudevhashadan

illustriouscareerinthecivilservicesandhasheldseveralkeypositionsinIndiaandoverseas,

includingFinanceSecretary,GovernmentofIndia,ExecutiveDirector,WorldBankand

GovernmentnomineeontheBoardsofmanycompaniesinthefinancialsector.

TheManagingDirector,Mr.AdityaPuri,hasbeenaprofessionalbankerforover25years,and

beforejoiningHDFCBankin1994washeadingCitibank'soperationsinMalaysia.

TheBank'sBoardofDirectorsiscomposedofeminentindividualswithawealthofexperience

inpublicpolicy,administration,industryandcommercialbanking.Seniorexecutives

representingHDFCarealsoontheBoard.

SeniorbankingprofessionalswithsubstantialexperienceinIndiaandabroadheadvarious

businessesand

functions

and

report

to

the

Managing

Director.

Given

the

professional

expertise

ofthemanagementteamandtheoverallfocusonrecruitingandretainingthebesttalentinthe

industry,thebankbelievesthatitspeopleareasignificantcompetitivestrength.

TECHNOLOGY

HDFCBankoperatesinahighlyautomatedenvironmentintermsofinformationtechnologyand

communicationsystems.Allthebank'sbrancheshaveonlineconnectivity,whichenablesthe

banktoofferspeedyfundstransferfacilitiestoitscustomers.Multi-branchaccessisalso

providedtoretailcustomersthroughthebranchnetworkandAutomatedTellerMachines


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(ATMs).

TheBankhasmadesubstantialeffortsandinvestmentsinacquiringthebesttechnologyavailable

internationally, tobuildtheinfrastructureforaworldclassbank.TheBank'sbusinessis

supportedbyscalableandrobustsystemswhichensurethatourclientsalwaysgetthefinest

servicesweoffer.

TheBankhasprioritiseditsengagementintechnologyandtheinternetasoneofitskeygoals

andhasalreadymadesignificantprogressinweb-enablingitscorebusinesses.Ineachofits

businesses,theBankhassucceededinleveragingitsmarketposition,expertiseandtechnologyto

createacompetitiveadvantageandbuildmarketshare.

QUALITY POLICY

SECURITY:Thebankprovideslongtermfinancialsecurityto theirpolicy.Thebank

doesthisbyofferinglifeinsuranceandpensionproducts.

TRUST: Thebank appreciates the trustplacedby theirpolicy holders inthebank.

Hence,itwillaimtomanagetheirinvestmentsverycarefullyandliveuptothistrust.

INNOVATION: Recognizingthedifferent needsofourcustomers, thebankoffersa

rangeofinnovativeproductstomeettheseneeds.

INTEGRITY

CUSTOMERCENTRIC

PEOPLECAREONEFORALLANDALLFORONE


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TEAMWORK

JOYANDSIMPLICITY

BUSINESS

HDFCBankoffersawiderangeofcommercialandtransactionalbankingservicesandtreasury

productstowholesaleandretailcustomers.Thebankhasthreekeybusinesssegments:

WholesaleBankingServices

TheBank'stargetmarketrangesfromlarge,blue-chipmanufacturingcompaniesinthe

Indiancorporatetosmall&mid-sizedcorporatesandagri-basedbusinesses.Forthese

customers,theBankprovidesawiderangeofcommercialandtransactionalbanking

services,includingworkingcapitalfinance,tradeservices,transactionalservices,cash

management,etc.Thebankisalsoaleadingproviderofstructuredsolutions,which

combinecashmanagementserviceswithvendoranddistributorfinanceforfacilitating

superiorsupplychainmanagementforitscorporatecustomers.Basedonitssuperior

productdelivery/servicelevelsandstrongcustomerorientation,theBankhasmade

significantinroadsintothebankingconsortiaofanumberofleadingIndiancorporates

includingmultinationals,companiesfromthedomesticbusinesshousesandprimepublic

sectorcompanies.Itisrecognisedasaleadingproviderofcashmanagementand

transactionalbankingsolutionstocorporatecustomers,mutualfunds,stockexchange


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membersandbanks.

RetailBankingServices

TheobjectiveoftheRetailBankistoprovideitstargetmarketcustomersafullrangeof

financialproductsandbankingservices,givingthecustomeraone-stopwindowforall

his/herbankingrequirements.Theproductsarebackedbyworld-classserviceanddelivered

tocustomersthroughthegrowingbranchnetwork,aswellasthroughalternativedelivery

channelslikeATMs,PhoneBanking,NetBankingandMobileBanking.

TheHDFCBankPreferredprogramforhighnetworthindividuals,theHDFCBankPlus

andtheInvestmentAdvisoryServicesprogramshavebeendesignedkeepinginmindneeds

ofcustomerswhoseekdistinctfinancialsolutions,informationandadviceonvarious

investmentavenues.TheBankalsohasawidearrayofretailloanproductsincludingAuto

Loans,Loansagainstmarketablesecurities,PersonalLoansandLoansforTwo-wheelers.It

isalsoaleadingproviderofDepositoryParticipant(DP)servicesforretailcustomers,

providingcustomersthefacilitytoholdtheirinvestmentsinelectronicform.

HDFCBankwasthefirstbankinIndiatolaunchanInternationalDebitCardinassociation

withVISA(VISAElectron)andissuestheMastercardMaestrodebitcardaswell.TheBank

launcheditscreditcardbusinessinlate2001.ByMarch2010,thebankhadatotalcardbase

(debitandcreditcards)ofover14million.TheBankisalsooneoftheleadingplayersinthe

merchantacquiringbusinesswithover90,000Point-of-sale(POS)terminalsfordebit/

creditcardsacceptanceatmerchantestablishments.TheBankiswellpositionedasaleader

invariousnetbasedB2Copportunitiesincludingawiderangeofinternetbankingservices

forFixedDeposits,Loans,BillPayments,etc.


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Treasury

Withinthisbusiness,thebankhasthreemainproductareas-ForeignExchangeand

Derivatives,LocalCurrencyMoneyMarket&DebtSecurities,andEquities.Withthe

liberalisationofthefinancialmarketsinIndia,corporatesneedmoresophisticatedrisk

managementinformation,adviceandproductstructures.Theseandfinepricingonvarious

treasuryproductsareprovidedthroughthebank'sTreasuryteam.Tocomplywithstatutory

reserverequirements,thebankisrequiredtohold25%ofitsdepositsingovernment

securities.TheTreasurybusinessisresponsibleformanagingthereturnsandmarketriskon

thisinvestmentportfolio.


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SERVICE QUALITY

IN BANKS


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Inthedaysofintensecompetition,thebanksarenodifferentfromanyotherconsumermarketing

company.Ithasbecomeessentialfortheservicefirmsingeneralandbanksinparticularto

identifywhatthecustomer'srequirementsareandhowthosecustomerrequirementscanbemet

effectively.Inthedayswhereproductandpricedifferencesareblurred,superiorservicebythe

serviceprovideristheonlydifferentiatorleftbeforethebankstoattract,retainandpartnerwith

thecustomers.Superiorservicequalityenablesafirmtodifferentiateitselffromitscompetition,

gainasustainablecompetitiveadvantage,andenhanceefficiency.Thebenefitsofservicequality

includeincreasedcustomersatisfaction,improvedcustomerretention,positivewordofmouth,

reducedstaffturnover,decreasedoperatingcosts,enlargedmarketshare,increasedprofitability,

andimprovedfinancialperformance.Theconstructofservicequalityhasthereforebeena

subjectofgreatinteresttoservicemarketingresearchers.

Servicequalityhasbeendefinedbyvariousexpertsinvariouswaysas:'ServiceQualityisthe

differencebetweencustomers'expectationsforserviceperformancepriortotheservice

encounterandtheirperceptionsoftheservicereceived.'AccordingtoGefanServicequalityis

thesubjectivecomparisonthatcustomersmakebetweenthequalitiesofservicethattheywantto

receiveandwhattheyactuallyget.'Parasuramansays,'Servicequalityisdeterminedbythe

differencesbetweencustomer'sexpectationsofservicesprovider'sperformanceandtheir

evaluationoftheservicestheyreceived.

Servicequalityis'thedeliveryofexcellentorsuperiorservicerelativetocustomerexpectations.

Servicequalityisrecognizedasamultidimensionalconstruct.Whilethenumberofdimensions


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oftenvariesfromresearchertoresearcher,thereissomeconsensusthatservicequalityconsists

ofthreeprimaryaspects:outcomequality,interactionquality,andphysicalserviceenvironment

quality.Outcomequalityreferstothecustomer'sassessmentofthecoreservicewhichisthe

primemotivatingfactorforobtainingtheservices(e.g.moneyreceivedfromATM).

Interactionqualityreferstothecustomer'sassessmentoftheservicedeliveryprocess,whichis

typicallyrenderedviaaphysicalinterfacebetweentheserviceprovider,inperson,orvia

technicalequipment,andthecustomer.Itincludes,forinstance,theconsumer'sevaluationofthe

attitudeoftheserviceprovidingstaff.Thephysicalserviceenvironmentqualitydimensionrefers

totheconsumer'sevaluationofanytangibleaspectassociatedwiththefacilitiesorequipment

thattheserviceisprovidedin/with.Itincludes,forexample,thephysicalconditionsofanATM

machine.

Themostpopulardimensionsofservicequality--featuresfivedimensions:tangibles,

reliability,responsiveness,empathy,andassurance.Thetangiblesdimensioncorrespondsto

theaforementionedphysicalenvironmentaspect,thereliabilitydimensioncorrespondstothe

serviceoutcomeaspect,andtheremainingthreerepresentaspectsofinteractionquality.

Boththecostsandtherevenueoffirmsareaffectedbyrepeatpurchases,positiveword-of-mouth

recommendation,andcustomerfeedback.Moreover,thereisstrongevidencethatservicequality

haseitheradirectinfluenceonthebehavioralintentionsofcustomersand/oranindirect

influenceonsuchintentions,mediatedthroughcustomersatisfaction.
http://encyclopedia2.thefreedictionary.com/ATM+machinehttp://encyclopedia2.thefreedictionary.com/ATM+machinehttp://encyclopedia2.thefreedictionary.com/ATM+machinehttp://encyclopedia2.thefreedictionary.com/ATM+machinehttp://encyclopedia2.thefreedictionary.com/ATM+machinehttp://encyclopedia2.thefreedictionary.com/ATM+machinehttp://encyclopedia2.thefreedictionary.com/ATM+machine


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RATERisaninstrumentthatmightbeusedtodefineandmeasurebankingservicequalityand

tocreateusefulquality-assessmenttools.

TheRATERmayfinallyprovidethefollowingbenefitstotheHDFCbank:

1.Itisthefirstapproachtoaddandmixthecustomersreligiousbeliefsandculturalvalueswith

otherqualitydimensions.

2.Itprovidesformulti-facedanalysisofcustomersatisfaction.

3.Itlinksqualitywithcustomerssatisfactionandserviceencounter.

4.Itprovidesinformationatseverallevels,alreadyorganizedintomeaningfulgroupings.

5.Itisaprovenapproach,whichresultsinusableanswerstomeetcustomersneeds.

6.Itisempiricallygrounded,systematicandwelldocumented.

BanksmanagerscanusetheRATERmodelanditsdimensionsfirsttoidentifythefollowing

issues:

Toidentifythoseareaswhereimprovementshouldbemadeandresourcescanbeallocated.For

instance,theyneedtoknowthelevelofqualityintheirbanksandtheycanmanipulatetomake

bank-wideimprovementinqualityperformance.Alsotheycanusebenchmarkingtocompare

theirperformanceandotherbanks,whichhavealreadyimplementedqualityprogramthatwill

helptoprioritisethequalitymanagementefforts.


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RESPONSIVENES

S

RELIABILITY ASSURANCE

EMPATHY TANGIBILIT

Y

DIMENSIONSOFSERVICEQUALITY

TANGIBILITY:Thisdimensiondealwithmodernlookingequipmentsandvisualappealingpartof

banks.

RELIABILITY:Thisdimensionhasadirectpositiveeffectonperceivedservicequalityand

customersatisfactioninbankinginstitutions.Banksmustprovideerrorfreeserviceandsecure

onlinetransactionstomakecustomersfeelcomfortable.

RESPONSIVENESS:Customersexpectthatthebanksmustrespondtheirinquirypromptly.

Responsivenessdescribeshowoftenabankvoluntarilyprovidesservicesthatareimportanttoits

customers.Researchersexaminingtheresponsivenessofbankingserviceshavehighlightedthe

importanceofperceivedservicequalityandcustomersatisfaction.

ASSURANCE:Customerexpectsthatthebankmustbesecuredandthebehavioroftheemployees

mustbeencouraging.


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EMPATHY:individualattention,customizedserviceandconvenientbankinghoursareverymuch

importantintodaysservice.

Inordertoachievebetterunderstandingofservicequalityinbankingsector,theproposedfive

servicequalitydimensionsareconceptualizedtoillustratetheoverallservicequalityofthe

bankinginrelationtocustomersandprovidersperspective.

Bankingwasinthesectorfeaturingmediumgoodsandhighercustomerproducerinteractions,

sinceinbanking,consumersandserviceprovidersinteractpersonallyandtheuseofgoodsisata

mediumlevel.Hence,inbanking,wheretherearehighcustomer-producerinteractions,the

qualityofserviceisdeterminedtoalargeextentbytheskillsandattitudesofpeopleproducing

theservice.

Inthecaseofservices,becausecustomersareofteneitherdirectobserversoftheproduction

processoractiveparticipants,howtheprocessisperformedalsohasastronginfluenceonthe

overallimpressionofthequalityofservice.Awell-performedserviceencountermayeven

overcomethenegativeimpressioncausedbypoortechnicalqualityaswellasgeneratepositive

word-of-mouth,particularlyifcustomerscanseethatemployeeshaveworkedveryhardto

satisfytheminthefaceofproblemsoutsidetheircontrol.Employeesarepartoftheprocess,

whichconnectswiththecustomeratthepointofsale,andhenceemployeesremainthekeyto

successattheseserviceencountersormomentsoftruth.Itistheseencounterswithcustomers


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duringaservicethatarethemostimportantdeterminantsofoverallcustomersatisfaction,anda

customersexperiencewiththeservicewillbedefinedbythebriefexperiencewiththefirms

personnelandthefirmssystems.Therudenessofthebankscustomerservicerepresentative,

theabruptnessoftheemployeeatthetellercounter,orthelackofinterestofthepersonatthe

checkdepositcountercanalteronesoverallattitudetowardstheservice,perhapsevenreversing

theimpressioncausedbyhightechnicalquality.

Anotherimportantservicequalityfactor,competence,isdefinedbywhetherthebankperforms

theservicerightthefirsttime,whethertheemployeesofthebanktellcustomersexactlywhen

serviceswillbeperformed,whetherthebanklivesuptoitspromises,whethercustomersfeel

safeintheirtransactionswiththebankandwhethertheemployeesshowasincereinterestin

solvingthecustomersproblems.Inshort,thisdimensionisrelatedtothebanksabilityto

performthepromisedserviceaccuratelyanddependably.Performingtheservicedependablyand

accuratelyistheheartofservicemarketingexcellence.Whenacompanyperformsaservice

carelessly,whenitmakesavoidablemistakes,andwhenitfailstodeliveronpromisesmadeto

attractcustomers,itshakescustomersconfidenceinitscapabilitiesandunderminesitschances

ofearningareputationforserviceexcellence.

Itisveryimportanttodotheservicerightthefirsttime.Incaseaserviceproblemdoescropup,

byresolvingtheproblemtothecustomerssatisfaction,thecompanycansignificantlyimprove

customerretention.However,companiesfarebestwhentheypreventserviceproblems


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altogetherandfareworstwhenserviceproblemsoccurandthecompanyeitherignoresthemor

doesnotresolvethemtothecustomerssatisfaction.

Performingtheserviceaccuratelyisperhapsthemostimportantfactorinservicequality

excellence.Thecostofperformingtheserviceinaccuratelyincludesnotonlythecostofredoing

theservicebutalsothecostassociatedwithnegativeword-of-mouthgeneratedbydispleased

customers.Incaseofservices,thefactoryisthefield.Again,servicesareintangibleandhence

thecriteriaforflawlessservicesaremoresubjectivethanthecriteriafordefect-freetangible

goods.Henceformostservices,customersperceptionsofwhethertheservicehasbeen

performedcorrectly,andnotprovider-establishedcriteria,arethemajordeterminantsof

reliability.

Theservicequalityfactortangibleisdefinedbywhetherthephysicalfacilitiesandmaterials

associatedwiththeservicearevisuallyappealingatthebank.Theseareallfactorsthatcustomers

noticebeforeoruponenteringthebank.Suchvisualfactorshelpconsumersformtheirinitial

impressions.Acrucialchallengeinservicemarketingisthatcustomerscannotseeaservicebut

canseethevarioustangiblesassociatedwithit-allthesetangibles,theservicefacilities,

equipmentandcommunicationmaterialsarecluesabouttheintangibleservice.Ifunmanaged,

thesecluescansendtothecustomerswrongmessagesabouttheserviceandrenderineffective

themarketingstrategyofthecompany.Ontheotherhand,improvingqualitythroughtangibles

meansattentiontothesmallestdetailsthatcompetitorsmightconsidertrivial.Yet,thesevisible

detailscanaddupforcustomersandsignalamessageofcaringandcompetence.


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Customersmayrevealnewaspectsofservicequalityinbankingthatareimportanttothem,and

thesewouldhavetobeincorporatedinthescalesoastofurtherexploretheconceptofservice

qualityinthebankingarena.


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RESEARCH OBJECTIVE

AND

RESEARCH METHODOLOGY


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RESEARCH OBJECTIVE

Theobjectiveofthestudyisasfollows:

Toexaminetheessentialdimensionsofservicequalityi.e.RATER-Reliability,

assurance,tangibles,empathyandresponsivenessofHDFCbank anditseffectoncustomers

satisfaction.

Tofindoutthelevelofperceptionofthecustomersfromtheservicequalityofferedby

thebanks.

Toknowwhichservicequalitydimensionofthebankisperformingwell.

Toidentifywhichdimensionofservicequalityneedsimprovementsothatthequalityof

serviceofHDFCbanksisenhanced

IMPORTANCE AND SCOPE OF THE STUDY

Thestudywouldtrytothrowsomeinsightsintotheexistingservicesprovidedbythebanks,

perceptionsandtheactualservicequalityofthebank.Theresultsofthestudywouldbeableto

recognizethelacunaeinthesystemandthusprovidekeyareaswhereimprovementisrequired

forbetterperformanceandsuccessratio.Inthedaysofintensecompetition,superiorserviceis

theonlydifferentiatorleftbeforethebankstoattract,retainandpartnerwiththecustomers.

Superiorservicequalityenablesafirmtodifferentiateitselffromitscompetition,gaina

sustainablecompetitiveadvantage,andenhanceefficiency.


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SCOPE OF STUDY

ThescopeofthisresearchistoidentifytheservicequalityofHDFCbank.Thisresearchisbased

onprimarydata andsecondarydata. Thisstudyonly focusesonthedimensionsofservice

qualityi.e.RATER.Itaimstounderstandtheskillofthecompanyintheareaofservicequality

thatareperformingwellandshowsthoseareaswhichrequireimprovement.Thestudywasdone

taking into 1 branch ofHDFCbankintoconsideration. Thesurveywasrestrictedtothebank

customers at Khnayaronly.


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RESEARCH METHODOLOGY

DATA SOURCE

Primary Data:

Theprimarydatawascollectedbymeansofasurvey.Questionnaireswerepreparedand

customersofthebankat khnayarbranchewereapproachedtofillupthequestionnaires.The

questionnairecontains20questionswhichreflectonthetypeandqualityofservicesprovidedby

thebankstothecustomers.Theresponseofthecustomerandtheisrecordedonagradescaleof

stronglydisagree,disagree,uncertain,agreeandstronglyagreeforeachquestion.Thefilledup

informationwaslateranalyzedtoobtaintherequiredinterpretationandthefindings.

Secondary Data:

Inordertohaveaproperunderstandingoftheservicequalityofbankadepthstudywasdone

fromthevarioussourcessuchasbooks,alotofdataisalsocollectedfromtheofficialwebsites

ofthebanksandthearticlesfromvarioussearchengineslikeGoogle,yahoosearchand

answers.com.

RESEARCH DESIGN

Theresearchdesignisexploratorytillidentificationofservicequalityparameters.Laterit

becomesdescriptivewhenitcomestoevaluatingcustomerperceptionofservicequalityofthe

banks.


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Descriptiveresearch,alsoknownasstatisticalresearch,describesdataandcharacteristics

aboutthepopulationorphenomenonbeingstudied.Descriptiveresearchanswersthequestions

who,what,where,whenandhow.

Althoughthedatadescriptionisfactual,accurateandsystematic,theresearchcannotdescribe

whatcausedasituation.Thus,descriptiveresearchcannotbeusedtocreateacausalrelationship,

whereonevariableaffectsanother.Inotherwords,descriptiveresearchcanbesaidtohavealow

requirementforinternalvalidity.

Thedescriptionisusedforfrequencies,averagesandotherstatisticalcalculations.Oftenthebest

approach,priortowritingdescriptiveresearch,istoconductasurveyinvestigation.Qualitative

researchoftenhastheaimofdescriptionandresearchersmayfollow-upwithexaminationsof

whytheobservationsexistandwhattheimplicationsofthefindingsare.

RESEARCH SAMPLE

SAMPLING PLAN:

Sinceitisnotpossibletostudywholeuniverse,itbecomesnecessarytotakesamplefromthe

universetoknowaboutitscharacteristics.

SamplingUnits:CustomersofHDFCbank

SampleTechnique:RandomSampling.

ResearchInstrument:StructuredQuestionnaire.

ContactMethod:PersonalInterview.
http://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Causality


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SAMPLE SIZE:

TheworkisacaseofHDFCBank,oneofthelargestbankofIndianbankingindustrytogether

representingover25percentofthemarketshareofIndianbankingspace.Thesurveywas

conductedinthecityofSrinagar within the Khnayar branch ofHDFCBank,with50customers

asrespondent.

DATA COLLECTION TOOL

Datawascollectedthroughastructuredquestionnaire.Likertscaletechniqueisused.Theformat

ofatypicalfive-levelLikertitemis:

1. Stronglydisagree

2. Disagree

3. Neitheragreenordisagree

4. Agree

5. Stronglyagree

Likertscalingisabipolarscalingmethod,measuringeitherpositiveornegativeresponsetoa

statement.Thequestionnaireconsistsoftwoparts.Thefirstpartconsistsofthreequestions

concerningthe

demographic

information

of

the

respondent

such

as

the

name,

age,

educational

qualificationsandincome.Thesecondpartconsistingof18questionsexploringtherespondents

perceptionabouttheservicequalityofHDFC.ForevaluationofservicequalityofHDFCbank
http://legal-dictionary.thefreedictionary.com/respondenthttp://legal-dictionary.thefreedictionary.com/respondenthttp://legal-dictionary.thefreedictionary.com/respondenthttp://legal-dictionary.thefreedictionary.com/respondent


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servicequalitydimensionofreliability,assurance,tangibility,empathyandresponsivenessis

usedinordertoevaluatetheactualservicequalityofHDFCbank.

RESEARCH LIMITATIONS

ThestudyisonlyfortheHDFCBankconfinedtoaparticularlocationandaverysmall

sampleofrespondents.Hencethefindingscannotbetreatedasrepresentativeoftheentire

bankingindustry.

Thestudycanalsonotbegeneralizedforpublicandprivatesectorbanksofthecountry.

Respondentsmaygivebiasedanswersfortherequireddata.Someoftherespondentsdid

notliketorespond.

Respondentstriedtoescapesomestatementsbysimplyansweringneitheragreenor

disagreetomostofthestatements.Thiswasoneofthemostimportantlimitationfaced,asit

wasdifficulttoanalyseandcomeatarightconclusion.

Inourstudywehaveincluded50customersofbankbecauseoftimelimit.


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ANNEXURE

QUESTIONNAIRE

RespectedSir/Madam

Iamstudent of Islamic University of Science And Technology,conductingasurveyon

SERVICEQUALITYOFHDFCBANK.Thefollowingstatementsrelatetoyourfeelings

abouttheHDFCbank.PleaseshowtheextenttowhichyoubelieveHDFCbankhasthefeature

describedinthestatement.Irequestyoutotheoptionwhichinyouropinionarebelievedtobe

true.Alldatawillbekeptconfidential.

Name:

Age:

EducationalQualifications:

StronglyDisagree Disagree Neitheragree Agree StronglyAgreeNordisagree

1. HDFCbankhasmodernlookingequipment.

2. Thebank'sphysicalfeaturesarevisuallyappealing.

3. Thebank'sreceptiondeskemployeesareneat

appearing.

4. Materialsassociatedwiththeservice(suchas

pamphletsorstatements)arevisuallyappealingat

thebank.

5. Whenthebankpromisestodosomethingbyacertain

time, itdoesso.

6. Whenyouhaveaproblem,thebankshowsasincere

interest insolvingit.


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StronglyDisagree Disagree Neitheragree Agree StronglyAgreeNordisagree

7. Thebankperformstheservicerightthefirsttime.

8. Thebankinsistsonerrorfreerecords.

9. Employeesinthebanktellyouexactlywhenthe

serviceswillbeperformed.

10.Employeesinthebankgiveyoupromptservice.

11.Employeesinthebankarealwayswillingtohelp

you.

12.Employeesinthebankarenevertoobusytorespond

toyourrequest.

13.Theemployeesofthebankaretrustworthy.

14.Thebehaviorofemployeesinthebankinstills

confidenceinyou.

15.Youfeelsafeinyourtransactionswiththebank.

16.Employeesinthebankhavetheknowledgetoanswer

yourquestions.

17.Thebankgivesyouindividualattention.

18.Thebankhasoperatinghoursconvenienttoallits

customers.

19.Thebankhasyourbestinterestsatheart.

20.Theemployeesofthebankunderstandyour

specificneeds.

Download - Servicequalityofhdfcbank12 Salman

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