made reseach

7/25/2019 Made Reseach

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Abstract

Purpose: The main purpose of this study is to examine the relationship between customer

satisfaction and service quality in public and private banks with respect to the service quality

dimensions.

Method: Convenience sampling technique was used to collect quantitative data from

customers of public and private bank to get their satisfaction levels and meaning of service

quality which were substituted in the !"#$%&' model.

(mplication)Contribution: The findings imply that service quality is not the only factors that

could lead to customer satisfaction in banking sectors* that service quality dimension varies

in the different service sectors. The findings suggest that to provide quality service in order to

satisfy customers+ organi,ations in this kind of banking sectors need to improve on the

dimensions of service quality.


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Contents

S No. Chapter Page no.

-.

.

/.

0.

1.

(ntroduction

"eview of 'iterature

"esearch Methodology

&nalysis

"esults 2 Conclusion

-

--

-0

-3

/4

List of Tables

S No. Tables Page no.

0.-5a6

0.-5b6

0.5a60.5b6

0./5a6

0./5b6

0.05a6

0.05b6

0.15a6

0.15b6

0.75a6

0.75b6

0.85a6

0.85b6

0.45a6

0.45b6

0.35a6

0.35b6

9ender public bank

9ender private bank

;hich bank do you have any account


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Customer satisfaction and service quality:

ince customer satisfaction has been considered to be based on the customerAs experience on

a particular service encounter+ 5Cronin 2 Taylor+ -336 it is in line with the fact that service

quality is a determinant of customer satisfaction+ because service quality comes from

outcome of the services from service providers in organi,ations. &nother author stated in his

theory that Bdefinitions of consumer satisfaction relate to a specific transaction 5the difference

between predicted service and perceived service6 in contrast with attitudesA+ which are more

enduring and less situational


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!NT"#$%CT!#N

ervice quality is an achievement in consumer services. (t reflects at each service encounter.

Customers form service expectations from past experiences+ word of mouth and

advertisement. (n general+ Customers compare perceived service with expected service in

which if the former falls short of the latter the customers are disappointed.

Gor example+ in the case of T&H ?otels+ "esorts and Palaces+ wherein T&H remaining the old

world+ luxury brand in the five


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& customerJs expectation of a particular service is determined by factors such as

recommendations+ personal needs and past experiences. The expected service and the

perceived service sometimes may not be equal+ thus leaving a gap. The service quality model

or the 9&P modelA developed by a group of authors at Texas and North Carolina in -341+

highlights the main requirements for delivering high service quality. (t identifies fivegapsA that cause unsuccessful delivery. Customers generally have a tendency to compare the

service they JexperienceJ with the service they JexpectJ . (f the experience does not match the

expectation+ there arises a gap. Ten determinants that may influence the appearance of a gap

were described by Parasuraman+ in the !"#$%&' model: reliability+ responsiveness+

competence+ access+ courtesy+ communication+ credibility+ security+ understanding the

consumer and tangibles.

in general+ an improvement in service design and delivery helps achieve higher levels of

service quality. Gor example+ in service design+ changes can be brought about in the design of

service products and facilities. Fn the other hand+ in service delivery+ changes can be broughtabout in the service delivery processes+ the environment in which the service delivery takes

place and improvements in the interaction processes between customers and service

providers.

The relationship between service quality and customer satisfaction has received considerable

attention in academic literature. The results of most research studies have indicated that the

service quality and customer satisfaction are indeed independent but are closely related that

and a rise in one is likely to result in an increase in another construct

(AN)

& ban*is a financial institution that creates credit by lending money to a borrower+ thereby

creating a corresponding deposit on the bankJs balance sheet. 'ending activities can be

performed either directly or indirectly through capital markets . Kue to their importance in

the financial system and influence on national economies++ banks are highly regulated in most

countries. Most nations have institutionali,ed a system known as fractional reserve

banking under which banks hold liquid assets equal to only a portion of their current

liabilities.

banking businessO means the business of receiving money on current or deposit account+

paying and collecting cheques drawn by or paid in by customers+ the making of advances to

customers+ and includes such other business as the &uthority may prescribe for the purposes

of this &ct

banking businessO means the business of either or both of the following:

"eceiving from the general public money on current+ deposit+ savings or other similar

account repayable on demand or within less than or with a period of call or notice of less

than that period*


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Paying or collecting checks drawn by or paid in by customers.

=anks borrow money by accepting funds deposited on current accounts+ by accepting and by

issuing debt securities such as and bonds. =anks lend money by making advances to

customers on current accounts+ by making installment loan and by investing in marketable

debt securities and other forms of money lending.

=anks provide different payment services+ and a bank account is considered indispensable by

most businesses and individuals. Non


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The global banking industry faces short


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The three banks were merged in -3- to form the (mperial =ank of (ndia which upon (ndiaJs

independence+ became the tate =ank of (ndia in -311. Gor many years the presidency banks

had acted as quasi


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(n @@4 the "eserve =ank of (ndia introduced a system to allow in (ndia+ the cheque

transaction system as it was known was first rolled out in the National Capital "egion and

then rolled out nationally.

Physical as well as virtual expansion of banking through mobile banking+ internet banking+

tele banking+ bio


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but in later work+ these were collapsed into five factors < reliability+ assurance+ tangibles+

empathy and responsiveness < that create the acronym "&T!".

=usinesses using !"#$%&' to measure and manage service quality deploy a questionnaire

that measures both the customer expectations of service quality in terms of these five

dimensions+ and their perceptions of the service they receive. ;hen customer expectations

are greater than their perceptions of received delivery+ service quality is deemed low.

$&T&"1!NANTS:

The ten determinants that may influence the appearance of a gap are:

Competenceis the possession of the required skills and knowledge to perform the service.Gor example+ there may be competence in the knowledge and skill of contact personnel+

knowledge and skill of operational support personnel and research capabilities of the

organi,ation.

Courtesyis the consideration for the customerJs property and a clean and neat appearance of

contact personnel+ manifesting as politeness+ respect+ and friendliness.

Credibilityincludes factors such as trustworthiness+ belief and honesty. (t involves having

the customerJs best interests at prime position. (t may be influenced by company name+

company reputation and the personal characteristics of the contact personnel.

Securityenables the customer to feel free from danger+ risk or doubt including physical

safety+ financial security and confidentiality.

Accessis approachability and ease of contact. Gor example+ convenient office operation hours

and locations.

Communicationmeans both informing customers in a language they are able to understand

and also listening to customers. & company may need to adIust its language for the varying

needs of its customers. (nformation might include for example+ explanation of the service and

its cost+ the relationship between services and costs and assurances as to the way any

problems are effectively managed.
https://en.wikipedia.org/wiki/Competence_(human_resources)https://en.wikipedia.org/wiki/Competence_(human_resources)https://en.wikipedia.org/wiki/Competence_(human_resources)


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)no2ing the customermeans making an effort to understand the customerJs individual

needs+ providing individuali,ed attention+ recogni,ing the customer when they arrive and so

on. This in turn helps to delight the customers by rising above their expectations.

Tangiblesare the physical evidence of the service+ for instance+ the appearance of the

physical facilities+ tools and equipment used to provide the service* the appearance of

personnel and communication materials and the presence of other customers in the service

facility.

"eliabilityis the ability to perform the promised service in a dependable and accurate

manner. The service is performed correctly on the first occasion+ the accounting is correct+

records are up to date and schedules are kept.

"esponsiveness is the readiness and willingness of employees to help customers by

providing prompt timely services+ for example+ mailing a transaction slip immediately or

setting up appointments quickly.

$&1&NS!#NS:

(N -33@s+ the authors had refined the model to five factors that enable the acronym "&T!":

"eliability: the ability to perform the promised service dependably and accurately

Assurance: the knowledge and courtesy of employees and their ability to convey trust and

confidence

Tangibles: the appearance of physical facilities+ equipment+ personnel and communication

materials

&1PAT/-:the provision of caring+ individuali,ed attention to customers

"esponsiveness: the willingness to help customers and to provide prompt service
https://en.wikipedia.org/wiki/Empathyhttps://en.wikipedia.org/wiki/Empathy


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M!&N(N9 FG !"#(C! $%&'(TR M&N&9!M!NT:

The process of managing the quality of services delivered to a customer according to his

expectations is called ervice $uality Management. (t basically assesses how well a service

has been given+ so as to improve its quality in the future+ identify problems and correct

them to increase customer satisfaction. ervice quality management encompasses the

monitoring and maintenance of the varied services that are offered to customers by an

organi,ation.

;hether you are in the software business offering services to clients or operate in the food+hospitality or travel industry+ service quality management is integral to managing customer

expectations and business growth. The service quality can either relate to the service

potential 5qualifications of the persons offering service6+ service process 5quickness+

reliability etc.6 or the service result 5meeting customer expectations6.

N&&$ #+ T/!S ST%$-:

The maIor aim of the research proIect is to measure the quality of service offered by public

and private banks operating in ludhiana. Moreover+ it tries to investigate the relationship

between service quality+ customer satisfaction and loyalty. The five dimensions of

!"#P!"G model+reliability+assurance+tangibility+ empathy and responsiveness were used to

measure the quality of service offered by the private banks. (n order to achieve the aims+ both

primary and secondary sources of data were used. The primary data were collected through

administrating questionnaire. This proIect aims to offer an indepth understanding of bank

customersJ behaviour in relation to the selection process+ and provide bank managers with

useful insight into the development of high quality relationships with customers..

;hy people are switching one bank to another bank >


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;hat are the Gactors influencing more to adopt private bank from the public bank>

?ow the services qualities are different between public and private bank>

F=H!CT(#! FG T?! T%KR:

To know the deep understanding which factors put a maIor impact upon consumer

satisfaction.

status of banking service quality system in 'udhiana.

To make diffrentations between traditional banking and modern banking services.

To analysis how much the service quality of public bank are different from the services

quality provided by private banks.

"eview of 'iterature


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"!#(!; FG '(T"&T%"!:

(n this study following review have been considered:

&kter . and 9hosh .S. 5@@76 in study concludes that in four dimensions like reliability+

empathy+ tangibility+ assurance+ the gap between perceptions and expectations is significant

except responsiveness where it is insignificant means banks do not extend that level of

services which will satisfy the customersA expectations. The study also suggests some

recommendations to minimi,e this gap.

Saleem &. and &hmad . 5@@46 aims to collect bank employeesA perceptions of the potential

benefits and risks associated with electronic banking in india. (n his study shows that public

bank employees who have professional degrees consider minimi,ing transaction costsA and

reduction in ?" requirementsA as the most and the least important benefits of electronic

banking respectively.

Srishnaveni ". and Prabha K.K. 5@@76 study reveals that among the different internal

service quality dimensions taken up for the study+ offering the right information and facilities

to the employees will improve internal service quality perceptions better than the other

dimensions.

Shan M.. 5@@86 examines the results indicate that privacy)security and fulfillment do not

contribute significantly towards the overall service quality and the males and females differ in

their views towards service quality dimensions. The study also suggests some measures to

improve service quality and explore future areas of further research

Sumar and ;alia 5@@76 produce information on integrated approach adopted by (ndian

banks and discussed how (ndian banks are aligning their services as per global requirement.

The study suggests that given the confidence and competence to public sector banks too+

(ndian banking sector will surely touch new heights in the years to come.

?ugar .. and #a, N.?. 5@@46 in his study concludes that new private sector banks have

more &TMs at the end of March @@7 followed by =( group where 88.1 pc branches are

fully computeri,ed and -4. pc are partially computeri,ed

Munusamy H. and Gong #. F. 5@@46 in his study finds that the dimensions of service qualityand customer knowledge are positively correlated to customer satisfaction among (==MAs


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corporate clients. ?owever+ only four factors+ namely+ competence+ credibility+ accessibility+

and tangibles have significant effect on customer satisfaction

Mishra H.S. and Hain M. 5@@86 study various dimensions of customer satisfaction in

nationali,ed and private sector banks. Two


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responsiveness and assurance seem to be must appealing service criterion to the target

consumers.

"&S&A"C/ 1&T/#$#L#,-


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M!&N(N9 FG "!!&"C?:

"esearchcomprises Ocreative work undertaken on a systematic basis in order to increase the

stock of knowledge including knowledge of humans+ culture and society+ and the use of this

stock of knowledge to devise new applications.O L-(t is used to establish or confirm facts+

reaffirm the results of previous work+ solve new or existing problems+ support theorems+ or

develop new theories. & research proIect may also be an expansion on past work in the field.

To test the validity of instruments+ procedures+ or experiments+ research may replicate

elements of prior proIects+ or the proIect as a whole.

%niverse !very single individual who go for banks to fullfill its need.

Population < !very single individual who go for any of public or private banks in 'udhiana

city .

ampling unit < !very single individual who go to banks for fulfilling the needs.

ample i,e 1@ respondents

ampling Technique The convenience sampling method used to collect the primary data

from the customers in 'udhiana city.

& questionnaire was prepared for customerAs survey. (ntroductory question included all

multiple choice )response type of questions. "esearch design: Kescriptive research design

is used to perform the study.

.

Analysis of data=oth primary and secondary data is used to perform the study. we can

collect data from two sources+ primary sources and secondary sources. Kata collected from
https://en.wikipedia.org/wiki/Research#cite_note-1https://en.wikipedia.org/wiki/Research#cite_note-1


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primary sources are known as primary data and data collected from secondary sources are

called secondary data.

Primary data are also known as raw data. Kata are collected from the original source in a

controlled or an uncontrolled environment. Fn the other hand+ data collected through

observation or questionnaire survey in a natural way.

Kata Collection Methods

There are many methods to collect data+ depending on our research design and the

methodologies employed. ome of the common methods are questionnaires + interview and

observation.

Consumer behaviour towards ervice $uality of Public and Private =anks

0%&ST!#NA""!&S:


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034 Satisfaction level of the consumers regarding service quality of the public ban*s

9!NK!" Male Gemale

054 Age 5a6 below @ 5 6 5b6 below -


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&ttentive

"eliability

"esponsive

None of &bove

$36 The Customer Service representative handled my problemquic*ly 8

$-@6 Are your ban*s gives follo2ing +acility8

Net banking

'ow (nterest "ate

Proper ecurity

&ll of &bove

$334 /o2 li*ely are you change your ban* 2ith another ban* 8

Certain

?igh chance

!qual chance

'ess chance

Never

Stro"g#y

$isagree

Somewat

$isagree

"eutra#Somewat

agree

Stro"g#y

agree


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&nalysis

5a6< =ank < Public

$5-6 9ender:

=ank


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&nalysis:< & survey upon 1 people who have an account in public bank we analysis that

/7Q people viewed that employer represented handled the problem of customer at promised

time. The overall result is neutral in this regards.

5a6< =ank

=ank


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&nalysis:


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&nalysis:< &fter this analysis we came to know that in public banks information awareness

facility get much rank because public banks provide prompt information awareness to itscustomers.

$5-@6 =ank


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&nalysis:< ;e analysis that security and service of net banking get very high rank in private

banks .The security related to any transactions+ information are high than in public banks.

$5--6=ank

=ank


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4

5

4

9

*ertai"

ig *a"ce

()ua# *a"ce

ess *a"ce

+ever

&nalysis:< (n public banks the chances of switching the banks are very high because it might

be the quality of services are not as so good as customers expectations parameter of service

quality might be anything like reliability+ empathy etc.

$5--6=ank


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=ank


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