servicequalityofhdfcbank12 salman

7/30/2019 Servicequalityofhdfcbank12 Salman

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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.

servicequalityofhdfcbank12 salman

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