Liaison Between The Services Provided By Banking Sector And Customer Satisfaction
Dr.A.J.Excelce, Dr.T.Priyanka, Ms.A.Amora, Dr.A.J.Excelce,
Assistant Professor, Department Of Commerce, Kristu Jeyanti College, Bengaluru.
Dr.T.Priyanka,
Assistant Professor, Department Of Commerce, St.Mary’s College (Autonomous) Thoothukudi.
Ms.A.Amora,
Assistant Professor, Department Of Commerce, St.Mary’s College (Autonomous) Thoothukudi.
Abstract
In Today’s World Banking Plays A Vital Role. Even A Common Man Is Now Aware Of All The Banking Transaction. Banking, Before 5 To 6 Years Was A Little Tedious And Now It Has Been Become Much Flexible. Now Totally The Situation Has Been Changed No Long Queue, Lengthy Statements, No Pen And Paper For Withdrawal And Deposits And So On. All The Facilities Have Been Clubbed Together And Are Given To The Customer Within Their Hands. Therefore In This Study 187 Respondents Were Selected To Analyze The Customer Satisfaction And The Service Quality In Private And Public Sector Banks And Also To Create Awareness Among The Customers Among Banking Facilities.
Keywords: Banking, Services, Private Banks, Public Banks. Introduction
Banking Is A Customer Oriented Services Industry, Banks Have Also Started Realizing That Business Depends On Client Service And The Satisfaction Of The Customer And This Is Compelling Them To Improve Customer Service And Build Up Relationship With Customers (Jham, 2008). In Terms Of Quality Of Assets And Capital Adequacy, Indian Banks Are Considered To Have Clean, Strong And Transparent Balance Sheets Relative To Other Banksin Comparable Economies In Its Region. The Elimination Of This Waste And Meeting Customer Expectations Are The Major Challenges Facing Managers These Days In The Service Sector.
(Prasanta Kumar Padhy, 2009).The Service Sector Has Assumed Greater Economic Importance Over The Past Decade. Inspite The Banking Industry Take At Most Care To Attract The Customers, Through Quality Service Yet The Customer Are Not Satisfied With The Services Provided By Banks. Thus The Question Arises Why The Customers Are Not Satisfied With The Services Provided By The Private And Public Sector Banks. Hence, The Researcher Has Made An Attempt To Analyze The Reasons Why The Customers Are Dissatisfied With Services Rendered By The Private And Public Sector Banks.
Objective Of The Study
The Main Objective Of The Study Is To Analyze The Customer Satisfaction And The Service Quality In Private And Public Sector Banks.
Methodology
In Order To Perform The Analysis Of Service Quality And Customer Satisfaction In Private And Public Sector Banks Tmb, Sbi, Indian Banks In Tuticorin Were Selected For The Study. The Data Collected From 187 Customers In Various Segments. The Simple Random Sampling Technique Was Used To Collect The Required Sample.
Data Analysis
Scores For Each Test Category Are Calculated By Assigning Correct Responses.
Percentage Analysis Values Were Used To Evaluate The Scores. Pearson's Chi-Square Test Was Used In The Evaluation Of The Questions Related With Overall Services Of Banks. Statistical Significance Was Made At A P Value Of < 0.05. Factor Analysis Was Used To Evaluate Customer Satisfaction In Banking Services.
Sources Of Data Collection
Primary Data Were Collected From The Consumers By Questionnaire And Interview Method. The Consumers Were Randomly Requested To Fill The Questionnaire. Secondary Data Consists Of Different Literatures Like Books, Journals, Articles And Websites.
Review Of Literature
1. Ananda &Murugaiah, (2003); In Their Study They Suggested That, Promotional Packages Are Very Important For Financial Service Industry Thus The Orientation Of Banks Should Be With A Much Wider Focus In Relation To Consumer And Market Needs, And The Consequent Marketing Strategies.
2. Chiu Et Al. (2005); In Their Study They Attempted To Explain The Relationships Among Relational Bonds, Customer Value, And Customer Loyalty In Different Groups In The Retail Banking Industry.
3. Chakravarty Et Al. (2004); Analyzed And Examined The Role Of Relationships Between Individuals And Their Banks In Determining Switching Behavior.
4. Kristina Heinonen&Tokunbosimbowale (2005); In Their Study They Examined The Usage Of Marketing Concepts & Techniques And Recommended That A Well- Structured Marketing Department In Banks Is Essential For Profitability & Effectiveness.
5. Krishna, Suryanarayana&Srikant (2005); In Their Findings They Recommended That Promotional Strategies Should Be Designed As Per The Nature Of The Services To Be Promoted.
Results & Discussions
Table 1: Factorsattracting The Customers In The Bank Total Variance Explaineda
Compone nt
Initial Eigenvalues Extraction Sums Of Squared Loadings
Rotation Sums Of Squared Loadings
Tot al
% Of Variance
Cumulativ e %
Tota l
% Of Variance
Cumulativ e %
Tota l
% Of Variance
Cumulati ve %
1 6.4
15
58.320 58.320 6.41 5
58.320 58.320 4.99 4
45.398 45.398
2 1.2
25
11.139 69.459 1.22 5
11.139 69.459 2.64 7
24.062 69.459
3 .77
6
7.058 76.517
4 .61
2
5.562 82.079
5 .45
9
4.175 86.255
6 .41
3
3.759 90.013
7 .30
4
2.766 92.779
8 .26
6
2.416 95.196
9 .23
2
2.113 97.309
10 .17
7
1.609 98.918
11 .11
9
1.082 100.000
Rotated Component Matrixa,B
Component
1 2
Apperance And Convenience Of Bank
.750 .230 Time Spent To Get Satisfaction
Level
.847 .206 Easy Procedures Followed .794 .268 Network Coverage Of The Bank .790 .150 Return For The Investment .862 .188 Location Of The Branch .753 .345
Functioning Of Atm .613 .500
In Table1 Factor Analysis Reveals That 11 Variables Are Reduced To 2 Variables With The Important Extracted Factor, It Resulted Cumulative Percentage 69.459 Percent.
Factor1
It Is A Combination Of The Highest Loading Points.
Return For The Investment =.862
Time Spent To Get Satisfaction Level =.847 Easy Procedures Followed =.794
As Per The Factor Analysis, Table1 Reveals The Factors Attracting The Customers In The Bank Mainly Based On The Customer Satisfaction And Customer Confidence.
Factor 1 Can Be Named “Customer Satisfaction”
Factor 2
It Is A Combination Of The Highest Loading Points.
Reliability=.827
Security Of The Banking Satisfaction Level=.785 Privacy =.767
Factor 2 Can Be Named “Customer Confidence”
Table 2. Gender And Their Possession Of Different Accounts
Gender Type Of Account Total
Security Of The Banking Satisfaction Level
.366 .785
Reliability .327 .827
Privacy .073 .767
Easy Formalities In Getting Loan .725 .404
Of The Customer
Current Savings Recurring Deposit
Fixed Deposit
Male 51 64 5 1 121
42.1% 52.9% 4.1% .8% 100.0%
Female 10 55 1 0 66
15.2% 83.3% 1.5% .0% 100.0%
Total 61 119 6 1 187
32.6% 63.6% 3.2% .5% 100.0%
In Considering The Gender Attitudes In Opening Of Bank Accounts, 52.9% Of The Male Customers Have More Savings Bank Account, Next To Current Account (42.1%), Whereas The Female Customers Have 83.3% Of Savings Bank Account And They Also Give Next Importance To Current Account (15.2%). Both Of Them Have Least Number Of Accounts Both In The Recurring Deposit And Fixed Deposit Account.
Chi-Square Tests Value D
f
Asymp. Sig. (2- Sided) Pearson Chi-Square 17.21
8a
3 .001
Likelihood Ratio 18.69 6
3 .000
Linear-By-Linear Association
7.329 1 .007 N Of Valid Cases 187
The Above Table Shows The Possession Of Different Accounts By Male And Female Respondents. The Result Indicates (P<0.05) That There Is No Significant Difference In Between Gender Of The Customers And Possession Of The Different Type Of Accounts. The Gender Of The Customer And The Possession Of Different Accounts Have No Close Relationship. Hence, The Hypothesis Was Accepted. This Shows That The Male And Female Customer Give Equal Importance In Opening The Different Banking Accounts.
Table 3. Age Of The Customers And Monthly Frequency In Visiting The Branch Age Of The
Customer
Time Interval In Visiting The Branch In A Month
Total Less
Than 3
4-6 7-9 10-13 Daily
As Per This Analysis, The Monthly Frequency In Visiting The Branch Is Less Than 3 Times In The Age Group Of 31-40 Years (60.9%), Next Above 40 Years (58.5%). In Contrast, The Daily Visiting Is High In The Age Group Of Below 20 Years (16%) And 21-30 Years (9.5%). Hence, The Frequency In Visiting The Branch Is High In The Age Group Below 30 Years. The Frequency Is Less For The Aged Customers.
Chi-Square Tests
Value Df Asymp. Sig. (2- Sided) Pearson Chi-Square 10.161a 12 .602 Likelihood Ratio 10.102 12 .607 Linear-By-Linear
Association
4.326 1 .038
N Of Valid Cases 187
The Above Table Reveals The Monthly Frequency In Visiting The Branch By Different Age Groups Of The Customer. Since (P>0.05) There Is A Significant Association Between Age Of The Customer And The Frequency In Visiting The Branch. Hence, The Hypothesis Is Rejected. It Clearly Depicts That, When The Age Increases, The Frequency In Visiting The Bank Decreases Whereas Young People Used To Visit The Bank Frequently.
Table 4. Holding Of Accounts With The Bank And Their Satisfaction Level Services
/Products Were Well Explained
Less Than 1 Year 1-5 Years 5-10 Years Above 10 Years Total
Excellent 24 24 4 3 55
43.6% 43.6% 7.3% 5.5% 100.0%
Good 32 47 10 17 106
Below 20 Years
12 5 1 3 4 25
48.0% 20.0% 4.0% 12.0% 16.0% 100.0%
21-30 Years 25 20 5 7 6 63
39.7% 31.7% 7.9% 11.1% 9.5% 100.0%
31-40 Years 28 10 2 3 3 46
60.9% 21.7% 4.3% 6.5% 6.5% 100.0%
Above 40 Years
31 11 4 5 2 53
58.5% 20.8% 7.5% 9.4% 3.8% 100.0%
Total 96 46 12 18 15 187
51.3% 24.6% 6.4% 9.6% 8.0% 100.0%
30.2% 44.3% 9.4% 16.0% 100.0%
Average 8 9 3 0 20
40.0% 45.0% 15.0% .0% 100.0%
Poor 3 0 0 1 4
75.0% .0% .0% 25.0% 100.0%
Very Poor 0 0 1 1 2
.0% .0% 50.0% 50.0% 100.0%
Total 67 80 18 22 187
35.8% 42.8% 9.6% 11.8% 100.0%
Table 4 Reports The Satisfaction Level Of The Customer With The Period Of Possession Of Accounts. It Shows That 43.6% Of The Customer Who Holds Account For Less Than 5 Years Has An Excellent Opinion About The Description Of The Services/Products By The Staff Members, Whereas Half Of The Customer (50%) Who Holds Account For More Than 10 Years Was Not Satisfied With The Services/Products Description. This Clearly Points Out That The New Customers Have High Level Of Satisfaction And Low Satisfaction Level Of The Old Customer.
Conclusion
The Findings Suggest That The Banking Services Should Be Promotedand Trying To Accomplish Multiple Activities, As More Adoption Is Observed. To Encourage The Widespread Use Of Different Services Of Banking, Campaigns Should Be Launched To Disseminate The Usefulness Of The Technology. Technology Like Mobile Banking Facilitates To Access Banking Service To The Rural Community. This Requires Customer Friendly Banking Software That Can Be Used In Their Local Language. The Awareness Creation Among The Existing Customers And Campaigns May Be Carried Out At These Locations To Attract More Customers Towards These Services. Now A Day’s Banks In India Are Providing Sms-Based Mobile Banking Services. Steps Should Be Taken To Create Awareness Among All The Age Group Of The Customers To Avail The Facilities Without Any Hindrances Reasons Can Analysed For The Dissatisfaction Of Customers And Try To Overcome That With The Available Technological Upgradation.
References
1. Anand, G.M., Murugaiag, W.J., 2003. Comments On ‘Bank Selection Decision And Market Segmentation’. Journal Of Marketing 40 (October), 89–91
2. Chiu, H.C., Hsieh, Y., Li, Y., Lee, M., 2005. Relationship Marketing And Consumer Switching Behavior. Journal Of Business Research 58 (12), 1681.
3. Chakravarty, S., Feinberg, R., Rhee, E., 2004. Relationships And Individuals’ Bank Switching Behavior. Journal Of Economic Psychology 25 (4), 507.
4. Kristina Heinonen, J.M., Tokenbosinbowoe, Jr. J.H., 1986. Reaching The Service- Sensitive Retail Consumer. Journal Of Retail Banking 8 (3) (Fall), 36–42.
5. Krishna, M., Suryanarayana, S., Srikant,V., 1996. Relationship Marketing: The Importance Of Customer-Perceived Service Quality In Retail Banking. Service Industries Journal 16 (3), 287–304.