A RESEARCH REPORT

ON

CUSTOMER SATISFACTION CRITERIA FOR CREDIT CARDS

IN THE PARTIAL FULFILLMENT OF REQUIREMENTFOR THE AWARD OF

BACHELOR OF BUSINESS ADMINISTRATIONBACHELOR OF BUSINESS ADMINISTRATION(BBA)

ACADEMIC SESSION: 2003-2006

UNDER THE GUIDANCE OF: SUBMITTED BY :

Mrs. Pankaj Bhardwaj GAURAV BHAMABranch Manager BBA-V SEM.HSBC BANK LTD., NEW DELHI ROLL NO.: 9357551

Institute of Management StudiesC-238, BULANDSHAHAR G.T. ROAD, LAL QUAN, P.B. NO. 57,

Ghaziabad-201009

PREFACE PREFACE

This Project Report has been prepared towards the partial fulfillment of Bachelor of Business Administration.

The present day managers of business concern function in a

dynamic environment. In a world in which change is a suite & not

an exception nothing is certain markets can’t relax once they

have launched their product or service in market.

In a dynamic world a business concern has the drive through a

thick fog of in certifications & risk & a worng move may prove

disastrous. It is here that a business managers beeds to thick

what a customers thinks & exception from his product & how can

customers exception can be translated into features & attributes

of the product so that customer feels delighted. This project tries

to drive into the minds of customers of credit cards & tries to

know what they actually expect from a credit card service.

This study is based on unskiasked respondents given by the so

kind respondents.

ACKNOWLEDGEMENT

I extent my gratitude to Mr. Pankaj Bhardwaj, Branch Manager

Who has given an opportunity to undergo training in marketing

department of HSBC Bank as a Trainee.

I would like to convey my heartiest gratitude to Mr. Amit Gupta,

Team Leader, Credit Card Sales Division, HSBC Bank under whose

guidance this report could be prepared.

Finally, I would like to thank other countless people, who

had helped me directly or indirectly, as they have been generous

with their time, their support and encouragement.

Thank to all of you.

ANKIT BANSAL

TABLE OF CONTENTS

1. Preface

2. Acknowledgement

3. Introduction

Introduction to Project

Profile of HSBC

Features and Benefits

Customer Satisfaction

4. Research Methodology

5. Data Analysis

6. Findings

7. Limitations

8. Conclusion

9. Recommendations

10. Appendix

11. Bibliography

INTRODUCTION TO THE PROJECT INTRODUCTION TO THE PROJECT

Customer increasing expect higher quality & service & some

customization. They perceive fewer real products differences and show

and less brands loyalty. They can obtain extensive credit card

information from the internet and other sources which permits them to

shop more intelligently. When the buyer of credit card is satisfied after

purchase depend of the performance of credit card in relation of buyer’s

expectations in general satisfaction is a person feeling of pleasure or

disappointment resulting from comparing a credit card performance in

relation to his expectations. If it performance falls short of expectation,

the customer is dissatisfied. If performance matches the expectations

the customer is satisfied. If the performance exceeds expectations the

customer is highly satisfied or delighted.

The project which we have undertaken tries cover the main objective to

find out customer satisfaction criteria for credit card. It also tried to

cover following aspects. This will lead to certain implication for credit

cards companies as to how they can formulates their future strategies in

order to increase there sales. We have tried going in details and

studying the purchase of credit card from different angles so, as to

analyze the issue from 3600 . The research tries to develop an

understanding on the following aspects too. Which on the whole will

help us in understanding the consumer behavior for a credit card in a

holistic view.

The general awareness level of credit cards.

What are the advantages and disadvantages of credit cards.

The consumer behavior in credit cards and decision making

process.

What are the uses of credit card.

What are the things that a consumer needs to look for in a creditWhat are the things that a consumer needs to look for in a credit

card before deciding to purchase it.card before deciding to purchase it.

What role does brand play.What role does brand play.

Other related issues.Other related issues.

INTRODUCTION TO VISA AND MASTERINTRODUCTION TO VISA AND MASTER

VISA

The story of VISA is inseparable from one of the most significant

payment innovations of the twentieth century the payment card. By

developed this tool of unprecedented flexibility and popularizing its use

around the world. VISA shape the way that people everywhere live.

The VISA card has helped bring possibilities and independence to

millemium VISA era began in 1958, when the Bank of America first

issued its blue, white and gold BankAmericard to customers in

Califonia. Its bedrock concept of personal empowerment traces back

much earlier. A.P. Giannini, founder of the Bank of America at the

beginning of the century, belived that flexible personal credit could

help ordinary men and women take control of together. The

BankAmericard, a financial instrument established to drive positive

social change, continued this legenacy of compassionate, customer-

focused banking.

With BanlAmericard international popularity in the 1960s and 1970s

new corporate entity, jointly owned and a operated by license member

institutions, was created to support them. The name “Visa” was

introduced in 1976 and applied to the new organization. Soon Visa

credit cards were spreading around the world.

Under the leadership of Dee Hock, Visa laid the groundwork for the

success of its member financial institutions for decades to come. Hock

oversaw the creation of the first-ever electronic system for handling

credit transactions-an investment in transaction processing

infrastructure which would lead to rapid growth and expansion.

Throughout the 1980s and 1990s, Visa continued to make important

strides forward, introducing the first premium credit card, creating the

first global ATM network, developing new smart and prepaid cards and

gaining market share around the world.

Today, Visa proudly lives up to its heritage by focusing on empowering

customers. Visa 21,000 member institutions have issued more than one

billion cards and to its values remain firmly anchored in service,

commitment and innovation. Visa is pioneering the creation of c-

commerce, or universal commerce-the ability to conduct commerce

anywhere, and way. In the real world and online, Visa is leading the

global market with exciting new put on larger and grader and

celebrations in an attempt to out-do each other.

“commerce technologies and capabilities that add convenience and

each to its payment solutions”

Jointly owned by more than 21,000 financial institutional around

the global reach, Visa remains very much a local organization,

giving its regional offices a high degree of operating and

marketing autonomy, Because Visa’s regional organizations are

closest to their local markets, they know best how to help

member institutions serve their customers. Empowering member

financial institutions-it’s the principle that underlines Visa’s

success.

Visa products and services-including credit, debit and prepaid,

corporate, purchasing and business products-are offered directly

by member financial institutionals to their customers. Visa

international focuses on providing members with a strong

competitive platform, including an advanced transactional

processing infrastructure and global branding and marketing. But

around a highly responsive and flexible regional structure, Visa

International also leads new initivates in product development,

global research and strategic alliances.

MASTER

MasterCard International is a global payments company with one

of the most recognized and respected brands in the world. We

manager a full range of payment programs and service, including

MasterCard® credit, MasterCards® debit cards, Maestro® online

debit cards, Cirrus® ATM cash access, and related programs.

With approximately 22,500 MasterCard, Cirrus and Maestro

members worldwide, MasterCard serves consumers and

businesses, both large and small, in 210 countries and

territories. MasterCard is leader in quality and innovation,

offering a wide range of payment solutions in the virtual and

traditional worlds. MasterCard’s award-wining Priceless®

advertising campaign is now seen in 98 countries and 46

languages, giving the MasterCard brand a truly global reach and

scope. MasterCard is accepted at millions of locations around

the global.

MasterCard began in the 1940s when several U.S. banks started

giving their customers specially-issued paper that could be used

like cash in local stores. In 1951, The Franklin National Bank in

New York formalized the practice by introducing the first real

credit card.

Over the next decade, several franchises evolved where a single

bank in each major city would accept cards as payment with

certain merchants theyd chosen to work with. ON August 16,196,

one of the these groups formed the interbank card Association

(ICA), which later become MasterCArd International.

Unlike other similar organizations, ICA was not dominated by a

single bank Member committees were established to run the

association. They established rules for authorization, clearing

and settlement. They also handled marketing, security and

global aspects of running the organization.

Once the organization was well underway, it was time to expand

globally. In 1968, ICA began what is now a huge global network

by forming an association with Banco Nacinal in Maxico. Later

that year , they formed an alliance in Europe with Eurocard and

the first Japanese’s members joined .

Many countries followed behind the early international members

and by the late 1970s. ICA had members from as far as Africa

and Australia. To reflect the commitement to international

growth, ICA changed its name to MasterCard. In the 1980s,

there was future expansion into Asia and Latin America. In 1987,

MasterCard become the first payment card to be issued in the

People’s Republic of China. In 1988, the first MasterCard was

issued in the Soviet Union.

Today, there are over 37 MasterCard offices around the world

with the global is accepted in more locations around the world

than MasterCard.

DIFFERENT TYPES OF CARDS

CREDIT CARDS

If you carry a balance, credit cards can be like expensive loans

made by banks, gasoline companies and department stores. The

credit card issuer gives you a card. You use the card to pay for

items and services up to certain total amount-your credit “limit”

The store merchant or services provider collects what you owe

from the card issuer, whom you replay. You’re allowed to pay off

what you owe little by little each month, as long as you pay a

minimum amount each time. You’re charged interest on the

balance you owe ( as high as 26% each year) at the end of each

period, unless you pay the full balance each time your bull

arrives.

Credit cards yield profits to their issuers for several reasons. The

most important is the high rate of interest-interest on credit cards

alone accounts for the bulk of the profit earned by banks that

issue credit card, and most companies charge late fees, over-

the-time fees and other miscellaneous charges. Finally, the

companies profit by charging merchants and service providers a

fee each time a customer uses the company’s credit in the

merchant’s establishment.

CHARGE CARDS

Charge cards, also called travel and entertainment cards, are a

little different from credit cards. Charge cards, such as American

Express and Diners Club, have no credit limit. You can usually

charge as much as want, but you are required to pay off your

entire balance when your bill arrives, with one exception. It you

charge air fare, cruise fees or hotels fees for a hotel room

booked through a travel agent on an American Express card,

you pay off your balance over 36 months. You’ll be charged

between 19% and 21% interest and will have to make minimum

monthly payments of $20, or 1/36 of your balance, whichever is

greater.

Charge card companies make their profits by charging very high

annual fees- up to $100- and by charging merchants relatively

high fees each time a customer pays using the company’s

charge card.

If you don’t pay your charge card bill in full, you’ll get a one-

month grace period, when no interest is charged. After that,

you’ll be charged interest that averages about 18%. It you don’t

pay after about months, three months, your account will be

closed and your bill sent to the collections departments.

CASH ADVANCES

Many people use their credit or charge cards to obtain cash

advances, Cash advances are generally more expensive than

standard credit card charges. Most banks charge a transaction

fee up to 4% for taking a cash advance. They also charged

interest from the date the cash advance is posted, even if you

pay it back in full when your bill comes. Finally , the interest rate

is often higher or cash advances than it is on ordinary credit card

charges.

ATM CARDS

ATM cards are issued by banks essentially to give bank

customers flexibility in their banking hours . in most areas, with

an ATM card you can withdraw money, make deposit, transfer,

money between accounts, find out your balance, get a cash

advance and even make payments at all hours of the day or

night.

DEBIT CARDS

Debit cards combine the functions of ATM cards and checks.

Debit card area issued by banks but are used at stores, not at

the banks themselves. When you pay with a debit card, the

money is automatically deducted from your checking account.

Many banks issue a combined ATM/Debit card that looks just

like a credit card and can be used in places where credit cards

are accepted. But don’t be mistaken- they are not credit cards.

The money you spend comes out of your checking account

immediately.

Many people prefer debit cards over checks for two

reasons:

You do not have to carry checkbook and present

identification, but are still able to make purchases directly

from your checking account.

You pay your bills immediately, unlike when you use a

credit card and get the bill later.

But there are disadvantages to using debit cards. Many people

prefer having 20-25 days to pay their credit card bills. Also,

consumers using debit cards don’t have the right to withhold

payment in the event of a dispute with the merchant over the

goods or services paid for. In addition, many banks and

merchants charge transaction fees for using debit card. Finally, if

debit card number is stolen on the internet, the their may drain

your bank account before the bank is able to complete its

investigation. For this reason, it’s better to use credit , rather than

debit, cards for online purchase.

CHEQUE GURANTEE CARD

Used for identification purpose only.

Not linked with credit or debit types.

Allows the merchant to accept personal cheque payments

without fear of dishonor.

Some validation checks required e.g…, telephone authorization

etc.

STORE VALUE CARD

Electronically processed card that stores monetary value

Value can be stores on a chip or magnetic strip on the card.

Typically used by public utilities where a large number of small

value transactions can replace cash e.g…, MTNL Card, BEST

Card.

SMART CARD

Has an implanted computer chip incorporated in the card plastic

which gives it the power to perform many different functions like

having a PC in your wallet!

Multiple applications on the same card e.g.. credit, debit,

electronic cash, driving licenses, secure identification hence you

need to carry less cards in your wallet.

Chip can record data or value or both and can store up to 80

times more information than a magnetic chip.

Terminal on which the card is used has a chip reader in addition

to the magnetic stripe reader.

CO-BRANDED CARD

Banks enter each into partnership with a non-bank to market

credit cards.

Both parties are into the alliance for financial gain as the non

bank partner is a profit-making company with a good customer

base.

The bank gains an additional customer base while the non-bank

partner can offer credit cards to its members.

A customized card for a specific retailer or service provider, such

as shoppers Stop that wishes to solicits customers. The issuer

looks after the card operations while the co-branded partner

shared marketing costs and responsibility

E.g. Citibank-Jet-Airways Card, HSBC-PNB card.

AFFINITY CARDS

To grow a portfolio , the bank enters into partnership with a non-

bank to issue a card which may have a third party name on the

face of the card

If the non-bank partner is a non-profit organization , the card is

known as an affinity card.

As credit card issued by a member in conjunction with an

organization or collective group (e.g. a professional organization

or special interest group) which is identified on the card. The

issuer often pays the organization a royality per card or per

transaction charged.

e.g. Tollygunge Club card, Delhi Golf Club card.

PROFILE OF HSBC

IntroductionIntroduction

HSBC has its Headquarters in

London. HSBC Holdings plc is one of the

largest banking and financial services

organizations in the world. HSBC’s

international network comprises over

9,500 offices in 80 countries and

territories in Europe, the Asia-Pacific

region, the Americas, the Middle East,

and Africa. With listings on the London, Hong Kong, New York

and Paris stock exchanges, around 190,000 shareholders in

some 100 countries and territories hold shares in HSBC

Holdings plc. The shares are traded on the New York Stock

Exchange in the form of American Depositary Receipts.

Through an international network linked by advanced

technology, including a rapidly growing e-commerce capability,

HSBC provides a comprehensive range of financial services:

personal financial services; commercial banking; corporate,

investment, banking, and markets; private banking; and other

activities.

HSBC IN INDIAHSBC IN INDIA

HSBC's origin in India dates back to 1853,

when the Mercantile Bank of India was

established in Mumbai. The bank has since,

steadily grown in reach and service offerings,

keeping pace with the evolving banking and

financial needs of its customers.

The acquisition in 1959 by The Hongkong and

Shanghai Banking Corporation Limited of

the Mercantile Bank was a decisive factor in

laying the foundation for today's HSBC Group. Founded in 1865

to serve the needs of the merchants of the China coast and

finance the growing trade between China, Europe, and the

United States, HSBC has been an international bank from its

earliest days.

After the Mercantile Bank was acquired by The Hongkong and

Shanghai Banking Corporation, the Flora Fountain building

became and remains to this day, the Head Office of the HSBC

Group in India.

Through the 1990s, HSBC has vigorously developed its role as

one of the leading banking and financial services organizations

in the world. Its strategy of 'managing for value' emphasizes the

Group's unique balance of business and earnings between older,

mature economies and faster-growing emerging markets.

HSBC in India is proud to have retained

the Group's pioneering streak by being an active

partner in the development of the Indian banking

industry - even giving India its first ATM way

back in 1987. The organization’s adaptability,

resilience, and commitment to its customers

have further enabled it to survive through clients

as also to a fast growing personal banking

customer turbulent times and prosper through good times over

the past 150 years.

In India, the Bank offers a comprehensive suite of world-

class products and services to its corporate and commercial

banking base.

HSBC Group entities in IndiaHSBC Group entities in India

1. The Hongkong and Shanghai Banking Corporation Limited

(HSBC)

2. HSBC Asset Management (India) Private Limited

3. HSBC Electronic Data Processing (India) Private Limited

4. HSBC Insurance Services (India) Private Limited

5. HSBC Securities and Capital Markets (India) Private

Limited

6. HSBC Primary Dealership (India) Private Limited

7. HSBC Private Equity Management (Mauritius) Limited

8. HSBC Software Development (India) Private Limited

Products /services offered by HSBCProducts /services offered by HSBC

1. Credit Card

a. HSBC Gold Card

b. HSBC Classic Card

2. Loans

a. Home Loans

b. Personal Loans

c. Educational Loans

d. Professional Loans

3. Account

a. Savings Account

b. Fixed Account

c. Demat Account

d. Smart Money Account

e. Current Account

i. Business Select

ii. Business Vantage

iii. Business Account

4. Insurance

a. Personal Insurance

i. Life Insurance

ii. Home Insurance

iii. Hospital Cash Insurance

iv. Car Insurance

v. Personal Account Insurance

b. Business Insurance

5. Wealth Management

a. HSBC Premier

b. Power Vantage

c. Financial Planning Service

d. Business Select

e. Mutual Fund

6. NRI Services

a. Non Residents

b. Returning Non Residents

7. Corporate and Institutional Banking

a. Corporate Banking

b. Treasury and Capital Market

c. Institutional Banking

d. Equities, Corporate Finance And Advisory

e. Payment and Cash Management

i. Payment

ii. Collections

iii. Account Management

iv. Electronic Banking Hexagon

f. Trade And Factoring Services

i. Trade Services

ii. Factoring Services

iii. Precious Metals

iv. Custody And Clearing

Technology UsedTechnology Used

HSBC's global network is linked by advanced technology,

including a rapidly growing e-commerce capability.

Contribution to Society Contribution to Society

HSBC employees lend a helping hand in India

The helping hand staff volunteer programme was launched

in Mumbai in 2001 and has since then has extended to

Ahmedabad, Bangalore, Hydrabad and Pune, putting volunteers

in touch with NGO's and charities that need a helping hand.

HELPING HANDS MELA

Over 50 charities and NGO's take advantage of HSBC's

annual exhibition (mela) to display their work and raise money

through the sale of their products.

FEATURES AND BENEFITS

1. Wide acceptability

The card will be accepted at over 18 million establishment

across the world in addition to 1,00,000 establishment in

India.

2. Standard Fees

The annual fees for Gold and Classic Cards are given

below :

Gold Card Classic Card

Jointly Fees 500 300

Annual Fee 2000 700

Add-on 1000 350

3. Rewards

Cardholders will get rewarded just for using their HSBC

Globally valid card for every Rs. 100 charged to the card

holders receive 1 reward point. These paoints can be

accumulated for the year and then redeemed against card

renewal fees, gits vouchers and card upgrade fees. A

minimum of 250 points has to be accumulated in order to

start redeeming.

4. Global ATM Services

Cardholders have access to cash, round the clock, at over

6,00,000 ATMs Worldwide, which include

VISA/MasterCard/Cirrus and all HSBC ATM’s Classic

cardholders can withdraw up to Rs. 25,000 per day and

Gold Card holders can withdraw up to Rs. 50,000 per day

within the overall specified limit.

5. Finance Charges

You can get up to 48 days free credit without any finance

charge being levied to your credit card account provided

your credit card outstanding shows in your statement is

settled in full on the due date. Finance charges will be

applicable, if only part payment is made, at 2.95% on a

average daily balance basis from the date of statement.

6. Travel Privileges

Cardholders can get a discount of 30% on basis domestic

airfares and 5% on basis international airfares when they

purchase their air tickets through credit card from

International Travel House (ITH). In addition ITH will deliver

the tickets free of charge within city limits.

7. Insurance Benefits

Our package of insurance benefits for gold cardholders is

amongst the best in the industry.

Accident Insurance: Cardholders are entitled to free

insurance cover of Rs. 15,00,000 for a Classic card in the

event of loss of lives due to an air accident. For loss of life

due to other accidents the cover is Rs. 4,00,000 and Rs.

1,50,000 for Gold and Classic cards respectively.

Purchase Protection: All items bought using the card are

insured against damage or loss due to fire or theft for a

180-day period up to a value of Rs. 50,000 for a Gold Card

and Rs. 30,000 in case of a Classic Card.

Zero Lost Card Liability :In case a cardholder loses

her/his card her/his will not be liable for any charges

incurred on the card after the loss has been reported to the

bank in writing.

Credit Shield: In the event of Accidental death, payment of

outstanding on the card is waived up to Rs. 40,000 for Gold

cardholders and Rs. 20,000 for Classic cardholders.

Lost Baggage Insurance: Cardholders are covered for

loss/theft of checked baggage during domestic and

international flights for up to US$1,200 for Gold cardholders

and up to Rs. US$600 for Classic cardholders. This cover

is applicable after 48 hours of arrival at your destination.

Enhanced Travel Insurance Benefits for GOLD CARD

holders :-

Delay in checked baggage : Gold cardholders are

covered for US$ 300 in the even of checked baggage being

delayed for more than 6 hours during domestic or

international flights from the scheduled arrival time at the

destination

Hijack Protection : IN the event of your flight getting

hijacked, Gold Cardholders can claim US$250 per hours

every that the flights is hijacked. This cover is applicable

post 12 hours of hijacked up to a maximum of 36 hours

8. Global Calling Card

Cardholders will get a free calling card from Global One.

Which enables them to make long distance calls while

traveling overseas at every competitive rates. These calls are

billed to the cardholder’s credit account and are payable in

Indian rupees.

9. Zero Petrol Surcharge

Cardholders are entitled to a reimbursement of petrol

surcharge that is normally levied on credit card fuel

purchases for amounts between Rs. 400 to Rs. 2500 incurred

at any petrol pump at any city in India.

Features Advantages Benefits

Worldwide accepted

Accepted at all outlets worldwide (18 Million establishments)

No need to carry cash while shopping in India or abroad.

Convenience

Low Risk

Free Credit Period

Pay only 5% of the amount roll over the credit

Make only minimum payments & can avail the credit facility.

Flexibility of payment

Global ATM Services

Withdraw cash on CC (40% of the total Cr. Limit sub. To availability).

Up to Rs. 50,000/- per day

Easy access to funds.

Easy liquidity.

No need to have bank a/c & can still withdraw cash in case of emergency.

Access to your bank a/c with your credit card (ATMC)

At ATMs in India, you can request statements, cheque books, perform banking operations.

No need to have 2 different cards & 2 different pins.

Bonus Rewards Programme

For every Rs, 10/- purchase you get 1 reward point which has value of Re. 1/-.

After accumulating 250 bonus points, the same can be redeemed against card renewal fees and quality items.

Saves money

Insurance * in the event of loss baggage or theft,

Safety

Privileges

a. Lost baggage

insurance covered up to US$ 1200

Free Insurance

b. Accident Insurance

In case of death due to ait accident, insurance cover up to 20 lacs & in case of death due to other accident, insurance cover upto 2 lacs

There is waiver of payment of o/s on the card up to Rs. 40k

Protection

Safety

Free Insurance

C. Purchase Protection

If the items purchased during CC, is danaged or lost due to theft or fire, insurance cover available up to value of Rs. 50k.

Claim can be made within 180 days period from date of purchase.

Safety

Minimum loss

D. Zero Lost Card

Liability

In case of card loss & reporting the same immediately to the bank will prevent any misuse of card

Protection against misuse

Security

E. Travel

Insurance:

Delay in checked baggage

GCH are covered up to US$300 for emergency purchase of replacement items.

Convenient

Saves Money

Loss of passport & travel documents

C/h reimbursed up to US$ 500 for expenses incurred in btaining alternate documents in case of loss of original documents

Saves Money

Convenient

Travel Privileges Airline tickets can be booked using

Saves Money

CC at Spl. Dscount of 3.5% on basic domestic air fares & 6.5% on basic intal, air fares.

The rickets will be delivered to door step without any extra charges.

Convenience

GLOBAL ONE

Calling card

Free of charge

Amount billed on CC which reflects in monthly statement

Amount billed in INR which saves on foreign exchange.

Can make long distance cals from any telephone booth while traveling overseas.

Calls can be made even without cash.

Easy access to telephones.

Convenience

ADD-ON-CARDS Primary card holder can apply for up to 3 add-on-cards (only blood relations)

No joining fees

No documentation required

Add-on cards also enjoy the same benefits as primary card

Saves Time

Saves Hassles

CARD RENTAL SERVICES

GCH can avail spl. Car rental services & exclusive discounts @ 20% on basic rates, extra hours & Extra kms. ( Auto riders Rent-a-car)

Convenient

Saves Time

DRAFT ON CALL Normal bill payments can be made using this facility

Drafts can be ordered against CC over the phone

Convenient

Saves time

& the same will be delivered to the doorstep.

EMERGENCY ASSISTANCE SERVICES

GCH receive global assistance 24 hours a day & 7 days a week.

Assistance is available by pacing collect call to respective centers.

The assistance services also include legal, medical, travel & other services.

Global assistance

Toll free numbers

Confidence

Quick service.

CUSTOMER VALUE & SATISFACTION

Over 38 years ago, peter drucker deserved that a company first task is

“to create customer”. However, customer face a vast array of product

and brand choices, prices, and suppliers. How do they make their

choices we believe that customers estimate which offer will delivers the

most value customers are value maximizes, within the bound of search

costs and limited knowledge, mobility, and income they form an

expectation of value and act on it. Whether or not the offer lives up to

the value expectation offer both satisfaction and repurchase probability.

Our premise is that customer will buy from the firm that they see

as offering the highest precision value.

CONSUMER SATISFACTION

Today’s companies are facing their toughest competitors ever.

Therefore companies need to more rapidly into new economy and

employ internet, wireless and other technologies to achieve a

competitor advantage.

Here is big question that how companies can go about wailing

customers and out performing competitors. The answer lies in

doing a better job of meeting or exceeding customer expectations

be coz this is costumer centered era.

“John chambers , CEO of Cisco systems put it will “Make your

customer the center of your culture” companies are adept at

building customers, not just product, they are skilled in market

engineering, not just product engineering.

TOTAL CUSTOMER SATISFACTION

Whether the buyer is satisfied after purchase depends on the offer’s

performance in relation to the buyer expectations. In general,

satisfaction is a person’s feelings of pleasure or disappointment

resulting from comparing a product’s perceived performance (or

out come) in relation to his or her expectations. If the performance

falls short of expectations the customer is dissatisfied. If the

performance matches the expectations, the customer is satisfied. It

the performance exceeds expectations the customer highly,

satisfied or delighted.

MEASURING SATISFACTION

Although the customer centered firm seeks to create high customer

satisfaction, that is not main goal. If the company increases

customer satisfaction by lowering its price or increasing its

services, the result may be lower profits.

The company might be able to increase its profitability by means

other than increased satisfaction for example by improving

manufacturing process or investing more in R&D) ultimately, the

company must operate on the philosophy that it is trying to deliver

a high level of customer satisfaction subject to adverting

acceptable levels of satisfaction to the other stake holder given its

total resources.

When customers rate their satisfaction with an element of the

company’s performance say, delivery the company need to

recognize that customers vary in how they define good delivery. It

could mean early delivery, on time delivery, order completeness

and so on. Yet if the company had to spell out every element in

detail, customer would face a huge survey questionnaire. The

company must also realize that two customers can report being

“highly satisfied” for different reasons one may be early satisfied

most of the time and the other might be hard to please but was

pleased on this accession.

Cleans formal has developed the American customer satisfaction

index (ACSI) to measure the perceived satisfaction consumers feel

with different firms, industries, economic sector and national

economics.

RESEARCH METHODOLOGY

1. Nature of research –Descriptive

2. Research approach- Sample survey

3. SAMPLE SIZE – 100 No.

4. Method of research –Questionnaire

5. Research Instrument-Random Sampling

6. Findings

7. Suggestions

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the

research problem. It my be understood as a science of studying

how research is done systematically & scientifically. In it we study

the various steps that are generally adopted by a researcher in

studying his research problem along with the logic behind them.

Researcher also need to understand the assumptions underlying

various techniques they need to know the criteria by which they

can decide that certain techniques & procedures will be applicable

to the certain problems and other will not.

The scope of research methodology is wider than that of research

method. Thus when we talk of research methodology we will not

only talk of the research method but also consider the logic behind

the methods we use in the context of our research study and

explain why we are using a particular method or techniques and

why we are not using others so that the research result are capable

of being either by researcher himself or others. Why a research

study undertaken, how the research problem has been undertaken,

how the research problem has been define, in what way and why

the hypothesis has been formulated. What data have been collected

and what particular method has been adopted why particular

techniques of data collections has been used and a host of similar

other questions are usually answered when we talk of research

methodology concerning a research problem or study.

In research methodology, research process, research design,

sampling design method of data collection are used in this project.

RESEARCH PROCESS

Research process consist of action or steps necessary for

effective carry out research and the desired of this steps-

1. Formulating the Research problem- The best way of

understanding the problem is to discuss it with ones own

colleagues or with those having some expertise in the matter.

2. Extensive Literature Survey- After formulating the

problem a brief summery of its should be written down. At

this function research should undertake extensive literature

survey concerned with the problem.

3. Development of working hypothesis- After extensive

literature survey, researcher should state in clear terms the

working hypothesis.

4. Preparing the research design- The research problem has

bee formulated in clear cut terms. The researcher will be

required to prepare a research design.

Basically there are three types of research design.

- Exploratory research design.

- Descriptive research design.

- Hypothesis testing design.

5. Determining the sample designs- All the items under

consideration in any field of inquiry constitute a universe or

population. There are two types of sampling method are used

to design sample.

- Random sampling

- Non random sampling

RESEARCH DESIGN

A research design is the arrangement of conditions for collection

and analysis in a manner that aims to combine relevance to

research purpose in economy in procedure.

In this research project descriptive research design are

designed. Because descriptive research studies are those

studies which are concerned which describing the characteristics

of particular individual or a group.

And it is used as-

- Formulating the objective of the studies.

- Designing the methods of data collective

- Selecting the sample

- Collecting the data

- Processing and analyzing the data

- Reporting the finding

SAMPLE DESIGN

To prepare sampling design we should follow these points.

1. Type of universe

2. Sampling unit

3. Source list

4. Size of the sample

5. Parameters of interest

6. Budgetary constraint

7. Sampling procedure

METHOD OF SAMPLING DESIGNMETHOD OF SAMPLING DESIGN

Sampling designs are basically of two types:-

1. Random sampling

2. Non-Random sampling

Random Sample: Random Sampling method is any method of

sampling that utilize some type of random selection is the most

important type of sampling. A ransom sample allows a known

probability to each unit when being selected. Such sampling is

very commonly used in lotteries and raffles. For ransom selection

the researcher has to assure that the different units in the

population have equal probability of getting selected. For this now

a days one uses computer for generating random number for

random sampling.

Non –Random Sapling : This type of sampling does not include

any basis for estimating the probability of including units of

population in the sample. The units of population are selected

deliberately assumed to adequately present the population.

METHOD OF DATA COLLECTION

In this research project simple questionnaire method are used.

Questionnaire method is that method where a questionnaire is give

to the person which is concerned with the topic and request to fill

up this questionnaire.

A questionnaire consist of a number of questions printed in a

definite order on a form.

ADVANTAGE OF QUESTIONNAIRE METHOD

1. There is low cost when the universe is large and is widely

spread geo graphically.

2. It is free from the bias of interviewer.

3. Large sample can be made use of and thus the

4. Respondent has adequate time to give well thought answers.

DATA ANALYSIS

GRAPHICAL PRESENTATION

You think promise made by credit card company are fulfilled.

Strongly agree 4

Somewhat agree 8

Neither agree - nor disagree 33

Somewhat disagree 48

Strongly disagree 7

You like to recommend your credit card to other

Strongly agree 14

Somewhat agree 16

Neither agree-nor disagree 20

Somewhat disagree 39

Strongly disagree 11

You feel taking credit card was a good discussion

Strongly agree 13

Somewhat agree 26

Neither agree-Nor disagree 27

Somewhat disagree 24

Strongly disagree 10

Which factors influenced you most to buy credit card

Price 11

Presentation of sales man 13

Free credit period 7

Teachers 6

Insurance cover 18

Cash withdrawal 11

Add on card 7

Reference group 20

Any other 7

From where did you come to know about your credit card

Salesman 36

TV 11

Newspaper 9

Bill board 8

Reference group 28

Any other 8

Would you like to switch over to another company’s credit card

Yes 47 No 53

Do you feel services provided by credit card are according to your

expectations?

Yes 23 No 77

Do you thick interest rate charged by credit card companies is reasonable?

Yes 6 No 94

After taking credit card is there any increase in your expenditure?

Yes 73 No 27

Do you feel credit card industry is a sinking boat in Indian context

Yes 61 No 39

FINDINGS

1. Most of the answer our indicate towards disagreement, it clearly

shows customers thick that premises made by credit card

comprises are not fulfilled; there why filled premises may be like

difficulty in claming insurance or free services.

2. Customers are unsatisfied with credit card services so they

spread negative word of much when they are asked that is why

50% of customers don’t want to recommend their credit cards to

others.

3. This answer is spread evenly oven somewhat agree, neither

agree nor disagree somewhat disagree. People who some what

agree because credit card is necessity for them as they have to

travel a lot & credit card provides them security & people who

somewhat diagram are because credit card didn’t meet their

expectation.

4. As we can see friends or the existing users of credit card

significantly influenced. The purchase of credit card which

indicate. That it is the most creditable source of information

insurance policies are also major attraction for the customer &

presentation 7 the way in which salesman convince the

customers also plays important.

5. The awareness about the credit card is through salesman, so

salesman are the front and employee who play an important

role in making perception of credit cards friends and colleagues

also help in creating brand awareness.

6. Customers are almost evenly divided over this question which shows

that them is no major product differentiation in the credit card and

customer perceive that all of the them are similar.

7. Clearly, the services of credit cards have not met the expectations of

customers

8. the interest changed by credit card companies amount to 36% per

annum which in very high customers are aware of this fact & almost

all of them expressed this displeasure.

9. Credit card have led to increase in the expenditure of people, People

who have answered no, have not used credit cards even once.

10.Almost two third of people feel that due to debit cards & other

facilities days of credit cards are going to be over.

LIMITATIONS

Despite the possible efforts in concluding the research, they were

some unavoidable situations, which limited the scope of the project.

The study was restricted to Delhi, Noida & Ghaziabad.

Time was the biggest constraint as all questionnaires were to

be filled in person to actual views, but all efforts were made to

get information relevant to the research.

There may be some disepecies in views as some, people might

give false information in questionnaire, as they might not be in

filling the form.

The sample size of 100 is small so there may be difference in

the reality and the findings.

CONCLUSION

During our project we got an opportunity to study the credit card industry of India. It is a relatively new business with intense competition & each firm trying to capture each others market share. It was a great learning experience & we concluded following points:

1. Credit card industry is still in a nascent phase in India with an underdeveloped infrastructure.

2. Acceptability of credit cards is limited to large cities having malls, big retail stores

3. The penetration of credit cards is limited to large cities i.e. credit card companies don’t have many customers in tier II & tier III cities.

4. The companies are indulging in aggressive marketing; they are not really concerned in satisfying the customer’s need.

5. There is no major product differentiation in the various credit cards; all of them are providing similar services.

6. The companies are not trying to retain the customers; they are more interested in broadening the customer base.

At last we conclude that CreditCard is at declining phase in India.

RECOMMENDATION

(1)Company should advertisement through various things

i.e advertisement through print media electronic media

and distribution network.

(2)As we have seen in the study persons are must affected

by price & quality factor. The company should

concentrate over the price factor of the program so that

new customer could be attracted to wards the program

although quality factor of the program is satisfactory.

(3)The company must conducted the satisfaction survey

time to time so that company could know the

satisfaction level of the consumer. It will be more

beneficial to company in making new strategies &

policies.

(4)Most of the person, which participated in the survey

have said that the program should be divided in to

small packages. So that any one could buy it easily.

(5) The company price should be kept low in comparison

to competitors product price so that company can earn

more profit by selling large volume.

(6) The company’s awareness is low, the company should

be more concentrate to increase the awareness of the

company. The company can use many marketing total

to perform this work.

(7)The company should be conducted the demo of

program complaint, policies & suggestion. It can

improved it market share and consumer satisfaction.

QUESTIONNAIRE

1. You think promise made by credit card company are fulfilled.

a. Strongly agree

b. Somewhat agree

c. Neither agree - nor disagree

d. Somewhat disagree

e. Strongly disagree

2. You like to recommend your credit card to other

a. Strongly agree

b. Somewhat agree

c. Neither agree-nor disagree

d. Somewhat disagree

e. Strongly disagree

3. You feel taking credit card was a good discussion

a. Strongly agree

b. Somewhat agree

c. Neither agree-Nor disagree

d. Somewhat disagree

e. Strongly disagree

4. Which factors influenced you most to buy credit card

a. Price

b. Presentation of sales man

c. Free credit period

d. Teachers

e. Insurance cover

f. Cash withdrawal

g. Add on card

h. Reference group

i. Any other

5. From where did you come to know about your credit card

a. Salesman

b. TV

c. Newspaper

d. Bill board

e. Reference group

f. Any other

6. Would you like to switch over to another company’s credit card

Yes No

7. Do you feel services provided by credit card are according to

your expectations?

Yes No

8. Do you thick interest rate charged by credit card companies is

reasonable?

Yes No

9. After taking credit card is there any increase in your

expenditure?

Yes No

10. Do you feel credit card industry is a sinking boat in Indian

context

Yes No

BIBLIOGRAPHY

2. Book by Philip Kotler on Marketing Management

3. A book on Marketing Research by Luck & Rubin

4. A book on Marketing of Service by Vallarie A. Zeithaml & Mary Joe Bitner.

5. Training Material presided by HSBC.

6. www.indianinfoline.com

7. www.creditcardsbasic.com

8. www.mycreditcard.com