Perception of customers towards services & products of J&K Bank

SHWETANSHU GUPTA(49)SIDHARTH GUPTA(50)SHIVANI GUPTA(46)

SUSHANT GUPTA(47)

INTRODUCTION TO J&K BANK• The Jammu and Kashmir Bank was founded on October 1, 1938 under letters patent issued by

the Maharaja of Jammu and Kashmir, Hari Singh & commenced business on July 4, 1939 .

• It is considered as the first of its nature & composition as a State owned bank in the country. • Inspite of a government equity holding of 53 per cent, Jammu & Kashmir Bank (J&K Bank) is

regarded as a private sector bank .

• J&K Bank is the one and only banker and lender of last resort to the Government of J&K.

• It is the only private sector bank designated as agent of RBI for banking

• Services of J&K Bank are utilized for the purposes of disbursing the salaries of Government officials. J&K Bank collects taxes pertaining to Central Board of Direct Taxes, in Jammu & Kashmir.

Mission, Vision and Philosophy

• VISION OF THE BANK• The Bank's vision is “To catalyze economic transformation and capitalize on growth”. The

bank aspires to make Jammu and Kashmir the most prosperous state in the country, by helping create a new financial architecture for the J&K economy, at the center of which will be the J&K Bank. The Bank is committed to achieve healthy growth in profitability and simultaneously to remain consistent with the Bank's risk appetite and at the same time ensuring the highest levels of ethical standards, professional integrity and regulatory compliance.

• MISSION OF THE BANK• The company’s mission is two-fold: To provide the people of J&K international quality financial

services and solutions and to be a super-specialist bank in the rest of the country. The two together will make it the most profitable bank in the country.

• PHILOSOPHY: • The Bank’s Corporate Governance philosophy is woven around

its total commitment to the ethical practices in the conduct of its business, while striving in the constant quest to grow with profits and enhance shareholders value and align the interests of the Stakeholders and Society

Products and services• Loans• Insurance• Tax planning• Savings and deposits• Cards• Mutual funds• Non-resident banking

SERVICE QUALITY, SATISFACTION & PERCEPTION

When a consumer/customer is contented with either the product or services it is termed satisfaction. Satisfaction results in person’s feelings of pleasure or disappointment that results from comparing a product’s perceived performance or outcome with their expectations (Kotler & Keller, 2009, p. 789).

PROPOSED MODEL

This model has been very popular with academics and researchers to assess the customer perception of service quality for a variety of service industries. The five dimensions of service quality include:

• Tangibility (appearance of physical components);

• Reliability (accuracy of performance)

• Responsiveness (promptness and helpfulness)• Assurance (knowledge and courtesy of

employees)

• Compliance (follows rules and regulations)

RESEARCH METHODOLOGY• RESEARCH PROBLEM

To find the Customer’s Perception toward various products and services of J&K bank.

• SOURCE OF INFORMATION

Since this research is related to the customer’s perception, so the important sources of information are customers themselves.

• INSTRUMENT OF DATA COLLECTION

Primary source: Questionnaire

Secondary source: J&K bank’s official website

• SAMPLE SIZE

Sample size is 40 respondents. Only 37 questionnaire were accepted. 3 were rejected due to incomplete information.

Method of sampling: convenience samling

HYPOTHESES

SNO OBJECTIVE HYPOTHSES TEST

1 To identify the perception of customers on

the basis of gender and marital status

towards products and services of J&K

bank.

 

Demographic profile wise (gender, marital status)

customer differs with regard to perception towards

J&K bank.

 

T-test

2 The objective is to study the impact factor

of tangibility, reliability, responsiveness ,

assurance and compliance on the

perception of customers towards products

and services of J&K bank.

 

The perception of customers towards products and

services of J&K bank is significantly predicted by

tangibility, reliability, responsiveness and

compliance. and assurance.

 

COORELAT

ION

DATA ANALYSIS AND INTERPRETATIONS.NO PARTICULARS DESCRIPTION FREQUENCIES PERCENTAGE

(%)PIE-CHARTS

1 Gender MaleFemaleTotal

231437

54.145.9

100.0

2 Age Below 35 years35-45 yearsAbove 45 yearsTotal

2395

37

62.224.313.5

100.0

3 Marital Status MarriedUnmarriedTotal

201737

62.237.8

100.0

S.NO PARTICULARS DESCRIPTION FREQUENCIES

PERCENTAGE(%)

PIE-CHARTS

4 Education IlliterateSecondaryGraduateTotal

117

1937

29.718.951.4100.0

  

5 Amount of loan availed

Upto 5 lakhs5-10 lakhsAbove 10 lakhsTotal

169

1237

43.218.951.4100.0

  

CORRELATION BETWEEN RELIABILITY AND PERCEPTION OF CUSTOMERS TOWARDS P/S OF J&K BANK

S.NO R1 R2 R3 R4 R5 R6 R7R1Pearson Correlation

1

R2Pearson Correlation

0.12**

1

R3Pearson Correlation

0.04**

0.32**

1

R4Pearson Correlation

0.37**

0.48**

0.31**

1

R5Pearson Correlation

0.16**

0.25**

0.16**

0.20**

1

R6Pearson Correlation

0.08**

0.49**

0.49**

0.73**

0.13* 1

R7Pearson Correlation

0.48**

0.37**

0.48**

0.50**

0.08

0.40*

1

OUTPUTS FROM T-TEST

S.NO STATEMENTS DESCRIPTION MEAN T-VALUE P (significance value)

T1 J&K Bank provides you visually appealing materials associated with services

Married Unmarried

2.70

2.41

0.70

0.73

.002

T2 J&K Bank offers speedy and efficient transactions

Married Unmarried

2.75

3.18

-1.21

-1.23

0.067

T3 J&K Bank has convenient opening business hours

Married Unmarried

3.10

2.76

1.21

1.26

0.004

T4 J&K Bank offerings (products/services) are adequate to meet your needs

Married Unmarried

2.60

2.14

0.52

0.52

0.065

T5 J&K Bank products/services are attractive than its competitors

Married Unmarried

3.35

2.71

1.70

1.71

0.078

T6 J&K Bank provides all the services (money transfers, insurance, savings, etc.)

Married Unmarried

3.25

2.88

1.14

1.16

0.000

T7 You are satisfied with the tangibility of products and services

Married Unmarried

3.95

3.12

2.40

2.42

0.064

INTERPRETATIONS

• “There is a positive association between reliability and perception towards J&K Bank’s products and services”. 0.08 (J&K Bank involves hidden policies).

• “There is a positive association between responsiveness and perception towards J&K Bank’s products and services”.

• “There is a positive association between assurance and perception towards J&K Bank’s products and services”. 0.57 (J&K bank don’t fully assures about the rate of interest), 0.236 (customers aren’t satisfied with the rate of interest charged by J&K bank)

• “There is a positive association between compliance and perception towards J&K Bank’s products and services”. 0.259 (J&K bank don’t Follow its policy.

• “Marital status wise mean difference exists with regard to the perception of tangibility of products and services of J&K Bank” stands partially accepted.

• “Gender-wise mean difference exists with regard to the perception of tangibility of products and services of J&K Bank” stands accepted.

SUGGESTIONS TO THE BANK• Bank should educate its customers about its terms and conditions clearly. Bank

shouldn’t involve any hidden policy while dealing with customers.• J&K bank should follow its policies in a strict manner.• Perception of married customers towards tangibility of products is good, while

that of unmarried customers is low. J&K bank should make its products and services more appealing to its unmarried customers as they are the active spenders.

• Perception of male customers towards products and services of J&K bank is good, while that of female customers, in comparison to male customers isn’t so significant. Thus J&K should offer more services and products that appeal to female customers.

• J&K bank should establish single window operating system. Customers feel inconvenience while going through lengthy procedures of bank.

• The study was restricted to J&K bank customers only.• The study is restricted to corporate customers residing in Jammu region

only.• Considering the size of population that we have, the sample size that we

have taken is very small.• Due to human behavior, element of subjectivity is present.• Data given by the respondents are limited to their own attitude, perception,

knowledge, feeling and awareness. So generalization of this research work isn’t possible.

LIMITATIONS OF THE RESEARCH

FUTURE SCOPE:

• This research work can be extended by taking into consideration larger sample size, so that results can be generalized.

• Other banks can be included (HDFC,ICICI,PNB etc.)• Perception of private bank customer and public bank customer

could also be compared.• Perception of bank employees towards banks and services

could also be included.• Perception of customers residing outside J&K and using J&K

bank services could be taken into consideration.