Report on Dutch Bangla Bank
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Term Paper on
Dutch Bangla Bank Ltd.Service Analysis
Course: MKT 412 (Service Marketing)
Submission Date: 3 April 2013
Submitted to:
Saadia Shabnam
Senior Lecturer
Department of Business Administration
East West University, Dhaka
Submitted by:
1. Chowdhury Ishita IsratId. 2009-1-10-198
2. Jubair RahmanId. 2009-2-10-155
3. Farhana SharminId. 2010-1-10-128 (Sec-1)
4. Sanjib DasId. 2009-2-10-228
East West University
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To
Saadia Shabnam
Senior Lecturer
Dept. of Business Administration
East West University, Dhaka
Sub: Submission of Term Paper
Dear Sir,
It is our pleasures to submit term paper on Service Analysis of Dutch-Bangla Bank Ltd.
Bangladesh, as a part of our B.B.A. Program. We tried our best to gather relevant information for
preparing a complete report by following our honorable course instructors instruction. Without
your sincere co-operation and proper guideline, it would not possible for us to prepare the report.
For this act of kindness, we are grateful to you.
This report is not free from mistake due to some limitations. We hope you accept it with gracious
consideration.
Sincerely yours1. Chowdhury Ishita Israt; Id. 2009-1-10-1982. Jubair Rahman; Id. 2009-2-10-1553. Farhana Sharmin, Id. 2010-1-10-128 (Sec-1)4. Sanjib Das; Id. 2009-2-10-228
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Table of Contents
Introduction.................................................................................................................................... 4
Marketing Mix- 7Ps.............................................................................................................. 5Product Mix........................................................................................................................... 5
Price Mix ....6
Place Mix ...8
Promotion Mix....9
Different Ways of Promotion.10
Service Blueprint ................................................................................................................. 12
Servicescape ........................................................................................................................ 13
Measuring Service Quality by SERVQUAL Method ................................................................ 15
SERVQUAL Instruments- Expectations.15
SERVQUAL Instruments- Perceptions...17
Service Recovery.20
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Introduction
Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs and
satisfaction and to become their first choice in banking. Taking cue from its pool esteemed
clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that upholds and
epitomizes its vaunted marquees "Your Trusted Partner"
It has the largest ATM network in Bangladesh with 2375 booths and 126 branches around the
country. Along with the most accessible banking services DBBL has given its customers the
assurance of safety and security.
Origin
We have been assigned to prepare this report by our honorable instructor of Service
Marketing course Ms. Saadia Shabnam as a requirement of the completion of the course.
Objective
The objective is to overview the service process, efficiency and recoveries of Dutch Bangla
Bank Ltd.
Methodology
Data are useful only when we analyze them. After collecting the required data we analyzed
the findings. The findings of the report would be analyzed through SERVQUAL analysis and
other tools, which would make the findings more meaningful through graphical
presentation.
Limitation:
This report doesnt include detailed description on several issues like the problems to
promote. Also it lacks information about how to motivate the workers to improve their
performance and how they can hold their customers with new offer.
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Marketing Mix of Dutch Bangla Bank- 7Ps
1. PRODUCT MIXA product can be defined as a bundle of utilities consisting of various product featuresaccompanying services. Bank services are viewed with not just things that are created with value
but they are seen in terms of satisfaction they deliver. E.g. A bank account is seen in terms of
customer satisfaction such as safety, convenience of paying dues keeping records status,
transferring funds, etc.
DBBL Products(i) DEPOSITS:Savings, current, fixed etc.(ii)ADVANCES:
a. Fund Oriented: Term loan, Clean loan, Bill discounting, Advancing, Pre-shipment and post-shipment finance, Secured and unsecured lines of
credit.
b. Non-Fund Oriented: Guarantees, Letter of credit.(iii)International Banking:Letter of credit, Foreign currency
(iv)Consultancy(v)Miscellaneous
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PRODUCT LEVELSCore Benefit:
It is the main or core reason why the customer will buy the service of DBBL. But customers
do not buy the core product, they only buy the benefit. The role of DBBL is to convert thecore products into a generic product which satisfies the needs of the customer. I.e. In case of
bank core value is to deposit and withdraw money.
Basic Product:
The core benefit is converted into a basic product. That is the service can be used by the
customer in order to fulfil his/her needs. It is basically colour, brand name, shape, size,
quality, branding and packaging. I.e. in DBBL basic product is to provide savings a/c, current
a/c, deposits, loans, and overdraft facility.
Expected Product:
It refers to the set of attributes and conditions expected by the customers when they purchase
the service. I.e. if the customer expects the loan to be given within a day and if he gets it in a
day, DBBL has met the expectations of the customer.
Augmented Product:
It is the additional feature that the banks provide which exceeds the customers expectations.
I.e. when one opens a Shuvidha account with DBBL gets an ATM card free. The bank
marketer must offer a multi dimensional product or what is called a product package
Potential Product:
Innovations and product differential is the bases of a Potential Product. If DBBL alter its
services according to the requirements of the individual customers it reaches this level. It is
future oriented. I.e. in case of DBBL the potential product is what kind of future product they
are going to introduce like low interest rate on home loan or personal loan.
2. PRICE MIXThe price mix in the DBBL is nothing but the interest rates charged by bank. In todays
competitive scenario where customer is the king, the bank has to charge them interest at a rate in
accordance to the Bangladesh Bank directives. DBBL also compete in terms of annual fees for
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services like credit cards. Another important aspect of DBBLs pricing policy today is the
interest charged on the Home Loans and Car Loans.
Lets understand this with an example. A particular buyer approaches a bank for a car loan for a
period of 3 years. He is charged Rs. 20,000 as interest. However, if a sale representative of
DBBL comes to know of this deal, he will try to attract the customer by giving him a better deali.e. a loan at a lower rate on interest. In this way, it is the customer that ultimately benefits.
Here is an example of some of the prices charged by ICICI bank for their services:
Card Type Issuance Fee (1st year) Annual Fee(2nd year onwards)
DBBL
NexusClassic FREE
460 (with VAT)
DBBL
Nexus
Silver
1000 1000
DBBL
Nexus
Gold
1500 2000
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THE MOST FAVORABLE PRICING STRATEGY
The most favourable pricing strategy should ensure maximum satisfaction to both the bank as
well as the customers. The price should be set in such a manner that the customer is assured that
he is not being cheated or overcharged by the bank and at the same time the bank is able to reap
maximum profits. Such a pricing stand helps the bank get maximum sales as well as profits sincethe customer feels that by entering such a transaction he is winning.
3. PLACE MIXPlace mix is the location analysis for banks branches. There are number a factors affecting the
determination of the location of the branch of bank. It is very necessary for a bank to be situated
at a location where most of its target population is located.
Some of the important factors affecting the location analysis of a bank are:
1.It is not necessary that all the above conditions have to be satisfied while selecting the location
but it should try and satisfy as many of them as possible.
1. The Trade area2. Population characteristics3. Banking structure4. Proximity to other convenient Outlets5. Real estate rates6. Proximity to public Transportation7. Drawing time8. Location of competition9. Visibility
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4. PromotionPromotion is nothing but making the customer more and more aware of the services and
benefits provided by the bank. The banks today can use a lot of new technology to
communicate to their customers. Along with television media and print media two of the
fastest growing modern tools of communicating with the customers are:
1. Internet Banking2. Mobile Banking
This can be better explained with an example:
SMS services:
SMS functions through simple text messages sent from your cellular phone. These messages are
recognized by DBBL to provide you with the required information.
Customer can register at any authorized agent point of DBBL who can display 'DBBL Agent
Certificate' and 'DBBL Mobile Banking Banner'. Customer can cash-in (deposit) at any DBBL
Branch, DBBL nominated- own agent, UISC, Banglalink, Citycell & Airtel retail points and
Mobicash marked outlets of Grameen Phone.
A bank may have very attractive schemes and services to offer to their customers but they are of
no use if they are not communicated properly to the customers. Promotion is to inform and
remind the individuals and persuade them to accept, recommend or use of product, service or
idea. However there some very important points that is to be considered before the promotion
strategy is made. These points are:
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Different Ways of Promotion
1.Public Relations:In todays competitive scenario developing strong public relations is very important for any
bank to be successful. DBBL has a separate Public Relations department. However
primarily it is considered as a responsibility of the DBBL managers to develop a steady and
strong relationship with their present customers as well as potential customers. This can
be done by a constant follow up, small programmes etc.
2. Word-ofMouth Promotion:This form of promotion is not only very effective in banking services but in any kind of
service. However it is more important in banking for the only reason that this is a service
where trust plays a very important role. If a DBBLsservices are recommended by friends,
relatives, or other well wishers the person is more influenced and inclined towards the
bank. It is very important to note that the internal employees of the bank play a very
important role in word of mouth promotion technique. This is because they can start
the process by recommending the bank to their friends and relatives and after that it is like
a chain, which spreads like a wild fire.
3.
Telemarketing:
In recent times telemarketing has gained increasing importance as an effective tool for
promotion. Telemarketing is a process of making use of sophisticated communication
network for promoting the bank. This includes promoting through television, telephone,
and radio. Nowadays, cell phones are used extensively for the same. This is the most
popular form of promotion. DBBL today have started using SMS and many other services
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supported by cell phones to provide benefits to their customers and thus have tried to
increase their customers.
4. Internet:The use of Internet as a promotional tool is increasing. DBBL is using Internet to promotetheir services. The online banking has made it even easier for the customers to avail the
banks services. No longer do people have to go to their bank branches for small petty
matters like checking their balance etc. All this can be done with the help of a few clicks.
Thus, these were the numerous ways in which DBBL is promoting its services and create
more awareness amongst the people.
5. PeoplePeople are the employees that are the service providers. In a banking sector, the service provider
plays a very important and determinant role in rendering the customers a satisfactory and a good
service. It is extremely essential that the service provider understand what his customers expect
from him. In the banking sector, the customer needs to be guided in a lot of matters, which is
possible only with the help of the service provider.
The position in the eyes of the customer will be perceived by appearance, attitude and behaviour
of the customer contact employees. Not only does the customer contact employee influence the
customers perception but also the customer base of the organization does so.
6. Process MixThe process mix constitutes the overall procedure involved in using the services offered by the
bank. It is very necessary that the process is very customer friendly. In other words a process
should be such that the customer is easily able to understand and easy to follow. Today if
particular banks formalities are long and the procedure very complicated the overall process fails
and the customer may not be inclined towards using that banks services.
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Service Blueprint of DBBL:
Se
Service Blueprint of DBBL
Physical
Evidence
Customer
Action
Onstage
EmployeeAction
Backstage
Employee
Action
Support
Services
Physical Evidence:Physical evidence is the overall layout of the place i.e. how the entire bank has been
designed. Physical evidence refers to all those factors that help make the process much
easier and smoother. For example, in case of DBBL the physical evidence will the banks
parking, exterior and interior design, front desk etc.
Website and
Internet Banking
Bank Exterior
Parking
Sitting
Arrangements
Bank Interior &
decoration
Service
Brochures
WaitingDepositing
Money
Taking
Money
Taking
signature on
Deposit slip
Withdraw
Money by
Check
Collect
Check and
verify Sign
Deliver
Money
Take
Money to
the Vault
C-1 C-2 C-3 C-4
Collecting
Debit Card
Verify
Account &
Sign
Deliver
Card
Electronic
Token System
Line of Interaction
Line of Visibilit
Line of Internal Interaction
Vault
Operation
Customer
Accounts
Internal
Database
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Customer ActionCustomer actions are the set of activities that are done by customers while taking any service. In
this case, depositing money, withdrawing, applying for loan etc. are customer actions.
Onstage ActionsOnstage actions happens when the banks employees does interaction with the customers for the
sake of delivering the service. In this case when the employees are taking money from
customers or verifying check signs these are onstage actions.
Backstage ActionsBackstage actions are the internal actions that are not visible to the customers, like, taking
customers money to the vault or updating account information etc.
Support ServicesThe internal line of interaction separates the contact employees from the support services.
These are all the activities carried out by individuals and units within the company who are not
contact employees. These activities need to happen in order for the service to be delivered. Such
as the Electronic token machine for DBBL and Vault security.
Servicescape
The banking has gathered momentum with the economic growth in Bangladesh. Banking has
now become more competitive in terms of service delivery and spectrum of products.
Servicescape is an emerging area where banks are trying to equate themselves with their western
counterparts. DBBL has designed its servicescape based on the variation of the geographical
market segment. Their Banani branch is designed with the concept of sophistication where as its
Dilkusha branch is designed with the concept of conveniences.
Following weve discussed the servicescape type and dimensions;
Facilitator:
DBBL servicescape is designed to enhance the efficient flow of activities in the bank making it
easier for both the customers and employees to facilitate daily operations.
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Service usages
1. Remote services: DBBL offers remote services tob the customers who live far away frombank facilities or are busy with their regular job. By this services cutomers canget their
job by mobile banking or e-banking.
2. Self-services: DBBL offers customer ATM booths from where they can easily draw theirmoney. DBBL also keep drop boxes and vending machine inside the bank.
3. Interpersonal services: DBBL pay attention to the needs of both customers andemployees. The physical evidences and social interaction of DBBL is very good which
attract both customer and employee very much.
Environmental dimension:
1. Ambient Conditions: The ambient condition includes dimensions like temperature, noiseetc. The temperature of DBBL is very comfortable. There are no noise which can make
customer bother. The interior and exterior design of DBBL is very attractive DBBL has
large parking lot for both employee and customer.
2. Spatial layout functionality: the DBBL branch of Banani has enough space in the waitinglobby with a black comfortable sofa. But other branches have no such space to wait forrush hours.
3. Signs, Symbols and Articrafts: the logo of DBBL is hanging everywhere inside the bankand ads are also appearing in the wall. The logo is also appearing on their checkbook and
bank brochures.
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Measuring Service Quality Using SERVQUAL
We have derived an weighted gap score for measuring the SERVQUAL survey. Weighting
depends upon how you allocate 100 points among the five SERVQUAL categories. A modified
use of the questionnaire is to limit it to just the total or average Perception score. This is calledSERVPERV and is used when Expectations are likely to be all the same (typically high).
Weights can be applied here as well. Here we have first obtained the score for each of the 22
expectation questions. Next, obtain a core for each of the perception questions. Calculate the Gap
Score each of the statements (Gap Score = PerceptionExpectation).
The SERVQUAL Instruments- Expectations:
Tangibles
1. DBBL has modern looking equipment. 4
2. DBBLs physical facilities are visually appealing. 3
3. DBBLs reception desk employees are neat appearing. 4
4. Materials associated with the service (such as pamphlets or statements)
are visually appealing at DBBL. 3
Average Tangibles SERVQUAL score 3.5
Reliability
5. When DBBL promises to do something by a certain time, it does so. 3
6. When you have a problem, DBBL shows a sincere interest in solving it. 3
7. DBBL performs the service right the first time. 2
8. DBBL provides its service at the time it promises to do so. 3
Average Responsiveness SERVQUAL score 2.75
Responsiveness
10. Employees in DBBL tell you exactly when services will be performed. 3
11. Employees in DBBL give you prompt service. 312. Employees in DBBL are always willing to help you. 3
13. Employees in DBBL are never too busy to respond to your request. 3
Average Responsiveness SERVQUAL score 3
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Assurance
14. The behavior of employees in DBBL instills confidence in you. 3
15. You feel safe in your transactions with DBBL. 416. Employees in DBBL are consistently courteous with the customer. 4
17. Employees in DBBL have the knowledge to answer your questions. 3
Average Assurance SERVQUAL score 3.5
Empathy
18. DBBL gives you individual attention. 3
19. DBBL has operating hours convenient to all its customers. 420. DBBL has employees who give you personal attention. 3
21. DBBL has your best interest at heart. 4
Average Empathy SERVQUAL scores 3.5
CALCULATI ONS TO OBTAI N UNWEI GHTED SERVQUAL SCORE
Average Tangible SERVQUAL score 3.5
Average Reliability SERVQUAL score 2.75
Average Responsiveness SERVQUAL score 3
Average Assurance SERVQUAL score 3.5
Average Empathy SERVQUAL score 3.5
TOTAL 16.25
AVERAGE (= Total / 5) UNWEIGHTED SERVQUAL SCORE 3.25
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The SERVQUAL Instruments- Perceptions:
Tangibles
1. DBBL has modern looking equipment. 5
2. DBBLs physical facilities are visually appealing. 4
3. DBBLs reception desk employees are neat appearing. 4
4. Materials associated with the service (such as pamphlets or statements)
are visually appealing at DBBL. 5
Average Tangibles SERVQUAL score 4.5
0
0.5
1
1.5
2
2.5
3
3.5
4
Average Tangible
SERVQUAL score
Average Reliability
SERVQUAL score
Average
Responsiveness
SERVQUAL score
Average Assurance
SERVQUAL score
Average Empathy
SERVQUAL score
Average SERVQUAL Score (Expectation)
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Reliability
5. When DBBL promises to do something by a certain time, it does so. 5
6. When you have a problem, DBBL shows a sincere interest in solving it. 5
7. DBBL performs the service right the first time. 5
8. DBBL provides its service at the time it promises to do so. 5
Average Responsiveness SERVQUAL score 5
Responsiveness
10. Employees in DBBL tell you exactly when services will be performed. 4
11. Employees in DBBL give you prompt service. 5
12. Employees in DBBL are always willing to help you. 4
13. Employees in DBBL are never too busy to respond to your request. 4
Average Responsiveness SERVQUAL score 4.25
Assurance
14. The behavior of employees in DBBL instills confidence in you. 4
15. You feel safe in your transactions with DBBL. 4
16. Employees in DBBL are consistently courteous with the customer. 4
17. Employees in DBBL have the knowledge to answer your questions. 4
Average Assurance SERVQUAL score 4
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Empathy
18. DBBL gives you individual attention. 5
19. DBBL has operating hours convenient to all its customers. 5
20. DBBL has employees who give you personal attention. 4
21. DBBL has your best interest at heart. 5
Average Empathy SERVQUAL scores 4.7
CALCULATI ONS TO OBTAI N UNWEI GHTED SERVQUAL SCORE
Average Tangible SERVQUAL score 4.5
Average Reliability SERVQUAL score 5
Average Responsiveness SERVQUAL score 4.25
Average Assurance SERVQUAL score 4
Average Empathy SERVQUAL score 4.75
TOTAL 22.5
AVERAGE (= Total / 5) UNWEIGHTED SERVQUAL SCORE 4.5
TOTAL WEIGHTED GAP (PERCEPTION-EXPECTATION) = 4.5 3.25 = 1.25
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Service Recovery of DBBL:
After our visit to the bank we identified some failures in the service of DBBL. And as a
conscious customer we send a complaint letter to their vigilance cell by email. In our letter to theDutch Bangla Bank Limited, we mentioned several problems that we faced as being the
customers of the DBBL.
Image: Screenshot of our complaint letter.
1stof all in our letter the complaint that has been 1 st raised is that, there are numerousnumbers of branches and ATM booth of DBBL, but when we have to use those booth, we
didnt get the proper services at all, as for an example, the Fast Track of DBBL, most of
the ATM booth remains out of services. So, what are the reasons to establish thousands
of booths without any output from those?
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From that context, we have suggested the DBBL, to emphasize on updating thenetworking of the existing booth rather than opening new booth and to put more value on
advertising.
Second complaint was also regarding the ATM booth services of DBBL. DBBL says thatthey provide at least 100 tk cash from the booth which is should be a great services for
the customers, but it is a matter of great regret that, real scenario is totally different. This
services doesnt really exist in reality as most of the time the booth of DBBL is out of
supply of 100 taka note, so we couldnt withdraw 100taka if needed, rather we have to
withdraw more though you want to withdraw only 100taka from the booth.
From that context, we suggested the DBBL in our letter to provide more 100taka note inthe booth as the customers are in a bulk amount compare to the supply of money in a
thousand available both here and there.
Third complaint in our letter is that, according to our perception the brand value of DBBLis less compare to the brand value of other commercial bank like Brac bank, United
Commercial bank etc. The policy of DBBL to advertise themselves by creating more and
more ATM booth rather than advertising more visibly to the people like to give
sponsorship to different events and tv ads.
To recover the matter, we suggested them to put more emphasize on tv advertising togive sponsorship to different events to promote themselves.
Fourth complaint in our letter to the Dutch bangle bank Ltd. About their M banking.When BKash is a far more superior choice to the people right now, the Mbanking is a
flop though they 1st started this system to our country. As a 1
st mover it is a huge
disappointment for them.
To recovery the matter, we suggested them to totally change the system, for instanceMbanking only focuses on to send the money to the villages, where Bkash focuses on
sending money to different perspective of people.
There are a few problems more of DBBL that comes in front of our eyes, but we stick to abovethese four major issues.
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Responses from DBBL:
It is needed to mention that, we gave our formal letter via mail to DBBL, and we were totally
surprised that, they gave a feedback to our mail. And after their responses, we were totally
surprised after hearing from that. We thought they really didnt care about our concerns, but they
really did.
In their feedback the authority of DBBL has been really polite and brief and very cordial.
To our 1stcomplaint, they responded that by giving thank to us for our concerns and they told us
that they are working on it. They also informed us that, it will take longer time to fulfill the
matter in a proper way.
To our 2nd
complaint, they told us that, it is not an easy task to manage to 100tk note available
for all the customers as the account holders of DBBL for using ATM booth is a large in numbers.
To our third complaint, they totally denied the fact that their brand value is less than other
commercial bank of Bangladesh. Rather they informed us that, they assisted the people who are
the victim of the recent Tornado that attacked in Brahmanbaria. They also sponsored the 3rd
golf
tournament recently. Apart from that, DBBL held a plastic surgery operation program to the acid
victim women.
To our last complaint, they told us that, they are the 1stmover on the electronic banking system
and they will retain the system as per the company policy and they are really hopeful that in the
long term they are going to bounce back with their strategies.
..