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A
PROJECTREPORT
ON
SERVICEQUALITYOFHDFCBANK
InfulfillmentoftherequirementsforInternship at HDFC as Winter Trainning for MBA
Programme.
(2013)
UNDERTHEGUIDANCEOF:
Mr. Shadab Owais
(Branch Manager)
SUBMITTEDTO: SUBMITTEDBY:
Prof.Dr.AsifFazili Salman Irshad
(Faculty) Rollno.-43
School OF Business Studies
I slamic University of Science And Technology (I UST)
Awantipora- Kashmi r- 191121
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A
PROJECTREPORT
ON
SERVICEQUALITYOFHDFCBANK
InfulfillmentoftherequirementsforInternship at HDFC as Winter Trainning for MBA
Programme.
(2013)
UNDERTHEGUIDANCEOF:
Mr. Shadab Owais
(Branch Manager)
SUBMITTEDTO: SUBMITTEDBY:
Prof.Dr.AsifFazili Salman Irshad
(Faculty) Rollno.-43
School Of Business Studies
I slamic University of Science Technology (I UST)
Awantipora- Kashmi r - 192122
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CERTIFICATE
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DECLARATION
IherebydeclarethattheProjectreporttitledSERVICEQUALITYOFHDFC
BANK is my original work and has notbeenpublished or submitted for any
degree,diplomaorothersimilartitleselsewhere.Thishasbeenundertakenforthe
purposeofpartialfulfillmentofMasters in Business Administration (MBA) Programme
at Islamic University Of Science and Technology.
Date: Salman Irshad
Rollno.:-43
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PREFACE
Thisproject report attempts tobring under one cover the entire hard work and
dedicationputinbymeinthecompletionoftheprojectworkonServiceQualityof
HDFCbank.
Ihaveexpressedmyexperiencesinmyownsimpleway.Ihopewhogoesthrough
itwillfind itinterestingandworthreading.Allconstructivefeedbackiscordially
invited.
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ACKNOWLEDGMENT
It is reallya matter ofpleasureformeto getan opportunityto thank allthe
personswhocontributeddirectlyorindirectlyforthesuccessfulcompletionof
theprojectreport,ServiceQualityofHDFCbank.
FirstofallI am extremely thankfulto my University and my Department SBS
IUST forprovidingmewiththisopportunityandforallitscooperation
and contribution.Ialso expressmygratitudeto my Projectmentorand guide
Shadab Owais (Branch Manager).Iamhighlythankfultoourrespectedprojectguide
forgivingmetheencouragementandfreedomtoconductmyproject.
Iamalso gratefulto allmyfacultymembers fortheir valuableguidanceand
suggestionsformyentirestudy.
IwouldalsoliketothanktheHDFCteamforextendingtheirvaluabletimeand
cooperation.
Salman Irshad
RollNo.: -43
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INDEX
CONTENTS PAGE NO.
1. INTRODUCTION
2. COMPANYPROFILE
3. SERVICEQUALITYINBANKS
4. RESEARCHOBJECTIVE
5. RESEARCHMETHODOLOGY
6. DATAANALYSIS
7. FINDINGSOFTHEREPORT
8. CONCLUSION
9. RECOMMENDATIONS
10.BIBLIOGRAPHY
11.ANNEXURE:QUESTIONNAIRE
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INTRODUCTION
Servicewithasmile:
Todaysfinickybankingcustomerswillsettlefornothingless.Thecustomerhascometorealize
somewhatbelatedlythatheistheking.Thecustomerschoiceofoneentityoveranotherashis
principalbankisdeterminedbyconsiderationsofservicequalityratherthananyotherfactor.He
wantscompetitiveloanratesbutatthesametimealsowantshisloanorcreditcardapplication
processedindoublequicktime.Heinsiststhathebepromptlyinformedofchangesindeposit
ratesandservicechargesandhebristleswithcustomaryrageifhisbankisslowtoredressany
grievancehemayhave.Hecherishestheconvenienceofimpersonalnetbankingbutduringhis
occasionalvisitstothebranchhealsowantsthecomfortofpersonalizedhumaninteractionsand
facilitiesthatmakehisbankingexperiencepleasurable.Inshorthewantsfinancialhousethat
willmorethanjustclearhischequeandupdateshispassbook:hewantsabankthatcaresand
providesgreatservices.
SodoesHDFCbankmeettheseheightenedexpectations?Whatarethecustomersperceptions
ofservicequalityofthebanks?WhichdimensionofservicequalityofHDFCbankisperforming
well?TofindoutanswerstothesequestionsIundertookasurveyin 1 of thebranchesofHDFCbank.
Alotofsurveyshavebeendoneinthepasttounderstandtheaspectofcustomersatisfactionand
tofindoutthecustomerfriendlybanks.MyresearchisconductedtofindoutSERVICE
QUALITYOFHDFCBANK.
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COMPANY
PROFILE
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HDFC BANK
TheHousingDevelopmentFinanceCorporationLimited(HDFC)wasamongstthefirstto
receivean'inprinciple'approvalfromtheReserveBankofIndia(RBI)tosetupabankinthe
privatesector,aspartoftheRBI'sliberalisationoftheIndianBankingIndustryin1994.The
bankwasincorporatedinAugust1994inthenameof'HDFCBankLimited',withitsregistered
officeinMumbai,India.HDFCBankcommencedoperationsasaScheduledCommercialBank
inJanuary1995.
HDFCBankcomprisesofadynamicandenthusiasticteamdeterminedtoaccomplishthevision
ofbecomingaWorld-classIndianbank.HDFCbanksbusinessphilosophyisbasedonourfour
corevalues-CustomerFocus,OperationalExcellence,ProductLeadershipandPeople.They
believethattheultimateidentityandsuccessoftheirbankwillresideintheexceptionalquality
ofpeopleandtheirextraordinaryefforts.Theyarecommittedtohiring,developing,motivating
andretainingthebestpeopleintheindustry.
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BUSINESS FOCUS
HDFCBank'smissionistobeaWorld-ClassIndianBank.Theobjectiveistobuildsound
customerfranchisesacrossdistinctbusinessessoastobethepreferredproviderofbanking
servicesfortargetretailandwholesalecustomersegments,andtoachievehealthygrowthin
profitability,consistentwiththebank'sriskappetite.Thebankiscommittedtomaintainthe
highestlevelofethicalstandards,professionalintegrity,corporategovernanceandregulatory
compliance.HDFCBank'sbusinessphilosophyisbasedonfourcorevalues-Operational
Excellence,CustomerFocus,ProductLeadershipandPeople.
MISSION STATEMENT OF HDFC BANK
WorldClassIndianBank.
Benchmarkingagainstinternationalstandards.
Tobuildsoundcustomerfranchisesacrossdistinctbusinesses
Bestpracticesintermsofproductofferings,technology,servicelevels,riskmanagement
andaudit&compliance
VISION STATEMENT OF HDFC BANK
TheHDFCBankiscommittedtomaintainthe highestlevelofethicalstandards,professional
integrityandregulatorycompliance.HDFCBanksbusinessphilosophyisbasedonfourcore
valuessuchas:-
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1.Operationalexcellence.
2.CustomerFocus.
3.Productleadership.
4.People.
TheobjectiveoftheHDFCBankistoprovideitstargetmarketcustomersafullrangeof
financialproductsandbankingservices,givingthecustomeraone-stepwindowforallhis/her
requirements.TheHDFCBankplusandtheinvestmentadvisoryservicesprogramshavebeen
designedkeepinginmindneedsofcustomerswhoseeksdistinctfinancialsolutions,information
andadviceonvariousinvestmentavenues.
BUSINESS STRATEGY
IncreasingmarketshareinIndiasexpandingbanking
Deliveringhighqualitycustomerservice
Maintainingcurrenthighstandardsforassetqualitythroughdisciplinedcreditrisk
management
Developinnovativeproductsandservicesthatattracttargetedcustomersandaddress
inefficienciesintheIndianfinancialsector.
DISTRIBUTION NETWORK
HDFCBankisheadquarteredinMumbai.TheBankatpresenthasanenviablenetworkofover
1229branchesspreadover444citiesacrossIndia.Allbranchesarelinkedonanonlinereal-time
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basis.Customersinover120locationsarealsoservicedthroughTelephoneBanking.TheBank's
expansionplanstakeintoaccounttheneedtohaveapresenceinallmajorindustrialand
commercialcenterswhereitscorporatecustomersarelocatedaswellastheneedtobuilda
strongretailcustomerbaseforbothdepositsandloanproducts.Beingaclearing/settlementbank
tovariousleadingstockexchanges,theBankhasbranchesinthecenterswheretheNSE/BSEhas
astrongandactivememberbase.
TheBankalsohasanetworkofaboutover2526networkedATMsacrossthesecities.Moreover,
HDFCBank'sATMnetworkcanbeaccessedbyalldomesticandinternationalVisa/MasterCard,
VisaElectron/Maestro,Plus/CirrusandAmericanExpressCredit/Chargecardholders.
PROMOTER
HDFCisIndia'spremierhousingfinancecompanyandenjoysanimpeccabletrackrecordin
Indiaaswellasininternationalmarkets.Sinceitsinceptionin1977,theCorporationhas
maintainedaconsistentandhealthygrowthinitsoperationstoremainamarketleaderin
mortgages.Itsoutstandingloanportfoliocoverswelloveramilliondwellingunits.HDFChas
developedsignificantexpertiseinretailmortgageloanstodifferentmarketsegmentsandalso
hasalargecorporateclientbaseforitshousingrelatedcreditfacilities.Withitsexperienceinthe
financialmarkets,astrongmarketreputation,largeshareholderbaseanduniqueconsumer
franchise,HDFCwasideallypositionedtopromoteabankintheIndianenvironment.
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MANAGEMENT
Mr.C.M.VasudevhasbeenappointedastheChairmanoftheBankwitheffectfrom6thJuly
2010subjecttotheapprovaloftheReserveBankofIndiaandtheshareholders.Mr.Vasudevhas
beenaDirectoroftheBanksinceOctober2006.AretiredIASofficer,Mr.Vasudevhashadan
illustriouscareerinthecivilservicesandhasheldseveralkeypositionsinIndiaandoverseas,
includingFinanceSecretary,GovernmentofIndia,ExecutiveDirector,WorldBankand
GovernmentnomineeontheBoardsofmanycompaniesinthefinancialsector.
TheManagingDirector,Mr.AdityaPuri,hasbeenaprofessionalbankerforover25years,and
beforejoiningHDFCBankin1994washeadingCitibank'soperationsinMalaysia.
TheBank'sBoardofDirectorsiscomposedofeminentindividualswithawealthofexperience
inpublicpolicy,administration,industryandcommercialbanking.Seniorexecutives
representingHDFCarealsoontheBoard.
SeniorbankingprofessionalswithsubstantialexperienceinIndiaandabroadheadvarious
businessesand
functions
and
report
to
the
Managing
Director.
Given
the
professional
expertise
ofthemanagementteamandtheoverallfocusonrecruitingandretainingthebesttalentinthe
industry,thebankbelievesthatitspeopleareasignificantcompetitivestrength.
TECHNOLOGY
HDFCBankoperatesinahighlyautomatedenvironmentintermsofinformationtechnologyand
communicationsystems.Allthebank'sbrancheshaveonlineconnectivity,whichenablesthe
banktoofferspeedyfundstransferfacilitiestoitscustomers.Multi-branchaccessisalso
providedtoretailcustomersthroughthebranchnetworkandAutomatedTellerMachines
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(ATMs).
TheBankhasmadesubstantialeffortsandinvestmentsinacquiringthebesttechnologyavailable
internationally, tobuildtheinfrastructureforaworldclassbank.TheBank'sbusinessis
supportedbyscalableandrobustsystemswhichensurethatourclientsalwaysgetthefinest
servicesweoffer.
TheBankhasprioritiseditsengagementintechnologyandtheinternetasoneofitskeygoals
andhasalreadymadesignificantprogressinweb-enablingitscorebusinesses.Ineachofits
businesses,theBankhassucceededinleveragingitsmarketposition,expertiseandtechnologyto
createacompetitiveadvantageandbuildmarketshare.
QUALITY POLICY
SECURITY:Thebankprovideslongtermfinancialsecurityto theirpolicy.Thebank
doesthisbyofferinglifeinsuranceandpensionproducts.
TRUST: Thebank appreciates the trustplacedby theirpolicy holders inthebank.
Hence,itwillaimtomanagetheirinvestmentsverycarefullyandliveuptothistrust.
INNOVATION: Recognizingthedifferent needsofourcustomers, thebankoffersa
rangeofinnovativeproductstomeettheseneeds.
INTEGRITY
CUSTOMERCENTRIC
PEOPLECAREONEFORALLANDALLFORONE
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TEAMWORK
JOYANDSIMPLICITY
BUSINESS
HDFCBankoffersawiderangeofcommercialandtransactionalbankingservicesandtreasury
productstowholesaleandretailcustomers.Thebankhasthreekeybusinesssegments:
WholesaleBankingServices
TheBank'stargetmarketrangesfromlarge,blue-chipmanufacturingcompaniesinthe
Indiancorporatetosmall&mid-sizedcorporatesandagri-basedbusinesses.Forthese
customers,theBankprovidesawiderangeofcommercialandtransactionalbanking
services,includingworkingcapitalfinance,tradeservices,transactionalservices,cash
management,etc.Thebankisalsoaleadingproviderofstructuredsolutions,which
combinecashmanagementserviceswithvendoranddistributorfinanceforfacilitating
superiorsupplychainmanagementforitscorporatecustomers.Basedonitssuperior
productdelivery/servicelevelsandstrongcustomerorientation,theBankhasmade
significantinroadsintothebankingconsortiaofanumberofleadingIndiancorporates
includingmultinationals,companiesfromthedomesticbusinesshousesandprimepublic
sectorcompanies.Itisrecognisedasaleadingproviderofcashmanagementand
transactionalbankingsolutionstocorporatecustomers,mutualfunds,stockexchange
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membersandbanks.
RetailBankingServices
TheobjectiveoftheRetailBankistoprovideitstargetmarketcustomersafullrangeof
financialproductsandbankingservices,givingthecustomeraone-stopwindowforall
his/herbankingrequirements.Theproductsarebackedbyworld-classserviceanddelivered
tocustomersthroughthegrowingbranchnetwork,aswellasthroughalternativedelivery
channelslikeATMs,PhoneBanking,NetBankingandMobileBanking.
TheHDFCBankPreferredprogramforhighnetworthindividuals,theHDFCBankPlus
andtheInvestmentAdvisoryServicesprogramshavebeendesignedkeepinginmindneeds
ofcustomerswhoseekdistinctfinancialsolutions,informationandadviceonvarious
investmentavenues.TheBankalsohasawidearrayofretailloanproductsincludingAuto
Loans,Loansagainstmarketablesecurities,PersonalLoansandLoansforTwo-wheelers.It
isalsoaleadingproviderofDepositoryParticipant(DP)servicesforretailcustomers,
providingcustomersthefacilitytoholdtheirinvestmentsinelectronicform.
HDFCBankwasthefirstbankinIndiatolaunchanInternationalDebitCardinassociation
withVISA(VISAElectron)andissuestheMastercardMaestrodebitcardaswell.TheBank
launcheditscreditcardbusinessinlate2001.ByMarch2010,thebankhadatotalcardbase
(debitandcreditcards)ofover14million.TheBankisalsooneoftheleadingplayersinthe
merchantacquiringbusinesswithover90,000Point-of-sale(POS)terminalsfordebit/
creditcardsacceptanceatmerchantestablishments.TheBankiswellpositionedasaleader
invariousnetbasedB2Copportunitiesincludingawiderangeofinternetbankingservices
forFixedDeposits,Loans,BillPayments,etc.
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Treasury
Withinthisbusiness,thebankhasthreemainproductareas-ForeignExchangeand
Derivatives,LocalCurrencyMoneyMarket&DebtSecurities,andEquities.Withthe
liberalisationofthefinancialmarketsinIndia,corporatesneedmoresophisticatedrisk
managementinformation,adviceandproductstructures.Theseandfinepricingonvarious
treasuryproductsareprovidedthroughthebank'sTreasuryteam.Tocomplywithstatutory
reserverequirements,thebankisrequiredtohold25%ofitsdepositsingovernment
securities.TheTreasurybusinessisresponsibleformanagingthereturnsandmarketriskon
thisinvestmentportfolio.
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SERVICE QUALITY
IN BANKS
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Inthedaysofintensecompetition,thebanksarenodifferentfromanyotherconsumermarketing
company.Ithasbecomeessentialfortheservicefirmsingeneralandbanksinparticularto
identifywhatthecustomer'srequirementsareandhowthosecustomerrequirementscanbemet
effectively.Inthedayswhereproductandpricedifferencesareblurred,superiorservicebythe
serviceprovideristheonlydifferentiatorleftbeforethebankstoattract,retainandpartnerwith
thecustomers.Superiorservicequalityenablesafirmtodifferentiateitselffromitscompetition,
gainasustainablecompetitiveadvantage,andenhanceefficiency.Thebenefitsofservicequality
includeincreasedcustomersatisfaction,improvedcustomerretention,positivewordofmouth,
reducedstaffturnover,decreasedoperatingcosts,enlargedmarketshare,increasedprofitability,
andimprovedfinancialperformance.Theconstructofservicequalityhasthereforebeena
subjectofgreatinteresttoservicemarketingresearchers.
Servicequalityhasbeendefinedbyvariousexpertsinvariouswaysas:'ServiceQualityisthe
differencebetweencustomers'expectationsforserviceperformancepriortotheservice
encounterandtheirperceptionsoftheservicereceived.'AccordingtoGefanServicequalityis
thesubjectivecomparisonthatcustomersmakebetweenthequalitiesofservicethattheywantto
receiveandwhattheyactuallyget.'Parasuramansays,'Servicequalityisdeterminedbythe
differencesbetweencustomer'sexpectationsofservicesprovider'sperformanceandtheir
evaluationoftheservicestheyreceived.
Servicequalityis'thedeliveryofexcellentorsuperiorservicerelativetocustomerexpectations.
Servicequalityisrecognizedasamultidimensionalconstruct.Whilethenumberofdimensions
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oftenvariesfromresearchertoresearcher,thereissomeconsensusthatservicequalityconsists
ofthreeprimaryaspects:outcomequality,interactionquality,andphysicalserviceenvironment
quality.Outcomequalityreferstothecustomer'sassessmentofthecoreservicewhichisthe
primemotivatingfactorforobtainingtheservices(e.g.moneyreceivedfromATM).
Interactionqualityreferstothecustomer'sassessmentoftheservicedeliveryprocess,whichis
typicallyrenderedviaaphysicalinterfacebetweentheserviceprovider,inperson,orvia
technicalequipment,andthecustomer.Itincludes,forinstance,theconsumer'sevaluationofthe
attitudeoftheserviceprovidingstaff.Thephysicalserviceenvironmentqualitydimensionrefers
totheconsumer'sevaluationofanytangibleaspectassociatedwiththefacilitiesorequipment
thattheserviceisprovidedin/with.Itincludes,forexample,thephysicalconditionsofanATM
machine.
Themostpopulardimensionsofservicequality--featuresfivedimensions:tangibles,
reliability,responsiveness,empathy,andassurance.Thetangiblesdimensioncorrespondsto
theaforementionedphysicalenvironmentaspect,thereliabilitydimensioncorrespondstothe
serviceoutcomeaspect,andtheremainingthreerepresentaspectsofinteractionquality.
Boththecostsandtherevenueoffirmsareaffectedbyrepeatpurchases,positiveword-of-mouth
recommendation,andcustomerfeedback.Moreover,thereisstrongevidencethatservicequality
haseitheradirectinfluenceonthebehavioralintentionsofcustomersand/oranindirect
influenceonsuchintentions,mediatedthroughcustomersatisfaction.
http://encyclopedia2.thefreedictionary.com/ATM+machinehttp://encyclopedia2.thefreedictionary.com/ATM+machinehttp://encyclopedia2.thefreedictionary.com/ATM+machinehttp://encyclopedia2.thefreedictionary.com/ATM+machinehttp://encyclopedia2.thefreedictionary.com/ATM+machinehttp://encyclopedia2.thefreedictionary.com/ATM+machinehttp://encyclopedia2.thefreedictionary.com/ATM+machine -
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RATERisaninstrumentthatmightbeusedtodefineandmeasurebankingservicequalityand
tocreateusefulquality-assessmenttools.
TheRATERmayfinallyprovidethefollowingbenefitstotheHDFCbank:
1.Itisthefirstapproachtoaddandmixthecustomersreligiousbeliefsandculturalvalueswith
otherqualitydimensions.
2.Itprovidesformulti-facedanalysisofcustomersatisfaction.
3.Itlinksqualitywithcustomerssatisfactionandserviceencounter.
4.Itprovidesinformationatseverallevels,alreadyorganizedintomeaningfulgroupings.
5.Itisaprovenapproach,whichresultsinusableanswerstomeetcustomersneeds.
6.Itisempiricallygrounded,systematicandwelldocumented.
BanksmanagerscanusetheRATERmodelanditsdimensionsfirsttoidentifythefollowing
issues:
Toidentifythoseareaswhereimprovementshouldbemadeandresourcescanbeallocated.For
instance,theyneedtoknowthelevelofqualityintheirbanksandtheycanmanipulatetomake
bank-wideimprovementinqualityperformance.Alsotheycanusebenchmarkingtocompare
theirperformanceandotherbanks,whichhavealreadyimplementedqualityprogramthatwill
helptoprioritisethequalitymanagementefforts.
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RESPONSIVENES
S
RELIABILITY ASSURANCE
EMPATHY TANGIBILIT
Y
DIMENSIONSOFSERVICEQUALITY
TANGIBILITY:Thisdimensiondealwithmodernlookingequipmentsandvisualappealingpartof
banks.
RELIABILITY:Thisdimensionhasadirectpositiveeffectonperceivedservicequalityand
customersatisfactioninbankinginstitutions.Banksmustprovideerrorfreeserviceandsecure
onlinetransactionstomakecustomersfeelcomfortable.
RESPONSIVENESS:Customersexpectthatthebanksmustrespondtheirinquirypromptly.
Responsivenessdescribeshowoftenabankvoluntarilyprovidesservicesthatareimportanttoits
customers.Researchersexaminingtheresponsivenessofbankingserviceshavehighlightedthe
importanceofperceivedservicequalityandcustomersatisfaction.
ASSURANCE:Customerexpectsthatthebankmustbesecuredandthebehavioroftheemployees
mustbeencouraging.
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EMPATHY:individualattention,customizedserviceandconvenientbankinghoursareverymuch
importantintodaysservice.
Inordertoachievebetterunderstandingofservicequalityinbankingsector,theproposedfive
servicequalitydimensionsareconceptualizedtoillustratetheoverallservicequalityofthe
bankinginrelationtocustomersandprovidersperspective.
Bankingwasinthesectorfeaturingmediumgoodsandhighercustomerproducerinteractions,
sinceinbanking,consumersandserviceprovidersinteractpersonallyandtheuseofgoodsisata
mediumlevel.Hence,inbanking,wheretherearehighcustomer-producerinteractions,the
qualityofserviceisdeterminedtoalargeextentbytheskillsandattitudesofpeopleproducing
theservice.
Inthecaseofservices,becausecustomersareofteneitherdirectobserversoftheproduction
processoractiveparticipants,howtheprocessisperformedalsohasastronginfluenceonthe
overallimpressionofthequalityofservice.Awell-performedserviceencountermayeven
overcomethenegativeimpressioncausedbypoortechnicalqualityaswellasgeneratepositive
word-of-mouth,particularlyifcustomerscanseethatemployeeshaveworkedveryhardto
satisfytheminthefaceofproblemsoutsidetheircontrol.Employeesarepartoftheprocess,
whichconnectswiththecustomeratthepointofsale,andhenceemployeesremainthekeyto
successattheseserviceencountersormomentsoftruth.Itistheseencounterswithcustomers
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duringaservicethatarethemostimportantdeterminantsofoverallcustomersatisfaction,anda
customersexperiencewiththeservicewillbedefinedbythebriefexperiencewiththefirms
personnelandthefirmssystems.Therudenessofthebankscustomerservicerepresentative,
theabruptnessoftheemployeeatthetellercounter,orthelackofinterestofthepersonatthe
checkdepositcountercanalteronesoverallattitudetowardstheservice,perhapsevenreversing
theimpressioncausedbyhightechnicalquality.
Anotherimportantservicequalityfactor,competence,isdefinedbywhetherthebankperforms
theservicerightthefirsttime,whethertheemployeesofthebanktellcustomersexactlywhen
serviceswillbeperformed,whetherthebanklivesuptoitspromises,whethercustomersfeel
safeintheirtransactionswiththebankandwhethertheemployeesshowasincereinterestin
solvingthecustomersproblems.Inshort,thisdimensionisrelatedtothebanksabilityto
performthepromisedserviceaccuratelyanddependably.Performingtheservicedependablyand
accuratelyistheheartofservicemarketingexcellence.Whenacompanyperformsaservice
carelessly,whenitmakesavoidablemistakes,andwhenitfailstodeliveronpromisesmadeto
attractcustomers,itshakescustomersconfidenceinitscapabilitiesandunderminesitschances
ofearningareputationforserviceexcellence.
Itisveryimportanttodotheservicerightthefirsttime.Incaseaserviceproblemdoescropup,
byresolvingtheproblemtothecustomerssatisfaction,thecompanycansignificantlyimprove
customerretention.However,companiesfarebestwhentheypreventserviceproblems
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altogetherandfareworstwhenserviceproblemsoccurandthecompanyeitherignoresthemor
doesnotresolvethemtothecustomerssatisfaction.
Performingtheserviceaccuratelyisperhapsthemostimportantfactorinservicequality
excellence.Thecostofperformingtheserviceinaccuratelyincludesnotonlythecostofredoing
theservicebutalsothecostassociatedwithnegativeword-of-mouthgeneratedbydispleased
customers.Incaseofservices,thefactoryisthefield.Again,servicesareintangibleandhence
thecriteriaforflawlessservicesaremoresubjectivethanthecriteriafordefect-freetangible
goods.Henceformostservices,customersperceptionsofwhethertheservicehasbeen
performedcorrectly,andnotprovider-establishedcriteria,arethemajordeterminantsof
reliability.
Theservicequalityfactortangibleisdefinedbywhetherthephysicalfacilitiesandmaterials
associatedwiththeservicearevisuallyappealingatthebank.Theseareallfactorsthatcustomers
noticebeforeoruponenteringthebank.Suchvisualfactorshelpconsumersformtheirinitial
impressions.Acrucialchallengeinservicemarketingisthatcustomerscannotseeaservicebut
canseethevarioustangiblesassociatedwithit-allthesetangibles,theservicefacilities,
equipmentandcommunicationmaterialsarecluesabouttheintangibleservice.Ifunmanaged,
thesecluescansendtothecustomerswrongmessagesabouttheserviceandrenderineffective
themarketingstrategyofthecompany.Ontheotherhand,improvingqualitythroughtangibles
meansattentiontothesmallestdetailsthatcompetitorsmightconsidertrivial.Yet,thesevisible
detailscanaddupforcustomersandsignalamessageofcaringandcompetence.
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Customersmayrevealnewaspectsofservicequalityinbankingthatareimportanttothem,and
thesewouldhavetobeincorporatedinthescalesoastofurtherexploretheconceptofservice
qualityinthebankingarena.
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RESEARCH OBJECTIVE
AND
RESEARCH METHODOLOGY
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RESEARCH OBJECTIVE
Theobjectiveofthestudyisasfollows:
Toexaminetheessentialdimensionsofservicequalityi.e.RATER-Reliability,
assurance,tangibles,empathyandresponsivenessofHDFCbank anditseffectoncustomers
satisfaction.
Tofindoutthelevelofperceptionofthecustomersfromtheservicequalityofferedby
thebanks.
Toknowwhichservicequalitydimensionofthebankisperformingwell.
Toidentifywhichdimensionofservicequalityneedsimprovementsothatthequalityof
serviceofHDFCbanksisenhanced
IMPORTANCE AND SCOPE OF THE STUDY
Thestudywouldtrytothrowsomeinsightsintotheexistingservicesprovidedbythebanks,
perceptionsandtheactualservicequalityofthebank.Theresultsofthestudywouldbeableto
recognizethelacunaeinthesystemandthusprovidekeyareaswhereimprovementisrequired
forbetterperformanceandsuccessratio.Inthedaysofintensecompetition,superiorserviceis
theonlydifferentiatorleftbeforethebankstoattract,retainandpartnerwiththecustomers.
Superiorservicequalityenablesafirmtodifferentiateitselffromitscompetition,gaina
sustainablecompetitiveadvantage,andenhanceefficiency.
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SCOPE OF STUDY
ThescopeofthisresearchistoidentifytheservicequalityofHDFCbank.Thisresearchisbased
onprimarydata andsecondarydata. Thisstudyonly focusesonthedimensionsofservice
qualityi.e.RATER.Itaimstounderstandtheskillofthecompanyintheareaofservicequality
thatareperformingwellandshowsthoseareaswhichrequireimprovement.Thestudywasdone
taking into 1 branch ofHDFCbankintoconsideration. Thesurveywasrestrictedtothebank
customers at Khnayaronly.
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RESEARCH METHODOLOGY
DATA SOURCE
Primary Data:
Theprimarydatawascollectedbymeansofasurvey.Questionnaireswerepreparedand
customersofthebankat khnayarbranchewereapproachedtofillupthequestionnaires.The
questionnairecontains20questionswhichreflectonthetypeandqualityofservicesprovidedby
thebankstothecustomers.Theresponseofthecustomerandtheisrecordedonagradescaleof
stronglydisagree,disagree,uncertain,agreeandstronglyagreeforeachquestion.Thefilledup
informationwaslateranalyzedtoobtaintherequiredinterpretationandthefindings.
Secondary Data:
Inordertohaveaproperunderstandingoftheservicequalityofbankadepthstudywasdone
fromthevarioussourcessuchasbooks,alotofdataisalsocollectedfromtheofficialwebsites
ofthebanksandthearticlesfromvarioussearchengineslikeGoogle,yahoosearchand
answers.com.
RESEARCH DESIGN
Theresearchdesignisexploratorytillidentificationofservicequalityparameters.Laterit
becomesdescriptivewhenitcomestoevaluatingcustomerperceptionofservicequalityofthe
banks.
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Descriptiveresearch,alsoknownasstatisticalresearch,describesdataandcharacteristics
aboutthepopulationorphenomenonbeingstudied.Descriptiveresearchanswersthequestions
who,what,where,whenandhow.
Althoughthedatadescriptionisfactual,accurateandsystematic,theresearchcannotdescribe
whatcausedasituation.Thus,descriptiveresearchcannotbeusedtocreateacausalrelationship,
whereonevariableaffectsanother.Inotherwords,descriptiveresearchcanbesaidtohavealow
requirementforinternalvalidity.
Thedescriptionisusedforfrequencies,averagesandotherstatisticalcalculations.Oftenthebest
approach,priortowritingdescriptiveresearch,istoconductasurveyinvestigation.Qualitative
researchoftenhastheaimofdescriptionandresearchersmayfollow-upwithexaminationsof
whytheobservationsexistandwhattheimplicationsofthefindingsare.
RESEARCH SAMPLE
SAMPLING PLAN:
Sinceitisnotpossibletostudywholeuniverse,itbecomesnecessarytotakesamplefromthe
universetoknowaboutitscharacteristics.
SamplingUnits:CustomersofHDFCbank
SampleTechnique:RandomSampling.
ResearchInstrument:StructuredQuestionnaire.
ContactMethod:PersonalInterview.
http://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Qualitative_researchhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Internal_validityhttp://en.wikipedia.org/wiki/Causalityhttp://en.wikipedia.org/wiki/Causality -
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SAMPLE SIZE:
TheworkisacaseofHDFCBank,oneofthelargestbankofIndianbankingindustrytogether
representingover25percentofthemarketshareofIndianbankingspace.Thesurveywas
conductedinthecityofSrinagar within the Khnayar branch ofHDFCBank,with50customers
asrespondent.
DATA COLLECTION TOOL
Datawascollectedthroughastructuredquestionnaire.Likertscaletechniqueisused.Theformat
ofatypicalfive-levelLikertitemis:
1. Stronglydisagree
2. Disagree
3. Neitheragreenordisagree
4. Agree
5. Stronglyagree
Likertscalingisabipolarscalingmethod,measuringeitherpositiveornegativeresponsetoa
statement.Thequestionnaireconsistsoftwoparts.Thefirstpartconsistsofthreequestions
concerningthe
demographic
information
of
the
respondent
such
as
the
name,
age,
educational
qualificationsandincome.Thesecondpartconsistingof18questionsexploringtherespondents
perceptionabouttheservicequalityofHDFC.ForevaluationofservicequalityofHDFCbank
http://legal-dictionary.thefreedictionary.com/respondenthttp://legal-dictionary.thefreedictionary.com/respondenthttp://legal-dictionary.thefreedictionary.com/respondenthttp://legal-dictionary.thefreedictionary.com/respondent -
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servicequalitydimensionofreliability,assurance,tangibility,empathyandresponsivenessis
usedinordertoevaluatetheactualservicequalityofHDFCbank.
RESEARCH LIMITATIONS
ThestudyisonlyfortheHDFCBankconfinedtoaparticularlocationandaverysmall
sampleofrespondents.Hencethefindingscannotbetreatedasrepresentativeoftheentire
bankingindustry.
Thestudycanalsonotbegeneralizedforpublicandprivatesectorbanksofthecountry.
Respondentsmaygivebiasedanswersfortherequireddata.Someoftherespondentsdid
notliketorespond.
Respondentstriedtoescapesomestatementsbysimplyansweringneitheragreenor
disagreetomostofthestatements.Thiswasoneofthemostimportantlimitationfaced,asit
wasdifficulttoanalyseandcomeatarightconclusion.
Inourstudywehaveincluded50customersofbankbecauseoftimelimit.
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ANNEXURE
QUESTIONNAIRE
RespectedSir/Madam
Iamstudent of Islamic University of Science And Technology,conductingasurveyon
SERVICEQUALITYOFHDFCBANK.Thefollowingstatementsrelatetoyourfeelings
abouttheHDFCbank.PleaseshowtheextenttowhichyoubelieveHDFCbankhasthefeature
describedinthestatement.Irequestyoutotheoptionwhichinyouropinionarebelievedtobe
true.Alldatawillbekeptconfidential.
Name:
Age:
EducationalQualifications:
StronglyDisagree Disagree Neitheragree Agree StronglyAgreeNordisagree
1. HDFCbankhasmodernlookingequipment.
2. Thebank'sphysicalfeaturesarevisuallyappealing.
3. Thebank'sreceptiondeskemployeesareneat
appearing.
4. Materialsassociatedwiththeservice(suchas
pamphletsorstatements)arevisuallyappealingat
thebank.
5. Whenthebankpromisestodosomethingbyacertain
time, itdoesso.
6. Whenyouhaveaproblem,thebankshowsasincere
interest insolvingit.
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StronglyDisagree Disagree Neitheragree Agree StronglyAgreeNordisagree
7. Thebankperformstheservicerightthefirsttime.
8. Thebankinsistsonerrorfreerecords.
9. Employeesinthebanktellyouexactlywhenthe
serviceswillbeperformed.
10.Employeesinthebankgiveyoupromptservice.
11.Employeesinthebankarealwayswillingtohelp
you.
12.Employeesinthebankarenevertoobusytorespond
toyourrequest.
13.Theemployeesofthebankaretrustworthy.
14.Thebehaviorofemployeesinthebankinstills
confidenceinyou.
15.Youfeelsafeinyourtransactionswiththebank.
16.Employeesinthebankhavetheknowledgetoanswer
yourquestions.
17.Thebankgivesyouindividualattention.
18.Thebankhasoperatinghoursconvenienttoallits
customers.
19.Thebankhasyourbestinterestsatheart.
20.Theemployeesofthebankunderstandyour
specificneeds.