RESEARCH STUDY 1.

1 Scope of the study:

The study would try to throw some insights into the existing services provided by the banks and the gap between the customer expectations, perceptions and the actual state of performance. The results of the study would be able to recognize the lacuna in the system and thus provide key areas where improvement is required for better performance and success ratio.

1.2 Research Objectives:

(1) To find out the level of expectation and the level of perception of the customers from the services offered by the banks. (2) To compare the level of perception and expectation of the services offered by the banks. (3) To know which service quality dimension the bank is performing well and in which dimension it needs improvement. (4) To know the preference towards the public sector and private sector banks.

1.3 Sampling Design:  Targeted banks: ICICI,HDFC,SBI,BOB

 Sampling Frame: All the construction companies which are the customers of four banks in Ahmedabad.  Sampling Unit: Any construction company which is the customer of four banks in Ahmedabad.  Sampling Area: Ahmedabad.  Sampling Method: Non- Probability Convenience Sampling.

 Sample Size: 20 Respondents

1.4 Data Sources:

 Primary Data: It is collected through structured questionnaire by conducting survey.  Secondary Data: Internet, journals, books, magazines, etc.....

1.5 Research Design:

Our research is Descriptive in nature as the banking industry is well-developed in India and lot of research has already been done in this area.

1.6 Research tool :

y SERVQUAL Analysis.

SERVQUAL is an instrument for measuring how customers perceive the quality of a service. In the mid-1980s Berry and his colleagues Parasuraman and Zeithaml began to investigate what determines service quality and how it is evaluated by customers. As a result of their study they developed the SERVQUAL instrument for measuring service quality, which initially included 10 service quality dimensions, which were later reduced to the following five: tangibles, reliability, responsiveness, assurance and empathy. The instrument is based on the idea of the disconfirmation model, in other words on the comparison of customers expectations with their experiences from the service. Usually, the five dimensions of the instrument are described through the use of 22 attributes, the respondents are asked to state (on a seven-point scale from Strongly disagree to Strongly agree) what they expected from the service and how they perceived the service.

Chi-Square test of independence

The test is applied when there are two categorical variables from a single population. It is used to determine whether there is a significant association between the two variables. For example, in an election survey, voters might be classified by gender (male or female) and voting preference (Democrat, Republican, or Independent). We could use a chi-square test for independence to determine whether gender is related to voting preference. This approach consists of four steps: (1) state the hypotheses, (2) formulate an analysis plan, (3) analyze sample data, and (4) interpret results.

1.7 Hypothesis:
A chi- square test for independence has been conducted for knowing the relation between the total no. of years the company been engaged in construction business and the preference towards the two types of banks.  Ho: Preference towards public/private sector banks and the total no. of years the company been engaged in construction business are independent of each other.  H1: Preference towards public/private sector banks and the total no. of years the company been engaged in construction business is dependent on each other.

1.8 Limitations of the Study:

 Respondents may give biased answers for the required data. Some of the respondents did not like to respond.

ANALYSIS OF GENERAL QUESTIONS

1. Which type of service do you prefer the most from the banks? a. Cash credit b. Equipment loan services c. other loan services d. Any other service

2. Your Account Decisions are influenced by: a. Oneself b. Market research c. broker d. friends/relatives

nfluence Of Account Decisions roker riends/ elatives

Oneself

Market esearch %

2%

76%

3) Which factors do you consider before opening account or in purchasing new plan in a particular bank? A. Financial position B. Current Market Position C. Goodwill D. Future prospects E.Services provided
Factors considered before opening an Account

5) Which bank is more secure according to you? a ICICI b HDFC c SBI d BOB

M ost Secure Bank ICICI HDFC SBI BOB



33

 

Financial position Current Market Position Goodwill Future prospects Services provided

ANALYSIS OF CHI SQUARE TEST OF INDEPENDENCE

Chi square test of independence

Hypothesis
Ho: Preference towards public/private sector banks and the total no. of years the company been engaged in construction business are independent of each other. H1: Preference towards public/private sector banks and the total no. of years the company been engaged in construction business is dependent on each other.

Where, Fo= observed frequency Fe= expected frequency for each cell Fe= (frequency for the column)(frequency for the row)/n

Calculation

observed frequency Age group Preference towards banks Public sector banks Private sector banks Total of column 18-25 13 22 35 26-35 21 1 37 36-45 31 23 54 46-55 3 19 55 55 and above 1 3 19 Total of raw 117 83 200

Expected frequency Age group Preference towards banks Public sector banks Private sector banks 18-25 20.4 5 14.525 26-35 21. 45 15.355 36-45 31.59 22.41 46-55 32.1 5 22.825 55 and above 11.115 .885

Fo 13 21 31 3 1 22 1 23 19 3

Fe 20.48 21. 4 31.59 32.18 11.12 14.53 15.3 22.41 22.83 .89

Fo-Fe - .48 -0. 4 -0.59 3.82 4.88 .4 0. 4 0.59 -3.83 -4.89

(Fo-Fe)^2 55.95 0.41 0.35 14.59 23.81 55.80 0.41 0.35 14. 23.91

[(Fo-Fe)^2]/Fe 2. 3 0.02 0.01 0.45 2.14 3.84 0.03 0.02 0. 4 3.03 2 Cal = 12.91

Degree of freedom=(R-1)*(C-1) = (2-1)*(5-1) =4 Confidence level = 95 Therefore 2tab = 9.49 Now in this case accepted.
2

cal >

tab hence null hypothesis is rejected and alternative hypothesis is

Conclusion: Preference towards public/private sector banks and age group are dependent on each other.

Strenth of contingency co efficient:

Cramours value =[ /Min (r-1) or (c-1)]^ Now = [ 2 / n ] = 0.25

Hence

Cramours value = [ /Min (r-1) or (c-1)] ^ = 0.5 Upper limit = [(r-1)/r] ^ = 0. 0 Now Out of 0. 0, strength = 0.5 Therefore strength = 0.5/0. 0 = 71.42 %

SERVQUAL ANALYSIS
Calculation of servqual scores for ICICI bank Statement Expectation Perception Gap Score Score Score

Dimension

Average for Dimension

Reliability

Tangibility

1 2 3 4 5

.8 5.8 4.8 5.2 .5 5. 5.8 5. 5.4 5 5.2 4.8 4.3 3.5 4.5 5. 4. 5. .5 5. 5.5 . 5. 5 . .2

8 9 10 11 12 Responsiveness 13 14 15 1 1 18 19 20 21 22 23 24 25 2 2 28

4.4 5.2 4 3. 5.8 5.4 5.4 5. 5. 5.5 5 3.8 3.8 3.2 2.9 1.9 3.25 2. 2.2 3. 5.9 4.3 4.5 .3 5. 4.9 5.9 5.1

2.4 0. 0.8 1. 0. 0. 0.2 0.2 0.3 0.1 0.4 1.2 1.4 1. 1.4 1. 1.25 2.9 2.5 2 0. 1.4 1 0.4 0.08 1.1 0. 1.1

1.35

0.4

1.45

Assurance

1. 4

Empathy

0. 8

Unweighted Average SERVQUAL score:

1.13

Reliability Tangibility Responsiveness Assurance

1.35 0.46 1.45 1.74

Empathy

0.68

ICICI bank
2 1.8 1.6 1.45 1.35 1.74

Average gap score

1.4 1.2 1 0.8 0.6 0.4 0.2 0

Series1

0.68 0.46

Reliability

Tangibility

Responsiveness

Assurance

Empathy

Dimension

Gap score Minimum Maximum

Dimension Tangibility Assurance

Weightage given by respondents to different dimension 1.The bank's ability to perform the promised service dependably and accurately.

Points 19.

2. The appearance of the banks physical facilities, equipment, personnel and communication materials. 3. The banks willingness to help customers and provide prompt service. 4. The knowledge and courtesy of the bank's employees and their ability to convey trust and confidence. 5. The caring individual attention the bank provides its customers.

29.5

11.2 1 .9

21. 100

Total:

SERVQUAL Dimension Reliability Tangibility Responsiveness Assurance Empathy

Score from Table 1 1.35 0.4 1.45 1. 4 0. 8

7- Score from table 1 5. 5 .54 5.55 5.2 .32

Weighting Weighted from Score Table 2 19. 29.5 11.2 1 .9 21. 1.11 1.93 0. 2 0.94 1.3 1.19

Average weighted score

SERVQUAL Dimension

Weighted Score

Reliability Tangibility Responsiveness

1.11 1.93 0. 2

Assurance Empathy

0.94 1.3

ICICI
2.50 2.00 1.50 1.11 1.00 0.62 0.50 0.00 0.94 1.93 1.37
Series1

weighted score

ss

en e

Re sp on si

As su ra

Re l

Dimension

Weighted score Maximum Minimum

Dimension Tangibility Responsiveness

Calculation of servqual scores for HDFC bank Dimension Statement Expectation Score Perception Score .8 .4 5. 5.5 Gap Score Average for Dimension

Reliability

1 2 3 4

pa th y

nc e

i li

il i

. 5.9

0.2 0.2 0.2 0.5

0.28

Tangibility

.4 5.5 .1 .5 4. 5.2 5.1 5. . .3 5.35 5. .3 5.5 . .8 5.3 .5 .5 5 . .4

Responsiveness

Assurance

Empathy

8 9 10 11 12 13 14 15 1 1 18 19 20 21 22 23 24 25 2 2 28

5.8 5.9 5.3 5. .3 3.8 4.9 4. 4.2 5.1 5.3 4. 5 5.25 5.9 4.5 5.8 .1 3.9 4.9 .2 4. 4.3 .2 5.8

0. 0.1 0.2 0.4 0.2 0.9 0.3 0.5 1.5 1.5 1 0. 0.45 0.4 1 0.8 0. 1.4 1.1 0.3 1.8 0. 0.5 0.

0.4

1.03

0.9

0. 8

Unweighted Average SERVQUAL score:

0.

Reliability Tangibility Responsiveness Assurance Empathy

0.28 0.4 1.03 0.9 0.78

HDFC bank
1.2

Average gap score

1.03 0.9 0.78

Series1

1 0.8 0.6 0.4 0.4 0.2 0 0.28

ss

ty

ia bi li

en e

Re sp on si

As su ra

Ta ng i

Re l

Dimension

. Gap score Minimum Maximum Dimension Reliability Responsiveness

Weightage given by respondents to different dimension 1.The bank's ability to perform the promised service dependably and accurately. 2. The appearance of the banks physical facilities, equipment, personnel and communication materials. 3. The banks willingness to help customers and provide prompt service.

pa th y

bi lit

nc e

Points 22.3 30 15.5

4. The knowledge and courtesy of the bank's employees and their ability to convey trust and confidence. 5. The caring individual attention the bank provides its customers. Total:

14.4

1 .8 100

SERVQUAL Dimension

Score from Table 1

7- Score from table 1

Weighting from Table 2

Weighted Score

Reliability Tangibility Responsiveness Assurance Empathy

0.28 0.4 1.03 0.9 0. 8

. 2 . 5.9 .1 .22

22.3 30 15.5 14.4 1 .8

1.50 1.98 0.93 0.88 1.11 1.28

Average weighted score

SERVQUAL Dimension

Weighted Score

Reliability Tangibility Responsiveness Assurance Empathy

1.50 1.98 0.93 0.88 1.11

HDFC
2.50 1.98 2.00 1.50 1.50 1.11 1.00 0.50 0.00 0.93 0.88
Series1

Weighted score

ss

ty

ia bi li

en e

As su ra

Ta ng i

Weighted score Maximum Minimum

Re sp on siv

Re l

Dimension

Dimension Tangibility Assurance

Calculation of servqual scores for SBI bank Dimension Statement Expectation Score 5.3 .3 5.8 .3 5. 5.5 .3 Perception Score 5 5.4 3.9 4.9 3.9 4.2 5.8 5.9 Gap Score 0.3 0.9 1.9 1.4 1.8 1.3 0.2 0.4 Average for Dimension

Reliability

Tangibility

1 2 3 4 5

Em

pa th y

bi l it

nc e

1.13

0.85

Responsiveness

Assurance

Empathy

9 10 11 12 13 14 15 1 1 18 19 20 21 22 23 24 25 2 2 28

.8 5 5 . 5. 5 5.5 .2 5.5 . 3.8 5.3 5 5. 5.9 5 5.3

.4 3. 4 .3 5.4 3. 3 4.3 5.3 .4 3 4.8 3.8 5.5 3.2 5.3 2.9 4. 5.

0.4 1.3 1 0.4 0. 2 2 1.2 0.2 0.2 0.2 0.8 0.5 1.2 0.2 2. 0. 2.1 0. 0.4

1.2

0.52

1.32 1.004

Unweighted Average SERVQUAL score:

Reliability Tangibility Responsiveness Assurance Empathy

1.13 0.85 1.2 0.52 1.32

SBI b n
1. 1.2 o
" #

1.13 0.

1


g g p

0. 0. 0.

0.2 0

i li t

ilit

ss

n ion

Gap score Minimum Maximum

Weightage given by respondents to different dimension 1.The bank's ability to perform the promised service dependably and accurately. 2. The appearance of the banks physical facilities, equipment, personnel and communication materials. 3. The banks willingness to help customers and provide prompt service.

As s

Dimension Assurance Empathy

Em

li

si

4. The knowledge and courtesy of the bank's employees and their ability to convey trust and confidence.



0.

S ri s1

Points 20.9

' '

  



1.32 1.

& % $ " $ # " !

15

.8

45

5. The caring individual attention the bank provides its customers.

12.3

Total:

100

SERVQUAL Dimension

Score from Table 1

7-Score from table 1

Weighting from Table 2

Weighted Score

Reliability Tangibility Responsiveness Assurance Empathy

1.13 0.85 1.2 0.52 1.32

5.8 .15 5.8 .48 5. 8

20.9 15 .8 45 12.3

1.23 0.92 0.39 2.92 0. 0 1.23

Average weighted score

SERVQUAL Dimension

Weighted Score

Reliability Tangibility Responsiveness Assurance Empathy

1.23 0.92 0.39 2.92 0. 0

SBI
3.50 3.00 2.92

Weighted score

2.50 2.00
Series1

1.50 1.00 0.50 0.00

1.23 0.92 0.70 0.39

ia bi lity

ss

en e

Re sp on si

As su ra

Ta ng i

Re l

Dimension

Weighted score Maximum Minimum

Dimension Assurance Responsiveness

Dimension

Calculation of servqual scores for BOB bank Statement Expectation Perception Gap Score Score Score 1 2 3 4 5 . 5. 5.8 4. . 5. 8 5 .3 .3 5.5 4.8 3. 5 . 5.4 4. 2 .01 0.3 0.2 1 1.05 0.1 0.38 0.28 0.29

pa th y

bi lit

nc e

Average for Dimension

Reliability

0. 4

Tangibility

0.42

Responsiveness

Assurance

Empathy

9 10 11 12 13 14 15 1 1 18 19 20 21 22 23 24 25 2 2 28

5.9 5.43 .3 5.9 .3 . 5.9 5. 5.3 . .1 .3 5.8 .8 . 4 5.2 .3

4. 5 4.9 5.88 5. 5.25 .13 3.82 4. 4.9 .35 . 5 5. 4. . .3 . 5 2.8 3.9

1.15 0.53 0.42 0.2 1.05 0.4 2.15 1 0.4 0.25 0.3 1.1 0. 1.2 0.2 0.3 0.25 1.2 1.3 0.3

1.01

0. 1

0. 0.

Unweighted Average SERVQUAL score:

Reliability Tangibility Responsiveness Assurance Empathy

0.64 0.42 1.01 0.61 0.67

BOB
1.2 1.01

o
0. 0. 0.

1 0. 1 0. 2
( ) 0(

g g p

0.

0.

0.2

ss

en e

nc e

i li t

ilit

Re l

Re s

Di

n ion

. Gap score Minimum Maximum Dimension Tangibility Responsiveness

Weightage given by respondents to different dimension 1.The bank's ability to perform the promised service dependably and accurately. 2. The appearance of the banks physical facilities, equipment, personnel and communication materials. 3. The banks willingness to help customers and provide prompt service.

As s

Em

si

( )

1 (

Series1

Points 20 25 1 .8

4. The knowledge and courtesy of the bank's employees and their ability to convey trust and confidence. 5. The caring individual attention the bank provides its customers. Total:

30 8.2 100

SERVQUAL Dimension

Score from Table 1

7-Score from table 1

Weighting from Table 2

Weighted Score

Reliability Tangibility Responsiveness Assurance Empathy

0. 4 0.42 1.01 0. 1 0.

.3 .58 5.99 .39 .33

20 25 1 .8 30 8.2

1.2 1. 5 1.01 1.92 0.52 1.2

Average weighted score

SERVQUAL Dimension Reliability Tangibility Responsiveness Assurance Empathy

Weighted Score 1.2 1. 5 1.01 1.92 0.52

BOB
2.50 2.00 1.65 1.50 1.00 0.52 0.50 0.00 1.27 1.01
Series1

1.92

Weighted score

ia bi lity

ss

en e

Re sp on si

As su ra

Ta ng i

Re l

Dimension

Weighted score Maximum Minimum

Dimension Assurance Empathy

Reliability
BANK ICICI HDFC SBI BOB GAP SCORE 1.35 0.28 1.13 0. 4
2

pa th y

bi lit

nc e

Reli
6

ili y

1. 1.

1.2

1 0.8 0.
6

0. 0.

0.28

0.2 0 ICICI HDFC SBI BOB

Reliability

Gap score
Minimum Maximum

Bank
HDFC ICICI

Tangibility
BANK ICICI HDFC SBI BOB GAP SCORE 0.4
3

0.4 0.85 0.42

6 7

54

1.

7 7

1.13

Series1

Tangi ili y
B

0.

0.85

0.8
A

0.

Avg gap

0. 0. 0.
8

0. 2

0.2 0.1 0 ICICI HDFC SBI BOB

Bank

Tangibility

Gap score
Minimum Maximum

Bank
HDFC SBI

Responsiveness
BANK ICICI HDFC SBI BOB GAP SCORE 1.4 1.03 1.2 1.01

0.5

0.

0.

Series1

Responsiveness
D

1. 1.

1.
C

1.2

Avg gap score

1 0.8
D

0. 0.

0.2 0 ICICI HDFC SBI BOB

1.2 1.03 1.01

Series1

Bank

Responsiveness

Gap score
Minimum Maximum

Bank
BOB ICICI

Assurance BANK ICICI HDFC SBI BOB GAP SCORE 1. 4 0.9 0.52 0. 1

Assurance
2 1.8
P G H

1.

1.

Avg gap score

1.

1.2
I

0.8 0. 1 0.
P

0.

0.52

0.2 0 ICICI HDFC SBI BOB

Bank

Reliability

Gap score
Minimum Maximum

Bank
SBI ICICI

Empathy
BANK ICICI HDFC SBI BOB GAP SCORE 0. 8 0. 8 1.32 0.
FE F E

0.

Series1

Empathy
S

1.

1.2 1 Avg gap score 0. 8 0.8 0. 0.

RQ R

0.2 0 ICICI HDFC Bank SBI BOB

Dimension Reliability Tangibility Responsiveness Assurance Empathy

1. 2

0. 8

0.

Series1

Reliability

Gap score
Minimum Maximum

Bank
BOB SBI

Comparision of gap score Bank ICICI 1.35 0.4 1.45 1. 4 0. 8 HDFC 0.28 0.4 1.03 0.9 0. 8 SBI 1.13 0.85 1.2 0.52 1.32 BOB 0. 4 0.42 1.01 0. 1 0.67

comparision of gap score

2 1.8 1.6 1.4 Avg gap score 1.2 1 0.8 0.6 0.4 0.2 0 Reliability Tangibility Responsiveness Dimension Assurance Empathy ICICI HDFC SBI BOB

Bank ICICI HDFC SBI BOB

Unweighted average Gap score 1.14 0. 8 1 0.67

1.2

1.14 1

1 unweighted avg servqual score

0.8 0.68 0.6 0.67

Series1

0.4

0.2

0 ICICI HDFC Bank SBI BOB

BOB is having minimum unweighted average servqual score amongst all the four banks. Reliability Bank ICICI HDFC SBI BOB weighted score 1.11 1.5 1.23 1.2

Reliability
1.6 1.4 1.23 1.2 1.11 1.5 1.27

Weighted score

1 0.8 0.6 0.4 0.2 0 ICICI HDFC SBI BOB

Series1

Bank

Reliability Weighted score Maximum Minimum

Bank HDFC ICICI

Tangibility

Bank ICICI HDFC SBI BOB

weighted score 1.93 1.98 0.92 1. 5

Tangi ility
2.5

2 Weighted score

1.5
Series1
U

0. 2

0.5

0 ICICI HDFC Bank SBI BOB

Tangibility Weighted score Maximum Minimum

Bank HDFC SBI

Responsiveness

Bank ICICI HDFC SBI

BOB

weighted score 0. 2 0.93 0.39

VU

1.

1. 8 1. 5

Responsiveness
1.2 1.01
`Y

0.

Weighted score

0.8 0. 2
X X

0.

Series1
Y`

0.

0.

0.2

0 ICICI HDFC SBI BOB

Bank

Responsiveness Weighted score Maximum Minimum

Bank BOB SBI

Assurance

Bank ICICI HDFC SBI BOB

weighted score 0.94 0.88 2.92 1.92

Assurance
3.5 3 2.5 2 1.5 0. 1 0.5 0 ICICI HDFC SBI BOB
b c

2. 2
b

weighted score

1. 2
b

Series1

0.88

Bank

Assurance Weighted score Maximum Minimum

Bank SBI HDFC

Empathy

Bank ICICI HDFC SBI BOB

weighted score 1.3 1.11 0. 0.52

Empathy
g

1. 1.

1.2

Weighted score

1 0.8
g

0. 0.

0.2 0 ICICI HDFC SBI BOB

Bank

Empathy Weighted score Maximum Minimum

Comparision of weighted score Dimension Reliability Tangibility Responsiveness Assurance Empathy ICICI 1.11 1.93 0. 2 0.94 1.37 Bank HDFC 1.50 1.98 0.93 0.88 1.11 SBI 1.23 0.92 0.39 2.92 0. 0 BOB 1.27 1. 5 1.01 1.92 0.52

ed

1.

f f

1.11

0.

Series1

0.52

Bank ICICI BOB

3.50

3.00

2.50

weighted score

2.00

1.50

1.00

0.50

0.00 Reliability Tangibility Responsiveness

q

imension

Bank ICICI HDFC SBI BOB

Avg weighted score 1.19 1.28 1.23 1.2

co

h i

arision o weighted score

Bank ICICI Bank HDFC Bank SBI Bank BOB

Assurance

Empathy

vg weighted score

ank

HDFC is having highest average weighted score amongst all the four banks.