Consumer Perception on Public vs Private Bank

Topics: Bank, Online banking, Banking in India Pages: 26 (7439 words) Published: December 1, 2010
Consumer perception on Public Bank versus Private Bank
A survey Report
Prakhar Agarwal (09FN-077)
Ravi Jain (09FN-090)
Sachin Gogia (09FN-094)
Sandeep Agarwal (09FN-099)
Saurabh Kumar (09FN-101)
Sunay Jain (09FN-110)


Particulars Page No

Executive Summary
Data Analysis & Findings

Executive Summary
Regulatory, structural and technological factors are significantly changing the banking environment throughout the world. One factor that is spurring the growth of the service economy in India is the liberalisation that has been ushered in by the government in the banking sector.

The financial sector reform in India was designed to infuse “greater competitive vitality in the system”. In other words, financial liberalisation has led to intense competitive pressures and retail banks are consequently directing their strategies towards increasing customer satisfaction and loyalty through improved service quality. Retail banks are pursuing this strategy, in part, because of the difficulty in differentiating based on the service offering. Typically, customers perceive very little difference in the banking products offered by retail banks as any new offering is quickly matched by competitors.

This research endeavours to fill the gap in the service quality by exploring the dimensions of customer perceived service quality in the context of the Indian retail banking industry. A set of service quality parameters, drawn from customers’ perceptions about service quality as well as the bank marketing and service quality literature using the RATER model have been drawn up. Finally, the research has drawn upon the findings of the service quality dimensions to contend the initiatives that banks’ managers can take to enhance employees’ skills and attitudes and instil a customer-service culture.

This research will thus help bankers to know the ways in which how to improve customer perception towards the services provided by them.


Perception is a process by which an individual select, organize & interpret stimuli in a meaningful picture of the world Also, we can describe as “how we see the world around us”. Perception is one of the objects studied by the science of consumer behaviour. Analyzing the works of scientists studying consumer behaviour, it is possible to make a conclusion that perception is presented as one of personal factors, determining consumer behaviour. Personal factors mean the closest environment of a human, including everything what is inside the person, his head and soul, characterizing him as a personality. Customer Perception:

Customer perception is an important component of our relationship with our customers. Customer satisfaction is a mental state which results from the customer’s comparison of expectations prior to a purchase with performance perceptions after a purchase. A customer may make such comparisons for each part of an offer called ‘‘domain-specific satisfaction’’ or for the offer in total called ‘‘global satisfaction’’. Moreover, this mental state, which we view as a cognitive judgment, is conceived of as falling somewhere on a bipolar continuum bounded at the lower end by a low level of satisfaction where expectations exceed performance perceptions and at the higher end by a high level of satisfaction where performance perceptions exceed expectations. Customer Perception on Service

These characteristics of service also make service unique and different from goods as described below a. Intangibility.
b. Heterogeneity.
c. Inseparability.
d. Perishability.
e. Non-returnable.
f. Needs-match uncertainty.
g. Interpersonal.
h. Personal.
i. Psychic.

Like other industries, banking and financial services companies have reached the conclusion that...
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