Customer Satisfaction

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Comparative Study of customer satisfaction in public sector and private sectors banks

Table of Contents

Acknowledgment…………………………………………………1 Executive Summary……………………………….……………...3 Introduction…………………………………………………….....4 Literature Review…………………………………………………6 Banking Industry: An Overview………………………………....12 Objective of Study……………………………………………….12 Research Methodology…………………………………………..13 Data Analysis……………………………………………………14 Findings…………………………………………………….…...16 Recommendations……………………………………………….17 Limitations of Study……………………………………………..18 Bibliography……………………………………………………..18 Questionnaire……………………………………………………19

“COMPARATIVE STUDY OF CUSTOMER SATISFACTION INPUBLIC SECTOR AND PRIVATE SECTOR BANKS” EXECUTIVE SUMMARY
The working of the customer's mind is a mystery which is difficult to solve andunderstanding the nuances of what customer satisfaction is, a challenging task. This exercise in the context of the banking industry will give us an insight into the parameters of customer satisfaction and their measurement. In the organized segment, banking system occupies an important place in nation’s economy. It plays a pivotal role in the economic development of a country and forms the core of the money market in an advanced country. The commercial banks in India comprise of both Public sector as well as private sector banks. There are total 28 Public sector and 27 private sector banks are functioning in the country presently. Banks have to deal with many customers everyday and render various types of services to its customer. It's a well known fact that no business can exist without customers.

Not so long ago, accessing our own money was about setting aside a couple of hours, getting to the bank before closing time, standing in one queue to get a token and then in another to collect the cash. Those were the pre-economic reforms days, when the banking sector primarily consisted of public sector banks.

The banking industry like many other financial service industries is facing a rapidly changing market, new technologies, economic uncertainties, fierce competition and more demanding customers and the changing climate has presented an unprecedented set of challenges . Banking is a customer oriented services industry, therefore, the customer is the focus and customer service is the differentiating factors .

The banking industry in India has undergone sea change since post independence. More recently, liberalization, the opening up of the economy in the 90s and the government 'decision to privatize banks by reduction in state ownership culminated in the banking reforms based on the recommendations of Narasimha Committee. The prime mover for banks today is profit, with clear indications from the government to 'perform or perish'. Banks have also started realizing that business depends on client service and the satisfaction of the customer and this is compelling them to improve customer service and build up relationship with customers.

The main driver of this change is changing customer needs and expectations. Customersin urban India no longer want to wait in long queues and spend hours in bankingtransactions. This change in customer attitude has gone hand in hand with thedevelopment of ATMs, phone and net banking along with availability of service right atthe customer's doorstep. With the emergence of universal banking, banks aim to provideall banking product and service offering under one roof and their endeavor is to becustomer centric. With the emergence of economic reforms in world in general and inIndia in particular, private banks have come up in a big way with prime emphasis ontechnical and customer focused issues.

The purpose of this paper is to compare the public sector banks and private sector banksin terms of customer satisfaction and to find out the various reasons of customer dissatisfaction in these banks. The data was collected by getting the questionnaire filled by the respondents who were...
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