Customers Preference N Satisfaction Banking Services

Topics: Bank, Cheque, Banking Pages: 19 (6069 words) Published: June 16, 2012
A Study on Customers Preference and Satisfaction of Four Basic Banking Services in Coimbatore and Erode T Vetrivel* and T Devasenathipathi**
The purpose of this study is to investigate the differing preference and satisfaction level of customers towards Loans, Deposit schemes, Insurance and Value-added services rendered by various banks in Coimbatore and Erode cities. By using non-probability convenient sampling, 300 samples were taken at various branches and ATM centers, etc. Simple percentage and chi-square test results revealed that Business and Vehicle Loans are fast moving and customers had overall satisfaction. Bank loans, bank deposit schemes showed a positive response and in value-added services, customer preference for Net banking got the least rank. Among four basic services, Insurance services have been paid limited attention and the study recommends special attention on banking insuranceservice satisfaction and the implications were recorded for future researchers.

After Liberalization, Privatization and Globalization (LPG) policy enactment, Indian banking industry has undergone tremendous qualitative changes. To face macro changes, many of the banks have framed strategies to survive by concentrating on rapidly changing markets, new technology, solving trade union issues, foreign banks entry, bank regulations, economic meltdown, fierce competition and have also understood the realities of long-term survival which depends on the

satisfaction of customers’ expectations. Still many of the banks are facing challenges to understand the mindset of their clients due to often changing preferences and expectations of the customers. The banks also rarely evaluate customer expectations. But well-known MNC companies continuously evaluate the consumers’ mindset with the help of Marketing consultants, educational institutions and then concentrate on fulfilling their requirements. As V Krishnamurthy (Staff reporter, The Hindu) of Banking

About the Authors

Professor, Department of Management Studies, Velalar College of Engineering & Technology, Thindal, Erode 638012, Tamil Nadu, India. E-mail: Senior Lecturer, Department of Management Studies, PPG Business School, Saravanampatti, Coimbatore, Tamil Nadu, India. E-mail: 81


A Study IUP. All Rights Preference and Satisfaction © 2010 on Customers Reserved. of Four Basic Banking Services in Coimbatore and Erode

Ombudsman for Kerala and Lakshadweep Islands, said Indian banking industries’ biggest challenge is not from its trade unions and foreign banks, but meetin the rising hopes of the customers. Nowadays most of the winning companies are focusing on continuously fulfilling their clientele expectations or beyond, like customer delight. The most popular view of customer satisfaction by academia is that customer satisfaction is the judgment borne out of the comparison of prepurchase expectations with post-purchase evaluation of the product or service experience (Oliver, 1997). Customer satisfaction is a post-purchase judgment or evaluation done by customers by comparing their pre-purchase expectations. If it results in positive values, then one can assume that customers get satisfied and then it is easy for bankers to retain or delight them for longer periods, consequently bringing in profitability.

Objectives of the Study
• To know the over-all satisfaction and dissatisfaction levels of bank customers with respect to fourdimensional banking services—Loan services, deposit scheme services, insurance services and value-added services. • To know the customers opinions and preferences about various supporting factors of fourdimensional banking services.

Research Methodology
In this study, descriptive research technique was adopted. Main objective of the survey is to know the consumers’ satisfaction and dissatisfaction level about banking services with respect to loans, deposits schemes,...
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