Professional Documents
Culture Documents
Contents 1. 2. 3. 4. 5. 6. 7. 8. 9. Executive Summary About HDFC Product Profile Background of the Problem Objectives Methodology Findings Suggestions Conclusion
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THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC EXECUTIVE SUMMARY
The growth of the banking industry is imperative for the economic development of the country. Banks have become customer centric and customer relationship management has become a key component of the service provided by the banking sector. The HDFC Corporation Limited was amongst the first to receive an in-principle approval from the Reserve Bank of India. HDFC Bank started electronic data capture (EDC) Service in Bangalore on January 2002. The Study was done in and around Bangalore City with a sample size of 200 merchants. It was done to find out the perception of customers about EDC terminals and to design promotion strategies for HDFCs EDC Terminal. The research has made to analyze the efficiency of the present system and to find out the brand equity of banks providing EDC service. The data collected through the questionnaires and telephone interviews were tabulated and analyze meaningfully. Finally, recommendations have been given in order to promote sales of EDC machine in Bangalore market.
INTRODUCTION
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an in-principle approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBIs liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 Babasabpatilfreepptmba.com Page 2
Distribution Network HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 289 branches spread over 151 cities across the country. All branches are linked on an online real-time basis. Customers in 80 locations are also serviced through Phone Banking. The Banks expansion plans take into account the need to have a presence in all major industrial and commercial centres where its corporate customers are located as well as the need to build a strong retail Babasabpatilfreepptmba.com Page 4
The Board consists of eminent persons with considerable professional expertise and experience in banking, finance and other related fields as specified in the Banking Regulation Act, 1949. As required by the said Act, the Board also has two directors viz. Dr. (Mrs.) Amla Samanta and Dr. Venkat Rao Gadwal with specialized knowledge and experience in the small scale industry and agricultural sector respectively. Two directors, Mrs. Renu Karnad and Mr. Keli Mistry represent the HDFC Group (the promoters) on the Board of the Bank. Mr. Anil Ahuja has been nominated on the Board by the Strategic investors viz, The India Private Equity Fund (Mauritius) and Indocean Financial Holding Ltd. Since the shareholding of the strategic investors has been reduced to less than 7% of the share capital of the Bank, Mr. Ahuja no more represents the strategic investors and now he is on the Board in his individual capacity. Mr. Vineet Jain represents the Bennett and Coleman Group. All directors other than Mr. Aditya Puri, Managing Director are nonexecutive directors on the Board. All directors other than Mr. Aditya Puri, Mr. Keki Mistry and Mrs. Renu Karnad are Independent Directors on the Board. The Bank has not entered into any materially significant transactions, which could have a potential conflict of interest with the Bank, with its promoters, directors, management or relatives etc. other than the transactions entered into in the normal course of banking business.
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a)
Wholesale Banking Services The Banks target market is primarily large, blue-chip
manufacturing companies in the Indian corporate sector and to a lesser extent, emerging mid-sized corporate. For these corporate, the Bank provides a wide range of commercial and transactional banking services, Babasabpatilfreepptmba.com Page 7
HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Master Card Maestro debit card as well. The debit card allows the user to directly debit his account at the point of purchase at a merchant establishment, in India and overseas. The Bank launched its credit card in association with VISA in November 2001. The Bank is also one of the leading players in the merchant acquiring business with over 25,000 Point-of-sale (POS) terminals for debit/credit cards acceptance at merchant establishments. The Bank is well positioned as a leader in various net-based B2C opportunities including a wide range of internet banking service for Fixed Deposits, Loans, Bill Payments, etc. c) Treasury Operations Within this business, the bank has three man product areas Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the financial markets in India, corporate need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the banks Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.
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ATM Card, Inter branch banking, Net Banking, Bill Pay, Phone Banking, Debit Card and Mobile Banking, among others. HDFC Bank Preferred : A preferential Savings Account where you
are assigned a dedicated Relationship Manager, who is your one-point contact. You also get privileges like fee waiver, enhanced ATM withdrawal limit, priority locker allotment, free Demat Account and lower interest rate on loans, to name a few. Sweep-in Account : A fixed deposit linked to your Saving Account. So,
even if youre Savings Account runs a bit short, you can cheque (or use your ATM Card). The money is automatically swept in from your in from your fixed deposit into your Savings Account. Super Saver Account : Gives you an overdraft facility up to 75% of your
Fixed Deposit. In an emergency, you can access your funds while your Fixed Deposit continues to earn high interest. HDFC Bank Plus : Apart for Regular and Premium Current accounts we
also have HDFC Bank Plus, a Current Account and then some more. You can transfer up to Rs. 50 lakh per month at no extra charge, between the four metros. Your can also avail of cheque clearing between the four metros, get cash delivery/pickup up to Rs. 25,000/-, home delivery of Demand Drafts, at-par cheques, outstation cheque clearance facility, etc.
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can also access your Demat Account on the Internet. Innovative Services for your convenience... Phone Banking : 24-hour automated banking services with 39
Phone Banking numbers available. ATM 24-hour Banking: round. Inter-city/inter branch banking 289 branches in 151 cities. Net Banking : Access your bank account from anywhere in the : Access your account from any of our Apart from routine transactions, you can also pay
your utility bills and transfer funds, at any of our ATMs across the country all year
world, at anytime, at your own convenience. Your can also view your Demat Account through Net Banking. Mobile Banking Rupees. Mobile Banking transactions from your cell phone. Bill Pay : Pay your telephone, electricity and : Access your account on your mobile : An ATM card your can shop with all over the country and in over 140 countries with. You can spend in any currency, and pay in
phone screen at no airtime cost. Use SMS technology to conduct your banking
mobile phone bills through our ATMs, Internet, phone or mobile phone. No more standing in long queues or writing cheques.
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Loans for every need Now, loans come to you in easy-to-pay monthly installments, and are available with easy documentation and quick delivery. With e-instant loans, you can even apply for loans on the Net and approval in just 60 seconds. Personal Loans : Take a loan of up to Rs. 3 lakh for a wedding,
education, purchase of computer or an exciting holiday. New Car Loans and Used Car Loans: processing at attractive interest rates. Loans against Shares : Get an overdraft up to Rs. 10 lakh at an attractive interests rate against physical shares, up to 50% of the market value of your shares. In case of Demat Shares, you can get Loans against Shares of up to 65% of the market value of your shares, till Rs. 20 lakh. Two Wheeler and Consumer Loans: your home. Demat Account demat account on the internet. Current Account : Get a personalized cheque book, monthly : Protect your shares from damage, loss and To help you buy the best durables for Finance up to 90% of the cost of a
car, new or used! And the loans come to you with easy documentation and speedy
theft, by maintaining your shares in electronic form. You can also access your
account statements, interbranch banking and much more. Mutual Funds : Apart from a wide choice of mutual funds to suit
your individual needs, you benefit from expert advice on choosing the right funds based on in-depth market analysis. Babasabpatilfreepptmba.com Page 13
card, accepted worldwide from a world-class bank. If you have outstanding balance on your other credit cared, you can transfer that balance to this card at a lower interest rate. NRI Services : A comprehensive range, backed by unmatched features and world-class service, ensures NRIs all the banking support they need. Forex Facilities : Avail of foreign currency, travelers cheques,
foreign exchange demand drafts, to meet your travel needs. Insurance* : HDFC Bank now brings your life insurance and Pension Solutions like Risk Cover Scheme, Saving Scheme, childrens Plan and Personal Plan from HDFC Standard Life Insurance Co. Ltd.
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Awards and Achievements Banking Services HDFC Bank began operation in 1995 with a simple mission: to be a World-class Indian Bank. We realized that only a single-minded focus on product quality and service excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal. It is extremely gratifying that our efforts towards providing customer convenience have been recognized both nationally and internationally. In the year 2000, leading financial magazine Forbes Global named us in its list of The 300 Best Small Companies in the world and as one of the 20 for 2001 best small companies in the world. In 2003, Forbes Global again named us in its ranking of Best Under a Billion, 200 Best Small Companies for 2003. London-based Euro money magazine gave us the award for Best Bank India in 1999, Best Domestic Bank in India in 2000, and Best Bank in Indian in 2001 and 2002. Hong Kong-based Finance Asia magazine rated us Best Domestic Commercial Bank in India in 1999, 2000 and 2001 respectively and Best Local Bank in India in 2002. Asia money magazine has named us Best of Commercial Bank in India 2002.
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PRODUCT PROFILE Today is an era of smart money, or plastic money. The very concept of currency notes are getting changed day-by-day as more and more people are going for credit and debit cards. Nowadays life being to fast that people dont want to stand in the queue of conventional banks which have taken at least a half hour or so. Apart from the people dont want to carry cash to increases the thickness of their wallet for all these reasons concept of smart money or plastic money have come to picture in the form of various credit and debit cards. Moreover a carry 2-3 card in wallet is seen as al status symbol in the society. For your every need you have credit card which can buy each and every thing. Your think of it you can buy it from your credit card. Starting from a pack of salt from the departmental store to complex software from the vendor you can buy everything from your credit card. But how this system actually works? How can you buy a thing just by a swipe of plastic card? Answer is through EDC machines (electronic data capture), which the merchant or the shopkeeper should have if he accepts credit cards. These machines are connected by the normal telephone lines to the banks server, which have a database of the cardholder. From this database it checks whether a particular person is eligible to purchases that thing. If yes, it sends the approval to EDC terminal installed at merchant shop. All this happens in couple of seconds. Then the purchases cycle get Babasabpatilfreepptmba.com Page 17
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OPERATIONAL DEFINITION 1. EDC Machine:Electronic data capture machine which is used in transaction involving credit cards and debit cards. 2. Swipe:Swipe is the touch of a debit card/credit card basically to the EDC machine, cards have a magnetic stripe at the back of it which contain all the information about the card holder. So the movement a card is swiped in the EDC terminals all information about the cardholder goes to bank server. 3. Approval:Approval is given by the bank whether a card holder is eligible for a credit card or not. Once a card has been swiped the entire data goes to bank server and it checks whether the cardholder is eligible for the credit card. It send approval immediately to the EDC terminal in which card has been swiped.
4. Batch settlement:Batch settlement is done at the day end of the business. All the transaction of the day of each terminal is recorded in the bank server. At the day end when the merchant does the batch settlement on his EDC terminal
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WIDEST RANGE OF CARDS ACCEPTED As HDFCs Merchant establishment, merchant can accept VISA, Master Card, VISA Electron, Master Card Electronic cards. Merchants can also accept American Express Cards on the terminals providing by HDFC Bank. Electronic Processing HDFC Bank provides state-of-the-art, latest generation EDC terminals that handle authorization and settlement of transaction. This assists Merchant in processing card transaction in the most efficient and secure manner, at Babasabpatilfreepptmba.com Page 20
Merchant Current Account Options With HDFCs Current Accounts, there are less delays and hassles in handling payments for cards accepted by merchant. Unlike cheque payments, HDFC provide a totally electronic settlement solution. Wherein payments for settled card transactions are credited automatically in the merchants current account with HDFC Bank. Merchant can also access Merchant Current Account using HDFCs Free Phone Banking and Free Net Banking services. There is multiple Merchant Current Account option. Babasabpatilfreepptmba.com Page 21
HDFC Bank Merchant Plus Single account, multi-city banking If merchants business regularly requires receiving and sending funds to various cities in the country, HDFC Bank Merchant Plus Account provides your with the means to facilitate such transaction efficiently. With just one account Merchants have access to more than 85 cities in the country. In other words, the power of a single account and multi-city banking. This results in huge saving on intercity movement of funds and other service charges. The average balance requirement for the HDFC Bank Merchant Plus account is Rs. 50,000 per quarter. Exclusive benefits for the HDFC Bank Merchant Account holders Free at-Par cheque facility Free funds transfer Free Pay-Order/Demand Draft payable on HDFC Bank locations. Free online, real time Net Banking Huge savings on Bank charges. Cash pick-up (available in selected cities) and Demand Draft delivery at a nominal cost. Free Debit Card for sole proprietors.
Regular Merchant Current Account The regular Merchant Current Account offers you trouble-free banking with a very reasonable average quarterly balance requirement of Rs. 10,000 only. Besides, HDFC will give a Free-International Debit Card (only for sole proprietors). HDFC also offer a zero Balance Merchant Current Account for merchant payments. However, branch transaction like cash deposit, cash withdrawal etc. is not permitted under this Merchant Current Account. Babasabpatilfreepptmba.com Page 22
Facilitation of payments through Credit and Debit cards Electronic processing:HDFC Bank provides Electronic terminals for processing card transaction. Online, Real time:All transaction are confirmed with Issuing Banks online, real-time before handling over of goods/services. Quick Settlements:HDFC Bank pays for the transaction the next business by morning. MIS Reports:HDFC Bank provides two levels of MIS reports for easy reconciliation Product Features All Visa/Master Card/American Express Credit Cards (subject to the agreement signed with AMEX bank) and all Visa Electron/Maestro Debit Cards. Latest State-of-Art EDC terminal including the first mobile EDC Personalized service by Bank staff. Payment options Credit to Account or Cheque (only to very large relationships) Competitive pricing including Rental option for EDCs Three Current Account Options Zero Balance Current Account Regular Merchant Current Account Babasabpatilfreepptmba.com Page 23
Regular Merchant Current Account Free Debit Cards Daily Cash Deposit limit of Rs. 25,000 Free Cheque Book Merchant Plus Account Free Debit Card Enhanced Cash Pick-up limit of Rs. 1 Lac per day Free Multi city cheque Book Record maintenance by Merchant A copy of Charge slips by Cardholders for a period of one year Copies of Bills for which the cardholders is being charged. Set-up/Infrastructure Operations Centralized at Chandivalli Merchant Relationship Officers front-ending the Sales Relationship Merchant Helpdesk operational EDC Terminals installed and maintained by the Bank Back-end systems owned and operated by the Bank
ALL transactions of a day are paid for the next business day morning
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Process for Merchant HDFC Bank shall provided EDC terminals at Merchant outlet Merchant to provide shall be completed by swiping the customer cards on the EDC terminals Swiping the customer cards on the EDC terminals shall complete all Cards transactions. At the end-of-the day, a Settlement function is performed on the EDC. All transition Upon successful completion of settlement, the EDC terminal provides a detail Summary report HDFC Bank shall credit Merchants Account with the net proceeds on the next business day morning HDFC Bank shall also provide a detailed MIS report for the Settlements from each location/EDC terminal for merchants with of Rs. 1 Lac and above
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stores etc.
Negative Merchant Categories Competitors Main Competitors: CITI BANK Default choice, Blanket pricing, poor Relationship and highhanded approach. Only other acquirer to accept PIN based cards HSBC Very strong Relationship based offering, Amex terminal sharing is the main advantage, Present at high-end Merchants and all Hotels, Key to success is Amex terminal sharing. Jewelers (Non Citi/HSBC) Travel Agents non IATA Carpet Merchants Curios/Handicrafts catering to Foreign Tourists
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BACKGROUND OF THE PROBLEM The survey was conducted to find the perception of customers about EDC terminals and to design promotion strategies for HDFCs EDC terminals Bangalore market. This is about sales promotion of HDFCS EDC machine in Bangalore market. This survey is for potential customers. This includes the comprehensive market survey and studying the dynamics of the market in terms of perception. And it also includes the analysis of the information gathered and implementation of sales strategies and techniques devised by the team. The study was conducted to analyze the merchant requirements and service related issue concerned with the EDC (Electronic Data Capture) machine and then proceed to sales. Tools such as questionnaires, telephonic interviews were used in identifying the requirements and structured interviews were used to proceed further.
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STATEMENT OF PROBLEM Today is an era of smart money or plastic money. The very concept of currency notes are getting changed day-by-day as more and more people are going for credit and debit cards. People do not prefer to carry cash that increases the thickness of their wallet and concept of smart money or plastic. Money has come into picture in the form of various credit cards. To carry 2-3 cards in wallet is seen as status of symbol in the society. Merchant Establishment: - This department started its operations in Bangalore in the year 2002. The complete department deals with only one product and that is The EDC (Electronic Data Capture) machine because HDFC Bank found a need to enter the market of EDC machine in Bangalore as the silicon City was having a very high potential for merchants who were in need of this machine and were was less awareness about this particular product. Though there are more than around 15 players in this market its main competitors are CITI, ICICI, and HSBC. Its gained the late mover advantage by giving additional services and establishing stronger relationship with the merchant. The study aims at deriving information about non customers of HDFC and the willingness level among those customers to change to HDFCS EDC machine. Babasabpatilfreepptmba.com Page 28
NEED AND IMPORTANCE OF THE STUDY Presence of a large number of players especially in the banking sector has ensured stiff competition in the industry. Competition is based on technology, benefits given, and services provided and more importantly price. Key to success is therefore value additional in the service but at affordable prices. . The survey intends to gain knowledge of the non customers in the Bangalore market and determine the pulse of the market regarding the acceptance of the EDC terminal, and to know the satisfaction level also. The bank can extend its added services to customers and draw attention towards the additional benefits the merchant would be entitled to if he would implement the banks EDC machine
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1. To know the perception of the customer about EDC terminals. 2. To find out the Brand Equity among the EDC Terminal providers. . 3. To suggest creative ways for promoting and penetrating the Market. 4. To create knowledge about the EDC terminals provided by HDFC.
LIMITATIONS 1. The collected data is confined only into the boundaries of Bangalore market. 2. Sometimes respondents may provide false information.
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METHODOLOGY 1. Well-structured questionnaire comprising both open-ended and A pilot survey was conducted to ensure the accuracy of the designed The necessary changes were made in the questionnaire and the Personal interviews were conducted as per the convenience of the Collection of data from customers The primary data from the respondents is obtained through closed questions were designed for the respondent. questionnaire actual survey was conducted after the approval from the project guide. respondents and also keeping the time constraint.
structured questionnaire as well as telephonic interviews administering questionnaires as per the convenience of the respondents. 2. This data was collected from the records existing in the bank, company website & through internet.
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TYPE OF RESEARCH The research work is of descriptive type. A research design is purely and simply the frame work or plans for a study that guides the collection and analysis of data. The information is collected from the 200 merchants having EDC machine (Non HDFC) in their firms. The information regarding the role of factors affecting sales promotion and their present EDC services.
RESEARCH DESIGN SAMPLE UNIT : Merchants and Businessmen having EDC terminals (Non HDFC). SAMPLE SIZE : The sample size taken for the study was 200
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ACTUAL COLLECTION OF DATA Data was collected from both primary and secondary source. PRIMARY DATA The interviewer approached the respondents, and a structured questionnaire was given to the respondents with a request to answer the questions and return the questionnaire. SECONDARY DATA Data was also collected from the records existing in the bank.
TECHNIQUE FOR ANALYSIS Data collected through questionnaire has been analyzed using simple percentage analysis. Based on the analysis conclusions and suggestion have been drawn.
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Findings
1. According to you EDC terminals are convenient for:
Finding
Opinion Convenient for Customers Convenient for business Both Total No. of Respondents 42 8 150 200 Percentage 21 4 75 100
75%
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It can be concluded from the above table that 75% of the respondents had opinion that EDC facility was convenient for both business and the customers, 21% of the respondents feels that EDC facility was convenient for customer, 4% of respondents feels that it was convenient for business.
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THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC 2. Are you Aware of HDFCs EDC terminal & service?
Opinion Yes Opinion No Yes Total No Total No. of Respondents 180 No. of20 Respondents 194 200 6 200 Percentage 90 Percentage 10 10097 3 100
Findings
The above table shows that, out of respondents, 97% of them were aware about the EDC services providing by HDFC and 3% of them of them were not aware about the service. 3%
97 %
3. Are you Aware of HDFCs tie-up with American Express on terminal sharing?
Finding
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10 %
YES NO
90 %
The above table shows that,90% of the respondents were aware of HDFCs tie-up with American express on EDC terminal sharing,10% of the respondents were not aware of tie-up with American express Bank.
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4. Rank the following in order of Brand equity among EDC service? (1 for highest Brand equity and 5 for lowest Brand equity)
Opinion CITI Bank ICICI Bank HDFC Bank HSBC Bank STAN-C Points 862 823 782 292 241 Rank 1 2 3 4 5
Findings
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The above table shows that, in terms of brand equity CITI Bank got first rank among EDC service providing banks, ICICI Bank got second rank, HDFC Bank got third rank, HSBC and STAN-C bank got fourth and fifth rank respectively.
5. What are the rates charged by the present terminal you use?
Findings
Rates < 1.85% 1.85%- 2% > 2% Total No. of Respondents 120 74 6 200 Percentage 60 37 3 100
The above graph shows that 60% of the sample is charged less than 1.85%, 37% is charged between 1.85% - 2% and only 3% are charged more than 2%.
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Percentage 80 20 100
20 %
YES NO
80 %
The above table reveals that, 80% of the respondents were satisfied with present rates. 20% of the respondents were not satisfied with present rates
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Opinion Pricing Service Approached First Relationship with the bank Other Total
Percentage 61 23 8 7 1 100
7. What was the most important factor for selecting the present banks EDC Terminal you use? Finding
70 60 50 40 30 20 10 0
61
23 8 Pricing Service 7
1 Other
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The above table shows that, 61% of the respondent had opinion that pricing Average turnover(Rs.) No. of Respondents Percentage <25000 20 10 25000 - 50000 60 30 50000-100000 28 14 100000 - 200000 18 9 200000 - 500000 44 22 500000 - 1000000 24 12 >1000000 TOTAL 6 200 3 100
offered was the factor for selecting the present banks terminal, 23% of the respondent agreed that service provided was the factor, 8% of respondents gave respect to the first approach made by bank, 7% of respondents agree respect for their earlier relationship with the bank, 1% of the respondents assess other factors.
25
<
-1
10
20
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It can be concluded from the above table, 10% of the respondents agree that they have turnover of less than Rs.25,000 per month, 30say between Rs. 25,000-50,000, 14% say between Rs.50,000- 1,00,000, 18% say between Rs.1,00,000- 2,00,000, 22% say between Rs2,00,000-5,00,000,
12% say between Rs. 5,00,000-10,00,000 and only 3% of the respondents say above Rs.10,00,000.
9. How do you rate the response on redressal of complaints by the present terminal provider ?
Findings
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Percentage 28 70 2 0 100
VERY FAST
FAST
SLOW
VERY SLOW
It can be concluded from the above table that, 29% of the respondents agreed that the redressal of complaint was fast, 70% of the respondents agreed the redressal of complaint was very fast, 2% of the respondent opined that the redressal of complaint was slow, 0% of the respondent opined that the redressal of complaints was very slow.
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THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC 10. Is the EDC machine regularly serviced by the provider?
Opinion Yes No. Total No. of Respondents 180 20 200 Percentage 90 10 100
Findings
10 %
YES NO
90 %
The above table reveals that, 90% of the respondents agree that their machine being serviced regularly. 10% of the respondents did not agree in this regard.
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THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC 11. Does your relationship officer visit you regularly?
Opinion Yes No. Total No. of Respondents 190 10 200 Percentage 95 5 100
Findings
The above table reveals that 95%of the respondents agreed that their relationship officer were approached regularly, 5% of the respondent did not agree in this regard.
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THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC 12. Are you satisfied with the present service provided by the EDC Terminal provider?
Opinion Yes No. Total No. of Respondents 150 50 200 Percentage 75 25 100
Findings
25%
YES NO
75%
The above table reveals that, 75% of the respondents were satisfied with present service. 25% of the respondents were not satisfied with present service.
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THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC 13. Has a HDFC sales person approached you before?
Opinion Yes No. Total No. of Respondents 192 8 200 Percentage 96 4 100
Findings
The above table reveals that 96%of the respondents agreed that HDFC salesperson approached before, 4% of the respondent did not agree in this regard.
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14. Would you buy a HDFC EDC Terminal if you get lower rates?
Findings
Opinion Yes No. Total No. of Respondents 120 80 200 Percentage 60 40 100
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The above table reveals that 60%of the respondents agreed to change to HDFC, 40% of the respondent did not agree in this regard.
15. Would you buy a HDFC EDC Terminal if you get more value added services?
Findings
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Percentage 65 35 100
The above table reveals that 65%of the respondents agreed to change to HDFC, 35% of the respondent did not agree in this regard.
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THE PERCEPTION OF THE CUSTOMER ABOUT EDC TERMINALS AT HDFC 16. Would you buy a HDFC EDC Terminal if bank branch is near to you?
Findings
Opinion Yes No. Total No. of Respondents 110 90 200 Percentage 55 45 100
The above table reveals that 55%of the respondents agreed to change to HDFC, 45% of the respondent did not agree in this regard
17. Would you buy a HDFC EDC Terminal if documentation procedure is easier ?
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The above table reveals that 57%of the respondents agreed to change to HDFC, 43% of the respondent did not agree in this regard.
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FINDINGS 1. 75 % of the sample said that they were satisfied with their present EDC terminal provider. 2. 75% of the sample opinioned that EDC machines were convenient for both customers and business. 3. 97% of the sample was aware of HDFC providing the EDC terminal. 4. 90 % of the sample said that they were aware of HDFCs tie up with American Express card in the terminal. 5. In terms of brand equity Citibank (862 pts) was ranked first, followed by ICICI (823) and HDFC (782). 6. 90 % sample opinioned that their machines were being serviced regularly. 7. HDFCs sales person had approached 96 % of respondents earlier for an EDC terminal. 8. 60 % of the sample said that they would switsh to a HDFC terminal if lower rates were charged. 9. 61 % of the respondents said that pricing was the most important factor for selecting an EDC terminal, followed by service level( 23 %). 10. 11. 12. 13. 55 % of the respondents opinioned that nearness of the bank was an important factor in selecting the terminal. 57 % of the respondents said that they would go in for a HDFC terminal easier documentation. Most opinioned those merchant services promptly attended to their complaints (Very Fast 28%, Fast 70%, Slow 2%, Very Slow 0%). 65 % of the respondents said that they would go in for a HDFC terminal if more value added services were provided.
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SUGGESTIONS The Market for EDC Terminals is highly competitive with many large established players. Promoting the sales of EDC terminals and penetrating the markets in such competitive situations is a challenging task. 75 % of the respondents of the said that they are satisfied with their present EDC terminal providers, this makes the promotion and penetration of HDFC EDC terminals into the market even more difficult. The findings however reveal a few important points, which would help promote the HDFC terminals. The suggestions are as follows. 1. Provide more value added services as 65 % of the respondents said that they would go in for a HDFC terminal if more value added services were provided. 2. HDFC should charge lower rates than its main competitors in order to promote sales as 60 % of the sample said that they would purchase a HDFC terminal if lower rates were charged. 3. HDFC should keep its documentation procedure simple. 4. HDFC should try and solve its customers complaints as fast as possible as most of the respondents rated their present terminal providers as fast in attending to their complaints. HDFC can promise to solve its customers complaints within some time frame. 5. As 96 % of the respondents said that a HDFC sales person had earlier visited them for a EDC terminal connection, HDFC must take into consideration the findings and suggestions of this project and develop new promotion strategy before approaching the potential customers.
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CONCLUSION
Merchant service sector has become extremely complex. Todays customers demand more and more facilities from their bank. Most merchants were aware about the facilities provided by the bank. In this era of cutthroat competition, banks have to focus on customer care and in attracting new customers.
This project helps in studying the EDC service providers in Bangalore market, and determining customers willingness to change to HDFC. segment. The project also aimed at ascertaining the competition level in the EDC machine
To conclude CITI enjoys the most number of customers in this category followed by ICICI,HDFC AND HSBC behind in the queue. Finally we conclude by determining the most of the merchant greater returns from the bank in the form of higher better service. anticipated
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IMPLICATION This study gives relevant information to the company to adopt the best promotional strategy, to know about the players in market and their marketing strategy. It helps the company to know more about the present status of market and how to target the audience, how to promote sales, how to fix the rates charging to satisfy customers. This study is helpful for the company to know the nook-n-corner of market. It gives information about needs and wants of the customers, reasons for their acceptance, and desired rate charging.
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BIBLIOGRAPHY BOOKS 1. Tull & Hawkins Marketing Research. 2. Donald R. Cooper & Pramela S. Schindler Research Methodology 1999, Tata Mc Graw Hill 3. Philip Kotler Marketing Management 1999, Prentice Hall of India Pvt. Ltd. 4. Valeri Ziethamal Services Marketing Tata Mc Graw Hill 5. Company Journals Website- www.hdfcbank.com
Questionnaire
Name of the Firm :
: : :
2. Are you Aware of HDFCs EDC terminal & service? 3. Are you Aware of HDFCs tie-up with American Express on terminal sharing? 4. Rank the following in order of Brand equity among EDC service? (1 for highest Brand equity and 5 for lowest Brand equity)
(A) CITI Bank (B) ICICI Bank (C) HDFC Bank (D) HSBC Bank (E) STAN-C (A) Yes (B) No (A) Yes (B) No
5. What are the rates charged by the present terminal you use?
(A) < 1.85% (B) 1.85%- 2% (C) > 2% (A) Yes (B) No Babasabpatilfreepptmba.com Page 59
What was the most important factor for selecting the present banks EDC Terminal you use?
(A) Pricing (B) Service (C) Approached First (D) Relationship with the bank (E) Other
9. How do you rate the response on redressal of complaints by the present terminal provider ?
(A) Very Fast (B) Fast (C) Slow (D) Very Slow.
12. Are you satisfied with the present service provided by the EDC Terminal provider?
(A) Yes (B) No (A) Yes (B) No
13. Has a HDFC sales person approached you before? 14. Would you buy a HDFC EDC Terminal if you get lower rates?
(A) Yes Babasabpatilfreepptmba.com Page 60
15. Would you buy a HDFC EDC Terminal if you get more value added services?
(A) Yes (B) No
16. Would you buy a HDFC EDC Terminal if bank branch is near to you?
(A) Yes (B) No
17. Would you buy a HDFC EDC Terminal if documentation procedure is easier ?
a. Yes b. No
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