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AN ANALYTICAL STUDY OF COMMERCIAL BANKING SERVICES & CUSTOMER SATISFACTION (With special reference to S. B. I.

Gorakhpur) Alok Kumar Srivastava1 Dr. P. chatterjee2 __________________________________________________________________ ABSTRACT


The banking industry like many other financial services industries is facing a rapidly changing market, new technologies, economic uncertainties, fierce competition, and especially more demanding customers; and the changing climate has presented an unprecedented set of challenges. Customer service is one integral part of any facet of banking and it defines future of any banking organization. In banking sector, the whole range of activity and generation of income swivels around the customer. It is necessary to identify the key success factors in the banking industry, in terms of customer satisfaction with the help of five dimensions of SERVQUAL viz. keeping assurance, reliability, responsiveness, physical facilities and empathy, keeping in view the increasing market size and intense competition. This study aims to analyze customer satisfaction of commercial bank State Bank of India. SERVQUAL scale was used to determine customer satisfaction. The findings revealed that 'Responsiveness' was the main dimension governing customer satisfaction of SBI. Key Words: Customer satisfaction, SERVQUAL, assurance, reliability, responsiveness, physical facilities and empathy, etc.

__________________________________________________________________ I.0INT CTION RODU


Business firms realize that marketing is a core element of management philosophy and key to its success lies in focusing more and more on the customers. It is the customer who decides where the firm is hedging. Thus, the main challenge before the marketers is to identify what would appeal and convince the customer and ensure that customers need, want & demands are satisfied. Today customer looks out value for money, therefore Marketers are trying to enhance the concept or value through unique delivery methods. They realize that product services,

Research Scholor, Deen Dayal Upadhayay Gorakhpur University, Gorakhpur. 2 Professor, SCM Lucknow.

characteristics, customer's aspirations & perceptions and the availability of competing alternatives can be used to check customer satisfaction. All the services and facilities provided by the commercial banks play important role for measuring the level of the customer satisfaction and quality of services. In this research, researcher has tried to investigate the expectation and perception of the customer of State Bank of India, who avail the services of commercial banks by using the services quality model. The whole study is carried out using SERVQUAL on the basis of the five dimension viz., assurance, reliability, responsiveness, physical facilities and empathy.Major focus of the study is identifying the services quality gap between consumer's expectation and perception for the commercial banks in Gorakhpur. EXPECTATION V/S PERCEPTION
CUSTOMER EXPECTATION

NOT UNDERSTAND THE CUSTOMER EVALUATION PROCESS & SATISFACTION FOR SERVICES

CUSTOMER GAP

CUSTOMER PERCEPTION

II.0DIMENSIONS OF SERVICES QUALITY

The dimensions of customer satisfaction of services quality was originally introduced by Parasuramn A., Valerie Ziethaml and Leonard L. berry in 1995 in the arc of service quality. SERVQUAL was developed based on the view of the customer's assessment. This assessment was conceptualized as a gap between customer's expectations by way of SERVQUAL from a class of services providers and their evaluation of the performance of a particulars service provider. SERVQUAL are widely used in variety of studies that include public services, higher education, hotel, banking, consulting, tourism, marketing, hospital and telecommunication industry.

II.1 PHYSICAL FACILITIES Physical facilities refers `representing service physically'. In it modern looking equipment visually appealing physical facilities, goods and lucrative form of pamphlets/ proformas/ statements are involved. All these physical facilities are used by the customers to evaluate the quality of service. II.2 RELIABILITY Reliability means `delivering of promises'. Reliability can be defined as the ability to perform the promised services accurately and timely. Customers want to do business with these consumers who keep their promises, especially promises about their core services.

II.3 RESPONSIVENESS
Responsiveness means `willing to help the customers'. Responsiveness can be defined as employees willing to help the customers and giving the services promptly and within time. This dimension emphasize on attentiveness and promptness in dealing with customers request, question complains and problems.

ASSURANCE
Assurance means `inspiring trust and confidence'. Assurance can be defined as employees knowledge of the firm if employees have capacity to inspire trust and confidence to the customers. Customers want to do transaction if they feel safe. II.5 EMPATHY Empathy means `treating individually'. Empathy can be defined as the casing individualized attention the firm provides its customers. Employees should understand the specific needs of their customers.

III.0 OBJECTIVE OF THE STUDY

Objective of this research project is confined to examine the role of customers in the assessment ofser vicequality inSBI.The stud yalsoatt emptst oknowth ecusto mer satisfaction/dissatisfaction which is directly related to expected and actual service quality experienced in bank. III.1AR EA OF STUDY

The study is based on primary and secondary data. Primary data has been calculated from persons having account in SBI in Gorakhpur city by filling up well structured questionnaire and through personal meeting with customer. Secondary data was collected from website of SBI banks magazine and journals.

RESEARCH APPROACH
To collect primary data, `Survey research approach' was adopted for the project and for this communication approach; personal interview of the respondent was conducted.

RESEARCH INSTRUMENT
For the collection of primary data, a properly structured questionnaire was used.The questionnaire comprises both close ended and open ended questions, in case of close ended questions Likert scales have been used. III.4SA PROCESS MPLIN G It is not feasible to go for a population surveys due to this numerous customers and this scattered location. Hence researchers had gone for intelligent sampling. In this research, researcher surveyed 305 respondents who were having their account with SBI banks in Gorakhpur city. In this research stratified and convenience sampling method has been used for sampling procedures.

LIMITATION OF THE STUDY

Due to time and cost factor only 305 customers were surveyed. The study is limited to Gorakhpur city. All the information furnished by the respondent was treated as correct.

IV.0 ANALYSIS & INTERPRETATION OF DATA


Table no 1 presents the overall satisfaction/dissatisfaction of the customers towards SBI, Gorakhpur. Table: 1: Customer Satisfaction/dissatisfaction S.No. 1 2 Satisfaction/dissatisfaction Satisfied with the transacting bank Dissatisfied with the transacting bank Respondents 83 222 %

Total 305 The above table clearly indicates that most of the respondents (72.78%) were dissatisfied with the services offered by their transacting bank and a few (27.22%) respondents only were satisfied with the said banks services. Table: 2: Service Quality assessment of satisfied customers S.No. Services quality dimension 1Physical facility 2Reliability 3Responsiveness 4Assurance 5Empathy Expected % 77.71 80.72 80.24 77.34 77.34 Actual % 39.75 48.19 46.26 51.32 44.61

The above table despites that most of the respondents (80.72%) were satisfied with the services offered by the bank viewed their expected service quality from an `Excellent' bank based on reliability of bank's staff. However, perception of actual service in the transacting bank was very low (48.19%).

Similarly, the percentage of satisfied respondents who assessed other dimensions of expected and actual service qualities were 80.24% and 46.26% towards responsiveness,77.71 and 39.75% towards physical facilities, 77.34% and 51.32% towards assurance, 77.34% and 44.81% towards empathy, respectively. Table: 3: Services Quality assessment of dissatisfied customers Sl. No. 1 2 3 4 5 Services quality dimension Physical facility Reliability Responsiveness Assurance Empathy Expected % 80.06 84.23 88.37 85.40 84.05 Actual % 54.5 63.66 61.8 64.05 59.81

While most of the dissatisfied customers, 88.37% attributed responsiveness as the main dimension of services quality expected from bank, the corresponding response in the same dimension as perceived by the customers through this actual experience in the transacting bank was much lower 61.80%. Similarly, the expected and actual services qualities assessed by the above dissatisfied customers on other dimension were 85.40% and 64.05% towards assurance, 84.23%and 63.66% towards reliability, 84.05% and 59.81% towards empathy, 80.06% and 54.50% towards physical facilities respectively.

V.0DIS CUSSI ON

While making an assessment of customer's response with regards to his/her overall satisfaction or dissatisfaction with the transacting bank's services, it was found that most of the customers 78.78% were dissatisfied, while only 27.21% customers were satisfied. The interpretation was based on the services quality assessment made by both dissatisfied and satisfied customers. Customers who were dissatisfied considered the responsiveness dimension of services quality to the more important than other dimension. However, on all the dimension of the services quality

the transacting bank was perceived to be poor than the corresponding service offered by the bank.

VI.0 FINDINGS & CONCLUSION


The overall satisfaction or dissatisfaction of customers with regards to expected and actual services quality have been analyzed in this research paper and expressed dissatisfaction with the services offered by the bank. The dissatisfied customers attributed responsiveness dimension of services quality as the major lacuna with the transacting bank. Among the satisfied customers too there existed a disparity between the expected and actual service quality experienced at the transacting bank. These customers suggested that the bank is yet to instill confidence among the customers that it has the ability to provide excellent services dependably and accurately.

REFERENCES
1. Kotler P. and Armstrong G. (1991) "Principal of marketing" Englewood liffs New Jersay Prentice hall. 2. Fornell, C., "A national customers satisfaction parameters", the Swedish experience journal of marketing 1992. 3. Fornell, C. and Johnson M.D. "differentiation as a basis for explaining customer satisfaction across industries" journal of economic psychology. 4. Christopher lovelock, "Services Marketing" 4th edition Pearson education publishing. 5. Valarie A Zeithamal and Mary Jo. Bitner, "services marketing", 3rd edition Tata McGraw-Hill Publishing. 6. Y. Chandra Shekhar "Indian banking challenging ahead" Chartered financial analyst. 7. M. Y. khan (2001), "Financial Services" Tata McGraw-Hill publishing. 8. www.sbi.factors.com. 9. www.sbi.com

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