AProject Report on

Customer Satisfaction Measurement

at

Submitted to Guru Nanak Dev University

For the fulfillment of the degree of Bachelor of

Commerce III [Professional]

Session 2009-10

Submitted To:- Submitted By:-

CERTIFICATE

This is to certify that the project report entitled “CUSTOMER

SATISFACTION MEASUREMENT” in HDFC BANK. is a bonafide

research of Nitin Sharma conducted by him at D.A.V. College,

Jalandhar under my guidance and supervision to fulfill the

requirements of the Degree of Bachelor Of Commerce (Professional) 3rd

Year.

Guide:

Preface

As per the direction of our course structure, we the students of

B.Com (Prof.)-III have to undergo Summer Training for the period of 8

weeks with the different commercial enterprises of the country. I have

undergone training in HDFC Bank. I made a project on Customer

Satisfaction Measurement in HDFC Bank.

This report is a record of the training. The objective of the

project is to know about the services offered by the bank to its

customers and to know about the level of satisfaction of the

customers towards the bank services.

ACKNOWLEDGEMENT

There are competent and indefatigable lecturers and guides, who

bestow their fortune upon students, particularly in respective field.

Words are often too weak to express the inner feelings. I am really

thankful to my supervisor and guide Mr. ASHOK KAPOOR (Lect.

in Commerce Deptt.) for this guidance and full co-operation in

preparing each and every part of this report. Without his support

this report would have been a Dream. I am really honored working

with him.

I feel extremely pleased to our worthy Principal Dr. V.K. TIWARI

and our H.O.D. Mr. T.R. DHINGRA who sanctioned the authority

letter that helped me in joining HDFC Bank, Jalandhar.

I express my sentiments of gratitude and indebtness to branch

manager of HDFC Bank, to give me the opportunity to get summer

training.

Lastly, I am heartily thankful to all the persons who helped and

cooperated with me for completion of this report. Without their

help this report would not have been completed.

STUDENT DECLARATION

This is to certify that I, Nitin Sharma of B.com. (Prof.)-III of D.A.V College, Jalandhar

have undergone Summer Training at HDFC Bank. Jalandhar and have prepared the

Project Report entitled "Customer Satisfaction Measurement". This is an original &

purely authentic work.

Date:

EXECUTIVE SUMMARY

Customer satisfaction is a post purchase experience that a customer gets

after consumption of products and services and becomes deciding factor for

customer to make rational decision of repurchase and to recommend it to others.

But in a purely service industry service is provided, consumed and analyzed at

the point of consumption of service. This study basically focuses on

measurement of customer satisfaction related to Service offered and rendered at

HDFC BANK.

This study gives a bird’s eye view of the hard and soft services provided by

HDFC BANK (retail) to their clients.

Recommending the services, rating the experience with HDFC BANK,

service charges and suggestions were some of the aspects explored. Rating the

products, handling of compliant calls, response time, repeat calls encounter and

overall level of satisfaction were some of the issues were also discovered.

To accomplish the task, a survey was carried in and around Jalandhar city

(retail outlets of HDFC BANK) with a sample of 123 respondents taken on a

random basis approaching the customers who walked in during banking hours. A

structured questionnaire was prepared and administered and the data so

collected was analyzed both by percentages and statistical methods. Extensive

use of SPSS (Statistical Package for Social Sciences) software was incorporated

for getting the analytical report.

81% customers recommend HDFC BANK products, 91% of these are

having good purchasing experience with the company.58% of the customers said

that the maintenance charges charged by the company is moderate, 55%of

which are having good purchasing experience and 85% of which recommend

HDFC BANK to others.63% customers are satisfied with the existing services

rendered by the organization. Majority (67%) of customers rated the HDFC

BANK products as “good” and 67% of which are highly satisfied with the service

of the company. The collected data was also analyzed to calculate the customer

satisfaction for the different sets of respondent.

Is a satisfied customer asset for a company? Definitely not. Unless and

until he becomes a loyal customer. Approximately 76% customers of HDFC

BANK. are discovered to be loyal. This is the area where the organization can

improve in the near future.

Researchers by their ability have provided some measures to convert a

satisfied customer into a loyal customer.

SUGGESTIONS: E-mails can be used effectively for disseminating

information among customers. Since application of this is most cost effective, the

organization can mail the required information to their customer.

This study is an earnest effort to enhance the practical knowledge by

measuring the customer satisfaction as well as contributing to the organizational

efficiency by suggesting ways to manage and improve the same profitably in the

highly competitive time to come.

Contents

- Introduction

- Customer Satisfaction Concepts

- Sampling Design

- Research Design

- Research Findings

- Research Analysis

- Customer Satisfaction

Measurement

- The road ahead

- Conclusions

- Appendices

INTRODUCTION

INTRODUCTION

PROBLEM STATEMENT: -

The management of HDFC BANK desires to know about the satisfaction of

their customers related to the Retail Banking products and also it wants to know

the attitude, image and motivation of customers towards banking services

provided by them.

OBJECTIVE OF THE STUDY

To measure the Customer Satisfaction towards banking services rendered

by HDFC BANK Retail div.

IMPORTANCE OF THE STUDY

Besides measuring Customer Satisfaction, we also came to know about

following crucial aspects related to

CUSTOMER

Recommendation of the HDFC BANK products to others

Their experience at HDFC BANK Retail branch.

Feedback on maintenance charge

CUSTOMER

Handling of complaint calls

Response time (TAT)

Knowledge of the employees (Personal bankers and tellers)

Repeat calls encounter

LIMITATIONS OF THE STUDY

The customers’ study was conducted only in Jalandhar city. The results

therefore are confined to this area only and need not necessarily be

applicable to other areas.

The sample size of the customers was small, so it was not able to convey

the attitude of the customers

Inadequate time was the major constraints during the project work

Respondents might have some biased views and this could have affected

the findings to a certain extent

In the questionnaire, questions are very limited, because it is very difficult

to get the information from the busy officials.

CUSTOMER SATISFACTION

CONCEPTS

CUSTOMER SATISFACTION

Customer satisfaction means giving the customers what they really want,

when they want it and the way they want it. It involves understanding customer

expectations and meeting them fully.

It can be defined as” an outcome of purchase and use resulting from the

buyer’s comparison of rewards and the costs of the purchase in relation to the

anticipated consequences. (Churchill and Surprenant 1982, 493)

Customer is an individual or an organization. Their requirements are very

similar.

Conformance of services to their requirements and its performance in

actual stage

Competitive prices

Quality and reliability

Prompt delivery

Service

CUSTOMER SATISFACTION – NEED

The age of mass production and mass distribution welcomed by most

customers and organizations, has had one negative consequence, it has

distanced those who produce goods and services from those who consume

them. In the era preceding mass distribution, producers found out very quickly

how satisfied or dissatisfied their customers were in the course of their frequent

and necessary interaction with their customer. This face-to-face interaction

reminded the producers’ daily of the sovereignty of customers. The feedbacks

were readily accepted from the customers and were adopted for making desired

changes to improve their services and improve customer satisfaction. So

customer satisfaction was a daily phenomenon.

Enter the era of mass distribution and the channels of distribution created

to disseminate products and services. This has resulted in distancing customers

from the producers by the distribution channels. Intermediary institutions

maintained this pipeline of products and services whose job was to move the

product or services from the producer to end customers. A natural reaction for

the producers was to give up or delegate responsibility for customers servicing,

depending on newly created intermediaries to look after customer’s satisfaction.

Delegating responsibilities was a bad idea in two respects: first, it eliminated

once and for all direct interaction with customers. Second, customer became a

missing component in the producers’ decision set.

IMPORTANCE OF CUSTOMER SATISFACTION

Differentiation strategy: -

Satisfaction is quickly becoming the key to competitive posture within an

industry. Initially, products or services secure life in the market by fulfilling a basic

need. But only offering minimal functionality grants a product nothing than a

commodity status. To ensure long-term market success, businesses have

created brands. Brands allowed businesses to develop and sustain an image,

differentiating one another’s products in the eyes of customer. Today most

companies are leveraging branding to its maximum benefit.

To further differentiate brands, customer satisfaction is the most likely next

strategy. Companies are realizing that the brand that best satisfies its customers

not only keeps them longer, but also benefits from positive word of mouth.

Improved profitability: -

There is both an intuitive belief and empirical evidence that improved

customer satisfaction will increase organizational profitability.

Improved customer retention: -

Satisfaction extends customer lifetimes and lifetime values. Also focusing

on satisfaction helps to estimate negative word if mouth of dissatisfied

customers. Losing a not satisfied customer is more severe than it sounds

because one dissatisfied customer may speak to as many as nine others,

increasing its dissatisfaction by nine folds.

Improved market share: -

There are always four sources of business for a firm. Four sources of

customers in any purchase decision have been identified as: retained customers,

customers switching from competition, customers new to the category and

customers leaving the category. Different probabilities of success are associated

with each of these four classes of customers because retained customers exhibit

probability for additional business, they deserve more attention and focus than

they currently receives.

Customer Satisfaction has long reaching impact on the current and perhaps

future viability of an organization. The cycle suggests that satisfied customers

tolerate higher margins that can be used to better pay employees. This boosts

employee moral, reducing employee turnover, which in turn helps to produce

more satisfied customers and so on.

BY PRODUCT OF CUSTOMER SATISFACTION

Thus by enhancing the relations with the customers by taking an initiative

towards their satisfaction thereby attracting them will ultimately improve their

perception of value towards the organization which will lead to increase in profits.

ROLES OF CUSTOMER SATISFACTION MEASUREMENT:

Information:

The primary intention for measuring customer satisfaction is to collect

information regarding either what customers report needs to be changed ( in a

product , service , or delivery system ) or to assess how well an organization is

currently delivering on its understanding of these needs. This is an

informational role. As such, marketing research and psychological

measurement have much relevance.

Communication:

The very act of surveying customers conveys a very positive message; the

organization is interested in its customers’ well-being, needs, pleasures, and

displeasures. While this is admittedly a “marketing message “,

there is nothing wrong in allowing a survey to serve both the informational and

communication roles.

Thus the image of the organization in the customers mind regarding its

offerings becomes the reality related to its products and services offered.

IMAGE

COMMUNICATIONINFORMATION

HOW TO ACHIEVE CUSTOMER SATISFACTION?

CAN 100% CUSTOMER SATISFACTION BE ACHIEVED?

It is not possible to achieve 100% customer

satisfaction ever. Reason being simple that every

time the organization tries to meet the customers’

expectation, the level of expectation increases

next time thus there is always some gap between

the two. The organization can at least try to

always keep on meeting or staying close to

customer expectations so that the gap between

the service expected and actually delivered

doesn’t increases leading to dissatisfaction

IS CUSTOMER SATISFACTION MEASUREMENT STATIC?

As discussed earlier that there is always some between what is expected

and what is actually delivered, thus customer satisfaction measurement process

is dynamic and not static, thus it should be practiced on a continuous basis for

future improvements.

WHOSE RESPONSIBILTY IS TO MEASURE AND MANAGE CUSTOMER

SATISFACTION?

It’s the responsibility of the management to take the initiative and measure

the customer satisfaction but it is the responsibility of the whole organization to

manage and improve.

A naïve view of business might suggest that profit is the appropriate goal of

an organization, which is a very shortsighted view. From a practical viewpoint,

the primary goal of an organization has to be customer retention. Only with a

steady base of customers can an organization hope to make a profit. And only by

first satisfying customers can a business ever hope to retain its current

customers.

COMPLAINTS AND CUSTOMER SATISFACTION:

Frequently businesses operate on the principle that if things go wrong, they

will hear about it from their customers. Countless investigations document the

fallacy of relying on customer complaints. In the first place, 50% of customers

who experience a problem never complain to anyone! Of the

remaining half, most (45%) complain only to frontline personnel who either fail to

escalate the problem up to management and/or mishandle solving the problem.

Only 5%(one unhappy customers in 20) of all customers who have a problem

actually voice it to management. So, complaints are an inefficient method with

which to monitor customer satisfaction.

INEFFICIENT METHOD OF CUSTOMER SATISFACTION

COMPLAINING TO

EFFICIENT METHOD OF CUSTOMER SATISFACTION

Thus the organization

should take the initiative to

reach out to its customers for

the valuable feedback related to its

products and services offered. The

feedback given should be

analyzed thoroughly to measure

customer satisfaction; this process

should be repeated after a pre

CUSTOMERS ORGANIZATION

decided gap of time frame not only to measure but also to improve customer

satisfaction in long run.

WHAT IS THE ULTIMATE GOAL?

The ultimate goal of any organization should be to position itself as a better

product and service offering organization through continuous measurement and

management of customer satisfaction.

Best can be always be made

better….

SAMPLING DESIGN

SAMPLING DESIGN

Relevant population:

Study mainly focused on the customers who visit and transact at retail

branch banks. Database of 8000 + customer were already there with the HDFC

BANK (SION branch). Because of geographical, time and money constraint,

method of Simple Random Sampling was incorporated to select the samples

from Jalandhar. Because of this process, each element of the target population

has an equal chance of being selected into the sample.

Parameters of Interest:

Population proportion is the parameter of interest where the proportion

satisfied with the products and services rendered by the HDFC BANK was

investigated. Sample statistic is the sample proportion, which estimated the

required population proportion.

Sampling frame:

The division thus providing the sampling frame prepared list of all the

customers going for RETAIL BANKING.

Type of sample:

With the target population being known and having the time, money and

geographical constraints, the probability random sampling method was adopted.

With this sample design, we made probability-based confidence estimates of the

population proportion of interest. The selection followed an appropriate

procedure in which there is no chance for the interviewers or others to modify the

selection made.

Sample size:

As the population Standard Deviation is not known and we intended to

follow Normal Distribution curve while testing Hypothesis, a sample of 15

respondents was selected at random to obtain the sample proportions. Pilot

survey was conducted and the responses through the questionnaire were

registered and the sample proportions were determined.

These sample proportions were used along with the Confidence level of

80% and +5% allowable errors in the sample size estimation to arrive at the main

sample size of 57.

Data source:

Our primary data comes from an opinion-based survey, which was then

conducted across the entire Jalandhar with the sample size of 57 respondents

drawn, random. Our secondary data was scanned from various books,

magazines, Internet etc. The final model has been built by synergizing data from

the above two sources.

PRIMARY RESEARCH(OPINION SURVEY)

SECONDARY RESEARCH(INFORMATION SCANNING)

DATA SOURCE

FINDINGS

RECOMMENDATIONS

RESEARCH DESIGN

RESEARCH DESIGN

EXPLORATION:

Purpose of the study:

The research design is of Descriptive type which is designed to describe

the proportion characteristic of the population wherein the questions related to

the satisfaction level of the customers were incorporated in the instrument and

are tried to answer the queries regarding same.

Who recommends the product?

What is the reason to go for HDFC BANK ?

Since when the person is rendering the service

from HDFC BANK?

From where one got the influence to go for

HDFC BANK?

How the HDFC BANK services are perceived by

the

Customer itself?

Qualitative:

Factors important for customers in a bank were studied and depending

upon them the questionnaire was prepared.

See the Appendix (Part-3)

Instrument:

The instrument used for the research is the questionnaire, which was

prepared after a thorough knowledge of various aspects of customer satisfaction

process. The instrument when it was drafted for the first time for the pilot survey

was informative enough to gather the required information requiring some

Amendments. Because of this, required revision of the instrument was done after

which the main was derived and the final revised questionnaire was administered

on the same.

Questionnaire Design:

The questionnaire contained the questions that help to dive deep in the

customer satisfaction level of customer in a bank. Recommendation of the HDFC

BANK services to others, rating experience at HDFC BANK, feedback on

maintenance charges handling of complaint calls, response time, and knowledge

of the personal bankers

Repeat calls encountered etc., were some of the issues which were probed with

the help of the instrument.

Study’s Variables:

The study was mainly focused on the proportion of the population which

was satisfied with the products and services rendered by HDFC BANK. For this,

the pilot testing (survey) was conducted with a sample size of 15 in various parts

of Jalandhar. Through this, sample proportions were analyzed and were used to

derive the main sample size for conducting the survey. The sample proportions

now obtained were used to test the hypothesis related to the population

proportion and was used to estimate the required population proportion.

(See Appendix Part-2)

DATA COLLECTION:

Location:

Jalandhar was selected as area for conducting the sample survey to gather

the opinion knowledge of the respondents.

Data collection time:

The instruments were administered from third week of May to third week of

Feb. 2004 to collect the response. It took around 2 weeks of time to gather all the

relevant information.

Field instructions:

The field instruction of “asking the right respondent to give the response”

was decided. This is because at times, the respondents were not there in the

bank. Customer generally comes in the post afternoon time just to use the ATM,

whereas the retail customer of particular branch comes early in the morning.

Relevance of secondary data:

The relevant secondary data was gathered from the authenticated websites

only. Also very well accepted business magazines and journals were referred to

collect the information required for the project.

(See Bibliography)

TIME PLANNING:

For this project, we had planned out the entire research in terms of

timelines. The work of survey design and data collection was planned and carried

out in a highly systematic manner.

STEPS January Feb Feb March

WEEKS

1-2 3-4 1-2 3-4 1-2PLANNING

SURVEY DESIGNPILOT RUN

SURVEY CONDUCTSECONDARY DATAANALYSIS

PROJECT FINALIZATION

DATA ANALYSIS;

Data handling:

The collected data was handled carefully in the form of filled-up

questionnaires. The response was then transferred manually to a paper-spread

sheet.

Preliminary analysis:

Preliminary analysis of the pilot survey was done to find out the sample

proportion. This was done with the help of SPSS package and then with this the

final sample size to conduct the survey for collecting secondary data was

calculated.

The response from the survey was then analyzed again to get the final

sample proportion.

Statistical tests:

Hypothesis testing was done to estimate the population proportion through

the sample proportion. For details see appendix (part – 2).

Software’s used for the analysis:

SPSS package was extensively used to analyze the primary data and also

MS-Excel Package was used whenever required for smaller calculations.

Data presentation:

The collected data is presented in the form of Bar graphs, Pie chart and

tables according to the requirement of the project.

RESEARCH FINDINGS

RESEARCH FINDINGS

CUSTOMERS:

RATING OF HDFC BANK SERVICES

CUSTOMERS were asked to rate the HDFC BANK services in ratings like

– Excellent, Good and Fair. Following Pie shows the response given:

RATING OF HDFC BANK SERVICES

66

26.47.6

0

20

40

60

80

1

rating

%

Excellent

Good

fair

From the above Pie diagram, it is clear that 66% CUSTOMERS rate the

HDFC BANK SERVICES as Excellent, 26.4% rate them as Good and rest of

them say that HDFC BANK SERVICES are Fair.

HANDLING OF COMPLAINT CALLS

Customers were asked about the way the complaint calls are handled by

the company. Following Pie shows the response in categories like Good, Fair

and Poor:

HANDLING OF COMPLAINT CALLS

77.2

21.91

020406080

100

1

RATING

%

Good

Fair

poor

From the Pie, it is clear that 77.2% customers say that the handling of

complaint calls by the company is Good i.e.; they are assured of the quick

service in the least possible time.21.9% customers say that the way the

complaint calls are handled is Fair and the rest 1% say that it is Poor.

RESPONSE TIME

Customers were asked to give the feedback regarding the response time.

Following Pie shows the same in categories like Soon and Late:

RESPONSE TIME

95.9

4.10

50

100

150

1

RATING

%

Soon

late

From the Pie, it is clear that the 95.9% customers say that the response

after the complaint calls are registered is Soon whereas the remaining 4.1% say

that the response is Late.

TURN AROUND TIME

Customers were asked about the turn around time required by the personal

banker. Following responses were given in categories like More, Moderate and

less:

TURN AROUND TIME

78

20.31.6

020406080

100

1

RATING

%

Less

Moderate

More

From the Pie, it is clear that 78% customers say that the time required by

the personal banker is less while 20.3% say that the time required is moderate,

whereas remaining 1.6% customers give the feedback that the time required is

more

.

KNOWLEDGE OF PB (PERSONAL BANKER)

Customers were asked to give the feedback regarding the knowledge of the

PB in categories like Good and Fair. The customers used their own judgment

about the capability of the service fellow depending upon his accuracy and

speed.

KNOWLEDGE OF PERSONAL BANKER

0

50

100

1

RATING

%

Good

Fair

From the Pie, it is clear that 92.6% customers say that the knowledge of the

PB is Good whereas remaining 7.3% of them feel that its Fair.

THROUGH WITH WORK IN THE SAME VISIT

Customers were asked if they were able to get their work done in the same

visit. Following Pie shows the response given in categories like yes and No:

TROUGH WITH WORK IN 1 VISIT

96

40

50

100

150

1

RATING

%

1 Visit

more than 1 Visit

96% customers said that the machine is restored in the same visit, while

remaining 4% of them said at times two visits at maximum are required by the

service engineer to restore the machine.

SERVICE EXPECTED AND SERVICE DELIVERED

Customers were asked about the gap if it is there between the services

expected and service delivered. Following Pie shows the response given in the

categories of Yes and No:

IS THERE GAP IN SERVICE EXPECTED AND SERVICE

DELIVERED

91.8

8.80

50100

1

RATING

%

No

Yes

From the Pie, it is clear that 91.8% customers said that there is no gap

between what the service they expected from the company and what they have

been delivered, while 8.1% customers feel that there is difference between the

two, reasons separately noted down.

RECOMMENDING THE HDFC BANK SERVICES

When the respondent was asked whether he/she would like to recommend

the HDFC BANK SERVICES to others, following response was given:

WILL YOU RECOMMEND HDFC BANK SERVICES

80.2

2.616.6

0

50

100

1

RATING

% Yes

No

can't say

80.8%( majority) customers said that they recommend the HDFC BANK

SERVICES to others which is a very good response in company’s favor, 2.6%

customers said that they would not be recommending the company’s offering to

others whereas 16.5% customers were not in a position to decide whether they

would or wouldn’t recommend. Here is a scope for the company to turn this last

segment of the respondents to product recommending customer segment.

EXPERIENCE WITH HDFC BANK

When the customers were asked to rate their experience of banking HDFC

BANK SERVICES in the categories of Excellent, Good, Fair and Poor, following

feedback was obtained:

EXPERIENCE WITH HDFC BANK

81

11 50

20406080

100

1

RATING

%

Excellent

Good

fair

poor

5% customers said that their experience at HDFC BANK SERVICES was

fair whereas 81% of them said that the experience was excellent. Only few

(approximately 1%) customers gave the feedback that their product banking

experience with the company was poor and around 2% customers were not in

position to rate their experience of banking HDFC BANK SERVICES. Majority of

the customers (11%) said that their experience was good.

CUSTOMERS ON MAINTENANCE CHARGES

The customers gave feedback related to the maintenance charges, which

was categorized into High, Moderate and Low. Following Pie chart shows the

response:

24.2

67.8

4.39 3

01020304050607080

1

High

moderate

low

can't say

From the Pie chart, it is clear that 24.2% customers said that the

maintenance charges charged by the company is high while 4.39% customers

gave the response related to the maintenance charges in the “Low”

category.67.8% of the customers said that the maintenance charges is moderate

and the

Remaining customers (3.5%) were not sure about the nature of maintenance

charges as to whether it was low, moderate or high.

RESEARCH ANALYSIS

RESEARCH ANALYSIS

Research analysis is shown with the help of cross-tabulation.

Recommending the product Vs. Experience at HDFC BANK BRANCH

Maintenance Charges Vs. Value for money prices

Maintenance Charges Vs. Recommending the services

Recommending the services Vs. Improvements recommended by

customer

The next four cross-tabulations are made depending upon service satisfaction.

Overall satisfaction Vs. Rating the services

Overall satisfaction Vs. Improvements given by the customers

Rating of services Vs. Improvements given by the customers

CUSTOMER LOYALTY INDEX

CUSTOMER SATISFACTION

MEASUREMENT

Customer loyalty index is obtained by three major factors:

Intention to stick to the same brand

Willingness to recommend to others the brand

Overall satisfaction with the brand

Any of the above variables in isolation does not necessarily indicate loyal

customer. But above tree components together form a derived construct

“customer loyalty”

OVERALL SATISFACTION

PRO BABILITY

OF RECOMMENDING PROBABILITY OF NOT SHIFTING

Secured customers = 55 x 100 / 118 = 46.61%

ROAD AHEAD………

THE ROAD AHEAD . . .

Is the satisfied customer asset to the company? No, he is not. This can be

better explained from a model given below

Top rung

Middle rung

Lowest rung

A

customer is called a loyal customer when

he proactively recommends the company or the brand to others.

A customer is merely satisfied or very satisfied is on lowest rung of

customer service ladder. There is no assurance that a customer who is satisfied

will return again for availing services, but there is full assurance that a customer

who is loyal will return for availing services. Today 76% of customers of HDFC

bank. are loyal to it; other 84% are satisfied or very satisfied. This indicates that

these 84% of customers may be taking the offering of this company due to

various uncontrollable reasons. There is a major threat for HDFC BANK when

the uncontrollable reasons will become controllable.

In the future, HDFC BANK should try to convert its satisfied customers to

loyal customers.

Tells? Refers? Buys

again?

Tells

everyone

about you

Refers

everyone

proactively

Always,

returns to

buy

Tells a

few

people

Refers a

few

people

Sometimes

returns

May tell

someone,

if asked

If asked,

may refer

If

convenient,

may buy

CONCLUSIONS

CONCLUSIONS

One of the basic in successful organization has been the mindset of not

standing still, not resting on past laurels, but pushing harder and harder for

profitability and growth. This seems to be true with HDFC BANK., one of the fast

growing companies in India.

Even though most of the HDFC BANK customers are getting good service,

company has to rejuvenate the existing facilities to make a foot hold in banking

segment. We are optimistic that the company will be able to continue its

presence in this segment in the years to come.

We are sure that the experience we gained by undertaking this study will

help us a lot in our future career. My sincere thanks to all the HDFC BANK

personnel’s who have helped us to complete this study successfully.

APPENDIX

Part I : TERMS USED IN THE RESEARCH PROJECT

APPENDICES

TARGET POPULATION

Relevant collection of elements about which we wish to make some

inferences

PILOT TESTING

It is small-scale test of what the survey is to be, including all the activities

that will go into the final survey. It helps in deciding upon the size of the original

sample for the main survey

NORMAL DISTRIBUTION

A distribution of a continuous random variable with a single-peaked bell

shaped curve. The mean lies at the center of the distribution, and the curve is

symmetrical around a vertical line erected at the mean. The two tails extend

indefinitely never touching the horizontal axis

STANDARD DEVIATION

The positive square root of the variance; a measure of dispersion in the

same units as the original data, rather than in the squared units of variance

VARIANCE

A measure of the average distance between the mean and each item in the

population

NUMBER OF STANDARD DEVIATIONS – Z

For any given area under the Normal curve, the number of standard

deviations can be known from the table of areas under the normal probability

distribution between the mean and positive value of Z

CONFIDENCE LEVEL

The probability that statistician’s associate with an interval estimate of a

population parameter, indicating how confident they are that interval estimate will

include the population parameter

SAMPLE PROPORTION

Sample proportion is equal to the elements in the sample belonging to the

category of interest, divided by the total number of elements in the sample.

These are represented by “p and q”

SIZE OF THE SAMPLING ERROR – E

No sample will fully represent its population in all respect. The numerical

descriptors that describe samples may be expected to differ from those that

describe population because of random fluctuations inherent in the sampling

process. This is called “Sampling Error” and reflects the influence of chance in

drawing the sample members

HYPOTHESIS

An assumption or speculation we make about a population parameter

NULL HYPOTHESIS – H0

The hypothesis, or assumption about a population parameter we wish to

test, usually an assumption of the status quo

ALTERNATIVE HYPOTHESIS – H1

Whenever we reject the hypothesis, the conclusion we do accept is called

the alternative hypothesis

LEVEL OF SIGNIFICANCE

A value indicating the percentage of sample values that is outside certain

limits, assuming the null hypothesis is correct, that is, the probability of rejecting

the null hypothesis when it is true

POPULATION PROPORTIONS

Population proportion is equal to the elements in the population belonging

to the category of interest, divided by the total number of elements in the

population

STANDARD ERROR OF PROPORTION – S.E.P

It is the square root of ratio of service of population proportions to the

sample size.

POPULATION PARAMETER

Population parameter are summary descriptors (e.g., incidence, mean,

variance, proportion etc.)Of variables of interest in the population

SAMPLE STATISTICS

Sample statistics are descriptors of the relevant variables computed from

the samples data. They are the estimators of population parameters

SAMPLING FRAME

It is the list of elements from which the sample is actually drawn. Ideally ,it

is a complete and correct list of population members only

Part II: STATISTICAL ANALYSIS

SAMPLE SIZE CALCULATION

Sample size (n)=Z 2 x (pq)

(E2)

Here we take the confidence level as 65%. Corresponding to this

confidence level, we get Z=0.927 from the Normal Distribution table

From the pilot survey,

p=0.8

p=sample proportion who are satisfied with services

Thus,

q=(1-p)=1-0.8=0.2

Taking the size of the sampling error as 0.05 (or 5%)

n = 0.927 x 0.927 x 0.8 x 0.2

0.05 x 0.05

= 54.16 approximately 57

Thus the sample size of 57 was decided

Part III: QUESTIONNAIRE

QUESTIONNAIRE FOR CUSTOMER:

Please tick any one

1. How would you rate HDFC BANK services?

Excellent Good Fair Poor

2. Please tick any one:

(a) Handling of complaint calls

Good Fair Poor

(b) Response time

Soon Late

(c) Turn around time

More Moderate Less

(d) You through your work in single visit? Yes No

(e) Knowledge of the personal banker ?

Good Fair

3. Do you find any gap between the services expected and services delivered?

Yes No

If yes, then why? _________________________________________________

4. What is the overall level of satisfaction with HDFC bank services?

Very high High Moderate Low

5. Improvements and suggestions________________________________________________________________________________________________________________________________

EXTRA DETAILS:

QUESTIONNAIRE FOR CUSTOMER:

1.Are you aware of the HDFC BANK Services?

Yes No

2. Which one of the following factors influences you most while taking the

decision?

(Please tick the appropriate box as per your preference)

A. Price

B. service / Maintenance cost

3. Would you recommend BANKING with of HDFC BANK?

Yes No

4. How do rate the experience with HDFC BANK service from the HDFC bank

employee?

Excellent Good Fair Poor

If poor, why? _____________________________________________________

5. How do you rate the submission of:

Service support Prompt Delayed

6. How do you rate the Maintenance cost charged by our company?

High Moderate Low

7. Improvements and suggestions:

BIBLIOGRAPHY

BIBLIOGRAPHY

Journals:

NMIMS management review (July – Dec 1998, Volume 10, no 2)

Book:

Marketing Research - Alvin C.Burns & Ronald F.Bush

Statistics for Management - Richard I.Levin & David S.Rubin

Improving your measurement of customer satisfaction - Terry G. Vavra

Customer Satisfaction is worthless Customer loyalty is priceless – Jeffrey

Gitomer

SPSS for beginners – Vijay Gupta

Consumer Behavior – Schiff Man

Building Strong Brands – David Aaker

Market Research – An Applied Orientation – Naresh Malhotra.3rd edition

Marketing Research – A Practical Approach for the New Millennium –

Joseph Heir Jr.,Robert P,Bush and David J.Ortinar

Website:

www.marketingteacher.com

www.marketing-bulletin.massey.ac.nz

www.chass.ncsu.edu/garson/pa765/statnote.htm

www.marketingpower.com

www.ama.org