Research Term Paper Meghu

7/31/2019 Research Term Paper Meghu

1/23

Term Paper of Research

Methodology.

Submitted By:

1. Megha Tah (Roll No- 46)

Reg.No. 10905414

A COMPARATIVE STUDY ON THE STUDENTS PREFERENCE

ON THE DIFFERENT SERVICES PROVIDED BY DIFFERENT

BANKS IN LOVELY PROFESSIONAL UNIVERSITY.


2/23

Introduction

In an expanding and growing University like LPU where the number of students

keeps on increasing, banking services is of great importance to the students especially

for students coming from other cities of India and even from abroad. Currently there

are three renowned banks serving for the ease of the students inside LPUs campus.

They are Oriental Bank of Commerce (OBC), Punjab National Bank (PNB) and State

Bank of Patiala (SBP). With increasing number of students in LPU, these banks are also

trying to acquire the larger chunk of the market by providing the best services that a

bank can offer to students that suit their needs. Students have an option to choosewhich bank can give them a better service. The various Banking services include

Keeping money safe while also allowing withdrawals when needed, issuance of

checkbooks so that bills can be paid and other kinds of payments can be delivered by

post,

Provide educational loans (online facilities is now available), Issuance of credit cards

and processing of credit card transactions and billing, Issuance of ATM cards or debit

cards for use as a substitute for checks, allow financial transactions at branches or by

using Automatic Teller Machines (ATMs)Provide wire transfers of funds and Electronic fund transfers between banks, facilitation

of standing orders and direct debits so that payments for bills can be made

automatically, provide overdraft agreements for the temporary advancement of the

Bank's own money to meet monthly spending commitments of a customer in their

current account. Provide a check guaranteed by the Bank itself and prepaid by the

customer, such as a cashier's check or certified check. Mostly all the services provided

by the three banks in LPU are almost similar, so, what can give the bank an edge over

the other is the quality of services provided by them to the students.


3/23

Objective of the study:

To know the preference of students towards the banks in LPU.

To know the different factors which affect satisfaction level of students in LPU. To do comparative analysis of the different facility provided by banks in LPU.

Literature Review.

Faye x zhu, walterwymer jr,injazz chan(2002)suggest that perceived IT based services

affect perceived overall service dimension including reliability and assurance, whichaffect customer satisfaction and perceived service quality .the result also suggest that

customer evaluations of IT based services are affected by their experiences in using IT

based services and perceived IT policies. Husefin Arasli,salih turan katircioglu,salime

mehtap-smadi(2005)investigate the relationship between overall bank customer

satisfaction in the Turkish and revealed that the expectation of the bank customers in

both areas were not and the largest gap was found in the empathy dimension .the

assurance dimension had the largest influence on customer satisfaction and overall

satisfaction of bank Benjamin osayawe ehigie (2006) found that perception of servicesquality and satisfaction are significant predictors of customer loyalty with customer

satisfaction contributing more.Pooja malhotra ,balwinder Sing ( 2008) examined the

factors affecting the extent of interest banking services and revealed that among banks

that offer internet banking ,larger banks & banks that have offered the service for a

larger time of a wider range of services over the internet.


4/23

Research Methodology

Research Design

Our research is going to be a descriptive research because which will be used to gaininsight about the customer satisfaction of the various services provided by different

banks in LPU. It is also called statistical research. The main goal of this type of research

is to describe the data and characteristics about what is being studied. By this research

we can obtain information concerning the current status of the phenomenon to

describe what exist with respect to variables or condition in a situation.

Hypothesis formulation:

Null hypothesis(Ho)

There is no effect on the term of usage on the satisfaction and perception of students

towards the banks in LPU.

Alternate hypothesis(H1)

There is an effect of the term of usage on satisfaction and perception of students

towards the banks in LPU.

Source for Data collection:

Primary data: primary data is collected through questionnaire and through structured

questionnaire respondents were asked to provide belief rating for services offered by

various banks in lpu.

Secondary data: secondary data is collected through internet, magazine & Punjab

national bank, state bank of Patiala, oriental bank of commerce (lpu branch).

Sampling technique:

We will use convenience sampling technique. It is also called haphazard or accidental

sampling. Members of the population is chosen based on their relative ease of access.


5/23

Population: All the students of LPU using the banking services in LPU will be our

Target population.

Sample size: The sample size will be 100 respondents.

Sample element:- Each and every respondents will be the sample element.

Tools and techniques for data analysis:- Different mathematical tools like

SPSS and multiple regression will be used for the analysis of data.


6/23

DATA ANALYSIS

Factor Analysis of PNBTable 1:Communalities

a

Initial Extraction

Rating of PNB ATM 1.000 .434

Rating of PNB LOAN 1.000 .599

Rating of PNB EBANKING 1.000 .384

Rating of PNB

MoneyTransfer1.000 .550

Rating of PNB A/c Security 1.000 .494

Rating of Customer relation 1.000 .591

Rating Credit Card Facilities 1.000 .717

Rating PNB Infrastructure 1.000 .671

Rating PNB RECEPTION 1.000 .729

Rating PNB Management 1.000 .705

Rating PNB Customer

Handling1.000 .589

Extraction Method: Principal Component Analysis.

a. Only cases for which Suggestion to bank with = PNB

are used in the analysis phase.

Table 2. Total Variance Explaineda

Compon

ent

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Total

% of

Variance

Cumulative

% Total % of Variance

Cumulative

% Total

% of

Variance

Cumulative

%

1 3.572 32.469 32.469 3.572 32.469 32.469 2.608 23.707 23.707

2 1.635 14.861 47.331 1.635 14.861 47.331 2.037 18.521 42.228

3 1.255 11.408 58.738 1.255 11.408 58.738 1.816 16.510 58.738

4 .923 8.391 67.130


7/23

5 .887 8.060 75.190

6 .735 6.685 81.875

7 .528 4.804 86.679

8 .460 4.181 90.859

9 .367 3.337 94.197

10 .333 3.028 97.225

11 .305 2.775 100.000


a. Only cases for which Suggestion to bank with = PNB are used in the analysis phase.

Table 3. Component Matrixa,b

Component

1 2 3

Rating of PNB ATM .502 .389 -.176

Rating of PNB LOAN .621 .379 .264

Rating of PNB EBANKING .000 .582 -.213

Rating of PNB

MoneyTransfer.432 .534 -.280

Rating of PNB A/c Security .577 .190 -.354

Rating of Customer relation .651 .122 .389

Rating Credit Card Facilities .493 .278 .630

Rating PNB Infrastructure -.658 .451 -.186

Rating PNB RECEPTION -.703 .475 -.098

Rating PNB Management -.670 .248 .441

Rating PNB Customer

Handling-.610 .313 .344


a. 3 components extracted.

b. Only cases for which Suggestion to bank with = PNB are used in

the analysis phase.

Table 4. Rotated Component Matrixa,b


8/23

Component

1 2 3

Rating of PNB ATM -.192 .245 .581

Rating of PNB LOAN -.133 .655 .390

Rating of PNB EBANKING .274 -.023 .555

Rating of PNB MoneyTransfer -.090 .160 .718

Rating of PNB A/c Security -.426 .100 .550

Rating of Customer relation -.265 .707 .140

Rating Credit Card Facilities .025 .843 .073

Rating PNB Infrastructure .682 -.411 .189

Rating PNB RECEPTION .760 -.362 .144

Rating PNB Management .785 .022 -.297

Rating PNB Customer Handling .747 -.004 -.174


Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 7 iterations.

b. Only cases for which Suggestion to bank with = PNB are used in the

analysis phase.

Interpretation

From table 2 we notice that there are three factors that can be extracted from

the variables with an Eigen value more than 1. These three factors are the most

important combination of the variables whereby through factor analysis we are

able to retain approximately 60% of the information which gives a higher value.

Looking at the above table 4, the rotated factor matrix, column 1, we notice that

the variables PNB Reception, PNB Management, PNB Customer handling have the

loadings of 0.76, 0.785, 0.747 respectively on Factor 1. This means thatComponent 1 is a combination of these 3 variables. We can conclude that

component 1 can be named as Co-operative.

Moving to the next column of the rotated matrix we saw that the variables of

Customer relation and credit card facilities have the loadings of 0.707 and 0.843


9/23

respectively on component 2. Hence we can name this Component as

Believers.

As we move on to the third column, we notice that the variable PNB money

transfer has a higher loading of 0.718 so we can name this component as

Convenience.

Hence the factors are, Co-operative, Believers and convenience.

Factor Analysis of OBC

Table 5. Communalities

Initial Extraction

Rating Of OBC ATM 1.000 .718

Rating OBC LOAN 1.000 .742

Rating EBANKING 1.000 .574

Rating MONEY TRANSFER 1.000 .589

Rating A/c SECURITY 1.000 .650

Rating Customer Relation 1.000 .643

Rating Of C-card Facilities 1.000 .674

Rating OBC Infrastructure 1.000 .715

Rating OBC Reception 1.000 .755

Rating OBC Management 1.000 .733

Rating OBC Customer

Handling1.000 .611


a. Only cases for which Suggestion to bank with = PNB

are used in the analysis phase.


Component Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loading


10/23

Total

% of

Variance

Cumulative

% Total

% of

Variance Cumulative % Total % of Variance

Cumulat

%

1 2.011 18.283 18.283 2.011 18.283 18.283 1.687 15.337 15

2 1.737 15.790 34.073 1.737 15.790 34.073 1.570 14.271 29

3 1.430 12.996 47.069 1.430 12.996 47.069 1.517 13.795 43

4 1.207 10.972 58.041 1.207 10.972 58.041 1.333 12.121 55

5 1.019 9.264 67.305 1.019 9.264 67.305 1.296 11.781 67

6 .921 8.375 75.680

7 .813 7.389 83.069

8 .630 5.724 88.793

9 .512 4.651 93.444

10 .384 3.495 96.939

11 .337 3.061 100.000


a. Only cases for which Suggestion to bank with = PNB are used in the analysis phase.


Component

1 2 3 4 5

Rating Of OBC ATM .210 -.144 .520 -.518 -.337

Rating OBC LOAN .600 .366 -.281 -.391 -.129

Rating EBANKING .359 .232 .103 -.185 .589

Rating MONEY TRANSFER .337 -.231 .639 .101 .064

Rating A/c SECURITY .542 .095 .155 .134 -.553

Rating Customer Relation .520 -.309 -.209 .435 .209

Rating Of C-card Facilities .737 .128 .012 -.143 .307

Rating OBC INFRAstructure .127 .209 .476 .654 -.025

Rating OBC Reception -.438 .285 .595 -.212 .286

RAting OBC Management .085 .824 .035 .196 -.079

Rating OBC Customer

Handling-.205 .741 -.104 .050 -.076




11/23


Component

1 2 3 4 5

Rating Of OBC ATM .210 -.144 .520 -.518 -.337

Rating OBC LOAN .600 .366 -.281 -.391 -.129

Rating EBANKING .359 .232 .103 -.185 .589

Rating MONEY TRANSFER .337 -.231 .639 .101 .064

Rating A/c SECURITY .542 .095 .155 .134 -.553

Rating Customer Relation .520 -.309 -.209 .435 .209

Rating Of C-card Facilities .737 .128 .012 -.143 .307

Rating OBC INFRAstructure .127 .209 .476 .654 -.025

Rating OBC Reception -.438 .285 .595 -.212 .286

RAting OBC Management .085 .824 .035 .196 -.079

Rating OBC Customer

Handling-.205 .741 -.104 .050 -.076


b. Only cases for which Suggestion to bank with = PNB are used in the analysis phase.


Component

1 2 3 4 5

Rating Of OBC ATM -.190 -.187 .049 -.011 .803

Rating OBC LOAN .343 .369 .492 -.353 .348

Rating EBANKING .037 -.174 .731 .033 -.085

Rating MONEY TRANSFER -.313 -.091 .217 .559 .350

Rating A/c SECURITY .195 .496 -.003 .280 .537

Rating Customer Relation -.290 .568 .293 .286 -.264

Rating Of C-card Facilities .003 .254 .762 .063 .155

Rating OBC INFRAstructure .221 .024 -.036 .814 -.037

Rating OBC Reception .129 -.838 .039 .168 .073

RAting OBC Management .823 -.014 .141 .187 -.011


12/23

Rating OBC Customer

Handling.754 -.155 -.039 -.067 -.110




b. Only cases for which Suggestion to bank with = PNB are used in the analysis phase.

Interpretation From table 6 we notice that there are five factors that can be extracted from the

variables with an Eigen value more than 1. These five factors are the most

important combination of the variables whereby through factor analysis we areable to retain approximately 70% of the information which gives a higher value.

Looking at table 8 in component 1, variables Management and customer handling

have a higher loading, of 0.823 and 0.754 respectively. So we can say that this

factor can be named as Customer Management.

In Component 3 we see that the variable credit card facilities has a loading of

0.762 and we can named this as Swift Credit-card.

In component 4, the variable infrastructure has a loading of 0.814, so well name

this as Good Looks.

In component 5, the variable ATM has a loading of 0.803, so it can be named as

Automative.

Hence the factors are Customer management, Swift credit card, Good looks, and

Automotive.

Factor Analysis of SBP

Table 9. Communalitiesa

Initial Extraction


13/23

Rating Of SPB ATM 1.000 .784

Rating SPB LOAN 1.000 .590

Rating SBP EBANKING 1.000 .665

Rating SBP MONEY

TRANSFER 1.000 .813

Rating SBP A/c SECURITY 1.000 .622

Rating SBP Customer

Relation1.000 .676

Rating Of SBP C-card

Facilities1.000 .829

Rating SBP Infrastructure 1.000 .729

Rating SBP Reception 1.000 .793

Rating SBP Management 1.000 .628

Rating SBP Customer

Handling1.000 .738


a. Only cases for which Rank THE BEST = PNB are

used in the analysis phase.


Compon

ent

Initial Eigenvalues

Extraction Sums of Squared

Loadings Rotation Sums of Squared Loadings

Total

% of

Variance

Cumulative

% Total

% of

Variance

Cumulative

% Total

% of

Variance Cumulative %

1 2.395 21.775 21.775 2.395 21.775 21.775 2.065 18.771 18.771

2 1.737 15.794 37.568 1.737 15.794 37.568 1.563 14.213 32.985

3 1.441 13.102 50.670 1.441 13.102 50.670 1.505 13.680 46.665

4 1.292 11.745 62.415 1.292 11.745 62.415 1.395 12.684 59.349

5 1.000 9.092 71.507 1.000 9.092 71.507 1.337 12.159 71.507

6 .822 7.476 78.983

7 .659 5.995 84.978

8 .502 4.567 89.545

9 .411 3.734 93.279


14/23

10 .388 3.530 96.809

11 .351 3.191 100.000


Component

1 2 3 4 5

Rating Of SPB ATM -.330 -.225 -.473 .346 .530

Rating SPB LOAN -.173 -.451 .531 -.166 .215

Rating SBP EBANKING -.369 -.092 .383 .438 .426

Rating SBP MONEY

TRANSFER-.283 .370 .475 .538 -.284

Rating SBP A/c SECURITY -.162 .556 -.249 .468 -.076

Rating SBP Customer

Relation-.580 .547 -.109 -.137 -.104


Facilities-.084 .623 -.249 -.451 .411

Rating SBP Infrastructure .676 .355 .353 -.142 -.002

Rating SBP Reception .426 .460 .438 .031 .455

Rating SBP Management .662 -.032 -.222 .369 -.054

Rating SBP Customer

Handling.770 -.049 -.249 .255 .123



b. Only cases for which Rank THE BEST = PNB are used in the analysis phase.


Component

1 2 3 4 5

Rating Of SPB ATM .044 .111 -.159 -.113 .855

Rating SPB LOAN -.181 -.729 .040 .127 .086


15/23

Rating SBP EBANKING -.140 -.252 .173 .514 .536

Rating SBP MONEY

TRANSFER-.174 .206 .066 .851 -.102

Rating SBP A/c SECURITY -.033 .702 .060 .315 .159

Rating SBP Customer

Relation-.677 .461 .009 .067 .006


Facilities-.420 .384 .524 -.472 .085

Rating SBP Infrastructure .313 -.014 .609 -.003 -.510

Rating SBP Reception .141 -.032 .866 .133 -.058

Rating SBP Management .761 .204 .062 -.012 -.065

Rating SBP Customer

Handling.804 .134 .201 -.181 -.013




b. Only cases for which Rank THE BEST = PNB are used in the analysis phase.

Interpretation:

From table 10, we notice that there are five factors that can be extracted from

the variables with an Eigen value more than 1. These five factors are the most

important combination of the variables whereby through factor analysis we are

able to retain approximately 71% of the information which gives a higher value.

From the above table 12, Rotated component matrix we saw that in column 1 the

first factor extracted 2 variables i.e. Management and customer handling with a

loading of 0.761 and 0.804 respectively. We can name this factor as Managing

Customer.

Moving towards the column 2 of table 12, the variable account security with a

loading of 0.702 is selected and we named this variable as secure.

The next column having a loading of 0.866 is Reception and we will name this

factor as Openness.

Moving on to the 4th column, the variable Money Transfer with a loading of 0.851

is being selected and well name this variable as Swift.


16/23

Another Factor to be considered from the last column is ATM with a loading of

0.855. This factor well named it as Reliable.

Hence the factors are Managing Customer, Openness, Swift and Reliable.

ANOVA

PNB

Sum of

Squares df

Mean

Square F Sig.

Between

Groups 56.991 3 18.997 .761 .521

Within

Groups1373.144 55 24.966

Total 1430.136 58

Interpretation:-

Since from table we can see that at confidence level 95%, the significance

level computed is 0.521, which is very greater than the threshold valve of

0.05. Therefore the Null hypothesis is accepted ie. The duration of use of

bank services do not affect the students perception towards PNB bank.

ANOVAOBC

Sum of

Squares df

Mean

Square F Sig.


17/23

Between

Groups157.845 3 52.615 3.949 .013

Within

Groups 732.833 55 13.324

Total 890.678 58

Interpretation:-


level computed is 0.013, which is less than the threshold valve of 0.05.Therefore the Null hypothesis is rejected ie. The duration of use of bank

services affect the students perception towards OBC bank.

ANOVA

SBP

Sum of

Squares df

Mean

Square F Sig.

Between

Groups60.505 3 20.168 1.700 .178

Within

Groups652.444 55 11.863

Total 712.949 58

Interpretation:-


18/23


level computed is 0.178, which is more than the threshold value of 0.05.

Therefore the Null hypothesis is accepted i.e. the duration of use of bank

services do not affect the students perception towards SBP bank.

Combined AnovaANOVA

percp

Sum of

Squares df

Mean

Square F Sig.

Between

Groups652.814 3 217.605 2.356 .082

Within

Groups5080.711 55 92.377

Total 5733.525 58

Interpretation:-


level computed is 0.082, which is greater than the threshold valve of 0.05.

Therefore the Null hypothesis is accepted i.e. the duration for the use of bank

services do not affect the students perception towards banks.


19/23

Findings.

Using Factor Analysis for PNB we are able to extract six important variables out of

thirteen variables and combine it into three main factors namely, Co-operative,Believers and Convenience.

From Factor analysis for OBC we are able to extract six important variables out of

thirteen variables and combine it into factors namely Customer management,

Swift credit card, Good looks, and Automotive.

From Factor analysis for SBP we have extracted from sixteen variables into these

factors namely Customer management, Swift credit card, Good looks, and

Automotive.

Using anova the Null hypothesis is accepted i.e. the duration for the use of bankservices do not affect the students perception towards banks.

Suggestion to Improve Banking Services in LPU. ATM Facilities should be improve by providing more ATMs in campus.

Improve customer relation.

Provide awareness of E-Banking facilities and usage.

Improve the infrastructure of banks.

Number of employees in banks should be more.

Banking Timing should be extended.

Banks should be more spacious.

Evening branch should be there. Banks should improve customer handling skills.


20/23

References

Armstrong, Robert W.(2000), Corporate-Customer satisfaction in the banking industry

of Singapore- International Journal of Bank Marketing, 18, page79-111.

Osayawe Ehigie, Benjamin(2006), Correlates of customer loyalty to their bank: a case

study in Nigeria.-International journal of bank marketing, 24, page 494-508.

Arasli,Huseyin (2005),A comparison of service quality in the banking industry,

international journal of bank marketing, 23, 508-526.

Malhotra, Pooja (2008), An analysis of internet banking offerings and its determinants

in India, Internet Research, 20, 87-106.

Zhu , Faye X.(2002), IT-based services and service Quality in Consumer banking,Internet Research 13, 69-90.

Annexture

Questionnaire

Dear Students

We are the students of lovely professional university ,MBA-2nd

sem are conducting a customer satisfaction survey on

various services provided by banks in LPU .we kindly request you to fill the questionnaire and provide us necessary

information regarding the above .This is purely on academic activity and data collected will not be shared with anybody for

any purpose.


21/23

Thank you.

Name:-

Age:-

Gender: M F

Q1. Do you have a bank account in any of the banks in LPU?

A) Yes B) No

If your answer is no then move to Q.8

Q.2How long you are using banking services?

A) Less than 1 year.

B) 1-2 year

C) 2-4 year

D) More than 4 year

Q.3 You generally go to bank for

a) Cash transactions

b) Loan facility

c) Exchange money

D) ATM facility

E) Any other, please specify.

Q.4.Currently, which banking services are you using?..

Q.5. Rate the following services provided by banks on the scale of 1-5.

1.-very poor 2.poor 3. Fair 4.good 5.very good

Parameters/Banks PNB OBC SBP

ATM Services

Loan Facilities

E-Banking

Money Transfer


22/23

Account Security

Customer Relation

Credit Card Facilities

Q.6 Rate the following attributes of the bank according to your preference.

Bank Attributes Good Fair Poor v.poor

OBC

Infrastructure

Reception

Management

Customer Handling

PNB

Infrastructure

Reception

Management

Customer Handling

SBP

Infrastructure

Reception

Management

Customer Handling

Q.7.Tick at the appropriate bank according to your preference:-

OBC PNB SBP

Unable to handle crowd

Slow operation

Non-cooperative

Q.8.If you are asked to suggest someone to open an account in one of the banks in LPU, which one will you suggest?

A) PNB

B) OBC

C) SBP

Q9.Rank the following banks in LPU according to your preferences (on a scale from 1 to 3)

Bank Rank

OBC

PNB

SBP


23/23

Q.10.Out of these three banks which one you consider is best and most preferred?

A) PNB

B) OBC

C) SBP

Q11. Suggest in your own way to improve the service of banks in LPU.

.

Documents

Research Term Paper Meghu