market research of brm

7/28/2019 Market Research of Brm

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MARKET RESEARCH

ON

CUSTOMER SATISFACTION

AT

State bank of india

Presented By:

Piyush Chitlangia - 13098

Abhinav Adarsh - 13002

Satyam Jaiswal -


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Gulshan Asatkar -

Vicky Srivastava - 13194

ACKNOWLEDGEMENT

At outset, we would like to thank the institutions for having provided us with an

opportunity to carry out a project of this magnitude that helped me satisfy my

curiosity as far as my area of interest was concerned.

We would also like to thank our professor Mr Jay Singh for their guidance and

constant support during the project duration.

We would also like to thank all the respondent without whom this research and

analysis would not be possible and no fruitful result would have achieved.


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Executive Summary :

The origin of the State Bank of India goes back to the first decade of the

nineteenth century with the establishment of the Bank of Calcutta in Calcutta on

2 June 1806. Three years later the bank received its charter and was re-designed

as the Bank of Bengal (2 January 1809). A unique institution, it was the first

joint-stock bank of British India sponsored by the Government of Bengal. The

Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843)

followed the Bank of Bengal. These three banks remained at the apex of modern

banking in India till their amalgamation as the Imperial Bank of India on 27

January 1921. Primarily Anglo-Indian creations, the three presidency banks

came into existence either as a result of the compulsions of imperial finance or

by the felt needs of local European commerce and were not imposed from

outside in an arbitrary manner to modernise India's economy. Their evolution

was, however, shaped by ideas culled from similar developments in Europe and

England, and was influenced by changes occurring in the structure of both the

local trading environment and those in the relations of the Indian economy to

the economy of Europe and the global economic framework.

Establishment The establishment of the Bank of Bengal marked the advent of

limited liability, joint-stock banking in India. So was the associated innovation

in banking, viz. the decision to allow the Bank of Bengal to issue notes, which

would be accepted for payment of public revenues within a restricted


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geographical area. This right of note issue was very valuable not only for the

Bank of Bengal but also its two siblings, the Banks of Bombay and Madras. It

meant an accretion to the capital of the banks, a capital on which the proprietors

did not have to pay any interest. The concept of deposit banking was also an

innovation because the practice of accepting money for safekeeping (and in

some cases, even investment on behalf of the clients) by the indigenous bankers

had not spread as a general habit in most parts of India. But, for a long time, and

especially up to the time that the three presidency banks had a right of note

issue, bank notes and government balances made up the bulk of the invertible

resources of the banks. The three banks were governed by royal charters, which

were revised from time to time. Each charter provided for a share capital, four-

fifth of which were privately subscribed and the rest owned by the provincial

government. The members of the board of directors, which managed the affairs

of each bank, were mostly proprietary directors representing the large European

managing agency houses in India. The rest were government nominees,

invariably civil servants, one of whom was elected as the president of the board.

Business The business of the banks was initially confined to discounting of bills

of exchange or other negotiable private securities, keeping cash accounts and

receiving deposits and issuing and circulating cash notes. Loans were restricted

to Rs.one lakh and the period of accommodation confined to three months only.The security for such loans was public securities, commonly called Company's

Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and

no interest could be charged beyond a rate of twelve per cent. Loans against

goods like opium, indigo, salt woollens, cotton, cotton piece goods, mule twist

and silk goods were also granted but such finance by way of cash credits gained

momentum only from the third decade of the nineteenth century. All

commodities, including tea, sugar and jute, which began to be financed later,


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were either pledged or hypothecated to the bank. Demand promissory notes

were signed by the borrower in favour of the guarantor, which was in turn

endorsed to the bank. Lending against shares of the banks or on the mortgage of

houses, land or other real property was, however, forbidden.

Indians were the principal borrowers against deposit of Company's paper, while

the business of discounts on private as well as salary bills was almost the

exclusive monopoly of individuals Europeans and their partnership firms. But

the main function of the three banks, as far as the government was concerned,

was to help the latter raise loans from time to time and also provide a degree of

stability to the prices of government securities.


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RESEARCH PROPOSAL

OBJECTIVE IDENTIFICATION

The core objective of our research will be to check the customer

satisfaction at State Bank Of India and also to give suggestions to

SBI which will help them to give more satisfaction level to their

customers. Our research will be coming under the Applied research.

PROBLEM IDENTIFICATION

The main issue or problem due to which we are conducting our

research is to check the satisfaction level of customer at SBI

SAMPLE SIZE:

The sample size for our research will be 30 respondents who have

account with SBI.

PROCEDURE :

It was decided to collect at least 30 questionnaires to well support to

come at reasonable conclusion therefore, 30 questionnaires were

floated among subjects using non-probability convenience samplingmethod. The respondents were asked to apprise about their feelings.


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BUILDING THEORITICAL MODEL

PRODUCTS

INTERNET BANKING CUSTOMER

BANK BRANCHES SATISFACTION

SERVICE

HYPOTHESIS :

In order to check the relationship between the independent and

dependent variables, four hypotheses were developed.

H0: SBI Products provide customer satisfaction.

H1 : SBI Products do not provide customer satisfaction.

H0 : Customers prefer Internet Banking

H1: Customers do not prefer Internet Banking

H0 : Customer visit Bank branches


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H1: Customer do not visit Bank branches

H1: Good service increases customer satisfaction

H2: Good service does not have any effect on customer satisfaction.

Measures

Questionnaire as an instrument will be used for this study which

contained brief description about the purpose and the significance ofthe study.


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Limititation :

The study limits to the students of ISB&M only which reduces the scope to

cover other regions in India.

Sample size is small and may not be able to show the true picture of

Population.

Some discrepancies may occur due to random sample undertaken

Respondents may not give their exact views or false information

Some confidential data may not be allowed to be used in this report

The responses of the customer were also influenced by the past experiences.


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RESPONDENT X1 X2 X3 X4 X5 X6 X7

1 3 5 5.5 3.3 5.5 6 2.5

2 3 3 4.6 4.3 4.6 4.5 4.3

3 4 1 3 3 3.3 4.6 3

4 3 4 4 4.3 4 3 3

5 0 1 3 4 4.3 3.5 4.16 1 2 4.3 3 4.3 4.7 3.8

7 2 3 4 3.6 3.6 4 3.8

8 1 2 2.6 3.3 4.3 4.3 2.3

9 3 1 2 3.3 3 4.5 3

10 3 3 4.3 3.3 4.6 4.7 3.1

11 4 4 3.6 3.6 3 3 3.3

12 5 2 3.6 2.3 4.3 3 3

13 2 0 3.3 3.6 3.6 3.8 3.6

14 0 2 4.3 3.6 3.6 3 3

15 2 2 3.6 3.3 4 4.8 3.8

16 0 2 3.3 4 3.3 3.5 3.5

17 4 3 3 3.3 3.3 3.5 3.5

18 1 2 5 2.2 1.6 3.8 2

19 2 4 3.6 3.3 4 4.2 4.5

20 2 2 4.3 3.6 4.6 5 3.621 1 3 2.6 3.3 3.6 3.5 2.3

22 2 3 4 4.6 4.6 4.5 4.1

23 1 2 4.3 4 5 3.2 3.16

24 1 0 3.6 3.6 3.6 5 2.5

25 2 4 3.6 4 3.6 4.5 2.3

26 1 2 4.6 5 4.6 4.5 3.1

27 1 1 3.3 3.6 3.6 3.7 2.828 4 5 2.6 3 3.3 3 3.3


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29 4 1 2.3 3 3.3 3.7 2.5

30 1 1 5 5 5 4 4TOTAL 63 73 110.8 107.3 117 121 96.76

Avg 2.1 2.4 3.6 3.5 3.9 4.03 3.2

Scale used :

VERY POOR = 1

POOR = 2

AVERAGE= 3

GOOD= 4

EXCELLENT = 5

So from the table we can analyse the following things :

MOST LIKABLE AND UNLIKEABLE ELEMENT OF CONSUMER:

1. We can see for X1 the total customersatisfaction add up to only 63

This is the minimum in all the questions.

2. While on the other hand the maximum point we got is 121 for the question

X6 that is :

SBI CUSTOMERS ARE SATISFIED WITH THE PRODUCTS.


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So on looking at the scale from 1 to 5, SBI should work on the following areas

because they have got only less point on likert scale.

Internet Banking.

Services offered in bank.

Facilities in branch.

HYPOTHESIS TESTING :

1. PRODUCTS :

It is based on the questionnaire question 6.

Soby looking at table

We got a total of 121 for the question 6

Avg rating is 4.03

i.e. Which is maximum in all the questions .

So we can say :

SBI Products provide customer satisfaction.

Therefore,

AcceptH0 & RejectH1


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2. INTERNET BANKING:

It is based on the questionnaire 2.

So by looking at table

We got a total of 73 for the question 2

Avg rating is 2.4

So we can say :

SBI customer dont prefer internet banking.

Therefore,

AcceptH1 & RejectH0

3. BANK BRANCHES :

It is based on the questionnaire 7.


We got a total of 96.76 for the question 7

Avg rating is 3.2

So we can say :

Customers are satisfied with branch facilities

Therefore,


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AcceptH0 & RejectH1

4. SERVICE :

It is based on question 3


We got a total of 110.8 for the question 3

Avg rating is 3.6

So we can say :

Customers are satisfied with services provided in bank

Therefore,

AcceptH0 & RejectH1


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Recommendation and conclusion

After doing the market survey on SBI we concluded the strength and

weaknesses of the SBI :

STRENGTH WEAKNESS

1.Years of Experience

2.Huge ATM Network

3.Transparency in Charges

4.Government Support

5.Safety and Security of Money

6.Experienced Employee

1.Lake of Young Employee

2.Excessive Documentation

3.Bureaucracy

4.Less control on employee

5.Poor technology


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7.Physical environment & Ambience

6.Large income from Loan interest

Poor recovery system

7.Less knowledgeable employee

8.Rigid work culture

OPPORTUNITIES THREATS

1.Even expanding rural, urban &

International Market.

2. Fraud and cheating with customer

from private banking

3. Proper Co Ordination and

1. Constant fear in the minds of customers

towards private bank.

2. Shifting customer

3. Private bank providing more facilities at

lower charges


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Communication between Bank and

Customer

4. Dissatisfy from private banking

5. So much hidden charges of private

banks

6. Time to time follow up to customer and

their Guarantors

4. Quick Dynamic employees and greater

technological product.

market research of brm

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