Final research

PERCEPTION OF CORPORATE CUSTOMERS TOWARDS SERVICES OF J&K BANK Page 1

THE BUSINESS SCHOOL

COURSE: MBA (208)

SUBJECT: ADVANCED RESEARCH METHODOLOGY

TOPIC: “PERCEPTION OF CORPORATE CUSTOMERS

TOWARDS SERVICES OF J&K BANK”

SUBMITTED TO: SUBMITTED BY:

DR. VINAY CHAUHAN SHWETANSHU GUPTA (49)

SIDHARTH GUPTA (50)

SHIVANI GUPTA (46)

SUSHANT GUPTA (47)


DECLARATION

We undersigned hereby declare that this report entitled “ENTREPRENEURIAL

INTENTIONS ON THE BASIS OF DEMOGRAPHICS” conducted under the supervision of

The Business School), Jammu University. The empirical Dr.Vinay Chauhan, Faculty (

findings in this report are based on the data collected by us and we will claim no right to own or

change or transform or publish this data as it stands the personal property of the institute. The

work is humbly submitted to The Business School, Jammu University for purely academic

purpose.

SHWETANSHU GUPTA (49)

SIDHARTH GUPTA (50)

SHIVANI GUPTA (46)

SUSHANT GUPTA (47)


ACKNOWLEDGEMENT

Completing a task is never one man’s effort. It is often the result of invaluable contribution

of number of individuals.

Acknowledging anyone in mere words is very difficult job.

My first and foremost thanks and obeisance to the supreme divine who ameliorated us with

relentless grace bestowed upon us all the time.

We owe immense heartfelt gratitude to our Prof. Dr. Vinay Chauhan to whom we are deeply

indebted for his valuable guidance, help, patience and encouragement without which this work

would have never come to fruition.

We are equally thankful to our parents for their unequivocal support throughout, as always, for

which our mere expressions of thanks likewise doesn‟t suffice.

We would like to express our sincere thanks to our seniors and friends for their generous

cooperation and friendly support and especially to Ms Shipra Gupta, Ph.D. Scholar, Commerce

department, University of Jammu.

Further, we would like to thank each and every one who provided a sort of camaraderie and help

during our research work.


LIST OF CONTENTS

S.NO CONTENTS PAGE.NO

1 ABSTRACT 7

2 INTRODUCTION TO JK BANK 8

3 PERCEPTION AND CUSTOMER

SATISFACTION

24

4 REVIEW OF LITERATURE & RESEARCH

METHODOLOGY

30

5 DATA ANALYSIS & INTERPRETATION 40

6 SUGGESTIONS AND RECOMMENDATIONS 49

7 LIMITATIONS OF RESEARCH 50

8 FUTURE SCOPE 51

8 QUESTIONNAIRE 52

9 REFERENCES 56


LIST OF TABLES

SNO NAME OF TABLE PAGE

NO.

1 PROFILE OF RESPONDENTS

41

2 HYPOTHESES OF STUDY 42

3 CORRELATION COEFFICIENT RELATIONSHIP BETWEEN

RELIABILITY AND PERCEPTION OF CUSTOMERS TOWARDS

PRODUCTS AND SERVICES OF J&K BANK

43


RELIABILITY AND PERCEPTION OF CUSTOMERS TOWARDS


44


ASSURANCE AND PERCEPTION OF CUSTOMERS TOWARDS


45


COMPLIANCE AND PERCEPTION OF CUSTOMERS TOWARDS


46

7 OUTPUTS FROM T-TEST

47

8 OUTPUTS FROM T-TEST

48


LIST OF FIGURES

SNO NAME OF TABLE PAGE

NO.

1 ORGANIZATION OF STRUCTURE 23

2 RELATION BETWEEN SERVICE QUALITY AND PERCEPTION 27

3 HYPOTHESES RESEARCH MODEL 31


ABSTRACT

The banking sector in India has always been considered as a premiere service sector. It has

gone through various reforms in the last couple of decades. Constant efforts have been made

to better the services and their quality delivered to the customers. Customers also have left

the traditional ways of banking. The essence of banking has moved far above from just

keeping safe the money. The heightened competition and versatility in the services provided

by banks has made both the corporate and the retail clients to become more choice-based

and product-oriented towards the banks. It has led customers to turn less ‗loyal„towards a

particular bank. This paper tries to analyze customer satisfaction in the Indian banking sector

towards the various services offered to them. A case study of Jammu & Kashmir Bank (J&K

Bank) was undertaken to analyze various dimensions of services and its impact on the

customer satisfaction. A questionnaire was devised to get responses from customers of the

bank for their loyalty about the services of the bank and the chances of their defection.

KEYWORDS:

CUSTOMER SATISFACTION, PERCEPTION, J&K BANK, SERVICES,


Chapter I

Introduction to J and K bank


BREIF HISTORY OF J&K BANK

The Jammu and Kashmir Bank was founded on October 1, 1938 under letters patent issued by

the Maharaja of Jammu and Kashmir, Hari Singh. The Maharaja invited eminent Kashmiri

investors to become founding directors and shareholders of the bank, the most notable of which

were Abdul Aziz Mantoo, Pesten Gee and the Bhaghat Family, all of whom acquired major

shareholdings. The Bank commenced business on July 4, 1939 and was considered the first of its

nature and composition as a State owned bank in the country. The Bank was established as a

semi-State Bank with participation in capital by State and the public under the control of State

Government. In 1971, the Bank acquired the status of a scheduled bank and was declared as an

A-Class bank by the Reserve Bank of India in 1976.The bank had to face serious problems at the

time of independence when out of its total of ten branches two branches of

Muzaffarabad, Rawalakot and Mirpur fell to the other side of the line of control (now Pakistan-

administered Kashmir) along with cash and other assets. Following the extension of Central laws

to the state of Jammu & Kashmir, the bank was defined as a government company as per the

provisions of Indian companies act 1956. Mushtaq Ahmed is the new Chairman and CEO of

Jammu & Kashmir Bank. However the State Govt. came to its rescue with the assistance of

Rs6.00 Lacks to meet the claims thereafter, the bank overcame its difficulties and kept growing.

Following the extension of Central laws to the state of Jammu & Kashmir, the bank was defined

as a govt. company as per the provisions of Indian Companies Act 1956. The bank had its first

full time chairman in 1971, following social Central measures in banks .The year 1971 was a

turning point for the bank on conferment of scheduled bank status and witnessed remarkable

progress in all the vital fields of operations. The bank was declared as "A" Class Bank by

Reserve Bank of India in 1976. In recognition of dominant role and exalted performance,

Reserve bank of India appointed the bank as its agent for performing the general banking

business of the Central Govt. especially in maintaining currency chests and collection of taxes.


UNIQUE CHARACTERISTICS & SERVICES

J&K Bank carries out banking business of the Central Government. Inspite of a government

equity holding of 53 per cent, Jammu & Kashmir Bank (J&K Bank) is regarded as a private

sector bank .J&K Bank is the one and only banker and lender of last resort to the Government of

J&K. Plan and non-plan funds, taxes and non-tax revenues are routed through the J&K Bank

J&K Bank claims the distinction of being the only private sector bank that has been designated

as agent of RBI for banking The services of J&K Bank are utilized for the purposes of disbursing

the salaries of Government officials. J&K Bank collects taxes pertaining to Central Board of

Direct Taxes, in Jammu & Kashmir.

Unique features that differentiate J&K Bank depository from other broking firms are as follows:-

3-in-1 Account which integrates

J&K Bank demat account

J&K Bank savings account

Online investment account (Trading Account)

Convenience

The 3-in-1 account integrates banking, broking and demat accounts. When customers place buy

or sell order with J&K Bank depository, the system checks the funds and shares available in

their bank and demat account respectively and executes the trade on the exchange online. The

bank account and the demat account is automatically debited or credited. This enables

DEMAT ACCOUNT

BANK ACCOUNT

TRADING

ACCOUNT


customers to trade in shares without going through the hassles of tracking settlement cycles,

writing cheques and Transfer Instructions, chasing his/her broker for cheques or Transfer

Instructions etc.

Speed

Customers can get the latest quotes of scripts and this enables them to place an order

immediately.

Control

Customer gets an order confirmation instantly. This ensures that one has indeed placed an order

at the price one wanted to. Thus, one has complete control over his order.

VISION OF THE BANK

The Bank's vision is “To catalyze economic transformation and capitalize on growth”. The

bank aspires to make Jammu and Kashmir the most prosperous state in the country, by helping

create a new financial architecture for the J&K economy, at the center of which will be the J&K

Bank. The Bank is committed to achieve healthy growth in profitability and simultaneously to

remain consistent with the Bank's risk appetite and at the same time ensuring the highest levels

of ethical standards, professional integrity and regulatory compliance.

MISSION OF THE BANK

The company‟s mission is two-fold: To provide the people of J&K international quality financial

services and solutions and to be a super-specialist bank in the rest of the country. The two

together will make it the most profitable bank in the country.

PHILOSOPHY:

The Bank‟s Corporate Governance philosophy is woven around its total commitment to the

ethical practices in the conduct of its business, while striving in the constant quest to grow with

profits and enhance shareholders value and align the interests of the Stakeholders and Society

through adoption of best international practices and standards. The Corporate Governance

policies of your Bank recognize the accountability of the Board vis-à-vis its various constituents


including customers, shareholders, investors, employees, Government and regulatory authorities

and societal responsibilities as a corporate citizen.

J&K Bank is committed to the best and transparent corporate governance practices. It believes

that proper corporate governance practices leads to effective management and control of

business, which in turn provides best value to all its stakeholders through highly motivated

personnel, visionary leadership, respect for people and society, innovation and sound fiscal

discipline.

Your Directors have immense pleasure in presenting the 67th Annual Report on the business and

operations of your Bank together with the audited accounts for the year ended March 31.2011,

RECOGNITION AND AWARDS

The Bank won the prestigious Asian Banking Award – 2005 for its „Development Project

Financing Programme, contributing significantly to the development of tourism industry of the

J&K State. The award was presented by the Under Secretary Finance, Philippines, at a glittering

Gala Dinner award function held at Manila, Philippines on June 17, 2005. The annual Asian

banking awards recognize and honor Asian banks for outstanding, innovative and world-class

products and programs implemented during the previous year. It is the most respected and

premier banking awards program in Asia Pacific region. It is worth mentioning that the Bank has

won the Asian Banking Award consecutively for the two years. Before this, the Bank had won

the award for Customer Convenience Programmes and was also given runners up certificate for

its project „Motivating Employees for Better Performance' under „Operational Efficiency

Programme' category. The Bank was ranked fifth among the top ten Asian banks and 762nd

among top 1000 World banks. A renowned business journal "Business Today” ranked JK Bank

among 25 top investor friendly companies in India, the only bank in the whole Indian Banking

industry, which has been ranked in the magazine among first 10 Investor Friendly Companies.

The Bank for the second consecutive year was ranked Best Private Sector Bank in Financial

Express/ Ernest and Young combined Survey for the year 2002-03 released recently. Bank was

awarded „Shiromani Award' for outstanding achievements in the field of banking and

commitment to national progress and human welfare during the year under report. The Bank has

figured among 24 Indian companies in Forbes Global - 100 best „under a billion Asia's Rising


Companies', listed by Forbes magazine in its issue dated November 01 2006. The publication has

commended J&K Bank for representing economic dynamism in the region, sustained growth in

all spheres and an excellent track record of rewarding its shareholders.

BANKS NEW IDENTITY

The new identity of the J&K Bank is a visual representation of the Bank‟s philosophy

and business strategy. The three colored squares represent the three regions of the state viz,

Jammu, Kashmir and Ladakh. The counter-form created by the interaction of the squares is a

falcon with outstretched wings – a symbol of power, speed and empowerment. The synergy

between the three regions propels the bank towards new horizons. Green signifies growth and

renewal, blue conveys stability and unity, and red represents energy and power. All these

attributes are integrated and assimilated in the white counter-form.

SUPPORT SERVICES

Technology application has remained the thrust area of the Bank for last many years with an objective to

offer state of the art world class Banking facilities to its customers. The Bank continued to leverage

information technology as a strategic tool for its business operations, to gain competitive edge in

customer service as well as improving productivity and efficiency. The Bank‟s IT strategy emphasizes

enhanced level of customer services through 24x7 availability, multi-channel Banking and cost efficiency

through optimal use of electronic channels, wider market reach and opportunities for cross-selling. The

Bank‟s focus is on harnessing technology for integrating diverse products and services. Keeping this in

view, the Bank continued to widen the scope of multiple delivery channels such as ATM installations,

Anywhere Banking, Internet Banking and SMS Banking at more & more centres.

Anywhere Banking Features


Power to Access to your accounts across our branch network.

The facilities include Cash Deposit/Withdrawal and transfer.

Outstation Cheque collection.

Internet Banking/Features

Available for both Retail and Corporate users.

SMS Banking

Statement of Accounts.

Funds Transfer.

Submit the filled form at your branch for creation of your Internet banking user

Corporate/Retail Internet Banking

Both corporate and retail clients can access their accounts anytime and from any location via the World

Wide Web. Presently following services are available to the corporate clients:

Access/view of accounts

Transfer of Funds between self linked accounts maintained with our bank.

Transfer of Funds from their own accounts to external accounts (e.g. Vendor payment)

Transfer of Funds from external to own accounts (e.g. dealer collection).

Transfers of Bulk upload.

Transfer to non J & K Bank account holders through RBI NEFT/RTGS.

Transfer of non-standard bills.

Utility bill payments.

Ecommerce facility for JK Bank Ebanking customers

J & K Bank Secure Payment Gateway, to provide ecommerce facility to the ebanking customers.

Tie up with M/S Avenues India Pvt. Ltd. (Ccavenue) and M/S BillDesk, for extending ecommerce

facility to the ebanking customers.

The facility shall be available to only such ebanking users, which have been enabled by the Bank for

Bill Payment facility.

ebanking users intending to purchase goods online through the Ccavenue shopping site shall be

required to:


Logon to the Master Merchant‟s (M/S Avenues India Pvt. Ltd.) website

http://world.ccavenue.com/content/clients.jsp.,

Select the item to be purchased

Select ebanking as the mode of payment.

Select the J & K Bank and the system will take the user to the J & K Bank‟s ebanking site prompting

him to enter his ebanking user-id and password.

After entering the Bank‟s ebanking site the customer will be able to pay the amount of bill by debit to

its own account.

M/S BillDesk - is a useful service that provides customers a single point of contact for all your

payment needs. Our customer can pay bills and make other payments online. Instead of writing a

cheque each time, now our customers can use any device connected to the Internet (computer, kiosk,

etc) and make payments with the click of a mouse. In effect, through BillDesk customers can now

make All Payments at a Single Location.

e-Payment of Tax for

JK Bank Ebanking customers

NSDL (National Securities Depository Ltd.), the first and largest depository in India, established in

August 1996 and promoted by institutions of national stature responsible for economic development

of the country has since established a national infrastructure of international standards that handles

most of the securities held and settled in dematerialised form in the Indian capital market.

Tax Information Network (TIN), a repository of nationwide tax related information, has been

established by National Securities Depository Limited on behalf of Income Tax Department of India

(ITD).

Although India had a vibrant capital market which is more than a century old, the paper-based

settlement of trades caused substantial problems like bad delivery and delayed transfer of title till

recently.

e-Payment facilitates payment of direct taxes online by taxpayers. To avail of this facility the

taxpayer is required to have a net-banking account with any of the banks certified by NSDL,CBDT

and RBI for collection of Direct TAX. J&K Bank has been added to the list.Also, e-payment of

Indirect Tax for J&K State Govt. has been added to our services.

SMS Banking

Be in touch with your account on the move Features


Balance Enquiry

Transaction enquiry

Cheque Status Enquiry

ATM Services Features

A network of more than 325 ATMs deployed across the country.

Accepting Maestro / Cirrus / Mastercard / VISA / NFS atm / debit / credit cards.

Debit Cards Features

Pin Based -Maestro / Cirrus Debit Card

Provides online access to savings or current account.

Accepted at all Domestic as Well as International MasterCard™, Maestro™, Cirrus™ Enabled

ATM's and Point Of Sale locations.

Accepted at National Financial Switch (NFS) ATM's.

No Transaction Fee at JK Bank ATM's

No Transaction Fee on purchases

Credit Cards Features

20-50 day Credit Free Period

Revolving Credit Facility on paying of minimum payment due in the same billing period.

Hassle free credit facility at competitive rate of interest.

Cash Withdrawal Facility upto 20% of total credit limit.

Loyalty programme

MasterCard® SecureCode™ enbaled Credit Cards.J&K Bank lets you shop securely online with your

J&K Bank MasterCard Credit Card. This service through a simple checkout process, confirms your

identity when you make purchases on the Internet

To use the facility, you would:

Connect to the Internet and shop online using your J&K Bank Credit Card.

You don't need any special software to use MasterCard SecureCode.

Using this facility is as easy as using a PIN for ATM transactions.

Grievance Nodal Officer for Credit Cards

Mr. Parvez Ahmad


0194-2486427

[email protected]

Card Issuing and Acquiring Department; Corporate Headquarters J&K Bank

Most Important Terms and Conditions (JK Bank Credit Card)

One Time Password(OTP) for IVR transactions: Effective January 1, 2011, as mandated by Reserve

Bank of India (RBI), Credit-Card-issuing Banks in India have introduced an additional measure of

security for IVR transactions (Interactive Voice Response transactions are those transactions which are

made over the phone where certain Credit-Card details are to be entered into an automated system in

order to make payment to a merchant for the purchase of goods/services) through their Credit Cards – the

OTP (One Time Password) generation.

What is an OTP?

An OTP is a six-digit code, valid for a limited period from the time of placing a request for it. You will

need to obtain an OTP before every IVR payment transaction.

How to obtain an OTP?

You can obtain the OTP by visiting http://www.jkbank.net/jksip.php and logging in to J&K Bank Secure

Internet Payment. A link Pre OTP is available for generating the OTP which would be emailed to your

registered email. Alternatively, the OTP can be displayed on the screen by clicking on the small check

box provided for the purpose.

How to use the OTP?

The OTP is required at the time of making payment on the IVR, where you will be prompted to enter it

along with the other details like your credit-card number, card expiry date and CVV number.

Merchant Acquiring/ Features

All types of Visa & MasterCard based cards Accepted

Quick Merchant Payment

Merchant Helpdesk and Onsite Support.

Competitive Commission Rates


No hidden Charges

Basic Information

Depository: A depository is like a bank where securities are held in electronic (dematerialized) form.

Dematerialization: It is the process of converting the securities held in physical form (certificates) to an

equivalent number of securities in electronic form and crediting the same to the investor's demat account.

Dematted securities do not have any certificate numbers or distinctive numbers and are dealt only in

quantity i.e. the securities are replaceable

Stock Broking through INVESTMART an initiative of ILFS: You can avail the facility of buying and

selling of shares under single roof. It integrates your Broker, DP and Bank on a single platform.You may

open a trading account by opening a Demat account with J&K BANK, SAVING ACCOUNT with J&K

BANK and Stock Broking Account by filling Investor Registration form of INVESTMART an initiative

of ILFS and our business patner for providing broking services.For further queries you may contact the

DP branches of J&K Bank

Depository Participant of NSDL and CDSL: In our country there are two central depositories -

National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL).J&K

BANK is Depository Participant of both NSDL and CDSL.

Under the Depositories Act, investors can avail of the services of the depositories through Depository

Participants (DPs) such as J&K BANK. DPs are like bank branches wherein shares in physical forms

need to be deposited for converting the same to electronic (demat) form.

Market transaction: When securities are transferred from a beneficiary account of an investor to a

clearing member account of a broker for ensuring delivery of securities on a stock exchange, then it is a

market transaction.

Off-market transactions: When securities are transferred from the beneficiary account of one investor to

that of another, and the transaction does not get routed to the stock exchange, it is an off-market

transaction.

Rematerialisation (Remat)

It is the process of conversion of securities from electronic to physical form

Third party service of Mutual Funds


J&K Bank has entered into tie-ups with reputed Asset Management Companies for distribution of Mutual

Fund products.

Mutual Fund industry is one of the fastest growing segments in financial services in India. Over the years,

banks in India have emerged as the biggest distributors of financial products. This has helped the banks to

capture and retain their huge client base and simultaneously adding a steady stream of fee based income.

Mutual Funds have become an attractive proposition for investors in the current context and for J&K

Bank it will be a good investment option to have in our product portfolio. This shall be an important step

towards converting the bank branch into a financial supermarket addressing all the financial needs of the

customers thus helping the bank retain the customers within its fold.

Moreover the branch can augment its fee based income the Bank aims to match to industry standards.

The AMCs with which the Bank has entered into an arrangement are: UTI, Kotak and Reliance Mutual

Fund. The Bank shall undertake distribution of their current schemes as well as NFO (New Fund Offer) as

and when the AMC comes up with the same.

Insurance Services -Life Insurance

MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and was incorporated

as a joint venture between MetLife International Holdings, Inc., The Jammu and Kashmir Bank, M.

Pallonji and Co. Private Limited and other private investors.

MetLife is one of the fastest growing life insurance companies in the country. It serves its customers by

offering a range of innovative products to individuals and group customers at more than 600 locations

through its bank partners and company-owned offices. MetLife has more than 32,000 Financial Advisors,

who help customers achieve peace of mind across the length and breadth of the country.

MetLife, Inc., through its affiliates, reaches more than 70 million customers in the Americas, Asia Pacific

and Europe. Affiliated companies, outside of India, include the number one life insurer in the United

States (based on life insurance in force), with over 140 years of experience and relationships with more

than 90 of the top one hundred FORTUNE 500® companies. The MetLife companies offer life insurance,

annuities, automobile and home insurance, retail banking and other financial services to individuals, as

well as group insurance, reinsurance and retirement and savings products and services to corporations and

other institutions.


The bank is also Corporate Agent of MetLife and is marketing its products through its strong branch

network. Visit the Metlife Website for the details on products

PRODUCT RANGE OF THE COMPANY

Loans

Housing Loan Scheme: Quantum of loan

For Construction /Purchase 60 months net salary or 75.00 Lacs whichever is lower. For repairs/renovation

20 months net salary, subject to a maximum of 10.00 Lacs.

For purchase of land: 20 months net salary/income subject to maximum of 5 Lacs within J&K and 10.00

Lacs outside J&K.

Also as an incentive for small borrowers, the loans upto 1.5 Lacs granted for repairs/renovations of

existing houses would now be secured by third party guarantee of two persons or such other security as is

deemed appropriate by the Bank.

Insurance

Life Insurance Segment/ Metlife India Insurance

MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and was incorporated

as a joint venture between MetLife International Holdings, Inc., The Jammu and Kashmir Bank, M.

Pallonji and Co. Private Limited and other private investors.

MetLife is one of the fastest growing life insurance companies in the country. It serves its customers by

offering a range of innovative products to individuals and group customers at more than 600 locations

through its bank partners and company-owned offices. MetLife has more than 32,000 Financial Advisors,

who help customers achieve peace of mind across the length and breadth of the country.

MetLife, Inc., through its affiliates, reaches more than 70 million customers in the Americas, Asia Pacific

and Europe. Affiliated companies, outside of India, include the number one life insurer in the United

States (based on life insurance in force), with over 140 years of experience and relationships with more

than 90 of the top one hundred FORTUNE 500® companies. The MetLife companies offer life insurance,

annuities, automobile and home insurance, retail banking and other financial services to individuals, as

well as group insurance, reinsurance and retirement and savings products and services to corporations and

other institutions.


The bank is also Corporate Agent of MetLife and is marketing its products through its strong branch

network.

Tax Products/Planning

Tax Products & Planning (Tax Saver Term Deposit Scheme)

Purpose: To enable our customers to place long term deposits to earn higher rate of interest and also to

avail the tax benefits under section 80C of Income Tax Act, 1961.

Savings & Deposits

Savings Bank Deposit Scheme

Salient Features

Account can be opened with a minimum initial deposit of 100/- to 500/-

Convenient and easy to operate account to save time and money.

Suitable for irregular income group No time bar on depositing or withdrawing money.

Who can open this Account?

A person in his/her name.

More than one person in their joint names.

Minor through guardian or himself if above 10 years of age.

Illiterate persons.

Blind persons. - Associations, clubs, Societies, Trusts, etc.

Facilities

Anywhere banking facility.

ATM/Debit card.

Telebanking facility.

Cheque book facility

Cards

Global Access Card

Salient Features

Pin Based -Maestro / Cirrus Debit Card

Provides online access to savings or current account.


Accepted at all Domestic as Well as International MasterCard™, Maestro™, Cirrus™ Enabled

ATM's and Point Of Sale locations.

Accepted at National Financial Switch (NFS) ATM's.

No Transaction Fee at JK Bank ATM's

No Transaction Fee on purchases

Mutual Funds

J&K Bank has entered into tie-ups with reputed Asset Management Companies for distribution of Mutual

Fund products.

Mutual Fund industry is one of the fastest growing segments in financial services in India. Over the years,

banks in India have emerged as the biggest distributors of financial products. This has helped the banks to

capture and retain their huge client base and simultaneously adding a steady stream of fee based income.

Mutual Funds have become an attractive proposition for investors in the current context and for J&K

Bank it will be a good investment option to have in our product portfolio. This shall be an important step

towards converting the bank branch into a financial supermarket addressing all the financial needs of the

customers thus helping the bank retain the customers within its fold.

Moreover the branch can augment its fee based income the Bank aims to match to industry standards.

The AMCs with which the Bank has entered into an arrangement are: UTI, Kotak and Reliance Mutual

Fund. The Bank shall undertake distribution of their current schemes as well as NFO (New Fund Offer) as

and when the AMC comes up with the same.

Non Resident Banking

A deposit plan that provides standard banking facilities such as Cheque book, provision for nomination

and other remittance facilities and also allows repatriation of entire funds.


ORGANIZATION STRUCTURE OF THE COMPANY


Chapter II

Meaning of perception and customer

satisfaction


MEANING OF PERCEPTION:

Perception

Perception is the ability to pick out something through the different senses. It can be through

seeing, hearing, smelling or touching. The sensory stimulus of the body system consciously

registers an activity or event in the human memory. Perception depends on complex functions of

the nervous system, but subjectively seems mostly effortless because this processing happens

outside conscious awareness.

Factors affecting perception

(a) The Perceiver: When an individual looks at the target and attempts to interprete what he /

she sees. Such interpretation is heavily influenced by personal characteristics of the individual

perceiver. The characteristics of perceiver include person‟s needs. Past experience, habits,

personality, values, attitudes etc.

For example: – a negative attitude person interprets negative results and further makes negative

perception.

(b) The Perceived (object): Characteristics of the target, which has been, observed also affects

the individual‟s perception. The physical attributes, appearance and behaviour of other persons in

the situation also influences the perception. Physical attributes of the person means age, height,

weight, gender etc.

Loud people are easily noticeable in a group in comparison to the quite ones. Motion sound, size

and other attributes of a target also affect the perception of an individual.

Object which is perceived is not observed in isolation, the relationship of a target with its

background also influences perception. Person, objects or events that are similar to each other

also tend to be grouped together. Greater the similarity, the greater is the probability that we will

tend to perceive them as a common group.

(c) The Situation: The physical, social and organizational setting of the situation also

influences individual‟s perception. The situation in which we see objects or events is important.

The elements in the surrounding environment influence our perception. For example: - hearing a


subordinate calling his / her boss by his / her name may be perceived quite differently when

observed in an office as opposed to an evening social reception.

PERCEPTION AND CUSTOMER SATISFACTION

Those who buy the goods or services provided by companies are customers. In other words, a

customer is a stakeholder of an organization who provides payment in exchange for the offer

provided to him by the organization with the aim of fulfilling a need and to maximise

satisfaction. Sometimes the term customer and consumer are confusing. A customer can be a

consumer, but a consumer may not necessarily be a customer. Another author explained this

difference. I.e. a customer is the person who does the buying of the products and the consumer is

the person who ultimately consumes the product (Solomon, 2009, p. 34.)

When a consumer/customer is contented with either the product or services it is termed

satisfaction. Satisfaction can also be a person‟s feelings of pleasure or disappointment that results

from comparing a product‟s perceived performance or outcome with their expectations (Kotler &

Keller, 2009, p. 789). As a matter of fact, satisfaction could be the pleasure derived by someone

from the consumption of goods or services offered by another person or group of people; or it

can be the state of being happy with a situation. Satisfaction varies from one person to another

because it is utility. “One man‟s meal is another man‟s poison,” an old adage stated describing

utility; thus highlighting the fact that it is sometimes very difficult to satisfy everybody or to

determine satisfaction among group of individuals.

Client happiness, which is a sign of customer satisfaction, is and has always been the

most essential thing for any organization. Customer satisfaction is defined by one author as “the

consumer‟s response to the evaluation of the perceived discrepancy between prior expectations

and the actual performance of the product or service as perceived after its consumption” (Tse &

Wilton, 1988, p. 204) hence considering satisfaction as an overall post-purchase evaluation by

the consumer” (Fornell, 1992, p. 11). Some authors stated that there is no specific definition of

customer satisfaction, and after their studies of several definitions they defined customer

satisfaction as “customer satisfaction is identified by a response (cognitive or affective) that

pertains to a particular focus (i.e. a purchase experience and/or the associated product) and

occurs at a certain time (i.e. post-purchase, post-consumption)”. (Giese & Cote, 2000, p. 15) This

definition is supported by some other authors, who think that consumer‟s level of satisfaction is


determined by his or her cumulative experience at the point of contact with the supplier

(Sureshchander et al., 2002, p. 364). It is factual that, there is no specific definition of customer

satisfaction since as the years passes, different authors come up with different definitions.

Customer satisfaction has also been defined by another author as the extent to which a product‟s

perceived performance matches a buyer‟s expectations (Kotler et al., 2002, p. 8). According to

Schiffman & Karun (2004) Customer satisfaction is defined as “the individual‟s perception of

the performance of the products or services in relation to his or her expectations” (Schiffman &

Karun 2004, p. 14). In a nutshell, customer satisfaction could be the pleasure obtained from

consuming an offer.

Measuring customer satisfaction could be very difficult at times because it is an attempt to

measure human feelings. It was for this reason that some existing researcher presented that “the

simplest way to know how customers feel, and what they want is to ask them” this applied to the

informal measures (Levy, 2009, p. 6; NBRI, 2009).

Since customer satisfaction has been considered to be based on the customer‟s experience on a

particular service encounter, (Cronin & Taylor, 1992) it is in line with the fact that service


quality is a determinant of customer satisfaction, because service quality comes from outcome of

the services from service providers in organizations.

Another author stated in his theory that “definitions of consumer satisfaction relate to a specific

transaction (the difference between predicted service and perceived service) in contrast with

„attitudes‟, which are more enduring and less situational-oriented,” (Lewis, 1993, p. 4-12) This is

in line with the idea of Zeithaml et al (2006, p. 106-107).

Regarding the relationship between customer satisfaction and service quality, Oliver (1993) first

suggested that service quality would be antecedent to customer satisfaction regardless of whether

these constructs were cumulative or transaction-specific. Some researchers have found empirical

supports for the view of the point mentioned above (Anderson & Sullivan, 1993; Fornell et al

1996; Spreng & Macky 1996); where customer satisfaction came as a result of service quality.

In relating customer satisfaction and service quality, researchers have been more precise about

the meaning and measurements of satisfaction and service quality. Satisfaction and service

quality have certain things in common, but satisfaction generally is a broader concept, whereas

service quality focuses specifically on dimensions of service. (Wilson et al., 2008, p. 78).

Although it is stated that other factors such as price and product quality can affect customer

satisfaction, perceived service quality is a component of customer satisfaction (Zeithaml et al.

2006, p. 106-107). This theory complies with the idea of Wilson et al. (2008) and has been

confirmed by the definition of customer satisfaction presented by other researchers.

The above figure shows the relationship between customer satisfaction and service quality. The

author presented a situation that service quality is a focused evaluation that reflects the

customer‟s perception of reliability, assurance, responsiveness, empathy and tangibility while

satisfaction is more inclusive and it is influenced by perceptions of service quality, product

quality and price, also situational factors and personal factors. (Wilson, 2008, p. 78)

It has been proven from past researches on service quality and customer satisfaction that

Customer satisfaction and service quality are related from their definitions to their relationships

with other aspects in business. Some authors have agreed to the fact that service quality

determines customer satisfaction. Parasuraman et al., (1985) in their study, proposed that when

perceived service quality is high, then it will lead to increase in customer satisfaction. Some


other authors did comprehend with the idea brought up by Parasuraman (1995) and they

acknowledged that “Customer satisfaction is based upon the level of service quality that is

provided by the service providers” (Saravana & Rao, 2007, p. 436, Lee et al., 2000, p. 226).

Looking into (figure 1), relating it to these authors‟ views, it is evident that definition of

customer satisfaction involves predicted and perceived service; since service quality acted as one

of the factors that influence satisfaction. More evidence of this relationship has been proven by

past researches.


Chapter III

Review of literature and Research

Methodology


PROPOSED MODEL AND REVIEW OF LITERATURE

Our conceptual model is demonstrated in Figure 1. This model starts with SERVQUAL

measurement scale, consisting of six dimensional structures: tangibles, reliability,

responsiveness, assurance, and empathy, and compliance dimensions to measure J&K bank

service quality. Furthermore, a conceptual model of the relationship between service quality and

customer satisfaction (Figure 1) is developed based on the literature and hypotheses are explore

The SERVQUAL model has provided a comprehensive conceptualization of service quality with

an instrument to measure perceived service quality. This method has been very popular with

academics and researchers to assess the customer perception of service quality for a variety of

service industries. The five dimensions of service quality include:

Tangibles (appearance of physical components);

Reliability (dependability of service provider and accuracy of performance);

Responsiveness (promptness and helpfulness);

Assurance (knowledge and courtesy of employees and their ability to inspire trust and

confidence)

This is a generic model and instrument for all service encounters. In fact, a number of

researchers and academics have recently studied the conceptualization and measurement

approach used for developing the SERVQUAL scale in different industries. Dabholkar et al.

(1996) suggested that service quality is multi- level and multidimensional. They found that


quality of service is directly influenced by the customer‟s perceptions of performance levels, and

the customers‟ personal characteristic are important in assessing the value, but not quality. Angur

et al. (1999) suggested that the SERVQUAL scale is multidimensional and is able to provide

more diagnostic information due to its greater variability across banks than the SERVPERF

scale.

Although the SERVQUAL model has greatly contributed to the literature on service quality it

has been criticized. Generally, critics have questioned the multidimensional nature of the

instrument, measurement scales, psychometric properties, and the feasibility of SERVQUAL as a

framework in measuring service quality. Carman (1990) says that the SERVQUAL needed to be

customized by adding items or changing the wording of items. The dimensions stability of

SERVQUAL was unclear, not completely generic, and not sufficient to meet service quality

measurement needs. Babakus and Boller (1992) revealed that the SERVQUAL model appears to

suffer from a number of methodological and measurement flaws. The five dimensions of

SERVQUAL failed to construct a service quality measurement and the SERVQUAL is uni

dimensional rather than a five-dimensional construct. They further suggested that the

dimensionality of service quality may depend on the type of industry being studied. Cronin and

Taylor (1992) suggest that the SERVPERF scale explains more variation in service quality than

does SERVQUAL and the SERVQUAL is uni-dimensional. Teas (1993) revealed that the P-E

model indicates a number of problems of the conceptual and operational definitions of the

expectations and the revised expectations (E *) components of the model.

In retail banking, Newman (2001) suggested that the SERVQUAL model does not

appear to be the holistic model and doubted the value of SERVQUAL as a measure of service

quality. In commercial banks, Jabnoun and Al-Tamimi (2003) explained that the dimensions

found were different from the original SERVQUAL dimensions, and there were problems with

these as there were some overlaps. Cui et al. (2003) revealed that SERVQUAL and SERVPERF

were not uni-dimensional. Confirmatory factor analysis revealed that the measurement scale

lacked validity with samples from different cultures.

To date, there have been a few empirical studies regarding the dimension of service

quality in banking. Al-Tamimi and Al-Amiri (2003) modified the five SERVQUAL dimensions

to measure service quality. They found that reliability was the most important dimension on their

instrument.


Even though a number of methodological issues have been debated and are

controversial, the preponderance of research has been strongly influenced by the conceptual

model of service quality proposed by Parasuraman et al. (1985), and subsequently

operationalized and refined by the same authors. This articulation of the service quality construct

and its associated SERVQUAL measure has spawned hundreds of studies across the industries.

Karatape et al. (2005) suggested that service quality measures developed in one culture may

capture service quality sentiments in another culture.

In the service literature, Oliver (1980) explained that customer satisfaction entails the full

meeting of customer expectation of the products and services. If the perceived performance

matches or even exceeds customers‟ expectations of services, they are satisfied. If it does not,

they are dissatisfied (de Wulf, 2003). In the real world, unsatisfied customers tend to create

negative word-of-mouth and convey their negative impression to other customers (Lewis, 1991;

Newman, 2001; Caruana, 2002). These positive and negative word-of-mouth communications

are very useful.

Previous research has identified various factors that determine customer satisfaction in the retail

banking sector in the USA and Europe. To satisfy customers, Greek Cypriot bank in Turkey used

service quality to achieve customer satisfaction. The SERVQUAL dimensions were explanatory

variables in predicting customer satisfaction and the reliability dimension had highest impact on

overall customer satisfaction (Arasly et al., 2005a). This study was consistent with Othman and

Owen (2001) who suggested that there is a strong link between SERVQUAL and customer

satisfaction. Fast and efficient service; friendliness of bank personnel; confidentiality of bank;

speed of transaction are as the key criteria which they has satisfied by the banks (Haron et al.,

1994). Finding from college students in Bahrain, indicated that young customers places more

emphasis on factors like a bank‟s reputation, friendliness of bank personnel, convenient location,

24-hours ATM, and availability of parking space in selecting their banks (Almossawi, 2001).

The bank‟s ability to deliver these benefits on an on-going basis probably influences the level of

customer satisfaction. Banks have provided innovative methods of satisfying customers, such as

internet banking and online system, telephone and call center.

According to Levesque and McDougall (1996), convenience and competitiveness of the bank are

two important factors which are likely to influence the overall satisfaction levels of a customer.


In the services literature, strong emphasis is placed on the importance of service quality

perceptions and the relationship between service quality and customer satisfaction (Cronin and

Taylor, 1992; Taylor and Baker, 1994). Some researchers and academics described that customer

satisfaction is an antecedent of service quality (Parasuraman et al., 1985, 1988, 1991, 1994;

Carman, 1990; Bitner, 1990), and others have counterargued that the service quality as an

antecedent of customer satisfaction (Cronin and Taylor, 1992, 1994; Bolton and Drew, 1991;

Anderson and Sullivan, 1993) and that service quality is not equivalent to satisfaction (Oliver,

1980). The current research from retail banking sector in UAE, indicated that service quality

dimensions appear to be linked to customer satisfaction, where core and relational dimensions of

service quality are causal antecedents of customer satisfaction (Jamal and Naser, 2002).

However, there is very little empirical research demonstrating the importance of service quality

dimensions in determining customer satisfaction (Fisk et al., 1993; Levesque and McDougall,

1996). In a recent study, Levesque and McDougall (1996) found that the performance of the

service provider on core and relational dimensions of services was an important driver for

customer satisfaction in retail banking. Bitner et al. (1994) and Anderson et al. (1994) also point

to this link by suggesting that improved service quality will provide significant impact of

customer satisfaction. The causal relationship between service quality and customer satisfaction

is the subject of great academic debated and no consensus has been reached (Bahia et al., 2000).

Nevertheless, from a theoretical point of view the researchers and academics have established the

conceptual definition of customer satisfaction. Then, we develop a set of hypothesis, service

quality are positively related to customer satisfaction.

SERVQUAL SCALE:

The SERVQUAL scale includes five dimensions: tangibles, reliability, responsiveness, assurance

and empathy. Within each dimension are several items measured on a five-point scale from

strongly agree to strongly disagree.

SERVQUAL QUESTIONS:

Likert scale was used to measure the responses provided by the respondents and the Likert

format items were presented with 5-point scales, where:


„1‟ = Strongly Disagree, 2‟ = Disagree, „3‟ = Indifferent, 4‟ = Agree and 5‟ = Strongly

Agree.

RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. The Research

Methodology includes the various methods and techniques for conducting a Research.

“D. Slesinger and M.Stephenson in the encyclopedia of Social Sciences define Research as “the

manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct or

verify knowledge, whether that knowledge aids in construction of theory or in the practice of an

art”.

Research is a careful investigation or inquiry especially through search for new facts in branch of

knowledge: market research specifies the information. Required to address these issues: designs

the method for collecting information: manage and implements the data collection process

analyses the results and communicates the finding and their implications.Research problem is the

one which requires a researcher to find out the best solution for the given problem that is to find

out the course of action, the action the objectives can be obtained optimally in the context of a

given environment.

RESEARCH PROBLEM

To find the Customer‟s Perception toward various products and services of J&K bank.

SOURCE OF INFORMATION

Since this research is related to the customer‟s perception, so the important sources of

information are customers themselves.

SAMPLE DESIGN

The sample size that was studied in this project is 40.

Method of sampling – Convenience sampling

INSTRUMENT OF DATA COLLECTION:


The objectives of the project are such that both primary and secondary data is required to achieve

them. So both primary and secondary data was used for the project. The mode of collecting

primary data is questionnaire mode and sources of secondary data are research work already

done & websites.

PRIMARY DATA:

The primary data was collected to measure the perception of corporate customer towards

services and products of J&K Bank. The primary data was collected by means of direct

personal interview method through structured questionnaire and analysis was done on the basis

of response received from the customers. The source for the primary data was a questionnaire.

The questionnaire is the most popular and useful method for the collecting survey data and helps

in analysing the information from the framed questions to get the real picture of the subject. The

questionnaire has been designed in such a manner that the customer‟s perception level can be

measured and consumer can enter his/her responses easily. The questionnaire that was used for

the collection of the research data contained 10 questions. Out of which, 9 questions were closed

question based on options and 1 open end question.

The questions used in the questionnaire contained information and details about the bank like

Details of the person interacted about product/service being utilized

Customer‟s current level of knowledge regarding bank product

Customer‟s preferences about the product which they would rate higher than other

product and

Customer‟s media preference or the way in which they would like the product to be

advertised or promoted

SECONDARY DATA:

The secondary data used in the research was collected from

The Jammu and Kashmir bank‟s magazines.

Websites.


IMPORTANCE OF RESEARCH METHODOLOGY

Whenever a scientific problem is to be solved there are several important steps to follow. The

problem must be stated clearly, including any simplifying assumptions. Then develop a

mathematical statement of the problem. This process may involve use of one or more

mathematical procedures. Frequently, more advanced text books or review articles will be

needed to learn about the techniques and procedures. Next, the results have to be interpreted to

arrive at a decision. This will require experience and an understanding of the situation in which

the problem is embedded.

NEED OF THE STUDY

In the current trend, customer satisfaction plays a major role in all parts of the service. This

research work is used to predict the over-all customer satisfaction and dissatisfaction with J&K

bank services. This study helps to identify the customers‟ perception and satisfaction of J&K

bank products and services.

Very less work has been done in this field especially regarding products and services of J&K

bank.

OBJECTIVES OF THE STUDY

Every study has a particular goal. A study without objectives cannot reach the

destination. Our project work is also directed to some particular targets and the main

objectives of the study are as bellow:

To study the customer perception towards various products and services of J&K Bank,

which is a subject of customer perception towards various services and products.

To study the major factors responsible for their satisfaction.

To make bank employees aware about the customer problems and give

suggestions to solve them so that the Bank can retain and maintain the loyal

customers.

HYPOTHESES OF STUDY:


Perception of corporate customers towards various services and products offered by J&K

bank is a by- product of customer satisfaction level which depends on the services offered

by bank. Various indicators of satisfaction level include:

Tangibility

Reliability

Responsiveness

Assurance

Compliance

TABLE 1: HYPOTHESES OF STUDY

SNO OBJECTIVE HYPOTHSES TEST

1 To identify the

perception of

corporate

customers on the

basis of gender and

marital status

towards products

and services of

J&K bank.

Demographic

profile wise

(gender, marital

status) customer

differs with regard

to perception

towards J&K

bank.

T-test


2 The objective is to

study the impact

factor of

tangibility,

reliability,

responsiveness,

assurance and

compliance on the

perception of

corporate

customers towards

products and

services of J&K

bank.

The perception of

corporate

customers towards

products and

services of J&K

bank is

significantly

predicted by

tangibility,

reliability,

assurance,

responsiveness and

compliance.

COORELATION


Chapter IV

Data analysis and interpretation


HYPOTHESES TESTING

TABLE 1: PROFILE OF RESPONDENTS

S.NO PARTICULARS DESCRIPTION FREQUENCIES PERCENTAGE

(%)

PIE-CHARTS

1 Gender Male

Female

Total

23

14

37

54.1

45.9

100.0

2 Age Below 35 years

35-45 years

Above 45 years

Total

23

9

5

37

62.2

24.3

13.5

100.0

3 Marital Status Married

Unmarried

Total

20

17

37

62.2

37.8

100.0

4 Education Illiterate

Secondary

Graduate

Total

11

7

19

37

29.7

18.9

51.4

100.0

5 Amount of loan

availed

Upto 5 lakhs

5-10 lakhs

Above 10 lakhs

Total

16

9

12

37

43.2

18.9

51.4

100.0


Table 8 above shows that male customers of J&K bank are 54.1% while females are 45.9%.

customers in the age group below 35 years are 62.2%, 35-45 years are 24.3%, and above 45

years are 13.5%, 62.2% of customers are married while 37.8% are unmarried. 29.7% of

customers are illiterate, 18.9% are secondary educated while 51.4 % are graduate. 43.2% of

customers have availed a loan of up to 5 lakhs, 18.9% in between 5-10 lakhs and 51.4% above

10 lakhs.

TABLE 2: CORRELATION COEFFICIENT RELATIONSHIP BETWEEN

RELIABILITY AND PERCEPTION OF CUSTOMERS TOWARDS PRODUCTS AND

SERVICES OF J&K BANK

S.NO R1 R2 R3 R4 R5 R6 R7

R1

Pearson Correlation

1

R2

Pearson Correlation

0.12**

1

R3

Pearson Correlation

0.04**

0.32**

1

R4

Pearson Correlation

0.37**

0.48**

0.31**

1

R5

Pearson Correlation

0.16**

0.25**

0.16**

0.20**

1

R6

Pearson Correlation

0.08**

0.49**

0.49**

0.73**

0.13*

1

R7

Pearson Correlation

0.48**

0.37**

0.48**

0.50**

0.08

0.40*

1

*Correlation is significant at 5% level of significance

** Correlation is significant at 1% level of significance

Table 2 shows the results of the correlation between 7 items of reliability and the perception of

customers towards the products and services provided by J&K Bank. The item-wise value of

Pearson correlation coefficient with perception is 0.48 (J&K Bank keeps its records accurately),


0.37 (J&K Bank employees provide services at the promised rates), 0.48 (J&K Bank offers wide

range of products and services), 0.50 (J&K bank keeps your information confidential), 0.08

(J&K Bank involves hidden policies) and 0.40 (J&K bank account is safe). Thus the hypothesis

“There is a positive association between reliability and perception towards J&K Bank’s

products and services”.


RESPONSIVENESS AND PERCEPTION OF CUSTOMERS TOWARDS PRODUCTS

AND SERVICES OF J&K BANK

S.NO RE1 RE2 RE3 RE4 RE5 RE6

RE1

Pearson Correlation

1

RE2

Pearson Correlation

0.37**

1

RE3

Pearson Correlation

0.22**

0.17**

1

RE4

Pearson Correlation

0.18*

0.31**

0.31**

1

RE5

Pearson Correlation

0.15**

0.27**

0.36**

0.29**

1

RE6

Pearson Correlation

0.88**

0.59**

0.56**

0.63**

0.13*

1



Table 3 shows the results of the correlation between 6 items of responsiveness and the perception

of customers towards the products and services provided by J&K Bank. The item-wise value of

Pearson correlation coefficient with perception is 0.88 (Employees of J&K Bank are always

willing to help customers), 0.59 (When you have problems, J&K Bank is able to solve


problems), 0.56 (Employees of J&K Bank respond to customers request promptly), 0.63 (J&K

bank provides efficient services), 0.13 (J&K Bank provides you knowledge about the available

schemes). Thus the hypothesis “There is a positive association between responsiveness and

perception towards J&K Bank’s products and services”.


ASSURANCE AND PERCEPTION OF CUSTOMERS TOWARDS PRODUCTS AND


S.NO A1 A2 A3 A4 A5 A6

A1

Pearson Correlation

1

A2

Pearson Correlation

0.715**

1

A3

Pearson Correlation

0.414*

.621**

1

A4

Pearson Correlation

.312

0.375*

.527**

1

A5

Pearson Correlation

0.098

0.210

.580**

.612**

1

A6

Pearson Correlation

0.57

0.236

.527**

.838**

.781**

1



Table 4 shows the results of the correlation between 6 items of ASSURANCE and the perception

of customers towards the products and services provided by J&K Bank. The item-wise value of

Pearson correlation coefficient with perception is 0.57 (J&K bank don‟t fully assures about the

rate of interest), 0.236 (customers aren‟t satisfied with the rate of interest charged by J&K bank),


0.527 (J&K bank provides assurance about the provisions of product and services), 0.838 (J&K

bank employees are knowledgeable), 0.781 (J&K bank provides financial advice). Thus the

hypothesis “There is a positive association between assurance and perception towards J&K

Bank’s products and services”.


COMPLIANCE AND PERCEPTION OF CUSTOMERS TOWARDS PRODUCTS AND


S.NO C1 C2 C3 C4 C5 C6 C7

C1

Pearson Correlation

1

C2

Pearson Correlation

0.693**

1

C3

Pearson Correlation

0.703*

.681**

1

C4

Pearson Correlation

.690**

0.617**

.633**

1

C5

Pearson Correlation

0.266

0.702**

.535**

.473**

1

C6

Pearson Correlation

0.593**

0.765**

.646**

.577**

.619**

1

C7

Pearson Correlation

0.259

0.6.0**

.423**

.325*

.850**

.479**

1



Table 5 shows the results of the correlation between 7 items of compliance and the perception of

customers towards the products and services provided by J&K Bank. The item-wise value of


Pearson correlation coefficient with perception is 0.259 (J&K bank don‟t Follow its policy), 0.6

(customers repay loan in time), 0.423 (customers follow rules and regulations of the bank), 0.325

(J&K bank is competent), 0.479 (J&K bank follows social responsibility). Thus the hypothesis

“There is a positive association between compliance and perception towards J&K Bank’s

products and services”.

TABLE 6: OUTPUTS FROM T-TEST

S.NO STATEMENTS DESCRIPTION MEAN T-VALUE P (significance

value)

T1 J&K Bank provides

you visually

appealing materials

associated with

services

Married

Unmarried

2.70

2.41

0.70

0.73

.002

T2 J&K Bank offers

speedy and efficient

transactions

Married

Unmarried

2.75

3.18

-1.21

-1.23

0.067

T3 J&K Bank has

convenient opening

business hours

Married

Unmarried

3.10

2.76

1.21

1.26

0.004

T4 J&K Bank offerings

(products/services)

are adequate to meet

your needs

Married

Unmarried

2.60

2.14

0.52

0.52

0.065

T5 J&K Bank

products/services are

attractive than its

competitors

Married

Unmarried

3.35

2.71

1.70

1.71

0.078


all the services

(money transfers,

insurance, savings,

Married

Unmarried

3.25

2.88

1.14

1.16

0.000


etc.)

T7 You are satisfied

with the tangibility

of products and

services

Married

Unmarried

3.95

3.12

2.40

2.42

0.064

Table 6 shows the marital status-wise mean difference in perception of customers for the items

of tangibility. Significant mean difference of perception between married and unmarried was

reported for 3 items of tangibility namely, J&K Bank provides you visually appealing materials

associated with services (.002), J&K Bank has convenient opening business hours (0.004), J&K Bank

provides all the services like, money transfers, insurance, savings, etc. (0.000) as the p value was less than

0.05. Moreover, insignificant mean difference of perception between male and female was reported as the

p-value for the other 4 items was more than 0.05, J&K Bank offers speedy and efficient transactions

(0.067), J&K Bank offerings (products/services) are adequate to meet your needs (0.065), J&K Bank

products/services are attractive than its competitors (0.078) and You are satisfied with the tangibility of

products and services (0.064). Thus the hypothesis “Marital status wise mean difference exists with

regard to the perception of tangibility of products and services of J&K Bank” stands partially accepted.

TABLE 7: OUTPUTS FROM T-TEST

S.NO STATEMENTS DESCRIPTION MEAN T-VALUE P (significance

value)


you visually

appealing materials

associated with

services

Male

Female

3.70

2.51

0.30

0.53

.001

T2 J&K Bank offers

speedy and efficient

transactions

Male

Female

4.35

2.18

0.21

0.23

0.004

T3 J&K Bank has

convenient opening

business hours

Male

Female

4.10

2.76

0.25

0.23

0.004


T4 J&K Bank offerings

(products/services)

are adequate to meet

your needs

Male

Female

2.60

4.14

0.62

0.22

0.000

T5 J&K Bank

products/services are

attractive than its

competitors

Male

Female

3.45

4.71

0.50

0.71

0.000


all the services

(money transfers,

insurance, savings,

etc.)

Male

Female

4.25

2.28

1.14

1.16

0.000

T7 You are satisfied

with the tangibility

of products and

services

Male

Female

3.85

4.32

2.40

2.42

0.032

Table 7 shows the gender-wise mean difference in perception of customers for the items of

tangibility. Significant mean difference of perception between male and female was reported for

7 items of tangibility namely, J&K Bank provides you visually appealing materials associated with

services (.001), J&K Bank has convenient opening business hours (0.004), J&K Bank provides all the

services like, money transfers, insurance, savings, etc. (0.004), J&K Bank offers speedy and efficient

transactions (0.000), J&K Bank offerings (products/services) are adequate to meet your needs (0.000),

J&K Bank products/services are attractive than its competitors (0.000) and You are satisfied with the

tangibility of products and services (0.032) as the p value was less than 0.05.. Thus the hypothesis

“Gender-wise mean difference exists with regard to the perception of tangibility of products and

services of J&K Bank” stands accepted.

:


Chapter v

Suggestions


SUGGESTIONS TO THE BANK:

Bank should educate its customers about its terms and conditions clearly. Bank shouldn‟t

involve any hidden policy while dealing with customers.

J&K bank should follow its policies in a strict manner.

Perception of married customers towards tangibility of products is good, while that of

unmarried customers is low. J&K bank should make its products and services more

appealing to its unmarried customers as they are the active spenders.

Perception of male customers towards products and services of J&K bank is good, while

that of female customers, in comparison to male customers isn‟t so significant. Thus J&K

should offer more services and products that appeal to female customers.

J&K bank should establish single window operating system. Customers feel

inconvenience while going through lengthy procedures of bank.

LIMITATION OF THE RESEARCH

Every research is limited by its imagination is true, but we definitely have some limitations on

this research. The limitations are as follows:

The study was restricted to J&K bank customers only.

The study is restricted to corporate customers residing in Jammu region only.

Considering the size of population that we have, the sample size that we have taken is

very small.

Time factor was one of big limiting factor.

Data given by the respondents are limited to their own attitude, perception, knowledge,

feeling and awareness. So generalization of this research work isn‟t possible.

Due to human behavior, element of subjectivity is present.


FUTURE SCOPE:

This research work can be extended by taking into consideration larger sample size, so

that results can be generalised.

Other banks can be included (HDFC,ICICI, PNB etc.)

Perception of private bank customer and public bank customer could also be compared.

Perception of bank employees towards banks and services could also be included.

Perception of customers residing outside J&K and using J&K bank services could be

taken into consideration.


Questionnaire


QUESTIONNAIRE

NOTE: You are requested to fill in the relevant blanks. The information collected would be

used for research purposes only.

PART 1

GENERAL INFORMATION

1 NAME OF THE CUSTOMER………………………………………………..

2 AGE: Below 35 years/ 35-45 years/ Above 45 years

3 GENDER: MALE/ FEMALE

4 MARITAL STATUS: MARRIED/ UNMARRIED

5 EDUCATION STATUS: Illiterate/ Secondary/ Graduate/ Any other

6 AMOUNT OF LOAN BORROWED: UPTO Rs. 5 lakh/ 5 lakh-10 lakh/ Above 10 lakh

PART 2

SPECIFIC INFORMATION

This part attempts to seek information on the degree of your satisfaction level with 5 options

namely 1, 2, 3, 4, 5 where 1= strongly disagree, 2= disagree, 3= indifferent, 4= agree, 5= strongly

agree.

SNO. STATEMENTS 1 2 3 4 5

A. TANGIBILITY


T1 J&K bank provides you visually appealing

materials associated with

Services

1 2 3 4 5

T2 J&K bank offers speedy and efficient

transactions

1 2 3 4 5

T3 J&K Bank has convenient opening business

hours

1 2 3 4 5

T4 J&K bank offerings (products/services) are

adequate to meet your needs

1 2 3 4 5

T5 J&K bank Products/services are attractive than

its competitors

1 2 3 4 5

T6 J&K Bank provides all the services (money

transfer, insurance, savings etc.)

1 2 3 4 5

T7 You are satisfied with the tangibility of

products and services

1 2 3 4 5

B. RELIABILITY

R1 J&K Bank keeps its records accurately 1 2 3 4 5

R2 J&K bank employees provide services at the

promised time

1 2 3 4 5

R3 J&K bank offers wide range of products and

services provided

1 2 3 4 5

R4 J&K bank keeps your information confidential 1 2 3 4 5

R5 J&K bank involves hidden policy 1 2 3 4 5

R6 J&K bank account is safe 1 2 3 4 5

R7 J&K bank is reliable 1 2 3 4 5

C. RESPONSIVENESS

RE1 Employees of J&K bank are always willing to

help

customers

1 2 3 4 5

RE2 When you have problems, J&K bank is able to 1 2 3 4 5


solve

problem and cooperate

RE3 Employees of J&K bank respond to customer

request promptly

1 2 3 4 5

RE4 J&K bank provides efficient counter service 1 2 3 4 5

RE5 J&K bank provides you knowledge about the

available schemes

1 2 3 4 5

RE6 You are satisfied with responsiveness of

employees of J&K bank

1 2 3 4 5

D. COMPLIANCE

C1 J&K bank follow its policies 1 2 3 4 5

C2 You make loan repayment on time 1 2 3 4 5

C3 You follow the rules and regulations of the

bank

1 2 3 4 5

C4 Provision of free interest loans 1 2 3 4 5

C5 J&K bank is competent than any other bank 1 2 3 4 5

C6 J&K bank follows social responsibility 1 2 3 4 5

C7 J&K bank is fully compliance 1 2 3 4 5

E. ASSURANCE

A1 J&K bank makes you fully assured about the

rate of interest

1 2 3 4 5

A2 You are satisfied with the rate of interest

charges by J&K bank

1 2 3 4 5

A3 J&K bank makes you assured about the

provision of products and services

1 2 3 4 5

A4 J&K bank employees are knowledgeable 1 2 3 4 5

A5 J&K bank provides financial advice 1 2 3 4 5

A6 J&K bank product and services are fully

assured

1 2 3 4 5


References


REFERENCES:

Gupta & Zeithaml (2006), “Customer Metrics and Their Impact on Financial Performance”

Marketing Science J., 25(6), 718–739.

Jain & Gupta (2012), “Customer Perception on Service Quality in Banking sector: With Special

Reference to Indian Private Banks”, International Journal of Research in Finance & Marketing,

Volume 2, Issue 2, ISSN NO: 2231-5985

Jessica (2011), “The Relationship between Customer Satisfaction and Service Quality: a study of

three Service sectors in Umea”, Master‟s Thesis, two-years, 30hp, Umea School of Business

Pandey, Darzi and Khaja (2014), “A Study on Customer Satisfaction towards J&K Grameen

Bank: An Empirical Study”, International Journal of Research in IT, Management and

Engineering, Volume 3, Issue 7, ISSN NO: 2249-1619

Tahir & Mushtaq‟s (2013), “An Empirical Study of Customer Satisfaction in Indian Banks: A

Case Study of Jammu & Kashmir Bank”, International Journal of Applied Services Marketing

Perspectives, Volume 2, Number 3, ISSN (P):2279-0977

http://www.jkbank.net/nri.php

Date post:	09-May-2015
Category:	Economy & Finance
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Final research

Economy & Finance