A Study on Customer Perception Towards Mahindra Finance (2)

INTRODUCTION

A study on customer perception towards Mahindra Finance 1

INTRODUCTION

The modern concepts of marketing realized that measuring consumer needs or

behavior was not enough.” Consumer Satisfaction” should be the core and then the correct

perception on which marketing policies of our organization should be built.

“Management must think of itself not as producing products but as providing customer

creating value satisfaction.”

Customer satisfaction has a vital role in sustaining and improving hold on the market.

Brief descriptions about the various measures that are needed to improve customer orientation

have also been dealt with.

Consider the fact todays customer face a plenitude of products in every category.

Customer will be having high and raising expectation of quality and service. In the face of their

vast choices, the customer will gravitate to the offering that the best meet their individual needs

and expectation. They will buy one of the bases of their perception value.

Therefore it is not surprising that today’s winning companies are those succeed best in

satisfying indeed delighting their target customer. They pay extreme attention to quality and

service to meeting and even exceeding customer expectation. They complete vigorously and at

the co-operated smartly with their strategy partners in their supply and distribution chain. They

pursue efficiently and yet are responsible and flexible.

Customer satisfaction is the outcome felt by buyers who have expectation. Customers are

satisfied when their expectation are met and delighted when their expectations are exceeded.

Satisfied customers remain loyal longer, buy more, and are less sensitive and talk favorable

about the company. From this it is clear that the satisfied customer will be less sensitive towards

the fluctuating price and offensive marketing typically cost more than defensive marketing,

because it requires much effort and cost to induce satisfied customers to switch away from their

current suppliers. We should also consider the fact that “the cost of attracting a new customer

may be five times the cost of keeping the current customer happy.” Therefore the companies are

intending in developing stronger bones and loyalty with their customers.


DEFINITION OF CUSTOMER SATISFACTION

Customer satisfaction refers to the extent to which customers are happy with the products

and services provided by a business. Customer satisfaction levels can be measured using survey

techniques and questionnaires

DEFINITIONS:

Definition 1: Customer satisfaction is equivalent to making sure that product and service

performance meets customer expectations.

Definition 2: Customer satisfaction is the perception of the customer that the outcome of a

business transaction is equal to or greater than his/her expectation.

Definition 3: Customer satisfaction occurs when acquisition of products and/or services

provides a minimum negative departure from expectations when compared with other

acquisitions. Gaining high levels of customer satisfaction is very important to a business because

satisfaction customers are most likely to be loyal and to make repeat orders and to use a wide

range of services offered by a business There are many factors which lead in high levels of

customer satisfaction including. Products and services which are customer focused and hence

provide high levels of value for money. What is clear about customer satisfaction is that

customers are most likely to appreciate the goods and services that they buy if they are made to

feel special. This occurs when they feel that the products and services that they buy have been

specially produced for them or for people like them.

BENEFITS OF CUSTOMER SATISFACTION

The importance of customer satisfaction and support is increasingly becoming a vital business

issue as organization realize the benefits of Customer Relationship Management (CRM) for

providing effective customer service. Professionals working within customer focused business

or those running call centres or help desks, need to keep informed about the latest customer

satisfaction techniques for running a valuable customer service function. From small customer

service departments to large call centres, the importance of developing a valued relationship

with customers using CRM is essential to support customer and long-term business growth.


What Do Customers Want?

Before we begin to create tools to measure the level of satisfaction, it is important to develop a

clear understanding of what exactly the customer wants. We need to know what our customers

expect from the products and services we provide.

Customer expectations have two types –

Expressed

Implied

Expressed Customer Expectations are those requirements that are written down in the contract

and agreed upon by both parties for example, product specifications and delivery requirements.

Supplier’s performance against these requirements is most of the items directly measurable.

Implied Customer Expectations are not written or spoken but are the ones the customer would

‘expect’ the supplier to meet nevertheless. For example, a customer would expect the service

representative who calls on him to be knowledgeable and competent to solve a problem on the

spot. There are many reasons why customer expectations are likely to change overtime. Process

improvements, advent of new technology, changes in customer’s priorities, improved quality of

service provided by competitors are just a few examples. The customer is always right.

Supplier’s job is to provide the customer what he/she wants, when he/she wants it. Customer

satisfaction is customer’s perception that a supplier has met or exceeded their expectations.

3.3 WHAT CONSTITUTES SATISFACTION?

We cannot create customer satisfaction just by meeting customer’s requirements fully because

these have to be met in any case. However failing short is certain to create dissatisfaction

Major Attributes of customer satisfaction in banking industry

Can be summarized as:

Product quality

Premium Outflow

Return on Investment

Services

Responsiveness and ability to resolve complaints and reject reports.

Overall communication, accessibility and attitude.

WHAT ARE THE TOOLS?

Customer expectations can be identified using various methods such as:

Periodic contract reviews


Market research

Telephonic interviews

Personal visits

Warranty records

Informal discussions

Satisfaction surveys

Depending upon the customer base and available resources, we can choose a method that is most

effective in measuring the customer’s perceptions. The purpose of the exercise is to identify

priorities for improvements. We must develop a method or combination of methods that helps to

continually improve service.

3.4 CUSTOMER SATISFACTION SURVEYS

Formal survey has emerged as by far the best method of periodically the customer satisfaction.

The survey are not marketing tools but an information—gaining tool. Enough homework needs

to be before embarking on the actual survey. This includes:

Defining Objectives of the Survey

Design Survey approach

Develop questionnaires and forms

Administer Survey (Email, Telephone or Post)

Method of compiling data and analysing the findings

Format of the report to present the findings

There is no point in asking irrelevant questions on a customer satisfaction questionnaire. The

basic purpose is to find out what we are doing right or wrong. Where is the scope for

improvement, where do we stand vis-à-vis other suppliers. How we can serve the customer

better?

A customer satisfaction measurement survey should at least

Identify the following objectives:

Importance to customers (Customers priorities)

Customer’s perception of supplier’s performance

Your performance relative to customer’s priorities.

Priorities for improvement

Survey forms should be easy to fill out with minimum amount of time and efforts on customer’s

part. They should be designed to actively encourage the customer to complete the questions. Yet

they must provide accurate data should also be sufficiently reliable for management decision


making. This can be achieved by incorporating objective type questions where customer has to

“rate” on scale of say 1 to 10. For repeated surveys, you could provide the rating that was

previously accorded by the customer. This works like a reference point for the customer.

Space should always be provided for the customers own opinions this enables them to state any

additional requirements or report any shortcomings that are not covered by the objective

questions. Normally, we deal various personnel at various levels in the customer’s organization

—the buyer, user, receiving inspector, finance and purchase person etc. surveying a number of

respondents for each customer gives a complete perspective of customer satisfaction. It may be

necessary to device a different questionnaire for each of them. Respondents must be provided a

way to express the importance they attach to various survey parameters. Respondents should be

asked to give a weighting factor, again on a rating scale of say, 1 to 10, for each requirement.

This gives a better indication of relative importance of each parameter towards overall customer

satisfaction and makes it easier for suppliers to prioritize their action plans by comparing the

performance rating (scores) with importance rating (weighing).


NEED FOR THE STUDY


NEED FOR THE STUDY

To identify the satisfaction level of customer towards different types of service attributes,

by identifying their critical factors.

To study about the bank about their customized products and services, according to the

consumer’s needed.

To study the experience and expectations of the existing customers.

To study to improve the current standards of services.

To study the scope of introducing new types of services.

To study about the business tactics followed to stand against the competitors.


STATEMENT OF THE

PROBLEM


STATEMENT OF THE PROBLEM

This Study will help us to understand the consumer’s satisfaction about banking services

and products. This study will help banks to Understand, how a consumer selects,

organizes and interprets the Quality of service and product offered by banks. The market

is more aware and realistic about investment and returns From financial products. In this

background this study tries to analyze The customer satisfaction towards banking

services in general and MAHINDRA FINANCE In particular.


INDUSTRY PROFILE


ORGANIZATION PROFILE


STATEMENT OF THE

OBJECTIVES


OBJECTIVE OF THE STUDY

PRIMARY OBJECTIVE

To study, analyze and evaluate the customer satisfaction level towards the different

services rendered by MAHINDRA FINANCE and to identifying the critical success factors.

SECONDARY OBJECTIVES

To evaluate the awareness level of the customer on the product and services.

To find out the differences among perceived service and expected service.

To evaluate the process efficiency in customer query and requirement handling

To understand consumer’s preferences.

To access the degree of satisfaction of the customers


REVIEW OF LITERATURE


1. According to “Powpaka, Samart” October 19 –1996 Statethat the influence of

outcome quality on customers' perceptions of overall service quality are studied.

Results show that outcome quality has a strong influence on customers' overall

service quality assessment. Outcome quality is also most important in services with

search and experience outcome quality attributes. A model to enable marketing

managers to evaluate customers' perceptions of service quality is also discussed.

2. According to “Lee, Haksik, Lee, Yongki, Yoo, Dongkeun “March 24 – 2002 State

that the Performance as perceived by customers rather than the difference between that

perception and the customer's prior expectations explains more the variation in service

quality. It is the customer's satisfaction that leads to perceived quality of service rather

than the reverse. More emphasis on responsiveness is expected to be placed on people-

based services than on equipment and facility based services.

3. According to “CBA REPORT” June 12 - 2005state that the Private Finance industry

had a better than average score for customer satisfaction over the past year, according to

the latest report by American Customer Satisfaction Index (ACSI).

The score for how well the banking industry is doing overall (75, unchanged from last

year), compares to the overall Level of satisfaction in the US economy, representing all

companies and industries measured by the ACSI, which stands at 74.3, so the banking

industry is doing slightly better than the average of all consumer goods and services.

Established in 1994, ACSI is a uniform and independent measure of household

consumption experience, which tracks trends in customer satisfaction and provides

benchmarking insights of the consumer economy. The ACSI is produced by the Business

School at the University of Michigan, in partnership with the American Society for

Quality (ASQ) and the international consulting firm, CFI Group.

ACSI says their scores are a leading indicator of future consumer buying. "High

satisfaction scores make it easier for banks to increase their relationships with their

customers and sell them more products and services; low satisfaction has the opposite

effect. In general, this translates into a prediction of changes in revenues," according to

ACSI.


4. According to “Robert W. Armstrong, Tan Boon Seng” September 2 2005 state

that Extends the current understanding of customer satisfaction at the business-to-

business level in the Asian finance industry. The main thrust of the paper is an attempt to

conceptualize a comprehensive model of satisfaction at the business-to-business level

incorporating guanxi (Chinese business relationships), relationship marketing and the

disconfirmation paradigm. The essence of the research highlighted the importance of

relational constructs, in addition to the disconfirmation paradigm, in impacting customer

satisfaction at the business-to-business level in the Singapore banking industry. At the

business-to-business level in the Asian context, the disconfirmation paradigm is still the

predominant paradigm influencing the customer satisfaction process. Relationship

marketing and guanxi are significant in our comprehensive model of corporate-customer

satisfaction. Relationship marketing was found to have both a direct and an indirect

impact (through disconfirmation) on corporate-customer satisfaction. Guanxi was found

to exert an indirect impact on satisfaction as opposed to the initial hypothesized direct

impact on satisfaction.

5. According to “Luis Moutinho, Douglas T. Brownie” November 24 2008 State that

the nature and direction of the satisfactions that are delivered to customers of bank

services are explored, and the criteria used to evaluate these services are highlighted. The

non-metric multidimensional scaling technique enabled respondents' perceptions to be

represented spatially. It is revealed that respondents had high levels of satisfaction with

regard to the location and accessibility of branches and ATMs, and acceptance of the

current levels of banking fees; but expressed some caution in their evaluation of new and

improved services.

6.According to“ U.S. Bank” June 2 -2008 State that the MINNEAPOLIS - (Business

Wire) U.S. Bank customers are increasingly loyal and satisfied, and they consider U.S.

Bank’s services to be of high quality and value according to the American Customer

Satisfaction Index (ACSI) research conducted in the fourth quarter of 2009.

U.S. Bank surpassed industry averages and topped the four largest banks in the country

in customer satisfaction, customer expectations, perceived quality, perceived value and

customer loyalty.U.S. Bank scored 77 in overall ACSI customer satisfaction,


compared to the next highest reported score of 73 and the industry average of 75. U.S.

Bank exceeded reported industry averages in the important categories of loyalty, quality

and value by seven or more points.

“We’ve experienced a flight to quality for many months, and now these results are

evidence of our success," said Richard Davis, chairman, president and chief executive

officer of U.S. Bancorp. “Our company has been a source of strength and stability and as

these scores demonstrate, customers are taking notice. At U.S. Bank, they find high

quality service and value, and perhaps most importantly, our customers are very loyal.

As now the fifth largest commercial bank in the United States with the fourth largest

branch network, we are very pleased with our results, and we know that this positive

momentum is just the beginning. We are focused on customer loyalty with a number of

new programs aimed at moving us from very good to great.”

ACSI independently surveys customers of the largest companies in consumer goods and

services industries. U.S. Bank has engaged ACSI to survey its retail customers over the

last several years and continues to improve its scores.

7. According to” D.M. Mahaptra” The business line April 11 - 2008(page4) State

that

The working of the customer's mind is a mystery which is difficult to solve and

understanding the nuances of what customer satisfaction is, a challenging task. This

exercise in the context of the banking industry will give us an insight into the parameters

of customer satisfaction and their measurement. This vital information will help us to

build satisfaction amongst the customers and customer loyalty in the long run which is

an integral part of any business. The customer's requirements must be translated and

quantified into measurable targets. This provides an easy way to monitor improvements,

and deciding upon the attributes that need to be concentrated on in order to improve

customer satisfaction. We can recognize where we need to make changes to create

improvements and determine if these changes, after implemented, have led to increased

customer satisfaction. "If you cannot measure it, you cannot improve it." - Lord

William Thomson Kelvin (1824-1907).


8. According to “M. SadiqSohail and Balachandran Shanmugham” march 23 -2003

State that

the paper examines the current trends in the e-commerce revolution that has set in

motion in the Malaysian banking sector and reports on an empirical research that was

carried out in Malaysia to study the customers’ preference for electronic banking and the

factors, which they considered influenced the adoption of electronic banking. Results

based on the analysis of data relating to 300 respondents indicate that while there is no

significant differences between the age and educational qualifications of the electronic

and conventional banking users, some differences exists on other demographic variables.

Analysis further reveals that accessibility of Internet, awareness of e-banking, and

customers’ reluctance to change are the factors that significantly affected the usage of e-

banking in Malaysia. The paper discusses on the implications of these. Limitations of the

study are highlighted and further research directions are suggested.

9. According to “Lee, Ming Chang; Hwan, Ing San”-Tokyo December 1, 2005 State

that the

This study examines whether there are economic benefits to be gained from improving

service quality in the Taiwanese banking industry. Service quality is perceived quality;

and different from objective or actual quality; being a judgment usually made within a

customer evoked set. Service quality resembles an attitude in many ways, and service

quality is distinct from customer satisfaction. Traditional financial ratios are not

appropriate for measuring the economic benefits of service quality improvement.

10. According to “Stellenbosch” London March 12 - 2004State that the Measuring

user satisfaction with information systems has attracted widespread research attention,

given it is often used as an indicator of success. The Internet has allowed applications to

be extended to customers of an organization, where interaction can take place through a

web site, typically from home or office. The focus of attention with such applications is

customer satisfaction. In this research, a 21-item, 7-factor instrument developed to

measure customer satisfaction with web sites that market generic digital products and

services was modified slightly, and then empirically tested and validated in the context

of Internet banking specifically. A 19-item, 5-factor validated instrument emerged, the

factors being Customer Support, Security, Ease of Use, Transactions and Payment, and

Information Content and Innovation. The difference in number of factors as compared to


the generic instrument was attributed to the unique nature of Internet banking web sites.

These and other findings are discussed in the paper, and their implications examined.

11. According to “Nan-Hong Lin, Wen-Chun Tseng, Yu-Chung Hung, David C.

Yen” Tokyo March 9 – 2008State that the Soon after becoming a WTO member,

Taiwan found the internationalization and liberalization in the financial industry ushered

its domestic banks into a new era. In response to this global trend, all its banks strove to

rely on customer relationship management (CRM) to enhance customer value (CV). This

study aims to probe further into the connection between CV and CRM. A series of

examinations revealed that (1) both functional and social value impact customer behavior

directly and positively; (2) customer satisfaction positively and directly affects customer

loyalty; (3) a positive and direct relationship exists between customer loyalty and

customer behavior; and (4) the positive and significant relationship between CV and

customer behavior can be developed through mediators such as customer satisfaction and

customer loyalty. Consequently, banks should offer their customers different services,

products, and marketing channels to meet their diversified needs to cultivate a win-win

environment of CRM for both parties.

12. According to “Alessandro Arbore and Bruno Busacca” June 28 -2008 State that

The paper presents the results of an extensive study on the determinants of customer

satisfaction for a retail bank. In doing so, it uses a revised version of the traditional

analyses based on derived measures of attribute importance. The need for a revised

methodology is prompted by the insights of the two- and three-factor theories of

customer satisfaction, such as Kano's framework. Indeed, the evidence from 5000

customers of a prominent Italian bank confirms a non-linear and asymmetric relationship

between attribute performances and overall customer satisfaction. The results from both

a traditional and our revised approach are compared. While this approach can be applied

across different industries, it should not be assumed that the numerical results presented

in the paper apply to contexts with substantially different underlying characteristics.

General trends and implications for banking services are reported.

13. According to “Pratap K.J. Mohapatra” January 19 -2009 State that


The article examines whether service quality of Indian commercial banks increases

customer satisfaction that fosters customer loyalty. Data were collected from 350 valued

customers of scheduled commercial bank branches in Orissa (India). A questionnaire

elicited information on socio–demographic variables along with human, technical, and

tangible aspects of service quality, customer satisfaction, and loyalty. Results suggest

that better human, technical and tangible aspects of service quality of the bank branches

increase customer satisfaction. Human aspects of service quality were found to influence

customer satisfaction more than the technical and tangible aspects. Customer satisfaction

furthers customer loyalty. Increase in service quality of the banks can satisfy and retain

customers. In the Indian banking sector, human aspects are more important than

technical and tangible aspects of service quality that influence customer satisfaction and

promote and enhance customer loyalty.

14. According to “Megha TriveditheEconomics times” December 7 2009 (Page 7)

State that the

Customer satisfaction has become a major source of concern in retail banking business.

With exceptional progress in the establishment of banks in India, banks are increasingly

interested in retaining existing customers and targeting new customers. In this paper, it is

proposed that quality of service is an indicator of customer satisfaction. Measuring

service quality involves objective feedback about existing customers of ICICI bank with

respect to their expectations and services offered. Performance of a bank may be

evaluated with regard to a set of satisfaction parameters that indicate the strengths and

weaknesses of an organization. Standard scale of SERVQUAL developed by

Parasuraman et al. has been used to conduct the survey. This study is based on five

overall dimensions of customer satisfaction with services provided by ICICI. The five

dimensions used to measure service quality are tangibility, reliability, responsiveness,

assurance and empathy. This study gives useful insights to boost customer satisfaction

towards ICICI.

15. According to “RajKumar the Hindu” Aug 7 – 2008 State that

The banking industry like many other financial service industries is facing a rapidly

changing market, new technologies, economic uncertainties, fierce competition and more

demanding customers and the changing climate has presented an unprecedented set of


challenges (1). Banking is a customer oriented services industry, therefore, the customer

is the focus and customer service is the differentiating factors (2).

The banking industry in India has undergone sea change since post-independence. More

recently, liberalization, the opening up of the economy in the 90s and the government's

decision to privatize banks by reduction in state ownership culminated in the banking

reforms based on the recommendations of Narasimha Committee (3). The prime mover

for banks today is profit, with clear indications from the government to 'perform or

perish'. Banks have also started realizing that business depends on client service and the

satisfaction of the customer (4) and this is compelling them to improve customer service

and build up relationship with customers.

With the current change in the functional orientation of banks, the purpose of banking is

redefined. The main driver of this change is changing customer needs and expectations.

Customers in urban India no longer want to wait in long queues and spend hours in

banking transactions. This change in customer attitude has gone hand in hand with the

development of ATMs, phone and net banking along with availability of service right at

the customer's doorstep. With the emergence of universal banking, banks aim to provide

all banking product and service offering less than one roof and their endeavor is to be

customer centric (5). With the emergence of economic reforms in world in general and in

India in particular, private banks have come up in a big way with prime emphasis on

technical and customer focused issues.

16. According to G. Mihelis6 Feb 2009 Commercial Bank of Greece states that

Customer satisfaction represents a modern approach for quality in enterprises and

organizations and serves the development of a truly customer-focused management and

culture. Measuring customer satisfaction offers an immediate, meaningful and objective

feedback about clients’ preferences and expectations. In this way, company’s

performance may be evaluated in relation to a set of satisfaction dimensions that indicate

the strong and the weak points of a business organization. This paper presents an original

customer satisfaction survey in the private bank sector. The implemented methodology is

based on the principles of multicriteria analysis and preference disaggregation modeling.

The most important results are focused on the determination of the critical service

dimensions and the segmentation to customer clusters with distinctive preferences and

expectations.


RESEARCH METHODOLOGY


REASERCH METHODOLOGY

4.1 RESEARCH DESIGN:

A descriptive study tries to discover answers to the questions who, what, when, where,

and, sometimes, how. The researcher attempts to describe or define a subject, often by

creating a profile of group of problems, people, or events. Such studies may involve the

collection of data and the creation of a distribution of the number of times the researcher

observes a single Event or characteristic (the research variable), or they may involve

relating the interaction of two or more variables. Organizations that maintain databases

of their employees, customers, and suppliers already have significant data to conduct

descriptive studies using internal information. Yet many firms that have such data files

do not mine them regularly for the decision-making insight they might provide.

This descriptive study is popular in business research because of its versatility across

disciplines. In for-profit, not-for-profit and government organizations, descriptive

investigations have a broad appeal to the administrator and policy analyst for planning,

monitoring, and evaluating. In this context, how questions address issues such as

quantity, cost, efficiency, effectiveness, and adequacy. Descriptive studies may or may

not have the potential for drawing powerful inferences. A descriptive study, however,

does not explain why an event has occurred or why the variables interact the way they

do.

4.2 SAMPLING

Convenience sampling method is used for the survey of this project. It is a non-

probability sample. This is the least reliable design but normally the cheapest and easiest

to conduct .In this method Researcher have the freedom to choose whomever they find,

thus the name convenience. Example includes informal pools of friendsand neighbors or

people responding to a newspaper’s invitation for readers to state their position on some

public issue.


4.2.1. SAMPLE SIZE

Sample size denotes the number of elements selected for the study. For the present study,

100 respondents were selected at random. All the 100 respondents were the customers of

Mahindra Finance

4.3 SAMPLING METHOD

A sample is a representative part of the population. In sampling technique, information is

collected only from a representative part of the universe and the conclusions are drawn

on that basis for the entire universe. A convenience sampling technique was used to

collect data fromthe respondents.

4.4 QUESTIONNARIE DESIGN:

The questionnaire consists of 2 types of questions.

i) open ended

ii) Closed ended.

OPEN ENDED QUESTION

This refers to a question that has no fixed alternatives to which the answer must confirm.

The respondent answers in his own words and at any length they choose.

CLOSED ENDED QUESTION

It contains those questions in which the respondent is given a limited number of

alternatives responses from which he/she is to select the one that most closely matches

his attitude.

The fixed alternative questions may be taken in the form of

Dichotomous questions

Multi-choice questions

Dichotomous questions


It refers to one, which offers the respondent a choice between only 2 alternatives and

reduces the issues to its simplest terms.

Multi-choice questions

A multiple-choice question refers to one, which provides several set of alternatives.

Multiple-choice questions can be used when an issue has more than two aspects.

4.5. METHOD OF DATA COLLECTION

To know the response, the researcher used questionnaire method. It has been designed as

a primary research instrument. Questionnaires were distributed to respondents and they

were askedto answer the questions given in the questionnaire. The questionnaires were

used as an instrumentation technique, because it is an important method of data

collection. The success of the questionnaire method in collecting the information

depends largely on proper drafting. So in the present study questions were arranged and

interconnected logically. The structured questionnaire will reduce both interviewers and

interpreters bias. Further, coding and analysis was done for each question’s response to

reach into findings, suggestions and finally to the conclusion about the topic.

4.6. TYPES OF DATA

Every decision poses unique needs for information, and relevant strategies can be

developed based on the information gathered through research. Research is the

systematic objective and exhaustive search for and study of facts relevant to the problem

Research design means the framework of study that leads to thecollection and analysis of

data. It is a conceptual structure with inwhich research is conducted. It facilitates smooth

sailing of various research operations to make the research as effective as possible.

4.6.2PRIMARY DATA

Primary data are those collected by the investigator himself for thefirst time and thus

they are original in character, they are collected for particular purpose.A well-structured

questionnaire was personally administrated to theselected sample to collect the primary

data.

4.6.3SECONDARY DATA


Total No. of Customers

Secondary data are those, which have already been collected by someother persons for

their purpose and published. Secondary data areusually in the shape of finished products.

Two types of secondary data were collected for the preparation of theproject work:

Internal Data was generated from company’s brochures, manualsand annual reports

External Data, on the other hand, was generated from magazines, research books,

intranet and internet (websites).

4.7 TOOLS USED FOR ANALYSIS OF DATA

1. Simple percentage analysis

4.7.1SIMPLE PERCENTAGE ANALYSIS

Percentage refers to a special kind of ratio percentage are used to describe relationship.

Percentage=

4.8 SCOPE OF THE STUDY

This study is limited to the customers with in kerala only. The study will be able to

reveal the preferences, needs, satisfaction of the customers regarding the banking

services, It also help banks to know whether the existing products or services they are

offering are really satisfying the customers’ needs.

4.9 LIMITATIONS OF THE STUDY

Although the study was carried out with extreme enthusiasm and careful planning there

are several limitations, which handicapped the research vise,

1. Time Constraints:

The time stipulated for the project to be completed is less and thus there are chances that

some information might have been left out, however due care is taken to include all the

relevant information needed.


No. of. Customers x 100

2. Sample size:

Due to time constraints the sample size was relatively small and would definitely have

been more representative if I had collected information from more respondents.

3. Accuracy:

It is difficult to know if all the respondents gave accurate information; some respondents

tend to give misleading information.

4. It was difficult to find respondents as they were busy in their Schedule and collection

of data was very difficult. Therefore, the study had to be carried out based on the

availability of respondents


DATA ANALYSIS

&

INTERPERTATION


DATA ANALYSIS & INTERPRETATION

DATA ANALYSIS

Analysis is the process of placing the data in an ordered form, combining them with the existing

information and extracting the meaning from them. In other words analysis is an answer to the

questions what message is conveyed by each group of the data “which are otherwise raw facts

are unable to give meaning full information. A raw data become an information only when they

are analyzed and put in a meaning form.

INTERPRETATION

Interpretation is a process of relating various bits of information to existing information.

Interpretation attempts to answer well, what relation existing between the findings to research

objectives and hypothesis framed for the study in the beginning.


TABLE 6.1

TYPE OF ACCOUNT TO OPERATE WITH BANK

SL. NO ACCOUNT TYPE NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1 Saving Account 58 58%

2 Current Account 22 22%

3 Fixed Deposit 17 17%

4 NRI Account 13 13%

Analysis: From the above table it could be inferred that 58% of the customers are choosing

savings account and very few of about 13% prefer NRI Account.

Interpretation: Most of the respondents are preferring savings account. Presently the bank

offers varieties of account services to the customer.


CHART 6.1

Saving Account Current Account Fixed Deposit NRI Account0

10

20

30

40

50

60

70

58%

22%17%

13%

Account Type

Account Type


TABLE 6.2

Facility Level of MAHINDRA FINANCE

SL. NO FACILITY LEVEL NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1 Excellent 27 27%

2 Good 43 43%

3 Satisfactory 23 23%

4 Poor 7 7%

Total 100 100%

Analysis: From the above table it could be inferred that 43% of the customers are satisfied with

the service and quality of products of their bank. Only 7% of customers are says poor facility in

MAHINDRA FINANCE.

Interpretation: Most of the respondents say MAHINDRA FINANCE offering good facility to

its customer. But to the other end few people says the facilities are less.


CHART 6.2

Excellent Good Satisfactory Poor0

5

10

15

20

25

30

35

40

45

50

27%

43%

23%

7%

FACILITY LEVEL

FACILITY LEVEL


TABLE 6.3

MAHINDRA FINANCE’s Value Added Service

SL. NO VALUE ADDED

SERVICE

NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1 Senior Citizen 57 57%

2 Prepaid Cards 24 24%

3 Fixed Deposit 7 19%

Total 100 100%

Analysis: From the above table it could be inferred that 57% of the customers are using senior

citizen service and only 19% are using fixed deposit scheme.

Interpretation: Most of the respondents are utilizing the value added service as senior citizen

accounts. But rarely very few people are choosing recurring deposit account.


CHART 6.3

Young Star Senior Citizen Prepaid Cards Recurring Deposit

0

10

20

30

40

50

60

12%

57%

24%

7%

VALUE ADDED SERVICE

VALUE ADDED SERVICE

TABLE 6.4


Product Ratings of MAHINDRA FINANCE from Others

SL. NO PRODUCT

RATING

NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1 Excellent 16 16%

2 Good 62 62%

3 Better 20 20%

4 Poor 2 2%

Total 100 100%

Analysis: From the above table it could be inferred that 62% of the customers rate MAHINDRA

FINANCE products as Good. Only 2% of the people Rate MAHINDRA FINANCE products as

Poor.

Interpretation: Most of the respondents are rating the products as good. Moderate peoples are

rating as excellent. Only few people in the customers are rating the MAHINDRA FINANCE

products as poor.


CHART 6.4

Excellent Good Better Poor0

10

20

30

40

50

60

70

16%

62%

20%

2%

Product Rating

Product Rating

TABLE 6.5

REFERRING MAHINDRA FINANCE TO OTHERS


SL. NO REFERRING

MAHINDRA

FINANCE

NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1 Yes 76 76%

2 No 18 18%

3 Not Sure 6 6%

Total 100 100%

Analysis: From the above table it could be inferred that 76% of the customers are ready to refer

MAHINDRA FINANCE to others. Only 6% of customers are not sure what to do.

Interpretation: Most of the respondents are obviously ready to refer Mahindra Finance to their

friends, relatives and others. But few of them are not sure on this decision also some people are

straight forward in not referring Mahindra Finance to others.

CHART 6.5


Yes No Not Sure0

10

20

30

40

50

60

70

80

76%

18%

6%

Referring Mahindra Finance

Referring IOB

TABLE 6.6

RELATIONSHIP WITH MAHINDRA FINANCE A/C OPERATIONS


SL. NO MAHINDRA

FINANCE

ACCOUNT

OPERATIONS

NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1 < 1 Year 17 17%

2 1-5 Years 55 55%

3 5-10 Years 17 17%

4 >10 Years 11 11%

Total 100 100%

Analysis: From the above table it could be inferred that 55% of the customers are having

relationship with the bank for about 1-5 years. Only 11% of customers are having more than 10

years of relationship with Mahindra Finance.

Interpretation: Most of the respondents are satisfied with the service offered by Mahindra

Finance. Presently the bank has more customers who have the account with them for more than

a year and less than 5 years.

CHART 6.6


< 1 Year 1-5 Years 5-10 Years >10 Years0

10

20

30

40

50

60

17%

55%

17%

11%

MAHINDRA FINANCE ACCOUNT OPER-ATIONS

IOB ACCOUNT OPERATIONS


TABLE 6.8

Best Insurance Product in MAHINDRA FINANCE

SL. NO INSURANCE

PRODUCT

NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1 Tax Saver 15 15%

2 Investment 20 20%

3 Security 5 5%

4 All the Above 60 60%

Total 100 100%

Analysis: From the above table it could be inferred that 60% of the customers choose the entire

insurance product for their benefits. Only 5% of the customers choose the insurance product

offered them security.

Interpretation: Most of the respondents are investing in MAHINDRA FINANCE for tax

saving, investment and security for their money. This shows that the customers believe

MAHINDRA FINANCE has a best insurance market in India.

CHART 6.8


Tax Saver Investment Security All the Above0

10

20

30

40

50

60

70

15%20%

5%

60%

INSURANCE PRODUCT

INSURANCE PRODUCT

TABLE 6.9

OTHER MAJOR SERVICES IN MAHINDRA FINANCE


SL. NO OTHER SERVICES

IN MAHINDRA

FINANCE

NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1 Vehicle loan 16 16%

2 Home loan 54 54%

3 Personal loan 23 23%

4 Bond 7 7%

Total 100 100%

Analysis: From the above table it could be inferred that 54% of the customers feel the home

loan is the service other than the general service. Only 7% of the people prefer to Forex

exchange.

Interpretation: Most of the respondents are utilizing the additional service of home loan

fascilities from MAHINDRA FINANCE. But only few people are utilizing the personal loan ,

bond and other services from MAHINDRA FINANCE.


CHART 6.9

1 Vehicle loan

2 Home loan 3 Personal loan

4 Bond 4 Total

NUMBER OF RESPONDENTS

16 54 23 7 100

PERCENTAGE OF RESPON-DENTS

0.16 0.54 0.23 0.07 1

1030507090

110

Chart Title

Axis Title


TABLE 6.12

AWARNESS AND SATISFACTION LEVEL OF VARIOUS LOANS

SL. NO LOAN SCHEME NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1 Vehicle loan 8 8%

2 Personal loan 15 15%

3 Home loan 72 72%

4 SME Loan 5 5%

Total 100 100%

Analysis: From the above table it could be inferred that 72% of the customers are aware of the

Home Loan. Only 5% of the customers are not sure on the SME loan.

Interpretation: Most of the respondents are Aware about the home loan in Mahindra Finance.

But few customers are not so.


CHART 6.12

1 Vehicle loan

2 Per-sonal loan

3 Home loan

4 SME Loan

4 Total

NUM-BER OF RE-SPONDENTS

8 15 72 5 100

PER-CEN-TAGE OF RE-SPONDENTS

0.08 0.15 0.72 0.05 1

105090

Chart Title

Axis Title


TABLE 6.13

LOCKER FACILITY AVAILING CUSTOMER

SL. NO LOCKER

FACILITY

PREFERENCE

NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1 Business People 50 50%

2 Government Staff 30 30%

3 Bank Staff 13 13%

4 House Wife’s 7 7%

Total 100 100%

Analysis: From the above table it could be inferred that 50% of the customers using locker

facility are business class people. Only 7% of the customers are house wife’s using locker

facility.

Interpretation: Most of the respondents say they are utilizing the locker facility in Mahindra

Finance. The main players are business class people. Followed by government staff’s and then

bank staff’s.


CHART 6.13

Business People

Government Staff

Bank Staff House Wife’s0

10

20

30

40

50

60

50%

30%

13%7%

LOCKER FACILITY PREFERENCE

LOCKER FACILITY PREFERENCE


TABLE 6.14

RELATIONAL SHIP BETWEEN BANKER & CUSTOMER

SL. NO RELATIONSHIP

BETWEEN BANK

& CUSTOMER

NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1 Good 13 13%

2 Moderate 58 58%

3 Better 9 9%

4 Poor 20 20%

Total 100 100%

Analysis: From the above table it could be inferred that 58% of the customers are have

moderate relationship with Mahindra Finance. Only 9% of the customers feel relationship

between bank & customer is better.

Interpretation: Most of the respondents are having a moderate relationship between the bank &

customer. But few customers are feeling it is better and some feel it is poor in relationship.


CHART 6.14

Good Moderate Better Poor0

10

20

30

40

50

60

70

13%

58%

9%

20%

RELATIONSHIP BETWEEN BANK & CUSTOMER

RELATIONSHIP BETWEEN BANK & CUSTOMER


TABLE 6.15

FIXED DEPOSIT INTEREST RATE SLAB OF MAHINDRA FINANCE FROM OTHER

BANKS

SL. NO FIXED DEPOSIT

RATE

NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1 2- 3% 5 5%

2 3- 4% 27 27%

3 5- 10% 40 40%

4 Above 10% 28 28%

Total 100 100%

Analysis: From the above table it could be inferred that 40% of the customers are satisfied with

the interest rate slab. Only 5% of customers are not satisfied.

Interpretation: Most of the respondents are satisfied with the fixed rate slab with the bank.

Hence it is offering the interest rate at minimum level. Also few people are not aware of the

interest rate of fixed deposit in Mahindra Finance.


CHART 6.15

2- 3% 3- 4% 5- 10% Above 10%0

5

10

15

20

25

30

35

40

45

5%

27%

40%

28%

FIXED DEPOSIT RATE

FIXED DEPOSIT RATE


TABLE 6.16

OPINION ABOUT THE CHARGES LEIVED BY MAHINDRA FINANCE

SL. NO CHARGES LEIVED

BY MAHINDRA

FINANCE

NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1 High 26 26%

2 Moderate 64 64%

3 Low 10 10%

Total 100 100%

Analysis: From the above table it could be inferred that 64% of the consumers feel that the

charges are high comparatively from other banks. Only 10% of consumers are not satisfied in

charges levied by Mahindra Finance.

Interpretation: Most of the respondents are not satisfied the charges levied by Mahindra

Finance. Customers are expecting the charges to be reduced to get more benefit from the bank.


CHART 6.16

High Moderate Low0

10

20

30

40

50

60

70

26%

64%

10%

CHARGES LEIVED BY MAHINDRA FINANCE

CHARGES LEIVED BY IOB

TABLE 6.17


HOW DO YOU KNOW MAHINDRA FINANCE

SL. NO HOW YOU

KNOW MAHINDRA

FINANCE

NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1 Advertisement’s 20 20%

2 Friends & Relatives 61 61%

3 Awareness 18 18%

4 Direct Selling Agents 1 1%

Total 100 100%

Analysis: From the above table it could be inferred that 61% of the consumers are referred by

friends & relatives for the best service offered by Mahindra Finance. Only 1% of consumers are

came by direct selling agents.

Interpretation: Most of the respondents tell they are referred by their friends and relatives.

Where very few came by the advertisements and the awareness created by the bank. Very less in

count are generated by direct selling agents.


CHART 6.17

Advertisement’s Friends & Relatives Awareness Direct Selling Agents0

10

20

30

40

50

60

70

20%

61%

18%

1%

HOW YOU KNOW MAHINDRA FINANCE

HOW YOU KNOW IOB

TABLE 6.18


MOSTLY PREFFERED LOAN OFFERED BY MAHINDRA FINANCE

SL. NO MOSTLY

PREFERRED

LOAN

NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1 Personnel Loan 10 10%

2 Commercial Loan 8 8%

3 Housing Loan 72 72%

4 Educational Loan 5 5%

Total 100 100%

Analysis: From the above table it could be inferred that 72% of the consumers are choosing

housing loan

Interpretation: Most of the respondents prefer housing loan from Mahindra Finance. Only few of the customers prefer education loan and other loans in Mahindra Finance

CHART 6.18


Personnel Loan Commercial Loan

Housing Loan Educational Loan

0

10

20

30

40

50

60

70

80

10% 8%

72%

5%

MOSTLY PREFERRED LOAN

MOSTLY PREFERRED LOAN

TABLE 6.19


IS MANAGER AVAILABLE FOR ANY CLARIFICATION

SL. NO MANAGER

DISCUSSION

NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1 Yes 68 68%

2 No 32 32%

Total 100 100%

Analysis: From the above table it could be inferred that 68% of the customers are satisfied since

the manager is available for any clarification. Only 32% of the customers says it is not followed

in Mahindra Finance.

Interpretation: Most of the respondents are satisfied with the clarification facility with

manager. But some customers feel not so.


CHART 6.19

Yes No0

10

20

30

40

50

60

70

80

68%

32%

MANAGER DISCUSSION

MANAGER DISCUSSION


TABLE 6.20

OTHER SERVICE OUTLETS OF MAHINDRA FINANCE

SL. NO OTHER SERVICES NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1 Yes 95 95%

2 No 5 5%

Total 100 100%

Analysis: From the above table it could be inferred that 95% of the customers are aware that

Mahindra Finance has other service outlet . Only 5% of the customers do not know there are

any branches.

Interpretation: Most of the respondents are aware that there are branches throughout the india.

Where we can see that many people are aware in the branch regarding other outlets.

CHART 6.20


Yes No0

10

20

30

40

50

60

70

80

90

100

95%

5

OTHER SERVICES

ABROAD SERVICES

TABLE 6.21


DRAWBACKS/ PROBLEM WITHIN MAHINDRA FINANCE

SL. NO CUSTOMER

SUGGESTION

NUMBER OF

RESPONDENTS

PERCENTAGE OF

RESPONDENTS

1 Yes 86 86%

2 No 12 12%

3 Not Sure 2 2%

Total 100 100%

Analysis: From the above table it could be inferred that 86% of the consumers are suggesting

that there are drawbacks within ION. Only 12% of consumers are sure that there are no internal

problems in MAHINDRA FINANCE.

Interpretation: Most of the respondents tell that there are some internal problems and

drawbacks in Mahindra Finance. Where few people saythat no problem in Mahindra Finance.


CHART 6.21

Yes No Not Sure0

10

20

30

40

50

60

70

80

90

100

86%

12

2

DRAWBACKS/ PROBLEM WITHIN MAHINDRA FINANCE

Customer Satisfaction


FINDINGS OF THE SYUDY

FINDINGS OF THE STUDY

58% of the respondents are opinion that the customers are choosing saving account in

Mahindra Finance.


43% of the respondents are opinion that the customers are satisfied with the service and the

quality of products in Mahindra Finance.

57% of the respondents are opinion that the customers are using senior citizen services in

Mahindra Finance.

62% of the respondents rated that Mahindra Finance products is good.

76% of the respondents are ready to refer Mahindra Finance to others.

55% of the respondents have relationship with the Mahindra Finance for about 1-5 years.

60% of the respondents are opinion that all the insurance products of Mahindra Finance are

beneficial.

72 of the respondents are opinion that they are aware of home loan product of Mahindra

Finance.

50% of the respondents are utilizing the locker facility in Mahindra Finance by business

class people.

72% of the respondents are opinion that the publicity of Mahindra Finance to the people is

done through friends & Relatives.

64% of the respondents are sure that the levied charges by Mahindra Finance are low.

72% of the respondents are opinion that the customers prefer Housing Loan from Mahindra

Finance.

68% of the respondents are satisfied with the manager availability for any clarification.

58% of the respondents are opinion that the customers have moderate relationship with

Mahindra Finance.

95% of the respondents are aware of the Mahindra Finance service outlets in other areas

50% of the respondents agree that customers have some drawbacks and problems in

Mahindra Finance.

40% of the respondents are satisfied with the interest rate slabs.

36% of the respondents are opinion that the immediate attention on any complaints.

71% of the respondents are opinion that they do not expect any more service from Mahindra

Finance.


SUGGESTIONS &

RECOMMENDATIONS

SUGGESTIONS & RECOMMENDATIONS

With regard to banking products and services, customers respond at different rates, depending

on the consumer’s characteristics. Hence Mahindra Finance should try to bring their new

product and services to the attention of potential early adopters.

Due to the intense competition in the financial market, MAHINDRA FINANCE should

adopt better strategies to attract more customers.

Return on investment company reputation and premium outflow are most preferred attributes

that are expected by the respondents. Hence greater focus should be given to these attributes.

Mahindra Finance should adopt effective promotional strategies to increase the awareness

level among the customers.

Mahindra Finance should ask for their consumer feedback to know whether the customers

are really satisfied or dissatisfied with the service and product of the bank. If they are


dissatisfied, then the reasons for dissatisfaction should be found out and should be corrected

in future.

The Mahindra Finance brand name has earned a lot of goodwill and enjoys high brand

equity. As there is intense competition, Mahindra Finance should work hard to maintain its

position and offer better service and products to customers.

The bank should try to increase the Brand image through performance and service then, only

the customers will be satisfied.

Majority of the people find banking important in their life, so Mahindra Finance should

employ the strategies to convert the want in to need which will enrich their business.

The bank may conduct events/ schemes week or months for promoting products.

A separate information desk marked as an investment consultancy provider may be

established for catering to the needs of the customers.

A refined data base may be used for sending personal reminders to the customers.

Strategic points may be identified for the displaying the potters. All the communications

may be bear the information/ logo of the different schemes.

Cost effective, visually appearing tools like bulletin board may be used for promotion.

Direct mailers may be sent to co-operate account holder.


CONCLUSION

CONCLUSION

The project entitled “THE STUDY ON CUSTOMER PERCEPTION TOWARDS

MAHINDRA FINANCE ”has helped me in studying satisfaction about services and products

offered to customers. Since the opening up of the banking sector, private banks are in the fray

each one trying to cover more market share than the other. Mahindra finance must also be alert

what with Private Banks (ICICI, HDFC) breathing down its neck.

I am sure the bank will find my findings relevant and I sincerely hope it uses my suggestions

enlisted, which I hope will take them miles ahead of competition.


In short, I would like to say that the very act of the concerned management at Mahindra Finance

in giving me the job of critically examining consumer satisfaction towards financial products

and services of the company is a step in their continual mission of making all round

improvements as a means of progress.

I am sure the bank has a very bright future to look forward to

And will be a trailblazer in its own right.


BIBLOGRAPHY

BIBLOGRAPHY

Websites

www.wikipedia.com

www.thehindu.com

www.newyorktimes.com

www.economictimes.com


http://www.economictimes.com/

http://www.newyorktimes.com/

http://www.thehindu.com/

http://www.wikipedia.com/

www.mahindrafinance.com

Books Referred

“SERVICE MAKETING”,

Zeithaml.A

Tata Mc Graw-Hills, Publications

New Delhi

“BUSINESS STATISTICS”

G.P.Gupta

Sultanchand Publication

Mumbai

“Research Methodology”

Kothari.C.R

New Age International Publication

New Delhi


Documents

A Study on Customer Perception Towards Mahindra Finance (2)