1

LOVELY
PROFESSIONAL
UNIVERSITY

ASSIGNMENT
NO-2 MGT-631

TOPIC- To find out the HDFC customers expectations.

Submitted by Guided by
CHANDAN KUMAR SINGH Miss Jaspreet Kaur

Section-B

Roll number –RT1902-A-27

Reg No:- 10903162

Table of Content
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S. No. Topic Page

No.
1 Acknowledgement 03
2 Objective of the study 03
3 Scope of the study 03
4 Need of the study 04
5 Introduction of the HDFC Bank. 04
What are customer expectation 05
6 Review of Literature 06
7 Research Methodology 08
8 Data Analysis 09
09 Finding of the Study 23
10 Suggestion 24
11 Conclusion 24
12 Bibliography 25
12 Questionnaire for Customer 26

ACKNOWLEDGEMENT
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I provide full justice to this term paper which is prepared by visiting various web-
sites, magazines, articles etc.

I would like to take an opportunity to thank all the people in collecting the
necessary information and making of the report. I am grateful to all of them for
their time and wisdom.

My project becomes a reality only due to cooperation of many people who had
helped me in completing this project. I sincerely extend my gratitude to Miss
Jaspreet Kaur who has given me this precious opportunity to have known about
the Customer Expectation.

Objective of the study.

 To find out the Customer Expectation of HDFC Bank.
 To know how the characteristics of Service provider influence the
Customer.

 Study the Service process with respect to HDFC Bank.

 SCOPE OF THE STUDY

This project helps in projecting the customer expectation. When the customer’s while
selecting a service what is the role play by the service provider. The scope of study for
management student gets to apply all their theoretical knowledge in the market.

 NEED OF THE STUDY

As we know that every company spend a lot of money to provide the better service to
his customer. Therefore customer relationship is an important aspect of the companies
to generate sales. It is also important for the companies to know whether their
customer expect to him. Thereby we have taken this as our research problem.
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 Introduction of HDFC Bank

HDFC Bank Ltd. is a major Indian financial services company based in India,
incorporated in August 1994, after the Reserve Bank of India allowed establishing
private sector banks. The Bank was promoted by the Housing Development
Finance Corporation, a premier housing finance company (set up in 1977) of India.
HDFC Bank has 1,725 branches and over 4,232 ATMs, in 779 cities in India, and
all branches of the bank are linked on an online real-time basis. As of 30 September
2008 the bank had total assets of Rs.1006.82 billion. For the fiscal year 2008-09,
the bank has reported net profit of 2,244.9 crore (US$487.14 million), up 41%
from the previous fiscal. Total annual earnings of the bank increased by 58%
reaching at 19,622.8 crore (US$4.26 billion) in 2008-09.

Type Public
(BSE: 500180, NYSE: HDB)

Industry Banking
Financial services

Founded August 1994

Founder(s) Bibu Verghese

Headquarters Mumbai, India

Key people C.M. Vasudev

(Chairman)
Aditya Puri
(MD)

Revenue 20,266.99 crore (US$4.4 billion)(2010)[2]

 WHAT ARE CUSTOMERS EXPECTATIONS?

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Understanding customer needs and expectations is very important to a service-
oriented organization as it protects against dissatisfied customers or, even worse,
those who take their business elsewhere without voicing their complaint.

After customer needs and expectations are identified, customer satisfaction must be
monitored and the findings used to generate improvements. Proactively conducting
customer satisfaction surveys also generates a positive impression on customers
about the organization’s interest in them.

As your customer base grows it's imperative that you maintain the same level of
service that you provided when you first earned your customer's business. You
have to anticipate their needs before they announce them, and put those actions in
place. Meeting these expectations will cement your relationships, increase their
satisfaction, and retain their business. Here are six customer expectations that are
the cornerstone of outstanding service and increased sales:
1. Customers Expect Solid Information.
Providing your customers with tangible information lets them know that you value
them and respect their ability to make sound decisions. When they feel that they're
respected, they're more open and willing to do more business with your company.

2. Customers Expect Options.

Customers don't want to be told that there's only one way or one solution. They'll
respond positively when they're given options. Options are essential because they
create dialogue and discussion. Open dialogue can lead to more sales.
3. Customers Expect Single Source Service.
Customers don't want to be transferred to every unit of your business to have their
problems solved. They want to be able to do business with you with the slightest
amount of discomfort.

4. Customers Expect Superior Communication.

They may not be the best communicators, but they expect communication
excellence from you. So, if you tell them that you will call them back at a certain
time, make sure that you do. Your responsiveness will create a bond of trust, and a
communication comfort level.
5. Customers Expect Consulting.
As the expert on your business' products and services, you are your customer only
contact to determining how to use your product and/or service to get the best
RETURN ON INVESTMENT (ROI).
6. Customers Expect A Seamless Relationship.
The best businesses are those that believe in going the extra mile for their
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customers. They know that they have to reinforce why it's in the customers best
interest to continue doing business with them.

 Review of Literature
Cynthia Webster, (1991) Provides insight into the concept of quality in the service
market by investigating possible influences on consumer expectations of quality
and how these expectations may be better met. Reports on a study examining the
effects of certain stimuli on expectations regarding different types of service.
Discovers that significant differences were found regarding the nature of the
expectations as the stimuli werevaried, differences which remained after
involvement and the removal of personal need effects. Offers recommendations to
service providers and includes an explanation of the methodology used in the study.
Alison M. Dean, (2004) Reported studies on call centers emphasize efficiency and
control, with possible implications for service priorities, customer orientation and
service quality. However, there is little empirical research to test assumptions from
the customer’s perspective. This study aimed to establish whether customers
expected (predicted) low levels of service from a call center, how this level
compared to the minimum level they considered adequate, and whether the
perceived customer orientation of the call center was related to service quality
expectations. Data were collected in Australia from two sources: end consumers (n
= 289) of an insurance provider, and business customers (n = 325) of a bank. Key
findings were similar for both samples. First, customers had very high levels of
adequate (minimum) expectations, and adequate expectations behaved
independently from predicted (forecast) expectations. Second, customer orientation
was associated with predicted expectations but not adequate expectations. Peter
Kangis, Vassiliki Passa, (1997) Reports the findings of a small-scale survey
undertaken with a view to establishing the extent to which customers of retail banks
are influenced in their expectations of quality and in their perceptions of service
received according to their awareness of service charges imposed by banks. Finds
that customers who were aware of banking charges had higher expectations of
quality than those who were not. Further, customers who were aware of banking
charges perceived receiving a higher quality service than those who were not
aware. Although the findings were not statistically significant, the general direction
of the relationship was maintained across all the variables measured. Kathryn
Bishop et al, (1994) examines the differences between consumers' expectations and
perceptions of service quality they received when shopping apparel specialty stores.
Also takes into account consumer demographic characteristics. Utilizes
SERVQUAL scale and methodology developed by Parasuraman et al., (1991).
Calculates gap scores by subtracting the expectation scores from the perception
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scores. Using a factor analysis procedure, four determinants of service quality
emerged: (1) Personal Attention; (2) Reliability; (3) Tangibles; and (4)
Convenience. Findings indicate greatest disparity between expectations and
perceptions for the Personal Attention factor. Consumer demographic
characteristics of race, marital status, and income provided significant differences
between expectations and perceptions for Reliability and Convenience. Also
considers the importance of service as a patronage criterion for apparel specialty
store consumers. Indicates that service ranked third in importance behind
merchandise assortment and price. Ugur Yavas, et al, (2010) This study aims to
develop and test a comprehensive model that begins with management
commitment/concern and progresses through intermediate links of service climate
and in-role frontline employee (FLE) performance to customer satisfaction and
eventually to sales performance. Results showed that management
commitment/concern was significantly related to service climate; service climate to
in-role FLE performance; in-role FLE performance to customer satisfaction; and
customer satisfaction to branch sales. Akiko Ueno, (2010) There are many features
that have been regarded as having a critical role in supporting service quality. The
purpose of this article is to identify those features that are fundamental in
supporting service quality. From a comparative study of these three areas of the
literature, it was found that there are seven common features: recruitment and
selection, training, teamwork, empowerment, performance appraisals and reward,
communication, and culture of the organisation. Each of them is argued to be
critical for the management of service quality. Vinh Sum Chau, Liqing W.L.C.
Ngai, (2010) This paper aims to investigate the perceptions, attitudes and behaviour
of the youth market for internet banking services (IBS). The authors find that young
people (age 16-29) have more positive attitudes and behavioural intentions towards
using IBS than other user-groups. It has also confirmed that there is a positive
impact of IBS quality on satisfaction and loyalty. Peter Kangis, Vassiliki Passa,
(1997) Reports the findings of a small-scale survey undertaken with a view to
establishing the extent to which customers of retail banks are influenced in their
expectations of quality and in their perceptions of service received according to
their awareness of service charges imposed by banks. Finds that customers who
were aware of banking charges had higher expectations of quality than those who
were not. Further, customers who were aware of banking charges perceived
receiving a higher quality service than those who were not aware. Although the
findings were not statistically significant, the general direction of the relationship
was maintained across all the variables measured.

 RESEARCH METHODOLOGY
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Before examining types of research designs it is important to be clear about the role
and purpose of research design. We need to understand what research design is and
what it is not. We need to know where design into the whole research process from
framing a question to finally analyzing and reporting data.

 Research design
The purpose of the study to “To find out the HDFC Customer expectation at
Jalandhar”. Hence descriptive research design used for this study. A survey was
conducted through which an analysis was drowned.

 Sample size
A sample of “50” sample was taken for the purpose of study and analysis.

 Sampling unit:
Sampling unit consists of all customers of HDFC Bank in Jalandhar city.

 Sampling technique
Convenience sampling technique (non probability sampling) was used for the
survey. Questionnaire filled by the selected customers.

 Data collection: data was collected through primary and secondary

sources.

(1) Primary data: primary data was collected with the help of structured
questionnaire and personal interview.
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(2) Secondary data: Source of secondary data was collected with help
of published reports, magazines, newspapers and the websites.

 Data Analysis:
sex

Cumulative
Frequency Percent Valid Percent Percent

Valid Male 44 88.0 88.0 88.0

Female 6 12.0 12.0 100.0

Total 50 100.0 100.0

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 ANALYSIS: In the above data show that the Gender of the respondent.
Here 88% of respondent are male and rest 12% are female.

Age

Cumulative
Frequency Percent Valid Percent Percent

Valid 20 to 30 23 46.0 46.0 46.0

30 to 40 11 22.0 22.0 68.0

40 to 50 8 16.0 16.0 84.0

Above 50 8 16.0 16.0 100.0

Total 50 100.0 100.0

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 ANALYSIS: The above data show that the age difference of the
respondent. 46% of the respondent belongs to 20 to 30 year. 22% people
belong to 30 to 40. 16% belong to 41 to 50 and rests of the respondent
belong to 50+age category.

Occupation

Cumulative
Frequency Percent Valid Percent Percent

Valid Business 12 24.0 24.0 24.0

Home Makers 7 14.0 14.0 38.0

Professional 13 26.0 26.0 64.0

Student 18 36.0 36.0 100.0

Total 50 100.0 100.0

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 ANALYSIS: Most of the respondents are the student and around 20% of
respondent are business man and the Professional.

Education

Cumulative
Frequency Percent Valid Percent Percent

Valid Graduation 2 4.0 4.0 4.0

Professional 28 56.0 56.0 60.0

Others 20 40.0 40.0 100.0

Total 50 100.0 100.0

 ANALYSIS: when we talk about the educatuon qualification of the

respondent. Most of the respondent are professional and rest atleast passed
Up to Hs.
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Incom

Cumulative
Frequency Percent Valid Percent Percent

Valid RS 10,000 to 20,000 24 48.0 48.0 48.0

RS 20,000 to 50,000 20 40.0 40.0 88.0

Above 50,000 6 12.0 12.0 100.0

Total 50 100.0 100.0

 ANALYSIS: 48% people income is between 10,000 to 20,000. 40%

people income is 20,000 to 50,000.
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How long have you been using HDFC Banking Service?

Cumulative
Frequency Percent Valid Percent Percent

Valid 0 to 6 Month 6 12.0 12.0 12.0

6 month to 1 year 8 16.0 16.0 28.0

1 to 2 year 14 28.0 28.0 56.0

More than 2 year 22 44.0 44.0 100.0

Total 50 100.0 100.0

 ANALYSIS: The above question is about the period of the time using the
services. The 16 % people is using the service is more then 6 to 1 year. 44%
people are using the service is more then 2 years . it is show that the
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customer is satisfied with the service. So we say that the customer is satisfied
with the service provider.

Which service are you using now?

Cumulative
Frequency Percent Valid Percent Percent

Valid Saving A/C 17 34.0 34.0 34.0

Current A/C 6 12.0 12.0 46.0

Credit Cards 4 8.0 8.0 54.0

Insurance Service 11 22.0 22.0 76.0

Loan Service 11 22.0 22.0 98.0

Others 1 2.0 2.0 100.0

Total 50 100.0 100.0

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 ANALYSIS: This question is show the types of services which is used by
the respondents. Here the above data show that 34% of the people using
Saving A/C services. 22% people using both services insurance and loan
service.

How many time you are visit in HDFC Bank in Month?

Cumulative
Frequency Percent Valid Percent Percent

Valid 0 to 2 times 12 24.0 24.0 24.0

2 to 5 times 23 46.0 46.0 70.0

More than 5 times 15 30.0 30.0 100.0

Total 50 100.0 100.0

 ANALYSIS: This question is show the visited time of the customer. 46%
people said that they visit the 2 to 5 times. 30% people said that the visit
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more than 5 times. And 24% people said that they visit 0 to 2 times in a
month.

Who influenced you to take HDFC Banking Service?

Cumulative
Frequency Percent Valid Percent Percent

Valid FAmily Member 16 32.0 32.0 32.0

Friends 13 26.0 26.0 58.0

Advertisement 15 30.0 30.0 88.0

Others 6 12.0 12.0 100.0

Total 50 100.0 100.0

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 ANALYSIS: This question is the most important because the customer tell
about who influenced while selcection of a service provider. When we
analysis the data we found that 32% people said that Family influnce more
than others. 30% people said that advertisement influenced. And 26% people
said that friends influenced which selection a particular services.

Why do you prefer HDFC Banking service?

Cumulative
Frequency Percent Valid Percent Percent

Valid For investment 12 24.0 24.0 24.0

For Business 17 34.0 34.0 58.0

For safety 14 28.0 28.0 86.0

Others 7 14.0 14.0 100.0

Total 50 100.0 100.0

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 ANALYSIS: It is only to know the customer prefrence towards the service

provider. We know that customer only prefer something when they required
such type of services and it is very important for the customer satisfaction.
Many of the respondents are business and student so they only prefer
banking service for business and investment. Professionals prefer for Safety.
 Factor analysis
 Following factors influenced while selecting Banking Services? Rank the following
factors according to your preference. (Strong Agree-1, Agree-2, Somewhat Agree-3,
and Disagree-4)
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Total Variance Explained

Initial Eigenvalues Extraction Sums of Squared Loadings

Compo
nent Total % of Variance Cumulative % Total % of Variance Cumulative %

1 1.587 19.840 19.840 1.587 19.840 19.840

2 1.405 17.566 37.407 1.405 17.566 37.407

3 1.255 15.683 53.090 1.255 18.683 55.090

4 1.178 14.726 67.815 1.178 16.726 71.815

5 .931 11.638 79.453

6 .697 8.715 88.169

7 .579 7.242 95.411

8 .367 4.589 100.000

Component Matrixa

Component

1 2 3 4

Good Service -.142 .696 -.189 -.347

Satety .002 -.165 .759 -.502

Growth .734 -.098 -.363 -.005

Availability .706 .178 .188 -.382

Convenience .686 .281 .170 .464

Flexibility -.060 .495 .623 .385

Service Charge -.209 .690 -.197 .044

Customer Care -.111 -.230 .138 .542

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 ANALYSIS: The first step in interpreting the output is to look at the factor
extracted The last column of table of total variance shows that the four factor
extracted together account for 72% of total variance this is good deal because
with only four factor we have lost only about28% of the information content
while 72% is retain by the two factors extracted out of the ten original
variable our null hypothesis is rejected because all factor have different
importance on the consumer expectation to his service provider.

Every consumer want to the better service so here the most four factors which is
influence the consumer is follows:

• Growth

• Availability

• Good Service

• Safety

Most of the Consumer use service is more than 2 years. It shows that the
consumers are satisfied with the services. And the service provides the good
services.
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 Factor analysis
 Rank the following factors according to your expectation for the services provided
by your service provider. (1 Being lowest and 5 Being highest)
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Total Variance Explained

Compo Initial Eigenvalues Extraction Sums of Squared Loadings

nent Total % of Variance Cumulative % Total % of Variance Cumulative %

1 1.950 19.502 19.502 1.950 19.502 19.502

2 1.635 16.355 35.856 1.635 16.355 35.856

3 1.302 13.022 48.878 1.302 13.022 48.878

4 1.109 11.094 59.972 1.109 11.094 59.972

5 1.014 10.136 70.108 1.014 10.136 70.108

6 .825 8.248 78.356

7 .689 6.887 85.243

8 .625 6.246 91.489

9 .506 5.065 96.554

10 .345 3.446 100.000

Component Matrixa

Component

1 2 3 4 5

Explains all terms clearly .306 -.681 .258 .009 -.094

High-speed access .197 .537 .403 .174 .033

Staff are considerate .596 -.012 -.083 .286 -.438

Choice of payment methods .415 -.501 .540 -.270 .155

Convenient location .171 .278 .677 .394 .152

Protects personal information .340 -.216 -.294 .719 -.117

Provides most up-to-date

.760 .046 -.100 -.274 .249
and accurate information

Easy to find the correct

.305 .153 -.331 .182 .764
information

Nice and clean environment .659 .191 -.301 -.330 -.212

Good queuing system .203 .668 .134 -.187 -.246

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 ANALYSIS: The first step in interpreting the output is to look

at the factor extracted The last column of table of total
variance shows that the five factor extracted together
account for 71.108% of total variance this is good deal
because with only five factor we have lost only about28% of
the information content while 71.108% is retain by the four
factors extracted out of the ten original variable. Our null
hypothesis is rejected because all factors have different
impact of the consumer expectation. And our alternative
hypothesis is selected and we conclude that:-

After applying the f test we find that four factors out of ten
variables which are most important. Because they contribute
about 71.108%. We named the component as follow:-

• Provide most up to date and correct information.

• Good queuing system.
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• Convenient location
• Protect personal information
• Easy to find the correct information

Findings of the study

When we study the consumer expectations toward the HDFC banking service in
Jalandhar. We know that it is very important for the industry to know the
consumer expectations. Because if the industry not know the expectations than
they not provide the better services. In this study I find the various things which
are important for the consumer in related to internet service. Findings of the
study are following.

 The most of the respondent are male.

 The most of the respondent are belong to the age group 20 to 30.

 Most of the respondents are the student.

 Most of the respondent are professional.

 46% people income is between 10,000 to 20,000.

 Most of the consumer prefer the Saving A/C.

 The higest percentage of customer is Airtel 36%.

 The most of the people is using the service is more then 2 years. It show that
the consumer are satisfied with the services.

 When we analysis the data we found that 42% people said that Friends
influnce more than others. 24% people said that advertisement influenced.

 In the above we see that the consumer chose the mainly three factors which
are business, safety, and investment which are the main factors of consumer
preference while selecting banking services.

 Every consumer want to the better service so here the most four factors
which is influence the consumer is follows:
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• Growth

• Availability

• Good Service

• Safety

When we talk about the customer expectation we know that in banking sector
customer expected high service form his service provider. So we say that HDFC
able to provide the better service to his customer.

Conclusion & Suggestions.

Recommendations:-

As mentioned in the future of Indian Internet and on the basis of the primary
research and secondary research, the following recommendations can be
concluded:

 Providing the better service will increase more competition.

 In order to allow technological up gradation, segment policies should be
technology-neutral, and not specifically prescriptive.
 Bringing more up gradation for the betterment of the users.
 Improvement of network infrastructure in both the urban and the rural Areas.

 Conclusion

When we talk about the customer expectation we know that in banking sector
customer expected high service form his service provider. So we say that HDFC
able to provide the better service to his customer.
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We say that today market is very competitive so the every bank tries to grape more
to more customers. And they try to provide the better service.

 BIBLIOGRAPHY & REFERENCE

BOOKS REFERED

 Kotler Philip (2008), Marketing Management 12th Ed, New Delhi, Pearson
Education.
 Lovelock Cristopher (2005), Service Marketing 5th Ed, New Delhi, Pearson
Education.
Journal:-
 Peter Kangis, Vassiliki Passa, (1997) "Awareness of service charges and its
influence on customer expectations and perceptions of quality in banking",
Journal of Services Marketing, Vol. 11 Iss: 2, pp.105 – 117
 Vinh Sum Chau, Liqing W.L.C. Ngai, (2010) "The youth market for
internet banking services: perceptions, attitude and behaviour", Journal of
Services Marketing, Vol. 24 Iss: 1, pp.42 – 60
 Akiko Ueno, (2010) "What are the fundamental features supporting service
quality?", Journal of Services Marketing, Vol. 24 Iss: 1, pp.74 – 86
 Ugur Yavas, Emin Babakus, Nicholas J. Ashill, (2010) "Testing a branch
performance model in a New Zealand bank", Journal of Services Marketing,
Vol. 24 Iss: 5, pp.369 – 377
 28
 Kathryn Bishop Gagliano, Jan Hathcote, (1994) "Customer Expectations
and Perceptions of Service Quality in Retail Apparel Specialty Stores",
Journal of Services Marketing, Vol. 8 Iss: 1, pp.60 – 69
 Peter Kangis, Vassiliki Passa, (1997) "Awareness of service charges and its
influence on customer expectations and perceptions of quality in banking",
Journal of Services Marketing, Vol. 11 Iss: 2, pp.105 – 117
 Alison M. Dean, (2004) "Rethinking customer expectations of service
quality: are call centers different?", Journal of Services Marketing, Vol. 18
Iss: 1, pp.60 – 78
 Cynthia Webster, (1991) "Influences Upon Consumer Expectations of
Services", Journal of Services Marketing, Vol. 5 Iss: 1, pp.5 - 17

Questionnaire for Customer

I am the student of L.P.U is conducting a study on the Customer expectation towards HDFC
banking Service in Jalandhar. Please fill in the following questionnaire to help us in our Survey.
Name: -………………………………………………………………………………
Sex:- (a) Male (b) Female
Age:- (a) 20 to 30 (b) 30 to 40 (c) 40 to 50 (d) Above 50
Occupation
(a) Business (b) Home maker (c) Professional

(d) Student (d) Employee (e) Others……………….

Educational Qualification
(a)Up to Hs (b) Graduation
(c) Professional (d) Others………………………

Income (P/m)
(a) Less than Rs.10, 000/- (b) Rs. 10,000/- to 20,000/

(c) Rs. 20,000/- to 50,000/ (d) Above Rs. 50, 000/

Q1 How long have you been using HDFC Banking Service?

(a) 0 to 6 month (b) 6 month to 1 year
 29
(c) 1 to 2 year (d) More than 2 year
Q2 Which service are you using now?
(a) Saving A/C (b) Current A/C (c) Credit Cards
(d) Insurance (e) Lone Service (f) Others……………….
Q3 How many time you are visit in HDFC Bank in Month?
(a) 0 to 2 times (b) 3 to 5 times (c) More than 5 times
Q4 Who influenced you to take HDFC Banking Service?
(a) Family Member (b) Friends (c) Advertisement (d) Others……………….

(5)Why do you prefer HDFC Banking service?

(a) For Investment (b) For Business (c) For Safety (d) Others…………..

(6) Following factors influenced while selecting Banking Services? Rank the following
factors according to your preference. (Strong Agree-1, Agree-2, Somewhat Agree-3, and
Disagree-4)

S No. Factors Strongly Agree Somewhat Disagree

Agree Agree
1 Good Service
2 Safety
3 Growth
4 Availability
5 Convenience
6 Flexibility
7 Service Charge
8 Customer Care

Q 7 Rank the following factors according to your expectation for the services provided by
your service provider. (1 Being lowest and 5 Being highest).

S No. Factors 1 2 3 4 5
1 Explains all terms clearly
2 High-speed access
3 Staff are considerate
4 Choice of payment methods
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5 Convenient location
6 Protects personal information
7 Provides most up-to-date and accurate
information
8 Easy to find the correct information
9 Nice and clean environment
10 Good queuing system

(10)What is your valuable suggestion / opinion about your service

provider?............................................................................................................................................
...........................................................................................................................................................