Consumer Behavior On Public Private Bank 1
Consumer Behavior On Public Private Bank 1
Consumer Behavior On Public Private Bank 1
S.NO
CONTENTS
PAGE NO.
01
INTRODUCTION
03
02
COMPANY PROFILE
07-19
03
20-45
04
46
05
RESEARCH METHODOLOGY
49-54
06
54-67
07
FINDINGS
68
08
SUGGESTION
71
09
CONCLUSION
72
10
BIBLIOGRAPHY
74
11
ANNEXURE
76
CHAPTER NO-01
INTRODUCTION
CONSUMER BEHAVIOUR
Consumer behaviour is the study of when, why, how, and where people do or
do not buy product. It blends elements from psychology, sociology, social
anthropology and economics. It attempts to understand the buyer decision
making process, both individually and in groups. It studies characteristics of
individual consumers such as demographics and behavioural variables in an
attempt to understand people's wants. It also tries to assess influences on the
consumer from groups such as family, friends, reference groups, and society in
general. Customer behaviour study is based on consumer buying behaviour,
with the customer playing the three distinct roles of user, payer and buyer.
Relationship marketing is an influential asset for customer behaviour analysis as
it has a keen interest in the re-discovery of the true meaning of marketing
through the re-affirmation of the importance of the customer or buyer. A greater
importance is also placed on consumer retention, customer relationship
management, personalisation, customisation and one-to-one marketing. Social
functions can be categorized into social choice and welfare functions. Each
method for vote counting is assumed as a social function but if Arrows
possibility theorem is used for a social function, social welfare function is
achieved. Some specifications of the social functions are decisiveness,
neutrality, anonymity, monotonicity, unanimity, homogeneity and weak and
strong Pareto optimality. No social choice function meets these requirements in
an ordinal scale simultaneously. The most important characteristic of a social
function is identification of the interactive effect of alternatives and creating a
logical relation with the ranks. Marketing provides services in order to satisfy
customers. With that in mind, the productive system is considered from its
beginning at the production level, to the end of the cycle, the consumer
(Kioumarsi et al., 2009).
Belch and Belch define consumer behaviour as 'the process and activities people
engage in when searching for, selecting, purchasing, using, evaluating, and
disposing of products and services so as to satisfy their needs and desires'.'
Stimuli
BUYER'S
RESPONSE
Characteristics Process
Problem
recognition
Economic
Attitudes
Information
Product
Technological
Motivation
search
Price
Political
Perceptions
Alternative
Place
Cultural
Personality
evaluation
Promotion
Demographic
Lifestyle
Purchase
Natural
Knowledge
decision
Post-purchase
Product choice
Brand
choice
Dealer
choice
Purchase
timing
Purchase
amount
behaviour
The black box model shows the interaction of stimuli, consumer characteristics,
decision process and consumer responses. It can be distinguished between
interpersonal stimuli (between people) or intrapersonal stimuli (within people).
The black box model is related to the black box theory of behaviourism, where
the focus is not set on the processes inside a consumer, but the relation between
the stimuli and the response of the consumer. The marketing stimuli are planned
and processed by the companies, whereas the environmental stimulus are given
by social factors, based on the economical, political and cultural circumstances
of a society. The buyers black box contains the buyer characteristics and the
decision process, which determines the buyers response.
4
The black box model considers the buyers response as a result of a conscious,
rational decision process, in which it is assumed that the buyer has recognized
the problem. However, in reality many decisions are not made in awareness of a
determined problem by the consumer.
Information search
Once the consumer has recognised a problem, they search for information on
products and services that can solve that problem. Belch and Belch (2007)
explain that consumers undertake both an internal (memory) and an external
search.
Sources of information include:
Personal sources
Commercial sources
Public sources
Personal experience
process
that
is
associated
with
purchase
decision
is
Postpurchase evaluation
It is common for customers to experience concerns after making a purchase
decision. This arises from a concept that is known as cognitive dissonance.
The customer, having bought a product, may feel that an alternative would have
been preferable. In these circumstances that customer will not repurchase
immediately, but is likely to switch brands next time.
To manage the post-purchase stage, it is the job of the marketing team to
persuade the potential customer that the product will satisfy his or her needs.
Then after having made a purchase, the customer should be encouraged that he
or she has made the right decision.it is not effected by advertisement.
Internal influences
Consumer behaviour is influenced by: demographics, psychographics
(lifestyle), personality, motivation, knowledge, attitudes, beliefs, and feelings.
consumer behaviour concern with consumer need consumer actions in the
direction of satisfying needs leads to his behaviour of every individuals depend
on thinking
External influences
Consumer behaviour is influenced by: culture,sub-culture, locality, royalty,
ethnicity, family, social class, reference groups, lifestyle, and market mix
factors.
Consumer behavior involves the psychological processes that consumers go
through in recognizing needs, finding ways to solve these needs, making
purchase decisions (e.g., whether or not to purchase a product and, if so, which
brand and where), interpret information, make plans, and implement these plans
(e.g., by engaging in comparison shopping or actually purchasing a product).
Often, we take cultural influences for granted, but they are significant. An
American will usually not bargain with a store owner. This, however, is a
common practice in much of the World. Physical factors also influence our
behavior. We are more likely to buy a soft drink when we are thirsty, for
example, and food manufacturers have found that it is more effective to
advertise their products on the radio in the late afternoon when people are
getting hungry. A persons self-image will also tend to influence what he or she
will buyan upwardly mobile manager may buy a flashy car to project an
image of success. Social factors also influence what the consumers buyoften,
consumers seek to imitate others whom they admire, and may buy the same
8
brands. The social environment can include both the mainstream culture (e.g.,
Americans are more likely to have corn flakes or ham and eggs for breakfast
than to have rice, which is preferred in many Asian countries) and a subculture
(e.g., rap music often appeals to a segment within the population that seeks to
distinguish
itself
from
the
mainstream
population).
Thus,
sneaker
consumers are more likely to use an external search. Before buying a car, for
example, the consumer may ask friends opinions, read reviews in Consumer
Reports, consult several web sites, and visit several dealerships. Thus, firms
10
that make products that are selected predominantly through external search must
invest in having information available to the consumer in neede.g., through
brochures, web sites, or news coverage.
A compensatory decision involves the consumer trading off good and bad
attributes of a product. For example, a car may have a low price and good gas
mileage but slow acceleration. If the price is sufficiently inexpensive and gas
efficient, the consumer may then select it over a car with better acceleration that
costs more and uses more gas. Occasionally, a decision will involve a noncompensatory strategy. For example, a parent may reject all soft drinks that
contain artificial sweeteners. Here, other good features such as taste and low
calories cannot overcome this one non-negotiable attribute.
11
CHAPTER NO-02
COMPANY
12
ABOUT US
State Bank of India welcomes you to explore the world of premier bank in
India.
In this section, you can access detailed information on Overview of the Bank,
Technology Upgradation in the Bank, Board of Directors, Financial Results and
Shareholder Info.
The Bank is actively involved since 1973 in non-profit activity called
Community Services Banking. All our branches and administrative offices
throughout the country sponsor and participate in large number of welfare
activities and social causes. Our business is more than banking because we
touch the lives of people anywhere in many ways.
Our commitment to nation-building is complete & comprehensive.
TRANSFORMATION JOURNEY IN STATE BANK OF INDIA
The State Bank of India, the countrys oldest Bank and a premier in terms of
balance sheet size, number of branches, market capitalization and profits is
today going through a momentous phase of Change and Transformation the
two hundred year old Public sector behemoth is today stirring out of its Public
Sector legacy and moving with an agility to give the Private and Foreign Banks
a run for their money.
The bank is entering into many new businesses with strategic tie ups Pension
Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking,
Point of Sale Merchant Acquisition, Advisory Services, structured products etc
each one of these initiatives having a huge potential for growth.
The Bank is forging ahead with cutting edge technology and innovative new
banking models, to expand its Rural Banking base, looking at the vast untapped
13
potential in the hinterland and proposes to cover 100,000 villages in the next
two years.
It is also focusing at the top end of the market, on whole sale banking
capabilities to provide Indias growing mid / large Corporate with a complete
array of products and services. It is consolidating its global treasury operations
and entering into structured products and derivative instruments. Today, the
Bank is the largest provider of infrastructure debt and the largest arranger of
external commercial borrowings in the country. It is the only Indian bank to
feature in the Fortune 500 list.
The Bank is changing outdated front and back end processes to modern
customer friendly processes to help improve the total customer experience.
With about 8500 of its own 10000 branches and another 5100 branches of its
Associate Banks already networked, today it offers the largest banking network
to the Indian customer. The Bank is also in the process of providing complete
payment solution to its clientele with its over 8500 ATMs, and other electronic
channels such as Internet banking, debit cards, mobile banking, etc.
With four national level Apex Training Colleges and 54 learning Centres spread
all over the country the Bank is continuously engaged in skill enhancement of
its employees. Some of the training programes are attended by bankers from
banks in other countries.
The bank is also looking at opportunities to grow in size in India as well as
Internationally. It presently has 82 foreign offices in 32 countries across the
globe. It has also 7 Subsidiaries in India SBI Capital Markets, SBICAP
Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards - forming a
formidable group in the Indian Banking scenario. It is in the process of raising
capital for its growth and also consolidating its various holdings.
Throughout all this change, the Bank is also attempting to change old mindsets,
attitudes and take all employees together on this exciting road to
Transformation. In a recently concluded mass internal communication
programme termed Parivartan the Bank rolled out over 3300 two day
14
workshops across the country and covered over 130,000 employees in a period
of 100 days using about 400 Trainers, to drive home the message of Change and
inclusiveness. The workshops fired the imagination of the employees with some
other banks in India as well as other Public Sector Organizations seeking to
emulate the programme.
The CNN IBN, Network 18 recognized this momentous transformation
journey, the State Bank of India is undertaking, and has awarded the prestigious
Indian of the Year Business, to its Chairman, Mr. O. P. Bhatt in January 2008.
INVESTOR RELATIONS
State Bank of India, the countrys largest commercial Bank in terms of profits,
assets, deposits, branches and employees, welcomes you to its Investors
Relations Section. SBI, with its heritage dating back to the year 1806, strives to
continuously provide latest and upto date information on its financial
performance. It is our endeavor to walk on the path of transparency and allow
complete access to all the stakeholders enabling total awareness about the Bank.
The Bank communicates with the stakeholders through a variety of channels,
such as through e-mail, website, conference call, one-on-one meeting, analysts
meet and attendance at Investor Conference throughout the world.
Please find below Banks financial results, analysis of performance and other
highlights which will be of interest to Investors, Fund Managers and Analysts.
SBI has always been fundamentally strong in its core business which is
mirrored in its results year after year.
15
PERSONAL BANKING
Welcome to SBI's Retail Banking
State Bank of India offers a wide range of services in the Personal Banking
Segment which are indexed here.
16
Our products are designed with flexibility to suit your personal requirements.
Enjoy 24 hour facility through our ATMs - growing speedily it has crossed the
5000 mark Watch this space for more details.
SBI Term Deposits
Medi-Plus Scheme
Rates Of Interest
DEPOSIT SCHEMES
Whatever your needs - an investment of your surplus funds or to create a fund
for your childrens' education and marriage. You will find a product from SBI
that suits your requirement, delivered at a branch close to you.
Open an account with any of our branches, all of them are fully computerised,
and realise the advantage of our vast network. Place funds in Multi Option
Deposit Scheme, a term deposit which is not fixed at all and comes with a
17
unique break-up facility which provides you full liquidity as well as benefits of
higher rates of returns, through your savings bank account. Alternately, keep
that deposit intact by availing an overdraft facility, to meet your occasional
temporary funds requirements.
Want to build up savings slowly? Discover our Recurring Deposit Account.
You can save a little every month to build up the desired corpus to meet your
future requirement of funds.
Our products are designed with flexibility to suit your personal requirements.
Enjoy 24 hour banking facility through our Internet Banking/ widest network of
ATMs. Please watch this space for more details.
Current Account
Savings Bank Account
Term Deposits
Multi
Scheme
Scheme
Option
20
services for creating a deep and vibrant domestic capital market, including
development of apposite institutional framework.
Narasimam committee
addition, the new entity would also provide an array of wholesale and retail
banking products, designed to suit the specific needs cash flow requirements of
corporates and individuals. In particular, IDBI would leverage the strong
corporate relationships built up over the years to offer customised and total
financial solutions for all corporate business needs, single-window appraisal for
term loans and working capital finance, strategic advisory and hand-holding
support at the implementation phase of projects, among others.
IDBIs transformation into a commercial bank would provide a gateway to lowcost deposits like Current and Savings Bank Deposits. This would have a
positive impact on the Banks overall cost of funds and facilitate lending at
more competitive rates to its clients. The new entity would offer various retail
products, leveraging upon its existing relationship with retail investors under its
existing Suvidha Flexi-bond schemes. In the emerging scenario, the new IDBI
hopes to realize its mission of positioning itself as a one stop super-shop and
most preferred brand for providing total financial and banking solutions to
corporates and individuals, capitalising on its intimate knowledge of the Indian
industry and client requirements and large retail base on the liability side.
IDBI upholds the highest standards of corporate governance in its operations.
The responsibility for maintaining these high standards of governance lies with
its Board of Directors. Two Committees of the Board viz. the Executive
Committee and the Audit Committee are adequately empowered to monitor
implementation of good corporate governance practices and making necessary
disclosures within the framework of legal provisions and banking conventions.
Industrial Investment Bank of India Ltd.
The industrial investment bank of India is one of oldest banks in India. The
Industrial Reconstruction Corporation of India Ltd., set up in 1971 for
rehabilitation of sick industrial companies, was reconstituted as Industrial
Reconstruction Bank of India in 1985 under the IRBI Act, 1984. With a view to
23
About company
ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00
billion (US$ 81 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion
(US$ 896 million) for the year ended March 31, 2010. The Bank has a network
of 2,009 branches and about 5,219 ATMs in India and presence in 18 countries.
ICICI Bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and
through its specialised subsidiaries in the areas of investment banking, life and
non-life insurance, venture capital and asset management. The Bank currently
has subsidiaries in the United Kingdom, Russia and Canada, branches in United
25
States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai
International Finance Centre and representative offices in United Arab
Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia.
Our UK subsidiary has established branches in Belgium and Germany.
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and
the National Stock Exchange of India Limited and its American Depositary
Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).
ICICI Group Companies
ICICI Group
ICICI Prudential Life Insurance Company
ICICI Securities
ICICI Lombard General Insurance Company
ICICI Prudential AMC & Trust
ICICI Venture
ICICI Direct
ICICI Foundation
Disha Financial Counselling
PRODUCTS PROVIDED BY ICICI BANK
Savings account :
o
Dial-a- draft/payorder
Fixed Deposits:
26
Credit Cards:
o
Dial a draft/payorder
Lost/Replacement card
Others:
o
Standing Instructions
Cards
Credit Cards
Add value to your shopping and shop smart.
Debit Cards
Access your bank account anywhere, anytime.
Benefits
27
other bills online with the added security of Internet Banking user ID and
password.
Prepaid Cards
Ensure safe and convenient payments.
Commercial Cards
ICICI Banks Commercial Cards offer simple and convenient solutions to meet
the payment requirements of your organisation.
ICICI Bank Commercial Cards have been designed as payment solutions for
large & mid-sized organizations. A widely accepted concept internationally,
Commercial Cards help to better streamline payment processes & thus increase
efficiencies.
Corporate
Platinum
Purchase Card
DriveTrack Card
Corporate Card
Purchasing Solution is
Programme delivers
greater control,
management
28
enhanced efficiencies
programme DriveTrack
programme combines
80% of a company's
the power of a
transaction volume.
Through a Purchase
line reporting
capabilities and
purchases can be
dedicated account
management.
SAVING ACCOUNT
These accounts are primarily meant to inculcate a sense of saving for the future,
accumulating funds over a period of time. Whatever your occupation, we are
confident that you will find the perfect banking solution. Open an account in
your name or register for one jointly with a family member today.
Regular Salary
Regular
Advantage
Savings Plus
Senior Citizens
Classic
Premium
Family Savings
SavingsMax
Payroll
Retail Trust
No Frills
Defence
Kids
31
Investments &
Insurance
Loans
Savings Accounts
Personal Loans
Wealth
Advisory
Services
SmartDraft
Home Loans
SavingsMax Account
No Frills Account
Institutional
Account
Gold Loan
Savings
Payroll
Classic
Regular
Premium
Defence
No
Frills
Salary
Account
Reimbursement
Current Account
Kid's Advantage Account
Pension Saving
Account
Bank
Insurance
General
&
Health
Insurance
Bonds
Loans Against
Receivables
Knowledge
Centre
Vehicle
Equities &
Derivatives
Mudra Gold
Bar
Mudra Silver
Bar
Receipt
Forex Services
Products
Services
Rental
Cards
&
Trade
Services
Forex
Services
Branch
Locator
Tax Planning
Educational Loan
Salary Accounts
Mutual
Funds
Current
RBI
Guidelines
Forex Limits
Credit Cards
Merchant
Advantage
Current Account
Merchant
Advantage
Plus Current Account
Payment
Services
NetSafe
Merchant
Services
Platinum
Card
Plus
Credit
Prepaid
Refill
Visa Signature
Card
Credit
ngpay
Fixed Deposits
Sweep-in Facility
Recurring Deposit
World
MasterCard
Credit Card
Demat Account
Corporate
Credit Card
Platinum
Premium
Preferred Banking
PayNow
Register
Pay
InstaPay
Business
Card
mChek
Gold
Credit
Distributor Card
Debit Cards
EasyShop International
Debit Card
EasyShop International
Business Debit Card
EasyShop
Woman's
Advantage Debit Card
EasyShop
Debit Card
Titanium
DirectPay
RTGS Funds
Transfer
e-Monies
Electronic
Funds
Transfer
Excise
&
Service Tax
Payment
Online
Payment of
Direct Tax
Online
payment
DVAT
of
Online
payment of
Gujarat VAT
FoodPlus Card
Religious
Offerings
MoneyPlus Card
Donate
33
&
Visa Money
Transfer
Classic Banking
Visa BillPay
Purchase Card
Imperia
Banking
BillPay
to
Charity
Access
Bank
Your
NetBanking
Credit
Online
Cards
OneView
InstaAlerts
MobileBanking
ATM
PhoneBanking
Email
34
CHAPTER NO-03
OBJECTIVE OF
THE STUDY
36
CHAPTER NO-05
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It
my be understood as a science of studying how research is done systematically
& scientifically. In it we study the various steps that are generally adopted by a
researcher in studying his research problem along with the logic behind them.
37
2.
3.
4.
5.
Random sampling
Sampling Design:
The sampling design mainly consists of the sample taken for the study
along with the sample size, sample frame and sampling method.
39
Sample Size:
From the universe, sample sizes of 50 customers were selected for
the purpose of the study.
Sample Frame:
The customers were selected on a random basis from which the
respondents were selected based on convenience.
Sampling Method:
Convenience sampling was used, based on the willingness and
availability of the respondents. The study was conducted on consumers with
different type of business.
40
In Indian Banking sector includes many players, but out of these players I
have selected only the Four Banks SBI , IDBI & ICICI, HDFC bank .The study
gave me a chance to carry Comparative analysis of consumer behavior along
with its various tools used in analysis which helps to understand the basics of
Consumer Behavior in Public & Private sector Bank and provides the tools that
help to decide which companies make worthwhile investments. This type of
analysis examines key products and policies of Banks. .The scope of project
extends to the study of 4 key players of Indian Banking sector . The study was
mainly based on the Consumer Behavior in Public & Private sector Bank.
LIMITATIONS
Despite the possible efforts in concluding the research, they were some
unavoidable situations, which limited the scope of the project.
1. The study was restricted to Bhopal.
2. Time was the biggest constraint as all questionnaires were to be filled in
person to actual views, but all efforts were made to get information
relevant to the research.
3. There may be some disepecies in views as some, people might give false
information in questionnaire, as they might not be in filling the form.
4. The sample size of 50 is small so there may be difference in the reality
and the findings.
42
CHAPTER NO-06
DATA ANALYSIS
&
INTERPRETATION
43
44
CHAPTER NO-07
FINDING
45
CHAPTER NO-08
SUGGESTION
SUGGESTION
46
that company could know the satisfaction level of the consumer. It will be
more beneficial to company in making new strategies & policies.
4. Most of the person, which participated in the survey have said that the
program should be divided in to small packages. So that any one could
buy it easily.
5. The company price should be kept low in comparison to competitors
product price so that company can earn more profit by selling large
volume.
6. The companys awareness
47
CHAPTER NO-09
CONCLUSION
CONCLUSION
48
The bank needs to make people aware about there products and the basic
benefits they can derive out of it.
Aggressive Marketing is the key to increasing the market share in this area,
since the market has a lot of potential both in terms of untapped market
Almost Both the Banks offer similar features and facilities with their Products.
There are certain reasons for existing customers of credit card of any Bank to
shift to another Bank.
49
CHAPTER NO-10
BIBLIOGRAPHY
BIBLIOGRAPHY
50
BOOKS
Marketing Management Philip Kotler, The Millennium Edition,
Prentice Hall Of India Private Limited, New Delhi.
A. Aaker, David. Strategic Market management. New York: John
Wiley & Sons,2001, pp.154-162.
Levy, Michael. A. Weitz .Barton. Retailing Management. New York:
McGrew-Hill,2004,pp.6-8, 627
Palmer, Adrian. Introduction to Marketing. India: Oxford University
Press,2004, pp.350-351,363.
1.
MAGAZINES REFFERED:
INDIA TODAY
BUSINESS TIMES
2.
WEBSITES REFFERED:
www.icicibank.com
www.sbi.com
www.indianinfoline.com
www.creditcardsbasic.com
3.
SEARCH ENGINES:
www.google.co.in
www.wikipedia.org.in
51
CHAPTER NO-11
ANNEXURE
52
QUESTIONNAIRE
53