bank_service_quality

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Customer Perception towards bank service quality in central bank of India.
Summer Project Report
Submitted
In the partial fulfillment of the Degree of
Masterof Business Administration
(Finance)
Semester-II
By
Karishma makarani (12)
Under the Guidance of:
(Prof. kedar bhatt)
Centre for Management Studies
(MBA-FINANCE)
Submitted To:
Centre for Management Studies
Ganpat University,

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CERTIFICATE BY THE GUIDE
This is to certify the Mr./Miss karishma makarani m. student of MBA (Specialization) has
satisfactorily completed the Summer Internship Project at central bank of India and submitted the
report titled Customer perception towards bank service quality in central bank of India under my
guidance.
(Prof. kedar bhatt)
Date: Centre for Management Studies
Place: Ganpat University.

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CANDIDATE’S STATEMENT
I hereby declare that the work incorporated in this report titled customer perception towards bank
service quality in central bank of India at completion of Summer Internship Project is the outcome of
my study undertaken by me at central bank of India and it has not been submitted earlier to any other
University or Institution.
Date: (karishma makrani)
Place:
PREFACE

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In the area of rapid industrialization and technological innovation which has made gujrat emerge as
industrial state with newer avenues and opportunities.
As per university norms, it is must for the students of M.B.A.F.S, to prepare a research report on choose
topic study by visiting a particular to a market to acquire practical as well as theoretical knowledge
pertaining to that insurance in different aspects about its internal and external environment.
Our main focus and study was on An in depth study on consumer perceptions towords service quality in
central bank of india which cover the analysis about different, research methodology , which type of
factors should be affect in the consumer perception of service quality research mentioned.
Lastly, we have tried our level best informative report.

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.
ACKNOWLEDGMENT
It is really a matter of pleasure for me to get an opportunity to thank all the persons who contributed
directly or indirectly for the successful completion of the project report, “CUSTOMER
PERCEPTION TOWARDS BANK SERVICE QUALITY IN CENTRAL BANK”.
I wish to express my gratitude to the branch manager Mr. MIRDOS MAKARANI of CENTRAL
BANK, ANAND for giving me an opportunity to be a part of their esteem organization and enhance my
knowledge by granting permission to do a summer training Project. They provided me with their
assistance and support whenever needed, which has been instrumental in completion of this project. I
am thankful to them, for their support and encouragement throughout the tenure of the project. Also I
am thankful to my faculty guide Prof. Kedar bhatt from CENTER FOR MANAGEMENT STUDIES
GANPAT UNIVERSITY, for being a source of support during this training period. Last but not the
least I am grateful to all the staff members of CENTRAL BANK for their kind cooperation and help
during the course of my project.
KARISHMA MAKRANI

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Table of Content
CH. No. INDEX PAGE NO.
Title page of project 1
CERTIFICATEFROMCOMPANY 2
CERTIFICATEBY FACULTY GUIDE 3
CANDIDATE’SSTATEMENT 4
PREFACE 5
ACKNOWLEDGEMENTS 6
1 COMPANY PROFILE 7 to 13
1.1 Introduction
1.2 History
2 SERVICE QUALITY IN BANK 14 to 19
3 LITERATURE REVIEW 20 to 24
4 RESEARCH METHODOLOGY 25 to 27
5 ANALYSIS AND INTERPRETATION 28 to 42
6 FINDINGS 43 to 44
7 CONCLUSION 45 to 46
8 REFERENCE 47 to 49
9 ANNEXURE 50 to 52

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CHAPTER -1
COMPANY
PROFILE
1.1) Introduction of bank:

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Central Bank of India, a government-owned bank, is one of the oldest and largest commercial banks in
India. It is based in Mumbai which is the financial capital of India and capital city of state
of Maharashtra. The bank has 4600 branches and 4 extension counters across 27 Indian states and three
Union Territories. At present, Central Bank of India has overseas office at Nairobi, Hong Kong and a
joint venture with Bank of India, Bank of Baroda, and the Zambian government. The Zambian
government holds 40 per cent stake and each of the banks has 20 per cent. Recently it has also opened a
representative office at Nairobi in Kenya.
Central bank of India is one of 18 Public Sector banks in India to get recapitalisation finance from the
government over the next 24 months.
Central Bank of India has approached the Reserve Bank of India (RBI) for permission to open
representative offices in five more locations - Singapore, Dubai, Doha and London.
As on 31 March 2011, the bank's reserves and surplus stood at ₹ 68688 million. Its total business at the
end of the last fiscal amounted to ₹ 2, 22,124(approx) million.
1.2) History:-
It was established on 21 December 1911 by Sir Sorabji Pochkhanawala with Sir Pheroze shah Mehta as
Chairman, and claims to have been the first commercial Indian bank completely owned and managed by
Indians.
By 1918 it had established a branch in Hyderabad. A branch in nearby Secunderabad followed in 1925.
In 1923, it acquired the Tata Industrial Bank in the wake of the failure of the Alliance Bank of Simla.
The Tata bank, established in 1917, had opened a branch in Madras in 1920 that became the Central
Bank of India, Madras.
Central Bank of India was instrumental in the creation of the first Indian exchange bank, the Central
Exchange Bank of India, which opened in London in 1936. However, Barclays Bank acquired Central
Exchange Bank of India in 1938.
Also before World War II, Central Bank of India established a branch in Rangoon. The branch's
operations concentrated on business between Burma and India, and especially money transmission via
telegraphic transfer. Profits derived primarily from foreign exchange and margins. The bank also lent
against land, produce, and other assets, mostly to Indian businesses.
Post-World War II

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In 1963, the revolutionary government in Burma nationalized Central Bank of India's operations there,
which became People's Bank No. 1.
In 1969, the Indian Government nationalized the bank on 19 July, together with 13 others.
In the 1980s the managers of the London branches of Central Bank of India, Punjab National Bank,
and Union Bank of India were caught up in a fraud in which they made dubious loans to the
Bangladeshi jute trader Rajender Singh Sethia. The regulatory authorities in England and India forced
all three Indian banks to close their London branches.
Central Bank of India was one of the first banks in India to issue credit cards in the year 1980 in
collaboration with MasterCard. Central Bank of India announces that the financial results for the year
ended 2013-Total Business Rs. 402000 Cr. Net Profit-Rs. 1015 Cr. On 1 August 2013, Central Bank of
India appoints new CMD Rajiv Rishi, who was previously ED of Indian Bank and General Manager of
OBC and Raj Kumar Goyal as the new ED of the bank. On 1 November of the same year, the bank open
its second representative office in Hong Kong.
MISSION
♦ To transform the customer banking experience into a fruitful and enjoyable one.
♦ To leverage technology for efficient and effective delivery of all banking services.
♦ To have bouquet of product and services tailor-made to meet customers’ aspirations.
♦ The pan-India spread of branches across all the state of the country will be utilized to further the socio
economic objective of the Government of India with emphasis on Financial Inclusion.
VISION
To emerge as a strong, vibrant and pro-active Bank/Financial Super Market and to positively contribute
to the emerging needs of the economy through consistent harmonization of human, financial and
technological resources and effective risk control systems.
SWOT Analysis

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Management - Central Bank
Strength
1.Large network across
2. Expertise in small and medium enterprise b
3. Active in Government schemes for agro based and small scale ind
4. The bank has 3,500 branches and 270 extension counters across 27 Indian states
Weakness
1. Personal banking in growing stage
2. Less international presence
3. Low advertising and brand presence
Opportunity
1.Initiative for self-employment amongst
2. Favourable Government schemes
Threats
1. Fluctuating economic sc
2.Highly competitive envir
3. Policies of the government

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Name Designation
Rajeev Rishi Chairman & Managing Director
B K Divakara Executive Director
Saurabh Garg Nominee Director
Krishan Sethi Part Time Non Official Director
N S Rathnaprabha Part Time Non Official Director
Gurbax Kumar Joshi Workmen Employee Director
Name Designation
R K Goyal Executive Director
R C Lodha Executive Director
Shekhar Bhatnagar Nominee Director
M P Shorawala Part Time Non Official Director
S B Rode Employee Director
Branches

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These are the branches of Central Bank of India:
 ANDAMAN & NICOBAR
 ANDHRA PRADESH
 ARUNACHAL PRADESH
 ASSAM
 BANKA
 BIHAR
 CHANDIGARH
 CHHATTISGARH
 DADRA&NAGAR HAVELI
 DAMAN & DIU
 DELHI
 GOA
 GREATER BOMBAY
 GUJARAT
 HANUMANGARH
 HARYANA
 HIMACHAL PRADESH
 JAMMU & KASHMIR
 JHARKHAND
 KARNATAKA
 KERALA
 MADHYA PRADESH
 MAHARASHTRA
 MANIPUR
 MEGHALAYA
 MIZORAM

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 MP
 NAGALAND
 NALANDA
 ORISSA
 PONDICHERRY
 PUNJAB
 RAJASTHAN
 SIKKIM
 TAMIL NADU
 TRIPURA
 UTTAR PRADESH
 UTTARAKHAND
 UTTARANCHAL
 WEST BENGAL
Chapter-2

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SERVICE QUALITY IN BANK
Service with a smile:

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Today’s finicky banking customers will settle for nothing less. The customer has come to realize
Somewhat belatedly that he is the king. The customer’s choice of one entity over another as his principal
bank is determined by considerations of service quality rather than any other factor. He wants
competitive loan rates but at the same time also wants his loan or credit card application processed in
double quick time. He insists that he be promptly informed of changes in deposit rates and service
charges and he bristles with customary rage if his bank is slow to redress any grievance he may have. He
cherishes the convenience of impersonal net banking but during his occasional visits to the branch he
also wants the comfort of personalized human interactions and facilities that make his banking
experience pleasurable. In short he wants financial house that will more than just clear his cheque and
updates his passbook: he wants a bank that cares and provides great services.
So does CENTRAL bank meet these heightened expectations? What are the customers‟ perceptions of
service quality of the banks? Which dimension of service quality of CENTRAL bank is performing
well? A lot of surveys have been done in the past to understand the aspect of customer satisfaction and
to find out the customer friendly banks. My research is conducted to find out “SERVICE QUALITY OF
CENTRAL BANK”.
In the days of intense competition, the banks are no different from any other consumer marketing
company. It has become essential for the service firms in general and banks in particular to identify what
the customer's requirements are and how those customer requirements can be met effectively. In the
days where product and price differences are blurred, superior service by the service provider is the only
differentiator left before the banks to attract, retain and partner with the customers. Superior service
quality enables a firm to differentiate itself from its competition, gain a sustainable competitive
advantage, and enhance efficiency .The benefits of service quality include increased customer
satisfaction, improved customer retention, positive word of mouth, reduced staff turnover, decreased
operating costs, enlarged market share, increased profitability, and improved financial performance. The
construct of service quality has therefore been a subject of great interest to service marketing
researchers.
Service quality has been defined by various experts in various ways as: 'Service Quality is the difference
between customers' expectations for service performance prior to the service encounter and their
perceptions of the service received.' According to Gefan „Service quality is the subjective comparison
that customers make between the qualities of service that they want to receive and what they actually
get.' Parasuraman says, 'Service quality is determined by the differences between customer's
expectations of services provider's performance and their evaluation of the services they received.
Service quality is 'the delivery of excellent or superior service relative to customer expectations‟.
Service quality is recognized as a multidimensional construct. While the number of dimensions often
varies from researcher to researcher, there is some consensus that service quality consists of three
primary aspects: outcome quality, interaction quality, and physical service environment quality.
Outcome quality refers to the customer's assessment of the core service which is the prime motivating

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factor for obtaining the services (e.g. money received from ATM). Interaction quality refers to the
customer's assessment of the service delivery process, which is typically rendered via a physical
interface between the service provider, in person, or via technical equipment, and the customer. It
includes, for instance, the consumer's evaluation of the attitude of the service providing staff. The
physical service environment quality dimension refers to the consumer's evaluation of any tangible
aspect associated with the facilities or equipment that the service is provided in/ with. It includes, for
example, the physical conditions of an ATM machine.
The most popular dimensions of service quality--features five dimensions: tangibles, reliability,
responsiveness, empathy, and assurance. The tangibles dimension corresponds to the aforementioned
physical environment aspect, the reliability dimension corresponds to the service outcome aspect, and
the remaining three represent aspects of interaction quality. Both the costs and the revenue of firms are
affected by repeat purchases, positive word-of-mouth recommendation, and customer feedback.
Moreover, there is strong evidence that service quality has either a direct influence on the behavioral
intentions of customers and/or an indirect influence on such intentions, mediated through customer
satisfaction.
RATER is an instrument that might be used to define and measure banking service quality and to create
useful quality-assessment tools.
The RATER may finally provide the following benefits to the central bank:
1. It is the first approach to add and mix the customers‟ religious beliefs and cultural values with other
quality dimensions.
2. It provides for multi-faced analysis of customer satisfaction.
3. It links quality with customer’s satisfaction and service encounter.
4. It provides information at several levels, already organized into meaningful groupings.
5. It is a proven approach, which results in usable answers to meet customers’ needs.
6. It is empirically grounded, systematic and well documented.
Banks managers can use the RATER model and its dimensions first to identify the following issues:

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RESPONSIVENES
RELIABILITY
ASSURANCEEMPATHY
TANGIBILIT

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DIMENSIONS OF SERVICE QUALITY
TANGIBILITY: This dimension deal with modern looking equipments and visual appealing part of
banks.
RELIABILITY: This dimension has a direct positive effect on perceived service quality and customer
satisfaction in banking institutions. Banks must provide error free service and secure online transactions
to make customers feel comfortable.
RESPONSIVENESS: Customers expect that the banks must respond their inquiry promptly.
Responsiveness describes how often a bank voluntarily provides services that are important to its
customers. Researchers examining the responsiveness of banking services have highlighted the
importance of perceived service quality and customer satisfaction.
ASSURANCE: Customer expects that the bank must be secured and the behaviour of the employees
must be encouraging.
EMPATHY: individual attention, customized service and convenient banking hours are very much
important in today’s service.
In order to achieve better understanding of service quality in banking sector, the proposed five service
quality dimensions are conceptualized to illustrate the overall service quality of the banking in relation
to customers‟ and providers perspective.
Banking was in the sector featuring medium goods and higher customer producer interactions, since in
banking, consumers and service providers interact personally and the use of goods is at a medium level.
Hence, in banking, where there are high customer-producer interactions, the quality of service is
determined to a large extent by the skills and attitudes of people producing the service.
In the case of services, because customers are often either direct observers of the production process or
active participants, how the process is performed also has a strong influence on the overall impression of
the quality of service. A well-performed service encounter may even overcome the negative impression
caused by poor technical quality as well as generate positive word-of-mouth, particularly if customers
can see that employees have worked very hard to satisfy them in the face of problems outside their
control. Employees are part of the process, which connects with the customer at the point of sale, and
hence employees remain the key to success at these service encounters or “moments of truth”. It is these
encounters with customers during a service that are the most important determinants of overall customer
satisfaction, and a customer’s experience with the service will be defined by the brief experience with
the firm’s personnel and the firm’s systems. The rudeness of the bank’s customer service representative,
the abruptness of the employee at the teller counter, or the lack of interest of the person at the check
deposit counter can alter one’s overall attitude towards the service, perhaps even reversing the
impression caused by high technical quality.

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Another important service quality factor, competence, is defined by whether the bank performs the
service right the first time, whether the employees of the bank tell customers exactly when services will
be performed, whether the bank lives up to its promises, whether customers feel safe in their
transactions with the bank and whether the employees show a sincere interest in solving the customers‟
problems. In short, this dimension is related to the banks‟ ability to perform the promised service
accurately and dependably. Performing the service dependably and accurately is the heart of service
marketing excellence. When a company performs a service carelessly, when it makes avoidable
mistakes, and when it fails to deliver on promises made to attract customers, it shakes customers‟
confidence in its capabilities and undermines its chances of earning a reputation for service excellence.
It is very important to do the service right the first time. In case a service problem does crop up, by
resolving the problem to the customer’s satisfaction, the company can significantly improve customer
retention. However, companies fare best when they prevent service problems altogether and fare worst
when service problems occur and the company either ignores them or does not resolve them to the
customer’s satisfaction.
Performing the service accurately is perhaps the most important factor in service quality excellence. The
cost of performing the service inaccurately includes not only the cost of redoing the service but also the
cost associated with negative word-of-mouth generated by displeased customers. In case of services, the
factory is the field. Again, services are intangible and hence the criteria for flawless services are more
subjective than the criteria for defect-free tangible goods. Hence for most services, customers‟
perceptions of whether the service has been performed correctly, and not provider-established criteria,
are the major determinants of reliability.
The service quality factor tangible is defined by whether the physical facilities and materials associated
with the service are visually appealing at the bank. These are all factors that customers notice before or
upon entering the bank. Such visual factors help consumers form their initial impressions. A crucial
challenge in service marketing is that customers cannot see a service but can see the various tangibles
associated with it - all these tangibles, the service facilities, equipment and communication materials are
clues about the intangible service. If unmanaged, these clues can send to the customer’s wrong messages
about the service and render ineffective the marketing strategy of the company. On the other hand,
improving quality through tangibles means attention to the smallest details that competitors might
consider trivial. Yet, these visible details can add up for customers and signal a message of caring and
competence.
Customers may reveal new aspects of service quality in banking that are important to them, and these
would have to be incorporated in the scale so as to further explore the concept of service quality in the
banking arena.

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.
CHAPTER - 3
Literature review

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“SERVICE” That is “S” stands for “Satisfaction”, “E” stands for “Expectation”, “R”
stands for “readiness”, “V” is “Value”, “I” is “Interest”, “C” is “Courtesy” and “E” is
“efficiency” (Proomprow,2003).
Service quality has defined as the difference between customer expectations of a service
and his/her perception of the service performance. When expectations are not met, customers are
dissatisfied with service quality. When expectations match perception, the customer is satisfied
with the quality of the service.
Though Robinson (1999) says, "It is apparent that there is little consensus of opinion and
much disagreement about how to measure service quality"
Gronroos (1982) described the total service quality as customer’s perception of
difference between the expected service and the perceived service.
Asubanteng, Mccleary and Swan (1996) defined service quality as the difference between
customer’s expectations for service performance prior to the service encounter and their
perception of the service received.
Gefan (2002) defined that service quality as the subjective comparison that customers
make between the quality of the service that they want to receive and what they actually get.
Parasuraman, Zeithaml and Berry (1985) defined service quality as the comparison between
customer expectation and perception of service. In addition, they suggested three underlying
themes after examination of the previous writing and literature on service.
1) Service quality is more difficult for customer to evaluate than goods quality,
2) Service quality perception result from a comparison of consumer expectations with actual
service performance, and
3) Quality evaluations are not made solely on the outcome of service; they also involve
evaluation of the process of service process of service delivery.
Service quality has defined as the difference between customer expectations of a service
and his/he perception of the service performance. When expectations are not met, customers are
dissatisfied with service quality. When expectations match perception, the customer is satisfied with the
quality of the service. Finally, when expectations are exceeded, the quality of the service is perceived to
be exceptional and moreover, a pleasant surprise. Gronross (1982); Lewis and Booms (1983);
Parasuraman et. al., (1985) have stated that SERVQUAL is considered as a common approach for
measuring service quality which compares customers' expectations before a service encounter and their
perceptions of the actual service delivered. Zeithaml, Berry and Parasuraman (1993) clearly categorize
the region the "Zone of tolerance" which is restricted by the adequate expectations at the lower end, that
is, what the customer will expect and accept and by the desired expectations at the upper end, that is,
what the customers believes should be provided by an excellent organization. The study also measured
adequate and desired service quality expectations using the SERVQUAL scale (Parasuraman. Zeithaml
and Berry, 1988, 1991). In practice, many studies have found these dimensions difficult to replicate
(Carman, 1990; Bouman and Vander Wielde, 1992; Brown, Churchill and Peter, 1993).

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Obviously, from a standpoint of best assessment of the measurement of service quality
in the service sector should consider customer expectations of service as well as perceptions of
service. Though Robinson (1999) says, "It is apparent that there is little consensus of opinion and
much disagreement about how to measure service quality", a unique service quality
measurement model that has been extensively applied is the SERVQUAL model developed by
Parasuraman et al., (1985, 1986, 1988, 1991, 1993, 1994; Zeithaml et al., 1990).
The SERVQUAL instrument has been the predominant method used to measure customers'
perceptions of service quality. In principle, SERVQUAL comprises five dimensions: tangibles,
responsiveness, reliability, assurance and empathy.(Van Iwaarden et al., 2003), as follows:
Tangibles includes physical facilities, equipment and appearance of personnel. Reliability
indicates the ability of the service provider to perform the promised service dependably and
accurately. Responsiveness means the willingness to help the customers and provide prompt
service to them. Assurance includes competence, courtesy, credibility and security of the
employees and their ability to inspire trust and confidence. Empathy includes access,
communication, understanding the customer by the employees. This will lead to caring and
individualized attention that the firm provides to its customers.
Parasuraman, Zeithaml and Berry (1985) have recommended that the customer
satisfaction is highly determined by the perception of service quality. This statement establishes
that the customer is satisfied with the service if he perceives the service to be of high quality. On
the other hand, some others believe that if the customer is satisfied with the service, they
perceive it to be of high quality. Bitner (1990) and Bolton and Drew (1991) agreed with this
view and said satisfaction is antecedent of service quality. This was explained by a theoretical
approach "Zone of tolerance", proposed by Zeithaml, Berry and Parasuraman (1993). This model
reveals two levels of expectations, one being the desired service level which represents a mixture
of what customers believe “can be" and "should be" provided to them (Brown and Swartz,
1989). The other is adequate service, which is the minimum level of service a customer will
accept (Woodruf, Cadotte and Jenkins, 1987). The customer satisfaction lies between the two
levels of customer service expectations and is known as the "Zone of Tolerance'. Horstmann
(1998) says that there is a strong association between customer satisfaction and loyalty. The
degree of customer satisfaction determines the loyalty. The higher the degree of satisfaction, the
higher is the level of loyalty. A "very satisfied' customer repurchases a product six times more
than a "satisfied" customer (Matzler & Hinterhuber, 1998, Hart & Johnson in Gronroos, 2000).
However, it is to be noted that the level of satisfaction should not be exceeded much because the
customers' expectations will also increase further. This will be an on-going process and this will
result in the increase in an increasing trend in the expectations of the customers which
automatically results in the increase of service failure risks. Therefore, it is essential that the
satisfaction level is increased by minute stepladder to avoid the risk of customers' dissatisfaction
in the future. Satisfaction may be influenced by a number of factors, but this study concentrates
on the relationship between customer satisfaction and service quality. Quality is whatever the
customer perceives it to be (Gronroos, 2000). Therefore, service quality is the result from

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comparisons made by consumers between their expectations and their perception of the actual
service performance [Lewis,(1989) in Bahia and Nantel (2000)].
SERVICE QUALITY IN BANKING
The service quality has been wildly used to assess the service performance of various
service organization including banks (Newman, cowling and Leigh, 1998). Joseph, McClure and
Joseph (1999) investigated the influence of technology, such as the ATM, telephone, and
internet, on the delivery of banking service. Their study identified six underlying dimensions of
electronic banking service quality. These dimensions are convenience / accuracy, feedback /
complaint management, efficiency, queue management, accessibility and customization.
Bahia and nantel (2000) also proposed an alternative measure of perceived service
quality in retail banking that comprises thirty one items with six underlying key dimensions.
These dimensions are: effectiveness and assurance, access, price, tangibles, service portfolio and
reliability.
The remaining eight dimensions were previously identified by Parauraman et al. (1985).
Reliability refers correct service, keep service promise, accurate records and keep promise as
advertised. Responsiveness refers prompt service. Competence means ability to solve problems
and knowledge to answer questions. Courtesy include address complaints friendly and
consistency courtesy. Credibility means confidences in the bank service good reputation.
Access includes availability for help, ATM access, phone access. E-mail access, account access
when going abroad. Communication means clear answer, informing customer of important
information and availability of status of truncations. Understanding of customer means
personal attention. Collaboration includes external collaboration and internal collaboration.
Continuous improvement includes continuous improvement on online systems, continuous
improvement on banking products and continuous improvement on services. Jun and Cai (2001)
identified three broad conceptual categories related to internet banking service quality:
1. Customer service quality; there are ten dimensions as following: reliability, responsiveness,
competence, courtesy, credibility, access, communication, understanding the customer,
collaboration and continuous improvement. The two dimensions, collaboration improvement
are found as new dimensions for internet banking.
2. Online systems quality: six dimensions are contents, accuracy, ease of use, timelines,
aesthetics and security.
3. Banking service product quality has only one dimension, product variety / diverse feature.

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SERVICE QUALITY DIMENSIONS
Bayel & Janalgie (1994) had set their goals of services quality dimensions in Retail
Banking. First the study investigates & identifies the services quality dimensions pertaining to
financial services. Secondly, it examines the relationship between perception accorded to these
dimensions & the overall attitude towards the banking. Thirdly, it examines the important
discrimination in service quality factors among the different group of banks by paired comparison.
Accounting to Parasuraman et al.’s (1985), ten detailed dimensions of service quality
through focus group studies are listed as: reliability, responsiveness, competence, access,
courtesy, communication, credibility, security, competence, understanding the customer and
tangibles. Among these ten service quality determinates, reliability is the most important
dimension. Detailed explanation will be described below.
Reliability: It means that the firm performs the service right the first time and the firm honours
its promises.
Responsiveness: It concerns the willingness or readiness of employees of employees to provide
service.
Tangibles: It includes the physical evidence of the services. (Parasuranman et.al., 1985)

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CHAPTER: 4
RESERCH METHODOLOGY

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Reserch objective:-
 To Study of perception about service quality offered by bank.
 To know in which service quality dimension the bank is performing well and in which
dimension it needs improvement.
Research Design:-
1. Type Of Research :-
A. Exploratory Research
B. Conclusive Research
A. Method for conducting Exploratory Research :-
Primary Data:
The primary data was collected by means of a survey. Questionnaires were prepared and customers of
the banks at two branches were approached to fill up the questionnaires. The questionnaire contains 20
questions which reflect on the type and quality of services provided by the banks to the customers. The
response of the customer and the is recorded on a grade scale of strongly disagree, disagree, uncertain,
agree and strongly agree for each question. The filled up information was later analyzed to obtain the
required interpretation and the findings.
Secondary Data:
In order to have a proper understanding of the service quality of bank a depth study was done from the
various sources such as books, a lot of data is also collected from the official websites of the banks and
the articles from various search engines like Google, yahoo search and answers.com.
(II) Qualitative Research:-
 Direct Method
- In-Depth Interview

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B. Method for conduction conclusive research:-
(I) Descriptive Research
 Cross Sectional
Single Cross Sectional
 (II) Method for conducting:-
Survey
Target population:
I. Target population:
All customers of CENTRAL BANK
II Sampling Element:
Customers of CENTRAL BANK
III Sample size:
Since the population is large the survey has been carried among a sample of 100
customers of central bank.
IV. Sampling method:
Convenience method
C. Data Analysis Technique:
 One sample t-test
 Descriptive research
 Anova
Data Collection Tool:- Questionnaire

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Chapter: 5
Data Analysis and Interpretation

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1) What is your gender?
Gender
Frequency Percent Valid Percent Cumulative
Percent
Valid
male 53 53.0 53.0 53.0
female 47 47.0 47.0 100.0
Total 100 100.0 100.0
Interpretation
Out of 100 samples, which male respondents are 53% and female are 47%.

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2) What age group do you belong to
Age
Percent
Valid
16-25 39 39.0 39.0 39.0
26-35 28 28.0 28.0 67.0
36-45 22 22.0 22.0 89.0
above 45 11 11.0 11.0 100.0
Total 100 100.0 100.0
Interpretation:-
From the table and graph above it can be seen that
39% respondent’s age are 16 to 25 years.
28% respondent’s age are 26 to 35 years.
22% respondent’s age are 36 to 45 years..
11% respondent’s age are above 45 years.

31
What is the highest degree or level of education you have completed?
education
Percent
Valid
high school 19 19.0 19.0 19.0
graduate 47 47.0 47.0 66.0
postgraduate 25 25.0 25.0 91.0
other 9 9.0 9.0 100.0
Total 100 100.0 100.0
Interpretation:-
From the table above it can be seen that. 19% respondents are high school , 47% respondents are
Graduate, 25% respondents are Post graduate, 9% respondents are other.

32
4) What is your occupation?
occupation
Percent
Valid
student 26 26.0 26.0 26.0
business 23 23.0 23.0 49.0
private job 23 23.0 23.0 72.0
govt. job 16 16.0 16.0 88.0
other 12 12.0 12.0 100.0
Total 100 100.0 100.0
Interpretation:-
Out of 100 samples 26% respondents were from student, 23% respondents were from business, 23%
respondents were from self-private job, 16% respondents were from Govt job, 12% respondents were
from other

33
4) What is your yearly income?
income
Percent
Valid
<2 lakh 21 21.0 21.0 21.0
2.1 to 5 lakh 18 18.0 18.0 39.0
5.1 to 10 lakh 21 21.0 21.0 60.0
above 10.1 lakh 12 12.0 12.0 72.0
not applicable 28 28.0 28.0 100.0
Total 100 100.0 100.0
Interpretation:-
Out of 100 samples 21% respondents are having a <2 lakh yearly income, 18% respondents are having
2.1 to 5 lakh, 21% respondents are having 5.1 to 10 lakh, 12% respondents are having above 10.1
lakh, 28% respondents are not applicable

34
Descriptive statistics for service quality variable.
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
modern_looking_equipment 100 1.00 5.00 3.2000 .84087
physical_features_appealin
g
100 1.00 5.00 3.0000 1.00504
employee_neat_appearing 100 1.00 5.00 2.9200 1.03162
materials_appealing 100 1.00 5.00 3.2700 .98324
certain_time 100 1.00 5.00 2.6800 1.04330
solving_problem 100 1.00 5.00 3.0200 1.08227
service_right_first_time 100 1.00 5.00 3.0600 1.06192
error_free_records 100 1.00 5.00 3.1000 1.13262
exactly_service_performed 100 1.00 33.00 3.3200 3.19052
prompt_service 100 1.00 5.00 3.2800 1.10170
always_helping 100 1.00 5.00 2.9400 1.19612
prompt_repond 100 1.00 5.00 2.9800 1.13689
trust_worthy 100 1.00 5.00 2.9900 1.16771
behaviour_of_employee 100 1.00 5.00 2.9700 1.28279
safe_transaction 100 1.00 5.00 3.2300 1.08110
knowledge_to_your_questio
n
100 1.00 5.00 3.1200 1.22499
individual_attention 100 1.00 5.00 3.0600 1.26985
operating_hour_to_custome
rs
100 1.00 5.00 2.9000 1.09637
best_intrest_at_heart 100 1.00 5.00 2.8600 1.16359
understand_specific_needs 100 1.00 5.00 2.8800 1.19155
Valid N (listwise) 100

35
One-Sample Statistics
N Mean Std. Deviation Std. Error Mean
modern_looking_equipment 100 3.2000 .84087 .08409
physical_features_appealin
g
100 3.0000 1.00504 .10050
employee_neat_appearing 100 2.9200 1.03162 .10316
materials_appealing 100 3.2700 .98324 .09832
certain_time 100 2.6800 1.04330 .10433
solving_problem 100 3.0200 1.08227 .10823
service_right_first_time 100 3.0600 1.06192 .10619
error_free_records 100 3.1000 1.13262 .11326
exactly_service_performed 100 3.3200 3.19052 .31905
prompt_service 100 3.2800 1.10170 .11017
always_helping 100 2.9400 1.19612 .11961
prompt_repond 100 2.9800 1.13689 .11369
trust_worthy 100 2.9900 1.16771 .11677
behaviour_of_employee 100 2.9700 1.28279 .12828
safe_transaction 100 3.2300 1.08110 .10811
knowledge_to_your_questio
n
100 3.1200 1.22499 .12250
individual_attention 100 3.0600 1.26985 .12699
operating_hour_to_custome
rs
100 2.9000 1.09637 .10964
best_intrest_at_heart 100 2.8600 1.16359 .11636
understand_specific_needs 100 2.8800 1.19155 .11916

36
One-Sample Test
Test Value = 3
t df Sig. (2-tailed) Mean Difference 95% Confidence Interval of the
Difference
Lower Upper
modern_looking_equipment 2.378 99 .019 .20000 .0332 .3668
physical_features_appealing .000 99 1.000 .00000 -.1994 .1994
employee_neat_appearing -.775 99 .440 -.08000 -.2847 .1247
materials_appealing 2.746 99 .007 .27000 .0749 .4651
certain_time -3.067 99 .003 -.32000 -.5270 -.1130
solving_problem .185 99 .854 .02000 -.1947 .2347
service_right_first_time .565 99 .573 .06000 -.1507 .2707
error_free_records .883 99 .379 .10000 -.1247 .3247
exactly_service_performed 1.003 99 .318 .32000 -.3131 .9531
prompt_service 2.542 99 .013 .28000 .0614 .4986
always_helping -.502 99 .617 -.06000 -.2973 .1773
prompt_repond -.176 99 .861 -.02000 -.2456 .2056
trust_worthy -.086 99 .932 -.01000 -.2417 .2217
behaviour_of_employee -.234 99 .816 -.03000 -.2845 .2245
safe_transaction 2.127 99 .036 .23000 .0155 .4445
knowledge_to_your_question .980 99 .330 .12000 -.1231 .3631
individual_attention .472 99 .638 .06000 -.1920 .3120
operating_hour_to_customer
s
-.912 99 .364 -.10000 -.3175 .1175
best_intrest_at_heart -1.203 99 .232 -.14000 -.3709 .0909
understand_specific_needs -1.007 99 .316 -.12000 -.3564 .1164

37
 As shown in table, the significance level for modern equipment is less than .05. Thus, the mean
score of perception for modern equipment is significantly greater than 3. And customer
perception for this variable is good.
 As shown in table, the significance level for physical_features_appealing is greater than .05.
Thus, the mean score of perception for physical_features_appealing is significantly 3. And
customer perception for this vari.
 As shown in table, the significance level for physical_features_appealing is greater than .05.
Thus, the mean score of perception for physical_features_appealing is significantly less than 3.
And customer perception for this variable is not so good.
 As shown in table, the significance level for materials_appealing is less than .05. Thus, the mean
score of perception for materials_appealing is significantly greater than 3. And customer
 As shown in table, the significance level for certain_time is less than .05. Thus, the mean score
of perception for certain_time is significantly less than 3. And customer perception for this
variable is not so good.
 As shown in table, the significance level for solving_problem is greater than .05. Thus, the mean
score of perception for solving_problem is significantly greater than 3. And customer perception
for this variable is good.
 As shown in table, the significance level for service_right_first_time is greater than .05. Thus,
the mean score of perception for service_right_first_time is significantly greater than 3. And
customer perception for this variable is good.
 As shown in table, the significance level for error_free_records is greater than .05. Thus, the
mean score of perception for error_free_records is significantly greater than 3. And customer
 As shown in table, the significance level for exactly_service_performed is greater than .05. Thus,
the mean score of perception for exactly_service_performed is significantly greater than 3. And
customer perception for this variable is good.
 As shown in table, the significance level for prompt_service is less than .05. Thus, the mean
score of perception for prompt_service is significantly greater than 3. And customer perception
for this variable is good.
 As shown in table, the significance level for always_helping is greater than .05. Thus, the mean
score of perception for always_helping is significantly less than 3. And customer perception for
this variable is not so good.

38
 As shown in table, the significance level for prompt_repond is greater than .05. Thus, the mean
score of perception for prompt_repond is significantly less than 3. And customer perception for
this variable is not so good.
 As shown in table, the significance level for trust_worthy is greater than .05. Thus, the mean
score of perception for trust_worthy is significantly less than 3. And customer perception for this
variable is not so good.
 As shown in table, the significance level for behaviour_of_employee is greater than .05. Thus,
the mean score of perception for behaviour_of_employee is significantly less than 3. And
customer perception for this variable is not so good.
 As shown in table, the significance level for safe_transaction is less than .05. Thus, the mean
score of perception for safe_transaction is significantly greater than 3. And customer perception
for this variable is good
 As shown in table, the significance level for knowledge_to_your_question is greater than .05.
Thus, the mean score of perception for knowledge_to_your_question is significantly greater than
3. And customer perception for this variable is good
 As shown in table, the significance level for individual_attention is greater than .05. Thus, the
mean score of perception for individual_attention is significantly greater than 3. And customer
perception for this variable is good
 As shown in table, the significance level for operating_hour_to_customers is greater than .05.
Thus, the mean score of perception for operating_hour_to_customers is significantly less than 3.
And customer perception for this variable is not so good
 As shown in table, the significance level for best_intrest_at_heart is greater than .05. Thus, the
mean score of perception for best_intrest_at_heart is significantly less than 3. And customer
perception for this variable is not so good
 As shown in table, the significance level for understand_specific_needs is greater than .05. Thus,
the mean score of perception for understand_specific_needs is significantly less than 3. And
customer perception for this variable is not so good

39
ANOVA:
TO study impact of demographic variables on service quality dimension.
Age:-
ANOVA
Sum of Squares df Mean Square F Sig.
Tangible
Between Groups 1.117 3 .372 1.375 .255
Within Groups 25.995 96 .271
Total 27.112 99
Reliability
Between Groups 1.310 3 .437 1.535 .211
Total 28.628 99
responsiveness
Between Groups .436 3 .145 .116 .950
Within Groups 120.124 96 1.251
Total 120.560 99
assurance
Between Groups 1.257 3 .419 .897 .446
Total 46.087 99
Empathy
Between Groups .347 3 .116 .292 .831
Total 38.438 99
H0= There is no difference in perception towards service quality dimensions between different age
groups
H1= There is difference in perception towards service quality dimensions between different age
groups
As shown in above table significance value for 5 dimensions, empathy and tangible reliability
assurance and empathy is greater than 0.05 so null hypothesis is accepted, and there is no
significant difference in perception towards these dimensions between different age groups.

40
Education:-
ANOVA
Tangible
Between Groups 3.350 3 1.117 4.511 .005
Total 27.112 99
Reliability
Between Groups 1.012 3 .337 1.173 .324
Total 28.628 99
responsiveness
Between Groups 1.087 3 .362 .291 .832
Total 120.560 99
assurance
Between Groups 2.000 3 .667 1.452 .233
Total 46.087 99
Empathy
Between Groups 3.086 3 1.029 2.793 .044
Total 38.438 99
H0= There is no difference in perception towards service quality dimensions between different
education groups.
H1= There is difference in perception towards service quality dimensions between different
education groups
As shown in above table significance value for 2 dimensions, empathy and tangible is less than
0.05 so alternative hypothesis is accepted, and there is significant difference in perception
towards these dimensions between different education groups

41
Occupation:-
occupation groups.
occupation groups
As shown in above table significance value for 2 dimensions reliability and tangible is less than
0.05 so alternative hypothesis is accepted, there is significant difference in perception towards
these dimensions between different occupation groups.
ANOVA
Tangible
Between Groups 5.667 4 1.417 6.276 .000
Total 27.112 99
Reliability
Between Groups 2.964 4 .741 2.743 .033
Total 28.628 99
Responsiveness
Between Groups 3.820 4 .955 .777 .543
Total 120.560 99
Assurance
Between Groups 2.795 4 .699 1.533 .199
Total 46.087 99
Empathy
Between Groups .465 4 .116 .291 .883
Total 38.438 99

42
INCOME:-
ANOVA
Sum of Squares Df Mean Square F Sig.
Tangible
Between Groups .882 4 .221 .799 .529
Total 27.112 99
Reliability
Between Groups 1.908 4 .477 1.696 .157
Total 28.628 99
Responsiveness
Between Groups 8.207 4 2.052 1.735 .149
Total 120.560 99
Assurance
Between Groups .515 4 .129 .268 .898
Total 46.087 99
Empathy
Between Groups 1.402 4 .350 .899 .468
Total 38.438 99
income groups.
income groups
As shown in above table significance value for 5 dimensions, empathy and tangible reliability
assurance and empathy is greater than 0.05 so null hypothesis is accepted there is significant
difference in perception towards these dimensions between different income groups
.

44
The aim of this study was to investigate factors that affect quality of customer’s service in banking
industry. From the findings the following was established. On gender analysis, most of the respondents
were male representing a total of 57% and female 43%. The age level of majority of the respondents
who are having an account in Central Bank of India bank fall under the age level 16 to 25 year. The
income level of majority of the respondents who are having an account in central bank of India bank fall
under the monthly income level < 2 lakh and 5.1 to 10 lakh. Some of the respondents choose the Central
Bank of India because the bank is providing more good facility to the customers. From the anova on age
analysis, of significant level is greater than 0.05 so that there is no significant impact of education on
empathy and tangibles, reliability,assurance and empathy. On education Analysis, 2 dimension empathy
and tangible value is less than 0.05 , there is significant impact of 2 dimension. On occupation analysis
dimension tangible and reliability value is less than 0.05 there is significant impact of 2 dimension.on
income analysis, that the value of significant level is greater than 0.05 there is no significant impact of
education on empathy and tangibles, reliability,assurance and empathy.

46
Service quality has defined as the difference between customer expectations of a service and his/her
perception of the service performance. When expectations are not met, customers are dissatisfied with
service quality. When expectations match perception, the customer is satisfied with the quality of the
service. From the preceding discussion it is clear that the banks in the post-liberalised phase of the
Indian economy have, to a large extent, matched the graph of customer perceptions and expectations
from each of the two. Further, as the study shows, quality parameters such as responsiveness, reliability,
tangibles, assurance and empathy greatly structure customers' expectations and perceptions of banking
sector service quality. They found that the elements that were considered important were reliability,
assurance, empathy and responsiveness.
. The purpose of my study is customer perception towards bank service quality in
central bank of india”. In my project I used research design was exploratory and Conclusive Research
Design type was Descriptive Research. In descriptive research I used single cross – section design .in
my research I used convenience sampling design. I used structure Questionnaire with 5 point likerd
scale, primary date collected from 100 respondents by personal meeting with the help of questioners,
secondary data: secondary data are collected from the website , news paper and previous research paper.
On gender analysis, most of the respondents were male representing a total of 57% , I used analysis
technique like discriptive,frequency distribution, one way anova in my research.

47
Reference:-
1) Ganesh P et. al. (2011) Determining the gap between customer Expectation and perception In
retail Banking
2) Er.Vishal Mohan Goyal (2011) Customer perception towards Internet banking w.r.f to private
and foreign banks in India
3) Praful S. Gudadhe (2013) Customer Perception Towards Products and Services Of State Bank of
India- With Special Reference to Yavatmal District, (M.S.) India
4) MALIKA RANI (2012) A STUDY ON THE CUSTOMER PERCEPTION TOWARDS E-
BANKING IN FEROZEPUR DISTRICT
5) YAP SHEAU FEN et al.(2000) SERVICE QUALITY AND CUSTOMER SATISFACTION:
ANTECEDENTS OF CUSTOMER’S RE-PATRONAGE INTENTIONS
6) Khushbu Agarwal et al. (2014) AN EMPIRICAL STUDY ON CUSTOMER SERVICES OF
SELECTED PRIVATE SECTOR BANKS WITH SPECIAL REFERENCE TO UDAIPUR
CITY
7) Dr. H. S. Sandhu et al. (2011) Customers’ Perception towards Service Quality of Life Insurance
Corporation of India: A Factor Analytic Approach
8) Jayaraman Munusamy et al. (2010) Service Quality Delivery and Its Impact on Customer
Satisfaction in the Banking Sector in Malaysia
9) Dima Al Eisawi (2012) Innovation as a Determinant for Service Excellence in Banking
10) Dr. M. Selvaraj (2012) Customer Perception towards service Quality in State Bank of India – An
Empirical Study
11) Shailesh Limbad (2013) Study the Customers’ Perception towards Banking Services: A
Research Report on Indian Public Sector Banks

48
12) Evelyn Omanukwue (2010) CUSTOMER PERCEPTION OF SERVICE QUALITY IN
BOUTIQUE HOTEL LE SIX PARIS
13) Lo Liang Kheng et. Al.(2013) The Impact of Service Quality on Customer Loyalty: A Study of
Banks in Penang, Malaysia
14) Mei Mei Lau et al.(2013) Measuring Service Quality in the Banking Industry: A Hong Kong
Based Study
15) Barbara R. lawis(1991)Service Quality: An International Comparison of Bank Customers'
Expectations and Perceptions
16) Mesay Sata Shanka (2012) Bank Service Quality, Customer Satisfaction and Loyalty in
Ethiopian Banking Sector
17) Rashed Al Karim et.Al.(2014) CUSTOMER SATISFACTION ON SERVICE QUALITY IN
PRIVATE COMMERCIAL BANKING SECTOR IN BANGLADESH
18) Ms. Linda Mary Simon (2012) A Study on Customer Perception Towards Services Provided By
Public Sector Bank and Private Sector Bank
19) Arpita Khare (2011) Customers’ perception and attitude towards service quality in multinational
banks in India
20) Ms. Fozia (2013) A Comparative Study of Customer Perception toward E-banking Services
Provided By Selected Private & Public Sector Bank in India
21) Rajesh Kumar Srivastava (2007) Customer’s perception on usage of internet banking
22) Dr. Catherine Rossiter (2010) Customer’s perception of service quality in the commercial
banking sector of Nigeria:
23) Sarika Bindal et al.(2014) SERVICE QUALITY DIMENSIONS IN INDIAN BANKING
SECTOR (A STUDY OF HDFC BANK)
24) Vijay Kumbhar (2011) Factors aﬀecting on customers’ satisfaction an empirical investigation of
ATM service.
25) RAJDEEP SINGH et al.(2010) SERVQUAL and Model of Service Quality Gaps: A Framework
for Determining and Prioritizing Critical Factors from Faculty Perspective in Higher Education
26) Ali Dehghan(2013) Service Quality & Loyalty: A Review
27) A. Parasuraman et al.(1985)Conceptual Model of Service Quality and Its Implications for Future
Research
Dr. Arash Shahin (2012) SERVQUAL and Model of Service Quality Gaps: A Framework for
Determining and Prioritizing Critical Factors in Delivering Quality Services

49
28) Lord William Thomson Kelvin (1907) An Assessment of Service Quality in Banks.
29) Dr. Yassin Ibrahim et al.(2015) Analysis of Factors Affecting Service Quality: A Survey Study
in Bank of Abyssinia Alula Abanega Branch, Mekelle Ethiopia
30) RAM R. BISHU (2006) Service Quality: A Case Study of a Bank

50
QUESTIONNAIRE
Respected Sir/Madam
I am student of GANPAT UNIVERSITY, conducting a survey on
“CUSTOMER PERCEPTION TOWARDS SERVICE QUALITY IN CENTRAL
BANK OF INDIA”. The following statements relate to your feelings about the
CENTRAL bank. Please show the extent to which you believe CENTRAL bank has the
feature described in the statement. I request you to √ the option which in your opinion are
believed to be true.
1) What is your name?
…………….
2) What is your gender?
[ ] Male [ ] Female
3) What age group do you belong to?
[ ] 16-25 [ ] 26-35
[ ] 36-45 [ ] Above 45
4) What is the highest degree or level of education you have completed?
[ ] High school [ ] Graduate
[ ] Post graduate [ ] other
5) What is your occupation?
[ ] Student [ ] business
[ ] Private Job. [ ] Govt. Job
[ ] other
6) What is your yearly income?
[ ] < 2 Lakh [ ] 2.1 to 5 Lakh
[ ] 5.1 to 10 Lakh [ ] Above 10.1 Lakh
[ ] not applicable

51
7) Following are the factors that you might have considered while service quality in central bank of
India. Please rate the factors that you had considered on the scale below. Below number 1 is strongly
disagree, 2 is disagree, 3 is neutral, 4 is agree and 5 is strongly agree
QUESTIONS Strongly
Disagree
Disagree Neither
agree Nor
disagree
Agree Strongly
Agree
1.CENTRAL bank has modern looking
Equipment.
2. The bank's physical features are visually
appealing
3. The bank's reception desk employees are
Neat appearing.
4. Materials associated with the service (such
as pamphlets or statements) are visually
appealing at the bank.
5. When the bank promises to do something
by a certain time, it does so.
6. When you have a problem, the bank
shows a sincere interest in solving it.
7. The bank performs the service right the
first time.
8. The bank insists on error free records.
9. Employees in the bank tell you exactly
when the services will be performed.
10. Employees in the bank give you prompt
service.
11. Employees in the bank are always
willing to help you.
12. Employees in the bank are never too
busy to respond to your request.
13. The employees of the bank are
Trust worthy.
14. The behavior of employees in the bank

52
Instills confidence in you.
15. You feel safe in your transactions with
the bank.
16. Employees in the bank have the
knowledge to answer your questions.
17. The bank gives you individual attention.
18. The bank has operating hours convenient
to all its customers
19. The bank has your best interests at heart.
20. The employees of the bank understand
your specific needs.

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