Comparative Study of Customer Satisfaction in Indian Public Sector and Private Sector Banks
COMPARATIVE STUDY OF CUSTOMER SATISFACTION IN INDIAN
PUBLIC SECTOR AND PRIVATE SECTOR BANKS
1Puja Khatri & 2yukti Ahuja
1 School of Management Studies, Guru Gobind Singh Indraprastha University, Kashmere gate, Delhi, India
2*Jagan Institute of Management Studies, 3, Institutional area, sector – 5, Rohini, Delhi – 85, India
ABSTRACT
With the advent of liberalization policy and RBI’s easy norms several private and foreign banks have entered in Indian banking sector which has given birth to cut throat competition amongst banks for acquiring large customer base and market share. Banks have to deal with many customers and render various types of services to its customers and if the customers are not satisfied with the services provided by the banks then they will defect which will impact economy as a whole since banking system plays an important role in the economy of a country, also it is very costly and difficult to recover a dissatisfied customer. Since the competition has grown manifold in the recent times it has become a herculean task for organizations to build loyalty, the reason being that the customer of today is spoilt for choice. It has become imperative for both public and private sector banks to perform to the best of their abilities to retain their customers by catering to their explicit as well as implicit needs. Many a times it happens that the banks fail to satisfy their customer which can cause huge losses for banks and there the need of this study arises. The purpose of this study is to compare the public sector banks and private sector banks in terms of customer satisfaction and to study the various variables of service quality using servqual model. The work has been carried out with the objective of understanding the reasons of customer dissatisfaction and what are the opportunity areas wherein these banks need to focus and strengthen their Customer Relationship
Management practices. The research work uses both the sources of information, i.e.
PUBLIC SECTOR AND PRIVATE SECTOR BANKS
1Puja Khatri & 2yukti Ahuja
1 School of Management Studies, Guru Gobind Singh Indraprastha University, Kashmere gate, Delhi, India
2*Jagan Institute of Management Studies, 3, Institutional area, sector – 5, Rohini, Delhi – 85, India
ABSTRACT
With the advent of liberalization policy and RBI’s easy norms several private and foreign banks have entered in Indian banking sector which has given birth to cut throat competition amongst banks for acquiring large customer base and market share. Banks have to deal with many customers and render various types of services to its customers and if the customers are not satisfied with the services provided by the banks then they will defect which will impact economy as a whole since banking system plays an important role in the economy of a country, also it is very costly and difficult to recover a dissatisfied customer. Since the competition has grown manifold in the recent times it has become a herculean task for organizations to build loyalty, the reason being that the customer of today is spoilt for choice. It has become imperative for both public and private sector banks to perform to the best of their abilities to retain their customers by catering to their explicit as well as implicit needs. Many a times it happens that the banks fail to satisfy their customer which can cause huge losses for banks and there the need of this study arises. The purpose of this study is to compare the public sector banks and private sector banks in terms of customer satisfaction and to study the various variables of service quality using servqual model. The work has been carried out with the objective of understanding the reasons of customer dissatisfaction and what are the opportunity areas wherein these banks need to focus and strengthen their Customer Relationship
Management practices. The research work uses both the sources of information, i.e.