Customer Satisfaction:

A Study of Bank of Baroda Customers in International Branches

Shanti Ranjan Upadhyay
Assistant Professor
Dept. of Management
Institute of Computer Science & Technology
(SHEPA), VARANASI
E-mail ranjan.rishi1741@gmail.com
Mob: 9984198777, 9984777798

Abstract:
In recent years, the banking industry around the world has been undergoing a rapid
transformation. Today banking is regarded as a consumer-oriented services industry and
banks have started realizing that their business increasingly depends on the quality of the
consumer service provided and overall satisfaction of the customer. Branding has emerged as
a top management priority in the last decade due to the growing realization that brands are
one of the most valuable intangible assets that firms have. Driven in part by this intense
industry interest, academic researchers have explored a number of different brand-related
topics in recent years, generating scores of papers, articles, research reports, and books
Relationship marketing has become the most critical aspect to corporate banking success. In
addition, the deepening of information technology has facilitated better tracking and
fulfillment of commitments, multiple delivery channels for bank customers, and faster
resolution of issues. In India too, the wave of deregulation in the early 1990s has created
heightened competition and greater risks for banks and financial intermediaries. Today,
customers expect higher quality services from banks which, if fulfilled, could result in
significantly improved customer satisfaction, and potentially retention levels. This empirical
research study focuses on exploring the major factors that lead to customer satisfaction in
retail banking in India. It also leads to developing a conceptual framework of relationship
marketing practices in Indian banks by capturing the perspectives of consumers with respect
to their satisfaction with various services. Data from 300 survey respondents was collected
from the selected prominent retail banks in the international branches. The findings revealed
that customer satisfaction, a transaction-specific attribute, is dependent on nine different
factors. It is hoped that this research paper would help the bank management not only in
improving the overall level of customer satisfaction but also strengthening the bond between
the banks and their customers, thereby helping the banks to retain and/or expand their overall
customer base.
Keywords: Customer satisfaction; retail banking; services & its products.

Introduction:
Businesses need to attract and establish a customer market and would need to retain it
through satisfaction. That is the key to its business performance. In order to attain this goal, a
company should have a high satisfaction rate from its clients. The increasing competition,
whether for profit and nonprofit purposes, is forcing the business sectors to pay much and
more attention to satisfying customers Researches suggest that increased levels of customer
satisfaction and loyalty are frequently attributed or linked to positive outcomes for a firm.
Measurement of the rate of customer satisfaction is also a measurement of how products and
services supplied by a company meet or surpass customer expectation. It is seen as a key
performance indicator. This is due to the fact that one of the factors needed in order to attain
high competency and also high competitiveness is a high market share through an increased,
established and well-sustained customer or client population. Industries are beginning to
understand the concept that their customers, the ones who purchase their products and use
their services, are the primary drivers of their position on the profitability ladder. Satisfaction
is a multidimensional construct which has been conceptualized as a prerequisite for building
relationships and is generally described as the full meeting of ones expectations (Oliver,
1980), and is a feeling or attitude of a customer towards a product or service after it has been
used. Industries also recognize that the support of the customer requires a complex
infrastructure which should not only design, produce, and distribute a product or service
which can be used by the customer without fear of defect; it should also contain a mechanism
whereby the customer is effectively supported. Anderson and colleagues (19940, found out
that firms with higher reported satisfaction levels also show significantly higher returns. They
say that an annual 1% increase in customer satisfaction is worth an 11.4% improvement in
current return on investment. Companies then need to align their activities and efforts to
satisfy and retain Customers, agreeing on the importance of customers in driving
performance (Johnson et al., 2000). As markets shrink, companies are scrambling to boost
customer satisfaction and keep their current customers rather than devoting additional
resources to chase potential new customers. This is because it costs five to eight times as
much to get new customers than to hold on to old ones is key to understanding the drive
toward benchmarking and tracking customer satisfaction (Cacippo, 2000). Many experts have
begun to focus more directly on increasing customer satisfaction as an explicit goal.
Satisfying and keeping customers is simply less expensive than constantly replacing them.
They have recognized that quality and satisfaction are not enough to boost the profitability of
the business, thus they are moving beyond by focusing directly on customer loyalty as the
key. Because of this, companies are realigning their efforts and strategic plans towards
increasing customer satisfaction and establishing loyalty from the clients or the customers
who are purchasing or availing the services being provided by the company.

Research Methodology:
Research Objective

1. To assess the dimensions influencing Customer Satisfaction in the BOB at

international branches in India.
2. To assess the level of Customer Satisfaction in the BOB at international
branches in India.

Research Design
The Research design is exploratory as well as descriptive. The research is exploratory
till identification of variables and later becomes descriptive as is tested with suitable
statistical tools for objective findings.

Data Collection
This paper investigates Customer Satisfaction in BOB at international branches in India.
Through telephonic survey across all over India at international branches of Bank of Baroda.

Sampling:Universe

Customer of Bank of Baroda

Sampling Unit

Individual customer

Sample size

10(each branch)

Sampling

Convenience sampling

Scope of Study

The study is conducted in ICST (Shepa), Varanasi. 221011

Limitations of Study
1. Study is restricted to international branches only in India only, and international
branches are ltd. Branches in India hence the findings cannot be generalized.
2. Sample size is limited.
3. The study is done under the assumption that respondents are true and honest in

expressing their views.

Findings:

Serial No.

Items

Mean Score

A
1
2

Quality of service
Service delivery
Commitment towards

3.266
3.38
3.18

3
4
5
6
7
B
1
2
3
4
5
C
1
2
3
D
I.

Sincerity towards
Promptness in delivery
Approach regarding
Approach regarding
Speed of grievance
Employee behavior
Helpfulness of employees
Knowledge of the employees
Employee understanding
Courtesy of employees
Way yours non personal
Bank Atmospherics
Banks physical infrastructure
Employee appearance
Clarity of information provided
Record accuracy of the bank

3.44
3.26
3.44
3.22
2.94
3.86
3.62
4.58
3.65
3.92
3.56
3.573
3.14
3.64
3.94
4.62

Mean response of the cases on the parameter of Quality of service is 3.27 which
signify above average satisfaction of the customers Banks of Baroda at international
branches in India.

Quality of Service (3.266)

3.38

3.44

3.18

3.26

3.44

3.22
2.94

1. On deeper analysis of component of service delivery it is discovered that mean

response of the customers on variable of speed of grievance redressed is 2.94 which
signifies below average satisfaction of the customers in Banks of Baroda at
international branches in India.
2

Employees of Banks of Baroda at international branches in India are committed,

sincere and prompt. Mean satisfaction of customers on employee commitment is 3.18

signifying above average satisfaction. Further the mean response of the customers on
sincerity of employees is high i.e. 3.44.
3

Mean satisfaction of the customers on parameter of promptness is 3.26 which signify

above average satisfaction.

Mean satisfaction of the customers on parameter of Approach regarding queries is

3.44 promptness is 3.26 which signify above average satisfaction.

Mean satisfaction of the customers on parameter of Approach regarding grievances is

3.44 promptness is 3.26 which signify above average satisfaction.

II.

Mean response of the cases on the parameter of employee behavior is 3.867 which
signify high satisfaction of the customers of Banks of Baroda at international branches
in India.

Employee Behavior (3.867)

4.58
3.62

3.65

3.92

3.56

1. On detailed analysis of components of employee behavior it is found that

mean satisfaction of employees of Banks of Baroda at international branches
in India are helpfulness of employees is high.(3.62)
2. Mean satisfaction of the customers on the parameter of employee knowledge
is very high(4.58)
3. Mean satisfaction of the cases on parameter of understanding customer
specific needs is 3.653 which signify above average satisfaction of the
customers of Banks of Baroda at international branches in India.

4. Mean response of the cases on the parameter of courtesy is 3.92 which signify
nearly high satisfaction of the customers of Banks of Baroda at international
branches in India.
5. Mean response of the cases on the parameter of dealing with non personal
communication is 3.56 which shows above average satisfaction of the
customers of Banks of Baroda at international branches in India.
III.

Mean satisfaction of the cases for the record accuracy of the bank is 4.62 signifying
high satisfaction of the customers of Banks of Baroda at international branches in
India.

IV.

Mean response of the cases on the parameter of bank atmospherics is 3.573 which
signify the above average satisfaction of the customers.

Bank Atmospherics (3.573)

3.14

3.64

3.94

1. It is found that mean satisfaction on parameter of employee appearance is 3.64

which signify above average satisfaction of the customers of Banks of Baroda at international
branches in India.
2. Mean response on the parameter of physical infrastructure is 3.14 which signify
just average satisfaction of the customers of Banks of Baroda at international branches in
India.

Quality of service

3.27

Employee behavior

3.86

Bank atmosphere

3.57

Bank physical infrastructure

4.62

Total sum

15.32

Mean = Total/4 = 15.32/4= 3.83,

After evaluating difference parameters of satisfaction there MEAN comes out 3.83 but our satisfied
level is 4 and highly satisfied level is 5, so still below the threshold level or we can say still lack to
reach the satisfied level.

5
4
3
2
1
0

3.83

satisfactions Prameters
Suggestion:
1. Customers of Banks of Baroda at international branches in India are nearly satisfied as
regards quality of service delivered by the banks. They are satisfied on commitment,
sincerity, promptness and approach of employees regarding queries and grievances. But
satisfaction level is below average on speed of grievance redressed implying that there is
some lacunae in the in the banking system itself that prevents the employees from rendering
quick redressed of customer grievances.
2. Customers are highly satisfied with the behavior of employees Banks of Baroda at
international branches in India as regards their courtesy and understanding of specific needs.
Also they consider that employees are highly knowledgeable. But they do not find employees
helpful. This implies that problem persists in the system only as employees are trying to
render best to customers.
3. Customers of Banks of Baroda are highly satisfied with the employee appearance. But
most of the customers are dissatisfied with the physical infrastructure of the banks. This
implies that Banks of Baroda need to focus on betterment of their physical infrastructure.

Conclusion:
To conclude, it can be said that the research findings clearly reveal the goodwill and
reputation of the bank among the customer. But there is a need to strengthen the bank by

spreading awareness about the services offered by Standard Chartered bank through
advertisement and by expanding the branches of the bank all over the country and also by
tapping the potential customers through innovative means.

References:
1. http://www.business-standard.com/article/Finance/Bank-of-Baroda_1.html
2. http://www.exchange4media.com/news/story.aspx?Section_id=3 & News_id=16491
3. http://iims-markathon.blogspot.in/2010/09/strategic-analysis.html
And also from various website of bank of Baroda national and international branch .
4. Past record given by the ibob branch Varanasi.
5. Kothari. C.R,Research Methodology Methods and Technique Second Edition (2004), New Age
International (P) Ltd., Publishers Published by New Age International (P) Ltd., Publishers

6. Kumar. Ranjit, Research Methodology A Step by Step Guide for Beginners, Second edition, Dorling
Kindersley (India) Pvt Ltd., Licensees of Person Education in South Asia, Noida, Panchsheel Marg,
New Delhi, , India .
7. Gupta.S.L, and Gupta Hitesh, SPSS 17.0 For Researcher,(reprint 2013) International Book House
PVT. LTD,
8. www.googal.com
9. www.bob.com
10. Business today &Business India magazines