PERCEPTION OF CUSTOMERS TOWARDS CROSS-BUYING BANK

PRODUCTS

ABOUT THE BANK:

The Housing Development Finance Corporation (HDFC) is an Indian Scheduled bank which
is headquartered in Mumbai. It is India’s largest private sector in terms of assets. HDFC is also
listed by the Forbes among the top 100 banks in the world. HDFC is the only Indian bank to
take its place in this list.

HDFC was incorporated in the year 1994 by Mr.Aditya Puri who is now the Managing Director
of the company. In its 25 years journey the bank has 4,805 branches and 12,260 ATMs across
2,657 Cities and Towns in India. As far as cards is concerned the bank has distributed more
than 235 lakh Debit cards and 85.4 lakhs Credit cards to their customers.

HDFC bank provides a variety of bank products and services including wholesale banking,
retail banking, treasury, automobile loans, two wheeler loans, personal loans, loan against
property, consumer durable loan etc. It also offers Insurance like Life insurance, vehicle
Insurance, Fire Insurance etc.

HDFC was one of the pioneers in launching digital banking products to its customers. Payzapp
and SmartBuy digital applications are reliable, safe, secured and they are user friendly. In order
to go with the Bank’s “Go Digital” proposition the bank started a new wing called “Digital
Transformation and Mobility Banking “was formed in the year 2014. With the help of Net
banking facility the customers can avail personal loans within 10 seconds without any paper
work. Apart from this the MobileBanking app allows customer to perform over 90 different
types of transaction. HDFC bank is the first bank to launch a ‘HUMANOID” in the domestic
banking space in one of its branches.

HDFC bank merged with Times Bank making it the first merger between two private banks in
India. It further went to acquire Centurion Bank in the year 2008. They acquired Centurion
Bank for 94.1 Billion INR in one of the largest mergers in Indian Financial Sector.

HDFC Equity shares are listed both in the National Stock Exchange and in the Bombay Stock
Exchange. Its American Depository Shares are listed in the NYSE and Global Depository
receipt are listed in the Luxembourg Stock Exchange where two GDRs represent one equity
share of HDFC Bank.

AWARDS & RECOGNITIONS:

2015
2016

2017
2018
2019

American Indian Aditya Puri honoured for corporate and philanthropic leadership
Foundation
Express Computer Leadership Award for Outstanding Initiatives in Big Data /
BFSI Digital Analytics Artificial Intelligence Enterprise Applications
Innovation Awards
2019.
The Banker Bank of Bank of the Year - India
the Year Awards
2018
The Banker Global Best Private Bank in India
Private Banking
Awards 2018.
Mint - EY Emerging Winner - Robotic Process Automation (Software) category.
Technology Awards
Forbes' World's Best No. 1 Bank in India - HDFC Bank
Banks report
Euromoney Trade Best Service (Asian Banks only) - India
Finance Survey 2019 Market Leader (Asian Banks only) - India
The Financial Best Bank - New Private Sector category
Express India's Best
Banks Awards 2017-
18
FE CFO Awards Best CFO / Newsmaker of the Year
2019
Asiamoney Best Best Digital Bank (India)
Bank Awards 2019
AIMA-JRD Tata HDFC Bank MD Mr. Aditya Puri has been conferred the AIMA-
Corporate Leadership JRD Tata Corporate Leadership Award for the Year 2018
Award 2018
Outlook Money Best Private Sector Bank Award - Gold
Awards 2019
IDC Financial Asia's Most Secure Bank
Insights Innovation
Awards (FIIA) 2019
Dun & Bradstreet India's Leading Bank - Private Sector
BFSI Awards 2019
Euromoney Private No. 1 in Asset Management category
Banking and Wealth
 Management Survey
2019
Business Today - - Bank of the Year - HDFC Bank and SBI
KPMG India's Best Best Large Bank - HDFC Bank
Bank Awards 2019
FE Best Bank Awards Best Bank: New Private Sector

CSR INITIATIVES:
ZIIEI (Zero Investment Innovation for Education Initiative) is an action-oriented initiative
that aims to improve the education system at zero or minimal cost. With HDFC Bank
Parivartan as its principal sponsor, ZIIEI is the world’s largest people-driven grassroots
innovation movement.
Rupantar, a multi-dimensional programme under the initiative provides a platform for the
government, corporates, NGOs and teachers to come together for the sole purpose of
improving the quality of education in government schools. Uttar Pradesh is the first state to
implement this program. The program has successfully improved the quality of education in
government schools across 75 districts of the state and is currently being implemented in 11
other states and 1 union territory in the country. ZIIEI aspires to continue to transform the
education system in India for generations to come.

CROSS PRODUCTS:

HDFC offers as many as 53 products to its customers. Some of their products include CASA,
Demat Accounts, Fixed Deposit, Recurring Deposit, Loans, Insurance, Locker facility to
certain customers etc.

SAVINGS ACCOUNT:

According to a survey taken by Economic times in 2018, almost 80% of the population in India
has bank accounts. Majority of the customers will avail this product as this is the most common
product in any bank. Savings account are generally opened by the customers to save money
which are not intended for their regular expenses. The bank or any other financial institution
provides a minimal percent of interest rate for this account. The average monthly balance for
the savings account differs from bank to bank. The bank will charge some fees if the average
minimum balance is not maintained by the customer. The banks based on the level of customer,
limit the number of transactions and withdrawals each month. The main advantage of savings
account is that it is the safest and most beneficial way to keep your liquid investments with
regular rate of interest. A typical savings account kit will contain a pass book, Debit card and
a check book with minimum check leaves. Nowadays, banks activate the net-banking facility
once their account is open.

Savings account can be opened with nil IP. It is often linked with the customer’s PAN number
so that banks can avoid fraudulent activities. The initial payments are different for each bank.
HDFC requires a minimum of 11,000 rupees to open a savings account. The bank offers only
check mode of payment for the first time.

CURRENT ACCOUNT:

Current account is mainly classified into two types.

1. Individual Current Account

2. Company Current Account.

This type of accounts are popular among companies, firms, public enterprises and businessmen
because of their high number of transactions and withdrawals from the bank. Both nationalized
and private banks offer this product to their customers. Unlike the savings account, the current
account will not yield any interest to its customers because of frequent transactions and
withdrawals. There is no restriction in number of transactions that can be made by a customer.
Banks allow high volumes of money to be deposited at a particular time. The company or an
individual can claim a POS machine for their business use when they have a current account.
In order to encourage businesses banks give interest free inward remittances, deposits and
withdrawals to their current account holders. Apart from this banks have also enabled the multi-
location funds transfer facility to these customers.

The account holders can claim loan based on their transaction history and size of their book.
The loan amount depends on these factors. An option of Overdraft is applicable to the
current account holders. With the internet banking and mobile banking option customers are
enabled to transfer funds easily.

Individual current account is commonly used by Doctors, Lawyers and other sole proprietors.
Having a current account enables the customer to use POS machine for their regular income
from their customers. Based on this transaction in the POS machine, the account holders can
claim loan from the bank.

LOANS:

Loans are one of the main assets for all banks and other financial institutions. The interest paid
by the customers for their loans to the banks act as primary source of revenue for the banks. A
loan is given to an individual or a company to increase the overall money supply. HDFC offers
different types of loans according to the needs of the customer. HDFC is the leading provider
of personal loans in India. The loans given by HDFC can be customised by the customers
according to their requirements. The loan tenures, flexible interest rates and quick
reimbursements are some of the major advantages provided by HDFC to their customers. With
the help of digitalization HDFC bank now offers personal loans to their pre-approved
customers within 10 seconds with no application and documentation submission. The EMI for
a loan of 1lakh starts from just 2187 rupees per month.

HDFC Bank offers loans to its self-employed and salaried customers. The loan eligibility for
each individual differs based on the account balance of that individual. Net-banking facility
enables the customer to check for pre-approved loan. Individuals who earn more than 15,000rs
per month are eligible for applying loan.

The loans are differentiated based on the securities produced by the lender.

SECURED LOANS:

Loans which are backed by a collateral are known as secured loans. Housing loan, vehicle loans
and mortgages are few examples of secured loans. The collateral reduces the risk associated
with lending. If in case the borrower defaults the bank can jeopardise the customer’s collateral
to match the debt taken by them.

HDFC bank is one of the first banks to offer loans based on your Mutual Funds. This is done
in partnership with CAMS. The customer can pledge their Mutual Fund assets online and can
claim digital loan instantly from the bank. The loan amount will depend on the performance of
the Mutual funds in the market. HDFC also provides loans against shares. The customer has to
open a loan against securities account to enjoy this feature.
UNSECURED LOANS:

A loan which is issued and backed only by the borrower’s creditworthiness without any
collateral is referred as signature loans or personal loans or unsecured loans. The terms and
interest rate of these loans depends on the credit score of the customer. Since there is no
collateral to be pledged by the customer the risk involves in this type of loans are very high to
the banks or any financial institutions. In some cases the banks allows the borrower to provide
a Cosigner who will sign on behalf of the borrower. In such cases the cosigner’s assets will be
pledged for providing loans. He/she takes full obligation to fulfil the debt that the borrower has
borrowed.

Unsecured loans include credit cards, student loans and personal loans etc. A revolving loan is
a type of loan which has a credit limit that can be spent by the user after which they have to
repay the amount which will in turn allow them again to spend the amount. This process is
called revolving loan.

A term loan is where a borrower pays the interest in equal instalments until the loan is paid off
at the end of its term. These type of loans mostly come under secured loans but in some cases
it is provided as unsecured loans by the banks. According to a survey in 2018, the unsecure
loans has increased exponentially and will continue to do so. The credit card balance will jump
from 840 billion dollars to 996 billion dollars by end of this year. With increase of Non-banking
financial institutions the unsecure loans is there to increase in the market.

CREDIT CARDS:

Credit card is a debt instrument which can be used for financial transactions in place of cash,
cheques and debit cards. Based on the credit worthiness of the customer the credit limit is set
by the banks. The interest rates from credit cards are the main way of income to the credit card
companies. The rate of interest can range from Zero percent to Thirty percent based on the
creditworthiness of the customer. Generally credit cards are unsecured debts for the banks. It
is given purely on the basis of past credit history of the customer.
HDFC bank provides various types of credit cards based on the customers segment. Regalia
Card is predominantly used by customers whose income is more than 1 lakh 20 thousand per
month. The maximum credit limit for Regalia card owners is 3lakhs per month. The customers
can access 6 international lounges in a year and can get upto 30000 JP points in a year.

Customers whose monthly income is at least 15000 can avail the Classic money back card. The
credit limit is between 50thousand to 1.5 lakhs. One of the benefits of this card is that it gives
a discount on fuel surcharge up to 250rs and these customers can claim card with no cost in
case the customer losses the card.

OBJECTIVES OF THE RESEARCH:

PRIMARY OBJECTIVE:

To know the customer’s perception towards cross-buying bank products.

SECONDARY OBJECTIVE:

 To find the factors influencing the customers to remain with their existing bank.
 To know how HDFC Bank is doing their cross-selling to its customers.
 To understand the relationship between cross banking of customers and reputation of
the banks.

METHODOLOGY:

TYPE OF RESEARCH:

Descriptive Research: This is more structured and formal in nature. The objective of this study
is to provide a comprehensive and detailed explanation of the phenomena under study.

DATA COLLECTION:

Data for any research can be collected from primary and secondary data. Primary data is mainly
collected through questionnaire, observation and interviewing people. Previous research papers
and other related documents can be used as secondary data.

PRIMARY DATA:

To find the customers perception about cross banking it was necessary to share the
questionnaire to people having bank accounts from different banks. Quantitative and
qualitative data was collected through questionnaires. The questionnaire was shared with the
customers and other bank account holders to get information.

SECONDARY DATA:

HDFC website and HNW portal was analysed to get more information about the bank. Personal
interview with the Relationship Managers to collect data about the cross-selling activities at
HDFC bank. Similar research papers were analysed to get right results.

SAMPLE METHOD:

The self-selection or convenient method of sample collection was used to collect samples.
Questionnaire was shared to 130 account holders to understand their perception about cross-
buying products. Further to that 8 Relationship Managers were interviewed to find the
techniques of cross-selling in HDFC Bank. This sampling method was followed to get quick
response from the respondents as there was less time to complete the research process.

Since this is non-probability sampling the results found cannot be generalised to a whole
sample population. The perception might change from individual to individual.

LIMITATIONS:

Since the questionnaire was shared with customers visiting bank, friends and relatives the
results obtained might be biased. The results cannot be validated as there was less time to
complete the research. The answers given by the Relationship Managers from HDFC Bank is
not validated.

CHAPTER - 3

LITERATURE REVIEW:

The main objective of this research is to find the perception of customers buying cross products
from their existing and other new banks. Secondary objective is to find the factors involved in
customer retention to their main banks.

https://airccse.com/ectij/papers/1115ectij03.pdf

In order to know the perception of customers about cross buying we need to identify the various
factors that makes them to opt for cross buying. Nidhi Grover Arora analyzed in her paper the
various drivers for cross buying by customers of public and private sector banks of India. For
the purpose of study primary data consisting of 551 bank customers of 20 major commercial
banks was used. The study shortlisted 8 major factors as responsible for customers to opt for
cross buying. The 8 factors shortlisted in the study are locational convenience, Trust, Bank’s
reputation, Time consciousness, product knowledge, switching cost, product quality and value
and overall satisfaction. An empirical analysis was performed to find the reliability of these
factors using the Cronbach alpha reliability test statistics. From the study it was found that
location, reputation, time consciousness, product knowledge and quality had positively and
significantly impacted the cross-buying intentions of costumers. Also, it product quality and
value was found to be the most influential factor in customers cross buying decision.

http://www.isca.in/IJMS/Archive/v6/i8/6.ISCA-RJMS-2017-072.pdf

The degree to which customer satisfaction influences the cross buying behavior of customers
was studied in depth by Minal shah, Sanjay Guha and Urvashi Shrivatsava (2017). This paper
explains cross selling on basis of 2 viewpoints : Customer viewpoint and employee viewpoint.
The study concludes employees being the point of contact between the bank and customers
must be able to list out the benefit of the products in accordance with the needs of customers.
Customers seek some added benefits when they go in for purchase of new products. When the
benefits are more, customer satisfactory level increases and which in turn influences their
Cross-buying decisions.

https://www.arcjournals.org/pdfs/ijmsr/v3-i2/2.pdf

Dong-Fei XUE explains the influence of perceived risk and perceived benefits on customer
satisfaction for buying bank products in his research paper. A step by step process wherein the
first step involves fining the relationship between perceived risk and perceived benefits on
perceived value .Then the relationship between perceived value and customer satisfaction is
studied. The research findings show that perceived risks have direct impact on customer
satisfaction.

https://www.scribd.com/doc/18544537/A-Study-on-Customer-Perception-in-Banking-
Industry-Using-Gap-Analysis

The general perception of customers on banking industry is explained by Dr Hema

Balakrishnan in her research paper using gap analysis. The research was performed on 21
aspects that influenced customer buying behaviour out of which 14 aspects were found to have
a greater impact than the others on customer’s decision. It was found that easy access, customer
friendliness and security were the major factors customers consider before opting for a
particular bank.

Pilot Questionnaire:
CHAPTER 4 – RESEARCH FINDINGS AND INTERPRETATION

4.1 INTRODUCTION:

The primary data questionnaire was created using Google Document and the link was
forwarded to the respondents. Total of 20 questions were asked to them to know their
demographic details, their perception towards cross-buying bank products and the factors
involved in customer retention in their main bank.

Few questions were asked to the Relationship Managers in HDFC Bank to collect information
about the cross-selling techniques of different banking products to their customers.
MODELS:

REPUTAT
ION

CROSS-
BUYING

PRODUCT CONVIEN
QUALITY IENCE

REPUTAT
ION

CUSTOMER
RETENTION

LOCATIO
SERVICE NAL
QUALITY ADVANTA
GE
4.2 DEMOGRAPHIC DETAILS:

The Pie-chart shows that the respondents were mostly men contributing over 60 percent of the
results. This also shows that the number of males visiting the banks is generally more than the
number of females visiting the bank.

Majority of the respondents belonged to the 20-28 age group. Apart from that there is an equal
split in the respondent’s age.
The respondents were mostly well educated with an Under Graduate degree or a Post Graduate
degree to their name. Very few people stopped with secondary and higher education.

As we see, the family income of the respondents were more than 10 lakhs for almost 36 percent
of the people and only a count full of people had an income of less than one lakh. This shows
that the yearly income plays a role in account holding capability of the customers.
Majority of the respondents were students and employed. Retired respondents were frequent
customers visiting the branch.

This was a important question from the research point of view. Around 45% of the respondents
had 2 different bank accounts for their use. Many people had 3 or more accounts for their use.
This shows that the respondents were open to cross-buying products from different banks. 23%
of the respondents maintained relationship with a single account for their business or personal
use.
Almost all the respondents had a savings or current account with a bank. This can be traced
back to the population in India where around 80% of the population hold a savings account on
their name. Credit Cards are the second most preferred product from a bank with more than
45% account holders buying it. Respondents also preferred loans according to their needs.
People also preferred insurance from banks as it is more trust worthy and gives better benefits
than third party insurance companies. Locker facility is mainly used by customers who wants
to keep their gold accessories. Banks try to sell the products which will generate high profits
for them.
Most of the respondents had a relationship with a bank for four or more years. Another 31% of
the people had an account between 1 and 3 years.

4.3 PERCEPTION OF CUSTOMERS CROSS-BUYING BEHAVIOUR

As the graph clearly shows, customers consider the quality of the product before buying it from
their main banks. 42.9% of the people strongly agreed to the part that they consider the benefits
of the product promoted to them by the banks before buying it from them. Another 39% of the
people agreed that they will check the product’s benefit before buying it from the banks. 6.8%
of the people felt that their relationship with their Relationship Managers are so good that the
RM’s will promote only useful products to them. This graph overall shows that customers
accept new offers from the banks based on the quality of the product and not by the reputation
or any other factors of the banks.

More than 50% of the respondents felt that getting different products from different banks gives
them an edge to get the best offers from the banks. The customers depend on more than one
bank for getting best rates on their products.
With no surprise, almost all of the respondents were annoyed by the fact that their existing
bank call their customers to promote their products. This makes the customers move from their
existing customer to get new products from different banks.
As shown in the bar graph, 70 percent of the customers agreed that they consider the bank’s
reputation that drives the customers for cross-buying products from different or same banks.
Very few people disagreed to this factor.

Customers agreed that their main bank offers their other products to its customers at a better
rate in order to improve their sales of a particular product.
The graph shows that more than 45% of the respondents felt that opting more products from
the same bank will make their job easy. They also felt that this will reduce the transactional
charges to a greater extent. The customers consider the convenience factor as this eases their
banking process.

4.4 CUSTOMER RETENTION:

As shown in the figure, banks generally sell their products face to face to their customers. This
includes the customers who visit the bank and purchase their product. Many private banks
provide an option where the relationship managers visit the customer in person and pitch or
activate the product. This is the most trusted way of offering a product. With the digitalisation
taking its place in the banking sector, people also preferred information about products through
E-Mails.
When the respondents were asked how they would accept a new offer, close to 70% of them
said they will accept when it is sold through face to face interaction. This shows that a trust is
created when the bank employee approaches the customers to sell their products.

The graph shows that the bank’s image and reputation is one of the major factors contributing
to the customer retention in their respective banks. More than 86% of the respondents have
agreed that the interest to continue with the bank increases with the reputation and image of
the bank. This is similar to the results of other research where reputation and image had an
impact on customer retention.

The answer to this question was almost equally distributed. However around 32% of the people
said that the easy access to the bank in terms of location made them to maintain an account
with the bank. This could be because of the age of the customer and unawareness about the
digitalisation platform. Around 25% of the people had neutral answer about this. That means
they don’t feel any advantage or disadvantage with the location of the bank. On the whole the
location has an positive impact on the retention of customers in the banks.
Another important factor for customer retention is the service quality provided by the banks to
their customers. Close to 52% of the respondents strongly agreed that this factor created interest
to continue with the same bank. People with more than one bank account felt that this factor is
important for any bank to retain their customers.

4.5 CROSS SELLING BY HDFC BANK:

HDFC offers more than 60 different products to their customers. A stringent target is given to
the Relationship Managers based on the experience of the individual. Each Relationship
Manager has a portfolio based on the experience of the manager. Products are pitched to these
customers for their usage.

Few questions were asked to the Relationship Managers in the HDFC Bank Mylapore Branch
on how they go about Cross-Selling their products to their customers.

1. How are the customers segmented in HDFC Bank?

Based on the account balance maintained and the income an individual get the customers are
segmented into 3 categories

 Classic
  Premium
 Imperia

2. How do you build relationship with your customers?

Since HDFC has a plan of KYC, it is necessary for the RM’s to meet all their customers at least
once in a quarter. They also maintain their relationship with the customers by interacting with
them over phone and sending greetings on special days like birthdays to the customers.

3. How do you decide on the products to be pitched to the customer?

HDFC Bank has unique employee portal called the HNW Portal. This portal contains all the
information about the customer for the RM’s to access. The portal itself shows what are all the
products purchased by an individual customer and what other products can be pitched to them
based on the balance maintained by the individual.

4. Do you consider the need of the customer before selling?

All the RM’s said that they consider the customers need before pitching for cross-selling. This
shows that the relationship between the customer and the Manager is strong and the RM’s sell
only the products which the customers want.

CHAPTER 5: SPSS RESULTS

5.1 NORMALITY TEST:

This test is done to check if the data in the research is normally distributed. The two hypothesis
for this test is Ho: the data is normally distributed and the alternate is data is not normally
distributed.

The Skewness value must be between -1 to +1 for a particular data to be normally distributed.
 Buying
I consider the
Quality of service products The reputation Location of the My bank's Image
quality of a
from the bank from of a bank drives bank made me and reputation
bank product
creates interest to different me to buy more get more creates interest
before buying
continue with the banks gives products from products from to continue with
it from my
same bank me better the bank the bank. the bank
bank
deals
Mean 4.34 4.19 3.47 4.14 3.8 3.94
95%
Confidence
4.19 4 3.26 4.05 3.64 3.83
Interval for
Mean
5% Trimmed
4.49 1.264 3.67 4 4 4
Mean
Median 4.45 1.124 3.52 1.189 1.693 1.267
Variance 5 1 4 1.091 1.301 1.126
Std. Deviation 0.75 5 1.451 1 1 1
Minimum 0.866 4 1.204 5 5 5
Maximum 1 1 1 4 4 4
Range 5 1 5 2 2 2
Interquartile
4 1.611 4 4 -0.545 0.263
Range
SKEWNESS -1.741 -1.455 -0.401 -0.977 -0.743 -0.835
Kurtosis 3.814 4.07 -0.68 3.57 4.27 0.263

The skewness level is between -1 and +1 indicating that the data is normally distributed.

5.2 RELIABILITY TEST:

This test is done to prove that the data collected is reliable for research. Cronbach's alpha is
the primarily used to find the internal consistency of the data obtained. It is commonly used
when there are Likert scale questions in the questionnaire. This shows whether the data in the
scale is reliable or not.

When the value of Cronbach’s Alpha is less than 0.7 the given data set is said to be reliable.
 Cronbach's Alpha
Cronbach's Based on No. of
Alpha Standardized Items
Items
0.604 0.625 9

The cronbach’s Alpha value is lesser than 0.7 showing us that data set presented is reliable. All
the likert scale type of questions were tested for reliability.

5.3 CROSS TABS:

CHI-SQUARE:

Chi square test is done to find the relationship between two independent variables. The
variables identified are two different categorical variables.

Ho: When p value is more than 0.05. Variable 1 is independent of Variable 2

Ha : When p value is less than 0.05. Variable 1 is dependent on Variable 2.

The first comparison of variables from the data is

Respondents Age VS Location of the bank:

Asymp.
Value df Sig. (2-
sided)
Pearson
49.939a 20 .000
Chi-Square
Likelihood
53.868 20 0
Ratio
Linear-by-
Linear 5.976 1 0.015
Association
 N of Valid
131
Cases

The results show that there is dependency between the customer’s age and the location presence
of the bank.

Since the value of Pearson Chi-Square is less than 0.05 it shows that there is a dependency
between the two variables.

P value less than 0.05, reject Ho.

Therefore, the age of the respondents and the fact that the location of the bank made the
customers buy more from the same bank has a relationship and dependent on each other.

How did the banks offer their products vs How customers want the products to be sold

Chi-Square Tests
Asymp. Sig.
Value df
(2-sided)

Pearson Chi-Square 68.859a 16 .000

Likelihood Ratio 35.706 16 0.003

Linear-by-Linear Association 22.032 1 0

N of Valid Cases 131

a. 19 cells (76.0%) have expected count less than 5. The minimum expected count is .03.

Since the p value is lesser than 0.05 we reject Ho.

This shows that there is a dependency between the two variables. How customers prefer the
products to be sold is related to how in general banks sell their products.
5.4 ANOVA:

ANOVA test is done to find whether the means of two different variables are significantly
different from each other. It checks the impact of the variables by comparing the means of the
variables respectively. The variables compared are independent variables.

LOCATION OF THE BANK MADE ME GET MORE PRODUCTS

Sum of df Mean F Sig.

Squares Square
Between
28.711 4 7.178 4.726 .001
Groups
Within Groups 191.350 126 1.519
Total 220.061 130

The table shows that the significance value is less than 0.05. This shows that the means are
significantly different between groups and within groups. It gives us that the means are not
same among different variables.

BUYING PRODUCTS FROM DIFFERENT BANKS GIVES ME BETTER DEALS

Sum of df Mean F Sig.

Squares Square
Between
3.838 5 .768 1.024 .006
Groups
Within Groups 93.703 125 .750
Total 97.542 130

The table shows that the significance value is less than 0.05. This shows that the means are
significantly different between groups and within groups. It gives us that the means are not
same among different variables. This variable was compared with the number of years an
individual had an account with their main bank.
5.5 CORRELATION:

Bivariate correlation is done to find the strength of relation between same pairs of variables
in a population. The Pearson Correlation shows us if there is any statistical linear relationship
between same pairs of variables in the population.
The table below shows that there is a correlation between the Reputation of the Bank and the
customer’s choice of opting more products from the same bank for the ease of transaction.
 Frequent
My main bank
Opting for calls from
How did the I will accept a The reputation offers good Will yo
multiple the existing
bank offer new offer of a bank drives deals to their your main
products bank to
their from the bank me to buy more existing banks of
from the promote
products to if it is sold products from customers to
same bank is their d
you? through the bank take other
easy products
products
annoys me

Pearson
1 .412** -.199* -0.101 -.200* -0.076
Correlation
How did the bank
offer their
products to you? Sig. (2-
0 0.023 0.251 0.022 0.391
tailed)
N 131 131 131 131 131 131

Pearson
.412** 1 -0.17 0.022 -0.067 -0.011
I will accept a Correlation
new offer from
the bank if it is Sig. (2-
sold through 0 0.052 0.802 0.449 0.9
tailed)
N 131 131 131 131 131 131

Pearson
The reputation -.199* -0.17 1 .371** .522** 0.08
Correlation
of a bank drives
me to buy more
products from
the bank Sig. (2-
0.023 0.052 0 0 0.361
tailed)
N 131 131 131 131 131 131

Pearson
My main bank -0.101 0.022 .371** 1 .272** -0.111
Correlation
offers good deals
to their existing
customers to take
other products
Sig. (2-
0.251 0.802 0 0.002 0.205
tailed)
N 131 131 131 131 131 131

Pearson
-.200* -0.067 .522** .272** 1 0.068
Opting for Correlation
multiple products
from the same Sig. (2-
bank is easy 0.022 0.449 0 0.002 0.442
tailed)
N 131 131 131 131 131 131

Frequent calls Pearson

from the existing -0.076 -0.011 0.08 -0.111 0.068 1
Correlation
bank to promote
their products
annoys me
Sig. (2-
0.391 0.9 0.361 0.205 0.442
tailed)
 N 131 131 131 131 131 131

Pearson
Will you move .203* -0.041 -0.1 -0.053 -.224** -0.125
Correlation
from your main
bank if other
banks offer you
better deals? Sig. (2-
0.02 0.642 0.254 0.547 0.01 0.155
tailed)
N 131 131 131 131 131 131
CHAPTER 6 – CONCLUSIONS AND LIMITATIONS:

6.1 CONCLUSION:

The research identified various factors to analyse the perception of customers toward Cross-
Buying and to find what customer’s consider important for retaining in the same bank. The
research also analysed HDFC Bank’s techniques towards Cross-Selling products to their
customers.

PRIMARY OBJECTIVE:

TO UNDERSTAND THE PERCEPTION OF CUSTOMERS TOWARDS CROSS-

BUYING BANKING PRODUCTS.

In order to understand the perception of customers in the Chennai locality towards cross-
buying products, the factors which influence are the Bank’s Reputation and Image, Quality of
the project, Convenience of the individual were assessed. Out of these factors the quality of
the product and the reputation of the bank has a positive impact on the perception of the
customers towards cross-buying products. Most of the respondents trusted their main bank
for buying their products thus showing the trust factor and satisfaction.

The ease of opting more products from the same bank led the respondents to get more
products from the same bank. We can relate this with the fact that most of the respondents
stayed with their main bank for four or more years.

SECONDARY OBJECTIVE:

TO FIND THE FACTORS INFLUENCING THE CUSTOMERS TO REMAIN WITH

THEIR EXISTING BANK.

The influence of reputation of the bank, locational convenience, quality of the service and other
factors were analysed to find the retention of customers in their banks. All these factors had a
positive impact on the customer retention. The majority of the respondents were influenced by
the Reputation of the banks and the location convenience factors. Respondents also considered
the factor of quality of service for maintaining a healthy relationship with the banks. Customers
at HDFC Bank have a good relationship with the relationship managers thus helping the bank
to retain their customers.

TO KNOW HOW HDFC BANK IS DOING THEIR CROSS-SELLING TO ITS

CUSTOMERS.

HDFC Bank has unique employee portal called the HNW Portal. This portal contains all the
information about the customer for the RM’s to access. The portal itself shows what are all the
products purchased by an individual customer and what other products can be pitched to them
based on the balance maintained by the individual. Since HDFC has a plan of KYC, it is
necessary for the RM’s to meet all their customers at least once in a quarter. They also maintain
their relationship with the customers by interacting with them over phone and sending greetings
on special days like birthdays to the customers.

6.2 LIMITATIONS OF THE RESEARCH:

 The number of respondents in this research is not adequate and the findings cannot be
traced back to the population.
 Since most of the respondents were customers visiting the branch, we cannot assume
that their response were true to their conscious
 .Preliminary was not done due to lack of time for the research.
 Since the sampling method used is convenient the response might be biased.
 The response given by the Relationship Managers at HDFC may not be true.