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Chapter VII

FINDINGS, SUGGESTIONS AND CONCLUSION

In the research work entitled “A study on marketing of e-banking products

with reference to credit card in Thanjavur, Tamilnadu,” the socio demographic
characteristics of the cardholders and their awareness, satisfaction, problems
perceived by them and shifting option have been analysed. In this chapter, the
findings, suggestions and conclusion are given as follows:

FINDINGS
The analysis of the data collected from the respondents reveals the following
summary of facts and findings:

The analysis reveals that the majority of the respondents (80.05%) are male, the
reason for the low proportion of female cardholders is due to the lack of
awareness among them.

It is found that the majority of the respondents (36.38%) using card come under
the age group 31-40 years. Further, it indicates that the post-graduates are the
largest (40.14%) among 426 sample cardholders.

The occupational status of the cardholders reveals that the majority (62.68%) of
the respondents were salaried class.

The residential area-wise classification of the respondents show that majority
(83.33%) of them belong to urban. Further, it indicates that the majority of the
respondents (30.75%) who earn less than Rs.15,000/= as monthly income.

It reveals that the majority (75.82%) of the respondents were got married and
remaining 24.18 per cent unmarried.

The most of the respondents (96.71%) prefer electronic banking products for
their banking transactions. Further it is found that it is found that the majority
(40.29%) of the respondents prefer e-banking products because of convenience.
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The purpose of choosing card reveals that the majority of the cardholders select
card for the convenience purchase, followed by interest free credit facility (20-50
days), no risk of carrying cash and convenient for the options of the payment
given by the banks.

It is found that 49.53 per cent of the respondents are influenced by the sales
executive of the study bank for the selection of card.

It is found that the majority of the respondents used their cards for cash
withdrawals (27.63%), followed by the purchase of cloth (22.54%), and rest of
the respondents regards to filling up petrol and diesel, purchase of provision,
travel assistance and other purposes.

Out of the total of 426 respondents, 67.84 per cent are single cardholders and the
remaining 32.16 per cent are multiple banks’ cardholders (that is possessed more
than one bank card). Further, it implies that the card business was not so popular
in the study area.

Among the three categories of cardholders, the majority of the respondents are
possessed SBI and ICICI cards.

It is evident that out of total 564 card possessed by 426 respondents, the majority
of the cardholders are franchised by VISA Card (73.24%) International.

It reveals that the majority (51.17%) of respondents spent less than 20 per cent of
their monthly expenditure through the card. Further, it indicates that the
cardholders prefer cash as a right mode of payment than using card.

It reveals that a majority of the respondents (65.96%) have possessed the card for
the duration of three years.

It is found that there is an association existing in higher income group of the
respondents, multiple cardholders, ICICI and ‘Other Bank’ cardholders spent
more percentage of their monthly expenditure through the card. Further, it
indicates that SBI cardholders are not influence to spend more on their card.

There is an association of higher income group and higher age group of the
respondents possessed their card for longer period than others. Further, it reveals
that the majority of the respondents’ in banks possessing of their card up to three
year and it is shown decreasing every year due to lack of found management and
surrender their card for the poor performance of the card issuers.
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It is found that the awareness of the cardholders in banks is average (49.77%).

Further, it indicates that the majority of the respondents’ overall satisfaction
among the banks is also an average (48.60%).

The analysis reveals that the SBI, ICICI and ‘Other Bank’ cardholders’ degree of
awareness and satisfaction is only an average. Further, it is clear that level of
awareness is average and increases simultaneously over the satisfaction of the
awareness level seems to be more satisfied than the various banks which issue
cards.

It is evident that the multiple cardholders’ are more satisfied than single
cardholders. It also indicates that the single cardholders are not satisfied more
than multiple card users.

It reveals that there is a significant difference between male and female
respondents with respect to various dimensions of card services’ for satisfaction
of the banks. Further, it is identified that the female respondents are more
satisfied than male.

With respect to various dimensions of card services’ for overall satisfaction in
banks reveals that there is a significant difference between age group and
satisfaction in the ICICI cardholders and there is also no significant difference in
SBI and ‘Other bank’ cardholders which means that there is no sustained
influence of the age of the respondents to the utmost satisfaction.

A test was conducted to find out that there is a significant difference between
mean ranks towards satisfaction of cardholders in various dimensions of the
banks which issued cards. Further, it indicates that the highest ranked satisfaction
was the merchant establishment service in ICICI and ‘Other bank’ cardholders,
and convenience services of SBI cardholders. Further, it is found that the least
significant for ranking of cardholders’ satisfaction on insurance and global
services.

It reveals that there is a highly significant difference between mean ranks
towards satisfaction among the series of cardholders in various banks. Further, it
is found that the cardholders’ top order preference of convenience, accessibility,
wider acceptability and effectiveness of handling problems quickly for better
level of satisfaction in banks.
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With regards to satisfaction rating order of cardholders in various banks is found

that convenience in use, popularity, effectiveness of handling problems and
quality of service in SBI cardholders, Accessibility, Simplicity, Popularity and
Quality of service in ICICI cardholders and handling problems effectively in
‘Other bank’ cardholders is significant to improve further satisfaction of the
study period.

It is found that there is a high relationship existing between various dimensions
of cardholders’ services for the satisfaction in various card issuing banks for the
study.

With regards to problems perceived by the respondents in various card issuing
banks shows that majority (56.81%) of the respondents are interested to make
complaints on the problems faced by them to banks and the remaining 43.19 per
cent were not able to make complaints.

It is found that the majority (50.54%) of the respondents was unable to make
complaints due to busy with their works followed by 19.57 per cent felt that their
previous efforts have failed and 19.02 per cent of them felt that the problems of
customer helpline care centre always busy in banks.

An analysis was made to find out the methods of complaining by the respondents
revealing that the majority (79.75%) of their complaints made through customer
helpline care centre.

On analyzing the number of times the complaints were made by the respondents
to banks, it is evident that the majority (48.35%) of the respondents approach less
than and equal to three times.

An analysis in solving the problems of cardholders by the banks reveals that
71.90 per cent of problems were solved by the banks and the remaining 28.10 per
cent of problems were not solved properly.

With regard to the duration of time taken for the banks to solve the problems of
cardholders, it is found that the majority (63.79%) of the problems were solved
within a week.

With regards to overall level of problems perceived by the respondents, the
analysis reveals that 50.94 per cent of them were faced the average problems.
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The analysis was conducted to find out the overall satisfaction of the cardholders
problems handled or being handled in various card issuing banks. It was found
that the majority (48.60%) of the respondents were satisfied. Further, it is evident
that the satisfaction of cardholders’ problems are handled or being handled by the
issuers on an average and above.

It is found that there was a significant difference between male and female
respondents to various dimensions of card problems in banks. Further, it
indicates that the male users are facing more problems than the female in banks.

There is a highly significant difference existing between age group with respect
to various dimensions of problems. Further, it is evident that older age group has
lesser problems than younger age group of the cardholders.

It is known from the test conducted that the problems are high and levels of
cardholders’ satisfaction low in SBI, ICICI and in ‘Other bank’ cardholders. It is
evident that problems are more and the level of satisfaction of cardholders is less
in various card issuing banks during the study period.

It reveals that there is a significant difference between mean ranks towards
various dimensions of problems of cardholders in issuing banks. It is found that
the cardholders have ranked on the highest problems related to bank charges,
followed by problems relating to bill payments, bank transaction, merchant
establishment, frauds in making use and ATMs services.

With regards to satisfaction level of handling or being handled in various
dimensions of cardholders problems in banks. The dimension of problems of
bank charges and bank transaction is highly significant for increasing satisfaction
level of cardholders. Further, it indicates that the cardholders’ problems increase,
the level of satisfaction will be decreased in banks.

It is evident that there is a high relationship between various dimensions of
cardholders’ problems in various banks.

It is found that the majority of the respondents possess single card which has
been got card in the financial year 2005-06 and it showed decreasing trend year-
by-year due to lack of popularity in the credibility of the card.

An analysis to find out the respondents willingness to choose card reveals that
the majority (88.73%) of the cardholders were solicited.
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It is found that the majority (84.51%) of the respondents were not interested in
shifting from their existing cards. Further, it indicates that 15.49 per cent of
cardholders have shifted from the existing bank’s card during the study period.

It is found that the majority (40.61%) of the respondents are satisfied with the
existing cards. Therefore, they are not shifting from one card to another. Further,
it indicates that they expect the mode of behavioural change in the issue of card
by the various banks. As the role of competitors into questions, most of the
respondents surrendered their card and the remaining cardholders are waiting to
surrender their card in the appropriate time.

With regards to bank wise shifting of card during the five years of the study
period, reveals that majority of them are SBI cardholders.

On examining the respondents’ further shifting option from the present bank card
to any other banks’ card in future, it reveals that 22.54 per cent want an option to
shift and 77.46 per cent do not want to shift from their existing card.

An analysis with regards to bank’s preference for the shifting options in future
reveals that the majority of the cardholders prefer neither ICICI Bank card nor
‘Other Bank’ card.

A test was conducted to find out the association exists between unsolicited
cardholders and dissatisfaction in banks. It reveals that unsolicited cardholders
are highly dissatisfied than solicited.

It is found that there is an association between dissatisfaction of the cardholders
and shifting from existing card to any other banks’ card during the five years of
the study period. Further, it indicates that the highly dissatisfied cardholders’
prefer frequent shifting to any ‘other bank’ card.

There is no association between the age group, qualification, occupation, area,
monthly income and options to shift in future to any other banks card. But the
majority of multiple, unmarried and male cardholders of the respondents have
more options to shift from the existing cards in future.
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SUGGESTIONS
The following are the important suggestions made by the researcher to
resolve the various problems of card issuing banks and for the growth of card sales,
satisfaction of the cardholders and correct tuning of their future marketing strategy to
improve better performance.

 The card issuers should take necessary steps to improve the awareness among
female cardholders, higher age group, graduates and professionals, businessmen,
rural respondents, higher income group and unmarried cardholders for their
business growth in the area of study.
 It is suggested that the bankers may be consider to issue more e-banking product
of their respondents which was preferred for their convenience in banking.
 The majority of the cardholders purpose of choosing the card for purchase
convenience and interest free on credit facility available. It is suggested that the
issuers should encourage the merchant establishments for wider acceptability of
card for purchase convenience and growth of sales and satisfaction of
cardholders.
 It is suggested that the card divisions should utilize their own sales executive
and respondents’ friends and relatives for the further growth of card sales.
 The majority of the cardholders utilize their card for cash withdrawal, purchase
of cloth, filling up petrol and diesel and provision of purchases. It is suggested
that the issuers should give some additional facility such as free of their ATM
charge for cash withdrawals, cash back offer and discount of retail purchase
made by cardholders for improving further sales and satisfaction of their
cardholders.
 The majority of the respondents use single bank card, there is no much
competition of the card market. It is suggested that the issuing banks divisions
should take necessary steps to popularize their card business through effective
advertisement campaign and sales promotional measures for the growth of card
sales.
 It is suggested that the ‘other bank’ card division should take steps to improve
their card market share which are lesser proportion in the market.
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 The majority of cardholder preferred money as a right mode of payment than

using card. It is suggested that the card division should adopt right marketing
strategy such as reduce charges and popularize through effective sale promotion
(like gift, free offer) and acceptability of card with incentives offered by the
merchant establishments to attract and promote their cardholders usage.
 It is suggested that to encourage their existing cardholders for possession of card
for long duration, as it attracts new customer higher than the existing one.
 The majority of higher income group, multiple and ICICI and other bank users
spent more percentage of their monthly expenditure through card. It is
suggested that the issuers should create awareness among other income group,
and single card users for promoting their sales.
 It is suggested that SBI card division should take necessary steps to improve
their cardholders’ usage.
 The majority of higher income groups, old age groups were possession of card
more period than others. It is suggested that card division should adopt right
retaining strategy like incentives and attractive offers to hold other users for
more periods for growth of card sales.
 The level of awareness and satisfaction of the cardholders in banks is an
average. There is an association between two perceptional factors. The
cardholders whose awareness level were more seemed to be more satisfied than
the respondents whose awareness level were less in various card issuing banks.
It is suggested that card division should take appropriate marketing strategy such
as cardholders problems and services awareness camp for their customer
friendly approach, personal attention through the good customer relationship
management, communicate regularly to update for knowledge and awareness of
the cardholders on the recent changes in the terms and conditions of card issuers
in the form of newsletters and circulars to improve more product awareness for
higher satisfaction and the growth of card sales.
 It is suggested that card division of the banks should take necessary steps to
increase their single cardholders, male respondents, higher age group of
cardholders’ for the better sales and satisfaction.
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 The majority of the respondents were satisfied with merchant establishment and
convenient services. It is suggested that to improve other dimensions of services
also for higher level of satisfaction and sales growth.
 To improve more satisfaction and sales growth of their card business, the banks
should adopt appropriate marketing strategy like encourage the business
establishment in the area for wider acceptability of card for the convenience of
the purchase.
 With regards to improve further satisfaction of the respondents and growth of
sales to increases their cardholders convenience in use, easy accessibility,
popularity, effectiveness of handling problems and quality of services in banks.
 Marketing of card in the potential Indian market has proved to be beneficial to
the issuers. The issuers through their various marketing strategies try to
influence more people to buy card and also make the existing cardholders to use
more of their cards. To promote usage of card among the cardholders, issuers
have started to extend the various services to the cardholders offering attractive
incentives and also globalize these services.
 The problems perceived by the respondents are average and some of the
cardholders were not able to make complaint due to busy with their work and
customer helpline always very busy. Further, the cardholders are required to
solve the problem in a week. It is suggested that the card division should take
necessary steps to solve these problems quickly for better sales and satisfaction
of cardholders.
 The lower level of problem awareness of cardholders are facing problems are
high in banks. It is suggested that the card issuers should improve the awareness
of problems in usage among the respondents through problems awareness camp
and cardholders grievances meeting for the growth of sales and satisfaction of
cardholders.
 It is suggested that the card issuers should take steps to minimize the prominent
dimension of problems of bank charges, bill payments and bank transactions to
improve their cardholders’ satisfaction.
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 It is suggested that the issuers should take necessary steps to handling or being
handled the problems dimensions of bank charges and bank transaction for
increasing further satisfaction and sales growth of card.
 The majority of SBI cardholders prefer for shifting in future. It is suggested that
SBI card division should adopt right retaining strategy such as always be
regularly touch with the cardholders, so that they will know the cardholders
behaviour, expectation and attitudes, and also offer incentives, bonus and other
benefit to retain their cards. Otherwise they may lose their market share in the
study area.
 Unsolicited cardholders were highly dissatisfied than solicited. It is suggested
that the card division of banks should adopt right strategy to sell their card only
those who are willingness to buy.
 It is suggested that the card issuers should take steps to improve their level of
satisfaction among the cardholders through personal attention should be given
by the card issuing banks, as it creates a sense of satisfaction and loyalty in the
minds of the cardholders to avoid further to shift in future to any other card
issuing banks.
 The majority of multiple carholders, male and unmarried respondents have more
option to shift in future. It is suggested that the card divisions should take
appropriate marketing strategy to introduce new products in which to attract
multiple cardholders need and their expectation in the competitive business
environment especially suitable for male and unmarried cardholders to retain
them and avoid further to shift in future in the study area.
 The opinion’s of the respondents observed and suggested that the card issuers
should consider to take necessary action to waive transaction fee collected by
some of the merchant establishments, fee on cash payment at their bank
branches, levy of their own ATM charges for cash withdrawals.
 It is observed that some of the abuses including sudden interest rate hikes and
late payment fees, wrong billing process which have added to unmanageable
debts and dissatisfaction of cardholders. It is suggested that the issuers should
avoid sudden changes in interest rate, late fee and wrong billing problems of
their cardholders for satisfaction.
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 The opinion of the respondents observed that the issuers consider the interest
free on credit period for full outstanding payment due made by the cardholders
and not for their minimum amount due or part payment. It is suggested that the
issuers should consider the interest free on credit period of the cardholders to
pay their minimum amount due or part payment made by the cardholders for
better level of card sales and satisfaction.
 The card services of the issuing banks have been widely welcomed by the
people who are evident from the phenomenal increase in the number of
cardholders in the country. The issuing banks, thus enjoying the future of this
card service should be maintained a good customer relationship to continue
reaping the benefit from the card.
 The bank and its affiliates should give correct and complete informations to the
cardholders and thus made accountable for any lapse which may cause difficulty
to cardholders’ transaction.
 The issuing banks should reasonably reduce their interest, financial charges and
penalty which will reduce their cardholders’ dissatisfaction.
 It is suggested that the issuing banks should provide cheque collection boxes at
all ATMs centre for easy payment of the cardholders.
 The intermediaries of card issuers were some times do not give important and
proper information at the time of launching their products It was experienced by
some of the unsolicited (11.27%) (vide table 6.3) cardholders. This is one of the
main reasons of the cardholders as defaults and dissatisfaction. So, the
researcher suggested that all the card issuing banks to sell their cards directly
through their own bank staff without any involvement of intermediaries’ to
avoid future card default rates and dissatisfaction of cardholders.
 Many cardholders expect customer friendly approach to redress their
complaints, problems and grievances quickly. But unfortunately they suffer due
to lack of communication and language problems. So, the issuing banks provide
more toll free helpline services through their respective regional languages.
 The card issuing banks should take necessary steps to tie-up with public utility
companies and allow discount and cash back offer to their cardholders in the
study area for payments of public utility bills such as Telephone bill, Electricity
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bill and Cell recharge will increase their cardholders’ usage and level of
satisfaction.
 It is surprising that majority of cardholders are ignorant about the basic
information on the card usage, the interest rates charged on outstanding balance
and they paid interest higher than what they believed. This should be rectified by
giving awareness programmes to the cardholders.
 If the cardholders lose their cards, they should immediately report it to the
issuing bank. Otherwise they should bear full liability for the loss of card. The
researcher suggests that the issuers should fix their liability at minimum or at
fixed amount for all cardholders.
 The desire of the cardholders is observed that the lack of awareness among the
merchant establishments on the significance of the card for the growth of their
business. It is suggested that the card issuers should create the awareness of the
card acceptability and importance for growth of their business among the
merchant establishments of the card and satisfaction of the cardholders in this
study area.
 Merchant education is an area where there is considerable scope for reducing
frauds. It is suggested that the merchant establishments’ staff should be trained
properly to check photographs, signatures and ask for additional proof for
identity. The researcher also recommends that the private investigators can be
used to track down fraudsters.
 Thanjavur is rice bowl in Tamilnadu State and is purely based on agriculture and
allied industries, so that issuers has to be considered to launch new type of
products such as periodical repayment of card like Kissan Credit card (KCC)
which are suitable for agricultural farming community.

CONCLUSION
The study on “Marketing of e-banking products with reference to credit card
in Thanjavur, Tamilnadu” have been analysed in this study. Regarding the analyses
was made and found out that the growth and evolution of
e-banking products and the respondents prefer to use it for convenient transactions in
banking. The socio-economic variables which are influence the cardholders’ usage
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and possession of card for long duration of time. Satisfaction seems to be an average
through the analyses and test when it is compared to the awareness and satisfaction
degree of cardholders. As an outcome of the result depends upon the awareness level
of cardholders, they look more satisfied on the awareness level of the card being
issued by the banks. The issuers should take necessary steps to improve their
cardholders’ awareness for perennial satisfaction of the cardholders.

The problems awareness and the respondents’ satisfaction are high to which
they are not induced for shifting them in future. The unsolicited cardholders were
highly dissatisfied than solicited. The researcher has advised that the issuing banks
should take prompt steps to sell their cards only those who are willing to buy.

To conclude that the card issuer of various banks in this study area should
adopt right marketing strategy to maintain their existing and attracting new
customers for achieving long-term profitability, survival and stability of
e-banking business at present and growth of economy of our country in future.

FUTURE SCOPE FOR FURTHER STUDY

The following are the important areas has been suggested for further research
on the credit card services, problems and satisfaction in banks.
1. A study on comparative analysis of private sector and public sector banks
card services in Thanjavur.
2. The study on card services in Thanjavur and compare with the important
cities in Tamil Nadu.
3. Due to growing business the study has to be extended to whole district of
Thanjavur and compare with other important district card users’ problems
and satisfaction.
4. The study analyse the problems and satisfaction of the card services in
Thanjavur and other important towns in the district.
5. Due to growing popularity of e-banking products, the study has to be
extended to other e-banking products such as Debit Card, ATM, Mobile
Banking, and Internet Banking customer satisfaction in banks.
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