TERM PAPER

MGT-631
TOPIC-Service encyclopaedia of HSBC Bank.

Submitted by Guided by
CHANDAN KUMAR SINGH Miss Jaspreet Kaur

Section-B

Roll number –RT1902-A-27

Reg No:- 10903162

Table of Content
S. No. Topic Page
No.
1 Acknowledgement 03
2 Objective of the study 03
3 Executive summary 03
Introduction of HSBC Bank in India

4 Services Marketing Environment 04

5 Services Marketing Mix 04
The Service Segmentation 05
6 Customer Requirements & Customer Expectations 06
7 Quality Concerns 08
8 Integrated Gaps Model of Service Quality 09
09 Drafting Service Blueprint 23
Drafting Service Recovery Strategies
Designing Service Blue Print and Setting Standards
Drafting Positioning Maps
Designing Servicescape
Employee & Customer role in service delivery
.Integrated Services Marketing Communication
Pricing of Services
Delivering service through intermediaries
MANAGING WAITING LINES

10 Suggestion 24
11 Conclusion 24
12 Bibliography 25
12 Questionnaire for Customer 26

ACKNOWLEDGEMENT
I provide full justice to this term paper which is prepared by visiting various web-
sites, magazines, articles etc.
I would like to take an opportunity to thank all the people in collecting the
necessary information and making of the report. I am grateful to all of them for
their time and wisdom.

My project becomes a reality only due to cooperation of many people who had
helped me in completing this project. I sincerely extend my gratitude to Miss
Jaspreet Kaur who has given me this precious opportunity to have known about
the Customer Expectation.

Objective of the study.

 To make the service encyclopedia of HSBC Bank.
 To know how the characteristics of Service provider influence the
Customer.
 Study the Service delivery process with respect to HSBC Bank.
 To understand the service delivery process of service sectors.

Introduction of HSBC Bank in India

In India, the introduction of HSBC Bank can be dated as early as the year 1853, with the
establishment of the Mercantile Bank of India in Mumbai. Currently, HSBC Group operates
through a number of its subsidiaries in India, viz. The Hongkong and Shanghai Banking
Corporation Limited (HSBC), HSBC Asset Management (India) Private Limited, HSBC Global
Resourcing / HSBC Electronic Data Processing (India) Private Limited, HSBC Insurance
Brokers (India) Private Limited, HSBC Operations and Processing Enterprise (India) Private
Limited, HSBC Private Equity Management (Mauritius) Limited, HSBC Professional Services
(India) Private Limited, HSBC Securities and Capital Markets (India) Private Limited and HSBC
Software Development (India) Private Limited. The group carries out its Commercial Banking,
Banking Technology, Asset Management, Global Resourcing, Insurance and Data Processing
operations in the country through its subsidiaries.

Service marketing environment

The physical service environment plays an important role in shaping the service experience and
delivering customer satisfaction.The Environmental scan is a useful tools to “provide, analyse
and interpret a flow of relevant information about the bank markets, so that management and
marketing decisions are made with the real knowledge and understanding”3 of all the Macro and
Micro aspects. “Marketing research is the search and utilisation of information from all available
sources and its adoption to bank’s marketing needs”
 Macro environment
The Macro research shows that HSBC is operating in a global scale with many
competitors. At this stage of scanning, by using the PEST analyse the HSBC Macro
environment could appear in this way:

o Under a Political aspect HSBC is well aware of all different lows, regulations and codes
of Practice that operates in the five areas that it work (policy, employment laws,
environmental regulations, trade restrictions and tariffs and political stability);
o from an Economical aspect HSBC in the past have found some obstacle with different
exchange rates, inflations and low disposal incomes (the economic growth, interest
rates, exchange rates and inflation rate);
o under a Social view HSBC has benefit from both cultural and demographic aspects (the
cultural aspects and include health consciousness, population growth rate, age
distribution, career attitudes and emphasis on safety);
o from Technological aspects HSBC is working well since is one of the most modernize
banks in the world (ecological and environmental aspects and can determine the barriers
to entry, minimum efficient production level and influence outsourcing decisions).

A PEST analysis is useful for quick general analysis, which can later be easily extended into a
more detailed analysis on each HSBC area of operation like: Europe, Asia-Pacific, Americas,
Middle-East and Africa.

 Micro environment

Marketing management’s job in HSBC is to attract and build relationships with customers by
creating customer value and satisfaction. However marketing managers cannot accomplish this
task alone but their success will depend on the other factors that are coming from the company’s
Micro-environment like: suppliers, competitors, customers, distributors, intermediaries and
publics.

The Micro environment describes the relationship between HSBC and the driving forces that
control this relationship. It is a more local relationship, and HSBC may exercise a degree of
influence.

Service Marketing Mix?

Services Marketing Mix refers to the combination of marketing activities an organization engages in to promote and
sell intangible services, as opposed to tangible products. In addition to the four Ps of traditional product marketing--
product, price, place and promotion--the services marketing mix includes the three Ps of service marketing--people,
process and physical evidence. The Services Marketing Mix is also referred to as the Extended Marketing Mix.

Product – The HSBC Group offer different types of service. The product in service marketing mix is
intangible in nature. Service products cannot be measured. At the same time service products
are heterogenous, perishable and cannot be owned.
Place - Place in case of services determine where is the service product going to be located. In case
of banking sectors the bank location represent the place.
Promotion – Promotions have become a critical factor in the service marketing mix. Services are
easy to be duplicated and hence it is generally the brand which sets a service apart from its
counterpart.
Pricing – Pricing in case of services is rather more difficult than in case of products. But then who
will pay for the nice ambience you have built up for your customers? Who will pay for the band you
have for music? Thus these elements have to be taken into consideration while costing. Generally
service pricing involves taking into consideration labor, material cost and overhead costs. By adding
a profit mark up you get your final service pricing.

People – People is one of the elements of service marketing mix. People define a service. In banking,
sectors employees in your branch and their behavior towards customers defines you. In case of
service marketing, people can make or break an organization.
Process – Service process is the way in which a service is delivered to the end customer. When we
talk about the Hsbc banks we said that a customer came in banks and then go back after taking
services. That is the process of HSBC Bank.
Physical Evidence – The last element in the service marketing mix is a very important element. As
said before, services are intangible in nature. However, to create a better customer experience
tangible elements are also delivered with the service. In case of HSBC physical evidence are
Branches, Website, employee, Agent etc.

Service segmentation
  The market segmentation can help the marketing manager in determining the best marketing mix in
deploying and serving the unique segment. This process is the partitioning markets into the segments for
the potential customers and has the objective for improving the competitive position of the company
which can serve its customers for betterment

 The information technology is considered to be one of the major tools for the functionality scale
worldwide of the company. It has its own website and it also has the e-business for internet, interactive,
PC internet, and the telephone banking.

 The Market Segmentation is the center for the robust development of marketing strategy which involves
the identification of the customers’ perception, needs, expectation, and the buying behavior in order for
them to group homogeneously for the customers who can be satisfied as well as marketed to the similar
manner

The company has been open that the customers’ needs are important for their development and had been
done by dividing the customers in their location and with respect to their cultureLastly, this market
segmentation is considered to be generic wherein it greatly depends on the region for the several
subsidiaries of the location of HSBC and some of the strategies are put to good (Ibid, 2008).

 In the year 2003, the company had invested huge amount for proprietary relationship to the customers
and to their management system so that the customers are managed efficiently.

Customer requirements and Expectations

 The most of the people is using the service is more then 2 years. It show
that the consumer are satisfied with the services.
 When we analysis the data we found that 42% people said that Friends
influnce more than others. 24% people said that advertisement influenced.
 In the above we see that the consumer chose the mainly three factors which
are business, safety, and investment which are the main factors of consumer
preference while selecting banking services.
 Every consumer want to the better service so here the most four factors
which is influence the consumer is follows:
 Growth
 Availability
 Good Service
 Safety
When we talk about the customer expectation we know that in banking sector
customer expected high service form his service provider. So we say that HSBC
able to provide the better service to his customer.

Quality concerns
Quality of service is a broad term that is used in both customer care evaluations and in
technological evaluations. In both applications, the quality of service has to do with measuring
the incidence of errors within a process that result in the creation of issues for an end user. The
goal of any quality of service evaluation is to minimize the incidence of transmission issues and
the error rates that may result.
1. Access - the ease and convenience of accessing the service(s).
2. Communication - keeping your users informed; listening to your users.
3. Competence - having the skills and knowledge to provide the service(s).
4. Courtesy - politeness, respect, consideration, and friendliness of staff at all levels.
5. Credibility - trustworthiness, reputation and image.
6. Reliability - providing consistent, accurate and dependable service(s); delivering the
service that was promised.
7. Responsiveness - being willing and ready to provide service(s) when needed.
8. Security - physical safety; financial security; confidentiality.
9. Tangibles - the physical aspects of the service such as equipment, facilities, resources.
10. Understanding the customer - knowing individual customer needs.

INTEGRATED GAP MODEL OF SERVICE

QUALITY
The 7 service quality gaps are:-
1. The knowledge gap i.e. here HSBC should understand the customer expectation like best
Employee and service to satisfied his customer. HSBC is getting feedback sessions and the best
way is to converge those suggestions into action plan if possible and feasible, turn information
into action.
2. The standards gap i.e. Here LPU is taking serious actions. It allows most intelligent
students to come and discuss the problems/opportunities, and then these are taken under
consideration. Also LPU is giving priority to those tasks which rank top in quality
concerns. LPU should ensure that employees understand and accept goals and priorities.
Reward employees for attaining quality goals which is lacking in LPU yet. Means service
standards are set and communicated to all.
3. The delivery gap i.e. here LPU should ensure that whether service performance meets
standards or not. Train employees, take special lectures from senior and best faculty or
outsource the training part. Build team work and treat students as partial employees. Ms.
Rashmi Mittal (madam) takes herself special lectures to meet students, discuss with them
and takes appropriate actions. All deans of schools also do the same task to be more
student-oriented.
4. Internal communication gap i.e. LPU should communicate only those promises which
are realistic. Like the best hostel facility, infra structure, faculty, yet faculty is not upto
mark. But no doubt fee structure is comparatively low and affordable due to mass no. of
students getting admission and thus cost gets disseminated in all.
5. Perception gap i.e. difference between what is delivered and what is received. This can
be overcome by taking positive feed back and keeping best faculty with updated course
content.
6. Interpretation gap i.e. what promised and what student thinks was promised. This can
be overcome by proper and detailed information about various aspects of LPU and its
services. Just presently LPU CAD employees are giving new students a round to the
respective department, meets with the existing students and aware them about the real
picture.
7. The service gap i.e. what students expect to receive and there perception of service that
Is delivered. Say students expect placement with good package (3-4 lac/annum) but in
actual it doesn’t happen. Here the fault may be in student personality or the placement
cell. As per my information LPU placement cell employees are working leaps and bounds
to ensure that each student gets placed from campus placement drive. Unfortunately some
students may not get placed and also the %age in final term is also a concern.

SERVICE RECOVERY STRATEGIES

Service recovery refers to the actions taken by an Organization in response to a service
failure. Failure occurs for all kinds of reasons:
1. The service may be unavailable when promised
2. it may be delivered late or too slowly
3. the outcome may be incorrect or poorly executed
4. employees may be rude or uncaring
All of these types of failures bring about negative feelings and responses from customers.
The Impact of Service Failure & Recovery
An effective service recovery strategy has multiple potential Positive impacts:
1. It can increase customer satisfaction and loyalty
2. Generate positive word of mouth
3. A well designed, well-documented service recovery strategy also provides
information that can be used to improve service as part of a continuous
improvement effort.
4. Making adjustments learned from recovery experiences, companies increase the
likelihood of “doing it right first time”.
5. This ultimately reduces costs of failures and increases initial customer
satisfaction.
Bank Service Recovery Strategies
 24

SM Bank Service Recovery

Strategies

Service
Recovery
Strategies

McGraw-Hill © 2000 The McGraw-Hill Companies

Position mapping
Position Mapping organizes data to find patterns that help create useful frameworks. Position Mapping uses
qualitative axes to place data in a two dimensional space. Once the data is mapped, patterns, groupings and
hierarchies can be created to identify insights.

At its most basic level, Position Mapping consists of two non-dependent axes and many data points. Selecting the
axes is and essential part of the success of the framework because if the axes are too closely related, the patterns
may not yield interesting results.

Servicescape
Servicescape is a concept that was developed by Booms and Bitner to emphasize the impact of
the physical environment in which a service process takes place.
Physical evidence may be likened to 'landscape'. It includes facilities exterior (landscape, exterior design, signage,
parking, surrounding environment) and facilities interior (interior design & decor, equipment, signage, layout, air
quality, temperature and ambiance). Servicescape along with other tangibles like business cards, stationery, billing
statements, reports, employee dress, uniforms, brochures, web pages and virtual servicescape forms the 'Physical
Evidence' in marketing of services.
The service environment (or servicescape) consists of four dimensions.
_ The physical facility
_ The location
_ Ambient conditions
_ Interpersonal conditions
The physical facility: The campus is spread in 600 ACRES, the largest areas compared to any
other private university in India. Lovely has the most hi-tech campus with WIFI. There are many
buildings where services are delivered to the students.
The location: Lovely University Punjab is situated in lush green area about 15 kms from
Jalandhar. The main hub of NRI’s.
Ambient conditions: Lovely has well furnished rooms with audio visual medias in order to
make the services better.
Interpersonal conditions: The persons which are responsible for
delivery of services to students are important components of service environment. The service
personal at Lovely University are really committed to provide best services for the students and
guardians. They ensure that the services delivered by the university should make students
delighted so that they will achieve their goals in an efficient manner.
Employees' Roles in Banking Service Delivery
The assumption is that even when customer expectations is well understood (Gap1) and
services have been designed and specified to conform to those expectations (Gap2), there
may still may discontinuities in service quality when the service is not delivered as
specified. The role customers can play in services delivery is that of contributor to their own
satisfaction
and the ultimate quality of the services they receive. Customers may not care that they have
increased the productivity of the organization through their participation, but they probably do
care a great deal about whether their needs are fulfilled. Effective customer participation can
increase the likelihood that needs are met and that the benefits the customer is seeking are
• actually attained.

• INTEGRATING SERVICES
MARKETING
COMMUNICATION
Communication is always one of the most important and vital strategic areas of an
organization's success. You can have the best or most innovative products or services,
but if your internal and external communications are weak, then the demand for your
products or services raises a personal flag of concern. When communicating the value
of your products or services, you want to focus on how they will benefit your clients.

Integrated Marketing Communications is a term used to describe a holistic approach to

marketing communication. It aims to ensure consistency of message and the complementary use
of media. There are five basic tools of integrated marketing communication:

1. Advertising: 
This tool can get your messages to large audiences efficiently through such avenues as radio, TV, Magazines,
Newspapers (ROP), Internet, Billboards and other mobile technological communication devices. This method can
efficiently reach a large number of consumers, although the costs may be somewhat expensive.
2. Sales Promotion: 
This tool is used through coupons, contests, samples, premiums, demonstrations, displays or incentives. It is used to
accelerate short-term sales, by building brand awareness and encouraging repeat buying.

3. Public Relations: 
This integrated marketing communications tool is initiated through public appearances, news/press releases or event
sponsorships, to build trust and goodwill by presenting the product, company or person in a positive light.

4. Direct Marketing: 
This tool will utilized email, mail, catalogs, encourage direct responses to radio and TV, in order to reach targeted
audiences to increase sales and test new products and alternate marketing tactics.

5. Personal Selling: 
Setting sales appointments and meetings, home parties, making presentations and any type of one-to-one
communication, to reach your customers and strengthen your relationship with your clients, initiate this IMC tool.

PRICING OF SERVICES
Attaching a fair and accurate price tag to your products and services can be a tricky balancing act. It should come as
no surprise that many business owners have an ongoing struggle with setting their pricing strategies. Some use
inappropriate approaches, for example, attempting to always be the lowest-priced player in the market, while others
fail to change their approach to capitalize on market changes.

As you know, the success of your products and services relies directly upon your ability to sell them, which in turn
is dependent upon your pricing strategy. If your prices come in too low, you won't make a reasonable profit. Go too
high, and you may weaken the demand for your offerings. But the truth is you don't have to be a magician to get
pricing right.

DELIVERING SERVICE THROUGH

INTERMEDIARIES
Service intermediaries perform many important functions for the service principal. First, they often coproduce the service,
fulfilling service principals' promises to customers. Franchise services such as haircutting, key making, and dry cleaning are
produced by the intermediary (the franchisee) using a process developed by the service principal (hence the phrase
"coproducer"). Service intermediaries also make services locally available, providing time and place convenience for the
customer. Because they represent multiple service principals, such intermediaries as travel and insurance agents provide a
retailing function for customers, gathering together in one place a variety of choices. In barter, an intermediary is a
person or group who stores valuables in trade until they are needed, parties to the barter or others
have space available to take delivery of them and store them, or until other conditions are met. In
a larger sense, an intermediary can be a person or organization who or which facilitates a
contract
between two other parties. The university uses only some of the intermediaries like
• Electronic channels
• Agents at different places
• Franchisee

MANAGING WAITING LINE

Managing waiting lines create a great dilemma for managers seeking to improve the return on
investment of their operations. On the one hand, customers dislike waiting intensely. If they
feel they are waiting too long at your firm for service, they will either leave the line prematurely
or not return to your firm the next time they need service. This will reduce customer demand
and eventually revenue and profit. Furthermore, longer waiting times increase costs because
longer waiting times equal more customers in a firmís building. Hence, a firm will need more
space for the customers to wait in, which increases rent.