TO STUDY THE CONSUMER BUYING BEHAVIOUR TOWARDS SELECTING A BANK WITH SPECIAL REFERENCE TO KOTAK MAHINDRA BANK

A PROJECT REPORT Submitted by AKSHAY RAVAL

Batch 2010-2012 Roll no.: 10087

To Director (PGDM) In partial fulfillment of the requirements of Tolani Institute of Management Studies, Adipur For the award of the degree of Post Graduate Diploma in Management

Tolani Institute of Management Studies Adipur 370205 JULY 2011

ACKNOWLE

E ENT

Through this acknowledgement I express my sincere gratitude towards all those persons who helped me in the preparation of this project that has been a learning experience. I express my sincere thanks to all the professors who guided me and gave me valuable suggestion and encouragement. I would like to express my sincere thanks to Mr. Kiran Joshi (Branch Manager Kotak Mahindra Bank, Jamnagar), Mr. Harsh Dattani (Sales Manager Kotak Mahindra Bank, Jamnagar) and Mr. Dhiren Raja (Branch Operations Manager Kotak Mahindra Bank, Jamnagar) for their guidance and support through out this project and also for suggesting and providing the related literatures on this topic. Last but not the least; I am also thankful to honorable director Mr. A. J. Bhambhani for giving me the opportunity to learn by allowing me to do this project.

Akshay Raval Date: 01/07/2011 Place: Adipur

EXECUT

E SUMMARY

The project titled To Study The Consumer Buying Behaviour Towards Selecting A Bank With Special Reference To Kotak Mahindra Bank is prepared on the bases of following objectives and methodology. The main objectives of the study are to study the top of the mind awareness level of different Banks, to study all the attributes that affects the choice of customer while selecting a Bank in general, to determine the influence of different factors on a purchase decision of Kotak Mahindra Bank customers, to find out the satisfaction level of Kotak Mahindra Bank customers. Primary data were collected to conduct the study and helped to reach at the conclusions from the findings. In this study, primary data were collected by means of a structured questionnaire. The data is collected via one to one interaction with the respondents. The Secondary data of the study started with the literature survey of journal as well as internet that helped to comprehend the facts of the banking industry and latest occurrence in the industry. This study helped in understanding the customers expectations, which further facilitated in designing the questionnaire. From this analysis I have found out that the good customer service is the most important factor while selecting a Bank. I have found out that State Bank of India has highest top of the mind awareness and Interest Ratesand Good Customer service are the most important factors while selecting Kotak Mahindra Bank services and Satisfaction level of Kotak Mahindra Bank customers is also high. Some of suggestion has arise from respondents that Kotak Mahindra Bank should improve Cost of Service and billing, grab the market by innovative advertisement and products, more useful offer and etc. From the analysis I recommend that bank should improve their Branch Network.

CHAPTER 1 INTRODUCTION

1.1 Introduction of Project

The banking services have been recognized the world-over as an important tool for socio-economic development for a nation. It is one of the prime support services needed for rapid growth and modernization of various sectors of the economy. There is a lot of competition in banking industry, so it is necessary for every bank to find out the buying behavior. From the research, bank can come to know which factors affect the most for buying their service. By providing different schemes through which consumer will attract to buy the service, so it is necessary to conduct the research about the buying behavior of the consumer.

1.2 Introduction of Industry Banking Business Model

Indian Banking Sector

Po rters Five forces Model

T reat of entry: y Existing firms have strong presence and recognition. The majority stake in Public sector banks is being held by the government of India. This reduces the credit risk for lenders and depositors to a considerable extent. Due to collapse of a few private sector banks (and even cooperative banks for that matter), creates a virtual barrier to entry for the private and foreign players. y The industry is capital intensive, which acts as a barrier to entry. y India is a fast growing nation and many foreign banks are coming here to reap benefit out of it, which is a big threat to existing banks. Further liberalization of banking sector for foreign participants is expected post 2009. A slew of banks are in the foray which include global biggies like Royal Bank of Scotland, Switzerland's UBS, US-based GE Capital and Credit Suisse Group. y Access to distri ution channels and economies of scales of established players in the market also increases barrier to entry. As we will see ahead that banking business model is a volume game. y Reforms and policies of government are the major determinant for deciding the level of entry barrier in the Indian banking industry. y Overall, entry barrier is moderate in this industry. Bargaining power of buyers: y Bargaining power in this industry for corporates would largely depend on its credit ratings. Big corporate and companies who have big transactions between them as well as various services may have enormous bargaining power if their credit rating is high. y Individual buyers (retailers) have good bargaining power due to immense competition among financial sector entities. y Agricultural credit forms a reasonable part of a banks credit and due to government support (part of priority sector advances), customers of these segment have good bargaining power more so during good monsoons. Bargaining power of suppliers: y High during periods of tight liquidity. Trade unions in public sector banks can be anti reforms. Depositors may invest elsewhere if interest rates fall.

Main supplier of money in the banking industry is retailers and corporate. Bargaining power depends on the interest rate which is determines by the demand and supply of money in the market. Inter-bank market (money market) is also considered to be the supplier. In times when demand of money is high, costs of funds are high and vice versa. Bargaining power of the suppliers also depends on risk-return characteristics of the alternate investment products. A recent study conducted by CRISIL, explained that banks are facing tough competition from alternate investment sources like Mutual Funds, Equity, IPOs, Gold and Real Estate investments.

Threat of substitutes: y Substitutes for banks are local moneylenders and hundiwalas, financial companies and NBFCs. Local moneylenders and hundiwalas come under unorganized sector. Finance companies and NBFCs come under organized sector. Unorganized sector in India has vast coverage in small villages and towns but due to increasing network of banks and their reliability, the unorganized sector is decreasing its business. The cost of funds for banks is cheaper and therefore, can price its loans cheaper. Thus, overall power of substitute is less than moderate. Competitive Rivalry y Banking industry has two things to capitalize on. One is economies of scale and other spread margin. For achieving economies of scale, a large market share is needed and due to number of players there is intense competition. Presence of many Indian and foreign banks and their strive for higher market share will increase the competitive rivalry among existing players. Due to a large number of players, the industry is seeing and can foresee a lot of mergers and takeovers. Also, PSU banks are banking on their volumes and vast branch network make more money from lending activities. Private sector banks are offering various innovative products and variety of quick services lead to an inevitable marketing war between the banks.

Trends in the Banking Sector

The banking sector is the most dominant sector of the financial system in India. Significant progress has been made with respect to the banking sector in the post liberalization period.
y

The banking sector has witnessed a revival in credit off-take from the non-food segment in the last few years. The sound economic growth, upward migration of incomes and wider distribution to cover a larger proportion of the population is expected to increase the demand for retail loans in a significant manner. Also favorable demographic profile like 58% of the population estimated to be under 35 years, increase in upper middle/high income households, etc. are to be the main drivers for retail credit. In the medium term, stronger demand for credit from the corporate sector is also expected consequent to the resurgence of this sector. Earlier banks were seeing lower credit off take from corporates due to weak business sentiments and lower credit requirement due to improved operational efficiency by corporates. The next big trigger for the industry would be of consolidation. Though, private and foreign banks are likely to play a major role, public sector bank's participation can't be ruled out. Many of the public sector banks have already made their intentions clear for acquiring some suitable banks. Moreover large corporate houses have shown keen interest in foraying into the banking business once regulations on the same are relaxed. Also once the anomaly in voting right cap is removed, heightened M&A activity within the sector can be expected. Moreover public sector banks which have overseas presence are looking at organic growth in the international market. Public sector banks have been very proactive in their restructuring initiatives be it in technology implementation or pruning their loss assets. Windfall treasury gains made in the falling interest rate regime were used for writing off the doubtful and loss assets. Incremental provisioning made for asset slippages have safeguarded the banks from witnessing a sudden impact on their bottomlines. Retail lending (especially mortgage financing) formed a significant portion of the portfolio for most banks and the entities customized their products to cater to the diverse demands. With better penetration in the semi urban and rural areas the banks garnered a higher proportion of low cost deposits thereby economizing on the cost of funds.

The financial health of the commercial banks has improved manifolds with respect to capital adequacy, profitability, asset quality and risk management. Apart from internal usage of technology to streamline processes, the Indian banking system is in the midst of a technological revolution as far as customer offerings are concerned. Banks are offering value added services including ATMs, telephone banking, online banking, web-based products, call centers, etc which have become increasingly popular. There has also been significant restructuring on the part of public sector banks that have begun the implementation of technology at a very fast pace. Further, deregulation has opened new opportunities for banks to increase revenue by diversifying into investment banking, insurance, credit cards, depository services, mortgage, securitization, etc. Liberalization has created a more competitive environment in the banking sector. The aggregate foreign investment (FDI plus FII) limit for the private sector banking has been raised to 74 percent. The competition has increased within the banking sector (with the emergence of new private banks and foreign banks) as well as from other segments of the financial sector such as mutual funds, Non Banking Finance Companies, post offices and capital markets. The approval for banks to raise capital by way of Tier III perpetual bonds and hybrid capital gave the entities an opportunity to enhance their capital adequacy ratios before the Basel II compliances, without diluting promoter stake or taking in additional interest burden. The option of hybrid capital is seen to be increasingly leveraged by banks going forward to sustain their credit growth. Upward re-pricing of assets, lower treasury risks and no foreseeable impairment in asset quality paint a positive outlook for the sector going forward. Nevertheless, the concerns with respect to structural issues (autonomy to PSU banks, Basel II compliance) continue to linger.

Public Sector Banks..

State Bank of India and its associate banks called the State Bank group 20 nationalized banks Regional Rural Banks mainly sponsored by Public Sector Banks

Private Sector Bank..

y y y y y

Old generation private banks New generation private banks Foreign banks in India Scheduled Co-operative Banks Non-scheduled Banks

Co-operative Banks..

The co-operative banking sector has been developed in the country to the suppliment the village money lender. The co-operatiev banking sector in India is divided into 4 components

y y y y y y y y

State Co-operative Banks Central Co-operative Banks Primary Agriculture Credit Societies Land Development Banks Urban Co-operative Banks Primary Agricultural Development Banks Primary Land Development Banks State Land Development Banks

Development Banks..

y y y y y y y y y

Industrial Finance Corporation of India (IFCI) Industrial Development Bank of India (IDBI) Industrial Credit and Investment Corporation of India (ICICI) Industrial Investment Bank of India (IIBI) Small Industries Development Bank of India (SIDBI) SCICI Ltd. National Bank for Agriculture and Rural Development (NABARD) Export Import Bank of India National Housing Bank

1.3 Introduction of the Company

Kot

M i i one of Indi leading financial instit tions, offering complete financial sol tions t at encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporates.

The group has a net worth of over Rs.1,550 crore and employs over 3,000 employees in its various businesses. With a presence in 59 cities in India and offices in New York, London, Dubai and Mauritius, it services a customer base of over 5,00,000. Kotak Mahindra has international partnerships with Goldman Sachs (one of the world's largest investment banks and brokerage firms), Ford Credit (one of the world's largest dedicated automobile financiers) and Old Mutual (a large insurance, banking and asset management conglomerate).

..HISTORY
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak & Company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance Limited Kotak Mahindra is among the leading financial organization of India, with a range of financial services that caters to all customers' day to day requirements. Their products spans from commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking diverse needs of individuals and corporates are catered to. The Kotak group has a net worth of more than Rs. 6,799 crore with the branches, franchisees, representative offices and satellite offices spread across cities and towns in India. They also have global offices in New York, London, San Francisco, Dubai, Mauritius and Singapore. The Kotak Group offers their services to approximately 6.4 million customers. The Kotak Mahindra Group got incepted in 1985 in the form of Kotak Capital Management Finance Limited, being promoted by Uday Kotak, Sidney A. A. Pinto and Kotak & Company. A stake in the group was taken in by industrialists Harish Mahindra and Anand Mahindra and this is the time when the company changed its name to Kotak Mahindra Finance Limited.

..HIGHLIGHTS OF KOTAK MAHINDRA BANK..

Market Share Of Key Players In The Indian Aviation Sector

Kotak Mahindra Finance Limited started off with Bill Discounting 1986

1987

Kotak Mahindra Finance Limited makes its foray into the Lease and Hire Purchase market

The Auto Finance division starts 1990

1991

The Investment Banking Division starts off. They take over FICOM, one of India's largest financial retail marketing networks Penetrates into the Funds Syndication sector

1992

1995

The brokerage and distribution businesses of the Group gets incorporated into a separate company - Kotak Securities, whereas the investment banking arm is incorporated into a separate company - Kotak Mahindra Capital Company

1996

The Auto Finance Business of the Group is hived off into a separate company - Kotak Mahindra Prime Limited. Kotak Mahindra takes up a major stake in Ford Credit Kotak Mahindra Limited to finance Ford vehicles. They launch Matrix Information Services Limited, marking the group's entry in information distribution

1998

Kotak Mahindra Asset Management Company is incepted and they enter into

the mutual fund market. Kotak Mahindra makes a tie with Old Mutual plc. For their Life Insurance business. Kotak Securities launches the site (now www.kotaksecurities.com). Kotak Mahindra Venture Capital Fund is formed and the private equity business of the group commences.

2000

2001

Matri is sold to Friday Corporation and the Insurance Services is launched.

2003 2004

Kotak Mahindra Finance Ltd. gets converted into a commercial bank.

A private equity fund (India Growth Fund) is launched.

2005

Kotak Group launches a real estate fund The Group buys 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company and Kotak Securities

2006

THE JOURNEY SO FAR

KEY GROUP COMPANY AND THEIR BUSINESS.

The Kotak Mahindra Groups flagship company, Kotak Mahindra Finance Ltd which was established in 1985, was converted into a bank Kotak Mahindra Bank Ltd in March 2003 becoming the first Indian company to convert into a Bank. Its banking operations offers a central platform for customer relationships across the groups various businesses. The bank has a presence in the Commercial Vehicles, Retail Finance, Corporate Banking and Treasury and has recently entered the Housing Finance segment. Kotak Mahindra Capital Company Limited (KMCC), India's premier Investment Bank and a Primary Dealer (PD) approved by the RBI, is a strategic joint venture between Kotak Mahindra Bank Limited and the Goldman Sachs Group, LLP. KMCC's core business areas include Equity Issuances, Mergers & Acquisitions, Structured Finance and Advisory Services, Fixed Income Securities and Principal Business.

.KOTAK SECURITIES..
Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank Limited and the Goldman Sachs Group, LLP. Is one of India's largest brokerage and securities distribution house in India? Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and retails investor categories with presence all over the country through franchisees and co-coordinators. Kotak Street the retail arm of Kotak Securities Ltd., offers online (through www.kotakstreet.com) and offline services well-researched expertise and financial products to the retail investors.

.KOTAK CAR FINANCE.

Kotak Mahindra Primus Limited (KMP) is a joint venture between Kotak Mahindra Bank Ltd and Ford Credit International Inc., (USA) formed to finance all non-Ford passenger vehicles. KMP is one of the countrys leading players in car finance and is focused to financing and supporting automotive and automotive related manufacturers, dealers and retail customers.

.KOTAK MUTUAL FUND....

Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of Kotak Mahindra Bank, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF manages funds in excess of Rs 4000 crores and offers schemes catering to investors with varying risk- return profiles. It was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities.

Kotak Mahindra Old Mutual Life Insurance Limited

Kotak Mahindra Old Mutual Life Insurance Limited, is a joint venture between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps customers to take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially independent.

..SWOT ANALYSIS OF KOTAK MAHINDRA BANK..

1. STRENGTHS:
y y y y y y

Professional management Strong technology, Well capitalized, Comprehensive cash management system Total Deposits Rs15, 645 crore Net Advances Rs16, 625 crore

2. WEAKNESS:
y y

Latecomers Less Promotional Activities

3. OPPORTUNITIES:
y

Have best services & product compare to other bank

4. THREATS:
y y y y y

Capital Market slow-down Other better Saving Facility by other Competitor Rising Rates investment option available (like Insurance, Mutual fund, Real-estate, Gold) Government Rules And Regulation

.ORGANISATION CHART.

CHAPTER 2 Objectives of Project

2 . 1 Re se a r c h O b je c t i v e s

The first step in consumer research process is to define carefully the objectives of the study. A carefully thought-out statement of objectives help to define the type and level of information needed. y To study of the top of the mind awareness level of different Banks. y To study all the attributes that affects the choice of customer while selecting a bank in general. y To determine the influence of different choice criteria on a purchase decision of Kotak Mahindra Bank Customers. y To find out the satisfaction level of Kotak Mahindra Bank Customers.

CHAPTER 3 Methodology

3.1 Research Design:

Research design refers to framework or blue print for conducting a research project . Research Design Frameworks

RESEARCHDESIGN

EXPLORATORY RESEARCH

CONCLUSIVE RESEARCH

DESCRIPTIVE RESEARCH

CROSS SECTIONAL

SAMPLE SURVEY

3.2 Research Instrument:Questionnaire (Structured)

3.3 Data Collection Method:

Primary Data: Primary data were collected to conduct the study and helped to reach at the conclusions from the findings. In this study, primary data were collected by means of a structured questionnaire. The data is collected via one to one interaction with the respondents. Secondary Data: The study started with the literature survey of journal as well as internet that helped to comprehend the facts of the banking industry and latest occurrence in the industry. This study helped in understanding the customers expectations, which further facilitated in designing the questionnaire.

3.4 Design of Sample Survey:

The respondents are from Jamnagar who uses banking service and Kotak Mahindra Bank services. In this study, the target sample size is 100 including college students, professors, businessmen and general public. Sample Procedure: Convenience Sampling Geographical Area: Jamnagar.

3.5 Data Tabulation/Validation/Techniques of Analysis:

After the data collection, the data were tabulated in Microsoft Excel Sheet and the data are entered. During the survey, 100 respondents were interviewed from the target group. All the data were correct.

3.6 Data Analysis

I have find out that which factors affect buying behaviour of customers through informal interview with the target audience. Various factors affecting customers choice while selecting a Bank 1. Good Customer Service 2. Service Innovation 3. Cost Of Service 4. Response To Suggestions Or Complaints 5. Brand image 6. Interest Rates 7. Strength/Availability Of Services 8. Online/Mobile Banking Facility 9. Employees Behaviour 10. Advertisement, Brand Ambassador 11. Branch Network

Figure 3.1 Top-Of The Mind Awareness Of Respondents For Different Banks

Top of Mind Awareness of Banks

6 9

11 34
SBI ICICI

HDFC
23

KOTAK 17
PNB BOB

As per the survey, we can see that State Bank of India holds a clear-cut top-ofthemind recall compared to the other banks. ICICIcomes at second position followed by HDFC. KOTAK comes at fourth position and followed by PNB and Bank of Baroda.

Figure 3.2 Respondents Awareness For Different Banks

Respondents Awareness for Different Banks

1 0% 100% 80% 60% 100% 0% 0% 0% KOTAK SBI HDFC ICICI BOB UBI HSBC DENA PNB 67% 3 % 17% 9% 86% 93%

From the survey, it is found that all respondents are aware about all the di ferent f Banks. SBI has 100% awareness. ICICI comes at second position followed by HDFC. KOTAK comes at fourth position with 67% awareness and followed by BOB, PNB, UBI, DENA, and HSBC.

53%

7%

Figure 3.3 Factors Affecting Customers Decision While Selecting a Bank.

Factors Affecting Customer s Decision While Selecting A Bank

4. 4 As per the importance of scale, 1 is least important and 7 are most important. So to find out the factors which are most important for customer at the time of purcha se decision, I have calculated average response of all respondents for each factor. So we can say that any factor that has average more than 4 is important factor. And from above figure we can see that Good Customer Service is most important as its has highest average i.e. 6.3 and then after Online/Mobile Banking Facility i.e.6.01,followed by Interest Rates i.e.5.97 and so on. And least important factor for respondents while selecting a Bank is Advertisement, Brand ambassador and its average is 4.74. 6 5 4 3 2

5.3

5.6

5. 3

5.94

5.9

5.62

6.

5.

6.3

5. 5

Figure 3.4 Sources of Awareness About Kotak Mahindra Bank

Sources of Awareness About Kotak Mahindra Bank

6%

3%

4%
6 %

From above figure we can see that major Sources of Awareness about Kotak Mahindra Bank is Advertisement i.e. 67%, second main sources of awareness about Kotak Mahindra Bank is Newspapers i.e. 16% and Hoardings i.e. 14%.

Figure 3.5 Time Period Of Using Kotak Mahindra Bank Ser ice

Advertisement Hoardings
Monthly Publicity Newspapers

Time Period Of Using Kotak Mahindra Bank Service

3% %
  

%
Less Than Month

2 - 6 Months 6 - 2 Months
More Than Year
 

2%

From above figure we can see that Time period of using Kotak Mahindra Bank Services for More than 1 year i.e. 72%, 17% customers using Kotak Mahindra BankServices for 6-12 months and so on. Figure 3.6 Different Ser ices Used By Customers Of Kotak Mahindra Bank

Different Services Used By Customers Of Kotak Mahindra Bank

    

4 %

From above figure we can see that 74% of Kotak Mahindra Bank customers uses Savings Account service, 62% uses Credit/Debit/ATM Cards service and so on.

Figure 3.7 Factors Affecting Customers Decision While Selecting Kotak Mahindra Bank Ser ice

% 6 % 4 % 2 % %

4%

62%
35% %

Factors Affecting Customer s Decision While Selecting Kotak Mahindra Bank Service
" 

As per the importance of scale, 1 is least important and 7 are most important. So to find out the factors which are most important for customer at the time of purchase decision of Kotak Mahindra Bank, I have calculated average response of all respondents for each factor. So we can say that any factor that has average more than 4 is important factor. And from above figure we can see that Good Customer Service is the most important as its has highest average i.e. 6.23 and then after Interest Rates i.e.6.18,followed by Online/Mobile Banking Facility i.e.6.04 and so on. And least important factor for respondents while selecting Kotak Mahindra Bank Service is Advertisement, Brand ambassador and its average is5.08.

Figure 3.8 More Helpful Ser ices Of Kotak Mahindra Bank

5.66 5.9

5.33 5.5

5.49

6. 4 5. 4
!

5.

5.

""

6.23

6.

 

# $

6 5 4 3 2

More Helpful Services Of Kotak Mahindra Bank

100% 90% 0% 70% 60% 50% 40% 30% 20% 10% %
& '

63% 17%

5 %

From above figure we can see that major services like Savings Account i.e. 89% is the most helpful service to Kotak Mahindra Bank customers, secondly Current Account i.e. 72% is helpful to Kotak Mahindra Bank customers and Credit/Debit/ATM Cards i.e. 63% helpful. Least helpful Service is Loan Service i.e. 17% to Kotak Mahindra Bank customers.

9%

72%

Figure 3.9 Satisfaction le el of Kotak Mahindra Bank Customers

Average Satisfaction Level of Kotak Mahindra Bank Customers

7

5. 4

5 4 3 2 1 0
(

0.2

0.4

0.6

0.

As per the Satisfaction of scale, 1 is Not at all satisfied and 7 isVery satisfied. I have calculated average response of all respondents . As per above figure we can see that Average Satisfactio level of Kotak Mahindra n Bank Customers is 5.84.

Figure 3.10 Gender of Respondents

1.2

Gender
23
Male

Female
77

There were 77 Male respondents and 23 Female respondents.

Figure 3.11 Occupation of Respondents

Occupation
13 49

Service
Business

From above figure we can see that 49% of respondents are Service Persons, 38 of % respondents are having Business and 13% of respondents are students.

Student

Figure 3.12 Monthly Income of Respondents

Monthly Income

2% %
%

R . 001 - R . 10000

7%

R . 10001 - R . 15000

R . 15001 - R . 20000 R . 20001 An Above

8 4 4 4

From above figure we can see that 2% of repondents have monthly income of below Rs. 5000, 8% of respondents have monthly income of Rs. 5001 Rs. 10000, 14% have monthly income of Rs. 10001 Rs. 15000, 37% have monthly income of Rs. 15001 Rs. 20000 and 39% of respondents have monthly income of Above Rs. 20000 .

6 5 4 6

7 6 4 6

14%

R . 2 00 - R . 000

32

CHAPTER 4 Findings/Results

4.1 Findings/Results

From this study, it is found that four factors i.e. Good Customer Service, Cost of Service, Interest Rates and Online/Mobile Banking Facility play an important role in customer decision-making for a bank. First part of the study reveals that SBI enjoys a clear-cut top-of-the mind recall compared to the other brands. ICICIcomes at second position followed by HDFC. KOTAK comes at fourth position and followed by PNB and BOB. In the Second part of the study, it is found that four factors i.e. Good Customer Service, Cost of Service, Interest Rates and Online/Mobile Banking Facility play an important role in customer decision-making for a bank. For selecting a bank, good customer service is the most important factor as its has highest average i.e. 6.3 and then after Online/Mobile Banking Facility i.e.6.01,followed by Interest Rates i.e.5.97 and so on. In the third part of the study it is found that four factors i.e. Good Customer Service, Cost of Service, Interest Rates and Online/Mobile Banking Facility play an important role in customer decision-making for Kotak Mahindra Bank Service. For Selecting Kotak Mahindra Bank Service, Good Customer Service is the most important as its has highest average i.e. 6.23 and then after Interest Rates i.e.6.18,followed by Online/Mobile Banking facility i.e.6.04 and so on. In the Fourth part of the study it is found that the satisfaction level of Kotak Mahindra Bank Customers is 5.84 out of 7 on an average.

CHAPTER 5 Conclusion& Recommendations

5.1 Conclusion& Recommendations

From above analysis we can conclude that Good Customer Service is the most important factor while selecting a Bank. We can also conclude that Kotak Mahindra Bank has above average top of the mind awareness and Good Customer service is the most important factor while selecting Kotak Mahindra Bank Service and Satisfaction level of Kotak Mahindra Bank customers is also high.

CHAPTER 6 Appendix

6.1 A Sample Data Collection Form (QUESTIONNAIRE)

I Akshay Raval, student of PGDM, TIMS, Adipur, doing Project on Study the consumer buying beha ior for selecting a bank with special reference to Kotak Mahindra Bank .Can you spend five minutes to answer the following questions? This study is for academic purpose only. No information shall be disclosed anywhere. 1. Which Bank does come in your mind when you think about banking service? ___________________________ 2. What are the different banks that you aware of? Kotak Mahindra Bank SBI HDFC ICICI Bank of Baroda Other if any please Specify: _____________ HSBC Dena Bank Punjab National Bank Union Bank of India

3. There are several factors to be considered before cho osing a bank. Please mark the importance that you would attach to each factor mentioned below before selecting an offer from a bank. Mark the importance of scale: Least Important Factors To Be Consider 1.Good Customer Service 2.Service Innovation 3.Cost of Service 4. Response to suggestions or complaints 5.Brand image 6.Interest Rates 7.Strength/Availability of Services 8.Online/Mobile Banking Facility 1-2-3-4-5-6- 7 Most Important

Your Importance Score

9. Employees Behaviour 10.Advertisement,Brand Ambassador 11.Branch Network

4. From which source you came to know about Kotak Mahindra Bank ? Advertisement Hoardings Monthly publicity Newspapers 5. Since how long you are the customer of Kotak Mahindra Bank ? Less than 1 month 2-6 months 6-12 months More than 1 year 6. Which of the following services do you use of Kotak Mahindra Bank? Savings Account Current Account Online/Mobile Banking Credit/ATM Cards Loan Service

7. There are several factors to be considered before choosing Kotak Mahindra Bank . Please mark the importance that you would attach to each factor mentioned below before selecting an offer from Kotak Mahindra Bank. Mark the importance of scale: Less Important Factors To Be Consider 1.Good Customer Service 2.Service Innovation 3.Cost of Service 4. Response to suggestions or complaints 1-2-3-4-5-6-7 Most Important

Your Importance Score

5.Brand image 6.Interest Rates 7.Strength/Availability of Services 8.Online/Mobile Banking Facility 9. Employees Behaviour 10.Advertisement,Brand Ambassador 11.Branch Network

8. Which services are more helpful to you while using Kotak Mahindra Bank services? (Tick as many as apply). Savings Account Current Account Online/Mobile Banking Credit/ATM Cards Loan Service 9. In general, rate the satisfaction level of Kotak Mahindra Bank. Not at all satisfied 1 2 3 4 5 Very satisfied 6 7

10. What features or services would you like to be changed or improved in the near Future? ............ .................................. ................................................................................ ...................... ........ 11. Do you want to give any suggestion to Kotak Mahindra Bank? If yes, what are your suggestions? ....................

Personal Information
Name : _____________________________________

Age Gender Geographical Area Occupation Monthly Income

: _______________ : Male ________ Female __________ : __________________ : ___________ below Rs.5000 Rs.5001-Rs.10000 Rs. 15001 Rs.20000 : Above Rs. 20000 : : :

Rs.10001 Rs. 15000 :

6.2 Bibliography
A study on consumer buying behavior towards banks with Special reference to youth segment, 2009.
y y y y y y
y

The Icfai Journal of Marketing Management, vol. V, No.4, 2006. Manish kumar sahoo, 2010, Study of Consumer Buying Behaviour towards banks. Business India, November16, 2008. Ashok.H.Advani. Pg no: 56-58 www.iloveindia.com/economy-oindia/banking-industry.html www.zdnetasia.com/insight/specialreports/india www.google.com www.wikipedia.org/wiki/Banks_in_India