Description
Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Research has shown that consumer behaviour is difficult to predict, even for experts in the field.
TABLE OF CONTENT S.NO 01 02 03 04 05 06 07 08 09 10 11 CONTENTS INTRODUCTION COMPANY PROFILE ABOUT CREDIT CARD OBJECTIVE OF THE STUDY RESEARCH METHODOLOGY DATA ANALYSIS & INTERPRETATION FINDINGS SUGGESTION CONCLUSION BIBLIOGRAPHY ANNEXURE PAGE NO. 03 07-19 20-45 46 49-54 54-67 68 71 72 74 76
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CHAPTER NO-01
INTRODUCTION
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CONSUMER BEHAVIOUR Consumer behaviour is the study of when, why, how, and where people do or do not buy product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalisation, customisation and one-to-one marketing. Social functions can be categorized into social choice and welfare functions. Each method for vote counting is assumed as a social function but if Arrow’s possibility theorem is used for a social function, social welfare function is achieved. Some specifications of the social functions are decisiveness, neutrality, anonymity, monotonicity, unanimity, homogeneity and weak and strong Pareto optimality. No social choice function meets these requirements in an ordinal scale simultaneously. The most important characteristic of a social function is identification of the interactive effect of alternatives and creating a logical relation with the ranks. Marketing provides services in order to satisfy customers. With that in mind, the productive system is considered from its beginning at the production level, to the end of the cycle, the consumer (Kioumarsi et al., 2009).
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Belch and Belch define consumer behaviour as 'the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires'.'
Black box model ENVIRONMENTAL BUYER'S BLACK BOX FACTORS Marketing Environmental Buyer Decision Stimuli Stimuli Characteristics Process Problem recognition Economic Product Price Place Promotion Technological Political Cultural Demographic Natural Attitudes Motivation Perceptions Personality Lifestyle Knowledge Information search Alternative evaluation Purchase decision Post-purchase behaviour The black box model shows the interaction of stimuli, consumer characteristics, decision process and consumer responses. It can be distinguished between interpersonal stimuli (between people) or intrapersonal stimuli (within people). The black box model is related to the black box theory of behaviourism, where the focus is not set on the processes inside a consumer, but the relation between the stimuli and the response of the consumer. The marketing stimuli are planned and processed by the companies, whereas the environmental stimulus are given by social factors, based on the economical, political and cultural circumstances of a society. The buyers black box contains the buyer characteristics and the decision process, which determines the buyers response.
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BUYER'S RESPONSE
Product choice Brand Dealer Purchase timing Purchase amount choice choice
The black box model considers the buyers response as a result of a conscious, rational decision process, in which it is assumed that the buyer has recognized the problem. However, in reality many decisions are not made in awareness of a determined problem by the consumer. Information search Once the consumer has recognised a problem, they search for information on products and services that can solve that problem. Belch and Belch (2007) explain that consumers undertake both an internal (memory) and an external search. Sources of information include:
• • • •
Personal sources Commercial sources Public sources Personal experience
The relevant internal psychological process that is associated with information search is perception. Perception is defined as 'the process by which an individual receives, selects, organises, and interprets information to create a meaningful picture of the world' The selective perception process Stage Description - Selective exposure consumers select which promotional messages they will expose themselves to. - Selective attention consumers select which promotional messages they will pay attention to
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- Selective comprehension consumer interpret messages in line with their beliefs, attitudes, motives and experiences -Selective retention consumers remember messages that are more meaningful or important to them The implications of this process help develop an effective promotional strategy, and select which sources of information are more effective for the brand.CV Information evaluation At this time the consumer compares the brands and products that are in their evoked set. How can the marketing organization increase the likelihood that their brand is part of the consumer's evoked (consideration) set? Consumers evaluate alternatives in terms of the functional and psychological benefits that they offer. The marketing organization needs to understand what benefits consumers are seeking and therefore which attributes are most important in terms of making a decision. Purchase decision Once the alternatives have been evaluated, the consumer is ready to make a purchase decision. Sometimes purchase intention does not result in an actual purchase. The marketing organization must facilitate the consumer to act on their purchase intention. The organisation can use variety of techniques to achieve this. The provision of credit or payment terms may encourage purchase, or a sales promotion such as the opportunity to receive a premium or enter a competition may provide an incentive to buy now. The relevant internal psychological process that is associated with purchase decision is integration.Once the integration is achieved, the organisation can influence the purchase decisions much more easily.
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Postpurchase evaluation It is common for customers to experience concerns after making a purchase decision. This arises from a concept that is known as “cognitive dissonance”. The customer, having bought a product, may feel that an alternative would have been preferable. In these circumstances that customer will not repurchase immediately, but is likely to switch brands next time. To manage the post-purchase stage, it is the job of the marketing team to persuade the potential customer that the product will satisfy his or her needs. Then after having made a purchase, the customer should be encouraged that he or she has made the right decision.it is not effected by advertisement. Internal influences Consumer behaviour is influenced by: demographics, psychographics (lifestyle), personality, motivation, knowledge, attitudes, beliefs, and feelings. consumer behaviour concern with consumer need consumer actions in the direction of satisfying needs leads to his behaviour of every individuals depend on thinking External influences Consumer behaviour is influenced by: culture,sub-culture, locality, royalty, ethnicity, family, social class, reference groups, lifestyle, and market mix factors. Consumer behavior involves the psychological processes that consumers go through in recognizing needs, finding ways to solve these needs, making purchase decisions (e.g., whether or not to purchase a product and, if so, which brand and where), interpret information, make plans, and implement these plans (e.g., by engaging in comparison shopping or actually purchasing a product).
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Sources of influence on the consumer. The consumer faces numerous sources of influence.
Often, we take cultural influences for granted, but they are significant. An American will usually not bargain with a store owner. This, however, is a common practice in much of the World. Physical factors also influence our behavior. We are more likely to buy a soft drink when we are thirsty, for example, and food manufacturers have found that it is more effective to advertise their products on the radio in the late afternoon when people are getting hungry. A person’s self-image will also tend to influence what he or she will buy—an upwardly mobile manager may buy a flashy car to project an image of success. Social factors also influence what the consumers buy—often, consumers seek to imitate others whom they admire, and may buy the same
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brands. The social environment can include both the mainstream culture (e.g., Americans are more likely to have corn flakes or ham and eggs for breakfast than to have rice, which is preferred in many Asian countries) and a subculture (e.g., rap music often appeals to a segment within the population that seeks to distinguish itself from the mainstream population). Thus, sneaker manufacturers are eager to have their products worn by admired athletes. Finally, consumer behavior is influenced by learning—you try a hamburger and learn that it satisfies your hunger and tastes good, and the next time you are hungry, you may consider another hamburger. Consumer Choice and Decision Making: Problem Recognition. One model of consumer decision making involves several steps. The first one is problem recognition—you realize that something is not as it should be. Perhaps, for example, your car is getting more difficult to start and is not accelerating well. The second step is information search—what are some alternative ways of solving the problem? You might buy a new car, buy a used car, take your car in for repair, ride the bus, ride a taxi, or ride a skateboard to work. The third step involves evaluation of alternatives. A skateboard is inexpensive, but may be illsuited for long distances and for rainy days. Finally, we have the purchase stage, and sometimes a post-purchase stage (e.g., you return a product to the store because you did not find it satisfactory). In reality, people may go back and forth between the stages. For example, a person may resume alternative identification during while evaluating already known alternatives. Consumer involvement will tend to vary dramatically depending on the type of product. In general, consumer involvement will be higher for products that are very expensive (e.g., a home, a car) or are highly significant in the consumer’s life in some other way (e.g., a word processing program or acne medication). It is important to consider the consumer’s motivation for buying products. To achieve this goal, we can use the Means-End chain, wherein we consider a
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logical progression of consequences of product use that eventually lead to desired end benefit. Thus, for example, a consumer may see that a car has a large engine, leading to fast acceleration, leading to a feeling of performance, leading to a feeling of power, which ultimately improves the consumer’s selfesteem. A handgun may aim bullets with precision, which enables the user to kill an intruder, which means that the intruder will not be able to harm the consumer’s family, which achieves the desired end-state of security. In advertising, it is important to portray the desired end-states. Focusing on the large motor will do less good than portraying a successful person driving the car.
Information search and decision making. Consumers engage in both internal and external information search. Internal search involves the consumer identifying alternatives from his or her memory. For certain low involvement products, it is very important that marketing programs achieve “top of mind” awareness. For example, few people will search the Yellow Pages for fast food restaurants; thus, the consumer must be able to retrieve one’s restaurant from memory before it will be considered. For high involvement products, consumers are more likely to use an external search. Before buying a car, for example, the consumer may ask friends’ opinions, read reviews in Consumer Reports, consult several web sites, and visit several dealerships. Thus, firms
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that make products that are selected predominantly through external search must invest in having information available to the consumer in need—e.g., through brochures, web sites, or news coverage.
A compensatory decision involves the consumer “trading off” good and bad attributes of a product. For example, a car may have a low price and good gas mileage but slow acceleration. If the price is sufficiently inexpensive and gas efficient, the consumer may then select it over a car with better acceleration that costs more and uses more gas. Occasionally, a decision will involve a noncompensatory strategy. For example, a parent may reject all soft drinks that contain artificial sweeteners. Here, other good features such as taste and low calories cannot overcome this one “non-negotiable” attribute.
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CHAPTER NO-02
COMPANY
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ABOUT US State Bank of India welcomes you to explore the world of premier bank in India. In this section, you can access detailed information on Overview of the Bank, Technology Upgradation in the Bank, Board of Directors, Financial Results and Shareholder Info. The Bank is actively involved since 1973 in non-profit activity called Community Services Banking. All our branches and administrative offices throughout the country sponsor and participate in large number of welfare activities and social causes. Our business is more than banking because we touch the lives of people anywhere in many ways. Our commitment to nation-building is complete & comprehensive. TRANSFORMATION JOURNEY IN STATE BANK OF INDIA The State Bank of India, the country’s oldest Bank and a premier in terms of balance sheet size, number of branches, market capitalization and profits is today going through a momentous phase of Change and Transformation – the two hundred year old Public sector behemoth is today stirring out of its Public Sector legacy and moving with an agility to give the Private and Foreign Banks a run for their money. The bank is entering into many new businesses with strategic tie ups – Pension Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale Merchant Acquisition, Advisory Services, structured products etc – each one of these initiatives having a huge potential for growth. The Bank is forging ahead with cutting edge technology and innovative new banking models, to expand its Rural Banking base, looking at the vast untapped
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potential in the hinterland and proposes to cover 100,000 villages in the next two years. It is also focusing at the top end of the market, on whole sale banking capabilities to provide India’s growing mid / large Corporate with a complete array of products and services. It is consolidating its global treasury operations and entering into structured products and derivative instruments. Today, the Bank is the largest provider of infrastructure debt and the largest arranger of external commercial borrowings in the country. It is the only Indian bank to feature in the Fortune 500 list. The Bank is changing outdated front and back end processes to modern customer friendly processes to help improve the total customer experience. With about 8500 of its own 10000 branches and another 5100 branches of its Associate Banks already networked, today it offers the largest banking network to the Indian customer. The Bank is also in the process of providing complete payment solution to its clientele with its over 8500 ATMs, and other electronic channels such as Internet banking, debit cards, mobile banking, etc. With four national level Apex Training Colleges and 54 learning Centres spread all over the country the Bank is continuously engaged in skill enhancement of its employees. Some of the training programes are attended by bankers from banks in other countries. The bank is also looking at opportunities to grow in size in India as well as Internationally. It presently has 82 foreign offices in 32 countries across the globe. It has also 7 Subsidiaries in India – SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards - forming a formidable group in the Indian Banking scenario. It is in the process of raising capital for its growth and also consolidating its various holdings. Throughout all this change, the Bank is also attempting to change old mindsets, attitudes and take all employees together on this exciting road to Transformation. In a recently concluded mass internal communication programme termed ‘Parivartan’ the Bank rolled out over 3300 two day
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workshops across the country and covered over 130,000 employees in a period of 100 days using about 400 Trainers, to drive home the message of Change and inclusiveness. The workshops fired the imagination of the employees with some other banks in India as well as other Public Sector Organizations seeking to emulate the programme. The CNN IBN, Network 18 recognized this momentous transformation journey, the State Bank of India is undertaking, and has awarded the prestigious Indian of the Year – Business, to its Chairman, Mr. O. P. Bhatt in January 2008. INVESTOR RELATIONS State Bank of India, the country’s largest commercial Bank in terms of profits, assets, deposits, branches and employees, welcomes you to its ‘Investors Relations’ Section. SBI, with its heritage dating back to the year 1806, strives to continuously provide latest and upto date information on its financial performance. It is our endeavor to walk on the path of transparency and allow complete access to all the stakeholders enabling total awareness about the Bank. The Bank communicates with the stakeholders through a variety of channels, such as through e-mail, website, conference call, one-on-one meeting, analysts’ meet and attendance at Investor Conference throughout the world. Please find below Bank’s financial results, analysis of performance and other highlights which will be of interest to Investors, Fund Managers and Analysts. SBI has always been fundamentally strong in its core business which is mirrored in its results – year after year.
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Our commitment to nation-building is complete & comprehensive. Central Board of State Bank of India (As on 13th May 2009) Sr. No. Name of Director Shri O.P. Bhatt 1. Chairman Shri S.K. Bhattacharyya 2. MD & CC&RO Shri R. Sridharan 3. MD & GE(A&S) 4. Dr. Ashok Jhunjhunwala 5. Shri Dileep C. Choksi 6. Shri S. Venkatachalam 7. Shri. D. Sundaram 8. Dr. Deva Nand Balodhi 9. Prof. Mohd. Salahuddin Ansari 10. Dr.(Mrs.) Vasantha Bharucha 11. Dr. Rajiv Kumar 12. Shri Ashok Chawla 13. Smt. Shyamala Gopinath Sec. of SBI Act, 1955 19(a) 19(b) 19(b) 19(c) 19(c) 19(c) 19(c) 19(d) 19(d) 19(d) 19(d) 19(e) 19(f)
PERSONAL BANKING Welcome to SBI's Retail Banking State Bank of India offers a wide range of services in the Personal Banking Segment which are indexed here.
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Our products are designed with flexibility to suit your personal requirements. Enjoy 24 hour facility through our ATMs - growing speedily it has crossed the 5000 mark Watch this space for more details. SBI Term Deposits SBI Loan For Pensioners
SBI Recurring Deposits Loan Against Mortgage Of Property SBI Housing Loan SBI Car Loan SBI Educational Loan SBI Personal Loan Loan Against Shares & Debentures Rent Plus Scheme Medi-Plus Scheme Rates Of Interest
Experience a whole new world of banking at our newly opened Personal Banking Branches (PBBs)- often dubbed boutique branches by others. Customer friendly knowledgeable staff will cater to your financial requirements with speed and efficiency. Do visit one and find out for yourself. for addresses of our PBBs.
DEPOSIT SCHEMES Whatever your needs - an investment of your surplus funds or to create a fund for your childrens' education and marriage. You will find a product from SBI that suits your requirement, delivered at a branch close to you. Open an account with any of our branches, all of them are fully computerised, and realise the advantage of our vast network. Place funds in Multi Option Deposit Scheme, a term deposit which is not fixed at all and comes with a
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unique break-up facility which provides you full liquidity as well as benefits of higher rates of returns, through your savings bank account. Alternately, keep that deposit intact by availing an overdraft facility, to meet your occasional temporary funds requirements. Want to build up savings slowly? Discover our Recurring Deposit Account. You can save a little every month to build up the desired corpus to meet your future requirement of funds. Our products are designed with flexibility to suit your personal requirements. Enjoy 24 hour banking facility through our Internet Banking/ widest network of ATMs. Please watch this space for more details. Current Account Savings Bank Account Term Deposits Special Term Deposits Multi Scheme Scheme Option Savings Plus Account Basic Banking 'No frills Account' Recurring Deposit Account PREMIUM SAVINGS ACCOUNT
Deposit Rate of Interest on Domestic Term Deposits SBI Tax Savings Scheme, 2006
The Industrial Development Bank of India Limited commonly known by its acronym IDBI is one of India's leading public sector banks and 4th largest Bank in overall ratings. RBI categorised IDBI as an "other public sector bank". It was established in 1964 by an Act of Parliament to provide credit and other facilities for the development of the fledgling Indian industry. It is currently 10th largest development bank in the world in terms of reach with 1228 ATMs, 720 branches and 486 centers. Some of the institutions built by IDBI are the
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National Stock Exchange of India (NSE), the National Securities Depository Services Ltd (NSDL), the Stock Holding Corporation of India (SHCIL), the Credit Analysis & Research Ltd, the Export-Import Bank of India(Exim Bank), the Small Industries Development bank of India(SIDBI), the Entrepreneurship Development Institute of India, and IDBI BANK, which today is owned by the Indian Government, though for a brief period it was a private scheduled bank. Recent Development To meet emerging challenges and to keep up with reforms in financial sector, IDBI has taken steps to reshape its role from a development finance institution to a commercial institution. With the Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003, IDBI attained the status of a limited company viz. "Industrial Development Bank of India Limited" (IDBIL). Subsequently, the Reserve Bank of India (RBI) issued the requisite notification on September 30, 2004 incorporating IDBI as a 'scheduled bank' under the RBI Act, 1934. Consequently, IDBI, formally entered the portals of banking business as IDBIL from October 1, 2004. The commercial banking arm, IDBI BANK, was merged into IDBI. In March 2008, IDBI Bank entered into a joint venture with Federal Bank and Fortis Insurance International to form IDBI Fortis Life Insurance, of which IDBI Bank owns 48 percent. The company ended the year with over 300 Cr in premiums as on 31 March 2009. Industrial Development Bank of India (IDBI) The Industrial Development Bank of India (IDBI) was established on July 1, 1964 under an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India. In 16 February 1976, the ownership of IDBI was transferred to the Government of India and it was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and
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developing industry in the country. Although Government shareholding in the Bank came down below 100% following IDBI’s public issue in July 1995, the former continues to be the major shareholder (current shareholding: 52.3%). During the four decades of its existence, IDBI has been instrumental not only in establishing a well-developed, diversified and efficient industrial and institutional structure but also adding a qualitative dimension to the process of industrial development in the country. IDBI has played a pioneering role in fulfilling its mission of promoting industrial growth through financing of medium and long-term projects, in consonance with national plans and priorities. Over the years, IDBI has enlarged its basket of products and services, covering almost the entire spectrum of industrial activities, including manufacturing and services. IDBI provides financial assistance, both in rupee and foreign currencies, for green-field projects as also for expansion, modernisation and diversification purposes. In the wake of financial sector reforms unveiled by the government since 1992, IDBI evolved an array of fund and fee-based services with a view to providing an integrated solution to meet the entire demand of financial and corporate advisory requirements of its clients. IDBI also provides indirect financial assistance by way of refinancing of loans extended by State-level financial institutions and banks and by way of rediscounting of bills of exchange arising out of sale of indigenous machinery on deferred payment terms. IDBI has played a pioneering role, particularly in the pre-reform era (1964– 91),in catalyzing broad based industrial development in the country in keeping with its Government-ordained ‘development banking’ charter. In pursuance of this mandate, IDBI’s activities transcended the confines of pure long-term lending to industry and encompassed, among others, balanced industrial growth through development of backward areas, modernisation of specific industries, employment generation, entrepreneurship development along with support
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services for creating a deep and vibrant domestic capital market, including development of apposite institutional framework. Narasimam committee recommends that IDBI should give up its direct
financing functions and concentrate only in promotional and refinancing role. But this recommendation was rejected by the government. Latter RBI constituted a committee under the chairmanship of S.H.Khan to examine the concept of development financing in the changed global challenges. This committee is the first to recommend the concept of universal banking. The committee wanted to the development financial institution to diversify its activity. It recommended to harmonise the role of development financing and banking activities by getting away from the conventional distinction between commercial banking and developmental banking. In September 2003, IDBI diversified its business domain further by acquiring the entire shareholding of Tata Finance Limited in Tata Home finance Ltd., signaling IDBI’s foray into the retail finance sector. The fully-owned housing finance subsidiary has since been renamed ‘IDBI Home finance Limited’. In view of the signal changes in the operating environment, following initiation of reforms since the early nineties, Government of India has decided to transform IDBI into a commercial bank without eschewing its secular development finance obligations. The migration to the new business model of commercial banking, with its gateway to low-cost current, savings bank deposits, would help overcome most of the limitations of the current business model of development finance while simultaneously enabling it to diversify its client/ asset base. Towards this end, the IDB (Transfer of Undertaking and Repeal) Act 2003 was passed by Parliament in December 2003. The Act provides for repeal of IDBI Act, corporatisation of IDBI (with majority Government holding; current share: 58.47%) and transformation into a commercial bank. The provisions of the Act have come into force from July 2, 2004 in terms of a Government Notification to this effect. The Notification facilitated formation,
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incorporation and registration of Industrial Development Bank of India Ltd. as a company under the Companies Act, 1956 and a deemed Banking Company under the Banking Regulation Act 1949 and helped in obtaining requisite regulatory and statutory clearances, including those from RBI. IDBI would commence banking business in accordance with the provisions of the new Act in addition to the business being transacted under IDBI Act, 1964 from October 1, 2004, the ‘Appointed Date’ notified by the Central Government. IDBI has firmed up the infrastructure, technology platform and reorientation of its human capital to achieve a smooth transition. IDBI Bank, with which the parent IDBI was merged, was a vibrant new generation Bank. The Pvt Bank was the fastest growing banking company in India. The bank was pioneer in adapting to policy of first mover in tier 2 cities. The Bank also had the least NPA and the highest productivity per employee in the banking industry. On July 29, 2004, the Board of Directors of IDBI and IDBI Bank accorded in principle approval to the merger of IDBI Bank with the Industrial Development Bank of India Ltd. to be formed incorporated under the Companies Act, 1956 pursuant to the IDB (Transfer of Undertaking and Repeal) Act, 2003 (53 of 2003), subject to the approval of shareholders and other regulatory and statutory approvals. A mutually gainful proposition with positive implications for all stakeholders and clients, the merger process is expected to be completed during the current financial year ending March 31, 2005. The immediate fall out of the merger of IDBI and idbi bank was the exit of employees of idbi bank. The cultures in the two organizations have taken its toll. The IDBI BANK now is in a growing fold. With its retail banking arm expanding further after the merger of United western Bank. IDBI would continue to provide the extant products and services as part of its development finance role even after its conversion into a banking company. In
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addition, the new entity would also provide an array of wholesale and retail banking products, designed to suit the specific needs cash flow requirements of corporates and individuals. In particular, IDBI would leverage the strong corporate relationships built up over the years to offer customised and total financial solutions for all corporate business needs, single-window appraisal for term loans and working capital finance, strategic advisory and “hand-holding” support at the implementation phase of projects, among others. IDBI’s transformation into a commercial bank would provide a gateway to lowcost deposits like Current and Savings Bank Deposits. This would have a positive impact on the Bank’s overall cost of funds and facilitate lending at more competitive rates to its clients. The new entity would offer various retail products, leveraging upon its existing relationship with retail investors under its existing Suvidha Flexi-bond schemes. In the emerging scenario, the new IDBI hopes to realize its mission of positioning itself as a one stop super-shop and most preferred brand for providing total financial and banking solutions to corporates and individuals, capitalising on its intimate knowledge of the Indian industry and client requirements and large retail base on the liability side. IDBI upholds the highest standards of corporate governance in its operations. The responsibility for maintaining these high standards of governance lies with its Board of Directors. Two Committees of the Board viz. the Executive Committee and the Audit Committee are adequately empowered to monitor implementation of good corporate governance practices and making necessary disclosures within the framework of legal provisions and banking conventions. Industrial Investment Bank of India Ltd. The industrial investment bank of India is one of oldest banks in India. The Industrial Reconstruction Corporation of India Ltd., set up in 1971 for rehabilitation of sick industrial companies, was reconstituted as Industrial Reconstruction Bank of India in 1985 under the IRBI Act, 1984. With a view to
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converting the institution into a full-fledged development financial institution, IRBI was incorporated under the Companies Act, 1956, as Industrial Investment Bank of India Ltd. (IIBI) in March 1997. IIBI offers a wide range of products and services, including term loan assistance for project finance, short duration non-project asset-backed financing, working capital/ other short-term loans to companies, equity subscription, asset credit, equipment finance as also investments in capital market and money market instruments. In view of certain structural and financial problems adversely impacting its long-term viability, IIBI submitted a financial restructuring proposal to the Government of India on July 25, 2003. IIBI has since received certain directives from the Government of India, which, inter alias, include restricting fresh lending to existing clients approved cases rated corporates, restrictions on fresh borrowings, an action plan to reduce the overhead expenditure, disposal of fixed assets and a time-bound plan for asset recovery/reconstruction. The Government of India had also given its approval for the merger of IIBI with IDBI and the latter had already started the due diligence process. But on December 17 2005 the IDBI rejected any such merger. Acquisition of United Western Bank In 2006, IDBI Bank acquired United Western Bank in a rescue. Annasaheb Chirmule, who worked for the cause of Swadeshi movement, founded Satara Swadeshi Commercial Bank in 1907, and some three decades later founded United Western Bank. The bank was incorporated in 1936, and commenced operations the next year, with its head office in Satara, in Maharashtra State. It became a Scheduled Bank in 1951. In 1956 it merged with Union Bank of Kolhapur, and in 1961 with Satara Swadeshi Commercial Bank. At the time of the merger with IDBI, United Western had some 230 branches spread over 47 districts in 9 states, controlled by five Zonal Offices at Mumbai, Pune, Kolhapur, Jalgaon and Nagpur.
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About company ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year ended March 31, 2010. The Bank has a network of 2,009 branches and about 5,219 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United
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States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). ICICI Group Companies ICICI Group ICICI Prudential Life Insurance Company ICICI Securities ICICI Lombard General Insurance Company ICICI Prudential AMC & Trust ICICI Venture ICICI Direct ICICI Foundation Disha Financial Counselling PRODUCTS PROVIDED BY ICICI BANK Savings account :
o o o o o o
Balance Enquiry Statement of account Cheque status enquiry Stop Payment Cheque book request Dial-a- draft/payorder ATM lost card reporting Request for a new ATM PIN
Fixed Deposits:
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o o o
Opening a Fixed Deposit Checking Fixed Deposit details Request for TDS statement
Credit Cards:
o o o o o
Balance and account related inquiries Statement of account Dial a draft/payorder Lost/Replacement card ATM pin re-issue Payment instructions (maybe through a letter to the Call Centre)
Others:
o o o
Standing Instructions Complaints and suggestions Inquire about any ICICI retail product
Cards Credit Cards Add value to your shopping and shop smart. Debit Cards Access your bank account anywhere, anytime. Benefits
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Wide Acceptability: Enjoy purchases across 3,50,000 shopping outlets in India and around 24 million outlets worldwide.
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Online Shopping: Buy anything online, and experience the convenience of your Debit Card. Reserve train, airline and movie tickets or buy gifts for loved ones. You can even pay your electricity, mobile phone and
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other bills online with the added security of Internet Banking user ID and password. Prepaid Cards Ensure safe and convenient payments. Commercial Cards ICICI Bank’s Commercial Cards offer simple and convenient solutions to meet the payment requirements of your organisation. ICICI Bank Commercial Cards have been designed as payment solutions for large & mid-sized organizations. A widely accepted concept internationally, Commercial Cards help to better streamline payment processes & thus increase efficiencies.
Corporate & Gold Card
Platinum
Purchase Card
DriveTrack Card
The ICICI Bank Corporate Card Programme delivers greater control,
ICICI Bank's Corporate Purchasing Solution is designed to address the has been designed to
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DriveTrack Fleet Card: ICICI Bank and HPCL jointly offer a fleet management
enhanced efficiencies and higher savings to your company. The programme combines the power of a corporate card with online reporting capabilities and dedicated account management.
address the nonstrategic, low value purchases that consume 80% of a company's transaction volume. Through a Purchase Card, all such purchases can be
programme DriveTrack for fleet owners.
About HDFC BANK The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. Accounts & Deposits
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SAVING ACCOUNT These accounts are primarily meant to inculcate a sense of saving for the future, accumulating funds over a period of time. Whatever your occupation, we are confident that you will find the perfect banking solution. Open an account in your name or register for one jointly with a family member today. Regular Salary Regular Advantage Savings Plus Classic Premium SavingsMax Payroll No Frills Kids Senior Citizens Retail Trust Defence
Kisan No Frills Savings Kisan Club Savings
Pension Savings Reimbursement
Family Savings
Regular saving account An easy-to-operate savings account that allows you to issue cheques, draw Demand Drafts and withdraw cash. Check up on your balances from the comfort of your home or office through NetBanking, PhoneBanking and MobileBanking. Need money urgently? Withdraw cash from any of the 4,232 ATM centres spread across the country.
Features & Benefits Wide network of branches and over thousand ATMs to meet all your banking needs no matter where you are located. Bank conveniently with facilities like NetBanking and MobileBanking- check your account balance, pay utility bills or stop cheque payment, through SMS. Never overspend- Shop using your International Debit Card that reflects the actual balance in your savings account. Personalised cheques with your name printed on each cheque leaf for enhanced security. Take advantage of BillPay, an instant solution to all your frequent utility bill payments. Instruct for payment over the phone or through the Internet. Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saver facility on your account.
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Free cash withdrawals on any other Bank's ATM* Free Payable-at-Par chequebook, without any usage charges upto a limit of Rs.50,000/- per month. Free InstaAlerts for all account holders for lifetime of the account. Free Passbook facility available at home branch for account holders (individuals). Free Email Statement facility. Saving plus account Introducing the best banking option for you with HDFC Bank Savings Plus Account. Now you can get access to some of the finest banking facilities with HDFC Bank's Savings Plus Account. All you have to do is maintain an Average Quarterly Balance of Rs. 10,000/- and experience the benefits as mentioned below: Features & Benefits Wide network of branches and over thousand ATMs to meet all your banking needs no matter where you are located. Free cash withdrawals on any other Bank's ATM*. Free International Debit Card for all account holders for life time of the account. Free Payable-at-Par (PAP) chequebook, without any usage charges upto a limit of Rs. 50,000 per month. Above Rs. 50,000, charge of Rs.2.90/- per Rs. 1,000/- on the full amount. Free Demand Drafts on HDFC Bank locations, upto a limit of 25,000/- per day. Free BillPay & InstaAlerts for all account holders for lifetime of the account Free Electronic Funds Transfer facility, NetBanking, PhoneBanking & MobileBanking Special relationship discount on purchase of Gold Bars 25%-off on the Locker rental for the 1st year (only). Intercity Banking / Multi-city Banking. Free Passbook facility available at home branch for account holders (individuals). Free Email Statement facility.
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PRODUCTS OF HDFC BANK
Accounts & Deposits Savings Accounts Regular Savings Account Savings Plus Account SavingsMax Account Senior Citizens Account No Frills Account Institutional Account Salary Accounts Payroll Classic Regular Premium Defence No Frills Salary Account Reimbursement Current Account Kid's Advantage Account Pension Saving Account Bank Savings Loans Personal Loans SmartDraft Home Loans Two Wheeler Loans New Car Loans Used Car Loans Gold Loan Educational Loan Loan Against Securities Loan Against Property Loans Against Receivables Retail Agri Loans Tractor Loans Commercial Finance Vehicle Rental Investments & Insurance Wealth Advisory Services Mutual Funds Tax Planning Insurance General & Health Insurance Bonds Knowledge Centre Equities & Derivatives Mudra Gold Bar Mudra Silver Bar
Health Care Finance
Working Capital Finance Construction Equipment Finance Warehouse Loans Receipt Forex Services Products Services Cards Trade Services Forex Services Branch Locator RBI Guidelines Forex Limits &
Family Savings Group Kisan No Frills Savings Kisan Club Savings Current Accounts Plus Current Account Trade Current Account Premium Account Current
Regular Current Account RFC - Domestic Account Flexi Current Account Apex Current Account 32
Max Current Account Merchant Advantage Current Account Merchant Advantage Plus Current Account Fixed Deposits Regular Fixed Deposit 5 Year Tax Saving Fixed Deposite Super Saver Facility Sweep-in Facility Recurring Deposit Demat Account Safe Deposit Lockers
Credit Cards Silver Credit Card Value Plus Credit Card Gold Credit Card Titanium Credit Card Woman's Gold Credit Card Platinum Card Plus Credit Credit Payment Services NetSafe Merchant Services Prepaid Refill ngpay BillPay Visa BillPay PayNow Register Pay InstaPay DirectPay mChek Visa Money Transfer RTGS Funds Transfer e-Monies Electronic Funds Transfer Excise & Service Tax Payment Online Payment of Direct Tax Online payment DVAT of &
Visa Signature Card
World MasterCard Credit Card Corporate Credit Card Platinum
Corporate Credit Card HDFC Bank Imperia Preferred / Classic Banking Imperia Banking Premium / Business Platinum Credit Card Business Card Gold Credit
Purchase Card Distributor Card Debit Cards EasyShop International Debit Card EasyShop Gold Debit Card EasyShop International Business Debit Card EasyShop Woman's Advantage Debit Card EasyShop Debit Card Titanium
Preferred Banking
EasyShop NRO Debit Card Prepaid Cards ForexPlus Card GiftPlus Card Classic Banking FoodPlus Card MoneyPlus Card 33
Online payment of Gujarat VAT Religious Offerings Donate to
ForexPlus Chip Card
Charity
Access Bank
Your
NetBanking Credit Online OneView InstaAlerts MobileBanking ATM PhoneBanking Email Cards
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CHAPTER NO-03
OBJECTIVE OF THE STUDY
OBJECTIVE OF THE STUDY 1. To know about Consumer Behavior in Public & Private sector Bank. 2. To compare the services of Private & Public sector bank.
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3. To determine that how the Banks attract to customers for policies. 4. To study about the banking services of SBI, IDBI, ICICI & HDFC Bank.
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CHAPTER NO-05
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. It my be understood as a science of studying how research is done systematically & scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them.
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Researcher also need to understand the assumptions underlying various techniques they need to know the criteria by which they can decide that certain techniques & procedures will be applicable to the certain problems and other will not. RESEARCH PROCESS Research process consist of action or steps necessary for effective carry out research and the desired of this steps1. Formulating the Research problem- The best way of understanding the problem is to discuss it with ones own colleagues or with those having some expertise in the matter. 2. Extensive Literature Survey- After formulating the problem a brief summery of its should be written down. At this function research should undertake extensive literature survey concerned with the problem. 3. Development of working hypothesis- After extensive literature survey, researcher should state in clear terms the working hypothesis. 4. Preparing the research design- The research problem has bee formulated in clear cut terms. The researcher will be required to prepare a research design.
Basically there are three types of research design. Exploratory research design. Descriptive research design.
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5.
Hypothesis testing design. Determining the sample designs- All the items under consideration in any field of inquiry constitute a universe or population. There are two types of sampling method are used to design sample.
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Random sampling Non random sampling The success of the analysis mostly depends on the methodology on which it is carried out. The appropriate methodology will improve the validity of the findings. ? Data Collection: The study is based on the data collected through primary and secondary sources. ? Primary Data: An interview schedule and Questionnaire was designed to collect primary data from various customer of Public & Private sector bank. ? Secondary Data: Secondary data was collected from journals, magazines, web sites and from other relevant publications.
? Sampling Design: The sampling design mainly consists of the sample taken for the study along with the sample size, sample frame and sampling method.
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? Sample Size: From the universe, sample sizes of 50 customers were selected for the purpose of the study. ? Sample Frame: The customers were selected on a random basis from which the respondents were selected based on convenience. ? Sampling Method: Convenience sampling was used, based on the willingness and availability of the respondents. The study was conducted on consumers with different type of business.
TOOLS AND TECHNIQUES
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As no study could be successfully completed without proper tools and techniques, same with my project. For the better presentation and right explanation I used tools of statistics and computer very frequently. And I am very thankful to all those tools for helping me a lot. Basic tools which I used for project from statistics are- Pie charts - Tables bar charts and pie charts are really useful tools for every research to show the result in a well clear, ease and simple way. Because I used bar charts and pie charts in project for showing data in a systematic way, so it need not necessary for any observer to read all the theoretical detail, simple on seeing the charts any body could know that what is being said. Technological Tools Ms-Word Ms-excel Internet Above application software of Microsoft helped me a lot in making project more interactive and productive. Microsoft-Excel had a great role in my project, it created for me a situation of “you sit and get”. I provided it simply all the detail of data and in return it given me all the relevant information.. Microsoft-Access did the performance of my personal assistant who organizes my all the details of document without disturbing them even a single time in all the project duration. And in last Microsoft-Word did help me for the documentation of the project in a presentable form.
SCOPE OF THE STUDY
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In Indian Banking sector includes many players, but out of these players I have selected only the Four Banks SBI , IDBI & ICICI, HDFC bank .The study gave me a chance to carry Comparative analysis of consumer behavior along with its various tools used in analysis which helps to understand the basics of Consumer Behavior in Public & Private sector Bank and provides the tools that help to decide which companies make worthwhile investments. This type of analysis examines key products and policies of Banks. .The scope of project extends to the study of 4 key players of Indian Banking sector . The study was mainly based on the Consumer Behavior in Public & Private sector Bank.
LIMITATIONS Despite the possible efforts in concluding the research, they were some unavoidable situations, which limited the scope of the project. 1. The study was restricted to Bhopal. 2. Time was the biggest constraint as all questionnaires were to be filled in person to actual views, but all efforts were made to get information relevant to the research. 3. There may be some disepecies in views as some, people might give false information in questionnaire, as they might not be in filling the form. 4. The sample size of 50 is small so there may be difference in the reality and the findings.
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CHAPTER NO-06
DATA ANALYSIS & INTERPRETATION
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44
CHAPTER NO-07
FINDING
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CHAPTER NO-08
SUGGESTION
SUGGESTION
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1. Company should advertisement through various things i.e advertisement through print media electronic media and distribution network. 2. As we have seen in the study persons are must affected by price & quality factor. The company should concentrate over the price factor of the program so that new customer could be attracted to wards the program although quality factor of the program is satisfactory. 3. The company must conducted the satisfaction survey time to time so
that company could know the satisfaction level of the consumer. It will be more beneficial to company in making new strategies & policies. 4. Most of the person, which participated in the survey have said that the program should be divided in to small packages. So that any one could buy it easily. 5. The company price should be kept low in comparison to competitors product price so that company can earn more profit by selling large volume. 6. The company’s awareness is low, the company should be more
concentrate to increase the awareness of the company. The company can use many marketing total to perform this work. 7. The company should be conducted the demo of program complaint, policies & suggestion. It can improved it market share and consumer satisfaction.
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CHAPTER NO-09
CONCLUSION
CONCLUSION
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The bank needs to make people aware about there products and the basic benefits they can derive out of it. Aggressive Marketing is the key to increasing the market share in this area, since the market has a lot of potential both in terms of untapped market Almost Both the Banks offer similar features and facilities with their Products. There are certain reasons for existing customers of credit card of any Bank to shift to another Bank.
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CHAPTER NO-10
BIBLIOGRAPHY
BIBLIOGRAPHY
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BOOKS Marketing Management Philip Kotler, The Millennium Edition, Prentice Hall Of India Private Limited, New Delhi. A. Aaker, David. Strategic Market management. New York: John Wiley & Sons,2001, pp.154-162. Levy, Michael. A. Weitz .Barton. Retailing Management. New York: McGrew-Hill,2004,pp.6-8, 627 Palmer, Adrian. Introduction to Marketing. India: Oxford University Press,2004, pp.350-351,363. 1. MAGAZINES REFFERED: • INDIA TODAY • BUSINESS TIMES 2. WEBSITES REFFERED:
• www.icicibank.com • www.sbi.com • www.indianinfoline.com • www.creditcardsbasic.com 3. SEARCH ENGINES: • www.google.co.in
•
www.wikipedia.org.in
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CHAPTER NO-11
ANNEXURE
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QUESTIONNAIRE
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doc_524835180.doc
Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Research has shown that consumer behaviour is difficult to predict, even for experts in the field.
TABLE OF CONTENT S.NO 01 02 03 04 05 06 07 08 09 10 11 CONTENTS INTRODUCTION COMPANY PROFILE ABOUT CREDIT CARD OBJECTIVE OF THE STUDY RESEARCH METHODOLOGY DATA ANALYSIS & INTERPRETATION FINDINGS SUGGESTION CONCLUSION BIBLIOGRAPHY ANNEXURE PAGE NO. 03 07-19 20-45 46 49-54 54-67 68 71 72 74 76
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CHAPTER NO-01
INTRODUCTION
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CONSUMER BEHAVIOUR Consumer behaviour is the study of when, why, how, and where people do or do not buy product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalisation, customisation and one-to-one marketing. Social functions can be categorized into social choice and welfare functions. Each method for vote counting is assumed as a social function but if Arrow’s possibility theorem is used for a social function, social welfare function is achieved. Some specifications of the social functions are decisiveness, neutrality, anonymity, monotonicity, unanimity, homogeneity and weak and strong Pareto optimality. No social choice function meets these requirements in an ordinal scale simultaneously. The most important characteristic of a social function is identification of the interactive effect of alternatives and creating a logical relation with the ranks. Marketing provides services in order to satisfy customers. With that in mind, the productive system is considered from its beginning at the production level, to the end of the cycle, the consumer (Kioumarsi et al., 2009).
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Belch and Belch define consumer behaviour as 'the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires'.'
Black box model ENVIRONMENTAL BUYER'S BLACK BOX FACTORS Marketing Environmental Buyer Decision Stimuli Stimuli Characteristics Process Problem recognition Economic Product Price Place Promotion Technological Political Cultural Demographic Natural Attitudes Motivation Perceptions Personality Lifestyle Knowledge Information search Alternative evaluation Purchase decision Post-purchase behaviour The black box model shows the interaction of stimuli, consumer characteristics, decision process and consumer responses. It can be distinguished between interpersonal stimuli (between people) or intrapersonal stimuli (within people). The black box model is related to the black box theory of behaviourism, where the focus is not set on the processes inside a consumer, but the relation between the stimuli and the response of the consumer. The marketing stimuli are planned and processed by the companies, whereas the environmental stimulus are given by social factors, based on the economical, political and cultural circumstances of a society. The buyers black box contains the buyer characteristics and the decision process, which determines the buyers response.
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BUYER'S RESPONSE
Product choice Brand Dealer Purchase timing Purchase amount choice choice
The black box model considers the buyers response as a result of a conscious, rational decision process, in which it is assumed that the buyer has recognized the problem. However, in reality many decisions are not made in awareness of a determined problem by the consumer. Information search Once the consumer has recognised a problem, they search for information on products and services that can solve that problem. Belch and Belch (2007) explain that consumers undertake both an internal (memory) and an external search. Sources of information include:
• • • •
Personal sources Commercial sources Public sources Personal experience
The relevant internal psychological process that is associated with information search is perception. Perception is defined as 'the process by which an individual receives, selects, organises, and interprets information to create a meaningful picture of the world' The selective perception process Stage Description - Selective exposure consumers select which promotional messages they will expose themselves to. - Selective attention consumers select which promotional messages they will pay attention to
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- Selective comprehension consumer interpret messages in line with their beliefs, attitudes, motives and experiences -Selective retention consumers remember messages that are more meaningful or important to them The implications of this process help develop an effective promotional strategy, and select which sources of information are more effective for the brand.CV Information evaluation At this time the consumer compares the brands and products that are in their evoked set. How can the marketing organization increase the likelihood that their brand is part of the consumer's evoked (consideration) set? Consumers evaluate alternatives in terms of the functional and psychological benefits that they offer. The marketing organization needs to understand what benefits consumers are seeking and therefore which attributes are most important in terms of making a decision. Purchase decision Once the alternatives have been evaluated, the consumer is ready to make a purchase decision. Sometimes purchase intention does not result in an actual purchase. The marketing organization must facilitate the consumer to act on their purchase intention. The organisation can use variety of techniques to achieve this. The provision of credit or payment terms may encourage purchase, or a sales promotion such as the opportunity to receive a premium or enter a competition may provide an incentive to buy now. The relevant internal psychological process that is associated with purchase decision is integration.Once the integration is achieved, the organisation can influence the purchase decisions much more easily.
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Postpurchase evaluation It is common for customers to experience concerns after making a purchase decision. This arises from a concept that is known as “cognitive dissonance”. The customer, having bought a product, may feel that an alternative would have been preferable. In these circumstances that customer will not repurchase immediately, but is likely to switch brands next time. To manage the post-purchase stage, it is the job of the marketing team to persuade the potential customer that the product will satisfy his or her needs. Then after having made a purchase, the customer should be encouraged that he or she has made the right decision.it is not effected by advertisement. Internal influences Consumer behaviour is influenced by: demographics, psychographics (lifestyle), personality, motivation, knowledge, attitudes, beliefs, and feelings. consumer behaviour concern with consumer need consumer actions in the direction of satisfying needs leads to his behaviour of every individuals depend on thinking External influences Consumer behaviour is influenced by: culture,sub-culture, locality, royalty, ethnicity, family, social class, reference groups, lifestyle, and market mix factors. Consumer behavior involves the psychological processes that consumers go through in recognizing needs, finding ways to solve these needs, making purchase decisions (e.g., whether or not to purchase a product and, if so, which brand and where), interpret information, make plans, and implement these plans (e.g., by engaging in comparison shopping or actually purchasing a product).
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Sources of influence on the consumer. The consumer faces numerous sources of influence.
Often, we take cultural influences for granted, but they are significant. An American will usually not bargain with a store owner. This, however, is a common practice in much of the World. Physical factors also influence our behavior. We are more likely to buy a soft drink when we are thirsty, for example, and food manufacturers have found that it is more effective to advertise their products on the radio in the late afternoon when people are getting hungry. A person’s self-image will also tend to influence what he or she will buy—an upwardly mobile manager may buy a flashy car to project an image of success. Social factors also influence what the consumers buy—often, consumers seek to imitate others whom they admire, and may buy the same
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brands. The social environment can include both the mainstream culture (e.g., Americans are more likely to have corn flakes or ham and eggs for breakfast than to have rice, which is preferred in many Asian countries) and a subculture (e.g., rap music often appeals to a segment within the population that seeks to distinguish itself from the mainstream population). Thus, sneaker manufacturers are eager to have their products worn by admired athletes. Finally, consumer behavior is influenced by learning—you try a hamburger and learn that it satisfies your hunger and tastes good, and the next time you are hungry, you may consider another hamburger. Consumer Choice and Decision Making: Problem Recognition. One model of consumer decision making involves several steps. The first one is problem recognition—you realize that something is not as it should be. Perhaps, for example, your car is getting more difficult to start and is not accelerating well. The second step is information search—what are some alternative ways of solving the problem? You might buy a new car, buy a used car, take your car in for repair, ride the bus, ride a taxi, or ride a skateboard to work. The third step involves evaluation of alternatives. A skateboard is inexpensive, but may be illsuited for long distances and for rainy days. Finally, we have the purchase stage, and sometimes a post-purchase stage (e.g., you return a product to the store because you did not find it satisfactory). In reality, people may go back and forth between the stages. For example, a person may resume alternative identification during while evaluating already known alternatives. Consumer involvement will tend to vary dramatically depending on the type of product. In general, consumer involvement will be higher for products that are very expensive (e.g., a home, a car) or are highly significant in the consumer’s life in some other way (e.g., a word processing program or acne medication). It is important to consider the consumer’s motivation for buying products. To achieve this goal, we can use the Means-End chain, wherein we consider a
9
logical progression of consequences of product use that eventually lead to desired end benefit. Thus, for example, a consumer may see that a car has a large engine, leading to fast acceleration, leading to a feeling of performance, leading to a feeling of power, which ultimately improves the consumer’s selfesteem. A handgun may aim bullets with precision, which enables the user to kill an intruder, which means that the intruder will not be able to harm the consumer’s family, which achieves the desired end-state of security. In advertising, it is important to portray the desired end-states. Focusing on the large motor will do less good than portraying a successful person driving the car.
Information search and decision making. Consumers engage in both internal and external information search. Internal search involves the consumer identifying alternatives from his or her memory. For certain low involvement products, it is very important that marketing programs achieve “top of mind” awareness. For example, few people will search the Yellow Pages for fast food restaurants; thus, the consumer must be able to retrieve one’s restaurant from memory before it will be considered. For high involvement products, consumers are more likely to use an external search. Before buying a car, for example, the consumer may ask friends’ opinions, read reviews in Consumer Reports, consult several web sites, and visit several dealerships. Thus, firms
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that make products that are selected predominantly through external search must invest in having information available to the consumer in need—e.g., through brochures, web sites, or news coverage.
A compensatory decision involves the consumer “trading off” good and bad attributes of a product. For example, a car may have a low price and good gas mileage but slow acceleration. If the price is sufficiently inexpensive and gas efficient, the consumer may then select it over a car with better acceleration that costs more and uses more gas. Occasionally, a decision will involve a noncompensatory strategy. For example, a parent may reject all soft drinks that contain artificial sweeteners. Here, other good features such as taste and low calories cannot overcome this one “non-negotiable” attribute.
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CHAPTER NO-02
COMPANY
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ABOUT US State Bank of India welcomes you to explore the world of premier bank in India. In this section, you can access detailed information on Overview of the Bank, Technology Upgradation in the Bank, Board of Directors, Financial Results and Shareholder Info. The Bank is actively involved since 1973 in non-profit activity called Community Services Banking. All our branches and administrative offices throughout the country sponsor and participate in large number of welfare activities and social causes. Our business is more than banking because we touch the lives of people anywhere in many ways. Our commitment to nation-building is complete & comprehensive. TRANSFORMATION JOURNEY IN STATE BANK OF INDIA The State Bank of India, the country’s oldest Bank and a premier in terms of balance sheet size, number of branches, market capitalization and profits is today going through a momentous phase of Change and Transformation – the two hundred year old Public sector behemoth is today stirring out of its Public Sector legacy and moving with an agility to give the Private and Foreign Banks a run for their money. The bank is entering into many new businesses with strategic tie ups – Pension Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale Merchant Acquisition, Advisory Services, structured products etc – each one of these initiatives having a huge potential for growth. The Bank is forging ahead with cutting edge technology and innovative new banking models, to expand its Rural Banking base, looking at the vast untapped
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potential in the hinterland and proposes to cover 100,000 villages in the next two years. It is also focusing at the top end of the market, on whole sale banking capabilities to provide India’s growing mid / large Corporate with a complete array of products and services. It is consolidating its global treasury operations and entering into structured products and derivative instruments. Today, the Bank is the largest provider of infrastructure debt and the largest arranger of external commercial borrowings in the country. It is the only Indian bank to feature in the Fortune 500 list. The Bank is changing outdated front and back end processes to modern customer friendly processes to help improve the total customer experience. With about 8500 of its own 10000 branches and another 5100 branches of its Associate Banks already networked, today it offers the largest banking network to the Indian customer. The Bank is also in the process of providing complete payment solution to its clientele with its over 8500 ATMs, and other electronic channels such as Internet banking, debit cards, mobile banking, etc. With four national level Apex Training Colleges and 54 learning Centres spread all over the country the Bank is continuously engaged in skill enhancement of its employees. Some of the training programes are attended by bankers from banks in other countries. The bank is also looking at opportunities to grow in size in India as well as Internationally. It presently has 82 foreign offices in 32 countries across the globe. It has also 7 Subsidiaries in India – SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards - forming a formidable group in the Indian Banking scenario. It is in the process of raising capital for its growth and also consolidating its various holdings. Throughout all this change, the Bank is also attempting to change old mindsets, attitudes and take all employees together on this exciting road to Transformation. In a recently concluded mass internal communication programme termed ‘Parivartan’ the Bank rolled out over 3300 two day
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workshops across the country and covered over 130,000 employees in a period of 100 days using about 400 Trainers, to drive home the message of Change and inclusiveness. The workshops fired the imagination of the employees with some other banks in India as well as other Public Sector Organizations seeking to emulate the programme. The CNN IBN, Network 18 recognized this momentous transformation journey, the State Bank of India is undertaking, and has awarded the prestigious Indian of the Year – Business, to its Chairman, Mr. O. P. Bhatt in January 2008. INVESTOR RELATIONS State Bank of India, the country’s largest commercial Bank in terms of profits, assets, deposits, branches and employees, welcomes you to its ‘Investors Relations’ Section. SBI, with its heritage dating back to the year 1806, strives to continuously provide latest and upto date information on its financial performance. It is our endeavor to walk on the path of transparency and allow complete access to all the stakeholders enabling total awareness about the Bank. The Bank communicates with the stakeholders through a variety of channels, such as through e-mail, website, conference call, one-on-one meeting, analysts’ meet and attendance at Investor Conference throughout the world. Please find below Bank’s financial results, analysis of performance and other highlights which will be of interest to Investors, Fund Managers and Analysts. SBI has always been fundamentally strong in its core business which is mirrored in its results – year after year.
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Our commitment to nation-building is complete & comprehensive. Central Board of State Bank of India (As on 13th May 2009) Sr. No. Name of Director Shri O.P. Bhatt 1. Chairman Shri S.K. Bhattacharyya 2. MD & CC&RO Shri R. Sridharan 3. MD & GE(A&S) 4. Dr. Ashok Jhunjhunwala 5. Shri Dileep C. Choksi 6. Shri S. Venkatachalam 7. Shri. D. Sundaram 8. Dr. Deva Nand Balodhi 9. Prof. Mohd. Salahuddin Ansari 10. Dr.(Mrs.) Vasantha Bharucha 11. Dr. Rajiv Kumar 12. Shri Ashok Chawla 13. Smt. Shyamala Gopinath Sec. of SBI Act, 1955 19(a) 19(b) 19(b) 19(c) 19(c) 19(c) 19(c) 19(d) 19(d) 19(d) 19(d) 19(e) 19(f)
PERSONAL BANKING Welcome to SBI's Retail Banking State Bank of India offers a wide range of services in the Personal Banking Segment which are indexed here.
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Our products are designed with flexibility to suit your personal requirements. Enjoy 24 hour facility through our ATMs - growing speedily it has crossed the 5000 mark Watch this space for more details. SBI Term Deposits SBI Loan For Pensioners
SBI Recurring Deposits Loan Against Mortgage Of Property SBI Housing Loan SBI Car Loan SBI Educational Loan SBI Personal Loan Loan Against Shares & Debentures Rent Plus Scheme Medi-Plus Scheme Rates Of Interest
Experience a whole new world of banking at our newly opened Personal Banking Branches (PBBs)- often dubbed boutique branches by others. Customer friendly knowledgeable staff will cater to your financial requirements with speed and efficiency. Do visit one and find out for yourself. for addresses of our PBBs.
DEPOSIT SCHEMES Whatever your needs - an investment of your surplus funds or to create a fund for your childrens' education and marriage. You will find a product from SBI that suits your requirement, delivered at a branch close to you. Open an account with any of our branches, all of them are fully computerised, and realise the advantage of our vast network. Place funds in Multi Option Deposit Scheme, a term deposit which is not fixed at all and comes with a
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unique break-up facility which provides you full liquidity as well as benefits of higher rates of returns, through your savings bank account. Alternately, keep that deposit intact by availing an overdraft facility, to meet your occasional temporary funds requirements. Want to build up savings slowly? Discover our Recurring Deposit Account. You can save a little every month to build up the desired corpus to meet your future requirement of funds. Our products are designed with flexibility to suit your personal requirements. Enjoy 24 hour banking facility through our Internet Banking/ widest network of ATMs. Please watch this space for more details. Current Account Savings Bank Account Term Deposits Special Term Deposits Multi Scheme Scheme Option Savings Plus Account Basic Banking 'No frills Account' Recurring Deposit Account PREMIUM SAVINGS ACCOUNT
Deposit Rate of Interest on Domestic Term Deposits SBI Tax Savings Scheme, 2006
The Industrial Development Bank of India Limited commonly known by its acronym IDBI is one of India's leading public sector banks and 4th largest Bank in overall ratings. RBI categorised IDBI as an "other public sector bank". It was established in 1964 by an Act of Parliament to provide credit and other facilities for the development of the fledgling Indian industry. It is currently 10th largest development bank in the world in terms of reach with 1228 ATMs, 720 branches and 486 centers. Some of the institutions built by IDBI are the
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National Stock Exchange of India (NSE), the National Securities Depository Services Ltd (NSDL), the Stock Holding Corporation of India (SHCIL), the Credit Analysis & Research Ltd, the Export-Import Bank of India(Exim Bank), the Small Industries Development bank of India(SIDBI), the Entrepreneurship Development Institute of India, and IDBI BANK, which today is owned by the Indian Government, though for a brief period it was a private scheduled bank. Recent Development To meet emerging challenges and to keep up with reforms in financial sector, IDBI has taken steps to reshape its role from a development finance institution to a commercial institution. With the Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003, IDBI attained the status of a limited company viz. "Industrial Development Bank of India Limited" (IDBIL). Subsequently, the Reserve Bank of India (RBI) issued the requisite notification on September 30, 2004 incorporating IDBI as a 'scheduled bank' under the RBI Act, 1934. Consequently, IDBI, formally entered the portals of banking business as IDBIL from October 1, 2004. The commercial banking arm, IDBI BANK, was merged into IDBI. In March 2008, IDBI Bank entered into a joint venture with Federal Bank and Fortis Insurance International to form IDBI Fortis Life Insurance, of which IDBI Bank owns 48 percent. The company ended the year with over 300 Cr in premiums as on 31 March 2009. Industrial Development Bank of India (IDBI) The Industrial Development Bank of India (IDBI) was established on July 1, 1964 under an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India. In 16 February 1976, the ownership of IDBI was transferred to the Government of India and it was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and
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developing industry in the country. Although Government shareholding in the Bank came down below 100% following IDBI’s public issue in July 1995, the former continues to be the major shareholder (current shareholding: 52.3%). During the four decades of its existence, IDBI has been instrumental not only in establishing a well-developed, diversified and efficient industrial and institutional structure but also adding a qualitative dimension to the process of industrial development in the country. IDBI has played a pioneering role in fulfilling its mission of promoting industrial growth through financing of medium and long-term projects, in consonance with national plans and priorities. Over the years, IDBI has enlarged its basket of products and services, covering almost the entire spectrum of industrial activities, including manufacturing and services. IDBI provides financial assistance, both in rupee and foreign currencies, for green-field projects as also for expansion, modernisation and diversification purposes. In the wake of financial sector reforms unveiled by the government since 1992, IDBI evolved an array of fund and fee-based services with a view to providing an integrated solution to meet the entire demand of financial and corporate advisory requirements of its clients. IDBI also provides indirect financial assistance by way of refinancing of loans extended by State-level financial institutions and banks and by way of rediscounting of bills of exchange arising out of sale of indigenous machinery on deferred payment terms. IDBI has played a pioneering role, particularly in the pre-reform era (1964– 91),in catalyzing broad based industrial development in the country in keeping with its Government-ordained ‘development banking’ charter. In pursuance of this mandate, IDBI’s activities transcended the confines of pure long-term lending to industry and encompassed, among others, balanced industrial growth through development of backward areas, modernisation of specific industries, employment generation, entrepreneurship development along with support
20
services for creating a deep and vibrant domestic capital market, including development of apposite institutional framework. Narasimam committee recommends that IDBI should give up its direct
financing functions and concentrate only in promotional and refinancing role. But this recommendation was rejected by the government. Latter RBI constituted a committee under the chairmanship of S.H.Khan to examine the concept of development financing in the changed global challenges. This committee is the first to recommend the concept of universal banking. The committee wanted to the development financial institution to diversify its activity. It recommended to harmonise the role of development financing and banking activities by getting away from the conventional distinction between commercial banking and developmental banking. In September 2003, IDBI diversified its business domain further by acquiring the entire shareholding of Tata Finance Limited in Tata Home finance Ltd., signaling IDBI’s foray into the retail finance sector. The fully-owned housing finance subsidiary has since been renamed ‘IDBI Home finance Limited’. In view of the signal changes in the operating environment, following initiation of reforms since the early nineties, Government of India has decided to transform IDBI into a commercial bank without eschewing its secular development finance obligations. The migration to the new business model of commercial banking, with its gateway to low-cost current, savings bank deposits, would help overcome most of the limitations of the current business model of development finance while simultaneously enabling it to diversify its client/ asset base. Towards this end, the IDB (Transfer of Undertaking and Repeal) Act 2003 was passed by Parliament in December 2003. The Act provides for repeal of IDBI Act, corporatisation of IDBI (with majority Government holding; current share: 58.47%) and transformation into a commercial bank. The provisions of the Act have come into force from July 2, 2004 in terms of a Government Notification to this effect. The Notification facilitated formation,
21
incorporation and registration of Industrial Development Bank of India Ltd. as a company under the Companies Act, 1956 and a deemed Banking Company under the Banking Regulation Act 1949 and helped in obtaining requisite regulatory and statutory clearances, including those from RBI. IDBI would commence banking business in accordance with the provisions of the new Act in addition to the business being transacted under IDBI Act, 1964 from October 1, 2004, the ‘Appointed Date’ notified by the Central Government. IDBI has firmed up the infrastructure, technology platform and reorientation of its human capital to achieve a smooth transition. IDBI Bank, with which the parent IDBI was merged, was a vibrant new generation Bank. The Pvt Bank was the fastest growing banking company in India. The bank was pioneer in adapting to policy of first mover in tier 2 cities. The Bank also had the least NPA and the highest productivity per employee in the banking industry. On July 29, 2004, the Board of Directors of IDBI and IDBI Bank accorded in principle approval to the merger of IDBI Bank with the Industrial Development Bank of India Ltd. to be formed incorporated under the Companies Act, 1956 pursuant to the IDB (Transfer of Undertaking and Repeal) Act, 2003 (53 of 2003), subject to the approval of shareholders and other regulatory and statutory approvals. A mutually gainful proposition with positive implications for all stakeholders and clients, the merger process is expected to be completed during the current financial year ending March 31, 2005. The immediate fall out of the merger of IDBI and idbi bank was the exit of employees of idbi bank. The cultures in the two organizations have taken its toll. The IDBI BANK now is in a growing fold. With its retail banking arm expanding further after the merger of United western Bank. IDBI would continue to provide the extant products and services as part of its development finance role even after its conversion into a banking company. In
22
addition, the new entity would also provide an array of wholesale and retail banking products, designed to suit the specific needs cash flow requirements of corporates and individuals. In particular, IDBI would leverage the strong corporate relationships built up over the years to offer customised and total financial solutions for all corporate business needs, single-window appraisal for term loans and working capital finance, strategic advisory and “hand-holding” support at the implementation phase of projects, among others. IDBI’s transformation into a commercial bank would provide a gateway to lowcost deposits like Current and Savings Bank Deposits. This would have a positive impact on the Bank’s overall cost of funds and facilitate lending at more competitive rates to its clients. The new entity would offer various retail products, leveraging upon its existing relationship with retail investors under its existing Suvidha Flexi-bond schemes. In the emerging scenario, the new IDBI hopes to realize its mission of positioning itself as a one stop super-shop and most preferred brand for providing total financial and banking solutions to corporates and individuals, capitalising on its intimate knowledge of the Indian industry and client requirements and large retail base on the liability side. IDBI upholds the highest standards of corporate governance in its operations. The responsibility for maintaining these high standards of governance lies with its Board of Directors. Two Committees of the Board viz. the Executive Committee and the Audit Committee are adequately empowered to monitor implementation of good corporate governance practices and making necessary disclosures within the framework of legal provisions and banking conventions. Industrial Investment Bank of India Ltd. The industrial investment bank of India is one of oldest banks in India. The Industrial Reconstruction Corporation of India Ltd., set up in 1971 for rehabilitation of sick industrial companies, was reconstituted as Industrial Reconstruction Bank of India in 1985 under the IRBI Act, 1984. With a view to
23
converting the institution into a full-fledged development financial institution, IRBI was incorporated under the Companies Act, 1956, as Industrial Investment Bank of India Ltd. (IIBI) in March 1997. IIBI offers a wide range of products and services, including term loan assistance for project finance, short duration non-project asset-backed financing, working capital/ other short-term loans to companies, equity subscription, asset credit, equipment finance as also investments in capital market and money market instruments. In view of certain structural and financial problems adversely impacting its long-term viability, IIBI submitted a financial restructuring proposal to the Government of India on July 25, 2003. IIBI has since received certain directives from the Government of India, which, inter alias, include restricting fresh lending to existing clients approved cases rated corporates, restrictions on fresh borrowings, an action plan to reduce the overhead expenditure, disposal of fixed assets and a time-bound plan for asset recovery/reconstruction. The Government of India had also given its approval for the merger of IIBI with IDBI and the latter had already started the due diligence process. But on December 17 2005 the IDBI rejected any such merger. Acquisition of United Western Bank In 2006, IDBI Bank acquired United Western Bank in a rescue. Annasaheb Chirmule, who worked for the cause of Swadeshi movement, founded Satara Swadeshi Commercial Bank in 1907, and some three decades later founded United Western Bank. The bank was incorporated in 1936, and commenced operations the next year, with its head office in Satara, in Maharashtra State. It became a Scheduled Bank in 1951. In 1956 it merged with Union Bank of Kolhapur, and in 1961 with Satara Swadeshi Commercial Bank. At the time of the merger with IDBI, United Western had some 230 branches spread over 47 districts in 9 states, controlled by five Zonal Offices at Mumbai, Pune, Kolhapur, Jalgaon and Nagpur.
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About company ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year ended March 31, 2010. The Bank has a network of 2,009 branches and about 5,219 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United
25
States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). ICICI Group Companies ICICI Group ICICI Prudential Life Insurance Company ICICI Securities ICICI Lombard General Insurance Company ICICI Prudential AMC & Trust ICICI Venture ICICI Direct ICICI Foundation Disha Financial Counselling PRODUCTS PROVIDED BY ICICI BANK Savings account :
o o o o o o
Balance Enquiry Statement of account Cheque status enquiry Stop Payment Cheque book request Dial-a- draft/payorder ATM lost card reporting Request for a new ATM PIN
Fixed Deposits:
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o o o
Opening a Fixed Deposit Checking Fixed Deposit details Request for TDS statement
Credit Cards:
o o o o o
Balance and account related inquiries Statement of account Dial a draft/payorder Lost/Replacement card ATM pin re-issue Payment instructions (maybe through a letter to the Call Centre)
Others:
o o o
Standing Instructions Complaints and suggestions Inquire about any ICICI retail product
Cards Credit Cards Add value to your shopping and shop smart. Debit Cards Access your bank account anywhere, anytime. Benefits
•
Wide Acceptability: Enjoy purchases across 3,50,000 shopping outlets in India and around 24 million outlets worldwide.
•
Online Shopping: Buy anything online, and experience the convenience of your Debit Card. Reserve train, airline and movie tickets or buy gifts for loved ones. You can even pay your electricity, mobile phone and
27
other bills online with the added security of Internet Banking user ID and password. Prepaid Cards Ensure safe and convenient payments. Commercial Cards ICICI Bank’s Commercial Cards offer simple and convenient solutions to meet the payment requirements of your organisation. ICICI Bank Commercial Cards have been designed as payment solutions for large & mid-sized organizations. A widely accepted concept internationally, Commercial Cards help to better streamline payment processes & thus increase efficiencies.
Corporate & Gold Card
Platinum
Purchase Card
DriveTrack Card
The ICICI Bank Corporate Card Programme delivers greater control,
ICICI Bank's Corporate Purchasing Solution is designed to address the has been designed to
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DriveTrack Fleet Card: ICICI Bank and HPCL jointly offer a fleet management
enhanced efficiencies and higher savings to your company. The programme combines the power of a corporate card with online reporting capabilities and dedicated account management.
address the nonstrategic, low value purchases that consume 80% of a company's transaction volume. Through a Purchase Card, all such purchases can be
programme DriveTrack for fleet owners.
About HDFC BANK The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. Accounts & Deposits
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SAVING ACCOUNT These accounts are primarily meant to inculcate a sense of saving for the future, accumulating funds over a period of time. Whatever your occupation, we are confident that you will find the perfect banking solution. Open an account in your name or register for one jointly with a family member today. Regular Salary Regular Advantage Savings Plus Classic Premium SavingsMax Payroll No Frills Kids Senior Citizens Retail Trust Defence
Kisan No Frills Savings Kisan Club Savings
Pension Savings Reimbursement
Family Savings
Regular saving account An easy-to-operate savings account that allows you to issue cheques, draw Demand Drafts and withdraw cash. Check up on your balances from the comfort of your home or office through NetBanking, PhoneBanking and MobileBanking. Need money urgently? Withdraw cash from any of the 4,232 ATM centres spread across the country.
Features & Benefits Wide network of branches and over thousand ATMs to meet all your banking needs no matter where you are located. Bank conveniently with facilities like NetBanking and MobileBanking- check your account balance, pay utility bills or stop cheque payment, through SMS. Never overspend- Shop using your International Debit Card that reflects the actual balance in your savings account. Personalised cheques with your name printed on each cheque leaf for enhanced security. Take advantage of BillPay, an instant solution to all your frequent utility bill payments. Instruct for payment over the phone or through the Internet. Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saver facility on your account.
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Free cash withdrawals on any other Bank's ATM* Free Payable-at-Par chequebook, without any usage charges upto a limit of Rs.50,000/- per month. Free InstaAlerts for all account holders for lifetime of the account. Free Passbook facility available at home branch for account holders (individuals). Free Email Statement facility. Saving plus account Introducing the best banking option for you with HDFC Bank Savings Plus Account. Now you can get access to some of the finest banking facilities with HDFC Bank's Savings Plus Account. All you have to do is maintain an Average Quarterly Balance of Rs. 10,000/- and experience the benefits as mentioned below: Features & Benefits Wide network of branches and over thousand ATMs to meet all your banking needs no matter where you are located. Free cash withdrawals on any other Bank's ATM*. Free International Debit Card for all account holders for life time of the account. Free Payable-at-Par (PAP) chequebook, without any usage charges upto a limit of Rs. 50,000 per month. Above Rs. 50,000, charge of Rs.2.90/- per Rs. 1,000/- on the full amount. Free Demand Drafts on HDFC Bank locations, upto a limit of 25,000/- per day. Free BillPay & InstaAlerts for all account holders for lifetime of the account Free Electronic Funds Transfer facility, NetBanking, PhoneBanking & MobileBanking Special relationship discount on purchase of Gold Bars 25%-off on the Locker rental for the 1st year (only). Intercity Banking / Multi-city Banking. Free Passbook facility available at home branch for account holders (individuals). Free Email Statement facility.
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PRODUCTS OF HDFC BANK
Accounts & Deposits Savings Accounts Regular Savings Account Savings Plus Account SavingsMax Account Senior Citizens Account No Frills Account Institutional Account Salary Accounts Payroll Classic Regular Premium Defence No Frills Salary Account Reimbursement Current Account Kid's Advantage Account Pension Saving Account Bank Savings Loans Personal Loans SmartDraft Home Loans Two Wheeler Loans New Car Loans Used Car Loans Gold Loan Educational Loan Loan Against Securities Loan Against Property Loans Against Receivables Retail Agri Loans Tractor Loans Commercial Finance Vehicle Rental Investments & Insurance Wealth Advisory Services Mutual Funds Tax Planning Insurance General & Health Insurance Bonds Knowledge Centre Equities & Derivatives Mudra Gold Bar Mudra Silver Bar
Health Care Finance
Working Capital Finance Construction Equipment Finance Warehouse Loans Receipt Forex Services Products Services Cards Trade Services Forex Services Branch Locator RBI Guidelines Forex Limits &
Family Savings Group Kisan No Frills Savings Kisan Club Savings Current Accounts Plus Current Account Trade Current Account Premium Account Current
Regular Current Account RFC - Domestic Account Flexi Current Account Apex Current Account 32
Max Current Account Merchant Advantage Current Account Merchant Advantage Plus Current Account Fixed Deposits Regular Fixed Deposit 5 Year Tax Saving Fixed Deposite Super Saver Facility Sweep-in Facility Recurring Deposit Demat Account Safe Deposit Lockers
Credit Cards Silver Credit Card Value Plus Credit Card Gold Credit Card Titanium Credit Card Woman's Gold Credit Card Platinum Card Plus Credit Credit Payment Services NetSafe Merchant Services Prepaid Refill ngpay BillPay Visa BillPay PayNow Register Pay InstaPay DirectPay mChek Visa Money Transfer RTGS Funds Transfer e-Monies Electronic Funds Transfer Excise & Service Tax Payment Online Payment of Direct Tax Online payment DVAT of &
Visa Signature Card
World MasterCard Credit Card Corporate Credit Card Platinum
Corporate Credit Card HDFC Bank Imperia Preferred / Classic Banking Imperia Banking Premium / Business Platinum Credit Card Business Card Gold Credit
Purchase Card Distributor Card Debit Cards EasyShop International Debit Card EasyShop Gold Debit Card EasyShop International Business Debit Card EasyShop Woman's Advantage Debit Card EasyShop Debit Card Titanium
Preferred Banking
EasyShop NRO Debit Card Prepaid Cards ForexPlus Card GiftPlus Card Classic Banking FoodPlus Card MoneyPlus Card 33
Online payment of Gujarat VAT Religious Offerings Donate to
ForexPlus Chip Card
Charity
Access Bank
Your
NetBanking Credit Online OneView InstaAlerts MobileBanking ATM PhoneBanking Email Cards
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CHAPTER NO-03
OBJECTIVE OF THE STUDY
OBJECTIVE OF THE STUDY 1. To know about Consumer Behavior in Public & Private sector Bank. 2. To compare the services of Private & Public sector bank.
35
3. To determine that how the Banks attract to customers for policies. 4. To study about the banking services of SBI, IDBI, ICICI & HDFC Bank.
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CHAPTER NO-05
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. It my be understood as a science of studying how research is done systematically & scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them.
37
Researcher also need to understand the assumptions underlying various techniques they need to know the criteria by which they can decide that certain techniques & procedures will be applicable to the certain problems and other will not. RESEARCH PROCESS Research process consist of action or steps necessary for effective carry out research and the desired of this steps1. Formulating the Research problem- The best way of understanding the problem is to discuss it with ones own colleagues or with those having some expertise in the matter. 2. Extensive Literature Survey- After formulating the problem a brief summery of its should be written down. At this function research should undertake extensive literature survey concerned with the problem. 3. Development of working hypothesis- After extensive literature survey, researcher should state in clear terms the working hypothesis. 4. Preparing the research design- The research problem has bee formulated in clear cut terms. The researcher will be required to prepare a research design.
Basically there are three types of research design. Exploratory research design. Descriptive research design.
38
5.
Hypothesis testing design. Determining the sample designs- All the items under consideration in any field of inquiry constitute a universe or population. There are two types of sampling method are used to design sample.
-
Random sampling Non random sampling The success of the analysis mostly depends on the methodology on which it is carried out. The appropriate methodology will improve the validity of the findings. ? Data Collection: The study is based on the data collected through primary and secondary sources. ? Primary Data: An interview schedule and Questionnaire was designed to collect primary data from various customer of Public & Private sector bank. ? Secondary Data: Secondary data was collected from journals, magazines, web sites and from other relevant publications.
? Sampling Design: The sampling design mainly consists of the sample taken for the study along with the sample size, sample frame and sampling method.
39
? Sample Size: From the universe, sample sizes of 50 customers were selected for the purpose of the study. ? Sample Frame: The customers were selected on a random basis from which the respondents were selected based on convenience. ? Sampling Method: Convenience sampling was used, based on the willingness and availability of the respondents. The study was conducted on consumers with different type of business.
TOOLS AND TECHNIQUES
40
As no study could be successfully completed without proper tools and techniques, same with my project. For the better presentation and right explanation I used tools of statistics and computer very frequently. And I am very thankful to all those tools for helping me a lot. Basic tools which I used for project from statistics are- Pie charts - Tables bar charts and pie charts are really useful tools for every research to show the result in a well clear, ease and simple way. Because I used bar charts and pie charts in project for showing data in a systematic way, so it need not necessary for any observer to read all the theoretical detail, simple on seeing the charts any body could know that what is being said. Technological Tools Ms-Word Ms-excel Internet Above application software of Microsoft helped me a lot in making project more interactive and productive. Microsoft-Excel had a great role in my project, it created for me a situation of “you sit and get”. I provided it simply all the detail of data and in return it given me all the relevant information.. Microsoft-Access did the performance of my personal assistant who organizes my all the details of document without disturbing them even a single time in all the project duration. And in last Microsoft-Word did help me for the documentation of the project in a presentable form.
SCOPE OF THE STUDY
41
In Indian Banking sector includes many players, but out of these players I have selected only the Four Banks SBI , IDBI & ICICI, HDFC bank .The study gave me a chance to carry Comparative analysis of consumer behavior along with its various tools used in analysis which helps to understand the basics of Consumer Behavior in Public & Private sector Bank and provides the tools that help to decide which companies make worthwhile investments. This type of analysis examines key products and policies of Banks. .The scope of project extends to the study of 4 key players of Indian Banking sector . The study was mainly based on the Consumer Behavior in Public & Private sector Bank.
LIMITATIONS Despite the possible efforts in concluding the research, they were some unavoidable situations, which limited the scope of the project. 1. The study was restricted to Bhopal. 2. Time was the biggest constraint as all questionnaires were to be filled in person to actual views, but all efforts were made to get information relevant to the research. 3. There may be some disepecies in views as some, people might give false information in questionnaire, as they might not be in filling the form. 4. The sample size of 50 is small so there may be difference in the reality and the findings.
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CHAPTER NO-06
DATA ANALYSIS & INTERPRETATION
43
44
CHAPTER NO-07
FINDING
45
CHAPTER NO-08
SUGGESTION
SUGGESTION
46
1. Company should advertisement through various things i.e advertisement through print media electronic media and distribution network. 2. As we have seen in the study persons are must affected by price & quality factor. The company should concentrate over the price factor of the program so that new customer could be attracted to wards the program although quality factor of the program is satisfactory. 3. The company must conducted the satisfaction survey time to time so
that company could know the satisfaction level of the consumer. It will be more beneficial to company in making new strategies & policies. 4. Most of the person, which participated in the survey have said that the program should be divided in to small packages. So that any one could buy it easily. 5. The company price should be kept low in comparison to competitors product price so that company can earn more profit by selling large volume. 6. The company’s awareness is low, the company should be more
concentrate to increase the awareness of the company. The company can use many marketing total to perform this work. 7. The company should be conducted the demo of program complaint, policies & suggestion. It can improved it market share and consumer satisfaction.
47
CHAPTER NO-09
CONCLUSION
CONCLUSION
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The bank needs to make people aware about there products and the basic benefits they can derive out of it. Aggressive Marketing is the key to increasing the market share in this area, since the market has a lot of potential both in terms of untapped market Almost Both the Banks offer similar features and facilities with their Products. There are certain reasons for existing customers of credit card of any Bank to shift to another Bank.
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CHAPTER NO-10
BIBLIOGRAPHY
BIBLIOGRAPHY
50
BOOKS Marketing Management Philip Kotler, The Millennium Edition, Prentice Hall Of India Private Limited, New Delhi. A. Aaker, David. Strategic Market management. New York: John Wiley & Sons,2001, pp.154-162. Levy, Michael. A. Weitz .Barton. Retailing Management. New York: McGrew-Hill,2004,pp.6-8, 627 Palmer, Adrian. Introduction to Marketing. India: Oxford University Press,2004, pp.350-351,363. 1. MAGAZINES REFFERED: • INDIA TODAY • BUSINESS TIMES 2. WEBSITES REFFERED:
• www.icicibank.com • www.sbi.com • www.indianinfoline.com • www.creditcardsbasic.com 3. SEARCH ENGINES: • www.google.co.in
•
www.wikipedia.org.in
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CHAPTER NO-11
ANNEXURE
52
QUESTIONNAIRE
53
doc_524835180.doc