consumer behavior analysis in selection of a bank
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Behavior analysis of a consumer towards choosing a bank
-:By:-“WHIMSIC GROUP”
Rahul Jogi Ram Upadhyay Rajkishan Vinchhi Praveen Deora Prakash Dadawat
04/10/2023IIPM, Ahmedabad 2
Flow of Presentation Banking & the origin of banks in India
Banking structure in India
Indian Banking Industry
Consumer behavior & decision parameters
Growth drivers
Research Methodology
Findings of the study
Conclusion
Recommendations
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Banking means "Accepting Deposits for the purpose of lending or Investment of deposits of money from the public, repayable on demand or otherwise and withdraw by cheque, draft or otherwise." -Banking Companies (Regulation) Act,1949
Banking & the origin of banks in India
Originated during the rule of East India Company
The General Bank of India, 1786
Swadeshi movement - Punjab National Bank, Bank of India, Bank of Baroda, Canara Bank, and so on were the
pioneers.
Phase I, II & III
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Banking Structure in India
Source: Trend & Progress Report of Banking in India, 2005-06, RBI
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The Reserve Bank of India Established in the year 1935 under the RBI Act, 1934 Nationalized in the year 1949
Preamble:
"...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage.“
Current Focus:
Supervision of financial institutions Consolidated accounting Legal issues in bank frauds Divergence in assessments of non-performing assets and Supervisory rating model for banks.
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Indian Banking Industry Growing at a rapid pace
Banking assets to reach US $1 trillion during 2010
Customer centric approach adopted
Source: www.tradingeconomics.com
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Consumer behavior and decision parameters
Consumer behavior:
Consumer behavior is the study of when, why, how, and where people do or do not buy a product/service.
It blends the elements of Psychology,
Sociology &Economics.
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Decision Parameters:
What is needed?
What will you do now?
How will you do it?
Is the decision worthy enough?
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Porter’s 5 force Model
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Growth Drivers
Demand Based Supply Based
Sustained economic liberalizationHeavy infrastructure investment
Growing middle classCultural deposition more attuned to banks
Increase in banking services
Banks transformed into advisory institutions
Extreme involvement of consumer in decision making.
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Research Methodology Research Objectives:
To understand the behavior of consumers while selecting a bank.
Data Sources:
a) Primary data – Questionnairesb) Secondary data – Journals, brochures of banks,
internet and books.
Sample Design:
Area covered - Ahmedabad & Baroda.Time frame - 15 daysSample size - 100
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Findings of the studyDecision aspects for selecting a bank: (Based on questionnaire)
Rate of interest
Convenience
Easy loans
Free checking options
Online payment easy
ATM gives deposit facility
Overdraft protection plan
Small business loans
One-stop-shop
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Occupation
ServiceSelf EmployedBusinessRetired
Data Analysis (Based on Questionnaires):
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Income
2 to 3 lacs3 to 5 lacs5 to 7 lacs7 to 10 lacsAbove 10 lacs
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First preference from a bank
Apt ServicesPrompt AdviceEasy Negoti-ationsMultiple choices
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Ambi
ence
Empl
oyee
etiq
uettes
Secu
rity
Attra
ctiv
e off
ers
01530
First thing what strikes while selecting a bank
First thing what strikes while selecting a bank
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Frequency of using ATM cards
FrequentlyWeeklyMonthlyNever
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Frequency of Using Internet banking
FrequentlyMonthlyYearlyNever
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Which thing motivates them to select a particular bank?
BrandServiceRelationshipOther
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Major influencers in the de-cision making process
FamilyFriendsColleaguesAdvertisements
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Impact of calls for promotion of bank and its schemes on the
decision of customer
YesNo
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Suggestions for improvement by respondents
SecurityQuick ServicesSchemesAdvertisements
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SWOT Analysis:
Money power Brand image Service quality Large network branches Excellent communication skills with the Executives.
High targets to executives High expenses on advertisements Complicated plans Many competitors
Huge market is untapped Young Population Increasing awareness level Strong distribution network
Increase in competition Saturation of urban market Product differentiation is difficult Increase in tax liabilities
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Conclusion
No major differentiating factor
Decision factors were based on ROI, Convenience & range of operations.
Customer desired a Human Interface based system
More reliability expected
Demand of improved Security system
RBI is working efficiently
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Recommendations:
Involvement of more attractive offers in the brochures. Educate the consumers with latest offerings. Guide consumers with the schemes. Quick and prominent response to queries. Tap the full potential market on both urban as well as rural level. Improvements as per the change in the Government policies. Treat each consumer equally. Assure security for their investments. Target the influencers for getting more business.
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THANK YOU
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