Credit Card The concept of using a card for purchases was described in 1887 by Edward Bellamy in his utopian novel Looking Backward. Bellamy used the term credit card eleven times in this novel The modern credit card was the successor of a variety of merchant credit schemes. It was first used in the 1920s, in the United States, specifically to sell fuel to a growing number of automobile owners. In 1938 several companies started to accept each other's cards. Western Union had begun issuing charge cards to its frequent customers in 1921. Some charge cards were printed on paper card stock, but were easily counterfeited. The Charga-Plate was an early predecessor to the credit card and used during the 1930s and late 1940s. It was a 2 1/2" x 1 1/4" rectangle of sheet metal, similar to a military dog tag, that was embossed with the customer's name, city and state (no address). It held a small paper card for a signature. It was laid in the imprinter first, then a charge slip on top of it, onto which an inked ribbon was pressed. ChargaPlate was a trademark of Farrington Manufacturing Co. Charga-Plates was issued by large-scale merchants to their regular customers, much like department store credit cards of today. In some cases, the plates were kept in the issuing store rather than held by customers. When an authorized user made a purchase, a clerk 1
retrieved the plate from the store's files and then processed the purchase. ChargaPlates speeded back-office bookkeeping that was done manually in paper ledgers in each store, before computers. The concept of customers paying different merchants using the same card was invented in 1950 by Ralph Schneider and Frank X. McNamara, founders of Diners Club, to consolidate multiple cards. The Diners Club, which was created partially through a merger with Dine and Sign, produced the first "general purpose" charge card, and required the entire bill to be paid with each statement. That was followed by Carte Blanche and in 1958 by American Express which created a worldwide credit card network. Bank of America created the Bank Americard in 1958, a product which, with its overseas affiliates, eventually evolved into the Visa system. MasterCard came to being in 1966 when a group of credit-issuing banks established Master Charge; it received a significant boost when Citibank merged its proprietary Everything Card, launched in 1967, into Master Charge in 1969. The fractured nature of the U.S. banking system meant that credit cards became an effective way for those who were traveling around the country to move their credit to places where they could not directly use their banking facilities. In 1966 Barclaycard in the UK launched the first credit card outside of the U.S.
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There are now countless variations on the basic concept of revolving credit for individuals (as issued by banks and honored by a network of financial institutions), including organization-branded credit cards, corporate-user credit cards, store cards and so on. In contrast, although having reached very high adoption levels in the US, Canada and the UK, it is important to note that many cultures were much more cashoriented in the latter half of the twentieth century, or had developed alternative forms of cash-less payments, such as Carte bleue or the Eurocard (Germany, France, Switzerland, and others). In these places, the take-up of credit cards was initially much slower. It took until the 1990s to reach anything like the percentage market-penetration levels achieved in the US, Canada, or the UK. In many countries acceptance still remains poor as the use of a credit card system depends on the banking system being perceived as reliable. In contrast, because of the legislative framework surrounding banking system overdrafts, some countries, France in particular, were much faster to develop and adopt chip-based credit cards which are now seen as major anti-fraud credit devices. The design of the credit card itself has become a major selling point in recent years. The value of the card to the issuer is often related to the customer's usage of the card, or to the customer's financial worth. This has led to the rise of Co-Brand
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and Affinity cards - where the card design is related to the "affinity" (a university, for example) leading to higher card usage. In most cases a percentage of the value of the card is returned to the affinity group.
CUSTOMER SATISFACTION Whether the buyer is satisfied after purchase depends on the offer's performance in relation to the buyer's expectations. In general, satisfaction is a person's feelings of pleasure or disappointment resulting from comparing a product's perceived performance (or outcome) in relation to his or her expectations. If the performance falls short of expectations, the customer is dissatisfied. If the performance matches
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the expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted
CUSTOMER EXPECTATIONS How do buyers form their expectations? From past buying experience, friends' and associates' advice, and marketers' and competitors' information and promises. If marketers raise expectations too high, the buyer is likely to be disappointed. However, if the company sets expectations too low, it won't attract enough buyers (although it will satisfy those who do buy). Some of today's most successful companies are raising expectations and delivering performances Measuring customer satisfaction a company would be wise to measure customer satisfaction regularly because one key to customer retention is customer satisfaction. A highly satisfied customer generally stays loyal Longer, buys more as the company introduces new products and upgrades existing products, talks favorably about the company and its products, pays less attention to competing brands and is less sensitive to price, offers product or service ideas to the company, and costs less to serve than new customers because transactions are routine. The link between customer satisfaction and customer loyalty, however, is not proportional. Suppose customer satisfaction is rated on a scale from one to five. 5
At a very low level of customer satisfaction (level one), customers are likely to abandon the company and even bad-mouth it. At levels two to four, customers are fairly satisfied but still find it easy to switch when a better offer comes along. At level five, the customer is very likely to repurchase and even spread good word of mouth about the company. High satisfaction or delight creates an emotional bond with the brand or company, not just a rational preference (For customer satisfaction surveys, it's important that companies ask the right questions. Frederick Reichheld suggests that perhaps only one question really matters: "Would you recommend this product or service to a friend?" He maintains that marketing departments typically focus surveys on the areas they can control, such as brand image, pricing, and product features. According to Reichheld, a customer's willingness to recommend to a friend results from how well the customer is treated by front -line employees, which in turn is determined by all the functional areas that contribute to a customer's experienced
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ORIGIN OF THE TERM BANK The word “bank” is derived from the Italian word “banco”, the Latin word “bancus” and the French word “banque”, which mean a bench. They are of the opinion that the medieval European bankers (i.e., money changers and money lenders) transacted their banking activities, viz., money changing (i.e., exchanging one currency for another) and money lending, by displaying coins of different countries, and of different denominations in big heaps on the benches in the market places. As such, the word “bank” should be associated with Italian word “banco”.
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According to others, the term “bank” is derived from the German word “banck”, which means a joint stock fund or a common fund (i.e., a heap of money) rose from a large number of members of the public. They contend that the early European bankers raised a common fund or heaps of money from the public for the purpose of financing the needy. As banks deal in common fund or heaps of money raised from the public, the term “bank” should be traced to the German word “banck”.
Of these two views, the latter view seems to be more convincing, because the word ‘bank’ is, generally, associated with an institution dealing in money raised from the public.
MEANING OF BANK A bank is an institution which deals with money and credit. It accepts deposits from the public, makes the funds available to those who needs them, and helps in the remittance of money from one place to another. In fact modern bank performs such a variety of functions that is difficult to give precise and general definitions to it. It is because of this reason that different economies give different definitions of the bank.
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DEFINITION OF THE TERM BANK OR BANKER Walter Leaf’s Definition Walter Leaf defines a bank as” A person or corporation which holds itself out to receive from public deposits payable on demand or by cheque”.
Paget’s definition: Sir John Paget says, “No person or body corporate or otherwise can be banker who does not take deposit accounts, take current accounts, issue and pay cheques and collect cheques crossed and uncrossed for his customers”. He further adds,” One claiming to be a banker must profess himself to be one, the public must accept him as such and finally banking should be his main business”. According to this definition, the essential features of a banker are:
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1. Acceptance of deposits of money on deposit and current accounts. 2. Repayment of those deposits. 3. Collection of cheques for customers. 4. Performance of banking business as the main business.
IMPORTANCE OF BANKS IN THE MODERN ECONOMIC DEVELOPMENT Importance of banks in the modern economic development of a country, they touch almost every aspect of the modern economy. According to Schumpeter, “The banking system is one of the two key agents (the other being entrepreneurship) in the whole process of development. The economic importance of banks is as follows:
a) Banks mobilize the small, scattered and idle savings of the people and make them available for productive purposes. In short, they help the process of capital formation. b) By offering attractive interest on the savings of the people deposited with them, banks promote the habit of thrift and savings among people.
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c) By accepting the savings of people, banks provide safety and security to the surplus money of the depositors. d) Banks provide a convenient and economical means of payment. The cheque system introduced by banks is of great help for making payments. e) Banks provide a convenient and economic transfer of funds from one place to another. Bank drafts or demand drafts are commonly used for remittance of funds from one place to another. f) Banks help the movement of funds from region whether they are not very useful to regions where they can be more usefully employed. g) Banks influence the rate of interest in the money market. Through the supply of money (i.e. bank money or credit money), banks exert a powerful; influence on the interest rates in the money market. h) Banks help trade and commerce, industry and agriculture by meeting their financial requirements. i) Banks direct the flow of funds into productive channels. j) Through the process of creation of money, banks acquire control over the supply of money in the country. k) Today, banks have attained very great importance. They would not have been as importance as they are today, if they are merely financial intermediaries linking lenders and borrowers. It is their ability to manufacture money that has made them very important. In the process of 11
linking lenders and borrowers, they manufacture money (i.e. bank money or credit money) by lending several times the cash deposits they receive.
Thus banks are useful in several ways. We can conclude that a strong and sound banking system is indispensable for the economic development of any country.
India has a well developed banking system. Most of the banks in India were founded by Indian entrepreneurs and visionaries in the pre-independence era to provide financial assistance to traders, agriculturists and budding Indian industrialists. Indian banks have played a significant role in the development of Indian economy by inculcating the habit of saving in Indians and by lending finance to Indian industry.
The commercial banking structure in India consists of: scheduled commercial Banks and unscheduled Banks. Schedule commercial Banks constitute those banks, which have been included in the second schedule of Reserve Bank of India (RBI) Act, 1934. RBI includes only those banks in this schedule, which satisfy the criteria laid down vide section 42 (6) (a) of the Act.
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Indian banks can be broadly classified into nationalized banks/public sector banks, private banks and foreign banks.
Nationalized Banks in India Banking System in India is dominated by nationalized banks. The nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major objective behind nationalization was to spread banking infrastructure in rural areas and make available cheap finance to Indian farmers. Fourteen banks were nationalized in 1969. Before 1969, State Bank of India (SBI) was the only public sector bank in India. SBI was nationalized in 1955 under the SBI Act of 1955.
The second phase of nationalization of Indian banks took place in the year 1980. Seven more banks were nationalized with deposits over 200 crores.
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List of Public Sector Banks in India is as follows: •
Allahabad Bank
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Andhra Bank
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Bank of Baroda
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Bank of India
•
Bank of Maharashtra
•
Canara Bank
•
Central Bank of India
•
Corporation Bank
•
Dena Bank
•
Indian Bank
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Indian Overseas Bank
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Oriental Bank of Commerce
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Punjab and Sind Bank
•
Punjab National Bank
•
State Bank of Bikaner & Jaipur
•
State Bank of Hyderabad
•
State Bank of India (SBI) 14
•
State Bank of Indore
•
State Bank of Mysore
•
State Bank of Patiala
•
State Bank of Saurashtra
•
State Bank of Travancore
•
Syndicate Bank
•
UCO Bank
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Union Bank of India
•
United Bank of India
•
Vijaya Bank
Private Banks in India All the banks in India were earlier private banks. They were founded in the preindependence era to cater to the banking needs of the people. But after nationalization of banks in 1969 public sector banks came to occupy dominant role in the banking structure. Private sector banking in India received a filip in 1994 when Reserve Bank of India encouraged setting up of private banks as part of its
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policy of liberalization of the Indian Banking Industry. 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.
Private Banks have played a major role in the development of Indian banking industry. They have made banking more efficient and customer friendly. In the process they have jolted public sector banks out of complacency and forced them to become more competitive
Major Private Banks in India are:
•
AXIS Bank
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Bank of Rajasthan
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Bharat Overseas Bank
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Catholic Syrian Bank
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Centurion Bank of Punjab
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Dhanalakshmi Bank
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Federal Bank
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HDFC Bank 16
•
ICICI Bank
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IDBI Bank
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IndusInd Bank
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ING Vysya Bank
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Jammu & Kashmir Bank
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Karnataka Bank
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Karur Vysya Bank
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Kotak Mahindra Bank
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SBI Commercial and International Bank
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South Indian Bank
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United Western Bank
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YES Bank
Foreign Banks in India
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Foreign banks have brought latest technology and latest banking practices in India. They have helped made Indian Banking system more competitive and efficient. Government has come up with a road map for expansion of foreign banks in India.
The road map has two phases. During the first phase between March 2005 and March 2009, foreign banks may establish a presence by way of setting up a wholly owned subsidiary (WOS) or conversion of existing branches into a WOS. The second phase will commence in April 2009 after a review of the experience gained after due consultation with all the stake holders in the banking sector. The review would examine issues concerning extension of national treatment to WOS, dilution of stake and permitting mergers/acquisitions of any private sector banks in India by a foreign bank.
Major foreign banks in India are: •
ABN-AMRO Bank
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Abu Dhabi Commercial Bank Ltd.
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American Express Bank Ltd
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BNP Paribas
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•
Citibank
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DBS Bank Ltd
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Deutsche Bank
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HSBC Ltd
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Standard Chartered Bank
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Corporation Bank, the oldest banking institution in the erstwhile undivided Dakshina Kannada District of Karnataka and one of the oldest banks in India, was founded in 1906 in the Temple Town of Udupi, by a small group of philanthropists led by Khan Bahadur, Haji Abdulla, and Haji Kasim Saheb Bahadur. The need to start this bank was felt because there was no such facility at Udupi, an important trading centre next to Mangalore in D.K. District. The indigenous banking was largely in the hands of a few rich private individuals and something had to be done to provide relief to the common man from the clutches of the money lenders who held full sway. The first branch of a modern bank established in the district was the Bank of Madras, one of the three Presidency Banks, which set up its office in Mangalore in 1868 largely to cater to the business needs of a few British firms dealing in export of plantation products. Its agent used to visit Udupi once a fortnight or so, to do banking. Money remittances had to be made only through postal medium.
To overcome these drawbacks and also to provide banking facilities for Udupi in particular and the district in general, a cosmopolitan group of philanthropists led by Haji Abdulla Saheb made a bold venture to start this institution. What inspired the founding fathers was the fervour of Swadeshism. For promoting the Bank , the 20
Founder President made an appeal saying , " The primary object in forming the ‘Corporation' is not only to cultivate habits of thrift amongst all classes of people , without distinction of caste or creed, but also habits of co-operation amongst all classes. This is ‘Swadeshism', pure and simple and every lover of the country is expected to come forward and co-operate in achieving the end in view." "The Canara Banking Corporation (Udupi) Ltd.," as the institution was called then, started functioning as a ‘Nidhi' with a humble beginning. The initial capital was Rs.5000/- and at the end of the first day, its resources stood at 38 Rupees - 13 Annas and 2 Pies. The setting up of the Canara Banking Corporation Ltd. seems to have given a fillip to co-operative Banking and also to regular banking elsewhere in the district. Between 1909 and 1917, six co-operative banks came into being and during the decade immediately after the First World War (1914-18) South Kanara gave birth to as many as eight banks. It is to the credit of this Bank that despite two world wars, economic depression and stiff competition, the Bank not only quite survived, but also made satisfactory progress. Having been started at Udupi, the Bank first branched out by opening a branch at Kundapur in 1923. The second branch of the Bank was opened in Mangalore at Car Street in 1926. The Bank stepped into Kodagu District in 1934 by opening its seventh branch in Madikeri. In 1937, the Bank was included in the second schedule of Reserve Bank of India Act, 1934. In 1939, the Bank's name changed from "Canara Banking Corporation (Udupi) Ltd." to "Canara Banking Corporation Ltd." The Bank graduated into a 21
Regional Bank in 1945 when the total number of its branches stood at 28. In the year 1961, it took over ‘Bank of Citizens, Belgaum.' In the same year, the Bank's Administration Office shifted from Udupi to Mangalore.
The second change in the name of the Bank occurred in 1972, from ‘Canara Banking Corporation Ltd' to ‘Corporation Bank Limited.' The Bank was nationalized in 1980 along with 5 other private sector banks. After nationalization, the pace of growth of the Bank accelerated and it made All-round progress. Started as a common man's bank, it changed with the times to meet the aspirations of the people but never swerved from its motto- "Sarve Janah Sukhino Bhavantu" meaning Prosperity for All. It endeavored and succeeded in striking a right balance between traditional values and innovative approach, personalized service and professional outlook and commercial considerations and public concern. One of the unique achievements of the Bank is that it has been paying dividend continuously for the last 98 years since its inception. Today, with the most modern technology-driven products and services and nationwide branches & ATMs, Corporation Bank stands tall among the Public Sector Banks in the country and is hailed as one among the well-managed Public Sector Banks with excellent track record in all the key parameters of banking. The Bank has the second largest ATM network in the public sector.
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Corporation Bank has completed 100 years of its purposeful and fruitful existence on 12th March, 2006. The Centenary celebrations were launched by Shri V. Leeladhar, Deputy Governor, Reserve Bank of India with the Bank's Foundation Day lecture on 12th March, 2005.As a part of the Bank's centenary celebrations, a number of programmes and projects were planned and executed. As a first step, the Bank has launched the Corp Kissan Card - debit card tied up with VISA international,, to enable the farmers make timely purchases for agricultural operations at Yeshwantpur-Malur in Kolar District on 13th March 2005. A modern public library was dedicated to the citizens of Mangalore in DK District, the birth place of the Bank by Shri P. Chidambaram, Hon'ble Union Finance Minister on 12th March, 2006. The library building also houses a Numismatic Museum and a multi purpose hall for intellectual activities. The Bank has also set up libraries in 25 villages and given away scholarship to 100 meritorious students of such villages for the pursuit of their higher education.
Mission Statement 23
➢
To become a provider of World - Class Financial Services
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To meet Customer expectations through Innovation and Technological Initiatives
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To emerge as a Role Model with distinct culture identity, ethical values and Good Corporate Governance
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To enhance Shareholder's Wealth by sustained, profitable and financially sound growth with prudent risk management systems
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To fulfill national and social obligations as a responsible Corporate citizen
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To create an environment, intellectually satisfying and professionally rewarding to the employees.
Vision Statement “To emerge as the most preferred Bank with global standards in financials, efficiency, technology, products and services”.
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1. Title of the study: “Customer satisfaction survey of Corporation Bank credit cards”
2. Type of research: Descriptive Research
Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. In social science and business research we quite often use the term Ex post facto research for descriptive research studies. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. The research conducted in this project is of descriptive in nature.
3. Objectives of the study: To find out the level of satisfaction amongst the customer with regard to
Corporation Bank credit card To compare the Corporation Bank credit card with other Credit Card
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To find out if there will be an increase the demand for Corporation Bank credit
card in the near future To suggest the management the ways to improve the service of credit card
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4. Scope of Research: The study has covered 50 customers of Corporation Bank who are using Corporation Bank credit cards and are residing in and around Dakshina Kannada district
5. Relevance of the study: Corporation Bank is one of the oldest public sector banks in India. Which has been voted as best public sector bank year after year, hence the customers are largely satisfied with the bank? But the credit card offered by the bank is one of the latest service offered by the bank hence it is relevant to study whether the customer are satisfied with the credit card or not.
6. Limitations of the study: a. Time constraints b. The study is based upon the opinion of 50 respondents and cannot be generalized c. The respondents could be biased in marking the options
7. Research methods and Research methodology 1. Collection of data 26
A. Primary data: (a) Questionnaires (b)
Personal interviews with the officials
B.Secondary data (a) Books (b) Internet (c) Previous research works
Evaluation and comparison of the data with respect to the problem and the necessary solutions and conclusions
8. Sample Design: Deliberate judgmental sampling design
Deliberate sampling is also known as purposive or non-probability sampling. This sampling method involves purposive or deliberate selection of particular units of the universe for constituting a sample which represents the universe. In judgment sampling the researcher's judgment is used for selecting items which he considers as representative of the population. The sampling technique in this study is a combination of deliberate and judgmental sampling.
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1. . Age
Options Less than 25 25-35 35-45 45-55 55 & above
Table No. 5.1: Age of respondents No of respondents 08 15 07 16 04
Percentage 16 30 14 32 08
From table and chart no 5.1 it is evident that 16 % of the credit card holders are less than the age of 25, 30% are between the age group 25-35,14% are between the age group 35-45, 32% are between the age group 45-55, and 8% are between the age group 55 & above. So it can be observed that majority of the credit card holders are in between the age group of 45-55 as well as 25-35
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2. GENDER Table No 5.2. Gender of the Respondents Options No of respondents Percentage Male 38 76 Female 12 24 From the table and chart no 5.2 it is evident that 76% credit card holders are male and 24% are female. So it is clear that more number of males possess credit cards than females
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3. Qualification: Table No5.3: Qualification of the respondents Options No. of Respondents Percentage Less than 10 Std 02 04 10-12 Std 01 02 Graduates 34 68 Post graduate 13 26
From the table and chart no 5.3 it is evident that 4% respondents of the Corporation Bank credit card holders are of the qualification of less than 10th standard, 2% respondents are of the qualifications between 10th standard to 12th standard, 68% respondents are graduates and 26% are post-graduates. So it is clear that majority of the respondents are graduates.
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4. Martial Status Table No5.4: Marital Status of the Respondents Options No of respondents Percentage Single 16 32 Divorced 02 04 Married 32 64 widowed 00 00
From the above table and chart no 5.4 it is clear that 32% of the credit card holders are single, 4% are divorced and 64% are married. So it is evident that more than half of the credit card holders are married.
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5. Time period since respondents are maintaining an account with
Corporation Bank Table no 5.5: Period for maintaining an account Options No of respondents Percentage Less than 6 months 00 00 6 months – 1 year 00 00 1 year – 2 years 11 22 2 years and more 39 78
From the table and chart no 5.5 it is evident that 22% of the credit card holders are maintaining an account with Corporation Bank for a period of 1 year – 2 years, whereas 78% are maintaining an account with Corporation Bank for a period of 2 years or more. So it is clear that most number of respondents are maintaining account with Corporation Bank since more than 2 years
6. Since how long have you been using Corporation Bank credit card
Table no 5.6: Period of usage of credit card Options No of respondents Percentage Less than 3 months 03 06 3 months – 6 months 03 06 6 months – 1 year 09 18 1 year and above 35 70
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From the table and chart no 5.6 it is evident that 6% of the respondents have been using Corporation Bank credit cards for less than 3 months, 6% of respondents have been for 3 months - 6 months, 18% of respondents have been using for 6 months – 1 year and 70% of respondents have been using for 1 year and above. So we can conclude by saying that majority of the respondents have been using Corporation Bank credit cards for 1 year and above 7. Reason for trying Corporation Bank credit cards
The major reasons why the customers opted for Corporation Bank credit cards are: i. The customers felt it was need of the hour ii. There was no joining fees or annual fees in the beginning ,also low rate of interest was been charged by bank comparatively iii. To desire the convenience in payment iv. To avoid the risk of carrying large amount of cash in pocket v. It has features which is beneficiary to the customers vi. It adds more prestige to them
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1. Frequency of using Corporation Bank credit cards
Table no 5.7: Frequency of usage of credit cards Percentage Options No of Respondents Daily
00
00
Weekly
18
36
Monthly
26
52
Other
06
12
From table and chart no5.7 we can see that 36% of the Corporation Bank credit card holders use their credit card weekly, 52% monthly, and 10% others such as fortnightly or as and when need arises .So it is clear that more than half of the credit card holders used their credit cards at least once a month
2. The terms and the conditions framed by the bank are too confusing Table no 5.8: Response towards the terms and conditions Options No of respondents Percentage Strongly agree 00 00 Agree 08 16 Neutral 12 24 Disagree 30 60
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From the table and chart no5.8, it is evident that 16% felt that the terms and conditions framed by Corporation Bank credit card was confusing, 24% felt neutral and 60% felt it wasn’t confusing. So it is clear that the terms and condition of Corporation Bank credit cards are not confusing
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3. Billing cycle and interest rate charged
Table no 5.9: Satisfaction towards billing cycle and interest rate Options No of respondents Percentage Yes 47 94 No 03 06 From the table and chart no5.9 it is evident that 94 % of the respondents are satisfied and 6% are not satisfied with the billing cycle and the interest rate of Corporation Bank credit cards. So it is evident that the respondents are satisfied with the billing cycle and the interest rate of Corporation Bank credit cards
4. . Satisfaction with the benefits Provided
Table no 5.10: Satisfaction towards the benefits provided Options No of respondents Percentage Yes 44 88 No 06 12
From the table and chart no 5.10 we can see that 88% of the customers are satisfied with the benefits provided with Corporation Bank credit cards, where as 12 % are
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so it is evident that majority of the respondents are satisfied with the various benefits provided with the Corporation Bank credit cards.
5.
Satisfaction with the credit limit sanctioned Table no 5.11. Satisfaction level towards credit limit sanctioned Options No of respondents Percentage Yes 47 94 No 03 06
From the table and chart no 5.11 we can see that 94% of the customers are satisfied with the credit limit provided with Corporation Bank credit cards , where as 6 % are so it is evident that majority of the respondents are satisfied with the credit limit provided with the Corporation Bank credit card
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6.
Places where normally credit cards is used Table no. 5.12: Various places where the credit card is used Options No of respondents Supermarkets 46 Restaurants 23 Petrol bunks 17 Others 06
From the table and chart no 5.12 it is evident that 46 respondents used the Corporation Bank credit in supermarkets, 23 respondents used the credit card in restaurants, 17 in petrol bunks, 6 in other places like online purchasing etc.So it is clear that respondents prefer using credit cards in supermarkets the most when compared to other places
7. . Monthly credit card bill amount on Corporation Bank credit card
Table no 5.13: The monthly average credit card bill amount of various respondents Options No of respondents Percentage Less than Rs 1000 07 14 Rs 1000 – Rs 3000 18 36 Rs 3000- Rs 5000 19 38 Rs 5000 and above 06 12
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From the table and chart no 5.13 it is evident that 14% of the respondents’ average monthly credit card bill amount summed upto less than Rs 1000, 36% between rs1000 and rs3000, 38% between Rs 3000 and Rs 5000, 12 % above Rs 5000 So we can conclude saying that the respondents average monthly credit card bill amounted between Rs 1000 and Rs 5000.
8. . Recommendation of Corporation Bank credit cards to others
Table no 5.14. : Whether the respondents will recommend it to others Options No of respondents Percentage Definitely 34 68 Might or might not 09 18 Probably 07 14 Definitely not 00 00
From the table and chart no 5.14 it is evident that 68% of the respondents would definitely recommend Corporation Bank credit cards to others, 18% might or
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might not and 14% probably would recommend it to others. So we can conclude than more than half of the respondents would recommend Corporation Bank credit cards to others
9. . Satisfaction with the customer care services
Table No 5.15: Satisfaction Level towards customer care Options No of respondents Percentage 1-dissatisfied 03 06 2-neutral 06 12 3-satisfied 33 66 4-highly satisfied 08 16
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From table and chart no 5.15 it is evident that 06% respondents are dissatisfied with the customer care services of Corporation Bank credit cards, 12% are neutral, 66% are satisfied and 16% are highly satisfied. So it is clear that the respondents are satisfied to some extent with regard to customer care services of Corporation Bank credit cards
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10. Satisfaction with being treated as a valued customer
Table No 5.16: Satisfaction with being treated as a valued customer Options No of respondents Percentage 1-dissatisfied 05 10 2-neutral 12 24 3-satisfied 17 34 4-highly satisfied 16 32
From table and chart no 5.16 it is evident that 10% of the respondents felt dissatisfied that the staff showed interest in them as an individual / treated them as an valued customer, 24% felt neutral, 34% felt satisfied, 32% felt highly satisfied So it is clear that the respondents are satisfied to very highly satisfied that the staff showed interest in them as an individual/ treated them as an valued customer
11. (a) Respondents owing other banks credit card
Table No 5.17: Respondents owing other banks credit card Options No of Respondents Percentage Yes 19 38 No 31 62 From the table and chart no 5.17 we can see that 38% of the respondents had credit card of other banks and 62% possessed credit cards of Corporation Banks alone. So we can conclude that more that most of the Corporation Bank credit card holders do not possess any other banks credit card.
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18. (b) Comparison with other banks credit card Table No5.18: Satisfaction level on comparison with other banks credit card Options No of Respondents 1-Dissatisfied 01 2-Neutral 07 3-Satisfied 07 4-Highly satisfied 04
From the table and chart no 5.18 it is evident that of the respondents who owned other banks credit card 01 respondent was dissatisfied, 07 were neutral, 07 were satisfied and 04 were highly satisfied , so we can conclude saying majority of the respondents are neutral- satisfied
FINDINGS
i. It was found that majority of the card holders where in between the age group 25 – 35 and 45-55 ii. It was found from the study that credit cards were owned by more number of male when compared to female iii. It was that more number of married had opted for credit card
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iv. It was found that more than 78% card holders where customers of the bank for more than past two years v. It was found that 68% are graduates vi. It was found from the study that majority of the card holders used their
Corporation Bank credit card once in a month vii.It was found from the study that 60% of the respondents believed that the terms and conditions framed by the bank was not confusing hence making it easier to own a credit card viii.It was found from the study that 94% of the credit card holders where satisfied with the billing cycle and the interest rate charged by the bank on its credit card ix. It was found from the study that 88% of the respondents where satisfied with
the benefits provided with Corporation Bank credit card x. It was found from the study that 94% of the respondents where satisfied with
credit limit offered on their Corporation Bank credit card xi. It was found from the study that majority of the respondents monthly credit card bill amount was in between Rs1000-Rs 5000 xii. It was found from the study that 68% of the respondents would recommend
Corporation Bank credit cards to others xiii.It was found from the study that 66% of the credit card holders were satisfied
with the customer care services of the Corporation Bank credit card
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xiv.The respondents were neutral to satisfied in their satisfaction level with
Corporation Bank credit cards when compared to other banks credit cards xv. It was found from the study that 66% of the respondents felt that the Staff
Showed Interest in Them as an Individual / Treated Them As An Valued Customer xvi.It was found from the study that 62% of the credit card holders did not own any other banks credit card xvii.It was found from the survey that most of the respondents used their credit cards at supermarkets
SUGGESTIONS i. Demonstration on usage of the card: Majority of the card holders know
limited usage of the card on account of non guidance in this matter. Holding demonstrations in the usage of the card and the services available along with the card will go a long way in expansion of credit card business
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ii. Offers on usage: Corporation Bank can provide more offers on using the
credit cards , by awarding points on the usage and giving rewards on the basis of points collected
iii. Fixation of credit limit: Corporation Bank fix the credit limit on a
particular credit card after market survey to find out the desired level of credit limit expected by the customers, also it can look into the credit limit enjoyed by the customer with other banks credit card in case he own one.
iv. Introduce billing machine: Corporation Bank can install its own billing
machines at shopping and other places. Because it was found that majority of that shopping center and other places had billing machines of other banks
v. Ease repayment of credit amount: Corporation Bank can make necessary
arrangement for the payment of credit card bills through ATM, internet, exclusive cheque box etc.
vi. Expanding the collaborations : Corporation Banks can tie up with the
various shopping outlets , supermarkets, petrol bunks in order to provided exclusive offers like discounts, money back to the customers 47
vii. Aggressive marketing strategy :Corporation Bank can adopt aggressive
marketing strategy with regard to credit card by advertising the credit card aggressively
viii.Reduction in interest rate to reasonable extent: Corporation Bank can
reduce the interest rate in order to attract more customers
ix. Customization of credit card: Corporation Bank can customize the credit
card as per the needs of the customer
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CONCLUSION In India there are many players in the credit card segment .Which is mainly captured by private banks. Also majority of the customers prefer making payment through debit card in order to avoid the Hassles and risk associated with the credit cards. Since Corporation Bank has newly introduced the credit card, the bank can make use of the suggestions given in the project report in order to maximize its share and also provide better service to the customers.
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