Nishant. Joshi, Assistant Professor with Prestige Institute of Management and Research, Indore, Madhya Pradesh, India

(Phone: +91-9893301006; (e-mail: nishant_joshi@pimrindore.ac.in).

Dr.Karunesh Saxena, Professor in Faculty of Management

Studies, Mohan Lal Sukhadiya University, Udaipur, Rajasthan, India (Phone: +91-9928074007e-mail:

karuneshsaxena@gmail.com)

SERVLOYAL Amongst Bank Customers Of Indore: An Exploratory Research

Introduction

• Loyalty• Service Quality• Banking• Paradigm Shift in Global Banking Environment• Regulatory , Structural and Technological Factors• Financial Sector Reforms in India• Increasing Competitiveness of Banking sector• Narsimhan Committee Recommendations Facilitated entry

of private sector Banks• Foreign Banks also allowed

Introduction

• Banks given more operational autonomy• Market Power Shifting from Banks to Customers• Customer is the King• New Buzz Words of Banking ….– Customer relationship Management– Customer Satisfaction – Customer Retention

Introduction

• Customer Loyalty – Long term oriented• Customer Satisfaction- Influences repeat

Business• Customer Loyalty- “Leads to Positive Word of

Mouth also Gives Repeated Business”• Intense Competition in the Banking sector

demands formulation of Marketing S trategies

Conceptual Frame work

• Loyalty- Describes enthusiastic devotion to some thing

• Customer Asset Management - Need of the Hour

• Zero Defections strategy- Retaining Every Customer

• SERVQUAL GAP Model- Five Dimensions

Conceptual Frame work

SERVQUAL GAP Model- Many researchers suggested that Dimensions are contextual and require considerable adaptation

SERVELOYAL- Measures extent of customer loyalty

Customer Loyalty Leads to increased Profitability.

Rationale

• Numerous research projects on service quality undertaken in the developed countries.

• Pioneering efforts by the researchers to study service loyalty in central province of India

• Indore- Financial Hub of Central Province of India.

• Lessons of this study can be replicated in rest of the world.

Objective

• To determine the impact of dimensions affecting service loyalty in banking services in Indore city.

Hypothesis

• There is no significant impact of Attitude, Cognitiveness, Behavior and Trust on Service Loyalty.

Research MethodologyThe Study:• The research was exploratory in nature. The main objective behind this

research was to identify service loyalty amongst bank customers of Indore.

Independent Variable• Attitude, Cognitiveness, Behavior and Trust

Dependent Variable• Service Loyalty

The Sample• The data was collected through convenience sampling method. A sample of

220 respondents was taken from scheduled banks like state bank of India, Punjab National bank, Canara Bank,HDFC, ICICI, IDBI etc. These were customers of the various above listed banks.

Research Methodology

Tools for Data Collection– Primary Data has been collected from 220

respondents based on a Lickert four point scale. The questionnaire has been adapted from the service loyalty scale of Sudhahar,Israel, Britto and Selvam (2006) published in the American Journal of Applied Sciences. The questionnaire was divided in four sections and each section represents a dimension namely Behavioral, Attitudinal, Cognitive and Trust.

Research Methodology

Tools for Data Analysis– Dimensional averages were drawn– Augmented dickey fuller test (Using E-Views Ver.

05). – Multiple regression using SPSS 17.0. In the process

Durbin and Watson test was also applied to finally test the applicability of multiple regression.

Results

• Their exists no Unit Root Problem • Relatively High Correlation• Problem of autocorrelation does not exists• Regression Model thus formed is :L= 0.715 + 0.1825 B + 0.1935 A+ 0.0835 C + 0.23

T

Conclusion

• In words of Keller, “Delighted customers is yours forever, till delighted”, the author expressed the concern that in global business formats the customers have choices so he shall remain with the service provider till he is delighted