A STUDY ON CUSTOMER BEHAVIOR TOWARDS · PDF fileA STUDY ON CUSTOMER BEHAVIOR TOWARDS BANKING...

Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.2 (2), February (2013) Online available at indianresearchjournals.com
183
A STUDY ON CUSTOMER BEHAVIOR TOWARDS BANKING
SERVICES WITH SPECIAL REFERENCE TO PUBLIC SECTOR BANKS
IN SIVAGANGAI DIST
DR. K.ALAGARSAMY*; S.WILSON**
*ASSISTANT PROFESSOR IN COMMERCE
R.D.GOVT.ARTS COLLEGE, SIVAGANGAI.
** ASSOCIATE PROFESSOR
HEAD OF THE DEPT OF ECONOMIC
R.D.GOVT ARTS COLLEGE SIVAGANGAI.
_____________________________________________________________________________________
The banking system forms the important role in the financial sector of an economy. The role of
commercial banks is particularly important in third world countries through
(i) The Mobilization of resource.
(ii) Better allocation.
(iii) The development process of under developed countries.
(iv) By giving attractive saving schemes
(v) And ensuring safety of deposits commercial banks encourage willingness
(vi) To save among the people in rural areas.
(vii) They help to convert idle saving in to effective one.
(viii) Commercial banks improve the allocation of resources by lending money to priority sectors of the economy.
The public sector banks in India operate
(i) In a highly competitive environment with competition from non banking financial institution.
(ii) Foreign banks intensifying walk business for Indian banks in respect of deposits can no longer be expected.
In order to survive in these days of fierce competition public sector banks have to apply
(i) Marketing approach product differentiation is often employed as a major
technique to survive in a competitive market.
(ii) Each bank follow different procedure it is very difficult to follow the
customers.
Even through the customer is well educated some time high technology banking services hesitate
the customer for the transaction.
For the effective banking transaction the banks should have

184
(i) good communication (ii) Soft skill must need. (iii) The bank management need to educate the employees for the banking
activities and process universal banking procedure can help the customer
for the better transaction.
CUSTOMER FOCUS OVER THE DECADES
Customer are now demanding multiple channels through which they can interact with their
providers including (i) Face to face contact (ii) Phone (iii) Websites e-mail mobile device etc.
Which has forced the banking sector to explore new distribution channels, so that ordinary
customer which have more information about multiple banking products than even before. This
is aimed not only to present the customer from taking their business elsewhere but also to ensure
that they are offered the product and services that are most appropriate and most likely to result
in new revenue for the bank. There is a phenomenal change and paradigm shift towards customer
focus over the past five decades. The banking business found standing on the pillars of
customers satisfaction it is pertinent that policy makers and branch manager think over the
problem on priority basis.
DECADE-FOCUS ON CUSTOMER
1950-1960 - Serving the customer
1960-1980 - Satisfying the customer
1980-1990 - Pleasing the Customer
1990-2000 - Delighting the customer
2000 and beyond - Retaining the customer
ROLE OF BANKS IN NEW ECONOMICS
From the economy point of view the major task of banks and other financial institution is to 1)
Act as an intermediate 2) Channeling savings to investment and 3) Consumption through them,
the investment requirement of savers are reconciled with the credit needs of investors and
consumers.
In this process of transaction is to be carried out efficiently it is absolutely essential that the
banks be involved. Indian banking has aided the economic development in an effective way
during the post independence period. The banking sector has shown remarkable responsiveness
to the needs of the planned economy.
It has brought about a considerable progress in 1) In its efforts at deposits mobilization and 2) It
has taken a number of measure in the recent past to accelerate the rate of growth of deposits. To
achieve this wants commercial banks opened a 1) Number of branches a) Urban
b) Semi urban c) Rural areas and 2)Introduced a number of attractive schemes 3)Free services to
customer attract more customer.

185
STATEMENT OF THE PROBLEM
Sivagangai city there are more public sector and private sector banks were functioning. The
investigator have chosen this topic to study about banking services provided by public sector
banks there is a problem of 1)Abnormal delays in receiving and 2) marketing payment
3) Customers have to wait in definitely without any body attending to them properly at the
counter. This leads to frustration among customers. The procedures laid down at the banks are
lengthy and also it was not easy to follow by them. Even the issue of cheque book takes twenty
to thirty minutes because the banks officers is always busy with cheque and vouchers and
registers, updating of pass book also takes long time. The present customer services systems
lacks motivation and initiatives, these adversely affect the customer service.
OBJECTIVES
To identify the working and living conditions of the customers in public sector
banks at Sivagangai city.
To verify the customer satisfaction towards the services given by banks.
To analyze the recent banking technology and its repercussions on the quality of
customer services.
To analyze the problems involved in banking transactions.
To suggest suitable remedial measure to improve their banking services.
METHODOLOGY
The study covers both primary and secondary data. The primary data collected by interview
method through the well structured questionnaire. For this research five public sector banks were
selected in Sivagangai district State bank of India-6, Canara bank-6, Indian overseas bank-16,
Indian bank-16 Oriental bank of commerce-2 among these branch the researcher has chosen five
banks from each one. From the five public sector banks each bank 20 customers were selected by
using random sampling method.
The secondary data was collected from the published records, books journals encyclopedias,
government surveys and web portals. The collected data have been processed and analyzed with
the help of the following, SPSS tools used to test the hypotheses 1) X2
test 2) t test 3) Standard
devision,4) Arithmetic man were used.
EDUCATIONAL QUALIFICATION
Education in the largest sense is any act or experience that has a formative effect on the mind,
character or physical ability of an individual. In its technical sense, education is the process by
which society deliberately transmits its accumulated knowledge, skill and values form one
generation to another.

186
Table 1
EDUCATIONAL QUALIFICATION OF THE RESPONDENTS
S.No Educational
Qualification
No of Respondents Percentage
1. Illiterate 6 6
2. Up to 10th
24 24
3. 11th
-12th
22 24
4. Under graduate 25 25
5. Post graduate 20 20
6. Diploma 3 3
Total 100 100
Source: Primary data
The above table reveals that 6 percent of respondents were comes under the category of
illiterates and 24 percent of the respondents were studied up to 10th
standard. The above table
exhibit 35 percent of respondents were under graduates and also 20 percent of respondent were
post graduate. From this study it is clear that the bank has focus all the category of customer.
Educational Qualifiication of the Respondents
6
2422
25
20
3
0
5
10
15
20
25
30
Illiterate Up to 10th 11th-12th Under
graduate
Post
graduate
Diploma
Educational Qualification
Perc
enta
ge

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Occupation of the Respondents
8
47
26
3
97
0
5
10
15
20
25
30
35
40
45
50
Services Profession Business Pensioners Agriculture Other
Occupation
Perc
en
tag
e
OCCUPATION The following table shows that the customer occupation
Table 2
OCCUPATION OF THE RESPONDENTS
S.No Occupation No. of Respondents Percentage
1. Services 8 8
2. Profession 47 47
3

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