Report on Comparison Between

7/31/2019 Report on Comparison Between

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REPORT ON CONSUMER

PREFERENCE ON CREDITCARDS SERVICE

PROVIDER

ICICI



2

Under the guidance of

MR. DEVANG DESAI

G.I.D.C ROFEL BUSINESS

SCHOOL, VAPI

SUBMITED TO:- SUBMITED BY:-

MR. DEWANG DESAI RAJEEV JHA



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CERTIFICATEThis is to certify that RAJEEV KUMAR JHA have satisfactorily

completed the project work entitled, Report on consumer preference on

credit cards services in India.

Based on the declaration made by the candidate and my association as a

guide for carrying out this work, we recommend this project report as a

part of the PGDM program.

Place: VAPI

Date: 10-APRIL-20102

____________________

____________________

Mr. Devang Desai Dr. KEDAR SUKLA

(Faculty) (Director)



4

TABLE OF CONTENTS:

Sr No. PARTICULARS PAGE No.

1. EXECUTIVE SUMMARY 5

2. ACKNOWLEDGEMENT 6

3. OBJECTIVES OF THE STUDY 7

4. INTRODUCTION OF CREDIT

CARDS

8-10

5. INTRODUCTION OF BANKS 11-13RESEARCH METHODOLOGY 14-15

6. DATA ANALYSIS &

INTERPRETATION

16-31

7. CONCLUSION 32



5

EXECUTIVE SUMMARY

We are in the era of purchasing through credit cards. 'Payment Cards in India' is a

guide to one of Asia's key growth payment card markets. The report provides

statistics on market size, competitor market shares and forecasts. It also provides

an overview of regulations, competitor activities, issuer strategy, product

innovation, consumer segmentation and includes developments in contactless,

mobile, and online payments as well as prepaid cards.

In this report we have tried to analyze the present scenario of Indian credit cards

sector the real aim of the project is to study on the consumer preferences oncredit card service provider , but many sub objectives are also included under

this project so as to make it comprehensive one. We complement this with the

internal study of the companies – business areas to analyze how well poised the

banks are to complete or rather just exist in this market that is proving itself to be

the most competitive in post liberalization Indian economy.

Primary data was collected through the customer survey questionnaire with a

sample size of 100 respondents. This survey was conducted in VAPI, GUJARAT.

Data thus collected analyzed and reported.



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ACKNOWLEDGEMENT

We sincerely thankful to all those people who have been giving me any

kind of assistance in the making of this project report.

We express our gratitude to Mr. Devang Desai, who has through his

vast experience and generous support, constant direction and mentoring

at all stages of project and able to guide us.

We express our gratitude to GRBS ROFEL BUSINESS SCHOOL,

VAPI, and GUJARAT. We would hereby, make most of the

opportunity by expressing my sincerest thanks to all our faculties whose

teachings gave us conceptual understanding and clarity of

comprehension, which ultimately made our job easy. Their continuous

support has given us the strength and confidence to complete the project

without any difficulty.

Last of all but not the least we would like to acknowledge my gratitude

to the respondents without whom this survey would have been

incomplete.



7

RESEARCH OBJECTIVES

THE MAIN OBJECTIVES OF OUR RESEARCH

ARE AS FOLLOWS:

1. to know the perception of people towards credit cards

2. to find out the market leader among the various banks/

companies issuing credit cards

3. to study the satisfaction level of consumers towards credit

cards



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What is credit card?

A card issued by a financial company giving the holder an option toborrow funds, usually at point of sale. Credit cards charge interest and

are primarily used for short-term financing. Interest usually begins one

month after a purchase is made and borrowing limits are pre-set

according to the individual's credit rating.

A credit card is a small plastic card issued to users as a system

of payment. It allows its holder to buy goods and services based on theholder's promise to pay for these goods and services. The issuer of the

card creates a revolving account and grants a line of credit to

the consumer (or the user) from which the user can borrow money for

payment to a merchant or as a cash advance to the user.

HISTORY OF CREDIT CARDS –

The concept of credit dates back to the late nineteenth century. This is

when symbols of credit started being used by merchants while sellinggoods without the buyer having the necessary cash in hand. In fact,

American lawyer and author Edward Bellamy referred to a 'credit card'

in his bestselling novel Looking Backward, which was published in

1888.

According to Encyclopedia Britannica, credit cards began being used in

the US during the 1920s, with oil companies, hotel chains and other

individual firms issuing these cards to their customers. In the late 1930s,companies that issued credit cards began accepting cards issued by other

firms as payment.

The 'Charge-It' card from Flatbush National Bank of New York was the

first bank card to be issued in 1946, but it could only be used locally.

American Express issued the first national charge card in 1958.



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Today, credit cards can be used globally, can involve a number of third

parties, can be used for a wide number of purchases and do not require

the cardholder to maintain an account with the issuing entity.

Types of credit card:

Premium Credit Cards

Cash Back Credit Cards

Gold Credit Cards

Airline Credit Cards

Silver Credit Cards

Business Credit Cards

Balance Transfer Credit Cards

Co-branded Credit Cards

Low Interest Credit Cards

Lifetime Free Credit Cards

Rewards

The Rewards credit cards may be subdivided into Points, Hotels/Travels,

Retail, Auto and Fuels cards.



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Major Credit Card Providers in India

Here are the top major credit card providers in India:

HDFC American Express

ICICI Bank

Axis Bank

SBI

Bank of Baroda

Canara Bank

Citibank

Visa

HSBC MasterCard

Deutsche Bank

Amex

Barclays Bank

Diners Club

Standard Chartered

Kotak Mahindra

CREDIT CARDS PROVIDERS IN VAPI (GUJRAT):-

HDFC

ICICI Bank

Axis Bank

SBI Bank of Baroda

Canara Bank

IDBI



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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.

ICICI bank

Ms. Chanda Kochhar is the Managing Director and Chief Executive Officer of

ICICI Bank Limited. She began her career with ICICI as a Management Trainee in

1984 and has thereon successfully risen through the ranks by handling

multidimensional assignments and heading all the major functions in the Bank at

various points in time.

In 1993 when ICICI decided to enter commercial banking, she was deputed to

ICICI Bank as a part of the core team to set up the bank. When ICICI set up the

Infrastructure Industry Group in 1996 to create dedicated industry expertise in the

areas of Power, Telecom and Transportation sector, she was handpicked and made



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incharge of the Infrastructure Industry Group.

In July 2000, she was chosen to head the Retail Finance division of ICICI and has

been instrumental in scaling up the business. In April 2001, she was promoted as

an Executive Director, heading the retail business in the Bank. In April 2006, shewas appointed as the Deputy Managing Director with responsibility for both

Corporate and Retail banking business of ICICI Bank and from October 2006 to

October 2007 she handled the International and Corporate businesses of ICICI. In

October 2007, she was appointed as the Joint Managing Director & CFO. She was

heading the Corporate Centre, was the Chief Financial Officer (CFO) and was also

the official spokesperson for ICICI Bank.

AXIS bank

Axis Bank Limited is an India-based bank. The Bank operates in four segments:

treasury operation, which includes investments in sovereign and corporate debt,equity and mutual funds, trading operations, derivative trading and foreign

exchange operations on the account, and for customers and central funding; retail

banking, which includes lending to individuals/small businesses subject to the

orientation, product and granularity criterion, and also includes liability products,

card services, Internet banking, automated teller machines (ATM) services,

depository, financial advisory services, and nonresident Indian services (NRI);

corporate/wholesale banking, which includes corporate relationships not included

under retail banking, corporate advisory services, placements and syndication,management of publics issue, project appraisals, capital market related services,

and cash management services, and other banking business, which includes para

banking activities.



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STATE BANK OF INDIA

State Bank of India is an India-based bank. In

addition to banking, the Company, through its subsidiaries, provides a range of

financial services, which include life insurance, merchant banking, mutual funds,

credit card, factoring, security trading, pension fund management and primary

dealership in the money market. It operates in four business segments: the treasury

segment includes the entire investment portfolio and trading in foreign exchange

contracts and derivative contracts; the corporate / wholesale banking segment

comprises the lending activities of corporate accounts group, mid corporate

accounts group and stressed assets management group; the retail banking segment

comprises of branches in National Banking Group, which primarily includes

personal banking activities, and other banking business. As of March 31, 2011, the

Bank had a network of 18,266 branches including 4,724 branches of its five

Associate Banks.

IDBI bank

IDBI Bank Limited (the Bank) is an India-based commercial bank. The

Bank operates in four segments: wholesale banking, retail banking, treasury

services and other banking operations, including operations of joint venture

and subsidiaries. The Bank’s products include deposits, loans, net banking,

online tax payment, real-time gross settlement / fund transfer, phone banking,mobile banking, debit cards, small and medium enterprises finance and

agriculture finance. The services include appraisal, debt syndication, advisory

services, environmental services and securitisation and structured product

services. As on March 31, 2011, the Bank had a network of 816 branches and

1372 automated teller machine (ATMs).



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RESEARCH METHODOLOGY

We as team have used descriptive type of research methodology to find

out customer preferences on cellular services provider. Basically to

know whose services are best& interesting .

Descriptive Research: Descriptive research, also known as statistical

research, describes data and characteristics about the population or

phenomenon being studied. Descriptive research answers the

questions who, what, where, when and how.

Although the data description is factual, accurate and systematic, the

research cannot describe what caused a situation. Thus, descriptive

research cannot be used to create a causal relationship, where one

variable affects another. In other words, descriptive research can be

said to have a low requirement for internal validity.

The description is used for frequencies, averages and other statistical

calculations. Often the best approach, prior to writing descriptive

research, is to conduct a survey investigation. Qualitative researchoften has the aim of description and researchers may follow-up with

examinations of why the observations exist and what the implications

of the findings are. We are using Descriptive Research design to find

out the customer preferences on cellular services provider Primary

Data Collection: In primary data collection, you collect the data yourself

using methods such as interviews and questionnaires. The key point

here is that the data you collect is unique to you and your research and,

until you publish, no one else has access to it. The primary data, which

is generated by the above methods, may be qualitative in nature

(usually in the form of words) or quantitative (usually in the form of

numbers or where you can make counts of words used). We briefly



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outline these methods but you should also read around the various

methods.

There are many methods of collecting primary data and the main

methods include:

Questionnaires

Interviews

Focus group interviews

Observation

Case-studies



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DATA ANALYSIS:-

1. Name the bank of credit card which you are using?

HDFC ICICI SBI AXIS IDBI ANYOTHER

30 20 15 15 10 10

INTERPRETATION- It is found that majority of the people uses HDFC as their

service provider. ICICI obtained second, AXIS and SBI have obtained third

ratings as per the consumer survey.

30%

20%15%

15%

10%

10%

SERVICES

HDFC ICICI SBI AXIS IDBI ANY OTHER



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2. How long have you been using the credit card?

<1 1-2 2-3 >3

20 25 25 30

INTERPRETATION: It is noticed that majority of the customer using services from

more than three years that is 30%.

LESS THAN ONE

YEAR

20%

1-2 YEARS

25%

2-3 YEARS

25%

MORE THAN

THREE YEARS

30%



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3. How did you come to know about this bank credit card?

Self mode Bankers

approach

Relatives Advertisement

10 40 20 30

INTERPRETATION: It is noticed that majority of the customer come to know

about this bank credit card for bankers approach that is 40%, and

advertisements.

SELF MODE

10%

BANKERS

APPROACH

40%

RELATIVES

20%

ADVERTISMENTS

30%



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4. Do you want to be a credit card holder for life long?

INTERPRETATION: It is noticed that majority of the customer wants to be a

credit card holder for life long.

65%

35%

Chart Title

YES NO

YES NO

65 35



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5. The usage of credit card is more important.

STRONGLY

DISAGREE

DISAGREE AGREE STRONGLY

AGREE

3 7 40 50

INTERPRETATION: It is noticed that majority of the customer strongly agrees for

credit cards are most important.

3% 7%

40%

50%

Strongly disagree disagree agree strongly agree

Series1



21

6. Does your bank offers the credit holders an existing range of prizes, special

discounts and privileges?

STRONGLY

DISAGREE


AGREE

15 25 35 25

INTERPRETATION: It is noticed that majority of the customer agrees for bank

offers the credit holders an existing range of prizes, special discounts and

privileges.

15%

25%

35%

25%

strongly diagree disagree agree strongly agree

Series1



22

7. Does your bank gives the proper records of the credit card, credit rate

calculations that are made?

STRONGLY

DISAGREE


AGREE

0 3 47 50


bank gives the proper records of the credit card, credit rate calculations that are

made.

0%3%

47%50%

strongly disagree disagree agree strongly agree

Series1



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8. How would you rate your bank credit card?

STRONGLY

DISAGREE


AGREE

15 15 30 40


rate your bank credit card

15% 15%

30%

40%

strongly disagree disagree agree strongly agree

Series1



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9. Does your bank credit cards are accepted to pay for personal expenses?

STRONGLY

DISAGREE


AGREE

7 13 40 30

INTERPRETATION: It is noticed that majority of the customer agrees for credit

cards are accepted to pay for personal expenses.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

STRONGLY

DISAGREE


AGREE

Series1



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HYPOTHESIS 1:( Chi-square test)

Is there any relation between interest rate and Overall

satisfaction?

Null Hypothesis:

Ho: There is no relation between interest rate and Overall satisfaction.

Alternative Hypothesis:

H1: There is relation between interest rate and Overall satisfaction.

Level of significance –

5%

Degree of freedom- 16

Duration H.S S N D.s H.D.S TOTAL

highly

satisfied

5 7 5 6 5

28

Satisfied 3 5 5 5 5 23

Neutral 4 5 5 4 422

Distasified 3 2 3 5 2 15

Highly dis

satisfied

2 4 2 2 2

12

TOTAL 17 23 20 22 18 100



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highly

satisfied

5

4.760

7

6.440

5

5.600

6

6.160

5

5.040 28.00

satisfied 3 3.910 5 5.290 5 4.600 5 5.060 5 4.140 23.00

Neutral 4 3.740 5 5.060 5 4.400 4 4.840 4 3.960 22.00

distasified 3 2.550 2 3.450 3 3.000 5 3.300 2 2.700 15.00

Highly dis

satified

2

2.040

4

2.760

2

2.400

2

2.640

2

2.160 12.00

TOTAL 17 23 20 22 18 100.00

OBSERVATION EXPECTED O-E

(O-

E)2

(O-

E)2/E5 4.76 0.24 0.06 0.01

7 6.44 0.56 0.31 0.05

5 5.60 -0.60 0.36 0.06

6 6.16 -0.16 0.03 0.00

3 3.91 -0.91 0.83 0.21

5 5.29 -0.29 0.08 0.02

5 4.60 0.40 0.16 0.03

5 5.06 -0.06 0.00 0.00

4 3.74 0.26 0.07 0.02

5 5.06 -0.06 0.00 0.00

5 4.40 0.60 0.36 0.08

5 4.84 0.16 0.03 0.01

2 2.04 -0.04 0.00 0.00

4 2.76 1.24 1.54 0.56

2 2.40 -0.40 0.16 0.07

2 2.64 -0.64 0.41 0.161.28

X2

Cal= 1.28

X2

tab = 26.30



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So, Null hypothesis is accepted. There is no relation between interest

rate and Overall satisfaction.

HYPOTHESIS 2:

Is there any relation between easy to handle and Overall

satisfaction?

Null Hypothesis:

Ho: There is no relation between Network coverage and Overall

satisfaction


H1: There is relation between easy to handle and Overall satisfaction

Level of significance-5%

Degree of freedom-16


highly

satisfied

2 3 2 5 3

15


Neutral 5 6 5 6 5 27


Highly dis

satisfied

3 5 5 5 5

23

TOTAL 17 21 19 23 20 100



28


highly

satisfied

2

2.550

3

3.150

2

2.850

5

3.450

3

3.000 15.00

satisfied 4 2.550 2 3.150 5 2.850 2 3.450 2 3.000 15.00

Neutral 5 4.590 6 5.670 5 5.130 6 6.210 5 5.400 27.00

distasified 3 3.400 5 4.200 2 3.800 5 4.600 5 4.000 20.00

Highly dis

satified

3

3.910

5

4.830

5

4.370

5

5.290

5

4.600 23.00

TOTAL 17 21 19 23 20 100.00


(O-

E)2

(O-

E)2/E2 2.55 -0.55 0.30 0.12

3 3.15 -0.15 0.02 0.01

2 2.85 -0.85 0.72 0.25

5 3.45 1.55 2.40 0.70

4 2.55 1.45 2.10 0.82

2 3.15 -1.15 1.32 0.42

5 2.85 2.15 4.62 1.62

2 3.45 -1.45 2.10 0.61

5 4.59 0.41 0.17 0.04

6 5.67 0.33 0.11 0.02

5 5.13 -0.13 0.02 0.00

2 6.21 -4.21 17.72 2.85

3 3.91 -0.91 0.83 0.21

5 4.83 0.17 0.03 0.01

5 4.37 0.63 0.40 0.09

5 5.29 -0.29 0.08 0.027.79

X2

Cal= 7.79

X2

tab = 26.30



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So, Null hypothesis is accepted. There is no relation between easy to

handle and Overall satisfaction.

HYPOTHESIS 3:

Is there any relation between more security and Overall

Satisfaction?

Null Hypothesis:

Ho: There is no relation between local call service and overall

satisfaction


H1: There is relation between more security and overall satisfaction.

Level of significance- 5%

Degree of freedom-16


highly

satisfied

5 6 5 5 5

26


Neutral 3 5 5 5 5 23


Highly dis

satisfied

3 2 5 2 2

14

TOTAL 17 21 22 23 17 100



30


highly

satisfied

5

4.420

6

5.460

5

5.720

5

5.980

5

4.420 26.00

satisfied 4 3.570 5 4.410 5 4.620 5 4.830 2 3.570 21.00

Neutral 3 3.910 5 4.830 5 5.060 5 5.290 5 3.910 23.00

distasified 2 2.720 3 3.360 2 3.520 6 3.680 3 2.720 16.00

Highly dis

satified

3

2.380

2

2.940

5

3.080

2

3.220

2

2.380 14.00

TOTAL 17 21 22 23 17 100.00


(O-

E)2

(O-

E)2/E

5 4.42 0.58 0.34 0.08

6 5.46 0.54 0.29 0.05

5 5.72 -0.72 0.52 0.09

5 5.98 -0.98 0.96 0.16

4 3.57 0.43 0.18 0.05

5 4.41 0.59 0.35 0.08

5 4.62 0.38 0.14 0.035 4.83 0.17 0.03 0.01

3 3.91 -0.91 0.83 0.21

5 4.83 0.17 0.03 0.01

5 5.06 -0.06 0.00 0.00

5 5.29 -0.29 0.08 0.02

3 2.38 0.62 0.38 0.16

2 2.94 -0.94 0.88 0.30

5 3.08 1.92 3.69 1.20

2 3.22 -1.22 1.49 0.46

2.90



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So, Null hypothesis is accepted. There is no relation between more

security and Overall satisfaction.

X2

Cal= 2.90

X2

tab = 26.30



CONCLUSION: The final conclusion of the study is that hdfc bank credit

card are very much satisfied by the services which HDFC bank provides.

ICICI and SBI have earned the second and third position respectively.

According to survey the customers of ICICI and SBI is also satisfied andon good position.

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