Main Project

Project on CUSTOMER LOYALTY
Executive Summary
The problem of Loyalty is not a problem which has been arisen in few years or which is very young to our economy. This problem can be traced since the origin of the banking system. This problem is faced by the entire financial institute, all over the world. All these institutes face this problem and accordingly prepare themselves to sustain with these problems. The problem of Loyalty is hugely spread over in Indian financial system. These Loyalty issues adversely affect the profitability of the entire financial institute as according so equivalent provisions and steps are to be made. For the stability of any financial institution, it is very important to maximize the level of Loyalty. Considering this scenario of the financial institute in India I have chosen Customer Loyalty as my specialization topic for the training in one of the respectable bank in the area named SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD.
SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [1]
Co-operative banking in India

A CO-OPERATIVE is an autonomous association of person united voluntarily to meet their common economic, social and cultural need and aspiration enterprise. The co-operative bank has a history of almost 100 years. The cooperative banks are an important constituent of the Indian financial system, judging by the role assigned to them. The expectation they are supposed to fulfill their number & the number of offers they operate. The co-operative movement originated in the west but the importance that such banks have assumed in India is early parallel anywhere else in the world. Their role in rural financing continuous to be important even today & their business in the urban areas also have increased phenomenally in recent years mainly due is the sharp increase in the number of primary cooperative bank. While the co-operative banks in rural areas mainly finance agricultural based activities including farming, cattle, and personal finance etc along with some small scale industries & self employment driven activities. The co-operative banks in urban areas mainly finance various categories of people for self employment, industries, small scale units, home finance, consumer finance & personal loans. Though registered under the co-operative society act of respective states the banking related activities of the co-operative banks are also regulated by the reserve bank of India. They are governed by banking regulation law act, 1965. through a jointly owned and democratically controlled
Project on CUSTOMER LOYALTY Co-operative movement is quite well established in India. The first legislation on co-operative was passed in 1904. In 1914 the Maclagen Committee envisaged a three-tire structure of co-operative banking. 1. Primary Agriculture Society at grass root level. 2. Central Co-operative banks at District level. 3. State Co-operative banks at State level. The first urban co-operative bank in India was born nearly 100 years back in Baroda. Co-operative institute are engaged in all kinds of activities namely: 1. Production 2. Processing 3. Marketing 4. Distribution 5. Servicing 6. Banking In the beginning of 20th century, availability of credit in India more particularly in rural areas was almost absent. Agriculture and related activities were starves of organized, institutional credit. The rural people had to entirely depend on moneylenders, who lent money on very high interest rates. In the formative stages co-operative banks were urban co-operative societies run on community basis and their lending activities were restricted to meet the credit requirement of members. Mehta and Bhansali committee first spelled out the concept of urban co-operative bank in SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [4]
Project on CUSTOMER LOYALTY 1939, which defined on urban co-operative bank. With gradual growth in economy the urban banking sector also received tremendous boost and started diversifying its credit portfolio. Besides giving traditional lending activity meeting the credit requirements of their customers they started creating to various sorts of customers finance, viz. self employee, finance, small businessman, finance etc industries, house consumer personal
Categories of Co-operative banks

1. Primary Urban Co-operative banks 2. Primary Agricultural credit societies 3. District central Co-operative banks 4. State Co-operative banks 5. Land Development Banks
Features of Co-operative banks

1. Organizes and managed on principal of cooperation, self-help and mutual help. 2. They function with rule of one member one vote. 3. Does not peruse profit maximization as its main goal. 4. Functions on no profit no loss funda. 5. Lays down its main focus on Agriculture and Rural sector
development.
Historical background of s.b.p.p. bank

Sardar Bhiladwala Pardi Peoples Co-operative Bank Ltd was registered under the co-operative society act on 23rd dec, 1929 & was established on 1st Jan 1930. During those days the farmers, small shopkeepers & the workers of GRUH UDYOG used to borrow money from SAHUKARAS at high rates of interest. Their condition becomes miserable day by day. Their life was rained due to various kinds of exploitations. The establisher of the bank, Late Sardar Khan Bahadur Vikaji Pirojsha Bhiladwala, a farmer & was aware of these problems. He wished to free his peoples from this exploitation. After a lot of thinking, he felt that if a co-operative bank is established in a backward area like pardi.The farmers, small workers, businessman & other people will get a relief from these & thus, the bank came into existence. The working of bank was started on 1st Jan 1930 in Pardi village under supervision of highly knowledgeable manager Mr. Ambalal shah .in the beginning, the bank provide finance to farmer & small businessmen at feasible & low rate of interest bank progressed at a slow & steady pace, observing the progress &good working of bank, the surrounding for the expansion and opening of branches. A new branch was started in Vapi on 17th Oct 1933.
Introduction to s.b.p.p. bank (gunjan branch)

S.B.P.P. Bank of Gunjan branch is located near highway of Vapi (East). This branch was established in 21st Oct. 1990. At that time there 10 people were working in this branch and there was no computer facility available. But today there are 16 people working in this branch of S.B.P.P. Bank excluding peons as well as now the system is fully computerized and the bank is using a special banking software program.
The bank has to inform about all the transaction to its head office at Pardi. The inspection takes place in between on any day within every month duration from RESERVE BANK OF INDIA and head office also inspects at least once in a year.
Today, this bank has 10 branches surrounding with Valsad district giving all facilities to its customers. They believe in ethical value of honesty, democracy, social responsibility, openness & caring for others.
The branches of sbpp co-operative bank ltd are as follows:i. KILLA PARDI BRANCH AND HEAD OFFICE 1930
ii.
VAPI TOWN BRANCH
1933
iii.
UDAWADA (R.S.) BRANCH
1951
iv.
G.I.D.C. BRANCH
1973
v.
PARNERA BRANCH
1978
vi.
KOPARLI ROAD BRANCH
1990
vii.
VALSAD BRANCH
1990
viii.
CHANOD COLONY BRANCH
1997
ix.
BHILAD BRANCH
1998
x.
CHALA BRANCH
1998
Hierarchy Reserve Bank of India

Board of directors Chairman Managing directors Honorary secretary General manager Assistant general manager
Chief accountant Branch manager Officer Clerks Peons
Mission statement
The mission of our community bank is to efficiently increase value for our customers, shareholders, employees and communities. We deliver outstanding and fairly-priced financial products and services to consumers and small businesses in Valsad District. We are always mindful of the fact that our greatest asset is the trust and loyalty of our customers and that our future depends upon our reputation for honesty and fairness.
Vision statements
Year Vision Statements
1931-1980
To concentrate on providing funds at low rate of interest to farmers to protect them from the fund provided by GREEDY SAHUKARS at high rate of interests To concentrate on all the sectors of the society for providing and acquiring funds. This can be done by developing competitive skills to compete with other private and nationalized banks To concentrate mainly on industrial sector for application and allocation of banks funds.
1980-2009
*2010 onwards * represents that the vision of 2010 is yet to be implemented and that the bank is still in the second phase of achieving its vision.
Objectives of S.B.P.P. bank

The objective of the bank is as follows: 1. To give economical & mutual assistance to encourage the members. 2. To do all kind of banking procedures. 3. Businessmen, workers, farmers, industrialist etc. can be members of the bank & they should be given all the possible help they need for their profession. 4. To provide bank guarantee as well as letter of credit. 5. To provide facility of safe deposit lockers. 6. To give loan on gold to the customers of the bank & also to give loan on the steady capital of the bank or on deliverance of cash certificate or on any type of bail. 7. There should be a good collection of funds by lending money to the members of the bank on interest.
SWOT Analysis
Strengths
Project on CUSTOMER LOYALTY Wide branch network A well structured organization Having experience of more than 40 years Skilled human resource SBPP has pioneer advantage, as it started its operation when no other banks operated in such a small town like Pardi Cheque clearing is fast and charges are low
Weaknesses
Lack of innovative product In the modern world of technology all the competitive banks provide online banking systems, but no such system prevails in this organization till date. Customers have to walk in to the bank for even minor issues or for any information as the bank even dont have its own website. No marketing functions are carried out. Not so aggressive in finance.
Opportunities
Has chance to increase the deposits due to its business in a diversified area As the bank has pioneer advantage, it should focus more-n-more on middle class and lower middle class people Can focus mainly on small scale units in the industrial area & so can earn very high return. Capital market is improving so bank can easily get the money or lend the money through call money market.
Threats
Less capable to grow & sustain in a competitive market created by foreign banks Foreign and private banks are the biggest threat towards this organization. Technological changes have become a must in todays market. So the bank to survive in the market has to adopt this new technique. so the banks as well as the staff face a lot of problems adjusting to his new technology.
Organisation Structure
Head Office
Branch Manager
Accountant / Deposit
Accountant / Advances
Sub-Officers
SubOfficer/ Loan
SubOfficer/ Recovery
Clerks Clerks Clerks
Peon
Project on CUSTOMER LOYALTY From the above organizational structure of bank we can say that:
Centralized Organization:
S.B.P.P. bank is a scheduled co-operative bank which ultimately works on the terms and conditions given by the RBI. So the Reserve Bank of India act as a centralized body so this bank is a centralized organization.
Departmentation:
The bank has various branches and are located a different places. In such a case all the activities in a given area of operation are groups into ones, division and branches.
Communication:
Communication within an organization as well as with the head office and other branches is very smooth. Both written and oral communications are there. Normally they communicate with each other within an organization orally where as while communicating with head office or other branches they use written communication also through letters, etc.
Co-ordination:
The level of co-ordination between top level management, middle level management and low level management is very good.
Facilities provided by the bank

Project on CUSTOMER LOYALTY 1. Arrangement in cheques collection and draft drawing system with HDFC bank, ICICI bank, UTI bank, is satisfactorily carried out.
2. F o r
the
convenience
of
the
customers,
bank
has
started
bill
collection of electricity.
3. F o r t h e s t a k e o f s h a r e h o l d e r s , b a n k h a s t a k e n a g r o u p a c c i d e n t
policy and the bank itself pays the premium. 4. Under medical help scheme, shareholders were given the necessary financial help at cost of low premium.
5. B a n k a l s o p r o v i d e s t h e l e t t e r o f c r e d i t f a c i l i t y t o i t s c u s t o m e r s .
6. It also provides the facility of bills discounting.
Different accounting section

1. Current Account:
People opening up with such an account when are in need of frequent transactions with one-another at a distance. Before doing transactions bank asks you to deposit at least an amount of transaction. Bank earns
Project on CUSTOMER LOYALTY commission on each transaction with other banks. S.B.P.P. does not earn commission on transaction with local banks.
2. Savings Account:
Depositing amount in savings account provides safe savings facilities. You are being paid an interest of 3.5% p.a. on your deposited amount.
3. Fixed, Recurring & Special Recurring Account:

This account facilitates of providing different rate of interest for the amount deposited for different periods. These different rates of interests are according to the following conditions.
Period 15 days to 45 days 46 days to 90 days 91 days to 179 days 180 days to 1 year 1 year to 3 years 3 years to above Note: Rate of Interest 5% 5.5% 6% 7% 8.5% 9%
Interest rate for the deposited amount for senior citizens is 1% greater than the ordinary depositors for more than 1 year period.
Lockers
Project on CUSTOMER LOYALTY Bank provides another facility of lockers which section is guard by two watchmen. They ask for deposits at the time of applying and amount of deposit is categorized by the size of the lockers. Charges for this facility are as under.
Deposits 3000/-
Rent (Yearly) 168/253/-
10000/-
337/421/673/842/1010/-
Loan and Advances section

This department functions of providing loan and advances and managing the returns (Interests, Installments and Principle amount) according to the terms and conditions of the Reserve Bank of India. SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [18]
LOAN
Secured Loan
Unsecured Loan
Govt. Security Machinery Loan Vehicle Loan Fixed Deposits Housing Loan Property Loan Business Premises Loan Gold Loan
Personal Surety
Interest on Loan will be charged as under..
Particulars Housing Loan Vehicle Loan Gold Jewellery/ overdraft Govt. Loan / overdraft
Interest 11% 11.5% 10.5% 11%
Project on CUSTOMER LOYALTY Overdraft against Security Any other 1) Upto 2 lakhs 2) 2 to 10 lakhs 3) More than 10 lakhs 12.5% 13.5% 14.5% 12%
Regular interest paid in regular installment then 1% rebate is given. But it is not applicable for housing loan.
Advances
The basic difference between loan and advances is, in advances interest will be charged only on the amount used whereas in loan you are liable to pay interest on full amount you have taken as a loan. It is immaterial in loan whether you have used the amount or not which is materialized in advances. So going for advances is beneficial.
Project on CUSTOMER LOYALTY Advances or overdrafts are provided against security. There are different options to give security which is as under.
1) Hypotheticated (As against Stock) 2) Cash Credit 3) Fixed Deposit 4) Gold 5) Book Debt 6) Government Security
Procedure for taking for loan

The following procedure is undertaken in SBPP bank before sanctioning any loan.
Fill Application form for loan Pre Inspection of application Application presented at board meeting Sanction letter dispatched to party Party gives final letter for taking loan Processing fees taken from the party Advocates search Advocate gives clearance letter Bank signs the equitable mortgage Bank makes register of the party
Service
Project on CUSTOMER LOYALTY A service is an act or performance offered by one party to another. Although the process may be tied to a physical product, the performance is essentially intangible and does not normally result in ownership of any of the factors of production. Services are economic activities that create value and provide benefits for customers specific times and places, as a result of bringing about a desired change in or on behalf of the recipient of the service. Service are those separately identifiable, essentially intangible activities which provide want-satisfaction, and that are not necessarily tied to the sale of a product or another service.
Reasons for growth in Service Industry

Reasons
1) Increasing Affluence 2) More leisure time 3) Higher percentage of women in the labor force 4) Greater life expectancy 5) Greater complexity of products 6) Increasing complexity of life 7) Greater concern about ecology and resource scarcity 8) Increasing number of new products
Example
Greater demand for lawn care, carpet cleaning, and other services that consumers used to provide for themselves. Greater demand for travel agencies, travel resorts, adult education courses. Greater demand for day care nurseries, maid service, away-from-home meals. Greater demand for nursing homes. Greater demand for skilled specialist to provide maintenance for such complex products as cars and home computers. Greater demand for income tax preparers, marriage counselors, legal advisors, employment services. Greater demand for purchased or leased services, such as door-to-door bus service and car rental instead of car ownership. The computer sparked development of such service industries as programming, repair, and time sharing.
The Future of the Service Sector

1) Old Services:
Demand will continue to fall (e.g. Public transport, laundries). However, because these services have a fairly small share in service consumption and output they will have little influence upon services as a whole.
2) New Services:
Demand will be fairly close to the trend of output and income in the overall economy (e.g. health, education, tourism). Private consumer demand for leisure and recreationrelated services may tend to increase faster than personal income if the economy is growing. The resources devoted to new services that are publicly provided (e.g. health, education) will be influenced by political decisions. The complexion of the government in office will clearly influence what share of resources will be devoted to public services, although this decision in turn will be influenced by factors like the general health of the economy and general demographic trends (e.g. the increasing number of old people).
3) Complementary Services:
Demand for these will be influenced by the health of the sectors which use them. If the fortunes of the manufacturing sector improve then intermediate services will grow (e.g. computing, finance, research). If on the other hand manufacturing continues to stagnate then intermediate services will suffer too. Service companies remain optimistic about future profit levels higher profitability is anticipated at just under 58 per cent of firms. Increased revenues and profits are set to support rising levels of capital expenditure.
Project on CUSTOMER LOYALTY INDUSTRYs share in gross domestic product (GDP) is rising up from 24% in 2005-06 to 24.6% last year. A 0.6% rise may not look very impressive, but when considered against 9.4% GDP growth this would indicate an improvement in industrys relative contribution. The value addition in the service sector has largely been in areas which themselves are dependent on the performance of the industrial sector. The share of trade, hotels and restaurants in GDP, for example, has witnessed sharp increase in recent years. The share of transport, storage and communications and that of financing, insurance, real estate and business services too has been increasing rapidly. But the growth in earnings from trade, hotels and restaurants or, for that matter, from financing, insurance, real estate and business can be sustained only if industrial income grows proportionately to support their prosperity.
Competitive Trends for New Millennium

In this highly competitive and dynamic world the service firm needs to be more alert. In order to sustain here the firm needs to have the following criterias and mainly focus more on them: 1) Customer Satisfaction and Customer Focus 2) Value 3) Total Quality Management and Service Quality 4) Emphasis on Service as a Key Differentiator in Manufacturing Firms 5) New Measurement Systems that Link Customer Satisfaction with Financial Goals and Operational Measurements 6) Internationalisation
USERS OF SERVICES
The prospects or potential buyers of services constitute an important place, particularly in the bank marketing. The line of services or product planning and development, the offering of services, the pricing strategies or the interests or costs charged for the services made available and the promotional measures depend on the changing psychology of the actual and potential users. The emerging trends in the level of satisfaction affect the formulation of marketing mix. As for instance, the customers did not claim high rate of interest and other incentives yesterday as they had limited wants and limited avenues for channelizing their savings. But today, the customers prefer refined services and claim for an increased rate of interest as they have copious avenues for channelizing their savings. Like this, the industrial users also demand credit facilities on more liberal terms since there have been numerous changes in the national and business environment. Today, almost all the financial institutions appear interested in linking relationship with the industrial users. This naturally requires a study of the changing psychology of prospects.
Users of Banking Services

1. General Users All persons having an account in the bank and utilizing the banking facilities at the terms and conditions fixed by a bank are termed as general users. 2. Industrial Users Industrialists or entrepreneurs having an account in the bank and utilizing the credit facilities for the establishment or expansion of their business are known as industrial users. 3. Potential Users or Prospects SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [28]
Project on CUSTOMER LOYALTY General or industrial prospects at present not utilizing the services of a bank but are expected to be motivated or induced are termed to be potential users.
MARKETING OF BANKING SERVICES

Marketing of banking services is concerned with product, place, distribution, and pricing and promotion decisions in the changing, socio-economic and business environment. It means organizing right activities and programmes at the right place, at the right time, at a right price with right communication and promotion.
Causes of Bank Marketing

Rising customer needs and expectations due to improvements in general standard of living.
Entry of foreign and private sector banks in India.
Economic liberalization of Indian economy. Phenomenal growth of competition due to economic liberalization.
Rise in the Indian middle class with considerable resources.
Government intervention in protecting the interests of consumers.
MARKETING OF BANKING SERVICES IN THE GLOBALISED SCENARIO - EMERGING CHALLENGES

"Change" is a continuous process and banking industry is no exception to this law which is natural. Due to the implementation of the financial sector reforms and policies for the country change in the banking industry is inevitable. The main aim of the financial sector reforms is to promote an efficient, competitive and diversified financial system in the country. After liberalization and globalization process that was initiated in 1991, the Indian banking industry has undergone tremendous transformation. These changes have forced the Indian banking industry to adjust the product mix and to remain competitive in the globalised environment.
In order to accommodate the changes and challenges that are taking place in the present globalist ion scenario, the Indian banking industry has to re-orient its strategy towards marketing of banking services. New ways and means have to be found to compete in the future and to survive with profit and business growth.
VITAL CHALLENGES
(1) Competition from foreign banks and now new private sector banks: (2) Technological advancement (3) Innovation (4) Diversified Activities SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [30]
Project on CUSTOMER LOYALTY (5) Customer Awareness and Satisfaction (6) Development of skills of Banks Personnel (7) Profitability Nature (8) Corporate Governance
Today, a customer loss is a customer gain for a competitor. With so many competitors, companies need to spend as much energy on retaining as they do on acquiring them. Customer Loyalty
Customer loyalty is a company's ability to retain satisfied customers. Better and faster issue resolution ensures strong loyalty. Information technology can help companies achieve customer loyalty by providing tools for analyzing customer data to assist in informed decision making, and managing customer relationships from the sales process through to fulfillment and support. These four factors will greatly affect your ability to build a loyal customer base: 1. Products that are highly differentiated from those of the competition. 2. Higher-end products where price is not the primary buying factor. 3. Products with a high service component. 4. Multiple products for the same customer.
VALUABLE INSIGHTS TO ACHIEVE CUSTOMER LOYALTY

1. Service Leadership 2. Customer & Employee Satisfaction Studies 3. Performance Management Systems 4. Marketing & Communication Strategies SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [31]
Project on CUSTOMER LOYALTY 5. Service Solutions 6. Customer Relationship Management Systems But above all one should have a systematic strategic plan for improving upon customer loyalty. Though it takes a lot less money to increase your retention of current customers than to find new ones-but normally companies don't give it as much effort as It should because it does take a lot of energy and effort.
If you currently retain 70 percent of your customers and you start a program to improve that to 80 percent, you'll add an additional 10 percent to your growth rate. Particularly because of the high cost of landing new customers versus the high profitability of a loyal customer base, you might want to reflect upon your current business strategy. The four factors will greatly affect your ability to build a loyal customer base: 1. Products that are highly differentiated from those of the competition. 2. Higher-end products where price is not the primary buying factor. 3. Products with a high service component. 4. Multiple products for the same customer.
LADDER OF CUSTOMER LOYALTY
Partner Advocate Supporter Client Customer Prospect
Prospect: The prospect is an individual in a retail market or an organization in the business

market, which fulfils the requirement of the marketers definition of target. For example, a cellular service provider may segment the market and target executives in blue chip companies with a special offer.
Customer: The prospect becomes a customer when s/he gets attracted by the offering of the
marketer and buys the product / service.
Client: A customer becomes a client when s/he purchases the product or service more than
once. While a customer may make the initial purchase as a trial or test, the client is one who does a repeat purchase. It is likely that the trial was a satisfactory experience for the client.
Supporter: A client becomes a supporter when he satisfies with the offering and
recommends it to his friend, relatives and acquaintances. This positive Word Of Mouth (WOM) has tremendous positive impact as it helps the company get new customer. WOM is a most influential source of information in converting prospects into customer.
Advocate: An advocate is a supporter who, in addition to referrals that gives increases sales,
proactively works with the company to improve its product and services. While developing new products software companies regularly depend on the feedback from the lead users of their clients during the Beta test phase. So is a case in new product development situation in several industrial firms, who set up the prototype in their clients premises for usage and feedback, which helps in improvement. In these situation, the level of interaction between the customer and the company is at a much higher plane. There is sharing of vital information and the comfort level as well as the confidence between the parties is high.
Partner: An advocate becomes a partner when they become actively involve in the decisions
of the company. Any relationship that attempts to develop customer value through partnering activities is likely to create greater bonding between customers and marketers. In many cases, there are joint investments resulting in a structural bonding.
360 Approach
Our 360 approach to loyalty management supported by state of art real time loyalty engine provides customers like you the cutting edge tool to stay ahead of competition and supports you SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [35]
Project on CUSTOMER LOYALTY with the business logic and technology essential for implementing and managing a successful loyalty programme.
The platform enables you on a real-time basis to access and analyze data about your customer across multiple transactions and contact locations and provides a 360 degrees insight into valuable information that can help you build real one-to-one relationships with the most important asset of your organization-your customer.
Our loyalty engine seamlessly integrates the key constituents of loyalty programs and enables you to respond to market dynamics with greater speed as you can evaluate campaign performance in real-time
Having been implemented across multiple products and companies, the Honeycomb Loyalty Engine is a secure, robust yet scalable platform that gives you the flexibility to implement loyalty programs for any range of budgets.
Loyalty
According to Oliver Loyalty means deeply held commitment to re-buy or re-patronize a preferred product/service consistently in the future, thereby causing repetitive same brand or same brand set purchasing, despite situational influences and marketing efforts have the potential to cause switching behavior.
Internal Loyalty Attributes

Demographics
Family Status Economics
Socio-
Psychographics Traditions
Customer Loyalty Intensity
SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD.

Career Status Lifestyle
[37]
Internal Attributes Determining Loyalty Orientation For Customers
Industry History
Size Location
Customer Loyalty Intensity
Culture Management Structure
Internal Attributes Determining Loyalty Intensity For Banks
Loyalty Model
Customer commitment has both emotional and rational dimensions, and is the result of meeting multiple and often targeted customer expectations on a consistent basis. The Harris Interactive Commitment Model is a unique and quantifiable framework that can help your enterprise understand and measure the drivers of customer loyalty, including the emotional and rational aspects of customer commitment.
Relationship Diagnostics Corporate Reputation Policies Service Satisfaction Customer Experience
Relationship Conditions
Commitment Dimensions
Loyal Customer Behavior
Trust
Emotional Connection Commit -ment
Retention
Attributes
Share-OfWallet
Product Satisfaction Price/Value
Satisfaction
Rational Connection
Advocacy
Different concepts involved

Customer Churn:
Customer churn is the tendency for customer to move from one competitive provider to another.
Loyalty:
Loyalty has to be defined as an internal intensity of customers towards sticking with or switching from their current supplier-an inherent value. Customer loyalty is when a customer remains as a client of original supplier even if a competitor proposes more advantageous conditions.
Retention:
Retention is the outcome or the event that customers are retained with their current provider.
Benefits
1) Benefits for Bank
Less costly to retain customers than to attract new customers.
Generating Profits Decrease in Marketing Costs Positive Word Of Mouth
2) Benefits for Customers

Functional Benefits Time Savings Convenience Economic Benefits Risk Reduction Social Benefits Relationships SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [41]
Project on CUSTOMER LOYALTY Trust Pleasant Comfortable
Customer Relationship
The CRM approach to marketing has gained much currency in recent years, seeking to establish closer relationships and interactions between a business and its most important customers. CRM-oriented businesses market their products and services through relationships and interactions with multiple markets most notably the customer market, often taking advantage of IT-based interactivity. This is why relationship marketing is termed as customer relationship management when it emphasizes the customer market in particular. Customer Relationship Management has overtaken the market and it is revolutionizing marketing and reshaping entire business models. Relationship marketing is defined as being about establishing, developing, and maintaining successful relational exchanges. Exchanges would take place between the business and important markets, including the customer market.
Customer services can be improved by:

Providing online access to product information and technical assistance around the clock

Identifying what customers value and devising appropriate service strategies for each
customer Providing mechanisms for managing and scheduling follow-up sales calls Tracking all contacts with a customer Identifying potential problems before they occur Providing a user-friendly mechanism for registering customer complaints Providing a mechanism for handling problems and complaints Providing a mechanism for correcting service deficiencies Storing customer interests in order to target customers selectively
Providing mechanisms for managing and scheduling maintenance, repair, and ongoing
support. At the time when Madhav Pura Bank became bankrupt due to Ketan Parekh scam there came a question mark on the continuity of this bank also. This bank had a huge amount of deposits in Madhav Pura Bank. So due to this scam the customers of this bank thought that even this bank will go liquid. Due to which some of the customers due to insecurity started withdrawing their deposits from the bank. But most of the banks customers are its shareholders. Bank at that time had taken insurance policy so they were able to recover this money from that insurance claim and again became stable. So in this manner the bank was able to retain its customers and continue giving services to its customers. Also the customers were convinced that the bank can continue providing service and so the customers who had not withdrawn their money continued using the services and continued their relation with the bank. SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [43]
RELATIONSHIP MARKETING
SHIFT IN FOCUS
PROVIDER PARITY Traditional marketing focus
Product
Price
Promotio n
Place
Customer considerat ion and potential Purchase
CUSTOMER DIFFERENTIATION
C usto S atisfa L oyalt Va

Project on CUSTOMER LOYALTY Customer Experience focus
Marketin g interactio Service interactio n
Sales STRATEGIC VALUE LOYALTY interactio n Support interactio n
Reduced marketing costs
Trade leverage
BRAND LOYALTY
Attracting New Customer
Time to Respond To Competitive Threats Reduced Marketing Cost

Loyal customers minimize the cost of running business because the amount spent on getting new customers is far more than retaining present customers. The higher the loyalty, the easier it is to keep customers happy. Loyal customer becomes an advocate for the brand, without any incentive. Loyalty base of customers, act as a strong entry barrier for potential entrants by which an organization can minimize the risk.
Trade Leverage
Project on CUSTOMER LOYALTY A brand having strong loyalty base force retailers to maintain adequate stock and allot enough shelf space to accommodate the brand. At the extreme, customers shop choice depends on where their preferred brand is available. So, at the retail brands enjoy special recognition and treatment.
Attracting New Customers

Existing loyal customers help marketers to get more business through prospective customers. They create awareness of the brand among friends and colleagues, who develop positive attitude towards the brand by actually seeing the brand in action. Brand image is projected by these customers especially when the product requires after sales service or, prospective customers require assurance of product performance.
Time to Respond to the Competitive Threats

Loyalty base also supports marketers against competitors innovation by providing sufficient time for them to retaliate.
Banking and Loyalty

During the past decade, the financial service sector has undergone drastic changes, resulting in a market place which is characterized by intense competition, little growth in primary demand and increased deregulation. In the new market place, the occurrence of committed and often inherited relationships between a customer and his or her bank is becoming increasingly scarce. Several strategies have been attempted to retain customers. In order to increase customer loyalty, many banks have introduced innovative products and services. In case of Sardar Bhiladwala Pardi Peoples Co-Operative Bank Ltd. They have also introduced certain changes in the services provided by them but along with that they have tried that the basic culture of the bank remains the same. Like they have introduced touch screen computers in the office premises so that it becomes easy and convenient for the customers to check their own balances without depending on the staff members. Banking has traditionally operated in a relatively stable environment for decades. However, today the industry is facing a dramatically aggressive competition in a new deregulated environment. The net result of the recent competition and legislation is that traditional banks have lost a substantial proportion of their domestic business to essentially nonbank competition. Competition will undoubtedly continue to be a more significant factor. Finding a place in this heating sun becomes vital to the long-range profitability and ultimate survival of the bank. Those banks that are not considering the new atmosphere to build and protect their position will likely become victims of that heating sun. In case, of Sardar Bhiladwala Pardi Peoples Co-Operative Bank Ltd. It is also facing similar kind of tough competition from many banks like ICICI, HDFC, SBI, Canara Bank, Punjab National Bank, Andhra Bank, Bank of Rajasthan, Centurion Bank, Axis Bank, IDBI Bank, United Commercial Bank (UCO), Surat Peoples Co-op Bank, Bulsar District Co-op Bank, IndusIND Bank, Dena Bank, Bank Of India, Bank Of Baroda, State Bank of Saurashtra, etc. SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [49]
Project on CUSTOMER LOYALTY situated in nearby areas only. But still it is able to sustain its position and brand image in the mind of the customers as well as other people also.
Banks begin to realize that no bank can offer all products and be the best/leading bank for all customers. They are forced to find a new basis for competition and they have to improve the quality of their own products/services. A bank has to create the customer relationship that delivers value beyond that provided by the core product. This involves added tangible and intangible elements to the core products, thus creating and enhancing the product surrounding. Following are the advantages of it over traditional loyalty building methods:
Reduce advertising cost. Makes it easier to target specific customers by focusing on their needs. Allows organizations to complete for customers based on service, but not on price. Prevents over spending on low-value clients or under spending on high-values.
Positioning is an attempt to distinguish the bank from its competitors along real dimensions in order to be the most preferred bank for certain market segment or in other words, if a bank can position itself favorably within a particular marketplace, relative to competitors, that bank is a competitive one. Competitiveness means that a bank, in terms of its competitive position, its management and marketing strategies, its use of information technology, the quality of its products/services and its ability of managing long term customer relationship must be increasingly responsive to the market consideration and customer orientation. Loyal customers not only increase the value of the business, but also enable it to maintain the costs lower than those associated with attracting new customers. Generally, loyalty has been and continues to be defined as repeat purchasing frequency or the relative volume of the same-brand purchasing.
Customers Bond
According to Berry and Parasuramans conception of customers-seller bond has three levels: LEVEL 1) - Financial bond, which refers to a bond that is tied by price; LEVEL 2) - Social bond, which is refers to a bond that is formed upon a friendship between a customer and service staff; LEVEL 3) Structural bond, which refers to a bond that is formed as result of joint investment by both seller and buyer.
Interactions Between A Bank And Its Customer

These can be grouped into three types: 1) Customer-banks technologies interactions, in this case use of self service machines- like in SBPP Bank the use of touch screen computer to know the balance and other details by the customer himself. 2) Customer-service representative interactions, in this case obtaining personal services such as over the counter services and personal advices- like in SBPP Bank the interaction between the frontline personals and the customers. 3) Hybrid interactions, it is the combination of above two, in case of SBPP Bank they provide the service partly to the customer at their home also like they go to loan holders home for the recovery of the loan amount. Also the customer who is unable to visit the bank for the purpose like withdrawing money then the officer goes to the customers home, takes his signature on the document and provide the money to their messenger. SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [51]
Rise of Service Sector in India

Indian service sector has grown tremendously in the last few years. Today it has been globally recognized for its high growth and development. The fact that in the last 5 years this sector has been growing at an annual rate of about 28 % speaks volumes of its success. At the moment service sector contributes nearly 55% of India's GDP. The government of India is taking major steps to give a boost to this sector. The service sector also contributes heavily on India's foreign exchange. By 2012, it is expected that service exports is also going to be around 6% by 2012, if the annual growth rate of 28% is maintained.
Efforts to Improve the Service Sector

Some of the economists believe that there should be balanced growth between the industrial Sector and the service sector, otherwise the growth of the service sectors will not be sustainable. India should try to eliminate the barriers in other service sectors such as accountancy, retail, postal, and rail transport. Since now the service sector gives rise to more than half the GDP, it is sure to create ripples in the Indian economy in the future.
% share in GDP at constant prices FY07

Hotels & restaurants Communication 1.5% 4.9%
SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. Banking & insurance 6.7% [52] Real estate & business services 7.6%
OBJECTIVE OF THE STUDY
For every problem there is a research. As all the researches are based on some study and my study is also based upon some objective and these are as follows.
To understand the business and products of Sardar Bhiladwala Pardi Peoples Co-
Operative Bank
To study functioning of co-operative bank.
To find out whether people were really aware about this bank.
To find out how much customer are loyal towards this bank.
To find out what respondents expect from this bank.
Research Methodology
Sampling design is one of the most important aspects where the design must be appropriate in order to have the desired result. Sampling design includes various aspect and they are as follows:
Purpose of study Data source Research Method Research Technique Type of Questions No. of Questions Place Sample Population Sample Size Sample Technique
Descriptive Study Primary Data Survey Method Questionnaire Closed Ended 25 Vapi Existing customer of this Bank 100 Convinience Sampling
Different Elements
1) Quality:
Quality is one of the most important factors which have a main role on making a customer loyal or churner. In the banking industry, the product is equal to the service. It means that a customer perceives a service which in the customers view can be the same as a product of another industry. Here I have divided the quality aspects in two parts: a) Tangible Quality: the quality aspects that the customer is able to notice easily like dressings of the employees, neatness of the materials utilized for the required transactions, opening hours of the bank, consideration of the needs and interests of the customers and availability of the services under one roof. b) Intangible Quality: the quality aspects that the customers cant see but can feel it. It includes how their problems are solved by the employees, how fast they get their services done, awareness of the employees about the occurrence of the service, behavior of the employees towards making the customer feel confident and attention paid towards them.
2) Satisfaction:
Satisfaction in banking industry means the product or service which is offered to the customer makes him/her satisfied and meets his/her expectations. This means that the customers feel good to have the service from the bank another time. In the competitive environment which the competitors are trying to have the customers, this antecedent can be vital. By, this company can earn more profit. The direct monetary profit and the indirect one which can be for example advertising by word-of-mouth process, etc., can be the means of profit gaining. It may include factors like meeting the expectations of the customer far better than the ideal bank and also satisfying the customers in accordance to their experiences.
3) Switching Cost:
Switching Cost means the price (internal or external) which the customer should pay for moving from one company or brand and choosing another. There are certain barriers for customers in defection time, so they dont feel that it is simple to move. It includes factors like involvement of time in searching for the information about the other bank before switching over it and risk in choosing and switching over the other bank which again may or may not satisfy the customer.
4) Choosing:
This factor is trying to find the importance of customer choosing power. When a customer decides to choose a company for getting some sort of services, for example a bank to have the financial services, if the selection of that target company is done by considering some factors, then being loyal to that company in the future is more possible and probable. It includes the factors like considering the advantages and disadvantages of the bank before choosing it and it also includes comparison of this bank with the other bank before choosing it.
5) Habit:
Habit is an important factor which 40-60% of the customers purchase the services because of the habitual behavior. In banking industry, habit can be made because of different things which are like family using the same bank, nearness of the bank to the home or the office of the customer, first time used this bank and also used to using the services of this bank.
6) Loyalty:
All of the above factors which are mentioned above are designed to identify the customers loyalty in banking industry. To do so, in addition to the elements which are designed and discussed above, some of the factors are trying to show the loyalty directly. These different factors are customers recommending this bank to others, difficulty in changing, the beliefs, loyalty of that particular customer towards the bank, not changing to other bank because this bank fulfills their needs and their intention towards using its services would not be changed.
These are all the elements which I have used in order to measure the loyalty level of the customer towards the bank.
Question wise Analysis GENDER:
AGE:
OCCUPATION:
1) QUALITY BASED A) TANGIBLE QUALITY 1) This banks employees are in proper form
1 2 3 4 5 0 0 1 36 63
Likert Scale: (1*0) + (2*0) + (3*1) + (4*36) + (5*63) = 462 Interpretation: From the above calculation we can see that majority of the
respondents have given the answer as 4 and 5 so we can say that they think that the employees are in proper form.
2) Materials associated with the services are visually clean, tidy, intact and enough
1 2 3 4 5 3 7 7 42 41
Likert Scale: (1*3) + (2*7) + (3*7) + (4*42) + (5*41) = 411 Interpretation: From the above calculation we can see that here also majority of the
respondents has opted for 4 and 5 so we can say that they even think that the materials that are associated with the service they want to use are visually clean, tidy, intact and enough in quantity.
3) The opening hours of the bank are convenient to me

1 2 3 4 5 1 2 13 43 41
Likert Scale: (1*1) + (2*2) + (3*13) + (4*43) + (5*41) = 421 Interpretation: From the above calculation we can see that here also majority of the
respondents has replied 4 and 5 so we can say that the opening hours of the bank are convenient for them.
4) My needs and interests are considered in the banks services

1 2 3 4 5 0 2 11 46 41
Likert Scale: (1*0) + (2*2) + (3*11) + (4*46) + (5*41) = 426 Interpretation: from the above calculations in this question also major respondents
have replied for 4 and 5 so in this also the respondents feel that their needs and interests are considered in the bank services.
5) I use this bank because all of its services are available in the branch
1 2 3 4 5 0 1 15 40 44
Likert Scale: (1*0) + (2*1) + (3*15) + (4*40) + (5*44) = 427 Interpretation: In this question also majority of the responses are for 4 and 5 so here
also we can say that the respondents say that they use this branch because all the required services are available in this branch.
B) INTANGIBLE QUALITY 1) Employee of this bank solve your problems when they promise to do so
1 2 3 4 5 0 0 8 48 44
Likert Scale: (1*0) + (2*0) + (3*8) + (4*48) + (5*44) = 436 Interpretation: From the above calculation we can say that as majority of the
respondents have replied for 4 and 5 option so we can say that the respondents feel that employees if they promise to solve the respondents problems they do it as early as possible.
2) The employees are fast enough in providing services

1 2 3 4 5 0 0 5 49 46
Likert Scale: (1*0) + (2*0) + (3*5) + (4*49) + (5*46) = 441 Interpretation: From the calculation of this question we can say that here also the
majority of the respondents have replied as 4 and 5 options only so we can say that the respondents feel that the employees are fast enough in providing them services. SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [63]
3) Employees of this bank are aware of when exactly services will be performed
1 2 3 4 5 0 1 19 38 42
Likert Scale: (1*0) + (2*1) + (3*19) + (4*38) + (5*42) = 421 Interpretation: From this questions calculation we can we can say that here the
respondents have said 3, 4 and 5 as their responses so we can say that there are certain respondents who are neutral whereas majority of them are feeling very much that employees are aware about when exactly the services will be performed.
4) The behavior of the employees of this bank instills confidence in customers

1 2 3 4 5 0 0 14 40 46
Likert Scale: (1*0) + (2*0) + (3*14) + (4*40) + (5*46) = 432 Interpretation: Here also there are certain respondents who have opted for option
3 so we can say that they feel moderately whereas the respondents who have opted SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [64]
Project on CUSTOMER LOYALTY for the options 4 and 5 fully feel that the employees of this bank do instills confidence in them.
5) Employees of the bank pay special attention to us

1 2 3 4 5 0 6 12 36 46
Likert Scale: (1*0) + (2*6) + (3*12) + (4*36) + (5*46) = 422 Interpretation: From this calculation also as we can say that some of the
respondents have opted for the option2 are least feeling whereas who opted for option 3 they are moderately feeling whereas the respondents who have opted for the option 4 and 5 are highly feeling that the employees pay special attention whenever they visit the bank.
2) SATISFACTION
1) According to my experiences ,I am satisfied with this bank

1 2 3 4 5 0 1 17 45 37
Likert Scale: (1*0) + (2*1) + (3*17) + (4*45) + (5*37) = 418
Interpretation: From the calculation of this question also the respondents who have
opted for the option 2 feel least whereas who opted for the option 3 moderately feel whereas who all opted for option 4 and 5 highly feel that they are satisfied with this bank according to their experiences.
2) In comparison to other banks, I consider this bank and its services

successful
1 2 3 4 5 0 1 24 40 35
Likert Scale: (1*0) + (2*1) + (3*24) + (4*40) + (5*35) = 409 Interpretation: From the calculation of this question also the respondents who
have opted for the option 2 feel least whereas who opted for the option 3 moderately feel whereas who all opted for option 4 and 5 highly feel that this bank and its services are more better in comparison to other.
3) SWITCHING COST 1) To change to another bank involves investing time in searching for information about other banks
1 2 3 4 5 0 3 28 36 33
Likert Scale: (1*0) + (2*3) + (3*28) + (4*36) + (5*33)

= 399 Interpretation: From the calculation of this question also the respondents who
have opted for the option 2 feel least whereas who opted for the option 3 moderately feel whereas who all opted for option 4 and 5 highly feel it involves high investment of time in searching the information about other banks.
2) To change to another bank involves a risk in choosing another bank which might turn out not to satisfy me
1 2 3 4 5 2 3 32 31 31
Likert Scale: (1*2) + (2*3) + (3*32) + (4*31) + (5*32) = 388 Interpretation: Here as we can see from the table in this question some have
opted for 1 as well as 2 option also so these two group of people are feeling least, respondents who opted for option 3 are feeling moderately whereas who opted for 4 and 5 feel highly that there involves a high risk in choosing another bank and also shifting to another bank would also lead to dissatisfaction.
4) CHOOSING 1) Before choosing a bank I consider its advantages and disadvantages

1 2 3 4 5 1 5 17 44 33
Likert Scale: (1*1) + (2*5) + (3*17) + (4*44) + (5*33)

= 403 Interpretation: In case of this question the respondents who have opted for
options 1 and 2 they say that they dont consider advantages and disadvantages before choosing a bank whereas those who have opted for 3 they may or may not consider them. Similarly those who have opted for 4 and 5 they say that they always consider them before choosing a bank.
2) Before choosing a bank , I compare it with other banks

1 2 3 4 5 1 10 17 44 28
Likert Scale: (1*1) + (2*10) + (3*17) + (4*44) + (5*28) = 388 Interpretation: In case of this question the respondents who have opted for
options 1 and 2 they say that they dont compare the bank before choosing it whereas those who have opted for 3 they may or may not compare. Similarly those who have opted for 4 and 5 they say that they always compare it them before choosing.
5) HABIT 1) I use this bank because my family also uses it

1 2 3 4 5 10 25 21 18 26
Likert Scale: (1*10) + (2*25) + (3*21) + (4*18) + (5*26)

= 325 Interpretation: From the above table we can say that the respondents who have
opted for option 1 and 2 they say that they use this bank because of their own preferences or their own choice whereas those who opted for 3 may or may not be using due to their family using but who all opted for 4 and 5 said that they use this bank just because their family uses it.
2) I use this bank because it is near to my office or home

1 2 3 4 5 8 21 21 28 23
Likert Scale: (1*8) + (2*21) + (3*21) + (4*28) + (5*23) = 340 Interpretation: From the above table we can say that the respondents who have
opted for option 1 and 2 they say that they use this bank because of their own preferences or their own choice whereas those who opted for 3 may or may not be using because of this reason but who all opted for 4 and 5 said that they use this bank just because it is near to their home or office.
3) I use this bank because this is the first bank which I used its services
1 2 3 4 5 4 10 27 34 25
Likert Scale: (1*4) + (2*10) + (3*27) + (4*34) + (5*25) = 366

Interpretation: From the above table we can say that the respondents who have
opted for option 1 and 2 they say that they use this bank because of their own preferences or their own choice whereas those who opted for 3 may or may not be using because of this reason but who all opted for 4 and 5 said that they use this bank just because it is the first bank they have used.
4) I am used to using of the services of this bank

1 2 3 4 5 2 13 15 44 26
Likert Scale: (1*2) + (2*13) + (3*15) + (4*44) + (5*26) = 379 Interpretation: From the above table we can say that the respondents who have
opted for option 1 and 2 they say that they use this bank because of their own preferences or their own choice whereas those who opted for 3 may or may not be using because of this reason but who all opted for 4 and 5 said that they use this bank just because they are used to using its services.
6) LOYALTY 1) I would always recommend my bank to the others

1 2 3 4 5 0 0 5 48 47
Likert Scale: (1*0) + (2*0) + (3*5) + (4*48) + (5*47)

= 442 Interpretation: In this question we can see that majority of the respondent have
opted for the option 4 and 5 so we can say that they are ready to suggest the name of this bank to the others. Whereas few of them have opted for the option 3 also so we can say that these respondents may or may not recommend this bank to others depending upon the situation.
2) It would be difficult to change my beliefs about this bank

1 2 3 4 5 0 2 15 40 43
Likert Scale: (1*0) + (2*2) + (3*15) + (4*40) + (5*43) = 424 Interpretation: In this question we can say that those respondents who have opted
for the option 2 they say that it is easy to change their belief about this bank. But those who opted for 3 they may or may not change their belief about this bank. Whereas those who said option 4 and 5 they said that it is very difficult to change their beliefs about this bank.
3) I am a loyal customer to this bank

1 2 3 4 5 0 1 5 39 55
Likert Scale: (1*0) + (2*1) + (3*5) + (4*39) + (5*55) = 448 Interpretation: Here we can see that the respondents who have opted for 2 say
that they are less loyal towards the bank. Those who have opted for 3 say that they are moderately loyal and those who have opted for 4 and 5 are highly loyal towards the bank.
4) I do not like to change to another bank because this bank sees my needs
1 2 3 4 5 0 2 8 40 50
Likert Scale: (1*0) + (2*2) + (3*8) + (4*40) + (5*50) = 438 Interpretation: In this question we can say that the respondents who have opted for
2 say that they can change to other banks easily if they are not satisfied due to any reason. Those who opted for 3 say that they may or may not change to the other bank depending on the situation and their wish. Whereas those who opted for 4 and 5 say that they would never change to other banks what so ever the reason may be.
5) My intention to use the service of this bank would not be changed

1 2 3 4 0 2 8 42
Project on CUSTOMER LOYALTY 5 48
Likert Scale: (1*0) + (2*2) + (3*8) + (4*42) + (5*48) = 436 Interpretation: In this question we can say that the respondents who have opted for
2 say that it is easy to change their intention about this bank if they are not satisfied due to any reason. Those who opted for 3 say that they may or may not be easy to change their intention about this bank depending on the situation and their wish. Whereas those who opted for 4 and 5 say that they would never change their intention towards this bank what so ever the reason may be.
Habit H6
Loyalty
H1 H2
Tangible quality Intangible quality
H4
Choosing
H5
H3
Switching cost
SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [73] Satisfaction
Hypothesis
Step 1: Ho: Tangible Quality influences Loyalty. H1: Tangible Quality does not influence Loyalty. Step2: Z-Test: Variable
Tangible Quality Loyalty
N
100 100
Mean
4.282 4.384
StDev
0.564 0.522
SE Mean
0.338 0.338
CI
4.944 5.046
Step 3: Table Value: 95% significance Level: Tangible Quality: 3.620

Loyalty: 3.722
Step 4: Comparision: Z Cal>Z Table Tangible Quality: 4.944>3.620 Loyalty: 5.046>3.722 Step 5: Conclusion: Ho accepted at 95% significance level.
Therefore, we can say that Tangible Quality influences Loyalty.
Step 1: Ho: Intangible Quality influences Loyalty. H1: Intangible Quality does not influence Loyalty. Step2: Z-Test: Variable
Intangible Quality Loyalty
N
100 100
Mean
4.302 4.384
StDev
0.525 0.522
SE Mean
0.338 0.338
CI
4.964 5.046
Step 3: Table Value: 95% significance Level: Intangible Quality: 3.640

Loyalty: 3.722
Step 4: Comparision: Z Cal>Z Table Intangible Quality: 4.964>3.640 Loyalty: 5.046>3.722 Step 5: Conclusion: Ho accepted at 95% significance level.
Therefore, we can say that Intangible Quality influences Loyalty.
Step 1: Ho: Satisfaction influences Loyalty. H1: Satisfaction does not influence Loyalty. Step2: Z-Test: Variable
Satisfaction Loyalty
N
100 100
Mean
4.125 4.384
StDev
0.690 0.522
SE Mean
0.338 0.338
CI
4.787 5.046
Step 3: Table Value: 95% significance Level: Satisfaction:

Loyalty: 3.463 3.722
Step 4: Comparision:
Satisfaction: Loyalty:
Z Cal>Z Table 4.787>3.463 5.046>3.722
Step 5: Conclusion: Ho accepted at 95% significance level.
Therefore, we can say that Satisfaction influences Loyalty.
Step 1: Ho: Switching Cost influences Loyalty. H1: Switching Cost does not influence Loyalty. Step2: Z-Test: Variable
Switching Cost Loyalty
N
100 100
Mean
3.920 4.384
StDev
0.831 0.522
SE Mean
0.338 0.338
CI
4.582 5.046
Step 3: Table Value: 95% significance Level: Switching Cost: 3.258

Loyalty: 3.722
Switching Cost: Loyalty:
Z Cal>Z Table 4.582>3.258 5.046>3.722
Therefore, we can say that Switching Cost influences Loyalty.
Step 1: Ho: Choosing influences Loyalty. H1: Choosing does not influence Loyalty. Step2: Z-Test: Variable
Choosing Loyalty
N
100 100
Mean
3.950 4.384
StDev
0.799 0.522
SE Mean
0.338 0.338
CI
4.612 5.046
Step 3: Table Value: 95% significance Level: Choosing:

Loyalty: 3.288 3.722
Choosing: Loyalty:
Z Cal>Z Table 4.612>3.288 5.046>3.722
Therefore, we can say that choosing influences Loyalty.
Step 1: Ho: Habit influences Loyalty. H1: Habit does not influence Loyalty. Step2: Z-Test: Variable
Habit Loyalty
N
100 100
Mean
3.553 4.384
StDev
0.932 0.522
SE Mean
0.338 0.338
CI
4.215 5.046
Step 3: Table Value: 95% significance Level: Habit:

Loyalty: 2.890 3.722
Habit: Loyalty:
Z Cal>Z Table 4.215>2.890 5.046>3.722
Therefore, we can say that Habit influences Loyalty.
Mean and standard deviation Mean:
Tangible Intangible Switching Satisfaction Choosing Habit Loyalty Quality Quality Cost
4.61 4.11 4.19 4.23 4.27 4.34 4.41 4.21 4.34 4.21 4.17 4.08 3.97 3.87 4.03 3.87 3.22 3.43 3.67 3.79 4.43 4.23 4.50 4.39 4.37
Tangible Intangible Switching Satisfaction Choosing Habit Loyalty Quality Quality Cost
0.51 1.01 0.83 0.74 0.78 0.62 0.59 0.78 0.71 0.89 0.73 0.77 0.86 0.94 0.88 0.95 1.33 1.22 1.08 1.05 0.57 0.76 0.64 0.69 0.71
Standard deviation:
Correlation Result
After discussing each factor and questions which are designed to identify them, we will
Loyalty Satisfaction Loyalty Satisfaction Tangible Quality Intangible Quality Switching Cost Choosing Habit
1 0.41
Tangible Intangible Switching Choosing Habit Quality Quality Cost

0.54 0.40 0.21 0.24 0.59 0.26
0.41
0.41
0.37
0.18
0.39
0.54
0.41
0.51
0.32
0.26
0.22
0.40
0.37
0.51
0.30
0.30
0.26
0.21
0.18
0.32
0.30
0.34
0.38
0.24 0.26
0.59 0.39
0.26 0.22
0.30 0.26
0.34 0.38
1 0.45
0.45 1
analyze the correlation between the elements of the loyalty.
By using the statistical analysis, some results show that among the factors, some has more correlation with others. It means that in this case Loyalty and Tangible Quality are more related. All the factors are correlated with each other but the correlation between Loyalty and Tangible Quality is high.. So SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [82]
Project on CUSTOMER LOYALTY the manager should focus more on these factors so that they are able to gain more loyalty from their customers.
Recommendation
As per the study I have come to know that all the factors used by me to find the loyalty level has correlation between them. But the two factors Loyalty and Tangible Quality have the highest correlation. Further as per the results customers gives consideration to both tangible quality. The factors included in the tangible quality are
Dressings of the employees, Neatness of the materials utilized for the required transactions, Opening hours of the bank, Consideration of the needs and interests of the customers Availability of the services under one roof.
So I would like to recommend the Bank to focus more on this factor so that they are able to maintain the loyalty of the existing customers as well as gain more from the future prospects. This will, in my opinion also help the bank to promote itself and spread awareness among the people.
Bibliography
1) Books Referred:
a) Marketing of Services b) Marketing Management c) Business Statistics d) Research Methodology e) Banks Annual Report 5th Edition 12th Edition 14th Edition 8th Edition by- Christopher Lovelock by- Philip Kotler by- Gupta & Gupta by- Cooper
2) Websites Referred:
a) http://www.indianmba.com/Faculty_Column/FC640/fc640.html b) www.pondiuni.org/DDE/Customer%20Relationship%20Management.pdf c) www.mcorponline.com/pdfs/MCorp_Report_FS_Survey.pdf d) http://www.jimnovo.com/Customer-Retention-more.htm e) http://www.indiaprwire.com/pressrelease/other/200805209639.htm f) http://economyreview.blogspot.com/2007/07/india-service-sector-to-ride-high-on.html SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [85]
Project on CUSTOMER LOYALTY g) http://www.tradechakra.com/indian-economy/service-sector/index.html h) http://www.equitymaster.com/detail.asp?date=9/24/2008&story=4
Questionnaire
NAME:______________________________________ GENDER: AGE: MALE 20-35 50-65 Student Businessman House wife i) QUALITY BASED A) TANGIBLE QUALITY 1) This banks employees are in proper form FEMALE 35-50 ABOVE 65 Employee Professional Others
OCCUPATION:
2) Materials associated with the services are visually clean, tidy, intact and enough
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3) The opening hours of the bank are convenient to me
4) My needs and interests are considered in the banks services
5) I use this bank because all of its services are available in the branch
B) INTANGIBLE QUALITY 1) Employee of this bank solve your problems when they promise to do so
2) The employees are fast enough in providing services
1 1 1 1 ii) SATISFACTION 1 1
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3) Employees of this bank are aware of when exactly services will be performed 4) The behavior of the employees of this bank instills confidence in customers 5) Employees of the bank pay special attention to us
1) According to my experiences ,I am satisfied with this bank 2) In comparison to other banks, I consider this bank and its services successful iii) SWITCHING COST 1) To change to another bank involves investing time in searching for information about other banks
2) To change to another bank involves a risk in choosing another bank which might turn out not to satisfy me
1 1 1 v) HABIT
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iv) CHOOSING 1) Before choosing a bank I consider its advantages and disadvantages 2) Before choosing a bank , I compare it with other banks
1) I use this bank because my family also uses it 1 2 3 4 5
2) I use this bank because it is near to my office or home
3) I use this bank because this is the first bank which I used its services
1 1 vi) LOYALTY
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4) I am used to using of the services of this bank
1) I would always recommend my bank to the others
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5 5 5
2) It would be difficult to change my beliefs about this bank
3) I am a loyal customer to this bank
SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD.
4) I do not like to change to another bank because this bank sees my needs
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5) My intention to use the service of this bank would not be changed

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Project on CUSTOMER LOYALTY

SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [1]

Project on CUSTOMER LOYALTY

SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [2]

Project on CUSTOMER LOYALTY

Co-operative banking in India

SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [3]

Categories of Co-operative banks

Features of Co-operative banks

SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [5]

Project on CUSTOMER LOYALTY

Historical background of s.b.p.p. bank

Introduction to s.b.p.p. bank (gunjan branch)

Project on CUSTOMER LOYALTY

SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [7]

Project on CUSTOMER LOYALTY

VAPI TOWN BRANCH

UDAWADA (R.S.) BRANCH

KOPARLI ROAD BRANCH

CHANOD COLONY BRANCH

SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [8]

Project on CUSTOMER LOYALTY

Hierarchy Reserve Bank of India

Chief accountant Branch manager Officer Clerks Peons

SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [9]

Project on CUSTOMER LOYALTY

SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [10]

Project on CUSTOMER LOYALTY

Objectives of S.B.P.P. bank

Project on CUSTOMER LOYALTY

Project on CUSTOMER LOYALTY

Clerks Clerks Clerks

SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [14]

Facilities provided by the bank

6. It also provides the facility of bills discounting.

Different accounting section

SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [16]

3. Fixed, Recurring & Special Recurring Account:

SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [17]

Rent (Yearly) 168/253/-

Loan and Advances section

Project on CUSTOMER LOYALTY

Interest on Loan will be charged as under..

Interest 11% 11.5% 10.5% 11%

SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [19]

SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [20]

Procedure for taking for loan

SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [21]

Project on CUSTOMER LOYALTY

SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [22]

Project on CUSTOMER LOYALTY

SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [23]

Reasons for growth in Service Industry

The Future of the Service Sector

Project on CUSTOMER LOYALTY

SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [25]

SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [26]

Project on CUSTOMER LOYALTY

Competitive Trends for New Millennium

SARDAR BHILADWALA PARDI PEOPLES CO-OPERATIVE BANK LTD. [27]