Customer Orientation of Private and Public Banks in India

Essay add: 28-10-2015, 13:31   /   Views: 124


Growth of service industry can be attributed to the changing life style, changing world, changing industrial economies, changing population and changing technology. There is a drastic change in industrial environment and inter industry relationships because of two vital components i.e. service and information technology. Services are contributing to the development of wide spectrum of business avenues and are offering broader employment opportunities. Information technology has made the world boundary less.

As economies advance, the service industry grows steadily in scale, volume and complexity. In majority of countries 60-70% of GDP value is added by service sector in terms of employment relative to volume, while the share of manufacturing remains in the range of 30-40 percent [Rampal & Gupta 2000]. In industrial countries, services contribute a major share to their national domestic product. This share is generally more than 50 percent of their GDP. In developing and less developed countries, the contribution of services to GDP is generally low. The goods production, including agriculture and extraction is more dominant in developing and less developed countries. But the role of services in their economy is growing at a fast speed.

Aims & Objectives of the Study

The research objective of the project is to "Determine the extent of customer orientation of selected banks and satisfaction of internal customers of bank".


This chapter describes in detail, the procedure adopted to achieve the objectives of the study. The study was conducted in private sector banks to find out the customer orientation in these banks.

The proper procedure followed was:

Research Framework

Scope of Study

Sample design and selection

Method of data collection

Statistical Tools Used

Research FrameworkTo determine the extent of customer orientation of selected banks:

Operational model of Nauman and Shannon (1992) was used to fulfill the first objective. According to them to be customer orientated, an organization should pass through three stages, which were; Bliss, Awarness and Commitment. Organization at 'bliss' stage is comfortable with its current operations and has not established an environment for continued innovations and improvements. An aware organization has all the characteristics of a blissful but is more proactive. Whereas both blissful and aware firms say that customers are important, aware firms actually implement these practices which shows that they mean it. Committed firms actively develop mechanisms for customer involvement comprehensively throughout the firm. So we can understand that bliss is the lowest stage of customer orientation and commitment is the highest stage where as awareness is middle stage of customers orientation.

Some of the identified variables of the three customer orientation stages are as follows.

Bliss:- In bliss stage the firms have not developed a good customer database. They don't know or understand their customers. They always think that customers are satisfied and customers will continue doing business with them. They have some rough data with them about the customers but do not use the same to solve the complaints. They don't understand that the cost of new customer can be five times of acquiring the recent one. They are satisfied with established environment. They do not design customer surveys according to what they think but obtain information what he firms want to hear.


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