Consumer Behaviour - Services of a bank by an individual depending on few factors like : Need Recognition

1. 1
Group X
Amit Kumar (2017HRLP31)
Ashna Khurana (2017HRLP04)
Archita Pandit (2017HRLP005)
Vivek Tiwari (2017BLP071)
Yasha Agarwal (2017BLP095)

2. Introduction
 Bank X wants to understand the decision making process of a
customer for buying the services of a bank. This study of
consumer behaviour will help them understand the factors that
contribute the most in acquiring a customer by Bank X
 Objective: Understand the below factors of the consumers to
make a decision in buying services of bank
• Understand the buying habits of the consumer
• Need recognition
• Service/features choice
• Level of involvement and brand name
2
Decision making Process for purchase of Services of a Bank by an Individual | Group 10

3. Methodology and Design
 Research used - Descriptive Conclusive research
 Provide information (customer feedback in case of banking services) that
is useful in reaching conclusions or decision-making
 Tends to be quantitative in nature, that is to say in the form of numbers
that can be quantified and summarized
 Target Group – Bank X has targeted diverse groups like students,
salaried people, businessmen & retired citizens
 Sample Size - Sample size of the survey is 50 customers of a bank
 Data Collection – Bank X has used the Questionnaire and survey
method to collect data
 Methodology – To conclude this research, Bank X is analysing the
most relevant factors/services offered by any bank that people look-
out for before choosing to stick with it
3
Decision making Process for purchase of Services of a Bank by an Individual | Group 10

4. Questionnaire4
Decision making Process for purchase of Services of a Bank by an Individual | Group 10
Question Outcome
Gender Preferred service by each gender
Age group Service looked-out at different age
Occupation Service required by different professions
Annual income Service looked-out at different income level
Number of years with bank Trust factor/Brand loyalty
Most preferred
feature/service offered
Decision for choosing/sticking with a bank
Account type Customer’s goal with his/her money
Reason for choosing the
bank over competitor’s
Prominent features looked-out by a customer
Medium of awareness about
a product/service
Advertising channel priority
Satisfaction level Customer retention & trust level

5. Decision Making Process5
Decision making Process for purchase of Services of a Bank by an Individual | Group 10
Awareness
Consideration
Selection
People find banks through
• Advertisements
• Branches
People consider a particular bank
• Through products & services
offered
• Through feedback from others
People finally select at bank when
• Bank’s brand image
• Feedback from other customers

6. Factors involved6
Decision making Process for purchase of Services of a Bank by an Individual | Group 10
 Advertisement – It is a major factor in making people aware about
a bank and the products & services offered by a bank
 Branch density – Number of branches play a major role in forming
the customer base of a bank as many people prefer proximity of a
bank from their homes while choosing a bank
 Products & services offered – Many people look for a range of
products and services offered by a bank before choosing a bank
 Brand image – Brand image plays a major role in shaping the
perception of customers towards preferring a bank over other
 Feedback – Feedback from other customers play a vital role is
shaping the decision making process of customers for choosing a
bank

7. Segmentation Strategy of Bank X7
Psychographic
segmentation
Behavior
segmentation
Demographic
segmentation
More than 40% of customer are with the
bank for more than 10 years
Bank needs to focus on opening new
accounts and developing and building
relationships
32% of the respondents have the
trust factor developed by quick
response & service
Bank should focus on customer
satisfaction
Major share has been occupied by salaried
people & businessmen
More than 50% are less than 30 years of
age
Bank should focus on these customers

8. Bank X planning to influence8
Decision making Process for purchase of Services of a Bank by an Individual | Group 10
Search
Main channel of awareness
is feedback from other
customers. Thus, Bank X
will keep the customers
happy in order to influence
this. This can be done by
providing the customers
with their preferred
services & features
Alternative evaluation
There are a lot of
alternatives that a
customer looks-out for
when it comes to choosing
a bank. Bank can look at
the survey results and
come-up with strategies to
offer the alternatives that
the customer is looking for.
Outlet selection
A lot of banking customers
prefer proximity of the
bank branch from their
homes in order to choose
one bank over another.
Bank should increase their
network in order to
influence the outlet
selection

9. Feedback Methodology
 Automated calls - Telephonic surveys gives higher response, as
bank executives can connect to customers personally and instantly
 Mobile surveys (SMS/Website/email) - As per the researches people
check their phones every 10 minutes. So this is a very effective way
of getting the feedback especially in banking Industry as they
require instant feedbacks
 Feedback forms - This is one of the traditional method of giving
feedback. This method brings the human element back and is also
useful for those customers who are not familiar to technology
9
Decision making Process for purchase of Services of a Bank by an Individual | Group 10

10. Conclusion & Recommendations
 We conclude that the decision making process of an individual in
choosing the services of a bank largely depends on:
 Brand image of the bank
 Services & features offered
 Promotion & advertising
 Proximity of bank branch
 Feedback from other customers
Decision making Process for purchase of Services of a Bank by an Individual | Group 10
10
 Based on our analysis, we recommend Bank X to:
 Promotion & advertising through website, emails, television
 Plan the location of banks wisely to target maximum customers
 Serve the existing customers well to retain them as well as invite more
customers by promoting the bank
 Be flexible enough to offer customised products & services as per individual
needs
 Target younger people who are working professionals

11. Decision making Process for purchase of Services of a Bank by an Individual | Group 10
11