“A Survey on Perceived Service Quality of The City Bank

Limited.”
Internship Report on

“A Survey on Perceived Service Quality of The City Bank Limited.”

[This report is submitted for the partial fulfillment of the degree of Bachelors of
Business Administration with major in Marketing]

Submitted to:

Mrs. Thufathun Nessa Chowdhury

LECTURER

SCHOOL OF BUSINESS ADMINISTRATION

EAST DELTA UNIVERSITY

Prepared By:

Nazmul Hydier Neloy

ID: 133006202

Date of Submission- 1.09.2016

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Letter of Transmittal

Date: 1 September, 2016

Thufathun Nessa Chowdhury

Assistant Professor,

East Delta University.

Subject: Submission of the Internship report.

Dear Madam,

It is a great pleasure and privilege to present the internship report titled “A Survey on perceived
service quality of The City Bank Limited.” which was assigned to me as a partial requirement
for the competition of BBA Program.

Throughout the study I tried with the best of my capacity to accommodate as much information
and relevant issues as possible and tried to follow the instructions as you have suggested. I
sincerely believe that it will satisfy your requirements.

I, therefore, pray and hope that you would kindly accept my report and oblige thereby. With
thanks and best regards.

Sincerely Yours,

Nazmul Hydier Neloy

ID- 133006202

School of Business.

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Letter of Endorsement

To Whom It May Concern

This is to certify that, Nazmul Hydier Neloy, ID-133006202, a student of BBA program, Major

in Marketing, School of Business, and East Delta University has completed the internship report

titled “A Survey on Perceived Service Quality of The City Bank Limited.” successfully under

my supervision.

__________________________

Thufathun Nessa Chowdhury

Assistant Professor

East Delta University.

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Acknowledgement

For the very first of all I would like to express my gratefulness and harmony to the GOD, the

supreme authority of the Universe, without whom we would be nothing. Next I would like to

express my kindness to my Beloved Parent whose continuous inspiration enrages me to make a

right move in my life.

Then of all I would like to thank my supervisor Thufathun Nessa Chowdhury without whose

help, suggestion and co-operation the total report will be valueless.

I would also like to express my heartiest gratitude to the Head of Branch & Vice-President S.M.

Tabibur Rahman of CBL, Agrabad Branch, for giving me the opportunity to complete my

internship program in his bank.

Finally, I would like to thank all officials of CBL, Agrabad Branch for their co-operation,

support and love. This is really a nice superior working environment. I do not ever forget this

organization.

At last but not the least, thanks to East Delta University for giving me an opportunity to

complete my BBA degree and give me a scope to gather practical experience and enrich my

knowledge.

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Executive Summary
In today’s competitive banking era to survive & to be successful every bank should focus in

quality control. In long run no organization can survive if they don’t focus on quality control.

This report contains the experiences of my internship in City Bank the main goal of this report is

about unfolding the practices of quality control department of City Bank. First of all, the report

describes about the introduction part of the research. It describes background of the problem,

rational of the problem, scope of the problem and finally describes about the research

objectives. The report includes the literature review of service quality. Then it describes about

the research Methodology. It describes in which method and which approach the research was

carried out. Then it describes the findings of this research as well as analysis part. In findings

part it covers the specific objectives, a questionnaire survey based on service quality of City

Bank. It analyzes the survey as well. Finally after conducting all the part successfully the

researcher ended the study by recommending on the all over report. A small conclusion was

drawn as well.

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Table of Contents

Chapter 1: Introduction ................................................................................................................................ 8

1.1 Title of the Study ................................................................................................................................. 8

1.2 Background of the Problem ................................................................................................................ 8

1.3 Rationale of the Study......................................................................................................................... 9

1.4 Scope of the Study .............................................................................................................................. 9

1.5 Objective of the Study......................................................................................................................... 9

1.5.1 Broad Objective............................................................................................................................ 9

1.5.2 Specific Objective ....................................................................................................................... 10
Chapter 2: Overview of City Bank Ltd. ........................................................................................................ 11
2.1 Background & History ....................................................................................................................... 11

2.3 MISSION, VISION, OBJECTIVES AND CORE VALUES .......................................................................... 13

2.4 Branches of City Bank Ltd. ................................................................................................................ 17

2.5 Organizational Offerings ................................................................................................................... 17

2.6 Major Divisions of City Bank Ltd. ...................................................................................................... 17

2.6.1 General Banking (GB) Department: ........................................................................................... 17

2.6.2 Cash Department: ...................................................................................................................... 18
2.6.3 Credit Department: .................................................................................................................... 18
2.6.4 Service Quality Department: ...................................................................................................... 19
2.7 Agrabad Branch ................................................................................................................................. 24

Chapter 3: Literature Review ...................................................................................................................... 25

Chapter 4: Research Methodology ............................................................................................................. 31
4.1 Types of Research Used in This Study ............................................................................................... 31

4.2 Methods of Data Collection for the Research................................................................................... 31

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4.3 Forms of Analysis used in This Research........................................................................................... 33

4.4 Limitations of the Study .................................................................................................................... 33

Chapter 5: Findings and Analysis .............................................................................................................. 34

5.1 Finding for objective one: ................................................................................................................. 34

5.2 Finding for objective two: ................................................................................................................. 34

Chapter 6: Recommendations .................................................................................................................... 38

Recommendations .................................................................................................................................. 38

Chapter 7: Conclusion ................................................................................................................................. 40

Chapter 8: References................................................................................................................................. 41
Questioner .................................................................................................................................................. 43

List of figures

Figure 1 Expected vs Perceived according to survey .................................................................................. 34

Figure 2 Service rating according to survey ................................................................................................ 35

Figure 3 Service speed rating according survey ......................................................................................... 36

Figure 4 Branch environment rating according survey ............................................................................... 36

Figure 5 Rating the product according to survey ........................................................................................ 37

List of Table
Table 1 The positional hierarchy of CBL ...................................................................................................... 24

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Chapter 1: Introduction

1.1 Title of the Study

The title of the study is “A Survey on Perceived Service Quality of The City Bank Limited.”

1.2 Background of the Problem

Banks, historically, have taken a non-holistic approach to customer management & customer

service, offering products & services which satisfied the banks rather than the customer’s needs.

Retail banks today recognize that this can no longer be the case. They must be able to react to the

individual customer’s requirements for flexible, customized services & products those can be

accessed through multiple channels. In other words, they must be competitive in a competitive

market.

Service quality excellence approach has some benefits like over time; retail bank’s customers

tend to increase their holding of the other products from across the range of financial products/

services available. Long-term customers who experienced good service excellence are more

likely to become a referral source. The longer a relationship continues; the better a bank can

understand the customer & his/her needs & preferences, & so greater the opportunity to tailor

products & services & cross-sell the product/service range. In Bangladesh, City Bank has been

one of the few banks in introducing & implementing service quality with a team involved with

this very activity in its operation. Though their methods & technologies have not been up to the

international standards lately, they are trying to improve it to compete with the other banks in

Bangladesh. This report is about studying the Service Quality program employed by City Bank

to retain its customers.

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1.3 Rationale of the Study

Service Quality is the most important tool in service industry to retain old customers & attract

new ones. Therefore, anybody interested in joining the service industry such as- banking sector

should have a clear idea about Service Quality & its effect on the industry. Thus, this topic was

being chosen. This study will give us an overview on the perceived service quality of the City

Bank.

1.4 Scope of the Study

The scope of the study is very limited. The whole research was being carried out based on the

data collected from The City Bank LTD, Agrabad branch. The researcher would have preferred

to collect & analyze data from Agrabad branch of The City Bank LTD (From hereon also

referred to as CBL) but Service Quality is a very large topic & there was a huge time constraint.

Moreover, there was no secondary data or previous research available on this topic.

1.5 Objective of the Study

The general objective of this research was to fulfill the internship requirement for the graduation

of BBA. However, there were specific objectives which can be divided into two parts-

1.5.1 Broad Objective

The broad objective of the research is to gather “A Survey on Perceived Service Quality of The

City Bank Limited.”

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1.5.2 Specific Objective

The specific objective of the research are-

 To specify the difference between expected service quality and perceived service quality.

 To identify the present status of CBL’s service quality based on primary data.

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Chapter 2: Overview of City Bank Ltd.

2.1 Background & History

City Bank is one of the oldest private Commercial Banks operating in Bangladesh. It is a top

bank among the oldest five Commercial Banks in the country which started their operations in

1983. The Bank started its journey on 27th March 1983 through opening its first branch at B. B.

Avenue Branch in the capital, Dhaka city. It was the visionary entrepreneurship of around 13

local businessmen who braved the immense uncertainties and risks with courage and zeal that

made the establishment & forward march of the bank possible. Those sponsor directors

commenced the journey with only Taka 3.4 crore worth of Capital, which now is a respectable

Taka 330.77 crore as capital & reserve. City Bank is among the very few local banks which do

not follow the traditional, decentralized, geographically managed, branch based business or

profit model.

Under a real-time online banking platform, 4 business divisions are supported at the back by a

robust service delivery or operations setup and also a smart IT Backbone. Such centralized

business segment based business & operating model ensure specialized treatment and services to

the bank’s different customer segments.

The bank currently has 87 online branches and 10 SME service centers spread across the length

& breadth of the country that include a fully fledged Islami Banking branch. Besides these

traditional delivery points, the bank is also very active in the alternative delivery area. It

currently has 46 ATMs of its own; and ATM sharing arrangement with a partner bank that has

more than 550 ATMs in place; SMS Banking; Interest Banking and so on. It already started its

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Customer Call Center operation. The bank has a plan to end the current year with 100 own

ATMs.

The City Bank LTD is the first bank in Bangladesh to have issued Dual Currency Credit Card.

The bank is a principal member of VISA international and it issues both Local Currency (Taka)

& Foreign Currency (US Dollar) card limits in a single plastic. VISA Debit Card is another

popular product which the bank is pushing hard in order to ease out the queues at the branch

created by its astounding base of some 400,000 retail customers. The launch of VISA Prepaid

Card for the travel sector is currently underway. City Bank has launched American Express

Credit Card and American Express Gold Credit card in November 2009. City Bank is the local

caretaker of the brand and is responsible for all operations supporting the issuing of the new

credit cards, including billing and accounting, customer service, credit management and charge

authorizations, as well as marketing the cards in Bangladesh. Both cards are international cards

and accepted by the millions of merchants operating on the American Express global merchant

network in over 200 countries and territories including Bangladesh. City Bank also introduced

exclusive privileges for the card members under the American Express Selects program in

Bangladesh. This will entitled any American Express card members to enjoy fantastic savings on

retail and dining at some of the finest establishment in Bangladesh. It also provides incredible

privileges all over the globe.

City Bank is one of the largest corporate banks in the country with a current business model that

heavily encourages and supports the growth of the bank in Retail and SME Banking. The bank is

very much on its way to opening many independent SME centers across the country within a

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short time. The bank is also very active in the workers’ foreign remittance business. It has strong

tie-ups with major exchange companies in the Middle East, Europe, Far East & USA, from

where thousands of individual remittances come to the country every month for disbursements

through the bank’s large network of 97 online branches. The current senior management leaders

of the bank consist of mostly people from the multinational banks with superior management

skills and knowledge in their respective “specialized” areas. The newly launched logo and the

pay-off line of the bank are just one initial step towards reaching that point.

City Bank prides itself in offering a very personalized and friendly customer service. It has in

place a customized service excellence model called GAP (Graceful-Appropriate-Pleasing) that

focuses on ensuring happy customers through setting benchmarks for the bank’s employees’

attitude, behavior, readiness level, accuracy and timelines of service quality.

The City Bank Limited was one of the 12 Banks of Bangladesh among the 500 Bank in Asia for

its asset, deposit & profit as evaluated by “Asia Week” in the year 2000. Other than that, The

City Bank Limited received the “Top Ten Company” award from the prime minister of the

People’s Republic of Bangladesh.

2.3 MISSION, VISION, OBJECTIVES AND CORE VALUES

Mission:

 Offer wide array of products and services that differentiate and excite all customer

segments

 Be the “Employer of choice” by offering an environment where people excel and leaders

are created

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 Continuously challenge processes and platforms to enhance effectiveness and efficiency

 Promote innovation and automation with a view to guaranteeing and enhancing

excellence in service

 Ensure respect for community, good governance and compliance in everything we do

Corporate Mission of City Bank Ltd.

 To contribute to the socioeconomic development of the country

 To attain the highest level of customer satisfaction through extension of services by

dedicated and motivated team of professional

 To maintain continuous growth of market share ensuring Quality

 To maximize bank’s profits by ensuring its steady growth

 To maintain the high moral and ethical standards

 To ensure participative management system and empowerment of Human Resources

 To nurture an enabling environment where innovativeness and performance is rewarded.

Vision:

 The Financial Supermarket with a Winning Culture Offering Enjoyable Experiences

Corporate Vision of City Bank Ltd:

 To be the leading bank in the country with best practices and highest social commitment.

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Values:

 Result Driven

 Accountable & Transparent

 Courageous & Respectful

 Engaged & Inspired

 Focused on Customer Delight

Long-term objective:

 To be the market leader both in terms of deposits and good loans among private

commercial banks by 2025.

Short-term objective

 To increase current market shares at least 5% by 2015.

 To increase its number of branches to 100 by 2017.

Goals

 Become the most profitable bank.

 Provides highest level of satisfaction to customers.

 Enhance the value of shareholders investments and optimize return on their investment.

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Strategic Intent

Bring out new financial products and to ensure that customers receive a consistent standard

quality of service.

Business Strategies

 Achieve business vision through quality and customer acceptance by providing financial

services.

 Maintain highest ethical standards in every aspect.

 Customer focus – a perspective of quality throughout:

 The entire organization or each department and bank.

 All processes, systems and services.

 Compliance – with regulatory requirements.

 Added value – through continuous improvements to benefit customers and the bank.

Core values

 Our shareholders: By ensuring fair return on their investment through generating stable

profit.

 Our customer: To become most caring bank by providing the most courteous and

efficient service in every area of our business.

 Our employee: By promoting the well-being of the members of the staff.

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 Community: Assuring our socially responsible corporate entity in a tangible manner

through close adherence to national policies and objectives.

2.4 Branches of City Bank Ltd.

From the year 1983-2016 CBL established 102 numbers of branches in different districts of

Bangladesh. The principal branch is located in Jiban Bima Tower 10 Dilkusha CIA,Dhaka

Dhaka, Dhaka Division 1000, Bangladesh.

2.5 Organizational Offerings

CBL is always alert to the changing needs of customers & strives to develop new & improved

services for its valued customers. CBL offers various deposit & lending products & services to

meet all kinds of financial needs of customers such as-

 Maintain all types of accounts.

 Make investments.

 Handle all types of Foreign Exchange Business.

 Intend other banking sectors

2.6 Major Divisions of City Bank Ltd.

2.6.1 General Banking (GB) Department:

Some of the day-to-day activities of this department are the followings:

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 Account opening.

 Issuance of cheque.

 Receiving cheques for clearing, transport and dispatch.

 Issuance of TT (Telegraphic Transfer), PO (Pay Order), DD (Demand Draft), etc.

 Opening and maintaining FDR and other scheme deposits.

 Fund transfer.

 Closing and transfer of accounts.

 Maintaining the lockers of the bank.

 Outward clearing of IBC and OBC.

 Maintaining on-line voucher.

2.6.2 Cash Department:

This department is responsible for cash payment and receipt. The employees in this department

are also liable for computer posting, passing cheques, PC Bank Management and accuracy of

posting, balancing on-line accounts, etc.

2.6.3 Credit Department:

This department is responsible for the following jobs:

 Meeting the requirements of existing and potential customers.

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 Meeting the requirements of Head Office and customers of General Credit to cooperate

with other departments for smooth operation.

 Preparing CIB statements.

 Preparing credit proposal and statement.

 Administration of retail credit.

2.6.4 Service Quality Department:

Customer Says Survey Through Phone Calls:

Customer’s Say Survey is a phone based survey to collect customer’s response about branch

staff’s behavior, service assistance, availability of demanded products and services to improve

service standard. Customer’s Say Survey is done on a monthly basis. The total customer base is

divided into many zones and thus the survey gets completed. After conducting the survey the

result is analyzed and the customers are divided according to their satisfaction level. The follow

up call is given to those customer to find either their satisfaction level is

same/increased/decreased. Retention call is also made for the dissatisfied customers.

City Branch Banking Survey:

City Branch Banking Survey is a direct interview of customers conducted during branch visit to

know customer’s opinion about branch service and improving it accordingly. City Branch

Banking Survey is done on a monthly basis depending on the visit made by SQ team to different

branches. The survey also has been conducted by Service Ambassadors placed at different

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branches. The results are then summarized and communicated with concerned branches and

departments for necessary work to be done.

Telephonic Surveys of Branch Staffs on Etiquettes

Telephone Answering and Call Technique (TACT) is a phone based survey of branch personnel

which is done by calling them in the branch land phone for measuring and improving the

telephone answering skill. TACT is done twice a month with different branches covered in every

month. After conducting the survey the result is analyzed and counseling is given to those

employees, who made a poor score. After that a follow up call is given to find out the

improvement.

Call Center Agent Survey:

The city banks call center agents handle lots of customer calls every day. So it’s very important

to the call center agent to know about products and features. The City Bank LTD they doing

some survey on call center agent or staff for measure the level of knowledge and improvement

about products and features.

Online Quiz:

The City Bank Ltd arrange online quiz to theirs to their staff’s. The customer service department,

RM department, Teller department, Service delivery department and Branch operation

management are the part of this online quiz. Service quality department arrange this online quiz

once in a month. This quiz is always updated on new product, feature. In that way they improve

their stuff’s knowledge about product and features.

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Complain Handling and Its Proper Resolution:

Its conduct by service quality department to ensure the customer service satisfaction. They work

with every customers complain about service, product, etc. customer can complain through

email, latter, phone, facebook etc.

City Icon Award for Top Service Providing Branch:

City icon ceremony held by service quality department to award the best performance branch, in

different SQ initiative like online quiz, TAG, customer say survey employee of the month. This

award provide in a year. This award is a great tool for the branch to improve their service

standards.

Employee of the Month:

The best performing employee of each branch are awarded by service quality department. The

top performer of each month based on their business performance, online quiz, timely attendance

and branch managers score. This kind of activates are motivate the branch staff and improve the

service in banking service.

Queue (token machine):

It’s an electronic queue management in metro branches. The customer enjoys the token system to

achieve the branch service with the help of the branch peon or service ambassadors. By doing

this the customer are not stand any line or queue, at the same time they enjoy short time service

without any hassle. Service quality department weekly report that which branch serves how

many customers, how long they take to serve the customer.

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Advance Web Token Service:

Here the customer takes the token in advance by using web or internet. It helps customer to take

short time services and save their valuable time.

Video Surveillance:

Service quality department monitor the branch activities throughout the day or banking hour

without being present at the branch directly from head office. The daily report of video

surveillance is published by service quality. This is help to improve the branches premises

service and CRP (Customer Relationship Program) guideline.

Branch Visit:

Branch visit is carrying out regularly by the service quality team. The reason behind the branch

visit is

 To see the premises of the branch

 How the branch provide the service to the customer

 To see how the employee serve the customer.

Tele Focus Group Discussion with Different Branch:

Service quality department conduct tele focus group discussion over the phone with different

branches.

 They talk about the branches different issue.

 Talk about branch staff’s problem.

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 Talk about branch premises problem.

Service Ambassador:

Service quality has introduced the service ambassador in different branches of The City Bank

LTD. Those ambassadors are playing significant role and welcoming, assisting the customers in

The City Bank LTD.

Royalty Campaign:

Service quality department has design customer interactive campaign through branch which

includes book donation tree plantation, blood donation, cleanness etc.

SMS Notification:

Service quality department send sms to the customer for delivering the card, different offers

providing from the bank.

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2.7 Agrabad Branch

The positional hierarchy of CBL, Agrabad Branch

1. SAVP & Branch Manager

2. FAVP & 2nd Man

3. Senior ExecutiveOfficer

4. Executive Officer

5. Senior Officer

6. Assistant Officer

7. Trainee Assistant Officer

Table 1 The positional hierarchy of CBL

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Chapter 3: Literature Review

Customers’ expectations and needs is a driving force for managements to provide quality service

to current customers as well as to attract new customers. Due to competiveness in the

marketplace, customers' expectations are always elevated and becoming more demanding.

SERVQUAL has become a popular area of academic research and has been acknowledged as an

observant competitive advantage and supporting satisfying relationships with customers

(Zeithmal, 2000). Service marketing was the precursor leading to the study of service quality.

Pioneer research in this area (George and Barksdale, 1974) identified several distinct differences

between the marketing of “service” firms and “manufacturing” firms. It was Shostack’s (1977)

research that brought to the fore the distinct nature of services marketing. She noted that services

were intangible, rendered, experienced, and unable to be stored. Consequently, her conclusion

was that services should be marketed differently from tangible products. It was her early work

that gave equal weight to the components of “service” as it did to “product.” Her research

concluded that service marketing strategies should deal with specific issues related to distinct

elements within each product. She also concluded that changes in any single element could

impact other elements within the function, and as such, services marketing should consider

products more holistically, meaning to look at each item on its merits alone.

Enis and Roering (1984) were unconvinced that there is a distinction between service marketing

and manufacturing marketing. It was their conclusion that the strategies used for all product is

strictly a “bundle of benefits” regardless of whether they are tangible or intangible.

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Relationship between Customer Satisfactions and Service Quality in Service Product

The principal study by Zeithaml, et al (1985) fostered a direct relationship between customer

satisfaction and service quality and broadened the unique characteristics of service products.

They explained that service in its production sense and consumption occur simultaneously.

Production and consumption of service products cannot exist in isolation, requiring them to be

simultaneously produced and consumed. Additionally, they suggest that service production and

consumption is by its own nature heterogeneous. Their research was significant in that it

highlighted the differences between manufactured products and service products, and it

introduced the interrelationships between customer service and customer satisfaction through the

measurement of gaps.

Customer Satisfaction

A key aspect in customer satisfaction is the way a customer can attain satisfaction or

dissatisfaction with a company’s service. If a company wants to satisfy its customers the first

question it needs to answer is what is it that’s satisfies customers and, equally important, what is

it that makes customers dissatisfied with the company and its products and services. Satisfying

customers depends on the balance between customers’ expectations and customers’ experiences

with the products and services (Zeithaml et al., 1990). When a company is able to lift a

customer’s experience to a level that exceeds that customer’s expectations, then that customer

will be satisfied. Because customers have ever increasing expectations it is necessary for

companies continuously to improve their quality and hence customers’ experiences with the

company. The issue is what should be improved to keep the customers satisfied. What customers

experience is not just one simple aspect of a company, but a whole range of aspects. Some of

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these aspects are concerned with the way customers experience the company itself, some are

concerned with the way customers experience the physical product and, finally, some are

concerned with the way customers experience the service the company offers.

Comparing customers’ expectations and their perceptions of actual performance can be done by

making use of the SERVQUAL scale of Berry, Parasuraman and Zeithaml (Zeithaml et al.,

1990).

Service Quality

Recent debates in the marketing literature regarding the service quality concept have raised

important issues for both academics and practitioners. Leading researchers in this area, including

Parasuraman, Zeithaml, and Berry (1994), Cronin and Taylor (1992, 1994) and Teas (1994),

have provided significant but sometimes conflicting insights into related conceptual,

methodological, analytical, and practical issues. Although marketing scholars have proposed

additional research on many of these issues, there has been little research on the generalizability

of such findings across countries, especially those with developing economies. The four

alternative measures of service quality (SERVQUAL, importance weighted SERVQUAL,

SERVPERF, and importance weighted SERVPERF) were tested by taking the 22 expectation

and performance measures from the SERVQUAL scale (Parasuraman, Zeithaml, and Berry

1988) and adapting the importance weights used by Cronin and Taylor (1992). These 22

expectation and performance items measure perceptions regarding five factors believed

important in service quality: reliability, responsiveness, empathy, assurance, and tangibles.

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The Importance of Service Quality Measurement in Banks

While there has been considerable research in the area of service quality, there are a number of

fields in which a thorough examination of the service gaps has not been conducted, such as the

subject study that will address this important measure from the standpoint of empirical studies of

perceptions versus expectations. Banking in a Developing or Developed country is one of those

areas in which a thorough examination of gaps between customers’ expectations and bankers’

perceptions of what the customer expects have not been thoroughly examined. Additionally, gaps

between customers’ expectations and actual services delivered are an area ripe for study. Why is

service such an issue in banking? Berry, et al (1988) noted that most financial institutions are

alike in the services provided to their customers. Likewise, he noted that their prices are

generally comparable, and in fact might look similar in design, but where they differed was in

the level of service provided to their customers. As financial institutions grow, there is a

tendency for service to give way to volume delivery to enhance profitability. These large banks

appear to have mistakenly concluded that quality service caused profits to erode. It would appear

that service quality could make a difference according to Lewis (1993), who noted that service

quality leads to reduced costs, increased profitability, and other beneficial elements. In answer to

critics, she noted that there was often an initial cost to implement quality service, but the

resultant benefit and subsequent increase in profits offset those start-up costs.

Acquiring customers and having them leave is not only disconcerting, it is counterproductive and

a profit drain on the organization. One of the principal reasons for customers to leave an

organization is poor service delivery. Avkiran (1994) indicated that a telephone study in the

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Australian state of Victoria revealed poor service to the customer as the most likely reason for

customers to consider moving their banking relationships. He observed that service basically had

two levels. The first level was desired service, which the customer desires, and the second level

is known as adequate service, which is the minimum level the customer will accept. His research

led to concluding that developing a “true customer franchise” requires firms to exceed both

levels of desired service and acceptable service. Coyne (1989) takes the opposite stance on

service quality, which he states as follows:

“There appear to be thresholds of service for affecting customer behavior… When satisfaction

rose above a certain threshold, repurchase loyalty climbed rapidly. In contrast, when satisfaction

fell below a different threshold, customer loyalty declined equally rapidly. However, between

these thresholds, loyalty was relatively flat. I believe this twin threshold framework applies to a

wide variety of service situations. (Coyne. 1989: page 70).

While Coyne makes an interesting case for a lack of loyalty other than the extreme limits of

service quality, his arguments are easily refuted as it relates to American banks by Finch and

Helms (1996) who noted that the delivery of superior service is the best means for satisfying and

consequently retaining customers. Further, a two nation study of banking services by Witkowski

and Keliner (1996) noted that American bank customers rank their American banks’ services

higher than German bank customers rank German banks’ services, but they also noted that

service expectations by the customers is considerably greater in American banks.

In a slightly different approach, but equally as compelling, (Beckett, et al 2000) noted that

consumers change their buying habits more frequently due to the rigid structure of many

financial institutions today at the expense of service to the customer. It was noted by Bahia and

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Nantel (2000) that there are no publicly available standard scales for measuring perceived quality

in banks. It seems apparent from the studies that service quality is extremely important to an

organization or a bank, but the dilemma seems to be how to accurately and reliably accomplish

such measurement. The primary focus of this study is to seek such a means to measure service

quality.

After reviewing the above literature there is a research gap found in this study. There have been

many works related to service quality at many organizations in banking industry but there is no

similar research done or accomplished previously by City Bank LTD in such premises.

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Chapter 4: Research Methodology

4.1 Types of Research Used in This Study

According to Kothari, research design can be classified into three traditional categories -

 Exploratory

 Descriptive

 Casual

Out of these three types, in this study the researcher has descriptive type. Descriptive research is

use to descriptive and to conduct survey investigation It is usually conducted when the researcher

wants to know characteristics of population or phenomenon. (Kothari, 2009).

The general objective of this research was to learn about the service quality department activities

at CBL and keeping in consistence with Kothari’s (2009) definition of descriptive research, The

researcher gathered the data by conducting personal interviews and questionnaire survey with the

customer to get an overall idea of CBL’s service quality. Therefore, the type of research used in

this study is descriptive.

4.2 Methods of Data Collection for the Research

There are two major ways of collecting data for business research. Those ares-

 Primary data

 Secondary data

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Primary data are originated by the researcher for the specific purpose of addressing the problem

at hand. It requires the involvement of the researcher. Sources of Primary Data are –

 Personal observation.

 Face to face conversation with officers & clients.

 Daily note taken during the internship.

 Questioner

On the other hand, Secondary data are the data previously collected and assembled for some

project other than the one at hand. Secondary data can be collected from –

 Articles

 Journals

 Internet

 Annual report etc.

Here, the researcher has collected both primary and secondary data for the purpose of the

research. Primary data has been collected through questionnaire and personal interview with the

bank manager and employees. The Findings and Analysis chapter of this report has been

prepared based on primary data. Whereas, information such as – company overview, mission

statements and quality statements have been collected from the website of MBL. These are the

secondary data.

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4.3 Forms of Analysis used in This Research

The analysis of the data collected for the data collected for the research can be done in three

ways -

 Qualitative analysis

 Quantitative analysis

 Triangulation

In this report, Triangulation analysis has been used to analyze primary data.

4.4 Limitations of the Study

There were some limitations of the report –

 It was very difficult to collect data as there was no specific literature provided from the

bank. All the data had to be collected through personal interviews.

 There were no previous publications, facts and figures available on this topic. These

constraints narrowed the scope of accurate analysis.

 It was not possible to get all sorts of information due to official confidentiality.

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Chapter 5: Findings and Analysis

5.1 Finding for objective one:

Was the service as per your expectation?

According to the survey Question researcher found 60% people says they get services as their

expectation. On the other side 40% people says they couldn’t get services as their expectation.

So from this scenario, the researcher observed that there is a gap of expected service & perceived

service. Customer didn’t get the services as they expected from the bank.

Expected vs Perceived

40% yes
no
60%

Figure 1: Expected vs Perceived according to survey

5.2 Finding for objective two:

How would you rate the overall services of this branch?

By this question researcher found out of 100 people, 30% people rate the overall services of the

Agrabad branch services as good, 35% people rate the overall services of the Agrabad branch

services as average, and 35% people rate the overall services of the Agrabad branch as poor. So

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from this scenario, the researcher observed that there is a gap of expected service & perceived

service.

Service Rating
35% 35%

30%

Good Average Poor

Figure 2: Service rating according to survey

What do you thing about the service speed?

In this question researcher found 28% people rate the service speed as good, 32% people rate the

service speed as average, and 40% people rate the service speed as poor. So from this scenario

the researcher observed that there was a service delivery gap. The service was not delivered as

promised quality. The reasons might be in this case, lack of sufficient support from frontline staff

or performance variability of the employees.

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Service Speed
42%

30%
28%

Good Average Poor

Figure 3: Service speed rating according survey

How would you rate the premises of this branch?

According to this question researcher found 60% people rate the premises of the Agrabad branch

as good, 35% people rate as average, and 5% people rate as poor.

Rate the Enviroment of The Branch

60%

35%

5%

Good Average Poor

Figure 4: Branch environment rating according survey

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Which of our product/ you like the most?

According to the survey researcher found 36 people say they like CASA(CURRENT

ACCOUNT, SAVINGS ACCOUNT), 10 people say they like FDR, 6 people say they like loan,

48 people say they like AMEX(American Express) card. Here we see that AMEX card is most

popular product.

Rate the Product

36%
48%

10%
6%

CASA
FDR
Loan
AMEX

Figure 5: rating the product according to survey

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Chapter 6: Recommendations

Recommendations

From the research of City branch banking survey program at CBL, the researcher has come up

with some recommendations that might help the bank to improve its service quality. They are:

 The bank should have a minimum time limit to provide per customer service. By doing

this they can meet their customer perceived service quality.

 The bank needs to provide the description of all charges to the customers. Because

sometime customer complains they don’t aware of some charges.

 The bank need to arrange training on varies software execution. It helps employee to do

their work faster and better their service quality.

 The City Bank need to review the training session’s output regularly. So that they can

know the current status about their customer satisfaction level.

 The City Banks high authority should take necessary steps to motivate employees

immediately. Its helps to grow their employee’s productivity as well as better service

quality.

 Need to relate strongly service quality department with branch customer service

department.

 The bank should reduce the frequent changes on rules and regulations. Because customer

often complains City Bank charge more than other bank.

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 The City Bank needs more employees for the Agrabad branch. Because it’s a big branch

that’s why it’s important to maintain the better service quality by providing the service in

time. For doing this they need more employee.

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Chapter 7: Conclusion

Conclusion

It was a great pleasure for me to make a research in “The City Bank Limited”. Since without

practical exposure, it may not be possible to compare the theory what one has learnt with

practical application. And it is well established that theory without practice is blind. The main

focus of the report was identifying the satisfaction level towards The City bank Limited of its

customer.

Out of the above discussion a conclusion can be drawn after saying that, the present customer

dealing procedure is quite well but as the customers of City Bank expect a lot from the bank,

bank have to compete with itself. It would be great opportunity of the bank if it focuses on some

factors like responsiveness, assurance and reliability then to left behind well all other banks in

Bangladesh. At this moment and the computerized transaction makes the system efficient and

effective.

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Chapter 8: References

References
Parasuraman, A. and Rohit Deshpande (1984), “The Cultural Context of Marketing

Management,” in American Marketing Association Educators’ Proceedings, Series 50, Russel

W. Belk, et al, eds., Chicago: American Marketing Association, 176-179.

Parasuraman, A., Valarie A. Zeithaml , and Leonard L. Berry (1985), “A Conceptual Model of

Service Quality in its Implications for Future Research,” Journal of Marketing, 49 (Fall), 41-50.

Parasuraman, A., Valarie A. Zeithaml , and Leonard L. Berry (1986), “SERVQUAL: A

Multiple-item Scale for Measuring Customer Perceptions of Service Quality,” Report No. 86-

108, Marketing Science Institute, Cambridge, MA.

Parasuraman, A., Valarie A. Zeithaml , and Leonard L. Berry (1988), “SERVQUAL: A

Multiple-item Scale for Measuring Consumer Perceptions of Service Quality,” Journal of

Retailing, 64/1 (Spring),12-40.

Parasuraman, A., Leonard L. Berry, and Valarie A. Zeithaml (1991a), “Perceived Service

Quality as a Customer-based Performance Measure: An Empirical Examination of

Organizational Barriers Using an Extended Service Quality Model,” Human Resource

Management, 30/3 (Autumn), 335-364.

Parasuraman, A., Valarie A. Zeithaml, and Leonard L. Berry (1991b), “Refinement and

Reassessment of the SERVQUAL Scale,” Journal of Retailing, 67/4, 420-450.

Parasuraman, A., Leonard L. Berry, and Valarie A. Zeithaml (1993), “More on Improving

Service Quality Measurement,” Journal of Retailing, 69 (Spring),

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Parasuraman, A., Valarie A. Zeithaml , and Leonard L. Berry (1994), “Reassessment of

Expectations as a Comparison Standard for Measuring Service Quality: Implications for Future

Research,” Journal of Marketing, 58 (January).

Lewis, R.C. and Booms, B.H. (1983), “The marketing aspects of service quality", in Berry, L.,

Shostack, G. and Upah, G. (Eds), Emerging Perspectives on Services Marketing, American

Marketing Association, Chicago, IL, pp. 99-107.

Lewis, B.R. and Mitchell, V.W. (1990), “Defining and measuring the quality of customer

service”, Marketing Intelligence & Planning, Vol. 8, No. 6, pp. 11-17.

Lings, I.N. and Brooks, R.F. (1998), “Implementing and measuring the effectiveness of internal

marketing”, Journal of Marketing Management, Vol. 14, pp. 325-51.

Oliver, R.L. (1980), “A cognitive Model of the antrecedents and Consequences of Satisfaction

Decisions”, Journal of Marketing Research, Vol. 17, pp.460-469

Oliver, R.L. and W. DeSarbo (1988), “Response determinants in satisfaction judgments”,

Journal of Consumer research, Vol. 14(March):495-507.

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Questioner
CITY BRANCH BANKING SURVEY City Service Quality

Branch Name: ………………………………………………………. Date: ……………………………………………

Customer’s Name: ……………………………………………….. Contact No.: …………………………..…..

Respondent Type Service Area:

Customer Cash Area / Teller Service
Non-Customer Customer Service / Query

Relationship Manger
Please Tick ( ) your answers

1 Did Our officer serve you as you expected?

Yes No

2 How would you rate the overall service of this Branch?

Good Average Poor

3 What do you think about the timeliness of receiving the desired service?
Good Average Poor

4 How would you rate the premises of this Branch?

Good Average Poor

5 What is the best thing you like about our product / feature?
CA/SA FDR Loan AMEX

Others:………………………………………………………………………………

Your additional comments / suggestions:

…………………………………………………………………………………………………
…………………………………………………………………………………………………

…………………….
Signature

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