Case solution to Citibank Credit card case: Launching the credit card in Asia Pacific
Credit Card RefundsFull description
A RESEARCH REPORT ON
CUSTOMER SATISFACTION CRITERIA FOR CREDIT CARDS IN THE PARTIAL FULFILLMENT OF REQUIREMENT FOR THE AWARD OF
BACHELOR OF BUSINESS ADMINISTRATION
(BBA) ACADEMIC SESSION: 2003-2006
UNDER THE GUIDANCE OF: Mrs. Pankaj Bhardwaj Branch Manager HSBC BANK LTD., NEW DELHI
SUBMITT ED BY : GAURAV BHAMA BBA-V SEM. ROLL NO.: 9357551
Institute of Management Studies C-238, BULANDSHAHAR G.T. ROAD, LAL QUAN, P.B. NO. 57,
PREFACE This This Proj Projec ectt Repo Report rt has has been been prep prepar ared ed towa toward rds s the the part partia iall fulfillment of Bachelor of Business Administration.
The present day managers of business concern function in a dynamic environment. In a world in which change is a suite & not an exception nothing is certain markets can’t relax once they have launched their product or service in market. In a dynamic world a business concern has the drive through a thick fog of in certifications & risk & a worng move may prove disastrous. It is here that a business managers beeds to thick what a customers thinks & exception from his product & how can customers exception can be translated into features & attributes of the product so that customer feels delighted. This project tries to drive into the minds of customers of credit cards & tries to know what they actually expect from a credit card service. This study is based based on unskiasked unskiasked respondents respondents given by the so kind respondents.
ACKNOWLEDGEMENT I extent my gratitude to Mr. Pankaj Bhardwaj, Branch Manager Who Who has has give given n an oppo opport rtun unit ity y to unde underg rgo o trai traini ning ng in mark market etin ing g department of HSBC Bank as a Trainee.
I would like to convey my heartiest gratitude to Mr. Amit Gupta, Team Leader, Credit Card Sales Division, HSBC Bank under whose
guidance this report could be prepared.
Finally, I would like to thank other countless people, who had helped me directly or indirectly, as they have been generous with their time, their support and encouragement.
Thank to all of you.
TABLE OF CONTENTS
1. Preface 2. Acknowledgement 3. Introduction •
Introduction to Project
Profile of HSBC
Features and Benefits
4. Research Methodology 5. Data Analysis 6. Findings 7. Limitations 8. Conclusion 9. Recommendations 10. Appendix 11. Bibliography
INTRODUCTION TO THE PROJECT Cust Custom omer er incr ncreas easing ing expec xpectt high higher er qual qualit ity y & serv servic icee & some some customization. They perceive fewer real products differences and show and less brands loyalty. They can obtain extensive credit card information from the internet and other sources which permits them to shop more intelligently. When the buyer of credit card is satisfied after purchase depend of the performance of credit card in relation of buyer’s expectations in general satisfaction is a person feeling of pleasure or disappointment resulting from comparing a credit card performance performance in relation relation to his expectations. expectations. If it performanc performancee falls short of expectation, the customer is dissatisfied. If performance mat matches ches the expe expect ctat atio ions ns the custo ustome merr is sati satisf sfie ied. d. If the the performance exceeds expectations the customer is highly satisfied or delighted. The project which we have undertaken tries cover the main objective to find out customer satisfaction criteria for credit card. It also tried to cover following aspects. This will lead to certain implication for credit cards companies as to how they can formulates their future strategies in order to increase there sales. We have tried going in deta detail ilss and and stud studyi ying ng the the purch purchase ase of credi creditt card card from from diff differ eren entt angles so, as to analyze the issue from 3600 . The research tries to
develop an understanding on the following aspects too. Which on the whole will help us in understanding the consumer behavior for a credit card in a holistic view. The general awareness level of credit cards. What are the advantages and disadvantages of credit cards. The consumer behavior in credit cards and decision making process. What are the uses of credit card. What are the the things that th att a consumer needs to look look for in a credit card tha credit card before deciding to purchase it. What role does brand play. Other related issues.
INTRODUCTION TO VISA AND MASTER VISA The story of VISA is inseparable from one of the most significant payment innovations of the twentieth century the payment card. By developed this tool of unprecedented flexibility and popularizing its use around the world. VISA shape the way that people everywhere live. The VISA card has helped bring possibilities and independence to millemium VISA era began in 1958, when the Bank of America first issu issued ed its its blue blue,, whit whitee and and gold gold Bank BankAm Amer eric icar ard d to cust custom omer erss in Califonia. Its bedrock concept of personal empowerment traces back much earlier. A.P. Giannini, founder of the Bank of America at the beginning of the century, belived that flexible personal credit could hel help ordinary men and women take control of togeth ether. er. The BankAmericard, a financial instrument established to drive positive social change, change, continued continued this this legenacy legenacy of compassionat compassionate, e, customercustomerfocused banking.
With BanlAmericard international popularity in the 1960s and 1970s new corporate entity, jointly owned and a operated by license member inst instit itut utio ions ns,, was was crea create ted d to supp suppor ortt them them.. The The name name “Vis “Visa” a” was was introduced in 1976 and applied to the new organization. Soon Visa credit cards were spreading around the world.
Under the leadership of Dee Hock, Visa laid the groundwork for the success of its member financial financial institutions institutions for decades decades to come. Hock oversaw the the creation creation of the first-ever first-ever electron electronic ic system system for handling cre credit dit
trans ansacti ctions-an
inves vestment ent
trans ansacti ction
proc proces esssing
infr infras astr truc uctu ture re whic which h woul would d lead lead to rapi rapid d grow growth th and and expa expans nsio ion. n. Throughout the 1980s and 1990s, Visa continued to make important strides forward, introducing the first premium credit card, creating the first global ATM network, developing new smart and prepaid cards and gaining market share around the world.
Today, Visa proudly lives up to its heritage by focusing on empowering customers. Visa 21,000 member institutions have issued more than one bill billio ion n card cardss and and to its its value valuess rema remain in firm firmly ly anch anchor ored ed in serv servic ice, e, commi commitm tmen entt and inno innova vati tion on.. Visa Visa is pione pioneer erin ing g the the creat creation ion of ccommerce, or universal commerce-the ability to conduct commerce anywhere, and way. In the real world and online, Visa is leading the glob global al mark market et with with exci excitting ing new new put put on large argerr and grad grader er and and celebrations in an attempt to out-do each other.
“comme “commerce rce techno technologi logies es and capabil capabiliti ities es that that add conven convenienc iencee and each to its payment solutions”
Jointly owned by more than 21,000 financial institutional around the global reach, Visa remains very much a local organization, givi giving ng its its regi region onal al offi office ces s a high high degr degree ee of oper operat atin ing g and and marketing autonomy, Because Visa’s regional organizations are clos closes estt to thei theirr loca locall mark market ets, s, they they know know best best how how to help help member institutions serve their customers. Empowering member fina financ ncia iall insti institu tuti tion ons-i s-it’ t’s s the the prin princi cipl ple e that that unde underl rlin ines es Visa Visa’s ’s success. Visa products and services-including credit, debit and prepaid, corporate, purchasing and business products-are offered directly by memb member er fina financ ncia iall inst instit itut utio iona nals ls to thei theirr cust custom omer ers. s. Visa Visa inte intern rnat atio iona nall focu focuse ses s on prov provid idin ing g memb member ers s with with a stro strong ng comp compet etit itiv ive e plat platfo form rm,, incl includ udin ing g an adva advanc nced ed tran transa sacti ction onal al processing infrastructure and global branding and marketing. But around a highly responsive and flexible regional structure, Visa International also leads new initivates in product development, global research and strategic alliances.
MasterCard International International is a global payments company with one of the most recognized and respected brands in the world. We manager a full range of payment programs and service, including MasterCard® credit, MasterCards® debit cards, Maestro® online debit cards, Cirrus® ATM cash c ash access, and related programs. With With appro approxim ximate ately ly 22,50 22,500 0 Master MasterCa Card, rd, Cirru Cirrus s and Maestr Maestro o memb member ers s
worl worldw dwid ide, e, Mast Master erCa Card rd serv serves es cons consum umer ers s
busi busine ness sse es, both large rge and smal smalll, in 210 cou countri tries and terr territ itor orie ies. s. Mast Master erCa Card rd is lead leader er in qual qualit ity y and and inno innova vati tion on,, offering a wide range of payment solutions in the virtual and trad tradit itio iona nall
worl worlds ds..
Mast Master erCa Card rd’s ’s
awar awardd-wi wini ning ng
Pric Pricel eles ess® s®
adve advert rtis isin ing g camp campai aign gn is now now seen seen in 98 coun countr trie ies s and and 46 languages, giving the MasterCard brand a truly global reach and scope. MasterCard is accepted at millions of locations around the global. MasterCard began in the 1940s when several U.S. banks started giving their customers specially-issued paper that could be used like cash in local stores. In 1951, The Franklin National Bank in New York formalized the practice by introducing the first real credit card.
Over the next decade, several franchises evolved where a single bank in each major city would accept cards as payment with certain merchants theyd chosen to work with. ON August 16,196, one of the these groups formed the interbank card Association (ICA), which later become MasterCArd International. Unlike other similar organizations, ICA was not dominated by a single bank Member committees were established to run the associatio association. n. They establish established ed rules rules for authoriza authorization tion,, clearing clearing and and sett settle leme ment nt.. They They also also hand handle led d mark market etin ing, g, secu securi rity ty and and global aspects of running the organization. Once the organization was well underway, it was time to expand globally. In 1968, ICA began what is now a huge global network by forming an association with Banco Nacinal in Maxico. Later that year , they formed an alliance in Europe with Eurocard and the first first Japanese’s members joined joined . Many countries followed behind the early international members and by the late 1970s. ICA had members from as far as Africa and Australia. Australia. To reflect reflect the commitement to international international growth, ICA changed its name to MasterCard. In the 1980s, there was future expansion into Asia and Latin America. In 1987, MasterCard become become the first payment card to be issued issued in the
People’s Republic of China. In 1988, the first MasterCard was issued in the Soviet Union. Today, there are over 37 MasterCard offices around the world with the global is accepted in more locations around the world than MasterCard.
DIFFERENT TYPES OF CARDS CREDIT CARDS
If you carry a balance, credit cards can be like expensive loans made by banks, gasoline companies and department stores. The credit card issuer gives you a card. You use the card to pay for items and services up to certain total amount-your credit “limit” The store merchant or services provider collects what you owe from the card issuer, whom you replay. You’re allowed to pay off what you owe little by little each month, as long as you pay a mini minimu mum m amou amount nt each each time time.. You’ You’re re char charge ged d inte intere rest st on the the balance you owe ( as high as 26% each year) at the end of each peri period od,, unle unless ss you you pay pay the the full full bala balanc nce e each each time time your your bull bull arrives. Credit cards yield profits to their issuers for several reasons. The most important is the high rate of interest-interest on credit cards alone accounts for the bulk of the profit earned by banks that issue credit card, and most companies charge late fees, overthethe-ti time me fees fees and and othe otherr misce miscellllan aneo eous us char charge ges. s. Fina Finalllly, y, the the companies profit by charging merchants and service providers a fee fee each each time time a cust custom omer er uses uses the the comp compan any’ y’s s cred credit it in the the merchant’s establishment.
Charge cards, also called travel and entertainment cards, are a little different from credit cards. Charge cards, such as American Express and Diners Club, have no credit limit. You can usually charge as much as want, but you are required to pay off your entire balance when your bill arrives, with one exception. It you char charge ge air air fare fare,, crui cruise se fees fees or hote hotels ls fees fees for for a hote hotell room room booked booked throug through h a travel travel agent agent on an Americ American an Expres Express s card, card, you pay off your balance over 36 months. You’ll be charged between 19% and 21% interest and will have to make minimum monthly payments of $20, or 1/36 of your balance, whichever is greater. Charge card companies make their profits by charging very high annual fees- up to $100- and by charging merchants relatively high high fees fees each each time time a cust custom omer er pays pays usin using g the the comp compan any’ y’s s charge card. If you don’t pay your charge card bill in full, you’ll get a onemonth month grace grace perio period, d, when no intere interest st is charge charged. d. After After that, that, you’ll be charged interest that averages about 18%. It you don’t pay pay afte afterr abou aboutt mont months hs,, thre three e mont months hs,, your your acco accoun untt will will be closed and your bill sent s ent to the collections departments.
Many people use their credit or charge cards to obtain cash advances, Cash advances are generally more expensive than standard credit card charges. Most banks charge a transaction fee up to 4% for taking a cash advance. They also charged interest from the date the cash advance is posted, even if you pay it back in full when your bill comes. Finally , the interest rate is often higher or cash advances than it is on ordinary credit card charges. ATM CARDS
ATM ATM card cards s are issue ssued d by banks nks esse essen ntia tially lly to give bank customers flexibility in their banking hours . in most areas, with an ATM card you can withdraw money, make deposit, transfer, money money betwe between en accou accounts nts,, find find out out your your balan balance, ce, get get a cash cash advance and even make payments at all hours of the day or night. DEBIT CARDS
Debit cards combine the functions of ATM cards and checks. Debit card area issued by banks but are used at stores, not at the banks banks themse themselve lves. s. When you you pay pay with a debit debit card, the the money is automatically deducted from your checking account. Many banks issue a combined ATM/Debit card that looks just
like a credit card and can be used in places where credit cards are accepted. But don’t be mistaken- they are not credit cards. The The mone money y you you spen spend d come comes s out out of your your chec checki king ng acco accoun untt immediately. Man Many peo peopl ple e pre prefer fer deb debit car cards ove over check ecks for two reasons: •
You do not have to carry checkbook and present identification, identification, but are still s till able to make purchases directly from your checking account.
You pay your bills immediately, unlike when you use a credit card and get the bill later.
But there are disadvantages to using debit cards. Many people pref prefer er havi having ng 20-2 20-25 5 days days to pay pay thei theirr cred credit it card card bill bills. s. Also Also,, consumers using debit cards don’t have the right to withhold payment payment in the the event event of a dispute dispute with with the the mercha merchant nt over over the the goo goods or serv servic ice es pai paid for for. In add addition tion,, man many banks and merchants charge transaction fees for using debit card. Finally, if debit card number is stolen on the internet, the their may drain your your bank bank acco accoun untt befo before re the the bank bank is able able to comp comple lete te its its investigation. For this reason, it’s better to use credit , rather than debit, cards for online purchase.
CHEQUE GURANTEE CARD
Used for identification identification purpose only. Not linked with credit or debit types. Allows the merchant to accept personal cheque payments without fear of dishonor. Some validation checks required e.g…, telephone authorization authorization etc. STORE VALUE CARD
Electronically processed card that stores monetary value Value can be stores on a chip or magnetic strip on the card. c ard. Typically used by public utilities where a large number of small value transactions can replace cash e.g…, MTNL Card, BEST Card. SMART CARD
Has an implanted computer chip incorporated in the card plastic which gives it the power to perform many many different functions like having a PC in your wallet! Mult Multip iple le appl applic icat atio ions ns on the the same same card card e.g. e.g... cred credit it,, debi debit, t, electronic cash, driving licenses, secure identification hence you need to carry less cards in your y our wallet. Chip can record data or value or both and can store up to 80 times more information than a magnetic chip.
Terminal on which the card is used has a chip reader in addition to the magnetic stripe reader. CO-BRANDED CARD
Banks enter each into partnership with a non-bank to market credit cards. Both parties are into the alliance for financial gain as the non bank partner is a profit-making company with a good customer base. The bank gains an additional customer base while the non-bank partner can offer credit cards to its members. A customized card for a specific retailer or service provider, such as shoppers Stop that wishes to solicits customers. The issuer looks looks after after the card card opera operatio tions ns while while the co-bra co-brand nded ed partn partner er shared marketing costs and responsibility E.g. Citibank-Jet-Airways Card, HSBC-PNB card. AFFINITY CARDS
To grow a portfolio , the bank enters into partnership with a nonbank to issue a card which may have a third party name on the face of the card If the non-bank partner is a non-profit organization , the card is known as an affinity card.
As cred credit it card card issu issued ed by a memb member er in conj conjun unct ctio ion n with with an organization or collective group (e.g. a professional organization or special interest group) which is identified on the card. The issu issuer er ofte often n pays pays the the orga organi nizat zatio ion n a roya royalility ty per per card card or per per transaction charged. e.g. Tollygunge Tollygunge Club card, card, Delhi Golf Golf Club card.
PROFILE OF HSBC Introduction HSBC has its Headquarters in London. HSBC Holdings plc is one of the larg larges estt bank bankin ing g and and fina financ ncia iall servi service ces s organizations inte intern rnat atio iona nall 9,500
netw networ ork k
comp compri rise ses s countries
over over and
terr territ itor orie ies s in Euro Europe pe,, the the Asia Asia-P -Pac acif ific ic regi region on,, the the Amer Americ icas as,, the the Midd Middle le East, East, and Africa. With listings on the London, Hong Kong, New York and Paris Paris stock stock exchan exchanges ges,, aroun around d 190,00 190,000 0 shareh sharehold olders ers in some some 100 cou countri tries and terr territ ito orie ries hold sha shares res in HSBC HSBC Holdings plc. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts. Thro Throug ugh h an inte intern rnat atio iona nall netw networ ork k link linked ed by adva advanc nced ed technology, including a rapidly growing e-commerce capability, HSBC HSBC provid provides es a compre comprehen hensive sive range range of finan financia ciall servic services: es: person personal al finan financia ciall servic services; es; commer commercia ciall bankin banking; g; corpo corporat rate, e, investment, banking, and markets; private banking; and other activities.
HSBC IN INDIA HSBC HSBC's 's orig origin in in Indi India a date dates s back back to 1853 1853,, when the Mercantile Bank of India was established in Mumbai. The bank has since, steadily grown in reach and service offerings, keepin keeping g pace pace with with the evolvi evolving ng banki banking ng and and financial needs of its customers. The acquisition in 1959 by The Hongkong and Shanghai Shanghai Banking Banking Corporatio Corporation n Limited Limited of
the Mercantile Bank was a decisive factor in laying the foundation for today's HSBC Group. Founded in 1865 to serve the needs of the merchants of the China coast and fina financ nce e the the grow growin ing g trad trade e betw betwee een n Chin China, a, Euro Europe pe,, and and the the United States, HSBC has been an international bank from its earliest days. After the Mercantile Bank was acquired by The Hongkong and Shan Shangh ghai ai Bank Bankin ing g Corp Corpor orat atio ion, n, the the Flor Flora a Foun Founta tain in buil buildi ding ng became and remains to this day, the Head Office of the HSBC Group in India. Through the 1990s, HSBC has vigorously developed its role as one of the leading banking and financial services organizations in the world. Its strategy of 'managing for value' emphasizes the Group's unique balance of business and earnings between older, mature economies and faster-growing faster-growing emerging markets.
HSBC in India is proud to have retained the Group's pioneering streak by being an active partner in the development of the Indian banking industry - even giving India its first ATM way back back in 1987 1987.. The The organ organiza izatio tion’s n’s adap adaptab tabili ility, ty, resi resililien ence ce,, and and comm commit itme ment nt to its its custo custome mers rs have further enabled it to survive through clients as also also to a fast fast grow growin ing g pers person onal al bank bankin ing g customer turbulent times and prosper through good times over the past 150 years. In India, the Bank offers a comprehensive suite of worldclass class produ products cts and servic services es to its corpor corporate ate and and commer commercia ciall banking base. HSBC Group entities in India
1. The Hongkong Hongkong and and Shanghai Shanghai Banking Corporation Limited (HSBC) 2. HSBC Asset Manage Management ment (India) (India) Private Private Limited Limited 3. HSBC Electronic Electronic Data Processing (India) Private Limited Limited 4. HSBC Insuranc Insurance e Services Services (India) Private Private Limited Limited
5. HSBC Securitie Securities s and Capital Capital Markets (India) (India) Private Private Limited 6. HSBC Primary Primary Dealership Dealership (India (India)) Private Limited Limited 7. HSBC Private Private Equity Manageme Management nt (Mauritius) (Mauritius) Limited Limited 8. HSBC Software Software Developme Development nt (India) (India) Private Limited Limited Products /services offered by HSBC
1. Cred Credit it Card Card a. HSBC HSBC Gol Gold d Card Card b. HSBC HSBC Cla Classi ssic c Card Card 2. Loans a. Home Home Loa Loans ns b. Person Personal al Loans Loans c. Educat Education ional al Loan Loans s d. Profes Professio sional nal Loan Loans s 3. Acco ccount a. Saving Savings s Accoun Accountt b. Fixe Fixed d Acco Accoun untt c. Dema Dematt Acco Accoun untt d. Smart Smart Mone Money y Accoun Accountt e. Curren Currentt Accoun Accountt i. Busi Busine ness ss Sele Select ct
ii. ii. Busi Busine ness ss Vant Vantag age e iii. iii. Busi Busine ness ss Acco Accoun untt 4. Insu Insura ranc nce e a. Person Personal al Insur Insuranc ance e i. Life Life Insu Insura ranc nce e ii. ii. Home Home Insu Insura ranc nce e iii. iii. Hospit Hospital al Cash Cash Insura Insurance nce iv. iv. Car Car Insu Insura ranc nce e v. Person Personal al Accoun Accountt IInsu nsuran rance ce b. Busine Business ss Insur Insuran ance ce 5. Wealth Wealth Man Manag ageme ement nt a. HSBC HSBC Prem Premie ier r b. Powe Powerr Vanta Vantage ge c. Financ Financial ial Plan Plannin ning g Service Service d. Busine Business ss Select Select e. Mutu Mutual al Fund Fund 6. NRI NRI Ser Servi vice ces s a. Non Non Resi Reside dent nts s b. Returnin Returning g Non Non Residents Residents 7. Corporate Corporate and and Institution Institutional al Banking Banking a. Corpo Corporat rate e Banki Banking ng b. Treasury Treasury and Capital Capital Market Market c. Instit Instituti ution onal al Banki Banking ng d. Equities, Equities, Corpora Corporate te Finance Finance And Advisory Advisory
e. Payment Payment and and Cash Cash Managem Management ent i. Payment ii. ii. Col Collect lectiions iii. iii. Acco Accoun untt Mana Manage geme ment nt iv. Electr Electron onic ic Ban Bankin king g Hexa Hexagon gon f. Trade Trade And Factor Factorin ing g Serv Service ices s i. Trad Trade e Serv Servic ices es ii. ii. Fact Factor orin ing g Ser Servi vice ces s iii. iii. Prec Precio ious us Meta Metals ls iv. iv. Cust Custod ody y And And Clea Cleari ring ng Technology Used
HSBC's global network is linked by advanced technology, including a rapidly growing e-commerce capability. Contribution to Society HSBC employees lend a helping hand in India
The helping hand staff volunteer programme was launched in Mumbai in 2001 and has sin since then has extended to Ahmedabad, Bangalore, Hydrabad and Pune, putting volunteers in touch with NGO's and charities that need a helping hand.
HELPING HANDS MELA
Over 50 charities and NGO's take advantage of HSBC's annual exhibition (mela) to display their work and raise money through the sale of their products .
FEATURES AND BENEFITS 1. Wid Wide e accept acceptab abili ility ty
The card will be accepted accepted at over 18 million million establishmen establishmentt across across the world in addition addition to 1,00,000 1,00,000 establi establishmen shmentt in India. 2. Stan Standa dard rd Fee Fees s
The The annu annual al fees fees for for Gold Gold and and Clas Classi sic c Card Cards s are are give given n below : Gold Card
3. Rewa ward rds s
Cardholders will get rewarded just for using their HSBC Globally valid card for every Rs. 100 charged to the card hold holder ers s rece receiv ive e 1 rewa reward rd poin point. t. Thes These e paoi paoint nts s can can be accumulated for the year and then redeemed against card rene renewa wall fees fees,, gits gits vouc vouche hers rs and and card card upgr upgrad ade e fees fees.. A minimum of 250 points has to be accumulated in order to start redeeming. 4. Glo Global bal ATM ATM Servi Services ces
Cardholders have access to cash, round the clock, at over 6,00,000
VISA VISA/M /Mas aste terC rCar ard/ d/Ci Cirr rrus us and and all all HSBC HSBC ATM’ ATM’s s Clas Classi sic c cardholders can withdraw up to Rs. 25,000 per day and Gold Card holders can withdraw up to Rs. 50,000 per day within the overall specified limit.
5. Fin Financ ance e Char Charge ges s
You can get up to 48 days free credit without any finance charge being levied to your credit card account provided your credit card outstanding shows in your statement is settled in full on the due date. Finance charges will be
applicable, if only part payment is made, at 2.95% on a average daily balance basis from the date of statement.
6. Travel Travel Privil Privilege eges s
Cardholders can get a discount of 30% on basis domestic airfares and 5% on basis international airfares when they purchase their air tickets through credit car card from International International Travel House (ITH). In addition ITH will deliver the tickets free of charge within city limits.
7. Insura Insurance nce Ben Benefi efits ts
Our packa package ge of insur insuranc ance e benef benefits its for gold gold cardh cardhold olders ers is amongst the best in the industry. •
Cardho hold lder ers s are are enti entitl tled ed to free free Acciden Accidentt Insuranc Insurance e: Card insurance cover of Rs. 15,00,000 for a Classic card in the event of loss of lives due to an air accident. For loss of life due to other accidents the cover is Rs. 4,00,000 and Rs. 1,50,000 for Gold and Classic cards respectively.
Purchase Protection : All items bought using the card are
insured against damage or loss due to fire or theft for a 180-day period up to a value of Rs. 50,000 for a Gold Card and Rs. 30,000 in case of a Classic Card. •
:In case case a card cardho hold lder er lose loses s Zero Zero Lost Lost Card Card Liab Liabil ilit ity y :In her/ her/hi his s card card
her/ her/hi his s will will not be liab liable le for any charg charges es
incurred on the card after the loss has been reported to the bank in writing. •
Credit Shield : In the event of Accidental death, payment of
outstanding on the card is waived up to Rs. 40,000 for Gold cardholders and Rs. 20,000 for Classic cardholders. c ardholders. •
Cardhold olders ers are covere covered d for Lost Baggage Baggage Insuranc Insurance e : Cardh loss/t ss/th heft of che checke cked bagg aggage age duri durin ng domest mestic ic and international international flights for up to US$1,200 for Gold cardholders and up to Rs. US$600 for Classic cardholders. This cover is applicable after 48 hours of arrival at your destination.
Enhanced Travel Insurance Benefits for GOLD CARD holders :•
Gold car cardho dholders ders are Dela Delay y in chec checke ked d bagg baggag age e : Gol covered for US$ 300 in the even of checked baggage being delayed yed for mor more than 6 hours during domesti stic or
international flights from the scheduled arrival time at the destination •
the even eventt of your your flig flight ht gett gettin ing g Hijack Hijack Protection Protection : IN the hijacked, Gold Cardholders can claim US$250 per hours every that the flights is hijacked. This cover is applicable post 12 hours of hijacked up to a maximum of 36 hours
8. Glo Global bal Call Calling ing Card Card
Card Cardho hold lder ers s will will get get a free free call callin ing g card card from from Glob Global al One. One. Whic Which h enab enable les s them them to make make long long dist distan ance ce call calls s whil while e traveling overseas at every competitive rates. These calls are billed to the cardholder’s credit account and are payable in Indian rupees.
9. Zero Zero Petrol Petrol Surc Surchar harge ge
Card Cardho hollders ders are enti ntitled tled to a rei reimbu mburse rsemen ment of petro trol sur surcha charge rge tha that is norma rmally levied vied
on cre credit card card fue fuel
purchases for amounts between Rs. 400 to Rs. 2500 incurred at any petrol pump at any city in India.
Features Worldwide accepted
Free Credit Period
Global ATM Services
Accepted at all outlets worldwide (18 Million establishments)
No need to carry cash while shopping in India or abroad. Pay only 5% of the amount roll over the credit
Flexibility of payment
Make only minimum payments & can avail the credit facility. Withdraw cash on CC (40% of the total Cr. Limit sub. To availability). Up to Rs. 50,000/per day
Easy access to funds. Easy liquidity.
Access to your bank a/c with your credit card (ATMC)
Bonus Rewards Programme
No need to have bank a/c & can still withdraw cash in case of emergency. At ATMs in India, you can request statements, cheque books, perform banking operations. No need to have 2 different cards & 2 different pins. For every Rs, 10/purchase you get 1 reward point which has value of Re. 1/-.
After accumulating 250 bonus points, the same can be redeemed against card renewal fees and quality items.
* in the event of loss baggage or theft,
Privileges a. Lost baggage b. Accident Insurance
insurance covered up to US$ 1200
C. Purchase Protection
In case of death due to ait accident, insurance cover up to 20 lacs & in case of death due to other accident, insurance cover upto 2 lacs
There is waiver of payment of o/s on the card up to Rs. 40k If the items purchased during CC, is danaged or lost due to theft or fire, insurance cover available up to value of Rs. 50k. Claim can be made within 180 days period from date of purchase.
D. Zero Lost Card
Delay in checked baggage
Loss of passport & travel documents
In case of card loss & reporting the same immediately to the bank will prevent any misuse of card GCH are covered up to US$300 for emergency purchase of replacement items.
C/h reimbursed up to US$ 500 for expenses incurred in btaining alternate documents in case of loss of original documents
Airline tickets can
Protection against misuse
be booked using CC at Spl. Dscount of 3.5% on basic domestic air fares & 6.5% on basic intal, air fares. •
The rickets will be delivered to door step without any extra charges. Free of charge Amount billed on CC which reflects in monthly statement Amount billed in INR which saves on foreign exchange. Can make long distance cals from any telephone booth while traveling overseas. Calls can be made even without
Easy access to telephones. Convenience
CARD RENTAL SERVICES
DRAFT ON CALL
Primary card holder can apply for up to 3 add-oncards (only blood relations)
No joining fees No documentation required Add-on cards also enjoy the same benefits as primary card GCH can avail spl. Car rental services & exclusive discounts @ 20% on basic rates, extra hours & Extra kms. ( Auto riders Rent-a-car) Normal bill payments can be made using this facility
EMERGENCY ASSISTANCE SERVICES
Drafts can be ordered against CC over the phone & the same will be delivered to the doorstep. GCH receive global assistance 24 hours a day & 7 days a week. Assistance is available by pacing collect call to respective centers. The assistance services also include legal, medical, travel & other services.
Global assistance Toll free numbers
CUSTOMER VALUE & SATISFACTION
Over 38 years ago, peter drucker deserved that a company first task is “to create customer”. However, customer face a vast array of product and brand choices, prices, and suppliers. How do they make their choices we believe that customers estimate which offer will delivers the most value customers are value maximizes, within the bound of search costs costs and and limi limite ted d know knowled ledge ge,, mobi mobili lity ty,, and and incom incomee they they form form an expectation of value and act on it. Whether or not the offer lives up to the value expectation offer both satisfaction and repurchase probability.
Our premise is that customer will buy from the firm that they see as offering the highest precision value.
Today’ Today’ss compan companie iess are facin facing g their their toughe toughest st compet competito itors rs ever. ever. Therefore companies need to more rapidly into new economy and employ employ intern internet, et, wirele wireless ss and other other technol technologi ogies es to
achiev achievee a
Here is big question that how companies can go about wailing custom customers ers and out perfor performin ming g compet competito itors. rs. The answe answerr lies lies in doing a better job of meeting or exceeding customer expectations be coz this is costumer centered era.
“John chambers , CEO of Cisco systems put it will “Make your customer customer the cente centerr of
your culture” culture” companies are adept at
building customers, not just product, they are skilled in market engineering, not just product engineering.
TOTAL CUSTOMER SATISFACTION Whether the buyer is satisfied after purchase depends on the offer’s per perfo form rman ance ce in rela relati tion on to the the buye buyerr expe expect ctat atio ions ns.. In gene genera ral, l, satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or out come) in relation to his or her expectations. If the performance fall fallss shor shortt of expe expect ctat atio ions ns the the cust custom omer er is diss dissat atis isfi fied ed.. If the the performance matches the expectations, the customer is satisfied. It the the perf perfor orma manc ncee exce exceed edss expe expect ctat atio ions ns the the cust custom omer er high highly ly,, satisfied or delighted.
Although the customer centered firm seeks to create high customer sati satisf sfac acti tion on,, that that is not not main main goal goal.. If the the comp compan any y incr increa ease sess cust custom omer er sati satisf sfac acti tion on by lowe loweri ring ng its its pric pricee or incr increa easi sing ng its its services, the result may be lower profits.
The company might be able to increase its profitability profitability by means othe otherr than than incr increa ease sed d sati satisf sfac acti tion on for for
exam exampl plee by impr improv ovin ing g
manufacturing process or investing more in R&D) ultimately, the company must operate on the philosophy that it is trying to deliver a hig high leve levell of cus custom tomer satis atisffact action ion subj subjeect to adve advert rtin ing g acceptable levels of satisfaction to the other stake holder given its total resources.
When When cust custom omer erss rate rate thei theirr sati satisf sfac acti tion on with with an elem elemen entt of the the comp compan any’ y’ss perf perfor orma manc ncee say, say, delive delivery ry
the the comp compan any y need need to
recognize that customers vary in how they define good delivery. It could mean early delivery, on time delivery, order completeness and so on. Yet if the company had to spell out every element in deta detail il,, cust custom omer er woul would d face face a huge huge surv survey ey ques questi tion onna nair ire. e. The The company must also realize that two customers can report being
“highly satisfied” for different reasons one may be early satisfied most of the time and the other might be hard to please but was pleased on this accession.
Cleans formal has developed the American customer satisfaction index (ACSI) to measure measure the perceived perceived satisfaction satisfaction consumers feel with with diff differ eren entt firm firms, s, indu indust stri ries es,, econ econom omic ic sect sector or and and nati nation onal al economics.
RESEARCH METHODOLOGY 1. Nature Nature of research research –Descript –Descriptive ive 2. Research Research approachapproach- Sample Sample survey survey 3. SAMPLE SAMPLE SIZE SIZE – 100 100 No. No. 4. Method Method of research research –Question –Questionnaire naire 5. Research Research Instru Instrument ment-Random -Random Sampling Sampling 6. Findi inding ngss 7. Sugg Sugges esti tion onss
RESEARCH METHODOLOGY Rese Resear arch ch meth method odol olog ogy y is a way way to syst system emat atic ical ally ly solv solvee the the research problem. It my be understood as a science of studying how research is done systematically systematically & scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them.
Researcher also need to understand the assumptions underlying various techniques they need to know the criteria by which they can decide that certain techniques & procedures will be applicable to the certain problems and other will not.
The scope of research methodology is wider than that of research method. Thus when we talk of research methodology we will not only talk of the research method but also consider the logic behind the the meth method odss we use use in the the cont contex extt of our our rese resear arch ch stud study y and and explain why we are using a particular method or techniques and why we are not using others so that the research result are capable of being either by researcher himself or others. Why a research study undertaken, how the research problem has been undertaken, how the research problem has been define, in what way and why the hypothesis has been formulated. What data have been collected
and and what what part partic icul ular ar meth method od has has been been adop adopte ted d why why part partic icul ular ar techniques of data collections has been used and a host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study.
In rese resear arch ch meth method odol olog ogy, y, rese resear arch ch proc proces ess, s, rese resear arch ch desi design gn,, sampling design method of data collection are used in this project.
RESEARCH PROCESS Rese Resear arch ch proc proces ess s cons consis istt of acti action on or step steps s nece necess ssar ary y for for effective carry out research and the desired of this steps1.
The best way of Formul Formulati ating ng the Resea Research rch proble problemm- The understanding the problem is to discuss it with ones own colleagues or with those having some expertise in the matter.
Exte Extens nsiv ivee
Lite Litera ratu ture re
Surv Su rvey ey--
form formul ulat atin ing g
problem a brief summery of its should be written down. At this function research should undertake extensive literature survey concerned with the problem. 3.
After extens extensive ive Deve Develo lopm pmen entt of work workin ing g hypo hypoth thes esis is-- After literature survey, researcher should state in clear terms the working hypothesis.
Preparing the research design- The research problem has
bee formulated in clear cut terms. The researcher will be required to prepare a research design. Basically there are three types of research design. - Expl Explor orat ator ory y rese resear arch ch desi design gn..
- Desc Descri ript ptiv ivee rese resear arch ch desi design gn.. - Hypo Hypoth thes esis is tes testi ting ng des desig ign. n. 5.
the items tems unde under r Deter Determin mining ing the sample sample design designss- All the consideration in any field of inquiry constitute a universe or population. There are two types of sampling method are used to design sample. - Random sampling - Non Non rand random om sampl ampliing
A research design is the arrangement of conditions for collection and and anal analys ysis is in a mann manner er that that aims aims to comb combin inee rele releva vanc ncee to research purpose in economy in procedure.
In thi this rese resea arch rch proje roject ct descri script ptiive rese resea arch rch desi desig gn are desi design gned ed.. Beca Becaus use e descr descrip ipti tive ve rese resear arch ch stud studie ies s are are thos those e studies which are concerned which describing the characteristics of particular individual or a group.
And it is used as- Formul Formulati ating ng the objec objectiv tivee of of the studie studies. s. - Design Designing ing the metho methods ds of data data collec collectiv tivee - Sel Selecti ecting ng the samp samplle - Col Collec lecting ting the the dat data - Proc Proces essi sing ng and and anal analyz yzin ing g the the dat dataa - Repo Report rtiing the the fin findi ding ng
SAMPLE DESIGN To prepare sampling design we should follow these points. 1. Type Type of of univ univer erse se 2. Samp Sampli ling ng unit unit 3. Sour Source ce list list 4. Size Size of of the the sample sample 5. Param Paramete eters rs of inte interes restt 6. Budget Budgetary ary cons constra traint int 7. Sampli Sampling ng proce procedur duree
METHOD OF SAMPLING DESIGN Sampling designs are basically of two types :1. Rand Random om samp sampli ling ng 2. Non-Ra Non-Rando ndom m sampl sampling ing
Random Sample: Random Sampling method is any method of
sampling that utilize some type of random selection is the most important type of sampling. A ransom sample allows a known probability to each unit when being selected. Such sampling is very commonly commonly used in lotteries lotteries and raffles. raffles. For ransom ransom selectio selection n the the rese resear arccher her has has to assur ssuree that hat the the dif differe erent unit nits in the population have equal probability of getting selected. For this now a days days one one uses uses comp comput uter er for for gene genera rati ting ng rand random om numb number er for for random sampling.
Non –Random Sapling : This type of sampling does not include
any basis for estimating estimating the probability of including units of population in the sample. The units of population are selected deliberately assumed to adequately present the population.
METHOD OF DATA COLLECTION
In this this resear research ch proje project ct simple simple questi questionn onnai aire re method method are used. used. Questionnaire method is that method where a questionnaire is give to the person which is concerned with the topic and request to fill up this questionnaire.
A ques questi tion onna nair iree cons consis istt of a numb number er of ques questi tion onss prin printe ted d in a definite order on a form.
ADVANTAGE OF QUESTIONNAIRE METHOD 1. Ther Theree is low cost when when the the univ univer erse se is larg largee and and is widel widely y spread geo graphically. 2. It is free free from from the bias bias of interview interviewer. er. 3. Large sample sample can be made use use of and and thus the the 4. Respondent Respondent has adequat adequatee time to give well thought thought answers. answers.
GRAPHICAL PRESENTATION You think promise made by credit card company are fulfilled.
Neither agree - nor disagree
0 Strongly agree
Somew Somew hat agree
Neither Neither agree - nor disagree
Somewhat what disag sagree ree
Strong ronglly disag sagree ree
You like to recommend your credit card to other Strongly agree
Neither agree-nor disagree
25 20 20 16 15
0 Strongly agree
Some what agree
Neither agree - nor Somewha Somewhatt disagr disagree ee disagree
Stro Strongl ngly y disagr disagree ee
You feel taking credit card was a good discussion Strongly agree
Neither agree-Nor disagree
0 Strongly Stro nglyagree
Somew So mewhat agree
Neither agree - nor disagree
Somewhat disag sagree
Str Strong onglydisag sagree
Which factors influenced you most to buy credit card Price
Presentation Presentati on of sales man
Free credit period
Add on card
18 16 13 14 12
6 4 2 0 Price
Free credit cre dit period
Add on card
From where did you come to know about your credit card
35 28 30 25 20 15
10 5 0 Salesman Salesman
Bill Bill board
Referenc Ref erence e group
Would you like to switch over to another company’s credit card Yes
Do you feel services provided by credit card are according to your expectations? Yes
Do you thick interest rate charged by credit card companies is reasonable? Yes
After taking credit card is there any increase in your expenditure? Yes
Do you feel credit card industry is a sinking boat in Indian context Yes
FINDINGS 1. Most of the answer answer our indicate towards disagreemen disagreement, t, it clearly clearly show shows s cust custom omer ers s thic thick k that that prem premis ises es made made by cred credit it card card comprises are not fulfilled; there why filled premises may be like difficulty in claming insurance or free services. 2. Cust Custom omer ers s are are unsa unsati tisf sfie ied d with with cred credit it card card serv servic ices es so they they spread negative word of much when they are asked that is why 50% of customers don’t want to recommend their credit cards to others. 3. This This answe answerr is spread spread evenl evenly y oven oven somewh somewhat at agree, agree, neith neither er agree nor disagree somewhat disagree. People who some what agree because credit card is necessity for them as they have to travel a lot & credit card provides them security & people who somewhat diagram are because credit card didn’t meet their expectation. 4. As we can can see see frie friend nds s or the the exis existi ting ng user users s of cred credit it card card signif significa icantl ntly y influe influence nced. d. The purch purchase ase of credit credit card card which which indicate. That it is the most creditable source of information insurance policies policies are also also major attraction attraction for the customer customer & pres presen enta tati tion on 7 the the way way in whic which h sale salesm sman an conv convin ince ce the the customers also plays important.
5. The awarene awareness ss about about the credit credit card is through through salesm salesman, an, so salesman are the front and employee who play an important role in making perception of credit cards friends and colleagues also help in creating brand awareness. 6. Customers Customers are almost almost evenly evenly divided divided over this this question question which which shows that them is no major product differentiation in the credit card and customer perceive that all of the them are similar. 7. Clearl Clearly, y, the services services of credit credit cards cards have not met the expectat expectation ionss of customers 8. the the inte intere rest st chan change ged d by credit credit card comp compan anie iess amou amount nt to 36% 36% per per annum which in very high customers are aware of this fact & almost all of them expressed this displeasure. 9. Credit Credit card card have have led to increas increasee in the expendi expenditur turee of people people,, People People who have answered no, have not used credit cards even once. 10.Almost two third of people feel that due to debit cards & other facilities days of credit cards are going to be over.
LIMITATIONS Despite the possible efforts in concluding the research, they were some unavoidable situations, which limited the scope of the project. •
The study was restricted to Delhi, Noida & Ghaziabad.
Time was the biggest constraint as all questionnaires were to be filled in person to actual views, but all efforts were made to get information relevant to the research.
There may be some disepecies in views as some, people might give false information in questionnaire, as they might not be in filling the form.
The sample size of 100 is small so there may be difference in the reality and the findings.
CONCLUSION During our project we got an opportunity to study the credit card indu indust stry ry of Indi India. a. It is a rela relati tive vely ly new new busi busine ness ss with with inte intens nsee comp compet etit itio ion n & each each firm firm tryi trying ng to capt captur uree each each othe others rs mark market et shar sharee. It was was a grea greatt learni arning ng exper xperiience nce & we conc onclude luded d following points: 1. Credit Credit card industry industry is still still in a nascent phase phase in India with with an underdeveloped infrastructure. 2. Acceptabi Acceptability lity of credit credit cards is limited limited to large cities cities having malls, big retail stores
3. The penetra penetrati tion on of credit credit cards cards is limite limited d to large cities cities i.e. credit card companies don’t have many customers in tier II & tier III cities. 4. The compani companies es are indulgi indulging ng in aggres aggressiv sivee marke marketin ting; g; they they are not really concerned in satisfying the customer’s need.
5. There is no major major product product differenti differentiation ation in the various various credit credit cards; all of them are providing similar services. 6. The compani companies es are not trying trying to retain retain the custome customers; rs; they are more interested in broadening the customer base. At last we conclude that CreditCard is at declining phase in India.
RECOMMENDATION (1)Company should advertise advertisement ment through through various various things things i.e advertisement through print media electronic media and distribution network. (2)As we have seen in the study persons are must affected by by pri price & qua quality lity factor ctor.. The com company pany shoul hould d concentrate over the price factor of the program so that new customer could be attracted to wards the program although quality factor factor of the program is satisfactory. satisfactory. (3)The compan company y must conducted conducted
the satisfac satisfaction tion survey survey
time to time so that company could know the sati satisf sfac acti tion on leve levell of the the cons consum umer er.. It will will be more more ben benef efic icia iall to comp compan any y in maki making ng new new stra strate tegi gies es & policies. (4)Most of the person, which participated in the survey have said that the program should be divided in to small packages. So that any one could buy it easily.
(5) The company price should be kept low in comparison to competitors product price so that company can earn more profit by selling large volume. (6) The company’s awareness awareness is low, the company company should be more concentrate to increase the awareness of the company. The company can use many marketing total to perform this work. (7)Th (7)Thee com company pany shou shoulld be condu onduct cteed the demo emo of pro progr gram am comp compla lain int, t, poli polici cies es & sugg sugges esti tion on.. It can can improved it market share and consumer satisfaction.
QUESTIONNAIRE 1. You think promise made made by credit card company are fulfilled. fulfilled. a. Stro Strong ngly ly agre agree e b. Some Somewh what at agr agree ee c. Neithe Neitherr agree agree - nor disa disagre gree e d. Somewh Somewhat at disagr disagree ee e. Stro Strong ngly ly disag disagre ree e
2. You like like to recommend recommend your your credit credit card to other other a. Stro Strong ngly ly agre agree e b. Some Somewh what at agr agree ee c. Neithe Neitherr agree-n agree-nor or disagr disagree ee d. Somewh Somewhat at disagr disagree ee e. Stro Strong ngly ly disag disagre ree e
3. You feel feel taking taking credit credit card was was a good discuss discussion ion a. Stro Strong ngly ly agre agree e b. Some Somewh what at agr agree ee c. Neithe Neitherr agree-N agree-Nor or disagr disagree ee d. Somewh Somewhat at disagr disagree ee e. Stro Strong ngly ly disag disagre ree e
4. Which Which factors factors influenc influenced ed you most most to buy credit credit card a. Pric Price e b. Presentation of sales man c. Free Free cred credit it period period d. Teac Teache hers rs
e. Insu Insura ranc nce e cove cover r f. Cash Cash wi with thdr draw awal al g. Add Add on on car card d h. Refere Reference nce group group i. Any other
5. From where where did you you come to know about about your credit card card a. Sale Salesm sman an b. TV c. News Newspa pape per r d. Bill Bill bo boar ard d e. Refe Refere renc nce e grou group p f. Any ot other
6. Would you like to switch switch over to another another company’s company’s credit card
7. Do you feel feel services services provided provided by credit credit card are according according to your expectations? expectations?
8. Do you thick thick interest interest rate charged by by credit card card companies companies is reasonable?
9. After After taking taking credit credit card is there there any increas increase e in your expenditure?
Do you you feel feel cred credit it card card indu indust stry ry is a sink sinkin ing g boat boat in Indi India an
Book by Philip Kotler on Marketing Management
A book on Marketing Research by Luck & Rubin
A book on Marketing of Service by Vallarie A. Zeithaml & Mary Joe Bitner. 4.
5. Training Training Material Material presided by HSBC. HSBC. 6. www.india www.indianinf ninfoline. oline.com com 7.