REVIEW OF LITERATURE

It is desirable to review the relevant literature while understanding the research problem. It provides base for preparing the research design of the study and conceptualizing the concepts of the study. In this chapter a brief review of these studies, pertinent to the present research have been presented. The review of past studies has been presented to provide a glimpse of work done in this area. Howcroft (1991) found that to examine the rationale behind the emergence of customer satisfaction as an explicit corporate objective in retail banking and to postulate the view that if it is to be attained it will necessitate wide-ranging cultural change on a hitherto unprecedented scale. This change will in essence witness the emergence of retail banks as highly cost- sensitive, marketing-oriented organisations. In the process they will become increasingly externally driven, anticipating and responding to customer needs, in terms of product development and delivery systems. Thereby they will recognise that customer service is fundamentally an externally driven strategy, being a response partly to increased competition and partly to increased demands from customers. Brownlie and Mo tin!o (199") found that the nature and direction of the satisfactions that are delivered to consumers of bank services are explored, and the criteria used to evaluate these services are highlighted. The non-metric multidimensional scaling techni ue enabled respondents! perceptions to be represented spatially. It is revealed that respondents had high levels of satisfaction with regard to the location and accessibility of branches and "T#s, and acceptance of the current levels of banking fees$ but expressed some caution in their evaluation of new and improved services. #oode and Mo tin!o (199$) stated that at present banks and building societies crosssubsidize certain types of accounts, namely student accounts, from profits made in other areas of their business. The banks and building societies offer free or subsidized banking in an attempt to attract and retain new business from people who may have higher earning capacity in the future. #ost banks in the %& offer a free '()) overdraft and lower interest rates*charges on loans +, per cent against -../ per cent0 services and overdrafts over this level to students. Tests a hypothesized model which is designed to measure the effects of free banking on perceived overall satisfaction attached to the use of automated teller machines

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+"T#s0 for bank services. 1verall, a number of important differences were found between students and 2normal3 customers with regard to confidence, charges and fre uency of use. %o &all and Le'e() e (199*) studied that customer satisfaction and retention are critical for retail banks, and investigates the major determinants of customer satisfaction and future intentions in the retail bank sector. Identifies the determinants which include service uality dimensions +e.g. getting it right the first time0, service features +e.g. competitive interest rates0, service problems, service recovery and products used. 4inds, in particular, that service problems and the bank5s service recovery ability have a major impact on customer satisfaction and intentions to switch. +e !a ( and ,ta (( (199-) studied that the premise of all efforts to achieve customer satisfaction is the basic assumption that customer satisfaction leads to customer loyalty. "lthough this thesis sounds reasonable, empirical studies indicate that satisfaction often is only a weak indicator of customer loyalty. This can partly be explained by shortcomings in satisfaction measurement. In applying uni-dimensional rating scales, it is assumed that customers who give the same satisfaction score also experience the same emotions, cognitions and intentions. This assumption is uestionable, for satisfaction also has a ualitative dimension. 6resents a ualitative satisfaction model, which results in five different ualitative satisfaction types with different patterns of emotions, cognitions and intentions. 7esults from an empirical study suggest that these satisfaction types imply different levels of the risk that even satisfied customers terminate a business relationship and switch to competitors. Mo tin!o and ,.it! (/000) investiged a model which posits a crucial role for the evaluation of bank customers5 attitudes towards both human tellers and automated banking in mediating the ease of banking factor*perceived satisfaction linkage. The model5s explicit consideration of the effects of bank customer attitudes towards human tellers and automation provides additional explanatory power regarding how the perceived trend towards ease of banking influences bank customer overall satisfaction, switching and loyalty behaviour. " linear structural relations methodological approach is used for the modelling process. A(!1an and B rne2 (/001) found that currently, the banking industry is facing increasingly demanding customers and uickly eroding competitive edges. 7ecent technological breakthroughs in various areas, however, offer opportunities for the banks to excel in customer service uality and convenience. 1ne area of major breakthroughs is the service
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delivery systems that are reshaping the banking business radically. 8owever, there are relatively few empirical analyses of the impact of tele-banking service technology on customers. 9xamines the adoption of tele-banking in :audi "rabia. The field findings reveal that customers increasingly extend their use of tele-banking as their experience grows with the system. The results also indicate that in general :audi consumers5 income levels and education play a vital role in their adoption and usage of tele-banking technology. 3!en4 W2.erand and 5! (/00/) stated that the impact of information technology +IT0 on service uality in the consumer-banking sector. It proposes a service uality model that links customer perceived IT-based service options to traditional service dimensions as measured by :97;<%"= in the context of customer perceived service uality and customer satisfaction. The model also incorporates several variables affecting customers5 perceptions of IT-based services, and was tested by a structural e uation modelling approach using sample data collected from retail bank customers. The results indicate that IT-based services have a direct impact on the :97;<%"= dimensions and an indirect impact on customer perceived service uality and customer satisfaction. The analyses also show that customers5 evaluations of ITbased services are affected by their preference towards traditional services, experiences in using IT-based services, and perceived IT policies. Han and , ! (/00/) found that two beliefs, ease of use and usefulness, have been considered to be fundamental in determining the acceptance of various I: in the past decades. These beliefs may not, however, fully explain the users5 behaviour in an emerging environment such as Internet banking. In this study, we introduce trust as another belief that has an impact on the acceptance of Internet banking. >e collected .(? cases on the >eb to survey users5 behaviour towards Internet banks. The results of statistical analyses using structural e uation modelling indicate that trust has a significant impact on the acceptance of Internet banking. 6a.al and +a(er (/00/) stated that customer satisfaction is a critical issue for both academics and bank marketers. 6revious research has identified service uality, expectations, disconfirmation, performance, desires, affect and e uity as important antecedents of customer satisfaction. The current paper reports findings from a survey which looked into the impact of service uality dimensions and customer expertise on satisfaction. " sample of -@, respondents took part in this study. 4indings indicate that both core and relational dimensions of service uality appear to be linked to customer satisfaction. 4indings also indicate that

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expertise is negatively related to satisfaction. The paper discusses implications for bank managers. Beerli 4 Mart7n and 8 intana (/009) stated that the structural e uations model enabling us to reach the conclusions that satisfaction together with personal switching costs are antecedents leading directly to customer loyalty, with the former exerting the greatest influence$ and perceived uality is a conse uence of satisfaction. "t the same time, the paper shows that the degree of elaboration in the bank selection process does not have a moderating influence on the causal relationships between satisfaction*switching costs and customer loyalty. The perusal of literature revealed the most of the researches are in foreign. They have discussed about the various problem faced by Austomer in bank but no one has discussed whether the customers are satisfied with the present banking services and the problem faced by them by not providing services at time. In the end it can be concluded that most of the studies are conducted on the customer satisfaction related to the services offered by various banks and special reference to hdfc bank. But it is not done all banks customer in India. :o it has a great re uirement to conduct a study on the banks customers in the south delhi.

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