Asian Journal

Asian Research Consortium

of Research in

Asian Journal of Research in Marketing

Vol. 6, No. 1, February 2017, pp. 1-9. Marketing
ISSN 2277-6621 www.aijsh.com

A Study on Customer Satisfaction towards

Housing Loans Provided by HDFC Limited

Dr. J. Ashok*; D. Abinaya**

*Professor & Director,

School of Management Studies,
Bannari Amman Institute of Technology,
Sathyamangalam, India.
**Student,
School of Management Studies,
Bannari Amman Institute of Technology,
Sathyamangalam, India.

Abstract
The validity of any research is based on the systematic method of data collection and analysis. The
present study has been both primary as well as secondary data.

Questionnaire method was used to collect the necessary information. The sample size was that of
110 customers descriptive research design was used to conduct the study. While designing the
questionnaires all the primary and secondary objectives were kept in mind and designed.

The data analysis was made using Cross Tabulation, Hypothesis test and Frequency table. The main
objective of the study is to find the Satisfaction level of Customers against the service provided by
HDFC Ltd.,

The Study reveals that the customers were satisfied with the service provided by HDFC Ltd.
Further the study reveals that there is no significant relationship between the educational
qualification of the customers and their satisfaction against the service provided by HDFC Ltd.

Keywords: Customer, Housing Loan, Disbursement, Bank, Documents, Service.

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Introduction

Customer Satisfaction

Customer satisfaction refers to how satisfied customers are with the products or services they
receive from a particular agency. The level of satisfaction is determined not only by the quality and
type of customer experience but also by the customer’s expectations.

A customer may be defined as someone who:

 Has a direct relationship with, or is directly affected by your agency and receives or relies
on one or more of your agency’s services or products. Customers in human services are
commonly referred to as service users, consumers or clients.

 An organization with a strong customer service culture places the customer at the centre of
service design, planning and service delivery. Customer centric organizations will:

 Determine the customers’ expectations when they plan

 Listen to the customer as they design

 Focus on the delivery of customer service activities

 Value customer feedback when they measure performance.

Objective of the Study

 To study the effectiveness of credit appraisal process.

 To measure the customer satisfaction.

 To study about customer preferences of HDFC.

Review of Literature
Kurt Matzler and Hans H. Hinterhuber in their article “How to make product development projects
more successful by integrating Kano's model of customer satisfaction into quality function
deployment” in Science direct Technovation, Volume 18, Issue 1, January 1998, Pages 25-38 said
that -Managers need a set of practical step-by-step tools and methods which ensure a better
understanding of customers' needs and requirements, as well as procedures and processes to
enhance communication by focusing on the voice of the customer within a product development
project.

The authors propose a methodology, based on Kano's model of customer satisfaction, to

explore customers' stated needs and unstated desires and to resolve them into different categories
which have different impacts on customer satisfaction.

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Vol. 6, No.1, pp. 1-9.

Robert A. Peterson and William R. Wilson in their paper “Measuring customer

satisfaction: Fact and artifact” published in Journal of the Academy of Marketing Science October,
2007 said that- Self-reports of customer satisfaction invariably possess distributions that are
negatively skewed and exhibit a positivity bias. Examination of the customer satisfaction literature
and empirical investigations reveal that measurements of customer satisfaction exhibit tendencies
of confounding and methodological contamination and appear to reflect numerous artifacts.

Thorsten Hennig-Thurau and Alexander Klee in their article “The impact of customer
satisfaction and relationship quality on customer retention: A critical reassessment and model
development” published in Department of Marketing II, Marketing Management, University of
Hanover, Königsworther Platz 1, 30167, Hanover, Germany said that - Customer satisfaction with a
company's products or services is often seen as the key to a company's success and long-term
competitiveness. In the context of relationship marketing, customer satisfaction is often viewed as a
central determinant of customer retention.

Research Methodology
Research methodology is a way to systematically solve the research problems when we take of
research methodology us not only to take the research methods but also consider the logics behind
the method. So those research results are capable of being evaluated by the researcher himself or by
others.

Research Objectives
To analyze the customer satisfaction of HDFC LTD

Research Design
Preparation of research design is starting the conceptual structure in which research has been
conducted. The preparation of such a design facilitates research to be as efficient as possible
yielding maximal in formations.

The research design is descriptive which is focused on accurate description of the

variables present in the problem.

Sampling Plan

The number of customers who got home loan from HDFC LTD

Sample Size

Among the customers (i.e.) total no of 110 customers were selected for the study as respondents.

Sample Unit

Sample unit is the target aimed at among customers. The 110 customers selected for the study as
respondents.

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Sources of Secondary Data

Secondary data means data that are already available (i.e.) data which have already been and
analyzed by someone else.

Secondary data has been collected from text books, company brochures and websites.

Methods of Primary Data Collection

Primary data are those which are collected afresh for the time and thus happen to be original in
character.

The data used for the purpose of study is primary data collected through distribution of pre
designed questionnaires.

Analysis and Interpretation

Frequency Analysis

Gender of the Respondents

Based on the frequency analysis it is concluded that 74.5% of the respondents are Male and 25.5%
of the respondents are female.

Age of the Respondents

From the frequency analysis it is inferred that 48.2 percentages of respondents are in the age limit
of 31-40. 25.5% of respondents are in the age limit of 41-50. Only there are 6.4% of respondents
are in the age limit of more than 51.

Educational Qualification of the Respondents

While analyzing the responds it is inferred that 61.8% of respondents are completed their under
graduation. Like that 38.2% of the respondents did their Post graduation.

Occupation of the Respondents

Based on the Frequency analysis it is concluded that 34.5% of the respondents are Government
Employees. Private Employees are 31.8% and Self Employed and Professional are 23.6% and 10%
respectively.

Monthly Income of the Respondents

From the Frequency analysis it is inferred that 41.8% of the respondents have fallen in the income
interval of 20001 to 30000. Like that 22.7%, 26.4% and 8.2% of the respondents are fallen in the
income interval of 10001-20000, 30001-40000 and >40000 respectively. Only 0.9% of the
respondents are in the income interval of 0-10000.

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Marital Status

From the analysis it is concluded that the 89.1% of the respondents are married. And the rest of the
respondents are unmarried.

Type of Loan Borrowed By the Respondents

Based on the analysis it is concluded that 29.1 % of the respondents has been sanctioned Home
Construction loan, 24.5 % of the respondents has been sanctioned Land purchase loan. Like that
Home extension and Home Improvement was sanctioned at the percentage of 20.9% and 19.1%
respectively.

Awareness about the Bank

While analyzing the response it is concluded that 60.9% of the respondents have come to know
about HDFC through Friends. Next advertisement played a major role of creating awareness about
HDFC.

Time Taken to Appraise the Documents

From the analysis it can be inferred that 40% of the respondents are strongly agree that the time
taken for appraising the loan application is very shot.

Quality of Service Received

It is concluded that based on the analysis 43.6% of the respondents are agreeing that the quality of
service they received was good. And 22.7% of respondents are strongly agreed that the quality of
service is good.

Customer Service Representatives are Very Courteous

Frequency analysis shows that the 50.9% agreed that the Customer service representatives are very
courteous. Like that 17.3 % of the respondents are strongly agreed that the representatives are
courteous.

Quick Response to Complaints

From the analysis it is inferred that 46.4% of the respondents had agreed that the Representatives
are quickly responding to the complaints. 18.2% of the respondents had strongly agreed the same.

Customer Service Representative are Very Knowledgeable

From the analysis it is inferred that 59.1% of the respondents agreed and 12.7% strongly agreed
that the customer representatives are knowledgeable.

Satisfaction of Customers with the Products

From the Frequency Analysis it is inferred that 50.9% of the respondents agreed that they are
satisfied with the HDFC home loans products.

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Housing loan availed from other financial Institutions

The analysis result shows that the 68.2% of the respondents has not availed home loans from other
financial institutions. Only 31.8% of the respondents had got home loans from other financial
institutions.

Will you refer HDFC to get Home loans to your friends and relatives?

The analysis result shows that 36.4% of the respondents agreed they will prefer HDFC for further
home loans.

KW & Mann Whitney Test

Hypothesis

Ho – There is no significant relationship between the Educational Qualification of the Respondents

and their Overall satisfaction.

H1 - There is significant relationship between the Educational Qualification of the Respondents and
their Overall satisfaction.

Level of Significance - 5%

Preferred Test - Kruskal Wallis Test

Educational Qualification of the Respondents N Mean Rank

Under Graduate 68 57.13
Post Graduate 42 52.86
Total 110

Test Statistics

Particulars Value
Chi-Square .475
Df 1
Asymp. Sig. .491
Footnote
a. Kruskal Wallis Test
b. Grouping Variable: Educational Qualification of the Respondents

Inference

In the above table the Asymp. Significant value is 0.491 which is higher than 0.05. Hence we
accept null hypothesis. Hence we can conclude that there is no significant difference between the
Educational qualification of the Respondents and their Overall satisfaction.

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Hypothesis

Ho – There is no significant relationship between the Occupation of the respondents and their
Overall satisfaction.

H1 - There is significant relationship between the Occupation of the respondents and their Overall
satisfaction

Level of Significance – 5%

Preferred Test - Kruskal Wallis Test

Occupation of the Respondents N Mean Rank

Self Employed 26 45.08
Professional 11 38.32
Government Employee 38 65.08
Private Employee 35 58.24
Total 110

Test Statistics

Particulars Value
Chi-Square 9.822
Df 3
Asymp. Sig. .020
Footnote
a. Kruskal Wallis Test
b. Grouping Variable: Occupation of the Respondents

Inference

In the above table the Asymp. Significant value is 0.020 which is less than 0.05. Hence we accept
alternative hypothesis. Hence we can conclude that there is significant difference between the
occupation of the Respondents and their Overall satisfaction.

Discussions and Conclusions

Findings

 In HDFC 29.1 % of the respondents borrowed the loans for construction purpose.

 Totally 60.9 % of the respondents came to know about the banks through friend’s advice

 40 % of the respondents said that credit appraisal process has not done in a short span of
time.

 45.5 % of the respondents said that the information regarding application status clearly
explained by the representatives.

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 52.7 % of the respondents said that the representatives are extending their support to get
certificates like encumbrance certificate etc.,

 43.6 % of the respondents were agreed the quality of service provided by HDFC was
good.

 50.9 % of the respondents were agreed that the customer service representatives are
courteous.

 46.4 % of the respondents said that the employees were quick to respond to the customer
complaints.

 59.1 % of the respondents were agreed that the customer service representatives are very
knowledgeable

 40.9 % of the respondents were agreed that the phone calls was quickly transferred to the
person who could answer well

 50.9 % of the respondents were agreed that they are satisfied with the products offered by
the HDFC.

 39.1% of the respondents are preferring HDFC for taking loans in future.

 36.4% of the respondents were agreed that they will refer to the friends and relatives to
take loans from HDFC.

Suggestions

 The Credit appraisal process should be done in the short span of time. Because most of the
respondents think that the credit application process period is very lengthy.

 The phone calls should be transferred to the person immediately who could able to answer.

 HDFC representatives should be helpful to get the certificates like Encumbrance

certificate etc.

 In order to maintain the goodwill forever in the market, the company should improve its
customer – client relationship.

 The company must take care on attending the complaints.

 The company should make intensive plan for rural and backward areas.

 Representatives should say clearly about the interest rates to the Customers before
providing advances to them.

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 Ashok & Abinaya (2017). Asian Journal of Research in Marketing,
Vol. 6, No.1, pp. 1-9.

Conclusion
 From the study it comes to know most of the customers are satisfied with the service of
HDFC Limited. All the loan products are attractive to the customers and also products are
custom made according to the customer needs.

 Some customer feels that they were not informed about the different kind of interest rates.
Because of this they are facing some problems like extending EMI period. Inorder to
increase the customer satisfaction HDFC representatives should clearly mention the
interest rates to the customers before provide home loans.

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