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Mrs. Pankaj Bhardwaj GAURAV BHAMA
Branch Manager BBA-V SEM.

Institute of Management

This Project Report has been prepared towards the partial

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 on unskiasked respondents given by the so

kind respondents.

I extent my gratitude to Mr. Pankaj Bhardwaj, Branch Manager

Who has given an opportunity to undergo training in marketing
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.


1. Preface

2. Acknowledgement

3. Introduction

• Introduction to Project

• Profile of HSBC

• Features and Benefits

• Customer Satisfaction

4. Research Methodology

5. Data Analysis

6. Findings

7. Limitations

8. Conclusion

9. Recommendations

10. Appendix

11. Bibliography

Customer increasing expect higher quality & service & 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 in relation to his expectations. If it performance falls
short of expectation, the customer is dissatisfied. If performance
matches the expectations the customer is satisfied. If 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
details and studying the purchase of credit card from different
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 things that a consumer needs to look for in a credit card
before deciding to purchase it.

What role does brand play.

Other related issues.



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
issued its blue, white and gold BankAmericard to customers 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
help ordinary men and women take control of together. The
BankAmericard, a financial instrument established to drive positive
social change, continued this legenacy of compassionate, customer-
focused banking.

With BanlAmericard international popularity in the 1960s and 1970s

new corporate entity, jointly owned and a operated by license member
institutions, was created to support them. The name “Visa” 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 institutions for decades to come. Hock
oversaw the creation of the first-ever electronic system for handling
credit transactions-an investment in transaction processing
infrastructure which would lead to rapid growth and expansion.
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
billion cards and to its values remain firmly anchored in service,
commitment and innovation. Visa is pioneering the creation of c-
commerce, or universal commerce-the ability to conduct commerce
anywhere, and way. In the real world and online, Visa is leading the
global market with exciting new put on larger and grader and
celebrations in an attempt to out-do each other.
“commerce technologies and capabilities that add convenience 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,
giving its regional offices a high degree of operating and
marketing autonomy, Because Visa’s regional organizations are
closest to their local markets, they know best how to help
member institutions serve their customers. Empowering member
financial institutions-it’s the principle that underlines Visa’s

Visa products and services-including credit, debit and prepaid,

corporate, purchasing and business products-are offered directly
by member financial institutionals to their customers. Visa
international focuses on providing members with a strong
competitive platform, including an advanced transactional
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 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 access, and related programs.

With approximately 22,500 MasterCard, Cirrus and Maestro

members worldwide, MasterCard serves consumers and
businesses, both large and small, in 210 countries and
territories. MasterCard is leader in quality and innovation,
offering a wide range of payment solutions in the virtual and
traditional worlds. MasterCard’s award-wining Priceless®
advertising campaign is now seen in 98 countries 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
association. They established rules for authorization, clearing
and settlement. They also handled marketing, security 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 Japanese’s members joined .
Many countries followed behind the early international members
and by the late 1970s. ICA had members from as far as Africa
and Australia. To reflect the commitement to international
growth, ICA changed its name to MasterCard. In the 1980s,
there was future expansion into Asia and Latin America. In 1987,
MasterCard become the first payment card to be 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.

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
minimum amount each time. You’re charged interest on the
balance you owe ( as high as 26% each year) at the end of each
period, unless you pay the full balance each time your bull

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, over-
the-time fees and other miscellaneous charges. Finally, the
companies profit by charging merchants and service providers a
fee each time a customer uses the company’s credit in 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
charge air fare, cruise fees or hotels fees for a hotel room
booked through a travel agent on an American Express 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

Charge card companies make their profits by charging very high

annual fees- up to $100- and by charging merchants relatively
high fees each time a customer pays using the company’s
charge card.

If you don’t pay your charge card bill in full, you’ll get a one-
month grace period, when no interest is charged. After that,
you’ll be charged interest that averages about 18%. It you don’t
pay after about months, three months, your account will be
closed and your bill sent 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

ATM cards are issued by banks essentially to give bank
customers flexibility in their banking hours . in most areas, with
an ATM card you can withdraw money, make deposit, transfer,
money between accounts, find out your balance, get a cash
advance and even make payments at all hours of the day or

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 themselves. When you pay with a debit card, 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 money you spend comes out of your checking account

Many people prefer debit cards over checks for two

• You do not have to carry checkbook and present
identification, but are still 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

prefer having 20-25 days to pay their credit card bills. Also,
consumers using debit cards don’t have the right to withhold
payment in the event of a dispute with the merchant over the
goods or services paid for. In addition, 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 bank account before the bank is able to complete its
investigation. For this reason, it’s better to use credit , rather than
debit, cards for online purchase.
Used for 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


Electronically processed card that stores monetary value
Value can be stores on a chip or magnetic strip on the card.
Typically used by public utilities where a large number of small
value transactions can replace cash e.g…, MTNL Card, BEST

Has an implanted computer chip incorporated in the card plastic
which gives it the power to perform many different functions like
having a PC in your wallet!
Multiple applications on the same card e.g.. credit, debit,
electronic cash, driving licenses, secure identification hence you
need to carry less cards in your 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.

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
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 after the card operations while the co-branded partner
shared marketing costs and responsibility
E.g. Citibank-Jet-Airways Card, HSBC-PNB card.

To grow a portfolio , the bank enters into partnership with a non-
bank 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 credit card issued by a member in conjunction with an
organization or collective group (e.g. a professional organization
or special interest group) which is identified on the card. The
issuer often pays the organization a royality per card or per
transaction charged.
e.g. Tollygunge Club card, Delhi Golf Club card.


HSBC has its Headquarters in

London. HSBC Holdings plc is one of the
largest banking and financial services
organizations in the world. HSBC’s
international network comprises over
9,500 offices in 80 countries and
territories in Europe, the Asia-Pacific
region, the Americas, the Middle East,
and Africa. With listings on the London, Hong Kong, New York
and Paris stock exchanges, around 190,000 shareholders in
some 100 countries and territories hold shares in HSBC
Holdings plc. The shares are traded on the New York Stock
Exchange in the form of American Depositary Receipts.

Through an international network linked by advanced

technology, including a rapidly growing e-commerce capability,
HSBC provides a comprehensive range of financial services:
personal financial services; commercial banking; corporate,
investment, banking, and markets; private banking; and other

HSBC's origin in India dates back to 1853,

when the Mercantile Bank of India was
established in Mumbai. The bank has since,
steadily grown in reach and service offerings,
keeping pace with the evolving banking and
financial needs of its customers.
The acquisition in 1959 by The Hongkong and
Shanghai Banking Corporation 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
finance the growing trade between China, Europe, and the
United States, HSBC has been an international bank from its
earliest days.
After the Mercantile Bank was acquired by The Hongkong and
Shanghai Banking Corporation, the Flora Fountain building
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 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 in 1987. The organization’s adaptability,
resilience, and commitment to its customers
have further enabled it to survive through clients
as also to a fast growing personal banking
customer turbulent times and prosper through good times over
the past 150 years.

In India, the Bank offers a comprehensive suite of world-

class products and services to its corporate and commercial
banking base.

HSBC Group entities in India

1. The Hongkong and Shanghai Banking Corporation Limited


2. HSBC Asset Management (India) Private Limited

3. HSBC Electronic Data Processing (India) Private Limited

4. HSBC Insurance Services (India) Private Limited

5. HSBC Securities and Capital Markets (India) Private


6. HSBC Primary Dealership (India) Private Limited

7. HSBC Private Equity Management (Mauritius) Limited

8. HSBC Software Development (India) Private Limited

Products /services offered by HSBC

1. Credit Card
a. HSBC Gold Card
b. HSBC Classic Card
2. Loans
a. Home Loans
b. Personal Loans
c. Educational Loans
d. Professional Loans
3. Account
a. Savings Account
b. Fixed Account
c. Demat Account
d. Smart Money Account
e. Current Account
i. Business Select
ii. Business Vantage
iii. Business Account
4. Insurance
a. Personal Insurance
i. Life Insurance
ii. Home Insurance
iii. Hospital Cash Insurance
iv. Car Insurance
v. Personal Account Insurance
b. Business Insurance
5. Wealth Management
a. HSBC Premier
b. Power Vantage
c. Financial Planning Service
d. Business Select
e. Mutual Fund
6. NRI Services
a. Non Residents
b. Returning Non Residents
7. Corporate and Institutional Banking
a. Corporate Banking
b. Treasury and Capital Market
c. Institutional Banking
d. Equities, Corporate Finance And Advisory
e. Payment and Cash Management
i. Payment
ii. Collections
iii. Account Management
iv. Electronic Banking Hexagon
f. Trade And Factoring Services
i. Trade Services
ii. Factoring Services
iii. Precious Metals
iv. Custody And Clearing

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 since then has extended to
Ahmedabad, Bangalore, Hydrabad and Pune, putting volunteers
in touch with NGO's and charities that need a helping hand.

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.

1. Wide acceptability

The card will be accepted at over 18 million establishment

across the world in addition to 1,00,000 establishment in

2. Standard Fees

The annual fees for Gold and Classic Cards are given
below :

Gold Card Classic Card

Jointly Fees 500 300

Annual Fee 2000 700

Add-on 1000 350

3. Rewards
Cardholders will get rewarded just for using their HSBC
Globally valid card for every Rs. 100 charged to the card
holders receive 1 reward point. These paoints can be
accumulated for the year and then redeemed against card
renewal fees, gits vouchers and card upgrade fees. A
minimum of 250 points has to be accumulated in order to
start redeeming.

4. Global ATM Services

Cardholders have access to cash, round the clock, at over

6,00,000 ATMs Worldwide, which include
VISA/MasterCard/Cirrus and all HSBC ATM’s Classic
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. Finance Charges

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 Privileges

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 card from
International Travel House (ITH). In addition ITH will deliver
the tickets free of charge within city limits.

7. Insurance Benefits

Our package of insurance benefits for gold cardholders is

amongst the best in the industry.

• Accident Insurance: Cardholders are entitled to free

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.
• Zero Lost Card Liability :In case a cardholder loses
her/his card her/his will not be liable for any charges
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.
• Lost Baggage Insurance: Cardholders are covered for
loss/theft of checked baggage during domestic and
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 :-

• Delay in checked baggage : Gold cardholders are

covered for US$ 300 in the even of checked baggage being
delayed for more than 6 hours during domestic or
international flights from the scheduled arrival time at the
• Hijack Protection : IN the event of your flight getting
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. Global Calling Card

Cardholders will get a free calling card from Global One.

Which enables them to make long distance calls while
traveling overseas at every competitive rates. These calls are
billed to the cardholder’s credit account and are payable in
Indian rupees.

9. Zero Petrol Surcharge

Cardholders are entitled to a reimbursement of petrol

surcharge that is normally levied on credit card fuel
purchases for amounts between Rs. 400 to Rs. 2500 incurred
at any petrol pump at any city in India.
Features Advantages Benefits

Worldwide • Accepted at all • Convenience

accepted outlets worldwide
(18 Million • Low Risk

• No need to carry
cash while
shopping in India
or abroad.

Free Credit • Pay only 5% of the • Flexibility of

Period amount roll over payment
the credit

• Make only
payments & can
avail the credit

Global ATM • Withdraw cash on • Easy access to

Services CC (40% of the funds.
total Cr. Limit sub.
To availability). • Easy liquidity.

• Up to Rs. 50,000/-
per day
• No need to have
bank a/c & can
still withdraw cash
in case of

Access to your • At ATMs in India,

bank a/c with you can request
your credit card statements,
(ATMC) cheque books,
perform banking

• No need to have 2
different cards & 2
different pins.

Bonus Rewards • For every Rs, 10/- • Saves money

Programme 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.

Insurance * in the event of loss • Safety

baggage or theft,
Privileges insurance covered up • Free Insurance
to US$ 1200
a. Lost baggage

b. Accident • In case of death • Protection

Insurance due to ait
accident, • Safety
insurance cover
up to 20 lacs & in • Free Insurance
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.

C. Purchase • If the items • Safety

Protection purchased during
CC, is danaged or • Minimum loss
lost due to theft or
fire, insurance
cover available up
to value of Rs.

• Claim can be
made within 180
days period from
date of purchase.
D. Zero Lost Card • In case of card • Protection
loss & reporting against misuse
Liability the same
immediately to the • Security
bank will prevent
any misuse of

E. Travel • GCH are covered • Convenient

up to US$300 for
Insurance: emergency • Saves Money
purchase of
• Delay in replacement
checked items.

• Loss of • C/h reimbursed up • Saves Money

passport & to US$ 500 for
travel expenses incurred • Convenient
documents in btaining
documents in
case of loss of

Travel Privileges • Airline tickets can • Saves Money

be booked using
CC at Spl.
Dscount of 3.5% • Convenience
on basic domestic
air fares & 6.5%
on basic intal, air

• The rickets will be

delivered to door
step without any
extra charges.

GLOBAL ONE • Free of charge • Easy access to

Calling card • Amount billed on
CC which reflects • Convenience
in monthly

• Amount billed in
INR which saves
on foreign

• Can make long

distance cals from
any telephone
booth while

• Calls can be made

even without

ADD-ON-CARDS • Primary card • Saves Time

holder can apply
for up to 3 add-on- • Saves Hassles
cards (only blood

• No joining fees

• No documentation

• Add-on cards also

enjoy the same
benefits as
primary card

CARD RENTAL • GCH can avail spl. • Convenient

SERVICES Car rental
services & • Saves Time
discounts @ 20%
on basic rates,
extra hours &
Extra kms. ( Auto
riders Rent-a-car)

DRAFT ON CALL • Normal bill • Convenient

payments can be
made using this • Saves time
• Drafts can be
ordered against
CC over the phone
& the same will be
delivered to the

EMERGENCY • GCH receive • Global

ASSISTANCE global assistance assistance
SERVICES 24 hours a day & 7
days a week. • Toll free
• Assistance is
available by • Confidence
pacing collect call
to respective • Quick service.

• The assistance
services also
include legal,
medical, travel &
other services.

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 and limited knowledge, mobility, and income they 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’s companies are facing their toughest competitors ever.

Therefore companies need to more rapidly into new economy and
employ internet, wireless and other technologies to achieve a
competitor advantage.

Here is big question that how companies can go about wailing

customers and out performing competitors. The answer 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 the center of your culture” companies are adept at
building customers, not just product, they are skilled in market
engineering, not just product engineering.

Whether the buyer is satisfied after purchase depends on the offer’s

performance in relation to the buyer expectations. In general,
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
falls short of expectations the customer is dissatisfied. If the
performance matches the expectations, the customer is satisfied. It
the performance exceeds expectations the customer highly,
satisfied or delighted.

Although the customer centered firm seeks to create high customer

satisfaction, that is not main goal. If the company increases
customer satisfaction by lowering its price or increasing its
services, the result may be lower profits.

The company might be able to increase its profitability by means

other than increased satisfaction for example by improving
manufacturing process or investing more in R&D) ultimately, the
company must operate on the philosophy that it is trying to deliver
a high level of customer satisfaction subject to adverting
acceptable levels of satisfaction to the other stake holder given its
total resources.

When customers rate their satisfaction with an element of the

company’s performance say, delivery the company 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
detail, customer would face a huge survey questionnaire. 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 the perceived satisfaction consumers feel
with different firms, industries, economic sector and national

1. Nature of research –Descriptive

2. Research approach- Sample survey

3. SAMPLE SIZE – 100 No.

4. Method of research –Questionnaire

5. Research Instrument-Random Sampling

6. Findings

7. Suggestions

Research methodology is a way to systematically solve the

research problem. It my be understood as a science of studying
how research is done 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 methods we use in the context of our research study 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 what particular method has been adopted why particular
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 research methodology, research process, research design,

sampling design method of data collection are used in this project.

Research process consist of action or steps necessary for

effective carry out research and the desired of this steps-

1. Formulating the Research problem- The best way of

understanding the problem is to discuss it with ones own
colleagues or with those having some expertise in the matter.

2. Extensive Literature Survey- After formulating the

problem a brief summery of its should be written down. At
this function research should undertake extensive literature
survey concerned with the problem.

3. Development of working hypothesis- After extensive

literature survey, researcher should state in clear terms the
working hypothesis.

4. 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.

- Exploratory research design.

- Descriptive research design.

- Hypothesis testing design.

5. Determining the sample designs- All the items under

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 random sampling


A research design is the arrangement of conditions for collection

and analysis in a manner that aims to combine relevance to
research purpose in economy in procedure.

In this research project descriptive research design are

designed. Because descriptive research studies are those
studies which are concerned which describing the characteristics
of particular individual or a group.

And it is used as-

- Formulating the objective of the studies.
- Designing the methods of data collective
- Selecting the sample
- Collecting the data
- Processing and analyzing the data
- Reporting the finding

To prepare sampling design we should follow these points.

1. Type of universe
2. Sampling unit
3. Source list
4. Size of the sample
5. Parameters of interest
6. Budgetary constraint
7. Sampling procedure
Sampling designs are basically of two types:-
1. Random sampling
2. Non-Random sampling

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 used in lotteries and raffles. For ransom selection
the researcher has to assure that the different units in the
population have equal probability of getting selected. For this now
a days one uses computer for generating random number for
random sampling.

Non –Random Sapling : This type of sampling does not include

any basis for estimating the probability of including units of
population in the sample. The units of population are selected
deliberately assumed to adequately present the population.

In this research project simple questionnaire method are 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 questionnaire consist of a number of questions printed in a

definite order on a form.


1. There is low cost when the universe is large and is widely
spread geo graphically.

2. It is free from the bias of interviewer.

3. Large sample can be made use of and thus the

4. Respondent has adequate time to give well thought answers.


You think promise made by credit card company are fulfilled.

Strongly agree 4
Somewhat agree 8
Neither agree - nor disagree 33
Somewhat disagree 48
Strongly disagree 7


50 48





10 8 7

Strongly agree Somew hat agree Neither agree - nor Somew hat disagree Strongly disagree
You like to recommend your credit card to other
Strongly agree 14
Somewhat agree 16
Neither agree-nor disagree 20
Somewhat disagree 39
Strongly disagree 11


40 39





15 14


Strongly agree Somewhat agree Neither agree - nor Somewhat disagree Strongly disagree
You feel taking credit card was a good discussion
Strongly agree 13
Somewhat agree 26
Neither agree-Nor disagree 27
Somewhat disagree 24
Strongly disagree 10

25 24




Stronglyagree Somewhat agree Neither agree - nor Somewhat disagree Stronglydisagree
Which factors influenced you most to buy credit card
Price 11
Presentation of sales man 13
Free credit period 7
Teachers 6
Insurance cover 18
Cash withdrawal 11
Add on card 7
Reference group 20
Any other 7

20 18 20



7 7 7
8 6

Price Free credit Insurance Add on card Any other
period cover
From where did you come to know about your credit card
Salesman 36
TV 11
Newspaper 9
Bill board 8
Reference group 28
Any other 8

40 36




15 11
8 8

Salesman TV New spaper Bill board Reference group Any other
Would you like to switch over to another company’s credit card
Yes 47 No 53


Do you feel services provided by credit card are according to your
Yes 23 No 77


Do you thick interest rate charged by credit card companies is reasonable?
Yes 6 No 94


After taking credit card is there any increase in your expenditure?
Yes 73 No 27


Do you feel credit card industry is a sinking boat in Indian context
Yes 61 No 39



1. Most of the answer our indicate towards disagreement, it clearly

shows customers thick that premises made by credit card
comprises are not fulfilled; there why filled premises may be like
difficulty in claming insurance or free services.

2. Customers are unsatisfied with credit card services so 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 answer is spread evenly oven somewhat agree, neither

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

4. As we can see friends or the existing users of credit card

significantly influenced. The purchase of credit card which
indicate. That it is the most creditable source of information
insurance policies are also major attraction for the customer &
presentation 7 the way in which salesman convince the
customers also plays important.
5. The awareness about the credit card is through salesman, 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 are almost evenly divided over this question which shows
that them is no major product differentiation in the credit card and
customer perceive that all of the them are similar.

7. Clearly, the services of credit cards have not met the expectations of

8. the interest changed by credit card companies amount to 36% per

annum which in very high customers are aware of this fact & almost
all of them expressed this displeasure.

9. Credit card have led to increase in the expenditure of 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.
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.


During our project we got an opportunity to study the credit card

industry of India. It is a relatively new business with intense
competition & each firm trying to capture each others market
share. It was a great learning experience & we concluded
following points:

1. Credit card industry is still in a nascent phase in India with an

underdeveloped infrastructure.

2. Acceptability of credit cards is limited to large cities having

malls, big retail stores

3. The penetration of credit cards is limited to large cities i.e.

credit card companies don’t have many customers in tier II &
tier III cities.

4. The companies are indulging in aggressive marketing; they

are not really concerned in satisfying the customer’s need.

5. There is no major product differentiation in the various credit

cards; all of them are providing similar services.

6. The companies are not trying to retain the customers; they

are more interested in broadening the customer base.

At last we conclude that CreditCard is at declining phase in


(1)Company should advertisement through various 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 price & quality factor. The company should
concentrate over the price factor of the program so that
new customer could be attracted to wards the program
although quality factor of the program is satisfactory.

(3)The company must conducted the satisfaction survey

time to time so that company could know the
satisfaction level of the consumer. It will be more
beneficial to company in making new strategies &

(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 is low, the company should

be more concentrate to increase the awareness of the
company. The company can use many marketing total
to perform this work.

(7)The company should be conducted the demo of

program complaint, policies & suggestion. It can
improved it market share and consumer satisfaction.

1. You think promise made by credit card company are fulfilled.

a. Strongly agree
b. Somewhat agree
c. Neither agree - nor disagree
d. Somewhat disagree
e. Strongly disagree
2. You like to recommend your credit card to other
a. Strongly agree
b. Somewhat agree
c. Neither agree-nor disagree
d. Somewhat disagree
e. Strongly disagree
3. You feel taking credit card was a good discussion
a. Strongly agree
b. Somewhat agree
c. Neither agree-Nor disagree
d. Somewhat disagree
e. Strongly disagree
4. Which factors influenced you most to buy credit card
a. Price
b. Presentation of sales man
c. Free credit period
d. Teachers
e. Insurance cover
f. Cash withdrawal
g. Add on card
h. Reference group
i. Any other
5. From where did you come to know about your credit card
a. Salesman
b. TV
c. Newspaper
d. Bill board
e. Reference group
f. Any other
6. Would you like to switch over to another company’s credit card
Yes No
7. Do you feel services provided by credit card are according to
your expectations?
Yes No
8. Do you thick interest rate charged by credit card companies is
Yes No
9. After taking credit card is there any increase in your
Yes No
10. Do you feel credit card industry is a sinking boat in Indian

Yes No

2. Book by Philip Kotler on Marketing Management

3. A book on Marketing Research by Luck & Rubin

A book on Marketing of Service by Vallarie A. Zeithaml &

Mary Joe Bitner.

5. Training Material presided by HSBC.