This document provides an analysis of service quality at State Bank of India (SBI). It begins with an overview of SBI's history, operations, products/services. Chapter 2 discusses the objectives and importance of analyzing service quality gaps. Chapter 3 examines SBI's internal/external marketing initiatives and strategies. It finds issues with change management and a need to improve customer care. Chapter 4 analyzes service quality gaps between expected and perceived levels. The largest gaps were in attention to individual customers and personal service. Key findings show satisfaction levels were higher for reliability, responsiveness and assurance, but lower for tangible factors and empathy. Recommendations include improving understanding of customer needs, credibility, willingness

1. SERVICE MARKETING
ASSIGNMENT
ON
2017
Submitted By:
Pranjal Pragya - 22
Nikhil Agarwal - 32
Subrata Kr. Dey - 45
Abhishek Roy - 52
Prateek Kr. Mishra - 56
(Marketing – II)

2. CONTENTS
Index Page No.
Abstract………………………………………………………………………. 01
Chapter – 1
State Bank of India………………………………………………………….. 02
1.1 About SBI……………………………………………………………….. 02
1.2 History………………………………………………………………….... 02
1.3 Operations……………………………………………………………….. 02
1.4 SBI Services……………………………………………………………... 03
1.5 Product and Services…………………………………………………….. 03
1.6 New Product Introduced………………………………………………… 04
1.7 SBI Retail Banking……………………………………………………… 04
Chapter – 2
Objective……………………………………………………………………... 05
2.1 Objectives of the Study…………………………………………………. 05
2.2 Problem Statement……………………………………………………… 05
2.3 Importance of the Analysis……………………………………………… 05
Chapter – 3
Scenario in SBI………………………………………………………………. 06
3.1 Internal Marketing Initiative…………………………………………...... 06
3.1.1 Issues……………………………………………………………….. 06
3.2 External Marketing Initiative………………………………………….... 06
3.3 Interactive Marketing Initiatives………………………………………... 07
3.4 Service Marketing Strategies of SBI WRT Porter’s Model…………….. 07
3.5 Analysis of Strategies Taken by SBI……………………………………. 08

3. Index Page No.
3.6 SWOT Analysis of SBI WRT Service Delivery………………………… 09
Chapter – 4
Analysis………………………………………………………………………. 10
4.1 Service GAP Between Expected & Perceived Service Quality…………. 10
Chapter – 5
Key Findings…………………………………………………………………. 12
Chapter – 6
Recommendation…………………………………………………………….. 13
Bibliography……………………………………………………………………. 14

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ABSTRACT
Service quality plays an important role in determining customer satisfaction. The difference
between the expected service quality and the perceived service quality is said to be gap
analysis of the customers. The banking industry like many other financial service industries
is facing a rapidly changing market, new technology, economic uncertainties, fierce
competition and more demanding customer and the changing climate has presented an
unprecedented set of challenges. Banking is a customer oriented service industry, therefore
the customer is the focus and customer service is the differentiating factors. In the backdrop
of all these developments we make an attempt to explain customer service satisfaction in
State Bank of India. For this, descriptive research design is used where the information and
data were collected through direct interview with the branch manager of SBI, CMPDI branch
and from different customers of State Bank of India.
The analysis clearly shows that there exists wide perceptual difference in State Bank of India
regarding overall service quality with their respective customers. The work has been carried
out with the objective to analyse the service quality gap and areas where the SBI need to
focus and strengthen their service management practices.
Finally the study concludes by giving some recommendation to close up the gap so that the
SBI could meet up the expectation of their customers.

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Chapter - 1
State Bank of India
1.1 About SBI
State Bank of India (SBI) is the largest public sector bank in India. Launched in the first
decade of the nineteenth century the bank has played a pivotal role in establishing the
organised banking services sector across India by way being repositories to savings and
lenders to leading businesses across India. State Bank of India has thus played a key role in
the economic development of India.
State Bank of India along with its 5 associate banks (which are expected to be merged with
SBI soon) has a network of over 13000 branches located across the most remote parts of
India and catering to people from all works of life. State Bank of India provides services in
both the personal banking and corporate banking segments.
1.2 History
The roots of the state bank of India rest in the first decade of 19th century, when the bank
of Calcutta, later renamed as bank of Bengal was established on 2 June 1806. In 27 January
1921 reorganized bank name as imperial bank of India. The provision of the state bank of
India act 1955, the reserve bank of India, which is India’s central bank, acquired a controlling
interest in the imperial bank of India. On 30 April 1955 the imperial bank of India become
state bank of India. Headquarters is located in Mumbai, Maharashtra. It is owned by
government of India.
1.3 Operations
SBI provides a range of banking products through its network of branches in India and
overseas, including products aimed at non-resident Indians (NRIS). SBI has 14 regional hubs
and 57 zonal offices that are located at important cities throughout India.

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 Domestic presence- SBI has 18,354 branches in India.
 International presence- The bank had 191 overseas offices spread over 36 countries
having the largest presence in foreign markets among Indian bank.
 There are 1,155 SBI branches in Tamilnadu.
 In Salem there are 51 branches.
SBI is one of the largest employers in the country having 222,033. There are 45,132(20%)
female employees, 2,610 (1%) disabilities. SBI had 42,744 schedule caste (19%), 17,243
schedule tribe (8%) of employees.
1.4 SBI Services
State Bank of India Services are most varied and innovative amongst all its contemporaries.
State Bank of India Services includes a host of products and services to suit all types of
consumers.
 Banking Subsidiaries - State Bank of Bikaner and Jaipur (SBBJ), State Bank of
Hyderabad (SBH), State Bank of Indore (SBIr), State Bank of Mysore (SBM), State
Bank of Patiala (SBP), State Bank of Saurashtra (SBS) and State Bank of Travancore
(SBT).
 Foreign Subsidiaries - State bank of India International (Mauritius) Ltd., State Bank of
India (California), State Bank of India (Canada) and INMB Bank Ltd, Lagos.
 Non-Banking Subsidiaries - SBI Capital Markets Ltd (SBICAP), SBI Funds Management
Pvt Ltd (SBI FUNDS), SBI DFHI Ltd (SBI DFHI), SBI Factors and Commercial Services Pvt
Ltd (SBI FACTORS) and SBI Cards & Payments Services Pvt. Ltd. (SBICPSL).
 Joint Ventures - SBI Life Insurance Company Ltd (SBI LIFE).
1.5 Product & Services
 Domestic Treasury
 Broking Services
 Revised Service Charges
 ATM Services
 Internet Banking
 E-Pay
 E-Rail

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 Safe Deposit
 MICR Codes
 Foreign Inward Remittances
1.6 New Product Introduced
 Zero Balance Saving A/c
 Minor Bank A/c
 Minor A/c Linkage to Recurring A/c
 Agrikart
 Family Tree A/c
 Pension A/c
 Multi-Currency A/c
 Corporate Loan Without Security on Profit Sharing
 0% Foreclosure Charges
 Resource RM for Corporates
1.7 SBI Retail Banking
 Term Deposits
 Recurring Deposit
 Housing Loan
 Educational Loan
 Personal Loan
 For Pensioners
 Against Mortgage of Property
 Against Shares & Debentures
 Plus Scheme
 Medi-Plus Scheme
 Rates of Interest
Apart from these, SBI also provides several other NRI services. The State Bank of India has its
presence all over India with 16,000 branches. Not only this, the bank has made its roots
secured internationally as well. At present, SBI has 131 branches in 32 countries all over the
world.

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Chapter - 2
Objective
2.1 Objectives of the Study
To identify the gap between customers expectation and their perception of service quality.
2.2 Problem Statement
Providing good service quality is the major concern of banking sector. Service gap is the
difference between the quality of service perceived by the customer and expected over a
period of time from the banker. Success or failure of a business is determined by Customer
satisfaction. As the exposure, knowledge and awareness of the customers keep on
increasing, the expectation of the customers. Now the bankers have to meet out the
expectations of their customers or else the customer will switch over to other competitor
bank that provides better service. This research article studies the difference between the
expected service quality and perceived service quality in SBI in Salem city. The following
question is arising to the customers of the bank.
 What approach should be followed by SBI to provide best service?
 Does SBI give enough awareness about schemes?
 To what extend SBI satisfies its customers?
2.3 Importance of the Analysis
The purpose of this study is to observe and analyse the satisfaction of customer’s towards
service quality and to find out the problems encountered by the customers. Research has
been conducted in order to critically evaluate and examine the customer’s satisfaction
towards service quality in SBI. This study highlights the importance of service quality of SBI.

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Chapter - 3
Scenario in SBI
3.1 Internal Marketing Initiative
 The top management realized that to achieve the transformation they sought,
getting the grassroots level employees on board was extremely important. So a
massive internal communication initiative called “Parivartan” was means
transformation/change was launched.
 The initiative was aimed at obtaining the support and acceptance of employees for
the change initiatives undertaken by the bank, and explaining to them why change
was necessary. The project also sought to bring about a change in the attitude and
approach of the employees and to help them develop a more customer-centric
approach. According to SBI, the program succeeded in achieving its objective.
Industry observers too appreciated the initiative.
3.1.1 Issues
 Understand the issue and challenges in change management.
 Understand the issues and challenges in communicating a change initiative.
 Study the Parivartan internal communication initiative and understand how SBI tried
to change the attitude and mind-set of its grassroots level employees.
 Appreciated the importance of HR in an organizational transformation initiative.
3.2 External Marketing Initiative
SBI carried various marketing initiatives to enhance its reach like:
 They included segregating and targeting existing high value customers, cross sales of
other products, setting up call centres and outbound sales force to secure new
customers.

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 Plans were also made to utilize database marketing to pursue large and medium
sized corporate, government and trade finance customers.
 Database marketing was expected to draw increased revenue from cross selling,
lower costs and increased customer loyalty.
 SBI also introduced various other ways of reaching out to customers like extension of
hours of work and aggressive marketing through print & Television media.
 SBI increased daily working hours by two hours and Sunday banking was introduced.
3.3 Interactive Marketing Initiatives
 SBI is today using RFID technology in smart cards which work in conjunction with a
mobile phone working on near field communication technology (NFC). Through it
transactions can happen in both online & offline mode & allows real time updating
of account balances. This allows a better customer relationship management.
 In addition to that at many branches of SBI customer relation officer have been
deployed to make the customers aware of the services, professional offering &
various loan schemes to minimize the interaction gap between the employees &
customers. It is also carrying out pilot projects in the rural areas for carrying out
disbursements for the NREGS (National Rural Employment Guarantee Scheme).
3.4 Service Marketing Strategies of SBI WRT Porter’s Model
 Participation in various customer exhibitions & meetings Threat to suppliers
 Tie ups with builders & vehicle dealers
 Festive loan Threat of bargaining
 Advertising in TV & newspaper Power of customers
 Oral marketing
 Professional offerings Threat of competitors
 Advertisement at display boards Substitutes & new entrants
 Targeting rural customers

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3.5 Analysis of Strategies Taken by SBI
To combat threat of new
Entrants & competitors
To combat buyer & supplier threat
External Marketing
Internal Marketing
Interactive Marketing
To combat threat
to substitute
1995: Imperial Bank of India became State Bank of
india
2001: KPMG was appointed as a consultant for
preparing an IT plan for SBI. Core banking proposed,
FNS, SC & comlink selected for implementation.
2002: SBI launched a project to network, more than
14,000 domestic & 70 foriegn offices & branches. All
branches computerized on decentralized system.
2004: Business Process re-engineering implemented
& six sigma rolled out. SBI launched initiative for core
banking system for integrating all its branches
2008: SBI on becoming the 2nd bank in the worls to
have 10,000 branches.

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3.6 SWOT Analysis of SBI WRT Service Delivery
`
SBI
SWOT
Analysis
Strength
 Nationalised bank
Fair Practices
Largest network
Threat
Competition from private
& international banks
Customers retention due
to multiple banking
Loss of market shares
Weaknesses
Customer care
Quick Operation
Oppertunity
Rural Banking

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Chapter - 4
Analysis
4.1 Service GAP Between Expected & Perceived Service Quality
Source: Primary data A mu, Aligarh. “Competitive service quality assessment of SBI”
The result of the table shows the service gap between the customers perceived service
quality and customer expected service quality. The result reveals that the expectation is
more than the perceived service quality. Employees at banks should be well dressed & neat
in their appearance shows the least gap score 0.59, the physical facilities at banks should be
visually appealing 0.74, Materials associated with the service (pamphlets or statements)
should be visually appealing at a bank 0.97 these three are the least gap score. The top
three gap score is Banks should give customers individual attention 2.4, Banks should have

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employees who give customer’s personal service 2.38 and the employees of banks should
understand the specific needs of their customer.
Source: Primary data Amu, Aligarh. “Comparative service quality assessment of SBI”
12%
20%
25%
16%
27%
Service GAP
Tangibility
Reliability
Responsiveness
Assurance
Empathy

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Chapter - 5
Key Findings
 SBI has more satisfaction level of respondent for reliability, responsiveness &
assurance.
 Most of the respondents were less satisfied as far as visually appealing physical
facilities concerned and neat appearing employees are concerned.
 Insisting on error-free records the difference in score was huge for SBI. Also there
are moderate differences in score for performing the service correctly the first time
for SBI.
 For employees telling customers exactly what services will be performed difference
is so large for SBI.
 Whereas for SBI they are almost performing well on responsiveness dimension, but
they need improvement on employees always being willing to help customers.
 Employees telling customers exactly what services will be performed and employees
are never too busy to respond to customer’s request for these 2 questions both the
banks had less satisfaction of customers so by focusing on this to factors they can
improve satisfaction level.
 Customer feeling safe in their transaction for this question, score of SBI is more.
 Employees having enough knowledge to answer customer’s questions, here the
banks need to improve.
 SBI has to improve in all aspects for the dimensions empathy. Mainly they have to
focus on giving customers individual attention and employees giving customer
personal attention as they were more lagging behind.
 The bank need to improve its service for employees giving customers personal
attention, operating hours convenient to all their customers, having the customer’s
best interest at heart and the employees understanding the specific needs of
customers as there were more numbers of respondents who were either not
satisfied or less satisfied.

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Chapter - 6
Recommendation
 The main areas where SBI needs to improve upon understanding the customer
needs and enhancing their credibility as these factors are important for banking
industry and they are lagging in these two factors.
 SBI should make sure that the employees should be self-driven and self-motivated,
always being willing to help customers, on giving customers individual attention.
Personalization is very important factor to retain and attract new customers.
 As SBI is performing poorly in all the aspects of empathy dimension, so SBI should
concentrate on this dimension more.
 Beside above the other five factors where SBI should work on are Appearance,
Promises, Doing it right, Competency, and Approachable as these are the areas
where either SBI is not performing well or not doing up to the mark.
 SBI should concentrate on insisting on error free records, on performing the service
correctly the first time and employees telling customers exactly what service will be
performed.
 SBI should increase satisfaction level of their customers by mainly focusing on
following factors:
 Under promising and over delivering
 Providing services at the time the service was promised
 Performing the services correctly in the first time
 As on above factors, most of the respondents show neither satisfied nor dissatisfied,
so by improving this factors satisfaction level can be improve.

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Bibliography
Raja, P. L. (2017, February 15). Retrieved September 15, 2017, from
www.allresearchjournal.com:
http://www.allresearchjournal.com/archives/2017/vol3issue3/PartN/3-3-87-113.pdf
Thomas, A. K. (2012, October 10). Retrieved September 15, 2017, from www.scribd.com:
https://www.scribd.com/doc/109561473/Service-Quality-Gap-Analysis-in-State-
Bank-of-India#user-util-view-profile