Title: Customer centric practices: implications for banks in India

Authors: Dhananjay Bapat

Addresses: National Institute of Bank Management (NIBM), India

Abstract: Researchers and practioners have proclaimed the adoption of customer oriented philosophy in banks as the key to maintaining a sustainable competitive advantage. By considering the views of 232 bank employees, the results indicate that using factor analysis, four factors responsible for customer orientation in Indian banks are customer value creation, better customer understanding, frontline customer relationship and solution through empowerment. The two independent sample t-test indicated the differences on variables such as comprehensive need analysis, frontline customer understanding, tailor products, growth and employee productivity between higher and lower levels of employees. Using regression analysis, we find that comprehensive need analysis and incentives of profitability as the predictor for growth; frontline customer understanding and suggestions for new products for profitability and suggestions for new products and tailor products for employee productivity.

Keywords: customer orientation; factor analysis; customer value creation; customer understanding; frontline customer relationship; empowerment; growth; profitability; employee productivity; India; banking industry; needs analysis; tailored products; banks.

DOI: 10.1504/IJSSCI.2014.066520

International Journal of Services Sciences, 2014 Vol.5 No.2, pp.133 - 153

Received: 06 Jun 2013
Accepted: 16 Jun 2014

Published online: 14 Jan 2015 *

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