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1 IMPACT OF THE EQUITY, SERVICE VALUE CHAIN AND CUSTOMER RELATIONSHIP MANAGEMENT IN ENHANCING CUSTOMER SATISFACTION (WITH REFERENCE TO SELECTED INDIAN BANKS, BANGALORE) *Dr.P.Pinakapani Professor **Ajatashatrusamal Research Scholar Rayalaseema University ABSTRACT The present research study is an attempt to enhance customer satisfaction in relation to selected banking services with the combination of tested models namely Brand Equity, Service Value Chain and Customer Relationship. All the above said models are developed individually in the context of how to offer customer satisfaction. The applied structure of this investigation depends on customer based brand value called the Brand Resonance display, which contains six building squares, in particular, brand salience, brand performance, brand imagery, brand judgment, brand feelings and brand resonance, The value chain model consist of four building blocks like culture and leadership, banking operation services, hassle free documentation and internet/ E- Banking technology services and Customer Relationship Management models consist of Identification of perspective and potential customer and acquisition, Product/service value Proposition, Product/ service portfolio analysis and mutually beneficial CRM. The influence of all the three models result the enhancing the customer satisfaction in the banking sector. The correlation was conducted to know the relationship among the Brand Equity model, Customer Relationship Management model and Value Chain model and customer satisfaction. There exists a high degree of positive correlation between Brand Equity and Customer Relationship Management model.a moderate correlation between Value Chain model, Brand Equity model and customer satisfaction. Customer Relationship Management model highly influenced the customer satisfaction especially banking sector. The multiple Regression analysis indicates the variation in the customer satisfaction is influenced by Brand Equity model, Customer Relationship Management model and Value Chain model Keywords: Brand resonance, Brand equity, Banking services, value chain and customer relationship management Introduction Service area is the real income supporter of the Indian Economy. Structured time tested Indian banking system is the financial back bone for Indian budgetary segment. With the changing times and customer needs, Indian banking offers a few services to the customers. A definitive target is to offer most extreme fulfilment to the customer. Several earlier studies on services of Indian banking sector has thrown light on the steps to be undertaken to give utmost satisfaction to the customer. The two standard ideas in the services in particular chain of service in consecutive request and customer relations are executed independently. Be that as it may, examines on effect of brand on consumer loyalty are not very many. A few research works contemplate and independently uncovered the significance of Value chain and CRM hones in determining consumer loyalty. After an extensive review of literature through recognized proposition works, diary productions, news articles and other significant writing it is comprehended that few research work distinguished hole among customer desires, discernment and fulfilment. Academic research audit has demonstrated that not very many investigations have considered supposition and perspective of staff individuals. Be that as it may, with the evolving times, consideration and clubbing of new factors to upgrade the consumer loyalty prompting delightness has not occurred i.e the current models have not truly considered harmony of three factors to be specific value chain, customer relationship management practices and brand Equity. Review of Literature During the course of the study the following research literature related to Customer relationship management were referred: Vol: I. Issue LVII, November

2 Analyzing the Brand Equity, Service Value chain and Customer Relationship Management model in enhancing customer satisfaction in selected IndianBanks, Bangalore Feldwick, (1996) explored the concept and developed an interesting perspective on the brand equity topic. Actually, the author sets three different ways in which the term can be used. Firstly, brand equity can be applied to evaluate the brand as separate asset with financial characteristics. This financial viewpoint happens when the brand is sold and included on the company s balance sheet as an asset. The second interpretation comes as a measure of the strength of the customer s relation with the brand. Last, the third perception is a result of the associations and ideas the costumers have about the brand and is the image which sets on the people s mind. Norzalita Abd Aziz and NorjayaMohd Yasin (2010) in their investigation on Analysing the Brand Equity and Resonance of Banking Services: Malaysian Consumer Perspective concentrates on the calculated system of this research and depends on customers based Brand equity called the Brand Resonance model, which involves six building pieces, in particular brand salience, brand performances, brand imagery, brand judgment, brand feelings and brand resonance. The outcomes show that there are strong, positive and critical connections between brand performances and brand judgment, and between brand performances and brand feelings, likewise between brand performances and brand resonance, brand judgment and brand resonance and additionally between brand feelings and brand resonance. The regression result show that exclusive Brand Feelings, Brand Judgments and Brand Performance have a significant influence on Brand Resonance. This article is thought to be the base for data analaysis research. Mohammed Alamgir & Mohammad Shamsuddoha (2015) In this research they have studied about Customer relationship management can enhance performance of the organization through effective application of customer knowledge and maintenance of relationships with valued customers and in this study they have found some factors like customer knowledge and social rapport A Qualitative research approach has been taken in this study where ten customer-service managers of different telecom operators of Bangladesh have been interviewed. To determine the factors along with related variables and also to develop a research model, a content analysis technique has been utilized. The results of the interviews identified three factors affecting CRM success. This study also discusses about the implications of the model. Dr. V. Renuga & D. Durga (2016) In their research they have studied about highly competitive business environment companies are not capable to longer survive with a transactional attitude towards customers and in this research they have studied to understand the concept of CRM, CRM practices in Banking Sector and their benefits in the context of banking sector. The aim of this research is to develop a reliable and valid customer relationship management scale specifically catering to Indian banking sector. Today, customer satisfaction is the centre of marketing activities. In the context of Liberalization, Privatization and Globalization to be successful in the intensively competitive environment, banking sector is bound to attach importance to customer satisfaction. Ching Chyi Lee and Jie Yang (2000) built up a Value Chain model demonstrate Knowledge Management for based on review of literature and contextual analysis at Chinese University of Hongkong. They proposed a Knowledge Value Chain model demonstrate for information industry. The model delineates the secondary activities (like information framework, Knowledge worker recruitment, Knowledge storage capacity, customer supplier relationship, chief knowledge officer and management) and primary activities (like Knowledge acquisition, Knowledge innovation,knowledge perception,knowledge integration &Knowledge dissemination). The examination additionally gave an instrument to coordinate every one of these segments prompting knowledge performance. They made a recommendation that Knowledge Management manages the way an organization plays out its individual information exercises and sorts out its whole Knowledge Value Chain. The authors recommended that the competitive advantages of the firm grows out of the way organizations arrange and perform primary and secondary exercises in knowledge Value Chain which ought to be measured by the center skill of partnership. Gabriel (2005)has directed a survey construct investigate with respect to Value chain in higher education and related fields. The author found that some the examination ponders adjusted the essential Value chain model of Michael Porter in clarifying primary and secondary activities of highereducation framework. The author likewise found that a portion of the examination considers pronounced that the essential Value chain model of Michael Porter can't be adjusted and require a few alterations particularly for benefit associations and particularly higher education division needs a particular Value chain demonstrate which can clarify process and segments of significant worth including this segment. Research Methodology Statement of the problem Services sector is the major revenue contributor to the Indian Economy. Strong Indian banking sector is one of the major pillar for Indian financial sector. Banking sector offers several services to the customers. The ultimate objective is to offer utmost satisfaction to the customer. The two principle concepts in the services namely chain of services in sequential order and customer relations are executed separately. However, studies on impact of brand on customer satisfaction are very few. Several research studies separately revealed the importance of Value chain and CRM practices in deriving customer satisfaction. After a study of various earlier research studies through identified thesis works, journal publications, news articles and other relevant literature it is understood that several research work identified gap among customer expectations, perception and satisfaction. Review of literature has shown that very few studies have considered opinion and view of staff members. But with the changing times, Vol: I. Issue LVII, November

3 inclusion and clubbing of new factors to enhance the customer satisfaction leading to delightness has not taken place i.e the existing models have not seriously considered togetherness of three factors namely value chain, customer relationship management practices and brand equity. Hence, this study has considered the bank executives opinion and views and identified lack of application togetherness of value chain, customer relationship management practices and brand equity as a research gap. Objectives To construct and examine the value chain, Customer Relationship Management & Brand Equity model in enhancing customer satisfaction. To identify the impact of Brand Equity and Value Chain on customer satisfaction Research methodology Research design The research design is empirical in nature since the study is conducted by using both analytical and diagnostic type of research Data collection Primary Data Primary data has been collected randomly from 400 customers from various bank branches with the help of a well structured, pilot tested questionnaire. Secondary Data was collected from relevant books, banking and management journals, Newspapers, RBI reports and annual reports of selected banks. Sample Selection The focus of this study was to establish the Influence of Brand Equity, Services Value Chain and Customer Relationship Management practices in enhancing Customer Satisfaction in selected Indian Banks, Bengaluru. Over a period of time Bangalore city, transformed into one of the metro city in India. Almost every national and international bank has their branch in Bangalore offering various services and financial products to the utmost satisfaction of their customers. From the pilot study and also from the review of literature it is found that almost all banks have their own CRM practices. However, for the study at random researcher has chosen 40 Banks, which has shown high profit margin continuously for three years as criteria. Sampling technique Simple Random sampling method was employed to select the sample respondents from the selected 40 Banks in the Bangalore region and selection of 10 customers from each and totally 400 customers were chosen. EQUITY, VALUE CHAIN AND CRM MODEL Brand Equity SALIENCE IMAGE PERFORMANCE JUDGEMENT Mode CRM IDENTIFICATION OFPROSPECTIVE &POTENTIALCU STOMER AND ACQUISTION PRODUCT/ SERVICE VALUE PROPOSITI ON PRODUCT/ SERVICE PORTFOLIO ANALYSIS MUTUALLY BENEFICIAL CRM FEELING AND VALUE ENHANCING CUSTOMER SAISFICATI ON VALUE CHAIN MODEL CULTURE AND LEADERSHIP BANKING OPERATION SERVICES, HASSLE FREE DOCUMENTAT ION INTERNET/ E- BANKING TECHNOLOY SERVICES Plan of Analysis The data collected was organized as simple tables and further analysed with the help of appropriate statistical tools such as Correlation analysis, Regression analysis and ANOVA test etc., for logical interpretation of the data collected. Scope of the study The study is confined to Bengaluru city in Karnataka. It was carried out for a period of three months between May to July Vol: I. Issue LVII, November

4 TABLE NO.1.0 RELIABILITY STATISTICS The developed questionnaire has been exposed to Cronbach Alpha for reliability and the necessary values are presented below: Cronbach's Alpha No. of Items The internal consistency of the instrument is tested with reliability analysis and the Cronbach's Alpha is above 0.90 which is shows that the Questionnaire has high reliability. Correlations Time Brand Equity CRM model VCHMODE L Mean customer satisfaction Pearson Correlation **.781 **.681 ** Brand Equity Pearson Correlation.808 ** **.819 ** CRM model Pearson Correlation.781 **.859 ** ** VCHMODEL Mean customer satisfaction Pearson Correlation.681 **.819 **.796 ** 1 **. Correlation is significant at 0.01 level (2-tailed). Regression Variables Entered/Removed a Variables Entered Variables Removed Method 1 VCHMODEL, Brand Equity, CRM. Enter model b a. Dependent Variable: Mean customer satisfaction b. All requested variables entered. Summary R R Square Adjusted R Square Std. Error of the Estimate a a. Predictors: (Constant), VCHMODEL, Brand Equity, CRM model Vol: I. Issue LVII, November

5 ANOVA a Sum of Squares df Mean Square F Sig. 1 Regression b Residual Total a. Dependent Variable: Mean customer satisfaction b. Predictors: (Constant), VCHMODEL, Brand Equity, CRM model Co-efficients Standardized Unstandardized Coefficients Coefficients t Sig. B Std. Error Beta (Constant) Brand Equity CRM model VCHMODEL a. Dependent Variable: Mean customer satisfaction FINDING AND DISCUSSION The correlation table indicates the extend of relationship between Brand Equity model, Customer Relationship Management model and Value Chain model and customer satisfaction. There exists a high degree of positive correlation between Brand Equity andcustomer Relationship Management model. As per as extend of relationship between customer satisfaction and three models are concerned there exist high positive correlation between Customer Relationship Management model and customer satisfaction. A moderate correlation between Value Chain model, Brand Equity model and customer satisfaction. It can be inferred that Customer Relationship Management model highly influenced the customer satisfaction especially banking sector. The Regression analysis indicates that high degree of model fit between the four components such as Brand Equity model, Customer Relationship Management model and Value Chain model and customer satisfaction. These confirmed by high R-square value of Hence it can be inferred that 70.4% of the variation in the customer satisfaction is influenced by Brand Equity model, Customer Relationship Management model and Value Chain model. The high Beta Co-efficient of for Customer Relationship Management model further confirms that it significantly influences the customer satisfaction in the banking sector. Summarization of the outcome The present study has highlighted the significance factors influencing the Brand Equity, Service Value Chain model and Customer Relation Management in enhancing the customer satisfaction with reference to banking sector. References 1) Pinakapani.P & Ajatshatru Samal (2017) Study on The Perception of Bank Executives on Customer relationship Management Practices in selected banks in Bengaluru,; Publisher International Journal of Management & Social Sciences (IRJMSS), ISSN: : 2) Pinakapani.P, Dynamics of Retail Markets, ICFAI University Journal of Services Marketing, Vol.VI No.3, Sep 2008, PP ) Pinakapani.P 2016, Retail Services: Assessing Market Opportunity and Delivering to Customer: An empirical study Strategies for Business Excellence: Challenges and Opportunities ISBN: ) Pinakapani.P 2012 An Empirical Study on Un-Organised Retail Business Innovations: A New Paradigm in Management ISBN No: ) Ajatshatru Samal (2013) A study on Competitive Indian Banking Industry with reference Pre E-Banking and Post E- Banking, Publisher International Journal of Research in Commerce, IT & Management, (IJRCM) Vol No-3, Issue No- 05(May),ISSN ) Ajatshatru Samal (2013) A Study on Consumer Buying Behaviour towards organized and unorganized retail stores in Bangalore city., Publisher International Journal of Management Research& Business Strategy, (IJMRBS) Volume2 No-03ISSUE No-05, July. ISSN: X 7) Ajatshatru Samal(2012) E-Learning and Role of Training in SME s. Publisher Presidency Journal of Management Thought & Research, (PJMTR) June Vol No-3 ISSN : Vol: I. Issue LVII, November

6 8) Aaker, D.A. (1991). Managing Brand Equity. New York: Macmillan. Aaker, D.A. (1996). Measuring brand equity across products and markets. California Management Review, 38, ) Ajatshatru Samal(2013) E-CRM Practise and Customer Satisfaction in Postal Insurance Global Opportunities & Challenges in Innovation & Creativity. ISBN ( ), 10) Atilgan, E., Safak, A., and Serkan, A. (2005). Determinants of the brand equity. A verification approach in the beverage industry in Turkey. Marketing Intelligence & Planning, 23, ) Ajatshatru Samal(2012) Gaining Strategy Advantage through Successful co Branding on Contemporary Issues & Challenges in Corporate Excellence, ISBN ) 12) Ajatshatru Samal(2011) Enhancing Constituent perceptions with CRM for Public Sector: Advancing beyond Efficiency and Service Improvement India Inc Challenges and opportunities ISBN ). 13) Kumaravel V, Kandasamy C. Measuring customer based brand equity on hypermarket store in India. European Journal of Social Sciences 2012; 28(3): ) Bello, D.C., and Holbrook, M. B. (1995). Does an absence of brand equity generalize across product classes Journal of Business Research, 34, ) Ajatshatru Samal(2011) Effects of CRM on Customer Satisfaction: A study with reference to small and Medium Scale Enterprises Challenges & Opportunities in Service Sector ISBN ) Aaker, D.A. (1991). Managing Brand Equity. New York: Macmillan. Aaker, D.A. (1996). Measuring brand equity across products and markets. California Management Review, 38, ) Atilgan, E., Safak, A., and Serkan, A. (2005). Determinants of the brand equity. A verification approach in the beverage industry in Turkey. Marketing Intelligence & Planning, 23, ) Bamert, T., and Wehrli, H. P. (2005). Service quality as an important dimension of brand equity in Swiss services industries. Managing Service Quality, 15(2), ) Bello, D.C., and Holbrook, M. B. (1995). Does an absence of brand equity generalize across product classes Journal of Business Research, 34, ) Balakrishnan and Krishnaveni (2014), A Study on Customer Relationship Management Practices in Selected Private Sector Banks with Reference to Coimbatore District, The SIJ Transactions on Industrial, Financial & Business Management (IFBM), Vol. 2, No. 1, January-February 2014, pp ) Fozia (2013), A Comparative Study of Customer Perception toward E-banking Services Provided By Selected Private & Public Sector Bank in India,International Journal of Scientific and Research Publications, Volume 3, Issue 9, September ISSN , pp ) M Alamgir and Shamshuddoha (2015), Customer relationship management (CRM) success factors: an exploratory study Ecoforum, Vol. 4, No.1, 2015, pp ) Renuga and Durga (2016), Customer Relationship Management in Banking Sector, International Journal of Engineering Science and Computing, August 2016,Vol.6, No.8, pp ) Saradhy, Subramaniam, Reddy (2014) A study on customer perception towards customer relationship management (CRM) practices in nationalized banks, SciArchives, Vol.5, No.1, pp1-6 Vol: I. Issue LVII, November