TOPIC

A Study on the Consumers Perception towards Combo Offers provided by Banks in Jallandhar Region

Introduction to pricing strategies

Pricing Approaches:Competition pricing Market skimming Market penetration Promotional pricing Price bundling (combo-offers)

BANKS PROVIDING COMBO OFFERS IN INDIA

UCO BANK CORPORATION BANK AXIS BANK SBI ICICI UNION BANK CENTRAL BANK OF INDIA

Review of Literature
Author (year) Rizvi et al, (2011) Findings this paper discusses about the Impact of Sales Promotion on Organizations Profitability and Consumers Perception. The study is aimed at finding the relationship among sales promotion strategies and the profitability of the firms along with the perception about sales promotion of the consumers and its relationship with the brand loyalty of that particular brand or company. in this paper the authors tells about consumer, firm, and policy implications of the fast-food marketing practice of bundling a soft drink and French fries with an entre (i.e., the combo meal) and then offering these three items at a discount. The authors first demonstrate that this practice increases the customers perceived value of the bundled items. this paper states about Bundling, the strategy of marketing products in particular combinations, is growing in significance given the boom in high technology and e-Commerce.

Priya et al, (2010)

Venkatesh et al, (2009)

Author (year) Dhang et al, (2005)

Findings this paper provides an empirical view of the range of promotions launched in the Indian Market place from 1996 to 2003. The different promotions include free gift offers, price Offs, extra product offers, exchange offers, buy-more-and-save offers, contests and Sweepstakes. his paper offers an equilibrium theory of product bundling by rival firms. In several models where a primary good is produced in a duopoly market and one or more other good is produced under perfectly competitive conditions, bundling is shown to emerge as an equilibrium strategy. When the rival firms can commit to bundling sales, their profits are higher, but social welfare is reduced.

Chen, (1997)

Combo offers
UCO Bank do-away with processing charges if customer buys car loan along with home loan. Corporation Bank is Offering on taking both Home and Vehicle loan ,provides 0.25% concession in the rate of interest. CBI has lowered the interest rate on retail loans for home, vehicle and personal loans. SBI provides the loan for purchase of Car and Two Wheeler taken together

Salient Features
No Advance EMI Longest repayment tenure Lowest interest rates Lowest EMI More Loan Options No Down Payment

Objectives
To study customer awareness regarding the combo offers provided by the banks To see the consumers perception towards the combo offers provided by banks.

To find out the factors which influencing customers purchase decision.

Research Methodology
Sample Size : 200 Sample Frame : Jallandhar Sampling Method: Convenience Sampling Survey : Questionnaire Test : Factor analysis

DATA ANALYSIS AND INTERPRETATION

Age group of the respondents (Graph 1)

Graph Interpretation It is clear from the graph that majority of the respondents are within the age group of 20-30 years which is 67%, 22.5% respondents are from 3040 age group, 5.5% are above 40 age group and 4.5% are from less than 20 age group.

Gender of the respondents- (Graph 2)

Graph gender Interpretation Study shows that about 69% respondents are male and 31% respondents are female

Occupation of the respondents(Graph 3)

Graph Interpretation The study shows that 47.5% are students followed by ,22% respondents are private employee and 7.5% respondents are government employee and last 11% respondents are self employed.

Bank accounts of respondents(Graph 4)

Graph Interpretation This graph shows that highest respondents 28.5% have their accounts in the SBI bank, followed by PNB bank with 18.5%, followed by any other banks which includes HDFC,HSBC,BOI etc with 17%

Awareness level of respondents regarding combo offers- (Graph 5)

Graph Interpretation After analyzing the data collected from 200 respondents, it is clear from the graph that 144 i.e 72% of respondents are aware of the combo offers and 27 % respondents are not aware of it.

How did respondents come to know about the combo offers- (Graph 6)
Graph Interpretation
After analyzing the data , it is clear from the graph that 39% of respondents have came to know about combo offers through advertisements including print ad, followed by 15% of respondents have come to know about the employees of the bank.27% data is missing as some respondents are not aware of combo offers.

Satisfaction level of respondents (Graph 7)

Graph Interpretation It is clear from the graph that 66.5% respondents are satisfied with the services provided by their banks and only 6 % respondents are not satisfied with the present services provided by their banks

Relevancy of combo offers for consumers (Graph 8)

Graph Interpretation From the above stated data, it is clear that , 30.5% of respondents neither agree or disagree about the relevancy of offers ,whereas 28.4% agree,20.6% disagree, 14.9% strongly agree and 5.7% strongly disagree regarding the relevancy of offers.

FACTOR ANALYSIS & INTERPRATATION

Reliability Statistics
Cronbachs alpha Interpretation

Cronbach's Alpha .774

N of Items 14

Reliability Statistics value is .774 which shows the reliability of scale used in questionnaire.

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.

Kaiser-Meyer-Olkin
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
.735

Interpretation KMO value of .735 more than 0.5 , indicates the appropriateness of the factor analysis for the data in hand and satisfactory factor analysis can be performed.

Bartlett's Test of Sphericity

Approx. Chi-Square 555.860

Df 91

Sig. .000

Scree Plot
Scree Plot
Interpretation
The scree plot is a graph of the eigen values against all the factors. The graph is useful for determining how many factors to retain. It can be seen that the curve begins to flatten between factors 2 and 3 . Factor 4 has an eigen value of less than 1 so only three factors have been retained

Component Matrix
Component Matrix
Component Matrixa Component 1 discount easiness convenience ext.benefits need promotion service.quality quick.response accessibility .414 .351 .688 .668 .608 .516 .504 .355 .428 2 -.567 -.470 -.452 -.215 .043 .471 .545 .475 .333 3 .244 .557 -.059 -.378 -.482 -.158 .073 .444 .411

Interpretation Table shows the loadings of the nine variables on the three factors extracted.

The higher the absolute value of the loading, the more the factor contributes to the variable

Rotated Component Matrix

Rotated Component Matrix
Component 1 2 .180 -.087 -.061 .124 .018 .020 .119 3

Interpretation
Rotated Component Matrix shows you the factor loadings for each variable 1) Discount , easiness- Factor 1 2) Convenience, extra benefits need for it , promotionFactor 2 3) Service quality, quick response, accessibility Factor3

discount easiness convenience ext.benefits need promotion service.quality quick.response accessibility

.718 .795
.590 .237 -.029 -.195 -.125 .063 .178

.577 .760 .767

.445 .274 -.082 .005

.526 .682 .734 .656

Total Variance Explained

Interpretation
Total Variance Explained

This shows all the factors extractable from the analysis along with their eigen values, the percent of variance, and the cumulative variance of the factor

Extraction Sums of Squared Initial Eigenvalues Loadings

Rotation Sums of Squared Loadings

Comp
onent 1 2 3 Total 2.413 1.650 1.145 .888 .843 .635 .552 .513 .363

% of
Variance 26.813 18.332 12.717 9.863 9.364 7.052 6.129 5.696 4.034

Cumulativ
e% 26.813 45.145 57.862 67.725 77.089 84.141 90.270 95.966 100.000 Total 2.413 1.650 1.145

% of
Variance 26.813 18.332 12.717

Cumulativ
e% 26.813 45.145 57.862 Total 1.820 1.745 1.643

% of
Variance 20.219 19.388 18.255

Cumulativ
e% 20.219 39.607 57.862

4 This shows that first factor accounts for 26.813% of the 5 variance, the second 18.332% and the third 6 12.717%. 7

All the remaining factors are not significant for further study

8 9

Extraction Method: Principal Component Analysis.

VARIANCE MATRIX- 1
Variables Factor % of variance Included in factor Values

F1

20.219

Extra benefit Need

.760 .767

F2

19.388

Promotion

.526

Service quality
Quick response Accessibility F3 18.255 Discount Easiness Convenience

.682
.734 .656 .718 .795 .590

VARIANCE MATRIX- 2
Factor Factor loadings Variance (%) Cumulative variance

F1

Value of Money
20.219 Extra benefit Need .760 .767

20.219

F2

Advertisement & Value Added Services

Promotion Service quality Quick response Accessibility

19.388

39.607

.526 .682 .734 .656 18.255

F3

Sales Promotion & Service Quality

Discount Easiness Convenience

57.862

.718 .795 .590

FINDINGS
The study shows that 47.5% of the respondents are students, followed by 22% respondents are private employee. The study shows that the maximum numbers of respondents have their bank accounts in the SBI followed PNB bank In this study, it is clear from the survey that 73% of the respondents are aware of the combo offers but still 27% of the respondents are unaware of these offers Maximum number of respondents came to know about the combo offers majorly through the advertisements ,print ad and from the employees of the bank only. Majority of the respondents said that they are satisfied with the services provided by their banks.

This study shows that most respondents neither agrees nor disagree with 30% followed by 26% of the respondents who said that these combo offers are relevant to their needs
It was found from the study that need , Service quality ,Quick response, Accessibility are most influencing factors while customer selects combo offers

CONCLUSION
The study showed that only 73% numbers of respondents are aware about the combo offers and maximum respondents were student and private employees comes under the category of 20-30 years. Most of the respondents who are aware about the combo offers in Jalandhar have their bank accounts in public sector banks. Maximum number of respondents came to know about the combo offers through the advertisements ,print ad and from the employees of the bank Still 27% of the respondents are unaware of these combo offers Banks should do advertisements in television as its having high penetration level and also use out of home media in the form of hoardings

It was found from the study that Service quality ,Quick response, Accessibility are most influencing factors while customer selecting combo offers

RECOMMENDATIONS
Attractive offers to fetch the interest of consumers . More attractive ways to generate awareness among consumers.

Banks must focus on more beneficiary schemes for its consumers to maximum output.
Banks should use proper IMC plan Banks should do advertisements in television and also use out of home media in the form of hoardings , bill boards etc to make people aware of combo offers .

Thank you