PLASTIC MONEY AND CUSTOMER SATISFACTION: TWO CASE STUDIES FROM
PAKISTANI BANKING SECTOR
A Dissertation submitted in partial fulfillment of the requirements for the Degree of Master of Business Administration
by
Sanish Kalhoro
Department Of Management Science Faculty of Computer & Management Sciences
Isra University, Hyderabad
April 2010
PLASTIC MONEY AND CUSTOMER SATISFACTION: TWO CASE STUDIES FROM
PAKISTANI BANKING SECTOR
by
Sanish Kalhoro
Examination Committee
Shabina Shaikh(Supervisor) Assistant Professor of Management Science
Prof.Dr. Arshad Haroon(Co-Supervisor)
Professor of Management Science
Qamaruddin Mahar (Co-Supervisor) Assistant Professor of Management Science
ACKNOWLEDGEMENTS
First of all, I reverently thank Almighty Allah who made me skillful
enough so that I can make some contributions to the huge understanding of
the world and who also awarded me the capability to complete the MBA
dissertation fruitfully which otherwise would have been unfeasible for me to
complete.
I am tremendously thankful to my supervisor Assistant Professor Ms.
Shabina Shaikh, Department of Management Sciences, Isra University
Hyderabad for her faithful attention, continuous suggestions, and
encouragement in compiling my research work. Her creativity and logical
judgment helped a lot during the whole writing of this dissertation.
I would like to convey the extraordinary and great thankfulness to
Assistant Professor Dr. Arshad, Department of Management Sciences, Isra
University, for his wholehearted effort and concern. With his precious advice,
help and encouragement, I was able to comply with this dissertation.
I would like to expand my gratitude to Assistant Professor Mr. Qamar-
udin-Mahar for his great support during the dissertation work.
I am grateful to Professor Dr. Gulham Hussain Siddiqui Director
Research, Extension and Advisory Services, as well as Professor Iqbal Bhatti
Dean Faculty of Computer and Management Sciences ,Isra University for
providing me their supervision and support ,and helping me in carrying out
the dissertation on time.
ABSTRACT This research is about customer satisfaction and awareness of plastic
money. Plastic money is another name of credit cards and debit cards. The
research is focused on credit card. Increasing usage of plastic money day by
day has given confusion in customers about choosing the most suitable bank
for using plastic money. Plastic Money business is definitely going big time
here in Pakistan. In a country where 10 years back people have hardly heard
the word plastic money or credit card, more than 7000 merchants are
accepting above 140,000 cards. Pakistan’s banking infrastructure consists of
two major sectors, offering plastic money one is domestic and another one is
foreign. Customers of two banks, domestic bank that is UBL and foreign bank
that is Bank Alfalah, are selected to find satisfaction level regarding plastic
money which they use. The research is to explore the transparency of plastic
money handled by banks, finding customer awareness, and customer
satisfaction in both concern banks. Research data is gathered through
primary and secondary sources. Questionnaire is used to get the view of
customers regarding awareness and satisfaction. Result shows the customer
satisfaction and awareness of plastic money of Alfalah (Foreign Bank) is
higher than UBL (Domestic Bank).
ABBREVIATIONS Abbreviations Term
ATM-------------------------------------------------------------Automated Teller Machine
BAL---------------------------------------------------------------------Bank Alfalah Limited
SBP------------------------------------------------------------------State Bank of Pakistan
UBL----------------------------------------------------------------------United Bank Limited
TABLE OF CONTENTS
Page
ACKNOWLEDGEMENTS -----------------------------------------------------ABSTRACT -----------------------------------------------------------------------ABBREVIATIONS--------------------------------------------------------------- TABLE OF CONTENTS ------------------------------------------------------- LIST OF TABLES --------------------------------------------------------------- LIST OF FIGURES -------------------------------------------------------------
iii iv v vi ix x
CHAPTER I – INTRODUCTION --------------------------------------------- 01 1. General -------------------------------------------------------------------------2. Research Problems --------------------------------------------------------- 3. Research Questions -------------------------------------------------------- 4. Research Purposes --------------------------------------------------------- 5. Research Objectives --------------------------------------------------------6. Hypotheses --------------------------------------------------------------------7. Scope of Research ---------------------------------------------------------- 8. Research Design and Methodology ------------------------------------
01 01 01 02 02 02 02 03
CHAPTER II – LITERATURE REVIEW ---------------------------------- 04 1. Plastic Money and its types ----------------------------------------------- 1.1 Origin of Credit card--------------------------------------------------- 1.2 Plastic Money in Pakistan ------------------------------------------- 1.3 Market Scenario------------------------------------------------------- 2. Importance of Customer Satisfaction ----------------------------------- 3. Types of Plastic Money Offered by UBL and BAL ------------------ 3.1 Types of Plastic Money Offered by BAL-------------------------- 3.1.1 Platinum card---------------------------------------------------- 3.1.2 Titanium card---------------------------------------------------- 3.1.3 Professional card------------------------------------------------ 3.1.4 Supplementary Card------------------------------------------- 3.2 Fringe and Benefits of plastic money offered by Bank
Alfalah Limited--------------------------------------------------------------- 3.2.1 No Joining Fee Step By Step Plan------------------------- 3.2.2 Balance Transfer Facility-------------------------------------- 3.2.3 Global Acceptability-------------------------------------------- 3.2.4 Cash Advance Facility 50% Of Credit Limit-------------- 3.2.5 Revolving Credit------------------------------------------------- 3.2.6 Supplementary Cards------------------------------------------ 3.2.7 Card Expiry period---------------------------------------------- 3.2.8 24-Hours Phone Banking Service-------------------------- 3.2.9 Zero Loss Liability----------------------------------------------- 3.2.10 All Billing in Pak Rupees------------------------------------- 3.2.11 Comprehensive Travel Protection------------------------- 3.2.12 Credit Limit indicating----------------------------------------- 3.2.13 Payment Due Date-------------------------------------------- 3.2.14 Current Balance-----------------------------------------------
04 05 06 06 10 12 12 12 12 13 13 13 15 15 16 16 16 16 17 17 17 18 18 18 18 19
3.2.15 Fortunes-------------------------------------------------------- 3.2.16 Acceptance at 1LINK ATMs-------------------------------- 3.2.17 Instant SBS Monthly Installment Plan-------------------- 3.2.18 Utility Bill Payments------------------------------------------ 3.2.19 Call and Pay Facility------------------------------------------ 3.2.20 Prepaid Mobiles Top ups------------------------------------ 3.2.21 Alfalah Credit on Phone------------------------------------- 3.3 Types of Plastic Money offered by United Bank Limited------ 3.3.1 Chip Credit Card------------------------------------------------ 3.3.2 Galleria-Picture Card------------------------------------------- 3.3.3 Auto Credit Card------------------------------------------------- 3.4 Features and Benefits of Plastic Money offered by United
Bank Limited----------------------------------------------------------------- 3.4.1 Low Balance Transfer Rate---------------------------------- 3.4.2 24-Hour Customer Service----------------------------------- 3.4.3 Cash Advance--------------------------------------------------- 3.4.4 4 free supplementary Cards---------------------------------- 3.4.5 Free Road miles or Classic Reward points--------------- 3.4.6 Buy Today ,Pay Later ----------------------------------------- 3.4.7 Credit Guardian------------------------------------------------- 3.4.8 Free Travel Accident Insurance----------------------------- 3.4.9 Zero Loss Liability----------------------------------------------- 3.4.10 Free CIP Lounge Access----------------------------------- 3.4.11 Cash at Counter-----------------------------------------------
19 19 19 20 20 20 20 21 21 22 23 24 25 25 25 26 26 26 27 27 27 28 28
CHAPTER III – RESEARCH DESIGN AND METHODOLOGY ------ 29 1. Introduction --------------------------------------------------------------------2. Research Design ------------------------------------------------------------ 3. Data Collection Methods and Techniques ---------------------------- 3.1 Questionnaire instrument --------------------------------------------- 3.2 Internet Sources -------------------------------------------------------- 3.3 Interviews------------------------------------------------------------------4. Sample Size -------------------------------------------------------------------5. Measures ----------------------------------------------------------------------
29 29 32 32 34 35 35 35
CHAPTER IV – DATA ANALYSIS AND RESULTS -------------------- 36
1. Introduction --------------------------------------------------------------------2. Findings about Objectives ------------------------------------------------- 2.1 Findings about Credit Card Awareness --------------------------- 2.1.1 Findings about Credit card Awareness of bank Alfalah
limited --------------------------------------------------------------------- 2.1.2 Findings about Credit card Awareness of United bank
limited --------------------------------------------------------------------- 2.2 Findings about comparison of result of Awareness level ----- 2.3 Finding the Customer Satisfaction level in concerning banks 2.3.1 Findings about Customer Satisfaction level of BAL----- 2.3.2 Findings about Customer Satisfaction level of UBL----- 2.4 Findings comparison of result of customer satisfaction level-3. Hypotheses Testing --------------------------------------------------------- 3.1 Hypothesis 1 ------------------------------------------------------------ 3.2 Hypothesis 2 ------------------------------------------------------------ CHAPTER V – CONCLUSIONS AND DISCUSSION------------------ 1. Conclusions-------------------------------------------------------------------- 1.1 Conclusion about findings--------------------------------------------- 1.2 Conclusion about Hypotheses--------------------------------------- 1.2.1 Hypothesis 1----------------------------------------------------- 1.2.2 Hypothesis 2------------------------------------------------------2. Discussion--------------------------------------------------------------------- CHAPTER VI – RECOMMENDATIONS----------------------------------- 1. Recommendations for further Research--------------------------------2. Recommendations for concern banks---------------------------------- REFERENCES------------------------------------------------------------------- APPENDEX-----------------------------------------------------------------------
36 37 37 37 48 59 61 61 74 88 90 90 93 97 97 97 98 98 99 99 100 100 100 103 104
LIST OF TABLES
Table Page
III – 1 Measures Related Awareness------------------------------------------ 33
III – 2 Measures Related to Customer Satisfaction------------------------ 34
IV – 1 Measures related to Credit card awareness along with mean values of BAL--------------------------------------------------------------
47
IV – 2 Measures related to Credit card awareness along with mean values of UBL--------------------------------------------------------------
58
IV– 3 Measures related to Customer satisfaction along with mean values of BAL--------------------------------------------------------------
73
IV – 4 Measures related to Customer satisfaction along with mean values of UBL--------------------------------------------------------------
87
IV – 5 Descriptive statistics of hypothesis 1--------------------------------- 91
IV – 6 T-Test of hypothesis 1---------------------------------------------------- 92
IV – 7 Descriptive statistics of hypothesis 2--------------------------------- 94
IV –8 T-Test of hypothesis 2---------------------------------------------------- 95
LIST OF FIGURES
Figure Page III – 1 Research Design------------------------------------------------------- 31 IV – 1 Variables used for Case Studies----------------------------------- 36 IV – 2 Responses related to Supplementary cards ------------------- 37 IV – 3 Responses related to Zero loss liability-------------------------- 38 IV – 4 Responses related to Credit guardian---------------------------- 39 IV – 5 Responses related to CIP lounge--------------------------------- 40 IV – 6 Responses related to Balance transfer-------------------------- 41 IV – 7 Responses related to Expiry date -------------------------------- 42 IV – 8 Responses related to Travel insurance-------------------------- 43 IV – 9 Responses related to Deduction charges----------------------- 44 IV – 10 Responses related to Cash advance facility------------------- 45 IV – 11 Responses related to Cancellation of card--------------------- 46 IV – 12 Responses related to Supplementary cards------------------- 48 IV – 13 Responses related to Zero loss liability------------------------- 49 IV – 14 Responses related to Credit guardian--------------------------- 50 IV – 15 Responses related to CIP lounge--------------------------------- 51 IV – 16 Responses related to Balance transfer-------------------------- 52 IV – 17 Responses related to Expiry date-------------------------------- 53 IV – 18 Responses related to Travel insurance------------------------- 54 IV – 19 Responses related to Deduction charges---------------------- 55 IV – 20 Responses related to Cash advance facility------------------- 56 IV – 21 Responses related to Cancellation of card--------------------- 57 IV – 22 comparison of result of awareness level------------------------ 59 IV – 23 Responses related to 24-hour banking service--------------- 61 IV– 24 Responses related to Step by step installment payment--- 62 IV – 25 Responses related to Paying of outstanding balance------- 63 IV – 26 Responses related to Drop box----------------------------------- 64 IV – 27 Responses related to Credit card limit--------------------------- 65
IV – 28 Responses related to Reward programs------------------------ 66 IV – 29 Responses related to Service charges-------------------------- 67 IV – 30 Responses related to Monthly transactions-------------------- 68 IV – 31 Responses related to Guide lines-------------------------------- 69 IV – 32 Responses related to Issuance of card------------------------- 70 IV – 33 Responses related to Interest rate------------------------------- 71 IV – 34 Responses related to Like to become customer of another
bank---------------------------------------------------------------------- 72
IV – 35 Responses related to 24-hour banking service--------------- 75 IV – 36 Responses related to Step by step installment payment--- 76 IV – 37 Responses related to Paying of outstanding balance------- 77 IV – 38 Responses related to Drop box----------------------------------- 78 IV – 39 Responses related to Credit card limit--------------------------- 79 IV – 40 Responses related to Reward programs------------------------ 80 IV – 41 Responses related to Service charges-------------------------- 81 IV – 42 Responses related to Monthly transactions-------------------- 82 IV – 43 Responses related to Guide lines-------------------------------- 83 IV – 44 Responses related to Issuance of card------------------------- 84 IV – 45 Responses related to Interest rate------------------------------- 85 IV – 46 Responses related to Like to become customer of another
bank---------------------------------------------------------------------- 86
IV – 47 Comparison of Customer Satisfaction--------------------------- 88
CHAPTER I
INTRODUCTION
1. General
Plastic money is the alternative to the cash or the standard 'money'.
Plastic money is used to refer to the credit cards or the debit cards that we
use to make purchases in our everyday life. Plastic money is much more
convenient to carry around as you do not have to carry a huge some of
money with you. It is also much safer to carry it along or to travel with it as if it
is stolen you can consult the bank whose service you are using and get it
blocked hence saving your money from getting stolen or even lost. Generic
term for all types of bank cards, credit cards, debit cards, smart cards, etc.
2. Research Problem
Increasing usage of plastic money day by day has resulted the
confusion in customers about choosing the most suitable bank for using
plastic money.
3. Research Questions
Research question of my study are:
• Which bank is more stronger in offering plastic money?
• Which bank’s customers are more satisfied?
4. Research purpose Purposes behind the research are:
1. To discover the transparency of plastic money handled by both
banks.
2. To find out their weak points.
3. To over come the flaws, customer awareness.
5. Research Objective
1. To get the awareness level of plastic money of both comprising banks.
2. To discover the comparison of result of awareness level.
3. To acquire the customer satisfaction level in concerning banks.
4. To obtain the comparison of result of customer satisfaction level.
6. Hypotheses
• Customers of BAL have high awareness of using credit card than
customers of UBL.
• Customer satisfaction level is same in customers of BAL and UBL.
7. Scope of Research
• Scope of research is limited in the boundaries of Hyderabad and two
banks are taken one is domestic that is United Bank Limited (UBL)
and another one is foreign bank which is Bank Alfalah Limited.
• Data is collected on randomly basis from customers of both banks.
8. Research Design and Methodology
There are diverse data collection sources however; Research is designed on
the basis of the primary sources of data (structured questionnaires, likert
scale and interviews) and secondary sources of data such as:
Articles
Internet
Books
Newspapers
Bank’s annual reports
CHAPTER II LITERATURE REVIEW
1. Plastic money and its types
Plastic money is the generic term for all types of bank cards, credit
cards, debit cards, smart cards, etc. They are the alternative to the cash or
the standard 'money'. The usage of plastic money(Cards) has increased in
the mode of payment of huge amount and time by time there are lots of
different types of plastic money has introduced which enhanced the features
of plastic money like we can use it to anywhere in the world and etc. Now the
world is becoming globalize so every card is accepted everywhere with the
power of VISA which interconnect the different countries. As we have the
different type of card as listed below:
1. Credit Card
2. Debit Card
3. Charge Card
4. Amex Card
5. MasterCard & Visa
6. Smart Card
7. Dinners Club Card
8. Photo Card
9. Global Card
10. Co-branded Card
11. Affinity Card
12. Add-on Card.
These cards are performing the function of money with different ways.
These cards are accepted worldwide, in which you can utilize your own
money and also bank’s money. The card through which you spend your own
money is known as debit card. The card through which you spend the
amount of bank as loan is called credit card.
Why has plastic money? “Charge it!” has become like a fashion
statement and it is commonly heard in various service establishments like
malls, multiplexes and hyper markets. People buying food or shopping for
clothes using their credit cards has now become a trend. A credit card is
supposed to be used for necessities and not as a luxury.
1.1 Origin of credit card
The origin of the credit card can be traced back to 1914, when
American company Western Union began issuing metal plates to customers
who would buy on credit. The transactions would be recorded on these
plates. However, the credit card as we know it took other 40-odd years to
evolve. In 1950 the Diners Chub in New York pioneered a charge card for
meals, heralding the arrival of "plastic money," a credit account that the user
paid off, with interest, at the end of each month. Eight years later American
Express Company developed a card used for goods and services at member
establishments across the country, again with the provision that the borrower
pay the total balance monthly.
The Bank of America pioneered the first true domestic "revolving" credit
card used nationally when it introduced the Bank America card in 1959.
1.2 Plastic Money In Pakistan
Plastic Money business is definitely going big time here in
Pakistan. In a country where 10 years back people have hardly heard the
word plastic money or credit card, more than 7000 merchants are accepting
above 140,000 cards.
It has been estimated that there are likely to be around half
million potential card users in the near future. This forecasting derive
credibility from the fact that more and more local and international financial
institutions are exhibiting enthusiasm in this direction. This in turn reflects
prospects in Pakistan market in accommodating numerous credit card
competitors operating on the circuit, ensuring healthy and competitive card
business deals.
1.3 Market Scenario
Although credit card was introduced in Pakistan decades ago
when Habib Bank, the largest bank in Pakistan, launched its gold card, but
people had hardly know about this card because of its very limited issuance.
Allied Bank of Pakistan had launched its Master Card. Than after two years
Citibank had launched its VISA Card and that was the turning point in the
history of Plastic Money in Pakistan.
Citibank had done a tremendous job to educate people of
Pakistan, as well as, financial industry about credit cards and its significance
in today's world. Because of very aggressive marketing and heavy
investment in technology, Citibank is well deserve to be called the industry
leader of Pakistan's credit card business.
After successful launch of Citibank card, Muslim Commercial
Bank, Bank of America, and National Bank of Pakistan had launched their
credit cards.
The expansion of market occurred once after deregulation
regime introduction in financial sector. There on, numerous banks set on
enlisting credit card on top of financial solutions. Barring Islamic banks, now
almost every commercial banks in Pakistan offer credit card. Credit card in all
over the world is recognized for its giving immediate monetary solution to its
holder. In developed countries, people like to have associations with banks to
meet their pecuniary needs through consumer loans because they are sure
of prowess of financial laws. In Pakistan, the situation is quite reversed firstly
since per capita income of the country fellows suffices barely to fulfill basic
needs, leaving no vacuum for saving to waste on principal plus high interest
against loans. Secondly, illiteracy rate in the country is drastically low, and
since bank-consumer relationship, based on complicated legal epithets,
requires education and literate consumers, parity in it is difficult to maintain.
Basically, two different kinds of people suffer into banking
disputes associated with the consumer loans; people with out awareness,
and people with having intention to exploit consumer loans, Recently, credit
card conflicts appeared in public, some times representing kindred sprits of
later set of people those who even without befitting source of monthly income
indulged in out of pockets credits.
Besides, prudential regulation of State Bank bound all banks (foreign
or local) to have separate consumer complaint center and redress consumer
grievances with 45 days of conversance. After the deregulation of banking
and financial system in Pakistan, numbers of banking consumers is rising
day by day, and so do the counts in complaints. As consumer financing is
expanding more rapidly than any other financial services, it has become
more prone to fall to financial aberration owing to being passed through,
perhaps, an evolutionary stage.
Basically, the use of a credit card involves three parties, as
under:
i) The card holder. ii) The retailer or the supplier of goods or services. iii)
The credit card company.
The Cardholder:
The main benefit to a cardholder is less need to carry cash
when shopping. This ensures increased security much desired in the law and
order situation obtaining in Pakistan.
Benefits may be:
(i) Saving on excise duty as a large number of scattered purchases
(ii) Availability of free credit for 25 to 28 days
(iii) Rolling credit facility if the cardholder chooses to pay in installments
(iv) Cash can be obtained on holidays and during off hours without the
need to carry a cheque book.
But, the question is, and it is indeed a crucial question, that how
many Pakistanis are capable to avail of these facilities by making use of
credit cards. A reply to this question alone shall determine whether or not we
are adequately equipped to switch over to such sophisticated techniques of
transfer of funds
Use of credit card, on the one hand, creates indebtedness on
account of the cardholders, which may not be commensurate with their
repaying capacity. On the other hand, in the form of additional credit utilized
by the cardholders, it adds to the "money supply" in the country's money
market, and raises the inflation level proportionately. However, it also tends
to increase the demand for goods and services which, in turn, should
increase production and reduce unemployment.
The Supplier or Retailer:
The benefits to the suppliers of goods and services may be as
follows:
i) Greater sales, as customers are attracted towards the establishments
accepting their credit cards.
ii) Less cash handling, and therefore increased security.
iii) Credit vouchers which a retailer pays into his account are treated as
cash; thus increased liquidity. It also cuts on the time usually taken in
collecting of cheques.
The only disadvantage to a retailer is that he is required to pay
to the credit card company a percentage of his sale income from card
transactions.
The Credit Card Companies:
According to a conservative estimate, more than 50% of the
cardholders tend to pay their bills in full within the prescribed time limit to
avail of the free card facility.
The customers who do not withhold payment beyond the specified
date are called "free riders" in card business.
2. Importance of customer satisfaction
There are number of credit cards varieties that are offered by the
companies. The main thing is the selection of the best credit card that suits
you well. One-size cards are not suitable for all. There is a good type of cards
for the selection that are offered by the companies. Some are provided for
the special groups and others credit cards are provided for those who want
not only the standard card but also more.
Standard cards are issued simply for your use. These cards will not
provide you any great deal but you can easily transfer your balances to this
card. Standard card is the very common sort of plastic currency in your
pockets, these cards provide you with that interest rate which is far beyond
your imagination and it is so because it does not provided you any kind of
special option or features. What all you need is just some amount of credit on
your name, and than this card is ready for you
There are many types of credit cards available in the market but one
among those is a specialty credit card. The term itself shows the distinction of
this card, the word “specialty” indicates to the particular group of customers.
Under this type you can also get cards such as, student credit cards that are
meant particularly for students. The student credit cards are good for
students as they have less interest rate as well as there is no need to pay
immediately. This facility given by this card is very attractive for the students.
Another kind of credit card is the card, which is used for business
purposes and is very useful for a businessman is business credit card. These
cards are issued to the employees through their trade, and business cards
have long credit limits as well as these cards have additional perks, which
come all along with the card. These cards are ideal selection done by the
people who are in to business. Business plastic normally has various
features.
Credit cards are an extremely useful way of paying for products and
services. They are often more convenient than cash or checks, and they are
almost universally accepted (including over the phone). Additionally, they are
a great way for you to establish your creditworthiness. And some cards offer
additional benefits But credit cards are a mixed blessing. They can
encourage excessive spending.
3. Types of plastic money offered by Bank Alfalah
Limited and United Bank Limited.
3.1. Types of plastic money offered by Bank Alfalah
Limited
Bank Alfalah Limited is a private bank in Pakistan owned by the Abu
Dhabi Group. Bank Alfalah was incorporated on June 21, 1992 as a public
limited company under the Companies Ordinance 1984. Its banking
operations commenced from November 1, 1992. Launched in Hyderabad city
in March, 2003.
3.1.1 Platinum Card
It is accepted at nearly 29 million locations in more than 150
countries around the globe and at over 27,000 establishments in Pakistan.
3.1.2 Titanium card
Titanium MasterCard is your partner everywhere and is globally
accepted and welcomed at locations displaying the MasterCard logo.
3.1.3 Professional card
A perfect card combination for all segments of salaried &
professional individuals.
3.1.4 Supplementary Cards
All Bank Alfalah basic credit card members can apply for
supplementary cards for their sons, daughters (Children who are above 13
years of age), house staff or anyone you like thus giving you complete
freedom of choice.
3.2. Fringe and Benefits of plastic money offered by Bank
Alfalah Limited:
No Joining Fee
No Annual/Renewal Fee
Balance Transfer Facility
Global Acceptability
Cash Advance Facility
Revolving Credit
Supplementary Cards
Card Expiry Period
24-Hours Phone Banking Service
Zero Loss Liability
All Billing in Pak Rupees
Comprehensive Travel Protection
Statement of Account
Fortunes
Acceptance at 1Link ATMs
Instant SBS Monthly Installment Plan
Utility bill Payments
Call and Pay Facility
Prepaid Mobiles Top ups
Alfalah Credit on Phone
Credit Card bill Payment through Hilal Card
Special Offer on Warid post paid connection
Step By Step Plan
Non Alfalah Card members
3.2.1 No Joining Fee Step By Step Plan
Join Alfalah VISA without paying any joining fee. Start enjoying your
free card from the moment you get hold of it.
3.2.2 Balance Transfer Facility
Bank Alfalah offers balance transfer facility to all its Cardmembers -
the easy and convenient way to settle unsettled credit card payments on all
existing credit cards in Pakistan. As an Alfalah VISA Cardmember you can
avail balance transfer facility at a low rate of only 2% (24% APR) per month
(for initial six months), which is the lowest in Pakistan. The balance transfer
facility can only be availed if the total outstanding balance does not exceed
beyond the credit limit assigned by Bank Alfalah for Alfalah VISA card.
Avail balance transfer facility by filling out our Balance Transfer Facility
Form. Print the form, fill out all the fields, sign it and send it to us through
courier.
OR
Drop it in at any of Bank Alfalah drop boxes available in all Bank
Alfalah Branches.
3.2.3 Global Acceptability
Your Bank Alfalah VISA card is your partner everywhere and is
globally accepted and welcomed at locations displaying the VISA logo. It is
accepted at nearly 29 million locations in more than 150 countries around the
globe and at over 27,000 establishments in Pakistan.
3.2.4 Cash Advance Facility 50% Of Credit Limit
Now you can avail Cash Advance Facility up to 50% of your available
credit limit. Enjoy the benefits of this exclusive offer on your Bank Alfalah
Credit Cards. You can get cash from Alfalah ATMs or cash counters of Bank
Alfalah branches and other VISA member banks in Pakistan.
3.2.5 Revolving Credit
With Alfalah VISA you have the option of paying only 5% of your
outstanding balance by the payment due date. Service charges will be levied
on the balance unpaid spending and carried forward. These charges are
calculated on a daily basis from the transaction date for all cash and retail
transactions. The following month you have the option of either the full
amount payment or if you wish, pay only the minimum amount due and
revolve again.
3.2.6 Supplementary Cards
Gift your family members with exclusive Alfalah VISA supplementary
cards and let them also enjoy the privileges of Alfalah VISA. Only Alfalah
VISA gives you the unique feature of having up to six free supplementary
cards for anyone you care for. All supplementary Cardmembers share your
credit limit. All charges incurred on the supplementary cards will be reported
on your monthly statement.
3.2.7 Card Expiry Period
Effective 7 June 2005, all VISA credit cards being issued by our Card
Division will have an expiry of 3 years on them.
3.2.8 24-Hours Phone Banking Service
Our well-trained and qualified phone banking team Is available to help
you 24 hours a day. Just dial 111-225-111 for:
Activating your card
Answering your queries
Registering and resolving your complaints
Reporting a lost/stolen card
3.2.9 Zero Loss Liability
If you ever lose your card, Bank Alfalah ensures that you never have
to worry about it. You are covered for all fraudulent charges made on your
card as soon as it has been reported lost to us. Just make sure that you
report the lost card immediately upon discovery. You are completely secure
against loss/theft after the card loss has been reported to us.
3.2.10 All Billing in Pak Rupees
Whether you make transactions in Dollars or any other currency, for
your convenience, all your billing will be in PAK Rupees.
3.2.11 Comprehensive Travel Protection
Alfalah VISA offers a comprehensive cover up to Rs. 3.5 Million on
Alfalah VISA Gold Card in case of an accident, while traveling on any
common carrier. It is applicable only if the tickets are charged through Alfalah
VISA card.
3.2.12 Credit Limit indicating:
The total credit limit assigned to you for all your card accounts
(principal and supplementary).
3.2.13 Payment Due Date
Indicating the date by which your payment should reach Bank Alfalah
to avoid any late payment charges.
3.2.14 Current Balance
Indicating the total outstanding amount on your card account on the
statement date.
Payment coupon: To be used for making payments.
3.2.15 Fortunes
For every Rs. 50 you spend on your Alfalah VISA card, you will earn
one fortune point. Your accumulated fortune points can be exchanged for a
whole range of items displayed in our Fortunes Catalogue.. It offers a wide
range of lifestyle categories always catering to you and your family's taste.
Once you have accumulated enough points to redeem the gift of your
choice, fill out a simple form available at all Bank Alfalah branches or call our
24 hour phone banking service and order the item of your choice. The fortune
items will be delivered at your doorstep.
3.2.16 Acceptance at 1LINK ATMs
Avail Cash Advance upto 50% of your credit limit at over 2200 1Link
ATMs in Pakistan in addition to over 1.2 million ATMs worldwide.
3.2.17 Instant SBS Monthly Installment Plan
Bank Alfalah cardholders can convert any transaction of Rs. 3,000 or
above into easy installments of 3,6,12,18,24,30 and 36 months’ tenures at
the time of transaction.
3.2.18 Utility bill Payments
Now Utility bill payments* can be made through Alfalah VISA credit
cards either by calling Call Centre or through Direct Debit instructions.
*Available on FESCO, LESCO, SSGC, SNGPL ,IESCO, HESCO, GEPCO,
KESCO, PTCL & WARID. Other companies will be added soon.
3.2.19 Call and Pay Facility
Cardholders now have the convenience of using their cards to make
payments even on locations where credit cards are not accepted by calling
our 24 hours Call Center and getting pay orders issued to any third party
through debit to Alfalah Visa Credit Card.
3.2.20 Prepaid Mobiles Top ups
Alfalah cardholders are also being provided the facility to get their prepaid
mobile connections of any company topped up by just one call to 24 hours
Call Center. Alfalah credit cardholders can also use their reward points to get
the prepaid mobile top ups.
3.2.21 Alfalah Credit on Phone
Alfalah cardholders can call the Call Center and get credit upto 75% of
their available credit limit assigned by Bank Alfalah or available credit limit
whichever is lower at just 2.0% per month (24% APR). Payment of credit
amount can be made to them through a cheque at the doorstep or directly
into the account in Bank Alfalah.
3.3 Types of Plastic Money offered by United Bank Limited
UBL is domestic bank of Pakistan has assets of over Rs. 550 billion and
a solid track record of fifty years - in addition to the convenience of over 1112
branches serving you throughout the country and also at several overseas
locations. Established in November 7, 1959.
3.3.1 Chip Credit Card
Pakistan’s 1st Chip Credit Card that guarantees you both enjoyment and
high value. It assures you global acceptability in more than 22 million
establishments worldwide in 130 countries and in more than 12, 000 outlets
within Pakistan.
CHIP based credit cards have globally proven to be the most secure way of
conducting credit card transactions. This unique high tech CHIP guarantees
your financial security while conducting transactions on credit cards, both
within Pakistan and around the world.
3.3.2 Galleria - Picture Card
Design your Credit Card your way!Your choices say a lot about your
personality. Shouldn't your Credit Card!.
Being different was never so easy! Now UBL Credit Card gives you the
flexibility to make a statement by letting you design your credit card in almost
any manner you want. Galleria, by UBL Cards is Pakistan’s first picture credit
card that gives you freedom of choice and expression as you can now
customize it with your favorite image and make your credit card as unique as
you are.
Express your individuality. Add a personal touch. Keep a loved one close
to your heart. Or simply make a statement.
Personalize your card with a picture of your choice on it. Choose
whatever you think defines you or represents your personality, your passions,
your style or your likes. Perhaps you could put up pictures of yourself, your
loved ones or anything you please. It’s entirely up to you. For the first time
ever in Pakistan, a card that lets you express your true self.
3.3.3 Auto Credit Card
Pakistan’s First Auto Credit Card!!
The UBL Credit Cards team now brings Pakistan’s 1st Auto Credit Card -
UBL PSO Auto Credit Card. Keeping in mind the success story of our
standard UBL Card, with annual fee wavier and free liters of fuel as reward
against spend, we are introducing a complete auto card solution with PSO
with high value incentives and discounts on fuel and other automobile related
products.This card is clearly aimed at offering a value-for-money proposition,
with a touch of both incentive and functional appeal as well as a clear
objective of making UBL PSO Auto Credit Card, a truly preferred card in the
market. Positioned as Pakistan’s First Auto Credit Card, it will offer 5% Free
Fuel on PSO stations* and 1% on non PSO outlets. Card members can also
avail various exciting discounts and benefits given below
Free Accidental Insurance.
Discount on Avis Rent-a-Car services.
Discount on PSO lubricants (DEO and Carient).
Discount on tracking devices from C-Track.
Special offers at authorized 3S dealers of Honda, Suzuki and Toyota.
Discounted rates on car insurance from TDI.
Discount on installation of CNG Kit.
Discounted Rent-A-Car traveling.
Discounted car accessories.
Discounts on tyres and stereo systems
3.4. Features and Benefits of Plastic Money offered by United
Bank Limited
Low Balance Transfer Rate
24 Hour Customer Service
Cash Advance
4 Free Supplementary Cards
Free Roadmiles or Classic Reward points
Buy Today, Pay Later
Credit Guardian
Free Travel Accident Insurance
Zero Loss Liability
Free CIP Lounge Access
Cash at Counter
3.4.1 Low Balance Transfer Rate
Now you can really save big time with your UBL Credit Card Balance
Transfer Facility! You have the opportunity to pay off balances you owe to
other banks through your UBL Credit Card on a low balance transfer rate.
3.4.2 24 Hour Customer Service
By simply calling our 24 hour ‘UBL Contact Center’ at 111-825-888 or
logging onto our website www.ubl.com.pk, you can avail the following
facilities on your UBL Credit Card, 24 hours a day, 7 days a week.
3.4.3 Cash Advance
You can now withdraw cash through your UBL Credit Card’s instant cash
advance facility from any designated UBL Card Payment Branches
nationwide and more than 780,000 ATMs and financial institutions worldwide
displaying VISA/PLUS logo.
The service charges for cash advance will be applied from the day of the
transaction. A cash advance fee will also apply for each cash withdrawal.
3.4.4 4 Free Supplementary Cards
To share the value, excitement and benefits of your UBL Credit Card with
your loved ones, your UBL Credit Card offers you up to 4 free supplementary
cards.
3.4.5 Free Roadmiles or Classic Reward points
The more spending there is on your supplementary cards, the more Free
Roadmiles or Classic Reward points are earned on your account. Also, the
supplementary card holder benefits by earning instant and exciting UBL Chip
Rewards on his/her own card.
3.4.6 Buy Today, Pay Later
Your UBL Credit Card gives you the financial flexibility to buy today and
pay after a month at no extra charge. You have the option of paying a
minimum 5% of the outstanding balance or any other amount of your choice
up to your total account balance.
A service charge of only 3.25% per month will apply to whatever
remaining unpaid balance that is carried forward.
3.4.7 Credit Guardian
UBL takes care of its Credit Cardmembers payments in time when they
cannot. Our Cardmembers can now get total peace of mind and insure
themselves against unforeseen emergencies. In the event of any temporary
disability where UBL Cardmember is unable to pay his/her monthly dues,
Credit Guardian will allow payment of the outstanding monthly amount.
Moreover, in the unfortunate event of permanent disability or death, the entire
outstanding amount will be waived off. Credit Guardian Facility is available
for a minimal fee, charged automatically on the card balance every month.
3.4.8 Free Travel Accident Insurance
Each time our Cardmembers use their UBL Credit Card to purchase
airline, train or bus tickets, they are automatically covered against any sort of
accident that might befall them while traveling:
3.4.9 Zero Loss Liability
Isn’t it comforting to know that if you lose your card, you have nothing to
worry about! You are covered for all fraudulent charges made on your card
as soon as it has been reported lost to us.
3.4.10 Free CIP Lounge Access
Take advantage of the special CIP Lounge at Karachi International
Airport with free secretarial services, free buffet, internet connection, reading
material and 24 - Hour porter facilities.
3.4.11 Cash at Counter
You can make cash payment at all designated UBL Card Payment
Branches nationwide during banking hours (see designated Card Payment
branches list at the back of the Card Payment envelope).
CHAPTER III RESEARCH DESIGN AND METHODOLOGY
1. Introduction
Research is a diligent and systematic inquiry or investigation into a
subject in order to discover or revise facts, theories, applications, etc.
Methodology is the system of methods followed by particular discipline.
This chapter presents and justifies the suitable research design and
methodology to answer the research questions. It begins with research
design, discusses on data collection methods and techniques and provides
sample size and measures.
2. Research Design
Research design is the blueprint for achieving objectives and
answering questions. Choosing a design can be complicated because there
are many varieties of methods, techniques, procedures, protocols, and
sampling plans available.
Choosing the suitable case study design is a critical matter on the
quality of research findings and it is often influenced by the nature of the
research (Yin 1994; 2003). Four types of case study designs were proposed
by Yin (1994; 2003): (a) single case (holistic), (b) single case (embedded), (c)
multiple cases (holistic) and (d) multiple cases (embedded).
The single case study design is appropriate when: (1) the case
provides an essential test for established theory, (2) embodies an exceptional
or a unique event, (3) is a distinguishing or typical case, or (4) provides a
longitudinal or revelatory aim (Yin 1994; 2003).
On the other hand, using multiple cases design is used where each
case study is regarded as single experiment or investigation (Yin 1994;
2003). Therefore, there is no doubt that the multiple case study design is the
most appropriate design for the current research because it is not aiming to
test theory or to understand a unique and typical phenomenon as in the
single case design.
In short, the multiple cases design is preferred over the single case
design because it provides strong and exact grounds for good quality
research (Yin 1994; 2003)
As specified by Yin (1994; 2003) the case study design represents the
research plan that guides the process of data collection, analysis and
interpretation. Accordingly, the main steps involved in the process of
designing the current research are shown in Figure III – 1.
Define Research Questions
Design Case Questionnaire
Cross Analysis of
Study Customers Satisfaction of Bank Alafalah limited
Select Case Studies
Study Customers Satisfaction of United Bank Limited
Findings about Research
Review
Figure III – 1 Research Design
Source: Developed for current research by author
3. Data Collection Methods and Techniques
Case study research can include both qualitative and quantitative data
and recent methodologists have identified several techniques of data
collection of case study based-research but it is not necessary to utilize all of
these methods (Yin 1994; 2003). These techniques include (1) interviews, (2)
questionnaire, (3) archival records, (4) direct observation, (5) participant
observation, (6) documentation and (7) physical artifacts.
3.1 Questionnaire Instrument
The questionnaire [Appendix] is prepared and designed to measure
the level of customer satisfaction and awareness regarding plastic money.
For measuring the level of credit card awareness 10 questions are
extracted from questionnaire, those questions carry measures which focus
on credit card awareness (Table III - 1)
Table III – 1 Measures Related Awareness
Question
s
Measures
Q.1 Supplementary cards.
Q.2 Zero loss liability.
Q.3 Credit guardian.
Q.4 CIP lounge.
Q.5 Balance transfer.
Q.6 Expiry date.
Q.7 Travel insurance.
Q.8 Deduction charges.
Q.9 Cash advance facility.
Q.10 Cancellation of card.
For measuring the level of customer satisfaction 12 questions are
extracted from questionnaire [Appendix], those questions carry measures
which focus on customer satisfaction (Table III - 2)
Table III – 2 Measures Related to Customer Satisfaction
Question
s
Measures
Q.1 24-hour banking service.
Q.2 Step by step installment payment.
Q.3 Paying of outstanding balance.
Q.4 Drop box.
Q.5 Credit card limit.
Q.6 Reward programs.
Q.7 Service charges.
Q.8 Monthly transactions.
Q.9 Guide lines.
Q.10 Issuance of card.
Q.11 Interest rate.
Q.12 Like to become customer of another bank.
3.2 Internet Sources
The selected cases have internet websites which contains some
information about the organization products, credit card policies,fringe and
benefits and operations. This information is used as a secondary source of
data to acquire additional information about the organisations.
3.3 Interviews
Interviews are also taken from the credit card department of both banks.
This information is primary source of data used to find out that how they
inform about their credit card and its benefits and other legal information to
customer. Simply how they aware their customers about their credit card.
4. Sample Size
The study is aims to measure customer satisfaction and usage. which
is done through the survey of two banks that is United Bank Limited(UBL)
and Bank Alfalah Limited. 50 customers of each bank are selected on
random basis.
5. Measures
One of many methods for the analysis is questionnaire.
Questionnaires are frequently used in socio-economic and business
research, using mainly 5-point (Waldman et al., 2001) or 7-point (Papadakis
et al., 1998) Likert scale type questionnaires. In this thesis a 5-point Likert of
interval measures is adopted.
CHAPTER IV DATA ANALYSIS AND RESULTS
1. Introduction This chapter discusses about findings from two case studies in light of
research questions. The main motive with this study is to investigate
customer awareness and customer satisfaction regarding credit card of both
banks. The findings of two variables are compared with each other and in the
end hypotheses are tested. Figure IV – 1 represents variables which are
used for the case studies.
Fig. IV – 1: Variables used for Case Studies
Case Studies
Case 1: UBL Case 2: BAL
Credit Card Awareness
Customer Satisfaction
Credit Card Awareness
Customer Satisfaction
2. Findings about objectives.
2.1 Findings about Credit Card Awareness.
2.1.1 Findings about credit card awareness of Bank Alfalah Limited.
For measuring the level of Credit card awareness 10 questions are
extracted from [Appendix].
Fig. IV – 2 Responses related to Supplementary cards
In question 1 regarding awareness, 30 customers are strongly
agree that their card gives option of more than 5 supplementary cards
and 20 are agree.
Supplementary cards
0
5
10
15
20
25
30
35
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
Supplementary cards
Fig. IV – 3 Responses related to Zero loss liability
In question 2,20 customers are strongly agree that their card
has zero loss liability while 15 are agree ,10 are neither agree nor
disagree and 5 are disagree.
Zero loss liability
0
5
10
15
20
25
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
Zero loss liability
Fig. IV – 4 Responses related to Credit guardian
In question 3, the measure is credit guardian.10 customers are
strongly agree that their card has option of credit guardian and 20 are
agree ,20 are neither disagree nor agree.
Credit guardian
0
5
10
15
20
25
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
Credit guardian
Fig. IV – 5 Responses related to CIP lounge
In question 4, 20 customers are strongly disagreeing that their
card has not the option of CIP lounge, 15 are disagree and 15 are
neither agree nor disagree.
CIP lounge
0
5
10
15
20
25
StronglyDisagree
Disagree NeitherDisagree nor
Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
CIP lounge
Balance transfer
15
20
25
ust
om
ers
Fig. IV – 6 Responses related to Balance transfer
In question 5,15 customers are strongly agree that their card
has option of balance transfer ,10 are agree ,20 are neither agree nor
disagree and 5 are disagree.
Expiry date
15
20
25
30
of
Cu
sto
mer
s
E i d t
Fig. IV – 7 Responses related to Expiry date
In question 6,25 customers are strongly agree ,10 are agree ,7
are neither disagree nor agree and 8 are disagree with measure that
their card has expiry date till 3 years.
Travel insurance
6
8
10
12
14
16
ces
of
Cu
sto
mer
s
Travel insurance
Fig. IV – 8 Responses related to Travel insurance
In question 7 ,12 are strongly agree,15 are agree ,15 are
neither agree nor disagree and 8 are disagree that their credit card
has travel insurance.
Deduction charges
8
10
12
14
16
of
Cu
sto
mer
s
Deduction charges
Fig. IV – 9 Responses related to Deduction charges
In question 8,12 are strongly agree,8 are agree ,15 are neither
agree nor disagree and 15 are disagree that deduction charges are
same as mentioned in charges schedule.
Cash advance facility
8101214161820
s o
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ust
om
ers
Cash advance facility
Fig. IV – 10 Responses related to Cash advance facility
In question 9 ,the responses came from customers are 18 are
strongly agree,11 are agree,12 are neither agree nor disagree ,5 are
disagree and 4 are strongly disagree.
Cancellation of card
6
8
10
12
14
16
es o
f C
ust
om
ers
Cancellation of card
Fig. IV – 11 Responses related to Cancellation of card
In question 10 the responses collected from customers was 12
customer were strongly agree that their card has facility of easily
cancelation while 8 are agree ,15 are neither agree nor disagree ,7 are
disagree 8 are strongly disagree.
Table IV – 1 present’s measures related to questions along with their
mean values related to credit card awareness.
Table IV – 1: Measures related to Credit card awareness along with
mean values of BAL
Questions Measures Mean
Q.1 Supplementary cards 4.60
Q.2 Zero loss liability 4.0000
Q.3 Credit guardian 3.7800
Q.4 CIP lounge 1.9000
Q.5 Balance transfer 3.7000
Q.6 Expiry date 4.0400
Q.7 Travel insurance 3.6200
Q.8 Deduction charges 3.3000
Q.9 Cash advance facility 3.6800
Q.10 Cancellation of card.
3.1800
The scale of measurement is from 1 – 5, 1 represents strongly
disagree and 5 represents strongly agree to the question. The mean
value of question 1 from the customers of ABL is 4.60 which mean
most of the customers of ABL are agreed with statement that their
bank is giving the option of more than 5 supplementary cards. For
question 2 most of customers are agreed with zero loss liability which
we came to know from the mean value 4.00. The mean value 3.78 of
question 3 says that credit guardian is available in their card. Most of
customers of ABL disagreed that they don’t have awareness of CIP
lounge which is calculated from the mean value 1.9 of question 4.
From question 5 having mean 3.70.in question 6 the mean value is 4.4
which represents that their card has expiry date till 3 years. we came
to know that much of customers are aware of balance transfer for
question, 7, 8, 9 mean values are in between 3-4, it mean customers
are sure whether theirs cards expiry date is till 3 years or not, travel
insurance is available or not, deduction charges are same as
mentioned in charges schedule or not, and can avail cash advance
facility up to 50% of available credit limit or not respectively. We came
to know that more customers are aware of cancellation of card of
question 10 having mean 3.1.
2.1.2 Findings about Credit Card Awareness of bank UBL.
For measuring the level of Credit card awareness 10 questions
are extracted from questionnaire [Appendix].
Fig. IV – 12 Responses related to Supplementary cards
In question 1,27 are strongly disagree that their has more than
5 supplementary cards ,13 are disagree and 10 are neither agree nor
disagree.
Supplementary cards
0
5
10
15
20
25
30
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
Supplementary cards
Fig. IV – 13 Responses related to Zero loss liability
In question 2, 15 are strongly disagreeing that their card has
zero loss liability, 15 are disagree, 10 are neither disagree nor agree
and 10 are agree.
Zero loss liability
0
2
4
6
8
10
12
14
16
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
Zero loss liability
Credit guardian
15
20
25
Cu
sto
mer
s
Fig. IV – 14 Responses related to Credit guardian
In question 3, 5 are strongly disagree ,5 are disagree ,20 are
neither disagree nor agree 10 are agree and 10 are strongly agree
that their card option of credit guardian.
CIP lounge
30
40
50
60
s o
f C
ust
om
ers
CIP lounge
Fig. IV – 15 Responses related to CIP lounge
In question 4,18 are strongly agree, 10 are agree, 10 are
neither agree nor disagree ,10 are disagree and 7 are strongly
disagree that their card has CIP lounge regarding question 4.
Balance transfer
15
20
25
30
of
Cu
sto
mer
s
Balance transfer
Fig. IV – 16 Responses related to Balance transfer
In question 5,25 are strongly disagree ,15 are disagree ,10 are
neither agree nor disagree that their card has balance transfer facility.
Expiry date
10
15
20
25
s o
f C
ust
om
ers
Expiry date
Fig. IV – 17 Responses related to Expiry date
In question 6, 20 customers are strongly disagree ,13 are
disagree ,15 are neither agree nor disagree and 2 are agree that their
card has expiry date till 3 years.
Travel insurance
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ces
of
Cu
sto
mer
s
Travel insurance
Fig. IV – 18 Responses related to Travel insurance
In question 7,14 are strongly disagree ,3 are agree ,18 are
neither agree nor disagree,15 are agree that their card has travel
insurance.
Deduction charges
25
30
35
sto
mer
s
Fig. IV – 19 Responses related to Deduction charges
In question 8, 15 are strongly disagree ,5 are agree ,30 are
neither agree nor disagree that deduction charges are same as
mentioned in charges schedule.
Cash advance facility
15
20
25
of
Cu
sto
mer
s
Cash advance facility
Fig. IV – 20 Responses related to Cash advance facility
In question 9,18 are strongly disagree ,20 are agree ,12 are
neither agree nor disagree that their card has facility of availing 50% of
available credit limit.
Cancellation of card
25
30
sto
mer
s
Fig. IV – 21 Responses related to Cancellation of card
In question 10 the measure used is facility of easily cancellation
of card the 5 customers are strongly disagree,7 are disagree ,25 are
neither agree nor disagree ,13 are agree.
Table IV – 2: Measures related to Credit card awareness along with
mean values of UBL
Questions Measures Mean
Q.1 Supplementary cards 1.6600
Q.2 Zero loss liability 2.3000
Q.3 Credit guardian 3.3000
Q.4 CIP lounge 3.6000
Q.5 Balance transfer 1.7200
Q.6 Expiry date 1.9800
Q.7 Travel insurance 2.6800
Q.8 Deduction charges 2.3200
Q.9 Cash advance facility 1.8800
Q.10 Cancellation of card.
2.9200
The scale of measurement is from 1 – 5, 1 represents strongly
disagree and 5 represents strongly agree to the question. The mean
value of question 1 from the customers of UBL is 1.66 which means
most of the customers of UBL are not agreed with statement that their
bank is giving the option of more than 5 supplementary cards. For
question 2 most of customers are agreed with zero loss liability which
we came to know from the mean value 2.3. The mean value 3.30 of
question 3 says that credit guardian is available in their card. Most of
customers of UBL agreed that they do have awareness of CIP lounge
which is calculated from the mean value 3.60 of question 4. from
question 5 having mean 1.7 we came to know that not much of
customers are aware of balance transfer .for question 6,7,8,9 mean
values are in between 1.8-2.8, it mean customers are not sure
whether theirs cards expiry date is till 3 years or not, travel insurance
is available or not, deduction charges are same as mentioned in
charges schedule or not, and can avail cash advance facility up to
50% of available credit limit or not respectively. We came to know that
more customers are not aware of cancellation of card of question 10
having mean 2.9.
2.2. Findings about comparison of result of awareness level
Fig. IV – 22 comparison of result of awareness level
By comparing mean result of awareness level of both banks we
came to know that in question 1,customers of BAL are more aware
0
1
2
3
4
5
Mea
n
Number of Questions
Comparision of Awareness
BAL 4.6 4 3.8 1.9 3.7 4 3.6 3.3 3.7 3.2
UBL 1.7 2.3 3.3 3.6 1.7 2 2.7 2.3 1.9 2.9
1 2 3 4 5 6 7 8 9 10
that their card has more than 5 supplementary cards by getting the
mean of 4.6 than the customers of UBL having the mean of 1.7.in
question 2,many customers are aware that their card has zero loss
liability of BAL having mean 4 than the UBL which has mean value 2.3
.in question 3 ,having mean 3.8 this means that BAL customer’s are
aware of credit guardian and they know that their card has facility of
credit guardian while in UBL 3.3 mean value shows that their
customers are also aware about about credit guardian but less than
BAL customers. In question 5 mean value 1.9 shows that customers of
BAL are aware of CIP lounge than the customers of UBL, having
mean value of 3.6 which shows the UBL’s customers are more aware
of CIP lounge. in question 5,3.7 mean shows that customers of BAL
are aware that their card has facility of balance transfer option while
1.7 mean of UBL shows that customers are not aware with it.
In question 6,mean value 4 shows that much customers are aware
that expiry date of their card is till 3 years while 2 mean value of UBL
show that customers are not agree. In question 7, mean value 3.6
shows that customers of BAL are agree that their card has travel
insurance while 2.7mean of UBL shows that customers are not highly
disagree nor agree. in question8,mean value of 3.3 of BAL show that
customers are more customers knows that the deduction charges are
same as mentioned in charges schedule while 2.3 mean of UBL
shows that customers are a little aware about this. in question 9 ,the
measure used is cash advance facility up to 50% of available credit
limit got the mean value 3.7 of BAL shows that customers are agree
while 1.9 mean value of UBL shows that customers are not much
aware. in question 10 the mean value 3.2 of BAL shows that
customers are aware of facility of easily cancellation of card while 2.9
mean value of UBL shows that they are aware but less than BAL.
2.3 Finding the customer satisfaction level in concerning banks.
2.3.1 Findings about Customer satisfaction level of bank BAL
For measuring the level of Customer satisfaction 12 questions
are extracted from [Appendix].
Fig. IV – 23 Responses related to 24-hour banking service
In question 1,the measure used is supplementary card.20
customers are strongly agree, 20 customers are just agree, 10
customers are neither agree nor disagree.
24-hour banking service
0
5
10
15
20
25
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
24-hour banking service
Fig. IV – 24 Responses related to Step by step installment payment
In question 2,10 customers are strongly agree, 10 customers
are just agree, 20 customers are neither agree nor disagree, 10
customers are disagree that their card has the option of step by step
installment payment.
Step by step installment payment
0
5
10
15
20
25
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
Step by step installmentpayment
Fig. IV – 25 Responses related to Paying of outstanding balance
In question 3,15 customers are strongly agree, 18 customers
are just agree, 10 customers are neither agree nor disagree, 7
customers are disagree related to paying of outstanding balance.
Paying of outstanding balance
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StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
Paying of outstandingbalance
Fig. IV – 26 Responses related to Drop box
In question 4, 25 customers are strongly agree, 20 customers
are just agree, 5 customers are neither agree nor disagree regarding
to the usage of drop box.
Drop box
0
5
10
15
20
25
30
StronglyDisagree
Disagree NeitherDisagree nor
Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
Drop box
Fig. IV – 27 Responses related to Credit card limit
In question 5,10 customers are strongly agree, 18 customers
are just agree, 8 customers are neither agree nor disagree, 14
customers are disagree related to limit of the credit card.
Credit card limit
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StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
Credit card limit
Fig. IV – 28 Responses related to Reward programs
In question 6,15 customers are strongly agree, 25 customers
are just agree, 10 customers are neither agree nor disagree that they
are happy with the reward program of the card.
Reward programs
0
5
10
15
20
25
30
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
Reward programs
Fig. IV – 29 Responses related to Service charges
In question 7,25 customers are strongly agree, 15 customers
are just agree, 10 customers are neither agree nor disagree related to
service charges.
Service charges
0
5
10
15
20
25
30
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
Service charges
Fig. IV – 30 Responses related to Monthly transactions
In question 8,7 customers are strongly disagree, 3 customers
are disagree, 9 customers are neither agree and nor disagree, 18
customers are agree and 13 customers are strongly agree.
Monthly transactions
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StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
Monthly transactions
Fig. IV – 31 Responses related to Guide lines
In question 9, 20 customers are strongly agree, 20 customers
are agree, 10 customers are neither disagree and nor agree regarding
the measure that guide lines are understandable.
Guide lines
0
5
10
15
20
25
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
Guide lines
Fig. IV – 32 Responses related to Issuance of card
In question 10, 22 customers are strongly agree, 16 customers
are agree, 12 customers are neither agree and nor disagree that
issuance of card is easy.
Issuance of card
0
5
10
15
20
25
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
Issuance of card
Fig. IV – 33 Responses related to Interest rate
7 customers are strongly disagree,8 are disagree,15 are neither
agree nor disagree,12 are agree,8 are strongly agree related to
Interest rate.
Interest rate
0
2
4
6
8
10
12
14
16
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
Interest rate
Fig. IV – 34 Responses related to like to become customer of another
bank
10 customer are strongly disagree,15 are agree,19 are neither
agree nor disagree,5 are agree and 1 is disagree.
like to become customer of another bank
02468
101214161820
Str
ongl
yD
isag
ree
Nei
ther
Dis
agre
eno
rA
gree
Str
ongl
yA
gree
Scale
Res
po
nce
s o
f C
ust
om
ers
like to become customer ofanother bank
Table IV – 3 Presents measures related to questions along with their
mean values related to Customer satisfaction.
Table IV – 3 Measures related to Customer satisfaction along with
mean values of BAL
Questions Measures Mean
Q.1 24-hour banking service 4.2000
Q.2 Step by step installment
payment
3.4000
Q.3 Paying of outstanding
balance
4.0400
Q.4 Drop box 4.4000
Q.5 Credit card limit 3.4800
Q.6 Reward programs 4.1000
Q.7 Service charges 4.3200
Q.8 Monthly transactions 4.2000
Q.9 Guide lines 3.9000
Q.10 Issuance of card 4.2000
Q.11 Interest rate 3.1200
Q.12 Like to become customer of
another bank
3.5800
Mean value 4.2 shows that customers are strongly agree with
measure 24-hour banking.3.4 mean value of measure step by step
payment shows that customer are agree with this.4.0 mean value of
3rd measure shows that customers are more than agree.4.4 mean
value of measure drop box again shows that customers are more than
agree. Mean value 3.48 shows that customers are below agree with
credit card limit. Customers are happy with reward program, service
charges and monthly transactions, showed by mean value 4.1,4.3,4.2
respectively. Customers are nearly agreed with measure that
guidelines are easily understandable. 4.2 mean value of question 10
shows that customers are satisfied that issuance of card is easy.
interest rate are satisfactory came by the mean value of question 11
which is 3.1200.question 12 has mean value of 3.5 shows that
average customers like to become customer of any other bank.
2.3.2 Findings about Customer satisfaction level of UBL
For measuring the level of Customer satisfaction 12 questions
are extracted from [Appendix].
Fig. IV – 35 Responses related to 24-hour banking service
Responses of customers regarding question 1”24-hour banking
services” of UBL,20 are strongly agree,10 are agree, around 15 are
neither agree nor disagree and 5 are disagree .
24-hour banking service
0
5
10
15
20
25
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
24-hour banking service
Fig. IV – 36 Responses related to Step by step installment payment
Step by step installment payment
0
5
10
15
20
25
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
Step by step installmentpayment
In questions 2,20 customers are strongly agee,10 are agree,15
are neither agree nor disgree and 5 are disagree with “Step by step
installment payment”
Fig. IV – 37 Responses related to Paying of outstanding balance
Paying of outstanding balance
0
5
10
15
20
25
30
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nse
s o
f C
ust
om
ers
Paying of outstandingbalance
In question 3,the measure is paying of outstanding balance and
the response came from customers is,25 are strongly disagree ,20 are
disagree and 5 are neither disagree nor disagree
Fig. IV – 38 Responses related to Drop box
Drop box
0
5
10
15
20
25
30
35
StronglyDisagree
Disagree NeitherDisagree nor
Agree
Agree StronglyAgree
Scale
Res
po
nse
s o
f C
ust
om
ers
Drop box
Drop box is measure used in 4th question regarding customer
satisfaction, show 6 are strongly disagree ,20 are disagree ,13 are
neither agree nor disagree, 4 are agree and 7 are strongly agree .
Fig. IV – 39 Responses related to Credit card limit
Credit card limit
0
5
10
15
20
25
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nse
s o
f C
ust
om
ers
Credit card limit
In question 5,7 are strongly agree that they get their credit card
limit as per their need while 4 are agree,13 are neither agree nor
disagree ,20 are disagree and 6 are strongly disagree.
Reward programs
0
5
10
15
20
25
30
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nse
s o
f C
ust
om
ers
Reward programs
Fig. IV – 40 Responses related to Reward programs
In question 6,only 5 customers are happy with their reward
program ,5 are agree ,10 are neither agree nor disagree,10 are
disagree and 25 are strongly disagree.
Service charges
0
5
10
15
20
25
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nse
s o
f C
ust
om
ers
Service charges
Fig. IV – 41 Responses related to Service charges
In question 7,only 5 are strongly satisfied with service charges
,5 are agree,20 are neither agree nor disagree ,5 are disagree,15 are
strongly disagree.
Fig. IV – 42 Responses related to Monthly transactions
Monthly transactions
0
5
10
15
20
25
30
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
Monthly transactions
In question 8,25 are neither agree nor disagree that monthly
transaction are easily understandable or not, 5 are disagree ,20 are
strongly disagree.
Fig. IV – 43 Responses related to Guide lines
Guide lines
0
5
10
15
20
25
30
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
Guide lines
In question 9,25 customers are strongly disagree that guide
lines provided to them are easily understandable,5 are disagree ,20
are neither agree nor disagree.
Fig. IV – 44 Responses related to Issuance of card
Issuance of card
0
5
10
15
20
25
30
35
40
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nce
s o
f C
ust
om
ers
Issuance of card
35 customers are strongly disagree, 10 customers are
disagree,5 customers are neither disagree nor disagree.
Fig. IV – 45 Responses related to Interest rate
Interest rate
0
2
4
6
8
10
12
14
16
StronglyDisagree
Disagree NeitherDisagreenor Agree
Agree StronglyAgree
Scale
Res
po
nse
s o
f cu
sto
mer
s
Interest rate
15 customers are strongly disagreeing, 10 customers are
disagreeing, and 10 customers are neither disagree nor disagree.
Fig. IV – 46 Responses related to like to become customer of another
bank
like to become customer of another bank
0
5
10
15
20
25
Str
ongl
yD
isag
ree
Nei
ther
Dis
agre
eno
rA
gree
Str
ongl
yA
gree
Scale
Res
po
nce
s o
f C
ust
om
ers
like to become customer ofanother bank
5 customers are strongly disagreeing, 5 customers are
disagree, 5 customers are neither disagree nor disagree.
Table IV – 4 Presents measures related to questions along with their
mean values related to Customer satisfaction.
Table IV – 4 Measures related to Customer satisfaction along with
mean values of UBL
Questions Measures Mean
Q.1 24-hour banking service 3.9000
Q.2 Step by step installment
payment
3.3000
Q.3 Paying of outstanding
balance
1.6000
Q.4 Drop box 1.5000
Q.5 Credit card limit 2.7200
Q.6 Reward programs 1.9000
Q.7 Service charges 2.5600
Q.8 Monthly transactions 2.1000
Q.9 Guide lines 1.9800
Q.10 Issuance of card 1.4000
Q.11 Interest rate 2.7000
Q.12 Like to become customer of
another bank
4.0000
The mean value 3.9 shows that customers are below agree that
their card has 24 hour banking service. mean value 3.3 says that
average customers are satisfied with step by step installment
payment.1.6 mean value shows that customers are disagree with their
card has option of paying 5%of outstanding balance.1.5 mean value
shows customers are hardly use drop box.2.7 mean value of measure
credit card limit shows customers are near to average.1.9 mean value
shows that customers are not happy with reward program. in question
7 mean value 2.5 show that customers are not very much satisfied
with service charges. Mean value 2.1 shows that customers are not
that much satisfied.1.9 mean value shows that guide lines are not
easily understandable. Issuance of card 1.4 shows that customers are
also not agree.2.7 mean value shows that customers are not satisfied
with interest rate. mean value 4 shows that customers would like to
become customer of any other bank.
2.4 Findings comparison of result of customer satisfaction level.
Fig. IV – 47 Comparison of mean of Customer Satisfaction of bank
ABL and UBL
By Comparing the mean value 4.2 of BAL shows that
customers are strongly agree with measure 24-hour banking but The
mean value 3.9 of UBL shows that customers are below agree that
their card has 24 hour banking service .3.4 mean value of BAL having
measure step by step payment shows that customer are agree with
this while mean value 3.3 of UBL says that average customers are
satisfied with step by step installment payment.4.0 mean value of 3rd
measure of BAL shows that customers are more than agree where as
1.6 mean value shows that customers are disagree with their card has
option of paying 5%of outstanding balance.4.4 mean value of measure
0
1
2
3
4
5
Mea
n
Number of Questions
Comparision of Customer Satisfaction
BAL 4 3 4 4 3 4 4 4 4 4 3 4
UBL 4 3 2 2 3 2 3 2 2 1 3 4
1 2 3 4 5 6 7 8 9 10 11 12
drop box at BAL again shows that customers are more than agree
mean while 1.5 mean value shows customers hardly use drop box. At
BAL mean value 3.48 shows that customers are below agree with
credit card limit 2.7 mean value of measure credit card limit shows
customers are near to average. customers of BAL are happy with
reward program ,service charges and monthly transactions,showd by
mean value 4.1,4.3,4.2 respectively where as the mean value of
above three measure is in between 1.9-2.5 it shows that customers
are in between of strongly disagree and disagree. Customers of BAL
are nearly agree with measure that guidelines are easily
understandable but the1.9 mean value of the customers of UBL shows
that guide lines are not easily understandable.4.2 mean value of
question 10 shows that customers of BAL are satisfied that issuance
of card is easy and at UBL 1.4 shows that customers are also not
agree .interest rate are satisfactory came by the mean value of
question 11 which is 3.1200 and at UBL 2.7 mean value shows that
customers are not satisfied with interest rate .question 12 has mean
value of 3.5 shows that average customers like to become customer of
any other bank where as mean value 4 shows that customers would
like to become customer of any other bank.
3. Hypotheses Testing 3.1 Hypothesis 1
H1 Customers of BAL have high awareness of using credit card
than customers of UBL.
Statistically can be represented as: Credit card AwarenessUBL <
Credit card AwarenessBAL
Result: Table IV – 27 presents the descriptive statistics of
hypothesis 1. For hypothesis 1 the variable credit card awareness of
both banks is selected which has 10 different measures related to
credit card awareness. The descriptive statistics presents the
summary of whole data. 9 out of 10 measurement items have higher
mean values in BAL than UBL. On the basis of higher mean values in
more measurement items, we can state that customers of BAL have
high awareness of using credit card than customers of UBL .which
proves our hypothesis 1 is valid.
Table IV – 28 shows the T test of hypothesis 1, which is used to test
whether there is a significant differences between the means of two
groups. Since we are using a 95% confidence, alpha = 0.05, therefore
if p < 0.05 we accept our hypothesis and reject null hypothesis. Under
the “t-test for Equality of Variances” the “Sig.” for “Equal variances
assumed”, 9 out of 10 measurement items have less than 0.05 values,
therefore we can say there is a significant difference between the
variance of two groups.
Table IV – 5 Descriptive statistics of hypothesis 1
Group Statistics
ID N Mean Std. Deviation Std. Error Mean
Supplementary cards BAL 50 4.6000 .49487 .06999
Table IV – 6 T-Test of hypothesis 1
UBL 50 1.6600 .79821 .11288
Zero loss liability BAL 50 4.0000 1.01015 .14286
UBL 50 2.3000 1.11117 .15714
Credit guardian BAL 50 3.7800 .73651 .10416
UBL 50 3.3000 1.19949 .16963
CIP lounge BAL 50 1.9000 .83910 .11867
UBL 50 3.6000 1.35526 .19166
Balance transfer BAL 50 3.7000 1.01519 .14357
UBL 50 1.7200 .80913 .11443
Expiry date BAL 50 4.0400 1.14214 .16152
UBL 50 1.9800 .93656 .13245
Travel insurance BAL 50 3.6200 1.02798 .14538
UBL 50 2.6800 1.18563 .16767
Deduction charges BAL 50 3.3000 1.16496 .16475
UBL 50 2.3200 .89077 .12597
Cash advance facility BAL 50 3.6800 1.28476 .18169
UBL 50 1.8800 .77301 .10932
Cancellation of card. BAL 50 3.1800 1.38048 .19523
UBL 50 2.9200 .89989 .12726
Independent Samples Test
Levene's Test for Equality of Variances t-test for Equality of Means
3.2 Hypothesis 2
H2 Customer satisfaction level is same in customers of BAL and UBL.
F Sig. t df Sig. (2-tailed) Mean Difference
Std. Error Difference
95% Confidence Interval of the Difference
Lower Upper
Supplementary cards
Equal variances assumed
21.090 .000 22.135 98 .000 2.94000 .13282 2.67643 3.20357
Equal variances not assumed
22.135 81.819
.000 2.94000 .13282 2.67577 3.20423
Zero loss liability
Equal variances assumed
1.935 .167 8.005 98 .000 1.70000 .21237 1.27855 2.12145
Equal variances not assumed
8.005 97.123
.000 1.70000 .21237 1.27851 2.12149
Credit guardian
Equal variances assumed
8.772 .004 2.411 98 .018 .48000 .19906 .08497 .87503
Equal variances not assumed
2.411 81.350
.018 .48000 .19906 .08396 .87604
CIP lounge Equal variances assumed
16.192 .000 -7.541 98 .000 -1.70000 .22542 -2.14735 -1.25265
Equal variances not assumed
-7.541 81.754
.000 -1.70000 .22542 -2.14846 -1.25154
Balance transfer
Equal variances assumed
4.912 .029 10.785 98 .000 1.98000 .18359 1.61567 2.34433
Equal variances not assumed
10.785 93.355
.000 1.98000 .18359 1.61544 2.34456
Expiry date Equal variances assumed
2.522 .115 9.862 98 .000 2.06000 .20888 1.64548 2.47452
Equal variances not assumed
9.862 94.379
.000 2.06000 .20888 1.64528 2.47472
Travel insurance
Equal variances assumed
1.485 .226 4.236 98 .000 .94000 .22192 .49960 1.38040
Equal variances not assumed
4.236 96.070
.000 .94000 .22192 .49949 1.38051
Deduction charges
Equal variances assumed
4.508 .036 4.725 98 .000 .98000 .20739 .56843 1.39157
Equal variances not assumed
4.725 91.701
.000 .98000 .20739 .56808 1.39192
Cash advance facility
Equal variances assumed
16.792 .000 8.489 98 .000 1.80000 .21205 1.37920 2.22080
Equal variances not assumed
8.489 80.367
.000 1.80000 .21205 1.37805 2.22195
Cancellation of card.
Equal variances assumed
12.488 .001 1.116 98 .267 .26000 .23305 -.20247 .72247
Equal variances not assumed
1.116 84.274
.268 .26000 .23305 -.20341 .72341
Statistically can be represented as: Customer Satisfaction BAL =
Customer Satisfaction UBL
Result: Table IV – 29 presents the descriptive statistics of hypothesis
2. For hypothesis 2 the variable of both banks is selected which has
12 different measures related to Customer Satisfaction. The
descriptive statistics presents the summary of whole data. 9 out of 10
measurement items have higher mean values in BAL than UBL.On the
basis of higher mean values in more measurement items, we can
state that Customer satisfaction is higher in (Foreign bank) BAL than
(Domestic bank) UBL which proves our hypothesis 2 is null H0.
Table IV – 30 shows the T test of hypothesis 2, which is used to test
whether there is a significant differences between the means of two
groups. Since we are using a 95% confidence, alpha = 0.05, therefore
if p < 0.05 we reject our hypothesis and accept null hypothesis. Under
the “t-test Equality of Variances” the “Sig.” for “Equal variances
assumed”, 2 out 12 measurement items have less than 0.05 values,
therefore we can say there is for a significant difference between the
variance of two groups
Group Statistics
.
Table IV – 7 Descriptive statistics of hypothesis 2
ID N Mean Std. Deviation Std. Error Mean
24-hour banking service
BAL 50 4.2000 .75593 .10690
UBL 50 3.9000 1.05463 .14915
Step by step installment payment
BAL 50 3.4000 1.03016 .14569
UBL 50 3.3000 1.28174 .18127
Paying of outstanding balance
BAL 50 4.0400 .75485 .10675
UBL 50 1.6000 .67006 .09476
Drop box BAL 50 4.4000 .67006 .09476
UBL 50 1.5000 .67763 .09583
Credit card limit BAL 50 3.4800 1.11098 .15712
UBL 50 2.7200 1.21286 .17152
Reward programs BAL 50 4.1000 .70711 .10000
UBL 50 1.9000 1.05463 .14915
Service charges BAL 50 4.3200 .76772 .10857
UBL 50 2.5600 1.24802 .17650
Monthly transactions
BAL 50 4.2000 .75593 .10690
UBL 50 2.1000 .95298 .13477
Guide lines BAL 50 3.9000 .73540 .10400
UBL 50 1.9800 1.03982 .14705
issuance of card BAL 50 4.2000 .80812 .11429
UBL 50 1.4000 .67006 .09476
Interest rate BAL 50 3.1200 1.27199 .17989
UBL 50 2.7000 1.43214 .20253
like to become customer of another bank
BAL 50 3.5800 .90554 .12806
UBL 50 4.0000 .78246 .11066
95
Table IV –8 T-Test of hypothesis 2
Independent Samples Test
Levene's Test for Equality of Variances t-test for Equality of Means
F Sig. t df Sig. (2-tailed)
Mean Difference
Std. Error Difference
95% Confidence Interval of the Difference
Lower Upper
24-hour banking service
Equal variances assumed 9.750 .002 1.635 98 .105 .30000 .18350
-.06416
.66416
Equal variances not assumed
1.635
88.834
.106 .30000 .18350 -.06463
.66463
Step by step installment payment
Equal variances assumed
3.563 .062 .430 98 .668 .10000 .23255 -.36150
.56150
Equal variances not assumed
.430
93.666
.668 .10000 .23255 -.36176
.56176
Paying of outstanding balance
Equal variances assumed
.092 .762 17.094
98 .000 2.44000 .14274 2.15673
2.72327
Equal variances not assumed
17.094
96.641
.000 2.44000 .14274 2.15668
2.72332
Drop box Equal variances assumed
.000 1.000 21.518
98 .000 2.90000 .13477 2.63255
3.16745
Equal variances not assumed
21.518
97.988
.000 2.90000 .13477 2.63255
3.16745
Credit card limit Equal variances assumed
.003 .958 3.267 98 .001 .76000 .23261 .29840
1.22160
Equal variances not assumed
3.267
97.255
.002 .76000 .23261 .29835
1.22165
Reward programs Equal variances assumed
13.274 .000 12.252
98 .000 2.20000 .17957 1.84365
2.55635
Equal variances not assumed
12.252
85.649
.000 2.20000 .17957 1.84301
2.55699
Service charges Equal variances assumed
12.214 .001 8.494 98 .000 1.76000 .20722 1.34879
2.17121
Equal variances not assumed
8.494
81.439
.000 1.76000 .20722 1.34774
2.17226
Monthly transactions
Equal variances assumed
14.377 .000 12.208
98 .000 2.10000 .17202 1.75863
2.44137
Equal variances not assumed
12.208
93.174
.000 2.10000 .17202 1.75841
2.44159
Guide lines Equal variances assumed
17.495 .000 10.660
98 .000 1.92000 .18011 1.56257
2.27743
Equal variances not assumed
10.660
88.209
.000 1.92000 .18011 1.56207
2.27793
issuance of card Equal variances assumed
3.752 .056 18.860
98 .000 2.80000 .14846 2.50538
3.09462
Equal variances not assumed
18.860
94.751
.000 2.80000 .14846 2.50526
3.09474
Interest rate Equal variances assumed 4.355 .039 1.550 98 .124 .42000 .27089
-.11757
.95757
Equal variances not assumed
1.550
96.653
.124 .42000 .27089 -.11766
.95766
like to become customer of another bank
Equal variances assumed 4.802 .031 -2.482 98 .015 -.42000 .16925
-.75587
-.08413
CHAPTER V CONCLUSION AND DISCUSSION
1. Conclusion
As the name suggests in this chapter well we discuss about all the
findings of our research. In order to obtain authentic data.
1.1 Conclusion about findings While moving to cash-less society, an earlier step is the increasing
use credit card stage. Have we reached the stage where credit card is more
desirable than currency notes? Obviously, not. On the contrary, majority of
our population, which resides in villages, is still averse to banking system
probably owing to chronic illiteracy and below-the-subsistence-level living
conditions. It is, therefore, a small segment of literate civil population which
alone is left to court with credit card and other commercial papers.
Credit cards are often used for `big ticket' spending in Pakistan, like
dining at 5 star hotels, and purchasing (often reimbursable) air tickets.
Industry sources believe that in future credit cards are also likely to be used
in a big way for the payment of school fees, and hospitalization expenses.
Projections for the 2003-2008 period, the number of financial cards in
circulation has registered a compounded annual growth rate of nearly 51 per
cent.
On the other hand, in the form of additional credit utilized by the
cardholders, it adds to the "money supply" in the country's money market.
However, it also tends to increase the demand for goods and services which,
in turn, should increase production and reduce unemployment.
This is indeed a good sign. Corresponding increase in per capita
income and the overall economic well being of the nation as is associated
with the increased production of capital goods. Though credit cards have
taken the urban markets by storm but it is still time before this industry flexes
its muscles in the rural markets too. In the urban markets today one get to
see almost all establishments no matter big or small, accepting plastic as a
mode of payment but it is still to take off in the smaller towns. Reasons for
this can be ascribed to there still semi-literate and credit shy people in small
and semi urban towns and also because technology has failed to touch their
lives. Having said that, there exists a tremendous opportunity for companies
to spread their wings and increase their card member base by properly
tapping this segment.
The literacy level in any case must be raised to 100%, Use of credit
cards should be popularized. To discourage cash transactions.
1.2. Conclusion about hypotheses
1.2.1 Hypothesis 1
My Hypothesis 1 was Customers of BAL have high awareness
of using credit card than customers of UBL and it was proved as
alternative hypothesis that means my hypothesis was
correct.UBL(Domestic Bank) customers awareness is low than the
BAL (Foreign Bank) customers.
1.2.2 Hypothesis 2
Hypothesis 2 was Customer satisfaction level is same in customers of BAL
and UBL.and it was proved as null Hypothesis that means my hypothesis
was incorrect. Customer satisfaction level in BAL is higher than the customer
satisfaction level in UBL.
2. Discussion
Data gathering is not an easy task and it is really challenging being alone or
solo researcher. The availability of data and its quality are really important.
The primary problem I faced was lack of awareness of credit cards in credit
card department of concern banks, poor skills to communicate properly .lack
of customer importance. Lack of researcher importance. They used to send
me from one branch to another not knowing from which branch to gather data
properly about credit card. The second problem faced was findings
customers, they are scattered.
REFRENCES
Aslam, M.W. (2008) Plastic Money Accountancy Forum. Dawn, October 05
Claessens, S. and Laeven, L. (2003) What Drives Bank Competition? Some International Evidence, World Bank Policy, Research Working Paper (3113)
Jaffery, S.S.A (2010)"The Feasibility of Plastic Money in Pakistan". Economic Review, February, 08(Accessed 2010, febraury,15 )
Mian, A. (2003) Foreign, Private Domestic and Government Banks: New Evidence from Emerging Markets, JOURNAL OF BANKING AND FINANCE, 2003
Saeedi A.T. (2005) Consumer Financing: Credit Card in Focus. Pakistan Banks' Association (Accessed 2010, March 10)
Syed, R. (2006) Plastic money boosts sales at 6 shoes outlets by 45 percent. Daily Times, December 3.
http://bankalfalah.com (2010) Credit Cards offered by Bank Alfalah Limited (Accessed 2010 , Feburuary,10)
http://bankalfalah.com (2010) Fringe and Benefits of Credit card by
BAL(Accessed 2009, March,17)
http://www.bookrags.com/history/america-1950s-business-and-the- economy/sub11.html (1959) America 1950-1959: Business and the Economy (Accessed 2010February 20)
https://www.ubl.com.pk/ (2010) Credit Cards offered by United Bank Limited
(Accessed 2010, Feburuary,18) https://www.ubl.com.pk/ (2009) Fringe and Benefits of Credit card by UBL
(Accessed 2010, March,18)
APPENDIX
Questionnaire 1
Participant ID:
Organization:
Designation:
Date:
What will happen with your data? Your data will be treated with strictest confidentiality, will only be used for the purposes of this study. What advantages do you have from participating? When answering, you will automatically review the problems involved intensively, perhaps even receive new stimuli. You will be of great help to research. Response of questions has five options; you are supposed to select one of them. Responses are defined below: Response Explanation
1. Strongly Disagree When you are 100% sure that statement is false.
2. Disagree When you are 80 – 90% sure that statement is false.
3. Neither Agree Nor Disagree When you don’t know at all about the statement.
4. Agree When you are 80 – 90% sure that statement is true.
5. Strongly Agree When you are 100% sure that statement is true.
Note: Select one box that is applicable.
AWARENESS
Strongly Disagree
Disagree Neither Agree
nor Disagree
Agree Strongly Agree
1.
My card gives option of more than 5 supplementary cards.
□ □ □ □ □
2.
My card has zero loss liability(no charges on losing card).
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3.
Option of credit guardian() is available in my card.
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4.
My card gives free CIP lounge(Take advantage of the special CIP Lounge at Karachi International Airport with free secretarial services, free buffet, internet connection, reading material and 24 - Hour porter facilities).
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5.
Balance transfer option is in my card.
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6.
The expiry date of my card is till 3 year.
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7.
My credit card has travel insurance (any sort of accident that might befall them while traveling).
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8.
The deduction charges are same as mentioned in charges schedule.
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9.
I can avail cash advance facility upto 50% of available credit limit.
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10.
Easily cancellation of card.
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CUSTOMER SATISFACTION
Strongly Disagree
Disagree Neither Agree
Nor Disagree
Agree Strongly Agree
1.
I am satisfied with 24-hour banking service of my card.
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2.
I am satisfied with monthly step by step iinstallment payment.
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3.
My card gives free CIP lounge(Take advantage of the special CIP Lounge at Karachi International Airport with free secretarial services, free buffet, internet connection, reading material and 24 - Hour porter facilities).
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4.
I use drop box properly or regularly.
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5.
I m satisfied with my credit card limit as per my need .
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6.
I am happy with reward programs of my card(For every Rs. 50 ,you spend you will earn one fortune point).
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7.
I am satisfied with service charges of my card.
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8.
Monthly transactions of my card are easily understandable.
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9.
Guide lines provided by my bank for my credit card are easily understandable.
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10.
I did not find any difficulty regarding issuance of card.
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11.
Interest rate are satisfactory.
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12.
I would like to become customer of another bank which provides more benefits than my bank.
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______________________________________________________________________________________________________________________
How long did you take to complete this questionnaire? ________ minutes.
Do you want to receive result of this survey? □ Yes □ No
Your response is very much appreciated. Thank you for participating!
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