report on dutch bangla bank

7/22/2019 Report on Dutch Bangla Bank

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Term Paper on

Dutch Bangla Bank Ltd.Service Analysis

Course: MKT 412 (Service Marketing)

Submission Date: 3 April 2013

Submitted to:

Saadia Shabnam

Senior Lecturer

Department of Business Administration

East West University, Dhaka

Submitted by:

1. Chowdhury Ishita IsratId. 2009-1-10-198

2. Jubair RahmanId. 2009-2-10-155

3. Farhana SharminId. 2010-1-10-128 (Sec-1)

4. Sanjib DasId. 2009-2-10-228

East West University


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To

Saadia Shabnam

Senior Lecturer

Dept. of Business Administration

East West University, Dhaka

Sub: Submission of Term Paper

Dear Sir,

It is our pleasures to submit term paper on Service Analysis of Dutch-Bangla Bank Ltd.

Bangladesh, as a part of our B.B.A. Program. We tried our best to gather relevant information for

preparing a complete report by following our honorable course instructors instruction. Without

your sincere co-operation and proper guideline, it would not possible for us to prepare the report.

For this act of kindness, we are grateful to you.

This report is not free from mistake due to some limitations. We hope you accept it with gracious

consideration.

Sincerely yours1. Chowdhury Ishita Israt; Id. 2009-1-10-1982. Jubair Rahman; Id. 2009-2-10-1553. Farhana Sharmin, Id. 2010-1-10-128 (Sec-1)4. Sanjib Das; Id. 2009-2-10-228


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Table of Contents

Introduction.................................................................................................................................... 4

Marketing Mix- 7Ps.............................................................................................................. 5Product Mix........................................................................................................................... 5

Price Mix ....6

Place Mix ...8

Promotion Mix....9

Different Ways of Promotion.10

Service Blueprint ................................................................................................................. 12

Servicescape ........................................................................................................................ 13

Measuring Service Quality by SERVQUAL Method ................................................................ 15

SERVQUAL Instruments- Expectations.15

SERVQUAL Instruments- Perceptions...17

Service Recovery.20


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Introduction

Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs and

satisfaction and to become their first choice in banking. Taking cue from its pool esteemed

clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that upholds and

epitomizes its vaunted marquees "Your Trusted Partner"

It has the largest ATM network in Bangladesh with 2375 booths and 126 branches around the

country. Along with the most accessible banking services DBBL has given its customers the

assurance of safety and security.

Origin

We have been assigned to prepare this report by our honorable instructor of Service

Marketing course Ms. Saadia Shabnam as a requirement of the completion of the course.

Objective

The objective is to overview the service process, efficiency and recoveries of Dutch Bangla

Bank Ltd.

Methodology

Data are useful only when we analyze them. After collecting the required data we analyzed

the findings. The findings of the report would be analyzed through SERVQUAL analysis and

other tools, which would make the findings more meaningful through graphical

presentation.

Limitation:

This report doesnt include detailed description on several issues like the problems to

promote. Also it lacks information about how to motivate the workers to improve their

performance and how they can hold their customers with new offer.


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Marketing Mix of Dutch Bangla Bank- 7Ps

1. PRODUCT MIXA product can be defined as a bundle of utilities consisting of various product featuresaccompanying services. Bank services are viewed with not just things that are created with value

but they are seen in terms of satisfaction they deliver. E.g. A bank account is seen in terms of

customer satisfaction such as safety, convenience of paying dues keeping records status,

transferring funds, etc.

DBBL Products(i) DEPOSITS:Savings, current, fixed etc.(ii)ADVANCES:

a. Fund Oriented: Term loan, Clean loan, Bill discounting, Advancing, Pre-shipment and post-shipment finance, Secured and unsecured lines of

credit.

b. Non-Fund Oriented: Guarantees, Letter of credit.(iii)International Banking:Letter of credit, Foreign currency

(iv)Consultancy(v)Miscellaneous


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PRODUCT LEVELSCore Benefit:

It is the main or core reason why the customer will buy the service of DBBL. But customers

do not buy the core product, they only buy the benefit. The role of DBBL is to convert thecore products into a generic product which satisfies the needs of the customer. I.e. In case of

bank core value is to deposit and withdraw money.

Basic Product:

The core benefit is converted into a basic product. That is the service can be used by the

customer in order to fulfil his/her needs. It is basically colour, brand name, shape, size,

quality, branding and packaging. I.e. in DBBL basic product is to provide savings a/c, current

a/c, deposits, loans, and overdraft facility.

Expected Product:

It refers to the set of attributes and conditions expected by the customers when they purchase

the service. I.e. if the customer expects the loan to be given within a day and if he gets it in a

day, DBBL has met the expectations of the customer.

Augmented Product:

It is the additional feature that the banks provide which exceeds the customers expectations.

I.e. when one opens a Shuvidha account with DBBL gets an ATM card free. The bank

marketer must offer a multi dimensional product or what is called a product package

Potential Product:

Innovations and product differential is the bases of a Potential Product. If DBBL alter its

services according to the requirements of the individual customers it reaches this level. It is

future oriented. I.e. in case of DBBL the potential product is what kind of future product they

are going to introduce like low interest rate on home loan or personal loan.

2. PRICE MIXThe price mix in the DBBL is nothing but the interest rates charged by bank. In todays

competitive scenario where customer is the king, the bank has to charge them interest at a rate in

accordance to the Bangladesh Bank directives. DBBL also compete in terms of annual fees for


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services like credit cards. Another important aspect of DBBLs pricing policy today is the

interest charged on the Home Loans and Car Loans.

Lets understand this with an example. A particular buyer approaches a bank for a car loan for a

period of 3 years. He is charged Rs. 20,000 as interest. However, if a sale representative of

DBBL comes to know of this deal, he will try to attract the customer by giving him a better deali.e. a loan at a lower rate on interest. In this way, it is the customer that ultimately benefits.

Here is an example of some of the prices charged by ICICI bank for their services:

Card Type Issuance Fee (1st year) Annual Fee(2nd year onwards)

DBBL

NexusClassic FREE

460 (with VAT)

DBBL

Nexus

Silver

1000 1000

DBBL

Nexus

Gold

1500 2000


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THE MOST FAVORABLE PRICING STRATEGY

The most favourable pricing strategy should ensure maximum satisfaction to both the bank as

well as the customers. The price should be set in such a manner that the customer is assured that

he is not being cheated or overcharged by the bank and at the same time the bank is able to reap

maximum profits. Such a pricing stand helps the bank get maximum sales as well as profits sincethe customer feels that by entering such a transaction he is winning.

3. PLACE MIXPlace mix is the location analysis for banks branches. There are number a factors affecting the

determination of the location of the branch of bank. It is very necessary for a bank to be situated

at a location where most of its target population is located.

Some of the important factors affecting the location analysis of a bank are:

1.It is not necessary that all the above conditions have to be satisfied while selecting the location

but it should try and satisfy as many of them as possible.

1. The Trade area2. Population characteristics3. Banking structure4. Proximity to other convenient Outlets5. Real estate rates6. Proximity to public Transportation7. Drawing time8. Location of competition9. Visibility


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4. PromotionPromotion is nothing but making the customer more and more aware of the services and

benefits provided by the bank. The banks today can use a lot of new technology to

communicate to their customers. Along with television media and print media two of the

fastest growing modern tools of communicating with the customers are:

1. Internet Banking2. Mobile Banking

This can be better explained with an example:

SMS services:

SMS functions through simple text messages sent from your cellular phone. These messages are

recognized by DBBL to provide you with the required information.

Customer can register at any authorized agent point of DBBL who can display 'DBBL Agent

Certificate' and 'DBBL Mobile Banking Banner'. Customer can cash-in (deposit) at any DBBL

Branch, DBBL nominated- own agent, UISC, Banglalink, Citycell & Airtel retail points and

Mobicash marked outlets of Grameen Phone.

A bank may have very attractive schemes and services to offer to their customers but they are of

no use if they are not communicated properly to the customers. Promotion is to inform and

remind the individuals and persuade them to accept, recommend or use of product, service or

idea. However there some very important points that is to be considered before the promotion

strategy is made. These points are:


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Different Ways of Promotion

1.Public Relations:In todays competitive scenario developing strong public relations is very important for any

bank to be successful. DBBL has a separate Public Relations department. However

primarily it is considered as a responsibility of the DBBL managers to develop a steady and

strong relationship with their present customers as well as potential customers. This can

be done by a constant follow up, small programmes etc.

2. Word-ofMouth Promotion:This form of promotion is not only very effective in banking services but in any kind of

service. However it is more important in banking for the only reason that this is a service

where trust plays a very important role. If a DBBLsservices are recommended by friends,

relatives, or other well wishers the person is more influenced and inclined towards the

bank. It is very important to note that the internal employees of the bank play a very

important role in word of mouth promotion technique. This is because they can start

the process by recommending the bank to their friends and relatives and after that it is like

a chain, which spreads like a wild fire.

3.

Telemarketing:

In recent times telemarketing has gained increasing importance as an effective tool for

promotion. Telemarketing is a process of making use of sophisticated communication

network for promoting the bank. This includes promoting through television, telephone,

and radio. Nowadays, cell phones are used extensively for the same. This is the most

popular form of promotion. DBBL today have started using SMS and many other services


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supported by cell phones to provide benefits to their customers and thus have tried to

increase their customers.

4. Internet:The use of Internet as a promotional tool is increasing. DBBL is using Internet to promotetheir services. The online banking has made it even easier for the customers to avail the

banks services. No longer do people have to go to their bank branches for small petty

matters like checking their balance etc. All this can be done with the help of a few clicks.

Thus, these were the numerous ways in which DBBL is promoting its services and create

more awareness amongst the people.

5. PeoplePeople are the employees that are the service providers. In a banking sector, the service provider

plays a very important and determinant role in rendering the customers a satisfactory and a good

service. It is extremely essential that the service provider understand what his customers expect

from him. In the banking sector, the customer needs to be guided in a lot of matters, which is

possible only with the help of the service provider.

The position in the eyes of the customer will be perceived by appearance, attitude and behaviour

of the customer contact employees. Not only does the customer contact employee influence the

customers perception but also the customer base of the organization does so.

6. Process MixThe process mix constitutes the overall procedure involved in using the services offered by the

bank. It is very necessary that the process is very customer friendly. In other words a process

should be such that the customer is easily able to understand and easy to follow. Today if

particular banks formalities are long and the procedure very complicated the overall process fails

and the customer may not be inclined towards using that banks services.


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Service Blueprint of DBBL:

Se

Service Blueprint of DBBL

Physical

Evidence

Customer

Action

Onstage

EmployeeAction

Backstage

Employee

Action

Support

Services

Physical Evidence:Physical evidence is the overall layout of the place i.e. how the entire bank has been

designed. Physical evidence refers to all those factors that help make the process much

easier and smoother. For example, in case of DBBL the physical evidence will the banks

parking, exterior and interior design, front desk etc.

Website and

Internet Banking

Bank Exterior

Parking

Sitting

Arrangements

Bank Interior &

decoration

Service

Brochures

WaitingDepositing

Money

Taking

Money

Taking

signature on

Deposit slip

Withdraw

Money by

Check

Collect

Check and

verify Sign

Deliver

Money

Take

Money to

the Vault

C-1 C-2 C-3 C-4

Collecting

Debit Card

Verify

Account &

Sign

Deliver

Card

Electronic

Token System

Line of Interaction

Line of Visibilit

Line of Internal Interaction

Vault

Operation

Customer

Accounts

Internal

Database


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Customer ActionCustomer actions are the set of activities that are done by customers while taking any service. In

this case, depositing money, withdrawing, applying for loan etc. are customer actions.

Onstage ActionsOnstage actions happens when the banks employees does interaction with the customers for the

sake of delivering the service. In this case when the employees are taking money from

customers or verifying check signs these are onstage actions.

Backstage ActionsBackstage actions are the internal actions that are not visible to the customers, like, taking

customers money to the vault or updating account information etc.

Support ServicesThe internal line of interaction separates the contact employees from the support services.

These are all the activities carried out by individuals and units within the company who are not

contact employees. These activities need to happen in order for the service to be delivered. Such

as the Electronic token machine for DBBL and Vault security.

Servicescape

The banking has gathered momentum with the economic growth in Bangladesh. Banking has

now become more competitive in terms of service delivery and spectrum of products.

Servicescape is an emerging area where banks are trying to equate themselves with their western

counterparts. DBBL has designed its servicescape based on the variation of the geographical

market segment. Their Banani branch is designed with the concept of sophistication where as its

Dilkusha branch is designed with the concept of conveniences.

Following weve discussed the servicescape type and dimensions;

Facilitator:

DBBL servicescape is designed to enhance the efficient flow of activities in the bank making it

easier for both the customers and employees to facilitate daily operations.


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Service usages

1. Remote services: DBBL offers remote services tob the customers who live far away frombank facilities or are busy with their regular job. By this services cutomers canget their

job by mobile banking or e-banking.

2. Self-services: DBBL offers customer ATM booths from where they can easily draw theirmoney. DBBL also keep drop boxes and vending machine inside the bank.

3. Interpersonal services: DBBL pay attention to the needs of both customers andemployees. The physical evidences and social interaction of DBBL is very good which

attract both customer and employee very much.

Environmental dimension:

1. Ambient Conditions: The ambient condition includes dimensions like temperature, noiseetc. The temperature of DBBL is very comfortable. There are no noise which can make

customer bother. The interior and exterior design of DBBL is very attractive DBBL has

large parking lot for both employee and customer.

2. Spatial layout functionality: the DBBL branch of Banani has enough space in the waitinglobby with a black comfortable sofa. But other branches have no such space to wait forrush hours.

3. Signs, Symbols and Articrafts: the logo of DBBL is hanging everywhere inside the bankand ads are also appearing in the wall. The logo is also appearing on their checkbook and

bank brochures.


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Measuring Service Quality Using SERVQUAL

We have derived an weighted gap score for measuring the SERVQUAL survey. Weighting

depends upon how you allocate 100 points among the five SERVQUAL categories. A modified

use of the questionnaire is to limit it to just the total or average Perception score. This is calledSERVPERV and is used when Expectations are likely to be all the same (typically high).

Weights can be applied here as well. Here we have first obtained the score for each of the 22

expectation questions. Next, obtain a core for each of the perception questions. Calculate the Gap

Score each of the statements (Gap Score = PerceptionExpectation).

The SERVQUAL Instruments- Expectations:

Tangibles

1. DBBL has modern looking equipment. 4

2. DBBLs physical facilities are visually appealing. 3

3. DBBLs reception desk employees are neat appearing. 4

4. Materials associated with the service (such as pamphlets or statements)

are visually appealing at DBBL. 3

Average Tangibles SERVQUAL score 3.5

Reliability

5. When DBBL promises to do something by a certain time, it does so. 3

6. When you have a problem, DBBL shows a sincere interest in solving it. 3

7. DBBL performs the service right the first time. 2

8. DBBL provides its service at the time it promises to do so. 3

Average Responsiveness SERVQUAL score 2.75

Responsiveness

10. Employees in DBBL tell you exactly when services will be performed. 3

11. Employees in DBBL give you prompt service. 312. Employees in DBBL are always willing to help you. 3

13. Employees in DBBL are never too busy to respond to your request. 3

Average Responsiveness SERVQUAL score 3


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Assurance

14. The behavior of employees in DBBL instills confidence in you. 3

15. You feel safe in your transactions with DBBL. 416. Employees in DBBL are consistently courteous with the customer. 4

17. Employees in DBBL have the knowledge to answer your questions. 3

Average Assurance SERVQUAL score 3.5

Empathy

18. DBBL gives you individual attention. 3

19. DBBL has operating hours convenient to all its customers. 420. DBBL has employees who give you personal attention. 3

21. DBBL has your best interest at heart. 4

Average Empathy SERVQUAL scores 3.5

CALCULATI ONS TO OBTAI N UNWEI GHTED SERVQUAL SCORE

Average Tangible SERVQUAL score 3.5

Average Reliability SERVQUAL score 2.75


Average Assurance SERVQUAL score 3.5

Average Empathy SERVQUAL score 3.5

TOTAL 16.25

AVERAGE (= Total / 5) UNWEIGHTED SERVQUAL SCORE 3.25


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The SERVQUAL Instruments- Perceptions:

Tangibles

1. DBBL has modern looking equipment. 5

2. DBBLs physical facilities are visually appealing. 4

3. DBBLs reception desk employees are neat appearing. 4

4. Materials associated with the service (such as pamphlets or statements)

are visually appealing at DBBL. 5

Average Tangibles SERVQUAL score 4.5

0

0.5

1

1.5

2

2.5

3

3.5

4

Average Tangible

SERVQUAL score

Average Reliability

SERVQUAL score

Average

Responsiveness

SERVQUAL score

Average Assurance

SERVQUAL score

Average Empathy

SERVQUAL score

Average SERVQUAL Score (Expectation)


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Reliability

5. When DBBL promises to do something by a certain time, it does so. 5

6. When you have a problem, DBBL shows a sincere interest in solving it. 5

7. DBBL performs the service right the first time. 5

8. DBBL provides its service at the time it promises to do so. 5


Responsiveness

10. Employees in DBBL tell you exactly when services will be performed. 4

11. Employees in DBBL give you prompt service. 5

12. Employees in DBBL are always willing to help you. 4

13. Employees in DBBL are never too busy to respond to your request. 4


Assurance

14. The behavior of employees in DBBL instills confidence in you. 4

15. You feel safe in your transactions with DBBL. 4

16. Employees in DBBL are consistently courteous with the customer. 4

17. Employees in DBBL have the knowledge to answer your questions. 4

Average Assurance SERVQUAL score 4


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Empathy

18. DBBL gives you individual attention. 5

19. DBBL has operating hours convenient to all its customers. 5

20. DBBL has employees who give you personal attention. 4

21. DBBL has your best interest at heart. 5

Average Empathy SERVQUAL scores 4.7

CALCULATI ONS TO OBTAI N UNWEI GHTED SERVQUAL SCORE

Average Tangible SERVQUAL score 4.5

Average Reliability SERVQUAL score 5


Average Assurance SERVQUAL score 4

Average Empathy SERVQUAL score 4.75

TOTAL 22.5

AVERAGE (= Total / 5) UNWEIGHTED SERVQUAL SCORE 4.5

TOTAL WEIGHTED GAP (PERCEPTION-EXPECTATION) = 4.5 3.25 = 1.25


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Service Recovery of DBBL:

After our visit to the bank we identified some failures in the service of DBBL. And as a

conscious customer we send a complaint letter to their vigilance cell by email. In our letter to theDutch Bangla Bank Limited, we mentioned several problems that we faced as being the

customers of the DBBL.

Image: Screenshot of our complaint letter.

1stof all in our letter the complaint that has been 1 st raised is that, there are numerousnumbers of branches and ATM booth of DBBL, but when we have to use those booth, we

didnt get the proper services at all, as for an example, the Fast Track of DBBL, most of

the ATM booth remains out of services. So, what are the reasons to establish thousands

of booths without any output from those?


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From that context, we have suggested the DBBL, to emphasize on updating thenetworking of the existing booth rather than opening new booth and to put more value on

advertising.

Second complaint was also regarding the ATM booth services of DBBL. DBBL says thatthey provide at least 100 tk cash from the booth which is should be a great services for

the customers, but it is a matter of great regret that, real scenario is totally different. This

services doesnt really exist in reality as most of the time the booth of DBBL is out of

supply of 100 taka note, so we couldnt withdraw 100taka if needed, rather we have to

withdraw more though you want to withdraw only 100taka from the booth.

From that context, we suggested the DBBL in our letter to provide more 100taka note inthe booth as the customers are in a bulk amount compare to the supply of money in a

thousand available both here and there.

Third complaint in our letter is that, according to our perception the brand value of DBBLis less compare to the brand value of other commercial bank like Brac bank, United

Commercial bank etc. The policy of DBBL to advertise themselves by creating more and

more ATM booth rather than advertising more visibly to the people like to give

sponsorship to different events and tv ads.

To recover the matter, we suggested them to put more emphasize on tv advertising togive sponsorship to different events to promote themselves.

Fourth complaint in our letter to the Dutch bangle bank Ltd. About their M banking.When BKash is a far more superior choice to the people right now, the Mbanking is a

flop though they 1st started this system to our country. As a 1

st mover it is a huge

disappointment for them.

To recovery the matter, we suggested them to totally change the system, for instanceMbanking only focuses on to send the money to the villages, where Bkash focuses on

sending money to different perspective of people.

There are a few problems more of DBBL that comes in front of our eyes, but we stick to abovethese four major issues.


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Responses from DBBL:

It is needed to mention that, we gave our formal letter via mail to DBBL, and we were totally

surprised that, they gave a feedback to our mail. And after their responses, we were totally

surprised after hearing from that. We thought they really didnt care about our concerns, but they

really did.

In their feedback the authority of DBBL has been really polite and brief and very cordial.

To our 1stcomplaint, they responded that by giving thank to us for our concerns and they told us

that they are working on it. They also informed us that, it will take longer time to fulfill the

matter in a proper way.

To our 2nd

complaint, they told us that, it is not an easy task to manage to 100tk note available

for all the customers as the account holders of DBBL for using ATM booth is a large in numbers.

To our third complaint, they totally denied the fact that their brand value is less than other

commercial bank of Bangladesh. Rather they informed us that, they assisted the people who are

the victim of the recent Tornado that attacked in Brahmanbaria. They also sponsored the 3rd

golf

tournament recently. Apart from that, DBBL held a plastic surgery operation program to the acid

victim women.

To our last complaint, they told us that, they are the 1stmover on the electronic banking system

and they will retain the system as per the company policy and they are really hopeful that in the

long term they are going to bounce back with their strategies.

..

report on dutch bangla bank

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