GJRA - GLOBAL JOURNAL FOR RESEARCH ANALYSIS X 60 Volume-5, Issue-5, May - 2016 • ISSN No 2277 - 8160 IF : 3.62 | IC Value 70.36 Commerce Commerce A Comparative Study on The Customer Perception on The Value Being Delivered by The Public and Private Sector Banks Based on Redefined Marketing Mix Mr. Manoj. D. Puthukulangara Research Scholar, R & D Centre, Bharathiar University, Coimbatore, India-641046 Dr. R. Moses Daniel ResearchSupervisor,R & D Centre, Bharathiar University, Coimbatore, India-641046 Ever since the independence the Indian banking sector has taken a pivotal role in ensuring the financial stability and growth of various sectors as well as the in the economic growth of the nation.. The introduction of Liberalization, Privatization and Globalization of Indian economy by early 1990’s was yet another major step in bringing revolutionary changes in the banking sector. It is in this context the strategies introduced by banks are more important in creating a better VALUE feel among the customers and thus to ensure profitability. The redefined marketing mix or the SAVE model which is more customer centric is the basis of this study. Here a study is carried out to have a detailed understanding on the customer perception of various marketing strategies initiated in the banking sector to create a better value to the customers. ABSTRACT KEYWORDS : VALUE,Customer satisfaction, Customer loyalty. Research Paper Introduction Value perception on banking The relevance of globalization is growing at an even faster pace. So as to keep up the competition companies do not have any other op- tion left but to think globally and to grow beyond their geographical boundaries. The companies are becoming global and multinational companies are growing in numbers. Though the main focus on in- ternationalization efforts and the identification and the expansion of global strategies are mainly on the manufacturing companies. The rapid growth of the service sector and its emerging role in many countries in compensating trade deficits along with its growing in- ternationalization, service companies have turn out to be more and more important. (McLauglin & Fitzsimmons, 1996). As India being an emerging economy studies have revealed that emerging economies are more rapidly undergoing the growth in terms of the adoption of a free market system (Hoskisson et al., 2000). India one of the fastest growing economy currently are witnessing a more rapid change in bringing new trends and innovations of a free market system. There always lies an exchange of complex and intangible in- formation between a bank and its customers. This nature of it complexity has always been a challenge for the customers in identifying the value of services delivered by their bank (Ashton & Pressey, 2004). Even after this complexity of its nature the customer happens to be the central point in budding a successful marketing strategy. Market- ing strategies are very important which need to be drafted keeping in mind the customer behavior and environment. Due to many rea- sons and apprehensions like financial burdens, risk of failure etc many banks are still following the traditional way of functioning which can create only less Value feel in the minds of customers. ii Review of Literature (Roig et al., 2006; Ferguson & Hlavinka, 2007) Now a days the commercial banks are more keen in taking a customer centric ap- proach aimed at improving the relationship level with its customers and simultaneously placing new product offerings, organising rela- tionship banking structures, etc does not seems to have the expected results among the customers). Flint et al. (2002) states that the experience gained by the cus- tomers by using the products as well the various external envi- ronment aspects along with the internal aspects of organization have got an influence in the value perceived by the customer. Schmitz and Modlich, (2008). Is of the opinion for a firms long term survival, they will have to alter their focus form price and need to fo- cus on delivery of real Value. Khalifa (2004) According to him the perceived customer val- ue definitions can be grouped into three main divisions such as benefits or cost ratio models (utilitarian), value components models and ultimately means ends models. Oliver (1999) Loyalty is a commitment and desire from the buyer’s side to keep a rapport and a dedication to opt for the product/service repeatedly. iii Problem definition Thrissur and Ernakulam are almost takes the central part of the state of KERALA. From the table below its clear that in both Deposits and Operating profits except the SBI the public sector banks are trailing behind the New private sector banks which started functioning only by the 1990’s where as all the public sector banks where in the mar- ket well ahead than their private/New generation banks. Si NO: NAME OF BANK Deposits (Crores) Operating Profit (Crores) Public Sector Banks 1 SBI 13,94,408.50 32,109.24 2 UCO BANK 1,99,533.55 4,940.40 3 ORIENTAL BANK OF COMMERCE 1,93,488.96 4,155.49 4 Indian Overseas Bank 2,27,976.09 3,997.24 NEW GENERATION PRIVATE SECTOR BANKS 5 HDFC BANK 3,67,337.48 14,360.08 6 AXIS Bank 2,80,944.56 11,456.08 7 ICICI Bank 3,31,913.66 16,594.57 8 KOTAK BANK 59,072.33 2,577.15 Figure 5 Commercial banking latest ranking Business today Jan 2015 The rankings by business today for the year 2014 clearly show the ef- ficiency of the various banks in India. HDFC Bank was on top followed by other new generation banks. IV Objective of the study 1) To compare the customer’s value perception on the various prod- ucts and services offered by public and private sector banks in Ernakulam and Thrissur Districts in Kerala.