November 08, 2013 Vice Chancellor World University of Bangladesh Dhanmondi, Dhaka-1205 Subject: Prayer of permission to prepare and

submit Thesis paper.

Dear Sir, I would like to inform you that I am a Student of MBA program major in Marketing of your university. I have successfully completed all the courses included in my MBA program. Now I would like to prepare Thesis paper on: An Analysis of Customer Satisfaction level on Islami Bank Bangladesh Limited under the supervision of Mr. Syed Ahmed Tajuddin, Lecturer, Business Administration, World University of Bangladesh. So, I therefore pray and hope that you would be kind enough to permit me to prepare the thesis paper on the mention topic and oblige thereby.

Yours Sincerely .. Rakibul Hasan Roll: 1192 Reg. No: WUB 04/12/42/1192 Batch: 42nd Major: Marketing Program: MBA World University of University

Topic
An Analysis of Customer Satisfaction Level On Islami Bank Bangladesh Limited

Introduction Now-a days banking sector is modernizing and expanding its hand in different financial events every day. At the same time the banking process is becoming faster, easier and is becoming wider. In order to survive in the competitive field of the banking sector all organizations are looking for better service opportunities to provide their fellow clients. So it has become essential for every person to have some idea on the bank and banking procedure. This report is mainly emphasis on Customer service quality in Islami Bank Bangladesh Limited. Financial services are a difficult business, subject to many pressures. The regulatory environment, risk and capital management, reporting and compliance are all major issues demanding the attention of board and executive alike. On top of this there is still a business to run, with customers to be won or retained, costs to be managed and shareholder value to be created, all in an increasingly dynamic and international environment, where failure on any of these counts can swiftly lead to the attention of predators, both domestic and international. On the revenue side growth in customer numbers, customer retention, share of wallet, and cross sale ratio are all key metrics. While on the cost side the variables are around staff numbers, branch numbers, the range and variety of channels to the customer and the location of transaction processing, as off shoring develops as a means to both manage cost and, in some cases, improve customer service. This Thesis paper is an integral part of every student course curricula and the gaining of his practical training. It ensures the practical knowledge on a specific matter, which is assigned to the students by their respective teachers or otherwise known as supervisor. Practical training is very essential to achieve complete knowledge about banking sector. So, this report is prepared based on Two (60days) Months Practical working experience on IBBL, Local office Branch. During training period practical working experience gathered from different department. But during training period working area is mainly in cash section, account opening, Spot Cash & Remittance & different customer service of IBBL, local office branch. Based on these practical working experiences it tried to prepare this report. The title of report is An Analysis of Customer Satisfaction level on Islami Bank Bangladesh Limited. This report is approved by the Supervisor of Department of Business Administration, World University of Bangladesh.

Rationale and Scope of the study The scope of this report is limited to the overall description of the company, its services and its position in the industry and its marketing strategies. The scope of the study is limited to organizational setup, functions and performances. The report only covers the services offered by Local Office branch of Islami Bank Bangladesh Limited. Consequently no comparative information with any conventional or Islamic banks as well as with other branches of Islami Bank Bangladesh Limited will not available here. This report is help to find out the customer satisfaction level of IBBL, Local Office Branch. After study this it may be helpful for the students, Bank employees & stakeholders of the bank. From this report any one can learn & have some idea about the customer satisfaction level & the current customer service status of IBBL local office branch.

Objectives of the Study General objective: The general objective of this report is to find out the customer satisfaction level of Islami Bank Bangladesh Limited.

Specific objectives: a. b. c. d. e. To have an overview of the Islamic banking system of Bangladesh. To know the customer opinions over IBBL products and services. To determine the customer satisfaction level over Local Office branch, IBBL. To identify the problem of customer service of IBBL To give necessary recommendations by analyzing the operation of IBBL, local Office branch for further improvement of its customer service.

Methodology This report is a Quantitative research mainly based on the primary data. The Major concern was to make sure that the respondent is educated enough to understand the survey questionnaire. While analyzing the data, no complex multivariate analysis has been conducted here. The purpose of the study is to find out the customer satisfaction level of IBBL. Also find out the problems of customer service and probable solution in terms to improvements of customer service.

Sources of Data: The report is based on both primary and secondary sources of data. The sources of data are as followsPrimary Sources: The primary data had been collected from various sources. The different sources were: a. Face to face conversation with the employees. b. By personal interviewing and interacting customers at IBBL. c. Observing various organizational procedures. Secondary Sources: Secondary data sources are: a. b. c. d. Company website Annual report of IBBL. Published Manager Conference of IBBL. Various published documents.

Data Collecting Technique: Fort the purpose of the study two methods of techniques used: Observation Interview with Questionnaire

Observation: Observation method is often used to complete this quantitative research because it is very difficult to provide any specific example from any file about certain document, as the matter is very sensitive for the client as well as for the bank. Interview with Questionnaire Face to face personal interviewing and interacting customers is an easy way to collect the accurate information for any study. For this purpose, customers were asked to fill up a structured questionnaire. And, this was the major source of primary data

Target population The target population of the study is the existing customer of IBBL Local office Branch. Sampling Unit Only one Branch of IBBL would be the sampling unit for the study, i.e. the Local office branch of Islami Bank Bangladesh limited. Sample Size The sample size of the study is 20 customer of IBBL Local Office Branch. Sampling Technique Judgmental Random sampling technique used to select the respondents of the questionnaire. Data Analysis Technique There are various tools for data analysis. Among them SPSS (Statistical Package for Social Science) is the most popular one. For this study SPSS 10 was used to analyze the collected data.

TABLE OF CONTENT
Chapter : 01 1.0 1.1 1.2 1.3 Introduction Rationale & Scope of the study Objective of the study Methodology Chapter : 02 Organizational Overview Chapter:03 Theoretical Overview 3.0 3.1 3.2 3.3 3.4 Definition of customer Satisfaction Customer Relationship Management Benefits of Customer Relationship Management Service Quality Determinates of the customer satisfaction level Chapter: 4 Analysis Recommendation & Conclusion Bibliography Appendix Page Number

Time Table for Completing Thesis Paper

to accomplish the particular task with the following time following time frame under Supervision of Mr. Syed Ahmed Tajuddin, Lecturer, WUB. Approximate length of the proposed study will be three (03) Months. The breakdown of different activities along with allocated time are given below & it would be tried the level best

Different Part of Thesis Paper

Duration (weeks)

Submission of Full Proposal Date of Information Collection Data Analysis Findings & Possible Recommendations from Analysis Report Writing & Illustration Amendments, Revisions & Presentation Total

02Week 02 Week 02 week 02 Week 02 Week 02 Week 12 Weeks

Bibliography
1. Islami Bank Bangladesh Ltd. website: http://www.islamibankbd.com/ 2. Islamic Banking in Bangladesh: Achievements & Challenges by Abdul Awal Sarker, Published on 2009. 3. Islamic Banking in Bangladesh: Performance, Problems & Prospects by Md. Abdul Awal Sarker- International Journal of Islamic Financial services Vol. 1 No.3. 4. Ahmad, A.U.F (2001). Problems of Islamic banking in Bangladesh- paper presented to the Islamic Economics Research Bureau, Dhaka, Bangladesh. 5. Annual Report of IBBL, 2011-2012. 6. The Quarterly Journal of Islamic Economics Research Bureau Vol.20, No. 01, ISSN-0256 8586, January-March-2010. 7. Marketing Research- An Applied Orientation. By- Naresh K.Malhotra (4th Edition). 8. Marketing Management- E.F McQuarrie, Volume-3, Spring 1995 9. Principle of Marketing. By Philip Kotler, Edition- 13th 10. Paper survey on customer satisfaction Research. By- The Service Edge, Volume-3, March 1995. 11. Islamic Economics, Banking and finance in the 21st century: selected issues in curriculum/Human capital development. By- Mohamed Aslam Haneef. (Vol.20)

Survey Questionnaire
(This survey is conducting for evaluate the Efficiency of customer service & its Future Improvement of Islamic Bank Bangladesh Limited. Please Read the following carefully & fill up the following information)

Part-01
(A)Age : (1) 18-20 (1) Male (2) 21-30 (3) 31-40 (4) Above 40

(B) Gender:

(2) Female (3) Student (4) Retired Person (5) Others

(C) Occupation: (1) Service (2) Business

(D) Monthly Income: (1) Below 5,000 (2) 6,000 to 20,000 (3) 21,000 to 40,000 (4) 41,000 to 50,000 (5) Above 50,000 (E) Year of Involvement with Islami Bank Bangladesh Limited: (1) Less than 1 year (2) 1-5 Years (3) 6-10 Years (4) More than 10 years

(F) Service that are being Taken from IBBL: (1) MSS (2) MTDR (3) MSA (4) Investment (5) Others

(G) Involvement with other Bank: (1) Pure Interest Based (2) Other Islamic Bank (3) Both

(H) Are you aware about the Punishment of dealing interest in Islam? (1) Yes (2) No (I) Are you encouraging others to do transactions with IBBL? (1) Yes (J) Reason of taking service from IBBL: (1) Run according to Islami Shariah (3) Due to Higher Profit (2) No

(2) Near to Home / Work place (4) Others

(K) Are you interested to joining a workshop arrange by IBBL clarifying the difference between Islamic Finance and Interest based finance
(1) Yes (2) No

Part-02
Please give your opinion about various aspects of service provided by IBBL Local Office Branch Motijheel C/A, Dhaka-1000.

Various aspects of services

Strongly Satisfied (1)

Satisfied (2)

Neutral (3)

Dissatisfied Strongly (4) Dissatisfied (5)

Speed & Efficiency of counter Service Speed & Efficiency of Transaction Quality of Online Service Convenience of ATM both Location Level of co-operation of the employee Level of efficiency of the employee Efficiency of the management Comfort level of internal environment of the branch Amount if service charge Convenience of the location of the branch

1
1 1 1 1 1 1 1 1 1

2
2 2 2 2 2 2 2 2 2

3
3 3 3 3 3 3 3 3 3

4
4 4 4 4 4 4 4 4 4

5
5 5 5 5 5 5 5 5 5

Any other Recommendation for the IBBL customer service & its future Improvement: ........................................................................................................ ............................................................................................................................................................ ............................................................................................................................................................ ....................................................................................................................

Discussion of the Questionnaire

While constructing the questionnaire, the following points are considered as the assumption on which is the foundation of the analysis is laid upon. As an Islamic bank , the service of IBBL is mainly two types- providing Shariah compliant financial solution - Informing people about the differentiating attributes of Islamic finance as it is completely unique in nature in comparison with conventional banks. The demographic information was taken to have an idea about the diversity of customer groups who are taking service from IBBL. In include gender, age, profession, monthly income. If the customer is taking service from IBBL for quite a long time, their opinion is more valuable. The nature of service He/she is taking from IBBL reflects his or her relationship with IBBL. The nature of the other bank with which customer has affiliation, reflects his or her level if condemnation towards interest. The reason of taking service from the IBBL depicts both the psychology of the customer and service quality of IBBL. Knowledge about the punishment of dealing with interest in Islam reflects his or her attachment towards Islamic values. It is also true that this assumption may not be true in a lot of cases. The customers are the mouthpiece of any organization. The tiny, simple experience of one customer may influence a lot in a tremendous manner. How the customers are becoming confirmed that IBBL complying with the Shariah shows their level of concern about Shariah compliant issues. If he/she has knowledge about the profile of the members of the Shariah board then it means they are more concern about this than ordinary people. WORD of MOUTH is considered to be the most effective marketing tool. If a customer encourages his/her family, peers and other surrounding people to transact with a specific bank, the customer base of the will increase within a very short span of time. So this point was tried to figure out whether the customers of IBBL act in this manner or not. The various aspects of service about which the comment of respondents were being taken, have been selected considering IBBL as both a financial and Islamic Institution. So at one side, asked about the level of Shariah compliance, on the other side it was also asked about the location of Branch and ATM both. Last but not the least; it is a practical thing that the customers may not be interested to be delved into complex economic and financial issues which are related with the difference between Islamic and conventional banks. So it was asked to the customer whether they are interested in joining workshop or view exchanging programs if arranged by IBBL where such things will be discussed.

Chapter: 03
Theoretical Overview
Customer satisfaction Customer satisfaction a term frequently used in marketing is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals. "Within organizations, customer satisfaction ratings can have powerful effects. They focus employees on the importance of fulfilling customers expectations. Furthermore, when these ratings dip, they warn of problems that can affect sales and profitability. When a brand has loyal customers, it gains positive word-of-mouth marketing, which is both free and highly effective. Many strategies exist, but overlooking the fundaments of how to measure customer satisfaction can be detrimental to any business. Customer satisfaction can be measure by overall customer satisfaction, loyalty of customer about the company, attribute of customer & by measure the repurchase percentage of the customer. Customer satisfaction level can be measure with the following scale. By using this scale of measurement organization can easily find out about this current customer satisfaction level status. Strongly Satisfied 1 Satisfied 2 Neutral 3 Dissatisfied 4 Strongly Dissatisfied 5

In researching customer satisfaction, firms generally ask customers whether their product or service has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When customers have high expectations they always want to take best service from the company. If the service level is differ from customer expectations customer are dissatisfied with the company. On the other hand if customer service is same or exceeds the customer expectations customer are satisfied or sometime strongly satisfied with the company and company can easily retain these types of customer also customer became the positive word of mouth for the company.

Customer Relationship Management CRM is the abbreviation for customer relationship management. It entails all aspects of interaction that a company has with its customer, whether it is sales or service-related. After summarized CRM following things will be found

Understand the customer Retain customers through better customer experience Attract new customer Win new clients and contracts Increase profitably Decrease customer management costs

Now most important is to know the definition of customer relationship management. Customer relationship management is a widely-implemented strategy for managing a companys interactions with customers, clients and sales prospects. The overall goals are to find, attract and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments.

Benefits of Customer Relationship Management The use of a Customer Relationship Management system will confer several advantages to a company. The benefits of CRM are given belowa) b) c) d) e) Help to improve customer service quality & its efficiency Help to attracts new customer & retain existing customer Help to minimize the cost Help to increase the profitability Help company in decision making process

Service Quality Service quality is an achievement in customer service. It reflects at each service encounter. Customers form service expectations from past experiences, word of mouth and advertisement. In general, Customers compare perceived service with expected service in which if the former falls short of the latter the customers are disappointed. Customer service quality can be improved by developing a customer service-quality information system. The primary test of a service-quality information system is the extent to which it informs and guides service-improvement decision making.

Another important test is the extent to which the system motivates both managerial and no managerial employees to improve service. There are five guidelines for developing a system that can meet these tests: a. b. c. d. e. Measure service expectations Emphasize information quality Capture customers words Link service performance to business results Reach every employee

Determinates of the Customers Satisfaction Level The determinates of customer satisfaction level are as followsa) b) c) d) e) f) g) Speed & efficiency of customer service Level of co-operation of customer service provider Quality of the customer service provider Location of the customer service center Comfort level Internal environment of the customer service center Amount of service charge taken compare with the competitor Records of Customer involvements with company