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The IUP Journal of Services Marketing
Focus

The current issue deals with varied service settings in India. It contains six research papers which aim at increasing our understanding of customers' perception of service offering and delivery in industries varying from road transportation to life insurance. The range of empirical studies also varies from antecedents of customer relationships to satisfaction with the service delivery.

The first paper in this issue, "Air Deccan: Challenges of Profitable Growth", by Rajat Gera, explores the internal and external managerial issues in attaining profitability in a low cost carrier. The author cautions about long-term sustainable profitability of the carriers, even though significant improvement in the performance indicators has been achieved.

The paper "Dynamics of Retail Markets", by V Krishna Mohan, P Pinakapani and M S R Sesha Giri, is a study on the growing retailing services sector. The authors have elaborated on the threats and opportunities of the organized retail sector in India. The paper also gives a consolidated view of the expansion of retailing in India in terms of retail formats, current and proposed malls, product categories and the expansion in the Tier I and II cities.

The paper "Passenger Satisfaction Towards Karnataka State Road Transport Corporation in Gadag District: An Empirical Study", by A S Shiralashetti and S S Hugar, takes up the public transportation services in Karnataka. This empirical study has analyzed the level of satisfaction of passengers towards various services offered by the KSRTC (Karnataka State Road Transport Corporation).

The paper "Antecedents of Customer Relationships in the Telecommunication Sector: An Empirical Study", by Ramesh Krishnan and Monika Kothari, explores variables that lead customers to enter into a long-term relationship with their telecom service providers. The authors have reported the results of an empirical study of customers' ratings of the Seven Desired Value Added Service (7DVAS). The study also identifies the antecedents constituting enabling set and defense set.

The paper "Customer Preferences in Life Insurance Industry in India", by Sunayna Khurana, identifies customer preferences regarding plans and company, their purpose in buying insurance policies, their satisfaction level and their future plans for the new insurance policy. The author analyzes the problems faced by customers while dealing with insurance companies in India.

The final paper, "Underpinnings of Customer Satisfaction in Indian Cellular Services: Service Quality, Service Features, Demographics and Cellular Usage Variables", by Shirshendu Ganguli, is a timely contribution for enhancing our understanding of customer satisfaction of cellular services. The author has used factor analysis to understand the underpinnings of service quality and features, and has subsequently used these factors for discriminating between satisfied and unsatisfied customers.

- A Srikant Consulting Editor

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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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Services Marketing