The public sector commercial banks are again divided into three groups – the State Bank group, other nationalized banks and the regional rural banks.
As competition in the Indian banking sector has increased due to deregulation and dilution of government ownership in PSBs, opening up of the banking sector to the private banks and foreign banks, competition has intensified. The banking sector is no more limited to accepting deposits from the public and giving out to loans to public. They now provide innovative service with innovative style. ATMs, credit cards and internet banking have changed the way banks offer services. Banks have added other services such as bankassurances, money transfers, and NRI services (Mittal & Mittal, 2009)
The marketing of services is different from marketing of products because services are intangible, heterogeneous, perishable and inseparable. Services cannot be patented, displayed or communicated (Zeithami & Bitner, 2000). Customer satisfaction in the services industry depends on employees’ actions (Douglas & Connor, 2003). How the service is delivered and how the service delivery process is perceived, holds importance in services marketing. The physical evidence in the service setting is extremely important, as according to Kotler, the place where service is bought is one of the most significant features (Hightower, Brady and Baker, 2002). Hence, intangible cues like the physical environment, the design, the landscape, the surroundings, the layout, the décor and the parking facilities – all create an impression on the five senses and determine how the service is perceived (Brunswick, n.d). In a bank setting, these act as interaction facilitator, thereby increasing performance. Thus, in services marketing the 4 Ps extend to seven Ps to include people, process and the physical evidence. When the service exceeds customer expectations,