Market Research About Citibank Essay
At present, Citibank Philippines Is the largest foreign commercial bank in terms of customers, assets, venue and domestic branches. The Citibank Philippines consistently ranks among the top five commercial banks in terms of profitability, and top ten in terms of assets, deposits, and loans. The company provides corporate banking, treasury, transactional banking, consumer banking and Trust services. In spite of being a foreign bank, 99% of Citibank Philippines’ employees are Filipinos and has more than 1. Million credit cardholders. The researchers came up with the study regarding the customer satisfaction of Citibank credit card holders because on one circumstances while the roof are conducting research on the background of the company, the researchers visited a blob of one of the cardholders of the bank in the internet expressing his (the customer) disappointments and anger towards Citibank. At some point, the customer even said that Citibank is the worst bank with a worst customer service.
This catches the attention of the researchers because for someone to call something worst Is a different story. The sources are Indicated In the reference and appendix. Banking services had made a great impact that played a vital role on the lives of many people today and
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I Mercury Drug Citibank Card I I The card that lets the customer enjoy the most rebates on every purchase at Mercury Drug and accredited hospitals I Citibank Gold Card I I The card that gives customer the most rewarding shopping experience and the only card customer will ever need for everything in life. I Table : List of Citibank Credit Cards Description I Russian’s Citibank Card I I The country’s first and only luxury shopping card that gives the customer ultimate lifestyle privileges. I Shell Citibank Card I I The card that lets customer get the most rebates on fuel, toll and auto shops.
I Citibank Platinum Epistemological Citibank Card I I The card that lets customer enjoy benefits fit for lifestyle with high credit limit, worldwide acceptance and exclusive travel and lifestyle privileges around the world. I Citibank Rewards Carination Classic Card I I The card that gives customer the most rewarding shopping experience and the only card customer will ever need for everything in life. I Citibank Cash Back Card I I The credit card that provides customer with the most savings at all supermarkets and other everyday purchases.
I Citibank Savings Catbird (ATM card) Citibank Savings Sciatica offers no transaction fees at over 6,500 Bayonet, Angelina and Expresses Tams in the country with high daily ATM withdrawal limit, can withdraw U. S. Dollars from a U. S. Dollar account at any Citibank Savings ATM and easily Access money at over 860,000 Tams worldwide. Citibank Savings Sciatica also offers Cashless shopping with Bayonet Point-of-Sale System in over 200 establishments in the Philippines. Citibank Debit Card Citibank Debit Card brings banking convenience locally and globally.
From cash withdrawals to daily purchases and bill payments, all the customer need is a Citibank Debit Card and experience exclusive lifestyle privileges that can be purchase with the card. SERVICES: Deposit Services Citibank Philippine offers different types of Savings Accounts or Checking Accounts to their customers plus customers can also go for special Online Peso Savings Account. The Bank also offers some Term Deposits. Investment Services Citibank Philippine offers advisory services which help customers in assessing their investment objective properly.
Customers can choose from a wide range of Citibank financial products. The bank also helps customers in getting a clear idea about the risk and returns associated with different investment products. Lending Services Citibank Philippine offers special Line of Credit for their customers which involve low rate of interest. Customers receive loan statement on a monthly basis. Citibank Philippines Wealth Management Team helps the customers in managing their assets. Customers can choose from some innovative product solutions.
Remittance Services Customers can receive remittances through Citibank Philippine Account or through Citibank Money Card in a fast and easy way. PLACE Citibank Philippines is the Philippines subsidiary of Citibank which has its banking operations in over 100 nations and territories across the world. The bank has a large network of over 1,400 branches out of which, more than half are located in the United States. Citibank Philippines has 6 branches of Citibank N. A (National Association) all over the nation, namely at Maxima, Greenville, Alibis, Bambino, Alabama, and Zebu; and 22 branches for Citibank Savings.
Citibank Savings Bank allows a customer to open an account with less amount compared to Citibank AN which requires KICK or even bigger amount to open a savings account. PROMOTION Citibank Philippines uses various promotions to increase membership of Cardholders like: 0% Palliate and pay later promo The 0% Palliate Pay Later is a promotion wherein the first month amortization of the 0% Palliate transaction, shall be billed on the 3rd statement cycle from the date of sale. The 0% Palliate Pay Later is available for 3, 6, and 12 months tenors.
Applicable only to Citibank Credit Cardholders and pays for items selected via 0% Plainclothesmen plan. Best Dining Deals 50% off at selected restaurant store when you use Citibank Credit Card. Applicable for groups with a minimum of 4 diners and only one credit card per table may be used. SMS Libeling Appliances Raw-Raw Every Pl , Purchases from SMS Appliance Center entitles a cardholder a raffle coupon when you use their Citibank Credit Card. Fill out the raffle coupon with requirements needed and drop it at the designated drop box located inside the store.
There is still lot of promos that Citibank offers and this 3 above are examples of the promos that the bank has. However, this promotion only has a designated lapse of date where you can purchase. When the promotion date has elapsed, then the promos are no longer valid. Online Advertisement Citibank Philippines has own website and faceable page where you can see the latest news and updates regarding their products and services. Other websites also contains news regarding Citibank Philippines Ad that might help the Citibank’s promotion. . 3 Statement of the problem This study aims to focus on the quality service that Citibank Philippines is offering to its cardholders and on how well the Citibank does in the industry so far. The researchers aim to find answers on the following questions: 1 . ) What are the profile of the respondents in terms of age, occupation, gender, education attainment and marital status? 2. ) Are the customers satisfied with Citibank’s services and promos offered? 3. ) How do Citibank process a complaint from a customer? Room the card holders? 5. ) Are the customers satisfied with the Citibank’s services in availing the credit card, paying credit card fees, using the credit card, and renewing the credit card? 6. ) How to improve the current services of Citibank? 1. 4 Management Decision Problem Even though Citibank is one of the most well-known banks with many branches and subsidiaries around the world, Citibank Philippines faces complaints and problems from cardholders regarding the company’s customer service.
One customer even posted on his blob about his experience regarding Citibank Philippines credit card services and even called the bank as the “worst bank” with a worst customer service. This catches the attention of the researchers because for someone to call something “worst” is a different story. And not Just that, from the fan page of Citibank in casebook up to forums and blobs in the internet the company’s name is receiving negative feedbacks, comments from the banks cardholders and it takes long to process before employees make actions to a certain problem of a customer.
So the researchers also aim to find an answer on how Citibank handle complaints from a customer regarding the said issues and why do Citibank receives many negative feedbacks and comments. Citibank are not “customer focus” when it comes to handling the need of the customers because some are complaining that Citibank has poor quality service, and sometimes the customer’s needs are not met with proper actions. How will Citibank resolve this problem? Will they be able to handle the customers properly?
Citibank employees must act accordingly with professionalism if they want continual improvement for the organization and they should put first the needs of their customer above anything else. Also, the negative comments and feedbacks from the customers of Citibank who had already experienced their “poor quality service” leaves a bad impact to the company and they find hard to get the trust of their customers back as there are more competing banking services nationwide. Despite of receiving many complaints from the consumers, Citibank Philippines still has many users of credit card.
The researchers think it’s because of promos that are offered to the customers such as discounts in different stores in the Philippines. Also, by using your Citibank Platinum Visa Card, you can enjoy discounts outside the country like in Korea, Bali, Bangkok, and many more. Each credit card that Citibank offers has different privileges that the consumers can enjoy. 1. 5 Marketing Objectives The marketing objectives of the study is to find answers and a clear vision of the level of satisfaction among Citibank current credit card holders and why does Citibank
Philippines receives many negative feedbacks and also to identify the areas of satisfaction and dissatisfaction with the customer services. 1. 6 Definition of Terms The researchers will state terms that are might not familiar with the readers. In order for the readers to understand more this study, the researchers will provide a list of terms that can be useful. Satisfaction- Pleasure or contentment derived from such gratification. Customer Satisfaction- Meeting the expectations of the customers.
Liker Scale- a psychometric scale commonly involved in research that employs questionnaires. It is the most widely used approach to scaling responses in or more accurately the Liker-type scale, even though the two are not synonymous. Service- A type of economic activity that is intangible, is not stored and does not result in ownership. A service is consumed at the point of sale. Services are one of the two key components of economics, the other being goods. Assets- Any item of economic value owned by an individual or corporation, especially that which could be converted to cash.
In accounting, Asset is the entries on a balance sheet showing all properties, both tangible and intangible, and claims against others that may be applied to cover the liabilities of a person or business. Assets can include cash, stock, inventories, property rights, and goodwill. Corporate Banking- Financing (often unsecured), cash management, and other banking services custom-tailored for corporations. Debit- An accounting entry that results in either an increase in assets or a decrease in liabilities on a company’s balance sheet or in your bank account.
Financial crisis- is applied broadly to a variety of situations in which some financial assets suddenly lose a large part of their nominal value. Foreign Branch- means any office or place of business located outside the country and its territories. International Banking- International banking is the process in which financial institutions allow foreign clients—both companies and individuals—to use their services. Innovation- the development of new customer value through solutions that meet new needs, inarticulate needs, or old customer and market needs in value adding new ways.
Investment- putting money into something with the expectation of gain, usually over a longer term. Loan- Written or oral agreement for a temporary transfer of a property (usually cash) from its owner (the lender) to a borrower who remises to return it according to the terms of the agreement, usually with interest for its use. Online banking- allows customers off financial institution to conduct financial transactions on a secure website operated by the institution, which can be a retail or virtual bank, credit union or building society. It may include of any transactions related to online usage.
Profitability- The state or condition of yielding a financial profit or gain. It is often measured by price to earnings ratio. Revenues- The amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. It is the “top line” or “gross income” figure from which costs are subtracted to determine net income. Subsidiary- is a company that is completely or partly owned and partly or wholly controlled by another company that owns more than half of the subsidiary’s stock CHAPTER 2 Related Secondary Data 2. Industry In the Philippines, there are currently 23 commercial banks, 84 thrift banks, 711 rural banks, 44 credit unions and 12 non-banks with quasi-banking functions, all licensed with the Bangkok Central Eng Philippians. In 2004, the banking sector grew by 8. 3%, its fastest growth rate in the last seven years. The sector’s growth explains most of the impressive growth of the financial services sector of 8. 4% in 2004. In the past two years, banks expanded by an average of 7. 5%, a recovery from the sluggish average the profitability of Philippines’ banks remains inferior and lags behind other Asian banks.
Considering the foregoing, it may be argued therefore that while the sector posted positive growth rates, much remains to be done to strengthen the banks. On 2012, there were 5 international banks that were close down in the Philippines. Those were American Express Bank, Societies General, Union Bank of California N. A. , First International Bank and Forties Bank. This proves that the Philippine banking industry has a tough competition because five of the largest banks in the world didn’t succeed in the Philippine banking industry and there are many banking services company that stay strongly competitive through the years.
As of 2012, the assets of many banks dropped and only the top 4 banks in the Philippines were remained strong in the market. Even though some the top banks decreased their assets, they still manage to go on top place. BAD who tops the charts for two consecutive years is really impressive in terms of their assets. BAD remains a strong banking service despite of many big competitors. Metronome, who was a former top banking service in the country, has been improving the company’s promos to stay strongly competitive and tries to reclaim the top spot again.
BPI also competes with the top two. BPI has the most number of branches and ATM in the Philippines. The most number of branches is one of the competitive advantages that alarm the other banking services. Sources: Country Report (2012), Philippines: Monetary Sweet Spot For BSP Emerging Markets Monitor; Volvo. 18 Issue 14, polo-10, Engrave, R. 2012) Philippines Country Monitor; , up-3, 2/up Walsh, E. (2011) Financial services representational Services Industry Report: Philippines; , Issue 2, up-11, *The sources can be found on the reference 2. Direct/lenience Competitors Direct Competitors The main direct competitors of Citibank are those companies which are in the same industry of Citibank which is the finance and insurance industry that also offers credit card services to customers. HASH The Honking and Shanghai Banking Corporation (HASH) limited one of the world’s largest banking and financial services organizations, the HASH Group has been doing equines in the Philippines for over 132 years where they currently employ over 8,000 people.
HASH began operating in the Philippines in November 1875, in Bambino and now, they currently have seven main bank branches in the Philippines. Http:// en. Wisped. Org/wick/Weightlessness SCUP United Coconut Planters Bank (SCUP) one of the largest banks in the Philippines ranking within the top twenty banks in the Philippines in terms of assets. The bank is also heavily involved in social development projects and other charity works. Today, SCUP is one of the largest Philippine banks, with 212 branches and 215 Tams nationwide. Http://www. Scup. Com/SCUP_History. HP RCA Racial Commercial Banking Corporation (RCA) is one of the most dynamic banking institutions in the country, driven to push for the top by the relentless energy of our aggressive and vibrant workforce. A strong sales and service culture enlivens the environment of the Bank, as we strive to take banking to the level of relationship, Bank of the Philippine Island (BPI) is the oldest bank in the Philippines still in operation and is the country’s third largest bank in terms of assets, the country’s largest bank in terms of market capitalization, and the country’s most profitable bank.
BPI also pioneered rural banking in the Philippines, as a countryside banking operations preceded that of many other banks’ rural banking operations by many years. Http://en. Wisped. Org/wick/Bank_of_the_Philippine_lagans Metronome The Metropolitan Bank and Trust Company commonly known as Metronome, as of 2008, is the largest bank in the Philippines in terms of assets and is also the largest Philippine bank in terms of overseas presence. In August 1963, the banks first branch was established in Divisor.
Four years later, Metronome opened its Dave branch, the banks first provincial branch. Http://en. Waspishness. Rag/index. PH? Title=Metronome *The sources can be found of the reference Indirect Competitors The indirect competitors of Citibank Philippines are those companies that offer other financing instruments and lending institutions (like pawnshops, loans, insurance, etc. ) Gubernatorial Pawnshop Superciliousness’s pawn brokering, money remittance, insurance, bills payment, collections, and e-loading services. Http://gubernatorial. Mom/about-us-history PHILAE Life Philippine American Life and General Insurance Company is an insurance company based in the Philippines. It is currently the largest life insurance company in the Philippines in terms of assets, net worth, investment and paid-up capital. Http:// en. Wisped. Org/wick/Philippine_American_Life_and_General_Insurance_Company Sun Life Financial Sun Life Financial, through the member company, Sun Life of Canada (Philippines), Inc. , offers individual life insurance products to fit the customers’ lifestyle.
Sun Life Financial offer financial security for the individual and for the whole family. Sun Life Financial has been helping meet the demands of these changing times through these products. Http://www. Sunrise. Com. PH/Philippines/About+us/Sun+Life+Financial Insular Life Assurance Company Insular Life Assurance Company is the first and the largest Filipino life insurance company. Established on November 25, 1910, has been providing financial security to generations of Filipinos for the last 95 years of unbroken service.
Insular Life Assurance Company’s pioneering ventures include the introduction of group insurance, industrial life insurance, and the direct marketing of life insurance in the country. Http://www. Insufferable. Com. PH/about-us/our-beginnings/ Generalissimos Life Assurance Generalissimos Life Assurance offers life and non-life insurance services. The company was founded in 1999 and is based in Maxima, Philippines. Generalissimos Life Assurance Co. , Inc operates as a subsidiary of Generalissimos Holding Co. Inc. *The sources can be found on the reference 2. Environmental Factors (PEST) Political-Legal The political factors in putting up a banking institution are the Government regulations and policies that impact the business environment. This includes the tax policy wherein everyone is liable to tax once a person started working. Also, the unstable political situation in the country will result in capital flight, companies or individuals deposits money abroad not on the local banking system. The more money deposited abroad the less taxes paid. Economic In the Economy, once the price of raw materials and other necessities (like oil, supply of food, etc. Increase, the price of commodity will also increase that might affect the banking industries because customers need to tighten their budgets due to the increase in prices, so the effect will be less deposits volume will happened that can slow down the cash inflow in banks. Socio-cultural Most Filipino families have savings accounts in banks for safety reasons and to easily eave money without the threat of being robbed. Also, Filipinos have this habit of borrowing money on credit then paying the credit when people already help out the personal needs, that’s why there are a lot of credit card holders in the country.
Technological One of the technological innovations that Citibank and other banking industries have is the so called “online banking” wherein the products and services offered is accessible to anyone who needs it through the use of internet and is convenient because the customer doesn’t necessarily need to go to the bank Just to make transactions but instead, the consumer can do it at home. Also, technologies have evolved through time having much more updated computers and other equipments used in banking transactions. Sources: http://www. Trademark. Com/economy/Philippines/economic-risk-in- Philippines-229. PH http://Journals. PDP. Dude. PH/index. PH/Mr./article/viewable/ 2092/2019 *The sources can be found on the reference 2. 4 SOOT Analysts Strengths: * Strong brand name with strong advertising and brand visibility risks due to huge and varying customer * Good promotions Weaknesses: * Poor customer service * Few bank branches Opportunity: * Expansion of bank branches in the Philippines Threats * Having low * Financial crisis in U. S might happen again that may cause Citibank to shut down 3. 1 Type of Marketing Research The researchers used Quantitative type of marketing research in the process of collecting data from the respondents.
Quantitative market research because the researchers conduct surveys and questionnaire directly to the respondent and through internet also by the use of online survey. Although it is time-consuming and expensive, the data gathered is accurately reliable. Also, Quantitative research involves a large number of respondents. 3. 2 Design The researchers used the descriptive type of research to be able to answer the statement of the problem that was given and specifically, the descriptive research can specify the research problem the questions who, what, where and why.
The descriptive research determined the level of satisfaction of the consumers of the Citibank Philippines credit card by the survey that was conducted. The respondents would be the current card holders of the bank. 3. 3 Methodology The researchers used the descriptive research method. The researchers collected a data by survey. The researchers have 100 respondents of Citibank Philippines reedit card users. The target respondents of the researchers are 50 female and 50 male, ages 18 and above, and an employee. The researchers conducted online survey and written questionnaire on the current holders on Citibank credit card.
The written questionnaire was distributed at the Bambino and Maxima Citibank Philippines branches. The online survey was been sent thru emails and thru social networking sites for a fast collection of data. The researchers used primary and secondary type of research. The survey aims to find the customer satisfactory level of different consumers. The river also aims to answer some of the questions in the statement of the problem. 3. 4 Scope and Delimitation The scope for the researchers study is for Citibank Philippines under the Citreous Incorporation in Bambino Manila and Loyal Maxima branches.
The study focuses on the level of customer satisfaction of Citibank Philippines. The researchers will gather information from the 50 females and males, 18 and above, either students or working from Citibank credit card holders in Bambino Manila and Loyal Maxima branch in the Philippines. The researchers will find out if the consumers are satisfied, neutral or unsatisfied with Citibank’s services in availing credit card, paying credit card fees, using the credit card, and renewing the credit card.
The study of the researchers focuses on the perspective, opinions, reaction and interest of the Citibank Philippines’ users of credit cards. 3. 5 Data Collection Process The researchers first looked for the primary data that needed the most like the definition of terms that are not that familiar to the other respondents. In order for the researchers to get the data, the researchers looked for the sources that are related to the study, then after that, the group directly searched for some Citibank reedit card holders to asked some questions that are directly related to the study.
The researchers even asked the respondents for some outside information that can even searched for some secondary data that can also help the group in order for the study to come up good. 3. 6 Statistical Treatment The researchers used tables to tabulate the results of the survey to interpret the results. In order for the researchers to find answers on the problem statement, the researchers conducted surveys on the credit card holders of Citibank Philippines specifically in Manila area to know the level of satisfaction the customer get from the reedit card services of the company.