TQM PROJECT

SERVICE QUALITY OF HDFC Life

BY GROUP-1:
Abhishek Deogharia
Aditiya Chauhan
Bhadrinath T S
Rajarshi Mukherjee
Shishir Rana
 OBJECTIVE
The objective of this project is to study the service quality of HDFC Life, find out their service gaps and
recommend ways of improvement to bridge this gap. The focus is on SERVQUAL to analyse the quality of
services provided by HDFC Life, based on what is popularly known as RATER metrics- Reliability, Assurance,
Tangibles, Empathy, Responsiveness.
 METHODOLOGY
 Firstly, we had to identify the gaps in perception and expectation among the customers of HDFC Life.
This was done through a survey by floating two questionnaires- one for perception, the other or
expectation.
 The sample size of the survey is 60 each for expectations and perceptions.
 After the collection of data, the internal consistency of the data was checked through the Cronbach
Alpha test.
 Next we have tried to find out the gap in perception and expectation, by conducting the Paired t-
test for each question framed in both the questionnaires. We have ranked each attribute based on
which their gap size.
 Lastly, we conducted factor analysis to cluster various attributes into one. This is to reduce the
number of attributes and simply the overall equation using a few “factors”.
 Survey Questions
PERCEPTION EXPECTATION

RELIABILITY RELIABILITY

Do you expect the employees of HDFC life to finish a task on time, as Did you expect the employees of HDFC life finish a task on time, as
promised to you? promised to you?

Do you expect the staff of HDFC Life to be sympathetic and reassuring Did you expect the staff of HDFC Life to be sympathetic and reassuring
towards your problems and issues? towards your problems and issues?

Can we depend on them when the task is to be done? Could we depend on them when the task is to be done?

ASSURANCE ASSURANCE

Can you rely on the work done by the employees of HDFC Life that Could you rely on the work done by the employees of HDFC Life that
feel safe with all your documents/data privacy/personally identifiable feel safe with all your documents/data privacy/personally identifiable
information (PII) held in their hands? information (PII) held in their hands?
Do you expect the employees of the HDFC Life polite through all Did you expect the employees of the HDFC Life polite through all
channels of communication – phone, email, in-person wherever you channels of communication – phone, email, in-person wherever you
meet them? meet them?
 Survey Questions
PERCEPTION EXPECTATION
TANGIBLES TANGIBLES
Do you expect the branches of HDFC Life fully equipped with the latest Did you expect the branches of HDFC Life fully equipped with the
facilities as required by you? latest facilities as required by you?
Do you expect physical facilities of HDFC life like sitting arrangement, Did you expect physical facilities of HDFC life like sitting
water facilities etc. provided for you? arrangement, water facilities etc. provided for you?
Do you expect staff of HDFC life have a neat physical appearance, as in Did you expect staff of HDFC life have a neat physical appearance, as
the context, one can easily differentiate between employees & non – staff? in the context, one can easily differentiate between employees & non
– staff?
EMPATHY EMPATHY
Do you expect that the company (caring and empathetic nature regarding Did you expect that the company (caring and empathetic nature
claims) gives personal attention such that they leave everything to give regarding claims) gives personal attention such that they leave
their complete attention to your needs? everything to give their complete attention to your needs?
Do you expect that the employees of HDFC Life give personal individual Did you expect that the employees of HDFC Life give personal
attention to your needs? individual attention to your needs?
Do you think that the employees of HDFC Life know what are your needs Did you think that the employees of HDFC Life know what are your
like they understand your predicament even before you forward your needs like they understand your predicament even before you forward
problems to them? your problems to them?
RESPONSIVENESS RESPONSIVENESS
Do you expect staff of HDFC Life provides their services on time, as Did you expect staff of HDFC Life provides their services on time, as
discussed earlier? discussed earlier?
Step 1: Reliability analysis
For Expectations

Case Processing Summary Reliability Statistics

N % Cronbach's
Cases Valid 58 84.1 Alpha Based
Cronbach's
Excluded on N of Items
11 15.9 Alpha
a Standardize
Total 69 100.0 d Items
a. Listwise deletion based on all 0.969 0.969 22
variables in the procedure.

For Expectations, Cronbach's alpha (α) is 0.969, which is greater than 0.9.So it indicates an “Excellent “ level of
internal consistency .
 Reliability Analysis For Perception

Case Processing Summary Reliability Statistics

N % Cronbach's
Cases Valid 60 74.1 Alpha Based
Exclude on
21 25.9
da Cronbach's Standardized
Total 81 100.0 Alpha Items N of Items
a. Listwise deletion based on all .945 .946 22
variables in the procedure.

For Perception, Cronbach's alpha (α) is 0.945, which is greater than 0.9. So it indicates an “Excellent “
level of internal consistency .
Step 2: Pairwise t-test for each question pair : (Referring to Excel)
Hypothesis:

Null: No significant mean difference between the paired samples.

Alternate: There is significant difference the between true mean difference of the paired samples.

Interpretation(from Paired Sample Test table):

The pairs(Expectation and Perception Pair) marked in yellow are significant as their significance ( p
value) < 0.05 ie.we reject null hypothesis. Assuming the level of significance to be 5%=0.05. We found that,
HDFC life customer expectations and perceptions are similar.
 Step 3:Factor Analysis of 4 factors
 For consumer expectation

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling
.888
Adequacy.
Bartlett's Test of Approx. Chi-Square
1240.271
Sphericity
df
231
Sig.
.000

Interpretation: Here the KMO measure of sampling adequacy is coming at 0.888 which is greater than 0.5. So the
result of factor analysis can be considered significant.
Bartlett’s Test of Sphericity significance is coming .000 which is less than .05 that means the null hypothesis (or H0) is not being
accepted and the alternative hypothesis, denoted by Ha is accepted. So doing the factor analysis was right and some of its
variables are correlated.
 Rotated Component Matrix
 Rotated Component Matrix: The rotated component matrix, sometimes referred to as the loadings, is the key output of
principal components analysis. It contains estimates of the correlations between each of the variables and the estimated
components.
Factor
1: Trustworthiness of the company Factor 2: Company deliverable
Expect that the company gives personal attention such Expecting that the employee get adequate support and
that they leave everything to give their complete resources from the company to finish their tasks
Q18 attention to your needs. Q17 effectively.
Can you trust solely on the employees of your insurance
Q14 company Expecting the materials like proper forms, stationery and
Q4 other facilities provided for your ease.
The company always keeps your best interests in mind
before they do some changes in their policies and other
Q7 Depend on the employees when the task is to be done
Q21 facilities
Expect that the employees give personal individual Expect staff to keep the records in a systematic manner
Q19 attention to your needs Q9 such that everything is available at one spot
Rely on the work done by the employees that feel safe Expect the employees of the company polite through all
Q15 with all your documents Q16 channels of communication.

Q12 Staff will be willing to help you such as Service SLA Time Q5 expect to finish a task on time, as promised to you
Expect to receive prompt services from the insurance expect all the services to be provided as the rules on the
Q11 Q8 paper
company office, whenever there is a need
expect the staff to be sympathetic and reassuring towards
Q6 your problems and issues

expect physical facilities like sitting arrangement, water

Q2 facilities etc. provided for you
Factor
3: Appearance and Timely Service
Expect staff have a neat physical appearance so that Factor
one can easily differentiate between employees &non 4: Employee Perception
Q3 – staff

Expect the operating hours and service days to be Do you think that the employees know what are
Q1 convenient for you your needs like they understand your
predicament even before you forward your
expect the operating hours and service days to be Q20 problems to them
Q22 convenient for you

expect staff provides their services on time, as Do you expect that the employees will be too
Q10 discussed earlier Q13 busy to promptly reply to your problems
Factor analysis of 5 factors
For consumer perception

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling
.860
Adequacy.
Bartlett's Test of Approx. Chi-Square 837.76
Sphericity 8
df 231
Sig. .000

Interpretation: Here the KMO measure of sampling adequacy is coming at 0.860 which is greater
than 0.5. So the result of factor analysis can be considered significant.
Bartlett’s Test of Sphericity significance is coming .000 which is less than .05 that means the null
hypothesis (or H0) is not being accepted and the alternative hypothesis, denoted by Ha is accepted. So
doing the factor analysis was right and some of its variables are correlated.
 Rotated Component Matrix
From the total variance table we can see that there are a total of 5 components whose Eigenvalues are grater
than 1.
So from these we have identified 5 factors in the rotated component matrix.

Factor Factor
1 Customer Satisfaction 2 Willingness to help
Were the employees of the company always polite, Did they always have the willingness to help you
during on-call, in-person wherever you met Q12 such as Service SLA Time
Q16 them.(.765) Were the employees provided with adequate help
Did the branch had all the latest facilities as support and resources from the company to finish
Q1 required by you.(.666) Q17 their tasks effectively and efficiently
Were the materials associated with the services like
Were they sympathetic and reassuring towards
proper forms, stationery and other facilities
Q6 your issues and problems.(.640)
Q4 provided to you
Did you find the operating hours and service days Did they keep the records in a systematic manner
Q22 of the company convenient.(.610) Q9 such that everything was available at one spot
Did you receive prompt services from the
insurance company whenever there was a Q8 Did they provide the services as promised by them
Q11 need.(.569) Have they shown dependability when the work was
Did the company keep your best interests in mind Q7 needed to be done
before doing some changes in their policies and Did they know what were your needs such that they
Q21 other facilities.(.527) understood your predicament even before you
Factor
Factor
3 Employee Behavior
4 Trustworthiness of the employees
Did the company portray caring and empathetic
nature regarding claims and gave personal attention Can the employees of your insurance company be
Q18 to your needs Q14 trusted (.858)
Did they keep their words when they provided the
Q10 services Can the employees be trusted i.e. to feel safe with all
Did the employees give their personal individual Q15 their documents/data privacy etc.(.755)
Q19 attention to your needs
Did the staff had a neat physical appearance as in Were the employees too busy to promptly reply to your
the context one can easily differentiate between Q13 problems.(.508)
Q3 employees and non-staff

Factor
5 Company Deliverable

Q5 Have they done the task on time as promised by them

Did the branch provide all the physical facilities like sitting arrangement,
Q2 water facilities, etc
SERVICE QUALITY GAP : (Referring to the excel)
INTERPRETATION: Ranking the variables: Based on hypothesized mean difference
Top 3: Bottom 3:

• Do you expect the materials associated with the services like • Do you think that the employees know what are your needs like they understand your
proper forms, stationery and other facilities provided for your predicament even before you forward your problems to them? -0.26
ease by HDFC Life -0.08
• Do you expect the operating hours and service days of HDFC Life to be convenient for you? -0.23
• Do you expect staff of HDFC will keep the records in the
• Do you expect physical facilities of HDFC Life like sitting arrangement, water facilities etc.
systematic manner such that everything is available at one provided for you? -0.28
spot? -0.06
• Do you expect the materials associated with the services like
proper forms, stationery and other facilities provided for your
ease? -0.08
 Results
 From paired t test, all attributes of HDFC life seems to satisfy the customer as they expectations and perception are similar which is
evident from 2 sample t-test.
 For Expectations, Cronbach's alpha (α) is 0.969, which is greater than 0.9.So it indicates an “Excellent “ level of internal consistency .
 For Perception, Cronbach's alpha (α) is 0.945, which is greater than 0.9. So it indicates an “Excellent “ level of internal consistency .
 From the factor analysis of consumer expectation we have got four factors:
1. Trustworthiness of the company
2. Company deliverables
3. Appearance and timely service.
4. Employee Perception
 From the factor analysis of consumer perception we have got five factors:
1. Customer satisfaction
2. Willingness to help
3. Employee Behavior
4. Trustworthiness of the employees
5. Company deliverables.