Improving customer satisfaction toward retail banking service quality at vietcombank bac ha noi branch

ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANH - NGUYỄN THỊ HỒNG LÊ IMPROVING CUSTOMER SATISFACTION TOWARD RETAIL BANKING SERVICE QUALITY AT VIETCOMBANK BAC HA NOI BRANCH NÂNG CAO SỰ HÀI LÒNG CỦA KHÁCH HÀNG ĐỐI VỚI DỊCH VỤ NGÂN HÀNG BÁN LẺ TẠI CHI NHÁNH VIETCOMBANK BẮC HÀ NỘI LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2022 ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANH - NGUYỄN THỊ HỒNG LÊ IMPROVING CUSTOMER SATISFACTION TOWARD RETAIL BANKING SERVICE QUALITY AT VIETCOMBANK BAC HA NOI BRANCH NÂNG CAO SỰ HÀI LÒNG CỦA KHÁCH HÀNG ĐỐI VỚI DỊCH VỤ NGÂN HÀNG BÁN LẺ TẠI CHI NHÁNH VIETCOMBANK BẮC HÀ NỘI Chuyên ngành: Quản trị kinh doanh Mã số: 8340101.01 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS NGUYỄN XUÂN HUYNH HÀ NỘI - 2022 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article The other’s research result and documentation (extraction, table, figure, formula,and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration ACKNOWLEDGEMENT I have gained huge knowledge, skill and insights from my MBA course The course raises my capacity of administration and management up to the next level I am now very confident in my position of management I would like to extend my sincerest thanks and appreciation to all those who have made this Thesis to be possible I woud like to express my great gratitude to my supervisor Nguyen Xuan Huynh for his useful comments, remarks and engagement during my process of doing this master’s thesis I would also like to thank the leaders, colleagues and customers at Vietcombank – Bac Ha Noi Branch for supporting me throughout the research process Sincere thanks are extended to the Hanoi school business and management Vietnam National University, Hanoi for equipping me with huge knowledge and skills through various interesting and practical subjects I also would like to thanks my classmates for their friendship and reciprocal encouragement to make our class time to be unforgettable time Lastly, I would like to give my great thanks to my husband, my kids, and my family who always standby me during the past two years and encourages me to keep moving from the beginning of my study Improving customer satisfaction towards retail banking services at Vietcombank – Bac Ha Noi Branch Summary of the results Customer satisfaction is the operating motto and a vital factor for every bank nowadays Along with the increasingly fierce competition in the business environment, it becomes more and more necessary to learn about customer needs and the factors affecting customer satisfaction Therefore, the research "Improving customer satisfaction towards retail banking services at Vietcombank - Bac Ha Noi Branch" would be useful in formulating and developing policies and strategies of Vietcombank in general and Vietcombank - Bac Ha Noi Branch in particular The study achieved the research objectives set at the beginning The study also showed that the BANKSERV model and the theoretical model of factors affecting customer satisfaction were developed and applied in Europe, but could completely be applicable in Vietnam, specifically at Vietcombank - Bac Ha Noi Branch In the study, the results showed that the scales had high reliability and the exploratory factor analysis showed that all the factors included in the study satisfied the conditions to conduct the analysis Through the regression model, all factors were statistically significant and explained the customer satisfaction variable Therefore, the customer satisfaction towards retail banking services at Vietcombank - Bac Ha Noi Branch was affected by the five factors: employee conduct, reliability, tangibles, service accessibility and responsiveness, in which the reliability factor had the greatest impact with the coefficient β = 0.403 In addition, the four factors: employee conduct, tangibles, service accessibility and responsiveness also had a certain impact on customer satisfaction Applicability in practice The research results of the thesis have the ability to apply in practical management activities at the branch because the obtained results were based on objective data and analysis, reflecting the real situation of retail banking service quality at the branch Further research orientations First, the study adopted the BANKSERV model instead of the SERVPERF model like previous studies with the aiming to approach and study the service quality in the retail banking sector, thereby proposing better solutions to help consolidate and improve customer satisfaction Second, the study was conducted to evaluate customer satisfaction towards retail banking services at Vietcombank - Bac Ha Noi Branch in the period 2018-2020, which was new in both research time and space TABLE OF CONTENT TABLE OF CONTENT i LIST OF TABLES i LIST OF FIRGURES ii INTRODUCTION CHAPTER 1: THEORETICAL FRAMEWORK ON CUSTOMER SATISFACTION TOWARDS RETAIL BANKING SERVICES AT COMMERCIAL BANKS 1.1 Retail banking services 1.1.1 Concepts 1.1.2 Characteristics of retail banking services .7 1.1.3 Types of retail banking services .9 1.1.4 Role of retail banking services .11 1.2 Customer satisfaction towards retail banking services 12 1.2.1 Concept 12 1.2.2 Research models related to customer satisfaction towards retail banking services 14 1.2.3 Proposed research model and research hypothesis .18 CHAPTER 2: RESEARCH METHODS 21 2.1 Research process 21 2.2 Research Methods 22 2.2.1 Preliminary research 22 2.2.2 Formal research 24 2.3 Sample designing 24 2.3.1 Sampling method 24 2.3.2 Sample size 24 2.4 Methods of data collection 25 2.5 Methods of data analysis 25 CHAPTER 3: CUSTOMER SATISFACTION TOWARDS RETAIL BANKING SERVICES AT VIETCOMBANK – BAC HA NOI BRANCH 29 3.1 Overview of Vietcombank – Bac Ha Noi branch 29 3.1.1 History of foundation and development .29 3.1.2 Organizational structure .29 3.1.3 Business results 30 3.2 Business of retail banking services at Vietcombank – Bac Ha Noi branch 36 3.2.1 Retail capital mobilization 36 3.2.2 Retail credit services 38 3.2.3 Payment services 39 3.2.4 E-banking services 42 3.2.5 Other retail banking services 44 3.3 Research results on customer satisfaction towards retail banking services at Vietcombank – Bac Ha Noi branch .45 3.3.1 Characteristics of survey respondents 45 3.3.2 Analysis of the scale reliability 47 3.3.3 Results of Exploratory Factor Analysis (EFA) 49 3.3.4 Results of regression analysis .50 3.3.5 Results of the suitability of the model 53 3.3.6 Survey results of customer satisfaction 54 3.4 Overall assessments of customer satisfaction towards retail banking services at Vietcombank - Bac Ha Noi Branch .61 CHAPTER 4: SOLUTIONS TO IMPROVE CUSTOMER SATISFACTION TOWARDS RETAIL BANKING SERVICES AT VIETCOMBANK - BAC HA NOI BRANCH 64 4.1 Orientation and objectives of retail banking services at Vietcombank - Bac Ha Noi Branch 64 4.1.1 Business orientation of retail banking services at Vietcombank 64 4.1.2 Business orientation of retail banking services at Vietcombank - Bac Ha Noi Branch 64 4.1.3 Business objectives of retail banking services at Vietcombank – Bac Ha Noi branch 66 4.2 Some solutions to improve customer satisfaction towards retail banking services at Vietcombank - Bac Ha Noi Branch .67 4.2.1 Solutions to reliability 67 4.2.2 Solutions to tangibles 68 4.2.3 Solutions to service accessibility 70 4.2.4 Solutions to responsiveness 71 4.2.5 Solutions to employee conduct .73 CONCLUSION 75 REFERENCES 77 APPENDICES LIST OF TABLES Table 2.1: Interview questions to experts 23 Table 3.1: Results of capital mobilization activities of Vietcombank – Bac Ha Noi Branch 31 Table 3.2: Lending activities at Vietcombank – Bac Ha Noi Branch 33 Table 3.3: Financial activities at Vietcombank – Bac Ha Noi Branch 35 Table 3.4: Results at of retail capital mobilization at Vietcombank – Bac Ha Noi Branch 37 Table 3.5: Results of retail credit services at Vietcombank – Bac Ha Noi Branch 38 Table 3.6: Domestic payment and international payment services at Vietcombank – Bac Ha Noi Branch 39 Table 3.7: Card services at Vietcombank – Bac Ha Noi Branch 41 Table 3.8: E-banking services at Vietcombank - Bac Ha Noi Branch 42 Table 3.9: Other banking services at Vietcombank – Bac Ha Noi Branch 44 Table 3.10: Characteristics of survey respondents 45 Table 3.11: Reliability of the scale 48 Table 3.12: Reliability of the scale 49 Table 3.13: Regression analysis results 51 Table 3.14: Results of Reliability 54 Table 3.15: Results of responsiveness 55 Table 3.16: Results of employee conduct 57 Table 3.17: Results of service accessibility 58 Table 3.18: Results of tangibles 59 Table 3.19: Results of customer satisfaction 60 Table 3.20: Overall assessment of customer satisfaction towards retail banking services of Vietcombank - Bac Ha Noi Branch 61 i 14 Reynold & Philip (2015), Retail banking services strategy: a Model of tradional, electronic anh Mixed Distribution choices, Journal of Scientific and Research Publications, Volume 2, Issue 4, April 2012 ISSN 2250-3153 15 Tiwan, Rajnish & Buse, Stephan (2015), The German banking sector: Competition, consolidation anh contenment, International Journal of Service Industry Management 16 Hirtle, B J., and Stiroh, K.J., (2007), The Return to Retail and the Performance of U.S Banks, Journal of Banking and Finance, 31, 1101-1133 17 Terrence Levesque and Gordon H.G McDougall (1996), Current Research situation and development overview of product innovation based on lean six Sigma, Sichuan University 18 Philip Kotler (2000), Quản trị marketing dịch vụ, Nhà xuất Thống Kê 19 Oliver (1999), Whence customer loyalty? Journal of Marketing, 63, 33–44 http://dx.doi.org/10.2307/1252099 20 Zineldin (2000), Total Relationship Management (TRM) and Total Quality Management (TQM) Managerial Auditing Journal, 15, 20-28 21 Levesque and McDougall (1996), The illusion of consumer satisfaction, Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, 2, pp 8-43 22 Meanwhile, Oliva et al (1995), A measure of emotional empathy Journal of Personality, 40(4), 525-543 doi:10.1111/j.1467-6494.1972.tb00078.x 23 Churchill Peter (1993), Tevelopment of a customer sastisfaction index model: An application to the Turkish mobile phone sector, Industrial management & data systems, pp 627 24 Cronin Jr, J J., & Taylor, S A., (1992), SERVPERF versus SERVQUAL: reconciling performance-based and perceptions-minus-expectations measurement of service quality The Journal of Marketing, 125-131 25 Avkiran, N K., (1994), Developing an Instrument to Measure Customer Service Quality in Branch Banking, International Journal of Bank Marketing 12(6), 1018 78 APPENDICES Appendix 01: Survey questionnaire Dear Customers, I am currently conducting a study entitled “Improving customer satisfaction towards retail banking services at Vietcombank – Bac Ha Noi Branch” Please take a moment of your precious time to answer the following questions for us All of your responses and comments will be very helpful in my research I look forward to receiving your support I promise that the information collected from this form will be used for research purposes only Sincerely yours I Information about respondents Please fill in the information below: Full name (optional): ………………… Male Age: 36-45 45 University Income: 20 million dong Address (optional): ………………… Postgraduate 10-15 million dong Phone number (optional): ……………… II Survey content on factors affecting customer satisfaction towards retail banking service quality To answer the questions, please tick the options with a score scale from to In which: Strongly disagree Disagree Neutral Agree Strongly agree Code TN TN1 TN2 TN3 TN4 DU DU1 DU2 DU3 DU4 DU5 NV NV1 NV2 NV3 NV4 TC TC1 TC2 Survey questions Reliability The bank performs the services as committed to the customers The bank provides services at the time it has promised The bank conducts right-first-time transactions The bank’s mistakes, if any, are often detected early and are corrected quickly Responsiveness The bank provides customers with all information about the services to be performed The bank always responds actively to the requirements of customers The bank provides the right services that customers need The bank always shows its readiness to support customers in any situation The bank regularly adds new services and utilities for customers Employee conduct The bank staff understand each customer's specific needs The bank staff spend a lot of time chatting to customers to better understand the customers’ needs and desires Score 5 5 The bank staff are always polite and courteous in the process of interacting with customers The bank staff have high reliability and good professional ethics Service accessibility The bank has a wide transaction network, which is convenient for customers The bank’s transaction time and location are convenient and flexible for customers TC3 TC4 HH HH1 HH2 HH3 HH4 HH5 CL CL1 CL2 CL3 CL4 The bank is constantly adding new utilities, services and technology to help customers get access to its services anytime and anywhere The bank always cares about customers' opinions to constantly improve its services Tangibles The staff uniform shows formality The bank's forms and leaflets are eyecatching and attractive The bank has modern equipment, machinery and technology The bank’s arrangement of transaction counters, tables and document shelves is reasonable and convenient for customers The interface of the main website and ebanking application is easy to see and easy to operate Customer satisfaction towards retail banking services You are completely satisfied with the retail banking services of the bank You absolutely will continue to use the bank’s retail banking services in the future You will recommend the bank’s retail banking services to your friends and relatives You are willing to wait to use the bank's retail banking services without any complaints 5 III Do you have any recoomendations to improve the bank’s service quality in the coming time? ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… ……………………………………………………………………………… Thank you very much for your help! Appendix 02: Results of data ananysis Gender Frequency Percent Valid Percent Male Valid Female Total 45 Total 185 144 329 56.2 43.8 100.0 Cumulative Percent 56.2 56.2 43.8 100.0 100.0 Age Frequency Percent Valid Percent Cumulative Percent 38 11.6 11.6 11.6 113 34.3 34.3 45.9 97 29.5 29.5 75.4 81 24.6 24.6 100.0 329 100.0 100.0 Education Frequency Percent Valid Percent Intermediate College Valid University Postgraduate Total 47 193 75 14 329 14.3 58.7 22.8 4.3 100.0 14.3 58.7 22.8 4.3 100.0 Cumulative Percent 14.3 72.9 95.7 100.0 Job Frequency Percent Valid Percent Cumulative Percent Valid Office worker 139 42.2 42.2 42.2 Civil servant Retiree Others Total 66 20.1 20.1 62.3 64 60 329 19.5 18.2 100.0 19.5 18.2 100.0 81.8 100.0 Income Frequency Percent Valid Percent 20 million dong Total Cumulative Percent 15 4.6 4.6 4.6 93 28.3 28.3 32.8 148 45.0 45.0 77.8 52 15.8 15.8 93.6 21 6.4 6.4 100.0 329 100.0 100.0 Reliability Statistics Cronbach's N of Items Alpha 869 Scale Mean if Item Deleted TN1 TN2 10.64 10.74 Item-Total Statistics Scale Corrected Cronbach's Variance if Item-Total Alpha if Item Item Deleted Correlation Deleted 7.969 704 839 8.502 718 834 TN3 TN4 10.30 10.40 7.717 8.376 743 723 823 832 Reliability Statistics Cronbach's N of Items Alpha 850 Scale Mean if Item Deleted DU1 DU2 DU3 DU4 DU5 13.78 13.75 14.17 13.92 13.95 Item-Total Statistics Scale Corrected Cronbach's Variance if Item-Total Alpha if Item Item Deleted Correlation Deleted 10.155 604 834 10.238 590 838 10.085 685 813 9.955 667 817 9.272 760 791 Reliability Statistics Cronbach's N of Items Alpha 862 Scale Mean if Item Deleted NV1 NV2 NV3 NV4 10.67 10.44 10.75 10.87 Item-Total Statistics Scale Corrected Cronbach's Variance if Item-Total Alpha if Item Item Deleted Correlation Deleted 7.434 652 846 6.509 778 793 7.279 681 835 7.002 725 817 Reliability Statistics Cronbach's N of Items Alpha 836 Scale Mean if Item Deleted TC1 TC2 TC3 TC4 11.06 10.84 10.60 10.87 Item-Total Statistics Scale Corrected Cronbach's Variance if Item-Total Alpha if Item Item Deleted Correlation Deleted 6.082 624 812 5.570 670 792 5.345 750 755 5.874 629 810 Reliability Statistics Cronbach's N of Items Alpha 837 Scale Mean if Item Deleted HH1 HH2 HH3 HH4 HH5 14.60 14.45 14.70 14.71 14.97 Item-Total Statistics Scale Corrected Cronbach's Variance if Item-Total Alpha if Item Item Deleted Correlation Deleted 8.643 624 808 8.456 665 797 8.522 631 806 8.412 640 804 8.591 632 806 Reliability Statistics Cronbach's N of Items Alpha 817 Scale Mean if Item Deleted CL1 CL2 CL3 CL4 10.40 10.72 10.40 10.67 Item-Total Statistics Scale Corrected Cronbach's Variance if Item-Total Alpha if Item Item Deleted Correlation Deleted 1.966 670 755 1.917 633 772 2.028 618 778 1.934 630 773 KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling 794 Adequacy Approx Chi-Square 3162.089 Bartlett's Test of df 231 Sphericity Sig .000 Total Variance Explained Compo nent Initial Eigenvalues Extraction Sums of Rotation Sums of Squared Loadings Squared Loadings Total % of Cumulat Total % of Cumulat Total % of Cumulat Varianc ive % Varianc ive % Varianc ive % e e e 3.522 16.009 16.009 3.522 16.009 16.009 3.175 14.431 14.431 3.274 14.883 30.893 3.274 14.883 30.893 3.077 13.986 28.417 2.811 12.778 43.671 2.811 12.778 43.671 2.883 13.107 41.523 2.577 11.712 55.383 2.577 11.712 55.383 2.843 12.924 54.447 2.498 11.356 66.739 2.498 11.356 66.739 2.704 12.292 66.739 686 3.119 69.858 632 2.875 72.733 608 2.765 75.497 545 2.477 77.975 10 529 2.404 80.378 11 502 2.281 82.659 12 466 2.116 84.775 13 450 2.044 86.820 14 413 1.876 88.695 15 403 1.831 90.527 16 373 1.696 92.222 17 351 1.594 93.816 18 345 1.570 95.386 19 296 1.344 96.730 20 255 1.161 97.890 21 241 1.095 98.986 22 223 1.014 100.000 Extraction Method: Principal Component Analysis DU5 DU3 DU4 DU1 DU2 HH2 HH4 HH5 HH3 HH1 TN3 TN4 TN2 TN1 NV2 NV4 NV3 NV1 TC3 Rotated Component Matrixa Component 865 813 797 740 728 795 775 772 769 766 859 846 846 831 881 844 820 806 868 TC2 815 TC4 792 TC1 791 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations Model Summaryb Mo R R Adjusted Std Change Statistics Durbindel Squar R Square Error of R Square F df1 df2 Sig F Watson e the Change Chang Change Estimate e a 742 551 544 374 551 79.186 323 000 1.847 a Predictors: (Constant), HH, TN, DU, TC, NV b Dependent Variable: CL ANOVAa df Mean Square Model Sum of Squares Regression 55.373 Residual 45.174 323 Total 100.547 328 a Dependent Variable: CL b Predictors: (Constant), HH, TN, DU, TC, NV Model (Con stant) Unstandardiz Standa ed rdized Coefficients Coeffi cients B Std Beta Error 136 185 11.075 140 Coefficientsa t Sig 95.0% Confidence Interval for B F 79.186 Correlations Sig .000b Collinearit y Statistics Lower Upper Zero- Parti Part Tole VIF Bound Bound order al ranc e 734 464 -.228 500 TN 231 022 403 DU 166 025 254 NV 158 024 252 TC 207 026 296 HH 223 028 305 a Dependent Variable: CL 10.7 01 6.75 6.66 7.87 8.08 000 189 273 463 512 399 980 000 118 215 280 352 252 987 000 111 205 290 348 249 976 000 156 259 373 401 294 983 000 169 278 361 410 301 977 1.02 1.01 1.02 1.01 1.02 TN1 TN2 TN3 TN4 TN DU1 DU2 DU3 DU4 DU5 DU NV1 Descriptive Statistics N Minimu Maximu Mean Std m m Deviation 329 3.39 1.151 329 3.29 1.029 329 3.73 1.162 329 3.63 1.049 329 3.50 966 329 3.61 994 329 3.64 993 329 3.22 926 329 3.47 969 329 3.44 1.011 329 3.46 844 329 3.57 1.001 NV2 NV3 NV4 NV TC1 TC2 TC3 TC4 TC HH1 HH2 HH3 HH4 HH5 HH CL1 CL2 CL3 CL4 CL Valid (listwise) 329 329 329 329 329 329 329 329 329 329 329 329 329 329 329 329 329 329 329 329 N 329 1 1 1 1 1 1 1 1 1 1 5 5 5 5 5 5 5 5 5 5 3.81 3.50 3.37 3.60 3.40 3.61 3.86 3.59 3.66 3.76 3.91 3.66 3.64 3.39 3.68 3.67 3.35 3.66 3.39 3.67 1.084 1.006 1.026 881 895 981 968 943 792 908 909 927 943 911 756 544 586 545 580 554 ... towards retail banking services at Vietcombank – Bac Ha Noi Branch Chapter 4: Solutions to improve customer satisfaction towards retail banking services at Vietcombank - Bac Ha Noi Branch CHAPTER 1:... of retail banking services at Vietcombank – Bac Ha Noi branch 66 4.2 Some solutions to improve customer satisfaction towards retail banking services at Vietcombank - Bac Ha Noi Branch. .. What is the current status of retail banking business at Vietcombank - Bac Ha Noi Branch? (2) What factors affect the satisfaction of customers using retail banking services at Vietcombank - Bac