(LUẬN văn THẠC sĩ) the determinants of customer satisfaction on banking services , the case of commercial banks in ho chi minh city

Research scope

The investigated objects of this research are just focused on individuals Ho Chi Minh City is selected as research place Moreover, the research is carried out in

LITERATURE REVIEW

Conceps

This section contains the definitions of key concepts related to the research such as customer satisfaction and banking services

Customer satisfaction measures how well a company's products and services meet or exceed customer expectations In today's competitive market, businesses must strive to attract new and potential customers, making customer satisfaction a crucial element of their overall strategy It serves as a key differentiator that can significantly influence a company's success.

Banking services encompass a wide range of products offered by banks, including the safe holding of deposits, facilitating withdrawals, providing mortgage and loan options for individuals and businesses, issuing credit cards, managing credit card transactions, and handling bill payments and both domestic and international remittances.

The determinants of customer satisfaction on banking services: The case of commercial banks in Ho Chi Minh City

Literature review of customer satisfaction

Cardozo may be considered as the first person carried out the study of customer satisfaction In the research on customer effort, expectation, and satisfaction in

In 1965, research revealed that customer satisfaction is significantly influenced by the effort invested in obtaining a product and the expectations tied to it Specifically, customers tend to be more satisfied with a product when they exert considerable effort to acquire it, as opposed to when their efforts are minimal These findings challenge traditional notions of customer convenience and marketing effectiveness Additionally, the study highlighted that satisfaction increases when a product meets or exceeds customer expectations, contrasting with scenarios where expectations are not fulfilled.

Parasuraman, Zeithaml, and Berry (1985 and 1988) introduced the SERVQUAL model, a 22-item scale designed to assess consumer perceptions of service quality across five key dimensions: reliability, tangibles, assurance, responsiveness, and empathy This model was developed based on a survey conducted with 200 consumers aged 25 and older in a major shopping mall in the Southwest United States By analyzing the gap between consumer expectations and actual service perceptions, the researchers effectively measured levels of consumer satisfaction in retail and service industries.

In a 1992 study analyzing 660 questionnaires from customers across four service industries—fast food, pest control, banking, and dry cleaning—Cronin and Taylor examined the relationship between service quality, customer satisfaction, and purchase intentions Their research, conducted in a medium-sized city in the Southeast United States, emphasized measuring service quality based on actual performance rather than comparing customer perceptions and expectations.

Anderson and Sullivan (1993) used the database of a survey with 22,300 customers via telephone from 1989 to 1990 at 57 firms in Sweden in order to determine the

The determinants of customer satisfaction in banking services, particularly among commercial banks in Ho Chi Minh City, highlight the importance of effective customer service and adept complaint resolution Research findings indicate that customer satisfaction is not directly influenced by expectations, suggesting that firms must focus on enhancing service quality to meet customer needs This approach is crucial, as fulfilling customer requirements and ensuring their satisfaction can significantly contribute to the long-term profitability of banks.

Customer satisfaction is a critical focus for marketers across various service industries globally, particularly in retail banking A notable study by Levesque and McDougall in 1996 analyzed customer satisfaction determinants in Canada, utilizing data from 325 usable questionnaires out of 400 distributed Their findings revealed a strong correlation between service issues, the ability to recover from those issues, and overall customer satisfaction Additionally, while product offerings, service features, and quality dimensions also influenced customer satisfaction, their impact was comparatively less significant.

Andaleeb, in his research on the main factors influencing on the satisfaction of

1 patients with the hospitals in the health care service industry at a large city and its suburt in Pennsylvania (northeastern and mid-Atlantic area of the United States) in

In 1998, a study was conducted analyzing data from 130 completed questionnaires out of 390 distributed The questionnaires were collected from patients at four hospitals, comprising two facilities with 100 beds and two with 450 beds.

The researcher employed a probability sampling method and utilized a multiple regression model to test his hypotheses His findings revealed that five key factors significantly influenced patient satisfaction, particularly highlighting the importance of healthcare competence.

Customer satisfaction in banking services, particularly among commercial banks in Ho Chi Minh City, is influenced by several key factors These include the professionalism and demeanor of the staff, the quality of the facilities, effective communication with clients, and the perceived costs associated with banking services Understanding these determinants is essential for enhancing customer experiences and fostering loyalty in the competitive banking sector.

A study by Ribiere et al (1999) in the U.S healthcare sector examined survey data from internal customers, including physicians, pharmacists, nurses, quality department staff, and laboratory technologists The findings highlighted that accuracy, timeliness, and completeness are critical factors influencing customer satisfaction with hospital information systems.

In 1999, Sonne conducted empirical research to identify the key factors influencing customer satisfaction with the consulting services of the Norwegian Institute of Fisheries and Aquaculture Ltd in Tromso, Norway Customers were surveyed using a seven-point Likert scale to assess their perceptions of various aspects of completed projects Through factor analysis of the collected data, the study revealed that the competence of consultants and technical reliability significantly impacted customer satisfaction.

In 2003, Ekinci conducted research in the tourism industry to explore the factors influencing customer satisfaction Utilizing structural equation modeling, the study tested ten different hypotheses, revealing that service quality was the primary determinant of tourist satisfaction.

Meanwhile, Jamal and Naser (2003) undertook a study on the main determinants of

Customer satisfaction in the retail banking industry in Pakistan is significantly influenced by both the core services offered and the customer-employee relationship A study conducted at a branch of the First Women Bank Ltd., analyzing data from 165 completed questionnaires out of 300 distributed, utilized a multivariate regression model to reveal these insights The findings underscore the importance of both contractual elements and relational dynamics in enhancing customer satisfaction within the banking sector.

The study on customer satisfaction in banking services within commercial banks in Ho Chi Minh City reveals that there is no significant relationship between the tangible aspects of the service environment and customer satisfaction.

Eboli and Mazzulla (2007) employed a structural equation model to analyze the factors affecting student satisfaction with bus services in Cosenza, South Italy Their study involved a survey of 763 students to assess their expectations and needs regarding public transportation The findings revealed a significant correlation between various service quality attributes—such as cleanliness, personnel security, information systems, staff helpfulness, bus stop conditions, availability of shelters and benches, overcrowding, and safety—and overall student satisfaction with the bus service.

In 2008, Agarwal developed a model identifying six key factors influencing consumer satisfaction in India's railway services By analyzing a database of 500 respondents from Lucknow City, she assessed consumer satisfaction levels based on their perceptions of the performance quality of these factors.

Overview of commercial banks in Ho Chi Minh City and the present main

The commercial banking system in Ho Chi Minh City comprises three state-owned banks (Agribank, BIDV, MHB), 39 joint-stock banks, including major players like VietinBank, Vietcombank, and Eximbank, as well as five wholly foreign-owned banks such as HSBC and Standard Chartered Additionally, there are five joint-venture banks and over 40 branches of foreign banks, all of which play a crucial role in driving the local economy.

Mobilizing capital and lending are two major activities of commercial banks However, these activities had the tendency of significant decline in the recent years

Between 2005 and 2007, the banking sector significantly enhanced its capital mobilization efforts, attracting both domestic and foreign funds while boosting the economy's savings In 2005, the capital mobilization growth rate was 32.1%, which rose to 36.5% in 2006 By 2007, this growth peaked at approximately 54% However, following this peak, the capital mobilization status of commercial banks experienced a noticeable decline from 2007 onwards.

2009 due to high inflation and the impacts of global economic depression The capital mobilization growth rate decreased to 20% in 2008 and to 10% in 2009 Details are showed in Figure 2.1

Figure 2.1: Capital mobilization status of commercial banks from 2005 to 2009

Source: State Bank of Vietnam (20 1 0)

Commercial banks play a crucial role in boosting investment by providing loans that meet the capital demands of the economy This support enables businesses to stabilize production and invest in technology, including upgrading machinery and equipment, which ultimately enhances the overall production capacity Over the years, the flow of investment capital through credit institutions has been categorized into three distinct periods.

Between 2004 and 2006, the credit growth rate experienced a slight decline but remained robust at over 25% From 2006 to 2007, lending activities surged with an impressive growth rate of around 54% However, in the subsequent period from 2007 to 2009, lending was tightly regulated, resulting in a significant drop to 11.2% by 2009, as illustrated in Figure 2.2.

I The determinants of customer satisfaction on banking services: The case of commercial banks in Ho Chi Minh City

Figure 2.2: Credit operation status of commercial banks from 2004 to 2009

Source: State Bank of Vietnam (2010)

Beside the banking services related to capital mobilization and lending activiti~s, there are still many other services related to cards, treasury, remittance, etc

Banking services are also classified into personal banking services and business banking services Details will be shown obviously in the Appendix 1

Banks continuously innovate and implement new products and services, particularly in the realm of electronic banking This includes modern offerings such as home banking, internet banking, telephone banking, and SMS banking These advanced banking technologies enable seamless online transactions, providing inquiry and payment functionalities for a diverse range of customers, including individuals, businesses, and financial institutions with bank accounts.

Statistically, the banking system had approximately 32 million individual accounts;

By the end of 2010, the number of cards in circulation exceeded 28.5 million, supported by over 11,000 ATMs and nearly 50,000 POS devices The banking industry's payment system is continuously modernizing, focusing on automation and expanding service offerings This technological advancement aims to increase processing speed and promote card payments while reducing cash usage.

Especially, the system of commercial banks has enhanced an important role in administrating monetary policy of the State Bank, from that affecting the economy.

ANALYTICAL FRAMEWORK AND METHODOLOGY

Analytical framework

Customer satisfaction in the banking sector is influenced by various factors, including service problems, service recovery, product offerings, service quality dimensions, traditional facilities, convenience of transactions, employee behavior, and the overall banking environment This paper introduces a model aimed at testing these determinants of customer satisfaction specifically within the context of banking services in Ho Chi Minh City.

It is measured by the Likert scale with five-point (similar to the paper of Jham and Khan, 2008)

- Independent variables: basic facilities, convemence, employee competence (behavior of employees), the environment of bank (similar to the paper of Jham and

Khan, 2008), employee competence (professionality of bank staff) (New) and

Basic banking facilities, including demand drafts, fixed deposits, money transfers, locker services, and ATMs, play a crucial role in customer satisfaction When these traditional services are delivered effectively, they enhance customer contentment; however, poor execution can lead to dissatisfaction Therefore, it is essential to maintain high standards in these fundamental interactions to ensure a positive banking experience.

H1: Basic facilities have positive effect on customer satisfaction with banking services

Convenience in banking refers to the ease of conducting transactions without the need to visit a physical bank, encompassing multichannel options such as debit cards, credit cards, telephone banking, and internet banking When these services are executed effectively, they lead to high customer satisfaction; however, poor performance can result in dissatisfaction Therefore, the following hypothesis is proposed:

H 2: Convenience has positive effect on customer satisfaction with banking services

Employee competence is reflected in the behavior and professionalism of bank staff, making human factors crucial for success in the service industry When bank employees exhibit high professionalism and positive behavior towards customers, it fosters a sense of respect and satisfaction, encouraging customers to engage in transactions Conversely, a lack of professionalism and poor behavior can lead to customer dissatisfaction This paper proposes the hypothesis that enhancing employee competence will significantly improve customer satisfaction in banking services.

H3 : Employee competence has positive effect on customer satisfaction with banking services

The environment of bank includes five items that related to service scape, parking space, dissemination of information, query handling, and networking of branches

In today's banking sector, the environment plays a crucial role in shaping customer experiences A well-maintained and frequently updated banking atmosphere fosters positive impressions, leading to increased customer comfort and satisfaction Conversely, neglecting these aspects can result in customer dissatisfaction Therefore, we propose the following hypothesis:

H4 : The environment of bank has positive effect on customer satisfaction with banking services

Transaction costs represent the expenses customers incur when engaging with banks, encompassing not only monetary costs like loan rates and service fees but also time-related costs such as waiting periods and procedural delays It is widely understood that banks offering lower loan rates, higher deposit rates, reduced service fees, shorter waiting times, and quicker procedures tend to enhance customer satisfaction compared to those with higher loan rates, lower deposit rates, increased service costs, longer wait times, and slower processes This study, therefore, posits the following hypothesis:

H 5: Good transaction cost has positive effect on customer satisfaction with banking servtces

Details will be made clear in the questionnaire (Appendix 3)

Customer satisfaction in banking services is determined by three key factors: the quality of services provided, the satisfaction with loan facilities, and the efficiency of transaction services.

This research examines the factors influencing customer satisfaction with banking services at commercial banks in Ho Chi Minh City, focusing on the quality of services provided by these institutions The study highlights the relationship between specific banking services and overall customer satisfaction, as depicted in the accompanying model.

Research methodology

The research approach can be categorized as either quantitative or qualitative, with each method serving as a means to analyze and discuss selected data The choice of approach is guided by the study's objectives and research questions (Yin, 1994) In this study, which aims to identify the key factors influencing customer satisfaction in banking services, the quantitative method was employed as the primary tool to effectively describe and measure the relationship between these factors and customer satisfaction.

This study employed a questionnaire to gather primary data, allowing for extensive population coverage and enabling the collected data to be measured and analyzed using statistical software.

The research process includes three main steps that are illustrated in Figure 3.2

Figure 3.2: Research process 3.2.2.1 Step 1: Generation of items

The initial phase of the survey development focuses on generating items based on a literature review that identifies five key factors influencing customer satisfaction in banking services To enhance clarity in the conceptual framework and gather insights from participants, interviews with seasoned professionals in the banking sector are conducted The majority of respondents concur with the suggested determinants of customer satisfaction For further details, the in-depth interview questionnaire can be found in Appendix 2.

The second step includes conducting a pilot survey with a sample size of 50 respondents knowledgeable about the banking sector This phase aims to preliminarily evaluate and refine the measurement scale, ensuring its reliability.

The study on customer satisfaction in banking services focuses on commercial banks in Ho Chi Minh City Initially, items with low Item-Total Correlation, defined as less than 30, were excluded based on Nunnally's criteria (1978) Subsequently, Factor Analysis was conducted, resulting in the removal of items with low factor loadings, specifically those below 50, as per Hair et al.'s guidelines.

A survey was conducted with 245 individuals who have engaged in transactions with various types of commercial banks in Ho Chi Minh City, including state-owned, joint-stock, wholly foreign-owned, and joint venture banks The constructs were refined using Cronbach's alpha and Factor Analysis, ensuring the reliability of the data Subsequently, Confirmatory Factor Analysis (CFA) was employed to validate these measures The research concluded with regression analysis to explore the relationships among the observed items, marking the final step in the research process.

3.2.3 Measurement scales of the questionnaire

Based on the theories and research discussed in earlier chapters, along with insights gained from preliminary interviews, the measurement scales for the questionnaire have been adapted and developed, as outlined in Table 3.1.

Coding Items of measurement scales Source

BFl Demand draft facility of bank A is very good

Basic BF2 Fixed deposits schemes of bank A are very good Jham and facilities BF3 Money transfer of bank A is very good Khan (2008)

BF4 Locker facility of bank A is very good BF5 A TM of bank A is very good

CONI Debit card of bank A is very good

Convenience CON2 Credit card of bank A is very good Jham and

CON3 Tele-banking of bank A is very good Khan (2008)

Jham and Employee ECl Attitude ofbank A's staff is very good

EC2 Professionality ofbank A's staff is very high New

Jham and EBl Service scape of bank A is very good

EB2 Parking space of Bank A is very good Jham and

The Khan (2008) environment EB3 Dissemination of information of bank A is Jham and of bank very good Khan (2008)

EB4 Query handling of bank A is very prompt Jham and

Khan (2008) - EB5 Networking of branches of bank A is very Jham and wide Khan (2008)

TCl Loan rate of bank A is very low New

Transaction TC2 Deposit rate of bank A is very high New cost TC3 Cost of service of bank A is very low New

TC4 Waiting time is the least New

TC5 Time for procedure is fastest New

CSI I totally satisfy with general services of bank

A Customer I totally satisfy with transaction of services, Jham and satisfaction CS2 loans facility provided by bank A Khan (2008)

CS3 I totally satisfy with quality of services of bank A

The scales for measuring independent variables were adapted from Jham and Khan (2008) and included two new scales Specifically, there are five scales for independent variables, comprising three scales with five items each—focusing on basic facilities, the banking environment, and transaction costs—along with one scale that contains three items.

The determinants of customer satisfaction on banking sen 1 ices: The case of commercial banks in Ho Chi Minh City

, (convenience), and one scale with two items (employee competence) The scale measurement for dependent variable was adapted from sample questions of Jham

' and Khan (2008) with three items These scales were used in the form of five-point

Likert technique The survey questions were anchored by five levels from "1" to

"5" (1 = strongly disagree; 2 = disagree; 3 = neutral; 4 = agree; 5 = strongly agree) Additional measurements on demographic factors were represented as follows:

The ownership structure of the bank is classified into four distinct categories: joint-stock ownership, assigned a value of "1"; state-owned entities, valued at "2"; wholly foreign-owned banks, marked with a value of "3"; and joint-venture banks, which carry a value of "4".

The number of bank's operation year from the foundation day was classified into:

I (i) Under 5 years (measured with value equal to "1 "); (ii) from 5 to 10 years

The age categories are defined as follows: (i) 0 to 10 years, assigned a value of "2"; (ii) 10 to 15 years, assigned a value of "3"; (iii) 15 to 20 years, assigned a value of "4"; and (iv) over 20 years, assigned a value of "5".

Jype of contact with the bank was divided to (i) individual (measured with value equal to "1 "); and (ii) business (measured with value equal to "0")

Age was classified into three separate groups: (i) under 30 (measured with value equal to "1 "); (ii) from 30 to 50 (measured with value equal to "2"); and (iii) over

50 (measured with value equal to "3")

Gender was divided to (i) male (measured with value equal to "1 "); and (ii) female (measured with value equal to "0")

The survey questionnaire, crafted from insights gathered during interviews, comprises 23 specific questions along with 7 additional inquiries, beginning with a concise open letter Originally developed in English, the questionnaire was tailored for Vietnamese customers to ensure relevance and clarity.

1 questionnaire had been translated into Vietnamese as understandable as possible

1 The English version of the questionnaire is attached in the appendix

An open letter accompanied the questionnaire to clarify the primary purpose of the survey This letter highlighted the significance of the respondents' enthusiastic and responsible participation in ensuring the questionnaire's successful completion.

In this part, there were 23 questions Among them, 5 questions were used to test the effect of "basic facilities" factor, 3 questions were taken to examine the impact of

The study utilized various factors to assess customer satisfaction, including "convenience" with 2 questions, "employee competence" with 2 questions, "environment of the bank" with 5 questions, and "transaction cost" with 5 questions Customer satisfaction was evaluated using a 5-point Likert scale, which allows for measuring both positive and negative responses to statements According to Likert (1932), respondents indicate their level of agreement by selecting from five options: "1" for strongly disagree, "2" for disagree, "3" for neutral, "4" for agree, and "5" for strongly agree.

This section presents seven questions aimed at gathering socio-demographic information from respondents, including the name of the bank where transactions were conducted (respondents may choose not to disclose this if they prefer), the type of bank ownership, and the bank's customer base size.

1 operation year from the foundation day, type of contact with the bank, age, gender, and an open question

Sampling

This research utilized a large sample size analysis based on a survey conducted through a convenient sampling method As noted by Hair et al (1998), it is essential for analysts to address various questions, one of which pertains to sample size Specifically, the researcher emphasizes that a sample size smaller than a certain threshold is inadequate for factor analysis.

50 observations, and preferably the sample size should be larger than or equal to

In factor analysis, it is essential to have five observations for each item analyzed Given that this study includes 28 observed items, a minimum sample size of 140 is required Consequently, a sample size of approximately 245 is considered acceptable for robust results.

Data collection

A survey was conducted from February 16 to 28, 2011, involving the distribution of thirty questionnaires to individual customers at various commercial banks in Ho Chi Minh City The purpose was to test the clarity of the questionnaire's content Based on feedback from experts, adjustments were made to improve the questionnaire Final versions were then directly delivered to respondents, who were asked to return them within two days to allow adequate time for thoughtful completion.

250 samples were returned After collecting and checking, 5 samples were rejected because they were not complete Finally, 245 samples were used The valid response rate attained 98%

This study employs various statistical methods, including frequency distribution tables, percentages, variance, and standard deviation, to analyze and compare data collected from questionnaires The analysis is conducted using SPSS software version 16.0.

The scale testing

The Cronbach's alpha coefficient is utilized to assess the reliability of a measurement scale, with a higher coefficient indicating greater homogeneity among the items According to Nunnally (1978), a scale is considered acceptable if the Cronbach's alpha is greater than 0.60, and any item with a Corrected Item-Total Correlation coefficient below 0.30 should be removed from the scale to ensure its validity.

Assessment of scale's uni-dimensionality, discriminant validity and convergent

Hair et al (1998) indicated that uni-dimensionality means all items in a scale have strongly associated with each other

! Neuman (1999) also said that one of the more advanced techniques, namely factor

Discriminant validity is a crucial analysis used to evaluate the uni-dimensionality of data, ensuring that items within a single construct are cohesive while remaining distinct from opposing constructs In contrast, convergent validity measures the correlation between two assessments of the same concept, highlighting the relationship between them.

Principal component factor analysis with Varimax rotation is primarily utilized to assess uni-dimensionality, condensing the original data into fewer variables for predictive purposes (Hair et al., 1998) In contrast, common factor analysis is frequently employed to evaluate discriminant validity.

1 convergent validity and explore the talent dimensions represented in the original : variables (Conway and Huffcutt, 2003) Therefore, it is appropriate for the current

The study utilizes common factor analysis through principal axis factoring, employing an eigenvalue criterion of 1.00 or higher to determine the number of factors to extract Consequently, any factors with an eigenvalue below 1.00 are excluded from the research model.

When the scale for one construct under the investigation is uni-dimensional, factor analysis will only give the result of one extracted factor This is very necessary

Customer satisfaction in banking services, particularly among commercial banks in Ho Chi Minh City, is influenced by several key factors The theoretical framework identifies these determinants as uni-dimensional constructs Additionally, any items exhibiting low factor loading, specifically those below 50, will be excluded from consideration to ensure the reliability and validity of the analysis.

(to not converge properly with the talent construct they were designed to measure

In reliability analysis, Cronbach's alpha is utilized for each scale to evaluate and enhance measurement items Hair et al (1998) assert that a minimum Cronbach's alpha coefficient of 60 is required for each construct, and items with a Corrected Item-Total Correlation coefficient below 30 will be excluded.

To ensure accurate measurement in research, it is essential that each item in a scale loads significantly on only one factor, demonstrating uni-dimensionality, as outlined by Anderson and Gerbing (1988) Furthermore, all items must exhibit high loadings on a single factor to confirm convergent validity, indicating that they effectively represent the underlying construct Additionally, for discriminant validity, it is crucial that no factor contains two distinct sets of items loading highly on the same factor, as emphasized by Hair et al (1998).

Multiple regression analysis

This study employs multiple linear regression analysis to investigate the relationship between five independent variables and customer satisfaction, the dependent variable To test our causal hypotheses, we refined and aggregated the items representing each concept before conducting the regression analysis.

One-way ANOV A

To assess customer satisfaction, a one-way ANOVA will be utilized to identify significant differences in satisfaction levels among various customer groups based on bank ownership, the number of operational years since establishment, and the type of contact.

This study examines the factors influencing customer satisfaction in banking services, specifically focusing on commercial banks in Ho Chi Minh City, with an emphasis on variables such as age and gender The findings aim to provide valuable insights for management to enhance satisfaction levels among different customer segments.

DATA ANALYSIS AND RESEARCH RESULTS

General information of respondents

This section presents data on respondents' contact types with the bank, along with their age and gender demographics Additionally, it includes information about the bank's ownership type and the number of years the bank has been in operation since its founding The findings will be illustrated using frequency tables and charts for clarity.

Total of 250 samples were collected However, 5 samples were rejected because they were not completed Finally, 245 samples were used to analyze

4.1.1 Type of contact with the bank

The frequency result of respondents' type of contact with the bank is presented in Table 4.1 ãI f

Table 4.1: Frequency of respondents' type of contact with the bank

Frequency Percent Valid Percent Cumulative Percent

A survey of 245 respondents revealed that 127 customers, accounting for 51.8%, visited the bank for individual contact, while 118 customers, representing 48.2%, sought business-related interactions This data is visually represented in Figure 4.1, illustrating the distribution of customer contact types with the bank.

Figure 4.1: Relative frequency of respondents' type of contact

The frequency result of respondents' age group is presented in Table 4.2

1 Table 4.2: Frequency of respondents' age group

Valid Cumulative Frequency Percent Percent Percent

The determinants of customer satisfaction on banking sen>ices: The case of commercial banks in Ho Chi Minh City

The majority of respondents, comprising 68.2% or 167 individuals, fell within the age range of 30 to 50 years Those over 50 years old accounted for 28.6%, with 70 respondents, while only 3.2% of participants, totaling 8 individuals, were under 30 years old A visual representation of the age group distribution is illustrated in Figure 4.2.

From 30 to SO yrs old Over 50yrs old

Figure 4.2: Relative frequency of respondents' age group 4.1.3 Gender of customers

The frequency result of respondents' gender is presented in Table 4.3

Table 4.3: Frequency of respondents' gender

Among 245 respondents, 118 customers were male, occupied 48.2% The remaining

127 customers were female, occupied 51.8% The comparison of respondents' gender is showed in Figure 4.3

Figure 4.3: Relative frequency of respondents' gender 4.1.4 Type of ownership of the bank

The frequency result of banks' type of ownership is presented in Table 4.4

Table 4.4: Frequency of banks' type of ownership

In a survey of 245 respondents, the ownership structure revealed that joint-stock ownership comprised 58% with 142 samples, followed by state-owned entities at 23.7% with 58 samples, wholly foreign-owned firms at 15.1% with 37 samples, and joint-venture ownership at 3.2% with 8 samples This distribution of bank ownership types is illustrated in Figure 4.4.

Figure 4.4: Relative frequency of banks' types of ownership 4.1.5 The number of bank's operation year from the foundation day

The frequency result of number of bank's operation year from the foundation day is presented in Table 4.5

Table 4.5: Frequency of number of bank's operation year from the foundation day

Out of 245 respondents, 33.9% (83 customers) conducted transactions with banks that have been operating for 15 to 20 years, while 32.2% (79 customers) chose banks with over 20 years of operation Additionally, 13.5% (33 customers) engaged with banks that have been in operation for under 5 years, and 11% (27 customers) preferred banks with 5 to 10 years of experience.

Since its foundation, banks operating for 1 to 5 years accounted for 11% of transactions, while those with 10 to 15 years of operation represented 9.4% of customer interactions Figure 4.5 illustrates the comparison of transaction volumes based on the number of operational years since the banks' establishment.

Under 5 years From 5 ã 10 From 10 ã 15 From 15 ã 20 Over 20 years years years years

Figure 4.5: Relative frequency of number of bank's operation year

The results of pilot survey

The result of pilot survey with 50 respondents is showed in Table 4.6 In detail, the mean values of independents variables and dependent variable are presented as follows:

The mean value of basic facilities is from 3.12 for "ATM of the bank" to 4.04 for

"Locker facility of the bank" The mean value of convenience is from 2.88 for

"Tele-banking of the bank" to 3.44 for "Credit card of the bank" The mean value of employee competence is from 3.26 for "Professionality of bank staff' to 3.58 for

"Attitude of bank staff' The mean value of the bank environment is from 2.68 for

"Parking space of the bank" to 3.60 for "Networking of branches of the bank" The mean value of transaction cost is from 2.54 for "Cost of service of the bank" to 2.76 i f r

' satisfaction is from 2.80 for "totally satisfy with general services of the bank" to 12.92 for "totally satisfy with quality of services of bank"

N Minimum Maximum Mean Std Deviation

4.2.2 Results of the scale testing

The basic facilities scale demonstrates a strong reliability with a Cronbach's alpha coefficient of 758 It includes five key items: demand draft facility, fixed deposits, money transfer, locker facility, and ATM services, all of which exhibit a high Corrected Item-Total Correlation coefficient exceeding 3 Consequently, these items will be retained for further analysis.

The convenience scale demonstrates a strong reliability with a Cronbach's alpha coefficient of 768 It includes three key items—debit card, credit card, and tele-banking—each exhibiting a high Corrected Item-Total Correlation coefficient exceeding 3 Consequently, these items will be retained for further analysis.

The employee competence scale demonstrates a strong reliability, evidenced by a Cronbach's alpha coefficient of 858 Key components of this scale include the attitude and professionalism of bank staff, both of which exhibit high Corrected Item-Total Correlation coefficients exceeding 3 Consequently, these items will be retained for further analysis.

The environment of bank scale

The bank environment scale demonstrates a strong reliability with a Cronbach's alpha coefficient of 845 Key components of this scale include service scape, parking space, dissemination of information, query handling, and networking of branches, all exhibiting high Corrected Item-Total Correlation coefficients exceeding 3 Consequently, these items will be included in the subsequent analytical phase.

The transaction cost scale exhibits a high Cronbach's alpha coefficient of 837, indicating strong internal consistency This scale includes five key items: loan rate, deposit rate, cost of service, waiting time, and time for procedure, all of which demonstrate significant Corrected Item-Total Correlation coefficients.

The customer satisfaction scale demonstrates a robust Cronbach's alpha coefficient of 813, indicating high reliability Key components of this scale include satisfaction with the bank's general services, transaction services, and loan facilities, all of which exhibit a significant Corrected Item-Total Correlation coefficient exceeding 30 Consequently, these items will be retained for further analysis.

A summary of the Cronbach's alpha result of the measurement scales in the pilot survey is provided in Table 4.7

Table 4.7: Summary ofthe Cronbach's alpha result (pilot survey)

Customer satisfaction on banking services 813

The Cronbach's alpha of all measurement scales are greater than 60 which shows that all items had good internal consistency

Following the assessment of the scale's suitability using the Cronbach's alpha coefficient, the research proceeds with factor analysis This method effectively reduces the number of observed items and identifies the underlying factors that encompass groups of correlated items.

The Kaiser-Meyer-Olkin (KMO) index is a crucial metric for assessing the suitability of factor analysis for sample data A KMO value ranging from 0.50 to 1.00 indicates that factor analysis is appropriate for the dataset.

Bartlett's Test indicates a significance level of less than 05, leading us to reject the null hypothesis This suggests that there is a correlation among the observed items, making factor analysis an appropriate method for further examination.

- Factor with eigenvalue is greater than or equal to 1.00 will be retained in the research model

- Variance explained must be greater than 50%

- Factor loading must be larger than or equal to 50 in order that the scale gets the convergent value

- This research uses the Principal Components method with the Varimax rotation 4.2.3.2 Results of factor analysis (pilot survey)

Factor analysis effectively condenses the information from the original 23 variables identified in the pilot survey into a smaller set of representative variables, ensuring minimal loss of information This method was employed to distill the 20 factors impacting customer satisfaction with banking services into meaningful components The outcomes of the factor analysis for the independent variables from the pilot survey are presented in Table 4.8.

Table 4.8: Factor analysis of independent variables

Note: Extraction method: Principal Component Analysis

, Rotation method: Varimax with Kaiser Normalization

' The result of factor analysis for dependent variable (pilot survey) is presented in Table 4.9

Table 4.9: Factor analysis of customer satisfaction on banking services

Factor 1 Customer satisfaction on banking services

The analysis revealed six key factor groups with eigenvalues ranging from 1.037 to 5.789, collectively explaining 74.751% of the cumulative variance Notably, the eigenvalue related to customer satisfaction in banking services was 2.199, surpassing the threshold of 1, with a variance contribution of 73.296%.

The results of main survey

The Cronbach's alpha coefficients for the independent variables ranged from 753 to 878, indicating good reliability, while the customer satisfaction score for banking services was 812 According to Nunnally (1978), a scale is deemed acceptable when the Cronbach's alpha exceeds 60 and each item's Corrected Item-Total Correlation is above 30 In the reliability analysis of the banking environment scale, the Corrected Item-Total Correlation coefficient for item EB5 was also evaluated.

"networking of branches of the bank" is only 294 (less than 30), hence this item will be eliminated out of the scale The result of reliability analysis is presented in Table 4.10

Table 4.10: Result of reliability analysis

Customer satisfaction on banking services 812

Following the reliability analysis of the measurement scales, factor analysis will be conducted excluding the EB5 item, which pertains to the networking of bank branches The factor analysis results for the independent variables, with EB5 omitted, revealed the presence of five distinct factor groups.

The first factor group consists of six items: EBl, EB2, EB3, EB4, ECl and EC2 The second factor group consists of four items: TCl, TC3, TC4 and TC5

The third factor group consists of five items: BFl, BF2, BF3, BF4 and BF5

The fourth factor group consists ofthree items: CONI, CON2 and CON3

The fifth factor group consists of one item: TC2

Details are presented in Table 4.11

Table'4.11: Factor analysis of independent variables

TC3 TCl TC5 TC4 BFl BF4 BF2 BF3 BF5 CON3 CONI CON2 TC2

Cumulative variance explained(%) 22.113 Note: Item EB5 excluded

Extraction method: Principal Component Analysis Rotation method: Varimax with Kaiser Normalization

The removal of the itein TC2 "deposit rate of the bank" significantly increases the Cronbach's alpha coefficient for the transaction cost scale, rising from an initial value of 836 to 878 The results of the factor analysis for the independent variables, excluding EB5 and TC2, are detailed in Table 4.12.

Table 4.12: Factor analysis of independent variables

TC3 TCl TC5 TC4 BFl BF4 BF2 BF3 BF5 CON3 CONI CON2

Cumulative variance explained(%) 23.374 Note: EB5 and TC2 excluded

Extraction method: Principal Component Analysis Rotation method: Varimax with Kaiser Normalization

Based on the results of factor analysis, there are four main factors including 18 observed items

The first factor, F AC _1, which represents the environment of the bank and employee competence, encompasses four key observed items: EB1 (service scape of the bank), EB2 (parking space of the bank), EB3 (dissemination of information of the bank), and EB4 (query handling of the bank) Additionally, it includes two crucial elements regarding employee performance: EC1 (attitude of bank staff) and EC2 (professionalism of bank staff).

The second factor, FAC_2, also known as transaction cost, encompasses four key observed items: TCl, representing the loan rate of the bank; TC3, which refers to the bank's service costs; TC4, indicating the waiting time; and TC5, denoting the time required for procedures.

The third factor, FAC _3, referred to as basic facilities, comprises five key observed items: BFl, which represents the demand draft facility of the bank; BF2, denoting the bank's fixed deposit schemes; BF3, highlighting the bank's money transfer services; BF4, indicating the locker facility offered by the bank; and BF5, which pertains to the bank's ATM services.

The fourth factor, F AC _ 4, referred to as convenience, encompasses three key observed items: CON1, which represents the bank's debit card, CON2, the bank's credit card, and CON3, the bank's tele-banking services.

The study reveals that the Corrected Item-Total Correlation coefficients for nearly all items, except item EB5, are significantly high, ranging from 479 to 809, exceeding the acceptable threshold of 30 Additionally, the factor loadings range from 625 to 876, surpassing the minimum acceptable level of 50 as established by Hair et al (1998).

Factor analysis was employed to evaluate the multidimensional aspects of customer satisfaction in banking services The results, as indicated in Table 4.13, revealed the extraction of a single component, which was identified as the criteria for customer satisfaction.

The determinants of customer satisfaction on banking services.ã The case of commercial banks in Ho Chi Minh City

1 Table 4.13: Factor analysis of the customer satisfaction criteria

Factor 1 Customer satisfaction criteria on banking services

To assess the suitability of factor analysis for sample data, two key methods are employed: the Kaiser-Meyer-Olkin (KMO) measure and Bartlett's test A KMO value between 0.50 and 1.00 indicates that factor analysis is appropriate Additionally, if Bartlett's test yields a significance level of less than 0.05, it suggests that the null hypothesis should be rejected, further supporting the validity of factor analysis.

Ho hypothesis: there is not the correlation among observed items and using the factor analysis is suitable

Table 4.14 displays the results of KMO and Bartlett's Test for the independent variables, revealing a KMO value of 708, which falls within the acceptable range of 50 to 1.00 Additionally, the p-value for these independent variables indicates statistical significance.

Table 4.14: KMO and Bartlett's Test of independent variables

Kaiser-Meyer-Olkin Measure of Sampling Adequacy .708

Bartlett's Test of Sphericity Approx Chi-Square 3.031E3 df 190

Table 4.15 presents the results of KMO and Bartlett's Test for customer satisfaction in banking services, revealing a KMO value of 0.686, which falls within the acceptable range of 0.50 to 1.00 Additionally, the p-value indicates that the results are statistically significant.

Table 4.15: KMO and Bartlett's test of customer satisfaction on banking services

Kaiser-Meyer-Olkin Measure of Sampling Adequacy .686

Bartlett's Test of Sphericity Approx Chi-Square 266.660 df 3

Hypothesis testing

The measurement scales are adjusted before running the multiple regression Details are presented in Table 4.16

I The environment of bank and employee competence

Measurement scales i EBI, EB2, EB3, EB4, ECI and EC2 I I

TCI, TC3, TC4 and TC5 1

FAC 3 BFI, BF2, BF3, BF4 and BF5

F AC 4 CONI, CON2 and CON3

In order to test the link between independent variables and dependent variable, the multiple regression equation is used as the following form (with the null hypothesis is proposed: /3 1 = /3 2 = /3 3 = /3 4 = 0 ):

The multiple regression model is employed to analyze customer satisfaction with banking services (SAT), utilizing four key independent factors: FAC_1, FAC_2, FAC_3, and FAC_4 This linear approach enables a comprehensive understanding of how these factors influence overall customer satisfaction in the banking sector.

This study investigates the factors influencing customer satisfaction with banking services, specifically focusing on commercial banks in Ho Chi Minh City By employing the Enter method, the research simultaneously analyzes various variables to determine which ones significantly impact customer satisfaction The findings aim to provide insights for banks to enhance their service quality and improve overall customer experiences.

Table 4.17 presents the model summary, revealing an adjusted R-squared value of 53.8% This indicates that 53.8% of the variability in SAT scores can be explained by the independent variables included in the model Additionally, the Durbin-Watson test shows that the residuals exhibit a positive correlation, which is considered acceptable.

Std Error of the Model R R Square Adjusted R Square Estimate Durbin-Watson

1 739a 546 538 67969959 1.957 a Predictors: (Constant), FAC_ 4, FAC_3, FAC_2, FAC_l b Dependent Variable: SAT

The result of ANOV A is presented in Table 4.18 The significant statistics value Sig = 000 < 05, therefore, the null hypothesis is rejected

Model Sum of Squares df Mean Square F Sig

Total 244.000 244 a Predictors: (Constant), FAC_4, FAC_3, FAC_2, FAC_l b Dependent Variable: SAT

Moreover, the result of coefficients is presented in Table 4.19 Basic facilities factor (FAC_3) has the significant statistics value: (Sig.) = 863 greater than 05 Therefore, this factor is excluded from the model

Model B Std Error Beta t Sig Bound Bound

The new multiple regression equation is presented as follows:

H 1: Customers are more satisfied with banking services if they are served hy employees of the bank have good competence and the environment of bank is renewed and frequent upgraded

The standardized beta coefficient for the bank environment and employee competence (FAC_l) is 546, with a p-value of 000, indicating statistical significance below the alpha level of 05 This suggests that, at a 95% confidence level, a well-maintained bank environment and competent employees significantly enhance customer satisfaction with banking services Consequently, hypothesis 1 is supported.

Hz: Customers are more satisfied with banking services if transaction cost the.v have to pay is the least and suitable

The standardized coefficients beta of transaction cost (F AC _2) is 205 and p value (sig.) is 000 less than alpha level 05 This means that at the level of confidence of

A significant 95% of transaction costs play a crucial role in customer satisfaction with banking services, indicating that customers are more content when they incur minimal and appropriate transaction fees This finding supports Hypothesis 2.

H 3 : Customers are more satisfied with banking services if basic facilities provided by the bank (traditional interactions with the bank) are performed good

The standardized coefficient beta for basic facilities (FAC_3) is 008, with a p-value of 863, exceeding the alpha level of 05 This indicates that, at a 95% confidence level, basic facilities do not significantly enhance customer satisfaction with banking services when executed well Consequently, hypothesis 3 is rejected.

Customers experience higher satisfaction with banking services when they have access to convenient facilities such as multichannel banking options, including debit cards, credit cards, telephone banking, and internet banking, allowing them to manage their finances without the need to visit a physical bank.

The standardized beta coefficient for convenience (F AC _ 4) is 185, with a p-value of 000, indicating statistical significance below the alpha level of 05 This suggests that at a 95% confidence level, the quality of convenience facilities positively influences customer satisfaction with banking services Consequently, hypothesis 4 is supported.

Customer satisfaction in banking services is significantly affected by the convenience of transaction facilities, transaction costs, the banking environment, and employee competence The results of the hypothesis testing are presented in Table 4.20.

Table 4.20: Summary of hypotheses testing

Customers are more satisfied with banking services if they

HI are served by employees of the bank have good competence

Supported and the environment of bank is renewed and frequent upgraded

H2 Customers are more satisfied with banking services if

Supported transaction cost they have to pay is the least and suitable

Customers are more satisfied with banking services if basic H3 facilities provided by the bank (traditional interactions with Rejected the bank) are performed good

Customers are more satisfied with banking services if they

~ have convenience facilities (multichannel banking including

Supported debit card, credit card, telephone banking, and internet banking) without actually going to the bank

Table 4.21 highlights the significance of independent factors, with the bank environment and employee competence identified as the most crucial elements Following these, transaction costs are deemed important, while convenience ranks last in terms of priority.

Table 4.21: The importance of independent factors

Rank of importance Coefficients Beta

• The environment of bank and 546 1 employee competence

Hierarchical regression analysis

Regression analysis is used to conduct the direct relationship between the independent factors, including the environment of bank, employee competence, i

The determinants of customer satisfaction on banking services: The case of commercial banks in Ho Chi Minh City convenience, transaction cost, and customer satisfaction on banking services The

The study examines how demographic characteristics such as gender, age, type of bank contact, ownership structure, and the number of operational years since the bank's establishment influence outcomes These demographic variables are analyzed as dummy variables to assess their moderating effects.

In this analysis, gender is coded with a value of 1 for females and 0 for males Age is categorized with a value of 1 for individuals aged 30 to 50, which represents 68.2% of the sample, while others receive a value of 0 For the type of contact with the bank, individual contact is assigned a value of 1, whereas business contact is assigned a value of 0 Regarding bank ownership, a value of 1 is given for joint-stock banks, as 58% of participants engaged with them, while other ownership types receive a value of 0 Lastly, the number of operational years since the bank's foundation assigns a value of 1 for those operating between 15 to 20 years, with all others receiving a value of 0.

Table 4.22: Hierarchical regression analysis of customer.satisfaction

The environment ofbank and employee competence 546 541

The determinants of customer satisfaction on banking sen'ices: The case of commercial banks in Ho Chi Minh City

, Table 4.22 shows that three groups of factors including the environment of bank and employee competence, convenience, transaction cost have significant positive relationships with customer satisfaction on banking services

In Model 2, five demographic characteristics were analyzed as dummy variables, revealing that the factors of bank environment, employee competence, convenience, and transaction costs significantly influence customer satisfaction with banking services However, the demographic characteristics showed no significant impact on customer satisfaction, as indicated by p-values ranging from 610 to 939, all exceeding the 05 threshold, as presented in Table 4.23.

Table 4.23: Coefficients of independent variables and moderate variables

Model B Std Error Beta t Sig

Num_yearl 009 119 004 076 939 a Dependent Vanable: SAT

The determinants of customer satisfaction on banking services: The case of commercial banks in Ho Chi lv!inh City

, In summary, there is no relationship between demographic -characteristics and

This research focuses on the relationship between customer satisfaction in banking services and three key factors: the banking environment, employee competence, and transaction convenience and costs.

CONCLUSIONS AND RECOMMENDATIONS

Conclusions

From the analytical results of the above chapter, the determinants of customer satisfaction on banking services are presented as follows:

SAT: Customer satisfaction on banking services

FAC_l: The environment ofbank and employee competence

This model explains 54.6% of the total variance in customer satisfaction on banking services through factor analysis and hierarchical regression analysis with the application of SPSS software

The environment of bank and employee competence is the most important factor Next is transaction cost And finally is convenience

Initially, the factors affecting customer satisfaction on banking services including l • ã•

The factor analysis reveals that three key elements positively influence customer satisfaction with banking services: the banking environment, employee competence, and transaction costs Additionally, convenience plays a significant role in enhancing customer experiences in the banking sector.

In Ho Chi Minh City, traditional banking services like demand drafts, fixed deposits, money transfers, locker facilities, and ATMs have become widely available through commercial banks As a result, these basic facilities fail to capture customers' attention or leave a lasting impression, leading to minimal impact on overall customer satisfaction.

When engaging in banking transactions, customers not only value the convenience of products and services but also place significant emphasis on the competence of employees and the overall banking environment.

The findings of this research offer valuable insights for commercial bank management by identifying key factors influencing customer satisfaction with banking services This understanding enables banks to develop effective marketing strategies aimed at attracting a larger customer base.

~::;as building and maintaining sustainable relationships with customers.

Recommendations

In today's competitive banking landscape, customers have numerous options for their transactions, making it essential for banks to quickly understand and meet their needs to achieve success The ability to satisfy customers is influenced by various factors, particularly the banking environment and employee competence Key elements include the service atmosphere, availability of parking, effective communication of information, efficient query handling, and the professionalism and attitude of bank staff.

Transaction costs encompass both monetary expenses, such as loan rates and service fees, as well as time-related costs, including waiting periods and procedural delays.

Convenience is a key factor in modern banking, allowing customers to conduct transactions without the need to visit a bank branch This is facilitated through multichannel banking options, which include debit cards, credit cards, telephone banking, and internet banking.

To enhance customer satisfaction in commercial banking, management should prioritize regular updates and emphasize the importance of the banking environment while investing in staff training for competence and professionalism This approach fosters a sense of respect among customers Additionally, banks need to implement flexible loan policies and service costs tailored to different customer segments, potentially through preferential interest rates and specific fees aligned with loan purposes and durations Strengthening customer care by actively understanding and meeting their needs is crucial, as is minimizing waiting and processing times to create a positive transaction experience Finally, banks should focus on developing and promoting innovative products and services, particularly in e-banking options such as telephone banking, home banking, and Internet banking.

Limitations

This research has several limitations that should be noted Firstly, data collection was confined to a limited number of commercial banks in Ho Chi Minh City, resulting in a small sample size that may compromise the reliability of the statistical analysis A larger sample size could enhance the validity of the findings Secondly, certain items that are popular in foreign markets may not be applicable to the Vietnamese banking context Additionally, the research primarily focuses on individual customers aged 30 to 50, which may not accurately reflect the broader customer base Lastly, the adjusted model presented in the study requires further evaluation to ensure its effectiveness.

The determinants of customer satisfaction on banking sen, ices: The case of commercial banks in Ho Chi Minh City

20 063 313 100.000 Extraction Method: Principal Component Analysis

3.3 Factor analysis of customer satisfaction on banking services

Kaiser-Meyer-Oikin Measure of Sampling Adequacy

Bartlett's Test of Sphericity Approx Chi-Square df Sig

Extraction Method: Principal Component Analysis a 1 components extracted

Initial Eigenvalues Extraction Sums of Squared Loadings Component

Total % of Variance Cumulative % Total % of Variance Cumulative %

Extraction Method: Principal Component Analysis

APPENDIX 5: RESULTS OF MAIN SURVEY 4.1 Reliability analysis of measurement scales

Reliability analysis of basic facilities scale

Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha if Item Deleted Item Deleted Total Correlation Item Deleted

Reliability analysis of convenience scale

The determinants of customer satisfaction on banking services: The case cf commercial hanks in Ho Chi Minh City

Reliability analysis of employee competence scale

EC2 3.58 367 766 a a The value is negative due to a negative average covariance among items This violates reliability model assumptions You may want to check item codings

Reliability analysis of the environment of bank scale

Reliability analysis of transaction cost scale

Reliability analysis of customer satisfaction on banking services scale

4.2 Factor analysis of independent items 4.2.1 Excluded EB5:

KMO and Bartlett's Test Kaiser-Meyer-Oikin Measure of Sampling Adequacy

BF1 BF4 BF2 BF3 BF5 CON3 CON1 CON2 TC2 Extraction Method: Principal Component Analysis

Rotation Method: Varimax with Kaiser Normalization a Rotation converged in 7 iterations

BF1 BF4 BF2 BF3 BF5 CON3 CON1 CON2 Extraction Method: Principal Component Analysis

Rotation Method: Varimax with Kaiser Normalization a Rotation converged in 6 iterations

4.3 Factor analysis of customer satisfaction on banking services

I' Kaiser-Meyer-Oikin Measure of Sampling Adequacy

Bartlett's Test of Sphericity Approx Chi-Square

CS2 CS3 Extraction Method: Principal Component Analysis a 1 components extracted

Initial Eigenvalues Extraction Sums of Squared Loadings Component

Total % of Variance Cumulative % Total % of Variance

Extraction Method: Principal Component Analysis

1 Convenience, Basic facilities, Transaction cost, the environment of bank and employee competencea a All requested variables entered b Dependent Variable: Customer satisfaction on banking services

Model R R Square Adjusted R Square Std Error of the Estimate

1.957 a Predictors: (Constant), Convenience, Basic facilities, Transaction cost, the environment of bank and employee competence b Dependent Variable: Customer satisfaction on banking services f

Model Sum of Squares df Mean Square F Sig

Total 244.000 244 a Predictors: (Constant), Convenience, Basic facilities, Transaction cost, the environment of bank and employee competence b Dependent Variable: Customer satisfaction on banking services

Model B Std Error Beta t Sig

The environment of bank and

- - a Dependent Variable: Customer satisfaction on banking services

Model Variables Entered Removed Method

1 The environment of bank and employee competence, Transaction

Enter cost, Convenience, age1, contact1, gender1, num_year1, own_bank1 a a All requested variables entered b Dependent Variable: Customer satisfaction on banking services

Adjusted R Std Error of the

Model R R Square Square Estimate Durbin-Watson

1 740a 547 530 68580773 1.957 a Predictors: (Constant), num_year1, The environment of bank and employee competence, Basic facilities, age1, contact1, Convenience, gender1, Transaction cost, own_bank1 b Dependent Variable: Customer satisfaction on banking services

Model Sum of Squares df Mean Square

Total 244.000 244 b Dependent Variable: Customer satisfaction on banking services

The environment of bank and

Convenience 184 gender1 048 age1 022 contact1 018 own_bank1 047 num_year1 009

1 a Dependent Variable: Customer satisfaction on banking services

In a study examining customer satisfaction with banking services in Ho Chi Minh City, three key factors were found to explain approximately 54.6% of the variance in customer satisfaction However, the research indicates that there are additional factors influencing satisfaction that have yet to be identified.

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The determinants of customer satisfaction on banking sen,ices: The case of commercial banks in Ho Chi Minh City

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The determinants of customer satisfaction on banking sen,ices: The case of commercial banks in Ho Chi Minh City

Personal banking services include main services as follows:

Current and savings accounts consist of:

+ Current account in VND + Current account in foreign currencies + Savings account in VND

+ Savings account in foreign currencies

+ Time deposit in VND + Time deposit in foreign currencies + Time deposit in gold

+ Credit card + Debit card + Prepaid card

- Loans consist of secured loans and unsecured loans

+ Installment loans for house, house-foundation purchase + Installment loans for house construction and renovation + Consumption installment loan

+ ã Installment loans for business, production and services + Overseas study loan

+ Automobile loan + Loans secured by certificate of deposit, valued papers + Issuance of domestic letter of guarantee

+ Consumption loans for company's staff + Overdraft facility

+ Currency options + Gold options + Foreign exchange + Gold custody + Gold trading

+ Outward remittance to domestic banks + Outward remittance to overseas

+ Inward remittance from domestic banks + Inward remittance from overseas

+ Send and receive money with Western Union + Outward remittance through Western Union

The determinants of customer satisfaction on banking sen>ices: The case of commercial banks in Ho Chi Minh City

+ Payment service for real estate trading + Electricity bill payment

+ Mobile phone bill payment + Personal finance consultant Business banking services include main services as follows:

- Account services consist of deposits and cash management

+ Flexible deposit + Current account + Current account with bonus rates + Upstair savings

+ Time deposit + Time deposit with flexible rates + Margin deposit

+ Cash collection + Bill collection + Cash payment + Bill payment

Credit products consist of working capital finance, export finance, import finance, term loan for fixed assets/projects, guarantees, etc

+ Domestic trade finance + Installment loan for enterprises

+ Loans for procurement, reserve + Secured loans by receivables from export documentary by D/A, DIP, L/C

+ Import finance + Import finance with import collateral

Term loan for fixed assets/projects

+ Term loan for fixed assets/projects + Automobile loan

+ Outward telegraphic transfer (TIT) + Inward remittance

+ Export collection + Import L/C + Export L/C + Import CAD

+ Domestic letter of credit + Insurance

+ Export collection + Import L/C + Export L/C + Import CAD + ExportCAD

+ Derivative products + Domestic letter of credit + Insurance

The dete-rminants of customer satisfaction on banking services: The case of commercial banks in Ho Chi Minh City

APPENDIX 2: THE QUESTIONNAIRE OF IN-DEPTH INTERVIEW

Nguyen Thanh Nien, a student in the Vietnam-Netherlands Program for a Master's in Development Economics, is conducting research on the factors influencing customer satisfaction in banking services, specifically focusing on commercial banks in Ho Chi Minh City This study aims to enhance customer satisfaction and is intended solely for scientific purposes Participants are encouraged to share their opinions, which will be confidentially analyzed and presented in a general report format.

Please answer the following questions Thank you very much for your participation

To answer this questionnaire, please think of one bank (called bank A) you did transactions Based on the characteristics of this bank A, please answer the following questions:

- The name of bank A (no need to mention if you feel unfavorable)

- For ownership, bank A belongs to:

- The number of bank A's operation year from the foundation day:

Part 1: According to your level of agreeableness, please tick in the appropriate box for each of the statements below from "1" to "5" (1 = strongly disagree; 2 disagree; 3 = neutral; 4 = agree; 5 = strongly agree)

Please check (X) in only one chosen box

No Information = 0 ~ ~ ell 1:11 ell 1:11 ~ = ~ ~ ell = 0 ~ ell

The factors affect customer satisfaction on banking_ services as follows

1 Demand draft facility of bank A is very good 0 0 0 0 0

2 Fixed deposits schemes of bank A are very good 0 0 0 0

3 Money transfer of bank A is very good 0 0 0 0

4 Locker facility of bank A is very good 0 0 0 0 0

5 A TM of bank A is very good 0 0 0 0 0

6 Debit card of bank A is very good 0 0 0 0 0 !

7 Credit card of bank A is very good 0 0 0 0 0

8 Tele-banking of bank A is very good 0 0 0 0 0

9 Attitude of bank A's staff is very good 0 0 0 0 0

10 P:-ofessionality of bank A's staff is very high 0 0 0 0 0 The environment of bank I

11 Service scape of bank A is very good 0 0 0 0 0 I

12 Parking space of Bank A is very good 0 0 0 0 0 I

Dissemination of information of bank A IS very !

14 Query handling of bank A is very prompt 0 0 0 0 0

15 Networking of branches of bank A is very wide 0 0 0 0 0 I

16 Loan rate of bank A is very low D D D D 0

17 Deposit rate of bank A is very high 0 0 0 0 0

18 Cost of service of bank A is very low 0 0 0 0 0

19 Waiting time is the least 0 0 0 0 0

20 Time for procedure is fastest 0 0 0 0 0

Please give your level of satisfaction to bank A

21 I totally satisfy with general services of bank A 0 0 0 0 0

22 I totally satisfy with transaction of services, loans

23 I totally satisfy with quality of services of bank A 0 0 0 0 0

Part 2: Please give us the following information:

1 Personal information (to be convenient for sending the result ofthis research to you)

2 Do you come to bank A for individually or business contact?

3 Please tell your age group

5 Would you please tell us what can be done to improve customer satisfaction of bank A?

Thank you very much for your cooperation!

Nguyen Thanh Nien Email: nguyen.thanh.nien@vnp.edu.vn or nienbidv@gmail.com

The determinants of customer satisfaction on banking services The case of commercial banks in Ho Chi Minh City

APPENDIX 4: RESULTS OF PILOT SURVEY

3.1 Reliability analysis of measurement scales

Reliability analysis of basic facilities scale

Item-Total Statistics Scale Mean if Scale Variance if Cor.rected Item- Cronbach's Alpha if Item Deleted Item Deleted Total Correlation Item Deleted

Reliability analysis of convenience scale

Item-Total Statistics Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha if Item Deleted Item Deleted Total Correlation Item Deleted

Reliability analysis of employee competence scale

EC2 3.58 371 763 a a The value is negative due to a negative average covariance among items This violates reliability model assumptions You may want to check item codings

Reliability analysis of the environment of bank scale

The determinants of customer satisfaction on banking sen ices: The case of commercial banks in Ho Chi Minh City

Reliability analysis of transaction cost scale

Scale Mean if Scale Variance if Corrected Item- Item Deleted Item Deleted Total Correlation

Reliability analysis of customer satisfaction scale

Scale Mean if Scale Variance if Corrected Item- Item Deleted Item Deleted Total Correlation

3.2 Factor analysis of independent items

Bartlett's Test of Sphericity Approx Chi-Square df

Cronbach's Alpha if Item Deleted

Tiêu đề	The Determinants Of Customer Satisfaction On Banking Services: The Case Of Commercial Banks In Ho Chi Minh City
Tác giả	Nguyen Thanh Nien
Người hướng dẫn	Dr. Cao Hao Thi
Trường học	University of Economics Ho Chi Minh City
Chuyên ngành	Development Economics
Thể loại	thesis
Năm xuất bản	2011
Thành phố	Ho Chi Minh City

Định dạng
Số trang	94
Dung lượng	2,71 MB