Problemstatement
Nowadaysa s globalizationa n d liberalization o f financiali n s t i t u t i o n s a c c e l e r a t e , competitionamongbanksbecomesmoreintense.Therefore,inordert ofacewiththatlie.rcecompetition,commercialbanksinVietnamingeneralandHoChiM inhCity inparticularalwaysstriveto improveaccessthroughexpansionofAutomaticTellerM a c h i n e s ( A T M s ) a n d b r a n c h n e t w o r k ; i n t r o d u c e n e w f e a t u r e s f o r b o t h depositan d loanprodu ctsa t attractiverate;a n d developnewe l e c t r o n i c b a n k i n g facilitiesliketelephon ebanking,homebanking, SMSbankingandInternetbanking.From that,banksexpecttomeetthevariousneedsofcustomersandbringthemthebestsatisfacti on.
Despite the importance of customer satisfaction, many banks face numerous complaints regarding their products and services Common issues include frequent ATM failures, high loan interest rates, low deposit interest rates, expensive service fees, complicated procedures, and unprofessional employee behavior These factors contribute to customer dissatisfaction, leading to a loss of clientele and negatively impacting market share and profitability Therefore, it is essential for commercial banks to understand customer demands and analyze the factors influencing their satisfaction Prioritizing customer satisfaction should be a crucial objective for banks.
Currently,t h e r e a r e notm an y r e s e a r c h e s o n the d e t e r m i n a n t s o f customer satisfactiono n bankings e r v i c e s a t thec o m m e r c i a l b a n k s i n HoC h i MinhC i t y Therefore,thispaperwillcontributetofindoutthefactorsthatsignificantlyimpact oncustomersatisfactionatthecommercialbanksinHoChiMinhCity.TheresultofthisstudyiscrucialformanagementofcommercialbanksinVietnamingeneral
Thedeterminantso f customersatisfactiono n bankingservices.Thecaseofcommercialbank s in HoC h i Minh
Thedeterminantsofcustomersatisfactiono n bankingservices.‘ThecaseofcommercratbanksinHoChiMinhCity andHoChiMinhCityinparticulartoproduceimportantpoliciestoconsolidateandcontinualenhance theirbankingservices.
Researcho b j e c t i v e s
Todetermine the main f a c t o r s a f f e c t i n g cu sto m ers a t i s f a c t i o n o n b an ki ng services.
Researchq u e s t i o n s
Researchs c o p e
Theinvestigatedo b j e c t s ofthisresearcha r e j u s t f o c u s e d o n individuals.Ho ChiMinhC i t y isselecteda s researchp l a c e Moreover,t h e researchi s carriedou tin2011.
Researchs t r u c t u r e
Firstchapterbegins withintroduction,referringproblem statement,researchobjectives,researchquestions,researchscope.
Thedeterminantso f customersatisfactiono n bankingservices.‘Thecaseofcommercialbanks inHoChiMinhCity
Secondc h a p t e r i s na m e d l i t e r a t u r e r e v i e w T h i s c h a p t e r p r e s e n t s d e f i n i t i o n s o f customersatisfactionandbankings e r v i ce s Theoreticalf r a m e w o r k regardingthedeterminantsofcustomersatisfaction,andempiricalstudi es arealsoreviewedi n thischapter.Finally,overviewofcommercialbanksinHoChiMinhCityandthe pres entmainbankingservicesareshowed.
Thirdchapterbeginwiththeanalyticalframework.Nextisresearchmethodology.Itcoversbackgro undofresearchplace,samplingmethodandsamplesizetosurvey.Besides,variabled escriptionwithdescriptivestatistics andaregressionmodeltoexaminethedistrib utionlevelofeachfactortocustomersatisfactionarepresented.
Ins u m m a r y , c h a p t e r o f i n t r o d u c t i o n p r e s e n t s p r o b l e m s t a t e m e n t , o b j e c t i v e s o f research,r e s e a r c h q u e s t i o n s , s c o p e o f r e s e a r c h a n d r e s e a r c h structure.T o understandc l e a r l y a b o u t t h e o r e t i c a l f r a m e w o r k , a n d e m p i r i c a l s t u d i e s , t h e ne xt chapterwillpresent.
Thedeterminantso f customersatisfactiono n bankingservices.‘Thecaseofcommercialb a n k s i nHec h i MinhCity
Thischapterstartswithdefinitionsofkeyconceptsrelatedto thisresearchsuchascustomers a t i s f a c t i o n , b a n k i n g s e r v i c e s S e c o n d l y , l i t e r a t u r e r e v i e w o f cu s t o m e r satisfactionisintroduced.Th ir dl y, theovervie wof commercialb a n k s in HoChi
Conceps
Customersatisfaction,abusinessterm,isameasurementofh o w ac o m p a n y sup pliesproductsandservicessatisfyorsurpasstheexpectationofcustomers.Inthecontextofa h i g h l y competitivema rketeconomy,enterprisesalwaysh a v e t o competefiercelytoattractmorecustomerespeciallynewcustomersandpotential customers.Hencecustomersatisfactionha s becomea n extremelyi m p o r t a n t c omponentinthebusinessstrategyofanycompanybecauseitis consideredasthemaino i f f e r e n t i a t o r
Theconceptofbankingservicesisveryextensive.Itreferstoavarietyofservicepro ductsprovidedbythebanks.Theseserviceproductsattachtothemainactivitiesofa b a n k suc ha s h o l d i n g p e o p l e ’ s depositss a f e w h i l e s t i l l e n a b l i n g t h e m t o withdrawanamountofmoneywhennecessary;providingmortgage,individualand' businessloanproducts;creditcardissuanceandhandlingcreditcardtransactions;billpayments;domesticandinternationalremittance;etc.
Thedeterminantso f customersatisfactiono n bankingservices.‘Thecaseofcommercialb a n k s i nHec h i MinhCity
Literaturereviewofcustomersatisfaction
Cardozomaybeconsideredas thefirst personc a r r i e d outthestudyofcustom ersatisfaction.I n t h e r e s e a r c h o n c u s t o m e r e f f o r t , e x p e c t a t i o n , a n d s a t i s f a c t i o n i n 1965,hefoundthatcustomersatisfactionwasaffectedbytheefforts expendedtoobtaintheproduct,andtheexpectationsrelatedtothat product.Indetail,customersatisfactionwithaproductwillbehigherwhentheyspends ubstantialattemptstoacquirethatproductthanwhentheyonlyspendmodestattempts.His findingswerecontraryt o u s u a l c o n c e p t s o f t h e c o n v e n i e n c e o f c u s t o m e r s a n d t h e m a r k e t i n g effectiveness.B e s i d e s , h i s researcha l s o indicatedthat customersatisfaction wa s higherwhentheproductsatisfiedexpectationsthanwhen theproductdidnotreachtheexpectations.
Parasuraman,Z e i t h a m l andB e r r y ( 1 9 8 5 a n d 1988)d e v e l o p e d a 2 2 - i t e m s c a l e SERVQUALwithfivedimensions(reliability,tangibles,assurance,responsiveness,an dempathy) toevaluatethe perceptionso f consumerso n se rv ice q u a l i t y i n theretailand servicecompaniesonthebasisofr e s u l t s ofasurveyof200consumers(greatertha norequalto25yearsold)inashoppingmallinamajormetropolitanareai n t h e S o u t h w e s t o f t h e U n i t e d S t a t e s F r o m t h e d i s c r e p a n c y b e t w e e n t h e exp ectationsandperceptionsofconsumersofservices,theymeasuredthelevelofconsumer s a t i s f a c t i o n
However,ina r e s e a r c h oft h e c o r r e l a t i o n s betweenserviceq u a l i t y , c u s t o m e r satisfactionand purchaseintentionsin1992throughanalyzing660questionnairesgatheredfromcust omersoffourdifferentserviceindustries(fastfood,pestcontrol,banking,anddrycleaning)i namedium- sizedc i t y intheSoutheastoftheUnitedStates,CroninandTaylorfocusedonmeasurin gthequalityofservicebasedontheactualperformancetoassessthelevelofcustomersatisfaction insteadofcomparingtheperceptionandexpectations.
The determinants of customer satisfaction in banking services, particularly in commercial banks in Ho Chi Minh City, reveal that customer satisfaction is not solely influenced by expectations Research indicates that providing excellent customer service and effectively addressing customer complaints are crucial for maintaining high satisfaction levels This approach not only prevents damage to customer satisfaction but also ensures that firms meet the evolving needs of their clients Ultimately, prioritizing customer satisfaction is essential for enhancing future profitability in the banking sector.
D o u g a l l d i d a research o f t h e m a i n d e t e r m i n a n t s o f c u s t o m e r satisfactio ni n Canada i n 1 9 9 6 onthebasiso f datacollecteda p p r o x i m a t e l y 3 2 5 usabl equestionnaires i n totalof400deliveredq u e s t i o n n a i r e s t h r o u g h thesurve ymethod.Atlast,theyfound thatthereexisted averystr on g relationshipb e t w e e n servicep r o b l e m s , servicer e c o v e r y abilityandcustomersatisfaction.Be sides,products,servicefeatures,andservicequalitydimensionswerealsodetermineda stheimportantfactorsaffectingcustomersatisfactionbutatalowerextent.
Andaleeb,i n h i s r es e a r c h o n them a i n f a c t o r s i n f l u e n c i n g o n t h e s a t i s f a c t i o n o f patientswiththehospitalsinthehealthcareserviceindustryata largecityanditssuburbinPennsylvania(northeasternandmid-
AtlanticareaoftheUnitedStates)in1998,c a r r i e d o u t a n a l y z i n g t h e d a t a w i t h 130a c c e p t e d questionnaires of3 9 0 deliveredquestionnaires.Thesequestionnaireswerecollectedfrompatientsoffourh ospitals,includingtwohospitalswith1 0 0 bedsandtwohospitalswith450beds.Hech osetheprobabilitys a m p l e andtestedthehypothesesb y themultipleregressionm odel.Thefindingsofh i s researchshowedthatfivefactorsh a d significanti m p a c t o n thes a t i s f a c t i o n o f patients,n a m e l y t h e c o m p e t e n c e o f the
Thedeterminantso f customersatisfactiono n bankingservices.Thecaseof commercialb a n k s inHoC h i MinhCity staff,qualityo f thefacilities, c o m m u n i c a t i o n w i t h p a t i e n t s , t h e demeano ro f thestaff,andperceivedcosts.
( 1 9 9 9 ) a l s o i n t h e h e a l t h c a r e servicesectorintheUnitedSt at es, focusedona nalyzingthedatagatheredfromasurveyofinternalcustomers(physicians,pharmaci sts,nurses,qualitydepartment,andl a b o r a t o r y t e c h n o l o g i s t s ) A n d t h e y r e v e a l e d t h a t a c c u r a c y , t i m e l i n e s s , a : i d completenessw e r e m a j o r d e t e r m i n a n t s o f customers a t i s f a c t i o n o n hospitalinformations y s t e m s
Sonne(1999)executedanempiricalresearchwiththeaimof findingoutthemainfactorsi n f l u e n c i n g ont h e s a t i s f a c t i o n ofc u s t o m e r s ofN o r w e g i a n Instituteo f Fisheriesa n d AquacultureL td withco ns ul tan tse r vi ces inTromso,Norway.T h e customersofinstitutewereaskedabouttheirperceptionan dassessmentondifferentfacetsforfinishedprojectsthroughthequestionnairewiththeLikertsc aleofseven.Thrcughf a c t o r analysisonthebasiso f collectedd a t a , herstudysho wedthatthecompetenceofconsultantsandtechnicalreliabilityhadsubstantiale ffectoncustomers a t i s f a c t i o n
Int h e t o u r i s m i n d u s t r y , a r e s e a r c h w a s d o n e b y E k i n c i a i m e d a t i n v e s t i g a t i n g factorsaffectingcustomersatisfactionin2003.Throughusingthe structuralequationmodeling,tenvarioushypothesesweretested.Theresultsident ifiedthatthesatisfactionoftouristswasmostlyinfluencedbyservicequality.
Meanwhile,JamalandNaser(2003)undertookastudyonthemaindeterminantsofcustomer satisfactionintheretailbankingindustryinPakistan.Byconcentratingonanalyzingthedatacoll ectedfrom165completedquestionnairesof
300distributedquestionnairesatabranchoftheFirstWomenBankLtd.inamajornortherncit yofPakistanaccordingto themultivariateregressionmodel,theyfoundthatt h e contractual(core)andthecusto mer- employeerelationship(relational)oftheservicehadsignificantimpactoncustomersatisfa ction.However,theyalsoindicatedthat
Thedeterminantso f customersatisfactiono n bankingservices.Thecaseof commercialb a n k s inHoC h i MinhCity
Thedeterminantsofcustomersatisfactiononbankingservices.’ThecaseofcommercialbanksinHoChiMinhCity theredidnote x i s t asignificantl i n k betweent a n g i b l e a s p e c t s o f thes erv i ce environmenta n d customersa tisf a c ti on
EboliandMazzulla(2007)usedthestructuralequationmodeltomeasureandfindoutthe keyfactorsinfluencingonthesatisfactionofstudentsonthebusserviceinthepublictra nsportations e c t o r intheurbanareaofCosenza,SouthItaly.Intheirresearch,asur veywasconductedwith763studentsaimatunderstandingc l e a r l y abouttheexpe ctationsandneedsofstudentstowardsthebusservice.Basedontheanalyticalresults,theyid entifiedthattherewasastronglinkbetweenservicequalityattributes(cleanliness,personnels e c u r i t y , informationsystem,helpfulnessofpersonnel,physicalconditionofbussto ps,availabilityofshelterandbenchesatbusstops,overcrowding,andsafety)andthestudents’satisfact iononthebusservice.
In 2008, Agarwal developed a model identifying six key factors influencing consumer satisfaction in India's railway services, based on a survey of 500 respondents from Lucknow City The analysis revealed that all six factors positively impacted overall customer satisfaction, with employee behavior and customer-oriented platform services being the most significant Other contributing factors included the efficiency of reservation counters, the quality of services on trains, the availability of tangible platform amenities, and access to trains and tickets.
Especially,arecentresearchofcustomersatisfactionwiththeperformanceofbankswasdone byJhamandKhanintheretailbankingsectorofIndiain2008.Throughthesystematic methodology,t h e y analyzed thedataof555respondentsg a t h e r e d fromfiveI ndianbanks(twonationalbanksandthreeprivatebanks).Intheirstudy‘,thelevelofcustomers atisfactionwasassessedthroughmeasuringthesatisfactorydegreewiththequalit yofservices,thesatisfactorydegreewiththetransactionof
Thedete•minantso f customersatisfactionon bankingservices.’ThecaseofcommercialbanksinHeC h i Minh services,thesatisfactorydegreewithloansfacility,andthesatisfactorydegreewithgeneralserv ices.Fromthat,theyexploredfourkeyfactorsaffectingthesatisfactionofcustomers,n a m e l y b a s i c f a c i l i t i e s ( o r traditionalf a c i l i t i e s ) o f thebank.convenience(conve nient transactionsforcustomers noneedtogotothebank),thebehaviorofemployees,andthebankenvironment.
In today's service industries, transaction costs play a crucial role in economic exchanges, as customers are highly concerned about these costs Transaction costs encompass not only the monetary expenses associated with acquiring a product or service but also the time and effort customers invest in completing transactions As a result, transaction costs often exceed the actual costs of products or services and significantly influence consumer behavior The term "transaction cost," introduced by Ronald Coase in the 1930s and 1960s, aims to provide a theoretical framework for understanding when businesses should perform tasks internally versus outsourcing them Companies tend to operate internally as long as it is more cost-effective than outsourcing Transaction cost theory emphasizes the reduction of costs and highlights how hierarchical incentives can foster economic collaboration, whereas market incentives may lead to inefficient economic outcomes.
Astudyonthetransactionc o s t approachwasdonebyW i l l ia m s o n i n theUnit edStatesi n1 9 8 1 Theresultso f hisr e s e a r c h i n d i c a t e d t h a t t r a n s a c t i o n c o s t s wer e influencedbyspecificity,frequency,opportunisticbehavior,limitedrationalitya nduncertainty.A n d t h r o u g h h i s t r a n s a c t i o n c o s t a p p r o a c h , t r a n s a c t i o n s r e l a t e d t o buyingandsellingaswellasinformalexchangesofgiftandemotionali nteractionswereexplainedo b v i o u s l y
Meanwhile,C h e u n g (1987)carriedoutaresearchoneconomicorganizationa n d transactioncostsinHong Kongandfound thattransactioncostswerecostspeople maynotaware.
Thedeterminantso f customersatisfactiono n bankingsem›ices.‘ThecaseofcommercialbanksinHoChi MinhCity
Table2.1provides asummaryofresearchesonthedeterminantsaffectingcustomersatisfactioni n t h e c o n t e x t o f manyv a r i o u s s e r v i c e s T h e heterogeneous s e r v i c e contextsaretakenford evelopingasoundtheoreticalbaseforthepresentresearch.
Competenceo f thestaff,qualityofthefacilities, co mmunicationwithpatients, thed e m e a n o r oft h e staff,andperceivedcosts
Accuracy,t i m e l i n e s s , a n d c o m p l e t e n e s s of h o s p i t a l informationsy s t em Ribiereetal.(1999)
Cleanliness,p e r s o n n e l s e c u r i t y , i n f o r m a t i o n s y s t e m , helpfulnesso f p e r s o n n e l , p h y s i c a l co nditionofb u s stops,a v a i l a b i l i t y o f s h e l t e r andbenchesatbus
Employeeb e h a v i o r , c u s t o m e r - o r i e n t e d b a s i c platformservices,reservationc o unt ers, servicesontrains,t a n g i b l e p l a t f o r m a menities,a n d t h e availabilityoftrainsandtickets
Service problems, service recovery, products,servicefeatures,andserv ice qualitydime nsions
Basicf a c i l i t i e s ( o r t r a d i t i o n a l facilities),con venience( c o n v e n i e n t t r a n s a c t i o n s forcustom ers),thebehaviorofemployees,andthebankenvironment JhamandKhan(2008)
Tosumup,therearemanyfactorsaffectingcustomersatisfaction inthebanki ngsectorsuchasserviceproblems,servicerecovery,products,servicefeatures,servicequalitydim ensions,basicfacilities(ortraditionalf a c i l i t i e s ) , convenience(convenienttran sactionsforcustomersnoneedtogotothebank),thebehaviorofemployees,andtheenvir onmentofbank.
OverviewofcommercialbanksinHoChiMinhCityandthepresentmain bankingservices
The commercial banking system in Ho Chi Minh City comprises three state-owned banks (Agribank, BIDV, MHB), thirty-nine joint-stock banks, including the ten largest banks: VietinBank, Vietcombank, Eximbank, ACB, Sacombank, MB, Techcombank, SeABank, LienVietBank, and Oceanbank Additionally, there are five wholly foreign-owned banks (HSBC, Standard Chartered, ANZ, Shinhan, Hong Leong) and five joint-venture banks (IVB, VIDPB, SVB, VSB, VRB), along with over forty branches of foreign banks, all of which play a crucial role in driving the economy forward.
Mobilizingc a p i t a l a n d l e n d i n g a r e t w o m a j o r a c t i v i t i e s o f c o m m e r c i a l banks.However,theseactivitieshadthetendencyofsignificantdeclineintherecentyea rs.Inthecaseofcapitalmobilizationactivity,theymobilizedsignificantdomesticandforeig nfunds,increasedsavingsoftheeconomy.Mobilizedcapitalof thebankingsystemhasi n c r e a s e d overt h e y e a r s f r o m 2 0 0 5 t o 2 0 0 7 I n 2 0 0 5 , t h e c a p i t a l mobilizationgrowth ratewas32.1%.
% T h e n t h e c a p i t a l m o b i l i z a t i o n growthr a t e reachedtothepeakappro ximately54%in2007.Andfromthenonwards,capitalmobilizationstatusofcomme rcial banksdeclinedclearlyintheperiod from2007to2009d u e t o h i g h i n f l a t i o n a n d t h e i m p a c t s o f globale c o n o m i c d e p r e s s i o n T h e capitalmobilization g r o w t h rate decreasedt o 20%in2008a n d to 1 0 % in2009.DetailsareshowedinFigure2.1.
The determinantso f customersatisfactiono n bankingservices.Thecaseof commercialb a n k s i n HoChiMinhCity
Int he c a s e o f l e n d i n g a c t i v i t y , c o m m e r c i a l b a n k s c o n t r i b u t e d t o s t r e n g t h e n t h e investmentf o r l e n d i n g t o s a t i s f y t h e d e m a n d o f c a p i t a l f o r t h e e c o n o m y T h i s helpedbusinessestomaintainthestabilityofproductio n,technology investment, changingmachinesandequipments,therebyenhanc edtheproductionc a p a c i t y oftheeconomy.Thesourceofinvestmentcapitalforthee conomythroughthecreditinstitutionsovertheyearswasdividedintothreeperiods. Inthefirstperiodf r o m 2004to2006,the creditgrowthratehad aslightdecreasebutstillmaintainedatthequitehighlevelofover25%.Inthesecondperiod from2006to2007,thelendingactivitydevelopedquicklywithaveryhighgrowthrateapp roximately54%.But inthethirdperiodfrom
The determinantso f customersatisfactiono n bankingservices.Thecaseof commercialb a n k s i n HoChiMinhCity
Besidethebankingservicesrelatedtocapitalmobilizationan d lendingactiviti•.s, therearestillmanyotherservicesrelatedtocards,treasury,remittance,etc.
Bankings e r v i c e s a r e alsoclassifiedi n t o personalb a n k i n g s e r v i c e s andb usinessbankingservices.DetailswillbeshownobviouslyintheAppendix1.
Ina d d i t i o n , b a n k s a l w a y s s t u d y , d e v e l o p a n d a p p l y n e w p r o d u c t s a n d s e r v i c e s especiallye l e c t r o n i c b a n k i n g s e r v i c e s s u c h a s h o m e b a n k i n g , i n t e r n e t b a n k i n g , telephoneb a n k i n g , a n d S M S banking,e t c Th ese a r e them o s t m o d e r n b a n k i n g technologyserviceso f c o m m e r c i a l b a n k s Witho n l i n e p r o c e s s i n g feature,t h e electronicbankings e r v i c e provid esi n q u i r y a n d paymentu t i l i t i e s f o r alltypesofcustomers( i n d i v i d u a l s , b u s i n e s s e s , f i n a n c i a l i n s t i t u t i o n s , e t c ) whohaveo p e n e d accountsatthebanks.
Thedeterminantso f customersatisfactiono n bankingservice.r h c a s e o f commercialbank s iiiHeC h i l4inhCity
T M systemh a d over11,000m a c h i n e s ; andalmost50,000P O S (cardacceptan cedevices)wereinstalleda t theendof2010'.Moreover,thepayments y s t e m ofth ebankingi nd ust ry i s continuouslya p p l i e d withmodernizedt e c h n o l o g y , a d v a n c e d towardsautomation;expanded theservices,thescopeofapplication,andincreasedprocessingsp e e d aimedatencouragi ngpeopleenhancecardpayment,restricttheuseofcash.
S u m m a r y
Thel i t e r a t u r e r e v i e w o f c u s t o m e r s a t i s f a c t i o n i n v a r i o u s s e r v i c e i n d u s t r i e s w a s presentedi n thischapter I n there,s e r v i c e problems,s e r v i c e recovery,p r o d u c t s , servicefeatures,servicequalitydimensions,basicfacilities(ortraditional facilities),convenience(convenienttransactionsforcustomersnoneedtogotothebank),t hebehavioro f e m p l o y e e s , a n d the env ir on me nt o f ba n k a r e mainf a c t o r s a f f e c t i n g customers a t i s f a c t i o n int h e b a n k i n g s e c t o r T h e n e x t c h a p t e r w i l l p r e s e n t t h e analyticalframework,researchmethodologyandsetupthequestio nnairetoconductasurveywithcustomersoftheirevaluationonbankingservices.
Thedcterminantso f customersatisfactiono n bankingservices.rhecaseofcommercialb a n k s inHeC h i Minh
Atfirst,t h i s c h a p t e r presentsthe analyticalframework.Nextist h e r e s e a r c h methodologyinordertoempiricallyte sttheresearchmodel.Thirdly,thesamplingisintroduced.Fourthly,theresultofdat acollectionis presented.F i f t h l y , variousstatisticalmethodsarementioned.Sixthly, thewaytotestthesuitabilityofthescaleisintroduced.Nextaretheassessmentofscale’sun i- dimensionality,d i s c r i m i n a n t validity,convergentvalidity; multipleregress iona n a l y s i s andone- wayANOVA.Finally,summaryofanalyticalframeworkandresearchmethodologyconclude sthischapter.
A n a l y t i c a l framework
Basedo n t h e l i t e r a t u r e r e v i e w o f c u s t o m e r s a t i s f a c t i o n , t h e r e a r e m a n y f a c t o r s affectingc u s t o m e r s a t i s f a c t i o n i n variouss e r v i c e industr ies.I n particular, i n thebankingsector,s e r v i c e p r o b l e m s , servicer e c o v e r y , p r o d u c t s , servicef e a t u r e s , sewicequalitydimensions, b a s i c f a c i l i t i e s ( or traditionalf a c i l i t i e s ) , c o n v e n i e n c e (convenienttransactionsforcustom ersnoneedtogo tothebank),thebehaviorofemployees,andt h e e n v i r o n m e n t ofb a n k arem a i n determinantsofc u s t o m e r satisfaction.Thispaperproposesamodelfor testingthedeterminantsofcustomersatisfactiononbankingservicesinHoChiMinhCi ty.Themodelcanbedescribedasfollows:
Independent variables: basic facilities, convenience, employee
Thedcterminantso f customersatisfactiono n bankingservices.rhecaseofcommercialb a n k s inHeC h i Minh competence(behaviorofemployees),theenvironmentofbank(similartothepaperofJhamand
The determinantsof c ustome rsatisfactiono n bankingservices.’Thecaseof commercialbanksinHeC.hiMinhCily
Basicf a c i l i t i e s ( o r t r a d i t i o n a l facilities)a r e i n t e r a c t i o n s w i t h t h e b a n k s u c h a s demandd r a f t f a c i l i t y , f i x e d d e p o s i t s , m o n e y t r a n s f e r , l o c k e r f a c i l i t y , a n d A T M Whenthesetraditionalfacilitiesareperformedwell,thisw illmakecustomersfeelsatisfied;a n d o n t h e c o n t r a r y , c u s t o m e r s w i l l n o t s a t i s f y T h u s , t h e f o l l o w i n g hypothesisi s proposed: ×i:B a s i c f a c i l i t i e s h a v e p o s i t i v e effecto n c u s t o m e r s a t i s f a c t i o n w i t h b a n k i n g services.
Conveniencementionsconvenienttransactionsf o r customersnoneedtogo tothebank.Iti s n a m e d asm u l t i c h a n n e l bankingincludingdebit card,c r e d i t card,telephone banking,andi n t e r n e t b a n k i n g Whent h e s e c o n v e n i e n t f a c i l i t i e s a r e performedwell, thiswillalsobringcustomers thesatisfaction;andonthe contrary,customerswillnotsatisfy.Hence,thefollowinghypothesisisproposed:
Employeecompetenceisr e p r e s e n t e d throughbehaviorofe m p l o y e e s andt h e professionalityo f bankstaff.
Infact,humanisalwaysakeyfactorwhichleadstothesuccessinanyserviceindus try.Wh e n thest a f f ofabankhasahighprofessionalityandgoodbehaviortowardscusto mers,thiswillcertainlymakethemfeelrespectedandhappytodotransactionswiththatbank.
Simultaneously,thiswillalsocontributetoimproveandenhancethesatisfaction o f customers;andonthe contrary,whent h e s t a f f ofabankd o e s nothavea highp r o f e s s i o n a l i t y a n d b adbehaviortowardscustomers,theywillfeeldissatisfied.Therefore, thispaperproposesthehypothesisasfollows:
The determinantsof c ustome rsatisfactiono n bankingservices.’Thecaseof commercialbanksinHeC.hiMinhCily
The determinantsof customersatisfactiononb‹inIiiigservices T h e casc•ofcommercialbanksin HeChiMinhCily
Theenvironmentofbankincludesfiveitemsthatrelatedtoservicescape,parkingspace, disseminationofinformation,queryhandling,andnetworkingofbranches.Atpresent, inthecontextofbankingsector,thesearealsovcry importantthingsthatdirectlyinfluGnceoncustomers.Whentheenvironmentofb a n k is frequentupgradeda n d a t ta c h e d muchi m p o r t a n c e , t h i s willc e r t a i n l y b r i n g c u s t o m e r s the goodimpressiona n d makethemfeel comfortablea n d satisfie d.Onthecontrary,theywilldissatisfy.Hence,thefollowinghypothesisisproposed:
Transactioncostis thecxpensethatcustomershavetopaytodotraiisactionswiththebank.This isnotonlycostbymoneyfsuchasloanrate,costofservice)butalsocosto f t i m e ( s u c h a s w a i t i n g t i m e , t i m e f o r pr oce du re ) A c c o r d i n g t o c o m m o n sense,banksap plylowloanrate,highdepositrate,lowcostofservice,theleastwaitingtime,an dt h e f a s t t i m e f o r p r o c e d u r e , will bringc u s t o m e r s t h e m o r e satisfactionthanoneswithhighloanrate,lowdepositrat e,highcostofservice,thelongwaitingtime,andtheslowtimeforprocedure.Therefore,thi sstudy proposesthehypothesisasfollows:
Int h e c o n t e x t o f t h i s r e s e a r c h , c u s t o m e r s a t i s f a c t i o n o n b a n k i n g s e r v i c e s i s theresultofsatisfactioninthreedifferentaspects:thesatisfactionv³itlith equalityofservices;t h e s a t i s f a c t i o n onl o a n f a c i l i t i e s asw e l l ast r a n s a c t i o n s ofs e r v i c e s
Transaction cost providedbythebank;andthesatisfactionwithgeneralservices.Themodelofthisresearchi sillustratedinthefollowingfigure:
R e s e a r c h methodology
R e s e a r c h approach
Theresearcha p p r o a c h is ofteneitherquantitativeo r qualitative.Thequantitat iveandqualitativemethodsrefertothemeansthroughwhicho ne choosestodisc ussandanalyzetheselecteddata.Thebestapproachtouseforastudydependsonthatstudy’ sresearchp u r p o s e a n d t h e a c c o m p a n y i n g r e s e a r c h q u e s t i o n s ( Y i n , 1 9
9 4 ) Becauseoneofthemajorobjectivesofthisstudyistodeterminethemainfacto rsaffectingcustomersatisfactiononbankingservices,hencethequantitativemethodwa salsousedasthemaintoolinordertodescribeandmeasurethestrengthoftherelationship betweenthefactorsandcustomersatisfaction.
Inthisstudy,thequestionnairewasusedasthetoolto collectprimarydatabecauseitcancoveralargenumberofpopulations;andcollecteddataca nbemeasuredandanalyzedbyusingstatisticsoftware.
Final Questionnaire Factor Ana1)’sis
Confirmatory Factor Analysis (CFA) Reliability Analysis
Thedeterminantso f customersatisfactiono n bankingservices.‘Thecaseofcomtnercialb a n k s inHeC h i MinhCity
Researchprocess
Thefirststepinvolvesit em generationofthesurvey.Fromtheliterature revie w,fivefactorsaffectingcustomersatisfactiononbankingservicesaredetermined.I nordertoexplainobviouslytheconceptsusedintheconceptualframeworkandgetth ei d e a s f r o m t h e r e s p o n d e n t s , t h e i n t e r v i e w s w i t h e x p e r i e n c e d in dividualsi n bankings e c t o r arealsoundertaken.Almostrespondents a g r e e wi ththeproposeddeterminantsofcustomersatisfactiononbankingservices.Thequestionna ireofin-depthinterviewispresentedintheAppendix2.
Thesecondstepinvolvespilotsurvey,withthesamplesizeis50respondentswhoarewe ll-informeda b o u t thebankingsector.The purposeofthisstepis toprovidepreliminarye v a l u a t i o n andrefinementofthemeasurementscale Reli ability
Thedeterminantso f customersatisfactiono n bankingservices.Thecaseo f commercialba nk s inHeC h i MinhC i t y analysisisfirstusedtoexcludeitemswiththelow Item-
TotalCorrelation(i.e.lessthan.30)accordingtoNunnally(1978).Afterthat,throughF actorAnalysis,itemswithlowfactor loadings(i.e.lessthan.50)willberemovedaccordingtoHairetal.(1998).
The survey was conducted among individuals who have transactions with various types of commercial banks in Ho Chi Minh City, including state-owned, joint-stock, wholly foreign-owned, and joint venture banks A total of 245 respondents participated in the research The constructs were refined using Cronbach’s alpha and Factor Analysis based on the survey data Confirmatory Factor Analysis (CFA) was then employed to validate these measures Finally, regression analysis was performed to examine the relationships among the observed items, marking the concluding step of the research process.
M e a s u r e m e n t scalesofthequestionnaire
Ont h e b a s i s o f thet h e o r i e s a n ‹ l researches m e n t i o n e d i n t h e p r e v i o u s c h a p t e r s togetherwithinformationcollectedfrompreliminaryinterviews,themeas urementscalesofthequestionnairewereadaptedanddevelopedinTable3.1.
BF2 Fixedd e p o s i t s sc he me s ofbankA arevery good BF3 MoneytransferofbankAisverygood BF4 LockerfacilityofbankAisverygood
(2008) EC2 Professionality ofbankA’sstaffisveryhig]j Nt?W
EB1 ServicescapeofbankAisverygood Khan(2008) Jham and
Khan(2008) EB3 Disseminationo f informationo f bankA i s yood QueryhandlingofbankAisveryprompt
Jhamand Khan (2008) Jhama n d Khan (2008 ) Jham andKhan(20
EB5 Networkingofb r a n c h e s ofb a n k Ai s v e r y wide
TC5 Timefor procedurei s fastest New
It o t a l l y s a t i s f y w i t h q u a l i t y o f s e r v i c e s o f bankA ScalesmeasurementsforindependentvariableswereadaptedfromsamplequestionsbyJhamandKha n(2008)andtwonewscales.Indetail,therewerefivescalesforindependentvariables ,i n c l u d i n g threcscaleswithf i v e items(basicfacilities,theenvironmentofb a n k , andt r a n s a c t i o n cost),onescalew i t h threeitems
Thedeteriitinantsofcustomersatisfcictionenbatikinz•sem²ices.‘T h e caseofcommercialbanksinHo c“hi5lirihCity
(convenience),a n d o ne scalewitht w o items( e m p l o y e e c o m p e t e n c e ) T h e scale measurementfordependentvariablewasadaptedfromsamplequestionsof JhamandKhan(2008)withthreeitems.Thesescaleswereusedintheformoffive- pointLikerttechnique.The surveyquestionswereanchoredbyfivelevelsfrom
“1”to“5”(1=stronglydisagree;2=disagree;3=neutral;4—agree;5—stronglyagree).
Theownershipofthebankwasdividedtofourcategories:(i)joint- stock(measuredwithvalueequalto“1”);(ii)state- owned(measuredwithvalueequalto“2”);(iii)whollyf o r e i g n - o w n e d (measuredw i t h v a l u e e q u a l t o “ 3 ” ) ; a n d ( i v ) joint- x'enture(measuredwithvalueequalto“4”).
(iii)from10to15years(measuredwithvalueequalto“3”);(iv)from15to20 years(measuredwithvalueequalto“²l”);and(v)ovcr20years(mcasurc•dv³ithvalueequalto“5”)
Typeofcontactwiththebankwasdividedto(i)individual(measuredwithvalueeq ualto“1”);and(ii)business(measuredwithvalueequalto“0”).
(ii)from30to50(measuredwithvalueequalto“2”);and(iii)o•er50(measuredwithvalu eequalto“3”).
Thequestionnaireofthissurveywasdevelopedbasedontheinformationobtainedfromt heinterviews,including23specificquestionsand7additionalquestions,andstartedwiththeb riefopen letter.The‹questionnairewasadaptedanddevelopedinEnglish.However,t h e respon dentsw c r e Vietnamescc u s t o m e r s Hence, the
Thedeteriitinantsofcustomersatisfcictionenbatikinz•sem²ices.‘T h e caseofcommercialbanksinHo c“hi5lirihCity
ThedéterminanfsOfcustomersatisfactiononbankingservices.T h e caseofcommercialbanksinHoChiMinhCity questionnairehadbeentranslatedintoVietnameseas understandablea s possible. TheEnglishversionofthequestionnaireisattachedintheappendix.
Anopenletterwassenttotherespondentstogetherwith thequestionnaireaimed atdescribingwhatmainpurposethesurveywasimplemented.Particularly,theletterpre sentedtherespectandemphasizedthegreatimportantroleofenthusiasticandresp onsiblec o o p e r a t i o n o f therespondents i n fulfillingc o m p l e t e l y t h e questio nnaire.
Inthispart,therewere23questions.Amongthem, 5questionswereused totesttheeffectof“basicfacilities”factor,3questionsweretakentoexairiinetheimpac tof“convenience”factor,2questionswereusedto testtheeffectof“ e m p l o y e e competence”f a c t o r , 5questionsweretakentoexa minetheimpactof“theenvironmentofbank”factor,5questionswereusedtotesttheeffect of“transactioncost”factoroncustomersatisfaction,an d 3questionsweretakent oexaminethelevelo f c u s t o m e r s a t i s f a c t i o n t h r o u g h t h e L i k e r t s c a l e o f
5 - p o i n t According t o Likert(1932),usingtheLikertscalehelpstomeasurenotonlypositiver esponsebutalsonegativeresponsetoastatement.Basedontheviewpointaswellasthelevelofagr eeablenessofrespondents,theywillselectappropriateoneinprovided5choicesincluding“ 1 ” s t r o n g l y d i s a g r e e , “ 2 ” d i s a g r e e , “ 3 ” n e u t r a l , “4”a g r e e , a n d “ 5 ” str onglyagree.
Thiss e c t i o n i n c l u d e s 7 q u e s t i o n s r e l a t e d t o s o c i o - d e m o g r a p h i c informationo f respondentssuchasthename ofthebankyoudidtransactions(noneedtomentionify o u f e e l u n f a v o r a b l e ) , t y p e o f o w n e r s h i p o f the b a n k , t h e n u i r i b e r o f b a n k ’ s operationyearfromthefoun dationday,typeofcontactwith thebank,age,gender,andanopenquestion.
Théu'eIermiii‹ziifxofcustomer satisfactiononbankingservices.‘T h e caseof‹-ommercialbanksinHoChiMinhCity
Sampling
Thisresearchwasreliedonasurveywiththelargesamplesizeanalysis.Thesampleuastakenbyth econvenientmethod.Accordingt oHairetat.
(1998),theanalystneedstoanswerseveralquestionsofwhichoneisrelatedtosamplesize. Regardingthesamplesize,researcherwouldnotfactor- analyzeasamplethathasfewerthan50observations,an d preferablyt h e samplesi zeshouldbelargerthanorequalto
100 Inthefactoranalysis,we need5observationsforoneitem.Thisstudyhas28observeditems,thesamplesizemust beatleast140 Therefore,thesample sizeisapproximately245isacceptable.
Datacollection
Thesurveywasconductedduringtheperiodfrom16"to28‘February,2011.Fhirtyquestionnaire sv•eresenttoindividualcustomersatsomecommercialbanksinHo
„9hiMinh Cityinordertotest andensurethatthecontentofquestionnairewaseasytouniJerstand.4 “ o g e t h e r v³ithco mmcnts an d suggestionsfrom experts,thequestionnairev ³ a s adjusted.
Finalquestionnairesweredircctlydeliveredtoandcollectedfromtherespondents.Fhequ estionnairewasrequestedtobereturnedonlyaftertwoday.suponreceipt.1’hisgave respondentstimetothinkandfulfillthequestionnaire.
Statisticalm e t h o d s
Int h i s study,v a r i o u s statisticalmethodshavebeenusedsuchasfrequency’distr ibutiontables,percentages,variance,andstandarddeviation inordertoexamin eandcomparethecollecteddatafromthequestionnaires.Fordataanalysis,theSPSSsoftware version16.0hasbeenused.
Théu'eIermiii‹ziifxofcustomer satisfactiononbankingservices.‘T h e caseof‹-ommercialbanksinHoChiMinhCity
Thescaletesting
TheCronbach’salphacoefficientwasusedtotestthesuitabilityofthescale.Thehi gherc o e f f i c i e n t i n d i c a t e s theh ig he rh o m o g e n e i t y o f measurement i t e m s AccordingtoNunnally(1978),thescalewillbechosenwhentheCronbach’salphacoeff icientisgreaterthan.60andCorrectedItem-
Assessmentofscale’suni-dimensionality,discriminantvalidityandconvergentvalidity
Neuman(1999)alsosaidthat oneofthemoreadvancedtechniques,namelyfactoranalysisthati s oftenu s e d i n or dertotesttheuni- dimensionality o f data.Discriminantv a l i d i t y m e a n s t h a t i t e m s o f one c o n s t r u c t h a n g to ge the r, b u t a l s o divergeo r a r e n e g a t i v e l y a s s o c i a t e d w i t h o p p o s i n g c o n s t r u c t M e a n w h i l e , convergent validityassessesthedegreetowhichtwomeasuresofthesameconceptarec or r el a te d.
Principal component factor analysis with Varimax rotation is primarily utilized to assess uni-dimensionality by condensing the original data into fewer variables for predictive purposes (Hair et al., 1998) In contrast, common factor analysis is often employed to evaluate discriminant and convergent validity while exploring the talent dimensions inherent in the original variables (Conway and Huffcutt, 2003) Thus, the current research will leverage common factor analysis using principal axis factoring, with an eigenvalue criterion of greater than or equal to 1.00 to determine the number of extracted factors, ensuring that any factors with eigenvalues less than 1.00 are excluded from the research model.
Whcnthescaleforoneconstructunder theinvestigationisuni- dimensional,factoranalysiswillonlygivetheresultofoneextractedfactor.Th is is verynecessary
Thedeterminantsofcustomersatisfactionon bankingservices.’T h e caseofcommercialbank s inHoChiMinhCity becauseallmajorconstructsinthetheoreticalframeworkareuni- dimensional.I n addition,itemswithlowfactorloading(lessthan.50)willbe eliminatedsincetheydonotconvergeproperlywiththetalentconstructtheyweredesig nedto measure.Forreliabilityanalysis,Cronbach’salphaisappliedtoeachscaleaimedatassessingandr efiningthemeasurementitems.AccordingtoHairetal.
(1998),thescaleforeachc o n s t r u c t h a s t o r e a c h a m i n i m u m Cronbach’salphac o e f f i c i e n t o f 6 0 ; a n d itemswhichhavelowCorrectedItem- TotalCorrelationcoefficient(lessthan.30)willberemoved.
Fromt h a t , d i f f e r e n t a s s e s s m e n t s c a n b e m a d e F i r s t l y , n o i t e m l o a d s h i g h l y o n greatert h a n o n e f a c t o r t o i n d i c a t e u n i - d i m e n s i o n a l measurementi.e.o n e i t e m measuresonlyoneconstruct(Andersonand Gerbing,1988).Secondly,allitemsofascalemustloadhighlyononefactorrepresentingthebasicc onstruct.Highloadingsofallitemsshowtheconvergentvalidity,whileloadingononlyonefactor indicatesuni- dimensionalc o n s t r u c t T h i r d l y , n o factori nc lu des t w o s e t s ofi t e m s load inghighlyononefactortoindicatediscriminantvalidity(Hairetal.,1998).
One-wayA N O V A
Afterdetermining t h e important factors affectingcu s t o m e r s a t i s f a c t i o n , one- wavANOVAwillbeappliedtofindwhetherthereisasignificantdifferenceaboutthe satisfactoryl e v e l amonggroupsofcustomersi n relationt o theownershipoft hebank,thenumber ofbank’soperationyearfromthefoundationday,typeofcontact
The determinantso f customersatisfcictiono n bankingservices.T h e caseof commercialbanks inHeC h i MinhCity withthebank,a g e , gender Theresultsa r e expectedt o beuseful f o r themanag ementinimprovingthedegreeofsatisfactionforeachtypeofcustomer.
Summary
Agegroupofcustomers
Thefrequencyresultofrespondents’agegroupispresentedinTable4.2.Table4.2:Frequency ofrespondents’agegroup
Thedeterminantso f customersatisfactiono n bankingsem'ices.’"thec a s e ofcommercialbanksinHoChillinhC.ity
Unclc'r 30 yrs old Fi oin 30 to 50 yrs ol cl Ovcr 50 yrs old
Mostofrespondentsbelongedtotheagegroupfrom30to50with1 6 7 customers,occupied 68.2%.Thequantityofrespondentsover50yearsoldwas70,occupied28.6%.T h e r e wereo n l y 8 respondentsu n d e r 3 0 years o l d , o c c u p i e d 3 2 % T h e compa risonofrespondents’agegroupsisshowedinFigure4.2.
Genderofcustomer
Thefrequencyresultofrespondents’genderispresentedinTable4.3.Table4.3:Frequency ofrespondents’gender
Among245respondents,118customersweremale,occupied48.2%.Theremaining
Thedeterminantso f customersat isfact ion o n bankingservices.Thecaseofcommercialbank sinHoChiMinhCity
Figure4.3:Relativefrequencyofrespondents’ gender 4.1.4 Typeofownershipo f thebank
Thefrequencyresultofbanks’typeofownershipispresentedinTable4.4.Table4.4:Frequency ofbanks’typeofownership
Among245respondents,142sampleshadtheownershipwasjoint- stock,occupied58%;58sampleshadtheownershipwasstate- owned,occupied23.7%;37samples hadtheownershipwaswhollyforeign-owned,occupied15.1%,and8sampleshad theownershipwasjoint-venture,occupied3.2%.Thecomparisonofbanks’typesof ownershipisshowedinFigure4.4.
Joint-stock State-owned Joint venture
T h e numberofbank’soperationyearfromthefoundationday
Among245respondents,8 3 customersdidtransactionswiththebankswhichhadfr om15t o 2 0 o p e r a t i o n yearsfromt h e f o u n d a t i o n day,o c c u p i e d 33.9
%;7 9 customersdidtransactionswiththebankswhichhadover20operationyearsfrom thefoundationday,occupied32.2%;33customersdidtransactionswiththebankswhic hhadunder5operationyearsfrom thefoundationday, occupied1 3 5 % ; 27c ustomersdidtransactionswiththebankswhichhadfrom5to10operationyears
Thedeterminantsofcustomersatisfactiononbankingservices.ThecaseofcommercialbanksinHeChiMinhCity fromthefoundationday,occupied11%;and23customersdidtransactions withthebankswhichhadfrom10to15operationyearsfromthefoundationday,occupied9.4%.Thecomparisonofnumber ofbank’soperationyearfromthefoundation dayisshowedinFigure4.5.
Theresultsofpilotsurvey
Theresultofpilotsurveywith50respondentsisshowedinTable 4.6.Indetail,themeanv a l u e s o f i n d e p e n d e n t s v a r i a b l e s a n d d e p e n d e n t v a r i a b l e a r e p r e se n t e d a s follows:
Themeanvalueofbasicfacilitiesisfrom3.12for“ATMofthebank”to4.04for“Loc kerf a c i l i t y o f the b a n k ” T h e m e a n v a l u e o f c o n v e n i e n c e i s f r o m 2 8 8 f o r “Tele- bankingofthebank”to3.44for“Creditcardofthebank”.Themeanvalueofemployeecompete ncei s from3.26for“Professionalityo f bankst a f f ’ to3.58for
• “AttitudeofbankstafP’.Themeanvalueofthe bankenvironmentisfrom2.68for“Parkingspaceofthebank” to3.60for“Networkingofbranchesofthebank”.Themeanvalueoftransactioncostisfrom2. 54for“Costofserviceofthebank”to2.76for“Depositrateofthebank”a n d “Waitingt i m e ” The meanvalueo f customer
N Minimum Maximum Mean Std.Deviation
CS3 50 2.00 4.00 2.92 695 satisfactionisfrom2.80for“totallysatisfy withge n e r a l services ofthebank”to 2.92for“totallysatisfywithqualityofservicesofbank”.Table4.6:Descri ptive statistics
l Descriptives t a t i s t i c s
Resultsof.thescaletesting
Basicfacilities s c a l e hashighC r o n b a c h ’ s a l p h a coefficient( 7 5 8 ) Fivei tems ofbasicfacilitiesscalearedemanddraftfacility,fixeddeposits,moneytransfer,lockerfacili ty,andATMwhichh a v e highC o r r e c t e d I t e m -
T o t a l C o r r e l a t i o n coefficient (greaterthan 3).Therefore,theseitemsareretainedinthene xtanalyticalsection.
Conveniences c a l e hash i g h C r o n b a c h ’ s a l p h a c o e f f i c i e n t ( 7 6 8 ) T h r e e i t e m s of conveniences c a l e a r e d e b i t c a r d , c r e d i t c a r d , a n d tele- bankingw h i c h h a v e h i g h CorrectedI t e m - T o t a l C o r r e l a t i o n c o e f f i c i e n t ( g r e a t e r t h a n 3).T h e r e f o r e , t h e s e itemsareretainedinthenext analyticalsection.
EmployeecompetencescalehasveryhighCronbach’salphacoefficient(.858).Twoitemsofemp loyeecompetencescaleare attitudeofbankstaff, andprofessionality
TheenvironmentofbankscalehasveryhighCronbach’salphacoefficient(.845). Fivei t e m s o f t h e e n v i r o n m e n t ofb a n k s c a l e a r e s e r v i c e s c a p e , p a r k i n g s p a c e ,disseminationofinformation,queryhandling,andnetworkingofbranches whichhavehighCorrectedItem-TotalCorrelation coefficient(greaterthan.3).Therefore,theseitemsareretainedinthenextanalyticalsection.
TransactioncostscalehasveryhighCronbach’s alphacoefficient(.837).Fiveitemsoftransactioncostscaleareloanrate,depositrate,costofservic e,waitingtime,andtimeforprocedurewhich havehighC o r r ec t e d I te m-
T ot al C o r r e l a t i o n coe ff ic ie nt (greaterthan.3).Therefore,theseitemsareretainedinthen extanalyticalsection.
Customers a t i s f a c t i o n s c a l e h a s v e r y h i g h C r o n b a c h ’ s a l p h a c o e f f i c i e n t ( 8 1 3 ) Threeitemsofcustomersatisfactionscalearethesatisfactionwithge neralservicesofthebank;thesatisfactionwithtransactionofservices,loansfacilityprov idedbythebank;andthesatisfactionwithqualityofservicesofthebankwhichhavehig hCorrectedI t e m -
TheCronbach’salphaofallmeasurementscalesaregreaterthan.60whichshowsthatallite mshadgoodinternalconsistency.
Factoranalysis
AftertestingthesuitabilityofthescalethroughtheCronbach’sa l p h a coefficien t,the researchcontinueswiththefactoranalysiswhichhasaneffectofreducingthequantity ofobserveditemsandexploringthefundamentalfactorsinwhichcontain
- Kaiser-Meyer-Olkin(KMO)isanindexwhichisused totestthesuitabilityoffactoranalysiswiththedataof samples.IfthevalueofKMOis large(between.50and1.00),factoranalysisisappropriate.
Thedeterminantso f customersatisfactiono n bankingservices.’T h e caseofcommercialbank s inHoChiMinhCity
- Bartlett’sTesthasthemeaninglevel lessthan.05,thismeansthatwewillrejectthenullhypothesis,i.e.thereisnotthecorrelationa mongobserveditemsandusingthefactoranalysisissuitable.
- Factorwithe i g e n v a l u e i s greaterthano r equalto1 0 0 willbe retainedi n t heresearchmodel.
Factoranalysiswillcondensetheinformationcontainedintheoriginalfactorsintoa _ smallersetofrepresentativevariableswithaminimumlossofinformation.Therewer eat o t a l 23v a r i a b l e s from thep i l o t surveyt o assesst h e impactsoft h e ' informationfactorsoncustomersatisfactionwithbanking services.Factor analysis
. wasusedi n ordertoreducethe20factorsintomeaningfulf a c t o r s Theresult of factoranalysisforindependentvariables(pilotsurvey)isshowedinTable4.8.
Thedeterminantso f customersatisfactiono n bankingservices.’T h e caseofcommercialbank s inHoChiMinhCity
Thedetet-minantsofcustomersatisfactiarion bank i ng services.’T h e caseofcommercialbanksin HeChihlinhCity
Factor 2 Factor 3 Factor 4 Factor S Factor 6
EB l EC2 EC 1 EB2 TC3
TC l TC5 TC4 CON3 CGN2 CON I BF4 BF3
Cumulativevarianceexplained(%) 21.112 37.510 49.160 60.796 68.242 74.75lj Note:Extractionmethod P r i n c i p a l ComponentAnalysisRo tationmcthcd.’Variincixv²ithKaiserNormalization
Theresultoffactoranalysisfordependentvariable(pilot survey)ispresentedi n Table4.9.
(greaterthan1),accounting74.751%ofthecumulativevariance,the eigenvalueofcustomers a t i s f a c t i o n onb a n k i n g servicesw a s 2 199( g r e a t e r t h a n 1)a n d t h e varianceattained73.296%.
Theresultsofmainsurvey
R e l i a b i l i t y analysis
.878.Andt he reliabilitys c o r e of customer s a t i s f a c t i o n o n b a n k i n g s e r v i c e s wa s 812.AccordingtoNunnally(1978),the scalewillbechosenwhentheCronbach’salphac o e f f i c i e n t isg r e a t e r t h a n 60 a n d t h e C o r r e c t e d Item- TotalCorrelationcoefficientofe a c h i t e m m u s t b e l a r g e r t h a n 30.I n r e l i a b i l i t y analysiso f t h e environmentofbankscale,theCorrectedItem- TotalCorrelationcoefficientofEBS
, “networkingofbranchesofthebank”isonly.294(lessthan.30),hencethisitemwill beeliminatedoutofthescale.TheresultofreliabilityanalysisispresentedinTable4.10.
Factoranalysis
Basedo n thea b o v e resultso f reliabilitya n a l y s i s f o r measurements c a l e s , factor analysiswillbecarriedoutwithoutEB5item(networkingofbranchesofthebank).The resultsoffactoranalysisforindependentvariables
Thefirstfactorgroupconsistsofsixitems:EB1,EB2,EB3,EB4,EC1andEC2Thesecondfactorgr oupconsistsoffouritems:TC1,TC3,TC4andTC5
Thethirdfactorgroupconsistsoffiveitems:BF1,BF2,BF3,BF4andBFSThefourthfactorg roupconsistsofthreeitems:CONI,CON2andCON3
Factor1 Factor 2 Factor3 Factor4 Factor 5
Continuously,theitemTC2“depositrateofthebank”willberemovedtobringahigher Cronbach’s a l p h a coefficientf o r transactionc o s t scale(.878comparedt o i nitialvalue.836).Theresultoffactoranalysisforindependentvariables(EB5and
Extractionm e th o d P r i n c i p a l C o m p o n e n t AnalysisR ot at i on method.VarimaxwithKaiserNormalization
Thedeterminantso f customersatisfactiono n bankingservicesrhecaseof commercialb a n k s i nHoC h i klinhCity
Basedo n theresults o f factora n a l ys i s, t h e r e a r e fo ur mainf a c t o r s i n c l u d i n g 1 8 observeditems.
Thef i r s t f a c t o r F A C 1( c a l l e d a s t h e e n v i r o n m e n t o f t h e b a n k a n d e m p l o y e e competence)i n v o l v es 4observeditems of5initialobserved it ems EBl“ s e r v i c e scapeo f t h e b a n k ” , E B 2 “ p a r k i n g s p a c e o f t h e b a n k ” , E B 3 “ d i s s e m i n a t i o n o f informationofthebank”,EB4“queryhandlingofthebank”,andtwomoreitemsEC1
Thesecondfac to r FAC2 (calledastransactionc o s t ) involves4observedi t e m s : TC1“loanrateofthebank”,TC3“costofserviceofthebank”,TC4“waitingtime”,andTC5“ti meforprocedure”.
ThethirdfactorFAC3 (calledasbasicfacilities)stillinvolves5observeditemsthesamea s befo re.T h e y a r e BF 1“ d e m a n d d r a f t f a c i l i t y o f t h e b a n k ” , B F 2 “ f i x e d depos itss c h e m e s of thebank”,B F 3 “ m o n e y t r a n s f e r o f thebank”,B F 4 “ l o c k e r f acilityofthebank”,andBF5“ATMofthebank".
ThefourthfactorFAC4 (calledasconvenience)alsoinvolves3observeditemsthe sameasbefore.TheyareCONI“debit cardofthebank”,CON2“creditcardofthebank”,andCON3“Tele-bankingofthebank”.
Inthisstudy,theresultsshowthattheCorrectedItem- TotalCorrelationcoefficientsofallitems(exceptitemEBS)ineachscalearequitehi gh(rangingfrom.479to
.809)comparedtotheacceptable level(.30)andfactorloadings,rangingfrom.625 to.876,comparedtoacceptablelevel(.50)accordingtoHaireta1.(1998).
Withregardtocustomersatisfactiononbankingservices,factoranalysisisusedtoassessth emultidimensionalnature.Table4.13showsthatonlyonecomponentwasextractedandspecifie dascustomersatisfactioncriteria.
Thedeterminantso f customersatisfactiono n bankingservicesrhecaseof commercialb a n k s i nHoC h i klinhCity
Thedeterminantso f customersatisfactiono n bankingservices.Thecasec fcommercialb a n k s inHeC h i Minhbity
Inaddition,anothermethodisalsousedtotestthesuitabilityoffactoranalysiswiththedat a of s a m p l e s byr e l y i n g o n thevalueo f Kaiser-Meyer- Olkin( K M O ) a n d Bartlett’stest.
IfthevalueofKMOislarge(between.50and1.00),factoranalysisisappropriate.Bartlet t’stesthasthemeaninglevellessthan.05,thismeansreject
Hohypothesis:t h e r e i s nott he correlation a m o n g o b s e r ve d i t e m s a n d usi ngt h e factoranalysisissuitable.
Theresulto f KMO a n d Ba r t l e t t ’ s T e s t o f i n d e p e n d e n t v a r i a b l e s i s pr ese nt ed i n Table4.14.TheKMOvalueofindependentvariableswas.708(between. 50and
TheresultofKMOandBartlett’sTestofdependentvariable(customer satisfactiononb a n k i n g s e r v i c e s ) i s presented i n T a b l e 4 1 5 T h e KM Ov a l u e o f d e p e n d e n t variablewas.686(between.50and1.00)andthep- valueofdependentvariablewasstatisticallys i g n i f i c a n t
Thedeterminantso f customersatisfactiono n bankingservices.Thecasec fcommercialb a n k s inHeC h i Minhbity
The environment of bank and employee competence EB1, EB2, EB3, EB4, ECI and EC2 FAC_
FAC_2 TC1, TC3, TC4 and TC5
3 Basic facilities FAC_3 BF1, BF2, BF3, BF4 and BF5
4 Convenience FAC_4 CON I, CON2 and CON3
Bartlett'sTestofSphericity Approx.Chi-Square 266.660 df 3
l Adjustedm e a s u r e m e n t s c a l e s
Regressionm o d e l
The environment of bank and employee competence EB1, EB2, EB3, EB4, ECI and EC2 FAC_
FAC_2 TC1, TC3, TC4 and TC5
3 Basic facilities FAC_3 BF1, BF2, BF3, BF4 and BF5
4 Convenience FAC_4 CON I, CON2 and CON3
Bartlett'sTestofSphericity Approx.Chi-Square 266.660 df 3
Themultipleregressionmodelis u s e d toanalyze.Intheregressionmodel,depen dentv a r i a b l e i s c u s t o m e r s a t i s f a c t i o n o n bankings e r v i c e s fSAT)an df o
Thedeterminantsofcustomersaris[actiononbankingservices.‘Thecaseo,fcommercialbanksinHeChiMinhCity u r maini n d e p e n d e n t f a c t o r s a r e F A C 1,FAC2 , F A C 3 , a n d F A C 4 T h e
, Thedeterminantsof customersatisfactiono n bankingservices."£hecaseo[commercialb a n k s inHoChiMinhCity puttingallvariablesintosimultaneouslytofindoutwhichvariablesaieaccepted( theEntermethod).
3 8 % variablenesso f S AT isexplainedb y i n d e p e n d e n t v a r i a b l e s i n the model.T h e D u r b i n -
Std.ErroroftheEs timate Durbin-Watson
1 739a s46 538 67969959 1.957 a Predictors: (Constant),FAC4 , FAC3 , FAC2 , FAC1 b DependentVariable:SAT
TheresultofANOVAi s presentedi n Table4.18.Thesignificantstatisticsvalue( Sig.=.000