INTRODUCTION TO THE STUDY
Rationale of the study
Since 1997, the Vietnamese Government has made significant investments in Information Technology infrastructure and Internet networks, capitalizing on the country's youthful population of 87 million, with over 60% under the age of 30 By 2010, Vietnam boasted a high Internet penetration rate, with 26.8 million users representing 31% of the population, positioning the nation as a promising hub for various Internet-based businesses and activities, including e-shopping, e-banking, e-communication, e-entertainment, e-education, e-marketing, e-advertising, and social networking.
Banks have consistently led the way in adopting new technologies to enhance their products and services With recent advancements, they now have greater opportunities to exceed customer expectations In addition to traditional banking methods like counters, phone, and ATMs, the widespread use of the Internet has revolutionized banking, allowing customers to access services anytime and anywhere Internet banking offers a faster, more convenient, and efficient way to manage finances while ensuring security.
Many banks in Vietnam have recently introduced new Internet banking services that leverage Internet technology to enhance customer convenience and benefits Despite high Internet penetration, the adoption of these services remains modest Banks are prioritizing both customer acquisition and retention, as acquiring new customers can be significantly more expensive than retaining existing ones Therefore, customer retention has become crucial for banks today This research aims to identify the key factors influencing customer satisfaction with Internet banking and to offer strategic recommendations to improve overall satisfaction levels.
Problem statement
Enhancing customer satisfaction in Internet banking is crucial in Vietnam, where adoption rates remain low Increased customer satisfaction fosters loyalty and retention, ultimately driving long-term profitability and growth for banks This research seeks to identify key factors influencing customer satisfaction in Internet banking, offering recommendations for banks to elevate their service quality and better meet customer needs.
Research objectives and questions
This research aims to identify the key factors influencing customer satisfaction in Internet banking within Vietnam and to provide actionable recommendations for banks to enhance this satisfaction Specifically, it seeks to answer the question: What are the primary determinants of customer satisfaction in Vietnam's Internet banking sector?
Significance and scope of the study
Banks in Vietnam are focused on enhancing customer satisfaction to retain existing Internet banking clients while also attracting new ones This study aims to identify the key factors influencing customer satisfaction in Internet banking and offers strategic recommendations for banks However, it is important to note that the research is limited to a sample size of 100 to 200 participants due to constraints in time and resources.
Research methodology
This study utilizes quantitative research to assess customer satisfaction levels regarding Internet banking in Vietnam An online survey was selected as the primary method due to its convenience, flexibility, and efficiency in gathering data The participants in this survey are customers who use Internet banking services.
Internet banking who are currently use Internet banking channel at a bank, age from 18 –
A survey was conducted among individuals aged 50 and above residing in major cities in Vietnam to assess their satisfaction with Internet banking services The analysis utilized descriptive statistics and T-tests to identify key factors that significantly influence user satisfaction.
The secondary data are also collected in form of figures and statistics from Government’s General Office of Statistics, financial institutions and some market research agencies.
Structure of the study
This research is organized into five chapters, beginning with an introduction that outlines the study's rationale, problem, objectives, questions, and methodology The second chapter reviews existing literature on Internet banking and the factors influencing customer satisfaction The third chapter details the research methodology and design Chapter four focuses on data analysis and presents the research findings, while the final chapter offers recommendations and concludes the study.
Figure 1.6: The structure of the study
Chapter 2: Literature Review Chapter 1: Introduction to the study
Chapter 4: Data Analysis and Findings
LITERATURE REVIEW
Customer satisfaction
Customer satisfaction is a crucial element for a company's long-term success, as it significantly impacts customer loyalty, retention, and the acquisition of new customers.
Customer satisfaction is influenced by how well a product performs compared to the buyer's expectations When a product fails to meet these expectations, the customer feels dissatisfied Conversely, if the product meets expectations, the customer is satisfied However, when the product surpasses expectations, it leads to a state of high satisfaction or delight.
Customer satisfaction is a multifaceted concept that can be defined as an evaluative response to the purchase and consumption experience of a product According to Hunt (1977), it reflects the emotional evaluation of a consumer's feelings towards a service, while Rust and Oliver (1994) emphasize that it is influenced by the positive emotions evoked by the service Patterson (1993) adds that customer satisfaction arises from comparing expected outcomes with actual experiences, highlighting its significance in understanding consumer behavior.
Some customer satisfaction factors have been developed in the American Customer
Satisfaction Index (ACSI) model by the University of Michigan’s Ross School of
The American Customer Satisfaction Index (ACSI) is a cause-and-effect model that measures customer satisfaction through various indices, including customer expectations, perceived quality, and perceived value It evaluates satisfaction levels and the resulting outcomes, such as customer complaints and loyalty.
Figure 2.1.1: American Customer Satisfaction Index
Source: Michigan’s Ross School of Business (http://www.bus.umich.edu/)
In addition to perceived quality and customer expectation factors, other satisfaction factors have also been developed:
Figure 2.1.2: Diagram of customer satisfaction factors
Service quality and Website quality
Service quality significantly influences customer satisfaction, as highlighted by numerous researchers (Parasuraman et al., 1988) Parasuraman (1985) identified ten key dimensions for assessing service quality: reliability, responsiveness, competence, access, courtesy, communication, credibility, security, customer understanding, and tangibles.
1 Reliability means that the firm performs the service right in the first time and honors its promises: accuracy in billing, keeping records correctly, performing the service at promised quality on time…
2 Responsiveness concerns the willingness, readiness and timeliness of employees to provide service: giving quick answer, prompt service…
3 Competence means possession of the required skills and knowledge to perform the service
4 Access involves approachability and ease of contact to the service
5 Courtesy involves politeness, respect, consideration and friendliness of contact personnel (receptionists, telephone operators, sales forces)
6 Communication means keeping customers informed in language they can understand and listen to them For example, the firm should increase level of sophistication with a well-educated customer and speaking plainly with a less- educated people
7 Credibility concerns trustworthiness, believability and honesty
8 Security is the freedom from danger, risk or doubt: physical safety, financial security and information confidentiality
9 Understanding the customer involves making efforts to understand customers’ needs: understanding customers’ demand, recognizing regular customers, offering customized options…
10 Tangibles include the physical evidence of the service: physical facilities, appearance of personnel, physical representation of the service, tools or equipment…
In 1988, ten dimensions of service quality were refined to five key attributes—tangible, reliability, responsiveness, assurance, and empathy—through factor analysis, leading to the creation of the widely used 22-item SERVQUAL survey Building on this foundation, MinJoon J and Shaohan C (2009) identified ten dimensions specifically for assessing Internet banking service quality: reliability, responsiveness, competence, courtesy, credibility, access, communication, understanding customers, collaboration, and continuous improvement While the first eight dimensions were established by Parasuraman et al (1985), the last two were uniquely developed by MinJoon J and Shaohan C (2009).
Liu and Arnett (2000) identified four key factors for evaluating website quality: system use, system design quality, and playfulness Similarly, Barnes and Vidgen (2000) highlighted four additional factors: functionality, content, service, and attractor Furthermore, Jayawardhena and Foley (2000) emphasized that to improve customer satisfaction in Internet banking, critical assessment should focus on download speed, content, design, interactivity, navigation, and security.
Internet banking website Minjoon J and Shaohan C(2009) proposed six dimensions to assess Internet quality as following:
Research model
The research framework of this study is adapted mainly from studies of Parasuraman
In 1985, research focused on service quality, while Minjoon J and Shaohan C (2009) explored website quality Additionally, two variables—promotion and image—were incorporated to assess emotional satisfaction and promotional effectiveness within the context of Vietnamese Internet banking.
Internet banking offers unparalleled convenience, allowing customers to conduct transactions anytime and anywhere with remarkable speed This ease of access stands out as a significant advantage over traditional banking methods, making it a preferred choice for many users.
Parasuraman (1985) identified "Access" as a crucial variable in his study of service quality Consequently, it is reasonable to include convenience among the key factors influencing customer satisfaction, which can be effectively assessed through this research.
While convenience is a primary driver for Internet banking adoption, security remains a critical concern that cannot be overlooked Users are hesitant to utilize online banking services without robust security measures in place due to fears of losing private and sensitive information, as well as the threat of hackers and fraud This issue, highlighted by Parasuraman (1985), has gained significant attention in the online business sector Therefore, incorporating security as a key factor in customer satisfaction is essential for enhancing Internet banking services in Vietnam.
- Website content: is very important because it is the direct mean to make online tractions with Internet banking This factor was also investigated by Minjoon J and Shaohan C
(2009) It would be necessary to ask whether website content is one of Vietnamese customer satisfaction factor and the importance level of it comparing to other variables
Customer support is essential in Internet banking services as it provides the only human interaction within the service package This human touch fosters a natural and profound connection with customers Effective customer support hinges on two key elements: communication and responsiveness.
In Parasuraman's 1985 study on service quality, the concept of "responsiveness" plays a crucial role in understanding customer satisfaction This raises an important question: to what extent does customer support influence the satisfaction levels of users in Vietnamese Internet banking?
Promotion plays a crucial role in consumer purchasing decisions, as price is a key factor influencing the choice of products or services Customers are often inclined to opt for lower-priced options that maintain the same quality Promotions serve as a method to reduce prices, and research indicates that effective promotions significantly contribute to customer satisfaction in Internet banking Understanding the importance of promotions in relation to other satisfaction factors can provide valuable insights This concept has been supported by Philip Kotler (2001) and numerous studies in the field.
In addition to the functional benefits of a product or service, consumers often prioritize psychological factors, such as brand reputation and the lifestyle associated with a product Many individuals are inclined to select products that reflect their own image or the image they aspire to embody For instance, users of Internet banking services frequently perceive themselves as more modern, dynamic, and professional Therefore, it is essential to explore the impact of image on customer satisfaction in Internet banking This concept of image has been discussed by Philip Kotler (2001) and is supported by various research studies.
Internet banking
Online banking services originated from distance banking in the early 1980s, with the first significant implementation occurring in New York in 1981, when major banks offered home banking services However, these initial efforts lacked commercial success The breakthrough came in October 1994 when Stanford Federal Credit Union became the first institution to provide online banking to all members, leading to a global revolution that greatly benefited both banks and customers Initially, internet banking served primarily as a platform for banks to showcase their products and services With advancements in asynchronous technologies and secure electronic transactions, banks began to adopt internet banking for both transactional and informational purposes Today, registered users can perform essential banking tasks such as writing checks, paying bills, transferring funds, printing statements, and checking account balances, making internet banking a comprehensive service that offers significant advantages to both consumers and financial institutions.
Internet banking enables customers to access a variety of banking services online through the bank's website, facilitating electronic transactions It can be classified into three main levels, each offering different functionalities for users.
- The Basic Level: presenting information on different products and services offered to customers It may receive and reply to customers’ queries through email
- Simple Transactional: allowing customers to submit their instructions, applications for different services, queries on their account balances etc, but do not permit any fund-based transactions on their accounts
Fully transactional banks enable customers to manage their accounts seamlessly, facilitating fund transfers, bill payments, and subscriptions to various banking products These institutions, often referred to as "virtual" banks, also support the buying and selling of securities, enhancing the overall banking experience for users.
“Internet only” banks as not have any physical presence but offering different banking services
The PIN/TAN (Personal Identification Number/Transaction Identification Number) system is a widely used security method for Internet banking, where the PIN serves as a password for login, and TANs act as one-time passwords for transaction authentication TANs can be delivered in various ways, with the most common method being the mailing of a TAN list to customers A more secure option involves providing customers with a security token that generates time-dependent TANs using a unique secret Typically, online banking transactions utilizing the PIN/TAN system occur through SSL-secured web browsers, eliminating the need for additional encryption Another effective method for delivering TANs is via SMS, where users receive a text containing transaction details and a time-sensitive TAN.
2.4.4 The architecture of Internet banking
Most banks rely on core banking applications, which stands for "centralized online real-time exchange," to streamline their operations This system allows all bank branches to access applications from centralized data centers, ensuring that deposits are instantly reflected on the bank's main servers Customers can withdraw their deposited funds from any branch globally Key functions of core banking include managing deposit accounts, loans, mortgages, and facilitating payments through various channels such as ATMs, internet banking, and bank counters.
A core banking system is an essential back-end platform that manages daily banking transactions and updates financial records It encompasses functionalities for deposits, loans, and credit processing, while also integrating with general ledger systems and reporting tools Strategic investments in core banking systems focus on service-oriented architecture and complementary technologies, which foster flexible and scalable solutions for financial institutions.
Figure 2.4.4: The architecture of Internet banking
Source: Artifactory Open Source (www.jfrog.com)
A computer application is typically separated into three main tasks: interaction with the user, processing of transactions according to business rules and storage of business data
The three tasks can be conceptualized as distinct layers, which may operate on a single system or be distributed across multiple computers, resulting in a three-tier architecture Each layer plays a crucial role in the overall functionality and efficiency of the system.
The Presentation Layer manages front-end devices such as personal computer browsers, PDAs, mobile phones, Internet kiosks, and Web TVs It focuses on user interface aspects, including display format, color, layout, and images, while also handling crucial tasks like user authentication and session management.
The application layer is crucial for managing business logic related to data processing and transactions, serving as the interface between the presentation and data layers It handles requests from the presentation layer, connects to the data layer for information retrieval, and sends processed results back This layer ensures that all business rules are integrated into the software, significantly influencing the scalability, reliability, and performance of the services based on its architecture.
The data layer is essential for managing application data, utilizing a database to store, retrieve, and update information This database can be hosted on single or multiple servers and ensures data integrity through backup and recovery mechanisms, while also logging all transactions for accountability.
2.4.5 The advantages and disadvantages of Internet banking
A - The advantages of Internet banking
Customers can access banking services 24/7, allowing them to conduct transactions at any time, even outside of traditional working hours Additionally, they have the option to schedule transactions for a specific time in the future.
With the advancement of 3G technology, customers can now access banking services from virtually anywhere, including their homes, offices, or even cafés, as long as they have an Internet connection This convenience of Internet banking allows users to manage their finances seamlessly, regardless of their location.
The global market has expanded significantly, allowing banks to reach potential customers from every corner of the world through their websites As a result, financial institutions now have access to a worldwide customer base, transforming the landscape of banking services.
Electronic information can be transmitted almost instantly, significantly reducing waiting times for administrative processes through the use of the Internet.
• Latest information: customers can access the latest information from bank’s website instead of slower traditional methods like mail, telephone
With the power of the Internet, banks can now accommodate thousands of customers simultaneously, unlike traditional branches that limit the number of clients able to conduct banking services at any given time This shift towards digital banking enhances transactional efficiency and accessibility for users.
• More customers understanding: banks can extract valuable knowledge from analyzing automatically-collected customer behaviors when they conduct transactions With this business intelligence, banks understanding customers more
• More cost-saving: cost to acquire a new customer decreases in long-term perspective according to many researches
B - The disadvantages of Internet banking
• Risk of privacy exposure: customers’ information might be exposed and they might get annoying advertising messages
• Risk of transaction security: banks are using more secure algorithm to protect transactional security from hackers
RESEARCH METHODOLOGY
Type of research
This research is designed to find the most important customer satisfaction factors of
Internet banking which are adopted from previous researches and considered with
Vietnamese context and to give recommendation for banks
There are four types of research: survey, experiments, observation and secondary data
The choice of research design hinges on the specific advantages and disadvantages of each type, as well as the context of the research problem Internet surveys stand out as a more cost-effective, quicker, and more adaptable option compared to traditional survey methods, offering greater convenience for researchers and participants alike.
Table 3.1: Comparison between traditional and Internet survey method
Characteristics Traditional Survey Internet Survey
Cost Costly: photocopying papers, fieldwork forces, inputting data into computer
Time Usually takes a few months Usually takes a few weeks
Flexibility Not able to adjust the content of questionnaire because interviewer team go outside for respondents’ opinions
Can adjust the content of questionnaire while on progress of collecting data (to correct a mistake…) Sampling frame Can reach out to the general public that received the questionnaire
Restricted to people with access to the Internet
Quality of data Higher thanks to face to face communication
Lower but acceptable if having methods to screen out cheating respondents
Research design
The study's variables are primarily derived from Parasuraman's (1985) research on service quality and the work of Minjoon J and Shaohan C (2009) regarding website quality Additionally, two new variables—promotion and image—are included to address emotional satisfaction and promotional effectiveness within the context of Vietnamese Internet banking The sub-variables are formulated based on information gathered from various sources, including newspapers, magazines, journals, and articles.
Descriptive statistics provide insights into respondents' profile information, current and potential product usage volumes, and the factors influencing customer satisfaction Furthermore, a T-test is employed to determine the statistical significance of differences in variable values.
DETERMINANTS OF EACH SATISFACTION FACTOR
CONVENIENCE CON CON1 You can make transactions at any time you like,
With 24/7 access to your transactional website, you can make transactions from anywhere with an internet connection, ensuring fast, accurate, and clear processing Easily review your monthly activities through an automatically generated summary statement, and reach out to our hotline available around the clock for any inquiries Enjoy the convenience of banking without the hassle of waiting in line at a bank counter Our internet banking service is certified by a renowned international security institution, requiring an additional password alongside your private one for enhanced confidentiality You can count on our hotline for support anytime and receive regular updates on best practices for transactional security, along with alerts on recent frauds.
WEB WEB1 Accessible at any time, 24/24
WEB2 Easy to use WEB3 Having friendly, nice and professional design WEB4 Sufficient in data content
WEB5 Having continuously updated information WEB6 Fast in transaction accomplishment
WEB7 Having confirmation notice for each done transaction CUSTOMER
Our customer service team is dedicated to providing prompt support through a free hotline for any issues you may encounter We prioritize polite and gentle communication while consulting with customers to identify the root causes of their concerns, ensuring they do not face similar troubles in the future We keep customers informed about new internet banking products and their benefits, catering to their interests Additionally, we regularly update feedback and customer wishes regarding service quality to enhance their experience Moreover, we offer a higher savings interest rate to help customers maximize their savings.
PRM2 Discount for eating, shopping, tourism at some specific partnership stores PRM3 Raincoat, pull or helmet as a gift PRM4 Prizes in lucky draw
Internet banking offers unparalleled convenience, allowing users to conduct transactions anytime and anywhere with internet access, whether at home, in the office, or at a café.
SE Internet banking assures transactional security
(security device or one-time password besides your own private password)
A professional and efficient transactional website offers quick access to comprehensive information, ensuring users have a seamless experience Customers receive attentive support when encountering issues, fostering trust and satisfaction Promotional incentives, such as dining coupons, lucky draws, and higher savings interest rates, enhance user engagement Overall, the use of internet banking conveys a sense of professionalism, dynamism, and efficiency.
Target population
The target population encompasses the complete group of individuals, events, or items that a researcher aims to study (Robert Y C, Brian L D, Uma S, 2001) In this particular research, the target population consists of customers exhibiting specific characteristics.
Customers who currently use Internet banking
Living in one of 6 key cities of Vietnam (HoChiMinh, HaNoi, HaiPhong, DaNang, NhaTrang, CanTho)
Sample size
A sample is a subset of a population that researchers analyze to draw conclusions about the entire group (Robert Y C, Brian L D, Uma S, 2001) Selecting an appropriate sample size is crucial, with Roscoe (1975) recommending sizes larger than 30 and smaller than 500 for most studies Additionally, Tabachnick and Fidell (2001) provide a formula for determining sample size based on the number of independent variables: N > 50 + 8m, where m represents the number of independent variables.
In this study, there are 6 independent variables The sample size is calculated by applying above formula:
So, the sample size should be at least 98.
Questionnaire design
The draft questionnaire includes 14 questions divided into three sections The first section, comprising questions 1 to 5, focuses on collecting demographic information from respondents, including their gender, age, education level, and frequency of Internet banking usage The second section, consisting of questions 6 to 8, assesses the significance of six key satisfaction factors.
Internet banking offers numerous advantages, including convenience, security, informative website content, effective customer support, and strong promotional strategies To evaluate customer satisfaction regarding these factors, a five-point Likert scale is employed Additionally, the third section of the survey (questions 9 to 14) aims to pinpoint key attributes associated with each satisfaction factor, providing deeper insights into user preferences and experiences.
The draft questionnaire underwent a thorough pre-test conducted by experts with extensive experience in market research and the banking industry, as well as by friends and colleagues This initial testing phase aimed to identify unclear wording and illogical scenarios from the respondents' perspectives, ultimately enhancing the quality of the questionnaire By addressing these issues, the pre-test is expected to improve the quality of responses and increase the overall response rate.
Invitations to participate in the questionnaire were distributed via email to targeted respondents Those who utilize Internet banking services were encouraged to complete the questionnaire by clicking a link in the invitation, which directed them to the online survey website.
Data collection
A survey conducted over two weeks starting October 21, 2011, resulted in 1,000 invitation emails sent to potential respondents, yielding a 42% response rate with 420 replies Among these, 105 complete responses were received, accounting for 25% of the total responses The data was labeled, coded, and analyzed using the SPSS statistics program to generate statistical findings.
DATA ANALYSIS AND FINDINGS
Profile information of respondents
From above figure, the gender distribution female (47%)
From above figure, most respondents are in the age of 25 respondents are in the age of 18
Respondents who are over 45 years old are very few (1%).
CHAPTER 4: DATA ANALYSIS AND FINDINGS
This chapter analyzes the collected data by using descriptive analysis each result of variables data
Gender distribution gender distribution of respondents is quite equal
: Age group distribution most respondents are in the age of 25 – 34 (78%) respondents are in the age of 18 – 24 About 9% of respondents are 35
Respondents who are over 45 years old are very few (1%)
This chapter analyzes the collected data by using descriptive analysis and T-test Some is quite equal: male (53%) and
24 About 9% of respondents are 35 – 45 years old
Figure 4.1.3: Distribution of educational level
From above figure, most of respondents respondents who studied at college and the ones who followed master are equal (11%) There are almost no respondents under college
From above figure, more than a half of respondents access Internet banking within a week
(56%) One-fifth of them accesses within a month banking within 2 months and 10% of them uses less frequently than 2 months.
In summary of profile information part the age of 25 – 35, at university educational level and once in a month This result is
The educational distribution among respondents reveals that a significant majority, 73%, have attained a university degree Meanwhile, 11% of participants have completed college, and an equal percentage holds a master's degree Notably, there is a minimal presence of individuals with education below college level or at the doctoral level, each comprising only 1% of the respondents.
Over half of the respondents utilize Internet banking at least once a week, while 21% access it monthly In contrast, only 12% use Internet banking within a two-month period, and 10% engage with it less frequently than every two months The gender distribution among respondents is balanced, with most holding a university education, indicating a significant inclination towards Internet banking usage These findings align closely with the Nielsen report from 2010.
11% high school college university master doctor
56% within a week within a month within 2 months longer
The number of respondents who studied at college and the ones who followed master are equal (11%)
(1%) more than a half of respondents access Internet banking within a week
Only 12% of them use Internet banking within 2 months and 10% of them uses less frequently than 2 months equal in gender distribution, in use Internet banking consistent with report of Nielsen (2010).
Usage volume of current and potential products
Figure 4.2.1: Usage volume of current products
The next is the payment of water, electric, telephone due to between suppliers and banks The lowest one is online term deposit customers are aware of it
Customers often express interest in various financial products, including term deposits and credit loans However, the premature termination of term deposits before maturity and the differing expectations surrounding credit loans highlight the complexities of customer demand Understanding these differences is crucial for aligning product offerings with customer needs and enhancing overall satisfaction.
In summary, Internet banking customers are statement services In the
Termination of term deposit before maturity urrent and potential products volume of current products
About Internet banking services, domestic transfers and e-statement are used
Paying for utilities such as water, electricity, and telephone services can be challenging due to the limitations imposed by suppliers and banks Among these options, online term deposits tend to have the lowest rates, primarily because many customers are not familiar with this financial product.
Usage volume of potential products
Customers often prioritize credit loans when considering financial products, as these loans allow for the early termination of term deposits and offer the flexibility of a revolving credit service This flexibility enables borrowers to repay or redraw portions of their loans as needed The varying expectations surrounding these three financial products are closely tied to the specific demands and preferences of customers.
In summary, Internet banking customers are mostly using domestic transfers and e
In the future, they are expecting for online credit loan
Domestic transfers Term deposit E-statement Water, electric, telephone payment
Termination of term deposit before maturity
Revolving credit loan statements are among the most commonly used financial documents, primarily due to the limited availability of other loan types These loans offer borrowers the flexibility to repay or redraw portions of the loan as needed The varying expectations across three loan products are closely tied to customer demand, with a notable emphasis on domestic transfers and electronic loans.
Determinants of customer satisfaction
Figure 4.3: Customer satisfaction determinants ustomer satisfaction
SA CON Internet banking is very convenient transactions at anytime, anywhere as long as you have Internet access like at home, company, café )
SE Internet banking assures transactional
(security device or one-time password besides your own private password)
WEB The transactional website is professional, fast, sufficient information
CUS Be supported carefully when facing troubles
PRM Be promoted (eating coupon, lucky draw, higher saving interest rate…)
IMG Internet banking usage gives me a professional, dynamic and efficient
Internet banking offers unparalleled convenience, allowing users to conduct transactions anytime and anywhere with internet access, whether at home, in the office, or at a café It ensures transactional security through features like time-sensitive passwords, providing a professional and fast service Additionally, users can enjoy benefits such as eating coupons, lucky draws, and higher returns, enhancing their overall banking experience.
Internet banking usage gives me a feeling of professional, dynamic and efficient
Table 4.3.1: T-test for customer satisfaction determinants
The analysis reveals that only the significance value for pair 3 is above 0.05, indicating that the difference in customer satisfaction regarding security and website content is not statistically significant This suggests that both factors hold equal importance in customer satisfaction In contrast, the differences in satisfaction levels for the other variables are statistically significant.
Table 4.3.2: T-test for Likert scale
Using a five-point Likert scale, a T-test was performed with a test value of 3, revealing a Sig (2-tailed) value for customer support of less than 0.05, indicating that customer support is a significant factor in customer satisfaction Additionally, as shown in Table 4.3.1, factors such as convenience, image, security, and website content also contribute to customer satisfaction In contrast, promotion does not significantly influence satisfaction in Internet banking.
Vietnam because its Sig (2-tailed) value is not less than 0.05
In summary, the key determinants of customer satisfaction in Internet banking include convenience as the most significant factor, followed by the bank's image Security and website content rank third, while customer support is the fourth most important factor Promotion, however, is considered the least influential aspect of customer satisfaction in this context.
In order to improve the level of customer satisfaction of Internet banking, banks should try to satisfy their customers more on matters of convenience, image, security and website content
The most important factors of customer satisfaction have been identified above In turn, for each customer satisfaction factor, key determinants of each are also identified by the following part.
Determinants of each customer satisfaction factor
As mentioned above, customer content, customer support, promotion and image For each satisfaction of it are also identified respectively.
You can make transactions at any time you
You can make transactions at any where as long as you have Internet access to the transactional website Transactions are finished fast, correctly and
You can easily check your past activities in a month by a summary statement sent automatically Hot-line is available 24/24 for your any query
To enhance customer satisfaction, banks should prioritize convenience, security, website content, customer support, promotions, and overall image By minimizing the need for customers to visit bank counters and wait in line, financial institutions can significantly improve the customer experience Each of these satisfaction factors plays a crucial role in meeting customer expectations and fostering loyalty.
CON CON1 You can make transactions at any time you like,
CON2 You can make transactions at any where as long as you have Internet access to the transactional website
CON3 Transactions are finished fast, correctly and clearly
CON4 You can easily check your past activities in a month by a summary statement sent automatically
CON5 Hot-line is available 24/24 for your any query
CON6 You do not have to waste time counter and queuing
You can make transactions at any time you like, 24/24
You can make transactions at any where as long as you have Internet access to the transactional website
Transactions are finished fast, correctly and clearly
You can easily check your past activities in a month by a summary statement sent automatically line is available 24/24 for your any query
You do not have to waste time for coming to bank counter and queueing are convenience, security, website content, customer support, promotion and image For each satisfaction factor, determinants
You can make transactions at any time you like,
With internet access, you can conduct transactions anytime and anywhere on the transactional website These transactions are completed quickly and accurately, ensuring clarity Additionally, you receive an automatic monthly summary statement for easy tracking of your past activities Customer support is available 24/7 for any inquiries, eliminating the need to waste time visiting a bank.
Table 4.4.1: T-test for determinants of convenience
Because values of Sig (2-tailed) of all pairs are less than 0.05, there are 3 statistically significant groups: (CON1, CON2); (CON3, CON4); (CON5, CON6)
From above figure and T-test analysis, key determinants of convenience are (CON1,
Customers can make transactions at anytime
Customer can make transactions at anywhere as long as they have Internet access to the transactional website
In summary, customers will highly satisfy with convenience of the service if it enables them to make transaction at anytime and anywhere
SECURITY SE SE1 Beside your private password, a transaction requires one other password to increase confidentiality
SE2 A famous international institution about security certifies your Internet banking service
SE3 You are supported anytime from available hot-line for any troubles
SE4 You are updated frequently about best practices on transactional security and are warned with recent frauds
Table 4.4.2: T-test for determinants of security
Because value of Sig (2 significant groups: (SE1); (SE2, SE3, SE4).
Customers are always supported at a
There are frequently updated best practices against recent frauds.
Customers are more likely to feel secure and satisfied with a service that offers certification from a reputable international institution, provides 24/7 support for any inquiries, and implements frequent best practices to combat recent fraud trends.
Beside your private password, a transaction requires one other password to increase confidentiality
A famous international institution about security certifies your Internet banking service
You are supported anytime from available hot line for any troubles
You are updated frequently about best practices on transactional security and are warned with recent frauds
The determinants of security were analyzed using a T-test, revealing that the significance level (2-tailed) for pair 1 is below 0.05 This indicates the presence of two statistically significant groups: (SE1) and (SE2, SE3, SE4) Consequently, these factors are identified as the key determinants of security.
A famous international institution certifies the security of the service
Customers are always supported at anytime from available hot
There are frequently updated best practices against recent frauds.
Customers are more likely to feel secure with a service that offers certification from a reputable international institution, provides 24/7 support for any inquiries, and regularly implements best practices to combat recent fraud trends.
Beside your private password, a transaction requires one other password to increase confidentiality
A famous international institution about security certifies your Internet banking service
You are supported anytime from available hot- line for any troubles
You are updated frequently about best practices on transactional security and are warned with recent frauds
, there are 2 statistically determinants of security are (SE2, SE3, SE4): he service nytime from available hot-line
There are frequently updated best practices against recent frauds
Customers are more likely to feel secure with a service that offers certification from a reputable international institution, a 24/7 hotline for inquiries, and regular updates on best practices to combat recent frauds.
Figure 4.4.3: Determinants of website content
Having friendly, nice and professional design
Fast in transaction accomplishment Having confirmation notice for each done
WEB WEB1 Accessible at any time, 24/24
WEB3 Having friendly, nice and professional design
WEB4 Sufficient in data content
WEB5 Having continuously updated information
WEB6 Fast in transaction accomplishment
WEB7 Having confirmation notice for each done transaction
Having friendly, nice and professional design
Having confirmation notice for each done transaction
Accessible at any time, 24/24 Having friendly, nice and professional design
Having continuously updated information Fast in transaction accomplishment
Having confirmation notice for each done transaction
Table 4.4.3: T-test for determinants of website content
Based on values of Sig (2-tailed) of all pairs are less than 0.05, there are 3 statistically significant groups: (WEB1, WEB6, WEB7); (WEB2, WEB4, WEB5); (WEB3)
From above figure and T-test analysis, key determinants of website content are (WEB1,
Having confirmation notice for each done transaction
In summary, customers will highly satisfy with website content of the service if it is accessible at anytime, each transaction performs fast and with confirmation notice
CUS CUS1 Having support from free hot-line and fast for any troubles
CUS2 Communicating politely and gentle
CUS3 Consulting the reason and solution for customers in order not to face the same trouble in future
CUS4 Notify new Internet banking products and their benefits that a customer would care about
CUS5 Update feedbacks and wishes of customers about service quality on a regular basis
Figure 4.4.4: Determinants of customer support
Table 4.4.4: T-test for determinants of customer support
Having support from free hot any troubles
Consulting the reason and solution for customers in order not to face the same trouble in future
Notify new Internet banking products and their benefits that a customer would care about
Update feedbacks and wishes of customers about service quality on a regular basis
Determinants of customer support test for determinants of customer support value of Sig (2-tailed) is less than 0.05, there are 2 statistically significant groups:
(CUS1, CUS5, CUS3); (CUS2, CUS4) and T-test analysis, key determinants of customer support are free hot-line for any troubles
Consulting the reason and solution for future experiences
Collecting regular feedback about the service quality
Having support from free hot-line and fast for any troubles
Consulting the reason and solution for customers in order not to face the same trouble in future
Notify new Internet banking products and their benefits that a customer would care about
Update feedbacks and wishes of customers about service quality on a regular basis statistically significant groups: tomer support are (CUS1,
Customers will be highly satisfied with the exceptional customer support, which includes a fast and free hotline for inquiries, regular collection of feedback, and proactive consultation to address concerns and enhance future experiences.
Table 4.4.5: T-test for determinants of promotion
Discount for eating, shopping, tourism at some specific partnership stores
Raincoat, pull or helmet as a gift
To ensure high customer satisfaction with the support services, it is essential to provide a dedicated line for queries, consistently collect feedback from customers, and offer consultations to address concerns and improve future experiences.
PRM PRM1 Higher saving interest rate
PRM2 Discount for eating, shopping, tourism at some specific partnership stores
PRM3 Raincoat, pull or helmet as a gift
PRM4 Prizes in lucky draw
Determinants of promotion test for determinants of promotion
Discount for eating, shopping, tourism at some specific partnership stores
Raincoat, pull or helmet as a gift
Prizes in lucky draw function of the service if line available for query, collection of regular feedback from customers
Discount for eating, shopping, tourism at some Raincoat, pull or helmet as a gift
Because values of Sig (2 groups: (PRM1, PRM2); (
Discount for eating, shopping, tourism at some specific
In summary, customers will highly satisfy with promotion of the service if it offers higher saving interest rate and discount for eating, shopping, tourism at stores
Figure 4.4.6: Determinants of image of Sig (2-tailed) are less than 0.05, there are 2 statistically signi
); (PRM3, PRM4) and T-test, key determinants of promotion are (PRM1, saving interest rate
Discount for eating, shopping, tourism at some specific partnership stores
In summary, customers will highly satisfy with promotion of the service if it offers higher saving interest rate and discount for eating, shopping, tourism at some specific partnership
In summary, customers will highly satisfy with promotion of the service if it offers higher some specific partnership
Table 4.4.6: T-test for determinants of image
Because value of Sig (2-tailed) is less than 0.05, there are 2 statistically significant groups:
From above figure and T-test analysis, key determinants of image (psychological satisfaction) are (IMG1, IMG2):
In summary, customers will highly satisfy with image of the service if it is communicated as symbols of “modern” and “dynamic”.
CONCLUSION AND RECOMMENDATION
Conclusion
The key determinants of customer satisfaction of Internet banking in Vietnam are found as following:
The top three most important satisfaction factors are (1) convenience, (2) image,
The less important factors are customer support and promotion
The key determinants of each satisfaction factor of Internet banking in Vietnam are found as following:
In terms of convenience, key determinants are (1) enabling customers to make their transaction at anytime and (2) anywhere
In terms of security, key determinants are (1) certification from a famous international institution and (2) available 24/24 hot-line for any queries
In terms of website content, key determinants are (1) be accessible at anytime, (2) each transaction performs fast and (3) having confirmation notice
Effective customer support hinges on three key factors: the availability of a fast and free hotline for inquiries, the regular collection of customer feedback, and the proactive consultation of reasons and solutions to enhance future experiences.
In terms of promotion, key determinants are (1) higher saving interest rate and (2) discount for eating, shopping, tourism at some specific partnership stores
In terms of image, key determinants are (1) modern and (2) dynamic.
Recommendation for banks to improve their customer satisfaction
To enhance overall satisfaction, it is crucial to focus on the most impactful factors identified in the research The three primary factors that significantly influence satisfaction are convenience, image, and security, with website content being equally important as security.
In turn, to improve each satisfaction factor, key determinants of each are selected appropriately Based on this philosophy and research findings, two strategic recommendations are proposed:
To achieve optimal customer satisfaction, banks must cultivate an image of Internet banking that is both "modern" and "dynamic." This branding should be consistently reflected across all communications and customer interactions It is essential for banks to actively promote Internet banking as a contemporary and vibrant channel for banking services, thereby enhancing awareness and engagement among customers.
To achieve the highest level of customer satisfaction, banks must ensure that their transactional websites and telephone hotlines are accessible 24/7, with transactions processed swiftly and accompanied by confirmation notices Implementing a confirmation notice feature for every Internet banking service is essential, alongside enhancing software through improved algorithms, software engineering models, and performance measurement tools Additionally, banks should upgrade their telephone lines to support broader bandwidth and higher voice quality, while also establishing multiple backup lines It is crucial for banks to display security certifications from reputable international institutions on their transactional websites Finally, having a robust backup plan for electricity systems and Internet network devices, including servers, routers, switches, hubs, databases, and domain names, is vital for maintaining service reliability.
Limitation of the study and future suggestion
The number of respondents in this research might not be large enough to represent the whole research population Therefore, it could cause some deviations in the result
The research variables selected for this study are derived from prior international research and the current landscape of Internet banking in Vietnam Consequently, there is a possibility that not all factors influencing customer satisfaction with Internet banking usage are addressed in this research.
Future research should focus on larger-scale studies that incorporate specific variables relevant to the Vietnamese market An intriguing area of exploration would be to analyze customer behaviors and satisfaction levels within a single bank, allowing for the development of tailored strategies that cater specifically to that institution's needs.
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Welcome you to our survey about Internet banking!
This survey will take around 5-10 minutes
SR: single response (respondents can choose 1 choice only)
MR: multiple response (respondents can choose 1 or more choices)
3 How is your level of education?
High school 1 College 2 University 3 Master 4 Doctor 5
4 Do you use Internet banking service (also be called e-banking) of a bank?
5 How often do you use Internet banking?
SR everyday 1 once per 2-3 days 2 once a week 3 once per month 4 once per 2 months 5 once per 3 months 6 once per 6 months 7
6 Which products are you using of Internet banking?
7 Do you wish to use more Internet banking products as following?
Termination of term deposit before maturity date
8 How do you feel when using Internet banking?
Internet banking offers unparalleled convenience, allowing users to conduct transactions anytime and anywhere with internet access, whether at home, in the office, or at a café.
Internet banking assures transactional security (security device or one-time password besides your own private password) The transactional website is professional, fast, sufficient information 1 2 3 4 5
Be supported carefully when facing troubles 1 2 3 4 5
Be promoted (eating coupon, lucky draw, higher saving interest rate…) 1 2 3 4 5 Internet banking usage gives me a feeling of professional, dynamic and efficient 1 2 3 4 5
9 According to you, website quality is…
3 Having friendly, nice and professional design
7 Having confirmation notice for each done transaction
10 According to you, good customer support is…
1 Having support from free hot-line and fast for any troubles
Consulting the reason and solution for customers in order not to face the same trouble in future
Notify new Internet banking products and their benefits that a customer would care about
5 Update feedbacks and wishes of customers about service quality on a regular basis
11 Which kinds of promotion do you prefer from Internet banking?
2 Discount for eating, shopping, tourism at some specific partnership stores
3 Raincoat, pull or helmet as a gift
12 How do you feel when using Internet banking?
13 According to you, convenience of Internet banking is presented at…
1 You can make transactions at any time you like, 24/24
You can make transactions at any where as long as you have Internet access to the transactional website
3 Transactions are finished fast, correctly and clearly
You can easily check your past activities in a month by a summary statement sent automatically
5 Hot-line is available 24/24 for your any query
6 You do not have to waste time for coming to bank counter and queuing
14 According to you, security of Internet banking is presented at…
Besides your private password, a transaction requires one other password to increase confidentiality
2 A famous international institution about security certifies your Internet banking service
3 You are supported anytime from available hot-line for any troubles
You are updated frequently about best practices on transactional security and are warned with recent frauds
THANK YOU FOR PARTICIPATING IN THE SURVEY!
Appendix 2: Advanced comparison of determinants of Convenience
Appendix 3: Advanced comparison of determinants of Security
Appendix 4: Advanced comparison of determinants of Website Content