MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM HO CHI MINH UNIVERSITY OF BANKING HUYNH THI LAM PHUONG Factors influencing customer satisfaction with the International payment service Th[.]
MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM HO CHI MINH UNIVERSITY OF BANKING HUYNH THI LAM PHUONG Factors influencing customer satisfaction with the International payment service: The case study of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Binh Dinh Branch BACHELOR THESIS MAJOR: BUSINESS ADMINISTRATION CODE: 7340101 HO CHI MINH CITY, 2022 MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM HO CHI MINH UNIVERSITY OF BANKING HUYNH THI LAM PHUONG Factors influencing customer satisfaction with the International payment service: The case study of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Binh Dinh Branch BACHELOR THESIS MAJOR: BUSINESS ADMINISTRATION CODE: 7340101 SUPERVISOR PHAM HUONG DIEN, Ph.D HO CHI MINH CITY, 2022 i ABSTRACT Customer satisfaction plays a pivotal role in driving the success and growth of every business organization in the way that it helps generate repurchase from satisfied customers, forms strong brand loyalty as well as facilitates word-ofmouth marketing In the context of gradual economy recovery after the 4th outbreak of Covid19 in Vietnam, there is huge pressure among banks to increase their charter capital to enhance financial capacity and revenue diversification in new services Customer satisfaction is crucial because in banking industry where products are highly homogeneous, quality of service is primary factor that influence customer’s choice of bank The thesis elaborates on “Factors influencing customer's satisfaction with the International payment service: The case study of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Binh Dinh Branch” with the aim of identifying factors behind customer satisfaction in a specific area of service - International payment at a leading Vietnamese bank - BIDV, assessing level of current performance of BIDV Binh Dinh branch in each area of customer satisfaction determinants and proposing recommendations for improvement This will in turn supports the bank’s long-term growth and brand equity ii DECLARATION OF AUTHENTICITY I the undersigned declare that all material presented in this paper is my own work or fully and specifically acknowledged wherever adapted from other sources I understand that if at any time it is shown that I have significantly misrepresented material presented here, any degree or credits awarded to me on the basic of that material may be revoked I declared that all statements and information contained herein are true, correct and accurate to the best of my knowledge and belief Ho Chi Minh City, May 2022 Name Huynh Thi Lam Phuong iii ACKNOWLEDGEMENT First and foremost, the author would like to express the deepest gratitude to the dedicated supervisor Dr Pham Huong Dien for her great guidance and meaningful advices without which the thesis would not be completed In addition, throughout the process of doing research, the author has received a lot of attention and valuable support from teachers, friends and relatives Thus, the author would like to take this opportunity to send deep gratitude to: - All lecturers from Business Administration Department of Banking University based in Ho Chi Minh city who have provided favorable conditions for the author to have the opportunity to enhance knowledge of business administration as well as banking industry and sharpen practical skills during the last four years - All senior colleagues from the International payment service team at BIDV Binh Dinh for their enthusiastic help with providing necessary data for the thesis - Parents, relatives and friends for their technical and mental support Due to limited time, knowledge and research experience, the article can not avoid limitations Therefore, the author would like to receive comments from teachers to better complete her thesis next time Ho Chi Minh City, May 2022 iv Name Huynh Thi Lam Phuong TABLE OF CONTENTS CHAPTER INTRODUCTION 1.1 Research statement 1.2 Research Objectives and Questions .2 1.3 Research subject and scope 1.4 Research Methodology 1.5 Research significance .3 1.6 Structure of the thesis Summary of Chapter .4 CHAPTER LITERATURE REVIEW .6 2.1 Concept and Theory .6 2.1.1 Service 2.1.2 Service quality 2.1.3 Banking service and International payment service .8 2.1.4 Customer satisfaction 10 2.1.5 The relationship between service quality and customer satisfaction………………………………………………………….… 11 2.1.6 Customer satisfaction using international payment services 13 2.2 Previous studies on factors influencing customer satisfaction………………………………………………………………13 2.3 Research model and hypothesis 15 v 2.3.1 Knowledgeable and experienced consultant team 16 2.3.2 Tangibles .16 2.3.3 Responsiveness 16 2.3.4 Convenience 17 2.3.5 Assurance 17 2.3.6 Competitive price 17 Summary of Chapter .20 CHAPTER RESEARCH METHODOLOGY 22 3.1 Research process 22 3.2 Research design 23 3.2.1 Data collection 23 3.2.2 Designing questionnaire .23 3.3 Data analysis 26 Summary of Chapter .26 CHAPTER DATA AND SITUATIONAL ANALYSIS 28 4.1 Overview of Bank For Investment and Development of Vietnam and Bank For Investment and Development of Vietnam, Binh Dinh branch ……………………………………………………………………28 4.1.1 Bank For Investment and Development of Vietnam 28 4.1.2 Bank for Investment and Development of Vietnam, Binh Dinh branch 29 4.1.3 Main business activities 30 4.1.4 Organization of apparatus at Bank For Investment and Development of Vietnam, Binh Dinh branch 31 vi 4.2 International payment service at Bank For Investment and Development of Vietnam, Binh Dinh branch 32 4.2.1 International payment services at Bank For Investment and Development of Vietnam, Binh Dinh branch 32 4.2.2 International payment operation process at Bank For Investment and Development of Vietnam, Binh Dinh branch 35 4.3 Performance of international payment department, at Bank For Investment and Development of Vietnam, Binh Dinh branch during 2017 – 2021 37 4.3.1 Market development 37 4.3.2 Financial performance 38 4.4 SWOT analysis of customer service of the international payment at BIDV Binh Dinh branch 42 4.4.1 Strengths .42 4.4.2 Weaknesses 42 4.4.3 Opportunities 44 4.4.4 Threats .45 4.5 Survey data analysis 46 4.5.1 Customer satisfaction 47 4.5.2 Factors influencing customer satisfaction 47 Summary of Chapter .52 CHAPTER CONCLUSIONS AND RECOMMENDATIONS .54 5.1 Conclusions 54 5.2 Recommendations 56 5.2.1 Price 56 vii 5.2.2 Assurance 58 5.2.3 Responsiveness 59 5.2.4 Tangibles .61 5.2.5 Knowledgeable consultant team 62 5.2.6 Convenience 63 5.3 Research limitation and futher study 64 REFERENCES 65 Appendix 69 Appendix 72 Appendix 75 viii LIST OF ABBREVIATIONS Abbreviations Full meaning AI Artificial intelligent ATM Automatic teller machine CES Customer effort score D/A Documentary against acceptance D/P Documentary against payment FDI Foreign direct investment GSI Growth strategies international ICC International chamber of commerce IPO Initial public offering IT Information technology L/C Letter of credit NPS Net promoter score T/T Telegraphic transfer SWIFT UCP Society for Wordwide Interbank Financial Telecomunications Uniform custom and practice for documentary credits UPAS L/C Usance payable at sight letter of credit URC Uniform rules for collection VIP Very important person WTO Word Trade Organization ... of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Binh Dinh Branch? ?? with the aim of identifying factors behind customer satisfaction in a specific area of service. .. Organization of apparatus at Bank For Investment and Development of Vietnam, Binh Dinh branch 31 vi 4.2 International payment service at Bank For Investment and Development of Vietnam, Binh Dinh branch. .. Commercial Bank for Investment and Development of Vietnam (BIDV), Binh Dinh Branch? ?? with the aim of identifying factors behind customer satisfaction in a specific area of service International payment