NATIONAL ECONOMIC UNIVERSITY BUSINESS SCHOOL E BBA PROGRAM CUSTOMER SATISFACTION ASSESSMENT FOR QUALITY OF CUSTOMER SERVICE AT THINH VUONG COMMERCIAL JOINTSTOCK BANK Bachelor of Business Administratio[.]
NATIONAL ECONOMIC UNIVERSITY BUSINESS SCHOOL E-BBA PROGRAM CUSTOMER SATISFACTION ASSESSMENT FOR QUALITY OF CUSTOMER SERVICE AT THINH VUONG COMMERCIAL JOINTSTOCK BANK Bachelor of Business Administration in English (E-BBA) Thesis Supervisor : Associate professor Ph.D Vu Thanh Hung Student : Nguyen Tu Anh Class : E-BBA 7A HANOI, 2019 ACKNOWLEDGEMENT This thesis has been completed at Vietnam Prosperity Joint Stock Commercial Bank In order to get this essay, I would like to express my sincere and deepest gratitude to Vietnam Prosperity Commercial Joint Stock Bank Lang Ha , the business department and especially to thank Mrs Minh Huyen for his direct wholeheartedly guide and help me Thanks to these valuable guidance, during the process of deploying, researching and completing the assigned topic in the best way I would like to express my sincere thanks to my teachers have directly or indirectly taught to convey useful scientific knowledge to myself in the past years and especially my instructor Ph.D Vu Thanh Hung has made valuable comments, helping me to complete this research paper I would like to send my deepest gratitude to the bank for creating all favorable conditions to help me collect data and necessary research materials related to the graduation topic easily and conveniently I would like to acknowledge the effort and valuable and enthusiastic contributions of you who have contributed their ideas and helped me to develop, investigate and collect the data In order to achieve the success of this thesis, first of all belong to the school and society, which has facilitated instruction and help for children, especially the encouragement and encouragement of the family's deep sympathy Finally, I look forward to receiving the contributions, comments and criticisms from the teachers and all readers TABLE OF CONTENTS ACKNOWLEDGEMENT ABBREVIATIONS .5 LIST OF MODEL LIST OF TABLE EXECUTIVE SUMMARY CHAPTER INTRODUCTION .9 1.1 Rationale 1.2 Research objective .10 1.3 Research question 10 1.4 Research methodology 10 1.5 Research scope 11 1.6 Report structure 11 CHAPTER 2: THEORICAL BACKGROUND ON CUSTOMER SATISFACTION TOWARD SERVICE QUALITY OF VPBANK AND RESEARCH MODEL OF CUSTOMER CARE SERVICE 12 2.1 Service, service quality and customer care 12 2.1.1 Service 12 2.1.2 Service quality 13 2.1.3 Customer care 14 2.2 Customer satisfaction 18 2.2.1 Defination of customer satisfaction 18 2.2.2 Factor affect customer satisfaction 19 2.3 The relationship between quality of service and customer satisfaction 20 2.4 Some previous model of facrtor affecting customer satisfaction 20 2.4.1 Gronroos model 20 2.4.2 Fingure of antecedents and mediator model .22 2.4.3 Servqual model 22 2.4.4 Customer satisfaction index model 23 2.5 Proposed research framework of factor effecting customer satisfaction .24 2.6 Scale of quality customer service according to the SERVQUAL model 26 CHAPTER CONCLUSION .29 CHAPTER 3: CUSTOMER SATISFACTION AT VPBANK .30 3.1 VPBank Overview .30 3.1.1 Formation and development history 30 3.1.2 Network system 33 3.2 Overview about VPBank Langha 35 3.2.1 Field of activity 35 3.2.2 Main product 36 3.2.3 Business situation .37 3.2.4 Business segment 39 3.2.5 Company structure 42 3.2.6 Personnel structure 43 3.2.7 SWOT analysis 44 3.3 Customer satisfaction assessment on VPBank’s service .47 3.3.1 Sample description 47 3.3.2 Evaluate the scale by Cronbach Alpha coefficient analysis method 55 3.3.3 Evaluate scale by EFA discovery analysis method 59 3.3.4 Testing the scale set by regression analysis .63 3.4 Current status of customer care at VPBank 68 3.4.1 General policy on customer care at VPBank 68 3.4.2 Particular processes and activities 69 3.4.3 Activities of organization 72 3.4.4 Influent factors 74 3.5 Strength and weakness in customer care policies 75 3.5.1 Strength .75 3.5.2 Weakness 75 3.5.3 Cause of weakness 76 Chapter conclusion .76 CHAPTER 4: SOLUTION TO ENHANCE CUSTOMER SATISFACTION FOR VPBANK CUSTOMER CARE SERVICE AT LANG HA 77 4.1 Development orientation of VPBank Lang Ha 77 4.2 Solution to enhance quality of customer care of VPBank Lang Ha 77 4.2.1 Solution to enhance competence of employee 78 4.2.2 Solution to enhance employee motivation .80 4.2.3 Investment in facilities solution 82 4.2.4 Enhancing technology solution 83 Chapter conclusion .86 CONCLUSION 87 REFERENCE 88 Appendix 90 Appendix 2: SPSS results 93 ABBREVIATIONS EFA Exploratory Factor Analysis KMO Kaiser – Meyer – Olkin VIF Variance inflation factor SPSS Statistical Package for the Social Sciences Sig Significance VPBank Vietnam Prosperity Commercial Joint Stock Bank LIST OF MODEL Model 2.1: Service quality model by Lassar & ctg(2000) 16 Model 2.2: Gronroos Model .21 Model 2.3: Antecedents Model of Service Quality 22 Model 2.4: Parasuraman et al Model 23 Model 2.5: VCSI theory model 24 Model 2.6: Proposed research model 26 Model 3.1: Company structure 42 LIST OF FIGURE Figure 3.1: Gender of respondents .48 Figure 3.2: Age of respondents 48 Figure 3.3: Occupation of respondents .49 Figure 3.4: income of repondents .50 LIST OF TABLE Table 2.1: scale of quality customer service according to SERVQUAl model 27 Table 2.2 Scale of customer satisfaction according to Lassar & Ctg (2000) .28 Table 3.1 Mobilization situation of VPBank Lang Ha branch 37 Table 3.2 Lending situation of VPBank Lang Ha Branch 38 Table 3.3 Business result of VPBank Lang Ha 38 Table 3.4 personnel structure of VPBank Lang Ha 43 Table 3.5: Descriptive statistic 50 Table 3.6: Descriptive Statistics 52 Table 3.7: Frequency of dependent variable Q1 53 Table 3.8: Frequency of dependent variable Q2 53 Table 3.9: Frequency of dependent variable Q3 54 Table 3.10: Cronbach alpha coefficient of customer service scale at the counter under SERVQUAL model 56 Table 3.11: Cronbach alpha coefficient of customer service scale at the counter under SERVQUAL model for responsibility variable .57 Table 3.12: Cronbach alpha coefficient of customer service scale at the counter under SERVQUAL model for empathy variable .58 Table 3.13: Cronbach alpha coefficient of customer service scale at the counter under SERVQUAL model for tangibility variable .58 Table 3.14 Cronbach alpha coefficient of the scale component reflects customer care service 59 Table 3.15: KMO and Bartlett's Test 60 Table 3.16: Rotated Component Matrixa 61 Table 3.17: KMO and Bartlett's Test 62 Table 3.18: Factor analysis of EFA of sub-variables in the scale reflects the Bank's customer care service 62 Table 3.19: Correlations .64 Table 3.20 Assumption of regression model .65 Table 3.21: Model Summaryb .65 Table 3.22: ANOVAa 65 Table 3.23: Coefficientsa 66 Table 3.24: gift giving activities of Vpbank 71 EXECUTIVE SUMMARY The globalization trend of the world economy has impacted significantly on the current level of competition, not only competing within a country but also expanding to neighboring areas and the world More and more domestic and foreign companies can provide the same products and services Attracting customers is vital for the existence of the business The purpose of this thesis is to study customer satisfaction with service quality components in SERVQUAL model at Vietnam Prosperity Commercial Joint Stock Bank Lang Ha branch There are many articles on this topic in the world and also in Vietnam but the author wants to clarify this and especially with the prosperous Vietnamese joint stock commercial bank This thesis addresses main issues: pointing out the current situation of customer care in VPBank, finding out factors affecting customer care status here, which factors affect most from that and solutions to improve service quality here By using quantitative research using questionnaire surveys, research shows the internal problems related to the quality of customer care and their satisfaction By referring to previous research models, the author presents a model consisting of four independent variables that strongly affect customer satisfaction: responsibility, reliability, empathy and tangibility Quantitative research methods are used in the thesis by investigating and processing data such as descriptive statistics, scale test, factor analysis, correlation analysis and regression Software supports processing is SPSS software 25.0 The questionnaire was designed with 27 questions, of which 24 questions answered the factors affecting customer satisfaction, the remaining questions reflected the quality of the bank's service The number of responses used in the study after eliminating unsatisfactory answers is 165 Currently, VPBank is expanding its network continuously, so employees need to be continuously trained to provide the best quality customer service Customer care policies of VPBank are not enough to ensure that customers feel satisfied and loyal to the bank, so the research has pointed out the most important factors to improve the quality of such services which is empathy and tangibility From there, the author gives some solutions to improve these two things The first is to improve the quality of employees, so that employees understand and empathize with customers more Next is to improve facilities and improve technology so that customers are always served by the most advanced means, creating a pleasant and convenient feeling for customers CHAPTER INTRODUCTION 1.1 Rationale The competitive situation in the banking sector is increasingly strong and fierce With the participation of many types of credit institutions such as financial companies, non-bank financial institutions, savings funds, insurance companies The degree of competition among banks more aggressive with the participation of foreign banks, foreign financial institutions that have many financial resources, technology, professional level One of the biggest challenges with today's banking system is its competitiveness With the opening of the market and the development of science and technology, in the field of banking has been the fierce competition between joint stock commercial banks, state banks and foreign banks to provide services on Vietnam financial market In a fierce competitive environment, customers are the key to the survival of the bank Banks that have a strategy to attract new customers, attract the attention and loyalty of customers, the bank will develop sustainably How to bring the best customer satisfaction is the most important issue that banks are trying to implement In addition, for retail banking, retail banking occupies an important position in the bank's business In the retail banking development process, the bank focused not only on high-income individuals but also on the middle-income segments This orientation has made the battle in the retail market more and more fierce Therefore, in order to successfully compete in the retail market, banks need to focus on improving the quality of their services, and research to find solutions to improve service quality is essential In addition, customer satisfaction will influence the creation of the system Loyal customers are essential to maintaining regular activities Bank nor does any bank guarantee that loyal customers will survive long or throughout Each customer is considered "spiritual child" This means that the bank must consider maintaining the relationship, taking care of the customer more so that they will be loyal Thus, improving service quality, improving customer satisfaction will contributing to increase competitiveness and improve business performance Topic "Customer Satisfaction Assessment for Quality of Customer Service at Thinh Vuong Commercial Joint Stock Bank" was carried out some solutions for enhancing quality service of this bank ... level of customer satisfaction for service quality at VPBank 1.3 Research question What is the specific service quality attributes affecting customer satisfaction towards service quality at VPBank... is the satisfaction of the customer or the satisfaction of customer service As the quality of service oriented towards customers, the quality of service means meeting the expectations of customers,... customers feel that the service is of low quality, dissatisfaction will arise Defination of banking service quality "Quality of service is the capacity of banking services provided by the Bank and