Enhancement of customer satisfaction on services quality at bidv ninh binh branch

MEIHO UNIVERSITY Graduate Institute of Business and Management MASTERS THESIS Enhancement of customer satisfaction on services quality at BIDV Ninh Binh Branch In partial fulfillment of the requirements for the degree of Masters of Business Administration Advisor: Ron Chuen Yeh Co-advisor: Tu Thuy Anh Graduate Student: Dinh Thuy Giang November, 2018 Meiho University, Graduate Institute of Business and Management Master Thesis Committee Signature Form Student: Dinh Thuy Giang Title of Master Thesis: Enhancement customer satisfaction on services quality at BIDV Ninh Binh Branch Accept of the Master Degree qualification by Members of Oral Committee Signature of Committee: ………………………………………………… ………………………………………………… ………………………………………………… Primary Advisor: Chairman: Oral Defense Date: ACKNOWLEDGMENTS Firstly, I would like to show my appreciation to my coworkers at BIDV – Ninh Binh Branch, especially Operation Department where I am currently working as a Teller This research would not have been completed without their kind help I also want to present my thankfulness to my direct manager who gave me a lot of support and encouragement to overcome the restriction of time and difficulties that I have in my office job I not only thank her for recommending me to choose the topic for my thesis, but also for her permission to use the data system of the bank to serve for my research Last but not least, Iwould like to send my big thank to my advisors - Dr Ron Chuen Yeh and Dr Tu Thuy Anh, who gave me a lot of help right at the beginning stage of this thesis All of them gave me priceless advice and valuable guidance during the period of carying the thesis All in all, I would like to thank all those who supported and gave me a great encouragement to finish this thesis ABSTRACT With the development of global economy, banking industry in general and banking industry in Vietnam in particular have expressed changing steps to meet the growing demand of customers With a population of more than 90 thousand people, Vietnam has advantages in retail banking development such as a low starting point, a high rate of young population, high internet speed and popularity In addition, citizens are knowledgeable, they care and update quickly with great technical advances in terms of information and communication technology, and the income per capita continues to improve, although growing speed is slower than that of the previous decade BIDV is known as one of the oldest Joint Stock Commercial banks in Vietnam, it was established in 1957 By December 31st 2017, BIDV continued to be the largest joint-stock commercial bank in terms of total assets in banking system of Vietnam Understanding the trend, BIDV also tried its hand at promoting and strengthen retail operations, with the slogan of "Customer center" The bank always strives for completing themselves and meeting the various needs of customers To be one of BIDV staff, the researcher has done this thesis for the purpose to gain the factors which affect Customers satisfaction of BIDV The research was created by quantitive method, through creating research model, building quesionare and set up the survey formal It is obvious that ROPMIS is a good instrument to define service quality and the relationship between it and customer satisfaction in banking market of Vietnam The model of ROPMIS indicates that quality service is made out of from six factors: resources, service outcome, process, management, image of company and social responsibility The thesis collected data to analyze and synthesis from surveying 300 customers of BIDV Ninh Binh Branch by questionaire, and researcher get back fully 300 acceptable replies At the end of the thesis, there were recommendations and solutions given to improve customer satisfaction and boosting customer loyalty There also are some limitations during time conducting the thesis, due to limited resources and time More research needs to carry out in the future to fulfill this study result Keywords: Marketing, banking, retail, service quality, customer satisfaction, BIDV, Vietnam Contents ACKNOWLEDGMENTS ABSTRACT Tables Figures Chapter Introduction 1.1 Motivation 1.2 Purpose 1.3 Research Scope and Limitations Chapter Literature Review 2.1 Customer Satisfaction 2.2 Service quality 14 2.2.2 Several models and indicators of service quality assessment .18 Chap Research Methodology 28 3.1 Methodological consideration 28 3.2 Quantitative method 28 3.2.1 Research Model .28 3.2.2 Design of questionnaire 30 3.2.3 Selection of sample 31 3.3 Conclusion .32 Chapter Results and Analysis .34 4.1 Demographic analysis .34 4.1.1 Descriptive statistics 34 4.2.2 Outcome 37 4.2.3 Process 37 4.2.4 Management 38 4.2.5 Image 38 4.2.6 Social responsibility .39 4.2.7 Customer satisfaction .39 4.3 Reliability test (Cronbach’s alpha) 40 4.3.1 Resources .40 4.3.2 Outcome 40 4.3.3 Process 41 4.3.4 Management 41 4.3.5 Image 42 4.3.6 Customer satisfaction .42 4.4 Exploratory factor analysis .43 4.5 Regression model 46 4.5.1 Assessing the compatibility of the regression model 46 4.5.2 Coefficient analysis .47 Chapter Recommendation and Conclusion .50 5.1 Conclusion 50 5.2 Core solutions 51 5.2.1 Improving image factors .51 5.2.2 Improve social responsibility 56 5.3 Supporting solutions 59 5.3.1 Developing facilities and informatics technology 59 5.3.2 Developing committed criteria of service quality at BIDV Ninh Binh Branch .60 5.3.3 Improving safety in banking transaction 61 5.3.4 Personalize relationship with customers 62 References 64 Appendix 68 Tables Table 3.1: Distribution of questionnaire items .31 Table 4-1 Personal information of respondents .34 Table 4.2: Descriptive statistic analysis - Factor R .37 Table 4.3: Descriptive statistic analysis - Factor O .37 Table 4.5: Descriptive statistic analysis - Factor M 38 Table 4.6: Descriptive statistic analysis - Factor I 38 Table 4.7: Descriptive statistic analysis of Social responsibility 39 Table 4.8: Descriptive statistic analysis of Customer satisfaction 39 Table 4.9: Descriptive statistic analysis 39 Table 4.10: Reliability score of the resources dimension .40 Table 4.11: Reliability score of the outcome dimension 41 Table 4.12: Reliability score of the process dimension 41 Table 4.13: Reliability score of the management dimension 41 Table 4.14: Reliability score of the image dimension 42 Table 4.15: Reliability score of customer satisfaction 42 Table 4.16: Factor analysis result 44 Table 4.17: Summary of model .46 Table 4.18: Regression analysis of service quality model 47 Table 4.19 Hypothesis testing results .49 Table 5.1 Level of service quality at BIDV Ninh Binh Branch .51 Figures Figure 1.1 Overview BIDV revenue Figure 2.1: First and second level drivers of overall customer satisfaction 10 Figure 2.2: Gronroos’ model 20 Figure 2.3: Gaps in SERVQUAL model 22 Figure 2.4: SERVPERF model 23 Figure 2.5: Original ROPMIS model .25 Figure 3.1: The chosen research model 29 Figure 4-1 Descriptive Statistics on Sample chart for Income variable 35 Figure 4-2 Descriptive Statistics on Sample chart for Gender variable 35 Chapter Introduction 1.1 Motivation The banking industry is a giant sector of business and finance that has existed in human advancement in some form for thousands of years With the globalization in the world today, the banking industry plays an integral role in financial relations, as it is the biggest and most popular means for investing, borrowing, and storing money These days, it is easy to catch sight of a bank in any cities across the world due to its popularity, and all of them are usually heavily regulated by their governments in order to prevent corruption from happening and protect the money of the general public Vietnam, like the other countries of Asia, has experienced a period of growth at a slower speed Apart from the manufacturing and agricultural sectors, the period of slower growth is also causing an impact negatively on other industry sectors, and the banking sector is no exception With lower credit growth, tighter margins and higher levels of nonperforming loans, it is evident that banks are operating in a challenging environment The banking and financial system has been in a time of intense difficulty because of the economic crisis in 2008 - the worst crisis financially since the Great Depression of the 1930s, “exposing weaknesses deeply rooted in the political economy of the state” (Kerry B.Collison, Asia News, August, 2013) It is obvious that further reform needs to be taken in Vietnam’s banking sector but the core problem runs deeper While the growth of economy has continued to increase, at percent or more, the competitive sectors and external reserves as banking and finance experienced an strong increase Vietnam’s growth is probably unlikely to be realized without taking any deeper reforms