NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL LUU VINH HIEN IMPROVING CUSTOMER SERVICE QUALITY FOR INDIVIDUAL CUSTOMERS AT VNDIRECT SECURITIES JOINT STOCK COMPANY Bachelor of Business Administration i[.]
NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL LUU VINH HIEN IMPROVING CUSTOMER SERVICE QUALITY FOR INDIVIDUAL CUSTOMERS AT VNDIRECT SECURITIES JOINT STOCK COMPANY Bachelor of Business Administration in English (E-BBA) Thesis HANOI, 2016 NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL BUSINESS SCHOOL IMPROVING CUSTOMER SERVICE QUALITY FOR INDIVIDUAL CUSTOMERS AT VNDIRECT SECURITIES JOINT STOCK COMPANY Bachelor of Business Administration in English (E-BBA) Thesis Student: Luu Vinh Hien Class: EBBA – 4A Supervisor: Dr Nguyen Quoc Duy HANOI, 2016 ACKNOWLEDGEMENT This thesis is to fulfill the requirement of English Bachelor of Business Administration (E-BBA), Business School – National Economics University (NEU Business School) Firstly, I would like to express my sincerely appreciation to my supervisor – Dr Nguyen Quoc Duy – who always gives me his dedicated guidance, instructions and valuable comments for improvement of my study throughout the whole process of this thesis Secondly, I would like to thank to all teachers and staff of NEU Business Schools, who have provided me with their knowledge and support for more than three year studying here Besides, I would like to thank VNDIRECT’s colleges, especially Mr Vu Hoang Viet and Ms Trinh Thanh Thuy, for their support and advices during my internship I would like to thank all customers who helped me conduct this survey to complete my research Their support is an important factor to the success of this thesis Last but not least, I would like to express my profound gratitude to my family and friends who have encouraged and supported me during my time studying at the E-BBA program TABLE OF CONTENT ACKNOWLEDGEMENT .1 TABLE OF CONTENT LIST OF TABLES LIST OF CHARTS LIST OF FIGURES .6 EXECUTIVE SUMMARY CHAPTER 1: INTRODUCTION 1.1 RATIONALE .9 1.2 RESEARCH OBJECTIVES .10 1.3 RESEARCH QUESTIONS 10 1.4 RESEARCH SCOPE 10 1.5 RESEARCH METHODOLY 11 1.5.1 Secondary Data .11 1.5.2 Primary Data 11 1.5.3 Data analysis 12 1.6 STRUCTURE OF THE RESEARCH 12 CHAPTER 2: THEORETICAL BACKGROUND ON THE QUALITY OF CUSTOMER SERVICES IN SECURITIES COMPANIES .14 2.1 THEORETICAL BACKGROUND OF CUSTOMER SERVICE QUALITY 14 2.1.1 The concept of customer service 14 2.1.2 The concept of customer service quality .15 2.2 THE CONCEPT OF QUALITY OF SECURITIES COMPANY 17 2.2.1 Definition of securities company 17 2.2.2 Functions of securities companies 17 2.3 MODEL FOR MEASURING CUSTOMER SERVICE QUALITY 18 2.3.1 Service quality model of Gronroos, 1984 18 2.3.2 SERVQUAL Model of Parasuraman & ctg (1985) .20 2.3.3 SERVPERF Model of Cronin and Taylor (1992) 25 2.3.4 Model of Luong Thi Mai Huong (2015) of MBA thesis “Service quality of Nha Viet Real Estate Joint Stock Company” 27 2.4 CONCEPTUAL FRAMEWORK .29 CHAPTER 3: RESEARCH METHODOLOGY .34 3.1 RESEARCH PROCESS 34 3.2 RESEARCH METHODOLOGY .35 3.2.1 Qualitative research .35 3.2.2 Quantitative research .35 3.3 DATA COLLECTION .36 3.3.1 Secondary data 36 3.3.2 Primary data 37 3.4 DATA ANALYSIS 38 3.4.1 Cronbach’s Alpha Reliability Analysis 38 3.4.2 Exploratory Factor Analysis (EFA) .38 3.4.3 Linear Regression Analysis 39 CHAPTER 4: THE RESULT OF THE RESEARCH – THE CURRENT SITUATION OF CUSTOMER SERVICE QUALITY FOR INDIVIDUAL CUSTOMERS AT VNDIRECT SECURITIES JOINT STOCK COMPANY 40 4.1 OVERVIEW OF VNDIRECT SECURITES JOINT STOCK COMPANY .40 4.1.1 Company Profile 40 4.1.2 History of Development 41 4.1.3 Functions and missions of VNDIRECT 42 4.1.4 Company Structure 44 4.1.5 VNDIRECT’s services, market and customers .44 4.2 THE ASSESSMENT OF CUSTOMER SERVICE QUALITY FOR INDIVIDUAL CUSTOMER AT VNDIRECT SECURITIES JOINT STOCK COMPANY 49 4.2.1 Research Sample Description 49 4.2.2 Respondent Profile 50 4.2.3 Cronbach’s Alpha Reliability Analysis 56 4.2.4 Exploratory Factor Analysis 59 4.2.5 Linear Regression Analysis 62 4.2.6 The current situation of customer service quality for individual customers at VNDIRECT Securities Joint Stock Company 68 4.3 CONCLUSION 75 CHAPTER 5: RECOMMENDATIONS FOR IMROVING THE QUALITY OF CUSTOMER SERVICE FOR INDIVIDUAL CUSTOMERS AT VNDIRECT SECURITIES JOINT STOCK COMPANY 78 5.1 ORIENTATIONS TO IMPROVE THE CUSTOMER SERVICE QUALITY FOR INDIVIDUAL CUSTOMERS AT VNDIRECT SECURITIES JOINT STOCK COMPANY 78 5.2 RECOMMENDATIONS AND SOLUTIONS TO IMPROVE THE CUSTOMER SERVICE QUALITY FOR INDIVIDUAL CUSTOMERS AT VNDIRECT SECURITIES JOINT STOCK COMPANY 79 5.2.1 Improving human resources and competence of staff 79 5.2.2 Improving and utilizing technology advantages 80 5.2.3 Upgrading customer database collection .81 5.2.4 Improving the Hotline and Call Center 82 5.2.5 Improving marketing strategies and creating brand image 82 5.2.6 Applying CRM system in management 83 CONCLUSION .84 REFERENCES .85 APPENDIX 1: SURVEY FORM FOR CUSTOMERS .88 APPENDIX 2: IN-DEPTH INTERVIEW QUESTIONS FOR VNDIRECT MANGAGERS .94 APPENDIX 3: DESCRITIVE STATISTICS .95 APPENDIX 4: CRONBACH’S ALPHA RELIABILITY ANALYSIS 96 APPENDIX 5: EXPLORATORY FACTOR ANALYSIS 99 APPENDIX 6: CORRELATION ANALYSIS 102 APPENDIX 7: REGRESSION ANALYSIS .103 LIST OF TABLES Table 4.1 Cronbach’s Alpha Reliability Analysis 57 Table 4.2 Cronbach’s Alpha Reliability Analysis Result Summary .59 Table 4.3 Rotated Components Matrix 60 Table 4.4 EFA results for Independent Variables 61 Table 4.5 EFA results for Dependent Variables “Quality of Service” 62 Table 4.6 Correlation Analysis for factors influencing customer service quality of individual customers at VNDIRECT 63 Table 4.7 Model Summary .64 Table 4.8 ANOVA analysis result 65 Table 4.9 Coefficient of Regression Model 66 Table 4.10 Hypothesis Test Results .67 Table 4.11 Customer assessment of VNDIRECT services .68 LIST OF CHARTS Chart 4.1 Age group of Respondents 50 Chart 4.2 Gender groups of Respondents .51 Chart 4.3 Education Level of Respondents 52 Chart 4.4 Investing experience of Respondents 52 Chart 4.5 Information Approaches of Respondents 53 Chart 4.6 Types of services used by Respondents 54 Chart 4.7 Making transactions method of Respondents 55 Chart 4.8 Frequency of using VNDIRECT services of respondents .56 Chart 4.9 Customers’ Assessment of VNDIRECT Services 74 LIST OF FIGURES Figure 2.1 The Nordic model (Gronroos,1984) .19 Figure 2.2 Customer Service Model of Parasuraman (1985) 22 Figure 2.3 Measuring Service Quality using SERVQUAL model 23 Figure 2.4 Measuring Service Quality using SERVPERF model 26 Figure 2.5 Conceptual Framework for measuring customer service quality at VNDIRECT Securities Joint Stock Company 31 Figure 3.1 Research process 34 Figure 4.1 Organization Structure of VNDIRECT 44 EXECUTIVE SUMMARY In the year 2000, Vietnam Stock Market was established and created a method to strengthen the not only the development of capitalization but also the economy of the country The appearance of such many securities company create a competitive environment in the stock market and requires them to continuously develop and improve its competence In this situation, VNDIRECT Securities Joint Stock Company was founded in 2007 with specialization of securities services The company has been expanding its position in stock market and become one of top ten Securities Company in Vietnam Stock Market Contribution to the success of the company is the important role of customer service for individual customers In this thesis, I aim to identify the factors influence to customer service and the current situation of customer service quality for individual customers of VNDIRECT Securities Joint Stock Company –, in order to find some practical solutions to improve the quality of customer service for individual customers and competitive advantages of the company This research used secondary data collected from articles, reports, official website of VNDIRECT and primary data collected from interviews with 04 manager of VNDIRECT and survey of 123 customers having trading account at VNDIRECT Based on the data collected and a number of analyses, a research model of 05 factors having impacting on the quality of services as well as the strengths and weakness of the customer service system at VNDIRECT were defined After using SPSS and Microsoft Excel for analyzing, the result shows that the 05 factors - – which are “Transactions”, “Infrastructure and Facilities”, “Competence of Staff”, “Customer Care” and “Image of Company”- all have positive impact on quality of service at VNDIRECT It is also revealed that currently at VNDIRECT, the transactions process and the technology system of VNDIRECT are highly praised by the customers Fortunately, along with competence of staff, they are the main causes which influences the most to the quality of services for individuals experiencing securities services at VNDIRECT However, there are still some problems with customer care and the telephone hotline which trouble customers with some inconveniences, which requires VNDIRECT to have immediately solutions Being aware of these issues, a set of recommendations are suggested for improving the situation at VNDIRECT, including human resource policies, utilizing cutting edge technology, improving staff competence (especially hotline staff) and focusing on building brand image In these solutions, technology is significantly emphasized because its number of applications is enormous and it is also the main competitive advantage compared to other companies By utilizing technology, not only the management process will become much easier but also the investment experiences of the customers as well Hopefully, these recommendations will be not only useful for the situation of VNDIRECT Securities Joint Stock Company but also other securities companies in the industry to help the quality of customer service become more professional and brings the best benefits for the customers and the economy ... individual customers at VNDIRECT Securities Joint Stock Company? How they affect the service quality for individual customers? - What is the current situation of customer services for individual customers. .. Joint Stock Company - Assess the factors of service quality for individual customers at VNDIRECT Securities Joint Stock Company - Analyze the current situation of customer service quality for individual. .. individual customers at VNDIRECT Securities Joint Stock Company - Suggest several solutions and recommendations to improve the quality of customer services for individual customers at VNDIRECT Securities