THE STUDY OF PERSONEL SERVICE QUALITY WITH BANK CUSTOMER SATISFACTION IN ASIA COMMERCIAL BANK, DANANG BRANCH, VIET NAM

THE STUDY OF PERSONEL SERVICE QUALITY WITH BANK CUSTOMER SATISFACTION IN ASIA COMMERCIAL BANK, DANANG BRANCH, VIET NAM

The University of Danang- Shu-Te University

THESIS PROPOSAL

Student: Nguyen Hai Phu Advisor: Dr Yi-Feng Yang Co-advisor : Dr Duong Lien Ha

22th July, 2012

THE STUDY OF PERSONEL SERVICE QUALITY WITH BANK

CUSTOMER SATISFACTION IN ASIA COMMERCIAL BANK, DANANG

BRANCH, VIET NAM

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Introduction about State Bank of Vietnam

• The development process of the Vietnam banking system could be divided into 4 periods as follows:

Period 1 From 1951 to 1954: The Vietnam National Bank was founded and had

relatively independent operations in the financial system, implementing the first important duties assigned by the Communist Party of Vietnam and the Government.

Period 2 From 1955 to 1975: Reinforce the money market, stabilize prices,

contain inflation and create favourable conditions for the economic recovery.

Period 3 From 1975 to 1985: This is the ten-year postwar economic recovery after

the liberation and reunification of the country.

Period 4 From 1986 up to now: the state management function was gradually

separated from the commercial credit and monetary functions The new mechanism

of banking operations was built up and gradually improved.

Commercial banking system and financial cooperation include:

- 02 banks for social policies;

- 01 people’s credit fund;

- 05 state commercial banks (including banks which are equitized, but the state holds more than 51% stakes);

- 37 joint-stock commercial banks;

- 06 joint venture banks;

- 05 banks with 100% foreign capital;

- 13 financial leasing companies;

- 17 financial companies and 48 branches of foreign banks

Introduction about Asia Commercial Bank

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- Asia Commercial Joint-Stock Bank (ACB) was established under the

Business License No 0032/NH-GP dated 24 April 1993 issued by the State Bank of Vietnam

- Year 1996: ACB was the first Vietnamese commercial joint-stock bank to issue ACB-MasterCard – an international credit card

- Year 2005: Standard Chartered Bank (SCB) signed an agreement with ACB

on a comprehensive technical assistance, and became ACB’s strategic

shareholder

- Year 2011: ACB chartered capital was increased to VND 9,000,000 billion Moreover, the total nationwide branches and sub-branches have reached a number of 328

Introduction about Asia Commercial Bank

Study gaps

• This study is conducted in ACB, Danang, Vietnam This branch is located

at the middle of Vietnam, but besides that, Vietnam comprises 3 areas, including North, Middle and South So, if the study can be conducted in all of the areas of Vietnam, the result can be better and representative for the population

• Furthermore, the period time for the collecting data and analyzing is not long, so the sample size is not big enough to make sure that the result is reliability If I have more time, I will expand the sample size and make the results getting more reliable

Research questions

Q1: Do customers who using the service of ACB (Asia Commercial Bank), Danang Branch feel satisfied?

Q2: How can service quality be measured?

Q3: How do service quality’s attributes affect to customer satisfaction?

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LITERATURE REVIEW

Literature Review

Service Quality

According to a research of O.M Karatepe et al (2005), service quality of a bank can be measure

by 4 factors, including Service Environment, Interaction Quality, Empathy and Reliability

And this factors can affect to customer satisfaction.

Figure 1: Model of Service Quality 11

SERENV INTQUAL

EMP

REL

Customer Satisfaction

Banking Service Quality

The bulk of the research on service quality in banks has been in the context of

US and European banking institutions At this juncture, it is important to also study banking institutions based in developing economies like India, which has recently liberalized its banking sector As banks in such countries as India mature, lessons may be learned from their experiences by banks in developed economies as well as in other developing countries, as banking becomes more and more globally integrated In fact, there exists a significant gap in the service marketing literature on how consumers evaluate service quality in contexts and cultures very different from the developed countries, even though research has begun to explore this area (Bolton and Myers, 2003)

Literature Review

Anders Gustafsson, Michael D Johnson, & Inger Roos (2005) indicated that customer satisfaction could be defined as customer's overall evaluation of the products or services In service sector; service quality has directly effect on customer satisfaction Ingrid FecÏikovaÂ, (2004) explained satisfaction as a feeling which results from a process of evaluating what customer receive in comparison with what they expected, the purchase decision itself and/or the fulfillment of needs/want.

Literature Review

Customer Satisfaction

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RESEARCH METHODOLOGY

• (H1) Service Quality has a positive effect to customer satisfaction

• (H2) Interaction Quality of the Bank has a positive effect to customer satisfaction

• (H3) Factor Empathy has a positive effect to customer satisfaction

• (H4) Reliability has a positive effect to customer satisfaction

Items for measuring Service Quality

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1 The exterior of the bank

2 The interior of the bank

3 Employees of the bank have neat appearances

4 The interior of the bank is spacious

5 Employees of the bank have the knowledge to respond to problems

6 Employees of the bank are polite to customers

7 Employees of the bank are experienced

Items for measuring Service Quality

8 Employees of the bank instill confidence in customers

9 Employees of the bank are understanding of customers

10 Employees of the bank serve customers in good manner

11 A warm relationship between employees of the bank and customers

12 This bank does not make its customers stand in a queue for a long time

13 Employees of the bank enact transactions on a timely manner

14 Employees of the bank always help customers

No Items

15 Employees of the bank provide individualized attention to customers

16 Employees of the bank are willing to solve customer problems

17 Employees of the bank provide error-free service

18 Employees of the bank carry out customer transactions confidentially

19 Employees of the bank provide customers with precise information

20 This bank informs customers about its financial operation accurately

Items for measuring Service Quality

Items for measuring Customer Satisfaction

• For the overall Customer Satisfaction, I use 2 items to ask respondents about it, including:

Data Collection

• 250 customers who use the service of the bank will be asked for answering the questionnaire

• When customers come to the bank for their business, they can be chose

to answer the questionnaire, but it is not required If they are willing to fill the questionnaire, it is better, because the validity and reliability of the answers are getting better, and the result of the study can be improved a lot

• Questionnaire is written by using Vietnamese and English

• Using paper questionnaire and e-questionnaire

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Table 1 – Five Point Scale Ranking

Research Expectation

• Nowadays, the Economy of Vietnam is deeply integration into the world’s economy, where financial market seems to be the fiercest competitive market Especially, when Vietnam has accepted for Foreign Banks to enter to this market for doing business, it has becomes more fierce for local commercial banks, because foreign banks are professionals

in the retail banking sector So, this study can contribute to improve the service quality of local commercial banks for the overall and to help Asia Commercial Bank in improving the service quality in particular.

• When the competition becomes more and more fierce, managers always try to find the best ways to improve the service quality With the aim of finding out the attributes of the service quality to measure it, the result of this research aims to help managers of the bank

to get the attributes of service quality, the correlations between service quality’s attributes and the overall customer satisfaction And after that, the solutions can be given out to solve the problems and also to improve the customer loyalty and the profit of banks.

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Reference list

• Parasuraman, A.V.A Zeithaml, & Berry, L.L (1998), “SERVQUAL: A item scale for measuring consumer perception of service quality ”, Journal of Retailing,Vol.64 No.1, pp.12-37.

multiple-• Newman, K (2001), “ Interrogating SERVQUAL: a critical assessment of service quality measurement in a high street retail bank”, International Journal of Bank Marketing, Vol.19 No.3, pp 126-139.

• Shil Nikhil and Das Bhagaban, (2008), “ A Study of Customer Satisfaction with Regard to banking: An application of QFD”, the Icfain Journal of Management Research, Vol.VII, No.8, pp.7-26.

• Terrence Levesque, Gordon H.G McDougall, (1996), “Determinants of customer satisfactionin retail banking” , International Journal of Bank Marketing ,Vol.14 No.

Time to

2012

Complete chapter 3

Revise questionnaire survey if necessary

Collecting questionnaire survey

Complet chapter 4

Complet chapter 5 Full thesis completed and submitted thesis

Timetable

Thank you!