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 THE STUDY OF PERSONEL SERVICE QUALITY WITH BANK CUSTOMER SATISFACTION IN ASIA COMMERCIAL BANK, DANANG BRANCH, VIET NAM Student: Nguyen Hai Phu Advisor: Dr Yi-Feng Yang Co-advisor : Dr Duong Lien Ha 22th July, 2012 OUTLINE • Introduction • Literature Review • Research Methodology • Research Expectation INTRODUCTION Introduction about State Bank of Vietnam • The development process of the Vietnam banking system could be divided into periods as follows: Period 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 From 1955 to 1975: Reinforce the money market, stabilize prices, contain inflation and create favourable conditions for the economic recovery Period From 1975 to 1985: This is the ten-year postwar economic recovery after the liberation and reunification of the country Period 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 Introduction about Asia Commercial Bank 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 - 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 Objectives • To measure the overall level of customer satisfaction about the service of Asia Commercial Bank, Danang Branch • To find out the factors of service quality affecting to customer satisfaction in banking service • To find out the Multiple Linear Regression Equation of the relationship between factors of service quality and customer satisfaction • From the findings of the survey, some implications can be given to improve the overall customer satisfaction Study gaps • This study is conducted in ACB, Danang, Vietnam This branch is located at the middle of Vietnam, but besides that, Vietnam comprises 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 service quality’s attributes affect to customer satisfaction? LITERATURE REVIEW 10 Literature Review 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) 12 Literature Review Customer Satisfaction 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 13 RESEARCH METHODOLOGY 14 Research Methodology Model of research Service Environment Interaction Quality Customer Satisfaction Empathy Reliability Independent Dependent Figure 2: Research Model 15 Hypotheses • (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 16 Items for measuring Service Quality No Items The exterior of the bank The interior of the bank Employees of the bank have neat appearances The interior of the bank is spacious Employees of the bank have the knowledge to respond to problems Employees of the bank are polite to customers Employees of the bank are experienced 17 Items for measuring Service Quality No Items Employees of the bank instill confidence in customers 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 18 Items for measuring Service Quality 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 Customer Satisfaction • For the overall Customer Satisfaction, I use items to ask respondents about it, including: • Overall Satisfaction: • You feel satisfied with the service which the bank provides you • Expectation: • The service the bank provides can meet your expectation 20 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 21 Measurement points Likert Scale is used in the questionnaire to collect the answer of respondents Each item is measured on a five-point scale ranging from ‘‘5 strongly agree’’ to ‘‘1 strongly disagree’’ The ranking is: Strongly Disagree Disagree No Comment Agree Strongly Agree Table – Five Point Scale Ranking 22 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 23 Reference list • Parasuraman, A.V.A Zeithaml, & Berry, L.L (1998), “SERVQUAL: A multipleitem scale for measuring consumer perception of service quality ”, Journal of Retailing,Vol.64 No.1, pp.12-37 • 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 7, pp.12-20 • MA Trinh Thanh Hai (2007), “Customer Satisfaction at Bank of Tokyo and Mitsubishi,UFJ” • CFVG programe • Kurt Matzler (2002), “The factor structure of Customer satisfaction” , InternationalJournal of Service Industry Management, Vol.13 No.4, pp.314-332 24 Timetable Time to complete Sep 1st- Sep 20th Activity Complete chapter & Oct – Oct 15th Oct 16th- Oct 31st 2012 Questionnaire design Pre testing questionnaire survey Nov Dec 2013 Jan Feb Complete chapter Revise questionnaire survey if necessary Sent out questionnaire survey Collecting questionnaire survey Data Analysis Complet chapter Complet chapter Full thesis completed and submitted thesis Ready for oral thesis defense Thank you! 26 ... to customer satisfaction 16 Items for measuring Service Quality No Items The exterior of the bank The interior of the bank Employees of the bank have neat appearances The interior of the bank. .. 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 find out the factors of service quality affecting to customer satisfaction in banking service • To find out the Multiple Linear Regression Equation of the relationship between factors of service