(Luận văn) the effect of relational benefits on customer loyalty, an empirical study of vietnamese banking industry , luận văn thạc sĩ

UNIVERSITY OF ECONOMICS HO CHI MINH CITY t to ng International School of Business hi ep w n lo ad y th ju NGUYEN THI AI TRAN yi pl n ua al va n THE EFFECT OF RELATIONAL BENEFITS ON CUSTOMER SATISFACTION AND CUSTOMER LOYALTY: AN EMPIRICAL STUDY OF VIETNAMESE BANKING INDUSTRY ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va MASTER OF BUSINESS (Honours) y te re th Ho Chi Minh City – Year 2014 UNIVERSITY OF ECONOMICS HO CHI MINH CITY t to ng International School of Business hi ep w n lo ad y th ju NGUYEN THI AI TRAN yi pl n ua al va n THE EFFECT OF RELATIONAL BENEFITS ON CUSTOMER SATISFACTION AND CUSTOMER LOYALTY: AN EMPIRICAL STUDY OF VIETNAMESE BANKING INDUSTRY ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va ID: 22110067 y te re MASTER OF BUSINESS (Honours) th SUPERVISOR: DR NGUYEN THI MAI TRANG Ho Chi Minh City – Year 2014 t to ng TABLE OF CONTENTS hi ep ACKNOWLEDGEMENT w n ABSTRACT lo TABLE OF CONTENTS ad LIST OF FIGURES y th ju LIST OF TABLES yi pl CHAPTER 1: INTRODUCTION .1 al n ua 1.1 Research Background n va 1.2 Research Objectives ll fu 1.3 Research Scope and Research Methodology oi m 1.4 Structure of The Research at nh CHAPTER 2: LITERATURE REVIEW z 2.1 Customer Loyalty z ht vb 2.2 Customer Satisfaction jm 2.3 Relational Benefits 10 k 2.4 The Conceptual Model and Hypotheses of The Research 14 gm CHAPTER 3: RESEARCH METHODOLOGY 17 l.c om 3.1 Research Design 17 a Lu 3.1.1 The Unit of Observation 17 n 3.1.2 Measures of The Constructs 17 y te re 3.3 Data Procedure 22 n va 3.2 Questionnaire Design 19 3.3.2 Quantitative Research 22 3.4 Data Analysis Method 26 CHAPTER 4: DATA ANALYSIS AND DISCUSSIONS 28 th 3.3.1 Qualitative Research 22 4.1 Descriptive Statistics of Samples 28 t to 4.2 The Reliability Test: The Cronbach’s Alpha Test 29 ng hi 4.3 Exploratory Factor Analysis (EFA) 33 ep 4.4 Regression Analyses 36 w n 4.4.1 Simple Regression Analysis 36 lo ad 4.4.2 Multiple Regression Analysis 38 ju y th CHAPTER 5: CONCLUSIONS, IMPLICATIONS, AND LIMITATIONS 45 yi 5.1 Conclusions 45 pl 5.2 Managerial implications 46 ua al 5.3 Limitations 49 n va REFERENCES 50 n fu APPENDICES 54 ll m oi Appendix A: Guidelines for in-depth interviews 54 nh Appendix B: Questionnaire In English 56 at z Appendix C: Questionnaire In Vietnamese 59 z vb Appendix D: Total variance explained in Exploratory Factor Analysis 62 jm ht k Appendix E: Histogram, Normal Regression & Scatter Plot of Dependent Variable: Customer Satisfaction 64 om l.c gm n a Lu n va y te re th ACKNOWLEDGEMENT t to ng I would like to give my gratefulness to my research instructor, Dr Nguyen Thi Mai hi ep Trang for her intensive support, valuable suggestions, instructions, and encouragement during w the time of doing my research n lo ad I would like to express my deepest gratitude to Professor Nguyen Dong Phong, Professor ju y th Nguyen Dinh Tho, Dr Tran Ha Minh Quan for their valuable time as the members of the yi proposal examination committee Their comments and meaningful suggestions were contributed pl ua al great help for my completion of this research n My sincere thanks are given to all of my teachers at International Business School – va n University of Economics Ho Chi Minh City for their teaching and guidance during my MBA fu ll course oi m In addition, I would like to special express my thanks to all of my classmates, my nh at colleagues at Samsung Vina Insurance Company Limited and my friends who are working in z z some banks in Ho Chi Minh City for their support and encouragement during the time I was k jm ht vb doing my research om l.c gm n a Lu n va y te re th ABSTRACT t to ng This study will examine the effect of relational benefits on customer satisfaction and hi ep consequently, the influence of customer satisfaction on customer loyalty in Vietnamese banking w industry Based on the theories and measurements of those factors existed in the current n lo ad liturature, and a qualitative research conducted in Vietnam, a model has been released following ju y th measurement scale of those concepts A quantitative research of 186 banking customers has been yi done to evaluate the measurement scale and test the model pl al n ua The results of Cronbach’s alpha test show that the scale is satisfactory with the allowed n va reliability and validity It also can indicate that the theoretical model is suitable in Vietnam ll fu banking industry and all hypotheses are accepted For specific, the study shows that customer oi m satisfaction highly impacts on customer loyalty in Vietnamese banking industry Moreover, at nh among relational benefits, special treatment benefits and confidence have positive impacts on z customer satisfaction, however, social benefits not show the influence on customer z vb satisfaction Besides, special treatment benefits also have been proved to have a strongest impact k jm ht on customer satisfaction gm In general, researching of the effects of these variables will support the banks’ managers l.c om get thorough understanding of the effect of each relational benefits factors on customer n a Lu satisfaction, then, help them to identify which variables are the best predictors to customer th competitive marketplace in Vietnam y managers to release effective decisions to gain long-term loyal customers in such highly te re satisfied will remarkably affect to the loyalty of customers to the banks, which will help banks’ n va satisfaction to place emphasis on Furthermore, the study also indicates that making customers LIST OF FIGURES t to ng Figure 2.1 Conceptual Model hi ep Figure 3.1 Research Process w n lo Figure E1 Histogram of Customer Satisfaction ad ju y th Figure E2 Normal Plot of Customer Satisfaction yi Figure E3 Scatter Plot of Customer Satisfaction pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th LIST OF TABLES t to ng Table 3.1 The Result of Questionnaires Delivery hi ep Table 4.1 w Table 4.2 Sample Characteristics Reliability Test Results n lo Table 4.3 KMO and Bartlett's Test of Independent Variables ad Rotated Component Matrix of Independent Variables Table 4.5 KMO and Bartlett's Test of Dependent Variables Table 4.6 Rotated Component Matrix of Dependent Variables Table 4.7 Model Summary of Simple Regression Analysis Table 4.8 ANOVA of simple regression analysis Table 4.9 Coefficients of simple regression analysis ju y th Table 4.4 yi pl n ua al n va ll fu oi m Table 4.10 Correlations matrix nh at Table 4.11 Model Summary of multiple regression analysis z Model Summary b of multiple regression analysis n a Lu Table D3 om Total Variance Explained of Dependent Variables l.c Table D2 gm Total Variance Explained of Independent Variables k Table D1 jm Table 4.14 Summary of hypotheses testing result ht vb Table 4.13 Coefficients of multiple regression analysis z Table 4.12 ANOVA of multiple regression analysis n va y te re th t to ng hi CHAPTER 1: INTRODUCTION ep 1.1 Research Background w n lo ad The globalization of economy has created an environment more competitive than ever in ju y th Vietnam All companies, with no exception in any industries, strive to differentiate themselves yi from other rivals to get successful survival In this perspective, customer loyalty has emerged as pl ua al an important aspect that most companies want to be strong at since it is considered as a n competitive advantage for all companies to achieve stable development n va ll fu Regarding services industry’s aspect, achieving loyalty of customers has become much oi m more important since the operation of service involves much on the interactions between service at nh providers and customers In banking industry, for specific, achieving customer loyalty is a key to z help banks gain sustainable competitive advantage, retain customer, grow in sales, and gain long- z vb term customers Obviously, there are many factors affecting customer loyalty Achieving jm ht customer satisfaction is known as one of them, showing a positive impact on loyalty of customer k gm (Zeithaml, Berry, & Parasuraman, 1996; Fornel, Johnson, Anderson, Cha, & Bryan, 1996; om l.c Selness, 1993) When customers are satisfied, they are more likely to return to those service providers and when there is an increase in satisfaction level, they will stay loyal to those a Lu n companies (Anderson & Sullivan, 1993) Therefore, numerous studies have been conducted to y te re affecting customer satisfaction have already been investigated such as service quality (Vu & n va identify and measure the components of satisfaction In Vietnam, some important factors (Nguyen, 2013; Ngo, 2012) However, little research in Vietnam has been devoted to investigate the impact of relational benefits on customer satisfaction Besides, in the world, th Nguyen, 2008; Lam, 2012; Nguyen, 2013), service personal value (Pham & Le, 2010), brand - 2- t to ng hi relational benefits have been widely studied, also in banking industry (Arturo, David, & Agueda, ep 2007; Sergios, 2010; Maria-Eugenia, 2008), however, these studies have showed the impact of w relational benefits on customer satisfaction or directly on customer loyalty only, not indicated the n lo ad impact of relational benefits on customer satisfaction, and consequently the influence of y th customer satisfaction on customer loyalty Hence, to address the gaps as mentioned above, this ju yi study aims to investigate the effect of relational benefits on customer satisfaction, and pl n industry ua al consequently the influence of customer satisfaction on customer loyalty in Vietnamese banking n va ll fu As opposed to the marketing management, relationship marketing tends to become a oi m flourishing field as well as a generalized alternative conception in marketing theory and practice nh perspective (Berry, 1983) According to Kinard and Capella (2006), a fundamental condition at z for a relationship to develop over time is that both the firm and the customer perceive z vb positive outcomes, or benefits The benefits the banks receive include loyalty of customers, long- jm ht term profitability, and sales growth What the customer gets is associated with the service itself k gm and/or with benefits that can develop from being a regular customer of the company – called om l.c relational benefits (Gwinner, Gremler & Bitner, 1998; Reynolds & Beatty, 1999) Gwinner et al (1998) and Hennig-Thurau et al (2002) reveal that service comprises of the two components: a Lu n core service and relationship, however, the relationship benefits framework focuses on the y te re above the core service n va relationship component and defines relational benefits as the value a customer receives over and th - 51- t to ng hi ep Fornell, C., Johnson, M.D., Anderson, E.W., Cha, J., & Bryant, B.E (1996) The American Customer Satisfaction Index: Nature, Purpose, and Findings Journal of Marketing, 60, 718 w n Greenland, K., & Looney, W (2007) Secondary market offers another option to manage loan portfolios Commercial Lending Review, 35(37), 44 lo ad ju y th Gremler, D D., & Brown, S W (1996) Service loyalty; its nature, importance and implications, Advancing Service Quality: a Global Perspective New York: ISQA yi Groănroos, C (1990) Relationship approach to marketing in service contexts: the marketing and organizational behavior interface Journal of Business Research, 20, 3-11 pl ua al n Gwinner, K.P., Gremler, D.D., & Bitner, M.J (1998) Relational benefits in services industries: the customer’s perspective Journal of the Academy of Marketing Science, 26(2), 101141 n va fu ll Hair, J F., Black , W C., Babin, B J., & Anderson, R E (2009) Multivariate data analysis (7th ed.) Prentice Hall oi m at nh Hennig-Thurau, T., Gwinner, K.P., & Gremler, D.D (2002) Understanding relationship marketing outcomes: an integration of relational benefits and relationship quality Journal of Service Research, 4(3), 230-247 z z k jm ht vb Homburg, C., Koschate, N., Hoyer, W.D (2006).The role of cognition and affect in the formation of customer satisfaction: a dynamic perspective Journal of Marketing, 70, 2131 om l.c gm Kinard, B.R., & Capella, M.L (2006) Relationship marketing: the influence of consumer involvement on perceived service benefits Journal of Services Marketing, 20(6), 359368 n a Lu Lam, V.H (2012) Antecedents of shopper loyalty in the Vietnamese supermarkets Master thesis, University of Economics Hochiminh City, Vietnam Retrieved from http://www.isb.edu.vn/ISBResearch.aspx?page=1¶m=21 y te re th Lewis, B.R., & Soureli, M (2006) The antecedents of consumer loyalty in retail banking Journal of Consumer Behaviour, 5, 15-31 n va Leech, N C., Barrett, K C., & Morgan, G A (2005) Spss for intermediate statistics: Use and interpretation (2nd ed.) Mahwah, NJ: Lawrence Erlbaum Associates - 52- t to ng hi ep Li-Wei, W (2009) Satisfaction, inertia, and customer loyalty in the varying levels of the zone of tolerance and alternative attractiveness Published Master Thesis, Tunghai University Retrieved from http://www.emeraldinsight.com/journals.htm?issn=08876045&volume=25&issue=5&articleid=1941501&show=html w n lo Maria–Eugenia, R.M., Irene G.S., & Gloria B.C (2008) Relational benefits and loyalty in retailing: an inter-sector comparison Published Master Thesis, Faculty of Economics, University of Valencia, Valencia Retrieved from http://www.emeraldinsight.com/journals.htm?issn=09590552&volume=37&issue=6&articleid=1789311&show=html ad ju y th yi pl n ua al Marzo, M., Pedraja, M., & Rivera, M.P (2004) The benefits of relationship marketing for the consumer and for the fashion retailers Journal of Fashion Marketing and Management, 8(4), 425-436 va n Ngo, O.H.T.Q (2012) Determinants of Brand Loyalty in the Vietnamese beer industry Master thesis, University of Economics Hochiminh City, Vietnam Retrieved from http://www.isb.edu.vn/ISBResearch.aspx?page=1¶m=11 ll fu oi m at nh Nguyen, C.T.M (2013) Factors affecting customer satisfaction in group buying in Vietnam Master thesis, University of Economics Hochiminh City, Vietnam Retrieved from http://www.isb.edu.vn/ISBResearch.aspx?page=1¶m=30 z z jm ht vb Oliver, R.L (1980) A cognitive model of the antecedents and consequences of satisfaction decisions Journal of Marketing Research, 17(4), 460-469 k Oliver, R.L., Rust, R.T., & Varki, S (1997) Customer delight: foundations, findings, and managerial insight Journal of Retailing, 73(3), 311-336 gm om l.c Patterson, G., & Smith, T (2001) Relationship benefits in service industries: a replication in a Southeast Asian context Journal of Services Marketing, 15(6), 425-443 n a Lu Pham, N., & Le, H.N (2010) Service personal values and customer loyalty: A study of banking services in a transitional economy International Journal of Bank Marketing, 28(6), 466470 n y te re th Reynolds, K.E., & Beatty, S (1999) Customer benefits and company consequences of customer-salesperson relationships in retailing Journal of Retailing, 75(1), 11-32 va Peterson, R.A (1995) Relationship marketing and the consumer Journal of the Academy of Marketing Science, 23(4), 278-281 - 53- t to ng hi ep Selness, F (1993) An Examination of the Effect of Product Performance on Brand Reputation, Satisfaction, and Loyalty International Journal of Social Economics, 29(2), 97-118 w Sergios, D (2010) Testing perceived relational benefits as satisfaction and behavioral outcomes drivers Published Master Thesis, University of Economics and Business, Athens, Greece http://www.emeraldinsight.com/journals.htm?issn=02652323&volume=28&issue=4&articleid=1864314&show=html n lo ad y th ju Vu, C.T.M, & Nguyen, A.V (2008) Measuring customer satisfaction based on service quality gap at a local bank in Vietnam Journal of International Business Research, 7(30), 29-31 yi pl n ua al Westbrook, R.A (1987) Product/consumption-based affective responses and post-purchase processes Journal of Marketing Research, 24( 3), 258-270 n va Zeithaml, V.A., Berry, L.L., & Parasuraman, A (1996) The Behavioural Consequences of Service Quality Journal of Marketing, 60(2), 31-46 ll fu oi m at nh z z k jm ht vb om l.c gm n a Lu n va y te re th - 54- t to ng hi APPENDICES ep Appendix A: Guidelines for in-depth interviews w n Original measurement scales lo Comments ad yi I feel I can trust this bank I am confident the service will be performed correctly by this bank I have less anxiety when I use services in this bank pl n ua al I believe there is less risk that something will go wrong ju Confidence Benefits y th I believe there is less risk that something will go wrong All interviewees stated that they understood the meaning of all items However, one of interviewees states that the meaning of question number and is nearly the same Besides, it is suggested that “the bank” should replace by “bank X” for clear meaning of the bank mentioned above I feel I can trust bank X I am confident the service will be performed correctly by bank X I have less anxiety when I use services in bank X oi I get the bank X’s highest level of service at nh I get the bank’s highest level of service I know what to expect from bank X m ll I know what to expect from this bank fu n va Final measurement scales z z Social Benefits n I get discount or deals from bank X that most consumers not The prices I get from bank X are better than those other customers get They services for me that they not for most n y te re th All interviewees stated that they understood the meaning of all items However, it is suggested that “the bank” should replace by “bank X” for clear meaning of the bank mentioned above va 13 a Lu 12 om 11 l.c They know my name Special Treatment Benefits I get discount or deals from this bank that most consumers not The prices I get from this bank are better than those other customers get They services for me that they not for most gm They know my name I am familiar with the employee(s) that perform the service I have developed a friendship with bank X’s employees k 10 jm I am familiar with the employee(s) that perform the service I have developed a friendship with this bank’s employees All interviewees stated that they understood the meaning of all items However, it is suggested that “the bank” should replace by “bank X” for clear meaning of the bank mentioned above I am recognized by bank X’s employees ht I am recognized by this bank’s employees vb - 55- t to ng hi customers I am placed higher on the priority list when there is a line I am placed higher on the priority list when there is a line ep customers w 14 n lo I get master service than most customers I get master service than most customers ad 15 y th ju Customer Satisfaction This bank is a good firm to business with I am satisfied with the competence of salesperson of this bank yi pl 16 n ua al 17 oi nh I am satisfied with the service quality of bank X I am satisfied with the relationship with bank X In general, I am satisfied with the services offered by bank X at z In general, I am satisfied with the services offered by this bank m 20 ll I am satisfied with the relationship with this bank fu 19 n I am satisfied with the service quality of this bank va 18 All interviewees stated that they understood the meaning of all items However, it is suggested that “the bank” should replace by “bank X” for clear meaning of the bank mentioned above Bank X is a good firm to business with I am satisfied with the competence of salesperson of bank X z I seldom consider switching to another bank n n va y I will more business with bank X in the future years te re I will more business with this bank in the future years a Lu 25 I believe that this is my favorite bank om I seldom consider switching to another bank l.c 24 gm I believe that this is my favorite bank k 23 When I need to make a purchase, bank X is my first choice To me, bank X is the best one to business with jm 22 All interviewees stated that they understood the meaning of all items However, it is suggested that “the bank” should replace by “bank X” for clear meaning of the bank mentioned above Moreover, the interviewees suggested that the title of the research should be deleted to make the interviewees less confused because the term “relational benefits” in their first thought is having got relationship with banks’ employees before in order to have good quality service ht 21 When I need to make a purchase, this bank is my first choice To me, this bank is the best one to business with vb Customer Loyalty th - 56- t to ng hi Appendix B: Questionnaire In English ep Dear Sir/ Madam, w n I am a student of Master of Business program at ISB – University of Economics Ho Chi Minh City lo ad Now, I am studying the service quality of Vietnamese Banking industry On this purpose, I hope ju to finish y th you could spend time completing this short questionnaire, which takes you no longer than minutes yi pl Kindly be noted that there is no right or wrong answer, all of your responses are considered valuable al ua to me.Your personal information will be kept confidential and not be disclosed without your n permission If you have any concerns or questions relating this study, please not hesitate to va contact me via e­mail address: aitrannguyen88@yahoo.com n fu ll Thank you very much for your kind support oi m nh PART 1: SCREENING INFORMATION at Have you used the term deposit banking service in the last months? z z Yes vb If the answer is “Yes”, please keep moving on question k jm ht No th PART 2: MAIN CONTENT y Your above selected bank is considered as bank X in the following questionaire: te re f Other:……………………… n e Standard Chartered Vietnam Limited va d Shinhan Bank Vietnam Limited n c HSBC a Lu b Asia Commercial Bank (ACB) om a Vietcombank l.c Which bank are you using term deposit service most often? gm If the answer is “No”, please stop answering here, thank you so much for your time! - 57- t to ju 7 7 7 7 yi Strongly Agree y th Agree ad Fairly agree lo Neutral n = Fairly agree ht w = Neutral vb = Fairly disagree Fairly disagree ep = Disagree Disagree hi = Strongly disagree Strongly disagree ng To what extent you agree with each of the following statements, please indicate your answer using the following 7-point scale where: pl = Agree n ua al = Strongly agree I believe there is less risk that something will go wrong I feel I can trust bank X I am confident the service will be performed correctly by bank X I have less anxiety when I use services in bank X I know what to expect from bank X I get the bank X’s highest level of service I am recognized by bank X’s employees n va ll fu oi m at nh z z 7 n 7 2 y te re th I get master service than most customers va 15 n 14 a Lu 13 om 12 I get discount or deals from bank X that most consumers not The prices I get from bank X are better than those other customers get They services for me that they not for most customers I am placed higher on the priority list when there is a line l.c 11 They know my name gm 10 k I am familiar with the employee(s) that perform the service I have developed a friendship with bank X’s employees jm - 58- t to ng hi 16 ep 17 I am satisfied with the competence of salesperson of bank X I am satisfied with the service quality of bank X 7 7 Bank X is a good firm to business with w 18 n In general, I am satisfied with the services offered by bank X When I need to make a purchase, bank X is my first choice ju y th 21 ad 20 I am satisfied with the relationship with bank X lo 19 yi To me, bank X is the best one to business with 23 I believe that this is my favorite bank al 24 I seldom consider switching to another bank 25 I will more business with bank X in the future years pl 22 n ua n va ll fu oi m PART 3: PERSONAL INFORMATION nh at This section of the questionnaire refers to background or biographical information The information z z will allow me to classify and compare groups of respondents Female 22– 24 > 35 om l.c Employment status 25 – 35 gm 