Assessment of service quality of e banking on customer satisfaction in vietinbank

- RESEARCH PROJECT (BMBR5103) ASSESSMENT OF SERVICE QUALITY OF EBANKING ON CUSTOMER SATISFACTION IN VIETINBANK STUDENT’S FULL NAME : NGUYEN DUC ANH STUDENT ID : CGS00019891 INTAKE : SEPTEMBER, 2015 ADVISOR’S NAME & TITLE : DR BUI PHI HUNG FEB, 2017 - RESEARCH PROJECT– BMBR5103 ADVISOR’S ASSESSMENT Advisor’s signature 1|Page - RESEARCH PROJECT– BMBR5103 ACKNOWLEDGEMENT First, we would like to express our sincere thanks to teachers in Master of Business Administration program in HUTECH Institute of International Education University of Technology has equipped me with the knowledge and skills throughout the course so that we can accomplish content of the school curriculum We sincerely thank Dr Bui Phi Hung, the scientific guidance of the study, has enabled us to reach practical, discovered topics and commitment to helping us complete this study I would also like to thank to customers and VietinBank's staffs, which spent their precious time to answer the questions in this study Finally, I would like to thank the friends, colleagues are always encouraged, enthusiastic comments, help me during the learning process, and complete this study Sincerely thanks 2|Page - RESEARCH PROJECT– BMBR5103 EXECUTIVE SUMMARY Customer satisfaction is vital and is targeted at businesses that are currently pursuing Along with the increasingly strong response in the business environment, understanding of customer needs, the factors affecting customer satisfaction becomes more necessary Satisfying customer needs of the service sector plays critical role in the interaction between customers and businesses, Specifically, if the business can bring customers high satisfaction, customers will continue to use the services, favor new services, and introduce businesses to other partners This will lead to sales increase, market profitability, and the enterprises position in the market That is what any business that wishes to achieve With the topic "Assessment of Service quality of E-Banking on Customer Satisfaction in VietinBank", the study researches on customer satisfaction with the E-Banking services provided by VietinBank The research targets are to (1) To identifying the major service quality dimensions that satisfy customers in EBanking ; (2) To identify the correlation between service quality of internet banking and customer satisfaction;(3) propose recommendation to improve the service quality to enhance customer satisfaction The research methodology was used is quantitative research in the investigation and data processing such as: questionnaire, testing the scales, factor analysis, and regression Support software is SPSS 20 The study results indicated that the level of customer satisfaction is influenced by five factors, which are (1) Tangible, (2) Reliability, (3) Responsiveness, (4) Assurance, and (5) Empathy All these factors have positive influences on customer satisfaction It will be the basic for E-Banking service to increase effectively the customer satisfaction 3|Page - RESEARCH PROJECT– BMBR5103 This study again shows the SERVQUAL model is a good model for measuring service quality and customer satisfaction In addition, research has opened up new suggestions for future research Finally, the study also points out the limitations and proposes research directions for future research 4|Page - RESEARCH PROJECT– BMBR5103 ABBREVEIATIONS AND ACRONYMS E-Banking : Internet Banking VietinBank : Vietnam Joint Stock Commerical Bank for Industry and Trade SERVQUAL : The service quality components scales RLI : Reliability RSP : Responsiveness ASR : Assurance EMP : Empathy TNG : Tangible CSI : Customer Satisfaction Index ACSI : American Satisfaction Index ECSI : European customer satisfaction index LIST OF FIGURE Figure : Characteristics of Services Figure : Five Gaps in the SERVQUAL model Figure : American Customer Satisfaction Index Figure : European Customer Satisfaction Index – ECSI Figure : Conceptual research model Figure : Research process Figure : Model relationship service quality and customer satisfaction of E-Banking after Exploratory factor analysis 5|Page - RESEARCH PROJECT– BMBR5103 LIST OF TABLE Table 3.1 : Encode the service quality scale Table 4.1 : Cronbach's alpha of the components in the model of SERVQUAL Table 4.2 : Cronbach's alpha of satisfaction customer nd Table 4.3 : EFA’s result of SERVQUAL model Table 4.4 : EFA’s result of Satisfaction scale Table 4.5 : Correlation matrix between variables Table 4.6 : Statistical analysis of the regression coefficients (SERVQUAL Model) Table 4.7 : Statistics for each variable in the equation (SERVQUAL Model) 6|Page - RESEARCH PROJECT– BMBR5103 Contents CHAPTER 1: INTRODUCTION 1.1 Background 1.2 Research problems 1.3 Research objectives 10 Research question 10 1.4 1.5 Research methodology 11 1.6 Limitations 11 1.7 Structure of paper 11 Conclusion 12 1.8 CHAPTER 2: LITERATURE REVIEW AND THEORETICAL MODES 13 2.1 Introduction 13 Internet Banking 13 2.2 Service 13 2.3 2.3.1 Definition of service 13 2.3.2 Characteristics of service 14 Service quality 16 2.4 2.4.1 Definition of service quality 16 2.4.2 Service quality measurement 16 Customer satisfaction 18 2.5 2.5.1 Definition of customer satisfaction 18 2.5.2 Customer satisfaction index 19 2.6 Relationship between customer satisfaction and service quality 21 2.7 Conceptual research model and proposed hypothesis 22 2.7.1 Conceptual research model 22 2.7.2 Proposed hypotheses 23 2.7.3 The scales service quality and customer satisfaction 23 2.8 The GAPs in literature review 25 Conclusion 25 2.9 CHAPTER 3: METHODOLOGY 26 3.1 Introduction 26 3.2 Research Method 26 3.2.1 Research process 26 3.2.2 Design survey 27 3.2.3 Quantitative Research 27 3.3 Data analysis plan 27 3.3.1 Cronbach’s Alpha 29 3.3.2 Exploratory factor analysis-EFA 29 3.3.3 Linear regression 30 Conclusion 30 3.4 CHAPTER 4: ANALYSIS AND FINDING 31 7|Page - RESEARCH PROJECT– BMBR5103 Sample Description 31 Cronbach’s Alpha Analysis 31 4.2.1 Analysis service quality scale SERVQUAL model 31 4.2.2 Analysis satisfaction scale 33 4.3 The evaluating scale using Exploratory factor analysis (EFA) 33 4.3.1 The service quality scale :SERVQUAL model 33 4.3.2 Satisfaction scale 36 4.3.3 Adjusted Model 36 4.4 Linear regression analysis 37 4.4.1 SERVQUAL Model 37 4.4.2 To comment to the results of this study with the results of other studies 41 Conclusion 42 4.5 CHAPTER 5: CONCLUSION AND RECOMMENDATION 43 Conclusion 43 5.1 Recommendation 43 5.2 Limitation 44 5.3 REFERENCES 45 47 APPENDIX - SURVEY 47 Appendix 1.1: SURVEY (English version) 47 Appendix 1.2: SURVEY (Vietnamese version) 49 APPENDIX - CRONBACH’S ALPHA ANALYSIS - After exclude fake 52 Appendix 2.1 : Reliability and Tangible 52 Appendix 2.2 : Responsiveness and Assurance 54 Appendix 2.3 : Empathy 55 APPENDIX - EXPLORATORY FACTOR ANALYSIS 57 st Appendix 3.1 : Exploratory factor analysis for Server quality – SERVQUAL model 57 nd Appendix 3.2 : Exploratory factor analysis for Service quality – SERVQUAL model 61 Appendix 3.3 : Exploratory factor analysis for Satisfaction scale 66 APPENDIX - MULTILE REGRESSION ANALYSIS 68 APPENDIX - SURVEY RESULT (Vietnamese version) 71 4.1 4.2 APPENDIX factor 8|Page - RESEARCH PROJECT– BMBR5103 CHAPTER 1: INTRODUCTION 1.1 Background Internet Banking refers to banking services are provided through a secure website of the bank whereby it involves the use of the Internet as a transaction channel Banks offer Internet banking in two main ways Internet Banking bring to its customers as an addition to its traditional transaction channels in the bank For Daniel (1999), Internet banking can be defined as the provision of information or services of a bank to the customer via the internet Thus, the definition of internet banking is equivalent to online banking Internet Banking allows everyone to manage their finances quickly and conveniently to perform various banking transactions via internet banking website from home, office or anywhere on 24 hours a day, days a week In Vietnam, internet banking services have been operational since 2004 Vietinbank, in VietNam has internet banking in 2008, which was known as www.ebanking.vietinbank.vn Besides that, Vietibank has also launched the new “look and feel” of www.ebanking.vietinbank.vn, website that combines a simple experience in layout, design and its navigation Therefore, it has been seen that internet banking has become one of the most popular services utilized by the VietNam retail banking customers in recent years and Vietinbank working continuously to add or improve it internet banking services in order to make their bank a better choice among their customers as well as to retain it 1.2 Research problems The challenging business environment in the financial services market resulted in more pressure on the banks to develop and alternative delivery channels useful, with a view to attracting more customers and improving customer perceptions and encouraging loyalty Internet Banking is among the channels that were developed and implemented Banks have invested heavily in introducing and making Internet 9|Page - RESEARCH PROJECT– BMBR5103 Component Matrix Component RLI04 RLI02 RLI01 RLI03 TNG20 RLI05 TNG18 TNG21 ASR11 RSP07 EMP13 ASR12 ASR09 RSP06 ASR10 EMP15 EMP14 EMP16 a 890 881 867 864 859 851 847 831 818 815 790 775 766 730 713 696 695 649 087 041 -.072 145 072 -.158 143 -.044 -.335 -.376 447 -.341 -.235 -.507 -.516 570 594 635 -.210 -.258 -.262 -.198 -.275 -.296 -.293 -.198 229 210 167 209 381 168 174 221 291 256 Extraction Method: Principal Component Analysis a components extracted 63 | P a g e - RESEARCH PROJECT– BMBR5103 Rotated Component Matrix Component TNG18 RLI05 RLI02 TNG20 RLI01 RLI04 RLI03 TNG21 RSP06 ASR10 RSP07 ASR11 ASR09 ASR12 EMP14 EMP16 EMP15 EMP13 a 781 777 774 773 764 745 721 693 336 321 365 353 208 340 255 252 308 406 263 459 367 325 429 364 318 421 839 838 825 809 787 778 164 094 147 256 380 151 334 340 239 394 431 272 034 022 193 234 353 200 911 904 861 788 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations 64 | P a g e - RESEARCH PROJECT– BMBR5103 65 | P a g e - RESEARCH PROJECT– BMBR5103 Appendix 3.3 : Exploratory factor analysis for Satisfaction scale KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0.728 Approx Chi-Square df Sig 515.067 0.000 Bartlett's Test of Sphericity Communalities Initial SAS22 SAS23 SAS24 Extraction 1 0.91 0.801 0.887 Extraction Method: Principal Component Analysis Component Total Variance Explained Extraction Sums of Squared Initial Eigenvalues Loading s % of Cumulative % of Cumulative Total Total Variance % Variance % 2.598 86.614 86.614 2.598 86.614 86.614 290 9.657 96.271 112 3.729 100.000 66 | P a g e - RESEARCH PROJECT– BMBR5103 a Component Matrix SAS22 SAS24 SAS23 Component 954 942 895 Extraction Method: Principal Component Analysis a components extracted 67 | P a g e - RESEARCH PROJECT– BMBR5103 APPENDIX - MULTILE REGRESSION ANALYSIS Descriptive Statistics Mean Std Deviation N SAS -8.1030496E-17 1.00000000 211 RLI.TNG -8.4187528E-17 1.00000000 211 ASR.RSP -2.1046882E-17 1.00000000 211 EMP -6.8402366E-17 1.00000000 211 Correlations SAS 1.000 RLI.TNG 541 ASR.RSP 568 EMP 278 RLI.TNG 541 1.000 000 000 ASR.RSP EMP SAS RLI.TNG ASR.RSP EMP SAS RLI.TNG ASR.RSP EMP 568 278 000 000 000 211 211 211 211 000 000 0.000 500 500 211 211 211 211 1.000 000 000 500 500 211 211 211 211 000 1.000 000 500 500 211 211 211 211 SAS Pearson Correlation Sig (1-tailed) N Variables Entered/Removed Model Variables Entered EMP, ASR.RSP, RLI.TNG a b Variables Removed Method Enter a All requested variables entered b Dependent Variable: SAS 68 | P a g e - RESEARCH PROJECT– BMBR5103 b Model Summary Model R Square R Adjuste dR Square Change Statistics Std Error of the Estimate R Square Change F Change 693 155.522 a 832 693 688 0.55836725 a Predictors: (Constant), EMP, ASR.RSP, RLI.TNG b Dependent Variable: SAS df1 df2 Sig F Change 207 0.000 b ANOVA Sum of Model df Squares Regression 145.463 Mean Square F 48.488 Residual 64.537 207 Total 210 210 a Predictors: (Constant), EMP, ASR.RSP, RLI.TNG b Dependent Variable: SAS Sig a 000 155.522 312 a Coefficients Standa Unstandardized Model Coefficients rdized Coeffic Correlations t Collinearity Statistics Sig ients Std B Beta Zero- Par order tial Part Tolera VIF -4.55E-18 Error 038 000 1.000 RLI.TNG 541 039 541 14.038 000 541 698 541 1.000 1.000 ASR.RSP EMP 568 278 039 039 568 278 14.752 7.202 000 000 568 716 278 448 568 278 1.000 1.000 1.000 1.000 (Constant) nce a Dependent Variable: SAS 69 | P a g e - RESEARCH PROJECT– BMBR5103 a Collinearity Diagnostics Model Dimension Eigenvalue a Dependent Variable: SAS Variance Proportions Condition Index (Constant) RLI.TNG ASR.RSP EMP 1.000 1.000 1.000 1.000 1.00 00 00 00 00 15 85 00 00 85 15 00 00 00 00 1.00 1.000 1.000 1.000 1.000 Residuals Statistics Minimum Predicted Value -3.7881887E0 Residual -2.40286088E0 Std Predicted Value -4.552 Std Residual -4.303 a Dependent Variable: SAS a Maximum Mean 1.1551181E0 1.27703047E0 1.388 2.287 0000000 -8.41546422E-17 000 000 Std Deviation 83227395 55436456 1.000 993 70 | P a g e N 211 211 211 211 - RESEARCH PROJECT– BMBR5103 APPENDIX - SURVEY RESULT (Vietnamese version) STT Nội dung Ngân hàng thực dịch vụ điện tử (quản lý tài khoản, tốn hóa đơn, chuyển tiềnđiện tử, …) hứa Khi anh / chị có thắc mắc hay khiếu nại, ngân hàng giải thỏa đáng Ngân hàng thực dịch vụ ngân hàng điện tử từ lần Kết (n=211) 71 | P a g e - RESEARCH PROJECT– BMBR5103 Ngân hàng cung cấp dịch vụ ngân hàng điện tử vào thời điểm mà ngân hàng hứa Ngân hàng thông báo cho anh / chị dịch vụ ngân hàng điện tử thực Nhân viên ngân hàng phục vụ anh / chị cách tận tình Nhân viên ngân hàng sẵn sàng giúp đỡ anh / chị 72 | P a g e - RESEARCH PROJECT– BMBR5103 Nhân viên ngân hàng phục vụ anh / chị chu đáo cao điểm Nhân viên ngân hàng ngày tạo tin tưởng anh / chị Anh / chị cảm thấy an 10 toàn sử dụng dịch vụ ngân hàng điện tử ngân hàng Nhân viên ngân hàng 11 tỏ lịch sự, nhã nhặn với anh / chị 73 | P a g e - RESEARCH PROJECT– BMBR5103 Nhân viên ngân hàng 12 có kiến thức chun mơn trả lời câu hỏi anh / chị 13 Ngân hàng thể quan tâm đến cá nhân anh / chị Ngân hàng có 14 nhân viên thể quan tâm đến cá nhân anh / chị Ngân hàng thể 15 ý đặc biệt đến quan tâm nhiều anh / chị 74 | P a g e - RESEARCH PROJECT– BMBR5103 Nhân viên ngân hàng 16 hiểu nhu cầu đặc biệt lợi ích anh / chị Ngân hàng có trang 17 thiết bị đại 18 Cơ sở vật chất ngân hàng trông hấp dẫn, trang web ngân hàng trông chuyên nghiệp 19 Nhân viên ngân hàng có trang phục gọn gàng, lịch 75 | P a g e - RESEARCH PROJECT– BMBR5103 Các phương tiện vật chất hoạt động dịch vụ hấp dẫn 20 ngân hàng (trang web ngân hàng thiết bị dễ dàng tiếp cận thực giao dịch điện tử) 21 Ngân hàng bố trí thời gian làm việc phương tiện vật chất thuận tiện cho việc giao dịch điện tử 22 Anh / chị hồn tồn hài lịng với chất lượng dịch vụ ngân hàng điện tử ngân hàng 23 Anh / chị giới thiệu dịch vụ ngân hàng điện tử ngân hàng cho người khác 76 | P a g e - RESEARCH PROJECT– BMBR5103 24 Trong thời gian tới, anh / chị tiếp tục sử dụng dịch vụ ngân hàng điện tử ngân hàng 77 | P a g e