INTRODUCTION
Rational of the study
Financial institutions, particularly banking plays an important role in economic development of almost countries in the world and Vietnam is not an exception
The Vietnamese banking industry has experienced substantial growth in recent years, paralleling the country's socioeconomic development Numerous banks have either been established or expanded their operations by opening branches nationwide and introducing new services tailored to customer needs Retail banking in Vietnam is particularly appealing to both domestic and foreign banks, as the market remains underexploited, presenting significant opportunities for growth.
With a population of 86 million, Vietnam is witnessing a rising demand for retail banking services, fueled by increasing incomes and the country's economic growth, particularly following its accession to the WTO.
Vietnam's banking sector faces both opportunities and challenges in attracting new customers while retaining existing ones, as an increase in customer base directly correlates with higher profits for banks.
Satisfying customers is the priority target in order to get the success of a firm
Customer satisfaction is crucial in today's competitive business landscape, serving as a vital element for banks to retain existing clients and attract new ones.
In addition, retail banking industry is facing a stressful competition among domestic banks and foreign banks as the globalization and world integration
To ensure their survival and growth, banks must prioritize customer satisfaction.
Statement of the problem
Domestic banks have long acknowledged the significance of enhancing retail banking services To achieve this, they have invested in advanced core banking software, adopted innovative technologies, expanded their branch networks, and introduced a variety of new services aimed at attracting more customers.
In today's competitive landscape, banks face challenges in differentiating their products due to the proliferation of distribution channels and the rapid imitation of new services by competitors To gain a competitive edge, customer satisfaction has become a crucial strategy for banks.
Customer satisfaction significantly boosts the likelihood of repeat service usage and encourages positive word-of-mouth referrals Conversely, dissatisfied customers are more prone to switch to competing brands and share negative feedback.
Customer satisfaction is significantly influenced by several key factors, including price, product quality, service quality, personal and situational factors, as well as product diversification and uniqueness.
Service quality is crucial for establishing a competitive edge in the banking industry, as highlighted by Lewis (1993) It significantly influences customer satisfaction, prompting bank management to enhance their offerings by differentiating their services from those of competitors.
This study examines determinants on customer satisfaction with focus on service quality dimensions of retail banking services in Vietnam commercial banks in
Ho Chi Minh City serves as the economic, social, and educational hub of South Vietnam, boasting a significant population and a multitude of banks and their branches.
Research Objective
The aims of this study as following:
- To identify main factors of customer’s perception on customer service quality in Vietnam retail banking sector
- To measure the effects of these key factors on the overall customer satisfaction in Vietnam retail banking sector
- To recommend some solutions to increase customer satisfaction.
Research question
The study is set to answer following questions:
- What are the key factors of customer’s perception on service quality of retail banking services in Vietnam commercial banks?
- How can these factors influence on customer satisfaction?
- What the recommendations should be needed to improve customer satisfaction in Vietnam commercial banks?
Scope and limit of the research
This research focuses on individual customers residing in Ho Chi Minh City who utilize retail banking services from seven commercial banks in the area The findings will be specific to these banks and will rely solely on the data gathered from this study.
Research methodology
Data was collected from annual Vietnam commercial banks reports, from internet, involved books and previous related research
Qualitative research was conducted through in-depth interviews with 30 customers utilizing retail banking services at commercial banks to identify and refine service quality dimensions The interviews focused on factors influencing customer satisfaction and dissatisfaction, revealing key themes such as tangibles, service quality (including employee attitude and willingness to assist), reliability (demonstrated by employees' ability to provide accurate information and timely services), empathy, technology, waiting time, interest rates, and transaction costs The findings from this research will inform the design of a questionnaire for a more comprehensive official study.
Quantitative research was conducted by distributing questionnaires to individual customers of seven commercial banks in Ho Chi Minh City through direct interaction, email, and online platforms The data collected from this process was analyzed using SPSS version 16.0 to assess customer satisfaction levels.
The structure of the research
This research includes five chapters:
This introduction provides a comprehensive overview of the research, outlining the rationale behind the study, the problem statement, research objectives, research questions, and the scope and limitations of the research methodology.
LITERATURE REVIEW
Vietnam retail banking sector
Over the past two decades, Vietnam's banking system has experienced remarkable growth alongside the country's economic development It comprises various institutions, including one bank for social policies, one development bank, three state-owned commercial banks, forty commercial joint-stock banks, five joint-venture banks, five fully foreign-owned banks, and thirty-six branches of foreign banks.
Table 2.1: Quantity of banks from 1991 to 2009
Foreign bank and branches of foreign bank 0 8 18 24 26 26 29 31 41 41 41
The data in Table 2.1 highlights that the growth of Vietnam's banking sector is largely driven by commercial joint-stock and foreign banks, showcasing its appeal to both domestic investors and international financial institutions Notably, the retail banking sector emerges as a particularly promising area, attracting significant interest from bankers.
Retail banking involves financial institutions conducting transactions directly with individual consumers rather than corporations or other banks Typically offered by commercial banks, retail banking provides a variety of personal banking services, including savings and checking accounts, certificates of deposit, mortgages, personal loans, and various card options such as debit and credit cards.
Today, retail banking has largely transitioned to electronic platforms, enhancing convenience and efficiency for customers Automated Teller Machines (ATMs) play a crucial role in this digital shift, allowing users to access their accounts and conduct transactions seamlessly This evolution in banking technology signifies a move towards a more streamlined and user-friendly experience for consumers.
Automated Teller Machines (ATMs) and virtual retail banking, commonly referred to as internet banking, empower customers to conduct financial transactions online Home banking enables users to perform various tasks, including money transfers, fund transfers, and bill payments, from anywhere without visiting a physical bank Additionally, phone banking allows customers to manage their accounts and access services like checking account information and foreign exchange rates at any time via telephone.
In an open economy, retail banking services are crucial for commercial banks, providing a stable revenue source, enhancing competitiveness, mitigating risks, and expanding market share The retail banking sector significantly reduces transaction costs, promotes a cashless economy, stimulates business activities, and improves people's lives by effectively utilizing potential capital Additionally, it offers a wide range of convenient and secure services to customers Consequently, the development of retail banking services is an essential trend for both international and Vietnamese banks.
Vietnam is considered as an attractive retail banking market as the whole market potential, it is clear that there is a huge opportunity for new entrants
Firstly, it has a strong reputation for both political stability and a prosperous business environment among Asian nations and became a member of WTO in Jan
2007, under which Vietnam committed to integrate into the world market resulted in the five 100% foreign banks currently established in Vietnam
Vietnam's growing population and increasing income levels present significant opportunities for retail banking; however, many individuals, particularly in rural areas, remain unaware of banking services In Ho Chi Minh City, despite its large population and high bank density, only 17% of residents have bank accounts and engage in non-cash transactions, highlighting the potential for expansion in the retail banking sector.
Vietnam's population of approximately 86 million includes a significant youth demographic under 33, which represents over 60% and frequently alters their shopping habits This trend presents a prime opportunity for both foreign and domestic banks to enhance their credit services Currently, Vietnamese commercial banks provide only about 10% of retail services compared to international banks, yielding an average turnover of 6% to 12% from this sector, while developed nations typically reach around 50% Consequently, there remains a substantial market potential that invites increased competition.
The retail banking sector in Vietnam is facing intense competition, particularly from foreign banks, which have significantly greater resources and advanced technology Domestic banks, often considered small in comparison, are under pressure to increase their chartered capital to at least 3 million VND by the end of 2010, as mandated by the State Bank This has led to a trend of mergers and partnerships between smaller and larger banks to enhance competitiveness Despite improvements in technology, management, and service diversification, domestic banks struggle with service quality and competitive capabilities Notably, Agribank leads with the most branches at 115, followed by BIDV with 103, while joint stock banks like Techcombank and Sacombank are also expanding their presence Overall, the retail banking landscape is evolving as banks adapt to meet the demands of increasingly sophisticated customers.
The retail banking sector in Vietnam is rapidly evolving, driven by heightened competition, a wider range of products and services, and increased online engagement To thrive in this changing landscape, commercial banks must focus on strengthening relationships with current clients while also attracting and converting potential customers.
Customer satisfaction
Customer expectation is the ideals or feelings that a customer has about the product or service provided by a company based on what they need and expect from it
This explain why two customers use the same product or service but each of them has the different opinions about it depends on what he or she expected
Customer expectations are shaped by perceptions of products or services, influenced by past experiences, advertising, word-of-mouth, competitor awareness, and brand image Before engaging with a product or service, customers establish standards and expectations, which they use to evaluate performance and determine satisfaction For service-oriented organizations, understanding these expectations is crucial to prevent customer dissatisfaction Meeting customer expectations leads to increased customer satisfaction.
Customer satisfaction is a critical focus for marketers and consumer researchers, as it reflects how well a customer's needs and expectations are met It encompasses the customer's overall reaction and assessment of their fulfillment experience.
Customer satisfaction is a crucial factor for success in today's competitive business landscape It is defined as the overall attitude of customers towards a service provider and is influenced by the gap between their expectations and the actual experience received (Hansemark & Anbinsson, 2004) Zeithaml and Bitner (2000) emphasize that satisfaction arises from evaluating whether a product or service meets customer needs and expectations Kotler (2000) further describes satisfaction as the feelings of pleasure or disappointment that result from comparing a product's perceived performance to expectations Ultimately, customer satisfaction reflects the response to the difference between anticipated and actual performance of goods or services.
2.2.3 The importance and benefits of customer satisfaction
In the early 1960s, marketing transitioned from a product-oriented approach to a customer-centric focus, emphasizing the importance of understanding customer needs and desires As Zairi (2000) stated, "Customers are the purpose of what we do," highlighting that businesses depend on their customers for success In today's competitive marketplace, prioritizing customer satisfaction is essential for achieving business goals and establishing a sustainable competitive advantage.
According to Evans and Berman (1997), companies with satisfied customers have a significant opportunity to foster loyalty, leading to long-term purchases and sustainable profit growth Hoyer and Maclnnis (2001) emphasize that satisfied customers are the foundation of successful businesses These customers tend to focus less on price and competitors, are willing to pay more for new offerings, and actively promote the brand through positive word-of-mouth As a result, companies with high customer satisfaction incur lower service costs compared to acquiring new customers, reducing marketing expenses while enhancing their reputation The benefits of customer satisfaction are illustrated in Figure 2.1.
Figure 2.1: The Benefits of customer satisfaction
Customer Service quality
Customer service is essential for fostering customer loyalty by effectively meeting and exceeding their needs and expectations It encompasses the support provided to customers before, during, and after a purchase, ensuring a positive experience throughout their journey.
Customer service encompasses a range of activities aimed at improving customer satisfaction, which reflects how well a product or service meets customer expectations (Turban et al., 2002) It plays a crucial role in establishing competitive advantage and enhancing overall value for customers.
Many market products consist of both tangible goods and intangible services, with the banking industry exemplifying how essential services are for customer retention and attraction In contrast, other industries view services as supportive to their physical products Key characteristics of services—intangible, inseparable, variable, and perishable—distinguish them from physical goods and complicate customer evaluation during preconsumption, consumption, and post-consumption stages By comprehending these service characteristics, organizations can enhance customer experience, improve performance, and deliver superior services.
- Intangibility: service can not be seen, touched, or tasted making consumers feel difficult to measure service value and quality
Inseparability in services means that production and consumption occur simultaneously, distinguishing them from goods that can be manufactured and stored for future use This characteristic highlights the integral role of service providers in the delivery process; for example, a bank teller is not only part of the service but also influences the overall customer experience and service outcome.
- Variability: as service is produced and consumed simultaneously and provider becomes a part of service offering so the service is never exactly repeated
- Perishability: it is impossible to store services in inventory as production and consumption are at the same time
Organizations today recognize the significance of customer-centered philosophies, with a primary challenge being the management of service quality, which is crucial for ensuring customer satisfaction.
Service quality is essential for customer satisfaction and serves as a key determinant in distinguishing organizations from their competitors According to Spreng and Machoy (1996), prioritizing service quality can provide a significant competitive advantage, enabling organizations to build lasting relationships with their customers.
Service quality is defined as the subjective assessment customers make when comparing their expected service with the actual service received (Gefan, 2002) According to Parasuraman et al (1985, 1988), service quality is determined by the discrepancies between customer expectations of a service provider's performance and their evaluations of the services they have received.
2.3.4 Gap model of service quality
There are many researched models done to adjust the quality of services
However, the work of Parasuraman, Zeitham and Berry (1985) is the most popular with the using of 5 major gaps:
Gap 1: difference between customer expectations and management perceptions of customer expectations This is the gap between what customers want and what managers think they want
Gap 2: difference between management perceptions of customer expectations and quality specifications set for service delivery
Gap 3: difference between the quality specifications set for service delivery and the service actually delivered
Gap 4: difference between the actual quality of service delivery and the quality of service delivery described in the firm's external communications
Gap 5: difference between customer expectations and perceptions For instance, the firm promises to deliver in its communication with customer, then if a promise is broken by the organization (what it is actually delivered to the customer), the customer will perceive service quality to be lower than expected nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
To meet customer expectations, firms focus on minimizing the five gaps identified in the service quality model developed by Parasuraman and his colleagues in 1985 This model, illustrated in Figure 2.2, highlights the critical areas where service delivery can fall short, prompting businesses to enhance their strategies for improved customer satisfaction.
Figure 2.2: Model of service quality gaps (Parasuraman at el., 1985)
Measuring service quality is essential for identifying areas that require improvement from the users' perspective, ensuring that services align more closely with their expectations, and facilitating comparisons with competitors.
Transition of Perceptions into Service Quality Specs
Management Perceptions of Consumer Expectations
Service Delivery (Including pre- and post-contacts)
GAP 2 nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg model of Parasuraman at el., (1985) is considered as the most used-approach to measure service quality in comparing customers’ expectations and their perceptions based on the actual service delivered They evolved a set of ten dimensions including:
- Reliability : Ability to perform the promised service dependably and accurately
- Responsiveness: Willingness to help and respond to customer needs
- Competence: having the required skill and knowledge to provide the service
- Access: the ease and convenience of accessing the services such as opening time, location, alternative methods to access services, etc
- Courtesy: politeness, respect, consideration, and friendliness of staff at all level
- Communication: keeping customers informed, understanding well service and listening to them
- Credibility: trustworthiness, believability, reputation and image of the service provider
- Security: physical safety, financial security and information confidentiality
- Understanding customers: knowing customers and their needs
- Tangibles: appearance of physical facilities, equipment, individual and communication materials
These 10 dimensions comprise all aspects of the service but it is so complex in measurement, then Parasuraman at el., (1988) reduced the ten dimensions to five specific dimensions after finding out the correlation among the original ten dimensions
- Tangibles: appearance of physical facilities, equipment, individual and communication materials
- Reliability: Ability to perform the promised service dependably and accurately
- Responsiveness: Willingness to help and respond to customer needs
Assurance is demonstrated through the knowledge and courtesy of employees, who effectively convey the trust and confidence that the firm instills in its customers.
- Empathy: Caring, individualized attention the firm provides its customers.
RESEARCH DESIGN
Research model
A review of the literature identifies six key dimensions that define the quality of retail banking services, forming a proposed model specifically tailored for commercial banks in Vietnam.
Reliability is defined as the service provider's capability to deliver promised services consistently and accurately When customers believe that the services meet their expectations, they experience satisfaction due to the perceived high quality Thus, the first hypothesis is established.
H6 nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
- H1: Reliability has a positive impact on customer satisfaction in retail banking sector in case of Vietnam commercial banks
Responsiveness is the service provider's readiness to assist customers and deliver timely service When customers experience this willingness and promptness, they perceive the quality of service as high, leading to greater satisfaction Thus, the second hypothesis posits that increased responsiveness correlates with enhanced customer satisfaction.
- H2: Responsiveness has a positive impact on customer satisfaction in retail banking sector in case of Vietnam commercial banks
Assurance is the capability of service providers to instill trust and confidence in customers Often, customers struggle to assess service quality without prior experience Consequently, the degree of customer trust significantly influences their evaluation of service quality.
The more customers’ trust the service provider, the better the customers’ perception on the service quality then the higher satisfaction customers get
Therefore, the third hypothesis is:
- H3: Assurance has a positive impact on customer satisfaction in retail banking sector in case of Vietnam commercial banks
Customers are more likely to be satisfied when they feel they are receiving personalized attention from their service providers, along with convenient branch locations and accessible ATM machines.
Therefore, the fourth hypothesis is:
- H4: Empathy has a positive impact on customer satisfaction in retail banking sector in case of Vietnam commercial banks
During the service delivery process, client is directly interacting with bank’s staff, physical facilities and other elements such as communication materials
Customers assess service quality through tangible cues, as services themselves are intangible Positive perceptions of physical facilities, equipment, staff appearance, and communication materials significantly enhance customer satisfaction Therefore, the fifth hypothesis emphasizes the importance of these tangible elements in shaping customer experiences.
- H5: Tangibles has a positive impact on customer satisfaction in retail banking sector in case of Vietnam commercial banks
Customers tend to express higher satisfaction when they perceive that the service provider's charges are reasonable or even lower than expected, as well as when they pay reasonable or higher interest rates This leads to the conclusion that a positive perception of cost and interest directly correlates with increased customer satisfaction.
- H6: Social responsibility has a positive impact on customer satisfaction in retail banking sector in case of Vietnam commercial banks.
Research design
This study investigates the key factors influencing service quality and its impact on customer satisfaction within the retail banking sector of Vietnam, specifically in Ho Chi Minh City The proposed model identifies six determinants of service quality, which are assessed for their effects on overall customer satisfaction in Vietnamese commercial banks Based on the analysis and evaluation, the study concludes with recommendations for banks to enhance customer satisfaction and foster loyalty.
This research is conducted in the two steps comprises qualitative research and quantitative research as following:
Qualitative research was conducted through face-to-face interviews with bank customers to identify key factors of service quality for a questionnaire While this model is based on existing theories, its application in the Vietnamese retail banking sector may present unique differences.
Quantitative research was conducted by distributing questionnaires to customers of seven commercial banks in Vietnam, utilizing direct delivery, email, and internet methods to gather data effectively.
- Basic concepts of service quality and customer satisfaction
- Initial model (based on previous study and deep interview)
- Hypotheses nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
The research process begins by identifying the research problems, which leads to the formulation of objectives and questions A literature review is conducted to explore concepts related to service quality and customer satisfaction, particularly focusing on the SERVQUAL model, a widely recognized framework in the service industry Through in-depth interviews with banking customers and insights from the literature review, an initial model is proposed, comprising six hypotheses An official study follows, involving the distribution of 200 questionnaires to gather data for analysis The data is then analyzed using Cronbach’s Alpha and Exploratory Factor Analysis (EFA) to refine the model by eliminating unsuitable factors Finally, regression analysis is performed to assess the relationships between the independent and dependent variables within the model.
The result of the research is found out and we can give out some conclusions and recommendations based on that result.
Official research
Through the qualitative research and previous theories, the variables of retail banking service quality are defined to test in Vietnam commercial banks as following:
Table 3.1: Summary of service quality factors and measurement scale
The bank provide service as promised Rel.1
When you have a problem, the bank shows a sincere interest in solving it Rel.2
The bank provides the service right at the first time Rel.3
The bank promises to do something in a certain time (card delivery time, problem solving time, etc) Rel.4 Reliability
The bank ensures meticulous, error-free record-keeping and provides the latest resources for downloading essential documents Their dedicated staff is committed to delivering prompt and efficient services, always ready to assist customers with any inquiries This responsiveness highlights the bank's focus on customer satisfaction and support.
The bank’s staffs are willing to meet your demand Res.9
The behaviors of bank’s staffs instill confidence in you Ass.10
You feel safe in your transaction with the bank Ass.11 The bank’s staffs are consistently courteous with you Ass.12 Assurance
The bank’s staffs have the knowledge to answer your questions Ass.13
The bank’s staffs who deal with customer in a caring fashion Emp.14
The bank has your best interest at heart Emp.15 The bank’s staffs understand your specific needs Emp.16
The bank has operating hours convenient to all its customers Emp.17
The bank has ATM and branch locations convenient to all its customers Emp.18
The bank has modern looking equipment Tan.19
External and internal physical features are convenient and professional ( counter location, waiting-seat, etc) Tan.20
The bank’s reception desk employees are appealing and neat appearance Tan.21
The bank’s website and brochures are visually appealing and easily understanding Tan.22
The bank consistently provides excellent services at competitive interest rates, ensuring customer satisfaction and affordability.
Overall items of customer satisfaction involved in the retail banking service quality of Vietnam commercial bank and Vietnam commercial bank in general are suggested as Table 3.2
Table 3.2 : Overall customer satisfaction and measurement scale
Overall, you are satisfied with the bank’s service quality Gen.24
Overall, you are satisfied with the bank Gen.25
You are likely to recommend the bank to others Gen.26
The questionnaire consists of two sections: the first part gathers personal customer information for statistical analysis, while the second part features 26 items designed to evaluate the research model This section includes 23 service quality items, which have been converted into Likert scales Respondents are asked to express their perceptions of their bank for each item using a five-point scale, ranging from "1=Strongly disagree" to "5=Strongly agree."
Strongly agree”, the rest 3 items relating to overall customer satisfaction were also used a five-point scale ranging from “1= extremely dissatisfy to 5= extremely satisfy”
The questionnaire can be found out at appendix of this research
This research focuses on commercial bank customers utilizing retail banking services at seven prominent banks in Ho Chi Minh City, Vietnam The banks included in the study are Vietcombank, Sacombank, ACB, Techcombank, EAB, BIDV, and others The findings aim to enhance the understanding of customer experiences and service quality within Vietnam's commercial banking sector.
Sample was selected by both random and convenient method The data was collected by delivering questionnaire directly to some customers, via email and sending web link survey
The appropriate sample size is influenced by the measurement method used Hoetler (1983) established that a minimum sample size of 200 is necessary, while Bollen (1989) demonstrated that the sample size should be determined by the number of variables, requiring at least five samples for each variable Hatcher also supports these findings.
In this study, we followed the guideline that the sample size should be five times greater than the number of variables, utilizing a regression method with a sample of 133 respondents The research questionnaire comprised 23 tentative questions, establishing that a minimum sample size of 115 is acceptable for analysis To collect data, we distributed 100 questionnaires directly to customers, while also sending an email and sharing a web-linked survey with 100 friends The response rate was 57% for the direct distribution and 76% for the online survey.
This chapter presents the proposed research model derived from the literature review and outlines the research methodology employed in the study It details the data collection methods, the research process, the verification of measurement scales, the design of the questionnaire, and the analysis techniques used.
CHAPTER 4 : DATA ANALYSIS AND FINDINGS
A total of 200 questionnaires were distributed to customers who utilized retail banking services from seven commercial banks in Ho Chi Minh City, including Sacombank, Vietcombank, ACB, EAB, Techcombank, BIDV, and Agribank Out of these, 133 questionnaires were deemed suitable for data analysis, which was conducted using SPSS 16.0 software.
Table 4.1 outlines key characteristics of the sample, including age, gender, marital status, average monthly income, profession, and banking services used Among the 133 respondents, the gender distribution is nearly equal, with males at 51.9% and females at 48.1% The majority of participants (69.2%) are aged between 25 and 40 years, while those under 25 make up 26.3% and individuals over 40 represent 4.5% In terms of marital status, 58.6% are single and 41.4% are married The average income levels are relatively low, with 42.1% earning between 6 to 10 million VND and 38.3% earning less than 5 million VND.
In the realm of retail banking services, office staff with an average income ranging from 6 to 10 million VND represent the largest group of users at 54.9% This is followed by managers at 15%, students at 12%, and workers at 5.3% Additionally, homemakers account for 1.5%, retirees make up 0.8%, and 10.5% of customers belong to various other occupations.
Regular evaluations of monthly service usage reveal that 48.9% of customers engage with their bank 1 to 2 times, while 28.6% transact 3 to 4 times, and 20.3% exceed 4 transactions Vietcombank and EAB stand out as the leading commercial banks, boasting 57 and 56 clients respectively.
In Vietnam, the government promotes salary payments via ATM cards, leading to 121 out of 133 surveyed customers utilizing bank card services Among these, 61 customers maintain deposit accounts, highlighting the growing trend of digital banking in the country.
Student Home-maker Worker Office staff Manager Retiree Other
Average income per month (VND/month)
No 1-2 times 3-4 times More than 4 times
Times of transaction per month
Loans Yes 29 21.8 nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Statistical Results
Table 4.2 : Descriptive statistics of service quality measurement
N Mean Std Deviation Minimum Maximum
Sor.23 133 3.31 971 1 5 nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Table 4.2 indicates that the measurement of bank reliability, specifically Rel.1, has a low mean score of 4.02, suggesting that customers generally trust the promised services Several variables closely align with a score of four, including Reliability (Rel.3, Rel.4, Rel.5), Assurance (Ass.11), and Tangibles (Tan.21), reflecting the growing customer demands driven by rising incomes and living standards Banks are responding by enhancing their facilities and training staff to build customer confidence and minimize transaction risks However, other variables show mean scores ranging from 3.04 to 3.69, indicating a medium perception of retail banking service quality among customers of Vietnamese commercial banks Notably, items related to Empathy and Social Responsibility received the lowest scores, highlighting customers' concerns that their needs are not adequately addressed.
The descriptive statistical analysis of service quality in Vietnam's commercial banks reveals that customer evaluations vary significantly Certain variables are particularly well-regarded by customers, highlighting areas of strength in retail banking services.
Many customers remain dissatisfied with banking services, as indicated by mean scores below four, which reflects a level of "agree" with the statements This suggests that customer expectations are not being met by the banks.
Table 4.3 : Descriptive statistics of customer satisfaction measurement
Gen.26 133 3.27 845 1 5 nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
The mean score for overall customer satisfaction, as displayed in Table 4.3, indicates a medium level of satisfaction, with all scores falling below four on a five-point Likert scale This suggests that customers are generally dissatisfied with the services provided by commercial banks in Vietnam.
CONCLUSIONS AND RECOMMENDATIONS
Conclusions
This study highlights the service quality of commercial banks in Vietnam, identifying three key factors: Serving Quality, Empathy, and Tangibles In today's competitive landscape, banks recognize that achieving customer satisfaction is essential for fostering loyalty and increasing profits The findings indicate that customers are more satisfied when service quality is effectively delivered and managed.
Meeting customer demands leads to satisfaction, encouraging loyalty and increased engagement with the bank, including referrals to others This is why bankers prioritize service quality.
This research focuses on how customers perceive and evaluate the service quality provided by commercial banks in Vietnam, aiming to enhance banking leaders' understanding of customer perceptions and inform customer-oriented strategies Service quality significantly influences customer satisfaction, and to retain customers, banks must improve satisfaction levels Key factors affecting service quality should be prioritized to boost its impact on customer satisfaction The study identifies three main dimensions of service quality: Serving Quality (0.363), Tangibles (0.253), and Empathy (0.233), all of which positively affect customer satisfaction.
Delivering high-quality service significantly enhances customer satisfaction by instilling confidence in clients regarding the bank's ability to provide error-free services This encompasses the genuine care and professionalism exhibited by bank staff in both service delivery and problem resolution.
Tangibles play a crucial role in customer satisfaction, as they encompass the arrangement and decoration of physical facilities, creating a comfortable environment for customers Additionally, the appearance of bank employees significantly influences customers' first impressions, highlighting the importance of professionalism in service delivery.
Beside that, customers will feel better if they easily understand and be familiar with the services stated on the brochures or website
Empathy plays a crucial role in enhancing customer satisfaction by enabling bank employees to understand and address customers' needs effectively This skill ensures that customers feel valued, as they recognize that their best interests are always prioritized.
The service quality of retail banking services in Vietnam's commercial banks is currently rated at a medium level, indicating customer dissatisfaction Amidst intense competition, these banks must implement changes to enhance customer satisfaction Prioritizing improvements in the three key determinants is essential to propose effective solutions that will elevate customer satisfaction levels.
Recommendations
In order to satisfy customers, bankers have to pay more attention to service quality and offer customer-oriented services to enhance customer satisfaction
The dimensions of "Serving Quality" and "Empathy" encompass ten items that primarily focus on employee behaviors, highlighting the crucial role of human resources in Vietnam's retail banking operations.
M K Brady and J J Cronin Jr., customer’s perceptions of service quality will be impacted by customer – oriented behaviors of employees Employees directly influence to customer’s perception, customer feelings through their willingness to help and serve customers with 100% correct, their personal attention, listen, adapt and be flexible in delivering what individual customers need These inspire the safe and confident feelings to customers The important thing is how bank leaders can optimize human performance, effort, thinking and innovation which make the services more different or better nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
To enhance customer interactions, it is essential for Vietnam's commercial banks to provide regular and in-depth training for their staff Ongoing professional development and communication skills training will empower bankers to deliver exceptional service By equipping employees with comprehensive knowledge and fostering a friendly, professional demeanor, banks can build customer trust and confidence effectively.
Bank managers should communicate the organization's customer-focused objectives to employees and encourage them to share their thoughts and ideas This approach can foster enthusiasm, commitment, and innovation among staff, ultimately enhancing service quality and ensuring customers feel secure and satisfied.
During the delivery process, bank staff should inform customers about available promotions and benefits, ensuring they prioritize customer interests By clearly explaining options and assisting customers in selecting the most convenient services, banks can enhance the overall transaction experience and maximize customer benefits.
Bank staff should actively engage with customers, encouraging them to share both positive and negative feedback about service quality By adopting a friendly attitude, they can better understand the underlying reasons for customer experiences, which will help identify areas for improvement and enhance overall service delivery.
In the realm of technology, the "Tangibles" dimension encompasses three key elements that influence customer perceptions of Vietnam's commercial banks This crucial factor significantly impacts customer satisfaction and must be optimized Professional and convenient physical facilities are essential for creating a comfortable environment for customers during transactions Additionally, modern and advanced technology should be regularly upgraded to reduce errors and minimize wait times, ultimately enhancing service delivery efficiency and fostering greater customer confidence.
To ensure long-term success, bank leaders must implement strategies focused on service quality by hiring the right individuals, nurturing their potential, and retaining top talent.
Research limitation
This research highlights the critical role of service quality and identifies key factors influencing it, along with strategies to enhance customer satisfaction Nevertheless, the study acknowledges certain limitations that should be considered for future research.
The study's primary limitation is its small sample size of 133 participants, which is constrained by time Additionally, the research focuses exclusively on customers utilizing retail banking services from seven commercial banks in Ho Chi Minh City, rather than representing the entire retail banking sector in Vietnam.
Future research should aim to enhance the generalizability of the study by including a larger sample size and a broader range of respondents from various commercial banks across different cities in Vietnam.
Secondly, the study considers deeply the effect of factors of service quality on customer satisfaction only, and not measures the other components of satisfaction
This limitation suggest for the next study to consider other factors influence to customer satisfaction in Vietnam retail banking sector
This study primarily utilizes the SERVQUAL framework (Parasuraman et al., 1988) to assess service quality Future research should explore the integration of additional theories related to service quality to enhance understanding and application in this field.
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Interview Customers
1 Thông tin cá nhân a Họ và tên: b Giới tính: c Nghề nghiệp:
2 Anh/Chi hiện đang sử dụng dịch vụ của ngân hàng thương mại nào:
Khách hàng có thể lựa chọn sử dụng nhiều dịch vụ tài chính khác nhau, bao gồm gửi tiết kiệm, vay tiền, chuyển tiền, và các dịch vụ thẻ như thẻ ATM và thẻ tín dụng Ngoài ra, dịch vụ Internet banking, phone banking, và home banking cũng được cung cấp để đáp ứng nhu cầu quản lý tài chính linh hoạt Nếu có nhu cầu khác, khách hàng cũng có thể tìm hiểu thêm về các dịch vụ bổ sung.
Sự hài lòng của khách hàng khi sử dụng dịch vụ ngân hàng chịu ảnh hưởng bởi nhiều yếu tố quan trọng Đầu tiên, yếu tố hữu hình bao gồm cách trang trí bên ngoài và bên trong ngân hàng, cách bày trí trang thiết bị, và ngoại hình của nhân viên Tiếp theo, chất lượng giao dịch thể hiện qua sự mong muốn và thái độ phục vụ của nhân viên, cùng với thời gian chờ đợi được rút ngắn Mức độ tin cậy được đánh giá qua khả năng cung cấp dịch vụ đúng yêu cầu ngay lần đầu, thông tin chính xác và thực hiện đúng cam kết Sự thấu hiểu từ nhân viên cũng rất quan trọng, thể hiện qua việc họ quan tâm và sẵn sàng giúp đỡ khách hàng Yếu tố công nghệ, như hệ thống thiết bị hiện đại và chất lượng máy ATM, cũng đóng vai trò quan trọng Cuối cùng, chi phí và lãi suất cùng các yếu tố khác cũng góp phần không nhỏ vào sự hài lòng của khách hàng.
Khi sử dụng các dịch vụ ngân hàng, có một số yếu tố mà người dùng thường không hài lòng, bao gồm: chất lượng dịch vụ khách hàng, thời gian xử lý giao dịch chậm, phí dịch vụ cao, tính bảo mật chưa đảm bảo, và sự minh bạch trong thông tin Những vấn đề này có thể ảnh hưởng đến trải nghiệm của khách hàng và khiến họ không hài lòng với dịch vụ ngân hàng mà họ sử dụng.
As a part of the Master's program at the University of Economy in Ho Chi Minh City, this research aims to enhance customer satisfaction in Vietnam's commercial banks by evaluating customer perceptions of service quality We are conducting a survey targeting customers residing in Ho Chi Minh City who utilize services from banks such as Sacombank, Vietcombank, ACB, EAB, Techcombank, Agribank, and BIDV Your valuable insights and experiences would be greatly appreciated, and we kindly ask you to take 10 minutes to complete the questionnaire.
Your responses to this questionnaire regarding the quality of bank services are crucial for our research The findings will play a significant role in enhancing customer service in the banking sector Remember, there are no right or wrong answers; every response you provide is valuable and contributes to our study.
Thank you very much for your co-operation!
Please mark (X) corresponding to your answers
1.1 Gender Male Female Phone No.:………
The article discusses various roles such as students, homemakers, workers, office staff, managers, and retirees, highlighting the diverse responsibilities each group undertakes It emphasizes the importance of downloading the latest resources and materials, specifically mentioning the availability of comprehensive thesis documents Additionally, it encourages individuals to specify their unique needs or inquiries for tailored assistance.
≤ 5.000.000 VND 6.000.000 – 10.000.000 VND 11.000.000 – 15.000.000 VND 16.000.000 – 20.000.000 VND ≥ 20.000.000 VND
1.6 Presently, Which banks do you use their services?
1.7 Presently, What types of services do you use in the bank?
Deposits (checking accounts, savings accounts, certificates of deposit) Loans (mortgages, personal loans such as consuming loans, home loans, car loans, )
Transfers (money transfer, funds transfer) Card services (ATM, Visa card, Debit card, ) Internet banking (allows customer do transactions via internet such as: funds transfer, checking account information,…)
Home banking (allows customer do transactions at home instead of coming to the bank through internet or mobile phone such as: transfer, bill payment,…)
Phone banking (allows customer do transactions any where without coming to the bank through telephone such as: checking account information, interest rate, foreign exchange rate,…)
1.8 How many times do you usually have transaction with the bank per month?
Please specify how often you download the latest thesis: 1-2 times per month, 3-4 times per month, or more than 4 times per month Additionally, you can provide other details if necessary, such as your email address for further correspondence.
Code The measure of customer satisfaction level
Strongly disagree Disagree Neutral Agree Strongly agree
Rel.1 The bank provide service as promised
Rel.2 When you have a problem, the bank shows a sincere interest in solving it Rel.3 The bank provides the service right at the first time
Rel.4 The bank promises to do something in a certain time
(card delivery time, problem solving time, etc) Rel.5 The bank’s documents maintains error-free records
The bank's staff clearly communicates the timing of services, ensuring you know when to expect assistance They provide services promptly and are always eager to help, demonstrating a commitment to meeting your needs and demands effectively.
Ass.10 The behaviors of bank’s staffs instill confidence in you Ass.11 You feel safe in your transaction with the bank Ass.12 The bank’s staffs are consistently courteous with you
Ass.13 The bank’s staffs have the knowledge to answer your questions
Emp.14 The bank’s staffs who deal with customer in a caring fashion Emp.15 The bank has your best interest at heart Emp.16 The bank’s staffs understand your specific needs
The bank offers convenient operating hours to accommodate all customers, ensuring easy access to its services Additionally, it provides multiple ATM and branch locations for added convenience.
Tan.19 The bank has modern looking equipment
Tan.20 External and internal physical features are convenient and professional ( counter location, waiting-seat, etc)
Tan.21 The bank’s reception desk employees are appealing and neat appearance
Tan.22 The bank’s website and brochures are visually appealing and easily understanding
Sor.23 The bank always offers good services at reasonable cost / interest
Code The measure of customer satisfaction level
Extremely Satisfy Satisfy Neutral Dissati sfy Extremely Dissati sfy
Overall, customers express satisfaction with the quality of service provided by the bank Many are likely to recommend the bank to others, indicating a positive perception of its offerings.
Tôi là sinh viên chương trình cao học của trường Đại học Kinh Tế Tp Hồ Chí Minh
Tôi đang tiến hành nghiên cứu để đánh giá nhận thức của khách hàng về chất lượng dịch vụ khách hàng tại các ngân hàng Việt Nam, tập trung vào nhóm đối tượng là những người đang sinh sống, làm việc và học tập tại Tp Hồ Chí Minh Khách hàng được khảo sát sử dụng dịch vụ từ các ngân hàng lớn như Sacombank, Vietcombank, ACB, EAB, Techcombank, Agribank và BIDV.
Quý khách hàng hãy dành khoảng 10 phút để chia sẻ ý kiến và kinh nghiệm của mình về dịch vụ ngân hàng Phản hồi của quý khách là rất quan trọng và sẽ góp phần hữu ích cho nghiên cứu này.
Xin chân thành cám ơn quý khách hàng!
Xin quý khách hàng đ ánh d ấ u g ạ ch chéo (X) vào t ừ ng câu tr ả l ờ i t ươ ng ứ ng
Phần 1: Thông tin cá nhân
1.9 Giới tính Nam Nữ Điệnthoại:
1.10 Tình trạng hôn nhân Độc thân Đã có gia đình
Sinh viên Nội trợ Công Nhân Nhân viên văn phòng Quản lý
Nghỉ hưu Khác (Vui lòng ghi cụ thể: ……….)
Thu nhập bình quân hàng tháng của bạn là một yếu tố quan trọng để đánh giá tình hình tài chính cá nhân Việc nắm rõ mức thu nhập này giúp bạn lập kế hoạch chi tiêu và tiết kiệm hiệu quả hơn Hãy thường xuyên theo dõi và cập nhật thông tin về thu nhập để quản lý tài chính cá nhân một cách tốt nhất.
1.14 Ngân hàng bạn đang sử dụng dịch vụ (có thể chọn nhiều câu trả lời)
Sacombank Vietcombank ACB Đông Á Techcombank BIDV
Agribank Ngân hàng khác (Vui lòng ghi cụ thể : ……….)
1.15 Dịch vụ bạn đang sử dụng tại ngân hàng (có thể chọn nhiều câu trả lời)
Dịch vụ ngân hàng bao gồm tiền gửi với các sản phẩm như tài khoản vãng lai, tài khoản tiết kiệm và chứng chỉ tiền gửi Ngoài ra, ngân hàng còn cung cấp dịch vụ cho vay, bao gồm cầm cố thế chấp, vay tiêu dùng, vay mua nhà và vay mua xe Bên cạnh đó, dịch vụ chuyển tiền trong nước và quốc tế cũng được chú trọng, đáp ứng nhu cầu của khách hàng.
Dịch vụ thẻ (ATM, Visa card, Debit card, ) Internet banking (cho phép khách hàng thực hiện giao dịch thông qua internet như: Chuyển khoản, truy vấn tài khoản,…)
Dịch vụ ngân hàng tại nhà cho phép khách hàng thực hiện các giao dịch ngân hàng một cách thuận tiện ngay tại nhà thông qua internet hoặc điện thoại di động Khách hàng có thể thực hiện các hoạt động như chuyển khoản, chuyển tiền và thanh toán hóa đơn một cách nhanh chóng và dễ dàng.