Luận văn thạc sĩ tiếng anh customer satisfaction assessment for quality of customer service at thinh vuong commercial jointstock bank

INTRODUCTION

Rationale

The banking sector is experiencing intensified competition, driven by the entry of various credit institutions, including financial companies, non-bank financial entities, savings funds, and insurance firms This rivalry has escalated with the involvement of foreign banks and financial institutions that bring substantial financial resources, advanced technology, and expertise A significant challenge for the current banking system is maintaining competitiveness amid market liberalization and technological advancements As a result, joint stock commercial banks, state banks, and foreign banks are fiercely competing to offer services in Vietnam's financial market.

In today's competitive banking landscape, customer acquisition and loyalty are crucial for sustainable growth Banks must prioritize customer satisfaction to thrive, particularly in retail banking, which plays a significant role in their operations By targeting not only high-income individuals but also middle-income segments, banks face intensified competition in the retail market To succeed, it is essential for banks to enhance service quality and actively research innovative solutions to meet customer needs.

Customer satisfaction plays a crucial role in the development of banking systems, as loyal customers are vital for sustaining ongoing operations No bank can guarantee the longevity of its loyal customers, which is why each customer is treated as a "spiritual child," emphasizing the importance of nurturing relationships and prioritizing customer care By enhancing service quality and boosting customer satisfaction, banks can significantly improve their competitiveness and overall business performance The topic "Customer Satisfaction Assessment for Quality of Customer Service at Thinh Vuong Commercial Joint Stock Bank" explores various strategies to elevate the service quality at this institution.

Luận văn thạc sĩ Tài chính

Research objective

Identify the factors that affect the level of satisfaction of customers with the quality of services at VPBank Vietnam Prosperity Joint Stock Bank.

Analyzing factors influencing customer satisfaction on service quality at VPBank.

Recommend some solutions to improve the level of customer satisfaction for service quality at VPBank.

Research question

What is the specific service quality attributes affecting customer satisfaction towards service quality at VPBank.

What is the impact of service quality on customer service at VPBank

What are the suggestion and solution for improving the service quality ofVPBank.

Research methodology

The study was conducted through two main steps: Preliminary research using qualitative and quantitative methods.

 Preliminary research was conducted through qualitative research with group discussion and interviewing The purpose of this study was to adjust and supplement the bank's counter service quality scale.

A group discussion involving 10 participants, including transactors, relationship managers, managers, and branch managers, was conducted to create an initial scale and questionnaire Following this, interviews with 10 clients were carried out to refine the questionnaire's wording, ensuring clarity and appropriateness for formal research This process aimed to guarantee that customers understood the questions accurately, and it also facilitated a preliminary evaluation and adjustment of the scale.

Qualitative research aims to reevaluate current factors affecting customer satisfaction with VPBank's products and services while identifying additional influences By leveraging expert interviews in the banking sector, the study seeks to refine the research model and enhance primary data collection tools Furthermore, the author employs observational methods and conducts interviews with branch leaders to address operational shortcomings and propose effective solutions.

Quantitative research methods utilized face-to-face interviews and questionnaires, which were developed based on an adjusted scale from preliminary research findings The sample selection followed a convenient sampling method, with a sample size of n = 0.

A quantitative research study was conducted using face-to-face and online interviews to gather information from customers at bank branches in Hanoi The data collected was analyzed using SPSS software, employing Cronbach's alpha for reliability testing and exploratory factor analysis (EFA) to validate the scale Multiple regression analyses were then utilized to evaluate the model.

Research scope

This article focuses on the analysis and assessment of customer satisfaction regarding VPBank's customer care services, specifically targeting customers utilizing the services at the Lang Ha branch of VPBank Vietnam Commercial Joint Stock Bank.

The topic was researched at Prosperity Bank on the basis of collecting information from banks and survey forms when customers came to use products and services at the branch.

This study primarily investigates the factors influencing customer satisfaction with the products and services offered by Vietnam Prosperity Joint Stock Commercial Bank By analyzing these factors, the research aims to understand their impact on overall customer satisfaction, providing valuable insights for enhancing service quality and customer experience in the banking sector.

Report structure

Chapter 2: theorical background on customer satisfaction toward service quality of VPBank and research model of customer care service

Chapter 3: customer satisfaction at VPBank

Chapter 4: recommendation to improve service quality of VPBank

THEORICAL BACKGROUND ON CUSTOMER

Service, service quality and customer care

In economics, services are defined as intangible actions or results provided by one party to another, distinguishing them from tangible goods Unlike goods, services do not lead to ownership and lack physical attributes such as shape, size, or color Examples include tourism, medical, and educational services, which deliver benefits and fulfill consumer expectations Due to their intangible nature, services are often invisible, difficult to measure, and challenging to control in terms of quality They can vary based on customer interactions and are typically labor-intensive, making them impossible to store or stockpile.

Understanding the definition of services, particularly through P Kotler's perspective, enables both service providers and customers to grasp the essence of services, clarifying the responsibilities and benefits for each party involved in the service exchange relationship.

Banking service is a collection of features created by the bank to satisfy certain needs and wants of customers in the financial market.

Banking service products are made up of three levels:

The core service provided by the bank addresses essential customer needs and represents the primary value offered to clients This key value is what customers anticipate when utilizing the bank's services.

Tangible services in banking refer to the visible aspects of banking offerings, including their name, form, characteristics, symbols, and usage conditions These elements play a crucial role in helping customers recognize, differentiate, compare, and select banking services that best meet their needs.

Complementary services enhance existing products and benefits, providing additional value beyond the primary offerings By enriching banking services, these enhancements meet the evolving demands and expectations of customers, setting businesses apart from their competitors.

Understanding service quality is essential for implementing effective improvement measures for service providers Defining service quality is crucial not only for establishing development goals but also for guiding providers to leverage their strengths effectively Numerous definitions of service quality exist, highlighting its multifaceted nature.

Quality of service, as defined by Lewis and Booms, refers to the effectiveness of service delivery in aligning with customer expectations Consistently meeting these expectations is essential for creating a high-quality service experience.

According to Parasuraman, Zeithaml, and Berry (1985, 1988), the quality of service is defined as the degree to which a service meets customer expectations High-quality service consistently aligns with what customers anticipate, ensuring satisfaction and reliability in delivery.

Service quality is determined by the difference between customer expectations (A) and their actual experiences (B) when using a service.

B The greater the distance, the negative value the quality of service is not good, customers will not be satisfied On the other hand, if the distance is small or zero then the quality of service is considered to be excellent and excellent, the customer will be satisfied with that service.

Service quality is fundamentally linked to customer expectations and perceptions, making it a crucial factor in customer satisfaction When service providers deliver high-quality products and services that align with customer needs, they enhance customer happiness Consequently, to boost customer satisfaction, service providers must focus on improving service quality consistently.

A master's thesis in Finance emphasizes the importance of service quality in customer satisfaction When customers perceive a service as high quality, their satisfaction increases Conversely, if they view the service as low quality, it leads to dissatisfaction.

 Defination of banking service quality

Quality of service in banking refers to the ability of a bank to meet the needs and expectations of its target customers, as defined by the Institute of Banking Sciences It is essential to note that this quality is ultimately perceived by the customer, rather than being solely determined by the bank itself.

Service quality is defined as the gap between customer expectations and their actual experiences with products and services It is assessed by how well an organization meets customer requirements through its products, processes, and delivery systems, in alignment with established standards.

Vietnamese banks are focusing on consolidation and improving service quality, which serves as a vital strategy for establishing a strong foundation and sustainable growth This approach is essential for meeting the demands and challenges posed by regional and global integration.

Customer satisfaction

There are many different concepts of customer satisfaction:

“Customer satisfaction is the state / perception of the customer to the service provider after using the service” (Terrence Levesque and Gordon H.G McDougall, 1966).

Customer satisfaction is defined as the psychological response that arises from the disparity between customers' perceptions and their expectations (Oliver, 1999; Zineldin, 2000) Kotler (2000) aligns with this perspective, categorizing satisfaction into three distinct levels.

- Unsatisfied: when the level of customer perception is smaller than expected.

- Satisfied: when the level of customer perception is expected

- above satisfied: when the level of customer perception is greater than expected.

The disparity between service expectations and actual service experience shapes the perception of service quality and customer satisfaction Closing this gap enhances both values, leading to improved overall service delivery and greater customer contentment.

0, it satisfies customer satisfaction Service quality is the cause of customer satisfaction.

Satisfaction is a function of expectation, perception along with distance between perception and expectation (Oliver, 1980).

Customer satisfaction, as defined by Philip Kotler (2007), reflects an individual's emotional response based on comparing the outcomes of product and service consumption with their expectations This satisfaction is influenced by the gap between the actual results experienced and the anticipated outcomes.

Customer satisfaction, as defined by Jamal et al (2002), is the ultimate response to customer expectations It encompasses the awareness and attitudes of customers following their experience with a product or service.

The intangible nature and inherent quality of services highlight the crucial role of personnel in delivering customer satisfaction Service staff, particularly those at the counter, play a pivotal role in shaping service quality through their sense of responsibility, expertise, and interpersonal skills From security guards to consultants and agents, each individual's behavior and friendliness significantly influence the overall customer experience.

In the past, banks lacked modern technology to deliver quick and convenient services to customers However, with the rise of the market economy and advancements in information technology, banks have significantly enhanced their transaction service quality Automated software systems now streamline payment orders and account management, reducing risks and ensuring fast, efficient transactions As a result, the overall quality of banking services has markedly improved.

The quality of customer service is significantly influenced by the surrounding environment, including the design and layout of the counter area An inviting arrangement of tables and chairs enhances guest comfort, while an aesthetically pleasing bank space—featuring the right color schemes, elegant vases, and charming decorations—can greatly elevate the overall service experience at the counter.

Even when opening hours are over, services remain accessible to customers waiting for drinks, snacks, or reading materials, which can significantly influence their perception By understanding counter transactions, businesses can effectively remove barriers between customers and staff, enhancing overall service quality.

In addition to the micro factors mentioned above, the quality of customer service is influenced by macro factors such as: Party's and State's views,

The relationship between quality of service and customer satisfaction

Over the past decade, the relationship between service quality and customer satisfaction has sparked ongoing debate among researchers Numerous studies have explored this connection, with some scholars arguing that service quality and customer satisfaction are intrinsically linked, suggesting that these concepts can often be used interchangeably.

Numerous studies indicate that service quality and customer satisfaction are fundamentally different concepts According to Parasuraman et al (1993), the primary distinction lies in the "cause and effect" relationship between the two Zeithaml and Bitner (2000) further elaborate that customer satisfaction is influenced by various factors, including product quality, service quality, pricing, situational elements, and personal characteristics.

Service quality and customer satisfaction are interconnected concepts in service research, as established by Parasuraman et al (1988) Research indicates that the quality of service directly influences customer satisfaction (Cronin and Taylor, 1992; Spreng and Taylor, 1996) This relationship exists because service quality pertains to the delivery of the service, while satisfaction is assessed only after the service has been experienced.

Quality of service is a critical factor influencing customer satisfaction; when service providers deliver high-quality products that meet customer demands, it leads to increased customer happiness To enhance customer satisfaction, providers must prioritize improving service quality, as these two elements are closely interrelated The relationship between service quality and customer satisfaction is vital in many studies, indicating that improvements in quality must align with customer needs to ensure satisfaction Ultimately, when customers perceive the service as high quality, they are likely to be satisfied, whereas low-quality service results in dissatisfaction.

Some previous model of facrtor affecting customer satisfaction

Evaluating customer satisfaction in the service industry poses significant challenges due to its distinct characteristics In the context of banking services, numerous researchers have explored various methodologies to effectively measure service quality.

The master's thesis on Finance highlights two key aspects of service quality: technical quality and functional quality Technical quality pertains to the actual services provided, while functional quality focuses on the effectiveness and manner in which these services are delivered.

In this model, service quality is evaluated by comparing the anticipated value customers have before using the service with the actual value they experience during its use.

Research Issues: How technical quality and functional quality affect service delivery and how customers perceive those factors.

To measure service quality, Gronroos offers three criteria: technical quality, functional quality and image.

What is the technical description of the service provided and the quality that the customer receives from the service.

Quality describes how the service is provided or how the customer receives quality results.

Image is a very important factor, built on the technical quality and functional quality of the service, in addition to other factors such as communication, pricing policy, PR.

2.4.2 Fingure of antecedents and mediator model

This comprehensive model of service quality enhances the understanding of key concepts by examining the antecedents, intermediates, and outcomes that contribute to superior service delivery It highlights the critical relationship between service quality, customer satisfaction, and customer behavioral intentions, establishing these elements as essential prerequisites for achieving better service outcomes.

Buying behavior and acquisition intent significantly influence customer evaluations of service quality and overall satisfaction Understanding how these factors interact is crucial for businesses aiming to enhance customer experiences The foundation of customer satisfaction is closely tied to perceived service quality, as higher service standards typically lead to greater customer contentment Therefore, examining the relationship between these elements is essential for improving service delivery and fostering customer loyalty.

Model 2.3: Antecedents Model of Service Quality

Parasuraman et al (1985) define service quality as the gap between customer expectations and their actual perceptions during service use The Servqual model evaluates service quality by comparing these expectations with the perceived quality after service delivery Additionally, they introduced a five-gap model alongside five key components of service quality.

Distance 1: Distance between the perception of the company and the expectations of the customer with the expectations of the customer.

Distance 2: The gap between the company's perceptions of customer expectations and the quality of service.

Distance 4: The distance between the quality of service provided and the quality of service communicated to the customer.

Distance 5: Distance between customer service received and customer expectations of service.

Model 2.4: Parasuraman et al Model

The Customer Satisfaction Index (CSI) is a model that examines the relationship between key variables: brand image, expected quality, perceived quality, and perceived value, ultimately influencing customer satisfaction and loyalty When customers experience satisfaction, it can foster loyalty; conversely, dissatisfaction may result in complaints Thus, customer satisfaction serves as a pivotal factor that can lead to either positive or negative outcomes for businesses, depending on the perceived quality of their offerings.

The Master's thesis on Finance explores the relationship between customer loyalty and brand satisfaction, highlighting that dissatisfaction with products or services can lead to negative brand behaviors The study introduces the VCSI Model (Customer Satisfaction Index Vietnam), which adheres to established standards and proposes a framework consisting of seven key variables that influence customer satisfaction.

The causal variables of the model are: Brand image, Expected quality, Perceived quality, Perceived value, Customer satisfaction (central factor), Complaints, into the customer.

The VCSI model distinguishes itself from other CSI models by considering the unique socio-economic characteristics of each country, which influence the relationships between variables This model incorporates successful experiences from leading models while adapting to the specific features of the Vietnamese economy The VCSI theory model is structured to reflect these dynamics effectively.

Source: Le Van Huy – Nguyen Th Hị a My 2014

Proposed research framework of factor effecting customer satisfaction

Based on the study of previous research, the satisfaction of customer is determined by some basic factors: Visibility, Reliability, Reactivity, and Empathy.

Tangibility: Represented by the material conditions and means used by service providers to provide services to customers.

Reliability in service delivery means that providers consistently meet customer expectations by offering the promised quality of service This consistency is evident when customers receive the same high standard each time they engage with the service Additionally, the reliability of a business is demonstrated through the expertise and knowledge of its employees regarding the products and services offered.

A service provider must demonstrate a strong sense of responsibility towards customers by delivering prompt and attentive services It is essential to address any service shortcomings swiftly and efficiently, ensuring customer satisfaction and trust.

Empathy is crucial in customer service, as it reflects how well the service provider understands and addresses the customer's needs and desires, regardless of their size VPBank's commitment to high-quality customer service is grounded in the SERVQUAL model, which emphasizes four key components: reliability, responsiveness, empathy, and tangible elements This model serves as a framework for evaluating the effectiveness of customer care services in the banking sector.

Scale of quality customer service according to the SERVQUAL model

The questionnaire employs two types of scales: a nominal scale for gathering subject information and a Likert scale to evaluate the acceptance of criteria related to the quality of care at the Bank The Likert scale ranges from 1 to 5, where 1 indicates "Absolutely disagree" and 5 signifies "Absolutely agree," allowing for a detailed measurement of customer satisfaction regarding the customer service at VPBank's headquarters.

The SERVQUAL model evaluates service quality through 24 specific clauses that measure four key dimensions: tangibility, reliability, responsiveness, and empathy This framework has been validated in various studies globally, including research by Emin & Gregory (1992) and Pham & Bui (2010), which both utilized these 24 variables to assess customer satisfaction Notably, the SERVQUAL scale has been applied to evaluate customer service at the VPBank headquarters, demonstrating its effectiveness in measuring service perceptions and expectations.

Customer Satisfaction with customer care service

Luận văn thạc sĩ Tài chính to measure the four components of satisfaction of customers about customer care services, specifically.

Table 2.1: scale of quality customer service according to SERVQUAl model.

1 When VPBank promises to do something at a certain time, the bank do it correctly

2 When customer get trouble, VPBank expresses sincere concern in solving problems

3 VPBank has implemented the right service for the first time

4 VPBank provides the right service at the time the bank promises to perform?

5 VPBank secure personal information and transactions?

6 The behavior of VPBank’s staff increases the trust of customers with it

7 VPBank's staffs tell customer when the service will be available

8 VPBank’s staffs quickly implement service for customer

9 VPBank's staffs are never too busy to meet customer requirements

10 VPBank solve all issue of customer when they get trouble

11 VPBank’s staffs are always willing to serve customer

12 Customer feel safe when having transaction with vpbank.

13 VPBank has cutting-edge facilities T1

14 The facilities of VPBank look attractive and convenient

15 The staff of VPBank has a neat and polite uniform T3

16 VPBank's brochures related to the service are designed beautifully with plentiful information

17 VPBank’s staffs are polite, welcome to implement transaction with customers

18 VPBank staff is knowledgeable enough to answer customer questions

19 VPBank expresses concern to customers E1

20 VPBank has employees who help customer solve problem anytime

21 VPBank's staff understands your special needs E3

22 VPBank pay special attention to your most interests E4

23 VPBank has convenient transaction time E5

24 Customers are always consulted the most suitable product and service.

The information reflects client satisfaction on customer care services inherited from the Lassar & ctg (2000) research, with three measured variables:

Table 2.2 Scale of customer satisfaction according to Lassar & Ctg (2000)

1 Satisfaction with the quality of customer service Q1

2 The willingness to introduce services to others when asked

3 Commitment to continue using the service Q3

To ensure reliable results in exploratory factor analysis (EFA), it is crucial to have a sufficiently large sample size, with a minimum of five observation variables for each measurement variable Additionally, the sample size should ideally be less than 100 to maintain the integrity of the analysis.

22 observations, the minimum sample size is 22 x 5 = 110.

The sample was selected randomly from the list of regular customers to the counter at the VPBank headquarter and selected 180 clients.

Chapter 2 of the thesis deals with the theoretical bases related to service, quality of service, customer care of the bank The bank's services are more and more diversified, and banks are increasingly interested in satisfying their customers In addition, chapter 1 of the thesis also offers some models of customer satisfaction measurement in which the SERVQUAL Service Quality Model is a model that has long been used around the world and is very useful to evaluate service quality The content presented in Chapter 1 will be the theoretical foundation for measuring customer satisfaction in the quality of banking services That is the main content of chapter 3.

CUSTOMER SATISFACTION AT VPBANK

VPBank Overview

Thinh Vuong Commercial Joint Stock Bank (VPBank) was founded on August 12, 1993, and has since grown significantly over nearly 25 years The bank now operates 219 transaction offices and employs nearly 24,000 staff members By 2017, VPBank's chartered capital reached VND 15,706 billion, reflecting its robust growth and expansion in the banking sector.

VPBank is establishing itself as a credible and dynamic bank with strong financial stability and a commitment to community accountability Between 2012 and 2017, VPBank experienced significant growth, achieving remarkable scale and profitability, which positioned it among the top commercial joint stock banks in Vietnam.

In particular, 2017 is a historic landmark of the bank as nearly 1.5 billion shares are officially listed on the HOSE, attracting great attention from domestic and international investors .

The remarkable growth of VPBank is demonstrated by the expansion of its network of branches and transaction offices throughout the country and the diversification of sales and distribution channels.

VPBank has transformed its transaction points by enhancing their appearance, model, and service facilities, aligning with a strong "Customer Focus" strategy The continuous improvement and integration of products and services provide added benefits for customers, leading to increased satisfaction among existing clients and attracting new ones This approach has effectively expanded VPBank's customer base rapidly over time.

VPBank leads the market in leveraging advanced information technology across its products, services, and operations The bank has successfully established a robust corporate culture and implemented effective human resource management systems Furthermore, it has developed a specialized, centralized risk management system that aligns with international standards and the bank's business strategy By adopting best practices in corporate governance, VPBank consistently enhances its organizational structure, ensuring transparency and accountability in its governance policies.

VPBank has significantly strengthened its brand recognition, evidenced by receiving 20 prestigious national and international awards in 2017, highlighting its remarkable growth in brand value.

In 2017, VPBank was recognized by Brand Finance as one of the top four banks in Vietnam for brand value and ranked among the 22 most valuable brands in the country.

VPBank has been recognized by prestigious international organizations, earning accolades such as "Best Bank in Vietnam for Small & Medium Businesses" in 2017 from Asia Money and Asian Banking & Finance The bank also received three awards for "Best SME Bank," "Best for Small and Medium Businesses," and "Best Credit Products of the Year." Additionally, The Asian Banker honored VPBank with three awards, including "Best Digital Bank Solutions in Vietnam," "Best Bank for Credit Products in Vietnam," and "Best in Asia."

Vission and mission of VPBank

VPBank is a multi-functional urban commercial bank dedicated to prioritizing customer benefits, employee welfare, and shareholder interests while contributing to community development The bank offers a diverse range of competitive products and services that cater to customer needs VPBank values its employees by ensuring competitive salaries and fostering professional growth, while also upholding their political and cultural rights For shareholders, the bank focuses on enhancing stock value and maintaining high annual dividends Additionally, VPBank is committed to fulfilling its financial obligations to the state and actively engages in social work and charitable initiatives to support the community.

The vission is realized by a strategy of two main pliers:

 Organic growth is fierce, focusing on the individual, small and medium entreprise segment, while exploiting opportunities in the corporate and consumer segments.

 Building solid foundation systems in terms of organization, personnel, technology, operations.

Backstopping on the above strategy is the corporate culture of VPBank, base on six core values:

VPBank's successful transition has validated its strategic direction, leading to notable improvements in its image, service quality, and professionalism The bank has seen a steady rise in new customers and mobilized funds, further solidifying trust in the brand Additionally, VPBank is emerging as a sought-after employer in the banking and finance sector These essential elements are pivotal as VPBank aims to rank among the top five commercial joint-stock banks in Vietnam and become one of the leading retail banks by 2017.

VPBank is committed to fulfilling its mission by prioritizing customer benefits, valuing the interests of employees and shareholders, fostering a strong corporate culture, and actively contributing to community development, all in line with its strategic vision.

VPBank's new brand, guided by the motto "Action for Dreams," emphasizes professionalism, dedication, uniqueness, and simplicity With a long-term vision, VPBank is committed to enhancing its image as a customer-focused bank that prioritizes friendly service and rapid response times.

VP Bank's new logo, Hoa Thinh Vuong, features a design of fine lines and smooth curves, embodying the bank's commitment to flexibility, friendliness, and reliability for its customers The emblem resembles cherished hands, symbolizing aspiration and upward development, while also representing solid support for growth and prosperity Additionally, it emphasizes the importance of unity in building a prosperous community and nation in Vietnam.

The bright red of the petals expresses enthusiasm, enthusiasm, creativity, prosperity and luck, as well as the sense of responsibility for society and the community in each VPBank's activities.

VPBank boasts an extensive distribution channel and branch network across the country, enabling it to effectively reach a wide range of potential customers This robust network positions VPBank as one of the three largest retail banks in terms of retail sales, enhancing its brand identity and recognition among customers nationwide.

Luận văn thạc sĩ Tài chính country known VPBank With 216 transaction points in 38 provinces across the country, customers will be more convenient in dealing and working with banks.

Overview about VPBank Langha

VPBank Lang Ha branch commenced its credit operations on April 19, 2004, as part of VPBank's strategy to expand its branch network in Hanoi and northern provinces The branch focuses on mobilizing capital through various means, including term deposits, demand deposits, and borrowing from other credit institutions Additionally, it offers short, medium, and long-term loans to individuals and organizations, along with payment services, foreign currency trading, gold and silver transactions, international payments, and other banking services, in compliance with regulations set by the State Bank.

VP bank operates in the field of currency trading and banking services on the basis of carrying out the following operations:

Mobilizing short-term, medium-term and long-term capital of organizations and individuals.

To receive investment and development investment capital of domestic organizations.

Borrowing from the State Bank of Vietnam and other credit institutions. Providing short-term, medium-term and long-term loans to organizations and individuals.

Discounting bills, bonds and valuable papers.

Contributing capital, joint ventures and buying shares according to the current law.

Providing payment services between customers.

Trading foreign currencies, gold and silver.

Mobilize capital from foreign countries and carry out banking related services overseas when permitted by the State Bank.

International settlement and implementation of other services related to

Providing domestic and overseas remittance services in the form of special remittance western Union.

Deposit products encompass both term deposits and demand deposit options, serving as essential tools for customers to enhance their financial security and ensure continuous profit Term deposits offer flexible durations ranging from 1 to 36 months, with interest payments available either monthly or at maturity.

Vp supper is a premium product that includes a package of services with interest rates up to 6% / year: account, debit card, internet banking and SMS Banking.

VP Business is a package of VP business accounts, Internet Banking, SMS Banking, and VPBank's monthly payment service with interest rate up to 6% per annum.

VPBank's online savings service is available for all individual customers with payment deposits who utilize the bank's internet banking platform This innovative service allows customers to effortlessly transfer money, check savings account information, and manage their savings without visiting a bank branch Customers can conveniently prepare for early withdrawals and access time savings accounts online, enhancing their banking experience.

VP couple is only for customers who use VND as a currency to send and borrow at VpBank The product is suitable for business individuals, small and medium enterprises.

The Smart Account Deposit is a savings account that is linked directly to your payment deposit account and smart utilities will meet your expectations.

Table 3.1 Mobilization situation of VPBank Lang Ha branch

The capital mobilization sources have shown a consistent upward trend over the years, particularly between 2016 and 2017, rising from VND 1,929,746 million in 2014 to VND 2,412,824 million in 2017 Notably, capital mobilized from the population remains substantial, while deposits from economic organizations play a crucial role as a significant source for the bank.

Lang Ha is a hub for numerous companies, particularly showrooms, benefiting from robust capital mobilization VPBank Lang Ha is dedicated to enhancing its human resources while diversifying and significantly developing its products and services.

Table 3.2 Lending situation of VPBank Lang Ha Branch

VPBank Lang Ha serves a stable base of individual customers and local business households, particularly in agriculture and production Leveraging regional advantages, the branch has excelled in automobile loan offerings The lending performance has consistently improved, with significant growth observed between 2016 and 2017.

2017 is a volatile year for VPBank in general and the Bank VPBank Langha in particular.

Table 3.3 Business result of VPBank Lang Ha

By the end of 2017, VPBank Lang Ha reported a profit of VND 51,435 million, surpassing its annual targets and earning recognition as one of the top branches in the Northern region In 2016, alongside its profit goals, the branch focused on enhancing the quality of its products and services to ensure accessible banking solutions for businesses.

Luận văn thạc sĩ Tài chính and individuals, together contribute to improving the quality of life of Lang Ha people in the integration period.

VPBank deploys nine business segments, including four main segments:

Main products: consumer loans, credit cards, two-wheeler loans.

VPBank is committed to enhancing its offerings in mobilized products, including home loans, automobile loans, consumer loans, business loans, mortgages, and credit cards The bank is also focused on advancing its Affluent Banking services and credit card options, alongside expanding its digital channels to better serve customers.

The department was established in July 2015 to target the manufacturing sector, small traders VPBank launches commencement to focus on serving local customers

Target micro and small businesses through the SME network and provide a full suite of banking products.

In addition, VPBank also deploys five more segments to serve the diverse clientele and make the bank more developed by serving all customer needs.

In addition, VPBank has diversified into other business segments

Digital banking emerged in 2015 as a solution to bridge the digital divide by digitizing traditional banking processes and services It offers banking products through e-banking systems accessible via the web and mobile applications VPBank collaborates with Fintech companies to ensure it remains at the forefront of the latest technological advancements in the industry.

Starting in March 2017 and planned to launch in the second half of 2018, with the goal of becoming a bank of international standards.

Serving VPBank's corporate customers with annual turnover ranging from VND 400 billion to VND 1600 billion Include private and local business clients as well as medium-sized state-owned enterprises.

Large corporate customers and investors

Targeting businesses with annual revenue of over 1600 billion Focus on

Performing foreign exchange, currency and bond transactions Dealing with major banking services for domestic and international financial institutions.

Comment on the performance of each business sector

VPBank Financial Services Vietnam (VP Credit) is the leading player in the consumer finance market, serving over 7 million customers and partnering with more than 10,000 affiliates across 63 provinces FE Credit dominates the sector with over 50% market share, disbursing 3.7 million new loans and issuing credit cards to over 3 million new customers last year This growth led to a rise in active customers to 3.5 million and an increase in loan balances to nearly 45 trillion VND FE Credit's revenue surged from 8.552 trillion VND in 2016 to 12.957 trillion VND in 2017, while after-tax profit increased from 2 trillion VND to 3.358 trillion VND, marking impressive growth rates of 51.5% and 68%, respectively Notably, FE Credit achieved this success alongside enhanced operational and risk management efficiency, evidenced by improved provisioning ratios, a reduced bad debt ratio, and a decrease in the cost-to-income ratio from 6% in 2016 to 5% in 2017, and from 35.8% in 2016 to 29.2% in 2017.

VPBank's retail banking sector has emerged as a key growth driver, with a remarkable revenue increase of over 66% in 2017 compared to the previous year The bank anticipates a pre-tax profit surge of more than 100% year-on-year Additionally, VPBank's retail customer base expanded significantly, surpassing 2.7 million, which contributed to an impressive loan growth of 83% In the credit card market, VPBank climbed to the third position in card issuance and second in spending, up from fifth place in 2016 By the end of 2017, the bank issued 198,000 credit cards, marking a substantial 132% increase.

In 2016, card spending reached unprecedented levels, surpassing 2,000 billion each month VPBank's strengths in personal loans (UPL) were evident, with a remarkable 54% increase in sales and a 114% rise in overall performance Additionally, deposit mobilization saw about a 15% increase since the beginning of the period, reflecting successful efforts in product collection and mobilization The initiative to enhance payrolls also produced encouraging outcomes.

Luận văn thạc sĩ Tài chính number of cross-sell contracts doubled, bringing the number Product held on a client from 1.48 to 1.63

VPBank is poised to capitalize on small businesses and microenterprises, with consumer credit and retail banking projected to be its primary revenue sources over the next five years The bank distinguishes itself in the consumer credit market through its well-established brand, FE Credit, and is strategically focusing on small and medium business customers By 2015 and 2016, VPBank aims to solidify its position in the small business credit sector, reinforcing its commitment to innovative financial solutions tailored for this market.

By the end of 2017, VPBank's Commcredit Division owns a specialized network of 236 transaction offices covering 51 provinces.

Total assets increased by 78% from VND1,915 billion to VND3,300 billion, total revenue increased 153% from VND318 billion to VND804 billion, total cost increased by 56% from VND85 billion to VND133 billion.

The company experienced significant growth in various non-financial metrics, with the total network expanding from 129 to 236 units Additionally, the workforce increased substantially from 1,947 to 3,088 employees, while total disbursements rose impressively from 54,135 to 67,800.

In 2017, VPBank evaluated the initial phase of its SME segment development strategy, marking the beginning of a transformative roadmap focused on comprehensive digitization, particularly emphasizing the micro-enterprise segment (Micro SME).

Customer satisfaction assessment on VPBank’s service

A total of 175 questionnaires were distributed to customers at the VP Bank headquarters After collecting the responses, 10 unsatisfactory questionnaires were discarded, resulting in 165 satisfactory questionnaires available for analysis.

Luận văn thạc sĩ Tài chính gender male female

Among the 165 respondents, 55.2% were female (91 individuals) and 44.8% were male (74 individuals), reflecting the cultural norm in Vietnam where women typically manage household spending The age distribution of respondents included those under 31, between 31 to 40, from 41 to 50, and above 50.

The majority of participants in the survey were aged 31-40, comprising 41% of respondents with 68 individuals This was followed by those under 31 and those aged 41-50, each accounting for 24% with 40 respondents Only 11% of the participants were over 50 years old The occupations represented included business professionals, officers, traders, teachers, and others.

In a survey of 165 participants, 37% identified as traders, while 36% were officers The remaining respondents included businessmen, teachers, and individuals in other occupations, totaling 44 people, which accounted for 5%, 8%, and 11% respectively.

Luận văn thạc sĩ Tài chính income under 3 mil from 3-5 mil from 5-8 mil from 8- 10 mil above 10 mil

The income levels of customers transacting with VPBank headquarters are generally stable and relatively high Notably, 42% of customers, or 70 individuals, fall within the highest income group, earning between 5 to 8 million dong The second-largest group comprises 43 customers, representing 26%, who earn between 8 to 10 million dong Meanwhile, smaller income groups account for 4% earning under 3 million, 7% earning between 3 to 5 million, and 21% earning over 10 million dong.

The analysis reveals that customers are dissatisfied with banks' responsiveness in the "empathy and reliability" component, highlighting an urgent need for improvement In contrast, VPBank is recognized for its effective initial service implementation, fostering a sense of security among customers during transactions Additionally, the "responsibility" component receives high praise, with an average rating of 4.05 or above, indicating strong customer appreciation.

"Bank facilities look very attractive" is lower or customers still disagree with this idea.

Empathy and reliability are the least influential factors on customer satisfaction, as indicated by their low agreement levels Specifically, the variable R3, which states "VPBank has implemented the right service for the first time," received a mean score of 2.25, reflecting significant disagreement among respondents, evidenced by a standard deviation of 1.155 Similarly, empathy is represented by the variable E2, which shows comparable levels of contention.

Luận văn thạc sĩ Tài chính employees who help customer solve problem anytime" has the least effect in the variable group of empathy with a mean of 2.36.

The research highlights that the key drivers of customer satisfaction are responsibility and tangibility, while the aspects least valued by customers are those related to VPBank Lang.

Ha need to prioritized to improve first in the current conditions.

To enhance the quality of customer care services in banking, it is essential to prioritize factors that matter to customers, including responsiveness, accountability, and tangible service aspects Additionally, banks must focus on other crucial elements such as empathy and reliability to further elevate their customer care standards.

The average satisfaction level and willingness of customers at VPBank Langha to recommend services to others is notably high, ranging from 3.24 to 3.66 With a standard deviation between 1.085 and 1.338, these figures indicate that customers have a strong commitment to continue using VPBank Langha's services, reflecting their appreciation for the quality of customer care provided.

Table 3.7: Frequency of dependent variable Q1

According to recent statistics, 64 customers (38.8%) expressed satisfaction with the bank's customer care services, while 36 customers (25.5%) were fully satisfied Additionally, 57 individuals (34.5%) rated their satisfaction as average Notably, no customers reported dissatisfaction or total disagreement with the quality of customer service, which accounted for 26.7% This data indicates that the bank's customer service quality is generally perceived as good, meeting the expectations of the majority of customers.

The evaluation results indicate a strong willingness among customers to recommend services to others, with an average score of 3.66 and a standard deviation of 1.085, reflecting above-average enthusiasm Specifically, 82 customers (49.7%) expressed their willingness to introduce the services, while 49 customers (29.7%) fully agreed with the readiness to recommend these services.

A total of 68 customers, representing 41.2%, reported a satisfactory level of service, indicating that the quality of customer care has effectively met the needs of most clients This positive experience is likely to enhance the reputation of the bank, as satisfied customers are inclined to share their experiences and recommend the services to others However, there are still 15 customers who have not expressed the same level of satisfaction.

A survey of 165 customers revealed that 9% are hesitant to recommend services to others, indicating a need for VPBank Langha to enhance its service offerings To boost customer satisfaction and service quality, the bank must implement targeted solutions.

A strong commitment to continue using banking services is evident, with an average agreement score of 3.33 and a standard deviation of 1.304 among 165 surveyed customers Specifically, 26.7% of respondents completely agree with their loyalty to the bank, while 14.5% express agreement with the bank's customer care services Additionally, 36.4% of customers provide neutral feedback regarding their ongoing commitment to the bank's services.

Current status of customer care at VPBank

3.4.1 General policy on customer care at VPBank

VPBank Lang Ha stands out as a competitive branch within its banking system by implementing unique strategies focused on cultivating a distinctive corporate culture The branch prioritizes employee welfare through stable income, favorable labor policies, and attention to both material and spiritual well-being It actively encourages and rewards outstanding individual and team achievements while emphasizing continuous training and strict adherence to social responsibility, including tax compliance and charitable contributions While retail banking is a core strategy shared by many banks, VPBank Lang Ha differentiates itself by enhancing customer care quality, which is essential for its survival and growth in a competitive market.

The branch's business strategy serves as a foundation for effective customer care policies, heavily influenced by leadership and consistent communication from leaders to employees The commitment of leaders to customer care is essential for the successful development and implementation of these policies Recognizing this, VPBank Lang Ha has fostered a strong branch culture, collaboratively establishing customer care policies with all employees A leadership unit has been created to define performance metrics, goals, and benchmarks for customer satisfaction, while comprehensive guiding documents are developed to ensure clarity and communication among all branch members.

The branch management has expressed a strong commitment to all members, ensuring a unified approach to enhancing customer care through strategic development and effective implementation This dedication not only supports the overall strategy of the branch but also focuses on meticulously planning the customer care policy Additionally, it fosters a sense of responsibility and dedication among staff towards executing these policies effectively.

Provide information for customer from savings interest rates to lending rates day by day

During Tet holidays and customer birthdays, our branches make it a priority to personally congratulate clients and deliver thoughtful gifts, recognizing their valuable contributions to our business.

Preferential interest rate ( for customers who are attached to the branch for a long time, interest will be entitled to the most preferential interest rate)

The bank's customer care operations are guided by the slogan "Act for Dream," emphasizing the importance of customer satisfaction at its branches The happiness of all employees is directly linked to the positive experiences of customers using the branch's services.

Customer care focuses on building and nurturing a network of clients by effectively meeting their needs, aiming to align the bank's capabilities with market conditions A strong customer policy not only helps retain and attract clients but also provides a competitive edge by fostering customer loyalty.

In customer care activities, the attitude of employees impresses customers with the quality of service as well as the brand impression

To enhance customer care quality, VPBank implements policies that foster a positive working attitude and creativity among employees By establishing transparent criteria for customer care activities, the bank encourages a proactive and innovative approach, leading to increased customer satisfaction and loyalty Specific initiatives include employee treatment policies, encouragement of new ideas, and fostering a dynamic and enthusiastic work environment A professional service style significantly contributes to the overall improvement of customer care quality.

At this stage, VPBank focuses on customer service by delivering essential information to help manage customer expectations and ensure commitment to meeting their needs To achieve this, VPBank utilizes various advertising methods, including leaflets, posters, and banners Additionally, the bank sponsors humanitarian programs, music events, and educational initiatives to enhance brand recognition and inform customers about its services, products, pricing, and promotions.

This is the stage where employees interact with customers the most

At transaction offices and branches, customers can engage directly with transaction staff for immediate assistance While waiting, they can take advantage of additional customer service offerings, including newspapers, brochures, magazines, manuals, and information on new services, promotions, and customer care programs.

Customer Contact Procedure: During the transaction, the usual tasks a customer care worker must perform are:

Get information about the needs of customers, advise customers bankingservices so that customers can choose to suit the needs.

Introduce to customers promotional programs, customer care programs, gratitude to customers.

Transaction agents gather information from customers, and if issues arise that cannot be resolved, it is the client's responsibility to contact the relevant department directly Our primary objective is to effectively meet the needs of our customers.

VPBank actively engages with customers to understand their service needs, encouraging them to visit our branches By showcasing the benefits of our services, we aim to stimulate customer interest and demand for VPBank's offerings.

Customer care services are primarily carried out in the post-trading phase The mission of the service is to maintain old customers, increase customer loyalty and attract potential customers.

In order to do this, VPBank organized a customer service system in each market area with specific components such as:

Customer management to manage the needs of customers by building customer classification criteria, building customer database management software.

Develop customer care policies (policy on VIP customers, loyal customers).

Organize customer support system (troubleshoot technical services such as swallowing ATM cards).

Quality assurance of ATM network, quality of service.

Priority of service: products and services to meet the needs of customer business are advised and introduced by the financial specialist.

Added benefits: provided information, gifts on a number of special occasions, discount when having transactions, using service.

Provide customized products and services by rating.

Prioritized use of Internet banking services.

Prioritized to provide products, services designed according to the needs of customers.

In particular, throughout the year, the branch will offer the gift giving, promotion on the occasion of the holidays of the year In 2017, the branch has customer care programs:

Table 3.24: gift giving activities of Vpbank

Content of gift giving to customer The quantity of customer

2 Gift on occasion of branch birthday 250

3 Gifts for the occasion of the liberation of the

South and International Labor 30/4 and 1/5

Branch had constructed a department specialized in customer care service including:

The business unit is composed of three consultants who are responsible for:

 Implement, monitor and coordinate the lobby area.

 Consulting, solving customer information and selling goods on the spot.

 Performing transaction procedures, keeping records of customer information.

 Taking care of customers and developing relationships with customers. The customer service department has 6 transactors and 1 fund staff

 Executives and fund staff are managed by the head of customer service department.

 Carry out transactions to provide the best products and services for customers (withdrawal, deposit, savings, transfer, accounting related debt collection, confirmation of balance, foreign currency exchange, ).

 Make vouchers, print statements, manage accounts, and make related reports.

 Exploit the needs of customers in the transaction process to market, promote additional products, care and customer development.

Customer care is a collective responsibility of all staff members in the branch, emphasizing the importance of customer insight, respect, friendliness, and openness.

In the industry, 75% of employees interact directly with customers, demonstrating enthusiasm and cooperation in their roles Adhering to the Transactor guidelines and following leadership directives is essential for effective customer care.

Departments that directly engage with customers often experience healthy competition in executing customer care policies and regulations The well-functioning ATM system, which is extensively installed in the area, facilitates convenient, fast, and secure transactions, fostering trust and satisfaction among customers.

In the service sector, where products are intangible, the human element plays a pivotal role Effective customer care hinges on three key components: human interaction, streamlined processes, and advanced technology, all of which are essential to the success of the operation.

In order to obtain the best quality customer care, the branch has taken measures to improve the quality of its human resources:

 Determining which human resources will be involved in customer care.

 Introduce the required standards for this staff.

 Carry out the recruitment and training, depending on the specific characteristics of each specific profession of each employee.

Successful customer care depends not only on the team involved, but also on the entire branch.

Strength and weakness in customer care policies

VPBank has developed a robust branch network and customer service presence across the country, ensuring accessibility for customers everywhere The proximity of bank services to customers enhances convenience, while the synchronized branding of branches and transaction offices creates a strong identity that resonates with clients.

VPBank has developed a comprehensive customer classification and management system, complemented by supportive economic policies tailored for VIP and loyal customers The bank prioritizes staff training through specialized courses to enhance customer service Annual customer appreciation events are organized to celebrate holidays and significant milestones, including birthdays and weddings of VIP clients Additionally, a dedicated customer service center is established to ensure consistent care and address inquiries across the entire banking system.

VPBank Lang Ha has not managed the needs and expectations of customers on a regular basis and science, especially the application of information technology to customer management.

Recent economic policies have primarily focused on large enterprises, neglecting customer appeal in comparison to competitors Customer care strategies prioritize revenue over fostering loyalty, resulting in a lack of emphasis on service diversification and retention of loyal customers.

The marketing team is understaffed and lacks quality, while technical support personnel exhibit insufficient professional knowledge Additionally, customer care efforts fall short of expectations, failing to inspire employee dedication Furthermore, the existing compensation structure does not effectively incentivize staff to enhance their performance in customer care activities.

The bank has not fully addressed the competition posed by alternative financial products, as the growth of capital markets, the insurance sector, and new capital mobilization channels significantly influence the demand for banking services among businesses and individuals Additionally, the limited convenience of ATMs hampers customer service and the bank's competitiveness in card issuance services.

During peak hours or on days surrounding ceremonies, banks often experience an overwhelming number of customers, leading to transactions that exceed their service capacity and resulting in long wait times for patrons.

Bank staff at the current transaction counters are not good at persuasion skills as well as create a sense of communication with customers.

The transaction counters at the VPBANK branch in Lang Ha offer high-quality facilities; however, their appeal lacks distinction The branch's decor has seen minimal updates, resulting in a monotonous experience for customers who frequent the location for regular transactions.

The third section of the chapter details research findings on the factors influencing customer satisfaction, utilizing correlation analysis and regression testing models The study identifies four key variables—responsibility, reliability, empathy, and tangibility—that demonstrate statistical significance and a positive correlation with customer satisfaction These insights form the foundation for proposing strategies to enhance customer satisfaction.

Luận văn thạc sĩ Tài chính customer satisfaction with the quality of customer care services to suit the conditions at VpBank Lang Ha Branch, presented in Chapter 4.

SOLUTION TO ENHANCE CUSTOMER SATISFACTION

Development orientation of VPBank Lang Ha

VPBank aims to become a leading commercial joint stock bank and retailer in Vietnam by prioritizing high-quality customer service, recruiting top talent, and upgrading its information technology infrastructure The bank views service quality as its competitive advantage and focuses on developing innovative financial products and services tailored to meet customer needs, including card services, savings, loans, domestic and international money transfers, currency exchange, and gold custody.

VPBank's development strategy emphasizes leveraging opportunities in wholesale and consumer credit, focusing on key product areas such as credit, mobilization, cash flow management, and trade finance The bank is a market leader in integrating advanced information technology into its products, services, and operational systems Additionally, VPBank has cultivated a robust corporate culture and successfully implemented core human resource management systems.

Solution to enhance quality of customer care of VPBank Lang Ha

To develop effective customer care policies that bring valuable benefits to customers, simultaneously, overcome weaknesses in customer care service such

The master's thesis on finance highlights the lack of customer care policies at VPBank, indicating an underutilization of its multi-service advantages and the absence of a long-term customer loyalty program This study explores and analyzes customer satisfaction at VPBank, proposing several solutions aimed at enhancing the quality of customer care services at VPBank Lang Ha.

4.2.1 Solution to enhance competence of employee

Research indicates that customers place significant importance on sympathetic factors (β = 0.373) To address this, banks must implement strategies that cater to customer needs, with employees playing a crucial role in customer interactions To boost customer satisfaction, banks should invest in training their staff to develop exceptional customer care skills.

In trading, it is essential for employees to provide dedicated service by regularly engaging with customers and demonstrating an attentive attitude Remembering customers' names fosters a personal connection, showing that employees value them as individuals Additionally, employees should be mindful of customer emotions and proactively address any concerns or difficulties If customers express confusion or worry, it is crucial to provide clear explanations and recommend suitable services This approach ensures that customers feel secure and at ease during their banking experience.

Implementing the motto "customers are always right", always apologizing to customers with goodwill and open attitude in all situations.

To enhance customer service, the bank should implement a monthly customer survey or comment box to evaluate staff attitudes This initiative will not only raise employee awareness of their responsibilities in serving customers but also provide valuable feedback for management By analyzing customer opinions, leaders can recognize and reward high-performing employees while addressing areas for improvement among those who may need to enhance their service skills.

Raising the sense of business is only a necessary condition, sufficient conditions to have a quality human resource is to improve professional qualifications of employees.

Recognizing the importance of this work, Branch leaders are also interested in directing training recruitment, retraining, further study to improve professional

VPBANK Lang Ha aims to enhance employee capabilities by focusing on professional skill development and customer care training This initiative is designed to foster enthusiasm among staff, enabling them to unlock their full potential and effectively tackle challenges, ultimately leading to improved work performance.

Conducting a comprehensive survey of current employees based on criteria such as professional qualifications, age, and health status is essential for developing targeted training programs This approach ensures that resources are utilized effectively, maximizing efficiency and minimizing waste in employee development initiatives.

Managerial officials in banking must possess up-to-date professional knowledge in areas such as banking, economics, law, and business administration This continuous learning ensures they can effectively apply relevant techniques to branch operations and prevent stagnation in outdated practices.

Transaction staff should receive training in exploration skills, professional development, communication, and situation handling It's essential for all salespeople to be informed about their branch's marketing activities and possess marketing knowledge, enabling them to effectively promote the branch's initiatives and build customer trust Improving customer service attitudes is crucial, emphasizing thoughtful, polite, and civilized interactions Moving away from authoritative behaviors is necessary to foster an environment where customers feel comfortable expressing their needs and desires, ensuring enthusiastic guidance and a positive service attitude to prevent conflicts and encourage collaboration.

To enhance operational quality, all administrative staff must recognize their vital role in customer care It is essential that every employee, not just those in direct customer interaction, contributes to a positive customer experience Consequently, all branch employees should focus on improving their professionalism, communication style, and overall service quality.

In retraining and advanced training courses, branches will usually send their correspondents from VPBank In addition, branches can organize by sending them to study, or hire instructors.

VPBank can enhance customer engagement through simple yet impactful strategies, such as remembering customer names and offering genuine compliments These small gestures can significantly improve the customer experience Employees at VPBank Lang Ha are encouraged to consistently implement these effective practices to foster stronger relationships with clients.

VPBank can enhance customer satisfaction by implementing thoughtful gestures such as sending branded gifts, greetings, or flowers on special occasions like birthdays and Tet holidays, and organizing meetings to address customer concerns Currently, the bank lacks a structured approach to customer care and complaint resolution, leading to dissatisfaction among clients who feel their issues are not addressed promptly To build trust and improve service quality, VPBank should establish a clear customer care department, streamline complaint resolution processes, and set up a dedicated hotline for customer inquiries and feedback Additionally, enhancing communication channels and investing in a user-friendly website will facilitate better information collection and processing, ultimately elevating the overall customer experience.

4.2.2 Solution to enhance employee motivation

In a market economy, businesses strive for survival and growth by not only investing in modern infrastructure but also maximizing human resources People are the key to business success, and every leader aspires to build a loyal and dedicated team.

In today's workplace, it's increasingly common for employees to frequently take time off and lack long-term commitment to their companies, often seeking new job opportunities This shift impacts organizational structures and business development strategies A key factor contributing to this trend is the failure of companies to adequately meet employee motivation and engagement needs.

Finance and banking play a crucial role in the economy, requiring employees to be passionate, creative, and adaptable to change Over the years, VPBank Lang Ha has consistently worked to uphold its strong position, with the success of the branch heavily reliant on the dedication and performance of its staff.

Bank leaders play a crucial role in fostering a culture of entrepreneurial passion among employees, ensuring they feel a sense of belonging By motivating staff, leaders help them understand that their work at the bank is not just a job, but a personal investment in their own success and the bank's mission.

Section A: Demographic information of customer

1 What is your gender? a Male b Female

2 What is your age ? a Under 31 years old b From 31 to 40 years old c From 41- 50 years old d Above 50 years old

3 What is your current occupation ? a Businessman b Officer c Trader d Teacher e Other

4 What is your monthly income ? a Under 3 million dong b From 3 to 5 million dong c From 5 to 8 million dong d From 8 to 10 million dong e Above 10 mil

Section B: Factor influencing customer satisfaction toward customer care service of VP Bank Lang ha

Please indicate your agreement on a scale from 1 to 5 with the following scale:

13 VPBank has cutting-edge facilities

15 The staff of VPBank has a neat and polite uniform

19 VPBank expresses concern to customers

21 VPBank's staff understands your special needs

22 VPBank pay special attention to your most interests

23 VPBank has convenient transaction time

27 Commitment to continue using the serviceLuận văn thạc sĩ Tài chính

Service quality model by Lassar & ctg(2000)

Customer satisfaction is the most crucial factor in determining the quality of customer service, as it involves meeting and exceeding customer expectations and needs High-quality service not only fulfills these requirements but also enhances the overall customer experience, fostering loyalty and trust in the bank Additionally, studies on consumer behavior indicate that satisfied customers are likely to share their positive experiences through word-of-mouth, influencing others who are seeking banking services These insights serve as key indicators for developing effective strategies to enhance bank counter services.

Customer care is a vital aspect of marketing that aims to meet customer needs and achieve business objectives, such as increasing sales and profits in a competitive environment It plays a crucial role in maintaining existing customers and fostering loyalty, as businesses focus on keeping current clients engaged with their products and services Additionally, attracting potential customers requires significant investment in marketing activities like advertising and promotions.

Commit to continue using service ( loyalty)

Satisfaction level with the quality of customer service

Maintaining current customers is more cost-effective than acquiring new ones, as it costs five times more to attract a new customer than to retain an existing one Effective customer care enhances service quality and fosters loyalty, creating a strong bond that keeps customers engaged This loyal customer base is a valuable asset, helping businesses alleviate competitive pressures With a dedicated clientele, companies can ensure stable revenue streams and potentially boost profits by introducing new products to satisfied customers.

Effective customer care serves as a powerful advertising tool that helps attract potential customers While customer loyalty is crucial for business success, it is equally important to continually draw in new clients This can be achieved indirectly through satisfied existing customers, offering a cost-free yet impactful form of promotion Additionally, businesses can enhance their outreach by implementing promotional strategies, providing free consultations, and organizing product introduction conferences to boost awareness, understanding, and trust among potential customers.

Effective customer care significantly lowers business costs by reducing the need for extensive advertising and customer acquisition efforts Satisfied customers naturally promote the business through word-of-mouth, eliminating the need for costly marketing campaigns Additionally, strong customer service minimizes expenses related to product introductions and mitigates the financial impact of addressing customer dissatisfaction.

Customer care has emerged as a crucial competitive advantage in today’s business landscape As the economy evolves, market competition intensifies, leading to an influx of products and services that often share similar features, quality, and pricing, which can overwhelm consumers Relying solely on pricing strategies to dominate the market is no longer effective; instead, exceptional customer service is essential for differentiation and customer loyalty.

In the realm of finance, a master's thesis on profitability highlights the challenges posed by unhealthy price competition, which can jeopardize a business's stability In such scenarios, effective customer care emerges as a crucial strategy; businesses that excel in nurturing customer relationships are more likely to succeed and thrive.

There are many different concepts of customer satisfaction:

“Customer satisfaction is the state / perception of the customer to the service provider after using the service” (Terrence Levesque and Gordon H.G McDougall, 1966).

Customer satisfaction is defined as the psychological response resulting from the disparity between customers' perceptions and their expectations (Oliver, 1999; Zineldin, 2000) Kotler (2000) aligns with this perspective, categorizing customer satisfaction into three distinct levels.

- Unsatisfied: when the level of customer perception is smaller than expected.

- Satisfied: when the level of customer perception is expected

- above satisfied: when the level of customer perception is greater than expected.

The perception of service quality and satisfaction arises from the gap between service expectations and actual service experiences Narrowing this gap enhances customer satisfaction and differentiates the overall service value.

0, it satisfies customer satisfaction Service quality is the cause of customer satisfaction.

Satisfaction is a function of expectation, perception along with distance between perception and expectation (Oliver, 1980).

Customer satisfaction, as defined by Philip Kotler (2007), refers to the emotional state of a person resulting from comparing the outcomes of product and service consumption with their expectations It is influenced by the gap between the actual results experienced and the anticipated outcomes.

Customer satisfaction is defined as the fulfillment of customer expectations (Jamal et al., 2002) It encompasses the awareness and attitudes of customers following their experience with a product or service.

The intangible nature of services, often characterized by their integral and inferior quality, highlights the crucial role of personnel in delivering customer experiences Frontline staff, particularly those at service counters, play a vital role in shaping service quality through their sense of responsibility, competency, and friendly behavior Additionally, the influence of security guards, consultants, and agents further underscores the importance of human interaction in enhancing overall service delivery.

In the past, most banks lacked modern technology to deliver products and services efficiently; however, the rise of the market economy and advancements in information technology have revolutionized the banking sector Today, banks utilize automated software systems to streamline payment orders and account management, significantly reducing risks and ensuring rapid, precise transactions As a result, the overall quality of transaction services has greatly improved.

The quality of customer service is significantly influenced by the environment, including the design and layout of the counter area A well-arranged space with convenient seating, attractive colors, and appealing decorations, such as beautiful vases, can enhance the overall customer experience These elements collectively contribute to a more inviting atmosphere, ultimately improving the quality of service at the counter.

Even during closed hours, services remain accessible for customers waiting for drinks, snacks, or reading materials, highlighting the importance of these seemingly minor factors in shaping customer perception By gaining insights into counter transactions, businesses can effectively remove barriers between customers and employees, enhancing the overall experience.

In addition to the micro factors mentioned above, the quality of customer service is influenced by macro factors such as: Party's and State's views,

2.3 The relationship between quality of service and customer satisfaction

Gronroos Model

In this model, service quality is evaluated by comparing the anticipated value customers expect prior to using the service with the actual value they receive during their experience.

Research Issues: How technical quality and functional quality affect service delivery and how customers perceive those factors.

To measure service quality, Gronroos offers three criteria: technical quality, functional quality and image.

What is the technical description of the service provided and the quality that the customer receives from the service.

Quality describes how the service is provided or how the customer receives quality results.

Image is a very important factor, built on the technical quality and functional quality of the service, in addition to other factors such as communication, pricing policy, PR.

2.4.2 Fingure of antecedents and mediator model

This comprehensive model of service quality enhances our understanding by examining the essential factors that influence service quality, including its antecedents, intermediates, and outcomes It highlights the critical relationship between service quality, customer satisfaction, and customer behavioral intentions, emphasizing that these elements are prerequisites for achieving superior service quality.

Buying behavior and acquisition intent significantly influence customer evaluations of service quality and overall satisfaction Understanding these factors is essential, as they shape the customer's perception of service effectiveness The premise of customer satisfaction is closely tied to the quality of service provided, highlighting that high service quality often leads to increased customer satisfaction Therefore, analyzing the relationship between buying behavior, acquisition intent, and service quality is crucial for enhancing customer experiences and fostering loyalty.

Antecedents Model of Service Quality

Parasuraman et al (1985) define service quality as the gap between customer expectations and their perceptions during service use The Servqual model emphasizes the assessment of service quality by comparing anticipated service standards with actual experiences Additionally, Parasuraman & Ctg (1985) introduced a five-gap model, which identifies five key components that contribute to overall service quality.

Distance 1: Distance between the perception of the company and the expectations of the customer with the expectations of the customer.

Distance 4: The distance between the quality of service provided and the quality of service communicated to the customer.

Distance 5: Distance between customer service received and customer expectations of service.

Parasuraman et al Model

The Customer Satisfaction Index (CSI) is a model that examines the relationship between key variables such as brand image, expected quality, perceived quality, and perceived value, ultimately influencing customer satisfaction and loyalty When customers are satisfied, they are likely to develop loyalty; conversely, dissatisfaction can lead to complaints Thus, customer satisfaction serves as a pivotal factor that can evoke either positive or negative emotions based on the perceived quality of a product or service.

The master's thesis in Finance explores the relationship between customer loyalty and brand satisfaction, highlighting that dissatisfaction with products or services can result in negative behaviors towards the brand The VCSI Model, or Customer Satisfaction Index Vietnam, adheres to established standards and emphasizes the importance of understanding the factors that influence customer satisfaction This study introduces a VCSI model comprising seven key variables to effectively analyze these influences.

The causal variables of the model are: Brand image, Expected quality, Perceived quality, Perceived value, Customer satisfaction (central factor), Complaints, into the customer.

The VCSI model distinguishes itself from other CSI models by emphasizing the unique socio-economic characteristics of each country, which shape the relationships between variables This model incorporates successful experiences from leading frameworks while adapting to the specific features of the Vietnamese economy The theoretical foundation of the VCSI model is structured to reflect these tailored relationships among variables.

VCSI theory model

Source: Le Van Huy – Nguyen Th Hị a My 2014

2.5 Proposed research framework of factor effecting customer satisfaction

Based on the study of previous research, the satisfaction of customer is determined by some basic factors: Visibility, Reliability, Reactivity, and Empathy.

Tangibility: Represented by the material conditions and means used by service providers to provide services to customers.

Reliability in service delivery means that providers consistently meet their promises, ensuring customers receive the same high-quality service each time It also encompasses the expertise of employees regarding the products and services offered, which further reinforces the trustworthiness of the business.

A service provider must demonstrate a strong sense of responsibility towards customers by ensuring prompt service delivery and attentive care It is crucial to address any service-related negligence swiftly and efficiently to maintain customer satisfaction and trust.

Empathy is crucial in demonstrating how service providers, like VPBank, understand and prioritize their customers' needs and desires, regardless of their size The quality of VPBank's customer service is grounded in the SERVQUAL model, which encompasses four key components: reliability, responsiveness, empathy, and tangible elements This model serves as a framework for assessing the quality of customer care services within the banking sector.

Proposed research model

2.6 Scale of quality customer service according to the SERVQUAL model

The questionnaire employs two types of scales: a nominal scale for gathering subject information and a Likert scale to evaluate the acceptance of quality care criteria at the Bank Specifically, the Likert scale ranges from 1 to 5, where 1 signifies "Absolutely disagree" and 5 indicates "Absolutely agree," allowing for the measurement of customer satisfaction with the customer service at VPBank’s headquarters.

The SERVQUAL model evaluates service quality through 24 variables across four key dimensions: tangibility, reliability, responsiveness, and empathy This framework is grounded in research by Emin & Gregory (1992) and Pham & Bui (2010), which both utilized these 24 variables to assess service perceptions and expectations Specifically, the SERVQUAL scale has been applied to measure customer satisfaction at the VPBank headquarters, demonstrating its effectiveness in capturing the nuances of service quality in both global and Vietnamese contexts.

Customer Satisfaction with customer care service

Luận văn thạc sĩ Tài chính to measure the four components of satisfaction of customers about customer care services, specifically.

Table 2.1: scale of quality customer service according to SERVQUAl model.

13 VPBank has cutting-edge facilities T1

15 The staff of VPBank has a neat and polite uniform T3

19 VPBank expresses concern to customers E1

21 VPBank's staff understands your special needs E3

22 VPBank pay special attention to your most interests E4

23 VPBank has convenient transaction time E5

The information reflects client satisfaction on customer care services inherited from the Lassar & ctg (2000) research, with three measured variables:

Table 2.2 Scale of customer satisfaction according to Lassar & Ctg (2000)

1 Satisfaction with the quality of customer service Q1

3 Commitment to continue using the service Q3

To ensure accurate results in Exploratory Factor Analysis (EFA), it is crucial to have a sufficiently large sample size, with a minimum of five observation variables per measurement variable Ideally, the sample size should be less than 100 to maintain the integrity of the analysis.

22 observations, the minimum sample size is 22 x 5 = 110.

The sample was selected randomly from the list of regular customers to the counter at the VPBank headquarter and selected 180 clients.

Chapter 2 of the thesis explores the theoretical foundations of banking services, focusing on service quality and customer care As banks diversify their offerings, there is a growing emphasis on customer satisfaction Chapter 1 introduces various models for measuring customer satisfaction, highlighting the SERVQUAL Service Quality Model, which is globally recognized for its effectiveness in evaluating service quality The insights from Chapter 1 will serve as the theoretical basis for assessing customer satisfaction in banking services, forming the core of Chapter 3.

CHAPTER 3: CUSTOMER SATISFACTION AT VPBANK

Thinh Vuong Commercial Joint Stock Bank (VPBank) was founded on August 12, 1993, and has since grown significantly over nearly 25 years, expanding its network to 219 transaction offices and employing nearly 24,000 staff members By 2017, VPBank's chartered capital is projected to reach VND 15,706 billion.

VPBank is establishing itself as a credible and dynamic bank, demonstrating stable financial strength and community accountability From 2012 to 2017, VPBank experienced significant growth and profitability, positioning itself as one of Vietnam's leading commercial joint stock banks.

In particular, 2017 is a historic landmark of the bank as nearly 1.5 billion shares are officially listed on the HOSE, attracting great attention from domestic and international investors .

The remarkable growth of VPBank is demonstrated by the expansion of its network of branches and transaction offices throughout the country and the diversification of sales and distribution channels.

VPBank has undergone a complete transformation of its transaction points, enhancing their appearance, model, and service facilities to align with a strong "Customer Focus." The continuous improvement and integration of products and services aim to maximize customer benefits, ultimately satisfying existing clients and attracting new ones This strategic approach has significantly expanded VPBank's customer base, achieving rapid growth in both size and duration.

VPBank leads the market in utilizing advanced information technology across its products, services, and operational systems The bank has cultivated a robust corporate culture and successfully implemented core human resource management systems Furthermore, VPBank has established an independent, centralized, and specialized risk management system that aligns with international standards and its business strategy Committed to adopting best international practices in corporate governance, the bank continuously enhances its organizational structure while maintaining a transparent corporate governance policy.

VPBank has significantly strengthened its brand reputation, evidenced by the receipt of 20 prestigious national and international awards in 2017, highlighting its remarkable growth in brand value.

In 2017, VPBank was recognized as one of the top four banks in Vietnam for brand value and ranked among the 22 most valuable brands in the country, according to Brand Finance, a prominent brand valuation consulting firm.

VPBank has been recognized by prestigious international organizations as one of the leading Asian banks, receiving multiple awards such as "Best Bank in Vietnam for Small & Medium Businesses" in 2017 from Asia Money and Asian Banking & Finance Additionally, VPBank secured three awards for "Best SME Bank in 2017," "Best for Small and Medium Businesses," and "Best Credit Products of the Year." The Asian Banker also honored VPBank with three accolades, including "Best Digital Bank Solutions in Vietnam," "Best Bank for Credit Products in Vietnam," and "Best in Asia."

Vission and mission of VPBank

VPBank, a versatile urban commercial bank, prioritizes customer benefits above all else while also valuing employee welfare and shareholder interests The bank offers a wide range of diverse products and competitive pricing to meet customer needs VPBank is dedicated to enhancing both the material and spiritual well-being of its staff, ensuring competitive salaries and opportunities for professional development For shareholders, the bank focuses on increasing stock value and providing high annual dividends Additionally, VPBank is committed to fulfilling its financial obligations to the state and actively engaging in social initiatives and charitable work to support the community.

The vission is realized by a strategy of two main pliers:

 Organic growth is fierce, focusing on the individual, small and medium entreprise segment, while exploiting opportunities in the corporate and consumer segments.

 Building solid foundation systems in terms of organization, personnel, technology, operations.

Backstopping on the above strategy is the corporate culture of VPBank, base on six core values:

VPBank's achievements during the transition period have validated its strategic direction, leading to significant improvements in its image, service quality, and professionalism The bank's growing trust is reflected in the increasing number of new customers and mobilized funds, positioning VPBank as a desirable employer in the banking and finance sector These elements are crucial in VPBank's ambition to rank among the top five commercial joint-stock banks in Vietnam and to be one of the leading retail banks by 2017.

VPBank is committed to its vision and strategy, aiming to deliver maximum benefits to customers while prioritizing the interests of employees and shareholders The bank focuses on cultivating a strong business culture and making meaningful contributions to community development.

VPBank's new brand, guided by the motto "Action for Dreams," emphasizes professionalism, dedication, uniqueness, and simplicity With a long-term vision, VPBank is committed to enhancing its image as a customer-centric bank that prioritizes friendly service and rapid response times.

Tiêu đề	Customer Satisfaction Assessment For Quality Of Customer Service At Thinh Vuong Commercial Jointstock Bank
Tác giả	Nguyen Tu Anh
Người hướng dẫn	Associate Professor Ph.D Vu Thanh Hung
Trường học	National Economic University
Chuyên ngành	Bachelor of Business Administration in English
Thể loại	thesis
Năm xuất bản	2019
Thành phố	Hanoi

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