Improving customer service quality for individual customers at vndirect securities joint stock company

NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL LUU VINH HIEN IMPROVING CUSTOMER SERVICE QUALITY FOR INDIVIDUAL CUSTOMERS AT VNDIRECT SECURITIES JOINT STOCK COMPANY Bachelor of Business Administration in English (E-BBA) Thesis ề Đ án HANOI, 2016 nh Ki tế ốc qu tế NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL BUSINESS SCHOOL IMPROVING CUSTOMER SERVICE QUALITY FOR INDIVIDUAL CUSTOMERS AT VNDIRECT SECURITIES JOINT STOCK COMPANY Bachelor of Business Administration in English (E-BBA) Thesis Student: Luu Vinh Hien Class: EBBA – 4A Supervisor: Dr Nguyen Quoc Duy ề Đ án HANOI, 2016 nh Ki tế ốc qu tế ACKNOWLEDGEMENT This thesis is to fulfill the requirement of English Bachelor of Business Administration (E-BBA), Business School – National Economics University (NEU Business School) Firstly, I would like to express my sincerely appreciation to my supervisor – Dr Nguyen Quoc Duy – who always gives me his dedicated guidance, instructions and valuable comments for improvement of my study throughout the whole process of this thesis Secondly, I would like to thank to all teachers and staff of NEU Business Schools, who have provided me with their knowledge and support for more than three year studying here Besides, I would like to thank VNDIRECT’s colleges, especially Mr Vu Hoang Viet and Ms Trinh Thanh Thuy, for their support and advices during my internship I would like to thank all customers who helped me conduct this survey to complete my research Their support is an important factor to the success of this thesis Last but not least, I would like to express my profound gratitude to my family and friends who have encouraged and supported me during my time studying at the E-BBA program ề Đ án nh Ki tế ốc qu tế TABLE OF CONTENT ề Đ ACKNOWLEDGEMENT .1 TABLE OF CONTENT LIST OF TABLES LIST OF CHARTS LIST OF FIGURES .6 EXECUTIVE SUMMARY CHAPTER 1: INTRODUCTION 1.1 RATIONALE .9 1.2 RESEARCH OBJECTIVES .10 1.3 RESEARCH QUESTIONS 10 1.4 RESEARCH SCOPE 10 1.5 RESEARCH METHODOLY 11 1.5.1 Secondary Data .11 1.5.2 Primary Data 11 1.5.3 Data analysis 12 1.6 STRUCTURE OF THE RESEARCH 12 CHAPTER 2: THEORETICAL BACKGROUND ON THE QUALITY OF CUSTOMER SERVICES IN SECURITIES COMPANIES .14 2.1 THEORETICAL BACKGROUND OF CUSTOMER SERVICE QUALITY 14 2.1.1 The concept of customer service 14 2.1.2 The concept of customer service quality .15 2.2 THE CONCEPT OF QUALITY OF SECURITIES COMPANY 17 2.2.1 Definition of securities company 17 2.2.2 Functions of securities companies 17 2.3 MODEL FOR MEASURING CUSTOMER SERVICE QUALITY 18 2.3.1 Service quality model of Gronroos, 1984 18 2.3.2 SERVQUAL Model of Parasuraman & ctg (1985) .20 2.3.3 SERVPERF Model of Cronin and Taylor (1992) 25 2.3.4 Model of Luong Thi Mai Huong (2015) of MBA thesis “Service quality of Nha Viet Real Estate Joint Stock Company” 27 2.4 CONCEPTUAL FRAMEWORK .29 án nh Ki tế ốc qu tế ề Đ CHAPTER 3: RESEARCH METHODOLOGY .34 3.1 RESEARCH PROCESS 34 3.2 RESEARCH METHODOLOGY .35 3.2.1 Qualitative research .35 3.2.2 Quantitative research .35 3.3 DATA COLLECTION .36 3.3.1 Secondary data 36 3.3.2 Primary data 37 3.4 DATA ANALYSIS 38 3.4.1 Cronbach’s Alpha Reliability Analysis 38 3.4.2 Exploratory Factor Analysis (EFA) .38 3.4.3 Linear Regression Analysis 39 CHAPTER 4: THE RESULT OF THE RESEARCH – THE CURRENT SITUATION OF CUSTOMER SERVICE QUALITY FOR INDIVIDUAL CUSTOMERS AT VNDIRECT SECURITIES JOINT STOCK COMPANY 40 4.1 OVERVIEW OF VNDIRECT SECURITES JOINT STOCK COMPANY .40 4.1.1 Company Profile 40 4.1.2 History of Development 41 4.1.3 Functions and missions of VNDIRECT 42 4.1.4 Company Structure 44 4.1.5 VNDIRECT’s services, market and customers .44 4.2 THE ASSESSMENT OF CUSTOMER SERVICE QUALITY FOR INDIVIDUAL CUSTOMER AT VNDIRECT SECURITIES JOINT STOCK COMPANY 49 4.2.1 Research Sample Description 49 4.2.2 Respondent Profile 50 4.2.3 Cronbach’s Alpha Reliability Analysis 56 4.2.4 Exploratory Factor Analysis 59 4.2.5 Linear Regression Analysis 62 4.2.6 The current situation of customer service quality for individual customers at VNDIRECT Securities Joint Stock Company 68 4.3 CONCLUSION 75 án nh Ki tế ốc qu tế CHAPTER 5: RECOMMENDATIONS FOR IMROVING THE QUALITY OF CUSTOMER SERVICE FOR INDIVIDUAL CUSTOMERS AT VNDIRECT SECURITIES JOINT STOCK COMPANY 78 5.1 ORIENTATIONS TO IMPROVE THE CUSTOMER SERVICE QUALITY FOR INDIVIDUAL CUSTOMERS AT VNDIRECT SECURITIES JOINT STOCK COMPANY 78 5.2 RECOMMENDATIONS AND SOLUTIONS TO IMPROVE THE CUSTOMER SERVICE QUALITY FOR INDIVIDUAL CUSTOMERS AT VNDIRECT SECURITIES JOINT STOCK COMPANY 79 5.2.1 Improving human resources and competence of staff 79 5.2.2 Improving and utilizing technology advantages 80 5.2.3 Upgrading customer database collection .81 5.2.4 Improving the Hotline and Call Center 82 5.2.5 Improving marketing strategies and creating brand image 82 5.2.6 Applying CRM system in management 83 CONCLUSION .84 REFERENCES .85 APPENDIX 1: SURVEY FORM FOR CUSTOMERS .88 APPENDIX 2: IN-DEPTH INTERVIEW QUESTIONS FOR VNDIRECT MANGAGERS .94 APPENDIX 3: DESCRITIVE STATISTICS .95 APPENDIX 4: CRONBACH’S ALPHA RELIABILITY ANALYSIS 96 APPENDIX 5: EXPLORATORY FACTOR ANALYSIS 99 APPENDIX 6: CORRELATION ANALYSIS 102 APPENDIX 7: REGRESSION ANALYSIS .103 ề Đ án nh Ki tế ốc qu tế LIST OF TABLES Table 4.1 Cronbach’s Alpha Reliability Analysis 57 Table 4.2 Cronbach’s Alpha Reliability Analysis Result Summary .59 Table 4.3 Rotated Components Matrix 60 Table 4.4 EFA results for Independent Variables 61 Table 4.5 EFA results for Dependent Variables “Quality of Service” 62 Table 4.6 Correlation Analysis for factors influencing customer service quality of individual customers at VNDIRECT 63 Table 4.7 Model Summary .64 Table 4.8 ANOVA analysis result 65 Table 4.9 Coefficient of Regression Model 66 Table 4.10 Hypothesis Test Results .67 Table 4.11 Customer assessment of VNDIRECT services .68 ề Đ án nh Ki tế ốc qu tế LIST OF CHARTS Chart 4.1 Age group of Respondents 50 Chart 4.2 Gender groups of Respondents .51 Chart 4.3 Education Level of Respondents 52 Chart 4.4 Investing experience of Respondents 52 Chart 4.5 Information Approaches of Respondents 53 Chart 4.6 Types of services used by Respondents 54 Chart 4.7 Making transactions method of Respondents 55 Chart 4.8 Frequency of using VNDIRECT services of respondents .56 Chart 4.9 Customers’ Assessment of VNDIRECT Services 74 LIST OF FIGURES Figure 2.1 The Nordic model (Gronroos,1984) .19 Figure 2.2 Customer Service Model of Parasuraman (1985) 22 Figure 2.3 Measuring Service Quality using SERVQUAL model 23 Figure 2.4 Measuring Service Quality using SERVPERF model 26 Figure 2.5 Conceptual Framework for measuring customer service quality at VNDIRECT Securities Joint Stock Company 31 Figure 3.1 Research process 34 Figure 4.1 Organization Structure of VNDIRECT 44 ề Đ án nh Ki tế ốc qu tế EXECUTIVE SUMMARY In the year 2000, Vietnam Stock Market was established and created a method to strengthen the not only the development of capitalization but also the economy of the country The appearance of such many securities company create a competitive environment in the stock market and requires them to continuously develop and improve its competence In this situation, VNDIRECT Securities Joint Stock Company was founded in 2007 with specialization of securities services The company has been expanding its position in stock market and become one of top ten Securities Company in Vietnam Stock Market Contribution to the success of the company is the important role of customer service for individual customers In this thesis, I aim to identify the factors influence to customer service and the current situation of customer service quality for individual customers of VNDIRECT Securities Joint Stock Company –, in order to find some practical solutions to improve the quality of customer service for individual customers and competitive advantages of the company This research used secondary data collected from articles, reports, official website of VNDIRECT and primary data collected from interviews with 04 manager of VNDIRECT and survey of 123 customers having trading account at VNDIRECT Based on the data collected and a number of analyses, a research model of 05 factors having impacting on the quality of services as well as the strengths and weakness of the customer service system at VNDIRECT were defined After using SPSS and Microsoft Excel for analyzing, the result shows that the 05 factors - – which are “Transactions”, “Infrastructure and Facilities”, “Competence of Staff”, “Customer Care” and “Image of Company”- all have positive impact on quality of service at VNDIRECT It is also revealed that currently at VNDIRECT, the transactions process and the technology system of VNDIRECT Đ ề are highly praised by the customers Fortunately, along with competence of staff, án nh Ki tế ốc qu tế they are the main causes which influences the most to the quality of services for individuals experiencing securities services at VNDIRECT However, there are still some problems with customer care and the telephone hotline which trouble customers with some inconveniences, which requires VNDIRECT to have immediately solutions Being aware of these issues, a set of recommendations are suggested for improving the situation at VNDIRECT, including human resource policies, utilizing cutting edge technology, improving staff competence (especially hotline staff) and focusing on building brand image In these solutions, technology is significantly emphasized because its number of applications is enormous and it is also the main competitive advantage compared to other companies By utilizing technology, not only the management process will become much easier but also the investment experiences of the customers as well Hopefully, these recommendations will be not only useful for the situation of VNDIRECT Securities Joint Stock Company but also other securities companies in the industry to help the quality of customer service become more professional and brings the best benefits for the customers and the economy ề Đ án nh Ki tế ốc qu tế INFRASTRUCTURE AND FACILITIES Location of VNDIRECT’s office is easy for 5 5 5 5 customers to find and access to Operation hours is convenient to customer’s demand VNDIRECT office has high technology and modern equipment and facilities (computers, stock transactions screens, website) VNDIRECT office is visually appealing and hygiene VNDIRECT effectively apply modern technology into transactions and management process COMPETENCE OF VNDIRECT STAFF Staff has professional knowledge and skills of securities Staff is always willing to serve customers’ demand and solve customer’s problems When receiving customers’ orders, VNDIRECT staff could quickly give prompt services in certain amount of time Staff has professional and polite working attitudes 5 Staff always serves to bring for the best benefits 5 for the customers Staff always shows attentions and listen to personal investment demand and investment experiences of each customer Staff instills confidence and trust in customers ề Đ án nh Ki tế 92 ốc qu tế CUSTOMER CARE VNDIRECT solves customer’s complaints and problems quickly and satisfactorily Processes are convenient and easy Customer service hotline take care of customers’ 5 5 5 5 orders effectively VNDIRECT’s securities investment workshops provide beneficial and interesting guidelines for customers TRANSACTIONS Transactions fee of VNDIRECT’s services is competitive with other securities companies Making transaction orders at VNDIRECT office is accurate, fast and convenient Making transaction orders by customer service hotline system is accurate, fast and convenient Making transaction orders by online website system is accurate, fast and convenient Investment consulting products and services (brokerage services, securities newsletters, etc.) of VNDIRECT are beneficial for customers Financial and transaction supporting services (advanced payment, purchase order guarantee, term deposit, securities lending cooperation, etc.) at VNDIRECT are beneficial for customers Information of securities exchange market on ề Đ VNDIRECT’s website is always up-to-dated, án nh Ki tế 93 ốc qu tế accurate and easy for customers to access Customers always feel safe and fair when making 5 5 5 5 5 securities transactions at VNDIRECT VNDIRECT always keep customers’ transactions information secret and accurate IMAGE OF COMPANY VNDIRECT provide customers with professional and trustworthy services VNDIRECT staff has professional style while serving customers Transaction environment of VNDIRECT is professionally and friendly designed VNDIRECT staff always dress neatly, staff uniform is nicely designed Website of VNDIRECT is nice and professionally designed QUALITY OF SERVICE VNDIRECT is a trustworthy securities companies for customers Customer is willing to recommend to friends and family to use VNDIRECT’s securities services Customer is always think of VNDIRECT when customers want to exchange, make transactions or invest into securities Customer is always satisfied when making securities transactions at VNDIRECT ề Đ án nh Ki tế 94 ốc qu tế IV YOUR COMMENTS FOR CUSTOMER SERVICE AT VNDIRECT THANK YOU VERY MUCH! ề Đ án nh Ki tế 95 ốc qu tế APPENDIX IN-DEPTH INTERVIEW QUESTIONS FOR VNDIRECT MANGAGERS Dear Sir/Madam I’m Luu Vinh Hien, student of E-BBA program, Business School, National Economics University I’m currently conducting my thesis research with the topic “Improving customer service quality of individual customers at VNDIRECT Securities Joint Stock Company” I would like to study the quality of securities services at VNDIRECT with the desire that my thesis would be useful in reality to improve the quality of customer service at VNDIRECT There are several questions I would like to have opinions about the factors influencing the customer service quality for individual customer at VNDIRECT All the information of this interview is only used for my research and will be kept confidential Could you tell me the objective of VNDIRECT in the current time and in the near future? What factors you think that having influences to the customer services quality at VNDIRECT? What are the most important factors? What competences of staff you think that are required by the customers? What you think what VNDIRECT could to improve its customer service for individual customers? Đ ề THANK YOU VERY MUCH! án nh Ki tế 96 ốc qu tế APPENDIX DESCRITIVE STATISTICS Descriptive Statistics IF1 IF2 N 123 123 Minimum Maximum 5 Mean 3.85 3.80 Std Deviation 786 673 IF3 123 4.02 812 IF4 IF5 123 123 5 3.76 4.14 881 853 CS1 123 3.78 815 CS2 123 3.78 815 CS3 123 3.53 750 CS4 123 4.02 683 CS5 123 3.72 697 CS6 123 3.45 831 CS7 123 3.76 728 CC1 CC2 123 123 5 3.31 3.49 799 862 CC3 123 3.64 997 CC4 123 3.59 858 TS1 123 3.51 862 TS2 123 3.73 736 TS3 123 3.61 915 TS4 123 3.88 765 TS5 123 3.68 901 TS6 TS7 123 123 5 3.85 3.78 846 901 TS8 123 3.71 807 TS9 123 3.98 814 IM1 123 3.83 827 IM2 123 3.73 628 IM3 123 3.80 836 IM4 123 3.93 898 IM5 123 3.52 806 QS1 QS2 123 123 1 5 3.78 3.80 928 893 QS3 123 3.76 881 QS4 123 3.95 857 Valid N (listwise) 123 ề Đ án nh Ki tế 97 ốc qu tế APPENDIX CRONBACH’S ALPHA RELIABILITY ANALYSIS Reliability Statistics Cronbach's N of Items Alpha 869 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Correlation Alpha if Item Deleted IF1 15.39 7.224 656 850 IF2 15.44 7.527 712 841 IF3 15.32 6.661 786 818 IF4 15.49 6.547 730 833 IF5 15.34 7.112 609 864 Reliability Statistics Cronbach's N of Items Alpha 912 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Correlation Alpha if Item Deleted 22.41 13.081 823 888 CS2 22.41 13.573 727 899 CS3 22.51 13.924 735 898 CS4 22.17 14.356 730 899 CS5 22.59 14.409 700 902 CS6 22.63 13.316 757 896 CS7 22.44 14.412 662 906 ề Đ CS1 án nh Ki tế 98 ốc qu tế Reliability Statistics Cronbach's N of Items Alpha 760 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Correlation Alpha if Item Deleted CC1 10.88 4.436 644 663 CC2 10.80 4.240 636 662 CC3 10.49 3.645 683 688 CC4 10.71 5.274 312 824 Reliability Statistics Cronbach's N of Items Alpha 920 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Correlation Alpha if Item Deleted TS1 30.39 28.174 654 915 TS2 30.17 29.012 675 914 TS3 30.17 26.061 857 901 TS4 30.07 27.757 814 905 TS5 30.12 27.010 757 908 TS6 30.05 27.194 793 906 TS7 30.12 28.337 600 919 TS8 30.20 27.847 753 908 TS9 29.93 29.331 657 919 ề Đ án nh Ki tế 99 ốc qu tế Reliability Statistics Cronbach's N of Items Alpha 837 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Correlation Alpha if Item Deleted IM1 15.34 6.522 610 812 IM2 15.44 7.379 688 821 IM3 15.37 6.037 741 774 IM4 15.24 5.792 737 775 IM5 15.29 6.848 642 830 Reliability Statistics Cronbach's N of Items Alpha 776 Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Correlation Alpha if Item Deleted QS1 11.51 4.531 555 736 QS2 11.49 4.334 660 679 QS3 11.54 4.726 544 740 QS4 11.34 4.751 562 731 ề Đ án nh Ki tế 100 ốc qu tế APPENDIX EXPLORATORY FACTOR ANALYSIS KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy .721 Approx Chi-Square Bartlett's Test of Sphericity 3722.744 df 406 Sig .000 Total Variance Explained Compon Initial Eigenvalues Extraction Sums of Squared Rotation Sums of Squared Loadings Loadings ent Total 14.64 % of Cumulativ Variance e% Total % of Cumulativ Variance e% Total % of Cumulativ Variance e% 50.495 50.495 14.643 50.495 50.495 5.814 20.049 20.049 2.183 7.526 58.021 2.183 7.526 58.021 4.844 16.703 36.753 1.631 5.623 63.644 1.631 5.623 63.644 4.075 14.051 50.803 1.333 4.597 68.241 1.333 4.597 68.241 3.378 11.649 62.452 1.072 3.697 71.938 1.072 3.697 71.938 2.751 9.485 71.938 983 3.388 75.326 866 2.985 78.311 844 2.911 81.222 639 2.204 83.426 10 600 2.068 85.494 11 572 1.971 87.464 12 516 1.778 89.243 13 441 1.522 90.765 14 422 1.455 92.220 15 346 1.194 93.414 ề Đ án nh Ki tế 101 ốc qu tế 16 299 1.030 94.444 17 275 947 95.391 18 242 834 96.225 19 229 791 97.015 20 171 589 97.604 21 153 528 98.132 22 123 425 98.557 23 107 369 98.927 24 089 306 99.233 25 075 257 99.490 26 068 235 99.725 27 045 155 99.880 28 024 084 99.964 29 010 036 100.000 Extraction Method: Principal Component Analysis Rotated Component Matrixa Component TS5 821 TS9 815 TS6 762 TS1 708 TS3 697 TS4 664 343 TS7 581 405 TS2 553 364 TS8 504 379 380 366 385 553 377 329 864 CS2 777 CS5 753 ề Đ CS4 332 374 697 án CS1 nh Ki tế 102 350 ốc qu tế CS6 640 CS3 608 CS7 602 IF4 306 565 744 308 IF2 614 437 IF5 592 499 IF1 380 IF3 405 496 466 479 466 IM5 756 IM4 404 IM2 636 348 IM1 459 IM3 442 CC3 CC2 572 478 476 464 449 451 401 367 609 520 534 CC1 474 357 478 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in 15 iterations KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy .673 Approx Chi-Square Bartlett's Test of Sphericity 149.771 df Sig .000 Total Variance Explained Component Total Initial Eigenvalues Extraction Sums of Squared Loadings % of Variance Total Cumulative % 2.399 59.966 59.966 813 20.318 80.284 486 12.162 92.446 302 7.554 ề Đ 2.399 án 100.000 nh Ki Extraction Method: Principal Component Analysis tế 103 % of Variance 59.966 Cumulative % 59.966 ốc qu tế APPENDIX CORRELATION ANALYSIS Correlations MIF Pearson Correlation MIF Pearson Correlation 746** 000 000 000 000 000 123 123 123 123 123 ** ** ** 660** 799 123 123 ** ** 628 628 712 000 000 000 123 123 123 123 ** ** 655** 000 000 000 123 123 123 ** 677** 000 000 000 000 N 123 123 123 ** ** ** 648 648 000 Sig (2-tailed) 736 736 719 795 Sig (2-tailed) 000 000 000 N 123 123 123 123 123 123 ** ** ** ** 736** 802 712 719 795 Sig (2-tailed) 000 000 000 000 N 123 123 123 123 123 123 ** ** ** ** ** Pearson Correlation MQS 802** N Pearson Correlation MIM MQS 676** ** 676 MIM 626** 123 626 MTS 799** 000 Pearson Correlation MTS MCC Sig (2-tailed) Pearson Correlation MCC Sig (2-tailed) N MCS MCS 746 660 655 677 000 736 Sig (2-tailed) 000 000 000 000 000 N 123 123 123 123 123 ** Correlation is significant at the 0.01 level (2-tailed) ề Đ án nh Ki tế 104 123 ốc qu tế APPENDIX REGRESSION ANALYSIS Variables Entered/Removeda Model Variables Variables Entered Removed Method MIM, MCS, MCC, MTS, MIF Enter b a Dependent Variable: MQS b All requested variables entered Model Summary Mod R el R Adjusted R Std Error Square Square of the Change Statistics Estimate 799a 638 623 R Square F Change Change 42290 638 a Predictors: (Constant), MIM, MCS, MCC, MTS, MIF ề Đ án nh Ki tế 105 41.284 df1 df2 Sig F Change 117 000 ốc qu tế ANOVAa Model Sum of Squares df Mean Square Regression 36.917 7.383 Residual 20.925 117 179 Total 57.841 122 F Sig 41.284 000b a Dependent Variable: MQS b Predictors: (Constant), MIM, MCS, MCC, MTS, MIF Coefficientsa Model Unstandardized Standardized Coefficients Coefficients B Std Error t Sig Statistics Beta (Constant) 232 049 MIF 207 028 MCS 174 MCC Collinearity Tolerance VIF 898 031 188 1.615 009 127 4.402 040 170 1.928 046 196 2.525 049 048 144 451 043 130 3.031 MTS 391 017 270 3.336 001 151 3.977 MIM 129 025 123 1.228 022 108 3.246 a Dependent Variable: MQS ề Đ án nh Ki tế 106 ốc qu tế