Factors affecting the satisfaction of individual customers using atm cards

Therefore, VP Bank needs to understand what are the factors impact on the customer satisfaction when using ATM cards to gain the competitive advantages in long-term business period.. Wha

INTRODUCTION

Objectives

• Identify factors affecting customer satisfaction on the quality of ATM card services at banks in HCM City

• Measure the impact of these factors

• Compare differences in gender, age, income and how it affects customer satisfaction

• Since then, offer solutions to improve customer satisfaction about ATM cards.

Scope

The research is conducted via online channel such as Facebook, email and Zalo The participants of this survey are people in every range of age, gender living in Viet Nam who are using ATM cards of banks operating in Viet Nam

According to above purpose, the questions for this research are formulated as below:

1 What do the factors mostly impact on satisfaction of individual customers using ATM cards?

2 How can these factors influence customer satisfaction in using ATM cards of

3 What are the lesson learned for VP Bank to improve the ATM service for individual customers?

This research include 5 main parts as follows:

Part 1: Introduction: to introduce about the company background, objectives as well as requirement of the research

Part 2: Literature review: to introduce some of researches, concepts and theories of previous authors that are related to the customer satisfactions in ATM services and SERVQUAL model is used to apply for this research

Factors affecting the satisfaction of individual customers using ATM cards 3

Part 3: Methodology: to list down the related questions in quantitative survey used to collect the data with the sample size is about 150 customers in Viet Nam and using SPSS software to analyse these data

Part 4: Analysis and Results: to reveal results of the survey and analysis the main factors impact on customer satisfaction

Part 5: Recommendation and conclusion: rely on the results in previous part, recommendations is made to help VP Bank improve their ATM services as well as pointing out the important aspects that the bank need to focus on.

LITERATURE REVIEW

Customer satisfaction

According to Terrence Levesque and Gordon H.G.McDougall (1996) citied: customers satisfaction is the feeling/ emotional of customer to service provider after using their service or product

In detail as Oliver (1999, cited Do Tien Hoa, 2007), customers satisfaction is the emotional/customers feedback (compliment) of customer to service providers basing on the difference between what they receiving in compare with what their expectation before

Hence, customers satisfaction is formed by way of a cognitive comparison of perceived performance of a product or service and the expectations of the customer had before purchasing (Oliver, 1980) Basing on the core services factors, it is divided into 3 level of customers satisfaction If product or services do not meet minimum requirements of customers that cause dissatisfaction, if it just fulfilled their needs or requires lead to customers satisfaction Moreover, if product or services exceeds expectations leading to customers delight or high satisfaction Customer satisfaction is associated with customer expectations Expectations are formed based on the previous experience of customers, opinions of friends and information from marketers So, in order to satisfy customers, the bank must understand the expectations of customers and thereby give reasonable expectations Because if they give low expectations, they can satisfy customers but not enough to attract customers On the contrary, if they raise expectations too high, customers may be disappointed.

Relationship between customers satisfaction and service quality of ATM

Service quality and customers satisfaction is different definition but they have closely relationship in term of researching of services (Parasuraman & Ctg, 1988)

Most of researchers have established the related between service quality and customer satisfactions and shown that there is a relationship between them Therefore, according to previous research showed that service quality is leading to customer satisfaction On the other hand, the relationship between service quality and customer satisfaction is a causal relationship, in which service quality is what was created first and then decided on customer satisfaction In that relationship, service quality considers as critical factor effect to customer satisfaction (Spreng and Mackoy,

1996), also as an influential factor for customer satisfaction (Cronin and Taylor, 1992), and if we improve service quality, we can increase customer satisfaction (Nguyen Thi Thanh Loan and Phuong Kim Phung Hoang, 2011)

SERVQUAL model

Giving the fact that, SERVQUAL model is known as one of most popular assessment tools of service quality assesmeent It’s firstly developed by Parasuraman in 1985 and enhance in 1988,1990, and 1994 In the ealier, service quality was defiend as the different between customer’s expectation of the service and the perception of their experience with service Basically, service quality is finalized via five factors named as: tangibility, reliability, responsiveness, assurance and empathy (Parasuraman, 1988) and the researcher decide to supplement two factors of convenience and price in this model In particularly, each factor was defined as following:

• Reliability: demonstrate the ability to perform an appropriate and accurate service at the first sight

• Adaptability: relating to adapt customer requirements as quickly as possible and reduce the waiting time for customer Staff are always willing to help and fulfill customer’s need and handle properly any customer’s request with prompt action

• Facility: physical facilities, printed and visual material for communication, equipment and appearance of staff

• Assurance: relating to create the belief of customers about the reputation, staff working and staff communication

• Convenience: presented through the wide and smooth system with the products are easy to use and accepted at many transaction points

• Price: giving the suitable price and fee that are affordable and accepted by customer

In general, there were some different between SERVQUAL model in 1985 and SERVQUAL model in 1988 However, SERVQUAL model of Parasuraman in 1988 was considered as complete scale of service quality, value and reliability and application for many different kinds of services

In summary, SERVQUAL model is widely applied in retail service and business with the purpose to know how customer evaluate the service which they received As Parasuraman suggested this model should enhance three or four times per year to ensure enterprise understand how customer respond or evaluate the service quality Furthermore, enterprise can combine SERVQUAL model with different model to identify the service quality evaluate by their employee and open with contributed idea of employee to improve good service quality to customers.

METHODOLOGY

Research approach

This report mainly focuses on quantitative approach that is suitable with the purpose of finding what are the main criteria impact on customer satisfaction when using ATM cards.

Research design

As mentioned above, the research method used is quantitative approach and through the online survey, primary data is collected sufficiently, besides, secondary data from newspaper, magazines, journals about market information is also gather to avoid the biased results Hence, the research process is as follow:

Research objectives Literature review Research model Questionnaire

Quantitative research Data input Analysis Conclusion and

Data collection

The primary data collected from direct survey will be used Moreover, the secondary data that referred from textbooks, documents, researches, journals and newspapers of ATM service in Viet Nam also are considered and used.

Research sample and sampling method

The target population is the every individual that using ATM cards of any bank in Viet Nam And the participants can be male of female with all range of age that living in Viet Nam

The sample size should be larger 100 and larger or at least equal 5 times of total number of measurement items (Hair, 2006) Therefore, according to the number of measurement items in this research (25 items), then the sample size needs to be

125 (5 * 25) However, based on the necessary objectivity of research, Comfrey & Lee

(1992) indicated that the sample size which is under 100 is poor, from over 100 to 200 is fair and 300 is good Therefore, to ensure the reliability as well as necessary objective as fair level, the survey is conducted with 150 valid respondents and the expectation percentage is more than 80%

The convenience sampling methods are applied in this research with the questionnaire is formed by Google Docs and sent to participant via online media such as Facebook, Email and Zalo.

Questionnaire

The questionnaire is divided into 3 parts The first one asks customers about whether they are using the ATM cards or not, and if have, which bank are they using The second part involve the questions about Reliability, Adaptability, Facilitiy, Assurance, Convenience, Price and Customer satisfaction The last one mentions to some demographic information of respondents such as gender, age and their income (Appendix 1)

1 Are you using any Bank ATM card?

Yes (Please answer the next questions)

2 Which bank card service are you using? (Can choose multiple banks)

ACB Vietcombank Vietinbank Agribank BIDV VIB Eximbank DongA Bank VP Bank OCB

HD Bank MaritimeBank Samcombank Techcombank Other

Part 2: Main Questions Using 5-points Likert scale to evaluate the ATM services of banks from: strongly disagree, disagree, neutral, agree to strongly agree

Relia_1 This bank provides card services on time as commitment

Card procedure is simple, fast and convenient for customers

Relia_3 ATM system operates smoothly and accurately

Transaction information is updated and provided fully and clearly to customers

Adapt_1 Staff understand clearly the customer’s needs and

Effectively deal with the problems Moutinho, L., &

Adapt_2 Employees promptly resolve customer complaints

Adapt_3 Easily contact the switchboard to answer questions about

Faci_1 Wide network of ATMs

Faci_2 Convenient ATM locations, easy-to-identify layout locations

Faci_3 The interface of ATM is easy to use

Faci_4 This ATM card is designed eye-catching

Ass_1 Customers feel safe when using this ATM card service of this bank Yavas, U.,

Ass_2 Staff are always polite, respectful and affable with customers

Ass_3 Employees are knowledgeable enough to answer customer questions

Convi_1 ATM is acceptable by other banking systems

Convi_2 I don't spend too much time on queuing up and waiting to make the transaction

Convi_3 I easily trade through electronic services (internet banking, mobile banking, )

Convi_4 This ATM card can be withdrawn at other bank ATMs

Price_1 Fee for using ATM cards is reasonable and competitive compared with other banks’s fee Moutinho, L., &

Price_2 The bank provides attractive interest rate for ATM card

Price_3 Fee for changing or renewing is reasonable

Sat_1 Overall, this ATM cards makes me feel satisfied

Sat_2 This bank understands customer’s needs and desires

Sat_3 I continue to use this bank's ATM card for a long-term period

Sat_4 I will introduce my relatives and friends for using this ATM cards

** Correlation is significant at the 0.01 level (2-tailed)

As a result, the test of significance presents that the hypothesis that correlations of universe is zero is rejected This means that there is relationship between customer satisfaction and 3 components

To evaluate the relationship between dependent variables and its independent variables, Regression testing is used (Sekaran, 2006), in which, the multiple linear method will be applied to determine the relationship and predict the value of dependent variables through independent variables based on this regression formulation:

- Y: dependent variable which represents the customer satisfaction about using ATM

Std Error of the Estimate

The R-square 0.716 means that 71.6% variance of dependent variable is explained by independent variables

Durbin-Watson index is 2.090 that is between 1 and 3, or extract from the Durbin-Watson table with n = 150, k = 3, alpha = 0.05, the results are Dl = 1.55 and

Du = 1.903 Therefore, Du = 1.924 < 2.090 < 4 Du = 2.91, it indicates that there is – no correlation

Total 96.985 165 a Dependent Variable: Y b Predictors: (Constant), X3, X2, X1

The Sig < 0.05 means that at least 1 independent variable impact on dependent variables, so the regression will be suitable to analyze

B Std Error Beta Tolerance VIF

VIF < 10 demonstrates that there is no signal of collinearity

The test of significance of 3 independent variables is 0.000 Therefore, we have following formula:

According to Exploratory Factor Analysis (EFA), there were 3 factors ( such as: Convenience & Reliability, Service, Facility) affect the customer satisfaction of ATM of

VP Bank In circumstance, there is no changing in convenience & reliability and facility, the service quality will be mainly affected to customer satisfactions That the reason why VP Bank should pay more attention to increase their service quality Hence, there is some recommendation to improve 3 factors mainly impact on customer satisfaction Service Quality: according to coefficient, service quality (= 483) is highest score affect to improve customer satisfaction Giving the fact that, there is no different between ATM in among of Commercial Bank in Vietnam It’s also challenges for Banks to enhance the service and knowledge of banker VP Bank should improve the service quality via both banking product and Staff quality Staff should enhance their knowledge about banking product and soft skill to deliver best service quality and financial advisor to customers VP Bank should not only focus to create best customer service, but also tend to give customer a memorable experience with VP Bank’s product, especially ATM (debit cards) In recently, VP Bank have deployed some self- service like Momo service and multi-functional ATM and personal banker to deliver best service quality to customers Besides that, VP Bank should deploy some program like Business Development Program for Banker to help employee catch -up with financial market and improve their skill in advising and fulfill customer’s need Furthermore, VP Bank should demonstrate on clear customer segments and building trust, establishing their brand image in financial market By the way, with the professional and enthusiastic banker, VP Bank believed to deliver high quality in banking service in the next 2 -3 years

Convenience & Reliability: according to coefficient, convenience & reliability ( 397) showing that there are still some concerns and enquires of customers about ATM system and ATM facility of VP Banks There is no doubt that, it’s not quite difficult to find out ATM machine of VP Banks in shopping mall, school or super market However, VP Bank should take into consideration to cooperate with Visa PlusOr Cirrus, Master to discount rate of cash advance when withdraw money in ATM of the other bank, in case VP Banks ATM is out of order It’s would bring more benefit and convenience to customer in some “high season” with high demand of cash (like Tet holiday )

Facility: according to coefficient, convenience & reliability (= 180) It’s seemed that not much impact on customer satisfaction in compare with two above factors It’s means that there is a little concern of customer in term of ATM facility of VP Banks However, VP Bank should take in consideration in up-grade or re-fresh interface of ATM machine be more security and friendly with customers Bank should regularly check the security and lighting systems of ATMs, and upgrade the transmission line for ATM systems to help customers perform transactions smoothly at other ATMs.

Al-Hawari, M., Ward, T., (2006) The effect of automated service quality on bank financial performance and the mediating role of customer retention Journal of Financial Service Marketing, 10(3): 228-243

Comrey, A L., & Lee, H B (1992) A First Course in Factor Analysis (2nd ed.) Hillsdale, NJ Lawrence Erlbaum

Cortina, J.M (1993) What is coefficient alpha? An examination of theory and applications Journal of Applied Psychology, 78: 98 104 –

Hair, J., Black, W., Babin, B., Anderson, R and Tatham, R (2006) Multivariate Data Analysis 6th Edition, Pearson Prentice Hall, Upper Saddle River

Moutinho, L., Brownlie, D T., (1989) Customer satisfaction with bank services: a multidimensional space analysis International Journal of Bank Marketing, 7(5): 23-

Nunnally, J C (1967) Psychometric Theory New York: McGraw-Hill Parasuraman, A., Valarie, A Z., Leonard, L B., (1985) A conceptual model of service quality and implications for future research Journal of Marketing, 49(4): 41-50 Tho, N Đ (2011) Phương pháp nghiên cứu khoa học trong kinh doanh, 2rd , edition Finance Publisher, p45

Williams, B., (2010) Exploratory factor analysis: A five-step guide for novices Journal of Emergency Primary Health Care (JEPHC), 8(3): 4-5

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Kumar, M., Tat Kee, F., & Charles, V (2010) Comparative evaluation of critical factors in delivering service quality of banks International Journal of Quality & Reliability Management, 27(3), 351 377 –

K Ravichandran , B Tamil Mani & S Arun Kumar (2010) Influences of service quality on Customer Satisfaction application of SERVQUAL model

Terrence Levesque, Gordon H.G.McDougall (1996)"Determinants of customer satisfaction in retail banking", International Journal of Bank Marketing, Vol 14 Issue:

Parasuraman.A, V.A Zeithaml, & Leonard.L Berry (1985), A Conceptual model of service quality and its implication for future research, Journal of marketing

Spreng, R A., & Mackoy, R D (1996) An empirical examination of a model of perceived service quality and satisfaction Journal of Retailing, 72(2), 201 214 – Cronin, J J., & Taylor, S A (1992) Measuring Service Quality: A

Reexamination and Extension Journal of Marketing, 56(3), 55 68 –

Loan, N.T.K & Hoang, P.K.H (2011) Nâng cao sự hài lòng của khách hàng sử dụng dịch vụ của ngân hàng Nông nghiệp và phát triển nông thông Việt Nam – Chi nhánh tỉnh Bình Dương, 1st edition, thuvien.ued.edu.vn

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Integration and Future Directions Academy of Management Review, 15(2), 241 265 –

I am a student at Ho Chi Minh City University of Economics We are currently researching the topic that is "Researching factors affecting the satisfaction of individual customers using ATM cards" Therefore, we hope to receive your valuable comments I certify that the information provided by you will be kept confidential and only used for this research purpose Thank you very much

Wishing your health and success

Yes (Please answer the next questions

ACB Vietcombank Vietinbank Agribank BIDV

VIB Eximbank DongA Bank VP Bank OCB

Please give me your opinion about the statements below according to the level of consent from 1 to 5, with the convention:

1 = Strongly disagree 2 = Not agree 3 = No comments 4 = Agree 5 = Strongly agree

This bank provides card services on time as commitment

3 ATM system operates smoothly and accurately

1 Staff understand clearly the customer’s needs and

Effectively deal with the problems

2 Employees promptly resolve customer complaints

3 Easily contact the switchboard to answer questions about ATM cards

2 Convenient ATM locations, easy-to-identify layout locations

3 The interface of ATM is easy to use

4 This ATM card is designed eye-catching

1 Customers feel safe when using this ATM card service of this bank

2 Staff are always polite, respectful and affable with customers

3 Employees are knowledgeable enough to answer customer questions

1 ATM is acceptable by other banking systems

2 I don't spend too much time on queuing up and waiting to make the transaction

3 I easily trade through electronic services (internet banking, mobile banking, )

4 This ATM card can be withdrawn at other bank

1 Fee for using ATM cards is reasonable and competitive compared with other banks’s fee

2 The bank provides attractive interest rate for ATM card

3 Fee for changing or renewing is reasonable

1 Overall, this ATM cards makes me feel satisfied

2 This bank understands customer’s needs and desires

3 I continue to use this bank's ATM card for a long- term period

4 I will introduce my relatives and friends for using this

THANK YOU FOR YOUR COOPERATION

Tôi là sinh viên trường Đại Học Kinh Tế Thành Phố Hồ Chí Minh Hiện tôi đang làm khóa luận tốt nghiệp với đề tài “Nghiên cứu các yếu tố tác động đến sự hài lòng của khách hàng cá nhân đang sử dụng thẻ ATM” Vì vậy, rất mong nhận được những ý ki n ế đóng góp thiết hự t c c quý Anủa h/Chị Tôi xin cam đoan những thông tin mà Anh/Chị cung cấp sẽ được giữ bí mật và chỉ sử dụng cho mục đích nghiên cứu này Xin chân thành cảm ơn Anh/ Chị.

Chúc Anh/Chị sức khoẻ và thành công

PHẦN 1: CÂU HỎI GẠN LỌC

1 Anh/Ch ị có đang sử dụng thẻ ATM của Ngân hàng nào không?

Có (Anh/Chị vui lòng tr ả lời các câu hỏi ti theo) ếp

2 Anh/ Chị đang sử dụng dịch vụ thẻ ATM của Ngân hàng nào? (Có thể chọn nhiều NH)

HD Bank MaritimeBank Sacombank Techcombank Khác…

Anh/ Chị vui lòng cho bi ý ết kiến của Anh/ Chị về các phát biểu dưới đây theo mức độ đồng ý từ 1 đến 5, với quy ước:

1= Hoàn toàn không đồng ý 2= Không đồng ý 3= Không ý kiến

1 NH này cung cấp dịch vụ thẻ đúng thời gian cam kết

2 Thủ tục làm thẻ đơn giản, nhanh chóng, tiện lợi cho khách hàng

3 Hệ thống máy ATM hoạt động thông suốt, chính xác

4 Thông tin giao dịch được cập nhật và cung cấp đầy đủ, rõ ràng cho khách hàng

Nhân viên hiểu rõ các yêu cầu của khách hàng cách nhanh chóng

Nhân viên kịp thời giải quyết thỏa đáng các khiếu nại của khách hàng

Dễ dàng liên hệ với tổng đài để giải đáp thắc mắc về thẻ ATM

1 Mạng lưới máy ATM rộng khắp

2 Địa điểm đặt máy ATM thuận tiện, cách bố trí nơi đặt máy dễ nhận biết

3 Giao diện của máy ATM dễ sử dụng

4 Thẻ ATM của NH này được thiết kế bắt mắt

1 Nhân viên luôn lịch sự, tôn trọng và niềm nở với khách hàng

2 Khách hàng cảm thấy an toàn khi sử dụng dịch vụ thẻ

ATM của ngân hàng này

3 Nhân viên có đủ hiểu biết để giải đáp các thắc mắc của khách hàng

Thẻ AMT của ngân hàng này được chấp nhận ở nhiều địa điểm giao dịch

Tôi không mất quá nhiều thời gian xếp hàng, chờ đợi để thực hiện giao dịch

Tôi dễ dàng giao dịch thông qua các dịch vụ điện tử ( internet banking, mobile banking,…)

4 Thẻ ATM của ngân hàng này có thể rút tiền ở hầu hết các máy ATM của ngân hàng khác

M7 CHÍNH SÁCH VỀ GIÁ DỊCH VỤ 1 2 3 4 5

1 Ngân hàng này có mức phí sử dụng dịch vụ thẻ hợp lý và cạnh tranh

Ngân hàng này có chính sách lãi suất hấp dẫn đối với thẻ ATM

3 Phí đổi hoặc làm mới thẻ hợp lý

1 Nhìn chung các dịch vụ liên quan đến thẻ ATM của ngân hàng này khiến tôi cảm thấy hài lòng

2 Tôi nghĩ ngân hàng này hiểu được nhu cầu, mong muốn của tôi

3 Tôi tiếp tục sử dụng thẻ ATM của ngân hàng này lâu dài

4 Tôi sẽ giới thiệu người quen sử dụng thẻ ATM của ngân hàng này

PHẦN 3: THÔNG TIN ĐÁP VIÊN

30 Xin cho biết giới tính của Anh/Chị

31 Anh/Chị thuộc độ tuổi nào?

32 Mức thu nhập hàng tháng của Anh/Chị là:

Dưới 4 triệu đồng Từ 4 – 8 triệu đồng

Từ 9 – 15 triệu đồng Trên 15 triệu đồng

XIN CHÂN THÀNH CẢM ƠN SỰ HỢP TÁC CỦA QUÝ ANH/CHỊ

ANALYSIS AND RESULTS

Regression