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

4.4.1 Exploratory factor analysis for independent 14

4.4.2 Exploratory factor analysis for dependent variables 16

1 INTRODUCTION Company background

Vietnam Prosperity Joint Stock Commercial Bank (VP Bank) was established on August 12, 1993 After nearly 25 years of operation, VP Bank has developed its network to 219 transaction points with the number of staffs was nearly 24,000 employees By the end of 2017, VP Bank's charter capital has increased to VND 15,706 billion

VP Bank has many types of credit cards corresponding to different income levels and incentives The lowest income for VP Bank credit cards is 4.5 million / month Currently, VP Bank There are 13 types of credit cards VP Bank has been provided by this bank to the market with different names and characteristics Nowadays, VP Bank is suppling ATM cards for individual customers in every province in Viet Nam and applies the salary payment through bank accounts toward organization customers Moreover, the establish of its subsidiary Timo Bank which – is formed as a digital bank open the trends of using ATM cards easily, quickly as well as conveniently However, ATM cards of VP Bank also faces to heavy competition from rivals, especially international banks which also have the modern technology and good services 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

Rationale

A customer satisfaction survey is an effective tool for assessing customer engagement When customers point out what products or services they like and dislike, they also reveal what keeps them and makes them come back to buy Customer satisfaction survey is an opportunity for customers to express their opinions, and they can present their opinions, freely and without interruption Then, analyzing customer comments and data will help customer segmentation into groups, based on what should be done to meet their needs, expectations, etc

The benefits of a customer satisfaction survey are not limited to just a few aspects of the relationship between the company and the customer And the customer feedbacks play an important role in making business strategies

In today's competitive environment, the card market is more active and customers are the determining factor for a bank's existence Therefore, banks always aim to provide customers with satisfaction and satisfaction when using ATM cards

Stemming from the need to study the above issue, I chose the topic “Researching factors affecting individual customer satisfaction with the quality of ATM

• 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 1.3.2 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

Research questionnaire

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 VP Bank?

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

Research structure

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

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

2 LITERATURE REVIEW 2.1 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

2.2 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)

2.3 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

3 METHODOLOGY 3.1 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

3.2 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:

Source: Methodology Part

3.3 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

3.4 Research sample and sampling method

3.4.1 Target interviewees

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

3.4.2 Sample size

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%

3.4.3 Sampling methods

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

3.5 Questionnaire

3.5.1 Content

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)

3.5.2 Measurement

Part 1: Filter Questions 1 Are you using any Bank ATM card?

No (Stop, Thank you!)

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

Adapt_1 Staff understand clearly the customer’s needs and

Effectively deal with the problems Moutinho, L., & Brownlie, D T., 1989

Adapt_2 Employees promptly resolve customer complaints

Adapt_3 Easily contact the switchboard to answer questions about

Faci_3 The interface of ATM is easy to use Faci_4 This ATM card is designed eye-catching

M4 Assurance

Ass_1 Customers feel safe when using this ATM card service of 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

M6 Price

Price_1 Fee for using ATM cards is reasonable and competitive

compared with other banks’s fee Moutinho, L., & Brownlie, D T., 1989

Price_2 The bank provides attractive interest rate for ATM card Price_3 Fee for changing or renewing is reasonable

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

Part 3: Personal Information 3 Please indicate your gender

Male Female 4 What is your age?

From 18 - 24 years old

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

4.6 Regression

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:

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 –

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

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:

Y= 3.901 + 0.397* CR + 0.483*S + 0.180*F