There are 2 main research objectives, which are proposed as below: To identify the factors affecting customer satisfaction towards credit services in BIDV – Hoang Mai branch.. These re
THE INTRODUCTION OF RESEARCH
Rationale of the study
In modern society, banking is one of the most important constituents for the development of the economy Banking plays an essential role in curbing inflation, maintaining the stability of value for money and exchange rates, contributing to the improvement of macro economy, investment and production One of the main and traditional services of every bank is providing loans to customers, which is called credit service Along with the development of the social economy, credit activities are constantly developing and improving The establishment of banking credit has a decisive impact on the development of the social production process as it ensures the adequacy of business funds to cover its costs and help business expand in the future However In an integration environment, banking is one of the areas where competition is expected to be most intense So, it is vital for many domestic banks to prepare for upcoming challenges The pressure to open up financial and banking services in the process of international economic integration forces domestic banks to proactively improve their products and services, especially credit service, if they want have a competitive edge over other competitors in the market This problem is becoming increasingly urgent as banks' income is mainly based on credit activities
In this situation, the banking industry is forced to examine their operation systems to have better insights into customer’s satisfaction of credit services Therefore, the research on factors affecting customer’s satisfaction towards credit services in order to improve credit services quality is always the first and indispensable priority in the operation of every bank
Vietnam Bank for Development and Investment (BIDV) is established in 1957 with the name Vietnam Construction Bank, and it plays significant role into the achievement of the country’s economy In 1990, it changed its name into Vietnam Bank for Development and Investment The bank function is to provide lending services to household sector and enterprises, and it also established special fund for the state projects In the period of 2001-2005, BIDV has restructured its operations in the direction of safety, sustainability, which meets international standards and at the same time continuing to improve competitiveness in the domestic and international markets In the next 5 years, BIDV has achieved noticeable results BIDV has successfully instil its brand awareness to customers BIDV has clearly identified its position compared to other domestic banks and from there, creating a breakthrough in development During this period, BIDV was selected as a wholesale bank to receive and disburse capital from Rural Finance Projects financed by the World Bank The Rural Finance Project Series has generated a total investment of up to US $ 2.1 billion in rural areas, financing about 1.7 million loans, creating over 500,000 new jobs, helping to improve people's living conditions and contribute to poverty reduction In particular, BIDV has fully collected and repaid foreign debts, without creating a public debt burden on the budget The Rural Finance Project, carried out by BIDV, is a wholesale task which has been assessed by the Government and the World Bank as the most effectively implemented ODA project among Vietnam
In the period of 2005 - 2010, BIDV continued to develop and continue to achieve important success Gradually, BIDV rose to become a reputable bank, capable of competing for international integration
In 2011 and 2012, BIDV participated in supporting the liquidity of small banks, and it has effectively supported the consolidation of the three banks of De Nhat, Tin Nghia Bank and SCB Bank This was a pioneering step in the implementation of the policy of restructuring Vietnam's commercial banking system
BIDV has comprehensively and synchronously transformed into a modern and versatile commercial bank model with 2 main sectors: Banking and Insurance Banking activities developed in the direction of expanding retail activities BIDV also established a customer-oriented business model and risk management based on modern bank criteria
Among BIDV branches, BIDV Hoang Mai branch is one of the largest – – branches in Hanoi with excellent financial performance
Table 1.1: Financial performance of BIDV Hoang Mai branch (2017-2019) –
Total revenue 1.215 1.335 1.405 120 9,88 70 5,24 Total expenses 1.110 1.204 1.255 94 8,47 51 4,24 Profit before tax 105 131 150 26 24,76 19 14,5
Source: Financial performance analysis prepared by BIDV, 2019
Through the table 1.1, it is clear that the growth rate of BIDV at Hoang Mai branch is relatively good Average revenue increased by about 7%, from VND 1,215 billion in 2017 to VND 1,405 billion in 2018 Profit before tax increased by 20% on average, from VND 105 billion in 2017 to VND 150 billion in 2019 This positive results in the business activities of BIDV Hoang Mai branch, shows the wise and comprehensive vision of the board of directors and the efforts of the branch’s employees In the next years, after the economy has gradually recovered from corona virus, marketing and customer care activities would be focused on and implemented drastically and synchronously, making BIDV Hoang branch Mai recover and grow further
In recent years, BIDV Hoang Mai branch has achieved many great achievements in all aspects Compared to other competitors in Hanoi, BIDV – Hoang Mai branch has actively carried out promotions, brand advertising, capital raising with high interest to attract more customers In terms of product diversity, the bank seems to catch up with the existing products of other banks in the market This is the diversity and richness in product development, making the bank more accessible to customers BIDV - Hoang Mai branch is a newly established branch, but it has been equipped with new and modern technical facilities, spacious and convenient transaction locations, thereby creating favourable conditions for BIDV – Hoang Mai branch to provide products and services to customers In addition, the branch is supported and trusted by the committees, authorities, local social organizations This is an important factor in banking activities, operating mainly on the word "Trust" The distribution network of the branch in the area is relatively large with 5 transaction offices with 17 ATM machines to satisfy customers’ need in the area The broad distribution network affects positively to the credit services of the branch In addition, the branch has a well-trained, skilled workforce, which has contributed greatly to the branch's business success
Based on these reasons and with my knowledge gained from the school and the real-life experience at Vietnam Bank for Investment and Development during my internship, I chose the topic "Factor influencing customer satisfaction of credit services at Bank for Investment and Development of Vietnam Hoang Mai – branch”.
Objectives of the study
There are 2 main research objectives, which are proposed as below:
To identify the factors affecting customer satisfaction towards credit services in BIDV – Hoang Mai branch
To make recommendations to improve customer satisfaction towards credit services in BIDV – Hoang Mai branch
These research objectives are fulfilled after following research questions are answered:
What are the factors of customer satisfaction towards credit services in BIDV – Hoang Mai branch?
Which factor has the highest influence on customer satisfaction towards credit services in BIDV – Hoang Mai branch?
How can BIDV – Hoang Mai improve its customer satisfaction towards credit services?
Scope and Limitations of the research
This study is conducted within specific scopes
The topic of the research is to identify factors affecting to customer satisfaction towards credit services of BIDV Hoang Mai branch –Therefore, the research is conducted in BIDV – Hoang Mai branch
The number of customers of BIDV Hoang Mai branch is too large for – the author to collect all the dataset After considering other studies, which will be discussed in chapter 3, the author concludes that the sample size of the study, 203, is statically significant
This study is conducted from March to June 2020 with the sample is collected during this period
There are some research limitations:
The study is conducted in BIDV Hoang Mai branch, which means that – the study’s results are only true for this branch, and these results may not be applied for other BIDV’s branches or other banks’ branches
The second limitation is that the sample size of this is 203, which is less than the actual number of customers in BIDV Hoang Mai branch This – might affect to the outcome of the study The study cannot reflect all customers’ opinions towards its credit services
The study is also limited by the time which is from March to June 2020 The results of the study might be true in this period, but the author cannot assure that the results can be applied in the future.
The study methodology
The study uses quantitative method with the sample size is 203 The study will conduct descriptive analysis, Cranach Alpha analysis, Exploratory Factor analysis, ANOVA analysis, correlation analysis, regression analysis to verify the model proposed by the author All analysis will be done in SPSS 20 software.
The study’s structure
The study is divided into 5 chapters:
Chapter 1: The introduction of research
Chapter 2: Literature review of factors influencing customer satisfaction
Chapter 4: Research results and analysis
LITERATURE REVIEW OF FACTORS INFLUENCING
The overview of services
Services are a common concept in marketing and business There are many ways to define a service, but according to Valarie A Zeithaml and Mary J Bitner (2000), service is the behaviours, processes and ways of performing a certain job to create value and use Satisfying customers' needs and expectations
Service is an activity or a series of activities that are more or less intangible, but are not necessary, taking place in interactions between customers and service personnel and / or physical resources or goods and / or service delivery systems are provided as solutions to customer problems (Gronroos, 1990)
Service is a process of behind-the-scenes operations and forward activities, where customers and service providers interact with each other The purpose of this interaction is to satisfy customers' needs and desires the way they expect them to, as well as to create value for customers (Bui Nguyen Hung, 2004)
Different researchers have different concepts of service, but they quite agree on a view of service characteristics Bitner et al (1993, cited by Wolak et al., 1998) summarized the key conceptions of service researchers since the 1980s that services have four key characteristics: (1) intangibility, (2) inseparability, (3) heterogeneity and (4) non-storability
Intangibility: The service has no specific shape, cannot be touched, weighed or measured in a specific way like physical tangible products When purchasing physical products, customers may require quality testing and testing before purchasing but such products and services cannot be parallel Due to the intangible nature, the service does not have a "sample" nor "trial" as physical products Only through the use of the service can customers feel and assess the quality of service properly The intangibles of services are proposed as a key feature to distinguish them from other tangible goods (Levitt, 1981) Intangibles are considered as obvious features of the service
Intangibles make it difficult for companies to perceive services and assess service quality (Robinson, 1999)
Inseparability: The inseparability of services is reflected in the simultaneous distribution and consumption of services (Regan, 1963; Wyckham et al.1975; Donnelly, 1976; Grửnroos, 1978; Zeithaml 1981; Carman and Langeard, , 1980; Zeithaml et al., 1985; Bowen 1990 and Onkvisit and Shaw 1991, citing Wolak et al., 2000) This is not true for physical goods that are manufactured in factories, distributed through intermediaries, and then consumed For goods and services, the customer only uses the product at the final stage, and for the service, the customer experiences during or part of the service creation process
Heterogeneity: This feature is also known as service differentiation
Accordingly, the service performance is often different depending on the type of service, the service provider, the consumer, the time it takes, the area of services, the objective of services and the location This feature is most evident in services that involve high labour Requiring consistent quality from employees is difficult to guarantee (Caruana & Pitt, 1997) The reason is that what the company intends to serve may be completely different from what the consumer receives Moreover, the same type of service also has many levels of performance Therefore, the assessment of the quality of a service is difficult to determine based on a standard measure, and many other relevant factors need to be put into consideration to make the precise assessment
Non-storability: The service cannot be stored, and then sold like other goods
People can see the implementation of the service but cannot take away the service and then reuse it because the when the service is done, it is over and cannot be reserved for "reuse" or "recover"
2.1.3 The definition of service quality and its assessment
Unlike tangible products, services are intangible activities, and the process of using the service is an inseparable process and the perception of service quality depends very much on individual users (Parasuraman et al., 1985; 1988) argued that customer desires for services are formed by their understanding of that service, their past experiences, word of mouth and corporate advertising Therefore, it can be seen that service quality is a match between expected expectation of service and actual service delivery to customers Because the characteristics of the service are intangible, the quality assessment depends on customers' perceptions on many aspects In other words, the quality of service is a multiple concept that covers many different aspects Parasuraman et al.,(1985) defined ten aspects of quality of service including: (1) trust; (2) responsiveness; (3) service capability; (4) access, (5) courtesy, (6) communication, (7) credibility, (8) security; (9) customer knowledge; and (10) tangible facilities
Subsequent studies have reduced these aspects on five factors (Parasuraman et al., 1988; 1991) as follows:
(1) Reliability: Ability to perform promised service dependably and accurately (2) Responsiveness: Willingness to help customers and provide prompt service (3) Assurance: Knowledge and courtesy of employees and their ability to inspire trust and confidence
(4) Empathy: Services provider’s ability to listen and address concerns of customers (5) Tangibles: Physical facilities, appearance, and equipment of personnel
Research in different areas can give different factors to evaluate service quality Gronroos (1984) proposed two factors of service quality: (1) functional quality and (2) technical quality Studies that use SERVQUAL as the basis for research in different fields can include more other factors, which are "convenience" (Seth, Momaya and Gupta, 2008; Khan, 2010), "ease of use" (Kuo et al., 2005),
"information quality" (Swaid and Wigand, 2009; Kuo et al., 2005), "service prices" (Andaleeb and Conway, 2006; Dhamalingam and Kannan, 2011), etc.
The overview of customer satisfaction
2.2.1 The definition of customer satisfaction
According to Philip Kotler (2001), customer satisfaction is the degree to which a person's emotional state stems from a comparison of results obtained from the consumption of products or services with their expectation The level of satisfaction depends on the difference between the results received and the expectation If the actual results are lower than the expectations, the customer is not satisfied, if the actual results are commensurate with the expectations, the customers will be satisfied, if the actual result is higher than expected then the customer is very satisfied The expectations of customers are formed from their past experience, from friends, colleagues and from the information of sellers and competitors To improve customer satisfaction, businesses need to make additional investments and at least invest in marketing program s.
There are many other definitions of customer satisfaction According to Oliver (1999) and Zineldin (2000), customer satisfaction is the emotional feedback or perception of customers to service providers based on comparing the difference between what they received and their previous expectations In short, customer satisfaction is the status or perception of customers towards the service provider after using the service (Levesque and McDougall, 1996) Meanwhile, Oliva et al (1995) argued that customer satisfaction is a business mission reflected in the relationship between values of such products and services compared to customers’ previous expectations about them Also, Churchill and Peter (1993) have concluded that satisfaction is also a state in which what customers need, want and expect in products and service packages are satisfied or beyond satisfaction, resulting in repeat purchase, loyalty and the value of word of mouth with delight
2.2.2 The relationship between service quality and customer satisfaction
The relationship between service quality and customer satisfaction has been the subject of ongoing discussion by researchers over the past decades Many studies of customer satisfaction in service industries have been conducted and generally conclude that service quality and satisfaction are two distinct concepts (Bitner,1990; Boulding et al., 1993) (cited from Lassar et al., 2000) Customer satisfaction is a general concept that expresses their satisfaction when consuming a service, while when talking about service quality, people often concern specific components of the service (Zeithaml & Bitner, 2000) Oliver (1993) argues that service quality affects customer satisfaction Service quality - defined by many different factors - is part of the determinant of satisfaction (Parasuraman et al., 1985, 1988) Numerous studies in various fields have demonstrated the relationship between service quality and customer satisfaction Good quality of service leads to customer satisfaction (Baksi and Parida, 2011; Seth, Momaya and Gupta, 2008; Rakesh, 2012) In this study, the two concepts of service quality and satisfaction are also understood as two different concepts Service quality focuses on evaluating the service functions provided by various aspects (factors) Customer satisfaction is assessed as separate variables influenced by aspects of service quality
2.2.3 Different models measuring customer satisfaction
In banking industry, service quality is its core competence which helps a bank gain a competitive edge over other competitors To maintain customer satisfaction with banking services, managers should identify key factors affecting customer satisfaction There are a number of researchers provides different models with different factors to measure the impacts of these factors on customer satisfaction This study will examine 4 models, which are American Customer Satisfaction Index, GAP model, SERVQUAL model and SERVPERF model.
Figure 2.2: American Customer Satisfaction Index ACSI –
Through the American satisfaction index (ACSI) model, perceived values are influenced by perceived quality and customer expectations At the same time, customer expectations have a direct impact on the perceived quality In fact, the higher the expectation, the higher the perceived quality of a customer or product will be, or vice versa Therefore, the requirements for the quality of products and services provided to customers need to be guaranteed and satisfied on the basis of their satisfaction Customer satisfaction is formed on the basis of perceived quality, customer expectation and perceived value If the perceived quality and perceived value is higher than the expectation, it will create loyalty to customers, otherwise, it generates a complaint about the products they consume
Gap model which is developed by Parasuraman et al (1985) has been widely applied in the fields of banking services, restaurants, hotels, hospitals, schools, aviation, etc
The model shows 5 main gaps related to perceptions of service quality management and related jobs distributing services to customers Those gaps are the gaps between customers' expectations and their perception of the service, called satisfaction Based on this difference, customers will be satisfied or dissatisfied about the service they receive
Gap 1 appears when there is a difference between customer expectations about service quality and a service provider's perception of customer expectations The key to this difference is that service providers do not fully understand what makes the service quality and how to deliver it to customers to satisfy their needs
Management perceptions of the consumer expectations Translation of perceptions into service quality specifications Service delivery (including pre and past contacts) Personal needs
Past experience Words of mouth communication
External communications to the consumer GAP 1
Gap 2 appears when service providers have difficulty translating their customers' perceptions of expectations into quality characteristics The main cause of this problem is the professional competence of the service staff as well as the level of fluctuations in service demand There are times when demand for services is too high to keep up with suppliers
Gap 3 appears when the service personnel do not deliver services to the customers according to the defined criteria The role of a direct teller is very important in creating service quality
Gap 4 relates to advertising facilities and information Promises in advertising programs and promotions can increase customer expectations but will also reduce the quality that customers feel when they are not fulfilled according to what was promised
Gap 5 appears when there is a difference between the quality expected by the customer and the quality received Service quality depends on this 5th distance Once customers realize that there is no difference between the expected quality and the perceived quality when using a service, the quality of the service is considered perfect
Taking the theoretical idea in the model of Gronroos (1984), Parasuraman (1985) has built a mixed measurement tool, called SERVQUAL, to measure
Tangibles Expected service Perceived service
Perceived service quality perceived service quality SERVQUAL contains 22 pair of Likert-scale items to separately measure customer expectations and realistic perceptions of service quality Quality of service = Level of perception - Expected value
This is one of the commonly used models to evaluate service quality in many different fields The SERVQUAL model has 10 components: (1) trust; (2) responsiveness; (3) service capability; (4) access, (5) courtesy, (6) communication, (7) credibility, (8) security; (9) customer knowledge; and (10) tangible facilities
By 1988, Parasuraman et al adjusted the remaining 5 components: (1) Reliability, (2) Responsiveness, (3) Empathy, (4) Assurances and (5) Tangibles This is the most popular service quality research model, which is applied most in marketing research According to Parasuraman, the quality of service cannot be determined in general, but depends on the perception of customers about the service and this perception is considered on many factors
Based on Parasuraman's SERVQUAL model, Cronin and Taylor (1992) released SERVPERF, a variant of SERVQUAL According to SERVPERF model: Service quality = Sensitivity level
This conclusion has been supported by the studies of Lee et al (2000); Brady et al (2002) SERVPERF model also uses 22 similar questions as the customer experience in the SERVQUAL model, ignoring the expectation question Like SERVQUAL model, the model also considers 5 factors: tangibles, reliability, responsiveness, assurance and empathy when assess customer experience to a service.
The overview of credit services in banking industry
2.3.1 The definition of credit services
Credit is one of the most important activity of financial institutions Credit is of paramount importance for the development of a bank as the main revenue of banks comes from credit services Credit activity is considered to be a method of transferring funds (capital) from the lender to the borrower For example, fund is transferred from the savings surplus entity to the savings shortage subject
For specific financial relations, credit is a transaction of assets on the basis of a repayment between the two entities The most common is transactions between banks and other financial institutions, between businesses and individuals in the form of loans Banks provide loans to borrowers and after a certain amount of time, the borrower must pay principal and interest
Credit also means an amount of money that financial institutions provide to customers (loans) Credit is thus understood as a transaction of the property (money or goods) between the lender (banks and financial institutions) in which the lender transfers assets to the borrower in the agreed term, the borrower shall be responsible for paying the principal and interest to the lender upon its due date In Vietnam, according to the Law on Credit Institutions of the Socialist Republic of Vietnam, Article 49 record: “Credit institutions are granted credit to organizations, individuals in the forms of lending, discounting commercial papers and other valuable papers, guarantees, financial leasing and other forms as prescribe to the State Bank of Vietnam
Credit activity is the main activity of commercial banks, deciding the existence and development of a bank Nowadays, banks have developed many other activities like international payment, mobile banking, or internet banking but credit activities are always the basic activity and account for a large proportion in all activities of commercial banks Credit activities are considered to be the main source of income for commercial banks In the national economy, fund/capital is a very important factor for the operation and activity of individual and organization When the need for capital is meet, these economic entities can easily implement investment and production plans, thus pushing the economy On the contrary, the lack of capital will significantly affect production and business activities Banking credit activities will raise idle capital in all economic sectors, then to provide fund for organizations, businesses and individuals, contributing to the expansion of production and business With the function of receiving deposits and lending, the presence of commercial banks with credit activities is considered as a bridge between those with excessive and idle capital and those lacking of capital Thanks to banking credit activities, capital is turned over continuously This will not only increase the bank revenue, which comes from interest rates but it also promotes economic growth of the whole society Banks provide fund for development projects of various sectors in the economy, which accelerate the pace of economic growth, thereby restructure the economy rationally and thoroughly
For import-export activities and other international trades, bank credit is a means of linking countries' economy through transnational capital investment Buying and selling goods becomes much faster and more convenient with the advent of credit activity Therefore, Bank credit will contribute to the development of economic relations with foreign countries.
A review of recent studies of customer satisfaction in banking industry
No Author Research Factors affecting customer satisfaction
1 Mei Mei Lau et al (2013)
Measuring service quality in the banking industry: A Hong Kong based study
Tangibility, Responsiveness, Assurance, Empathy, Reliability
Service Quality Delivery and Its Impact on Customer Satisfaction in the Banking Sector in Malaysia
Tangibility, Responsiveness, Assurance, Empathy, Reliability
Bank Service Quality, Customer Satisfaction and Loyalty in Ethiopian Banking Sector
Tangibility, Responsiveness, Assurance, Empathy, Reliability
Factors influencing customer satisfaction in the retail banking sector in Pakistan
Tangibility, Responsiveness, Assurance, Empathy, Reliability
Customer perception on service quality of new private sector banking in Tamil Nadu
Tangibility, Responsiveness, Assurance, Empathy, Reliability,
Accessibility, Security, Price, Product Variety
Interrelations between Service Quality Attributes, Customer Satisfaction and Customer Loyalty in the Retail Banking Sector in Bangladesh
Tangibility, Responsiveness, Assurance, Empathy, Reliability
Source: Prepared by the researcher
In this study, the author will review 6 other studies, which measure customer satisfaction in banking industry Firstly, the study of Mei Mei Lou and partners, which was conducted in 2013, measured service quality in the banking industry in Hongkong In the study, Mei Mei Lou used the SERVQUAL model with 5 dimensions, Tangibility, Responsiveness, Assurance, Empathy, and Reliability to measure customer satisfaction then customer loyalty The study’s regression model was 0.288 * Tangibility + 0.234 * Responsiveness + 0.229 * Reliability + 0.293 * Assurance + 0.157 * Empathy The author concluded that all 5 dimensions has been successfully proved to have positive impacts on customer satisfaction, and Assurance was the most influential effect on customer satisfaction The next study was Service Quality Delivery and Its Impact on Customer Satisfaction in the Banking Sector in Malaysia (Jayaraman Munusamy et al., 2010) This study also used SERVQUAL model to measure customer satisfaction The study model was 0.621* Tangibility + 0.117 * Reliability + 0.109 * Responsiveness + 0.662 * Assurance + 0.093 * Empathy Jayaraman Munusamy et al concluded that responsiveness impacted customer satisfaction the most The study of Shanka conducted in 2012, which measured Bank Service Quality, Customer Satisfaction and Loyalty in Ethiopian Banking Sector, used the same model, SERVQUAL with 5 dimensions The research showed that empathy and responsiveness have the highest impact on customer satisfaction, followed by tangibility, assurance, and reliability The study Factors influencing customer satisfaction in the retail banking sector in Pakistan (Ahmad Jamal and Kamal Naser, 2003) proved that there was a positive relationship between service quality and customer satisfaction However, the author also proved that tangible aspects of the service environment has no impact on customer satisfaction Customer perception on service quality of new private sector banking in Tamil Nadu, conducted in 2011 by Dharmalingam and Kannan, concluded that the result indicates that customers’ perception is most influenced by tangibility and least influenced by Product Variety The research Interrelations between Service Quality Attributes, Customer Satisfaction and Customer Loyalty in the Retail Banking Sector in Bangladesh (Siddiqi, 2011), showed that all the service quality elements had positively impact to customer satisfaction, and customer satisfaction had a positive relationship with customer loyalty in the retail banking in Bangladesh Empathy has the highest impact on customer satisfaction and tangibility shows the least impact on customer satisfaction.
Factors influencing customer satisfaction in banking industry
In this study, the author only focuses on 5 factors, which is tangibility, reliability, assurance, empathy and responsiveness to measure the customer satisfaction Those five factors have been confirmed its importance through the review of recent studies in banking industry, discussed in chapter 2.4
Tangibles is defined as the appearance of equipment, facilities, and materials which are utilized to deliver products and services to the customers (Parasuraman and Zeithaml, 1988) Many researchers have used tangible factors in their regression model to assess customer satisfaction For example, as discussed above, the study of Mei Mei Lau et al., 2013; Jayaraman Munusamy et al., 2010; Shanka, 2012; Ahmad Jamal and Kamal Naser, 2003 used SERVQUAL model and they proved that tangibles have positive impact on customer satisfaction According to Parasuraman (1994), tangibles are measured through questions factors like modern equipment, visually appealing facilities, employees with neat and professional appearance, visually appealing materials associated with services
Reliability is defined as the ability to handle customers’ problems, to deliver products and services right at the first time, and to maintain error-free during the delivery process (Parasuraman and Zeithaml, 1988) Reliability has always been an important factor in measuring customer satisfaction and it is used by many researchers According to Parasuraman, reliability is assessed through factors such as the ability to provide services as promised, the dependability in handling customer’s service problems, the ability to perform services right, the ability to provide services as the promised time and the ability to maintain error free records
Responsiveness is defined as the willingness to help customers and provide prompt services (Parasuraman, 1988) Many studies used these factors to measure customer satisfaction, and it is proved many times to have a positive impact on customer satisfaction For example, the study Service Quality Delivery and Its Impact on Customer Satisfaction in the Banking Sector in Malaysia (Jayaraman Munusamy et al., 2010) proved that responsiveness has the highest impact on customer satisfaction According to Parasuraman, responsiveness can be assessed by factors like the willingness to help customers, the readiness to respond to customers’ enquiries, prompt service to customers, the ability to keep customer informed about the services will be performed
Assurance is defined as the knowledge and courtesy of employees and their ability to inspire trust and confidence (Parasuraman, 1988) Many researchers have proved that assurance has a positive relationship with customer satisfaction The study Service Quality Delivery and Its Impact on Customer Satisfaction in the
Banking Sector in Malaysia (Jayaraman Munusamy et al 2010) has proved that , assurance has the highest impact on customer satisfaction According to Parasuraman, assurance can be assessed through factors like the ability of employees to instill trust and confidence to customers, the ability to make customer feel safe in their transaction, courteous employees, and employees with knowledge to answer customer questions
Empathy is defined as caring, individualized attention the firm provides to its customers (Parasuraman, 1988) Empathy has been proved that it has a positive impact on customer satisfaction According to Parasuraman, empathy can be measured through factors like the ability to give customer individual attention, employees who care customers, understanding the customer’s need, convenient business hour.
RESEARCH METHODOLOGY
Research approach
There are two choice of research approach, which are deductive and inductive approach Depending on the scientific issues to be studied, we need to decide whether deductive or inductive processes should be used
The deductive approach begins with existing scientific theories, also known as foundation theories, to formulate hypotheses to answer research questions and to use data collected to test these hypotheses (Collis and Hussey, 2003) Inductive process goes in the opposite direction of the deductive process This process begins by observing scientific phenomena to build a pattern that explains these scientific theories (Robson, 2002)
This study aims to test the hypothesis that the relationship between customer satisfactions is affected by five factors of service quality based on SERVQUAL model Therefore, it is appropriate to choose deductive approach in this study.
The process of the research
Base on a deductive approach discussed above, the research process is illustrated as below:
Source: Prepared by the researcher
Identify objectives Literature review Preliminary questionnaire Pilot study Official survey and data collection Quantitative data analysis Discussion Conclusion & Recommendations
The first step of the research is to identify the objectives, the researcher will collect and then examine the literatures related to the study’s topic to answer the research question The third step of the process is to design the preliminary questionnaire based on chosen model Then the preliminary will be done in pilot study to verify the content quality of the questionnaire Pilot study is conducted through two methods: qualitative research and quantitative research The purpose of qualitative research is to explore factors affecting service quality as well as customer satisfaction to adjust and supplement the scale to suit the specific characteristics of BIDV - Hoang Mai branch In the previous step, the scales are built into the research model and the questionnaire is established Qualitative pilot research is conducted through group discussion with banking experts, department leaders and about 20-30 loyal customers with BIDV Hoang Mai credit service The result of pilot study is – to develop an official interview questionnaire for official research After conducting qualitative research, 5 factors of customer satisfaction research model are agreed and can be used for the next study, official quantitative research The fifth step is that the questionnaire is officially implemented and the answers of the respondents are collected back The official study is conducted by a quantitative research method as soon as the questionnaire was adjusted from the preliminary research results This study surveys customers directly and indirectly (through Google platform) to collect survey data Subjects of the survey are customers of BIDV Hoang Mai who have – used the credit services in BIDV Hoang Mai branch The sixth step is to analyse – collected data, and the seventh step is to discuss about the findings Finally, this research concludes and summarize the analysed results in the sixth and seventh step Also, the research will make recommendations for further improvement on customer satisfaction towards credit services.
Research method
This research uses quantita ve method, which is based on the objective system ti of thought and often following deductive processes This is totally reasonable as the research use deductive process Quantitative method considers that scientific research is the test of scientific theories (hypotheses), and the theories are deducted from theory In other words, the quantitative method tests scientific theories to see if it is consistent with real market data The objective of this study is to identify factors influencing customer satisfaction of credit services Therefore, the choice to use quantitative method is appropriate as quantitative method can allow the researcher to analyse the relationships between independent variables (tangibles, reliability, empathy, assurance, and responsiveness) to dependent variables (customer satisfaction) In this research, the author uses SPSS 20 software to conduct quantitative analysis.
Research strategy
Nguyen Dinh Tho (2011) stressed that there are several research strategies, such as face to face interview, telephone interview, mail, examination, case study, etc This study uses survey method, which is conducted through Google platform to collect data The author chooses survey strategy because it follows the theory the deductive method Survey techniques require the researcher to construct a questionnaire, and the researcher can gather adequate data for interpretation and produce conclusions The survey also allows the researcher gather data from large populations, which does not involve data collection from the whole community when preserving data accuracy.
Research model and research hypotheses
SERVQUAL model has quickly become the most popular model for measuring service quality in various fields such as retail (Parasuraman et al., 1988, Bala et al., 2011; Duvasula and Lysonski, 2010), banking (Baksi and Parida, 2011; Mohammad and Alhamadani, 2011; Malik et al., 2011; Ravichandran et al., 2010; Dharmalingam and Kannan, 2011; Hanzaee and Nasimi, 2012; Tahir and Bakar, 2007; Javadi, 2012; Rakesh, 2012; Cronin and Taylor, 1992; Zhu et al., 2002), telecommunications (Seth, Momaya and Gupta, 2008; Khan, 2010; Loke et al., 2011; Zekiri, 2011), education (Stodnick and Rogers, 2008; Hasan et al., 2008; Hanaysha et al., 2011 ; Oliveira, 2009; Miller and Brooks, 2010), information system services (Kettinger and Lee, 1994), education services (Pariseau and McDaniel, 1997), healthcare and hospital services (Lam, 1997; Babakus and Mangold, 1989)
Regarding to banking services, many researchers use 5 factors: tangibles, reliability, responsiveness, assurance, and empathy to examine customer satisfaction
For example, Siddiqui (2010) confirmed that these factors have a positive impact on customer satisfaction Many other researchers such as Mei Mei Lau et al (2013); Jayaraman Munusamy et al (2010); Shanka (2012); Ahmad Jamal and Kamal Naser (2003); Dharmalin gam and Kannan (2011) also use SERVQUAL model with 5 dimensions - tangibility, responsiveness, reliability, assurance, empathy to assess the level of customer satisfaction, and the results confirmed that these 5 factors had positive impacts on customer satisfaction
Based on information discussed above, the thesis uses SERVQUAL model of Parasuraman (1988) to measure the customer satisfaction towards credit services at BIDV – Hoang Mai branch
Following the qualitative research results (pilot study), the discussion group members including customers, managers and employees at BIDV Hoang Mai – branch also said that the five factors that the author mentioned during the discussion were sufficient to measure customer satisfaction towards the quality of credit services at BIDV Hoang Mai branch –
Through theoretical basis stated and qualitative research results The research model proposed by the author includes 05 independent variables: (1) Tangibility, (2) Responsiveness, (3) Assurance, (4) Empathy, (5) Reliability, and dependent variables is customer satisfaction
Figure 3.2: Model of customer satisfaction
Source: Prepared by the researcher
Then, research hypotheses are proposed as below:
H1: Tangibility positively impacts on customer satisfaction towards credit services of BIDV – Hoang Mai branch
There are many studies that highlight the importance of tangibles to customer satisfaction in banking industry For example, the studies of Munusamy et al., (2010); Molae et al., (2013); Cirpin, (2014), Jabnoun and Al-Tamimi (2003), Zineldin (2005) Swar and Sahoo, (2002); Vu Thai Hoa, (2013) Shanka, (2012); Ahmad Jamal and Kamal Naser (2003); Dharmalin gam and Kannan (2011) concluded that tangible variables have positive impacts on customer satisfaction
In the study of Munusamy et al (2010) which measure customer satisfaction towards banking service, tangible variables have the highest influence on customer satisfaction compared to reliability, responsiveness, empathy and assurance This result is consistent with the results of Molae et al (2013) and Cirpin (2014) Therefore, in this study, the researcher wants to verify this hypothesis:
H2: Reliability positively impacts on customer satisfaction towards credit services of BIDV – Hoang Mai branch
Reliability is defined as the firms’ capabilities to address customers’ concerns, to deliver products and services right at the first time, and to ensure that the delivery process have no mistake (Parasuraman and Zeithaml, 1988) There are many empirical evidences confirming that reliability has positive correlation with customer satisfaction in banking industry (Arfin, 2012; Saghier and Nathan, 2013; Al-Azzam, 2015)
A study of Arfin (2012) conducted to measure the quality of customer service in banking industry in Bangladesh showed that reliability is the most influential impact on customer satisfaction In 2013, Saghier and Nathan shared the same results
H3: Responsiveness positively impacts on customer satisfaction towards credit services of BIDV - Hoang Mai branch
Responsiveness is defined as the employees’ capabilities to deliver products and services to the customers with the willingness and readiness (Parasuraman and Zeithaml, 1988) There are many studies proving that responsiveness and customer satisfaction in banking industry has a positive relationship (Appannan et al., 2013;
Rizwan et al., 2014; Cheserek et al., 2015; Vu Thai Hoa, 2013; Ahmad Jamal and Kamal Naser, 2003; Dharmalin gam and Kannan, 2011)
H4: Assurance positively impacts on customer satisfaction towards credit services of BIDV - Hoang Mai branch
Assurance is defined as the courtesy and the knowledge of the employees and how they can inspire their customers and increase customer trust (Parasuraman and Zeithaml, 1988) Assurance affect positively on customer satisfaction in banking industry (San et al., 2013; Lau et al., 2013; Phan and Nham, 2015) The role of assurance to customer satisfaction is important as other service quality factors and it is confirmed by Parasuraman et al (1988) On the other hand, customer satisfaction is increased when assurance comes along with services According to Vu Thai Hoa (2013), customer satisfaction is improved significantly when the employees of the firms bring high trustworthy to their customers The next hypothesis is then proposed
H5: Empathy positively impacts on customer satisfaction towards credit services of BIDV - Hoang Mai branch
Empathy is defined as how the firms and the employees care and give individual attention to their customers (Parasuraman and Zeithaml, 1988) The impact of empathy on customer satisfaction is found in many studies (Munusamy et al., 2010; Molae et al., 2013; Cirpin, 2014, Jabnoun and Al-Tamimi, 2003; Zineldin, 2005; Swar and Sahoo, 2002; Vu Thai Hoa, 2013) As confirmed by Vu Thai Hoa (2013), empathy and customer satisfaction have significant and positive relationship with each other The study of Al-Marri et al (2007) highlights that customer dissatisfaction happens when empathy level of the services not is maintained well When measure impacts of Service Quality on Customer Satisfaction and Customer Loyalty, Mubbsher Munawar Khan (2014) identifies that empathy plays the most important role, and higher empathy leads to higher customer retention and later is customer satisfaction.
Data collection
In this study, primary data is collected through survey both offline and online The survey is sent to customers, internal employees and managers, who have used and experienced credit services at BIDV - Hoang Mai branch via emails Also, the survey was printed into hard copy and sent directly to customers who use credit services at BIDV - Hoang Mai branch The researcher estimates that there are around 50-100 customers going to BIDV Hoang Mai branch every day, and about 5 – customers answers the questionnaires The answers or any feedbacks will be collected and transferred to Microsoft excel, then re-entered on SPSS 20 software for statistical analysis
The researcher makes questionnaires based mainly on Parasuraman (1991) and related satisfaction studies, then edits the questionnaire based on customer opinions by interviewing and consulting with BIDV managers (pilot study) The researcher conducted interviews with about 20 customers, employees or managers to verify the quality of the questionnaires Official survey then is implemented after pilot is done Then the researcher chooses sample size and the method, which is discussed in more details in the chapter 3.8, to deliver the questionnaire to respondents
Secondary data is collected from many sources such as books, news and magazine and the Internet The data is about customer satisfaction with banking products and services from other researchers
Each information extracted from books and journals are cited clearly in the reference Using secondary data allows the researcher to verify the findings from primary data and compare the author ‘results with other researchers.
Questionnaire development
Firstly, the questionnaire is developed to know more about demographic patterns of BIDV - Hoang Mai customers Some demographic variables are gender, age, jobs, monthly income, type of credit services, and time of using credit services from the respondents
26-30 years old 31-35 years old 36-40 years old 41-45 years old 46-50 years old More than 50 years old
Businessman/woman Office workers State employees Students Others
Less than 10 VND million 10-15 VND million 15-20 VND million More than 20 VND million
Auto loan Home loan Business loan Unsecured loan Credit card
Time of using credit services
Less than 1 year 1-3 years 3-5 years More than 5 years
Source: Prepared by the researcher
After demographic variables are made, the questionnaires include questions which are utilized to evaluate customer satisfaction The questions were developed in the pilot study with the interview with experts, managers, employees and customers of BIDV Hoang Mai branch In addition, the author also refers 22 questions of – SERVQUAL model developed by Parasuraman in 1988 as a main source of this study’s questions
The bank has up-to-date equipment TAN1 Parasuraman,
1988 The physical facilities at the bank are modern
Materials associated with the bank (such as website, brochure) are appealing
Employees at the bank have professional looking
Customers can feel safe and secure during the transaction process
Bank performs the service as promised
Bank employees provide customers with accurate and complete information in time
Banking systems are working consistently
Bank employees are willing to answer any questions or concern of customers
Bank employees are willing to address customers’ problems or concerns
ATMs are installed at convenient places for customers to make transactions
ATMs are working efficiently and effectively (Have enough cash for customers’ demands, free from errors )
The Bank provides a variety of services to meet customer’s demand
The behaviour of employees in the bank instils confidence in you
You feel safe in your transactions ASS2
Employees in the bank are honest with customers
Bank provides individual attention to customers (Remember customer’s birthday, actively inform customers about discounts.)
The operating hours of bank is convenient for the customers
Bank employees understand the specific needs of their customers
Overall, I am satisfied with the bank SAS1
I will use your credit services again SAS2
I will recommend for my friends about the service
Source: Prepared by the researcher
The researcher uses a Likert scale of 5 points to measure customers satisfaction towards credit services This scale is named after its creator - American social scientist, Rensis Likert This scale is becoming increasingly popular for surveys because it is one of the most reliable scales for measuring opinions, perceptions and behaviours This scale has 5 points and it demonstrates the level of agreement of customers In more detail, score of 1 and 2 means the respondents strongly disagree and disagree with the author’s statements, score of 3 indicates neutral position of respondents, and score of 4 and score of 5 means the respondents agree and strongly agree with the author The objective of using Likert scale of 5 points is to quantify the impact of each factor on customer satisfaction.
Sampling
There are many different researchers with different rules of determining the sample size The sample size depends on the analytical method This study uses exploratory factor analysis (EFA) so factor analysis should analyse a sample of at least 200 observations (Gorsuch, 1983) Hachter (1994) suggested that the sample size needed to be at least 5 times larger than the observed variable Other researcher shared the same idea that the sample size for factor analysis are usually at least 4 or
5 times the number of variables (Hoang Trong and Chu Nguyen Mong Ngoc, 2005) According to the experience rule of Nguyen Dinh Tho (2011), the number of observations is 5 times greater than (at least) the number of variables, the best is 10 times Thus, with 22 observed variables, the study needs to survey about 110 220 – samples to achieve the sample size needed for EFA analysis In addition, according to Tabachnick & Fidell (1991) for regression analysis to achieve the best results, the sample size must satisfy the formul a:
The sample size of this study is 203 This number meets sample size requirement proposed by above-mentioned author and totally suitable for quantitative analysis
In addition to choosing the sample size for the official survey of questionnaire, the researcher also chooses the sample size for pilot study The researcher conducts pilot survey in order to evaluate the content quality of the questionnaire To do that a sample of 20 people who are the customers, department leaders or employees of BIDV – Hoang Mai branch are invited for pilot study
The sample is non-random chose (non-probability sampling) In more detail, the researcher uses convenience method The convenience method is based on the accessibility of the respondent, which the researcher can easily survey In this case, the time of this study is limited, so using convenience method is appropriate.
Data analysis techniques
The first data analysis is descriptive statistics which include frequency and mean value analysis Frequency analysis is generated for each demographic variable and it helps the researcher to understand about demographic characteristics of the respondents For example, frequency analysis of income provides the income structure of the respondents and therefore the researcher understands how much the customers of BIDV – Hoang Mai branch earn
Mean value analysis is generated from the dataset of the respondents’ evaluation This analysis utilizes Likert scale of 5 points to recognize the level of agreement or the level of disagreement of the respondents In this study, the author assumes that the mean value of variables will be compared to specific value If the mean score ranges from 0.01 to 1.00, then the respondents strongly disagree with the author If the mean score is from 1.01 to 2.00, the respondents disagree with the author If the mean value is 2.01 to 3.00, the respondents is in neutral position If the mean score is greater than 2.01 and smaller than 3.00, it means that the respondents is neutral about the author’s statement If the mean value is greater than 3.01 and smaller than 4.00, the respondents share the same opinions with the author If the mean score is 4.01 to 5.00, the respondents strongly agree the author’s statements Moreover, mean value analysis provides standard deviation of each variable, and the higher standard deviation, the higher difference in the answers among the respondents If standard deviation value of a variable is less than 1.0, the answers of the respondents towards this variable is more reliable and trusted If the standard deviation value of a variable is greater than 1.0, answers towards a variable are not really reliable
Cronbach’s Alpha test is a test to analyze and evaluate the reliability of variables The total variable correlation coefficient indicates the level of “linking” between one observed variable in the factor and the other It reflects the contribution of a variable to a factor The criteria for assessing whether a variable really contributes to the factor or not is that the total correlation coefficient must be greater than 0.3 The value of the contribution is reflected by the total correlation coefficient
It allows the researcher to eliminate inappropriate variables in the research model
A scale is considered valid when all of the following criteria are met:
The alpha coefficient of the scale is within [0.6; 0.9) (1) (Nunally and Burstein, 1994)
The correlation coefficient of component variables with the total variable must be greater than 0.3 (2) (Nunally and Burstein, 1994)
Removing any component variable does not increase the reliability of the scale (3) (Vaus, 2004)
In the process of implementing this technique, if encountering component variables that violate the standards (2) and (3), the author remove each component variable in the order of priority, and run the test again until the standards are met If alpha is below 0.6, it means that this scale is not acceptable This scale will not be used for the next step
If a variable violates the standard (3) but not too serious, and this is a new and important variable, it can still be considered to retain The final decision rests with the researcher
After the variables’ reliability are tested its, the next step of analysis is Explanatory Factor Analysis or EFA Explanatory Factor Analysis will help the researcher identify a more significant set of observed variables from the previous data set It will help to reduce the number of observations to a small number of variables From there the author can easily consider each relationship between factors (calculated as representative variables if necessary) There are 6 criteria need to be satisfied when analysing EFA as below:
Factor loading values are greater than 0.5 (1) (Hair et al., 1998)
Differentiated factors loading values meaning that factor loading – values are greater than 0.5, and those factors are uploaded only for a single variable If two factor loading values are uploaded on a variable and the difference between 2 factor loading is smaller than 0.3, we delete the variable and run the EFA test again If the difference of 2 factor loading values if great than 0.3, we keep the variable (2) (Nguyen Dinh Tho, 2011) so when we choose to display only factor loading greater than 0.5 in the matrix, invalid variables will not display load factors To check whether the standard difference of load factors for 2 groups is greater than 0.3 or not, we should consider displaying coefficients of load factors greater than 0.3 on the SPSS 20 software
KMO coefficient (Kaiser-Meyer-Olkin) is the index used to consider the appropriateness of the sample size when analysing factors The larger the KMO value, the more appropriate the factor analysis sample size Criterion: 0.5 ≤ KMO ≤ 1 (3) (Hoang Trong and Chu Nguyen Mong Ngoc, 2007)
Bartlett's test has statistical significance (Sig 0.05, there is no difference in the sub-group of demographic variables If sig < 0.05, there is a difference in the groups of demographic variables
The next analysis is the correlation coefficient analysis It helps the author check the correlation between independent variables and dependent variables before running regression model The variables represented for each factor are made by using arithmetic mean Because one of the conditions required for regression analysis is that the independent variable must be correlated with the dependent variable If in this correlation analysis, the independent variable is not correlated with the dependent variable, the author then removes the independent variable out of regression analysis The Sig number in correlation analysis should be 5%, 2 variables is not correlated
Finally, the author conducts a multiple linear regression to analyse the relationship between customer satisfaction and its factors The author uses SPSS 20 to run a linear regression model In this study, the author only focuses on 3 results represented by SPSS 20 The first result needs to be considered is Adjusted R which is presented in Model Summary table Adjusted R is used to assess the appropriateness of the multivariate regression model The higher of Adjusted R, the more appropriateness of the model (Nguyen Dinh Tho, 2011) The suitable result for Adjusted R for this study is > 0.5 Secondly, the author tests the hypothesis that whether the model is statistically significant According to Nguyen Dinh Tho, the model is statistically significant when Sig < 5%, proving that the hypothesis is true Thirdly, the relationship between customer satisfaction and its factors is demonstrated through standardized coefficients or Beta The higher the Beta, the more this factor impacts customer satisfaction When p-value of T-Test (sig) is 10, we can say that there is a multi-collinearity in the model (Hoang Trong and Chu Nguyen Mong Ngoc, 2005; Hair et al., 2006) So VIF 50%: accepted It can be said that these five factors explain 69.469%> of the data variability
The first component has initial eigenvalue of 3.546 and % of variance is 18.662% The second component has initial eigenvalue of 3.386 and % of variance is 17.819% The third component has initial eigenvalue of 2.673 and % of variance is 14.607% The fourth component has initial eigenvalue of 2.119 and % of variance is 11.153% The last component has initial eigenvalue of 1.476 and % of variance is 7.767%
Source: Prepared by the researcher
Factor loading values are greater than 0.5, which is accepted for EFA analysis The first component has 4 tangible variables The second component has 5 responsive
ASS1 0,864 variables The third component includes 4 reliable factors The fourth component includes 3 variables of empathy factors The fifth component has 3 assurance factors There are no cases in which both factors are upload in a variable This ensures the convergence and differentiation when analysing EFA After factor analysis, these independent factors remain the same, without being added or reduced.
ANOVA test
4.4.1 Independent sample T test for gender variables
Source: Prepared by the researcher
Sig value of Levene's Test for Equality of Variances = 0.09> 0.05, this proves that the variance between the two groups is homogeneous Sig value of t-test for Equality of Means = 0.641> 0.05, proving that there is no difference in satisfaction between the gender
T-test for Equality of Means
95% Confidence Interval of the Difference Lower Upper Equal variances assumed
4.4.2 Oneway ANOVA test for jobs
Table 4.18: Test of Homogeneity of Variances for jobs
Levene Statistic Df1 df2 Sig
Source: Prepared by the researcher
The Sig value of Levene Statistic is 0,167 > 0, 05, proving that the variances between different job groups is equal
Table 4.19 ANOVA test for jobs :
Source: Prepared by the researcher
The Sig value in ANOVA test is 0,410 > 0, 05 This means that there is no difference in satisfaction between the job groups
4.4.3 Oneway ANOVA test for ages
Table 4.20: Test of Homogeneity of Variances for ages
Levene Statistic df1 df2 Sig
Source: Prepared by the researcher
The Sig value in Levene Statistic is 0,004 0,05, proving that the variances between different income groups is equal
Table 4.23 ANOVA test for income :
Source: Prepared by the researcher
The Sig values in ANOVA test is 0,045 < 0,05, proving that there might be a difference in satisfaction between different income group Therefore, the author must run a post hoc test Multiple Comparison to check whether there is a difference in evaluation between each group age
Table 4.24: Multiple Comparisons for income
Source: Prepared by the researcher
From the Multiple comparison test, sig values are smaller than 0,05, proving that the satisfaction evaluation between each income group is the same
4.4.5 Oneway ANOVA test for time of using
Table 4.25: Test of Homogeneity of Variances for time
Source: Prepared by the researcher
The sig values in Levene Statistic test is 0,004, which is smaller than 0, 05 This means that there might be a difference in the variances between different times using group
The author then run a multiple comparison test to check whether there is a difference in the assessment of people with different time of using services
Table 4.26: Multiple Comparisons for time
Source: Prepared by the researcher
From the table, all sig values are greater than 0, 05 This proves that people with different time of using credit services do not have different assessment towards satisfaction.
Correlation analysis
TAN REL RES ASS EMP SAT
** Correlation is significant at the 0.01 level (2-tailed).
Source: Prepared by the researcher
One condition before running a multiple regression analysis is that dependent variables (satisfaction) must be correlated with independent variables (tangibles, reliability, empathy, responsiveness, and assurance)
From the table above, Sig values (2-tailed) of Satisfaction with each independent variable are 0,000 This means that satisfaction is correlated with tangible, empathy, reliable, responsive and assurance variables.
Multiple regression model
Table 4.28: Results of regression analysis
Source: Prepared by the researcher
From the table 4.27, adjusted R square is 0,540 (54%) This shows that independent variable explains for 54% of variance of customer satisfaction variable The regression coefficients in the model are statistically significant because the p- value of the t statistic is