Khóa luận tốt nghiệp: Relationship quality between individual customers and joint stock commercial bank - Tan Dinh Branch

General objective Based on related theoretical foundations, the author studies the quality of relationships between individual customers and the Joint Stock Commercial Bank for Foreign

INTRODUCTION

Research statement

The thesis has systematized the theoretical basis for factors affecting the quality of relationships between customers and banks in the industry From there, propose solutions to improve customer loyalty, retain old customers, attract new customers, and increase revenue and profits On the other hand, this topic has practical significance in researching and developing the relationship between individual customers and the bank as follows:

- Evaluate the current situation of banking service managers and businesses to grasp the components that impact the quality of the relationship between customers and the bank

- Research results help banks better focus on planning to improve and enhance the bank's service style and have motivational policies for banks to improve service quality and bring profits to branches, adjusting the scale of the relationship between customers and the bank in the environment in Vietnam

- The thesis will be a reference to help develop the relationship between individual customers and banks more effectively.

Aims of the study

Based on related theoretical foundations, the author studies the quality of relationships between individual customers and the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh Branch From there, based on the research results, the author will propose some appropriate recommendations for bank administrators to improve the quality of the relationship between individual customers and the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh Branch

To achieve the above general goal, the author carries out three specific goals as follows:

Firstly, the study identifies factors affecting the relationship quality between individual customers and the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch

Secondly, the thesis measures the level and direction of factors that determine the quality of the relationship between individual customers the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch based on quantitative analysis models

Thirdly, the author proposes appropriate recommendations to improve the quality of the relationship between individual customers and the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch in the coming time.

Research questions

Question 1: What are the decisive factors affecting the relationship quality between individual customers and the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch?

Question 2: What factors impact the relationship quality between individual customers and the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh Branch?

Question 3: What recommendations are given to improve the relationship quality between individual customers the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh Branch?

The scope of the study

Regarding space: the author uses data from customers of the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh Branch in Ho Chi Minh City, Vietnam, to analyze the relationship quality between individual customers and the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh Branch

Regarding time: data for this study was collected from customers of the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch in 2024 The actual survey time is from April to May 2024

Research data and methodology

To address the research objectives, this study uses quantitative and qualitative research methods

Regarding quantitative research methods, the author will collect primary data on customers of the Joint Stock Commercial Bank for Foreign Trade of Vietnam, such as the Tan Dinh branch in Ho Chi Minh City, Vietnam, in 2024

Regarding time: data for this study was collected from customers of the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh Branch from 2021-

2023 The actual survey time is from April to May 2024

Qualitative research method: Research collects information and theoretical basis from various sources such as reports, research topics, textbooks and other related documents

Quantitative research method: The study used the SPSS 20 tool to analyze the scale's reliability through Cronbach Alpha coefficient, EFA exploratory factor analysis, correlation analysis and multiple regression analysis.

Research structure

The study is structured in five main parts:

Chapter 1: Introduction In this chapter, the author presents the reason for choosing the topic, goals, tasks, scope, and research objects of the topic, as well as the research method and structure The author will present the theoretical basis and proposed research model in the next chapter

Chapter 2: Literature review and research model This chapter of the thesis presents theories about relationship quality, overviews previous studies, and develops hypotheses and research models

Chapter 3: Methodology In this chapter, the thesis clarifies the research context at Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh Branch related to the factors in the research model Develop research processes, describe scales, survey questionnaires, research samples and analysis tools

Chapter 4: Emperical results This chapter analyses and reports the research results, including sample information, descriptive statistical analysis of scales, reliability analysis, factor analysis, correlation and regression analysis From there, conclude the research hypotheses

Chapter 5: Conclusions and management implications This chapter discusses the results, proposes application implications, discusses limitations and future research directions, and concludes the thesis.

LITERATURE REVIEW AND RESEARCH MODEL

Definitions

According to the Law on Credit Institutions No 47/2010/QH12 issued by the National Assembly of Vietnam on June 16, 2010, credit institutions are defined as businesses participating in many banking activities These activities include banks, non-bank credit institutions, tissue financial institutions and people's credit Specifically, a commercial bank is allowed to carry out all banking activities and other business activities with profit goals according to the provisions of this Law The core of banking operations includes accepting deposits, granting credit and providing services In addition, the bank's commercial shares also have information about the capital contributions of many individuals or companies in the form of shares

Berry (2002) defines relationship marketing as a strategy to attract, maintain and develop customer relationships Gronroos (1994) expands on this by including relationships with noncustomers, emphasizing that continuing relationships include establishing, maintaining, and enhancing the connection with customers and other partners The ultimate goal of the following relationship is completing all internally linked information through back-and-forth exchanges and implementing committed connections The principles of relationship marketing include hospitality, personalization, and other facts

According to Dwyer et al (1987), relationship quality includes three main factors: satisfaction, reduced opportunistic behaviour and trust, as perceived by customers Crosby et al (1990) were the first to introduce a comprehensive concept of relationship quality, emphasizing the importance of trust and satisfaction in the relationship between customers and sellers Various studies have shown a strong relationship between trust and customer satisfaction, suggesting that these two concepts together form a measure of relationship quality (Crosby et al., 1990; Wray et al., 1994; Bejou et al., 1996; Leuthesser, 1997; Naude and Buttlte, 2000, ) Additionally, other studies have identified trust, satisfaction, and commitment as essential components of relationship quality (Hennig-Thurau and Klee, 1997; Chu and Wang, 2012; ) Furthermore, several studies have expanded relationship quality components to include conflict, reduced opportunism, customer orientation, and ethics (Dorsch et al., 1998; Roberts et al., 2003; )

Results regarding the quality of relationships vary considerably across studies These outcomes include retention of future purchases, customer retention, the establishment of long-term relationships, loyalty, intention to maintain future relationships, and reduction of opportunistic behaviour (Hoang Le Chi, 2013) Notably, loyalty emerged as a recurring theme in most of these studies Khirallah (2005) defines customer loyalty as the continuous choice of a particular bank to do business with and recommending that the bank's services to others Additionally, even when offered potentially superior alternatives at other banks, loyal customers will still prioritize their chosen bank as their first choice when looking for additional services

Relationship length: To have a strong relationship, we must build it slowly and gradually increase over time With time, the relationship moves from awareness to commitment, and the latter represents the highest stage of the affiliate relationship

In other words, what may begin as a commercial transaction without emotional content may gradually develop over time into a strong relationship: shared commitments and caring for each other According to Dwyer et al (1987), the relationship development process model asserts that, over time, a relationship will develop continuously from the level of awareness to commitment and will later reach the highest level of commitment, which is the related relationship link Accordingly, customers and banks can turn separate, discrete transactions into a relationship (Czepiel, 1990) Over time, this relationship can become more committed and long- term Long-term service relationships between customers and banks will provide customers with benefits such as enhanced relationships, greater mutual understanding, and greater service satisfaction The longer the relationship, the greater the benefits

Relationship intensity: The level of contact or frequency between the bank and the customer, whether in the form of face-to-face meetings or telephone conversations, positively impacts the relationship and its consequences, which will, of course, improve the bond relationship Therefore, repeated interactions between customers and banks are expected to lead to the formation of habits and increase customer trust in the bank (Barnes, 1997)

2.1.2 Benefits brought to customers from banks

The value each customer brings is not only bringing businesses more profits, but they can also help businesses save costs due to the effectiveness of cutting advertising and transaction costs Along with economic values, loyal customers are also the best means of communication for businesses Good customer reviews will help enhance the reputation and image of the business The quality of the customer and service banker relationship is vital in developing customer loyalty to the company (Bove & Johnson, 2000).

The previous related research

Research on solutions to improve corporate customer relationship management at the Bank of Agriculture and Rural Development Khanh Hoa branch by Ho Thi Hong Tuyet (2013) This study focuses on solutions to improve corporate customer relationship management at the Bank of Agriculture and Rural Development Khanh Hoa branch to attract potential customers, retain current customers, and increase customer satisfaction and profitability in banks The research model is as follows:

Source: Ho Thi Hong Tuyet (2013)

Accordingly, the customer relationship management model includes three levels: strategic level, analytical-tactical level and operational level Research shows that human resource factors (bank training, building a customer-oriented culture), business process (establishing mission and goals, building a customer database, ), and technology play an important role, contributing to the success in maintaining and applying the customer relationship management model

Research on evaluating factors affecting customer and banking relationships at Kien Long Commercial Joint Stock Bank - Rach Gia branch by

Le Thuy Thuy Tien (2015) In her research, author Le Thuy Thuy Tien has inherited research models and has reviewed and proposed a model of the relationship between customers - banks and banking services According to SERVQUAL, there are six main factors: (1) satisfaction, (2) customer relationship policy, (3) customer relationship length, (4) number of customer relationships, (5) relationship intensity and (6) trust, as shown below:

Figure 2.2 Customers and bank relationship model

Source: Le Thuy Thuy Tien (2015)

Research results show that the customer relationship policy factor combines support service factors, promotion programs, etc In summary, the studies are considered in terms of research Both qualitative and quantitative focus on researching factors that affect loyalty in the service sector to develop solutions to improve relationships with current customers and improve service quality and customer care In particular, author Le Thuy Thuy Tien's research is like a breath of fresh air when building a model with factors affecting the customer-bank relationship Research also needs to clearly define the role of service banks in establishing customer loyalty to service providers If a customer has a good relationship with a bank, how loyal will that customer be to the service provider if the bank changes its work unit? When customers have good relationships with many banks, when there is a change in one of those banks, will customers change their loyalty?

The study "Quality of the relationship between Individual Customers and Vietnam Public Commercial Joint Stock Bank (PVcomBank) Saigon branch" by author Ha Nam Khanh Giao (2019) explores and measures the main factors that impact Improve the quality of relationships between individual customers and Vietnam Public Commercial Joint Stock Bank The author based on the relationship quality theory of Dwyer and colleagues (1987), proposes the following research model:

Source: Ha Nam Khanh Giao (2019) This study uses the SPSS 20 tool to analyze scale reliability through Cronbach's Alpha coefficient, EFA exploratory factor analysis, and AMOS 22 software to analyze CFA confirmatory factors and test the structural model— linear SEM for survey data from 350 customers Research results show that four (4) factors positively impact relationship quality, arranged in descending order of strength: trust, conflict resolution, and employee commitment Relationship quality also has a significant positive impact on customer loyalty The results also help branch managers make appropriate strategic adjustments and actions to enhance individual customer loyalty

Bove and Johson (2000) built an integrated model describing the relationship between customers and service banks The view is that automated banking services and other technologies allow banks to increase profits by reducing personnel and network costs; however, the long-term impact of automated services and technologies This increase in profits is dependent on the customer's attitude and behavioural outcomes Either they are satisfied with the service or search and replace another service provider Therefore, the study introduces and tests a model of the relationships between one of the service quality factors such as convenience/access (ease of transaction), customer satisfaction, customer loyalty and behavioural transformation

The author uses this fundamental theoretical model for the thesis research However, the thesis only focuses on the main factors in this model that are suitable for the business conditions and business characteristics of the bank The following section will delve into some influencing factors from this model of Bove and Johnson (2003)

Matzler et al (1996) studied factors affecting the relationship quality between customers and banks Matzler et al (1996) pointed out 11 components that impact the quality of the customer-bank relationship, specifically: "Trust": confidence in the expertise and information that the bank provides, and trust promise of the bank;

"Access to other support services": be fully informed, fast, timely, accurate, and easy to update; "Apply regular programs": regular, practical, attractive programs; "Fee and price factors": competitive and appropriate fees and interest rates; "Meet customer needs": feel satisfied and pleased when suggestions from customers are accepted;

"Public relations element": feel the closeness and love for the bank through noble actions and gestures for the community; "Customer care": customers feel care, love, and closeness like family members, different from the relationship between customers and businesses

Matzler et al.'s (1996) research provides several important factors that go deeper into services and suit the banking context Hence, this is the thesis's primary basis for approaching and exploiting several appropriate factors.

Hypothesis and research model

Trust is the mutual trust and understanding between the customer and the bank; repeated exposure to bank service leads to the formation of habits and institutions of behaviour that will increase customer trust Frequency of contact also enhances this level of rapport, which is a decisive factor in maintaining the relationship Contact intensity also includes some measure of physical proximity, the spatial distance between a customer and a service bank, to enhance the sense of familiarity that facilitates the perception of the bank's transaction trust and warmth (Crosby, 1990)

To regularly maintain a customer base and attract more potential customers, the level of trust and confidence is a feature related to the service provision process that requires accuracy, stability, and reliability When a bank promises to do something within a specific time, does it fulfil its promise? When customers encounter problems, does the bank care and solve those problems? Does the bank provide services on time as promised and focus on not making errors during the entire working process? Do customers trust corporate ethics when serving banks? Are the contracts and transactions signed fair and mutually beneficial for both parties, customers and businesses? Therefore, when customers trust banks, they trust the bank so that transactions will happen Furthermore, the more trust increases, the more sustainable the relationship will be, and they will expand their relationships and have more contact with other banks, as well as with different transactions (Bove & Johnson, 2000; Le Thuy Thuy Tien, 2015; Ho Huy Tuu, 2016)

Hypothesis H1: Customer trust in the bank has a positive impact on the quality of the customer-bank relationship

Previous studies have shown that service quality is the cause of satisfaction and creates a bond between customers and the bank (Bove & Johnson, 2000) However,the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh Branch does not have a specialized customer consulting department, so when customers want advice, they must contact specialized departments The main form of consulting at banks today is by phone or direct contact at the bank This creates a close relationship between customers and banks

Hypothesis H2: Customer support services of bank have a positive impact on the quality of the customer-bank relationship

Research by Le Thuy Thuy Tien (2015) has shown that when customers feel they are favoured with benefits, they will be more satisfied and are willing to strengthen their relationship with the bank This result is also similar to the research of Bove and Johson (2000) on the relationship of customers' benefits from banks

Currently, the State Bank of Vietnam has introduced ceiling deposit interest rates, which only apply to deposit mobilization activities, so banks use interest rate policy as the primary competitive tool The form of service competition has yet to be popularized Therefore, the bank must establish the most reasonable and attractive interest rate combined with its reputation and prestige to increase its mobilization market share This is not easy because if the interest rate is higher than that of competitors, the lending interest rate must also increase to ensure it The bank still makes a profit If the interest rate is lower, it will not attract customers Due to increased competition, deposit interest rates tend to increase while deposit-related services do not correspondingly The bank has the most optimal deposit interest rate (accompanied by regular attractive promotions), relatively cheap service fees, and credit interest rates are regularly adjusted to suit the current level Furthermore, service costs are low, and service prices are what customers care about when conducting bank transactions This policy has increased the level of contact between customers and banks and made the customer-bank relationship closer

Hypothesis H3: Customer satisfaction with banking services has a positive impact on the quality of the customer-bank relationship

Banking service quality reflects the ability to meet or even exceed customer expectations and needs to be maintained regularly and consistently Service quality is intangible and is influenced by the entire process of the bank providing services, from needs research and product design to product supply and customer care Banks can build a large customer base if they are capable and realistic of meeting customer expectations At the bank, all departments that deal directly with customers and the banking team can introduce and advise customers on essential content about the branch's products and services, thereby helping Customers get the best choice, bringing added benefits to customers (Matzler et al., 1996; Johnston, 1995)

Every year, the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh Branch organizes customer conferences to have the opportunity to dialogue directly with customers For loyal customers, when they have any request regarding price, the teller will submit it to the leader, if satisfactory, the Board of Directors will review and approve Because of the critical nature of the teller team when implementing this policy for customers and following the research results of Bove and Johson (2000) on the relationship between benefits provided to customers About the quality of the bank-customer relationship, the following hypothesis is proposed:

Hypothesis H4: The satisfaction of customers' needs at the bank has a positive impact on the quality of the customer-bank relationship

PR (public relations) aims to build a portrait of the bank, portraying the differences and unique values that the bank brings to customers and society (Kotler, 2007) Unlike media promotion activities, PR's task is to attract the press with positive articles about their activities to the bank Therefore, for PR to be highly effective, businesses must be skilful, tactful and not too ostentatious In Western countries, especially the US, PR has developed very strongly: from government agencies, the presidential office, the prime minister, ministries and branches, there are departments responsible for this function (Johnston, 1995) Banks in this department are called government spokespersons for the president They support the government's views, explain, and convey government information In addition, banks and various organizations need people in charge of PR work to promote and evaluate public attitudes and determine policies and operational processes to improve public understanding and acceptance (Dinh Thi Thuy Hang, 2016)

In previous research results on customer-bank relationships, it has been shown that PR is one factor that impacts the frequency and depth of relationships between customers, the community and the bank Typically, in Le Thuy Thuy Tien's research, this is the factor with the fifth most substantial impact on the number of relationships and relationship length (with coefficient β = 0.103 with significance level < 5%), and this is the factor affecting the level of customer loyalty to the bank (with coefficient β = 0.112 with significance level < 5%) Therefore, a hypothesis can be built to describe the relationship between the Responsiveness factor and the Customer-Bank relationship

Hypothesis H5: Building a bank's public relations has a positive impact on the quality of the customer-bank relationship

2.3.1.6 Promotions and customer care programs

In today's competitive market conditions, businesses that take good care of their customers will stand firm and have a competitive advantage Customers will often comment, feel and evaluate the quality of products and services based on after- sales policies They will even forgive mistakes and shortcomings if they have good after-sales service Because the sales and transaction banking force directly communicates and implements this policy, the more frequent promotions, lottery, and lucky draw programs will create conditions for the next iteration, and the bond becomes stronger (Kotler, 2006; Vavra, 1997) According to Bove and Johson (2000) about the positive impact of the benefits provided to customers on the quality of the bank-customer relationship, the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh Branch also regularly has programs for customer gratitude, this leads to the hypothesis:

Hypothesis H6: The bank's promotion and customer care programs have a positive impact on the quality of the customer-bank relationship

The table below is compiled from the research results of previous studies and research models on online purchasing behaviour, mainly by domestic and foreign authors, based on the theoretical research models stated in this section 2.1 of the article:

Table 2.1 Summary of previous research results

(easy to transact) x X behavioral transformation x

With the desire to identify factors that affect the quality of the individual customer relationship with the bank, which is the basis for showing the level of customer loyalty to the bank and service provider, the author supposes that the research models of Bove and Johnson (2000), Matzler et al (1996) meet this expectation Besides, the thesis also relies on the research of

Le Thuy Thuy Tien (2015) and Tran Thi Thanh Ha (2016) in other banks to select appropriate influencing factors in the context of banks in Vietnam Based on adjusting several factors consistent with the actual situation at the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh

Branch and the hypotheses proposed above, the author's proposed research model is shown in Figure 2.4

METHODOLOGY

Characteristics of research subjects

3.1.1 Introduction of the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh Branch

Located in the heart of Ho Chi Minh City, the Tan Dinh branch of Vietcombank serves as a key conduit for banking services within this vibrant community As an integral part of the Joint Stock Commercial Bank for Foreign Trade of Vietnam for Foreign Trade of Vietnam, the Tan Dinh branch upholds the prestigious legacy of Vietcombank, delivering a wide array of financial products and services tailored to meet the diverse needs of its individual and corporate clients Renowned for its commitment to excellence, the branch ensures a high level of customer satisfaction through personalized service, leveraging advanced technology and a deep understanding of the local market dynamics Whether it's for day-to-day banking needs, strategic financial advice, or facilitating international transactions, the Tan Dinh branch stands ready to support its clients' financial journeys, contributing to their success and the economic growth of the surrounding community

3.1.2 Operational characteristics at banks related to customer-bank relationships 3.1.2.1 Characteristics of individual customers transacting at the bank

Data on changes in customer deposits and loans at the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch over the years are as follows:

Table 3.1 Customer deposits and loans at the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan

Dinh branch over the years Individual customers’s deposit Individual customers’s loans

Source:the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh Branch

Through table 3.1., we see that about deposit customers, we see that the number of customers has been steady over the years: in 2021, it is 1,911 customers; in 2022, it is 2,061 customers; in 2023, it is 2,081 customers The number of customers has increased over the years However, it could be higher due to old customers ending transactions and settling deposits to invest in other channels such as real estate, stocks, or consumption and business The number of new customers must increase to compensate for the decrease, but the number of customers still increasing is very good The capital mobilization balance also increased from 2021 to 1,803 billion VND to 1,853 billion VND in 2022, a net increase of 50 billion; however, in 2023, it decreased by 456 billion due to the significant impact of the global economic crisis, customers had to withdraw money comes in to pay expenses, offset production and business activities

Regarding loans, the number of customers in 2021 is 3,179 customers; in 2022, it is 3,446 customers; in 2023, it is 3,481 customers, as well as deposit customers and loan customers all have grown over the years in number, and outstanding debt is increasing Net growth over the years: in 2021, it is 1,855 billion VND; in 20226, it is 2,191 billion VND; in 2023, it is 2,273 billion VND The growth of outstanding loans has not been significantly affected by the global economic crisis; outstanding loans still grow steadily and well

The individual market segment includes individual customers or independent entities Individual customers have differences in age, gender, income, lifestyle, interests, etc These characteristics lead to differences in consumer behaviour and demand for banking products and services Therefore, currently, banks often continue to subdivide individual market segments according to the following specific criteria:

Age: It is a commonly used criterion in banking individual customer market segmentation today The age of individual customers greatly influences demand, changes in demand structure for products and services, and how to use bank products and services

Social class and income: This also affects the demand for banking products and services Because different social classes have different needs and ways of using bank products and services Income is a major influencing factor, reflecting supply and demand for banking products and services

Gender: Different genders have different needs and ways of using banking products and services In previous years, gender factors were unimportant, so they were rarely used in banking market segmentation Today, changing social trends, significantly the recent increase in the female labour structure in all fields of social labour, have forced banks to make changes and organize more severe research on the subject with this changing trend

The base configuration, residential: Market segmentation based on multiple criteria will not accurately assess customer needs and desires for products and services Therefore, the bank has used a combination of two factors: regional structure and population in the segment, because each different residential area often has very different characteristics in terms of lifestyle, customs, habits, consumption and savings etc

Customer psychology: Psychology is vital since banks value customers' thoughts Customer psychology includes customers' opinions, beliefs and spiritual values

Currently, the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch has a policy of adding interest rates for priority customers who deposit savings at the counter with a balance of 1 billion VND or more, specifically:

Table 3.2 Interest rates for priority customers

Listed capital mobilization interest rates (% per year)

Maximum interest rate (% per year)

Maximum capital mobilization interest rate

Source: Joint Stock Commercial Bank for Foreign Trade of Vietnam -

When customers walk out of the bank door, it does not mean they are no longer extended customers Once they are a bank customer, they are always a bank customer Collecting more information about customers will always be helpful and appreciated

The principles of customer care relate to the satisfaction of customer needs, such as considering the customer as the first factor, assessing related needs, and designing products and services that meet their needs and needs and create a "good" impression in the eyes of customers All of the above activities consider customers to be the most influential people in the bank and consider their satisfaction as the goal for all activities

Specifically, customer care includes stages from providing information to customers about banking products and services, directing customers to consume products, improving the product and service system and providing supporting services during the product supply process The final step is to provide after-sales services and other care activities to strengthen and tighten the long-term relationship between businesses and customers In addition, customer care also includes determining customer needs, especially for potential customers Banks must fully, thoroughly, and expressly understand their needs and how to approach them, such as sending letters, calling, or visiting customers regularly

This is the most typical activity in marketing Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch thoroughly uses this tool to bring images as well as convenient features of products and services to customers

Tapping into customers' psychology of liking promotions, Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch has taken advantage of promotions such as partial discounts or freebies for customers when using one or a group of customer services This will help customers understand products and services, gain sympathy, and make them want to use them long-term

Developing new customers is an important goal, but at the same time, maintaining market share with loyal customers, in addition to discounts, the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch also has gratitude programs., and gifts to traditional customers who have been with us for a long time and trust in using the bank's services

Research process

When conducting this research, the author followed six steps, including:

Step 1: Identify the research problem - In this step, the author determines the research problem of the topic; precisely, the author will determine the general objective, specific objectives, and research questions to ask and answer to resolve these questions

Step 2: Research approach - This step is responsible for overviewing the theoretical basis of the relationship between individual customers and, in general, the relationship between individual customers and the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan branch Dinh This step researches relevant topics at home and abroad to build a theoretical model on the quality of relationships between individual customers and at the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch

Step 3: Research design - the author develops a research process, chooses a research method, builds a measurement scale, determines sample size, data collection method (survey questionnaire) and other data analysis techniques

Step 4: Survey - In this step, the author conducts an investigation and collects data using the questionnaire that the author previously developed Besides, in this step, the author will find errors during the survey and adjust the errors encountered to ensure the reliability of the data the author collected

Step 5 Data analysis - In this step, the author uses SPSS version 20.0 to analyze and process data Specifically, the author coded the scale, entered data into the computer, cleaned the data, adjusted errors and analyzed the data according to the methods

Step 6: Write a research report - In this step, the author, based on the results obtained from data analysis, proceeds to write a complete thesis according to the initial outline proposed earlier

This process can be divided into two stages: preliminary and official Preliminary research was conducted using a qualitative research approach through group discussion techniques This research step aims to discover, adjust and supplement factors and measurement attributes that impact the relationship between individual customers and the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch in addition to the factors in the model Formal research was conducted using a quantitative research approach through a formal questionnaire The sample size of this study is 300 customers, and it was conducted from January

2020 to June 2020 The purpose is to test the measurement model and the theoretical model and hypotheses in the model The scale was tested using Cronbach Alpha reliability coefficient and EFA exploratory factor analysis

Table 3.3 Brief description of paraemeter in the study design

1 Preliminary Qualitative Expert discussion (5 people) and group discussion

2 Official Quantitative Direct interview through questionnaire N = 250

Methodology

Preliminary research was conducted using a qualitative research approach through expert consultation and group discussion techniques (table 3.1) This research step aims to discover, adjust and supplement factors and measurement attributes that impact the relationship between individual customers and at Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch in addition to the factors in the model After developing the proposed research model, the author conducted the first interview using expert consultation and focus group discussion

This study consulted experts (5 people) (See Appendix 1)

- In your opinion, what do customers usually expect from the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch employees?

- As customers, what do you think they care about the most during transactions at the bank?

- Show the experts the proposed theoretical model with the initial scale, ask questions about which factor is most important, second, third ? Which factor is not important?

- In addition to the above factors, what factors do you think need to be edited and supplemented to suit the characteristics of the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch?

This research was also conducted through in-depth interviews and discussions with 20 customers using services at Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch

Questions to ask customers during group discussion:

- In your opinion, when using services at a bank, what factors are the quality of the relationship between customers evaluated?

- In your opinion, what factors ensure the quality of the relationship between customers and clients? (Not suggested)

- Suggested 06 factors that affect the quality of relationships between customers and include the factors expected by the research author Among those factors, which do you think is the most important, second, third ? Which element is not necessary? Why? What factors make you satisfied? Which factor are you not satisfied with? How do you feel about the quality of relationships between customers at the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch?

- According to you, in addition to the factors mentioned above, what other factors affect the relationship quality between customers and The Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch?

The scale used in this study is based on the proposed theoretical model consisting of six factors (Scale) through 34 observed variables and 1 factor of customer-bank employee relationship quality through 4 observed variables with 5 Likert levels

The original scale includes factors that affect the quality of relationships between customers It is inherited from scientific research and is recognized as the most suitable scale to measure the quality of relationships between customers and customers However, because there are fundamental differences between different banks, adjusting and supplementing some observed variables of the original scale is necessary The information collection method used to adjust and supplement the initial scale is a prepared discussion outline and discussion with experts

Twenty opinions were shared during the group discussion All opinions agreed with the expected content for designing research to evaluate the quality of relationships between customers and at Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch The members appreciated the meaning and importance of the research problem and finding solutions to manage and improve the quality of relationships between customers and at the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch in the current period of competition and development

The original scale will be adjusted and named the official scale through the research results in this step As follows:

Table 3.4 Factors about the customer–bank employees relationship quality

Dealing with the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch staff, I feel

The author consulted expert opinions and inherited from the model of Matzler et al (1996); Le Thuy Thuy Tien (2015)

I always believe in commitment when working with

The author consulted expert opinions and inherited from the model of Matzler et al (1996) and Le Thuy Thuy Tien (2015)

3 The data provided by employees is accurate and confidential

The author consulted expert opinions and inherited from the model of Matzler et al (1996) and Le Thuy Thuy Tien (2015)

I feel secure when dealing with the staff The author consulted expert opinions and inherited from the model of Matzler et al (1996) and Le Thuy Thuy Tien (2015)

Dealing with the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch staff, I feel

5 I always receive timely information The author consulted expert opinions and inherited the model of Matzler et al (1996) and Le Thuy Thuy Tien (2015)

6 Staff always provide guidance and support during transactions

The author consulted expert opinions and inherited the model of Matzler et al (1996) and Le Thuy Thuy Tien (2015)

7 The information system the bank provides is helpful

8 Bank staff are always willing to assist when I need it

Transacting at Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan

9 Very pleased The author consulted expert opinions and inherited the model of Matzler et al (1996)

10 My feelings is positive The author consulted expert opinions and inherited the model of Matzler et al (1996)

11 Very satisfying The author consulted expert opinions and inherited the model of Matzler et al (1996)

12 Very comfortable The author consulted expert opinions and inherited the model of Matzler et al (1996)

13 Very happy The author consulted expert opinions and inherited the model of Matzler et al (1996)

(4) Responding to customers by staff

Dealing with the staff of Joint Stock Commercial Bank for Foreign Trade of Vietnam

14 The staff always satisfactorily answered my questions

The author consulted expert opinions and inherited the model of Matzler et al (1996);

15 The staff responds well to suggestions when I request them and always listens to my suggestions

16 The staff thoroughly resolves my requests, and when an incident occurs, the staff always accompanies me to resolve it in a way that is convenient and beneficial to me

17 When I need assistance, the staff is always proactive in communicating

18 The staff always gives me the most helpful solution as well as understands and accurately grasps my needs

19 Employees are very active in participating in community activities

20 The staff is very friendly and accompanies customers

21 I have a good impression of the bank's customer-oriented support programs

22 The bank regularly appears in major local events

23 The bank's promotional program is attractive

24 The programs are practical and interesting

25 Customer care program of Banking brings me much joy The author consulted expert opinions and inherited the model of Matzler et al (1996);

26 The bank's customer care program is rich and diverse

(7) Quality of customer-banker relationship

27 I feel I have an excellent relationship with Joint Stock Commercial Bank for

Foreign Trade of Vietnam - Tan Dinh branch

Le Thuy Thuy Tien (2015); Tran Thi Thanh

28 In general, the quality of the relationship The author consulted expert opinions and between me and the Joint Stock

Commercial Bank for Foreign Trade of

Vietnam - Tan Dinh branch makes me satisfied inherited the model of Matzler et al (1996),

Le Thuy Thuy Tien (2015), Tran Thi Thanh

29 Maintaining a relationship with the Joint

Stock Commercial Bank for Foreign

Trade of Vietnam - Tan Dinh branch helps me receive many incentives from the bank

The author consulted expert opinions and inherited the model of Matzler et al (1996),

30 The longer I spend creating a relationship with the Joint Stock

Vietnam - Tan Dinh branch, the more I trust the bank

The author consulted expert opinions and inherited the model of Matzler et al (1996),

Source: Suggested by Author Thus, after consulting with experts and group discussions, the questionnaire results included six factors through 30 observed variables and one perception factor with four observed variables about the customer–bank employees relationship quality

The survey sample is given in Appendix 2 In this study, the author designed the questionnaire to include three parts: introduction (open letter), general information (personal information of respondents) and content

Introduction: In this part, the author will give three types of information to the respondents, including the purpose of the survey, the reason why the recipient has been selected for the survey and the reason why the recipient must participate in the survey (e.g have something beneficial for them)

General information section: In this section, the author will ask some questions about the respondent's personal information, including the full name, age, gender, etc

Content: In this part, the author will ask questions about factors affecting the quality of the customer-banker relationship at the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch To clearly express the content of the question, the author uses a closed-ended set of questions based on the Likert scale, which represents statements in which the respondent shows a specific level of agreement and disagreement

Sample size: According to Hair et al (2006), the minimum sample size to use EFA is 50, preferably 100, and the ratio of observations/measured variables is 5:1; one measured variable needs at least five observations The number of observations means the number of valid survey forms needed The measurement variable is simply a measurement question in the survey For example, if our survey has 34 measurement questions, applying a 5:1 ratio, the minimum sample size for EFA would be 34 * 5 = 170 This sample size is larger than the minimum ( 50 or 100), so we need a minimum sample size to perform an exploratory factor analysis EFA of

150 observations The author chose the sample size for this study to be N = 300, so it fully meets the above rules

Sampling method: In this study, the author uses a non-random sampling method based on convenience sampling When investigating, the investigator can ask any customer they meet at the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch to request an interview.

Data processing and analysis methods

Data were entered, cleaned, and analyzed using SPSS 20 software

Evaluation of the scales: The scales are preliminarily evaluated through analytical tools, such as descriptive statistics, to evaluate the average level and standard deviation and preliminary evaluation of the normal distribution of the observed variables Cronbach's alpha reliability analysis evaluates the consistency of questionnaire items for a conceptual structure and can be used to eliminate junk variables Exploratory factor analysis EFA is used to explore the data structure to see if there are the correct number of intended factors It also helps to reduce and summarize the data after evaluating the scale's reliability using the Cronbach alpha coefficient and eliminating variables that do not ensure reliability In research, we can collect quite a large number of variables and most of these are related to each other, their number must be reduced to a number that we can use The relationships between groups of interrelated variables are considered and presented in the form of a small number of fundamental factors Therefore, this method is beneficial for determining the necessary variables for the research problem and is used to find relationships between variables

Evaluating the relationship between variables in the model: Research using correlation analysis and regression analysis methods The relationship between the dependent variable and independent variables must be considered by building a correlation matrix At the same time, the correlation matrix is a tool to consider the relationship between independent variables If these variables are strongly correlated, multicollinearity has a high risk, which violates the model's assumptions Regression analysis is the study of the dependence of one variable (dependent variable or explained variable) on one or more other variables (independent variable or explanatory variable) with the basic idea of estimating or predicting prices or the average value of the dependent variable on a known basis of the independent variable.

EMPIRICAL RESULTS

Results of descriptive statistical research

The author surveyed with the results of distributing 250 survey questionnaires, recovering 250 questionnaires, and during the data entry and data cleaning process,

25 questionnaires were invalid Polls were eliminated because survey respondents needed to provide complete information or information was eliminated because survey respondents made the same choice Therefore, the official survey sample remains at 225 samples All data from these 225 questionnaires were processed using SPSS software version 20 for research

* About gender, age and income

Table 4.1 Summary of descriptive statistics of the study sample

CHARACTERISTIC TẦN SỐ TỈ LỆ

Source: author calculated based on survey data

According to Table 4.1, we have commented:

Regarding gender, the female gender accounts for 68%, and the male gender accounts for only 32%; with this survey results, the female gender often goes to the bank more often than the male gender

Regarding age and income, it can be seen that older age groups often have higher incomes and use more banking services.

Cronbach alpha reliability assessment

Evaluating the reliability of the scale is essential in analysis, and to evaluate the reliability of the scale of variables in the research model, the author calculated Cronbach's Alpha coefficient and considered the following factors: Coefficient of correlation of total variables

According to the theoretical basis in Chapter 3, this author's research will evaluate the scale based on the following criteria:

(1) Type observed variables with total variable correlation coefficients less than 0.3 (these are variables that do not contribute much to the description of the concept to be measured, and many previous studies have used this criterion )

(2) Choose a scale with Cronbach's Alpha reliability greater than 0.6 (the reason for choosing is because the concepts in this study are relatively new to the research subjects when responding)

In addition, if the Cronbach's Alpha reliability is more significant than 0.6 and the total variable correlation coefficient is less than 0.3 but the column "CronBach's Alpha if variables are eliminated" is greater than the Cronbach's Alpha reliability, then that observed variable will also be eliminated

The results of testing the scale are presented in detail by the author in Table 4.2 For all scales: On the first run, Cronbach's Alpha coefficient received a value greater than 0.6, and no variable had a total variable correlation of less than 0.3, so we see that All items asked in the scale are retained

Table 4.2 Results of testing the scale's reliability with Cronbach's Alpha

CODE Observed factors/variables Coefficient of correlation of total variables

TT1 I trust the staff's expertise 0,823 0,867

TT2 I always believe in commitments when working with 0,791 0,911

TT3 The data provided by employees is accurate and confidential 0,771 0,.918

TT4 I feel secure when dealing with the staff 0,813 0,904

HT Customer support service – Cronbach’s Alpha = 0,947

HT2 Staff always provide guidance and support during transactions 0,847 0,938

HT3 The information system the bank provides is helpful 0,867 0,932

HT4 Bank staff are always willing to assist when I need it 0,835 0,942

HL Satisfaction with service – Cronbach’s Alpha = 0,946

HL 2 My feeling is positive 0,851 0,935

DH Customer response by employees – Cronbach’s Alpha = 0,930

DH1 The staff always satisfactorily answered my questions

DH2 The staff responds well to suggestions when I request them and always listens to my suggestions

DH3 The staff thoroughly resolves my requests, and when an incident occurs, the staff always accompanies me to resolve it in a way that is convenient and beneficial to me

DH4 When I need assistance, the staff is always proactive in communicating

DH5 The staff always gives me the most useful solution as well as understands and accurately grasps my needs

QH Public Relations– Cronbach’s Alpha = 0,936

Employees are very active in participating in community activities

The staff is very friendly and accompanies customers

I have a good impression of the bank's customer-oriented support programs

The bank regularly appears in major local events

KM Promotion and customer care– Cronbach’s Alpha = 0,874

KM1 The bank's promotional program is attractive 0,476 0,930

KM2 The programs are practical and interesting 0,760 0,827

KM3 The customer care program Banking brings me much joy

KM4 The bank's customer care program is rich and diverse

CL Quality of customer-bank relationship – Cronbach’s Alpha = 0,797

CL1 I feel I have an excellent relationship with Joint

Stock Commercial Bank for Foreign Trade of

CL2 In general, the quality of the relationship between me and the Joint Stock Commercial

Bank for Foreign Trade of Vietnam - Tan Dinh branch makes me satisfied

CL3 Maintaining a relationship with the Joint Stock

Vietnam - Tan Dinh branch helps me receive many incentives from the Bank

CL4 The longer I spend creating a relationship with the Joint Stock Commercial Bank for Foreign

Trade of Vietnam - Tan Dinh branch, the more

Source: author compiled from SPSS analysis results

From Table 4.2, we see that the scales for the independent variables all have Cronbach's Alpha coefficients greater than 0.6, and the observed factors all have correlation coefficients across the total variable greater than 0.3, so the scales All meet standards, ensuring good quality No scale has a total variable correlation coefficient more significant than the Cronbach Alpha coefficient, so no scale is eliminated

So, the final model includes 30 scales (no scale is eliminated), which are factors that directly impact the relationship quality between individual customers and the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch Each group will have essential factors that have been tested for reliability based on the results presented in Table 4.2.

EFA exploratory factor analysis

Also, from the theoretical basis in Chapter 3, the author sees that using the results of EFA in research is the foundation for the next step of the research;

Factor analysis using the Principal Component method allows reducing many observed variables that are more or less related to each other into quantities expressed in the form of straight-line correlations called factors When performing factor analysis, researchers are often interested in:

(1) KMO coefficient >= 0.5, Bartlett's test is statistically significant (Sig =< 0.05) - (Hoang Trong & Chu Nguyen Mong Ngoc, 2008)

(2) Total variance extracted >= 0.5 and Eigenvalue > 1 (Gerbing & Anderson, 1988)

Thus, when running an EFA exploratory factor analysis, the author declared the condition to retain variables with a multiplicative loading factor of 0.5 or higher to have more basis for variable classification in the author's analysis

4.3.1 EFA analysis for independent variables

Performing factor analysis has the following results:

Table 4.3 KMO results of independent variables

KMO Measure of Sampling Adequacy 0,915

The KMO results table shows that KMO = 0.915 > 0.5, so the EFA exploratory factor analysis is appropriate with the value sig = 0.000 50% Thus, the six extracted factors explain 83.129% of the data variation of the 26 observed variables participating in EFA

Table 4 5 Rotated component matrix for independent variable

The results of the rotated matrix show that the 26 observed variables are classified into six factors, all observed variables have Factor Loading coefficients greater than 0.5 and there are no longer wrong variables

4.3.2 EFA for the dependent variable

We perform factor analysis for the dependent variable to obtain the following results:

Table 4 6 KMO results of the dependent variable

KMO Measure of Sampling Adequacy 0,634

The KMO results table shows that KMO = 0.634 > 0.5, so the EFA exploratory factor analysis is appropriate with the value sig = 0.000

1 This factor explains 62.452% of the data variation of the five observed variables participating in EFA

Table 4.8 Rotated component matrix for dependent variable

When EFA, the dependent variable extracts a single factor from the included observed variables, so the matrix cannot be rotated Being able to criticize one factor means that the CL scale ensures the unidimensionality of the observed variables of the dependent variable and converges quite well.

Results of measurements after EFA analysis

The above-observed variables are part of the variables After performing reliability analysis and EFA, there are no bad variables Thus, the theoretical model does not need to be adjusted because the number of independent variables remains the same as the proposed model This result is consistent, and we continue to perform further analysis

Extraction Method: Principal Component Analysis a 1 components extracted.

Correlation and regression analysis

To analyze the degree of correlation between independent and dependent variables as well as independent variables with each other, we perform Pearson correlation analysis and produce the following table of results:

F_CL F_TT F_HT F_HL F_DH F_QH F_KM

The table shows that between the dependent variables and the dependent variable, the sig value is 0.000 < 0.05, so the extracted variables are statistically significant and correlated with the dependent variable, qualified to run regression accumulation analysis

The correlation coefficient of the independent variables with the dependent variable CL: the QH variable has an r of 0.865, so it has the strongest correlation with the dependent variable The remaining variables all have a strong correlation but are not equal to the QH variable The variables are highly correlated with the dependent variable Thus, hypotheses H1, H2, H3, H4, H5, H6 are accepted among the set hypotheses That means the independent variables have an impact on the dependent variable

4.5.2 Regression analysis and hypothesis testing

Performing multivariate regression gives us the following results:

Table 4.10 Model Summary of multivariate regression

Std Error of the Estimate

1 ,959 a ,920 ,917 ,22335 2,199 a Predictors: (Constant), F_KM, F_HT, F_TT, F_HL, F_DH, F_QH b Dependent Variable: F_CL

The table above gives us the results of R squared (R Square) and adjusted R squared (Adjusted R Square) to evaluate the model's suitability The adjusted R- squared value of 0.506 shows that the independent variables included in the regression analysis influence 91.7% of the variation in the dependent variable, the rest is due to variables outside the model and random errors

Evaluate the fit of the ANOVA model:

Squares df Mean Square F Sig

Total 135,165 224 a Dependent Variable: F_CL b Predictors: (Constant), F_KM, F_HT, F_TT, F_HL, F_DH, F_QH

The F-test sig value is 0.00 < 0.05, so the regression model is appropriate

Check the implicit assumptions of linear regression

Table 4.12 Model Summary of linear regression

Std Error of the Estimate Durbin-

The results of this table also provide the Durbin–Watson value to evaluate the phenomenon of first-order serial autocorrelation The value DW = 2.199 is in the range of 1.5 to 2.5, so the result does not violate the assumption of first-order serial autocorrelation (Yahua Qiao, 2011)

Based on the table, we see that the sig values of all variables are < 0.05, so these variables are meaningful in the regression model

The VIF coefficients of the above variables are approximately two => multicollinearity does not occur

The regression model is written as follows:

CL = 0,017TT + 0,015HT + 0,507 HL + 0,006DH + 0,565 QH + 0,041KM +e

Figure 4.1 Histogram of Dependent Variable

Specifically in the histogram above, Mean = -4.27E-15 = -2,718 * 10 -15 0.00000 close to 0, the standard deviation is 0.987, close to 1 Thus, the residual distribution is approximately normal, assuming the normal distribution of residuals is not violated

Figure 4.2 Normal P-P Plot of Regression Standardized Residual

In the chart above, we see that the residual data points are concentrated quite close to the diagonal Hence, the residuals have an approximately normal distribution, assuming the normal distribution of the residuals is not violated

The distributed data points are concentrated around the zero ordinate line and tend to form a straight line, assuming the linear relationship is not violated Specifically, with this data set, the distributed standardized residuals are concentrated around the zero ordinate line, so the linear relationship assumption is not violated

The customer-bank employee relationship model is a new model built based on research works of many authors worldwide

This model establishes a reliable and valid measure of relationship strength The concepts put forward in this model are also quite new compared to domestic research topics (such as customer personal interaction orientation and employee customer orientation), and the application of the model in practice Internationally, domestically and internationally, it is rarely tested

Based on selective inheritance from previous studies, this study researches and tests several factors that affect the customer-bank employee relationship, such as perceived customer benefits, time relationships, personal interaction orientation of customers and customer orientation of employees to suit the actual situation of the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch

The research results on this topic are similar to the research results of Bove and Johnson (2000), Matzler et al (1996), Johnston (1995), and Vavra (1997), incredibly reaffirming the findings of the study Le Thuy Thuy Tien (2015) includes explicitly six influencing factors: (1) Trust; (2) Customer support service; (3) Promotions and transaction costs; (4) Meet customer needs; (5) Public relations and (6) Customer care have a positive impact on the intensity and quantity of customer- bank employee relationships.

CONCLUSIONS AND POLICY IMPLICATIONS

Summary of analysis results

This study aims to identify factors that affect the quality of customer-bank employee relationships During the research process, the author relied on customer relationship theory, customer-bank employee relationship factors were built based on the customer-bank employee relationship quality model, which was developed in domestic and foreign studies This study presents a theoretical model of the customer- banker relationship for the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch This research is used to build and test a theoretical model with two steps: qualitative research and quantitative research Qualitative research is used to explore, adjust and build a model to measure the quality of the customer- banker relationship at the bank

The quantitative research process was conducted using a questionnaire to directly survey customers using services at the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch with a sample size of n = 300 selected to test the trapezoid and theoretical model The author has proposed and discussed the selection of scales as factors and tested them using the Cronbach Alpha reliability method and EFA exploratory factor analysis The theoretical model is tested through regression analysis with the support of SPSS 20.0 software Then, evaluate the influence of these factors on the quality of customer-banker relationships at the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch

The reliability analysis and EFA results show that the factors affecting the quality of customer-bank employee relationships at the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch include 06 components and 01 perceptual factor According to the analysis results from the original scales, through evaluating the Cronbach Alpha reliability coefficient and EFA factor analysis, we have found new factors (new scales) to establish a research model They are measuring the quality of customer-bank employee relationships at the Joint Stock

Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch These are entirely reliable and statistically significant scales

(1) Employee customer satisfaction: Measured by five observed variables (2) Public relations: Measured by three observed variables

(3) Trust: Measured by four observed variables

(4) Customer support service: Measured by four observed variables

(5) Promotion and customer care: Measured by three observed variables

(6) Satisfaction with service: Measured by three observed variables

(7) customer - bank employee relationship quality: Measured by four observed variables.

Discuss research results

The customer-bank employee relationship model is a new model built based on research works of many authors worldwide

This model establishes a reliable and valid measure of relationship strength The concepts put forward in this model are also entirely new compared to domestic research topics (such as customer personal interaction orientation and employee customer orientation) and the application of the model in practice Internationally, domestically and internationally, it is rarely tested

Based on selective inheritance from previous studies, this study researches and tests several factors that affect the customer-bank employee relationship, such as perceived customer benefits, time relationships, personal interaction orientation of customers and customer orientation of employees to suit the actual situation of customers with deposit relationships at the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch

The research results on this topic are similar to the research results of Bove and Johnson (2000), Matzler et al (1996), Johnston (1995), and Vavra (1997), incredibly reaffirming the findings of the study Le Thuy Thuy Tien (2015) includes explicitly six influencing factors: (1) Trust; (2) Customer support service; (3)

Promotions and transaction costs; (4) Meet customer needs; (5) Public relations and (6) Customer care have a positive impact on the intensity and quantity of customer- bank employee relationships.

Meaning and contribution of the dissertation

The above results have the following meaning:

Firstly, in terms of research method, this study contributes to the scale system measuring the quality of customer-bank employee relationships in Vietnam by adding a scale system measuring customer-bank staff relationship quality at the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch This helps academic and applied researchers in the field of banking services in Vietnam choose a scale system to conduct their research

Furthermore, this scale system can serve as a basis for forming a unified scale system in studies on the quality of customer-bank employee relationships On the other hand, it also plays a vital role in the field of customer behaviour research in Vietnam because, currently, one of the difficulties in this research field is the need for a basic measurement system at each business unit

Thirdly, researchers in the field of customer management can use, adjust, and supplement this measurement scale for research on the quality of customer-bank employee relationships

Finally, according to the results of this research, the quality of the customer- banker relationship at the Joint Stock Commercial Bank for Foreign Trade of Vietnam

- Tan Dinh branch is equal to 22 observed variables Other authors can adjust and supplement these observed variables to suit each market, each specific service industry, and each period Each school has its characteristics and policies, and each period is different.

Management implications

To increase the quality of the relationship between customers and bank staff at the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch, we need to focus on the following factors:

Firstly, customer confidence should be increased when dealing with bank staff because trust and confidence in the long term are still important factors Customers have relationships with banks for many purposes, motives, and reasons However, when competition is fierce among banks to attract customers, improving service quality is the top awareness and concern of banks, which is why the difference in service quality is high The services provided in the banking sector are similar; every bank has many policies to attract customers Choosing a bank now depends on the close relationship between the customer and the teller Creating trust and confidence from customers will be an essential factor to help banks attract customers with service quality because of two observations: (1) Customer transactions with banks are mainly in the financial sector, related to money and benefits, so trust will be one of the important factors when establishing a relationship; (2) Financial management (Deposits, credit) is complicated because it involves data and transparency, so, to some extent, trust helps customers feel secure when dealing with banks Besides, the risks occurring in the banking sector are also cautionary lessons for customers when choosing to transact with banks, avoiding cases of fraud and false signing that cause damage to customers

Second, public relations is a way to help increase customer-bank employee relationships By building community activities, customers will sympathize and accompany the bank for customers The friendliness of bank employees is formed through community programs, which creates the attraction of employees to customers Build public relations programs in the bank The Public Relations factor has the second most significant impact on customer relationships with bank staff The spillover effect from community activities and community responsibility through public relations work will help customers recognize the bank's responsibility to the social community and help customers have more empathy and understand better, and that is the message of the bank's companionship with customers

Third, regular customer care and building additional promotional programs will help increase the length of relationships with customers Through customer care programs, on the one hand, customers are encouraged and encouraged promptly; on the other hand, it is an opportunity for bank employees to pay more attention to their customers In addition, through customer care programs, employees will record the content that both parties are interested in Collect customer information to establish close relationships with customers, support and advise customers on questions and complaints about related products that the bank previously provided to customers Regularly performing customer care work will increase staff attention to customers, and customers will always feel that the bank staff's companionship with customers is practical Therefore, it will increase the length of transaction relationships with banks

Fourth, it better meets customer needs Customer needs are often diverse and abundant The purpose of the transaction may be minor, such as borrowing money, sending money, or making payments However, due to the high connectivity and connection between the services provided, creating many products and services to serve customers is essential to maximize customer convenience when transacting Besides, satisfactorily answering customer questions will increase customer trust and peace of mind

Fifth, ensure reasonable transaction costs In today's competitive strategy, price is no longer the leading advantage However, competition is becoming increasingly fierce, and more and more banks are appearing, giving customers more choices This gives customers many comparisons and choices when transacting with the bank Research results show that price is also a significant factor affecting the quality of customer relationships with employees Therefore, depending on each case, situation and specific time, the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch develops different price schedules and preferential customer policies

Regarding lending interest rates, deposit interest rates and service tariffs, the bank should develop an appropriate interest rate schedule for each customer and each type of product and service Market segmentation in order of priority for large and long-standing customers Long-time deposit customers and customers with large deposit balances can compensate for the difference in interest rates compared to the interest rates applied to regular customers Reduce or waive early withdrawal or re- borrowing fees when customers pledge their deposit books so that they feel cared for and have more rights, thereby strengthening customers' trust in the bank.

Conclusion, limitations, and future research directions

The thesis has delved into analyzing the theoretical framework related to the thesis and related domestic and foreign research projects On that basis, the author has proposed a research model and research hypotheses Besides that, the author delves into analysing and evaluating factors affecting the quality of customer and employee relationships at the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch through Cronbach Alpha, EFA, and regression analysis , Pearson correlation and evaluate the level of customer perception regarding each factor regarding the quality of the customer-bank employee relationship at Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch Through that, propose solutions to improve the quality of relationships between customers and employees at the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch

Like any research topic, this study, in addition to the results achieved both theoretically and practically, also has a few limitations:

Firstly, due to limitations in qualifications and research time, during the investigation and interview process to collect information, some customers may need help understanding the methods and goals of the research This will have a particular influence on the research results

Second, this study only evaluated the scales using the Cronbach Alpha reliability coefficient method, the EFA exploratory factor analysis method, and the regression model To better measure, evaluate scales and test theoretical models, it is necessary to use more modern methods and tools

Finally, this study only focuses on a narrow scope of research at the Joint Stock Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch The project has yet to research the quality of customer-bank employee relationships of other banks in the city for comparison, from which there will be competitive solutions This is a direction for further research

Based on the achievements and limitations of the topic, the author proposes the following research directions:

First, before conducting research at the stage of interviewing customers, the author should prepare the questionnaire better For example, the questionnaire should be more precise, the questions should be more concise, and the number of questions should be more It is necessary to prepare the qualitative research steps well and clarify the research objectives with customers so that they can answer more comfortably, and from there, the results will be more accurate

Second, future studies need to select a more significant number of samples because the larger the sample size, the higher the study's accuracy At the same time, better investigation methods, data collection, and data processing methods should be used to ensure the reliability and validity of measurement scales and the accuracy of research results

Finally, there is a need for more profound exploratory research to fully understand the factors that affect the quality of the customer-bank employee relationship and conduct research on a broader scale to study the quality of the customer-bank employee relationship Research the quality of customer-banker relationships of other banks in the city and in the territory of Vietnam for comparison, from which there will be competitive solutions

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We are conducting research and surveys on "QUALITY OF THE RELATIONSHIP BETWEEN INDIVIDUAL CUSTOMERS AND JOINT STOCK COMMERCIAL BANK - TAN DINH BRANCH" to continuously improve service quality as well as perfect customer service policies Every day gets better and better

We hope you will take a little time to answer the questions below The information you provide will greatly contribute to the success of this research

Please provide some of the following information

4 You are: □ Office worker □ Business, freelance

□ High school □ Intermediate school, college □ University, postgraduate

□ 3 - 7 million VND □ From 7.1 - 10 million □ From 10.1 - 20 million □ Over

1 Please indicate that you are transacting with the bank about:

□ Payment, card services □ Other: Remittance, foreign currency trading

2 Please indicate the number of times you have made transactions at Joint Stock Commercial Bank - Tan Dinh branch

□ First time □ 2nd time □ 3rd time □ 4th time □ 5th time or more

3 Please rate your level of agreement with each statement below and tick “ ” in the box you think is appropriate

1 = Strongly Disagree 2 = Disagree 3 = Neutral (Neither agree nor disagree) 4

Dealing with the staff of Joint Stock Commercial Bank for Foreign

Trade of Vietnam - Tan Dinh branch, I feel

2 I always believe in commitments when working with 1 2 3 4 5

3 The data provided by employees is accurate and confidential 1 2 3 4 5

4 I feel secure when dealing with the staff 1 2 3 4 5

Giao dịch với các nhân viên Ngân hàng TMCP - chi nhánh Tân Định, tôi cảm thấy

2 Staff always provide guidance and support during transactions

3 The information system the bank provides is helpful 1 2 3 4 5

4 Bank staff are always willing to assist when I need it 1 2 3 4 5

Transacting at Joint Stock Commercial Bank for Foreign Trade of

Vietnam - Tan Dinh branch, I feel

Responding to customers by staff

Dealing with the staff of Joint Stock Commercial Bank for

Foreign Trade of Vietnam - Tan Dinh branch, I feel

1 The staff always satisfactorily answered my questions 1 2 3 4 5

2 The staff responds well to suggestions when I request them and always listens to my suggestions

3 My requests are thoroughly resolved by the staff, and when an incident occurs, the staff always accompanies me to resolve it in a way that is convenient and beneficial to me

4 When I need assistance, the staff is always proactive in 1 2 3 4 5 communicating

5 The staff always gives me the most useful solution as well as understands and accurately grasps my needs

Public Relations Level of agreement

1 Employees are very active in participating in community activities 1 2 3 4 5

2 The staff is very friendly and accompanies customers 1 2 3 4 5

3 I have a good impression of the bank's customer-oriented support programs 1 2 3 4 5

4 The bank regularly appears in major local events

Promotion and customer care Level of agreement

1 The bank's promotional program is attractive 1 2 3 4 5

2 The programs are practical and interesting 1 2 3 4 5

3 Customer care program of Banking brings me a lot of joy 1 2 3 4 5

4 The bank's customer care program is rich and diverse 1 2 3 4 5

Quality of customer-banker relationship Level of agreement

1 I feel I have a very good relationship with Joint Stock

Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch

2 In general, the quality of the relationship between me and

Joint Stock Commercial Bank for Foreign Trade of Vietnam

- Tan Dinh branch makes me satisfied

3 Maintaining a relationship with Joint Stock Commercial

Bank for Foreign Trade of Vietnam - Tan Dinh branch helps me receive many incentives from the Bank

4 The longer I spend creating a relationship with Joint Stock

Commercial Bank for Foreign Trade of Vietnam - Tan Dinh branch, the more I trust the Bank

If you have any comments about issues when working at our office, please write them below:

Sincerely, thank you for your cooperation Wishing you much joy, health and success in life!

Statistical results of sample characteristics

Frequency Percent Valid Percent Cumulative

Cumulative Percent Valid 3 – 7 trieu dong 29 13,0 13,0 13,0

Kaiser-Meyer-Olkin Measure of Sampling Adequacy ,915

Bartlett's Test of Sphericity Approx Chi-Square 6258,765

Extraction Method: Principal Component Analysis

Rotation Method: Varimax with Kaiser Normalization a Rotation converged in 6 iterations

Kaiser-Meyer-Olkin Measure of

Initial Eigenvalues Extraction Sums of Squared Loadings Total % of Variance Cumulative % Total % of

Matrix a a Only one component was extracted The solution cannot be rotated

Scale Mean if Item Deleted Scale Variance if Item Deleted

Cronbach's Alpha if Item Deleted

Deleted Scale Variance if Item Deleted

F_CL F_TT F_HT F_HL F_DH F_QH F_KM

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

Model Variables Entered Variables Removed Method

Enter a Dependent Variable: F_CL b All requested variables entered

Square Std Error of the Estimate Durbin-Watson

Model Sum of Squares df Mean Square F Sig

Total 135,165 224 a Dependent Variable: F_CL b Predictors: (Constant), F_KM, F_HT, F_TT, F_HL, F_DH, F_QH

Standardize d Coefficients t Sig Collinearity Statistics

B Std Error Beta Tolerance VIF

N Minimum Maximum Mean Std Deviation

Tiêu đề	Relationship Quality Between Individual Customers and Joint Stock Commercial Bank - Tan Dinh Branch
Tác giả	Vũ Phạm Hải Thy
Người hướng dẫn	Nguyễn Thị Thu Trang, PHD
Trường học	Banking University of Ho Chi Minh City
Chuyên ngành	Finance - Banking
Thể loại	Graduation Thesis
Năm xuất bản	2024
Thành phố	Ho Chi Minh City

Định dạng
Số trang	97
Dung lượng	3,11 MB