Factors affecting the decision to choose to save money by individual client in nam viet commercial joint stock bank in ho chi minh city, viet nam

RESEARCH PROJECT BMBR5103 Factors affecting the decision to choose to save money by individual clients in Nam Viet Commercial Joint Stock Bank in Ho Chi Minh City, Viet Nam... This is w

RESEARCH PROJECT

(BMBR5103)

Factors affecting the decision to choose to save money by individual clients in Nam Viet Commercial Joint Stock Bank in Ho Chi Minh City, Viet Nam

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to understand more clearly about the psychology of customer transactions in bank deposits

Theoretical basis of the study of model based on the SERVQUAL measurement of service quality (Parasuraman, Zeithaml and Berry, 1985) and previous studies to apply in time 2013 The basic assumption of the measurement was that customers can evaluate a firm's service quality by comparing their perceptions with their expectations

The study was carried out in two steps as qualitative research and quantitative research The results analysis will show that factor of bank policies will affect to the most important decisions made by customer’s choice when deciding to save money in Navibank, followed by the

sympathy factor, an ability to satisfy of the bank and all the variables are related in the same direction with the decision of the customer’s choice

ACKNOWLEDGEMENTS

A completed study would not be done without any assistance Therefore, the author who

conducted this research gratefully gives acknowledgements to their support and motivation during the time of doing this research as a requirement of completing my Master of Business Administration

First of all, I would like to express my endless thanks and gratefulness to my supervisor

Assoc.Prof.Dr.Nguyen Phan His kindly support and continuous advises went through the

process of completion of my thesis Without his motivation and instruction, the study would have been impossible to be done effectively

A part from doing this, I would like to state my thanks to Open University Malaysia in

collaboration with HUTECH University, academic lecturers and staff at HUTECH Institute of

International Education, where brings this program to Vietnam for us be able to joint such a

great program

My special thanks approve to my parents for their endless love, care and have most assistances and motivation me I also would like to explain my thanks to my sister for her support and care

me all the time

Finally, my deeply thanks come to all members in my Class K08A with their kindly support

during time I joint this program

With Kindest Regards,

NGUYEN THY NGOC DUNG

LIST OF TABLES

Table 3.1: The Empathy’s Likert Scale……….32

Table 3.2: The Assurance’s Likert Scale……… 33

Table 3.3: The Reliability’s Likert scale………33

Table 3.4: The Tangible Facilities Likert scale……….34

Table 3.5: The Responsiveness Likert scale……… 35

Table 4.1: The Characteristics of the Study Sample………42

Table 4.2: The Cronbach Alpha of the measuring scales……….44

Table 4.3: The KMO index of the measuring scale……… 45

Table 4.4: The Empathy Component Matrix………46

Table 4.5: The Assurance Component Matrix……… ……… 46

Table 4.6: The Reliability Component Matrix……… ……… 48

Table 4.7: The Tangible Facilities Component Matrix……… ……….49

Table 4.8: The Responsiveness Component Matrix……… …… 50

LIST OF FIGURES

Figure 2.1: The integrated Gaps model of service quality……… 22

Figure 2.2: The 10 determinants of service quality……….….23

Figure 3.1: Research Process……… 30

Figure 3.2: The originally planned research model……… 35

Figure 4.1: The Gender Structure Analysis……… ……… 38

Figure 4.2: The Age Structure………39

Figure 4.3: Qualification Structure………40

Figure 4.4: The Income Structure……… 41

CONTENTS

ABSTRACT 1

ACKNOWLEDGEMENTS 2

LIST OF TABLES 3

LIST OFIGURES 4

CHAPTER 1: DISERTAION ITRODUCTION 8

1 The Necessity of Research Topics: 10

1.2 Research Problem: 11

1.3 Questions of the Research: 11

1.4 Research Objectives: 12

1.5 Subjects and Scope Of Research: 12

1.6 Research Methodology: 12

1.7 Practical Implications of The Research: 13

1.8 Layout of The Dissertation: 13

CHAPTER 2: LITERATURE REVIEW AND THEORETICAL STUDY 15

2.1 Theoretical Foundations of The Savings Deposit’ Products: 15

2.2 Basic theoretical for services, banking services, consumer behavior and the measurement model of service quality: 16

2.2.1 The concept of services: 17

2.2.2 Banking Services: 18

2.2.3 Consumer behavior and the bank selection:……… 18

2.2.3.1 Customer Behavior: 18

2.2.3.2 The bank selection of the customer: 21

2.2.4 The measurement model of service quality – SERVQUAL: 21

2.3 Previous research model: 25

2.4 Summary: 27

CHAPTER 3: RESARCH METHODOLOGY 28

3.1 Selection Methods: 28

3.2 Preliminary Research: 28

3.3 The Secondary Research: 29

3.4 Research sample dimension: 30

3.5 The concept studies, scales and the theory: 30

3.7 Data Collection: 34

3.8 The method of data analysis: 34

3.9 Summary: 35

CHAPTER 4: THE RESEARCH RESULTS ANALYSIS 36

4.1 Introduction: 36

4.2 Described Sample Statistical Analysis: 36

4.2.1 The Gender Structure Analysis: 36

4.2.2 The Age Structure Analysis: 37

4.2.3 The Qualification Structure Analysis: 37

4.2.4 The Income Structure Analysis: 38

4.3 The Characteristic of the Study Sample: 39

4.4 The analysis and assessment of customers on the factors affecting to choose theNavibank: 40

4.4.1 Assessment of the reliability scale: 41

4.4.2 The analysis of factors affecting decision to choose the Navibank: 41

4.4.3 Analysis on the factor measuring scale of the customer’s perception about the Empathy: 42

4.4.4 Analysis on the factor measuring scale of the customer’s perception about the Assurance: ………46

4.4.5 Analysis on the factor measuring scale of the customer’s perception about the Reliability: ………50

4.4.6 Analysis on the factor measuring scale of the customer’s perception about the Tangible

Faculties: 54

4.4.7 Analysis on the factor measuring scale of the customer’s perception about the Responsiveness……… ……… 58

4.5 Regression Analysis: 63

4.5.1 Regression models Development: 63

4.5.2 Evaluative appropriateness of the regression model: 64

4.5.3 Testing the appropriateness of the regression model: 65

4.5.4 The significance of the partial coefficients in the model: 65

4.5.5 Testing hypothesis: 66

4.6 Summary: 67

CHAPTER 5: CONCLUSION, LIMTAIONS AND RECOMENTDATIONS 70

5.1 Conclusions: 70

5.2 The several suggested polices recommendation: 70

5.2.1 The policy factors related to empathy: 70

5.2.2 The policy factors group related to bank policy: 72

5.2.3 Group policy factors related to the responsiveness: 72

5.3 The limitation of the thesis: 73

REFRENCE 74

APENDIX 1: THE RESARCH QUESTIONAIRES 75

APENDIXI: NDIVDUAL OPINONS QUESTIONAIRES 75

CHAPTER 1: DISSERTATION INTRODUCTION

1 The Necessity Of Research Topics:

Based on a reality survey of the behavioral of customer’s choice for savings deposits in the banks

as follows:

 The first case: The case of Ms Nguyen Thi Thu Hue (District 3, Ho Chi Minh City) is a typical; recently she went to the “T.” bank branch to withdraw the savings banks only by raising interest rates at 6.8% per year to switch to another bank willing to pay 8% interest for her "The tough economic times, lower deposit rates to 1% of the difference is a problem “Ms Hue said

 The second case: Ms Tran Thi Hai, District 8, Ho Chi Minh who has a savings coming due Often, she will enter the capital and interest to continue forward, but this time she quite hesitated The problem is that Ms Ha weigh while many banks have announced they are classified on group 1-2 from the National Bank that meaning the healthy banks, the credit growth in 2012 at a pretty Then she's bank savings, the staff kept saying not received official letters about this As a result, she is quite disturbed that banks silent or avoids questions about the grouping of credit growth

 The third case: Ms Nguyen Mai Lan Anh in Binh Thanh district, Ho Chi Minh City, said that banks in the group that does not matter to me, because deposit rates are equal and more importantly, she believe that the government will not let any banking collapse Therefore, the only problem is the attitude to serve the customer of the bank that will makes the customer satisfy

So, based on the above cases, we can find out the problems of the customer when they are so weigh to decide which bank that they will choose to save their money Furthermore, when Vietnam joined the WTO, more and more customers have more choice of banks with 100% foreign experience for hundreds of years with the services is more professional appearance, and then will compete more aggressively Therefore, the competitive challenges of the foreign banks

to domestic banks will be increasing According to a recent survey by The United Nations Development Program (UNDP, 2008), in collaboration with the Ministry of Planning and Investment in 2008, with 42% of enterprises and 50% of people interviewed said that when

financial markets open, they will choose to borrow money in foreign banks rather than domestic banks! Preliminary results of this study also indicate whether the banking market bustling with the number of new banks and banking services to a few more years, but there have been plenty

of customers to participate in survey respondents had changed bank transactions, or use the services of several banks at the same time

Therefore, to build the remittance behavior of individual customers, the banks need more information about the customer satisfaction as well as factors leading to the decision to select the bank to save money, to be the basis of planning strategies to improve the efficiency of capital mobilization

Thus, there should be a study to determine the factors affecting the deposits of bank customers to help answer the question: how to keep customers in an environment of increasingly fierce competition?

So that, we always eager to learn customer expectations when they dealing in Nam Viet Commercial Joint Stock Bank What factors affecting Nam Viet Commercial Joint Stock Bank to decide to save money and how to improve efficiency mobilization? This is why the subject of:

“Factors affecting the decision to choose to save money by individual clients in Nam Viet Commercial Joint Stock Bank in Ho Chi Minh City, Viet Nam.”

1.2 Research Problem:

In the business of banking, the mobilization capital and activity is often the most important However, in recent years, the State Bank has set up a number of measures the bank handling violations and monetary policies to curb inflation Practical problems have a huge impact on improving service quality, diversify products and expand its branch network, capacity and level

of bank officials

In this situation, the research objective posed by this subject is analyzed factors affecting most important to customer deposits at banks Then, it is the appropriate solution to enhance mobilization of Nam Viet Commercial Joint Stock Bank in a stable and sustainable demand for capital operating an efficient manner

1.3 Questions Of The Research:

In order to solve the problem posed research, the study was designed to find answers to the following:

- What factors affect customer deposits at Nam Viet Commercial Joint Stock Bank?

- The factors that affect the customer's deposit, the factors most influence on the decision to choose Nam Viet Commercial Joint Stock Bank savings deposits of customers every individual?

- There are differences between the various clients of gender, qualification, environmental work and income affect banks decide whether or not?

- Nam Viet Commercial Joint Stock Bank should implement measures to increase mobilization

of deposits from individual customers?

1.4 Research Objectives:

Based on the basis of answers to research questions to clarify research issues, this topic aims to achieve specific research objectives as follows:

- Analyze the factors that affect customer deposits at Nam Viet Commercial Joint Stock Bank

- Find out the proposed solutions and policies to increase capital mobilization effectively with low cost

- Discover the difference in the bank choices to deposit of the customers affecting in gender, qualifications, income and the environment

1.5 Subjects And Scope Of Research:

Study subjects: the individual customer to deposit money in Nam Viet Commercial Joint Stock Bank

Scope of the Study: Nam Viet Commercial Joint Stock Bank, Ho Chi Minh City, Viet Nam

1.6 Research Methodology:

This study was done in Nam Viet Commercial Joint Stock Bank through two steps:

(1) The preliminary studies using qualitative methods and,

(2) The secondary research method by using the quantitative method

+ Preliminary research: the qualitative method to identify the factors that affect customer deposit

at Nam Viet Commercial Joint Stock Bank The preliminary study was conducted through

discussion or interview duel 10 financial experts, the transaction manager or customer service manager Since then designed a questionnaire to interview customers with banking transactions + Based on the above information, the secondary research conducted by quantitative methods, using construction methods detailed questionnaire with 5-level Likert scale

+ After quantitative research, analyze collected data and identify factors that influence

customers' deposits in Nam Viet Commercial Joint Stock Bank, a number of in-depth interviews

will be conducted to understand the causes and look receive objective factors influence, from which conclusions and reasonable solution

1.7 Practical Implications Of The Research:

The study provides a number of practical implications for managers, staff working in particular Nam Viet Commercial Joint Stock Bank and across the whole system of Nam Viet Commercial Joint Stock Bank Specifically as follows:

 The research results help traders, who come into direct contact with customers to better understand customer behavior, thereby improve ourselves to better serve increasingly, this will help improve the bank's value in the eyes of their customers and to promote more customer come to the banks

 The results are also references to help the department related to the mobilization of new solutions to meet the increasingly diverse needs of customers in order to improve the efficiency of mobilization with the lowest cost

 At the same time, the research results are also references to the Board of Directors Nam Viet Commercial Joint Stock Bank proposed reasonable solutions to enhance reputation From that, will help customers comfortable when using the products and services of the Nam Viet Commercial Joint Stock Bank

1.8 Layout Of The Dissertation:

The Dissertation is divided into 05 chapters:

 Chapter 1: The Dissertation Introduction

Introduce the basis of the dissertation, research objectives, research questions, scope and object of study, research methodology, and practical implications of the study and structure of the dissertation

 Chapter 2: Literature Review and Theoretical Study

Theoretical foundations includes the theory of savings, the theory of services, banking services, consumer behavior and the measurement model of service quality

 Chapter 3: Research Methodology

Based on theoretical modeling studies, this chapter will define the appropriate scale to measure the factors determining the choice of bank savings deposits at Nam Viet Commercial Joint Stock Bank Presenting the research methods applied in the dissertation, describes the sample selection methods, sample of size determination, data collection methods and data analysis techniques

 Chapter 4: The Research Results Analysis

Presentation of analysis results on the basis of the data that was done using SPSS 16.0 software, the model identified factors affecting the deposits of individual customers using money product’s savings

 Chapter 5: Conclusion, Recommendation, and Limitation of the Research

Presentation of the conclusions of the study results, some policy suggestions to make

to improve efficiency mobilization as well as the limitations outlined topics and suggestions for further research

CHAPTER 2: LITERATURE REVIEW AND THEORETICAL STUDY

So, in the Chapter 1 that presented an overview of the research topic At Chapter 2, we will presents the theoretical basis for savings deposits product and remittance behavior of individual customers, the theory of banking services, consumer behavior and service quality model

“SERVQUAL” (Parasuraman, Zeithaml and Berry, 1985)

2.1 Theoretical Foundations of The Savings Deposit’s Products:

According to Dr Kieu M N (2007) , the author mentions that the Capital mobilization’s activity

is one of the major activities and most important of the Commercial Banks This activity will bring the capital to the banks and may perform other activities as providing credit and services to the banking

Dr Kieu M N also mentions that the Capital mobilization through a deposit account is a form of capital mobilization and brings the classic characteristics of individual commercial banks Due to the needs and dynamics of customer deposits are varied and different, to attract depositors, commercial banks have designed and developed a variety of different deposit products

However, with the research “Factors affecting the decision to choose to save money by

individual clients in Nam Viet Commercial Joint Stock Bank in Viet Nam.”, the research stops to capital mobilization through business financing saving deposit

Thus, let finding what is the “Saving Deposit” mean?

According to Dr Kieu M N.(2007) mentions that the Savings deposits are deposits of

individuals are sent into savings accounts, was confirmed on bankbook, the interest rate as prescribed by organization whom take deposits and insured under the provisions of law on deposit insurance

Let’s talk more clearly, a savings deposit account is a type of bank account in which a person can deposit his or her money and have it earn interest The savings deposit account is usually limited

in several ways, including how many times a person can make transactions from the account, or

in some cases how many times a person can make a deposit into the account per month

For example, Savings will often be deposited into a bank savings account where the funds will earn a nominal amount of interest and will be insured in most cases In the United States, bank savings and checking accounts are insured by the Federal Deposit Insurance Corporation or FDIC Savings accounts in countries other than the United States carry different terms that may

even include different currency deposit options Most major countries have their own versions of deposit insurance to protect the Savings accounts of the customers of financial institutions Savings represent an important part of an individual’s, as well as a nation’s, basic assets

In 2005, IPA investigators Ashraf N., Karlan D and Yin W designed the first formal

commitment savings product in collaboration with Green Bank of Caraga in the Philippines The SEED (Save, Earn, and Enjoy Deposits) account provided individuals with the opportunity to voluntarily commit to restricting access to their savings The terms of each commitment are customized, and individuals select either a savings goal date or amount Individuals made

continuous payments throughout their commitment period, and were restricted from withdrawing funds until they reached their self-specified goal Aside from this commitment feature, the SEED account was identical to Green Bank’s normal savings account Ashraf, Karlan and Yin

conducted a field experiment to test the effectiveness of the SEED account with a sample of 1,777 randomly selected Green Bank clients Individuals who were offered the SEED account, as well as individuals randomly assigned to a control group (which received the traditional savings account), were surveyed once at baseline and then again one year later in order to measure

changes in savings, attitudes and household economic decisions Researchers found an 81% increase in savings among those clients who had opened a SEED account after one year

compared to the control group These results suggest that formal commitment savings accounts have an important role to play in the accumulation of assets among the world’s poor

Term savings products: designed for individual customers or organizations have temporarily

idle cash to banks for the purpose of safe and profitable, but not necessarily used to plan deposits

in the future For customers who choose this form of deposits, the safety objectives and

convenience is more important than profit target

Recurring savings product: is savings products designed for individual customers and

organizations wishing to send money for the purpose of safety, profitability and establish plans

to use the money in the future For major customers of this type of deposit is the individual wants

a steady income and regular expenditure to meet monthly or quarterly Most customers prefer to choose this form of deposits that are workers, retired officers Their goal is important when choosing this form of deposit income is recurring Therefore, interest rates play an important role

to attract the customers

2.2 Basis theoretical for services, banking services, consumer behavior and the

measurement model of service quality:

2.2.1 The concept of services:

In economics, a service is an intangible commodity That is, services are an example of

intangible economic goods

According to Philip Kotler (2004): the service is the results of actions that a party may give the other party and mostly intangible and does not result in ownership of something Its products may or may not be associated with the physical product

The generic clear-cut and complete, concise and consistent definition of the service term reads as follows:

A service is a set of one time consumable and perishable benefits

- Delivered from the accountable service provider, mostly in close coactions with his internal and external service suppliers,

- Effectuated by distinct functions of technical systems and by distinct activities of

individuals, respectively,

- Commissioned according to the needs of his service consumers by the service customer from the accountable service provider,

- Rendered individually to an authorized service consumer at his/her dedicated trigger,

- And, finally, consumed and utilized by the triggering service consumer for executing his/her upcoming business activity or private activity

According to Wikipedia: In economics, the services are understood, which to be similar likely a goods, but it is immaterial There are products in favor of organic products and the products of swing of products and services, but most of the products in the range between product and

service goods The service has the following characteristics:

- Simultaneity: production and consumption occur simultaneously services

- Inseparability: service delivery processes as well as target sales service, so cannot hide the mistakes of the service

- Variability: is almost impossible to provide services exactly alike

- Intangibility: products and services are being executed Customer may not see, taste, touch, and smell before buying

- Perish-ability: The services cannot storage, which cannot check the quality before

supplying or supply, only right way from the beginning and do the right thing all the time

2.2.2 Banking Services:

By law the credit institutions in Section 1 and Section 7 of Article 20, dated 20/09/2010, Viet Nam: banking services that includes 3 content: accepting deposits, providing credit and payment services

According to the State Bank of Viet Nam, the foreign banks can provide various services about 1,000 customers, while domestic banks only supply about 100 small-scale services and facilities utility is not high

Banking services are provided currently popular include:

- Deposit service: the service pack is capital mobilization as savings deposits and demand deposits are mainly

- Services Loans (Credit): is lending services, including service packs for bank loans to generate income for the bank and make money for the economy

- Payment Services and abroad: including service packs for customers wishing to pay in the contract of sale or abroad, billing, collection or guarantee to the beneficiary and so on

- Money Transfer Service: Currently, this service is offered by most of the commercial banks, in the form of remittance from abroad through Western Union to Vietnam, remittances and domestic transfers

- Card Services: Banks are supplied in recent years as a means of replacing cash and credit payments This is a service that most banks are targeted as a main point service

- The other banking services such as trust services, financial consulting, account

management stock investors Many banks have also been provided, but not yet in common use

as a result of the survey sample; there are many other products and services that are common in the world, such as asset management for high-income individuals, safe management, it has not been provided in our banking market

2.2.3 Consumer behavior and the bank selection:

2.2.3.1 Customer Behavior:

Before understanding consumer behavior let us first go through few more terminologies:

 Who is a Consumer? Any individual who purchases goods and services from the

market for his/her end-use is called a consumer In simpler words a consumer is one who consumes goods and services available in the market Take an example - Tom might purchase a tricycle for his son or Mike might buy a shirt for himself In the above

examples, both Tom and Mike are consumers

 What is consumer Interest? Every customer shows inclination towards

particular products and services Consumer interest is nothing but willingness of

consumers to purchase products and services as per their taste, need and of course pocket Let’s go through the following example:

Both Maria and Sandra went to the nearby shopping mall to buy dresses for themselves The store manager showed them the best dresses available with him Maria immediately purchased two dresses but Sandra returned home empty handed The dresses were little too expensive for Sandra and she preferred simple and subtle designs as compared to designer wears available at the store In the above example Sandra and Maria had similar requirements but there was a huge difference in their taste, mind set and ability to spend

 What is Consumer Behavior? Consumer Behavior is a branch which deals with

the various stages a consumer goes through before purchasing products or services for his end use

There are in fact several factors which influence buying decision of a consumer ranging from psychological, social, and economic and so on The study of consumer behaviour explains as to:

- Why and why not a consumer buys a product?

- When a consumer buys a product?

- How a consumer buys a product?

Thus, there are many different definitions of consumer behavior Standing on the field of view and different subjects, will be have different perspectives on consumer behavior For example,

let’s point to the Sales dimension; they will look at consumer behavior point of sale While in the promoting dimension - the communication is recognized consumer behavior plays active role in the promotion and communication

According to the American Marketing Association, "consumer behavior is the interaction

between these factors stimulates awareness of the environment and human behavior through human interaction that change lives them."

According to Jim Blythe (2008), "Consumer behavior is the starting point for all marketing planning and this book provides the necessary insights to understand what makes people buy, and buy again."

According to Ray Wright (2006), "Customers' behaviors are actions directly related to obtaining and Consumer Behavior is more relevant than ever for today’s business."

According to Rebecca Haynes and Don O'Dougherty (2007), "Consumer behavior is the way that consumer act or behave when looking for, buying and using the products When the businesses want to sell the products to the consumers, they look for way to find out how consumers are likely to behave, and why they art in this way."

Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society It blends elements from psychology, sociology, social anthropology and economics It attempts to understand the

decision-making processes of buyers, both individually and in groups It studies characteristics of individual consumers such as demographics and behavioral variables in an attempt to understand people's wants It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general

From the above definition, we can understand simple "customer behavior including thinking and feeling that people have and the actions they perform in the process of shopping and consumer banking products services " Factors such as feedback from other consumers, information on product quality - service, price, packaging, appearance products, promotional activities,

promotions and so on, that are can affect feeling, thoughts and behaviors of customers

2.2.3.2 The bank selection of the customer:

According to Goulrou Abdollahi, 2008, when customers need to choose a bank transaction, they will compare them between the banks Selection decisions are based on the level of form

carefully when considering options, and customers feel about the different banks Eventually, they will find a bank like the best private opinion For information about the bank convinced that they collected before going to decide that they will arise the interesting psychological So they will loyal to the bank that they chose

2.2.4 The measurement model of service quality – SERVQUAL:

According to Parasuraman et al is considered the first to study the quality of service in a specific and detailed in the marketing arena with the introduction of model 5 gap in quality:

The key point for each gap can be summarized as follow:

- Customer gap: the difference between customer expectation and perceptions - the

services quality gap

- Gap 1: the difference between what customer expected and what management

- Gap 2: the difference between management's perceptions of customer expectation and translation of those perceptions into the service quality specification and designs

- Gap 3: the difference between specification or standards of service quality and the actual service delivered to the customer

- Gap 4: the difference between services delivered to customer and the promise of the firm

to customer about its service quality

Figure 2.1: The integrated Gaps model of service quality

Applications of the Gaps Model:

First of all the model clearly determines the two different types of gaps in service marketing, namely the customer gap and the provider gaps The latter is considered as internal gaps within a service firm This model really views the services as a structured, integrated model which

connects external customers to internal services between the different functions in a service organization Important applications of the model are as follows:

Figure 2.2: The 10 determinants of service quality

Therefore, the researchers made SERVQUAL scale consists of 5 components with 20 observed variables, specific components as follows:

1 Tangibles: Physical facilities, equipment and appearance of personnel

+ The company is equipped with modern equipment

+ The company has been eye-catching layout

+ Employees companies look neat and elegant

+ Documents relating to the product, such as leaflets and all the descriptions with attractive

2 Reliability: Ability to perform the promised service dependably and accurately

+ When companies promise to do something in particular on time or not?

+ When you encounter obstacles, companies are really interested in solving this problem?

+ The company has made the right service in the first time

+ The company offers its services on time committed

+ The company has focused on working and not to make errors in the process?

3 Responsiveness: Willingness to help customers and provide prompt service

+ The company's employees have to know exactly what the service is done

+ Employees of the company have made a quick service

+ Employees of the company are always ready to help you

+ Company staff have ever so busy that they did not meet the requirements

4 Assurance (including competence, courtesy, credibility and security): Knowledge and

courtesy of employees and their ability to inspire trust and confidence

+ The behavior of employees of the company made you trust or not?

+ Staff of the company is polite and welcoming with you

+ Company staff has expert knowledge to answer your questions

5 Empathy (including access, communication, understanding the customer): Caring and

individualized attention that the firm provides to its customers

+ The company always pays special attention to you

+ The company has staff that cares about you

+ The company takes your benefit that is their mind

+ Company staff understands your needs

+ Company working on the convenient time

In fact, SERVQUAL measure includes three segments First two segments, each segment is 22 observed variables measuring the quality of service that customers expect and perceive reality The variables used 7 point Likert scale Difference (except for the expected sense) denotes evaluation of service quality This measurement model is called non-assert (disconfirmation model) The 3rd segment of customer requirements assessment of five key components

After much testing and research applications, SERVQUAL is recognized as a valid scale theory and practice However, there is still much debated, criticized, questioned this scale, especially in terms of generality and quality measurement effect One thing that can be seen is the

SERVQUAL measurement procedures rather lengthy Thus, emerged a variant of SERVQUAL

is SERVPERF

This scale was Cronin & Taylor, 1992, the SERVPERF led by Thongsamak, 2001 introduced, determine service quality by measuring only perceived quality of service (instead of measuring the perceived quality and expectations as SERVQUAL ) The two men said that service quality is best reflected by the perceived quality without quality expectations as well as evaluating the weight of the 5 components

Note that, due to origin SERVQUAL scale and components of observed variables keeps

SERVPERF scale as SERVQUAL This measurement model is called the perception model

Both disconfirmation model and perception model comments are the following research using It

is worth mentioning that the results of the study showed that hard to conclude that the model is not correct or even more accurate

2.3 Previous research model:

There have been many research and application of models of service quality Parasusaman and colleagues to measure service quality, customer satisfaction The research has practical

significance to help enterprises and suppliers to better understand the quality of services to better serve our customers in the market economy

At February/ 2011, the author – Ms Pham Thi Phuong Thao, Ho Chi Minh City Open University with the study "Factors influencing the decision to choose bank deposits savings of individual customers" This study was carried out at the branch, trading department of banks in Tien Giang province includes 6 factors affecting banks decide to save money include: (1) banking brand , (2) promotion , (3) quality of service , (4) the convenience , (5) Online banking channel , (6) interest rates According to the regression analysis showed Promotions factors plays an important role in decision-making banks choose to send customers savings of individuals in Tien Giang province, Vietnam This may explain why , in August, 2/2011 the inflation rate was 18.58 % , while the real interest rate in banks is 14 % , that money is being lose value and people lose confidence in the Vietnamese currency Moreover, at that time the commercial banks lack a capital and

illiquidity So Promotion is also a legal risk by banks to raise deposit rates of customers, to retain customers withdraw moved from one place to another, ensure stability of funding

In October, 2011, the author – Bo Thi Thuy Lien- applications of Parasusaman measurement models of service to the community and the study of "the factors affect customer satisfaction using savings services Researching of the Vietinbank situation in the area of Ho Chi Minh City" Research Model initially included 5 factors affecting satisfaction: (1) response, (2) reliability, (3) empathy, (4) tangible media, (5) assurance Analyze model results in 3 shows the influence factors: (1) assurance, (2) understanding, (3) means tangible factors which guarantee (check account information quickly ; office hours to be followed, neatly dressed staff , courteous , knowledgeable tellers to answer questions; publicly certificates of deposit insurance ; customers feel safe when the transaction; The Vietinbank promise made to customers) the most powerful influence to customer satisfaction when selecting savings deals of the Vietinbank Meanwhile reliability factors (layout tellers, fees) also not affect customer satisfaction According to its author may be due Vietinbank's largest banks, prestigious brands in banking Vietnam, so when dealing with customers and banks have absolute confidence, so this does not affect the pattern of the study authors

In April 2010, the Authors - B Tamil Mani, S Arun Kumar and S Prabhakaran, also apply the Parasusaman measurement models of “influence of Service Quality on Customer Satisfaction” in India Banking Research Model initially included 5 factors affecting satisfaction: : (1)

responsiveness, (2) reliability, (3) empathy, (4) tangible , (5) assurance The extent of the quality

disconfirmation in five dimensions is based on the order from the lowest mean to the highest mean, as follows: tangibles (.684), empathy (.619), responsiveness (.378), reliability (.243), and assurance (.336) Since all quality disconfirmation scores were positive, the subjects’ perceptions (actual) were greater than expectations and the subjects were satisfied with banks service quality

in varying degrees

2.4 Summary:

In Chapter 2, presents an overview of the capital mobilization services, the theoretical basis of service, customer behavior, service quality model and the previous studies related to the topic There are many researches and application of service quality models of Parasuraman and his colleagues to study satisfaction, customer satisfaction needs to get more customers in the

selection of banks, however, the behavior options may vary depending on the economy

In the next Chapter 3, will presents the proposed research model, research methodology, methods

of data analysis were collected using quantitative methods

CHAPTER 3: RESEARCH METHODOLOGY

In the above, Chapter 2 presents an overview of the theoretical basis related to the topic of

research before deciding on savings bank deposits

So, Chapter 3 presents the proposed research model, research methods used to develop and evaluate the measurement scale research concepts and analysis methods of data collected

3.1 Selection Methods:

With theoretical foundations in the previous chapter, this chapter will detail the steps to

undertake research

Two steps are research (1) preliminary research and (2) secondary research, done by the method

of qualitative and quantitative research methods, data collected from the questionnaires by

subjects’ self-survey response

Figure 3.1: Research Process 3.3 The Secondary Research:

The Secondary research is done by the quantitative research methods to test the model scale in the research through questionnaire survey

The research’s table design included questions related to the factors affecting the choice to send savings of individual customers in the Navibank, Ho Chi Minh City The client's responses are quantified by 5 degree of the Likert scale from (1) totally disagree to (5) strongly agree

Questionnaires will be the author and colleagues carried out by the direct interviews with

customers who are dealing the money saving with Navibank, from 18-year-old customer and older

3.4 Research sample dimension:

According to the experience of the researchers said that if the use of factor analysis method, the minimum sample dimension from 100-150 (Hair & CTG, 1998)

Also according to Bollen (1989) must be greater than the number of observations (at least) 5 times the number of variables The survey in this research service quality scale with 20 variables, such as the number of observations (samples) will be ≥ 100 To sample more representative cases and to avoid collecting surveys are not valid, the authors selected sample dimension n = 120 for survey The sample dimension handled included 111 samples

3.5 The concept studies, scales and the theory:

The model originally planned study includes five basic components measurement model based

on service quality and the previous studies are: empathy, assurance, reliability, tangible and the ability of responsiveness to the impact of the individual customers decided to send the money savings of the Navibank in Ho Chi Minh City

- The Empathy: showing kindness, personal attention to each client

- Hypothesis 1 (H1): While bankers have an interest in more customers than the decision of the customer to save money for the Navibank is more higher, in the other words, the empathy has the relationship in the same way with the decision for savings deposits of individual customers in the Navibank

- The Empathy of the Individual Customers is denoted as “E” Therefore, the scale of the Empathy of the Individual Customer has 4 variables observed characteristics indicate concern for the Navibank The author uses from E1 to E4 notation for the observations on 4 variables The observed variables are measured by Likert scale

Variables Variable's questions

E 1 Professional security staff

E 2 Transactors are friendly, considerate and honest

E 3 Having the considerate to customers

E 4 The after-sales services are good and flexible

Table 3.1: The Empathy’s Likert Scale

- The Assurance: knowledge, expertise and elegant style of the service staff, the ability to make customers trust, peace of mind when dealing with banks

- Hypothesis 2 (H2): The bank’s staff as shown professionalism will create more confidence, peace of mind for customers to bank transactions, or in other words, the assurance has the

relationship in the same way with the decision for savings deposits of individual customers in the Navibank

- The Assurance of the Bank’s Staff is denoted as “A” Therefore, the scale of the Assurance of the Bank’s Staff has 3 variables observed characteristics indicate concern for the Navibank The author uses from A1 to A3 notation for the observations on 3 variables The observed variables are measured by Likert scale

Variables Variable's questions

A 1 Professional qualifications of staff

A 2 Savings deposits are participating the insurance

A 3 Confidentiality of customer information

Table 3.2: The Assurance’s Likert Scale

- The Reliability: the ability to make appropriate service and exactly what commitment and promise

- Hypothesis 3 (H3): the Reliability has the relationship in the same way with the decision for savings deposits of individual customers in the Navibank

- The Reliability is denoted as “R” Therefore, the scale of the Reliability has 4 variables

observed characteristics indicate concern for the Navibank The author uses from R1 to R4 notation for the observations on 4 variables The observed variables are measured by Likert scale

Variables Variable's questions

R 1 Reasonable interest rates

R 2 The fees incurred in the process of using service nature of business, just to

compensate costs

R 3 The bank's security

R 4 The reputation of the bank

Table 3.3: The Reliability’s Likert scale

- The Tangible Facilities: external manifestations of physical facilities, equipment, personnel and materials, tool information

- Hypothesis 4 (H4): the facilities, modern equipment or tidy outfits staff will create greater convenience for customers to deposit transactions, or in other words, the Tangible Facilities has the relationship in the same way with the decision for savings deposits of individual customers in the Navibank

- The Tangible Facilities is denoted as “T” Therefore, the scale of the Tangible Facilities has 4 variables observed characteristics indicate concern for the Navibank The author uses from T1 to T4 notation for the observations on 4 variables The observed variables are measured by Likert scale

Variables Variable's questions

T 1 The outfits employees are elegant, tidy

T 2 The modern facilities and equipment

T 3 The bank has a large service network

T 4 The bank distributed evenly and convenient for the transaction

Table 3.4: The Tangible Facilities Likert scale

- The Responsiveness of banks: the desired level and ready to serve our customers in a timely manner

- Hypothesis 5 (H5): The Responsiveness of banks has the relationship in the same way with the decision for savings deposits of individual customers in the Navibank

- The Responsiveness of bank is denoted as “P” Therefore, the scale of the Tangible Facilities has 5 variables observed characteristics indicate concern for the Navibank The author uses from P1 to P5 notation for the observations on 5 variables The observed variables are measured by Likert scale

Variables Variable's questions

P 1 The fast transaction implementation

P 2 In addition to savings deposit rate, also has participated in a lucky draw

P 3 Simple and easy procedures

P 4 Having many flexible products

P 5 The minimum deposit

Table 3.5: The Responsiveness Likert scale

3.6 The Research Model:

Figure 3.2: The originally planned research model

3.7 Data Collection:

In 120 questionnaires were collected by the author, with 9 invalid due to incomplete answers by selecting a single answer to apply for all questions The invalid version was rejected As a result, the sample dimension of 111 samples is used for the research

3.8 The method of data analysis:

 Firstly, the data is cleaned

 Secondly, the encrypted data is processed with the Frequency technology of SPSS program to find characteristics of the research sample (the customer profile survey participants such as gender, age, education level, income)

 Thirdly, data were included in the analysis the Cronbach Alpha reliability

coefficient for preliminary assessment scales to determine the degree of correlation between the questions, as the basis to reject the observed variables, the scale is not satisfactory

 Fourthly, the data were analyzed with factor analysis techniques to explore EFA

to test the correctness of the observed variables used to measure the composition

of the scale EFA Results for value analysis to identify distinguishing the concept

of research

 Fifthly, the data are included in the correlation analysis and regression to test the suitability of the research model, to test the hypothesis clearly identifies the impact of each determinant to choosing the Navibank to send the customer's savings

 Finally, the model is tested in groups to determine the status of customer

evaluation

3.9 Summary:

The Chapter 3 presented the research process with the steps taken in a coherent way The content

of this chapter detailed how to collect samples, identify the scales and assumptions for variables

in the model and the proposed the research model

In Chapter 3, there also presents the econometric methodology used to test the model used in this thesis: the method described statistical tests, assessment scales using Cronbach Alpha reliability coefficient (CA), exploring factor analysis (EFA)

In the next, the Chapter 4 will be presented the information of an analysis method

through the SPSS 16.0 software for the Windows and the research results

CHAPTER 4: THE RESEARCH RESULTS ANALYSIS

4.1 Introduction:

In Chapter 3, there has presented the methodology of the study subjects Up next in Chapter 4,

we would like to present the evaluation results, complete the scale and the inspection results as well as theoretical modeling assumptions made They also present some descriptive analysis of the sample, the results of quantitative scales

4.2 Described Sample Statistical Analysis:

The samples were taken by the method of convenience Information about the characteristics of the study sample is shown in the table above They are the customers who are trading the saving products of Navibank in Ho Chi Minh City

4.2.1 The Gender Structure Analysis:

The customers in the sample are 33.3% of male and 66.7% of female using the saving products and services in Navibank This is in accordance with Vietnam's culture that women often

represent families dealing with banks more than men

Figure 4.1: The Gender Structure Analysis

4.2.2 The Age Structure Analysis:

Age structure of the sample showed that the sample rate of the younger generation who are of working age with stability incomes stability (from 25 to over 40 years of age) accounted for 93%

Figure 4.2: The Age Structure

This group is sensitive in assessing and adapting to the high utility improvements in banking transactions So their evaluation results on the scale will bring high representative Here is the

advantage of the obtained samples

4.2.3 The Qualification Structure Analysis:

The sample rate has the majority university by 47 %, the rest are on master, diploma and so on

Figure 4.3: Qualification Structure

4.2.4 The Income Structure Analysis:

In the samples, the customers have the income 5 million VND per month and over that are mostly accounts for about 85%; Group customers have the income levels of less than 5 million

VND monthly accounts for about 15%

Figure 4.4: The Income Structure

4.3 The Characteristics of the Study Sample:

The Individual Information N = 111 samples

The Gender