IMPACT OF INTERNET BANKING SERVICE ON CUSTOMER SATISFATION IN VIETCOMBANK A CASE STUDY OF VIETCOMBANK BINH TAY BRANCH In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION In International Business By Ms : Huynh Thi Diem Trang ID : MBA06038 International University - Vietnam National University HCMC September 2014 IMPACT OF INTERNET BANKING SERVICE ON CUSTOMER SATISFATION IN VIETCOMBANK A CASE STUDY OF VIETCOMBANK BINH TAY BRANCH In Partial Fulfillment of the Requirements of the Degree of MASTER OF BUSINESS ADMINISTRATION in International Business By Ms : Huynh Thi Diem Trang ID : MBA06038 International University - Vietnam National University HCMC September 2014 Under the guidance and approval of the committee, and approved by all its members, this thesis has been accepted in partial fulfillment of the requirements for the degree. Approved: ---------------------------------------------Chairperson ---------------------------------------------Committee member ---------------------------------------------Committee member --------------------------------------------Committee member --------------------------------------------Committee member --------------------------------------------Committee member Acknowledgment First and foremost, I would like to express my deepest thanks to my advisor – PhD. Le Van Chon for his support and guidance throughout my thesis writing. I am sure it would have not been possible without his help. Secondly, I would like to send my sincere appreciation to professors and lecturers in Master course – International University for teaching and training me during 2 years which provided to me a lot of precious knowledge. Thirdly, I am grateful to all customers of Vietcombank who provided valuable data during my survey. If there is no input data they contributed, the thesis can’t be completed today. Last but not least, I would like to express my sincere thanks to my parents for their unceasing encouragement and support me during my hard working time on this thesis. i Plagiarism Statements I would like to declare that, apart from the acknowledged references, this thesis either does not use language, ideas, or other original material from anyone; or has not been previously submitted to any other educational and research programs or institutions. I fully understand that any writings in this thesis contradicted to the above statement will automatically lead to the rejection from the MBA program at the International University – Vietnam National University Ho Chi Minh City. ii Copyright Statement This copy of the thesis has been supplied on condition that anyone who consults it is understood to recognize that its copyright rests with its author and that no quotation from the thesis and no information derived from it may be published without the author’s prior consent. © Huynh Thi Diem Trang / MBA06038 / 2012-2014 iii Table of Contents List of Tables ..................................................................................................................... vi List of Figures ................................................................................................................... vii Abstract ............................................................................................................................ viii Chapter one – Introduction ..................................................................................................1 1. Background ........................................................................................................1 2. Rationale for the study .......................................................................................3 3. Problem Statement .............................................................................................3 4. Objectives ...........................................................................................................4 5. Research Questions ............................................................................................4 6. Scope of the study ..............................................................................................5 7. Structure of the study .........................................................................................5 Chapter two – Literature Review .........................................................................................6 1. Basic Concepts ...................................................................................................6 1.1. Customer Satisfacion (CS) .....................................................................6 1.2. Service Quality .......................................................................................7 1.3. Internet Banking .....................................................................................9 1.4. Relationship between Service Quality and Customer Satisfacion .......12 2. Empirical Studies .............................................................................................14 3. Suggested Conceptual Model ...........................................................................17 Chapter three – Methodology ............................................................................................21 1. Sampling techniques and Sample size..............................................................21 2. Research Instrument .........................................................................................21 3. Data Collection Procedures ..............................................................................22 3.1. Primary Data .......................................................................................22 3.2. Secondary Data ...................................................................................23 4. Data analysis.....................................................................................................23 Chapter Four – Data Analysis and Results ........................................................................26 1. About Vietcombank Binh Tay Branch .............................................................26 2. Sample Demographics ......................................................................................31 iv 3. Assessing scale and research model .................................................................35 3.1. Assessing scale reliability by Cronbach’s Alpha ................................35 3.2. Descriptive Statistic ............................................................................40 3.3. Exploratory Factor Analysis (EFA) ....................................................44 3.4. Correlations between variables ...........................................................48 3.5. Hypotheses testing ..............................................................................50 3.6. Linear Regression Equation ................................................................52 3.7. Anova Analysis ...................................................................................53 Chapter Five – Conclusion and Recommendations ...........................................................55 References ..........................................................................................................................58 Appendix ............................................................................................................................62 v List of Tables Table 1. List of previous studies ...................................................................................... 14 Table 2. Independent variables (indicators) .................................................................... 24 Table 3. Total revenue of VCB Binh Tay from 2009-1st half 2012 .............................. 28 Table 4. Total number of new I-Banking users of VCB Binh Tay from 2011-2013 ......... 29 Table 5. Respondent Characteristics ............................................................................... 30 Table 6. Cronbach’s Alpha of independent variables scales ........................................... 36 Table 7. Cronbach’s Alpha after rejecting CS4 item ....................................................... 38 Table 8. Cronbach’s Alpha after rejecting CS6 item....................................................... 39 Table 9. Descriptive Statistics.......................................................................................... 41 Table 10. KMO and Bartlett's Test .................................................................................. 44 Table 11. Exploratory Factor Analysis (EFA) Results .................................................... 45 Table 12. Total Variance Explained ................................................................................ 46 Table 13. Correlations ..................................................................................................... 48 Table 14. Coefficients ...................................................................................................... 51 Table 15. Model Summary ............................................................................................... 53 Table 16. ANOVAb ........................................................................................................... 54 vi List of Figures Figure 1. Conceptual Model ........................................................................................ 19 Figure 2. Organization Structure of VCB Binh Tay ....................................................... 27 Figure 3: Total revenue of VCB Binh Tay from 2009 to1st half 2012 ........................... 29 Figure 4: Total number of new I-Banking users of VCB Binh Tay from 2011-2013 ... 30 Figure 5: Age ranges ....................................................................................................... 33 Figure 6. Income ranges ................................................................................................. 34 vii Abstract The purpose of this study is to explore the internet banking service dimensions that will have the impact on customer satisfaction of Vietcombank customers. A quantitative research is applied with survey questionnaires distributed to respondents at bank counters.There are eventually 211 responses that are used as input data. Collected data are processed in the statistical software SPSS; the consistency cofficients measured with cronbach’s Alpha for scaling test and Exploratory Factor Analysis (EFA) were used. Results show that Web design, Customer service, Assurance, Preferential Treatment and Information Provision are the important factors that have the impact on customer satisfaction. While Assurance is the most significant factor, followed by Customer service, Preferential treatment, Information Provision and Web design respectively. It is found that, generally, customer satisfaction is not too high, just above average. The findings suggest that banks should focus on main factors, especially Assurance, in specific plans to develop services and enhance quality for higher satisfaction of customers from this service. Keywords : Customer Satisfaction, Internet Banking Service. viii CHAPTER ONE - INTRODUCTION 1. Background In today’s world of intense competition, one of the keys to competitive advantage is delivering high quality services and enhancing customer satisfaction (Ismail, Made and Francis, 2009; Shemwell, Yavas and Bilgin, 1998). Service quality has been identified as the ultimate goal of service providers (Sureshchandar, Rajendran and Anantharaman, 2002). Service quality and customer satisfaction are inarguably two concepts at the crux of the marketing theory and practice (Spreng and Mackoy, 1996). Today, many financial service organizations are rushing to become more customer focused (Peppard, 2000). Technological developments particularly in the area of telecommunications and information technology are revolutionizing the banking industry. The internet has been exploited as a means to provide e-services. Many banks try to provide a quality online service to satisfy their customers. These banks are introducing internet banking as an assurance to their customers that they will be able to maintain a competitive quality of service in the future, in efforts to avoid losing their customers (Rod et al. 2009). Offering internet banking is no longer regarded as a competitive advantage but a competitive necessity (Gan et al., 2006, as cited in Rod et al. 2009). With the popularity of computers, easy access to Internet and World Wide Web (WWW), Internet is increasingly used by banks as a channel for receiving instructions and delivering their products and services to their customers. -1- Stiff competition in banking sector is forcing the banks to become customer friendly and customer oriented. Thus the customer satisfaction has become more important with the increasing competition. The modern banking has become customer-driven and technology-driven. Driven by the challenges of competition, rising customer expectations and shrinking margins, banks have been using technology to reduce cost and enhance efficiency, productivity and customer convergence. Technology-intensive delivery channels, like Automated Teller Machines (ATMs), internet banking, tele-banking and mobile banking etc., have created a win-win situation by extending greater convenience and multiple options for customers while providing tremendous cost advantages to the banks (Shainesh and Choudhary, 2004). During the last decade, technology has been dramatically transforming the banking activities in Vietnam. The banking sector in Vietnam has witnessed intensive competition in recent years. Since becoming a member of the World Trade Organization (WTO) in 2007, the government has been carrying out the commitments of trade liberalization policies, which has encouraged some international banks and private sector institutions to intensify their activities in the banking sector. Customers are also increasingly becoming sophisticated as they have access to the latest forms of delivery channels (such as the ATM, internet banking, etc.). Consequently, many financial institutions have to focus on increasing customer satisfaction and customer retention through improved quality of their services. -2- The rapid growth of internet banking in recent years is a clear indication of consumer acceptance of this media. However, the impact of internet banking on customer satisfaction in Vietnam is yet to be examined as few studies have addressed this issue. This study thus aims to fill the gap in the literature by focusing on the impact of internet banking service quality on customer satisfaction with a case study of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) at Binh Tay Branch. 2. Rationale for the study The aim of this research is to study the level of customer satisfaction about the quality of Vietcombank online banking services to identify whether customers intend to revisit the banking site and to maintain a lasting relationship with it or not. From a theoretical viewpoint, this research enriches the literature that has explored the concept of perceived quality of online services. From a managerial point of view, it points to the bankers the importance of promoting satisfaction factors which could produce favorable behavioral intentions among customers. 3. Problem statement Although there has been a rapid diffusion of new technology applications in banking sector in Vietnam, internet banking services have not been widely adopted by bank customers. This may be due to lack of trust, poor customer’s attitude and perceived risk towards the services. -3- When judging the quality of the provided internet banking service, customers consider a lot of factors which influence their judgment. For some customers the response and efficiency of the service providers would be of greatest importance, for others the security and privacy issues might be more important, and still for others what matters most may be the website design and ease of use. In reality, customers have different expectations and requirements. 4. Objectives The study aims at enriching the knowledge and understanding of factors affecting customer satisfaction of internet banking service in Vietcombank. Specifically, the main objectives of the study are: - To identify what main factors of internet banking service impact customer satisfaction. - To evaluate the extent of their impacts on customer satisfaction about internet banking service quality - To identify the level of satisfaction of customers towards Vietcombank internet banking service. 5. Research Questions: In order to achieve those 3 objectives, this study aims to answer the following research questions: 1. What are the major factors affecting to customer satisfaction in using internet banking service? 2. How do these factors impact customer satisfaction in internet banking service quality? -4- 3. What is the level of customer satisfaction towards the quality of Vietcombank online banking service? 6. Scope of the study The study concentrates on customer attitude and their satisfaction level of using internet banking services provided by Vietcombank. Due to time, resource constraints, the author could not carry out the survey in all branches of Vietcombank countrywide, so that the study is limited to Vietcombank - Binh Tay Branch located in district 6, Ho Chi Minh City. 7. Structure of the study This study is organized into five chapters. The Introduction, which is Chapter One, consists the background of the study, rationale, statement of the problem, the main and specific objectives of the study, research questions and how the study is organized. Chapter Two discusses literature related to the study and introduces the framework while research methodology is discussed in chapter Three. Chapter Fourth presents the data and analysis. Finally, Chapter Five presents the summary of findings, conclusions and provide recommendations. -5- CHAPTER TWO - LITERATURE REVIEW 1. Basic Concepts 1.1.Customer Satisfaction (CS) Customer satisfaction (CS) has received numerous attention and interest among scholars and practitioners alike because of its role as an important variable of business strategy in this very competitive market (Lovelock and Wirtz, 2007). Since the early 1960’s to date several researches have been conducted on customer satisfaction by different researchers. Infact in the words of Parker and Mathews “customer satisfaction has been fundamental to the marketing concept for over three decades” (Parker and Mathews, 2001). Customer satisfaction has been traditionally defined as “an evaluative judgment prior to making a choice, about any particular purchase decision” (Oliver, 1980). Pairot (2008) also defined Customer satisfaction as the company's ability to fulfill the business, emotional, and psychological needs of its customers. In that definition he acknowledged that customers usually have varied levels of satisfaction since they have different attitudes and experiences as perceived from the company. According to Churchill and Surprenant (1982), customer satisfaction can be defined as a “disconfirmation paradigm” since it is a result of confirmation/disconfirmation of expectation that evaluates a product’s performance with it expectation and desire. Customer satisfaction is therefore an attitude or a rating made by the customer by comparing their pre-purchase -6- expectation to their subjective perceptions of actual performance (Oliver, 1980). ‘‘Satisfaction is a person’s feeling of pleasure or disappointment resulting from comparing a product’s performance (outcome) in relation to his or her expectation’’ (Kotler & Keller, 2006 p. 144). Bank customer satisfaction is regarded as banks fully meeting the customers’ expectation (Bloemer, Ruyter, and Peeters, 1998) and also said to be a feeling or attitude formed by bank customers after service, which expressly connects the various purchasing behaviour (Jamal and Naser, 2002). Customer satisfaction is seen to be a state of mind that customers have about a company when their expectations have been met or exceeded over the lifetime of the product or service (Kevin Cacioppo, 1995 and Kumbhar, 2010). Satisfaction appears to be between pre-exposure and post-exposure of attitudinal components (Oliver, 1980) and serves as a link between the various stages of consumer buying behavior (Jamal and Nasser, 2002). Lenka, Suar et al. (2009, p. 50) identified ‘customers’ satisfaction as a combination of their cognitive and affective response to service encounters’. 1.2. Service Quality Parasuraman, Zeithaml, and Berry (1985) posit that service quality is ‘performance based’ rather than object oriented, therefore “precise manufacturing specifications concerning uniform quality can rarely be set”. Tapiero (1996) also indicates that the definition of the term quality differ from author to author and it is usually based on the person making the definition, the measures applied and the context within which it is considered. -7- Service quality is an important contemporary issue in service management and marketing (Clottey and Collier, 2008). Banking is seen as a service that captures all the characteristics of service (Chakrabarty, 2006). Literatures sampled from the 1980’s and 1990’s have examined service quality from two points of view. Researchers like Carman (1990), Garvin (1983), Parasuraman et al. (1985, 1988) have defined and measured service quality by looking at its attributes. This is contrary to Bitner and Hubbert (1994), Iacobucci, Grayson, and Ostrom (1994), Oliver (1993), and Parasuraman, Zeithaml, and Berry (1994) who examine the application of services to conceptualize the relationship between service quality and customer satisfaction. Donnelly et al (1995) also defines service quality as the degree of excellence or superiority that an organization's product possesses and argues that it is influenced by three service quality dimensions. These three dimensions are customer service, service knowledge and service infrastructure and technology. Just like customer satisfaction, service quality is equally difficult to measure accurately and an abstract construct (Carman 1990). In support of the above statements, while Shostack (1977) looks at the intangibility of service that is rendered or experienced, Parasuraman et al. (1985) argues that service quality goes beyond outcomes and involves the delivery process. Based upon available literatures sampled, service quality shares some similarities with customer satisfaction, although the two are not the same (Cronin and Taylor, 1992; Parasuraman et al., 1985). This according to Clemes et al has led to the -8- combination of service quality and customer satisfaction literature as the basis service quality theory (Clemes et al., 2007). 1.3.Internet Banking Internet banking involves the use of banking services via the World Wide Web (Bernstel, 2000). Internet banking permits consumers to carry out usual banking transactions on a computer which is equipped with Internet connection (Fox, 2006). Internet banking is the situation where ―customers can access their bank account via the internet using a PC or mobile phone and web-browser (Zeithaml et al., 2002). Basel Committee Report on Banking Supervision (1998) defines Internet banking services as the provision of various banking products and services like bank account management, electronic bill payment and financial advice over the Internet. Mukherjee and Nath (2003) describes Internet banking as a type of banking activity through which consumers can perform banking transactions such as checking account balances and making payments via telecommunication network. Internet banking is a process of innovation whereby customers handle their own banking transactions without visiting bank tellers (Qureshi et al., 2008). According to Burr (1996), internet banking is an electronic connection between bank and customer in order to prepare, manage and control financial transactions. Internet banking allows consumers to access their bank and accounts to undertake banking transactions. Thulani et al (2009) refer internet banking as systems that enable bank customers to get access to their accounts -9- and general information on bank products and services through the use of bank’s website, without the intervention or inconvenience of sending letters, faxes, original signatures and telephone confirmations. It is the types of services through which bank customers can request information and carry out most traditional retail banking services such as opening an account or transferring funds to different accounts, and new banking services, such as electronic online payments via a telecommunication network without leaving their homes or organizations (Aladwani, 2001; Daniel, 1999; Mols, 1998; Sathye, 1999). It provides universal connection from any location worldwide and is universally accessible from any internet linked computer (Thulani et al, 2009; Perumal and Shanmugan, 2004; Bradley and Stewart, 2003 and Rotchanakitumnuai and Speece, 2003). According to Michael Karlin, the President and Chief Operation Officer of the world’s first virtual bank, Security First Network Bank, the idea of internet banking is as follows: - You do not have to purchase any software, store any data on your computer, back up any information, since all transactions occur on the bank server over the infrastructure of the Internet. - You will be able to conduct your banking services anywhere you like but you need to have a computer and a modem, no matter where you are (e.g. at home, at office, or in a place outside the country). - 10 - - You can use the banking services 24 hours a day, 7 days a week, and 365 days a year. You no longer have to reconcile a bank statement or manually track your ATM and paper checks. At an advanced level internet banking is called transactional online banking, because it involves the provision of facilities such as accessing accounts, transfer of funds, and buying financial products or services online (Sathye, 1999). The terms internet banking and online banking are often used in the literature to refer the same things. Internet banking is considered as an online revolution of the traditional banking services which offers customers the greatest expediency for performing banking transactions via the Internet. Internet banking is developed to help banks deliver services and products better, faster, and cheaper. It enables customers to browse essential bank products and services seven days a week through their personal computers (Polatoglu & Ekin, 2001). It allows consumers to perform banking transactions over the Internet anywhere and anytime (Polatoglu & Ekin, 2001). According to Nehmzow (1997) internet banking offers the traditional layers in the financial services sector the opportunity to add a low cost distribution channel to their numerous different services. He continues that internet banking also creates a threat to traditional banks’ market share, because it neutralizes so many of their competitive advantages in having a traditional branch bank network. - 11 - By offering internet banking services, traditional financial institutions seek to lower operational costs, improve consumer banking services, retain consumers and expand share of customer. Internet is the cheapest delivery channel for banking products as it allows the entity to reduce their branch networks and downsize the number of service staff. Thus, contemporary banks now regard the internet channel as equally important to traditional channels of branches, automated teller machines (ATM), telephone banking and call centers (Gartner, 2003). In the new banking environment, internet banking is increasingly managed as an operational azctivity and an important element of a multi-channel strategy (Black et al., 2002). ISACA (Information Systems Audit and Control Association) recorded that more and more banks are transforming their businesses by using Internet technology to develop or expand relationships with their customers.. Currently in Vietnam, internet banking is available and offered by the majority of Vietnam’s leading international and domestic banks. A survey conducted by ComScore announced on 9/3/2011 shows that the number of users of e-banking in Vietnam has increased 35%, from 701 000 to 949 000. This is still a modest figure compared with the growth rate of the mobile and Internet market and is much smaller than the population rate. 1.4. Relationship between Service Quality and Customer Satisfaction The importance of service quality and customer satisfaction is shown by the depth of theoretical and empirical studies on the two concepts in recent - 12 - times. In the word of Spreng and Mackoy (1996) service quality and customer satisfaction are the two essential concepts that are at the crux of the marketing theory and practice. According to Parasuraman et al (1985), there is an established strong relationship between quality of service and customer satisfaction since a perceived higher level of service quality results in increased customer satisfaction and a lower level of service quality results in a dissatisfied customer (Jain and Gupta, 2004 and Kumbhar 2011). As also indicated by Parasuraman, Zeithaml and Berry (1988) in their empirical work , they argue that “if the expected quality of service and actual perceived performance is equal or near equal the customers can be satisfy, while a negative discrepancy between perceptions and expectations or ‘performance-gap’ lead to customer dissatisfaction, and positive discrepancy leads to consumer delight”. The relationship between expectation, perceived service quality and customers satisfaction have been investigated in a number of researches (Zeithaml, et al, 1996). As posited by Delvin (1995), the quality of services derived from a banking activity influences it usage hence since customers have less time to visiting a bank and therefore want a higher degree of convenience and accessibility. This attributes has led to customers being satisfied thus their adoption of Internet banking. Additionally, Delvin (1995) argues that perceived usefulness, ease of use, reliability, responsiveness, security, and continuous improvement (Liao and Cheung, 2008) has led to the adoption of - 13 - internet banking. Liao and Cheung (2002) found in their study that individual expectations with reference to accuracy, security, network speed, userfriendliness, and user involvement and convenience were the most important quality attributes in the perceived usefulness of Internet-based e-retail banking. 2. Empirical Studies Many past studies have developed various models for understanding relevant e-service quality dimensions relevant to internet banking. Followings are few studies have examined customer satisfaction in relation to internet banking. Table 1. List of empirical studies No. 1 TITLE “SERVQUAL: multiple-item for a AUTHOR 1988 Parasuraman, The Zeithaml and containing 26 items, measures scale measuring Berry consumer perceptions FINDINGS YEAR five SERVQUAL dimensions quality of of including: tangibles, service quality” scale service termed reliability, responsiveness, assurance, and empathy. 2 “Service quality in the banking sector: 1999 Joseph et al. Six dimensions banking service of online quality - 14 - the impact technology of including: convenience/accuracy, on feedback/complaint service delivery” management, efficiency, queue management, accessibility and customization. 3 “A conceptual framework understanding service for quality include: access, ease of e- navigation, efficiency, flexibility, for reliability, personalization, security, responsiveness, future research and assurance, site aesthetics and managerial practice” price knowledge. “The Key Determinants Internet 5 Zeithaml et al. Attributes of internet service quality: implications 4 2001 2001 Jun and Cai Significant dimensions that of determine service quality: web Banking site design, information, ease of Service Quality: A use, Content Analysis” responsiveness, and reliability. “Developing a Scale to Measure the 2001 access, Yoo and SITEQUAL Donthu dimensions: courtesy, with ease Perceived Quality of aesthetics design, an Internet Shopping speed and security. four of use, processing Site (SITEQUAL) - 15 - 6 “Measuring customer perceived 2004 online M.Jun and service quality: Scale development Z. Yang, R.T. Peterson and Six key online service quality dimensions: reliability, responsiveness, competence, ease of use, security, and product managerial portfolio. implications” 7 “Perceived e-service quality 2007 (PeSQ): Measurement E. Cristobal, Perceived C. Flavia and multidimensional construct: web M. Guinali validation and effects on customer is a service, assurance and order management consumer Perceived quality influences on satisfaction and web satisfaction; and that satisfaction site loyalty” 8 design, quality influences on consumer loyalty. “Measuring the 2010 Ho and Lin There are five dimensions and 17 Service Quality of items in the measurement scale Internet for measuring the service quality Scale Banking: Development and Validation” of internet banking. The five dimensions are: customer service, web design, assurance, preferential treatment, and information provision. - 16 - 3. Suggested Conceptual Model Based on a thorough review of literature, the conceptual model presented in Figure 4. It descibes the dimensions of Internet Banking Service Quality (IBSQ) for which Customer Satisfaction (CS) was measured. The conceptual framework for this study adopts the IBSQ dimensions proposed in the model of IBSQ in “Measuring the Service Quality of Internet Banking: Scale Development and Validation” (Ho and Lin, 2010). This model is also suggested in an International Journal of Scientific & Technology Research “Customer Satisfaction With Internet Banking Service Quality In The Ghanaian Banking Industry” (Nimako, Gyamfi and Wandaogou, 2013). The five dimensions identified in the model are: web design, customer service, assurance, preferential treatment and information provision. This model is adopted for two reasons. First, the model is based on extensive literature review. Second, the dimensions in the model are validated empirically as applicable to internet banking context and not just general e-service quality context. Web design: This dimension covers the design of the web site and includes items like web content layout, content updating, navigability, and user-friendliness. These are consistent with findings of previous studies (Aladwania and Palvia, 2002; Yang and Fang, 2004; Z. Yang, M. Jun and R.T. Peterson, 2004). Customer Service: Customer service has been recognized as an important element for enhancing service quality in online shopping and banking (Zeithaml, Parasuraman and Malhotra, 2001). Elements in customer service dimension have - 17 - been noted in many previous studies (Madu, 2002; Wolfinbarger and Gilly, 2003). This dimension has to do with service reliability, customer sensitivity, personalized service, and fast response to complaints that have been described as responsiveness to customer needs and complaints ( Parasuraman, Zeithaml and Berry, 1988). Assurance: This is made up of the guarantee that the record showing banking activities and security of account information is not shared (Yang and Fang 2004; Saha and Zhao, 2005). Strong issues on security are a common concern to individuals hence their unwillingness to use internet banking (Madu, 2002). Many previous study have demonstrated that assurance is one of the critical elements of online banking service quality (Yoo and Donthu, 2001), (Wolfinbarger and Gilly, 2003). The assurance dimension describes impressions by the service providers that convey a sense of security and credibility (Parasuraman, Zeithaml and Berry, 1988). Security and privacy are related items that affect the confidence to adopt online banking services (Wolfinbarger and Gilly, 2002). Preferential Treatment: This is related to the added value of using internet banking services. Where customers perceive that the incentive of online banking is attractive then they would be more willing to use internet banking Information Provision: Information provision has become one of the key elements of online service quality as customer would need the right information that enables them complete online banking transactions successfully (H. Li and R. Suomi, 2009). - 18 - Proposed model We hypothesize that all those attributes have a positive impact on customer satisfaction in internet banking. Figure 1. Conceptual Model Web design Customer service Assurance H1(+) H2(+) H3(+) H4(+) Preferential treatment Customer Satisfaction in Internet Banking H5(+) Information provision Online Service - 19 - Hypotheses This study came up with the following hypothesis based on the literature review: H0(null): The five dimensions of Online Service do not impact on customer satisfaction in internet banking. Hypothesis 1 (H1): Web Design of Online Service has positive impact on customer satisfaction in internet banking. Hypothesis 2 (H2): Customer Service of Online Service has positive impact on customer satisfaction in internet banking. Hypothesis 3 (H3): Assurance of Online Service has positive impact on customer satisfaction in internet banking. Hypothesis 4 (H4): Preferential Treatment of Online Service has positive impact on customer satisfaction in internet banking. Hypothesis 5 (H5): Information Provision of Online Service has positive impact on customer satisfaction in internet banking. - 20 - CHAPTER THREE - METHODOLOGY 1. Sampling techniques and Sample size Convenience sampling method is used for data collection. Convenience sampling is a non-probability sampling technique where subjects are selected because of their convenient accessibility and proximity to the researcher (Black, 1999). Convenience sampling is easy to carry out and requires relative little cost and time to carry out. The sample size used for this study is two hundred and eleven Vietcombank customers who have used banking service provided by Vietcombank for the last twelve months. 2. Research Instrument The main research instrument used for this study is the questionnaire. Based on the literature review and the previous concerning researches we build up our own questionnaires that are most suitable to our case, to our geographic and demographic situation. The questionnaire used for the study is divided broadly into two sections. One is on the demographics and the other one is on characteristics of service quality. In the demographic section variables such as age of the respondent, gender, income level, marital status and educational level are asked. The section on service quality is divided into five sub sections. These subsections are Web design, Customer service, Assurance, Preferential treatment and Information provision. The five subsections use a five point Likert Scale where respondents - 21 - are asked to indicate the extent to which they agree/disagree with various statements. The Five-Point Likert’s scale having the ratings of “strongly disagree” (1) and “strongly agree” (5) are used. 3. Data Collection Procedures 3.1. Primary Data A self-administered, structured questionnaire is used to gather data from respondents to the study. Each respondent to the study is supposed to fill a questionnaire after a brief introduction and objectives of the study have been explained. The research questionnaires are distributed to customers coming to Vietcombank Binh Tay Branch during business hours. A total of 220 questionnaires are sent to individual customers. However only a total of 211 responses are collected and used for input data. Those unusable responses are left aside and rejected, of which that are not completely finished, or suspiciously unintended crossed, or crossed with same scale for more than five items with the same frequency. According to Hair’s theory (Hair et al, 2010), the required sufficient sample size is a result of number of variable multiplied by 5. There are 23 variables in our questionnaires. Thus, the number of 211 accessible samples would be accepted since it satisfies the requirement for chosen sample size. Moreover, the higher the number is, the more reliable the data become. Therefore, this total number is quite good. - 22 - The chosen respondents should have been using Internet banking for at least twelve months. That is long enough for a person experiencing the internetbanking services. 3.2. Secondary Data Secondary data are obtained through various kinds of documents such as research reports, annual reports, books and articles related to development of internet banking service quality and customer behavior toward this service of Vietcombank. 4. Data analysis The data gathered via the questionnaires are recorded and coded into Statistical Package for Social Science (SPSS) software. The data are analysed using two statistical techniques. These techniques are multiple regression analysis, and analysis of variance (ANOVA). The use of multiple regression analysis is to help test the conceptual framework or model, whiles the analysis of variance is help compare the results with the customers’ demographic characteristics. The collected data are processed with statistical software SPSS version 16.0. The consistency coefficients measured by Cronbach’s Alpha for scaling test and Exploratory Factor Analysis (EFA) are used. The scale is assessed by the reliability value through Cronbach's alpha coefficient. Cronbach’s alpha is a coefficient that indicates how well the items in - 23 - a set are positively correlated to one another. This Cronbach's alpha coefficient is expected to be higher than 0.7 and total variable correlation is over 0.5. The closer the Cronbach’s alpha is to 1, the higher the internal consistency reliability of the research instrument. After that EFA (Exploratory Factor Analysis) is used for factor analysis to examine the appropriateness of the factor analysis. The next step is using regression analysis and building Linear Regression Equation to explain the relationship between Customer Satisfaction and Service Quality factors. Through data analyzing process, we can find out whether five hypotheses mentioned aboved would be accepted or rejected. From that result, we would explore which of among five dimensions had significant relationship with customer’s satisfaction of internet banking usage. Following is Coding table of 22 main measurement variables matching with 22 survey questions in questionnaire: Table 2. Independent variables (indicators) CODE WD1 WD2 WD3 WD4 CS1 CS2 CS3 CS4 ITEMS WEB DESIGN Interface of website is impressive Display is well organized and easy identified Easy logging on online portal Easy understanding which button to be clicked for the next step CUSTOMER SERVICE Offer sufficiency,wide range of services & utilities Sufficient and real time financial information provided Validity of the hyperlinks on the bank's portal Quickness of the Web page on bank's portal site loading SEQUENCE NUMBER 1 2 3 4 5 6 7 8 - 24 - CS5 CS6 CS7 CS8 AS1 AS2 AS3 PT1 PT2 PT3 PT4 IP1 IP2 IP3 Easy completion of online transactions Not occurring errors when perform services Prompt reception of responses to customer request Ability to guide customer to resolve problems ASSURANCE High reliability and credibility of transactions Protection/security of customer transaction data Feeling of relief of customer to transact on internet banking PREFERENTIAL TREATMENT Reasonable fees in transfer transactions Reasonable fees in other payment and request Offering preferentially lower fees/ rates and charges in billing payment Offering preferential policies for online transactions INFORMATION PROVISION Complete and sufficiency of the transaction information Accuracy of the online transaction process of the bank Easy updating new preferential policies & promotions 9 10 11 12 13 14 15 16 17 18 19 20 21 22 - 25 - CHAPTER FOUR - DATA ANALYSIS AND RESULT 1. About Vietcombank Binh Tay Branch Vietcombank Binh Tay Branch (VCB Binh Tay) was established by decision 207/QD-TCCB of the Board of Foreign Trade Bank of Vietnam’s Chairman, began operation on 10 Jan. 1998 on the inheriting and upgrading from Binh Tay transaction office of VCB Ho Chi Minh. The main office located in Hậu Giang street, District 6, HCMC. This is a densely populated region in the southwest, with the majority of Chinese-Vietnamese people who own small and medium businesses. In the early days, human resource of VCB Binh Tay was limited in only 47 people operating in eight departments. However, up to now, the number has increased to 160 employees in eleven departments at its main office and five transaction offices included. The five transaction offices are allocated surrounding Ho Chi Minh City center and in some districts that have potential economic development in the area of Ho Chi Minh City. The organizational structure of VCB Binh Tay is shown in Figure 2 below: - 26 - Figure 2. Organization Structure of VCB Binh Tay DIRECTOR HR & Admin Depart. DEPUTY DIRECTOR 1 DEPUTY DIRECTOR 2 Research & Synthesize Depart. Accounting Department Credit Service Department IT Department Internal Supervised Department Treasury Department Transaction Office 1 Card Payment Department Transaction Office 2 Debt Management Department Transaction Office 3 Trade Service Department Transaction Office 4 Personal Services Department Transaction Office 5 Source: Vietcombank Binh Tay profile - 27 - From a small scale bank, through many years of efforts in development, VCB Binh Tay now has achieved some certain positions in customer’s mind and the number of loyal customers also increases day by day. Despite of competition from other commercial banks in the area, especially the joint-stock commercial banks, operation performance of VCB Binh Tay is still bright and in sustainable development. Increasing total revenue yearly would be the most pratical evidences for that statement. Table 3. Total revenue of VCB Binh Tay from 2009-1st half 2012 YEAR 2009 2010 2011 (Unit: VND) 1st half 2012 TOTAL REVENUE 174,181,608,842 270,955,532,086 371,689,268,370 176,223,000,235 Source: VCB Binh Tay Income statement from 2009 to 1st half 2012 From 2009 to 2010, total revenue increased 55.6% and in the next year 2011, the number exceeded 37.2%. Due to some problems related to overdue debts, the growth rate of 2011 declined a little bit in comparison with the year 2010. Within the first half of 2012, total revenue had reached more than 52.6% total revenue of the previous year. The development seems relatively stable. - 28 - Figure 3. Total revenue of VCB Binh Tay from 2009 to1st half 2012 400,000,000,000 350,000,000,000 300,000,000,000 250,000,000,000 200,000,000,000 150,000,000,000 100,000,000,000 50,000,000,000 0 2009 2010 2011 1st half 2012 Source: VCB Binh Tay Income statement from 2009 to 1st half 2012 Regarding the Internet Banking of VCB Binh Tay, this is a utility service introduced to customers since 2001. With many integrated utilities, this service brings to users extreme convenience and high effectiveness in making transaction without coming to any transaction office of Vietcombank . Due to its advantages, Internet banking is increasingly popular and the number of users therefore also increases day by day. As annual reports, the number of Internet banking users at VCB Binh Tay in 3 recent years are shown below: Table 4. Total number of new I-Banking users of VCB Binh Tay from 2011-2013 YEAR 2011 2012 2013 3.424 3.880 5.399 No. of new I-Banking users Source: VCB Binh Tay annual report - 29 - Figure 4. Total number of new I-Banking users of VCB Binh Tay 2011-2013 6000 5000 4000 3000 2000 1000 0 2011 2012 2013 Source: VCB Binh Tay annual report Data from the table show that from 2011 to 2012, new registrations on Internet banking service increased 13.3% and got significant increase at 39.1% in 2013. That is a speaking number. In today’s busy life, what can help people save time but still do things effectively, it will be easily accepted. Undoubtedly, trends of using Internet banking service will continue to increase and soon become basic service in banking section in the future. - 30 - 2. Sample demographics Table 5. Respondent Characteristics Descriptions Frequency Percent % Male 136 64.5 Female 75 35.5 Under 25 yrs old 45 21.3 25- 35 yrs old 71 33.6 36- 45 yrs old 57 27.0 46- 55 yrs old 29 13.7 Over 56 yrs old 9 4.3 High school 11 5.2 Intermediate 13 6.2 College 47 22.3 University graduated 127 60.2 Post graduated 11 5.2 Others 2 0.9 Below 5 millions 23 10.9 5- 10 millions 88 41.7 10- 20 millions 61 28.9 Over 20 millions 39 18.5 Gender Age Education Income/ month (VND) - 31 - Single 75 35.5 Married 125 59.2 Others 11 5.2 Less than 1 year 48 22.7 Experience using Internet 1-2 years 58 27.5 banking 2-3 years 67 31.8 More than 3 years 38 18.0 Marital status Source: Author’s own calculation The study involved respondents with varied background characteristics. In terms of gender, 136 representing 64.5% of the respondents were males and only 75 representing 35.5% were females. The age statistics indicated that the least age groups were those above 56 years old which was represented 4.3% of the respondents sampled for the study. Additionally, the highest age groups from the study were those between 25-35 years old. These age groups were made up of 71 respondents which represented 33.6% of the respondents. The highest age group was followed by those between 36- 45 years old, group below 25 years old and those between 46-55 years old. This age group represents 27.0%, 21.3% and 13.7% of the respondents respectively. This implies that majority of them were in the economically active population (25 – 45 years). Furthermore, the marital status of respondents shows that 75 were single, 125 were married and 11 in other status (separated/widow). Percentage of 35.5% were single, 59.2% were married, 5.2% were in other marital status. - 32 - In terms of education, all respondents were educated with majority of them. The most represented educational levels were those with a Bachelor degree which was made up of 127 respondents or 60.2% of the respondents. This was followed by 47 respondents representing 22.3% who finished education in college, 13 respondents representing 6.2% who were at intermediate education and 11 respondents representing 5.2% who were with a Masters degree. The least represented educational level were those with basic education who were 2 in number or 0.9% of the respondents. In terms of monthly income, few of them, 23 of the respondents or 10.9% earned below 5 millions VND, 88 respondents or 41.7% earned between 5- 10 millions VND, while 61 respondents or 28.9% earned between 10- 20 millions VND and 39 respondents or 18.5% of them earned over 20 millions VND a month. Figure 5. Age ranges AGE 14% 4% 21% Under 25 25-35 27% 36-45 34% 46-55 Over 56 Source: Author’s own calculation - 33 - Figure 6. Income ranges 45 40 35 30 25 20 15 10 5 0 41.7 28.9 18.5 10.9 below 5 millions VND 5- 10 millions VND 10- 20 millions VND over 20 millions VND Source: Author’s own calculation In terms of length of usage of the internet banking facility, 31.8% (67 respondents) indicated that they have been using the facility for the between 2-3 years, this was followed by 27.5% (58 respondents) who indicated that they have been using the facility for the past 1-2 years. In addition to the above, 22.7% (48 respondents) indicated that they have been using internet banking for less than a year and 18% (38 respondents) indicated that they been using the facility for more than 3 years. Most of respondents have been using internet banking less than three years and were in the age raging from 25 to 45. It means that internet banking users are mostly in working age and have income from 5 to 20 millions VND per month. This is the group of customers that VCB Bình Tây should pay much attention in order to sell services as well as improve service quality based on their feedbacks. - 34 - They are direct users of services, they have experience and they know exactly what a customer requires for a service so their ideas are really worthy. 3. Assessing scale and research model Scale was assessed by Cronbach's Alpha reliability coefficient and Exploratory Factor Analysis (EFA) from the collection of the sampled data. The assessment aims to reduce the variables to make more significant and refect variables do not match but keep the content of initial variables. 3.1. Assessing scale reliability by Cronbach’s Alpha The researcher used a reliability analysis in order to identify the variable which is reliable to make correlation analysis. Subsequently, the Cronbach’s alpha is employed to determine the reliability of the measurement in this study. Cronbach's alpha is a measure determining the internal consistency or average correlation of items in a survey instrument to gauge its reliability. It tests mutual correlation and therefore giving information on reliability of the scale. Besides, using the function 'Cronbach’s alpha if item deleted' help to examine whether deleting an item gives a better scale. In Cronbach’s alpha test, items with low reliability alpha, which is less than 0.5, will be dropped. According to Sekaran (2003), reliabilities less than 0.6 are generally considered to be poor, those in the range 0.7 are to be accepted and those over 0.8 to be good. - 35 - Table 6. Cronbach’s Alpha of independent variables scales Variables Corrected item Total Cronbach’s Alpha if item Cronbach’s Correlation Deleted Alpha 1. Web Design WD1 .766 .851 WD2 .729 .865 WD3 .769 .850 WD4 .751 .857 .888 2. Customer Services CS1 .654 .713 CS2 .559 .723 CS3 .594 .716 CS4 .108 .822 CS5 .598 .716 CS6 .205 .793 CS7 .662 .705 CS8 .702 .697 AS1 .630 .832 AS2 .713 .748 .763 3. Assurance .833 - 36 - AS3 .739 .724 4. Preferential Treatment PT1 .622 .854 PT2 .752 .796 PT3 .758 .799 PT4 .688 .823 .857 5. Information Provision IP1 .574 .727 .771 IP2 .635 .658 IP3 .609 .689 Source: Author’s own calculation A Cronbach Alpha score greater than 0.7 show high internal reliability of the scaled item (Nunnally and Bernstein, 1994). Results from the Table 6 show Cronbach’s Alpha of all 5 variables are higher than 0.7, meaning that they are highly reliable. However, by investigating the Corrected item Total Correlation, we can see that the correlations of the two items CS4 (.108) and CS6 (.205) are smaller than 0.5 while all other items correlate at 0.55 or better. Finally, by exploring Alpha if item deleted, we can see that the reliability of the scale would increase if either of these two items were to be deleted. When the alpha value is higher than the current alpha with the item included, deleting this item will improve the overall reliability of the exam. Thus, we would probably delete these two items CS4 and CS6 from this exam. - 37 - Testing Cronbachs’s Alpha the second time without item CS4 we have result as following. The Cronbach’s alpha of Customer Services variable increases from .763 to .822 Table 7. Cronbach’s Alpha after rejecting CS4 item Reliability Statistics Cronbach's Alpha N of Items .822 7 Item-Total Statistics Scale Mean if Scale Corrected Cronbach's Variance if Item-Total Alpha if Item Correlation Deleted Item Deleted Item Deleted CS1 19.26 14.536 .683 .783 CS2 19.18 14.558 .583 .795 CS3 19.16 14.123 .628 .788 CS5 19.20 14.094 .646 .785 CS6 18.76 15.763 .195 .879 CS7 19.17 13.739 .713 .774 CS8 19.15 13.634 .708 .774 - 38 - Continue to test the reliability of Customer Service scale by rejecting item CS6, result given is much better with Cronbach’s alpha now is .879, suggesting that the items have relatively high internal consistency. Table 8. Cronbach’s Alpha after rejecting CS6 item Reliability Statistics Cronbach's Alpha N of Items .879 6 Item-Total Statistics Scale Mean if Scale Corrected Cronbach's Variance if Item-Total Alpha if Item Correlation Deleted Item Deleted Item Deleted CS1 15.71 11.730 .682 .859 CS2 15.63 11.748 .580 .875 CS3 15.61 11.287 .639 .866 CS5 15.65 11.134 .684 .858 CS7 15.62 10.714 .775 .842 CS8 15.60 10.660 .760 .844 - 39 - Cronbach’s alpha score increases means the correlations between the items increase when we dropped 2 items CS4 and CS6 out of the test. It means these two items have low internal consistency in the scale. Deleting them even improve the overall reliability of the scale. It can be explained that “Quickness of the web page on bank’s portal site loading”(CS4) and “Web page not occur errors when perform services”(CS6) depend on the Internet packages customers registered and/or the time they accessed network so it can be removed from set of items. After deleting the two items CS4 and CS6, the results show us that all the variables have corrected item total correlation are more than 0.5 and Cronbach’s alpha scores are all higher than 0.7. It means the reliability of the scales is accepted. The scale reliability of Web design variable is highest with Cronbach’s alpha is .888 while the number is lowest at .771 in the scale of Information provision variable. 3.2.Descriptive Statistics The customer satisfaction of Internet banking service quality is measured through 22 questions based on 5 factors which are Web Design, Customer Services, Assurances, Preferential Treatment and Information Provision. - 40 - Table 9. Descriptive Statistics Std. N Mean Deviation DESIGN 211 3.80 .985 CUSTOMER_SERVICES 211 3.17 .696 ASSURANCE 211 3.35 .723 PROMOTE 211 3.56 1.051 INFORMATION_PROVIDE 211 3.78 .743 WD1- Interface of website is impressive 211 3.52 1.144 211 3.82 1.125 211 3.64 1.143 211 3.55 1.135 211 3.05 .745 211 3.13 .835 211 3.16 .867 WD2- Display is well organized and easy identified WD3- Easy logging on online portal WD4- Easy understanding which button to be clicked for the next step CS1- Offer sufficiency,wide range of services & utilities CS2- Sufficient and real time financial information provided. CS3- Validity of the hyperlinks on the bank's portal - 41 - CS4- Quickness of the Web page on bank's portal 211 3.42 1.290 CS5- Easy completion of online transactions 211 3.11 .854 CS6- Not occurring errors when perform services 211 3.55 1.176 211 3.15 .852 211 3.16 .874 211 3.64 .840 211 3.20 .811 211 3.29 .786 211 3.18 1.307 211 3.64 1.196 211 3.65 1.091 211 3.29 1.252 211 4.03 .858 site loading. CS7- Prompt reception of responses to customer request CS8- Ability to guide customer to resolve problems AS1- Reliability and credibility of transactions AS2- Protection/security of customer transaction data AS3- Feeling of relief of customer to transact on internet banking PT1- Reasonable fees in transfer transactions PT2- Reasonable fees in other payment and request PT3- Offering preferentially lower fees/ rates and charges in billing payment PT4- Offering preferential policies for online transactions IP1- Complete and sufficiency of the transaction information - 42 - IP2- Accuracy of the online transaction process of 211 3.68 .889 211 3.62 .855 the bank IP3- Easy updating new preferential policies & promotions Valid N (listwise) 211 Source: Author’s own calculation According to the table 9, most of factors have been judged from “Totally Disagree” to “Totally Agree”. In detail, the result of mean scores fairly high with minimum is 3.05 and maximum is 4.03, which means customers judge service quality of Internet banking at VCB Binh Tay pretty good. Especially, three factors got highest score include “Accuracy of the online transaction process of the bank “- 3.68; “- Display is well organized and easy identified”- 3.82; “Complete and sufficiency of the transaction information the internet banking portal provides”- 4.03 prove for high awareness of customers about factors that they highly appreciated when making online transactions via VCB website. However, the factor that has lowest Mean score is “Offer sufficiency,wide range of services & utilities “- 3.05. VCB should take into account this aspect in order to improve and obtain higher customers’satisfaction. - 43 - 3.3.Exploratory Factor Analysis (EFA) Furthermore, we further conducted the Bartlett’s Test of Sphericity and Kaiser-Meyer-Olkin Measure (KMO) to examine the appropriateness of the factor analysis. Bartlett test of Sphericity was used to examine the correlation of the different variable of the assumption and also whether conducting factor analysis was appropriate. The KMO values in the range between 0.5 and 1 are acceptable (0.550%). It means five factors as categorized could explained more than 70 percentages of variability of the variables. In other words, 70.539% of factors changes are explained by valid observed variables (Hoang Trong & Chu Nguyen Mong Ngoc 2005). - 47 - 3.4.Correlations between variables The correlations had been tested to know whether and how strongly pairs of variables are related. Pearson’s correlation coefficient (r) is a measure of the strength of the association between the two variables. In other words, it was used to predict the cause-and-effect relations (two way interaction) between the two variables. If a Pearson’s score: Is close to 0, this means that there is a weak relationship between your two variables. Is close to 1, this means that there is a strong relationship between your two variables. If sig. is less than 0.05 then the two variables have relationships to each other. Table 13. Correlations WD WD CS AS PT IP SAT .192** .414** .235** .316** .464** .005 .000 .001 .000 .000 211 211 211 211 211 211 .192** 1 .325** .304** -.024 .462** .000 .000 .733 .000 211 211 211 211 Pearson 1 Correlation Sig. (2-tailed) N CS Pearson Correlation Sig. (2-tailed) .005 N 211 211 - 48 - AS Pearson .414** .325** .386** .239** .587** Sig. (2-tailed) .000 .000 .000 .000 .000 N 211 211 211 211 211 211 .235** .304** .386** 1 -.071 .448** Sig. (2-tailed) .001 .000 .000 .303 .000 N 211 211 211 211 211 211 .316** -.024 .239** -.071 1 .295** Sig. (2-tailed) .000 .733 .000 .303 N 211 211 211 211 211 211 .464** .462** .587** .448** .295** 1 Sig. (2-tailed) .000 .000 .000 .000 .000 N 211 211 211 211 211 1 Correlation PT Pearson Correlation IP Pearson Correlation SAT .000 Pearson Correlation 211 **. Correlation is significant at the 0.01 level (2-tailed). The results in table show that Pearson’s values are almost positive which stands for positive correlation between two variables. Dependent variable SAT (Customer Satisfaction) had positive correlation with all other independent - 49 - variables. That is what we supposed in 5 hypotheses mentioned in the second part of this study. All other variables have relationships but not strong relationships, they related in average level. There were negative values between two couples of variables IP & CS and IP & PT showing that Information Provision (IP) factor not have relationship with the two factors Customer Service (CS) and Preferential Treatment (PT). Moreover, IP reached p > 0.05 in relationships with CS(p=0.7) and PT(p=0.3). The test gave a predictive conclusion that the variable IP did not correlate to CS and PT variables. However, we kept it because it still had correlation with dependent variable SAT. . 3.5. Hypotheses testing In the next step, we conducted linear regression analysis to check the relationships between the independent variables (WD, CS, AS, PT and IP) and the dependent variable SAT. This was also to check whether these relationships have statistical meaning. In other words we were testing the hypotheses. - 50 - Table 14. Coefficientsa Model Unstandardized Standardized Collinearity Coefficients Coefficients Statistics B Std. Error 1 (Constant) Beta t Sig. Tolerance VIF -.727 .294 .014 2.474 WD .144 .044 .177 3.236 .001 .759 1.318 CS .324 .062 .269 5.201 .000 .848 1.180 AS .334 .065 .294 5.098 .000 .680 1.470 PT .176 .042 .224 4.169 .000 .781 1.280 IP .213 .058 .192 3.690 .000 .839 1.192 Findings in Table 14 show us that all five factors have Sig.< 0.05. Therefore, the five hypotheses are accepted. In other words, the findings validated hypotheses that: H1: Web Design has positive impacts on customer satisfaction on Internet banking service quality H2: Customer Service has positive impacts on customer satisfaction on Internet banking service quality H3: Assurance has positive impacts on customer satisfaction on Internet banking service quality - 51 - H4: Preferential Treatment has positive impacts on customer satisfaction on Internet banking service quality H5: Information Provision has positive impacts on customer satisfaction on Internet banking service quality Web Design (WD) factor has beta= .177 means when Web design increases 1 point, Customer satisfaction increases 0.177 point. Similarly, when each of factors Customer service, Assurance, Preferential Treatment and Information Provision increases 1 point, then Customer satisfaction increases 0.269, 0.294, 0.224 and 0.192 point respectively. Generally, five factors have rather equivalent impact on customer satisfaction in using Internet banking service. Among five factors, Assurance has highest standardized coefficient/beta 0.294 means in 100% impact of all five factors on customer satisfaction, Asuurance accounts for 29.4%. 3.6. Linear Regression Equation Linear Regression Equation explains the relationship between Customer Satisfaction and Service Quality factors. In this study, we finally obtained equation as below: Y= 0.294x1 + 0.269x2 + 0.224x3 + 0.192x4 + 0.177x5 In which: Y denoted dependent variable Customer Satisfaction (SAT) x1 denoted independent variable Assurance (AS) x2 denoted independent variable Customer service (CS) x3 denoted independent variable Preferential treatment (PT) - 52 - x4 denoted independent variable Information provision (IP) x5 denoted independent variable Web design (WD) According to the equation above, it is easy to clarify that Assurance (β=0.294) is the highest influence factor on customer satisfaction on Internet banking service quality at VCB Binh Tay, following by Customer service (β=0.269), Preferential treatment (β=0.224), Information provision (β=0.192). The factor has lowest impact is Web design (β=0.177). R Square indicates how much of the variance in the dependent variable (customer satisfaction) is explained by the 5 independent variables as Web Design, Customer service, Assurance, Preferential Treatment and Information Provision. In this case, the model has R2= 0.536 means that 53.6% variation of customer satisfaction can be explained by the 5 dimensions. Table 15. Model Summary Model 1 R .732a R Square .536 Adjusted R Std. Error of Square the Estimate .525 .550 a. Predictors: (Constant), IP, CS, PT, WD, AS 3.7. Anova Analysis In the ANOVA (Analysis of variance) table, it demonstrates how well the model fits the data collected. The model has Sig. is 0.000 ([...]... positive impact on customer satisfaction in internet banking Hypothesis 3 (H3): Assurance of Online Service has positive impact on customer satisfaction in internet banking Hypothesis 4 (H4): Preferential Treatment of Online Service has positive impact on customer satisfaction in internet banking Hypothesis 5 (H5): Information Provision of Online Service has positive impact on customer satisfaction in internet. .. internet banking on customer satisfaction in Vietnam is yet to be examined as few studies have addressed this issue This study thus aims to fill the gap in the literature by focusing on the impact of internet banking service quality on customer satisfaction with a case study of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) at Binh Tay Branch 2 Rationale for the study The aim of this... bank statement or manually track your ATM and paper checks At an advanced level internet banking is called transactional online banking, because it involves the provision of facilities such as accessing accounts, transfer of funds, and buying financial products or services online (Sathye, 1999) The terms internet banking and online banking are often used in the literature to refer the same things Internet. .. traditional banks’ market share, because it neutralizes so many of their competitive advantages in having a traditional branch bank network - 11 - By offering internet banking services, traditional financial institutions seek to lower operational costs, improve consumer banking services, retain consumers and expand share of customer Internet is the cheapest delivery channel for banking products as it allows... ease of use In reality, customers have different expectations and requirements 4 Objectives The study aims at enriching the knowledge and understanding of factors affecting customer satisfaction of internet banking service in Vietcombank Specifically, the main objectives of the study are: - To identify what main factors of internet banking service impact customer satisfaction - To evaluate the extent of. .. these factors impact customer satisfaction in internet banking service quality? -4- 3 What is the level of customer satisfaction towards the quality of Vietcombank online banking service? 6 Scope of the study The study concentrates on customer attitude and their satisfaction level of using internet banking services provided by Vietcombank Due to time, resource constraints, the author could not carry... their branch networks and downsize the number of service staff Thus, contemporary banks now regard the internet channel as equally important to traditional channels of branches, automated teller machines (ATM), telephone banking and call centers (Gartner, 2003) In the new banking environment, internet banking is increasingly managed as an operational azctivity and an important element of a multi-channel... Guinali validation and effects on customer is a service, assurance and order management consumer Perceived quality influences on satisfaction and web satisfaction; and that satisfaction site loyalty” 8 design, quality influences on consumer loyalty “Measuring the 2010 Ho and Lin There are five dimensions and 17 Service Quality of items in the measurement scale Internet for measuring the service quality... provision of various banking products and services like bank account management, electronic bill payment and financial advice over the Internet Mukherjee and Nath (2003) describes Internet banking as a type of banking activity through which consumers can perform banking transactions such as checking account balances and making payments via telecommunication network Internet banking is a process of innovation... of their impacts on customer satisfaction about internet banking service quality - To identify the level of satisfaction of customers towards Vietcombank internet banking service 5 Research Questions: In order to achieve those 3 objectives, this study aims to answer the following research questions: 1 What are the major factors affecting to customer satisfaction in using internet banking service? 2 ... - 25 - CHAPTER FOUR - DATA ANALYSIS AND RESULT About Vietcombank Binh Tay Branch Vietcombank Binh Tay Branch (VCB Binh Tay) was established by decision 207/QD-TCCB of the Board of Foreign Trade... focusing on the impact of internet banking service quality on customer satisfaction with a case study of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) at Binh Tay Branch. . .IMPACT OF INTERNET BANKING SERVICE ON CUSTOMER SATISFATION IN VIETCOMBANK A CASE STUDY OF VIETCOMBANK BINH TAY BRANCH In Partial Fulfillment of the Requirements of the Degree of MASTER OF