Consumer behavior toward ATM cards at ho chi minh city

MINISTRY OF EDUCATION & TRAINING UNIVERSITY OF ECONOMICS HCM CITY **************** NGUYEN THANH UY VU CONSUMER BEHAVIOR TOWARD ATM CARDS AT HO CHI MINH CITY Major: ID: Banking 60.31.12 Master of Banking Thesis Tutor : TS HỒ VIẾT TIẾN Ho Chi Minh City - 2010 ACKNOWLEDGEMENTS Two year studying with many subjects and hardly timetables, sometimes I feel exhausted to keep up both work and study at the same time However, until now when I am taking the last steps on the studying road, I feel like ever stronger, confident with knowledge I have learned at University of Economics Hochiminh City I would like to take this opportunity to express my sincere thanks to all professors who provide me with a lot of knowledge I would like to express my deep gratitude to Prof Dr Ho Viet Tien, my thesis tutor in supporting me to complete the thesis His enthusiasm and whole-hearted guidance are strong encouraging for me to accomplish the research I would like to extend a grateful acknowledgement to the Board of Directors and the administration staff of University of Economics Hochiminh City for their assistance and supporting me in studying during years Finally, thank you for being essential part of my life: family and friends, they always love, care and continuously encourage me in study and career Love and thank you all! Nguyen Thanh Uy Vu TABLE OF CONTENTS LIST OF FIGURE LIST OF TABLES CHAPRTER : INTRODUCTION …………………………………………… 1.1 Rationale of the research………………………………………………… 1.2 Objective of the research ………………………………………………… 1.3 The meaning of research ………………………………………………… 1.4 The scope and methodology of research ………………………………… 1.4.1 The research scope ………………………………………………………… 1.4.2 The research methodology ………………………………………………… 1.5 Structure of thesis ………………………………………………………… CHAPRTER : LITERATURE REVIEW 2.1 Concept of consumer behavior …………………………………………… 2.2 Models of consumer behavior …………………………………………… 2.3 Characteristics influencing consumer behavior …………………………… 2.3.1 Culture factors ……….……………………… …………………………… 2.3.2 Social factors …………………………………………………………… 2.3.3 Personal factors ………………………………………………………… 2.3.4 Psychological factors …………………………………………………… 10 2.4 The stages of the buying decision process ……………………………….… 14 2.4.1 Problem recognition: perceiving a need…………………………………… 15 2.4.2 Information searching: seeking value ………………………………… … 15 2.4.3 Alternatives evaluation: assessing value ……………………………….… 16 2.4.4 Purchase decision: buying value ……………………………………… … 16 2.4.5 Post purchase behavior: value in consumption or use…………………… 17 2.5 Four types of consumer buying behavior ……………………………….… 18 2.5.1 Complex buying behavior ……………………………………………….… 18 2.5.2 Dissonance- reducing buyer behavior ………………………………….… 19 2.5.3 Habitual buying decision……………………………………………… … 19 2.5.4 Variety- seeking buying decision ……………………………………….… 19 2.6 Adoption process ……………………………………………………….… 20 2.7 Bank marketing approach.……………………………………………….… 22 CHAPTER : RESEARCH METHODOLOGY ………………………….… 25 3.1 Motivational research ………………………………………………… … 25 3.2 The major techniques of motivational research ………………………….… 26 3.2.1 Observation ……………………………….……………………………… 26 3.2.2 Focus group…………………………………………………………… … 26 3.2.3 Depth interviews ……………………………………………………… … 27 3.3 Projective techniques in motivational research ………………………….… 28 3.4 Source of information ………………………………………………….… 28 3.4.1 Secondary information ………………………………………………….… 28 3.4.2 Primary information …………………………………………………… … 29 3.5 The survey process ………………………………………………………… 30 3.5.1 Objectives…………………………………………………………………… 30 3.5.2 Interviewees………………………………………………………………… 30 3.5.3 Survey method……………………………….……………………………… 32 3.5.4 Data analysis ……………………………….……………………………… 32 CHAPRTER : ATM CARD MARKET ….…………………………………… 33 4.1 Overview about ATM card market at Vietnam ….………………………… 33 4.2 Bank alliances in Vietnam ….……………………………………………… 36 CHAPRTER : RESEARCH FINDINGS ….……………………………….… 37 5.1 Overview of respondent profile ………………………………………….… 37 5.2 Brand awareness ……………………………………………………… … 39 5.3 Research on ATM card usage …………………………………………… 41 5.3.1 Penetrationof ATM card ………………………………………………… 41 5.3.2 Number of ATM cards own and use ……………………………………… 41 5.3.3 Length of ATM cards usage ……………………………………………… 42 5.3.4 Bank of current usage ATM cards ………………………………………… 42 5.3.5 Average money of each withdrawal ……………………………………… 43 5.3.6 Active services linkage with ATM cards …………………………………… 44 5.3.7 People influence to the choice about bank of ATM cards ………………… 44 5.3.8 Place to registered current usage ATM cards …………………………… 45 5.3.9 Level of satisfaction with current usage ATM cards ……………………… 47 5.4 The barrier of ATM cards non-users……………………………………… 47 5.5 New ATM card and service ………………………………………………… 48 5.5.1 Intend to have new card ………………………………………….………… 48 5.5.2 Bank choose in future for new ATM cards ………………………………… 49 5.5.3 Source of information to decide banks for new ATM cards ……………… 50 5.5.4 Kinds of information to decide banks for new ATM card ……………….… 51 5.5.5 Acceptable fee for new ATM cards ………………………………… ….… 52 5.5.6 Place to register new ATM cards …………………………………….… 53 5.5.7 Impact of promotion program ………………………………………….… 54 5.5.8 Criteria of new ATM cards ………………………………………….… 55 5.5.9 Evaluation services related to ATM cards……………………………… 56 5.6 Research on banks ………………………………………….…………… 57 CHAPRTER 6: CONCLUSTION AND RECOMMENDATION …………… 60 6.1 Research finding conclusion ……………………………………………… 60 6.1.1 About scale system………………………………………………………… 60 6.1.2 About the research finding ………………………………………………… 61 6.2 Recommendation for banks at HCM city ………………………………… 62 6.2.1 Product…………………………………………………………………… 62 6.2.2 Price ……………………………………………………………………………… 63 6.2.3 Place ……………………………………………………………………… 6.2.4 Promotion ………………………………………………………………… 6.2 Limitation ………………………………………………………………… APPENDIX Interview guideline for focus group discussion Questionnaire Statistic and test analysis with SPSS REFERENCE LIST OF FIGURES Figure 2.1: Model of consumer behavior ………………………………… Figure 2.2: Maslow’s hierarchy of needs ………………………………… 12 Figure 2.3: Buyer decision process………………………………………… 15 Figure 2.4:Steps between evaluation of alternatives and purchase decision 17 Figure 2.5: Four types of Consumer Buying Behavior …… …………… 19 Figure 2.6: The Adoption Process ………………………………………… 21 LIST OF CHARTS Chart 5.1: Respondent Profile Analysis – Gender …………………………… 37 Chart 5.2: Respondent Profile Analysis - Age ………………………………… 37 Chart 5.3: Respondent Profile Analysis – Occupation ………………………… 38 Chart 5.4: Respondent Profile Analysis – Monthly Income …………………… 38 Chart 5.5: Respondent Profile Analysis – Education …………………………… 39 Chart 5.6: Top of mind awareness ……………………………………………… 39 Chart 5.7: Spontaneous brand awareness ……………………………………… 40 Chart 5.8: Aided brand awareness ……………………………………………… 40 Chart 5.9: Penetration of ATM card …………………………………………… 41 Chart 5.10: Number of ATM card own and use ………………………………… 41 Chart 5.11: Length of ATM cards usage ………………………………………… 42 Chart 5.12: Bank of current usage ATM cards ………………………………… 43 Chart 5.13: Average money of each withdraw ………………………………… 43 Chart 5.14: Active services linkage with ATM cards ………………………… 44 Chart 5.15: People influence to the choice about bank of ATM cards ………… 45 Chart 5.16: Place to registered current ATM cards ……………………………… 46 Chart 5.17: Reason to chose that place to registered current ATM cards ……… 47 Chart 5.18: Level of satisfaction with current usage ATM cards ……………… 47 Chart 5.19: The barrier of ATM cards non-users ………………………………… 48 Chart 5.20: Intend to have new card …………………………………………… 49 Chart 5.21: Bank chose in future for new ATM cards ………………………… 50 Chart 5.22: Sources of information to decide banks for new ATM cards ……… 51 Chart 5.23: Kinds of information to decide banks for new ATM cards………… 52 Chart 5.24: Acceptable fee for new ATM cards ………………………………… 53 Chart 5.25: Place to register new ATM cards …………………………………… 53 Chart 5.26: Criteria to decide place for new ATM cards registration ………… 54 Chart 5.27: Impact of promotion program on decision for new ATM cards …… 55 Chart 5.28: Criteria of new ATM cards ………………………………………… 55 Chart 5.29: Evaluation service related to ATM cards …………………………… 56 Chart 5.30: Evaluation of banks ………………………………………………… 57 Chart 5.31: Evaluation attractiveness of banks …………………………………… 58 xi Thu nhap binh quan * Ngan hang phat hanh Crosstabulation Count Ngan hang phat hanh Dong A Thu nhap binh quan Total 1-3 trieu dong 2 3-5 trieu dong 4 5-7 trieu dong 12 12 7-10 trieu dong 5 10-15 trieu dong 5 Tren 15 trieu dong 2 30 30 Total Thu nhap binh quan * Ngan hang phat hanh Crosstabulation Count Ngan hang phat hanh Sacombank Thu nhap binh quan Total 1-3 trieu dong 2 3-5 trieu dong 7 5-7 trieu dong 6 7-10 trieu dong 3 10-15 trieu dong 1 Tren 15 trieu dong 1 20 20 Total xii Thu nhap binh quan * Ngan hang phat hanh Crosstabulation Count Ngan hang phat hanh Techcombank Thu nhap binh quan Total 1-3 trieu dong 1 3-5 trieu dong 5 5-7 trieu dong 4 7-10 trieu dong 1 10-15 trieu dong 2 Tren 15 trieu dong 3 16 16 Total Thu nhap binh quan * Ngan hang phat hanh Crosstabulation Count Ngan hang phat hanh HSBC Thu nhap binh quan Total 3-5 trieu dong 1 10-15 trieu dong 1 Total 2 Thu nhap binh quan * Ngan hang phat hanh Crosstabulation Count Ngan hang phat hanh BIDV Thu nhap binh quan Total 3-5 trieu dong 2 Tren 15 trieu dong 1 Total 3 xiii Cross tab test between occupation and bank ofcurrent usage ATM card Nghe nghiep * Ngan hang phat hanh Crosstabulation Count Ngan hang phat hanh ACB Nghe nghiep Total Quan ly 4 Nhan vien van phong 5 Cong nhan 5 Tu kinh doanh 1 4 1 20 20 Nghe chuyen mon (Bac si/Luat su/Ky su/Giao vien) Sinh vien Total Nghe nghiep * Ngan hang phat hanh Crosstabulation Count Ngan hang phat hanh Vietcombank Nghe nghiep Quan ly Total 3 12 12 Cong nhan 3 Tu kinh doanh 4 2 Noi tro 3 Sinh vien 3 30 30 Nhan vien van phong Nghe chuyen mon (Bac si/Luat su/Ky su/Giao vien) Total xiv Nghe nghiep * Ngan hang phat hanh Crosstabulation Count Ngan hang phat hanh Dong A Nghe nghiep Quan ly Total 3 12 12 Cong nhan 4 Tu kinh doanh 6 3 Noi tro 1 Sinh vien 1 30 30 Nhan vien van phong Nghe chuyen mon (Bac si/Luat su/Ky su/Giao vien) Total Nghe nghiep * Ngan hang phat hanh Crosstabulation Count Ngan hang phat hanh Sacombank Nghe nghiep Total Quan ly 1 Nhan vien van phong 9 Cong nhan 2 Tu kinh doanh 1 2 Noi tro 2 Sinh vien 3 20 20 Nghe chuyen mon (Bac si/Luat su/Ky su/Giao vien) Total xv Nghe nghiep * Ngan hang phat hanh Crosstabulation Count Ngan hang phat hanh Techcombank Nghe nghiep Total Quan ly 3 Nhan vien van phong 6 Cong nhan 2 Tu kinh doanh 1 1 Noi tro 2 Sinh vien 1 16 16 Nghe chuyen mon (Bac si/Luat su/Ky su/Giao vien) Total Nghe nghiep * Ngan hang phat hanh Crosstabulation Count Ngan hang phat hanh HSBC Nghe nghiep Total Quan ly 1 Nhan vien van phong 1 Total 2 xvi Nghe nghiep * Ngan hang phat hanh Crosstabulation Count Ngan hang phat hanh BIDV Nghe nghiep Total Nhan vien van phong 1 Tu kinh doanh 1 Noi tro 1 Total 3 xvii Cross tab test between income of respondents and chosed bank for new ATM card Thu nhap binh quan * Ngan hang co the chon Crosstabulation Count Ngan hang co the chon Vietcombank Thu nhap binh quan Total 1-3 trieu dong 5 3-5 trieu dong 3 5-7 trieu dong 6 7-10 trieu dong 1 10-15 trieu dong 2 Tren 15 trieu dong 1 18 18 Total Thu nhap binh quan * Ngan hang co the chon Crosstabulation Count Ngan hang co the chon ACB Thu nhap binh quan Total 1-3 trieu dong 1 3-5 trieu dong 3 5-7 trieu dong 7 7-10 trieu dong 3 Tren 15 trieu dong 1 15 15 Total xviii Thu nhap binh quan * Ngan hang co the chon Crosstabulation Count Ngan hang co the chon Dong A Thu nhap binh quan Total 1-3 trieu dong 1 3-5 trieu dong 3 5-7 trieu dong 5 7-10 trieu dong 3 10-15 trieu dong 2 14 14 Total Thu nhap binh quan * Ngan hang co the chon Crosstabulation Count Ngan hang co the chon Sacombank Thu nhap binh quan Total 1-3 trieu dong 1 3-5 trieu dong 2 5-7 trieu dong 3 7-10 trieu dong 1 10-15 trieu dong 3 Tren 15 trieu dong 2 12 12 Total xix Thu nhap binh quan * Ngan hang co the chon Crosstabulation Count Ngan hang co the chon Techcombank Thu nhap binh quan Total 1-3 trieu dong 1 3-5 trieu dong 3 5-7 trieu dong 4 7-10 trieu dong 2 10-15 trieu dong 1 11 11 Total Thu nhap binh quan * Ngan hang co the chon Crosstabulation Count Ngan hang co the chon HSBC Thu nhap binh quan Total 1-3 trieu dong 2 3-5 trieu dong 2 5-7 trieu dong 4 10-15 trieu dong 1 Tren 15 trieu dong 1 10 10 Total xx Thu nhap binh quan * Ngan hang co the chon Crosstabulation Count Ngan hang co the chon BIDV Thu nhap binh quan Total 1-3 trieu dong 2 3-5 trieu dong 3 5-7 trieu dong 2 7-10 trieu dong 1 10-15 trieu dong 1 Tren 15 trieu dong 1 10 10 Total xxi Cross tab between income of respondent and affordable fee for new ATM card registration Thu nhap binh quan * Muc phi phat hanh Crosstabulation Count Muc phi phat hanh Duoi 50,000 Tu 50,000 - Tu 75,000 - Tren 100,000 dong 75,000 dong 100,000 dong dong Thu nhap 1-3 trieu dong binh quan Total 2 11 3-5 trieu dong 6 16 5-7 trieu dong 24 7-10 trieu dong 10 10-15 trieu dong 3 Tren 15 trieu dong 2 23 29 19 75 Total Cross tab test between length of ATM card usage and frequency of usage Su dung bao lau * Muc su dung Crosstabulation Count Muc su dung Su dung tren Su dung lan Su dung bao lau Su dung lan llan Total Duoi thang 14 Tu - 12 thang 8 22 Tu 1-2 nam 15 10 28 Tu 3-4 nam 10 16 Tren nam 16 38 32 86 Total xxii Mean test of importance of inforamtion for registering new ATM card Descriptive Statistics N Minimum Maximum Mean Std Deviation Phi phat hanh the moi 75 3.65 966 Han muc rut tien 75 3.72 798 Phi rut tien 75 4.07 859 So luong diem giao dich 75 3.77 831 So luong may ATM 75 3.72 938 Lien ket cac ngan hang khac 75 3.88 821 Lien ket tien ich 75 3.93 827 Uy tin cua ngan hang 75 3.77 909 Da dang dich vu 75 3.64 1.061 Valid N (listwise) 75 10 Mean test of importance of factors about choosing place to resigter new ATM card Descriptive Statistics Std N Minimum Maximum Mean Deviation Tam quan - gan co quan/gan nha 75 3.88 1.039 Tam quan - dich vu tu van 75 3.64 954 Tam quan - an toan, dam bao 75 3.72 798 Tam quan - phuc vu nhanh 75 3.64 1.061 Tam quan - da dang dich vu ca nhan 75 3.31 1.294 75 3.84 886 Tam quan - uy tin cua ngan hang 75 3.72 952 Valid N (listwise) 75 Tam quan - thai phuc vu cua nhan vien ngan hang xxiii 11 Mean test of influence of promotion program on register new ATM card Descriptive Statistics Std N Minimum Maximum Mean Deviation Hinh thuc khuyen mai - mien phi phat hanh 57 4.65 481 Hinh thuc khuyen mai - tang kem dich vu khac 11 5 5.00 000 32 4.87 554 Hinh thuc khuyen mai - tham kha khuyen mai may man Valid N (listwise) 12 Mean test of like about service for ATM card Descriptive Statistics Std N Danh gia dich vu - nhan tin thay doi tai khoan Minimum Maximum Mean Deviation 75 4.47 664 75 3.87 1.018 Danh gia dich vu - lien ket tien ich 75 4.29 882 Danh gia dich vu - duong day lien lac 24/24 75 3.72 798 Danh gia dich vu - thong tin diem dat may ATM 75 4.40 697 75 4.20 788 Danh gia dich vu - lai suat khong ky han uu dai 75 3.88 821 Valid N (listwise) 75 Danh gia dich vu - kiem soat tai khoan tren Internet Danh gia dich vu - co the rut tien o may ATM ngan hang khac xxiv 13 Mean test of importance about criteria for new ATM card Descriptive Statistics Std N Minimum Maximum Mean Deviation Tam quan tieu chuan - chat luong the tot 75 3.95 733 Tam quan tieu chuan - thiet ke the dep 75 3.87 759 Tam quan tieu chuan - de bao quan 75 4.09 791 75 4.13 827 75 4.29 802 Tam quan tieu chuan - thong tin lien lac can thiet Tam quan tieu chuan - de su dung Tam quan tieu chuan – khac Valid N (listwise) 14 Mean test of attrativeness of banks at HCM city Descriptive Statistics N Minimum Maximum Mean Std Deviation Muc loi cuoi/ hap dan - Vietcombank 93 4.05 1.210 Muc loi cuoi/ hap dan - ACB 93 4.99 1.247 Muc loi cuoi/ hap dan - Dong A 92 4.26 1.300 Muc loi cuoi/ hap dan - Sacombank 93 4.34 1.220 Muc loi cuoi/ hap dan - Techcombank 93 4.34 1.363 Muc loi cuoi/ hap dan - HSBC 93 4.17 1.449 Muc loi cuoi/ hap dan - BIDV 93 3.97 1.306 Valid N (listwise) 92 REFERENCES Kotler Philip, Management Marketing , Prentice Hall, Millennium edition Kotler Philip, Armstrong Gary, Saunders John, Wong Veronica , Principle of Marketing, third edition, 2001 Hoang Trong and Chu Nguyen Mong Ngoc, Data analysis with SPSS, Statistics Publisher, Hanoi, 2005 Gordon R Foxall, Consumer Behavior Analysis, Routledge, 2002 Solomon Michael, Bamossy Garry, Soren Askegaard, Magaret K Hogg, Consumer behabior- A European Perspective , 3rd edition, Prentice hall, 2006 Neal Quester Hawkins, Consumer Behavior, 3rd edition, McGraw Hill, 2002 Articles on website: Consumer Purchase Decision Process http://www-rohan.sdsu.edu/~renglish/370/notes/chapt05/ Bank Marketing: A two pronged approach www.coolavenues.com/ /bank-marketing-two-pronged-approach Have Debit Cards Changed Thai Consumer Shopping Behavior? www.ccsenet.org/journal.htm 10 The Adoption of Automatic Teller Machines in Nigeria http://iisit.org/Vol6/IISITv6p373-393Olatokun631.pdf 11 How Customer Behavior and Technology Will Change the Future of Financial Services http://www.downeu.com/ebook 12 Database Marketing and Method of Customer Behavior Analysis http://www.seiofbluemountain.com/upload/product/200911/2008jrhy05a3.pdf ... bank of ATM cards ………………… 44 5.3.8 Place to registered current usage ATM cards …………………………… 45 5.3.9 Level of satisfaction with current usage ATM cards ……………………… 47 5.4 The barrier of ATM cards. .. strategy of card service; then sustaining the position and gain more market share in banking industry This is also the rationale of research CONSUMER BEHAVIOR TOWARD ATM CARDS AT HO CHI MINH CITY ... of ATM cards ………… 45 Chart 5.16: Place to registered current ATM cards ……………………………… 46 Chart 5.17: Reason to chose that place to registered current ATM cards ……… 47 Chart 5.18: Level of satisfaction