EAE MLL OM LOLI PEI MERE DLE DE SEED MBSE LEME ER SL GRE LELENT BME SEE # ~~ @ouM OPEN UNIVERSITY MALAYSIA REE SEER, RESEARCH PROJECT (BMBRS5103) (MIE ASR RET AOA ET s09 coen
IMPROVING RETAIL BANKING SEVICE OF JOINT STOCK COMMERCIAL BANK
Trang 2ACKNOWLEDGMENT
On the very outset of this report, I would like to extend my sincere & heartfelt obligation towards all the personages who have helped me in this endeavor Without their active guidance, help, cooperation & encouragement, I would not have made headway in the project
I would like to express our sincere thanks to the Bank for BIDV at SaiGon Nroth Branch and colleagues for their support and help me to complete this study
I am extremely thankful and pay my gratitude to my faculty Dr Bui Phi Hung for his valuable guidance and support on completetion of this project in its
presently
I also acknowledge with a deep sense of reverence, my gratitude towards my family, who has always supported me morally as well as economically
At last but no least gratitude goes to all of my friends who directly or
indirectly helped me to complete this project report
Any omission in this brief acknowledgement does not mean lack of gratitude
Trang 3Advisor’s assessment
Advisor’s signature
Trang 4EXECUTIVE SUMMARY
In trending world today's, the developing countries guide people to use a daily transaction as a credit card, ATM card, transfer money online The daily transactions of consumers purchase goods at supermarkets, going to restaurants, shopping, taxi should use plastic cards instead of cash Moreover, the current BIDV
has to find the benefits of the development of retail banking market and has
continuously studied the plans déveloped this market Developing retail banking
market will has got fewer risks as in wholesale banking markets, however the
workload will increase a lot than Because every individual will has been taken cared as a wholesale customer As can be seen, Vietnam has ninety million inhabitants, if the BIDV will have ten percentage of ninety million people, equal to serve nine million customers, it seems be have nine million wholesale banking
customers Thus, the retail banking market will be extremely attractive market, no
less than the wholesale banking market
Moreover, the development of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) to 2018 will be focus to develop retail banking customers and increase quality effectively Besides, the strategy business plan is going to high quality services for customers better, and how to improve the quality of retail banking services in the Joint Stock Commercial Bank for Investment and Development of Vietnam - at Saigon North Branch It is essential to servers BIDV's customers and ensure the sustainable development of the bank
Trang 5TABLE OF CONTENT ACKNOWLEDGMENT EXECUTIVE SUMMARY TABLE OF CONTENT LIST OF FORM LIST OF TABLE
CHAPTER I: INTRODUCTION oo eesesessseessseresssreressecetsssesenseeeeeseeees 1 1.1 Introduction oo ee eesccsneceneconseescensensrssssaseeesseesssseesensesssessseseseeessesssseeegs 1 IV na 1 IS C n0- 0 2 1.4 Object and scope of the sfudy - LH TH HH KH kg 2 1.4.1 Subjects Research 0 ec 2 ID Vi lon nổ ố e 2 IS C0 ốo an 2 1.6 The meaning and application sfudy -. Ă- nen HH kh 3 1.7 TheSIS SÍTUCẨUTG Ăn HH HH TH HH TH HH HH TH 0g kg 3 0.0 040.).01-00/0:).9.0)00.3.8.4 402.1 5
2.1 Products - Retail banking - - 5< ng HH HH HH kh 5
2.1.1 Product - traditional retall S€TVIC©S ST HH HH HH HH nh khu 5 2.1.2 Product - Retail banking moderni1zation 55 «se nen rkreeere 6 VY/ÊN.C ĩ8 iu an - 6 2.2.1 The concept of retall banking S€FVIC€ cá SH HH HH HH ng 6 2.2.2 Characteristics of the retail banking S€TVIC€ - 5S SĂS SA 7 Và o0 chẽ 8 2.3.1 The concept of quality OŸ S€TVIC€ - Ăn HH TH HH kg kết 8 2.3.2 Features of the S€TVIC€ LH HH ng HH in 9
2.4 The relationship between service quality and custormner satisfaction 10
Trang 62.4.2 The relationship between service quality and customer satisfaction 11
2.5 The model of service quaÏify assessimmen( sen ke 11
PS ƠNG À(900.3 0 0 .e 11
2.5.2 Model oftechnical quality and quality of skiÏÍS - 55c -<+sseeserreree 15 2.5.3 Quality of Service Model BSQ Bank (Bank Service Qualify) 15 P, N9 nan nẽ nố 17
CHAPTER III: METHODOLOGY AND DATA COLLECTION METHOD 18
3.1 Introduction kg HH TH HH H108 0011119114 18 3.2 Quality retail banking services at the BIDV Saigon North Branch 18 3.2.1 Build qualify research model of retail banking serViC€S - cccScSẰ: 18
3.2.2 Build quality scale retail banking services BSQ eeheeee 19
3.2.2.1 Quality Scale Retail banking S€rVIC€S . - HH HH re 19 3.2.2.2 Scale satisfaction and perceived quality of retail banking customers 20 3.3 Design and Research Methods . - Ăn HH ng ke 20 3.3.1 oi an 21 3.3.1.1 Technique plays, group discussions 0.0.0.0 eeeeeeecereeeseesessesesssessaseseseneesens 21 3.3.1.2 Scale adjustment 0.0 ccccesceeseceeeteseesseesnseeseeseseseseessasensceeutseusiasesesoneaas 21 3.3.1.3 Designing the surVey qu€SfIOTTIAIT€ - - Ăn ng Hư kh 21 K0 6 22 3.3.2.1 Methods of collecting information and sample size TL HT ghe 22 3.3.2.2 The plan data analysis cece esceeeseeneeseceeesssseeesesnasceeeseessesenesssearentsees 23
E6 Oố nh ốc cố ố e e 23
CHAPTER IV: RESULTS, FINDINGS AND PRESENTATION OF DATA 24
Go ốc Ầ 24
4.2 Sample †€stlng -.-cc Ác HH TH nh HT HH ng 24 4.3 Rating scales with Cronbach's coefficient alpha reliabllify - .«« 26 4.3.1 Result analysis quality scale retail banking services modeled BSQ 26 4.3.2 Analytical results satisfaction scale and perceived
Trang 74.4 The rating scale using factor analysis to discover
EEA, adjust the research model was first time - nh HH eg 28
4.4.1 Quality scale retail banking services based on the model BSQ 28
4.4.2 Adjust the research model was first time ese eeseeseeesseeseees ese teeeenseenensoes 30 4.4.3 Scale satisfaction and perceived quality of banking services Retail CUSfOrn€rS .- 2 cà SH ng ng 31 4.5 Test the research model BSQ by multiple regression analys1s 31
4.5.1 Considering the correlation matrix of variables ke 32 4.5.2 Multiple regression aniaÌySIS - sàng TH HT HH nhiệt 32 4.5.3 Adjust the 2nd research modelÌ - - - - - < s9 HH ngư 34 "9u nh ằe 35
CHAPTER V: DISCUSSION AND ANALYSIS OF FINDINGS 36
ho 36
5.2 Discussion of (ca na 36
5.2.1 Status of quality assurance elements of retail banking Co 0i89 0:6 36
1 nNN.'os nh ố 37
5.2.1.2 Valuation tangible and portfolio of products and S€TViC€S - 38
5.2.1.3 Reliable _— 38
5.2.1.4 Efficlent and s€CUT€ - sọ HH ng ng ng ch 39 5.2.2 Solutions to improve the quality of retail banking services at the BIDV North Saigon branch 8018 39
5.2.2.1 Solutions to improve aCC€ss[bi]Ify chưng re 39 5.2.2.2 Advanced soiutions and tangible valuation of product service 40
Trang 8Sẽ o8 on 43
2A Bìa 26 ố ố ẽ 43
6.3 (sốc con na 44
6.3.1 Completely the business management of retail banking 44
Trang 9LIST OF FORM
Form 2.1: SERVQUAL model — Five-distance service quality -‹ : 14 Form 2.2: Service quality model of GrƯnrO0S - cà cL.t2 121211111112 ngư 15 From 2.3: Model bank service quality BSQ Úc HH 021010114112 0 ru 17 Form 3.1 : Quality assessment model of retail banking services - 18 From 4.1: Adjusted model 1st assess the quality of retail banking services 30
Trang 10LIST OF TABLE
Table 2.1: Samples distributed according to respondenfs cuc 25 Table 2.2: Cronbach's alpha coefficient scale components of quality retail banking
“52 TP ¬ 26
Table 2.3: Cronbach's alpha coefficient components satisfaction scale 28 Table 2.4: Results analysis EFA and analysis Cronbach’s Apha scale components of quality retail banking s€TVIC€S dc SH HH HH TH nghệ 29 Table 2.5: Results of scale EFA levels of customer satisfaction c› 31 Table 2.6: Correlation coefficierit$ Ima†F1X ĩc ng HH net 32 Table 2.7: Test the relevance of the mod€l -. LH HH ng 33
Table 2.8: Results of linear regression analysis multiples c <<<c+ 33
Trang 11CHAPTER I: INTRODUCTION
1.1 Introduction
Commercial banks which have the most fundamental task of the bank, such
as raising capital and lending Moreover, commercial banks as a bridge between individuals and organizations, transfers free pretty cash to investment Commercial banking activities have a profit from collect free money and loan And then, it pays interest rates lower capital loan interest rates, the difference in interest rates is the bank's profits Activities of a commercial bank serving the needs of all classes of capital people, types of businesses and other organizations in society
To develop retail banking services, the bank needs to supply products and services to individual user individual, small and medium-sized businesses through a network of affiliates or customers have direct access to products, banking services via the media, electronics and telecommunications The bank's activities are mainly mobilized capital from all economic sectors and loans to solve the problem of consumption or production projects with small and medium scale Therefore, the retail banking services have a less risk and long-term profitability than the whole sale service of bank
1.2 Research objectives
This study aimed at specific research as below:
- Systemize basic theory of the business and retail banking activities of commercial banks
- Building a model of research quality relationship in the model BSQ services (Bank Service Quality) suitable for retail banking services in Vietnam
- Testing of the model assumptions and identify the components affecting customer satisfaction for the quality of retail banking services
Trang 12- Propose some solutions to enhance customer satisfaction when using the retail banking services to contribute to improving the competitiveness of the bank 1.3 Research Question:
In order to determine customer satisfaction on service quality of commercial banks in today and Commercial Bank of Investment and Development of Vietnam -
Saigon Branch North in particular, research projects answer the question:
How to improve the quality of banking services retail?
1.4 Object and scope of the study:
1.4.1 Subjects Research:
Quality retail banking services based on customer perceptions are using retail products and services in Commercial Bank for Investment and Development of Vietnam - North Saigon Branch
1.4.2 Scope of the study:
The scope of the research study was to investigate the clients have been using the services of retail banking Joint Stock Commercial Bank for Investment and Development of Vietnam - Saigon North Branch (BIDV BSG), Commercial Bank Asia (ACB) and other commercial banks in the province Ho Chi Minh City from 2015 to 2018
1.5 Research Methodology
Research methodology is done on the basis of a combination of business projects and academic researchers to repeat:
“* Business project: using secondary data BSG BIDV combined with statistical data describing the information survey of primary data to assess the status of quality retail banking services in the Bank BSG through descriptive statistical methods, synthesis, system, compare, in order to propose solutions to improve quality of retail banking services at BIDV BSG
Trang 13Qualitative research:
Thesis is including technical plays and group discussions with people who are using the services of retail banking at BSG BIDV, ACB, other commercial banks to explore, to adjust the scale of quality banking services retail Thereby, it is
building a preliminary questionnaire Moreover, it interviews to try 30 people to check the level of clarity of questionnaires, evaluation results with the correct
answer is not necessary to gather information Quantitative research:
Additionly, it completes the survey questionnaire to conduct research to
expand the customer survey are using retail banking services in BSG BIDV, ACB, other commercial banks in the province Ho Chi Minh City Information collection
methods used in this study were interviewed directly in a questionnaire has been prepared Interview questionnaire included 31 variables built quality of service measurement, in which 28 variables measuring the quality of service and 3 variables measuring customer satisfaction (details presented in Chapter 3 of the building level)
1.6 The meaning and application study:
This study summary and strengthen the knowledge base of the retail banking activities of a commercial bank, knowledge of service quality, reviews the relationship between service quality and customer satisfaction In other hand, construction quality evaluation model of retail banking services and offering
solutions that contribute to improving the quality of retail services, to help
customers feel satisfied when using banking services
1.7 Thesis structure:
Thesis structure designed six chapters Chapter 1- Introduction provides the foundation of the research with the identification of research questions and goals Chapter 2 - consider the theories and studies related to the extensive knowledge of
improving retail banking services of Bank BIDV BSG, providing a theoretical point
Trang 14to the right choice of philosophical research, methods, approaches and data
collection Chapter 4 - Data analysis / detection, based on the conceptual framework
Trang 15CHAPTER IL: LITERATURE REVIEW
2.1 Products - Retail banking:
2.1.1 Product - traditional retail services:
- Products - Services raise capital:
Capital mobilization is one of the major products and services and most importantly of commercial banks This is a professional debt assets contributed to
form the capital of banks From this has helped mobilize resources banks can continue to perform services for credit and other services provided to its customers
- Products - Retail financial services:
Products and services include retail credit lending forms as targetsuse, personal loans according to specific purposes, such as support for housing loans,
auto loans, student loans, business loans, mortgage loans, discount of valuable papers, the credit loan customers are individuals, households, but the total
amount of the loan is a huge
- Product- payment service:
Payment services are services that use the non-payment by cash to carry out payment transactions of customers as the deducting money from own's accounts payable transferred to the beneficiary's account information accounting profession through bank payments Currently to make payments via bank, the customer can choose one form of payment has been issued in the regulation of payment via banks as below: payment by debit authorization, authorized to collect , by check, by letters
of credit,
- Other Services Products:
Trang 162.1.2 Product - Retail banking modernization:
Modern banking services are the best services and server customers through modern distribution channels is applied on the basis of modern technologies with the cost of investment is large, bring a lot of new benefical for customers While
‘overcoming difficulties and obstacles traditional distribution channels which were not implemented, including:
- Card Services:
Card banking is a banking product multi utility based introduction of modern
technology, it means payment by non cash and help reduce cash flow Accordingly,
the customer is the cardholder can use the service to withdraw cash, transfer,
balance inquiry, bill payment, payment for goods and countless other gadgets in the correspondent banking, at the point of accepting payment cards or automated teller machines
Currently there are two types of cards are provided by commercial banks,
which is kind of ATM carddomestic banks by issuing and use in Vietnam and international payment cards as VISA and MASTER circulated worldwide and very popular in the developed countries
- Electronic Banking Services:
This is a new modern service development, potentially helping customers access remote access to account information inquiry, carry out payment transactions, required to submit savings or other requirements relating to your account through connect your computer network with the bank account
management
2.2 Retail Banking:
2.2.1 The concept of retail banking service:
Trang 17(2003) [I.7], services are all activities and results that a party may give the other party, mostly invisible, does not lead to ownership of something dirty Its products can be tied or not tied to a physical product
According to ISO 8402: 1999, as a result services created to meet the requirements of customers in the operation of contact between the supplier -
customer and internal operations of the provider.Thus, the service covers the whole
of the activities or interests to create value for customer use, to satisfy the needs and
expectations of customers
2.2.2 Characteristics of the retail banking service:
According to Ta Thi Kieu An author et al (2010) [I.9, page 96], the service has the following characteristics:
- The simultaneity, not divided:
This characteristic occurs continuously, meaning that the process of
providing and receiving services carried out simultaneously, at the same time with the presence of the customer during the production Therefore, the quality of service will be very difficult to predict which will be dependent on subjective judgments
and of course, we can not accumulate reserves as well as services can not test
before
- Heterogeneity, unstable:
Quality of service depends on who done, time and location provided Therefore, organizations can not rely on the final checks to assess the quality of service they provide This is an important feature that suppliers should note that if you want to improve the quality of its services
- Invisibility of the service:
Trang 18- Vulnerability, not kept:
Services are intangible so for is very fragile, suppliers and recipients can not
retain, unable to be consumed or sold for some time afterwards
2.3 Service quality of banks:
2.3.1 The concept of quality of service:
Parasuraman & CTG (1985) [II.9] made the definition of quality of service, according to customers about the great and the general of an entity It is a kind of
attitude and the result from a comparison between what was expected and our
perception of things get Quality of service is the gap between the expectations of
the customer service and their perceptions when used across services Sharing views
with Parasuraman, Lewis and Booms (1983) [II.12] also said that service quality is a measure of the level of service the customer should be taken commensurate with the expectations of how well customers Moreover,creating a quality service that meets customer expectations consistently
This statement clearly demonstrates that the quality of services related to customers' expectations and their perception of the service In addition, Parasuraman and CTG (1988) [II.10] explained that to know the predictions of the best customers is to identify and understand the needs of their internal The development of a system to the expectations of our customers is essential And then we have a new strategy for the service quality effectively
Beside the introduction of the definition of quality of service, authors have studied and proposed models, different approaches to assess the quality of service Moreover, Lehtinen & Lehtinen (1982) [11.8] for the quality of services must be assessed on two aspects, (1) the service provider (process) and (2) the results of the service (output).Additionly, Grénroos (1984) [II.6] given model quality evaluation services to the two components of quality of service, that is (1) the technical quality, is what actual customers receive and (2) the quality of the function, the way services
Trang 19Parasuraman & CTG (1988) [IJ.10] has research and testing services in various fields of application components scale of service quality (SERVQUAL) for assessing the quality of services Even using the SERVQUAL scale has been inspected on relevance in-evaluating the quality of customer service in many different sectors However, other studies also indicated each component in the
servqual can be changed at each service and each different countries (Cronin &
Taylor, 1992) [II.4]
Lassar & CTG's research (2000) [II.7] have shown the existence relationship between service quality and customer satisfaction, although these are two different concepts (Parasuraman, 1985, 1988) [IJ.10, II.9] has shown that the quality of service, is determined by many different factors, are partial determinants of
satisfaction Cronin & Taylor's study (1992) [II.4] has tested this relationship and
concluded that the perceived quality of service should lead customer satisfaction
Studies have concluded that the quality of service is the premise of satisfaction
(Cronin & Taylor, 1992) [II.4] and is a key factor affecting satisfaction Based on the premise of previous studies, researchers Lassar & CTG (2000) [IL7], have pointed out the three criteria to reflect the quality of service, including: (1) How satisfied pleased with the quality of service (2) The ready to introduce service to others when asked (3) The commitment to continue to use the service (loyalty)
2.3.2 Features of the service:
Although there are many different concepts of quality of service, but at a overall quality of the service includes the following characteristics (according to Ta
Thi Kieu An author et al, 2010 [1.9, pages 99-100]):
The first characteristic, according to Professor Noriaki Kano (1984),
attributes of a services are divided into three levels:
- Level 1: basic expectations that services must be These are attached customer property not mentioned, but they say for granted Do not respond to this
Trang 20- Level 2: specific requirements, also known as a dimension attribute But this attribute is often referred to as a function that customers want The higher the level of response, more satisfied customers
- Level 3: attractive factors This is the surprise factor, to make a difference with the services of the same type of opponent However, this factor is not constant over time it will gradually become a basic expectation that services should meet
The second characteristic of the quality of service is the specific market conditions Catch on a certain business process, product types are linked with an identified market A service is appreciated in case it meets the existing needs of the market as well as the request of interested parties
The third characteristic is also a key element of the service quality is measured Measuring the satisfaction of customer needs Service quality is measured by customer satisfaction Therefore, the most important thing of any public business process is to listen to the voice of the person using the product
2.4 The relationship between service quality and customer satisfaction:
2.4.1 The concept of customer satisfaction:
The quality of service is often the customer satisfaction Customer satisfaction is based on the marketing concept of satisfying the needs and wishes of customers Satisfied customers is a key factor to sustain long-term success in business and trading strategies appropriate to maintain customer hutva collection
According to Philip Kotler (2003) [1.7], the satisfaction level of the state is
feltone's sense derived from the comparison of a product awareness than his
Trang 212.4.2 The relationship between service quality and customer satisfaction:
Many authors have studied customer satisfaction in the field services and
have generally concluded that the quality of service and customer satisfaction are
the two concepts are distinguished
According Zeithaml & Bitner, (2000) [II.11], the customer satisfaction is a general concept speaks to their satisfaction when using a service, also said the quality is concerned about the specific components of the service Many practical study of the relationship between service quality service and customer satisfaction Additionally, Cronin & Taylor (1992) [II.4] has tested this relationship and concluded that the quality of service is the premise of satisfaction and the key
factors affecting satisfaction Moreover, research by Lassar & et al (2000) [II.7] made three criteria canreflects the quality of service and customer satisfaction with
retail banking services, including:
- The expectations of customers using banking services than the actual retail customers receive
- Benefits customers get to use retail banking services, intends to introduce
friends and relatives to use
- Italy is ready to continue to use retail banking services
2.5 The model of service quality assessment:
2.5.1 SERVQUAL model:
SERVQUAL model developed by Parasuraman et al (1985) [I9] given model year gap and ten service quality components, called SERVQUAL Parasuraman said that the quality of services in general can not identify which
depends on the customer's perception of service and the feeling that this is a review
Trang 22s* Five gap quality of service include:
~ The first gap occurs when there is a difference between customer expectations for quality of service and banking executives feel about the customer's expectations Basic point of this gap is due to bank executives do not understand all these characteristics make up the quality of our services and how to transfer them to customers to satisfy their needs
- The second gap between the perception of banking executives with specific requirements on service quality This gap occurs when banks had difficulty in shifting our perception of the customer expectation of quality properties
- Third gap between the quality of service requirements and service performance This gap occurs when bank employees do not transfer to the customer service in accordance with these criteria have been identified
- Four gap is the distance between the actual supply of banking services
and external communication with customers The information provided to customers, the program promises in the service provider fails to comply will reduce
customers’ expectations :
- Fifth gap is the difference between the quality expectations of our customers and the quality they perceive Quality of service depends on this Once customers have found no difference between the quality they expect and the quality they perceive the quality of services that are considered perfect Besides fifth gap affected by the distance the previous four Therefore, to minimize the fifth gap or
company wants to enhance customer satisfaction, customer satisfaction,
organizations must find ways to shorten one to four
Trang 232 Meet: refers to the willingness, zeal, the desire of staff to meet the requirements
of customers
3 Capacity serving: speak qualifications, capability, craftsmanship and professionalism of the staff to perform services
4 Access: refers to the creation of favorable conditions, easy to clients in accessing services such as shortening the waiting time of customers, location of service and convenient opening hours for customers
J Courtesy: Related to serve affable personality, respect and customer friendly 6.Communication: refers to the ability to communicate, communicateinformation for customers 7 Credibility: involves creating customer trust, to make customers trust in the organization 8 Safety: said to ensure the safety of our customers when they use the services of the organization
9 Understanding the customer: demonstrate the ability of understanding of customers, interest, understanding their needs through the desire to learn, requires customers to service
10 Tangible Media: refers to the visible elements to make an impression with
customers such as uniforms, equipment, materials, facilities services,
Models ten service quality components mentioned above have the advantage almost every aspect of the service However, the negative is complicated to measure Moreover, this model is only theoretical, there may be many components of service quality models do not achieve that value assigned biet So, Parasuraman et al (1988) [II.10] was inspecting patterns on multiple times and offered five basic
components measure the quality of service is as follows:
1 Credibility: demonstrate the ability to perform appropriate service and on time 2 The assurance: in order to build customer trust through professionalism, politeness, respect for customers, the ability to communicate and caring attitude
Trang 243 Tangible Media: represents the appearance of physical facilities, equipment,
staff outfits, items and materials used for the communications
4 Empathy: refers to the style of service of employees through the care, attention
to customers, wholeheartedly understand the needs of customers and create a sense
of peace of mind, safety customer
5 The feedback: expressed willingness to help customers and quickly troubleshoot when there are errors or unexpected situations occur
Information from Personal needs The experience of
different sources the past ỶỲ »ị The expectations [4 > of services m 2 Ỷ The perceived £ 2 ( distance 4) - Supplier Information to Service delivery Customers A Distance 3 ` Conversion of the bank felt the quality criteria A Distance 2 | Ỷ Awareness of banks on customer expectations
Trang 252.5.2 Model of technical quality and quality of skills:
Service quality model of Grénroos was built in 1984 for the quality of service that is judged on two criteria: technical quality and quality functions
- Technical quality: customer service is received, it is the technical result of the supply process
- Quality function: the way in which customers receive the technical result of the supply process Service Services Perceived service quality comments expectations Technical Functional quality quality Form 2.2: Service quality model of Grồưnroos (Source Gronroos, 1984)
2.5.3 Quality of Service Model BSQ Bank (Bank Service Quality):
Trang 26From the above limitations, Bahia and Nantel (2000) [II.1] has successfully built BSQ model to assess perceived quality of services from retail banking customers This model is built on the basis of the ten components of the initial measurement model Parasuraman et al (1985) [II.9], in addition to models being added to the new factors represent the 7Ps part of the marketing mix such as product, price, location (place), communication (promotion), human (people),
processes and environmental services (physical) BSQ model after adjusting the
remaining 31 observed variables to measure six components related to the quality of
retail banking services, including:
1 Efficiency and ensure:
- Efficiency: the service can be provided efficiently to customers and the ability to make customers feel safe
- Guarantee: a demonstrated ability of bankers to address the requirements of customers through the communication skills and the ability of the bank security 2 Approach:
Relating to the creation of favorable conditions for clients in accessing
services such as shortening the waiting time of customers, location of service and
convenient opening hours for visitors groin 3 Price:
The price of the service is the subjective perception of the customer with the price of similar services by other vendors Price measurable cost provider
customers Due to the volatility of financial markets and cultural particularities of
the business, product pricing and customer interest is always compared, rated among banks
4, Tangible Media:
Expressed through appearance, attire of the staff and the equipment and
facilities to cater for customer service,
Trang 27Assess the scope, consistency and innovation of banking products to meet customer needs Effective And ensure Approach Price r Quality Retail Banking Tangible Product Categories Reliable
From 2.3: Model bank service quality BSQ (Source Bahia and Nantel, 2000)
2.6 Conclusion:
Trang 28CHAPTER HI: METHODOLOGY AND DATA COLLECTION METHOD
3.1 Introduction
Chapter three introduces the models of study and researches methods to test
the model selected Build quality research model of retail banking services in the
BIDV_North Saigon Branch
3.2 Quality retail banking services at the BIDV Saigon North Branch
3.2.1 Build quality research model of retail banking services:
Currently, there are many models to measure the quality of services However, author choose the pattern quality banking services to perform research BSQ In addition, this thesis based on the model Bahia and Nantel (2000) [IL-1] designed to measure On other hand, this model had proven measuring success in
Trang 29In this study could not assess the quality of service ageneral services such as high quality or low, but the quality of servicemust be measured by a set of scales to measure many concepts related components together and they together make up the
quality of service The quality of retail banking services is measured through the
satisfaction and perceived quality of customer service according BSQ model includes 6 components: effective and secure, access, price, tangible media and list of products and services, reliability
Some hypotheses posed for research model as follows:
- Hypothesis H1: composition ensures effective and customer reviews the more they feel their level of service quality of retail banking increasing and vice
versa
- Hypothesis H2: Composition reach more customers evaluate the their
perceived level of service quality and increasing retail banking service opposite - Hypothesis H3: Composition pricing feel valued by customers asmore then their perceived level of quality of service for more retail banking service rise and vice versa
- Hypothesis H4: composition means tangible customer reviews the more
they feel their level of service quality of retail banking increasing and vice versa - Hypothesis HS: Components product portfolio is customer service rated more then their perceived level of quality of retail banking servicerise and vice
versa
- Hypothesis H6: Composition trusted more customers evaluate the their perceived level of service quality and increasing retail banking service opposite
3.2.2 Build quality scale retail banking services BSQ:
This study used 7 point Likert scale, from small classified (1) to large (7), as proposed by the Bahia and Nantel (2000) [II.1]
3.2.2.1 Quality Scale Retail banking services:
BSQ scale is a scale quite complete and has been successfully applied
Trang 30world such as Greece, Bulgaria, Lybian However, every country has the
characteristics of economic, political, cultural differences, while research and development applied BSQ scale requires adjustments and supplements to match the
characteristics of the retail banking services at Vietnam’s bank in general and
particularly in BIDV-North Saigon branch
Scale overall service quality in the model BSQ at retail banking of 31 observed variables to measure the six components of quality of service In particular, (1) the effective and ensure part of 13 observed variables, (2) approach components 5 observed variables, (3) component prices 5 observed variables, (4)
components of tangible media including 4 observed variables, (5) component
product portfolio includes 2 services observed variables, ( 6) trusted components 2 observed variables (Appendix 1)
3.2.2.2 Scale satisfaction and perceived quality of retail banking
customers:
Additionly, this study uses as a basis BSQ scale to build scale for measuring quality of retail banking services Moreover, study also builds the scale of satisfaction and perceived quality of customer service based on research Lassar (2000) [II.7] to reflect the quality of banking services retail banking from service providers including 3 variables observed as follows:
1 In general, he / she completely satisfied with the quality of service due
retail banking service offer
2 He / she will be introduced to the body by using retail banking services for supply
3 In short, he / she will continue to use the services of retail banking next time
3.3 Design and Research Methods:
Trang 313.3.1 Preliminary study:
3.3.1.1 Technique plays, group discussions:
Preliminary studies were conducted through qualitative research methods including technical plays and group discussions Based BSQ scale (Appendix 1) for measuring the quality of services, through preliminary studies and technical plays to adjust time scale 1 (Appendix2) And then, it uses group discussion techniques, group 10 people with ages 25 to 45 who are knowledgeable about the banking sector and those who are using the services of retail banking at the bank BIDV, ACB through qualitative discussion outline (Appendix 3.1) The purpose of this
study to explore, adapt and complement the scale observed variables for BSQ star service quality to suit the retail banking market in Vietnam
The results showed that the group discussed a number of variables observed
by the customer need to remove it does not matter and they do not pay much
attention to these factors A total of 10 observed variables are removed
(Appendix2)
3.3.1.2 Scale adjustment:
From the results discussed in the model group, the scale BSQ after that adjustment variable remaining 28 observers (Appendix 3.2) In particular, (1) an effective and ensure observation of 8 variables, (2) access component includes 5 observed variables, (3) price includes 4 components observed variables, (4) components of tangible means includes 4 observed variables, (5) component product portfolio includes 3 variable service observed, (6) approach components including 2 observed variables Satisfaction scale consists of 3 variables remainis retained as the original
3.3.1.3 Designing the survey questionnaire:
After the group discussion, the questionnaire was designed as a two-part: - Part I of the questionnaire was designed to gather the customer reviewsline of quality retail banking services, customer satisfaction at BIDV BSG, ACB, other local banks in Ho Chi Minh City This section design includes 31
7 HUTECH LIBRARY
Trang 32observed variables, including the first 28 observed variables used to measure quality of retail banking services under the model BSQ and 3 other variables are used to
measure the satisfaction and perceived quality of customer service according to
research every Lassar et al (2000) [II.7]
- Part Il of the questionnaire is to classify information of respondents
issues such as age, education level, monthly income, gender.The questionnaire was
designed after the interview is finished is used to try 30 people to check the level of
clarity of the questionnaire and see the results right answer is information should be collected not After adjusting the questionnaire, the questionnaire form (Appendix 4) was sent to interview
3.3.2 Official study:
Research is done by informal research methods measure In other hand, quantitative research to test the scale of model research through survey questionnaires
3.3.2.1 Methods of collecting information and sample size:
Information and data are collected through surveys of individual customer suse retail banking services at BIDV-North Saigon branch, ACB and other local commercial banks in Ho Chi Minh City In addition, the reason why choosing ACB because of ACB survey is considered one of the commercial banks with market share leading retailers in Vietnam in curently, and the selection of ACB to have a basis for comparison compare service quality assessment of BIDV North Saigon branch By the way, direct interviewing technique is used primarily to collect data
And then, testing is selected by a convenient method According to Hair et al
(1998), to be able to factor analysis to explore the data collected with the sample size is at least 5 samples of 1 observed variables and sample size not less than 100
Model studies of observed variables is 31 If it bases on Standard 5:1 (five samples for an observed variable) and appropriate sample size survey to analyze and assess the quality of services at the two banks, the ACB, BIDV North Saigon
Trang 33sample size, 400 questionnaires were sent directly interviewing customers at ACB, BIDV locality BSG and Ho Chi Minh City
3.3.2.2 The plan data analysis:
First the scale of quality retail banking services will be encrypted appendix 5 The data will be collected after cleaning and treatment with SPSS to test the measurement model BSQ quality retail banking services
3.4 Conclusion:
Trang 34CHAPTER TV: RESULTS, FINDINGS AND PRESENTATION OF DATA
4.1 Introduction:
The results were positive when applied BSQ model on BIDV_BSG, and has changed in a positive direction Moreover, BIDV attracted a lot of customers in the
retail business in terms of reliability, service satisfaction, customer care In
particular, bank attracted huge idle fund investments to banks BIDV_BSG The goal is always to become the best bank which are customer confidence Therefore, bank always has improve strategy BSQ model applied in the bank Next stepshows the results of the studies at BIDV_BSG BSQ model based on the data were analyzed and recorded during deployment
4.2 Sample testing:
Survey results have collected 367 valid questionnaires and standards to make
database for the study Table 2.1 shows statistical respondents mainly concentrated
in two banks BIDV and ACB large Form is convenient sample survey respondents
directly to customers who use retail banking services in BIDV BSG, ACB and banks other Results rate of BIDV sample allocation accounted for 46.1%, accounting for 44.1% remaining ACB 9.8% was from other commercial banks The data collection is done according to the following 4 criteria:
- By age: the sample rate is 47.7% for the highest sample aged 21-30, followed by 30.8% for the sample aged 31-40; 16.3% for the sample aged 41-50; 4.1% for samples over 50 years and the lowest rate of 1.1% for those younger than 20 years old Survey results show that customer group for children aged 21- 40 accounted for a high rate of 78.5%
Trang 351.9% Survey results show that customer group qualified college / university graduate and a high proportion of 83.3%
- The income (million / month): sample with the highest rate is 42% for
income from samples 5-10 million, followed by 28.1% for income form 10 - 15
million, 21.0% for samples with incomes above 15 million and the lowest rate is 9.0% for samples with less than 5 million incomes
- By gender: survey results show that the proportion of surveyed sex relatively equal with 51% male and 49% female
Table 2.1: Samples distributed according to respondents
Proportion! Rate% | Rate% Criteria Classify Frequency % valid | cumulative BIDV 169 46,1 46,0 46,0 ACB 162 44,1 44,1 90,2 Bank Other 36 9,8 9,8 100 Total 367 100 100 Under 20 years old 4 1,1 1,1 1,1 From 21 to 30 175 47,7 47,7 48,8 Age From 31 to 40 113 30,8 30,8 79,6 From 41 to 50 60 16,3 16,3 95,9 Over 50 years old 15 4,1 4,1 100 Total 367 100 100 Under high school 7 1,9 1,9 1,9 High school 54 14,7 14,7 16,6 Academic - College / University 278 75,7 75,7 92,4 level Over university 28 7,6 7,6 | 100 Total 367 100 100 Under 5 million 33 *9,0 9,0 9,0
Trang 364.3 Rating scales with Cronbach's coefficient alpha reliability:
This method allows the analysis of variables eliminates inconsistent,
limiting dummy variables in the research process and evaluate the reliability of the
scale Cronbach's coefficient through Alpha By the way, Scale Cronbach's alpha coefficient of 0.6 or up that can be used in the case studies are new concepts
4.3.1 Result analysis quality scale retail banking services modeled BSQ:
The analytical results in Table 2.2 found all 28 variables measuring quality retail banking services under the model BSQ have a correlation coefficient of total variation (Corrected Item-Total Correlation) are greater than 0.3 should be accepted In addition, Cronbach's alpha coefficient of the materials measurement
(efficiency and guaranteed; approach; price; Tangible Media; portfolio of products
and services; credit reliability) are greater than 0.7 indicates that this is a good scale Thus, all 28 variables measuring 6 observed quality of service components in the model BSQ are used for factor analysis next EFA
Table 2.2: Cronbach's alpha coefficient scale components of quality retail banking services Variance Cronbach's Observed |Medium scale if Correlated
scales if Alpha if this variables the variable type variables total
variable types variable type
Trang 37A 4 19,77 7,912 0,605 0,770 A 5 19,23 8,306 0,527 0,794 Components Price (P): Cronbach's Alpha = 0,740 Pl 13,84 5,122 0,578 0,661 P2 14,02 4,770 0,558 0,667 P 3 14,19 4,987 0,492 0,705 P.4 14,04 4,728 0,516 0,693 Components Tangible Media (TM): Cronbach's Alpha = 0,754 TM 1 14,80 3,859 0,625 0,658 ™ 2 15,07 3,843 0,585 0,678 TM 3 15,09 4,025 0,429 0,770 TM_4 14,79 3,919 0,583 0,680 Components Product and Service portfolio (PAS): Cronbach's Alpha = 0,792 PAS 1 9,51 2,300 0,596 0,755 PAS 2 9,58 2,070 0,669 0,677 PAS 3 9,58 2,195 0,635 0,715 Components Reliable (R): Cronbach's Alpha = 0,844 R1 15,40 4,700 0,624 0,825 R 2 15,40 3,994 0,692 0,797 R 3 15,43 - 4,059 0,695 0,794 R 4 15,21 4,165 0,712 0,787
(Source Results analysis SPSS)
4.3.2 Analytical results satisfaction scale and perceived qualityRetail banking customers:
Trang 38Table 2.3: Cronbach's alpha coefficient components satisfaction scale
Observed |Medium scaleif, Variance Correlated |Cronbach's Alpha
variables | the variable scalesif | variables total lif this variable type Components Satisfaction (S): Cronbach's Alpha = 0,778 S1 10,17 1,877 0,613 0,704 S 2 10,28 1,935 0,550 0,770 S 3 10,04 1,665 0,687 0,617
(Source Results analysis SPSS)
4.4 The rating scale using factor analysis to discover EFA, adjust the
research model was first time:
After checking the reliability by Cronbach's alpha coefficient, factor analysis explore EFA (Exploratory Factor Analysis) to be undertaken to minimize and summary turn off the data, evaluate the degree of convergence of the observed variables by citiespart Extraction method is the author selected for factor analysis method Principal Components with Varimax rotation
4.4.1 Quality scale retail banking services based on the model BSQ:
> Analytical results EFA Ist:
According to the results in Appendix 6.1, KMO and Bartlett's test KMO coefficient by 0.931> 0.5 with a significance level equal to 0 (sig = 0.000) showed EFA factor analysis suitable
Trang 39research models and suitable for measuring the actual assessment, so this variable is retained Thus, after the variable type variable A_4 remaining 20 observers continue to be analyzed EFA 2nd
» Analytical results EFA 2nd:
According to the results in Appendix 6.2, KMO and Bartlett's test KMO
coefficient by 0.930 > 0.5 with a significance level equal to 0 (sig = 0.000) showed
EFA factor analysis suitable At the 1,032 level by extracting eigenvalues are 5 factors to the 64.206% deduction is wrong (greater than 50%) unsatisfactory According to the results table Rotated Component Matrixa then all variables are satisfactory weight (greater than 0.5) should be used as a service quality scale Analytical results EFA 2 extracted the remaining 5 components measurement
quality evaluation retail banking servicestotal variance extracted explain the
variability of the data is 64.206% and the coefficient of Cronbach's Alpha 2nd components greater than 0.6 are satisfactory
Table 2.4: Results analysis EFA and analysis Cronbach’s Apha scale components of quality retail banking services Element PAS R EAE P A Eigenvalues 8,363 1,260 1,123 1,063 1,032 Variance extracted (%) | 41,817% 6,300% |5,614% 5,314% 3,162% Cronbach’s Alpha 2 0,845 0,833 0,814 0,693 0,660
(Source Appendix 6.2 and Appendix 7)
Thus, six quality measurement component of retail banking services under the model after analyzing EFA BSQ was extracted remaining 5 components as follows:
- Composition and tangible means of product and service portfolio consists of six variables: Tangible Media _1, Tangible Media _2, Tangible Media 4,
Trang 40- Composition 4 variable trust: R_2, R_3, R_4, EAE_7.- Ensure effective composition includes 5 variables: EAE 1, EAE_2, EAE 3, EAE 4, EAE 5
- Composition price includes 3 variables: P_i, P_2, P_3.- Composition access includes 2 variables: A_1, A_5
4.4.2 Adjust the research model was first time:
EFA analysis above, the two components of tangible media and product catalog service model BSQ components grouped into one because they do not reach the value discrimination Therefore, theoretical models were adjusted accordingly evaluate the quality of retail banking services and to perform the next test Effective and | ,,, ensure Approach = Satisfaction Price = Vehicle H4 Tangible product and service catalog Reliable |“
From 4.1: Adjusted model 1st assess the quality of retail banking services
Several theories when conducting research models adjusted as follows: - The hypothesis H1, H2, H3 and H6 is kept as original