Improving customer service in military commercial join stock bank – hoang quoc viet branch

Name : Nguyễn Chúc Quỳnh CQ50/51.04 Topic: “Improving customer service in Military commercial join stock bank – Hoang Quoc Viet Branch.CHAPTER 1: LITERATURE REVIEW This chapter related

Name : Nguyễn Chúc Quỳnh CQ50/51.04 Topic: “Improving customer service in Military commercial join stock bank – Hoang Quoc Viet Branch.

CHAPTER 1: LITERATURE REVIEW

This chapter related a review of literature related to the research work asdocumented by authorities on customer service

It will cover the definitions of customer service, the definitions of customerservice quality, definitions of customer satisfaction, definitions of customerloyalty It will also take a look into the SERVQUAL MODEL to assessservice quality dimension, customer service quality and some factorsaffecting customer service in banking sector

1.1 Customer service

1.1.1 Definition of customer service

According to Wikipedia “Customer service is the provision

of service to customers before, during and after a purchase Accordingly, itmay vary by product, service, industry and individual customer Theperception of success of such interactions is dependent on employees "whocan adjust themselves to the personality of the guest"

According to Paul Mckinney (2015), Customer service is the act of takingcare of the customer's needs by providing and delivering professional, helpful,high quality service and assistance before, during, and after the customer'srequirements are met

Christine Johnson (2006, p.102) said that good customer service meansproviding product and service which has high quality, answering queries,making customer easy to purchase goods and delivering on time

According to consultant Sudhir Andrews (2007, p.198), customer service notonly satisfies a customer but also reflects the professionalism of theorganization as the result of building its image He believed that goodcustomer service can build trust and customer loyalty Employees can also getrewards and develop the friendship with customers if they provide goodservices.

In general, Customer service relates to the service provided to customers before, during and after a purchase

Some characteristics of good customer service include:

Promptness: Promises for delivery of products must be on time Delays and

cancellations of products should be avoided

Politeness: Politeness is almost a lost art For any business, using good

manners is appropriate whether the customer makes a purchase or not

Professionalism: All customers should be treated professionally, which

means the use of competence or skill expected of the professional.Professionalism shows the customer they're cared for

Personalization: Using the customer's name is very effective in producing

loyalty Customers like the idea that whom they do business with knows them

on a personal level

1.1.2 Definition of customer service quality

According Parasuraman, Zeithaml and Berry (1985), the quality of service isthe customer's perception of service has generated a good level of customers’previous expectations Also according to Parasuraman, the expectation inservice quality is the desire of the customer, which means they feel the rightprovider will perform and not perform the service requested

Bitner and Hubert (1994) stated that the perception of service quality canoccur at multiple levels in an organization Research by Caruna (2000)

revealed that service quality is an important input to customer satisfaction,therefore the main point of management attention should be on customers, ofwhich service quality is an important antecedent.

Customers receive products through active communication, information andcomments received To evaluate customer service quality at banks, customersmust come and perform transactions, assess the facilities, the service attitude ofstaff, level of satisfaction of products and services, etc

1.1.3 Customer loyalty

Customer loyalty (Customer loyalty, 2002) is both an attitudinal andbehavioral tendency to favor one brand over all others, whether due tosatisfaction with the product or service, its convenience or performance, orsimply familiarity and comfort with the brand Customer loyalty encouragesconsumers to shop more consistently, spend a greater share of wallet, and feelpositive about a shopping experience, helping attract consumers to familiarbrands in the face of a competitive environment Journal Citation CiationReport (Thomson Reuters, 2014) Customer loyalty is viewed as the strength

of the relationship between an individual's relative attitude and repeatpatronage The relationship is seen as mediated by social norms andsituational factors Cognitive, affective, and conative antecedents of relativeattitude are identified as contributing to loyalty, along with motivational,perceptual, and behavioral consequences Albert Canuana,2002 stated thatservice loyalty, with its final effect on repurchasing by customers, appears tohave received relatively little attention This study starts by first delineatingthe concept of service loyalty and proceeds to distinguish between servicequality and customer satisfaction A model that links service quality to serviceloyalty via customer satisfaction is proposed Appropriate measures areidentified and a postal survey is undertaken among 1,000 retail banking

customers A response rate of 20.5 per cent is obtained Results indicate thatcustomer satisfaction does play a mediating role in the effect of servicequality on service loyalty.

In general, it is agreed that customer satisfaction measurement is a consumption assessment by the user, about the products or services gained(Churchill and Surprenant, 1982; Yuksel and Rimmington, 1988)

post-1.1.4 Customer satisfaction

Many researchers have definitions customer satisfaction According toCambridge Dictionary Customer satisfaction is a measure of how happy customers feel when they do business with a company Journal of Marketing(January 1982) is defined customer satisfaction has a direct impact on theprimary source of future revenue streams for most companies Satisfaction is

as a judgment following a consumption experience - it is the consumer’sjudgment that a product provided (or is providing) a pleasurable level ofconsumption-related fulfillment ( Oliver Richard L 1997)

Most research confirms that the confirmation or disconfirmation of consumption expectations is the essential determinant of satisfaction Thismeans that customers have a certain predicted product performance in mindprior to consumption

pre-During consumption, customers experience the product performance andcompare it to their expected product performance level Satisfactionjudgments are then formed based on this comparison The resulting judgment

is labeled positive disconfirmation if the performance is better than expected,negative disconfirmation if it is worse than expected, and simple confirmation

if it is as expected In short, customers evaluate product performance bycomparing what they expected with what they believe they received Theperformance implications of the customer satisfaction instrument are also

explored What is shown is that customer segments, in fact, yield statisticallydifferent satisfaction scores, which verifies the managerial value of customersegmentation practices Finally, the facets of customer satisfaction asexplanatory cues for the switching behavior of individual and businesscustomers were tested successfully.

1.1.5 Factors affecting customer service in banks

1.1.5.1 External factors

The bank is operating in conditions which often change due to a lot of diverserelations between it and the various economic actors All relationshipsconstitute operating environment and business of commercial banks To beable to develop rapid and sustainable services, commercial banks need toresearch about the operating environment affecting our business.Environmental activities include: economic environment, legal environment;social and cultural environment and technological environment

1.1.5.1.1 Economic environment

Any business organizations are affected by the economic environment

on their business activities In particular, commercial banks are subject having

an intimate relationship with most of the other economic sectors Therefore,when the economic environment changes in any direction, the operations ofcommercial banks are also affected strongly For individual customers,income is the main factor, the most important factor impacting on their use offinancial and banking services During the developing economies, per capitalincome increases, the demand for people with the products and services ofbanks will increase, which will boost the commercial bank of constantly openwide business operations, improve service quality and product, diversify newservices to increase market share and satisfy every customer's needs Incontrast, the economy falls into instability, difficulty will make the

unemployment rate rose, consumption declined, people's incomes go down,the things that impact directly on the banks as the amount of deposited money

in banks will decline, lending individual customers become more difficult andrisky, etc

1.1.5.1.2 Social and cultural environment

Customary practices, conception of life, the social and cultural factors, etc.have decided to influence preferences and consumption habits of bank serviceindividual customers Although Vietnam's population is relatively large, thenumber of participants in banking transactions is very low, and the majority

of people still have the habit of using cash for payments To be able to changeconsumption habits of people, banks should take measures to propagate andadvertise the utilities from using banking services, help people feel secure andconfident when using services

Besides that, some factors of population such as population density, averageage, education level, income, etc in each region also affect the development

of banking services in the area

The study of the socio-cultural factors not only determine their impact on thebehavior using banking products and services of customers, but also help thebank managers active in participate in formulating policies, regulations andprocedures in the design business and organizational models consistent withthe cultural characteristics of each region and market sector both domesticallyand internationally

Therefore, banks need to delve on the above factors, from which subgroups ofcustomers, to be able to provide appropriate services to more customers, helpdevelop better banking services

1.1.5.1.3 Technological environment

The rapid development of science and technology also has strong impact tothe commercial banks Based on the application of information technologysoftware advanced, high-speed processes has helped the administration ofcommercial banking effectively; offer new better services which meet customerneeds Thus, the commercial banks have to capture the change of environmenttechnology to applications of scientific and technical achievements in service tosatisfy customers’ demand.

In fact, the changes in information technology have a strong impact to thebanking business New technology allows banks to not only processinnovation professionally, but also renew the distribution method, developnew products and services such as the development of computer networks thatallows bank network to provide 24/24 banking services Changes intechnology has a strong impact to the complex production of the industry, andalso has an influence on how the use of banking products and services to thepopulation This has created new demands on products and banking servicesbanking activities as the birth and development of electronic commerce hasput forward new requirements for the banking sector in the provision ofpayment services, etc

1.1.5.2 Internal factors

Subjective factors are factors affecting the banking of the development ofbanking services These factors are crucial to the operation of commercialbanks as well as the development of services for individual customers Thesubjective factors include: the development point services for individualcustomers, the bank's marketing activities, financial strength and reputation ofthe bank, technological capacity and qualification of personnel banker, etc

1.1.5.2.1 Attitude on service development for individual customers

Any business that wants to develop fast and sustainably needs to build adevelopment strategy from which long-term direction of action, creatingfundamental basis for policy and business decisions Development strategy ofbanking services should be developed on the basis of the survey, the businessclimate survey and customers, and it is important to rely on bank resources.When there is a well-developed strategy, it will help banks to improve theactiveness, ability to grasp the opportunity and flexibility in the responses tothese challenges may occur, which may change methods and ways ofmanagement when needed.

Moreover, the needs of individual customers are always very complex anduneven, so each bank should have a policy or service development standpointfor specific individual customer To be able to develop services for individualcustomers in the best way, the strategy of each bank should specify that thebank needs to focus on groups of individual customers, the market segment ispromising and consistent performance

1.1.5.2.2 Education and skills

In business, the human factor is always key, critical to the success or failure

of a business In the banking sector, professional competence, communicationskills, professional ethics of banking staff directly impact the quality ofstrategies, action plans To improve service quality, besides the support ofelements of technology and finance, banks must continually fosterprofessional qualifications and soft skills for staff Service quality dependslargely on the expertise, attitude, experiences, sense of responsibility andspirit of cooperation among all members and parts of the bank And mentalcapacity of the bank staff, the personnel policy values setting out in each bankhave a profound impact on the formation of a comprehensive service qualityproduce, etc customers will feel more satisfied and confident when dealing

with employees who have professional qualifications stable, agile style, open,polite, respectful to customers.

Besides that, banks should have leadership team who have qualified andcapable of good governance in order to give proper orientation for thedevelopment of banking in general and the development of banking servicesparticularly

1.1.5.2.3 Facilities, scale and reputation of the bank

The size of the bank is one of the crucial factors to the operation of the bankand the customer service deployed at each bank Facilities include buildings,ATM network, computers, operating procedures, etc have a direct impact tothe banking service Good facilities facilitate customer service moreconvenient

A large-scale system with branches and transaction offices throughout willserve customers quickly and more efficiently Through it, the prestige, theimage of the bank is market recognition and greater visibility Moreover, tomaintain loyal customers and attract potential customers, banks areincreasingly reputable consolidation efforts, its brand on the market,establishing customer trust And above all, to satisfy our customers in the bestway, the banks must constantly invest infrastructure and expand the scale ofdevelopment

1.1.5.2.4 Banking technology

Nowadays, technology is playing a leading role in important, fundamentalfactor for commercial banks to increase productivity, quality andperformance Development and application of new modern technologiesallow banks to create perfect services that meet expectations of customers.The system of modern information technology will be a solid basis forfunding to help develop new services having distinct characteristics and

unique, providing customers with service quickly and accurately with safetyhigher by reducing manual intervention Also, the application of moderntechnology also allows banks to improve business operational process logically,improve bank management, particularly risk management capabilities Althoughinvestments in technology systems require major cost but after going into use,these technologies will help banks improve their competitiveness by developingservices and reducing costs in operations of business.

Technology development also creates conditions for the deployment anddevelopment of new services for individual customers such as moneytransfers automatically, the online payment services, card services, Internet-banking, mobile-banking and use automated trading kiosks with many utilities,etc The new service brings many benefits to customers, giving satisfaction tocustomers, to help customers use the number increased service, thereby bringingmore income to the bank

To exploit the advantages of modern technology, the bank should have highlyqualified staff which able to master the technology to support customers withthe fastest, most professional

Applying modern technologies in banking helps banks deploy multipleservices, reducing transaction time, transaction costs, etc to increasingly meetand satisfy best the increasingly diverse needs of the market

1.1.5.2.5 The level of organization and management of the bank

Based on quality management system theoretical perspective, a bank is asystem in which there is a unified coordination between functional units Thelevel of quality achieved on the basis of cost reduction depends largely on thelevel of organization and management of each business Quality ofmanagement operations reflects the quality of bank operations coordination,between the rational exploitation of existing resources to make our products

depends on the awareness, understanding and management of quality, level ofconstruction and direct program implementation, policy, quality objectives ofthe planned corporate management department.

At each bank, quality of service is often different in the branch, at every point

in the supply or banking leaders There are leaders only interested in sales,amounts disbursed, interest earned and the deposits mobilized withoutattention to customer service quality So build a system, goals and measuresdesigned to improve customer satisfaction

1.2 Model to analyze customer services quality

Cronin & Taylor (1992) proposed SERVPEF model They insisted on thatservice quality is determined by performance only The authors investigated theconceptualization and measurement of service quality and the relationshipamong service quality, consumer satisfaction, and purchase intentions Theysuggested the current operationalization of service quality confoundssatisfaction and attitude Hence, they tested an alternative method ofoperationalizing perceived service quality and the significance of therelationships among service quality, consumer satisfaction, and purchaseintentions They suggested that the performance-based measure of servicequality may be an improved means of measuring the service quality construct,and service quality is an antecedent of consumer satisfaction Consumersatisfaction has a significant effect on purchase intentions, and service qualityhas less effect on purchase intentions than consumer satisfaction does

SERVPERF Cronin and Taylor (1992) in their empirical work controvertedthe framework of Parasuraman, Zeithaml and Berry (1985, 1988) with respect

to conceptualization and measurement of service quality, and propounded aperformance-based measure of service quality called ‘SERVPERF’illustrating that service quality is a form of consumer attitude They argued

that SERVPERF was an enhanced means of measuring the service qualityconstruct In equation form, SERVPERF service quality can be expressed as:

Services quality = Perception

Therefore, the quality of services related to customers' expectations and theirperception of the service Build a system that's expected to be the customer isrequired to improve customer service quality in every business Businesscustomer service to inform all employees of the bank and the authority,responsibility, specific to each department staff, especially staff dealingdirectly with customers The bank has no mechanism for attaching the rightsand responsibilities of employees in dealing with the customer, especially thepolicy effective encouragement for staff satisfaction with the service attitude

is good and attract more customers to the bank

Strengthening infrastructure, modern technology makes customer serviceproduct and service quality is improved, perform timely customer service,quick and accurate This also makes the reputation, image, symbol of the bankincreased

Strengthen incentives for good customer relations, frequent, prolongedcontact with the bank by transferring money fee waivers, issuing a check,letter of credit to maintain and banking customers pay attention, entice newcustomers classification and preferential policies, stimulate them as providingcustomers with a variety of products with high quality service, courteousservice attitude, dedicated, understanding, empathy, creating mutualconfidence, harmonious interests of both the bank and the customer

In 1992, from the results of their experimental research, Crolin & Taylorproposed SERVPERF Model and believed that this model is better thanSERVQUAL Model In addition, Quester & Romaniuk (1997) also conducted

the comparison between these 2 models in the Australian advertising industryand concluded that SERVPERF Model is better than SERVQUAL Model.SERVPERF Model is used to measure the customers’ perception (instead ofmeasuring both perceived and expected quality like SERVQUAL Model),then identify the services quality and omit the measurement of customers’expectation.

Cronin and Taylor (1992) in their empirical work controverted the framework

of Parasuraman, Zeithaml and Berry (1985, 1988) with respect toconceptualization and measurement of service quality, and propounded aperformance-based measure of service quality called ‘SERVPERF’ illustratedthat service quality is a form of consumer attitude They argued thatSERVPERF was an enhanced means of measuring the service qualityconstruct

According to service quality definition was conceptualized by Parasuraman,Zeithaml and Berry (1988), and examined by Cronin and Taylor (1992),service quality was based on 5 dimensions: Reliability, Responsiveness,Assurance, Empathy, and Tangible

Reliability

Responsiveness

Assurance

Tangibles Empathy

Service quality

Finger 1.1: SERVPERF model

(Source: service quality definition was conceptualized by Parasuraman, Zeithaml and Berry (1988), and examined by Cronin and Taylor (1992))

In the research of Le Thi Hai Nhu (2013), “Improving customer service quality for individual customers at bank for investment and development of Vietnam – Western Hanoi Branch” showed that staff‘s quality and transaction

time are also very important to evaluate customer service quality

From the researching model of Cronin and Taylor (1992) and Le Thi Hai Nhu(2013), measuring the customer service quality is based on evaluations onreliability, responsiveness, assurance, empathy, tangible, staff and transactiontime So, the author used the researching model for this thesis as bellow:

Finger 1.2: Theoretical researching model

(Source: SQ as conceptualized by Parasuraman, Zeithaml, and Berry (1988) and examined by Cronin and Taylor(1992), Le Thi Hai Nhu (2013))

Customer Service quality

Transaction time

StaffTangibles

Empathy Assurance

Responsiveness

Reliability

1.2.1 Responsiveness

Responsiveness is the staffs’ readiness and guarantee that the service isperformed quickly It reflects the trustworthiness of the company to keep itspromise of providing its services and the self-consciousness of the staff tohave the proper manner of serving Making customers wait without anappropriate reason will create the negative impacts on customers’ evaluation

of services quality

Always informing customers when they will be served

Providing services quickly

Willing to serve customers

Willing to meet customers’ demands

1.2.2 Empathy

This is showing the special caring to each customer The company putsthemselves in customer’s position so that they can understand customers’demands and provide them of necessary services The services that cannotmake customers feel comfortable and convenient are unsuccessful inempathizing with customers

Staffs pay attention to each customer

Staffs attentively care each individual customer

Staffs clearly understand customers’ demands

Staffs put customers’ benefits priority

Arrange the suitable meeting time for customers

1.2.3 Tangible

Service is intangible; thus, to some extents, customers will base on tangibles

to evaluate services quality Tangibles here mean facilities, equipment,documents and especially staffs’ image which creates the strongestimpression to customers

Modern equipment

Eye-catching facilities

Professional and elegant style of staffs’ appearance

Clearly arranged documents and spreadsheet

1.2.4 Staff

Employee research is as important to service improvement as customerresearch, for three reasons First, employees are themselves customers ofinternal service, and thus are the only people who can assess internal servicequality Because internal service quality affects external service quality,measuring internal service quality is essential Second, employees can offerinsight into conditions that reduce service quality in the organization

Employees experience the company's service delivery system day after day.They see more than customers see and they see it from a different angle

Employee research helps reveal why service problems occur, and whatcompanies might do to solve these problems Third, employee research serves

as an early-warning system Because of employees' more intensive exposure tothe service delivery system, they often see the system breaking down beforecustomers do

1.2.5 Transaction time

As we all know that transaction time is very important in customer service.Staffs strive to provide fast and easy resolution because they think about theircustomers’ valued time

In customer service, transaction time reflects service quality If you have goodproducts/service but you miss/late in transaction time that means your servicequality is not good Especially, in customer service, staffs have to ensureimplementation time as committed with customers

CHAPTER 2: CUSTOMER SERVICE FOR INDIVIDUAL CLIENDTS

IN MB HOANG QUOC VIET BRANCH

2.1 Introduction of Military commercial join stock bank

2.1.1 History and development of Military Commercial Joint Stock Bank

Established in 1994, through 22 years of operation, the Military Bank hascontinuously done the business effectively and been assessed by the State Bank

of Vietnam as one of the leading commercial joint stock banks of Vietnam.Military Bank was established in accordance with the Business license no 0054/NH-GP of the governor of the state Bank of Vietnam granted on 14th September,

1994 and decision no 00374/GP-UB by the Hanoi people’s committee Theoperational duration under the license is 50 years and the Bank operatedofficially on 4th November 1994.the Bank has been established to providebanking services including receiving short, medium and long-term depositsfrom organizations and individuals; making short, medium and long-term loansand advances to organizations and individuals based on the nature and capability

of the Bank’s sources of capital; also including foreign exchange transactions,international trade financial services, discount of commercial papers, bonds andother valuable papers, and providing other banking services allowed by thestate Bank of Vietnam

The Military Bank serves diversified customers including enterprises andindividuals of all economic sectors, among them there are state-owned, privateenterprises, enterprises with foreign capital and individuals With the motto ofsafe and efficient operation, the bank always attaches the customer's interest tothat of the Bank, over the past years the Military Bank has been always thetrusted companion of customer and its prestige is increasingly strengthened anddeveloped

The growth in capital and the scope of business of the Bank has been alwaysstable and continuous through its 10 year of operation Its charter capital has

continuously increased from VND 20 billion in 1994 to 7,300 billion by the end

of 2010 MB maintained its stable development in two years of 2008 and 2009and affirmed its reliable and trustworthy name The equity capital reached Vnd5,300 billion, total assets were Vnd 69,008 billion, total mobilized capital wasVnd 59,279 billion while the loan balance rose to Vnd 29,588 billion profit

of the bank reached Vnd 1,505 billion, far exceeding the plan of Vnd 1,000billion and increasing by 75% as compared with that of the previous year So,after two years of struggling with the challenges of the financial crisis, MB haddelivered a growth in all operation respects at the rate of 200% as comparedwith those of 2007

The head office of Military commercial joint stock Bank is located at no 21 CatLinh Street, Ba Dinh district, Hanoi, Vietnam As at 31 December 2015, theBank has one head office, one operation center, 35 branches, 66 transactionoffices located in cities and provinces all over Vietnam, five subsidiaries andthree associates

3.1.2 Introduction of MB Hoang Quoc Viet Branch

On 08/08/2007, with the decision to expand in Hanoi, MB Bank opened anotherbranch in the area at Hoang Quoc Viet street to expand the network, themanagement has decided to establish MB Hoang Quoc Viet branch Hoang QuocViet Branch was established with the main activities of mobilizing deposits,providing credit, providing banking products and services for the individualobjects in the area and in the region

Initially, MB Hoang Quoc Viet Branch had 25 staff members Until now, MBHoang Quoc Viet Branch has the number of employees of 92 people with 2affiliated transaction offices under the branch:

- Transaction office of Tu Liem : No.155, Pham Van Dong Str, Bac Tu LiemDist, Ha Noi

- Transaction office of Nam Thang Long: No 68, Ho Tung Mau, Nam Tu LiemDistrict, Ha Noi

2.1.3 Products and services

Military bank offers a complete range of products and services for personalbanking, corporate banking, and financial institution as the following

(source: http://www.militarybank.com.vn/home.asp )

Saving Personal accounting Valuable papers Personal lending

MB card Money transfer Personal foreign exchange products Other services

Personal

banking

Account service Corporate lending Foreign exchange Guarantee services Trade finance services Domestic payment Valued paper products Other services

Corporate

banking

Correspondent bank Financial market Trade finance

Financial

institutions

Internet banking Mobile banking Home banking Contact center Billing paymentE-banking

2.1.4 Business performance of MB Hoang Quoc Viet Branch

* Results achieved

In recent years, with business orientation and strategic vision of the leadershipteam and the effort of all staff, Hoang Quoc Viet Branch of Military commercialjoin stock Bank has achieved success in many areas Business performance indetail, on the mobilization of capital and credit activities of Hoang Quoc VietBranch of MB through the 2012, 2013, 2014 respectively are shown in Table 2.1below

Table 2.1: Criteria of retail banking for individual customers of MB Hoang Quoc Viet branch over 3 years (from 2012 to 2014)

Target Unit 2012Results 2013Results +/- (%) 2014Results +/- (%)

Capital mobilization Billion

dongs 2026 2755,41 +36 3081,42 +11,83

dongs 603,75 899,58 +49% 1071,42 +19,1Term deposits Billion

dongs 1422,25 1855,83 +30,48 2010 +8,31Credit activities Billion

dongs 16,08 22,48 +39,78 33,97 +51,17Other activities Billion

dongs 8,36 11,50 +37,56 16,68 +45,04Number of individual

Number of issued cards Card

(Source: Annual Report 2012-2014 of Military commercial join stock Bank)

After 9 years of operation, MB Hoang Quoc Viet Branch has confirmed a newposition with strong growth aspirations, more stable operation by the media, branding

continuity which is deployed, and many human activities for religion, charity, etc.,which has established a good image in the public mind and customer mind.

2.2 Dimensions and attributes to measure customer service in MB Hoang Quoc Viet branch

According to Parasuraman (1988), 5 basic variables will be measured indirectly

by measuring 22 factors needed (items) to evaluate the service quality and theservice for individual customer is also a general service so it will be measured infive dimensions based on SERVPERF model However, based on theoreticalresearch model, comments of experts and result of interviewing the bank’sleader, the author adjusted attributes in each dimension to make it easier forsurvey customer 5 Dimensions includes 38 observation variables to measurecustomer service quality at MB Hoang Quoc Viet branch This is shown clearlyunder the following table:

Table 2.2: The assessment attributes of customer service quality at banks

No Dimensions Attributes

1 Dealing with works accurately and quickly

2 Employees consult customers on a careful basis anddeal with customer complaints reasonable

3 Programs on promotion and customer care after sales

of the bank are reliable

4 Employees are open, reliable and enthusiastic withcustomers

3 Responsiven 1 Professional support

( 5 attributes)

2 Always timely responding to customer requirements

3 Timely providing customers with useful information

4 Waiting time is not too long

5 Simple, easy-to-understand, and quick procedures

4 Staff

(11

attributes)

1 Staff is open, honest and enthusiastic with customers

2 Staff is beautiful, polite and elegant

3 Staff has active and professional service style

4 Staff has much experience and good expertise

5 Staff has good communication skills, is alwaysfriendly and enthusiastic

6 Staff always timely provides customers with usefulinformation

7 Staff consults customers carefully

8 Staff deals with operations carefully, accurately andquickly

9 Staff always cares about customer benefits

10 Staff always quickly and timely meets customerdemands

11 Staff reasonably deals with customer complaints

5 Transaction

time

( 5 attributes)

1 Transaction time can be evaluated exactly by staff

2 Time for each operation of transaction is quick andaccurate

3 Procedures are simple, quick and easy to understand

4 Time for transaction is quick

5 Implementation time is as committed with customers

(Source: Author’s summary)

Factors are evaluated on covering the entire process related to the serviceprovider There are factors presenting qualifications of bank employees, there arefactors that depend on the skills, attitude of service and courtesy of serviceproviders, but also there are many extraneous factors directly providing serviceslike the layout of transaction points, banking technology used, the process ofdelivering the product and the product itself, etc It’s the fact that the quality of

banking services each depends on many stages, involving many people in thedifferent job positions All these factors are not beyond general purpose best tomeet the needs and expectations of customers.

2.3 Current customer service in MB Hoang Quoc Viet Branch

2.3.1 Customer’s evaluation on tangible dimension

In January 2016, the author conducted a survey for customers going to the bankfor making transactions The purpose of the survey is to understand thecustomer's assessment of service quality of MB, there by to enhance servicequality, maintaining old customers and attract potential customers

Table 2.3: Customer’s evaluation on tangible

1 MB has a modern system of office

equipment and technology to support

customers

2 Employee’s appearance is police,

3 MB has a system of ATMs which

is flexible, modern and ease of use 2 6 52 40 3.30

4 Military commercial join stock

bank’s website is full of information,

attractive and highlighted leaflets

5 MB’s products and services are

(Source: Survey by author, 2016)

Military commercial join stock bank has made important adjustments ondevelopment focused business strategy, establish specialized business model ofbanks according to international standards This is a move vigorously contributed

to MB image is well known as today The survey of 200 customers are currentlytrading in MB Hoang Quoc Viet Branch facilities, the author obtained the followingresults:

The attributes "Employee’s appearance is police, elegant and professional" and

"MB has a modern system of office equipment and technology to supportcustomers" is at the quite high average agree level of 3.61 and 3.56 averagepoint This is the main purpose of MB to constructing image in customer’s mindwith model technology and friendly transaction environment

The attribute on tangible elements " Military commercial join stock bank‘sproducts and services are various, abundant and reasonable" with the averageagree level of 3.40 Compare with other bank, maybe MB’s banking service andproducts are still limited But product development department is still ongoingeffort to develop and improve our products to meet customer expectations

With the assessment "MB has a system of ATMs which is flexible, modern andease of use”, The survey results obtained was evaluate at 3.30 average point.This proves that there is still a small number of customers are not really satisfiedwith the ATM system of MB Hoang Quoc Viet Branch

Nevertheless, the attribute “MB’s website is full of information, attractive andhighlighted leaflets” was evaluated at 3.27 point Although MB Hoang QuocViet branch has operated for over nine years, the network market share is notwidely developed, but the website is still lack of information about interest rate,products and banking services In next time, MB Hoang Quoc Viet should createthe programs to upgrade the system and attached products on website clearly tomeet customer needs This proves that the picture with Marketing through Webpages of the bank actually effectively MB should relies on this criterion in order

to improve the bank's image, its activities so that customers feel more satisfiedabout the quality of its services

2.3.2 Customer’s evaluation on empathy dimension

Table 2.4: Customer’s evaluation on empathy

2.Employees consult customers on

a careful basis and deal with

customer complaints reasonable

3.Programs on promotion and

customer care after sales of the

bank are reliable

4.Employees are open, reliable and

(Source: Survey by author, 2016)

It can be seen clearly that the customers have quite high evaluations on thestaff’s professional qualifications of MB Hoang Quoc Viet , the criterion of

“Employees are open, reliable and enthusiastic with customers” accounted for anaverage point of 3.53 The assessment of “Employees consult customers on acareful basis and deal with customer complaints reasonable” has average agreevalue of 3.47 The customers identified the attribute of “Programs on promotionand customer care after sales of the bank are reliable” and “Dealing with worksaccurately and quickly” at the average agreed value of 3.34 and 3.21respectively According to above result, it is clear that the customer who hasbeen using the products of banking services in MB Hoang Quoc Viet said thatbanking staffs do not deal with the interests of customers and not promptly meet theirrequirements According to the survey, customers mentioned that the bank tellersconsult incompletely about the product information and lack paying attentions tocustomer needs when there are a large number of customers In addition, in this case,the bank tellers usually call customer’s name wrongly and enter the amount andaddress incorrectly due to mishearing

Two factors which concern the interests and meet promptly the customerrequirements are linked together, are conditions to meet best the customeragreement A staff that has skills to handle the job well will create the ways tosatisfy the customer requirements The fact that in MB Hoang Quoc Viet,training staff’s skills on customer care has not been invested the methodicaltraining, incomplete customer policies, and some other reasons by technologysystem at the branches In general, the service manners of MB Hoang Quoc Vietare relatively good but some customers still have not agreed because of a number

of objective and subjective existences Therefore, the bank should take themethods to limit the risks depending on each situation

Nevertheless, we can say Military commercial join stock bank is the leadingbank for customer service When the interest rate banks virtually no difference,only the openness, honesty and enthusiasm of staff with new customers is ameasure for understanding standards of bank customers

2.3.3 Customer’s evaluation on responsiveness dimension

Table 2.5: Customer’s evaluation on responsiveness

5.Simple, easy-to-understand, and

(Source: Survey by author, 2016)

The figure showed the professional service was rated the most optimistic bycustomers The customers also agree with two factors " Simple, easy-to-understand, and quick procedures” and “Providing timely the useful informationfor customers” which have the average value of 3.50 and 3.44 respectively

Because of applying technology when conducting transactions with customers,the bank can reduce the maximum waiting time, queuing, contacts, in addition tovouchers have been standardized clearly by the system, the bankingdocuments and procedures are evaluated well because most of transactions areapplied the available documents.

In the customer’s survey results, customer service in MB Hoang Quoc Vietbranch was evaluated quite well Nevertheless, in this dimension the authorreview again three attributes still can be improved are:

With the attribute “Waiting time is not too long” is evaluate with 3.37 averagepoint This proves that there is still a small number of customers are not reallyhappy with the transaction procedures in MB This will entail the customer towait longer in the transaction process MB Hoang Quoc Viet needs specialattention in order to further improve service quality

In addition, two factors which are underestimated and disagree are the attribute

“Professional support” with 3.12 average point and " Always timely responding

to customer requirements " with 3.07 average point During transactions withcustomers, the bank has tried its best to serve customers as quickly as possible,but the most timely not meet the requirements of customers in a timely manner isnot desirable and unavoidable This will be the criteria for Military commercialjoin stock bank trying to improve more Customers assessed the agree level notreally high with plenty of limitations, they expect to be responded a higher level

2.3.4 Customer’s evaluation on staff of MB Hoang Quoc Viet branch

These question raising 10 comments on the bank staff in Hoang Quoc Vietbranch of MB Customers for comment at each statement according to thefollowing options: (1) completely disagree, (2) disagree, (3) agree, (4)completely agree

Table 2.6: Customer’s evaluation on staff of MB Hoang Quoc Viet branch

1 Staff is open, honest and enthusiastic with customers 200 3.65

2 Staff is beautiful, polite and elegant 200 3.72

3 Staff has active and professional service style 200 3.24

4 Staff has much experience and good expertise 200 2.98

5 Staff has good communication skills, is always

6 Staff always timely provides customers with useful

8 Staff deals with operations carefully, accurately and

9 Staff always cares about customer benefits 200 3.43

10 Staff always quickly and timely meets customer

11 Staff reasonably deals with customer complaints 200 3.36

(Source: Survey by author, 2015)

Based on survey data tables of customers for bank staffs in MB Hoang QuocViet Branch, survey results showed that customers appreciated the staff formbeautiful, polite, elegant, with the highest value agrees average of 3.72; Next isthe statement, "Staff has good communication skills, is always friendly andenthusiastic" with the average value for 3.65 and 3.53 respectively Besides, thecustomer agrees with the statement of MB Hoang Quoc Viet Branch’s staff

"Staff always timely provides customers with useful information." "Staff alwayscares about customer benefits" The average value of 3.49 and 3.43 Thecomments on "Staff always cares about customer benefits" "Staff deals withoperations carefully, accurately and quickly”, respectively, are rated at 3.43 and

3 41 Also noted that "Staff reasonably deals with customer complaints", "Staffhas active and professional service style" customers also rated quite high at 3.36and 3.24 From the above statement can be seen that MB growing efforts to

improve its image bank towards a friendly, dynamic and professional However,there are some customers using the products and services in MB Hoang QuocViet back to that qualification of staff is not really stable, staff not really advisecustomers carefully Besides staff failing to meet customer's requirementsquickly, promptly; according to calculations, the average value was less than 3.According to the survey personnel profession is not really steady averaged at2.98 so crowded sometimes they traded product advisor incomplete information,lack of attention to customer needs, on the other hand who are constantlychanging due to staff changes and job hopping between rooms by the staff of thebranch transaction frequent rotation support each other, no fixed sitting position

so much as lead to employees not to fully grasp the needs of customers regularlyespecially loyal customers, often dealing with the bank This gives customerscrestfallen mentality when trading, sometimes crowded, the tellers easy customercall and enter the wrong amount, due to inaccurate address misheard

Three factors of "Staff has much experience and good expertise"; "Staff consultscustomers carefully", "Staff always quickly and timely meets customerdemands" the three elements have a close relationship with each other, whichprerequisites to best satisfy customer satisfaction on service quality Anemployee with strong qualifications, skilled work handled well, will know how

to advise the useful information to customers and responding, resolve customerwork quickly, promptly time to satisfy customer requirements

2.2.5 Customer’s evaluation on transaction time

In this question, yet the judgment of time serving customers such as:

(1) Transaction time can be evaluated exactly by staff

(2) Time for each operation of transaction is quick and accurate

(3) Procedures are simple, quick and easy to understand

(4) Time for transaction is quick

(5) Implementation time is as committed with customers