Determinants of adidas''''s supply chain performance in Asia Pacific region

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY - Nguyễn Mỹ Phước FACTORS AFFECTING CONSUMERS’ RE-PURCHASE INTENTION TOWARDS RETAIL BANKING SERVICES IN VIETNAM MASTER THESIS Ho Chi Minh City, 2011 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY - Nguyễn Mỹ Phước FACTORS AFFECTING CONSUMERS’ RE-PURCHASE INTENTION TOWARDS RETAIL BANKING SERVICES IN VIETNAM Major: Business Administration Code: 60.34.05 MASTER THESIS Supervisor: Nguyễn Thị Mai Trang Ho Chi Minh City, 2011 ACKNOWLEDGEMENT First of all, I would like to express my deep appreciation to my supervisor Dr Nguyen Thi Mai Trang, a respectable, responsible and resourceful scholar, who had read and re-read my work repeatedly, thanks her for all the patience, valuable guidance, and perspectives throughout the research Without her exceptional support, I could not have completed my thesis I wish to express my appreciation Dr Tran Ha Minh Quan, my head teacher, for his encourages Thanks and love in abundance to my parents, who provided much support in everything I would like also thank all my best friends who had assisted and supported me, especially in valuable research database, data collection process ABSTRACT With the intense competition and increasing globalization in the financial markets, bank management must develop customer-oriented strategies in order to compete successfully in the competitive retail-banking environment The longer a bank can retain a customer, the greater revenue and cost savings from that customer However, customers are also more prone to changing their banking behaviour when they can purchase nearly identical financial products provided by the retail banks In order to stay competitive, bank managers need to understand the factors that influence and determine bank consumers’ re-purchase intention Purpose: This study identifies and analyses the factors that influence bank customers’ re-purchase intention in the Vietnamese retail banking industry Methodology: Sampling technique is used to select the respondents from some banks in Ho Chi Minh City Multiple regression analysis was used to identify relationship between independent variables (convenience, service quality, competitiveness of price, reputation and tangibles) and the dependent variable (bank customers’ repurchase intention) Findings: The findings reveal that Convenience, Service quality, Competitiveness of price, and Reputation have an impact on bank customers’ re-purchase intention Practical implications: In general, the results of this research allow service marketers to develop and implement services marketing strategies to increase bank customers’ re-purchase intention rates, and in turn, increase bank profits Keywords: Convenience, Service quality, Competitiveness of price, Reputation and Tangibles, Bank customers’ re-purchase intention, Retail banking services, Vietnam GLOSSARY Automated teller machine (ATM) A special device that allows customer to make debit transactions for electronic payment and delivers cash Phone Banking Banking services that allow a customer to interact with a financial institution from a remote location by using a telephone (Telephone banking or Telebanking) Internet banking Systems that enable bank customers to access accounts and general information on bank products and services through a personal computer (PC) or other intelligent devices Table of Contents List of Figures i List of Tables ii CHAPTER 1: INTRODUCTION 1.1 Research background 1.2 Problem statement 1.3 Research objective 1.4 Scope and Research methodology 1.5 The structure of the research CHAPTER 2: LITERATURE REVIEW 2.1 Bank customers’ re-purchase intention 2.2 Convenience 2.3 Service quality 2.4 Competitiveness of price 2.5 Reputation 11 2.6 Tangibles 12 Research model 12 CHAPTER 3: RESEARCH METHODOLOGY 14 3.1 Design and sample 14 3.1.1 Qualitative survey 14 3.1.1.1 Qualitative survey procedure 14 3.1.1.2 Results of the focus group 15 3.1.2 Quantitative survey 15 3.2 Sample size 16 3.3 Measurement 17 3.4 Data processing and analysis method 18 3.5 Summary 20 CHAPTER 4: RESULTS AND DISCUSSION 21 4.1 Description of sample 21 4.2 Assessment of scale 22 4.2.1 Reliability testing 22 4.2.2 Exploratory Factor Analysis (EFA) 25 4.3 Research hypothesis testing 27 4.4 Summary 29 CHAPTER 5: CONCLUSIONS AND RECOMMENDATION 30 5.1 Conclusion 30 5.2 Research implications 30 5.2.1 Theoretical implications 30 5.2.2 Managerial implications 31 5.3 Limitations and further research recommendation 33 References 35 APPENDICES 38 Appendix 1: Survey Questionnaire (in Vietnamese) 38 Appendix 2: Survey Questionnaire (in English) 40 Appendix 3: Reliability of Convenience 42 Appendix 4: Reliability of Service Quality 43 Appendix 5: Reliability of Competitiveness of Price 44 Appendix 6: Reliability of Reputation 45 Appendix 7: Reliability of Tangibles (before deleting TAN3 item) 46 Appendix 8: Reliability of Tangibles (after deleting TAN3 item) 47 Appendix 9: Reliability of Consumers’ Re-purchase Intention 48 Appendix 10: Pearson correlation coefficient 49 List of Figures Figure 1.1: Vietnam’s banking market is in an early stage of development Figure 2.1: Research model 13 i List of Tables Table 3.1: Guidelines for focus group interview .15 Table 3.2: Findings from the focus group interview 15 Table 3.3: Description of factors 157 Table 4.1: Sample description statistic 22 Table 4.2: Reliability statistic and items – total statistic of components .264 Table 4.3: Rotated Component Matrix 26 Table 4.4: Model Summary 267 Table 4.5: Coefficients of independent variables 278 Table 4.6: Summary of hypotheses testing results 288 ii CHAPTER 1: INTRODUCTION 1.1 Research background In recent years, the growth of Vietnam financial services sector has been gone up significantly On lending side, “the four large state-owned commercial banks — Vietnam Bank for Agriculture and Rural Development (Agribank), Bank for Investment and Development of Vietnam (BIDV), Bank for Foreign Trade of Vietnam (Vietcombank) and Vietnam Bank for Industry and Trade (Vietinbank) — continue to dominate Vietnam’s banking system, accounting for 51% of systemwide loans at end-September 2009 (2008: 52%; 2007: 54%) They very actively distributed two-thirds of all loans at subsidised interest rates and thereby defended their market shares The two largest privately owned banks — Asia Commercial Bank (ACB) and Sacombank — recorded exceptionally brisk loans growth in first nine months 2009 (un-annualised): 78% and 62%, respectively.” (Fitch Ratings, 2010) Under World Trade Organization rules, Vietnam has to open the economy, including financial services, to global competition International banks have looked forward to enter into Vietnam’s young and potential market Consequently, not only competition has become higher in this sector, but also consumer has more options for their financial services needs However, “Vietnam is largely undeveloped territory for banking services Out of a total population of 84 million people, just million have a personal bank account, and only 2% have ever taken out a bank loan Even in the biggest cities, consumers’ use of bank services is still rare Only about half of Hanoi’s residents and than a third of those living in Ho Chi Minh City have bank accounts City dwellers are eager to embrace modern financial products The number of credit card holders has jumped 300% since 2004, to some million, and demand for loans to finance the ... lowering of entry barriers and blurring product lines of banks and nonbanks since the financial sector reforms, banks are functioning increasingly under competitive pressures emanating from within... capability of firms Moreover, according to a study of Anderson et al (1976), one of the highestranking determinant factors of selecting a bank in the USA is the reputation of the bank In a study... customers’ re-purchase intention In the banking industry, Gerrard & Cunningham (2004) suggest that price plays a more influential role in influencing customers’ re-purchase intention behaviour Therefore,