Determinants of customer satisfaction on mortgate service, a case study of anz bank vietnam limited

MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS- HOCHIMINH CITY PHUNG NGUYEN THUC KHUE DETERMINANTS OF CUSTOMER SATISFACTION ON MORTGAGE SERVICE: A CASE STUDY OF ANZ BANK VIETNAM LIMITED MASTER THESIS Ho Chi Minh City- 2010 MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS- HOCHIMINH CITY Phung Nguyen Thuc Khue DETERMINANTS OF CUSTOMER SATISFACTION ON MORTGAGE SERVICE: A CASE STUDY OF ANZ BANK VIETNAM LIMITED MASTER THESIS In Finance- Banking Ology Code: 60.31.12 Supervisor Assoc Prof Dr Nguy n Minh Ki u Ho Chi Minh City- 2010 ACKNOWLEDGEMENT First of all, I would like to express my deepest gratitude and sincerest thanks to Dr Nguyen Minh Kieu, my thesis tutor, for his valuable and patient guidance, advice and support during my research Second, I would like to thanks all professors, tutors and my classmates who gave me the academic knowledge, support, encouragement and sharing experience to help me complete this research successfully I also express my sincere thanks to my old colleagues at ANZ Bank Vietnam Limited and all the respondents who helped me to build the qualitative research and complete the survey Personally, I am deeply indebted my parents who always expect and encourage me much during the last three years I could not make it without them Ho Chi Minh City, December 2010 Phung Nguyen Thuc Khue ABSTRACT Recently banking industry has become severely competitive environment than ever before When the banking products are easy to imitate, then the service quality becomes important and significant for banks to increase their competitive capacity This research, therefore, focused on measuring customer satisfaction on mortgage lending service which occupies a large portion in retail lending market ANZ Bank Vietnam Limit was chosen for a case study in consideration of their strong foothold in retail lending market after seventeen years of officially operating in Vietnam This research attempted to figure out the most important factor influenced mortgage customer satisfaction Based on that, the research findings provided meaningful recommendations and managerial implications for ANZ Bank Vietnam Limited’s management board Sample of 150 respondents was selected, it was executed mostly in email and telephone interview Collected data was analyzed by using SPSS 16.0 Main analyses were exploratory factor analysis, correlation, reliability with Cronbach’s Alpha, multiple linear regression The result addressed that the key satisfactions of mortgage customers at ANZ Bank Vietnam Limited were Core Dimension, Relational Dimension, Price, Tangible Dimension and Customer Expertise respectively Managerial implications for management board of ANZ Bank Vietnam Limited were provided Subsequently, limitations of the research were discussed for future studies in related field TABLE OF CONTENTS ACKNOWLEDGEMENTS ABSTRACT TABLE OF CONTENTS LIST OF FIGURES LIST OF TABLES LIST OF ABBREVIATIONS CHAPTER 1: INTRODUCTION 1.1 BACKGROUND 1.2 PROBLEM STATEMENT 1.3 RESEARCH QUESTIONS AND OBJECTIVES 1.4 RESEARCH METHODOLOGY 1.5 SCOPE AND LIMITATION 1.6 THE STRUCTURE OF THE STUDY CHAPTER 2: LITERATURE REVIEW 2.1 OVERALL ON CUSTOMER SATISFACTION 2.2 OVERALL ON CUSTOMER SATISFACTION IN MORTGAGE LENDING 2.3 DETERMINANTS OF CUSTOMER SATISFACTION IN MORTGAGE LENDING 2.3.1 Service quality10 2.3.2 Service price 12 2.3.3 Customer expertise 12 2.4 RESEARCH MODELS AND RESEARCH HYPOTHESES OF CUSTOMER SATISFACTION IN MORTGAGE LENDING .13 2.5 CHAPTER SUMMARY 15 CHAPTER 3: RESEARCH METHODOLOGY 16 3.1 QUALITATIVE RESEARCH STAGE 18 3.1.1 General result of the survey 19 3.1.2 Result on Core Dimension determinant 19 3.1.3 Result on Relational Dimension determinant 20 3.1.4 Result on Tangible determinant 21 3.1.5 Result on Competitive price determinant 21 3.1.6 Result on Customer Expertise determinant 22 3.2 QUANTITATIVE RESEARCH STAGE 22 3.2.1 Target population and sampling method 3.2.2 Data collection 3.2.3 The questionnaire design 22 23 23 3.2.4 Data analysis method 24 3.2.4.1 Descriptive statistic 24 3.2.4.2 Reliability testing 24 3.2.4.3 Assessment of Unidimensionality, Convergent validity and Discriminant validity 25 3.2.4.4 Multiple regression analysis 25 3.3 CHAPTER SUMMARY 25 CHAPTER 4: DATA ANALYSIS AND FINDINGS 26 4.1 SAMPLE CHARACTERISTICS 26 4.2 DATA ANALYSIS 28 4.2.1 statistics Descriptive 28 4.2.2 Reliability 30 assessment 4.2.3 Evaluation the measurement scale by using exploratory factor analysis 32 4.2.4 Assessment of convergent validity and of discriminate validity 33 4.2.5 Factor analysis of dependant factor 34 4.2.6 The adjusted research model 35 4.3 TESTING OF HYPOTHESES 35 4.4 MULTIPLE REGRESSIONS 37 4.4.1 Multiple regression formula 38 4.4.2 Multiple regression result 38 4.5 DISCUSSION 40 4.5.1 Application of theoretical conceptual framework 40 4.5.1.1 The relationship between service quality and customer satisfaction 40 4.5.1.2 The relationship between price and customer satisfaction 40 4.5.1.3 The relationship between customer expertise and customer satisfaction 40 4.5.2 The result of measuring ANZ mortgage customer satisfaction 41 4.5.2.1 Service quality 41 4.5.2.2 Price 41 4.5.2.3 Customer satisfaction 42 4.5.3 Outcomes of hypothesis test 42 4.6 CHAPTER SUMMARY 42 CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS 43 5.1 CONCLUSIONS 44 5.2 RECOMMENDATIONS 44 5.3 LIMITATION AND DIRECTION FOR FURTHER STUDIES 46 REFERENCE APPENDICES LIST OF FIGURES Figure 1.1: Research procedure Figure 2.1: Conceptual framework proposed by Mc Dougall and Levesque 14 Figure 2.2: The conceptual framework proposed by Naser and Jamal 15 Figure 2.3 The conceptual framework proposed by Nguyen Dinh Tung 16 Figure 3.1: The proposed research model 17 Figure 4.1: The adjusted research model 35 LIST OF TABLES Table 3.1: General result of agreement on selected factors 19 Table 3.2: General result of agreement on Core dimension factor 20 Table 3.3: General result of agreement on Relational dimension factor .20 Table 3.4: General result of agreement on Tangible dimension factor 21 Table 3.5: General result of agreement on Price factor 21 Table 3.6: General result of agreement on Customer expertise factor 22 Table 4.1: Age of customer 26 Table 4.2: Monthly income of customers 27 Table 4.3: Customer’s employment 27 Table 4.4: Descriptive statistic 29 Table 4.5: Final result of Reliability testing of the whole mod 30 Table 4.6: Final result of Reliability testing of each factor 31 Table 4.7: The final result of Unidimensionality testing 32 Table 4.8: The analysis result of Convergent validity 33 Table 4.9: The result of factor analysis for Customer satisfaction 34 Table 4.10: Correlation matrix 36 Table 4.11: Model summary 38 Table 4.12: ANOVA 38 Table 4.13: COEFFICIENTS 39 Table 4.14: ANZ mortgage customer perception 41 Qualitative In-depth Interview form (English) PHI U TH M DÒ Ý KI N CÁC CHUYÊN GIA TRONG NGÀNH NGÂN HÀNG Kính th a anh/ch , Chúng tơi h c viên c a Ch ng trình Cao h c Chuyên ngành Ngân hàng c a tr ng i h c Kinh t Tp.HCM Hi n ang th c hi n tài nghiên c u v y u t nh h ng n s hài lòng c a khách hàng trình giao d ch vay v n mua nhà t i ngân hàng Chúng mong mu n c anh/ch dành chút th i gian tr l i nh ng câu h i d i ây theo kinh nghi m c a b n thân q trình cơng tác Khơng có câu tr l i úng hay sai cho nh ng câu h i Tr c tiên, xin anh/ch cho bi t v nh ng thông tin cá nhân c a mình: H tên :…………………………………………… S i n tho i :……………………… E-mail:……………………………… a i m ph ng v n:…………………………… Ngày:…………………… Xin anh/ch cho bi t ý ki n c a nh ng câu h i sau: 1/ Theo anh ch , nh ng y u t v ch t l ng d ch v sau ây có nh h ng n s hài lòng c a khách hàng trình giao d ch vay v n mua nhà t i ngân hàng không? STT Yut Ngân hàng cung c p y s n ph m cho vay mua nhà nh ã công b Ngân hàng th c hi n d ch v cho vay mua nhà úng ti n th i gian ã cam k t v i khách hàng Ngân hàng ln t n tình gi i quy t v n mà khách hàng g p ph i Nhân viên ngân hàng th c hi n nghi p v xác l n u tiên Nhân viên ngân hàng có ki n th c k n ng chun mơn có th gi i thích rõ ràng, c th v s n ph m cho vay mua nhà cho khách hàng Th i gian giao d ch c a ngân hàng linh ho t thu n ti n STT Yut 10 11 12 13 14 15 cho khách hàng Các gi y t ngân hàng yêu c u t khách hàng quy trình th c hi n kho n vay khơng q ph c t p, r m rà, ó khách hàng không ph i n ngân hàng nhi u l n trình cung c p kho n vay Ngân hàng th hi n s quan tâm n t ng cá nhân khách hàng Nhân viên ngân hàng hi u rõ nhu c u khách hàng s!n sàng t v n, giúp " khách hàng ch n l a d ch v thích h p cho khách hàng nh t Ngân hàng cung c p d ch v b# tr i kèm v i kho n vay (t ng b o hi m cho c n nhà th ch p, t v n v c n nhà s$p mua, …) Khơng khí làm vi c ngân hàng t o c m giác tho i mái, an toàn tin c y cho khách hàng Các chi nhánh ngân hàng t v trí thu n ti n cho vi c giao d ch v i khách hàng Các ph ng ti n v t ch t c a ngân hàng hi n i, chuyên nghi p thân thi n Ngân hàng có ch% u xe thu n ti n cho khách hàng Ch ng t giao d ch ngân hàng rõ ràng, d& hi u i v i khách hàng Ngân hàng có ti n ích nh internet banking/mobile banking khách hàng có th d& dàng tra c u thông tin v kho n vay Các y u t khác c n b# sung thêm ch t l ng d ch v cho vay c a ngân hàng (n u có): …………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… 2/ Theo anh ch , nh ng y u t v lãi su t cho vay lo i phí có liên quan có nh h ng n s hài lòng c a khách hàng trình giao d ch vay v n mua nhà t i ngân hàng không? STT Ngân hàng cung c p lãi su t cho vay th p h n h n so v i lãi su t ngân hàng khác Yut Ngân hàng khơng thu phí ho c thu r t lo i phí có liên quan n kho n vay (ví d : phí th m nh tài s n, Yut STT phí qu n lý tài s n, phí tốn tr c h n, …) Lãi su t phí áp d ng cho s n ph m vay mua nhà c quy nh rõ ràng h p lý Các y u t khác c n b# sung thêm liên quan n lãi su t cho vay lo i phí có liên quan nh h ng n s hài lịng c a khách hàng q trình vay v n t i ngân hàng (n u có): ………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… 3/ Theo anh ch , m c thành th o hi u bi t c a khách hàng có nh h ng n s hài lịng c a khách hàng trình giao d ch vay v n mua nhà t i ngân hàng không? Yut STT Khách hàng hi u bi t v ngành ngân hàng, s n ph m tín d ng ngân hàng Khách hàng có kinh nghi m vi c i vay mua nhà ngân hàng Khách hàng có y thơng tin v d ch v cho vay mua nhà c a ngân hàng Các y u t khác c n b# sung thêm y u t m c thành th o hi u bi t c a khách hàng có nh h ng n s hài lịng c a khách hàng q trình vay v n t i ngân hàng (n u có): …………………………………………………………… …………………………………………………………………………………………………… ……………………………… 4/ Theo anh/ch , nh ng tiêu chí có th nh h ng n s hài lịng c a khách hàng q trình giao d ch vay v n mua nhà t i ngân hàng khơng? ó nh ng tiêu chí nào? …………………………………………………………………………………………………… …………………………………………………………………………………………………… …………………………………………………………… Xin cám n anh/ch ã dành th i gian quý báu tr l i góp ý cho b ng câu h i này!!! APPENDIX 2: In-depth Interview Form in English and Vietnamese for customers Qualitative In-depth Interview form (English) QUESTIONNAIRE Dear Sir/Madam, My name is ……………………………………… as partner of research team belong to University of Economics Ho Chi Minh City I am conducting a research to access some of the key determinants of mortgage customer satisfaction Would you please answer the below questions as your thoughts and beliefs? It is not the matter of right or wrong answer We would be very appreciated your own sharing thoughts and beliefs Thank you I/ Your personal details: Full name:……………………………………………………………………… Phone number: ……………………… Email:……………………………… Age: 20 years old or less From 21 to 30 years old From 31 to 40 years old From 41 to 50 years old From 51 to 60 years old More than 60 years old Income: (Unit: VND million/month) < 10 From 10 to less than 15 From 15 to less than 25 From 25 to less than 35 From 35 to less than 45 From 45 to less than 55 More than 55 Occupation: State-owned companies Private companies Foreign companies II/ Your expertise: No EXP1 Please indicate the degree of your expertise in banking on the fo marking (X) If you strongly agree with answer on the right, mark (X) the num If you strongly disagree with answer on the right, mark (X) the n If your feeling is not strong, mark one of the number in the midd I know very little about EXP2 banking I am inexperienced in lending EXP3 transaction with the bank I am uninformed about mortgage lending products of ANZ III/ Service quality Please indicate the degree of your agreement on th following questions by marking (X) No COR1 COR2 COR3 COR4 COR5 REL1 REL2 If you strongly agree, mark (X) the number If you strongly disagree, mark (X) the number If your feeling is not strong, mark one of the numb in the middle Mark only one (X) for each statement The bank provides mortgage lending products announced The bank provides mortgage lending products within the committed time The bank should show sincere interest in handling customer’s issues The bank’s staff perform the service properly a the first time The bank’s staff has knowledge and skill to explain clearly to customer about mortgage lending products Time of the bank transaction is convenient for customer Required documents from the bank and the lending process are not so wordy and complicated, hence customer don’t have to com to the bank many times during the loan proces REL3 REL4 REL5 TAN1 TAN2 TAN3 TAN4 TAN5 StronglyDisagree No Please indicate the degree of your agreement on the following questions by marking (X) If you strongly agree, mark (X) the number If you strongly disagree, mark (X) the number If your feeling is not strong, mark one of the numbers in the middle Mark only one (X) for each statement The bank shows its care to each customer Bankers know clearly about customer’s need and ready to consult customer the most suitable product The bank gives additional service (insurance for the mortgaged property, consult about the to-bepurchased property) The bank brings the safe, trust and comfortable feeling to customers Branches of the bank have convenient locations The bank’s equipments are modern and professional Parking place is convenient The bank provides easy understood documents The bank has internet/mobile banking facilities so that customer could easily get information about their loan Please indicate the degree of your agreement on the following questions by marking (X) If you strongly agree, mark (X) the number No If you strongly disagree, mark (X) the number If your feeling is not strong, mark one of the numbers in the middle Mark only one (X) for each statement INT1 Mortgage lending interest rate of ANZ is lower than which of other banks INT2 Fees that customer must pay within mortgage lending process at ANZ (security valuation fee, security management fee, early repayment fee…) are lower than which of other banks INT3 Lending interest rate and fee are stipulated clearly and reasonably StronglyDisagree IV/ Price V/ Your satisfaction with mortgage lending service of ANZ Mortgage lending service of ANZ meet your expectations and you are satisfied with mortgage lending service of ANZ: Strongly disagree Disagree Indifference Agree Strongly agree In your opinion, mortgage lending service of ANZ is better than which of other banks where you or your friends or your relatives have transaction: Strongly disagree Disagree Indifference Agree Strongly agree After using mortgage lending service of ANZ, will you recommend it to your friends or relatives once they have need? Strongly disagree Disagree Indifference Agree Strongly agree Will you re-use mortgage lending service of ANZ once you have need? Strongly disagree Disagree Indifference Agree Strongly agree Thank you for your co-operation Qualitative In-depth Interview form (English) PHI U TH M DÒ Ý KI N KHÁCH HÀNG Kính th a q khách hàng, Chúng tơi trân tr ng cám n quý khách ã s' d ng d ch v cho vay mua nhà c a Ngân hàng ANZ Vietnam (ANZ) th i gian qua giúp nâng cao ch t l ng ph c v , xin quý khách hàng dành chút th i gian tr l i câu h i phi u th m dị Khơng có câu tr l i úng hay sai cho nh ng câu h i d i ây, mong i nh ng câu tr l i chân thành nghiêm túc t quý khách I/ Nh ng thông tin chung v cá nhân quý khách: Tên: ………………………………………………………………………… S i n tho i: …………………… Email: ………………………………… tu#i: 20 tu#i ho c h n T T 31 n 40 tu#i T T 51 n 60 tu#i H n 60 tu#i ( n v tính: tri u Thu nh p: ng/tháng) < 10 T 10 n nh h n 15 T 15 n nh h n 25 T 35 T 25 n nh h n 35 n nh h n 45 Nhi u h n T 45 n nh h n 55 55 N i công tác: Công Công ty t nhân ty nhà n c Công ty Cơng ty riêng/T kinh doanh n c ngồi II/ M c thành th o vi c s d ng d ch v vay v n ngân hàng c a quý khách: N u quý khách hoàn toàn ng ý v i c t bên ph i, khoanh trò N u quý khách hoàn toàn ng ý v i c t bên trái, khoanh trịn N u q khách khơng ch c ch n khoanh trịn vào s (Ch khoanh vào m t s m t câu) Tơi bi t r t v ngân hàng Tơi khơng có kinh nghi m vi c vay v n mua nhà t ngân hàng Tơi khơng h có thông tin v s n ph m cho vay mua nhà t i Ngân hàng ANZ EXP1 EXP2 EXP3 III/ Ch t l STT COR1 COR2 COR3 COR4 COR5 REL1 REL2 REL3 REL4 ng d ch v cho vay mua nhà t i ngân hàng ANZ: Các tiêu chí Ngân hàng cung c p y s n ph m cho vay mua nhà nh ã công b Ngân hàng th c hi n d ch v cho vay mua nhà úng ti n th i gian ã cam k t v i khách hàng Ngân hàng t n tình gi i quy t v n mà khách hàng g p ph i Nhân viên ngân hàng th c hi n nghi p v xác l n u tiên Nhân viên ngân hàng có ki n th c k n ng chuyên môn có th gi i thích rõ ràng, c th v s n ph m cho vay mua nhà cho khách hàng Th i gian giao d ch c a ngân hàng linh ho t thu n ti n cho khách hàng Các gi y t ngân hàng yêu c u t khách hàng quy trình th c hi n kho n vay không ph c t p, r m rà, ó khách hàng khơng ph i n ngân hàng nhi u l n trình cung c p kho n vay Ngân hàng th hi n s quan tâm n t ng cá nhân khách hàng Nhân viên ngân hàng hi u rõ nhu c u khách hàng s!n sàng t v n, giúp " khách hàng ch n l a d ch v thích h p cho khách hàng nh t Ngân hàng cung c p d ch v b# tr i kèm v i kho n vay (t ng b o hi m cho c n nhà th ch p, t Hồn tồnkhơngng ý STT REL5 TAN1 TAN2 TAN3 TAN4 TAN5 STT Hồn tồnkhơngng ý IV/ Lãi su t lo i phí cho vay mua nhà t i ngân hàng ANZ INT1 INT2 INT3 V/ M c hài lòng c a quý khách ivi d ch v cho vay mua nhà c a ngân hàng ANZ D ch v cho vay mua nhà c a ngân hàng ANZ áp ng c nh ng quý khách mong i q khách hồn tồn hài lịng v i d ch v cho vay mua nhà c a ngân hàng ANZ: Hồn tồn khơng (ng ý Khơng (ng ý Bình th ng (ng ý Hồn tồn (ng ý Theo nh n xét c a quý khách, d ch v cho vay mua nhà c a ngân hàng ANZ t t h n so v i nh ng ngân hàng khác mà quý khách ã t ng giao d ch ho c nghe b n bè ng i thân k l i: Hồn tồn khơng (ng ý Khơng (ng ý Bình th ng (ng ý Hồn tồn (ng ý Sau s' d ng d ch v vay mua nhà t i ngân hàng ANZ, n u ng i thân b n bè có nhu c u, quý khách s) gi i thi u v d ch v cho vay mua nhà c a ngân hàng ANZ: Hồn tồn khơng (ng ý Khơng (ng ý Bình th ng (ng ý Hoàn toàn (ng ý N u có nhu c u vay mua nhà, quý khách s) s' d ng l i d ch v cho vay mua nhà c a ngân hàng ANZ: Hồn tồn khơng (ng ý Khơng (ng ý Bình th ng (ng ý Hoàn toàn (ng ý Xin chân thành cám n s h p tác c a quý khách ... OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS- HOCHIMINH CITY Phung Nguyen Thuc Khue DETERMINANTS OF CUSTOMER SATISFACTION ON MORTGAGE SERVICE: A CASE STUDY OF ANZ BANK VIETNAM LIMITED MASTER... Times, The Asian Banker and Finance Asia, ANZ has no official research on customer? ??s satisfaction on its services, what is the key factor mostly effect customer? ??s satisfaction and what to improve... To analyze satisfaction level of customer on mortgage product of ANZ - To study the effect of main determinants on customer? ??s satisfaction on mortgage lending service at ANZ - To give out appropriate