Determinants of consumer satisfaction on service quality in private comercial banks in ho chi minh city

RESEARCH PROJECT (BMBR5103) DETERMINANTS OF CUSTOMER SATISFACTION ON SERVICE QUALITY IN PRIVATE COMMERCIAL BANKS IN HO CHI MINH CITY STUDENT’S FULL NAME STUDENT ID INTAKE ADVISOR’S NAME & TITLE : PHAM NGOC DUNG : CGSVN00014973 : March, 2013 : PHAN DINH NGUYEN June, 2014 Page Advisor’s assessment Advisor’s signature Page ACKNOWLEDGMENTS I would like to express my deeply sincere gratitude to my teacher, Dr Phan Dinh Nguyen, for his valuable guidance and advice on effective method His professional research understanding helps me and my friends recognize the research method thoroughly and we had experienced actual process His comments and meaningful suggestions were contributed great help for my completion of this research In addition, I would like to special express my thanks to all of my classmates, my colleagues, my friends who are working in some banks in Ho Chi Minh City: Ms Ngo Tran Doan Trinh (VietBank), Mr Ky Minh Thien (Vietcombank), Mr Hoang Minh Hung (GPbank), Mrs Nguyen Thi Chau (Eximbank)….for their support and encouragement during the time I was doing my research And thank you to all customers who had spent precious time to answer the questionnaire for my topic Ho Chi Minh City, Vietnam September 6th 2014 Pham Ngoc Dung Page Table of Contents Advisor’s assessment Acknowledgements List of Tables and figures List of Abbreviations Abstract CHAPTER 1: INTRODUCTION 10 1.1 Problem statement 10 1.2 Research Objectives 11 1.3 Research questions 12 1.4 Scope and Methodology of Research 12 1.5 Research structure 12 CHAPTER 2: LITERATURE REVIEW 14 2.1Theoretical literature 14 2.1.1 Quality 14 2.1.2 Service 14 2.1.3 Service Quality 15 2.1.4 Customer Satisfaction 16 2.1.5 Relationship between Service Quality and Customer Satisfaction 18 2.2 Service Quality Research Models 19 CHAPTER 3: RESEARCH METHODOLOGY 21 3.1 Data sources 21 3.2 Methods of data analysis 21 3.2.1 For objective No.1 21 3.2.2 For objective No.2 21 a Scale 21 Page b Analysis steps to achieve objective 22 3.2.3 For objective No.3 23 3.3 Research Framework 24 3.4 Research Hypotheses 24 CHAPTER 4: BUSINESS SITUATION AND PERFORMANCE OF PRIVATE COMMERCIAL BANKS IN HCMC 25 4.1 General overview of the activities of private commercial banks that have headquater in HCMC 25 4.2 The basic existence and limitations 27 4.3 A number of reasons 29 CHAPTER : EMPIRICAL RESULTS AND DISCUSSION 32 5.1 Results of interviews about the customer personal information 32 5.2 Checking the relevence of the scale 33 5.3 Exploratory factor analysis 34 5.4 Regression Results 41 CHAPTER : SOME POSSIBLE SOLUTIONS ARE GIVEN TO IMPROVE CUSTOMER SATISFACTION ON SERVICE QUALITY OF THE PRIVATE BANKS IN HCMC 47 6.1 Conclusion 47 6.2 Policy Recommendation 48 REFERENCES 53 APPENDIX 56 Appendix A – Questionnaire Survey 56 Questionnaire Survey (English) 56 Questionnaire Survey (Vietnamese) 61 Appendix B 66-73 Page List of Tables and figures Table 1.1: Result of collected samples 11 Figure : Research Framework 24 Table 4.1: The overview about business activities of private banks 25 Table 4.2: The operations for mobilizing and lending capital of the banks 26 Table 5.1: Demographic profile of the sample respondents 32 Table 5.2 Rotated Component matrix 35 Table 5.3 : Component score coeficient matrix 41 Figure 2: Research model 42 Table 5.4 : Regression analysis 42 Table 5.5 : Correlations testing results 43 Table 5.6 : Coefficientsa 44 Table 5.7 : The order of the impact of these factors to customer satisfaction 46 Page List of Abbreviations HCMC Ho Chi Minh City ACB Asean Commercial Bank OCB Ocean Commercial Bank HDBank House Development Bank SCB SaiGon Commercial Bank ABBank An Binh Bank Page ABSTRACT The banking industry is rapidly changing This is the sector mainly depends on the trust and loyalty of the customer Therefore, in order to succeed and survive in the current market, banking managers need to design strategies to enhance service quality to satisfy customers better than competitors This study was conducted to identify the relationship between customer satisfaction, service quality of private commercial banks in Ho Chi Minh City (HCMC) It attempts to discover the impact of service quality on customer satisfaction in private commercial banks in HCMC Five dimensions in service quality (SERVPERF) such as tangibles, reliability, responsiveness, assurance and empathy (Cronin and Taylor, 1992) were used to evaluate satisfaction with the quality of banking services A Three-part questionnaire was developed as the instrument to collect data, using the five-point Likert scale, ranging from strongly disagree (1) to strongly agree (5) The structured questionnaire consists five (05) questions for Reliability, five (05) questions for Responsiveness, five (05) questions for Assurance, five (05) questions for Empathy and four (04) questions for Tangibility and five (05) for Customer satisfaction with relevant personal information There were 269 usable responses of 390 customers who received the questionnaire These customers were from five (05) private commercial banks in HCMC, such as : ABBank, OCB, VietABank, HDBank and SouthernBank, which approximates to 38,46% of the total number of banks that have headquarters in the area Data has been analysed by using SPSS software (version: 16) and combining the Exploratory Factors Analysis (EFA) with Binary Logistic Model Page Result of the study showed service quality dimensions is crucial for customer satisfaction in private commercial banks in HCMC and helps managers of commercial banks in HCMC taking measures to improve the level of satisfaction for customers in oder to keep old customers and attract new customers such as : variety of banks products and services, promote marketing activities and improve the capacity, skills of staff Page CHAPTER 1: INTRODUCTION 1.1 Problem statement The social is increasingly developing, life quality of people is increasingly high, so the consumer demand for the products that they choose is also higher Improving product and services quality is competitive trends that private commercial banks in Vietnam must pay attention in order to increase market share and face many challenges in term of competition, especially when large foreign financial groups and banks entered Vietnam Being aware of the importance of customer satisfaction, Vietnam banking system in general and the private commercial banks in Ho Chi Minh City in particular need to improve their operations as well as strengthen their images in customers’ eyes in order to be able to capture market shares, develop faster and have position in the market The problem that banks try their best to fulfill is how to give customers the best satisfaction in order to meet their needs when using bank’s products and services The study “Determinants of customer saisfaction on service quality in private commercial banks in HCMC” is not out of this purpose which aims to enhance customer satisfactions for improving the service quality of the private commercial banks in HCMC in the context of financial liberalization and globalization At the end of May, 2014 there are 13 private commercial banks that have headquarters in HCMC, such as : Eximbank, ACB, Sacombank, SaigonBank, NamAbank, VietcapitalBank, OCB, ABBank, DongAbank, VietABank, SCB, HDBank and SouthernBank Three (03) of them such as ACB, Eximbank, Sacombank which have been rated as good domestic banks for the last years by various domestic and international financial publications based on theirs financial situation, operation scale, long-term vision, strategy, market positioning, service quality, analysts’ assessments The remaining banks (10 banks) of them have Page 10 expertise knowledge when counseling for you V15 Bank employees have a high sense of responsibility in their work � � � � � Empathy V16 Banks always show attention to you � � � � � V17 Banks pay attention to what you are most interested and desire � � � � � V18 Banks understand your special needs � � � � � V19 Banks have more preferential policies for traditional customers, customers with reputable relations V20 Bank employees are actively interested in the your difficulties and always willing to assist you Tangibles V21 Transaction locations of bank is convenient for you V22 Time of banking operation are always convenient for your transactions V23 Spacious bank offices, beautiful interior, transaction counters are arranged logically, safe parking V24 Record of the proceedings is simple, clear and easy to understand Employees of bank are well dressed and appear neatly Customer Satisfaction C1 Generally speaking, you are completely satisfied with services of the Bank employees C2 Generally speaking, you are pleased with the facilities of the Bank C3 In short, you are completely satisfied with the quality of bank services C4 You will use these banking product and services more and more often C5 You will introduce banks to your friend � Page 59 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � PART III : MORE SUGGESTIONS FOR THE IMPROVEMENT OF SERVICE QUALITY Do you have any ideas to contribute to the improvement of service quality of commercial banks in HCMC? This section is used for your suggestions Besides, all other comments or ideas about service quality of commercial banks in HCMC are highly appreciated Such ideas are very valuable for this research …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… Thank you very much for your participation! Page 60 BẢNG KHẢO SÁT SỰ HÀI LỊNG CỦA KHÁCH HÀNG (Tiếng Việt) Tơi học viên trường OPEN UNIVERSITY MALAYSIA (OUM) thực nghiên cứu “Sự hài lòng khách hàng chất lượng dịch vụ ngân hàng thương mại cổ phần tư nhân thành phố HCM” Rất mong Anh/Chị dành chút thời gian quý báu để giúp chúng tơi hồn thành số câu hỏi liên quan sau Chúng xin cam đoan thơng tin Anh/Chị hồn tồn giữ bí mật Nếu Anh/Chị có câu hỏi nào, xin vui lịng liên lạc với tơi qua địa email: pndung73@gmail.com Chân thành cám ơn PHẦN I : THÔNG TIN CÁ NHÂN Xin anh chị cho biết giới tính � Nam � Nữ Xin anh chi cho biết anh chị thuộc nhóm tuổi � Dưới 30 � Từ 30 đến 45 � Từ 46 đến 60 � Trên 60 Xin anh chi cho biết nghề nghiệp � Kinh doanh �Nhân viên văn phòng Khác…… Xin anh chi cho biết thu nhập trung bình năm < 10 triệu đồng 10 < 20 triệu đồng Page 61 � Công nhân � 20 < 40 triệu đồng > 40 triệu đồng Xin vui lịng cho biết trình độ học vấn anh/chị �Phổ thông � Trung cấp, cao đẳng � Đại học �Sau đại học Xin vui lòng cho biết ngân hàng anh/chị giao dịch ngân hàng sau : � NH An Bình �NH Phát triển nhà � NH Việt Á � NH Phương Nam �NH Phương Đơng Xin vui lịng cho biết anh/chị giao dịch với ngân hàng (NH) � 01 NH � 02 NH � 03 NH � Trên 03 NH Xin vui lòng cho biết dịch vụ ngân hàng anh/chị sử dụng �Tài khoản toán � Tiền gửi tiết kiệm � Vay vốn �Sản phẩm thẻ (Nợ, Có) �Dịch vụ chuyển tiền �Dịch vụ ngân hàng điện tử (Mobile, Internet, SMS Banking) �Khác PHẦN II: ĐÁNH GIÁ SỰ HÀI LÒNG CỦA KHÁCH HÀNG KHI SỬ DỤNG DỊCH VỤ NGÂN HÀNG TẠI TPHCM Trong bảng câu hỏi này, Anh/ chi vui lòng cho biết dịch vụ ngân Vui lòng trả lời trung thực Xin đánh dấu chọn thích hợp với quy ước sau : “1”= Hoàn toàn phản đối; “2”= Khơng đồng ý ; “3”= Khơng có ý kiến ; “4”= Đồng ý; “5”= Hoàn toàn đồng ý Page 62 Ideas 10 11 12 13 14 15 16 Tin cậy Khi anh/chị gặp trở ngại, ngân hàng quan tâm giải vấn đề Ngân hàng cung cấp dịch vụ thời gian cam kết Thông tin giao dịch anh/chị bảo mật Thông tin truyền đạt từ Ngân hàng đáng tin cậy Biểu phí dịch vụ lãi suất hợp lý Đáp ứng Nhân viên ngân hàng có thái độ sẵn sàng phục vụ anh/chị nhanh chóng hạn Nhân viên ngân hàng sẵn sàng đến tận nợi để tư vấn hỗ trợ cho anh/chị Các tiện ích sản phẩm dịch vụ Ngân hàng đáp ứng yêu cầu anh/chị Thời gian xử lý hồ sơ thủ tục nhanh chóng Ngân hàng có nhiều chương trình tiếp thị, khuyến hấp dẫn Đảm bảo Nhân viên ngân hàng có thái độ phục vụ chu đáo, tận tình, tạo cho anh/chị cảm giác thoải mái Nhân viên ngân hàng hẹn tạo cho anh/chị tin tưởng Nhân viên ngân hàng ln xác nghiệp vụ tạo cho anh/chị cảm giác an toàn thực giao dịch Nhân viên ngân hàng có kiến thức chun mơn cao, chun nghiệp tư vấn cho anh/chị Nhân viên Ngân hàng có tinh thần trách nhiệm cao cơng việc � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � Cảm thông Ngân hàng thể quan tâm đến cá � � � � � Page 63 nhân anh/chị 17 18 19 20 21 22 23 24 Ngân hàng ý đến điều anh/chị quan tâm nhất, mong muốn Ngân hàng hiểu nhu cầu đặc biệt anh/chị Ngân hàng có sách ưu đãi khách hàng truyền thống, khách hàng có quan hệ uy tín Nhân viên Ngân hàng chủ động quan tâm đến khó khăn anh/chị sẵn sàng hỗ trợ anh/chị Hữu hình Địa điểm giao dịch Ngân hàng thuận lợi cho anh/chị Thời gian hoạt động Ngân hàng thuận tiện cho anh/chị giao dịch Trụ sở ngân hàng khang trang, nội thất đẹp, quầy giao dịch bố trí hợp lý, điểm giữ xe an tồn Hồ sơ thủ tục đơn giản, rõ ràng, dể hiểu Trang phục nhân viên lịch, gọn gàng Hài lòng khách hàng Nhìn chung, anh/chị hồn tồn hài lịng với cung cách phục vụ nhân viên Ngân hàng Nhìn chung, anh/chị hồn tồn hài lịng với sở vật chất Ngân hàng Tóm lại, anh/chị hịan tồn hài lịng với chất lượng dịch vụ Ngân hàng Anh/chị sử dụng sản phẩm, dịch vụ Ngân hàng nhiều thường xuyên Anh/Chị giới thiệu Ngân hàng cho bạn bè anh/chị � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � PHẦN III : Ý KIẾN ĐÓNG GÓP THÊM Theo anh/chị, anh/chị có ý kiến đóng góp cho việc cải thiện chất lượng dịch vụ ngân hàng thương mại địa bàn thành phố Hồ Chí Minh Phần Page 64 sử dụng cho đề nghị bạn Ngồi ra, tất lời bình luận ý kiến khác chất lượng dịch vụ ngân hàng thương mại cổ phần có giá trị cao Những ý kiến có giá trị cho nghiên cứu …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… Chân thành cám ơn hợp tác nhiệt tình Anh/Chị! Page 65 APPENDIX B Appendix : Cronbach’s Alpha Coefficient Reliability Stastistics Cronbach's Alpha N oH Items 0,762 24 Appendix : Exploratory Factor Analysis KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Sphericity Approx Chi-Square 767 5446.224 Df Sig 276 000 Total Variance Explained Component Extraction Sums of Squared Rotation Sums of Squared Loadings Loadings Initial Eigenvalues % of Total Variance Cumulative % Total % of Cumulative Variance % % of Cumulative Total Variance % 5.041 21.003 21.003 5.041 21.003 21.003 3.568 14.865 14.865 3.587 14.947 35.950 3.587 14.947 35.950 3.438 14.326 29.191 3.385 14.102 50.052 3.385 14.102 50.052 3.140 13.083 42.274 2.758 11.493 61.545 2.758 11.493 61.545 3.109 12.954 55.228 1.542 6.426 67.971 1.542 6.426 67.971 3.058 12.743 67.971 872 3.635 71.606 796 3.317 74.923 Page 66 689 2.871 77.794 684 2.851 80.645 10 637 2.653 83.298 11 574 2.392 85.690 12 551 2.295 87.985 13 438 1.824 89.809 14 409 1.704 91.513 15 374 1.559 93.072 16 347 1.444 94.516 17 286 1.190 95.706 18 274 1.143 96.850 19 255 1.061 96.505 20 238 0.993 97.910 21 218 0.909 98.903 22 029 0.121 99.813 23 009 0.036 99.970 24 007 0.030 100.000 Extraction Method: Principal Component Analysis Rotated Component Matrixa Component R1 004 729 006 172 -.071 R2 076 041 853 037 -.074 R3 057 -.002 825 043 -.098 R4 020 019 858 -.064 -.072 R5 -.065 087 744 496 -.010 Re1 015 -.089 -.034 -.010 853 Re2 775 -.061 065 098 031 Page 67 Re3 828 -.041 -.013 -.002 -.064 -.068 -.053 Re4 881 033 Re5 813 -.012 018 027 -.051 -.060 100 A1 -.072 -.009 656 A2 882 037 -.056 -.034 002 A3 054 008 -.033 012 870 A4 A5 079 -.053 -.015 026 650 -.052 -.081 -.040 041 811 E1 -.128 638 044 032 E2 -.090 -.001 626 -.025 213 -.059 E3 079 753 070 256 121 E4 -.040 894 057 187 -.056 E5 -.049 890 070 198 -.031 T1 023 268 -.003 913 -.022 T2 -.017 347 039 753 002 T3 008 264 -.005 906 -.017 800 -.102 -.044 218 -.010 T4 Extraction Method : Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation Converged in iterations -.008 Component Score Coefficient Matrix Component R1 010 254 -.019 -.082 -.009 R2 027 002 273 -.021 006 R3 021 -.033 265 024 -.006 R4 011 -.026 276 022 004 R5 -.014 028 238 -.043 026 Re1 -.002 -.010 020 -.006 281 Re2 217 -.038 028 057 004 Re3 232 009 000 -.021 -.005 Page 68 Re4 248 037 -.018 -.030 -.007 Re5 228 003 021 002 A1 -.017 -.018 061 -.004 -.042 219 A2 248 034 -.015 -.023 -.004 A3 010 025 019 -.018 288 A4 A5 018 -.009 019 007 214 -.020 -.020 -.016 016 266 E1 -.033 208 022 032 E2 -.017 -.027 204 -.026 -.042 -.009 E3 031 250 009 -.055 056 E4 -.000 316 -.006 -.112 002 E5 -.003 312 -.001 -.107 011 T1 010 -.093 -.003 345 -.023 T2 -.000 -.027 008 257 -.007 T3 006 -.093 -.004 343 -.021 303 020 -.010 -.085 -.010 T4 Extraction Method : Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization Component Scores Appendix : Results of regression Analysis Regression analysis Model Summary Model R 727a R Square Adjusted R Square Std Error of the Estimate 528 39211 513 a Predictors: (Constant), R, Re, A, E, T Page 69 ANOVAb Sum Squares Model of Df Mean Square F Sig Regression 27.500 5.500 000a Residual 24.600 160 154 Total 52.100 269 35.773 b Dependent Variable: CS Correlations testing results Correlations CS Pearson Correlation CS A 601** 490** 372** 433** 423** 000 000 000 000 000 269 269 269 269 269 Sig (2-tailed) A E T R E T R Re N 269 Pearson Correlation 601** 368** 249** 467** 337** Sig (2-tailed) 000 000 001 000 000 N 269 269 269 269 269 Pearson Correlation 490** 368** 132 256** 284** Sig (2-tailed) 000 000 091 001 000 N 269 269 269 269 269 Pearson Correlation 372** 249** 132 150 240** Sig (2-tailed) 000 001 091 053 002 N 269 269 269 269 269 Pearson Correlation 433** 467** 256** 150 299** Sig (2-tailed) 000 000 001 053 N 269 269 269 269 269 Page 70 269 269 000 269 269 Re Pearson Correlation 423** 337** 284** 240** 299** Sig (2-tailed) 000 000 000 002 000 N 269 269 269 269 269 ** Correlation is significant at the 0.01 level (2- 269 tailed) Coefficientsa Model Unstandardized Standardized Coefficients Coefficients B Collinearity Statistics Std Error Beta T (Constant) -.355 278 -1.276 204 A 363 070 345 5.216 000 676 1.480 E 254 058 262 4.405 000 831 1.203 T 229 066 197 3.457 001 911 1.098 R 142 067 132 2.110 036 755 1.325 Re 147 061 146 2.421 017 814 1.228 a Dependent variable: CS Page 71 Sig Tolerance VIF Page 72 Page 73 ... customer satisfaction, service quality of private commercial banks in Ho Chi Minh City (HCMC) It attempts to discover the impact of service quality on customer satisfaction in private commercial banks. .. dimensions of service quality that affect customer satisfaction in commercial banks in HCM city? What should the private commercial banks in HCMC in order to improve the level of satisfaction of. .. application of modern banikng technology in business Developing corebanking, enabling centralized data processing, and connecting and paing online throughout system of credit institutions Creating conditions