Assessment of customer satisfaction on services quality the case of joint stock commercial bank for foreign trade of viet nam

Lunghwa University of Science and Technology Business Administration School Master’s Thesis ASSESSMENT OF CUSTOMER SATISFACTION ON SERVICES QUALITY: THE CASE OF JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIET NAM Graduate Student: Trinh Thi Nguyet Anh Supervisor:Accoc.Prof.Pham Thi Lien Prof.Jia-Ching Juo Mar, 2018 Lunghwa University of Science and Technology Approval Certificate of Master’s Degree Examination Board This is to certify that the Master’s Degree Examinations Board has approved the thesis “Assessment of customer satisfaction on services quality: The case of Joint Stock Commercial Bank for Foreign Trade of Vietnam” published by Ms Trinh Thi Nguyet Anh in the Master Program of Department of Business Administration Master’s Degree Examination Board BOARD MEMBERS:………………………………… …………………………………… …………………………………… ADVISORS : Assoc.Prof Pham Thi Lien Prof.Jia-Chinh Juo Xác nhận chỉnh sửa luận văn Giảng viên hướng dẫn Assoc.Prof.Pham Thi Lien Date: 12/03/2018 i ABSTRACT Thesis title: “Assessment of customer satisfaction on services quality:The case of Joint Stock Commercial Bank for Foreign Trade of Vietnam”Pages Number: 46 University: Lunghwa University of Science and Technology Graduate School: Department of Business Administration Date: March, 2018 Degree: Master Graduate student: Trinh Thi Nguyet Anh Advisor: Assoc.Prof Pham Thi Lien Prof.Jia-Chinh Juo Key words: Vietcombank, the measure system of customer satisfaction by Net Promoter Score (NPS), customer satisfaction, BLAST model, “3 factors principle” Vietcombank decided to build the measure system of customer satisfaction by Net Promoter Score (NPS) with main purpose to manage and improve the customer services quality professionally day by day Obviously, competitive advantages will belong to banks with the best customer services and satisfy over the demands of customer gradually Before applying officially on Vietcombank system, Net Promoter Score had been using at Operation Center and some Vietcombank’s big branches in Vietnam, which means the necessary of exact assessment system based on NPS Therefore, examination customer satisfaction about service quality by NPS is a necessary requirement to apply it on Vietcombank system in the next time Basing on successful frames of giant branches as: McDonald’s (2015 – CEO Easterbrook); General Electric (2005 - CEO Jeff lmmelt); Facebook;… about the measure of customer satisfaction by NPS, author does the research by NPS through three factors: Promoters, Passives and Detractors, followed by factors analyses, formula NPS and analyzing linear regression by SPSS 18 software to give useful information supporting decisions of Vietcombank executive board in enhancing customer services ii ACKNOWLEDGEMENT Firstly, I would like to express my sincere thanks to my supervisor… and …, who support me to complete this dissertation:“Assessment of customer satisfaction on services quality: The case of Joint Stock Commercial Bank for Foreign Trade of Vietnam” Secondly, I would like to send mythanks to my friends, the board and all staffs of Vietcombank Operation Center in giving me encouragement through the time I this work Moreover, I also appreciate the incentive of my staffs in VCC center, purchasing management department has been using NPS to help me complete research questions and achieve today’s result Finally, I want to express my profound appreciation to all the members of my family, who stay by my side, support me so I can my best this dissertation Thank you very much! Ha Noi, March, 2018 iii TABLE OF CONTENTS CHAPTER I INTRODUCTION 1.Background of study Research motivation Research objectives and scope: Research method Research aim Structure of dissertation: CHAPTER II LITERRATURE REVIEW Notion of customer Assessment system based on NPS index “Net Promoter Score” belong to Bain & Company Measurement methods Satisfaction 5.1 Resolving the complaints of clients under BLAST model 11 5.2 “Three changes” principle 12 SERVQUAL model (Parasuraman, 1988) 12 CHAPTER III RESEARCH METHODOLOGY 16 General method 16 Research Process 17 Research model with Quality Assessment System based on NPS 18 Collect samples and data 19 4.1 Sample 20 4.2 Pilot study 21 4.3 Data collection process 21 Reliability of the measurement 23 The validity of the study 23 CHAPTER IV RESULT OF DATA ANALYSIS 24 Sample description 24 Descriptive statistics 27 Exploratory Factor Analysis (EFA) 28 Correlation Coefficient between Variables: 32 5.Vietcombank’s NPS: 33 CHAPTER V CONCLUSION 36 Results achieved 36 iv Influence of research Model 36 Limitations of the Model 37 Recommendations 37 LIST OF REFERENCES 38 APPENDIX 42 Appendix 1: Survey Questionnaire 42 APPENDIX 2: EFA FACTOR ANALYSIS 43 APPENDIX 3: CORRELATION COEFFICIENTS 45 v LIST OF ABBREVIATIONS Vietcombank/VCB: JSC Bank for Foreign Trade of Vietnam NPS: Net Promoter Score VCC: Vietcombank customer center IQ: Promoters indicator variabales SQ: Passives observational variables SVQ: Detractors observational variables US: Satisfactions observational variables vi LIST OF TABLES, CHARTS AND FIGURES Table 1.1: The assessment criterions following SERVQUAL model 13 Table 1.2: The factors affecting to the customer satisfaction with the service quality 18 Table 1.3 Survey detail about customers using Vietcombank Services……………….24 Table 1.4: Descriptive Statistics 27 Table 1.5: KMO and Bartlett's Test 29 Table 1.6: Rotated Component Matrixa 30 Table 1.7: Correlation between Variables 32 Diagram 1.1 The relationship between Customer’s value and NPS…………………… Diagram 1.2: The hierarchy of demand Maslow Diagram 1.3 Research Process 17 Diagram 1.4 Research Model 18 Diagram 1.5 Gender of Customers 25 Diagram 1.6 Age of Customers 26 Diagram 1.7 The time using the service at Vietcombank Operation Center 26 vii CHAPTER I INTRODUCTION Background of study Vietcombank is one of the four biggest commercial bank in Viet Nam With more than 50 years development, Vietcombank continuously is the best commercial bank (Vietcombank com.vn) Besides main factors making the success of Vietcombank such as products and services, people (human resource) plays crucial roles when people has been creating the image and success of Vietcombank Recent years, when noticing the importance of of customer satisfaction toward customer service quality, Vietcombank managers always take care and apply customer satisfaction system on management and improving product quality, human resource by NPS, that can provide sufficiently the higher demand of customer Information about positive and negative feedbacks of customer when using products and service will help bank’s staff accumulate experiences as well as change the way to have daily business meetings Therefore, they will build customer belief, which are likely to influence their friends Moreover, while looking at NPS results, Vietcombank manager will have appropriate change and in reality to fit with customer requirement in different time by organizing workshops about professional sales skills, seminars about sharing experience, which will push customer service in higher standard The measure system of customer satisfaction by Net Promoter Score (NPS) has been applying as a part of enterprise management method at Vietcombank, which has been testing in Exchange, one of the biggest branches of Vietcombank However, decisions about system’s efficiency (with NPS) still base on inflexible requirements in comparison with reality As a result, it is necessary to set up adjustment among factors flexibility and sufficiently in this research Furthermore, satisfaction in using best services reveals in satisfaction by criteria, customer feedbacks by months updated from system by VCC and email VCB will decide the sufficiency from branch to individual staff having unwanted situations From this, the board and managers will have comments and mark scores directly for branches and share it on whole system so branches could have lessons and know the ways to solve similar problems In addition, system based on NPS index refers methods for branches to consider and apply flexibility on same transactions in the future Research motivation With more than 10 million customer using products, services and 15.000 staffs in nearly 100 branches over Vietnam (1:666b scale), the importance of customer satisfaction is undeniable Especially,whenVietcombank is building an official enterprise culture to increase activities results and the competitive advantages to competitors system by NPS has been building and applying in trade floor since 2015 partly satisfy basic requirements in customer satisfaction and products quality in the biggest branch Having many intake feedbacks parts about product quality, that can summarize detail situations happening to each product and service, then transferring to each branch to staffs in different position by email@vietcombank.com.vn with detail news The using system by NPS has brought great values in enhancing the quality of products and services to meet the demand of customers in every transaction at Vietcombank, however, no specific research could verify that efficiency As a result, before using over whole system, Vietcombank need to have a detail comprehensive research to evaluate, that specializes in customer satisfaction toward system by NPS at trading floor Research objectives and scope: Research objective is the level of customer satisfaction about bank’s service quality and influential elements to the satisfaction through NPS By collecting information from interviewees with questionnaires will determine the satisfaction of customer to each kind of service As a result, the statistic analysis about influence of each factor to customer satisfaction will be considered and determined clearly by NPS Research’s limited scope in a big branch of Vietcombank is Vietcombank Operation Center The quetionaires will be sent to customer in research scope and are using services of trading floor Topic also illustrate about customer satisfaction when using services by NPS to evaluate service quality offered by Vietcombank Research method Look at the factor load factor at the factor matrix (component matrix) it is difficult for us to know which variables explain what factor So, we need to rotate the factors The rotation method chosen here is the Varimax procedure, which rotates the angular aspect of the factors to minimize the number of variables that have large coefficients at the same factors, thus enhancing the ability to explain the factors After rotation, we will also remove variables whose factor load factor is less than 0.5 Only,the variables with a load factor greater than 0.5 are used to explain a particular factor By the factorial analysis method, the main factors with rotational Varimax were used to reduce the number of variables in Table 4.4.2, showing that all 17 observed variables were significant because the total covariance deviation was> 50% From that, these factors are significant for high reliability Through the above steps can confirm the factors that qualify to carry out the next steps Correlation Coefficient between Variables: Table1.7.Correlation between Variables IQ Pearson Correlation IQ Sig (2-tailed) N 182 Pearson Correlation SQ SQ 331** 474** 000 000 000 182 182 182 476** 584** 000 000 182 182 494** 182 Pearson Correlation SVQ Sig (2-tailed) 000 N 182 Pearson Correlation US US 473** Sig (2-tailed) N SVQ 182 Sig (2-tailed) N 182 ** Correlation is significant at the 0.01 level (2-tailed) 32 (Variables with ** are significantly correlated, if positive coefficients are in the same direction and vice versa, the higher the correlation the stronger Appendix4.Correlation Coefficient between Variables) The results show that the IQ and SQ variables are Sig values = 0.000 0.3, indicating that the two variables are positively correlated IQ variables and SVQ variables are also valid for Sig = 0.000