Factors influencing on the brand name of hd bank at bien hoa branch

MEIHO UNIVERSITY Graduate Institute of Business and Management MASTERS THESIS Factors Influencing on the Brand Name of HD Bank at Bien Hoa Branch In partial fulfillment of the requirements for the degree of Masters of Business Administration Advisor: Dr Chih-Shing Tau Graduate Student: Vu Minh Nguyet December, 2010 ACKNOWLEDGMENTS I gratefully acknowledge the assistance, support and encouragement of my instructor Ph.D Chih-Shing Tau, Associate Professor, Director of Information Management Department of Meiho University (MU, Taiwan) When I met him in Taiwan, he encouraged, motivated and assisted me a lot in the ways of searching materials, planning for this thesis Without his support, I could not complete this master's thesis under the requirements of Meiho University I would like to thank the staff of Marketing Department, PR Department of HD Bank who assisted me in understanding more about customer care service of HD Bank, having remarks, reviews of HD bank's marketing activities Finally, I would be remiss if I did not acknowledge Taiwanese and Vietnamese professors' imparting knowledge while I have been taking EMBA2 course This knowledge helped me a lot in the process of completing my master thesis I Factors Influencing on the Brand Name of HD Bank at Bien Hoa Branch ABSTRACT The word "brand" is increasingly important to businesses and familiar with customers Assets of the business are not only the value of land, machinery, plant, equipment etc., but also brand value which is the ideas and beliefs in the customers' mind about the products or services the company provides These days, banking operations in Vietnam are developing rapidly, which creates fierce competition among banks To exist in highly competitive market, banks have to create the difference in products, take part actively in the process building and developing the brand of bank because brand will bring the bank a lot of benefits such as customers' recognition, and loyalty, improving service's quality, expanding operating size, increasing reliability And HD bank is not exceptional The purpose of the research is to find the factors which highly influence on the bank's brand Quantitative model has been used to get this research purpose The result of this research shows that the bank's brand has relation to the following factors: the diversification of the bank's service, the customers' reliability to bank's service Keywords: Brand Loyalty, Brand Name, Customer Reconition, Customer’s Reliability, HD Bank, Service Quality II Factors Influencing on the Brand Name of HD Bank at Bien Hoa Branch Contents ACKNOWLEDGMENTS I ABSTRACT II Contents III Tables V Figures VI Chapter1 Introduction 1.1 Background and Motivation 1.2 Research Questions and Objectives 1.3 Scope and Research Method 1.3.1 Research scope 1.3.2 Research method 1.4 The Significant of the Study 1.5 The Overview of the Research Chapter2 Literature Review 2.1 The Definition of Brand Name 2.1.1 What is a brand 2.1.2 The types of brand 2.1.3 Brand equity 2.2 Brand in Banking Service Sector 2.2.1 Influence of brand on customers and bank 2.2.2 Some benefits of branding for the bank 2.2.3 Some factors making bank brand 11 Chapter Research Methodology 15 3.1 Research Process 15 3.2 Research Method 17 3.3 Question Design 17 3.3.1 Scale of product or service quality 18 III 3.3.2 Bank image scale 18 3.3.3 Bank prestige scale 19 3.3.4 Scale of customer service 20 3.4 Data Collection 20 3.5 Methods for Analysis 20 Chapter Research Results and Analysis 21 4.1 Descriptive Statistics 21 4.1.1 Descriptive statistics analysis 21 4.1.2 Measurement results of variables 22 4.2 Reliability and Validity of Variables 24 4.2.1 Reliability 25 4.2.2 Validity 28 4.3 Regression Analysis 30 Chapter Implications, Conclusions and Recommendations 31 5.1 Conclusion 31 5.2 Suggestion 33 5.3 Implication 33 References 34 Attachment 35 Attachment 38 IV Tables Table Benefits of Brand 11 Table Table of the Variables of Product or Service Quality 18 Table Bank Image Variables 19 Table The Bank Prestige Variables 19 Table Customer Service Variables 20 Table Descriptive Statistics Analysis 21 Table Descriptive Statistics of Variables 22 Table Cronbach Alpha of Quality Factors (1) 25 Table Cronbach Alpha of Quality Factors (2) 25 Table 10 Cronbach Alpha of Image Factors (1) 26 Table 11 Cronbach Alpha of Image Factors (2) 26 Table 12 Cronbach Alpha of Prestige Factors (1) 27 Table 13 Cronbach Alpha of Prestige Factors (2) 27 Table 14 Cronbach Alpha of Service Factors (1) 27 Table 15 Cronbach Alpha of Service Factors (2) 28 Table 16 Factor Analysis 28 Table 17 Regression Analysis 30 V Figures Figure Brand Equity Figure Reseach Process Diagram 16 Figure Slogan of HD Bank 32 VI Factos Influencing on the Brand Name of HD Bank at Bien Hoa Branch Chapter1 Introduction 1.1 Background and Motivation The brand of the bank is whatever left in the mind of customers after they used the provided service of the bank, and the brand brings a lot of benefits to the bank in the future and safety in the demand of the service of the bank But brand is rarely concerned, researched, built and developed by the bank unlike the brand of manufacturing firms with tangible products In the current integral economy, banks worldwide are concerned more with their brands, implementing the process of building and developing brands Nowadays, in the economy, brand is becoming more and more important to every business Brand is the first element creating the ability of recognizing, recalling, and differentiating products Housing Development Commercial Joint Stock Bank of HCM City operates in finance and banking field, which does businesses through service and trust so brand occupies a rather large portion in operating value of the bank I chose the brand field of HD bank to research with the following reasons: „ HD bank received the award "The Vietnam strong brand name in 2008" on March 29, 2009 It’s the influential award held by Viet Nam economic Times magazine and Directorate of Trading Promotion (Ministry of Industry and Commerce) to honor the businesses that got excellent achievements in business operations and stably developed their brand names „ HD bank officially received the merit "certificate of excellent for outstanding performance in international payments with straight-through" awarded by Standard Chartered Bank to honor the quality of international electronic payment operations of HD bank in 2008 After remove some variable, Cronbach Alpha of Quality Factors is 0.701 > 0.6 So variables in Table were acceptable and reliable Similar to this case, Table 10 and Table 11 show Cronbach Alpha of Image Factors, Table 12 and Table 13 show Cronbach Alpha of Prestige factors and Table 14 and Table 15 show Cronbach Alpha of Service Factors Table 10 Cronbach Alpha of Image Factors (1) Variable Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected ItemTotal Correlation Cronbach's Alpha if Item Deleted Image1 Image2 Image3 Image4 Image5 Image6 Image7 Cronbach Alpha 24.5022 5.546 643 716 24.3378 6.519 694 715 24.4711 6.143 722 703 24.5556 6.855 503 748 24.9244 7.043 252 812 24.4667 7.696 347 774 24.5556 7.114 476 754 776 Table 11 Cronbach Alpha of Image Factors (2) Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected ItemTotal Correlation Cronbach's Alpha if Item Deleted Image1 20.7911 4.389 554 802 Image2 20.6267 4.824 783 739 Image3 20.7600 4.817 661 761 Image4 20.8444 4.971 640 767 Image6 20.7556 5.873 429 810 Image7 Cronbach Alpha 20.8444 5.578 454 806 Variable 812 26 Table 12 Cronbach Alpha of Prestige Factors (1) Variable Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected ItemTotal Correlation Cronbach's Alpha if Item Deleted Prestige1 15.7378 2.230 450 357 Prestige2 15.2711 3.172 275 489 Prestige3 15.7067 2.351 380 416 Prestige4 15.3067 3.544 126 554 Prestige5 Cronbach Alpha 15.0267 3.062 254 499 531 Table 13 Cronbach Alpha of Prestige Factors (2) Variable Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected ItemTotal Correlation Cronbach's Alpha if Item Deleted Prestige1 7.5467 1.329 421 499 Prestige2 7.5156 1.162 530 308 Prestige3 7.0800 1.994 328 622 Cronbach Alpha 604 Table 14 Cronbach Alpha of Service Factors (1) Variable Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected ItemTotal Correlation Cronbach's Alpha if Item Deleted Service1 19.6667 4.080 070 603 Service2 19.9378 3.398 555 383 Service3 19.7467 3.744 381 459 Service4 19.7422 2.871 397 430 Service5 20.0400 4.485 -.005 611 Service6 19.7111 3.483 470 415 Cronbach Alpha 540 27 Table 15 Cronbach Alpha of Service Factors (2) Variable Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected ItemTotal Correlation Cronbach's Alpha if Item Deleted Service2 12.1067 2.640 616 691 Service3 11.9156 2.631 642 681 Service4 11.9111 1.992 516 785 Service6 11.8800 2.606 595 698 Cronbach Alpha 765 4.2.2 Validity The researcher used Explore Factor Analysis (EFA) to compute factors EFA would be accepted when KMO value (Kaiser – Mayer – Olkin) is over 0.5 (Marija J.Norusis, 1993, p53), factor loadings less than 0.4 were omitted to improve clarity, eigenvalue is over and percentage of variance more than 50% (Gerbing & Anderson, 1988) Table 16 Factor Analysis Rotated Component Matrix(a) Variable HD bank promotions are very rich and diverse Service3 824 When arriving at HD bank, I never have to worry about parking Service6 779 HD Bank often has customer care programs Service2 754 I am always consulted well when needed Service4 692 Prestige2 575 HD Bank always ensures depositors the best interests HD Card has many facilities such as payment for goods, checking accounts, … 527 I can have reference on the HD bank website Quality8 855 I did not take a long time when trading at HD bank Quality7 793 Quality4 762 HD Bank staff are always enthusiastic and open- 28 562 Quality3 When transfering money, paying phone charges, booking to purchase airline tickets, I use the Ebanking card of HD Bank I am always impressed with the costumes of HD bank staff Image3 850 Image2 679 Variable hearted HD Bank has professional staff Image1 Slogan of HD Bank is simple and easy to remember Image6 795 I always feel warm and friendly as entering HD bank Image7 774 Image4 712 HD Bank has a very special, attentive customer service way In my opinion, HD bank is the most prestigious bank I have ever known When having transactions with bank, I always think of HD bank first .635 Prestige3 739 Prestige1 708 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Approx Chi-Square Bartlett's Test of Sphericity 668 2785.576 df 136 Sig .000 Determinant values are showed in table 16 It presents the result of factor analysis which indicates that all variables were constructively valid with associated items There are five factors (F1, F2, F3, F4, F5) with the formular: F1 = Mean (Service2, Service3, Service4, Service6, Prestige2) F2 = Mean (Quality3, Quality4, Quality7, Quality8) F3 = Mean (Image1, Image2, Image3) F4 = Mean (Image4, Image6, Image7) F5 = Mean (Prestige1, Prestige3) 29 4.3 Regression Analysis In this section, there are five independent variables (F1, F2, F3, F4, F5) and dependent variable is F (brandname) The result of regression analysis is showed in table 4-8 below Table 17 Regression Analysis Model Summary Model R R Square Adjusted R Square Std Error of the Estimate 887(a) 786 781 46764900 a Predictors: (Constant), F5, F3, F1, F2, F4 ANOVA(b) Model Sum of Squares Regression Mean Square F Sig 161.051 000(a) Standardized Coefficients t Sig Beta B Std Error -4.158 000 176.106 35.221 47.894 219 219 224.000 224 Residual Total df a Predictors: (Constant), F1, F2, F3, F4, F5 b Dependent Variable: F Coefficients(a) Unstandardized Coefficients Model B Std Error (Constant) -1.743 419 F1 -.306 100 -.113 -3.051 003 F2 -.176 064 -.115 -2.763 006 F3 -.250 080 -.140 -3.112 002 F4 -.069 101 -.031 -.685 004 F5 1.402 054 990 26.019 000 a Dependent Variable: F 30 Chapter Implications, Conclusions and Recommendations Chapter five present the conclusion to the research objectives, the suggestions and the limitations in this study 5.1 Conclusion This study is to research about brand name of the bank – factors influencing on the brand name of HD Bank, Bienhoa Branch From the concepts of the brand knowledgement of marketing and (or) banking, the researcher designed the questionaire and implement the survey The researcher used SPSS software version 15.0 to treatment data that was collected in the survey Some tools of SPSS software were used in chapter are descriptive statistivs, cronbach alpha, explore factor analysis (EFA) and regression analysis In the questionaire, the researcher was proposed twenty – six variables that could influence on the brand name of the bank Then, compact them to four items, they are qualiy of product and quality of servicing customers (quality variable), image of the bank (logo, slogan, etc.) (image variable), prestige of the bank (prestige variable), customer care program of the bank (service variable) Analysised results in chapter four shows that, factors that were used to analysis have the good cronbach alpha Explore factors Analysis – EFA showed that there are five factors influencing on the brand of the bank, they are: F1 factors including service2 variable, service3 variable, service4 variable, service6 variable and prestige2 variable (Table 16) It means customers always take care of the service, promotion program and enclosed services that the bank supplies to customers when they deal with the bank (example the parking pilot) Beside this, customers also take care of things that the bank ensures depositors the best interestd (prestige2) Therefore, when the bank supplies their services, the bank must ensure that they will supply the best service 31 F2 factors have quality3, quality4, quality7 and quality8 (Table 16) This result shows that factors also influencing on the brand name of the bank is the product of the bank Products of the bank (example HD Card, Ebanking Card) are suitable for the customers’ need They are some high-lighted products and influencing on the brand valid of the bank And the customers used products of the bank because of some reasons, such as the effective and information of product and safe time when registrative to use the products of the bank F3 factors including image1 variable, image2 variable and image3 variable (Table 16) F3 factor shows that staffs are the property of the bank Enthusiastis staffs are the cause of increase the brand valid of the bank They contact customers directly and work with customer everyday F4 factors including image4 variable, image6 variable and image7 variable (Table 16) The result of F4 factor shows that the next factors influencing on the brand name of the bank are slogan, enviroment and serve customer way of the bank So it need combine more things to make the image and the brand for the bank It is the combination of special enviroment, fresh air, and serve customer way The slogan is simple and easy to remember Figure Slogan of HD Bank F5 factors only including two variables, prestige1 and prestige3 (Table 16) Prestige of the bank is also influencing on the brand When the bank apreciate the prestige highly, the bank will have a position in the mind of the customers and they are increasing the brand valid And the result is customers always think of HD Bank first when having transaction with the bank 32 5.2 Suggestion Brand name has a very impotant valid to develop the bank and increase the competitive of the bank To increase the valid of the brand, the bank should invest factors influencing on the brand From the result of the above analysis, HD Bank should develop below factors in the future: The first factor is promotion, for example: customer care program The second factor is product, for example: HD Card and (or) Ebanking card The third factor is staff, for example: increase the skill and degree of human resourse The fourth factor is image, for example: logo, slogan, friendly enviroment and (or) fresh air The fifth factor is prestige, for example: the bank ensures that implement its commitment 5.3 Implication Due to limited knowledge and time, I can not avoid my mistakes in this study I realized that this study has limitations exist I hope to receive comments from everyone, specialy my advisor, to improve my thesis better and better 33 References I English Aaker, D.A (1991) Managing Brand Equity Jonhny K Johansson, Global Marketing (second edition) Mark Weiner (president of Delahaye), The Power of PR Philip Kotler, Marketing Management (eleventh edition) Pred R David, Strategic Management, Concepts and cases (ninth edition), p 274-282 II Vietnamese Báo nguyệt san HD Bank phát hành Dr Duong Hữu Hạnh, NXB Lao Động – Xã Hội, Quản Trị Marketing Thị Trường Toàn Cầu, p 361-359 Dr Trịnh Quốc Trung & Dr Trần Hoàng Mai, NXB Thống Kê, Marketing Ngân Hàng, p.372-381 Hoàng Trọng & Chu Nguyễn Mộng Ngọc, NXB Hồng Đức, Phân Tích Dữ Liệu với SPSS Trần Văn Chánh & Huỳnh Văn Thanh, NXB Thống Kê Những Nguyên Lý Tiếp Thị (principal of marketing), p.504-565 III Website www.hdbank.com www.prenhall.com 34 Attachment QUESTIONAIRE My name is Vu Minh Nguyet, is a student of EMBA2 class of Meiho University (MU, Taiwan) I am implementating the graduated thesis "Factors influencing the brand name of HD Bank at Bien Hoa Branch” I hope you could take minutes for my survey I appreciate the help yours and your answer sheet will be a source of reliable data for my graduated thesis The study only serves for academic purposes, non commercial I declare all information will be kept confidential Sinserely thank you! PART I: GENERAL DATA Your gender is † Male † Female Your age is † Under 18 † 18-29 † 30-39 † Over 40 Marital Status † Single † Married † Other Your average income per month (million VND/month) † Under † 5-10 † 10-20 † Over 20 How long have you used the service of HD Bank † Under year † 1-