The influence of relationship marketing to credit card customers loyalty at ho chi minh branch shinhan viet nam

MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY HO CHI MINH CITY LE NGOC TRAM ANH THE INFLUENCE OF RELATIONSHIP MARKETING TO CREDIT CARD CUSTOMERS’ LOYALTY AT HO CHI MINH BRANCH SHINHAN VIET NAM MAJOR: FINANCE AND BANKING MAJOR NUMBER: 7340201 GRADUATION THESIS HO CHI MINH - 2018 MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY HO CHI MINH CITY LE NGOC TRAM ANH THE INFLUENCE OF RELATIONSHIP MARKETING TO CREDIT CARD CUSTOMERS’ LOYALTY AT HO CHI MINH BRANCH SHINHAN VIET NAM MAJOR: FINANCE AND BANKING MAJOR NUMBER: 7340201 GRADUATION THESIS SUPERVISOR: PhD TRAN KIM LONG HO CHI MINH - 2018 i ABSTRACT Author ANH, Tram Ngoc LE Title The influence of relationship marketing to credit card customers’ loyalty at Ho Chi Minh branch Shinhan Viet Nam Language English Instructor LONG, Kim TRAN Credit card products play an essential role in Shinhan Viet Nam’s business planning and profit and with the aim to gaining high qualify ANZ personal customers to pursue scope of becoming a top third bank in credit card field, Shinhan Viet Nam did an M&A with ANZ Viet Nam But after M&A happened, Shinhan bank, especially Ho Chi Minh branch, witnessed a significant increase in the number of withdraw customers, and an internal survey had been done with the results pointed out the decrease in loyalty was the main reason for this tendency Because the backbone of credit card products is a relationship between customers and the bank then relationship marketing had been chosen as a solution for this trend due to the aim of this is building, maintaining and enhancing a relationship with final purpose to get the loyalty of customers The aim of this study was to examine the influence of relationship marketing to the loyalty of credit card customers to see as if this is the key to solve problems of Ho Chi Minh branch and Shinhan Bank The study chose five underpinnings of relationship marketing including trust, commitment, communication, conflict handling and empathy as independent variables with loyalty as a dependent variable, by using questionnaire survey, Cronbach’s Alpha, Exploratory Factor Analysis and Regression test, this study gave a conclusion that all five underpinnings have a positive relationship with loyalty Additionally, trust, commitment and conflict handling were three underpinnings had strong affection with loyalty while communication and empathy had a weak one This confirmed that relationship marketing was one of the tools to solve loyalty problem at Ho Chi Minh branch, Shinhan Viet Nam Keywords: Relationship marketing, Credit Card, Loyalty, Ho Chi Minh branch Shinhan bank ii DECLARATION OF AUTHENCITY Full name: Le Ngoc Tram Anh Student class: HQ02-GE01, faculty of Banking and Finance, Banking University of Ho Chi Minh city Student code: 030630140298 I declare that this thesis has been composed solely by myself and that it has not been submitted, in whole or in part, in any previous application for a degree Except where states otherwise by reference or acknowledgment, the work presented is entirely my own Ho Chi Minh City, December 12th 2018 Author Le Ngoc Tram Anh iii ACKNOWLEDGEMENTS Frist of all, I would like to thank all lectures at Banking University of Ho Chi Minh City Your enthusiastic and devoted instruction helped me to improve not only my major knowledge but also soft skills which helps me a lot in doing the study Especially, my supervisor Mr Tram Kim Long who enthusiastically instructed and encouraged me to complete this graduation study, without you I have no direction and effort to persuade this study Last but not least, I want to express my grateful to my parents who always love unconditionaly and believe in my choices, my younger brother, friends who beside me at my up and down mood, Jerry Nguyen who teaches me a lot about dealing with stress problems Ho Chi Minh City, December 12th 2018 Author Le Ngoc Tram Anh iv TABLE OF CONTENT LIST OF TABLES AND FIGURES vii LIST OF ACRONYMS vi CHAPTER 1: INTRODUCTION 1.1 Research background 1.2 Research objectives 1.3 Research questions 1.4 Subject and Scope of research 1.4.1 Subject of study 1.4.2 Scope of the study 1.5 Analytical methods 1.6 Contributions of research 1.7 Study structure CHAPTER 2: LITERATURE REVIEW 2.1 Literature review 2.1.1 Customer Loyalty 2.1.2 Relationship marketing 2.2.3 Previous Research CHAPTER 3: DATA AND METHODOLOGY 15 3.1 Theoretical Model 15 3.2 Data description 18 3.3 Data analysis methods 20 3.3.1 Cronbach’s Alpha 20 3.3.2 Exploratory factor analysis (EFA) 20 3.3.3 Regression 21 v 3.4 Study process 21 3.5 Constructs variables 22 CHAPTER 4: STUDY RESULTS 27 4.1 Sample Description 27 4.2 Scale preliminary verification 29 4.2.1 Cronbach’s Alpha results 29 4.2.2 EFA results 32 4.3 Adjusted Model 36 4.4 Regression 38 4.4.1 Pearson correlation 38 4.4.2 Regression 39 4.4.3 Verify presumptions of the model 40 4.4.4 Fitness of the model 45 4.4.5 Result discussion 47 4.5 Relationship between geographic variable with loyalty 49 4.5.1 The relationship between Genre and Married Status with Loyalty 49 4.5.2 The relationship between Age, Study and Income level with Loyalty 51 CHAPTER 5: CONCLUSION, RECOMMENDATIONS AND LIMITATIONS 53 5.1 Conclusion and Recommendations 53 5.1.1 Group of strong affection 53 5.1.2 Group of weak affection 57 5.1.3 Other recommendation 58 5.2 Limitations and suggestion for further researches 58 REFERENCES 61 vi LIST OF ACRONYMS Abbreviations Full meaning EFA Exploratory Factor Analysis HCM Ho Chi Minh VND Viet Nam Dong SPSS Statistical package for Social Sciences RM Relationship Marketing KMO Kaiser-Meyer-Olkin LO Loyalty TR Trust CO Commitment COM Communication CF Conflict handling EM Empathy vii LIST OF TABLES AND FIGURES Name Page Figure 2.1: First Reference Theoretical framework 10 Figure 2.2: Second Reference Theoretical framework 11 Figure 2.3: Third Reference Theoretical framework 12 Figure 2.4: Fourth Reference Theoretical framework 13 Figure 3.1: Suggestion Theoretical framework 15 Figure 3.2: Study process 22 Table 4.1: Descriptive Statistics 28 Table 4.1.1: Reality of HCM’s branch 29 Table 4.2: Cronbach’s alpha results summarize 30 Table 4.3: RM’s First Rotated Component Matrixa test result 33 Table 4.4: RM’s Second Rotated Component Matrixa result 34 Table 4.5: RM’s KMO and Bartlett's Test result 35 Table 4.6: LO’s KMO and Bartlett's Test result 35 Table 4.7: LO’s Total Variance Explained result 35 Table 4.8: LO’s Component Matrixa result 36 Table 4.9: Adjusted scale 36 Table 4.10: Correlations test result 38 Table 4.11: Coefficientsa test result 41 Table 4.12: Model Summaryb 45 Table 4.13: Coefficientsa results 46 Table 4.14: Final hypothesis 47 Table 4.15: Relationship between Genre and Loyalty 50 Table 4.16: Males’ and Females’ loyalty 50 Table 4.17: Relationship between Married Status and Loyalty 51 viii LIST OF GRAPHS Graph 4.1: Scatterplot chart 41 Graph 4.2: Histogram chart 42 Graph 4.3: Normal P-P Plot of Regression standardized residual chart 43 79 ( 학생 수: 30630140298), 당신은 “ 호치민신한 은행 우열 t에 지점에 대한 고객 충성도 카드에 관계 마케팅의 관계 에 대한 논문을 완료 남 " Để hồn thành khóa luận, em cần Anh/Chị dành chút thời gian giúp em việc trả lời câu hỏi, phát biểu To complete the study, I really need your help in answering these questions below / 에세이를 완성하기 위해, 나는 아래에 주어진 질문에 대답함으로써 나를 돕기 위해 시간을 할애해야한다 Xin chân thành cám ơn Anh/Chị! Sincerely thank you! / 진심으로 감사드립니다! Hướng dẫn trả lời: Answering Guide / 응답 가이드: Với nội dung đây, Anh/Chị vui lòng cho ý kiến cách khoanh trịn số dòng Những số thể mức độ Anh/Chị đồng ý hay không đồng ý với phát biểu theo quy ước sau: For each of the following, please comment your opinion by circling a number in each line These numbers indicate the extent to which you agree or disagree with the following statement/ 다음 각 경우에 각 줄에 숫자를 돌면서 의견을 말하십시오 이 숫자는 귀하가 다음 진술에 동의하거나 동의하지 않는 범위를 나타냅니다: (Mỗi câu hỏi Anh/Chị vui lòng chọn MỘT câu trả lời với ý nhất) (For each question, please choose ONE answer that is most appropriate for you) (각 질문에 대해 가장 적합한 답변을 하나 선택하십시오) Hồn tồn Khơng đồng ý/ Trung lập không đồng ý/ Disagree/ Strongly disagree/ 절대 Neutral/ 중립 Đồng ý Agree/ 확인 Rất đồng ý 80 동의하지 동의하지 Strongly Agree 마라 않는다 /강력하게 동의하다 TẤT CÁ CÁC CÂU HỎI ĐỀU ĐẶT DƯỚI TÌNH HUỐNG SẢN PHẨM THẺ CHI NHÁNH HỒ CHÍ MINH THUỘC NGÂN HÀNG SHINHAN VIỆT NAM ALL THE NEXT FOLLOWING QUESTIONS ARE ABOUT CREDIT CARD PRODUCT AT HO CHI MINH BRANCH SHINHAN VIET NAM / 모든 질문은 HO CHI MINH 지점 신한 은행에 카드 케이스 제품의 제목 아래에 넣어 VIET NAM PHẦN I PART I/ 부 I Phần/ Part/ 파트 A: NIỀM TIN/ TRUST/ 믿음 Mức độ đồng ý/ Degree of consent/ 동의 정도 Anh/Chị tin chi nhánh chi nhánh uy tín 5 The branch is a trustworthy branch/호치민 지점은 신뢰할 수있는 지점 Anh/Chị tin chi nhánh nỗ lực để đem đến sản phẩm, dịch vụ thẻ chất lượng tốt You believe that the branch always did their best to bring quality product to customers/호치민 지점은 항상 고객에게 자격있는 제품을 제공하기 위해 최선을 다합니다 81 Anh/Chị có mối quan hệ tốt với chi nhánh từ trước 5 đến You have a good relationship with the branch/호치민 지점과 좋은 관계가 있습니다 Chi nhánh bảo mật thông tin Anh/Chị The branch always security customers’ information/호치민 지점 항상 보안 고객의 정보 Phần/ Part/파트 B: SỰ CAM KẾT/ Mức độ đồng ý/ Degree of COMMITMENT/ 파트 Chi nhánh ln thực cam kết, consent/ 동의 정도 5 thỏa thuận với Anh/Chị The branch always carries out the commitments and agreements with you/은행은 항상 당신 과 약속 및 계약 을 이행 합니다 Anh/Chị quen với nhân viên phong cách phục vụ chi nhánh You are familiar with the staff and style of service of the branch/귀하는 호치민 지점의 직원 및 서비스 스타일에 대해 잘 알고 있습니다 Anh/Chị khơng thay đổi ngân hàng tốn nhiều nỗ lực việc tìm kiếm định sử dụng ngân hàng khác You don’t change banks due to time consuming in finding and switching process/프로세스를 찾거나 82 전환하는 데 시간이 많이 들기 때문에 은행을 변경하지 마십시오 Anh/Chị không thay đổi ngân hàng đối tác Anh/Chị sử dụng dịch vụ You don’t change banks because your partners are also using the service here/그는의 파트너 은행 / 그녀는 또한 여기에 서비스를 사용하기 때문에 그 / 그녀는 변경되지 않습니다 Phần/ Part/파트 C: TRUYỀN THÔNG/ Mức độ đồng ý/ Degree of COMMUNICATION/통신 Anh/Chị thường xuyên chi nhánh cập nhật consent/ 동의 정도 5 thông tin sản phẩm, dịch vụ chương trình thẻ The branch usually updates information about products, services and card campaigns for you/신한 은행의 제품, 서비스 및 카드 정책에 대한 정보가 정기적으로 업데이트됩니다 Các kênh hỗ trợ khách hàng chi hoạt động hiệu dễ dàng tiếp cận The branch’s customer support channels are always efficient and easy to accesss/신한 은행의 고객 지원 채널 은 항상 효율적 이고 쉽게 접근 할 수 있습니다 83 Chi nhánh có tài liệu, tờ rơi giới thiệu dịch vụ thẻ 5 hút, nhiều thông tin hữu ích The branch has documents, brochures about card service are very attractive, useful/신한 은행은 카드 서비스에 관한 자료, 브로셔가 매우 매력적입니다 Sử dụng hình ảnh Park Hang Seo Lương Xuân Trường làm đại diện tạo nên mong muốn sử dụng sản phẩm thẻ Anh/Chị Using Park Hang Seo and Luong Xuan Truong as influencer make you want to use Shinhan’s credit card products/박항서와 Luong Xuan Truong을 영향력있는 사람으로 사용하면 신한의 신용 카드 제품을 사용하고 싶습니다 Phần/ Part/파트 D: GIẢI QUYẾT XUNG ĐỘT/ Mức độ đồng ý/ Degree of CONFLICT HANDLING/해결 방법 Chi nhánh giải khiếu nại Anh/Chị consent/ 동의 정도 5 cách thỏa đáng The branch satisfies your complaint/은행은 귀하의 불만을 만족시킵니다 Đường dây nóng chi nhánh giải vấn đề thẻ hoạt động 24/24 84 The branch’s hotline credit card issue available for 24/24/핫라인 신용 카드 문제는 24 / 24 Nhân viên chi nhánh giải khiếu nại, sai sót 5 hiệu từ lần đầu The branch’s employees solve complain, struggles effectively right at first time/직원들은 불평을 해결하고, 처음부터 바로 효과적으로 투쟁하며 Nhân viên chi nhánh sẵn sàng hỗ trợ, hướng dẫn Anh/Chị thủ tục pháp lý cần (công chứng, chứng thực…) The branch’s employees are always willing to assist, advise you on legal procedures when needed (notarization, authentication )/ 직원들은 항상 기꺼이 돕기를 원하며 필요한 경우 법적 절차에 대한 조언 (공증, 인증 ) Phần/ Part/파트 E: SỰ ĐỒNG CẢM/ Mức độ đồng ý/ Degree of EMPATHY/의식이있는 것 Chi nhánh thể quan tâm đến cá nhân Anh/Chị dịp đặc biệt (lễ, tết, sinh nhật…) The branch usually shows their eyes for details with you at your special occasions (lunar new year, consent/ 동의 정도 85 birthday….)/은행은 보통 특별한 경우 (음력설, 생일 ) Chi nhánh có sách ưu đãi, chương trình q 5 tặng cho đối tượng khách hàng The branch has special promotions programs, gifts for each group of customers/은행은 특별 프로모션 프로그램, 각 고객 그룹 별 선물 Thời gian hoạt động chi nhánh thuận tiện cho Anh/Chị The operation time of the branch is convenient for you/은행의 운영 시간은 당신에게 편리합니다 Nhân viên ý đến yêu cầu khách hàng Employees always pay attention to the requirements of each customer/직원들은 항상 각 고객의 요구 사항에주의를 기울입니다 Phần/ Part/파트 F: LÒNG TRUNG THÀNH/ Mức độ đồng ý/ Degree of LOYALTY/오래도록 Nhắc đến ngân hàng có sản phẩm thẻ tốt, Anh/Chị nghĩ đến ngân hàng Shinhan Referring to the bank with good credit card products, you think of Shinhan bank right consent/ 동의 정도 86 away/좋은 카드 상품을 가진 은행을 언급하면서, 당신은 첫 번째 신한 은행 Anh/ Chị giới thiệu tốt the credit Shinhan 5 cho người quen (bạn bè, đồng nghiệp, người thân…) You would introduce good things about credit card products of Shinhan your acquaintances/신한의 신용 카드 상품에 대해 좋은 점을 소개합니다 Anh/Chị tiếp tục sử dụng thẻ Credit Shinhan ngân hàng khác thuận tiện, nhiều khuyến You would keep using Shinhan credit card products despite promotions, convenient of other banks/판촉에도 불구하고 신한 신용 카드 상품을 계속 사용하고 다른 은행 Anh/Chị cho khơng dễ dàng thay đổi tin tưởng với chi nhánh Hồ Chí Minh ngân hàng Shinhan You know that you will not easily change your trust with the Ho Chi Minh City Shinhan branch/호치민시 신한 지점과의 신뢰를 쉽게 바꾸지 못할 것이라는 것을 알고 있습니다 PHẦN II PART II/ 부 II Anh/Chị vui lòng cho biết đơi nét thân (Khoanh trịn vào số phù hợp) 87 Would you please tell me something about yourself? (Circle the appropriate number)/ 너 자신에 대해 뭔가 말해 줄래? (해당 번호에 동그라미) Giới tính 1- Nam/ Male/남성 2- Nữ/ Female/여자 Genre/성별 Độ tuổi 1- 18-30 2- 31-45 3- 46-55 4- Trên 55 Age/나이 Trình học độ 1- Phổ thông/ vấn/ Highschool/ Caođẳng/ Universit học/ 고등학교 College/ y/ Higher 대학 education/ Study Trung cấp, 칼리지 level/교육 2- Đai học/ 3- Trên đại 대학원 Tình trạng 1- Độc thân/ Single/싱글 2- Có gia đình/ Married/기혼 nhân Married Status/ 결혼 상태 nhập 1- 6.000.000 – hàng tháng/ 15.000.000 30.000.000 45.000.000 위에45.000.000 VND VND VND Thu Income/수 입 2- 15.000.000- 3- 30.000.000- 4- Trên/ Over/ VND 88 Appendix Trust Reliability Statistics Cronbach's N of Items Alpha 727 Commitment Reliability Statistics Cronbach's N of Items Alpha 833 Communication Reliability Statistics Cronbach's N of Items Alpha 806 Conflict Handling Reliability Statistics Cronbach's N of Items Alpha 803 Empathy Reliability Statistics Cronbach's N of Items Alpha 772 Loyalty 89 Reliability Statistics Cronbach's N of Items Alpha 818 Appendix 2a Trust Item-Total Statistics Scale Mean if Scale Variance Item Deleted if Item Deleted Corrected Item- Cronbach's Total Alpha if Item Correlation Deleted TR1 8.82 5.900 485 683 TR2 8.66 5.718 482 686 TR3 8.66 5.526 559 640 TR4 8.79 5.624 539 652 Commitment Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Alpha if Item Correlation Deleted CO1 10.93 5.795 615 811 CO2 10.98 5.320 679 782 CO3 11.19 4.844 712 767 CO4 11.24 5.244 652 795 Communication The first time Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Alpha if Item Correlation Deleted COM1 10.91 3.910 613 554 COM2 10.91 4.069 612 560 COM3 10.92 4.147 577 582 COM4 10.87 5.274 200 806 90 The second time Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Alpha if Item Correlation Deleted COM1 7.24 2.469 663 725 COM2 7.24 2.635 648 740 COM3 7.25 2.611 650 738 Conflict Handling Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Alpha if Item Correlation Deleted CF1 11.10 4.722 623 751 CF2 11.07 5.096 564 778 CF3 11.38 4.772 592 766 CF4 11.37 4.522 692 716 Empathy Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Alpha if Item Correlation Deleted EM1 10.91 4.446 566 723 EM2 10.75 5.010 656 697 EM3 10.89 4.370 582 714 EM4 10.95 4.294 541 741 91 Loyalty Item-Total Statistics Scale Mean if Scale Variance Corrected Item- Cronbach's Item Deleted if Item Deleted Total Alpha if Item Correlation Deleted LO1 9.93 2.838 642 770 LO2 9.83 2.714 608 786 LO3 9.88 2.775 624 777 LO4 9.87 2.681 683 749 Appendix 2b Total Variance Explained Compo Initial Eigenvalues Extraction Sums of Squared Rotation Sums of Squared Loadings Loadings nent Total % of Cumulati Variance ve % Total % of Cumulati Variance ve % Total % of Cumulati Variance ve % 4.583 25.463 25.463 4.583 25.463 25.463 2.699 14.995 14.995 2.415 13.415 38.877 2.415 13.415 38.877 2.566 14.254 29.249 1.852 10.291 49.168 1.852 10.291 49.168 2.276 12.647 41.896 1.455 8.081 57.248 1.455 8.081 57.248 2.191 12.172 54.068 1.315 7.306 64.555 1.315 7.306 64.555 1.888 10.486 64.555 741 4.117 68.672 679 3.772 72.444 657 3.651 76.095 584 3.243 79.338 10 538 2.990 82.329 11 517 2.873 85.201 12 488 2.710 87.912 13 443 2.463 90.375 14 400 2.223 92.598 15 381 2.114 94.712 16 339 1.883 96.595 17 324 1.802 98.397 18 288 1.603 100.000 Extraction Method: Principal Component Analysis 92 Appendix Test of Homogeneity of Variances LO Levene Statistic df1 2.778 df2 Sig 206 042 Robust Tests of Equality of Means LO Statistica Welch df1 2.035 a Asymptotically F distributed df2 14.108 Sig .155 93 Appendix Study Level Test of Homogeneity of Variances LO Levene Statistic df1 df2 Sig .757a 206 470 a Groups with only one case are ignored in computing the test of homogeneity of variance for LO ANOVA LO Sum of Squares Between Groups df Mean Square F 858 286 Within Groups 59.381 206 288 Total 60.239 209 Sig .993 397 Income level Test of Homogeneity of Variances LO Levene Statistic df1 321 df2 Sig 206 810 ANOVA LO Sum of Squares Between Groups df Mean Square 2.009 670 Within Groups 58.231 206 283 Total 60.239 209 F 2.369 Sig .072 ... loyalty of credit card customers Overall, thanks to the statements of the study ? ?The influence of Relationship Marketing to Credit Card Customers? ?? Loyalty at Ho Chi Minh branch, Shinhan Bank”, the. .. OF EDUCATION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY HO CHI MINH CITY LE NGOC TRAM ANH THE INFLUENCE OF RELATIONSHIP MARKETING TO CREDIT CARD CUSTOMERS? ?? LOYALTY AT HO CHI MINH BRANCH. .. examine the influence of relationship marketing to the loyalty of credit card customers to see as if this is the key to solve problems of Ho Chi Minh branch and Shinhan Bank The study chose five