Chapter I. THE PROBLEM AND ITS BACKGROUND
V. SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
The aim of this chapter is to check if the research questions were answered; the objective was met and if the study has contributions. Therefore, the chapter begins with a conclusion, then to the implication, followed by limitations. A suggestion for future research ends the chapter.
Summary of findings
The objective of this study was to examine the relationship between customer satisfaction and service quality with respect to service quality dimensions in the banking industry, especially for Ho Chi Minh City Agribank. The unique design of this research gave strange but interesting results because of the grouped and ungrouped presentation of the data. The results appeared to be different in the two ways of analysis. Thus, whether the research questions were answered or the objective was met depend on the out comes of the study.
The research results show that most of customer expectations are for accurate and on time services of the bank and following by the price and rate competitiveness and various services portfolio. In addition, customers also expect the available business networks with talented and professional staff to ensure the most effective business with customers. This is useful information for establishing and developing a marketing strategy, which the bank needs to pay concerns.
However, for the research model, from the starting at 8 factors with 28 variables, which are processed through the reliability analysis and EFA, it is adjusted to six factors with 23 variables, which shows the level of customer satisfaction with different levels with a small fluctuation.
All the dissertation presented in five chapter is suitable and well documentated which shows up all the needed analysis, findings, contributions and limitations.
Conclusion
Customer satisfaction is vital and target for the bank. Along with the increasingly strong competition in the business environment, understanding customer needs, factors influencing to customer satisfaction becomes more necessary and therefore the study helps bank run more effective marketing activities as well as complete development policyies.
More specifically, if the bank gives higher customer satisfaction, the bank will win the ability of service continuity, and customer loyalty, the introduction to other partners…All above will contribute to increased sales, market share, profitability, and position in the market.
With the study "Customer satisfaction in the banking industry (Agribank) in Ho Chi Minh City", the research objectives show through descriptive statistics, reliability analysis, EFA analysis, and ANOVA with the policy development review and other relations in the research model. First, the most things that customers want are the accurate and on-time service delivery and the price competitiveness. The second factor is the service quality (courtesy, convenience, reliability, and tangibles), service price, and corporate image. Third, level of the customer satisfaction in Agribank Ho Chi Minh City is very high on all three aspects of the service quality, the ability to meet demands, and the service continuity with the bank.
In addition, customer satisfaction is the result of many factors’ combination.
Creating the customer satisfaction needs a long-term strategy and implementation.
With the ever-changing business environment, the application of research results needs to be flexible and adjust accordingly.
Agribank is one of the largest bank in Vietnam, it is easy to understand that customer satisfaction is high (ranged from satisfied to very satisfied). The customer satisfaction measurement is based on the overall service quality and the continuity to use bank services. As its order, the overall service quality is the first condition to bring customer satisfaction, the next is to meet customer needs, they will be more satisfied and continue to use the bank service. All three scales correlate closely together to decide the level of customer satisfaction.
In addition, research results are from reliable input data for marketing policies and help the bank have better understand customer needs, customer reviews on the bank service quality to improve the operation quality and enhance customer satisfaction more effectively.
Recommendations
Research of customer satisfaction is very important, and proposals for the customer satisfaction become more meaningful and important. The proposal to improve the customer satisfaction must concentrate on consolidating achievements and enhance the value-added service provision. However, the bank should pay attention to the solutions’ uniformity and consistency presented in the following aspects:
Orienting the development strategy
As stated above on the important of customer service and customer satisfaction, Ho Chi Minh City Agribank should build up a strategy on customer satisfaction orientation. That is the sustainable development of the bank.
With the establishment of many large financial institutions in Vietnt Nam, the strategy has proved more significant. However, for suitability with each stage of development, the strategy can be adjusted accordingly to meet customer needs.
The bank should establish customer service strategy. This is not a easy work and need a right strategy from the start up. The bank should have not only a general development strategy but also a special customer service strategy.
Improving the service quality
The bank should constantly modernize banking technology. The technology expertise of the staff using that technology will play a decisive role in the service quality for customers. Technology brings quick strides and remarkable ability to meet customer expectations. The customer trusts and loyalty depend greatly on modern technology as well as added-values for customers by the application of that technology (for example of e-banking application)
Furthermore bank offices and branches should be beautifully decorated, harmonious color scheme, easy to identify and there are differences in comparison with other banks. Bank office needs to have logo and slogan or statement of commitment on the service quality. The uniformed staff also makes customers feel more friendly and comfortable when doing business with the bank.
The bank also needs to have regular communication with customers. Exchange of information with customers plays a particularly important role in understanding and meeting customer expectations. Information exchange can be carried out in various forms, in parallel or integrated with others such as customer conferences; advertising programs and the product promotion; polls; survey customer needs; service hotline establishment, etc. …iIn which, the bank can transmit the service information to
customers, and collect feedback recovery as well as customer complaints concerning to bank activities. The bank also needs to store customer data and information for easy and convenient contacts / interactions with customers.
Besides, the bank should simplify procedures and develop the operation processes to reduce the waiting time and promote the new services as derivatives, guarantees and financial lease etc... to meet needs of the increasing financial risk management of the customers.
Upgrading the staff professional competence
In the human resource management, the bank staff are also internal customers. The bad or good service quality for the external customers depends much on the internal customer. Therefore, the bank should have human resource development policies, which are based on the training – development to the staff.
As known, staff competence and conduct are very important in the customer satisfaction. Therefore, the bank should continuously improve the quality of human resources and strategic development of high quality human resources. Because, as the principle, human being is the decisive factor. To ensure quality of service, it must first obtain and improve the staff of service delivery through the practical professional domestic and oversea training courses. Staff need to have highly specialized knowledge, equipping with soft skills for communication and sales. Therefore, the bank should have a training plan to improve staff expertise focusing on the application of modern technology. It requires to open regularly training courses with practical requirements combining skill trainings to improve customer satisfaction. For the key positions in the bank, research and development services need to be trained abroad.
At the same time, the banker needs a good service attitude, polite, professional, and enthusiastic to meet the needs of customers. Banks should convert the concept works in the field of currency trading to operate in the financial services sector to shape the behavior and attitude of positive customer service staff.
In addition, the bank should continue to recruit talented staff to ensure the most efficient quality and reward and recognize efforts contributed by employees. The bank makes the fair and equal compensation policy to staff to gain the staff satisfaction and make customer be satisfied with the bank services.
Assuring the price competitiveness
In today's competitive environment, with the establishment of many local and foreign banks, customers have more choices and they become more sensitive to the price factor than before. Therefore, the bank needs to ensure price competitiveness to attract new customers and retain existing clients by conducting a survey about interest rates and services with other banks in the same area to review the price and interest rate policies. Besides, the bank should update the market information as well as price deals to strengthen customer trusts on the bank’s price competitiveness.
More of that, promoting the flexibility of the interest rate policy as preferable price application to customers with high deposits or reducing transaction costs for customers with large balances and the bank's traditional customers should be done.
When doing business with customers, the bank should calculate the overall gains on transactions of customers with bank credit interest earned from cost of payment activities, foreign currency trade, the average capital raising balance etc.... to determine the competitive rates for each type of customer.
Building a professional working environment
The bank should build up a friendly and professional working environment with customers because the service quality depends very much on working environment. A friendly, ease, and enthusiastic environment will create excitement and a sense of satisfaction to every customer every time.
Each of staff must aware of customer concentration culture in the staff awareness and the bank also establish cooperation and assistance among departments.
Staff are promoting problem – solving skills to rresolve complaints. Customer complaints must be considered a signal to banks to constantly improve service quality. Many bank employees, even managers are worried, afraid or do not like customer complaints, after receiving the opinion of the complaint shall not determine or willing to solve. This is a wrong view, because in addition to having the opportunity to edit, process improvement services, the good complaint-resolving still provide opportunities for the bank to retain customers.
Developing the cooperation with financial institutions
One of the methods to increase the bank customer satisfaction is to develop the cooperation and to improve the competitive position and implement the strategy to become a multi-function financial corporation. Agribank Ho Chi Minh City should strengthen development cooperation and improve the competitive position not only in the country but also on the international market by taking advantage of financial and management skills in order to improve competitiveness and create conditions for the development of further cooperation. The bank may increase the capital from bond issuance of medium and long-term capital. In addition, the bank may attempt to increase financial capability through the focus and improve the operation quality,
initiative to create additional sources of capital by internal accumulation, retained earnings, funds risk reserve after deducting the annual risk /losses.
Strengthening the good image in customer concepts
As discussed and analyzed, keeping up and strengthening the good image to customers are very important for Agribank Ho Chi Minh City because it is a method to create customer satisfaction. There are many methods such as keeping up commitments to customers, promoting social and community contributions as the premier scholarship fundraising programs for charitable purposes, public funding projects. When doing the social and community activities, customers in particular and people in general think the bank to create a feeling of goodwill with the public, and this will definitely help polish the bank image, reinforce the brand's image. Not only for social activities but also for the social responsibility should be created to build up the bank image. More of that, enhancing customer relationships, ensuring the accurate and on-time delivery should be done.
In addition, the bank should develop sustainable development strategies and lead the service improvements to meet customer needs as the expected as in the above analysis.
Recommendations to Agribank Head Office
For achieving customers the highest satisfaction from customers, a long with own efforts of Agribank Ho Chi Minh City, the support of the Agribank Head Office is indispensable. The first is to fund the capital.
Raising and funding the capital are one of the important activities that make up the bank's capital. This can be seen as the dominant source of capital used for bank credit activities that can help the bank save input costs. Therefore, to increase deposits from
individuals and corporates, the Bank Head Office and branches needs to improve the quality and professional staff conduct when doing business with customers. More of that, the bank is also to increased added-value to customers such as office establishment in some key areas to serve customers out of their working time, a private desk to serve VIP customers.
On the basis of the technology platform, the bank focused sales skill training for staff to promote services and aggressive sales and marketing of new products and services. The bank also continue to promote the traditional service strengths to bring high revenue services such as domestic and international payment services and foreign currency trading, development of derivative products to customers.
The bank should also strengthen partnership with other financial institutions to create a wide payment network. The bank should improve the information technology systems of the whole system, ready to respond and provide modern banking services to customers.
Business network development should be concerned by the bank through the positive expand and develop new distribution channels (ATM networks, POS, Homebanking, internetbanking ...) etc) create added utility for customers and help customers to easily access to banking services.
In addition, the current trend of banks is a comprehensive customer satisfaction.
The main issue depends on human factors and the effectiveness of staff depends on the management quality. the The bank needs to improve management capacity and professional staff by providing ongoing training and development of qualified human resources, expertise to meet the requirements of integration and the ability to rub with the fierce competitive environment.
As known, banking operations contains many risks, so risk management in the governance is considered as the most important work. The bank needs to perform, arrange appropriate organizational model to ensure safety in risk management and improve the performance.
Implications and limitations Theoretical implications
Theoretically, the study has made a positive contribution on the determinants of customer satisfaction in the banking industry in Vietnam. The study is among the first to research into determinants of customer satisfaction in Vietnam banking industry. It provides empirical support that customer satisfaction in the industry could be significantly influenced by service quality, which is well support by other previous research in general.
Practical implications
This study has indicated that it is to the bank (Agribank Ho Chi Minh City) in understanding customers and identifying the bank position. As analyzed, the bank will understand which determinants/factors of customer satisfaction to remain and improve them in the future.
For the implications for Marketing Manager, as a Marketing Manager in the banking industry, it is pertinent that all the component s in a service quality programbe strictly followed and implemented effectively. Assurance, Reliability, Empathy, Tangibles and Customer Satisfaction are all equally important. Marketing Managers should not only focus on the bank’s objective of profits and gains, but must also look into the needs of the customers as well. As a matter of fact, the Marketing Manager should recommend extensive customer-relations training programs for all
the frontlines and tellers. In this way it would Agribank’s core competency in customer satisfaction. The result of this study has proven that research model is still the effective model to measure customer satisfaction. Managers from various banks should continuously measure and improve the level of customer satisfaction using the model in order to maintain competitive in the market place. Market perception and customer expectation can change rapidly from time to time, for example from long queue in the front desk last time till now the internet banking, perhaps there will be a new trend in the near future.
For the implications for Agribank Administration, this study is very useful for them because it may be a tool of management. In addition, this study is also considered as a reference for Agribank Head Office for the future planning and the development strategy application.
Limitations and recommendations for future research
The study has some limitations on the subject and scope of the study. The first is samples. Samples are selected by the convenience method. This is the least reliable form of non-probability sampling. Responsive customers are currently in transaction with the bank. Many of them are very familiar with the bank.
In addition, the subjects of study are the corporate customers; with the special nature of the service needs, the service quality measurement scales, and price perception in comparison with individual customers. Hence, the study results can not be applied uniformly to all customers. The scope of the study is limited to corporate customers of the Agribank in Ho Chi Minh City and this does not show up the overall assessment evaluation to other local customers and potential customers who do not use bank services.
Besides, the study is focusing on the seniority and number of customer transactions with the bank. Therefore, it is not finding out the customer satisfaction in relation to the business major, financial resources, ethnic and culture factors.
With the result, the study can be conducted with larger sample size, the broader scope of research and applications in the fields of services such as insurance, postal, education, consulting ... etc. which there is a close interaction between customers and high-contact services by the method of implementation of the study topic.
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