Luận văn thạc sĩ tiếng anh customer satisfaction assessment for quality of customer service at thinh vuong commercial jointstock bank

NATIONAL ECONOMIC UNIVERSITY BUSINESS SCHOOL E BBA PROGRAM CUSTOMER SATISFACTION ASSESSMENT FOR QUALITY OF CUSTOMER SERVICE AT THINH VUONG COMMERCIAL JOINTSTOCK BANK Bachelor of Business Administratio[.]

NATIONAL ECONOMIC UNIVERSITY

BUSINESS SCHOOL E-BBA PROGRAM

CUSTOMER SATISFACTION ASSESSMENT FOR QUALITY OF CUSTOMER SERVICE AT THINH VUONG

COMMERCIAL JOINTSTOCK BANK

Bachelor of Business Administration in English (E-BBA) Thesis

Supervisor : Associate professor Ph.D Vu Thanh Hung

HANOI, 2019

This thesis has been completed at Vietnam Prosperity Joint Stock CommercialBank In order to get this essay, I would like to express my sincere and deepestgratitude to Vietnam Prosperity Commercial Joint Stock Bank Lang Ha , thebusiness department and especially to thank Mrs Minh Huyen for his directwholeheartedly guide and help me Thanks to these valuable guidance, duringthe process of deploying, researching and completing the assigned topic in thebest way

I would like to express my sincere thanks to my teachers have directly orindirectly taught to convey useful scientific knowledge to myself in the past yearsand especially my instructor Ph.D Vu Thanh Hung has made valuable comments,helping me to complete this research paper

I would like to send my deepest gratitude to the bank for creating all favorableconditions to help me collect data and necessary research materials related to thegraduation topic easily and conveniently

I would like to acknowledge the effort and valuable and enthusiasticcontributions of you who have contributed their ideas and helped me to develop,investigate and collect the data In order to achieve the success of this thesis, first

of all belong to the school and society, which has facilitated instruction and helpfor children, especially the encouragement and encouragement of the family'sdeep sympathy

Finally, I look forward to receiving the contributions, comments and criticismsfrom the teachers and all readers

TABLE OF CONTENTS

ACKNOWLEDGEMENT 1

ABBREVIATIONS 5

LIST OF MODEL 6

LIST OF TABLE 7

EXECUTIVE SUMMARY 8

CHAPTER 1 INTRODUCTION 9

1.1 Rationale 9

1.2 Research objective 10

1.3 Research question 10

1.4 Research methodology 10

1.5 Research scope 11

1.6 Report structure 11

CHAPTER 2: THEORICAL BACKGROUND ON CUSTOMER SATISFACTION TOWARD SERVICE QUALITY OF VPBANK AND RESEARCH MODEL OF CUSTOMER CARE SERVICE 12

2.1 Service, service quality and customer care 12

2.1.1 Service 12

2.1.2 Service quality 13

2.1.3 Customer care 14

2.2 Customer satisfaction 18

2.2.1 Defination of customer satisfaction 18

2.2.2 Factor affect customer satisfaction 19

2.3 The relationship between quality of service and customer satisfaction 20

2.4 Some previous model of facrtor affecting customer satisfaction 20

2.4.1 Gronroos model 20

2.4.2 Fingure of antecedents and mediator model 22

2.4.3 Servqual model 22

2.4.4 Customer satisfaction index model 23

2.5 Proposed research framework of factor effecting customer satisfaction 24

2.6 Scale of quality customer service according to the SERVQUAL model 26

CHAPTER CONCLUSION 29

CHAPTER 3: CUSTOMER SATISFACTION AT VPBANK 30

3.1 VPBank Overview 30

3.1.1 Formation and development history 30

3.1.2 Network system 33

3.2 Overview about VPBank Langha 35

3.2.1 Field of activity 35

3.2.2 Main product 36

3.2.3 Business situation 37

3.2.4 Business segment 39

3.2.5 Company structure 42

3.2.6 Personnel structure 43

3.2.7 SWOT analysis 44

3.3 Customer satisfaction assessment on VPBank’s service 47

3.3.1 Sample description 47

3.3.2 Evaluate the scale by Cronbach Alpha coefficient analysis method 55

3.3.3 Evaluate scale by EFA discovery analysis method 59

3.3.4 Testing the scale set by regression analysis 63

3.4 Current status of customer care at VPBank 68

3.4.1 General policy on customer care at VPBank 68

3.4.2 Particular processes and activities 69

3.4.3 Activities of organization 72

3.4.4 Influent factors 74

3.5 Strength and weakness in customer care policies 75

3.5.1 Strength 75

3.5.2 Weakness 75

3.5.3 Cause of weakness 76

Chapter conclusion 76

CHAPTER 4: SOLUTION TO ENHANCE CUSTOMER SATISFACTION FOR VPBANK CUSTOMER CARE SERVICE AT LANG HA 77

4.1 Development orientation of VPBank Lang Ha 77

4.2 Solution to enhance quality of customer care of VPBank Lang Ha 77

4.2.1 Solution to enhance competence of employee 78

4.2.2 Solution to enhance employee motivation 80

4.2.3 Investment in facilities solution 82

4.2.4 Enhancing technology solution 83

Chapter conclusion 86

CONCLUSION 87

REFERENCE 88

Appendix 1 90

Appendix 2: SPSS results 93

EFA Exploratory Factor AnalysisKMO Kaiser – Meyer – OlkinVIF Variance inflation factorSPSS Statistical Package for the Social SciencesSig Significance

VPBank Vietnam Prosperity Commercial Joint Stock Bank

LIST OF MODEL

Model 2.1: Service quality model by Lassar & ctg(2000) 16

Model 2.2: Gronroos Model 21

Model 2.3: Antecedents Model of Service Quality 22

Model 2.4: Parasuraman et al Model 23

Model 2.5: VCSI theory model 24

Model 2.6: Proposed research model 26

Model 3.1: Company structure 42

LIST OF FIGURE

Figure 3.2: Age of respondents 48

Figure 3.3: Occupation of respondents 49

Figure 3.4: income of repondents 50

LIST OF TABLE

Table 2.1: scale of quality customer service according to SERVQUAl model 27

Table 2.2 Scale of customer satisfaction according to Lassar & Ctg (2000) 28

Table 3.1 Mobilization situation of VPBank Lang Ha branch 37

Table 3.2 Lending situation of VPBank Lang Ha Branch 38

Table 3.3 Business result of VPBank Lang Ha 38

Table 3.4 personnel structure of VPBank Lang Ha 43

Table 3.5: Descriptive statistic 50

Table 3.6: Descriptive Statistics 52

Table 3.7: Frequency of dependent variable Q1 53

Table 3.8: Frequency of dependent variable Q2 53

Table 3.9: Frequency of dependent variable Q3 54

Table 3.10: Cronbach alpha coefficient of customer service scale at the counter under SERVQUAL model 56

Table 3.11: Cronbach alpha coefficient of customer service scale at the counter under SERVQUAL model for responsibility variable 57

Table 3.12: Cronbach alpha coefficient of customer service scale at the counter under SERVQUAL model for empathy variable 58

Table 3.13: Cronbach alpha coefficient of customer service scale at the counter under SERVQUAL model for tangibility variable 58

Table 3.14 Cronbach alpha coefficient of the scale component reflects customer care service 59

Table 3.15: KMO and Bartlett's Test 60

Table 3.16: Rotated Component Matrixa 61

Table 3.17: KMO and Bartlett's Test 62

Table 3.18: Factor analysis of EFA of 3 sub-variables in the scale reflects the Bank's customer care service 62

Table 3.19: Correlations 64

Table 3.20 Assumption of regression model 65

Table 3.21: Model Summaryb 65

Table 3.22: ANOVAa 65

Table 3.23: Coefficientsa 66

Table 3.24: gift giving activities of Vpbank 71

EXECUTIVE SUMMARY

The globalization trend of the world economy has impacted significantly on thecurrent level of competition, not only competing within a country but alsoexpanding to neighboring areas and the world More and more domestic andforeign companies can provide the same products and services Attractingcustomers is vital for the existence of the business

The purpose of this thesis is to study customer satisfaction with service qualitycomponents in SERVQUAL model at Vietnam Prosperity Commercial JointStock Bank Lang Ha branch

There are many articles on this topic in the world and also in Vietnam but theauthor wants to clarify this and especially with the prosperous Vietnamese jointstock commercial bank This thesis addresses 3 main issues: pointing out thecurrent situation of customer care in VPBank, finding out factors affectingcustomer care status here, which factors affect most from that and solutions toimprove service quality here

By using quantitative research using questionnaire surveys, research shows theinternal problems related to the quality of customer care and their satisfaction Byreferring to previous research models, the author presents a model consisting offour independent variables that strongly affect customer satisfaction:responsibility, reliability, empathy and tangibility Quantitative research methodsare used in the thesis by investigating and processing data such as descriptivestatistics, scale test, factor analysis, correlation analysis and regression Softwaresupports processing is SPSS software 25.0

The questionnaire was designed with 27 questions, of which 24 questionsanswered the factors affecting customer satisfaction, the remaining 3 questionsreflected the quality of the bank's service The number of responses used in thestudy after eliminating unsatisfactory answers is 165

Currently, VPBank is expanding its network continuously, so employees need to

be continuously trained to provide the best quality customer service Customercare policies of VPBank are not enough to ensure that customers feel satisfiedand loyal to the bank, so the research has pointed out the most important factors

to improve the quality of such services which is empathy and tangibility Fromthere, the author gives some solutions to improve these two things The first is toimprove the quality of employees, so that employees understand and empathizewith customers more Next is to improve facilities and improve technology sothat customers are always served by the most advanced means, creating apleasant and convenient feeling for customers

CHAPTER 1 INTRODUCTION

1.1 Rationale

The competitive situation in the banking sector is increasingly strong and fierce.With the participation of many types of credit institutions such as financialcompanies, non-bank financial institutions, savings funds, insurance companies The degree of competition among banks more aggressive with the participation

of foreign banks, foreign financial institutions that have many financialresources, technology, professional level One of the biggest challenges withtoday's banking system is its competitiveness With the opening of the marketand the development of science and technology, in the field of banking has beenthe fierce competition between joint stock commercial banks, state banks andforeign banks to provide services on Vietnam financial market

In a fierce competitive environment, customers are the key to the survival of thebank Banks that have a strategy to attract new customers, attract the attentionand loyalty of customers, the bank will develop sustainably How to bring thebest customer satisfaction is the most important issue that banks are trying toimplement In addition, for retail banking, retail banking occupies an importantposition in the bank's business In the retail banking development process, thebank focused not only on high-income individuals but also on the middle-incomesegments This orientation has made the battle in the retail market more and morefierce Therefore, in order to successfully compete in the retail market, banksneed to focus on improving the quality of their services, and research to findsolutions to improve service quality is essential

In addition, customer satisfaction will influence the creation of the system Loyalcustomers are essential to maintaining regular activities Bank nor does any bankguarantee that loyal customers will survive long or throughout Each customer isconsidered "spiritual child" This means that the bank must consider maintainingthe relationship, taking care of the customer more so that they will be loyal.Thus, improving service quality, improving customer satisfaction willcontributing to increase competitiveness and improve business performance.Topic "Customer Satisfaction Assessment for Quality of Customer Service atThinh Vuong Commercial Joint Stock Bank" was carried out some solutions forenhancing quality service of this bank

What is the impact of service quality on customer service at VPBank

What are the suggestion and solution for improving the service quality ofVPBank

Group discussions (10 people including transactors, relationshipmanagers, managers and branch managers) to develop the initial scale andquestionnaire From the preliminary questionnaire, interviews wereconducted with 10 clients to adjust the wording of the questionnaire to becomprehensible and appropriate for the formal research process to ensurethat customers understood the questions and ideas correctly The answer isnot duplicated, but also a preliminary evaluation of the scale has beendesigned and adjusted accordingly

The purpose of qualitative research is to reassess existing factors in themodel and to explore other factors that may have an impact on customersatisfaction on VPBank products and services, taking advantage of theopportunity to interview experts in the banking sector to revise theresearch model and develop tools for collecting primary data In addition,the author makes use of the observation method of organization, serviceoperation, interviews with branch leaders and other branch leaders in thesame bank to find solutions to overcome the shortcomings

 Quantitative research methods were conducted through face-to-faceinterviews Questionnaires were designed based on the adjusted scale frompreliminary research results to data collection Samples are chosenaccording to convenient method with sample size n =100.

The formal study was conducted by quantitative research Face-to-faceinterviews and interviews via the Internet are used to collect informationfrom customers at the Bank's branches in Hanoi The collectedinformation will be processed by SPSS software The scale after Cronbachalpha reliability and EFA exploratory factor analysis, multiple regressionanalyzes were used to test the model

1.5 Research scope

 Research subject

Under the topic of Analysis and Customer Satisfaction Assessment onVPBank's customer care service, the main subjects are the customers whoare using the services of VPBank Vietnam Commercial Joint Stock Bank

at Lang Ha branch

 Research scope

The topic was researched at Prosperity Bank on the basis of collectinginformation from banks and survey forms when customers came to useproducts and services at the branch

Scope of research content: The main focus of the study was to determinethe factors affecting the satisfaction and analyze the influence of thesefactors on the satisfaction of customers when using products and services

of individual customers at the bank Vietnam Prosperity Joint StockCommercial

1.6 Report structure

Chaper 1 : Introduction

Chapter 2: theorical background on customer satisfaction toward service quality

of VPBank and research model of customer care service

Chapter 3: customer satisfaction at VPBank

Chapter 4: recommendation to improve service quality of VPBank

CHAPTER 2: THEORICAL BACKGROUND ON

CUSTOMER SATISFACTION TOWARD SERVICE QUALITY OF VPBANK AND RESEARCH MODEL OF

CUSTOMER CARE SERVICE

2.1 Service, service quality and customer care

2.1.1 Service

 Defination of service

In economics, services are understood as things that are similar to goodsbut are non-material "Service is any action and result that one party canprovide to the other and is essentially intangible and does not lead toownership of something." or not attached to a material product " Service

is different from goods because the service is activity benefit, the servicehas no shape, size, color so it is not visible For example, tourism services,medical services, education services Such activities bring benefits andthus satisfy the consumer's expectations The service is invisible, it can not

be measured and it is difficult to control the quality, the heterogeneitychanges according to customers, over time, can not be separated,especially the labor-intensive services high and can not be stocked

The full understanding of the definition of services, first of all thedefinition of P Kotler, will help service providers as well as customersclearly see the nature of the service, the responsibilities and interests ofthe parties in service exchange relationship

 Defination of banking service

Banking service is a collection of features created by the bank to satisfycertain needs and wants of customers in the financial market

Banking service products are made up of three levels:

One is the core service which meets the key customer needs, the corevalue that the bank sells to the customer, is the key value customers expectwhen using the service of the bank

The second is the tangible service, which is a specific part of bankingservices, which is the external manifestation of banking services, such asthe name, form, characteristics, symbol, condition of use This is the basisfor customers to recognize, distinguish, compare and choose betweenbanks

Third is a complementary service, which adds to the existing product,service or other benefit, in addition to the primary benefit of the customer.They make banking services more complete and satisfy and higherdemands and expectations of customers, differentiating them fromcompetitors.

2.1.2 Service quality

 Defination of service quality

Understanding the quality of service is the basis for the implementation ofmeasures to improve service quality of service providers Therefore,defining quality of service is not only important in setting developmentgoals but also orienting service providers to best promote their strengths.There are many different definitions of quality of service offered

According to Lewis and Booms, "Quality of service is a measure of howwell a service is delivered to the customer that matches the expectations ofthe customer." Creating a quality service is to meet customer expectations

in a consistent way "

Parasurman, Zeithaml, and Berry (1985, 1988) define: "Quality of service

is a measure of how well a service is delivered to the customer that bestfits the expectations of the customer A quality service means meeting thecustomer's expectations in a consistent way "

According to this definition, it can be understood that if A is theexpectation of the customer when using the service and B is the actualrecognition of the customer, the service quality is the difference of A and

B The greater the distance, the negative value the quality of service is notgood, customers will not be satisfied On the other hand, if the distance issmall or zero then the quality of service is considered to be excellent andexcellent, the customer will be satisfied with that service

Thus, through the definition of service quality, it is evident that the quality

of service is related to the expectations of customers and their perception

of service Therefore, quality of service is the factor that affects thecustomer satisfaction If the service provider delivers quality products andservices that meet their needs, then the supplier is initially making thecustomer happy Therefore, to improve customer satisfaction, serviceproviders must improve service quality If quality is improved but notbased on customer demand, then the customer will never be satisfied with

the service Therefore, when using the service, if the customer feel theservice is high quality they will be satisfied with that service On thecontrary, if customers feel that the service is of low quality, dissatisfactionwill arise.

 Defination of banking service quality

"Quality of service is the capacity of banking services provided by theBank and reflected in the level of satisfying the needs and expectations ofthe target customers" (Institute of Banking Sciences) Quality of service isperceived by the customer rather than by the Bank

Quality of service is the distance between the expectations and the actualfeel of customers when using products and services Determining the level

of service quality of an organization is reflected in the customer'sassessment of the product, process or delivery system that satisfiescustomer requirements in accordance with specified standards

Vietnamese banks have been consolidating and enhancing the quality oftheir services, using service quality as an effective tool to build up thefoundation and develop firmly and firmly Meeting the requirements andurgent requirements in the process of regional and world integration

2.1.3 Customer care

 Defination of customer care

The concept of customer care for each business customer is different Theterm customer care is often understood inadequately as a warm welcome

to customers of salespeople However, customer contact is only part of thecustomer care strategy There should be a broader understanding of themeaning of customer care, which is to create customer satisfaction, meetmore elusive needs, and develop an in-house customer care service Thecompany will certainly have a competitive advantage over its competitors

in providing customer care

In the most general sense, the team of Besiness Edge has pointed out:

"Customer care is all the work that needs to be done to satisfy the needsand expectations of customers, Customers in the way they would like toserve and do the things they need to keep their customers "

As such, customer care has a very broad content, aiming to makecustomers happy, and therefore not only will ensure the ability to developbut also improve the efficiency of business operations.

 Definition of banking customer care

Customer care services are understood as services provided by the bank tocustomers for banking services These may be services related to bankingproducts such as cash deposit, foreign exchange, money transfer orvisualization services related to facilities, identifiers branding as well asother factors about people, how to serve All can influence and affect theneeds and satisfaction of customers

Customer service can be considered the face of a bank Therefore,improving the quality of customer service will be essential in the fiercecompetition environment today Customer service is considered a directand effective marketing channel A bank that recognizes this importanceand exploits it appropriately, has policy or written interest in it, canimprove the quality of its services to the bank

 Indicators reflect the quality of customer care services of the bank

As well as other products and services provided in the market, certaincriteria need to be met to assess the quality of customer care services.According to Lassar & ctg (2000) 's research on service quality, we usethree criteria: level of satisfaction with customer care services of the bank

in use, the willingness to introduce the services of a bank to other userswhen asked, the commitment to continue using the services the bank isusing, to reflect on customer care of VPBank

Model 2.1: Service quality model by Lassar & ctg(2000)

The most important determinant is the satisfaction of the customer or thesatisfaction of customer service As the quality of service oriented towardscustomers, the quality of service means meeting the expectations of customers,satisfying the needs of customers When services for a good customer, highquality service, the customer is satisfied not only the needs but also the spirit, thefeeling is satisfied, the customer will intend to stick and trust with the bank more.Not only that, according to consumer behavior studies, the scent of bank serviceswill be shared, word of mouth to other people who want to find a bank deal.Indicators are defined as the basis for solutions to develop bank counterservices

 Role of customer care

Along with other marketing activities, customer care also aims atsatisfying the needs of customers to achieve the goals of the businessincluding goals to increase sales, increase profits, growth targets or in thecompetitive environment It can be said that customer care in thebusiness sector in general and in the field of commerce in particular is acritical mission The role of customer care for the business is reflected inthe following aspects: First, customer care helps maintain existingcustomers and creates loyal customers for the business Clients aregenerally divided into two categories: existing customers and potentialcustomers To maintain existing customers means that old customers willcontinue to use their products and services, businesses often focus oncustomer care To attract potential customers, businesses have to invest inmarketing activities such as advertising, promotion According to

Satisfactionlevel withthe quality

of customerservice

Commit tocontinueusingservice ( loyalty)

Willing tointroduceService

Service quality

statistics, one customer who is not satisfied about the services of thecompany will share for twenty five another thing about that and the cost ofhaving a new customer would be five times the cost of keeping an oldcustomer Therefore, keeping current customers is easier and more costeffective than attracting a new customer Customer care is customerservice, bringing added benefits to customers This activity creates aninvisible bond to retain customers It also helps businesses create a loyalcustomer base This is a valuable asset for businesses today Having loyalcustomers, businesses will reduce the burden of competitive pressure.With loyal customers, revenue will maintain a certain revenue cycle, andcan increase revenue by introducing consumers to new products.

Secondly, good customer care is an effective advertising measure andcontributes to attracting potential customers Customer loyalty isconsiderably important to the business, but to survive and grow,businesses must always attract new customers This activity can beperformed indirectly through existing customers - a free but extremelyeffective advertising method Or implement promotional measures, meet,free consultation, organize product introduction conference to increaseunderstanding, awareness and create sympathy, trust for potentialcustomers

Thirdly, customer care helps businesses reduce the cost of doing business.Many costs will be significantly reduced if customer care is taken care of,such as the cost of finding new customers because the means to advertisefor the business is not as good as advertised by the customer, when thecustomer Satisfied with the service of the company, they will share withothers and now the business does not have to spend too much effort tointroduce, advertise for customers; or the cost of developing advertisingprograms, introducing products to customers; The cost to overcome theconsequences if the customer is not satisfied

Fourthly, customer care is an important competitive tool in today'sbusiness environment With the development of the economy, competition

in the market is becoming more acute More and more products andservices are being added to the market with similar features, quality andprices that confuse customers before making a choice Choosing the pricetool to gain control of the market has become obsolete because the pricefactor producer has a dramatic impact on sales and output, thus affecting

profitability If the price competition becomes unhealthy then the businesswill be in a difficult situation At this point, customer care becomes a goodweapon, and if a business does well in customer care, that business willwin.

2.2 Customer satisfaction

2.2.1 Defination of customer satisfaction

There are many different concepts of customer satisfaction:

“Customer satisfaction is the state / perception of the customer to the serviceprovider after using the service” (Terrence Levesque and Gordon H.GMcDougall, 1966)

More specifically, customer satisfaction is the psychological response, thedifference between what customers perceive compared to their expectations(Oliver, 1999 and Zineldin, 2000) In view of this, Kotler (2000) also has thesame views as Oliver and they are divided into 3 levels

- Unsatisfied: when the level of customer perception is smaller thanexpected

- Satisfied: when the level of customer perception is expected

- above satisfied: when the level of customer perception is greater thanexpected

The outcome of the gap between service prospect and service feeling is theperception of service quality and satisfaction is also a differentiation of these twovalues When the gap between service prospect and service quality is narrowed to

0, it satisfies customer satisfaction Service quality is the cause of customersatisfaction

Satisfaction is a function of expectation, perception along with distance betweenperception and expectation (Oliver, 1980)

According to Philip Kotler (2007), customer satisfaction is the level of emotionalstate of a person derived from the comparison of results obtained from theconsumption of products and services with the expectations of customers.Satisfaction depends on the difference between the results received andexpectations

Jamal et al (2002) described customer satisfaction as the most satisfactoryresponse to customer expectations In addition, they claim the cognizance orattitudes of customers after manipulating a product or service is customersatisfaction

2.2.2 Factor affect customer satisfaction

 Human

The service is of an intangible character, integral and inferior quality.Because of these characteristics, people are important in the process ofproviding services to customers Especially, the service staff at thecounter, who directly provide products and services for customers, isconsidered the most important directly affect the quality of service Fromsecurity guards, consultants to agents have a direct impact on the quality

of service The influence is reflected in: the sense of responsibility,capacity as well as their behavior, friendliness

 Technology

Previously, almost banks have no modern technology to provide productsand services quickly and conveniently for customers, now in the marketeconomy trend, the development of information technology hasincreasingly boomed, enabling banks to perfect themselves in all aspects

of the quality of transaction services at the counter Processes of paymentorders, accounting of customer accounts, are processed automaticallythrough the software system, minimize risks, ensure the transaction is fastand science Thereby, the quality of the transaction service will beimproved

 Environment

The quality of customer service depends on the environment and thesurrounding landscape including: Design, layout at the counter Table andchairs are conveniently arranged for guests The bank is attractive andeye-catching if the space is designed in the right color, there is anotherbrilliant vase, beautiful small decorations This will greatly affect thequality of the counter service at the counter line

 Other facror

As the opening hours are closed, services are available when customersare waiting for drinks, confectionery, newspapers or magazines .although they are just negligible factors that have a great impact tocustomer perception Understanding counter transactions will help toeliminate barriers between customers and employees

In addition to the micro factors mentioned above, the quality of customerservice is influenced by macro factors such as: Party's and State's views,policies, policies and regulations, regulations of the State Bank,

2.3 The relationship between quality of service and customer satisfaction

The connection between quality of service and customer pleasure has been thetopic of continuous disputation among researchers over the past 10 years Therehave been many researches on customer satisfaction on service quality Someessaylist debate that the quality of service and customer satisfaction areserendipitous so that these two notions can be used interchangeably

Notwithstanding, a lot of researches show that quality of service and customersatisfaction are two distinct notion Parasuraman et al (1993), advocated thatthere are some differences between quality of service and customer satisfaction,the main difference being the "cause and effect" Zeithalm and Bitner (2000)claim that customer satisfaction is affected by many factors such as productquality, service quality, price, situational elements, personal features

Service quality and satisfaction are two different but closely related notions inservice research (Parasuraman et al 1988) Previous studies have shown thatquality of service is the cause of satisfaction (Cronin and Taylor, 1992; Sprengand Taylor, 1996) The reason is that the quality of service is related to theservice delivery, and the satisfaction is measured only after using the service

In short, quality of service is a factor that greatly affects customer satisfaction Ifthe service provider gives customers quality products that satisfy their demand,then the network operator is initially making the customer happy Therefore, toimprove customer satisfaction, service providers must take a turn for the betterservice quality In other words,they are interrelated, in which the quality ofservice is what precedes and determines customer satisfaction The causalrelationship between these two factors is a crucial matter in most customersatisfaction studies If quality is improved but not based on customer demand,then the customer will never be satisfied with the service Therefore, when usingthe service, if the customer feel the service is high quality they will be satisfiedwith that service On the contrary, if customers feel that the service is of lowquality, dissatisfaction will arise

2.4 Some previous model of facrtor affecting customer satisfaction

2.4.1 Gronroos model

For the service industry, a comprehensive assessment of customer satisfaction forservice quality is extremely difficult due to the unique characteristics of theindustry To assess the quality of banking services, many researchers have

also suggested two areas of service quality, technical quality and functionalquality Technical quality refers to what is served and the quality of the functionthat speaks to them is served.

Model 2.2: Gronroos Model

In this model, the quality of service is assessed by comparing the value thatcustomers expect before using the service and the value that the customerreceives when using the service

Research Issues: How technical quality and functional quality affect servicedelivery and how customers perceive those factors

To measure service quality, Gronroos offers three criteria: technical quality,functional quality and image

What is the technical description of the service provided and the quality that thecustomer receives from the service

Quality describes how the service is provided or how the customer receivesquality results

Image is a very important factor, built on the technical quality and functionalquality of the service, in addition to other factors such as communication, pricingpolicy, PR

2.4.2 Fingure of antecedents and mediator model

This is a model that can be considered comprehensive in terms of quality ofservice In addition to providing a deeper understanding of service qualityconcepts, the model considers the antecedents, intermediates, and outcomes ofservice quality as factors that are considered prerequisites better quality ofservice and the relationship between quality of service with customer satisfactionand customer behavior intentions

What role does buying behavior and acquisition intent have in customer

appraisals of service quality and satisfaction? What is the premise of customer satisfaction when it is related to the premise of service quality?

Model 2.3: Antecedents Model of Service Quality

2.4.3 Servqual model

Parasuraman et al (1985) argue that "service quality is the distance between theexpectations of customers and the perceptions they have when using the service."Servqual focuses on measuring service quality by comparing customerexpectations for quality of service and quality of service after service use.Parasuraman & Ctg (1985) has introduced a five-gap model and five qualityservice components:

Distance 1: Distance between the perception of the company and the expectations

of the customer with the expectations of the customer

Distance 2: The gap between the company's perceptions of customer expectationsand the quality of service

Distance 3: The gap between the company's perceptions of customer expectationsand the quality of service.

Distance 4: The distance between the quality of service provided and the quality

of service communicated to the customer

Distance 5: Distance between customer service received and customerexpectations of service

Model 2.4: Parasuraman et al Model

2.4.4 Customer satisfaction index model

CSI is a customer satisfaction model that includes cause-effect variables: brandimage, expected quality, perceived quality, customer satisfaction, and loyalty.Customer satisfaction is based on the relationship between the causal variableand the model result Usually CSI has four initial variables: brand image,expected quality, perceived quality, perceived value and then customersatisfaction will create loyalty (if customer satisfied) or may be a complaint (ifthe customer is not satisfied) That means: customer satisfaction can lead to twoextremes of feeling for a customer that is satisfied with the quality of the

product / service and tends to be loyal to the brand or brand or There are manydissatisfied products / services that lead to "negative" behaviors with the brand.VCSI Model - Customer Satisfaction Index Vietnam is certainly not out of thestandard rules In order to make good use of the factors affecting the model, thestudy proposes a VCSI model with seven variables.

The causal variables of the model are: Brand image, Expected quality, Perceivedquality, Perceived value, Customer satisfaction (central factor), Complaints, intothe customer

The difference between VCSI and other CSI models is the difference between thetwo For each country, each socio-economic characteristic will determine howthe variables are related, and of course the VCSI model will also haverelationships between the variables, on the basis of The accumulation ofsuccessful experiences of some of the leading models and features of theVietnamese economy The VCSI theory model is set up as follows:

Model 2.5: VCSI theory model

Source: Le  Van Huy – Nguyen Th H ị a My 2014

2.5 Proposed research framework of factor effecting customer satisfaction

Based on the study of previous research, the satisfaction of customer isdetermined by some basic factors: Visibility, Reliability, Reactivity, andEmpathy

Tangibility: Represented by the material conditions and means used by serviceproviders to provide services to customers.

Reliability: Refers to the fact that the service provider is delivering the service aspromised, in the same way that customer information is received, in times whenthe customer has received the same quality of service Reliability is also reflected

in the knowledge of employees about the products and services that businessesprovide

Responsibility: Reflect the sense of responsibility of the service provider to thecustomer, be ready to provide services promptly, taking care of customer, toovercome the negligence in the service quickly and efficiently

Empathy: Demonstrate how the service provider understands the customer,whether it is interested in the customer's wants and needs, whether small or not.Thus, the quality of VPBank's customer service is based on the SERVQUALmodel of four components: reliability, responsiveness, empathy and tangiblemeans Accordingly, the model of researching the quality of customer careservices of SERVQUAL bank is proposed as follow:

Model 2.6: Proposed research model

Source: Author’s design

2.6 Scale of quality customer service according to the SERVQUAL model

There are two types of scales used in the questionnaire: the nominal scale forcollecting the subject information and the Likert scale to assess the degree ofacceptance of the criteria for assessing the quality of care of the Bank.Meanwhile using the Liker scale from 1 to 5 (with 1: Absolutely disagree to 5:Absolutely agree) to measure customer satisfaction ratings on customer service

of VPBank’s headquarter

Information on SERVQUAL expectations and SERVQUAL service perceptions,each consisting of 24 clauses, measures 24 variables in four aspects: tangibility,reliability, responsiveness, empathy These 24 variables were identified based onstudies using both in the world and Vietnam as Emin & Gregory (1992) using 24variables to measure and verify the SERVQUAL scale, Pham & Bui (2010) 24variables were used, in which the customer satisfaction scale of customer service

at VPBank headquarter based on SERVQUAL model including 24 observations

Loyalty

VoluntaryintroductionSatisfaction level

to measure the four components of satisfaction of customers about customer careservices, specifically.

Table 2.1: scale of quality customer service according to SERVQUAl model.

Critertia

1 When VPBank promises to do something at a

certain time, the bank do it correctly

R1

2 When customer get trouble, VPBank expresses

sincere concern in solving problems

R2

3 VPBank has implemented the right service for the

first time

R3

4 VPBank provides the right service at the time the

bank promises to perform?

13 VPBank has cutting-edge facilities T1

14 The facilities of VPBank look attractive and

convenient

T2

15 The staff of VPBank has a neat and polite uniform T3

16 VPBank's brochures related to the service are T4

designed beautifully with plentiful information

17 VPBank’s staffs are polite, welcome to implement

transaction with customers

19 VPBank expresses concern to customers E1

20 VPBank has employees who help customer solve

problem anytime

E2

21 VPBank's staff understands your special needs E3

22 VPBank pay special attention to your most interests E4

23 VPBank has convenient transaction time E5

24 Customers are always consulted the most suitable

product and service

E6

Source: Author’s design

The information reflects client satisfaction on customer care services inheritedfrom the Lassar & ctg (2000) research, with three measured variables:

Table 2.2 Scale of customer satisfaction according to Lassar & Ctg (2000)

1 Satisfaction with the quality of customer service Q1

2 The willingness to introduce services to others when

asked

Q2

3 Commitment to continue using the service Q3

Source: author’s design

The size of the sample should be as large as possible but the minimum samplesize should be ensured In the analysis of the EFA factor, 5 observation variablesfor a measurement variable and the sample size should be less than 100 So with

22 observations, the minimum sample size is 22 x 5 = 110

The sample was selected randomly from the list of regular customers to thecounter at the VPBank headquarter and selected 180 clients

CHAPTER CONCLUSION

Chapter 2 of the thesis deals with the theoretical bases related to service, quality

of service, customer care of the bank The bank's services are more and morediversified, and banks are increasingly interested in satisfying their customers Inaddition, chapter 1 of the thesis also offers some models of customer satisfactionmeasurement in which the SERVQUAL Service Quality Model is a model thathas long been used around the world and is very useful to evaluate servicequality The content presented in Chapter 1 will be the theoretical foundation formeasuring customer satisfaction in the quality of banking services That is themain content of chapter 3

CHAPTER 3: CUSTOMER SATISFACTION AT VPBANK

3.1 VPBank Overview

3.1.1 Formation and development history

Thinh Vuong Commercial Joint Stock Bank (VPBank) was established on12/8/1993 After nearly 25 years of operation, VPBank has developed its network

to 219 transaction offices with a staff of nearly 24,000 staff By 2017, thechartered capital of VPBank center will increase to VND 15,706 billion

VPBank is step by step asserting the credibility of a dynamic bank withstable financial capacity and accountability to the community In 2017, VPBank'sfive-year journey (2012-2017), with its brilliant achievements in terms of scaleand profit, made VPBank one of the leading commercial joint stock banks inVietnam

In particular, 2017 is a historic landmark of the bank as nearly 1.5 billionshares are officially listed on the HOSE, attracting great attention from domesticand international investors

The remarkable growth of VPBank is demonstrated by the expansion of itsnetwork of branches and transaction offices throughout the country and thediversification of sales and distribution channels

In addition, in the direction of "Customer Focus", the transaction pointshave been completely changed in terms of appearance, model and servicefacilities The products and services of VPBank are always improved andcombined with more facilities to increase the benefits for customers Allcontributed to satisfy the current customers and attract more new customers,Expand VPBank's customer base in both size and time with fast speed

The bank is always the market leader in applying advanced informationtechnology in products, services and operating systems Together with theestablishment of a strong and effective corporate culture, core human resourcemanagement systems have been successfully developed and implemented atVPBank In addition, the Bank has gradually developed an independent,centralized and specialized risk management system that meets internationalstandards and is aligned with the Bank's business strategy In addition toimplementing the best international practices in corporate governance, VPBankcontinuously improves its organizational structure in a transparent andtransparent corporate governance policy

With continuous efforts, VPBank's brand name has become stronger andstronger through many prestigious awards In particular, VPBank has received 20national and international awards in 2017, showing VPBank's impressive growth

in terms of brand value

VPBank is ranked as one of the four banks with the highest brand value and

is one of the 22 most valuable brands in Vietnam in 2017 by Brand Finance, aleading brand valuation consulting firm

In addition, prestigious international organizations have selected VPBankamong the few Asian banks to award prizes for credit institutions, such as "BestBank in Vietnam for Businesses Small & Medium Business in 2017 "by AsiaMoney, Asian Banking & Finance and three VPBank awards at" Best SME Bank

in 2017 "," Best for Small and Medium Businesses "and" Best Credit Products ofthe Year " The Asian Banker also awarded VPBank three prizes, including "BestDigital Bank Solutions in Vietnam", "Best Bank for Credit Products in Vietnam"and " best in Asia "

Vission and mission of VPBank

VPBank is a multi-functional urban commercial bank, operating with themotto: customer benefits are above all, the interests of employees are concerned,the interests of shareholders are focused, contribute effectively the development

of the community For customers, VPBank fully satisfies the interests ofcustomers on the basis of providing customers with diversified and diversifiedproducts, services and competitive prices For staff, VPBank is interested in bothmaterial and spiritual life VPBank ensures a stable and highly competitiveincome in the labor market of banking and finance To ensure that employees areregularly raised to improve their professional skills, ensuring the development ofboth political and cultural rights For shareholders, VPBank is interested inraising the stock value, maintaining high annual dividends For the community,VPBank is committed to perform well the financial obligations to the statebudget, always paying attention to social work, charity to share difficulties of thecommunity

The vission is realized by a strategy of two main pliers:

 Organic growth is fierce, focusing on the individual, small and mediumentreprise segment, while exploiting opportunities in the corporate andconsumer segments

 Building solid foundation systems in terms of organization, personnel,technology, operations.

Backstopping on the above strategy is the corporate culture of VPBank,base on six core values:

 Focus on the customers

VPBank believes that with its vision and strategy, the bank will fulfill itsmission of bringing the highest benefit to its customers, paying attention to theinterests of employees and shareholders, building culture strong business, andcontribute effectively to the development of the community

VPBank's new brand with the motto "Action for Dreams", is built on thefollowing elements: Professional, Dedicated, Different, and Simple Looking tothe long-term vision, VPBank is determined to promote the image of a bank thatalways strives to serve customers with friendly attitude and speed fastest

VP Bank's new logo is Hoa Thinh Vuong, which is styled by a combination

of fine lines and smooth curve, showing the flexibility, friendliness and reliabilitythat VPBank wishes to bring to customers The shape of the emblem is like thecherished hands, the desire to rise, the symbol of the upward development, thesolid support to ensure the growth and prosperity The symbol also reminds thehands together to build a community, a country of Prosperity Vietnam

The bright red of the petals expresses enthusiasm, enthusiasm, creativity,prosperity and luck, as well as the sense of responsibility for society and thecommunity in each VPBank's activities

EmployeenumberSME $ hubs

 Branch network

Distribution channel and branch network of VPBank spread throughout thecountry With such a strong network, VPBank has the advantage of reaching allpotential customers, making it one of the three largest retail banks in terms ofretail sales This also makes the brand identity better when customers across the

country known VPBank With 216 transaction points in 38 provinces across thecountry, customers will be more convenient in dealing and working with banks.

3.2 Overview about VPBank Langha

VPBank started its credit operations at Lang Ha from April 19, 2004.VPBank Lang Ha branch is part of the plan to expand the branch network ofVPBank joint stock commercial bank in Hanoi in particular and the northernprovinces in general The main activities of VPBank Lang Ha branch include:mobilizing short, medium and long-term capital of organizations and residents inthe form of term deposits, demand deposits, deposit certificates and capitalinvestment and development, borrowing from other credit institutions andreceiving entrusted credit funds from foreign financial institutions Providingshort, medium and long-term loans to organizations and individuals, providingpayment services between customers, foreign currency trading, gold and silver,international payment and other banking services in the term of relations withforeign countries when permitted by the State Bank

Discounting bills, bonds and valuable papers

Contributing capital, joint ventures and buying shares according to thecurrent law

Providing payment services between customers

Trading foreign currencies, gold and silver

Mobilize capital from foreign countries and carry out banking relatedservices overseas when permitted by the State Bank

International settlement and implementation of other services related tointernational payment

Providing domestic and overseas remittance services in the form of specialremittance western Union.

3.2.2 Main product

Deposit products

Deposit products include deposit products with term deposits and demanddeposit products This product is a useful tool to help customers deal and managefinancial security, security and non-stop profit For term deposit products, termsfrom 1-36 months with monthly or final interest payment method

Vp supper products

Vp supper is a premium product that includes a package of services withinterest rates up to 6% / year: account, debit card, internet banking and SMSBanking

VP Business Products

VP Business is a package of VP business accounts, Internet Banking, SMSBanking, and VPBank's monthly payment service with interest rate up to 6% perannum

Online savings product

The online savings service applies to all individual customers who havepayment deposits and use the internet banking service of VPBank Instead ofgoing to the bank's transaction points like the traditional way, customers justneed to click the mouse can transfer money, query information on savingsaccounts online, the savings open at the counter; Prepare payment beforematurity, on time savings accounts through this service

Product VP couple

VP couple is only for customers who use VND as a currency to send andborrow at VpBank The product is suitable for business individuals, small andmedium enterprises

Smart account product

The Smart Account Deposit is a savings account that is linked directly toyour payment deposit account and smart utilities will meet your expectations

Source: Company report

From the table above, we see that the source of capital mobilization hascontinuously increased over the years, especially in the period of 2016-2017,from VND 1,929,746 million in 2014 to VND 2,412,824 million in 2017 inwhich the capital mobilized from the population is still very large Deposits fromeconomic organizations are really an important source of the Bank because Lang

Ha is the place where many companies, especially showrooms, are located Withcapital mobilization growing well, VPBank Lang Ha has focused on improvinghuman resources, products and services have been diversified and developedstrongly

Table 3.2 Lending situation of VPBank Lang Ha Branch

Short term 330000 370000 345000 584000 584000Long term

Source: company report

VPBank Lang Ha's customers are a stable system of individual customers,close business households operating in the fields of agriculture and businessproduction Especially taking advantage of regional nature advantages, VPBankLang Ha also surpassed other branches in automobile loan outstanding.According to the results, it shows that the lending situation of the branch alwaystends to increase and also increase strongly in 2016 - 2017, it can be seen that

2017 is a volatile year for VPBank in general and the Bank VPBank Langha inparticular

Table 3.3 Business result of VPBank Lang Ha

Source: company report

At the end of 2017, the branch achieved a profit of VND 51,435 million,exceeding the plan assigned in the year VPBank Lang Ha was selected as animpressive branch and one of the top branches of VPBank in the Northernregion VPBank Lang Ha's objectives in 2016 in addition to its profit targets, thebranch also prepares a plan to improve and improve the quality of products andservices in order to continue to bring banking facilities to every hand businesses

and individuals, together contribute to improving the quality of life of Lang Hapeople in the integration period.

3.2.4 Business segment

VPBank deploys nine business segments, including four main segments:

Consumer Finance (FE credit)

Main products: consumer loans, credit cards, two-wheeler loans

Individual customers

Focus on a few mobilized products, loans and services Main products such

as home loan, automobile, consumer, business, mortgage, credit card VPBankcontinues to develop Affluent Banking & Credit Card, digital channel

Household Banking (comm credit)

The department was established in July 2015 to target the manufacturingsector, small traders VPBank launches commencement to focus on serving localcustomers

In addition, VPBank has diversified into other business segments

Digital banking service

Digital banking is a segment of the digital divide in 2015 to digitize existingbanking processes and services Providing banking products via e-bankingsystem that can be accessed from the web and smart applications VPBank has apartnership with Fintech in this segment to help VPBank secure and keep up todate with the latest technology in the world

VP direct

Starting in March 2017 and planned to launch in the second half of 2018,with the goal of becoming a bank of international standards

Large corporate customers

Serving VPBank's corporate customers with annual turnover ranging fromVND 400 billion to VND 1600 billion Include private and local business clients

as well as medium-sized state-owned enterprises

Large corporate customers and investors

Targeting businesses with annual revenue of over 1600 billion Focus onmobilizing and developing a selective portfolio of loans