NATIONAL ECONOMICS UNIVERSITY BUSINESS SCHOOL LUU VINH HIEN IMPROVING CUSTOMER SERVICE QUALITY FOR INDIVIDUAL CUSTOMERS AT VNDIRECT SECURITIES JOINT STOCK COMPANY Bachelor of Business Administration i[.]
INTRODUCTION
RATIONALE
In the year 2000, Vietnam Stock Market was established and created a method to strengthen the not only the development of capitalization but also the economy of the country By the year of 2007 and 2008, there was total of 150 securities companies in Vietnam The appearance of such many securities company created a competitive environment in the stock market and provide a large number of choices for the investors Furthermore, becoming a member of WTO makes the Vietnam market more competitively among securities companies.
To remain competitive and continue growing, VNDIRECT Securities Joint Stock Company must prioritize maintaining strong relationships with existing clients while attracting new customers by enhancing the value provided, particularly through superior customer service Regular assessment of service quality and customer satisfaction is crucial, as customer satisfaction directly influences sales and profitability Understanding current service performance enables the management team to develop accurate strategies for future growth This insight underpins the research titled “Improving the Customer Service Quality for Individual Customers at VNDIRECT Joint Stock Company,” aimed at enhancing service standards and supporting overall business success.
Hopefully, this research will be not only useful for the situation ofVNDIRECT Securities Joint Stock Company but also other securities companies in the industry to help the quality of customer service become more professional and bring the best benefits for the customers and the economy.
RESEARCH OBJECTIVES
The purpose of the research is to:
- Define factors to measure the service quality for individual customers at VNDIRECT Securities Joint Stock Company.
- Assess the factors of service quality for individual customers at VNDIRECT Securities Joint Stock Company.
- Analyze the current situation of customer service quality for individual customers at VNDIRECT Securities Joint Stock Company.
- Suggest several solutions and recommendations to improve the quality of customer services for individual customers at VNDIRECT Securities Joint Stock Company.
RESEARCH QUESTIONS
The research aim to answers some questions to achieve the above research objectives:
- What are the factors to measure the service quality for individual customers at VNDIRECT Securities Joint Stock Company? How they affect the service quality for individual customers?
- What is the current situation of customer services for individual customers at VNDIRECT Securities Joint Stock Company? What are the strengths and weaknesses? What are the reasons for drawbacks?
- How to solve those problems to improve the current situation?
RESEARCH SCOPE
- Object of the research: the research focused on customer services quality for individual customers using securities services and how to deal with the problems of customer services quality at VNDIRECT Securities Joint Stock Company.
- Location: the research was implemented in the Headquarter of VNDIRECT Securities Joint Stock Company – which is located in No.1 Nguyen Thuong Hien Street, Hai Ba Trung District, Hanoi.
- Time: The secondary data was collected from 2013 to the present time The primary data was conducted in November 2015.
RESEARCH METHODOLY
- The secondary data was collected from various reports, books, from sources on Internet and from other researches to find the suitable theoretical frameworks and research model of customer service quality.
- The secondary data was also collected from reports, articles and documents about VNDIRECT Joint Stock Company to understand the current situation of the customer service quality for individual customers of the company.
- In-depth interview: 04 manager of VNDIRECT Securities Joint Stock
Company were interviewed to collect their opinions about: o The process of securities services and some required qualities needed in securities services. o The current situation of securities services at VNDIRECT Securities Joint Stock Company (advantages and disadvantages) and some methods to tackle challenges which the company are now facing with. o Plans for the development of the company in the future
A customer survey was conducted by sending survey forms to individuals using brokerage services at VNDIRECT Securities Joint Stock Company, either in person at the VNDIRECT Stock Exchange or via email The survey targeted a random sample of 150 customers, with 123 responses successfully collected The data collection took place from November 10th to November 30th.
November. o The content of survey form is shown in Appendix 1.
The data, after being collected, was encoded and stored by Microsoft Excel and then Microsoft Excel and SPSS 20 were used to conduct several analysis such as Descriptive Statistics, Exploratory Factor Analysis, Reliability Analysis and
STRUCTURE OF THE RESEARCH
Besides Acknowledgement, Table of Contents, Abbreviations, List of Tables, List of Figures, Executive Summary, References and Appendix, the main content of the research is divided in five chapters as listed below:
Chapter 2: Literature review and theoretical background of customer services qualityChapter 3: Research methodology
Chapter 4: The situation of customer services quality for individual customers at VNDIRECT Joint Stock Company
Chapter 5: Conclusion and recommendation to improve the customer services quality for individual customers in VNDIRECT Joint Stock Company
THEORETICAL BACKGROUND ON THE QUALITY OF
THEORETICAL BACKGROUND OF CUSTOMER SERVICE QUALITY
2.1.1 The concept of customer service
Service is a special type of product which is intangible Customers receive the product through activities of communication, information and perception, which is provided by the supplier Service is a popular term and there are many different definition that professionals and researchers use to define what service is
According to Gronroos (1990), service is an activity or series of activities of more or less intangible nature that normally, but not necessarily, take place in interactions between customer and service employees and/or physical resources or goods and/or systems of the service provider, which are provided as solutions to customer problems.
According to Zeithaml and Bitner (2000), service is an activity, process and method to create value for the customers to satisfy their need and demand.
According to Kotler and Armstrong (2004), service is an activities or benefit that businesses offered to the customers to create, strengthen and expand relationships and cooperation with the customers.
According to ISO 8402, service is defined as the result produced through interactions between the supplier and customer, as well as the internal activities of the supplier, aimed at meeting customer needs and demands.
According to Philip Kotler (1997) service is an action or an activity which can be offered by a party to another party, which is basically intangible and cannot affect any ownership Service may be related to tangible product or intangible product.
In general, service is a process which takes place in the interactions between the supplier and customers to meet the demand of customers, in the way that customers desires
2.1.2 The concept of customer service quality
According to Babakus, E and Boller, GW (1992, pages 253-268), quality of products and services has been a common concern of the society Services quality is hard to define and measure and there are still not any effective method and strategy to manage the quality of service We could not use the method of controlling and managing product tangible products to apply with service quality because service has its special characteristics which affect the process of delivering services to customers.
According to Bowen (1986), unlike tangible products, services are intangible products which are produced and consumed at the same time, in the presence of the customer and the service producer The involvement of the human elements during the delivery process increases the probability of error occurring on the part of employees and customers This is due to the fact that intangible behavioral processes is not easily controlled (Bowen, 1986)
According to Parasuraman, Zeithaml and Berry (1985), service quality is the perception of customers of the services Also according to Parasuraman at el.
(1988), service quality can be defined as an overall judgment of the service similar to attitude towards the services According to Zeithaml (1987), service quality is the assessment of customers about features of a subject It is the different between the expectation of customers of the services and the perceived services.
According to Lewis and Booms (1984, page 99-107), service quality is a measurement of the level of service delivered to customers with the expectations of customers about how good the service is Creating high quality services is the process of offering customers with services which satisfy their expectations the most.
According to ISO 8402, service quality can be considered as “gathering the characteristics of an object, giving the audience the ability to satisfy the requirements outlined or potential” It also can be understood that service quality is the satisfaction of customer as measured by differences between service expected and service perceived.
If the performance of service achieved is higher than the performance of service expected, the service quality is excellent.
If the performance of service achieved is equal to the performance of service expected, the service quality is good.
If the performance of service achieved is lower than the performance of service expected the service quality is low
If the quality is high, the customers is satisfied when using service If the quality is low, the customers is dissatisfied with the service The value which the customer perceived is generated by the value chain of the service offered to the customers, with several elements such as: the service, the staff, activities of competitors and knowledge and understanding of customers about the service.
The premises of service quality are the delivery process of service to the customers and the features of service operation, the knowledge of the customers in general and their understanding about the service Therefore, service quality may be assessed through three aspects: physical quality of service (equipment, office, etc.), quality of the organization or the supplier (operational management, reliability, image, profile, etc.) and quality of delivery process (interactions between supplier and customer).
In general, there are some basic characteristics of service quality:
- It is much more difficult to assess the quality of service compared to the quality of tangible products.
Service quality is determined through a comparison between customer expectations and the actual performance delivered by the service provider It reflects how well the supplier meets customer demands and needs, ensuring a satisfactory experience Understanding this comparison is essential for businesses aiming to enhance their service quality and achieve customer satisfaction.
THE CONCEPT OF QUALITY OF SECURITIES COMPANY
A securities company specializes in trading stocks and bonds on behalf of clients, serving as an intermediary between buyers and sellers in the stock exchange market These firms facilitate investment opportunities for investors by connecting them with the right market transactions Additionally, securities companies offer valuable services, providing clients with essential market insights and factual information to support informed investment decisions.
The main service of securities companies is brokerage services Researching is one of the main jobs of securities brokers They research performances of Joint Stock Company and securities and then categorizes these stock into different portfolios to present to the clients As an advisor, a securities broker must know the market trends, factors affecting movements in the stock market, analyze companies in different industries that could influence their clients’ investments and help their clients to make decisions.
Besides brokerage services, securities companies also offer customers with other securities services such as depository, corporate finance, proprietary trading and portfolio management.
There are several basic functions of Securities Company:
Acting as a mediating party, Securities Company create a system that flexibly mobilizes asset from inactive money sources to people who want to spend financial capital (through the activities of underwriting and securities brokerage services).
Creating valuating mechanism for transactions (through the auction system): The investors could actively and objectively set the price With information sources about market, businesses of companies, transactions mechanism, investors could accurately set the price for their investments
Creating liquidity for securities, easily transforming from securities to cash and vice versa, which helps investors to minimize financial loss during investing
Securities companies play a crucial role in adjusting and stabilizing the securities market through proprietary trading and acting as market makers By actively intervening in the market, they help maintain price stability and ensure smooth trading activities In accordance with government regulations, securities firms are required to allocate a specific proportion of their transactions to buying stocks during market declines and selling securities when prices rise, thereby supporting market stability and investor confidence.
Consulting investors: with their financial specialties such as financial consulting or acting as a medium during transactions, Securities Company sales force have saved customers’ time and cost when investing in stock market which, as a result, also increases investing efficiency Securities Company also offer various consulting services through market researching and providing individuals, companies and organizations with information in order to make precise decisions, minimize risks and increase profit
Providing the authorities with information of stock market
MODEL FOR MEASURING CUSTOMER SERVICE QUALITY
2.3.1 Service quality model of Gronroos, 1984
Gronroos developed the Nordic Model of Service Quality in 1984 This model study how technical quality and function quality influence the perceived service quality and expected service quality, based on the model of 5 performance gap of Parasuraman The model of Gronroos (1984) shows that the perception of customer about the service quality based on three main factors The first one related to what customer feel satisfy of the service, what they achieved The second factor related to how they are satisfied and the third one related to image and reputation of the company or organization.
Figure 2.1 The Nordic model (Gronroos,1984)
Technical Quality: including the real value that the customers achieve from the services that the company supply.
Functional Quality: represent the process of delivering service to the customers using service It includes five components: reliability, tangible, assurance, responsiveness and empathy.
Image and reputation: Image and reputation factor acts as a filter for the perception of the customer about the service The consumers could assess the quality of the service provided by the supplier is high or low quality based on past experiences It even showed more clearly when the customers often use the service or interact with the service provided by the same supplier time after time or suppliers providing the same kind of service.
The model assumes that there are a direct connection between the service quality perceived by the customers and aspects of function quality and technical quality Furthermore, image of the company has indirect influences to quality of perceived quality Finally, the model also supposes that quality of the service leads to the satisfaction of consumers.
In conclusion, the aim of the researches about customer service quality is to find out the components of function quality and technical quality, the influences of image to the perception of the customers about the customer service quality.
2.3.2 SERVQUAL Model of Parasuraman & ctg (1985)
Parasuraman and colleagues (1985, 1988) pioneered research in service quality, establishing a foundational method for evaluating customer perceptions of service excellence Their work led to the development of the SERVQUAL model, which seamlessly merges "Service" and "Quality" to assess customer satisfaction effectively Focused on the "customer’s perceived service quality," this model emphasizes that customers’ perceptions provide the most accurate and objective measure of service quality, enabling businesses to enhance their service offerings.
According to Parasuraman & ctg (1985), in any type of service, the quality perceived by the customers could be analyze in a model with 10 components, and then in the early 1990s, the author refined the model, which created the acronym RATER, with five factors listed below:
Reliability: represent the ability to supply the customers with promised service with a trustworthy and accurate manner right in the first occasion.
It also showed in several aspects such as time, schedule or correct and up- to-date information.
Assurance: represent the knowledge and behaviors of service providers and their ability to convey confidence and trust to the customers.
Tangibles: represent the physical evidence of the service provided, such as appearances of the staff, equipment or facilities.
Empathy: represent the ability to express concern or provide cares or attention for each individual customers.
Responsiveness: represent the readiness and willingness of employees to help customers by providing them with rapid and prompt services.
According to SERVQUAL model, there are five gaps which affect the perceived service quality:
Gap 1: the first gap is the difference between customer’s expectations for quality of the service and the perception of the provider about their customer’s expectations This is basically due to the reason that the supplier do not understand what characteristics of the service enhance create quality of the service.
Gap 2: the second gap is the difference between the perceptions of the provider about their customer’s expectations with the process of converting perceptions into criteria of service quality and deliver them in accordance with customer expectations, despite the fact that they are aware of the expectations of customers
Gap 3 occurs when staff members delivering direct customer service fail to meet the established performance criteria, highlighting the importance of well-trained employees The role of frontline staff is crucial in creating a high-quality service experience that meets customer expectations Addressing this gap ensures consistent service delivery and enhances overall customer satisfaction Proper training and clear performance standards are essential to help staff perform effectively and bridge this service gap.
Figure 2.2 Customer Service Model of Parasuraman (1985)
Gap 4: the forth gap appears when there is a difference between the communication and information that the customer receive about the service and the service delivery These information might increase the expectation of customer about the service and also decrease the quality of service that customer perceived if the customer are not provided with the promised service Advertising or media play an important role in this gap.
Gap 5 arises when there is a discrepancy between the expected service quality and the perceived service quality experienced by the customer According to Parasuraman et al (1985), this gap directly impacts overall service quality When customers perceive no difference between their expected and actual service, the service is regarded as excellent, highlighting the importance of meeting or exceeding customer expectations for optimal service delivery.
Parasuraman et al (1985) identified that service quality is fundamentally influenced by the fifth gap, which depends on the preceding four gaps To improve overall service quality and reduce this gap, service providers must focus on bridging these underlying gaps Addressing these factors enables service administrators to enhance customer satisfaction and deliver higher-quality services.
Figure 2.3 Measuring Service Quality using SERVQUAL model
The SERVQUAL model consists of two parts, each containing 22 statements, designed to measure different aspects of service quality The first part focuses on capturing customer expectations regarding the service they anticipate, regardless of the service provider The second part assesses the customers' perceptions of the actual service delivered by the business under evaluation By comparing these two sets of responses, the model identifies the service quality gap, which highlights discrepancies between customer expectations and their perceived experience This gap analysis is typically represented by a specific equation, helping businesses pinpoint areas for improvement to enhance customer satisfaction.
Service quality = Level of perception – Level of expectationThe statements are:
To ensure a strong tangibles aspect, businesses should invest in up-to-date equipment and maintain visual appeal in their physical facilities Employees should be well-dressed and appear neat to reflect professionalism and care Additionally, the appearance of physical facilities must be visually appealing and aligned with the nature of the service offered, enhancing the overall customer experience.
RELIABILITY o Show sincere interest in solving customers’ problems. o Performs the service right at the first time. o Customers feel trust in the services provided. o Provides services at the time promised. o Maintains error-free records.
RESPONSIVENESS o Inform customers when services will be performed. o Offers prompt services to customers. o Always willing to help customers. o Readily respond to customers’ request.
ASSURANCE o Able to instill confidence in customers. o Customers feel safe in their transactions. o Employees are courteous at all the times. o Have knowledge to answer customers’ requests.
CONCEPTUAL FRAMEWORK
The research “Improving customer service quality for individual customers inVNDIRECT Joint Stock Company” is based on other researches, reports and articles related to customer service quality and brokerage service quality and the results of those documents The theoretical background is based on service quality measuring models such as SERVQUAL of Parasuraman & ctg (1985), SERVPERF of Cronin
To comprehensively assess customer service quality at VNDIRECT, it is essential to integrate the measuring criteria from Taylor (1992), Gronross (1984), and other models Initially, the SERVPERF model, which focuses on customers' perceptions through 22 statements across five dimensions, was employed rather than the traditional SERVQUAL model These statements were adapted and combined with the technical quality dimension based on Gronross’s (1984) model Additionally, findings from prior customer service quality research, such as Luong Thi Mai Huong’s 2015 thesis on brokerage service quality at Nha Viet Real Estate Joint Stock Company, support the effectiveness of this integrated approach.
“Improving customer services quality for individual customers at Nam Hanoi Branch of Maritime Bank” of Phi Thi Le Quyen (2015), the research “SERVQUAL or SERVPERF – A comparative study in Vietnamese supermarket” of Nguyen Huy Phong and Pham Ngoc Thuy, Ho Chi Minh City University of Technology, published in Science and Technology Development Magazine, vol.10, no.8 (2007), the research“Research of Service Quality Measuring Models” of Phan Chi Anh, Nguyen Thu Ha, Nguyen Hue Minh, University of Economics and Business – Vietnam National University, published on the magazine of University of Economics and Business – Vietnam National University, vol.29, no.1 (2013), the research “Applying SERVPERF measurement to assess service quality of mobile communication service in Da Nang” of Nguyen Thi Phuong Linh As a result, 6 main factors (5 independent, 1 dependent) with 34 criteria was formed to create the measuring model for customer service quality of individual customers in VNDIRECT The model is described as below:
QS= β0 + β1*IF + β2*CS + β3*CC + β4*TS + β5*IM + U i
Figure 2.5 Conceptual Framework for measuring customer service quality at
VNDIRECT Securities Joint Stock Company
Infrastructures and facilities (IF) o IF1 Location of VNDIRECT office is easy for customers to find and access to. o IF2 Operation hours is convenient to customers’ demand. o IF3 VNDIRECT office has high technology and modern equipment and facilities (computers, stock transactions screens, website). o IF4 VNDIRECT office is visually appealing and hygiene. o IF5 VNDIRECT effectively apply modern technology into transactions and management process
VNDIRECT's staff demonstrate professional knowledge and skills in securities, ensuring clients receive expert guidance They are committed to serving customer demands promptly and effectively, providing quick responses to orders within a set timeframe The team maintains a professional and polite attitude, prioritizing customers' best interests and benefits VNDIRECT staff attentively listen to each client's personal investment needs and experiences, fostering personalized service Their dedication to instilling confidence in customers helps build trust and reliable investment relationships.
VNDIRECT prioritizes exceptional customer care by addressing complaints and resolving issues promptly and satisfactorily Our processes are designed to be convenient and easy to ensure a seamless experience for clients The dedicated customer service hotline efficiently manages orders, providing reliable support Additionally, VNDIRECT offers informative securities investment workshops that deliver valuable guidance and engaging content to help customers make informed investment decisions.
Transactions (TS) o TS1 Transactions fee of VNDIRECT’s services is competitive with other securities companies. o TS2 Making transaction orders at VNDIRECT office is accurate, fast and convenient. o TS3 Making transaction orders by customer service hotline system is accurate, fast and convenient. o TS4 Making transaction orders by online website system is accurate, fast and convenient. o TS5 Investment consulting products and services (brokerage services, securities newsletters, etc.) of VNDIRECT are beneficial for customers. o TS6 Financial and transaction supporting services (advanced payment, purchase order guarantee, term deposit, securities lending cooperation, etc.) at VNDIRECT are beneficial for customers. o TS7 Information of securities exchange market on VNDIRECT’s website is always up-to-dated, accurate and easy for customers to access. o TS8 Customers always feel safe and fair when making securities transactions at VNDIRECT. o TS9 VNDIRECT always keep customers’ transactions information secret and accurate.
VNDIRECT (IM) is committed to providing customers with professional and trustworthy services, supported by a team of well-presented and highly skilled staff who serve clients with a professional style The company's transaction environment is designed to be both professional and friendly, ensuring a comfortable experience for all users VNDIRECT staff members always dress neatly in well-designed uniforms, reflecting the company's strong emphasis on professionalism Additionally, VNDIRECT's website features an attractive and professionally designed interface, enhancing user experience and reinforcing the company's reputable image.
VNDIRECT is a trustworthy securities company known for its high quality of service (QS), earning customer confidence and loyalty Customers willingly recommend VNDIRECT's securities services to friends and family, reflecting their satisfaction and trust When it comes to exchanging, transacting, or investing in securities, customers consistently think of VNDIRECT as their preferred choice Overall, clients are always satisfied with their securities transactions at VNDIRECT, reinforcing its reputation for excellent service.
RESEARCH METHODOLOGY
RESEARCH PROCESS
Research process is carried out through six steps:
1 Conducting research on literature review and theoretical framework; colleting secondary data.
2 Form a list of dimensions to measure VNDIRECT customer service quality for individual customers.
3 Conducting survey with customers and in-depth interview with VNDIRECT managers to collect primary data.
5 Determining the current situation of VNDIRECT customer service quality for individual customers.
6 Suggesting solutions and recommendations to improve customer service quality At VNDIRECT Securities Joint Stock Company.
RESEARCH METHODOLOGY
To gain a comprehensive understanding of the research topic, information sources including reports, books, articles, magazines, and websites related to securities, as well as previous studies, were thoroughly collected.
Steps of qualitative research are included:
Define the factors influencing customer service quality for individual customers at VNDIRECT Securities Joint Stock Company.
Define the level of impact of the factors on customer service quality for individual customers at VNDIRECT Securities Joint Stock Company.
Define the specific demand of customers for customer service quality for individual customers at VNDIRECT Securities Joint Stock Company.
These steps were applied to the in-depth interview with managers in order to receive their opinions and add to the measurement of customer service quality model Then, official research theoretical and model were developed.
The quantitative research was done by sending survey form to customers atVNDIRECT office or through email The number of respondents is 123 customers.
Steps of quantitative research are included:
Design the survey form, conducted a demo survey with 10 customers and adjusted to have appropriate questions.
Official survey: survey with the survey form (give the hard copy of survey to clients coming to VNDIRECT office or sent survey to customers by Google Form and email)
The measurement of survey questions is based on four fundamental standards: reliability, validity, variety, and ease of response Ensuring reliability guarantees that the data is trustworthy by minimizing uncertainty In this study, a 5-point Likert scale was employed to effectively assess the factors that influence customer service quality for individual clients of VNDIRECT.
Level 5: Totally agree/ totally satisfy
Level 1: Totally disagree/ totally dissatisfy
DATA COLLECTION
Secondary data used in this thesis is the data collected from within three years viaCompany’s financial reports, articles, websites information or magazine Each year,VNDIRECT announce their official annual report including information such as company profile, organization structure, company mission, vision or status of human resource management.
Primary data is collected from the evaluation of customer service quality based on the point of customers’ view This aims to identify the strengths and weaknesses of the customer service quality for individual customers at VNDIRECT.
Customer survey o Survey questions: designed according to 05 factors of assessment customer service quality at VNDIRECT mentioned in Chapter 2 To get a detailed assessment, each criterion is divided into small questions – which would help the customer feel easier to answers o Method: sent directly to customer coming to VNDIRECT office at No.1 Nguyen Thuong Hien or sent online Google Form to customer via email. o Number of respondents: the survey form was sent to 150 customer who have trading account at VNDIRECT As a result, 123 customer gave their answers. o Implementation survey: the survey was carried out from 1 st November to 30 th November 2015.
In-depth interview with manager: the in-depth interview was carried out to receive VNDIRECT’s manager opinions of factors influencing customer service quality for individual customers at VNDIRECT and VNDIRECT’s plans to improve individual customer service quality in the current situation. The list of interviewees is following: o Mr Vu Hoang Viet – Director of Individual Customer Service Department. o Mrs Dam Thi Huong Sam – Marketing Manager. o Mrs Le Huong Mai – Director of Human Resource Department. o Mr Nguyen Tuan Anh – Director of Brokerage Service Department.
DATA ANALYSIS
After being collected, the data was then encoded and stored by Microsoft Excel For the analyzing, both Microsoft Excel and SPSS 20.0 were used to conduct different type of analysis.
To test the reliability of the measurement, the Cronbach’s Alpha Reliability Analysis was conducted Many researchers agreed that if the Crobach’s Alpha got the result from 0.8 to 1.0 then the measurement is excellent, if the result is from 0.7 to 0.8 is acceptable There are also other researchers proposed that if Cronbach’s Alpha is more than 0.6 then the measurement is acceptable, in the case the research topic is new or the respondents are new to the questions (Hoang Trong – Chu Nguyen Mong Ngoc, 2008) Therefore, in this thesis, the Cronbach Alpha larger than 0.6 is acceptable.
The Kaiser-Meyer-Olkin (KMO) measure indicates the overall fit of the variable correlations, with values between 0.5 and 1 signifying suitability for exploratory factor analysis (EFA), while values below 0.5 suggest unsuitability Bartlett’s Test of Sphericity assesses the model's fit and significance in EFA, ensuring the data is appropriate for factor extraction Factors are extracted using the Varimax Rotation and Principal Component Analysis, with acceptable factors having Eigenvalues greater than 1 and cumulative variance explained exceeding 50% Additionally, factor loadings should be above 0.5 to demonstrate meaningful relationships between variables and factors The results of the EFA guide whether the proposed model requires adjustments, including the addition or removal of factors or variables.
After testing, the measurement data was analyzed using Linear Regression Analysis with Ordinary Least Squares (OLS) employing both Enter and Stepwise methods The regression model checked for multicollinearity, a phenomenon where independent variables are highly correlated, which can obscure individual variable effects on the dependent variable Multicollinearity poses a problem because highly correlated variables provide redundant information, making it difficult to distinguish their distinct influences If the Variance Inflation Factor (VIF) remains below 5, the model indicates that multicollinearity is not present, ensuring reliable regression results.
After testing the result of the regression, it can be concluded that the coefficients of regression are not biased and the result is reliable.
THE RESULT OF THE RESEARCH – THE CURRENT
OVERVIEW OF VNDIRECT SECURITES JOINT STOCK COMPANY
Vietnamese Name: Công ty cổ phần Chứng khoán VNDIRECT
English Name: VNDIRECT Securities Joint Stock Company
Founded: 2006 by IPA Investment Group
Headquater: No 1 Nguyen Thuong Hien Street, Hanoi
Email: support@vndirect.com.vn
Website: https://www.vndirect.com.vn
Business Activities o Securities Brokerage o Depository o Corporate Finance o Proprietary Trading o Underwriting o Portfolio management
Vision: To become the first choice of every investor
Mission: Grow sustainably for the benefits of every customer, every shareholder and every employee
Core Values: Integrity – Commitment – Professional Knowledge – Positive Attitude
VNDIRECT Securities Joint Stock Company (VNDIRECT) is part of IPA Investment Group, a leading conglomerate specializing in financial services and real estate investment Established with license number 22/UBCK – GPHDKD on November 16, 2016, by the State Securities Commission, VNDIRECT is a reputable securities firm committed to providing comprehensive investment solutions.
Some memorable milestones through the development history of the company:
November 2006: VNDIRECT was founded with charter capital of VND
April 2007: Established Ho Chi Minh City branch
November 2007: Raised charter capital to VND 300 Billion
December 2008: The Headquarter of the company moved to No.1 Nguyen Thuong Hien Street, Hai Ba Trung, Hanoi
December 2009: VNDIRECT overcame the financial crisis and was ranked 1 st among securities companies and 2 nd in finance and banking sector
February 2010: Raised charter capital to VND 450 Billion
August 2010: Raised charter capital to VND 1000 Billion
October 2010, VNDIECT appointed Mr Nguyen Hoang Giang as Chief Executive Officer (CEO)
December 2012, Established Da Nang Branch
Quarter 3/2011: Ranked 1 st in Stock brokerage market share on HNX
2014: Raised charter capital to VND 1,550 billion and became the third largest securities company in terms of capital size
After 8 years of development, VNDIRECT has become a securities company focusing on retail brokerage with the equity of VND 1,835.3 billion, 57,400 customer accounts and a team of nearly 600 employees who are specialized in finance and securities
4.1.3 Functions and missions of VNDIRECT
There are several basic functions of VNDIRECT Securities Company:
Acting as a bridge, VNDIRECT create a system that flexibly mobilizes asset from inactive money sources to people who want to spend financial capital (through the activities of underwriting and securities brokerage services).
Creating valuating mechanism for transactions (through the auction system): The investors could actively and objectively set the price With information sources about market, businesses of companies, transactions mechanism, investors could accurately set the price for their investments.
Creating liquidity for securities, easily transforming from securities to cash and vice versa, which helps investors to minimize financial loss during investing
VNDIRECT plays a crucial role in adjusting and stabilizing the securities market through proprietary trading and market creation activities As part of regulatory compliance, securities companies are required to allocate a designated portion of their own transactions to support market stability—buying stocks during price declines and selling during price increases This proactive involvement helps maintain orderly market movements and enhances overall market confidence.
Consulting investors: with their financial specialties such as financial consulting or acting as a medium during transactions, VNDIRECT sales force have saved customers’ time and cost when investing in stock market which, as a result, also increases investing efficiency. VNDIRECT also offer various consulting services through market researching and providing individuals, companies and organizations with information in order to make precise decisions, minimize risks and increase profit
Providing the authorities with information of stock market
Figure 4.1 Organization Structure of VNDIRECT
(Source: VNDIRECT Company Meeting Report, September 2015)
4.1.5 VNDIRECT’s services, market and customers a Characteristics of Services
Services is consist of all activities throughout the process in which customers and providers interact with each other in order to meet customers’ demand and create value for the customers.
Naturally, VNDIRECT’s business activities is about providing services to its customers Therefore, VNDIRECT’s services also have basic characteristics similar to other companies’ services: intangibility, inseparability,perishability and variability.
Firstly, almost every services is considered intangible products – intangibility The outcomes of VNDIRECT’s products are unclear, uncountable, unseeable, unstoreable and cannot be qualified before the consumption of services This service is difficult to advertise, and is the result of relationship between customers and providers Because of the services’s intangibility, the company is now facing difficulties while researching how the customers feel about its services and services quality.
Secondly, VNDIRECT services have the characteristics of inseparability between the providers and the consumers VNDIRECT’s services are produced and consumed simultaneously Thus, the customers directly control the services process.
Thirdly, VNDIRECT’s services also possess the variability of service quality The reason is that in daily business activities, factors such as customers, providers, time or standards of company services may be changed over times. Therefore, services that VNDIRECT provide may be unstable and may be different from what the customers had expected.
As for the customers, when experiencing services of VNDIRECT or other securities companies, they have many different options and choices, which will lead to the inconsistency in their decisions.
VNDIRECT staff play a crucial role in directly engaging with customers, impacting their choices and overall service experience To ensure consistent high-quality services, VNDIRECT emphasizes comprehensive staff training, aiming to develop well-trained employees with professional behavior This focus on staff development helps maintain excellent customer interactions and uphold VNDIRECT's reputation for service excellence.
Finally, service is perishable and cannot be stored for a future use.
VNDIRECT’s services do not have storage because of intangibility The process of producing and consuming take place simultaneously Meanwhile, the demand for VNDIRECT’s services vary over time and directly depend on Vietnam or
Global stock markets As a result, VNDIRECT’s services have to occasionally update to meet the standard and satisfy the fluctuate meet of markets. b VNDIRECT’s Services
VNDIRECT Securities Joint Stock Company currently provides a number of essential services in the stock market, such as: securities brokerage service, proprietary trading, underwriting, financial capital service and some more services
VNDIRECT serves as a vital intermediary, enabling investors to buy and sell stocks efficiently and conveniently through its advanced order placement system and digital price lists As with other securities companies, brokerage services are crucial to VNDIRECT's operations, generating significant income for the firm These activities also help increase the number of active accounts and transaction volumes, contributing to overall profitability not only from brokerage commissions but also from other related financial services.
Advance Payment: Investors can use VNDIRECT Online Advance Payment Service to advance immediately when sell transaction orders is matched.
Purchase Order Guarantee: This service is that VNDIRECT arrange funds to make payments on behalf of customers in accordance the agreement when the purchase of securities in the investor’s account exceeds the deposit amount.
Term Deposit: Term Deposit Service is the utility for the investors who have idle cash in the account with flexible interest rates and attractive terms.
Securities Lending Cooperation: Investors may borrow to purchase securities with high rate and diversified portfolio, based on the cooperation with the third financial institution.
VNDIRECT offers comprehensive securities depository services, including secure archiving and management of customers' securities The platform ensures that all securities held by clients are accurately recorded in their depository accounts, facilitating seamless ownership verification When investors trade stocks, any increase or decrease in their account balances is automatically reflected in real-time, eliminating the need for physical stock certificates This efficient system guarantees secure, transparent, and hassle-free securities custody and transaction processing.
THE ASSESSMENT OF CUSTOMER SERVICE QUALITY FOR
INDIVIDUAL CUSTOMER AT VNDIRECT SECURITIES JOINT
Survey sample size: 123 customers give their opinions to the survey questions All of the respondents had made securities transactions at VNDIRECT Securities Joint Stock Company.
In-depth Interview: 04 managers (Marketing Manager, Brokerage ServicesDirector, Customer Service Director and Human Resources Director) gave their opinions about requirement of service quality to meet customers’ demand and company’s objectives and strategies.
The primary data was collected from 123 customers of the company To be specific, the demography of the respondents’ profile was described as followed characteristics:
Chart 4.1 Age group of Respondents
The survey of 123 customers reveals that the majority are aged between 35 and 50 years old, representing 41% of respondents (50 customers), followed closely by those aged 25 to 35 years old, comprising 38 customers This trend likely reflects that individuals in these age groups are more likely to have stable employment and income, enabling them to pursue securities investments Customers over 50 years old account for 18% of respondents (22 customers), while those under 25 years old make up only about 10% of the total, indicating lower participation among younger individuals.
Chart 4.2 Gender groups of Respondents
The result of the survey shows that in 123 respondents who have been using VNDIRECT Securities Joint Stock Company to invest their money in stock market,
87 customers is male (which takes up 70.73% of total sample), while that number of female respondents is 36 customers (which is 29.27% of total sample).
In terms of education level, it is could be clearly seen from the table that the respondents group is mainly composed by people with bachelor or college degree.The customers graduated with bachelor degrees takes up almost a half of total 123 respondents (56 customers, 46% of total sample), while people with graduated from colleges is accounted for about a quarter of total sample (31 customers).
Other College Bachelor Master and Ph.D
Chart 4.3 Education Level of Respondents
There are a small 1% difference between the two smaller group of customer, respondents with higher education level (Master or Ph.D degrees) and the respondents with other educational background, 15% and 14% respectively.
Investing in securities for less than 1 year 1 year - 2 years 2 - 3 years more than 3 years
Chart 4.4 Investing experience of Respondents
Approximately 34% of respondents (41 customers) have invested in the securities market for 1–2 years, indicating emerging investor engagement An equal proportion of 25% (31 customers) have traded stocks for less than 1 year and for 2–3 years, reflecting consistent short- to mid-term trading activity Additionally, 16% of respondents have invested for over three years, demonstrating a segment of long-term investors in the market.
Most respondents are aware of VNDIRECT Joint Stock Company primarily through modern information channels, with 78% citing television and 65% accessing Internet sources such as online stock market news, financial magazines, and stock analysis articles In contrast, fewer respondents learned about VNDIRECT via traditional media, with only 52% through word of mouth and 37% through newspapers This highlights the significant role of digital platforms and broadcast media in shaping public awareness of VNDIRECT.
Chart 4.5 Information Approaches of Respondents
Types of services used at VNDIRECT
Se cu riti es T ra ns ca tio ns
M on ey tr an sa cti on s
Ba sic co ns ul tin g se rv ice s
Ad va nc ed co ns ul tin g se rv ice s
Fi na nc ia l s up po rti ng se rv ice s
Ot he r s er vic es
Types of Services used at VNDIRECT
Chart 4.6 Types of services used by Respondents
A survey of 123 respondents revealed that all participants have previously used VNDIRECT's securities transaction services Additionally, 63.41% of respondents frequently utilize money transfer services About 47.97% have engaged with securities transaction support services, such as basic consulting, while 50.41% have used financial supporting services In contrast, advanced consulting services and other specialized offerings are used by only 20.33% and 7.32% of respondents, respectively, indicating varying levels of service adoption among individual customers.
At VNDIRECT Office By hotline By online website By brokers
Chart 4.7 Making transactions method of Respondents
The chart clearly indicates that the majority of VNDIRECT customers utilize the online website for executing transaction orders, accounting for 63.41% of users The next most popular method is using the customer service hotline, with 56.91% (70 respondents) having placed securities transactions via phone calls Additionally, 47% of customers (58 respondents) prefer to make orders in person at VNDIRECT offices, while 40.65% (50 respondents) rely on brokerage services to execute their transactions.
Frequency of using VNDIRECT services
Among the 123 respondents, 37% (46 customers) typically utilize VNDIRECT services, including securities and money transactions, 5 to 10 times per month Additionally, 29% of respondents access VNDIRECT services 10 to 20 times monthly, indicating regular engagement About 22% use the services less than 5 times per month, while 12% of customers have a high demand, using VNDIRECT services more than 20 times each month.
Frequency of using VNDIRECT services per month less than 5 times 5 - 10 times 10 - 20 times more than 20 times
Chart 4.8 Frequency of using VNDIRECT services of respondents
The Cronbach’s Alpha results for independent and dependent variables are used to identify variables that do not contribute reliably to the measurement model If removing an item increases Cronbach’s Alpha, it is recommended to delete that variable to enhance internal consistency Conversely, if deleting a variable results in a decrease in Cronbach’s Alpha, the variable should be retained in the survey to maintain measurement reliability Therefore, variables should meet conditions that optimize Cronbach’s Alpha, ensuring the validity and consistency of the data in the regression analysis.
(2) 0.3 < Total Correlation < Cronbach’s Alpha if Item Deleted < CronbachAlpha
Table 4.1 Cronbach’s Alpha Reliability Analysis
Variable Scale Mean if Item
Scale Variance if Item deleted
Cronbach’s Alpha if Item Deleted
INFRACSTRUCTRE & FACILITIES (IF), Cronbach’s Alpha = 0.869, N of
COMPETENCE OF STAFF (CS), Cronbach’s Alpha = 0.912, N of Items = 7
CUSTOMER CARE (CC), Cronbach’s Alpha = 0.760, N of Items = 4
TRANSACTIONS (TS), Cronbach’s Alpha = 0.920, N of Items = 9
IMAGE OF COMPANY (IM), Cronbach’s Alpha = 0.837, N of Items = 5
QUALITY OF SERVICE (QS), Cronbach’s Alpha = 0.776, N of Items = 4
The analysis indicates that among the variables, only CC4 should be removed due to its high Cronbach’s Alpha if Item Deleted, suggesting it negatively impacts the reliability The remaining 33 variables meet the necessary criteria, demonstrating their validity and measuring significance Overall, the Cronbach’s Alpha Reliability Test results confirm the consistency and reliability of the data, as summarized in the accompanying table.
Table 4.2 Cronbach’s Alpha Reliability Analysis Result Summary
3 Customer Care 0.760 CC4 01 variable is removed
4 Transactions 0.920 All variables are included
6 Quality of Service 0.776 All variables are included
Following the elimination of unnecessary variables, the study proceeded with Exploratory Factor Analysis (EFA); a Varimax rotation was applied to the independent variables, while no rotation was used for the dependent variables within the “Quality of Service” dimension It is essential that certain conditions are met to ensure the validity and reliability of the EFA process, including adequate sample size, suitable Kaiser-Meyer-Olkin (KMO) measure, and significant Bartlett's Test of Sphericity Conducting EFA with these specifications helps identify underlying factor structures that accurately represent the dimensions of “Quality of Service,” ultimately enhancing the robustness of the research findings.
(1) The value of Kaiser-Meyer-Olkin (KMO) statistics must be higher than 0.5.
(2) The value of Barlett’s Test of Sphericity must be lower than 0.05
(3) The value of factor loading must be equal or higher than 0.3
(4) The Initial Eigenvalue must be higher than 1.
(5) Cumulative % Extraction Sums of Squared Loadings must be higher 0.5
After conducting analysis with SPSS, the results are showed in below tables.
Table 4.4 EFA results for Independent Variables
Components 05 components from Varimax rotation
Variables All variables have statistical meaning
Table 4.5 EFA results for Dependent Variables “Quality of Service”
Variables All variables have statistical meaning
After conducting 01 EFA for independent variables and 01 EFA for dependent variables, there is no need to remove any variables, as all of them fulfill all conditions mentioned above.
Based on the results of Cronbach’s Alpha Reliability Test and Exploratory Factor Analysis, a Linear Regression with factors influence the service quality for individual customers is developed.
QS= α + β1*factor1 + β2*factor2 + β3*factor3 + β4*factor4 + β5*factor5 + Ui
In this thesis, coefficient of linear correlation r (according to Karl Pearson,
1897) is used to test the correlations between independent and dependent variables.
To be more specific, “Infrastructure and Facilities” (IF), “Competence of Staff”(CS), “Customer Care” (CC), “Transactions” (TS) and “Image of Company” (IM) are independent variables while “Quality of Service” (QS) is dependent variable.The average value of the factors/dimensions in response with these variables are used to conduct Correlation Analysis with SPSS The results are showed in the below table.
Table 4.6 Correlation Analysis for factors influencing customer service quality of individual customers at VNDIRECT
MIF MCS MCC MTS MIM MQS
The correlation coefficients indicate the relationship between the independent variables and the dependent variable, "Quality of Service," with all Sig values being less than 0.05, confirming their statistical significance The study utilized the Principal Component Extraction Method with Varimax Rotation in the Exploratory Factor Analysis (EFA), ensuring that the independent variables in the model are not correlated, thereby avoiding multicollinearity in the regression analysis.
To test the overall fit of the proposed model in chapter 3, Regression Analysis is conducted with the independent variables, which are “Infrastructure and Facilities” (IF), “Competence of Staff” (CS), “Customer Care” (CC), “Transactions” (TS), “Image of Company” (IM), and the dependent variable, which is “Quality of Service” The average value of the factors/dimensions in response with these variables (MIF, MCS, MCC, MTS, MIM, MQS) are used to conduct OSL Regression Analysis with Enter/Remove method.
Standard Error of the Estimate
F Change df 1 df2 Sig F Chang e
To test the overall fit of model, the Adjusted R 2 is used instead of R 2 because the value of Adjusted R 2 is lower than R 2 and have more value in the reality than R 2
The result of the analysis shows that Adjusted R 2 = 0.628, which means 62.8% of the change of dependent variable is explained by independent variables.
Squares df Mean Square F Sig.
Total 57.841 122 a Dependent Variable: MQS b Predictors: (Constant), MIM, MCS, MCC, MTS, MIF
The statistical significance of Regression has the value lower than 0.05,which indicates that overall, the regression model statistically and significantly predict the outcomes variables and it is a good fit for the data There are also a linear correlation between independent and dependent variables.
Table 4.9 Coefficient of Regression Model
Standardiz ed Coefficien ts t Sig Collinearity
B Std Error Beta Toleran ce
CONCLUSION
The result of these analysis has helped to answer the first two questions mentioned in the Research Objectives:
- What are the factors to measure the service quality for individual customers at VNDIRECT Securities Joint Stock Company? How they affect the service quality for individual customers?
VNDIRECT Securities Joint Stock Company currently offers customer service to individual clients that is characterized by professional assistance and accessible support channels, although there are areas for improvement The company's strengths include a knowledgeable support team, a user-friendly online platform, and timely communication, which enhance overall customer satisfaction However, weaknesses such as occasional delays in response times, limited personalized service for some clients, and gaps in follow-up procedures have been observed These drawbacks are primarily due to high call volumes during peak periods, inadequate staff training in certain service areas, and the need for more integrated customer relationship management systems Addressing these issues is essential to elevate the quality of customer service and better meet the needs of individual investors.
The research on customer service quality at VNDIRECT Securities Joint Stock Company reveals that the quality of service for individual customers is directly influenced by five key factors, highlighting the importance of these elements in delivering excellent customer experiences.
Our analysis indicates that all factors—Infrastructure and Facilities (IF), Competence of Staff (CS), Customer Care (CC), Transactions (TS), and Image of Company (IM)—positively influence customer service quality at VNDIRECT, though their impacts vary in magnitude Transactions (TS) have the most significant effect, with a coefficient of β4 = 0.391, explaining 39.1% of the variation in customer service quality Following this, Infrastructure and Facilities (IF) have the second-largest impact, with a coefficient of β1 = 0.207, accounting for 20.7% of the explained variance.
Staff competence significantly impacts service quality, with a beta coefficient of 0.174 indicating it accounts for 17.4% of the variation in service quality In contrast, "Customer Care" contributes a smaller influence, explaining only 4.9% of the change in service quality with a beta value of 0.049 These findings highlight that enhancing staff skills is a critical factor for improving overall service quality.
“Image of Company” represents for 12.9% (β5 = 0.129) of the dependent variable’s change Furthermore, to further test whether these factors truly impact to the customer service quality for individual customer of VNDIRECT or not, several hypothesis test is conducted with the 5% level of significance The result of the analysis shows that the sig value of all 05 factors are lower than 0.05, which can help us to conclude that all of these factors have statistical meaning These factors explain 62.3% the meaning of the regression of customer service quality for individual customers at VNDIRECT
The assessment of VNDIRECT’s customer service quality reveals an overall average score of 3.82 out of 5, indicating an acceptable level despite some dissatisfaction among customers The highest-rated factor is “Infrastructure and Facilities,” with a mean score of 3.91, reflecting VNDIRECT’s competitive advantage in technology-driven management and transaction systems “Transactions” follow closely, with a mean score of 3.75, significantly contributing to customer satisfaction, accounting for 39.1% of the service quality perception The positive impact of these factors underscores the importance of robust infrastructure and efficient transaction processes Additionally, staff performance positively influences customer perceptions However, notable drawbacks include the “Customer Care” factor, with a lower mean score of 3.48, suggesting inadequate attention and promptness in personalized service Improving complaint handling procedures and customer interaction processes is essential for higher satisfaction Despite a strong technological system, enhancing direct customer interactions and addressing service fees and hotline responsiveness are critical to elevating overall customer service quality at VNDIRECT.
RECOMMENDATIONS FOR IMROVING THE QUALITY
OF CUSTOMER SERVICE FOR INDIVIDUAL CUSTOMERS
AT VNDIRECT SECURITIES JOINT STOCK COMPANY
ORIENTATIONS TO IMPROVE THE CUSTOMER SERVICE QUALITY
After conducting the analysis of the customer service quality of VNDIRECT Securities Joint Stock Company, the research has defined the main factor influencing to the quality of securities service at VNDIRECT and the current situation with strengths and weaknesses in the performance of the company. Therefore, several recommendations are suggested to not only deal with the problems existing in VNDIRECT, but also to maintain and improve the currently performance to meet customers’ demand, which is increasing day by day The results suggest some direction to improve the customer service quality for individual customers at VNDIRECT as below:
Improving the human resource of the company: recruitment process, job performance assessment, training and promotion.
Improving the customer service: improve the customer hotline and call center, improve the professional performance to take care to each individual customers and provide them with pleasure and satisfaction while making transactions and experiencing services at VNDIRECT.
To uphold our position as a technology leader, we continuously enhance our management and transaction systems, optimize our website, and improve our products and services We focus on integrating the latest technological advancements to deliver innovative solutions that meet customer needs and ensure a seamless, efficient experience.
Improving the effectiveness of marketing activities to increase the trust of customers with VNDIRECT brand name.
RECOMMENDATIONS AND SOLUTIONS TO IMPROVE THE
5.2.1 Improving human resources and competence of staff
Being the direct provider of VNDIRECT’s service for the customers, the staff and their competence plays important role to ensure that customers are delighted with the service experiences at VNDIRECT In 2012, the number of employees increased significantly in a short time, for example the number of brokers increased from 50 to
Effective management and training of VNDIRECT’s 170 employees begin with careful applicant selection, ensuring they possess both technical securities knowledge and essential interpersonal skills such as communication, persuasion, and negotiation Empathy and responsiveness are crucial for delivering personalized service, understanding customer investment needs, and promptly addressing their concerns, thereby building trust and confidence in VNDIRECT Providing quick, efficient responses to customer orders and complaints enhances service quality and customer satisfaction Continuous staff training, including courses led by managers and experienced staff, is vital to improve product knowledge, customer service skills, and overall company understanding, fostering a positive work environment where employees can grow and contribute more effectively.
Furthermore, salary and rewarding policy is suggested as a method to encourage employees and departments to perform much more efficiently in their tasks.
5.2.2 Improving and utilizing technology advantages
It is quite obvious that VNDIRECT has an advantage in terms of technology to provide the innovative products and services for the customers and their transactions experiences and it is fortunate that customers are satisfied with the modern infrastructure and facilities at VNDIRECT However, they still need to improve to enhance the performance as technology is changing day by day and it is unpredictable that one day other competitors might surpass VNDIRECT
VNDIRECT should redesign its website to enhance user-friendliness and accessibility, addressing the low customer feedback it currently receives The website's existing layout is poorly organized, causing confusion among first-time visitors who struggle to find service information To improve customer awareness and build trust, VNDIRECT must update and re-arrange its website content for clearer navigation and a more professional appearance.
Second, VNDIRECT should upgrade its information technology system, as well as comprehensive data to provide customer with document that all customers could ease to access everywhere In 2015, there was several times that the system of VNDIRECT was broken down for a period of time and it caused troubles for customer when making transactions It is essential to maintain a sustainable basis because most of customers make securities transactions by online website. Therefore, it is also suggested that the IT department should also increase its number of staff to meet all requirement of customers.
Third, the transactions products and supporting products should be improved not only by quantity but also qualities Currently, the consulting products and services do not have much differentiation feature compared to other companies The only noticeable consulting service is the brokerage service In order to overcome this problem, the company should provide customers with tools with useful technical analysis or forecasting the stock market By providing customer with wide range of product variety, the value that VNDIRECT bring for their customers would also increase and make them feel the fee of VNDIRECT services more reasonable.
Fourth, the customers’ somehow do not satisfied with the long procedures to register an account at VNDIRECT The paperwork should be reduced and replaced by online procedures to bring convenience to the customers It is true the in the industry related to financial like stock exchange, the issue of securities to protect customer information is the most important one However, As many companies has adopted the “online wallet” – a kind of application help to make payment only by scanning smartphone, VNDIRECT’s IT department should consider to develop a method to replace paperwork as much as possible without worrying to lost customer’s information.
Finally, as a company leading in technology in the industry, VNDIRECT should extend its variety of cutting-edge products by providing smartphones applications Nowadays, the number of smartphone users is blooming as people tend to have a personal mobile device for their own Therefore, having a mobile app which helps customer to directly make transactions by touching their phone would provide them a pleasure experience and give VNDIRECT another competitive advantage compare to other securities companies Suggested applications are stock chart, news, analyzing tools and making buying or selling securities transactions.
In order to support customer in much better way, VNDIRECT Securities should collect and store customer’s information to build sufficient database This would not only have them to manage their customer securities account more efficient but also help the company to understand each individual customers, in order to provide them with proper services Several recommendations are:
Establish an information desk to efficiently collect and manage customer opinions and complaints, enabling the company to gain valuable insights into customers’ experiences This allows the business to identify potential issues promptly and develop effective strategies to address operational challenges, ultimately enhancing customer satisfaction and improving service quality.
Purchase appropriate and modern software to manage customer database, segment customers in different groups and applied CRM.
5.2.4 Improving the Hotline and Call Center
The hotline and call center which having function to receive customers’ orders or complaints have received some low rated feedback Some people said that they could not even contact to the hotline staff through the online chat on website, because of the instability of the system It is essential that the telephone hotline work efficiently to handle the large number of transactions order making through the Call Center Thus, VNDIRECT should increase the number of the hotline staff as well as fix the old system of online support on website.
5.2.5 Improving marketing strategies and creating brand image
Currently, VNDIRECT Securities Company remains relatively unknown beyond existing account holders, highlighting the need to boost brand awareness To attract new target customers such as students and housewives interested in financial investments, VNDIRECT should strengthen its image as a trustworthy securities firm capable of generating profits Investing in online advertising on popular financial websites and social media platforms can effectively increase VNDIRECT's visibility among a broad internet audience This strategic approach will help enhance brand recognition and promote the company's specialized products and services to a wider consumer base.
5.2.6 Applying CRM system in management
Customer relationship management (CRM) system is a useful application to help tracking on every activities of customers – from opening account, starting to trade securities to analysis their transactions However, this system is currently abandoned by VNDIRECT for a long period of time Therefore, it is suggested thatVNDIRECT should improve and utilized the CRM system in order to find new customers, gain their trust, maintain the relationship with loyal customers or attract the old customers who have not used VNDIRECT services for a long time to comeback with VNDIRECT.
In today's highly competitive business environment, organizations prioritize customer retention over acquisition to achieve sustainable growth To gain a competitive advantage, VNDIRECT must analyze the key factors that influence customer service quality, aiming to enhance performance and boost customer satisfaction This focus on improving service quality at VNDIRECT Securities Company involves identifying relevant factors, assessing their impact, and evaluating the current state of customer services Based on these insights, several strategic recommendations are proposed to elevate VNDIRECT’s customer service quality and strengthen its market position.
The research conducted the survey with 123 customers and in-depth interview with 04 managers of VNDIRECT After collecting and analyzing the data,
05 factors influencing the customer service quality for individual customer at VNDIRECT was discovered, as well as their impact level With the hope that thesis in general and the recommendations suggested in particular would be useful, I would like to dedicate the result of my study to improve and enhance the service quality of securities services at VNDIRECT.