Microsoft Word CONTENT doc MINISTRY OF EDUCATION AND TRAINING UNIVERSITY OF ECONOMICS HOCHIMINH CITY NGUYỄN THỊ PHƯỢNG KHÁNH MASTER’S THESIS In Finance Banking Ology Code 60 31 12 Supervisor Associate[.]
INTRODUCTION
Rational of the study
Financial institutions, particularly banking plays an important role in economic development of almost countries in the world and Vietnam is not an exception
The Vietnam banking industry has experienced significant growth in recent years, closely tied to the country's socioeconomic development Banks across Vietnam have expanded their operations by establishing new branches nationwide and introducing innovative services to meet evolving customer needs Retail banking has become an increasingly attractive sector for both domestic and foreign banks, offering considerable market potential that remains largely untapped.
With a population of 86 million, Vietnam has seen a significant rise in demand for retail banking services, driven by increasing income levels and rapid economic growth in recent years This surge is particularly evident since Vietnam's accession to the WTO, which has accelerated economic development and boosted consumer spending As a result, the retail banking sector in Vietnam is experiencing substantial growth, highlighting the growing financial needs of its expanding middle class.
This is a critical opportunity and challenge for Vietnamese bankers to attract new customers and retain existing ones Increased customer base directly correlates with higher bank profits, making effective customer acquisition and retention essential for financial success.
Satisfying customers is the priority target in order to get the success of a firm
Customer satisfaction is essential in today’s highly competitive business environment, serving as a critical factor for banks to retain existing customers and attract new clients Prioritizing customer satisfaction enhances loyalty, boosts reputation, and drives long-term success in the banking industry.
In addition, retail banking industry is facing a stressful competition among domestic banks and foreign banks as the globalization and world integration
Banks must prioritize customer satisfaction to ensure long-term survival and sustainable growth in a competitive financial landscape Focusing on enhancing customer experience can lead to increased loyalty and positive word-of-mouth, which are vital for business expansion Delivering exceptional service and addressing client needs effectively are key strategies for banks aiming to thrive in a dynamic market environment.
Statement of the problem
Domestic banks have long recognized the importance of developing comprehensive retail banking services to attract and retain customers They have invested in advanced core banking software, integrated new technologies, expanded their branch networks, and introduced innovative services to enhance customer experience and grow their market share.
In today's highly competitive banking industry, the expansion of distribution channels across all banks has led to increased product differentiation challenges As new services are rapidly matched by competitors, banks struggle to stand out in the market Customer satisfaction becomes a crucial tool for banks to gain and sustain a competitive advantage amidst this dynamic environment.
Customer satisfaction significantly influences repeat business and positive word-of-mouth referrals, boosting brand reputation Satisfied customers are more likely to reuse services and recommend them to others, fostering organic growth Conversely, unhappy customers tend to switch to competitors and spread negative reviews, potentially damaging the brand's image Therefore, prioritizing exceptional service quality is essential for customer retention and positive advertising.
Customer satisfaction is shaped by several key factors, including product quality, price, and service quality Personal and situational factors also play a significant role in influencing how customers perceive their experience Additionally, product diversification and uniqueness are critical in meeting customer expectations and enhancing overall satisfaction.
According to Lewis (1993), service quality plays a crucial role in establishing a competitive advantage within the service industry In the banking sector, high service quality significantly influences customer satisfaction, making it a vital factor for success Therefore, bank management continuously seeks to differentiate their offerings from competitors by prioritizing service quality to enhance customer experience and loyalty.
This study examines determinants on customer satisfaction with focus on service quality dimensions of retail banking services in Vietnam commercial banks in
Ho Chi Minh City is the economic, social, and educational hub of South Vietnam, featuring a large and diverse population The city hosts most of the country's banks and financial institutions, making it a vital center for business and commerce Its rapid development positions it as a key driver of Vietnam’s overall growth and prosperity.
Research Objective
The aims of this study as following:
- To identify main factors of customer’s perception on customer service quality in Vietnam retail banking sector
- To measure the effects of these key factors on the overall customer satisfaction in Vietnam retail banking sector
- To recommend some solutions to increase customer satisfaction.
Research question
The study is set to answer following questions:
- What are the key factors of customer’s perception on service quality of retail banking services in Vietnam commercial banks?
- How can these factors influence on customer satisfaction?
- What the recommendations should be needed to improve customer satisfaction in Vietnam commercial banks?
Scope and limit of the research
This research focuses exclusively on individual customers residing in Ho Chi Minh City who utilize retail banking services from seven commercial banks operating in the region Due to time constraints, the study's findings are limited to Vietnam's commercial banking sector and are based solely on the data collected from these banks The insights gained from this research provide a targeted understanding of customer behavior within these specific institutions, offering valuable implications for banking strategies in Ho Chi Minh City.
Research methodology
Data was collected from annual Vietnam commercial banks reports, from internet, involved books and previous related research
Qualitative research through in-depth customer interviews reveals key factors influencing satisfaction and dissatisfaction in retail banking services Interviews with 30 retail banking customers highlight critical service quality dimensions, including tangibles, employee attitude and willingness to help, reliability in providing accurate information and timely services, empathy, technology, waiting times, interest rates, and transaction costs These insights inform the development of a detailed questionnaire for the official study, ensuring a comprehensive understanding of customer perceptions and expectations.
Quantitative research was conducted by distributing questionnaires directly to individual customers of seven commercial banks in Ho Chi Minh City through email and online platforms The collected data was analyzed using SPSS version 16.0 to assess customer satisfaction levels.
The structure of the research
This research includes five chapters:
This introduction provides an overview of the research, including its rationales, problem statement, objectives, key research questions, scope and limitations, and methodology It offers a comprehensive foundation for understanding the purpose and structure of the study, ensuring clarity for readers and aligning with SEO best practices for academic content.
LITERATURE REVIEW
Vietnam retail banking sector
Vietnam’s banking system has experienced significant growth over the past two decades, driven by the country’s rapid economic development It includes key institutions such as the Vietnam Bank for Social Policies, the Vietnam Development Bank, three state-owned commercial banks, forty joint-stock commercial banks, five joint-venture banks, five 100% foreign banks, and 36 branches of international banks This diverse banking landscape supports Vietnam’s expanding economy and enhances financial inclusion across the nation.
Table 2.1: Quantity of banks from 1991 to 2009
Foreign bank and branches of foreign bank 0 8 18 24 26 26 29 31 41 41 41
The data in Table 2.1 highlights that the Vietnamese banking sector is primarily focused on commercial joint-stock banks and foreign banks, showcasing its attractiveness and growth potential to both domestic investors and international financial institutions The retail banking segment is particularly promising, attracting significant interest from bankers worldwide due to its lucrative opportunities and expanding market.
Retail banking involves direct transactions between banking institutions and individual consumers, primarily offered by commercial banks These financial institutions provide a wide range of personal banking services, including deposit accounts such as savings, checking, and certificates of deposit with various maturities Additionally, retail banking includes loan products like mortgages and personal loans, along with payment methods such as debit and credit cards.
Today, retail banking has become highly streamlined through electronic means, primarily via Automated Teller Machines (ATMs), facilitating quick and convenient banking transactions for customers.
Modern banking services offer convenient, digital solutions such as ATMs for cash withdrawals and deposits, providing easy access to banking facilities Virtual retail banking, or internet banking, enables customers to perform financial transactions like money transfers, bill payments, and funds transfers from anywhere with an internet connection, offering unparalleled convenience Home banking services allow users to execute almost all banking transactions remotely without visiting the bank physically Additionally, phone banking provides customers with 24/7 access to account information, foreign exchange rates, interest rates, and other banking services via telephone, ensuring seamless financial management anytime, anywhere.
Retail banking services are essential for banks in open economies, providing a stable revenue stream, increasing competitiveness, reducing risks, and expanding market share It also benefits the economy by lowering transaction costs, promoting a cashless society, and stimulating business activities Retail banking enhances people's lives through the efficient utilization of capital and offers diversified, convenient, and secure financial services Consequently, developing retail banking is an inevitable trend for both international and Vietnamese banks seeking growth and stability.
Vietnam is considered as an attractive retail banking market as the whole market potential, it is clear that there is a huge opportunity for new entrants
Firstly, it has a strong reputation for both political stability and a prosperous business environment among Asian nations and became a member of WTO in Jan
2007, under which Vietnam committed to integrate into the world market resulted in the five 100% foreign banks currently established in Vietnam
Vietnam's growing population and increasing income levels are significantly expanding consumer markets, yet many people, especially in rural areas, remain unaware of retail banking services Despite Ho Chi Minh City’s large population and high bank density, only about 17% of residents currently have bank accounts and engage in non-cash transactions, highlighting the need for greater financial inclusion and awareness efforts to tap into this potential market.
Vietnam’s population of approximately 86 million includes over 60% of young people under 33 years old, whose dynamic shopping behaviors drive demand for innovative credit services This demographic trend presents significant opportunities for both foreign and domestic banks to expand their retail banking offerings Currently, Vietnamese commercial banks capture only about 10% of the total retail banking market, with international banks earning an average turnover rate of 6% to 12%, much lower than the approximately 50% rate in developed countries Consequently, there remains a sizable, attractive market with ample room for increased competition and growth in retail banking services.
The retail banking sector in Vietnam is facing intense competition due to the entry of foreign banks and efforts by domestic banks to maintain and grow their market share Currently, domestic banks are considered small compared to regional counterparts, with capital levels of only a few billion VND The State Bank has mandated these banks to increase their chartered capital to at least 3 million VND by the end of 2010, prompting consolidation trends where smaller banks may merge with larger ones to meet regulations and enhance market competitiveness Challenges such as limited service offerings and weak competitive capacity hinder domestic banks from effectively competing in the market Meanwhile, foreign banks operating in Vietnam are predominantly from the top 1000 global banks, offering substantial resources, advanced technology, and high-quality services To compete, domestic banks have invested in modern technology, restructured management, diversified distribution channels, and expanded networks, focusing on developing innovative financial services like card services, online banking, savings accounts, and consumer loans to attract sophisticated customers In terms of branch networks, Agribank leads with 115 branches, followed by BIDV with 103, VBSP with 65, VDB with 62, and MHB with 32 Joint-stock commercial banks such as Techcombank (38 branches), VIB (42), Sacombank (59), Eximbank (35), ACB (54), and EAB (28) have smaller branch counts, while none of the joint venture banks operate more than five branches, highlighting the ongoing structural and competitive evolution in Vietnam’s retail banking industry.
The retail banking market is rapidly evolving due to rising competition, diversification of products and services, and increased adoption of online channels Vietnamese commercial banks must focus on strengthening relationships with existing clients while also attracting and converting new prospects to stay competitive in this dynamic environment.
Customer satisfaction
Customer expectation is the ideals or feelings that a customer has about the product or service provided by a company based on what they need and expect from it
This explain why two customers use the same product or service but each of them has the different opinions about it depends on what he or she expected
Customer expectations are shaped by perceptions of products or services, influenced by previous experiences, advertising, word-of-mouth, competitor awareness, and brand image CustomersTypically have predefined standards that they compare with actual product or service performance to determine satisfaction Understanding and managing these expectations is crucial for service-oriented businesses, as meeting or exceeding them enhances customer satisfaction and prevents dissatisfaction.
Customer satisfaction is a critical issue for both marketers and consumer researchers, influencing consumer behavior and business success (Dabholkar et al., 1996; Fournier and Mick, 1999; Meuter et al., 2000) It reflects a customer's overall response to the level of fulfillment they experience, serving as a key indicator of their perception of whether their needs and expectations have been met (Oliver).
Customer satisfaction is a critical factor in business success, reflecting an overall customer attitude towards a service provider or product It is defined by Hansemark and Anbinsson (2004) as an emotional reaction based on the gap between customer expectations and actual experiences, fulfilling specific needs or desires Zeithaml and Bitner (2000) describe satisfaction as the customer’s evaluation of whether a product or service met their needs and expectations According to Kotler (2000), satisfaction involves a person's feelings of pleasure or disappointment resulting from comparing perceived performance to expectations Essentially, customer satisfaction responds to the discrepancy between prior expectations and the actual perceived performance after using a product or service.
2.2.3 The importance and benefits of customer satisfaction
In the 1960s, marketing shifted focus from product-centric to customer-centric approaches, emphasizing that customers are the core of all marketing efforts Zairi (2000) highlights that “Customers are the purpose of what we do,” underlining the mutual dependence between businesses and their customers To succeed in a competitive marketplace, organizations must prioritize understanding and meeting customer needs and wants, as customer satisfaction not only drives business success but also serves as a sustainable competitive advantage.
Companies with satisfied customers have a strong opportunity to convert them into loyal clients who make repeat purchases over time, thereby driving sustainable profit growth (Evans & Berman, 1997) Customer loyalty is essential for the success of any business, as satisfied customers are less price-sensitive, willing to pay a premium for new products or services, and actively promote the company through positive word-of-mouth among their social circles (Hoyer & Maclnnis, 2001) Additionally, retaining satisfied customers reduces serving costs compared to acquiring new ones and minimizes expenses related to marketing and promotion efforts, ultimately enhancing the company's reputation and profitability The benefits of customer satisfaction are summarized effectively in Figure 2.1.
Figure 2.1: The Benefits of customer satisfaction
Customer Service quality
Excellent customer service is essential for meeting and exceeding customer expectations, fostering loyalty and repeat business It involves providing support before, during, and after a purchase to ensure a seamless experience Delivering outstanding service tailored to customer needs and preferences helps businesses build strong relationships and retain customers long-term.
Customer service involves a series of activities aimed at enhancing customer satisfaction by ensuring that products or services meet customer expectations (Turban et al., 2002) It is a crucial component of competitive advantage, adding value to maximize overall benefits for customers Providing excellent customer service helps businesses differentiate themselves in the marketplace and build long-lasting customer loyalty.
Most market products consist of both tangible goods and intangible services, with services playing a vital role in industries like banking, where they are essential for retaining existing customers and attracting new ones Key characteristics that distinguish services from physical products include intangibility, inseparability, variability, and perishability, making them inherently different from tangible items These features often make it challenging for customers to evaluate services during pre-consumption, consumption, and post-consumption stages of decision-making (Legg and Baker, 1996) A thorough understanding of these service characteristics enables organizations to enhance customer experience, improve service performance, and deliver higher-quality customer satisfaction.
- Intangibility: service can not be seen, touched, or tasted making consumers feel difficult to measure service value and quality
Inseparability is a key characteristic of services, meaning they are produced and consumed simultaneously, unlike goods that can be manufactured and stored for later use This implies that service providers are an integral part of the service delivery process, directly impacting customer experience and satisfaction For example, a bank teller plays a crucial role in the service offering, and their performance can significantly influence the overall quality of the service provided.
- Variability: as service is produced and consumed simultaneously and provider becomes a part of service offering so the service is never exactly repeated
- Perishability: it is impossible to store services in inventory as production and consumption are at the same time
In today's business landscape, organizations increasingly recognize the importance of customer-centric philosophies to enhance satisfaction A key challenge they face is effectively managing service quality, which plays a crucial role in ensuring positive customer experiences and loyalty.
Service quality is a crucial prerequisite and key determinant of customer satisfaction, playing a vital role in building long-term loyalty According to Spreng and Machoy (1996), high service quality serves as an essential indicator of customer satisfaction, directly impacting business success Focusing on service quality allows organizations to differentiate themselves from competitors and establish a sustainable competitive advantage, as emphasized by Morre.
Service quality is a subjective assessment made by customers, comparing their expectations of the service they desire with the actual service received (Gefan, 2002) According to Parasuraman et al (1985, 1988), service quality is determined by the gaps between customers’ expectations and their evaluations of the provider’s performance.
2.3.4 Gap model of service quality
There are many researched models done to adjust the quality of services
However, the work of Parasuraman, Zeitham and Berry (1985) is the most popular with the using of 5 major gaps:
Gap 1: difference between customer expectations and management perceptions of customer expectations This is the gap between what customers want and what managers think they want
Gap 2: difference between management perceptions of customer expectations and quality specifications set for service delivery
Gap 3: difference between the quality specifications set for service delivery and the service actually delivered
Gap 4: difference between the actual quality of service delivery and the quality of service delivery described in the firm's external communications
Gap 5: difference between customer expectations and perceptions For instance, the firm promises to deliver in its communication with customer, then if a promise is broken by the organization (what it is actually delivered to the customer), the customer will perceive service quality to be lower than expected nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Firms are increasingly focusing on strategies to close the five gaps in service quality to better meet customer expectations The five gaps model, developed by Parasuraman and colleagues in 1985, highlights the specific areas where service delivery can fall short Addressing these gaps enables organizations to enhance overall service quality and improve customer satisfaction.
Figure 2.2: Model of service quality gaps (Parasuraman at el., 1985)
Measuring service quality is essential for identifying areas where improvements are needed based on user feedback It enables you to deliver services that better meet customer expectations and enhances overall user satisfaction Additionally, assessing service quality allows for meaningful comparisons over time and against competitors, helping your organization stay competitive and continuously improve its offerings.
Transition of Perceptions into Service Quality Specs
Management Perceptions of Consumer Expectations
Service Delivery (Including pre- and post-contacts)
GAP 2 nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg model of Parasuraman at el., (1985) is considered as the most used-approach to measure service quality in comparing customers’ expectations and their perceptions based on the actual service delivered They evolved a set of ten dimensions including:
- Reliability: Ability to perform the promised service dependably and accurately
- Responsiveness: Willingness to help and respond to customer needs
- Competence: having the required skill and knowledge to provide the service
- Access: the ease and convenience of accessing the services such as opening time, location, alternative methods to access services, etc
- Courtesy: politeness, respect, consideration, and friendliness of staff at all level
- Communication: keeping customers informed, understanding well service and listening to them
- Credibility: trustworthiness, believability, reputation and image of the service provider
- Security: physical safety, financial security and information confidentiality
- Understanding customers: knowing customers and their needs
- Tangibles: appearance of physical facilities, equipment, individual and communication materials
These 10 dimensions comprise all aspects of the service but it is so complex in measurement, then Parasuraman at el., (1988) reduced the ten dimensions to five specific dimensions after finding out the correlation among the original ten dimensions
- Tangibles: appearance of physical facilities, equipment, individual and communication materials
- Reliability: Ability to perform the promised service dependably and accurately
- Responsiveness: Willingness to help and respond to customer needs
Assurance is demonstrated through the knowledge, courtesy, and professionalism of employees, who effectively convey the trust and confidence that the firm instills in its customers Providing exceptional assurance builds customer confidence, fosters loyalty, and enhances the company's reputation.
- Empathy: Caring, individualized attention the firm provides its customers.
RESEARCH DESIGN
Research model
Based on a comprehensive review of key dimensions in existing literature, the quality of retail banking services is characterized by six essential dimensions These dimensions form the core of the proposed model, which is specifically tailored to suit the context of Vietnam's commercial banks The model aims to enhance service quality by addressing these critical factors, as illustrated in Figure 3.1.
Reliability is the ability of the service provider to deliver promised services consistently and accurately When customers perceive that the services meet or exceed expectations, they experience higher satisfaction and perceive the service as high quality Therefore, ensuring service reliability is crucial for enhancing customer satisfaction and building trust in the brand.
H6 nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
- H1: Reliability has a positive impact on customer satisfaction in retail banking sector in case of Vietnam commercial banks
Responsiveness is key to customer satisfaction, as it reflects the service provider’s willingness to assist and deliver prompt support Customers perceive high responsiveness as an indicator of quality service, leading to increased satisfaction Therefore, the hypothesis is that greater responsiveness from providers positively influences customer satisfaction.
- H2: Responsiveness has a positive impact on customer satisfaction in retail banking sector in case of Vietnam commercial banks
Assurance is a critical aspect of service quality, reflecting the service provider's ability to build trust and confidence with customers Since customers often find it challenging to evaluate service quality without prior experience, their level of trust significantly influences their perception of the service Enhancing assurance can lead to higher customer satisfaction and loyalty by establishing a reliable and trustworthy service environment.
The more customers’ trust the service provider, the better the customers’ perception on the service quality then the higher satisfaction customers get
Therefore, the third hypothesis is:
- H3: Assurance has a positive impact on customer satisfaction in retail banking sector in case of Vietnam commercial banks
Providing personalized and attentive service, along with convenient branch locations and accessible ATM machines, significantly enhances customer satisfaction When customers feel valued and receive tailored support, their overall experience improves, leading to higher satisfaction levels Ensuring easy access through flexible opening hours and strategically situated branches fosters positive perceptions of the bank's service quality, encouraging customer loyalty.
Therefore, the fourth hypothesis is:
- H4: Empathy has a positive impact on customer satisfaction in retail banking sector in case of Vietnam commercial banks
During the service delivery process, client is directly interacting with bank’s staff, physical facilities and other elements such as communication materials
Since services are intangible, customers assess service quality based on tangible cues such as physical facilities, equipment, personnel appearance, and communication materials A positive perception of these tangible elements enhances customer satisfaction Therefore, the hypothesis is that the quality of tangible cues directly influences overall customer satisfaction with the service.
- H5: Tangibles has a positive impact on customer satisfaction in retail banking sector in case of Vietnam commercial banks
Customers tend to feel more satisfied when they perceive that service providers charge reasonable or even lower costs, as well as pay fair or higher interest rates This positive perception of cost and interest contributes significantly to increased customer satisfaction Therefore, the hypothesis is that lower costs and fair interest rates positively influence customer satisfaction levels.
- H6: Social responsibility has a positive impact on customer satisfaction in retail banking sector in case of Vietnam commercial banks.
Research design
This study investigates the key factors of service quality that influence customer satisfaction in Vietnam's retail banking sector, specifically focusing on commercial banks in Ho Chi Minh City The proposed model identifies six determinants of service quality, which are thoroughly evaluated for their impact on customer satisfaction Findings reveal how these service quality variables directly affect customer satisfaction levels within Vietnamese commercial banks Based on the analysis, the study offers strategic recommendations for banks to enhance customer satisfaction and foster long-term loyalty.
This research is conducted in the two steps comprises qualitative research and quantitative research as following:
Qualitative research was conducted through face-to-face interviews with bank customers to identify the key factors influencing service quality for the questionnaire This model is based on previous theories but may have some adaptations when applied to the retail banking sector in Vietnam.
Quantitative research was conducted by distributing questionnaires directly to customers of seven Vietnamese commercial banks, as well as via email and online platforms, to collect comprehensive data for official analysis.
- Basic concepts of service quality and customer satisfaction
- Initial model (based on previous study and deep interview)
- Hypotheses nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
This research process begins with identifying the research problems and defining clear objectives and questions A comprehensive literature review is conducted, focusing on service quality, customer satisfaction, and the SERVQUAL model's five dimensions, which is widely recognized in the service industry Insights from in-depth interviews with banking customers help develop an initial model with six hypotheses Data collection involves distributing 200 questionnaires to banking customers, providing the basis for analysis The collected data is examined using Cronbach's Alpha and Exploratory Factor Analysis (EFA) to refine the model by removing unsuitable factors and variables Finally, regression analysis is employed to explore the relationships between independent and dependent variables, validating the proposed model.
The result of the research is found out and we can give out some conclusions and recommendations based on that result.
DATA ANALYSIS AND FINDINGS
Sample Characteristics
A total of 200 questionnaires were distributed to customers of seven major commercial banks in Ho Chi Minh City, including Sacombank, Vietcombank, ACB, EAB, Techcombank, BIDV, and Agribank Of these, 133 questionnaires were successfully collected and used for data analysis The collected data were analyzed using SPSS 16.0 software to ensure accurate and reliable results This study provides valuable insights into customer perceptions and satisfaction with retail banking services in the region.
The sample demographic characteristics reveal that males and females are almost equally represented, with 51.9% male and 48.1% female The majority of respondents (69.2%) are aged between 25 and 40 years, while 26.3% are under 25, and 4.5% are over 40 Regarding marital status, 58.6% of participants are single, and 41.4% are married The average monthly income of respondents is modest, with 42.1% earning between 6 to 10 million VND, and 38.3% earning less than 5 million VND.
Office staff earning an average income of 6 to 10 million VND are the primary users of retail banking services, accounting for 54.9% of customers Managers represent 15%, students 12%, workers 5.3%, homemakers 1.5%, retirees 0.8%, and other job categories comprise 10.5% of retail banking clients.
Approximately 48.9% of customers utilize banking services 1 to 2 times each month, while 28.6% make 3 to 4 transactions, and 20.3% conduct more than 4 transactions Vietcombank and EAB are the leading commercial banks in customer service usage, with 57 and 56 clients respectively demonstrating high engagement levels.
The Vietnamese government encourages organizations to pay employee salaries via ATM cards to promote cashless transactions Currently, out of 133 surveyed customers, 121 utilize bank card services, demonstrating widespread acceptance Additionally, 61 customers hold deposit accounts, highlighting the growing trend toward digital banking in Vietnam.
Student Home-maker Worker Office staff Manager Retiree Other
Average income per month (VND/month)
No 1-2 times 3-4 times More than 4 times
Times of transaction per month
Loans Yes 29 21.8 nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Statistical Results
Table 4.2 : Descriptive statistics of service quality measurement
N Mean Std Deviation Minimum Maximum
Sor.23 133 3.31 971 1 5 nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
According to Table 4.2, the measurement of bank reliability (Rel.1) consistently shows a high value with a mean of 4.02, indicating customer satisfaction and trust in the bank’s promised services Several variables related to Reliability (Rel.3, Rel.4, Rel.5), Assurance (Ass.11), and Tangibles (Tan.21) are close to a score of 4, reflecting the bank’s efforts to meet rising customer demands through modern equipment and well-trained staff to build confidence and reduce transaction risks However, other service quality variables score between 3.04 and 3.69, suggesting that Vietnamese retail banking services are perceived at a medium level Notably, the lowest scores are associated with Empathy and Social Responsibility, highlighting customers’ perceptions that their benefits and individualized concerns are not sufficiently prioritized by the banks.
The descriptive statistical analysis of service quality measurement reveals that customer evaluations of retail banking services in Vietnamese commercial banks vary significantly Notably, certain service variables are highly valued by customers, indicating areas of strength within the banking sector These insights highlight the diverse perceptions of service quality and the importance of focusing on key factors that positively influence customer satisfaction.
Many customers express dissatisfaction with bank services, as evidenced by mean scores below four, indicating they do not fully agree with the service quality This suggests that a significant majority of customers remain unsatisfied, highlighting the need for banks to improve their service standards to meet customer expectations.
Table 4.3 : Descriptive statistics of customer satisfaction measurement
Gen.26 133 3.27 845 1 5 nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
The mean overall customer satisfaction score, as shown in Table 4.3, indicates a medium to slightly above medium level, with all scores remaining below the four-point mark on the five-point Likert scale This suggests that customers are generally dissatisfied with Vietnamese commercial banks' services.
CONCLUSIONS AND RECOMMENDATIONS
Conclusions
This study provides a comprehensive overview of service quality in Vietnam's commercial banks, highlighting that the top three factors influencing customer satisfaction are Service Quality, Empathy, and Tangibles In today’s highly competitive banking industry, banks recognize that achieving customer satisfaction is essential for fostering loyalty and increasing profitability The findings indicate that customers are most satisfied when service quality is consistently high and effectively managed, emphasizing the importance of delivering excellent service to gain a competitive edge.
Meeting customer demands and requirements leads to increased satisfaction, encouraging customers to stay longer with the bank, make more purchases, and refer others This is why bankers prioritize high service quality to foster long-term relationships and enhance customer loyalty, ultimately driving business growth.
This study examines customer perceptions and evaluations of service quality in Vietnam's commercial banks, aiming to draw attention from banking leaders to the importance of customer-centric strategies Customer satisfaction is directly influenced by service quality, which plays a crucial role in retaining clients To enhance customer satisfaction, banks must focus on key service quality factors, including three dimensions with thirteen items, where Service Quality is most significant with a density of 0.363, followed by Tangibles at 0.253 and Empathy at 0.233—each positively impacting customer satisfaction.
Serving quality has the strongest positive impact on customer satisfaction, as it builds customer confidence in the bank’s ability to deliver error-free services It reflects the bank’s genuine care, professional attitude, and staff behavior in providing services and resolving issues effectively High service quality enhances customer trust and loyalty, emphasizing the importance of attentive and reliable customer care.
Tangibles, which refer to the physical facilities and decor, significantly influence customer satisfaction by creating a comfortable and welcoming environment A well-maintained and professional appearance of the bank’s facilities and employees enhances the customer's initial impression, fostering trust and confidence in the service provided Ensuring that physical aspects are neat, modern, and inviting is essential for establishing a positive customer experience.
Beside that, customers will feel better if they easily understand and be familiar with the services stated on the brochures or website
Empathy significantly impacts customer satisfaction by highlighting the bank employees' ability to understand and address customers' needs Demonstrating genuine empathy ensures customers feel valued and confident that their benefits are always a top priority, fostering trust and loyalty.
The study indicates that the service quality of retail banking services in Vietnamese commercial banks is generally moderate, reflecting customer dissatisfaction With intense competition in the Vietnamese banking sector, it is essential for banks to implement strategic improvements to enhance customer satisfaction Prioritizing the optimization of key determinants—such as service quality, customer engagement, and responsiveness—is crucial Therefore, developing targeted solutions to boost these factors can significantly increase customer satisfaction and strengthen competitive advantage.
Recommendations
In order to satisfy customers, bankers have to pay more attention to service quality and offer customer-oriented services to enhance customer satisfaction
The dimensions of “Serving Quality” and “Empathy” each encompass ten key items, primarily focusing on employee behaviors, highlighting the vital role of human resources in retail banking operations in Vietnam This emphasizes that the success of retail banking in the region relies heavily on employee performance and their ability to provide high-quality, empathetic service to customers.
M K Brady and J J Cronin Jr., customer’s perceptions of service quality will be impacted by customer – oriented behaviors of employees Employees directly influence to customer’s perception, customer feelings through their willingness to help and serve customers with 100% correct, their personal attention, listen, adapt and be flexible in delivering what individual customers need These inspire the safe and confident feelings to customers The important thing is how bank leaders can optimize human performance, effort, thinking and innovation which make the services more different or better nghiep do wn load thyj uyi pl aluan van full moi nhat z z vbhtj mk gmail.com Luan van retey thac si cdeg jg hg
Vietnam’s commercial bank staff who regularly interact with customers must undergo ongoing, in-depth training to enhance their professional knowledge and communication skills Regular organization of training courses in service excellence, communication, and professionalism is essential to ensure staff can confidently assist customers Equipped with a friendly attitude, expert knowledge, and professional behavior, bank staff can build trust and foster customer confidence, ultimately improving overall customer satisfaction and loyalty.
Bank managers should communicate the organization’s customer-focused objectives clearly and encourage employees to share their ideas and insights By fostering open communication and active listening, managers can inspire employee enthusiasm, diligence, and innovation, leading to improved services that enhance customer satisfaction, trust, and a sense of safety.
Bank staff should proactively inform customers about ongoing promotions and benefits during the transaction process They must focus on enhancing customer satisfaction by clearly explaining available offers and assisting customers in selecting the most convenient and beneficial services Providing personalized guidance ensures customers receive maximum value from their banking transactions, ultimately improving their overall experience and trust in the bank.
Bank staff should actively listen to customers and engage with a friendly attitude to understand both positive and negative feedback regarding service quality By doing so, they can identify areas for improvement and effectively enhance their service capabilities, ultimately boosting customer satisfaction and loyalty.
In the realm of technology, "Tangibles" refer to the physical aspects of Vietnam’s commercial banks that customers perceive during their interactions Enhancing these tangibles is crucial for maximizing customer satisfaction This involves professionally arranged and conveniently located physical facilities that create a comfortable environment for transactions Additionally, banks should equip and upgrade modern, advanced technology to reduce errors and minimize waiting times, thereby improving service efficiency and increasing customer confidence.
To ensure long-term success, bank leaders must develop strategies focused on delivering exceptional service quality through their people This includes hiring the right talent, nurturing employee potential through development programs, and implementing effective retention practices to keep the best employees Building a skilled and motivated workforce is essential for maintaining high service standards and enhancing customer satisfaction.
Research limitation
This research highlights the crucial role of service quality and identifies the key factors that most significantly impact customer satisfaction It also offers valuable solutions to enhance service quality and boost overall customer experience However, the study acknowledges certain limitations that should be considered for future research to achieve more comprehensive insights and improvements.
The study's first limitation pertains to the sample size, which was relatively small with only 133 participants due to time constraints Additionally, the research focused solely on customers of seven commercial banks in Ho Chi Minh City, limiting the generalizability of the findings to the broader retail banking sector in Vietnam.
Future research should aim to include a larger and more diverse sample size across various commercial banks and cities throughout Vietnam to enhance the generalizability of the findings Expanding the scope to encompass different regions will provide more comprehensive insights, making the results more applicable nationwide Conducting studies with broader respondent pools in multiple locations is a key direction for future research to improve validity and relevance.
Secondly, the study considers deeply the effect of factors of service quality on customer satisfaction only, and not measures the other components of satisfaction
This limitation suggest for the next study to consider other factors influence to customer satisfaction in Vietnam retail banking sector
This study primarily utilizes the SERVQUAL approach (Parasuraman et al., 1988) to assess service quality Future research should explore the application of other theories related to service quality to provide a more comprehensive understanding Incorporating diverse theoretical frameworks can enhance insights into service excellence and improve measurement accuracy in future studies.
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Interview Customers
1 Thông tin cá nhân a Họ và tên: b Giới tính: c Nghề nghiệp:
2 Anh/Chi hiện đang sử dụng dịch vụ của ngân hàng thương mại nào:
Bạn đang sử dụng dịch vụ nào trong các lựa chọn sau: gửi tiết kiệm, vay tiền, chuyển tiền, các dịch vụ thẻ như ATM và thẻ tín dụng, internet banking, phone banking, home banking hoặc các dịch vụ khác?
Các yếu tố ảnh hưởng đến sự hài lòng của khách hàng khi sử dụng dịch vụ ngân hàng bao gồm các yếu tố hữu hình như thiết kế bên ngoài và bên trong ngân hàng, cách bày trí trang thiết bị, hàng ghế chờ, ngoại hình và trang phục của nhân viên cùng các trang thiết bị hỗ trợ Chất lượng giao dịch thể hiện qua thái độ, phong cách phục vụ, tính chuyên nghiệp của nhân viên và thời gian chờ đợi được rút ngắn Mức độ tin cậy thể hiện khả năng cung cấp dịch vụ đúng yêu cầu, chính xác thông tin và thực hiện cam kết đúng hạn Sự thấu hiểu là sự quan tâm, sẵn sàng giúp đỡ khách hàng và giải quyết khiếu nại nhanh chóng theo cam kết Yếu tố công nghệ đề cập đến hệ thống thiết bị công nghệ hiện đại như máy ATM và các hệ thống hỗ trợ khác Chi phí và lãi suất cũng là những yếu tố quyết định sự hài lòng của khách hàng, cùng với các yếu tố khác có thể tác động đến trải nghiệm khách hàng tại ngân hàng.
Xin vui lòng liệt kê các yếu tố khiến anh/chị cảm thấy không hài lòng khi sử dụng dịch vụ ngân hàng, nhằm giúp chúng tôi cải thiện chất lượng dịch vụ Những phản hồi của bạn sẽ góp phần nâng cao trải nghiệm và đáp ứng tốt hơn các nhu cầu tài chính của khách hàng Hãy chia sẻ những vấn đề gặp phải như thủ tục phức tạp, thời gian chờ đợi lâu hoặc dịch vụ khách hàng chưa đáp ứng kỳ vọng để chúng tôi có thể phát huy những điểm chưa tốt và nâng cao chất lượng dịch vụ ngân hàng.
This research aims to assess how customers perceive and evaluate the quality of customer service provided by Vietnam commercial banks, with a focus on improving overall customer satisfaction The study targets bank customers in Ho Chi Minh City who use services from Sacombank, Vietcombank, ACB, EAB, Techcombank, Agribank, and BIDV Participants are invited to spend approximately 10 minutes sharing their experiences and opinions, which will provide valuable insights into service quality and help enhance customer satisfaction strategies within the banking sector.
Your responses to the bank service quality questionnaire are crucial for enhancing customer experiences Your input will directly contribute to ongoing improvements in banking services There are no right or wrong answers; every response is valuable and essential for this research Your participation helps banks identify areas for service improvement, ensuring better support for customers By sharing your honest feedback, you play a vital role in the continuous enhancement of banking service quality.
Thank you very much for your co-operation!
Please mark (X) corresponding to your answers
1.1 Gender Male Female Phone No.:………
This article categorizes individuals into different roles, including students, home-makers, workers, office staff, managers, retirees, and others with a specific designation Understanding these distinctions helps tailor content and services to various demographic groups Whether you are a student seeking educational resources, a retiree exploring new hobbies, or a professional aiming for career growth, recognizing these categories enables targeted communication For further information or to specify an additional role, please contact us via email at gmail.com.
≤ 5.000.000 VND 6.000.000 – 10.000.000 VND 11.000.000 – 15.000.000 VND 16.000.000 – 20.000.000 VND ≥ 20.000.000 VND
1.6 Presently, Which banks do you use their services?
1.7 Presently, What types of services do you use in the bank?
Deposits (checking accounts, savings accounts, certificates of deposit) Loans (mortgages, personal loans such as consuming loans, home loans, car loans, )
Transfers (money transfer, funds transfer) Card services (ATM, Visa card, Debit card, ) Internet banking (allows customer do transactions via internet such as: funds transfer, checking account information,…)
Home banking (allows customer do transactions at home instead of coming to the bank through internet or mobile phone such as: transfer, bill payment,…)
Phone banking (allows customer do transactions any where without coming to the bank through telephone such as: checking account information, interest rate, foreign exchange rate,…)
1.8 How many times do you usually have transaction with the bank per month?
To maintain consistency, scheduling updates 1-2 times per month is recommended, while posting 3-4 times per month can boost engagement For higher visibility, publishing more than four times per month is ideal Additionally, options such as "Other" allow for personalized scheduling preferences Regular updates help improve online presence and audience interaction.
Code The measure of customer satisfaction level
Strongly disagree Disagree Neutral Agree Strongly agree
Rel.1 The bank provide service as promised
Rel.2 When you have a problem, the bank shows a sincere interest in solving it Rel.3 The bank provides the service right at the first time
Rel.4 The bank promises to do something in a certain time
(card delivery time, problem solving time, etc) Rel.5 The bank’s documents maintains error-free records
Bank staff provide clear communication by informing customers exactly when services will be performed, ensuring transparency and trust They deliver services promptly, demonstrating their commitment to efficient customer care Always ready to assist, bank staff are willing to meet your demands, offering supportive and responsive assistance to enhance your banking experience.
Ass.10 The behaviors of bank’s staffs instill confidence in you Ass.11 You feel safe in your transaction with the bank Ass.12 The bank’s staffs are consistently courteous with you
Ass.13 The bank’s staffs have the knowledge to answer your questions
Emp.14 The bank’s staffs who deal with customer in a caring fashion Emp.15 The bank has your best interest at heart Emp.16 The bank’s staffs understand your specific needs
The bank offers convenient operating hours, ensuring accessibility for all customers Additionally, it has numerous ATM and branch locations strategically positioned to provide easy access and meet the diverse needs of its clients.
Tan.19 The bank has modern looking equipment
Tan.20 External and internal physical features are convenient and professional ( counter location, waiting-seat, etc)
Tan.21 The bank’s reception desk employees are appealing and neat appearance
Tan.22 The bank’s website and brochures are visually appealing and easily understanding
Sor.23 The bank always offers good services at reasonable cost / interest
Code The measure of customer satisfaction level
Extremely Satisfy Satisfy Neutral Dissati sfy Extremely Dissati sfy
Overall, you are satisfied with the bank’s service quality and the banking experience Your positive impression makes it likely that you would recommend the bank to others.
Tôi là sinh viên chương trình cao học của trường Đại học Kinh Tế Tp Hồ Chí Minh
Trong nghiên cứu này, tôi đang xác định nhận thức và đánh giá của khách hàng về chất lượng dịch vụ của các ngân hàng Việt Nam hiện nay Đối tượng khảo sát là khách hàng sinh sống, làm việc và học tập tại TP Hồ Chí Minh sử dụng dịch vụ tại các ngân hàng như Sacombank, Vietcombank, ACB, EAB, Techcombank, Agribank và BIDV Mục đích chính của nghiên cứu là hiểu rõ mức độ hài lòng và kỳ vọng của khách hàng về dịch vụ ngân hàng để nâng cao chất lượng và đáp ứng tốt hơn nhu cầu khách hàng.
Xin quý khách hàng dành khoảng 10 phút để chia sẻ ý kiến và kinh nghiệm khi sử dụng các dịch vụ ngân hàng, vì những phản hồi của quý vị đóng vai trò quan trọng trong việc nâng cao chất lượng dịch vụ ngân hàng Những chia sẻ chân thực và hữu ích của quý khách giúp ngân hàng hiểu rõ hơn về nhu cầu khách hàng, từ đó cải thiện trải nghiệm và cung cấp dịch vụ tốt nhất Hãy dành thời gian để góp phần vào việc nâng cao chất lượng dịch vụ ngân hàng bằng những ý kiến đóng góp quý báu của mình.
Xin chân thành cám ơn quý khách hàng!
Xin quý khách hàng đ ánh d ấ u g ạ ch chéo (X) vào t ừ ng câu tr ả l ờ i t ươ ng ứ ng
Phần 1: Thông tin cá nhân
1.9 Giới tính Nam Nữ Điệnthoại:
1.10 Tình trạng hôn nhân Độc thân Đã có gia đình
Sinh viên Nội trợ Công Nhân Nhân viên văn phòng Quản lý
Nghỉ hưu Khác (Vui lòng ghi cụ thể: ……….)
Thu nhập bình quân mỗi tháng của bạn đạt bao nhiêu VNĐ/tháng? Hiểu rõ về mức thu nhập trung bình giúp bạn có cái nhìn tổng quan về đời sống tài chính hiện tại Để nâng cao thu nhập, bạn có thể tìm kiếm các cơ hội việc làm phù hợp hoặc nâng cao kỹ năng chuyên môn của mình Tham khảo các dữ liệu mới nhất về thu nhập trung bình sẽ giúp bạn lên kế hoạch tài chính hiệu quả hơn.
≤ 5.000.000 VNĐ 6.000.000 – 10.000.000 VNĐ 11.000.000 – 15.000.000 VNĐ 16.000.000 – 20.000.000 VNĐ ≥ 20.000.000 VNĐ
1.14 Ngân hàng bạn đang sử dụng dịch vụ (có thể chọn nhiều câu trả lời)
Sacombank Vietcombank ACB Đông Á Techcombank BIDV
Agribank Ngân hàng khác (Vui lòng ghi cụ thể : ……….)
1.15 Dịch vụ bạn đang sử dụng tại ngân hàng (có thể chọn nhiều câu trả lời)
Dịch vụ tiền gửi của chúng tôi bao gồm các loại tài khoản như tài khoản vãng lai, tài khoản tiết kiệm và chứng chỉ tiền gửi, giúp khách hàng quản lý tài chính linh hoạt và an toàn Bên cạnh đó, chúng tôi cung cấp các dịch vụ cho vay đa dạng như cầm cố thế chấp, vay tiêu dùng, vay mua nhà và vay mua xe, đáp ứng mọi nhu cầu tài chính của khách hàng Ngoài ra, dịch vụ chuyển tiền trong nước và ngoài nước nhanh chóng, an toàn giúp khách hàng dễ dàng giao dịch và tiết kiệm thời gian.
Dịch vụ thẻ (ATM, Visa card, Debit card, ) Internet banking (cho phép khách hàng thực hiện giao dịch thông qua internet như: Chuyển khoản, truy vấn tài khoản,…)
Dịch vụ ngân hàng tại nhà (home banking) cho phép khách hàng thực hiện các giao dịch ngân hàng một cách tiện lợi ngay tại nhà qua internet hoặc điện thoại di động Với dịch vụ này, người dùng có thể chuyển khoản, chuyển tiền, thanh toán hóa đơn và thực hiện các giao dịch tài chính khác một cách nhanh chóng và an toàn Home banking giúp tiết kiệm thời gian và công sức, mang lại sự tiện lợi tối đa cho khách hàng trong quá trình quản lý tài chính hàng ngày.