Then, using factor analysis to classify the discovery EFA groups observed variables affect customer experience on the quality of products and services at Agribank – Yen Dung Branch.. The
Motivation of study
The banking industry is undergoing significant transformations, leading to increasingly demanding customers It is essential for businesses to comprehend customer needs and align their future services with customer value While customer experience is a well-established concept in developed countries, it is still relatively new in Vietnam, where businesses are beginning to explore this area, albeit with limited intensive research.
Up to 85% of managers believe that traditional competitive strategies based on price, products, and services are no longer effective; instead, "customer experience" is now the key to success (Shaw and Ivens, 2002) This shift emphasizes the importance of customer satisfaction over mere service Pine and Gilmore (1998) highlighted the value of creating strong, lasting customer experiences, which can lead to increased loyalty and advocacy, ultimately driving annual revenue (Responsetek, 2010) Erna Andajani (2015) noted that customer experience is a natural and multidimensional process, engaging individuals at various levels and encompassing both physical and psychological aspects.
In today's rapidly evolving society, consumer expectations have significantly increased, with individuals demanding not only high-quality products and services but also exceptional, personalized experiences The service industry adheres to the philosophy that "Customer is God," compelling businesses to prioritize delivering outstanding customer experiences A Forrester study from 2015 reveals that over 80% of consumers are willing to pay a premium for enhanced user experiences, highlighting the necessity for banks to focus on providing the best possible service However, recent literature critiques this approach, advocating for research to concentrate on actual usage behavior rather than merely intentions (Wu and Du, 2012; Laukkanne, 2016).
In the banking and finance sector, where products are intangible and differentiation among organizations is challenging, it is essential for banks to enhance service quality to boost product visibility and foster customer trust Given that new banking products can be swiftly replicated by competitors, the unique aspect that remains difficult to imitate is the customer experience.
There have been many studies in the world on this topic, and some famous works have been published in Vietnam
The book "eExperience - Building Experiences in the Age of Demanding Customers" by Brian Solis, published in Vietnam in 2019, focuses on creating exceptional service experiences Brian Solis is recognized as a leading thought leader in business innovation and serves as the principal analyst at Altimeter Group, a firm specializing in predictive analysis.
The book "Customer-Centric: The Key to Sustainable Brand Development" by Kyle MK, published in Vietnam in 2017, emphasizes that human emotions are fundamental to all actions It highlights that businesses can achieve significant success by respecting emotional values in their business goals, product development, and service offerings.
Loyalty expert, Fred Reichheld has shown how to restore and bring goodwill to customers through the book "The Ultimate Question 2.0" (published in Vietnam in
In 2015, a pivotal question emerged for businesses: "Would you recommend us to a friend?" This inquiry enables companies to analyze both positive and negative customer feedback, providing a valuable metric for assessing their performance from the customer's perspective.
Recent studies in Vietnam have seen domestic authors actively researching service quality and customer satisfaction Notable contributions come from Nguyen Hong Quan (2019), Luu Kim Sang (2018), and Tran To Uyen (2017), along with Nguyen Thi Hanh, highlighting a growing interest in this important topic.
In their studies, Phan Thi Phuong Thao (2015) and others (2017) utilized a model to evaluate customer satisfaction regarding service quality Their research primarily concentrated on assessing service quality and customer satisfaction, addressing only a segment of the overall customer experience Notably, the same model can be effectively applied to measure broader aspects of customer satisfaction.
3 experience; however, measuring factors affecting customer experience seems to be universal
The study aimed to evaluate the factors influencing customer experience at Agribank - Yen Dung Branch, with the goal of enhancing overall customer satisfaction It is clear that the banking sector can significantly strengthen its position by conducting thorough research on customer experience and implementing the findings in practice.
Research object
The banking sector is highly competitive, necessitating that banks differentiate themselves through superior products, interest rates, and service quality Customer experience has become a crucial focus for Agribank, particularly at its Yen Dung Branch, which primarily serves agriculture and rural areas—challenging sectors due to their inherent risks Despite facing numerous obstacles, Agribank has established itself as a key partner in agricultural and rural development, contributing to hunger eradication and poverty alleviation, and earning recognition from local government committees.
The study employs objective-based questionnaires and research questions to gather essential data The questionnaire is structured with an overview that introduces the purpose and significance of the investigation, followed by an introduction that provides general information about the respondents The main section features questions arranged in a logical sequence For data analysis, SPSS 20.0 software is utilized, with reliability measured using Cronbach’s Alpha for each observed variable Factor analysis is then conducted to identify EFA groups that influence customer experience regarding product and service quality at Agribank – Yen Dung Branch Finally, regression analysis is performed to assess the statistical relationships and the impact of each factor on customer experience.
In regression analysis, it is essential to implement an appropriate model This study utilizes 23 observed variables to assess and confirm the level of significance, allowing for the acceptance of a variable's value when multiplied by 5 (Hoang Trong and Chu Nguyen Mong Ngoc).
In a study conducted in 2005, a sample size of 120 was utilized, focusing on 115 elements related to decision-making The research employed a 5-level Likert scale, ranging from 1 (strongly disagree) to 5 (strongly agree), to assess the impact of various factors on customer experience The findings highlight the significance of these factors in enhancing customer satisfaction The thesis is structured to provide a comprehensive understanding of the value of improving customer satisfaction.
1 𝑠𝑡 chapter introduces about Research background
2 𝑛𝑑 chapter introduces about Empirical analysis
3 𝑟𝑑 chapter introduces about Research design
4 𝑡ℎ chapter introduces about Conlusions and Recommendations
RESEARCH BACKGROUND
Customer experience at commercial banks
Customer experience (CX) refers to the impressions that customers form when interacting with products, services, and businesses, as defined by Carbone (1998) Meyer and Schwager (2007) further elaborate that CX encompasses the internal subjective responses of customers during both direct and indirect interactions with a business.
In their 1998 Harvard Review article, Pine and Gilmore emphasized that customer experience encompasses all the values a customer encounters with a supplier during their interactions This personal experience is shaped by the context of each transaction Additionally, Paul Greenberg, in his book "CRM at the Speed of Light," defines customer experience as the evolving perception customers have of a company, highlighting that it is rooted in emotions and the anticipation of growth and change over time.
Customer experience (CX) is a comprehensive emotional and cognitive process shaped by both individual and cumulative interactions with a business's employees, systems, channels, or products It encompasses the customer journey, the various touchpoints where customers engage with the brand, and the overall experience environment A successful interaction occurs when the customer’s experience at all touchpoints meets or exceeds their expectations, resulting in a positive overall experience.
Numerous financial industry researchers, including Walls (2013), have identified key elements of customer experience, highlighting both the physical environment and interpersonal interactions involving people, services, and financial products This study focuses on the services offered by commercial banks to illustrate customer satisfaction levels derived from these experiences.
Customer experience (CX) is a crucial strategy for commercial banks in today's competitive landscape, as it significantly influences customer loyalty and future behavior Understanding how customers evaluate their experiences and the impact of these evaluations on their post-use behavior presents a challenge for banks.
1.1.2 The role of customer experience in commercial bank activities
Customer experience in banking plays a crucial role in enhancing satisfaction, boosting engagement, and building loyalty This focus on customer experience is vital for the growth and sustainability of banks A successful bank prioritizes customer needs, demonstrating care and attention while placing customers at the center of its development strategy.
Customer experience plays a crucial role in establishing a competitive advantage, especially for commercial banks A bank's ability to effectively operate and maintain its services is essential for attracting and retaining customers Ultimately, customers serve as the most valuable asset for commercial banks in the competitive landscape.
A positive customer experience offers significant benefits to commercial banks, leading to increased usage of their products and services, which boosts net revenue and establishes a competitive edge Given the similarities in banking products, exceptional customer experience becomes the key differentiator for banks in a crowded market Additionally, sustaining this competitive advantage motivates banks to pursue continuous growth and improvement.
• Developing a variety of new customers
In the 4.0 technology era, enhancing customer experience is crucial for banks to attract new clients To effectively promote their brand nationwide, many commercial banks leverage social media platforms like Facebook, Google, and Zalo, alongside traditional advertising methods.
"word of mouth" is the most effective and best cost-effective
A successful bank delivers an exceptional customer experience that resonates deeply with clients When customers are satisfied with the quality of service, they are more likely to recommend the bank to friends and family This word-of-mouth promotion not only helps the bank rapidly expand its customer base but also fosters the development of loyal clients.
Customers feel more confident in products and services when recommended by friends, making this form of endorsement more trustworthy than traditional advertising As a result, enhancing customer experience is crucial for attracting new clients and boosting revenue for banks.
Customer satisfaction and positive experiences are crucial for commercial banks to achieve success When customers are pleased with their banking services, they are more likely to explore additional products, which in turn enhances their loyalty to the bank.
The commercial banking system frequently provides points and various preferential policies to reward loyal customers who utilize multiple products and services While the value of these rewards may not be substantial, they enhance customer satisfaction and create a sense of exclusivity.
• Increasing profits of commercial banks
Commercial banks that prioritize a positive customer experience tend to retain a larger customer base Customers who utilize multiple services contribute more significantly to the bank's revenue Additionally, loyal customers tend to engage more frequently with the bank's products and services, leading to a substantial increase in profits.
Customer experience plays a crucial role in the success of commercial banks This aspect presents a double-edged sword, necessitating that banks skillfully enhance and leverage customer experience to achieve optimal results.
1.1.3 Methods evaluating customer experience at commercial banks a The perfection of products and services provided by commercial banks
Factors affecting customer experience at commercial bank
1.2.1 Subjective factors a Financial capacity and management of commercial banks
Ha Thi Tra My (2020) emphasized that banks require substantial investment capital to invest in technology, train staff, and develop service networks This capital is essential as it serves as the primary condition for initiating significant changes within the entire system.
Insufficient capital hinders the ability to diversify products and services and enhance operational efficiency Consequently, banks must establish a long-term capital increase strategy that aligns with a well-defined roadmap tailored to their specific development needs.
To enhance service competitiveness, executives must adhere to legal requirements while possessing professional banking knowledge to analyze and assess risks associated with each service type Understanding the development trends of these services is crucial for implementing preventive measures and making informed decisions Additionally, effective banking operations require that product and service development align with the bank's operational capacity, as well as its position and reputation in the market.
Banking services are intangible, customers cannot evaluate the service if they have not used it Therefore, customers tend to choose banks with prestige and position in
16 the market Building a bank's position and reputation plays an important role in attracting customers and developing banking services c Banking facilities and technology
The advancement of technology is a crucial factor in enhancing the quality and expansion of banking services It enables banks to efficiently manage operations and staff, but reliance on outdated technology can hinder the ability to offer diverse services that meet customer demands By embracing modern technology, banks can develop innovative services such as Phone Banking, Internet Banking, and online services, which surpass traditional offerings Additionally, having a well-established network of spacious, conveniently located transaction offices equipped with comfortable facilities is essential for creating a positive customer experience This combination of modern technology and quality infrastructure not only attracts customers but also promotes the bank's growth and service improvement to better satisfy customer needs.
Banking marketing involves researching the market and managing banking services, including analyzing service prices and organizing promotional and distribution activities These interconnected factors are essential for successfully developing and offering high-quality services that meet customer needs Effective marketing activities are crucial for attracting customers and enhancing the bank's business efficiency, highlighting the importance of the bank staff's qualities and competencies.
In all socio-economic activities, especially in services industries such as banking, people always play an important role and determine success
The qualities and competencies of teller staff are crucial in delivering high-quality banking services Their professional knowledge, experience, job handling skills, transaction style, and service attitude significantly enhance the bank's image and elevate the overall value and quality of the services provided.
The quality of service created by different employees will be of different quality even though the same facility conditions lead to different levels of customer satisfaction with the service
Therefore, to develop services for improving business efficiency, banks need to focus on developing staff, training human resources, cultivating ethics and qualities of employees, which are very important
Organizations must adhere to the legal environment in which they operate, particularly in the banking sector, where activities are influenced by regulatory frameworks such as monetary policy, exchange rate policy, and pricing policy Clear and synchronized legal documents enhance operational efficiency by establishing specific regulations that protect organizational interests and foster trust among individuals This trust encourages individuals to engage in transactions with banks, ultimately facilitating the development of banking services.
The overlapping legal system creates challenges for organizations and individuals in their business operations, particularly within the banking sector The complexity of the current legal framework, characterized by numerous guiding documents that amend single provisions, leads to confusion and redundancy Furthermore, the involvement of various regulatory agencies in legal documentation can impede the growth of the banking industry.
A developed economy creates development opportunities for business activities in general and the banking industry in particular The developed economy creates
Favorable conditions for organizations and individuals to invest and expand production can significantly enhance efficiency and income, thereby boosting market transactions This increase in economic activity drives demand for banking services, including payment, guarantee, and foreign currency trading services Conversely, during economic crises, fear of risks leads to reduced production and business expansion, resulting in decreased income and spending This decline ultimately reduces the demand for banking services, hindering banks' ability to develop and offer new services.
In a challenging economic environment, rising inflation can erode trust in currency, prompting individuals to withdraw cash and reduce their reliance on bank accounts This lack of confidence discourages the use of cashless payment methods and banking services, ultimately hindering the development of banking services.
The socio-political environment encompasses various factors, including politics, the intellectual level of the population, cultural habits, and income levels A stable political climate fosters investment and production growth, leading to the development of new banking services The intellectual capacity of individuals plays a crucial role in their ability to access and utilize these services; a lack of understanding regarding the benefits of banking can hinder the growth of financial services.
Vietnamese people have a habit of using cash in buying and selling transactions, most people are not used to non-cash payment even for urban people
Income levels significantly influence the growth of banking services, as banks struggle to expand in environments where individuals face financial hardships This relationship underscores the importance of a competitive environment in fostering the development of banking services.
In the trend of world economic integration, any business activity has competition Especially the banking industry is facing fierce competition Customers actively choose banks for transaction relations
Customers can establish relationships with multiple banks, as financial institutions increasingly reach out to offer various options High-quality service and competitive pricing are key factors that attract and satisfy customers.
In today's globalized economy, domestic banks are under intense competitive pressure from foreign banks that possess advanced technology and extensive management experience To enhance their competitiveness, domestic commercial banks must accelerate their plans to innovate, invest in technology, diversify their service offerings, modernize transaction methods, and provide attractive deals with reasonable fees This competition ultimately drives the development of banking services.
Customer experience is crucial for achieving sustainable success in businesses, particularly in the service sector like finance and banking The first chapter of the thesis establishes the theoretical foundations regarding the factors influencing customer experience in commercial banks, which will serve as a basis for the subsequent chapters.
ANALYSIS
Introduction about Agribank – Yen Dung Branch
2.1.1 General introduction about Agribank – Yen Dung Branch a General introduction
Founded in 1988, Agribank has over 30 years of experience in the banking sector, establishing itself as a leading provider of comprehensive and modern banking products and services With a vast network of nearly 2,300 branches and transaction points across Vietnam, Agribank is recognized both domestically and internationally, solidifying its status as one of the top commercial banks in the country.
Agribank Yen Dung branch offers a comprehensive range of banking services, including credit activities, capital mobilization, domestic account management, payment services, and foreign currency trading, all in compliance with legal regulations and Agribank's policies Situated in an agriculture-focused area, the branch is dedicated to delivering convenient banking products that empower local farmers to leverage 4.0 technology in their production and business endeavors Committed to supporting agricultural and rural development, the branch plays a significant role in economic restructuring, rural development, and social security initiatives Guided by the overarching vision, mission, and values of the Agribank system, the branch prioritizes customer-centric product and service development, aiming to expand its customer base and enhance the overall service experience for its clients.
Agribank, including the Yen Dung branch, is committed to evolving into a modern banking system focused on "growth, safety, efficiency, and sustainability," while enhancing its competitiveness and facilitating international economic integration.
The leading State-owned commercial bank in Vietnam is pivotal in driving investment and development in agriculture, supporting farmers, and enhancing rural areas, thereby significantly contributing to the socio-economic growth of the country.
The Directorate, comprising the Director and two Deputy Directors, oversees and manages all branch activities and associated transaction offices They are responsible for making decisions, granting approvals within their authority, and ensuring compliance with State Bank regulations.
The accounting department plays a crucial role in managing capital mobilization and lending activities It oversees payment transfers, cash deposits, and withdrawals from accounts, ensuring efficient transactions for current customers Additionally, the department handles overseas payment exchanges, foreign currency trading, and provides necessary documentation for international money transfers.
The Credit Department plays a crucial role in identifying customers in need of capital within its operational area, ensuring the prompt and accurate completion of loan documentation Additionally, it is responsible for managing both outstanding and non-performing loans across the entire region.
The Service and Marketing Department is dedicated to customer care and identifying potential clients for Agribank's card accounts, products, and services Additionally, it plays a crucial role in promoting and advertising new offerings to ensure widespread awareness of the bank's products within the community.
2.1.2 Agribank Yen Dung’s business results in the period of 2019-2021
As a trusted bank in an agricultural-focused region, the branch has built a strong reputation among local citizens over the years However, the competitive landscape of the banking sector presents significant challenges To navigate this environment, it is crucial to identify competitors and classify target customers effectively The branch offers a variety of loan products, including inter-season loans, agricultural loss support loans, small-scale loans, and loans for agricultural policy development, among others These loans are managed rigorously, adhering to professional processes for debt collection and interest recovery, resulting in high performance.
Figure 2.1 Operating activities of Agribank – Yen Dung Branch
Note: Figure 2.1 shows business performance at Agribank – Yen Dung branch between 2019 and 2021 The data collected through internal reports of the bank
The evaluation of the branch's business performance from 2019 to 2021 reveals three key criteria: Profit, Credit balance, and Deposit mobilization, all of which show an upward trend Although profit experienced a slight decline of 3.6%, from VND 74.2 billion in 2019 to VND 71.5 billion in 2020, it rebounded significantly by 25.7% (VND 18.4 billion) by the end of 2021 These results indicate that the bank has effectively excelled in its credit, lending, and service activities.
Agribank Yen Dung prioritizes sustainable development by expanding its outstanding loans, recognizing credit growth as a key income source In 2019, the branch's credit balance reached VND 1,278 billion, and by 2020, it increased to VND 1,427.4 billion, reflecting a growth of VND 149.4 billion.
In 2021, Agribank Yen Dung's credit balance rose to VND 1584 billion, reflecting steady growth The bank offers a diverse range of loan products, including short-term, medium-term, and long-term mortgage loans tailored for individual consumption, livestock, and business needs Additionally, Agribank Yen Dung provides mortgage loans secured by valuable papers and unsecured loans to accommodate various customer requirements, serving both individual and corporate clients The loan structure for individuals and organizations is detailed in the accompanying table.
Note: Figure 2.2 shows credit performance results at Agribank – Yen Dung branch between
2019 and 2021 The data collected through internal reports of the bank
It can be seen that the total outstanding balance of the bank in 3 years has always increased at a high level, from VND 1278 billion in 2019 to VND 1584 billion in
In 2021, Agribank, recognized as a leading agricultural bank, operates its Yen Dung branch in the heart of the district, primarily serving customers engaged in seasonal activities such as planting, breeding, and business ventures Consequently, most loans offered are short-term, typically lasting less than one year The branch's short-term loan portfolio grew from VND 894.6 billion in 2019 to VND 1,027.7 billion, representing 72% of the total outstanding loans.
2020, and rose continuously to VND 1188 billion (accounting for 75% of total outstanding loans), playing a key role in credit activities of Agribank Yen Dung in
In 2021, during the Covid-19 pandemic, the bank implemented supportive policies for customers regarding interest rates and debt structure, which contributed to an increase in total outstanding loans Post-Covid-19, businesses in Northern Vietnam faced significant capital challenges, leading to a surge in borrowing for production and business activities Individual customers also increased spending for daily needs, such as home construction and shopping, resulting in a higher total outstanding balance at Agribank Yen Dung Medium and long-term loans fluctuated slightly over three years, representing 25% to 30% of the branch's total outstanding loans Despite a 2% decrease in proportion from 2019 to 2020, these loans rose from VND 383.4 billion to VND 399.7 billion However, by 2021, the balance of medium and long-term loans fell to VND 396 billion, with a 3% decrease in proportion, indicating potential concerns for the branch as these loans exhibited higher interest rates.
Note: Figure 2.3 shows deposit performance results at Agribank – Yen Dung branch between
2019 and 2021 The data collected through internal reports of the bank
Agribank Yen Dung has demonstrated a stable growth rate in deposit mobilization, achieving a significant increase of 20.4% in total deposits from 2019 to 2020, followed by a 7.5% rise over the next two years Notably, demand deposits surged by approximately 40%, growing from VND 122.2 billion in 2019 to VND 170.4 billion in 2020, and further to VND 233.9 billion in 2021 This upward trend indicates the branch's success in attracting demand deposits through enhanced card services and bank accounts Additionally, deposits with terms exceeding 12 months experienced steady growth, with a 16.7% increase from 2019 to 2020 and a further rise of 25.3% by 2021 Conversely, deposits with terms of less than one year peaked in 2020, showing a 21.2% increase to VND 283 billion before a slight decline of 7.4% to VND 119.1 billion in 2021.
Customer experience at Agribank – Yen Dung branch
2.2.1 List of products and services
About Agribank- Yen Dung Branch, the bank provides a full range of products and services under Agribank’s system Including:
The business capital of commercial banks primarily derives from two key sources: owner's equity and mobilized capital, with the latter representing a significant portion of the total capital Mobilized capital encompasses deposit receipt services and capital mobilization through the issuance of valuable papers.
Lending is a crucial business operation that generates significant income for banks, primarily through various forms of credit, including short-term and long-term loans.
Payment services contribute to the development of non-cash payment systems in the economy This service includes: domestic payment service, international payment service
Currently, on the foreign exchange market, there are many methods of foreign currency trading, including: Spot Operations, Forward Operations, Swap Operations, Future Operations, and Option Operations
Commercial banks have leveraged the opportunity to offer E-Banking services to customers through various channels, including Phone Banking, Mobile Banking, and SMS Banking, as well as Internet Banking and support via call centers and contact centers.
2.2.2 Customers at Agribank – Yen Dung branch
The banking and finance sector faces significant challenges in customer research due to its large customer base To effectively identify and verify the target customer profiles, it is crucial to segment the market by product type.
Although the Yen Dung branch is small-scale, the branch has received the trust of more than 9,000 individual and corporate customers
Regarding individual customers at Agribank, customers are mainly middle-aged people These are people with financial needs
Customers can be divided into the following groups:
• People who have a need to save and accumulate for great financial purposes in the future They often have a need to use economical products
• People who have a modern lifestyle, don't have much time, care about things that are convenient and fast usually prefer e-banking, account packages
Individuals who are inclined to spend may not have substantial immediate funds, yet they effectively leverage banking resources for intelligent consumption, often utilizing credit products or consumer loans.
Wealthy and experienced individuals often favor high-value business loans and investment products, leveraging bank capital to maximize their investment returns.
Agribank Yen Dung Branch categorizes its business customers into small and medium enterprises and large corporations, primarily serving those seeking loans and deposits for future development However, these business clients represent a small fraction of the bank's overall customer base, as the region's agricultural focus leads to a predominance of individual customers While Agribank and the broader banking system have made some strides in service quality, there remains a significant need for improvement in customer experience For the bank to thrive, management must establish a clear strategy and commit to substantial investments in enhancing customer satisfaction.
Customer experience review channels are currently limited, with joint stock commercial banks utilizing methods like 5S4C, secret customers, and CCTV to enhance service quality In contrast, Agribank has only recently begun implementing these strategies on a smaller scale Consequently, there is a pressing need for innovative approaches to effectively enhance customer experience.
Insights into Customer experience at Agribank - Yen Dung branch
2.3.1 Customer experience’s overview at Agribank Yen Dung
In recent years, Vietnamese commercial banks have prioritized customer experience, yet they lack extensive research for large-scale implementation, focusing mainly on improving service quality A common practice is the adoption of an ISO-compliant quality management system, progressing from basic to complex levels Additionally, several joint stock commercial banks, such as TCB, have integrated tools like 5S and Lean 6 Sigma into their quality management systems However, these methodologies have not been broadly implemented within the Agribank system.
Effective quality management systems in banking firms involve establishing a dedicated quality management department at headquarters and appointing representatives at various management levels This structure ensures that the organization's objectives, vision, and mission are communicated to all employees Regular inspections and assessments are conducted across all departments and branches to maintain quality standards Additionally, executives and staff receive training to enhance their understanding and implementation of the quality management system An external assessment mechanism is also in place annually to evaluate performance and award certifications.
Agribank Yen Dung Branch's management is aware of the benefits of a quality management system to varying degrees However, staff did not have the opportunity
29 to have in-depth access, and the implementation was only a formality, not in a functional approach
Many individuals focus solely on completing the necessary documentation for the assessment team, viewing the ISO system primarily as a means to keep documents organized Consequently, the effectiveness of a quality management system remains unclear, particularly when considering the substantial resources allocated for its maintenance, operation, and implementation.
Agribank Yen Dung faces challenges in ensuring effective internal service quality control due to vague standards, leading to inconsistencies and delays This lack of synchronization, coupled with insufficient accountability and internal commitments, creates opportunities for ethical violations and legal infractions, potentially resulting in serious repercussions for both the organization and its employees.
In summary, the Agribank Yen Dung branch has yet to effectively implement a comprehensive customer experience strategy, primarily focusing on enhancing service quality at select levels For success, bank management must establish a clear roadmap and commit to significant investments in customer experience improvements Additionally, the current channels for reviewing customer experiences are limited While joint stock commercial banks utilize methods like 5S4C, secret shoppers, and CCTV for service quality assessment, Agribank has only recently begun to adopt these practices on a smaller scale Consequently, innovative breakthroughs are necessary to optimize customer experience.
2.3.2 Current status of customer experience at Agribank – Yen Dung
Branch a The perfection of products provided by Agribank – Yen Dung branch
Agribank Yen Dung stands out among Bac Giang branches for its exceptional range of products and services tailored for individual customers, particularly in capital mobilization The bank offers a diverse selection of deposit products designed to cater to the varying needs of its clientele.
Agribank - Yen Dung Branch offers a variety of savings options, including term savings with diverse terms and interest receipt methods, security savings designed for individuals looking to accumulate funds for future plans, and online deposits, which are increasingly popular among customers.
In a highly competitive banking environment, Agribank is committed to enhancing infrastructure to improve customer experience and advance digital banking and payment systems through various initiatives Located centrally, Agribank efficiently manages a high volume of transactions during office hours, maintaining quick processing times and a minimal error rate in deposit services over the past three years This success is largely attributed to the effective leadership of Agribank Yen Dung's board, which has prioritized the implementation of online, smart, and secure deposit solutions.
The front office is crucial in upholding the bank's image by continuously innovating transaction methods to streamline procedures while ensuring high accuracy This approach effectively attracts a significant number of customers to deposit their money at the branch Additionally, the bank offers a diverse range of deposit products and competitive interest rates, providing customers with various choices and enhancing their overall experience with the bank's services.
From 2019 to 2021, Agribank - Yen Dung Branch experienced steady growth in total outstanding loans, primarily serving individual customers seeking financing for livestock, production, and business purposes The bank is committed to expanding its credit activities to promote sustainable development, achieving a non-performing loan ratio of less than 1% Additionally, the overdue debt rate has decreased, aided by debt extension policies implemented during the Covid-19 pandemic.
Agribank has enhanced its service quality for individual customers by offering a diverse range of loan products tailored to support agricultural businesses, including loans for agricultural losses, inter-season financing, and agricultural development policies The entire process, from customer engagement to loan appraisal and disbursement, is streamlined for efficiency, with bankers providing dedicated support throughout.
We prioritize the care of our 31 customers from the initial stage, maintaining support even after the sale This traditional, direct approach, free from intermediaries, guarantees exceptional accuracy and consistently receives positive feedback from our clients.
In recent years, Agribank has proudly contributed to the promotion of non-cash payment policies in Vietnam, particularly in the agricultural sector, aligning with initiatives from the Prime Minister and the State Bank Governor Agribank Yen Dung has successfully implemented various programs aimed at enhancing card product issuance in rural markets, including offering overdraft limits through unsecured cards Furthermore, Agribank is committed to fostering the growth of card-accepting units in agricultural areas by investing in and providing free equipment.
To enhance digital banking accessibility in rural areas, Agribank Yen Dung has introduced Mobile and Internet banking services, allowing customers to easily access card information and transfer funds at no cost These e-mobile banking services offer numerous benefits, including the ability to check foreign currency exchange rates, loan account balances, savings deposit interest rates, and pay utility bills, with an overdraft limit of up to VND 30 million over 12 months This innovation enables customers to save time while conducting transactions and inquiries remotely via Internet-enabled devices.
Agribank – Yen Dung Branch prioritizes service quality by conducting surveys across all branches and affiliated offices The branch emphasizes capital mobilization services while also ensuring customer satisfaction remains a key focus.
32 product quality, professional attitude of staff as well as efforts, address existing problems
Over the years, Agribank - Yen Dung Branch has always targeted individual customers because they are the main source of revenue for the bank
Therefore, even though Yen Dung Branch did not sign loans with many large enterprises, it still showed the top business results in the province
The current situation of factors affecting customer experience
2.4.1 Financial capacity and executive management
Agribank is dedicated to its mission of "Bringing prosperity to customers," striving to provide optimal benefits to individuals and foster economic growth in rural areas To achieve this, Agribank has streamlined its product offerings and concentrated on developing solutions that support agricultural production The bank's products are tailored to meet the specific needs of customers in these regions.
As a leader in the Big4 system, Agribank has consistently focused on enhancing customer experience, particularly for those in the agricultural sector The bank offers tailored loan support products and services to meet the unique needs of agricultural producers In response to the challenges posed by the Covid-19 pandemic, Agribank implemented interest rate support policies to assist its customers, highlighting the importance of strong financial autonomy for the bank.
2.4.2 Position and prestige of customers
As a key player in the Big4 banking system, Agribank is recognized for its prestige and strong position within the financial sector In a competitive market, Agribank is committed to delivering exceptional financial services that maximize customer benefits and foster growth This dedication is exemplified by the Yen Dung Branch and its staff, who strive daily to enhance customer experiences and ensure satisfaction.
Agribank - Yen Dung Branch holds a prominent position in the region, consistently attracting a loyal customer base Clients appreciate the attentive and friendly service provided by the staff, who make an effort to remember names and offer thoughtful gifts on special occasions.
Agribank's success is attributed to its strategy of developing exceptional personnel, focusing on training staff according to their customer segments to enhance understanding and commitment The Yen Dung Branch has optimized its internal structure to boost productivity and eliminate unnecessary roles, addressing past issues of employee disunity Agribank boasts the highest number of A1-ranked human resources in the industry, reflecting a professional environment and deep knowledge of products and services, which enables thoughtful customer advice Employees thrive in a supportive atmosphere that fosters career development and pride in their work The transition from a product-focused to a customer-centric approach at Agribank relies on collaboration between customers and the entire staff.
Chapter II shows the whole picture of the current state of customer experience at Agribank – Yen Dung branch through analyzing the current situation of customer experience Agribank – Yen Dung Branch also has a positive move on the journey of building customer experience, but has not yet formed a clear customer experience They only focus on some stages of service quality Since then, this chapter also outlines the limitations that need to overcome in the future These limitations form the basis for specific directions, strategies, and solutions for the next chapters
RESEARCH DESIGN
Research model
Measuring services is challenging due to their intangible, heterogeneous, inseparable, and non-storable characteristics, with service quality being perceived individually rather than quantifiable through data While the SERVQUAL scale has been validated through numerous studies, it faces criticism regarding its reliability across various sectors, including banking and food and beverage In response, Cronin & Taylor (1992) developed the SERVPERF model, which focuses on assessing customer perceptions of service performance while excluding the expected value present in SERVQUAL.
During the internship at Agribank - Yen Dung branch, it became evident that the SERVPERF model significantly impacts customer satisfaction The central bank serves a densely populated district, leading to customer overload, particularly on the first trading days of the week, resulting in long wait times for simple transactions like deposits and withdrawals Despite the availability of the Agribank E-mobile banking app, which offers comprehensive features for online transactions, users still face risks such as software errors Consequently, the responsiveness and accuracy of support staff in addressing customer inquiries play a crucial role in shaping the bank's image among its clientele.
The writer has chosen the SERVPERF model of Cronin & Taylor (1992) as an optimal tool to measure customer satisfaction when experiencing services at Agribank - Yen Dung branch
1 “Reliability”: demonstrated through the ability to provide suitable services to customers, be on time as committed and effectively from the first time, then build trust for customers
2 “Responsiveness”: demonstrated from the bank’s willingness to provide services quickly and meet customer’s demands
3 “Tangibility”: demonstrated through modern equipment that the bank has invested in products, especially the App product
4 “Assurance”: demonstrated through the professional capacity, ability to create trust with customers, enthusiastic service style, polite to customers of the bank staff
5 “Empathy”: demonstrated through the care and concern of the staff to each customer
Dependent variable: demonstrated through the satisfaction of customers with the service quality of Agribank – Yen Dung Branch
Figure 3.1 Model on customer satisfaction at Agribank - Yen Dung Branch
Note: Figure 3.1 describes the model SERVPERF on customer satisfaction at Agribank – Yen Dung branch In particular, there are five independent variables and one dependent variable
Hypothesis H1: “Reliability” has a positive impact on the satisfaction of customers
Hypothesis H2: “Responsiveness” has a positive impact on the satisfaction of customers
Hypothesis H3: “Assurance” has a positive impact on the satisfaction of customers Hypothesis H4: “Empathy” has a positive impact on the satisfaction of customers
Hypothesis H5: “Tangibility” has a positive impact on the satisfaction of customers
To apply SERVPERF model to survey customer’s experience at Agribank – Yen Dung Branch, the writer used Excel 2013 and SPSS 22 software
The questionnaire will be built based on the relevant research overview theories of satisfaction measurement and other necessary information needed in the model
Step 2: Determining the sample size and scale for the survey
Step 3: Sending questionnaire for customers who have used services at Agribank
The writer conducted a small survey by sending google form to 10 customers to evaluate the feasibility of the questionnaire
The writer sent 120 survey questionnaires through Google Form for customers using products and services at Agribank – Yen Dung Branch
Step 4: Collecting data from Google Form
Step 5: Data processing using SPSS 22 software and analyzing
The questionnaire comprised 23 statements, with 19 focused on the service quality of Agribank’s products at the Yen Dung Branch and 4 addressing customer satisfaction levels The survey utilized a Likert scale to gauge responses.
The scale includes components and observed variables as the table below:
1 The bank promptly provides services that meet customers' demands
2 All customer information is committed to secrecy REL2
3 Transactions through the App are secured by SmartOTP REL3
4 The employees keep their records accurately REL4
5 The employees are sympathetic and reassuring when customers have problems
1 The employees are expected to always help the customers RES1
2 The employees are expected to tell customers exactly when services will be performed
3 Problems are handled quickly RES3
4 It is a realistic for customes to easily contact with telephone exchange if having any problems
1 Service firm has up-to-date equipment TAN1
2 The physical facilities are visually appealing TAN2
3 The employees are well dressed and appear neat TAN3
4 ATM system is clean, safety TAN4
1 The employees are polite and enthusiastic ASS1
2 The customers are able to feel safe in their transactions with the employees
3 The employees take good care of their customers ASS3
1 The employees know what the needs of their customers are EMP1
2 Agribank always takes the interests of customers as its development goal
3 The employees are expected to give customers personal attention EMP3
1 Customers rate the service quality as very good SAS1
2 Customers will continue to use products in the future SAS2
3 Customers will recommend the bank’s services to friends and relatives
4 Customers totally agree with banking services SAS4
Note: Table 3.1 shows scale encoding method with a total of 23 observed variables The data collected by SPSS 20
Data
A total of 120 survey questionnaires were distributed to customers of Agribank – Yen Dung Branch, resulting in 115 valid responses after data screening, achieving a response rate of 87.5% The remaining 5 responses were deemed unsatisfactory and excluded from model testing.
Table 3.2 Demographic profile of the respondents
Age Less than 22 years old 18 17,1
Time using products Below 6 months 28 26,7
Note: Table 3.2 shows the characteristics of customers.The data collected by SPSS 20
The survey results indicate that 41.9% of respondents were male and 58.1% were female, suggesting a relatively balanced interest in Agribank – Yen Dung Branch's products and services across genders The age group with the highest customer satisfaction for banking services was individuals aged 23 to 30, comprising 37.1% of respondents (39 individuals) This demographic, being tech-savvy, is more likely to utilize E-banking services and various card products Following this group, those aged 31 to 45 represented approximately 30% of satisfied customers.
A significant portion, 41%, of the total demographic demonstrated stable income and showed interest in various banking products Conversely, only a small minority of older individuals, less than 5%, engaged with and assessed their satisfaction regarding banking products and services.
The customer base of Agribank - Yen Dung Branch is diverse, with undergraduates representing the largest group at 27.6%, totaling 29 individuals This demographic is notably quick to adopt "digital banking" services, leveraging Mobile Banking and card functionalities for educational and personal expenses Following them are businessmen, employees, and farmers, comprising 21%, 22.9%, and 19% of the customer base, respectively.
Farmers and business people, who primarily engage in agriculture, show a strong interest in bank loan products to support their operations This customer segment typically has sound financial standing and frequently handles large transactions, making Mobile Banking services essential for quick and secure transactions Additionally, farmers often prioritize long-term savings, utilizing deposit products to accumulate interest and secure their financial future.
In Yen Dung districts, the rural setting contributes to lower income levels, with the majority of customers earning between 5 million and 15 million VND per month, accounting for 32.4% of the population This situation highlights a significant disparity between low- and high-income groups, as less than 10% of customers earn more than this range.
25 million VND per month This shows that the income factor has not helped the research to have a general and objective view of the customer's evaluation
In terms of product usage time, the time customers used the bank's products from
The majority of customers, accounting for 31.4%, have used the product for 6 to 12 months, while those using it for less than six months and more than one year represent 28.6% and 26.7%, respectively A smaller segment, 13.3%, has utilized the products for over three years This distribution indicates a favorable scenario for research, as most customers maintain long-term relationships with Agribank - Yen Dung Branch, providing them with ample experience to assess the service quality effectively.
At Agribank, card and E-banking products are the most favored among customers, with usage rates of 70.5% and 64.8%, respectively Additionally, the adoption of mobilized capital products stands at 44.8%, which is 16.2% higher than the usage of loan products.
In today's digital age, online banking has become increasingly prevalent, with 77.1% of users opting for online services compared to only 66.7% using traditional offline methods.
3.2.2 Descriptive statistics a Factors evaluating customers’ satisfaction levels when using services at Agribank – Yen Dung Branch
Likert scale is used in the survey to measure the customer's level of agreement or disagreement with each question
5 = 0,8 Therefore, the scale measuring customer satisfaction when using the services of Agribank - Yen Dung Branch is estimated into 5 levels as follows:
1 – 1,8: Very low 1,8 – 2,6: Low 2,6 – 3,4: Medium 3,4 – 4,2: High 4,2 – 5: Very high
Figure 3.2 Average evaluating of customers about Reliability factor
Note: Figure 3.2 shows the average result of measuring Reliability factor The data collected by SPSS 20
The analysis of the "reliability" factor reveals that customer opinions range from high to very high, with scores between 3.81 and 4.32 The most highly rated aspect is the sympathy and reassurance provided by employees when customers face issues, while the lowest rating pertains to the bank's promptness in meeting customer demands Despite this, the difference in ratings is minimal, indicating that customers generally perceive Agribank's services as reliable, with a strong commitment to service quality and confidentiality of customer information.
Figure 3.3: Average evaluating of customers about Responsiveness factor
Note: Figure 3.3 shows the average result of measuring Responsiveness factor The data collected by SPSS 20
Statistical results show that all four observed variables belonging to the
The "Responsiveness" factor is rated highly, while the expectation for employees to assist customers is lower due to Agribank's focus on promoting "digital banking," which encourages online transactions and reduces the need for direct staff assistance Nevertheless, other factors demonstrate that the bank provides timely support to address customer issues.
Figure 3.4: Average evaluating of customers about Tangibility factor
Note: Figure 3.4 shows the average result of measuring Tangibility factor The data collected by SPSS 20
The "Tangibility" factor is characterized by high ratings for observed variables, with the top-rated observation being the cleanliness and safety of the ATM system, scoring 4.17 Banks prioritize maintaining clean ATMs and have installed camera systems to safeguard customer interests, especially given the high volume of cash withdrawals However, banks in rural areas tend to have simpler equipment compared to their urban counterparts Overall, customers express satisfaction with the facilities and services provided.
Figure 3.5: Average evaluating of customers about Assurance factor
Note: Figure 3.5 shows the average result of measuring Assurance factor The data collected by SPSS 20
For the observed variables of the Assurance factor, "The employees take good care of customers" is rated the highest with 4.24 points it is followed by the variable
Customers report feeling secure in their transactions with Agribank, rating this aspect at 4.15 points Although the politeness and enthusiasm of employees received the lowest rating, it remains high on the scale, indicating that bank staff contribute positively to customer experiences Overall, clients feel entirely safe when conducting transactions within Agribank's system.
Figure 3.6: Average evaluating of customers about Empathy factor
Note: Figure 3.6 shows the average result of measuring Empathy factor The data collected by SPSS 20
The Empathy factor reveals a significant disparity between the highest-rated variable, "The employees are expected to give customers personal attention" at 4.05 points, and the lowest-rated variable, "The employees know what the needs of their customers are," which scored 3.7 points This indicates a need for the bank to enhance service quality, better understand the diverse needs of its customers, and prioritize customer focus for long-term development Consequently, Agribank – Yen Dung Branch will implement policies aimed at improving the customer experience.
Figure 3.7: Average evaluating of customer's satisfaction
Note: Figure 3.7 shows the average result of measuring Satisfaction factor of Dependent variable The data collected by SPSS 20
Customer satisfaction at Agribank is rated highly, with the variable "Customers totally agree with banking services" achieving an impressive score of 4.52 Although other variables received slightly lower ratings, they still reflect a strong overall performance This indicates that Agribank has successfully provided a positive customer experience, leading most clients to continue using their services and recommending them to others While this is a promising outcome for the bank, it emphasizes the need for Agribank - Yen Dung Branch to further enhance customer experience moving forward.
Research results
Cronbach’s Alpha is a key metric for assessing the reliability and value of scales in questionnaires Generally, a higher Cronbach's Alpha indicates greater reliability; however, an excessively high coefficient (greater than 0.95) may suggest redundancy within the scale.
Hair & Ctg (2006) gave some rules for evaluating the scale as follows:
The "Corrected Item - Total correlation" measures the association between observed variables within a specific factor It is recommended to remove items when the total correlation falls below 0.3.
Table 3.3: Reliability Statistics on Independent variables
Cronbach’s Alpha if item deleted
Note: Table 3.3 shows the the result of Cronbach’s Alpha Test on Independent variables The data collected by SPSS 20
The test results indicate that the scale demonstrates high reliability, with all observed variables exhibiting a total correlation coefficient of at least 0.3 Additionally, the lowest Cronbach's Alpha coefficient recorded is 0.874, surpassing the acceptable threshold of 0.6 Consequently, the observed variables show a strong correlation with the overall scale.
Table 3.4: Reliability Statistics on Dependent variable
Cronbach’s Alpha if item deleted
Note: Table 3.4 shows the the result of Cronbach’s Alpha Test on Dependent variable The data collected by SPSS 20
The findings indicate a Cronbach’s Alpha coefficient of 0.842, which exceeds the acceptable threshold of 0.6 All observed variables demonstrate strong measurement results, each surpassing 0.3 Additionally, the Cronbach's Alpha values remain higher when items are retained, confirming that the four observed variables within the Satisfaction factor are suitable for retention and further analysis in Exploratory Factor Analysis (EFA).
Hair & Ctg (1998) suggested that exploratory factor analysis (EFA) can effectively condense numerous interrelated observed variables into a more manageable set This reduction not only enhances the meaningfulness of the data but also retains the essential information from the original variables.
According to Hoang Trong & Chu Nguyen Mong Ngoc (2007), there are several criteria that need to be focused on:
The Kaiser-Meyer-Olkin Measure of Sampling Adequacy (KMO) is utilized to assess the relationship between the correlation coefficients of pairs of variables and their partial correlation coefficients A KMO value is deemed appropriate when it falls within the range of 0.5 to 1.
- “Bartlett’s Test of Sphericity”: use to identify the relationship among observed variables in the component If there is a correlation, then Sig Bartlett’s Test < 0,05
- “Initial Eigenvalues”: use to identify the number of components which are kept in model The condition is Eigenvalue >=1
- “Total Variance Explained”: show the percentage of the measured variables are extracted from the component To ensure the model is suitable, the required condition is Total Variance Explained >= 50%
Table 3.5: KMO and Barlett's Test on Independent variables
Kaiser-Meyer-Olkin Measure of Sampling Adequacy (KMO): 0.820
Note: Table 3.5 shows the result of KMO and Barlett’s Test on Independent variables The data collected by SPSS 20
The EFA results indicate a high level of reliability, with a KMO value of 0.820 and a significant Bartlett’s Test result of 0.000 The Total Variance Explained for the fifth component is 83.047%, and the initial Eigenvalue is 1.709, confirming that the observed variables converge into five components, accounting for 83.047% of the variation in the research data The rotation matrix results classify 19 observed variables into five factors, with none having a Factor Loading coefficient greater than 0.5, making them suitable for regression analysis.
Table 3.6: KMO and Barlett's Test on Dependent variable
Kaiser-Meyer-Olkin Measure of Sampling Adequacy (KMO): 0.710
Note: Table 3.6 shows the result of KMO and Barlett’s Test on Dependent variable The data collected by SPSS 20
Similar to the results of EFA analysis for the independent variables, the EFA analysis for the dependent variable in satisfaction also has good quality result: KMO
= 0.710 (> 0.5), Sig = 0.000 (< 0.05) through Bartlett’s Test The component explains
52 there is 67.915% of the variation of four observed variables which take part in EFA
The component matrix table reveals that only one component was extracted, and rotation of the solution is not possible With a factor loading exceeding 0.5, an Eigenvalue of 2.717 (greater than 1), and a cumulative percentage of 67.915% (above 50%), the results are deemed appropriate for regression analysis.
3.3.3 Regression analysis a Pearson Correlation Analysis
Pearson’s correlation coefficient is a statistical measure that quantifies the relationship between two continuous variables It is widely regarded as the most effective method for assessing the association between variables, as it relies on the principles of covariance.
Note: Table 3.7 shows the result of Pearson correlation The data collected by SPSS 20
The analysis indicates a significant correlation between the dependent variable "Satisfaction" and all independent variables, with a significance level of 0.000 (p < 0.05) Additionally, the correlation coefficients for the five independent variables exceed 0.3, suggesting a strong relationship with the dependent variable Moreover, Pearson correlation analysis does not reveal any signs of collinearity among the independent variables.
Regression analysis is a quantitative research method which is used to test the relationships between a dependent variable “Satisfaction” and the independent variables
The basic form of regression models would be:
SAS = 𝛽 0 + 𝛽 1 *REL + 𝛽 2 *RES + 𝛽 3 *TAN + 𝛽 4 *ASS + 𝛽 5 *EMP
SAS: Mean value of variales in “Satisfaction”
REL: Mean value of variales in “Reliability”
RES: Mean value of variales in “Responsiveness”
TAN: Mean value of variales in “Tangibility”
ASS: Mean value of variales in “Assurance”
EMP: Mean value of variales in “Empathy”
• The results of regression analysis
- Evaluating the suitability of regression models:
Note: Table 3.8 shows the result of Regression Analysis The data collected by SPSS 20
The R square value of 66.9% and Adjusted R square of 65.4% indicate the extent to which independent variables influence the dependent variable, demonstrating the regression model's suitability Specifically, the Adjusted R square of 0.654 reveals that the independent variables account for 65.4% of the variation in the dependent variable, while the remaining 34.6% is attributed to out-of-model variables and random errors Additionally, the Durbin-Watson value of 2.089 falls within the acceptable range of 1.5 to 2.5, confirming that the assumption of first-order autocorrelation is not violated (Yahua Qiao, 2011).
Note: Table 3.9 shows the result of Regression Analysis The data collected by SPSS 20
The ANOVA table presents the F test results, which assess the validity of the regression model With an F value of 44.066 and a significance value of 0.000 (less than 0.05), it indicates that the independent variables in the regression model significantly explain the variation in the dependent variable Therefore, we can conclude that the regression model is appropriate.
- Regression analysis’s result and the important of each component
The results of the regression analysis in the Coefficients table show that 5 components, namely “Reliability”, “Responsiveness”, “Tangibility”, “Assurance”,
Empathy has a direct correlation with customer satisfaction, as indicated by significance values below 0.05, confirming the acceptance of all previously stated hypotheses This suggests that five observed variables significantly influence the dependent variable Furthermore, the analysis of the Beta coefficient reveals a positive linear relationship between the independent variables and customer satisfaction, with Beta values greater than 0.
Note: Table 3.10 shows the result of Regression Analysis The data collected by SPSS 20
Hair & Ctg (2009) indicate that a Variance Inflation Factor (VIF) greater than 10 signifies strong multicollinearity However, the data presented in the table demonstrates that the VIF coefficients for the independent variables are less than 2, and the Tolerance values exceed 0.1, allowing us to conclude that multicollinearity is not present in the model.
SAS = 0.842 + 0.216*REL + 0.124*RES + 0.187*TAN + 0.200*ASS + 0.141*EMP
SAS = 0.312*REL + 0.184*RES + 0.279*TAN + 0.303*ASS + 0.208*EMP
The regression model reveals that five independent variables—reliability, responsiveness, tangibility, assurance, and empathy—equally influence customer satisfaction in banking services Among these, reliability stands out as the most valued factor by customers, highlighting the bank's strong reputation and positive perception in the market.