(Tiểu luận) the influence of e servicequality on customersatisfaction and loyalty inthe banking industry incovid 19 pandemic invietnam

This research will help us to know factors affecting e-banking usersare service quality, which consists of reliability, privacy and security, design on application or website, and custom

TON DUC THANG UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

INTERNATIONAL BUSINESS



REPORT BUSINESS RESEARCH METHODS

THE INFLUENCE OF E-SERVICE QUALITY ON CUSTOMER

SATISFACTION AND LOYALTY IN THE BANKING INDUSTRY IN COVID 19 PANDEMIC IN

VIETNAM

Lecturer: TRAN THI VAN TRANG Group: 1 – Shift: 2 (Tuesday)

Class: 20K70401 Course: 24

Ho Chi Minh City, 14 May 2022

LIST OF GROUP MEMBERS

NT Chapter 1

Chapter 3

(3.3)

Chapter 4

(4.2 – 4.2.1 – 4.2.1.1 –4.2.1.2 – 4.2.2 –4.2.2.1 – 4.2.2.2)

Chapter 5

(5.2)

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ACKNOWLEDGEMENT

First and foremost, our team wishes to express their heartfelt gratitude to Ms Tran Thi Van Trang Ms Trang was the one who provided us with unwavering assistance and careful direction throughout our research and survey on the topic of "The influence

of e-service quality on customer satisfaction and loyalty in the banking industry in Covid 19 pandemic in VietNam." She was a passionate help and provided specific guidance on the direction of

development, the direction of the study of the subject, as well as guidance on the appropriate approach, presentation of content, to

go in and analysis of the research laid out, based on her valuable expertise and research experience That is why we can conduct our survey and research in the most efficient manner feasible Second, we would like to express our gratitude to Ton Duc Thang University's Department of Business Administration for providing

us with the opportunity to research and study the subject

Nonetheless, due to time constraints and a lack of practical expertise, we were bound to be defective and anxious to obtain feedback from lecturers and friends Thank you a lot

Research Team

research… 100% (1)

10

Quizz 3 phần H2 hello

Online banking services in Vietnam are currently developing quitestrongly, especially in cities and urban areas Due to theoutstanding features of E Banking services such as time-saving,cost-saving, convenient transaction, etc., commercial banks inVietnam have been interested in developing this type of serviceand have the right policy appropriate administrative reform policy

to meet the development trend Aware of this, each bank tries todesign, step by step perfect the E Banking service and deploystrong promotions and communication programs to attractcustomers It helps banks reduce costs and risks, save time forcustomers and banks, in line with the general development trend

of the entire commercial banking system, and keep pace with thedevelopment of public science This article focuses on analyzingand understanding the correlation between customer loyalty toebanking services from central banks and private banks acrossVietnam during the Covid-19 pandemic Based on collecting datafrom customer groups from universities, we will analyze and come

up with appropriate strategies so that specific banks in Vietnamcan upgrade their ebanking services to retain old customers aswell as collect more potential customers during this covidpandemic

TABLE OF CONTENT

Businessresearch… None

Brmmmm - Trường Đại học Tôn Đức…

Businessresearch… None

19

CHAPTER 1: INTRODUCTION 1

1.1 Introduction 1

1.1.1 Background: 1

1.1.2 Specific problem : 2

1.2 Problem statement 3

1.2.1 Reason for choosing the topic 3

1.3 Purpose of research 3

1.3.1 Theoretical purpose 3

1.3.2 Practical purpose 4

1.4 Research question 4

1.5 Significance of research 4

1.5.1 Theoretical Significance 4

1.5.2 Practical significance 5

CHAPTER 2: LITERATURE REVIEW 6

2.1 Research concepts & definitions 6

2.2 Previous research 8

2.2.1 Summary key paper: 8

2.2.2 Summary support paper: 9

2.3 Proposal models and hypothesis 9

2.3.1 Research model 9

2.3.2 Hypothesis 10

CHAPTER 3: RESEARCH METHODOLOGY 14

3.1 Research design 14

3.2 Questionnaires design 14

3.3 Measurement scale 15

3.4 Sampling 19

3.5 Collection method 20

3.6 Data analysis method 20

CHAPTER 4: DATA ANALYSIS 21

4.1 Descriptive Statistics 21

4.2 Scale measurement/model 23

4.2.1 Reliability testing 23

4.2.2 Assessing the accuracy of the model 27

4.3 Structure model 29

4.3.1 The overall coefficient defines R Square 29

4.3.2 Path coefficient 30

4.4 Results of verifying research hypotheses 33

CHAPTER 5: CONCLUSION, AND RECOMMENDATIONS/ LIMITATIONS .36

5.1 Research summary 36

5.2 Recommendations 38

5.3 Limitations and directions for future research 40

CONCLUSION 41

REFERENCES 42

LIST OF TABL Table 1 Measurement scale 15

Table 2 Parameters of variables in Smart Pls 3 21

Table 3 Demographic characteristics based on 274 samples 21

Table 4 Conformity results of factors 23

Table 5 Conformity results of factors 25

Table 6 Discriminant value of factors according to Fornell & Larcker .28

Table 7 R - Square 30

Table 8 Path Coefficients (Bootstrapping) 31

Table 9 Path Coefficients include T Statistics (Bootstrapping) 32

Table 10 Results of verifying research hypotheses 34

LIST OF FIGURE Figure 1 Conceptual framework 8

Figure 2 Research Model by Authors Synthesized 10

Figure 3 Model analysis results 35

LIST OF ABBREVIATIONS AND ACRONYMS

CSS

Customer service and Support

AVE Average Variance Extracted

Smart PLS Exploratory Factor Analysis

N Sample size

applications, and integration of many advanced technology platforms, eBanking Vietnam is going further and further

According to Statista 2020, there are more than 120 million mobilesubscribers in Vietnam, of which more than 75% can register to use financial services, banking, and online payments This is a keyboard for eBanking development, and originally, the mobile platform came first Especially in the context of COVID19

spreading globally as well as in Vietnam, non-cash payment can beprioritized in terms of safety, limiting the spread and spread, this isalso a meaningful explanation for the strong trend of converting cash payments to non-cash payments

According to the Government's statistical report, there are

currently 68.17 million people using Internet services in Vietnam

as of January 2020; Mobile Banking has a growth rate of 200% andcurrently has about 30 million people using the bank payment system every day However, in addition to money transfer servicesinside and outside the system, consumers do not regularly use E-Banking's additional services, even without knowing the existence

savings deposit, international money transfer, credit card

payment, insurance purchase or ATM card locking/opening also have an average awareness (only 30-60% of people are aware of this issue) and low usage (about 20% of users)

To explain the above phenomenon, the authors of this article think that many banks have not yet implemented expanded services as well as the digital conversion motivation of E-Banking users as the main reason for the level of awareness and low additional service usage At the present time, customers use E-Banking mainly in theability to be proactive, save transaction time and be flexible in transaction locations (>80% of customers) Therefore, the form of using E-Banking by consumers has only stopped at normal daily transactions (transfer, phone top-up, electricity and water

payment) but has not been extended to other services Services that need assurance of confidentiality and need direct advice such

as savings or insurance

When asked about the barriers preventing them from using Banking, the majority of users said that the weakness of this platform is that it still has limited features (for example, low transaction limits) Moreover, some users still do not trust E-Banking because the system is not stable or there is an error causing the transaction to be interrupted In addition, the desire todirectly listen to advice at the table is also one of the important barriers in the eyes of users during the transition to a digital platform However, in general, most of the current E-Banking services of the above banks meet the basic needs of customers, even reaching their expectations with only 16% of customers expressing dissatisfaction with digital banking applications But the

E-problem is we’re currently living in a middle of a pandemic, so the desire of being able to directly listen to advice at the table instead

of using e-banking apps is hard to please So that the main reason for us to choose this topic is to analyze and make

recommendations for banks to develope their e-banking apps to reach their customers needs and from that forming a behaviour in using e-banking more often for every citizens in Viet Nam

1.1.2 Specific problem :

The Covid 19 pandemic that suddenly hit Vietnam at the beginning

of 2020 forced us to isolate and limit social activities such as shopping and playing All trading and trading activities are restricted and stagnant, forcing us to gradually shift to buying and selling and mainly using e-banking services With the growth rate

of Mobile banking up to 200% and about 30 million people using banking payment services every day in Vietnam Banks in Vietnamneed to know how to retain and find their customers through changing their interface and services to suit the needs of their customers over time

1.2 Problem statement

1.2.1 Reason for choosing the topic

The purpose of this research paper is to provide recommendations for banks based on real research to maintain customer satisfactionand loyalty during the covid pandemic

1/ Investigate the factor influence the changes in the economic structure as well as the way people consume and live through the

2/ As citizens of Generation Z, we usually used ebanking as an alternative to cash early on because of its convenience And the covid pandemic has made the use of e banking more necessary than ever It's not limited to young people, but everyone should use e banking to do some sort of social distance.

3/ Deep consumer insights will give banks a competitive edge when planning marketing campaigns, social media campaigns and upgrading their app and e banking system

1.3.2 Practical purpose

With the development level of science and technology as today, the application of electronic services in the business model is very necessary That creates high efficiency and fast Therefore, with the practical purpose of this study, it will help banks to consider developed directions in the future At the same time, building customer satisfaction and loyalty through putting them at the center

Moreover, the study will also point out the difficulties and risks to help businesses prevent, typically during the Covid-19 pandemic And it will also mention the advantages in improving e-services to help businesses conquer customers effectively.

2/ What is the extent of the impact of these factors?

3/ What is the implication/ recommendation/ suggestion to the e banking industry?

1.5 Significance of research

1.5.1 Theoretical Significance

If the study questions are clarified, our team believes that this research has actual worth When our research was successful, the first thing we did was make a significant contribution to the foundation of tectonic theory, demonstrating that the research model described in our earlier papers is both reasonable and extremely efficient when carried out in our country

1.5.2 Practical significance

This research will help us to know factors affecting e-banking usersare service quality, which consists of reliability, privacy and security, design on application or website, and customer service and assistance, whereas the dependent variables in this study are e-banking user satisfaction and e-banking user loyalty This study was examined through the eyes of an e-banking user

Nonprobability sampling and purposive sampling were used in this study

CHAPTER 2: LITERATURE REVIEW

2.1 Research concepts & definitions

To fulfill the research objectives, this study proposes three main variables, and two definitions:

Internet Banking, also known as net-banking or online banking, is

an electronic payment system that enables the customer of a bank

or a financial institution to make financial or non-financial

transactions online via the internet This service gives online access to almost every banking service, traditionally available through a local branch including fund transfers, deposits, and online bill payments to the customers

Internet banking can be accessed by any individual who has registered for online banking at the bank, having an active bank account or any financial institution After registering for online banking facilities, a customer need not visit the bank every time he/she wants to avail a banking service It is not just convenient but also a secure method of banking Net banking portals are secured by unique User/Customer IDs and passwords

E-banking service quality and e-banking loyalty (EBSQ)

It is extensively discussed in literature that loyalty depends on EBSQ There are four dimensions of EBSQ, namely, reliability, privacy and security, website design and customer service and support of e- banking

The first dimension, reliability in e-banking holds great importance

as response of customers is crucial Reliability is one of the factors which can influence responses

The second dimension, privacy and security, reflects the degree towhich an e-banking user submits personal information on an e-banking platform with confidence

The third dimension of EBSQ, website design is defined as various interactive features of the e-banking service that helps provide consumers with structure of transaction during and summary afterwards the structure of processing a transaction and more

The fourth dimension, customer service and support can be explained as the rapidity of retort toward any delinquent reported

by user during or after service experience The users here can be referred as both individuals and organizations

E-banking service quality and e-banking satisfaction

The relationship of EBSQ and satisfaction remains a great

academic debate Contradictory findings and views of researchers can be noted, as some argued EBSQ as an antecedent of e-banking customer satisfaction Older studies termed satisfaction

as antecedent of service quality and the findings of these classicalstudies cannot be neglected even if the service quality is now read

as electronic service quality and digital aspect is also attached to satisfaction and loyalty An empirical analysis of customer

perception of US banks on service quality reports higher quality of EBSQ leads to satisfaction and for greater customer loyalty, privacy and navigation interface must be focused The service

providers especially in e-banking are strictly advised to ensure focus on high level of secure information, confidentiality and transaction privacy

Mediating role of e-banking satisfaction

Generally, businesses always strive for higher customer

satisfaction, being a core

element Beyond doubt, loyalty of customers can be attained by provision of higher

levels of satisfaction to them E-satisfaction leads toward

attitudinal loyalty consequently leaving a positive impact on behavior E-satisfaction in banking can leads to more usage of banking services with higher possibilities of e-loyalty

Figure 1 Conceptual framework

2.2 Previous research

2.2.1 Summary key paper:

“Impact of e-banking service quality on e-loyalty in pandemic times through interplay of e-satisfaction”

The purpose of this study is to investigate the impact of e-banking service quality on e-banking loyalty via a mediating effect of e-banking satisfaction During COVID-19, banking customers of threedomestic systemically important banks in Pakistan were polled to assess the electronic services offered by these institutions

The information was gathered utilizing a customized questionnaire and emails and messaging apps The database of a local

marketing firm in Pakistan was utilized, and the analysis contained

976 replies To examine the study's hypotheses, structural equation modeling was employed

According to the data, e-banking loyalty is boosted by reliability and website design, especially during COVID-19 The relationship between e-banking privacy and security and e-banking loyalty wasfound to be totally mediated by e-banking satisfaction;

nevertheless, the indirect influence of website dependability and security was found to be significant

The relationship between design and e-banking loyalty was partially mediated

Customers value secure e-banking platforms, as evidenced by the mediating effect of e-banking satisfaction between privacy and security and e banking loyalty Because of privacy considerations, there may be some difference in their loyalty

2.2.2 Summary support paper:

“Internet banking service quality, e-customer satisfaction and loyalty: the modified e-SERVQUAL model”

The impact of service quality parameters in Internet banking on customer satisfaction and loyalty is investigated in this study Based on distinct conceptions, this study attempts to investigate the structural relationship between Internet banking service quality, electronic customer happiness, and electronic customer loyalty

e-Customer satisfaction is shown to have a substantial and positive impact on customer loyalty, whereas customer satisfaction is found to have a significant and positive impact on customer loyalty

The findings show that service quality is critical in every society,

as it has formed the foundation for how customers interpret online banking and, ultimately, how they interact and function with onlineservices

2.3 Proposal models and hypothesis

in a significant repose toward an event within an environment (Shankar and Jebarajakirthy, 2019) There are multiple instances inliterature where CMR theory is used to connect the mechanism of aspects of individual response and the quality of services (Bowen and Chen, 2001; Brady and Robertson, 2001; Shankar and Jebarajakirthy, 2019; Sivapalan and Jebarajakirthy, 2017);

however, usage in COVID-19 contributes into the CMR literature differently The response to environment or an event (COVID-19 in case of this study) elucidates the loyalty of customers in e-banking, which can be termed as an addition in the theoretical aspects

Figure 2 Research Model by Authors Synthesized

2.3.2 Hypothesis

E-banking service quality and e-banking loyalty (EBSQ)

It is extensively discussed in literature that loyalty depends on EBSQ (Hussien and Aziz, 2017; Shankar and Jebarajakirthy, 2019) There are four dimensions of EBSQ, namely, reliability, privacy andsecurity, website design and customer service and support of e-banking

The first dimension, reliability in e-banking holds great importance

as response of customers is crucial Reliability is one of the factors which can influence responses, however timely processing of banking transactions with zero errors is often taken essentially in judging the reality of e-banking service providers (Blut et al., 2014;Liang and Pei-Ching, 2015; Saccani et al., 2014)

H1 Reliability in banking services positively influences banking loyalty.

e-The second dimension, privacy and security, reflects the degree towhich an e-banking user submits personal information on an e-banking platform with confidence (Muturi et al., 2013) Because there is no in-person connection, e-banking causes major privacy difficulties for users (Kim et al., 2009; Shankar and Jebarajakirthy, 2019) However, trust has risen in favor of service providers, and the necessary customer satisfaction response can be obtained through trust (Safi and Awan, 2018) Higher loyalty emerges from

a better code of conduct for privacy and safety (Orel and Kara, 2014; Thaichon et al., 2014)

H2 Privacy and security in e-banking services positively influence e-banking loyalty.

The third dimension of EBSQ, website design is defined as various interactive features of the e-banking service helps provide consumers with structure of transaction during and summary afterwards the structure of processing a transaction and more (Wolfinbarger and Gilly, 2003) Higher level of satisfaction can be achieved through an updated website (Kim et al., 2009) and enhanced interactive experience The traits of interactive websitesenhances trust, satisfaction and loyalty toward the e-banking results (Lee et al., 2006).

H3 Website design in banking services positively influences banking loyalty.

e-The fourth dimension, customer service and support can be explained as the rapidity of retort toward any delinquent reported

by user during or after service experience The users here can be referred as both individuals and organizations (Blut et al., 2015) Similar to the individual users, organizations are also much concerned, which sometimes also have a deeper impression on employees as well (Awan et al., 2017) The support provided by the banking professional are considered more secured and assuredwhile any trouble is faced in India (Shankar and Jebarajakirthy, 2019) and similar case is expected in Pakistan as well The adaptation in website design leads consumers to trouble (Thaichon

et al., 2014) while the quick and effective solution provided on time to user results into higher satisfaction leading to loyalty in electronic environments generally (Chaudhry et al., 2009) and in e-banking more specifically (Shankar and Jebarajakirthy, 2019) Resultantly, all four dimensions are hypothesized as follows for empirical testing

H4 Customer service and support in e-banking services positively influence e-banking loyalty.

The relationship of EBSQ and satisfaction remains a great

academic debate (Esengun et al., 2006; Haider et al., 2014; Shankar and Jebarajakirthy, 2019; Wang and Ma, 2010; Shankar and Jebarajakirthy, 2019) Reliability is the ability to perform an agreed task reliably and correctly Banks are known for their dependability and consistency in conducting financial operations, according to Singh and Kaur (2013); nevertheless, it is equally vital

to exhibit this dependability through web-based services

According to Cheng and Chan (2009), because digital banking necessitates the transmission of private and personal data, banking websites must be dependable, trustworthy, and safe As aresult, this characteristic is regarded as an essential component in this study's analysis of the influence of e-banking on customer satisfaction and loyalty Previous research has found a link between reliability and ECS that is both positive and substantial (Hammoud et al., 2018; Kettinger and Lee, 2005; Tan and Teo, 2000)

H5 Reliability in banking services positively influences banking satisfaction.

e-To achieve satisfaction and for greater customer loyalty, privacy and navigation interface must be focused (Bressolles et al., 2014) The service providers especially in e-banking are strictly advised toensure focus on high level of secure information, confidentiality and transaction privacy (Brun et al., 2014; Yu et al., 2015)

also reported in this context (Kassim and Abdullah, 2010) Hence, below hypothesis are formulated to empirically test in e-banking during COVID-19.

H6 Privacy and security in e-banking services positively influence e-banking satisfaction.

An empirical analysis of customer perception of US banks on service quality reports higher quality of EBSQ leads to satisfaction (Foroughi et al., 2019) Website attributes undoubtedly play a vital role in improving customer satisfaction (Amin, 2016; Roy et al., 2012) however a variety of attributes have different impressions

on the minds of consumers (Bressolles et al., 2014) This vividly demonstrated the relationship between website design and e-banking customer satisfaction

H7 Website design in banking services positively influences banking satisfaction.

e-Support services provided during e-banking should be less technical as satisfaction among users varies because of

technicality of services (Black et al., 2014) Thus customer service and support need to be smooth and favorable for achieving higher satisfaction (Shankar and Jebarajakirthy, 2019)

H8 Customer service and support in e-banking services positively influence e-banking satisfaction.

CHAPTER 3: RESEARCH

METHODOLOGY

3.1 Research design

The group's research process is divided into two stages:

experimental and formal research Because of the limited time andresources available at the experimental stage, the team does not use any of the methods, instead relying on previous studies' models and scales to adjust the survey subjects to be university students in Vietnam Later, when the research entered the formal phase, the group decided to take a quantitative approach by conducting a survey directly through questionnaires Concerning the survey, after reviewing the questionnaire, I translated it into Vietnamese in order to better suit Vietnamese students, and I submitted it to their staff for review and approval Following the acceptance of the questionnaire, the group began requesting the correct study group that the students were studying at universities

in Ho Chi Minh City, Vietnam The Google Form tool was used to create the questionnaire, which featured a number of simple questions on the personal information part as well as the

important questions

3.2 Questionnaires design

A structured questionnaire is used to collect the sample for this study The framework was created based on the preliminary study's findings The questionnaire was divided into two sections:

Gender, age, industry, and personal income were assembled to characterize the study's participants and understand the major individuals who completed the questionnaires based on

demographic standards

Part 2: Survey content

Leading Factors, Risk Perception, Social Effect, Usefulness, Engagement, Perceived Ease of Use and Customer Satisfaction

3.3 Measurement scale

Measurement scales for variables in the model

Table 1 Measurement scale

RE2 E-banking always ensures the

fastest service time

My financial information isprotected on an e-banking

platform

PS3 Transaction history during

Web Design

(WD) WD1

Easy to use interface Hair

et al., 2010

et al., 2018

et al., 2018

ES4 Do bank promotions or

incentives make you happy?