Luận văn factors affecting the satisfaction of customers to internet banking of vietnam joint stock commercial bank for industry and trade vietinbank ba dinh branch

‘The relationship berween customer satisfaction and service quality 12 2.3, Factors affecting the Customers’ Satisfaction to Internet Bankin 2.4, Reality of internet banking services b

UNIVERSITE DE NANTES

Master Finance- Banking - Insurance

(South East Asia) Cohort 2016 -02018

MASTER THESIS

Factors affecting the satisfaction of customers to Internet

Banking of Vietnam Joint Stock Commercial Bank for Industry

and Trade(Vietinbank) - Ba Dinh Branch

Author: NGUYEN THI THIEN HUONG

Supervisor: PhD DAO TUNG

Hanoi, 05/2018

Intemational School - Vietnam National University, Ha Noi; Protessors of Nantes University

French Republic have enthusiastically imparted knowledge to me during the past time

L express my deepest gralilude to my Supervisor, PhD Dao Tung, who have helped me during

the period of studying and completing this Thesis

Finally, | would like to thank my family, colleagnes and friends for their support and sharing experiences during the thesis

‘The relationship berween customer satisfaction and service quality 12

2.3, Factors affecting the Customers’ Satisfaction to Internet Bankin

2.4, Reality of internet banking services by Ba Dinh branch

3-41 The development of internet banking services of Ba Dinh ranel, L5

2.4.2 Characteristics of internet banking services of Ba Dinh Branch 16

244 The results of internet banking services of the branch in recent years 17

42.1, Explanatory factor analysis of customer satisfaction factor 26 4.2.2 Explanatory factor analysis of the antecedents of customer satisfaction 27

4.3 Rehavior of using Internet Banking services of the samples - 33

Table 2 1 Factors afecting to customers satisfaction of using intemet banking, 18

‘rable 2 2 implementation of Internet Banking in VietinBank Ba Dinh Branch - 16

Table 2 4 Business results of Intemet Banking services 17 Table A3- 1 Independent Sample T-Test of gender 57

‘Table A3- 4 One-Way ANOVA for how long of using Internet banking services s8 Tabls A3- 5 One-Way ANOVA for the Gsquency of using Internet banking services 59 Table A3- 6 One-Way ANOVA for the service that the respondents use the most 50

‘Table A4- 1 Mean value and standard deviation analysis - - - 60 Table A4- 2 KMO valu und Barltett’s Test of custorner satisfaction factor 61 Table A4- 3 Tolal vasinnec explained by the componenis of customer satisfaction Caetor 61 Table A4- 4 Component matrix of customer satisfaction factor 61

Table A4- 5 KMO value and Bartlett’s Test of the antecedents of customer satisfaction facfoT 62

Table Ad- 6 Total variance cxplaincd by componcnis of the antcecdents of customer

Table A4- 7 Component matrix of the antecedents of customer satisfaction factor 63

Table A5- 1 Reliability test of customer satisfaction Ÿactor 64

'Table A5- 2 Reliability tsst of reliability factor 64

‘rable AS- 3 Reliability test of ease of use factor - - - - 64 Tablc A5- 4 Reliability

Table A3- 5 Reliability test of speed of responses factor

‘rable AS- 6 Keliability test of continuous improvement factor - 65

Table A5- 7 Reliability test of products/services điversifientiơn faolor 65

LIST OF FIGURES Figure 3, 1 Proposed Mode!

Figure A2 4 Monthly income description 4 Figure A2 5 Døscripiơn o[ how long the respondenls se Vieinbank's Irlsmel banking

tigure A2 6 DescripHon of fequency that the respondents use Vietinbank’s Intemet banking

Figure A2 7 Description of which Vietinbank’s Intemet banking services the respondents use

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created the basic iegal framework for electronic transactions

Titernol banking services have boon implomented in Vietnam bul it has developed strongly especially in urban areas Due to the preeminent features of intemet banking such as saving time and money, convenient transaction commercial banks in Vietnam have

cloped this type of service and crcated the compelitive environment to win customers

Meanwhile, customers are aware of the benefits of internet banking but are still concemed abont the safety and security of internet banking Therefore, customers should undergo the process of analyzing the choice between different types of services and between different brands to decide the behavior of using intemet banking

Internet Banking is a new type of banking service in Vietnam and therefore, in-depth and comprehensive research into consumers’ satisfaction with Internet Banking will be significant for banks as well as for the peuple Ihomsclves

Starling from these practical issues, with the desire to improve the quality of Internet Banking service, this research topic “Mactors affecting the satisfaction of customers to Internet Ranking ofVietnam Joint Stack Commercial Bank for Industry and Trade (Vietinbank) - Ba Din Branch" hopes to contribute little help to have orientation and solution

to improve the quality of service and make the most use of it

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CHAPTER 1: INTRODUCTION 1.1 Research reasomale:

‘The development of information technology in banking has significantly changed the business strategy of many commercial banks instead of providing traditional banking services, commercial banks arc taking advantage of information technology, especially the intemet, to provide customers with modem banking services (this is called electronic

conveniently, and save travel tine, transaction costs

Vietnam is one of the countries with the highest number of Intemet users in the world (nearly 40 million users, 14 in the world), ‘The high mumber of internet users with strong growth has created favorable conditions for the development of o-commet

in gonerat and c-banking in particular Currently, the Isvel of competition in e-banking serviees

in Vietnam is getting higher everyday, if in 2004 Viemam had only three banks providing electronic banking services, by the end of 2014 there was 43 banks that provided the service Therefore, in order to be competitive in this arca, Vietnamese commercial banks arc actively investing in electronic infrastructure, however, banks have yet to meet the growing demand

of customers so they still have not satisfied their customers and have not fonnd the loyal customers

On the other hand, in order to be competitive in e-banking, banks need to understand the criteria that customers use to evaluate the quality of e-banking services, so that they can

have solutions to improve the quality of service and customer satisfaction, To do so, it is

necessary to build a research model that detines the relationships among criteria that reflect the quality of e-banking services with customer satisfaction and loyalty under the impact of other inlermediaries (switching costs, custorner trust ), thus providing dircelion for the

competitive strategy of banks

With the online transaction utilities, just by one single-mouse-click, enstomers can make all foms of basic banking such as transfoning, placing orders and transferring moncy periodically and check any account balance whenever they want

Many previous studies measured customer satisfaction in traditional banking environments, where direct interaction between customers and bankers occurs (Johnston

1995 Bahia & Nantel 2000) Nowever, for online banking, the interaction between

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customers and banks does not occur directly on the Internet Therafore, Vietinhank needs to understand the customer's perception of online banking services, the expectations of

customers 1o cvaluale the products thal the bank provided is satisfactory or nol

Therefore, the study “Factors affecting the satisfaction of customers to Internet

Banking af Vietnam Joint Stock Cammercial Bank for Industry and Trade

(Vietinbank) - Ba Dinh Branch"is very neccssary and timely It helps Victinbank to have a more general view of the satisfaction of internet banking from the perspective of individual

consumers ‘l‘hrough this research, to find out what factors most affect customer satisfaction,

in order to maintain the development, besides to overcome the factors are not satisfactory to

increasingly satisfy customer From that Vietinbank-Ba Dinh Branch will have more effective plans for its products and services, satisfying the criteria of convenience and safety

"whenever and wherever’, which product gữn for

1.2 Questions and research objects:

The core abjcetive af the research is fo foens on the factors that affeel the personal

satisfaction of customers using online banking scrviccs of Victinbank, Ba Dinh Branch

Identifying these factors has important implications for the managers of Vietinbank, based

on that, they will have the right direction, development and investment for their products and services Therefore, the research objectstocus on:

- Description of customers’ behavior of using Intemet Banking services

- Developing a model to study the factors thai affeot the satisfaction of customers using intemet banking

- Recommend some solution to the banking management to satisfy customers’ need

To properly address the tescarch objectives, set oul, the following rescareh questions

should be clarified:

- What factors affect the satisfaction of individual customers using online banking

services of Victinbank, Ba Dinh Branch?

- Research will use specific methods to build and test the model of factors that affect customer satisfaction, thereby determining which factors have the most influence on

satisfaction of customers? Based on that, the wnter will find a different approach to

customers with traditional methods and bank managers also have direction in the business of Vietinbank, especially the online banking service

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1.3.7 Research area:

Survey's time: from November 2017 to May 2018

Survey conducted on 200 individual customers are using online banking services of Vietinbank, Ba Dinh Branch

1.3.3, Research methods:

The formal study was conducted by means of quantitative research using direct interview techniques through detailed questionnaire The questionnaire contained 30 slalernenis about satisfaction and the factors thai affected customer satisfaction Bach statement is measured on a 5-point Likert scale Sampling is a method of quota combined with convenience After three months of data collection, 200 usefill questionnaires were

processed and analyzed Use SPSS 16.0 software Lo assis! im data processin

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1.4 Practical meaning of the topic

‘This research has brought some theoretical as well as practical implications for VictinPiank that has been deploying internet banking Internet banking is a now service thai

‘Vietinbank has just launched in recent yours, Acosss lo Iltis service is relatively new to most

customers Therefore, the topic of focusing on cogmrive and customer needs for intemet banking services is very practical for VietinBank executives, to capture the main factors affecting the Satisfaction of customers This is a way for VictinBank Ba Dinh to improve the quality of services, enhance competitiveness, contribute to the direction of the government is

to develop non-cash economy,

1.5 Overview af past research on the subject:

In order to carry out the study, the author consulted many directly and indirectly relevant research papers and works of scholars at home and abroad to carry out the study of

sobricly and toncliness as well as constructing Rescarch modols

The quality of service m general and the satisfaction of customers in providing services of enterprises in particular is a matter of decisiveness, competitiveness and caslomner foyally Customer Satisihetion Rescarch is widcly regarded nol only by domestic

and foreign researchers, but also by various business sectors in many produetion areas,

Customer satisfaction according to many studies is the satisfaction of customers, express services provided by the business mect the requirements and expectations of customers Authors often value customer satisfaction through quality of service, if customers value quality services, they are satisfied with the service they provide

Customer Satisfaction Model is associated wilh the service quality model, with the

participation of several authors such as Gronroos (1984), Parasuraman et al (1988), Cronin

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& Taylor (1992) „ Mangold & Babakus (1991), Richard & Allaway (1093), Dobhalkar ác Assoviatcs (1996), Lassar & Associates (2000), Nguyen & Assooialos (2003), Nguyen Thì Mai Trang (Journal of Scisnee and Technology Development Xo 9-2006), Pham Le Hong Nhung et al (2012) Studies of service quality and customer satisfaction of quality of service have come from the Parisuraman study that has built up a mixcd-up tool called Servqual containing 22 items according to the Likert scale Flatter the expectations and feel the customer's actual quality of service Research results show that the five components include: reliability, visibility responsiveness, assurance, and empathy

The MK.Kim and his colleagues' customer satisfaction model is based on customer satisfaction based on six factors: perceived quality, price structure, image brand image, impact of advertising, value added

‘ices, cuslorner service

Nguyen Thi Mai Trang is in the Science and Technology Development Jounal Volume 9, No 18-2006: "Quality of service, satisfaction and loyalty of supermarket cuslamers in Ho Chi Mirih City" This study cxarincs the relationship bebwcon supermarkel service quality salisfiction and customer loyalty when shopping al a supermarkel With the research variables constituting the quality of the supermarket service, the study points to the correlation and impact of the quality of the supermarket service that influences customer satisfaction and loyalty The quality, content and rescarch results in the literature ean be consulted for funding

Neuyen Dang Duy Nhat & Ie Nguyen Tau (Journal af Science and Technology Vol

10, No 8, 2007), “Factors influcneing quality of retail service - rescarch in supermarkets in

Ho Chi Minh City “ This research aims to identify the components of the quality of retail supermarket services in Vietnam through customer surveys and factor analysis to confirm

ce relailquality of supermart measured by the quality of service, ie the components of service quality have a positive relationship with customer satisfaction,

Cronin Taylor (1992) in the study "Measuring sorviee quality: reexamination and extension" published in the journal Marketing expresses the concepts of service quality and the relationship between quality of service and satisfaction of Customer with purchase flattery The rescarch cvaluates the importance of scrvice quality in satisfying customer satisfaction and through its influence on customers’ purchasing habits

1.6 Proposed structure of the thesis

Tn addition io the introduction, conclusion, reference list, list af tables, annex, thesis

is divided into 5 chapters:

Chapter 1: Introduction

Chapter 2: Theoretical Foundation

Chapter 3: Research Methods

Chapter 4: Daia Analysis and Key Minding

Chaptsr5: Conclusion and Managzrnent Iruptication

Sammary of Chapter 1:

Chapter 1 introduced the basics of research, research questions and objectives, research methadalogy and scope, practical meaning of the topic These issuss parlly explain the reasons for choosing the topic and at the same time help the author orient properly to continue to search for the theoretical basis for the research, limit the deviation or inadequate shorlcurnings in the research process

In the next chapter, the rationale for the research topic as well as the building up of the seale are firmly established, contributing to convincing the results of the research ‘These

CHAPTER 2: THEORITICAL FOUNDATION 2.1 E-commerce and Internet Banking

However, the texm e-commerce is still not fully understood (Wigand, 1997) [160]

‘There are many different definitions of e-commerce, some of the world’s leading organizations define e-commerce as:

According to the World Trade Organization (WTO) |177|, "E-commerce involves the production, advertising, sale and distribution of products traded and paid on the internet, tangible, both delivery products as well as digital information through the Internet"

According to the Asis-Pagific Economie Cooperation (APEC) [177] define "F-

commerce involves trade transactions of goods and services between electronic groups (individual) are primarily electronic systems based on the Internet" Commmmication techniques such as cmail, EDI, the Intemet and the Extranct can be used to support c- commerce

According to the European Commission [177]; "Ti-commerce can be defined as the sale, exchange of goods or scrviecs between businesses, familics, individuals and private organizations by transactions, ‘Ihe term inchudes placing orders and transactions through a computer network, but the payment and transportation of goods or services ean be done onting or manually."

Some authors also have different definitions of e-commerce: Zwass (1996) [176] defines e-commerce as shating information, maintaining relationships and conducting transactions through means of using Ticrnel technology

Savoie and Raisinghani (1999) [149], e-commerce allows a consumer to have immediate access to all the products or services that his customers are interested in, at any time, with a simple click

According to Turban et al, (2000) [162], e-commerce is the process of purchasing, selling, shipping, exchanging products, services and information through computer nielworks, including the internet, They also angus thal e-commerce ca be defined in terms af different aspects, such as the process of commmnication, comumerce, service and business

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From the comesponding services, they define: e-commerce is the toal by which goverumenls, companies, consumors and regtlalors aim tp cal down on service costs whils still improving the quality of customer care service and speed up shipping service

In addition, Jelassi and Linders (2004) [95] define e-commerce as solving transaction

problerrs, selling products and athcr services antins

From the definitions and descriptions listed above, it is easy to see that the concept

of e-commerce is used in both broad and narrow sense It is the use of internet to communicate and exchange information about products and services However, e-commerce also includes business transactions related to online ordering and payment (Lin, 2003) [114] 21.2 internet banking service

3.1.2.1 Definition of internet hanking service

So far, there have been a lot of researches on intemet banking topics in different approaches and there are many diffrent concepts about the term “internet banking" Wathin

th s sludy, thơ nufhor oxiraols sơme cơnoopls of "internet banking in

ope of the the

order ta reinforce the rationale for the rescarch problem

According to Apostolos Ath Gkontzinis (2006), internet banking is a software application service that banks provide to customers via the Intemet to conduct account inguizics, transfer money, pay bills, open online accounts, register cards, apply for online

Joans, ete on the Bank's website at any Internet access point and at any time without going

to the counter of a bank

Internist banking is the coneept cut out in the context of electronic banking Although there are quite a few different definitions, according to Daniel (1999), e-banking is the delivery of information and services to banks for customers through different platforms that can be used with cormocled devices such as porsemal computers, mobile phones with

browsers, desktop computers with sotiware installed, phones, and digital TV Based on that e-banking can be divided into PC banking, infemet banking, ‘I'V-based banking and iclephone barking Flcctronic bariking is a structure including

multiple distribution channels In which, according to Arunachalam & Sivasubramanian (2007), online banking is where customers can access their bank accounts through the intenct using a computer ot mobile phone with a web browser

Internat banking allows customers to transfer money online through their accounts as well as control the oparation of these accounts, Customers can access the website, in addition to query the imfommation of the bank, customers can also make Grancial

tuansactions The information that the customer querics is very rich, from customer

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wansaction details to other banking information Customers also have access to other websites to make purchases and make payments to the bank However, when connected to the Intemet, the bank must have a strong security system to deal with the risks on a global scale This is a major obstacle for banks in Vietnam because to attract customers to their

banks to invest in security systems including human resources and equipment cost is very

expensive,

Services provided by the bank for major internet banking services:

- Look up bank information, rates, interest rates, ATM / POS location

- Look up account information: balance, transaction history, transaction details

- Dormestic payment transfer (also for customers who have nol yet had bank accounts)

and overscas

- Ondine savings deposil (scl up ler deposit account)

- Get electronic statements and electronic notices for your payment and credit card

accomnts

- Check and redeem paints, and current promotions

- Pay off your regular loans and credit card debt

- Update your personal information, contact details

- Payment for financial services, telecommumications charges, electricity bills, water,

fax

- Buy phone scratch cards, online game cards, book tours, buy atr tickets

2.1.2.2 Advantages of miernet banking for customers

The emergence of internct banking is a highcr model of banking services such as

Home baiiking or Phone banking With the aim of bringing more convenience to customers,

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the different service attitudes of each bank employee This is a remarkable advantage of Intemet-banking compared to ‘traditional banking

Speed and accuracy: Internet banking allows customers to make and validate transactions

with high accuracy and speed in seconds

Cost savings: Intemet-banking transaction costs are lower than at the counter, customers do

not have to pay extra shipping costs

Efficiency Customers actively manage their entire accounts, capture the details of each

transaction, and provide customers with the most up-to-date but completely free information

trom the bank's website,

2.1.2.3 Advantages of internet banking services for hanks

Cost Savings: Banks do not have to pay rent, do not have to hire a scewity guard, do not

have to hire mors slaff lo work, no cost 10 bay equipmucnt to organize and equip the operation at Office dealing with customers ‘thus, online banking often gives customers more returns than traditional hanks

Extend the scope_and duration of operations: customers are not limited in terms of geographical location as well as the operation time of the bank Customers can trade with banks anywhere, anytime they feel most comfortable

Banking Modemization: Providing Intemet banking services to customers means that banks always use and develop modem technologies, thus helping banks to innovate, integrate and

develop not only serving the domestic market but also towards overseas markets

2.1.24 Disudvantages of internet banking services for customers

Customer Ability: Customers must have certain knowledge in using the internet, the

principles of setting and using passwords, security to use application programs from the

ank, as well ax customers must be able to protcel their ewn account lo avoid being

exploited This is the biggest obstacle when the intcmet banking scrvices were deployed in

Vietnam market, when the usor's knawledge is not really calch up with the new proc

Safe: Personal computer security is very important for Intemet-banking users because hackers infiltrate the computer and they control and access the user’s account ‘lo improve security, computers need to install genuine software from reputable companies, a minimum

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firewall, virus protection software, a password that is difficult enough Gncluding lettering, numbers, uppercase letters, lowercase letters), regularly update new versions of software vendors, etc Besides, users should not visit strange websites, unknown background to avaid dealing with phishing sites, stealing information and money on account

Confidentiality: When making transactions on Intemet-banking, in order to protect their information, the uscr must access the comcet website address on contract Normally banks asc the form of cnerypted informalion transmitted over the internet by a professionat security company ‘These are sites that usually start with https instead of http, and at the bottom of the page there must be a lock image This prevents the user fom visiting the fake website,

Information: When dealing face-to-face with employes, customers will be provided with more complete information, divect consulfations, face-to-face inquizies and more detailed information than Intemet banking

2.1.2.5 Disadvantages of internet banking services for banks

Infrastructure: Most of the banks in Vietnam have poor infrastructure such as network quality, transmission speed, technical errors or terminals do not guarantee the quality leading,

to the quality of serviee is not high In addition, new tisk

such as hackers, compuler viruses

can have a huge impact not only on banks but also on customers One of the most difficult aspects for the bank is the confidentiality of information for ifs customers, the bank's website

has always been the targct of hackers to steal pcrsonal information to rob moncy, customers’

information, etc When connected to the Intemet, the bank must build a strong security

system to deal with the risks on a global scale As a result, the bank has to invest a high cost

of warning systems, moder global technology and effective preventive and management

2.2, Customer Satisfaction:

22.1 Concepts of customer satisfaction

‘The resutis from the research using customer satisfaction index in banking business strategy plan of Le Van Huy, Da Nang University showed that “customer satistaction' is the target far all activitics of all businesses Real business shows that if a 5% incrcuse in layat

customers increases the profit margin by 25-85%, of, on average, a dissatisfied customer

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will tell the frustration to nine listeners and one satisfied customer will tell the other five about the good feelings for their products or services of the business So, when a business docs not satisfy its customers, not only docs the business fosc that customer but it also Loses

a lot of potential customers

Customer satisfaction has been defined in ditferent contexts by different authors Some definitions are given as follows:

- ‘the expression of the product or service that is captured by the consumer

+ Expectation of consumers about the product,

-€

st is porecived or "sacrificed" whan purchasing goods or using products / scrviees

- Tame to evaluate the satisfaction with the product / service

Overall, customer satisfaction is an important issue for the success of any traditional

or onting business (Ho & Wu, 1999) Measuring custorner satisfaction with the quality of service is essential to develop effective marketing research strategies to intluence the minds

of consumers (4airi, 1994) Lispecially, in the increasingly ecommerce environment, the

mmarkel share belwcon companies is constantly changing in the short tom, Therefore, the problem is to find out what customers need from the business or other than how the business must have a business strategy to obtain customer satisfaction, so that the establishment of the long-lerm relationship with customers

Some concepts of customer satisfaction have been drawn from previous studies

Kor Philip Kotler & Keller (2006), customer satisfaction is the level of a person's

sense of place that results from comparing the rusulls oblained from Ihe consumption of the product / services with their own expectations Satisfaction depends on the difference between the results received and the expectations of customers, there are thrse levels for

customer satisfaetior

If the actual results arc lower than cxpected, the customer is not satisfied

If the actual results match the expectations then the customer will be satistied

if the actual results are higher than expected, the customer is very satisfied,

According to Oliver (1997), customer satisfaction is the response of consumers, the comment on the characteristics of products, services ot the self of this product or service

Reflections will show different levels of s

sfaclion with different products and services

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‘Thus, customer satisfaction is the result of a measure of a person's sense of state dorived from comparing the tesulls obtained from @ produet or sorvico with his or her expectations, As for online banking, there are many different views on customer satisfaction

Customer satisfaction is a multifaceted concept, which includes many factors that can affect individual customer satisfiction According to Kenava & Ianasson (2006) int the study of ontine banking quality measurement, four fhetors measure service quality: site design, effectiveness, implementation and availability The system has an impact ơn caslomer satisfaction Suha & 7hao (2005) recommend five factors thal affect customer satisfaction: efficiency, performance, reliability, privacy, feedback, Yang & Tsai (2007) have demonstrated that service quality measurement factors that influence customer

satisfaction in the online purchasing arena include: eflectiven

8, performance, availability privacy, feedback, compensation and affiliation

2.2.2, The relationship between customer satisfaction and service quality

Res archars have boon discussing the telalionship between quality of sorvice and cuslorner sattsfaction over the past decade

Lassar & ctg (2000) conducted several studies on customer satisfaction in the service industry and generally concinded that service quality and satisfaction were two distinct

concepts

But for Zeithaml & Bitner (2000), the notion of customer satisfaction is one that speaks to their satisfaction when consuming a service, also when it comes to quality of service is conecrned about the specific components of the service

Oliver (1994) argues that service quality affects customer satisfaction ‘That is,

quality of service - determined by various factors - is a decisive factor of satisfaction

Namerous practical studios on the relationship between quality of service and customer satisthetion Cronin & Taylor (1992) validated this relationship and concluded that

customer satisfaction was rooted in perceived quality of service Studies by Cronin & ‘Taylor

(1992) and Spreng & Mackoy (1996) Wave concluded thal quality of scrvice is a precondition for satistaction and a major factor in satisfaction, Therefore, we can see the satisfaction of customers about a certain service is also de to the quality of the service it excates

2.3, Factors affecting the Customers’ Satisfaction to Internct Banking:

Based on previous domestic and foreign research models of many authors, the satisfaction of cusiomers when using interne! banking services is reflected through factors such as ease of use, web design, customer service, the availability of the system, confidential

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and security, speed of responses selected for the studies, based on the Criterion & Ptc (2007) PESQ perception service quality inoasurement model, and these factors were yeviewed and veritied by the authors like Ho & Lin (2010), Tran Tuan Mang (2011) In addition, the factors related to internet banking quality in the previous study by Xiuyuan Gao (2013) and Loiacemo ct al (2002) were also included in the model In the context of fierce competition, bank with high reliability is more competitive That why I add

"yeliability"as a factor to myproposed model

ase of Use Cristobal & cig 2007, Kenova & Patrik

(2006), Alba & clg 1997

Parasuraman et al (1988) Confidentiality & Secunty Madu& Madu (2002); Kimé& Lee 2004),

Park & Kim2003, McKight & Chervany.2002)

'Novak,1996; Kim & Stoel (2003); Weinberg (2000)

Continuous Improvement Oteltet (2008), Loiacono & Parlners (2007) ServiccwProduets Diversification Cai, Card & Cols (2004); Kim, Ma & Kim,

2006; Ghosh & Anthony (2003)

is proposed that website design affects customer satisfaction, Accordingly, | also included in

my study the hypothesis 111 as follows

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Ñeltabilify:

Reliability means honoring the commitments in areas such as billing accuracy, proper record maintenance and deivering the service within acceptable time limit (Saha and Zhao, 2005) It also refers to the correct technical functioning of a self-services technology and the accuracy of service delivery (Weijters et al.,2005, p.9), Many authors have detected that reliability is significant in the determination of service quality (Bapozzi,1990, David at alL,1993, Parasuraman et al,, 1988; Zeithaml & Bitner, 2000) Parasuraman et al (1988) also considered reliability of the service as an important factor of scrviec quality Finally, Dabholkar (1996) in his study revealed that reliability and accuracy are appropiate measure for assessing service that mast do with lecimotogy

Speedl of Responses:

‘The speed of access and response time of the website play an important role in the online supply of products and services of enterprises as well as the formation of customer satisfaction (Chen & Dibb, 2010) Many sludies lave demonstrated the same corretation between website access speed and customer satisfaction as tactors that halp establish and

maintain customer relationships (Hoffman & Novak, 1996) Kim & Stole (2003) believes

Confidential & Security:

Websites usually storc and manage a large amount of customer information through

transaction history bebwcen customers and husincsses Therefore, the safely anc sccurity of the website becomes one of the top concems of customers when conducting online transactions as well as contribute to create customer satisfaction Madu & Madu (2002) Said thal the provision of sorvices through the internct must be reliable to gain credibility and trust from customers, Similarly, Te & Tee @2007) found thal the security of ontins uansactions was extremely necessary because customers almost bought products and services online without any in-kind cxchanges such as cash or orcdit card According to Kim

their expectations, the customer will disclose their transaction data to a more willing service provider (Park & Kim, 2003; McNight 4 Chervany, 2002)

Continuous Improvement:

The popularity of the intemet and modem technology help the website to keep up-to- date with new features to meet the increasing demands of customers Ouellet (2008) reviewed the innovation of the website through the "update" feature Loiacono & Associates (2007) identified improvements as am important component of website qualily weasurement and defines this feature as "innovative and unique" The more frequently updated and updated websites will gain stronger competitive advantage than other competitars in the

s und producls will be constantly updated and introduced ta customers Ones

‘The quality of information regarding the accuracy and content of information about the products and services is provided on the website Customers visit the website of any service provider to find uscful information aboul prices, producl calogarics or now adverlising campaigns Therefors, providing accurate and up-to-date information is the primary goal of a website (Kim & Lee, 2004) According to Cai, Card & Cole (2004), detailed and varied sources of information arc onc of the main motivators for online fansactions because websites always personalize cuslorner transactions Betlsr servs them

(Kim, Ma & Kim, 2006) Surprisingly, Surjadjaja, Ghosh & Antony (2003) argne that

updated sources have a great influence on consumer purchasing decisions Peterson, Balasubramanian & Bonmcnberg (1997) show that superior information quality through online transactions promotes higher purchasing behavior and customer satisfaction, as well

as helping service providers maintain their relationships Good relationship with customers Bames & Vidgen (2002), Loiacono & Associates (2002) believe that quality of information Website plays a decisive role in the succuss of a wobsils - Important variables which have a positive impact on the formation of customer satisfaction,

2.4, Reality of internet banking services by Ba Dinh branch

24.1 The development of internet banking services of Ba Dinh Branch

Internst Banking: A method of dealing with VistinBank over the intemnat was started

in 2008, Only one computer with intemet access and access code provided by the bank and accessing the website: www.vietinbank vn and execute the transaction quickly

At present, VietinBank is providing 2 Imfsmet Banking packages fr individual customers and corporate customers, which are basic Internet Banking package and advanced Intemet Banking package With the basic Infect Banking package, you will only be able to look up demand and term account information as well as look up transaction history Advanced Intemet Banking offers more convenience, besides basic utilities, the advanced package offers additional utilities such as in and out of system transfers; open - pay -

Tesch

edule savings account; payment for electricily, waler, telephone, topup phone

Anthenteation method: When applying forms of transfer, opening / closing time accounts online on Internet Banking, bill payment, TOPUP ., customer authentication by

catering sceurily chain Fram Token or SMS is

nf to The main mobile phone number thal has registered SMS Banking service

3⁄43 Characteristics of internet banking services of Ba Dink Branch

- Costs of deploying Intemet Banking Service:

For Talernel Banking service: Vielinbanik should purchase modem high-performance computing Server system, high-speed intemet connection to be able to support tens of thousands concurrent customer accesses [hese kinds of systems are often provided by foreign vendors with very high price There are also the cost of hiring IT engineers for TT network management, the cost of outsourcing the Viettinbank website system maintenance

Vietinbank constantly improves the quality of its services to provide the best experionce to customers, one of which is intemol banking services with outstanding facitities In 2017, Victinbank was honored ta receive the “Outstanding c-Banking Award"

by IDG Vietnam and the Vietnam Banks Association,

Vietinbank provide a variety of services via Intemet banking channel aiming at accelerating the number of transactions por day, reducing transaction costs and time, thercby ensuring the efficiency of banking transactions Vietinbank believes that the support of the convenient tacks as well as up-to-date digital technology application will offer the best quality of service to its customers

2.4.3, Customer participation in internet banking

By December 2017, the number of individual customers and imstitutional customers

using Inlomnel Ranking servi

Vietnam Joint Stock Commercial Bank for Industry and Trade Ba Dinh Branch)

as follows: (According to the repart of 2016 and 2017 of

‘the table shows that the number of Intemet Banking customers is increasing In

2015, thore are $892 customers using the service bul by 2016 if has reached 6932 customers and to 8397 in the end of 2017 Next, we will study the structure of customers using Internet Banking,

Internet Banking Internet Banking | Internet Banking

Table 2 3 Customer structure uving internet Banking

- Other plans include: housewife, houschold business, business plan and other current plan

- Through the analysis can see the object of using banking services

- The electronics are mainly customners wha are working, for 3 yee

Table 2 4 Business revulis of Internet Banking services

Throughtable 2.3, the results of Internct Banking services show that Intomet Banking service revenue is increasing, along with the increase in number of transactions Show that more and more customers use the service The situation of Internet Banking service of the Bank is Tuy stable

Summary of Chapter 2:

Chapter 2 focuses on the satisfaction of individual customers using online banking services, thercby intoducing # Give-factor inadcl that can influcnee customer satistaetion These factors include: ease of uses, customer service, assurance, system availability, and advertising promotions Base on that Chapter 3 will present qualitative and quantitative rescarch mathods

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CHAPTER 3: RESEARCH METHODS

3.1 Research model and Hypothesis:

As discussed in Section 2.3, there are 6 factors that affect the satisfaction of customers using intemnet banking services as follows:

The basis objective of this thesis is to investigate "The Factors affecting the satisfaction of

customers to Internet Banking in VietinBank-Ba Dinh Branch" The research model for this

study is shown in Figure 3.1 The independent variables affect to customer satisfaction are

the six identified characteristics We hypothesize that all those attributes have a positive

impact on the satisfaction of customers

3.2 _ Development of research hypothesis:

Ease of use: (EOS) is defined as the perception of users about services that it is easy to use

and it doesn't require any mental effort (Rehman et al.,2013) In this thesis, it is mentioned

through friendly web design The most important thing is that customers feel easy to

navigate and do transactions online quickly

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Hi: The Kase of Use has a positive effect on the Customer Satisfaction

Reliability: (REL)honoring the commilmerts in arcas such as billing accuracy, proper

HS: The Speed of responseshas a pasitive effect on the customer satisfaction

Conttdential & Security: (CAS)Websites usually store and manage a large amount of

customer information through transaction history between customers and busincsses Therefore, the safety and security of the website becomes one of the top conceins of customers when conducting online transactions as well as contribute to create customer satisfaction, Madu & Mada (2002) Said thal the provision of services through the inlernsl must be reliable to gain credibility and trust ftom customers

H4: The Confidential & Security has a positive effect on the customer satisfaction Continuaus Improvement: (CIM)The popularity of the inicrnel and modern technology help the website to keep up-to-date with new features to meet the increasing demands of customers Ouellet (2008) reviewed the inovation of the website through the “update” feature Loiacono & Associates (2007) identified improvements as an important component

of website quality mcasurcment and defines this featurc as “innovative and unique"

HS: The Continuous Improvement has a positive effect on the customer satisfaction

Servicelproduct diversification: (SPD) The quality of information regarding the accuracy and content of information about the products and services is provided on the website Customers visit the website of any service provider lo find useful information aboul prices,

product categories or new advertising campaigns

H6: The Service/products diversification has a positive effect on the customer satisfaction

of service as well as the satisfaction of the customer to deliver the appropriate scale

The qualitative study was conducted by discussing with the eight experts of

VietinBank -Ba Dinh Branch to explore the concepts and features of the Intemet Banking

service to draw out the questionnaire Next, do quantitative research by examining about 30

clients using a convenient sampling technique to detect the errors of the questionnaire as

well as the scale From there, draw outa formal questionnaire for the research

The quantitative Study is to identify the scales for key concepts of research based on the

results of group discussions The questionnaire was formulated including scales (according

to the questionnaire attached)

Collect the sample and process the data Data collected were processed by SPSS 16.0 software to draw out the conclusion from the hypothesis Finally, the results from SPSS will

be analyzed, explained, presented on the research report

The Measurement Scale: 3 parts

Part 1: Demographic information: clients provide some private information like

gender, age, education, and monthly-income

Part 2: Some questions about clients'behavior of using Internet Banking Services

Part 3: Questions about how the clients feel about the quality of some services of Internet Banking and the how strong they feel about those products/ services This part includes 18 statements about 6 service quality characteristics and 3 statements for customer

The bank performs intemet banking Han & Baek (2004)

services correctly right at the first time

REL2 Information which is provided in internet

banking services is accurate

The information is always up to date in internet banking services

RELI

REL3

ros) _ | intemet banking services do not require | Parasuraman & ctg (2005)

me to put a lot of efforts

EOS2 I feel comfortable to use computer for

internet banking services

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~ intemet banking services

CAS3 T feel trust when using internet banking

services

The speed of login your accounts of

SOP! _| intemet banking services is fast

SOP2 The webpage of intemet banking services

CIM1 | banking services with new features

The bank has employees to record the | Loiacono & Associates (2007)

CIM2 | customers’ demands related to the

features of internet banking services

IM3 The errors of the website of internet

services are fixed quickl

The bank provides wide range of services

SPD1 | inits intemet banking services

SPD2 |The bank provides internet banking:

services with features I want SPD3 | All my services that I need are integrated

into menu options

My expectation before using internet

CSAL banking services is fulfilled after using

internet banking services

CSA2 I completely satisfy with current internet

banking services

CSA3 I feel pleasant to use internet banking

Cai, Card & Cole (2004)

Yang & Associates (2004)

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Sample size was determined based on standard foundation 5:1 of Bollen (1998) and

Hair & cig (1998), il means to cnsure good dila analysis (EFA factor analysis), at least 5

observations for a measurement variable and the number of observations should not be Jess than 100 The study modet included six independent factors with 18 observed vanables, So the muriber of samples necded is at least 18 x 6 = 108

250 survey questionnaires were directly delivered to customers coming to Vietinbank transaction offices Last of customers received surveyquestionnaires was chosen randomly

Data gathering mefhod:250 survey questionnaires delivered and 200 items collected after a week(80% feedback from customers)

Data analyzing method: Afler the appropriaie number of samples was collected, 1 used SPSS 16.0 to analyze the data with the coding scales

Frequency analysis is simple data analysis technique but it brings high valne in term

of providing background information about demographic characteristics of 200 respondouts who arc involved into the survey of questionnaire as well as their behavior of using Internet banking services of Vietinbank Ba Dinh Branch The researcher utilizes graph in Excel to interpret obtained results from frequency analysis

Descriptive statistics is fundamental data analysis technique and it outputs two important indicators, including mean value and standard deviation value of a variable It is denoted that mean valus provides the result of the respondents agree or disagrss with a statement while standard deviation valuc hints how the respondents provide the asscssment truly or not,

Explanatory factor analysis(EFA) is commonly utilized when the researchers want

to reduce the nuribor of variables in order lo avoid the conuplexity in data analysis In this study, EFA is conducted for customer satisfaction and its antecedents, EFA for the antecedents of customer satisfaction is conducted for the group of reliability factor, ease of use factor, confidentiality and sccurity factor, specd of responses factor, continuous improvement factor, and products/services diversification factor,

‘The first requirement of EFA is that the researchers have to calculate KMO value and it is tested by a Chi-Squarc test, named as Bartlett's Test, The obicetive of calculating KMO value and conducting Bartlett’s Test is to assure that EFA is good for using and EFA

is applicable when KMO value is higher than 0.5 and Bartleit’s Test is statistical significant

s than 0.05

at 5% of confidence interval On the other band, p-value of Bartlett’s Test

22

‘the second requirement of EKA refers ta the generation of new components ‘The

nnmiber of new component is decided upon on how many components that ars choson front the dataset, The criteria to select the components is the ones which have initial eigenvalues higher than 1.0 Moreover, it is required to check cumulative vanance explainsd values of the components which have initial cigonvatucs higher than 1.0 TLis denoted thal cumulative variance explained value of these components must be higher than 50%

‘The third requirement of EFA is through the value of factor loading of the items inside each componenl, Tt is required (rat each Hem must have factor loading value higher than 0,50, On the other hand, the items which have factor loading values less than 0.50 will

be removed fiom their belonged component

Reliability est analysisis applied in this study to explore what the reliabilily level in the survey’s scale of each factor In this context, there are 7 reliability tests which are applied for reliability factor, ease of use factor, confidentiality and security factor, speod of responses factor, continuous improvement faclor, products‘

GTV

diversification factor, anđ custorrsr satisfaction factor

Cronbach's alpha is a measure of intemal consistency, that is, how closely related a set of items are as a group It is considered to be a measure of scale reliability In addition to measuring intcrnal consistency, if you wish to provide evidence that the scale in question is unidimensional, additional analyses can be performed,Cronbach’s alpha is not a statistical test —it is a coefficient of reliability (or consistency)

Its denoted that reliability test comes up with 3 requirments The first requircment

is to check the overall reliability level of the survey's scale of one factor and acceptable reliability Tevel is recorded when Cronbach’s alpha of this factor is higher or equal to 0.6 The coond requirement, refers to thơ comolstion among variabtes which are belonged to this factor and it is requized that corralation value oŸ one item must be higher than or equal t0 0.3 ‘The last requirement is that when one item is deleted, Cronbach's alpha is recalculated

with the value i:

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- One-Way ANOVA is applied for the variable which has more than two dimensions in ils structure, One-Way ANOVA helps the researchers to detect which vatiable has significant influence on the assessment of the respondents towards each factor In this study, One-Way ANOVA is applied for other demographic variables and the variables thal reflecl the behavior of the custamers It is denoted that One-Way ANOVA is based on F-Test

Multiple linear regressionis the last data analysis and it is utilized to clarify the causal relationship between two types of variables One is dependent variable and other is independent variables In this study, dependent variable is customer satisfaction and independent variables include reliability factor, ease of use factor, confidentiality and security factor, speed of responses factor, continuous improvement factor, and products/scrvices diversification factor

reliability test, explanatory factor analysis (EFA), ANOVA analysis, and multiple linear

regression, Primary data for these data analyses is collected from the survey of questionnaire

with 200 respondents who are the customers of Vietinbank — Ba Dinh Branch

4.1 Description of the sample:

‘The main research sample was the customers who use intemet banking, through the website

of Vietinbank, especially the young customers Vietinbank — Ba Dinh Branch has 15

‘wansaction offices, including 5 transaction officcs of type 1 and 10 transaction offices of

type 2, type 1 is bigger than type 2

250 survey questionnaires were directly delivered to customers commng to Vietinbank

transaction offices List of custoruers received surveyrjuestionnaires was chosen randomiy And

200 items collected after a week (80% feedback fiom customers) which are 99 male and £01 female

24

How long the respondents use

Victinbank's Internet Banking

of providing background infomation about demographic charactetistics of 200 respondents

who are involved inlo the survey of questionnaire as well as their behavior of using Inlernct

banking services of Vietinbank — Ba Dinh Branch The researcher utilizes graph in Excel to

interpret obtained results from frequency analysis

There arc four demographic information which arc collected from the survey of

questionnaire, including gender, age, education, and monthly income The first information

is gender and it includes male and female people Obtained result is presented in Figure

A2.1 to A2.4in the Appendix 2

Figure A2.1 provides the result of which there are 101 female and 99 male respondents are participated into the survey of questionnaire The percentage of famale and male group arc 50.5% and 49.5% accordingly, The number of female respondents is not much higher than the mmmber of male respondents

Figure A2.2 provides the result of which the age of 200 respondents is segmented by different groups, Tt is coneluded that the respondents have age mostly between 20 years old and 40 years old because of there ara not so muy responder

is who have age less than 20 years old and more than 40 years old In more detail, there are only 6 respondants who have age less than 20 years old while there are 18 respondents who have age more than 40 years

old In the group of age more flan 40 years old, the numbers of respondents who have age

41-45 years old, 46-50 years old, and more thant 50 y

rs old ars 10, 6, 2 accordingly Other

while, there are 42 respondents who have age between 20 and 25 years old (21.0%), 48

respondents who have age between 26 and 30 years old (24.0%), 48 respondents who have age between 31 and 35 years old (24.0%), and 38 respondents who have age between 36 and 4D years old (19.0%) If is concnded that most of the respondents in this study are still young and they are the target customers of Intemet banking services of Vietinbank Ba Dirih Branch

Figure A2.3 provides the resull of which education background of 200 respondents is

explored accordingly ‘he main conclusion is that the respondents who are participated into

the survey of questionnaire have good education background because of 103 respondents are graduated while 10 respondents are post-gradualed, Morcover, there ara 87 respondents who obtain certain degrees from vocational schools in Vietnam

Figure A2.4 provides the result of which monthly income is divided into four groups, imchnding less than 1OVNDm, 10-15VNDm, 15-20VNDm, and more than 20VNDm There

ae only 4 respondents: who have monthly income more than 20VNDi and iL is true since more than 20VNDmn is quite high monthly income level in Vietnam Moreover, there are 59

respondents who have monthly income less than 10VNDm, 67 respondents who have

monthly income between 10 and ISVNDmm, and 70 respondents who have monthly income between 15 and 20VNDm

4.2 Validation of the Scale:

4.2.1 Explanatory factor analysis of customer satisfaction factor

The first requirement of EFA of customer satisfaction factor is presented in Table 4.2 below:

Table 4 2KMO value and Rartlett’s Test of customer satisfaction factor

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Test tetumms p-valuc less than 0.08 or Bartlett's Test is statislicul significant al 3% of

confidence interval It is concluded that EFA can be used far the dataset of customer satisfaction and 3 items of this factor is put into ferther analysis

The second requircinent of EFA of customer satisfaction factor is presented in Table 4.3 below:

‘Vable 4 3Total vartance explained by fhe cantponents of customer satisfaction factor

‘Table 4.3 shows that customer satisfaction is constructed from the first component The

reason is that the first component has initial gigonvaluc of 2.204 and iL is higher than 1.0

‘This component also has the percentage of variance is 73.450% and it is higher than 50% It

is concluded that the second requirement of LIA is fulfilled for customer satisfaction factor

‘The last reqnirerteni of FFA of customer satisfaction factor is presented in Table 4.4 below

Table 4, 4Component matrix of customer satisfaction factor

Table 44 indicates in details of the first component aller His sclocled i previous checking

of EFA process, Component | has 3 items and the first item is the secand item of customer satisfaction factor with factor loading value of 0.897 while the second and the third item refers to the first and the third item of customer satisfaction factor with factor loading valucs

of 0.846 and 0,826 respectively Ail factor loading values of these items are higher than

0.50 His concluded that the fast requirement of EFA is fulfilled for customer satisfaction

factor is fulfilled accordingly,

4.2.2, Explanatory factor analysis of the antecedents of customer satisfaction

‘The first requirement of 1'A of the antecedents of customer satisfaction factor is presented

in Table 4.5 below

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Table 4 SKMO velue and Bartlett's Test of the antecedents of customer satisfaction factor

Burllelt’s Tes! of Sphericily Approx Chi-Square 1208.228

Bartlett's Test is statistical significant at 5% of confidence interval It is concluded that LIA

ean be used for the datascl of the antecedents of customer satisfaction and all ilems of is pul

into further analysis

‘The second requirement of EFA of customer satisfaction factor is presented in Table 4.6

below

Table 4, 6Total variance explained by components of the antecedents af customer satisfaction

'Table 7 shows that there are 6 components to be extracted due to they have initiat cigenvalucs higher than 1.0 Cammulalive variance oxplaincd by Thess 6 components is 6.640% and it is higher than 50% In more detail, initial eigenvalues of Component 1, 2, 3,

4, 5, and 6 are 2.975, 2.325, 2.111, 2.016, 1.612, and 1.497 respectively and the percentages

of varianos atc 16.529%, 12.914%, 11.728%, 11.1999, 8.9559, and 8.3149 respectivcly

‘The last requirement of EFA of the antecedents of customer satisfaction factor is presented

¥ Component 1 is named as speed of responses wilh three ilems of this Gactor are presented, Factor loading values of SOP1, SOP2, and SOP3 are 0.861, 0.873, and 0.849 and they are higher than 0.50

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