Luận văn research on customer satisfaction on the quality of e banking services in vietnamese commercial banks

This study was conducted to measure and determine the factors affecting the quality of E-banking services based on SERVPERF model of Cronin and Taylor 1992 and the impact of E-banking

quality of E-Banking services in Vietnamese

Commercial Banks

Supervisor : Assoc Prof Dr Pham Thi Lien

Hanoi, May 2018

ACKNOWLEDGMENTS

Fustly, I would like to thank all of professors and teachers of Ha Noi national

university gave me the opportunity to study in an international standard quality program

Secondly, T would like to thark Prof Dr Pham Thi Lien is teacher led ine to complete this Thesis

Thirdly, I would like to thank my parents who have always beside me to encourage and support me throughout leaming process a3 well as this thesis

Finally, T world Tike to thank friends, collcagues have always supported me eomplote

a master's thesis

Signature

Pham The Tuyen

6, Research Quastious cccseesisneseseraentsneteins sess wll

1.1 Electrenic Banlúng services

1.1.2 The benefits and risks of E-banking, cceiceeerree "“—ˆ

L.1.3 Types of electronic banking services 0 ccc

1.13.4 Internet Banking

1.1.3.6 Kiosk DAHÀĂNg, cu tr Hee rraaaaaeaeeeeeoe ED

1.1.3.7 Blectronie ItHet àccceccheno nghe HahrreHererderemarreeirrieo l7)

1.1.4 The technical means for the use of E-banking services - 18

1.2.1 Deiinition of serviee quality - "— HH Hee 418 1.2.2 The concept of quality of li-banking services - - 9

1.2.3 Criteria for measuring the quality of E-banking services 20

1.3.2 The relationship between sevice quality and customer satisfaction 22

L4.1, SERVQUAL Model ecccsccssssssssssnssissssesssteussseisesesase Taeeeiiio 23)

CHAPTER 2 DATA AND METHODOLOGY

2.4 Rescarch Mcthods coi mì

2.4.2 Quantitative research methods con am

2.4.2.1, Preliminary quantitative research - - - 33

2.4.2.2, Formal QHAHINaHUè Pê§6Gf€Ï cà nhe Heeemaardesaeooeaer OF

3.1 Overview of E-banking services in Vietnam - 42

3.1.1 Card seTViccs TH HH 1011.0111111 0.1101 `

1.2 IrferneflBanking th, tr rrerriierire -Ö-43

3.2, Situafion of providing E-banking services at 5 commercial banks in Victnam

3.2.5 T-Ranking service of Vietinbank - - - 4g

3.3.1, Results of demographic analysis

3.3.2 Results of measuring the scales 52

3.3.3 Resulls of the Exploratory Paclor Analysis (RFA) 54 3.3.4, The results of Confirmatory Factor Analysis (CFA) 34 3.3.5 The results of the test by the Structural Equation Model (SEM) - 58 3.3.6 Tho results of test by the Roolstrap method - - 60

CHAPTER 4 CONCLUSIONS AND RECOMMENDATIONS

4.1 Conclusions

4.3.5 Strengthening the links with organizations and enterprises _ ˆ

ABSTRACT

Research on service quality and service quality satisfaction has attracted a great deal of

attention from scholars over the past two decades and has provided many valuable findings to

society This study was conducted to measure and determine the factors affecting the quality

of E-banking services based on SERVPERF model of Cronin and Taylor (1992) and the

impact of E-banking services to customers' satisfaction when using E-banking services at 5

commercial banks in Viemam: VCB, BIDV, ACB, Techcombank, Vietinbank Data were

collected by interviewing 337 individual customers who have been using E-banking services

at these five commercial banks for 1-3 years Methods such as descriptive statistics,

Cronbach's Alpha coefficients, Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), and the Structural Equation Model (SEM) were used in this study The

results show that the quality of E-banking services is influenced by the six factors in the order

of importance: Reliability, Responsiveness, Empathy, Assurance, Tangibles, Accessibility In

addition, the quality of E-banking services has also positively impacted the satisfaction of

customers in these five commercial banks

Keywords: Quality of service, E-banking services, customer satisfaction

TOM TAT

Nghiên cứu về chất lượng địch vụ và sự hài lòng về chất lượng địch vụ thu luát nhiễu sự quan tâm từ các học giả trong suốt hai thập kỷ qua và đã cung cấp nhiều phát hiện quý bản cho xã

hội Nghiên cu này được thực hiện nhằm đo lưòng và xác định các yễu tổ tác động đến chất

lượng dịch vụ ngân hàng điện từ dựa theo mô hình đo lường chất lượng dich vu SERVPERF

của Cronin va Taylor (1992) và sự tác động của chất lượng dịch vụ ngân hàng điện tir dén swe

hài lòng của khách hàng khi sử dụng dịch vụ ngân hàng điện tử tại 5 ngân hàng thương mại ở

Viet Nam: VCB, BIDV, ACB, Techeombank, Lietinbank- Số liệu được thu thập qua phỏng vẫn

337 khách hàng cá nhân đã và đang sử dụng dịch vụ ngân hàng điện tử tại Š NHTM này được

1-3 năm Các phương pháp thong kê mô tả, kiểm định bằng hệ sổ tin cây Cronbach 's -lipha,

phân tích nhân tổ khám phả (EF.A), phân tích nhân tổ khẳng định (CE4) và mô hình cẩu trúc

tuyển tính (SEM) được sử dụng trong nghiên cu này Kết quả cho thẩy chất lượng dịch vụ

ngân hàng điện tử chịu sự tác động cùng chiều của 6 yếu tổ theo thử tị quan trọng: Sự tia

cây, sự đáp ứng, sự đồng cảm, năng lực phục vụ, phương tiện liữu hình, sự tiếp cân Bên canh:

đó, chất lượng dịch vụ ngân hàng điện từ cũng tác động cùng chiều với sự hài lòng của khách hang tai 5 Ngan hang throng mai nay

Từ khóa: Chất lượng dịch vụ, địch vụ ngân hàng điện tử, sự hài lòng của khách hàng.

Empathy

Kaiser-Meyer-Olkin One-Time-Password Point of Sale‘Paint of Service Reliability

Responsiveness Assurance

Structural Equation Model Short

A summary of the research hypotheses The scales of "Reliability”

The scales of "Responsiveness”

The scales of "Assurance”

The scales of "Empathy”

The seales of "Tungible”

The scales of "Accessibility”

The scales of "Customer satisfaction”

Organizations providing E-wallet services in Vietnam as of 31/12/2017 Sample size and survey results

Statistics of demographic characteristics of the surveyed subjects Summary of measurement results

Results of the Exploratory Factor Analysis (EFA) Courclation of obscrved variables with whole scale Reliability assessment

Unnormalized coefficients of the SEM model Normalized coefficients of the SEM model Estimated results with sample size 500 Summary the results of the research hypothesis testing

LEST OF CHARTS

‘Number of cards issued in the period 2012 2017

Number of ATMs and POS machines in the period 2012 — 2017

Number of banks deploying Internetbanking service

LIST OF DIAGRAMS Model of Technical Quality/Functiomal Quality Research Model of the Thesis

The research process of the Thesis Qualitative research process

Results of CFA analysis, The results of the SEM model test

INTRODUCTION

1 Rationale for the Research

Before ths explosion of the 4.0 teclmology revoluion, all economic seciors have to rise to compete and integrate into the segional and world economy In particular, in the banking sector, commiting to open the banking and financial services in 2010 is a great challenge for

/stem of Vietnamese commercial banks which have recently shifted from centralized bureaucracy to a market mechanism in a short time, when faced with multinational corporations with huge financial potential, modem technology and hundreds of years of experience

Vietnam is one of the countri

with the highest number of internet users in the world

at 14th The number of Internet users is high, the growth rate is song which have created favorable conditions for the development of E-Commerce in general and [-Banking in

particular At present, the level of competition in E-Banking scrviccs in Victnam is rapidly

increasing: in 2005, Vietnam had only four commercial banks providing E-Banking services;

Jn 2016, Vietnam had 45 commercial banks providing this service in vations forms with high technology lo benefit both banks and customers E-Banking liclps reduce costs by reducing the numiber of employees, branches, transaction offices and other facilities while maintaining high customer service levels ‘This could facilitate commercial banks in providing services to custemners at lower cost and gaining higher telus tan traditional banking services Therefore, in order to exploit the advantages of E-Baniking services, most commercial bariks

im Vietnam have invested heavily in electrome infrastructure and provide customers through

many moder distribution charmels However, up to now, commercial banks in Vietnam have not met the needs and expectations of increasing customers and are facing many difficulties in business Therefore, in order to succeed in a highly competitive industry such as H-Banking, commercial barks must provide high qualily service to their customers To dơ thal,

commercial banks have to understand the criteria that customers use to evaluate the quality of

&-Banking services Based on that, the banks have effechve solutions to improve the quality

of E-Banking services, creale custorncr salisfaction From thal reason, I chose the problem

“Research on Customer salisfaction on the quulity of E-Banking services in Vietnamese

Commercial Banks” for my master thesis

2 Overview of research situation

So far, there have been many domestic and foreign researches on customer satisfaction on the quality of F-hanking services, Snch as

Minjoon Tan and Shaohan Cai (2001) focus on factors affecting the quality of E-banking services in the United States Accordingly, the authors present, 17 inluential factors in three groups: (1) Thecustomer service quality team consists of 10 factors: reliability, responsivensss, bank capacity, courtesy attitude, banking credibility, access speed, communication, customer understimding, cooperation and continuous improvement: (2) The online quality system team consists of 5 factors: accuracy, ease of use, time, aesthetics and safety; (3) The banking quality group consists of two factors: the diversity

of banking services, the fealures of banking products amd services The results show thal there is no significant difference between banks using E-banking services and traditional banks when providing online banking services The factors that have the greatest impact

on the quality of Tr-banking are reliability, responsiveness, access speed and accuracy On that basis, the authors also made some suggestions and recommendations to improve the quality of E-banking services and improve customer satisfaction on the quality of E- banking services for banks in USA

Richard Selassie Bebli (2015) has empirically studied the factors affecting the quality of

e-banking scrvices thal lead to cusiorner satisfaelion in commercial banks in Ghana Rescarch

enjoyment, control, In combination with the usc of qualitative and quantitative methods, the results show that all 6 factors have a positive and significant correlation ai 1%, with the exception of 2 factors are "Enjoyment" and "Control", the other 4 factors are significant al 5%, Bussokom Janwachiratharakul and Dieter Fink (2005) have studicd the needs of consumers when using E-banking services in Thailand to find out the cause of customer dissatisfaction, then provides optimal strategies for Thai banks to maximize the utilization rate of E-banking services 1'he authors conducted empirical research on a sample size of 600 customers by submitting questiomaires to 15 people from 40 major Bangkok companies, The study found that there are 5 factors that affect customer satisfaction regarding the quality of E-banking services in ‘Thailand inelude: the features of the Web, the benefits of using the service, security, time and control In addition, regulatory variables such as gendcr, cdncation level, income, internet experience, and F-banking experience have had a significant impact Noel Yee-Man Siu and Jeremy Chi-Wah Mou

(2005) also used the SERVQUAL model developed by Zeithaml et al (2000,2002) to analyze

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the factors that affect customer satisfaction on the quality of E-banking services in Hong Kong as well as their falure inlentio

handling and s fely" factors have a significant impact on customer satisfaction, nol only the

"safety" and “effectiveness” factors significantly related to consumer behavior in the future Kan Pikkarainen, ‘Tero Pikkarainen, Lleikki Karjaluoto and Seppo Pahnila (2006) used the FUCS model to examine the satisfaction of ebanking uscrs in Finland A survey was conducted on a sample scale of 268 individual customers conducted using convenient sampling at over 40 commercial banks in Finland The results show that there are three factors: ease of use, accuracy, and safety that affect customer satisfaction in the quatity of E-banking services in Finland, The results show that the EUCS model can be used to assess customer satisfaction in the quality of E-banking services, replacing traditional

Le The Gioi and Le Van Huy (2012) study the relationship between service quality and

caslomer satisfaction and loyally in the use of banking services The study looked al the talationship belween factors and then adjusted those factors to fir the tarkol data Based on the Exploratory Factor Analysis (EFA), Structural Equation Model (SEM), the authors have obtained some results: develop a scale for the quality of banking services based on the

SERVQUAI

the factors that affect customer satisthetion on the quality of banking services including: visibility, reliability of service detivery, trust in customer promise, sympathy and

1 and sore additional scales suilable for the conditions in Vietnam, Identify

responsiveness, branch network and ATM Based on the results of the study, the authors also

provided some policy suggestions in the formulation of business strategies for commercial banks in Vietnam-Iran Duc ‘Thang (2015) has focused on developing a model of the relationship belween the quality of T-banking services and the satisfaction and foyzlly of customers under the influence of intermediaries as transforming costs, the trust of customers

in E-banking services in Vietnam By using the Structural Equation Model (SEM), the results

show a very high corrclation bofweor the ovaralf quality of B-banking services and customer satisfaction and between satisfaction customers with loyalty of customers, Thus, it can be said

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that in Vietnam, if the overall quality of E-banking services is high enough to meet the needs

of customers, the cuslomer will be satisfied and will be loyal to the bank; thal is, Tl will continue to use the servioes of the bank in the future and may be good word of mouth for the bank ‘hese findings will serve as a basis for Vietnamese commercial banks to develop their

competitive stralogiss in the ficld of E-barikinys

In summary, the review of research shows that: there were a lot of researches on

“Quality of E-banking services"Thosc studics focuscd on building models such as

SERVQUAL, SERVPERF, EBAM, KUCS, TRA, TPB, TAM, TAM2, IDI, UTAUT to

evaluate the quality of F-banking services, factors affecting the qualily of F-banking services: customer satisfaction on E-banking service quality or the relationship between quality of E- banking services and satisfaction and loyalty of customers Within the scope of the topic, the aulhor will focus an the impact of factors on tha quality of E-bunking servi

and the quality

of E-banking services to the satisfaction of customers at commercial banks in Vietnam

3, Research Objetlives

‘The objective of the thesis is to research the customer satisfaction about the quality of T-banking services at commercial banks in Vismam, On that hasis, it will propose feasible

solutions to further improve customer satisfaction on the quality of E-banking services for

commercial banks it Vietnam in the coming time

In order to achieve that objective, the topic is directed towards specific objectives:

> Systematizing basic theoretical issues on [i-banking quality of L’-banking services and

customer satisfaction,

> Analyving and assessing the current slalus of the qualily of T-banking services provided

at Vietnamese commercial banks;

> Developing a system of scales and models for measuring the quality of E-banking services at Vietnamese commercial banks;

> Examining the impact of factors on the quality of E-banking services and the quality of

E-banking services to the satisfaction of customers at Viemamess commercial banks:

> Suggesting some solutions to further improve customer satisfaction about the quality of

E-bariking scrvices for Victnamesc cormmervial banks during the integration period

4 Reswarch Subjects

The thesis will focus on the satisfaction of customers when using E-banking scrviecs

im Viemam commercial banks.

5 Research Scopes

> About space: Currently the commercial banking system in Vistnam includes: 4 State- Owned commercial banks, 31 Joint Stock commercial banks, 6 banks with 100% forcign capital, 2 Joint venture banks, Within the framework of this thesis, the author only limits the study of 5 major commercial banks: Viemam Joint Stock Commercial Bank of Industry and Trade (Vietinbank), Joint Stock Commercial Bank for Forcign Trade of Vietnam (VCB), Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Asia Commercial Joint Slock Bank (ACB), Viera Technological and Commercial Joint Stack Bank (Techeornbanik)

» About objects: Individual customers (including internal customers and external customers

of the bank) have becn using E-banking services at the above 5 commercial banks for 1-3

8 Structure of the thesis

This thesis includes four main chapters:

Chapter 1: Literature Review

Chapter 2: Data and Methedology

Chapter 3: Rescach Results

Chapter 4: Findings and Recommendations

CHAPTER 1 LITERATURE REVIEW

1.1 Electronic Banking services

LLL The concept of E-banking

So far, there are many different understandings about E-banking: E-banking is a

service where banks provide their customers with access to their accounts for business

transactions and information gathering via electronic communications channels such as cash

machines (ATM), home banking and intemet banking (Pikkarainen et al, 2004) E-banking is

all transactions that can take place via an electronic system such as the web, the internet;

Helps all customers make transactions, access their accounts or to get information over the

intemet (Azam Khurshid, 2014)

The State Bank of Vietnam defines: “E-banking services are modern and multi- functional banking services that are distributed to wholesale and retail customers quickly (online, 24 hours a day, 7 days a week) through distribution channels (Intemet and other terminal equipment such as computers, ATM, POS, fixed telephones, mobile phones .)"

According to Truong Due Bao (2003, p.13) “E-banking is the ability for a customer to

remotely access a bank to collect information, perform payment transactions and finance based on custody accounts at that bank” With this understanding, E-banking service is a

computer software system that allows customers to leam or use banking services by

connecting their computer networks with banks According to Tran Duc Thang (2015, p.22)

“E-banking services are banking services provided through electronic means and telecommunication networks Inside, electronic means are the means of operation based on electrical, electronic, digital, wireless transmission, electronic or equivalent technology

Telecommunication network includes intemet, telephone network, wireless network, intranet,

extranet ”

Thus, the above definitions define e-banking services through delivery services or

through electronic distribution channels This definition may be true from time to time but it

is not possible to outline both the history of development and the future development of E-

banking From the above concepts, the author can generalize as follows: “E-banking services

include all types of transactions between banks and customers (individuals and organizations) based on digital data processing and transfer to provide banking products and

services.”

1.1.2 The benefits and risks of E-banking

1.1.2.1 The benefits of E-banking (Tran Duc Thang, 2015)

+ For the Bank: It is characterized that transactions are entirely cartied out through

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electronic equipment and telecommmication networks; E-banking has brought many practical

benefits to banks:

- The cost of dealing with E-Banking services is often much lower than traditional

services, thus saving the bank's costs and thus increasing the bank's revenue and profit

- E-banking increases competitiveness and broadens the scope of operations for banks E-

Banking also helps commercial banks to implement the strategy of "Globalization" without

having to open any other branches in the country and abroad

- E-Banking also helps banks to increase efficiency of capital mobilization and use: when

customers use E-Banking service, they must open a payment account and maintain a certain amount of money at the bank, so the bank also mobilizes some of its capital

- The convenience of E-Banking services from application technology, from the software

used and from the network service provider and intemet service has attracted and kept many

customers dealing with banks and become traditional customers of the banks

- E-banking can provide a package service to customers: banks can link with insurance

companies, securities companies and other finance companies to provide integrated services

aimed at meet the needs of every customer in the market

+ For customers: E-banking services not only bring about practical benefits to banks but also to customers:

- Saving time and money: Using E-banking services with electronic means allows customers to carry out transactions with banks anytime, anywhere without having to go to the

bank, thus saving time and fuel costs, travel expenses for customers In addition, transaction

costs of E-Banking services are often much lower than traditional ones, thus saving on service costs for customers

- Reducing transaction procedures at banks: If the traditional banking services,

customers have to complete the required information on the printed form of the bank and have

to move from one transaction counter to another; the E-Banking service, customers only need

to sit in one place and carry out specific instructions on the applications provided by the bank

that can carry out all transactions such as: electricity bill, card, pay tuition, transfer money

- Customers will receive many incentives: when using E-Banking service, customers

will receive many incentives from banks, from service providers such as payment by bank card will be discounted, online phone recharge will receive high discount plus value card charge

+ For economy: Every year, the State Bank does not have to spend money on printing,

distributing and preserving, transporting cash, reducing the amount of money in circulation

and thus controlling inflation E-Banking has created a new way of doing business,

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contributing to boosting economic, trade and tourist activities, creating conditions for expanding trade and economic cooperation with the region and the world

11.2.2, The risks of E-banking Tran Due Thang, 2015)

In addition to the benefits that B-banking offers to both banks and customers, E-banking

- Ris

of reputation: Temutationat risk can arise when customers encounter abstactes to new banking services but are not provided with sufficient information about the usc and procedures for solving problems, Or because of the difficulties of the telecommunications syste that customers can nol access their customer information or source of rooney, especially when there are no altemative means, Even, reputational risk may also arise from deliberate attacks on the bank that are “hackers” that illegally infiltrate the Website of the bank, altering the falsification of the information on banking services

LL3 Types of electronic banking services

4.1.3.1 Mobile Banking

ILis an online serviez through the wobite phone network in parallel with the form of

Intemet service was born in the 90s, With the development of science and technology, smarter

phones have more memory capacity Users can install the applications provided by the bank,

so that the application on the phone acts as a clicnt application an the computer if connected

to the Intemet, or Telecom Developers are pre-installed on the SIM Toolkit that allows customers to make transactions with any bank connected to the network without having to conncel (o the Tstemet The advantage of this form is the mobility of the phone thal th customer always carry with him The downside is that the information provided to the

customer is simple and undergoes several small steps to complete any transaction ‘Therefore,

this form was orcatsd to address the need to pay the Micro paymens or aulonmated servic

without a seiver, To participate in this service, customers must register to become a full

member in which the customer must provide bis basic information such as mobile phone number, personal account number After that, the customer will be provided with an identification code (ID) and will be converted into a bar code for posting to the mobile phone, which will help to provide customer information when paying quickly and accurately With

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the identification number, customers are also given a personal identification number (PIN) to confirm the payment transaction when the payment service provider requesis Afler completing the necessary procedures, the customer will be a full member and eligible to pay via mobile phone Mobile Banking services such as: View information about interest rates,

exchange rates; View balance of payment deposil account, card account, Receive a ri

" when the balance of payment account or card account changes; View the latest transaction Listings (up to 5 listed); Y'ransfer money through card accounts; Check the receipt of identity card or passport, PaymenL of cleoricity till, water bill, Internet charge, mobile phone til,

cable TV fee

113.2 Phone Banking

The banking service is provided through a system of server and management software located at the bank, linked to customers through the service switchboard This service gives customers a new convenience that customers can use their phones anytime, anywhere to listen

to their banking infonmation and personal account information This is an automated

answering system that works 24 hours a day Customers simply press the keys on their phone keypads in accordance with the bank code required to request the system to respond to the

required information at any time including outside office hours However, onc limitation is

‘that the information updated via this service is only available at the end of the previous day

‘The process of using Phone Banking is as follows: (1) Registration to use the service: the customer must provide the necessary information and sign the contract using this service

Then the customer will be provided with two identifiers which are customer code and system

access key; In addition, customers are provided with an account code to facilitate the

account; Check information on interest ralss, exchange rales, securities, Lislen lo [he latest

deals (up to 5 transactions), Ask banks to fix transaction listings, savings interest rates, stock

quotes, exchange rates

1.1.3.3 Mame Banking

HomeBanking is built an one of the two platforms: the Sofware Rasc and the Web Base through the server, the Internet and personal computers With this service, the customer

15

deals with the bank via the network but is the intemal network built by the bank itself (ntranel) This service allows customers lo perform most bank transfer Iransactions al home

or at the office without access to the bank by accessing the bank's network This is a highly secure product thanks to the operation of the local communications network between the

pank through the VPN s

1.1.3.4 Internet Banking

A type of E-banking on the browser, also known as online banking ‘This is a broad distribution channel for banking producls and sarviees to customers anywhere and at any time To use this service, customers only need to sign up for a service with a bank and one of the devices such as a tablet, laptop or desktop computer with an Internet connection is availablc for use The advantage of this service is thal it doas nol, require customers to have complex settings and does not have to install client applications so customers do not have to spend maintenance fees, The user interface is very eye-catching, clear layout, large size on the

‘Web browser platform The downside is the inconvenience of scrolling due to the size of the computer

With a computer connected to the Internet, through the access code and password is provided, customers can acc

s the website of the bank to be provided with information and fully instructions on the use of all products, the bank: View your account balance at the current time; view transaction history, View information about exchange rates, interest rates

and

urities: Transfer within and oulside the banking s: , Sond all inquirias, comments

on products and services of the bank and be resolved quickly, Payment of bills such as electricity, water, cable television, telephone charges, intemet charges

41.3.3 Call Center

Call Center is the banking service through the central telephone, customers with accounts at any branch can still call a phone number of this center for all information Unlike the PhoneTianking service that provides only pre-programmed information, this service can flexibly provide information or answer customer inquiries Therefore the Limitation of this service is always to have people 24/24 Services provided by the Call Center include: Introduction to the telephone card products of Ihe bark, Consult card use, register card for telephone; Apply for voice loans (tor individual customers); Providing information on payment deposit accounts, savings accounts and card accounts, Payment of bills such as cleatricily, water, cable television, clophone charges, Intomel charges; Remitlance within and outside the banking system; Receive [cfephone complaints and inquiries frorn customers when using products and services

113.6 Kiosk Banking

Kiosk Banking is an clcctronic banking scrvice thal uscs touch sercen, customers just touch the screen lightly to be able to perform transactions such as: deposit savings; transfers within and outside the banking system: pay taxes or pay bills of electricity, water, cable iclevision On the strects there will be stations or centers that are connceted to the Internet at high speeds, When customers want to transact, they only need to enter the personal identification number and password to confirm that they can use the product banking services Wilh this servioe, banks wilt reduce the number of ATMs and reduec the amount of cash in cizculation, Customers will be served with the highest quality and most convenient but now this service is less bank provided

1.137 Electronic Wallet

E-wailet is a service that provides customers with an electronic account created on a carrier {such as electronic chip, mobile phone sim, electronic data .), allowing customers to sore a monetary value is guaranteed by the amomt of cash eqnivalent to the amount tvansferred from the customer's payment deposit account or other forms into the deposit account of banks for the execution of transactions, H-wallet service providers are responsible

17

for managing E-wallet accounts of customers and processing transactions arising on the system when the activities of loading, withdrawing money, Irading goods, services of customers; calculate the obligation and notify the bank to debit and credit the relevant real money accounts of the parties involved

LL4, The technical means for the use of E-banking services

Mobilephones: Currently, most of the large mobile phones with GPRS or network connections are able to install software and use Li-banking

Electronic payment equipment (POS, KDC): Hlectronic devices with electronic readers

connected to the bank’s network can Iransmil and Irack information frorn credit cards,

smart cards of shoppers at point-of-sale curent payment transactions Through credit cards that customers can purchase, pay for non-cash services, the bank replaces the paying customer for the point-of-sale and the bank receives a certain fee from the fimds themnsclves

Computers: Through a networked compnter, customers can access Ihe Webs

= of any bank to use the E-banking services provided by the bank

Website and Intemet: The Internet is » wide arca network, which brings together thousands of computer networks around the world connected to each other Web is a

hypertext made on the internet Via the intemet, customers can access the information

posted on the Bank's Web sitc and cant cunduct E-banking transactions provided through the Bank's website

ATM Card: An I8O card that includes debit and credit cards Debit card used to perform wansactions such as checking accounts, withdrawing money, transferring money, paying bills For debit cards, customers using the amount of money already on the card can withdraw money al a nogalive tevel or withdraw overdrafl Credit card used to pay al the point of sale or to withdraw cash at ATMs, Credit cards are based on the credit line, depending on the type of card and the type of customer that the bank will provide to the customer a certain amount of credit Customers can withdraw the amount issued by the bank within a certain period and be forced to pay when maturity If the credit limit is not paid in time, the bank will charge interest rates as high as prescribed These two types of

cards ate accepted as a non-cash payment at card acceptance points

1.2 Quality of E-banking services

12L Definition of service quality

Quality of service is assessed depending on the culture, the field of business should

have many different definitions Through reference to the literature, the aulhor recognizes some of the notion of service quality used by the author:

Grénroos (1984, p.37) "Quality of service is the difference between the quality of service that

cuslomers expect wilh the qualily of sorviee thal customcrs actully fel” This concept has been reaffirmed in Paraswraman et al (1985, p 42) as follows: “Quality of service can be defined as the comparison of customers between the quality of service they expect and the quality

of service the

ceive Quality of scrviee is determined by the difference belweon the customer's expectations for the service and the actual perception of the service and can be expressed by the formula: Quality of Service = Perception - Expectation’, According to Woodside et al (1989):

“Quality of service is understood by the answer to the qnestion: Is customer service what they expect or different fiom what thoy expect? The services that customers rcccive arc almost what they expect or better or worse than what they expect", In the opinion of Philp Kotler et

al, (2005) "Quality of service is defined as Ihe ability of a service lo include overall durabitily, reliability, accuracy, ease of use and ease of repair and other valuable attributes to perform its functions Ln addition, due to the different cultural environment, consumers in different

quality of service in different types of service"

Thus, although there are many different views bul the same can be understood “Quality

of service ix the response to the needs and expectations of customers, in other words the

quality of service is the difference between the customer's expectation and the perceived

service provided”

1.2.2, The concept of quality of E-banking services

The concept of quality of E-banking services is no stranger to people becanse it is a

matter of concern to managers in today's technology So far, there arc many different views

on the quality of E-banking services, and different studies have come up with different

coneepts of #-banking service quality Such as

According to Jun and Cai (2001, p.8) "The qualily of B-banking services is assessed on all thuee aspects, quality of customer service, quality of banking services and quality of online system" Yang et al (2004, p11) "he quality of L-banking services is assessed on three asp

online information" According to Richard (2015) "Quality of E-banking services is assessed

by customer satisfaction when they use E-banking services”, In line with Richard (2015), some authors argue that the quality of Ti-banking services is the satisfaction of customers

2012) and (Le Thi Bich

ts: rpuality of online customer service, quality of banking services and quality of system

about how banks provide E-banking serviccs (Doan Thu Thu

Nguyết 2015) At a higher level, Tran Duc Thang (2015,p.25) said "The quality of E-

banking servic

s nol only reflected in customer satisfaction but also in customer loyalty” From the analysis of the concept of "E-banking" and the definition of "quality of service" we can understand “fhe quality of H-banking services is the perception of

customers that the gap between the expectations of E-banking services will he provided

with their perception when using E-banking services”

1.2.3 Criteria for measuring the quality of E'-banking services

The measurement of E-banking service quality depends on many factors that affect the perception of the user and the nature of the service ‘There were many authors whe studied this issuc: Parasuraman cl al (1982, 1985, 1988), Cronin and Taylor (1992, 1994), Gronoos (1984, 1990); Dabholkar et al (2000) The authors have developed analytical frameworks

for assessing service quality with a variety of components and applications in different areas, but the most common are the five of service quality assessment criteria by Parasuraman ct al (1988) included “Reliability, Responsiveness, Tangibles, Assurance, Empathy”:

(1) Reliabiti

+ Reliability demonstrates the ability (o deliver consistent and timely

service sighl from the first time This indicalor is important for services in the field of rail,

‘bus, banking, fizight For E-banking services, this indicator is measured by the following scales: (i) The level of safety and security of E-banking, (ii) ‘I'he stability and accuracy of the transaction Indeed, E-banking is a service based on modem technology Customers de nol have to go to the bank to make transactions, so the safety and security are always put on top

by customers From the customer's point of view, the security and confidentiality here

includes such factors as the confidentiality of information for customers, authentication of

customer information, to avoid risks such as loss of money, disclosure of customer information when bad guys take advantage

(2) Responsiveness: Responsiveness is expressed through the availability of service

personnel when providing timely service to customers In order to measure the responsiveness

of K-banking, we can use rating sales for the degree of willingness to introduce, guide cuslamners to use, guide customers to make complainis; answering customer inquiries, the ability to provide services at all times that custamers need

(3) Tanglbles: Tangiblss are epresented by a system of facilities, equipment, personnel,

materials and media for service delivery ‘hese factors are used at different levels for services

to take place, sometimes the underlying faclor is hidden, so the uscr is less visible For F-

‘banking services, customers only have to go to the counter to register or deposit into their

payment account for use at every transaction, so the criteria for tangible means are perceived

20

by customers through: service mannal; registration form for using the service; the form of deposit into the accouml; devices that support access to T- bariking

(4) Assurance: Assurance is demonstrated by the expertise, ability to meet the current and future needs of customers as well as the courteous manner of employees to customers In

expertise of bank staff, transaction processing, transaction processing desctiptions, the speed

at which transactions are handled, how complaints handling is handled

(5) Empathy: Empalhy is expressed through allention, care lo cach customer For F-

banking services, this criterion is reflected in the bank's empathy for customer needs based on the transaction value, frequency of use of services and utilities that customers regularly use, from which the orientation for customers in using the service Empathy is felt by the customers through the sealc of case of usc, the ability to meet the diverse needs of the type of banking services that customers need

1.3, Customer satisfaction

13.1 The concept of customer satisfaction

Customer satisfaction is seen as the foundation of the concept of marketing, There are many studies of customer satisfaction and the fact that there are many different

expectation" (Parasuraman cL al 1988)

Tse and Wilton (1988) argue that “Customer satisfaction is the response of customers

to the difference between desire and perception after using produets ot services” According

to Oliver and Bearden (1995,p.48) "Customer satisfaction is a business task cxpresscd by th relationship between the value of the product or service and the expectations of the customer”

Zeithaml and Biter (2000) argue that “Customer satisfaction is the customer's perception of a

According 10 Kotler & Kotler

product or service thal meels their needs and expectation

(2006,p.62) "Customer satisfaction is the level of sensation derived trom comparing the perception ofa product to the expectations of that person Accordingly, satisfaction is divided inlp three levels

- If customer perception is smaller than expected, customers feel dissatisfied

- If expectations are met, customers feel satisfied

+ If the perception is bigger than expected the customer will feet satisfied”

In Vietnam, ths satisfaction of customers has been studied by a umber of authors in different fields such asin the field of mobile Ielsơommnuri

Duc Sau (2007); banking sector by Duong Thi Ngoc Phuong (2013), Tran Due Thang (2015) In any field, the authors have a general view of customer satisfaction is the

ion by That Thanh Ta and Tor

cmotionat slate of the customer when comparing the resulis recived from the service compared to their expectations Today, in the context of fierce competition, customer satisfaction can be viewed as a significant success for the organization because oustamer

satisfaction can lead Lo cusLomer retention (Jarval and Kamal, 2062)

Th summary, Grom the point of view, the author gives the concept as follows

“Customer Satisfachon is the emotional state in which the needs and desires of the customer for the value / benefit of the service are tower, equal or higher than expected leading to customer

toyalty io the bank's se

13.2, The relationship between service quality and customer satisfaction

Thơ relationship botweon scrvieo quality and customer satisfaction has boon the subject of much debate among researchers over the last decade There have bean many studies

of customer satisfaction in different service sectors and generally concluded that quality of service and custorner satisfaction arc two distinet concepts bul they have # close mutuxt relationship Indeed, in the service sector, the concepts of "quality of service" and "customer satisfaction" are fimdamentally different based on the analysis of causal relationships between them According to Zeithalm and Biter (2000), customer satisfaction is infnenced by many factors such as; quality of scrviee, price, personal fictors, environment As such, customer satisfaction is a broader concept than quality service, With this view we can see the quality of service as & faclor in the impacl on customer satisfaction, There have been many practical studiss on the relationship between quality of service and customer satisfaction Cronin and

‘raylor (1992), Spreng and Mackoy (1996); Jamal and Naser (2002) examined this

relationship and concluded that service quatity loads Lo customer satisfaction, which is the premise of satisfaction and also the factors that affect customer satistaction Therefore, to improve customer satisfaction, service providers must improve service quality In other words, quality of service and customer satisfaction are closely interrelated in that quality of service is

‘what is orvated first and dctzrmines customer satisfaction Thercfore, we can usc customer

satisfaction to measure service quality

1.4, Models of service quality measurement

141, SERVQUAL model

The Servgual model is one of the tools for measuring service quality, It has been so popular ever since not only in marketing but also in other fields such as: health care, banking, rolailing, hotel serviecs, conmarvial sorviees In 1985, Parasuraman and fis colleagues sol out 10 criteria for measming service quality:

Table 1.1 Measuroment critcrias of SERVQUAL Model— 1985

Measure to create easy conditions for customers to access

Accessibility services such as: shorten the waiting time of customers, places

of service and convenient opening hours for customers Measure the expertise of the staff when performing services, Competence the ability to research to capture the relevant information

necessary for customer service

Measure cormumication, communieale il lo customers in a Communication language they understand easily and Listen to customer-related

issues such as: explaining the service cost, resolving complaints, or answer questions

Measuec the style of hospitality, courtesy and customer Courtesy Gicndliness of the staff

Reliability Measure the ability to perform the right service on time, right

from the first time

Responsiveness Measure the availability of service staff when providing service

to customers Credibility Measure the ability fo create frust for customers, make

customers trust in the bank

Security Measure the ability to ensure the safety of customers, expressed

through the safely of matcrial, financial as well as mfornalion

security

Tangibles Measure the system infrastructure, equipment for service, stalf

service, Underslading/knowing | Measure the ability lo understand the needs of customers by

Ihe customer understanding the Tequirements of customers, taking care of

them personally and identify the customer regularly

Source: Parasurama et al (1983)

A model of 10 service quality measures has the advantage of covering almost every aspect of the service, Llowever, this model has the disadvantage of being complex in mmeasurcinent and this model is theorstically possible, even though many components of the service quality model fail to achieve distinctive values, Therefore, these researchers have

23

repeatedly tested the model and in 1988 Parasuraman and his colleagues summarized the 10 components into 5 criterias for measuring service quality:

Table 1.2 Measurement criterias of the SERVQUAL Model — 1988

Measurement criterias Description

Measure the ability to perform the nght contract, accurate and

Reliability prestigious service right from the first time

Empathy Measure the care of each individual customer

Tangibles Measure the system infrastructure, equipment for service, staff

service

Source: Parasuraman et al (1988)

The SERVQUAL scale consists of two parts, each with 22 statements The first part is

to determine customer expectations for the type of business/banking services in general The

second part is to determine the customer's perception of service performance of the surveyed

business/bank The results of this research are to find out the distance between customer perception of service quality and customer's expectation about quality of service Thus, according to SERVQUAL model, service quality is defined as follows:

Quality of service = Perceived level (P) - Expected value (E)

If the distance (P - E) is greater than 0 means that the customer is very interested in the

service; If 0 means customer is satisfied and less than 0 means the customer is disappointed or unhappy about the quality of service provided

Table 1.3 Scales of the SERVQUAL Model — 1988

1 When Bank X promises to do something at some time, they

will do

2 When you have a problem, Bank X has shown genuine interest

Reliability in solving the problem

3, Bank X performs the service right from the first time

4, Bank X provides the service exactly as promised

5, Bank Xis advised not to make any mistakes

1 The staffs of Bank X tell you when to do the service

2 The staffs of Bank X quickly perform the service for you

24

Responsiveness [ 3 The staf§ of Bank X arzalways available to help you

A The slaffs of Bunk X are never too busy to respond to your

requests,

1 Behavior of the staffs at Bank X creates confidence for you

Assurance 2 You feel sufe while dealing with Bank X

3 The staffs of Bank X are always open to you

4 The staffs of Bank X have sufficient knowledge to answer your questions

Bank X always pay special attention to you

Lmpathy Bank X has employees who eare about you

Bank X for your benefit is their mindset The staits of Bank X understand your needs

Bank X has a very modern equipment system

Facilities of Banik X leok very eye-catching, The staffs of Bank X dressed very politely

- Bank X's advertising page is very beautiful,

1.4.3 Model of Technical Quality ‘Functional Quality

In addition to the SERVQUAL and SERVPERF models, Model of Technical Quality/ Function Quality of the Gronroos (1984) is also considered as a measute of service quality Although this model has net been oxtensively tested as the SERVQUAL and SERVPERF models, it has also been used by some authors to measure service quality in architectural design by Baker and Lamb (1993); the accounting of Higgins and Ferguson (1991), Pizza

ar ol al (2000) In this model, the quality of service is assessed by comparing the value expected by the customer before

aslivery Service of Allaway (1993); banking services of

25

using the service and the value that the customer receives when using the service To measure

service quality, Gronroos has come up with three criterias: technical quality and functional quality and image Inside:

(1) Technical quality: describe what the service is provided and the quality that

customers receive from services such as computer systems, technical solutions to technology

(2) Functional quality: describes how the service is provided or how the customer

Teceives quality results

(3) Image: built mainly on the technical quality and functional quality of service

on services service quality received

CHAPTER 2 DATA AND METHODOLOGV 2.1, Research Model

There are many models of service quality measurement, among which there is a

similarity in service quality as a general concept comprising a number of factors, each of

which reflects an attribute of quality of service, the researchers found that the SERVPERF

model by Cronin and Taylor (1992) is the most suitable model to use in measuring service

quality in many different areas, especially in the banking sector Moreover, from the point of

view of researchers around the world as well as the use of this model in measuring service

quality, it has been shown that evaluating the quality of service in a given field is based on perceptions, views and reviews of customers Thus, from the theoretical basis and the viewpoint of researchers around the world, author will use 5 measurement criterias of the SERVPERF model to measure the quality of E-banking services at Vietnamese commercial banks However, in addition to issues related to human factors, facilities the bank also

needs to create conditions for customers easy access to E-banking services because this

service requires modern technology, unlike traditional banking services Thus, from the five factors of the original model, the author adds an element is "Accessibility" to measure banking issues that facilitate access to banking services The research model of the thesis consists of 6 factors that affect the quality of E-banking services as 6 independent variables

In addition, in order to test the impact of the quality of E-banking services on customer

satisfaction in Vietnamese commercial banks, the author proposes to add one more factor

"Customer Satisfaction" makes the second dependent variable of the model The research model and hypotheses of the thesis will be as follows:

Diagram 2.1 Research Model of the Thesis

Source: Additional editing from SERVPERF Model of Cronin and Taylor's (1992)

Explain the variables:

(1) Reliability: measures the ability to perform E-banking services exactly as it is committed

to customers, accuracy and credibility from the first time

(2) Responsiveness: measures the enthusiasm of the bank staff when it comes to helping

customers and meeting the needs of their customers, providing fast and efficient E-banking

services

(3) Assurance: measure the level of expertise, style of service, warmly with customers and the

ability to communicate of the bank staff

(4) Empathy: measures the care to each individual customer

(5) Tangibles: measures of the infrastructure system, equipment of the bank for E-banking

services, and staff of the bank

(6) Accessibility: measures to create easy conditions for customers to access E-banking

services such as: shortening the waiting time of customers, places of service and convenient opening hours for customers

From the above model, the author presents the research hypotheses following:

Table 2.1 A summary of the research hypotheses

Để Services at commercial banks in Vietnam

Hồ |The "Responsiveness" factor has a positive impact on the quality of E-banking]

ervices in commercial banks in Vietnam

i The "Empathy" factor has a positive impact on the quality of E-banking|

services at commercial banks in Vietnam

yg [Phe “Assurance” factor has a positive impact on the quality of E-banking

services at commercial banks in Vietnam

= ins “Accessibility” factor has a positive impact on the quality of E-banking)

ervices at commercial banks in Vietnam

[The "Tangibles" factor has a positive impact on the quality of E-banking} services at commercial banks in Vietnam

"Quality of E-banking services" has a positive impact on the "Satisfaction of]

customers" at commercial banks in Vietnam

Step 1: Confirming research objectives: The main research objective of the model is to

the impact of the factors on the quality of F-banking services and the quality of E-

banking services to the satisfaction of customers at 5 commercial banks in Vietnam

Siep 2: Building theoretical frameworks for qualily af B-banking services have been

don SERVPERF model of Cronia and Taylor (1992) which includes 6 factors

igned bas

“Reliability”, “Responsiveness”, "Accessibility*, "Assurance", "Empathy “and “Tangibles" to identify independent variables and the first dependent variable of the model is "Quality of Li- banking services" Al the same time, the (hcorcticat framework far the relationship between quality of E-banking services and customer satistaction determines the second dependant

variable of the model is "Customer satisfaction"

Step 3: Building and calibrating the scales: The third step is to conduct consultation and discussion with two target groups: (1) Experts include professors, associate professors, doctors, researchers, bankers; (2) Individual customers have been using E-banking for 1-3 years at branches and the Headquarter of 3 commercial banks This discussion will assist the author in designing the questionnaires and adjusting them accordingly to arrive at a consistent undorslanding of the questions im tha scale At the cnd off tho qualitative research phase at slop three, the questionnaire used for the preliminary quantitative siady was finalized,

Step 4: Prelizainary quantitative study to evaluate the scale with small sample: The author plans to snrvey 50 customers wha have been using E-hamking for 1-3 years ai branches and hoadquarlor of 5 commercial banks in Hanoi with Cronbach's Alpha and Faploratory Factor Analysis (EFA) to screen for obscured, overlapping or unreliable content,

Step 5: Finalization of the scale before conducting the formal survey, Because the study uses Structural Lquation Model (SEM) to test the model the sample size is large enough( n >300) Step 6: Verification of the scale and hypotheses of the study by assertive Confirmatory

Paclor Analysis (CFA) to ovaluatc appropriaten , discriminative valuc, convergence value, The research model will be validated using the SEM toot to assess data suitability with the model and to evaluate the reliability of the model using the Bootstrap

29

Objectives Step The theary of quality of 1!- Step 2 Qualitative

of the study > ‘banking services in the * research builds

Proliminary steps Đua the quantitative rst scale

study

Step 4

(Exclude variables with | | (Exclude variables step 5 questionnaire

minor Correlation teat heave ce simadt = | >}

coefficient) ERA, check deviation

~ Check the suitability of the - Cxelnde variables that

- Test research hypatheses — [*“——] ~ check for unidirectinnal, bã Geese the

discriminant value

- Calculate the deviation

step7 ~ Calculate the coefficient

REPORL QN

RESULTS

Diagram 2.2 The research precess of the Thesis

(Source: Author's Proposal)

2.3 Data sources

23.4 Primary data

Primary data was collscled from surveys throngh questiommaires for brmches and headquarter of 5 commercial banks: VCB, Techcombank, ACB, Vistinbank, BIDV The research objective of the thesis is to evaluate the satisfaction of customers about E-banking sorvices, so thal the surveyed subjouts are individual customers (including inlarnal customers

and external customers of barks) have bocn using E-banking services al 5 corumercial banks The questionnaire was based on research concepts, combined with qualitative research, through consultation with experts, including professors, doctors, researchers, and bankers and

in-depth interviews with 10 individual customcrs who have been using E-banking scrvices at

30

3 commereial banks To collect primary đata, the author đeliver the questionnaires in ñve forms: direct at the bank's counter, al the bank's grateful custoiner conference, al home and the client's work office or use the form of Email

2.3.2, Secondary data

Secondary dala is collected from amual reparls of the State Bank, from Vieinam T- commerce reports or fiom the annual reports of $ commercial banks: BIDV, Vietinbank,

‘Techcombank, VCB, ACB In addition, the auther also collects ftom previous researches

†alcd lo E-barking servi in and outside the country such as: scignlific

s publis researches, monographs, articles banking, internet

2.4, Research Methods

2.4.1 Quilitative research methods

Qualilative rosoarch is the process of theoriving Grom individuat dala to model and seale, The author has reviewed the literature fiom inside and outside the country combined with the use of expert methods to build a draft scale; After that, the author conducted in-depth inlorviews with individual customers who havc becn using E-bmking services in 5 commercial banks in Vietnam (¥CB, Vietinbank, Techoombank, ACB, BIDV) to build customer satisfaction evaluation model of L-banking service quality, At the same time, the formal scale system should be developed to suit the real context of the Vietnamese banks and

serve the purpose of designing questionnaires for use in quantitative rescarch

Official scale

Diagram 2.3 Qualitative research process

Source: Sum of the Author

2411 Expert Method

‘The expert method is used by the authors to further clarify the contents of the research, especially the opinions of the experts who assist the author in desigrang questionnaires and proposing solutions, Based an the thcorclical reviews and previous studies, the suthor has drafted some contents that require expert consultation (Personal opinion en the quality of E- banking services in Vietnam? Is the SERVPERF model of Cronin and Taylor (1992) suitable

for measuing the quality of E-banking scrviec and asscssing customer satisfaction in

31

Vietnam? Are the criteria and scale of the SERVPERF model adequate and are there any

criteria or scales required to match the current status of E-banking services in Vietnam?), Then, the author discusses directly based on the original sketches with 10 experts including:

professors, doctors, researchers and bankers Of these, 6 are lecturers or experts with doctoral

or higher degree who are teaching and researching in the banking sector at some major

universities such as National Economics University, Banking Academy, bank staff training

school of Vietinbank and Vietcombank; 4 are managers who hold positions from Branch

director to Head of Business division at Headquarter of 5 commercial banks (List of experts:

Appendix 01) Interviews were conducted at the interviewee's offices Each interview lasts 10-20 minutes All experts are very interested in supporting the research and are willing to

provide the recommended information as well as share personal views All the interviews

were carefully recorded and stored in the computer Then, the combined results will be compared with the original theoretical model to draw a qualitative conclusion on the determinants of the quality of E-banking services identified by the SERVPERF model All

experts agree with the author in inheriting the SERVPERF model of Cronin and Taylor

(1992) as a basis for determining the quality of E-banking services for 5 commercial banks (VCB, Vietinbank, Techcombank, ACB, BIDV) in the context of the current banking sector

in Vietnam In addition to these five factors are "Reliability", "Responsiveness", "Assurance",

"Empathy" and "Tangible" of the SERVPERF model; the authors add the factor of

"Accessibility" to the model of the author because the experts and customers interviewed all

said that besides issues related to human factors, facilities and equipment, the bank should be

easy for customers to access E-banking services as they require high-tech The results of the expert method used by the authors serve as the basis for the development of a draft scale for in-depth interviews

2.4.1.2 In-depth interview Method

The objective of the in-depth interview method was to adjust the draft scale from the

results of the expert method to complete the official scale used in the quantitative study The

author intends to conduct in-depth interviews with 10 individual customers who have been

using E-banking for 1-3 years at branches and Headquarter of 5 commercial banks (VCB,

BIDV, Vietinbank, Techcombank, ACB), At the same time, 5 experts were interviewed to participate in the above phase to adjust the content of the draft scale accordingly (Contents of in-depth interviews: Appendix 02),

The results of interviews showed that all interviewees basically agreed on the content

of the questions in the draft scales, including 32 scales for 6 factors affecting the quality of E-

banking service and 4 scales measure the quality of E-banking services, 3 scales measure of

32

customer satisfaction on the quality of E-banking services The results of the qualitative

research conducted through expert method and in-depth interview method are the questionnaire (Appendix 03)

2.4.2, Quantitative research methods

Quantitative research methods are used to quantify the relationship between variables

in the research model and to test hypotheses obtained from the theory through the use of

statistical analysis tools Quantitative research is divided into two phases: preliminary

research and formal research

2.4.2.1 Preliminary quantitative research

After adjusting and refining the draft scales on the basis of qualitative research, scales continue to be used for the preliminary quantitative research in the form of survey the opinions of customers through questionnaires Preliminary quantitative research consists of

the following steps:

Step1: Designing the questionnaire: To complete the research tasks, the design of the questionnaire should ensure the logic and reasonableness of the questions For this study, the

content of the questionnaire consists of two parts:

- Part 1: General information about customers: This section contains questions to collect personal information of customers including: age, sex, education level, income level, occupation and this is the regulatory variable of the research model This section serves

to describe the groups of customers who have been using E-banking services at 5 commercial banks in Vietnam These are sensitive information so that the questions are

included in the closed question form to increase the respondent's responsiveness,

- Part 2: Assessment of the quality of E-banking services: Based on the baseline scale of

the SERVPERF model, the content of the questions will focus on surveying the

perception of customers after using E-banking services in 5 commercial banks To measure these variables, the author uses the Likert scale of 5 levels from 1- Very disagree

to 5- Strongly agree, of which 3-No comments The measurement of the 6 factors that

affect the quality of E-banking services and the satisfaction of customers on the quality of E-banking services are as follows

(A) “Reliability” consists of 5 scales encoded from TC1 to TCS, based on the survey of experts and customers through the adjustment of the 5 original scales of the SERVPERF model The results of qualitative research show that most experts and customers interviewed shared the view that "Reliability" is one of the first factors affecting the quality of E-banking

33

services; because when making transactions, most customers want to ensure the safety, accuracy does not occur any errors Therefore, in order to measure this factor, the authors adjusted the original scales of the SERVPERF model in order of priority from 1-5 on the basis

of the frequency of the interviewees selected the most

Table 2.2 The scales of "Reliability"

TC! |The bank does not make mistakes in E-banking services from the first

transaction

TC2 | Customers feel confident in the prestige of the bank

+c | The bank provides E-banking services to customers quickly, accurately and

without disclosing customer information

(2) “Responsiveness” consists of 6 scales encoded from DU] to DU6 based on the

survey of experts and customers through the adjustment of the 4 original scales of the SERVPERF model Qualitative research shows that most of the interviewed experts and customers share the view that if customer needs are met quickly and promptly, customers will not have to wait long, and the bank is always willing to help solve any difficulties for customers will create customer satisfaction Thus, in order to measure this factor, the author adjusted the 4 original scales of the SERVPERF model and developed 2 additional scales in order of priority from 1-6 on the basis of the frequency of the interviewees selected the most

Table 2.3 The scales of "Responsiveness"

DUI | The staff of the Bank is always ready to help, support customers

quick

DUG _ | The transaction speed of the automated system is very fast

Source: Additional editing from SERVPERF Model of Cronin and Taylor's (1992)

(3) "Assurance" consists of 5 scales encoded from PV1 to PVS based on the survey of

experts and customers through the adjustment of the 4 original scales of the SERVPERF

model The results of qualitative research show that most experts and bank managers said

that: (i) On the staff's side, Assurance is expressed through the following criteria: the bank's

staff must have professional knowledge of E-banking services to be able to confidently provide the information and can answer any questions of customers, At the same time,

communication skills and effective working skills are required; In addition, it is necessary to

have a courteous attitude, respect customers during the service to create a sense of comfort and satisfaction for customers (ii) On the bank's side, Assurance is reflected in the fact that

the bank always sees the customer as the king, always raising the sense of responsibility in the

service of customers, making the customers feel secure and trust the bank Similarly, according to the opinions of the interviewed clients, the staffs' assurance is reflected in their attentive, enthusiastic and professional manner Thus, in order to measure this factor, the author adjusted the 4 original scales of the SERVPERF model and developed | additional scale in order of priority from 1-5 on the basis of the frequency of the interviewees selected the most

Table 2.4 The scales of "Assurance"

PV1 | The staff of the Bank are knowledgeable enough to answer customer queries

PVS ‘The staff of the Bank work quickly

Source: Additional editing from SERVPERF Model of Cronin and Taylor's (1992)

(4) “Empathy” consists of 5 scales encoded from DCI to DCS based on the survey of

experts and customers through the adjustment of the S original scales of the SERVPERF

model From the qualitative research results; the experts, the bank managers and customers all say that in service, the staff must always put themselves in the customer's position to

understand their needs: consulting and providing appropriate services to ensure the benefits

to customers Even, when the customer encounters difficulties in registering and using E-

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banking services, the bank's staff must show sympathy, concern for customers and try to solve

the difficult problems for a customer quickly Therefore, in order to measure this factor, the author adjusted the 5 original scales of the SERVPERF model in order of priority from 1-5 on

the basis of the frequency of interviewees selected choice

Table 2.5 The scales of "Empathy"

DCL The staff of the Bank always understand the needs of customers

DC2 The staff of the Bank advise E-banking services in accordance with the needs of

customers

DC3 | The staff of the Bank always pay special attention to individual customers

DC4 | The staff of the Bank always see the interests of customers is their mind

DCS | The bank has a thoughtful customer care program

‘Source: Additional editing from SERVPERF Model of Cronin and Taylor's (1992)

(5) “Tangible” consists of 7 scales encoded from PTHH1 to PTHH7 based on the survey

of experts and customers through the adjustment of the 4 original scales of the SERVPERF

model Qualitative research shows that experts, bank managers and customers all say that:

‘The quality of E-banking services is also determined by the factors of facilities, equipment,

the appearance of the bank staff through costumes and looks If the bank has a place of

transaction and spacious facilities displayed at the head office of the bank or transaction office; Modem equipments, such as computer system for transaction processing, ATM, fixed telephone, television, air conditioner will make customers feel comfortable Even the forms

of transaction documents are beautiful and eye-catching, the appearance of young staff, dynamic, professional working style more and more customer satisfaction Thus, in order to

measure this factor, the author adjusted the 4 onginal scales of the SERVPERF model and

developed 3 additional scales in order of priority from 1-7 on the basis of the frequency of the

interviewees selected the most

Table 2.6 The scales of "Tangible”

PTHHI | The facilities of the bank are spacious

PTHH4 | The working style of the Bank staff is professional

PTHHS | The costumes and appearance of the Bank staff are neat, polite and attractive

PTHH7 | Website, documents, forms of the Bank are beautiful, attractive

Source: Additional editing from SERVPERF Model of Cronin and Taylor's (1992)

(6) “Accessibility” consists of 4 scales encoded from TCN1 to TCN4, based on the

opinion of experts, bank managers and customers Qualitative research shows that experts,

bank managers and customers say that: The bank facilitates easy access to E-banking services

such as convenient transaction location and parking, flexible transaction time, guidance

information, and procedures and flexible payment methods play an important role in

satisfying customer satisfaction when using E-banking services For example, customers can not come to a bank with a location that is too far away from their home or workplace or convenient for parking Even today, most E-banking transactions are carried out via mobile phones If banks do not have detailed information through the browser, it is very difficult for customers to force customers must go to the bank's office for transaction From the above

points of view, the author proposes 4 scales in order of from priority 1-4 as follows:

Table 2.7 The scales of " Accessibility”

TCN1 | The location and time of bank transactions are convenient for customers

Source: Author's Proposal

(7) “Customer satisfaction”: Customer Satisfaction is a term used to measure the

level of satisfaction of customers’ expectations about the types of E-banking services provided

by the bank In the opinion of experts and bank managers, customers are satisfied when all

their needs, including emotional needs and rational needs, are met with all expectations For

emotional needs expressed that when customers come to the transaction, customers expect that the staff of the bank welcomes customers in a friendly way, expressing respect for

customers, treat customers as gods The surrounding environment must show the luxury,

comfortable feeling for customers with equipment system is full and modern Especially, the

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staff of the bank operations should be fast, not to make any mistakes If the customer transactions over the telephone must ensure that the processing line of the bank is not congested and no technical errors On the rational needs, when customers dealing with banks,

customers want the bank to have many types of E-banking services so that customers have

many choices, but the cost of services must be reasonable, there are many programs

promotion is better Therefore, if these needs are met or satisfied then the customer will feel satisfied and will stick with the bank for a long time The author proposes three factors of

customer satisfaction on the quality of E-banking services in order of priority from 1-3 and

encoded from HL1 to HL3

Table 2.8, The scales of "Customer satisfaction”

HL1 | Customers are satisfied with what happens in E-banking transactions with banks

HL2 | Customers are satisfied with the bank they deal

HL3 | Customers will continue to use the bank's E-banking service

Source: Author's Proposal

Step 2: Select the sample for the survey: Primary data collection is carried out using a convenient sampling method but must be highly reliable and carried out according to the following criteria:

“+ About the object of survey: are individual customers (including internal customers and

external customers of the bank) who have been using E-banking for 1-3 years at branches and

Headquarter of 5 commercial banks: VCB, Techcombank, Vietinbank, BIDV, ACB

“> About the scope of the survey: focus on the Head Office in Hanoi and some major branches in the Northem provinces and cities such as Hanoi, Hai Phong, Hai Duong, Thai

Nguyen, Vinh Phuc and Hoa Binh

About the form of sending questionnaire: The author proceeds in five ways as follows:

+ Distributed directly at transaction counters of banks when customers come to the

procedure of registering for using E-banking services or customers deposit money into their accounts

+ Distributed directly at the meeting of loyal customers by the bank held on the occasion

of year-end closing on 5/12/2017.