Develop a service quality model for retail banking in VietNam Case study of techcombank

HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES SOLVAY BRUSSELS SCHOOL OF ECONOMICS & MANAGEMENT MBQPM4 “HUYNH QUANG ANH” “DEVELOP A SERVICE QUALITY MODEL FOR RETAIL B

HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES

SOLVAY BRUSSELS SCHOOL OF ECONOMICS & MANAGEMENT

MBQPM4

“HUYNH QUANG ANH”

“DEVELOP A SERVICE QUALITY MODEL

FOR RETAIL BANKING IN VIETNAM: CASE

STUDY OF TECHCOMBANK”

MASTER FINAL PROJECT

MASTER IN BUSINESS QUALITY AND PERFORMANCE MANAGEMENT

Tutor’s name: Dr Jacques Martin

Ho Chi Minh City (2014)

Statement of authentication

I certify that I wrote this thesis myself

I certify that the study has not been submitted for any other degrees

I certify that any help received and all sources used have been acknowledged in this thesis with the best of my knowledge

This study does not necessarily reflect the views of the Ho Chi Minh City Open University or Vietnam – Belgium Master Programs

Acknowledgement

I would like to express my sincere appreciation to my thesis advisor, Dr Jacques Martin, for his enlightening guidance and inspiring instruction in the development and completion of this study. Thanks also go to the administrator of the class, Ms Hien, for her support in searching articles on ULB’s library and solving other issues during master course

I also want to thank my boss and my colleagues, my boss for their support in carrying out my works during my absence for prepairing the thesis Thank you my cousins, Tuyet and Thien, for their support in inputing data into SPSS and helping me to prepare some paragraphs of this thesis

A special gratitude and love goes to my family for their unfailing support I thank my parents and my sister for their abiding love I thank my lovely daughter, Tao Heo, for playing with me when I am stressful caused by my work and my learning Finally, I want to express my deepest love and thanks to my loving wife, Le Na, for her support, understanding as best friend forever, taking care of our daughter, and sharing the housework during 2 years of my study and the most difficult time of thesis writing especially her idea on conducting survey on Techcombank staffs instead of external customer really helps me a lot to complete my thesis successfully

Table of Contents

Statement of authentication 3

Acknowledgement 4

List of pictures and tables in report 7

Introduction 8

Research questions of the study 10

The scope & research method of this study 11

The Struture of this study 11

Chapter 1 Literature review 12

Why need a service quality model for retail banking in Vietnam? 12

Still debate but want to use because it is a good diagnostics tool 12

Develop a Service quality model based on SERVQUAL 13

Chapter 2 Research Methodology 16

Design questionnaire 17

Data collection 23

Data analysis 23

The Sample characteristics and banking behavior 23

Develop a service quality model based on Customers’ expectation about institutions offering banking services 25

Measuring Service quality Using New Service quality model and Relative Importance of service dimensions expected by Customer 32

Measure Service quality using New Service quality model & Equation of Service quality rating and Customer Perception of Techcombank Service quality 35

Chapter 3 Discussion 38

Is this possible to use this new Service quality model for Techcombank? 38

Is there two equations of measuring service quality can be used for Techcombank? 39 Conclusion 41

Limitations of the study and avenues for further research 41

References 42

Appendix 1 Relationship’s customer with other banks 44

Appendix 2 Customer expected on Service quality of Techcombank 45

Appendix 3 Customer survey 46

List of pictures and tables in report

Figure 1 Modified SERVQUAL Model

Figure 2 Research Process

Figure 3 Total Variance Explained

Figure 4 Rotated Component Matrix for the first attempt

Figure 5 Rotated Component Matrix for the second attempt

Table 1 Questionnaire for evaluating Service quality at the banks

Table2 Vietnamese translated versions of Service quality models

Table 3 Gender and Working Experience in Techcombank

Table 4 Statistics of using Products with Techcombank

Table 5 Relationship working and customer experience with Techcombank Table 6 Cronbach’s alpha calculation

Table 7. KMO and Bartlett's Test 

Table 8 Total Variance Explained

Table 9 Rotated Component Matrix

Table 10 Score of Each factor based on customers’ evaluation

Table 11 Mean of each criteria perceive by Techcombank customers

Table 12 Measuring service quality by Equation 1

Table 13 Regression Model summary

Table 14 Regression Cofficients

Introduction

Vietnam Technological and Commercial Joint stock Bank - Techcombank was established on September 27th, 1993 with the initial registered capital of VND 20 billion with the aim to become an efficient financial intermediary bridging the savers with the investors in need of capital for business and economic development in the open-door era

Techcombank is ranked as one of the best banking Vietnam, it continue to be widely recognized as the Best Bank overall as well as a leading bank in a number of specific areas by some of the world’s most highly-regarded financial magazines such as the Asian Banker, Global Trader review and Asian Banking and Finance and Alpha South East Asia Techcombank has more than 3 million customers to use personal financial service such as personal accounts, savings and loans It also has more than 300 branches across the country in order to best serve our customers, with a dense network

of ATMs which are online 24/7 in order to help customer with cashiers Branch network is constantly upgraded spacious, clean for better serving customers

However, apart from the fact that our customers have not only used our products and services but also use the products and services of other banks, which are among top of banks in Vietnam such as Vietcombank, ACB, Sacombank, Agribank and a number of foreign banks such as HSBC, ANZ In this study, we interviewed 145 customers of Techcombank (see Appendix 1) who are our employees with working experience from

3 to 5 years and the results are much interesting that 45% of them use the bank's products and services of Vietcombank – one of the largest bank in Vietnam; 34% of them use the ACB and Sacombank products – two largest commercial bank; 26% of the products used Vietinbank – one of four state –owned banks; 25% of them use the products of HSBC – the most well-known foreign bank in Vietnam and Agribank – the

largest bank in Vietnam Even our bankers, who love Techcombank most, tend to use products and services of other banks not prove loyal In other words, Vietnamese customers are not loyal to retail banks, according to the latest research of Ernst & Young (Thanh Thanh Lan, 2014), as 65–77 per cent of surveyed people were ready to close their banking accounts and change to another bank

Regarding to the less loyalty of Vietnamese customers table, the reason is there are many banks in Viet Nam while Australia and Japan, for example, which have simple of banking system, have 3-4 large banks, thus customers with leaving little choice In addition, Vietnamese banks provide simple product and retail banks compete mainly with each other deposit whilst banks in other countries have on a range of products from pension, credit, savings or insurance to mortgage, thus their Customers do not change banks, as they will have to change all of the services

Another factor was the quality of service of Vietnamese banks This research also revealed that one-half of Vietnamese customers closed their accounts or left their banks due to issues of communication and experience in banking services No official research was done by Techcombank on how many customers have left Techcombank because of bad service quality But we have understood that services are strategic development of global corporation and Techcombank is in the race for better service quality and larger operations

As a matter of fact, maintaining high service quality can make a profit, reduce costs and expand market share Convenient and effective distribution systems and transaction processes, like clear-cut borrowing applications and quick processing, are a sign of good service, financial strength, broad networks and technological prowess Besides, service quality also depends on the environment and the surroundings, like the design and layout of customer service desks

Among elements that make up excellent service quality, staff is the most important While ATMs provide standard services at the same quality for customers, bank staff can supply more complex services or customer-tailored services Arguably, enhancing service quality and using service quality as a useful competitive instrument for form the groundwork, develop sustainably and take firm steps are urgent requirements in the process of regional and international integration

In recent years, we - quality management and improvement team of Techcombank have developed a service quality model to control and improve service quality of the bank The model includes 3 factors physical facilities, process and people We thought that we will provide excellent service quality to customers if we would manage well people, process and physical facilities by setting several quality standards such as visibility and cleanliness of sign board, condition of building Interiors and exteriors, staff attendance system in order, satisfactory dress code of staff (following Techcombank regulations) or displays customer friendly body language and postures, application and workflow updated & approved by SLA which was committed with customers The fact that the model is working smoothly, however, we don’t know what

we need to focus on improving people or physical evidence factors The other question

is also important is that whether service quality which we try to provide to customer will meet the customer expectations? What customers perceive service quality is what

we actually deliver to them

Research questions of the study

The objective of the study is to try to answer 3 questions as follows:

- The first question regarding how to apply the SERVQUAL model in order to build the service quality model for retail banking in Vietnam

- The second question regarding how to develop an equation in order to measure service quality for retail banking of a bank, particularly in this study for retail banking in Techcombank;

- The third question regarding what is relationship between perceptions of customer on service quality and service quality dimessions

The scope & research method of this study

This study concentrates to develop the service quality model for retail banking in case

of Techcombank The questionnaire is to try to understand the expectation and perception of customers who are working for Techcombank on the service quality of the retail banking

Chapter 1 Literature review

Why need a service quality model for retail banking in Vietnam?

We need to develop a model of service quality for retail banking in Vietnam because almost articles assumed that the service quality model already existed, they used directly Western models like SERVQUAL or SERVPERF for searching the relationship between service quality and customer satisfactions in Vietnam bank below For example Lien and Minh used SERVPERF model as proposed by Cronin & Taylor to assess perceived service quality at a Vietnamese commercial bank, and then study the relationship between service quality and customer satisfaction on banking service quality through regression analysis In addition, in other articles authors such as Dinh & Pickler also examined Service quality and Customer satisfaction in retail banking sector in Vietnam but they did not explain the reason why they use the SERVPERF instead of SERQUAL model for their examination

Still debate but want to use because it is a good diagnostics tool

Underpinning our understanding of service quality is an array of factors or determinants A number of researchers have provided lists of quality determinants and researchers further agree that Service quality is best represented as an aggregate of the discrete elements from the service encounter such as reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding, and tangible elements of the service offer (Cronin and Taylor, 1992; Parasuraman et al., 1985)

However, SERVQUAL (Parasuraman et al., 1991) with five dimensions of service quality, namely, tangibles, reliability, responsiveness, assurance and empathy directly measures both expectations – and performance perceptions whereas SERVPERF only measures performance perceptions SERVPERF identified by Cronin and Taylor (1992) uses only performance data because it assumes that respondents provide their

ratings by automatically comparing performance perceptions with performance expectations Thus, SERVPERF assumes that directly measuring performance expectations is unnecessary

As Parasuraman et al (1994) pointed out, the use of performance-only (SERVPERF) versus the expectation/performance difference scale (SERVQUAL) should be governed by whether the scale is used for a diagnostic purpose or for establishing theoretically sound models In the number of researches show that the SERVQUAL scale has greater interest for practitioners because of its richer diagnostic value By comparing customer expectations of service versus perceived service across dimensions, managers can identify service shortfalls and use this information to allocate resources to improve SQ (Parasuraman et al., 1994) For instance, Karin Newman (2001) presented a case analysis of a pioneering service quality improvement program in the UK by one of the top ten retail banks which used SERVQUAL as the main driver of organizational quality improvement initiatives SERVQUAL not only provided the means to introduce an element of devolution and self-autonomy to bank branches but also had the merit of being equally well understood by staff and managers and among staff in particular it escaped the cynical, “flavor-of-the-month” reaction to past quality and customer service initiatives and paved the way for the acceptance of a more intrusive check on branches such as the “mystery shopper” However, he also raised number of issues internally like absence of top management commitment that need to be overcome in order to implement SERVQUAL successfully

Develop a Service quality model based on SERVQUAL

In the original model built by Parasuraman et al (1991) concluded that consumers evaluated service quality by comparing expectations with perceptions on 5 dimensions: (1) Tangibles (measured by four items): the appearance of physical facilities, equipment, and personnel;

(2) Reliability (five items): the ability to perform the promised service dependably and accurately;

(3) Responsiveness (four items): the willingness to help customers and provide prompt service;

(4) Assurance (four items): the knowledge and courtesy of employees and their ability

to inspire trust and confidence; and

(5) Empathy (five items): the level of caring and individualized attention the firm provides to its customers

These five dimensions are thus assessed by a total of 22 items Each item is measured

on the basis of responses to two statements that measure:

(1) The general expectations of customers concerning a service; and

(2) The perceptions of customers regarding the levels of service actually provided by the company within that service category

Some researchers like Kwan, W., & Hee, T J (1994) have used SERVQUAL entirely

to investigate bank service Other banking researchers, although did mention SERVQUAL in their comments on pertinent literature, chose not to use SERVQUAL attributes or its dimensions to measure bank service quality Among them are Avkiran (1994), who investigated bank service quality in branches using 17 service quality attributes which are emerged into four dimensions including staff conduct, credibility, communication, and access to teller services or Johnston (1997) identified 18 determinants of bank service quality in terms of their relative importance and their effect on satisfaction and dissatisfaction However, Carrillat et al (2007) approved that SERVQUAL’s dimensions are contextual and not universally applicable, the number and composition of the service quality dimensions are probably dependent on the

service setting An additional dimension, convenience, is added in service quality model designed by Choudhury, K (2008) and Kumar, M et al., as it is one of major concern for the bank customers particularly in Malaysia and India The perception of service “convenience” may affect customers’ overall evaluation of the service, including satisfaction with the service and perceived service quality and fairness (Berry

et al.,2002)

In this study, we also use modified SERVQUAL model with added Convenience factor

in order to develop ourselves model for retail banking, which is assumed to contain six dimensions (see Figure 1) with number of statements to be defined in the next session

Figure 1 Modified SERVQUAL Model

Chapter 2 Research Methodology

Figure 2 Research Process

A five section of survey (demographics, service expectations, service performance, overall satisfaction and customer feedback in order to improve service quality) was especially designed and used for data collection (see Appendix 2 – Questionnair) Service expectations and performance scores were measured in identical five point Likert scales as was overall service quality and feedback on how to improve bank service quality

The battery of service attributes was built through reviewing the literature and conducting focus groups of banking employees of Techcombank The first stage, literature review, produced an extensive list of 67 items listed in Table 1 include modified SERVQUAL, definitions of the 18 determinants of service quality and bank specific service quality measures such as BANQUAL-R (e.g Parasuraman et al., 1991; Johnston, 1997; Avkiran, 1994; Kumar et al., 2009; ) Focus groups discussion reduced the list down to 22 items (Table 1) that are incorporated in the questionnaire after being several times of correction The detail questionnaire is attached in this Appendix 2

We keep 22 items in our questionnaire for developing the service quality model because some of items regarding Tangibles dimession also include in current our quality standard control checklist that we mentioned in introduction part of this report such easy bank location, convenient internal areas, neat and clear facilities Other criterias are added into this list because some of them are not available on current standard such as website with clear and up to date information, convenient internet banking or staffs play role as financial consults instead of simple banking saleman

Table 1 Questionnaire for evaluating Service quality at the banks

1 TANGIBLES Ngân hàng đ c đ t trên các tr c đ ng l n, d ti p c n, d nh n bi t và trong khu

v c có an ninh/Bank locations are at main street with easy to access, recognition

and in safe place

2 TANGIBLES

Không gian giao d ch b trí thu n ti n, thoáng đãng, các phân khu ch c n ng thân thi n và d hi u v i khách hàng/Bank has convenient internal bank area with clear function areas and clear routing

3 TANGIBLES Ngân hàng có c s v t ch t s ch s , ng n n p , sáng s a/Bank has neat and clear

physical facilities

4 TANGIBLES Ngân hàng có bãi gi xe r ng rãi, an toàn/Bank has wide and safe car/motorcycle

parking

5 TANGIBLES Nhân viên có ngo i hình a nhìn/ có tác phong chuyên nghi p/ Bank has employees

with professional and good look apprance

6 TANGIBLES

Các n ph m Marketing thi t k n t ng, đ p m t (STK, th ATM, th , website, t

r i)/Bank has marketing materials related to services/products with nice and impressive design (Saving book, ATM card, envelop, website, brochures and leaflets

7 RELIABILITY Ngân hàng có h th ng x lý giao d ch nhanh chóng, chính xác, không l i/Banking

system runs effectively, timely and free from errors

8 RELIABILITY

Ngân hàng ch đ ng thông báo/cam k t th i gian x lý xong giao d ch và th c hi n đúng cam k t/Bank proactively tell customers when transaction will perform and perform as promised

9 RELIABILITY

Ngân hàng ch đ ng thông báo đ y đ , chính xác, k p th i các thông tin m i v s n

ph m/d ch v , các thay đ i v lãi su t, phí/Bank proactively tell customers about new information related to products/services, fees

10 RELIABILITY Ngân hàng cam k t b o m t thông tin khách hàng/Bank has commitment regarding

customer security

11 ASSURANCE Nhân viên ngân hàng có thái đ l ch thi p, thân thi n/Employees have warm and

polite attitude

12 ASSURANCE

Nhân viên cung c p đ y đ chi ti t t t c các thông tin s n ph m/d ch v theo yêu

c u c a khách hàng/Employees advise customers about products/services fully meet customer requirements

13 ASSURANCE Nhân viên th c hi n các giao d ch nhanh chóng, chính xác/Employees perform

transactions timely and exactly

14 RESPONSIVENESS

Nhân viên ghi nh n và gi i quy t/h ng d n x lý khi u n i khách hàng m t cách nhanh chóng, chính xác/Employees receive and solve/guide customer complaints exactly and timely

15 RESPONSIVENESS

D ch v Contact center 24/7 k t n i nhanh chóng, ph n h i chính xác, thân thi n/Bank has Contactcenter 24/7 quickly receive customer call, answer warmly and exactly

16 RESPONSIVENESS

Ngân hàng không đ khách hàng đ i lâu và có các lo i n c u ng, bánh k o, báo chí, TV ads, ph c v khách hàng trong khi ch /giao d ch/Bank ensure short waiting time and deliver waters, cookies and newspapers during waiting time

17 EMPATHY

Nhân viên t o cho khách hàng c m giác đ c quan tâm khi giao d ch v i ngân hàng (ví d luôn ch đ ng chào h i/ h tr khách hàng khi c n thi t)/Employees give customers personal attention for example proactively welcome customers or support customers if needed

18 EMPATHY

Nhân viên t v n cho khách hàng các gi i pháp tài chính linh ho t phù h p theo nhu c u khách hàng/Employees advise customers flexible financial solutions according to financial status of customers

19 EMPATHY

Ngân hàng ch m sóc khách hàng liên t c sau khi khách hàng s d ng d ch v (nh

g i các tin nh n chúc m ng, quà t ng vào các ngày đ c bi t nh sinh nh t, l

t t)/Bank takes care customer after sales/services such as sending a message/gift in some special cases like customer’s birthday, Tet holiday

20 CONVENIENCE

M ng l i ATM b trí nh ng đ a đi m thu n l i, đáp ng t t nhu c u rút ti n c a khách hàng và luôn trong tình tr ng ho t đ ng t t/Bank has ATM network which locate in convenient places and always in good working condition with enough cash amounts according with customers’ cash withdraw

21 CONVENIENCE Ngân hàng có Website d s d ng, thông tin đ c c p nh t liên t c, đ y đ rõ

ràng/Bank has easy use website with clear and up to date information

22 CONVENIENCE Ngân hàng có d ch v internet/mobile banking đa d ng, thu n ti n cho KH s

d ng/Bank has diversified, convenient and easy to use internet banking

Table 2 Vietnamese translated versions of Service quality models

SERVQUAL Model provided by

c n, khi vào trong ngân hàng c m th y d dàng l a ch n và có bi n ch d n rõ ràng

Willingness of branch staff to help me/Nhân viên ngân hàng s n sang giúp đ

XYZ bank’s physical facilities are visually appealing./Các

c s v t ch t c a công ty xyz trông r t b t m t

Aesthetics: Extent to which the components of the service package are agreeable or pleasing

to the customer, including both the appearance and the ambience of the service environment, the appearance and presentation of service facilities, goods and staff./ th m m cao: T ng

y u t c a d ch v phù h p và làm hài lòng khách hàng, bao g m c môi tr ng d ch v , s

th hi n và trình bày s s v t ch t thi t b , s n ph m và nhân viên

Promptness of service from branch staff/Nhân viên ngân hàng th c hi n d ch v nhân chóng

XYZ bank’s employees are neat-appearing /Nhân viên

công ty xyz n m c r t t m t t

Attentive/helpfulness: The extent to which the service, particularly contact staff, either provide help to the customer or give the impression of being interested in the customer and show a willingness to serve./S quan tâm/Giúp đ : Th hi n s quan tâm và s n lòng ph c v

Concern shown by branch staff if queues get too long/B t đ u lo l ng khi th y nhi u khách hàng s p hàng ch

Materials associated with the service (such as pamphlets

or statements) are visually appealing at XYZ bank./

Availability: The availability of service facilities, staff and goods to the customer In the case

of contact staff this means both the staff/customer ratio and the amount of time each staff member has available to spend with each customer/S s n sàng c a trang thi t b , nhân viên

và s n ph m i v i nhân viên liên l c v i khách hàng thì c t l nhân viên/ khách hàng và

th i l ng m i nhân viên có đ sãn sàng ph c v cho t ng khách hàng

Branch staff helping me learn how to keep down

my banking costs/Nhân viên ngân hàng ch cho khách hàng làm th đ gi m chi phí ngân hàng

When XYZ bank promises to do something by a certain

time, it does so/Khi công ty xyz h a làm đi u gì đó vào

th i gian nào đó thì h s làm

Care: The concern, consideration, sympathy and patience shown to the customer This includes the extent to which the customer is put at ease by the service and made to feel emotionally (rather than physically) comfortable./S chú ý, xem xét, thông c m và kiên nh n

th hi n v i khách hàng Bao g m c vi c đem l i cho khách hàng d ch v mà khách hàng

c m th y tho i mái và s tho i mái này là s tho i mái v m t tinh th n/ c m xúc ch ko đ n thu n là s tho i mái v m t v t lý

Branch staff greeting me when it’s my turn to be served/Chào khi b t đ u giao d ch

When you have a problem, XYZ bank shows a sincere

interest in solving it/Khi b n g p tr ng i, công ty xyz

ch ng t m i quan tân th c s mu n gi i quy t tr ng i

đó

Cleanliness/tidiness: The cleanliness, neat and tidy appearance of the tangible components of the service package, including the service environment, facilities, goods and contact staff./S

xu t hi n s ch s , ng n n p và g n gàng c a các y u t h u hình c a gói d ch v , bao g m c môi tr ng d ch v , trang thi t b và nhân viên

Respect for privacy of my financial affairs when I

am standing at the counter/Nhân viên ngân hàng

th hi n s thông c m khi khách hàng g p v n đ XYZ bank performs the service right the first time/Công

ty xyz th c hi n d ch v đúng ngay t l n đ u Comfort: The physical comfort of the service environment and facilities./S tho i mái v t lý c a môi tr ng và trang thi t b

Personal attention I receive from branch staff/Th

hi n thái đ quan tâm khách hàng XYZ bank provides its services at the time it promises to

do so/Công ty xyz cung c p d ch v đúng nh th i gian h

đã h a

Commitment: Staff's apparent commitment to their work, including the pride and satisfaction they apparently take in their job, their diligence and thoroughness./S cam k t c a nhân viên trong công vi c, bao g m c ni m t hào và s th a mãn mà h có đ c t công vi c, t siêng n ng và chu đáo c a h

Branch staff being sympathetic when I have problems/Nhân viên ngân hàng làm cho ngân hàng

c m th y tho i mái khi h vay n

XYZ bank insists on error-free records/Công ty xyz l u ý

đ không x y ra m t sai xót nào

Communication: The ability of the service to communicate with the customer in a way he or she will understand This includes the clarity, completeness and accuracy of both verbal and written information communicated to the customer and the ability to listen to and understand the customer./Nhân viên communicate v i khách hàng sao cho khách hàng có th hi u Bao

g m s rõ ràng, s hoàn ch nh và s chính xác c a c thông tin giao ti p b ng l i hay b ng

v n b n và kh n ng nghe và hi u khách hàng

Expression of genuine concern if there is a mistake

in my account/Th hi n s quan tâm lo l ng khi khách hàng có v n đ

Employees of XYZ bank tell you exactly when services

will be performed/Nhân viên công ty xyz cho b n bi t khi

nào th c hi n d ch v

Employees of XYZ bank give you prompt service/Nhân

viên công ty xyz nhanh chóng th c hi n d ch v cho b n

Employees of XYZ bank are always willing to help

you/Nhân viên công ty xyz luôn s n sàng giúp b n

Competence: The skill, expertise and professionalism with which the service is executed

This includes the carrying out of correct procedures, correct execution of customer instructions, degree of product or service knowledge exhibited by contact staff, the rendering of good, sound advice and the general ability to do a good job./K n ng, s thông thái và chuyên nghi p v i d ch v đ c th c hi n Vi c này bao g m ti n hành quy trình đúng và th c hi n đúng theo ch d n c a khách hàng, m c đ am hi u v s n ph m

Branch staff making me feel at ease when applying for a loan/T o cho khách hàng c m giác nh nhàng khi n p h s vay

Employees of XYZ bank are never too busy to respond to

your requests/Nhân viên công ty xyz không bao gi qúa b n

đ n n i không đáp ng yêu c u c a b n

The politeness, respect and propriety shown by the service, usually contact staff, in dealing with the customer and his or her property This includes the ability of staff to be

unobtrusive and uninterfering when appropriate./S l ch thi p, tôn tr ng và thích nghi đ c

th hi n b i công vi c, th ng là t nhân viên ti p xúc v i khách hàng, trong vi c x lý v i khách hàng hay tài s n c a h Vi c này bao g m kh n ng nhân viên th c hi n sao cho không phô tr ng và ko can thi p khi thích h p

Politeness of branch staff/Thái đ l ch s c a nhân viên chi nhánh

The behaviour of employees of XYZ bank instils confi

dence in customers/Cách c x c a nhân viên xyz gây ni m

You feel safe in your transactions with XYZ bank/B n c m

th y an tòan trong khi giao d ch v i công ty xyz

Friendliness: The warmth and personal approachability (rather than physical approachability) of the service, particularly of contact staff, including cheerful attitude, the ability to make the customer feel welcome./S thân thi n: S m áp, thái đ vui v và làm cho khách hàng c m th y đ c chào đón

Ability of branch staff to apologise for a mistake/Nhân viên ngân hàng s n sàng xin l i Employees of XYZ bank are consistently courteous with

you/Nhân viên công ty xyz luôn ni m n v i b n

Functionality: The serviceability and fitness for purpose or "product quality" of service facilities and goods./N ng l c t o m t s n ph m/d ch v có "ch t l ng"

Branch staff’s knowledge of bank’s services and product/

Employees of XYZ bank have the knowledge to answer

your questions/Nhân viên công ty xyz có đ hi u bi t đ tr

đ c bi t chú ý đ n b n

Reliability: The reliability and consistency of performance of service facilities, goods and staff This includes punctual service delivery and ability to keep to agreements made with the customer./S tin t ng: ng nh t trong vi c cung c p d ch v , gi đúng cam k t v i khách hàng

Number of open tellers during the busy hours of the day/Có nhi u nhân viên teller vào nh ng lúc cao

đi m trong ngày XYZ bank has operating hours convenient to all its

customers/Côngty xyz làm vi c vào nh ng gi thu n ti n

Responsiveness: Speed and timeliness of service delivery This includes the speed of throughput and the ability of the service to respond promptly to customer service requests, with minimal waiting and queuing time./S ph n h i: T c đ và th i gian cung c p d ch v bao g m c th i gian ch và th i gian x p hàng ng n nh t

Ease of contacting the branch manager/Khách hàng

c m th y tho i mái khi liên l c giám đ c chi nhánh

XYZ bank has employees who give you personal

attention/Công ty xyz có nhân viên bi t quan tâm đ n b n

Personal safety of the customer and his or her possessions while participating in or benefiting from the service process This includes the maintenance of confidentiality./S an toàn cá nhân trong khi tham gia s d ng d ch v bao g m s b o m t

Ease of getting through to the branch on the telephone/Khách hàng c m th y tho i mái khi g i

đi n tho i đ n ngân hàng XYZ bank has your best interests at heart/Công ty xyz l y

l i ích c a b n là đi u tâm ni m c a h

Employees of XYZ bank understand your specifi c

needs/Nhân viên công ty xyz hi u rõ nh ng nhu c u c a b n

Employees of XYZ bank are always willing to help

you/Nhân viên luôn s n sàng giúp b n

Original model provided by Parasunaman et

Branch staff telling me when services will be performed/Nhân viên thông báo khi nào giao d ch

s đ c th c hi n Clarity of correspondence I receive from my branch/Nh n đ c các ph n h i rõ ràng t chi nhánh

Branch staff keeping me informed about matters of concern to me/Ti p t c thông báo cho khách hàng các v n đ khách hàng quan tâm

Branch staff keeping their promises to me/Nhân viên gi l i h a

Ability of branch staff to put a mistake right/Kh

n ng s a l i c a nhân viên Feeling of security in my dealings with the branch staff/C m giác an toàn khi giao d ch v i nhân viên ngân hàng

Ability of branch staff to get information quickly from the computer/Kh n ng x lý thông tin nhanh chóng t máy tính

Questionnaires were asked by authors to customers who come to branches to transactions like opening saving book, cash transferring to bank account The method of conducting those surveys was not efficient because it took more than 15 minute to complete one survey The most of time spent was on explainning to customers about every question to make sure they understood the content of each question We conducted about 6 – 7 surveys but only one of them was completely finnished by customer who is a bank employee In addition, perceptions of almost customers were asked about service quality are simple as per their opinion, bank with good service quality only has nice and polite employees, fast transactions and nice branch areas while employee cum customer was interested in the list

of service quality criterias

Therefore, in order to increase response rate and to reduce the time spent for conducting surveys, we have decided to consider employees as customers because they currently are using the Techcombank products and services Employee evaluations of service quality at banks are aslo mentioned in researches of Allred (2001) and Berry et al (1988)

Hard copies of 160 questionnaires were distributed to staffs of different departments working in Techcombank headoffice in Ho Chi Minh City 149 surveys were returned within 2 days – a great number in short time is over author’s expectation Four questionnaires were rejected due to excessive missing data and thus, the total valid sample size was restricted to 145

Data analysis

Data input was done on Microsoft Excel 2013, after that data was imported into SPSS version 20 in order to analyze data

The Sample characteristics and banking behavior

The sample consists of 47 per cent male and 53 per cent female respondents The majority

of the respondents (i.e 57.24 per cent) belong to the age group of 30-39 years, followed by the age group of 23-29 that constitute 35.86 per cent of total respondents Most of the respondents have been working for Techcombank above 1 year, 43.45% of them working over 5 years, 21.38% of them staying with Techcombank over 3 years

Table 3 Gender and Working Experience in Techcombank

In addition to use current account product, 58.62% of staffs use saving products, while

33.08% of them having housing or installment loans (12.41% of them use housing loan and

20.67% of them use installment loan) However, almost products include 70.59% of saving

products, 83.33% of housing products and 77.33% are using by staffs who have been using

Techcombank products above 3 years (see Table 4) In the other hand, when we look take a

look on Table 4, it is found that above 60% of them have been working for Tehcombank

more than 3 years In other words, staffs working in Techcombank above 3 years have better

customer experiences than others (see in Table 5)

From 1 to 2 years

From 2 to 3 years Above 3 years

Count % Count % Count % Count % Count % Count % Count %

Table 4 Statistics of using Products with Techcombank

Number of working years in Techcombank

Under 1 year From 1 to 3 year From 3 to 5 year Above 5 year

Products months

Under 1

years 8.28% 11 7.59% 1 0.69% 0 0.00% 0 0.00% From 1

To determine the reliability of the scale of expected service, item analysis and the internal consistency coefficients were estimated Internal consistencies of the total scores were assessed by use of Cronbach’s alpha coefficients Cronbach’s alpha is computed in terms of the average intercorrelations among the items measuring the concept

The reliabilities for all the factors are calculated and presented in Table 6 As it is shown, all reliabilities were adequate since the Cronbach’s alpha values for each were significantly greater than the prescribed 0.7 thresholds The values varied from 0.798 for convenience to 0.889 for competence showing that our SERVQUAL instruments are sufficiently reliable

However, it is considered whether item woulde be removed if “Cronbach's Alpha if Item deleted” are higher than Cronbach’s alpha, particularly, items include Reliability-Bank Security, Responsiveness-Waiting time, Empathy-Individual attention, Convenience-ATM Network need to be reviewed during testing SERVQUAL model with Factor analysis

# Item

Scale Mean

if Item Deleted

Scale Variance if Item Deleted

Corrected Item-Total Correlation

Cronbach's Alpha if Item Deleted

Cronbach's Alpha

Table 6 Cronbach’s alpha calculation

This study is based on the modified SERVQUAL model, which is assumed to contain six dimensions with 22 statements each on perception as well as expectation The factor analysis has been used to test if the dataset exactly detect the dimensions specified previously

The sample size is chosen based upon the general guidelines for sample size that depends upon the number of variables involved in the study As the instrument used in this study has