The impact of online infomation system quality dimensions on overall tnternet banking service quality and custemer satifaction in vietnam

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School Of Business NGUYỄN THỊ HẠNH DUNG THE IMPACT OF ONLINE INFORMATION SYSTEM QUALITY DIMENSIONS ON OVERALL INTERNET BANKING SE

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School Of Business

NGUYỄN THỊ HẠNH DUNG

THE IMPACT OF ONLINE INFORMATION SYSTEM QUALITY DIMENSIONS ON OVERALL INTERNET BANKING SERVICE QUALITY AND CUSTOMER SATISFACTION IN VIETNAM

MASTER OF BUSINESS (Honours)

Ho Chi Minh City – Year 2014

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School Of Business

NGUYỄN THỊ HẠNH DUNG

THE IMPACT OF ONLINE INFORMATION SYSTEM QUALITY DIMENSIONS ON OVERALL INTERNET BANKING SERVICE QUALITY AND CUSTOMER SATISFACTION IN VIETNAM

MASTER OF BUSINESS (Honours)

Supervisor

Dr Nguyễn Thị Nguyệt Quế

Ho Chi Minh City – Year 2014

ABSTRACT

The development of scientific technology, especially the development of the information technology have a strong impact on all aspects of life, economic - social, change awareness and method of manufacturing business many areas, many different economic sectors And banking is the sector which activate primarily base on modern information technology is influenced strongly

Nowadays, developing internet banking services is the inevitable trend in Vietnam Because Internet banking brings the great benefits for customers and the economy, due to its utility, convenience, promptitude, accurate and secure The banks enhance expressly quality of internet banking service to satisfy the customer aim to higher profit

The success of a internet banking service depend on three dimensions : product, service quality, technology There are many studies research about the factors impact on internet banking service quality and how to develope them to satisfy the customer 's demands but in Vietnam very few stuies mentioned to the quality of information technology while internet banking service quality depends primarily on information technology system The customer will not satisfy with internet banking service quality if the information technology system don’t operate well and trouble happen frequently

Based on that, the study was conducted to research "The impact of online

information system quality dimensions on overall internet banking service quality and customer satisfaction in Vietnam”

The study was conducted by exploratory factor analysis (EFA) method and multiple linear regression (MLR) for measuring model The survey questionnaires were transfer to a sample of 250 consumers who has used internet banking services in Vietnam The result revealed that six dimensions of online Information system quality including Aesthetic, Timeliness, Contents, Ease of use, Security, Accuracy are important dimensions impact on customer satisfaction in using Internet banking and Accuracy is the most important dimensions Based on the results of research, the author hopes that the bank managers realized the big influence of information system quality on internet banking service quality to carry out effective solutions to develop internet banking service in Vietnam

TABLE OF CONTENTS

ABSTRACT 1

LIST OF FIGURES 6

CHAPTER I: INTRODUCTION 7

1.1 Research background 7

1.2 Problem statement 9

1.3 Research objectives 10

1.4 Significance of the research 10

1.5 Research scope and methodology 11

1.5.1 Research scope 11

1.5.2 Research methodology 11

1.6 Thesis structure 12

CHAPTER 2: LITERATURE REVIEW and THEORETICAL MODEL 14

2.1 Online information system quality 14

2.1.1 Definition of online information system quality 14

2.1.2 Dimensions of online information system quality 14

2.2 Overall internet banking service quality 15

2.2.1Servicequalityconcept 16

2.2.2Overall internet banking service quality concept 17

2.2.3Impact ofonline information system quality dimensions onoverall internet banking service quality 20

2.3 Customer Satisfaction 24

2.3.1 Customer satisfaction definition 24

2.3.2Customer satisfaction in internet banking context 25

2.3.3 Impact of overall internet banking service quality on customer satisfaction

in E-banking context 26

2.4 Theoretical model and hypothesis 28

Summary: 28

CHAPTER 3: RESEARCH METHODOLOGY 29

3.1 Research Process 29

3.2 Measurement Scales 30

3.2.1 Measurement of online information systems quality dimensions 30

3.2.2 Measurement of overall internet banking service quality: 33

3.2.3 Measurementof customersatisfaction. 33

3.3 Questionaire design 34

3.4 Pilot study 35

3.5 Main survey 35

3.5.1Data collection method 35

3.5.2Sampling method 35

3.5.3Sample size 36

3.6 Data analysis techniques 37

3.6.1 Testing of reliability 37

3.6.2 Exploratory factor analysis (EFA) 38

3.6.3Multiple regression analysis 38

CHAPTER 4: ANALYSIS RESULT 40

4.1 Sample description 40

4.2 Testing reliability of measurement scales 41

4.3 Exploratory factor analysis 42

4.3.1 Testing measurement scales of online information system quality 42

4.3.2 Testing measurement scales of overall internetbanking service quality 46

4.3.3 Testing measurement scales of Customer Satisfaction 48

4.4 Testing correlations between all constructs 49

4.5 Testing research model and hypothesis 49

4.5.1The relationship between online information system quality dimensions and overall internetbanking service quality 49

4.5.2 The relationship between Overall internet banking service quality and Customer Satisfaction 52

4.6 Discussions of research findings 54

CHAPTER 5: CONCLUSION AND IMPLICATIONS 56

5.1 Conclusions 56

5.2 Managerial implications 56

5.3 Limitations and Recommendation for further research 58

REFERENCE 60

APPENDIX 69

LISTOFTABLES

Table 3.1: Measurementof aesthetics

Table 3.2:Measurementof timeliness

Table 3.3: Measurementof the content

Table 3.4:Measurementof ease of use

Table 3.5:Measurementof security

Table 3.6: Measurementof accuracy

Table 3.7: Measurement of overall internet banking service quality Table 3.8: Measurement of customersatisfaction

Table 3.9: The sample size

Table 3.10: Cronbach’s alpha reliability coefficient

Table 4.1: Demographic Characteristics of the Study

Table 4.2: KMO and Bartlett's Test

Table 4.3: KMO and Bartlett’s Test

Table 4.4: Rotated Component Matrixa

Table 4.5: KMO and Bartlett’s Test

Table 4.6: Rotated Comonent Matrix

Table 4.7: KMO and Bartlett’s Test

Table 4.8: Total Variance Explained

Table 4.9: Component Matrixa

Table 4.10: KMO and Bartlett's Test and Component Matrix Table 4.11:ANOVAb

Table 4.12:Model Summaryb

Table 4.13: Coefficientsa

Table 4.14:Model Summaryb

Table 4.15:ANOVAb

Table 4.16:Coefficientsa

LIST OF FIGURES

Figure1:Themodelof research

Figure2:Themodelof researchprocess

CHAPTER I: INTRODUCTION

In this chapter, the problems are discussed such as introducing the role and importance of internet banking in the banking industry; internet banking ‘s situation in VietNam; research objectives, scope and methodology Many researchers have discussed about internet banking but most of them has not focused on online information system quality dimensions that affect customer satisfaction in internet banking And the

cause the thesis was chosen

1.1 Research background

Internet banking could be conceptualized within the context of electronic banking Internet banking is the situation where “customers can access their bank account via the

Internet using a PC or mobile phone and web-browser” (V.A Zeithaml et al.,2002, p.2)

Currently, Internet banking relies on the Internet environment, service is provided entirely through the network environment and there is combining commercial banking system and traditional electronic goods, such as the distribution of products and services

on the old new distribution channels In recent years, Internet banking has grown worldwide with fast speed This service is also considered as retail distribution channels and it is the most successful banking services in terms of growth rate of number of customers Internet banking allows customers to use the service through the bank’s website anytime, anywhere, quickly, conveniently at a lower cost than other traditional services of banks (White and Nteli, 2004) Internet banking enables customers to save time, take control of their personal finances and even help the environment by opting to receive electronic statements Customer can access accounts and general information on bank products and services through a personal computer or other intelligent device Internet banking products and services can include detailed account information for corporate customers as well as account summary and transfer money

Internet Banking helps banks save up human resources by multiple steps have been automated but still ensure for provide high quality services to a large number of their customers And so, not the profits of the bank increased but more importantly, their reputation has been enhanced.For the banks, internet banking also allows them to reduce operating costs, reduce dependence on the expansion of the branch network, expanding business sector, support the strengthening relationship with customers (Shih and Fang,

2004).Through Internet Banking, communication and transactions between banks and customers has also been speeded up Moreover, intense pressure of uncertain economic outlook, a growing threat from new entrants foster each banks to differentiate themselves

to compete with both local and foreign banks Therefore, the decision to provide Internet Banking is currently perceived as vital for customer retention and maintaining competitive advantage (DeYoung and Duffy, 2002)

According to Gartner Group report, the growth rate of online banking services in the U.S is very high, from ten million users in 1999 to thirty -five million users in 2003 According to the report of the organization, online banking services are also used similar popularity in the U.S., in 2009, approximately 30-40 % of the UK population currently use this service In Brazil, there are about 18.1 million users of online banking services in

2004 It is compared with 8.3 million users in 2002, including 16.2 million user accounts are individual subscribers Here, these financial sites are always be the sites traffic and most used, with the figure of 50 % of the total 13.5 million Internets account login regularly (Vichuda and Serap Ekin, 2001) Moreover, if the only consideration in 2004, the Bank of Brazil has invested about 2.1 billion dollars in the technology sector (Febraban, 2004), including the development of online banking services and a number of other areas

Starting in 1994, internet banking in Vietnam was built on the foundation of information technology and banking technology at a low level, only allowing customers

to access to get information and makesimple payments In just a short time, the level of information technology in our country has made significant improvement, it leads to the rapid development of the industries applied the information technology such as banking sector.In recent years,internetbanking services is growing more aggressive and having strong shifts However, internet banking in Vietnam is only in the early stages of development and was monotonous, meager and not attract many customers Non-cash payment in Vietnam is still low, the proportion of cash used in bank circulation / total means of payment is ranged between 24-25% This rate is much higher than other countries in the region such as Thailand (6.3%), China (9.7%) Psychology preferred cash

in using VND, foreign currencies and the understanding of banking services by Vietnamese are low is one of the reasons for extending banking services difficultly

The success of a internet banking service depend on three dimensions : product, service quality, technology But Vietnam is a developing country so the development and security of information technology sector is not as high as developed countries leads to the quality of internet banking service is not high affect the customer satisfaction So there are many stusies research about which factors impact to internet banking and how develope them to satisfy the customer 's demands but there are not many stuies mentioned the quality of information technology in Vietnam while internet banking service would be have some problem if the technology has trouble Summary, although a service which be ad well, the abundant human resource but the technology is not good, almost customers won't want to use this service In the scope of this thesis, we want to research about the impact of online information system quality dimensions on overall internet banking service quality and customer satisfaction in Vietnam

1.2 Problem statement

Consumer satisfaction is the major problem for the businesses that are operating in Electronic Commerce systems Good customer service quality is the main factor that will determine, in the future, whether the businesses will survive or fail (Thompson, Green and Bokma,2000) Improving customer service helps to build and maintain customers relationships Recently, many banks have used the Internet as a new market channel to offer their customers avariety of services 24 hours a day With internet banking service,

to satisfy customer’s needs, many banks need to set up web sites that provide quality information and services to customers Better service quality typically can help to get higher market share and better returns (Slu and Mou, 2003) It is desirable for online service providers to uncover what attributes consumers utilized in their assessment of overall service quality and satisfaction and which attributes are more important (Yang and Fang, 2004) Internet-based services are believed to have convenience, interactivity, relatively low cost However, there is no much research about the factors that affect customer satisfaction with Internet-based services (Khalifa and Liu, 2003) Due to rapid technological change and market competition, service quality becomes an increasingly important issue Therefore understanding overall internet banking service quality with customer satisfaction is need

Internet banking compared to traditional banking, heavily involves non-human interactions between customers and online bank information systems (Jun and Cai, 2001)

It is important that the banks provide customers with high quality services to survive in the highly competitive Internet banking industry For this, bankers first need to understand the attributes that customers use to assess service quality to monitor and enhance the internet banking service quality There are numerous studies that identified the key service quality dimensions in the traditional banking environment, but relatively little literature has investigated service quality attributes in the internet banking industry and the relation with customer satisfaction (Jun and Cai, 2001).Jun and Cai (2001) indentified online information system quality is one of three broad conceptual categories related to Internet banking service quality There is no much researchers concern about online information system quality while online information system quality is vital to internet banking users’ perceptions of overall internet banking service quality because it

is a key enabler of the services they wish to use

There are many different perceptions about internet banking webiste quality, but in summary there are six dimensions belong to online information system quality They are ease of use, aesthetic, timeliness, contents, security and accuracy (Jun and Cai, 2001) So that, the thesis will focus to analyze deeply about relationship between online information system quality dimensions to overall internet banking service quality and customer satisfaction

1.3 Research objectives

The main objective of this research is to investigate the usefulness and applicability

of theoretical model in measuring the impact of online information system quality dimensions to overall internet banking service quality and customer satisfaction The dimensions of online information system quality including aesthetic, timeliness, contents, ease of use, security, accuracy

1.4 Significance of the research

This study has important implications for both practical business (leaders of commercial banks, marketing managers…) and academic (researchers, students of the business administration department…) as follow: The research will help the leaders of commercial banks respond the satisfaction of customers It leads to increase the amount consumer which will use this system In other sides, it helps the bank has the right decision to develop the Internet Banking through six dimensions such as Aesthetic, Timeliness , Contents, Ease of use , Security , Accuracy Besides,the results of this study

are also a basis for references in developing other research about internet banking service to practical applications

1.5 Research scope and methodology

1.5.1 Research scope

This study is conduct in Ho Chi Minh City, one of the biggest economic centers of Viet Nam The research object is the customers who are using the intenet banking service Due to limited time and cost, the research surveyed about 250 customers of some banks in HCMC such as Vietinbank, Vietcombank, ACB, Sacombank To approach these customers who were surveyed directly at the banks, we use question "Have you ever used internet banking service?" If the answer was “Yes”, we would be continued the survey, ifnot we stopped the survey

The scope of this survey is primarily in HCM province, so the results are not covering the whole territory of Vietnam This is also the limitation of thesis

1.5.2 Research methodology

The research conducted the survey of using internet banking services All data of the survey would be got from studies, articles and journals to make the quality questionaires to make clearly the target of thesis There were two kinds of survey to be used, they were paper survey and online survey Online survey would be sent to the internet banking users via emails and paper suarvey would be given direcly to customers

in the banks The content of two kinds of survey was similar

This study used two research methods The first stage, qualitative research identifies the models, factors, suitable measurement variables for survey Through the previous relevant researches, the questionnaire was built then running the pilot test for checking the efficiency and the meaning of the questions The pilot test was purposed to explore and define the relevant items and building a completed questionnaire The second stage, quantitative research was the main approach of this study The goal is to identify the impact of online information system quality dimensions on overall internet banking

service quality and customer satisfaction in Vietnam

Sampling method be applied was the convenience sampling method This means that sampling based on convenience or easy to approach the object, where investigators are easily to meet objects Convenience sampling method is non-random sampling (or non-probability sampling) methods The limit of this method is sampling units in overall

have not be equal ability to be selected The non-random sample selection is completely dependent on the experience and understanding of the researcher about the overall, so the investigate results are often subjective

Data analysis methods was used for study such as sample demographic, statistical analysis, tests of hypothesis, explore the research objectives and withdraw other findings from this study Accordingly, the descriptive analysis will be presented first to show respondents demographics, followed by the Cronbach’s alpha and exploratory factor analysis (EFA) for measuring model, finally multiple linear regression (MLR) analysis will be performed for hypothesis testing

1.6 Thesis structure

This thesis organizes in five chapters The first is the introduction of the study The second is the literatures review and hypothesis Following is the research method The next part is the results and limitations of the findings The conclusion comprises the final section of this research

• Chapter 1 – Introduction

This chapter first introduces about advantages internet banking service and reflects the current situation of it in Vietnam, due to affect the customer satisfaction on this service It leads to propose the research problem, research objectives and significance of this study

• Chapter 2 - Literatures review

Chapter 2 presents the theoretical foundation of the research, is all about presenting previous research done on the stream of studies related to customer satisfaction on internet banking service Including the definition and related problem overall internet banking service quality, customer satisfaction and online information system quality dimensions From that, the hypothesis are proposed for research model This chapter is concentrates on explaining each variable in the model, and reasons for choosing them to

be include in the research model

• Chapter 3 - Research Methodology

Chapter 3 introduces research methodology Research method describes the way of establishment of the measures and conducting the survey This part includes two steps, qualitative research to modify draft measurement scale and quantitative research to analyse the data collected to test the research hypothesis proposed in chapter 2

• Chapter 4 – Results of Data Analysis and Discussion

Chapter 4 translates data collected from survey, analyses data as well as discusses the result finding in connection with research model Accordingly, the research hypothesis are tested This chapter explains the empirical part of the study This part discusses the method for collecting data used to test the hypothesis, and it analyses the data received, its reliability and multiple regression

• Chapter 5 – Conclusions and Recommendations

The last chapter, chapter 5 discusses the research results by affirming the exploratory values as well as connecting to the realistic conditions to suggest the practical application This chapter includes conclusion, implication, and research limitations Lastly, the limitations are recognized to direct for further research in the future

References and appendixes are included in the end of thesis

Summary:

The thesis begins with introduction by discussing the research background and importance of internet banking Then the problem statement was defined to take a closed look at using internet banking in Viet Nam The research object is the customers who use the internet banking service Due to limited time and cost, the research surveyed about

300 customers of some banks in HCMC Finally, this chapter discussed on the research methodology

The most important thing to remember is that the banks need to provide customers with high quality services to survive in the highly competitive internet banking industry This is a fact acknowledged all over the world, and not the least in Ho Chi Minh City where internet usage in general are very popular

This research is show us how to customer satisfied of overall internet banking service quality and the bank managers need to care about what dimensions of online information system quality to develop the internet banking service

CHAPTER2: LITERATURE REVIEW AND THEORETICAL MODEL

Before carrying out the survey on the effect of dimensions of online information system quality to overall internet banking service quality and customer satisfaction, this chapter provide a theoretical background about online information systems quality dimensions, overall internet banking service quality and overall internet banking service quality Base on these, the conceptual research model and hypothesis are constructed

2.1 Online information system quality

2.1.1 Definition of online information system quality

The Internet is an innovative form of information technology, yet most commercial Web sites function as well-defined information systems Information system quality can

be divided into system and information quality System quality refers to software development caliber, while information quality embraces accuracy, timeliness, currency and reliability of information (DeLone and McLean, 1992)

2.1.2 Dimensions of online information system quality

When a customer accesses a Web site, the Web site can be considered as an information system and the customer as an end-user of the information system The Internet-based data processing, thus, can be regarded as an extreme case in an end-user computing environment where the users of Web sites seldom have direct interaction with the operations staffs of the Web sites In order to measure end-user computing satisfaction, Doll and Torkzadeh (1988) proposed five quality dimensions that influence

end-user satisfaction: content; accuracy; format; ease of use; and timeliness In

addition, Zeithaml et al (2002) have uncovered several quality dimensions related to

online systems- ease of navigation, flexibility, efficiency, site aesthetics, and security Online information system quality was operationalised with six dimensions (ease of use,

accuracy, security/privacy, contents, timeliness, and aesthetics) from the work of Jun

and Cai (2001)

Besides the main studies which mentioned, having others study research about the measurements of service quality related to Internet banking website such as:

Yoo and Donthu (2001) have developed a measurement instrument SITEQUAL,

which includes four dimensions: ease of use; aesthetic design; processing speed; and

security As for Internet banking, Sathye (1999), with respect to the adoption of Internet

banking by Australian consumers, found that two factors such as "difficulty in use" and

"security concern" are important reasons that customers do not want to use the service

Jayawardhena and Foley (2000) suggested that the features of Internet banking Web sites,

such as: the speed to download; content; design; interactivity; navigation; and

security, are critical to enhancing customer satisfaction Cox and Dale (2001) have

discovered and statistically validated four quality factors of a Web site These are: ease of

use (the design of the Web site); customer confidence (how the Web site generates

customer trust); online resources (capability of the Web site to offer products/services);

and relationship services (how the Web site bonds with the customer and inspires

loyalty) Santos (2003) has uncovered five dimensions of online systems quality - such

as ease of use, appearance, linkage, structure and layout, and content, and labeled

them as incubative dimensions

On the basis of a comprehensive review and synthesis of the extant literature on

SERVQUAL, Zeithaml et al (2002) detailed five broad sets of criteria as relevant to

E-SERVQUAL perceptions: (a) information availability and content, (b) ease of use or usability, (c) privacy/security, (d) graphic style, and (e) reliability/fulfillment

The above researches related to online information system quality in Internet banking mentioned to many different factors, but in generally they have the same as factors in the study by Jun and Cai (2001) So based on the research result of Jun and Cai

(2001), the thesic decided focus on six dimensions (ease of use, accuracy, security,

contents, timeliness, and aesthetics) of Online information system quality

2.2 Overall internet banking service quality

The main purpose of running a business is to pursue a better goal and higher profits Developed from Internet marketing and the traditional service quality literature, service quality is one of the key factors in determining the success or failure of electronic commerce (Yang, 2001) The concept of service quality in e-commerce, also called e-service quality, can be defined as the consumers’ overall evaluation and judgment of the excellence and quality of e-service offerings in the virtual marketplace

As for internet banking service, a well-designed website will create a different value from the normal, and improve interest of a consumer access to the site to do other transactions A well design website will create profits and contribution to a bank because

it makes increased consumer's satisfaction Internet banking service quality not only provides for a bank a better advantage of competitive, it also enhances the relationship between bank and consumers in terms of saving cost

2.2.1 Servicequalityconcept

According to Parasuraman, Berry and Zeithmal (1985), a perception of service quality is a result of a comparison between what consumers consider the service should

be and their perceptions about the actual performance offered by the service provider

Asubonteng et al (1996) defined service quality is the difference between customers’

expectations for service performance prior to the service encounter and their perceptions

of the service received Gefan (2002) said service quality as the subjective comparison that customers make between the quality of the service that they want to receive and what they actually get

In a long period, many researchers have tried to define and measure service quality For example, Lehtinen and Lehtinen (1982) indicated that the service quality had to be assessment on two aspects ,(1) the process of providing service and (2) the result of service Gronroos (1984) also proposed two components of quality services, which are (1) technique quality, that's what the customer received and (2) functional quality, show that how services are provide

However, when talking about service quality, we can not forget to mention the huge

contribution of Parasuraman et al (1988,1991) Parasuraman et al (1988) defines

service quality is the "different degree between the expectations of the consumers about services and their awareness about the service result" These authors have initiated and used qualitative research and quantitative to build and inspect components scale of service quality (called SERVQUAL scale) SERVQUAL scale was adjusted and inspected in many different types of services Finally the SERVQUAL scale includes 22 variables to measure five components of service quality such as reliability , responsiveness, assurance, tangible and empathy :

(1) tangibles, which pertain to the physical facilities, equipment, personnel and

communication materials;

(2) reliability, which refers to the ability to perform the promised services

dependably and accurately;

(3) responsiveness, which refers to the willingness of service providers to help

customers and provide prompt service;

(4) assurance, which relates to the knowledge and courtesy of employees and their

ability to convey trust and confidence; and

(5) empathy, which refers to the provision of caring and individualised attention to

customers

Parasuraman (1991) confirmed that the SERVQUAL is the complete measurement about service quality It’s worth, reliability and may be applied for every different type

2.2.2 Overall internet banking service quality concept

Internet banking could be conceptualized within the context of electronic banking Though it has been variously defined, according to Daniel (1999), electronic banking is the delivery of banks‘ information and services by banks to customers via different delivery platforms that can be used with different terminal devices such as personal computer and mobile phone with browser or desktop software, telephone or digital television Electronic banking, therefore, could be categorized into PC banking, Internet banking, TV-based banking, and Telephone-based banking It is a construct that consists

of several distribution channels Internet banking is the situation where ―customers can access their bank account via the internet using a PC or mobile phone and web-browser

(Zeithaml et al.,2002)

Many past studies have developed various models for understanding relevant service quality dimensions relevant to internet banking The empirical work of (Ho and Win,2010) was conducted in an emerging economy of Taiwan Internet banking sector, they developed and validated a five dimension internet banking service quality model that has 17-item measurement scale for measuring the service quality in internet banking

The dimensions were based on e-service quality model of (Cristobal et al.,2007) The

emerged dimensions for the internet banking service quality context are: web design, customer service, assurance, preferential treatment and information provision

Further studies have been done on how to measure service quality within banking

industry A study done by Joseph et al.,(1999) investigated the service quality within

banking industry when costumers are using Internet, telephone or ATM machines The study has shown that there are six factors when identifying service quality of electronic

banking They areconvenience/accuracy, feedback/complaintmanagement, efficiency, queue management, accessibility, customization.Bahia and Nantel proposed an alternative measure in how service is perceived in the banking industry Their results

were inspired by those done by Parasuraman et al.,(1988) and contained six dimensions:

effectiveness and assurance, access, price, tangibles, service portfolio andreliability Effectiveness and assurance means that customers should feel safe in using the bank Access is when customers expect the bank to have the latest technology so that they can perform their banking errands efficiently and safely Price is an important measuring instrument and Bahia and Nantel suggest that the price should be reasonable because it is attracting the customer Tangibles refer to the atmosphere of the bank where the effective service environment exists Service portfolio focuses on those services that are offered while reliability deals with trustworthiness of the banks from the customer’s point of view (Bahia,2000)

In a first attempt to adapt the SERVQUAL dimensions to e-services, Kaynama and Black (2000) subjectively evaluated the online services of 23 travel agencies and seven dimensions derived from SERVQUAL: responsiveness, content and purpose (derived from reliability), accessibility, navigation, design and presentation (all derived from tangibles), background (assurance), and personalization and customization (derived from empathy) One author who has extended the SERVQUAL conceptualization to the electronic context is Gefan (2002), who found that the five service quality dimensions collapse to three with online service quality: (a) tangibles; (b) a combined dimension of responsiveness, reliability, and assurance; and (c) empathy In that research, tangibles were found to be the most important dimension in increasing customer loyalty and the combination dimension most critical in increasing customer trust Yang and Fang (2004) found that ease of use and usefulness are important factors in evaluating online service quality Doll and Torkzadeh (1988) identified five quality dimensions that have an impact

on “end-user” satisfaction in an online environment: content, accuracy, format, ease of

use, timeliness The reliability and validity of these dimensions were confirmed by Doll

et al.(1994) and Hendrickson and Collins (1996) Wolfinbarger and Gilly (2002) have

found four online service quality dimensions through focus group interviews and an online survey These are web site design, reliability, privacy/security and customer service They found that reliability and fulfillment are the strongest predictor of customer

satisfaction With regard to the success of a web site, Liu and Arnett (2000) suggested four factors They are: system use, system design quality, information quality, and

playfulness Exploratory research done in the context of online retailing by Yang et al

(2004) revealed reliable/prompt responses, attentiveness, and ease of use had considerable impacts on both customers perceived overall service quality and satisfaction It also indicated that there is a significant positive relationship between overall service quality and satisfaction The resultof this reseach show that the key drivers are ease of use and reliability However, other factors such as accuracy, responsiveness and web site design are also important.Madu and Madu (2002) proposed

15 dimensions of online service quality dimensions based on literature review: performance, features, structure, aesthetics, reliability, storage capacity, serviceability, security and system integrity, trust, responsiveness, product/service differentiation and customization, web store policies, reputation, assurance and empathy

The difference of the other studies, Jun and Cai (2001), in a study of online banking, found that web site design, information, ease of use, access, courtesy, responsiveness, and reliability are significant dimensions that determine service quality

In 2001 one research was conducted on e-banking and service quality by Jun and Cai In

a new direction, based on the familiar factors of the previous studies on e-banking service quality, Jun and Cai identified seventeen dimensions which all could be divided into three categories: customerservice quality, online systems quality and banking service product quality Even their studies have been inspired by the SERVQUAL instrument but because of the e-banking special characteristics this instrument has been extended Customer service quality contains dimensions like reliability and credibility, but also communication and understanding the customer Online systems quality is about the security online and a demand of an easy to use e-banking program Banking service product quality is where customers want a variety of products and services that are offered through e-banking

In the other sides, with the development of the Internet Banking service by many periods, there were many researches about the factors which affect to the satisfaction of

customers Michel et al.(2008)based on the research of Jun and Cai (2001) to examine

relations between Online customer service quality; Online information system quality;

Banking service product quality and overall internet banking service quality And the relationship between overall internet banking service quality and customer satisfaction

They gave the results :

• Online information system quality is a significantly stronger predictor of overall internet banking service quality than both online customer service quality and banking service product quality individually and when combined

• When overall internet banking service quality is perceived to be high, customers are more likely to be satisfied with their online service and consequently will be more satisfied with their bank

So this thesis want to research deeply about the dimensions ofOnline information system quality with affects to Overall internet banking service quality

2.2.3 Impact ofonline information system quality dimensions onoverall

internet banking service quality

Online information system quality is vital to internet banking users’ perceptions of overall internet banking service quality because it is a key enabler of the services they wish to use (Jun and Cai, 2001) If the information system does not perform well, customers are not able to reliably make transactions or access information, compromising

their perceptions of service quality (Yang et al., 2004) If the web site is not informative,

or the design of the web site is not friendly, this will have a negative impact on customers’ perceptions of overall internet banking service quality The more conveniently customers can interact with the bank through the web site, the safer their online transactions, and the more error-free the transactions, the better customers’ perceptions with the service quality provided online

Some studies researched about dimensions of online information system quality including ease of use, accuracy, security, contents, timeliness, and aesthetic affect to overall internet banking service quality which were syntheticed such as:

According Jun and Cai (2001), aesthetic shows the atractiveness of the website.Having six dimensions of online information system quality which were found in their study They are ease of use, accuracy, security/privacy, contents, timeliness, and aesthetics Aesthetics is related to the concept that aesthetically appealing Web site would have a positive impact on drawing potential customers’ attention

Michel et al.(2008 ) based on the research of Jun and Cai (2001) to exam the

relationship between online information system quality dimensions and overall internet banking service quality and customer satisfaction They also showed dimensions similar

to Jun and Cai (2001) and gave the result as aesthesic was also one of the online sytem quality dimensions and impact positively to overall internet banking service quality Cao (2005) identified that web sites should be designed accordingly that will create an opportunity for users to find accurate information, easier search facilities, less loading time and ensure security because customers are most concerned with finding accurate information, searching fast and placing oder securely A quality website should also be

designed appealing Zviran et al.(2005) conducted a study to find out important factors

that drive user satisfaction from the web site They have empirically tested user satisfaction of different web sites and determined two characteristics: usability and user-based designed.In light of the above we suggest our first hypothesis:

H1a: Aesthetic is positively related to Overall internet banking service quality

Weinberg (2000) emphasizes that a page design should consider not only appearance but also loading time Researchers have studied the significance of waiting time in service evaluations Schleifer and Amick (1989) report that system response time

is inversely related to computer user satisfaction Weinberg (2000) concludes, in terms of waiting time on the internet, that is the best if the homepage loads relatively fast, and that efforts toward achieving this result will be rewarded One of the e-commerce challenges

on the web is when users experience intolerably long waits for a website’s page to load When the loading time exceeds the time that a web user is willing to wait, the web user will either reirect the web-browser to another website or quit using the web (Weinberg, 2000)

Jun and Cai (2001) gave six dimensions of online information system quality affect

to customer satisfaction and timeliness is one of these dimensions Timeliness mentions

up-to-date information Michel et al.(2008) examed the result of Jun and Cai to show

clearly the impact of timeliness to overall internet banking service quality and customer satisfaction If the banking transaction have an error, it should not take too long to correct the error after it is reported Internet banking acceptance relies closely on the management of consumer relationship (Goi, 2005) Thus, our secondhypothesis is:

H1b: Timeliness is positively related to Overall internet banking service quality

Barnes and Vidgen (2001) contend that WebQual should be use to evaluate a website from a customer’s point of view via four components: functionality, content, sevice and attractiveness Smith (2001) has developed several criteria to evaluate a government web site and they have tested these criteria on a government web site to see their applicability They have divided these criteria into two groups: information content criteria and ease to use criteria

Jun and Cai (2001) definitioned that “content” is information on products and services online or other informations that customer needs “Content is king” is a well-known slogan (Huizingh,2000) Providing information is the basic goal of a website (Bhatti et al,2000) Deciding what content to place on a website is extremely important The reasoning stands that the target audience a company wants to attract drive the site content (Day,1997) Lin an Lu (2000) address the issue of how customer’s acceptance is affected by the features and accurate information Perkowitz and Etzioni (1999) explore the importance of updated information with the notion of adaptive website Updated information means both updating existing content and adding new content to the site

(Ducoffe,1996) According to Michelet al.(2008 ), “content” measured by the customer’s

account information on internet banking website is well documented and clear Hence, our third hypothesis is:

H1c: Contents is positively related to Overall internet banking service quality

Rai et al (2002) studied users of a computerized student information system (SIS)

and found system quality and information quality to be determinants of satisfaction They have taken system quality as ease of use and defined it as the “degree to which the system

is user friendly”

Yang and Fang (2004) found that ease of use and usefulness are important factors in evaluating online service quality Exploratory research done in the context of online

retailing by Jun et al (2004) revealed reliable/prompt responses, attentiveness, and ease

of use had considerable impacts on both customers perceived overall service quality and satisfaction It seems that the key drivers are ease of use and reliability However, other factors such as accuracy, responsiveness and web site design are also important

The quality of Internet banking includes ease in signing on the system, of performing the transactions, and getting to a live person in case of access problems (Siaw and Yu,2004; Tan and Teo, 2000) Smith and Merchant (2001) find that online customers are very particular about having a website easy to read, as well as easy to navigate

Michel et al.(2008) measured “ease of use” by the layout of the information in internet

banking website is easy to follow; easy to complete a transactions through Internet banking website and easy to log on customer’s account A responsive website proves to

be highly important to end-users (Robbins and Styliano, 2003) Devaraj et al (2002)

suggest that aspects associated with transaction costs, service quality and easy access to information are important antecedents of e-commerce consumer satisfaction Hence, our fourth hypothesis is:

H1d: Ease of use is positively related to Overall internet banking service quality

Jun and Cai (2001) defined security is privacy and information transaction safety Zeithaml, Parasuraman, and Malhotra's (2000) defined “security” is degree to which the customer believes the site is safe from intrusion and personal information is protected Zeithaml, Parasuraman, and Malhotra (2005) detailed five broad sets of criteria as relevant to eSQ perceptions: (a) information availability and content, (b) ease of use or usability, (c) privacy/security, (d) graphic style, and (e) reliability/fulfillment Privacy (the protection of personal information) and security (the protection of users from the risk

of fraud and financial loss) have been shown empirically to have a strong impact on

attitude toward use of online financial services (e.g., Montoya-Weiss et al 2003) Michel et al.(2008 ) measured “security” by the bank not allowed misuse customers’s

personal information and make the customers feel safe to do online transactions Hence, our fifth hypothesis is:

H1e:Security is positively related to Overall internet banking service quality

At present, online banking services do not differ from each other very much All services contain almost the same basic properties without exclusivity It seems that banks have attempted to minimise risks by developing online services that are primarily reliable This can be observed by looking at the high user satisfaction with accuracy and

timeliness (Pikkarainen et al.,2006)

Doll and Torkzadeh (1988) identified five quality dimensions that have an impact

on “end-user” satisfaction in an online environment: content, accuracy, format, ease of use, timeliness “Accuracy” is accurate online transactions and there're no errors in interface and contents (Jun and Cai, 2001) Banks must provide accurate account information of customers’ financial transactions Customers expect Internet banking transactions to be accurate and free of errors (Goi, 2005) Customers are more sensitive with finding more accurate information, security and fast search facilities (Cao,2005)

Michel et al.(2008) measured “accuracy” by online transactions and the information

on internet banking web site are always accurate and the online transactions are accurately dealt with Jun and Cai (2001, pp.287-288) with their research indentified

“security” is one of 17 dimensions of internet banking service quality So our six hypothesis is:

H1f: Accuracy is positively related to Overall internet banking service quality

2.3 Customer Satisfaction

2.3.1 Customer satisfaction definition

Customer satisfaction has become a major area of marketing that has received considerable publications from practitioners and scholars in the last two decades Several research have defined satisfaction in a different way Satisfaction is a person‘s feeling of pleasure or disappointment resulting from comparing a product‘s performance (outcome)

in relation to his or her expectation (P Kotler and K Keller,2006) Zeithaml and Bitner (2000) defined customer satisfaction as the customers’ evaluation of a product or service

in terms of whether that product or service has met their needs and expectations Consumer satisfaction is a phenomenon of particular importance in the evaluation process of a shopping, consumption, or product or service usage experience and is therefore vital in long-term consumer responses (Gronroos, 1991)

Customer satisfaction has been recognized as an important element that drives customer retention, loyalty and post-purchase behavior of customers (Heskett, Sasser and Schlesinger,1997; Rust and Olive ,1994) Satisfied customers tend to have higher usage of service, possess stronger repurchase intention, and are often eager to recommend the product or service to their acquaintances than those who are not satisfied In addition, dissatisfied customers are more likely to search for alternative information and switch to

another retailer, and is also more resistant to developing a close relationship with the

retailer (Ribbinket al.,2004).It is well documented that the measurement of Customer

satisfaction regarding the service quality of firms is a necessary means by which organizations delve into the minds of its customers for useful feedback that could form the basis for effective marketing strategy

2.3.2 Customer satisfaction in internet banking context

Since firms exist to satisfy customers by meeting their requirements, it is crucial for banks that offer internet banking services to periodically and consistently measure the satisfaction of their customers As customers use the banking internet services, it might be that they are not satisfied, to some extent, with certain dimensions of the service quality

To obtain approval for the application of new information technologies on the market, a lot of research and survey was made, along with making many different models to identify research the factor or factors that influence the acceptance of customers By considered online banking is a new technological advances (Lin and Lee, 2005), research

on the acceptance of new technological advances can be used to study the acceptance of this service In fact, there are several theoretical approaches have been used to study and identify the factors affecting the acceptance and use of new information technology

(Venkatesh et al, 2003) One of the models used in the study of popular acceptance of

each individual technology TAM model (Davis, 1989), with the proposed two factors can

be used to predict behavior the customer for the use of new technologies, and thereby affect the attitude of acceptance directly using this technology is the ease of use and perceived usefulness This model is derived from the theory of rational action (Theory of Reasoned Action - TRA) (Fisbein and Ajzen, 1975), theory of planned behavior (Theory

of Planned Behavior - TPB) (Ajzen, 1985)

Satisfaction with online service has been studied extensively by manyauthors since the late 1990s (McHaney and Cronan, 1998; Kuo and Wu, 2008) Sheng and Liu (2010) and Kuo and Wu (2008) confirm that improved user satisfaction with this type of service favours future purchase intention and increased loyalty (Eid, 2011) However, in the financial sector, the study of online satisfaction as an element of consumer decision-making behaviour in virtual environments has only recently attracted attention in

marketing research (Lassala et al., 2010) Within the context of e-banking, Mattila (2001)

conceded that customer satisfaction is a key to success in internet banking and banks use

different media to customize products and services to fit customers’ needs Research into the adoption and use of e-banking services has grown in many parts of the world, but the centre of attention has been largely on determinants of online banking adoption, not on

user satisfaction (Pikkarainen et al., 2006) Riquelme et al.(2009) demonstrated that

satisfaction with electronic banking is directly related to the services that an entity offers

through this channel Casalo´et al.(2008) showed that satisfaction with previous

interactions with the bank’s web site had a positive effect on customer loyalty and positive word-of-mouth (WOM)

In addition, in response to the strategic changes that the financial sector is undergoing, some recent authors have approached the study of electronic banking based

on the antecedents of adoption by users In this sense, Yoon (2010) verifies that design, speed, security, information content, and customer service have a significant influence on customer satisfaction with electronic banking This paper focuses only on the direct influence of these constructs on satisfaction without considering the relation of the constructs with each other Further, Poon (2008) states that antecedents of user satisfaction with electronic banking include accessibility, convenience, design and content However, this research does not provide an explicit model that includes the satisfaction construct Finally, Ahmad and Al-Zu’bi (2011) state that accessibility, comfort, content, design and speed, among others aspects, determine the level of user satisfaction, though this paper does not focus on analysing the role of these constructs as direct determinants of satisfaction

2.3.3 Impact of overall internet banking service quality oncustomer

satisfaction in E-banking context

Johnson et al (2008) also illustrate that the influence of various dissatisfied such as

inefficiency, chaos, incompetence and isolation on online banking customer satisfaction is mediated by consumer performance ambiguity and consumer trust in the technology Thus, in order to maintain and expand their customer base, it is critical for banks to understand the criteria consumers use to evaluate internet banking services and how these impact on their perceptions of overall internet banking service quality, and satisfaction with e-service and banking overall This leads to the relationship between service quality and satisfaction In consumer satisfaction/dissatisfaction literature, expectation – disconfirmation has been given attention where disconfirmation refers to the difference

between prepurchase expectations and perceptions of postpurchase (Peter and Olson, 1990) There are two types of disconfirmation: negative disconfirmation and positive disconfirmation Negative disconfirmation occurs when product performance is less than expected, hence consumers are more likely to be dissatisfied, and positive disconfirmation occurs when product performance is better than expected, which is more likely to result in satisfaction

Zha, Ju and Wang (2006) showed in their research that dimensions of e-service quality are strongly predictive of customer satisfaction and trust Service quality and satisfaction, though the two concepts are different but they have closely related to each

other in the study about services (Parasuraman et al.,1988) The previous studies have

shown that service quality is the cause of satisfaction (Cronin and Taylor, 1992) The reason is related to the service quality delivery and satisfaction is only evaluated after using the service If the quality is improved but not based on the needs of the customer,the customers won't never satisfied with that service Therefore, when using the service, if customers perceive high quality service, then they will be satisfied with the service Conversely, if customers perceive low quality services, the dissatisfaction will appear There appears to be a consensus emerging that satisfaction refers to the outcome of individual service transactions and the overall service encounter, whereas service quality

is the customer’s overall impression of the relative inferiority/superiority of the organisation and its services (Johnston, 1995) Numerous studies have shown that service quality is positively related to customers’ satisfaction in an online environment (Han and Baek, 2004; Yang and Fang, 2004) Intuitively, the more positive customers’ perception

of online service quality, the better their overall satisfaction with the bank is likely to be The strength of this relationship depends on the weight given by customers to overall internet banking service quality relative to other attributes of the bank On this basis, we have the following H2 hypothesis :

H2: Overall Internet Banking Service quality is positively related to Customer satisfaction in E-banking context

2.4 Theoretical model and hypothesis

Figure1:Themodelof research

Summary:

Although there are many factors that affect to overall internet banking service quality and customer satisfaction but the study focuses in online information system quality including six dimensions: ease of use, accuracy, security, contents, timeliness, and aesthetics Research methodology and analysis result about the influencing of these dimensions will be conducted in chapter 3 and 4

CHAPTER 3: RESEARCH METHODOLOGY

This chapter on Methodology describes the chosen sampling technique, the way the data for the study has been collected and the statistical techniques used to analyze the data In addition, the issue of the reliability and validity of the presented study is discussed

3.1 Research Process

Qualitative research is found appropriate for discovery, exploring a new area, developing hypothesis and qualitative data are useful when “one needs to supplement, validate, explain, illuminate or reinterpret quantitative data gathered from the same

setting” (Amaratunga et al., 2002, p.22)

Quantitative research approach is based on the development of testable hypothesis and theory which can be generalized across settings Quantitative research is defined as

“a systematic investigation of social phenomenon via statistical, mathematical or computational techniques” (Given, 2008, p.16)

The research procedure is implemented through a combination between qualitative research and quantitative research In qualitative research, the purpose is to clarify the concepts and interpret the items in measurement scales into dimensions of online information system context based on the standpoint of customer using internet banking services Through the previous relevant researches, the questionnaire was built then running the pilot test for checking the efficiency and the meaning of the questions The pilot test was purposed to explore and define the relevant items and building a completed questionnaire So measurement scales are modified before being employedfor main survey in quantitative research

Figure2:Themodelof researchprocess

3.2 Measurement Scales

3.2.1 Measurement of online information systems quality dimensions

3.2.1.1 Measurement of aesthetic

Threeitemsweretakentomeasure“ aesthetic”based on Jun and Cai (2001), Michel et

al (2008 ), Cao (2005) Measurement scaleof the web’s aesthetic are:

Table 3.1: Measurementof aesthetics

Website was designed to help you identify almost internet

banking services

AES1

Website’s interface is spectacular, attractive AES2

Simple designment of website help you make transactions

quickly

AES3

Thisscalefocusedonthecustomer’semotiononperformance of internet banking’s

Reliability analysis Final questionnaire

Research model

Draft questionnaire

Pilot study (n=11)

Main survey (n=207) Literature review

EFA Regression

analysis

Result

website The performance of website including: interface of website, images and symbols, arrangemet images and symbols, conduct for using

3.2.1.2 Measurement of timeliness

Thereitemsweretakentomeasure“timeliness”basedon Cao (2005); Doll and

Torkzadeh (1988), Jun and Cai (2001), Michel et al.(2008), (Goi, 2005) Measurement

Time to log in internet banking is short TIM2

Time to get result of transaction is short TIM3

This scale list of timeline of events which the custommers spent on using internet banking service This scale reflected three substance of the timeliness: time to fix the error transactions, time to log in and time to get result

3.2.1.3 Measurement of contents

Fouritemsweretakentomeasure “content” based on Cao (2005); Doll and Torkzadeh

(1988), Jun and Cai (2001), Michel et al.(2008 ), Measurement scale of the content was

below:

Table 3.3: Measurementofcontents

Website show all information about services of

internet banking clearly and easy to understand

CON1

You can interrogate all your personal information

and transaction information on website

CON2

Functions of website satisfied almosts your needs CON3

New services of internet banking were updated on

website regularly

CON4

Thisscalefocused ontheinformation which internet baning’s website contain and

supply to custommers The cuscommers can find the informations about internet banking’s service as well as their personal information and financial transaction informations Custommers can find the information at any time without pay any free

3.2.1.4 Measurement of ease of use

Fouritemsweretaken to measure “ease of use” based on the study of Doll and

Torkzadeh (1988); Jun and Cai (2001);Michel et al.(2008) Measurement scale of the

ease of use was below:

Table 3.4: Measurementof ease of use

You can use services of internet banking by many ways such as:

website or on mobile phone

USE1

It’s easy step to log in to internet banking website USE2

It’s simple to be supplied internet banking services by the banks USE3

It’s easy to identify and track utilities of internet banking

services

USE4

Thisscale measures the convenience in using internet banking The convenience

is essential condition to encourage the custommers use internet banking The more convenient in using internet banking the more custommers use it

3.2.1.5 Measurement of security

Threeitemsweretakentomeasure “security” based on Jun and Cai (2001); Michel et

al.(2008 ) Measurement scale of the security was below:

Table 3.5: Measurementof security

Your pesonal information and financial information are highly secured

when you using internet banking services

SEC3

important to all activities of the bank The banks are responsible for securing custommers’s information If custommer’s information is disclosed but the cause is done by the bank, the bank must be responsible for the losts of custommers

3.2.1.6 Measurement of accuracy

Threeitemsweretakentomeasure “accuracy” based on thestudyof Doll and

Torkzadeh (1988); Michel et al.(2008); Goi (2005); Cao (2005) Measurement scale of

the accuracy was below:

Table 3.6: Measurementof accuracy

At your using process, it’s rarely to happen problem and

mistake of transmission

ACC1

Your transactions are handled accurately ACC2

Your personnal informations and transaction

informations are showed particularly and accurately

ACC3

Thisscale measures the accuracy in processing information of information technology system which controls activities of internet banking services

3.2.2 Measurement of overall internet banking service quality:

The measure “Overall internet banking service quality”werebasedonthestudyof

Jun and Cai (2001);Michel et al.(2008); Yang et al.(2004)

Table 3.7: Measurementof overall internet banking service quality

Quality of internet banking services

is very high

IBQ 1

Nowaday, the services of internet

banking satisfy your needs

IBQ 2

The bank’s online supports help you

avoid risks when the transaction problem

happen to internet banking system

IBQ 3

3.2.3 Measurementof customersatisfaction

Michel et al.(2008), Yang et al.(2004)

Table 3.8: Measurementof customersatisfaction

You are satisfied with internet banking services

which you using

SAT1

You prefer to use internet banking services to use

direct transactions at the bank

The questionnaires in survey was developed based on the research of others reputation author to give a scientific basis for the study The questionnaire contained two sections Section one contained personal data of respondents – gender, age, education, income and marital status with 5 items Section two contained mainly 20 items for measuring six dimensions ofonline information system quality; 3 items for measuring overall internet banking service quality and 3 items for measuringcustomer satisfaction

The questionnaire was designed based on independent back-translation method

An independent back-translation means that “an original translation would render items from the original version of the instrument to a second language, and a second translator—one not familiar with the instrument—would translate the instrument back into the original language” (Geisinger, 1994, p 306) The original language of this questionnaire is English and this research is done in Viet Nam, so two language of independent back-translation method are English and Vietnamese The author needs one person who is good at English and Vietnamese and well known about financial and banking sector First at all, the author translates the English original questionnaire into Vietnamese Then the other person translates the Vietnamese version which done by the author into English If the English original questionnaire and the English version

which done by the other person is same as, the questionnaire is accepted And it is draft questionnaire

3.4 Pilot study

The main purpose of pilot study is to test the questionnaire on a small sample of respondents by trying to identify and excluding potential problems (Malhotra, 2004) According to Malhotra (2004), the sample size of pilot study is small, which is around

15 to 30 respondents

A pilot study was carried out before sending out the questionnaires The pilot test

of this research involved distribution of questionnaire to 15 customers who are internet banking users, randomly chosen from a bank in HCM city, but four returned questionnaires were excluded due to incomplete data

The purpose of this pilot test was to check the wording of the questionnaire as well as exam whether there were some unclear questions that cause misunderstanding Fortunately, the survey questions was found to easily understand Almost no change about the wording and no questions were eliminated so we got the final questionnaire (see Appendix 1)

3.5 Main survey

3.5.1 Data collection method

Statistical data can be categorized as two parts: primary data and secondary data The source of primary data is directly from the investigation or questionnaire, which is gathered by the person for his/her own purpose Instead, the data collected by some other people or some agencies calls secondary data It means that “data collected by one is used by another” The most significant difference is that primary data is original while secondary data is not (Giri, 2008, 83) Obviously, primary data collection was suitable for this study

To collect data for this research, we use two methods: directly interview people using Internet banking services at banks and use “google drive” online

3.5.2 Sampling method

The thesis used the convenience sampling method which is a non-probability sampling technique where subjects are selected because of their convenient accessibility and proximity to the researcher In all forms of research, it would be ideal

to test the entire population, but in most cases, the population is just too large that it is

impossible to include every individual This is the reason why most researchers rely on

sampling techniques like convenience sampling, the most common of all sampling

techniques Many researchers prefer this sampling technique because it is fast,

inexpensive, easy and the subjects are readily available

When using convenience sampling, it is necessary to describe how your sample

would differ from an ideal sample that was randomly selected It is also necessary to

describe the individuals who might be left out during the selection process or the

individuals who are overrepresented in the sample

So the first objective of the sampling for this thesis is the respondent who have to

use internet banking services Interviewees are internet banking users in the banks in

HCMC, if the answer of question 5 “Do you usually use Internet banking service?” was

“strongly disagree”, the interview would be canceled and that questionnaire not be

recorded

3.5.3 Sample size

AccordingtoHair(2006),inothertoensurethereliability oftheresearch,the samplesizerequired isn>=100andn>=5k(wherek=numberofvariables) In thisresearch,thenumberof variablesis 26,so theminimumsamplesizeis130

Ontheotherhand,TabachnickandFidell(2001)alsorecommendedthatthe

samplesizeneeded forrunningmultipleregression isn>50+8m(misequalto thenumberof

independentvariables).So, the minimumsamplesizeforthis researchis98

Basedontheabovecalculation,the research was conducted among 250 internet

banking customers using a comprehensive survey

thesamplesizesetforthisresearchwas207.To getthesamplesizeof 207,thetotalof

questionnaireswhichsendtocustomerswas 250forwhohas used internet banking

services.Afterreceiving

thecustomerreplies,therewere207formswhichwerefilledproperly

Table 3.9: The sample size Customer uses internet

banking services

Number of sample which was sent

Number of samples which was received

3.6 Data analysis techniques

All accepted questionnaire were reviewed for completion, coded and input the raw data in IBM SPSS Statistic version 16 The reliability and validity of measurement scales were evaluated by using Cronbach’s alpha and exploratory factor analysis (EFA) Then, multiple regression analysis is used to provide for interpreting the results of its

application from a managerial and statistical viewpoint (Hair et al., 2010) The list of

codified variables is shown in Appendix 2

3.6.1 Testing of reliability

Cronbach's alpha is an index of reliability associated with the variation accounted for by the true score of the "underlying construct." Construct is the hypothetical variable that is being measured (Hatcher, 1994).Alpha coefficient ranges in value from 0 to 1 and may be used to describe the reliability of factors extracted from dichotomous (that is, questions with two possible answers) and/or multi-point formatted questionnaires or scales (i.e., rating scale: 1 = poor, 5 = excellent) Generally, the researches consider an alpha of 0.7 as a minimum, although lower coefficient may be acceptable depending on the research objectives (Hair et al, 2006) George and Malley (2003) provide the following techniques show in table 3.10

Table 3.10: Cronbach’s alpha reliability coefficient

3.6.2 Exploratory factor analysis (EFA)

Exploratory factor analysis (EFA) is a statistical method used to uncover the underlying structure of a relatively large set of variables EFA is a technique within factor analysis whose overarching goal is to identify the underlying relationships between measured variables

Hair et al (1998), Lee and Hooley (2005) claimed that with samples of 300 or

more, a factor loading of the attribute higher than 0.3 is significant And with samples of

200, a factor loading of 0.4 or greater will take to indicate Therefore, the researchers must carefully consider the sample size for choosing significant factor loadings Moreover, factors with a total eigenvalue of 1 or greater will take into account; hence any factors with an eigenvalue of less than 1 are discounted (Lee and Hooley, 2005) Based

on these studies, any factors with eigenvalues greater than 1 would be retained And any factor loadings of 0.3 or higher on a factor are counted

3.6.3 Multiple regression analysis

Hair et al.(2010) claimed that there is the difference between the actual and

predicted values of dependent variable That means the random error will occur when predicting sample data It is called the residual (ε or e)

Based on these studies, the multiple regression formula will be

Y = a + β1X1 + β2X2 + … + βnXn + ε

Where in: Y: is the dependent variable

a: is constant