What are the factors influencing customer satisfaction at bank for investment and development of vietnam sai gon branch (BIDV sai gon)

This research will find out that Corporate image, Tangible, Staff conduct, Service quality, Price, Credibility, Customer interaction and Convenience are critical factors influenced custo

RESEARCH PROJECT

(BMBR5103)

WHAT ARE THE FACTORS INFLUENCING CUSTOMER SATISFACTION AT BANK FOR INVESTMENT AND DEVELOPMENT OF

(BIDV SAI GON) ?

STUDENT’S FULL NAME : LY TRONG NGUYEN

ADVISOR’S NAME & TITLE : Dr BUI PHI HUNG

January, 2017

Advisor’s assessment

Contents

CHAPTER 1: INTRODUCTION 5

1 Problem statement: 5

2 Research objective: 6

3 Research questions: 6

4 Scope and methodology of research: 6

CHAPTER 2: THEORETICAL FRAMEWORK 8

1 Customer satisfaction: 8

2 Service quality: 9

3 Service quality and customer satisfaction: 12

4 Price and the relationship between price and customer satisfaction: 13

5 Conceptual framework and hypotheses: 14

CHAPTER 3: RESEARCH DESIGN 17

1 Research methodology: 17

2 Data collection method: 17

3 Qualitative research: 17

4 Population and sample: 19

5 Sample size: 19

6 Analysis method: 20

7 Quantitative research: 20

CHAPTER 4: EMPIRICAL RESULTS AND DISCUSSION 24

1 Determinant of customer expectations: 24

2 The factors affecting customer satisfaction: 25

2.1 Service quality: 25

2.2 Price competitiveness: 26

2.3 Corporate image : 26

2.4 Customer satisfaction: 27

3 Analysis of measurement scales: 27

3.1 Cronbach’s alpha 27

3.2 Exploratory Factor Analysis (EFA): 32

3.3 Pearson Correlation: 39

3.4 Multiple Linear Regression: 43

3.5 Discussion: 50

CHAPTER 5: BIDV SAI GON OVERVIEW 51

1 BIDV’s introduction: 51

2 B IDV Sai Gon’s introduction: 51

CHAPTER 6: CONCLUSION, RECOMMENDATION 54

1 Conclusion: 54

2 Recommendation: 54

REFERENCES: 56

APPENDIX 1 58

QUESTIONNAIRE 58

CUSTOMER SURVEY FORM 58

Abstract:

The main objective of this study is to identify all the main factors that influence the customer satisfaction in banking at the present contemporary global and highly competitive economy This research will find out that Corporate image, Tangible, Staff conduct, Service quality, Price, Credibility, Customer interaction and Convenience are critical factors influenced customer satisfaction with Corporate image, Tangible, Staff conduct and Service quality were four hypotheses that had the biggest influence on business customer satisfaction

CHAPTER 1: INTRODUCTION

1 Problem statement:

Nowadays the trend of globalization, international and area economic integration is rapidly developing along with the development of scientific technology and the market opening Service quality, service charges, perceived value and customer satisfaction are the key sources of success in any service factory (Olorunniwo and Hsu, 2006) For many years customer satisfaction has been a major goal of business organizations, since it has

Albinsson, 2004)

Customer’s satisfaction have strong influence on the efficiency and financial

performance of banks (Al-Hawari and Ward, 2006) Customer is factor that decides the

develop Business strategy focuses on consumers is becoming the most important business strategy Collaboration with customers in business, attracting new customers and strengthening existing customers is becoming an effective business tool with a small amount of additional cost but provides high effective business results How to bring the best satisfaction to customers always is the problem that banks have to do with all their abilities

Furthermore, customer satisfaction will be useful for creating customer loyalty which is necessary to maintain regular operations of the bank The improvement of service quality, perceived value, and satisfaction ensure customer loyalty (Kuo et al., 2009; Lai et al., 2009; Wu and Liang, 2009) However, in competition, the creation of customer loyalty

is not sure that customer will stick with bank for long term Banks need to be proactive in the maintenance and development of relationships between customers and banks

Therefore, study customer satisfaction in banking sector is an important work, has

to be done regularly and continuously to be able to respond promptly to the changes in customer demand, make them satisfy when using the services and products of bank

2 Research objective:

- Investigate the factors affecting customer satisfaction

- Recommend solutions to improve customer satisfaction to BIDV Sai Gon’s

services and products

- The research project on the factors influencing the customer satisfaction at the

- The research project is based on primary data and secondary from 2012 to 2014, focusing primarily on the factors related to customer satisfaction for banking product and service quality at BIDV Sai Gon

- Subjects of study are business customers, not individual customers

4.2 Limitation of research:

- Subjects of study are business customers with its own characteristics on demand service, criteria for evaluating service quality and perceiving price services to business customers, so research results can not response used simultaneously to all customers

- Research scope limited to customers using the service at BIDV Sai Gon in Ho Chi Minh city area should not be assessed on overall customer groups in different local and potential customers may not use bank service

- Study looks at just the time and number of bank customers use, not understanding customer satisfaction in relation to business, financial resources and ethnic factors

4.3 Structure of thesis:

- Chapter 1: Introduction

- Chapter 2: Theoretical framework

- Chapter 3: Research design

- Chapter 4: Empirical result and discussion

- Chapter 5: BIDV Sai Gon Overview

- Chapter 6: Conclusion and recommendation

CHAPTER 2: THEORETICAL FRAMEWORK

1 Customer satisfaction:

products or services meets the requirements of the customer as an end user

Pairot (2008) defined Customers satisfaction as the company's ability to fulfill the business, emotional, and psychological needs of its customers In the words of Oliver

(1981, p.27), customer satisfaction is “the summary psychological state resulting when the emotion surrounding disconfirmed expectations is coupled with the consumer s prior feelings about the consumption experience.” Customer satisfaction has also been defined

by Hunt (1977, p.459) as “an evaluation rendered that the (consumption) experience was at least as good as it was supposed to be.” Furthermore, Engel and Blackwell (1982, p.501) have opined it to be “an evaluation that the chosen alternative is consistent with prior beliefs with respect to that alternative.” It is a well-researched fact that investments in

customer satisfaction, customer relationships and service quality leads to profitability and market share Rust and Zahorik (1993) Put differently, customer satisfaction leads to customer loyalty and this also leads to profitability Hallowell (1996) If customers are satisfied with a particular high quality service offering after its use, then they can be expected to engage in repeat purchase and even try line extensions and thus market share can be improved

Levesque and McDougall (1996) have empirically confirmed and reinforced the notion that consistent poor customer experience leads to a decrease in the levels of customer satisfaction and the chances of further willingness to recommend the service (i.e., word-of-mouth advertising or referrals) is lessened Previous researches have shown strong linkages between service quality dimensions and overall customer satisfaction (Anderson and Sullivan (1993)) Service quality is accepted as one of the basic factors of customer satisfaction (Parasuraman et al., (1994)) However, there is much debate whether customer satisfaction is a precursor of service quality judgements (Parasuraman et al., (1985) and Bitner et al., (1990)) or the other way round (Anderson and Sullivan, (1993)) Definitive analysis has showed that service quality cannot be divorced from the concept of customer satisfaction Recent studies have shown that satisfaction is influenced by not only perceptions of service quality but also by perceptions of product quality, and pricing

example, customer satisfaction with retail banking will be a broader concept and will certainly be influenced by perceptions of service quality but will also include perceptions

of product quality (such as variety of deposit options available to customers), price of the products(i.e., charges charged by the bank or rates offered by the banks on various

deposits), personal factors such as the consumer s emotional state, and even uncontrollable

situational factors such as weather conditions and experiences in conveying to and from the bank

2 Service quality:

2.1 Concept of service quality

For a long time, many researchers have tried to define and measure service quality For example, Lehtinen & Lehtinen (1982) mentioned that the quality of service must be judged on two aspects, (1) the process of service provider and (2) the results of the service Grönroos (1984) also suggested that the two components of service quality are (1) technical quality, which is what customers receive and (2) functional quality, which interpret how services are provided According to Hubert (1995), before using the service, customers have formed a "script" on that service When screenplays of customers and suppliers are not identical, customers will feel dissatisfied Cronin and Tailor (1992) suggested that customer satisfaction should be reviewed in short time, and the service quality should be reviewed by the attitudes of customers for that service in a long time

However, when it comes to service quality, we can not fail to mention the huge contribution of Parasuraman et al., (1988, 1991) Parasuraman et al., (1988, page 17)

defines service quality as the difference between the consumers’ expectations of services and their perceptions of the service’s outcome

2.2 Service quality measurement

2.2.1 SERVQUAL Model

Service quality is measured by a variety of factors and accurately identifying these elements depends on the nature of services and research environment There are many authors have studied this issue, but the most popular and best known is the service

quality’s review criteria of Parasuraman et al

In 1985, Parasuraman et al gave 10 decisive factors of service quality which are listed below:

1 Accessibility

10 Understanding the customers

In 1988, these authors initiated and used the qualitative and quantitative research to

build and test the scale of service quality’s components (SERVQUAL scale) SERVQUAL

scale was adjusted and tested in many different types of services SERVQUAL model was built based on the perceived standpoint of service quality as a comparison between the expected values/expectations and value which customer received SERVQUAL consider two aspects of service quality is service result and service process which were studied through 22 scales of 5 criteria: reliability, responsiveness, assurance, tangibles and empathy

a Reliability

Trust is the ability to provide service accurately, on time and reputably This requires consistency in the implementation of services and commitment as well as keeps the promise to the customer

b Responsiveness

This criterion measures the ability to solve problems quickly, handle complaints effectively, ready to help customers and satisfy the requirements of customers In other words, responsiveness is the feedback from service providers with what customers want

c Assurance

This is the factor that makes up trust for customers which is perceived through good Service quality service, technical knowledge, courtesy and social skills So that customers will feel assurance when using service of provider

d Tangibles

Tangibles are reflection outside of the physical facilities, equipment, machinery,

staffs’demeanour, documentation, manuals and information systems of service provider In

general, what all customers are directly visible to the eye and the senses can impact factors

Two authors Cronin and Taylor (1992) have adjusted SERVQUAL scale into

SERVPERF scale They said that the evaluation of customers’ perceive for services is

more important than the evaluation of customer expectations SERVPERF scale has only

received from providers

2.2.3 FSQ and TSQ Model

According to Grönroos (1984), service quality is reviewed based on two criteria: functional service quality (FSQ) and technical service quality (TSQ) and service quality is strongly affected by corporate image As a result, Grönroos gave 3 factors affecting service quality are functional service quality, technical service quality and corporate image (called FTSQ Model)

a Technical service quality

It is the quality which customers received through access to providers and is perceived important for customers In other words, technical service quality is the result of the interaction between providers and customers in which enterprises provider service and the customers receive this service There are 5 criteria to evaluate this factor:

 Problem-solving skills

 Service quality Skills

 Operational proficiency

 Modern equipment

 Information storage system

b Functional service quality

Functional service quality represents the service implementation process and

functional service quality plays a more important role which is represented through 7 following criteria:

customers’ evaluation about service quality, product value and their satisfaction

Moreover, corporate image make customers more trust enterprises and become loyal customers of enterprises (Andreassen and Lindestand, 1998) As a result, the corporate image has an impact on service quality and customer satisfaction It is noteworthy that, customers who often use the services of the enterprises will have more accurate feeling than other customers (Johnson, Fornell, Andreassen, Lervik and Cha, 2001)

Corporate image is seen as filter device to help the relationship between customers and enterprises better and more sustainable Additionally, customers evaluate corporate image good or bad through their feeling for enterprises and compare corporate image with other competitors However, the influence level, more or less, depends on the specific enterprise

3 Service quality and customer satisfaction:

According to Spreng and Mackory (1996), service quality and customer satisfaction are inarguably the two concepts that are so difficult to explain in marketing theory and

practice In 2001, Yang argued that when comparing the performance of a product or service with their expectations before purchasing, if it exceeds the expectation, the satisfaction of customers would be increased However, four years later, Saha and Zhoa

(2005) gave out a new definition of satisfaction like “a collective outcome of perception,

evaluation and psychological reactions to the consumption experience with a product or

service”

The appraisal-emotional response-coping attitudinal framework of Bagozzi (1988) thought that service quality is a construct oriented to awareness, while satisfaction is an emotional construct It is the reason that many researchers suggested service quality is an antecedent of satisfaction After that, in 2003, Woldfinbarger and Gilly discovered a positive relationship between overall service quality and satisfaction in case of fixed web retailing; also, Montoya-Weiss et al found out an evidence to prove the relationship between service quality and satisfaction by analyzing the determinants of online channel preference for a multichannel service provider

4 Price and the relationship between price and customer satisfaction:

Price which is showing form by the currency of goods value and services is determined based on the value of the usage and feeling of the customers on products, or services that they use Customer does not have to buy products and services with the highest quality; they will buy these products and services that make them satisfaction most Therefore, factors such as customer perception of price and cost (usage cost) will not affect the quality of services, but will impact on customer satisfaction (Cronin and Taylor, 1992)

In many previous studies on customer satisfaction, the impact of price factor received little attention compared to other criteria (Voss et al., 1998) However, with the

increasingly strong competition of the market and changes in customers’ cognizance on

products and services, researchers have determined that price and customer satisfaction have strong relationship (Patterson et al., 1997) Therefore, if not mention to this factor, the study of customer satisfaction will lack accuracy

When buying products or services, customers would have to pay a cost to reclaim the usage value which they need As a result, the cost then is called exchange price in order

to have desired value from products and services Only when the perceived service quality which customers get is more than usage cost, price will be considered competitiveness and customers will be satisfied Conversely, customers will dissatisfy because they feel that

they have to pay more than what they receive and the price in this case will impact negatively on customer satisfaction

This is the relationship among price, value and perceived price However, perceived price is the factor affecting customer satisfaction Maybe the price is more than the received value, but customers feel reasonable, they still satisfy and vice versa In the study of the relationship between perceived price and customer satisfaction, Varki and Colgate (2001) also demonstrated that these two factors interact with each other and depend on the customer's sensitivity to price as well as the relationship between the service user and the service provider In addition, to evaluate the impact of pricing factors to customer satisfaction, we need to consider more fully in the three following aspects (Maythew and Winer, 1982):

 Price compared with quality

 Price compared with competitors

 Price compared with customers’ expectations

Therefore, when considering the impact of price on customer satisfaction we need

to recognize more fully that the price here include the costs and opportunity costs to get products and services as well as correlation of the price with the aspects mentioned above Within the scope of this research, the price factor is considered as the competitiveness of perceived price If customers perceive the higher competitiveness of price, the more they satisfy and vice versa

5 Conceptual framework and hypotheses:

5.1 Theorical model

SERVQUAL is popular model and widely used in marketing research This model

is useful in generalizing criteria that measure the service quality but it has many disadvantages (Babakus & Boller, 1992; Brown et al., 1993; Buttle, 1996; Genestre & Herbig, 1996; Gilmore & Carson, 1992; Robinson, 1999; Hemmasi et al., 1994) and, if it is applied strictly to measure the quality of banking services, it will not appropriate in the following aspects:

 Measurement criteria are general

 Focus more on measuring providing process than services implementation

results

 Comparation the distance between quality expectations and perceived quality

is difficult to determine because of considering many scales and not be determined

directly based on actual service performance

Therefore, measurement criteria of SERVQUAL can not be applied in all areas It must be adjusted to suit with each case study to ensure high accuracy SERVPERF model

is based on SERVQUAL but more focus on quality of service performance and also includes 5 criteria as mentioned above (reliability, responsiveness, assurance, tangibles and empathy) So, it is also not selected as a research model

For research on customer satisfaction in the banking sector, model of technical quality and functional quality of Grönroos is more affordable (Lassar et al., 1998), by the following reasons:

Firstly, FTQS model focuses on two key aspects of service quality is the functional quality (how enterprise provide its service) and technical quality (which services enterprise provide) Bank is sector which requires communication, constant communication between customers and bank employees so the implementation process would be particularly important for customers in evaluating service quality Meanwhile SERVQUAL model did not analysis how bank provide service and which service bank provides

Secondly, as banks also offer similar services and fewer errors occur, the customer will pay more attention to the process of service implementing to evaluate service quality

of bank For the deployment of advanced services for customers, functional quality factor becomes increasingly more important because it affirms the level of services provider and marks differences between enterprise and other competitors

Thirdly, some measurement criteria of SERVQUAL model are also considered in FTSQ model through research scales and useful for analyzing service quality feasibly and more affordably

From the above advantages and disadvantages, author will refer FTSQ and SERVQUAL model for this research When bulding up the model, the authors still consider the key factor impact on customer satisfaction is the service quality (6 factors: Convenience, Tangibles, Staff Conduct, Service Portfolios, Customer Interaction, Credibility) followed by the Price Competitiveness and final is Corporate Image

Figure 1: Theorical model

5.2 Hypotheses:

- Hypothesis 1: Convenience has positive impact on customer satisfaction

- Hypothesis 2: Tangibles has positive impact on customer satisfaction

- Hypothesis 3: Staff conduct has positive impact on customer satisfaction

- Hypothesis 4: Service portfolio has positive impact on customer satisfaction

- Hypothesis 5: Customer interaction has positive impact on customer satisfaction

- Hypothesis 6: Credibility has positive impact on customer satisfaction

- Hypothesis 7: Price competitiveness has positive impact on customer satisfaction

- Hypothesis 8: Corporate image has positive impact on customer satisfaction

CHAPTER 3: RESEARCH DESIGN

in an objective manner and synchronized to achieve precise and practical research results

2 Data collection method:

a. Primary source:

- Interviews, discussions with staff/banking leaders to better understand the viewpoints and plans as well as their review about research problems

business customers through transaction offices of BIDV Sai Gon in Ho Chi Minh city

b. Secondary source:

- Secondary information sources will be collected through:

- Banking magazines, newspapers

- Marketing magazines, newspapers

- Research articles about services and service quality

- Activity reports of BIDV Sai Gon

- Internet

3 Qualitative research:

This is a preliminary study to screen the variables included in the model study, examination of the scale used, refer to the comments from banks and customers about research problems, thereby building scale studies included in the model and set the questionnaire

First, the author will prepare some questions for discussion, exchange of staff and bank management with content focused on research issues:

- Bank assessment of satisfied customers how to banking products and services

- Bank of comments about service quality model in banking sector

- Bank has comments about the service quality benchmarks

- Bank has an opinion about the expectations of customers in the future

- The scale of customer satisfaction is not fair presentation

- Banks use the scale to measure the level of customer satisfaction

- How to bring satisfaction to our customers

On the client side, the authors randomly selected 10 customers to participate in direct interview, which recorded their opinions about banking services and their expectations for the bank

After conducting qualitative research, 8 factors of the model study of customer satisfaction can be used for further research is quantitative study, 3 criterias for measuring the level of customer satisfaction

2 Wide agent network

3 Easy and quick transaction procedure

2 Attractive posters, brochures, leaflet, handouts…

3 Clear and easy-understood transaction documents

4 Well dressed and Service quality

2 Well-trained with high competence

3 Accurate and timely service implementation

4 Always available for the services

5 Polite and consistently courteous with customers

Credibility 1 Ensure customers’ information and transaction

confidentially

2 Regular and timely transaction statement delivery

3 Right service implementation at the first time

2 Competitive interest rate

3 Reasonable transaction fees

2 Having great innovation and social contribution

3 Launching effecttive and efficient marketing activities

4 Having right stratefy for sustainable development

2 Ability to meet the customers’ demands

3 Continue using services

4 Population and sample:

All of business customer at BIDV Sai Gon are the population of this study

5 Sample size:

According to DeCoster, J (2004), minimum sample size used in statistic analysis should be is equal to or greater than five times of the number of variables, but not less than

100 to generate reliable results:

n >= 100 and n >= 5k (where k is the number of variables)

This research has 28 variables, as a result, the minimum sample size required to run EFA in this research is:

n = 5 x 28 = 140

Otherwise, Tabachnick & Fidell (2001) stated that the minimum sample size in case of multiple regression should be:

n = 50+8m (where m is the number of independent variables)

Apply this formula for 8 independent variables of this research, we have the minimum sample size for multiple regression as follow:

n = 50 + 8 x 8 = 114

Summarily, with 28 variables and 8 independent variables, this research needs 140

samples at least to take EFA and regression Hence, 200 surveys were distributed to target

respondents to take the data for analysis

6 Analysis method:

Collected data will be processed through using SPSS version 16.0 analytics tool

7 Quantitative research:

7.1 Objective:

Quantitative research was conducted to test the scale of the research model This is

a detailed analysis of collected data through questionnaires which are sent to the client to determine the logical correlation of these factors together and then give specific results of these research

7.2 Process research:

a Construction questionnaire

b Determine the number of samples needed for research

c Send to customer surveys

d Contact the client to monitor the response

e Get feedback from customers

f Data processing through the use of SPSS analysis tools in the following order:

 Descriptive Analysis

 Analysis of the reliability of the scales

 Factors analysis

 Building integrated research model

 Testing of the model through Pearson analysis, regression analysis and

ANOVA analysis

7.3 Result:

One of the forms of measurement which is the most used in quantitative research is Rennis Likert scale Rennis Likert introduced scale with 5 levels from 1-5 to assess to what extent the respondents Normally, we will use the multi-aspect scale and simple aspect scale to set up scales and build up questionnaires

There are 200 questionnaires sent to business customers selected on the basis of data banks and regional evenly distributed in the following forms: email (50) and for arrivals transactions at the bank (150) with the support of the department: customer service, payment card service, international payments, individual customer management

There were 154 questionnaires were collected (32 votes by mail, 122 votes from transaction counters) with response rates of 77%, while 8 votes were rejected due to invalid Therefore, the remaining number of samples to be analyzed 146 votes

Research model of this thesis consists of 8 independent variables of 28 variables Therefore, the sample size required is 140 or more The number of samples used in the study was 146 samples that should be representative of the sample is guaranteed to research performance

Thus, after the number of samples are colllected, the author will use the SPSS 16 to analyse the data and the variables will be encoded in the table below:

Convenience (STT)

Tangibles (SHH)

Staff conduct (PCPV)

11 PCPV04 Always available for the services

Service portfolios (DMSP)

Customer interaction (CSKH)

Credibility (STC)

Price competitiveness (TCTG)

Corporate image (HADN)

Customer satisfaction (SHL)

29 SHL01 Satisfaction level of customers with the service quality

7.4 Questionnaire design:

a. Objectives:

- Study customer’expectation for banking service at BIDV Sai Gon

- Scale customer satisfaction

- Test the factors influencing customer satisfaction

- Determine correlation between time of using banking service and number of transaction bank and customer satisfaction

b. Structure of questionnaire:

Questionnaire is designed by 5 parts with 02 scales of customer information, 10 scales

of customer expectation, 28 scales of factors affecting customer satisfaction, 3 scales of

determining level of customer satisfaction and customer recommendation (Appendix 1)

- Part 1: Customer information

+ Question 1: Time of using banking service

+ Question 2: Number of transaction bank

- Part 2: Customer expectation

- Part 3: Factors affecting customer satisfaction

- Part 4: Customer satisfaction level

+ Question 1: Overal banking service

+ Question 2: Capacity to meet customer demandes

+ Question 3: Continue to use banking service

- Part 5: Customer recommendation

CHAPTER 4: EMPIRICAL RESULTS AND DISCUSSION

1 Determinant of customer expectations:

Result in Figure 4.1 shown 3 criteria that customers expect most of the banks in order: STT03_Easy and quick transaction procedure (Mean: 1.81); PCPV01_Great

transaction fees (Mean: 2.97) When data analysed , the most favorite expectations is measured on a scale from 1 to 3, and the others are 4 The results (Figure 4.1) shows that most customers expect from the bank is the Service quality service and reasonable prices

as well as the general trend of the market that is reached will now occupy the position certain competitive

Figure 4.1: Descriptive Statistics Of Customer Expectation

2 The factors affecting customer satisfaction:

2.1 Service quality:

As shown in Figure 4.2.1, in 21 variables of service quality, there are 6 variables

(Mean: 4.01); STT03_ Easy and quick transaction procedure (Mean: 3.95);

transaction confidentially (Mean: 3.86), DMSP01_ Rich and diversified service portfolio

(Mean: 3.82)

However, in Figure 4.2.1 also showns the level of customer agrees are not the same

in the observed variables Five variables agreed at the lowest mean score: SHH01_ Modern equipment and technology (Mean: 3.18); STT01_Convenient transaction location (Mean: 3.24); SHH03_Clear and easy-understood transaction documents (Mean: 3.26); SHH04_ Well dressed and Service quality (Mean: 3.27); and STT02_ Wide agent network (Mean: 3.40)

Figure 4.2.1: Descriptive Statistics Of Service Quality

Figure 4.2.2: Descriptive Statistics Of Price Competitiveness

innovation and social contribution (Mean: 3.51)

Figure 4.2.3: Descriptive Statistics Of Corporate Image

Survey results (Figure 4.2.4) shows that the level of customer satisfaction for banks

is quite high, in which three variables observed scale of customer satisfaction are Mean > 3.9 said they would continue to use banking services in the future This is a good sign for the performance and reputation of the bank for many years It also requires banks need more efforts to further improve the quality of service and keeping customer satisfaction

Figure 4.2.4: Descriptive Statistics Of Customer Satisfaction

Cronbach’s alpha reliability analysis method was used to test the reliability of the

scale is equal to or bigger than 0.7 (Pallant 2005), in exploratory research it may decrease

to 0.6 (Robinson/Shaver/Wrightsman 1991) Besides, those items which have the value of Corrected Item-to-total Correlation less than 0.3 could be discarded in order to improve reliability level of the measurement scale

3.1.1 Convenience (STT):

About Convenience factor (STT), the observed variables (Figure ) have a correlation coefficient of total variable fit> 0.3 and Alpha coefficient> 0.6 (.687) to meet the requirements of reliability can be put into factor analysis

Scale Variance if Item Deleted

Corrected Total Correlation

Corrected Total Correlation

About factor Staff conduct (PCPV), the observed variables are the total variable

be used to analyze factors

Corrected Total Correlation

About factor Service portfolios (DMSP), the observed variables are the total

Service portfolios could not be used to analyze factors

Corrected Total Correlation

3.1.5 Customer interaction (CSKH)

About factor Customer interaction (CSKH), the observed variables are the total

interaction can be used to analyze factors

Scale Variance if Item Deleted

Corrected Total Correlation

About factor Credibility (CSKH), the observed variables are the total variable

used to analyze factors

Scale Variance if Item Deleted

Corrected Total Correlation

Item-Cronbach's Alpha if Item Deleted