Improving retail banking service of joint stock commercial bank for investment and development of vietnam (BIDV) ai saigon north branch

ese eeseeseeesseeseees ese teeeenseenensoes 30 4.4.3 Scale satisfaction and perceived quality of banking services Retail CUSfOrn€rS ...- 2 cà SH ng ng 31 4.5 Test the research model BSQ

EAE MLL OM LOLI PEI MERE DLE DE SEED MBSE LEME ER SL GRE LELENT BME SEE

ACKNOWLEDGMENT

On the very outset of this report, I would like to extend my sincere & heartfelt obligation towards all the personages who have helped me in this endeavor Without their active guidance, help, cooperation & encouragement, I would not have made headway in the project

I would like to express our sincere thanks to the Bank for BIDV at SaiGon Nroth Branch and colleagues for their support and help me to complete this study

I am extremely thankful and pay my gratitude to my faculty Dr Bui Phi Hung for his valuable guidance and support on completetion of this project in its

presently

I also acknowledge with a deep sense of reverence, my gratitude towards

my family, who has always supported me morally as well as economically

At last but no least gratitude goes to all of my friends who directly or

indirectly helped me to complete this project report

Any omission in this brief acknowledgement does not mean lack of gratitude

Thanks you

Mai Dinh Hoang

Advisor’s assessment

Advisor’s signature

DR BUI PHI HUNG

EXECUTIVE SUMMARY

In trending world today's, the developing countries guide people to use a daily transaction as a credit card, ATM card, transfer money online The daily transactions of consumers purchase goods at supermarkets, going to restaurants, shopping, taxi should use plastic cards instead of cash Moreover, the current BIDV

has to find the benefits of the development of retail banking market and has

continuously studied the plans déveloped this market Developing retail banking

market will has got fewer risks as in wholesale banking markets, however the

workload will increase a lot than Because every individual will has been taken cared as a wholesale customer As can be seen, Vietnam has ninety million inhabitants, if the BIDV will have ten percentage of ninety million people, equal to serve nine million customers, it seems be have nine million wholesale banking

customers Thus, the retail banking market will be extremely attractive market, no

less than the wholesale banking market

Moreover, the development of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) to 2018 will be focus to develop retail banking customers and increase quality effectively Besides, the strategy business plan is going to high quality services for customers better, and how to improve the quality of retail banking services in the Joint Stock Commercial Bank for Investment and Development of Vietnam - at Saigon North Branch It is essential to servers BIDV's customers and ensure the sustainable development of the bank

This thesis studies “Improving retail banking service of Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) at Saigon North Branch”

IS C n0- 0 2 1.4 Object and scope of the sfudy - LH TH HH KH kg 2 1.4.1 Subjects Research 0 ec 2

ID Vi lon nổ ố e 2

IS C0 ốo an 2 1.6 The meaning and application sfudy -. Ă- nen HH kh 3 1.7 TheSIS SÍTUCẨUTG Ăn HH HH TH HH TH HH HH TH 0g kg 3 0.0 040.).01-00/0:).9.0)00.3.8.4 402.1 5

2.1.1 Product - traditional retall S€TVIC©S ST HH HH HH HH nh khu 5 2.1.2 Product - Retail banking moderni1zation 55 «se nen rkreeere 6 VY/ÊN.C ó8 iu an - 6 2.2.1 The concept of retall banking S€FVIC€ cá SH HH HH HH ng 6 2.2.2 Characteristics of the retail banking S€TVIC€ - 5S SĂS SA 7

Và o0 chẽ 8 2.3.1 The concept of quality OŸ S€TVIC€ - Ăn HH TH HH kg kết 8 2.3.2 Features of the S€TVIC€ LH HH ng HH in 9

2.4 The relationship between service quality and custormner satisfaction 10

2.4.1 The concept of customer satiSÍaCtiOT - ST HH HH HH 10

2.4.2 The relationship between service quality and customer satisfaction 11

3.2.2 Build quality scale retail banking services BSQ eeheeee 19

3.2.2.1 Quality Scale Retail banking S€rVIC€S . - HH HH re 19 3.2.2.2 Scale satisfaction and perceived quality of retail banking customers 20 3.3 Design and Research Methods . - Ăn HH ng ke 20 3.3.1 oi an 21 3.3.1.1 Technique plays, group discussions 0.0.0.0 eeeeeeecereeeseesessesesssessaseseseneesens 21 3.3.1.2 Scale adjustment 0.0 ccccesceeseceeeteseesseesnseeseeseseseseessasensceeutseusiasesesoneaas 21 3.3.1.3 Designing the surVey qu€SfIOTTIAIT€ - - Ăn ng Hư kh 21 K0 6 22 3.3.2.1 Methods of collecting information and sample size TL HT ghe 22 3.3.2.2 The plan data analysis cece esceeeseeneeseceeesssseeesesnasceeeseessesenesssearentsees 23

CHAPTER IV: RESULTS, FINDINGS AND PRESENTATION OF DATA 24

4.2 Sample †€stlng -.-cc Ác HH TH nh HT HH ng 24 4.3 Rating scales with Cronbach's coefficient alpha reliabllify - .«« 26 4.3.1 Result analysis quality scale retail banking services modeled BSQ 26 4.3.2 Analytical results satisfaction scale and perceived

4.4 The rating scale using factor analysis to discover

4.4.1 Quality scale retail banking services based on the model BSQ 28

4.4.2 Adjust the research model was first time ese eeseeseeesseeseees ese teeeenseenensoes 30 4.4.3 Scale satisfaction and perceived quality of banking services Retail CUSfOrn€rS .- 2 cà SH ng ng 31 4.5 Test the research model BSQ by multiple regression analys1s 31

4.5.1 Considering the correlation matrix of variables ke 32 4.5.2 Multiple regression aniaÌySIS - sàng TH HT HH nhiệt 32 4.5.3 Adjust the 2nd research modelÌ - - - - - < s9 HH ngư 34 "9u nh ằe 35

CHAPTER V: DISCUSSION AND ANALYSIS OF FINDINGS 36

ho 36

5.2 Discussion of (ca na 36

5.2.1 Status of quality assurance elements of retail banking Co 0i89 0:6 36

1 nNN.'os nh ố 37

5.2.1.2 Valuation tangible and portfolio of products and S€TViC€S - 38

5.2.1.3 Reliable _— 38

5.2.1.4 Efficlent and s€CUT€ - sọ HH ng ng ng ch 39 5.2.2 Solutions to improve the quality of retail banking services at the BIDV North Saigon branch 8018 39

5.2.2.1 Solutions to improve aCC€ss[bi]Ify chưng re 39 5.2.2.2 Advanced soiutions and tangible valuation of product service 40

5.2.2.3 Advanced Solutions Reliable - . - - c9 ng nh 41 5.2.2.4 Solutions to improve efficiency and eNSULe cccccsesssestseeseseetseeseesnees 41 5.2.2.5 Risk COPITOÌ Q1 SH TT HS vn 42 5.3 COMCIUSION 42

Sẽ o8 on 43

2A Bìa 26 ố ố ẽ 43

6.3 (sốc con na 44

6.3.1 Completely the business management of retail banking 44

6.3.2 Improving the quality of Customer Care C€T€T - cành 44 6.3.3 Increasing investment for information technology and technology applications information on the prodUCf - 5Á 1k“ Hy HH HH ưn 44 6.3.4 Network develOpIeII G91 143 1H H2 HH HH KH HH HH HH 45 6.3.5 Human resource deVelopIeïi( c2 tưng H101 ke 45 SN Xu oán 45

>9 46

References list

Appendix

Appendix 1

Appendix 2

Appendix 3

Appendix 4

Appendix 5

Appendix 6

Appendix 7

Appendix 8

Appendix 9

LIST OF FORM

Form 2.1: SERVQUAL model — Five-distance service quality -‹ : 14 Form 2.2: Service quality model of GrÖnrO0S - cà cL.t2 121211111112 ngư 15 From 2.3: Model bank service quality BSQ Úc HH 021010114112 0 ru 17 Form 3.1 : Quality assessment model of retail banking services - 18 From 4.1: Adjusted model 1st assess the quality of retail banking services 30

Form 4.2: Adjusted model 2nd assess the quality of retail banking services 35

Table 2.8: Results of linear regression analysis multiples c <<<c+ 33

Table 2.9: Quality evaluation results of retail banking services at BIDV BSG 37

CHAPTER I: INTRODUCTION

1.1 Introduction

Commercial banks which have the most fundamental task of the bank, such

as raising capital and lending Moreover, commercial banks as a bridge between individuals and organizations, transfers free pretty cash to investment Commercial banking activities have a profit from collect free money and loan And then, it pays interest rates lower capital loan interest rates, the difference in interest rates is the bank's profits Activities of a commercial bank serving the needs of all classes of capital people, types of businesses and other organizations in society

To develop retail banking services, the bank needs to supply products and services to individual user individual, small and medium-sized businesses through a network of affiliates or customers have direct access to products, banking services via the media, electronics and telecommunications The bank's activities are mainly mobilized capital from all economic sectors and loans to solve the problem of consumption or production projects with small and medium scale Therefore, the retail banking services have a less risk and long-term profitability than the whole sale service of bank

This study aimed at specific research as below:

- Systemize basic theory of the business and retail banking activities of commercial banks

- Building a model of research quality relationship in the model BSQ services (Bank Service Quality) suitable for retail banking services in Vietnam

- Testing of the model assumptions and identify the components affecting customer satisfaction for the quality of retail banking services

- Assessment of the status of quality retail banking services of Commercial Bank for Investment and Development of Vietnam - North Saigon Branch

- Propose some solutions to enhance customer satisfaction when using the retail banking services to contribute to improving the competitiveness of the bank 1.3 Research Question:

In order to determine customer satisfaction on service quality of commercial banks in today and Commercial Bank of Investment and Development of Vietnam -

Saigon Branch North in particular, research projects answer the question:

How to improve the quality of banking services retail?

1.4.1 Subjects Research:

Quality retail banking services based on customer perceptions are using retail products and services in Commercial Bank for Investment and Development of Vietnam - North Saigon Branch

1.4.2 Scope of the study:

The scope of the research study was to investigate the clients have been using the services of retail banking Joint Stock Commercial Bank for Investment and Development of Vietnam - Saigon North Branch (BIDV BSG), Commercial Bank Asia (ACB) and other commercial banks in the province Ho Chi Minh City from 2015 to 2018

*% Academic studies: thesis was used mixed methods of quantitative and qualitative:

Qualitative research:

Thesis is including technical plays and group discussions with people who are using the services of retail banking at BSG BIDV, ACB, other commercial banks to explore, to adjust the scale of quality banking services retail Thereby, it is

building a preliminary questionnaire Moreover, it interviews to try 30 people to check the level of clarity of questionnaires, evaluation results with the correct

answer is not necessary to gather information

Quantitative research:

Additionly, it completes the survey questionnaire to conduct research to

expand the customer survey are using retail banking services in BSG BIDV, ACB, other commercial banks in the province Ho Chi Minh City Information collection

methods used in this study were interviewed directly in a questionnaire has been prepared Interview questionnaire included 31 variables built quality of service measurement, in which 28 variables measuring the quality of service and 3 variables measuring customer satisfaction (details presented in Chapter 3 of the building level)

This study summary and strengthen the knowledge base of the retail banking activities of a commercial bank, knowledge of service quality, reviews the relationship between service quality and customer satisfaction In other hand, construction quality evaluation model of retail banking services and offering

solutions that contribute to improving the quality of retail services, to help

customers feel satisfied when using banking services

Thesis structure designed six chapters Chapter 1- Introduction provides the foundation of the research with the identification of research questions and goals Chapter 2 - consider the theories and studies related to the extensive knowledge of

improving retail banking services of Bank BIDV BSG, providing a theoretical point

of the elements of banking services retail Chapter 3 - Research methodology thesis

to the right choice of philosophical research, methods, approaches and data

collection Chapter 4 - Data analysis / detection, based on the conceptual framework

and data collection, provided the experimental results Chapter 5 - Discussing the findings, analysis of the discussions to verify the hypothesis that search Finally, Chapter 6 Conclusions, summarizing the research with conclusions and recommendations to improve retail banking in Commercial Bank Branch Saigon BIDV

CHAPTER IL: LITERATURE REVIEW

2.1.1 Product - traditional retail services:

- Products - Services raise capital:

Capital mobilization is one of the major products and services and most importantly of commercial banks This is a professional debt assets contributed to

form the capital of banks From this has helped mobilize resources banks can continue to perform services for credit and other services provided to its customers

- Products - Retail financial services:

Products and services include retail credit lending forms as targetsuse, personal loans according to specific purposes, such as support for housing loans,

auto loans, student loans, business loans, mortgage loans, discount of valuable papers, the credit loan customers are individuals, households, but the total

amount of the loan is a huge

Payment services are services that use the non-payment by cash to carry out payment transactions of customers as the deducting money from own's accounts payable transferred to the beneficiary's account information accounting profession through bank payments Currently to make payments via bank, the customer can choose one form of payment has been issued in the regulation of payment via banks

as below: payment by debit authorization, authorized to collect , by check, by letters

of credit,

- Other Services Products:

In addition to the types of products and services mainly above, banks also all owed to perform other services consistent with their mandates astreasury services, foreign exchange trading services, financial advisory services, asset management and investment trust, escrow services, providing derivative products,

2.1.2 Product - Retail banking modernization:

Modern banking services are the best services and server customers through modern distribution channels is applied on the basis of modern technologies with the cost of investment is large, bring a lot of new benefical for customers While

‘overcoming difficulties and obstacles traditional distribution channels which were not implemented, including:

- Card Services:

Card banking is a banking product multi utility based introduction of modern

technology, it means payment by non cash and help reduce cash flow Accordingly,

the customer is the cardholder can use the service to withdraw cash, transfer,

balance inquiry, bill payment, payment for goods and countless other gadgets in the correspondent banking, at the point of accepting payment cards or automated teller machines

Currently there are two types of cards are provided by commercial banks,

which is kind of ATM carddomestic banks by issuing and use in Vietnam and international payment cards as VISA and MASTER circulated worldwide and very popular in the developed countries

- Electronic Banking Services:

This is a new modern service development, potentially helping customers access remote access to account information inquiry, carry out payment transactions, required to submit savings or other requirements relating to your account through connect your computer network with the bank account

management

2.2.1 The concept of retail banking service:

Service is a popular concept should have a lot of different interpretations of service According to Zeithaml & Britner (2000) [II.11], services are deeds, processes, how to do a certain job in order to create value for customers to use to

(2003) [I.7], services are all activities and results that a party may give the other party, mostly invisible, does not lead to ownership of something dirty Its products can be tied or not tied to a physical product

According to ISO 8402: 1999, as a result services created to meet the requirements of customers in the operation of contact between the supplier -

customer and internal operations of the provider.Thus, the service covers the whole

of the activities or interests to create value for customer use, to satisfy the needs and

expectations of customers

2.2.2 Characteristics of the retail banking service:

According to Ta Thi Kieu An author et al (2010) [I.9, page 96], the service has the following characteristics:

- The simultaneity, not divided:

This characteristic occurs continuously, meaning that the process of

providing and receiving services carried out simultaneously, at the same time with the presence of the customer during the production Therefore, the quality of service will be very difficult to predict which will be dependent on subjective judgments

and of course, we can not accumulate reserves as well as services can not test

before

- Heterogeneity, unstable:

Quality of service depends on who done, time and location provided Therefore, organizations can not rely on the final checks to assess the quality of service they provide This is an important feature that suppliers should note that if you want to improve the quality of its services

- Invisibility of the service:

Services could not hold, hold, hear, or see before buying Customers only feel the service as soon as it is provided and there should be signs or physical evidence about the quality of services such as: people, information, locations, equipment, expression subject, prices,

- Vulnerability, not kept:

Services are intangible so for is very fragile, suppliers and recipients can not

retain, unable to be consumed or sold for some time afterwards

2.3.1 The concept of quality of service:

Parasuraman & CTG (1985) [II.9] made the definition of quality of service, according to customers about the great and the general of an entity It is a kind of

attitude and the result from a comparison between what was expected and our

perception of things get Quality of service is the gap between the expectations of

the customer service and their perceptions when used across services Sharing views

with Parasuraman, Lewis and Booms (1983) [II.12] also said that service quality is

a measure of the level of service the customer should be taken commensurate with the expectations of how well customers Moreover,creating a quality service that meets customer expectations consistently

This statement clearly demonstrates that the quality of services related to customers' expectations and their perception of the service In addition, Parasuraman and CTG (1988) [II.10] explained that to know the predictions of the best customers is to identify and understand the needs of their internal The development of a system to the expectations of our customers is essential And then

we have a new strategy for the service quality effectively

Beside the introduction of the definition of quality of service, authors have studied and proposed models, different approaches to assess the quality of service Moreover, Lehtinen & Lehtinen (1982) [11.8] for the quality of services must be assessed on two aspects, (1) the service provider (process) and (2) the results of the service (output).Additionly, Grénroos (1984) [II.6] given model quality evaluation services to the two components of quality of service, that is (1) the technical quality,

is what actual customers receive and (2) the quality of the function, the way services

are provided

Parasuraman & CTG (1988) [IJ.10] has research and testing services in various fields of application components scale of service quality (SERVQUAL) for assessing the quality of services Even using the SERVQUAL scale has been inspected on relevance in-evaluating the quality of customer service in many different sectors However, other studies also indicated each component in the

servqual can be changed at each service and each different countries (Cronin &

Taylor, 1992) [II.4]

Lassar & CTG's research (2000) [II.7] have shown the existence relationship between service quality and customer satisfaction, although these are two different concepts (Parasuraman, 1985, 1988) [IJ.10, II.9] has shown that the quality of service, is determined by many different factors, are partial determinants of

satisfaction Cronin & Taylor's study (1992) [II.4] has tested this relationship and

concluded that the perceived quality of service should lead customer satisfaction

Studies have concluded that the quality of service is the premise of satisfaction

(Cronin & Taylor, 1992) [II.4] and is a key factor affecting satisfaction Based on the premise of previous studies, researchers Lassar & CTG (2000) [IL7], have pointed out the three criteria to reflect the quality of service, including: (1) How satisfied pleased with the quality of service (2) The ready to introduce service to others when asked (3) The commitment to continue to use the service (loyalty)

2.3.2 Features of the service:

Although there are many different concepts of quality of service, but at a overall quality of the service includes the following characteristics (according to Ta

Thi Kieu An author et al, 2010 [1.9, pages 99-100]):

The first characteristic, according to Professor Noriaki Kano (1984),

attributes of a services are divided into three levels:

- Level 1: basic expectations that services must be These are attached customer property not mentioned, but they say for granted Do not respond to this

attribute, the service will be denied and excluded from the market due to frustrated

- Level 2: specific requirements, also known as a dimension attribute But this attribute is often referred to as a function that customers want The higher the level of response, more satisfied customers

- Level 3: attractive factors This is the surprise factor, to make a difference with the services of the same type of opponent However, this factor is not constant over time it will gradually become a basic expectation that services should meet

The second characteristic of the quality of service is the specific market conditions Catch on a certain business process, product types are linked with an identified market A service is appreciated in case it meets the existing needs of the market as well as the request of interested parties

The third characteristic is also a key element of the service quality is measured Measuring the satisfaction of customer needs Service quality is measured by customer satisfaction Therefore, the most important thing of any public business process is to listen to the voice of the person using the product

2.4.1 The concept of customer satisfaction:

The quality of service is often the customer satisfaction Customer satisfaction is based on the marketing concept of satisfying the needs and wishes of customers Satisfied customers is a key factor to sustain long-term success in business and trading strategies appropriate to maintain customer hutva collection

According to Philip Kotler (2003) [1.7], the satisfaction level of the state is

feltone's sense derived from the comparison of a product awareness than his

expectations Accordingly, satisfaction with the following three levels: (1) if the perception of smaller clients, customers expect to feel dissatisfied; (2) if the perception of the customer expectation feel satisfied; (3) if a larger awareness, customers expect to feel the satisfaction or enjoyment

2.4.2 The relationship between service quality and customer satisfaction:

Many authors have studied customer satisfaction in the field services and

have generally concluded that the quality of service and customer satisfaction are

the two concepts are distinguished

According Zeithaml & Bitner, (2000) [II.11], the customer satisfaction is a general concept speaks to their satisfaction when using a service, also said the quality is concerned about the specific components of the service Many practical study of the relationship between service quality service and customer satisfaction Additionally, Cronin & Taylor (1992) [II.4] has tested this relationship and concluded that the quality of service is the premise of satisfaction and the key

factors affecting satisfaction Moreover, research by Lassar & et al (2000) [II.7] made three criteria canreflects the quality of service and customer satisfaction with

retail banking services, including:

- The expectations of customers using banking services than the actual retail customers receive

- Benefits customers get to use retail banking services, intends to introduce

friends and relatives to use

- Italy is ready to continue to use retail banking services

2.5.1 SERVQUAL model:

SERVQUAL model developed by Parasuraman et al (1985) [I9] given model year gap and ten service quality components, called SERVQUAL Parasuraman said that the quality of services in general can not identify which

depends on the customer's perception of service and the feeling that this is a review

of many factors The model is based on quality of service perspective feel that the comparison between the expected value, expectation (expectation) and the value customers perceive (Perception)

s* Five gap quality of service include:

~ The first gap occurs when there is a difference between customer expectations for quality of service and banking executives feel about the customer's expectations Basic point of this gap is due to bank executives do not understand all these characteristics make up the quality of our services and how to transfer them to customers to satisfy their needs

- The second gap between the perception of banking executives with specific requirements on service quality This gap occurs when banks had difficulty

in shifting our perception of the customer expectation of quality properties

- Third gap between the quality of service requirements and service performance This gap occurs when bank employees do not transfer to the customer service in accordance with these criteria have been identified

- Four gap is the distance between the actual supply of banking services

and external communication with customers The information provided to customers, the program promises in the service provider fails to comply will reduce

customers’ expectations :

- Fifth gap is the difference between the quality expectations of our customers and the quality they perceive Quality of service depends on this Once customers have found no difference between the quality they expect and the quality they perceive the quality of services that are considered perfect Besides fifth gap affected by the distance the previous four Therefore, to minimize the fifth gap or

company wants to enhance customer satisfaction, customer satisfaction,

organizations must find ways to shorten one to four

Service quality model of Parasuraman et al (1985) [IL-9] showed that the overall picture of the quality of service and that any public service, the quality of service perceived by customers to be 10 formed from the following components:

1 Credibility (Reliability): speaks the ability to perform a service as promised and precise, always completed on time, the same style and no mistakes at first

2 Meet: refers to the willingness, zeal, the desire of staff to meet the requirements

J Courtesy: Related to serve affable personality, respect and customer friendly 6.Communication: refers to the ability to communicate, communicateinformation for customers

7 Credibility: involves creating customer trust, to make customers trust in the organization

8 Safety: said to ensure the safety of our customers when they use the services of the organization

9 Understanding the customer: demonstrate the ability of understanding of customers, interest, understanding their needs through the desire to learn, requires customers to service

10 Tangible Media: refers to the visible elements to make an impression with

customers such as uniforms, equipment, materials, facilities services,

Models ten service quality components mentioned above have the advantage almost every aspect of the service However, the negative is complicated to measure Moreover, this model is only theoretical, there may be many components

of service quality models do not achieve that value assigned biet So, Parasuraman

et al (1988) [II.10] was inspecting patterns on multiple times and offered five basic

components measure the quality of service is as follows:

1 Credibility: demonstrate the ability to perform appropriate service and on time

2 The assurance: in order to build customer trust through professionalism, politeness, respect for customers, the ability to communicate and caring attitude

makes the best to customers

3 Tangible Media: represents the appearance of physical facilities, equipment,

staff outfits, items and materials used for the communications

4 Empathy: refers to the style of service of employees through the care, attention

to customers, wholeheartedly understand the needs of customers and create a sense

of peace of mind, safety customer

5 The feedback: expressed willingness to help customers and quickly troubleshoot when there are errors or unexpected situations occur

different sources the past

Form 2.1: SERVQUAL model — Five-distance service quality

(Source Parasuraman & partner, 1985)

2.5.2 Model of technical quality and quality of skills:

Service quality model of Grénroos was built in 1984 for the quality of service that is judged on two criteria: technical quality and quality functions

- Technical quality: customer service is received, it is the technical result of the supply process

- Quality function: the way in which customers receive the technical result of the supply process

Form 2.2: Service quality model of Grồönroos

(Source Gronroos, 1984)

2.5.3 Quality of Service Model BSQ Bank (Bank Service Quality):

SERVQUAL is rather common model for measuring service quality evaluation and applied the most in the marketing research However, this model is only limited assessment generally based on service quality measurement component

5 basic quality In particular, Carman (1990) [II.2] said that when studying a specific field of public services, apart from five basic components of the model SERVQUAL, need to analyze and evaluate additional new factors affecting At the same time, according to Gilmore and Carson (1992) [II.5] the SERVQUAL model evaluation focuses on the composition of services and products that have not paid much attention to the composition of the market, particularly is the price factor

From the above limitations, Bahia and Nantel (2000) [II.1] has successfully built BSQ model to assess perceived quality of services from retail banking customers This model is built on the basis of the ten components of the initial measurement model Parasuraman et al (1985) [II.9], in addition to models being added to the new factors represent the 7Ps part of the marketing mix such as product, price, location (place), communication (promotion), human (people),

processes and environmental services (physical) BSQ model after adjusting the

remaining 31 observed variables to measure six components related to the quality of

retail banking services, including:

1 Efficiency and ensure:

- Efficiency: the service can be provided efficiently to customers and the ability to make customers feel safe

- Guarantee: a demonstrated ability of bankers to address the requirements

of customers through the communication skills and the ability of the bank security

2 Approach:

Relating to the creation of favorable conditions for clients in accessing

services such as shortening the waiting time of customers, location of service and

convenient opening hours for visitors groin

3 Price:

The price of the service is the subjective perception of the customer with the price of similar services by other vendors Price measurable cost provider

customers Due to the volatility of financial markets and cultural particularities of

the business, product pricing and customer interest is always compared, rated among banks

4, Tangible Media:

Expressed through appearance, attire of the staff and the equipment and

facilities to cater for customer service,

5 The list of products and services (Services portfolio):

Assess the scope, consistency and innovation of banking products to meet

CHAPTER HI: METHODOLOGY AND DATA

COLLECTION METHOD

Chapter three introduces the models of study and researches methods to test

the model selected Build quality research model of retail banking services in the

BIDV_North Saigon Branch

3.2.1 Build quality research model of retail banking services:

Currently, there are many models to measure the quality of services However, author choose the pattern quality banking services to perform research BSQ In addition, this thesis based on the model Bahia and Nantel (2000) [IL-1] designed to measure On other hand, this model had proven measuring success in

some countries of the world such as Greece, Bulgaria, Serbia, Lybian, Iran

€nsure Approach H2

Price Hồ > Satisfaction

H4 Tangible

In this study could not assess the quality of service ageneral services such as high quality or low, but the quality of servicemust be measured by a set of scales to measure many concepts related components together and they together make up the

quality of service The quality of retail banking services is measured through the

satisfaction and perceived quality of customer service according BSQ model includes 6 components: effective and secure, access, price, tangible media and list

of products and services, reliability

Some hypotheses posed for research model as follows:

- Hypothesis H1: composition ensures effective and customer reviews the more they feel their level of service quality of retail banking increasing and vice

versa

- Hypothesis H2: Composition reach more customers evaluate the their

perceived level of service quality and increasing retail banking service opposite

- Hypothesis H3: Composition pricing feel valued by customers asmore then their perceived level of quality of service for more retail banking service rise and vice versa

- Hypothesis H4: composition means tangible customer reviews the more

they feel their level of service quality of retail banking increasing and vice versa

- Hypothesis HS: Components product portfolio is customer service rated more then their perceived level of quality of retail banking servicerise and vice

versa

- Hypothesis H6: Composition trusted more customers evaluate the their perceived level of service quality and increasing retail banking service opposite

3.2.2 Build quality scale retail banking services BSQ:

This study used 7 point Likert scale, from small classified (1) to large (7), as proposed by the Bahia and Nantel (2000) [II.1]

3.2.2.1 Quality Scale Retail banking services:

BSQ scale is a scale quite complete and has been successfully applied

measuring the quality of retail banking services in a number of countries in the

world such as Greece, Bulgaria, Lybian However, every country has the

characteristics of economic, political, cultural differences, while research and development applied BSQ scale requires adjustments and supplements to match the

characteristics of the retail banking services at Vietnam’s bank in general and

particularly in BIDV-North Saigon branch

Scale overall service quality in the model BSQ at retail banking of 31 observed variables to measure the six components of quality of service In particular, (1) the effective and ensure part of 13 observed variables, (2) approach components 5 observed variables, (3) component prices 5 observed variables, (4)

components of tangible media including 4 observed variables, (5) component

product portfolio includes 2 services observed variables, ( 6) trusted components 2 observed variables (Appendix 1)

3.2.2.2 Scale satisfaction and perceived quality of retail banking

1 In general, he / she completely satisfied with the quality of service due

retail banking service offer

2 He / she will be introduced to the body by using retail banking services for supply

3 In short, he / she will continue to use the services of retail banking next time

3.3 Design and Research Methods:

This research was conducted through two main steps: preliminary study and formal study

3.3.1 Preliminary study:

3.3.1.1 Technique plays, group discussions:

Preliminary studies were conducted through qualitative research methods including technical plays and group discussions Based BSQ scale (Appendix 1) for measuring the quality of services, through preliminary studies and technical plays to adjust time scale 1 (Appendix2) And then, it uses group discussion techniques, group 10 people with ages 25 to 45 who are knowledgeable about the banking sector and those who are using the services of retail banking at the bank BIDV, ACB through qualitative discussion outline (Appendix 3.1) The purpose of this

study to explore, adapt and complement the scale observed variables for BSQ star service quality to suit the retail banking market in Vietnam

The results showed that the group discussed a number of variables observed

by the customer need to remove it does not matter and they do not pay much

attention to these factors A total of 10 observed variables are removed

(Appendix2)

3.3.1.2 Scale adjustment:

From the results discussed in the model group, the scale BSQ after that adjustment variable remaining 28 observers (Appendix 3.2) In particular, (1) an effective and ensure observation of 8 variables, (2) access component includes 5 observed variables, (3) price includes 4 components observed variables, (4) components of tangible means includes 4 observed variables, (5) component product portfolio includes 3 variable service observed, (6) approach components including 2 observed variables Satisfaction scale consists of 3 variables remainis retained as the original

3.3.1.3 Designing the survey questionnaire:

After the group discussion, the questionnaire was designed as a two-part:

- Part I of the questionnaire was designed to gather the customer reviewsline of quality retail banking services, customer satisfaction at BIDV BSG, ACB, other local banks in Ho Chi Minh City This section design includes 31

7 HUTECH LIBRARY

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observed variables, including the first 28 observed variables used to measure quality

of retail banking services under the model BSQ and 3 other variables are used to

measure the satisfaction and perceived quality of customer service according to

research every Lassar et al (2000) [II.7]

- Part Il of the questionnaire is to classify information of respondents

issues such as age, education level, monthly income, gender.The questionnaire was

designed after the interview is finished is used to try 30 people to check the level of

clarity of the questionnaire and see the results right answer is information should be collected not After adjusting the questionnaire, the questionnaire form (Appendix 4) was sent to interview

3.3.2 Official study:

Research is done by informal research methods measure In other hand, quantitative research to test the scale of model research through survey questionnaires

Information and data are collected through surveys of individual customer suse retail banking services at BIDV-North Saigon branch, ACB and other local commercial banks in Ho Chi Minh City In addition, the reason why choosing ACB because of ACB survey is considered one of the commercial banks with market share leading retailers in Vietnam in curently, and the selection of ACB to have a basis for comparison compare service quality assessment of BIDV North Saigon branch By the way, direct interviewing technique is used primarily to collect data

And then, testing is selected by a convenient method According to Hair et al

(1998), to be able to factor analysis to explore the data collected with the sample size is at least 5 samples of 1 observed variables and sample size not less than 100

Model studies of observed variables is 31 If it bases on Standard 5:1 (five samples for an observed variable) and appropriate sample size survey to analyze and assess the quality of services at the two banks, the ACB, BIDV North Saigon

branch and the sample size n = 310 minimum (31 x 5 x 2) To achieve the proposed

sample size, 400 questionnaires were sent directly interviewing customers at ACB, BIDV locality BSG and Ho Chi Minh City

3.3.2.2 The plan data analysis:

First the scale of quality retail banking services will be encrypted appendix 5 The data will be collected after cleaning and treatment with SPSS to test the measurement model BSQ quality retail banking services

Chapter three presents the modeling studies and hypotheses given based on the quality of service model BSQ banks of Bahia and Nantel(2000) [II.1] measure customer satisfaction on service quality retail bank Next chapter also provides information about the design and research methods include preliminary studies and formal study After that, preliminary studies done by qualitative research techniques through role play, group discussion and interview test As the result, research is done by formal quantitative research Since then construction up a questionnaire interviews with buyers and provide processes for there search results

CHAPTER TV: RESULTS, FINDINGS AND PRESENTATION

OF DATA

4.1 Introduction:

The results were positive when applied BSQ model on BIDV_BSG, and has changed in a positive direction Moreover, BIDV attracted a lot of customers in the

retail business in terms of reliability, service satisfaction, customer care In

particular, bank attracted huge idle fund investments to banks BIDV_BSG The goal

is always to become the best bank which are customer confidence Therefore, bank always has improve strategy BSQ model applied in the bank Next stepshows the results of the studies at BIDV_BSG BSQ model based on the data were analyzed and recorded during deployment

4.2 Sample testing:

Survey results have collected 367 valid questionnaires and standards to make

database for the study Table 2.1 shows statistical respondents mainly concentrated

in two banks BIDV and ACB large Form is convenient sample survey respondents

directly to customers who use retail banking services in BIDV BSG, ACB and banks other Results rate of BIDV sample allocation accounted for 46.1%, accounting for 44.1% remaining ACB 9.8% was from other commercial banks The data collection is done according to the following 4 criteria:

- By age: the sample rate is 47.7% for the highest sample aged 21-30, followed by 30.8% for the sample aged 31-40; 16.3% for the sample aged 41-50; 4.1% for samples over 50 years and the lowest rate of 1.1% for those younger than

20 years old Survey results show that customer group for children aged 21- 40 accounted for a high rate of 78.5%

- According to education: survey sample of qualified college / university is the highest proportion of 75.7%, followed by high school degree is 14.7%, post- graduate qualifications 7, 6% and lower secondary education have the lowest rate of

1.9% Survey results show that customer group qualified college / university graduate and a high proportion of 83.3%

- The income (million / month): sample with the highest rate is 42% for

income from samples 5-10 million, followed by 28.1% for income form 10 - 15

million, 21.0% for samples with incomes above 15 million and the lowest rate is 9.0% for samples with less than 5 million incomes

- By gender: survey results show that the proportion of surveyed sex relatively equal with 51% male and 49% female

Table 2.1: Samples distributed according to respondents

Total 367 100 100 Under 20 years old 4 1,1 1,1 1,1 From 21 to 30 175 47,7 47,7 48,8

From 41 to 50 60 16,3 16,3 95,9 Over 50 years old 15 4,1 4,1 100 Total 367 100 100

Monthly From 5 — 10 million 154 42,0 42,0 51,0

income From 10 — 15 million 103 28,1 28,1 79,0

Over 15 million 77 21,0 21,0 100 Total 367 100 100

Male 187 51,0 51,0 51,0 Female 180 49,0 49,0 100 SEX Total 367 100 100

4.3 Rating scales with Cronbach's coefficient alpha reliability:

This method allows the analysis of variables eliminates inconsistent,

limiting dummy variables in the research process and evaluate the reliability of the

scale Cronbach's coefficient through Alpha By the way, Scale Cronbach's alpha coefficient of 0.6 or up that can be used in the case studies are new concepts

4.3.1 Result analysis quality scale retail banking services modeled BSQ:

The analytical results in Table 2.2 found all 28 variables measuring quality retail banking services under the model BSQ have a correlation coefficient of total variation (Corrected Item-Total Correlation) are greater than 0.3 should be accepted In addition, Cronbach's alpha coefficient of the materials measurement

(efficiency and guaranteed; approach; price; Tangible Media; portfolio of products

and services; credit reliability) are greater than 0.7 indicates that this is a good scale Thus, all 28 variables measuring 6 observed quality of service components in the model BSQ are used for factor analysis next EFA

Table 2.2: Cronbach's alpha coefficient scale components of quality retail

banking services

Variance Cronbach's Observed |Medium scale if Correlated

scales if Alpha if this variables the variable type variables total

variable types variable type

Components efficient and ensure (EAE): Cronbach's Alpha = 0,834

(Source Results analysis SPSS)

4.3.2 Analytical results satisfaction scale and perceived qualityRetail banking customers:

Satisfaction scale consists of 3 variables (S_1, S_2, S_3) have correlation coefficients greater than 0.3 turns of the total should be accepted In addition, Cronbach's alpha coefficient was 0.778 (greater than 0.6) proved to be a good scale Therefore, the variables of the satisfaction scale were included in the analysis next EFA factor

Table 2.3: Cronbach's alpha coefficient components satisfaction scale

Components Satisfaction (S): Cronbach's Alpha = 0,778

S1 10,17 1,877 0,613 0,704

S 2 10,28 1,935 0,550 0,770

S 3 10,04 1,665 0,687 0,617

(Source Results analysis SPSS)

research model was first time:

After checking the reliability by Cronbach's alpha coefficient, factor analysis explore EFA (Exploratory Factor Analysis) to be undertaken to minimize and summary turn off the data, evaluate the degree of convergence of the observed variables by citiespart Extraction method is the author selected for factor analysis method Principal Components with Varimax rotation

4.4.1 Quality scale retail banking services based on the model BSQ:

> Analytical results EFA Ist:

According to the results in Appendix 6.1, KMO and Bartlett's test KMO coefficient by 0.931> 0.5 with a significance level equal to 0 (sig = 0.000) showed EFA factor analysis suitable

At the 1,037 level by extracting eigenvalues are 5 factors with variance Criticism is 63.249% (greater than 50%) unsatisfactory As a result, the turn table Matrixa A_4 Rotated Component (real-time assessment of the transaction at the counter of customers) into its component measuring about prices, terms of content meaning is inconsistent with the model put the original should be rejected In addition, variable EAE_7 (assessment of bank guarantees to secure transactions when customers) into component groups of reliable measurement, in terms of content, the significance of this variable consistent with reliable components of

research models and suitable for measuring the actual assessment, so this variable is retained Thus, after the variable type variable A_4 remaining 20 observers continue

to be analyzed EFA 2nd

» Analytical results EFA 2nd:

According to the results in Appendix 6.2, KMO and Bartlett's test KMO

coefficient by 0.930 > 0.5 with a significance level equal to 0 (sig = 0.000) showed

EFA factor analysis suitable At the 1,032 level by extracting eigenvalues are 5 factors to the 64.206% deduction is wrong (greater than 50%) unsatisfactory According to the results table Rotated Component Matrixa then all variables are satisfactory weight (greater than 0.5) should be used as a service quality scale Analytical results EFA 2 extracted the remaining 5 components measurement

quality evaluation retail banking servicestotal variance extracted explain the

variability of the data is 64.206% and the coefficient of Cronbach's Alpha 2nd components greater than 0.6 are satisfactory

Table 2.4: Results analysis EFA and analysis Cronbach’s Apha scale

components of quality retail banking services

Element PAS R EAE P A Eigenvalues 8,363 1,260 1,123 1,063 1,032

Variance extracted (%) | 41,817% 6,300% |5,614% 5,314% 3,162% Cronbach’s Alpha 2 0,845 0,833 0,814 0,693 0,660

(Source Appendix 6.2 and Appendix 7)

Thus, six quality measurement component of retail banking services under the model after analyzing EFA BSQ was extracted remaining 5 components as follows:

- Composition and tangible means of product and service portfolio consists

of six variables: Tangible Media _1, Tangible Media _2, Tangible Media 4,

Product Directory _1, Product Directory 2, Product Directory _3

- Composition 4 variable trust: R_2, R_3, R_4, EAE_7.- Ensure effective composition includes 5 variables: EAE 1, EAE_2, EAE 3, EAE 4, EAE 5

- Composition price includes 3 variables: P_i, P_2, P_3.- Composition access includes 2 variables: A_1, A_5

4.4.2 Adjust the research model was first time:

EFA analysis above, the two components of tangible media and product catalog service model BSQ components grouped into one because they do not reach the value discrimination Therefore, theoretical models were adjusted accordingly evaluate the quality of retail banking services and to perform the next test

Reliable |“

From 4.1: Adjusted model 1st assess the quality of retail banking services

Several theories when conducting research models adjusted as follows:

- The hypothesis H1, H2, H3 and H6 is kept as original

- Hypothesis H4: The composition of tangible media product portfolio and customer services rated more then their perceived level of quality of services is increasing and vice versa of retail banking services