29 1.4.3 Experiences for commercial joint stock commercial banks in Vietnam30 CHAPTER 2: ASSESS CUSTOMER SATISFACTION WITH THE QUALITY OF E-BANKING SERVICES AT JOINT STOCK COMMERCIAL BAN
Trang 1ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH
-
NGUYỄN VŨ HẢI
STUDY CUSTOMER SATISFACTIONWITH THE QUALITY OF E-BANKING SERVICES AT JOINT STOCK COMMERCIAL BANK
FOR FOREIGN TRADE OF VIET NAM
NGHIÊN CỨU SỰ HÀI LÒNG CỦA KHÁCH HÀNG ĐỐI VỚI DỊCH VỤ NGÂN HÀNG ĐIỆN TỬ CỦA NGÂN HÀNG THƯƠNG MẠI CỔ PHẦN NGOẠI THƯƠNG VIỆT NAM
LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH
HÀ NỘI - 2018
Trang 2ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH
-
NGUYỄN VŨ HẢI
STUDY CUSTOMER SATISFACTIONWITH THE QUALITY OF E-BANKING SERVICES AT JOINT STOCK COMMERCIAL BANK
FOR FOREIGN TRADE OF VIET NAM
NGHIÊN CỨU SỰ HÀI LÒNG CỦA KHÁCH HÀNG ĐỐI VỚI DỊCH VỤ NGÂN HÀNG ĐIỆN TỬ CỦA NGÂN HÀNG THƯƠNG MẠI CỔ PHẦN NGOẠI THƯƠNG VIỆT NAM
Chuyên ngành: Quản trị kinh doanh
Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH
NGƯỜI HƯỚNG DẪN KHOA HỌC: TS BÙI QUANG HƯNG
Hà Nội - 2018
Trang 3DECLARATION
The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article
The other’s research result and documentation (extraction, table, figure, formula,and other document) used in the thesis are cited properly and the permission (if required) is given
The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration
Date: Dec, 20, 2017
Trang 4ACKNOWLEDGEMENT
I have gained huge knowledge, skill and insights from my MBA course The course raises my capacity of administration and management up to the next level I am now very confident in my position of management I would like to extend my sincerest thanks and appreciation to all those who have made this Thesis to be possible
I woud like to express my great gratitude to my supervisor Phd Bui Quang Hungfor him useful comments, remarks and engagement during my process of doing this master thesis Also, I would like to give my sincere thanks tocustomers of internet banking service quality at Vietcombank, in my survey, who have willingly spent their precious time joining the interview
Sincere thanks are extended to the Hanoi School of Business and Management - Vietnam National University, Hanoi for equipping me with huge knowledge and skills through various interesting and practical subjects I also would like to thanks my classmates for their friendship and reciprocal encouragement to make our class time to be unforgettable time
Trang 5STUDY CUSTOMER SATISFACTIONWITH THE QUALITY OF BANKING SERVICES AT JOINT STOCK COMMERCIAL BANK FOR
E-FOREIGN TRADE OF VIET NAM
1 Summary of the results
Research overview on service quality and customer satisfaction, the relationship between service quality and satisfaction with e-banking services
Analysis of the actual situation of providing electronic banking services at Joint Stock Commercial Bank for Foreign Trade of Vietnam Analysis of customer survey results using services on service quality and satisfaction with the quality of e- banking services through the elements of empathy, tangible means, responsiveness, assurance, reliability, price, service satisfaction
Propose solutions and recommendations on each factor to improve customer satisfaction with e-banking services of Vietcombank
2 Applicability in practice
The results of this research has high practical significance, as research on banking services is an urgent and timely issue for the banking industry and the quality of e-banking services is the issue that banks care about Therefore, the results of the thesis will contribute to the clarification of the role of quality of service with customer satisfaction,
e-thereby helping banks to improve the quality of service effectively
Trang 6TABLE OF CONTENTS
TABLE OF CONTENTS i
LIST OF TABLES i
LIST OF FIGURES AND CHARTS ii
INTRODUCTION 1
CHAPTER 1: RATIONALE AND RESEARCH MODEL 12
1.1 General overview about Electronic-banking and Electronic-banking services 12
1.1.1 Basic concepts 12
1.1.2 Benefits of E-banking services 13
1.1.3 E-banking services 16
1.1.4 The necessity of improving customer satisfaction with e-banking services at commercial banks 18
1.2 Customer satisfaction with E-banking 19
1.2.1 Concept of customer satisfaction with E-banking 19
1.2.2 Research model on customer satisfaction with E-banking service 20
1.2.3 Results of qualitative research and research model of the thesis 25
1.4 Experience lessons on improving customer satisfaction with E-banking services of the banks 27
1.4.1 Experience lessons of some banks in the worlds 27
1.4.2 Experience lessons of some commercial banks in Vietnam 29
1.4.3 Experiences for commercial joint stock commercial banks in Vietnam30 CHAPTER 2: ASSESS CUSTOMER SATISFACTION WITH THE QUALITY OF E-BANKING SERVICES AT JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM 32
2.1 Overview of Joint Stock Commercial Bank for Foreign Trade of Vietnam 32
2.1.1 The process of establishment and development 32
2.1.2 Functions and rights 33
2.1.3 Organizational structure and duties of departments 34
Trang 72.1.4 Results of production and business activities 34
2.2 The actual situation of providing e-banking services at Joint Stock Commercial Bank for Foreign Trade of Vietnam 39
2.2.1 Structure and scale of e-banking services 39
2.2.2 Products of e-banking services 40
2.2.3 Number of customers using e-banking services 41
2.2.4 Prices of e-banking services 43
2.3 Customer survey results on e-banking services of Joint Stock Commercial Bank for Foreign Trade of Vietnam 45
2.3.1 Information on the sample 45
2.3.2 Assess the reliability scale 48
2.3.3 Linear regression analysis 52
2.3.3.1 Test correlation coefficient matrix 52
2.3.4 Differences in Customer Satisfaction among individual characteristics58 2.3.5 Customer evaluation of the factors in the model 60
2.4 General conclusion 67
2.4.1 Advantages 67
2.4.2 Limitations and reason for limitations 68
CHAPTER 3: PROPOSE SOLUTIONS TO IMPROVE CUSTOMER SATISFACTION WITH THE QUALITY OF E-BANKING SERVICES AT JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIET NAM 70
3.1 Summary of the research 70
3.2 Solutions to improve customer satisfaction with the quality of e-banking services at Joint Stock Commercial Bank for Foreign Trade of Viet Nam 70
3.2.1 Solutions to enhance empathy 70
3.2.2 Solutions to enhance tangibles 71
3.2.3 Solution to the responsiveness 72
3.2.4 Solutions to the assurance 73
3.2.5 Solutions to the reliability 73
Trang 83.2.6 Solutions to the price 74
CONCLUSION, LIMITATION AND CONTRIBUTION OF RESEARCH 76
APPENDIX 80
Appendix 01: SURVEY FORMS E-BANKING 80
Appendix 02: Results of survey data analysis 84
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LIST OF TABLES
Table 2.1: Structure and scale of e-banking services at Vietcombank 39
Table 2.2: Types of e-banking products 40
Table 2.3: Number of customers using types of e-banking services 42
Table 2.4: Prices of some types of e-banking services 43
Bảng 2.9 : Results of the reliability test of the scale 48
Table 2.10 : Rotation matrix of independent variables 50
Table 2.11: Results of EFA for dependent variables 51
Table 2.12 Person correlation matrix of factors 52
Table 2.13: Summary of regression model 53
Table 2.14: Results of testing the suitabilityof regression model (Anova) 53
Table 2.15: Results of regression analysis 54
Table 2.16: Synthetization of the results of testing research hypothesis 55
Table 2.17: Speaman correlation matrix 58
Table 2.18: Differences in Customer Satisfaction among individual characteristics 58
Table 2.19: Evaluation of empathy 60
Table 2.20: Evaluation of Tangible Vehicles 61
Table 2.21: Evaluation of Responsiveness 63
Table 2.22: Evaluation of assurance 64
Table 2.23: Evaluation of trust 65
Table 2.24: Evaluation of price factor 66
Table 2.25 : Evaluation of customer satisfaction 67
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LIST OF FIGURES AND CHARTS
Figure 1.1: Model of the author Diana Marija Taraškevičiūtė 21
Figure 1.2: Research model of the author Vijay M Kumbhar (2011) 23
Figure 1.3: Research model of the author Vu Dinh Y Yen Van (2011) 24
Figure 1.4: Model of the author Nimako et al (2013) 25
Figure 1.5: Proposed model of the author 26
Chart 2.1: Results of capital mobilization at VCB in the period of 2014-2016 34
Chart 2.2: Total outstanding of VCB in the period of 2014-2016 36
Chart 2.3 VCB’s revenue from services in the period of 2014-2016 37
Chart 2.4 General business activities of VCB in the period of 2014-2016 38
Figure 2.1: The standard distribution of residuals 56
Graph 2.2: Distributed graph among residuals and standardized residuals 57
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INTRODUCTION
1 Problem based learning
Vietnam integrates into The World Trade Organization (WTO) with the commitment of the banking-sector opening in 2012, creating great opportunities as well as challenges for the system of commercial banks in Vietnam The participation of international financial institutions will put highly competitive pressure even on domestic market in Vietnam This enforces the banks to more diversify and develop their services and activities in order to meet the economy development and increasingly integrate with the development of the banking sector in the region and in the world
By applying achievements of the science and modern technology, the mode of providing products and services via electronic channels of distribution, which is also referred to as the term "electronic commerce" has been formed and quickly developed Having adapted to strong development of the internet and electronic means in recent years, the banks in Vietnam have also developed electronic banking services in addition to traditional banking services Therefore, customers can completely make their transactions
in a convenient way via electronic banking services without waste of time and costs as making direct transaction at transaction offices However, internet banking is still a new type of transaction without the completion of technology level as well as practical experience Although electronic banking service in Vietnam has made remarkable achievements but the development does not still match with its potential Although the banks spend much costs on being consulted and technical supported, the technical complexity and fierce competition environment makes the development of electronic banking service become difficult and risky
Being one of the leading banks in Vietnam, Joint Stock Commercial Bank for Foreign Trade of Vietnam not only pays attention to improve the traditional commercial banking business but also develops electronic banking business to catch up with the development of society and country in the period of industrialization and modernization Joint Stock Commercial Bank for Foreign Trade of Vietnam makes their effort to renew and apply technology into electronic channels of transaction in order to improve service quality, meet the maximum demand of customers and reduce number of direct transactions,
Trang 122
improve the revenue for the bank However, the electronic banking service is still one of the new banking services Besides some objective reasons such as the development of information technology and the competition among commercial banks, one of the most important reasons is the customer satisfaction to the electronic banking service According
to the real research, the customer satisfaction to the Vietcombank electronic banking service is not really high
Although Vietcombank always try to provide customers with the best services, it is not easy for any bank To become successful, the banks must have satisfactory answer for the question: Whether customers are really satisfactory with banking service in general and electronic banking services in particular or not? Because of this reason, the author choose
the research project: “Study customer satisfactionwith the quality of e-banking services
at joint stock commercial bank for foreign trade of Viet Nam”
2 Overview of the research
There are a lot of researches indicating the relation between service quality and customer satisfaction Previous researches prove that service quality has direct and significant impact on satisfaction (Caruana et al, 2000; Baker and Crompton, 2000) In addition, there are many researches on this relation in different sectors such as tourism, hospital (Johns, 1993), high-quality education (Ford et al 1993; McElwee and Redman, 1993), etc In the banking sector, the research on customer satisfaction towards banking service in general and electronic banking service in particular becomes to be paid attention
by most of domestic banks and banks in the world.Over a long time, there have been many researches related to service quality and customer satisfaction
When researching the relation between service quality and customer satisfaction,
we must mention the research of Parasuaraman and ctg (1988) In their research, the authors propose SERVQUAL - the model to assess service quality The model includes five dimensions of service quality and they consider that service quality is the function of the fifth dimension This fifth dimension depends on the former ones, which mean first, second, third, fourth dimensions Therefore, to shorten the fifth dimension and improve service quality, service administrators must make their effort to shorten this dimension Their research is the premise for the later researches on service quality The research of Parasuraman et al has provided an extremely valuable and thorough look about service
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quality measurement Because the research of Parasuaraman is highly aggregate and applies customer satisfaction measurement in most of services, many researches inherit and develop based on the research of Parasuaraman and ctg (1988) to measure customer satisfaction towards service quality
The author Diana Marija Taraškevičiūtė (2014) carries out the research on customer satisfaction towards electronic banking service in Swedbank For this research, the author interviews 384 customers using electronic banking service of Swedbank with total 45 questions After testing and analyzing data, the author concludes that the factors affecting customer satisfaction towards electronic banking service include: accessibility, Web design, content, convenience, security, flexibility, responsiveness and price Research model of the author Diana Marija Taraškevičiūtė (2014) is relatively complete and matches with electronic banking sector However, because the environment of banking sector is different in each country, there are many offered solutions being inconsistent with commercial banks in Vietnam
The author Vijay Kumbhar M (2011) has studied customer satisfaction towards electronic banking service at some commercial banks in India By inheriting the research model of service quality of Parasuaraman & ctg (1988) and some previous researches, the author has formed research model to measure satisfaction of customers using electronic banking service at commercial banks in India The research results indicate that there are
10 factors affecting customer satisfaction: the availability of system, accuracy, efficiency, security, responsiveness, ease of use, convenience, price of service, complaint settlement, communication, perceived value The research model formed by the author has make large contribution in electronic banking sector at the banks in India and many factors can be applied to measure customer satisfaction in electronic banking system in Vietnam However, because the business environment is different and the characteristics as well as the habit in using online banking of customers are different between Vietnam and India, there are many factors which are not consistent to be applied for the researches in Vietnam
- The research of the authors Nguyen Ngoc Chau et al (2011) on "the quality of online banking service and customer satisfaction To carry out the research, the authors base on the research result of Jun and Cai (2001) and propose the research model with the factors: the quality of online customer service, the quality of online information system and
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the quality of banking products and services The research of the authors Nguyen Ngoc Chau et al (2011) on "the quality of online banking service and customer satisfaction" Meanwhile, the hypotheses are offered by the authors, including: H1 the quality of online customer service has a positive impact on the quality of online banking service H2: The quality of online information system has positive impact on the quality of online banking service, H3: The quality of banking services and products has positive impact on the quality of online banking service, H4: The quality of online banking service has positive impact on customer satisfaction To verify these hypotheses, the authors deliver questionnaires to 300 customers with the sample being big national bank in New Zealand and its branches The research of the authors has made major contributions in assessing customer satisfaction towards online banking service However, factors that the authors study are not specific and clear
- Research of the author “Vu Dinh Y Van (2011) on: Assess customer satisfaction towards the quality of electronic banking service of Joint Stock Commercial Bank for Foreign Trade of Vietnam via customer satisfaction” By his own research, the author specified the theoretical basis related to research project, including: service quality, electronic banking, customer satisfaction, etc In addition, the author applied SERVQUAL - research model of service quality of Parasuraman & ctg (1988) to measure customer satisfaction towards the quality of e-banking service at Vietinbank However, because the author just studied SERVQUAL model, the accuracy of factor is not high and the factors did not really match with specific characteristics of e-banking service
Thus, after studying previous researches, the author realizes that most of researches achieve their own successes, in particular, every author built the research model for their own project However, there are certain limitations in each research Therefore, on the basis of inheriting the success and overcoming limitations of the previous researches, thanks to his own research project, the author will complete the assessment of customer satisfaction towards e-banking service at commercial banks in general and Joint Stock Commercial Bank for Foreign Trade of Vietnam in particular
Trang 155 Scope of the research
About space: The research is carried out at branches and headquarters of Joint Stock Commercial Bank for Foreign Trade of Vietnam,
About time:
+ Secondary data: Secondary data is collected from 2013 to 2015
+ Primary data: Primary data is collected from August to September of 2016
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6 Research methods
The thesis uses the research methods as follows:
+ Comparative method: This method is used to analyze the change in e-banking services at Joint Stock Commercial Bank for Foreign Trade of Vietnam in the period of
2013 - 2015: the number of services, revenue from services, number of customers using services, sponsor expense It presents the actual situation of the development of e-banking services at Joint Stock Commercial Bank for Foreign Trade of Vietnam
+ Qualitative method: This method is used to determine the factors having influence on satisfaction of customers using e-banking services of Joint Stock Commercial Bank for Foreign Trade of Vietnam Qualitative method is carried out by interviewing experts: Board of Directors and experienced staffs in the field of E-banking at Joint Stock Commercial Bank for Foreign Trade of Vietnam
+ Quantitative method: This method is used to measure customer satisfaction with E-banking services at Joint Stock Commercial Bank for Foreign Trade of Vietnam In order to carry out quantitative research, the author interviews customers at branches of Joint Stock Commercial Bank for Foreign Trade of Vietnam
To carry out quantitative research, the author has taken steps of the contents as follows:
- Sample design:
About sample size, according toTabachnick & Fidell, for the best regression analysis, sample size has to ensure the formula: n ≥ 8m + 50 (n is sample size, m is the number of independent variables in the model); Meanwhile, according to Harris RJ Aprimer (1985): n ≥ 104 + m (m is the number of independent and dependent variables),
or n ≥ 50 + m, if m <5
In case of usingexploratory factor analysis EFA, Hair & ctg (1998) considers that the sample size is at least 50, if 100 are better and the rate of observed variables / measured variables is 5/1 It means that each measured variable needs at least observed variables.According to Gorsuch (1983), in case of regression analysis, sample size requires at least 200 observed variables According to the experiences, it is better if
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sample size is larger
In this research, the research model includes six independent variables, one dependent variable and 32 observed variables.Thus, according to Tabachnick and Fidell (1991), the sample size is n ≥ 98; According to Harris RJ Aprimer (1985) n ≥ 111, according to Hair and ctg (1998) n ≥ 160 (32x5) However, this research also tests the difference about the satisfaction of customers using e-banking services based on their specific characteristics (gender, age, educational background, occupation) Therefore, the author chooses the sample size of 300 to ensure the well-formed and complete number of samples with different characteristics in terms of level, occupation and age.About the method of selecting research samples, the author selects convenient samples that are 18 year old customers or older who frequently use e-banking services of the bank based on the customer list
6.1 Collect information of research samples
Information of research samples is collected thanks to interviewing technique using questionnaire with customers who use e-banking services
The results of the interviews are achieved, after being cleaned (remove questionnaires which lack of information, have more than one answer, are determined to
be unreliable), they are entered into SPSS data matrix 20.0
6.2 Data analysis method
The process of research analysis is carried out through the periods as follows:
Assess the reliability of the scale
The assessment of reliability of the scale is carried out by using Cronbach's Alpha reliability coefficient and EFA through SPSS 20.0 software to select and remove observed variables which do not meet the reliability (garbage items) Among them:
Cronbach's Alpha is a statistical test about the close level (the ability to explain for
a research concept) of a group of observable variables through Cronbach's Alpha coefficient According to many researchers (Nunally, 1978; Peterson, 1994; Slater, 1995),
it can be accepted if Cronbach's Alpha coefficient is 0.6 or more in case the concept is new or new to the respondents in the context of research
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However, according to Nunnally and ctg (1994), Cronbach's Alpha coefficient does not indicate which variables should be removed and which variables should be retained Therefore, in addition to Cronbach's Alpha coefficient, correlation coefficient (item-total correlation) is also used and the variables with item-total correlation <0.3 will
be removed
EFA is commonly used to assess the value of the scale (uni-directionality, Convergent validity, and discriminant validity) or reduce a group of variables.In this research, factor analysis is applied to gather observed variables into a certain factor to measure the attributes of the research concepts Applied standards and variable selection for EFA include:
Bartlett standard and KMO coefficient are used to evaluate the suitability of EFA Accordingly, the hypothesis H0 (variables are not correlated in the total) is removed and therefore EFA is appropriate if 0.5 ≤ KMO ≤ 1 and Sig <0.05 In case of KMO <0.5, factor analysis may not be appropriate to data (Hoang Trong and Chu Nguyen Mong Ngoc, 2005, p 262)
Eigenvalue index (represent the variance explained by the factors) and cumulative index (Total Variance Explained shows that how many percentages the factors can explain and how many percentages are lost) According to Gerbing and Anderson (1988), factors with Eigenvalue <1 do not summarize information better than original variables (latent variables in the scale before EFA) Therefore, factors are only extracted at Eigenvalue> 1 and accepted when Total Variance Explained is ≥ 50%
In this research, after EFA, there is multiple regression analysis Therefore, during process of Cronbach's Alpha, the author will keep the scales with Cronbach's Alpha ≥ 0.6 and remove the variables with item-total correlation <0.3 During process of EFA, the author uses Principal component method with Varimax rotation; removes observed variables with Factor loading ≤ 0.5 or extracts other factors with the difference in Factor loading among factors ≤ 0.3
Multiple linear regression analysis
The linear regression analysis is carried out through the steps as follows:
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Step 1: Check the correlation among independent variables and the correlation between dependent variables and independent variables
through correlation matrix
Accordingly, the condition for regression analysis is required to have correlation among independent variables and correlation between dependent variables and independent variables However, according to John and Benet - Martinez (2000), when the correlation coefficient is <0.85, it is possible to ensure the differential value among variables It means that if the correlation coefficient is > 0.85, the role of independent variables should be considered because the multi-collinearity can occur (one independent variable is explained by another)
Step 2: Build and test the regression model
Y=β1X1+β2X2+β3X3+β4X4+ +βkXk
This is carried out through the steps as follows:
Select the variables for regression model (the author uses Enter SPSS method
to process all variables at the same time)
Evaluate the suitability of the model by the coefficient of determination R2 (R Square) However, R2 will increase when more independent variables are involved in model Although the more the model does not have independent variables, the more suitable it is with the data.Thus, Adjusted R Square
doesn’t depend on the number of variables added to the model, which are used to place R2 to assess the suitability of multiple regression model
Test the suitability of model to select the best model by using the ANOVA method to test the hypothesis H0: (no linear relationship between dependent variables with group of independent variables β1 = β2 = β3 = = βk = 0)
If statistic value F is very small (<0.05), hypothesis H0 is removed We conclude that group of independent variables in the model can explain the variation of dependent variables This means that the model is built in
accordance with the data, so it can be used
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Determine the coefficients of the regression equation, they are regression coefficients βk, measuring the average change of dependent variables when independent variable Xk changes one unit while other independent variables are unchanged However, the magnitude of βk depends on the measurement unit of independent variables, so it is not meaningful to compare them
directly Therefore,in order to compare the regression coefficients and
determine the importance (explanation level) of independent variables to dependent variables, the measurements of all independent variables are shown
by measurement unit of betadeviation
Step 3: Check the violations of regression assumptions
The regression model is considered to match with the total research if it does not violate assumptions Therefore, after building the regression equation, the necessary violations of assumptions should be checked as follows:
There are linear relationship between independent variables and dependent variables
The residue of the dependent variable has a standard distribution
The variance of deviation is constant
There is no correlation between residuals (independence of errors)
There is no correlation among independent variables (no multicollinearity)
Among them:
The tool for testing the linear relationship hypothesis is the scatter graph showing the correlation between the standardized residual value and the standardized pretest value
The tool to test the hypothesis of a dependent variable with a constant
variance is the scatter plot of the residual and the predicted or measured value
of Spearman's Rho
The tool used to test the hypothesis is that there is no correlation between the residuals as Durbin - Watson, or the scatter graph
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The tool used to determine the existence of multi-collinearity is the tolerance
or variance inflation factor (VIF).According to Hoang Trong and Chu
Nguyen Mong Ngoc (2005, pages no 217, 218), general principle VIF> 10 is
a multi-collinear; Meanwhile, according to Nguyen Dinh Tho and Nguyen Thi Mai Trang (2011, p 497), if VIF> 2, it may occur multi-collinearity
Test the difference of customer satisfaction when shopping at Imart
supermarket chain according to the specific characteristics of customers
The used tool is the Independent - Sample T - Test, Anova, Kruskal - Wallis test, among them:
The Independent - Sample T-Test is used in the case that demographic - social factors has two attributes (for example, gender includes male and female), thus divide the total samples into different groups
Anova is used in case of demographic–social factors with three attributes or more Therefore, we divide total research samples into three different groups
or more (for example, permanent residence includes: urban, rural, and remote areas) The condition for processing Anova is that the comparative groups must be independent and selected randomly Comparative groups must have normal distribution or enough large sample size to approach normal
distribution; Variance of comparative groups should be uniform
7 Structure of the thesis
Besides the introduction and the beginning, the research contains there chapters: Chapter 1: The rationale for e-banking and customer satisfaction for e-banking services
Chapter 2: The real situation of banking services and customer satisfaction for banking services in joint-stock commercial banks Foreign Trade of Vietnam
e-Chapter 3: Solutions to enhance customer satisfaction for e-banking services in joint-stock commercial banks Foreign Trade of Vietnam
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CHAPTER 1: RATIONALE AND RESEARCH MODEL
1.1 General overview about Electronic-banking and Electronic-banking
services
1.1.1 Basic concepts
* Concepts of banks and commercial banks
Bank is one of the most important financial organizations of the economy There is
a wide range of banks depending on the economy development in general and the financial
system in particular, in which commercial banks account for the largest proportion of scale
and assets, market shares and quantity Bank is the organization that attracts the savings
most in the economy Millions of individuals, households, enterprises and socio-economic
organizations send money to the banks The banks play a role as the payment center of the
whole society and intermediary institutions between idle fund owner and those who lack of
capital
Banks are financial institutions that provide the most various financial services,
especially credit, savings, payment services with the most multi-function services in
comparison with any business organization in the economy
Commercial bank is a form of credit institutions that performs all banking activities
and other related activities
There are main activities of commercial banks as follows:
+ Capital mobilization
+ Loans
+ Service trading
* Banking services
Service is a common concept in marketing and business It is a "special product"
which has many characteristics being different from other goods such as “intangible”,
“heterogeneous”, “inseparable”, “un-stored” Therefore, from past to now, there is no
complete definition of services
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According to Zeithaml & Britner (2000), services include all behaviors, processes, manners of doing a job in order to create values for customers to satisfy their needs and expectations
According to Kotler & Armstrong (2004), services includes all activities or benefits that enterprises can offer their customers in order to build, strengthen and expand long-term relationships and partnerships with their customers
* Electronic banking services
E-banking is explained as the customer’s ability to access a bank from a remote area for: collecting information, making payments and financial transactions by their deposit at that bank, registering for new services (Truong Duc Bao, 2003)
E-banking services mean computer software system that allows customers to learn
or buy banking services by connecting their computers to the bank
Above concepts define e-banking by providing services or electronic distribution channels This concept may be true at some periods but it is not possible to generalize the development history and the future of e-banking The most general definition of electronic banking can be expressed as follows: "Electronic banking includes all types of transactions between banks and customers (individuals or organizations) based on the process and digitized data transferring to provide banking products and services "(Huynh Thi Nhu
Tran, 2007)
1.1.2 Benefits of E-banking services
* For customers
E-banking provides customers with the benefits as follows:
- The biggest advantage of e-banking services for customers is the convenience and readiness Customers might make transactions for 24 hours a day without going to the bank It is quite convenient and saves time for customers Now, they can access E-banking only by sending an message, making a phone or accessing internet for transactions, inquiries, service payments, etc… at anytime and anywhere instead of going to the banks
Trang 24of making transactions, invoice payments, etc… but also saves storage fees when paying salary via bank accounts instead of cash The staffs needn’t go to banks directly, they will have more time to do other works Moreover, the cost for using E-banking is very cheap
- Access information quickly, especially account information This plays a significant role for the enterprises that own many different accounts They can check the balance of all accounts In addition, customers are provided all hot news with enough information such as: exchange rate fluctuations, inquiries of financial information of the partners, etc …
- Manage money better because E-banking helps customers increase the money circle and manage the cash in the business better
- Moreover, with the standards, customers are served with dedication and accuracy instead of depending on different attitudes of bank staffs
* For banks:
- E-banking services help banks diversify the types of services, through new services, new distribution channels, banks can extend their customer scope, develop market share Besides, the strong development of modern services will change the income structure with orientation of decreasing income proportion from credit activities, which contains a lot of high risks This is the factor that ensures stable growth and development
- The application and development of modern banking technologies will help banks always renew, integrate and develop not only in domestic market but also in foreign market E-banking services will create better reputation, improve competitiveness for the banks The banks that offer these services are considered to be high-tech banks, therefore they get higher prestige and meanwhile provide better feedbacks to the market changes
Trang 25- The efficiency of the capital use will be improved in the business sector of the banks Through the services of E-banking, payment orders and collection of customers will
be processed quickly, facilitating fast-moving and convenient money capital, well building the transaction relation and exchange between money and goods The number of complete transactions will be increased because transaction staffs are also responsible for final step
of the transactions It is to keep business account into banks’ system of accounting books without entering the detailed information on the transaction screen Therefore, the circulation of goods and money is sped up and help the efficiency of capital use This is the advantage that transactions of traditional banks can’t reach high speed and accuracy in comparison with E-banking With multi-business model of modern banks, the capacity to develop and provide services for many target customers and business sectors is very high
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- Especially, E-banking can provide cross-services Accordingly, banks can cooperate with other insurance companies, stock companies and financial institutions for offering utilities and products to meet all needs of customers with related services such as: banking, insurance, investment, stock to retain and attract customers Due to the advantages of applicable technologies, software, internet providers, E-banking attracts and retains customers to use, make transactions with banks and they become traditional customers of the banks
* For the economy
- E-banking services increase the circulation of goods and money E-banking services allow customers to reduce the number of cash transactions, enable customers to receive payments quickly regardless of geography distance They will be more assured in delivering goods in most quickly way to recall the capital soonest for the next investment
in production or trading E-banking helps the circulation of goods and money increase It allows customers to reduce the transactions in cash, therefore, the sellers receive payments quickly
- E-banking services help the payment system be modernized E-banking services make the transaction process simple and fast, transaction costs reduce significantly, ensure the safety and the payment much more convenient
- E-banking services contribute to the development of commerce, especially commerce By modern payment methods via E-banking, there are more choices for enterprises in commercial transactions Online payment services are the base of e-commerce systems, so the diversification of e-banking services will complete e-commerce
e-1.1.3 E-banking services
The rapid development of the information technology system in recent years has significantly influenced the development of banking technology by launching e-banking services and electronic payment means
Internet banking: This service helps customers transfer money through their
accounts as well as controls the operation of these accounts To use this service, customers access the website of banks and make financial transactions, send inquiries for necessary
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information The information is very various from the detailed transactions of customers to other information about banks Customers can access other websites for purchasing and making payments with banks However, when connecting internet, banks must have a quite strong security system to prevent global risks This is the biggest obstacle for the banks in Vietnam because the investment in security system for banks in Vietnam is quite expensive
Home banking: With home banking, customers can make transactions with banks
via intranets of banks Transactions are made at home, office, company through a computer system connected to the computer system of the banks Through home banking, customers can make transactions of money transfer, transaction statement, exchange rates, interest rates, debit notice, credit, etc To use home banking services, it also requires customers (at home or office) to have computers connected to the computer system of banks via a modem - dial-up phone, customers must register a phone number and only this phone number is connected to the home banking system of the banks
Phone banking: This product provides banking information via mobile phones
automatically Because of the automation, type of information is fixed in advance, including information about exchange rates, interest rates, stock prices, personal information for customers such as: account balance, statement of five final transactions on the account, latest news, etc… The system automatically sends fax once any request of customers on above information Nowadays, via phone banking, the information is updated
in the different way from the past Customers also receive information at the end of previous day
Mobile banking: It is the manner of making payment online via mobile phones It is launched to meet the needs for micro payments or automatic services without
being served To use this service, customers must register to become official members and provide basic information such as: phone numbers, personal account number for payment After that, customers are provided ID by the service suppliers via this network This code
is not a phone number, which is converted into a barcode for sticking on mobile phones It makes easier to provide customer information faster, more accurately and simply than the terminal devices of the points of sale or service Besides identification number, customers are also provided a personal identification number (PIN) for confirming payment
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transactions whenever the payment service provider requests After necessary procedures are completed, customers will be official members and eligible to make payments via mobile phone
Call center: Thanks to the centralized data management, customers who have
accounts at any branch still call a fixed line number of this center for general and personal information Be different from phone banking, which provides only pre-programmed information, call centers can flexibly provide information or answer customer inquiries The disadvantage of call center is that it requires staffs in charge for 24 hours a day
1.1.4 The necessity of improving customer satisfaction with e-banking services at commercial banks
First, the sector of banking business in general and E-banking services in particular
is regarded as the most sensitive and competitive business sector.Because this type of business is sensitive to all socio-economic fluctuations, a small fluctuation in society and economy also creates a big change in banking services and vice versa In addition, e-banking products and services are highly competitive because of various products, easy to copy, hard to keep copyright, etc Therefore, competition is always the survival of banks Banks can only improve their competitiveness by increasing the number of customers using the services Hence, the higher the customer satisfaction is, the greater the competitiveness of the bank becomes
Second, the purpose of proving e-banking services is to meet the needs of customers If the services become more perfect, customers will be more satisfied and become fond of banks In addition, their compliments, satisfaction with existing services will make others go to banks for transactions
Third, nowadays, the more and more commercial banks have been established, the more products and services on the market increase Customers are increasingly having more strict requirements about products and services, they will compare, evaluate and decide to co-operate with banks that offer good services Or even, if they find that products and services of banks can not meet their needs, they will change to use e-banking services
of other banks Therefore, customer satisfaction is the key to retain customers to use services
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Fourth, due to the economic development, higher income and living standards of people, it is inevitable to consider that requirements of customers in e-banking services have a direct impact on the operation of commercial banks The commercial banks will have to compete more fiercely and be more sensitive to market fluctuations in order to retain old customers and attract new customers to expand market share, reduce risks and improve competitiveness, stabilize banking operations
Fifth, the development in orientation of multi bank and reduction of the dependence on credit operations requires banks to provide various, lump-sum and high-quality electronic banking products on modern banking technology platform Meanwhile, customer satisfaction with E-banking services is not only shown in increasing utilities for services or products but also in service quality, service style, considering customer to be the king with the motto of making customers more pleasant to meet their demands and bring the highest economic efficiency for banks Therefore, the improvement of customers
is very necessary
1.2 Customer satisfaction with E-banking
1.2.1 Concept of customer satisfaction with E-banking
Concept of satisfaction
Customers are the existence factor of all business sectors "The customer is the king" who determines the sales based on their satisfaction with the quality of products or services they are using Therefore, the motto of service providers is to satisfy the needs of customers and therefore their possibility to continue to buy "goods" is very high
Customer satisfaction is the perception of a person through the consumption of a product or service and the interest level that a service brings in comparison with what this person expects (Philip Kotler , 1991) Or, in the point view of Bachelet (1995), satisfaction
is the customer's emotional responsiveness to a product or service based on his own experiences
Customer satisfaction is considered to be the foundation in marketing concept of satisfying customers' needs and desires (Spreng, MacKenzie, & Olshavsky, 1996) Customers are satisfied, which is an important factor in maintaining long-term success of
Trang 30If customers’ perception is lower than their expectation, they will be dissatisfied
If customers’ perception is equal to their expectation, they will be satisfied
If customers’ perception is higher than their expectation, they will be satisfied or pleasant
Concept of customer satisfaction with E-banking
Based on concept of customer satisfaction and concept of E-banking services, the author expresses his view on customer satisfaction with E-banking service as follows:
Customer satisfaction with E-banking service is to satisfy the needs of customers (both individuals and organizations) in proving banking services via computer software of electronic distribution channels
1.2.2 Research model on customer satisfaction with E-banking service
1.2.2.1 Research model of the author Diana Marija Taraškevičiūtė (2014)
Research model of the author Diana Marija Taraškevičiūtė gives the factors affecting customer satisfaction with E-banking services at Swedbank This model is inspected on random samples at head office of Swedbank in Riga, Latvia The author offer research model as follows:
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Figure 1.1: Model of the author Diana Marija Taraškevičiūtė
The factors in the model are explained by the author as follows:
+ Accessibility: This factor determines the customers' ability to access information and online services (Zeithmanl, 1990) Accessibility includes factors such as website layout, tools, total performance and function (Gowin-Jones, 2001; Hackett and Parmanto, 2009)
+ Web Design: This factor shows the layout, graphics and structure of the website The website is easy to use with high-precision, aesthetics and security that is a key factor for assessing the quality of E-banking
+ Content: The content of e-banking websites is the most important factor affecting customers’ acceptance of e-banking services (Jayawardhena and Folley, 2000; Pikkarainen
Trang 32+ Confidentiality: The belief plays a great significance to the users so that they are ready to exchange money and personal information on banks’ online websites (Friedman et al., 2000; Wang, 2003) Therefore, confidentiality is an important factor affecting the needs of customers for e-banking services
+ Flexibility: According to Montgomery & Smith (2009), Peppers & Rogers (1997) Management of customer relation is a necessary activity to understand the interests, hobbies of customers in order to provide special services to meet the needs and expectations of customers Banks should offer specialized services with better quality than their rivals, which is suitable for specific customer segment to improve customer satisfaction for banking services in general and e-banking services in particular
+ Responsiveness: This factor includes the speed, timeliness, quick confirmation for transactions and solutions for customers’ complaints Slow responsiveness will lead to the delay and customers will not be satisfied
+ Price: It becomes advantages of the banks when providing e-banking services if they provide services to meet hobbies and needs of customers with low cost
1.2.2.2 Research model of Vijay M Kumbhar (2011)
The author Vijay M Kumbhar (2011) builds model of customer satisfaction with E-banking services based on previous research models such as: model of Kano (1984), SQ model of Gronroos (1984), model of Szymanski and Hise (2000), model of Yoo and Donthu (2001) After completing model, the author tests α coefficient to prove the reliability of the factors in the model After finishing the test, the author Vijay M Kumbhar (2011) realizes that alpha Cronbach value of all factors in the model is satisfactory and significant Therefore, the author proposes the model of accessing customer satisfaction with E-banking services by the factors as follows:
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Figure 1.2: Research model of the author Vijay M Kumbhar (2011)
1.3.1.3 Research model of the author Vu Dinh Y Yen Van (2011)
The author Vu Dinh Yen Van (2011) builds model of researching and measuring customer satisfaction with E-banking services based on available variables in two models SERVPERF (5 components and 22 observed variables) and GRONROOS (two components and 33 observed variables) with the main basic of 5-component service quality model SERVPERF, the draft scale is built After the trial interviews with the customers and expert consultation, draft scale is adjusted and added variables accordingly The research scale has 6 components, 33 variables to assess customer satisfaction with the services
After building daft model, the author conducts to access the model by using exploratory factor analysis to determine the factors affecting customer satisfaction based
on collected data After nine times of exploratory factor analysis, eight factors are removed from the model and six components are extracted with Average Variance Extracted of 61,628% at Eigenvalue greater than 1 Components and variables are proposed and Cronbach's Alpha reliability test is to access the reliability of the scale In this process, all components have Cronbach's Alpha greater than 0.6 Since, the author proposes the model
of customer satisfaction factors with E-banking services, consisting of six components: empathy, reliability, tangibles, price, assurance and responsiveness The author's model is
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Figure 1.4: Model of the author Nimako et al (2013)
1.2.3 Results of qualitative research and research model of the thesis
Therefore, there are many research models proposed to assess customer satisfaction with E-banking services at commercial banks However, when choosing a model for researching E-banking services at commercial banks in Vietnam, the author realizes that model of the author Vu Dinh Y Yen Van is the most suitable because his model is built on available variables of models SERVPERF and GRONROOS These two models are applied most widely in service quality measurement in general and quality of E-banking services in particular
In addition, SERVPERF is built on the basic of SERVQUAL model (Parasuraman
et al., 1988) This is a reliable and accurate measurement tool (Parasuraman et al., 1988; 1991; 1993), which is used widely (Buttlr 1996; Robinson, 1999) Meanwhile, many researchers in the country use this model to measure the satisfaction with E-banking services such as: Tran Quang Trung (2011) with “online banking services and customer satisfaction”, Ha Thuy Nga (2014) with “research the factors determining quality of E-banking services at Techcombank”
Although GRONROOS model has not been tested as widely as SERVQUAL model, it has also contributed some actual researches such as: measure satisfaction with services in the sector of architectural design (Baker & Lamb, 1993), accounting (Higgins
& Ferguson, 1991), pizza delivery service (Allaway, 1993) (From Lassar & ctg, 2000), banking services (Lassar & ctg, 2000), library services (Tran Xuan Thu Huong, 2007),
Customer Satisfaction
Customer service Website design Assurance Preferential policies Provide information
Trang 36Therefore, with above statements, the author proposes research model of this thesis
as follows:
Figure 1.5: Proposed model of the author
The hypotheses of the research model are as follows:
H1: Empathy affects customer satisfaction positively
H2: Tangibles affects customer satisfaction positively
H3: Responsiveness affects customer satisfaction positively
H4: Assurance affects customer satisfaction positively
H5: Reliability affects customer satisfaction positively
H6: Price affects customer satisfaction positively
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1.4 Experience lessons on improving customer satisfaction with E-banking services of the banks
1.4.1 Experience lessons of some banks in the worlds
Today, e-commerce is an inevitable development trend in the world E-commerce
is rapidly developing and deeply changing business manners, forms and content of economic, cultural and social activities of human beings To boost the integration process, attract customers as well as seize business opportunities, most banks in the world are constantly enhancing and offering convenient, fast services which are supported strongly
by modern technologies such as: automatic teller machines (ATMs), Point of sale (POS), banking service network via telephone, personal computers, etc With the rapid development of information and communication technology, science and technique, new technologies such as Internet, mobile phone networks, traditional banking model is gradually being improved and replaced by new model - electronic banking E-banking has made great progresses and become an inevitable model for current banking system Take advantages of this development, banks in the world have taken many measures to improve the quality of e-banking services in order to satisfy the highest satisfaction of customers for this service Specific experience lessons of these banks are as follows:
1.4.1.1 Experiences of DUBAI ISLAMIC BANK:DIB
Customers using e-banking services are always the top foreground targets at DIB
It is the reason why DIB takes a wide range of measurements as well as productive products or services, meeting the needs of customers It ensures that their slogan "tend to customers by e-banking quality" is not just a slogan but becomes a part of all transactions
at DIB With more than 30 years of experiences in the banking sector, Dubai Islamic Bank has combined the highest moral standards of Islam with modern technology to provide "a list of the best electronic banking products and services in the world"
In order to improve the quality of e-banking services, DIB has expanded its network of branches and ATMs through the United Arab Emirates and developed electronic technologies such as Internet, mobile phones and banking transactions via phones, etc DIB will help customers save time, effort, reduce costs and support customers to be consulted
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Therefore, if customers need, DIB is ready to advise customers throughout the process of using banking services etc Thus, each customer of DIB can double the advantages thanks to flexible selection of optimal solutions and benefits in e-banking products provided by banks In addition, one of the leading concerns of DIB is the commitment of the customers to use the services
With slogan “We care, We listen and We act”, DIB always expects the response from customers for constantly improving and providing customers with the best banking utilities to satisfy the highest satisfaction of the customers with banking service quality in general and E-banking service quality in particular
1.4.1.2 Experiences of BNP Paribas – Bank of French
BNP (Banque Nationale de Paris) Paribas is the bank providing largest operation in French with more than 8 millions of customers and keeps the leading position in banking services via internet Through nationwide branches, transaction offices, BNP Paribas maintains their relatiosn with individual customers and corporations in a professional and independent way In order to maximize efficiency, improve the quality of e-banking services and meet the needs of customers better, BNP Paribas has restructured with two core groups:
Group 1: Distribution and development of e-banking products (focus on the
relation between sales and marketing)
This group focuses on sales and development strategies of e-banking products based on customer relation including the research of customers’ behaviors and expectations, market monitoring as well as competitors to create new E-banking products Sales of E-banking products and services help the group determine how products and services are sold so that objectives and measures are proposed
Group 2: Conduct business and take care of customers using e-banking services
(especially after-sales service)
This group has two main tasks: organize and conduct daily tasks ("back office" section of the bank) The objective of this group is to process e-banking transactions in a
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specialized way for the best quality This special platform is designed for different products, not depend on geographic zone
In addition, BNP Paribas has implemented a very large-scale investment program
to modernize their branch network The development of consumer network along with young employees is their strength With a commitment to ensure the quality of banking services in general and e-banking services in particular, the BNP Paribas brand will be increasingly worthy of the “Leading Bank of France" in satisfying the highest needs of customers who use services in general and e-banking services in particular
1.4.2 Experience lessons of some commercial banks in Vietnam
1.4.2.1 Experiences of Vietinbank
Vietnam Joint Stock Commercial Bank for Industry and Trade satisfies customer satisfaction by improving the quality of E-banking services for customers
In process of implementing these, the bank sums up experiences as follows:
- Check e-banking services to customers regularly, build the checking procedures associated with corrective measures and prevention of shortcomings
- Research and test throughout the process of designing services to determine and remove potential shortcomings
- Establish the quality control department for E-banking products and services
- Complete and simplify the process and procedures, reduce transaction time and improve the professionalism of staffs
- Allow customers to register online services
- Encourage staffs to arrange their tasks scientifically, follow the prescribed procedures
- Modernize the banking technology, ensure the safety of customers' information using services
- Implement the tasks assigned by Headquarters on the application of technology
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- Sign liability contracts with staffs who manage the accessibility of important systems
- Use technical tools to prevent illegal access, virus infection, data hacking; Supplement more network security staffs to ensure the safety for accounts and customer transactions in e-banking
- The way to show e-banking services on the bank's website is lively, focuses on
"e-banking services" section
- The bank focuses on improving the quality of human resources, especially the staffs in the e-banking sector
- Supplement more staffs for the sector of E-banking services banking services, build the recruitment process strictly, suitably and effectively
- Periodically organize training courses and test professional skills for staffs about working with modern technology
- Regularly evaluate customers' opinions about their expectations for e-banking products and services, receive feedbacks from customers to improve service quality for the highest customer satisfaction
1.4.3 Experiences for commercial joint stock commercial banks in Vietnam
From experiences in developing and improving the quality of E-banking services in some banks in the world, we have some experiences to develop and improve the quality of E-banking services for commercial banks in Vietnam as follows:
First, build a complete strategy of developing E-banking services and products based on market research, determine capability and development objectives of each bank At the same time, it is necessary to