THE CUSTOMER SATISFACTION OF ELECTRONIC BANKING SERVICES OF VIETNAM PROSPERITY JOINT STOCK COMMERCIAL BANK (VPBANK)

THE CUSTOMER SATISFACTION OF ELECTRONIC BANKING SERVICES OF VIETNAM PROSPERITY JOINT STOCK COMMERCIAL BANK (VPBANK) The developnent of advanced technology has brought many benefits and created new demands associated with electronic products including electronic banking services. The main aim of this disertation is to develop the quality of electronic banking services of Vpbank based on studying the customer satisfaction with these services. There are 4 objectives that this thesis will deal with. The first thing that this study focuses on is factors affecting customer satisfaction of Electronic Banking services of Vpbank based on the model of Servqual inclusing User Interface, Service Fee, Responsiveness, Reliability, Empathy, And Assurance. Secondly, the survey will test the effect of each factor on the satisfaction of customers and assess customer satisfaction with Electronic Banking services of Vpbank. Moreover, whether there is a difference in customer satisfaction level according to factors such as gender, age, and time of service use will be evaluated carefully. Finally, based on the statistics, recommendations to enhance the customer satisfaction as well as the quality of ebanking services of Vpbank will be made. The disertation is structured in five main chapters: (1) Introduction, refering to objectives, scope and delimitation of the research; (2) Literature Review, introducing the background knowledge and models commonly used when assessing the customer satisfaction with services; (3) Methodology, presenting research design; (4) Results and Discussion; (5) Conclusion and Recommendations, discussing the conclusion and giving recommendations to better Vpbank’s ebanking services.

BANKING ACADEMY FACULTY OF FOREIGN LANGUAGES

-GRADUATION THESIS

THE CUSTOMER SATISFACTION OF ELECTRONIC BANKING SERVICES OF VIETNAM PROSPERITY JOINT STOCK COMMERCIAL BANK (VPBANK)

Ha Noi, May, 2019

In addition, I would like to thank my friends from Vpbank for their help.They supported me greatly, helped me do piloting test, and gave me feedbackbefore I widely published my questionnaire Thanks these feedback, I conducted mysurvey smoothly and effectively.

Finally, I would like to thank my parents and my friends as well for theirsupport and encouragement throughout my study

Author

Hoang Anh

i

I declare that this dissertation entiled “The customer satisfaction of electronicbanking services of Vietnam Prosperity Joint Stock Commercial bank (Vpbank)” isthe result of my original research work

The interpretations put forth are based on my reading and inderstanding ofthe orginal texts, and they are not published anywhere The other books, articles,and websites, which I have made use of are clearly referenced in the paper

For the present thesis, which I am submitting to the Banking Academy ofVietnam, has not been submitted to this or any other universities before

Research student

Hoang Anh

ii

TABLE OF CONTENTS

ACKNOWLEDGEMENTS i

DECLARATION ii

TABLE OF CONTENTS iii

LIST OF TABLES vi

LIST OF FIGURES viii

LIST OF ABBREVIATIONS ix

LIST OF APPENDIX x

ABSTRACT 1

CHAPTER I: INTRODUCTION 1

1.1 Introduction 1

1.2 Background of the study 1

1.3 Objectives of the study 2

1.4 Significance of the study 3

1.5 Scope and delimitation 3

1.6 Definition of terms 3

CHAPTER II: LITERATURE REVIEW 6

2.1 Theoretical and conceptual framework 6

2.1.1 The quality of services 6

2.1.2 The customer satisfaction 6

2.1.3 The relationship between the quality of services and the customer satisfaction 7

2.2 Related studies 7

2.2.1 Model of customer satisfaction index (CSI model) 7

2.2.2 Customer satisfaction model ServQual of Parasuraman 8

2.3 Research paradigm 10

iii

CHAPTER III: RESEARCH METHODOLOGY 11

3.1 Locale of the study 11

3.2 Research design 11

3.3 Population, Sample and Sampling technique 13

3.4 Respondents of the study 14

3.5 Research instruments 14

3.6 Data Gathering procedures 15

3.7 Statistical treatment 16

3.7.1 Data entry 16

3.7.2 Data coding 16

3.7.3 Data cleaning 17

3.7.4 Primary data 17

CHAPTER IV: RESULTS AND DISCUSSION 19

4.1 Results 19

4.1.1 Evaluation of the customer satisfaction with Vpbank’s e-banking services through Descriptive analysis 19

4.1.2 Background characteristics of customers through Frequency analysis 29

4.1.3 Difference in customer satisfaction level according to factors such as gender, age, and time of service use through One-way ANOVA 31

4.2 Discussions 36

4.2.1 The customer satisfaction with Vpbank’s e-banking services 36

4.2.2 Background characteristics of customers 39

4.2.3 Difference in customer satisfaction level according to factors such as gender, age, and time of service use 39

CHAPTER V: SUMMARY, FINDINGS, CONCLUSION AND RECOMMENDATION 41

iv

4.1 Summary 41

4.2 Findings 41

4.3 Conclusion 42

4.4 Recommendations 43

4.4.1 To the Government 43

4.4.2 To the State bank of Vietnam 45

4.4.3 To Vpbank 45

BIBLIOGRAPHY 1

APPENDICES 3

Appendix 1 3

Appendix 2 7

Appendix 3 8

v

LIST OF TABLES

Table 4.1 Result of Cronbach’s Alpha test for the factor User InterfaceTable 4.2 Customer satisfaction with User Interface factor of Vpbank’s e-

banking servicesTable 4.3 Result of Cronbach’s Alpha test for the factor Service Fee

Table 4.4 Customer satisfaction with Service Fee factor

of Vpbank’s e-banking servicesTable 4.5 Result of Cronbach’s Alpha test for the factor ResponivenessTable 4.6 Customer satisfaction with Responsiveness factor

of Vpbank’s e-banking servicesTable 4.7 Result of Cronbach’s Alpha test for the factor ReliabilityTable 4.8 Customer satisfaction with Reliability factor

of Vpbank’s e-banking servicesTable 4.9 Result of Cronbach’s Alpha test for the factor EmpathyTable 4.10 Customer satisfaction with Empathy factor

of Vpbank’s e-banking servicesTable 4.11 Result of Cronbach’s Alpha test for the factor AssuranceTable 4.12 Customer satisfaction with Assurance factor

of Vpbank’s e-banking servicesTable 4.13 Customer satisfaction with Assurance factor

of Vpbank’s e-banking services

with Vpbank’s e-banking servicesTable 4.15 Summary Item Statistics of the customer satisfaction with 6

factors

Table 4.20 ANOVA Verification for difference of gender in customer

satisfaction with Vpbank’s e-banking servicesTable 4.21 ANOVA Verification for difference of time using in customer

satisfaction with Vpbank’s e-banking servicesTable 4.22 ANOVA Verification for difference of age in customer

satisfaction with Vpbank’s e-banking services

vi

LIST OF FIGURES

Figure 2.1 Customer perception of quality and customer satisfationFigure 2.2 The Swedish Customer Satisfaction Marometer

Figure 2.3 American Customer Satisfaction Index (ACSI)

Figure 2.4 Gap model

Figure 2.5 The model of ServQual

Figure 2.6 Model of the customer satisfaction of Vpbank e-banking

services in the studyFigure 2.7 Research paradigm

Figure 3.1 Digital banking users and online transactions (users, %)Figure 3.2 Data gathering procedure

vii

LIST OF ABBREVIATIONS

Vpbank Vietnam Prosperity Joint Stock Commercial bankE-banking Electronic banking

ATM Automated Teller Machine

BCBS Basel Committee on Banking Supervision

SCSB Swedish Customer Satisfaction Barometer

ACSI American Customer Satisfaction Index

viii

LIST OF APPENDIX

Appendix 1

Questionnaire of the customer satisfaction of electronic banking services at Vietnam Prosperity Joint Stock commercial bank

Appendix 2 Vpbank organization chart

Appendix 3 Detailed Summary Item Statistics of the customer

satisfaction with Vpbank’s e-banking services

ix

ABSTRACT The title of the thesis: The customer satisfaction of electronic banking

services of Vietnam Prosperity Joint Stock Commercial bank (Vpbank)

Author: Hoang Anh, student of the Faculty of Foreign Languages, Banking

Abstract: The developnent of advanced technology has brought many

benefits and created new demands associated with electronic products includingelectronic banking services The main aim of this disertation is to develop thequality of electronic banking services of Vpbank based on studying the customersatisfaction with these services There are 4 objectives that this thesis will deal with.The first thing that this study focuses on is factors affecting customer satisfaction of

Electronic Banking services of Vpbank based on the model of Servqual inclusing

User Interface, Service Fee, Responsiveness, Reliability, Empathy, And Assurance.Secondly, the survey will test the effect of each factor on the satisfaction ofcustomers and assess customer satisfaction with Electronic Banking services ofVpbank Moreover, whether there is a difference in customer satisfaction levelaccording to factors such as gender, age, and time of service use will be evaluatedcarefully Finally, based on the statistics, recommendations to enhance the customersatisfaction as well as the quality of e-banking services of Vpbank will be made

The disertation is structured in five main chapters: (1) Introduction, refering

to objectives, scope and delimitation of the research; (2) Literature Review,introducing the background knowledge and models commonly used when assessingthe customer satisfaction with services; (3) Methodology, presenting researchdesign; (4) Results and Discussion; (5) Conclusion and Recommendations,discussing the conclusion and giving recommendations to better Vpbank’s e-banking services

1

CHAPTER I: INTRODUCTION 1.1.Introduction

Today, the Internet plays an important role in every aspect of life, asexemplified by online entertainment, online shopping, and the most recenttechnological improvement is the evolution of electronic banking which has a majorimpact on the financial market In order to meet the banking requirements quicklyand conveniently, the development of electronic banking services is viewed as aninevitable trend In Vietnam, commercial banks are also constantly innovating andapplying technological achievements in banking business to bring the best utilities

to customers and maintain the bank's development

Electronic banking is changing the banking industry, and also having manymajor effects on banking relationships According to Thulani et.al, 2009, “Internetbanking refers to systems that enable bank customers to get access to their accountsand general information on bank products and services through the use of bank’swebsite, without the intervention or inconvenience of sending letters, faxes, originalsignatures and telephone confirmations” Banking is now no longer one that has toapproach the branches in person to deposit, withdraw cash or request a statement ofaccounts Thanks to the appearance of e-banking system, any request or transaction

is processed online at any time and in anywhere through Internet, telephone or otherelectronic delivery As a result, banks have reaped various advantages, such as,saving time and reducing cost per transaction, enhancing customer service, etc

In the current competitive environment, customers are the decisive factor forthe bank's existence Therefore, banks are constantly aiming at how to bringcustomers the highest satisfaction when using the bank's electronic bankingservices

From these following analysis, the thesis of “The customer satisfaction of

electronic banking at Vietnam Prosperity Joint Stock commercial bank” was

chosen

1.2 Background of the study

Vietnam Prosperity Joint Stock Commercial Bank (Vpbank) was established

on August 12, 1993 After nearly 25 years of operation, VP Bank has developed its

network to 219 transaction points with the number of staff nearly 24,000employees By the end of 2017, VP Bank's charter capital has increased to VND15,706 billion.

The outstanding growth of VP Bank is shown vividly at the level ofexpanding the network of branches and transaction points nationwide, as well as thediversified development of sales and distribution channels with the slogan

“Customer is the focus” One of the effective distribution channels bringing Vpbankthe impressive growth is e-banking Moreover, in the time of non-cash payments,the Internet, and mobile devices as today, e-banking is a trend More people havetendency to use e-banking services instead of coming to the bank in person.Therefore, it is essential to improve the quality of e-banking products, and make e-banking become the main effective distribution channel

Vpbank has implemented a number of activities to enhance the quality of banking service and attract its customers to use these products However, as acustomer of e-banking system at VP bank, I realize that there are some limitations

e-of e-banking services at Vpbank

In order to better the e-banking system of Vpbank, in this study, a surveywas conducted for Vpbank’s e-banking users in order to assess the customersatisfaction of its e-banking services Thus, achievements and limitations of theseservices is expected to be found out, and basing on the results, recommendationswould be suggested to better these services

1.3 Objectives of the study

The topic will clarify some of the following issues:

Firstly, assessing customer satisfaction of Electronic Banking services ofVpbank based on the model of Servqual including in 6 factors (user interface,service fee, responsiveness, reliablity, assurance and empathy)

Secondly, studying of background characteristics of Vpbank’s customerswho are using electronic banking services

Thirdly, testing whether there is a difference in customer satisfaction levelaccording to factors such as gender, age, and time of service use

Finally, based on the results, giving recommendations to enhance the

customer satisfaction as well as the quality of e-banking services of Vpbank.

1.4 Significance of the study

In Vietnam, banking services are becoming essential in every aspect inmodern life; therefore, banking industry must be the leading field of informationtechnology to boost the development of economy It means that banking industryhas to find out new domestic and international payment methods which are quick,correct, and always in secure This is nowadays tendency

In such a competitive market today, improving e-banking system is the key

to the success of a bank because of the high develop of society and the increase inthe need of customers

The outcome of this study is expected to contribute considerably to thefollowing parties:

- The bank: The result of this study would help the bank understand truly

which factors affecting the customer satisfaction and thus assess accurately thequality of its e-banking services based on the customer satisfaction with theseservices After that, the bank can find out its limitations, achievements, and knowhow to better these services to attract customers

- The next researchers: The study can contribute to the research literature

review in the field of the customer satisfaction of a service for the next researchers,especially in the banking industry

1.5 Scope and delimitation

Scope of the study is the customer satisfaction of Vpbank’s electronicbanking services based on the statistics from questionnaire published in 4/2019

The scope of research sample is individual customers using e-bankingservices of Vpbank in Vietnam

1.6 Definition of terms

To have more deeply understanding about terms used in this study, it isessential for the researcher to define them as following:

- Electronic banking: electronic banking, or e-banking, includes the

provision of banking products and services through electronic banking channels.The most essential electronic delivery channels are the Internet, wireless

communication networks, automatic teller machines (ATMs), and telephonebanking (BCBS, 2001)

- Customer: an individual or business that buys other company’s goods or

services In this study, customers are people using banking services (Customer, 2019)

- Vpbank: Vietnam Prosperity Joint Stock Commercial bank, one of the

earliest-established Joint Stock Commercial banks in Vietnam (Introduction, 2019)

- Customer satisfaction: It is a measure of how products ans services

supplied by a company meet or pass customer expectation (“Customersatisfaction”, 2019)

- An automated Teller Machine (ATM): an electronic telecommunications

device that enables customers of financial institutions to perform financialtransactions, such as cash withdrawals, deposits, transfer funds, or obtainingaccount information at any time and without the need for direct interaction with thebank staff (“Automated Teller Machine”, 2019)

- Phone banking: a service that enables customers to access to banking

services and do a range of financial activities through telephone without coming tobranches in person Via pre-set function keys, customers are served automatically orthrough an operator (“Phone banking”, 2019)

- Internet banking: Internet banking means any user with a personal

computer and a browser can get connected to his/her bank’s website to perform any

of the banking functions All the services that the bank has allowed on the internetare displayed in menu, customers have to log in by their user names and password

to use these services (Internet banking (E-banking), 2002)

- Mobile banking: a service served by banks through an app that enables

banking customers to perform financial transactions such as checking accountbalance, transferring funds, making payments, etc remotely using smart phones,tablets, or other mobile devices (“Mobile banking”, 2019)

- SMS banking: a form of mobile banking It is a service provided by some

banks or other financial institutions to send message (also called notifications oralert) to customers’ mobile phones using SMS, or enable customers to performsome banking activities using SMS

SMS banking services often offer both push and pull messages Pushmessages are those that a bank sends out to customers’ mobile phone, without thecustomers’ request for information Pull messages are message sent by thecustomers to the bank using a mobile phone for obtaining information (“SMSbanking”, 2019)

- Vpbank ePay (VP Bank's online payment service): a service that allows

customers to use VP Bank's domestic debit card to pay for goods and servicesdirectly on websites linked to VP Bank such as booking hotel room, booking tour,buying a phone, buying products on group buying sites, and many other utilities.(Vpbank ePay, 2019)

- Vpbank Bankplus: VPBank Bankplus is the electronic banking service on

the phone provided by VP Bank to customers who are Viettel mobile networksubscribers VPBank Bankplus will help customers manage finance and bankingtransactions right on their mobile phones Customers can use VPBank Bankplusservice on any mobile phone in a non- Internet network environment with highsecurity for all transactions (Vpbank Bankplus, 2019)

CHAPTER II: LITERATURE REVIEW 2.1 Theoretical and conceptual framework

2.1.1 The quality of services

Since the 1930s, the quality in the manufacturing sector has been identified

as one of the competitve factors, while the quality of services has recentlydeveloped in the recent decades

From the customer perspective, the needs of customers are constantlychanging, so businesses must provide quality products and services to meet theirneeds and exceed their expectations

According to the defenition of the International and StandardizationOrganization ISO, quality is the ability to gather the charateristics of a product,system or process to meet the requirements of customers Thus, if a product forsome reasons is not accepted by its customers, it must be considered to be of poor

quality

Measuring the quality of tangible products is no problem, measuring thequality of services is a big problem The cause of this difficulty and complexity isdue to the nature of the service: intangibility, heterogeneity and indivisibility(Bateson, 1995)

Service quality is commonly defined as the difference between customerexpectations of service and percieved service If expectations are greater thanperformance, or the quality of service that customers received less than theirexpectations, it may be customer dissatisfaction

2.1.2 The customer satisfaction

There are many different views about customer satisfaction (Oliver, 1997).The level of customer satisfaction is seen as a comparison between expectationsbefore and after purchasing a product or service Customer satisfaction isconsidered as an attitude, (Yi, 1990)

Customer satisfation plays an important role in businesses Organizationsthat consistently satisfy their customers have higher retention levels and greaterprofitability due to increased customers’ loyalty, (Wicks & Roethlein, 2009) This isthe reason why it is essential to keep customers satisfied by trying to know exactlytheir expectations and perceptions of services offered by service providers

2.1.3 The relationship between the quality of services and the customer satisfaction.

Service quality and customer satisfaction are interrelated (Cronin and Taylor,1992) Service quality is what created before, deciding to customer satisfaction Thecasual relationship between these two factors is a key issue in most customersatisfaction studies If the quality is improved but not based on the needs of thecustomer, the customer will never satisfied with that service Therefore, when usingthe service, if customers feel that the service is of high quality, they will be satisfiedwith that service Conversely, if customers feel the service is of low quality, thedisatisfaction will appear

Alan Wison et al.,(2012) studied about customer perception of quality andcustomer satisfation as following:

Figure 2.1: Customer perception of quality and customer satisfaction

(Source: Alan Wison et al.,(2012))

2.2.1 Model of customer satisfaction index (CSI model)

Customer satisfaction index in a common way of assessing customersatisfation with a service or product in many nations in the world In 1989, Fornelland his colleagues in Michigan University helped Sweden bulid the first nation-level measurement system of customer satisfaction – Swedish CustomerSatisfaction Barometer (SCSB) The SCSB became a measurement instrument ofcustomer satisfaction and evaluations of quality of products and services usedwidely The basic model includes in perceived value, customer expectations,customer satisfaction, customer loyalty and customer conplaints

Figure 2.2: The Swedish Customer Satisfaction Marometer

(Source: Ronald van Haaften (n.d.))

In 1994, American launched American Customer Satisfaction Index (ACSI).This model contains of 6 factors: Perceived quality, Customer expectation,Perceived value, Customer satisfaction, Customer complaints, and customer loyalty.

Figure 2.3: American Customer Satisfaction Index (ACSI)

(Source: Ronald van Haaften (n.d.))

2.2.2 Customer satisfaction model ServQual of Parasuraman

Among many researchers of the quality of services, Parasuraman andcolleagues (1985) explored the definition of SERVQUAL after many researches.The first of SERVQUAL model contained of 22 items, used most commomly inmeasuring the quality of services This scale provies researchers with the ability tomeasure the distance between service performance and customer expectations of theservice through model 5 gaps

Figure 2.4: Gap model

(Source: Parasuraman et al (1985) )

The five-gap model is a general model, which is theoretical in terms ofservice quality To be practical, Parasuraman and colleagues tried to build a scaleused to assess the quality in the service sector that any quality service is perceived

by customers based on 5 dimensions, including: tangibles, reliability,responsiveness, assurance, and empathy

Figure 2.5: The model of ServQual

(Source: Parasuraman et al, 1988)

- Tangibles: Appearance of physical facilities, equipment, personel and

written materials

- Reliability: Ability to perform the promised service dependably and

- Responsiveness: Willingness to help customers and provide prompt service.

- Assurance: Employees’ knowledge and their ability to inspire trust and

confidence

- Empathy: Caring, easy access, good communication, customer

understanding, and individualized attention given to customers

2.3 Research paradigm

In this study, based on all the theory above, the model SERVQUAL waschosen to assess the customer satisfaction with e-banking services of Vpbank Therewere some changes to be suitable with the topic as following:

Figure 2.6: Model of the customer satisfaction of Vpbank e-banking services in the study

To have a smoothy research, it is necessary to have a clear research structure

Figure 2.7: Research structure

Customer satisfaction User

interface Service fee Responsiveness Reliability Empathy Assurance

CHAPTER III: RESEARCH METHODOLOGY 3.1 Locale of the study

The place where the survey conducted is in Hanoi, the capital of Vietnam.More specific, the questionnaire was answered by around 150 people living Hanoi,Vietnam using e-banking services of Vpbank

Vietnam Prosperity Bank has a total of 143 branches and transaction officeslocated in 12 districts of Hanoi City The Head office of Vpbank is located at 89,Lang Ha street, Dong Da district, Hanoi Branches and transaction offices areconcentrated mainly in Dong Da District (29 locations), Cau Giay District (20locations), Hai Ba Trung District (16 locations), Hoan Kiem District (15 locations),

Ba Dinh District (11 locations), etc

3.2 Research design

The research method used in the study is quantitative method This method isdone through surveys which rely on questioning a large number of people the samequestions to have many different responses These responses are collected, analyzedusing statistical techniques; thus the generalization about the whole population isrealized after analyzing

There are two main ways of survey: self-completed and administered surveys In this study, a self-completed questionnaire is used to getinformation for the analysis In the era of advanced technology today, researchersoften use web-based surveys to do research In this study, web-based surveysthrough Google Docs was also used to get information This makes administering asurvey faster, easier, and cheaper, and also helps the researcher have high responserates and completeness

Conducting survey through Google Docs.

Collecting statistics Analysing statistics and results.

Output Customer satisfaction level of VPbank's E- Banking services in order to help the bank find out achivements and limitations Since then, the bank wll improve services

The survey was divided into 2 periods The first step is piloting and testing.The most important problem of a survey is reliability; therefore, surveys are usuallypre-tested on a small sample before being used widely The second stage isofficially distributing the questionnaire to a large group of people to get statistics.

- Piloting and testing: The questionnaires were shared with a group of 15

people, who are one part of the study population, and their views on it wereobtained The primary purpose of doing pre-test is to evaluate the quality of themeasurement items in the survey After the pre-test, some of the wording of thequestions was replaced to avoid ambiguity Items that have the same meanings ormake people feel confused and difficult to understand were removed from thesurvey After all of things, they understand truly about the set of questions Anotherpurpose of the pre-test was to assure that the respondents could do the survey in lessthan 7 minutes because it is suitable for a respondent to have a good response If thesurvey was too long with too many questions, it would be likely that respondentsmay feel bored, and answer them quickly and careless, which leads the dataunworthy

- Distributing questionnaires widely to the study population: After

receiving feedback from the stage of piloting, the set of questions were fixed andstarted to collect statistics The questionnaire was also translated into Vietnamsesbefore publishing it widely The reason is that not everyone can read and understanddeeply English Once they do not understand truly the meaning of the statement, it

is likely that they can make wrong answers After translating, both the Vietnamesequestionnaire and English questionnaire were posted on Facebook, and other socialnetworking sites to access everyone who is using e-banking services

The most important problem in conducting survey is reliability of thequestionnaire According to Pallant (2007), the reliability of the items on thequestionnaire was assessed by using Crombach’s Alpha coefficients, which areconsidered a standard measurement of reliability of research instrument.Crombach’s Alpha coefficients examine the internal consistency of sacled items.Thanks to this measurement, how items related to each other and which item should

be removed or changed were presented clearly Alpha coefficient values can vary

from 0.0 to 1 The higher the value is, the more reliable the scale is In general, ifCrombach’s Alpha values are greater than or equal to 0.6, they are acceptable.

Based on the model of customer satisfaction SERVQUAL, and data frompiloting questionnaires, the paradigm for the study of customer satisfaction with e-banking services at Vpbank were chosen including 6 factors: Reliability,responsiveness, user interface, assurance, and empathy, and costs These are factorsused to assess the customer satisfaction with Vpbank’s e-banking services in thisresearch paper

3.3 Population, Sample and Sampling technique

* Population

Population of the study is banking customers who are using e-banking

services of Vpbank in Vietnam

Figure 3.1: Digital banking users and online transactions (users, %)

(Source: Result of operation report 2018)

According to the above report, by the end of 2018, there were 997,076people using e-banking services of Vpbank Therefore, the population size of thestudy were 997,076 people

* Sample

In this study, the questionnaires were given to a random group of people whoare using Vpbank’s e-banking services through web-based survey Google Docs.Therefore, sample of this survey was chosen randomly in the total number of peopleusing Vpbank’s e-banking services

* Sampling technique

Type of sampling

Within the scope of this study, convenience sampling should be employedbecause convenience sampling is considered as a technique of choosing data thatrelies on data collection from population members who are conveniently available

to participate in study The convenience sampling in this study is selected on thebasic of the availability of banking customers who the researcher can easilyapproach

After pluging the population size and the margin of error (0.08), the samplesize of was 157 people

157= 997,076

1+997,076∗0.082

3.4 Respondents of the study

The survey was conducted in nearly one month from 15 of March, 2019 to

11 of April, 2019 through Google Docs Respondents of the study are all customerswho are using Vpbank’s e-banking services (SMS banking, internet banking,mobile banking, Vpbank ePay, and Vpbank Bankplus) in Hanoi In this study, there

is no difference about the age, gender, profession, and time of service use ofcustomers surveyed Therefore, respondents may be men, women and another sexwith different jobs They can also be new e-banking customers or loyal customers

3.5 Research instruments

n: the sample sizeN: the population sizeE: the margin of error1: a constant value

The instrument used in this research is self- completed survey through GoogleDocs, which was conducted in the period of 3 weeks from 20/3 to 10/4/ 2019.

The questionnaire is a set of 33 close-ended questions devided into 2 smallparts Part I is to get personal information of customers with 4 questions of gender,age, profession, and time of using services Part 2 includes 29 questions to researchthe customer satisfaction with Vpbank’s e-banking services (4 questions of Userinterface, 4 questions of Service fee, 5 questions of Responsiveness, 4 questions ofReliability, 4 questions of Assurance, 4 questions of Empathy and 4 questions ofGeneral satisfaction)

Table 3.1: Questionnaire structure Suggested questionnaire includes 8 part with 34 items

3.6 Data Gathering procedures

The survey was conducted and distributed widely through Google Docs Thequestionnaire was available online about 1 month until it got enough responses Thequestionnaire was posted on Facebook and other social networking sites such asInstagram In order to access more people using e-banking services of Vpbank, thesurvey was posted and shared on many groups related in banking on Facebook

Besides, messages were also dropped privately to friends in the friendlist of theresearcher to ask them to share the survey with everyone.

Figure 3.2: Data gathering procedure

In this study, the database was coded as following:

I1, I2, I3, I4 = The factor “User Interface” from sentence 1 to 4 respectively.F1, F2, F3, F4 = The factor “Service Fee” from sentence 1 to 4 respectively.Res1, Res2, Res3, Res4, Res5 = The factor “Responsiveness” from sentence

The scale used in the study was Likert Scale 5 points:

of the total number of variables were acceptable to be in the database Responseswith almost all the same answers for all questions were removed to make sure thatthe quality of collected statistics was good enough

3.7.4 Primary data

After entrying data, coding data, and cleaning data, the good and valuabledatabase was ready for analysis

3.7.4.1 Cronbach’s Alpha Coefficient

In this study, Cronbach’s Alpha was used to assess the reliability of eachdimension of the measurment Alpha coefficient values can vary from 0.0 to 1 Thehigher the value is, the more reliable the scale is Cronbach’s Alpha at least equal to0.6 is acceptable about the reliability (Nunnally and Bernstein, 1994) Besides, allitems in the scale must have Corrected item / Total correlation at least equal to 0.3

and greater than 0.3 (Nunnally, 1978)

3.7.4.2 Mean

Mean computation was used to analyze the customer satisfaction with banking services In this study, this tool was used for 29 items in part II of thequestionnaire

e-The results of Mean computation were analyzed based on the following table:

Table 3.2: Scale of Mean

No extent

1 5 4.21 – 5.0 Strongly agree/ Very great extent

3.7.4.3 Frequencies

Frequency was used for 4 items in part I of the questionnaire in order toanalyze background charateristics of customers This tool would show thepercentage of each category of each question such as the percentage of men,women, etc particpating in the survey Therefore, the researcher would analyzebackground charateristics of customers easily

3.7.4.4 ANOVA

ANOVA were the last tool used to treat primary data In this study, ANOVAtool was applied for 3 factors including gender, age, and time of service using inorder to testing whether there is difference in the customer satisfaction levelaccording these above factors

CHAPTER IV: RESULTS AND DISCUSSION 4.1 Results

4.1.1 Evaluation of the customer satisfaction with Vpbank’s e-banking services through Descriptive analysis

* User interface

Table 4.1: Result of Cronbach’s Alpha test for the factor User Interface

Reliability Statistics

Cronbach'sAlpha N of Items

Item-Total Statistics

Scale Mean ifItem Deleted

ScaleVariance ifItem Deleted

CorrectedItem-TotalCorrelation

Cronbach'sAlpha if ItemDeleted

(Source: Statistics from SPSS)

The result of Cronbach’s Alpha test showed that Cronbach’s Alpha of thefactor User Interface is equal to 0.802 greater than 0.6, and all items in the scalehave the rate Corrected item - Total Correlation greater than 0.3 Therefore, themeasurement of the first factor User interface is reliable enough for the research

Table 4.2: Customer satisfaction with User Interface factor of

Vpbank’s e-banking services Descriptive Statistics

(Source: Statistics from SPSS)

There were differences in the customer satisfaction with each item offactor User Interface Based on the table 4.2 above, it is obviously seen that allitems were righly assessed at the level of “Agree” according to the scale ofMean value (Table 3.2) However, customer satisfaction level of the first threeitems (Mean values are 3.50, 3 72, 3.75, respectively) are far higher than thatthe item I4 (Mean value is 3.38)

* Service Fee

Table 4.3: Result of Cronbach’s Alpha test for the factor Service Fee

Reliability Statistics

Cronbach'sAlpha N of Items

Item-Total Statistics

Scale Mean ifItem Deleted

ScaleVariance ifItem Deleted

CorrectedItem-TotalCorrelation

Cronbach'sAlpha if ItemDeleted

(Source: Statistics from SPSS)

In terms of the factor Service Fee, the Cronbach’s Alpha is equal to 0.791,which is greater than 0.6 Therefore, this scale is acceptable Moreover, the rate ofall 4 items are 0.734, 0.689, 0.649, 0.365 respectively, which are all greater than0.3 Although comparing to other items, item F4 has lower correlation with otheritems (the rate of Corrected Item/ Total Correlation lowest (0.365)), it may beconcluded that measurement for the factor of Service Fee is reliable enough toconduct the survey

Table 4.4: Customer satisfaction with Service Fee factor

of Vpbank’s e-banking services Descriptive Statistics

(Source: Statistics from SPSS)

The first three items of the factor Service Fee were evaluated at the level of

“Agree” according to the scale of Mean value (Table 3.2), with the mean valueequal to 3.62, 3.65, 3.66 respectively While customers relatively satisfied withthree aspects F1, F2, and F3 of the factor Service Fee when using Vpbank’s e-banking services, they rated the item F4 lowest out of 4 items at the level of neutral