LV Thạc sỹ_Customer satisfaction for brokerage service at VNS securities company

The objectives of this research are to overview VNS Securities Company’sbrokerage service, investigate customer satisfaction on brokerage service and findout what factors affecting to cu

A work of this nature could not have been produced without assistant of some sort Iwish to therefore acknowledge a few people and institution that helped inrealization of this research work

First and foremost, I extend my gratitude to PhD …

Last but not least, I would like to express my deep gratitude to my family who provide continuous supports to me during my learning process and the course

of this research study

VNSC: VNS Securities Company

HNX: Hanoi Stock Exchange

SERVQUAL: Service Quality

SSI: Saigon Securities Incorporate

SERVPERF: Service Performance

HoabinhSC: Hoa Binh Securities Company

PSI: Petrol Securities Company

FPTS: FPT Securities Company

SHS: Saigon – Hanoi Securities Company

LIST OF FIGURES

Figure 1.1: Research process 12

Figure 2.1: Kano Model of customer satisfaction 25

Figure 2.2: American Customer Satisfaction Index – ACSI 26

Figure 2.3: European Customer Satisfaction Index – ECSI 26

Figure 2.4: Research Model 28

Figure 3.1: Organizational Structure 31

Figure 3.2: Trading procedure at Brokerage house 34

Figure 3.3: Revenue from brokerage service 35

Figure 4.1: Sample distribution based on sex 36

Figure 4.2: Sample distribution based on age 37

Figure 4.3: Sample distribution based on investment period 37

Figure 4.4: Sample distribution based on investment capital 38

Figure 4.5: Tangible Attributes 42

Figure 4.6: Assurance Attributes 44

Figure 4.7: Reliability Attributes 45

Figure 4.8: Responsiveness Attributes 47

Figure 4.9: Empathy Attributes 48

Figure 4.10 Satisfaction measurement 49

LIST OF TABLES

Table 4.1 Correlations matrix showing relationship amongst the various variables 39Table 4.2: Model Summary(b) 40Table 4.3: ANOVA(b) 40Table 4.4: Coefficients(a) 41

TABLE OF CONTENT

ACKNOWLEDGEMENT 1

ABREVIATIONS 2

EXECUTIVE SUMMARY 8

Chapter 1 INTRODUCTION 10

1.1 Rationale 10

1.2 Objectives 11

1.3 Research questions 12

1.4 Research Methodology 12

1.4.1 Research process 12

1.4.2 Source of data 13

1.4.3 Research method 13

1.4.4 Data analysis 14

1.5 Scope of research 15

1.6 Research structure 15

Chapter 2 THEORETICAL BACKGROUND ON CUSTOMER SATISFACTION OF BROKERAGE SERVICE 16

2.1 Brokerage service 16

2.1.1 Definition of brokerage service 16

2.1.2 Characteristics of brokerage service 16

2.2 Customer Satisfaction in brokerage service 18

2.2.1 Definition of customer satisfaction 18

2.2.2 Attributes of customer satisfaction for brokerage service 19

2.2.2.1 Tangible attributes 19

2.2.2.2 Reliability attributes 20

2.2.2.3 Assurance attributes 20

2.2.2.4 Responsiveness attributes 21

2.2.2.5 Empathy attributes 21

2.2.3 Factors influence on customer satisfaction for brokerage service 22

2.3 Customer satisfaction assessing model for brokerage service 23

2.3.1 Kano Model of customer satisfaction 23

2.3.2 Customer satisfaction Index 25

2.3.3 SERVPEF Model 27

2.3.4 Conceptual framework 28

Chapter 3 OVERVIEW OF VNS SECURITIES COMPANY 30

3.1 General introduction 30

3.2 Business activities 32

3.2.1 Brokerage service 32

3.2.2 Custody 33

3.2.3 Shareholder list management 33

3.2.4 Corporate financial advisory 33

3.2.5 Trust securities auction 33

3.3 Process of brokerage services delivery 34

3.4 Overview of VNS’s Brokerage service 34

Chapter 4 CUSTOMER SATISFACTION AT VNSC’S BROKERAGE SERVICE 36

4.1 Empirical findings 36

4.1.1 Statistical descriptive 36

4.1.2 Hypotheses testing 38

4.2 Assess the important of customer satisfaction attributes on VNSC’s brokerage service 42

4.2.1 Tangible Attributes 42

4.2.2 Assurance Attributes 44

4.2.3 Reliability Attributes 45

4.2.4 Responsiveness 46

4.2.5 Empathy Attributes 47

4.3 Evaluate overall customer satisfaction on VNSC’s brokerage service 49

4.4 Summary 50

4.4.1 Achievements 50

4.4.2 Shortcomings 50

4.4.3 Reasons for dissatisfaction on VNSC’s brokerage service 51

Chapter 5 RECOMMENDATION TO IMPROVE CUSTOMER SATISFACTION ON VNSC’S BROKERAGE SERVICE 53

5.1 The VNS’s Development Strategy 53

5.2 Recommendations to improve customer satisfaction on VNSC’s brokerage service 54

5.2.1 Improving assurance, reliability, responsiveness 54

5.2.2 Improving empathy 55

5.2.3 Improve Tangibles 57

5.2.4 Other recommendations 57

SUMMARY 59

LIST OF REFERENCE 60

EXECUTIVE SUMMARY

Customer satisfaction is increasingly recognized as a main pillar for success in thebusiness environment and also the key to survive It is necessary for the company tosatisfy customer in order to capture market share and improve profitability In otherword, customer satisfaction helps the company to keep current customer and attractmore clients Thanks to that, the company’s profit may increase

The objectives of this research are to overview VNS Securities Company’sbrokerage service, investigate customer satisfaction on brokerage service and findout what factors affecting to customer satisfaction and give recommendations andsolutions to improve customer satisfaction on VNSC’s brokerage service

The search methodology is divided into two main parts In the first part, literaturereview of the satisfaction and attributes affecting satisfaction was conducted inorder to get better understanding of customer management and apply an appropriatecustomer satisfaction measurement model in the case of VNS In the second part,data for analysis is collected through two sources: primary data from in depth-interview and survey; secondary data from newspaper, internet, VNSC’s internalreports

In depth-interview was conducted with some customers and staffs from brokeragedepartment As for customer survey, a questionnaire was designed and sent out tosample of 200 respondents in Hanoi The quantitative analysis was taken byapplying SERVPERF model Excel and SPSS software packages were used as thetool for statistical analysis

Result of quantitative and qualitative analyses are interesting and useful forimproving customer satisfaction in VNSC’s brokerage service Main findings are asbelow:

- Customer satisfaction was mainly affected by five component of servicequality In which responsiveness has the highest impact (0.328), next was

reliability (0.305) The lowest effect was assurance component (0.153).Empathy and tangible also were concerned by customers with betacoefficient of 0.253 and 0.156 respectively

- Customers felt satisfied with only reliability component (4.18) and gaveneutral marks for other ones It meant that they were not really satisfied withtangible, responsiveness, assurance and empathy

- Total customer satisfaction at the company’s brokerage service was not high(3.83) Due to some the following reasons:

The company’s equipments and facilities are not really modern

The company has not enough equipment to serve investors

Employees do not wear uniform when dealing with customers

Website’s information is insufficient and not updated

Extra services have no difference and do not meet customers’requirements

Employees are lack of working skills and not really good atcommunication Moreover, they do not have enough professionalknowledge to consult customers

- Periodic assessment on staffs, changing the way of recruitment, etc

- Other recommendations include restructure the Company, recruitment, applyISO

The recommendations help the company survive the competition, retaincustomers and in the long run increase profitability

VNS is a medium size company, with total charter capital of 160 billionsVietnam Dong Like other small and medium securities companies, turnoverfrom brokerage service hold a large proportion in the Company’s income.According to the data from Accounting Department over last years, turnoverfrom this activity contributed up to 60% to the Company’s turnover In otherword, it is the main force brings the main profit for the Company.

Besides, customers can assess the Company via quality of brokerage servicethrough some activities such as investment consultancy, serving attitude ofbrokers, information system for trading online…

Moreover, the competiveness in Vietnam stock market is more and more severe

In 2000, the number of securities companies was 5, and this number has risenevery year, but in slow pace in period from 2000 to 2005, just 14 companies atthe end of 2005 with total amount of trading accounts about 31,316 accounts.Until the end of 2006, with exploration of Vietnam stock market, StateSecurities Commission of Vietnam received much more application forestablishing securities company The result was the numbers of companies hasrisen up to 64 in 2007 and currently is more than 100 Due to the high level ofcompetition, VNS Company is losing existing customers to their rivals as theresult of successful attempts to entice customers away thanks to their betterservice quality At the same time, dissatisfaction drives customers away and thefact is that 20% of the Company’s customers are leaving each year

This is really a considerable number It reflects that service quality of VNSC hasnot met the expectation of customers Therefore it is necessary for the Company

to improve its service quality especially in brokerage service to satisfycustomers much more since satisfying the customers not only help VNSC keepcurrent customers, but also help the Company draw potential customers due toword-of-mouth advertising from current customers Those customers are reallyhappy with service quality of the company will tell others, so when someone has

an intention to open an account, he or she will think of the company

With the important roles of satisfying customers in both creating loyalty anddrawing new customers in order to create profits for the Company, I havedecided to choose the topic “Customer satisfaction for Brokerage service at VNSSecurities Company”

1.2 Objectives

VNSC as has recently faced more and more difficulties in attracting newcustomers as well as keep current customers due to growing competition fromrivals who give preferential policies and better condition for customers.Moreover, the Company is confronting with the fact that high proportion ofcustomers leaving each year Therefore, this research is carried out to analyzethe current practices to satisfy VNSC’s customers, the factors that effectcustomer satisfaction and to find out solutions to raise more satisfaction forcreating customer loyalty

The specific objectives of the thesis are as followed:

Finding dimensions that affect customer satisfaction

Analysis and assess the customer satisfaction on VNSC’s brokerageservice

Recommendations in order to improve customer satisfaction for theCompany

1.3 Research questions

- What are the key drivers of customer satisfaction on brokerage service?

- What did VNSC do to satisfy the customers?

- How did the customers satisfy with VNSC’s brokerage service?

- How to improve the customer satisfaction?

1.4 Research Methodology

1.4.1 Research process

Figure 1.1: Research process

Source: Designed by author

1.4.2 Source of data

The data including secondary data and primary data will be collected as below:Secondary data is obtained through all sources as news paper, journals, website,annual reports, and review, so on

The author has used questionnaire survey with customers and in-depth interviewwith staffs in related departments in order to collect primary data The objective

of questionnaire survey is to obtain customers’ feeling and assessment aboutVNSC’s service quality The results from in-depth interviews were noted and tocomplement for survey

- Number of current customers: 150

- Number of customers who has leaved VNSC: 50

The questionnaires are designed with its base is SERVPERF concept A total of

22 attributes were categorized under five dimensions as below:

about the customer’s needs and how they satisfy with the Company’s brokerageservice.

Qualitative method is in-depth interviews that were conducted with VNS’scustomers and staffs Number of customers and staffs for interviewing will be 20and 10 respectively Information selected from interviews will supplement thedesign of questionnaires and findings gained from questionnaire survey

1.4.4 Data analysis

We use both quantitative and qualitative approaches in our analysis However

we focus more on quantitative methods According to Creswell (1994),quantitative research focuses on examining a problem based on testing a theoryand analysing it using statistical techniques In order to investigate thehypothesised relationships in this study, we employ statistical techniques usingcorrelation, and regression analyses All measurements were at 5% level ofsignificance We also made use of descriptive statistics as well such as averagesand frequencies using Statistical Package for the Social Sciences (SPSS) version11.5

Further in data analysis, the author treated the Likert’s measurements as intervaldata making use of parametric statistics Hence the author applied Pearson’scorrelation coefficient which is a parametric measure of correlation rather thanspearman ranked correlation which does not assume normality in the distribution

 Explore Factor Analysis (EFA) was used to test the discrimination value ofvariables Variable has Factor loading smaller than 0.4 (<0.4) will beabstracted Extraction method applied is Principle Component Analysis with

varimax method, eigenvalue is higher than 0.1 (>0.1) Scale is accepted whenTotal extracted-variance exceeds 50%

 Testing research model by Linear Regression Method with significant of 5%

Chapter 2: Theoretical Background

Provides theoretical background of satisfaction, definition and measurement ofsatisfaction

Chapter 3: Overview of VNS Securities Company

Provides overview of the Company, organization structure, services,performance and overview the company’s brokerage service

Chapter 4: Customer Satisfaction at VNS’s Brokerage Service

Figure out factors that make the customer feel satisfied based on attributes ofservice quality and based on customers’ view

Analysis factors that effects the customers’ satisfaction

Chapter 5: Recommendations to improve to improve customer satisfaction

on VNSC’ brokerage service

Chapter 2

OF BROKERAGE SERVICE

2.1 Brokerage service

2.1.1 Definition of brokerage service

In the broadest sense, brokerage activities in the field of securities includeactivities such as marketing, securities investment consultancy, signed a contract

to provide customer service, open securities accounts for customers, receivecustomer's purchase order, payment and settlement transactions, providingcertificates of securities In narrow meaning, a securities brokerage service is astock trading activity in which the security company is on behalf of client toconduct all transaction through the trading mechanism on the Stock Exchange,

or OTC market that the customer will be responsible for the results oftransaction Brokers just carry out transactions as customer’s orders and enjoythe service fee, they are not at risk from such transactions

Brokerage is also understood as a representative - on behalf of customers to buy

or sell a certain stock

In general, brokerage is an activity where the company acts as an intermediary tosell and buy shares on behalf of the company’s customers Beside there, duty inbrokerage service includes collecting and valuating information both ondomestic or foreign stocks market, government bonds, information abouteconomy on that basis, gives appropriate advice to customers

2.1.2 Characteristics of brokerage service

Brokerage service is like any other services which have below characteristics:

Services are activities performed by the provider, unlike physical products theycannot be seen, tasted, felt, heard or smelt before they are consumed Since,services are not tangibles, they do not have features that appeal to the customerssenses, their evaluation, unlike goods, is not possible before actual purchase andconsumption The marketer of service cannot rely on product-based clues thatthe buyer generally employs in alternative evaluation prior to purchase So, as aresult of this, the services are not known to the customer before they take them

Inseparability

Production and consumption of many services are inseparable e.g delivering alecture Quality in services often occurs during service delivery whereas quality

in products is usually engineered at the manufacturing plant and delivered intact

to the customer Unlike goods producers, service providers do not have thebenefit of a factory serving as a buffer between production and consumption.Service customers are often in the service factory, observing and evaluation theproduction process as they experience the services

Perish ability

Services are deeds, performance or act whose consumption take placesimultaneously; they tend to perish the absence of consumption Hence, servicescannot be stored The services go waste if they are not consumed simultaneouslyi.e value of service exists at the point when it is required

The perishable character of services adds to the service marketers problems Theinability of service sector to regulate supply with the changes in demand; posesmany quality management problems

Variability

Brokerage services, as performances are difficult for customers to evaluate prior

to purchase The criteria customers use to evaluate service quality may be moredifficult for the Company to comprehend How customers evaluate investment

services offered by a stockbroker is more complicated and varied than how theyevaluate trouser materials The only criteria that count in evaluating servicequality are defined by customers Service-quality perceptions stem from howwell a provider perform customers’ expectations about how the provider shouldperform.

Simultaneity

The fact that brokerage services are created and consumed simultaneously and,thus, cannot be stored is a critical feature in the management of services Thisinability to inventory services precludes using the traditional manufacturingstrategy of relying on inventory as a buffer to absorb fluctuations in demand The simultaneous production and consumption in services also eliminates manyopportunities for quality-control intervention A product can be inspected beforedelivery, but services must rely on other measures to ensure the quality ofservices delivered Customers’ presence in these facilities and their participation

in the service process expose them to errors

2.2 Customer Satisfaction in brokerage service

2.2.1 Definition of customer satisfaction

Customer satisfaction is increasingly recognized as a main pillar for success inthe business environment and also the key to survive Organization has to knowhow satisfied customers feel Due to that, the word “satisfaction” is central tomany definitions and in marketing context, it is used to have many “specific”meanings Anders Gustafsson, Michael D.Johnson, & Inger Roos (2005) broughtcustomer satisfaction definition as a customer’s overall evaluation of date Thissatisfaction has positive influences on retaining customers among differentvariety of services and products In service enterprise, service quality directlyaffects customer satisfaction

Kotler (2007) interpreted “Satisfaction as a person's feelings of pleasure ordisappointment resulting from comparing a product's perceived performance (oroutcome) in relation to his or her expectations”

Brown (1992): The state in which customer needs, wants and expectationsthroughout the product or service's life are met or exceeded resulting in repeatpurchase, loyalty and favorable worth-of mouth.

Bruhn (2003): Customer satisfaction is an experience-based assessment made bythe customer of how far his own expectations about the individual characteristics

or the overall functionality of the services obtained from the provider have beenfulfilled

In general, satisfaction is the degree of emotional states from comparison ofperception gained from the products and services with expectation Andsatisfaction level is a function of the difference between perception andexpectations

S (satisfaction) = P (perception) - E (expectation)

Relationship between S, P, E is a determinant factor in all aspects of service Ifthe perceived performance is less than expectations, the customer will bedissatisfied On the other hand, if the perceived performance exceedsexpectations, the customer will be satisfied, highly satisfied or delighted.Otherwise, if the perceived expectations are met with performance, customersare in an indifferent or neutral stage

2.2.2 Attributes of customer satisfaction for brokerage service

2.2.2.1 Tangible attributes

Tangible include the physical evidence of the company where supplies services

It involves: Physical facilities, Appearance of personnel, Office is equipped withmodern facilities

As for brokerage service, Tangible attributes include:

The company has modern-looking equipment

The company’s physical facilities are visually attractive

Employees are neat in appearance

Adequate facilities for customers

Website: easy to access, updated information

2.2.2.2 Reliability attributes

Reliability: involves consistency of performance and dependability It meansthat the firm performs the service right the first time It also means that the firmhonours its promises Specifically it involves:

- Keeping records correctly

- Performing the service at the designated time

As for brokerage service, Reliability attributes include:

Keep promised words

Sincere interest in solving a customer’s problem

Perform the service right the first time

Provide services at the time being promised to do so

Insist on error-free record

2.2.2.3 Assurance attributes

Assurance: The knowledge and courtesy of employees and their ability toconvey trust and confidence:

- Making customer feel safe in their transactions

- Employees who are consistently in courteous

- Employees who have the knowledge to answer customer question

As for brokerage service, Assurance attributes include

The behaviour of employees will instil confidence in customer

Customer will feel safe in their transaction

Employee will be consistently courteous with customers

Employee will have knowledge to answer customers’ question

2.2.2.4 Responsiveness attributes

Responsiveness shows the willing to help customers and to provide promptservice of the company as well as its staffs Responsiveness includes:

- Giving prompt service

- Willing to help customer

- Readiness to respond to customer’s request

As for brokerage service, responsiveness attributes include:

Tell customers when exactly services will be performed

Give prompt service to customers

Be willing to help customers

Never be too busy to respond to customers’ request

2.2.2.5 Empathy attributes

Empathy involves the provision of caring, individualized attention to customers

It means:

- Giving customers individual attention

- Employees who understand the need of their customers

- Convenient business hours

As for brokerage service, empathy attributes include:

Give customers individual care and attention

Have operating hours convenient to all customers

Have employees who give customers personal attention

Have the customers’ best interest at heat

Understand customers’ specific needs

2.2.3 Factors influence on customer satisfaction for brokerage service

For customers, quality of service is expressed via its outstanding featurecompared to their other services This preeminent helps quality of service tobecome a competitive advantage of service providers The assessment of thesuperior service quality is influenced greatly by customers’ perception Thisrelationship has great significance for evaluating the quality of service fromcustomers in marketing research activities and customer satisfaction

 Specific feature

Quality service includes the most core and quintessential value that essential increating the specific feature of products and services Therefore, service orproduct of high quality will contain more many "outstanding features" than lowquality of services This distinction is associated with tangible or intangibleidentifying remarkable attributes of products and services Thanks to thischaracteristic, customer can identify the Company’s quality of service differentfrom that of its competitors However, it is really difficult in define the corefeatures of the service fully and accurately in practice As a result, this featurehas no absolute value but only relatively one to help knowing the quality ofservices in specific cases easier

2.3 Customer satisfaction assessing model for brokerage service

2.3.1 Kano Model of customer satisfaction

Professor Kano discovered Kano Model to determine customer satisfactionbased on four identifiers: threshold attributes, performance attributes, andexcitement attributes and indifferent attributes These identifiers can be used tomeasure customer satisfaction of a product as well as services

A competitive product meets basic attributes, maximises performancesattributes, and includes as many “excitement” attributes as possible at a cost themarket can bear

Threshold Attributes

Threshold (or basic) attributes are the expected attributes or “musts” of aproduct, and do not provide an opportunity for product differentiation.Increasing the performance of these attributes provides diminishing returns interms of customer satisfaction, however the absence or poor performance ofthese attributes results in extreme customer dissatisfaction

Threshold attributes are not typically captured in QFDs (Quality FunctionDeployment) or other evaluation tools as products are not rated on the degree towhich a threshold attribute is met, the attribute is either satisfied or not

Performance Attributes

Performance attributes are those for which more is generally better, and willimprove customer satisfaction Conversely, an absent or weak performanceattribute reduces customer satisfaction Of the needs customers verbalise, mostwill fall into the category of performance attributes These attributes will formthe weighted needs against which product concepts will be evaluated The pricefor which customer is willing to pay for a product is closely tied to performanceattributes

Excitement Attributes

Excitement attributes are unspoken and unexpected by customers but can result

in high levels of customer satisfaction, however their absence does not lead todissatisfaction Excitement attributes often satisfy latent needs – real needs ofwhich customers are currently unaware In a competitive marketplace wheremanufacturers’ products provide similar performance, providing excitementattributes that address “unknown needs” can provide a competitive advantage.Although they have followed the typical evolution to a performance then athreshold attribute, cup holders were initially excitement attributes

Indifferent Attributes

Products often have attributes that cannot be classified according to the KanoModel These attributes are often of little or no consequence to the customer,and do not factor into consumer decisions

Figure 2.1: Kano Model of customer satisfaction

Source: Kano (1984)

2.3.2 Customer satisfaction Index

Customer satisfaction Index include the factors or variables, each factor iscomposed from more specific indicators (items) of the product orservice Customer satisfaction is defined as a comprehensive evaluation of theuse or after-services of the business and this is at the core of the CSImodel Around these variables is a system of causal relationships (cause andeffect) from the initial factors such as expectations of customers, the image ofenterprises and products, perceived quality and perceived value of products orservices to the outcome variables of satisfaction, such as customer loyalty orcustomer complaints

Figure 2.2: American Customer Satisfaction Index – ACSI

Source: ACSI (2008)

In the model of American satisfaction index (ACSI), the Perceived value isaffected by perceived quality and customer expectations Meanwhile, customerexpectations have a direct impact on the Perceived quality In fact, whencustomer’s expectations are higher, the customers’ standard of perceived qualityfor products is also higher or vice versa Thus, requirements of quality productand service provided to customers need to be ensured and fulfilled based on theirsatisfaction Customer satisfaction is created from perceived quality,expectations and Perceived value, if the quality and perceived value higher thanexpectations will create customers’ loyalty Otherwise, there will be a complaintabout products that they used

Figure 2.3: European Customer Satisfaction Index – ECSI

Source: ECSI Technical committee (1998)

Perceived value

Customer Satisfaction

Complaint

Expectations

Perceived value

Customer satisfactio n Perceved quality

European Satisfaction index model (ECSI) has some specificdifferences Compared to the ACSI, the image of the product, the brand has adirect impact to customers’ expectations Meanwhile, customer satisfaction is as

a result of overall impact of four elements image, perceived value, perceivedquality of both products and service Usually, ACSI is applied in public sectorwhereas ECSI is applied in measurement of products, the sector (Figure 2).Clearly, the strength of this approach is that it immediately shifts the consumerexperience and creates conditions for studying cause and effect relationshipbetween the components of satisfaction and customer loyalty Therefore, thefirst goal of the CSI approach is to explain the customer’s loyalty with aparticular product or a corporation in specific or with a country in generalthrough customer satisfaction index when it affected directly or indirectly by theimage, expectations, perceived quality (product or service) and perceived value

of products and services

2.3.3 SERVPEF Model

Cronin and Taylor (1992) investigated the conceptualization and measurement

of service quality and its relationship with consumer satisfaction and purchaseintentions They compared computed difference scores with perception toconclude that perceptions only are better predictor of service quality

They argued on the framework of Parasuraman et al (1985) with respect toconceptualization and measurement of service quality and developedperformance of service quality called SERVPERF However, in their argumentwith SERQUAL Model of Parasuraman, they think that SERVQUAL modelconfounds satisfaction and attitude They stated that ‘performance’ rather than

‘perception-expectation’ determines service quality and provide substantialevidence to show expectations have little or no impact on the evaluation ofconsumers, particularly in relation to service quality (Cronin and Taylor, 1992).Nevertheless, dimensions of service quality in SERPERF Model also are based

on 5 dimensions of SERVQUAL model including Tangible, Reliability,Responsiveness, Assurance and Empathy

2.3.4 Conceptual framework

Based on the narrow down scope of literature review above, the relationshipbetween service quality and customer satisfaction can be shown in figure below.The five service quality dimensions have been selected from SERPREF model

In the SERPREF model, 22 statements measure the performance across the fivedimensions For each statement, the expectation and the experience of acustomer are determined

The researcher suggested that the five service quality dimensions identified byparasuraman et al (1988) can be applied in the stock market All five thesedimensions are considered as critical factors in measuring customer satisfaction

Figure 2.4: Research Model

H1: There will be a positive relationship between Tangible and overall customersatisfaction That means the higher tangible facilities of company areappreciated by customer, the higher satisfaction is and vice verse

H2: There will be a positive relationship between Reliability and overallcustomer satisfaction

Service

Quality

Dimensions

(SERVPERF)

H3: There will be a positive relationship between Responsiveness and overallcustomer satisfaction.

H4: There will be a positive relationship between Assurance and overallcustomer satisfaction

H5: There will be a positive relationship between Empathy and overall customersatisfaction

The model of customer satisfaction can be generalized as below:

Customer

β0 + β1*Tangibles + β2*Reliability +Tangibles + β2*Tangibles + β2*Reliability +Reliability + β3*Tangibles + β2*Reliability +Responsiveness + β4*Tangibles + β2*Reliability +Assurance + β5*Tangibles + β2*Reliability +Empathy

VNS was established and operated under the License number 69/ GPHDKD issued on 28/08/2007 by the State Securities Commission, toengage in the following activities: Securities Brokerage; SecuritiesProprietary Dealing; Securities Investment Advisory; Securities Custody.

UBCK-VNS has received the Custody Membership Certificate number64/GCNTVLK dated 13/09/2007 by the Securities Custody Centre

Registered Capital: VND161.000.000.000 (Vietnamese Dong one hundredand sixty one billions)