(Luận văn thạc sĩ) enhancing customer satisfaction on credit service quality for SMEsA research at JSC bank for foreign trade of vietnam – operation center branch

Hanoi – 12/2017 VIETNAM NATIONAL UNIVERSITY HANOI SCHOOL OF BUSINESS *** *** *** HSB-MBA PROGRAM NGUYEN HOAI PHUONGMASTER THESIS ENHANCING CUSTOMER SATISFACTION ON CREDIT SERVICE QUA

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Hanoi – 12/2017

VIETNAM NATIONAL UNIVERSITY

HANOI SCHOOL OF BUSINESS

*** *** ***

HSB-MBA PROGRAM

NGUYEN HOAI PHUONGMASTER THESIS

ENHANCING CUSTOMER SATISFACTION ON CREDIT SERVICE

QUALITY FOR SMES: A RESEARCH AT JSC BANK FOR FOREIGN

TRADE OF VIETNAM – OPERATION CENTER BRANCH

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: NGUYEN HOAI PHUONG : HSB-MBA 9 : PhD Ngo Vi Dung

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VIETNAM NATIONAL UNIVERSITY

HANOI SCHOOL OF BUSINESS

*** *** ***

HSB-MBA PROGRAM

NGUYEN HOAI PHUONG MASTER THESIS

ENHANCING CUSTOMER SATISFACTION ON CREDIT SERVICE

QUALITY FOR SMES: A RESEARCH AT JSC BANK FOR FOREIGN

TRADE OF VIETNAM – OPERATION CENTER BRANCH Enhancing customer satisfaction on credit service quality for SMEs: A

research at JSC Bank for Foreign Trade of Vietnam – Operation Center

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Class Instructor : HSB-MBA 9 Instructor: PhD Ngo Vi Dung Code of Discipline:

Student name Class Instructor Code of Discipline

: NGUYEN HOAI PHUONG : HSB-MBA 9 : PhD Ngo Vi Dung

:

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

NGUYỄN HOÀI PHƯƠNG

ENHANCING CUSTOMER SATISFACTION ON CREDIT

SERVICE QUALITY FOR SMES: A RESEARCH AT JSC

BANK FOR FOREIGN TRADE OF VIETNAM –

OPERATION CENTER BRANCH

NÂNG CAO SỰ HÀI LÒNG CỦA KHÁCH HÀNG VỀ CHẤT LƯỢNG

DỊCH VỤ TÍN DỤNG DÀNH CHO KHÁCH HÀNG LÀ DOANH

NGHIỆP NHỎ VÀ VỪA TẠI NGÂN HÀNG TMCP NGOẠI THƯƠNG

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VIỆT NAM – CHI NHÁNH SỞ GIAO DỊCH

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2018

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ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

NGUYỄN HOÀI PHƯƠNG

ENHANCING CUSTOMER SATISFACTION ON CREDIT SERVICE QUALITY FOR SMES: A RESEARCH AT JSC BANK FOR FOREIGN TRADE OF VIETNAM –

OPERATION CENTER BRANCH

NÂNG CAO SỰ HÀI LÒNG CỦA KHÁCH HÀNG VỀ CHẤT LƯỢNG DỊCH VỤ TÍN DỤNG DÀNH CHO KHÁCH HÀNG LÀ DOANH NGHIỆP NHỎ VÀ VỪA TẠI NGÂN HÀNG TMCP NGOẠI THƯƠNG

VIỆT NAM – CHI NHÁNH SỞ GIAO DỊCH

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 NGÔ VI DŨNG

Hà Nội - 2018

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Hanoi – 12/2017

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DECLARATION

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 the laws for above-mentioned

declaration

Hanoi, date of …… / …… /…… 22/01/2018

Nguyen Hoai Phuong

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ACKNOWLEDGEMENT

I hereby certify that I am the sole author of this thesis and no part of

this thesis has been published or submitted for publication I certify that, my

thesis does not violate anyone‘s copyright Additionally, all ideas, quotations,

or material from the work of other people included in my thesis, published or

otherwise, are fully acknowledged with the standard of references

I declare that this is a true copy of my thesis The content of this thesis

has been approved by the committee of Vietnam National University, Hanoi –

Hanoi School of Business (HSB) This thesis has not been submitted for a

higher degree to any other University or Institution

In order to finish this project successfully, I have received many helps,

supports and guidance from many people who I would like to thank sincerely

First of all, I would like to thank all the professors of MBA program,

especially PhD Ngo Vi Dung – my suporvisor Then I would like to thank

deeply the respondents and interviewees who allowed me to gather enough

data for this research Finally, I would like to express my thanks to my family,

my colleges and my fellow friends who created convenient conditions and

give me encouragement and understanding for me to complete this degree

I sincerely thank you!

Hanoi, date of …… / …… /…… 22/01/2018

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Nguyen Hoai Phuong Formatted: Font: (Default) Times New Roman,

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MỤC LỤCTABLE OF CONTENTS

DECLARATION

ACKNOWLEDGEMENT

TABLE OF CONTENTS

ABBREVIATION iii

LIST OF FIGURES iiiiii

LIST OF TABLES viiiiii

CHAPTER 1 INTRODUCTION 111

1.1 Rationale 111

1.3 Aims of research 776

1.4 Object of research 776

1.5 Scope of research 776

1.6 Thesis structure 776

CHAPTER 2 THEORETICAL BACKGROUND 1087

2.1 Some basic concepts 1087

2.2 Value Proposition Design 201412

2.2.1 Authors Introduction 201412

2.2.2 Summary 211513

2.2.3 The Value Proposition Canvas 211513

2.2.4 Value Proposition Design 231715

CHAPTER 3 RESEARCH METHODS 402621

3.1 Research strategy 402621

3.2 Research Process: 402621

3.3 Data collection methods 412621

3.3.1 Secondary Data collection method 412621

3.3.2 Primary data collection method 412721

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3.4 Sample Seclection 432923

3.5 Interview 453024

3.6 Synthesize answers and Set up Value Proposition Canvas 453025

3.7 Concentrate on 10 characteristic of Great Value Proposition Design 463125

3.8 Propose solutions to improve Value map 463125

CHAPTER 4: REASEARCH RESULTS 473226

4.1 Introduction of the JSC Bank for Foreign Trade of Vietnam and Operation Center Branch 473226

4.1.1 Introduction of the JSC Bank for Foreign Trade of Vietnam 473226

4.1.2 Introduction of VCB - Operation Center Branch 503428

4.1.3 SMEs Department at VCB-SGD 533730

4.2 Research Results 553932

4.2.1 Customer Profile 553932

4.2.2 Value map 624637

4.2.3 Fit Map 665041

4.2.4 Concentrate on 10 Characteristics of Great Value Proposition 735344

4.2.5 Solutions for enhancing customer satisfaction on credit services for SMEs at SGD-VCB 755545

CHAPTER 5: CONCLUSION, LIMITATION AND IMPLICATION 795949

5.1.Conclusions 795949

5.2 Limitations 795949

5.3 Implications 816150

REFERENCES 846252

APPENDIX A QUESTIONNARE FOR SME CUSTOMERS 906454

APPENDIX B QUESTIONNARE FOR CREDIT OFFICERS 966756

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CHAPTER 2 THEORETICAL BACKGROUND

2.1 Some basic concepts

2.2 Value Proposition Design

2.2.4.5 Finding the Right Business Model

2.2.4.6 Designing in Established Organizations

CHAPTER 3 INTRODUCTION ABOUT JOINT STOCK

COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM

AND OPERATION CENTER BRANCH

3.1 Introduction of the JSC Bank for Foreign Trade of Vietnam

3.2 Introduction of the JSC Bank for Foreign Trade of Vietnam - Operation

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34.3 Data collection methods

34.3.1 Secondary Data collection method

34.3.2 Primary data collection method

43.4 Sample SeclectionSelection

34.5 Interview

34.6 Synthesize answers and Set up Value Proposition Canvas

34.7 Concentrate on 10 characteristic of Great Value Proposition Design 34.8 Propose solutions to improve Value map

CHAPTER 45: RESEARCH RESULTS

4.1 Introduction of JSC Bank for Foreign Trade of Vietnam and Operation Center Branch

4.1.1 Introduction of JSC Bank for Foreign Trade of Vietnam

4.1.2 Introduction of VCB - Operation Center Branch

54.2.2 Summarize interviewee‘s answer about ―Value map‖

54.2.2.1 Product and Service

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54.2.2.2 Gain creators

54.2.2.3 Pain Relievers

54.2.33 Fit Map

54.2.44 Concentrate on 10 Characteristics of Great Value Proposition

54.2.55 Solutions for enhancing customer satisfaction on credit services for

SMEs at SGD- VCB

4.2.5.1 Reduce processing time

4.2.5.2 Building professional communication skills with customers

4.2.5.3 Proposals on credit policies for VCB head office

CHAPTER 56: CONCLUSION, LIMITATION, IMPLICATION

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ABBREVIATION

VCB JSC Bank for Foreign Trade of Vietnam

VCB-SGD JSC Bank for Foreign Trade of Vietnam – Operation Center

Branch

SMEs Small and medium enterprises

VPD Value Proposition Design

VP Value Proposition

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1

LIST OF TABLESFIGURES

Table 2.1: Six Techniques to Gain Customer Insights 272122

Table 2.2: 10 Characteristic of Great Value Proposition 292323

Table 2.3: Distinguish between improve and invent 302425

Table 3.1: List of customers interviewed in flame of this research 442937

Table 3.2: List of credit officer interviewed in flame of this research 453037

Table 4.1: Labor Force of VCB-SGD, as of June 2017 513542

Table 4.2: Financial Indicators of VCB-SGD for the period 2012 – 2016 523643

Table 4.3: Share of profit before tax of VCB-SGD in the whole system of Vietcombank for the period 2012 – 2016 533744

Table 4.4: The implementation of business plans in 2016: 553945

Table 4.5: Strengths and weaknesses of credit services for SMEs as suggested by credit officers 644753

Figure 2.1 The relationship between service quality and customer satisfaction

Figure 2.12: ―The Value Proposition Canvas‖ 24

Figure 2.23: ―Ad-libs value proposition template‖ 25

Figure 3.1: Organization Chart of VCB-SGD 28

Figure 43.1: Flowchart of research process 29

Figure 34.1: Organization Chart of VCB-SGD 28

Figure 5.14.2: ―Customer Profile‖ of credit service for SMEs at VCB-SGD

33

Figure 5.24.3: ―Value map‖ of credit service for SMEs at VCB-SGD 34

Figure 5.34.4: Value Proposition Canvas of credit service for SMEs at

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1

SGD 43

Figure 5.44.5: Fit map

Figure 5.54.6: Disbursement process

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LIST OF FIGURESTABLES

Figure 2.1 The relationship between service quality and customer satisfaction

201416

Figure 2.1: ―The Value Proposition Canvas‖ 221618

Figure 2.2.: ―Ad-libs value proposition template‖ 251920

Figure 3.1: Flowchart of research process 412634

Figure 4 1 Organization Chart of VCB-SGD 513542

Figure 4.2: ―Customer Profile‖ of credit service for SMEs at VCB-SGD

675055

Figure 4.3: ―Value map‖ of credit service for SMEs at VCB-SGD 685056

Figure 4.4: Value Proposition Canvas 695157

Figure 4.5: Fit map 725259

Figure 4.6: Disbursement process 755562

Table 2.1: Six Techniques to Gain Customer Insights

Table 2.2: 10 Characteristic of Great Value Proposition

Table 2.3: Distinguish between improve and invent

Table 3.1: Labor Force of VCB-SGD, as of June 2017

Table 3.2: Financial Indicators of VCB-SGD for the period 2012 – 2016

Table 3.3: Share of profit before tax of VCB-SGD in the whole system of

Vietcombank for the period 2012 – 2016

Table 3.4: The implementation of business plans in 2016

Table 43.1: List of customers interviewed in flame of this research

Table 34.2: List of credit officer interviewed in flame of this research

Table 2.3: Distinguish between improve and invent

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Table 43.1: Labor Force of VCB-SGD, as of June 2017

Table 43.2: Financial Indicators of VCB-SGD for the period 2012 – 2016 Table 43.3: Share of profit before tax of VCB-SGD in the whole system of Vietcombank for the period 2012 – 2016

Table 43.4: The implementation of business plans in 2016

Table 5.14.5: Strengths and weaknesses of credit services for SMEs as suggested by credit officers

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CHAPTER 1 INTRODUCTION

1.1 Rationale

The total number of enterprises in Vietnam until 31/12/2016 is 477,808

enterprises, an increase of 8% compared to 2015, of which over 97% are

small and medium enterprises, nearly 60% of enterprises have small scale

(GSO,2017 - Announcement of some key indicators reflecting the

development of enterprises in provinces and cities in 2016)

―Small and medium enterprises (SMEs) and the private sector continue

to be a central force of growth of the Vietnamese economy SMEs have seen

exponential growth over the last decade The General Statistics Office of Viet

Nam reported 49,203 registered private enterprises in 2013, which is two

times more than in 2003 when 25,653 firms were observed (GSO 2014; GSO

2007) The number of firms in the manufacturing sector grew three times in

the same period: from 16,916 enterprises registered in 2003 to 58,688 in 2013

(GSO 2014; GSO 2007) Non-state enterprises employed 6.8 million

employees in 2013, which is 59.3 percent of the total enterprise workforce

This is three times more than in 2003 when non-state enterprises employed 2

million workers The number of employees in manufacturing increased from

Vietnam, of which how many are SMEs? percentage? Source? These numbers

show a clear trend of consistent growth in the SME sector, but the process is

taking place in a constrained environment often resulting in inefficient

resource utilization While some SMEs face credit and financial constraints,

others are challenged by the rigidities of the regulatory environment‖

(Characteristics of the Vietnamese Business Environment: Evidence from a

SME Survey in 2015)

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credit service become an independent banking services sector from 2008

Starting from this point, in addition to the large corporate customer service

department, the entire Vietcombank system established an SMEs banking

division at each branch, aimed at categorizing the customers who are SMEs,

so that increasing the satisfaction of SME customers and maximize the

benefits to the bank from the source of SME customers

The SME department at JSC Bank for Foreign Trade of Vietnam – Operating

relationships with banks, 100% of them are located in Hanoi and mainly in

urban districts The Competitive pressure in Hanoi's urban districts is very

high because there are many banks that share the market such as BIDV,

VietinBank, MB Bank, Agribank, VPBank, Improving customer

satisfaction on credit service quality for SMEs is an urgent task to keep

existing customers and create more potential customers

JSC Bank for Foreign Trade of Vietnam – Operating Center Branch is a

major subsidiary of Vietcombank, which has over 600 employees We were

the pioneer in setting up a credit service department for SME customers, with

a size of 25 people The services provided by the SME department are varied,

including short-term loans, medium and long-term loans, guarantees,

discounted vouchers, overdrafts, letters of credit, etc that meet almost

demands of SME customers However, because of the competition in the

banking market in general and the competition within the Vietcombank

branch network, we have to constantly improve the quality of our services

Until now, I have been working as an SME credit officer at VCB- SGD

for three years, I realize that besides developing new customers, retaining old

customers is more important, and the key factor of customer retention is to

enhance the satisfaction of SME customer service ―The key to customer

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Therefore, I would like to study the subject of "Enhancing customer

satisfaction on credit service quality for SMEs: A research at JSC Bank for

Foreign Trade of Vietnam – Operation Center Branch" for my mater thesis In

this thesis I would like to apply Value Proposition Design to find out the

tool that is argued that can help managers and firms to better serve their future

and current customers (Osterwalder, year2014?)

Based on the reasons presented as above, I proposesThe major research

services?

- Does VCB-SGD need to improve its current value proposition?

1.2 Literature review

Value Proposition Design is the key components of the Business Model

Canvas that is a strategic management and lean startup template for developing

new or documenting existing business models It is a visual chart with elements

describing a firm's or product's value proposition, infrastructure, customers, and

finances It assists firms in aligning their activities by illustrating potential

trade-offs

The Business Model Canvas was initially proposed by Alexander

Osterwalder based on his earlier work on Business Model Ontology Since the

release of Osterwalder's work in 2008, new canvases for specific niches have

appeared

Formal descriptions of the business become the building blocks for its

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activities Many different business conceptualizations exist; Osterwalder's

work and thesis (2010, 2004) propose a single reference model based on the

similarities of a wide range of business model conceptualizations With his

business model design template, an enterprise can easily describe their

business model

A business model describes the rationale of how an organisation

creates, delivers, and captures value The business model canvas is a tool that

can be used to translate a business model into nine building blocks that show

the logic of how a company intends to make money The main purpose of a

business model canvas is to foster understanding, encourage discussion,

creativity and analysis

Today, the business model canvas is extremely popular for startups and

entrepreneurs who create new enterprises, reinvigorate existing companies

and also to periodically re-evaluate their business models

At the heart of this tool is the extremely important element of the

business model, Value Proposition And to be able to build Value Proposition

in a business model, it must be derived from the Customer Segments

The Customer Segments is different groups customers which a

company aims to reach and that company has to find out for them (profitable)

customers in order to survive in long-term A company can group their

targeting customers into distinct segments with common needs, common

behaviors, or other attributes, so they will able to serve their customers better

There are one or several large or small Customer Segments of a business

model However, a company should make a right decision to select which

segments to serve and which segments to ignore After making this decision, a

business model can be carefully designed around a strong understanding of

specific customer needs (Osterwalder & Pigneur, 2010)

Value Propositions is the bundle of products and services that create

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value for a specific Customer Segment The Value Proposition is the reason

why customers select a company‘s products or services instead of another It

solves a customer problem or satisfies a customer need Each Value

Proposition consists of a selected bundle of products and/or services that caters

to the requirements of a specific Customer Segment There are some Value

Propositions to be innovative and represent a new or a disruptive offer, while

others may be similar to existing market offers, but with added features and

attributes (Osterwalder & Pigneur, 2010)

In 2014, following the success of the book Business Model Generation,

Osterwalder and his co-authors continue to publish a book titled "Value

Proposition Design." The main content of this book is to provide startups,

and entrepreneurs as well as established companies a set of detailed and

intuitive tools to be able to design, test and deliver what customers wants, in

other words, create Value Proposition in their own business model

The Value Proposition Canvas is the tool at the center of this book It

makes value propositions visible and tangible and thus easier to discuss and

manage It perfectly integrates with the Business Model Canvas and the

Environment Map, two tools that are discussed in detail in Business Model

Generation, the sister book to this one Together, they shape the foundation of

a suite of business tools The Environment Map helps you understand the

context in which you create, the Business Model Canvas helps you create

value for your business and the Value Proposition Canvas helps you create

value for your customer (Osterwalder & Pigneur, 2014)

Three reasons why Value Proposition Design (VPD) helps

entrepreneurs and startups succeed in creating value for your customers are:

First of all, VPD helps entrepreneurs and startups quickly succeed in

understanding how to create value for customers through organize

information about what customers want in a simple way that makes the

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patterns of value creation easily visible As a result, entrepreneurs will more

effectively design value propositions and profitable business models that

directly target customers‘ most pressing and important jobs, pains, and gains

Everything becomes clear

The second reason is the VPD helps to increase the efficiency of the

team by equip team with a shared language to overcome the illogical

discussion, conduct more strategic conversations, run creative exercises, and

get aligned This will lead to more enjoyable meetings that are full of energy

and produce actionable outcomes beyond a focus on technology, products,

and features toward creating value for customers and company

The third reason is that the VPD process allows entrepreneurs and

startups to avoid wasting time with ideas that won‘t work by relentlessly test

the most important hypotheses underlying business ideas in order to reduce

the risk of failure Processes to shape new ideas will be fit for the task and

complement existing processes that help entrepreneurs run their business

VPD is not only used to invent new products and services that VPD

also can improve value propositions The tools of VPD work for managing

and renewing value propositions (and business models) just as much as for

creating new ones By putting the value proposition and business model,

entrepreneurs and startups can create a shared language of value creation in

their organization The process of creating the value proposition that

customers want and improving it in line with customer change is a process

that requires continuous innovation and never ends

Using VPD to improve the business model helps create new growth

engines without changing so much that capital gains can be made from existing

models and systems This is especially suited to existing organizations

―Great companies manage a portfolio of value propositions and business

models that cover the entire invent-improve spectrum and make synergies and

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competitive conflicts explicit They are proactive and invent while they are still

successful, rather than wait for a crisis‖ (Osterwalder & Pigneur, 2014)

Assessing the current researches on improve product and service

quality in general in Vietnam shows that there are numbers of different tools,

but there are a few official researches in Vietnam using VPD model

Value Proposition Design is still a new tool and not widely applied in

improving the quality of products and services in general in Vietnam

Therefore, a research using Value Proposition Design tool to improve the

value proposition (service quality) and customer satisfaction on credit service

for SMEs of VCB-SGD is necessary

1.3 Aims of research

Aims of this research are to:

- Identify the current status of customer satisfaction on service quality of

credit service for SMEs at VCB-SGD using VPD tools

- Applying VPD tools to find potential ways/solutions for Enhancing

customer satisfaction on credit service quality for SMEs at VCB-SGD

1.4 Object of research

The object of research is the credit service for SMEs of VCB-SGD

1.5 Scope of research

Scope of this research is to find potential ways/solutions for Enhancing

customer satisfaction on credit service quality for SMEs at VCB-SGD base

on information from interviews which conducted in December 2017 with

questions designed under the VPD model

1.6 Thesis structure

Thesis structure of this research includes 56 chapters, and major

content will be described in 043 chapters from Chapter 2 to Chapter 54 as

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Chapter 2: Theoretical background

Chapter 3: Introduction about Joint Stock Commercial Bank For

Foreign Trade of Vietnam and Operation Center Branch

Chapter 43 : Research method

Chapter 54 : Research result

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CHAPTER 2II THEORETICAL BACKGROUND

2.1 Some basic concepts

Service is a common key term which appears frequently in economics or

marketing Due to the heterogeneity of services, there are many different

ways to define the term According to Cambridge dictionary, service is

defined as ―a government system or private organization that is responsible

for a particular type of activity, or for providing a particular thing that people

need‖ There are 4 unique characteristics of service which are illustrated as

below (Harris et al., 1998):

- Intangibility: Service is not physical and cannot be seen, felt or tested

before making a purchase Therefore, it has always been difficult to evaluate

the true value and quality of services In some cases, it actually takes months

or years for the customers to assess service quality such as the capability of

turning to the bank in times of difficulties for SMEs

- Inseparability: Services are unique since they are typically produced

and consumed at the same time and same location For example, a tax

consultant provides service for a customer, which means the customer is using

the service simultaneously This leads to 2 possible consequences Firstly, the

consumer directly observes how the service producer or provider does their

jobs, hence they can make judgement about the quality of the service

(Coldren, 2006) Secondly, the customer often expects the service to be

delivered in a specific and standardized way, which means they will feel

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disappointed if their expectations are not met

- Perishability: Service cannot be stored for future use When a hotel is

fully booked one day and empty the next day, profit will be impacted as

expenses are normally fixed Perishability, hence, has a huge effect on

performance since balancing supply and demand is challenging For example,

auditors can become busier during investigation periods, which means they

may not give the same attention to the service as at other periods of the year

and high performance may be hard to be maintained In other words, value of

service is only assessed at the time it is required

- Variability (Heterogeneity): All iPhone 7 have the same design and

functions and there is no variation in the quality Unlike tangible products, the

quality of service is immensely variable, as they depend on who provides it,

where, when and how it is provided The more a business relies on humans

(instead of technology), the more variable the service quality they provide is

This is explained by the fact that human behaviors cannot be fully controlled

and standardized (Coldren, 2006) It depends on knowledge, attitude of

different employees and time or month of the year (seasonal, time sensitive),

etc…

 Banking services

According to Salwan (2012), banks are the key finance providers to SMEs A

RBI circular in 2005-06 ―made it mandatory for banks to lend to SMEs sector

(priority sector lending)‖ The conventional banking products and services

include deposits, business loans, saving accounts, etc… A variety of banking

services nowadays has been developed and improved significantly due to

advanced technological development It leads to the introduction of debit and

credit cards, automated teller machines (ATM), investment products

(insurance) and many others (Ngu Chiung Hung, 2012) Furthermore,

technology development has made our lives much easier and simpler by the

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existence of internet banking As long as your devices are connected to

Internet, you can make online money transfers, check eStatements and pay

online bills However, each bank delivers services in a unique method, the

only way to differentiate banks is to assess their service quality

 Credit service

Bank credit is the total quantity of funds available (such as loans) that a bank

provides to an individual or a business (Investopedia) Besides, to avoid

information asymmetry, credit service includes providing the individual or

business all the information related to credit such as a borrower‘s bank credit

relying on his ability to repay the total amount of loan

The study of Arinaitwe and Mwesigwa (2015) emphasized the importance of

credit accessibility for SMEs in terms of their creation, survival and future

growth Access to finance can help SMEs‘ start up, expansion of their product

and service lines and especially investment in human capital (training,

rewards) Indeed, if SMEs are unable to access to an adequate amount of loan,

they will not have enough funds to boost their productivity as well as to invest

in their employee capital… This hence has a huge impact on national

economy in general Therefore, it is crucial for banks to take into account of

credit accessibility since it is a major factor of assessing credit service quality

 Service Quality and Satisfaction

Service quality is considered as the key weapon in the competition amongst

organizations since it determines the survival as well as profitability of the

firm (Shahraki, 2014) In the research of Munusamy et al (2010), service

quality is defined as the difference between consumer‘s expectations about

the service (beliefs about how the services should be delivered) and the

perceptions of the received service (what the service actually offers)

Therefore, customers will rate the service quality as ‗high‘ if their

expectations are met and as ‗low‘ if the performance falls under their

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expectations

On the other hand, Jobling et al (2009) found that service quality is measured

by different multiple dimensions by examining Australian banking to SMEs

perspective Besides SERVQUAL model which have 5 dimensions, Rust and

Oliver (1994) concluded that service quality comprises 3 major dimensions

which are service product (technical quality), service delivery (functional

quality) and the service environment The scholars argue that the number of

dimensions determining service quality vary actually dependent upon

different consumer groups and industries

Customer satisfaction?

Service quality consists of 5 key characteristics which are superiority, product

specificity, supply, customer satisfaction and value creation (Luu Van

Nghiem, 2008) There is evidence suggesting that there is a strong positive

correlation between service quality and customer satisfaction (Shahraki, 2014;

CMA and FCA, 2014; Ngo Vu Minh and Nguyen Huan Huu, 2016) In other

words, the more superior the service is delivered, the happier customers will

feel and stay with the bank

 Services

Service is a common key term which appears frequently in economics

or marketing Due to the heterogeneity of services, there are many different

ways to define the term According to Cambridge dictionary, service is

defined as ―a government system or private organization that is responsible

for a particular type of activity, or for providing a particular thing that people

need‖ There are 4 unique characteristics of service which are illustrated as

below (Harris et al., 1998):

- Intangibility: Service is not physical and cannot be seen, felt or tested

before making a purchase Therefore, it has always been difficult to evaluate

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