Research about factors affect to customers’ satisfaction when using atm card products at donga bank tan binh branch ho chi minh city

40 FIGURE Figure 1: Card payment process Figure 2: Model 5 stage decision making to purchase goods or services Figure 3: American Customer Satisfaction Index – ACSI Figure 4: European

WHEN USING ATM CARD PRODUCTS

AT DONGA BANK, TAN BINH BRANCH,

HO CHI MINH CITY

STUDENT’S FULL NAME : VO HUYNH DUC

ADVISOR'S NAME & TITLE : DR BUI PHI HUNG

AUGUST, 2017

Advisor’s signature

1.1 Research background 1

1.2 Objectives of the study 1

1.3 Research Methodology 2

1.4 Subjects and scope of study 2

1.5 Structure of the Paper 3

1.6 Structure and content of research topics 3

Chapter II: Literature review 4

2.1 Payment card overview 4

2.1.1 Some basic concepts about payment cards 4

2.1.2 Card classification 4

2.2 Utilities when using the card 4

2.3 Process of issuance, payment by ATM card 5

2.4 Consumer behavior 6

2.5 Customer satisfaction index model 6

2.5.1 Building the model 7

2.5.2 Method of measurement of satisfaction indicators 10

2.5.3 Application of customer satisfaction index in strategic planning 11

2.5.4 Customer satisfaction 11

2.5.5 Service quality 12

2.5.6 Parasuraman service quality distance model 12

Chapter III: Research Methodology 14

3.1 Research design 14

3.1.1 Collect information 14

3.1.2 Research Methods 15

3.1.2.1 Preliminary research 15

3.1.2.2 Formal study: 15

3.2 Develop ATM service quality scale 16

3.3 Develop a measure of customer satisfaction: 17

Chapter IV: Analysis and Research Results 23

4.1.2 Factor analysis 26

4.2 Accreditation of theoretical models 28

4.2.1 Pearson correlation coefficient analysis 29

4.2.2 Regression analysis 30

4.2.3 Evaluate the quality of ATM card services currently offered by DongA Bank, Tan Binh Branch……… 33

4.2.3.1 About service efficiency and customer support 33

4.2.3.2 On tangible means 34

4.2.3.3 About credibility 35

Chapter V: Conclusion and solution 37

5.1 The proposal effectively serve and support the client 37

5.2 Conclude 39

References 40

FIGURE

Figure 1: Card payment process

Figure 2: Model 5 stage decision making to purchase goods or services

Figure 3: American Customer Satisfaction Index – ACSI

Figure 4: European Customer Satisfaction Index – ECSI

Figure 5: Theoretical model of satisfaction indicators of banks

Figure 6: Strategic planning model for customer-centered customer satisfaction

Figure 7: Service quality model (Parasuraman, 1988)

Table 3.1: Sample sex information

Table 3.2: Age sample information

Table 3.3: Sample Information on educational level

Table 3.4: Sample information on personal income

Table 4.1: Results of the Cronbach's alpha coefficient analysis

Table 4.2: Results of the analysis of the factors of the service quality scale

Table 4.3: Results of factor analysis of customer satisfaction scale

Table 4.4: Correlation matrix between variables

Table 4.5: Results of multiple regression analysis

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CHAPTER I: INTRODUCTION 1.1 Research background:

The bank card market in Vietnam is currently developing very vibrant, especially domestic debit cards (ATM cards) with more than 40 banks involved in issuing these cards, including state-owned commercial banks, Joint stock commercial banks, joint venture banks and foreign bank branches With a population of over 80 million and a young population structure, Vietnam is considered a potential market for the development of this modern service Therefore, the tough competition between banks will inevitably take place

to attract target customers to their banks Therefore, in order to improve competitiveness and expand market share, researching customer satisfaction when using ATM card services

is an important issue that needs to be paid due attention

At DongA Bank, Tan Binh Branch, there is no formal study related to the quality of ATM card services provided and the level of customer satisfaction when using these card services The bank, as a service provider, must be responsible for providing quality products, regard customers as subjects, the one who bring the income to the bank itself

As for customers, they have a product of their choice that can meet and satisfy their requirements

In the future, the use of non-cash payment services will become popular and close

to the people of Vietnam, especially card services Therefore, banks that want to maintain and develop this service need to accurately measure the quality of their card services, thereby improving their ability to meet the increasing demands of their customers

1.2 Objectives of the study:

This study provides an overview of the ATM cards of DongA Bank and thereby assesses the quality of ATM card services offered by DongA Bank The objective evaluation of customers has an important significance to help the bank go in the right direction to improve the quality of ATM card related services

Specific objectives include:

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- Measuring the quality of ATM services of DongA Bank

- Recognizing clearly the opinions of customers about the quality of ATM card services provided by the bank

1.3 Research Methodology:

What research method do we choose? And how to follow the process? Here we choose the quantitative method

Quantitative research methods include:

- Probe study: Prior to the formal study, the survey was conducted in a total of 50

clients to identify errors in the design of the questionnaire, the missing content needed to

be added

- Official study: Through consultations with card specialists, the variables of

observation have been modified and adapted to the interviewees The official study was conducted with a sample size of 200 clients working at companies paid monthly through their accounts opened at the DongA Bank, Tan Binh Branch

- What interviewing method is used?: Investigation by answering the questionnaire

in the form of a letter of inquiry through colleagues working in the marketing team of Sales Department of Card Services at DongA Bank, Tan Binh Branch

- Survey time and response rate? : The official study is expected early in June 2017,

the survey period is about 2 weeks, estimated response rate is over 90% because customers are interested and respond to this survey according to preliminary research

- Using analytical methods? How to test the research model? This study uses factor

analysis to extract the elements of quality ATM card services that affect customer satisfaction

- SPSS software is used to test the research model

1.4 Subjects and scope of study:

To complete this essay, we seek answers to the following questions:

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This study was conducted in Ho Chi Minh City Who are the interviewees? Where?

In this survey, the selected respondents were employees working for companies paying salary via DongA Bank, Tan Binh Branch

1.5 Structure of the Paper:

Research topics bring some practical implications:

- As a service provider, will DongA Bank accurately assess the services of its ATM

card to meet the needs of customers? Through this, the bank continues to have more investment in technology, people and diversification of ATM card related products in order

to satisfy not only the needs and increasing demands of traditional customer, but helps to motivate potential customers, especially young people, to see the convenience of using modern means of payment

- This research helps customers better understand the ATM card service that they

have been using, eliminating the notion that the use of ATM cards is only to withdraw cash

at the ATM From there, customers can use ATM card services in the most effective way

- Other commercial banks that are issuing ATM cards or preparing to market this

service may use this research as a reference in their development strategy

- Other commercial banks that are issuing ATM cards or preparing to market this

service may take this research as a reference in their development strategy

1.6 Structure and content of research topics

In addition to the introduction and conclusion, the research topic is divided into five chapters, namely:

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CHAPTER II: LITERATURE REVIEW 2.1 Payment card overview:

2.1.1 Some basic concepts about payment cards:

A payment card is a non-cash payment that the cardholder can use to withdraw cash

or pay for goods or services at places where cards are accepted

2.1.2 Card classification:

At present, there are following cards in the domestic payment market:

- Debit card: For this card, the user does not have to deposit money into the bank

account to ensure payment card The limit of the debit card is the balance on the cardholder's deposit account at the bank Debit cards usually apply to customers who have regular business relationships

- Credit Card: Credit Card is the type of card that the bank gives the customer a

loan to use on the card account The limit of the card is also the credit limit that the bank lends to the borrower Credit card applies to customers who qualify for a bank loan

- Margin card: This type of card is applied to all customers with a deposit in the

account Limit of the main card is the amount deposited by the customer to the account to use for his card

2.2 Utilities when using the card:

- For issuing banks: Generate regular income for the bank issued by the annual fee that cardholders have to pay to the bank Recharging the account by cardholders to use the card facilitates banks to mobilize funds from customers' demand deposits In addition, ATMs or card accepting places also contributes to the expansion of the bank's network

- For cardholders: When using the card, the cardholder is provided by a bank with

a high security payment service and great convenience In addition, when the customer has

a balance on the account, if the customer does not use, this balance will be entitled to interest rates of demand deposits The use of credit cards or payment cards ensures the ability to use in multiple currencies, regardless of the foreign currency of any country

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- For reimbursing bank: With charges such as commercial discounts, cash withdrawal fees, agent fees, reimbursing banks could get a relatively stable revenue In the card payment process, issuers usually open accounts at banks for payment This increases the amount of deposits and deposits for the reimbursing bank

- For card payment accepting places: By providing advance credit to customers, the bank helps customers spend more than they can afford, which is a boost to customer purchasing power, and this will lead to higher consumer spending The service of the card accepting places is soaring When accepting payment cards, sellers are able to minimize the costs of cash management such as preservation, counting, remitting into bank accounts, enjoying bank preferences on credit, payment service

2.3 Process of issuance, payment by ATM card

The process of issuing card payment is as follows:

Figure 1: Card payment process

(1) The customer shall make a written request for payment card issuance to the Bank

(2) When the bank agrees, the card issuing bank shall carry out procedures to issue the card for customers to use and instruct the customer how to use the card

(3) The cardholder presents the card to the receiver when purchasing goods or services Card receivers put into the card payment machine, the machine automatically record the payment amount and print the payment receipt

(4) The person who receives the card returns the card giving the payment slip to

(7) Correspondent banks transfer the invoice and payment document to request the issuing bank to make a payment

(8) Banks issue makes payments to correspondent payment banks

The buying decision process is a series of stages that consumers spend in making a decision to buy a product or service That process consists of 5 stages:

Figure 2: Model 5 stage decision making to purchase goods or services

2.5 Customer satisfaction index model:

Origin: Since the 1970s, customer behavior researchers in developed countries have

begun to undertake in-depth studies of customer satisfaction such as Oliver (1977),

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Churchill And Suprenant (1982), Olshavsky (1993) and Fornell (1989), along with colleagues at the University of Michigan, helped Sweden establish the world's first customer satisfaction measurement system at the national level In later years, this index was developed and widely used in developed countries such as USA - ACSI, Norway - NCSI, Denmark - DCSI and EU countries - ECSI (1998)

Figure 3: American Customer Satisfaction Index – ACSI

2.5.1 Building the model:

Through the American Model of Satisfaction Index (ACSI), the perceived value

is influenced by the perceived quality and expectations of the customer Then, the expectations of customers have a direct impact on the perceived quality In fact, the higher the expectations, the higher the quality of customer perception of the product or vice versa Therefore, the quality requirements of products and services provided to customers need

to be ensured and satisfied on the basis of their satisfaction Customer satisfaction is built

on the basis of perceived quality, expectation and perceived value, if quality and perceived value are higher than expected to create loyalty to the customer In the opposite case, this

is a complaint or blaim about the product they are consuming

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Figure 4: European Customer Satisfaction Index – ECSI

The European Comfort Index (ECSI) model has some distinct differences Compared to ACSI, the image of the product or brand has a direct impact on customer expectations At that time, customer satisfaction is the combined effect of 4 visual elements, perceived value, perceived quality both tangible and intangible Typically, the ACSI is generally applicable to the public sector, while the ECSI is often used to measure products and industries

Clearly, the strength of this approach is that it immediately shifts the consumer experience, facilitating the study of the causal relationship between the constituent components of customer satisfaction and loyalty

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Figure 5: Theoretical model of satisfaction indicators of banks

Researchers have developed a model of customer satisfaction index applied to most banks Based on the results of the model study of the countries, the theoretical model of customer satisfaction index of the Bank includes the following specific factors:

Image: The image expresses the relationship between the brand and the association

of the customer with the attributes of the brand This variable is expressed by the reputation, prestige, trust of the consumers themselves with the brand Practical research has confirmed that this is an important factor and has a direct impact on customer satisfaction

Expectations: Express the level of quality that customers expect to receive, the

parameters that measure the expectations associated with the parameters of the image and the perceived quality of the product and service This is the result of previous consumer experience or information through media channels for the product or service In fact, the higher the expectations, the more likely it is that you will be able to make a purchase decision but the higher your expectations, the more likely the bank will satisfy the customer

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Perceived quality: For the bank, the quality of perception is the quality of the

perceived product or service With intangible features, banking products considered in this case are loan terms, the time from the loan application to the loan, the style of the manager and the consultants, Air at the counter, post-borrowing commitments and other binding conditions

Perceived value: Theoretical studies show that customer satisfaction depends on the

perceived value of goods and services Value is the level of appreciation / perception toward the quality of the product compared to the price paid or the "value not only in money" aspect that the consumer consumes the product Customer value is the difference between the total value a customer receives and the total cost that a customer pays for a product or service For a bank, it is the total amount to pay, the costs of time, effort and other risk costs relative to the value of the service (tangible benefits), psychological value, trust And human value The difference between value and cost is the perceived value that banking services bring to customers

Price: This is the new variable proposed for consideration in the theoretical model Loyalty: It is the ultimate variable in the model and is critical to the survival of the

bank in the future, measured by the intention to continue to buy, trust, and recommend to others for products and services They are using In contrast to loyalty is the complaint when customers are not happy with the product or service compared to their expectations Customer loyalty is seen as a bank asset Therefore, banks need to create satisfaction with customers that enhance their loyalty to the bank

2.5.2 Method of measurement of satisfaction indicators

Qualitative research will identify the indicators that need to be measured in each variable For example, for banks, image variables are measured by the prestige, the number

of branches traded, the automatic channel, the stability of the business process, the air in the delivery process Factors in visual variables, expectations, perceived quality, perceived value, loyalty (complaint) are often "quantified" through the Likert scale from 5 to 10 options and Customer satisfaction variables typically use a 10 or 100 scale The variable's

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point is the mean of the items used to form the variable After the data collected from the customer, factor analysis and reliability analysis tools can be used to examine the similarities in the establishment of variables Numbers from specific elements (items)

2.5.3 Application of customer satisfaction index in strategic planning

Figure 6: Strategic planning model for customer-centered customer satisfaction

2.5.4 Customer satisfaction:

Customer satisfaction is considered the cornerstone of the marketing concept of satisfying customer needs and expectations (Spreng, MacKenzie, & Olshavsky, 1996) Satisfied customers are an important factor in maintaining long-term business success and appropriate business strategies to attract and retain customers (Zeithaml & GCT, 1996)

The quality is now evaluated on the customer perspective A good product means fulfilling or even exceeding customer expectations and satisfying the customer

According to Kotler (2006), satisfaction is the level of a person's sense state that results from comparing the perception of a product to his or her expectations Accordingly, satisfaction has the following levels:

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Level of dissatisfaction: The level of customer perception is smaller than expected Satisfaction level: The level of customer perception is equal to the expectation Very satisfied: The level of customer perception is greater than expected

2.5.5 Service quality:

Quality of service is defined in many different ways depending on the research subject and the research environment Quality of service is the extent to which a service meets the needs and expectations of customers (Lewis & Mitchell, 1990; Asubonteng & ctg, 1996; Wisniewski & Donnelly, 1996) Edvardsson, Thomsson & Ovretveit (1994) argue that service quality is a service that meets the expectations of customers and satisfies their needs According to Parasuraman & ctg (1985, 1988), service quality is the distance between customer expectations and their perceptions when used through the service

In short, quality of service is a factor that affects customer satisfaction Want to improve customer satisfaction, service providers need to improve service quality In other words, quality of service and satisfaction are closely interrelated In it, the quality of service

is what first creates, decides the satisfaction of customers

2.5.6 Parasuraman service quality distance model:

Parasuraman & ctg (1985, 1988) have put forward a five-distance service quality model This model is presented as follows:

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Difference 5: Appears when the deviation between the service received and the expectations of the customer And this difference depends on the previous distance, ie to increase the quality of service or shorten the 5th distance, efforts must be made to shorten the distance

The distinct year model is the general model, according to Parasuraman Any quality service is also perceived by customers based on five components:

Reliability: the ability to deliver the service as promised to the customer

Responsiveness: expresses the willingness and willingness of service personnel to provide timely service to customers

Competence: trust, safety, professionalism of service personnel

Empathy: access to information, understanding customers Show the interest of employees with customers

Tangibles: equipment for service and outfit, appearance of employees

CHAPTER III: RESESEARCH METHODOLOGY 3.1 Research design:

After determining the model of factors affecting the quality of ATM card service and customer satisfaction using the card in chapter 1, the author will present a detailed study plan such as: Which research methodology for the model, how to collect information, using what scale to analyze

3.1.1 Collect information:

During the study, the author used two sources of information:

- Primary information:

+ Questionnaires received from customers

+ Interview results, discussion with Bank staff / leaders to get a clearer view of their views, plans and assessments of research issues

- Secondary information:

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Theoretical foundations and selected articles in marketing magazines and bank magazines are secondary sources of information for research purposes The sources of information for the secondary data are as follows:

+ Bank Magazine + Marketing Magazine + Speeches on service and quality of service + Lecture on Research Methods and Data Analysis SPSS + Report on business activities of DongA Bank, Tan Binh Branch + Information from the Internet

3.1.2 Research Methods:

In order to assess the quality of ATM card services of DongA Bank and the level of satisfaction of customers using this service, the author has used quantitative research method The research process was conducted through two main steps: preliminary research using quantitative and qualitative methods using quantitative methods

3.1.2.1 Preliminary research:

Prior to the formal study, the survey was conducted in a total of 50 clients to identify errors in the design of the questionnaire, the missing content needed to be added

3.1.2.2 Formal study:

- Method of collecting information and sample size

Through consultations with card specialists, the variables of observation have been modified and adapted to the interviewees The official study was conducted in Ho Chi Minh City with a sample size of 200 clients working in five companies paying their monthly salary through accounts opened at DongA Bank, Tan Binh branch

Selected companies include:

+ Vitaco Petroleum Transportation Joint Stock Company

+ State Capital Investment Corporation (SCIC)

+ Saigon Marine Joint Stock Company

+ Hong Ngoc Ha Trading Service Co, Ltd

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+ ILA Vietnam Co, Ltd

Sampling is randomly selected in combination with filtered objects Accordingly,

in order to ensure the reliability of the data set to be collected, the criterion for selection of the company to be surveyed is the duration of using the paid service through DongA Bank, Tan Binh Branch for 1 year or more And regular invoicing of service bills through the account

According to the plan, 200 questionnaires will be sent to the customers in two forms: direct mail to customers or marketing staff will contact the payroll department personnel Pay through the account to send questionnaires

After two weeks, the author received 175 votes, of which 4 were invalid due to multiple vacancies Thus, after eliminating four invalid votes, the remaining 171 votes met the required sample size for analysis

- Data analysis plan:

With the data collected from the survey, after conducting the data cleaning and validation, some of the methods used in the study are as follows:

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Sex

Absolute frequency (person)

Relative frequency (%)

Valid frequency (%)

Cumulative frequency (%) Male 88 51.5 51.5 51.5

Female 83 48.5 48.5 100

Total 171 100 100

Table 3.1: Sample sex information Thus, there are a total of 88 male customers accounting for 51.5% and 83 female customers, accounting for 48.5% of the total of 171 clients surveyed From the above results, it can be seen that the gender structure of customers using ATM card service of DongA Bank is similar

+ About age:

Age

Absolute frequency (person)

Relative frequency (%)

Valid frequency (%)

Cumulative frequency (%) From 18 – 30 89 52.3 52.3 52.3

18 clients in the age group from 41 to 50 years, accounting for 10.7% and the group of customers from 51 to 60 years old is 4 people, accounting for 1.6% of the total four age groups surveyed Through these figures, it can be seen that young people are very interested

in ATM card services because of this new, modern, safe and fast payment method

+ About education