Factors affecting the satisfaction of customers to internet banking of vietnam joint stock commercial bank for industry and trade vietinbank ba dinh branch

i Master Finance - Banking - Insurance South East Asia Cohort 2016 -02018 MASTER THESIS Factors affecting the satisfaction of customers to Internet Banking of Vietnam Joint Stock Comm

i

Master Finance - Banking - Insurance

(South East Asia) Cohort 2016 -02018

MASTER THESIS

Factors affecting the satisfaction of customers to Internet Banking of Vietnam Joint Stock Commercial Bank for Industry

and Trade(Vietinbank) - Ba Dinh Branch

Author:NGUYEN THI THIEN HUONG

Supervisor: PhD DAO TUNG

Hanoi, 05/2018

ii

ACKNOWLEDGEMENT

I would like to thank all of Lecturer of National Economics University, Lecturers of International School - Vietnam National University, Ha Noi; Professors of Nantes University – French Republic have enthusiastically imparted knowledge to me during the past time

I express my deepest gratitude to my Supervisor, PhD Dao Tung, who have helped me during the period of studying and completing this Thesis

Finally, I would like to thank my family, colleagues and friends for their support and sharing experiences during the thesis

Sincerely thank!

Hanoi, May 2018

Nguyen Thi Thien Huong

iii

TABLE OF CONTENTS

ACKNOWLEDGEMENT ii

ABSTRACTS vii

CHAPTER 1: INTRODUCTION 1

1.1 Research reasonale: 1

1.2 Questions and research objects: 2

1.3 Research Methods: 2

1.3.1 Research objects 2

1.3.2 Research area: 3

1.3.3 Research methods: 3

1.4 Practical meaning of the topic 3

1.5 Overview of past research on the subject: 3

1.6 Proposed structure of the thesis 4

CHAPTER 2: THEORITICAL FOUNDATION 6

2.1 E-commerce and Internet Banking 6

2.1.1 E-commerce concepts 6

2.1.2 Internet banking service 7

2.2 Customer Satisfaction: 10

2.2.1 Concepts of customer satisfaction 10

2.2.2 The relationship between customer satisfaction and service quality 12

2.3 Factors affecting the Customers' Satisfaction to Internet Banking: 12

2.4 Reality of internet banking services by Ba Dinh branch 15

2.4.1 The development of internet banking services of Ba Dinh Branch 15

2.4.2 Characteristics of internet banking services of Ba Dinh Branch 16

2.4.3 Customer participation in internet banking 16

2.4.4 The results of internet banking services of the branch in recent years 17

CHAPTER 3: RESEARCH METHODS 18

3.1 Research model and Hypothesis: 18

3.2 Development of research hypothesis: 18

3.2 Research Process: 19

3.3 Research Methods: 21

CHAPTER 4 24

DATA ANALYSIS AND KEYS FINDING 24

4.1 Description of the sample: 24

4.2 Validation of the Scale: 26

4.2.1 Explanatory factor analysis of customer satisfaction factor 26

4.2.2 Explanatory factor analysis of the antecedents of customer satisfaction 27

4.2.3 Reliability test analysis 30

4.3 Behavior of using Internet Banking services of the samples: 33

4.3.1 Description of the behavior of using Internet Banking services of the samples 33 4.3.2 The impact of demographic variables on customer satisfaction 37

4.4 Validation of hypothesis: 39

4.5 Summary of key findings 42

Chapter 5: CONCLUSION 44

5.1 Summary of the research results 44

5.2 Managerial Implication 45

5.2.1 Ease of use: 45

iv

5.2.2 Continuous Improvement: 45

5.2.3 Speeds of Responses: 46

5.2.4 Confidentiality and Security: 46

5.3 Limitation of research: 46

REFERENCES: 47

APPENDIX 1 49

APPENDIX 2 53

APPENDIX 3 57

APPENDIX 4 60

APPENDIX 5 64

v

LIST OF TABLES

Table 2 1 Factors afecting to customers satisfaction of using internet banking 13

Table 2 2 Implementation of Internet Banking in VietinBank Ba Dinh Branch 16

Table 2 3 Customer structure using Internet Banking 17

Table 2 4 Business results of Internet Banking services 17

Table A3- 1 Independent Sample T-Test of gender 57

Table A3- 2 One-Way ANOVA for age 57

Table A3- 3 One-Way ANOVA for monthly income 58

Table A3- 4 One-Way ANOVA for how long of using Internet banking services 58

Table A3- 5 One-Way ANOVA for the frequency of using Internet banking services 59

Table A3- 6 One-Way ANOVA for the service that the respondents use the most 59

Table A4- 1 Mean value and standard deviation analysis 60

Table A4- 2 KMO value and Bartlett‟s Test of customer satisfaction factor 61

Table A4- 3 Total variance explained by the components of customer satisfaction factor 61

Table A4- 4 Component matrix of customer satisfaction factor 61

Table A4- 5 KMO value and Bartlett‟s Test of the antecedents of customer satisfaction factor 62 Table A4- 6 Total variance explained by components of the antecedents of customer satisfaction factor 62

Table A4- 7 Component matrix of the antecedents of customer satisfaction factor 63

Table A5- 1 Reliability test of customer satisfaction factor 64

Table A5- 2 Reliability test of reliability factor 64

Table A5- 3 Reliability test of ease of use factor 64

Table A5- 4 Reliability test of confidentiality and security factor 64

Table A5- 5 Reliability test of speed of responses factor 65

Table A5- 6 Reliability test of continuous improvement factor 65

Table A5- 7 Reliability test of products/services diversification factor 65

Table A5- 8 Multiple linear regression 66

Table A5- 9 Conclusion of hypothesis testing 66

vi

LIST OF FIGURES

Figure 3 1 Proposed Model 18

Figure A2 1 Gender description 53

Figure A2 2 Age description 53

Figure A2 3 Education description 54

Figure A2 4 Monthly income description 54

Figure A2 5 Description of how long the respondents use Vietinbank‟s Internet banking services 55

Figure A2 6 Description of frequency that the respondents use Vietinbank‟s Internet banking services 55

Figure A2 7 Description of which Vietinbank‟s Internet banking services the respondents use the most 56

vii

ABSTRACTS

In Vietnam, the popularity of internet in recent years has opened a potential market for E-banking services in Vietnam Moreover, the government and the State Bank of Vietnam have also created legal framework through the promulgation of laws, circulars, decrees and decisions that encourage the development of E-banking Especially, “Electronic transaction law 2005” has

created the basic legal framework for electronic transactions

Internet banking services have been implemented in Vietnam but it has developed strongly especially in urban areas Due to the preeminent features of internet banking such as saving time and money, convenient transaction ., commercial banks in Vietnam have developed this type of service and created the competitive environment to win customers

Meanwhile, customers are aware of the benefits of internet banking but are still concerned about the safety and security of internet banking Therefore, customers should undergo the process of analyzing the choice between different types of services and between different brands to decide the behavior of using internet banking

Internet Banking is a new type of banking service in Vietnam and therefore, in-depth and comprehensive research into consumers‟ satisfaction with Internet Banking will be significant for banks as well as for the people themselves

Starting from these practical issues, with the desire to improve the quality of Internet

Banking service, this research topic “Factors affecting the satisfaction of customers to Internet Banking ofVietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) - Ba Dinh Branch" hopes to contribute little help to have orientation and solution

to improve the quality of service and make the most use of it

CHAPTER 1: INTRODUCTION 1.1 Research reasonale:

The development of information technology in banking has significantly changed the business strategy of many commercial banks Instead of providing traditional banking services, commercial banks are taking advantage of information technology, especially the internet, to provide customers with modern banking services (this is called electronic banking)

E-banking services bring many benefits to the bank such as reducing the number of employees, branches, increasing the number of transactions thereby reducing costs and increasing profits For customers, e-banking services enable customers to trade quickly, conveniently, and save travel time, transaction costs…

Vietnam is one of the countries with the highest number of Internet users in the world (nearly 40 million users, 14 in the world) The high number of internet users with strong growth has created favorable conditions for the development of e-commerce in general and e-banking in particular Currently, the level of competition in e-banking services

in Vietnam is getting higher everyday, if in 2004 Vietnam had only three banks providing electronic banking services, by the end of 2014 there was 43 banks that provided the service Therefore, in order to be competitive in this area, Vietnamese commercial banks are actively investing in electronic infrastructure, however, banks have yet to meet the growing demand

of customers so they still have not satisfied their customers and have not found the loyal customers

On the other hand, in order to be competitive in e-banking, banks need to understand the criteria that customers use to evaluate the quality of e-banking services, so that they can have solutions to improve the quality of service and customer satisfaction To do so, it is necessary to build a research model that defines the relationships among criteria that reflect the quality of e-banking services with customer satisfaction and loyalty under the impact of other intermediaries (switching costs, customer trust ), thus providing direction for the competitive strategy of banks

With the online transaction utilities, just by one single-mouse-click, customers can make all forms of basic banking such as transferring, placing orders and transferring money periodically and check any account balance whenever they want

Many previous studies measured customer satisfaction in traditional banking environments, where direct interaction between customers and bankers occurs (Johnston

1995, Bahia & Nantel 2000) However, for online banking, the interaction between

customers and banks does not occur directly on the Internet Therefore, Vietinbank needs to understand the customer's perception of online banking services, the expectations of customers to evaluate the products that the bank provided is satisfactory or not

Therefore, the study “Factors affecting the satisfaction of customers to Internet Banking of Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) - Ba Dinh Branch"is very necessary and timely It helps Vietinbank to have a

more general view of the satisfaction of internet banking from the perspective of individual consumers Through this research, to find out what factors most affect customer satisfaction

in order to maintain the development, besides to overcome the factors are not satisfactory to increasingly satisfy customer From that Vietinbank-Ba Dinh Branch will have more effective plans for its products and services, satisfying the criteria of convenience and safety

"whenever and wherever", which product aim for

1.2 Questions and research objects:

The core objective of the research is to focus on the factors that affect the personal satisfaction of customers using online banking services of Vietinbank, Ba Dinh Branch Identifying these factors has important implications for the managers of Vietinbank, based

on that, they will have the right direction, development and investment for their products and services Therefore, the research objectsfocus on:

- Description of customers' behavior of using Internet Banking services

- Developing a model to study the factors that affect the satisfaction of customers using internet banking

- Recommend some solution to the banking management to satisfy customers' need

To properly address the research objectives, set out, the following research questions should be clarified:

- What factors affect the satisfaction of individual customers using online banking services of Vietinbank, Ba Dinh Branch?

- Research will use specific methods to build and test the model of factors that affect customer satisfaction, thereby determining which factors have the most influence on satisfaction of customers? Based on that, the writer will find a different approach to customers with traditional methods and bank managers also have direction in the business of Vietinbank, especially the online banking service

1.3 Research Methods:

1.3.1 Research objects

The research focus on the Internet banking services of typical commercial banks in Nha Trang city The main aspect is from the consumer perspective to determine the factors that affect the satisfaction of individual customers using internet banking services

1.3.2 Research area:

Survey‟s time: from November 2017 to May 2018

Survey conducted on 200 individual customers are using online banking services of Vietinbank, Ba Dinh Branch

1.3.3 Research methods:

The formal study was conducted by means of quantitative research using direct interview techniques through detailed questionnaire The questionnaire contained 30 statements about satisfaction and the factors that affected customer satisfaction Each statement is measured on a 5-point Likert scale Sampling is a method of quota combined with convenience After three months of data collection, 200 useful questionnaires were processed and analyzed Use SPSS 16.0 software to assist in data processing

1.4 Practical meaning of the topic

This research has brought some theoretical as well as practical implications for VietinBank that has been deploying internet banking Internet banking is a new service that Vietinbank has just launched in recent years Access to this service is relatively new to most customers Therefore, the topic of focusing on cognitive and customer needs for internet banking services is very practical for VietinBank executives, to capture the main factors affecting the Satisfaction of customers This is a way for VietinBank Ba Dinh to improve the quality of services, enhance competitiveness, contribute to the direction of the government is

to develop non-cash economy

1.5 Overview of past research on the subject:

In order to carry out the study, the author consulted many directly and indirectly relevant research papers and works of scholars at home and abroad to carry out the study of sobriety and loneliness as well as constructing Research models

The quality of service in general and the satisfaction of customers in providing services of enterprises in particular is a matter of decisiveness, competitiveness and customer loyalty Customer Satisfaction Research is widely regarded not only by domestic and foreign researchers, but also by various business sectors in many production areas

Customer satisfaction according to many studies is the satisfaction of customers, express services provided by the business meet the requirements and expectations of customers Authors often value customer satisfaction through quality of service, if customers value quality services, they are satisfied with the service they provide

Customer Satisfaction Model is associated with the service quality model, with the participation of several authors such as Gronroos (1984), Parasuraman et al (1988), Cronin

& Taylor (1992) , Mangold & Babakus (1991), Richard & Allaway (1993), Dobhalkar & Associates (1996), Lassar & Associates (2000), Nguyen & Associates (2003), Nguyen Thi Mai Trang (Journal of Science and Technology Development No 9-2006), Pham Le Hong Nhung et al (2012) Studies of service quality and customer satisfaction of quality of service have come from the Parasuraman study that has built up a mixed-up tool called Servqual containing 22 items according to the Likert scale Flatter the expectations and feel the customer's actual quality of service Research results show that the five components include: reliability, visibility, responsiveness, assurance, and empathy

The MK.Kim and his colleagues' customer satisfaction model is based on customer satisfaction based on six factors: perceived quality, price structure, image brand image, impact of advertising, value added services, customer service

Nguyen Thi Mai Trang is in the Science and Technology Development Journal Volume 9, No 18-2006: "Quality of service, satisfaction and loyalty of supermarket customers in Ho Chi Minh City" This study examines the relationship between supermarket service quality, satisfaction and customer loyalty when shopping at a supermarket With the research variables constituting the quality of the supermarket service, the study points to the correlation and impact of the quality of the supermarket service that influences customer satisfaction and loyalty The quality, content and research results in the literature can be consulted for funding

Nguyen Dang Duy Nhat & Le Nguyen Hau (Journal of Science and Technology Vol

10, No 8, 2007), "Factors influencing quality of retail service - research in supermarkets in

Ho Chi Minh City " This research aims to identify the components of the quality of retail supermarket services in Vietnam through customer surveys and factor analysis to confirm the influence of each factor of service retailquality of supermarkets Customer satisfaction is measured by the quality of service, ie the components of service quality have a positive relationship with customer satisfaction

Cronin Taylor (1992) in the study "Measuring service quality: reexamination and extension" published in the journal Marketing expresses the concepts of service quality and the relationship between quality of service and satisfaction of Customer with purchase flattery The research evaluates the importance of service quality in satisfying customer satisfaction and through its influence on customers' purchasing habits

1.6 Proposed structure of the thesis

In addition to the introduction, conclusion, reference list, list of tables, annex, thesis

is divided into 5 chapters:

Chapter 1: Introduction

Chapter 2: Theoretical Foundation

Chapter 3: Research Methods

Chapter 4: Data Analysis and Key Finding

Chapter5: Conclusion and Management Implication

Summary of Chapter 1:

Chapter 1 introduced the basics of research, research questions and objectives, research methodology and scope, practical meaning of the topic These issues partly explain the reasons for choosing the topic and at the same time help the author orient properly to continue to search for the theoretical basis for the research, limit the deviation or inadequate shortcomings in the research process

In the next chapter, the rationale for the research topic as well as the building up of the scale are firmly established, contributing to convincing the results of the research These theoretical bases are derived from previous studies or from reliable sources with citations

CHAPTER 2: THEORITICAL FOUNDATION 2.1 E-commerce and Internet Banking

However, the term e-commerce is still not fully understood (Wigand, 1997) [160] There are many different definitions of e-commerce, some of the world's leading organizations define e-commerce as:

According to the World Trade Organization (WTO) [177], "E-commerce involves the production, advertising, sale and distribution of products traded and paid on the Internet, tangible, both delivery products as well as digital information through the Internet"

According to the Asia-Pacific Economic Cooperation (APEC) [177] define: commerce involves trade transactions of goods and services between electronic groups (individual) are primarily electronic systems based on the Internet." Communication techniques such as email, EDI, the Internet and the Extranet can be used to support e-commerce

"E-According to the European Commission [177]: "E-commerce can be defined as the sale, exchange of goods or services between businesses, families, individuals and private organizations by transactions The term includes placing orders and transactions through a computer network, but the payment and transportation of goods or services can be done online or manually."

Some authors also have different definitions of e-commerce: Zwass (1996) [176] defines e-commerce as sharing information, maintaining relationships and conducting transactions through means of using Internet technology

Savoie and Raisinghani (1999) [149], e-commerce allows a consumer to have immediate access to all the products or services that his customers are interested in, at any time, with a simple click

According to Turban et al (2000) [162], e-commerce is the process of purchasing, selling, shipping, exchanging products, services and information through computer networks, including the internet They also argue that e-commerce can be defined in terms of different aspects, such as the process of communication, commerce, service and business

From the corresponding services, they define: e-commerce is the tool by which governments, companies, consumers and regulators aim to cut down on service costs while still improving the quality of customer care service and speed up shipping service

In addition, Jelassi and Enders (2004) [95] define e-commerce as solving transaction problems, selling products and other services online

From the definitions and descriptions listed above, it is easy to see that the concept

of e-commerce is used in both broad and narrow sense It is the use of internet to communicate and exchange information about products and services However, e-commerce also includes business transactions related to online ordering and payment (Lin, 2003) [114]

2.1.2 Internet banking service

2.1.2.1 Definition of internet banking service

So far, there have been a lot of researches on internet banking topics in different approaches and there are many different concepts about the term "internet banking" Within the scope of the thesis study, the author extracts some concepts of "internet banking" in order to reinforce the rationale for the research problem

According to Apostolos Ath Gkoutzinis (2006), internet banking is a software application service that banks provide to customers via the Internet to conduct account inquiries, transfer money, pay bills, open online accounts, register cards, apply for online loans, etc on the Bank's website at any Internet access point and at any time without going

to the counter of a bank

Internet banking is the concept cut out in the context of electronic banking Although there are quite a few different definitions, according to Daniel (1999), e-banking is the delivery of information and services to banks for customers through different platforms that can be used with connected devices such as personal computers, mobile phones with browsers, desktop computers with software installed, phones, and digital TV Based on that e-banking can be divided into PC banking, internet banking, TV-based banking and telephone banking Electronic banking is a structure including

multiple distribution channels In which, according to Arunachalam & Sivasubramanian (2007), online banking is where customers can access their bank accounts through the internet using a computer or mobile phone with a web browser

Internet banking allows customers to transfer money online through their accounts as well as control the operation of these accounts Customers can access the website, in addition to query the information of the bank, customers can also make financial transactions The information that the customer queries is very rich, from customer

transaction details to other banking information Customers also have access to other websites to make purchases and make payments to the bank However, when connected to the Internet, the bank must have a strong security system to deal with the risks on a global scale This is a major obstacle for banks in Vietnam because to attract customers to their banks to invest in security systems including human resources and equipment cost is very expensive

Services provided by the bank for major internet banking services:

- Look up bank information, rates, interest rates, ATM / POS location

- Look up account information: balance, transaction history, transaction details

- Domestic payment transfer (also for customers who have not yet had bank accounts) and overseas

- Online savings deposit (set up term deposit account)

- Get electronic statements and electronic notices for your payment and credit card accounts

- Check and redeem points, and current promotions

- Pay off your regular loans and credit card debt

- Update your personal information, contact details

- Payment for financial services, telecommunications charges, electricity bills, water, tax

- Buy phone scratch cards, online game cards, book tours, buy air tickets

2.1.2.2 Advantages of internet banking for customers

The emergence of internet banking is a higher model of banking services such as Home banking or Phone banking With the aim of bringing more convenience to customers, meeting the higher and higher demand of customers, solving some obstacles on the time and place that customers often encounter

Internet banking is the direct connection between the commercial bank's payment software system and the system of service providers to provide payment services between customers and service providers

Internet-banking allows customers to contact the bank quickly and conveniently to perform some business at anytime and anywhere This is particularly meaningful for customers who have little time to go to the bank's head office, which is convenient for those with a high transaction volume with relatively low transaction value without cash Moreover, with standardized banking standards, customers are always dedicated, rather than depending on

the different service attitudes of each bank employee This is a remarkable advantage of Internet-banking compared to traditional banking

Speed and accuracy: Internet banking allows customers to make and validate transactions with high accuracy and speed in seconds

Cost savings: Internet-banking transaction costs are lower than at the counter, customers do not have to pay extra shipping costs

Efficiency: Customers actively manage their entire accounts, capture the details of each transaction, and provide customers with the most up-to-date but completely free information from the bank's website

2.1.2.3 Advantages of internet banking services for banks

Cost Savings: Banks do not have to pay rent, do not have to hire a security guard, do not have to hire more staff to work, no cost to buy equipment to organize and equip the operation at Office dealing with customers Thus, online banking often gives customers more returns than traditional banks

Extend the scope and duration of operations: customers are not limited in terms of geographical location as well as the operation time of the bank Customers can trade with banks anywhere, anytime they feel most comfortable

Banking Modernization: Providing Internet banking services to customers means that banks always use and develop modern technologies, thus helping banks to innovate, integrate and develop not only serving the domestic market but also towards overseas markets

2.1.2.4 Disadvantages of internet banking services for customers

Customer Ability: Customers must have certain knowledge in using the internet, the principles of setting and using passwords, security to use application programs from the bank, as well as customers must be able to protect their own account to avoid being exploited This is the biggest obstacle when the internet banking services were deployed in Vietnam market, when the user's knowledge is not really catch up with the new process Means of using: When using Internet-banking, the user should have a personal computer to carry out his transactions to ensure safety in the transaction process, the customer transaction area must have network Internet, customers must have additional equipment to receive dynamic passwords when performing transactions such as mobile phones, email

Safe: Personal computer security is very important for Internet-banking users because hackers infiltrate the computer and they control and access the user's account To improve security, computers need to install genuine software from reputable companies, a minimum

firewall, virus protection software, a password that is difficult enough (including lettering, numbers, uppercase letters, lowercase letters), regularly update new versions of software vendors, etc Besides, users should not visit strange websites, unknown background to avoid dealing with phishing sites, stealing information and money on account

Confidentiality: When making transactions on Internet-banking, in order to protect their information, the user must access the correct website address on contract Normally banks use the form of encrypted information transmitted over the internet by a professional security company These are sites that usually start with https instead of http, and at the bottom of the page there must be a lock image This prevents the user from visiting the fake website

Information: When dealing face-to-face with employees, customers will be provided with more complete information, direct consultations, face-to-face inquiries and more detailed information than Internet banking

2.1.2.5 Disadvantages of internet banking services for banks

Infrastructure: Most of the banks in Vietnam have poor infrastructure such as network quality, transmission speed, technical errors or terminals do not guarantee the quality leading

to the quality of service is not high In addition, new risks such as hackers, computer viruses can have a huge impact not only on banks but also on customers One of the most difficult aspects for the bank is the confidentiality of information for its customers, the bank's website has always been the target of hackers to steal personal information to rob money, customers‟ information, etc When connected to the Internet, the bank must build a strong security system to deal with the risks on a global scale As a result, the bank has to invest a high cost

of warning systems, modern global technology and effective preventive and management measures

Human resources: Human resources in the modern banking industry must ensure high quality human resources, and staff must be equipped with knowledge of foreign languages and information technology to catch up with new trends in the industry In order to do this, it takes a lot of time for the bank to convert its human resources, train new workers, and train old workers to overcome the weaknesses in governance and operation

2.2 Customer Satisfaction:

2.2.1 Concepts of customer satisfaction

The results from the research using customer satisfaction index in banking business strategy plan of Le Van Huy, Da Nang University showed that "customer satisfaction" is the target for all activities of all businesses Real business shows that if a 5% increase in loyal customers increases the profit margin by 25-85%, or, on average, a dissatisfied customer

will tell the frustration to nine listeners and one satisfied customer will tell the other five about the good feelings for their products or services of the business So, when a business does not satisfy its customers, not only does the business lose that customer but it also loses

a lot of potential customers

Customer satisfaction has been defined in different contexts by different authors Some definitions are given as follows:

According to Miller (1977), consumer satisfaction is the result of the effects between expected levels of anticipation and actual attainment So far, there are many different definitions of consumer satisfaction from different perspectives, but they contain four common elements:

- The expression of the product or service that is captured by the consumer

- Expectation of consumers about the product

- Cost is perceived or "sacrificed" when purchasing goods or using products / services

- Time to evaluate the satisfaction with the product / service

Overall, customer satisfaction is an important issue for the success of any traditional

or online business (Ho & Wu, 1999) Measuring customer satisfaction with the quality of service is essential to develop effective marketing research strategies to influence the minds

of consumers (Zairi, 1994) Especially, in the increasingly ecommerce environment, the market share between companies is constantly changing in the short term Therefore, the problem is to find out what customers need from the business or other than how the business must have a business strategy to obtain customer satisfaction, so that the establishment of the long-term relationship with customers

Some concepts of customer satisfaction have been drawn from previous studies: For Philip Kotler & Keller (2006), customer satisfaction is the level of a person's sense of place that results from comparing the results obtained from the consumption of the product / services with their own expectations Satisfaction depends on the difference between the results received and the expectations of customers, there are three levels for customer satisfaction:

If the actual results are lower than expected, the customer is not satisfied

If the actual results match the expectations then the customer will be satisfied

If the actual results are higher than expected, the customer is very satisfied

According to Oliver (1997), customer satisfaction is the response of consumers, the comment on the characteristics of products, services or the self of this product or service Reflections will show different levels of satisfaction with different products and services

Thus, customer satisfaction is the result of a measure of a person's sense of state derived from comparing the results obtained from a product or service with his or her expectations As for online banking, there are many different views on customer satisfaction

Customer satisfaction is a multifaceted concept, which includes many factors that can affect individual customer satisfaction According to Kenova & Janasson (2006) in the study of online banking quality measurement, four factors measure service quality: site design, effectiveness, implementation and availability The system has an impact on customer satisfaction Saha & Zhao (2005) recommend five factors that affect customer satisfaction: efficiency, performance, reliability, privacy, feedback Yang & Tsai (2007) have demonstrated that service quality measurement factors that influence customer satisfaction in the online purchasing arena include: effectiveness, performance, availability privacy, feedback, compensation and affiliation

2.2.2 The relationship between customer satisfaction and service quality

Researchers have been discussing the relationship between quality of service and customer satisfaction over the past decade

Lassar & ctg (2000) conducted several studies on customer satisfaction in the service industry and generally concluded that service quality and satisfaction were two distinct concepts

But for Zeithaml & Bitner (2000), the notion of customer satisfaction is one that speaks to their satisfaction when consuming a service, also when it comes to quality of service is concerned about the specific components of the service

Oliver (1994) argues that service quality affects customer satisfaction That is, quality of service - determined by various factors - is a decisive factor of satisfaction

Numerous practical studies on the relationship between quality of service and customer satisfaction Cronin & Taylor (1992) validated this relationship and concluded that customer satisfaction was rooted in perceived quality of service Studies by Cronin & Taylor (1992) and Spreng & Mackoy (1996) have concluded that quality of service is a precondition for satisfaction and a major factor in satisfaction Therefore, we can see the satisfaction of customers about a certain service is also due to the quality of the service it creates

2.3 Factors affecting the Customers' Satisfaction to Internet Banking:

Based on previous domestic and foreign research models of many authors, the satisfaction of customers when using internet banking services is reflected through factors such as ease of use, web design, customer service, the availability of the system, confidential

and security, speed of responses… selected for the studies, based on the Criterion & Ptc (2007) PESQ perception service quality measurement model, and these factors were reviewed and verified by the authors like Ho & Lin (2010), Tran Tuan Mang (2011)… In addition, the factors related to internet banking quality in the previous study by Xiuyuan Gao (2013) and Loiacono et al (2002) were also included in the model In the context of fierce competition, bank with high reliability is more competitive That why I add

"reliability"as a factor to myproposed model

Ease of Use Cristobal & ctg 2007; Kenova & Patrik

(2006), Alba & ctg 1997

Parasuraman et al (1988)

Confidentiality & Security Madu& Madu (2002); Kim& Lee (2004);

Park & Kim,2003; McKight & Chervany,2002)

Novak,1996; Kim & Stoel (2003); Weinberg (2000)

Continuous Improvement Otellet (2008); Loiacono & Partners (2007) Services/Products Diversification Cai, Card & Cole (2004); Kim, Ma & Kim,

2006; Ghosh & Anthony (2003)

Table 2 1The sources of factors that are included in the research model

Ease of use:

Internet banking services has the website which is easy to navigate.Web design involves displaying on the web, including content layout, updating information, user friendliness (Cristobal & ctg 2007) When making online purchases, the buyer perceives the benefits as a search cost (Alba & ctg 1997), without direct contact with the sales person (Zeithaml & Gt 2001) With just an internet connection, customers can easily access the online banking system through their own website According to Kenova & Patrik (2006), it

is proposed that website design affects customer satisfaction Accordingly, I also included in

my study the hypothesis H1 as follows:

Reliability:

Reliability means honoring the commitments in areas such as billing accuracy, proper record maintenance and delivering the service within acceptable time limit (Saha and Zhao, 2005) It also refers to the correct technical functioning of a self-services technology and the accuracy of service delivery (Weijters et al.,2005, p.9) Many authors have detected that reliability is significant in the determination of service quality (Bagozzi,1990; David et al.,1992; Parasuraman et al., 1988; Zeithaml & Bitner, 2000) Parasuraman et al (1988) also considered reliability of the service as an important factor of service quality Finally, Dabholkar (1996) in his study revealed that reliability and accuracy are appropriate measure for assessing service that must do with technology

Speed of Responses:

The speed of access and response time of the website play an important role in the online supply of products and services of enterprises as well as the formation of customer satisfaction (Chen & Dibb, 2010) Many studies have demonstrated the same correlation between website access speed and customer satisfaction as factors that help establish and maintain customer relationships (Hoffman & Novak, 1996) Kim & Stole (2003) believes that rapid response times have a significant positive effect on customer satisfaction in online shopping behavior Weinberg (2000) suggests that once the load speed of the website is fast enough, efforts to achieve customer satisfaction will be completed Therefore, in terms of maturity and time savings for customers, the rapid response time in searching for service information as well as transaction execution can satisfy online transaction behavior of customers of the business

Confidential & Security:

Websites usually store and manage a large amount of customer information through transaction history between customers and businesses Therefore, the safety and security of the website becomes one of the top concerns of customers when conducting online transactions as well as contribute to create customer satisfaction Madu & Madu (2002) Said that the provision of services through the internet must be reliable to gain credibility and trust from customers Similarly, Ho & Lee (2007) found that the security of online transactions was extremely necessary because customers almost bought products and services online without any in-kind exchanges such as cash or credit card According to Kim

& Lee (2004), the security of a website is defined as a combination of attributes that allow customers to be assured that the website is safe and user friendly when performing transactions Consequently, once a customer feels the level of security of the website meets

their expectations, the customer will disclose their transaction data to a more willing service provider (Park & Kim, 2003; McNight & Chervany, 2002)

Continuous Improvement:

The popularity of the internet and modern technology help the website to keep date with new features to meet the increasing demands of customers Ouellet (2008) reviewed the innovation of the website through the "update" feature Loiacono & Associates (2007) identified improvements as an important component of website quality measurement and defines this feature as "innovative and unique" The more frequently updated and updated websites will gain stronger competitive advantage than other competitors in the same industry In addition, the innovative features of the Website also mean that many new technologies and products will be constantly updated and introduced to customers Once customers feel these features facilitate their online transactions, customers will access, use and trade more frequently with the Website

up-to-Service/product diversification:

The quality of information regarding the accuracy and content of information about the products and services is provided on the website Customers visit the website of any service provider to find useful information about prices, product categories or new advertising campaigns Therefore, providing accurate and up-to-date information is the primary goal of a website (Kim & Lee, 2004) According to Cai, Card & Cole (2004), detailed and varied sources of information are one of the main motivators for online transactions because websites always personalize customer transactions Better serve them (Kim, Ma & Kim, 2006) Surprisingly, Surjadjaja, Ghosh & Antony (2003) argue that updated sources have a great influence on consumer purchasing decisions Peterson, Balasubramanian & Bonnenberg (1997) show that superior information quality through online transactions promotes higher purchasing behavior and customer satisfaction, as well

as helping service providers maintain their relationships Good relationship with customers Barnes & Vidgen (2002), Loiacono & Associates (2002) believe that quality of information Website plays a decisive role in the success of a website - Important variables which have a positive impact on the formation of customer satisfaction

2.4 Reality of internet banking services by Ba Dinh branch

2.4.1 The development of internet banking services of Ba Dinh Branch

Internet Banking: A method of dealing with VietinBank over the internet was started

in 2008 Only one computer with internet access and access code provided by the bank and accessing the website: www.vietinbank vn and execute the transaction quickly

At present, VietinBank is providing 2 Internet Banking packages for individual customers and corporate customers, which are basic Internet Banking package and advanced Internet Banking package With the basic Internet Banking package, you will only be able to look up demand and term account information as well as look up transaction history Advanced Internet Banking offers more convenience, besides basic utilities, the advanced package offers additional utilities such as in and out of system transfers; open - pay - reschedule savings account; payment for electricity, water, telephone, topup phone

Authentication method: When applying forms of transfer, opening / closing time accounts online on Internet Banking, bill payment, TOPUP ., customer authentication by entering security chain From Token or SMS is sent to the main mobile phone number that has registered SMS Banking service

2.4.2 Characteristics of internet banking services of Ba Dinh Branch

- Costs of deploying Internet Banking Service:

For Internet Banking service: Vietinbank should purchase modern high-performance computing Server system, high-speed internet connection to be able to support tens of thousands concurrent customer accesses These kinds of systems are often provided by foreign vendors with very high price There are also the cost of hiring IT engineers for IT network management, the cost of outsourcing the Viettinbank website system maintenance

Vietinbank constantly improves the quality of its services to provide the best experience to customers, one of which is internet banking services with outstanding facilities In 2017, Vietinbank was honored to receive the "Outstanding e-Banking Award"

by IDG Vietnam and the Vietnam Banks Association

Vietinbank provide a variety of services via Internet banking channel aiming at accelerating the number of transactions per day, reducing transaction costs and time, thereby ensuring the efficiency of banking transactions Vietinbank believes that the support of the convenient tools as well as up-to-date digital technology application will offer the best quality of service to its customers

2.4.3 Customer participation in internet banking

By December 2017, the number of individual customers and institutional customers using Internet Banking services is as follows: (According to the report of 2016 and 2017 of Vietnam Joint Stock Commercial Bank for Industry and Trade – Ba Dinh Branch)

Table 2 2 Implementation of Internet Banking in VietinBank Ba Dinh Branch

The table shows that the number of Internet Banking customers is increasing In

2015, there are 5892 customers using the service but by 2016 it has reached 6932 customers and to 8397 in the end of 2017 Next, we will study the structure of customers using Internet Banking

Table 2 3 Customer structure using Internet Banking

- Other plans include: housewife, household business, business plan and other current plan

- Through the analysis can see the object of using banking services

- The electronics are mainly customers who are working, for 3 years always on60% and is

Internet Banking‟s revenue million 1.342,384 1.683,287

Table 2 4 Business results of Internet Banking services

Throughtable 2.3, the results of Internet Banking services show that Internet Banking service revenue is increasing, along with the increase in number of transactions Show that more and more customers use the service The situation of Internet Banking service of the Bank is fairly stable

Summary of Chapter 2:

Chapter 2 focuses on the satisfaction of individual customers using online banking services, thereby introducing a five-factor model that can influence customer satisfaction These factors include: ease of uses, customer service, assurance, system availability, and advertising promotions Base on that Chapter 3 will present qualitative and quantitative research methods

CHAPTER 3: RESEARCH METHODS

3.1 Research model and Hypothesis:

As discussed in Section 2.3, there are 6 factors that affect the satisfaction of customers using

internet banking services as follows:

The basis objective of this thesis is to investigate "The Factors affecting the satisfaction of customers to Internet Banking in VietinBank-Ba Dinh Branch" The research model for this study is shown in Figure 3.1 The independent variables affect to customer satisfaction are the six identified characteristics We hypothesize that all those attributes have a positive impact on the satisfaction of customers

Figure 3 1 Proposed Model

3.2 Development of research hypothesis:

Ease of use: (EOS) is defined as the perception of users about services that it is easy to use

and it doesn't require any mental effort (Rehman et al.,2013) In this thesis, it is mentioned through friendly web design The most important thing is that customers feel easy to

navigate and do transactions online quickly

H1: The Ease of Use has a positive effect on the Customer Satisfaction

Reliability: (REL)honoring the commitments in areas such as billing accuracy, proper

record maintenance and delivering the service within acceptable time limit (Saha and

Zhao,2005)

H2: The Reliability has a positive effect on the customer satisfaction

Speed of Responses: (SOP)The speed of access and response time of the website play an

important role in the online supply of products and services of enterprises as well as the

formation of customer satisfaction (Chen & Dibb, 2010)

H3: The Speed of responseshas a positive effect on the customer satisfaction Confidential & Security: (CAS)Websites usually store and manage a large amount of

customer information through transaction history between customers and businesses Therefore, the safety and security of the website becomes one of the top concerns of customers when conducting online transactions as well as contribute to create customer satisfaction Madu & Madu (2002) Said that the provision of services through the internet

must be reliable to gain credibility and trust from customers

H4: The Confidential & Security has a positive effect on the customer satisfaction Continuous Improvement: (CIM)The popularity of the internet and modern technology

help the website to keep up-to-date with new features to meet the increasing demands of customers Ouellet (2008) reviewed the innovation of the website through the "update" feature Loiacono & Associates (2007) identified improvements as an important component

of website quality measurement and defines this feature as "innovative and unique"

H5: The Continuous Improvement has a positive effect on the customer satisfaction

Service/product diversification: (SPD) The quality of information regarding the accuracy

and content of information about the products and services is provided on the website Customers visit the website of any service provider to find useful information about prices,

product categories or new advertising campaigns

H6: The Service/products diversification has a positive effect on the customer satisfaction

of service as well as the satisfaction of the customer to deliver the appropriate scale

The qualitative study was conducted by discussing with the eight experts of VietinBank –Ba Dinh Branch to explore the concepts and features of the Internet Banking service to draw out the questionnaire Next, do quantitative research by examining about 30 clients using a convenient sampling technique to detect the errors of the questionnaire as well as the scale From there, draw outa formal questionnaire for the research

The quantitative Study is to identify the scales for key concepts of research based on the results of group discussions The questionnaire was formulated including scales (according

to the questionnaire attached)

Collect the sample and process the data Data collected were processed by SPSS 16.0 software to draw out the conclusion from the hypothesis Finally, the results from SPSS will

be analyzed, explained, presented on the research report

The Measurement Scale: 3 parts

Part 1: Demographic information: clients provide some private information like gender, age, education, and monthly-income

Part 2: Some questions about clients'behavior of using Internet Banking Services Part 3: Questions about how the clients feel about the quality of some services of Internet Banking and the how strong they feel about those products/ services This part includes 18 statements about 6 service quality characteristics and 3 statements for customer satisfaction

The questionnaireused the Likert scale of 5 points, with 1 being strongly disagree and 5strongly agree These was sent to clients of Vietinbank Ba Dinh Branch in paper version

And final, customers can give some requests for the bank

REL1 The bank performs internet banking

services correctly right at the first time

Han & Baek (2004)

REL2 Information which is provided in internet

banking services is accurate

REL3 The information is always up to date in

internet banking services

EOS1 Internet banking services do not require

me to put a lot of efforts

Parasuraman & ctg (2005) EOS2 I feel comfortable to use computer for

internet banking services

EOS3 Internet banking services has the website

which is easy to navigate

CAS Confidentiality and Security

CAS1 I do not concern about the security of

internet banking services

Ho & Lin (2010) Parasuraman & ctg (2005) CAS2 I do not concern about the privacy of

internet banking services

CAS3 I feel trust when using internet banking

services

SOP1 The speed of login your accounts of

internet banking services is fast

CIM1 The bank frequently updates internet

banking services with new features

CIM2

The bank has employees to record the

customers‟ demands related to the

features of internet banking services

Loiacono & Associates (2007)

CIM3 The errors of the website of internet

banking services are fixed quickly

SPD Services/Products Diversification

SPD1 The bank provides wide range of services

in its internet banking services

Kim & Lee (2004) Cai, Card & Cole (2004) SPD2 The bank provides internet banking

services with features I want

SPD3 All my services that I need are integrated

into menu options

CSA1

My expectation before using internet

banking services is fulfilled after using

internet banking services

Yang & Associates (2004)

CSA2 I completely satisfy with current internet

Sample and sampling method: The main research samplewas the customers who

use internet banking, through the website of Vietinbank, especially the young customers Vietinbank – Ba Dinh Branch has 15 transaction offices, including 5 transaction offices of type 1 and 10 transaction offices of type 2, type 1 is bigger than type 2

Sample size was determined based on standard foundation 5:1 of Bollen (1998) and Hair & ctg (1998), it means to ensure good data analysis (EFA factor analysis), at least 5 observations for a measurement variable and the number of observations should not be less than 100 The study model included six independent factors with 18 observed variables So, the number of samples needed is at least 18 x 6 = 108

250 survey questionnaires were directly delivered to customers coming to Vietinbank transaction offices List of customers received surveyquestionnaires was chosen randomly.

Data gathering method:250 survey questionnaires delivered and 200 items collected after a week(80% feedback from customers)

Data analyzing method: After the appropriate number of samples was collected, I

used SPSS 16.0 to analyze the data with the coding scales

Frequency analysis is simple data analysis technique but it brings high value in term

of providing background information about demographic characteristics of 200 respondents who are involved into the survey of questionnaire as well as their behavior of using Internet banking services of Vietinbank – Ba Dinh Branch The researcher utilizes graph in Excel to interpret obtained results from frequency analysis

Descriptive statistics is fundamental data analysis technique and it outputs two

important indicators, including mean value and standard deviation value of a variable It is denoted that mean value provides the result of the respondents agree or disagree with a statement while standard deviation value hints how the respondents provide the assessment truly or not

Explanatory factor analysis(EFA) is commonly utilized when the researchers want

to reduce the number of variables in order to avoid the complexity in data analysis In this study, EFA is conducted for customer satisfaction and its antecedents EFA for the antecedents of customer satisfaction is conducted for the group of reliability factor, ease of use factor, confidentiality and security factor, speed of responses factor, continuous improvement factor, and products/services diversification factor

The first requirement of EFA is that the researchers have to calculate KMO value and it is tested by a Chi-Square test, named as Bartlett‟s Test The objective of calculating KMO value and conducting Bartlett‟s Test is to assure that EFA is good for using and EFA

is applicable when KMO value is higher than 0.5 and Bartlett‟s Test is statistical significant

at 5% of confidence interval On the other hand, p-value of Bartlett‟s Test is less than 0.05

The second requirement of EFA refers to the generation of new components The number of new component is decided upon on how many components that are chosen from the dataset The criteria to select the components is the ones which have initial eigenvalues higher than 1.0 Moreover, it is required to check cumulative variance explained values of the components which have initial eigenvalues higher than 1.0 It is denoted that cumulative variance explained value of these components must be higher than 50%

The third requirement of EFA is through the value of factor loading of the items inside each component It is required that each item must have factor loading value higher than 0.50 On the other hand, the items which have factor loading values less than 0.50 will

be removed from their belonged component

Reliability test analysisis applied in this study to explore what the reliability level in

the survey‟s scale of each factor In this context, there are 7 reliability tests which are applied for reliability factor, ease of use factor, confidentiality and security factor, speed of responses factor, continuous improvement factor, products/services diversification factor, and customer satisfaction factor

Cronbach’s alpha is a measure of internal consistency, that is, how closely related a

set of items are as a group.It is considered to be a measure of scale reliability In addition to measuring internal consistency, if you wish to provide evidence that the scale in question is unidimensional, additional analyses can be performed.Cronbach‟s alpha is not a statistical test – it is a coefficient of reliability (or consistency)

It is denoted that reliability test comes up with 3 requirements The first requirement

is to check the overall reliability level of the survey‟s scale of one factor and acceptable reliability level is recorded when Cronbach‟s alpha of this factor is higher or equal to 0.6 The second requirement refers to the correlation among variables which are belonged to this factor and it is required that correlation value of one item must be higher than or equal to 0.3 The last requirement is that when one item is deleted, Cronbach‟s alpha is recalculated with the value is less than or equal to Cronbach‟s alpha which is obtained from the first requirement‟s checking

ANOVA analysis:

- Independent Sample T-Test is applied for gender variable due to it has two dimensions as male and female This test is formulated under T-Test and p-value higher than 0.05 shows that male and female do not provide different assessment Independent Sample T-Test helps the researcher to determine whether the impact from gender to each factor is significant or not

- One-Way ANOVA is applied for the variable which has more than two dimensions in its structure One-Way ANOVA helps the researchers to detect which variable has significant influence on the assessment of the respondents towards each factor In this study, One-Way ANOVA is applied for other demographic variables and the variables that reflect the behavior of the customers It is denoted that One-Way ANOVA is based on F-Test

Multiple linear regressionis the last data analysis and it is utilized to clarify the

causal relationship between two types of variables One is dependent variable and other is independent variables In this study, dependent variable is customer satisfaction and independent variables include reliability factor, ease of use factor, confidentiality and security factor, speed of responses factor, continuous improvement factor, and products/services diversification factor

CHAPTER 4 DATA ANALYSIS AND KEYS FINDING

In this chapter, the researcher conducts the examination of the results which are extracted from quantitative research method It is denoted that the results are derived from certain data analysis techniques, including frequency analysis, descriptive statistics, reliability test, explanatory factor analysis (EFA), ANOVA analysis, and multiple linear regression Primary data for these data analyses is collected from the survey of questionnaire with 200 respondents who are the customers of Vietinbank – Ba Dinh Branch

The main research sample was the customers who use internet banking, through the website

of Vietinbank, especially the young customers Vietinbank – Ba Dinh Branch has 15

transaction offices, including 5 transaction offices of type 1 and 10 transaction offices of type 2, type 1 is bigger than type 2

250 survey questionnaires were directly delivered to customers coming to Vietinbank transaction offices List of customers received surveyquestionnaires was chosen randomly And

200 items collected after a week (80% feedback from customers) which are 99 male and 101

female

Personal Information N=200 respondents

How long the respondents use

Vietinbank's Internet Banking

Table 4 1Description of sample

Frequency analysis is simple data analysis technique but it brings high value in term

of providing background information about demographic characteristics of 200 respondents who are involved into the survey of questionnaire as well as their behavior of using Internet banking services of Vietinbank – Ba Dinh Branch The researcher utilizes graph in Excel to interpret obtained results from frequency analysis

There are four demographic information which are collected from the survey of questionnaire, including gender, age, education, and monthly income The first information

is gender and it includes male and female people Obtained result is presented in Figure A2.1 to A2.4in the Appendix 2:

Figure A2.1 provides the result of which there are 101 female and 99 male respondents are participated into the survey of questionnaire The percentage of female and male group are 50.5% and 49.5% accordingly The number of female respondents is not much higher than the number of male respondents

Figure A2.2 provides the result of which the age of 200 respondents is segmented by different groups It is concluded that the respondents have age mostly between 20 years old and 40 years old because of there are not so many respondents who have age less than 20 years old and more than 40 years old In more detail, there are only 6 respondents who have age less than 20 years old while there are 18 respondents who have age more than 40 years old In the group of age more than 40 years old, the numbers of respondents who have age 41-45 years old, 46-50 years old, and more than 50 years old are 10, 6, 2 accordingly Other while, there are 42 respondents who have age between 20 and 25 years old (21.0%), 48 respondents who have age between 26 and 30 years old (24.0%), 48 respondents who have age between 31 and 35 years old (24.0%), and 38 respondents who have age between 36 and

40 years old (19.0%) It is concluded that most of the respondents in this study are still young and they are the target customers of Internet banking services of Vietinbank – Ba Dinh Branch

Figure A2.3 provides the result of which education background of 200 respondents is explored accordingly The main conclusion is that the respondents who are participated into the survey of questionnaire have good education background because of 103 respondents are graduated while 10 respondents are post-graduated Moreover, there are 87 respondents who obtain certain degrees from vocational schools in Vietnam

Figure A2.4 provides the result of which monthly income is divided into four groups, including less than 10VNDm, 10-15VNDm, 15-20VNDm, and more than 20VNDm There are only 4 respondents who have monthly income more than 20VNDm and it is true since more than 20VNDm is quite high monthly income level in Vietnam Moreover, there are 59 respondents who have monthly income less than 10VNDm, 67 respondents who have monthly income between 10 and 15VNDm, and 70 respondents who have monthly income between 15 and 20VNDm

4.2 Validation of the Scale:

4.2.1 Explanatory factor analysis of customer satisfaction factor

The first requirement of EFA of customer satisfaction factor is presented in Table 4.2 below:

Table 4 2KMO value and Bartlett’s Test of customer satisfaction factor

Bartlett's Test of Sphericity Approx Chi-Square 218.389

Table 4.2 shows that the first requirement of EFA is qualified for customer satisfaction factor It is showing that KMO value is 0.678 that is higher than 0.50 Moreover, Bartlett‟s Test returns p-value less than 0.05 or Bartlett‟s Test is statistical significant at 5% of confidence interval It is concluded that EFA can be used for the dataset of customer satisfaction and 3 items of this factor is put into further analysis

The second requirement of EFA of customer satisfaction factor is presented in Table 4.3 below:

Table 4 3Total variance explained by the components of customer satisfaction factor

is concluded that the second requirement of EFA is fulfilled for customer satisfaction factor The last requirement of EFA of customer satisfaction factor is presented in Table 4.4 below:

Table 4 4Component matrix of customer satisfaction factor

Table 4.4 indicates in details of the first component after it is selected in previous checking

of EFA process Component 1 has 3 items and the first item is the second item of customer satisfaction factor with factor loading value of 0.897 while the second and the third item refers to the first and the third item of customer satisfaction factor with factor loading values

of 0.846 and 0.826 respectively All factor loading values of these items are higher than 0.50 It is concluded that the last requirement of EFA is fulfilled for customer satisfaction factor is fulfilled accordingly

4.2.2 Explanatory factor analysis of the antecedents of customer satisfaction

The first requirement of EFA of the antecedents of customer satisfaction factor is presented

in Table 4.5 below:

Table 4 5KMO value and Bartlett’s Test of the antecedents of customer satisfaction factor

Table 4.5 shows that the first requirement of EFA is qualified for the dataset which is included all antecedents of customer satisfaction factor It is showing that KMO value is 0.605 that is higher than 0.50 Moreover, Bartlett‟s Test returns p-value less than 0.05 or Bartlett‟s Test is statistical significant at 5% of confidence interval It is concluded that EFA can be used for the dataset of the antecedents of customer satisfaction and all items of is put into further analysis

The second requirement of EFA of customer satisfaction factor is presented in Table 4.6 below:

Table 4 6Total variance explained by components of the antecedents of customer satisfaction

factor

Table 7 shows that there are 6 components to be extracted due to they have initial eigenvalues higher than 1.0 Cumulative variance explained by these 6 components is 69.640% and it is higher than 50% In more detail, initial eigenvalues of Component 1, 2, 3,

4, 5, and 6 are 2.975, 2.325, 2.111, 2.016, 1.612, and 1.497 respectively and the percentages

of variance are 16.529%, 12.914%, 11.728%, 11.199%, 8.955%, and 8.314% respectively The last requirement of EFA of the antecedents of customer satisfaction factor is presented

The description of each component is stated below:

 Component 1 is named as speed of responses with three items of this factor are presented Factor loading values of SOP1, SOP2, and SOP3 are 0.861, 0.873, and 0.849 and they are higher than 0.50