The impact of service quality con customer satisfaction in electronic banking at viet nam prosperity bank ho chi minh city

BANKING UNIVERSITY HO CHI MINH CITY --- LE THI YEN LINH THE IMPACT OF SERVICE QUALITY ON CUSTOMER SATISFACTION IN ELECTRONIC BANKING AT VIET NAM PROSPERITY BANK HO CHI MINH CITY GRADU

BANKING UNIVERSITY HO CHI MINH CITY

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LE THI YEN LINH

THE IMPACT OF SERVICE QUALITY ON CUSTOMER SATISFACTION IN ELECTRONIC BANKING AT VIET NAM PROSPERITY BANK HO CHI MINH CITY

GRADUATION THESIS

MAJOR: FINANCE – BANKING

CODE: 734021

HO CHI MINH CITY, JANUARY - 2021

THE STATE BANK OF VIET NAM MINISTRY OF EDUCATION & TRAINING

BANKING UNIVERSITY HO CHI MINH CITY

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LE THI YEN LINH

THE IMPACT OF SERVICE QUALITY ON CUSTOMER SATISFACTION IN ELECTRONIC BANKING AT VIET NAM PROSPERITY BANK HO CHI MINH CITY

GRADUATION THESIS

MAJOR: FINANCE – BANKING

CODE: 734021

SUPERVISOR NGUYEN THI MY HANH, PhD

HO CHI MINH CITY, JANUARY - 2021

THE STATE BANK OF VIET NAM MINISTRY OF EDUCATION & TRAINING

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ABSTRACT

Information technology advancements have been rapidly implemented in the banking industry to increase bank performance and productivity "Electronic banking", with the help of information technology, allows conducting retail transactions at a high and continuous speed Banks are racing to modernize their information systems, and launch a series of new services such as "phone banking"; "Internet banking", automatic money transfer and withdrawal make banking services popular and widely available Therefore, for a bank to get closer to customers, the bank itself must improve and apply e-banking to its obvious products and services To serve the demands of customers promptly, regardless of time and space, banks must constantly be updating consumer reviews and improve products and services in the best way Since VPBank recognized the value of e-banking for its services and clients, it introduced an electronic application (VPBank Online) to link banks and consumers Besides, the society and the demands of customers will be higher, the bank should pay attention to how satisfied customers are when using VPbank Online The author made the decision to investigate “The impact of service quality on customer satisfaction in electronic banking at Viet Nam Prosperity Bank Ho Chi Minh City” to find out factors affecting customer satisfaction In terms of the quality of e-banking services offered by VPBank in Ho Chi Minh City, there is a foundation for the bank to steadily increase operational quality and customer satisfaction

The structure of the thesis is divided into five chapters: Chapter 1: Introduction; Chapter 2: Literature review; Chapter 3: Research methodology; Chapter 4: Research results; Chapter 5: Conclusions and recommedations

The research utilizes qualitative and quantitative approaches to assess the variables impacting e-banking satisfaction, focusing on a database of surveys of 385 consumers using power banking services using the service level assessment model that provided by Sakhaei, et al (2014) According to Sakhaei, et al (2014) described 6 factors: reliability, efficiency, responsiveness, fulfillment, security/privacy, and website design as internet banking service quality dimensions were identified and proposed indicators to measure customer satisfaction with service quality customer surveys confirmed

Construction survey: developed from an analytical framework with a 5-level Likert scale to evaluate the impact of service quality on customer satisfaction in

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electronic banking at VPBank Ho Chi Minh City (1) Strongly disagree, (2) Disagree, (3)

No idea, (4) Agree, (5) Strongly agree Sample selection: Respondents are based on a convenient, non-probabilistic method because this is an easy sampling method, which means that clients who agree to be interviewed can be survey samples

Methods of processing and analyzing data including descriptive statistics are used for statistical purposes; Cronbach's Alpha's confidence coefficient method: to test the reliability of the scale; Exploratory factor analysis (EFA): to determine observed variables as well as test the scale based on the Extraction coefficient of the variables; Multi- variable regression analysis: Evaluate the suitability of the model and explain the effect of variables in practice ANOVA analysis: The average bottle test of two separate samples to compare the average outcomes of the variable age, gender, average monthly salary, and time using personal Internet Banking service of VPBank customers

According to the findings of the report, there are six factors shaping individual customer satisfaction with the current level of e-banking services at VPBank, and the degree of impact of those factors varies The scale in the building model illustrates 66.6 percent of customer satisfaction by using e-banking services There are six factors: EF (Efficiency), RE (Reliability), RES (Responsiveness), PR (Privacy/Security), WD (Website Design), and FU (Fulfillment) In which the following regression equation is used to measure the strength of the factors' influence:

CS = 0.427RE+0.354EF+0.208RES+0.202PR+0.089FU+0.080WD

Reliability has the strongest influence on satisfaction, followed by Efficiency, Responsiveness, Privacy/Security The element that has the least effect on satisfaction are Fulfillment and Website Design This result would serve as the framework for the author

to provide specific and realistic ways to boost customer satisfaction by using VPBank HCMC's e-banking services

From the above research results, the author also gives some suggestions for administrators in completing policies to improve the quality of e-banking services at VPBank the coming time

(1) Recommendations for the element of Reliability

The number of customers signing up for VPBank's e-banking services is growingeveryday New electronic banking products must still be checked, as there may be many

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errors during operation VPBank must closely scrutinize the commodity before releasing

it to consumers Information management teams and counter tellers can organize and answer requests efficiently and easily

(2) Recommendations for the element of Efficiency

VPBank should invest in its technological resources to help address the demands

of its customers VPBank must adopt a long-term plan for investment and new technology growth in order to achieve high efficiency and cost savings

(3) Recommendations for the element of Responsiveness

VPBank should train and enhance bank employees' knowledge of psychology so that services are continuously managed during the e-banking service delivery process

(4) Recommendations for the element of Privacy/Security

VPBank must audit and refresh the IT system on a regular basis in order to find security vulnerabilities Customers should be informed as soon as possible, and functional officials should still put their customers' needs first VP bank should strengthen its implementation of international security requirements such as ISO 27001 and PCI DSS It is important to direct and encourage consumers to increase awareness while using online services

(5) Recommendations for the element of Fulfillment

VPBank need enhance the usability of mobile banking services so that they are easy, safe, and fast, with reasonable transaction costs VPBank should take more care to upgrade network infrastructure, update and expand transmission lines The management department must create and perfect a legal document structure to solely administer internet operations and facilities

(6) Recommendations for the element of Website Design

Attracting consumers is still a high priority for banks in e-banking services since it

is the basis for increasing earnings A tidy, elegant, and simple-to-use can put consumers

at ease and make their choices simpler The bank's website interface should be built in a stunning manner, gaining interest so that customers do not feel bored when surfing this website Services should be organized scientifically and easily, and each usage should be simple and easy to understand

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The research aided the VPBank Ho Chi Minh City in determining factors influencing customer loyalty by using e-banking services However, the analysis has certain drawbacks, which are as follows:

To begin with, the analysis was only performed for individual customers who used e-banking services at VPBank Ho Chi Minh City, so generalizability is restricted

Secondly, since the analysis only reports on individual consumers using their own satisfaction appraisal requirements, the test findings cannot be applicable to all customers

at the same time Since business customers have different performance requirements than andividual customers, this analysis cannot be used by corporate clients

Thirdly, since the analysis was performed using a convenient approach (one of the non-probability sampling methods), the representativeness, uniformity, and generalization are poor

Fourthly, the research did not investigate several groups of variables such as gender, age, salary, and so on to decide if the above factors influence consumer loyalty while using the service

Keywords: Service quality, e-banking, Service quality model by Sakhaei, et al

(2014), customer satisfaction, VPBank in Ho Chi Minh City

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STATEMENT OF AUTHORSHIP

I hereby promise that the study is my original work, not replicated by others, with

the instructor's help is Ms Nguyen Thi My Hanh, and that it was produced by my own

study, reading, translation, synthesis, and implementation Theoretical material in the

study I drew from a variety of sources, which are mentioned in the references The

records, software program, and findings in the thesis are accurate and have not been

published elsewhere

HCMC, April 8th 2021 Author’s signature

Le Thi Yen Linh

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ACKNOWLEDGEMENT

First of all, I would like to express my thanks to the teachers and Banking University Ho Chi Minh City, for helping me to have basic knowledge of the banking field In particular, I would also like to thank Ms Nguyen Thi My Hanh for her continuous support of my study

Besides, I want to sincerely thanks for customers that using the e-banking of VPBank, for their enthusiastic cooperation in helping me complete the article in the best way

Finally, I am deeply grateful to my family and friends for supporting and encouraging me to complete this thesis

Author’s signature

Le Thi Yen Linh

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CONTENTS

ABSTRACT i

STATEMENT OF AUTHORSHIP v

ACKNOWLEDGEMENT vi

CONTENTS vii

LIST OF ABBREVIATIONS ix

LIST OF TABLES x

LIST OF FIGURES xi

CHAPTER 1: INTRODUCTION 1

1.1 The necessity of the subject 1

1.2 Research objectives 1

1.2.1 Overall objectives 1

1.2.2 Specific objectives 1

1.3 Research questions 2

1.4 Research subject and scope 2

1.5 Research methods 2

1.6 Research contributions 2

1.7 Thesis structure 3

CHAPTER 2: LITERATURE REVIEW 4

2.1 Conceptual framework 4

2.1.1 Electronic banking 4

2.1.2 Some types of e-banking services 4

2.1.3 Advantages and disadvantages of e-banking services 7

2.1.4 E-services quality 9

2.1.5 Customer satisfaction 10

2.1.6 Relationship between Quality of Service and Customer Satisfaction 11

2.2 Previous research models on factors affecting satisfaction 12

2.2.1 Model 5 service quality distance – SERVQUAL 12

2.2.2 The model E-S QUAL 15

2.2.3 Other models 16

2.3 The results of previous studies 17

CHAPTER 3: RESEARCH METHODOLOGY 20

3.1 Research model 20

3.2 Methods of data collection 21

3.2 Methods of processing and analyzing data 25

CHAPTER 4: RESEARCH RESULTS 27

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4.1 Overview of Vietnam Prosperity Joint Stock Commercial Bank 27

4.2.Overview of electronic banking services at Vietnam Prosperity Joint Stock Commercial Bank 28

4.2.1 VPBank Online 28

4.2.2 The results of e-banking at VPBank in 2019 30

4.3 Research results: The impact of service quality on customer satisfaction in electronic banking at Viet Nam Prosperity Bank Ho Chi Minh City 31

4.3.1 Sample description 31

4.3.2 Check the reliability of the scale with Cronbach Alpha 33

4.3.3 Explore factor analysis EFA 36

4.3.4 Pearson test of correlation coefficient 42

4.3.5 Multi-variable regression analysis method 43

4.3.6 Evaluation of customer satisfaction on e-banking services through the servey results 48

CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS 51

5.1 Conclusions 51

5.2 Recommedations 51

5.2.1 Recommendations for the element of Reliability 52

5.2.2 Recommendations for the element of Efficiency 52

5.2.3 Recommendations for the element of Responsiveness 53

5.2.4 Recommendations for the element of Privacy/Security 53

5.2.5 Recommendations for the element of Fulfillment 54

5.2.6 Recommendations for the element of Website Design 54

5.3 Limitations and future research directions 55

REFERENCES 57

APPENDIX: Survey questionnaires 60

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LIST OF ABBREVIATIONS

e-banking Electronic Banking

E-S QUAL Model of service quality provided by Zeithmal et al (2002) and

Parasuraman et al (2005)

SERVQUAL Model of service quality provided by Parasuraman et al (1988)

SPSS Statistical Package for the Social Sciences

VPBank Viet Nam Prosperity Joint Stock Commercial Bank

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LIST OF TABLES

Table 3 1: Summary of correlation between factors and customer satisfaction 21

Table 3 2: Encoding the e-banking service standard scales for the independent variables 22

Table 3 3: Encoding the e-banking service standard scales for the dependent variables 24 Table 4.1: Characteristics of respondents 31

Table 4.2: The purpose of using e-banking service of the customer 32

Table 4.3: Income of customers 32

Table 4.4: Time of using VPBank Online 33

Table 4.5: The number of Cronbach's Alpha variables 33

Table 4.6: The number of Cronbach's Alpha variables after re-test 35

Table 4.7: Cronbach’s Alpha of Customer Satisfaction 36

Table 4.8: KMO and Bartlett’s Test of independent factors (1st times) 37

Table 4.9: Initial Eigenvalues of independent factors (1st times) 37

Table 4.10: Rotated Component Matrix of independent factors (1st times) 38

Table 4.11: KMO and Bartlett’s Test of independent factors (2nd times) 39

Table 4.12: Initial Eigenvalues of independent factors (2nd times) 39

Table 4.13: Rotated Component Matrix of independent factors (2nd times) 40

Table 4.14: KMO and Bartlett’s Test of dependent factors 41

Table 4.15: Initial Eigenvalues of dependent factors 41

Table 4.16: Component Matrix of dependent factors 41

Table 4.17: Pearson test of correlation coefficient 42

Table 4.18: Evaluation of model suitability 43

Table 4.19: ANOVA analysis 44

Table 4.20: The statistical parameters of each variable in the regressive equation 44

Table 4.21: The results of descriptive statistics 47

Table 4.22: The results of descriptive statistics 48

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LIST OF FIGURES

Figure 2.1:GAP model of Service Quality 12

Figure 2.2: Model 5 factors of service quality 14

Figure 2.3: The E-S QUAL scale 15

Figure 2.4: The E-S QUAL scale 16

Figure 2.5: Relationship between online service quality and customer satisfaction: a study in internet banking 17

Figure 3.1:The conceptual framework 20

Figure 4.1: Stock price volatility since the IPO 27

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CHAPTER 1: INTRODUCTION 1.1 The necessity of the subject

Advances in information technology have been quickly applied in the banking industry to improve banks’ efficiency and competitiveness The network system eliminates space and time constraints Banks can open multiple branches in different countries while easily monitoring and managing branch operations Nowsday, banks are racing to modernize their information systems, and launch a series of new services such

as "phone banking"; "Internet banking", automatic money transfer and withdrawal, make banking services popular and widely available Therefore, for a bank to get closer

to customers, the bank itself must improve and apply e-banking to its obvious products and services To serve the demands of customers promptly, regardless of time space, banks must constantly be updating consumer reviews and improve products and services

in the best way

VPBank realized the importance of e-banking to its services and customers, so it launched an electronic application to connect between banks and consumers That is VPBank Online, a smart application combining e-banking to create fast transactions and high security as well as traditional transactions

However, the society and the demands of customers will be higher, the bank should pay attention to how satisfied customers are when using VPbank Online That is why the author decided to study the topic "The impact of service quality on customer satisfaction

in electronic banking at Viet Nam Prosperity Bank Ho Chi Minh City" to find out factors affecting customer satisfaction in order to improve the quality of e-banking services

1.2 Research objectives

1.2.1 Overall objectives

From opinion surveys on customer satisfaction with e-banking, specifically, VPBank Online to find out the factors that significantly affect customer satisfaction at VPBank HCMC Since then, proposing measures to advance and improve VPbank Online's functions and business plans to satisfy customers in the future

1.2.2 Specific objectives

Determining the factors that affect customer satisfaction

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Determine the impact level of factors on satisfaction and the relationship between satisfaction and e-banking service quality

1.3 Research questions

Which factors affect customer satisfaction through using VPBank Online?

What are the important factors contributing to customer satisfaction when experiencing VPBank Online function?

What extent do those factors influence customer satisfaction when using VPBank Online?

1.4 Research subject and scope

The subject of the research: Customer satisfaction with the service quality of banking at VPBank HCMC

e-Respondents: Customers who have been using VPBank Online in Ho Chi Minh City

Research scope: Survey data of 400 customers using VPBank Online

1.5 Research methods

Qualitative research method is used by sending survey questionnaires to each customer of VPBank HCMC From the answers of customers, the author have synthesized factors that affect customer satisfaction

Also, quantitative research method is applied From the answers of the survey, the data goes through the stages of factor analysis to explore EFA, check the reliability coefficient of Cronbach's Alpha, under the support of SPSS16 software, to test the hypotheses and find the most important determinant

1.6 Research contributions

Scientific significance: The research contributes to an analysis of factors affecting

customer satisfaction with VPBank Online Based on survey opinions of customers who have been using VPBank Online services, the results will be objective

Practical significance: When the research is successful, the topic will be a

reference source for VPBank to have policies to adjust functions or improve the quality

of VPBank Online to be more suitable to meet the demands of customers, ensure the lowest risk

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1.7 Thesis structure

Chapter 1: Introduction

Chapter 2: Literature review

Chapter 3: Research methodology

Chapter 4: Research results

Chapter 5: Conclusions and recommedations References

Appendix

to access banking services without requiring the assistance of a bank employee According to Thulani & Chitura (2009), is a service that enables a bank's customers to access their accounts and get the most up-to-date information about the bank, its goods, and services Using the bank's website, you can see all of your financial transactions at any time and from anywhere Customers who use electronic banking will handle their finances at their leisure, 24 hours a day, seven days a week, rather than being constrained

by time As a result, e-banking is a self-service choice that reduces time and space constraints while maintaining customer convenience and readiness (Hu & Liao, 2011; Aderonke, 2010)

In general, e-banking refers to a collection of banking transactions that customers can complete using electronic means rather than visiting a physical location This combines traditional banking services with information technology, electronics, and telecommunications The ability to automatically record transactions is one advantage e-banking has over conventional banking E-banking is a type of e-commerce that is used

in the banking industry

2.1.2 Some types of e-banking services

2.1.2.1 Phone banking

This is an automated banking form performed over the phone; the bank can supply customers with the switch board's phone number such that customers can contact transactions such as looking up details and making transactions Two ways of applying telephone banking are: Call center and ATS (Automatic telephone system)

Call centers provide customer support via telecommunications, as well as handle customer questions and inquiries Since this is a centralized customer management service based on the operation of the Customer Care and Consultation Center, customers

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at any branch of a bank can still call a center's landline number to receive general information and personal information The contact center will provide information and address consumer questions in a number of ways The drawback of the call center is that the bank must have a workforce on call 24 hours a day, seven days a week

The bank's automated response system is referred to as an ATS Customers can trade with the bank without having to go straight to the bank by calling the bank's switchboard number and clicking the key on the phone keypad according to the code, 24 hours a day, seven days a week The bank instructs the device to automatically react to the required details ATS provides public utilities such as receiving consultation on information on goods and services; information on interest rates, rates, and promotions; question account information; and listing account transfers

2.1.2.2 Mobile banking

This is another kind of electronic banking service in which consumers use cell phones to search details and conduct transactions with banks SMS banking, GSM SIM Toolkit, and WAP are all examples of mobile banking

SMS banking is a kind of e-banking service that is carried out via SMS on mobile phones After the customer finishes the distribution conversion on your account, the message will be immediately sent to the phone number that the customer has registered with the bank Customers may also send messages using the bank's syntax to look up facts such as interest rates, rates, account balances, and so on

GSM SIM Toolkit: This approach enables consumers to query details and conduct transactions on their accounts using a cell phone equipped with a SIM card that is compatible with banking applications In this situation, the bank and the mobile service provider must partner to provide customers with a specific SIM card that is integrated with banking services Account details request, value transfer operation, payment of power, water bills, telephone are all typical transactions conducted in this format Customers must log into the system to complete these transactions

WAP (Wireless Application Protocol): This is an automated banking program that allows consumers to use their cell phones to access the bank's website and conduct online transactions The bank's website must have two viewing modes: machine and cell phone Customers can now access their bank accounts via the bank's program, which is installed

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on the operating system of smartphones After log in to this application, customers can conduct a range of transactions such as querying account information, exchanging money, and paying bills

2.1.2.3 Home banking

Home-banking is an e-banking service delivery platform that enables users to conduct the entirety of the services Money transfer transactions (where clients open accounts) can be completed at home or at the business office without going to the bank Home-banking application and growth is a fortunate move for Vietnamese commercial banks in the South, which are under extreme pressure from the global banking integration process On the consumer side, home banking has brought in practical benefits such as speed, security, privacy, and convenience Home banking services are provided by one of two platforms: software-based or web-based, which are available via a server system, the Internet, and a client computer A bank and a customer can create, encrypt, share, and verify financial information

2.1.2.4 Internet banking

This is a common form of e-banking service; it is a product delivery platform Bring the bank to your house, office, or college, wherever and at any time With a device linked to the Internet, or you can send questions to the bank, make recommendations to the bank, and get answers after a certain amount of time Customers can log in to their personal accounts and use the bank's website to conduct a variety of transactions such as querying records, making money transfer transactions, paying bills, opening accounts, and delivering to customers

Customers must first register with the bank in order to receive login information However, since the protection is not as good as that of home banking or Kiosk-banking, Internet-banking service is still constrained and necessitates a more complex transaction confirmation process, such as security by using a static password and a dynamic password: To ensure consumer protection, a token code and authentication password are sent via phone message or mobile device

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2.1.2.5 Mail banking

This is a system of banking that interacts with customers by email Banks usually issue email updates to consumers about their goods and services, as well as their policies and deals, such as account statements, debit alerts, or introductory notices

2.1.2.6 ATM banking

This is a supplier bank's system of automated transaction machines Automatic Teller Machine) Customers may use this program to make financial transfers such as cash withdrawal, transfer within the same banking system, account inquiry, and

(ATM-so on The ATM machine is used via customer authentication via ATM card (debit card, credit card) From its inception, the ATM infrastructure has been actively built and extended by banks in order to provide the best possible service to customers

2.1.2.7 POS banking

This is the card acceptance system used in card-accepting institutions such as shops, shopping malls, and supermarkets, etc., are similar to ATM systems, POS systems (Point of Sale) that enable customers to use domestic ATM cards, international credit cards (Visa, Master, JCB, etc.) to pay for products and services upon issuance of the card POS systems have the advantage of being lightweight, taking up little room, and being simple to mount in a variety of locations such as stores, shopping centres, supermarkets, and restaurants

2.1.2.8 Kiosk banking

This is customer service that is both high-quality and comfortable On the path, there will be workstations with high-speed internet connectivity for consumers to make purchases or order services; all they need to do is access the service, enter their personal certificate number and password, and use it This is a trend that Vietnamese commercial banks are focusing on in order to reduce the burden on the ATM system; the development

of a comprehensive kiosk system would provide consumers with a non-cash transaction process

2.1.3 Advantages and disadvantages of e-banking services

2.1.3.1 Advantages

Firstly, the most apparent advantage of e-banking systems for consumers is their ease and comfort You can use the e-banking app to make direct deposits at any time and

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from any place Paying utility bills, recharging cards, shopping, exchanging money, are very easy and fast transactions This is especially important for customers who don't have time to go to the transaction points directly with the bank, as well as for individual customers whose transaction volume with the bank is low and the amount of money per transaction is small This is a benefit that conventional transfers cannot match in terms of pace and precision as opposed to e-banking

Secondly, e-banking using new technologies will both save time and greatly lower service prices for users to use because processing rates for e-banking services are currently perceived to be at a low level as opposed to conventional transactions Furthermore, if more consumers enrol and use the app, it would lead to a rise in sales for banking operations

Thirdly, e-banking services are a fantastic way for banks to boost both quality and productivity results, thus increasing the bank's competitiveness All at the same, it assists the financial sector in best executing the globalization policy without the need to open new branches at home or abroad E-banking is a medium for effectively and creatively advertising the bank's name

Fourthly, purchase requests and consumer queries are easily executed by banking systems, providing optimal conditions for money currency to be exchanged as quickly as possible As a result, the circulation of goods and money is accelerated

e-Fifthly, e-banking services with a modern and multi-functional business model would provide consumers with the highest quality care services, allowing customers to be satisfied and trusting

Sixthly, banks will cooperate with insurance providers, brokerage firms, and finance firms to provide integrated utility solutions to satisfy a customer's needs for banking-related services, insurance, investment, securities, and so on

2.1.3.2 Disadvantage

One of the disadvantages of electronic banking is the system's safety and security Customers can lose their password to access their accounts because it has been compromised using advanced technologies by hackers As a consequence, there is a risk that the money in the customer's account will be spent without customers’s being aware

of the loss or the bank's responsibility

2.1.4 E-services quality

Service quality is a concept that has been studied quite a lot around the world, must include the studies of Hurbert (1994), Zeithaml et al (1996) Although there are numerous definitions of service quality, Cronin and Taylor (1992) explained that in general, service quality definitions are related to determining customer experience and perceptions response of the service to their expectations

Researchers have discovered that excellent banks in terms of service quality have distinct marketing advantages, as well as a higher level of service quality correlated with higher earnings, improved cross-selling potential, and greater consumer satisfaction row higher held up (Bennett, 2003) E-service quality has been defined as consumers' overall assessment and judgment of the excellence and e service quality offerings in the virtual marketplace (Santos, 2003) According to Lehtnen and Lehtinen (1982), service efficiency must be measured from two perspectives: the service delivery process and the service outcome According to Parasuraman, Zeithaml, and Berry (1985), “Service quality is the customer's experience of a service in reaction to their previous expectation, expectation of service quality is the customer's expectation that the provider would perform The discrepancy between service expectations and customer experience when using the service is referred to as service quality”

Because each customer has different influences and needs, their expectation of service quality differs By identifying differences between consumer perceptions and expectations, management or strategists will be able to resolve weaknesses or make

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consistent improvements in the service they offer In this review of e-banking services, each client should be viewed as a customer, and they must be comfortable with the service quality

It may deduce from the general principles of service quality that the quality of banking services (according to Zeithaml et al., 2002) is the degree of the website's ability

e-to promote the purchase, request, and distribution of the service beneficial and powerful The quality of e-banking service is interpreted as the product of a comparison of customers' expectations of e-banking service and their experience of e-banking service while using it

The ability of websites to establish favorable and efficient environments for customers to conduct services is the issue of using this concept to determine the quality

of e-banking services at VPBank in Ho Chi Minh City The survey subject only considers service quality e-banikng at VPBank in terms of consumer experience, not the expectation aspect Since assessing consumer preferences for services on the Internet, according to Cox and Dale (2001), is difficult due to a lack of customer awareness of a typical website, most web users are trapped concepts in their attempts to provide an expected standard for the website they communicate with (Li et al., 2003; Yang et al., 2004)

Consumer satisfaction, according to Hansemark and Albinsson (2004), is an overall customer attitude toward a service provider, or an emotional reaction to the difference between what a customer predicts before and what they get, for the fulfillment

of any need, purpose, or desire According to Brown, Churchill, and Peter (1993), consumer satisfaction is described as a condition in which what consumers require,

According to any of the concepts above, consumer satisfaction is the comparison

of real benefits achieved and desires based on their perception of a customer product or service, which constitutes individual decisions or judgments It is a psychological sensation that occurs after the customer's desires are satisfied Customer loyalty is created

on the basis of impressions acquired by buying and using a certain product or service over a specific period of time, from which consumers can review and make suggestions is the contrast of your perception and your anticipation

2.1.6 Relationship between Quality of Service and Customer Satisfaction

Many experiments have shown that quality of service and satisfaction are two distinct but inextricably linked terms Customer satisfaction, according to Zeithaml and Bitner, is a general term that communicates their satisfaction while purchasing a service, even when service quality is associated with the different elements of the service Oliver believes that the standard of customer satisfaction is affected by service quality That is, the level of service is determined by a number of variables that are part of the satisfaction determining factor Cronin and Taylor (1992), Spreng and Mackoy (1996), and Ruyter, Bloemer, and Peeters (1997) discovered that service quality is a requirement for customer satisfaction, and is an important element in achieving pleasure

According to Parasuraman (1988), the aspect influencing customer satisfaction is service quality If the service provider provides consumers with high-quality goods that meet their needs, the bank will initially please the consumer Service quality and satisfaction are inextricably linked, with service quality being the primary determinant of customer satisfaction In most customer satisfaction research, the causal relationship between these two variables is critical

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In conclusion, service quality is regarded as an important approach in business management for ensuring customer satisfaction while also the the competitiveness and efficiency of the industry (Arun Kumar G., Manjunath S J., and Naveen Kumar H., 2012) The higher the quality of the service, the higher the level of customer satisfaction, which is also an important factor in the long-term In contrast, if the service is weak, the customer will never return for a second time; a poor first experience will influence the customer's decision to use the service later on

2.2 Previous research models on factors affecting satisfaction

2.2.1 Model 5 service quality distance – SERVQUAL

Figure 2.1:GAP model of Service Quality

(Source: Parasuraman et al ,1985) GAP 1: This occurs where there is a mismatch between the consumer's perceptions of service quality and the service manager's view of customer expectations The fundamental difference is that the service provider does not completely comprehend what constitutes the quality of its service and how it is provided to its clients in order to meet their needs

GAP 2: Appearance occurs when a service provider faces challenges, both factual and emotional, in translating their interpretations of consumer preferences into concrete quality requirements and delivering on their expectations Criteria is the customer's marketing message The skills of the service personnel, as well as the overwhelming

Expected Service

Perceived

Service delivery (including pre and post contracts

Transaction of perceptions into service quality specifications

Management perceptions of consumer expectations

External communications to

customers

Word of mouth Personal needs Past experience

GAP4

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demand for services, are the primary causes of this crisis There are periods when the need for supplies is so strong that the corporation is unable to satisfy it

GAP 3: This occurs when the service agent fails to provide services to customers

in accordance with the specified requirements Employees in the service industry have regular interaction with customers, and plays an important part in the quality production process Employees, on the other hand, are not always able to complete their delegated duties

GAP 4: This is the difference between the delivery service and the details received

by the customer This knowledge can raise expectations, but it can also lower service standards when consumers do not get what they promise

GAP 5: The difference between the perceived and desired quality of the service as the consumer consumes it According to the Parasuraman et al (1985) model, service efficiency is the fifth gap, and it is based on four other gaps As a result, in order to close the fifth gap and improve service quality, the service manager must aim to reduce these gaps

In 1985, Parasuraman et al published a list of ten variables that influence service quality:

(1) Access: This refers to providing all of the convenient conditions for consumers to access facilities, such as shortening customer wait times, venue, operating hours, and

so on

(2) Quality of information (communication): is the communication and contact to consumers in a particular language in the simplest way to clarify problems relating to them such as describing the service, the quality, how to execute it, and answering questions

(3) Competence: the ability to conduct the operation The willingness to serve is shown as the employee approaches the client, directly performs the service, and captures pertinent information used to serve the customer

(4) Courtesy: refers to an employee's demeanor when dealing individually with clients Is it, for example, friendly, respectful, and inviting to customers

(5) Credibility: The opportunity to instill confidence in clients through the company's name and the service attitude of its employees

While the above 10 component service quality model covers nearly all dimensions

of the service, there is one disadvantage: the difficulty of calculating service quality As a result, Parasuraman et al (1988, 1991) merged the associated variables and reduced them

to 5 specific elements, resulting in the SERVQUAL scale of 22 observed variables to quantify consumer expectations and service experiences

Figure 2.2: Model 5 factors of service quality

(Source: Parasuraman et al ,1988) Reliability: Reliability necessitates continuity in service delivery and respect for obligations, as well as upholding assurances to consumers conveyed by the ability to deliver the service in a reliable, precise, and timely manner from the start

Responsiveness: When delivering prompt service to clients, responsiveness is shown by the employee's desire and ability to participate

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Assurance: This is the aspect that instills faith and belief in consumers, as shown

by their expertise and customer support

Empathy: Empathy entails showing concern and concern for each client and consumer The human aspect is critical to this achievement, and the more service companies feel for their clients, the more empathy they can have

Tangibles: are the things that consumers can see through their eyes while using the facility; all factors that influence this aspect are expressed in the posture and dress of the employee; appliances, and service facilities

2.2.2 The model E-S QUAL

The E-S QUAL, a multifaceted scale with essential service quality aspects and four dimensions, has been empirically studied by Zeithaml et al (2002) and Parasuraman

et al (2005)

Zeithaml et al (2002) defined comparable dimensions in the following way

(1) Consumers' ability to get to a website, locate their preferred product and related facts, and check out with minimum effort is referred to as efficiency

(2) Fulfillment includes keeping service commitments accurate, getting goods in stock, and shipping products on schedule

(3) The technological functionality of the site, especially the degree to which it is accessible and running properly, is linked to reliability

(4) The privacy component requires confirmation that shopping experience data are not exchanged and the credit card information

This view is shown in the following figure 2.3:

Figure 2.3: The E-S QUAL scale

(Source: Zeithaml et al ,2002)

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Parasuraman et al (2005) has been used with the aim of measuring service quality, perceived value and loyalty intentions The scale obtained the four dimensions mentioned below

(1) Efficiency: The simplicity and speed at which the web can be viewed and used (2) Fulfillment: The degree to which the site's guarantees about order arrival and item availability are met

(3) System availability: The site's proper operational operation

(4) Privacy: The extent to which the site is protected and preserves consumer information

This view is shown in the following figure 2.4:

Figure 2.4: The E-S QUAL scale

(Source: Parasuraman et al ,2005)

2.2.3 Other models

Other scientists have also extended their studies on this subject (Yang & Yun, 2002; Trocchia & Janda, 2003; Saha and hao, 2005) Trocchia & Janda (2003) have defined five factors, including efficiency, reliability, privacy, suggestion and knowledge, from a general perspective, to internet service quality Previously, Yang and Jun (2002) indicated that there are six factors that influence translation quality of service on the internet, namely: efficiency, reliability, ease of use, personalization, privacy, and popularity According to Saha and Zhao (2005) have identified 9 elements of service quality in e-banking such as efficiency, reliability, responsiveness, perfection, privacy, communication, personalization, logistic /technical technology, and equipment updates The first five elements were tested as a core element in e-banking Communication and personalization have been identified as two other important service quality aspects in e-banking This view is shown in the following figure 2.5:

Perceived value

2.3 Overview of previous studies

Hammoud, et al (2018) wirh research “The impact of e-banking service quality on customer satisfaction: Evidence from the Lebanese banking sector” The research took a quantitative approach, with a sample sent to bank clients in Lebanon and data analyzed using SEM with AMOS The findings indicate that the results validated the four theories

of this analysis, and the major contribution of this study was that efficiency, as a service quality indicator, was the key predictor of consumer satisfaction in this specific sector With E-Banking systems still relatively new in Lebanon and, as a result, underdeveloped and underutilized, the findings of this study would help to improve awareness of what

Saha and Zhao (2005) with research “Relationship between online service quality and customer satisfaction: a study in internet banking”, the most concerning factor for internet banking customers is privacy, since an unsafe website or transaction will cause huge problems for customers Meanwhile, customer satisfaction and loyalty are heavily influenced by this element The next significant considerations are reliability and responsiveness, all of which have an effect on consumer trust Fulfillment and efficiency are less essential All consumers are concerned with their internet connectivity, website loading time, login or logout times Furthermore, the analysis may determine the bank's and other financial institutions' perceptions and preferences on what they could perceive

to satisfy their customers

Sakhaei, et al (2014) with research “The impact of service quality on customer satisfaction in Internet banking” The research described 6 factors: reliability, efficiency, responsiveness, fulfillment, security/privacy, and website design as internet banking service quality dimensions were identified and proposed indicators to measure customer satisfaction with service quality customer surveys confirmed As a result, it is accepted that these indicators are presented to evaluate the service quality and customer

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satisfaction as a result of Internet banking operations in Iran The results show that the reliability factor is the most effective for customer satisfaction, while website design is the least effective Since the overall customer satisfaction does not vary between the websites of different banks, the effect of different banks in Iran in terms of Web service efficiency is not statistically important As a suggestion for a potential analysis, this model was applied in banks and the conclusions were recognized, and the investigative method was designed in this research and suggested in other electronic organizations

Between the above researchs, the author performed the dimensions given by Sakhaei et al (2014) because of its suitability to the current situation, customers' demand for e-banking leads to satisfaction almost matching with the author's research purposes

SUMMARY OF CHAPTER 2

Chapter 2 discussed the basics of e-banking systems, as well as the ideas and fundamental framework used to determine customer satisfaction with e-banking service quality Following that, the research subject of previous studies relating to the evaluation

of customer satisfaction with e-banking service quality was published in reputable domestic and international journals The thesis developed a proposed research model based on theoretical foundations and similar previous studies

Figure 3.1:The conceptual framework

(Source: Sakhaei, et al ,2014)

Independent variables: Including 6 variables (factors) of e-banking service quality:

(1) Efficiency, (2) Reliability, (3) Responsiveness, (4) Website Design, (5) Privacy/Security, (6) Fulfillment

Dependent variable: Customer Satisfaction

3.2 Research hypothesis

The thesis develops hypotheses about the relationship between the independent variables and the dependent variable (Customer satisfaction level) using the research model suggested by the author, as follows:

Efficiency: The ability of the customer to get the website, find their desired product

and information associated with it (Zeithaml, et al., 2002) Since then, the author has established hypothesis H1: efficiency has a positive (+) impact on satisfaction

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Reliability: The technical functioning of the site, information that is provided is

accurate (Zeithaml, et al., 2002) Customers expect trustable services on which they can rely Since then, the author has established hypothesis H2: reliability has a positive (+) impact on satisfaction

Responsiveness: The readiness and willingness of employees to help customers by providing prompt timely services, for example, mailing a transaction slip immediately or setting up appointments quickly (Parasuraman, et al., 1994) Since then, the author has established hypothesis H3: responsiveness has a positive (+) impact on satisfaction

Website Design: The visual appeal of web links organized with customized search

functions, quick access, and easy error correction (Liu and Arnett, 2000) Since then, the author has established hypothesis H4: website design has a positive (+) impact on satisfaction

Privacy/ Security: Personal information is not shared, the credit card information is

secured (Zeithaml, et al., 2002) This is a factor that is particularly interested in by the majority of customers using e-banking Since then, the author has established hypothesis H5: privacy/security has a positive (+) impact on satisfaction

Fulfillment: Accuracy of service promise, fulfillment, and provide service within

promised time (Zeithaml, et al., 2002) Since then, the author has established hypothesis H6: fulfillment has a positive (+) impact on satisfaction

Customer Satisfaction: Demonstrates the mindset of consumers by using the bank's

electronic services

Table 3.1 summarizes the association between variables and consumer loyalty, where the (+) sign represents a proportional relationship

Table 3 1: Summary of correlation between factors and customer satisfaction

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3.3 Methods of data collection

This is a qualitative applied research sample The questionnaire was used to gather the results It should be mentioned that the questionnaire from research of Saha and Zhao (2005) was also included in the creation of the questionnaire The questionnaire was divided into two parts Part one focuses on the sample's demographic characteristics Part two contained 39 positive-worded statements on measuring customer satisfaction with internet banking Details of the question are mentioned in the Appendix

The data were collected from costumers that use e-banking services of VPBank at Ho Chi Minh City, during the month of January to March 2021 The survey was carried out using a Likert Based questionnaire with a scale of 1 (strongly disagree) to 5 (strongly agree) In this research, the population has a large size and widely distributed Then, the author selects sampling method according to the Cochran sampling formula (1977) size was taken The customers were selected by random sampling method The reliability of constructs was tested by using Cronbach’s alpha test, using SPSS16

The variables used in the estimation model are detailed in the table 3.2 and table 3.3

as follows:

Table 3 2: Encoding the e-banking service standard scales for the independent variables Symbol Independent factors

EF: Efficiency

EF1 It is easy to find all the important information from the VPBank Online

EF2 VPBank Online is easy to navigate and is simple to use

EF3 It is easy to find policy and notice statements on the VPBank Online

EF4 VPBank Online does not get you lost

EF5 The speed of log in to your account is fast

EF6 The speed of log out of your account is fast

RE: Reliability

RE1 VPBank Online provides a confirmation of the service ordered

RE2 VPBank Online performs service right the first time

RE3 The customer support feature understands and be ready to answer your

questions

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RE4 VPBank compensates for the problem they create

RE5 VPBank Online provides quick confirmation

RES: Responsiveness

RES1 VPBank provides appropriate information to customers when a problem

occurs

RES2 VPBank is willing to help customers and provide prompt service

RES3 You are able to talk to a live person using a telephone number

RES4 VPBank Online has online customer service representatives

RES5 VPBank Online provides all the features you need

RES6 VPBank takes care of the problem promptly

PR: Privacy/Security

PR1 VPBank Online always asks you security questions

PR2 VPBank shows care in how it collects your personal information

PR3 VPBank Online does not use cookies to collect information

PR4 VPBank is secure for your credit card information

PR5 You can rely on the information that you give not to be misused

PR6 You can rely on the information remaining in the register

WD: Website Design

WD1 VPBank online has a good decentralized structure

WD2 VPbank Online has recognizable headlines

WD3 VPbank online has a sitemap and contact page and are they easy to use WD4 There is a link to the home page on all pages

WD5 VPBank Online is always up-to-date with diverse themes

WD6 You are satisfied with the current website design

FU: Fulfillment

FU1 You can rely on the web pages functioning properly

FU2 VPBank Online is up and running all the time

FU3 VPBank Online doesn’t freeze after you have put in all your information FU4 Links are problem-free, accurate and the pages download quickly

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FU5 Information that is provided is accurate

FU6 Information content and texts are easy to understand

(Source: Sakhaei, et al ,2014) Table 3 3: Encoding the e-banking service standard scales for the dependent variables Symbol Dependent factors

CS: Customer Satisfaction

CS1 You are very satisfied with the features VPBank Online?

CS2 You feel that choosing to use VPBank Online is the right decision

CS3 You will continue to use VPBank Online?

CS4 You will introduce your friends to use VPBank Online?

(Source: Sakhaei, et al , 2014)Primary data is collected through the following steps:

Construction survey: developed from an analytical framework with a 5-level Likert scale to evaluate the impact of service quality on customer satisfaction in electronic banking at VPBank Ho Chi Minh City (1) Strongly disagree, (2) Disagree, (3)

No idea, (4) Agree, (5) Strongly agree Value of distance = (Maximum-Minimum) / n = (5-1) / 5 = 0.8

After test interviewing 10 customers, the questionnaire was edited and put to use Sample selection: Respondents are based on a convenient, non-probabilistic method because this is an easy sampling method, which means that clients who agree to

be interviewed can be survey samples

The number of samples: determined according to Cochran sampling formula (1977):