MARKETING MIX ĐỂ NÂNG CAO SỰ QUAN TÂM SỬ DỤNG DỊCH VỤ NGÂN HÀNG ĐIỆN TỬ CỦA AGRIBANK

List of FiguresAbstract The objective of the study is to use marketing mix to strengthen the performance of banking services at Agribank Hai Duong 2.. Research objective and Research que

MARKETING MIX TO IMPROVE THE INTENTION TO USE

E-BANKING SERVICES OF AGGRIBANK

Table of Contents

List of Tables

List of Figures

Abstract

The objective of the study is to use marketing mix to strengthen the performance of banking services at Agribank Hai Duong 2 The author adopts qualitative research methodwith the data to be collected among 397 e-banking customers of the branch The marketingmix is measured by 17 items with the Likert scale to be adopted Obtained result shows thatthe branch records high customer satisfaction and customer loyalty with the e-bankingservices It is because of the branch has adopted good 4P’s marketing although there are stillsources of improvement related to the price marketing strategy as well as the promotionmarketing This study brings the evidence of current performance of the marketing mix atAgribank in general and at Agribank Hai Duong 2 in specific It promotes the branchmanagers to pay attention to marketing programmes to further boost the intention to use thee-banking services from new customers as well as to better retain existing customers

e-Keywords: product marketing, price marketing, place marketing, promotion marketing,

customer satisfaction, customer loyalty

Chapter 1 Introduction1.1 Background of the study

Vietnamese banking industry is highly developed with the credit to the economy was aboutVND 8,694 trillion in the first 9 months of 2020 and it was 6.08% higher than the end of

2019 (State Bank of Vietnam, 2021) It is said that banking industry has been contributingdirectly to the socio-economic development of the country, showing through the fact that itpromotes the circulation of the capital and provides the funds to different economic activities(State Bank of Vietnam, 2018) Currently, Vietnam’s system of credit institutions is dividedinto banks, non-banks, micro-finance institutions, and foreign bank branches andrepresentative offices The most active category is banks with 4 Stated-owned commercialbanks, 31 joint-stock commercial banks, and 9 wholly foreign-owned banks The State-owned banks refer to the banks with 100% or part of their shares to be under the management

of the State Bank of Vietnam This group has 4 banks and Agribank is the largest one with thecharter capital of VND 30,496 billion This bank plays prominent role in the country’s socio-economic development since it provides the credit accessibility for agricultural and ruraldevelopment Agribank is also nominated as social security supporter of the economythroughout many long-term funding projects which help to reduce the poverty and to furtherrenovate the infrastructure and the life quality of people in rural and mountain area.Currently, Agribank has more than 200 convenient banking products and the bank haspresented in all cities and provinces of Vietnam through more than 2,300 branches andtransaction offices Recently, Agribank also pays attention to the application of newtechnologies in banking area given to the industrial revolution 4.0 The bank has beenparticipating into the National Strategy for Financial Inclusion of Vietnam and following thedirection from the government of further developing digital economy and promoting non-cash transactions In fact, Agribank has already been providing several banking services that

do not require the cash payment from the customers Among these services, the electronicbanking (e-banking) is the core services It includes the Internet banking and mobile banking

in which the Internet banking allows the customers to perform banking transactions over theInternet and it can be done through their Internet browsers while the electronic mobilebanking is a mobile application which was developed by Agribank and it is installed in thecustomers’ smartphone so that the customers can perform banking transaction on the go

Currently, the number of e-banking customers of Agribank has exceeded 3 million and it isincreasing in coming years

1.2 Rationale

Agribank has recognized the importance of adopting and implementing new technologies,showing through the fact that the bank successfully deployed the Business Strategy and theProduct Strategy during 2016-2020 These two strategies helped to further improve e-bankingservices However, one of the concerns related to e-banking services of Agribank is that thenumber of customers has been decreasing recently From 2018 to 2020, the number of newlyregistered e-banking customers was decreased from 341,000 to 257,000, leading to the totalnumber of e-banking customers in the end of 2020 was only 3.1 million which was lowerthan in 2018 and 2019 The number of e-banking customers in these two years are 3.37million and 3.26 million respectively This situation is faced also in Agribank Hai Duong 2

Table 1.1: Overview of Agribank Hai Duong 2

c Term between 12 months and 24 months 7,577 9,427

Source: Internal Reports of Agribank Hai Duong 2

Table 1 shows that Agribank Hai Duong 2 achieved good performance during 2020 in term ofcapital mobilization and outstanding loans During 2020, the branch successfully mobilizedVND 14,034 billion that was 17% higher than in 2019 Similarly, the outstanding loans in

2020 was VND 6,277 billion and it was 15% higher than in 2019 Total fees collected in allbanking services in 2020 was stood at VND 23 billion and it was VND 3 billion higher than

in 2019 Along with that, the branch successfully controlled the non-performing loans,showing through the fact that the NPL ratio in 2020 was less than 1% (0.86%) although itwas still higher than 2019 that had been 0.79% The branch also had more than 68,000 cardssuch as ATM cards, debit cards, credit cards, etc E-banking is among the weakness points inthe branch’s business because of the number of e-banking accounts was significantlydropped, from 65,797 accounts in 2019 to 60,918 accounts in 2020 or it was down by 7%.Due to the number of e-banking account was decreased, the fees collected from this bankingservice was also decreased from VND 5 billion in 2019 to VND 4 billion in 2020 It is saidthat e-banking service is important business in Agribank Hai Duong 2 since it contributed to25% of total fees collected amount in 2019 The decrease in the number of e-bankingaccounts in 2020 mad the contribution ratio was down to 17% that signifies concern of theperformance of e-banking services in this branch

The decrease of e-banking customers raises a concern related to the service performance and

a worry related to the lack of motivational scheme to boost newly registers De Leon (2019)indicated that the intention to use e-banking can be increased through aggressive marketingpromotions Alkhaldi & Kharma (2019) also recommended that the banks should deployeffective marketing campaign in order to attract new e-banking users and to maintain existingcustomers Also, Ali (2016) addressed that the banks should conduct suitable marketingprogramme in order to communicate with the customers about the availability of e-bankingservices and it helps to improve the e-banking service portfolio

1.3 Research objective and Research questions

Given to the rationale above, a main research objective of using marketing mix to strengthenthe performance of e-banking services at Agribank Hai Duong 2 is selected This researchobjective is supported by following research questions:

− How the customers perceive about the e-banking services offered by Agribank HaiDuong 2?

− How the customers perceive about the price or the fee of the e-banking servicesoffered by Agribank Hai Duong 2?

− How the customers perceive about the promotion offers by Agribank Hai Duong 2 inthe e-banking services?

− How the customers perceived about the place strategy selected by Agribank HaiDuong 2 when they distribute the e-banking services to the customers?

1.4 Scope of work

The object of the study is e-banking service offered by Agribank Hai Duong 2 The location

of the study is in Hai Duong and the time of conducting this study is started from March

2021

1.5 Significance of the study

By conducing this study, it is expected that the departments of Agribank Hai Duong 2whichare responsible of e-banking services have an evidence of the current performance of thebank’s marketing mix strategy Also, this study will point out the key weaknesses of currentmarketing mix programmes and therefore the managers of Agribank Hai Duong 2 canprovide better decisions to address the existing problems Other researchers are promoted todevelop a research about marketing mix in e-banking services They can use this study’sresult as reference for their own research

1.6 Structure of the study

The study has five chapter with the summary of each chapter’s content is as below:

Chapter 1 Introduction

This chapter provides the background of Vietnamese banking industry and Agribank Therationale of developing this study is provided along with research objective and researchquestions

Chapter 2 Literature Review

This chapter examines the concept of marketing mix In addition, related empirical evidencesare collected and explored to understand the role of each marketing mix factor to the use of e-banking services

Chapter 3 Research Methodology

This chapter is established in order to select the suitable research method given to selectedresearch objective This chapter also provides the data collection planning and how thequestionnaire is designed to help collecting required information

Chapter 4: Research Results

This chapter presents the results retrieved from the collected data The current performance ofeach marketing mix factor of Agribank Hai Duong 2 is put into the evaluation in the casestudy of Agribank

Chapter 5 Conclusion and Recommendations

This chapter summarizes the findings from previous chapters The recommendations aredeveloped to address the current weaknesses and to attain the current strengths so thatAgribank can gain higher e-banking service performance

Chapter 2 Literature Review2.1 Overview of marketing mix

Marketing mix was originated from McCarthy (1964) and it is a framework with fourelements, namely product, price, place, and promotion Marketing mix is important, and itcontributes into the success of transaction marketing and operational marketing plan(Constantinides, 2006) and it acts like a reference to direct the way the markets fulfill theirresponsibilities to the customers (Konhäusner et al., 2021) According to Bahador (2019),effective marketing mix programmes helped the companies to achieve greater businessperformance in both short-term and long-term perspective An empirical evidence provided

by Badi (2018) confirmed that the marketing mix programme also influences the competitiveposition of the firms through the creation of competitive advantage against other rivalries.Nurmartiani et al (2020) explicated that the marketing mix programmes also strengthen thefirm-customer relationship and it is achieved through effective communication andrelationship marketing activities Jarad (2020) indicated that marketing mix can act like a tool

to help the marketers to better utilize their competitive advantages in line with theunderstanding of other competitors’ advantages and to better use of available resources forsupporting each marketing mix component

Over the time, there were a lot of empirical evidences which were developed by otherresearchers to confirm the roles of marketing mix For example, Nguyen (2017) studied theeffect of the 4Ps marketing mix on customer satisfaction and loyalty in Vietnam’s air cargoindustry Nguyen identified that all four marketing mix factors had positive and significanteffects on customer satisfaction, and it resulted better customer loyalty Similarly, Waithaka &Walmalwa (2020) also found an empirical evidence that supported the significant effects ofmarketing mix factors on customer satisfaction with mini supermarkets Baig et al (2020)collected the data among 501 online customers and identified that marketing mix factorssignificantly improved the customer value and it led to higher customer loyalty Harsono(2016) conducted a research to identify the impact of 4Ps marketing mix factors on customerloyalty with Toyota Avanza Obtained empirical evidence showed that customer loyaltyreceived a significant impact from product factor Nurmartiani et al (2020) surveyed 280customers in the West Java region and found that marketing mix factors significantlystrengthened the customer relationship and it contributed to the higher customer trust with theproducts and services Also, the previous researchers proved the significant effect of

marketing mix factors on customer purchase intention For example, Santoso & Sungkari(2013) analyzed how 4Ps marketing mix affecting purchase intention of software users inIndonesia They found that the software purchase intention was significantly affected by priceand place factor Mahmoud (2018) surveyed 341 customers to evaluate the effect of greenmarketing mix on their purchase intention Mahmoud found the positive and significant effect

of green product, green price, green promotion, and green place on customer purchaseintention

2.2 Product marketing mix

Product marketing mix is the marketing strategy selected by the firms in order to strengthenthe competitive advantage of their products and services through their physical and utilityattributes According to Karim & Habiba (2020), product is either physical form such asclothes, equipment or non-physical form such as services offered by the companies to theircustomers Product has many features such as product brand, product design, productfeatures, product image, and product packaging Product brand refers to the integration of thecompanies’ core values into their products consistently and continually (Hakala et al., 2015).Product design is not only the activities to make a product look aesthetically appealing butalso a multi-disciplinary physical production process (Patil et al., 2017) Product featureaddresses the importance of the functions of a product and how it can help a company todistinguish itself from others (Al-Kwifi & McNaughton, 2013) Product image emphasizesthe individual and the market perception of a product whether it is positive or favorableproduct and vice versa (Calvo-Porral & Lévy-Mangin, 2020) Product packaging comprisesdifferent elements such as packaging material, size, colour, font style, and printed informationand they together contributes to customer purchase intention (Asri et al., 2020) Thecompanies must guarantee that their products and services are high-quality and meets theneeds and demands of the customers (Dang, 2014) In other words, product is the offer of thecompanies to the market with the objective of collecting customers’ attention, purchase, anduse since it can address the customers’ needs or wants (Kotler & Armstrong, 2020) Inaddition, the companies can retain or even further strengthen their competitive advantagethrough continuous product improvement process (Waithaka & Wamalwa., 2020) According

to Naibaho et al (2020), product is important element in marketing mix framework since itconnects with and determine other marketing mix components

2.3 Price marketing mix

Price marketing mix refers to the value of a product or service and it is charged to the buyers(Thabit & Raewf, 2018) It is equal to the sum of the production cost, distribution cost, andmarketing cost that the companies spend for their products (Kotler, 2016) Price is alsoviewed differently between the markets and the customers, in which, the marketers considerprice as the willingness to pay for their customers for the values brought by the productswhile the customers view price as a measure of their sacrifice for a product utility (Karim &Habiba, 2020).When the firms set price for a product or service, they must pay attention tohow the customers’ willingness to pay and the product and service price is often stated inshort-term perspectives since it is replaced depending on the market and the competitivesituation (Badi, 2015) In addition, the marketers should pay attention to the price elasticity ofdemand which is implied by the customers’ income level and their consumption habits, theappearance of substitute products in the market, and how their products fit with thecustomers’ needs and demands (Vukadinović et al., 2017) The price of a product is alsodetermined through cost-oriented approach or market-oriented approach, in which cost-oriented approach sets the price by taking a target profit margin on a product cost (De Toni etal., 2017) while market-oriented approach requires the analysis of pricing strategy beingconducted by other competitors (Petricek et al., 2020) In addition, price is dynamic due tothe fluctuations from the customers’ demands, the suppliers’ abilities, the competition in themarket (Kramer et al 2018) According to Ingenbleek et al (2013), if the companies setprice too high, their customers may not be willing to purchase their product; however, if theprice is set too low, it may affect the companies not only lower profitability in short-term butalso lower the company image in long-term after the customers develop their perceptionabout low product price In addition, the marketers should pay attention to the price fairnesswhich is defined as the customers’ affective and cognitive assessment of a product’s price isacceptable, justifiable, and reasonable (Santos et al., 2020) In addition, price fairness isrecognized through the fact that different consumers at a given time should purchase aproduct at the same price although the price may be varied depending on the time when thecustomers make their purchases (Priester et al., 2020)

2.4 Promotion marketing mix

Promotion marketing mix is perceived as an exercise in using information to influence and topersuade the customers to purchase the firms’ products and services (Karunanithy & Sivesan,2013) Promotion is equivalent to communication effort to bring the firms’ products and

services to the customers and it contributes to the achievement of sales target and to increasethe brand identity (Marlina et al., 2018) In addition, promotion consists of other activitiessuch as advertising, direct marketing, public relationship, personal selling, and salemotivational offers (Karim & Habiba, 2020) Advertising is an activity conducted by thecompanies to communicate a designated message to the customers through media vehiclessuch as television, radio, online platform, etc (Sama, 2019) The use of media vehicles mustpursue the current circumstances, for example, the COVID-19 era enforces the companies toincrease the use of online, television, and radio advertising rather than relying on outdooradvertising activities (Hoekstra & Leeflang, 2020) Direct marketing is a contact approach inwhich the customers are reached without the mediators (Karaxha et al., 2016), and themarketing content is controlled by the development of knowledge about the customersthrough relevant customer data (Subramanian, 2017) The companies today also prefer directmarketing since it allows them to understand how many products and services are soldaccurately (Hujić & Salihić, 2020) Public relation refers to the communication protocol tohelp the companies overcome the negative rumors and strengthen their corporate image(Gürel & Aydin, 2016) To unlock the effectiveness in public relation, the companies must usethe media intensively and ensure that their media releases, activity agenda, and socialprogrammes to be sent to the media (Tandoh, 2020) Personal selling is defined as theindividual communication to deliver the message that encourages the customers to purchasethe companies’ products and it is often conducted by the sale employees (Yapa et al., 2020).Personal selling is also considered as effective tool in promotion marketing due to itleverages the strengths of each salesperson during the conversation with the customers(Olariu, 2016) Another name of personal selling is mass marketing movement with thesalesperson are sent to the field in order to meet the current and the potential customers(Nurmartiani et al., 2020) Sale promotional offers are being used intensively in the realm ofthe marketing in order to leverage the purchase of the customers through typical andtemporary tools such as price reduction, loyalty discount, rebate, coupons, etc (Gbadamosi,2020) The main objective of sale promotional offers is to increase the sales of the companies

in a short-term period such as off season (Srilekha et al., 2011) Although, the companiesmust pay attention to the customers’ behaviour when running sale promotional offers sincethe customers expose to greater financial risk towards the products and services being sold athigh discount level (Santini et al., 2015)

2.5 Place marketing mix

Place marketing mix is considered as the distribution process to deliver the products andservices to the target customers (Išoraitė, 2016) It also represents for a distribution channelfrom the sellers to the end-users within an integrated supply chain network that requires intra-and inter-firms communication and coordination as well as cost and inventory management(Mukhamedjanova, 2020) Zhu (2020) classified distribution channel into direct channel andretail channel, in which, direct channel refers to the sales of the companies’ products andservices directly to the customers while retail channel refers to the relationship between themanufacturers, the retailers, and the customers in the distribution network Although, thenumber of the players in the distribution channels of the companies can be extended to manywith the involvement of the brokers, the sale agents, the wholesalers, etc (Anderson et al.,2020) According to Segetlija et al (2011), distribution process of the companies must qualifythe volume, space, and time requirements and the primary objective of this process is toensure that the delivery deadline is met, and the customers’ demands are satisfied The firmsneed to put their products and services in the locations where the customers are easily toapproach (Elvinda et al., 2018) It means the distribution channels must be selected throughthe correctly choices of suitable transportation method, the setup of logistics chain,warehousing, and inventories, order processing, and protective packaging (Yusuf et al.,2019) In competitive environment, the customers increase their requirements related to theproduct shipping and they demand to receive the sellers to deliver the products in agreed timewith promised condition (Vasić et al., 2019) The delivery quality is even more during theCOVID-19 epidemic when the customers expect to receive the products after online orderingprocess (Dsouza & Sharma, 2020) In addition, effectiveness and efficiency in the companies’distribution channel also contributes to the success of a new product (Kagiri, 2019) Toachieve successful place marketing strategy, the companies must pay attention to setupappropriate distribution channel through adequate size of sales network and the number of thefacilities for sales (Anđelković et al., 2018) In addition, the companies should consider thedistribution location to shorten delivery time and to increase product availability while thedistribution cost is minimized (Andjelkovic & Radosavljevic, 2020) Recently, the companiespay greater intention to the setup of omni-channel which is known as an approach to setup thechannel and the location in the way of bringing seamless experience to the customers (Xu &Jackson, 2019) To setup omni-channel, the companies leverage the technology advantage

such as the application of digital platforms along with the use of offline channels to pursuethe customers to purchase their products and services (Merritt & Zhao, 2020).

2.6 Empirical evidences of marketing mix used in e-banking

Over the time, there were several empirical evidences related the use of marketing mix in banking or Internet banking Chille (2018) analyzed the effect of marketing mix on theadoption of Internet banking in Tanzania This researcher found that only placing marketinghad significant and positive impact on the adoption intention of the Internet banking users Inaddition, Chille suggested that commercial banks can improve the adoption of Internetbanking through promotional campaigns, adequate supply of products when needed, servicedelivery training for the employees, and market-driven products setup Hoang (2017)developed a thesis to evaluate the Internet banking marketing in Agribank Hanoi Thisresearcher firstly explored the product marketing of Agribank’s Internet banking services andfound that it is integrated with many sub-services like bank transfer, invoice payment, etc.Most of Internet banking services which were being offered by Agribank Hanoi are free andthe bank only requires small fee for bank transfer In addition, Hoang provided an evidence inwhich the customers provided their assessment of the distribution channel of Internet bankingservices was appropriate since the customers were able to open Internet banking accounts in 9transaction offices The branch also adopted different marketing campaign in specificseasonal events to boost the customers’ demands Braciníková & Matušínská (2017) alsoexplored the marketing mix in banking industry and they signified the transformation from4P’s marketing to 4C’s marketing whether 4Cs represents for customers’ needs and wants,cost to satisfy the customers, convenience, and communication They also highlighted theusefulness of the Internet technologies to allow the banks to setup hybrid model in whichphysical branch is combined with virtual services facilities such as Internet banking andtogether it boosted the customer satisfaction Elbeck & Dedoussis (2020) also addressed theimportance of creating innovative Internet banking products that should touch different needs

e-of the customers such as the investment Internet banking product, the ability to transfermoney between customers’ accounts, etc Dubauskas & Išoraitė (2020) also highlighted thatthe digital era opening the opportunity for the advertising activities for Internet bankingservices to be integrated with digital platform to strengthen the messages to the customers.Yilma (2019) indicated that Internet banking brings the easy to use and the convenience tothe customers and the banks should leverage this service through the introduction ofinnovative banking services integrated in their Internet banking platform to better satisfy the

customers Ayuba & Aliyu (2015) however highlighted the importance of using based marketing instruments and the integration with e-commerce platforms Behind of thatAyuba & Aliyu detected the barriers when the banks roll out their Internet banking servicessuch as the poor technology infrastructures and connectivity, the cyber-security issues, etc

Internet-Research Objective Literature Review Survey Design

Chapter 3 Research Methodology3.1 Research design

The study is developed with a research design as below:

Figure 3.1: Research Design

The study is gone through six major steps At first, the research objective is carefully selectedupon on the initial view of the e-banking services performance at Agribank Hai Duong 2 Thestudy focuses on the marketing mix aspects of this banking services so that the second steprequires the collection of the understandings of marketing mix and its four traditionalcomponents, including product, price, place, and promotion To capture how these fourmarketing mix components in Agribank Hai Duong 2, a survey is created with the self-administered questionnaire to be developed The questionnaire is designed to collect theprimary data from the customers of Agribank Hai Duong 2 who are using e-banking services.After the data is collected, it is analyzed by using appropriate data analysis techniques Theresults of the data analysis, then, are described and the findings are generated accordingly

3.2 Research method

Quantitative and qualitative are two research methods that are preferred by the researchers forsocial sciences Qualitative method involves the participant or non-participant observation,focus group discussion, archived document, notes, etc in order to perform content orthematic analysis to provide the understandings (Hameed, 2020) Quantitative method,however, utilizes the data collected from the questionnaires and the statistics software toperform the data reliability and validity before providing the understanding through thesummary of data analysis results (Hameed, 2020) To choose the best research method, the

advantages and the disadvantages of each research method should be explored Qualitativemethod has the advantages of bringing wider and unique findings of behaviour and it alsosupports the process of developing new theories, while quantitative method offers tools andtechniques to help the researchers to reduce time and resources and hence reducing the biasesfrom guesswork and generalizing the findings (Daniel, 2016) Although, each researchmethod has its owned weakness in which the key weakness of qualitative method isunreliable or inaccurate finding due to the involvement of subjective assessment while thekey weakness of quantitative method refers to its inappropriateness in studying complexsocial phenomenon (Daniel, 2016)

The author selects qualitative method for this study This research method is employed sincethe author does not aim to make data validity and reliability or perform statistics analysis Inthe contrast, the author targets to study the performance of the marketing mix programmesconducted by Agribank The analysis process still involves the data collected from the surveyprocess, but the data is used as supporting documents to verify the author’s observation andviewpoints By doing that, the key disadvantage which is mentioned above is addressed Itmeans the author does not only use guesswork to derive the findings but also use the data forvalidation purpose Under the realm of qualitative method, action research is conducted, and

it couples scientific knowledge with Agribank Hai Duong 2 knowledge of e-bankingcustomers This process helps to address the problem related to the decrease in e-bankingaccounts in 2020

3.3 Population and Sample

The population refers to all e-banking customers of Agribank Hai Duong 2 The populationsize is found in Table 1 whether the number of e-banking accounts in the branch was 60,918accounts in 2020 According to Adam (2020), when the population size is known, the samplesize can be calculated through Yamane’s equation:

n = N / (1 + Nd2)Where:

− n: Sample size

− N: Population size

− d: Margin of error (e.g., 5%)

Adopting this equation, the sample size is calculated at 397 or 397 e-banking customers ofAgribank Hai Duong 2 must be involved in this study

3.4 Data collection planning

To analyze the performance of the marketing mix programmes conducted by Agribank, asurvey is developed with a questionnaire to be designed in order to capture requiredinformation The questionnaire is self-administered by the e-banking customers of Agribankand it has closed-end statement It means the author predetermines the questionnaire’s itemsbefore sending it to the customers Then, a Likert’s scale is utilized to capture therespondents’ assessments To make the consistency, each questionnaire’s item comes up withpositive statement and the customers are asked to provide their opinions whether theystrongly agree or agree or neutralize or disagree or strongly disagree with these statements.Also, the author also asks the customers to provide their expectation of e-banking servicesand what the marketing contents should look like in order to catch their attention

Table 3.2: Items of the Questionnaire

Product

marketing

E-banking service of Agribank Hai Duong 2 is

E-banking service of Agribank Hai Duong 2 is easy to

E-banking services of Agribank Hai Duong 2 meets my

The monthly fees to use e-banking services of Agribank Hai

The money transfer fee in E-banking provided by Agribank

I only need to pay single fee to use all banking services in banking platform of Agribank Hai Duong 2 PRI3

e-I continue to use e-banking services of Agribank Hai Duong

Place

marketing

I can register e-banking services at any transaction offices

Agribank Hai Duong 2 has wide network in my area PLA2

I receive calls/personal contacts from Agribank Hai Duong

2 to offer me using e-banking services PLA3Time interval between registration and actual use of e-

communication and through mass mediaFrequently heard relatives, colleagues, … talk about

Source: Le (2018)

3.5 Data analysis techniques

The author carries some simple data analysis techniques such as frequency analysis anddescriptive statistics It means that simple statistics analytical actions like calculating meanvalue are performed in order to bring the \understanding of the central tendency of e-bankingcustomers towards each marketing mix component Also, the graphs and the tables areutilized for the better illustration of the research results During the data analysis, the authortries to explain the obtained results by using personal opinions

Chapter 4 Research Results4.1 Demographic characteristics of the respondents

The frequency analysis is adopted to analyze the demographic characteristics of therespondents The variables input is taken from the survey’s data and it consists of gender, age,education, e-banking services length, and frequency of using e-banking services

Figure 4.2: Gender Profile

After the survey was conducted, a total of 397 usable questionnaire was put into the analysis.Obtained result indicates the participation of 257 males and 140 females as e-bankingcustomers of Agribank Hai Duong 2 The number male e-banking customers is nearly doublethe number of females The share of male group is 64.7% while female group consumesabout 35% of the sample It can be concluded that e-banking services of Agribank Hai Duong

2 seems attractive to male customers although this service is designed to both genders Thisresult can be explained by the fact that e-banking is a technology enabler of the bank andmale persons are more excited of the technologies rather than female persons

Figure 4.3: Age Profile

Then, the age structure of 397 respondents is revealed As illustrated in the figure above, most

of the respondents declared their age between 21 and 30 years old since 268 respondents arepopulated in the group of 21-25 and 26-30 Among these two age groups, the number of therespondents age 21-25 years old is 110 and it accounts for 28% of the sample size while theage 26-30 years old has 158 respondents and it is equivalent to 40% of the sample size Thenumber of the respondents with age between 31 and 35 years old is also significant with 68people (17% of the sample size) Other age groups do not have many respondents A total of

34 respondents emphasized their age over 35 years old and 27 others indicated their agebelow 21 years old It is concluded that the customers of e-banking services in Agribank HaiDuong 2 is very young and they are technology-oriented as the key characteristics of theMillennials or GenY and Gen Z of Vietnam

Figure 4.4: Education Profile

The education level of the e-banking customers of Agribank Hai Duong 2 is also explored.Obtained result shows that 74% of the sample are those who successfully acquired education

from the universities while 10% of the sample are those who successfully obtained educationfrom MBA or PhD programmes Only 16% of the sample have education level belowuniversity such as from high school or community colleges It is concluded that e-bankingservices of Agribank Hai Duong 2 is attractive to those who have good educationbackground The frequency analysis applied for education variable proves this conclusion.Although, it is perceived that university education is very popular in Vietnam today HaiDuong is also a dynamic and developed province in comparison with other provinces inVietnam so that people who are living in this province receive adequate education

Figure 4.5: E-banking Services Length Profile

The length of e-banking services used by the respondents is also explored The frequencyanalysis output shows that the e-banking customers of Agribank Hai Duong 2 seems loyaltyusers due to 282 respondents have been using this service for more than 3 years, in which 108respondents have been using e-banking services of the branch for more than 5 years Thesample includes 90 respondents who have been using this service for 1-3 years and only 25respondents stated that they have been only using this service less than 1 year Based on thisresult, it is affirmed that after a customer registers e-banking services of Agribank Hai Duong

2, they are likely to keep using this service in long-term perspectives It is also considered as

a good signal for Agribank Hai Duong 2 to strengthen its e-banking services to lock thecustomers into its services chain This information also signifies the importance of customerloyalty programmes to long-time users in order to increase their engagement with thebranch’s e-banking services

Figure 4.6: E-banking Services Frequency Profile

The last demographic variable is the frequency of using e-banking services Obtained resultshows that more than 72% of the sample are those who have at least two e-bankingtransactions in a week In more detail, 128 respondents acclaimed the frequency of using e-banking services at two times in a week while 162 others indicated high frequency at morethan twice in a week The sample consists 88 respondents with the frequency of one e-banking transaction in a week Only 19 respondents stated that they often conduct fewtransactions in a month (less than once in a week) Based on this preliminary result, it isconcluded that e-banking services of Agribank Hai Duong 2 is being used intensively by itscustomers It also means that the customers perceive the benefits of using e-banking servicesand therefore their usage frequency is upraised In addition, higher usage frequency unlocks

the business opportunity for the branch to further expand e-banking services, to acquire newcustomers and therefore, to earn better revenues and profits

4.2 Evaluation of product marketing for the e-banking services of Agribank Hai Duong 2

In this section, the product marketing mix is put into the analysis This variable is measured

by four items as “E-banking service of Agribank Hai Duong 2 is well-diversified” (PRO1),

banking service of Agribank Hai Duong 2 is easy to understand and to use” (PRO2), banking services of Agribank Hai Duong 2 meets my demands” (PRO3), and “E-bankingservices of Agribank Hai Duong 2 is modern and secure” (PRO4)

“E-Figure 4.7: The diversification level of E-banking services

At first, the diversification level of e-banking services of Agribank Hai Duong 2 is evaluated.Obtained result shows that 239 respondents agreed with PRO1 or they agreed that e-bankingservices provided by the branch is well-diversified Also, there are 57 others who stronglyagreed with PRO1 The number of the respondents with neutralized evaluation is 63 and itaccounts for 14% of the sample while only 38 others implied strongly disagreed anddisagreed attitude that accounts for less than 9% of the sample Quantitatively, mean score ofPRO1 is 3.76 which is a relatively high value Based on this result, it is concluded that thediversification level of e-banking services of Agribank Hai Duong 2 is high In fact, when thecustomers use e-banking services of Agribank, they are able to access a wide range ofservices, from traditional services like bank transfer to electronic invoice payment, electronictax payment, open online deposit account, etc These services are well-mapped with thecurrent demands in Vietnamese banking services market and it remarks the effort of the bank

in delivering quality e-banking services to the customers In 2020, Agribank also introduces anew e-banking service line as it supports the customers to pay the tuition fees online Thisservice is specialized to the parents who need a convenient way to pay the tuition fees fortheir children

Figure 4.8: The easiness level of E-banking services

Second, the easiness level of e-banking services of Agribank Hai Duong 2 is analyzed.Obtained result shows that nearly 68% of the respondents (267 people) implied their agreedand strongly agreed with the statement of e-banking services of the branch is easy to use andeasy to understand The neutral assessment is found among 77 respondents while 53