THE EFFECT OF BANK SERVICE QUALITY TO CUSTOMER SATISFACTION IN VIETCOMBANK BANKING (A CASE STUDY OF VIETCOMBANK BANKING, HA NOI SUB BRAND, VIET NAM)
By TRI DUC TAI ANH (RONALDO) 014200900159
A thesis presented to the
Faculty of Economics President University
In partial fulfillment of requirement for
Bachelor Degree in Economics Major in Management
March, 2013 PANELOFEXAMINERS APPROVALSHEET
The Panel of Examiners declares that thethesis entitled “The effect of bank servicequality tocustomersatisfaction in Vietcombank(Case study in Vietcombank, Vietnam)”.Thatwassubmittedby TriDuc Tai Anh majoring inBanking & Financefromthe Faculty of Economic was assessed and approvedtohave passed theOral Examinations.
Filda Rahmiati, MBA ______Chair-PanelofExaminers
Geraldine B. Advincula, MBA ______
Examiner I
Dra.Genoveva, M.M ______Examiner II
CHAPTER I INTRODUCTION
1.1 Background of study
An Automatic, Automated Teller Machine or Bank service is a magnetic- stripped bank service that was primarily introduced to allow customers to withdraw cash from their account without human intervention (Economy watch, 2010). Based on the world’s economy nowadays, there is a good chance that anybody has a BANK service, which stands for Automated Teller Machine. This service gives the ability to go to a BANK and perform transactions. Customers have access to their funds 24 hours per day, seven days per week (Rupa .R. Nakman, 2009). So, it will be easier for anybody, even for the student. BANK service is one of today's most ubiquitous financial instruments. For bank management perspectives, identifying the appropriate market for the BANK service, interpreting consumers’ needs for the product and developing business strategies are crucial to cope with fierce competition in the BANK service market. The services have capacity to support consumers in their everyday life activities without much concerning about cash in hands. For the entire customers, BANK service (including basic BANK Service, Debit Service, Credit Service, Master Service, and Visa Service) is the good choice on doing business.
The bank’s appearance with the main purpose is currency turnover in order to serve everybody’s business. Moreover, our society is increasing more and more, there are too many new commercial banks or private banks are building up, so it is lead to
Page | 1 the competition about service quality and product safety. One of the most popular banking services which are everyone using nowadays is BANK Service.
In this research, the researcher would like to analyze about the BANK service of Vietcombankbanking because there is a Vietcombank Sub Branch near from my home, so it will take easier for taking data and analysis. The profit Vietcombank targets $238.6M after tax profit in 2012
Vietcombank is targeting an after tax profit at 4.929 trillion dong or US$238.6 million, a year on year increase of 17%. It is also aspiring for a pre tax profit of 6.59 trillion dong in 2012, up 15% year on year.
The bank also targets to reach total assets growth of 18% by the end of 2012, credit growth at 17% and total deposit growth at 18% on year.
Vietcombank’s bad debts ratio in 2012 is expected to be kept at below 2.8% against 2.03% in 2011. The bank also expects a dividend payment of12% this year.
The bank’s director board will submit its plan in the Annual General Meeting to list 1,787,023,116 shares belonging to the state holding in VCB on the stock market, accounting for 77.11% of the bank’s chartered capital in 2012.
In addition, in 2012, VCB plans to set up more subsidiaries such as asset Management Company, Remittance Company and consumer credit finance company. Currently, Vietcombank has some subsidiaries such as financial leasing company and Securities Company
a. Capital
Vietcombank receives deposits, manages, tracks balances and provides account services to customers swiftly and securely at the lowest cost.
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When placing deposit at Vietcombank, Customers can open free-of-charge the following account types: 1. Current account 2. Special account: payment-only, collection-only, auto-invest, etc.
b. Customers
Vietnamese organizations which are established and operating under Vietnam’s laws, foreign organizations which are established and operating under the laws of the countries where the organizations are established.
c. Benefits
1. Simple account-opening and transaction procedures
2. Select number account as desire.
3. Available VND or foreign currency account options
4. Money in account of Customer is safe and secured
5. Easy cash deposit and withdrawal at all Vietcombank branches
6. Conduct immediate transfer within Vietcombank’s network
7. Diversified and convenient payment service at the lowest cost through Vietcombank wide branch and correspondent network.
8. Modern e-banking services: VCB-Money, Internet banking.
9. Exclusive supporting services: Auto-invest, central fund management, e-bank, etc.
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d. To use Customer can open accounts with any Branch of Vietcombank country-wide. Fill in the form Account-opening Application and provides required documents as instructed by the bank.
Deposit and withdrawal methods: 1. Deposit and withdrawal in cash 2. Deposit and withdrawal by transfer: transfer check, certified check, payment order, collection order, etc.
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The list of sub brand in VIetnam
T Sub Brand Address number City
A SHOWROOMTHA 1 Sho wroomLongBiên 2A,NgôGiaTự,P.ĐứcGiang.QuânLongBiên, 0438773 HÀNỘ 2 ShowroomMỹĐình 16PhạmHùng,MỹĐình,H.TừLiêm, HàNội 438759 H ÀNỘ 3 ShowroomGiảiPhóng KM10,ĐƣờngGiảiPhóng,x.TứHiệp,ThanhTrì 3.681.53 H ÀNỘ 4 CôngtyCơKhíChuyên Km12Đ ƣờng32-QLộ32–PhúDiễn-TừLiêm- 438759 H ÀNỘ 5 ShowroomBắcNinh PhốMới,TƣơngGiang,TXTừSơn,BắcNinh 438759 B ẮCNI 6 ShowroomVĩnhPhúc NguyễnTấtThành,P.TíchSơn,TP.VĩnhYên,T. 02113.71 VĨN HP 7 ShowroomTháiNguyê Tổ04,P.CamGiá,TP.TháiNguyên,T.TháiNgu 02803.50 THÁIN
8 S howroomThanhHóa X.H oằngQuỳ-H.HoằngHóa -T.ThanhHóa 0373.647 THAN B Sub Brand
9 ĐạiLýĐàoDƣơng 173HoàngHoaThám-TTCaoThƣợng- 2,403,878 BẮ CGI
1 ĐạiLýXuânHòa Số45-PhốKimĐồng-HợpGiang-T.CaoBằng 0263.853 CAOB 1 ĐạiLýVạnToàn PhƣờngYênPhúc –Q.BiênGiang-TX 33,719, HÀN Ộ 1 ĐạiLýSaoĐỏ 07NguyễnHuệ -NguyễnTrãi–H.ChíLinh– 03203.58 H ẢID 1 ĐạiLýĐôngĐôHảiDƣ Km3-NguyễnLƣơngBằng-TP.HảiDƣơng 3,203,891 HẢID 1 ĐạiLýTrọngThiện 4B-LêThánhTông–MáyTơ-NgôQuyền- 0313.614 HẢIPH 1 ĐạiLýMinhPhúc Số1B -25/10NúiĐèo,ThủyNguyên,HảiPhòng 0313.642 HẢIP H 1 ĐạiLýSôngĐà Km3,Quốclộ6,TP.HoàBình–T.HoàBình 02183.29 HÒAB Ì 1 ĐạiLýBảoChâu Km5,PhốNgọc,TrungMinh,ThànhPhốHòaBì HÒA BÌ 1 ĐạiLýĐôngĐôHƣngY Số08-ĐinhĐiền-P.LamSơn-TXHƣngYên- 03213.54 HƢ NG 1 ĐạiLýNguyễnLê ThônVĩDạ,X.HoàngĐông,TP.LạngSơn,T.Lạ 043.9260 LẠNG 2 ĐạiLýHuyLong Số70-NhạcSơn-P.DuyênHải-TPLàoCai- 0203.820 LÀOC 2 ĐạiLýVảiSợiMay Số19TrầnHƣngĐạo-TpNamĐịnh- 03503.84 NA M 2 ĐạiLýVậnTảiBiển 26NguyễnVănTrỗi-P.BếnThủy-TP.Vinh- 0383.595 NGHỆ 2 ĐạiLýMinhSơn KhuCôngNghiệpDiễnHồng- 0383.677 NGH Ệ 2 ĐạiLýNguyễnHuệ PhốCầuHuyện-ThịTrấnThiênTôn-H.HoaLƣ- 0303.624 NIN HB 2 ĐạiLýNamCƣờng Số09,ĐƣờngKCN,P.VânCơ,TP.ViệtTrì,T.Ph 2,103,952 PHÚ T 2 ĐạiLýTríLực Khu8–P.HảiHòa -TXMóngCái- 0333.773 QUẢ N 2 ĐạiLýSơnLa KhuCNChiềngSi nh–X.ChiềngSinh– 223,874, SƠNL 2 ĐạiLýTânThànhThái 126LêQuýĐôn–P.TiềnPhong–TP.TháiBình– 0363.834 TH ÁIB 2 ĐạiLýThànhĐông ThônHữuLễ 4-XãThọXƣơng-ThọXuân- 0373.535 THA N
Source: Vietcombank.com.vn
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The list of sub brand in Vietnam
TT Sub brand address Phone 7 ShowroomAnLạc 36C11QL1A,TânKiên,Bình 08.37561241 8 ShowroomBìnhTân 27/31KinhDƣơn gVƣơng,P. 08.37526171 9 ShowroomBìnhTriệu 48/1QL13,HiệpBìnhChánh , 08.37269447 10 ShowroomCầnThơ 340CáchMạngThá ngTám,T 0710.886137 11 ShowroomVĩnhLong ÂpTânVĩn hThuận,XãTânng 12 ShowroomLáiThiêu Số3A,KhuPhốHòaBình,TT. 13 ShowroomBìnhPhƣớc 648PhúRiềngĐỏ-
14 ShowroomTiềnGiang KhuPhố2- 0733.955633
B Sub Brand
15 ĐạiLýTânTháiDƣơng 153/4TrầnHƣngĐạo,P.MỹP 0763.212.178
16 ĐạiLýTháiDƣơng 25/10TrầnHƣngĐạo-
17 ĐạiLýViệtHƣng 225 ThủKhoaHuân,Tổ8,K.C 18 ĐạiLýDƣơngChíThanh TTTriTôn,H.T riTôn,AnGia 0763.507.357 19 ĐạiLýTƣHổ A15/124 QL1A -Phƣờng8- 0781.3956789 20 ĐạiLýTiếnPhát 6A-7AHùngVƣơng, 07803.818.999 21 ĐạiLýThậpNhấtPhong 19LýTựTrọng,Phƣờng 2,TP. 0673870889
22 ĐạiLýMỹPhúHƣng 318Quốclộ30,KhómMỹThƣ 067.3870889 23 ĐạiLýKiênGiang 181CáchMạngThángTám,P. 0773.918.826
24 ĐạiLýÁnhSáng 132 0793.615.636 25 ĐạiLýHoànVũ 726CáchMạngThángTám,K 0663622144
26 ĐạiLýVMC 22CộngHòa,P.4,QuậnTânB
27 ĐạiLýTânTrƣờngLong ấpBếnCó-X.NguyệtHóa- 0743.842335 V 28 ĐạiLýPhuớcThànhTài QL1A,XãTânHạnh,H.Lon g 0703.877.427
Block Hồ VĩnhLong Source: Vietcombank.com.vn
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1.2 Company profile
The Joint-Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) was established after the equalization of the former Bank for Foreign Trade of Vietnam by its Initial Public Offering (IPO) on 26 December 2007 on Ho Chi Minh City Stock Exchange. Over 45 years of continuous development, Vietcombank has projected itself as the leading bank in Vietnam in various segments such as treasury, international settlement and trade finance, bank service, banking technologies, etc. A home of highly experienced and skilfulstaff who possess professional Working attitude, Vietcombank is proud to be a prime choice for top local and foreign corporations and Enterprises as well as individual customers. Originally established as a specialized bank serving external economic activities, Vietcombank today has grown into a universal bank with presence in all major cities and provinces of throughout the Country. A wide range of diversified products are offered so as to maximize customers’ satisfaction. By The end of 2008, Vietcombank network comprised 1 Head Office, 1 Operations Centre, 60 branches and 209 transaction offices nationwide. The bank also has 1 training centre, 3 local subsidiaries, 1 subsidiary In Hongkong, 4 joint ventures, 3 associated companies and 1 representative office in Singapore. The Customer service network is further extended and diversified with 1,244 BANKs and 7,800 POS across The country. The Bank’s operation is supported by its relationship with more than 1,300 correspondent Banks in approximately 100 countries and territories. This year marked a significant milestone in Vietcombank’s history with its transformation into a joint stock commercial bank that has the largest chartered capital and total assets in Vietnam. While the Economy experienced various difficulties, the Bank was further challenged with the critical tasks of Structural transformation and sustaining business efficiency, Vietcombank has successfully achieved its projected business plan. Vietcombank was voted as “Best domestic bank in Vietnam” by Asia Money as An acknowledgement of its outstanding achievements in 2008.
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1.2.1Organization structure
Source: vietcombank.com.vn Page | 8
1.2.2 Vision and Mission a. Vision of Vietcombank banking is becomes the leading of investment bank in Vietnam. b. Mission in the early 2000s, the mission to build socioeconomic infrastructure for the socialist development of the North and to supply human and material resources for the cause of liberating the.
South generated an urgent need for a financial institution dealing with international banking operations. On 30th October 2002, the Government
Council issued Decree No. 115/CP for the establishment of the Bank for Foreign Trade of Vietnam on the basis of the existing Foreign Exchange Department of the State Bank of Vietnam.
c. Objectives With the purpose of “Focusing on the implementation of equalization, creating firm foundation for the establishment of a financial corporation”, in 2006, the Bank will strive to achieve the following objectives and tasks:
1.2.3 Job description:
The Manager (Chief Financial Officer) is responsible for the all of the Bank's fiscal operating results utilizing generally accepted accounting principles, such as cost accounting, budgets, regulatory agency and government reports ensuring the safeguard of Bank assets. Counsels senior management on fiscal control and profitability; prepares, presents and interprets financial reports to senior management; adheres to tax laws and regulatory compliance to properly reflect the financial position of the Bank. Directs accounting department activities; provides leadership, training and supervision within the department; provides a high level of customer relations and service; and ensures compliance with Bank policies and procedures. The position of Chief Financial Officer assists in attaining established Bank and
Page | 9 department financial goals. Performs supervisory duties of department staff, coordinates staff for coverage in all related areas of the department.
The Officer (Teller) is responsible for performing routine branch and customer services duties; accepts retail and commercial checking and savings deposits; processes loan payments; cashes checks and savings withdrawals; promotes business for the Bank by maintaining good customer relations and referring customers to appropriate staff for new services.
The position of Receptionist is responsible for performing customer reception activities; performs switchboard operations; answers questions or inquiries of a general nature; determines appropriate direction for business inquiries; issues messages; performs routine clerical duties as required.
The position of Security is responsible for bank and customers secure, open and close bank’s door for customer, keep customers in safe.
1.3 Problems Identification
Nowadays, every bank are focus to development their services, because the economy is also get fast developing, so the customer demand about doing their business also is very high. Banking services at present allow the customers that they can use their banking services in anywhere such as: Online Banking, Automated Teller Machines (BANKs), Mobile Banking, SMS and Net Banking Services, but the most friendly and popular with bank customers is BANK service, and it has becomes a friendly system which everybody can use it.
Lawrence (2000) found that affective credit attitude (feeling about using BANK services) and gender influenced college students' credit purchasing. Affective credit attitude predicted the purchase of clothing, electronics, entertainment, travel, gasoline, and food away from home. But sometime BANK Service may be a cause of
Page | 10 customer’s uncomfortable about its service quality for example like losing service because of system error, when the customer want to take out their cash, they put their service into BANKs but the system is error that time, so it cannot be put out the service like normally. Time is very important on doing business, but sometime the customer have to wait too long in front of BANKs key to wait for their turn, or because of delay services, the customers cannot buying, order, or booking anything, may be the process that time is not running.
According to those problems, Vietcombank banking is recognized recent problems and they decided to do the regular check and update their system to help customers an easy to access BANK Service. However, such borrowing came with high interest rates, but low transactions costs can make BANK services attractive relative to bank loans. In addition, BANK services offer liquidity services by helping consumers to avoid some of the opportunity costs of holding money.
However, the BANK Service although still have some error to make customers are not satisfy but they still need to use this service. So the researcher realizes that it should be good topic and interesting to investigate the present problem of BANK service quality of Vietcombank Banking. The researcher would like to find the dimensions that make customers are not satisfied with BANK service of Vietcombank banking.
1.4 Statement of Problem
This research is analyzing the customer satisfaction of using BANK service banking service quality of Vietcombank banking through the BANKs machine. The following problem statements have been used to guide this research work in order to clarify “what dimensions of service quality that influences the customer on BANK service at bank Vietcombank sub branch?
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1.5 Research Objective To examine the essential dimensions of BANK Service quality among five dimensions which are Tangibles, Reliability, Responsiveness, Assurance and Empathy.
1.6 Significance of study
The research is conducted for several benefits which are divided into several aspects: a. Banking Industry Banking also can understand and apply the solution of BANK Service quality which is helping bank to know more about the relationship between customer’s perceptions on BANK Service of bank Vietcombank via customer satisfaction. It also is a perspective for bank information to increase their competition with other banks through a system that will work effectively and to facilitate all transactions. b. Further Research: The writer will understand the impact of BANK service quality to customer satisfaction in Vietcombank Banking. Thus, this book will be benefit and become one of references if someone wants to do research about BANK Service quality.
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1.7 Theoretical Framework
Tangibles (X1)
Reliability (X2)
Customer Responsiveness Satisfaction (Y) (X3)
Empathy (X4)
Assurance (X5)
Figure 1.1: Theoretical Framework
The Relationship between Service Quality and Customer Satisfaction. Source: Delivering Service Quality by Zethaml, Parasuraman and Berry (2005) This is the Service Quality (SERVQUAL) model made by Zethaml, Parasuraman and Berry (1995). This model is including five factors (variables) of customer satisfaction; there are Reliability, Responsiveness, Assurance, Empathy and Tangibles. 1. Tangibles: The appearance of physical facilities, equipment, personnel, and communication material 2. Reliability: The ability to perform promised service dependably and accurately.
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3. Responsiveness: the willingness to help customers and to provide prompt service. 4. Assurance: the knowledge of employees and their ability to convey trust and confidence. 5. Empathy: the provision of caring, individualized attention to customers.
1.8 Scope and Limitation Study
The research is analyzing about the effect of BANK Service quality and the Satisfaction of Customer about the BANK Service Quality. Here are several limitations of this research:
1. This research is only concern care about the one who are using Vietcombank Banking service in Ha Noi Sub Branch, and the questionnaire also is only give to them. 2. It is difficult to get more information from the bank because privacy police or secure privacy. In that case, the researcher will be focus on BANK Service quality using BANK system. 3. The data have to collect from Vietcombank customers and mini 1 year as cost. They are in cost for this research.
1.9 Research Hypothesis
A statistical hypothesis test is a method of making decision by using experimental data. According to Ronal Fisher for the formula test of hypothesis “Critical tests of this kind may be called test of significance and when such tests are available we may discover whether a second sample is or is not significantly different from the first”. The main hypothesis is using in this study such as:
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Hypothesis
Ho: Tangible is not significant to customer satisfaction
H1: Tangible is significant to customer satisfaction.
Ho: Assurance is not significant to customer satisfaction
H2: Assurance is significant to customer satisfaction.
Ho: Reliability is not significant to customer satisfaction
H3: Reliability is significant to customer satisfaction.
Ho: Responsiveness is not significant to customer satisfaction
H4: Responsiveness is significant to customer satisfaction.
Ho: Empathy is not significant to customer satisfaction
H5: Empathy is significant to customer satisfaction.
1.10 Definition of Terms BANK service: A plastic service used to withdraw money from a banking institution's automatic teller machine (BANK). Sometimes this service may also be used as a debitservice, but not all BANK services have this capability(Sullivan,Arthur and Steven M. Sheffrin, 2003).The BANK service is a convenient service issued by our banks and credit unions with which we can access our checking and savings accounts. The BANK service has a number of different applications and is well worth the small effort required to apply for one.
Customer satisfaction: Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or
Page | 15 surpass customer expectation. Customer satisfaction is defined as “the number of customers or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals”(Phillip E. Pfeifer, 2010). In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a customer satisfaction metric very useful in managing and monitoring their businesses (David J. Reibstein, 2010)
Service: Every action or performance offered by a party to another party which is in principle intangible and does not bring about any transfer of ownership whatsoever. Its product may and may not be bound to physical product (Susan Fournier & David Glen Mick, Rediscovering Satisfaction, journal of marketing 63, October, 2000)
Quality: Quality is the degree to which all the services delivered meet the expectation of the customers as a result of promise from service communicated (Zeithaml and Bitner, 2003)
Service quality: Service quality involves a comparison of expectations with performance. According to Lewis and Booms (2004) service quality is a measure of how well a delivered service matches the customers’ expectations.
Banking services: According to law No.10 of 2008 on the banks are: Bank is a business that collect funds from the public in the form of saving and channelled it to the public in the form of credit and or other forms in order to improve the standard of living many people.
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CHAPTER II LITERATURE REVIEW
2.1. Theoretical of Bank service.
2.1.1. The functions of Bank service.
One of the most popular forms of consumer credit today is accessed via Bank service cards issued by VISA, MasterCard, Discover, and many smaller card companies. Bank service after their holders access to either installment or non- installment credit because the customer can charge a purchase on the account represented by the card and pay off the charge in one billing period, escaping any finance charge or choose to pay off the purchase price gradually, (Rose & Hudgins, 2001,)
Today, Bankcards have many functions and are very versatile. According to The Functions of a bank Card (James Lemoine, 2008), they can be summarized into the following functions:
The bank card can be used in a variety of ways that include: withdrawing cash at an Bank service card, payment for goods and services purchased at stores and restaurants, payment for goods and services purchased online, checking your account balances at an bank card machine, depositing cash, checks, and pay checks at an bank card machine, withdrawing local currency at a foreign bank's bank card machine at a fair exchange rate. The customer can also paying routine bills, such as utilities, phone and social security fee bills. You can also pay your taxes and legal fees through the card. Getting printed bank statements. Ordering a check book. Updating passbooks. Transferring money from one account to another. Loading money onto your existing value cards, such as the prepaid SIM card. Purchasing postage stamps, lottery tickets,
Page | 17 train tickets and concert tickets. Shopping for mall gift certificates. Depositing cash or checks in the account linked to your Bank card. Donating to charities.
Perhaps the most significant fact to emerge from the summary of card functions is that strictly speaking, they are not debit cards. Although they can be used to obtain cash via bank card, the debit will be made from the bank card account and not from the holder's bank account.
The Bank cards discussed above are bank cards. Different bank cards have different card functions. The functions of bank cards really depend on the individual bank itself. Some bank card may have all of the above functions and some may not.
2.1.2. Bank service Networks
Bank Card (including Credit card, Debit card, MasterCard, basic Bank card, VISA card) has the same networks with other card. According to Agnihotri Peeyush (2001) has explained the networking of bank Card of different banks including a computer network, banking systems, websites or electronic networks that connects the Bank in “IT of getting cash”. While interbank networks provide capabilities for all Bankcards within the same network to use other banks' service that belong to the same network, the services vary. For instance, when a person uses their bank card at a Bank that does not belong to their bank, the basic services, such as balance inquiries and withdrawals, are usually available.Participants in bank card networks are primarily comprised of customer, payment place, central processing unit, network switching equipment, and bank system. These participants are involved in series of interrelated bilateral transactions. A bank card transaction involves five parties. The card of bank is connected to the accounting platform of the bank through bank service switches. The customer can use their card in anywhere which is offer card facilities to purchase goods or services. Then the information will directly send to the central processing unit to process the data. From central process, the data one more time send
Page | 18 to any bank system through network switching equipment. So the theoretical framework will be like this:
ATMs, shopping Customer (with centers, stores, bank service) school, or other public facilities
Central processing unit
Computer for Network switching bankA, bank B, equipment
bank C…
Figure 2.1: BANK SERVICE Card Network Source: The Organization and Structure of Banking and the Financial – Service Industry (Peter S. Rose & Sylvia C. Hudgins 2002, p157)
This figure will explain about bank card network. The customer can use their bank card to withdraw their money in bank service system at bank or go to shopping or make a payment at school but they don’t need to bring much of money. The information will process through Central Processing unit and switch through network switching equipment. Then the last information will be send to the bank which BANK SERVICE belongs to. In this research, it is Vietcombank banking.
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2.2. Service 2.2.1. Definition of Service The concept of service comes from business literature. Many scholars have offered various definitions of service. For example, Ramaswamy (2006) described service as “the business transactions that take place between a donor (service provider) and receiver (customer) in order to produce an outcome that satisfies the customer”. Zeithaml and Bitner (2006) defined service as “deeds, processes, and performances”. According to Gronroos (2000),A service is an activity or series of activities of more or lessintangible nature that normally, but not necessarily, take place ininteractions between the customer and service employees and /orsystems of the service provider, which are provided as solutionsto customer problems. Yong (2000) reviewed definitions of service and noted the following features of service that are important to an understanding of the concept. First, service is a performance. It happens through interaction between consumers and service providers (Deighton, 2002; Gronroos, 2000; Ramaswamy, 2006; Sasser, Olsen, & Wyckoff, 2008; Zeithaml&Bitner, 2006). Second, factors such as physical resources and environments play an important mediating role in the process of service production and consumption (American Marketing Association, 2000; Collier, 2004; Gronnroos, 2000). Third, service is a requirement in terms of providing certain functions to consumers, for example problem solving (Gronroos, 2000; Ramaswamy, 2006). From these points Yong (2000) concluded that “a service, combined with goods products, is experienced and evaluated by customers who have particular goals and motivations for consumers for consuming the service.”
2.2.2. Characteristic of Service Based on Krurtz and Boone (Marketing Management, 2006) described that there are four special service characteristics such as: a. Intangibility: Services are intangible and insubstantial: they cannot be touched, gripped, handled, looked at, smelled, tasted or heard. Thus, there is neither potential
Page | 20 nor need for transport, storage or stocking of services. Furthermore, a service cannot be (re)sold or owned by somebody, neither can it be turned over from the service provider to the service consumer nor returned from the service consumer to the service provider. Solely, the service delivery can be commissioned to a service provider who must generate and render the service at the distinct request of an authorized service consumer. b. Inseparability: Production and consumption of many services are inseparable.Quality in services often occurs during service delivery whereas quality in products isusually engineered at the manufacturing plant and delivered intact to the customer.Unlike goods producers, service providers do not have the benefit of a factory servingasa buffer between production and consumption. Service customers are often in theservicefactory, observing and evaluation the production process as they experiencethe services. c. Heterogeneity (Variability): Services especially those with a high labor content-are heterogeneous. Their performanceoften varies from producer to producer (performer to performer), from customer tocustomer, and from day to day. The quality of the interactions that bank tellers, flightattendants and insurance agents have with customers can rarely be standardized to ensureuniformity the way quality of goods produced in a manufacturing plant can. d. Perishability: A service is a perishable commodity. Consider an empty airline seat, an unoccupiedhospital or hotel room, or an hour without patient in the day of a dentist. In each case, Alost opportunity has occurred. Because service cannot be stored, it is lost forever whennot used. Plus the consumer cannot retain the actual service after it is produced. Howeverthe effect of the service can be retained for long time.
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Intangibles Service Inseparability Service cannot be seen, felt, cannot be separated heard or smell in the from their providers same manner as
Service
Variability Quality of Perish ability Service services depends on cannot be stored for 00000who provides them later sale or use when, where, and how
Figure 2.2: Four Service Characteristic Source: Philip Kotler and Gary Armstrong, Marketing Management, thirteenth edition page 269
2.3. Introduction to Quality Quality is a dynamic state associated with product, services, people, processes, and environments that meets or exceeds expectations (David L. Goetsch and Stanley B. Davis, Quality Management page 5).Quality as attitude, Olshavsky (2001) views quality as a form of overall evaluation of a product, similar in many ways to attitude. Fred Smith, CEO of Federal Express, defines quality as performance to the standard expected by the customer. The U.S. Department of Defence (DOD) defines quality as doing the right thing right the first time, always striving for improvement, and always satisfying the customer (Quality Management, page 4) According to Hardie& Walsh, (2003); Sower and Fair, (2005); Wicks &Roethlein, (2009), quality has many different definitions and there is nouniversally acceptable definition of quality.
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Some definitions of quality pointed out by Hardie& Walsh (2004) include: 1. “Quality is product performance which results in customer satisfaction freedom fromproduct deficiencies, which avoids customer dissatisfaction” – (Juran, 2005) 2. “Quality is the extent to which the customers or users believe the product or servicesurpasses their needs and expectations” – (Gitlow et al. 2009) 3. “Quality: the totality of features and characteristics of a product that bear on its abilityto satisfy stated or implied needs”– International Standards Organization (ISO). 4. “Quality is the total composite product and service characteristics of marketing,engineering, manufacture and maintenance through which the product in use will meetthe expectations of the customer” – (Feigenbaum, 2006) 5. “Quality is anything which can be improved” – (Imai, 2006) 6. “Quality is the loss a product causes to society after being shipped” – (Taguchi, 2009) 7. “We must define quality as “conformance to requirement” – (Crosby, 2008). 8. “Quality is the degree or grade of excellence etc. possessed by a thing” – (OxfordEnglish Dictionary). 9. “Quality is defined as the summation of the affective evaluations by each customer ofeach attitude object that creates customer satisfaction”- (Wicks & Roethlein (2009). 10. “Quality is the totality of features and characteristics in a product or service that bearupon its ability to satisfy needs” (Haider, 2001).
2.4 Service Quality
Service quality involves a comparison of expectations with performance. According to Lewis and Booms (ASQ the Global voice of Quality, first draft) service
Page | 23 quality is a measure of how well a delivered service matches the customers’ expectations.
Generally the customer is requesting a service at the service interface where the service encounter is being realized, and then the service is being provided by the provider and in the same time delivered to or consumed by the customer.
Christian Gronroos (Marketing and service business, first edition) also argued that there are two distinct constituents of service quality, the technical and the functional. In the health care field, technical quality focuses on the technical accuracy of the medical diagnosis and procedures, while functional quality is the manner in which the health care was provided.
In the long time, many researchers tried to define and scale of service quality. For example, Lehtinen (2002) indicates service quality into two dimensions, one is process quality as judged by consumers during a service, and two is output quality judged after a service performed. But according to Gronroos (1994) identified that there are also to dimensions which are the technical aspect (about what service is provided) and the functional aspect (about how the service provice). And based on the data from Peasuraman, Zeithaml and Berry (2005) proposed 5 Gaps Analysis Model and service quality with ten dimensions and finally they abridged become five dimensions to measure service quality (SERVQUAL) and this study will concentrate to SERVQUAL with new five dimensions analysis
2.4.1 Service Quality Model
Peasuraman, Zeithaml and Berry (2005) formulated a service quality model that highlights the main requirements for delivering the expected service quality.
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Figure 2.3.1 Service Quality Model (5 Gaps Analysis Model) Source: A. Peasuraman, Zeithaml and Berry “A Conceptual Model of Service Quality and its Implications for Future Research.” Journal of Marketing. Fall 2005
The service quality model shown in Figure 2.3.1 has identifies the five Gaps that cause unsuccessful service delivery.
The five Gaps that organizations should measure, manage and minimize:
Gap 1 is the distance between what customers expect and what managers think they expect - Clearly survey research is a key way to narrow this gap.
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Gap2 is between management perception and the actual specification of the customer experience - Managers need to make sure the organization is defining the level of service they believe is needed.
Gap 3 is from the experience specification to the delivery of the experience - Managers need to audit the customer experience that their organization currently delivers in order to make sure it lives up to the spec.
Gap 4 is the gap between the delivery of the customer experience and what is communicated to customers - All too often organizations exaggerate what will be provided to customers, or discuss the best case rather than the likely case, raising customer expectations and harming customer perceptions.
Gap 5 is the gap between a customer's perception of the experience and the customer's expectation of the service - Customers' expectations have been shaped by word of mouth, their personal needs and their own past experiences. Routine transactional surveys after delivering the customer experience are important for an organization to measure customer perceptions of service.
2.4.2 Simplified service quality:
Figure 2.3.2 simplified Service Quality gap model Source: Alan Harrison and Remko Van Hoek, Logistics Management and Strategy,
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Third Edition, page 44
Quality of service takes palce during service delivery, which is the interaction between the customer and the service process. Gaps can emerge between what the service is supposed to be, what the customer expected it to be, and how the customer perceives it when it is delivered (Zeithaml et al., Parasuraman et al., 2001). we can illustrate these gaps as a simpified gap model. Those gaps can be explan as below (Logistics Management and Strategy, Third Edition, page 44): Gap 1: refers to differences between customer expectations and how these have been developed into a service specification by the supplier.
Gap 2: refers to differences between how the specification was drawn up and how it was delivered.
Gap 3: refers to differences between what the customer expected and what s/he perceived as delivered
Gap 4: refers to differences between how supplier and customer perceived the service delivery.
2.4.3 Multidimensional Character of the Service Quality
Every banker company owner wants to get loyal customers, they need to know about the 5 Service Quality Dimensions. Each of the 5 Service Quality Dimensions makes an extra addition to the level and quality of service which the bank or company offers their customers. It also makes the service far more unique and satisfying. According to Fitzsimmons (2008), dimensions of service quality can be explained as:
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Dimension 1 - Tangibles;
The tangible Service Quality Dimension refers to the appearance of the physical surroundings and facilities, equipment, personnel and the way of communication. In other words, the tangible dimension is about creating first hand impressions. A company should want all their customers to get a unique positive and never forgetting first hand impression, this would make them more likely to return in the future.
Dimension 2 - Reliability;
The reliability Service Quality Dimension refers to how the company are performing and completing their promised service, quality and accuracy within the given set requirements between the company and the customer. Reliability is just as important as a goof first hand impression, because every customer want to know if their supplier is reliable and fulfill the set requirements with satisfaction.
Dimension 3 - Responsiveness;
The responsiveness Service Quality Dimension refers to the willingness of the company to help its customers in providing them with a good, quality and fast service. This is also a very important dimension, because every customer feels more valued if they get the best possible quality in the service.
Dimension 4 - Assurance;
The assurance Service Quality Dimension refers to the company's employees. Are the employees skilled workers which are able to gain the trust and confidence of the customers? If the customers are not comfortable with the employees, there are a rather large chance that the customers will not return to do further business with the company.
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Dimension 5 - Empathy;
The empathy Service Quality Dimension refers to how the company cares and gives individualized attention to their customers, to make the customers feeling extra valued and special. The fifth dimension are actually combining the second, third and fourth dimension to a higher level, even though the really cannot be compared as individuals. If the customers feel they get individualized and quality attention there is a very big chance that they will return to the company and do business there again.
Usually, customer evaluates service quality by comparing between what they expected and what they received from a particular supplier (Lovelock and Witrtz, 2007). Their expectations are formed by their Past Experience, Word of Mouth, Personal Needs and Advertising, this factors influences expected service.
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Figure 2.4: Perceived Service Quality Source: Delivering Quality Service by V. Zeithaml, A. Parasuraman and L.L. Berry (2005)
This figure can be explained by 2 parts. The first part is the effect from word of mouth, personal needs, past experience to expected and perceived service cycle. The second part is the influence of expected and perceived service cycle to Perceive Service Quality.The determinations of Service Quality before has explained by 10 point such as access, communication, competence, courtesy, credibility, reliability, responsiveness, security, tangibles, and understanding pr knowing the customer. But in the new research of the same writer (Zeithaml, A. Parasuraman and L.L. Berry), there are only 5 dimensions of service cycle, that is tangibles, reliability,
Page | 30 responsiveness, assurance and empathy. There is the definition of each point in figure 2.4 as below.
The Word of Mouth, Past Experience and Personal needs can be explain as follow:
a. Word of Mouth is the oral, noncommercial communication between a receiver and a communicator about a brand, a product or a service offered for sale (Arndt, 2007). WOM represents the client’s willingness to recommend the product and service to others in the near future (Dabholkar et al., 2008). It can present verbal communications between present customers and other people or other parties (Helm and Schlei, 2009). b. Past Experience of service encounter helps customers to determine the standards of any future service performance, especially, if the service is same or similar. It provides a brief cognitive standard about service quality that a customer uses during service encounter. The reason that makes customers decide to choose the same service provider and repurchase the same service is on the basis of their past experiences (Wathne et al., 2001). c. Personal Needs is to support and prove to company successes because they understand what customer needs and expects and organizations attempts to consistently exceed customer expectations for propose of creating and maintaining customer loyalty (Steve Hoisington and Earl Nauman, 2003).
Finally, we can see the importance perspective of WOM is greater with respect to the diffusion of new products and services.
SERVQUAL’s shortcomings result from the weakness of the traditional disconfirmatory definition of service quality which it incorporates. Yong (2000) notes several problems in this traditional definition of service quality. First, customers’ needs are not always easy to identify, and incorrectly identified needs result in measuring conformance to a specification that is improper. Schneider and Bowen (2005) pointed out that
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Customers bring a complex and multidimensional set of expectations to the service encounter. Customers come with expectations for more than a smile and handshake. Their expectations include conformance to at least ten service quality attributes (i.e., Parasuraman et al.’s 10 dimensions—reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding, and tangible).” (p. 29) (A Review of Service Quality in Corporate and Recreational Sport/Fitness Programs By Chia-Ming Chang, Chin-Tsu Chen and Chin-Hsien Hsu, Tajen Institute of Technology, Taiwan, Republic of China)
Based on the data which taking from “Service Quality and the AuQS 2000 Quality Management System” book of Prof. TeasyShawyunPh.D also explained about ten dimensions of Service Quality such as?
a. Reliability involves consistency of performance and dependability.It means that the firm performs the service right the first time. It alsomeans that the firm honors its promises. Specifically it involves:Accuracy in billing, Keeping records correctly, Performing the service at the designated time. b. Responsiveness concerns the willingness or readiness of employeesto provides service. It involves timeliness of service:Mailing a transaction slip immediately, Calling the customer back quickly, Giving prompt service (e.g. setting up appointments quickly) c. Competence means possession of the required skills andknowledge to perform the service. It involves:Knowledge and skill of the contact personnel, Knowledge and skill of operational support personnel, Research capability of the organization e.g. securities brokerage firm.
d. Access involves approachability and ease of contact. It means:The service is easily accessible by telephone (lines are not busy andthey do not put you on hold), Waiting time to receive service is not extensive, Convenient hours of operation, Convenient location of service facility
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e. Courtesy involves politeness, respect, consideration, andfriendliness of contact personnel (including receptionists, telephoneoperators, etc.) It includes:Consideration for the consumer’s property (e.g. no muddy shoes onthe carpet), Clean and neat appearance of public contact personnel f. Communication means keeping customers informed in languagethey can understand and listen to them. It may mean that the companyhas to adjust its language for different consumers – increasing the levelof sophistication with a well-educated customer and speaking andplainly with a novice. It involves:Explaining the service itself, Explaining how much the service will cost, Explaining the trade-offs between service and cost, Assuring the consumer that a problem will be handled g. Credibility involves trustworthiness, believability, and honesty.It involves having the customer’s best interests at heart.Contributing to credibility are: Company name, Company reputation, Personal characteristics of the contact personnel, the degree of hard sell involves interactions with the customer. h. Security is the freedom from danger, risk or doubt. It involves:Physical safety (Will I get mugged at the bank service?), Financial security (Does the company know where my stockcertificate is?), Confidentiality (Are my dealings with the company private?) i. Understandingthe customer involves making the effort tounderstand the customer’s needs. It involves:Learning the customer’s specific requirements, Providing individualized attention, Recognizing the regular customer. j. Tangiblesinclude the physical evidence of the service: Physical facilities. Appearance of personnel, Tools or equipment used to provide the service,
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Physical representations of the service, such as a plastic bank service cardor a bank statement, other customers in the service facility.
2.4.4 The Importance of Service Quality.
Service quality has importance value in existence and competitions from companies and organizations to other competitors. Zeithaml (2003) indicate that although service quality is that of the customer’s definition of quality, and not be organizations, it is still the organization that service in a very competitive environment. Service quality which is building and creating the company and organization’s reputations and famous, another hand, it helps company to earn the benefits from services and products, it helps to keep the customer loyalty to use services and products. The provision of high quality service is directly related to an increase in profits, market share and cost livings (Shohail, 2003).
Beside the advantages, the importance of service quality is seen in the effect that it has on the organization as o whole. It is seen in the following ways:
a. Service quality creates competitiveness for organizations and is associates with successful organizations (Kandampully, 2001). It has been said that many organizations sell a similar product of similar quality, and that the differentiator between them is the superior service quality the is offered to the customer (Arsali, et, 2005) b. Service quality effects relationships and relationship marketing as customer are willing to build relationship with organizations and there marketing liaison departments that provide service quality (Zeithaml, et al., 2003)
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c. Service quality affects to customer satisfaction by comparing what they expected with what they received from a particular supplier (Lovelock and Wirtz, 2007)
2.5 Customer Satisfaction
The word of Satisfaction came from Latin language, those are Satis and Facio. Satis means good, enough or inadequate and Facio means do or make. And there are also so many people have defined the customer satisfaction in different ways such as:
Customer satisfaction is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as “the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals” (Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein, 2010). From the beginning of the “customer service revolution” almost 20 years ago, a body of business research has focused on customer satisfaction and customer- focused organizations. Business consultants, corporations and others have worked to identify the characteristics of organizations that consistently please their customers, to develop tools for monitoring customer satisfaction. The definition of customer satisfaction has been widely debated as organizations increasingly attempt to measure it. Customer satisfaction can be experienced in variety of situations and connected to both goods and services. It is a highly personal assessment that is greatly affected by customer expectations. Satisfaction also is based on the customer’s experience of both contact with the organization (the “moment of truth “as it is called in business literature) and personal outcomes. Some researchers define satisfied customer within the private sector as “one who receives significant added value “to his/her bottom line—a definition that may apply just as well to public services (Mack Hanan and Peter Karp, Customer
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Satisfaction: How to Maximize, Measure, and Market Your Company’s “Ultimate Product” 2000). Customer satisfaction differs depending on the situation and the product or service. A customer may be satisfied with a product or service, an experience, a purchase decision, a salesperson, store, service provider, or an attribute or any of these (Rodrigo A. Padilla, “Literature Review on Consumer Satisfaction in Modern Marketing.”Seminar in Consumer Research, Faculty of Commerce and Administration, Concordia University, December 5, 2005). Customer satisfaction is a highly personal assessment that is greatly influenced by individual expectations. Some definitions are based on the observation that customer satisfaction or dissatisfaction results from either the confirmation or disconfirmation of individual expectations regarding a service or product. To avoid difficulties stemming from the kaleidoscope of customer expectations and differences, some experts urge companies to “concentrate on a goal that’s more closely linked to customer equity.”Instead of asking whether customers are satisfied, they encourage companies to determine how customers hold them accountable. However, understanding customer satisfaction will facilities companies or banks to maintain customer satisfaction to products or services and it has been building company or bank’s reputation and increasing customer’s believe and loyal.
Measuring the Customer Satisfaction.
Sureshchandar et al. (2002) pointed out that customer satisfaction should be viewed as a multi dimensional construct and measurement items should be generated with the same dimensions of service quality. Westbrook (2008) suggested that future researchers propose multi-item scale for measuring customer satisfaction, lowering measurement errors and improving the scale reliability at the same time.
The methods chosen for measuring customer satisfaction depend on customercharacteristics, time availability, costs, and the information an organization
Page | 36 hopes together. Many of the top performing companies identified by the National Performance Review (2006) used sophisticated market research techniques: “Feedback was obtained through customer focus groups, customer usage and attitude surveys, supplier and partner surveys, and detailed telephone, mail, and personal interviews. In one case, thousands of customer surveys were mailed out each week. Another company maintained a detailed database containing all pertinent facts about its customers’ requirements.” Common methods of gathering customer satisfaction information in the commercial world include 1-800 numbers, comment cards, telephone surveys, mail-based surveys, focus groups, group interviews, and direct contact between customers and employees. Recently, online surveys—through pop- up windows, links, or email invitations—have become popular with many companies. Each method or combination of methods has advantages and disadvantages. This section describes five strategies for customer satisfaction research an improvement. According to Kotler& Keller (2006) indicates customer satisfaction through customers by chooses providers on the basic dimensions and after receiving the service, they compare the perceived service with expected service. Indicated that if the perceived service falls below the expected service, customer loses interest in their provider. If the perceived service meets or exceeds their expectations, they are apt to use the provider again and if the perceived service is higher than expected service, they will be satisfaction.
2.6 Customer Satisfaction and Service Quality
The relationship between service quality and customer satisfaction has received considerable academic attention in the past few years. . Many researchers have operational zed customer satisfaction by using a single term scale and many others have used multiple item scales. Service quality and customer satisfaction has been investigated, and results have shown that the two constructs are indeed independent, but are closely related, implying that an increase in one is likely to lead
Page | 37 to an increase in the other (Sureshchandar, Chandrasekharan and Anantharaman, 2002).
Customer satisfaction is a generally concept which stated customer’s evaluation of a product or service in term of whether that product or service has met their needs and expectations (Zeithaml&Bitner, 2003)
On the other hand, there are many other researchers who concluded that service quality is the antecedent to satisfaction (Ahmad and Kamal, 2002; Cronin and Taylor, 2003; Yavas et al., 2007). Using service quality as the antecedent to satisfaction is more logical. This is because satisfaction is an important goal to be achieved by bank marketers and if the banks want to increase satisfaction, they can do it through service quality (Goode et al., 200)
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CHAPTER III RESEARCH METHODOLOGY
3.1 Research Design Define the information needed: Need to know about the customer’s taste with the bank products, know about the relationship between VietcombankBanking product and customer, and know about the satisfactions of customer with Vietcombank product and service the customer to new products, from that this research may help Vietcombank to increase their sub brand share. Design the exploratory descriptive of the research: to explore or search through a problem or situation to provide insights and understanding. Specify the measurement and scaling procedures Construct and pretest a questionnaire or an appropriate form of data collection Specify the sampling process and sample size According to Bryman& Bell (2007), there are two types of research methods, which are qualitative method and quantitative method. Qualitative method is a naturalistic, interpretative approach concerned with understanding the meanings of certain observed phenomenon or action. It examines to analyze and interprets observations for the purpose of discovering underlying meanings and patterns of relationships in a manner of relationships in a meaner that does not involve mathematical models. Quantitative method uses numbers to prove or disprove a notion or hypothesis. The process of measurement is central to quantitative research because it provides the fundamental connection between empirical observation and mathematical expression of quantitative relationship. Quantitative research uses data that are structured in the form of numbers or that can be immediately transported into numbers (Ross, 2009)
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Time frame Activities Ferbuary March Chapter1 Submit Chapter1 and Discuss Chapter 2 Submit Chapter2 and Discuss Chapter3 Submit Chapter3 and Discuss Chapter4 Submit Chapter4 and Discuss Chapter 5 Submit Thesis
3.2 Research Method
Bryman& Bell (2007), there are two types of research methods, which are qualitative method, which are qualitative method and quantitative method.
Qualitative method is a naturalistic, interpretative approach concerned with understanding the meaning of certain observed phenomenon or action. It examines to analysis and interprets observation for the purpose of discovering underlying meaning and patterns of relationship in a manner that does not involve mathematical models.
Quantitative method uses numbers to prove or disprove a notion or hypothesis. The process of measurement is central to quantitative research because it provides the fundamental connection between empirical observation and mathematical expression of quantitative relationship. Quantitative research uses data that are structured in the form of numbers or that can be immediately transported into numbers (Ross, 2009).
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According to research objective in this research which is to indicate the analysis of correlation analysis between service quality and customer satisfaction, the researcher would like to use Qquantitative Rresearch Method. Quantitative Method is used because the objective of this research is to develop and employ mathematical models, theories and/or hypotheses pertaining to phenomena.
Using Quantitative Research Method, the data can be easily converted into number and analyze through mathematical expression. This research explains an effect of bankservice quality to customer satisfaction. Official research would like to use the quantitative method. This method is used to analyze SERVQUAL dimensions through questionnaires.
In order to prove the hypothesis, the method used is regression analysis. The hypotheses will be tested using SPSS application software which will make the process of calculation and testing much faster and easier.
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3.3. Research Framework
Statement of Problem
Literature Study
Questionnaire (Pre-
Validity Test NO
Valid?
YES Reliability Test NO
Reliable?
YES Final Questionnaire
Statistical Technique
Hypothesis Test
Conclusion
Figure 3.1: Research Framework
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Source: Self – constructed. This study is researched through 2 steps, the first step is a state the preliminary research and second step is states the official research. (Figure 3.1)
3.4. Research Instruments
In general term, survey can be defined as structured questionnaire given to a sample of population and designed to elicit specific information from respondents (Schiffman&Kanuk, 2007). Survey consists of telephone interview, personal interview, self- completion survey, mail interview, and also electric interview (Malhotra& Peterson, 2002)
Survey, it’s been understood that it can only exist through questionnaire, the primary data collection instrument is the questionnaire, which can be sent through email, interview or telephone to selected respondents for self-administration. The questionnaire itself can be disguised or undisguised as to its true purpose. Question can be open – ended (requiring answers in the respondent’s own word) or close – ended (the respondents merely checks the appropriate answers from the list of options) (Schiffman&Kanuk, 2007).
The survey questionnaire in this research measured five dimensions of bank service quality and its effect on customer satisfaction which are tangible, assurance, reliability, empathy, and responsiveness.
This research is using Likert Scale. The Likert Scale is the most popular form of attitudes scale because it is easy for researcher to prepare and interpret, and it also simple for customer answer. The respondents only need to check and write the number corresponding to their level below.
Likert Scale is a measurement scale with five response categories ranging from “strongly agree” to “strongly disagree” which requires the respondents to indicate a
Page | 43 degree of agreement or disagreement with each of series of statement related to the stimulus object (Malhotra& Peterson, 2002).
1 = Strongly Disagree
2 = Disagree
3 = Neither Agree nor Disagree
4 = Agree
5 = Strongly Agree
Figure 3.2: Likert Scale Source: Consumer Behavior (Schiffman&Kanuk, 2007)
3.5. The basic elements to measure bank service Quality
3.5.1. Descriptive respondents such as:
1. Gender 2. Age 3. Status 4. The period for using BANK SERVICE Card 5. Salary
3.5.2 Sample Size
The numbers of population has designed by the researcher stay in front Vietcombank banking Ha Noi Sub Branch and counts the amount of the average customer come and go per day together with the data from Vietcombank banking. So the researcher
Page | 44 will take 100 populations to analysis. And there is usually 1%, 5% or 10% margin in this kind of research. So the researcher prefers to choose 10% margin in this research. Thus the formula will apply this study by Solving.
n = 푁 1+푁푒2 Where: n = sample size N = population size e = tolerable error Apply this formula, the real population will be:
n= ( ) = 50 100 1+100 10% 2 So the acceptable sample size for this thesis research is 50 respondents
3.5.3 Validity Test
Validity construction is very important to get the testing validity, by using the Product Moment Correlation Coefficient. The formula were used in testing the valid of the questionnaire in which it construct based on three problems rised in order to find the valid r invalid questions. According to R. Cooper Donald & Schindler Pamela, validity is to extend which measures what we actually wish to measure (business research method, 2006) Validity in a research is a necessary to have proved the correctness of the research was conducted. A research cannot be continued if data is not valid. The coefficient of correlation of Pearson Product Moment can be calculated based on the actual values of X and Y. the formula is:
. = 푛 푛 [ . 푛 ∑( 푋푖푌푖 −)∑]푖=1 .푋푖 ∑푖=1 푌푖 ( ) 푟 푛 2 푛 2 푛 2 푛 2 � 푛 ∑푖=1 푋푖 − ∑푖=1 푋푖 �푛 ∑푖=1 푌푖 − ∑푖=1 푌푖 �
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Where: n = the number of paired observation = The X variable summed
∑ 푋= The Y variable summed ∑ 푌 = the X variable squared and the squared summed ( 2) ∑ 푋 = The X variable summed and the sum squares 2 ∑ 푋=The Y variable squared and the squares summed 2 ∑ 푌 = The sum of the variable X and Y Each∑ 푋푌 item in the questionnaire will be valid if p-value 3.5.4 Reliability Test Reliability is not as valuable as validity, but it is much easier to access. It is concerned with estimates of the degree to which a measurement is free of unstable error (Cooper, Donald and Schindler, Pamela S, 2006,). For this study, the researcher using Cronbach’s Alpha to determine the reliability, the formula as follows: = 1 1 2 푁 ∑ 훼 푖푡푒푚 훼 � � � − 2 � 푁 − 훼 푡표푡푎푙 Where: Page | 46 α=Reliability of Items k=Items α2t=Total of variants total of variants ∑a2i=Variants Item 3.5.5 Instrument Distribution Cooper and Schinder (2006) defined sample as a group of cases, participant, events, records constituting as portion of the target population, carefully selected to represent the population. This study is customers who used the bank service quality of bank Vietcombank as population as the reason of: 1. Time limitation of doing survey 2. Lower cost 3. Accuracy of results 4. Good position The researcher stayed in front of Vietcombank Banking which is near from my home, Vietcombank Banking and other sub brand to deliver the questionnaire. The researcher planed to give questionnaire 110 people and split to deliver it to two periods. The first period, the researcher plan to deliver the questionnaire to 30 people to check out the question is valid and reliable, after that the research will design again the questionnaire and deliver to 50 left people on plan. The researcher will analyze this topic by the answer of 50 people with the entire question are valid. Page | 47 3.6. Data result of Validity and Reliability Test 3.6.1 Validity test In this research, the researcher come and waits in front of bank Vietcombank Sub Branch and counts the amount of all the bank customers who came to the bank from the morning until 5p.m ( the bank is close at 5p.m everyday). The average of customers come and go is around 100 people per day (the researcher stand in front of bank already 3 days). So the research will take 50 populations to investigate and the margin of error for each research can be different from others. There are usually 0.01 or 0.05 (1% or 5%) in this kind of research. Because there are 53 questions on questionnaire table which is the researcher would like to ask the bank customer, that is a big number and of course there are some questions not exactly focus to the research result. So the researcher would like to take 30 first customers spread the questionnaire to check out which question is not valid. In this test, the researcher also used SPSS program to check out the validity for each question on questionnaire table. The program will firstly count the Mean of each answer question and then check the correlation of its mean with each question on part. If the significant of each question is less than 0.01 so the question will be valid. If the significant of the question is bigger than 0.01, the question is not valid and the researcher will delete it from the questionnaire. The result will show as below: 3.6.2 Reliability test Nunn ally recommended in 1967 that “the minimal acceptable for preliminary research should be range from 0.6 and above 0.6”, Armstrong and Foley (2003) suggested that “the range from 0.8 to 1 Cronbach’s alpha is strongly reliability the scale”. So in this research, the researcher would like to choose 0.7 Cronbach’s alpha is acceptable Page | 48 If the Cronbach’s alpha is more than 0.7 means that the data taking from questionnaire is real and the researcher can use this. So in this table, the Cronbach’s alpha is 0.850 > 0.7, it means that the data is valid. 3.7. Statistical Technique This research will be use SPSS program to analysis the data. This application we used to find out R2 and its significance effect level. In this research, the researcher use the multiple linear regressions model which allows us to build a model with several independent variables (Render et al, 2006) Here is the Multiple Linear Regressions Model that is used to identify the influence of independent variables towards dependent variables: Y = β0 + β1X1 + β2X2 + β3X3 + β4X4 + β5X5 + e Where: Y: dependent variable (Customer Satisfaction) X: independent variable(Tangibles, Reliability, Assurance, Responsiveness, Empathy) β0: intercept (Value of Y when X = 0) β1,2,3,4,5: coefficient of independent value e: random error Source: quantitative analysis for management, Barry Render, Ralph M. Stair, JR, and Michael E. Hanna, page 127 Page | 49 3.8. Hypothesis Test 3.8.1. F – test F – Test is used to test the significance of the multiple regressions model. It is to see whether the set of independent variables in a multiple regression model can influence dependent variable collectivity (Business Statistic, 2004, p. 146). In order to accept or reject hypothesis, the significant F is less than α (Alpha). In here, the researcher decide to choose α = 0.05. It means that simultaneously all independent variables influence significantly toward dependent variables. In the opposite, if the significant F is more than α, thus Ho is accepted, means that simultaneously all independent variables have no significant influence toward dependent variables. Ho: β1 = β2 = β3 = β4 = β5 = 0, if sig. F > 0.05, accept Ho F – Test can be test by using the ANOVA table, the formula of F test is: ( ) F = ( ) 푆푆푅 푛−푘−1 푆푆퐸 푘 Where: SSR: regression sum of squares SSE: error of sum squares k: the number of independent variable in the regression model. 3.8.2. T – Test The T – Test is used to see the influence of each independent variable in multiple regression models toward the independent variable use T – Test (Business Statistic, 2004, p.148) by comparing the value of significant T (sign.t) each independent variable with significant standard α = 0.05. Ho: β1 = 0, H1 # 0, F< 0.05, accept H1. The Page | 50 strength of the relationship between two numerical variables was measured using the correlation coefficient (r), the test for the existence of correlation is using T - Test T-Test for population slope β1 Where: –β = b1: Sample Slope b1 1 푇 Sb1 β1: Slope of Population Sb1: Standard error of the Slope Page | 51 CHAPTER IV ANALYSIS OF DATA AND INTERPRETATION OF RESULTS 4.1 Respondent’s Profile 4.1.1 Gender The researcher stays in front of Vietcombank banking, banker and around my friends to deliver the questionnaire. The questionnaire is only given to the one who is using Vietcombank banking service. And there are 28 Males (56%) and 22 females (44%) are respondents for this questionnaire. Actually total Males respondents are bigger than Females, because they have to work for their family, so the business will be more active than Females. This gender description is presented as below: Gender Number Percentage Males 28 56% Females 22 44% Page | 52 Chart Title Males Females 44% 56% Figure 4.1: Gender of Respondent’s Profile Source: questionnaire 4.1.2 Age In this research, according to the data collected from bank customers who used bank service, there is nobody with the age is more than 60 are using Vietcombank banking service. Most of them are from 16 to 25 (30 respondents), they almost are in Vietnamese. The reason is the bank sub branch is bigger and good in Vietnam, so they trust this bank. The range from 26-45 has only 11 respondents, and form 46-60 got 9 respondents. They are workers, working around Ha Noi. Some of them don’t work. The following is the description: Customer Age Number Percentage 16 – 25 30 60% 26 – 45 11 22% 46 – 60 9 18% More than 60 0 0% Page | 53 Age 16 - 25 26 - 45 46 - 60 More than 60 0% 18% 22% 60% Figure 4.2: Age of Respondent’s Profile Source: Self – Constructed 4.1.3 The period of use This part is research about how long the customers are using bank service of Vietcombank banking. This part is very important information for Vietcombank banking because they can measure the customer loyalty. So after this research, the bank can make a policies and strategies to motivate and maintain to customer. Based on the respondent data, the mostly period of use from 1 – 3 years (26 respondents), they are student in Vietnam and get far from home. At this time, the students must be stay in rent house to follow study schedule. The range from 3-5 year only has 13 respondents because this time student are already done their graduated period, it means that they got job and maybe because some reason, they can change the bank to get easy on business. The following is the period of used description: Page | 54 Customer’s period of used Number Percentage 0 – 1 year 9 19% 1 – 3 years 26 52% 3 – 5 years 13 25% 5- 7 years 2 4% Period Of Used 0 - 1 year 1 - 3 years 3 - 5 years 5 - 7 years 4% 19% 25% 52% Figure 4.3: Period of Used of Respondent’s Profile Source: Self – constructed 4.1.4 Status This part also is very important information for Vietcombank banking because this part is research about the customer potential. According to the research data, the bank can see that most of their customers in this time are students. There are 26 students per 50 respondents who have been using bank service of Vietcomban kbanking. This status description is presented as below: Page | 55 Customer’s Status Number Percentage Ordinary people 6 12% Students 26 51% Employees 15 29% Professionals 1 3% Business people 2 5% Status Ordinary people Employees Students Professionals Business people 3% 5% 12% 29% 51% Figure 4.4: Status of Respondent’s profile Source: Self – constructed Page | 56 4.1.5 Salary Because all of customers who have been using bank service of Vietcombank banking, they all have salary, even students. Although most of students, they are still have to go to university to learn, so almost are not have job yet, then their salary in this part will come from their family (per month/Vietnam dong). This salary description is presented as below: Customer’s salary Number Percentage 1 – 3 millions 35 71% 3 – 5 millions 11 21% 5 – 7 millions 0 0% 7 – 10 millions 1 3% More than 10 millions 3 5% Page | 57 Chart Title 1 - 3 millions 3 - 5 millions 5 - 7 millions 7 - 10 millions more than 10 millions 3% 0% 5% 21% 71% Figure 4.5: Salary of Respondent’s Profile Source: Self – constructed 4.2. Data collected Based on the new questionnaire and Likert Scale (1-5), the researcher has collected all the answers of respondents such as: 1 2 3 4 5 243 284 159 489 413 Page | 58 Answer Collected Data 1 2 3 4 5 7% 13% 33% 20% 27% Figure 4.6: Answer Collected Data As we can see that the answer 4 (Agree) and 5 (Strongly Agree) is bigger than the others with 60%, answer 3 (Neither Agree or Disagree) is 20%, and the answer which is present for 1 (Strongly Disagree) and 2 (Disagree) is only 20%. Figure 4.6 already show that there are 60% (33% of respondent choose 4 for the answer and 27% choose 5 for the answer), 20% (7% of respondents choose 1, 13% choose 2 for their answer) and 20% of respondent choose 3 for their answer, so it means that the customers are quite satisfy with the entire bank service. 4.3. Statistic Descriptive Research Validity test Tangibles: Table 4.1 Validity test of Tangibles Page | 59 Tangible Correlation Significant Significant Interpretation between Var tailed number and TG Var1 0.630 0.000 0.01 Valid Var2 0.497 0.005 0.01 Valid Var3 0.645 0.000 0.01 Valid Var4 0.597 0.000 0.01 Valid Var5 0.676 0.000 0.01 Valid Var6 0.615 0.000 0.01 Valid Var7 0.499 0.005 0.01 Valid Var8 0.589 0.001 0.01 Valid Var9 0.598 0.000 0.01 Valid Var10 0.664 0.000 0.01 Valid Var11 0.609 0.000 0.01 Valid Var12 o.549 0.002 0.01 Valid Source: Self - constructed Reliability Table 4.2 Validity test of Reliability Reliability Correlation Significant Significant Interpretation between tailed number Varand RB Var13 0.694 0.000 0.01 Valid Var 14 0.465 0.010 0.01 Valid Var15 0.456 0.011 0.01 #Not Valid# Var16 0.694 0.000 0.01 Valid Var17 0.635 0.000 0.01 Valid Page | 60 Var18 0.616 0.000 0.01 Valid Var19 0.563 0.001 0.01 Valid Var20 0.454 0.012 0.01 #Not Valid# Var21 0.644 0.000 0.01 Valid Var22 0.665 0.000 0.01 Valid Var23 0.496 0.005 0.01 Valid Source: Self - constructed Responsiveness Table 4.3 Validity test of Responsiveness Responsiveness Correlation Significant Significant Interpretation between Var tailed number and RS Var24 0.616 0.000 0.01 Valid Var25 0.758 0.000 0.01 Valid Var26 0.622 0.000 0.01 Valid Var27 0.790 0.000 0.01 Valid Var28 0.744 0.000 0.01 Valid Var29 0.736 0.000 0.01 Valid Source: Self - constructed Assurance Table 4.4 Validity test of Assurance Assurance Correlation Significant Significant Interpretation between Var tailed number and AS Var30 0.668 0.000 0.01 Valid Page | 61 Var 31 0.706 0.000 0.01 Valid Var32 0.710 0.000 0.01 Valid Var33 0.691 0.000 0.01 Valid Var34 0.587 0.001 0.01 Valid Var35 0.637 0.000 0.01 Valid Var36 0.644 0.000 0.01 Valid Var37 0.755 0.000 0.01 Valid Source: Self - constructed Empathy Table 4.5 Validity test of Empathy Empathy Correlation Significant Significant Interpretation between Var tailed number and EP Var38 0.622 0.000 0.01 Valid Var39 0.648 0.000 0.01 Valid Var40 0.705 0.000 0.01 Valid Var41 0.662 0.000 0.01 Valid Var42 0.632 0.000 0.01 Valid Var43 0.610 0.000 0.01 Valid Source: Self - constructed Customer Satisfaction Table 4.6 Validity test of Customer Satisfaction Customer Correlation Significant Significant Interpretation Page | 62 Satisfaction between Var tailed number and CS Var44 0.745 0.000 0.01 Valid Var45 0.497 0.000 0.01 Valid Var46 0.627 0.000 0.01 Valid Var47 0.615 0.000 0.01 Valid Var48 0.325 0.057 0.01 #Not Valid# Var49 0.637 0.000 0.01 Valid Var50 0.695 0.000 0.01 Valid Var51 0.538 0.002 0.01 Valid Source: Self - constructed The result has showed that there are 3 questions are Not Valid so the researcher must be deleting those 3 questions on questionnaire. After doing the Reliability test, there are 51 valid questions. But the Validity test in this part showed that must be delete 3 more questions such as variable 15, 20,and 48. So, there are only 50 valid questions on the questionnaire. Reliability test In here, the result of first analysis such as: The researcher got the Cronbach’s alpha for all Tangibles items as blow: Reliability Statistics Cronbach's Alpha N of Items ,850 13 Page | 63 The researcher also got table of item total statistic for all Tangibles as below: Table 4.7 Reliability test of Tangibles Tangible Corrected Significant Interpretation Item-Total Correlation Var1 ,536 0.3 Valid Var2 ,401 0.3 Valid Var3 ,583 0.3 Valid Var4 ,496 0.3 Valid Var5 ,594 0.3 Valid Var6 ,520 0.3 Valid Var7 ,409 0.3 Valid Var8 ,494 0.3 Valid Var9 ,498 0.3 Valid Var10 ,585 0.3 Valid Var11 ,514 0.3 Valid Var12 ,521 0.3 Valid Var13 ,447 0.3 Valid Source: Self - constructed In this table (the result take from SPSS program version 16), the researcher only focus on corrected item – total correlation column. If the number of the corrected item – total correlation of the variable is bigger than 0.3, it means that we can keep this question. In this Tangible table, the entire variable corrected item – total correlation are bigger than 0.3, so we can keep the entire question in tangible part. The second variable in this research is Reliability. Using SPSS program, there is the Cronbach’s alpha for all Reliability items as blow: Page | 64 Reliability Statistics Cronbach's Alpha N of Items ,812 12 The Cronbach’s Alpha also is more than 0.7 Table 4.8 Reliability test of Reliability Reliability Corrected Significant Interpretation Item-Total Correlation Var14 ,421 0.3 Valid Var15 ,626 0.3 Valid Var16 ,369 0.3 Valid Var17 ,336 0.3 Valid Var18 ,583 0.3 Valid Var19 ,509 0.3 Valid Var20 ,493 0.3 Valid Var21 ,463 0.3 Valid Var22 ,276 0.3 #Not Valid# Var23 ,567 0.3 Valid Var24 ,537 0.3 Valid Var25 ,377 0.3 Valid Source: Self - constrcted In here, as we can see that question number 22 have total correlation is less than 0.3, so the researcher will delete question 22 from beginning questionnaire. Page | 65 This part is explanation for Responsiveness: Reliability Statistics Cronbach's Alpha N of Items ,800 6 Table 4.9 Reliability test of Responsiveness Responsiveness Corrected Significant Interpretation Item-Total Correlation Var26 ,432 0.3 Valid Var27 ,647 0.3 Valid Var28 ,438 0.3 Valid Var29 ,664 0.3 Valid Var30 ,621 0.3 Valid Var31 ,571 0.3 Valid Source: Self - constructed Based on the information from two tables, the researcher can keep all questions in Responsiveness part. Assurance: Reliability Statistics Cronbach's Alpha N of Items Page | 66 Reliability Statistics Cronbach's Alpha N of Items ,825 8 The Cronbach’s Alpha also is bigger than fixed number (0.7) Table 4.10 Reliability test of Assurance Assurance Corrected Significant Interpretation Item-Total Correlation Var32 ,569 0.3 Valid Var33 ,601 0.3 Valid Var34 ,578 0.3 Valid Var35 ,590 0.3 Valid Var36 ,432 0.3 Valid Var37 ,490 0.3 Valid Var38 ,509 0.3 Valid Var39 ,653 0.3 Valid Source: Self - constrcted According to two table’s information, there is no problem with the question in this part. Empathy: Page | 67 Reliability Statistics Cronbach's Alpha N of Items ,721 6 Table 4.11 Reliability test of Empathy Empathy Corrected Significant Interpretation Item-Total Correlation Var40 ,429 0.3 Valid Var41 ,470 0.3 Valid Var42 ,531 0.3 Valid Var43 ,451 0.3 Valid Var44 ,442 0.3 Valid Var45 ,406 0.3 Valid Source: Self - constrcted Customer Satisfaction: Reliability Statistics Cronbach's Alpha N of Items ,728 8 Table 4.12 Reliability test of Customer Satisfaction Customer Corrected Significant Interpretation Page | 68 Satisfaction Item-Total Correlation Var46 ,627 0.3 Valid Var47 ,309 0.3 Valid Var48 ,469 0.3 Valid Var49 ,438 0.3 Valid Var50 ,176 0.3 #Not Valid# Var51 ,458 0.3 Valid Var52 ,501 0.3 Valid Var53 ,390 0.3 Valid Source: Self - constructed As we can see that number of variable 50 have less than 0.3, so the researcher will delete question number 50 from the beginning questionnaire. After using SPSS program version 16, the researcher can recognize that there are two invalid questions such as variable 22 and 50. So the new questionnaire will deliver to respondent with 48 valid questions. The researcher made the new questionnaire and spread it to 50 bank’s customers who are using bank service from Vietcombankbanking Descriptive Statistics Std. Mean Deviation N Page | 69 X1 3,3538 ,66771 50 X2 3,3909 ,69167 50 X3 3,3633 ,94021 50 X4 3,2325 ,83986 50 X5 3,4133 ,91116 50 Y 3,3543 ,87600 50 From the Descriptive Statistics above, information about the independent and dependent variables from 50 data derived as followings: a. Customer satisfaction (Y), as dependent variable has mean of 3, 3543. It tells the average of respondent’s answers is agree as normal and the standard deviation of 0.87600 which tells there is variation of answers. b. Tangible (X1), as independent variable has mean of 3, 3583. It tells the average of respondent’s answers is strongly agree and the standard deviation of 0.66771 which tells there is variation of answers. c. Reliability (X2), as independent variable has mean of 3,3909. It tells the average of respondent’s answers is strongly agree and the standard deviation of 0.69167 which tells there is variation of answers. d. Responsiveness (X3), as independent variable has mean of 3,3633. It tells the average of respondent’s answers is agree as normal and the standard deviation of 0.94021 which tells there is variation of answers. e. Assurance (X4), as independent variable has mean of 3,2325. It tells the average of respondent’s answers is agree as normal and the standard deviation of 0.83986 which tells there is variation of answers. f. Empathy (X5), as independent variable has mean of 3,4133. It tells the average of respondent’s answers is agree as normal and the standard deviation of 0.91116 which tells there is variation of answers. Page | 70 4.4 Regression Model Testing Result 4.4.1 Coefficient of Multiple Determinations Dealing with multiple regression, is going to be better to use adjusted R2 to reflect both the number of independent variables in the model. In multiple regressions, the coefficient of multiple determinations (R2) represents the proportion of the variation in dependent variable (Y) that is explained by the set of independent variables (Mark et al, 2006) a. Predictors: (Constant), X1, X2, X3, X4, and X5 b. Dependent Variable: Y From the model summary above, R2 is often interpreted as the proportion of response variation explained by the regressions in the model. Thus R2 of the model is 0.483 (48.3%) which is an interior value. It means that 48,3% of the variation in customer satisfaction can be explained by the explanatory variable. 4.4.2 F – test F – Test is used to test the significance of the multiple regressions model. And it can be find out whether the set of regression model is valid or invalid. When the result in the range of tolerance, significance result is below 0.05, it means a set of independent Page | 71 variables in the multiple regression models can influence the dependent variable collectively and opposite. ANOVAb Sum of Model Squares df Mean Square F Sig. 1 Regression 3.139 5 .628 .802 .005a Residual 34.462 44 .783 Total 37.602 49 a. Predictors: (Constant), X5, X4, X3, X1, X2 b. Dependent Variable: Y The ANOVA table above shown F value of 0.802 with its significant of 0.005 (lower than 0.05). It means that the independent variables influence the dependent variable significantly in the regression model, so all the variables can influence the dependent variable. 4.4.3. T – test The researcher has done with F- test in which to find out the significant of all the independent variables to dependent variable collectively with the result of significance or positively influential for the independent variables toward dependent variable. In the next test, the researcher will use T – test in order to identify the significance of separate independent variables toward dependent variable in the multiple linear regression models. The level of significant is the same with F – test (0.05), but in this test, the researcher will use each independent variable to compare with dependent variable. Page | 72 Coefficientsa From the table above, we have multiple linear regression equation blows: Y = 3.185Y + 0.009X1 + 0.274X2 + 0.205X3 + 0.109X4 + 0.73X5 Where: Y = Customer Satisfaction, X3 = Responsiveness, X1 = Tangibles, X4 = Assurance, X2 = Reliability, X5 = Empathy, Coefficient Regression (β) a. Constant value is 3.185. it means that if Tangibles (X1), Reliability (X2), Responsiveness (X3), Assurance (X4) and Empathy (X5) considered being zero, the amount of customer satisfaction at Vietcombank banking is 3.185 Page | 73 b. The coefficient regression of Tangibles (X1) is 0.009. it means that every 100% improvement in variable of Tangibles (X1) will increase customer satisfaction for 0.9% c. The coefficient regression of Reliability (X2) is 0.274. it means that every 100% improvement in variable of Reliability (X2) will increase customer satisfaction for 27.4% d. The coefficient regression of Responsiveness (X3) is 0.205. it means that every 100% improvement in variable of Responsiveness (X3) will increase customer satisfaction for 20.5% e. The coefficient regression of Assurance (X4) is 0.109. it means that every 100% improvement in variable of Assurance (X4) will increase customer satisfaction for 10.9% f. The coefficient regression of Empathy (X5) is 0.073. it means that every 100% improvement in variable of Empathy (X5) will increase customer satisfaction for 7.3% The Beta result found that there are any differences on the direction changes of independent variables toward dependent variable. All the dimensions have positive direction toward Customer Satisfaction. It can be seen that two of the independent have significance value below 0.05 like the T – test of Tangibles has t value of 0.038 with significance of 0.850 and Assurance has t value of 0.017 with significance of 0.945. And then the other three independent variables have significance value more than 0.05 such as T – test value of Reliability 0.274, value of Responsiveness 0.205 and value of Empathy 0.73. Based on the SPSS result, the researcher can accept about all five hypotheses of Tangibles, Reliability, Responsiveness, Assurance and Empathy, or H1, H2, H3, H4, H5 are accepted. So it means that all the dimensions have significance effect to Customer Satisfaction in Vietcombank banking. Page | 74 CHAPTER V CONCLUSION AND RECOMMENDATION 5.1 Conclusion Based on the discussion and analysis in the preview part, there are several points of conclusion can be generated as follow: The researcher has applied the theory of service quality into bank service in Vietcombank banking. The five dimensions of SERVQUAL by Parasuraman, Berry and Zeithaml (2001) which are Tangible, Reliability, Responsiveness, Assurance and Empathy. The result shows that the customer is agreeing as normal with the bank service quality and all the variables can influence the dependent variable. The result of research shows that Tangible, Reliability, Responsiveness, Assurance and Empathy have significance effect to Customer Satisfaction through F – test (shown F value of 0.802 with its significant of 0.005). After we saw the result of F – test, T – test also show that all the Service Quality dimensions have effect to Customer Satisfaction by the number such are Tangible (0.023), Reliability (0.179), Responsiveness (0.256), Assurance (0.014) and Empathy (0.347). The most effect of Customer satisfaction is empathy. 5.2 Recommendation According to the result of this research which is the researcher has already analysis, the researcher would like to give some recommendations for the banking service, especially for management to improve the service quality. Page | 75 The Vietcombank banking should improve all the variables which are unsatisfying the customers by their answers in order to improve their service quality. Because through the questionnaire, we can see that what things still make the customer are not satisfy with the bank service, or which part that the bank staff did not good. Through the answers on questionnaire of the bank’s customers, the manager of bank has to recognize their problem in service and make a plan to satisfy their customers in which part that the customers are still not satisfaction. Based on the result of multiple regression analysis, we have found that those factors effect to customer satisfaction so that factors are very important for customers. So the bankservice has to pay more attention to those factors to enhance its competition and diversified offering to ensure their customer retention. Finally, because there are still higher percent of customer who doesn’t satisfy with this service, so they need marketing intelligence, PR and more information. If automated service quality converges and becomes a standard or non – differentiated attitude among all bank. It will be easy for customers to compare and switch from one bank to other. Page | 76 REFERENCES A. 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Malhotra, Questionnaire Design and Scale Development, 2006, Retreived 09th February, 2012 http://www.thesportjournal.org/article/review-service-quality- corporate-and-recreational-sportfitness-programs Ramaswamy,(1996),A Review of Service Quality in Corporate and Recreational Sport/Fitness Programs, Retreived25th January, 2012 http://www.aseanenvironment.info/Abstract/41015860.pdf Render et al, (2006), Application of Multivariate Statistical Methods to Water Quality Assessment of the Watercourses in Northwestern New Territories, Hong Kong,Retreived 25th January, 2012 Page | 81 http://csited.org/2007/72PadaCSITEd.pdf Shohail, E-banking and customer preferences in Malaysia: An empirical investigation, 2003, Retreived 12thFebruary, 2012 http://www.finweb.com/banking-credit/six-basic-atm-bank-card- functions.html Six BasicATMCardFunctions, Retreived 14th January, 2012 http://www.ehow.co.uk/way_5475547_slovins-formula-sampling- techniques.html Slovin, (1960), Slovin's Formula Sampling Techniques, Retreived14th January, 2012 http://www.tarupublications.com/journals/jios/full-text/JIOS-27-1- 2006/jios134.pdf Sureshchandar et al,. (2002), The relationship between service quality and customer satisfaction: the example of CJCU library, Retreived 22th January, 2012 http://www.academicjournals.org/AJBM/PDF/pdf2011/16Sept/Shaharudin%2 0et%20al.pdf Walsh H.,(1994), The Relationship betweenProduct Quality and Purchase Intention: The case of Malaysia’s national motorcycle/scooter manufacturer,Retreived 22th January, 2012 http://www.scribd.com/doc/65451923/63206529-Project-Report-on-Plastic- Money-in-India-1 Winter Project Report SSCMR 2009-2011PLASTIC MONEY, Retreived02nd March, 2012 http://diendannganhang.com/forums/p/890/1828.aspx http://www.vietcombank.com.vn/En/annual%20report/2008/Vietcombank's%20profil e.pdf http://www.vietcombank.com.vn/en/About%20VCB.htm http://www.vietcombank.com.vn/en/content/about%20vcb/Milestones.htm http://www.vietnamonline.com/az/banking-system.html Page | 82 APPENDICES APPENDIX A Pre Test Questionnaire Questionnaire Dear Clients, I am Ronaldo, a student at President University majoring Banking and Finance. I am presently writing a thesis on “AN ANALYSIS OF THE BANK CUSTOMER SATISFACTION ABOUT THE BANK SERVICE QUALITY IN VIETCOMBANKBANKING”. In this regard, I solicit your help in filling out this questionnaire. Thank you for taking the time to complete this questionnaire. TRI DUC TAI ANH (RONALDO) • PERSONAL DATA : Name (optional):______ • Gender: a. Male b. Female • Status: a. Single b. Married • Occupancy: a. Students b. Employees c. Professionals d. Entrepreneur • Age: a. 16 – 25 b. 26 – 45 c. 46 – 60 d. > 60 • The period to use of VIETCOMBANK service: • < 1 year b. > 1 – 3years c. 3 – 5years d. >5 – 7years Page | 83 • Expenses per month: a. 1- 3 milion b. > 3- 5 million c. > 5-7 million d. > 7-10 million e. > 10 milion B. QUESTIONS FOR BANK SERVICE QUALITY: Please check your response to each item. The scale is 1 until 5, that below: 1 = Strongly Disagree 2 = Disagree 3 = Neither Agree nor Disagree 4 = Agree 5= Strongly Agree NO QUESTIONS : 1 2 3 4 5 Tangible 1 The functions on the ATM, designed Mobile banking easy to use 2 The bank has wide trading network 3 Transaction location convenient for customers 4 The bank service has a user friendly system and easy to reach. 5 Good customer services (TV, table, newspapers, drink, etc) 6 Convenient parking 7 Bankers are friendly, polite and open to customers 8 Vietcombankbanking always advanced their technology to help customer facilitate transactions 9 The bank service is compatible with customer’s lifestyle. 10 Service of Vietcombankbanking is the best 11 Vietcombankbanking is the bigger bank in Vietnam 12 The information of bank is easy to remember 13 I like to use Vietcombankbanking Reliability 1 2 3 4 5 14 The bank transaction always ontime and it make a good thing on your business Page | 84 15 The level of securing the information of Customers who are having deposits in the bank. 16 Banker completes the task right ask the first time 17 Banker is always keeps promise with customers 18 The money taken from Vietcombankbank by using their credit card is not shriveled or counterfeit money like other banks. 19 The process is faster, so customer does not have to spend long time to wait. 20 Customers have sufficient bank service options. 21 The fees are reasonable. 22 The Vietcombankbanking provides its service at the same time it promises to do so. 23 Customer finds necessary for a guard to be present at bank Vietcombank. 24 The Credit Card of bank is risk free. 25 Transaction is always successful. Responsiveness 1 2 3 4 5 26 The time transaction is shortened and the transaction is performed exactly 27 Bankers are eager to catch up customers' needs 28 Bankers consult customers in detail, clearly, and completely 29 Bankers answer questions clearly and satisfy the customer 30 Bankers' capability of knowledge to answer customers' questions 31 When you have problem with the bank, but you are long way from bank, the bank will help you to fix it quickly. Assurance 1 2 3 4 5 32 Do you believe Vietcombankbanking 33 Documentation processes are clear and easily understood 34 Bankers provide appropriate feedbacks to customers' questions 35 Bankers always provide in-time, complete and exact information to customers 36 Customers are not scared of losing card when you are using credit card in ATM system of Page | 85 Vietcombankbanking 37 Customers believe that the bank service should improve the security concern the public by using the information in bank 38 Customers lose their money when the ATM system is error 39 Customers cannot receive their cash even the process in ATM system is already finished Empathy 1 2 3 4 5 40 Banker always cares about the needs of customers 41 The waiting time for the turn of the customer is shortened 42 You will contact with the bank whenever you have problem 43 The bank supports customer when they meet any trouble 44 The customer easily loans from bank 45 Procedures are conducted friendly to customer Customer Satisfaction 1 2 3 4 5 46 You are satisfied with products and services of the bank 47 You are satisfied the appearance of physical facilities, equipment, personnel, and communication material 48 You are satisfied with the convenience of bank service 49 You are satisfied the ability to perform promise service dependably and accurately. 50 You are satisfied the willingness to help customers and to provide prompt service. 51 You are satisfied the knowledge of employees and their ability to convey trust and confidence 52 You are satisfied the provision of caring, individualized attention to customers. 53 You satisfied with the bank service Thank you for helping me to fulfill this questionnaire. Have a nice day! Page | 86 APPENDIX B Raw Data Tangibles. Q 1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 X1 4 4 4 4 5 4 5 5 4 4 3 4 5 X2 2 2 1 1 2 1 2 2 1 1 1 5 5 X3 1 1 2 1 1 2 1 2 1 2 1 1 1 X4 3 4 3 5 1 4 3 4 5 2 4 5 2 X5 5 4 5 5 4 5 5 5 5 4 5 5 5 X6 4 5 4 2 5 4 4 1 1 2 5 2 4 X7 2 1 2 3 3 3 4 1 2 5 4 2 4 X8 3 2 4 4 5 2 5 4 5 4 5 2 1 X9 3 5 2 2 5 1 2 3 4 5 3 4 2 X10 1 5 5 5 2 4 4 4 4 2 1 4 4 X11 5 3 1 3 2 1 1 2 1 2 2 3 5 X12 2 2 3 4 2 4 5 2 2 4 5 1 5 X13 2 5 4 1 4 4 1 1 2 5 5 4 5 X14 1 4 2 5 4 1 5 2 5 2 5 2 4 X15 1 2 1 2 3 2 1 2 2 1 1 2 2 X16 5 1 4 5 1 3 1 5 5 4 3 4 3 X17 3 5 5 1 4 4 3 4 4 3 2 5 5 X18 2 1 3 5 2 4 4 4 2 1 5 4 5 X19 4 5 4 3 5 5 2 5 3 4 4 4 2 Page | 87 X20 1 4 4 3 2 2 4 3 5 3 4 2 5 X21 4 2 4 4 4 4 5 4 5 4 2 4 5 X22 5 5 4 5 3 4 5 4 4 5 5 5 4 X23 3 5 3 2 5 2 4 4 5 4 1 1 5 X24 4 5 2 5 5 4 2 2 5 4 3 5 4 X25 1 2 1 1 2 1 2 2 1 2 1 1 5 X26 4 1 3 4 5 4 5 4 4 1 4 2 1 X27 2 4 2 4 4 2 1 2 5 5 5 5 2 X28 2 2 5 1 5 1 5 1 5 5 5 5 2 X29 5 1 5 5 4 4 3 4 2 3 1 4 5 X30 3 5 3 4 4 2 2 3 1 5 4 1 2 X31 5 5 2 3 4 4 5 5 4 2 5 4 4 X32 2 1 4 1 1 5 5 4 5 4 4 5 5 X33 4 3 5 5 3 4 4 3 4 2 3 3 5 X34 4 4 4 4 2 4 1 1 2 4 1 4 2 X35 4 4 5 2 4 2 4 4 2 5 2 4 5 X36 3 2 2 3 5 2 5 4 3 2 5 1 5 X37 4 4 2 5 1 3 3 1 5 4 5 3 1 X38 4 5 5 3 5 3 5 2 2 3 3 3 4 X39 1 2 5 5 2 4 2 1 5 1 2 4 5 X40 3 1 5 5 4 4 4 4 2 5 4 5 5 X41 2 3 2 5 1 4 4 4 5 4 5 1 5 X42 5 4 3 4 5 5 4 3 4 5 2 5 2 Page | 88 X43 1 1 5 5 3 2 2 2 2 3 5 2 2 X44 4 3 4 4 4 4 5 4 4 4 5 4 5 X45 4 4 2 2 5 4 2 4 4 4 5 1 4 X46 3 3 4 5 2 3 4 2 4 2 3 5 4 X47 5 5 5 2 4 5 3 4 4 2 2 2 2 X48 4 5 4 1 4 4 4 3 2 5 5 5 4 X49 5 4 2 5 3 2 3 5 5 5 5 3 5 X50 5 4 3 5 5 4 2 4 5 1 5 5 1 X51 5 1 5 5 4 4 3 4 2 3 1 4 5 X52 3 5 3 4 4 2 2 3 1 5 4 1 2 X53 5 5 2 3 4 4 5 5 4 2 5 4 4 Reliability Q14 Q15 Q16 Q17 Q18 Q19 Q20 Q21 Q22 Q23 Q24 X1 5 5 4 5 5 5 4 4 4 4 5 X2 4 1 5 5 4 2 5 4 4 2 5 X3 4 1 4 1 2 3 3 3 2 5 2 X4 5 4 3 2 4 4 5 2 5 4 2 X5 2 3 1 5 2 2 5 1 4 5 2 X6 4 4 4 5 5 5 2 4 5 3 4 X7 1 2 4 3 1 3 2 1 2 1 4 X8 5 2 1 2 3 4 2 4 2 2 3 Page | 89 X9 1 1 2 5 4 1 4 4 4 5 1 X10 5 2 1 4 5 5 4 1 5 5 4 X11 4 4 4 5 2 2 3 2 2 5 2 X12 5 5 4 5 4 5 1 3 4 1 2 X13 3 4 3 5 5 1 4 4 4 3 4 X14 4 4 2 1 3 5 2 4 3 2 5 X15 3 4 4 5 4 4 5 5 1 5 4 X16 5 3 1 4 5 4 5 5 4 4 4 X17 5 4 1 1 2 1 2 2 3 4 2 X18 2 2 4 4 4 4 3 3 4 2 4 X19 5 4 5 5 1 4 3 4 2 5 5 X20 5 4 4 5 4 4 5 3 4 1 3 X21 1 2 2 2 5 4 4 1 4 3 5 X22 4 1 2 3 3 3 4 1 4 3 2 X23 5 5 1 4 5 2 5 4 4 4 4 X24 5 5 2 2 5 1 2 3 5 3 4 X25 5 4 5 5 4 5 4 4 5 5 3 X26 4 2 1 3 1 1 1 2 2 1 1 X27 4 2 4 4 2 4 5 2 4 2 2 X28 5 4 4 1 1 4 1 1 4 5 1 X29 4 2 5 5 4 1 5 2 2 5 4 X30 2 5 3 5 2 4 4 4 4 1 2 X31 5 5 4 3 5 5 5 5 5 5 5 Page | 90 X32 3 2 4 3 2 2 4 3 2 5 5 X33 5 4 4 4 4 4 5 4 1 5 5 X34 2 3 1 5 3 1 4 4 4 2 5 X35 5 5 5 4 5 4 4 5 3 4 5 X36 5 4 4 5 5 4 2 2 5 4 2 X37 4 3 3 1 2 5 4 4 4 5 4 X38 1 1 1 4 5 4 5 4 2 4 2 X39 4 4 5 4 4 2 1 2 1 2 5 X40 5 4 4 1 5 1 5 1 4 2 5 X41 3 1 2 5 4 4 3 4 4 3 2 X42 5 2 4 5 4 5 5 5 5 3 4 X43 2 1 2 1 1 3 2 1 2 1 3 X44 4 4 3 2 4 4 4 4 4 5 4 X45 4 4 5 5 3 5 3 1 4 2 2 X46 4 4 5 5 3 2 5 2 4 5 4 X47 5 1 5 5 2 5 5 4 2 5 4 X48 5 5 4 5 5 1 2 5 4 1 2 X49 3 4 5 1 3 4 5 4 4 4 1 X50 2 3 2 1 2 1 1 2 2 3 4 X51 4 5 4 4 5 2 2 5 4 1 2 X52 2 4 5 2 3 4 5 4 5 4 2 X53 3 3 2 3 2 1 1 2 4 2 1 Responsiveness Page | 91 Q25 Q26 Q27 Q28 Q29 Q30 X1 2 5 4 3 3 4 X2 1 2 4 3 4 5 X3 4 4 4 5 3 5 X4 1 1 3 2 1 1 X5 4 5 3 4 1 2 X6 4 1 2 5 4 5 X7 1 2 1 2 1 2 X8 2 4 4 4 4 4 X9 3 1 1 1 2 1 X10 4 3 4 5 2 2 X11 4 4 4 1 1 2 X12 5 3 1 5 2 5 X13 1 5 2 4 4 5 X14 4 5 3 1 5 5 X15 4 2 4 3 4 4 X16 5 4 5 5 4 5 X17 2 5 5 2 5 3 X18 4 1 2 4 3 5 X19 4 4 5 4 4 1 Page | 92 X20 2 5 3 3 4 1 X21 1 5 5 2 5 4 X22 3 5 5 1 2 3 X23 2 1 2 4 4 4 X24 4 5 2 1 1 2 X25 1 4 2 4 5 2 X26 1 1 2 2 1 1 X27 4 4 4 1 5 2 X28 5 5 3 2 4 4 X29 4 5 1 3 1 5 X30 5 5 4 4 5 4 X31 5 4 5 5 4 5 X32 5 4 5 5 3 5 X33 2 2 4 1 2 3 X34 4 5 5 4 5 5 X35 5 3 4 4 5 4 X36 4 4 2 4 4 3 X37 1 1 1 2 1 1 X38 5 5 4 1 4 4 X39 3 5 2 4 5 4 Page | 93 X40 4 3 5 5 2 1 X41 4 3 2 2 5 2 X42 4 4 4 5 2 1 X43 4 2 2 5 4 4 X44 2 4 4 1 4 4 X45 5 5 4 4 4 3 X46 1 1 2 1 2 1 X47 4 5 5 5 4 5 X48 5 3 5 5 5 4 X49 5 5 3 5 5 5 X50 5 5 5 4 3 4 X51 5 3 4 4 5 4 X52 4 4 2 4 4 3 X53 1 1 1 2 1 1 Assurance Page | 94 Q31 Q32 Q33 Q34 Q35 Q36 Q37 Q38 X1 3 4 3 3 4 4 1 1 X2 2 4 5 2 4 1 1 2 X3 4 1 4 1 1 4 1 4 X4 5 5 4 5 5 4 5 4 X5 1 2 1 1 2 1 2 1 X6 4 5 2 4 2 4 3 5 X7 5 3 5 5 5 5 5 5 X8 2 1 2 1 1 2 2 1 X9 2 2 3 2 2 4 4 5 X10 4 5 4 4 4 2 2 5 X11 5 5 4 4 5 4 4 4 X12 2 5 2 4 4 5 4 4 X13 4 1 2 5 2 1 2 5 X14 4 3 4 1 1 5 1 5 X15 3 2 5 4 4 3 4 5 Page | 95 X16 2 5 4 4 5 5 5 2 X17 1 1 2 1 2 1 1 2 X18 3 4 2 2 4 4 4 5 X19 5 5 4 2 5 3 1 4 X20 4 1 5 3 5 2 5 4 X21 3 2 4 4 5 1 2 3 X22 1 5 2 4 2 4 4 4 X23 4 5 5 5 2 1 1 2 X24 4 3 1 3 2 4 5 2 X25 1 2 3 4 4 4 1 1 X26 2 5 4 1 4 1 5 2 X27 1 4 5 5 3 2 4 4 X28 4 5 5 2 1 3 1 5 X29 4 1 4 5 4 4 3 4 X30 3 5 5 1 2 4 4 4 X31 2 1 3 5 2 5 3 4 X32 2 3 1 4 4 1 2 3 Page | 96 X33 1 5 4 4 5 4 5 5 X34 4 2 5 4 4 4 5 4 X35 5 4 4 5 2 4 4 3 X36 4 2 3 3 4 4 1 1 X37 2 5 1 4 2 2 3 1 X38 2 5 4 4 4 5 5 5 X39 3 2 5 1 5 5 4 4 X40 5 4 5 3 4 4 3 3 X41 1 2 1 1 2 1 1 1 X42 5 1 2 4 2 4 4 5 X43 2 5 4 5 2 5 4 4 X44 1 1 1 1 3 3 1 2 X45 4 5 2 5 3 5 2 4 X46 2 3 5 2 4 2 1 5 X47 4 4 5 4 4 4 4 3 X48 4 4 5 1 4 4 4 5 X49 4 2 3 5 5 4 4 5 Page | 97 X50 4 1 1 1 1 4 1 4 X51 2 5 1 4 2 2 3 1 X52 2 5 4 4 4 5 5 5 X53 3 2 5 1 5 5 4 4 Empathy Q39 Q40 Q41 Q42 Q43 Q44 X1 4 2 2 4 4 4 X2 4 5 1 5 5 3 X3 5 5 4 5 4 5 X4 4 1 2 1 1 4 X5 4 4 1 2 3 1 X6 2 5 5 1 4 2 X7 5 5 4 4 5 4 X8 4 2 5 4 5 5 X9 3 1 5 5 3 4 X10 5 4 2 4 4 4 Page | 98 X11 4 5 4 4 1 4 X12 5 4 5 5 5 4 X13 1 2 5 3 5 2 X14 5 4 5 5 4 5 X15 4 3 2 4 3 2 X16 5 4 4 4 4 4 X17 3 5 3 4 2 5 X18 4 5 4 2 4 4 X19 4 2 2 5 5 4 X20 3 2 4 4 1 2 X21 1 5 2 2 5 1 X22 4 5 5 5 4 4 X23 4 3 1 3 5 2 X24 1 5 3 4 2 4 X25 2 5 4 1 4 5 X26 1 4 5 5 1 4 X27 1 1 2 2 2 1 X28 1 2 1 1 2 2 X29 3 5 5 1 5 4 X30 2 4 3 5 4 5 Page | 99 X31 2 3 1 4 2 1 X32 1 5 4 1 1 5 X33 4 2 5 4 4 3 X34 5 4 4 5 5 5 X35 4 2 3 3 3 2 X36 2 5 4 4 4 4 X37 5 3 1 5 2 5 X38 5 4 5 2 4 5 X39 5 5 4 4 5 4 X40 1 2 1 1 4 4 X41 4 5 2 2 4 4 X42 4 4 3 4 2 2 X43 5 5 4 5 4 5 X44 5 4 5 5 4 5 X45 1 2 1 1 2 2 X46 4 1 1 1 4 1 X47 2 4 4 4 3 4 X48 5 3 4 5 5 5 X49 2 3 1 3 1 1 X50 5 2 2 4 4 4 Page | 100 X51 3 5 3 4 2 5 X52 4 5 4 2 4 4 X53 4 5 2 2 4 4 Customer Satisfaction Q45 Q46 Q47 Q48 Q49 Q50 Q51 X1 1 5 2 2 5 3 1 X2 2 4 4 3 5 2 5 X3 3 1 5 4 5 1 2 X4 4 3 4 2 2 4 4 X5 4 4 4 2 4 4 3 X6 5 3 4 3 2 4 4 X7 1 1 3 1 1 4 3 X8 4 5 5 4 4 1 2 X9 4 5 4 5 5 4 5 X10 4 4 3 4 4 4 4 X11 4 1 1 4 1 4 4 X12 1 2 4 1 4 1 1 X13 4 5 4 5 4 1 4 X14 5 3 1 5 2 4 5 X15 2 5 2 3 5 5 3 Page | 101 X16 5 2 1 3 1 2 5 X17 5 4 4 4 4 5 2 X18 4 5 5 2 2 5 4 X19 4 4 3 4 4 1 4 X20 5 2 2 4 4 1 4 X21 5 5 4 4 4 2 4 X22 4 2 4 4 4 5 3 X23 5 3 4 5 1 5 5 X24 3 5 2 4 4 1 4 X25 4 5 1 5 4 4 2 X26 4 2 4 2 2 5 1 X27 4 5 4 4 4 4 5 X28 2 5 3 4 2 2 5 X29 4 1 4 2 4 4 1 X30 4 4 2 5 5 4 4 X31 2 5 4 4 1 2 5 X32 1 5 2 4 5 1 5 X33 4 5 5 5 4 4 4 X34 5 2 1 3 5 2 5 X35 2 1 1 1 2 1 2 Page | 102 X36 2 4 4 1 4 5 4 X37 3 4 5 5 1 4 4 X38 5 2 2 5 2 4 4 X39 5 4 5 4 5 5 5 X40 4 5 5 5 4 5 5 X41 5 3 1 5 4 1 4 X42 5 5 3 5 3 5 5 X43 1 4 4 4 2 1 3 X44 4 1 3 4 1 3 1 X45 1 1 2 3 1 1 1 X46 5 4 5 5 4 2 5 X47 5 4 5 4 5 4 5 X48 2 5 5 3 5 5 3 X49 1 1 1 1 2 1 1 X50 1 1 2 1 1 1 2 X51 5 3 4 5 1 5 5 X52 3 5 2 4 4 1 4 X53 4 5 1 5 4 4 2 Page | 103 APPENDIX C Output from SPSS Program Tangibles Reliability Statistics Cronbach's Alpha N of Items ,850 13 Item-Total Statistics Cronbach's Scale Mean if Scale Variance if Corrected Item- Alpha if Item Item Deleted Item Deleted Total Correlation Deleted VAR00001 41,2000 58,097 ,536 ,837 VAR00002 42,0667 61,513 ,401 ,846 VAR00003 41,6667 60,575 ,583 ,837 VAR00004 42,1333 58,533 ,496 ,840 VAR00005 41,6667 57,471 ,594 ,834 VAR00006 42,0000 58,414 ,520 ,839 VAR00007 41,6000 61,834 ,409 ,845 VAR00008 41,9333 59,306 ,494 ,840 VAR00009 41,7667 58,599 ,498 ,840 VAR00010 41,9333 58,271 ,585 ,835 VAR00011 42,1667 58,626 ,514 ,839 VAR00012 41,4667 57,844 ,521 ,839 VAR00013 42,0000 59,862 ,447 ,843 Reliability Reliability Statistics Page | 104 Cronbach's Alpha N of Items ,812 12 Item-Total Statistics Cronbach's Scale Mean if Scale Variance if Corrected Item- Alpha if Item Item Deleted Item Deleted Total Correlation Deleted VAR00014 38,0333 48,930 ,421 ,802 VAR00015 37,7333 47,926 ,626 ,786 VAR00016 37,9667 50,309 ,369 ,807 VAR00017 37,7000 52,148 ,336 ,808 VAR00018 38,0000 45,655 ,583 ,786 VAR00019 37,8333 48,489 ,509 ,794 VAR00020 38,0000 48,828 ,493 ,796 VAR00021 37,7667 49,151 ,463 ,798 VAR00022 37,8667 51,292 ,276 ,816 VAR00023 37,8000 46,855 ,567 ,789 VAR00024 37,9333 47,857 ,537 ,792 VAR00025 38,0333 49,826 ,377 ,806 Responsiveness Reliability Statistics Cronbach's Alpha N of Items ,800 6 Item-Total Statistics Page | 105 Cronbach's Scale Mean if Scale Variance if Corrected Item- Alpha if Item Item Deleted Item Deleted Total Correlation Deleted VAR00026 17,2333 18,047 ,432 ,798 VAR00027 17,3333 17,333 ,647 ,752 VAR00028 17,1333 17,982 ,438 ,796 VAR00029 17,1333 15,913 ,664 ,743 VAR00030 17,1333 17,223 ,621 ,756 VAR00031 17,3667 16,102 ,571 ,767 Assurance: Reliability Statistics Cronbach's Alpha N of Items ,825 8 Item-Total Statistics Cronbach's Scale Mean if Scale Variance if Corrected Item- Alpha if Item Item Deleted Item Deleted Total Correlation Deleted VAR00032 24,2000 27,545 ,569 ,804 VAR00033 24,3333 26,437 ,601 ,798 VAR00034 24,2667 25,099 ,578 ,801 VAR00035 24,3000 27,045 ,590 ,800 VAR00036 24,4667 27,154 ,432 ,821 VAR00037 24,1333 26,326 ,490 ,813 VAR00038 24,3333 26,644 ,509 ,810 VAR00039 24,5667 25,220 ,653 ,790 Page | 106 Empathy: Reliability Statistics Cronbach's Alpha N of Items ,721 6 Item-Total Statistics Cronbach's Scale Mean if Scale Variance if Corrected Item- Alpha if Item Item Deleted Item Deleted Total Correlation Deleted VAR00040 16,5333 14,395 ,429 ,690 VAR00041 16,7667 14,254 ,470 ,679 VAR00042 16,8000 13,407 ,531 ,660 VAR00043 16,5333 13,499 ,451 ,685 VAR00044 16,2000 14,303 ,442 ,687 VAR00045 16,5000 14,397 ,406 ,697 Customer Satisfaction: Reliability Statistics Cronbach's Alpha N of Items ,728 8 Item-Total Statistics Cronbach's Scale Mean if Scale Variance if Corrected Item- Alpha if Item Item Deleted Item Deleted Total Correlation Deleted VAR00046 22,4667 18,326 ,627 ,659 Page | 107 VAR00047 22,7667 20,806 ,309 ,723 VAR00048 22,9333 19,444 ,469 ,691 VAR00049 22,5667 19,220 ,438 ,698 VAR00050 22,5667 22,599 ,176 ,743 VAR00051 22,7667 18,806 ,458 ,693 VAR00052 22,6000 18,869 ,501 ,684 VAR00053 22,6333 20,930 ,390 ,707 Regression Descriptive Statistics Mean Std. Deviation N Y 3.3543 .87600 50 X1 3.3538 .66771 50 X2 3.3909 .69167 50 X3 3.3633 .94021 50 X4 3.2325 .83986 50 X5 3.4133 .91116 50 Page | 108 Correlations Y X1 X2 X3 X4 X5 Pearson Correlation Y 1.000 -.003 .154 -.188 -.076 .011 X1 -.003 1.000 .062 .088 -.142 -.252 X2 .154 .062 1.000 .125 .159 -.238 X3 -.188 .088 .125 1.000 .014 .069 X4 -.076 -.142 .159 .014 1.000 -.033 X5 .011 -.252 -.238 .069 -.033 1.000 Sig. (1-tailed) Y . .491 .142 .095 .300 .469 X1 .491 . .334 .271 .162 .039 X2 .142 .334 . .194 .135 .048 X3 .095 .271 .194 . .463 .318 X4 .300 .162 .135 .463 . .411 X5 .469 .039 .048 .318 .411 . N Y 50 50 50 50 50 50 X1 50 50 50 50 50 50 X2 50 50 50 50 50 50 X3 50 50 50 50 50 50 X4 50 50 50 50 50 50 X5 50 50 50 50 50 50 Variables Entered/Removedb Variables Variables Model Entered Removed Method 1 X5, X4, X3, X1, . Enter X2a a. All requested variables entered. b. Dependent Variable: Y Model Summaryb Page | 109 Change Statistics Std. Error R Adjusted R of the R Square F Sig. F Model R Square Square Estimate Change Change df1 df2 Change 1 .689a .483 .421 3.88501 .083 .802 5 44 .555 a. Predictors: (Constant), X5, X4, X3, X1, X2 b. Dependent Variable: Y ANOVAb Model Sum of Squares df Mean Square F Sig. 1 Regression 3.139 5 .628 .802 .005a Residual 34.462 44 .783 Total 37.602 49 a. Predictors: (Constant), X5, X4, X3, X1, X2 b. Dependent Variable: Y Residuals Statisticsa Minimum Maximum Mean Std. Deviation N Predicted Value 2.8310 3.9303 3.3543 .25311 50 Std. Predicted Value -2.067 2.276 .000 1.000 50 Standard Error of Predicted .148 .473 .295 .084 50 Value Adjusted Predicted Value 2.8927 4.1347 3.3787 .27769 50 Residual -1.94246 1.51698 .00000 .83864 50 Std. Residual -2.195 1.714 .000 .948 50 Stud. Residual -2.297 1.790 -.013 1.014 50 Deleted Residual -2.12730 1.65374 -.02437 .96225 50 Stud. Deleted Residual -2.420 1.837 -.020 1.038 50 Page | 110 Mahal. Distance .391 13.046 4.900 3.193 50 Cook's Distance .000 .170 .025 .044 50 Centered Leverage Value .008 .266 .100 .065 50 a. Dependent Variable: Y This picture is one of result which is come out from SPSS program; it shows the effect of five dimensions such as Tangibles, Reliability, Responsiveness, Assurance and Empathy to the Customer Satisfaction. The reader can see that there are two negative influence dimensions as Responsiveness and Assurance has lower Colum than the others. Page | 111 In this picture, the Customer Satisfaction can be seen with difference way. The middle line with 450 means that is normal influence character. If all points in the picture stay in line, it means that the entire customer is satisfy with the bank service. But the result has shows that not all the point stay in right line, it just stay near with it. So, the result of this picture is the customers are quite satisfied with the bank’s service quality. Page | 112 This picture is the last result come out from SPSS program version 16, it is general evaluate the customer satisfaction to Vietcombank banking service quality. In this picture, it can be seen that the point has scatter in everywhere. It shows the answer of the respondents and the reality of this research. Based on Likert Scale from 1 to 5, some of respondents are not agree with the bank service quality, so they have interests to choose 1 (Strongly Disagree), or 2 (Disagree). With the respondents who are quite satisfy with the bank’s Service Quality, of course the answer will the 4 (Agree) and 5 (Strongly Agree). With the respondents who are choosing number 3 (Neither Disagree or Agree), means that they are not usually use the bank service and they have normal interest with Vietcombank banking Service. Page | 113 Thesis Adviser Recommendation Letter This thesis entitled “The effect of BANK SERVICE Quality to Customer Satisfaction in Vietcombank(CASE STUDY IN VIETCOMBANK, VIETNAM)”prepared and submitted by Tri Duc Tai Anh in partial fulfillment of the requirements for the degree of Bachelor in the Faculty of Economics has been reviewed and found to have satisfied the requirements for a thesis fit to be examined. I therefore recommend this thesis for Oral Defense. Cikarang, Indonesia, March 2013 Acknowledged by, Thesis Adviser, ______ Irfan Habsjah, MBA, CMA M. Dra.Genoveva, M.M Head of Management Study Program i DECLARATION OF ORIGINALITY I declare that this thesis entitled “The effect of BANK SERVICE Quality to Customer Satisfaction in Vietcombank banking’’ (CASE STUDY IN VIETCOMBANK, VIETNAM)”is, to the best of my knowledge and belief, an original piece of work that has not been submitted, either in whole or in part, to another university to obtain degree. Cikarang Baru, Indonesia, March, 2013 Tri Duc Tai Anh ii ABSTRACT This research is aimed to examine “THE EFFECT OF BANK SERVICE QUALITY TO CUSTOMER SATISFACTION IN VIETCOMBANK BANKING (A CASE STUDY OF VIETCOMBANK BANKING – HA NOI BRANCH, VIET NAM)”. It helps people understand and investigates more the usage of deposit service. The select variables are based on service quality theory. Regression results indicate that there are five dimensions, which are Empathy, Assurance, Reliability, Responsiveness and Tangibles and it have significant effect to customer satisfaction into each transaction in Asia Commercial Bank through F- Test method. The researcher believes that customer satisfaction is related with the quality of service, and measuring can be used like an advantage for quality improvement. To archive this, the researcher is prepared to present some theoretical background about quality, some tools for quality improvement, and some tools for measuring customer satisfaction. The researcher will use the primary data through 100 questions to survey to customers which are using the bank service at Vietcombank Banking and program SPSS for analysis the data collected. The research results show that Reliability, Tangibles, Empathy, and Responsiveness have significant effect to customer satisfaction in Asia Commercial Bank. Other dimensions such as Assurance have not significant effect to customer satisfaction in Vietcombank banking via T – Test method. Keywords: Deposit Service, Service Quality, Customer Satisfaction March 2013 Tri Duc Tai Anh iii ACKNOWLEDGEMENT I wish to express my deepest appreciation and gratitude to all the people that have contributed to the completion of this dissertation. I had a great fortune to study under supervision of Ms. Claudia Genoveva and I am very grateful for her guidance and encouragement. Her profound knowledge provided me with opportunity to broaden my knowledge and to make significant progress. I wish to express my special thanks to Mr. Irfan Habsjah, Mr. Suresh Kumar, Ms. genoveva, for valuable advises during the progress of my thesis. I also appreciate my buddy friends, Tam, Trung, Huy, Andre, Willy, Advart for supporting and helping me in order to finish thesis. I really appreciate Phu, Tuyet, Nga and Trung. Thanks for being part of my life. It was a wonderful memories in 3 years study in President University. A thousand thanks to Mr.Vasu, for his kindness and help me to build personality. Last but not least, special thanks also to my family for their ever- present love and support. Without them none of this would ever have happened. I hereby dedicate this piece of work to my beloved parents. March 2013 iv Tri Duc Tai Anh TABLE OF CONTENTS THESIS ADVISER RECOMMENTDATION LETTER ...... i DECLARATION ...... ii ABSTRACT ...... iii ACKNOLEDGEMENT ...... iv TABLE OF CONTENT ...... v LIST OF TABLES ...... ix LIST OF FIGURES ...... x CHAPTER I. INTRODUCTION ...... 1 1.1 Background of the study ...... 1 1.2 Company Profile ...... 7 1.2.1 Organization structure ………………………………………………….8 1.2.2 Vision and mission ……………………………………………………..9 1.2.3 Job description …………………………………………………………9 1.3 Problems indentified ...... 10 1.4 Statement of Problem ...... 11 1.5 Research Objectives ...... 12 1.6 Significant of Study ...... 12 1.7 Theoretical Framework ...... 13 1.8 Scope and Limitation of study ...... 14 1.9 Research Hypothesis ...... 14 1.10 Definition of terms …………………………………………………….16 v CHAPTER II. LITERATURE REVIEW ...... 17 2.1 Theoretical of bank service ...... 17 2.1.1 The functions of bank service ...... 17 2.1.2 Bank service network ...... 18 2.2 Service ...... 20 2.2.1 Definition of Service ...... 20 2.2.2 Characteristic of Service ...... 20 2.3 Introduction of Quality ...... 22 2.4 Service Quality ...... 23 2.4.1 Service Quality model ...... 24 2.4.2 Simplified Service Quality ...... 26 2.4.3 Multidimensional character of the Service Quality ...... 27 2.4.4 The important of service quality ………………...... 34 2.5 Customers Satisfaction ...... 35 2.6 Customer satisfaction of service quality ………………………….. 37 CHAPTER III. RESEARCH METHODOLOGY ...... 39 3.1 Research design ...... 39 3.2 Research method ...... 20 3.3 Research framework ...... 42 3.4 Research instruments …………………………………………………...43 3.5 The basic elements to measure bank service quality ...... 44 3.5.1 Descriptive respondents such as: ...... 44 3.5.2 Sample size ...... 44 3.5.3 Validity test ...... 45 3.5.4 Reliability test ……………………………………………………….. 46 vi 3.5.5 Instrument Distribution …………………………………………….....47 3.6Data result of Validity and Reliability Test ...... 48 3.6.1 Validity test ………………………………………………………….. 48 3.6.2 Reliability test ……………………………………………………….. 48 3.7. Statistical Technique ………………………………………………….. 49 3.8. Hypothesis Test ……………………………………………………….. 50 3.8.1 F- Test ...... 50 3.8.2 T- Test ...... 50 CHAPTER IV.ANALYSIS OF DATA AND PRESENTATION OF RESULTS ...... 52 4.1 Respondent’s Profile ...... 52 4.1.1 Gender ...... 52 4.1.2 Age ...... 53 4.1.3The period of use ………………………………………………...... 54 4.1.4 Status ……………………………………………………………..55 4.1.5 Salary ……………………………………………………………..57 4.2 Data collected ...... 58 4.3 Statistic Descriptive Research ...... 59 4.4 Regression Model Testing Result ...... 71 4.4.1Coefficient of Multiple Determinations ...... 71 4.4.2F – test ...... 71 4.4.3T – test ...... 72 CHAPTER V. CONCLUSION AND RECOMMENDATION ...... 75 5.1 Conclusion …………………………………………………………...75 vii 5.2 Recommendation …………………………………………………….75 REFERENCES ...... 77 APPENDIX ...... A APPENDIX ...... B APPENDIX ...... C viii LIST OF FIGURES Figure 1-1: theoretical framework ...... 13 Figure 2-1: bank service card network ...... 19 Figure 2-2: four service characteristic ...... 22 Figure 2-3-1: service quality model ...... 25 Figure 2-3-2: simplified service quality ...... 26 Figure 2-4: perceived service quality ...... 29 Figure 3-1: research framework ...... 41 Figure 3-2: likert scale ...... 43 Figure 4-1: gender of respondent’s profile ...... 52 Figure 4-2: age of respondent’s profile ...... 53 Figure 4-3: period of used of respondent’s profile ...... 54 Figure 4-4: status of respondent’s profile ...... 55 Figure 4-5: salary of respondent’s profile ...... 57 Figure 4-6: answer collected data ...... 58 ix