College of Management I-Shou University Master Thesis Determinant Factors and Consequences of Customer Satisfaction in Vietnamese Internet Banking Sector Advisor: Dr. Heidi Chang Graduate Student: Duong Phuong Linh (Candy) January 2015 Acknowledgements In order to finish this thesis, I was granted a lot of assistance, guidance and supervision from professors, respondents and supporters. Hence, I want to thank to all who support, direct and motivate me throughout the process of completing the research. Especially, I would like to express my special thanks of gratitude to my supervisor Dr. Heidi Chang who initiated the project; guided and suggested me a lot of valuable and constructive comments; and gave me a good opportunity to complete my Master thesis. Besides, I would like to express my deep gratitude to our research committee members who assisted to improve my thesis paper. They worked hard and corrected my mistakes and errors to help my thesis better. I also want to thank all the respondents who have paid time to get through the entire survey with their enthusiastic and supporting manner. Moreover, I am particularly grateful for my family, my friends and my classmates. They always trusted and supported me when the study difficulties came. Their deepest love and sacrifice were spiritual inspiration to cheer me up. Lastly, thanks are extended to everyone who encouraged and guided me to finish my research work directly and indirectly. 2 Abstract The development of Internet-based technologies in the last two decades significantly changes the way businesses operate. Banking sector is along with the evolution of computer and specialized technologies in order to provide the highest quality to customers. Internet Banking is new service so it pays more and more attention of customers in Vietnam. Internet Banking services and perceived value is basically essential to satisfy and retain customers. They are also the critical elements to achieve customer satisfaction and then leads to customer loyalty and brand reputation. These research findings showed that there is positive relationship between service quality and customer satisfaction, perceived value and customer satisfaction, brand reputation and customer satisfaction, as well as customer loyalty and customer satisfaction. Key works: Internet Banking, Banking Sector, Customer Satisfaction, Service Quality, and Perceived Value 3 Table of Contents ACKNOWLEDGEMENTS .................................................................................................... 2 ABSTRACT ............................................................................................................................. 3 LIST OF TABLES ................................................................................................................... 6 LIST OF FIGURES ................................................................................................................ 7 CHAPTER I: INTRODUCTION .......................................................................................... 8 1.1. Introduction ............................................................................................................... 8 1.2. Research Objectives ................................................................................................. 9 1.3. Research Questions ................................................................................................. 10 1.4. Research Significance ............................................................................................ 10 CHAPTER II: LITERATURE REVIEW .......................................................................... 11 2.1. Internet Banking ........................................................................................................ 11 2.2. Customer Satisfaction ................................................................................................ 12 2.2.1. Definition ...................................................................................................... 12 2.2.2. Models of Assessing Customer Satisfaction................................................ 13 2.3. Perceived Value .......................................................................................................... 14 2.4. Service Quality ............................................................................................................ 16 2.5. Brand Reputation ....................................................................................................... 17 2.6. Customer Loyalty ......................................................................................................... 19 CHAPTER III: METHODOLOGY ..................................................................................... 21 3.1. Conceptual Framework ............................................................................................... 21 3.2. Research Design .......................................................................................................... 22 3.3. Sampling ....................................................................................................................... 23 3.4. Measures ...................................................................................................................... 24 3.4.1 Measures ......................................................................................................... 24 3.4.2 Key Variables .................................................................................................. 24 3.5. Data Analysis ................................................................................................................ 27 CHAPTER 4: RESULT AND DISCUSSION ...................................................................... 29 4.1 Descriptive Analysis ..................................................................................................... 29 4. 2 Mean and Standard Deviation .................................................................................... 32 4.3 Reliability Cronbach’s Alpha ....................................................................................... 35 4.3.1 Perceived value ............................................................................................... 37 4.3.2 Service quality ................................................................................................. 37 4.3.3 Customer satisfaction...................................................................................... 38 4.3.4 Brand reputation ............................................................................................. 38 4.3.5 Customer loyalty ............................................................................................. 38 4.3 Hypothesis testing ........................................................................................................ 38 4.3.1 Correlation test ............................................................................................... 39 4 4.3.2 Linear regression analysis .............................................................................. 41 4.4 One way ANOVA analysis ............................................................................................. 43 4.4.1: The differences of perceived value, service quality, brand reputation, customer loyalty and customer satisfaction among respondents’ age ................. 43 4.4.2 The differences of perceived value, service quality, brand reputation, customer loyalty and customer satisfaction among respondents’ job .................. 44 4.4.3 The differences of perceived value, service quality, brand reputation, customer loyalty and customer satisfaction among respondents’ monthly income ...................................................................................................................... 46 CHAPTER 5: CONCLUSION AND RECOMMENDATIONS ........................................ 48 5.1 Research summary ............................................................................................... 48 5.2 Theoretical and Practical implication ............................................................... 49 5.3 Research limitations and Future research........................................................ 52 5.4 Concluding statement .......................................................................................... 53 REFERENCES ....................................................................................................................... 55 APPENDIX A ......................................................................................................................... 61 APPENDIX B......................................................................................................................... 65 5 List of Tables Table 3.1: The sources of measurement scale…………………………………………………….25 Table 4.1 Demographic characteristics for overall respondents………………………….30 Table 4.2: Descriptive statistics for variables……………………………………………………...33 Table 4.3: Reliability analysis…………………………………………………………………………….35 Table 4.4: Reliability Cronbach’s alpha of respective factors……………………...……….37 Table 4.5: Correlation Matrix…………..……………………………………………………………...40 Table 4.6: ANOVA summary……………………………………………………………………………...41 Table 4.7: Coefficient summary …………………………………………………………..…………….42 Table 4.8: One way ANOVA tests of variables among respondent’s age…..……………….43 Table 4.9: One way ANOVA tests of variables among respondent’s job…..……….……….44 Table 4.10: One way ANOVA of monthly income……...………………………………………….46