Enhancement of customer satisfaction on services quality at bidv ninh binh branch

MEIHO UNIVERSITY

Graduate Institute of Business and Management

MASTERS THESIS

Enhancement of customer satisfaction on

services quality at BIDV Ninh Binh Branch

In partial fulfillment of the requirements for the degree of

Masters of Business Administration

Advisor: Ron Chuen Yeh

Co-advisor: Tu Thuy Anh

Graduate Student: Dinh Thuy Giang

November, 2018

Meiho University,

Graduate Institute of Business and Management

Master Thesis Committee Signature Form

Student: Dinh Thuy Giang

Title of Master Thesis:

Enhancement customer satisfaction on services quality at BIDV

Ninh Binh Branch

Accept of the Master Degree qualification by Members of Oral Committee.

Signature of Committee:

…………………………………………………..

…………………………………………………..

…………………………………………………..

Primary Advisor:

Chairman:

Oral Defense Date:

ACKNOWLEDGMENTS

Firstly, I would like to show my appreciation to my coworkers at BIDV – Ninh Binh

Branch, especially Operation Department where I am currently working as a Teller. This

research would not have been completed without their kind help.

I also want to present my thankfulness to my direct manager who gave me a lot of

support and encouragement to overcome the restriction of time and difficulties that I have in

my office job. I not only thank her for recommending me to choose the topic for my thesis,

but also for her permission to use the data system of the bank to serve for my research.

Last but not least, Iwould like to send my big thank to my advisors - Dr. Ron Chuen

Yeh and Dr. Tu Thuy Anh, who gave me a lot of help right at the beginning stage of this

thesis. All of them gave me priceless advice and valuable guidance during the period of

carying the thesis.

All in all, I would like to thank all those who supported and gave me a great

encouragement to finish this thesis.

ABSTRACT

With the development of global economy, banking industry in general and banking

industry in Vietnam in particular have expressed changing steps to meet the growing demand

of customers. With a population of more than 90 thousand people, Vietnam has advantages in

retail banking development such as a low starting point, a high rate of young population, high

internet speed and popularity. In addition, citizens are knowledgeable, they care and update

quickly with great technical advances in terms of information and communication technology,

and the income per capita continues to improve, although growing speed is slower than that of

the previous decade.

BIDV is known as one of the oldest Joint Stock Commercial banks in Vietnam, it was

established in 1957. By December 31st 2017, BIDV continued to be the largest joint-stock

commercial bank in terms of total assets in banking system of Vietnam. Understanding the

trend, BIDV also tried its hand at promoting and strengthen retail operations, with the slogan

of "Customer center". The bank always strives for completing themselves and meeting the

various needs of customers. To be one of BIDV staff, the researcher has done this thesis for

the purpose to gain the factors which affect Customers satisfaction of BIDV.

The research was created by quantitive method, through creating research model,

building quesionare and set up the survey formal. It is obvious that ROPMIS is a good

instrument to define service quality and the relationship between it and customer satisfaction

in banking market of Vietnam. The model of ROPMIS indicates that quality service is made

out of from six factors: resources, service outcome, process, management, image of company

and social responsibility. The thesis collected data to analyze and synthesis from surveying

300 customers of BIDV Ninh Binh Branch by questionaire, and researcher get back fully 300

acceptable replies.

At the end of the thesis, there were recommendations and solutions given to improve

customer satisfaction and boosting customer loyalty. There also are some limitations during

time conducting the thesis, due to limited resources and time. More research needs to carry

out in the future to fulfill this study result.

Keywords: Marketing, banking, retail, service quality, customer satisfaction, BIDV, Vietnam

Contents

ACKNOWLEDGMENTS

ABSTRACT

Tables

Figures

Chapter 1 Introduction.............................................................................................................1

1.1 Motivation.............................................................................................................................1

1.2 Purpose..................................................................................................................................5

1.3 Research Scope and Limitations...........................................................................................5

Chapter 2 Literature Review...................................................................................................6

2.1 Customer Satisfaction...........................................................................................................6

2.2. Service quality....................................................................................................................14

2.2.2. Several models and indicators of service quality assessment.........................................18

Chap 3 Research Methodology................................................................................................28

3.1. Methodological consideration...........................................................................................28

3.2. Quantitative method...........................................................................................................28

3.2.1. Research Model...............................................................................................................28

3.2.2. Design of questionnaire..................................................................................................30

3.2.3. Selection of sample..........................................................................................................31

3.3. Conclusion.........................................................................................................................32

Chapter 4 Results and Analysis...............................................................................................34

4.1 Demographic analysis.........................................................................................................34

4.1.1 Descriptive statistics........................................................................................................34

4.2.2 Outcome...........................................................................................................................37

4.2.3 Process.............................................................................................................................37

4.2.4 Management.....................................................................................................................38

4.2.5 Image................................................................................................................................38

4.2.6 Social responsibility.........................................................................................................39

4.2.7 Customer satisfaction.......................................................................................................39

4.3 Reliability test (Cronbach’s alpha).....................................................................................40

4.3.1 Resources.........................................................................................................................40

4.3.2 Outcome...........................................................................................................................40

4.3.3 Process.............................................................................................................................41

4.3.4 Management.....................................................................................................................41

4.3.5 Image................................................................................................................................42

4.3.6 Customer satisfaction.......................................................................................................42

4.4 Exploratory factor analysis.................................................................................................43

4.5 Regression model................................................................................................................46

4.5.1 Assessing the compatibility of the regression model........................................................46

4.5.2. Coefficient analysis.........................................................................................................47

Chapter 5 Recommendation and Conclusion.........................................................................50

5.1 Conclusion..........................................................................................................................50

5.2. Core solutions....................................................................................................................51

5.2.1. Improving image factors.................................................................................................51

5.2.2. Improve social responsibility..........................................................................................56

5.3. Supporting solutions..........................................................................................................59

5.3.1. Developing facilities and informatics technology...........................................................59

5.3.2. Developing committed criteria of service quality at BIDV Ninh Binh Branch...............60

5.3.3. Improving safety in banking transaction........................................................................61

5.3.4. Personalize relationship with customers........................................................................62

References................................................................................................................................64

Appendix..................................................................................................................................68

Tables

Table 3.1: Distribution of questionnaire items.........................................................................31

Table 4-1 Personal information of respondents.......................................................................34

Table 4.2: Descriptive statistic analysis - Factor R..................................................................37

Table 4.3: Descriptive statistic analysis - Factor O.................................................................37

Table 4.5: Descriptive statistic analysis - Factor M.................................................................38

Table 4.6: Descriptive statistic analysis - Factor I...................................................................38

Table 4.7: Descriptive statistic analysis of Social responsibility.............................................39

Table 4.8: Descriptive statistic analysis of Customer satisfaction...........................................39

Table 4.9: Descriptive statistic analysis...................................................................................39

Table 4.10: Reliability score of the resources dimension.........................................................40

Table 4.11: Reliability score of the outcome dimension...........................................................41

Table 4.12: Reliability score of the process dimension............................................................41

Table 4.13: Reliability score of the management dimension....................................................41

Table 4.14: Reliability score of the image dimension...............................................................42

Table 4.15: Reliability score of customer satisfaction..............................................................42

Table 4.16: Factor analysis result............................................................................................44

Table 4.17: Summary of model.................................................................................................46

Table 4.18: Regression analysis of service quality model........................................................47

Table 4.19 Hypothesis testing results.......................................................................................49

Table 5.1 Level of service quality at BIDV Ninh Binh Branch.................................................51

Figures

Figure 1.1. Overview BIDV revenue...........................................................................................4

Figure 2.1: First and second level drivers of overall customer satisfaction............................10

Figure 2.2: Gronroos’ model....................................................................................................20

Figure 2.3: Gaps in SERVQUAL model...................................................................................22

Figure 2.4: SERVPERF model.................................................................................................23

Figure 2.5: Original ROPMIS model.......................................................................................25

Figure 3.1: The chosen research model....................................................................................29

Figure 4-1 Descriptive Statistics on Sample chart for Income variable...................................35

Figure 4-2 Descriptive Statistics on Sample chart for Gender variable..................................35