Factors influencing customer satisfaction with the international payment service the case study of

MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM

HO CHI MINH UNIVERSITY OF BANKING

HUYNH THI LAM PHUONG

Factors influencing customer satisfaction with the

International payment service: The case study of the

Joint Stock Commercial Bank for Investment and

Development of Vietnam (BIDV), Binh Dinh Branch

BACHELOR THESIS

MAJOR: BUSINESS ADMINISTRATION

CODE: 7340101

HO CHI MINH CITY, 2022

MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM

HO CHI MINH UNIVERSITY OF BANKING

HUYNH THI LAM PHUONG

Factors influencing customer satisfaction with the

International payment service: The case study of the

Joint Stock Commercial Bank for Investment and

Development of Vietnam (BIDV), Binh Dinh Branch

BACHELOR THESIS

MAJOR: BUSINESS ADMINISTRATION

CODE: 7340101

SUPERVISOR

PHAM HUONG DIEN, Ph.D

HO CHI MINH CITY, 2022

i

ABSTRACT

Customer satisfaction plays a pivotal role in driving the success and growth

of every business organization in the way that it helps generate repurchase from

satisfied customers, forms strong brand loyalty as well as facilitates word-of￾mouth marketing.

In the context of gradual economy recovery after the 4th outbreak of Covid￾19 in Vietnam, there is huge pressure among banks to increase their charter capital

to enhance financial capacity and revenue diversification in new services.

Customer satisfaction is crucial because in banking industry where products are

highly homogeneous, quality of service is primary factor that influence customer’s

choice of bank.

The thesis elaborates on “Factors influencing customer's satisfaction with

the International payment service: The case study of the Joint Stock Commercial

Bank for Investment and Development of Vietnam (BIDV), Binh Dinh Branch”

with the aim of identifying factors behind customer satisfaction in a specific area

of service - International payment at a leading Vietnamese bank - BIDV, assessing

level of current performance of BIDV Binh Dinh branch in each area of customer

satisfaction determinants and proposing recommendations for improvement. This

will in turn supports the bank’s long-term growth and brand equity.

ii

DECLARATION OF AUTHENTICITY

I the undersigned declare that all material presented in this paper is my own

work or fully and specifically acknowledged wherever adapted from other sources.

I understand that if at any time it is shown that I have significantly

misrepresented material presented here, any degree or credits awarded to me on the

basic of that material may be revoked.

I declared that all statements and information contained herein are true,

correct and accurate to the best of my knowledge and belief.

Ho Chi Minh City, May 2022

Name

Huynh Thi Lam Phuong

iii

ACKNOWLEDGEMENT

First and foremost, the author would like to express the deepest gratitude to

the dedicated supervisor Dr. Pham Huong Dien for her great guidance and

meaningful advices without which the thesis would not be completed.

In addition, throughout the process of doing research, the author has

received a lot of attention and valuable support from teachers, friends and

relatives. Thus, the author would like to take this opportunity to send deep

gratitude to:

- All lecturers from Business Administration Department of Banking

University based in Ho Chi Minh city who have provided favorable conditions for

the author to have the opportunity to enhance knowledge of business

administration as well as banking industry and sharpen practical skills during the

last four years.

- All senior colleagues from the International payment service team at

BIDV Binh Dinh for their enthusiastic help with providing necessary data for the

thesis.

- Parents, relatives and friends for their technical and mental support.

Due to limited time, knowledge and research experience, the article can not

avoid limitations. Therefore, the author would like to receive comments from

teachers to better complete her thesis next time.

Ho Chi Minh City, May 2022

iv

Name

Huynh Thi Lam Phuong

TABLE OF CONTENTS

CHAPTER 1. INTRODUCTION............................................................................1

1.1. Research statement ........................................................................1

1.2. Research Objectives and Questions .............................................2

1.3. Research subject and scope...........................................................3

1.4. Research Methodology ..................................................................3

1.5. Research significance.....................................................................3

1.6. Structure of the thesis....................................................................4

Summary of Chapter 1...............................................................................4

CHAPTER 2. LITERATURE REVIEW ...............................................................6

2.1. Concept and Theory.......................................................................6

2.1.1. Service...........................................................................................6

2.1.2. Service quality ..............................................................................7

2.1.3. Banking service and International payment service .....................8

2.1.4. Customer satisfaction..................................................................10

2.1.5. The relationship between service quality and customer

satisfaction………………………………………………………….…..11

2.1.6. Customer satisfaction using international payment services......13

2.2. Previous studies on factors influencing customer

satisfaction………………………………………………………………13

2.3. Research model and hypothesis..................................................15

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2.3.1. Knowledgeable and experienced consultant team......................16

2.3.2. Tangibles.....................................................................................16

2.3.3. Responsiveness...........................................................................16

2.3.4. Convenience................................................................................17

2.3.5. Assurance....................................................................................17

2.3.6. Competitive price........................................................................17

Summary of Chapter 2.............................................................................20

CHAPTER 3. RESEARCH METHODOLOGY .................................................22

3.1. Research process..........................................................................22

3.2. Research design............................................................................23

3.2.1. Data collection ............................................................................23

3.2.2. Designing questionnaire .............................................................23

3.3. Data analysis.................................................................................26

Summary of Chapter 3.............................................................................26

CHAPTER 4. DATA AND SITUATIONAL ANALYSIS ..................................28

4.1. Overview of Bank For Investment and Development of

Vietnam and Bank For Investment and Development of Vietnam, Binh

Dinh branch

……………………………………………………………………28

4.1.1. Bank For Investment and Development of Vietnam..................28

4.1.2. Bank for Investment and Development of Vietnam, Binh Dinh

branch......................................................................................................29

4.1.3. Main business activities..............................................................30

4.1.4. Organization of apparatus at Bank For Investment and

Development of Vietnam, Binh Dinh branch .........................................31

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4.2. International payment service at Bank For Investment and

Development of Vietnam, Binh Dinh branch.........................................32

4.2.1. International payment services at Bank For Investment and

Development of Vietnam, Binh Dinh branch .........................................32

4.2.2. International payment operation process at Bank For Investment

and Development of Vietnam, Binh Dinh branch...................................35

4.3. Performance of international payment department, at Bank

For Investment and Development of Vietnam, Binh Dinh branch

during 2017 – 2021....................................................................................37

4.3.1. Market development ...................................................................37

4.3.2. Financial performance ................................................................38

4.4. SWOT analysis of customer service of the international

payment at BIDV Binh Dinh branch ......................................................42

4.4.1. Strengths .....................................................................................42

4.4.2. Weaknesses.................................................................................42

4.4.3. Opportunities ..............................................................................44

4.4.4. Threats.........................................................................................45

4.5. Survey data analysis.....................................................................46

4.5.1. Customer satisfaction..................................................................47

4.5.2. Factors influencing customer satisfaction ..................................47

Summary of Chapter 4.............................................................................52

CHAPTER 5. CONCLUSIONS AND RECOMMENDATIONS.......................54

5.1. Conclusions...................................................................................54

5.2. Recommendations........................................................................56

5.2.1. Price ............................................................................................56