Luận văn thạc sĩ UEH call center services and customer loyalty, a study in the vietnamese banking

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

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Le Hong Nhung

CALL CENTER SERVICES AND CUSTOMER LOYALTY

A study in the Vietnamese banking industry

MASTER OF BUSINESS (HONOURS)

Ho Chi Minh City – Year 2015

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

------------------------------

Le Hong Nhung

CALL CENTER SERVICES AND CUSTOMER LOYALTY

A study in the Vietnamese banking industry

ID: 22120061

MASTER OF BUSINESS (HONOURS)

SUPERVISORS: PROF. NGUYEN DONG PHONG

DR. NGUYEN PHONG NGUYEN

Ho Chi Minh City – Year 2015

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TABLE OF CONTENTS

ABSTRACT...........................................................................................................................................4

CHAPTER 1: INTRODUCTION...........................................................................................................5

1.1 Research background..............................................................................................................5

1.2 Research gap ...........................................................................................................................7

1.3 Research questions and objectives...........................................................................................7

1.4 Research scope and methodology ............................................................................................8

1.5 Thesis Structure ......................................................................................................................9

CHAPTER 2: LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT...............................11

2.1 Theoretical foundation................................................................................................................11

2.1.1 Definition of a call center......................................................................................................12

2.1.2 Customer Loyalty.................................................................................................................13

2.1.3 Perceived Customer Orientation...........................................................................................14

2.1.4 Customer Satisfaction...........................................................................................................16

2.1.5 Perceived Service Quality .....................................................................................................17

2.2 Proposed research model and hypotheses ...................................................................................20

Figure 1: Conceptual model..........................................................................................................21

CHAPTER 3 - RESEARCH METHODOLOGY..................................................................................23

Figure 2: Research process. ..........................................................................................................24

3.1 Measurement of constructs .........................................................................................................24

3.1.1 Perceived service quality.......................................................................................................25

3.1.2 Perceived customer orientation.............................................................................................26

3.1.3 Customer satisfaction ...........................................................................................................26

3.1.4 Customer loyalty ..................................................................................................................27

3.2 Sample ........................................................................................................................................28

3.3 Data analysis method ..................................................................................................................29

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CHAPTER 4: DATA ANALYSIS AND RESULTS..............................................................................32

4.1 Reliability Analysis .....................................................................................................................32

Table 1: Item Statistics..................................................................................................................33

4.2 Exploratory Factor Analysis (EFA).............................................................................................34

4.2.1 EFA for individual construct................................................................................................34

4.2.2 Multidimensional constructs – Perceived service quality and Customer loyalty ...................34

4.2.3 Customer orientation............................................................................................................35

4.2.4 Customer satisfaction ...........................................................................................................35

Table 2: KMO and Bartlett's Test.................................................................................................36

4.2.5 EFA for all variables.............................................................................................................36

Table 3: KMO and Bartlett's Test.................................................................................................36

Table 4: RESULTS OF JOINT FACTOR ANALYSIS FOR ALL SCALES.................................37

4.3 Regression analysis .....................................................................................................................38

4.3.1 Simple regression analysis ....................................................................................................38

Table 5: Model Summary of simple regression analysis................................................................38

Table 6: ANOVA of simple regression analysis.............................................................................39

Table 7: Coefficients of simple regression analysis........................................................................40

4.3.2 Multiple regression analysis: ................................................................................................40

Table 8: Model Summary of multiple regression analysis.............................................................41

Table 9: ANOVA of multiple regression analysis..........................................................................41

Table 10: Coefficients of multiple regression analysis...................................................................43

Table 11 ........................................................................................................................................46

Summary of hypotheses testing result...........................................................................................46

CHAPTER 5: DISCUSSION AND IMPLICATION ............................................................................47

5.1 Discussion ...................................................................................................................................47

5.2 Implication..................................................................................................................................48

5.3 Limitations and directions for future research............................................................................50

REFERENCES ....................................................................................................................................52

APPENDICES......................................................................................................................................62

Appendix 1: Questionnaire: Call center service and customer loyalty in bank services. ...................62

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APPENDIX 2: ..................................................................................................................................65

EFA AND RELIABILITY TEST RESULTS - SCALES WITHOUT MODIFICATION..................65

APPENDIX 3: ..................................................................................................................................67

RESULTS OF UNIDIMENSIONALITY AND RELIABILITY TEST - REFINED SCALES ..........67

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ABSTRACT

This study aims to explore the impact of perceived service quality, customer

satisfaction, and customer orientation on customer loyalty towards banking call center

service.

A sample of 223 customers who used banking call center service in Ho Chi Minh

City, Viet Nam was surveyed to test the model.

Structural equation modeling was used to analyze the data. It found that customer

satisfaction and customer orientation had positive effects on customer loyalty. It also found

that perceived service quality had positive effects on customer satisfaction.

Limitation of this study shows that the sample is selected conveniently and just from

several districts in Ho Chi Minh City, so it is not representative of the population.

The finding suggests that banking managers should concentrate on service quality,

make their services different and prominent from other banks.

Keywords

Call center, customer loyalty, commercial bank, customer orientation.

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CHAPTER 1: INTRODUCTION

Banks play an important and active role in the financial and economic development of a

country. An effective banking system greatly influences the growth of a country in various

sectors of the economy. This study would like to explore the impact of perceived service

quality, customer satisfaction, and customer orientation on customer loyalty towards banking

call center service. The first chapter shows you research background, research gap in Viet

Nam situation, research questions and objectives, research scope and methodology, and

thesis structure of the study.

1.1 Research background

In recent years, the banking industry plays an important role in Vietnam’s economy. The

contribution of commercial banks to increasing economic development is great. The

commercial banks not only continue being a great capital flow channel but also contributing

to keep stable monetary purchasing power in economy. As the role of finance intermediary,

commercial banks fund surplus money from savers and transfer into loans for borrowers

who do not have enough money to carry out a desired activity. This helps enterprises and

economy running smoothly and be an effectively capital flow channel (Mof, 2012).The

commercial banks enforce monetary policy of the State Bank of Viet Nam (SBV). In 2013,

SBV decreased operation interest rate 2% a year, decrease VND short-term interest rate 3%

a year for priority sectors; decreases VND deposit interest rate ceiling 1% a year (Cafe F,

2014). Credit growth in 2013 reached 11%, higher nearly 8.91% than end of 2012. Raising

capital maintained high growth rate at end of 2013, reached 15.6% compared to end of 2012

(Security Investment, 2014). These evidences show that the commercial banks become

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