Luận văn thạc sĩ UEH evaluating customer satisfaction after service recovery, a study on the retail

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

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Pham Thi Hanh Huong

EVALUATING CUSTOMER SATISFACTION

AFTER SERVICE RECOVERY

A study on the retail banking sector in Vietnam

MASTER OF BUSINESS (Honours)

Ho Chi Minh City – Year 2014

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

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

Pham Thi Hanh Huong

EVALUATING CUSTOMER SATISFACTION

AFTER SERVICE RECOVERY

A study on the retail banking sector in Vietnam

ID: 22110024

MASTER OF BUSINESS (Honours)

SUPERVISOR: Dr. TRAN HA MINH QUAN

Ho Chi Minh City – Year 2014

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Acknowledgement

This thesis was conducted during 8 months, from August 2013 to April 2014. Working on this

thesis has also given me opportunities to approach exciting knowledge.

First for all, I would like to thank my supervisor professor Tran Ha Minh Quan for his valuable

guidance and feedback which improved many aspects of my thesis.

Also, the great thanks are to my family and friends around me, who are always beside and give

me useful advices during this study.

Sincerely,

Pham Thi Hanh Huong

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Abstract

Vietnam is one of emerging country with many potential to develop. With the population

over 88 million (2012), Vietnam is potential market to invest especially for banking market.

Nowadays, the number of the banks in Vietnam is increasing rapidly including the local and

foreign banks; the competition for their existence becomes much more difficult than ever. Hence,

this research is going to examine the way to evaluating customer satisfaction after service

recovery in Vietnam retail banking sector. It concludes that ultimate success of any service

recovery program implemented by a bank and can only be measured by maintenance of satisfied

customer. This study reveals that perceived justice plays important role and has significant effect

on emotions and customer satisfaction after service recovery. In addition, the reality of

competition among the banks and how they exist in competitive market like Vietnam will be

mentioned in this research. Conclusion was drawn and it is recommend based on the findings of

the study that the banks in Vietnam should focus more on customers to satisfy them by

improving service recovery.

This study conducted a questionnaire survey to reach retail customers in Vietnam retail

banking. Data has been analysed mainly by descriptive analysis. Analysis results suggest that

how much service recovery effects on customer satisfaction and the specific relationships

between 2 constructs will be come up eventually.

The study concludes that the improvement of perceived justice may increase post-recovery

satisfaction, which ultimately retains valued customers and built loyalty in customers’ perception

in Vietnam retail banking industry.

Key words: Service recovery, Perceived justice, Emotions, Post-recovery satisfaction,

Retail banking.

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Table of Contents

Acknowledgement..................................................................................................................................................1

Abstract......................................................................................................................................................................2

LIST OF APPENDIXS .........................................................................................................................................5

LIST OF FIGURES ...............................................................................................................................................6

LIST OF TABLES .................................................................................................................................................7

Chapter 1 ...................................................................................................................................................................9

INTRODUCTION..................................................................................................................... 9

1.1 Research background....................................................................................................................9

1.2 Research problems...................................................................................................................... 12

1.3 Research Objective...................................................................................................................... 13

1.4 Research Hypothesis................................................................................................................... 14

1.5 Thesis structure ............................................................................................................................ 14

Chapter 2 ................................................................................................................................................................ 16

LITERATURE REVIEWS .................................................................................................... 16

2.1 Retail banking service recovery ............................................................................................. 16

2.2 Perceived justice with service recovery.............................................................................. 17

2.3 Emotions.......................................................................................................................................... 18

2.4 Post- recovery satisfaction ....................................................................................................... 20

2.5 Model and Hypothesis................................................................................................................ 21

2.6 Summary.......................................................................................................................................... 23

Chapter 3 ................................................................................................................................................................ 24

RESEARCH METHODOLOGY .......................................................................................... 24

3.1 Research design process............................................................................................................ 24

3.2 Sample size ..................................................................................................................................... 25

3.3 Data Collection.............................................................................................................................. 25

3.4 Pilot study ....................................................................................................................................... 26

3.5 Main study...................................................................................................................................... 26

3.6 Data collection............................................................................................................................... 27

3.7 Items measurement for service recovery and post-recovery satisfaction.............. 28

3.8 Methodology of data analysis.................................................................................................. 29

3.9 Summary......................................................................................................................................... 30

Chapter 4 ................................................................................................................................................................ 31

DATA ANALYSIS.................................................................................................................. 31

4.1 Data analysis methods................................................................................................................ 31

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4.2 Means and standard deviations of variables:................................................................... 31

4.3 Research sample characteristics............................................................................................ 33

4.4 Cronbach’s alpha coefficient of reliability test:............................................................... 35

4.5 Exploratory Factor Analysis (EFA). .................................................................................... 38

4.6 Multiple regression analysis for common model............................................................. 41

4.7 Hypothesis testing result........................................................................................................... 48

4.8 Summary of findings.................................................................................................................. 51

Chapter 5 ................................................................................................................................................................ 53

CONCLUSIONS AND SUGGESTIONS.............................................................................. 53

5.1 Conclusions..................................................................................................................................... 53

5.2 Managerial implications............................................................................................................ 54

5.3 Research limitation and future research directions....................................................... 55

References.............................................................................................................................................................. 56

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LIST OF APPENDIXS

Appendix 1: Questionnaire _English version .............................................................................61

Appendix 2: Questionnaire - Vietnamese version ......................................................................64

Appendix3: First time running – Eigen values...........................................................................67

Appendix 4: First time running – Factor loading........................................................................68

Appendix 5: Second time running – Eigen values......................................................................69

Appendix 6: Second time running – factor loading....................................................................70

Appendix 7: Third time running – Eigen values.........................................................................71

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