Quan hệ tương quan giữa hành vi khách hàng gửi tiền và việc lựa chọn giao dịch ngân hàng trong khu vực các quận nội thành Hà Nội

SOUTHERN LUZON STATE UNIVERSITY, LUCBAN, QUEZON, PHILIPPINES

IN COLLABORATION WITH

THAI NGUYEN UNIVERSITY, SOCIALIST REPUBLIC OF VIETNAM

_______________________________________________________________________________

CORRELATION OF DEPOSITORS’ BEHAVIOR AND BANK

PATRONAGE IN THE INNER DISTRICTS OF HA NOI

DOCTOR

OF BUSINESS ADMINISTRATION

BY

TRINH THANH BINH – BECKAM

August, 2013

1

i

ACKNOWLEDGEMENT

I would like to express my heartfelt gratitude to leaders of Thai Nguyen

University in VietNam and Southern Luzon State University in the Philippines who

created best conditions for me to complete the course generally and fulfill the thesis

particularly.

My gratitude goes towards Professors directly gave me useful and memorable

lectures and guides in DBA namely Dr. Professor Cecilia N. Gascon, Dr. Professor

Walberto A. Macaraan, Dr.Professor Melchor Melo O. Placino, Dr.Professor Alice T.

Valerio, Dr. Professor Do Anh Tai, and Dr.Professor Tran Dai Nghia. They provided

me a rich and fertile environment to study and explore new ideas. They made my

DBA life is ever fluid, and, in the course of it all, a warm and inviting place to work.

My special thank to Dr. Professor Cecilia N. Gascon who provided me

valuable guides to complete the dissertation.

I am grateful to lecturers who managed the International Cooperation Program

between Vietnam and the Philippines namely Professor Tran Tuan Anh and Professor

Nguyen Thanh Hai. Without their cooperation, I could not have chance to join and

fulfill the course.

I would not have contemplated this road if not for my parents, my wife, my

children, and all of my dear friends who instilled within me a love of creative

pursuits, science and language, all of which finds a place in this the dissertation.

Trinh Thanh Binh

July, 2013

ii

TABLE OF CONTENTS

ACKNOWLEDGEMENT i

TABLE OF CONTENTS ii

ABSTRACT vii

LIST OF TABLES viii

LIST OF FIGURES xiv

LIST OF APPENDICES xv

CHAPTER

I. INTRODUCTION 1

1.1. Background of the Study 1

1.2. Objectives of the Study 3

1.3. Statement of the Problem 3

1.4. Hypotheses of the Study 4

1.5. Significance of the Study 5

1.6. Scope and limitation of the Study 6

1.7. Definition of Terms 7

II. REVIEW OF LITERATURE AND STUDIES 10

iii

2.1. Economic Development 10

2.1.1 Viet Nam Economy 10

2.1.2. Ha Noi Economic Development 11

2.2. Regulation of Banking Industry 12

2.2.1. Background of Vietnam Banking Industry 12

2.2.2. Key Challenges Facing the Banking Industry 13

2.3. Background of Ha Noi Banking Industry 15

2.3.1. Banking Industry in Ha Noi 15

2.3.2. Practice in Deposit Mobilization in Ha Noi 15

2.4. Consumer Behavior 16

2.5. Review of Related Studies 20

2.6. Psychological Attributes of Depositors’ Behavior in Bank

Patronage

22

2.6.1. External Psycological Attributes 22

2.6.2. Internal Attributes 23

2.7. Factors Influencing Depositor Behavior in Deposit 24

2.7.1. Subjective Factors 24

iv

2.7.2. Objective Factors 25

2.8. Conceptual Framework 27

III. METHODOLOGY 29

3.1. Research Design 29

3.2. Determination of Sample Size 29

3.3. Sampling Design and Techniques 30

3.4. Subject of the Study 31

3.5. Research Instrument 31

3.6. Data Collection Method 31

3.7. Data Processing Method 32

IV. RESULTS AND DISCUSSION 34

4.1. Depositors’ Profile 34

4.2. Depositors’ Distribution by Districts 36

4.3. Attributes of Depositors’ Behavior in Bank Patronage in the

Inner Districts of Ha Noi

37

4.3.1. External Attributes Implication of Depositors’ Behavior 37

4.3.1.1. Depositors’ Selection by Specific Banks and Type of

Banks – Foreign Banks, State Owned Banks and Joint Stock Banks

37

4.3.1.2. Time Span Depositors Began Relationship with Banks 39

v

4.3.1.3. Depositors’ Selection of the Deposit Kinds and Terms 42

4.3.2. Depositors’ Motivation in Bank Patronage 47

4.3.2.1. Depositors’ Motivation for Changing a Bank 47

4.3.2.2. Depositors’ Motivation for Selecting Banks They Deposit

with

54

4.3.2.3. Depositors’ Expectation on the Future Promotions 65

4.3.2.4. Depositors’ Future Investment Plan 68

4.3.2.5. Depositors’ Willingness to Make a Reference with Their

Friends

72

4.3.3. Depositors’ Perception and Bank Patronage 74

4.3.3.1. Depositors’ Attitudes in Acceptance of Interest Rate 74

4.3.3.2. Depositors’ Attitudes in Acceptance of Bank Service Quality 75

4.3.3.3. Depositors’ Attitudes for Existing Promotion Programs 77

4.3.3.4. Depositors’ Perception of Bank Safety 83

4.4. Factors Influencing Depositors’ Behavior in Bank Patronage in

the Inner District of Ha Noi

85

4.4.1. Depositors’ Selection of Factors and Factors’ Correlation 85

4.4.2. Critical Factors 89

vi

4.4.2.1. Prestigious Banks 89

4.4.2.2. Quick and Convenient Procedure 91

4.4.2.3. Competitive Interest Rates 91

4.4.2.4. Security and Safe 93

4.4.2.5. Convenient Location 94

V. SUMMARY, FIDINGS, CONCLUSIONS AND

RECOMMENDATIONS

95

5.1. Summary of Findings 95

5.2. Conclusions 102

5.3. Recommendations 105

BIBLIOGRAPHY 109

APPENDICES 114

SURVEY QUESTIONNAIRES 151

CURRICULUM VITAE 161

vii

ABSTRACT

This study was conducted to determine and analyze the correlation of

depositors’ behavior and bank patronage in the inner districts of Ha Noi. As the

knowledge of depositors’ behavior and bank patronage is not well understandable

and given the critical importance of understanding of depositors’ behavior, this study

intended to identify the factors influencing depositors’ behavior and define the

winning strategies for the banks in fund mobilization.

The methodology of the thesis was to review the various relevant literatures.

Method of system analysis, method of fieldwork, method of comparison, quantitative

research methods and forecasting method were also used in the study.

This research was conducted within the inner districts of Hanoi with 257

respondents, which were selected based on random probability. Findings showed that

depositors’ behavior was influenced by both internal demographic factors and

external factors. The result further revealed a high correlation between depositors’

behavior and factors such as “prestigious banks”, “security and safe”, “competitive

rates”, “quick and convenient procedure”. However, lower correlation was obtained in

depositors’ perception and attitudes.

The recommendations are developed from the insights and conclusions. First

is to address the brand issue of banks that built through depositors’ perception of

“bank safety”, “prestigious” and other key influencers. Second, banks should take

into account all factors in their winning marketing strategies. Third is to recommend

the contingency plan that banks should have to keep safe. And the last is to

recommend the SBV need to liberalize interest rates on deposits.

viii

LIST OF TABLES

Table CONTENT Page

Table 1 Bank classification by ownership and key indicators as of 30

June 2013

13

Table 2 Depositors’ profile 35

Table 3 Distribution of depositors by gender and marital status 36

Table 4 The bank selection by bank ownership 38

Table 5 Distribution of depositors by banks 39

Table 6 The period of time that depositors maintain relationship with

Banks

40

Table 7 Relation between marital Status and time span with banks 41

Table 8 Relation between age range and time span with banks 41

Table 9 Relation between professional, employment and time span

with banks

42

Table 10 Kind of deposits 43

Table 11 Deposit maturity 44

Table 12 Relation between marital status and type of deposits 44

Table 13 Relation between age range and terms of deposits 45

Table 14 Relation between education background and terms of deposits 45

Table 15 Relation between professional, employment and types of

deposits

46

Table 16 Relation between professional, employment and terms of

deposits

47

Table 17 Reasons for depositors to change banks (having at least two

banks at the same time) by gender and marital status

49

ix

Table 18 Reasons for depositors to change banks (having at least two

banks at the same time) by age

49

Table 19 Reasons for depositors to change banks (having at least two

banks at the same time) by education background

50

Table 20 Reasons for depositors to change banks (having at least two

banks at the same time) by employment

50

Table 21 Reasons for depositors to change banks (having at least two

banks at the same time) by income

51

Table 22 Relation between education background and the factor “to seek

for stronger reputation”

51

Table 23 Relation between professional and employment with the factor

“to seek for the best/better service”

52

Table 24 Relation between professional and employment with the factor

“I was not happy with the service so I switch to another bank”

53

Table 25 Descriptive Statistics of the factors depositors select to answer

the question why

53

Table 26 Correlation of the factors depositors select to answer the

question why

54

Table 27 Reasons for depositors to select the first banks 57

Table 28 Relation between age range and the factor of “paper and

electronic statements”

57

Table 29 Relation between age range and the factor of “security and

safe”

58

Table 30 Relation between education background and the factor of

“security and safe”

58

x

Table 31 Relation between education background and the factors of

“prestigious banks, clear explanation and procedure, banks

with branches locate at my convenient place, paper and

electronic statements”

59

Table 32 Relation between education background and the factor of

“competitive interest”

59

Table 33 Relation between education background and the factor of

“paper and electronic statements

60

Table 34 Relation between education background and the factor of “can

make deposit/withdrawal flexibly”

60

Table 35 Relation between professional and employment and the factor

of “competitive interest”

61

Table 36 Relation between professional and employment and the factor

of “prestigious banks”

62

Table 37 Relation between professional and employment and the factor

of “security and safe”

62

Table 38 Relation between income and the factor of “paper and

electronic statements”

63

Table 39 Relation between income and the factor of “recommendation

from friends/relatives”

63

Table 40 Relation between income and the factor of “banks with

branches locate at my convenient place”

64

Table 41 Descriptive statistics of factors for depositors’ selection of

the First Bank they deposited with

64

Table 42 Correlation of the factors for depositors’ selection of the 65

xi

first bank they deposited with

Table 43 Type of promotion that depositors want to have? 66

Table 44 Type of promotion that depositors want to have first? 67

Table 45 Relation between income and lottery participation 67

Table 46 Descriptive statistics of the promotion kinds depositors want

to have

68

Table 47 Correlations of the promotion kinds depositors want to have 68

Table 48 Depositors’ future plan to invest their money 69

Table 49 Relation between marital status with depositors’ plan to

deposit foreign currency at banks

70

Table 50 Relation between age range with depositors’ plan to deposit

foreign currency at banks

70

Table 51 Relation between income with depositors’ plan to deposit

foreign currency at banks

71

Table 52 Relation between income with depositors’ plan to buy gold

and save at home

71

Table 53 Descriptive statistics of future investment factors 72

Table 54 Correlation of future investment factors 72

Table 55 Depositors’ willingness to introduce their banks with friends 73

Table 56 Relation between education background with depositors’

willingness to refer banks with their friends.

73

Table 57 Relation between education background with depositors’

willingness to refer banks with their friends.

74

Table 58 Depositors’ acceptance of interest rates banks offer 75

Table 59 Depositors’ evaluation of service quality of banks 76

xii

Table 60 Relation between marital status and the rating of service

Satisfaction

76

Table 61 Promotion received 78

Table 62 How depositors like received promotion 79

Table 63 Types of promotion depositors received 79

Table 64 Depositors’ selection of promotion ranking the first 79

Table 65 Relation between income and the response to the question:

“did you receive any promotion?”

80

Table 66 Relation between age range with the kinds of promotion

Received

80

Table 67 Relation between age range and the depositors’ ranking of

promotion kinds they like most

81

Table 68 Relation between professional, employment and the

depositors’ ranking of promotion kinds they like most

82

Table 69 Relation between income and the depositors’ ranking of

promotion kinds they like most

82

Table 70 descriptive statistics of promotion kinds depositors received

for making deposits at banks

83

Table 71 Correlation of promotion kinds depositors received for

making deposits at banks

83

Table 72 Depositors’ response to the question as keeping money at

banks always safe

84

Table 73 Relation between employment with depositors’ perception of

the bank safety

85

Table 74 factors that depositors would consider when selecting a bank 87

xiii

for deposits

Table 75 The influencing factor that depositors rank as the first 88

Table 76 Descriptive statistics of the factors depositors would consider

to select banks for deposits in the next time

88

Table 77 Correlation of the factors depositors would consider to select

banks for deposits in the next time

89

Table 78 Relation between income with prestigious banks 90

Table 79 Relation between education with prestigious banks and

security and safety

91

Table 80 Relation between education with competitive interest rates 92

Table 81 Relation between employment with the factor of competitive

interest rates

93