RESEARCH PROJECT (BMBR5103) DETERMINANTS OF CUSTOMER SATISFACTION ON SERVICE QUALITY IN PRIVATE COMMERCIAL BANKS IN HO CHI MINH CITY STUDENT’S FULL NAME STUDENT ID INTAKE ADVISOR’S NAME & TITLE : PHAM NGOC DUNG : CGSVN00014973 : March, 2013 : PHAN DINH NGUYEN June, 2014 Page Advisor’s assessment Advisor’s signature Page ACKNOWLEDGMENTS I would like to express my deeply sincere gratitude to my teacher, Dr. Phan Dinh Nguyen, for his valuable guidance and advice on effective method. His professional research understanding helps me and my friends recognize the research method thoroughly and we had experienced actual process. His comments and meaningful suggestions were contributed great help for my completion of this research. In addition, I would like to special express my thanks to all of my classmates, my colleagues, my friends who are working in some banks in Ho Chi Minh City: Ms Ngo Tran Doan Trinh (VietBank), Mr. Ky Minh Thien (Vietcombank), Mr Hoang Minh Hung (GPbank), Mrs Nguyen Thi Chau (Eximbank)….for their support and encouragement during the time I was doing my research. And thank you to all customers who had spent precious time to answer the questionnaire for my topic. Ho Chi Minh City, Vietnam September 6th 2014 Pham Ngoc Dung Page Table of Contents Advisor’s assessment Acknowledgements List of Tables and figures List of Abbreviations Abstract CHAPTER 1: INTRODUCTION 10 1.1 Problem statement 10 1.2 Research Objectives 11 1.3 Research questions 12 1.4 Scope and Methodology of Research 12 1.5 Research structure 12 CHAPTER 2: LITERATURE REVIEW 14 2.1Theoretical literature 14 2.1.1 Quality 14 2.1.2 Service 14 2.1.3 Service Quality 15 2.1.4 Customer Satisfaction 16 2.1.5 Relationship between Service Quality and Customer Satisfaction 18 2.2 Service Quality Research Models 19 CHAPTER 3: RESEARCH METHODOLOGY 21 3.1 Data sources 21 3.2 Methods of data analysis 21 3.2.1 For objective No.1 21 3.2.2 For objective No.2 21 a. Scale 21 Page b. Analysis steps to achieve objective 22 3.2.3 For objective No.3 23 3.3 Research Framework 24 3.4 Research Hypotheses 24 CHAPTER 4: BUSINESS SITUATION AND PERFORMANCE OF PRIVATE COMMERCIAL BANKS IN HCMC 25 4.1. General overview of the activities of private commercial banks that have headquater in HCMC 25 4.2. The basic existence and limitations 27 4.3. A number of reasons 29 CHAPTER : EMPIRICAL RESULTS AND DISCUSSION 32 5.1 Results of interviews about the customer personal information 32 5.2. Checking the relevence of the scale 33 5.3. Exploratory factor analysis 34 5.4 Regression Results 41 CHAPTER : SOME POSSIBLE SOLUTIONS ARE GIVEN TO IMPROVE CUSTOMER SATISFACTION ON SERVICE QUALITY OF THE PRIVATE BANKS IN HCMC 47 6.1 Conclusion 47 6.2 Policy Recommendation 48 REFERENCES 53 APPENDIX 56 Appendix A – Questionnaire Survey 56 Questionnaire Survey (English) 56 Questionnaire Survey (Vietnamese) 61 Appendix B 66-73 Page List of Tables and figures Table 1.1: Result of collected samples 11 Figure : Research Framework 24 Table 4.1: The overview about business activities of private banks 25 Table 4.2: The operations for mobilizing and lending capital of the banks 26 Table 5.1: Demographic profile of the sample respondents 32 Table 5.2 Rotated Component matrix 35 Table 5.3 : Component score coeficient matrix 41 Figure 2: Research model 42 Table 5.4 : Regression analysis 42 Table 5.5 : Correlations testing results 43 Table 5.6 : Coefficientsa 44 Table 5.7 : The order of the impact of these factors to customer satisfaction 46 Page List of Abbreviations HCMC Ho Chi Minh City ACB Asean Commercial Bank OCB Ocean Commercial Bank HDBank House Development Bank SCB SaiGon Commercial Bank ABBank An Binh Bank Page ABSTRACT The banking industry is rapidly changing. This is the sector mainly depends on the trust and loyalty of the customer. Therefore, in order to succeed and survive in the current market, banking managers need to design strategies to enhance service quality to satisfy customers better than competitors. This study was conducted to identify the relationship between customer satisfaction, service quality of private commercial banks in Ho Chi Minh City (HCMC). It attempts to discover the impact of service quality on customer satisfaction in private commercial banks in HCMC. Five dimensions in service quality (SERVPERF) such as tangibles, reliability, responsiveness, assurance and empathy (Cronin and Taylor, 1992) were used to evaluate satisfaction with the quality of banking services. A Three-part questionnaire was developed as the instrument to collect data, using the five-point Likert scale, ranging from strongly disagree (1) to strongly agree (5). The structured questionnaire consists five (05) questions for Reliability, five (05) questions for Responsiveness, five (05) questions for Assurance, five (05) questions for Empathy and four (04) questions for Tangibility and five (05) for Customer satisfaction with relevant personal information. There were 269 usable responses of 390 customers who received the questionnaire. These customers were from five (05) private commercial banks in HCMC, such as : ABBank, OCB, VietABank, HDBank and SouthernBank, which approximates to 38,46% of the total number of banks that have headquarters in the area. Data has been analysed by using SPSS software (version: 16) and combining the Exploratory Factors Analysis (EFA) with Binary Logistic Model . Page Result of the study showed service quality dimensions is crucial for customer satisfaction in private commercial banks in HCMC and helps managers of commercial banks in HCMC taking measures to improve the level of satisfaction for customers in oder to keep old customers and attract new customers such as : variety of banks products and services, promote marketing activities and improve the capacity, skills of staff. Page CHAPTER 1: INTRODUCTION 1.1 Problem statement The social is increasingly developing, life quality of people is increasingly high, so the consumer demand for the products that they choose is also higher. Improving product and services quality is competitive trends that private commercial banks in Vietnam must pay attention in order to increase market share and face many challenges in term of competition, especially when large foreign financial groups and banks entered Vietnam. Being aware of the importance of customer satisfaction, Vietnam banking system in general and the private commercial banks in Ho Chi Minh City in particular need to improve their operations as well as strengthen their images in customers’ eyes in order to be able to capture market shares, develop faster and have position in the market. The problem that banks try their best to fulfill is how to give customers the best satisfaction in order to meet their needs when using bank’s products and services. The study “Determinants of customer saisfaction on service quality in private commercial banks in HCMC” is not out of this purpose which aims to enhance customer satisfactions for improving the service quality of the private commercial banks in HCMC in the context of financial liberalization and globalization. At the end of May, 2014 there are 13 private commercial banks that have headquarters in HCMC, such as : Eximbank, ACB, Sacombank, SaigonBank, NamAbank, VietcapitalBank, OCB, ABBank, DongAbank, VietABank, SCB, HDBank and SouthernBank. Three (03) of them such as ACB, Eximbank, Sacombank which have been rated as good domestic banks for the last years by various domestic and international financial publications based on theirs financial situation, operation scale, long-term vision, strategy, market positioning, service quality, analysts’ assessments. The remaining banks (10 banks) of them have Page 10 “1”= Strongly disagree; “2”= Disagree; “3”= Ambivalent; “4”= Agree; “5”= Strongly agree Ideas V3 Reliability If you have problems, banks are interested � in solving those problems The Banks offer their services on time as � they promise to so. Your transaction information is confidential. � V4 Conveyed information from bank is reliable. � � � � � V5 Reasonable service fee and interest rate. � � � � � V6 Responsiveness Employees of banks have ready attitude to serve you quickly and timely. � � � � � V1 V2 V7 V8 V9 Employees of banks ready go to customers’ house to advise and assist them The utility of the products and services of the bank to meet your requirements Processing time of application and procedure is fast V10 The Banks have several programs of attractive marketing and promotions. V11 V12 V13 V14 Assurance Bank employees have attentive and dedicated service attitudes to give you comfort. Bank employees are always on time to give you confidence. Bank employees have always done precise transactions to give you a sense of security when making transactions Bank employees have professional and good Page 58 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � expertise knowledge when counseling for you. V15 Bank employees have a high sense of responsibility in their work. � � � � � Empathy V16 Banks always show attention to you. � � � � � V17 Banks pay attention to what you are most interested and desire. � � � � � V18 Banks understand your special needs . � � � � � V19 Banks have more preferential policies for traditional customers, customers with reputable relations V20 Bank employees are actively interested in the your difficulties and always willing to assist you. Tangibles V21 Transaction locations of bank is convenient for you. V22 Time of banking operation are always convenient for your transactions. V23 Spacious bank offices, beautiful interior, transaction counters are arranged logically, safe parking. V24 Record of the proceedings is simple, clear and easy to understand. Employees of bank are well dressed and appear neatly Customer Satisfaction C1 Generally speaking, you are completely satisfied with services of the Bank employees C2 Generally speaking, you are pleased with the facilities of the Bank C3 In short, you are completely satisfied with the quality of bank services. C4 You will use these banking product and services more and more often C5 You will introduce banks to your friend . � Page 59 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � PART III : MORE SUGGESTIONS FOR THE IMPROVEMENT OF SERVICE QUALITY Do you have any ideas to contribute to the improvement of service quality of commercial banks in HCMC? This section is used for your suggestions. Besides, all other comments or ideas about service quality of commercial banks in HCMC are highly appreciated. Such ideas are very valuable for this research. …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… Thank you very much for your participation! Page 60 BẢNG KHẢO SÁT SỰ HÀI LÒNG CỦA KHÁCH HÀNG (Tiếng Việt) Tôi học viên trường OPEN UNIVERSITY MALAYSIA (OUM) thực nghiên cứu “Sự hài lòng khách hàng chất lượng dịch vụ ngân hàng thương mại cổ phần tư nhân thành phố HCM” Rất mong Anh/Chị dành chút thời gian quý báu để giúp hoàn thành số câu hỏi liên quan sau đây. Chúng xin cam đoan thông tin Anh/Chị hoàn toàn giữ bí mật. Nếu Anh/Chị có câu hỏi nào, xin vui lòng liên lạc với qua địa email: pndung73@gmail.com Chân thành cám ơn. PHẦN I : THÔNG TIN CÁ NHÂN 1. Xin anh chị cho biết giới tính � Nam � Nữ 2. Xin anh chi cho biết anh chị thuộc nhóm tuổi � Dưới 30 � Từ 30 đến 45 � Từ 46 đến 60 � Trên 60 3. Xin anh chi cho biết nghề nghiệp � Kinh doanh �Nhân viên văn phòng Khác……. 4. Xin anh chi cho biết thu nhập trung bình năm < 10 triệu đồng 10 < 20 triệu đồng Page 61 � Công nhân � 20 < 40 triệu đồng > 40 triệu đồng 5. Xin vui lòng cho biết trình độ học vấn anh/chị �Phổ thông � Trung cấp, cao đẳng � Đại học �Sau đại học 6. Xin vui lòng cho biết ngân hàng anh/chị giao dịch ngân hàng sau : � NH An Bình �NH Phát triển nhà � NH Việt Á � NH Phương Nam �NH Phương Đông 7. Xin vui lòng cho biết anh/chị giao dịch với ngân hàng (NH) � 01 NH � 02 NH � 03 NH � Trên 03 NH 8. Xin vui lòng cho biết dịch vụ ngân hàng anh/chị sử dụng �Tài khoản toán � Tiền gửi tiết kiệm � Vay vốn �Sản phẩm thẻ (Nợ, Có) �Dịch vụ chuyển tiền �Dịch vụ ngân hàng điện tử (Mobile, Internet, SMS Banking) �Khác PHẦN II: ĐÁNH GIÁ SỰ HÀI LÒNG CỦA KHÁCH HÀNG KHI SỬ DỤNG DỊCH VỤ NGÂN HÀNG TẠI TPHCM Trong bảng câu hỏi này, Anh/ chi vui lòng cho biết dịch vụ ngân . Vui lòng trả lời trung thực Xin đánh dấu chọn ô thích hợp với quy ước sau : “1”= Hoàn toàn phản đối; “2”= Không đồng ý ; “3”= Không có ý kiến ; “4”= Đồng ý; “5”= Hoàn toàn đồng ý Page 62 Ideas 10 11 12 13 14 15 16 Tin cậy Khi anh/chị gặp trở ngại, ngân hàng quan tâm giải vấn đề Ngân hàng cung cấp dịch vụ thời gian cam kết. Thông tin giao dịch anh/chị bảo mật Thông tin truyền đạt từ Ngân hàng đáng tin cậy Biểu phí dịch vụ lãi suất hợp lý Đáp ứng Nhân viên ngân hàng có thái độ sẵn sàng phục vụ anh/chị nhanh chóng hạn Nhân viên ngân hàng sẵn sàng đến tận nợi để tư vấn hỗ trợ cho anh/chị Các tiện ích sản phẩm dịch vụ Ngân hàng đáp ứng yêu cầu anh/chị Thời gian xử lý hồ sơ thủ tục nhanh chóng Ngân hàng có nhiều chương trình tiếp thị, khuyến hấp dẫn. Đảm bảo Nhân viên ngân hàng có thái độ phục vụ chu đáo, tận tình, tạo cho anh/chị cảm giác thoải mái . Nhân viên ngân hàng hẹn tạo cho anh/chị tin tưởng Nhân viên ngân hàng xác nghiệp vụ tạo cho anh/chị cảm giác an toàn thực giao dịch. Nhân viên ngân hàng có kiến thức chuyên môn cao, chuyên nghiệp tư vấn cho anh/chị Nhân viên Ngân hàng có tinh thần trách nhiệm cao công việc. � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � Cảm thông Ngân hàng thể quan tâm đến cá � � � � � Page 63 nhân anh/chị 17 18 19 20 21 22 23 24 Ngân hàng ý đến điều anh/chị quan tâm nhất, mong muốn Ngân hàng hiểu nhu cầu đặc biệt anh/chị Ngân hàng có sách ưu đãi khách hàng truyền thống, khách hàng có quan hệ uy tín Nhân viên Ngân hàng chủ động quan tâm đến khó khăn anh/chị sẵn sàng hỗ trợ anh/chị Hữu hình Địa điểm giao dịch Ngân hàng thuận lợi cho anh/chị Thời gian hoạt động Ngân hàng thuận tiện cho anh/chị giao dịch. Trụ sở ngân hàng khang trang, nội thất đẹp, quầy giao dịch bố trí hợp lý, điểm giữ xe an toàn. Hồ sơ thủ tục đơn giản, rõ ràng, dể hiểu. Trang phục nhân viên lịch, gọn gàng. Hài lòng khách hàng Nhìn chung, anh/chị hoàn toàn hài lòng với cung cách phục vụ nhân viên Ngân hàng. Nhìn chung, anh/chị hoàn toàn hài lòng với sở vật chất Ngân hàng. Tóm lại, anh/chị hòan toàn hài lòng với chất lượng dịch vụ Ngân hàng. Anh/chị sử dụng sản phẩm, dịch vụ Ngân hàng nhiều thường xuyên . Anh/Chị giới thiệu Ngân hàng cho bạn bè anh/chị. � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � PHẦN III : Ý KIẾN ĐÓNG GÓP THÊM Theo anh/chị, anh/chị có ý kiến đóng góp cho việc cải thiện chất lượng dịch vụ ngân hàng thương mại địa bàn thành phố Hồ Chí Minh. Phần Page 64 sử dụng cho đề nghị bạn. Ngoài ra, tất lời bình luận ý kiến khác chất lượng dịch vụ ngân hàng thương mại cổ phần có giá trị cao. Những ý kiến có giá trị cho nghiên cứu này. …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… …………………………………………………………………………………… Chân thành cám ơn hợp tác nhiệt tình Anh/Chị! Page 65 APPENDIX B Appendix : Cronbach’s Alpha Coefficient Reliability Stastistics Cronbach's Alpha N oH Items 0,762 24 Appendix : Exploratory Factor Analysis KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square .767 5446.224 Df Sig. 276 .000 Total Variance Explained Component Extraction Sums of Squared Rotation Sums of Squared Loadings Loadings Initial Eigenvalues % of Total Variance Cumulative % Total % of Cumulative Variance % % of Cumulative Total Variance % 5.041 21.003 21.003 5.041 21.003 21.003 3.568 14.865 14.865 3.587 14.947 35.950 3.587 14.947 35.950 3.438 14.326 29.191 3.385 14.102 50.052 3.385 14.102 50.052 3.140 13.083 42.274 2.758 11.493 61.545 2.758 11.493 61.545 3.109 12.954 55.228 1.542 6.426 67.971 1.542 6.426 67.971 3.058 12.743 67.971 .872 3.635 71.606 .796 3.317 74.923 Page 66 .689 2.871 77.794 .684 2.851 80.645 10 .637 2.653 83.298 11 .574 2.392 85.690 12 .551 2.295 87.985 13 .438 1.824 89.809 14 .409 1.704 91.513 15 .374 1.559 93.072 16 .347 1.444 94.516 17 .286 1.190 95.706 18 .274 1.143 96.850 19 .255 1.061 96.505 20 .238 0.993 97.910 21 .218 0.909 98.903 22 .029 0.121 99.813 23 .009 0.036 99.970 24 .007 0.030 100.000 Extraction Method: Principal Component Analysis Rotated Component Matrixa Component R1 .004 .729 .006 .172 -.071 R2 .076 .041 .853 .037 -.074 R3 .057 -.002 .825 .043 -.098 R4 .020 .019 .858 -.064 -.072 R5 -.065 .087 .744 .496 -.010 Re1 .015 -.089 -.034 -.010 .853 Re2 .775 -.061 .065 .098 .031 Page 67 Re3 .828 -.041 -.013 -.002 -.064 -.068 -.053 Re4 .881 .033 Re5 .813 -.012 .018 .027 -.051 -.060 .100 A1 -.072 -.009 .656 A2 .882 .037 -.056 -.034 .002 A3 .054 .008 -.033 .012 .870 A4 A5 .079 -.053 -.015 .026 .650 -.052 -.081 -.040 .041 .811 E1 -.128 .638 .044 .032 E2 -.090 -.001 .626 -.025 .213 -.059 E3 .079 .753 .070 .256 .121 E4 -.040 .894 .057 .187 -.056 E5 -.049 .890 .070 .198 -.031 T1 .023 .268 -.003 .913 -.022 T2 -.017 .347 .039 .753 .002 T3 .008 .264 -.005 .906 -.017 .800 -.102 -.044 .218 -.010 T4 Extraction Method : Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a. Rotation Converged in iterations. -.008 Component Score Coefficient Matrix Component R1 .010 .254 -.019 -.082 -.009 R2 .027 .002 .273 -.021 .006 R3 .021 -.033 .265 .024 -.006 R4 .011 -.026 .276 .022 .004 R5 -.014 .028 .238 -.043 .026 Re1 -.002 -.010 .020 -.006 .281 Re2 .217 -.038 .028 .057 .004 Re3 .232 .009 .000 -.021 -.005 Page 68 Re4 .248 .037 -.018 -.030 -.007 Re5 .228 .003 .021 .002 A1 -.017 -.018 .061 -.004 -.042 .219 A2 .248 .034 -.015 -.023 -.004 A3 .010 .025 .019 -.018 .288 A4 A5 .018 -.009 .019 .007 .214 -.020 -.020 -.016 .016 .266 E1 -.033 .208 .022 .032 E2 -.017 -.027 .204 -.026 -.042 -.009 E3 .031 .250 .009 -.055 .056 E4 -.000 .316 -.006 -.112 .002 E5 -.003 .312 -.001 -.107 .011 T1 .010 -.093 -.003 .345 -.023 T2 -.000 -.027 .008 .257 -.007 T3 .006 -.093 -.004 .343 -.021 .303 .020 -.010 -.085 -.010 T4 Extraction Method : Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization Component Scores Appendix : Results of regression Analysis Regression analysis Model Summary Model R .727a R Square Adjusted R Square Std. Error of the Estimate .528 .39211 .513 a. Predictors: (Constant), R, Re, A, E, T Page 69 ANOVAb Sum Squares Model of Df Mean Square F Sig. Regression 27.500 5.500 .000a Residual 24.600 160 .154 Total 52.100 269 35.773 b. Dependent Variable: CS Correlations testing results Correlations CS Pearson Correlation CS A .601** .490** .372** .433** .423** .000 .000 .000 .000 .000 269 269 269 269 269 Sig. (2-tailed) A E T R E T R Re N 269 Pearson Correlation .601** .368** .249** .467** .337** Sig. (2-tailed) .000 .000 .001 .000 .000 N 269 269 269 269 269 Pearson Correlation .490** .368** .132 .256** .284** Sig. (2-tailed) .000 .000 .091 .001 .000 N 269 269 269 269 269 Pearson Correlation .372** .249** .132 .150 .240** Sig. (2-tailed) .000 .001 .091 .053 .002 N 269 269 269 269 269 Pearson Correlation .433** .467** .256** .150 .299** Sig. (2-tailed) .000 .000 .001 .053 N 269 269 269 269 269 Page 70 269 269 .000 269 269 Re Pearson Correlation .423** .337** .284** .240** .299** Sig. (2-tailed) .000 .000 .000 .002 .000 N 269 269 269 269 269 **. Correlation is significant at the 0.01 level (2- 269 tailed). Coefficientsa Model Unstandardized Standardized Coefficients Coefficients B Collinearity Statistics Std. Error Beta T (Constant) -.355 .278 -1.276 .204 A .363 .070 .345 5.216 .000 .676 1.480 E .254 .058 .262 4.405 .000 .831 1.203 T .229 .066 .197 3.457 .001 .911 1.098 R .142 .067 .132 2.110 .036 .755 1.325 Re .147 .061 .146 2.421 .017 .814 1.228 a. Dependent variable: CS Page 71 Sig. Tolerance VIF Page 72 Page 73 [...]... business efficiency of private commercial banks in HCMC Specific objectives are as follows : 1 To consider the level of customer satisfaction on service quality of commercial banks in HCMC; 2 To identify the impact of service quality on customer satisfaction of the private commercial banks in HCMC; Page 11 3 To give some possible solutions to improve customer satisfaction on service quality of the private. .. Developing corebanking, enabling centralized data processing, and connecting and paing online throughout system of credit institutions Creating conditions for credit institutions and operators flexibility to use capital more efficiently, promoting and developing activities of payment, money transfer and electronic banking services to meet the increasing demand for translation banking economy Creating conditions... transaction-specific In relating customer satisfaction and service quality, researchers have been more precise about the meaning and measurements of satisfaction and service quality Satisfaction and service quality have certain things in common, but satisfaction generally is a broader concept, whereas service quality focuses specifically on dimensions of service (Wilson et al., 2008) Although it is stated that... commercial banks in HCMC; 1.3 Research questions Specifically, the research aims to address the following questions: 1 How are business situation and business performance of private commercial banks in HCMC? 2 What are are the most important dimensions of service quality that affect customer satisfaction in commercial banks in HCM city? 3 What should the private commercial banks in HCMC do in order to... (1993) also disagreed with the consideration of the expectation dimensions, and stated that only perception can be used to evaluate service quality Thus, in this study, SERVPERF will be used to measure service quality  The SERVPERF scale consists of the five dimensions of service quality and 22 perception items excluding any consideration of expectations Five dimensions of the SERVPERF scale are tangibility,... solutions to customer problems (p 21) Page 14 - In all, service can also be defined as an intangible offer by one party to another in exchange of money for pleasure 2.1.3 Service Quality : - Organizations operating within the service sector consider service quality to be a strategic component of their marketing plan (Spathis et al., 2004) Through service quality, organizations can reach a higher level of. .. expectations” Page 16 (Schiffman & Karun 2004, p 14) In line with Tsoukatos and Rand (2006), customer satisfaction is a key to long-term business success To protect or gain market shares, organizations need to outperform competitors by offering high quality product or service to ensure satisfaction of customers In proportion to Magesh (2010), satisfaction means a feeling of pleasure because one has something... debt Business results Table 4.1: The overview about business activities of private banks In the past 5 years, although operating during the global economic crisis and the difficulties of the country's the macro economic, the commercial banks operating in HCMC, in terms of quantity, there is a high level of growth in scale of operations and operating network This reflects on following 03 key dimensions:... commercial banks in HCMC  Chapter 6: Some possible solutions are given to improve customer satisfaction on service quality of the private commercial banks in HCMC Page 13 CHAPTER 2: LITERATURE REVIEW In this chapter, section 2.1 reviews key theories that are relevant of service quality and following this, section 2.2 introduces the service quality models which is used to measure service quality to fit private. .. Creating conditions for credit institutions to exploit and use capital more flexibly and efficiently, promoting and developing activities of payment, transfering money and electronic banking services to meet the increasing demand for banking services for the economy However, due to the impact of the global financial crisis and the difficulties of macro economy, the operation of the banking system in general . DETERMINANTS OF CUSTOMER SATISFACTION ON SERVICE QUALITY IN PRIVATE COMMERCIAL BANKS IN HO CHI MINH CITY STUDENT’S FULL NAME : PHAM NGOC DUNG STUDENT ID : CGSVN00014973 INTAKE. conducted to identify the relationship between customer satisfaction, service quality of private commercial banks in Ho Chi Minh City (HCMC). It attempts to discover the impact of service quality. to all of my classmates, my colleagues, my friends who are working in some banks in Ho Chi Minh City: Ms Ngo Tran Doan Trinh (VietBank), Mr. Ky Minh Thien (Vietcombank), Mr Hoang Minh Hung