Thông tin tài liệu
IMPACT OF INTERNET BANKING SERVICE ON CUSTOMER SATISFATION IN
VIETCOMBANK
A CASE STUDY OF VIETCOMBANK BINH TAY BRANCH
In Partial Fulfillment of the Requirements of the Degree of
MASTER OF BUSINESS ADMINISTRATION
In International Business
By
Ms : Huynh Thi Diem Trang
ID : MBA06038
International University - Vietnam National University HCMC
September 2014
IMPACT OF INTERNET BANKING SERVICE ON CUSTOMER SATISFATION IN
VIETCOMBANK
A CASE STUDY OF VIETCOMBANK BINH TAY BRANCH
In Partial Fulfillment of the Requirements of the Degree of
MASTER OF BUSINESS ADMINISTRATION
in International Business
By
Ms : Huynh Thi Diem Trang
ID : MBA06038
International University - Vietnam National University HCMC
September 2014
Under the guidance and approval of the committee, and approved by all its members, this
thesis has been accepted in partial fulfillment of the requirements for the degree.
Approved:
---------------------------------------------Chairperson
---------------------------------------------Committee member
---------------------------------------------Committee member
--------------------------------------------Committee member
--------------------------------------------Committee member
--------------------------------------------Committee member
Acknowledgment
First and foremost, I would like to express my deepest thanks to my advisor –
PhD. Le Van Chon for his support and guidance throughout my thesis writing. I am
sure it would have not been possible without his help.
Secondly, I would like to send my sincere appreciation to professors and lecturers
in Master course – International University for teaching and training me during 2
years which provided to me a lot of precious knowledge.
Thirdly, I am grateful to all customers of Vietcombank who provided valuable
data during my survey. If there is no input data they contributed, the thesis can’t be
completed today.
Last but not least, I would like to express my sincere thanks to my parents for
their unceasing encouragement and support me during my hard working time on this
thesis.
i
Plagiarism Statements
I would like to declare that, apart from the acknowledged references, this
thesis either does not use language, ideas, or other original material from anyone; or
has not been previously submitted to any other educational and research programs or
institutions. I fully understand that any writings in this thesis contradicted to the
above statement will automatically lead to the rejection from the MBA program at the
International University – Vietnam National University Ho Chi Minh City.
ii
Copyright Statement
This copy of the thesis has been supplied on condition that anyone who
consults it is understood to recognize that its copyright rests with its author and that
no quotation from the thesis and no information derived from it may be published
without the author’s prior consent.
© Huynh Thi Diem Trang / MBA06038 / 2012-2014
iii
Table of Contents
List of Tables ..................................................................................................................... vi
List of Figures ................................................................................................................... vii
Abstract ............................................................................................................................ viii
Chapter one – Introduction ..................................................................................................1
1. Background ........................................................................................................1
2. Rationale for the study .......................................................................................3
3. Problem Statement .............................................................................................3
4. Objectives ...........................................................................................................4
5. Research Questions ............................................................................................4
6. Scope of the study ..............................................................................................5
7. Structure of the study .........................................................................................5
Chapter two – Literature Review .........................................................................................6
1. Basic Concepts ...................................................................................................6
1.1. Customer Satisfacion (CS) .....................................................................6
1.2. Service Quality .......................................................................................7
1.3. Internet Banking .....................................................................................9
1.4. Relationship between Service Quality and Customer Satisfacion .......12
2. Empirical Studies .............................................................................................14
3. Suggested Conceptual Model ...........................................................................17
Chapter three – Methodology ............................................................................................21
1. Sampling techniques and Sample size..............................................................21
2. Research Instrument .........................................................................................21
3. Data Collection Procedures ..............................................................................22
3.1. Primary Data .......................................................................................22
3.2. Secondary Data ...................................................................................23
4. Data analysis.....................................................................................................23
Chapter Four – Data Analysis and Results ........................................................................26
1. About Vietcombank Binh Tay Branch .............................................................26
2. Sample Demographics ......................................................................................31
iv
3. Assessing scale and research model .................................................................35
3.1. Assessing scale reliability by Cronbach’s Alpha ................................35
3.2. Descriptive Statistic ............................................................................40
3.3. Exploratory Factor Analysis (EFA) ....................................................44
3.4. Correlations between variables ...........................................................48
3.5. Hypotheses testing ..............................................................................50
3.6. Linear Regression Equation ................................................................52
3.7. Anova Analysis ...................................................................................53
Chapter Five – Conclusion and Recommendations ...........................................................55
References ..........................................................................................................................58
Appendix ............................................................................................................................62
v
List of Tables
Table 1. List of previous studies ...................................................................................... 14
Table 2. Independent variables (indicators) .................................................................... 24
Table 3. Total revenue of VCB Binh Tay from 2009-1st half 2012 .............................. 28
Table 4. Total number of new I-Banking users of VCB Binh Tay from 2011-2013 ......... 29
Table 5. Respondent Characteristics ............................................................................... 30
Table 6. Cronbach’s Alpha of independent variables scales ........................................... 36
Table 7. Cronbach’s Alpha after rejecting CS4 item ....................................................... 38
Table 8. Cronbach’s Alpha after rejecting CS6 item....................................................... 39
Table 9. Descriptive Statistics.......................................................................................... 41
Table 10. KMO and Bartlett's Test .................................................................................. 44
Table 11. Exploratory Factor Analysis (EFA) Results .................................................... 45
Table 12. Total Variance Explained ................................................................................ 46
Table 13. Correlations ..................................................................................................... 48
Table 14. Coefficients ...................................................................................................... 51
Table 15. Model Summary ............................................................................................... 53
Table 16. ANOVAb ........................................................................................................... 54
vi
List of Figures
Figure 1. Conceptual Model ........................................................................................ 19
Figure 2. Organization Structure of VCB Binh Tay ....................................................... 27
Figure 3: Total revenue of VCB Binh Tay from 2009 to1st half 2012 ........................... 29
Figure 4: Total number of new I-Banking users of VCB Binh Tay from 2011-2013 ... 30
Figure 5: Age ranges ....................................................................................................... 33
Figure 6. Income ranges ................................................................................................. 34
vii
Abstract
The purpose of this study is to explore the internet banking service dimensions
that will have the impact on customer satisfaction of Vietcombank customers.
A quantitative research is applied with survey questionnaires distributed to
respondents at bank counters.There are eventually 211 responses that are used as input
data. Collected data are processed in the statistical software SPSS; the consistency
cofficients measured with cronbach’s Alpha for scaling test and Exploratory Factor
Analysis (EFA) were used.
Results show that Web design, Customer service, Assurance, Preferential
Treatment and Information Provision are the important factors that have the impact on
customer satisfaction. While Assurance is the most significant factor, followed by
Customer service, Preferential treatment, Information Provision and Web design
respectively.
It is found that, generally, customer satisfaction is not too high, just above
average. The
findings suggest that banks should focus on main factors, especially
Assurance, in specific plans to develop services and enhance quality for higher
satisfaction of customers from this service.
Keywords : Customer Satisfaction, Internet Banking Service.
viii
CHAPTER ONE - INTRODUCTION
1. Background
In today’s world of intense competition, one of the keys to competitive
advantage is delivering high quality services and enhancing customer satisfaction
(Ismail, Made and Francis, 2009; Shemwell, Yavas and Bilgin, 1998). Service
quality has been identified as the ultimate goal of service providers
(Sureshchandar, Rajendran and Anantharaman, 2002). Service quality and
customer satisfaction are inarguably two concepts at the crux of the marketing
theory and practice (Spreng and Mackoy, 1996). Today, many financial service
organizations are rushing to become more customer focused (Peppard, 2000).
Technological
developments
particularly
in
the
area
of
telecommunications and information technology are revolutionizing the banking
industry. The internet has been exploited as a means to provide e-services. Many
banks try to provide a quality online service to satisfy their customers. These
banks are introducing internet banking as an assurance to their customers that they
will be able to maintain a competitive quality of service in the future, in efforts to
avoid losing their customers (Rod et al. 2009). Offering internet banking is no
longer regarded as a competitive advantage but a competitive necessity (Gan et
al., 2006, as cited in Rod et al. 2009). With the popularity of computers, easy
access to Internet and World Wide Web (WWW), Internet is increasingly used by
banks as a channel for receiving instructions and delivering their products and
services to their customers.
-1-
Stiff competition in banking sector is forcing the banks to become
customer friendly and customer oriented. Thus the customer satisfaction has
become more important with the increasing competition.
The modern banking has become customer-driven and technology-driven.
Driven by the challenges of competition, rising customer expectations and
shrinking margins, banks have been using technology to reduce cost and enhance
efficiency, productivity and customer convergence. Technology-intensive
delivery channels, like Automated Teller Machines (ATMs), internet banking,
tele-banking and mobile banking etc., have created a win-win situation by
extending greater convenience and multiple options for customers while
providing tremendous cost advantages to the banks (Shainesh and Choudhary,
2004).
During the last decade, technology has been dramatically transforming the
banking activities in Vietnam. The banking sector in Vietnam has witnessed
intensive competition in recent years. Since becoming a member of the World
Trade Organization (WTO) in 2007, the government has been carrying out the
commitments of trade liberalization policies, which has encouraged some
international banks and private sector institutions to intensify their activities in the
banking sector. Customers are also increasingly becoming sophisticated as they
have access to the latest forms of delivery channels (such as the ATM, internet
banking, etc.). Consequently, many financial institutions have to focus on
increasing customer satisfaction and customer retention through improved quality
of their services.
-2-
The rapid growth of internet banking in recent years is a clear indication
of consumer acceptance of this media. However, the impact of internet banking
on customer satisfaction in Vietnam is yet to be examined as few studies have
addressed this issue. This study thus aims to fill the gap in the literature by
focusing on the impact of internet banking service quality on customer
satisfaction with a case study of Joint Stock Commercial Bank for Foreign Trade
of Vietnam (Vietcombank) at Binh Tay Branch.
2.
Rationale for the study
The aim of this research is to study the level of customer satisfaction about
the quality of Vietcombank online banking services to identify whether customers
intend to revisit the banking site and to maintain a lasting relationship with it or
not.
From a theoretical viewpoint, this research enriches the literature that has
explored the concept of perceived quality of online services.
From a managerial point of view, it points to the bankers the importance
of promoting satisfaction factors which could produce favorable behavioral
intentions among customers.
3.
Problem statement
Although there has been a rapid diffusion of new technology applications
in banking sector in Vietnam, internet banking services have not been widely
adopted by bank customers. This may be due to lack of trust, poor customer’s
attitude and perceived risk towards the services.
-3-
When judging the quality of the provided internet banking service,
customers consider a lot of factors which influence their judgment. For some
customers the response and efficiency of the service providers would be of
greatest importance, for others the security and privacy issues might be more
important, and still for others what matters most may be the website design and
ease of use. In reality, customers have different expectations and requirements.
4.
Objectives
The study aims at enriching the knowledge and understanding of factors affecting
customer satisfaction of internet banking service in Vietcombank. Specifically,
the main objectives of the study are:
-
To identify what main factors of internet banking service impact customer
satisfaction.
-
To evaluate the extent of their impacts on customer satisfaction about internet
banking service quality
-
To identify the level of satisfaction of customers towards Vietcombank
internet banking service.
5.
Research Questions:
In order to achieve those 3 objectives, this study aims to answer the following
research questions:
1. What are the major factors affecting to customer satisfaction in using
internet banking service?
2. How do these factors impact customer satisfaction in internet banking
service quality?
-4-
3. What is the level of customer satisfaction towards the quality of
Vietcombank online banking service?
6. Scope of the study
The study concentrates on customer attitude and their satisfaction level of
using internet banking services provided by Vietcombank.
Due to time, resource constraints, the author could not carry out the survey
in all branches of Vietcombank countrywide, so that the study is limited to
Vietcombank - Binh Tay Branch located in district 6, Ho Chi Minh City.
7. Structure of the study
This study is organized into five chapters. The Introduction, which is
Chapter One, consists the background of the study, rationale, statement of the
problem, the main and specific objectives of the study, research questions and
how the study is organized. Chapter Two discusses literature related to the study
and introduces the framework while research methodology is discussed in chapter
Three. Chapter Fourth presents the data and analysis. Finally, Chapter Five
presents the summary of findings, conclusions and provide recommendations.
-5-
CHAPTER TWO - LITERATURE REVIEW
1.
Basic Concepts
1.1.Customer Satisfaction (CS)
Customer satisfaction (CS) has received numerous attention and interest
among scholars and practitioners alike because of its role as an important
variable of business strategy in this very competitive market (Lovelock and
Wirtz, 2007). Since the early 1960’s to date several researches have been
conducted on customer satisfaction by different researchers. Infact in the
words of Parker and Mathews “customer satisfaction has been fundamental to
the marketing concept for over three decades” (Parker and Mathews, 2001).
Customer satisfaction has been traditionally defined as “an evaluative
judgment prior to making a choice, about any particular purchase decision”
(Oliver, 1980). Pairot (2008) also defined Customer satisfaction as the
company's ability to fulfill the business, emotional, and psychological needs
of its customers. In that definition he acknowledged that customers usually
have varied levels of satisfaction since they have different attitudes and
experiences as perceived from the company.
According to Churchill and Surprenant (1982), customer satisfaction can
be defined as a “disconfirmation paradigm” since it is a result of
confirmation/disconfirmation of expectation that evaluates a product’s
performance with it expectation and desire. Customer satisfaction is therefore
an attitude or a rating made by the customer by comparing their pre-purchase
-6-
expectation to their subjective perceptions of actual performance (Oliver,
1980). ‘‘Satisfaction is a person’s feeling of pleasure or disappointment
resulting from comparing a product’s performance (outcome) in relation to his
or her expectation’’ (Kotler & Keller, 2006 p. 144). Bank customer
satisfaction is regarded as banks fully meeting the customers’ expectation
(Bloemer, Ruyter, and Peeters, 1998) and also said to be a feeling or attitude
formed by bank customers after service, which expressly connects the various
purchasing behaviour (Jamal and Naser, 2002).
Customer satisfaction is seen to be a state of mind that customers have
about a company when their expectations have been met or exceeded over the
lifetime of the product or service (Kevin Cacioppo, 1995 and Kumbhar,
2010). Satisfaction appears to be between pre-exposure and post-exposure of
attitudinal components (Oliver, 1980) and serves as a link between the various
stages of consumer buying behavior (Jamal and Nasser, 2002). Lenka, Suar et
al. (2009, p. 50) identified ‘customers’ satisfaction as a combination of their
cognitive and affective response to service encounters’.
1.2. Service Quality
Parasuraman, Zeithaml, and Berry (1985) posit that service quality is
‘performance based’ rather than object oriented, therefore “precise
manufacturing specifications concerning uniform quality can rarely be set”.
Tapiero (1996) also indicates that the definition of the term quality differ from
author to author and it is usually based on the person making the definition,
the measures applied and the context within which it is considered.
-7-
Service quality is an important contemporary issue in service management
and marketing (Clottey and Collier, 2008). Banking is seen as a service that
captures all the characteristics of service (Chakrabarty, 2006). Literatures
sampled from the 1980’s and 1990’s have examined service quality from two
points of view. Researchers like Carman (1990), Garvin (1983), Parasuraman
et al. (1985, 1988) have defined and measured service quality by looking at its
attributes. This is contrary to Bitner and Hubbert (1994), Iacobucci, Grayson,
and Ostrom (1994), Oliver (1993), and Parasuraman, Zeithaml, and Berry
(1994) who examine the application of services to conceptualize the
relationship between service quality and customer satisfaction. Donnelly et al
(1995) also defines service quality as the degree of excellence or superiority
that an organization's product possesses and argues that it is influenced by
three service quality dimensions. These three dimensions are customer
service, service knowledge and service infrastructure and technology.
Just like customer satisfaction, service quality is equally difficult to
measure accurately and an abstract construct (Carman 1990). In support of the
above statements, while Shostack (1977) looks at the intangibility of service
that is rendered or experienced, Parasuraman et al. (1985) argues that service
quality goes beyond outcomes and involves the delivery process. Based upon
available literatures sampled, service quality shares some similarities with
customer satisfaction, although the two are not the same (Cronin and Taylor,
1992; Parasuraman et al., 1985). This according to Clemes et al has led to the
-8-
combination of service quality and customer satisfaction literature as the basis
service quality theory (Clemes et al., 2007).
1.3.Internet Banking
Internet banking involves the use of banking services via the World Wide
Web (Bernstel, 2000). Internet banking permits consumers to carry out usual
banking transactions on a computer which is equipped with Internet
connection (Fox, 2006). Internet banking is the situation where ―customers
can access their bank account via the internet using a PC or mobile phone and
web-browser (Zeithaml et al., 2002).
Basel Committee Report on Banking Supervision (1998) defines Internet
banking services as the provision of various banking products and services
like bank account management, electronic bill payment and financial advice
over the Internet. Mukherjee and Nath (2003) describes Internet banking as a
type of banking activity through which consumers can perform banking
transactions such as checking account balances and making payments via
telecommunication network. Internet banking is a process of innovation
whereby customers handle their own banking transactions without visiting
bank tellers (Qureshi et al., 2008).
According to Burr (1996), internet banking is an electronic connection
between bank and customer in order to prepare, manage and control financial
transactions. Internet banking allows consumers to access their bank and
accounts to undertake banking transactions. Thulani et al (2009) refer internet
banking as systems that enable bank customers to get access to their accounts
-9-
and general information on bank products and services through the use of
bank’s website, without the intervention or inconvenience of sending letters,
faxes, original signatures and telephone confirmations. It is the types of
services through which bank customers can request information and carry out
most traditional retail banking services such as opening an account or
transferring funds to different accounts, and new banking services, such as
electronic online payments via a telecommunication network without leaving
their homes or organizations (Aladwani, 2001; Daniel, 1999; Mols, 1998;
Sathye, 1999). It provides universal connection from any location worldwide
and is universally accessible from any internet linked computer (Thulani et al,
2009; Perumal and Shanmugan, 2004; Bradley and Stewart, 2003 and
Rotchanakitumnuai and Speece, 2003).
According to Michael Karlin, the President and Chief Operation Officer of
the world’s first virtual bank, Security First Network Bank, the idea of internet
banking is as follows:
-
You do not have to purchase any software, store any data on your
computer, back up any information, since all transactions occur on
the bank server over the infrastructure of the Internet.
-
You will be able to conduct your banking services anywhere you
like but you need to have a computer and a modem, no matter
where you are (e.g. at home, at office, or in a place outside the
country).
- 10 -
-
You can use the banking services 24 hours a day, 7 days a week,
and 365 days a year. You no longer have to reconcile a bank
statement or manually track your ATM and paper checks.
At an advanced level internet banking is called transactional online
banking, because it involves the provision of facilities such as accessing
accounts, transfer of funds, and buying financial products or services online
(Sathye, 1999). The terms internet banking and online banking are often used
in the literature to refer the same things.
Internet banking is considered as an online revolution of the traditional
banking services which offers customers the greatest expediency for
performing banking transactions via the Internet.
Internet banking is developed to help banks deliver services and products
better, faster, and cheaper. It enables customers to browse essential bank
products and services seven days a week through their personal computers
(Polatoglu & Ekin, 2001). It allows consumers to perform banking
transactions over the Internet anywhere and anytime (Polatoglu & Ekin,
2001).
According to Nehmzow (1997) internet banking offers the traditional
layers in the financial services sector the opportunity to add a low cost
distribution channel to their numerous different services. He continues that
internet banking also creates a threat to traditional banks’ market share,
because it neutralizes so many of their competitive advantages in having a
traditional branch bank network.
- 11 -
By offering internet banking services, traditional financial institutions seek
to lower operational costs, improve consumer banking services, retain
consumers and expand share of customer. Internet is the cheapest delivery
channel for banking products as it allows the entity to reduce their branch
networks and downsize the number of service staff. Thus, contemporary banks
now regard the internet channel as equally important to traditional channels of
branches, automated teller machines (ATM), telephone banking and call
centers (Gartner, 2003).
In the new banking environment, internet banking is increasingly managed
as an operational azctivity and an important element of a multi-channel
strategy (Black et al., 2002). ISACA (Information Systems Audit and Control
Association) recorded that more and more banks are transforming their
businesses by using Internet technology to develop or expand relationships
with their customers..
Currently in Vietnam, internet banking is available and offered by the
majority of Vietnam’s leading international and domestic banks. A survey
conducted by ComScore announced on 9/3/2011 shows that the number of
users of e-banking in Vietnam has increased 35%, from 701 000 to 949 000.
This is still a modest figure compared with the growth rate of the mobile and
Internet market and is much smaller than the population rate.
1.4. Relationship between Service Quality and Customer Satisfaction
The importance of service quality and customer satisfaction is shown by
the depth of theoretical and empirical studies on the two concepts in recent
- 12 -
times. In the word of Spreng and Mackoy (1996) service quality and customer
satisfaction are the two essential concepts that are at the crux of the marketing
theory and practice.
According to Parasuraman et al (1985), there is an established strong
relationship between quality of service and customer satisfaction since a
perceived higher level of service quality results in increased customer
satisfaction and a lower level of service quality results in a dissatisfied
customer (Jain and Gupta, 2004 and Kumbhar 2011).
As also indicated by Parasuraman, Zeithaml and Berry (1988) in their
empirical work , they argue that “if the expected quality of service and actual
perceived performance is equal or near equal the customers can be satisfy,
while a negative discrepancy between perceptions and expectations or
‘performance-gap’ lead to customer dissatisfaction, and positive discrepancy
leads to consumer delight”. The relationship between expectation, perceived
service quality and customers satisfaction have been investigated in a number
of researches (Zeithaml, et al, 1996).
As posited by Delvin (1995), the quality of services derived from a
banking activity influences it usage hence since customers have less time to
visiting a bank and therefore want a higher degree of convenience and
accessibility. This attributes has led to customers being satisfied thus their
adoption of Internet banking. Additionally, Delvin (1995) argues that
perceived usefulness, ease of use, reliability, responsiveness, security, and
continuous improvement (Liao and Cheung, 2008) has led to the adoption of
- 13 -
internet banking. Liao and Cheung (2002) found in their study that individual
expectations with reference to accuracy, security, network speed, userfriendliness, and user involvement and convenience were the most important
quality attributes in the perceived usefulness of Internet-based e-retail
banking.
2. Empirical Studies
Many past studies have developed various models for understanding
relevant e-service quality dimensions relevant to internet banking. Followings
are few studies have examined customer satisfaction in relation to internet
banking.
Table 1. List of empirical studies
No.
1
TITLE
“SERVQUAL:
multiple-item
for
a
AUTHOR
1988
Parasuraman,
The
Zeithaml and
containing 26 items, measures
scale
measuring
Berry
consumer
perceptions
FINDINGS
YEAR
five
SERVQUAL
dimensions
quality
of
of
including:
tangibles,
service quality”
scale
service
termed
reliability,
responsiveness, assurance, and
empathy.
2
“Service quality in
the banking sector:
1999
Joseph et al.
Six
dimensions
banking
service
of
online
quality
- 14 -
the
impact
technology
of
including: convenience/accuracy,
on
feedback/complaint
service delivery”
management, efficiency, queue
management, accessibility and
customization.
3
“A
conceptual
framework
understanding
service
for
quality include: access, ease of
e-
navigation, efficiency, flexibility,
for
reliability,
personalization,
security,
responsiveness,
future research and
assurance, site aesthetics and
managerial practice”
price knowledge.
“The
Key
Determinants
Internet
5
Zeithaml et al. Attributes of internet service
quality:
implications
4
2001
2001
Jun and Cai
Significant
dimensions
that
of
determine service quality: web
Banking
site design, information, ease of
Service Quality: A
use,
Content Analysis”
responsiveness, and reliability.
“Developing a Scale
to
Measure
the
2001
access,
Yoo and
SITEQUAL
Donthu
dimensions:
courtesy,
with
ease
Perceived Quality of
aesthetics
design,
an Internet Shopping
speed and security.
four
of
use,
processing
Site (SITEQUAL)
- 15 -
6
“Measuring customer
perceived
2004
online
M.Jun and
service quality: Scale
development
Z. Yang,
R.T. Peterson
and
Six key online service quality
dimensions:
reliability,
responsiveness,
competence,
ease of use, security, and product
managerial
portfolio.
implications”
7
“Perceived e-service
quality
2007
(PeSQ):
Measurement
E. Cristobal,
Perceived
C. Flavia and
multidimensional construct: web
M. Guinali
validation and effects
on
customer
is
a
service,
assurance and order management
consumer
Perceived quality influences on
satisfaction and web
satisfaction; and that satisfaction
site loyalty”
8
design,
quality
influences on consumer loyalty.
“Measuring
the
2010
Ho and Lin
There are five dimensions and 17
Service Quality of
items in the measurement scale
Internet
for measuring the service quality
Scale
Banking:
Development
and Validation”
of internet banking.
The
five
dimensions
are:
customer service, web design,
assurance, preferential treatment,
and information provision.
- 16 -
3. Suggested Conceptual Model
Based on a thorough review of literature, the conceptual model presented
in Figure 4. It descibes the dimensions of Internet Banking Service Quality
(IBSQ) for which Customer Satisfaction (CS) was measured. The conceptual
framework for this study adopts the IBSQ dimensions proposed in the model of
IBSQ in “Measuring the Service Quality of Internet Banking: Scale Development
and Validation” (Ho and Lin, 2010). This model is also suggested in an
International Journal of Scientific & Technology Research “Customer Satisfaction
With Internet Banking Service Quality In The Ghanaian Banking Industry”
(Nimako, Gyamfi and Wandaogou, 2013). The five dimensions identified in the
model are: web design, customer service, assurance, preferential treatment and
information provision.
This model is adopted for two reasons. First, the model is based on
extensive literature review. Second, the dimensions in the model are validated
empirically as applicable to internet banking context and not just general e-service
quality context.
Web design: This dimension covers the design of the web site and includes items
like web content layout, content updating, navigability, and user-friendliness.
These are consistent with findings of previous studies (Aladwania and Palvia,
2002; Yang and Fang, 2004; Z. Yang, M. Jun and R.T. Peterson, 2004).
Customer Service: Customer service has been recognized as an important element
for enhancing service quality in online shopping and banking (Zeithaml,
Parasuraman and Malhotra, 2001). Elements in customer service dimension have
- 17 -
been noted in many previous studies (Madu, 2002; Wolfinbarger and Gilly, 2003).
This dimension has to do with service reliability, customer sensitivity,
personalized service, and fast response to complaints that have been described as
responsiveness to customer needs and complaints ( Parasuraman, Zeithaml and
Berry, 1988).
Assurance: This is made up of the guarantee that the record showing banking
activities and security of account information is not shared (Yang and Fang 2004;
Saha and Zhao, 2005). Strong issues on security are a common concern to
individuals hence their unwillingness to use internet banking (Madu, 2002). Many
previous study have demonstrated that assurance is one of the critical elements of
online banking service quality (Yoo and Donthu, 2001), (Wolfinbarger and Gilly,
2003). The assurance dimension describes impressions by the service providers
that convey a sense of security and credibility (Parasuraman, Zeithaml and Berry,
1988). Security and privacy are related items that affect the confidence to adopt
online banking services (Wolfinbarger and Gilly, 2002).
Preferential Treatment: This is related to the added value of using internet
banking services. Where customers perceive that the incentive of online banking
is attractive then they would be more willing to use internet banking
Information Provision: Information provision has become one of the key
elements of online service quality as customer would need the right information
that enables them complete online banking transactions successfully (H. Li and R.
Suomi, 2009).
- 18 -
Proposed model
We hypothesize that all those attributes have a positive impact on
customer satisfaction in internet banking.
Figure 1. Conceptual Model
Web design
Customer
service
Assurance
H1(+)
H2(+)
H3(+)
H4(+)
Preferential
treatment
Customer
Satisfaction in
Internet
Banking
H5(+)
Information
provision
Online Service
- 19 -
Hypotheses
This study came up with the following hypothesis based on the literature review:
H0(null): The five dimensions of Online Service do not impact on customer
satisfaction in internet banking.
Hypothesis 1 (H1): Web Design of Online Service has positive impact on
customer satisfaction in internet banking.
Hypothesis 2 (H2): Customer Service of Online Service has positive impact on
customer satisfaction in internet banking.
Hypothesis 3 (H3): Assurance of Online Service has positive impact on customer
satisfaction in internet banking.
Hypothesis 4 (H4): Preferential Treatment of Online Service has positive impact
on customer satisfaction in internet banking.
Hypothesis 5 (H5): Information Provision of Online Service has positive impact
on customer satisfaction in internet banking.
- 20 -
CHAPTER THREE - METHODOLOGY
1. Sampling techniques and Sample size
Convenience sampling method is used for data collection. Convenience
sampling is a non-probability sampling technique where subjects are selected
because of their convenient accessibility and proximity to the researcher (Black,
1999). Convenience sampling is easy to carry out and requires relative little cost
and time to carry out.
The sample size used for this study is two hundred and eleven
Vietcombank customers who have used banking service provided by
Vietcombank for the last twelve months.
2. Research Instrument
The main research instrument used for this study is the questionnaire.
Based on the literature review and the previous concerning researches we build up
our own questionnaires that are most suitable to our case, to our geographic
and demographic situation.
The questionnaire used for the study is divided broadly into two sections.
One is on the demographics and the other one is on characteristics of service
quality. In the demographic section variables such as age of the respondent,
gender, income level, marital status and educational level are asked. The section
on service quality is divided into five sub sections. These subsections are Web
design, Customer service, Assurance, Preferential treatment and Information
provision. The five subsections use a five point Likert Scale where respondents
- 21 -
are asked to indicate the extent to which they agree/disagree with various
statements. The Five-Point Likert’s scale having the ratings of “strongly disagree”
(1) and “strongly agree” (5) are used.
3.
Data Collection Procedures
3.1. Primary Data
A self-administered, structured questionnaire is used to gather data from
respondents to the study. Each respondent to the study is supposed to fill a
questionnaire after a brief introduction and objectives of the study have been
explained. The research questionnaires are distributed to customers coming to
Vietcombank Binh Tay Branch during business hours.
A total of 220 questionnaires are sent to individual customers. However
only a total of 211 responses are collected and used for input data. Those
unusable responses are left aside and rejected, of which that are not
completely finished, or suspiciously unintended crossed, or crossed with same
scale for more than five items with the same frequency.
According to Hair’s theory (Hair et al, 2010), the required sufficient
sample size is a result of number of variable multiplied by 5. There are 23
variables in our questionnaires. Thus, the number of 211 accessible samples
would be accepted since it satisfies the requirement for chosen sample size.
Moreover, the higher the number is, the more reliable the data become. Therefore,
this total number is quite good.
- 22 -
The chosen respondents should have been using Internet banking for at
least twelve months. That is long enough for a person experiencing the internetbanking services.
3.2. Secondary Data
Secondary data are obtained through various kinds of documents such as
research reports, annual reports, books and articles related to development of
internet banking service quality and customer behavior toward this service of
Vietcombank.
4.
Data analysis
The data gathered via the questionnaires are recorded and coded into
Statistical Package for Social Science (SPSS) software.
The data are analysed using two statistical techniques. These techniques
are multiple regression analysis, and analysis of variance (ANOVA). The use of
multiple regression analysis is to help test the conceptual framework or model,
whiles the analysis of variance is help compare the results with the customers’
demographic characteristics.
The collected data are processed with statistical software SPSS version
16.0. The consistency coefficients measured by Cronbach’s Alpha for scaling
test and Exploratory Factor Analysis (EFA) are used.
The scale is assessed by the reliability value through Cronbach's alpha
coefficient. Cronbach’s alpha is a coefficient that indicates how well the items in
- 23 -
a set are positively correlated to one another. This Cronbach's alpha coefficient is
expected to be higher than 0.7 and total variable correlation is over 0.5. The closer
the Cronbach’s alpha is to 1, the higher the internal consistency reliability of the
research instrument. After that EFA (Exploratory Factor Analysis) is used for
factor analysis to examine the appropriateness of the factor analysis.
The next step is using regression analysis and building Linear Regression
Equation to explain the relationship between Customer Satisfaction and Service
Quality factors.
Through data analyzing process, we can find out whether five hypotheses
mentioned aboved would be accepted or rejected. From that result, we would
explore which of among five dimensions had significant relationship with
customer’s satisfaction of internet banking usage.
Following is Coding table of 22 main measurement variables matching
with 22 survey questions in questionnaire:
Table 2. Independent variables (indicators)
CODE
WD1
WD2
WD3
WD4
CS1
CS2
CS3
CS4
ITEMS
WEB DESIGN
Interface of website is impressive
Display is well organized and easy identified
Easy logging on online portal
Easy understanding which button to be clicked for the next step
CUSTOMER SERVICE
Offer sufficiency,wide range of services & utilities
Sufficient and real time financial information provided
Validity of the hyperlinks on the bank's portal
Quickness of the Web page on bank's portal site loading
SEQUENCE
NUMBER
1
2
3
4
5
6
7
8
- 24 -
CS5
CS6
CS7
CS8
AS1
AS2
AS3
PT1
PT2
PT3
PT4
IP1
IP2
IP3
Easy completion of online transactions
Not occurring errors when perform services
Prompt reception of responses to customer request
Ability to guide customer to resolve problems
ASSURANCE
High reliability and credibility of transactions
Protection/security of customer transaction data
Feeling of relief of customer to transact on internet banking
PREFERENTIAL TREATMENT
Reasonable fees in transfer transactions
Reasonable fees in other payment and request
Offering preferentially lower fees/ rates and charges in billing
payment
Offering preferential policies for online transactions
INFORMATION PROVISION
Complete and sufficiency of the transaction information
Accuracy of the online transaction process of the bank
Easy updating new preferential policies & promotions
9
10
11
12
13
14
15
16
17
18
19
20
21
22
- 25 -
CHAPTER FOUR - DATA ANALYSIS AND RESULT
1. About Vietcombank Binh Tay Branch
Vietcombank Binh Tay Branch (VCB Binh Tay) was established by
decision 207/QD-TCCB of the Board of Foreign Trade Bank of
Vietnam’s
Chairman, began operation on 10 Jan. 1998 on the inheriting and upgrading
from Binh Tay transaction office of VCB Ho Chi Minh. The main office located
in Hậu Giang street, District 6, HCMC. This is a densely populated region in the
southwest, with the majority of Chinese-Vietnamese people who own small and
medium businesses.
In the early days, human resource of VCB Binh Tay was limited in
only 47 people operating in eight departments. However, up to now, the number
has increased to 160 employees in eleven departments at its main office and five
transaction offices included. The five transaction offices are allocated
surrounding Ho Chi Minh City center and in some districts that have potential
economic development in the area of Ho Chi Minh City.
The organizational structure of VCB Binh Tay is shown in Figure 2
below:
- 26 -
Figure 2. Organization Structure of VCB Binh Tay
DIRECTOR
HR & Admin
Depart.
DEPUTY
DIRECTOR 1
DEPUTY
DIRECTOR 2
Research &
Synthesize Depart.
Accounting
Department
Credit Service
Department
IT Department
Internal Supervised
Department
Treasury
Department
Transaction Office 1
Card Payment
Department
Transaction Office 2
Debt Management
Department
Transaction Office 3
Trade Service
Department
Transaction Office 4
Personal Services
Department
Transaction Office 5
Source: Vietcombank Binh Tay profile
- 27 -
From a small scale bank, through many years of efforts in development,
VCB Binh Tay now has achieved some certain positions in customer’s mind and
the number of loyal customers also increases day by day. Despite of competition
from other commercial banks in the area, especially the joint-stock commercial
banks, operation performance of VCB Binh Tay is still bright and in sustainable
development. Increasing total revenue yearly would be the most pratical
evidences for that statement.
Table 3. Total revenue of VCB Binh Tay from 2009-1st half 2012
YEAR
2009
2010
2011
(Unit: VND)
1st half 2012
TOTAL
REVENUE
174,181,608,842
270,955,532,086
371,689,268,370
176,223,000,235
Source: VCB Binh Tay Income statement from 2009 to 1st half 2012
From 2009 to 2010, total revenue increased 55.6% and in the next year
2011, the number exceeded 37.2%. Due to some problems related to overdue
debts, the growth rate of 2011 declined a little bit in comparison with the year
2010. Within the first half of 2012, total revenue had reached more than 52.6%
total revenue of the previous year. The development seems relatively stable.
- 28 -
Figure 3. Total revenue of VCB Binh Tay from 2009 to1st half 2012
400,000,000,000
350,000,000,000
300,000,000,000
250,000,000,000
200,000,000,000
150,000,000,000
100,000,000,000
50,000,000,000
0
2009
2010
2011
1st half 2012
Source: VCB Binh Tay Income statement from 2009 to 1st half 2012
Regarding the Internet Banking of VCB Binh Tay, this is a utility service
introduced to customers since 2001. With many integrated utilities, this service
brings to users extreme convenience and high effectiveness in making transaction
without coming to any transaction office of Vietcombank . Due to its advantages,
Internet banking is increasingly popular and the number of users therefore also
increases day by day.
As annual reports, the number of Internet banking users at VCB Binh Tay
in 3 recent years are shown below:
Table 4. Total number of new I-Banking users of VCB Binh Tay from 2011-2013
YEAR
2011
2012
2013
3.424
3.880
5.399
No. of new
I-Banking users
Source: VCB Binh Tay annual report
- 29 -
Figure 4. Total number of new I-Banking users of VCB Binh Tay 2011-2013
6000
5000
4000
3000
2000
1000
0
2011
2012
2013
Source: VCB Binh Tay annual report
Data from the table show that from 2011 to 2012, new registrations on
Internet banking service increased 13.3% and got significant increase at 39.1% in
2013. That is a speaking number. In today’s busy life, what can help people save
time but still do things effectively, it will be easily accepted. Undoubtedly, trends
of using Internet banking service will continue to increase and soon become basic
service in banking section in the future.
- 30 -
2.
Sample demographics
Table 5. Respondent Characteristics
Descriptions
Frequency Percent %
Male
136
64.5
Female
75
35.5
Under 25 yrs old
45
21.3
25- 35 yrs old
71
33.6
36- 45 yrs old
57
27.0
46- 55 yrs old
29
13.7
Over 56 yrs old
9
4.3
High school
11
5.2
Intermediate
13
6.2
College
47
22.3
University graduated
127
60.2
Post graduated
11
5.2
Others
2
0.9
Below 5 millions
23
10.9
5- 10 millions
88
41.7
10- 20 millions
61
28.9
Over 20 millions
39
18.5
Gender
Age
Education
Income/ month (VND)
- 31 -
Single
75
35.5
Married
125
59.2
Others
11
5.2
Less than 1 year
48
22.7
Experience using Internet
1-2 years
58
27.5
banking
2-3 years
67
31.8
More than 3 years
38
18.0
Marital status
Source: Author’s own calculation
The study involved respondents with varied background characteristics. In
terms of gender, 136 representing 64.5% of the respondents were males and only
75 representing 35.5% were females.
The age statistics indicated that the least age groups were those above 56
years old which was represented 4.3% of the respondents sampled for the study.
Additionally, the highest age groups from the study were those between 25-35
years old. These age groups were made up of 71 respondents which represented
33.6% of the respondents. The highest age group was followed by those between
36- 45 years old, group below 25 years old and those between 46-55 years old.
This age group represents 27.0%, 21.3% and 13.7% of the respondents
respectively. This implies that majority of them were in the economically active
population (25 – 45 years).
Furthermore, the marital status of respondents shows that 75 were single,
125 were married and 11 in other status (separated/widow). Percentage of 35.5%
were single, 59.2% were married, 5.2% were in other marital status.
- 32 -
In terms of education, all respondents were educated with majority of
them. The most represented educational levels were those with a Bachelor degree
which was made up of 127 respondents or 60.2% of the respondents. This was
followed by 47 respondents representing 22.3% who finished education in
college, 13 respondents representing 6.2% who were at intermediate education
and 11 respondents representing 5.2% who were with a Masters degree. The least
represented educational level were those with basic education who were 2 in
number or 0.9% of the respondents.
In terms of monthly income, few of them, 23 of the respondents or 10.9%
earned below 5 millions VND, 88 respondents or 41.7% earned between 5- 10
millions VND, while 61 respondents or 28.9% earned between 10- 20 millions
VND and 39 respondents or 18.5% of them earned over 20 millions VND a
month.
Figure 5. Age ranges
AGE
14%
4%
21%
Under 25
25-35
27%
36-45
34%
46-55
Over 56
Source: Author’s own calculation
- 33 -
Figure 6. Income ranges
45
40
35
30
25
20
15
10
5
0
41.7
28.9
18.5
10.9
below 5
millions VND
5- 10
millions VND
10- 20
millions VND
over 20
millions VND
Source: Author’s own calculation
In terms of length of usage of the internet banking facility, 31.8% (67
respondents) indicated that they have been using the facility for the between 2-3
years, this was followed by 27.5% (58 respondents) who indicated that they have
been using the facility for the past 1-2 years. In addition to the above, 22.7% (48
respondents) indicated that they have been using internet banking for less than a
year and 18% (38 respondents) indicated that they been using the facility for more
than 3 years.
Most of respondents have been using internet banking less than three years
and were in the age raging from 25 to 45. It means that internet banking users are
mostly in working age and have income from 5 to 20 millions VND per month.
This is the group of customers that VCB Bình Tây should pay much attention in
order to sell services as well as improve service quality based on their feedbacks.
- 34 -
They are direct users of services, they have experience and they know exactly
what a customer requires for a service so their ideas are really worthy.
3.
Assessing scale and research model
Scale was assessed by Cronbach's Alpha reliability coefficient and
Exploratory Factor Analysis (EFA) from the collection of the sampled data. The
assessment aims to reduce the variables to make more significant and refect
variables do not match but keep the content of initial variables.
3.1. Assessing scale reliability by Cronbach’s Alpha
The researcher used a reliability analysis in order to identify the variable
which is reliable to make correlation analysis. Subsequently, the Cronbach’s alpha
is employed to determine the reliability of the measurement in this study.
Cronbach's alpha is a measure determining the internal consistency or average
correlation of items in a survey instrument to gauge its reliability. It tests mutual
correlation and therefore giving information on reliability of the scale. Besides,
using the function 'Cronbach’s alpha if item deleted' help to examine whether
deleting an item gives a better scale.
In Cronbach’s alpha test, items with low reliability alpha, which is less
than 0.5, will be dropped. According to Sekaran (2003), reliabilities less than 0.6
are generally considered to be poor, those in the range 0.7 are to be accepted and
those over 0.8 to be good.
- 35 -
Table 6. Cronbach’s Alpha of independent variables scales
Variables
Corrected item Total
Cronbach’s Alpha if item
Cronbach’s
Correlation
Deleted
Alpha
1. Web Design
WD1
.766
.851
WD2
.729
.865
WD3
.769
.850
WD4
.751
.857
.888
2. Customer Services
CS1
.654
.713
CS2
.559
.723
CS3
.594
.716
CS4
.108
.822
CS5
.598
.716
CS6
.205
.793
CS7
.662
.705
CS8
.702
.697
AS1
.630
.832
AS2
.713
.748
.763
3. Assurance
.833
- 36 -
AS3
.739
.724
4. Preferential Treatment
PT1
.622
.854
PT2
.752
.796
PT3
.758
.799
PT4
.688
.823
.857
5. Information Provision
IP1
.574
.727
.771
IP2
.635
.658
IP3
.609
.689
Source: Author’s own calculation
A Cronbach Alpha score greater than 0.7 show high internal reliability of the
scaled item (Nunnally and Bernstein, 1994). Results from the Table 6 show Cronbach’s
Alpha of all 5 variables are higher than 0.7, meaning that they are highly reliable.
However, by investigating the Corrected item Total Correlation, we can see that the
correlations of the two items CS4 (.108) and CS6 (.205) are smaller than 0.5 while all
other items correlate at 0.55 or better. Finally, by exploring Alpha if item deleted, we can
see that the reliability of the scale would increase if either of these two items were to be
deleted. When the alpha value is higher than the current alpha with the item included,
deleting this item will improve the overall reliability of the exam. Thus, we would
probably delete these two items CS4 and CS6 from this exam.
- 37 -
Testing Cronbachs’s Alpha the second time without item CS4 we have result as
following. The Cronbach’s alpha of Customer Services variable increases from .763 to
.822
Table 7. Cronbach’s Alpha after rejecting CS4 item
Reliability Statistics
Cronbach's
Alpha
N of Items
.822
7
Item-Total Statistics
Scale Mean if
Scale
Corrected
Cronbach's
Variance if
Item-Total
Alpha if Item
Correlation
Deleted
Item Deleted Item Deleted
CS1
19.26
14.536
.683
.783
CS2
19.18
14.558
.583
.795
CS3
19.16
14.123
.628
.788
CS5
19.20
14.094
.646
.785
CS6
18.76
15.763
.195
.879
CS7
19.17
13.739
.713
.774
CS8
19.15
13.634
.708
.774
- 38 -
Continue to test the reliability of Customer Service scale by rejecting item CS6,
result given is much better with Cronbach’s alpha now is .879, suggesting that the items
have relatively high internal consistency.
Table 8. Cronbach’s Alpha after rejecting CS6 item
Reliability Statistics
Cronbach's
Alpha
N of Items
.879
6
Item-Total Statistics
Scale Mean if
Scale
Corrected
Cronbach's
Variance if
Item-Total
Alpha if Item
Correlation
Deleted
Item Deleted Item Deleted
CS1
15.71
11.730
.682
.859
CS2
15.63
11.748
.580
.875
CS3
15.61
11.287
.639
.866
CS5
15.65
11.134
.684
.858
CS7
15.62
10.714
.775
.842
CS8
15.60
10.660
.760
.844
- 39 -
Cronbach’s alpha score increases means the correlations between the
items increase when we dropped 2 items CS4 and CS6 out of the test. It means
these two items have low internal consistency in the scale. Deleting them even
improve the overall reliability of the scale. It can be explained that “Quickness of
the web page on bank’s portal site loading”(CS4) and “Web page not occur errors
when perform services”(CS6) depend on the Internet packages customers
registered and/or the time they accessed network so it can be removed from set of
items.
After deleting the two items CS4 and CS6, the results show us that all the
variables have corrected item total correlation are more than 0.5 and Cronbach’s
alpha scores are all higher than 0.7. It means the reliability of the scales is
accepted. The scale reliability of Web design variable is highest with Cronbach’s
alpha is .888 while the number is lowest at .771 in the scale of Information
provision variable.
3.2.Descriptive Statistics
The customer satisfaction of Internet banking service quality is measured
through 22 questions based on 5 factors which are Web Design, Customer
Services, Assurances, Preferential Treatment and Information Provision.
- 40 -
Table 9. Descriptive Statistics
Std.
N
Mean
Deviation
DESIGN
211
3.80
.985
CUSTOMER_SERVICES
211
3.17
.696
ASSURANCE
211
3.35
.723
PROMOTE
211
3.56
1.051
INFORMATION_PROVIDE
211
3.78
.743
WD1- Interface of website is impressive
211
3.52
1.144
211
3.82
1.125
211
3.64
1.143
211
3.55
1.135
211
3.05
.745
211
3.13
.835
211
3.16
.867
WD2- Display is well organized and easy
identified
WD3- Easy logging on online portal
WD4- Easy understanding which button to be
clicked for the next step
CS1- Offer sufficiency,wide range of services &
utilities
CS2- Sufficient and real time financial information
provided.
CS3- Validity of the hyperlinks on the bank's
portal
- 41 -
CS4- Quickness of the Web page on bank's portal
211
3.42
1.290
CS5- Easy completion of online transactions
211
3.11
.854
CS6- Not occurring errors when perform services
211
3.55
1.176
211
3.15
.852
211
3.16
.874
211
3.64
.840
211
3.20
.811
211
3.29
.786
211
3.18
1.307
211
3.64
1.196
211
3.65
1.091
211
3.29
1.252
211
4.03
.858
site loading.
CS7- Prompt reception of responses to customer
request
CS8- Ability to guide customer to resolve
problems
AS1- Reliability and credibility of transactions
AS2- Protection/security of customer transaction
data
AS3- Feeling of relief of customer to transact on
internet banking
PT1- Reasonable fees in transfer transactions
PT2- Reasonable fees in other payment and
request
PT3- Offering preferentially lower fees/ rates and
charges in billing payment
PT4- Offering preferential policies for online
transactions
IP1- Complete and sufficiency of the transaction
information
- 42 -
IP2- Accuracy of the online transaction process of
211
3.68
.889
211
3.62
.855
the bank
IP3- Easy updating new preferential policies &
promotions
Valid N (listwise)
211
Source: Author’s own calculation
According to the table 9, most of factors have been judged from “Totally
Disagree” to “Totally Agree”. In detail, the result of mean scores fairly high with
minimum is 3.05 and maximum is 4.03, which means customers judge service
quality of Internet banking at VCB Binh Tay pretty good. Especially, three
factors got highest score include “Accuracy of the online transaction process of
the bank “- 3.68; “- Display is well organized and easy identified”- 3.82;
“Complete and sufficiency of the transaction information the internet banking
portal provides”- 4.03 prove for high awareness of customers about factors that
they highly appreciated when making online transactions via VCB website.
However, the factor that has lowest Mean score is “Offer sufficiency,wide
range of services & utilities “- 3.05. VCB should take into account this aspect in
order to improve and obtain higher customers’satisfaction.
- 43 -
3.3.Exploratory Factor Analysis (EFA)
Furthermore, we further conducted the Bartlett’s Test of Sphericity and
Kaiser-Meyer-Olkin Measure (KMO) to examine the appropriateness of the factor
analysis.
Bartlett test of Sphericity was used to examine the correlation of the
different variable of the assumption and also whether conducting factor analysis
was appropriate. The KMO values in the range between 0.5 and 1 are acceptable
(0.550%). It
means five factors as categorized could explained more than 70 percentages of
variability of the variables. In other words, 70.539% of factors changes are
explained by valid observed variables (Hoang Trong & Chu Nguyen Mong
Ngoc 2005).
- 47 -
3.4.Correlations between variables
The correlations had been tested to know whether and how strongly pairs
of variables are related. Pearson’s correlation coefficient (r) is a measure of the
strength of the association between the two variables. In other words, it was used
to predict the cause-and-effect relations (two way interaction) between the two
variables.
If a Pearson’s score:
Is close to 0, this means that there is a weak relationship between your two
variables.
Is close to 1, this means that there is a strong relationship between your
two variables.
If sig. is less than 0.05 then the two variables have relationships to each other.
Table 13. Correlations
WD
WD
CS
AS
PT
IP
SAT
.192**
.414**
.235**
.316**
.464**
.005
.000
.001
.000
.000
211
211
211
211
211
211
.192**
1
.325**
.304**
-.024
.462**
.000
.000
.733
.000
211
211
211
211
Pearson
1
Correlation
Sig. (2-tailed)
N
CS
Pearson
Correlation
Sig. (2-tailed)
.005
N
211
211
- 48 -
AS
Pearson
.414**
.325**
.386**
.239**
.587**
Sig. (2-tailed)
.000
.000
.000
.000
.000
N
211
211
211
211
211
211
.235**
.304**
.386**
1
-.071
.448**
Sig. (2-tailed)
.001
.000
.000
.303
.000
N
211
211
211
211
211
211
.316**
-.024
.239**
-.071
1
.295**
Sig. (2-tailed)
.000
.733
.000
.303
N
211
211
211
211
211
211
.464**
.462**
.587**
.448**
.295**
1
Sig. (2-tailed)
.000
.000
.000
.000
.000
N
211
211
211
211
211
1
Correlation
PT
Pearson
Correlation
IP
Pearson
Correlation
SAT
.000
Pearson
Correlation
211
**. Correlation is significant at the 0.01 level (2-tailed).
The results in table show that Pearson’s values are almost positive which
stands for positive correlation between two variables. Dependent variable SAT
(Customer Satisfaction) had positive correlation with all other independent
- 49 -
variables. That is what we supposed in 5 hypotheses mentioned in the second part
of this study.
All other variables have relationships but not strong relationships, they
related in average level. There were negative values between two couples of
variables IP & CS and IP & PT showing that Information Provision (IP) factor not
have relationship with the two factors Customer Service (CS) and Preferential
Treatment (PT). Moreover, IP reached p > 0.05 in relationships with CS(p=0.7)
and PT(p=0.3). The test gave a predictive conclusion that the variable IP did not
correlate to CS and PT variables. However, we kept it because it still had
correlation with dependent variable SAT.
.
3.5. Hypotheses testing
In the next step, we conducted linear regression analysis to check the
relationships between the independent variables (WD, CS, AS, PT and IP) and the
dependent variable SAT. This was also to check whether these relationships have
statistical meaning. In other words we were testing the hypotheses.
- 50 -
Table 14. Coefficientsa
Model
Unstandardized
Standardized
Collinearity
Coefficients
Coefficients
Statistics
B
Std. Error
1 (Constant)
Beta
t
Sig. Tolerance
VIF
-.727
.294
.014
2.474
WD
.144
.044
.177 3.236 .001
.759 1.318
CS
.324
.062
.269 5.201 .000
.848 1.180
AS
.334
.065
.294 5.098 .000
.680 1.470
PT
.176
.042
.224 4.169 .000
.781 1.280
IP
.213
.058
.192 3.690 .000
.839 1.192
Findings in Table 14 show us that all five factors have Sig.< 0.05.
Therefore, the five hypotheses are accepted. In other words, the findings validated
hypotheses that:
H1: Web Design has positive impacts on customer satisfaction on Internet
banking service quality
H2: Customer Service has positive impacts on customer satisfaction on
Internet banking service quality
H3: Assurance has positive impacts on customer satisfaction on Internet
banking service quality
- 51 -
H4: Preferential Treatment has positive impacts on customer satisfaction
on Internet banking service quality
H5: Information Provision has positive impacts on customer satisfaction
on Internet banking service quality
Web Design (WD) factor has beta= .177 means when Web design
increases 1 point, Customer satisfaction increases 0.177 point. Similarly, when
each of factors Customer service, Assurance, Preferential Treatment and
Information Provision increases 1 point, then Customer satisfaction increases
0.269, 0.294, 0.224 and 0.192 point respectively.
Generally, five factors have rather equivalent impact on customer
satisfaction in using Internet banking service. Among five factors, Assurance has
highest standardized coefficient/beta 0.294 means in 100% impact of all five
factors on customer satisfaction, Asuurance accounts for 29.4%.
3.6. Linear Regression Equation
Linear
Regression
Equation
explains
the
relationship
between
Customer Satisfaction and Service Quality factors. In this study, we finally
obtained equation as below:
Y= 0.294x1 + 0.269x2 + 0.224x3 + 0.192x4 + 0.177x5
In which:
Y denoted dependent variable Customer Satisfaction (SAT)
x1 denoted independent variable Assurance (AS)
x2 denoted independent variable Customer service (CS)
x3 denoted independent variable Preferential treatment (PT)
- 52 -
x4 denoted independent variable Information provision (IP)
x5 denoted independent variable Web design (WD)
According to the equation above, it is easy to clarify that Assurance
(β=0.294) is the highest influence factor on customer satisfaction on Internet
banking service quality at VCB Binh
Tay,
following by Customer service
(β=0.269), Preferential treatment (β=0.224), Information provision (β=0.192).
The factor has lowest impact is Web design (β=0.177).
R Square indicates how much of the variance in the dependent variable
(customer satisfaction) is explained by the 5 independent variables as Web
Design, Customer service, Assurance, Preferential Treatment and Information
Provision. In this case, the model has R2= 0.536 means that 53.6% variation of
customer satisfaction can be explained by the 5 dimensions.
Table 15. Model Summary
Model
1
R
.732a
R Square
.536
Adjusted R
Std. Error of
Square
the Estimate
.525
.550
a. Predictors: (Constant), IP, CS, PT, WD, AS
3.7. Anova Analysis
In the ANOVA (Analysis of variance) table, it demonstrates how well the
model fits the data collected. The model has Sig. is 0.000 ([...]... positive impact on customer satisfaction in internet banking Hypothesis 3 (H3): Assurance of Online Service has positive impact on customer satisfaction in internet banking Hypothesis 4 (H4): Preferential Treatment of Online Service has positive impact on customer satisfaction in internet banking Hypothesis 5 (H5): Information Provision of Online Service has positive impact on customer satisfaction in internet. .. internet banking on customer satisfaction in Vietnam is yet to be examined as few studies have addressed this issue This study thus aims to fill the gap in the literature by focusing on the impact of internet banking service quality on customer satisfaction with a case study of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) at Binh Tay Branch 2 Rationale for the study The aim of this... bank statement or manually track your ATM and paper checks At an advanced level internet banking is called transactional online banking, because it involves the provision of facilities such as accessing accounts, transfer of funds, and buying financial products or services online (Sathye, 1999) The terms internet banking and online banking are often used in the literature to refer the same things Internet. .. traditional banks’ market share, because it neutralizes so many of their competitive advantages in having a traditional branch bank network - 11 - By offering internet banking services, traditional financial institutions seek to lower operational costs, improve consumer banking services, retain consumers and expand share of customer Internet is the cheapest delivery channel for banking products as it allows... ease of use In reality, customers have different expectations and requirements 4 Objectives The study aims at enriching the knowledge and understanding of factors affecting customer satisfaction of internet banking service in Vietcombank Specifically, the main objectives of the study are: - To identify what main factors of internet banking service impact customer satisfaction - To evaluate the extent of. .. these factors impact customer satisfaction in internet banking service quality? -4- 3 What is the level of customer satisfaction towards the quality of Vietcombank online banking service? 6 Scope of the study The study concentrates on customer attitude and their satisfaction level of using internet banking services provided by Vietcombank Due to time, resource constraints, the author could not carry... their branch networks and downsize the number of service staff Thus, contemporary banks now regard the internet channel as equally important to traditional channels of branches, automated teller machines (ATM), telephone banking and call centers (Gartner, 2003) In the new banking environment, internet banking is increasingly managed as an operational azctivity and an important element of a multi-channel... Guinali validation and effects on customer is a service, assurance and order management consumer Perceived quality influences on satisfaction and web satisfaction; and that satisfaction site loyalty” 8 design, quality influences on consumer loyalty “Measuring the 2010 Ho and Lin There are five dimensions and 17 Service Quality of items in the measurement scale Internet for measuring the service quality... provision of various banking products and services like bank account management, electronic bill payment and financial advice over the Internet Mukherjee and Nath (2003) describes Internet banking as a type of banking activity through which consumers can perform banking transactions such as checking account balances and making payments via telecommunication network Internet banking is a process of innovation... of their impacts on customer satisfaction about internet banking service quality - To identify the level of satisfaction of customers towards Vietcombank internet banking service 5 Research Questions: In order to achieve those 3 objectives, this study aims to answer the following research questions: 1 What are the major factors affecting to customer satisfaction in using internet banking service? 2 ... - 25 - CHAPTER FOUR - DATA ANALYSIS AND RESULT About Vietcombank Binh Tay Branch Vietcombank Binh Tay Branch (VCB Binh Tay) was established by decision 207/QD-TCCB of the Board of Foreign Trade... focusing on the impact of internet banking service quality on customer satisfaction with a case study of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) at Binh Tay Branch. . .IMPACT OF INTERNET BANKING SERVICE ON CUSTOMER SATISFATION IN VIETCOMBANK A CASE STUDY OF VIETCOMBANK BINH TAY BRANCH In Partial Fulfillment of the Requirements of the Degree of MASTER OF
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