The Analysis of Customer Satisfaction about ATM Service of BIDV in Ha Giang Province Vietnam

Transcription

1 Department of Business Administration I-Shou University Master Thesis The Analysis of Customer Satisfaction about ATM Service of BIDV in Ha Giang Province Vietnam Advisor: Dr. Tsung-Kuang E. Ma Co-Advisor: Dr. Tran Van Trang Graduate Student: Nguyen Thi Trung Tam July 2014

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3 Acknowledgements The study is completed with strong supports from the people in BIDV Ha Giang as they allowed me meet the customers who are using ATM services of the bank. Additionally, I also received strong supports from my advisors from I-Shou University as they helped me to understand better about the research topic. Finally, I would like to send thankfulness to my husband and my son as they are considered as bringing efforts that allow me to accomplish the study in time. i

4 Abstract Vietnam economy has been blooming recently with many achievements and outstanding economic growth rate. It is remarked by the development of financial sectors whether there are more than 30 banks are now operating in Vietnam and providing banking services to individual and corporate customers. It is worth to denote that many banks in Vietnam are now taking into consideration on increasing their network coverage through ATM machines. The primary function of ATM machines is to provide payment and withdrawn solutions for individual customers and local banks are now investing intensively on their ATM network in order to gain competitive advantage and so competing effectively with other banks. In this context, the study is set to focus on ATM operations of Bank for Investment and Development of Vietnam, Ha Giang Branch (BIDV Ha Giang) with an objective of identifying the level of customer satisfaction with ATM services offered by the branch. To do that a sample of customers is taken with sample size of 384 individuals. Data analysis results show that the element namely the perceived BIDV Ha Giang s ATM service is impacting positively to customer satisfaction. This element will then be extract to 4 sub factors which are the promptness of card delivery, the performance of BIDV ATM, the service quality of BIDV ATM personnel, and the quality of notes. The goal of the study is to discover the impact caused by those factors to customer satisfaction and those relationships are statistical significant at 95 percent of confidence interval. Keywords: Customer satisfaction, ATM, customer service, bank, service quality ii

5 Table of Contents Acknowledgements... i Abstract... ii List of Tables... v List of Figures... vi Chapter 1 INTRODUCTION Research background Problem Statement and Research Objectives Research Significance... 4 Chapter 2 LITERATURE REVIEW ATM services in banking sector Customer Satisfaction Factors impacting on customer satisfaction in ATM services Conceptual research model and summary of hypotheses... 9 Chapter 3 METHODOLOGY Research Design Sampling Design and Data Collection Secondary data Primary data Samples Measures Data Analysis Chapter 4 RESULTS AND DISCUSSIONS Demographic description Descriptive statistical analysis Independent T-test and ANOVA analysis T-Test analysis for gender difference ANOVA analysis for age difference Independent T-test analysis for marital status difference ANOVA analysis for education difference iii

6 4.4 Linear regression and hypothesis testing Chapter 5 CONCLUSIONS AND SUGGESTIONS Conclusions Suggestions Adjusting the bank s services to be more customers centric Differencing the bank s services to be more innovative and more competitive Providing additional activities that the bank should do to be more customers centric Bibliography Appendix A Questionnaire Appendix B Output Data Analyse iv

7 List of Tables Table 4.1: Demographic information of respondents Table 4.2: Descriptive statistical results Table 4.3: Independent t-test analysis for gender difference Table 4.4: ANOVA analysis for age difference Table 4.5: Independent T-test analysis for marital status difference Table 4.6: ANOVA analysis for education difference Table 4.7: Linear regression results v

8 List of Figures Figure 1.1: Card ownership in Vietnam (Source: Cimigo, 2009)... 1 Figure 1.2: ATM Using (Source: Nielsen, 2010)... 2 Figure 2.1: The initial conceptual research model Figure 3.1: The research onion Figure 4.1: BIDV s physical assets vi

9 Chapter 1 INTRODUCTION The first chapter is prepared with an objective of providing background information of Vietnam banking sector with update about number of banks and competitive level in this sector. Such general information is considered as basis for formulating current problem of ATM services at BIDV Ha Giang, then are research objectives and research questions. This chapter also consists of paragraph for scope and significance of the study. 1.1 Research background Vietnamese retail banking industry or Vietnamese consumer banking industry has been considered growing rapidly recently. According to the report of Vietnam Financial Review in 2011, there is more than 20% of Vietnam s population having bank account. However, only a half of them have the consumer lending. This report also reveals the increase of card payment utilization. Through the statistics figure of Cimigo (2009), the number of card ownership will be increased from 1% to 7% in term of future intension. The figure below also shows that most of the customers in Vietnam has not aware well about the utility of card so that they prefer to keep cash rather than injecting their cash into banking accounts. Figure 1.1: Card ownership in Vietnam (Source: Cimigo, 2009) The development of retail banking services can be seen through the number of ATM using that is growing through the years. According to Nielsen s survey in July 2010, the Vietnamese 1

10 people often utilize the ATM services for 2-3 times per week, accounting for more than 50% of the total respondents in the survey. The author believes that the consumer behavior of Vietnamese people is changing, from the cash-based to credit-based (Vietnam Financial Review, 2011). Figure 1.2: ATM Using (Source: Nielsen, 2010) The increase of number of customers who are willing to use ATM services requires local banks in Vietnam have to invest more on their information technology based solutions in order to support better their customers on their daily transactions. It is also worth to denote that the application of information technology in banks have been providing competitive advantage to them in the context of it will reduce the time of transaction compared to traditional banking method. For example, the customers now do not need to go directly to transaction offices and ask the tellers for withdrawing money or transferring money to other banking accounts. On the other hand, they have just to go to ATM machines and conduct these activities. This, furthermore, reduces operating costs for the banks as well as supporting responsively to customers needs. 1.2 Problem Statement and Research Objectives Since the number of people using ATM services is being increased at rapid growth rate, the 2

11 need for Bank for Investment and Development of Vietnam, Ha Giang Branch (BIDV Ha Giang) to evaluate how its customers satisfy with the bank services is also being increased. In order to understand the level of customer satisfaction with the bank s ATM service, the bank has to establish the framework to measure its customer satisfaction. However, currently BIDV Ha Giang has not established the framework for measuring customer satisfaction in its ATM services, thus the bank does not have material of how to improve ATM services in the long run. It is more critical task when Ha Giang province is now being covered by many banks who also want to invest their resources on expanding their ATM services due to Ha Giang Province has border check with China and there are a lot of commercial transaction between people and organizations in this location. Hence, the need for ATM services is becoming critical in Ha Giang Province. Based on current problems in ATM services at BIDV Ha Giang, research objectives are formulated as below: To critical examine theoretical relationship between customer satisfaction and four factors, namely promptness of card delivery, the performance of bank s ATM services, the service quality of bank personnel, and the quality of notes that all are extracted from only one parent factor named The perceived BIDV Ha Giang s ATM service quality To investigate the impacts of the perceived BIDV Ha Giang s ATM service quality, or should be more detailed, the impact of promptness of card delivery, the performance of BIDV ATM, the service quality of BIDV ATM personnel, and the quality of notes to customer satisfaction at BIDV Ha Giang To provide recommendations to improve ATM services at BIDV Ha Giang Then, research questions will be: 3

12 What are theoretical relationship between customer satisfaction and other factors? How to measure the impacts of customer satisfaction at BIDV Ha Giang? What are recommendations that help to improve ATM services at BIDV Ha Giang? Due to the time constraint, this study cannot be conducted at bank-wide level but branch level. It means that the scope of this study is narrowed in BIDV Ha Giang only. Furthermore, ATM services are generally set up to support individual customers rather than corporate ones so that this study is also set to individual customer satisfaction. Additionally, there are also many factors can impact on customer satisfaction on ATM services of a bank but five factors are chosen, including promptness of card delivery, the performance of bank s ATM services, the service quality of bank personnel, and the quality of notes. 1.3 Research Significance The study is significant to director of BIDV Ha Giang who is taking responsibility of maintaining performance of ATM services as commitment with operational management and financial management department at headquarter at the beginning of the year. It is important due to lower customer satisfaction may lead to significant reduction in number of customers who want to bank with BIDV Ha Giang through its ATM machines network. Furthermore, this study is also significant to other academic researchers who want to develop their own studies in customer satisfaction in banking services. It is worth to denote that the concept of customer satisfaction is different across economic sectors so that those who are developing studies on customer satisfaction in banking services will be benefited by results of this study. On the other hand, they can use the results of this study as secondary data to validate their key findings. 4

13 Chapter 2 LITERATURE REVIEW According to Saunders et al. (2007), literature reviews is the context of which the researchers will state and examine concepts and theories that are relevant to their studies topic and social phenomenon. This study about customer satisfaction on ATM services of BIDV Ha Giang is derived with objectives of measuring the impacts of promeptness of card delivery, the performance of bank s ATM services, the service quality of bank personnel, and the quality of notes to customer satisfaction. 2.1 ATM services in banking sector ATM services or Automated Teller Machine is known as primary banking services that have been affecting modern banking activities today. Hailey (1975) defines ATM as machine of which it will reduce the operating cost for banks in the context of the customers can carry some basic banking demands by themselves or without going to transaction office of the banks. Another definition from ATM services is found from the study of Guile and Quinn (1988) whether an ATM services is known as electronic telecommunication between the banks and their customers to perform financial transactions. In another aspect, an ATM service is belonged to customer services activities so that it will consist of all characteristics of customer services (Hillier, 2002). Lovelock (1996) defines customer services as combination of activities performed by a firm in order to deliver utilities to their customers. On the other hand, Ostrom and Iacobucci (1995) said the customer service is strongly related to the customer satisfaction and dissatisfaction as relative judgment that takes into consideration both the qualities and the benefits obtained through a purchase as well as the costs and efforts borne by a customer to obtain that purchase (Ostrom and Iacobucci, 1995, p. 17). During the time, there are a lot of scholars mentioned to how to measure and evaluate the customer service and customer satisfaction. Parasuraman, et al. 5

14 (1994) refer to satisfaction as a function of a buyer s overall assessment of service quality, product quality, and price. However, Power (1988) suggests that customer services should be measured through the product delivery, a sales presentation that address the customers problem, support after sales. Other scholars such as Dion et al. (1992) defines customer service in terms of the changes in customers expectations in an supply chain of a company through a just-in-time (JIT) purchasing environment.it is clear to say the customer service is one of the most important of every organization today. However, there are not so many organization can provide the best quality of services to their customer 2.2 Customer Satisfaction Customer satisfaction is core concept in many businesses today, especially to services business whether higher customer satisfaction will impact directly to the success of delivering services and benefits of firms in the long run (Berry et al., 1988). It is showing through the fact that many firms today have been investing intensively into their operational activities and supportive functions in order to increase their customer satisfaction (Kotler and Keller, 2009). In series of initiatives to improve customer satisfaction, the need for finding definition for customer satisfaction is known as essential one. During the time, there are many definitions that have been taken place for customer satisfaction by different researchers and marketers. For example, Schiffman and Karun (2004) define customer satisfaction as perception of individuals into products and services offered by a firm in comparison with his or her expectations. Agbor (2011), however, provide a definition for customer satisfaction as feeling of pleasure during the process of utilizing products or services of a firm. Other researchers support those definitions previously as they also thought that customer satisfaction is constructed from cumulate process of process that the customer experiences particular products or services (Giese and Cote, 2000; Fornell, 1992; Tse and Wilton, 1988). However, some others find different definition for customer 6

15 satisfaction as Sureshchander et al. (2002) imply customer satisfaction as personal responses as they are formulated during post-purchase or post-consumption of people at a certain time. It means that customer satisfaction may be different during the time; the customer may not be satisfied with products or services of firms right after they purchase them but then, they may be satisfied if utilizing those products or services can make them to be happy. In summary, customer satisfaction can be stated in different definitions and so it is impossible to find widen acceptance for this term s definition. However, customer satisfaction is described as customers happiness or angry on particular products or services during the time when they experience with these products or services in a nutshell. It is also worth to highlight that customers happiness is recognized as a sign of customer satisfaction and it is always positioned as essential thing to almost firms in global world today. 2.3 Factors impacting on customer satisfaction in ATM services The promptness of card delivery is defined as the time horizon of which ATM card is delivered from the bank to its customers (Islam et al., 2007). It is measured by hours or days and it is equaled to the time of which ATM order form is processed and approved to the day when ATM card is on the hand of the customer.pahwa and Saxena (2011) assert about card delivery process of which the customers, firstly, go to transaction offices of the bank in order to register for using ATM services. Then, the banks receive those order and then if all requirements are qualified, an plastic card with personal identification number (PIN) will be send physically to customers address. In case of card delivery time is too long, the customers may not be happy with ATM services of the bank, leading to the unhappiness of the customers (Issahaku, 2013). The performance of ATM services refers to the system quality definition (Islam et al. (2007). According to Delone and McLean (1992), system quality is defined as the operational characteristics of an electronic software that is ensured efficiency and cost saving.findings 7

16 from Indovina et al. (2008) show that performance of ATM is depended on how the banks optimize process of their ATM services. Process is determined as the process of how the firms provide their products and services to the customers and how they undertake their products and services are significant to their customers (Lin, 2011). The importance of process is increased in servicing business whether such business line is perishable or it means that the services cannot be stored or stocked and if the firms cannot optimize their process of manufacturing and selling their products and services to the customers they cannot be claim for such failure, leading to the deterioration in business performances. Gronross (1994) identifies that marketers today needs to take into account the role of process of which it cannot be treated as one way process but interactive process, meaning that when the firms design a process to sell their products and services to target customers, they have to ensure such process allow them to evaluate the performances of products and services as well as after-sale services from the customers point of view. Service quality of bank s ATM personnel is referred to the quality of work that is carried by employees of the bank (Kumbhar, 2011; Islam et al., 2007). Modern marketing theory highlights the importance of firms personnel in delivering products and services to customers. In another context, personnel is summarized as all people who are involved in the process of manufacturing product, selling product, and after-sale servicing (Lin, 2011). It means that people factor primarily consists of all employees of the firms. It is also stated that the employees play the critical role to success of products and services when they are sold to the market because of the employees directly influence on the customers perception on products and services as well as the image of the firms (Dhiman and Sharma, 2009; Dhiman and Yashoda, 2005). The quality of notes refers to the information accuracy in the notes returned to the customers after they utilize ATM services (Islam et al., 2007). Information accuracy refers to the quality of the information attracted from the system that the information should be reliable, 8

17 comprehensive, and informative. DeLone and McLean (1992) identify that the quality of information system will help the firm to reduce operating costs though system quality. It is not denied that higher information technologies applied, the higher precise in information provided to customers and so higher service quality. In banking environment, when the customers make transaction through ATM, they always desire their transactions are stated clearly and precisely. To increase the customer satisfaction, the banks have to ensure that information about customers transaction on ATM machines is detail as well as precise (Islam et al., 2007). Additionally, when the customers withdraw money from ATM, they also expect that the quality of cashin high quality as they use those to make daily transaction such as purchasing stuffs in super market or shopping centers (Kumbhar, 2011). In the case study of BIDV Ha Giang, it is worth to denote that people in this province are prefer to use cash in their daily transactions. It is explained by the fact that most of Vietnamese people do not know so much about card payment and there are not so many banks in Vietnam can offer good card payment system for their customers. In this context, the higher quality of cash that is withdrawn from ATM machines will help the customers to make their transaction easier and so they will be happy with ATM services of the bank. 2.4 Conceptual research model and summary of hypotheses The conceptual research model is set as below: 9

18 The perceived BIDV Ha Giang s ATM service quality H2 Customer satisfaction of BIDV Ha Giang's ATM services H1 The customer s demographic characteristics Figure 2.1: The initial conceptual research model Then the hypothesis and sub-hypothesis will be stated as below: H1. There is a significant relationship between the customers demographic characteristics and perception of BIDV ATM service quality. H1a. Gender has a significant effect on customers perceived service quality of BIDV ATM. H1b. Age has a significant effect on customers perceived service quality of BIDV ATM. H1c. Marital status has a significant effect on customers perceived service quality of BIDV ATM. H1d: Education has a significant effect on customers perceived service quality of BIDV ATM. H2. The perceived BIDV service quality affects customer satisfaction positively. 10

19 Chapter 3 METHODOLOGY This chapter is about the choice of suitable research methodology for this study of proposing the method for analyzing customer satisfaction about ATM services of BIDV bank in Ha Giang province. As the study is belonged to academic research, it is worth to denote that the third chapters will be written upon on research onion structure of which it consists of research philosophy, research approaches, strategy, choices, time horizon, and techniques and methods of data collection (Saunders et al., 2007). Figure 3.1: The research onion (Source: Saunders et al., 2007) 3.1 Research Design The study is set to identifying the factors that are significant relationship with customer satisfaction on ATM services of BIDV Ha Giang. Hence, the central theme in this study is to detect causal relationship between customer satisfactions and the ATM services of which 11

20 customer satisfaction is determined as dependent variable and the service's factors are determined as independent variables, which are the promptness of card delivery, the performance of BIDV ATM, the service quality of BIDV ATM personnel, and the quality of notes. Furthermore, the study is also constructed by three research questions and they are begun with how and what of question type. The data for analyses is come from the customers opinion on BIDV's ATM services or it is not derived from the author s point of view so that it is less subjective. In those contexts, positivism research philosophy is chosen for this study. In this context, the study is conducted with deductive approach as it is based on the conceptual framework of the relationship between customer satisfaction and ATM services that is adapted from Prameela (2013). However, Prameela (2013) develops this framework in services firms, this framework should be validated by hypotheses in order to ensure that this model can be applied in banking services. Based on the key findings from actual relationship between customer satisfaction and ATM services in BIDV's case study, the author attempts to have an evidence of understanding chosen conceptual research model is reliable or not. Then, if there are any changes, the modification on Prameela (2013) theory will be conducted. Christensen et al. (1998), furthermore, indicate that survey can be classified into interview and questionnaire and the key difference between such two substances of survey research strategy is the researchers time and efforts. Survey of interview is recognized as high time consuming in case of large sample size because the researchers have to spend time to talk with each respondent (Silvermann, 1993). Furthermore, survey of interview is also limited in geographical distance if the researchers target to take interviews directly with the respondents. Furthermore, there are also a lot of information has been grown during the time of interviews so that the researchers have to take time to consolidate all respondents answers. Sometime, this work is overload due to the respondents cannot control what the respondent would say during the interview process 12

21 (McBurney and White, 2004). However, the advantage side of survey of interview is the concise of achieved information as the interviewers can recognize the opinions and answers of the respondents to survey questions are reliable or not (Burns and Grove, 1993). To overcome the weakness of high time consuming when conducting survey of interview in large sample, survey of questionnaire is utilized. On the other hand, it means that survey of questionnaire is the way of which the researchers prepare a questionnaire sheet and send to target respondents and ask them to fill their answers into this sheet; then, the respondents can return back their answers to the researchers (Saunders et al., 2009). However, survey of interview is less performance compared to survey of interview in the context of the researchers cannot validate the trustfulness in the respondents answers (Burns and Grove, 1993). In term of structure, survey of interview and survey of questionnaire have the different approach. Survey of interview is classified into structured interview, unstructured interview, and semi-structural interview (Nadia, 2009). Structured interview means that the interviewees will be asked by predetermined questions and there is no room for asking another stories outside what have already been outlined (Nadia, 2009). Unstructured interview refers to the interview process of which there is free talk between the researchers and the respondents about studied topic and there are not any predetermined questions. The objective of unstructured interview is to help the researchers to collect the aspects that researchers want to identify regarding studied social phenomenon and objectives. Semi-structural interview is considered as the combination among precedent ones whether the researchers prepare the questions for interview but there is enough time for freely discussion about researched topics. Survey of questionnaire, however, is categorized into close-ended questionnaire and open-ended questionnaire (Polit and Hungler, 1993). Close-ended questionnaire is determined as the list of questions with answers are pre-specified while open-ended questions are considered as those which have the bank line for the respondents to freely key-in their 13

22 opinions and answers inside. The application close-ended or open-ended questionnaire depends on the social phenomenon as if the social phenomenon is new and there is not any previous studies about it before, open-ended is more practical and vice versa (Burns and Grove, 1993). In this study, survey of questionnaire is utilized because of the author does not have much time to conduct survey of interview. Furthermore, the type of questions used in this survey is closed-ended questions. Additionally, the study is conducted with the application of positivism research philosophy so that the author needs data that is subscribed for mathematical and logical analyses. In this context, the author will also apply Likert 5 scale for each question whether [1] Strongly disagree, [2] Disagree, [3] Neutral, [4] Agree, and [5] Strongly agree. In this study, the author proposes using quantitative research method to analyze the relationship between customer satisfaction and ATM services of BIDV. Another supportive argument for this choice is the utilization of survey of questionnaire with specific customers at BIDV Ha Giang. Furthermore, the study is constructed by hypotheses and they will be validated by the statistical analysis so that Prameela's (2013) conceptual research model will be examined and modified upon on key findings if any. The independent variable is determined as customer satisfaction while independent variable is known as perceived service quality on ATM services of BIDV Ha Giang. The study is conducted with the survey of questionnaire to collect the customer satisfaction on BIDV's ATM services on 4 dimensions, including card delivery, performance, service quality, quality of notes. This survey of questionnaire is carried from 10 th August 2013 to 25 th August 2013 in BIDV Ha Giang. 14

23 3.2 Sampling Design and Data Collection Secondary data Saunders et al. (2009) indicate that secondary data is the information that has already been collected in previous studies and the researchers choose secondary data whenever it directly or indirectly supports their studies. Normally, secondary data is collected from many sources such as newspapers, books from library, or online contexts. Srivastava and Rego (2011) also mention about the advantage and disadvantage sides of using secondary data. Secondary data is advantageous to the researchers who have limited time to carry interview or questionnaire to collect their own data as it is often free. Furthermore, the researchers also gain the knowledge of applying chosen conceptual research model in different geographic areas so that their key findings are more comprehensive. However, secondary data has the weakness side of which previous studies were conducted in different time while the changes in respondents answers may be biased by time (Hair et al., 2011). In this study, the author is still using secondary data for analyzing the relationship between customer satisfaction and ATM services provided by BIDV Ha Giang. The reason is that customer satisfaction in banking services are quite new in Vietnam and the recent financial downturn has enforced many local banks to stay focus on their customer satisfaction (Duong et al., 2012) while foreign banks have already been taking into consideration of their customer satisfaction for a long time (Wruuck, 2013). On the other hand, experiences of local commercial banks in customer satisfaction are too low, so the author has to look at studies in other markets to derive the suitable approaches for the study Primary data Srivastava and Rego (2011) denote that primary data is the information that is collected by the researchers. Saunders et al. (2009) state that this kind of data is significant when the researchers cannot find the information about secondary data to support their analyses. A survey with closed questions will be validated by the statistical analysis so that Prameela s 15

24 (2013) conceptual research model will be examined and modified upon key findings if any Samples According to Saunders et al. (2009), there are two techniques of generating sample for academic studies, including probability and non-probability. The difference between those techniques is that probability sampling technique is come up with the assumption of unit in the population is given by equal opportunity of selection. Based on the characteristics of customers using ATM banking services at BIDV Ha Giang where the personal financial service, especially money transfer and withdraw, are most popular transaction favored by local customers. In comparison with joint stock commercial banks such as Vietinbank, Vietcombank, Techcombank, etc,bidv is unable to compete on the financial services. In this study, the author would like to adopt probability-sampling technique (or regarded as random sampling technique).the author does not use non-probability sampling as Saunders et al. (2009) state that this sampling technique is only suitable when the researchers have been cumulated by intensive knowledge in the industry that their studies are set to focus on. This statement of Saunders et al. (2009) is supported by the fact that the author does not have much experience in banking services so that the choice of non-probability is not practical and wrong number of sample size may lead to the unexpected outcomes. In terms of probability sampling technique, it is noted that when the researchers understand the population of the social phenomenon, they can apply Yamane s (1967) equation to generate sample size as: n = N / (1 + N*e 2 ) of which n, N, and e are the sampling size, total population size, and the probability of error. Yamane (1967) denotes that there is a large amount of studies that set the probability of error at 5%. The author intends to describe and analyze the figure and information of customer base in 2012 at BIDV Ha Giang; however, due to the downturn of Vietnam economy in 2012 and the official annual report published for the year 2011 as the most updated version, the data as 16

25 well as figure will be adapted from the Internal Report of BIDV Ha Giang in Given in the report is the total number of customers approximately 134,000 including 19 percent of individuals. That means the population of individual customers using ATM service is approximately 25,460 ones which the number of customers using ATM service of BIDV is about 10,000 customers so that N = 10,000 and sample size (n) = 10,000 /(1+10,000* ) = 384 customers. 3.3 Measures In this study, the author would like to adopt ACSI framework to design the questionnaire. The structure of the questionnaire consists of 3 parts: (1) demographic information of the customers, including gender, age, marital status, and education; (2) perceived service quality level of the customers with 7 items as shown in the table below; and (3) customer satisfaction level with ATM services of BIDV Ha Giang whether the respondents will be asked to provide their ideas ATM services of BIDV Ha Giang you perceive good that should be praised, or poor that should be improved. Furthermore, it is worth to denote that the Likert Scale of 7 will be used for the questionnaire so far I believe that the general quality of ATM services of BIDV Ha Giang is low. 2. Overall, I consider ATM services of BIDV Ha Giang to be excellent. 3. The quality of ATM services of BIDV Ha Giang is generally 4. If I needed ATM services, I believe that I would be satisfied with ATM services of BIDV Ha Giang. 5. Overall, in purchasing ATM services, I believe that I would be pleased with ATM services of BIDV Ha Giang. 6. I believe that purchasing services from BIDV Ha Giang is usually a satisfying experience. 7. My feelings toward ATM services of BIDV Ha Giang can best be characterized as 3.4 Data Analysis Data analysis involves 4 techniques, including descriptive statistics, reliability test, linear 17

26 regression, and ANOVA analysis. Descriptive statistics is taken on each factor in the conceptual research model and it helps to generate the mean value in the answers of the respondents so that the author will understand the current level of customers satisfaction towards ATM services of BIDV Ha Giang. The reliability test, however, plays the important part in assessing how the survey scale is reliable or not. It is conducted with the presentation of Cronbach s alpha value that is compared to the benchmark of 0.6 and the Cronbach s alpha value higher than 0.6 indicates for the average level in the reliability. So far, this study aims to test the relationship between customer satisfaction and perceived service quality towards ATM services in BIDV Ha Giang so that the author tries to apply linear regression analysis with T-Test and the R-Square. Finally, ANOVA and Independent T-Test are applied in order to examine the assumption of which different characteristics of the respondents will affect significantly to their answers accordingly. 18

27 Chapter 4 RESULTS AND DISCUSSIONS 4.1 Demographic description The survey of questionnaire is conducted with demographic information of respondents have been captured, including gender, age, marital status, and education. The table below is prepared to capture the information achieved from survey research strategy on demographic information of 384 respondents. Table 4.1: Demographic information of respondents Demographic Variables Number Percent Gender Male % Female % Age % % % % % Above % Marital status Single % Married % Education High school % Undergraduate % Graduate % As shown in the table above, gender information illustrates that there are 192 male and 192 female involved to survey process that are equal with each other. This achieved results is best opportunity for the author to validate whether male and female have different point of view on quality of ATM services of BIDV Ha Giang that can be obtained thorough ANOVA 19

28 analysis. The second demographic information is age of respondents whether it is categorized into 6 groups, including [20-29], [30-39], [40-49], [50-59], [60-69], and [above 70] with distribution rate of 14.3%, 19.0%, 19.5%, 13.0%, 19.8%, and 14.3% respectively. It means that the number of respondents in each age group is distributed equally; or on the other hand, there are no age group has outperformance compared to other groups, in term of number within. However, it is worth to denote that the number of respondents having age more than 29 years old consumes almost part of respondents so the author believes that the respondents are mature enough and they can provide good information about ATM service quality of BIDV Ha Giang. The last but not least is marital status description and it has 2 groups, including single and married with distribution rate of 45.6% and 54.4%. It is asserted that married people has higher utilization of ATM services that single people and it is true since married people have to take care for their family and their ATM utilization, therefore, will be higher than single people. Finally, education background of the respondents is captured with 3 groups, including high school, undergraduate, and graduate with distribution rate of 34.9%, 31.8%, and 33.3%. 4.2 Descriptive statistical analysis The study is conducted with application of ACSI survey with 384 people who are using ATM services of BIDV Ha Giang. There are 7 information are captured with descriptive statistics results is described in the table below: Table 4.2: Descriptive statistical results No Questionnaire N Std. Minimum Maximum Mean Deviation I believe that the general quality 1 of ATM services of BIDV Ha Giang is low Overall, I consider ATM 2 services of BIDV Ha Giang to be excellent 20

29 The quality of ATM services of BIDV Ha Giang is generally If I needed ATM services, I believe that I would be satisfied with ATM services of BIDV Ha Giang Overall, in purchasing ATM services, I believe that I would be pleased with ATM services of BIDV Ha Giang I believe that purchasing services from BIDV Ha Giang is usually a satisfying experience My feelings toward ATM services of BIDV Ha Giang can best be characterized as service quality As shown in the table above, all questionnaires have been assessed by 384 respondents under survey of 7 scale and achieved results show that all questionnaires have mean value higher than 3.5 so that ATM services quality of BIDV Ha Giang is considered as high agree level from the respondents (except the question No.1). Among 7 questionnaires above, the question No.2, No.5, and No.7 are determined as highest mean value (4.13, 4.07, and 4.06 respectively). The question No.3 refers to the statement of which BIDV Ha Giang can provide excellent ATM services to the customers. It is true since BIDV Ha Giang is positioned as the largest and highest reputation brand name in Ha Giang Province so that the bank has been received high awareness of services from the customers. The question No.5 and No.7 has mean values closed with each other and they indicate for the contexts of purchasing ATM services of BIDV Ha Giang pleasures their customers and feelings toward ATM services of BIDV Ha Giang can best be characterized as service quality. 21

30 The first question is set to measure whether there is reliable in the answers of the respondents as its context refers to contradict description on service quality of ATM services of BIDV Ha Giang whether the general quality of ATM services of BIDV Ha Giang is low. Received result shows that mean value of this factor is only 2.02 and it is less than 2.5 so that the respondents do not agree with this questionnaire context. On the other hand, it means that the respondents are pleasured by ATM services quality of BIDV Ha Giang. 4.3 Independent T-test and ANOVA analysis T-Test analysis for gender difference Table 4.3: Independent t-test analysis for gender difference Independent Samples Test Levene's Test for t-test for ity of Means ity of Variances F Sig. t df Sig. Mean Std. Error 95% Confidence (2-tailed) Difference Difference Interval of the Difference Lower Upper Customer satisfaction I believe that the general quality of ATM services of BIDV Ha Giang is low

31 Overall, I consider ATM services of BIDV Ha Giang to be excellent The quality of ATM services of BIDV Ha Giang is generally If I needed ATM services, I believe that I would be satisfied with ATM services of BIDV Ha Giang Overall, in purchasing ATM services, I believe that I would be pleased with ATM services of BIDV Ha Giang I believe that purchasing services from BIDV Ha Giang is usually a satisfying experience

32 My feelings toward ATM services of BIDV Ha Giang can best be characterized As shown in the table above, all Sig. value in questionnaire statement and customer satisfaction is higher than 0.05 so that the respondents have different point of view among male and female customers ANOVA analysis for age difference Table 4.4: ANOVA analysis for age difference ANOVA Sum of Squares df Mean Square F Sig. Customer satisfaction Between Groups Within Groups Total I believe that the general quality of ATM services of BIDV Ha Giang is low Overall, I consider ATM services of BIDV Ha Giang to be excellent The quality of ATM services of BIDV Ha Giang is generally If I needed ATM services, I believe that I would be satisfied with ATM services of BIDV Ha Giang Overall, in purchasing ATM services, I believe that I Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups

33 would be pleased with ATM services of BIDV Ha Giang Total I believe that purchasing services from BIDV Ha Giang is usually a satisfying experience My feelings toward ATM services of BIDV Ha Giang can best be characterized Between Groups Within Groups Total Between Groups Within Groups Total As shown in the table above, all Sig. value in questionnaire statement and customer satisfaction is higher than 0.05 so that the respondents have different point of view among different age groups Independent T-test analysis for marital status difference Table 4.5: Independent T-test analysis for marital status difference Independent Samples Test Levene's Test for t-test for ity of Means ity of Variances F Sig. t df Sig. Mean Std. Error 95% Confidence (2-tailed) Difference Difference Interval of the Difference Lower Upper Customer satisfaction I believe that the general quality of ATM services of BIDV Ha Giang is low

34 Overall, I consider ATM services of BIDV Ha Giang to be excellent The quality of ATM services of BIDV Ha Giang is generally If I needed ATM services, I believe that I would be satisfied with ATM services of BIDV Ha Giang Overall, in purchasing ATM services, I believe that I would be pleased with ATM services of BIDV Ha Giang I believe that purchasing services from BIDV Ha Giang is usually a satisfying experience

35 My feelings toward ATM services of BIDV Ha Giang can best be characterized As shown in the table above, all Sig. value in questionnaire statement and customer satisfaction is higher than 0.05 so that the respondents have different point of view among single and married group. However, the questionnaire statement of My feelings toward ATM services of BIDV Ha Giang can best be characterized has Sig. value < 0.05 so that there is no difference between single and married respondents for this questionnaire statement ANOVA analysis for education difference Table 4.6: ANOVA analysis for education difference ANOVA Sum of Squares df Mean Square F Sig. Customer satisfaction Between Groups Within Groups Total I believe that the general quality of ATM services of BIDV Ha Giang is low Overall, I consider ATM services of BIDV Ha Giang to be excellent The quality of ATM services of BIDV Ha Giang is generally If I needed ATM services, I believe that I would be Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups

36 satisfied with ATM services of BIDV Ha Giang Total Overall, in purchasing ATM services, I believe that I Between Groups Within Groups would be pleased with ATM services of BIDV Ha Giang Total I believe that purchasing services from BIDV Ha Between Groups Within Groups Giang is usually a satisfying experience Total My feelings toward ATM services of BIDV Ha Giang can best be characterized Between Groups Within Groups Total As shown in the table above, all Sig. value in questionnaire statement and customer satisfaction is higher than 0.05 so that the respondents have different point of view among different education groups. 4.4 Linear regression and hypothesis testing The last data analysis is multiple linear regression whether it helps to explore the relationship between quality of ATM services of BIDV Ha Giang (independent variables) and customer satisfaction of this kind of services (dependent variable). The table below is prepared to summary about achieved results after multiple linear regression procedure: Table 4.7: Linear regression results Model Summary Std. Error of the R R Square Adjusted R Square Estimate ANOVA Model Sum of Squares Degree of freedom Mean Square F Sig. 28

37 Regression Residual Total Dependent Variable: Customer satisfaction As shown in the table above, the author would like to measure the relationship between 7 survey questionnaire and assessment of customer satisfaction on ATM services quality of BIDV Ha Giang. The results show that all these factors can explain for more than 73% of changes in customer satisfaction on ATM services quality of BIDV Ha Giang (adjusted R-Square = 0.739). Such explanation is statistical significant since when F-Test is equal to and it is statistical significant at 5 percent of confidence interval (Sig. in ANOVA table = 0.00 < 0.05). In table of coefficient estimation, all 7 factors are statistical significant to customer satisfaction on ATM services quality of BIDV Ha Giang with T-Tests and their Sig. value is less than 0.05 or 5 percent of confidence interval. Among these factors, the first factor has beta value of and it is negative. It is true since this questionnaire s statement refers to the context of general quality of ATM services of BIDV Ha Giang is low. However, quality of ATM services of BIDV Ha Giang is excellent. On the other hand, other factors have positive impacts to customer satisfaction of ATM services of the bank. Among these factors, the second questionnaire statement has highest impact to customer satisfaction with partial correlation coefficient of It means that customer will be satisfied with ATM services of BIDV Ha Giang in case of the quality of ATM services is excellent. It is worth to denote that excellent services of ATM services of BIDV Ha Giang is formulated from many sub-factors. Quality of services can be illustrated through physical asset of the bank. Particularly, the customers do not need to purchase for physical assets or equipment to utilize the bank s services. On the other hand, the customers go to the bank s branches and transaction office so that physical is defined as the appearance of the bank that the customers feel when they go to BIDV s branch and transaction office The rational assessment on 29

38 physical asset of BIDV points to the bank s color, logo and designs. Currently, BIDV chooses read as primary color with the appearance of the bank is depicted in the figure below: Figure 4.1: BIDV s physical assets The service quality of ATM services of BIDV Ha Giang is also influenced by the quality of marketing campaign that the bank has been conducting during the year. In the case study of BIDV, process marketing mix is defined as how the bank organizes its operation through clear statement on functions of different units with the objectives of aligning units operations to support corporate and business strategy of the bank. Currently, the process of BIDV is managed by operation department whether this unit takes the responsibility of reviewing all activities of the bank to ensure they are in applicable level. Furthermore, operation department also holds a meeting every month with Board of Director of the bank to review and to address current or potential problems that may lead to the postpone in banking activities. Furthermore, during 2012, McKinsey and Company has proposed to Board of Director of the bank to make centralization process in credit activities whether all credit application form will be sent to Credit Process Center to get approval. 30