Tài liệu Improving customer service in mb hoang quoc viet branch”.

Graduation Thesis Supervisor: M.A Trương Thi Minh Hanh DECLARATION Signed hereby, certify hereby that “Improving customer service in Military Commercial Join Stock Bank - Hoang Quoc Viet Branch” is my own research. The content and figures presented in the thesis reflect a true and fair situation of the internship organization. I also assure that my research result have not been previously or concurrently published in any other work. Hanoi, May 7th 2016 Student Nguyễn Chúc Quỳnh Student: NGUYỄN CHÚC QUỲNH CQ50/51.04 Page I Supervisor: M.A Trương Thi Minh Hanh Graduation Thesis ABSTRACT Customer service is lifeblood in banking sector to satisfy customer, create loyalty and attract more and more potential customers. It is also important for banking activities like MB Hoang Quoc Viet Branch to understand what makes a quality of customer service. The purpose of this study is to make an assessment of customer service and then to give some recommendations to improve the customer service in MB Hoang Quoc Viet Branch. In order to examine the quality of customer service based on measuring dimensions and attributes SERVPERF model, a questionnaire with ten questions were used to collect data about customers’ opinion of customer service in MB Hoang Quoc Viet. The preliminary result of the research shows that quality of customer service’s achievements has strength in MB Hoang Quoc Viet. However it is revealed that its customer service also has weakness such as quality of staffs and technology system. The conclusion can also be drawn that the quality of customer service in MB Hoang Quoc Viet Branch. Following an in-depth multi-dimensional analysis of preliminary research result, some recommendations for “Improving customer service in Military Commercial Join Stock Bank – Hoang Quoc Viet Branch” will also be presented. Student: NGUYỄN CHÚC QUỲNH CQ50/51.04 Page II Supervisor: M.A Trương Thi Minh Hanh Graduation Thesis ACKNOWLEDGEMENTS I owe a debt of gratitude to many people who helped me to complete this graduation thesis. I would like to acknowledge all of them. I would like to express my deepest gratitude to my supervisor, Mrs. Truong Thi Minh Hanh, M.A, lecture of the Faculty of Foreign Languages, Academy of Finance, for her whole-hearted guidance and support. Without her valuable recommendations, this thesis cannot come on to an end. My sincere thanks also go to all the teachers off Faculty of Foreign Languages, Academy of Finance. I would like to acknowledge, Mrs. Tran Thi Thu Huong, the Deputy Director of Military Commercial Join Stock Bank- Hoang Quoc Viet Branch for creating favorable conditions for me to work at the office. Moreover, I would like to extend my special thanks to Mrs. Nguyen Thi Thanh Huyen, the Professional supporter for providing me authentic and upto-date information and figures relating to current situation at the bank for fulfillment of this paper. I also want to convey my sincere thanks to all the staff at MB Hoang Quoc Viet Branch for their kindness. Without their kind support, I could not finish my own research. Finally, I would like to acknowledge the encouragement and strong support from my beloved family. Without their great love and dedication, this paper would not be translated into reality. Student: NGUYỄN CHÚC QUỲNH CQ50/51.04 Page III Supervisor: M.A Trương Thi Minh Hanh Graduation Thesis LIST OF ABRREVIATION ATM Automated Teller Machine MB Military Commercial Join Stock Bank SBV The State Bank of Vietnam VND Viet Nam Dong Student: NGUYỄN CHÚC QUỲNH CQ50/51.04 Page IV Graduation Thesis Supervisor: M.A Trương Thi Minh Hanh LIST OF FIGURES FIGURE 1.1: SERVPERF MODEL ............................................................... 12 FIGURE 1.2: THEORETICAL RESEARCHING MODEL .......................... 13 FIGURE 2.1: CUSTOMER’S EVALUATION ON TRANSACTION TIME ......................................................................................................................... 31 FIGURE 2.2: CUSTOMER’S SATISFACTION WITH THE PRODUCTS OFFERED BY MB ......................................................................................... 33 FIGURE 2.3: ASSESSING THE QUALITY OF CUSTOMER SERVICE .. 36 Student: NGUYỄN CHÚC QUỲNH CQ50/51.04 Page V Graduation Thesis Supervisor: M.A Trương Thi Minh Hanh LIST OF TABLES TABLE 2.1: CRITERIA OF RETAIL BANKING FOR INDIVIDUAL CUSTOMERS OF MB HOANG QUOC VIET BRANCH OVER ................. 3 TABLE 2.2: THE ASSESSMENT ATTRIBUTES OF CUSTOMER SERVICE QUALITY AT BANKS ................................................................ 20 TABLE 2.3: CUSTOMER’S EVALUATION ON TANGIBLE ................... 22 TABLE 2.4: CUSTOMER’S EVALUATION ON EMPATHY .................... 25 TABLE 2.5: CUSTOMER’S EVALUATION ON RESPONSIVENESS ..... 27 TABLE 2.6: CUSTOMER’S EVALUATION ON STAFF OF MB HOANG QUOC VIET BRANCH .................................................................................. 29 Student: NGUYỄN CHÚC QUỲNH CQ50/51.04 Page VI Graduation Thesis Supervisor: M.A Trương Thi Minh Hanh TABLE OF CONTENTS DECLARATION ............................................................................................... I ABSTRACT ..................................................................................................... II ACKNOWLEDGEMENTS ............................................................................ III LIST OF ABRREVIATION ........................................................................... IV LIST OF FIGURES.......................................................................................... V LIST OF TABLES .......................................................................................... VI TABLE OF CONTENTS ...............................................................................VII INTRODUCTION............................................................................................. 1 CHAPTER 1:LITERATURE REVIEW ........................................................... 4 1.1 Customer service ......................................................................................... 4 1.1.1Definition of customer service .................................................................. 4 1.1.2. Definition of customer service quality .................................................... 5 1.1.3 Customer loyalty ....................................................................................... 5 1.1.4 Customer satisfaction ................................................................................ 6 1.1.5. Factors affecting customer service in banks ........................................... 7 1.2. Model to analyze customer services quality ............................................. 12 1.2.1. Responsiveness ...................................................................................... 13 1.2.2. Empathy ................................................................................................ 14 1.2.3. Tangible ................................................................................................. 14 1.2.4. Staff ....................................................................................................... 14 1.2.5. Transaction time .................................................................................... 14 CHAPTER 2:THE STUDY ............................................................................ 15 2.1. Introduction of Military Commercial Join Stock Bank ........................... 15 2.1.1. History and development of Military Commercial Joint Stock Bank .. 15 3.1.2. Introduction of MB Hoang Quoc Viet Branch ..................................... 16 2.1.3. Products and services ............................................................................ 16 2.1.4. Business performance of MB Hoang Quoc Viet Branch ...................... 18 Student: NGUYỄN CHÚC QUỲNH CQ50/51.04 Page VII Graduation Thesis Supervisor: M.A Trương Thi Minh Hanh 2.2. Dimensions and attributes to be measure customer service in MB Hoang Quoc Viet Branch ............................................................................................ 19 2.3. Current customer service in MB Hoang Quoc Viet Branch ....................... 22 2.3.1. Customer’s evaluation on tangible dimension ...................................... 22 2.3.2. Customer’s evaluation on empathy dimension ..................................... 25 2.3.3. Customer’s evaluation on responsiveness dimension ........................... 27 2.3.4 .Customer’s evaluation on staff of MB Hoang Quoc Viet Branch ........ 28 2.2.5. Customer’s evaluation on transaction time ........................................... 31 2.3.4. General assessment of customer service quality as perceived by Military Bank customers ................................................................................. 36 2.4. Summary of findings customer service in MB Hoang Quoc Viet Branch ......................................................................................................................... 37 2.4.1. Achievements ........................................................................................ 37 2.4.2. Shortcomings and causes ...................................................................... 38 2.5. Solutions to improving customer service in MB Hoang Quoc Viet Branch ......................................................................................................................... 39 2.5.1. Building customer information system ................................................. 39 2.5.2 Improving the quality of staff and building professional communication skills for staff at the branch............................................................................... 41 2.5.3 Enhancing behavior standards, customer service attitude for staff in the bank ........................................................................................................... 44 CHAPTER 3:RECOMMENDATIONS.......................................................... 47 3.1 Customer service orientation of MB Hoang Quoc Viet Branch ............... 47 3.1.1. Business orientation of MB.................................................................. 47 3.1.2 Customer service orientation of MB Hoang Quoc Viet Branch ............ 48 3.2. Recommendations ................................................................................. 49 3.2.1.Recommendations to the head- office of Military Commercial Join Stock Bank ...................................................................................................... 49 Student: NGUYỄN CHÚC QUỲNH CQ50/51.04 Page VIII Graduation Thesis Supervisor: M.A Trương Thi Minh Hanh 3.2.2. Recommendations to the Government, the State Bank of Vietnam, and other related agencies ...................................................................................... 51 CONCLUSION ............................................................................................... 52 LIST OF REFERENCES ................................................................................ 53 APPENDIX 1 .................................................................................................. 55 Student: NGUYỄN CHÚC QUỲNH CQ50/51.04 Page IX Graduation Thesis Supervisor: M.A Trương Thi Minh Hanh INTRODUCTION 1. Rationale Nowadays many banks realize that all advantages, which they want to gain through their core products are quickly lost as others banks have the same products being offered. However, since it is a major fact that no business can exist without customers, the important strategy is focused on providing the high-quality customer service. In every business regardless of size or types, excellent customer service needs be at the heart of that business model if you wish to be successful. It is important to provide essential customer service to all types of customers, including potential, new and existing customers. The question of how to make a good customer service is always the problem that every bank tries to resolve in the best way. Therefore, improving the customer service becomes one of the most important tasks that the bank needs to do regularly to meet the client’s demands timely. Bankers need to make sure that their clients always prefer their service. Military Commercial Join Stock Bank- Hoang Quoc Viet Branch has achieved some positively initial results. However, in comparison with other branches in the same system, MB Hoang Quoc Viet Branch of MB still somehow lack of professionalism in customer service. The limited ability of communicating with customers may causes difficulties in exploiting the potential customers. Therefore, developing a good customer service is the key to assure the customers’ satisfaction and encourage them to make business with the bank continuously. Besides, good customer service can help your business grow and prosper. Facing the difficulties and challenges in banking sector, MB wants to retain their customers and attract new customers. Therefore, improving the quality Student: NGUYỄN CHÚC QUỲNH CQ50/51.04 Page 1 Graduation Thesis Supervisor: M.A Trương Thi Minh Hanh of customer service is an urgent task which arises in the branches of MB in general and MB Hoang Quoc Viet Branch particularly. For this reasons, the author would like to focus on topic “Improving customer service in MB Hoang Quoc Viet Branch”. 2. Aims of the study The purpose of the research is to: - Assess customer service in MB Hoang Quoc Viet Branch by using SERVPERF model. - Suggest some solutions to improve the customer service in MB Hoang Quoc Viet Branch. 3. Scope of the study The thesis focuses on the current situations of customer service for individual clients in MB Hoang Quoc Viet Branch during the period of three years from 2012 to 2014. Competition in banking sector is heavy and is likely to increase. So how they can improve their customer service better and better is really a hard question. 4. Methods of the study Based on collected data from annual reports, financial reports, websites, financial books and other previous researches… this thesis would coordinate some mainly methods like comparison, analysis, statistic, synthesis, questionnaire …to finalize achievements and limitations and then the best solutions for improving customer service in MB Hoang Quoc Viet Branch. 5. Organization of the study The main body of the study is divided into 3 chapters as follows: Chapter 1: LITERATURE REVIEW Student: NGUYỄN CHÚC QUỲNH CQ50/51.04 Page 2 Graduation Thesis Supervisor: M.A Trương Thi Minh Hanh The fundamentals of customer service in commercial banks Chapter 2: THE STUDY The situation of customer service in MB Bank- Hoang Quoc Viet Branch The solution of customer service in MB Bank- Hoang Quoc Viet Branch Chapter 3: RECOMMENDATION The recommendation for MB Hoang Quoc Viet Branch, MB Bank, State Bank of Viet Nam in order to improve the customer service in MB Bank – Hoang Quoc Viet Branch Student: NGUYỄN CHÚC QUỲNH CQ50/51.04 Page 3 Supervisor: M.A Trương Thi Minh Hanh Graduation Thesis CHAPTER 1 LITERATURE REVIEW This chapter present a review of literature related to the research work as documented by authorities on customer service. It will cover the definitions of customer service, customer service quality, customer satisfaction and customer loyalty. It will also take a look into the SERVPERF MODEL to assess service quality dimension, customer service quality and some factors affecting customer service in banking sector. 1.1 Customer service 1.1.1Definition of customer service There are numerous definitions of customer service in the literature and such definitions reflect different perspectives. According to Wikipedia, “Customer service” is the provision of service to customers before, during and after a purchase. Accordingly, it may vary by product, service, industry and individual customer. The perception of success of such interactions is dependent on employees "who can adjust themselves to the personality of the guest". According to Paul McKinney (2015), Customer service is the act of taking care of the customer's needs by providing and delivering professional, helpful, high quality service and assistance before, during, and after the customer's requirements are met. Christine Johnson (2006, p.102) says that good customer service means providing product and service which has high quality, answering queries, making customer easy to purchase goods and delivering on time. According to consultant Sudhir Andrews (2007, p.198), customer service not only satisfies a customer but also reflects the professionalism of the Student: NGUYỄN CHÚC QUỲNH CQ50/51.04 Page 4 Graduation Thesis Supervisor: M.A Trương Thi Minh Hanh organization as the result of building its image. He believed that good customer service can build trust and customer loyalty. Employees can also get rewards and develop the friendship with customers if they provide good services. In general, Customer service relates to the service provided to customers before, during and after a purchase. 1.1.2. Definition of customer service quality According Parasuraman, Zeithaml and Berry (1985), the quality of service is the customer's perception of service has generated a good level of customers’ previous expectations. Also according to Parasuraman, the expectation in service quality is the desire of the customer, which means they feel the right provider will perform and not perform the service requested. Bitner and Hubert (1994) stated that the perception of service quality can occur at multiple levels in an organization. Research by Caruna (2000) reveal that service quality is an important input to customer satisfaction, therefore the main point of management attention should be on customers, of which service quality is an important antecedent. Customers receive products through active communication, information and comments received. To evaluate customer service quality at banks, customers must come and perform transactions, assess the facilities, the service attitude of staff, level of satisfaction of products and services, etc. 1.1.3 Customer loyalty Customer loyalty is both an attitudinal and behavioral tendency to favor one brand over all others, whether due to satisfaction with the product or service, its convenience or performance, or simply familiarity and comfort with the brand. Customer loyalty encourages consumers to shop more consistently, spend a greater share of wallet, and feel positive about a shopping experience, Student: NGUYỄN CHÚC QUỲNH CQ50/51.04 Page 5 Graduation Thesis Supervisor: M.A Trương Thi Minh Hanh helping attract consumers to familiar brands in the face of a competitive environment (Customer loyalty, 2002).Journal Citation Ciation Report (Thomson Reuters, 2014) Customer loyalty is viewed as the strength of the relationship between an individual's relative attitude and repeat patronage. The relationship is seen as mediated by social norms and situational factors. Cognitive, affective, and conative antecedents of relative attitude are identified as contributing to loyalty, along with motivational, perceptual, and behavioral consequences. Albert Canuana,2002 state that service loyalty, with its final effect on repurchasing by customers, appears to have received relatively little attention. This study starts by first delineating the concept of service loyalty and proceeds to distinguish between service quality and customer satisfaction. A model that links service quality to service loyalty via customer satisfaction is proposed. Appropriate measures are identified and a postal survey is undertaken among 1,000 retail banking customers. A response rate of 20.5 per cent is obtained. Results indicate that customer satisfaction does play a mediating role in the effect of service quality on service loyalty. In general, it is agreed that customer satisfaction measurement is a postconsumption assessment by the user, about the products or services gained (Churchill and Surprenant, 1982; Yuksel and Rimmington, 1988). 1.1.4 Customer satisfaction Many researchers have definitions customer satisfaction. According to Cambridge Dictionary Customer satisfaction is a measure of how happy customers feel when they do business with a company. Journal of Marketing(January 1982) is defined customer satisfaction has a direct impact on the primary source of future revenue streams for most companies. Satisfaction is as a judgment following a consumption experience - it is the Student: NGUYỄN CHÚC QUỲNH CQ50/51.04 Page 6 Supervisor: M.A Trương Thi Minh Hanh Graduation Thesis consumer’s judgment that a product provided (or is providing) a pleasurable level of consumption-related fulfillment (Oliver Richard .L,1997). Most research confirms that the confirmation or disconfirmation of preconsumption expectations is the essential determinant of satisfaction. This means that customers have a certain predicted product performance in mind prior to consumption. During consumption, customers experience the product performance and compare it to their expected product performance level. Satisfaction judgments are then formed based on this comparison. The resulting judgment is labeled positive disconfirmation if the performance is better than expected, negative disconfirmation if it is worse than expected, and simple confirmation if it is as expected. In short, customers evaluate product performance by comparing what they expected with what they believe they received. The performance implications of the customer satisfaction instrument are also explored. What is shown is that customer segments, in fact, yield statistically different satisfaction scores, which verifies the managerial value of customer segmentation practices. Finally, the facets of customer satisfaction as explanatory cues for the switching behavior of individual and business customers were tested successfully. 1.1.5. Factors affecting customer service in banks 1.1.5.1. External factors The bank is operating in conditions which often change due to a lot of diverse relations between it and the various economic actors. All relationships constitute operating environment and business of commercial banks. To be able to develop rapid and sustainable services, commercial banks need to research about the operating environment Student: NGUYỄN CHÚC QUỲNH CQ50/51.04 affecting our business. Page 7 Graduation Thesis Supervisor: M.A Trương Thi Minh Hanh Environmental activities include: economic environment, social and cultural environment and technological environment. 1.1.5.1.1 Economic environment Any business organizations are affected by the economic environment on their business activities. In particular, commercial banks are subject having an intimate relationship with most of the other economic sectors. Therefore, when the economic environment changes in any direction, the operations of commercial banks are also affected strongly. For individual customers, income is the main factor, the most important factor impacting on their use of financial and banking services. During the developing economies, per capital income increases, the demand for people with the products and services of banks will increase, which will boost the commercial bank of constantly open wide business operations, improve service quality and product, diversify new services to increase market share and satisfy every customer's needs. In contrast, the economy falls into instability, difficulty will make the unemployment rate rose, consumption declined, people's incomes go down, the things that impact directly on the banks as the amount of deposited money in banks will decline, lending individual customers become more difficult and risky, etc. 1.1.5.1.2 Social and cultural environment Customary practices, conception of life, the social and cultural factors, etc. have decided to influence preferences and consumption habits of bank service individual customers. Although Vietnam's population is relatively large, the number of participants in banking transactions is very low, and the majority of people still have the habit of using cash for payments. To be able to change consumption habits of people, banks should take measures to propagate and Student: NGUYỄN CHÚC QUỲNH CQ50/51.04 Page 8 Graduation Thesis Supervisor: M.A Trương Thi Minh Hanh advertise the utilities from using banking services, help people feel secure and confident when using services. Besides that, some factors of population such as population density, average age, education level, income, etc. in each region also affect the development of banking services in the area. The study of the socio-cultural factors not only determine their impact on the behavior using banking products and services of customers, but also help the bank managers active in participate in formulating policies, regulations and procedures in the design business and organizational models consistent with the cultural characteristics of each region and market sector both domestically and internationally. Therefore, banks need to delve on the above factors, from which subgroups of customers, to be able to provide appropriate services to more customers, help develop better banking services. 1.1.5.1.3 Technological environment The rapid development of science and technology also has strong impact to the commercial banks. Based on the application of information technology software advanced, high-speed processes has helped the administration of commercial banking effectively; offer new better services which meet customer needs. Thus, the commercial banks have to capture the change of environment technology to applications of scientific and technical achievements in service to satisfy customers’ demand. In fact, the changes in information technology have a strong impact to the banking business. New technology allows banks to not only process innovation professionally, but also renew the distribution method, develop new products and services such as the development of computer networks that allows bank network to provide 24/24 banking services. Changes in Student: NGUYỄN CHÚC QUỲNH CQ50/51.04 Page 9 Graduation Thesis Supervisor: M.A Trương Thi Minh Hanh technology has a strong impact to the complex production of the industry, and also has an influence on how the use of banking products and services to the population. This has created new demands on products and banking services banking activities as the birth and development of electronic commerce has put forward new requirements for the banking sector in the provision of payment services, etc. 1.1.5.2. Internal factors Subjective factors are factors affecting the banking of the development of banking services. These factors are crucial to the operation of commercial banks as well as the development of services for individual customers. 1.1.5.2.1 Attitude on service development for individual customers Any business that wants to develop fast and sustainably needs to build a development strategy from which long-term direction of action, creating fundamental basis for policy and business decisions. Development strategy of banking services should be developed on the basis of the survey, the business climate survey and customers, and it is important to rely on bank resources. When there is a well-developed strategy, it will help banks to improve the activeness, ability to grasp the opportunity and flexibility in the responses to these challenges may occur, which may change methods and ways of management when needed. Moreover, the needs of individual customers are always very complex and uneven, so each bank should have a policy or service development standpoint for specific individual customer. To be able to develop services for individual customers in the best way, the strategy of each bank should specify that the bank needs to focus on groups of individual customers, the market segment is promising and consistent performance. Student: NGUYỄN CHÚC QUỲNH CQ50/51.04 Page 10 Graduation Thesis Supervisor: M.A Trương Thi Minh Hanh 1.1.5.2.2 Education and skills In business, the human factor is always key, critical to the success or failure of a business. In the banking sector, professional competence, communication skills, professional ethics of banking staff directly impact the quality of strategies, action plans. To improve service quality, besides the support of elements of technology and finance, banks must continually foster professional qualifications and soft skills for staff. Service quality depends largely on the expertise, attitude, experiences, sense of responsibility and spirit of cooperation among all members and parts of the bank. And mental capacity of the bank staff, the personnel policy values setting out in each bank have a profound impact on the formation of a comprehensive service quality produce, etc. customers will feel more satisfied and confident when dealing with employees who have professional qualifications stable, agile style, open, polite, respectful to customers. 1.1.5.2.3 Banking technology Nowadays, technology is playing a leading role in important, fundamental factor for commercial banks to increase productivity, quality and performance. Development and application of new modern technologies allow banks to create perfect services that meet expectations of customers. The system of modern information technology will be a solid basis for funding to help develop new services having distinct characteristics and unique, providing customers with service quickly and accurately with safety higher by reducing manual intervention. Technology development also creates conditions for the deployment and development of new services for individual customers such as money transfers automatically, the online payment services, card services, Internet-banking, mobile-banking and use automated trading kiosks with many utilities, etc. Student: NGUYỄN CHÚC QUỲNH CQ50/51.04 Page 11