Tài liệu Recommendations to enhance customer satisfaction towards deposit products of shb

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- NGUYỄN CHÍ HIẾU RECOMMENDATIONS TO ENHANCE CUSTOMER SATISFACTION TOWARDS SAVINGS PRODUCT OF SHB GIẢI PHÁP NÂNG CAO SỰ HÀI LÒNG CỦA KHÁCH HÀNG ĐỐI VỚI SẢN PHẨM TIỀN GỬI CỦA NGÂN HÀNG TMCP SÀI GÒN – HÀ NỘI LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH Hà Nội - 2017 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- NGUYỄN CHÍ HIẾU RECOMMENDATIONS TO ENHANCE CUSTOMER SATISFACTION TOWARDS SAVINGS PRODUCT OF SHB GIẢI PHÁP NÂNG CAO SỰ HÀI LÒNG CỦA KHÁCH HÀNG ĐỐI VỚI SẢN PHẨM TIỀN GỬI CỦA NGÂN HÀNG TMCP SÀI GÒN – HÀ NỘI Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS. NGUYỄN THỊ KIM OANH Hà Nội - 2017 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article. The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given. The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration. Date: April, 20, 2017 i ACKNOWLEDGEMENT I have gained huge knowledge, skill and insights from my MBA course. The course raises my capacity of administration and management up to the next level. I am now very confident in my position of management. I would like to extend my sincerest thanks and appreciation to all those who have made this Thesis to be possible. I woud like to express my great gratitude to my supervisor Nguyen Thi Kim Oanhfor her useful comments, remarks and engagement during my process of doing this master thesis. I also would like to thanks my classmates for their friendship and reciprocal encouragement to make our class time to be unforgettable time ii TABLE OF CONTENT DECLARATION ........................................................................................................ i ACKNOWLEDGEMENT ......................................................................................... ii TABLE OF CONTENT ............................................................................................ iii LIST OF TABLES .................................................................................................... vi LIST OF FIRGURES .............................................................................................. viii Chapter 1: INTRODUCTION .....................................................................................1 1.1 Background to the study ...................................................................................1 1.2 Research overview ............................................................................................2 1.3 Aims of the study ..............................................................................................3 1.4 Object of the study ............................................................................................4 1.5 Scope of the study .............................................................................................4 1.6 Research methodology......................................................................................4 1.7 Proposed research structure ..............................................................................5 Chapter 2: RESEARCH FRAMEWORK ...................................................................8 2.1 Deposit products at commercial banks .............................................................8 2.1.1 Concepts ....................................................................................................8 2.1.2 Deposit products at Vietnamese commercial banks ..................................8 2.2 Customer satisfaction and models to evaluate customer satisfaction towards deposit products at commercial banks ..................................................................13 2.2.1 Customer satisfaction towards deposit products .....................................13 2.2.2 Models related to customer satisfaction towards banks’ deposit products. ...15 2.3.2 Proposed model in the study ...................................................................22 Chapter 3: METHODOLOGY ..................................................................................26 3.1 Preliminary research (qualitative)...................................................................26 3.1.1 Building the preliminary scale ................................................................26 3.1.2 Adjusting the scale ..................................................................................27 3.2 Formal research (quantitative) ........................................................................27 3.2.1 Designing the survey questionnaire ........................................................28 iii 3.2.2 Collecting information from the survey questionnaire ...........................28 3.2.3 Designing the sample ..............................................................................28 3.2.4 Processing the data ..................................................................................29 Chapter 4: THE REALITY OF CUSTOMER SATISFACTION TOWARDS DEPOSIT PRODUCTS AT SAIGON - HANOI COMMERCIAL JOINT STOCK BANK........................................................................................................................32 4.1 Overview of Saigon - Hanoi Commercial Joint Stock Bank ..........................32 4.1.1 History of foundation and development ..................................................32 4.1.2 Functions and duties ................................................................................33 4.1.3 Organization ............................................................................................33 4.1.4 Business results .......................................................................................36 4.1.5 Business results of the bank’s deposit products ......................................37 4.2 Some activities to enhance customer satisfaction towards SHB's deposit products .................................................................................................................40 4.2.1 In terms of prestige and image ................................................................40 4.2.2 In terms of the staff’s responsiveness .....................................................40 4.2.3 In terms of facilities of the bank ..............................................................43 4.2.4 Product policy..........................................................................................44 4.2.5 Interest rate policy ...................................................................................46 4.2.6 Marketing policy .....................................................................................47 4.3 Results of the survey on customer satisfaction towards the bank’s deposit products .................................................................................................................48 4.3.1 Scale testing .............................................................................................48 4.3.2 Factor analysis .........................................................................................50 4.3.3 Correlation and regression analysis .........................................................53 4.3.4 Evaluation of customers on factors affecting the customer satisfaction towards the bank’s deposit products ................................................................58 4.4 General assessments .......................................................................................67 4.4.1 Achievements ..........................................................................................67 4.4.2 Limitations ...............................................................................................68 iv 4.4.3 Causes of the limitations .........................................................................69 Chapter 5: SOLUTIONS TO IMPROVE CUSTOMER SATISFACTION TOWARDS DEPOSIT PRODUCTS AT SHB ........................................................70 5.1 SHB’s developing target and orientation ........................................................70 5.1.1. Opportunity and challenge .....................................................................70 5.1.2 SHB's developing orientation and target .................................................73 5.1.3 Developing orientation of deposit products ............................................76 5.2 Solutions to improve customer satisfaction towards deposit products ...........77 5.2.1 Solutions to improve business facilities ..................................................77 5.2.2 Solutions to improve staff quality ...........................................................78 5.2.3 Solutions to enhance the prestige of the bank .........................................80 5.2.4 Solutions to improve product policy .......................................................81 5.2.5 Solution to improve the interest rate policy ............................................82 5.2.6 Solution to improve marketing policy .....................................................84 5.2.7 Deposit insurance solution for customers ...............................................87 5.3. Recommendations ..........................................................................................87 5.3.1 Recommendations to the government .....................................................87 5.3.2 Recommendations to the State Bank .......................................................89 CONCLUSION .........................................................................................................91 REFERENCES ..........................................................................................................92 v LIST OF TABLES Table 2.1 Interpretation of variables in the research model ......................................21 Table 2.2: Summary of previous research models ....................................................23 Table 3.1: Interview questions to SHB’s experts ......................................................27 Table 4.1 Business results of SHB ............................................................................36 Table 4.2: Business results of the bank’s deposit products ......................................38 Table 4.3: Qualifications of transaction staff ............................................................41 Table 4.4: The training of bank transaction staff at the bank ...................................42 Table 4.5: System of branches and transaction offices of the bank ..........................43 Table 4.6: Some specific products of the bank .........................................................44 Table 4.7: Comparison of SHB’s interest rates with those of other banks ...............47 Table 4.8: Results of scale testing .............................................................................48 Table 4.9 Factor analysis results of independent variables .......................................50 Table 4.10 Factor analysis results of dependent variables ........................................52 Table 4.11 Results of correlation matrix between factors in the model ...................54 Table 4.12 Results of regression analysis .................................................................55 Table 4.13 Results of testing research hypotheses ....................................................57 Table 4.14 Evaluation on the prestige of the bank ....................................................58 Table 4.15: Evaluation on the staff’s responsiveness ...............................................59 Table 4.16: Evaluation on the facilities of the bank .................................................60 Table 4.17: Evaluation on the product policy ...........................................................62 Table 4.18: Evaluation on the interest rate policy ....................................................63 Table 4.19: Evaluation on the marketing policy .......................................................65 Table 4.20: Evaluation on customers’ general satisfaction.......................................66 vi vii LIST OF FIRGURES Figure 2.1: SERVQUAL model (Parasuraman et al., 1988) .....................................15 Figure 2.2: BANKSERV model (Avkiran, 1994) .....................................................17 Figure 2.3: Duong Thi Thanh Hai’s model (2014) ...................................................18 Figure 2.4: CBSQ model of Xin Guo et al. (2008) ...................................................20 Figure 2.5: Research model of Phan Dinh Khoi et al. (2015) ...................................21 Figure 2.6: Nguyen Thi Nhu Quynh’s model (2014)................................................22 Figure 2.7: Proposed model in the study...................................................................25 viii Chapter 1: INTRODUCTION 1.1 Background to the study Banking industry is the heart of the economy. The banking system in Vietnam has changed in recent years in both quantity and ranking. Banks in Vietnam have been developing in the trend of providing customers flexible products and high quality services. According to Vietnam Banking Industry Report in 2015, there were currently 48 banks operating in Vietnam, in which there were 5 state- owned commercial banks (SOCBs), 33 joint stock commercial banks (JSCBs), 5 joint venture banks, and 5 wholly foreign-owned banks (Tran et al., 2015). Apart from domestic debit cards (ATM cards), deposits are the primary product of each bank. Customers’ deposits are the source for the flow of money within a bank. Being in top 5 largest private commercial banks in Vietnam, SaigonHanoi Commercial Joint Stock Bank (SHB) also pays attention to developing deposit products. The bank’s annual report in 2015 showed that one of the main business activities of SHB is mobilizing short-term, medium-term, and long-term deposits from individuals and organizations. In 2015, the total customers’ deposits into SHB were over 157 billions VND whereas the customer loans were over 131 billions VND. In comparison to 2014, the total amount of customers’ deposits has increased 23.7% (SHB, 2015). It can be seen that mobilizing deposits is one of the vital business activities of SHB. During more than 22 years of development, SHB has maintained steady growth and sustainability as well was the confidence and expectations of customers, shareholders, and investors. The success and reputation of SHB has been recognized by the Party and the State and the bank has received many prestigious awards from reputational domestic and international organizations. In 2015, SHB was awarded as the “Best Customer Service Bank” in Vietnam by the Global Banking and Finance and the Alpha Southeast Asia. The success in its customer service may result in positive customers’ attitudes and behaviors towards the bank. Within the diversely and strictly competitive environment of the banking market in Vietnam, customers have various choices to entrust their assets. 1 Therefore, all the banks are on the race to gain customer satisfaction, and further to gain customer loyalty in depositing their money into the bank by opening savings accounts. Defining customer deposits as the most important service product in SHB’s business, the bank is also striving to win the race. However, during the operation process, SHB only focuses on large customers (groups and corporations) without paying much attention to individual customers. As a result, the customer satisfaction towards SHB deposit products is not very high. The number of complaints about SHB's deposit transactions has increased steadily (from 65 complaints to 97 complaints in the period of 2014 to 2016). The average waiting time for a customer's transaction also increased from 13 minutes to 16 minutes. In addition, customers were not pleased with the interest rate policy and deposit policy issued by SHB. Because of those facts, the need to study the determinants of customer satisfaction and the strategies to achieve customers’ satisfaction is an urgent problem. Customer satisfaction in the banking industry is not the new or exploratory research field both in Vietnam and overseas. However, most of the studies focused on other segments such as credit, cards, internet banking, or consumption loans. There have been only a few of studies on deposit products and services. In addition, there have been no studies on customer satisfaction towards deposit products conducted at SHB. Therefore, the author selected the topic “Recommendations to enhance customer satisfaction towards deposit products at SHB” as his master thesis. 1.2 Research overview In Vietnam, there have been some similar topics by other authors including: Master thesis of Le Minh Trang (2014) entitled “Studying the customer satisfaction towards quality of deposit service of AGRIBANK in Ho Chi Minh City”. The research aimed at investigating the important elements of deposit service of AGRIBANK, evaluating customers’ feeling about these elements, then identifying the satisfaction of customers towards these elements to improve the 2 quality of deposit services provided by AGRIBANK. The research results were achieved by employing both qualitative and quantitative research methods. Master thesis of Nguyen Thi Quynh Nhu (2014) entitled “Evaluating the satisfaction of individual customers towards deposit products of VIETINBANK – Can Tho Branch”. The research applied quantitative method by analyzing data collected from a survey questionnaire. It considered the satisfaction of more than 100 customers and evaluated the factors that significantly affected the level of customer satisfaction towards deposit products of AGRIBANK in Can Tho. In addition to specific topics in customer deposits segment, there have been also various studies on customer satisfaction in banking products and services in general and other banking segments in particular. Scientific research of Tran Hong Hai (2014) entitled “Studying factors affecting customer satisfaction towards ATM card services of VIETCOMBANK – Vinh Long Branch”. The research model was built based on models such as SERVQUAL (service quality model), SERVPERF (service perform model), ACSI (American Customer satisfaction Index) and ECSI (European Customer satisfaction Index). The result showed four factors affecting customer satisfaction towards ATM card services of VIETCOMBANK-Vinh Long. On that basis, the author proposed some recommendations to enhance this satisfaction. From the results of previous studies, some aspects of customer satisfaction were revealed. Although the quality of services has constantly been increasing, there are still some limitation in the quality of services such as service capacity, behavior, infrastructure conditions, equipment, network, and service charges. This is the basis for the author to conduct a study on deposit products of SHB in Hanoi in these aspects. 1.3 Aims of the study Basing on the urgency of the study, the main purposes of the research consisted of:  Reviewing primary theories and issues that are generally related to customer satisfaction. 3  Specializing the theoretical frameworks and research models to evaluate the customers’ satisfaction in banking industry in general and in deposit products in particular.  Analyzing the customer satisfaction towards SHB’s deposit products in Hanoi.  Determining the factors that influence customer satisfaction towards SHB’s deposit products in Hanoi.  Providing some recommendations to enhance the satisfaction of customers with SHB’s deposit products in Hanoi. 1.4 Object of the study  Customer saving deposit products of SHB  Data collected from SHB’s customers who were using SHB’s deposit products in Hanoi. 1.5 Scope of the study Due to limitations in time and budget, this research had a limited scope in terms of space and time.  Space: This study was carried out on the basis of gathering information from SHB and a survey with customers who were using SHB’s deposit products in Hanoi.  Time: Survey information used in this topic is the data collected from the survey using questionnaire with customers using deposit products of SHB in Hanoi. The research was carried out during the period of July, 2016 to November, 2016.  Content: The core content of the study was to focus on identifying the factors that influence customer satisfaction and analyze the impact of these factors on the satisfaction of customers who were using deposit products of SHB in Hanoi. 1.6 Research methodology This study combines two methods: qualitative and quantitative methods through the following steps: 4 Step 1: Qualitative study Qualitative study is used to have an overview of the research problem and clearly identify the topics by studying secondary data. The source of the data includes Internet, essays, research projects, books, newspapers, professional documents, and so on. Step 2: Selecting model After comparing the models in previous studies on customer satisfaction in banking industry in general and towards deposit products in particular, the author will review and select the elements to build the research framework in his study. Step 3: Building the questionnaire The author refers to relevant questionnaires to build up appropriate contents for each factor in the study. Step 4: Conducting the survey After the questionnaire has been built and adjusted, the author will deliver the survey questionnaires to the customers. Step 5: Data analysis After the entire collected data are input, they will be analyzed to consider the influence of variable factors to be studied and the exact impact of each factor on customer satisfaction towards SHB’ deposit products in Hanoi. Step 6: Discussion and recommendations After the data has been analyzed, some recommendations to enhance the level of customer satisfaction towards SHB’s deposit products will be proposed. 1.7 Proposed research structure Apart from acknowledgement, abstract, appendices, this research consists of five chapters. Chapter 1: Introduction In the Introduction part, the details in motivation to conduct the research as well as the research purpose, research objectives, the scope of study will be stated. In addition, research questions will also be clarified as the orientation for the study. 5 Moreover, the highlights of SHB’s business overview in general and its deposit services in particular will be mentioned. Chapter 2: Research framework Research framework consisted of two main part (1) Literature review and (2) Research model. Literature review: Firstly, the term “Customer satisfaction” will be discussed based on published articles including: concepts and the importance of customer satisfaction in business. Secondly, the related researches by both domestic and international researchers on the factors affecting customer satisfaction in general and in banking industry in particular will be reviewed and discussed as the basis to conduct the research. Research model: By studying and taking advantages of existed research model on customer satisfaction, especially in banking industry, the research model in the study will be proposed. The research model is the inheritance and modification from previous studies on deposit products. Chapter 3: Research methodology In this chapter, the research process will be discussed in more details for each stage. The main focus of this chapter is questionnaire design and data analysis method. The procedure of designing the questionnaire including identifying sample size and sampling method and stating the questionnaire structure. Moreover, the process of data collection and data analysis will also be clearly explained in this chapter. Chapter 4: Research findings Data collection through survey will be the core content of this chapter. Then, the analysis will be implemented through the following steps: Reliability testing using Cronbach’s Alpha coefficient Exploratory Factor Analysis (EFA) with KMO test Correlation analysis Regression analysis Chi Square null hypothesis test 6 Chapter 5: Discussion and recommendations Basing on the data analysis from chapter 4, the results will be further discussed in this chapter. It focuses on the determinants of customer satisfaction towards SHB’s deposit products. Subsequently, the feasible recommendations to enhance the satisfaction of customers towards deposit products of SHB will be made. Furthermore, those recommendations will also be considered to be applied to other banks in Vietnam. 7 Chapter 2: RESEARCH FRAMEWORK 2.1 Deposit products at commercial banks 2.1.1 Concepts * Banking service products The concept of products in general is very complicated. The concept of banking service products is even more complicated because of the generalization, diversification, and sensitivity of banking operations. Basically, a product launched to the market must be able to satisfy a certain need of customers. Banking service products are offered to carry out payment services, allow customers to withdraw money at any time, and ensure the safety of the money kept at the bank and the convenience of performing payment transactions with modern technology, etc. During the implementation process, each banking service product demonstrates its attributes and characteristics. A banking service product is defined to be a collection of features, functions, and uses created by the bank to meet certain needs and desires of customers in the financial market (Nguyen Thi Minh Hien, 2007). * Deposit products Deposit products are a part of the unused income of individuals or organizations. They deposited money in the bank for the purpose of accumulating money safely and enjoying interest from that amount. Deposits are a special form of money accumulation in the consuming sector. When depositing money in a bank, the depositors receive a savings book as a certificate of having made a deposit into the bank. On due date, the depositors withdraw their money and receive an interest amount on the savings book (Deposit Regulations, 2004). The capitals mobilized from deposit products in the economy account for the large amount in the mobilized capital proportion. It depends much on customers’ income, customers’ psychological characteristics, the service quality of the bank, the stability of the currency, and the solid growth of the economy. 2.1.2 Deposit products at Vietnamese commercial banks (1) Payment deposit Payment deposit is one of the forms of capital mobilization of commercial banks by opening customers’ account called payment account (Nguyen Thi Quy, 8 2008). This kind of account is opened to customers, individuals, or organizations who wish to make payments via banks. This type of deposit serves the customers’ non-cash payment activity but the interest that customers received from this payment account is very low. Therefore, customers using this service do not aim at getting profits. (2) Demand deposit In fact, this is a regular deposit. For this deposit, the account holders can withdraw their money at any time without prior notice. This type of deposit is similar to payment account, but it is always entitled to interest and customers do not enjoy payment services via banks. People use this type of deposit to secure their money and reserve money for short-term spending needs while also enjoying a low interest. This account balance is usually not large but less fluctuant than the payment account. Therefore, this type of deposit is often paid higher interest rates than the payment account. That is the condition for commercial banks to mobilize this source of capital. - Concept: Demand deposit is a kind of savings without definite time. Depositors can withdraw their money without prior notice on any working day of the deposit receiver (Bui Van Trinh, 2013). - Objects and scope of application: Applied to all Vietnamese citizens and foreigners living in Vietnam. Deposit account in foreign currency is only applied to the following objects: + Vietnamese citizens who have resided abroad for less than 12 months. + Foreigners who have resided in Vietnam for 12 months or more. + Vietnamese citizens who are studying, having medical treatment, or visiting abroad. +Vietnamese citizens who are working in the following agencies: diplomatic representatives, consulates, army forces and political organizations, socio-political organizations, socio-professional organizations, social funds, charity funds of Vietnam overseas and individuals accompanying them. - Customers’ benefit: Customers can deposit and withdraw money but still enjoy a stable interest rate which is higher than the interest rate of payment deposit. 9 - Interest rate: The interest rate of demand deposit is a bit higher than the interest rate of payment deposit but much lower than that of time deposit. - Interest calculation formula: The interest is calculated as the percentage (%) over the actual balance with the interest rate and the number of actual deposit days. For deposit accounts in VND, the interest rate is determined on a monthly (30 days) or annual (360 days) basis. For deposit accounts in foreign currency, the interest rate is determined on an annual basis (360 days). The number of actual deposit days is counted from the date of deposit until the end of the date prior to the withdrawal date (the withdrawal day is not counted) (Bui Thi Hoai Thu, 2014). Interest rate of demand deposit (annual) x number of actual deposit days Interest = 360 - Interest payment method: The interest is paid or monthly added to the principal on the closing date. (3) Time deposit When individuals deposit money into a bank with a time deposit on the agreement between customers and the bank about the time and prescribed interest rates, the customers can only withdraw money on due date. In theory, when customers use this type of deposit, they are not allowed to withdraw the money before due date. However, to increase competition in attracting deposits, some banks still allow customers to withdraw money before due date and enjoy flexible interest under the policy of interest payment policy of the bank in each period. - Concept: Time deposit is a type of savings account that depositors can only withdraw money after a certain deposit time as agreed with the deposit receiver (Nguyen Thi Minh Hien, 2007). - Objects and scope of application: Similar to demand deposit. - Customer benefit: Serving the accumulating purpose and enjoying high interest rates. 10