Tài liệu The impact of payment service quality on market share expansion of napas

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- ĐINH THỊ BÍCH HẠNH THE IMPACT OF PAYMENT SERVICE QUALITY ON MARKET SHARE EXPANSION OF NAPAS ẢNH HƯỞNG CỦA CHẤT LƯỢNG DỊCH VỤ CỔNG THANH TOÁN ĐIỆN TỬ ĐẾN VIỆC MỞ RỘNG THỊ PHẦN CỦA NAPAS LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH Hà Nội - 2017 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH --------------------- ĐINH THỊ BÍCH HẠNH THE IMPACT OF PAYMENT SERVICE QUALITY ON MARKET SHARE EXPANSION OF NAPAS ẢNH HƯỞNG CỦA CHẤT LƯỢNG DỊCH VỤ CỔNG THANH TOÁN ĐIỆN TỬ ĐẾN VIỆC MỞ RỘNG THỊ PHẦN CỦA NAPAS 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: PGS.TS. NGUYỄN NGỌC THẮNG 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………………………….. i ACKNOWLEDGEMENT I would like to express my deep gratitude to the teachers of the Hanoi school of Business and Management, Vietnam National University, especially the teachers who imparted to me a lot of knowledge and helped me carry out this thesis. I would like to express sincere gratitude to Dr.Nguyen Ngoc Thang has spent a lot of time, dedicated guidance, only told me during the course of the topic. I would like to express my sincere thanks to the Board of Directors of National Payment Corporation of Viet , help me in collecting data and information needed for the study of this thesis. I sincerely thank family, friends and colleagues for encouraging and supporting me in the process of study and research. Hanoi, date 22 month 5 year 2017 Student DINH THI BICH HANH ii THE IMPACT OF PAYMENT SERVICE QUALITY ON MARKET SHARE EXPANSION OF NAPAS 1. Summary of the results The study was an interview with 300 clients in Hanoi who were using NAPAS payment gateway services, ages 15 to 50. The purpose of the study was to assess the factors that affect the quality of NAPAS e-payment gateway services, thus assessing the need to expand the market share of the company's service delivery. After studying and analyzing, the author makes conclusions on the factors affecting the quality of NAPAS epayment gateway services such as stability, efficiency, safety, security and an interface friendliness level is the factor that has the greatest impact on stability. It affects the level of satisfaction of customers with the quality of services provided by company, thereby affecting the company's ability to expand its market share. However, the level of interface friendliness is also a major factor that customers interested. Most customers are not satisfied with the stability of the e-payment gateway services. They expected that NAPAS card service will be more stable and friendly interface in the near future. In addition, when conducting the research on the quality of e-payment gateway services and NAPAS's ability to expand its market share, most of the customers interviewed highly valued the services. From that, it will be decided to use the e-payment gateway service and will recommend it to their friends and relatives to use. In addition, customers are also relatively confident in NAPAS's ability to grow its market share as well as expand its customers. They found that NAPAS is on the rise to enhance its ability to serve more customers in the future and e-payment gateway services provided by NAPAS have superior advantages over competitors. 2. Applicability in practice Research will be a valuable reference resource to help NAPAS managers find out the factors that affect the quality of e-payment gateway services as well as the company's ability to expand its market share. In addition, the research also helps the management know that customers are evaluating the quality of the products they provide, so that they can adapt to the needs of their customers. The research is based entirely on the practice of the company, so iii management can consider and apply solutions to improve service quality as well as expand market share in delivery service. 3. Further research orientations Firstly, future research can be conducted with the majority of customers currently using the company's e-payment gateway services to gain a broader understanding of customer expectations. Secondly, it will conduct surveys to assess the opinions of both customers who do not use e-payment gateway services and who are using this service of other companies for gaining specific information to having a better problem solving, while also facilitating the expansion of new market share. Thirdly, carrying out research on legal documents related to e-payment system so that the people of our country in general and customers of the company in particular are aware of the problem of using the payment gateway service is safe and protected by law In addition, research can continue to develop in the direction of the impact of social factors of customers (trends, ...) on the e-payment gateway services. iv TABLE OF CONTENTS DECLARATION .................................................................................................................. i ACKNOWLEDGEMENT...................................................................................................ii TABLE OF CONTENTS .................................................................................................... v ABBREVIATION .............................................................................................................viii LIST OF FIGURES ............................................................................................................ ix LIST OF TABLES ............................................................................................................... x INTRODUCTION ............................................................................................................... 1 1. Rationale- ..................................................................................................................... 1 2. Literature review ......................................................................................................... 2 3. Aims of research .......................................................................................................... 5 4. Objects of research ...................................................................................................... 6 5. Scope of research ......................................................................................................... 6 6. Research methodology ................................................................................................ 6 7. Thesis structure ........................................................................................................... 8 CHAPTER 1: THE THEORETICAL BACKGROUND ................................................. 9 1.1 Overview of the service quality, electronic payment service and market share . 9 1.1.1 The basic definitions ....................................................................................... 9 1.1.2 Characteristics of service quality of electronic payment .............................. 11 1.1.3 Factor affecting the service quality of electronic payment ........................... 11 1.1.4 Factor affecting the market share expansion ................................................ 13 1.2 Assessment models for service quality of electronic payment and relationship of the service quality with a extended section ................................................................. 14 1.2.1 Assessment model for service quality of electronic payment ...................... 14 1.2.2 The relationship between service quality and market share expansion ........ 18 1.2.3 Research modeling ....................................................................................... 19 1.3 Indicators to assess market share expansion ........................................................ 21 1.3.1 Revenue ........................................................................................................ 21 1.3.2 Market Share................................................................................................. 21 1.3.3 The number of business cooperation partners. ............................................. 22 v 1.4 Practical experience on improving service quality to expand the market share of some enterprises ........................................................................................................ 23 1.4.1 The experience Lazada of e-commerce business......................................... 23 1.4.2 The experience of Hung Phat manufacturing enterprise .............................. 23 1.4.3 The lessons learned for Napas ...................................................................... 24 CHAPTER 2: ANALYSIS THE CURRENT SITUATION........................................... 25 2.1 Introduction about NAPAS.JSC ............................................................................ 25 2.1.1 The process of formation and development ................................................. 25 2.1.2 Introduction about electronic payment gateway service (NAPAS Payment Gateway) ................................................................................................................ 26 2.1.3 Business operation results of the company................................................... 27 2.2 Actual situations on market share of NAPAS JSC .............................................. 29 2.2.1 Actual situation on the revenue of NAPAS JSCin comparison with other companies in the same field................................................................................... 29 2.2.2 Market share in rendering services of NAPAS JSCin the market ................ 31 2.2.3 Number of major partners of NAPAS JSC in comparison with other companies in the same field................................................................................... 32 2.2.4 Activities of NAPAS JSC in the market share expansion ............................ 33 2.3 Analysis of survey results ....................................................................................... 35 2.3.1 Descriptive Statistics .................................................................................... 35 2.3.2 Scale test ....................................................................................................... 38 2.3.3 Factor Analysis ............................................................................................. 41 2.3.4 Correlation and regression analysis .............................................................. 43 2.3.5 Assessment on survey results for the factors in the model ........................... 48 CHAPTER 3: SOLUTIONS AND RECOMMENDATIONS ........................................ 59 3.1 Solutions to improve the quality of electronic payment service ......................... 59 3.1.1 Training the technical staff of the company ................................................. 59 3.1.2 Completing the system interface gateway payment services of the Company to raise the level of customer friendliness. ............................................................ 60 3.1.3 Expanding cooperation, linking with organizations large e-commerce, popular with users of Vietnam............................................................................... 61 vi 3.1.4 Investment and application of modern technology, advance to the work raising, improve the quality of the system's electronic payment gateway company to avoid limiting condition system crash. .............................................................. 62 3.1.5 Other solution ............................................................................................... 62 3.2 Solutions expand market share of NAPAS ........................................................... 63 3.2.1 Solution to attract customers using NAPAS e-payment portal .................... 63 3.2.2 Group solutions to improve the security of electronic payment of NAPAS 64 3.2.3 Solutions for the development of customer support services ....................... 65 3.2.4 NAPAS brand building and development solutions ..................................... 66 3.3 Recommendations to relevant units ...................................................................... 67 3.3.1 Information technology infrastructure .......................................................... 67 3.3.2 Legal infrastructure ....................................................................................... 68 3.3.3 Training and promotion of electronic payment development cooperation ... 69 CONCLUSIONS, LIMITATIONS AND RESEARCH IMPLICATIONS .................. 70 REFERENCES................................................................................................................... 73 APPENDIX ......................................................................................................................... 74 vii ABBREVIATION Abbreviation Meaning of acronym 3D Three-dimensional images UK United Kingdom IEC International Electrotechical Commission NAPAS JSC National Payment Services Joint stock company ISO International quality standard ATM Automated Teller Machine POS Point of Sale viii LIST OF FIGURES Model 1.1: Scale for service quality assessment SERVQUAL ........................................... 16 Model 1.2: The assessment model forquality of online banking service ............................. 17 Model 1.3: Research model under ISO 9126 standard ........................................................ 17 Model 2.4: Research model of the author Liliana Solís (2011) .......................................... 18 Model 2.5: Proposed asessment model of quality of electronic payment gateway of the topics .................................................................................................................................... 19 Figure 3.1: Electronic wallet technology model .................................................................. 65 ix LIST OF TABLES Table 2.1 : Business operation results of the Company ....................................................... 28 Table 2.2 Revenue of NAPAS JSCin comparison with other companies ........................... 30 Table 2.3 Market share in rendering services of NAPAS JSC ............................................ 31 Table 2.4 Major partners of NAPAS JSCin comparison with the ones of other companies 32 Table 2.5 Activities to expand market share of NAPAS JSC .............................................. 33 Table 2.6: Descriptive Statistics on the characterization of survey samples ....................... 35 Table 2.7 Results of testing the reliability of the scale ........................................................ 38 Table 2.8 Results of factor analysis with independent variables ......................................... 41 Table 2.9 Results of factor analysis with two dependent variables ..................................... 42 Table 2.10 Correlation matrix of the factors ........................................................................ 43 Table 2.11 Analysis results of the impact of factors on service quality of NAPAS ............ 44 Table 2.12 Analysis results of the impact of service quality on market share expansion ... 46 Table 2.13 General results of testing research hypothesis ................................................... 47 Table 2:14 Impact of efficiency on the quality of company‟s electronic payment gateway 48 Table 2:15 Impact of the stability on the quality of electronic payment gateway of the company ............................................................................................................................... 50 Table 2:16 Effectiveness of safety, security, quality of electronic payment gateway ......... 51 Table 2.17 Consistency influence to the quality of the electronic payment gateway .......... 53 Table 2.18 Influence of the level of the friendly interface to the quality of the electronic payment gateway ................................................................................................................. 54 Table 2.19 Evaluate service quality through electronic payment gateway .......................... 55 Table 2.20 Evaluate expanding market share ...................................................................... 57 x INTRODUCTION 1. RationaleNowadays, electronic payment has been a very common payment type in developed countries. The online payment service has been made very easy by bank transfer and credit card. For developing countries as Vietnam, electronic payment service has entered into the first stage of the development process. The application of electronic payment service in enterprises has been growing rapidly with a lot of improvements. There are enterprises providing electronic payment service, typically Paynet and Vnpay. Banks also pay more attention to electronic payment service , most of banks have online banking services such as Vietcombank, Vietinbank, Techcombank... Besides, payment service are also being gradually improved, typically National Payment Services Joint stock company (NAPAS) and Banknetvn. NAPAs is managing and operating a system interconnect network of 16,800 ATMs and 220,000 POS machines, more than 90 million cards of 43 commercial banks in the country and internationally active in Vietnam. NAPAs provide payment services with over 200 firms in the airline sector, telecommunications, hotels, tourism and electronic payment services for other utilities customer. This is one of the successes of NAPAs, however the fierce competition and quality of payment service is limited, such as:Risk warning system, Risk Management System. Beside, NAPAs has not friendly connected many popular e-commerce websites. As a company providing and developing payment service, NAPAS JSC also needs to assess the effect of the quality of payment service system on their expansion in market share. Therefore, the model for quality assessment of electronic payment service system of the company has been researched and considered. This model has been applied to find out the advantages and limitations of payment service quality of the company and then find out solutions in order to expand the company‟s market share in the next time. From this fact, I choose the topic: " The impact of payment service quality on market share expansion of NAPAS " for my graduation thesis. In Vietnam, there is no report on the effectiveness evaluation of payment service quality on the market share expansion of NAPAS, so this thesis is one of the first reports which learns about the quality assessment of the NAPAS‟ payment service. Hope that this thesis will contribute to the improvement and the development of the payment service of NAPAS. 1 2. Literature review To research my thesis, I focus on studying related documents for my research process. There are three groups in literature: (1) Thesis that relates to payment service and payment service quality of online business; (2) Case study on assessing the payment service quality (in Viet Nam and abroad); (3) Experimental studies on the relationship between service quality and market share. (1) Thesis Hung, Nguyen Tran (2010) completed a thesis named as “Payment in electronic commerce”. The thesis includes three chapters providing basic theories of payment activities in electronic commerce as well as current e-payment system. In addition to payment in electronic commerce, this thesis also provides perspectives on security technology in electronic payment. This thesis also emphasizes the importance, benefits and limitations of payment in electronic commerce. Besides theoretical basis of payment in electronic commerce for seizing the growth of electronic commerce in our country today, the thesis also provides illustrations of e-commerce in some developing countries, etc... It can be said that the thesis has clearly depicted the concept of electronic payment and its importance in the current integration economy. Hy, Le Van (2009) with the thesis of “Online payment and electronic wallet”. This thesis is one of the important documents which provides me basic theories of electronic payment as well as electronic wallet. Firstly, the author confirms that in Vietnam, electronic commerce has achieved enough conditions to develop to a new altitude. Along with electronic commerce development, the system of electronic payment service also develops in order to cater for this development. In which, the author highlights the concept of e-payment (online payment) and electronic wallet and the author lists companies currently providing electronic payment service in Vietnam and their advantages and limitations. The application of this document in assessing quality of electronic payment service shows that to improve service quality of electronic payment , the companies in this new field must have specific strategies and plans to overcome the limitations as well as promote the obtained advantages in the next time. Tyree, A. (2000) published a thesis that named as “Virtual Cash - payment on the internet”. This thesis provides basic and clear concepts of online payment method. Besides, the thesis gives basic criteria to assess the quality of online payment service 2 systems and online payment models which are being applied popularly today. This is an important content in analyzing and assessing the effect of service quality of electronic payment on the development, expansion in the market of companies providing this service. In my thesis, I will use the collected knowledge in the thesis to build the research model to assess service quality of electronic payment of NAPAS JSC. In 2011, a group of researchers at University of Economics Ho Chi Minh City finished a research with the title of “Research actual situation of electronic payment system in Vietnam and propose solutions and recommendations to provide Website nganluong.Vn”. The contents of this work focus on the concepts of electronic payment system, characteristics of each system and their advantages and disadvantages. The research presents the development of electronic payment form in the world and in Vietnam, at the same time, the research also provides some popular electronic payment models which are often applied today. Besides, the thesis highlights factors affecting electronic payment service system in Vietnam and conducts research on successful intermediary website about electronic payment in foreign countries and in Vietnam. Its purpose is to find out the way of development of electronic payment in our country. Therefore, companies providing electronic payment service must always be active in their business activities, building appropriate business strategies and overcoming the limitations to create premise to increase revenue and expand market share. The job is one of the effective contributions to NAPAS JSC in improving their service quality of electronic payment. (2) Case study So, in recent years, there have been many research projects on the quality of electronic payment service as follows: Choi, Stahl & Whinston (2010) carried out a study with the topic of “Assess the quality of electronic payment service system”. The topic is presented quite specifically and in details the concept of electronic payment system as well as the factors affecting the quality of electronic payment of companies providing this service in the United States. Through the presentation of the theoretical basis for electronic payment service, by using SPSS software to process collected data, the authors analyze and point out advantages and limitations in the quality of electronic payment service in the United States. Based on this actual situation, the authors have proposed solutions to improve and enhance the quality of 3 this electronic payment . However, some measures which the authors propose are still general, not specific. Craig D.Mason (2011) has completed a research named as “Effect of the quality of electronic payments service to increase the sales of service companies”. This topic is the application of previous theoretical basis in analyzing the effect of electronic payment service quality on the market share expansion of service companies. Besides analyzing the actual situation of the electronic payment quality of service companies in the UK, the author also focuses on analyzing the effect of the quality of electronic payment service on the development, increase in revenues of the companies providing this service. The data are collected by interviewing customers who have used electronic payment service of the companies providing this service in the UK. The research results have a great contribution to the quality improvement of electronic payment service for the companies in the UK. Hung, Le Duy (2013) ran a study about “The payment in electronic commerce in Vietnam”. The research has focused on presenting the main theoretical basis of payment problem in electronic commerce, payment process in electronic commerce. Thereby, the research also strongly focuses on presenting actual situation of developing electronic payment in some enterprises in Vietnam for the period of 2010-2014. Based on the results of the actual situation analysis and surveys, customer evaluations, the authors build strategic solutions for electronic payment development in Vietnam during the period of 2015 -2020. However, because the research topic is quite general and research problem is quite broad, the topic cannot be in the details and delve into research problem. Tung, Le Duc (2014) has done a study about “Project on electronic payment for Vietnam enterprises”. The topic focuses on researching the project on electronic payment development for enterprises in Vietnam. The research has also focused on presenting some basic problems about electronic payment service at enterprises in our country and the actual situation of the quality of this electronic payment. The research results also present that the safety and security of customer financial information are important contents affecting the quality of electronic payment of enterprises in Vietnam. However, the solutions proposed by the authors are not specifying and in details for the orientation of improving the quality of electronic payment in Vietnam in the next time. (3) Experimental studies that relate to issues of service quality and expand market share 4 In fact, the author did not find any research that shows directly the content of the relationship between service quality and expand market share. However, some of following studies may useful in interpreting this relation. Zeithaml et al (1996) with the research of "The behavioral consequences of service quality" that was published in the Journal of Marketing show many instructions for this relation. In this research, the authors said that “…Findings from these studies show that companies offering superior service achieve higher-than-normal market share growth (Buzzell and Gale 1987), that the mechanisms by which service quality influences profits include increased market share and premium prices (Phillips, Chang and Buzzell 1983)”. This means that the higher service quality that company offer, the larger market share they achieve. Rust, Roland T and Anthony J. Zahorik (1993) have a study named "Customer satisfaction, customer retention, and market share”. In this study, the authors cited the conclusion of Fornell and Wernerfelt (1997, 1998) that “marketing resources may be better spent keeping existing customers than attracting new ones”. This means that, if companies spend on improving the service quality (one of marketing strategy) to keep their current customers, they could be more beneficial than attracting new customers (and thus, maintain the market share). On the other hand, many researchers (Trang, 2006) support for the conclusion that “the customer satisfaction and customer loyalty are positive relation”. Therefore, increase the service quality will lead to increase the customer satisfaction and, thus keeping the current customer (because of increasing in the level of loyalty), and maintain the market share. In addition, when the customers have more satisfied, they will introduce to others and lead to expansion of market share for the company. In summary, through the reviewing some related studies around the world and in Vietnam, the documents that author conducted research as above has provided the author with the most basic knowledge about services of electronic payment, and the impact of service quality of electronic payment to expand the scale, the share of the company provides this service. Through this thesis, the author will use to build models of assessing service quality of electronic payment of NAPAS; simultaneously, that gives the author an important theoretical basis to apply in this research. 3. Aims of research 5 3.1 Overall aims Do research on the actual situation of the quality of payment service at NAPAS JSC to find out solutions to improve quality of payment service which helps expanding the company's market share. 3.2 Detail aims - Systematize the basic theoretical issues about the electronic payment and quality of electronic payment service. - Assess the effect of factors affecting the quality of electronic payment service and then find out its effect on expanding market share of NAPAS. - Find out the advantages and limitations in activities of electronic payment service at NAPAS. - Propose solutions to improve quality of electronic payment service to expand market share of NAPAS and give recommendations to relevant units. 4. Objects of research The main object of this research is “The impact of the electronic payment quality on the market share expansion of NAPAS company”. 5. Scope of research Location scope: The research is carried out at NAPAS JSC. The research is carried out from Aug, 2016 to Dec, 2016. Solutions applicable until 2020 for NAPAS JSC. 6. Research methodology Proposed research model: The model of the topic is synthesized and built from previous researches. In which: Reliability 6 Based on Paret and Lyapunov, 2000. Stability of the system Based on Paret and Lyapunov, 2000. Safety and security of the system Safety (confidentiality) based on Nguyen Ngoc Hien, 2003. The security based on Gary P.schneider, 2000. Consistency This is characteristic to ensure the accuracy of electronic payment system, including pricing, tax, product information, etc...(Nguyen Ngoc An and Nguyen Van Hoang, 2003). Friendliness of the interface Friendliness of the interface is the way to lay out products on the website, provides users with product information or services, which are provided by electronic payment system (Tran Ba Thai, 2005). Service quality The author builds a model to assess the effect of factors on the quality of the electronic payment service based on original assessment model of service quality of Parasuraman (1988). Method Qualitative research: Qualitative research is used through group discussion. In group discussion, the author will run a survey of 30 people as follows: - 3 managers, - 2 customer service staffs - 25 customers who use payment services of NAPAS. The purpose of qualitative research is to discover, adjust and supplement the concepts of research scale. Interview results show that all interviewees agree with the factors given by the author about the effect of payment service on customer satisfaction. Therefore, the author uses this factor group to conduct research. Quantitative research: The results of qualitative research will be used for quantitative research. When determining the factors affecting customer satisfaction and market share expansion of NAPAS, the author continues to quantitative research. To carry out this research, the author builds questionnaires and does surveys. The numbers of customers that the author surveys are 300. 7 Sample size: Roger (2006) presents that minimum sample size for practical researches is about 150-200 observations. According to the opinion of Hair, Anderson, Tatham and Black (1998), the minimum sample size required for the research is calculated by n*5 (n: number of questions). In this research, based on the proposed model, there are about 30 questions in the questionnaire. Then, the minimum number of samples required is 30 * 5 = 150 observations. To have a high generalization, the author selected a sample size of 300 observations. The author intends to interview customers by meeting them directly and interviews via telephone. In addition, the author also collects information on customer conference of the company which is annually held. This is a good opportunity for the author to collect many ideas of customers at the same time. Data and time: + Secondary data: secondary data will be collected at NAPAS in the period from 2011 to 2015; + Primary data: The research will focus on collecting primary data within 3 weeks from 2nd September, 2016 to 20th September, 2016. 7. Thesis structure The intended thesis structure as following: (Not include Introduction and Conclusion) CHAPTER 1: THEORETICAL BACKGROUND CHAPTER 2: ANALYSIS THE CURRENT SITUATIONS CHAPTER 3: SOLUTIONS AND RECOMMENDATIONS 8