THEORETICAL BASIS
Theory basis
There are many definitions of services offered and service researchers can understand:
In marketing and business, the concept of service is essential and can be defined in various ways According to Valarie A Zeithaml and Mary Jo Bitner, "Services are behaviors, processes, and ways of doing things to create value, satisfying the needs and expectations of customers" (Zeithaml & Bitner, 2000) This definition highlights the importance of understanding services as a means of delivering customer satisfaction and value.
Service is an intangible activity or series of activities that occurs during interactions between customers and service personnel, as well as physical resources or supply systems, aimed at providing solutions to customer problems (Grönroos, 1990).
Service involves a combination of back office operations and direct interactions between customers and service providers, aimed at meeting customer needs and expectations This interaction not only fulfills customer desires but also generates value for them, as highlighted by Bui Nguyen Hung (2004).
Banking services, especially card services, are crucial for the success and profitability of banks during challenging times These services significantly contribute to the financial growth of banks today.
Card services represent a modern banking solution that has emerged from advancements in science and technology With their exceptional features, these services offer enhanced convenience for customers, leading to their rapid adoption as a preferred choice in the banking sector.
2 popular and popular non-cash payment service in the world And now, the card is gradually asserted its position in payment activities in Vietnam
Services are unique offerings that possess distinct characteristics, setting them apart from traditional goods Key attributes include invisibility, heterogeneity, inseparability, and the inability to be stored These qualities contribute to the challenges in quantifying services and make them difficult to perceive visually.
Services are intangible and cannot be physically touched, weighed, or measured like tangible products Unlike physical goods, which often require inspection and quality testing before purchase, services lack the ability to provide samples or trials As a result, customers can only assess the quality of a service through direct experience, making it essential to engage with the service to fully understand its value.
Service differentiation refers to the varying performance levels of a service based on factors such as the type of service, the service provider, the staff involved, the duration of the service, the geographical area, the target audience, and the specific location Additionally, even within the same category of service, there can be multiple tiers of performance quality.
Assessing service quality can be challenging due to the varying perceptions of "high" and "popular" versus "secondary" services This complexity arises from the lack of a standard measurement, as many relevant factors influence the evaluation in each unique situation Additionally, the inseparable nature of service delivery and consumption further complicates the assessment process.
The indivisibility of services highlights the challenge of separating production and consumption phases, as both occur simultaneously Unlike goods, which are produced, stored, and then delivered to consumers, services are created and utilized throughout the entire process In the case of commodity products, customers serve solely as end-users; however, in the realm of services, customers actively participate in the process, making them integral to the service delivery.
3 service creation process In other words, the attachment of these two processes makes the service complete d Unstored
Services cannot be stored or sold like physical goods; they are consumed at the moment of delivery and cannot be reserved for future use This means that once a service is provided, it is complete and cannot be reused or recovered Consequently, services are unique products that are utilized immediately and have a brief lifespan.
Service quality is defined in various ways, but fundamentally, it reflects the customer's perception and experience Since each customer has unique needs and expectations, their understanding of service quality varies significantly.
According to Edvardsson et al (1994) , “Quality of service is a service that meets the expectations of customers and is aware of them when they use the service”
Service quality is defined as the capacity of a service to fulfill customer needs and expectations, as noted by Lewis & Mitchell and Dotchin & Oakland.
According to Armand Feigenbaum, "Quality is the customer's decision based on actual experience with the product or service, measured based on customer’s demands
- these demands can be raised or are not raised, consciously or simply felt, totally subjective or professional - and always represent dynamic goals in a competitive market."
"Quality demonstrates the excellence of goods and services, especially to the extent that people can satisfy their needs and satisfy their customers."
According to Parasuraman, the quality of service is defined as the gap between customer expectations and their assessment of the service received He introduced the five-gap model and identified five key components of service quality, collectively known as Servqual, a term derived from "Service" and "Quality." This framework is widely regarded by researchers as a comprehensive approach to understanding service quality.
Servqual is continually refined by emphasizing the consumer's "quality perception," as customer evaluations serve as the most objective measure of service quality (Svensson, 2002).
Previous research models
The SERVQUAL model, developed by Parasuraman in 1985, is a widely used composite measurement tool to assess service quality, building on Gronroos's model from 1984 This model utilizes a Likert scale to separately measure customer expectations and perceptions of service quality, with the quality of service calculated as the perceived level minus the expected value Comprising 10 key components, including tangible means, trust, response, capacity to serve, approach, need, information, safety, and understanding, the SERVQUAL scale provides a comprehensive framework for evaluating service quality across various industries.
In 1988, Parasuraman and his colleagues refined the five key components of the widely used service quality model in marketing research They emphasized that service quality is not a universal measure; rather, it is shaped by the customer's perception, which is influenced by various factors.
Figure 1.3: Factor influencing customer satisfaction by Parasuraman and partners (1988)
The SERVQUAL model evaluates service quality by comparing customer expectations with their perceptions, utilizing a ladder approach for analysis This measurement involves 22 observations across five key criteria.
Reliabilities the ability to provide accurate, punctual and reliable service This requires consistency in service performance and respects commitments as well as
14 keeping promise to customers In the banking sector, this criterion is usually measured by the following scales:
Bank makes the right service right from the first time
Bank provides service at the time they promised
Bank makes the service correctly without mistakes
Bankers are always ready to serve customers
Bank always has staff to consult customers at desk
Bank sends statement regularly in the right time
Service effectiveness measures the ability to swiftly resolve issues, address complaints efficiently, assist clients willingly, and fulfill customer needs Essentially, it reflects how well the service provider responds to the specific desires of the customer.
Bankers are ready to help customers
Bank provides services in the right time
Bank responses positively customer’s demands
Bank has hotline to serve 24/24
Bank always tries to handle problems for customers
Physical visibility encompasses the external image of a bank's facilities, equipment, machinery, staff morale, documentation, manuals, and communication systems Essentially, it includes everything that customers can perceive through their senses, which can significantly impact their overall experience and perception of the bank.
Bank has modern equipment and machinery
Bankers look nice and professional
Bank offices and counters are decorated logically and conveniently
Credibility and trust are essential for customers when utilizing banking services, which can be fostered through professional service, expert knowledge, elegant style, and effective communication These elements work together to ensure customers feel at ease and confident in their banking experience.
Clear and easy-to-understand document
Bankers always provide correct and adequate information for customers
Reply clearly and correctly customer’s concerns
Sympathy in customer care involves providing personalized attention to make clients feel like valued guests at the bank By ensuring a warm welcome at all times and in every location, the bank emphasizes the importance of the human element in fostering strong customer relationships As the bank's interest in its clients grows, so does the level of empathy, leading to greater customer satisfaction and loyalty.
Customers do not need to wait for a long time
Convenient counters/offices to make transaction
Modern and easy-to-use ATM systems
Bankers take care customer well
1.2.2 SERVPERF model of Cronin and Taylor (1992)
The SERVPERF model, developed by Cronin and Taylor in 1992 as a refinement of the SERVQUAL model, posits that service quality is equivalent to the perception level of customers This concept is backed by research from Lee et al (2000) and Brady and Cronin Jr (2002) While the SERVPERF scale employs 22 questions akin to those in the SERVQUAL model, it notably excludes inquiries regarding customer expectations across five key components.
- Reliability: ability to perform exactly at the first time
- Responsiveness: Express through the willingness, willingness of the service staff to provide timely service to customers
- Assurance: This is reflected in the professional level and the courteous and hospitable service to customers
- Empathy: Show interest, customer care
- Tangibles: Shown by appearance, staff costume, equipment for service
1.2.3 Satisfaction index model of American customers-ACSI
In 1994, the American Customer Satisfaction Index (ACSI) was introduced, marking a significant advancement in customer satisfaction measurement This model incorporates key variables such as customer expectations, perceived quality, and perceived value Through customer satisfaction research, businesses can uncover insights into customer loyalty and complaints, enabling them to develop effective strategies for improvement.
In the ACSI model, perceived value is shaped by perceived quality and customer expectations, with customer expectations directly influencing perceived quality Essentially, as customer expectations increase, so does their perception of the product's quality, highlighting the reciprocal relationship between expectations and perceived quality.
Figure 1.4 American Customer Satisfaction Index Model
1.2.4 Satisfaction index model of EU countries customers
The European Customer Satisfaction Index (ECSI) model differs from the American Customer Satisfaction Index (ACSI) in that it emphasizes the direct influence of brand image on customer expectations Customer satisfaction, according to ECSI, results from the interplay of four key factors: image, perceived value, and the perceived quality of both tangible and intangible products While the ACSI is primarily suited for assessing public sector performance, the ECSI is frequently utilized to evaluate customer satisfaction across various products and industries.
Figure 1.5: European Customers Satisfaction Index Model
The Customer Satisfaction Index (CSI) approach offers a significant advantage by directly impacting the consumer experience, enabling the examination of the causal relationship between the key components of customer satisfaction and loyalty By adopting a structured approach, CSI aims to explain customer loyalty to a specific product or business, or a nation as a whole, through a satisfaction index influenced by factors such as image, expectations, perceived quality, and perceived value of the product or service.
LITERATURE REVIEW AND RESEARCH MODEL
Literature review
In the article "Solutions to Develop the Form of Card Payment in Vietnam," Nguyen Danh Luong (2003) examines the current state of payment systems in the country, focusing on the analysis of disputes and risks associated with card operations The study offers valuable lessons, solutions, and recommendations aimed at minimizing losses, reducing risks, and enhancing the card payment market in Vietnam However, it is important to note that Dr Luong's research provides a general overview of the Vietnamese payment card market without delving into a detailed analysis of the various card types offered by different banks.
In his 2004 work, "The Basic Solution for the Development of the Bankcard Market in Vietnam," Tran Tuan Loc provides a comprehensive overview of bank card theories and an analysis of the banking market in Vietnam He offers targeted solutions for enhancing the bankcard market, presenting a more detailed examination than Dr Nguyen Danh Luong, particularly regarding the variety of cards issued by various credit institutions However, Loc's insights remain largely macro-level analyses and solutions.
The article "Develop Card Business at Vietnam Joint Stock Commercial Bank for Foreign Trade of Quang Nam" by Do Quang Thach (2011) provides a comprehensive analysis of the card services offered by Quang Nam Bank for Foreign Trade of Vietnam, covering aspects from issuance to usage It establishes a strategic direction for the bank's card business development, emphasizing the importance of collaboration with the State, the Card Association, and the State Bank of Vietnam (SBV) However, the author primarily focuses on the card business itself, lacking a detailed exploration of the payment functions associated with the cards.
In his 2009 thesis, "Solutions to Develop Card Services Business at the Commercial Bank for Foreign Trade of Vietnam," Nguyen Cao Phong aims to propose practical strategies that address existing limitations and enhance the card services offered by VCB These solutions are designed to not only improve VCB's offerings but also to contribute positively to the overall card market in Vietnam, aligning with international and regional economic trends.
In the study "Factors Influencing the Decision to Choose Debit Cards: Case of Student Customers" by Hoang Thuy Linh (2013), consumer behavior and debit card usage were analyzed through quantitative research involving 168 student respondents from Hanoi Mine University and National Economics University in Vietnam The research identified over 18 factors that affect the decision to use debit cards, highlighting key influences such as the service attitude of bank employees, the bank's reputation, the safety of debit card usage, ease of use, and the availability of ATM and POS networks.
The introduction of friends and relatives as influencers significantly impacts the adoption of debit cards among customers This research provides a comprehensive analysis of the factors affecting customer behavior; however, it has a limitation as it exclusively targets one demographic—students—while neglecting other customer segments.
The thesis by Vo Thi Phuong Diep (2015) provides an in-depth analysis of customer satisfaction regarding Maritime Bank's ATM card services It evaluates critical factors influencing customer experiences, including convenience, terms and procedures, fees, network availability, staff performance, withdrawal risks, security, and customer care The findings offer valuable insights that enable the author to propose recommendations for enhancing the bank's services.
Research on the factors influencing customer choice and satisfaction in banking card services is limited, despite being a key objective for banks As the branch plans to enhance its card services over the next five years, management and relevant departments have brainstormed numerous ideas to support this initiative This thesis aims to contribute to the branch's card service development plan and strengthen the recognition of BIDV cards among customers.
- Assess and measure the level of customer satisfaction using ATM card services at BIDV
- Analyze the factors that affect customer satisfaction when using BIDV ATM cards through research models, test hypotheses on the relationship between service quality
20 components, gender characteristics, age, income, and customer satisfaction From then propose solutions to further improvement of the satisfaction of customers using ATM cards of BIDV
- From the results of the research, suggest some solutions to improve the satisfaction of customers using ATM card services of BIDV
- ATM card service of BIDV
- Interview data from customer groups using ATM cards
Scope of space: The survey is conducted in the location of Ha Noi, at some transaction points of BIDV systems
+ Survey will be handed out and collected in the beginning of August
+ Other data from annual reports of BIDV in the period of 2018-2020
This article explores the key factors influencing customer satisfaction with BIDV ATM cards and examines how these factors impact overall user experience By identifying critical elements such as ease of use, accessibility, transaction speed, and customer support, the analysis highlights their significant role in enhancing customer satisfaction Understanding these dynamics is essential for improving services and meeting customer expectations effectively.
Building hypothesis and research models
2.2.1 Service quality and customer satisfaction using ATM card
Parasuraman et al (1994) highlight a key controversy in evaluating quality and satisfaction, focusing on the distinction between specific transactions and overall assessments Service quality researchers argue that satisfaction stems from individual transactions, while quality is viewed as a broader evaluation developed over time In contrast, satisfaction researchers present differing perspectives on this relationship.
The author contends that evaluating service quality cannot be reduced to a simple high or low assessment; instead, it should be measured using a variety of scales that capture the multifaceted nature of service components.
The SERVQUAL model, as outlined by Nguyen Dinh Tho (2007), identifies five key components that influence service quality and customer satisfaction related to ATM card usage This qualitative research highlights the significant impact of service sensitivity on overall service quality, aligning with the framework established by Parasuraman.
H1: Reliability has a direct impact on customer satisfaction, as the reliability of ATM cards is appreciated by customers, the level of customer satisfaction will increase and vice versa
H2: Customer empathy has a significant direct impact on customer satisfaction, as customer empathy for ATM cards increases, customer satisfaction increases and vice versa
H3: Tangible significantly has influence on customer satisfaction, as the tangible assets of ATM cards are appreciated by customers, the level of customer satisfaction increases and vice versa
The efficiency of banking services related to ATM cards has a direct impact on customer satisfaction; when these services are responsive to customer needs, satisfaction levels rise, while a lack of efficiency can lead to decreased satisfaction.
H5: Assurance has a significant direct impact on customer satisfaction, as the bank's assurance of ATM cards is appreciated by customers, the level of customer satisfaction will increase and vice versa
2.2.2 Perceived price and customer satisfaction
Customer satisfaction is primarily influenced by perceived quality and perceived value, as highlighted by Fornel (1996) It stems from customer perceptions, where value is determined by the interplay between the perceived quality of service and its price (Bexley, 2005; Hallowell, 1996) The price is subjectively assessed by customers in relation to offerings from other suppliers (Nguyen Dinh Tho, 2007) In this study, perceived price encompasses interest rates and service fees compared to other banks, with payment demands including business loans, real estate loans, car loans, and consumer loans.
and service fees are fees for money transfer, statement printing fee, card fees, fees for online banking services The next hypothesis is in place:
H6: Perceptive Price has a significant direct impact on the customer satisfaction When customers feel the price of their ATM service is high or low, customer satisfaction increases or decreases
While some studies identify the location of ATM machines as the seventh factor influencing customer satisfaction, this thesis deliberately excludes it for specific reasons.
BIDV, one of the four State-Owned Commercial Banks (SOCBs) in Vietnam, boasts 189 branches and an extensive network of ATMs across the country, making it easy for customers to access cash However, common issues such as "ATM not in operation" and "lack of large denominations" have been frequently reported through customer complaints at branches and the customer care center.
- Some previous researches that had choose this 7 th factor in their model concluded that there may not or a little affection to customer satisfaction
That explains why I decide to reject this factor out of 6-factors model mentioned above
Recommended research model
Based on customer satisfaction research, the authors suggest developing a framework to analyze customer satisfaction specifically for ATM card services, utilizing the SERVPERF model to assess perceived performance.
(1992) adapted to the field of study for modeling as follows:
Customer satisfaction of using BIDV ATM cards RELIABILITY
RESEARCH METHODOLOGY
BIDV overview
Registered Business Name: Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV)
- Banking: is a leading experienced bank providing a full range of modern banking products and utilities
- Insurance: Provide life and non-life insurance products designed in accordance with BIDV's package products to customers
- Security: Provides a wide range of brokerage, investment and investment consulting services and the ability to rapidly develop a nationwide system of ordering agents
Finance investment involves allocating capital to establish businesses and fund key national projects Prominent examples include the Joint Stock Company Aviation Lease (VALC), the High-Speed Road Development Company (BEDC), and investments in Long Thanh International Airport These initiatives play a crucial role in enhancing the country's infrastructure and economic growth.
- More than 24,000 staff members are well-trained, experienced financial advisors accumulated and transferred over half a century BIDV always gives customers benefits and confidence
- Banking network: BIDV has 189 branches and 906 network points, 2,522 ATMs, 23,962 POSs in 63 provinces / cities nationwide
- Non-banking network: Including Investment Securities Company (BSC), Financial Leasing Company, Non-Life Insurance Company (BIC)
- Foreign represents: Laos, Cambodia, Myanmar, Russia, Taiwan
BIDV has established a diverse portfolio of subsidiary companies, including BIDV Sumitrust Leasing Company Ltd (BSL), BIDV Asset Management Company Ltd (BAMC), BIDV Securities Joint Stock Company (BSC), and BIDV Insurance Corporation (BIC) Additionally, it operates the Lao-Viet Insurance Joint-Venture Company (LVI), MHB Securities Company (MHBS), and International Investment and Development Company Ltd (IIDC) The group also extends its reach through the Bank for Investment and Development of Cambodia Plc (BIDC), Lao-Viet Joint Venture Bank (LVB), Cambodia-Vietnam Insurance Company (CVS), and Cambodia-Vietnam Securities Company (CVI).
- Always innovate and apply technology effectively for the advanced management and development of banking services
- Since 2007, BIDV has been leading the Vietnam ICT Index, and is in the TOP 10 CIO (Information Technology Leader) of Vietnam Indochina Region in 2010 and Southeast Asia in 2012
- With customer: BIDV provides the highest quality banking products and services and is ultimately responsible for the products and services provided
- With strategic partners: Willing to "Share Opportunity, Collaborate Successfully"
At BIDV, we believe that our staff is the cornerstone of our success, embodying the principle that "Each BIDV staff is a competitive advantage." This commitment underscores the importance of both professional expertise and ethical standards, highlighting that our human resources are key to achieving excellence.
- The choice, trust of economic organizations, businesses and individuals in the access to financial services bank
- Recognized and recognized by domestic and international community as one of the largest banking brands in Vietnam
- It is the pride of the generation of staff and the banking and finance industry over the past 65 years with traditional careers serving the country's development investment
- BIDV is the Bank of the Top 30 largest bank in Southeast Asia, among the 1,000 best banks in the world by The Banker
- Corporates: Having the largest corporate customer base in the system of credit institutions in Vietnam, including large corporations and corporations; small and medium enterprises
- Finance Institutions: BIDV is a reliable choice of major institutions such as World Bank, ADB, JBIC, NIB
- Individuals: Millions of individual customers have been using BIDV's services
By the end of 2020, despite the challenges posed by the Covid-19 pandemic, BIDV maintained its status as the largest joint stock commercial bank in Vietnam, with total assets reaching VND 1,516,686 billion, a 1.8% increase from 2019 The bank's deposits from entities and individuals rose by 9.1% to VND 1,295,533 billion, demonstrating strong customer trust in BIDV's brand Customer deposits also grew by 10.1% to VND 1,226,674 billion, while total outstanding loans and investments reached VND 1,438,520 billion, marking an 8.5% increase The loan balance stood at VND 1,230,569 billion, compliant with the State Bank of Vietnam's credit limit, and accounted for 13.4% of the total credits in the economy, solidifying BIDV's leadership in lending to economic organizations and individuals.
Corporate bond investments prioritized portfolios with strong profitability and safety, achieving a non-performing loan (NPL) rate of 1.54% The consolidated profit before tax reached VND 9,026 billion, exceeding the State Bank's financial plan by 106% However, this represented a 15.9% decline from 2019, as BIDV proactively reduced income by over VND 6,400 billion to restructure debts and provide relief for customers impacted by Covid-19, following State Bank directives Profit after tax was VND 7,224 billion, down 15.5% compared to 2019, with return on assets (ROA) and return on equity (ROE) ratios at 0.48% and 9.18%, respectively, while maintaining a capital adequacy ratio (CAR) to ensure regulatory compliance.
BIDV is rapidly expanding its network, now comprising 189 domestic branches, one foreign branch in Myanmar, and 906 transaction offices to enhance customer service This growth supports a robust retail banking sector, positioning BIDV as a market leader in scale.
In 2020, retail outstanding loans became the largest segment among customer categories, with a notable increase of 13.7% from the previous year, representing 35.7% of total outstanding loans by December 31, 2020 This growth marked a 1.6% rise since the start of the year Additionally, the number of individual customers surged to over 11.6 million, reflecting a 14% increase compared to 2019 and accounting for 11.9% of the nation's population.
In recent years, the joint venture operations, capital contributions, and subsidiary companies have undergone significant transformations, with profits exceeding expectations and effectively preserving and developing capital In 2016, BIDV successfully divested strategic shares of BIDV Finance Leasing Company to Sumitomo Mitsui Trust Bank and restructured BVIM Fund Management Joint Venture Company BSC Securities achieved commendable results despite volatile market conditions, while BIC Insurance Corporation solidified its position as one of Vietnam's top five most trusted insurance companies Additionally, BIDV successfully implemented the BIDV-Metlife Bancassurance channel, establishing itself as the most comprehensive insurance business bank in Vietnam.
In 2020, BIDV was approved by the State Bank of Vietnam to establish 35 new transaction offices - the basis to put transaction offices into operation and expand the
In 2021, BIDV launched two smart transaction offices in Hanoi to enhance e-banking services and submitted a plan to the State Bank of Vietnam to convert the Southern Cash and Vaults Center into a non-business unit for improved efficiency The bank upgraded its centralized ATM fund management program and completed the procurement of a multi-function ATM system, deploying a pilot of 10 multi-purpose ATMs capable of handling various banking transactions BIDV also made significant strides in external business activities, fostering economic and diplomatic relations, notably being the only Vietnamese bank authorized to open a branch in Myanmar, while strengthening its commercial presence in Laos, Cambodia, the Czech Republic, Russia, and Taiwan.
In 2020, BIDV achieved remarkable recognition, receiving multiple prestigious domestic and international awards, including being named a national brand – Vietnam Value for the sixth time and ranking among the "Top 10 largest enterprises in Vietnam" for four consecutive years The bank was also honored as the "Best SME Bank" and for the "Best Innovative Corporate Customer Service Product Solution in Vietnam" by The Asian Banking & Finance Singapore, alongside accolades for being the "Best Transaction Bank" and "Best Cash Management Bank in Vietnam" from The Asian Banker Additionally, BIDV was recognized as the "Outstanding Retail Bank" and "Outstanding Digital Transformation Bank 2020" by VNBA & IDG, received the Sao Khue Awards 2020 for six exceptional IT application products, and was awarded "Best Credit Card in Vietnam" for four consecutive years by IFM Magazine, as well as being acknowledged as an "Enterprise for Employees' Benefits" for the period of 2018-2020.
By 2021, the global economy is projected to rebound from the significant downturn experienced in 2020 due to the Covid-19 pandemic, with widespread vaccine distribution anticipated in developed nations during the first half of the year and in other countries later on Vietnam demonstrated notable resilience and proactive measures throughout 2020, setting the stage for a stronger recovery.
In 2021, Vietnam's economy is poised for a robust recovery, targeting a GDP growth of 6.5% while keeping the CPI below 4% Key objectives include a 4%-5% increase in total export turnover, an 8% growth in industrial production, and a minimum 8% rise in retail sales and consumer services, with social development investment accounting for 34.5% of GDP Under the motto "Discipline – Quality - Digital Transformation," BIDV aims to align with the government's economic recovery goals, projecting a credit growth of 10%-12% and a capital mobilization increase of 12%-15%, while maintaining a non-performing loan (NPL) ratio below 1.6% The bank anticipates a consolidated profit before tax of approximately VND 13 trillion, subject to market conditions and regulatory approvals.
3.1.3 Card business at BIDV in recent years
The ATM is often perceived as a static component of banking services, seemingly unchanged since its introduction in the 1960s and operating independently from mobile and online banking However, this perception is misleading, as advancements in ATM technology are now central to broader innovations within the financial industry In the coming years, developments in the ATM channel will not only influence but also be shaped by technological shifts across the banking sector.
The transformation of ATMs from mere cash dispensers to multifunctional financial hubs marks a significant evolution in banking Today, consumers can utilize ATMs to pay bills, purchase event tickets, and deposit checks, enhancing convenience and accessibility in financial transactions.
30 increasing signs that functionality is evolving further with transactions such as foreign currency and travel ticket dispense also
Cash use is still holding firm in the face of new payment methods Over
Every second, $400,000 USD is withdrawn from ATMs, underscoring the vital role of cash and ATMs in the future of banking As banks reduce the number of physical branches, ATMs become essential for consumers to access cash Furthermore, advancements such as video teller technology enhance ATMs' functionality, enabling banks to provide customer service and engagement efficiently and cost-effectively around the clock.
Research process
Suggested research process model as below:
Research design
Preliminary research employs both qualitative and quantitative methods to assess service quality and customer satisfaction regarding BIDV's ATM card services The qualitative phase involves thematic group discussions with BIDV Card center leaders, staff, and approximately 30 experienced ATM card clients to identify key factors affecting service quality This process helps refine the research model and develop a targeted questionnaire, ultimately leading to the creation of an official interview questionnaire for the formal study.
General reserch (Qualitative and Quantitive) Measurement Scale
After conducting qualitative research, 6 dimensions of the customer satisfaction model were agreed and could be used for further research, quantitative research
Customers prioritize reliability in service, seeking assurance of accurate, timely, and dependable performance This necessitates consistent service delivery and a commitment to honoring promises, which ultimately fosters trust and satisfaction among clients.
Responsiveness refers to the ability of a service provider to swiftly address issues, manage complaints effectively, and be readily available to assist clients, ensuring that customer needs are met Essentially, it reflects how well the service provider responds to customer demands and expectations.
- Tangibles: Customers are often interested in service visibility with the following criteria: presence, application, usage
Assurance is a crucial element that fosters credibility and trust among customers, achieved through professional service, expert knowledge, courteous interaction, and effective communication skills This instills a sense of peace of mind for clients when utilizing banking services.
Empathy is crucial in fostering strong customer relationships, as it reflects genuine care and attention The human element is fundamental to a bank's success, and by prioritizing customer interests, banks can enhance their rapport and build greater sympathy with their clients.
- Price: It is the cost that customers have to spend to use the service
A formal quantitative research study was conducted following the revision of a questionnaire based on preliminary findings This research directly surveys BIDV customers who utilize ATM card services in Hanoi to gather data The primary objective is to test the scales within the research model, providing a detailed analysis of the collected data to assess the logical relationships and correlations among various factors, ultimately yielding specific insights related to the research topic.
The appropriate sample size for exploratory factor analysis (EFA) is crucial for accurate results Gorsuch (1983) recommends a minimum of 200 observations, while Hatcher and Stepanski (1994) suggest that the sample size should be at least five times the number of observed variables, as emphasized by Hair et al (1998).
To determine the appropriate sample size for factor analysis, it is generally recommended to have at least four to five times the number of variables involved This guideline, referenced from Hoang Trong and Chu Nguyen Mong Ngoc's "Analysis of SPSS" (2005), underscores the importance of a sufficient sample size to ensure reliable and valid results in statistical analysis.
In addition, according to Tabachnick and Fidell (1991) for best regression analysis, the sample size should satisfy the formula: n >= 8k + 50 = 8*34+50 = 322
In which: “n” is the sample size
In addition, according to Nguyen Dinh Tho's empirical rules (2011), the number of observations is greater (at least) 5 times the number of variables, preferably
10 times Thus, with 34 observational variables, the study should investigate at least
340 samples to reach the sample size required for EFA analysis The method of
37 collecting questionnaire data, distributing questionnaires directly to customers and collecting right after answering
Sampling: convenient sampling method, number of questionnaires emitted is
The survey utilized a 5-point Likert scale for each question, and following data collection, the researcher inputted the data into software for analysis The results were examined using SPSS to draw conclusions regarding the hypotheses and research models, which will be detailed and presented in a comprehensive research report.
Mean (average): Equal to the sum of all observed variables divided by the number of observations
Median, (Me): Is the value of the vertical variable in the middle of a sequence that has been ordered in ascending or descending order
Mode (Mo): Is the value with the highest occurrence frequency in total or in a series of distribution numbers
Variance (δ 2 ): Is the mean between the squared deviations between variables and the mean values of those variables
Standard Deviation: Is the square root of the variance
Cronbach’s Alpha: Verification allows evaluating the reliability of setting up a composite variable on a single variable basis
The formula for Cronbach's alpha is: α = Np/[1 + p(N – 1)]
Where p is the average correlation coefficient among items The Greek letter p in the formula represents the mean correlation among all pairs of items tested
According to established standards, a measurement questionnaire is considered effective when it has a coefficient α of 0.8 or higher However, an increase in the number of items (N) in the questionnaire can lead to artificially inflated α coefficients, potentially skewing the assessment of its quality.
Many researchers agree that Cronbach's Alpha from 0.8 upwards is close to a good measurement scale, from 0.7 to near 0.8 is usable There is also a researcher
Cronbach's Alpha values of 0.6 or higher are considered acceptable, particularly when the concept being examined is either novel or unfamiliar to the respondents within the research context (Hoang Trong & Chu Nguyen Mong Ngoc, 2005).
To ensure the reliability of a scale measuring a latent variable, the internal consistency is assessed using Cronbach's alpha coefficient According to Nguyen Dinh Tho (2011), a reliable scale typically has a Cronbach's alpha between 0.7 and 0.8, while a coefficient of 0.6 is considered acceptable However, values should not exceed 0.95 to avoid measurement overlap Additionally, variables with a correlation coefficient below 0.3 will be excluded as corrective modifiers (Nguyen Dinh Tho, 2011).
Therefore, for this study, Cronbach's Alpha 0.6 or more is acceptable Cronbach's alpha calculator helps the analyzer to eliminate unsuitable variables and limit waste variables during the study
To assess the convergence of conceptual component variables, any variable with a single correlation coefficient below 0.5 will be excluded The analysis employs Principal Axis Factoring for factor extraction, alongside Promax2 non-square rotations A key threshold for determining relevant elements is when the "Initial Eigenvalues" exceed 1.
Exploratory Factor Analysis (EFA) is an essential method for data reduction and summarization, facilitating the identification of relevant research variables and uncovering relationships among them.
The Kaiser-Meyer-Olkin (KMO) coefficient is a crucial measure that indicates the degree of intrinsic correlation among observed variables in research concepts, reflecting the sample's suitability and the significance level of the Bartlett test A KMO value within the range of [0.5; 1] is considered acceptable.
Extraction of representative factors by observable variables is done by the principal factor analysis with rotation (Promax) Components with an Eigenvalue
39 value greater than 1 (Anderson & Gerbing, 1988) and total covariance of equal or greater than 50% are considered variables
Survey design
The survey was meticulously crafted after initial research and development, encompassing 34 observation variables across key sections: an introduction, content, personal information, and recommendations aimed at enhancing customer satisfaction.