Rationaleofthestudy
Inamoreglobalizedandintegratedeconomywithincreasingderegulation,c o m p e t i t i o n inthebankingindustryhasbecomesignificantlyfiercer.BankingindustryinV i e t n a m hasalsogrownrapidlyespeciallyinthegrowthofforeignbanks.This makesc ustomersh a v e m a n y c h o i c e s a n d c o m p a r e t h e s e r v i c e q u a l i t y a m o n g b a n k s thatt heyp e r c e i v e S a t i s f y i n g customersi s o n e o f t h e maino b j e c t i v e s o f e v e r y b u s i n e s s B u s i n e s s e s r ec o g n i z e t h a t k e e p i n g c u r r e n t cu s t o m e r s i s morep r o f i t a b l e t h a n h a v i n g t o winnewonestoreplacethoselost.Therefore,customersatisfactionan dservicequalitya r e c o m p e l l i n g t o t h e a t t e n t i o n o f a l l b a n k i n g i n s t i t u t i o n s
Besides,s i n c e V i e t n a m j o i n t s i n WTO,b i l a t e r a l a g r e e m e n t s , m u l t i l a t e r a l conventions,tradebarriershavebeenloosen.Thisencouragesthei nternationaltradetogrowrapidly.Vietnamesebusinesseshaveopportunitiestotradewi thforeignpartnersisveryhigh.Therefore,banksinVietnamhasfocusedtheirinterestintradefinanc eservicest o servebetterthedemandofcustomers.Thisisthepotentialfieldbusine ssthatbanksshouldcontinuetoexplore.
Amongmanyk i n d s ofb a n k i n g s e r v i c e s , tradef i n a n c e s e r v i c e s b r i n g a l a r g e sou rce offeesforbanks.ItisbetterwhenVietnamesebankswantstoi ncreasethefeesf r o m s e r v i c e s a n d d e c r e a s e t h e f e e s a n d c o m m i s s i o n s f r o m c r e d i t T h i s i s c o m p l e t e l y suitabletointernationaltrends.Beside,developingtradefinance servicesalsoincreasetheVietnamesebankspositionininternationalmarket.
However,customersperceptionofservicequalityisacomplexprocess.Therefore,multiple dimensionsofservicequalityhavebeensuggested.Itisagreementthatthereisn o s t a n d a r d model to adapt to bankingservicequalitymeasurementina specific country.B e c a u s e oftheroleofservicequality andoptimismoftradefinancedevel opment,thisresearchaimstoidentifydimensionsofBIDV’stradefinanceservicesquality inHoChiMinhCityarea.
Problemstatement
Serviceq u a l i t y i s ane l u s i v e c o n c e p t I t a t t r a c t e d t h e i n t e r e s t o f academi csa n d p r a c t i t i o n e r s aswell.Servicequalityisadynamic,multidimensionalconcep t.Forinstance,‘…qualityiswhatthecustomersaysitis’(Webster&Hung1994)or‘… ameasureo f h o w w e l l t h e s e r v i c e l e v e l d e l i v e r e d matchest h e c u s t o m e r ’ s e x p e c t
Page2 a t i o n s ’ ( L e w i s a n d Booms,1 9 8 3 ) T h e r e a f t e r , s o m e r e s e a r c h e r s s u g g e s t t h a t s e r v i c e q u a l i t y stemsfroma c o m p a r i s o n o f customers’p e r f o r m a n c e p e r c e p t i o n s w i t h e x p e c t a t i o n s ( P a r a s u r a m a n , 1988)orfromperceptionsofperformanceonly(Cronin&Taylor1992).
Intoday’scompetitivebankingenvironment,deliveringserviceswithhighqualityt o c ustomersisa mustf o r s u c c e s s a n d s u r v i v a l Witht h e s i g n i f i c a n t f i n d i n g s i n t h e f i n a n c i a l serviceindustry,itisimportanttounderstandhowBIDV’stradefinanceservice quality is perceivedbycustomers,andwhataretheelementsconsideredtomakesensetothem.T h e r e f o r e, t h e t h e s i s trytoi d e n t i f y t h e d i m e n s i o n s t h a t a f f e c t t o B I D V ’ s t r a d e finances ervicesqualityinHoChiMinhCityarea.
Researchobjectives
Objectivesa r e u n d e r s t o o d t o e x p r e s s t h e p u r p o s e o f t h e r e s e a r c h inm e a s u r a b l e terms.Itdefinesstandardsofwhattheresearchshouldaccomplish.Theresearchappli edtheSERVQUALmodelproposedbyP a r a s u r a m a n ( 1 9 8 8 ) a n d t e s t s t h e modelin as p e c i f i c service(tradefinance)atthebranchesofaspecificbank(BIDV).
Scope
Researchmethods
Inthefirstphase,agroupofcustomersisselectedtoanswerthequestionnairetomak esurethatthequestionnaireiscomprehensiveandsuitable.Someamendmentshaveb e e n m adewhereneeded.
Int h e s e c o n d p h a s e , a q u a n t i t a t i v e a p p r o a c h w a s u s e d D a t a werec o l l e c t e d byinterviewingbank’scustomers.Thepurposeofthisphasewastoanswerthreeresearc hquestions.
MultipleLinearRegressionanalysiswasemployedtotesttheresearchmodelandh y p o t h e s e s ChapterIVwilldiscussthemethodologyforthisstudyinmoredetail.Inthisc h a p t e r , th eauthoruseddataanalysistoolstoimplementtheresearch suchas:descriptivestatistics,multipleregressionmodelswithEviews7forWindows
Structureofthestudy
Thischapter p r es e n t st h e rationaleo ft h e study,aswellas, r es e a r c h problems,research o b j e c t i v e s , researchmethodologyandscope.
Someh i g h l i g h t s i n V i e t n a m exp or t – i m p o r t r e c e n t l y express t h a t t r a d e f i n a n c e serviceisthepotential f i e l d forBIDV tofocus more.This chapter a l s o providestrade f i n a n c e operationinBIDVwithitsstr engthsandweaknessesaswellastheopportunitiesa n d threats.
Chapter5presentsmainconclusionsand recommendationsbased ontheresultsofthepreviouschapters.Besides,itgivesthelimitationsofthisstudy.
Thischaptersearchesandreviewstherelevanttheoriesintheliterature.Theaimofthisr e v ie w istounderstandthec o n c e p t u a l servicequalityandtoseekaresearchmodelof servicequalityt h a t canbeappliedintheVietnamesebanksingeneralandinBIDVinp a r t i c u l a r toanswertheresearchquestions.
Understandservicequality
Definitionofservicequality
Therearemanyopinionsofquality.Itisawideanddifficultcategory.Dependingo n differe ntpositions,differentopinionsmayberaised.
Servicequality:asthedifferencebetweencustomers’expecta tionsforserviceperformancepriortotheservicee n c o u n t e r andtheirperceptionoftheservicereceived.
Servicequality:asthecomparisonthatcustomers makeb e t w e e n thequalityoftheservicethattheywanttor e ce i v e a ndwhattheyactuallyget.
Servicequality:asthedifferencebetweencustomer’sexpecta tionsofservicesprovider’sperformanceandtheirevaluationof theservicestheyreceives.
Ingeneral,servicequalityisdefinedashowwelltheservicemeetsorexceedsthecustom ers’e x p e c t a t i o n s o n a c o n s i s t e n t b a s i s H o w e v e r , t h e d i f f i c u l t y i s t h a t s e r v i c e quality,unlike productquality.Itismoreabstractand elusive,becauseof uniquefeaturest o services:intangibility,inseparability,heterogeneityandperishability.Therefore,servicequalityisdifficulttomeasure.
Theroleofbankingservicequality
Thebankingindustryishighlycompetitive.Banksnotonlycompeteamongeacho t h e r , b u t a l s o w i t h n o n - b a n k s a n d o t h e r f i n a n c i a l i n s t i t u t i o n s M o s t o f p r o d u c t s t h a t b a n k s prov idearenearlysimilar.Therefore,theycanonlydistinguishthemselvesbasedo n price(ch argesandinterestrate)andquality- theimportantfactorthatcustomerscanperceived.Whencustomerssatisfywiththeban kservicequality,theystaytolongtermtransactionwithabank.Theybecomeloyalandusemore andmoreservices.So,service qualityisconsideredas anessentialdeterminantthat allowso n e organizationto d iff er enti ate f r o m t h e o t h e r s I t h e l p s a n o r g a n i z a t i o n t o g a i n s u s t a i n a b l e c o m p e t i t i v e advant age.
CroninandTaylor(1994)alsofoundthatservicequalityhasasignificanteffectonr e p u r c h a s e i n t e n t i o n M o r e o v e r , m a n y s t u d i e s p r o v e d t h a t t h e c o s t s o f a c q u i r i n g n e w customerstoreplacethosewhohavebeenlostarehigh.RustandZahorikdeclar edthatt h e cos to fa t t r a c t i n g new customersm a y bef iv e timesof keepingexi st in gcu st o me rs.
( C i t e d inMostafaGhazizadeh,AliSoleimaniBesheli,VajihehTalebi,2010,Assessingofb a n k Customersretentionandloyalty,p.275).
Onewayfordifferentiationisthroughthedevelopmentofbrand.Satisfiedcust omersm a y cre ate p o s i t i v e b a n k imagebyw o r d o f mouthp r o m o t i o n I n G r o n r o o s model( 1 9 8 4 ) , t h e a u t h o r p o i n t e d o u t t h e c a u s a l i t y b e t w e e n t h e t e c h n i c a l q u a l i t y a n d image,alsofunctionalqualityandimage.
Therelationship betweenservicequalitya n d p r o f i t a b i l i t y h a s a t t r a c t e d manyr e s e a r c h e r s , managers.AccordingtoReichhelda n d S a s s e r
( 1 9 9 0 ) , p r o f i t s i n c r e a s e d between25to125percentwhen acompanyretainedjust 5 percentormorecustomers( An thon y PerroneandAntonyWard,1998,p.3).
Serviceq u a l i t y actually af fec ts o n b usi ness p r o f i t a b i l i t y Somes t u d i e s ha s b e e n d o n e t o t e s t t h i s r e l a t i o n s h i p T h e e m p i r i c a l s t u d y w a s i n U K N e w m a n a n d C o w l i n g ( 1 9 9 6 ) usedSERVQUALmodelandreportedthatprofitincreasessub stantialifserviceq u a l i t y isimproved.Itisestimatedthatanincreaseof5percentincustom erretentionisp o t e n t i a l l y worth£100millionperyear.
A 1988 study of a specific US bank examined the quantitative benefits of improving service quality on performance Initially, the bank incurred costs due to failures and corrections However, after enhancing service quality and reducing errors, the bank experienced a systematic decrease in service costs, leading to increased profit margins and earnings Consequently, the return on assets (ROA) rose from 1.05% before the improvements to 1.38% afterward, while the return on equity (ROE) also saw a significant increase.
16.10percentto21.22percentr espe ct ive ly asshowninthefollowingtable(Harv ey,1 9 9 6 )
U S A , p.1 1 c i t e d i n Chai so m ph ol Chaoprasert,2002,p.83)
(1997)arguedthata“directandstrong”relationshipexistsamongservicequality,customersati sfactionandprofitability.
Empiricalevidence
Models
Becauseoft h e roleofservicequalityandchangesinthebusinessenvironment,se rvicequalityactuallybecomesaninterestingissuethattakesattentiontopractitioners,r e s e a r c h e r s , managers.Therehasbeencontinuedresearchesonthedefinition,modelstomeas uretheservicequality.Duringtheperiod(1984–
2003),nineteenconceptualserviceq u a l i t y modelswerereported[NitinSethandS.G.Des hmukh,PremVrat,2005,p.914].T h i s paperattemptstoreviewsomeselectedmodelsth atcanbeappliedinthispracticalthesis.
Model no.1 Technical and functionalquality model (Gronroos,1984)
Gronroosp i o n e e r e d t o p r o p o s e a n d d e f i n e t h e dimensionso f s e r v i c e q u a l i t y ing l o b a l termsascomprisingtechnicalandfunctionalparts.Accordingtheaut hor,threec o m p o n e n t s o f s e r v i c e q u a l i t y a r e : t e c h n i c a l quality,f u n c t i o n a l q u a l i t y a n d image.A serviceorganization’s imagefunctioned a s a filteri nthe per c ep ti on of ser vi ce quality.Finally,t h e modelshowedthats e r v i c e q u a l i t y l e a d s t o c u s t o m e r s a t i s f a c t i o n
Perceived service quality Expected service
Traditional marketing activities (advertising, field selling, PR, Pricing) and external influence by traditions, ideology and word of mouth
Functionalq u a l i t y i s ast h e mannerinw h i c h t h e c u s t o m e r r e c e i v e s t h e s e r v i c e p r o d u c t (sometimescalledthe‘process-relateddimension’)
Imageisveryimportanttoservicebusiness.Imageisanassetforanyfirmbecauseimagehasa nimpactoncustomerperceptionofthecommunicationandoperationsofthefirmi n manyr e s p e c t s Imagec a n b e e x p e c t e d t o b u i l d upm a i n l y byt e c h n i c a l a n d f u n c t i o n a l q u a l i t y o f s e r v i c e i n c l u d i n g t h e o t h e r f a c t o r s ( t r a d i t i o n , ideology, w o r d o f mouth,pricingandpublicrelations).
Throughthe model,tomanageperceivedservicequality,thefirmhastomatchthee x p e c t e d serviceandpercei vedservicetoeachothersothatcustomersaresatisfied.
Model no.2: GAP model (Parasuraman,1985)
Originally,Parasuramanetal(1985)introducedtendimensionsofservicequalityinc ludingreliability,responsiveness,tangibility,assurance,communication,competence,credib ility,courtesyandsecurity, empathy.Later(1988),thesedimensionscollapsedintof i v e named:reliability,responsivene ss,tangibility,assuranceandempathy.ThemodelofP a r a s u r a m a n wasalsocalledSERVQUA L.
Itallowsmulti- unitretailcompaniestoassessthelevelofservicequalityofferedbyi n d i v i d u a l s t o r e s a n d t o g r o u p t h e m i n t o d i f f e r e n t s e c t o r s w i t h d i f f e r e n t q u a l i t y images. TheS E R V Q U A L t e c h n i q u e h a s a t t r a c t e d a l o t ofa t t e n t i o n f o r i t s conceptualizat ion ofqualitymeasurement.However,ith a s alsoattractedcriticism.
Oneofthoseisthattheinstrumentmainlyfocusesontheservicedeliveryprocess.T h e r e f o r e , BahiaandNanteldevelopedaspecificnewscaleforperceivedservicequalityi n retailba nking.Thebankservicequality(BSQ)modelisanextensionoftheoriginaltendime nsionsofthemodelofParasuraman.TheyaddedsomeitemssuchasCourtesya n d access anditemsrepresentingthemarketingmixofthe7Ps(Product/ service,Place,Process,Participants,Physicalsurroundings,PriceandPromotion)
(citedinH.Emari,S.I r a n z a d eh andS.Bakhshayesh,2011,p.58).
Ladhari( 2 0 0 8 ) s u m m a r i s e d a l i s t o f t h e o r e t i c a l a n d empiricalc r i t i c i s m s o f t h e model.First,hearguedthattheuseofgapscoresisnottherightmethodbecauseoft hel a c k o f t h e s u p p o r t i n l i t e r a t u r e t o c o n s u m e r s e v a l u a t i n g s e r v i c e q u a l i t y i n t e r m s o f perception-minus- expectation.H e r e c o m m e n d e d t h a t s e r v i c e q u a l i t y i s m o r e p r e c i s e l y an d co rrectlyevaluatedbymeasuringonlyperceptionsofqualityInaddition,hepointedo u t t h a t t h e p r e v i o u s r e s e a r c h s u g g e s t e d u s i n g p e r c e p t i o n - o n l y s c o r e s r a t h e r t h a n g a p s c o r e s f o r t h e o v e r a l l a s s e s s m e n t o f s e r v i c e q u a l i t y ( c i t e d i n T a m e e m A l B a s s a m , SarmadAlShawi2009,p.7)
Model no.3: Attribute service quality model (Haywood-Farmer,1988)
Thismodelstatedthataserviceorganizationgothighqualityifitmetc u s t o m e r pr ef er en ces andexpectationsconsistently.Theseparationofattributesintovariousgr oupsstepbystepimprovesservicequality.Generally,serviceshavethreebasicattributes:ph ysicalfacilitiesandprocesses,people’sbehaviorandprofessionaljudgment.E a c h attributec onsistsofseveralfactors.Toomuchconcentrationonanyoneoftheseelementstothe exclusionofothersmayleadtoadisaster.
Professional Judgment Diagnosis, competence, advice, guidance, innovation, Honesty, confidentiality, flexibility, discretion, knowledge
Location, layout, décor, size facility reliability, process flow, capacity balance, control of flow process flexibility, timeliness, speed ranges of services offered communication
Behavioral aspects: Timeliness, speed communication (verbal, non
– verbal), courtesy, warmth, friendliness, tact, attitude, tone of voice, dress, neatness, politeness, attentiveness, anticipation, handling complaints,
Short contact/interaction intensity – low customization, for e.g hardware/grocery shop
Medium contact/ interaction intensity – low customization.
High contact/ interaction intensity – low customization, for e.g education
Low contact/ interaction intensity – high customization, for e.g Clubs
High contact/interaction intensity – high customization, for e.g Health care services
Model no.4: Performance only model (Cronin and Taylor, 1992)
Expectation”d e t e r m i n e s s e r v i c e q u a l i t y asSERVQUALmodel.H o w e ve r , C r o n i n a n d Taylor(1 99 2) didn o t c o n c l u d e th at itwa s
Repurchase intention Word of mouth
Customer satisfaction Perceptions unnecessarytom e as u r e customerexpectations i n service q ua l i t y T he researchdi dnota c t u a l l y suggestthatservicequalityfailstoaffectpurchaseintentions.
Model no.5 Service quality, customer value andcustomer satisfaction model (Oh,
Themodelmainlyfocused onpostpurchasedecisionprocess.Theauthorspointed outincorporateskeyvariablessuchasperceptions,servicequality,consumersatisfaction,customer v a l u e a n d i n t e n t i o n s t o r e p u r c h a s e A n d t h e f i n a l resulti s w o r d o f mouth R e s u l t s alsoindicatethatperceivedpricehasanegativeinfluenceonperceivedcustomerva lue andnorelationshipwithperceivedservicequality.
Model no.6 Internetbanking model (Broderick and Vachirapornpuk, 2002)
Withthedevelopmentoftechnology,internetservesasamoderndeliverychannel.T h e res earchusedparticipantobservationandnarrativeanalysisofUKinternetwebsiteco m mu n it y toe x p l o r e h o w i n t e r n e t b a n k i n g customersp e r c e i v e andelementso f t h i s mod el.F i v e keyelements a r e t r e a t e d a s c e n t r a l i n f l u e n c e o n p e r c e i v e d s e r v i c e q u a l i t y including:customerexpectationsoftheservice;theimageandreputationoftheserviceo r g a n i z a t i o n ; aspects oft he servicesetting; t he actualserviceencounter;andcusto merparticipation.
Summaryandcomparativeevaluationofservicequalitymodels
Technical pointLikert and +Method of notofferan -11 functional analysis:Basic explanationon qualitymodel statistical how tomeasure analysis functional and
+Measurement technicalquality affectingservicequality. through: 2 Suitabilityforvariety
+Scale:Sevenpo in t Likert +Method ofanalysis:princi palaxisfactor.
Themodeldoesn ot explain theclearmeasur ementprocedure forthemeasuremen tofgapsatdifferentl evels.
7 Flexible enoughformodificationa sperthechangesin theenvironment/conditio ns.
+Measurementt hrough:Physical facilitiesandproc esses,people’sbe haviorandconviv iality,profession aljudgment
Itdoes not offerthemeasure mento f servicequ alityItdoes not offerapracticalpr ocedurecapableof helpingmanagem enttoidentify se rviceq ua li ty pro blemso r practical meansofimprovi ngservicequality
Modelno.4: +Scale:Seven Needto be
Performance pointsemantic generalizedfor only differential alltypesof 5–6–7 - model +Method of service settings 8 -11 analysis: Quantitative principalaxis relationship factor between
+Measurement consumer through:sameas satisfactionand SERVQUALbut servicequality with needto be performance established onlystatements
ServiceQuali ty,Customerv a lu e andCus tomerSatisfa ctionmodel point +Method ofanalysis:Patha nalysisusingLIS REL
+Measurementt hrough:Through singleitemforper ceivedpriceand eightitems forperceptions begeneralizedf o r differenttypeso f servicesettings Modelvariablesa remeasuredthrou ghrelatively fe weritems
+Method ofanalysis:Qualit ativeapproach +Measurementt hrough:Through servicesetting, servicesencount er,customerexpe ctationandimage
Not muchempirical workcarriedout Themodel isbasedon theexperienceo fo ne websiteo nly, needsto bevalidatedwith otherexperienc es
Table2.3.Comparativeevaluationofservicequalitymodels(source:NitinSethandS.G.Deshmukh,Pre m Vrat,2005,p.943].
Applicationsmodelsinsomecountries
Performanceonlymodelsatisfymorecriteriathanothers.Inpractice,SERVQUALhas c o n s i d e r e d a s t h e mostpopularmeasuremento f servicequality,specialinbankingindustry.SERVQUA Lmodelhasbeenappliedinmanycountries.
In the study of retail banking in Qatar, the authors adapted the SERVQUAL model to create four dimensions: reliability, competence, tangibility, and empathy, along with 18 tailored questions The findings revealed that customers rated tangibility, including the bank's infrastructure and modern equipment, as the highest aspect of their experience This was closely followed by empathy, particularly regarding convenient transaction times Conversely, the lowest customer perceptions were related to competence, specifically regarding service charge methods, and reliability, particularly in customer guidance.
InM a l a y s i a , t h e a u t h o r s a l s o e m p l o y e d t h e S E R V Q U A L s c a l e t o m easuret h e customer’ss a t i s f actiona n d l o y a l t y R e g r e s s i o n a n a l y s i s s h o w s thatt a n g i b i l i t y h a d n o s i g n i f i c a n t impactoncustomerloyalty.Reliabilityisfoundtoha vepositiverelationshipw i t h customerloyaltybutnotsignificanttocustomersatisfaction. Findingsalsoindicatet h a t t h e r e l a t i o n s h i p b e t w e e n responsivenessa n d customerloyaltyw a s insignificantd e s p i t e r e s p o n s i v e n e s s f o u n d t o h a v e p o s i t i v e r e l a t i o n s h i p w i t h customers a t i s f a c t i o n Empathy,assurancehadsignificantpositiverelationshipwithcustomerlo yaltyandcustomersatisfaction.
InIndia,therewasaresearchstudyonservicequality gapinprivatesectorbanks.T h e s t u d y e v a l ua t e s t h e c u s t o m e r s’p e r c e p t i o n s b a s e d o n s e r v i c e q u a l i t y g a p a n a l y s i s D a t a wascollectedfrom200customersofPrivat eSectorBanksusingstructuredquestionnaire.Theresultshowedthatthedimensions ofservicequalitysuchasempathya n d a c c e s s i b i l i t y h a d moreg a p b e c a u s e t h e cust omers’e x p e c t a t i o n s w e r e h i g h e r t h a n t h e i r perceivedservice.Theresultalsoin dicatedthatempathy-reliability-assurancepositively influencestheservicequality.
InCanada,basedonBSQmodel,BahiaandNantel(2000)conductedaresearchtod e v e l o p avalidmeasurementofperceivedservicequality.Thequestionnairecomprises3 1 i temsclassifiedacrosssixdimensionsas:effectivenessandassurance,access,price, tangibles,rangeofservicesofferedandaccuracyandreliability.
In today's rapidly evolving technological landscape, business practices have significantly transformed, particularly with the rise of electronic banking driven by competitive pressures and customer demands Researchers have explored service quality in online banking, highlighting the evolution of traditional service quality perceptions A specific study conducted in Australia, involving a sample of 2,500 businesses, compared the expectations of five service quality dimensions to the original research by Berry and Parasuraman (1991) The findings indicated that reliability remains the most crucial aspect of service quality for customers, while responsiveness has dropped to third place, and assurance has risen to second in terms of importance.
Comparingtheperceivedperformancerankingwiththeexpectationsrankingofthisr e s e a r c h , how ever,showsmuchlargerdiscrepancies.Forthetoptwoexpectations, onlyassuranceisperceivedtobedoingwell,whileinthebottomtwoexpectations,T a n g i b l e s seemtob eoverrated.
Tos u m u p , t h i s c h a p t e r g i v e s t h e g e n e r a l k n o w l e d g e o f s e r v i c e qualit y.I t i n c l u d e s o p i n i o n s , selectedresearchmodelsandpracticalresearchesinsome countries.Itisveryu s ef u l f o r s h a p i n g i n mym i n d a modelo f Vietnameseb a n k i n g s e r v i c e q u a l i t y m e a s u r e m e n t : AcaseofBIDVtradefinanceservicesqualityinHoChiMinhC ityarea.
ThischapterprovidestheoverviewontradefinanceinVietnamfrom2010andspeciallyi n BIDV.TheanalysisofBIDV’sstrengths,weaknesses,opportunities,threatshelpsther e a d e r s understandtheBIDVtradefinanceserviceposition.Itisalsooneofreasonstomeasu rethetradefinanceservicequalityandfocusonenhancingtheservicequality.
TradefinanceinVietnam
Exports
Exportt u r n o v e r o f 2 0 1 0 i s estimatedr e a c h i n g U S D 7 1 6 b i l l i o n , i n c r e a s i n g by2 5 5 % against2009.ThedomesticeconomicsectorgainsUSD32.8billion,upby22.7%;th eF D I s e c t o r ( i n c l u d i n g c r u d o i l ) : U S D 3 8 8 b i l l i o n u p by2 7 8 % I f c r u d e o i l i s excluded,theFDIsector’sexportturnoverisUSD33.9billionupby40.1%again st2009.T h e r e isalsoachangeintheexportturnoverstructureforsomegroupsofc o m m o d i t i e s T e x t i l e garmenti s t h e l e a d i n g e x p o r t industry.F o l l o w i n g s a r e f o o t w e a r ,aquaticproductsandcrudeoil.
Chart3.1:MajorExportproductofVietnamin2010(source:www.vietpartners.com/Statistic- i m e x h t m )
The United States remains Vietnam's largest export market, with an estimated turnover of USD 12.8 billion, representing 17.9% of the total export turnover and a 25.4% increase compared to the same period in 2009 Key exports to the U.S include textiles (USD 5.5 billion), wood and wood products (USD 1.3 billion), shoes and sandals (USD 1.3 billion), and seafood The European Union follows as the second-largest market, with exports totaling USD 10 billion, accounting for 13.9% of Vietnam's exports and a 15.9% increase, featuring footwear exports at USD 2 billion, textiles at USD 1.64 billion, seafood at USD 1 billion, and wood products at USD 594 million Exports to ASEAN reached USD 9.3 billion, making up 13% of total exports, with notable items including rice at USD 1.5 billion, crude oil at USD 1.4 billion, and gasoline at USD 653 million.
JapanreachesUSD6.9billion,accountingfor9 6%andup by23.6%againstthe samep e r i o d lastyear;exported goodsto ChinagainsUSD6.3billion,accountingfor8.8%andupby4 8.6%.
6.4% andreachesUS$19.64 billion.Themainexports outpacingthe thresholdofUS$ 1 b i l l i o n a r e : t e x t i l e s a n d g a r m e n t s , c r u d e o i l , f o o t w e a r s , f i s h e r y p r o d u c t s a n d c o f f e e Thetotalvalueofthesemainexportswasapproximatel yUS$8billion,accountingfor40.6%ofVietnamtotalexportvalue.
Chart 3.2 Top tenmainexportsof Vietnamin first quarter 2011(source:www.customs.gov.vn)
E x p o r t a v e r a g e mon th ly turnoverofoverUS$7billion,whichwashigherthantheavera getargetofUS$
6.6billion.ExportstoanumberoflargemarketsincludingtheUS,EU,JapanandChinar o s e bet ween22-40percent.
Forthe wh ole 20 11, V i e t n a m isforecastedt oearn$74.8billion fromexport inggoods,up10%fromayearearlier.
However,itisexpectedtoincreaselightlyandbringsabout$5.2billionin2011,up5percen tyear-on-year.Vietnam'straditionalmarketswouldbestillmaintained.
Imports
Importturnoverof2010isestimatedtoreachUSD84billion,upby20.1%against20 0 9 Th edomesticeconomic sectorgainsUSD47 3billion,upby8.3%;andtheFDIsectorw ithUSD36.7billion,upby39.9%.
ChinaisstillthelargestmarketforVietnam’simportationwithtotalturnovero fU S D 17.9billion,upby23.4%againstthesameperiodin2009;ASEANwithUSD14.5b i ll io n , upby18%;RepublicofKoreawithUSD8.7billion,upby42.4%;JapanwithUSD8.1billion,upby21.7%;EUwithUSD5.5billion,upby9%.
Chart3.3:Vietnamimportyear2010(source:www.vietpartners.com/Statistic-imex.htm)
Themainimportp r o d u c t s i n t h e f i r s t q u a r t e r o f 2 0 1 1 a r e : p e t r o l e u m p r o d u c t s , i ro n, steel,machineandequipment,plastics,textile,leatherandfootwearmateri al,andcomputer,electricalproducts,sparepartsandcomponentsthereof.
Totali m p o r t r e v e n u e f o r t h e f i r s t s i x m o n t h s o f t h i s yeara r e u p 2 6 4 p e r c e n t comparedwiththesameperiodlastyear,at$49billion.
Thecountry's importisexpectedat$93billionin2011,up10.7percentagai nst2010's.
Animal fodders and animal foddersmaterials
Table 3.1:Top 10 importproductsinVietnamin 1 st haft 2011( source:www.customs.gov.vn)
Vietnamtradebalance
Inthefirsthalfofthisyear,tradegapisestimatedataround$7.5billiontoaccountfor18percent ofthetotalexportturnover.
Chart3 4 : Exports,importsa n d t r a d e b a l a n c e o f V i e t n a m F r o m Jun2 0 1 0 t o March2
0 1 1 (source:www.customs.gov.vn)
Vietnamisforecastedtoincur$14.6billionoftradedeficitin2011,accountingfor19 5 %of thetotalexports.
TradefinanceservicesinBIDV
Paymentsfor exports andimportsin2009were approximatelyUSD1,200milliona n d U S D 5 , 2 0 0 million,respectively.A c c o r d i n g l y , n e t f e e s f r o m t r a d e f i n a n c e g a i n e d o v e r VND230billion,growingby51%overthatin200 8.
As2010,exportandimportturnovergotoverUSD1,184millionandUSD4,391mil lionrespectively.Exportturnoverwasdown3%andimportturnoverwasdown14%,compared with2009’s.FeesfromtradefinancegainedoverVND226billion,decreasedby2%in2009.
Attheendof2010,export- importfinancingvolumegot26,900billionVNDand1 3 , 905b i l l i o n V N D , i n c r e a s e d 5 9 % a n d 5 2 % r e s p e c t i v e l y c o m p a r e d w i t h 2 0 0 9 ’ s Exportandimpor tfinancingoutstandingwas9,250billionVNDand6,400billionVNDrespectively.I n genera l, in2010, i mp or t ande x p o r t l o a n s i nc rease remarkably.E x p o r t a n d importfinancin goutstandinggrowthwas22%and98%respectively.
Determining thekeye x p o r t products,B I D V p r o v i d e s anexport packagetostimulateandsharebenefitswithexporters.BIDVidentifiesthat,inshortandlongt erm,t h e b a n k h a s s t i l l focusedo n s u p p o r t i n g t h e k e y i n d u s t r i e s t o e n h a n c e t r a d e f i n a n c e servicesfeeand tocontributeineconomydevelopment.BIDVhas financedcontinuouslysomeindustriesasfollows:
By the end of 2010, BIDV's textile and garment export loans surged by 60% compared to 2009, accounting for 17% of the total loan volume The textile and garment export turnover has consistently increased year-on-year by approximately 20% Vietnam ranks among the top five countries globally in this industry, with major trading partners including the US, EU, and Japan With favorable market conditions anticipated, the garment sector aims to achieve over $13 billion in export earnings in 2011 The ongoing development policies and relaxation of tariff barriers are expected to further enhance Vietnam's import and export prospects in the textile and garment industry.
Riceindustry:Totheendof2010,thenumberofcustomersetuptherelationshipt o BIDVi s45,increase5customersmorethanin2009’s.While,uptodateVietnamh a s moretha n300companiestojointinriceexportactivity.Clearly,thissegmentisstillpotentialfor BIDVtodeveloptradefinanceservices.
+Worldricedemand:Accordingtoprediction,thedemandofworldriceisstil lhi ghduetothedisadvantageousclimateinmanycountries.
+Thecapacity ofVietnam riceproduction:Theexportandstorequantityisabout 11.4milliontons,inwhichthebalancecanbeexportedis5.8–6.3milliontonsin2011.
Toke ep t h e str on gb ra nd p o s i t i o n , toin cre aset he t r a de f in anc eser vi ce qu a li ty, B I D V continuestokeepitspromiseastheslogan“shareopportunities,sharesuccesse s”.B I D V t a k e s o p p o r t u n i t i e s , d e v e l o p s itsstrengthsand graduallyo v e r c o m e s t h e w e a k n e s s e s aswellasthreats.
+ International FinanceCorporation (IFC)hasloaned arecord US$505millionforthe fiscalyear2011.Now,Vietnamesebankscanhelplocalcompanies increaseforeigntradethroughitsGlobalTradeFinanceProgram.
+T h e H S B C s u r v e y e d T r a d e C o n f i d e n c e I n d e x E n t e r p r i s e s werea s k e d a b o u t theirs i x - m o n t h o u t l o o k o n t r a d e v o l u m e ; buyera n d s u p p l i e r r i s k s ; t h e needf o r t r a d e f i n a n c e ; a c c e s s t o t r a d e f i n a n c e ; a n d t h e i m p a c t o f f o r e i g n e x c h a n g e a n d g o v e r n m e n t t r a d e regulationsontheirbusinesses.Theresultswereusedtocalculateanindexr angingf r o m
The confidence level of traders in Vietnam has shown a slight decline, with scores dropping from a peak of 132 in the first half of 2010 to 122 in the second half, and further to 116 in the first half of 2011 Despite this decrease in the trade confidence index, businesses remain optimistic about their trade outlook, anticipating growth in trade volume This cautious sentiment reflects concerns over fluctuating exchange rates, high interest rates, and buyer/supplier risks Notably, 70% of respondents in the first half of 2011 still expect an increase in trade volume, indicating a resilient outlook among Vietnamese traders.
+P l a c e ( n e t w o r k d i s t r i b u t i o n ) : By2 0 1 0 - e n d , BIDVh a s 1 2 0 b r a n c h e s a n d 4 8 3 transactionoffices.TheBank’snetworkhascover ed63provinces/ cities,spreadingfromc r o w d e d residentialandurbanareastocommercialandfinancialc entersnationwide.Totraditionaldistribution,BIDVranks3 rdposition inbankingsystem.
Besides,B I D V h a s e x p r e s s e d i t s i n t e r n a t i o n a l c o o p e r a t i o n e x p e r i e n c e s bydevelopi ng thecorrespondentbankingrelationshipwithover1,600financi alinstitutionsw o r l d w i d e BIDVimplementslarge projectswithinternationalfinancialinstitutionssuchas W B , A D B , J B I C , I M F , E C B T h e b a n k a l s o e x p a n d s i t s b u s i n e s s i n t o : C a m b o d i a , Myanmar,Lao,Russia…
+P e o p l e ( h u m a n r e s o u r c e ) : B I D V h a s p l a c e d a d e q u a t e e m p h a s i s o n t h e recruitmentandplacementofqualifiedandprofessionalstaffforallpositionst oensures u f f i c i e n t stafftomeetthedemandsofbusinessdevelopmentandnetworkexpan sion.Att h e endof2010,the totalnumberofemployeeswasmore16,000.Thequalityofstaffhasbeenimprovededucationa llyandprofessionally.Thegraduatedandpost- graduatedemployeesaccountedfor85.3%,increasedby2.69%comparedtothoseof2 009.Theirp r o f e s s i o n a l andmanagerialcompetencehavebeenimprovedtoenablet hemtomastermodernbankingtechnologyandadapttothecompetitiveworkingenvironment.
+Products:BIDVinitiallyfocusondiversificationoftradefinanceproductssucha s : discountwithoutrecourse, Tradecarddiscount, importL/
+P l a c e : D e s p i t e BIDVi s r a n k e d 3rdp o s i t i o n i n b a n k i n g s y s t e m , them o d e r n distributionssuchashomebanking,internetbankingarestilllimited.
+Policy:F o r e i g n ex c h a n ge r a t e i s l es s c o m p e t i t i v e T h e f i n a n c i n g p r o c e d u r e iscomplex.Thesepreventtradefinanceoperationdevelopmentandmakesomecust omersleaveBIDV.
+Foreignbanks:Increasedpresenceofforeignbankswiththepriorityofcapital,t echnology,humanresource,portfolioservices…
2.000b i l l i o n V N D t o finance export firmswith thepreferentialinterest.With thisprogram,exporterscanborrowfromthebanka t thedowninterestsin2%peryearfor
+L i e n V i e t B a n k : T h e b a n k j o i n t s i n G l o b a l t r a d e f i n a n c e P r o g r a m w i t h I F C T hank stothisprogram,LienVietBankhastheopportunitytocoop eratewithmorethan4 0 0 bigbanksintheareaandontheworld.
Importpictureisopenedlittlebylittlewiththeoptimismin2011.The char t 3 5 i n d i c a t e t h a t B I D V s h o u l d makee f f o r t s t o i n c r e a s e t r a d e f i n a n c e s e r v i c e s quality toenhanceitspositionwithothercompetitors.BIDVwillhaveopportu nitiestos e r v e exp or t – i m p o r t b e t t e r i f B I D V h a s a spec if ic st r a t e g y fori m p r o v e m e n t oft r a d e f i n a n c e servicesquality.Itisoneoftheefficientbusinessfieldsbecauseitbringsthebigf e e incomeand contributesin thebalanceofthedemandandsupplyof foreignexchange.I t isalsoquitesuitablewiththemodernbankingmodelsintheareaandontheworl d.Thep o i n t isthatitincreasestheincomefromchargesofservicesandgraduallydecreasesthe r a t i o ofcredit.
(Abbreviationnote:VCB:Vietcombank,ICB:Incombank,BIDV:Bankforinvestmentanddevelopme ntofVietnam,Techcom:Techcombank)
The previous chapters establish the theoretical framework for this research, highlighting the application of the SERVQUAL model in the banking industry despite its limitations This thesis initially employs the SERVQUAL model along with an available scale and questionnaire However, recognizing the model's flaws, modifications will be made to enhance its suitability Specifically, two additional variables—price and portfolio—will be incorporated to better reflect the practical case study of trade finance service quality at BIDV in Ho Chi Minh City The analysis will focus on regression based solely on customer perception scores.
Methodology
Datacollection
Datafor this studywascollectedusing a quantitativesurveytechnique This studyw a s conductedintwostages.Stageoneinvolvedapilotstudywhichwascondu ctedtorefinet h e t e s t i n s t r u m e n t P r e - t e s t i n g o f t h e q u e s t i o n n a i r e s h a l l bea d m i n i s t e r e d t o a samplesizeofabout 8respondentstoensurethattherearenobiasesinthequestionsorthequestionsareconstruc tedclearlyandunderstandablyfortherespondents.
Samplesize
ThepopulationforthisstudyislimitedtocorporatecustomersofBIDVwhouset h e tradefinanceservicesofBIDVinHoChiMinhCity.Duetothelimitationsoftimea n d bu dget,thisstudyusesconveniencesampling.Itissaidthatthereisnoconsensusinthepreviousr esearcheson howlargethesamplesize shouldbe torepresent apopulation.A formulastocalculatethesamplesizewasprovided.Howeveritisno teas ytoapply.Thesamples i z e f o r t h i s s t u d y w a s i n t e n d e d t o b e 1 5 0 r e s p o n d e n t s T h e r e s e a r c h e r g a t h e r e d 123questionnaires,yieldingaresponserateof82p ercent.Finally,100qu estio nn ai r es (81.3percent)werefullyandcorrectlycompleted.
Questionnairedesign
A questionnairewasusedtocollectthedata.Thequestionnaireisdesignedinpart1withtheprofil einformationofrespondents.Inpart2,questionnairebasedon22- itemsurveyinstrumentofSE RV QU AL modelformeasuringservicequality Butitis s h o r t descriptiona n d alsotranslatedintoVietnamese.T w o m e a n i n g f u l v a r i a b l e s ( p r i c e a n d serviceportfolio)wasconsideredtoaddinthisstudy.Thequestionnairefocusednotonly o n thecomponentsofservicequalitybutalsoontheoverallquality.Respondents we re askedt o g i v e b o t h t h e i r p e r c e p t i o n s a n d e x p e c t a t i o n s o f B I D V t r a d e f i n a n c e s e r v i c e s quality.Thequestionnairewasadministeredbye-mail,faxandpersonaldelivery.
Variables
SERVQUALmodelbutmodifiedtor e p a i r i tsw eak nessa nd to be su i t a b l e to th ep rac t ice Customerexp ect at io ns a r e th ose t h at thecustomerexpectsas“shouldbe”or“can be”.Thestudyconcentratesoncustomers’p e r c e p t i o n s o f t h e f o l l o w i n g S E R V Q U
Tangibility:referencetothephysicalevidenceoftheservice:Physicalfacilities,eq uipmentandappearanceofemployees.
Assurance:Assuranceoriginatedfromfourdimensions,namelycompetence,courtesy,cr edibility andsecurity.This di me nsi on refersto ski ll s andkn ow led ge ofemplo yees,politeness,respect,considerationandfriendlinessofemployees,trustworthines s,believabilityandhonesty,andthefreedomfromriskordanger.
Empathy:Theempathydimensionoriginatedfromthreeotherdimensions:acce ssibility,communicationandunderstandingthecustomers.Itreferstocustomersw a i t i n g time,providingthecustomerwithinformationinanappropriatewaysuchthatthecustomerca nunderstanditandprovidingtheindividualattentiontocustomersandlearningspecificcustomerr equirements.
Besidesthat,accordingthepreviouspracticalstudiesinsomecountries,marketingmi xf a c t o r s theoryandmyselfpre– testingsurvey,then,twovariableareconsideredtoapplyinthismodel:
Price(charge):i so n e o f t h e marketingmixelements.I n t h e b a n k i n g industry,p r i c e isasensitivefactorandstronglyinfluencesonthecustomer’sdecisiontodealw i t h a b a n k P r i c e i n t h i s c a s e c a n b e u n d e r s t o o d i n t e r m s o f l o a n i n t e r e s t r a t e s , servicecharges.(ex.Discountrate,L/Cissuingcharge,L/Csettlementcharge…)
Portfolio:Itmentionsthevarietyoftradefinanceservice.Thewidthandbreadtho f theser vicesisprovidedbythebankprovesonestopsolution.
Measurementandscales
Measurements c a l e s w e r e b a s e d onp r e v i o u s s t u d i e s t h a t w e r e d i s c u s s e d i n t h e literaturereview.Aseven-pointLikert scale,whichrangesfrom1-stronglydisagree to7-s t r o n g l y agreewasusedinthisstudy.
TestsUsedforDataAnalysis
EVIEWSv e r s i o n 7 0 w a s us ed t o co m p u t e a n d an al yze the d a t a T h e s t a t is t i c a l t est s usedint he analysisofda ta includeddescriptivestatistics,testingof m u lt i co l l i n e a ri t y a n d n o r m a l i t y o f d a t a , r e l i a b i l i t y a n a l y s i s , c o r r e l a t i o n a n a l y s i s , a n d r e g r e s s i o n analysis.
Dataanalysis
Preliminaryresults
PartIofquestionnairewasdesignedtoseekinformationaboutthetypesoffirm,t ypesoftransactions,frequencyand atwhichbranch that customersdo theirtransactions.R esul tshowedthat40%ofthe respondentsaregroupofjointstock company.Limitedcompany,s t a t e o w n c o m p a n y t o o k 2 9 % a n d 1 5 % r e s p e c t i v e l y int h i s survey.J o i n t v e n t u r e companyandprivatecompanyequaledtoth erateof8%.Importtransactionisst i ll themainbusinessinHoChiMinhcityarea(83%).T hesurveyalsoshowedthatthef r e q u e n c y o f u s i n g t r a d e f i n a n c e s e r v i c e s o f t h e r e s p o n d e n t s i s r e g u l a r T h e d e t a i l e d b r e a k d o w n ofthegeneralinformationofthe customershasbeengiveninTable4.1.
Part II of the questionnaire evaluated customer perceptions of BIDV's trade finance service quality, revealing significant gaps between customer expectations and actual service delivery The data in Table 4.2 highlights that customers are dissatisfied with the service quality, particularly in the empathy dimension, where the largest gaps were identified In contrast, the portfolio dimension showed a smaller gap, indicating that customers find this aspect less critical, likely due to the similarity of banking services across competitors As banks can easily replicate each other's offerings, customers are increasingly focused on the empathy dimension, which underscores the importance of human resources, including employees and managers, in delivering quality service.
Besidesthat,accordingtocustomers’expectation,theBIDV’stradefinanceservices qualitymustgetatthescore of6.59.However,actually,customersonlyperceivetheservicequalityat5.22.Thedifferenceis1.3 7.Thisindicatethattheoverallperceptiono f servicequalityisnotwell.Thisissurethattobecometh eleadingone,tocompetewitho th ers, BIDVmustimproveitstradefinanceservicesquality.T hisexplorationansweredt hefirstresearchquestion.
Hypothesesdevelopment
Asmentionedabo ve, t h e r e a rese ven factors a f f e c t tos er vi ce quality.B a s e d o n e m p i r i c a l studiesandself–experience,hypothesesaredevelopedasthefollowing: Ta ng ib il it y: Ha.0.TangibilityhasnocorrelationwithBIDV’stradefinanceservicesquality.H a 1 Tangi bilityhascorrelationwithBIDV’stradefinanceservicesquality.
Hb.0.ReliabilityhasnocorrelationwithBIDV’stradefinanceservicesquality.H b 1 Relia bilityhascorrelationwithBIDV’stradefinanceservicesquality.
Hc.0.ResponsivenesshasnocorrelationwithBIDV’stradefinanceservicesquality.H c 1 Respons ivenesshascorrelationwithBIDV’stradefinanceservicesquality.
Hd.0.AssurancehasnocorrelationwithBIDV’stradefinanceservicesquality.Hd.1.Assuran cehascorrelationwithBIDV’stradefinanceservicesquality.
He.0.EmpathyhasnocorrelationwithBIDV’stradefinanceservicesquality.He.1.Em pathyhascorrelationwithBIDV’stradefinanceservicesquality.
Hf.0.PricehasnocorrelationwithBIDV’stradefinanceservicesquality.H f 1 Pricehas correlationwithBIDV’stradefinanceservicesquality.
Hg.0.PortfoliohasnocorrelationwithBIDV’stradefinanceservicesquality.H g 1 Po rtfoliohascorrelationwithBIDV’stradefinanceservicesquality.
Regressionresults-test andanalyze
Thef i r s t i d e a c o m e s f r o m t h e r e g r e s s i o n modelb a s e d o n f i v e dimensionofP a r a s u r a m a n (1988).Amultipleregressionanalysiswasconductedt oevaluatehowwellt h e fivedimensionspredictedtheservicequality.Theregressionresultisasfollo ws.
TheresultshowsthatR 2equals to0.6834.Itmeansthat68.34percentvariationinserviceq u a l i t y (dependentvariable)c a n ber e a s o n a b l y e x p l a i n e d byj o i n t l y f i v e independent variablessuchasAssurance,Empathy,Reliability,Responsiveness,Tangibility.
At a significance level of 0.05, the p-values for Assurance, Empathy, Reliability, and Responsiveness are all below 0.05, allowing us to reject the null hypothesis and confirm their correlation with the quality of BIDV's trade finance services In contrast, the p-value for Tangibility is 0.4134, which exceeds the significance threshold, indicating insufficient evidence to reject the null hypothesis; thus, Tangibility does not significantly influence service quality This finding aligns with practical observations, as the evolving business environment and the rise of internet banking suggest that Tangibility is not a critical factor affecting trade finance service quality, leading to its exclusion from the analysis.
Clearly,addingtwoindependentvariables(Price,Portfolio)increasedR 2.This ist h e g o o d sign.R 2equal to0.6952.Itmeansthat69.52percent variationinservicequality
(dependentv a r i a b l e ) c a n b e r e a s o n a b l y e x p l a i n e d byj o i n t l y s i x i n d e p e n d e n t v a r i a b l e s suchasAssurance,Empathy,Reliability,Responsiveness,PriceandPortfolio.
Withthesignificantlevel0.05,p- valueofeachvariable(exceptPriceandPortfolio)is lessthan0 0 5 Wecant he ref or e r ejectthenull hypothesis I t meansthatAssu r an ce, Empathy,Reliability,Responsive nessh a s correlationwithBIDV’stradefi n a n ce servicesquality.
Hypothesis t e s t f o r Portfolio: s i n c e p – value( 0 1 0 4 9 ) i s moret h a n s i g n i f i c a n t l e v e l (0.05),wecannotrejectnullhypothes is.Inotherwords,withoutotherdata,thereisn o e n o u g h e v i d e n c e t o c o n c l u d e t h a t P o r t f o l i o h a s c o r r e l a t i o n w i t h B I D V ’ s t r a d e f i n a n c e servicesquality.I nfact,Portfolio(rangeofproducts/ services)isstillmeaningfult o customers.However,thecharacterofserviceamongba nksishomogeneous.Abankc a n copytoprovideasimilarservicefromthecompetitorstoc ustomers.Therefore,witht h e availabledataandreality,portfolioisnotprovedtobesignifi cantcustomers’p e r c e p t i o n toservicequality.
Hypothesis test forPrice: similarly, sincep– value(0.3655)ismorethans i g n i f i c a n t level(0.05), wecannot rejectnullhypothesis.Thereisno enoughevidencetoa ff i r m thattherehascorrelationbetweenPriceandBIDV’stradefinanceservices quality.
On theother hands,at thebeginning,we expectthat Pricehas negativecorrelationwi th BIDV’stradefinanceservicesquality.Itmeansthatthemorec ompetitivechargesandinterestsare,thehighercustomersevaluatethetradefinanceser vicesquality.H o w e v e r , c o e f f i c i e n t s i g n i s d i f f e r e n t f r o m t h e f i r s t e x p e c t a t i o n ( p o s i t i v e c o r r e l a t i o n ) T h i s canbeinterpreted thatcustomersexpect highpriceiscorrespondingtohighservicesq u a l i t y level.Thisiscompletelysuitabletore ality.SomeforeignbankscanchargethehigherL/
Fromthehypothesistests,wecanexcludetwovariables(Priceandportfolio)fromtheregres sionmodeltogetthenewone.
R 2equals to 0.6812.Itmeansthat 68.12percentvariation intradefinanceservicesq u a l i t y (dependentvariable)canbeexplainedjointlybyfourinde pendentvariablessucha s Assurance,Empathy,Reliability,Responsiveness.
Hypothesestests. p- valueofeachoffourvariablesi s lessthansignificantlevel(0.05).Therefore,w e canr ejectthenullhypothesis.ItmeansthatAssurance,Empathy,Reliability,R e sp o n si v e n es s hascorrelationwithBIDV’stradefinanceservicesquality.
Regressioncoefficientsofeach variables(Empathy,Assurance,Responsiv eness,Reliability)e x p l a i n t h e c h a n g e i n s e r v i c e q u a l i t y ( d e p e n d e n t v a r i a b l e ) f o r a o n e u n i t c h a n g e ineachindependentvariables.
Correlationm a t r i x d i s p l a y s t h e c o r r e l a t i o n s a m o n g fourd i m e n s i o n s o f s e r v i c e quality.Theco rr el at io n coefficientvaluesrangefrom 0.33to0.52a n dthisindicatesamoderatepositiverelationshipbetweenthefour dimensions ofse rvicequality,becausethecorrelationvalueislessthan0.8,multicollinearitydidnotexist.
Watsonstatfromtheregressionequalto2 0 5 8 3 3 9 whichisverynearto2.Therefore,autocorrela tionwasnotathreat.
Berastatisticis1.0826andthecorrespondingpvalueis0.5819.Becausep v a l u e i s m o r e t h a n 5 p e r c e n t , w e a c c e p t n u l l h y p o t h e s i s , meaningt h a t p o p u l a t i o n r e si d u al s (u)isnormallydistributedwhichfulfillstheassumption ofagoodregressionli ne.
Whitetest.H o :Thevarianceofresiduals(u)arehomoscedast icH1: Thevarianceofresiduals(u)arehetroscedastic.
Thep–valueofObs*R– squaredshowsthatwecannotrejectnullhypothesisatthesignificantlevelof5%.Therefore,re sidualsdohaveconstantvariance.Itmeansthatresidualsarehomoscedastic.
Findings
Basedonpre– test,althoughtwovariables:PriceandportfolioaremeaningfultocustomersandIexpectthatse venindependentvariablessuchas:Tangibility,Assurance,R e s p o n s i b i l i t y , R e l i a b i l i t y , E m p a t h y , P r i c e , P o r t f o l i o h a v e c o r r e l a t i o n t o B I D V ’ s t r a d e fi n an ce s e r v i c e q u a l i t y H o w e v e r , onlyf o u r d i m e n s i o n s ( R e l i a b i l i t y , R e s p o n s i v e n e s s , Assurance, Empathy)aretestedtohavepositiverelationshiptotheservicequality.
Amongf o u r m e a n i n g f u l dimensionsi n e x p l a n a t i o n o f v a r i a n c e o f d e p e n d e n t v ar i a b l e – servicequality,managersn e e d t o f o c u s moreo n E m p a t h y d i m e n s i o n t o improvetheservicequality.
Thep u r p o s e o f t h i s c h a p t e r i s t o a n s w e r c l e a r l y t h r e e r e s e a r c h q u e s t i o n s T h e r e su l t showsthatthereactuallyexistthegapsincustomers’expectation andperception.S o , B I D V ’ s t r a d e f i n a n c e s e r v i c e s q u a l i t y h a s n o t s t i l l s a t i s f i e d thec u s t o m e r s completely.Whatarecustomersperceivearefarfromwhattheyexpect.Thisch apteralsoindicatesthatonlyfourdimensions: reliability,responsiveness, assurance, empathyares i g n i f i c a n t T h e s e e l e m e n t s a r e p o s i t i v e r e l a t i o n s h i p t o t h e s e r v i c e q u a l i t y e s p e c i a l l y e m p a t h y fac to r T h e s t a t i s t i c t e s t s o n hy pothesest e s t , m u l t i c o l l i n e a r i t y tes t, a u t o c o r r e l a t i o n t e s t , r e s i d u a l n o r m a l i t y t e s t , d e p e n d e n t v a r i a b l e h e t e r o s c e d a s t i c i t y t e s t w h i c h r e s u l t s d
Page40 o n o t v i o l a t e t h e s t a t i s t i c assumptionsp r o v e t h e g o o d s i g n f o r f i n a l r e g r e s s i o n model.T h e e x p l o r a t i o n isveryu s e f u l f o r managementi m p l i c a t i o n s
Chapter4 p r e s e n t e d t h e analysisr e s u l t s andsomemainf i n d i n g s o f t h e study.T h i s c h a p t e r su m m a r i z e d a l l h y p o t h e s e s t h a t a r e u s e d t o a n s w e r f o r t h e r e s e a r c h q u e s t i o n s Someimplications aresuggestedfor practitioners.Thelimitationsofthisstudyandsomesuggestionsforfurtherresearchesarealsopre sentedinthischapter.
Conclusions
Ha.1.TangibilityhascorrelationwithBIDV’stradefinance servicesquality NO
Hb.1 Reliabilityhas correlation withBIDV’stradefinance servicesquality YES
Hd.1.Assurance hascorrelation withBIDV’stradefinance servicesquality YES
He.1.EmpathyhascorrelationwithBIDV’stradefinance servicesquality YES
Hf.1.Price hascorrelationwithBIDV’stradefinance servicesquality NO
T h e r e e x i s t s gapsamongthed i m e n s i o n s ofservicequalityandoverallservicequalit y.Therefore,BIDVshouldcontinuetomakealleffortstonarrowthegapsandimprovetheserviceq uality.
Toanswerthesecondresearchquestion,theresultsinTable5.1revealedthat,withthec o l l e c t e d d a t a , i n s t e a d o f s e v e n a s p e r f i r s t e x p e c t a t i o n , onlyf o u r f a c t o r s u c h a s : reliability,responsiveness,assurance,empathycorrelatepositivelywithservicequality.
Implicationsandrecommendations
Thiss t u d y p r o v i d e s ani n s i g h t i n t o s e r v i c e q u a l i t y managementina s p e c i f i c b u s i n e s s fieldofabank.IdentifyingdimensionswhichinfluenceonBIDV’stradefi nanceservicesqualityhelpsthebankallocatelimitedresourcesacrosscomponentstoreach the objectivesinamosteffectiveway.Theresultsrevealedchangesinperceptionofservicequal itydimensions.Thisstudysuggestedthatbankmanagersshouldfocusmoreeffortsi n t o empathyfactor,then,reliability,responsiveness,assuranceandtangibility.
Int h i s s t u d y , m o d i f i e d modelw a s u s e d t o r e f l e c t morec l e a r l y t h e n a t u r e o f c o m p e t i t i v e n e s s i n V i e t n a m e s e b a n k s w h e n t h e i n t e r e s t r a t e r a c i n g o c c u r r e d P r i c e i s importantfactorbutitisnotall.Maybe,inshorttermorforsom egroupsofcustomers,p r i c e becomesmorecrucial.But,inlongterm,whataretheactu alfactorsinfluenceonservicequalityinthecustomer’sv i e w O n l y f o u r d i m e n s i o n s o f empathy,r e l i a b i l i t y , r e s p o n s i v e n e s s , a s s u r a n c e a r e t e s t e d tos u p p o r t t h e f a c t t h a t theyc o r r e l a t e d t o s e r v i c e quality.Clearly,customersstillaccepttotrans actbusinesswiththeforeignbankswitht h e higherfeesthandomesticbanks.Ho wever,theyalsoreceiveahighservice qualitysuchas:professionaladviser,promptnessand accuracyasperthebank’scommitments.
Tos u m u p , B I D V s h o u l d h a v e a s p e c i f i c s t r a t e g y thatf o c u s e s o n t h e humanresourcequality.Itrequirestheircompetenceadaptstoprofessionalandeffecti vework.T h i s c a n begotfromthecarefulrecruitmentandselectionaswellasmethodicaltraining.I n training, BIDVcanrotateemployeesfromtradefinancedepartmenttoforeigne x c h a n g e o r t o c o r p o r a t e c r e d i t d e p a r t m e n t T h e p u r p o s e i s t o helps t a f f s t o h a v e t h e g en e r al wideknowledgetoadvisecustomersbetterandimprovetheirperformance.
Thepointofthisstudyisthatempathydimensionhasthestrongesteffectonthet r a d e f i n a n c e s e r v i c e q u a l i t y T h e r e f o r e , managersa n d s t a f f s s h o u l d mast ert h i s c o r e problem.Thisfactorfocusesonfinding and understandingthespecif iccustomerr e q u i r e m e n t s andprovidingtheindividualattention.BIDVshouldreconsider whethertheo p e r at in g h o u r s i s c o n v e n i e n t t o c u s t o m e r s o r n o t ( b e c a u s e , a t t h i s t i m e , onlys o m e b r a n c h e s i s o p e n o n S a t u r d a y ) B e s i d e s , t h e manage rsc a n t e s t t h e s e r v i n g a t t i t u d e o f employeesregularlyandunscheduledbytelephone callsordirectexaminationsatofficed e s k Moreover,negotiationandcommunicationskillsare alsotrainedprofessionally.
Thel as t b u t n o t l e as t , B I D V sh o u l d b e i n t e r es t e d i n s h a r i n g b e n e f i t sa s we l l a s d i f f i c u l t i e s tocustomersespeciallyintheperiodofUSDshortageandpreferentiallendingra te forthekeyimportsandexports.
Assessment
Strength
Themethodofresearch combinestheexperiment,statistic andanalysis So, th er e s u l t s ensurethelogicandreliable.
Modelisdeveloped fromthevaluable previousresearches,but itismodifiedto suitableforthepractice.
Limitations
Modelisthesimplification ofdimensions.That isthereasonwhythe independentv ar iab l esonlyexplain68.12percentthevariationofthedependentvariabl e– servicequality.T h e r e s t b e l o n g s t o t h e r e s i d u a l , o t h e r u n e x p l a i n e d f a c t o r s H o w e v e r , t h e g o o d n e s s offitoftheregressionmodelswasreasonablyacceptable.
Aspresentedinpreliminaryresults,twobranches(HoChiMinhCityBranchandS a i G o n B r a n c h ) t a k e t h e morer a t i o o f t h e survey.T h i s makest h e s t u d y d i d n o t ind icatee x a c t l y f o r thelargeareaofHoC h i MinhC i t y T h i s studyn e e d s tob e impl e mented inmoreotherbranches.
Relatedl i t e r a t u r e r e v i e w p r o v i d e s t h e f r a m e w o r k f o r s e l e c t i n g a s u i t a b l e mod el.SE RQUAL is c o n s i de r e d t o a p p l y because o f i t s p o p u l a r i t y anda d v a n t a g e s
C o l l e c t e d d a t a i s a n a l yz e d c l e a r l y toa n sw e r t h r e e r e s e a r c h q u e s t i o n s sy s t e m a t i ca l l y B es i d es t h e strength,thisthesisalsohaslimitations.Itisthemotivationforthefurther researches.
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ITEM INFO TANGIBILITY RELIABILITY RESPONSIVENESS ASSURANCE EMPATHY PRICE PORTFOLIO SER.QUAL
CP: Jointstockcompany,TNHH:LimitedCompany,TN: PrivateCompany,LD:Jointv e n t u r e company,NN:StateownC ompany
TRANS: kindsoftransaction- NK: imports ,XK: exports ,XNK: imports+exports
FREQ: frequency- D: daily ,W: weekly ,M: monthly ,O: others
Nghiêncứunàynhằmt ì m h i ểuý k i ếncủaQuýkháchh à n g v ềc h ấtl ư ợ ngsảnphẩmt à i t r ợt h ư ơ n g mại(TTTM) tạiBIDV.XinvuilòngchobiếtmứcđộmàQuývịkỳvọngngânhàngnêncungứngdịchvụcũngnhưmứcđ ộcảmnhậnvềchấtlượngdịchvụmàQuývịnhậnđượcchocácphátbiểubêndưới.Khôngcócâutrảlờiđ úng/sai.Cáccâutrảlờicũngđượcgiữkín.Điềuchúngtôiquantâmlàcácsốđiểmtừ1-
7thểhiệnýkiếncủaquývị.Thangđiểmđolườngtăngdầnvới1làhoàn toàn không đồng ý và7làhoàn toàn đồ ng ý.
(ThissectionofthesurveydealswithyouropinionsofBIDV’stradefinanceservi ces.P l ea s e showtheextenttowhichyouexpectbanksshouldpossesandwhichyoubelieveorfeel thisbankhasthefeaturedescribedinthestatement.Answersarenotjudgedtobewr o n g orright.Answersare alsokeptsecret.Here,weare interestedinanumber from1to7thatshowsyourexpectationorperceptionaboutthebank.)
Ph ần 1: Thông tinch u ng (Part 1:GeneralInformation)
Hàngngày(Daily) Hàngtuần(weekly) Hàngtháng(monthly)
Ph ần 2: Bảng câu hỏi ( PartII:Questionaire )
ITEM Thangđiểm kỳvọng - Score(Expect
Thangđiểm cảmnhận - Score(Perce ption) Yếutốhữuhình(Tangibles)
Keeppromises to do something byacertaintime
Q6:hiquv ị cv ư ớ n g mc,BIDVcảmthng,tậntâmxl
Q: C u n g cấp sảnphẩmdịch vụ đúngthời hạn cam kết
Q9: Hồsơ,chứngtừ chính xácAccuracy ofrecords
Q10 :Ngânhàngcho biết chính xáckhi nàohoàntấtgiaodịch
Q15:Đảmbảo độantoàn khigiaodịch.Safetyintransactions
Q1:Nhânv i ê n n g â n h à n g dànhchoquv ị squant â m c á nhân. (Individualattentionyoureceive)
Q28:Chấtlượngdịch vụtàitrợthươngmạitạiBIDV làrấttốt.BIDV’stradefinance servicesqualityisverywell
Q30:Hàil ngv ề c h ấ t l ư ợ ngdịchv ụt à i t r ợt h ư ơ n g m ạ itạiBI