THE STUDY OF PERSONEL SERVICE QUALITY WITH BANK CUSTOMER SATISFACTION IN ASIA COMMERCIAL BANK, DANANG BRANCH, VIET NAM

The University of Danang- Shu-Te University
THESIS PROPOSAL
Student: Nguyen Hai Phu
Advisor: Dr. Yi-Feng Yang
Co-advisor : Dr. Duong Lien Ha
22th July, 2012
THE STUDY OF PERSONEL SERVICE QUALITY WITH BANK
CUSTOMER SATISFACTION IN ASIA COMMERCIAL BANK, DANANG
BRANCH, VIET NAM
1
OUTLINE
• Introduction
• Literature Review
• Research Methodology
• Research Expectation
2
INTRODUCTION
3
Introduction about State Bank of Vietnam
• The development process of the Vietnam banking system could be divided into 4
periods as follows:
Period 1. From 1951 to 1954: The Vietnam National Bank was founded and had
relatively independent operations in the financial system, implementing the first
important duties assigned by the Communist Party of Vietnam and the Government.
Period 2. From 1955 to 1975: Reinforce the money market, stabilize prices,
contain inflation and create favourable conditions for the economic recovery.
Period 3. From 1975 to 1985: This is the ten-year postwar economic recovery after
the liberation and reunification of the country.
Period 4. From 1986 up to now: the state management function was gradually
separated from the commercial credit and monetary functions. The new mechanism
of banking operations was built up and gradually improved.

4
Commercial banking system and financial cooperation include:
- 02 banks for social policies;
- 01 people’s credit fund;
- 05 state commercial banks (including banks which are equitized,
but the state holds more than 51% stakes);
- 37 joint-stock commercial banks;
- 06 joint venture banks;
- 05 banks with 100% foreign capital;
- 13 financial leasing companies;
- 17 financial companies and 48 branches of foreign banks.
Introduction about Asia Commercial Bank
5
- Asia Commercial Joint-Stock Bank (ACB) was established under the
Business License No. 0032/NH-GP dated 24 April 1993 issued by the State
Bank of Vietnam.
- Year 1996: ACB was the first Vietnamese commercial joint-stock bank to
issue ACB-MasterCard – an international credit card.
- Year 2005: Standard Chartered Bank (SCB) signed an agreement with ACB
on a comprehensive technical assistance, and became ACB’s strategic
shareholder.
- Year 2011: ACB chartered capital was increased to VND 9,000,000 billion.
Moreover, the total nationwide branches and sub-branches have reached a
number of 328.
Introduction about Asia Commercial Bank
6
Objectives
• To measure the overall level of customer satisfaction about the service of
Asia Commercial Bank, Danang Branch.
• To find out the factors of service quality affecting to customer satisfaction

in banking service.
• To find out the Multiple Linear Regression Equation of the relationship
between factors of service quality and customer satisfaction.
• From the findings of the survey, some implications can be given to improve
the overall customer satisfaction.
7
Study gaps
• This study is conducted in ACB, Danang, Vietnam. This branch is located
at the middle of Vietnam, but besides that, Vietnam comprises 3 areas,
including North, Middle and South. So, if the study can be conducted in
all of the areas of Vietnam, the result can be better and representative for
the population.
• Furthermore, the period time for the collecting data and analyzing is not
long, so the sample size is not big enough to make sure that the result is
reliability. If I have more time, I will expand the sample size and make
the results getting more reliable.
8
Research questions
Q1: Do customers who using the service of ACB (Asia Commercial
Bank), Danang Branch feel satisfied?
Q2: How can service quality be measured?
Q3: How do service quality’s attributes affect to customer
satisfaction?
9
LITERATURE REVIEW
10
Literature Review
Service Quality
According to a research of O.M. Karatepe et al. (2005), service quality of a bank can be measure
by 4 factors, including Service Environment, Interaction Quality, Empathy and Reliability.

And this factors can affect to customer satisfaction.
Figure 1: Model of Service Quality
11
SERENV
INTQUAL
EMP
REL
Customer Satisfaction
Banking Service Quality
The bulk of the research on service quality in banks has been in the context of
US and European banking institutions. At this juncture, it is important to also
study banking institutions based in developing economies like India, which has
recently liberalized its banking sector. As banks in such countries as India
mature, lessons may be learned from their experiences by banks in developed
economies as well as in other developing countries, as banking becomes more
and more globally integrated. In fact, there exists a significant gap in the service
marketing literature on how consumers evaluate service quality in contexts and
cultures very different from the developed countries, even though research has
begun to explore this area (Bolton and Myers, 2003).
Literature Review
12
Anders Gustafsson, Michael D. Johnson, & Inger Roos (2005) indicated that
customer satisfaction could be defined as customer's overall evaluation of the
products or services. In service sector; service quality has directly effect on
customer satisfaction. Ingrid FecÏikovaÂ, (2004) explained satisfaction as a
feeling which results from a process of evaluating what customer receive in
comparison with what they expected, the purchase decision itself and/or the
fulfillment of needs/want.
Literature Review
Customer Satisfaction

13
RESEARCH METHODOLOGY
14
Model of research
Interaction Quality
Empathy
Reliability
Customer Satisfaction
Independent Dependent
Research Methodology
Figure 2: Research Model
15
Service Environment
Hypotheses
• (H1) Service Quality has a positive effect to customer satisfaction.
• (H2) Interaction Quality of the Bank has a positive effect to customer
satisfaction.
• (H3) Factor Empathy has a positive effect to customer satisfaction.
• (H4) Reliability has a positive effect to customer satisfaction.
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Items for measuring Service Quality
17
No. Items
1 The exterior of the bank
2 The interior of the bank
3 Employees of the bank have neat appearances
4 The interior of the bank is spacious
5 Employees of the bank have the knowledge to respond to problems
6 Employees of the bank are polite to customers
7 Employees of the bank are experienced

Items for measuring Service Quality
18
No. Items
8 Employees of the bank instill confidence in customers
9 Employees of the bank are understanding of customers
10 Employees of the bank serve customers in good manner
11 A warm relationship between employees of the bank and customers
12 This bank does not make its customers stand in a queue for a long time
13 Employees of the bank enact transactions on a timely manner
14 Employees of the bank always help customers
No. Items
15 Employees of the bank provide individualized attention to customers
16 Employees of the bank are willing to solve customer problems
17 Employees of the bank provide error-free service
18 Employees of the bank carry out customer transactions confidentially
19 Employees of the bank provide customers with precise information
20 This bank informs customers about its financial operation accurately
Items for measuring Service Quality
Items for measuring Customer Satisfaction
• For the overall Customer Satisfaction, I use 2
items to ask respondents about it, including:
• Overall Satisfaction:
• You feel satisfied with the service which the bank provides
you.
• Expectation:
• The service the bank provides can meet your expectation.
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Data Collection
• 250 customers who use the service of the bank will be asked for
answering the questionnaire.

• When customers come to the bank for their business, they can be chose
to answer the questionnaire, but it is not required. If they are willing to
fill the questionnaire, it is better, because the validity and reliability of
the answers are getting better, and the result of the study can be
improved a lot.
• Questionnaire is written by using Vietnamese and English.
• Using paper questionnaire and e-questionnaire.
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Measurement
1 Strongly Disagree
2 Disagree
3 No Comment
4 Agree
5 Strongly Agree
5 points Likert Scale is used in the questionnaire to collect the answer of
respondents. Each item is measured on a five-point scale ranging from ‘‘5
strongly agree’’ to ‘‘1 strongly disagree’’. The ranking is:
Table 1 – Five Point Scale Ranking
22
Research Expectation
• Nowadays, the Economy of Vietnam is deeply integration into the world’s economy,
where financial market seems to be the fiercest competitive market. Especially, when
Vietnam has accepted for Foreign Banks to enter to this market for doing business, it has
becomes more fierce for local commercial banks, because foreign banks are professionals
in the retail banking sector. So, this study can contribute to improve the service quality of
local commercial banks for the overall and to help Asia Commercial Bank in improving
the service quality in particular.
• When the competition becomes more and more fierce, managers always try to find the
best ways to improve the service quality. With the aim of finding out the attributes of the
service quality to measure it, the result of this research aims to help managers of the bank

to get the attributes of service quality, the correlations between service quality’s attributes
and the overall customer satisfaction. And after that, the solutions can be given out to
solve the problems and also to improve the customer loyalty and the profit of banks.
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Reference list
• Parasuraman, A.V.A. Zeithaml, & Berry, L.L (1998), “SERVQUAL: A multiple-
item scale for measuring consumer perception of service quality ”, Journal of
Retailing,Vol.64 No.1, pp.12-37.
• Newman, K. (2001), “ Interrogating SERVQUAL: a critical assessment of service
quality measurement in a high street retail bank”, International Journal of Bank
Marketing, Vol.19 No.3, pp. 126-139.
• Shil Nikhil and Das Bhagaban, (2008), “ A Study of Customer Satisfaction with
Regard to banking: An application of QFD”, the Icfain Journal of Management
Research, Vol.VII, No.8, pp.7-26.
• Terrence Levesque, Gordon H.G. McDougall, (1996), “Determinants of customer
satisfactionin retail banking” , International Journal of Bank Marketing ,Vol.14 No.
7, pp.12-20.
• MA. Trinh Thanh Hai (2007), “Customer Satisfaction at Bank of Tokyo and
Mitsubishi,UFJ”
• CFVG programe.
• Kurt Matzler (2002), “The factor structure of Customer satisfaction” ,
InternationalJournal of Service Industry Management, Vol.13 No.4, pp.314-332.
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Time to
complete
Activity
2012
Sep 1
st
- Sep 20

th
Complete chapter 1 & 2
Oct – Oct 15
th

Questionnaire design
Complete chapter 3
Oct 16
th
- Oct 31
st

Pre testing questionnaire survey
Revise questionnaire survey if necessary
Nov
Sent out questionnaire survey
Collecting questionnaire survey
Dec
Data Analysis
Complet chapter 4
2013
Jan
Complet chapter 5
Full thesis completed and submitted thesis
Feb Ready for oral thesis defense
Timetable