Develop a service quality model for retail banking in VietNam Case study of techcombank

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HO CHI MINH CITY OPEN UNIVERSITY UNIVERSITÉ LIBRE DE BRUXELLES
SOLVAY BRUSSELS SCHOOL OF
ECONOMICS & MANAGEMENT

MBQPM4

“HUYNH QUANG ANH”



“DEVELOP A SERVICE QUALITY MODEL
FOR RETAIL BANKING IN VIETNAM: CASE
STUDY OF TECHCOMBANK”





MASTER FINAL PROJECT
MASTER IN BUSINESS QUALITY AND PERFORMANCE MANAGEMENT






Tutor’s name: Dr Jacques Martin

Ho Chi Minh City
(2014)

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Statementofauthentication

I certify that I wrote this thesis myself
I certify that the study has not been submitted for any other degrees
I certify that any help received and all sources used have been acknowledged in this
thesis with the best of my knowledge
This study does not necessarily reflect the views of the Ho Chi Minh City Open
University or Vietnam – Belgium Master Programs












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Acknowledgement
I would like to express my sincere appreciation to my thesis advisor, Dr Jacques
Martin, for his enlightening guidance and inspiring instruction in the development and
completion of this study.Thanks also go to the administrator of the class, Ms Hien, for
her support in searching articles on ULB’s library and solving other issues during
master course.
I also want to thank my boss and my colleagues, my boss for their support in carrying
out my works during my absence for prepairing the thesis. Thank you my cousins,
Tuyet and Thien, for their support in inputing data into SPSS and helping me to
prepare some paragraphs of this thesis.
A special gratitude and love goes to my family for their unfailing support. I thank my
parents and my sister for their abiding love. I thank my lovely daughter, Tao Heo, for
playing with me when I am stressful caused by my work and my learning. Finally, I
want to express my deepest love and thanks to my loving wife, Le Na, for her support,
understanding as best friend forever, taking care of our daughter, and sharing the
housework during 2 years of my study and the most difficult time of thesis writing
especially her idea on conducting survey on Techcombank staffs instead of external
customer really helps me a lot to complete my thesis successfully.

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Table of Contents
Statement of authentication 3
Acknowledgement 4
List of pictures and tables in report 7
Introduction 8
Research questions of the study 10
The scope & research method of this study 11
The Struture of this study 11
Chapter 1. Literature review 12

Why need a service quality model for retail banking in Vietnam? 12
Still debate but want to use because it is a good diagnostics tool 12
Develop a Service quality model based on SERVQUAL 13
Chapter 2. Research Methodology 16
Design questionnaire 17
Data collection 23
Data analysis 23
The Sample characteristics and banking behavior 23
Develop a service quality model based on Customers’ expectation about
institutions offering banking services 25
Measuring Service quality Using New Service quality model and Relative
Importance of service dimensions expected by Customer 32
Measure Service quality using New Service quality model & Equation of Service
quality rating and Customer Perception of Techcombank Service quality 35
Chapter 3. Discussion 38
Is this possible to use this new Service quality model for Techcombank? 38
Is there two equations of measuring service quality can be used for Techcombank? 39
Conclusion 41
Limitations of the study and avenues for further research 41
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References 42
Appendix 1. Relationship’s customer with other banks 44
Appendix 2. Customer expected on Service quality of Techcombank 45
Appendix 3. Customer survey 46
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Listofpicturesandtablesinreport

Figure 1. Modified SERVQUAL Model
Figure 2. Research Process
Figure 3. Total Variance Explained
Figure 4. Rotated Component Matrix for the first attempt
Figure 5. Rotated Component Matrix for the second attempt
Table 1. Questionnaire for evaluating Service quality at the banks
Table2. Vietnamese translated versions of Service quality models
Table 3. Gender and Working Experience in Techcombank
Table 4. Statistics of using Products with Techcombank
Table 5. Relationship working and customer experience with Techcombank
Table 6. Cronbach’s alpha calculation
Table 7.
KMO and Bartlett's Test

Table 8. Total Variance Explained
Table 9. Rotated Component Matrix
Table 10. Score of Each factor based on customers’ evaluation
Table 11. Mean of each criteria perceive by Techcombank customers
Table 12. Measuring service quality by Equation 1
Table 13. Regression Model summary
Table 14. Regression Cofficients
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Introduction

Vietnam Technological and Commercial Joint stock Bank - Techcombank was
established on September 27th, 1993 with the initial registered capital of VND 20
billion with the aim to become an efficient financial intermediary bridging the savers
with the investors in need of capital for business and economic development in the
open-door era.
Techcombank is ranked as one of the best banking Vietnam, it continue to be widely
recognized as the Best Bank overall as well as a leading bank in a number of specific
areas by some of the world’s most highly-regarded financial magazines such as the
Asian Banker, Global Trader review and Asian Banking and Finance and Alpha South
East Asia. Techcombank has more than 3 million customers to use personal financial
service such as personal accounts, savings and loans. It also has more than 300
branches across the country in order to best serve our customers, with a dense network
of ATMs which are online 24/7 in order to help customer with cashiers. Branch
network is constantly upgraded spacious, clean for better serving customers.
However, apart from the fact that our customers have not only used our products and
services but also use the products and services of other banks, which are among top of
banks in Vietnam such as Vietcombank, ACB, Sacombank, Agribank and a number of
foreign banks such as HSBC, ANZ. In this study, we interviewed 145 customers of
Techcombank (see Appendix 1) who are our employees with working experience from

3 to 5 years and the results are much interesting that 45% of them use the bank's
products and services of Vietcombank – one of the largest bank in Vietnam; 34% of
them use the ACB and Sacombank products – two largest commercial bank; 26% of
the products used Vietinbank – one of four state –owned banks; 25% of them use the
products of HSBC – the most well-known foreign bank in Vietnam and Agribank – the
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largest bank in Vietnam. Even our bankers, who love Techcombank most, tend to use
products and services of other banks not prove loyal. In other words, Vietnamese
customers are not loyal to retail banks, according to the latest research of Ernst &
Young (Thanh Thanh Lan, 2014), as 65–77 per cent of surveyed people were ready to
close their banking accounts and change to another bank.
Regarding to the less loyalty of Vietnamese customers table, the reason is there are
many banks in Viet Nam while Australia and Japan, for example, which have simple of
banking system, have 3-4 large banks, thus customers with leaving little choice. In
addition, Vietnamese banks provide simple product and retail banks compete mainly
with each other deposit whilst banks in other countries have on a range of products
from pension, credit, savings or insurance to mortgage, thus their Customers do not
change banks, as they will have to change all of the services.
Another factor was the quality of service of Vietnamese banks. This research also
revealed that one-half of Vietnamese customers closed their accounts or left their banks
due to issues of communication and experience in banking services. No official
research was done by Techcombank on how many customers have left Techcombank
because of bad service quality. But we have understood that services are strategic
development of global corporation and Techcombank is in the race for better service
quality and larger operations.
As a matter of fact, maintaining high service quality can make a profit, reduce costs
and expand market share. Convenient and effective distribution systems and
transaction processes, like clear-cut borrowing applications and quick processing, are a
sign of good service, financial strength, broad networks and technological prowess.

Besides, service quality also depends on the environment and the surroundings, like the
design and layout of customer service desks.
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Among elements that make up excellent service quality, staff is the most important.
While ATMs provide standard services at the same quality for customers, bank staff
can supply more complex services or customer-tailored services. Arguably, enhancing
service quality and using service quality as a useful competitive instrument for form
the groundwork, develop sustainably and take firm steps are urgent requirements in the
process of regional and international integration.
In recent years, we - quality management and improvement team of Techcombank
have developed a service quality model to control and improve service quality of the
bank. The model includes 3 factors physical facilities, process and people. We thought
that we will provide excellent service quality to customers if we would manage well
people, process and physical facilities by setting several quality standards such as
visibility and cleanliness of sign board, condition of building Interiors and exteriors,
staff attendance system in order, satisfactory dress code of staff (following
Techcombank regulations) or displays customer friendly body language and postures,
application and workflow updated & approved by SLA which was committed with
customers. The fact that the model is working smoothly, however, we don’t know what
we need to focus on improving people or physical evidence factors. The other question
is also important is that whether service quality which we try to provide to customer
will meet the customer expectations? What customers perceive service quality is what
we actually deliver to them.
Researchquestionsofthestudy
The objective of the study is to try to answer 3 questions as follows:
- The first question regarding how to apply the SERVQUAL model in order to
build the service quality model for retail banking in Vietnam
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- The second question regarding how to develop an equation in order to measure
service quality for retail banking of a bank, particularly in this study for retail
banking in Techcombank;
- The third question regarding what is relationship between perceptions of
customer on service quality and service quality dimessions
Thescope&researchmethodofthisstudy
This study concentrates to develop the service quality model for retail banking in case
of Techcombank. The questionnaire is to try to understand the expectation and
perception of customers who are working for Techcombank on the service quality of
the retail banking.
TheStrutureofthisstudy
The structure of this study divide into 4 chapters: The first chapter is to introduce about
the role of service quality and why need to measure service quality; the second chapter
is to review some literatures related to service quality, particularly, SERVQUAL
model; the third chapter will provide all data analysis and results and the last chapter
will come up with some conclusion and recommendation.





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Chapter1.Literaturereview
WhyneedaservicequalitymodelforretailbankinginVietnam?
We need to develop a model of service quality for retail banking in Vietnam because
almost articles assumed that the service quality model already existed, they used
directly Western models like SERVQUAL or SERVPERF for searching the
relationship between service quality and customer satisfactions in Vietnam bank
below. For example Lien and Minh used SERVPERF model as proposed by Cronin &

Taylor to assess perceived service quality at a Vietnamese commercial bank, and then
study the relationship between service quality and customer satisfaction on banking
service quality through regression analysis. In addition, in other articles authors such as
Dinh & Pickler also examined Service quality and Customer satisfaction in retail
banking sector in Vietnam but they did not explain the reason why they use the
SERVPERF instead of SERQUAL model for their examination.
Stilldebatebutwanttousebecauseitisagooddiagnosticstool
Underpinning our understanding of service quality is an array of factors or
determinants. A number of researchers have provided lists of quality determinants and
researchers further agree that Service quality is best represented as an aggregate of the
discrete elements from the service encounter such as reliability, responsiveness,
competence, access, courtesy, communication, credibility, security, understanding, and
tangible elements of the service offer (Cronin and Taylor, 1992; Parasuraman et al.,
1985).
However, SERVQUAL (Parasuraman et al., 1991) with five dimensions of service
quality, namely, tangibles, reliability, responsiveness, assurance and empathy directly
measures both expectations – and performance perceptions whereas SERVPERF only
measures performance perceptions. SERVPERF identified by Cronin and Taylor
(1992) uses only performance data because it assumes that respondents provide their
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ratings by automatically comparing performance perceptions with performance
expectations. Thus, SERVPERF assumes that directly measuring performance
expectations is unnecessary.
As Parasuraman et al. (1994) pointed out, the use of performance-only (SERVPERF)
versus the expectation/performance difference scale (SERVQUAL) should be
governed by whether the scale is used for a diagnostic purpose or for establishing
theoretically sound models. In the number of researches show that the SERVQUAL
scale has greater interest for practitioners because of its richer diagnostic value. By
comparing customer expectations of service versus perceived service across

dimensions, managers can identify service shortfalls and use this information to
allocate resources to improve SQ (Parasuraman et al., 1994). For instance, Karin
Newman (2001) presented a case analysis of a pioneering service quality improvement
program in the UK by one of the top ten retail banks which used SERVQUAL as the
main driver of organizational quality improvement initiatives. SERVQUAL not only
provided the means to introduce an element of devolution and self-autonomy to bank
branches but also had the merit of being equally well understood by staff and managers
and among staff in particular it escaped the cynical, “flavor-of-the-month” reaction to
past quality and customer service initiatives and paved the way for the acceptance of a
more intrusive check on branches such as the “mystery shopper”. However, he also
raised number of issues internally like absence of top management commitment that
need to be overcome in order to implement SERVQUAL successfully.
DevelopaServicequalitymodelbasedonSERVQUAL
In the original model built by Parasuraman et al. (1991) concluded that consumers
evaluated service quality by comparing expectations with perceptions on 5 dimensions:
(1) Tangibles (measured by four items): the appearance of physical facilities,
equipment, and personnel;
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(2) Reliability (five items): the ability to perform the promised service dependably and
accurately;
(3) Responsiveness (four items): the willingness to help customers and provide prompt
service;
(4) Assurance (four items): the knowledge and courtesy of employees and their ability
to inspire trust and confidence; and
(5) Empathy (five items): the level of caring and individualized attention the firm
provides to its customers.
These five dimensions are thus assessed by a total of 22 items. Each item is measured
on the basis of responses to two statements that measure:
(1) The general expectations of customers concerning a service; and

(2) The perceptions of customers regarding the levels of service actually provided by
the company within that service category
Some researchers like Kwan, W., & Hee, T. J. (1994) have used SERVQUAL entirely
to investigate bank service. Other banking researchers, although did mention
SERVQUAL in their comments on pertinent literature, chose not to use SERVQUAL
attributes or its dimensions to measure bank service quality. Among them are Avkiran
(1994), who investigated bank service quality in branches using 17 service quality
attributes which are emerged into four dimensions including staff conduct, credibility,
communication, and access to teller services or Johnston (1997) identified 18
determinants of bank service quality in terms of their relative importance and their
effect on satisfaction and dissatisfaction. However, Carrillat et al. (2007) approved that
SERVQUAL’s dimensions are contextual and not universally applicable, the number
and composition of the service quality dimensions are probably dependent on the
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service setting. An additional dimension, convenience, is added in service quality
model designed by Choudhury, K. (2008) and Kumar, M. et al., as it is one of major
concern for the bank customers particularly in Malaysia and India. The perception of
service “convenience” may affect customers’ overall evaluation of the service,
including satisfaction with the service and perceived service quality and fairness (Berry
et al.,2002).
In this study, we also use modified SERVQUAL model with added Convenience factor
in order to develop ourselves model for retail banking, which is assumed to contain six
dimensions (see Figure 1) with number of statements to be defined in the next session.

Figure 1. Modified SERVQUAL Model

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Chapter2.ResearchMethodology


Figure 2. Research Process




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Designquestionnaire
A five section of survey (demographics, service expectations, service performance,
overall satisfaction and customer feedback in order to improve service quality) was
especially designed and used for data collection (see Appendix 2 – Questionnair).
Service expectations and performance scores were measured in identical five point
Likert scales as was overall service quality and feedback on how to improve bank
service quality.
The battery of service attributes was built through reviewing the literature and
conducting focus groups of banking employees of Techcombank. The first stage,
literature review, produced an extensive list of 67 items listed in Table 1 include
modified SERVQUAL, definitions of the 18 determinants of service quality and bank
specific service quality measures such as BANQUAL-R (e.g. Parasuraman et al., 1991;
Johnston, 1997; Avkiran, 1994; Kumar et. al., 2009; ). Focus groups discussion
reduced the list down to 22 items (Table 1) that are incorporated in the questionnaire
after being several times of correction. The detail questionnaire is attached in this
Appendix 2.
We keep 22 items in our questionnaire for developing the service quality model

because some of items regarding Tangibles dimession also include in current our
quality standard control checklist that we mentioned in introduction part of this report
such easy bank location, convenient internal areas, neat and clear facilities. Other
criterias are added into this list because some of them are not available on current
standard such as website with clear and up to date information, convenient internet
banking or staffs play role as financial consults instead of simple banking saleman.
Table 1. Questionnaire for evaluating Service quality at the banks
#
Dimension Item
1 TANGIBLES
Ngân hàng đc đt trên các trc đng ln, d tip cn, d nhn bit và trong khu
vc có an ninh/Bank locations are at main street with easy to access, recognition
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and in safe place
2 TANGIBLES
Không gian giao dch b trí thun tin, thoáng đãng, các phân khu chc nng thân
thin và d hiu vi khách hàng/Bank has convenient internal bank area with clear
function areas and clear routing
3 TANGIBLES
Ngân hàng có c s vt cht sch s, ngn np , sáng sa/Bank has neat and clear
physical facilities
4 TANGIBLES
Ngân hàng có bãi gi xe rng rãi, an toàn/Bank has wide and safe car/motorcycle
parking
5 TANGIBLES
Nhân viên có ngoi hình a nhìn/ có tác phong chuyên nghip/ Bank has employees
with professional and good look apprance
6 TANGIBLES
Các n phm Marketing thit k n tng, đp mt (STK, th ATM, th, website, t

ri)/Bank has marketing materials related to services/products with nice and
impressive design (Saving book, ATM card, envelop, website, brochures and
leaflets
7 RELIABILITY
Ngân hàng có h thng x lý giao dch nhanh chóng, chính xác, không li/Banking
system runs effectively, timely and free from errors
8 RELIABILITY
Ngân hàng ch đng thông báo/cam kt thi gian x lý xong giao dch và thc hin
đúng cam kt/Bank proactively tell customers when transaction will perform and
perform as promised
9 RELIABILITY
Ngân hàng ch đng thông báo đy đ, chính xác, kp thi các thông tin mi v sn
phm/dch v, các thay đi v lãi sut, phí/Bank proactively tell customers about
new information related to products/services, fees
10 RELIABILITY
Ngân hàng cam kt bo mt thông tin khách hàng/Bank has commitment regarding
customer security
11 ASSURANCE
Nhân viên ngân hàng có thái đ lch thip, thân thin/Employees have warm and
polite attitude
12 ASSURANCE
Nhân viên cung cp đy đ chi tit tt c các thông tin sn phm/dch v theo yêu
cu ca khách hàng/Employees advise customers about products/services fully meet
customer requirements
13 ASSURANCE
Nhân viên thc hin các giao dch nhanh chóng, chính xác/Employees perform
transactions timely and exactly
14 RESPONSIVENESS
Nhân viên ghi nhn và gii quyt/hng dn x lý khiu ni khách hàng mt cách
nhanh chóng, chính xác/Employees receive and solve/guide customer complaints

exactly and timely
15 RESPONSIVENESS
Dch v Contact center 24/7 kt ni nhanh chóng, phn hi chính xác, thân
thin/Bank has Contactcenter 24/7 quickly receive customer call, answer warmly
and exactly
16 RESPONSIVENESS
Ngân hàng không đ khách hàng đi lâu và có các loi nc ung, bánh ko, báo
chí, TV ads, phc v khách hàng trong khi ch/giao dch/Bank ensure short
waiting time and deliver waters, cookies and newspapers during waiting time
17 EMPATHY
Nhân viên to cho khách hàng cm giác đc quan tâm khi giao dch vi ngân hàng
(ví d luôn ch đng chào hi/ h tr khách hàng khi cn thit)/Employees give
customers personal attention for example proactively welcome customers or
support customers if needed
18 EMPATHY
Nhân viên t vn cho khách hàng các gii pháp tài chính linh hot phù hp theo
nhu cu khách hàng/Employees advise customers flexible financial solutions
according to financial status of customers
19 EMPATHY
Ngân hàng chm sóc khách hàng liên tc sau khi khách hàng s dng dch v (nh
gi các tin nhn chúc mng, quà tng vào các ngày đc bit nh sinh nht, l
tt)/Bank takes care customer after sales/services such as sending a message/gift in
some special cases like customer’s birthday, Tet holiday
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20 CONVENIENCE
Mng li ATM b trí  nhng đa đim thun li, đáp ng tt nhu cu rút tin ca
khách hàng và luôn trong tình trng hot đng tt/Bank has ATM network which
locate in convenient places and always in good working condition with enough cash
amounts according with customers’ cash withdraw

21 CONVENIENCE
Ngân hàng có Website d s dng, thông tin đc cp nht liên tc, đy đ rõ
ràng/Bank has easy use website with clear and up to date information
22 CONVENIENCE
Ngân hàng có dch v internet/mobile banking đa dng, thun tin cho KH s
dng/Bank has diversified, convenient and easy to use internet banking
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Table 2. Vietnamese translated versions of Service quality models
SERVQUAL Model provided by
Parasunaman et al. (1991)
Service quality Model proposed by Johnston (1997) Service quality Model proposed by
Avkiran (1994)
XYZ bank has modern-looking equipment. /Công ty xyz
có trang thit b rt hin đi
Access: The physical approachability of service location, including the ease of finding one's
way around the service environment and clarity of route./Ngân hàng đc đt  v trí đ tip
cn, khi vào trong ngân hàng cm thy d dàng la chn và có bin ch dn rõ ràng
Willingness of branch staff to help me/Nhân viên
ngân hàng sn sang giúp đ
XYZ bank’s physical facilities are visually appealing./Các
c s vt cht ca công ty xyz trông rt bt mt
Aesthetics: Extent to which the components of the service package are agreeable or pleasing
to the customer, including both the appearance and the ambience of the service environment,
the appearance and presentation of service facilities, goods and staff./ thm m cao: Tng
yu t ca dch v phù hp và làm hài lòng khách hàng, bao gm c môi trng dch v, s
th hin và trình bày s s vt cht thit b, sn phm và nhân viên
Promptness of service from branch staff/Nhân viên
ngân hàng thc hin dch v nhân chóng

XYZ bank’s employees are neat-appearing. /Nhân viên
công ty xyz n mc rt tm tt
Attentive/helpfulness: The extent to which the service, particularly contact staff, either
provide help to the customer or give the impression of being interested in the customer and
show a willingness to serve./S quan tâm/Giúp đ: Th hin s quan tâm và sn lòng phc v
Concern shown by branch staff if queues get too
long/Bt đu lo lng khi thy nhiu khách hàng sp
hàng ch
Materials associated with the service (such as pamphlets
or statements) are visually appealing at XYZ bank./
Availability: The availability of service facilities, staff and goods to the customer. In the case
of contact staff this means both the staff/customer ratio and the amount of time each staff
member has available to spend with each customer/S sn sàng ca trang thit b, nhân viên
và sn phm. i vi nhân viên liên lc vi khách hàng thì c t l nhân viên/ khách hàng và
thi lng mi nhân viên có đ sãn sàng phc v cho tng khách hàng
Branch staff helping me learn how to keep down
my banking costs/Nhân viên ngân hàng ch cho
khách hàng làm th đ gim chi phí ngân hàng
When XYZ bank promises to do something by a certain
time, it does so/Khi công ty xyz ha làm điu gì đó vào
thi gian nào đó thì h s làm
Care: The concern, consideration, sympathy and patience shown to the customer. This
includes the extent to which the customer is put at ease by the service and made to feel
emotionally (rather than physically) comfortable./S chú ý, xem xét, thông cm và kiên nhn
th hin vi khách hàng. Bao gm c vic đem li cho khách hàng dch v mà khách hàng
cm thy thoi mái và s thoi mái này là s thoi mái v mt tinh thn/ cm xúc ch ko đn
thun là s thoi mái v mt vt lý.
Branch staff greeting me when it’s my turn to be
served/Chào khi bt đu giao dch
When you have a problem, XYZ bank shows a sincere

interest in solving it/Khi bn gp tr ngi, công ty xyz
chng t mi quan tân thc s mun gii quyt tr ngi
đó.
Cleanliness/tidiness: The cleanliness, neat and tidy appearance of the tangible components of
the service package, including the service environment, facilities, goods and contact staff./S
xut hin sch s, ngn np và gn gàng ca các yu t hu hình ca gói dch v, bao gm c
môi trng dch v, trang thit b và nhân viên.
Respect for privacy of my financial affairs when I
am standing at the counter/Nhân viên ngân hàng
th hin s thông cm khi khách hàng gp vn đ

XYZ bank performs the service right the first time/Công
ty xyz thc hin dch v đúng ngay t ln đu
Comfort: The physical comfort of the service environment and facilities./S thoi mái vt lý
ca môi trng và trang thit b
Personal attention I receive from branch staff/Th
hin thái đ quan tâm khách hàng
XYZ bank provides its services at the time it promises to
do so/Công ty xyz cung cp dch v đúng nh thi gian h
đã ha
Commitment: Staff's apparent commitment to their work, including the pride and satisfaction
they apparently take in their job, their diligence and thoroughness./S cam kt ca nhân viên
trong công vic, bao gm c nim t hào và s tha mãn mà h có đc t công vic, t
siêng nng và chu đáo ca h.
Branch staff being sympathetic when I have
problems/Nhân viên ngân hàng làm cho ngân hàng
cm thy thoi mái khi h vay n
XYZ bank insists on error-free records/Công ty xyz lu ý
đ không xy ra mt sai xót nào
Communication: The ability of the service to communicate with the customer in a way he or

she will understand. This includes the clarity, completeness and accuracy of both verbal and
written information communicated to the customer and the ability to listen to and understand
the customer./Nhân viên communicate vi khách hàng sao cho khách hàng có th hiu. Bao
gm s rõ ràng, s hoàn chnh và s chính xác ca c thông tin giao tip bng li hay bng
vn bn và kh nng nghe và hiu khách hàng.
Expression of genuine concern if there is a mistake
in my account/Th hin s quan tâm lo lng khi
khách hàng có vn đ
Employees of XYZ bank tell you exactly when services
will be performed/Nhân viên công ty xyz cho bn bit khi
nào thc hin dch v

Employees of XYZ bank give you prompt service/Nhân
viên công ty xyz nhanh chóng thc hin dch v cho bn

21


Original model provided by Parasunaman et
al. (1991)
Service quality Model proposed by Johnston (1997) Service quality Model proposed by
Avkiran (1994)
Employees of XYZ bank are always willing to help
you/Nhân viên công ty xyz luôn sn sàng giúp bn
Competence: The skill, expertise and professionalism with which the service is executed.
This includes the carrying out of correct procedures, correct execution of customer
instructions, degree of product or service knowledge exhibited by contact staff, the
rendering of good, sound advice and the general ability to do a good job./K nng, s thông
thái và chuyên nghip vi dch v đc thc hin. Vic này bao gm tin hành quy trình
đúng và thc hin đúng theo ch dn ca khách hàng, mc đ am hiu v sn phm

Branch staff making me feel at ease when applying
for a loan/To cho khách hàng cm giác nh nhàng
khi np h s vay
Employees of XYZ bank are never too busy to respond to
your requests/Nhân viên công ty xyz không bao gi qúa bn
đn ni không đáp ng yêu cu ca bn
The politeness, respect and propriety shown by the service, usually contact staff, in dealing
with the customer and his or her property. This includes the ability of staff to be
unobtrusive and uninterfering when appropriate./S lch thip, tôn trng và thích nghi đc
th hin bi công vic, thng là t nhân viên tip xúc vi khách hàng, trong vic x lý vi
khách hàng hay tài sn ca h. Vic này bao gm kh nng nhân viên thc hin sao cho
không phô trng và ko can thip khi thích hp.
Politeness of branch staff/Thái đ lch s ca nhân
viên chi nhánh
The behaviour of employees of XYZ bank instils confi
dence in customers/Cách c x ca nhân viên xyz gây nim
tin cho bn
Flexibility: A willingness and ability on the part of the service worker to amend or alter the
nature of the service or product to meet the needs of the customer./Sn sàng và có th điu
chnh hoc thay đi bn cht ca dch v hay sn phm đ đáp ng yêu cu ca khách
hàng.
Neat appearance of branch staff/Nhân viên có tác
phong gn gàng a nhìn
You feel safe in your transactions with XYZ bank/Bn cm
thy an tòan trong khi giao dch vi công ty xyz
Friendliness: The warmth and personal approachability (rather than physical
approachability) of the service, particularly of contact staff, including cheerful attitude, the
ability to make the customer feel welcome./S thân thin: S m áp, thái đ vui v và làm
cho khách hàng cm thy đc chào đón
Ability of branch staff to apologise for a

mistake/Nhân viên ngân hàng sn sàng xin li
Employees of XYZ bank are consistently courteous with
you/Nhân viên công ty xyz luôn nim n vi bn
Functionality: The serviceability and fitness for purpose or "product quality" of service
facilities and goods./Nng lc to mt sn phm/dch v có "cht lng"
Branch staff’s knowledge of bank’s services and
product/
Employees of XYZ bank have the knowledge to answer
your questions/Nhân viên công ty xyz có đ hiu bit đ tr
li câu hi ca bn
Integrity: The honesty, justice, fairness and trustworthiness with which customers are
treated by the service organization./Chính trc: trung thc, công bng, tin cy
Quality of advice given about managing my
finances/a ra đc nhng li khuyên tt cho
vic qun lý tài chính cho khách hàng
XYZ bank gives you individual attention/Công ty xyz luôn
đc bit chú ý đn bn.
Reliability: The reliability and consistency of performance of service facilities, goods and
staff. This includes punctual service delivery and ability to keep to agreements made with
the customer./S tin tng: ng nht trong vic cung cp dch v, gi đúng cam kt vi
khách hàng
Number of open tellers during the busy hours of the
day/Có nhiu nhân viên teller vào nhng lúc cao
đim trong ngày
XYZ bank has operating hours convenient to all its
customers/Côngty xyz làm vic vào nhng gi thun tin
Responsiveness: Speed and timeliness of service delivery. This includes the speed of
throughput and the ability of the service to respond promptly to customer service requests,
with minimal waiting and queuing time./S phn hi: Tc đ và thi gian cung cp dch v
bao gm c thi gian ch và thi gian xp hàng ngn nht

Ease of contacting the branch manager/Khách hàng
cm thy thoi mái khi liên lc giám đc chi nhánh
XYZ bank has employees who give you personal
attention/Công ty xyz có nhân viên bit quan tâm đn bn
Personal safety of the customer and his or her possessions while participating in or
benefiting from the service process. This includes the maintenance of confidentiality./S an
toàn cá nhân trong khi tham gia s dng dch v bao gm s bo mt
Ease of getting through to the branch on the
telephone/Khách hàng cm thy thoi mái khi gi
đin thoi đn ngân hàng
XYZ bank has your best interests at heart/Công ty xyz ly
li ích ca bn là điu tâm nim ca h

Employees of XYZ bank understand your specifi c
needs/Nhân viên công ty xyz hiu rõ nhng nhu cu ca bn

Employees of XYZ bank are always willing to help
you/Nhân viên luôn sn sàng giúp bn


22

Original model provided by Parasunaman et
al. (1991)
Service quality Model proposed by Johnston (1997) Service quality Model proposed by
Avkiran (1994)

Number of staff behind the counter serving
customers/S lng nhân viên phc v khách hàng

Branch staff telling me about the different types of
accounts and investments available/Nhân viên gii
thiu các sn phm mi

Branch staff telling me when services will be
performed/Nhân viên thông báo khi nào giao dch
s đc thc hin

Clarity of correspondence I receive from my
branch/Nhn đc các phn hi rõ ràng t chi
nhánh

Branch staff keeping me informed about matters of
concern to me/Tip tc thông báo cho khách hàng
các vn đ khách hàng quan tâm

Branch staff keeping their promises to me/Nhân
viên gi li ha

Ability of branch staff to put a mistake right/Kh
nng sa li ca nhân viên

Feeling of security in my dealings with the branch
staff/Cm giác an toàn khi giao dch vi nhân viên
ngân hàng

Ability of branch staff to get information quickly
from the computer/Kh nng x lý thông tin nhanh
chóng t máy tính

23

Datacollection
Questionnaires were asked by authors to customers who come to branches to transactions
like opening saving book, cash transferring to bank account. The method of conducting
those surveys was not efficient because it took more than 15 minute to complete one survey.
The most of time spent was on explainning to customers about every question to make sure
they understood the content of each question. We conducted about 6 – 7 surveys but only
one of them was completely finnished by customer who is a bank employee. In addition,
perceptions of almost customers were asked about service quality are simple as per their
opinion, bank with good service quality only has nice and polite employees, fast
transactions and nice branch areas while employee cum customer was interested in the list
of service quality criterias
Therefore, in order to increase response rate and to reduce the time spent for conducting
surveys, we have decided to consider employees as customers because they currently are
using the Techcombank products and services. Employee evaluations of service quality at
banks are aslo mentioned in researches of Allred (2001) and Berry et al. (1988).
Hard copies of 160 questionnaires were distributed to staffs of different departments
working in Techcombank headoffice in Ho Chi Minh City. 149 surveys were returned
within 2 days – a great number in short time is over author’s expectation. Four
questionnaires were rejected due to excessive missing data and thus, the total valid sample
size was restricted to 145.
Dataanalysis
Data input was done on Microsoft Excel 2013, after that data was imported into SPSS
version 20 in order to analyze data.
TheSamplecharacteristicsandbankingbehavior
The sample consists of 47 per cent male and 53 per cent female respondents. The majority
of the respondents (i.e. 57.24 per cent) belong to the age group of 30-39 years, followed by
the age group of 23-29 that constitute 35.86 per cent of total respondents. Most of the
respondents have been working for Techcombank above 1 year, 43.45% of them working

over 5 years, 21.38% of them staying with Techcombank over 3 years.


24

Work
Years
%
Work
Years
Male Female
From 18 to 29y From 30 to 39y From 40 to 49y From 18 to 29y From 30 to 39y From 40 to 49y From 50 to 59y
Count % Count % Count % Count % Count % Count % Count %
Under
1 year
11.72
%
4 2.76% 2 1.38% 0 0.0% 7 4.83% 4 2.76% 0 0.00% 0
0.00
%
From
1 to 3
year
23.45
%
7 4.83% 9 6.21% 0 0.0% 10 6.90% 7 4.83% 1 0.69% 0
0.00
%
From
3 to 5

year
21.38
%
5 3.45% 3 2.07% 0 0.0% 11 7.59% 11 7.59% 1 0.69% 0
0.00
%
Above
5 year
43.45
%
1 0.69% 9 6.21% 3 2.07% 7 4.83% 38
26.21
%
4 2.76% 1
0.69
%
Total
100%
17
11.72
%
23
15.86
%
3 2.07% 35
24.14
%
60
41.38
%

6 4.14% 1
0.69
%
29.66% 70.34%
Table 3. Gender and Working Experience in Techcombank
In addition to use current account product, 58.62% of staffs use saving products, while
33.08% of them having housing or installment loans (12.41% of them use housing loan and
20.67% of them use installment loan). However, almost products include 70.59% of saving
products, 83.33% of housing products and 77.33% are using by staffs who have been using
Techcombank products above 3 years (see Table 4). In the other hand, when we look take a
look on Table 4, it is found that above 60% of them have been working for Tehcombank
more than 3 years. In other words, staffs working in Techcombank above 3 years have better
customer experiences than others. (see in Table 5)
Product
Summary
Number of years using Techcombank’s products
Under 3
months
Under 6
months
Under 1 years
From 1 to 2
years
From 2 to 3
years
Above 3 years
Count % Count % Count % Count % Count % Count % Count %
Saving 85 58.62% 0 0.00% 1 1.18% 6 7.06% 9 10.59% 9 10.59% 60 70.59%
CreditCard 57 38.62% 0 0.00% 0 0.00% 2 3.51% 6 10.53% 10 17.54% 39 68.42%
Gold

CreditCard
35 24.14%
0 0.00% 1 2.86% 4 11.43% 5 14.29% 4 11.43% 21 60.00%
Platinum
CreditCard
19 13.10%
0 0.00% 0 0.00% 0 0.00% 4 21.05% 3 15.79% 12 63.16%
Current
Account
145 100%
3 2.07% 3 2.07% 12 8.28% 17 11.72% 22 15.17% 88 60.69%
House Loan 18 12.41% 0 0.00% 0 0.00% 0 0.00% 1 5.56% 2 11.11% 15 83.33%
Installment
Loan
30 20.69%
0 0.00% 1 3.33% 0 0.00% 1 3.33% 6 20.00% 22 73.33%
Auto Loan 1 58.62% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 1 100.00%
Total
390 266%

Table 4. Statistics of using Products with Techcombank

Number of working years in Techcombank
Under 1 year From 1 to 3 year From 3 to 5 year Above 5 year
Count % Count % Count % Count %
Number of
years using
Techcombank
Under 3
months

2.07% 3 2.07% 0 0.00% 0 0.00% 0 0.00%
Under 6 2.07% 2 1.38% 1 0.69% 0 0.00% 0 0.00%
25

Products
months
Under 1
years
8.28% 11 7.59% 1 0.69% 0 0.00% 0 0.00%
From 1
to 2
years
11.72% 0 0.00% 15 10.34% 2 1.38% 0 0.00%
From 2
to 3
years
15.17% 0 0.00% 15 10.34% 5 3.45% 2 1.38%
Above
3 years
60.69% 1 0.69% 2 1.38% 24 16.55% 61 42.07%
Total
100% 17 11.72% 34 23.45% 31 21.38% 63 43.45%

Table 5. Relationship working and customer experience with Techcombank
DevelopaservicequalitymodelbasedonCustomers’expectationaboutinstitutionsoffering
bankingservices

To determine the reliability of the scale of expected service, item analysis and the internal
consistency coefficients were estimated. Internal consistencies of the total scores were
assessed by use of Cronbach’s alpha coefficients. Cronbach’s alpha is computed in terms of

the average intercorrelations among the items measuring the concept.

The reliabilities for all the factors are calculated and presented in Table 6. As it is shown, all
reliabilities were adequate since the Cronbach’s alpha values for each were significantly
greater than the prescribed 0.7 thresholds. The values varied from 0.798 for convenience to
0.889 for competence showing that our SERVQUAL instruments are sufficiently reliable.

However, it is considered whether item woulde be removed if “Cronbach's Alpha if Item
deleted” are higher than Cronbach’s alpha, particularly, items include Reliability-Bank
Security, Responsiveness-Waiting time, Empathy-Individual attention,
 Convenience-ATM
Network need to be reviewed during testing SERVQUAL model with Factor analysis.

# Item
Scale Mean
if Item
Deleted
Scale
Variance if
Item Deleted
Corrected
Item-Total
Correlation
Cronbach's
Alpha if Item
Deleted
Cronbach's
Alpha
1
Tangibles-Bank

locations
20.75 9.720 .624 .871
0.881
2
Tangibles-Internal
bank area
20.71 9.653 .714 .858
3
Tangibles-Physical
facilities
20.67 9.465 .797 .846
4
Tangibles-Motorcycle 20.93 8.616 .741 .853
26

parking
5
Tangibles-
Professional
appearance
20.97 9.328 .722 .856
6
Tangibles-Marketing
materials
21.11 9.572 .585 .879
7
Reliability-Banking
system
12.96 4.366 .811 .837
0.889

8
Reliability-Bank
promise
13.14 4.435 .800 .841
9
Reliability-Bank new
information
13.25 4.232 .785 .848
10
Reliability-Bank
Security
12.89 5.262 .645 .897
11
Assurance-Staff
Attitude
8.55 2.178 .634 .814
0.829
12
Assurance-Staff
Knowlegde
8.77 1.797 .736 .713
13
Assurance-Staff work
Skill
8.58 1.904 .696 .753
14
Responsiveness-Staff
Complaint Skill
8.22 2.255 .705 .731
0.821

15
Responsiveness-
Contact Center
8.29 2.054 .725 .702
16
Responsiveness-
Waiting time
8.64 2.064 .610 .829
17
Empathy-Individual
attention
8.01 2.445 .555 .811
0.798
18
Empathy-Financial
Advising
8.03 2.189 .700 .670
19
Empathy-Customer
Care
8.20 1.881 .689 .678
20
Convenience-ATM
Network
8.49 2.424 .704 .884
0.880
21
Convenience-Website 8.59 2.114 .799 .801
22
Convenience-Internet

banking
8.43 2.232 .803 .798

Table 6. Cronbach’s alpha calculation
This study is based on the modified SERVQUAL model, which is assumed to contain six
dimensions with 22 statements each on perception as well as expectation. The factor
analysis has been used to test if the dataset exactly detect the dimensions specified
previously.
The sample size is chosen based upon the general guidelines for sample size that depends
upon the number of variables involved in the study. As the instrument used in this study has