Factors affecting the decision to choose to save money by individual client in nam viet commercial joint stock bank in ho chi minh city, viet nam

RESEARCH PROJECT
(BMBR5103)


Factors affecting the decision to choose to save
money by individual clients in Nam Viet Commercial
Joint Stock Bank in Ho Chi Minh City, Viet Nam






STUDENT’S FULL NAME : NGUYEN THY NGOC DUNG
STUDENT ID : CGSVN00014960
INTAKE : MBAOUM0313
ADVISOR’S NAME & TITLE : Assoc.Prof.Dr.NGUYEN PHAN




SEPTEMBER 2014


Advisor’s assessment

Advisor’s signature
ABSTRACT
Amid of the banks market have too much disturbance, the information about the scheme of the
bank restructuring, merger and consolidation, then the information on bad debts, limited
distribution of credit growth All factors affected the psychology of customers of the decision to
save money. The subject “Factors affecting the decision to choose to save money by individual
clients in Nam Viet Commercial Joint Stock Bank in Ho Chi Minh City, Viet Nam.” with the
aim of identifying the factors determining the selection of banks and the impact of these factors

to understand more clearly about the psychology of customer transactions in bank deposits.
Theoretical basis of the study of model based on the SERVQUAL measurement of service
quality (Parasuraman, Zeithaml and Berry, 1985) and previous studies to apply in time 2013. The
basic assumption of the measurement was that customers can evaluate a firm's service quality by
comparing their perceptions with their expectations.
The study was carried out in two steps as qualitative research and quantitative research. The
results analysis will show that factor of bank policies will affect to the most important decisions
made by customer’s choice when deciding to save money in Navibank, followed by the
sympathy factor, an ability to satisfy of the bank and all the variables are related in the same
direction with the decision of the customer’s choice.











ACKNOWLEDGEMENTS

A completed study would not be done without any assistance. Therefore, the author who
conducted this research gratefully gives acknowledgements to their support and motivation
during the time of doing this research as a requirement of completing my Master of Business
Administration.
First of all, I would like to express my endless thanks and gratefulness to my supervisor
Assoc.Prof.Dr.Nguyen Phan. His kindly support and continuous advises went through the
process of completion of my thesis. Without his motivation and instruction, the study would have

been impossible to be done effectively.
A part from doing this, I would like to state my thanks to Open University Malaysia in
collaboration with HUTECH University, academic lecturers and staff at HUTECH Institute of
International Education, where brings this program to Vietnam for us be able to joint such a
great program.
My special thanks approve to my parents for their endless love, care and have most assistances
and motivation me. I also would like to explain my thanks to my sister for her support and care
me all the time.
Finally, my deeply thanks come to all members in my Class K08A with their kindly support
during time I joint this program.
With Kindest Regards,



NGUYEN THY NGOC DUNG








LIST OF TABLES
Table 3.1: The Empathy’s Likert Scale……………………………………………………….32
Table 3.2: The Assurance’s Likert Scale…………………………………………………… 33
Table 3.3: The Reliability’s Likert scale………………………………………………………33
Table 3.4: The Tangible Facilities Likert scale……………………………………………….34
Table 3.5: The Responsiveness Likert scale………………………………………………… 35
Table 4.1: The Characteristics of the Study Sample…………………………………………42

Table 4.2: The Cronbach Alpha of the measuring scales…………………………………….44
Table 4.3: The KMO index of the measuring scale………………………………………… 45
Table 4.4: The Empathy Component Matrix…………………………………………………46
Table 4.5: The Assurance Component Matrix…………………………………… ……… 46
Table 4.6: The Reliability Component Matrix…………………………………… ……… 48
Table 4.7: The Tangible Facilities Component Matrix…………………………… ……….49
Table 4.8: The Responsiveness Component Matrix………………………………… …… 50







LIST OF FIGURES

Figure 2.1: The integrated Gaps model of service quality………………………………… 22
Figure 2.2: The 10 determinants of service quality……………………………………….….23
Figure 3.1: Research Process……………………………………………………………… 30
Figure 3.2: The originally planned research model………………………………………… 35
Figure 4.1: The Gender Structure Analysis…………………………… ………………… 38
Figure 4.2: The Age Structure…………………………………………………………………39
Figure 4.3: Qualification Structure……………………………………………………………40
Figure 4.4: The Income Structure…………………………………………………………… 41

CONTENTS
ABSTRACT 1
ACKNOWLEDGEMENTS 2
LIST OF TABLES 3
LIST OFIGURES 4
CHAPTER 1: DISERTAION ITRODUCTION 8
1. The Necessity of Research Topics: 10
1.2 Research Problem: 11
1.3 Questions of the Research: 11
1.4 Research Objectives: 12
1.5 Subjects and Scope Of Research: 12
1.6 Research Methodology: 12
1.7 Practical Implications of The Research: 13
1.8 Layout of The Dissertation: 13
CHAPTER 2: LITERATURE REVIEW AND THEORETICAL STUDY 15
2.1 Theoretical Foundations of The Savings Deposit’ Products: 15
2.2 Basic theoretical for services, banking services, consumer behavior and the measurement
model of service quality: 16
2.2.1 The concept of services: 17
2.2.2 Banking Services: 18
2.2.3 Consumer behavior and the bank selection:………………………………………… 18
2.2.3.1 Customer Behavior: 18
2.2.3.2 The bank selection of the customer: 21
2.2.4 The measurement model of service quality – SERVQUAL: 21
2.3 Previous research model: 25

2.4 Summary: 27
CHAPTER 3: RESARCH METHODOLOGY 28
3.1 Selection Methods: 28
3.2 Preliminary Research: 28
3.3 The Secondary Research: 29
3.4 Research sample dimension: 30
3.5 The concept studies, scales and the theory: 30
3.7 Data Collection: 34
3.8 The method of data analysis: 34
3.9 Summary: 35
CHAPTER 4: THE RESEARCH RESULTS ANALYSIS 36
4.1 Introduction: 36
4.2 Described Sample Statistical Analysis: 36
4.2.1 The Gender Structure Analysis: 36
4.2.2 The Age Structure Analysis: 37
4.2.3 The Qualification Structure Analysis: 37
4.2.4 The Income Structure Analysis: 38
4.3 The Characteristic of the Study Sample: 39
4.4 The analysis and assessment of customers on the factors affecting to choose theNavibank: 40
4.4.1 Assessment of the reliability scale: 41
4.4.2 The analysis of factors affecting decision to choose the Navibank: 41
4.4.3 Analysis on the factor measuring scale of the customer’s perception about the Empathy: 42
4.4.4 Analysis on the factor measuring scale of the customer’s perception about the Assurance:.
……………………………………………………………………………………………………46
4.4.5 Analysis on the factor measuring scale of the customer’s perception about the Reliability:.
……………………………………………………………………………………………………50
4.4.6 Analysis on the factor measuring scale of the customer’s perception about the Tangible
Faculties: 54
4.4.7 Analysis on the factor measuring scale of the customer’s perception about the
Responsiveness…………………………………… …………………………………… 58

4.5 Regression Analysis: 63
4.5.1 Regression models Development: 63
4.5.2 Evaluative appropriateness of the regression model: 64
4.5.3 Testing the appropriateness of the regression model: 65
4.5.4 The significance of the partial coefficients in the model: 65
4.5.5 Testing hypothesis: 66
4.6 Summary: 67
CHAPTER 5: CONCLUSION, LIMTAIONS AND RECOMENTDATIONS 70
5.1 Conclusions: 70
5.2 The several suggested polices recommendation: 70
5.2.1 The policy factors related to empathy: 70
5.2.2 The policy factors group related to bank policy: 72
5.2.3 Group policy factors related to the responsiveness: 72
5.3 The limitation of the thesis: 73
REFRENCE 74
APENDIX 1: THE RESARCH QUESTIONAIRES 75
APENDIXI: NDIVDUAL OPINONS QUESTIONAIRES 75


CHAPTER 1: DISSERTATION INTRODUCTION

1. The Necessity Of Research Topics:
Based on a reality survey of the behavioral of customer’s choice for savings deposits in the banks
as follows:
 The first case: The case of Ms. Nguyen Thi Thu Hue (District 3, Ho Chi Minh City) is a
typical; recently she went to the “T.” bank branch to withdraw the savings banks only by
raising interest rates at 6.8% per year to switch to another bank willing to pay 8% interest
for her. "The tough economic times, lower deposit rates to 1% of the difference is a
problem “Ms. Hue said.
 The second case: Ms. Tran Thi Hai, District 8, Ho Chi Minh who has a savings coming

due. Often, she will enter the capital and interest to continue forward, but this time she
quite hesitated. The problem is that Ms. Ha weigh while many banks have announced
they are classified on group 1-2 from the National Bank that meaning the healthy banks,
the credit growth in 2012 at a pretty. Then she's bank savings, the staff kept saying not
received official letters about this. As a result, she is quite disturbed that banks silent or
avoids questions about the grouping of credit growth.
 The third case: Ms. Nguyen Mai Lan Anh in Binh Thanh district, Ho Chi Minh City, said
that banks in the group that does not matter to me, because deposit rates are equal and
more importantly, she believe that the government will not let any banking collapse.
Therefore, the only problem is the attitude to serve the customer of the bank that will
makes the customer satisfy.
So, based on the above cases, we can find out the problems of the customer when they are so
weigh to decide which bank that they will choose to save their money. Furthermore, when
Vietnam joined the WTO, more and more customers have more choice of banks with 100%
foreign experience for hundreds of years with the services is more professional appearance, and
then will compete more aggressively. Therefore, the competitive challenges of the foreign banks
to domestic banks will be increasing. According to a recent survey by The United Nations
Development Program (UNDP, 2008), in collaboration with the Ministry of Planning and
Investment in 2008, with 42% of enterprises and 50% of people interviewed said that when
financial markets open, they will choose to borrow money in foreign banks rather than domestic
banks! Preliminary results of this study also indicate whether the banking market bustling with
the number of new banks and banking services to a few more years, but there have been plenty
of customers to participate in survey respondents had changed bank transactions, or use the
services of several banks at the same time.
Therefore, to build the remittance behavior of individual customers, the banks need more
information about the customer satisfaction as well as factors leading to the decision to select the
bank to save money, to be the basis of planning strategies to improve the efficiency of capital
mobilization.
Thus, there should be a study to determine the factors affecting the deposits of bank customers to
help answer the question: how to keep customers in an environment of increasingly fierce

competition?
So that, we always eager to learn customer expectations when they dealing in Nam Viet
Commercial Joint Stock Bank. What factors affecting Nam Viet Commercial Joint Stock Bank to
decide to save money and how to improve efficiency mobilization? This is why the subject of:
“Factors affecting the decision to choose to save money by individual clients in Nam Viet
Commercial Joint Stock Bank in Ho Chi Minh City, Viet Nam.”
1.2 Research Problem:
In the business of banking, the mobilization capital and activity is often the most important.
However, in recent years, the State Bank has set up a number of measures the bank handling
violations and monetary policies to curb inflation. Practical problems have a huge impact on
improving service quality, diversify products and expand its branch network, capacity and level
of bank officials.
In this situation, the research objective posed by this subject is analyzed factors affecting most
important to customer deposits at banks. Then, it is the appropriate solution to enhance
mobilization of Nam Viet Commercial Joint Stock Bank in a stable and sustainable demand for
capital operating an efficient manner.
1.3 Questions Of The Research:
In order to solve the problem posed research, the study was designed to find answers to the
following:
- What factors affect customer deposits at Nam Viet Commercial Joint Stock Bank?
- The factors that affect the customer's deposit, the factors most influence on the decision to
choose Nam Viet Commercial Joint Stock Bank savings deposits of customers every individual?
- There are differences between the various clients of gender, qualification, environmental work
and income affect banks decide whether or not?
- Nam Viet Commercial Joint Stock Bank should implement measures to increase mobilization
of deposits from individual customers?
1.4 Research Objectives:
Based on the basis of answers to research questions to clarify research issues, this topic aims to
achieve specific research objectives as follows:
- Analyze the factors that affect customer deposits at Nam Viet Commercial Joint Stock Bank.

- Find out the proposed solutions and policies to increase capital mobilization effectively with
low cost.
- Discover the difference in the bank choices to deposit of the customers affecting in gender,
qualifications, income and the environment.
1.5 Subjects And Scope Of Research:
Study subjects: the individual customer to deposit money in Nam Viet Commercial Joint Stock
Bank.
Scope of the Study: Nam Viet Commercial Joint Stock Bank, Ho Chi Minh City, Viet Nam.
1.6 Research Methodology:
This study was done in Nam Viet Commercial Joint Stock Bank through two steps:
(1) The preliminary studies using qualitative methods and,
(2) The secondary research method by using the quantitative method.
+ Preliminary research: the qualitative method to identify the factors that affect customer deposit
at Nam Viet Commercial Joint Stock Bank. The preliminary study was conducted through
discussion or interview duel 10 financial experts, the transaction manager or customer service
manager. Since then designed a questionnaire to interview customers with banking transactions.
+ Based on the above information, the secondary research conducted by quantitative methods,
using construction methods detailed questionnaire with 5-level Likert scale.
+ After quantitative research, analyze collected data and identify factors that influence
customers' deposits in Nam Viet Commercial Joint Stock Bank, a number of in-depth interviews
will be conducted to understand the causes and look receive objective factors influence, from
which conclusions and reasonable solution.
1.7 Practical Implications Of The Research:
The study provides a number of practical implications for managers, staff working in particular
Nam Viet Commercial Joint Stock Bank and across the whole system of Nam Viet Commercial
Joint Stock Bank. Specifically as follows:
 The research results help traders, who come into direct contact with customers to
better understand customer behavior, thereby improve ourselves to better serve
increasingly, this will help improve the bank's value in the eyes of their customers
and to promote more customer come to the banks.

 The results are also references to help the department related to the mobilization of
new solutions to meet the increasingly diverse needs of customers in order to improve
the efficiency of mobilization with the lowest cost.
 At the same time, the research results are also references to the Board of Directors
Nam Viet Commercial Joint Stock Bank proposed reasonable solutions to enhance
reputation. From that, will help customers comfortable when using the products and
services of the Nam Viet Commercial Joint Stock Bank.
1.8 Layout Of The Dissertation:
The Dissertation is divided into 05 chapters:
 Chapter 1: The Dissertation Introduction
Introduce the basis of the dissertation, research objectives, research questions, scope
and object of study, research methodology, and practical implications of the study and
structure of the dissertation.
 Chapter 2: Literature Review and Theoretical Study
Theoretical foundations includes the theory of savings, the theory of services,
banking services, consumer behavior and the measurement model of service quality.
 Chapter 3: Research Methodology
Based on theoretical modeling studies, this chapter will define the appropriate scale to
measure the factors determining the choice of bank savings deposits at Nam Viet
Commercial Joint Stock Bank. Presenting the research methods applied in the
dissertation, describes the sample selection methods, sample of size determination,
data collection methods and data analysis techniques.
 Chapter 4: The Research Results Analysis
Presentation of analysis results on the basis of the data that was done using SPSS
16.0 software, the model identified factors affecting the deposits of individual
customers using money product’s savings.
 Chapter 5: Conclusion, Recommendation, and Limitation of the Research
Presentation of the conclusions of the study results, some policy suggestions to make
to improve efficiency mobilization as well as the limitations outlined topics and
suggestions for further research.

CHAPTER 2: LITERATURE REVIEW AND THEORETICAL STUDY
So, in the Chapter 1 that presented an overview of the research topic. At Chapter 2, we will
presents the theoretical basis for savings deposits product and remittance behavior of individual
customers, the theory of banking services, consumer behavior and service quality model
“SERVQUAL” (Parasuraman, Zeithaml and Berry, 1985) .

2.1 Theoretical Foundations of The Savings Deposit’s Products:
According to Dr. Kieu M. N. (2007) , the author mentions that the Capital mobilization’s activity
is one of the major activities and most important of the Commercial Banks. This activity will
bring the capital to the banks and may perform other activities as providing credit and services to
the banking.
Dr. Kieu M. N. also mentions that the Capital mobilization through a deposit account is a form of
capital mobilization and brings the classic characteristics of individual commercial banks. Due to
the needs and dynamics of customer deposits are varied and different, to attract depositors,
commercial banks have designed and developed a variety of different deposit products.
However, with the research “Factors affecting the decision to choose to save money by
individual clients in Nam Viet Commercial Joint Stock Bank in Viet Nam.”, the research stops to

capital mobilization through business financing saving deposit.
Thus, let finding what is the “Saving Deposit” mean?
According to Dr. Kieu M. N.(2007) mentions that the Savings deposits are deposits of
individuals are sent into savings accounts, was confirmed on bankbook, the interest rate as
prescribed by organization whom take deposits and insured under the provisions of law on
deposit insurance.
Let’s talk more clearly, a savings deposit account is a type of bank account in which a person can
deposit his or her money and have it earn interest. The savings deposit account is usually limited
in several ways, including how many times a person can make transactions from the account, or
in some cases how many times a person can make a deposit into the account per month.
For example, Savings will often be deposited into a bank savings account where the funds will
earn a nominal amount of interest and will be insured in most cases. In the United States, bank
savings and checking accounts are insured by the Federal Deposit Insurance Corporation or
FDIC. Savings accounts in countries other than the United States carry different terms that may
even include different currency deposit options. Most major countries have their own versions of
deposit insurance to protect the Savings accounts of the customers of financial institutions.
Savings represent an important part of an individual’s, as well as a nation’s, basic assets.
In 2005, IPA investigators Ashraf N., Karlan D. and Yin W. designed the first formal
commitment savings product in collaboration with Green Bank of Caraga in the Philippines. The
SEED (Save, Earn, and Enjoy Deposits) account provided individuals with the opportunity to
voluntarily commit to restricting access to their savings. The terms of each commitment are
customized, and individuals select either a savings goal date or amount. Individuals made
continuous payments throughout their commitment period, and were restricted from withdrawing
funds until they reached their self-specified goal. Aside from this commitment feature, the SEED
account was identical to Green Bank’s normal savings account. Ashraf, Karlan and Yin
conducted a field experiment to test the effectiveness of the SEED account with a sample of
1,777 randomly selected Green Bank clients. Individuals who were offered the SEED account, as
well as individuals randomly assigned to a control group (which received the traditional savings
account), were surveyed once at baseline and then again one year later in order to measure
changes in savings, attitudes and household economic decisions. Researchers found an 81%

increase in savings among those clients who had opened a SEED account after one year
compared to the control group. These results suggest that formal commitment savings accounts
have an important role to play in the accumulation of assets among the world’s poor.
Term savings products: designed for individual customers or organizations have temporarily
idle cash to banks for the purpose of safe and profitable, but not necessarily used to plan deposits
in the future. For customers who choose this form of deposits, the safety objectives and
convenience is more important than profit target.
Recurring savings product: is savings products designed for individual customers and
organizations wishing to send money for the purpose of safety, profitability and establish plans
to use the money in the future. For major customers of this type of deposit is the individual wants
a steady income and regular expenditure to meet monthly or quarterly. Most customers prefer to
choose this form of deposits that are workers, retired officers. Their goal is important when
choosing this form of deposit income is recurring. Therefore, interest rates play an important role
to attract the customers.
2.2 Basis theoretical for services, banking services, consumer behavior and the
measurement model of service quality:
2.2.1 The concept of services:
In economics, a service is an intangible commodity. That is, services are an example of
intangible economic goods.
According to Philip Kotler (2004): the service is the results of actions that a party may give the
other party and mostly intangible and does not result in ownership of something. Its products
may or may not be associated with the physical product.
The generic clear-cut and complete, concise and consistent definition of the service term reads as
follows:
A service is a set of one time consumable and perishable benefits
- Delivered from the accountable service provider, mostly in close coactions with his
internal and external service suppliers,
- Effectuated by distinct functions of technical systems and by distinct activities of
individuals, respectively,
- Commissioned according to the needs of his service consumers by the service customer

from the accountable service provider,
- Rendered individually to an authorized service consumer at his/her dedicated trigger,
- And, finally, consumed and utilized by the triggering service consumer for executing
his/her upcoming business activity or private activity .
According to Wikipedia: In economics, the services are understood, which to be similar likely a
goods, but it is immaterial. There are products in favor of organic products and the products of
swing of products and services, but most of the products in the range between product and
service goods. The service has the following characteristics:
- Simultaneity: production and consumption occur simultaneously services.
- Inseparability: service delivery processes as well as target sales service, so cannot hide
the mistakes of the service.
- Variability: is almost impossible to provide services exactly alike.
- Intangibility: products and services are being executed. Customer may not see, taste,
touch, and smell before buying.
- Perish-ability: The services cannot storage, which cannot check the quality before
supplying or supply, only right way from the beginning and do the right thing all the time.
2.2.2 Banking Services:
By law the credit institutions in Section 1 and Section 7 of Article 20, dated 20/09/2010, Viet
Nam: banking services that includes 3 content: accepting deposits, providing credit and payment
services.
According to the State Bank of Viet Nam, the foreign banks can provide various services about
1,000 customers, while domestic banks only supply about 100 small-scale services and facilities
utility is not high.
Banking services are provided currently popular include:
- Deposit service: the service pack is capital mobilization as savings deposits and demand
deposits are mainly.
- Services Loans (Credit): is lending services, including service packs for bank loans to
generate income for the bank and make money for the economy.
- Payment Services and abroad: including service packs for customers wishing to pay in
the contract of sale or abroad, billing, collection or guarantee to the beneficiary and so on.

- Money Transfer Service: Currently, this service is offered by most of the commercial
banks, in the form of remittance from abroad through Western Union to Vietnam, remittances
and domestic transfers.
- Card Services: Banks are supplied in recent years as a means of replacing cash and credit
payments. This is a service that most banks are targeted as a main point service.
- The other banking services such as trust services, financial consulting, account
management stock investors Many banks have also been provided, but not yet in common use
as a result of the survey sample; there are many other products and services that are common in
the world, such as asset management for high-income individuals, safe management, it has not
been provided in our banking market.
2.2.3 Consumer behavior and the bank selection:
2.2.3.1 Customer Behavior:

Before understanding consumer behavior let us first go through few more terminologies:
 Who is a Consumer? Any individual who purchases goods and services from the
market for his/her end-use is called a consumer. In simpler words a consumer is one who
consumes goods and services available in the market. Take an example - Tom might
purchase a tricycle for his son or Mike might buy a shirt for himself. In the above
examples, both Tom and Mike are consumers.
 What is consumer Interest? Every customer shows inclination towards
particular products and services. Consumer interest is nothing but willingness of
consumers to purchase products and services as per their taste, need and of course pocket.
Let’s go through the following example:
Both Maria and Sandra went to the nearby shopping mall to buy dresses for themselves. The
store manager showed them the best dresses available with him. Maria immediately purchased
two dresses but Sandra returned home empty handed. The dresses were little too expensive for
Sandra and she preferred simple and subtle designs as compared to designer wears available at
the store. In the above example Sandra and Maria had similar requirements but there was a huge
difference in their taste, mind set and ability to spend.
 What is Consumer Behavior? Consumer Behavior is a branch which deals with

the various stages a consumer goes through before purchasing products or services for his
end use.
There are in fact several factors which influence buying decision of a consumer ranging from
psychological, social, and economic and so on. The study of consumer behaviour explains as to:
- Why and why not a consumer buys a product?
- When a consumer buys a product?
- How a consumer buys a product?
Thus, there are many different definitions of consumer behavior. Standing on the field of view
and different subjects, will be have different perspectives on consumer behavior. For example,
let’s point to the Sales dimension; they will look at consumer behavior point of sale. While in the
promoting dimension - the communication is recognized consumer behavior plays active role in
the promotion and communication.
According to the American Marketing Association, "consumer behavior is the interaction
between these factors stimulates awareness of the environment and human behavior through
human interaction that change lives them."
According to Jim Blythe (2008), "Consumer behavior is the starting point for all marketing
planning and this book provides the necessary insights to understand what makes people buy,
and buy again."
According to Ray Wright (2006), "Customers' behaviors are actions directly related to obtaining
and Consumer Behavior is more relevant than ever for today’s business."
According to Rebecca Haynes and Don O'Dougherty (2007), "Consumer behavior is the way that
consumer act or behave when looking for, buying and using the products. When the businesses
want to sell the products to the consumers, they look for way to find out how consumers are
likely to behave, and why they art in this way."
Consumer behavior is the study of individuals, groups, or organizations and the processes they
use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and
the impacts that these processes have on the consumer and society. It blends elements from
psychology, sociology, social anthropology and economics. It attempts to understand the
decision-making processes of buyers, both individually and in groups. It studies characteristics of
individual consumers such as demographics and behavioral variables in an attempt to understand

people's wants. It also tries to assess influences on the consumer from groups such as family,
friends, reference groups, and society in general.
From the above definition, we can understand simple "customer behavior including thinking and
feeling that people have and the actions they perform in the process of shopping and consumer
banking products services ". Factors such as feedback from other consumers, information on
product quality - service, price, packaging, appearance products, promotional activities,
promotions and so on, that are can affect feeling, thoughts and behaviors of customers.
2.2.3.2 The bank selection of the customer:
According to Goulrou Abdollahi, 2008, when customers need to choose a bank transaction, they
will compare them between the banks. Selection decisions are based on the level of form
carefully when considering options, and customers feel about the different banks. Eventually,
they will find a bank like the best private opinion. For information about the bank convinced that
they collected before going to decide that they will arise the interesting psychological. So they
will loyal to the bank that they chose.
2.2.4 The measurement model of service quality – SERVQUAL:
According to Parasuraman et al is considered the first to study the quality of service in a specific
and detailed in the marketing arena with the introduction of model 5 gap in quality:
The key point for each gap can be summarized as follow:
- Customer gap: the difference between customer expectation and perceptions - the
services quality gap.
- Gap 1: the difference between what customer expected and what management.
- Gap 2: the difference between management's perceptions of customer expectation and
translation of those perceptions into the service quality specification and designs.
- Gap 3: the difference between specification or standards of service quality and the actual
service delivered to the customer.
- Gap 4: the difference between services delivered to customer and the promise of the firm
to customer about its service quality.

Figure 2.1: The integrated Gaps model of service quality
Applications of the Gaps Model:
First of all the model clearly determines the two different types of gaps in service marketing,
namely the customer gap and the provider gaps. The latter is considered as internal gaps within a
service firm. This model really views the services as a structured, integrated model which
connects external customers to internal services between the different functions in a service
organization. Important applications of the model are as follows:




Figure 2.2: The 10 determinants of service quality
Therefore, the researchers made SERVQUAL scale consists of 5 components with 20 observed
variables, specific components as follows:
1. Tangibles: Physical facilities, equipment and appearance of personnel.
+ The company is equipped with modern equipment
+ The company has been eye-catching layout
+ Employees companies look neat and elegant
+ Documents relating to the product, such as leaflets and all the descriptions with attractive
2. Reliability: Ability to perform the promised service dependably and accurately.
+ When companies promise to do something in particular on time or not?
+ When you encounter obstacles, companies are really interested in solving this problem?
+ The company has made the right service in the first time
+ The company offers its services on time committed
+ The company has focused on working and not to make errors in the process?

3. Responsiveness: Willingness to help customers and provide prompt service.
+ The company's employees have to know exactly what the service is done
+ Employees of the company have made a quick service
+ Employees of the company are always ready to help you
+ Company staff have ever so busy that they did not meet the requirements
4. Assurance (including competence, courtesy, credibility and security): Knowledge and
courtesy of employees and their ability to inspire trust and confidence.
+ The behavior of employees of the company made you trust or not?
+ Staff of the company is polite and welcoming with you
+ Company staff has expert knowledge to answer your questions
5. Empathy (including access, communication, understanding the customer): Caring and
individualized attention that the firm provides to its customers.
+ The company always pays special attention to you.
+ The company has staff that cares about you
+ The company takes your benefit that is their mind
+ Company staff understands your needs
+ Company working on the convenient time
In fact, SERVQUAL measure includes three segments. First two segments, each segment is 22
observed variables measuring the quality of service that customers expect and perceive reality.
The variables used 7 point Likert scale. Difference (except for the expected sense) denotes
evaluation of service quality. This measurement model is called non-assert (disconfirmation
model). The 3rd segment of customer requirements assessment of five key components.
After much testing and research applications, SERVQUAL is recognized as a valid scale theory
and practice. However, there is still much debated, criticized, questioned this scale, especially in
terms of generality and quality measurement effect. One thing that can be seen is the
SERVQUAL measurement procedures rather lengthy. Thus, emerged a variant of SERVQUAL
is SERVPERF.
This scale was Cronin & Taylor, 1992, the SERVPERF led by Thongsamak, 2001 introduced,
determine service quality by measuring only perceived quality of service (instead of measuring
the perceived quality and expectations as SERVQUAL ). The two men said that service quality is

best reflected by the perceived quality without quality expectations as well as evaluating the
weight of the 5 components.
Note that, due to origin SERVQUAL scale and components of observed variables keeps
SERVPERF scale as SERVQUAL. This measurement model is called the perception model.
Both disconfirmation model and perception model comments are the following research using. It
is worth mentioning that the results of the study showed that hard to conclude that the model is
not correct or even more accurate.
2.3 Previous research model:
There have been many research and application of models of service quality Parasusaman and
colleagues to measure service quality, customer satisfaction. The research has practical
significance to help enterprises and suppliers to better understand the quality of services to better
serve our customers in the market economy.