Nghiên cứu mối quan hệ giữa chất lượng dịch vụ ngân hàng điện tử với mức độ thỏa mãn và mức độ trung thành của khách hàng ở việt namastract

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INTRODUCTION
1. Necessity of the topic
The development of information technology in banking has remarkably
changed business strategies of commercial banks. Instead of supplying traditional
banking services, commercial banks has been taking advantage of information
technology, especially internet, to provide customers with modern banking services
(hereinafter referred to as e-banking).
E-banking services bringvariousbenefits to banks such as decrease in
number of banking staff and branches, and increase in number of transactions as
well, thereby, banking cost will slump whereas profit will rocket. For customers,
e-banking services help them to rapidly and conveniently make transactions, and
their travelling time and transaction cost can be saved as a result.
Thanks to a numberof benefits brought by e-banking services, commercial
banks in Vietnam have been proactively investing in electronic infrastructure
system to compete in this sector, however, they have not met higher and higher
demand of customers and failed to satisfy customers as well as get loyal
customers.
On the other hands, to well compete in e-banking sector, banks should
understand criteria used by customers to assess e-banking service quality and
then make solutions to improve their service quality and customer satisfaction.
In order to do this, it is vital to develop a research model to determine the
relationship among assessment criteria fore-banking service quality, customer
satisfaction and customer loyalty affected by other intermediate factors
(switching cost, customer trust, etc.) as well as to make orientation for
competitive strategies of the banks.
Because of the above reasons, the topic named “Research on the
relationship among e-banking service quality, customer satisfaction and
customer loyalty in Vietnam” is chosen as research topic of the thesis.
1.2. Research objectives
- To research an overview of e-banking service quality, customer

satisfaction, customer loyalty, switching cost, customer trust and the relationship
among variables.
- To develop a research model on the relationship among e-banking service
quality, customer satisfaction and customer loyalty affected by intermediate
factors including switching cost and customer trust in e-banking sector in
Vietnam.
- To test a hypothesis model to determine the relationship among e-banking
service quality, customer satisfaction and customer loyalty in commercial banks
in Vietnam.
- To propose some solutions for commercial banks in Vietnam to improve ebanking service quality based on the research result on the relationship among ebanking service quality, customer satisfaction and customer loyalty.

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1.3. Research questions
Based on research objectives, research questions include:
(1) Is there a relationship between overall e-banking service quality and ebanking service quality?
(2) Is there a relationship between overall e-banking service quality and
electronic information system quality?
(3) Is there a relationship between overall e-banking service quality and
banking service product quality?
(4) Is there a relationship between customer satisfaction and overall ebanking service?
(5) Is there a relationship between customer loyalty and customer
satisfaction in e-banking service sector?
(6) Does switching cost affect the relationship between customer
satisfaction and customer loyalty in e-banking service sector?
(7) Does customer trust affect the relationship between customer
satisfaction and customer loyalty in e-banking service sector?
1.3. Research subjects and scope
- Research subjects: the relationship among e-banking service quality,
customer satisfaction and customer loyalty. Impacts of switching cost and
customer trust on this relationship.

- Research scope: in commercial banks of Vietnam, including state-owned
commercial banks, private joint stock commercial banks and foreign commercial
banks in Vietnam. Research data is collected from customers of commercial
banks in Vietnam.
1.4. Research methodology
• Research methodology:
- Research methodology in this thesis is the combination of dialectical
materialism and historical materialism.
• Research methods:
- Statistical and comparative methods;
- Synthetic and analytical methods;
- Regressive and correlative methods.
1.5. Thesis content
Besides introduction, conclusion, list of reference documents, list of figures
and appendix, the thesis is divided into five chapters:
Chapter 1: Overview of the research issues
Chapter 2: Rationale
Chapter 3: Research methods
Chapter 4: Research results
Chapter 5: Some conclusions, proposals and further research directions
1.6. New contributions of the thesis
• Academic and theoretical contributions
Based on a general research of over 170 related documents in e-banking


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service quality sector, the thesis has made new academic contributions as

follows:
(1) Development of a new and comprehensive structural model to explain the
relationship amongservice quality, customer satisfaction and customer loyalty in ebanking sector in Vietnam. The previous works mainly focused on pair relationship.
(2) Extended research of two intermediate variables including bank
switching cost and customer trust to consider their impacts on the relationship
between customer satisfaction and customer loyalty.
(3) The thesis states a positive and close relationship between overall ebanking service quality and customer satisfaction and between customer
satisfaction and customer loyalty. However, unlike previous works, in the
context of e-banking in Vietnam, intermediate factors such as switching cost and
customer trust are stated to have no impacts.
• New proposals drawn from research results
(4) Descriptive statistics result shows that e-banking service users in
Vietnam are young and highly qualified (higher education level) with good
income. Thus, marketing strategies of banks should aim at such potential
customers.
(5) The research result shows that overall e-banking service quality has a
positive correlation with online information system quality and banking service
product quality and there is no basis to conclude that there is a correlation
between overall e-banking service quality and online customer service quality.
Thus, it is proposed that in order to improve overall e-banking service quality,
banks should focus on strongly investing enhancing information system quality
and developing new products to meet customers’ demands.
(6) Customer satisfaction has a very strong positive correlation with overall
e-banking service quality and customer loyalty has a very strong positive with
customer satisfaction as well. Thus, to get loyal customers, marketing strategies
of banks should aim at customer satisfaction by enhancing service quality.
(7) Intermediate variables including switching cost and customer trust have
no impacts on the relationship between customer satisfaction and customer
loyalty in e-banking sector in Vietnam.
(8) Based on the research result, the thesis makes some proposals on

business strategies to commercial banks in e-banking sector.
CHAPTER 1
OVERVIEW OF THE RESEARCH ISSUES
1.1. Situation of researches in the world
So far, there have been some research works in the world on customer service
quality, customer satisfaction and customer loyalty. Such works focus on
developing an assessment model of customer service quality, the relationship
among service quality, customer satisfaction and customer loyalty, developing
assessment criteria and measurement scale as well as using econometric methods to
test the relationship among variables.

Gronroos (1984,1990)introduced a service quality model to research
customer feelings based on three basic factors including distinction of
functional quality (serving manners such as behaviors and acts of staff to
customers) and technical quality (serving media such as computer system,
technical and technological solutions); image played the most important part
in service supply enterprises;overall feeling about quality was a mathematic
function of customers’ assessment of service quality and difference between
such assessment and their service expectations. The author generalized as
follows:
Service quality = Technical quality + Functional quality
Parasuraman et al. (1985, 1988) introduced a service quality measurement
model (called as SERVQUAL). SERVQUAL model was developed based on the
concept that service quality was the comparison between expected value and
experienced value of customers. According to the author,
Service quality = Experienced value - Expected value
Cronin & Taylor (1994) proposed a SERVEPERF model to assess service
quality based on experimental research result in advertising industry in Australia
and stated that this model was better than SERVQUAL model of Parasuraman.
However, this is still in argument because such model result may vary depending

on research contexts in research.
Besides, there are some research works of other authors mentioning
impacts of service quality on customer satisfaction and customer loyalty. Some
works are in industries other than banking such as mobile information,
advertising, tourism, etc.(Oliver, R.L 1993; Zeithaml, V.A., A. Parasuraman &
A. Malhotra, 2001; Shankar, V., Smith, K., &Rangaswamy, A., 2003; Ting,
D.H, 2004).
Some researches are conducted in traditional banking context where direct
contact between customers and banking staff is preferred (such asBloemer, J.,
Ruyter, K.,& Peeters, P, 1998; Caruana, A 2002; Jamal, A & K. Naser, 2002;
Baumann, C.S. Burton & G. Elliott, 2005; Ehigie, B.O, 2006; Calik and Balta,
2006).
Moreover, a few researches are conducted in e-banking context where the
first distribution and contact channel are not via direct human contact (Jun &
Cai, 2001; Broderick,A.J & S. Vachirapornpuk, 2002; Rotchanakitumnuai, S &
M. Speece (2003); Jun, M., Z. Yang & D.S. Kim, 2004; Veloutsou, C., S.
Daskou & A. Daskou, 2004; Jaruwachirathanakul, B & D. Fink (2005); Siu,
N.Y.M & J.C.W. Mou, 2005; Pikkarainen, K., T. Pikkarainen., H. Karjaluoto &
S. Pahnila, 2006; Maenpaa, 2006)
1.2. Situation of researches in Vietnam
So far in Vietnam, there have been some research works on service quality,
customer satisfaction and customer loyalty as well as the relationship among
variables. Such researches have chosen assessment model, determined
assessment criteria of service quality, customer satisfaction and loyalty; used


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econometric methods to test the relationship among variables, typically research
of Nguyen Thi Mai Trang (2006) on service quality, customer satisfaction and
customer loyalty in supermarkets in Ho Chi Minh City; research of Nguyen Huy
Phong and Pham Ngoc Thuy (2007) on comparison of SERVQUAL
(Parasuraman, 1985) and SERVPERF (Cronin and Taylor, 1997) in retail
supermarkets of Vietnam; research of Nguyen Thanh Cong and Pham Ngoc
Thuy (2007) on factors affecting customer loyalty to cell phone brands; research
of Nguyen Thi Phuong Cham (2008) on comparison of SERVQUAL and
Gronroos on service quality and customer satisfaction to select the best model
for Vietnam; research of Nguyen Thi Mai Trang and Tran Xuan Thu Huong
(2010) on library service quality and comparison of functional/technical quality
model and SERVQUAL; research of Nguyen Duy Thanh and Cao Hao Thi
(2011) on e-banking acceptance and use model in Vietnam; research of Le The
Gioi and PhD. Le Van Huy (2012) on the relationship among service quality,
customer satisfaction and customer loyalty in banking sector; research of Le Thi
Tuyet Trinh (2012) on customer satisfaction with Viettel mobile
telecommunication services in Binh Dinh; research of Pham Van Tuan (2014)
on impacts of customer satisfaction on customer loyalty and repeated purchasing
behavior of customers in garment industry, etc.
1.3. Research gaps and research issues
After studying research works in the world and in Vietnam, there are some
research gaps to be researched as follows:
- There has been no thesis comprehensively researching the relationship
among service quality, customer satisfaction and customer loyalty in e-banking
sector. The previous researches in Vietnam only mention the relationship
between service quality and customer satisfaction or between service quality and
customer loyalty. Such researches are not in banking sector (mobile information,
tourism, etc.) or in traditional banking sector other than e-banking sector (retail
banking service). Moreover, researches in e-banking sector focus on factors
affecting the model adoption instead of the relationship among service quality,

customer satisfaction and customer loyalty. There are some researches on the
relationship amongservice quality, customer satisfaction and customer loyalty in
traditional banking sector but they fail to consider impacts of intermediate
factors such as switching cost and customer trust on the relationship among
variables.
- Previous researches have not developed an appropriate theoretical model
to explain the relationship among e-banking service quality, customer
satisfaction and customer loyalty in Vietnam (with impacts of intermediate
factors).
- Analysis methods used in previous researches are limited and the most
commonly used method islinear regression to test relationships and some researches
use Structural Equation Model (SEM) but they fail to consider impacts of
intermediate variables on relationships due to limited tools.

Because of such research gaps, the topic named “Research on the
relationship among e-banking service quality, customer satisfaction and
customer loyalty in Vietnam” is chosen as the research topic of the thesis.
CHAPTER 2
RATIONALE
2.1. Electronic commerce
2.1.1. Definition of electronic commerce
There are various definitions of electronic commerce (e-commerce).
According to World Trade Organization (WTO), “e-commerce includes
production, advertisement, sales, distribution and payment of goods purchased
and sold on the Internet but with tangible deliverables, including delivered
goods and digital information via Internet.”
According to Electronic Commerce Steering Group of Asia-Pacific
Economic Cooperation (APEC), "e-commerce relates to commercial transaction
of goods and services conducted among groups (individuals) electronically via
Internet-based systems.”

According to European Commission, “e-commerce can be generally
defined as purchase, sales and exchange of goods or services among enterprises,
families, individuals and private organizations by electronic transactions via
Internet or intermediate computer networks (online communication
information). This term includes order and translation via computer network,
however, final payment and transport of goods and services may be performed
online or manual.”
Zwass (1996) defined e-commerce as business information sharing,
relationship maintenance and transaction making via Internet-based devices.
According to Turban et al. (2000), e-commerce isa process of purchase, sale,
transport and exchange of products, services and information via computer
network including Internet. Jelassi and Enders (2004) defined e-commerce as
the settlement of transaction problems, product sales and other online services.
Based on the above definitions, we can seethat e-commerce definitions are
used in both broad and narrow meaning, including Internet use for electronic
communication and information exchange of products and services. However, ecommerce also includes business transactions related to order and payment via
Internet (Lin, 2003).
2.2. E-banking service
2.2.1. Definition of e-banking service
The State Bank of Vietnam defines e-banking service as modern and multifunctional banking products and services rapidly distributed to wholesale and
retail customers (online, 24 hours per day and seven days per week, anywhere
atanytime) via distribution channels (Internet and other terminal access
equipment such as computers, ATM, POS, landline telephone, cell phones, etc.)
Thus, it can be understood that e-banking services are banking services


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supplied via electronic media and telecommunication network.
2.2.2. Benefits of e-banking services
For banks: E-banking services create a new distribution channel for
banking services.
For customers:Using e-banking services with electronic media connected
to telecommunication network enable customers to make their transactions
anywhere and anytime.
For society:E-banking services create a brand-new operation method and
contribute to promoting economic activities, trade, services and tourism as well as
facilitate the expansion of economic and commercial cooperation with the region and
the world.
2.2.3. Distribution channels of e-banking services
Nowadays, popular distribution channels of e-banking services include:
Internet banking
Home banking
Phone banking
Mobile banking/SMS banking
Call center
2.2.4. Electronic payment instruments
To make electronic transactions, various payment instruments are used
such as:
Digital payment
Digital cheque
Stored value smart card
2.3. E-banking service quality
2.3.1. Service quality
There are various definitions of service quality by researchers such as
definitions of European scholars (Gronroos 1982, 1984; Lehtinen & Lehtinen,
1982) and viewpoints of American scholars (Parasuraman et al., 1985, 1988).
According to Gronroos (1982, 1984), service quality must include three

aspects including technology quality (technical) and performance quality
(functional) and impacts of company image.
Service quality = Technical quality + Functional quality
According to Parasuraman et al. (1985), service quality is the comparison
between expected value and experienced value of customers and the comparison
can be shown in the following formula:
Service quality = Experienced value - Expected value
According to Zeithaml et al. (2002), e-service quality may be considered as
a website to make purchase, sale and receipt of products and services more
effective and convenient. According to this definition, service is comprehensive
and includes pre-electronic services and post-electronic services.
2.3.2. E-banking service quality

Despite the importance of assessment criteria of e-banking service quality,
there is only a few documents includingand studying typical characteristics of ebanking service quality. Such characteristics are mentioned in researches of
Jun&Cai(2001); Polatoglu&Ekin(2001); Flavian, Tores&Guinaliu(2004);
Jayawardhena (2004); Yang and Fang (2004); Bauer &Hammerschmidt(2005);
Siu&Mou(2005);Maenpaa(2006); Pikkarainen et al. (2006), etc.
Within research scope of this thesis, the author uses the definition of
overall e-banking service quality (Jun&Cai, 2001; Yang et al., 2004). This
definition generally assesses e-banking service quality based on three aspects
including online customer service quality measured in availability, reliability,
satisfaction and understanding (Jun&Cai, 2001); online information system
quality (Jun & Cai, 2001) measured in ease of use, accuracy, confidentiality,
contents and appearance; banking service product quality (the number of
services, additional services, free utilities, necessary functions for customers,
service characteristics that customers need) (Jun&Cai, 2001, Yang et al., 2004).
2.4. Customer satisfaction
Satisfaction is a customer reaction when their demands are met (Oliver,
1993). It is also a customer reaction when there is a difference between their

expectations and experience after using products and services (Tse & Wilton,
1988). Satisfaction is a personal feeling such as pleasure or disappointment
resulting from comparing perceived performance(or outcome)from product in
relation to his or her expectations (Kotler, 2000). Customer satisfaction is a
psychological process of assessing perceived outcome in comparison with their
expectations (Egan, 2004).
According to Parasuraman et al. (2005), there are some differences
between service quality and customer satisfaction and the main difference is
causal issue. According to Zeithalm (2011) [147], customer satisfaction is
affected by many factors including service quality, product quality, situation,
price and personal factors.
In general, “Customer satisfaction is an emotional state that their
demands and expectations of product and service values/benefits are met at a
lower, equal or higher level than their expectations and itresults in customer
loyalty and repeated product and service purchase”.
2.5. Customer loyalty
There are three main approaches to research customer loyalty including
behavioral approach, attitudinal approach and general approach. The
combinationapproach includes both behavior and attitude variables to make a
separate definition of customer loyalty.
“Behavioral loyalty” is mainly shown by the number of purchased goods,
purchase frequency and brand switching (Allen and Meyer, 1990; Oliver, 1993).
“Attitudinal loyalty” is the combination of purchase favorites and priority
of customers to determineloyalty level (Egan, 2004). Loyal customers
with“attitudinal loyalty” rarely accept negative information on brand in


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comparison with other customers (Ahluwali et al., 1999), have a few motives to
search for other alternative services even they are extremely disappointed (Dick

and Basu, 2001) and tend to rapidly and positively advertise good features of
service via oral communication as well as use additional services and accept
reasonable price (Gremler and Brown, 1999).
Thus, loyalty is a definition which can be approached and shown in
various ways. However, in this thesis, the author chooses the
combinationapproach which includesboth behavioral and attitudinal loyalty.
Accordingly, loyal customers tend to keep on using products and services
(repeated purchase), commit to prioritizing selection of products and services
and introduce products and services to other people (oral communication).
2.6. Research model
2.6.1 Research model
Because some researches have tested the relationship among
decisivefactors of e-baking service quality, overall e-banking service quality,
customer satisfaction, trust, switching cost and loyalty, in order to handle
research gaps, this research proposes some hypotheses, in which, the above
definitions are integrated in the context of Vietnamese banking system. A
research model of the relationship among the above definitions is developed as
follows:

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Customer trust
Online customer
service quality
H1+
H2+

H6+
Overall ebanking service
quality

Information system
quality

H4+

H5+

Customer

Customer loyalty

satisfaction
H7+

H3+
Banking service

Switching cost

product quality

Figure 2.1: Research model
2.6.2. Research hypotheses
Based on a general research of documents on e-service quality, customer
satisfaction and customer loyalty, some hypotheses are developed in the context
of Vietnamese banking system:
Hypothesis 1 (H1): Online customer service quality and overall e-banking
service quality have a positive correlation.
Hypothesis 2 (H2): Online information system quality and overall ebanking service quality have a positive correlation.

Hypothesis 3 (H3): Banking service product quality and overall e-banking
service quality have a positive correlation.
Hypothesis 4 (H4): Overall e-banking service quality and customer
satisfaction have a positive correlation.
Hypothesis 5 (H5): Customer satisfaction and customer loyalty have a
positive correlation.
Hypothesis 6 (H6): Switching cost has an impact on the relationship
between customer satisfaction and customer loyalty.
Hypothesis 7 (H7): Customer trust has an impact on the relationship
between customer satisfaction and customer loyalty.
CHAPTER 3
RESEARCH METHODS
3.1. Research design
3.1.1. Research steps
The research is performed via the following specific steps:
Step 1: Generally research and develop model and system of research
hypotheses.
Step 2: Develop questionnaire for data collection.
Step 3: Run a measurement model to assess reliability and validity of
measurement scale. In order to assess reliability and validity of measurement


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scale, the thesis uses Cronbach’s Alpha coefficients, composite reliability and
average variance extracted (AVE).
Step 4: RunStructural Equation Model (SEM) to test hypotheses in
theoretical model. In order to test theoretical model, the author develops three
alternative structural models and selects the best model based on model running
result.
Step 5: Summarize research results based on model test result

Step 6: Conclude and propose solutions.
3.1.2. Research population and samples
In order to collect research data, the thesis uses questionnaires.
Questionnaires are sent to personal customers of commercial banks in large
cities of Vietnam, both in hard and soft copies. The number of issued
questionnaire is 550 and the number of collected questionnaire is 511 (the
number of observations is 10 times more than the number of variables).
3.1.3. Measurement scale
3.1.3.1. Measurement scale development
The thesis uses 7-point Likert scale, “1= strongly disagree, 2= disagree, 3=
slightly disagree, 4= neither agree nor disagree, 5= slightly agree, 6= agree, 7=
strongly agree”. Based on the research objectives after general research, there
are eight latent variables put into the research model including Online customer
service quality, Online information system quality, Banking service product
quality, Overall e-banking service quality, Customer satisfaction, Customer
loyalty, Switching cost and Customer trust.
* Online customer service quality includes four components such as
tangible, reliability, responsivenessand understanding (Yan et al., 2004).
Tangibleis measured bythree observed variables, reliability is measured bythree
observed variables, responsivenessis measured by two observed variables and
empathyis measured by four observed variables.
ONLINE CUSTOMER SERVICE QUALITY
Code
Tangible
T_1 Banks’ websites supply customers with a lot of valuede-banking information
T_2 Searching for e-banking information on banks’ websites is simple
T_3 Banks’ websites are attractive
Reliability
Banks always fulfill their responsibilities in e-banking transactions with
R_1 customers

R_2 E-banking transactions are always made properly
In case of problems in e-banking transactions of customer, banks strictly
R_3 handle such problems
Responsiveness
Res_ Bank staff supply customers with information of exact time that e-banking
1
services requested by customers are performed.
Res_ Bank staff help customers rapidly complete e-banking transactions

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2
Understanding
Bank staff consider customer benefits as a top priority in e-banking
E_1 transactions
Bank staff understand specific demands of customers in e-banking
E_2 transactions
Bank staff pay attention to issues related to customers in e-banking
E_3 transactions
E_4 Customer support hotline of banks is very useful
* Online information system quality includes three components such as
ease of use (access), accuracy and safety. Ease of use is measured byfive
observed variables, accuracy is measured bythree observed variables and safety
is measured by four observed variables.
ONLINE INFORMATION SYSTEM QUALITY
Code
Ease of access
Information arrangement on banks’ websites helps customers simply
EU_1
search for information
EU_2 Access to e-banking accounts is simple

EU_3 Using banks’ websites in e-banking transactions requires much effort
EU_4 Making an e-banking transaction via banks’ websites is simple
I do not have to spend much time searching for e-banking service
EU_5
information via banks’ websites
Accuracy
A_1 Online transactions of customers are always made properly
A_2 E-banking service information on banks’ website is accurate
A_3 Online transactions are made properly
Safety
I believe that Banks do not use personal information of customers for
S_1
wrong purposes
S_2 I feel safe in e-banking transactions via banks’ websites
Sensitive information of customers in e-banking transactions via banks’
S_3
websites is secured
Exposure of risks related to online transactions via banks’ websites is
S_4
low
* Banking service product quality is measured by five observed variables.
Code
BANKING SERVICE PRODUCT QUALITY
BSP_1 Banks supply e-banking services that customers want
BSP_2 Banks supply most of online service functions that customers need
BSP_3 All demands on online services of customers are in categories of banks
BSP_4 Banks supply various online service packages
BSP_5 Many free online services are supplied by banks
* Overall e-banking service quality is measured by two observed

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variables.
Code
OVERALL E-BANKING SERVICE QUALITY
O_1 Generally, e-service quality of banks is good
Generally, banks meet customers’ expectations of components of good
O_2
e-banking service quality
* Customer satisfaction is measured by four observed variables.
Code
CUSTOMER SATISFACTION
CS_1 Generally, I am satisfied with e-banking transactions with Banks
CS_2 Generally, I am satisfied with Internet-based transactions of Banks
CS_3 Generally, I am satisfied with products and services supplied by Banks
Generally, I am satisfied with the bank that I am making transactions
CS_4
with
* Customer loyalty is measured by three observed variables.
Code
CUSTOMER LOYALTY
I will keep on making e-banking transactions via the bank that I am
L_1
making transactions with
The bank that I am making transactions with always is my first choice in
L_2
e-banking transactions

I will introduce the bank that I am making transactions with to my
L_3
friends and relatives
* Switching costis measured by five observed variables.
Code
SWITCHING COST
SC_1 It takes me a lot of time to make e-banking transactions in another bank
SC_2 Making e-banking transactions in another bank will be more expensive
It is difficult to familiar with new procedures on e-banking transactions
SC_3
in other banks
SC_4 It will be uncomfortable to make e-banking transactions in other banks
I have invested much (effort, money, time, etc.) into building
SC_5
relationship with Banks
* Customer trust is measured by three observed variables.
CUSTOMER TRUST
Code
Tr_1 I trust in e-banking services supplied by Banks
Tr_2 Accounts for my e-banking transactions in Banks are extremely safe
Tr_3 I believe that heads of banks always pay attention to customer benefits
E-banking service quality and electronic information system quality
variables are comprised of many components and each component is measured
by observed variables, thus, the author uses summated scale, in which, each
component variable is the average of observed variables. Such average
calculation has no impacts on representation of variables (Bagozzy &
Heatheation, 1994).
3.1.3.2. Reliability of measurement scale
In order to consider reliability of measurement scale, Cronbach’s Alpha
coefficient will be applied. This method helps the analyser to eliminate

inappropriate variables and limit garbage itemsduring research and assess of
reliability of measurement scale by Cronbach’s Alpha coefficient.
Table 3.1: Summary of Cronbach’s Alpha coefficient of variables
No.
Name of variables
Cronbach’s Alpha
1
Online customer service quality
0.870
2
Online information system quality
0.850
3
Banking service product quality
0.891
4
Overall e-banking service quality
0.856
5
Customer satisfaction
0.908
6
Customer loyalty
0.845
7
Switching cost
0.879
8
Customer trust

0.861
Source: Calculation from survey data
Thus, after calculating Cronbach’s Alpha coefficient of variables in the
model, it can be shown that all variables have Cronbach’s Alpha coefficient of
more than 0.8 soall measurement scales are reliable.
3.2. Structural Equation Model (SEM)
3.2.1. Overview of SEM
SEM (Structural Equation Model) is one of the most complex and flexible
techniques used to analyze the complicated relationship in causal model. SEM is
an expansion of the generalized linear model (GLM) which allows researchers
to test a group of regression equations at the same time.
3.2.2. Statistical steps in SEM
Step 1: Test reliability of measurement scale
Use Cronbach’s Alpha coefficient (Hair et al., 1998; Segar, 1997)
Estimate regression coefficient and tvalue
Confirmatory factor analysis (CFA): Use measurement scale to eliminate
variables with low potential factor loading. Apply CFA to each sub-model
before test the general model.
Perform Square Multiple Correlation (SMC)to each external latent concept
(CFA result the above measurement scale), similar to coefficient R2 in linear
regression, SMC is a variance to explain each latent concept (Bollen, 1989).
Step 2: Goodness of fit of the model population
Actual goodness of fit of the general model is assessed by the following
criteria:
Chi-Square (χ2) test shows the general goodness of fit of the whole
model at pv=0.05 (Joserkog & Sorbom, 1989). This rarely occurs in fact because
χ2is extremely sensitive to large sample size and test strength, thus, only χ2/df is
used to assess in fact.
Chi-Square to df ratio (χ2/df) is also used to measure goodness of fit of the
whole model more detailedly. Some authors suggest 1< χ2/df<3 (Hair et al., 1998)

whereas other authors suggest that χ2/df should be as small as possible (Segar,
Grover, 1993) and suppose χ2/df<3:1 (Chin& Todd, 1995). Besides, some practical


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researches have divided into two cases: χ2/df<5 (N>200); or χ2/df<3 (N<200) and in
the latter case, the model is considered to have goodness of fit(Kettingger và Lee,
1995).
If other related indexes such as GFI, AGFI, CFI, NFI, etc., are more than
0.9, the model is considered to have goodness of fit. If such indexes equal1, the
model will be perfect (Segar, Grover, 1993), (Chin & Todd, 1995).
GFI measures absolute goodness of fit (without adjusting degree of
freedom) of structural model and measurement model with data set
AGFI adjusts GFI value fordegrees of freedom in the model
RMR assesses residual variance of observed variables andtheir
correlation with that of other observed variables. The larger RMR is, the higher
residual variance is and this shows a model with goodness of fit.
RMSEA is an important criteria to determine goodness of fit of the
model with population. If required RMSEA and RMR are less than 0.05, the
model will have goodness of fit. If they are less than 0.08, the model will be
acceptable (Taylor, Sharland, Cronin and Bullard, 1993).
NFI measures the difference of normal distribution of χ2 between
independent model (single factor and coefficients ofzero) with variance
measurement and multifactor model. NFI = (χ2null - χ2proposed)/ χ2null = (χ2Mo- χ2Mn)/
χ2Mo
Mo: Original model; Mn: Fit model. Proposed NFI is more than 0.9 (Hair
et al., 1998) & (Chin &Todd,1995)

Probability level is more than 0.05 and the model is considered to have
goodness of fit (Rupp & Segal, 1989). This means that Ho (good model
hypothesis) cannot be rejected and there is no model better than current model.
Step 3: Modification Indices (MI)
Modification Indices are indices estimating variation of χ2 corresponding
to each case of adding a possible relationship (corresponding to a degree of
freedom). In case ∆ χ2 is more than 3.84 (corresponding to a degree of
freedom), a relationship may be suggested to increase goodness of fit of the
model (Hair et al., 1998). However, researchers should be careful because the
relationship added to the model is only considered if it supports the theory
and researchers should not try their best to improve indices to make the
model get more goodness of fit (Hair et al., 1998).
3.2.5. Data handling and analysis tools in SEM
In this research, the author uses two software including SPSS 18 to handle
data and MPLUS 6.1 to run SEM because this is a software running SEM
simply and effectively and it can be easily applied to intermediate variables.

Research samples are collected from customers of commercial banks in
Vietnam. There are 511 customers asked via questionnaires in hard copies and
soft copies. Research samples have some basic statistical characteristics as
follows: for gender, male customers account for 36% whereas female customers
account for 64%; for age, customers at the age of 20-45 years old account for
93.8%, thus, most service users are young and middle-aged people; for income,
customers having income of more than 5 million VND account for 62.6%; for
qualification, customers graduating from colleges and universities and at higher
education level account for 97.3%, thus, most customers are qualified and can
use modern services.
Banks’ website access frequency of customers is extremely low. Only
11.7% of asked customers accesses banks’ websites once per day. This shows
that banks’ websites have low attractiveness. Most customers have used ebanking services for a short time (less than five years) and only 7.6% of

customers uses e-banking services for more than five years.This is reasonable
because e-banking services have been deployed in Vietnam for about 10 years
and most customers have just used such services. For e-banking service products
used by customers, the survey shows that customers in Vietnam using e-banking
services for account information check, money transfer, personal payment, bill
payment and ATM services account for 86%, 70%, 57%, 29% and 19%
respectively. There are only a few customers using e-banking services for
securities trading transaction, credit cards, bill payment, etc.
4.3. Model testing result
4.3.1. Measurement model

CHAPTER 4
RESEARCH RESULTS
4.2. Descriptive statistics


17

18

Table 4.15: Statistical criteria of measurement model
Latent variables

Online customer
service quality
(F1)
Online
information
system quality
(F2)

Banking service
product quality
(F3)
Overall e-banking
service quality
(F4)
Customer
satisfaction (F5)

Customer loyalty
(F6)

Switching cost
(F7)

Customer trust
(F8)

Observed
variables

Factor
loading

Heteroscedasticity
of measurement
0.486

Ttb

0.717

Rtb

0.819

0.329

Restb

0.788

0.379

Etb

0.848

0.281

Eutb

0.847

0.283

Atb

0.791

0.374

Stb

0.801

0.357

BSP_1

0.807

0.348

BSP_2

0.829

0.313

BSP_3

0.838

0.297

BSP_4

0.819

0.330

BSP_5

0.677

0.542

O_1

0.847

0.282

O_2

0.883

0.221

CS_1

0.812

0.341

CS_2

0.804

0.354

CS_3

0.848

0.281

CS_4

0.806

0.350

L_1

0.831

0.309

L_2

0.844

0.287

L_3

0.846

0.285

SC_1

0.767

0.411

SC_2

0.786

0.382

SC_3

0.788

0.379

SC_4

0.630

0.603

SC_5

0.573

0.672

Tr_1

0.89

0.208

Tr_2
Tr_3

0.878
0.687

Average
variance
extracted
(ρv)

Cronbach’s
alpha
coefficient
(α)

Composite
reliability
(ρc)

0.631

0.870

0.872

0.662

0.854

0.854

0.634

0.891

0.896

0.749

0.856

0.856

0.669

0.908

0.890

0.706

0.845

0.878

0.511

0.879

0.837

0.678
0.861
0.862
0.229
0.528
Source: Calculation from survey data
4.3.2. Structural Equation Model (SEM)
4.3.2.1. Fit model selection
After running measurement model, the result shows that measurements
scales have sufficient reliability to run SEM with the aim at testing relationship
hypotheses. Based on research hypotheses and models developed in overview
section, in order to test model hypotheses, the author develops three SEMs in
variables addition method:
Model 1 (Basic model) includes six latent variables including online
customer service quality (F1), online information system quality (F2), banking

service product quality (F3), overall e-banking service quality (F4), customer
satisfaction (F5) and customer loyalty (F6). Model 1 is used to test hypotheses
H1, H2, H3, H4 and H5.

Model 2 adds switching cost variable (F6) other than six latent variables in
model 1 to test one more hypothesis:
H6: Switching cost has an impact on the relationship between customer
satisfaction and customer loyalty.
Model 3 adds two latent variables including switching cost (F6) and
customer trust (F7) other than six latent variables in model 1 to test two
hypotheses:
H6: Switching cost has an impact on the relationship between customer
satisfaction and customer loyalty.
H7: Customer trust has an impact on the relationship between customer
satisfaction and customer loyalty.
After running three structural models above, results will be summarized
and the fittest model will be selected as well.
Test result of model 1
Table 4.16: Summary of goodness of fit of model 1
Number of degrees of freedom
71
Adjacent values in Logarithm Value H0
-13228.985
unit
Value H1
-12919.946
Values of AIC, BIC and adjusted Coefficient AIC
26599.971
BIC
Coefficient BIC
26900.753
Coefficient adjusted BIC
26675.389
Chi-square

when
assessing Value
618.078
goodness of fit of model
Degree of freedom
181
Value p
0.0000
Coefficient RMSEA
Estimation
0.069
Reliability 90%
0.063 0.075
Coefficient RMSEA
0.000
Coefficient CFI and TLI
Coefficient CFI
0.948
Coefficient TLI
0.940
Chi-square
when
assessing Value
8689.220
goodness of fit of base model Degree of freedom
210
developed by software
Value p
0.0000
Coefficient SRMR

Value
0.037
Source: Calculation from survey data
After running model 1, it shows that this model has degree of freedom df =
181> 0.
Coefficient RAMSEA is 0.069<0.08 and this shows goodness of fit of the
model (Diamantopoulos and Siguaw, 2007).
Coefficient SRMR is 0.037<0.05 and this shows goodness of fit of the
model (Taylor, Sharland, Cronin and Bullard, 1993).
Coefficient CFI is 0.948>0.9; coefficient TLI is 0.940>0.9 and this shows
goodness of fit of the model (Segar & Grover, 1993); (Chin & Todd, 1995)


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20

Squared chi to the number of degree of freedom ratio (χ2/df) is 3.4
(618.078/181)<5 and this shows goodness of fit of the model because sample
size is 511>200(Kettingger & Lee,1995)
Results from running two alternative models including model 2 and model
3 are summarized in the following table (Table 4.17) (in comparison with model
1)
Summary table of information on goodness of fit and correlation of three
models shows that model 1 is the best one. Model 1 has AIC = 26599.971, BIC
= 26900.753, ABIC = 26675.389 whereas model 2 has AIC = 34351.168, BIC =
34732.44, ABIC = 34446.768 and model 3 has AIC = 38650.728, BIC =
39091.311, ABIC = 38761.199. Thus, model 1 is the best one because it has the
smallest AIC, BIC and ABIC, followed by model 2 and model 3.
Moreover, in considering correlation coefficient (γ), correlation

coefficient of model 1 has the higheststatistical significance (equivalent to that
of model 2 and more than that of model 3).
Table 4.17: Goodness of fit of models and Correlation coefficient
Information on goodness of
Model 1
Model 2
Model 3
fit
Number of degrees of freedom
71
90
104
Adjacent value in Logarithm
unit
-13228.985
-17085.584 -19221.364
Value H0
-12919.946
1.503
1.492
Value H1
Coefficient AIC
26599.971
34351.168
38650.728
Coefficient BIC
26900.753
34732.441
39091.311
Coefficient adjusted BIC

26675.389
34446.768
38761.199
-0.030
-0.047
-3.423
F1 (γ1)
0.537*
0.669*
4.742
F2 (γ2)
0.469**
0.436**
-0.159
F3 (γ3)
0.929**
0.956**
1.009**
F4 (γ4)
0.879**
0.822**
0.899**
F5 (γ5)
-0.044
0.022
F7xF5 (γ6)
-0.042
F8xF5 (γ7)
Note: F1: Online customer service quality; F2: Online information system
quality; F3: Banking service product quality, F4: Overall e-banking service

quality; F5: Customer satisfaction; F6: Customer loyalty. γ is the relation
coefficient among latent variables.
* Significant at value p < 0.05
** Significant at value p < 0.01
Source: Calculation from survey data

(F6) and customer trust (f7) variables have impacts on the relationship
between customer satisfaction and customer loyalty.
Thus, it can be concluded that model 1 is the fittest one to sample data and
model 1 will be selected in this research.
4.3.2.2. Summary of hypothesis test result
Hypothesis test results are summarized and reported based on the best
model (model 1) and summarized in Table 4.18 below:
Table 4.18: Summary of hypothesis testing result on model 1
Correlation
Hypothesis
Variable
Value p
Hypothesis
acceptance
relationship
coefficient (γ)
H1
F1 → F4
-0.030
0.852
No
H2
F2 → F4
0.537*

0.004**
Yes
H3
F3 → F4
0.469**
0.000**
Yes
H4
F4 → F5
0.929**
0.000**
Yes
H5
F5 → F6
0.879**
0.000**
Yes
Note: F1: Online customer service quality; F2: Online information system
quality; F3: Banking service product quality, F4: Overall e-banking service
quality; F5: Customer satisfaction; F6: Customer loyalty.
* Significant at value p < 0.05
** Significant at value p < 0.01
Source: Calculation from survey data
After running model, it shows that four out of five hypotheses of model 1
have relationships with statistical significance as follows
Hypothesis H1: Online customer service quality and overall e-banking
service quality have a positive correlation.
Model testing result shows that γ1 is equal to -0.030 and smaller than 0
whereas value p is equal to 0.852 and larger than 0.05, thus, there is no basis for this
hypothesis acceptance. In other words, it cannot be concluded that online customer

service quality and overall e-banking service quality have a positive correlation. This
result is different from result inresearches of Jun & Cai (2001) [81]; Han & Baek
(2004) [68]; Nguyen Thi Mai Trang & Tran Xuan Thu Huong (2010) [171]; Le Thi
Tuyet Trinh (2012) [163].
Hypothesis H2: Online information system quality and overall e-banking
service quality have a positive correlation
Model testing result shows that γ2is equal to 0.537>0 whereas value p =
0.004<0.01, thus, this hypothesis can be accepted. In other words, it can be
concluded that online information system quality and overall e-banking service
quality have a positive correlation. This conclusion is generally similar to that of
previous researches of Jun&Cai (2001)[81]; Broderick & Vachirapornpuk
(2002)[27]; Han &Baek (2004)[68]; Flavian, Tores & Guinaliu (2004)[57];
Yang et al. (2004)[150]; Siu &Mou (2005)[134]; Maenpaa (2006)[98]; Nguyen
Thi Phuong Cham (2008)[166], etc.

In model 2 and model 3, hypotheses H6 and H7 have no statistical
significance. In other words, there is no basis to conclude that switching cost


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Hypothesis H3: Banking service product quality and overall e-banking
service quality have a positive correlation
Model testing result shows that γ3=0.469>0 whereas value p=0.000<0.01, thus,
this hypothesis can be accepted. In other words, it can be concluded that banking
service product qualityand overall e-banking service quality have a positive
correlation. This conclusion is completely similar to that of previous researches
of Jun& Cai (2001)[81]; Yang et al. (2004)[150], etc.

Hypothesis H4: Overall e-banking service quality and customer
satisfaction have a positive correlation
Model testing result shows that γ4=0.929>0 whereas value p=0.000<0.01, thus,
this hypothesis can be accepted. In other words, it can be concluded that overall ebanking service quality and customer satisfaction have a positive correlation.
γ4=0.929 proves that two variables has a close relationship.
This result is similar to that of previous researches of Jun&Cai (2001)[81];
Broderick & Vachirapornpuk (2002)[27]; Han &Baek (2004)[68]; Flavian,
Tores & Guinaliu (2004)[57]; Yang et al. (2004)[150]; Siu &Mou (2005)[134],
etc.
Hypothesis H5: Customer satisfaction and customer loyalty have a
positive correlation
Model testing result shows that γ5=0.879>0 whereas value p=0.000<0.01, thus,
this hypothesis can be accepted or it can be concluded that customer satisfaction and
customer loyalty have a positive correlation.γ5=0.879 (relatively high) proves that
customer satisfaction and customer loyalty have a close relationship. In other words,
in the context of e-banking services in Vietnam, satisfied customers will be loyal
customers of banks.
This result is similar to that of previous researches of Dick&Basu (1994)[45],
Fishbein &Ajzen(1975)[53], Bahia &Nantel (2000)[11];Jamal&Naser(2002)[73],
Beerli, Martin &Quintana(2004)[18], Ehigie(2006)[50], Nguyen Thi Mai Trang
(2006) [170], Nguyen Thanh Cong and Pham Ngoc Thuy (2007) [167], Pham Van
Tuan (2014) [173], etc.
Thus, based on model test, hypotheses H2, H3, H4, H5 are accepted
whereas there is no basis for H1 hypothesis acceptance.

Secondly,according to the research result, there is no basis to conclude that
overall e-banking service quality and online customer service quality have a
positive correlation (hypothesis H1).
Thirdly,overall e-banking service quality and online information system
quality have a positive correlation. In other words, according to customer

assessment, if electronic information system quality is improved (more
accessible, accurate and safer), overall e-banking service quality will be
enhanced as well.
Fourthly, overall e-banking service quality and banking service product
quality have a positive correlation. According to this result, in order to improve
overall e-banking service quality, banks should improve their banking service
product quality (diversification of banking services, supply of services that
customers need, provision of more free online services, etc.).
Fifthly, overall e-banking service quality and customer satisfaction have a
positive correlation. Moreover, a very high correlation coefficient (γ4= 0.929)
shows a strong correlation. In other words, if overall e-banking service quality is
improved and meets customers’ demands, customers will be satisfied for sure.
Sixthly, customer satisfaction and customer loyalty have a positive
correlation. This correlation is also strong (γ5 = 0.879) and shows that if customers
are satisfied with e-banking services, they will be loyal to banks. This will be helpful
to marketing strategies of banks. In order to get loyal customers, banks must satisfy
them.
Seventhly, there is no convincingevidence to conclude that in e-banking
sector in Vietnam, switching cost has an impact on the relationship between
customer satisfaction and customer loyalty. This can be explained by the fact
that in Vietnam, bank switching cost (time, effort and money) is not quite high
because commercial bank system of Vietnam has various banks with widespread
branch system and network and this facilitates customers to access banking
services quite easily.
Eighthly, there is no convincing evidenceto conclude that customer trust
(into banks) has an impact on the relationship between customer satisfaction and
customer loyalty in e-banking sector. This conclusion may be different from the
conclusionof previous researches because current e-banking transactions have
been effectively made by banks, commercial banks in Vietnam get great support
and assurance from the State Bank of Vietnam and customers can trust their

electronic transactions as a result. Thus, customer trust has no impact on this
relationship. On the other hand, most e-banking service users are highly
qualified, young and live in large cities, thus, they are less affected by trust
factor. However, this result is inapplicable to old customers not living in cities.
5.2. Some proposals drawn from the research result to commercial banks
5.2.1. Strengthen investment in electronic infrastructure
5.2.2. Strengthen marketing activities for e-banking services
5.2.3. Pay attention to staff training

CHAPTER 5
SOME CONCLUSIONS, PROPOSALS AND FURTHER RESEARCH
DIRECTIONS
5.1. Conclusions
Some basic conclusions can be drawn from research result of this thesis as
follows:
Firstly,the best model to explain the relationship among e-banking service
product quality, customer satisfaction and customer loyalty in Vietnam is model
1 (base model).


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24

5.2.4. Limit risks in e-banking transactions
5.2.5. Improve banking service product quality
5.2.6. Strengthen the link with units, organizations and enterprises
5.3. Limits and further research directions
Although the research has made a great contribution to the study of the
relationship among e-banking service quality, customer satisfaction and

customer loyalty, it has some limits which open further research directions:
Firstly, the research only focuses on e-banking service users in large cities
such as Hanoi, Ho Chi Minh City, Da Nang and fails to cover all cities in
Vietnam.
Secondly, customers focused by the research are individuals with specific
assessment criteria without reachingall customers. Especially, in e-banking
sector, there are a huge number of customers who areenterprises and
organizations with high transaction value. Thus, further researches should focus
on enterprises and organizations.
Thirdly, the research only considers impacts of two intermediate variables
including customer trust and switching cost on the relationship between
customer satisfaction and customer loyalty. However, in fact, there are many
other variables affecting this relationship such as bank image.
Fourthly, the research only mentions the relationship among service quality,
customer satisfaction and customer loyalty. If the relationship between customer
loyalty and bank performance is studied, the research would make more remarkable
contributions to banks’ strategies.
Finally, the thesis has not studied impacts of sociological factors such as
gender, qualification, etc. on the relationship among e-banking service quality,
customer satisfaction and customer loyalty. Such limits may be potential
directions for further researches.

- The thesis states a positive and close relationship between overall ebanking service quality and customer satisfaction and between customer
satisfaction and customer loyalty. However, unlike previous works, in the
context of e-banking in Vietnam, intermediate factors such as switching cost and
customer trust are stated to have no impacts.
* New findings and proposals drawn from the research result
- Based on theoretical model, in order to run model and test hypotheses, the
thesis designs three models by gradually adding intermediate variables and
alternatively testing each model to select the best one. After running models,

statistical result shows that model 1 is the best one.
- Descriptive statistic result shows that e-banking service users in Vietnam
are young, highly qualified (graduated from universities, colleges and at higher
education level) with good income, however, mainly used services are simple
services such as money withdrawal, transfer, account inquiry, etc. whereas credit
card services are unpopular. Thus, marketing strategies of banks should aim at
such potential customers.
- The research results shows that overall e-banking service quality has a
positive correlation with electronic information system quality and banking
service product quality and there is no convincing evidence to conclude that
overall e-banking service quality has a correlation with online customer service
quality. Thus, in order to improve overall e-banking service quality, banks
should strongly invest in enhancing information system quality and developing
new service products to meet customers’ demands.
- The research result shows that customer satisfaction has a very strong
positive correlation with overall e-banking service quality and customer loyalty
has a very strong positive with customer satisfaction as well. Thus, to get loyal
customers, marketing strategies of banks should aim at customer satisfaction by
improvement of service quality.
- The research result shows that intermediate variables including switching
cost and customer trust have no impacts on the relationship between customer
satisfaction and customer loyalty in e-banking sector in Vietnam.
- Based on the research result, the thesis makes some proposals on business
strategies to commercial banks.

CONCLUSION
* Results of the thesis topic
- Based on a general research, the thesis focuses on clarifying theoretical
basis on e-banking services, e-banking service quality, customer satisfaction,
customer loyalty, and factors which can have impacts on the relationship

between customer satisfaction and customer loyalty including switching cost
and customer trust.
*New academic contributions of the thesis:
- Development of a new and comprehensive structural model to explain the
relationship among service quality, customer satisfaction and customer loyalty in ebanking sector in Vietnam. The previous works mainly focused on pair relationship.
- Extended research of two intermediate variables including bank switching
cost and customer trust to consider their impacts on the relationship between
customer satisfaction and customer loyalty.