Assessment of customer service in shinhan bank bacninh branch

Academy of finance

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DECLARATION
I hereby declared that this thesis is my own work and effort and that it
has not been submitted anywhere for any award. Where other sources of
information have been used, they have been acknowledged.
Ha noi ,May 21th,2015
Student
Doan Thi Thuy

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ACKNOWLEDGEMENTS
At the beginning, I would like to give special thanks to M.A. Phan Thi
Xuan and Ngo Thi Viet Anh, my direct supervisors of the internship for their
care, efforts and hours of instruction and correction. From bottom of my
heart, I honestly wish their the best health and success in their life and
career.

Secondly, I would like to express my appreciation to all the teachers of
the Faculty of Foreign Languages, Academy of Finance. Thanks to their
lectures, I have learnt so much knowledge and have been equipped useful
knowledge to do my research.
Thirdly, I also would like to thank staff, especially Ms.Vu Thi Van Anh –
Deputy General Manager and GA department of Shinhan Bank Viet Nam –
Bac Ninh Branch. They are important people who have shared their views,
experience and knowledge with me on the related issue. Thanks to their
contribution and assistance, I have more useful data for my study.

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TABLE OF CONTENT
DECLARATION

1

ACKNOWLEDGEMENTS 3
TABLE OF CONTENT

4

FIGURES AND TABLES

9

LIST OF ABBREVIATIONS 10
INTRODUCTION

11

DEVELOPMENT

13

CHAPTER 1 13
LITERATURE REVIEW

13

1.1 Overview of Shinhan Bank Viet Nam - BacNinh Branch
1.1.1 Development history

13

1.1.2 Main business activities

14

1.2Customer service

13

15

1.2.1 Definitions of customer service 15
1.2.2The roles of customer service

16

1.2.3 Service dimensions all customers care about 17
1.2.3.1 Reliability 18
1.2.3.2 Assurance 19
1.2.3.3. Tangibles 19
1.2.3.4 Empathy

20

1.2.3.5 Responsiveness 20

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1.3. The importance of customer service to commercial bank
1.3.1 Service quality

21

21

1.3.2 Customer satisfaction

21

1.3.3 Levels of customer satisfaction 22
1.3.3.1 Level one - Meet customer expectations

22

1.3.3.2 Level two-Exceed customer expectations

23

1.3.3.3 Level three- Delight the customers

24

1.3.3.4 Level four- Amaze the customers

24

1.3.4Relationship between service quality and customer satisfaction 25
CHAPTER 2:THE STUDY

27

2.1 Research question

27

2.2 Research methodology

27

2.3 Data analysis and discussion

27

2.3.1 Data analysis 27
2.3.2 Responses from customers
2.3.3 Response from staff

28

38

2.4Strengths and shortcomings of banking service for individual customers at
Shinhan bank BacNinh branch 41
2.4.1 Strengths of banking service for individual customers at Shinhan bank
BacNinh branch 41
2.4.2 Shortcomings of banking service for individual customers at Shinhan
bank BacNinh branch
42

2.4.2.1 Shortcomings of banking service

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2.4.2.2 Reasons

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43

CHAPTER 3:CONCLUSION 44
3.1 Findings 44
3.2 Suggestions for improving customer service in Shinhan bank – Bac
Ninh branch44
3.2.1 Suggestions for Shinhan bank – BacNinh branch

44

3.2.1.1 Improving the service quality 45
3.2.1.2 Improving the qualification of the staff

46

3.2.1.3 Ensuring the competiveness of the price

47

3.2.1.4 Creating a professional working environment

48

3.2.1.5 Improving the good image of the bank in the customers.

48

3.2.2 Some recommendations to Shinhanbank Headquarter Office

49

3.2.2.1 Strongly developing the service and exploit differential advantage
products and services 49
3.2.2.2 Developing the network 49
3.2.2.3 Developing the human resources

50

3.2.2.4 Improving the work of management 50
3.3 Conclusions

50

REFERENCES52

APPENDIX

53

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FIGURES AND TABLES

Figure 1.1: The relative importance of each service quality dimension 22
Figure 1.2 Relationship between service and customer satisfaction(Spreng
and Mackoy, 1996)30

Table 1: Categories of customers

30

Table 2: Number of years as a customer of ShinhanBacNinh

31

Table 3: Customer relationship management31
Table 4: Calls or visits from relationship managers to customers in the bank
32
Table 5: Other things customers think the bank can do to make them more
satisfied.
32
Table 6: Location of bank is convenient

35

Table 7: Service provided by staff is professional

35

Table 8 : Promotions to reward customers are regular

36

Table 9: Staff will introduce for customers about new products 37
Table 10: Customers are given individual attention 38
Table 11: Staffs are friendly and courteous 38

Table 12: On the average, what number of customers do you serve in a day?
39
Table 13: What is the average turn around time?

40

Table 14: Some executive decisions affect customer service delivery in my
organization 40
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Table 15: The staff was well equipped with the right resources to deliver
customer service 41
Table 16: Other factor that can aid the bank to improve customer service
41

LIST OF ABBREVIATIONS
WTO

World Trade Organization

Shinhan bank

Shinhan Bank limited

IPCAS

Interbank Payment and Customer Accounting System

APRACA

Asia Pacific Rural and Agricultural Credit Association

CICA

International Agricultural Credit Confederation

ABA

Asian Bankers Association

WB

World Bank

ADB

Asian Development Bank

AFD

French Development Agency

EIB

European Investment Bank

FAEIB

Financing Agreement with European Investment Bank

SWIFT

Society for Worldwide Interbank Financial
Telecommunication

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INTRODUCTION
1.Rationale of the study
In the context of the globalization, there will be only one market in the
world, which is called flat economy. This seems a new definition and requires
Viet Nam companies including banks capacity for super competitiveness. In

2007, Viet Nam official became the 150 th member of World Trade
Organization (WTO) marking the integration of Viet Nam economy with the
world. According to treatments of WTO, Viet Nam has to totally open the
economy for foreign investors and by the way has rights to enter other’s
market. Therefore, customer service is considered the most important
competitive advantage of every bank.
In generally, customer service is all needed action companies have to do
in order to satisfy customers. In the context of super competitiveness,
customer service is much more important advantage to attract customers
and remain good relationship with customers. In Viet Nam, bank system
includes state owned banks, international banks and joint venture banks.
Shinhan Bank Viet Nam included in international banks is assessed good
customer service quality in the group. The business strategy of Shinhan Bank
is to become a leading financial group in the world. Yet, Shinhan’s customer
service is not advantage to compete with other international banks. This
situation drove me to carry out the study of “Assessment of customer
service in Shinhan Bank- BacNinh Branch”, which is expected to analyze
quality of customer service and draw out some recommendations to improve
them.
2.Aims of the sudy
The aim of this study is to assess the customer service quality provided
Shinhan Bank-BacNinh Branch and to suggest some approaches to the
improvement of the customer service quality at Shinhan Bank – BacNinh
Branch in order to meet the expectation of the customers.
3.Scope of the study
As mentioned by the title, the research aims at analyzing quality

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customer service provided by Shinhan Bank - BacNinh Branch. Yet due to
limited capacity of researcher, this research only focuses on customer service
in two year 2012 and 2013. The thesis attempts to draw as good as possible
recommendations to improve quality of customer service in Shinhan Bank
Viet Nam – BacNinh Branch.
4.Methodology
The study reviews associated literature to create framework for the
study. This study also uses questionnaire survey, interview and observation
to collect data for analyzing.
5.Organization of the study
Apart from the Introduction, Conclusion, the main content is divided
into three chapters as follows:
Chapter 1: LITERATURE REVIEW
This chapter gives a general overview of Shinhan bank, customer service
and the role of customer service.
Chapter 2: THE STUDY
This chapter focuses on assessing quality of customer service provided
by Shinhan bank Viet Nam – BacNinh Branch

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DEVELOPMENT
CHAPTER 1

LITERATURE REVIEW
1.1 Overview of Shinhan Bank Viet Nam - BacNinh Branch
1.1.1 Development history
In Vietnam, Shinhan Bank’s history can be traced back to 1993 when
Shinhan Bank first opened the representative office in Ho Chi Minh City and
became one of the pioneers to promote the formal diplomatic relations
between Vietnam and Korea.
SHINHAN BANK VIETNAM is headquartered at Empress Tower (138 - 142
Hai Ba Trung, Da Kao Ward, Dist.1 and Ho Chi Minh City) with registered
capital of VND 4,547.1 billions ( Dec 2012 )
In December 2008, Shinhan Vietnam Bank was licensed to become one
of the first five 100% foreign owned banks in Vietnam.
During the past 20 years of sustainable endeavor in Vietnam, SHINHAN
BANK VIETNAM LIMITED has always been trusted and chosen by Vietnamese
and foreigners, domestic enterprises and foreign investors; including Korean
community in Vietnam.
On 28th November 2011, with the desire to make firm commitment to
Vietnamese market, Shinhan Bank acquired 50% share capital of ShinhanVina
Bank (a joint - venture bank with 50% share capital of Vietcombank and 50%

share capital of Shinhan Bank) and officially changed its name to SHINHAN
BANK VIETNAM.
Up to now, Shinhan Bank Vietnam has 11 branches, transaction office in
Ho Chi Minh City, Ha Noi, Binh Duong, An Dong, Dong Nai,HaiPhongand
BacNinh. In near future, Shinhan Bank Vietnam will continue expanding
branch network to many provinces and cities in Vietnam and constantly
enhance service quality to best serve our dearest customers.
Shinhan Bank Viet Nam - BacNinh branch was established in December
2011 as a subordinate branch of Ho Chi Minh branch. The headquarter of
Shinhan bank- BacNinh branch is at 76 Ly Thai To street – Vo Cuong ward –
BacNinh city.
1.1.2 Main business activities
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With the prize “having excellent performance leading emulation
movement of banking industry in 2012” awarded by State Bank of VietNam,
Shinhanbank always focused on the innovation and the application of
banking technology in favor of business administration and the development
of an advanced banking services network.
The services of Shinhan bank include:
*Deposits: With various deposit terms (week, month, year),

Shinhanbank offers a range of deposit terms and interest payment. Money
can be withdrawn after a certain deposit term as customers agreed with the
bank if they choose this product. And Shinhanbank show its promise that
when using deposit services of Shinhanbank, customers are ensured in
making payment transactions; safe and high beneficiary for saving and
investing.
*Loans: “Your concerns about financial needs will be resolved quickly by
Shinhanbank with flexible and economical products with various credit
services”. This is the announcement issued by Shinhanbank. Shinhan bank
BacNinh branch provides many loan products for individual based on
customers’ needs.
Home loans: Shinhan’s fixed rate mortgage home loan with 2 years of
grace period, 5 years of 10% fixed rate will help you to have stable financial
statement and assure to start a new life chapter. Loan amount is up to 70% of
the house value.
Car loans: Interesting experience on every road with many offers from
Shinhan. Two interest rate options:
Option 1: Fixed rate 8% in the 1st year
Option 2: Fixed rate 10.5% up to 5 years
Loan limit is up to 70% car value with flexible loan period up to 60
months. By linking many Car Dealers, Shinhanbank helps customers easily
choose suitable car.
*Services: Shinhanbank transfers fast from customer’s account or cash
to any local/oversea bank with various foreign currencies.
*Internet banking: i-Banking is the useful way to save time in making
financial transactions such as account transfer, bill payment, credit card
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payment, account statement and etc. without going to the banks office.
Customer’s finance is managed fast and effectively anytime and anywhere.
1.2Customer service
1.2.1 Definitions of customer service
Customer service is often seen as an activity, performance
measurement and a philosophy. So, Customer service has been defined by
many scholars and conveys different meanings.
In Susan Ward’s opinion: “Customer service is an organization’s ability
to supply their customer’s wants and needs”.
GeogreD.Wagenheim, a professor at Michigan State University, and John
H.Reurink, a professor at Michigan Department of Commerce state that
“Customer service is a management strategy that focuses on meeting
customer satisfaction”. (1991)
Moreover, according to Wikipedia.org, customer service is the provision
of service to customer before, during and after a purchase.
Customer service in banking is one of the most important ways to keep
customers come back. Good customer service can create customer loyalty. It
includes responding to customer’s questions and complaints in a thorough
and timely manner and interacting with customers through telephones,
mails, faxes or face to face meetings.
1.2.2The roles of customer service
Customer service plays an important role in business activities
nowadays. Your customers are the reason why you are in business. Customer

is the sources of all profit and profit allows a business to grow. Thus, you
always try to attract more customers.
Customers today are interested in not only the product they are being
offered but also all the additional elements of service that they receive from
the greeting and promising. Customer service refers to all aspects of
interaction with a customer and the organization’s image in the mind of a
customer. Beside product or service quality, customer service also makes
your customer satisfied or dissatisfied and affects their decision of coming
back or not. Keeping your customers happy is the key to keep your customers
with you. Therefore, high quality customer service helps to create customer
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loyalty. Repeat customers are the sources of all profit, and profit allows a
business to grow.
Moreover, good customer service is the foundation of any business. It
leads to many benefits, provides a platform for continued growth and helps
to build your business reputation. Not only will you gain trust with your
current clients, they’ll also become a wonderful referral systems as they
spread the word about your business to other prospects. Excellent customer
service also makes your competitive advantage, sets your aside from your
competitors even when they may sell the same products. In the long run,

treating people fairly and with respect will bring success to your company
today and in the future.
Specially, “The customer is always right" is a famous business slogan.
The underlying truth behind this statement is recognizing that customers are
the life blood for any business. Understanding the importance of good
customer service is essential for a healthy business in creating new
customers, keeping loyal customers, developing referrals for future
customers and jumping ahead of the competition.
1.2.3 Service dimensions all customers care about
Customers always want to receive excellence service. Zeithaml,
Parasuraman and Berry (1990) developed SERRVQUAL to measure quality in
service sector. Therefore, the five dimensions that customers care are:
Tangibles-Appearance of physical facilities, equipment, personnel, and
communication materials
Reliability-Ability to perform the promised service dependably and
accurately
Responsiveness-Willingness to help customers and provide prompt
service
Assurance-Knowledge and courtesy of employees and their ability to
convey trust and confidence
Empathy-Caring, individualized attention the firm provides its customers
Not all dimensions are equal. All dimensions are important to
customers, but some are more important than others. Service providers need
to know which are which to avoid majoring in minors. At the same time they
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can’t focus on only one dimension and let the others suffer.
SERVQUAL research showed dimensions’ importance to each other by
asking customers to assign 100 points across all five dimensions.
Here’s their importance to customers.

Figure 1.1: The relative importance of each service quality dimension
1.2.3.1 Reliability
Reliability is the ability to perform the promised service dependably and
accurately. This dimension includes keeping promises, showing a sincere
interest in solving problem, giving right service at the first time, providing the
service at the time the company promise to do so and trying to keep an error
free record. That means this dimension can be connected to both technical
and functional quality. Showing a sincere interest in solving problem is about
the manner in which the service is delivered and therefore it is connected to
the technical quality. “Do what you say you are going to do when you said
you were going to do it” because customers want to count on their
providers. It is three times more important to be reliable than having modern
appearance of physical facilities, equipment, personnel and communication

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materials. It does not mean to ignore tangibles and only be focus on
reliability, service providers have to do both. But provider’s first and best
efforts are better spent making service reliability.
1.2.3.2 Assurance
Assurance is the knowledge and courtesy of employees and their ability
to convey trust and confidence. This dimension can also be connected to the
functional quality. According to Zeithaml, Berry and Parasuraman (1990),
assurance is about competence, courtesy, credibility and security. Gronroos
(1993) describes those factors separately:
Firstly, Courtesy is about politeness, respect, consideration, friendliness
of contact personnel (including receptionist, telephone operators and so on).
Secondly, Competence is connected to the knowledge and skills of
contact, operational support personnel (and also research capability) that are
needed for delivering the service.
Thirdly, Credibility involves factors such as trustworthiness, believability
and honesty. It means to the level the company has the customers’ best
interest at heart. Factors that affect the credibility are the company name,
reputation, personal characteristics and the degree to which the hard sell is
connected to interactions with customers.
Lastly, Security means freedom from danger, risk or doubt. Factors
included are physical safety, financial security and confidentiality. In the
viewpoint of customers, service providers are expected to be the experts of
the service they are delivering. If a service provider is highly skilled, but they
cannot make the customers see that, the customers’ confidence in that
provider will be lower. And their assessment of that provider’s service quality

will have the same trend.
1.2.3.3. Tangibles
Tangibles refer to the appearance of physical facilities, equipment,
personnel and communication materials. That means it deals with all that is
physically visible and touchable. Even though this is the least important
dimension, appearance matters, service providers still want to make sure
that their employees appearance, uniforms, equipment and work areas onsite (closets, service, offices, etc.) look good. The danger is for providers who
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can make everything look sharp and then fall short on reliability or
responsiveness.
Grönroos (2007) mention that service quality can be divided into two
parts, functional quality and technical quality. Tangibles can be connected to
the functional quality (Grönroos, 2007).
1.2.3.4 Empathy
According to Zeithaml, Berry and Parasuraman (1990), empathy is about
easy access, good communication and understanding the customers.
Grönroos (1983) describes those factors separately:
Easy access is connected to the approachability which means for
example: the operating hours and the location of the facilities are
convenient, the waiting times are short and also easy access by telephone,

etc.
Good communication is about keeping the customers informed in a
language they can understand and also listen to the customers. The company
may have to training the staff or adjust the recruitment policy to adapt to the
international environment.
Understanding the customers is about making an effort to understand
the customers which involves learning about specific requirements, providing
individual attention and recognizing also the regular customers.
1.2.3.5 Responsiveness
Responsiveness means the willingness and readiness to help customers
and provide prompt service. It also means to respond quickly, promptly,
rapidly, immediately or instantly. This is the second important factor when
customers think about the service quality. This dimension can be connected
to the technical quality because the features are about how the service is
delivered. After reviewing relevant literature, a theoretical framework has
been established within which the actual study on the customer service at
Shinhan Viet Nam – BacNinh branch will be carried out. The service provided
by Shinhanis assessed against the dimensions of service quality: reliability,
assurance, tangibles, empathy and responsiveness.
1.3. The importance of customer service to commercial bank
1.3.1 Service quality
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Service quality involves a comparison of expectations with performance.
According to Lewis and Booms, service quality is a measure of how well a
delivered service matches the customers’ expectations. Parasuraman and
Berry (1985) viewed quality as “the degree and direction of discrepancy
between customers’ service perception and expectations”.
Generally, the customer is requesting a service at the service interface
where the service encounter is being realized, and then the service is being
provided by the provider and at the same time delivered to or consumers’
needs while remaining economically competitive at the same time. This
means that satisfying customers’ needs is very important for the enterprises
to survive.
1.3.2 Customer satisfaction
In recent years, most of enterprises have understood the importance of
customer satisfaction. It is necessary to define what customer satisfaction is.
According to Richard L. Oliver (1996) – “Satisfaction is a customer’s
fulfillment response. It is a judgment that a product or service feature, or the
product or service itself, provides a pleasurable level of consumption related
fulfillment”. While Philip Kotler claims that – “Satisfaction is a person’s
feeling of pleasure or disappointment resulting from comparing a product’s
perceived performance (or outcome) in relation to his experience.”
Customer satisfaction is defined as “customer satisfaction, or
dissatisfaction, is the feeling of a customer has about the extent to which
their experiences with an organization have met their needs”. It can be
understood that satisfaction is a function of perceived performance and
expectations. If the performance falls short of expectation, the customer is
dissatisfied. If the performance matches the expectations, the customer is
satisfied. And if the performance exceeds expectations, the customer is
delighted.

In today’s competitive environment, every business is trying to attract
the customers by assuring highest degree of satisfaction. Satisfied customers
are the main determinants of success or failure of an organization’s business.
1.3.3 Levels of customer satisfaction
Customer satisfaction is the key to building the clientele of any business.
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The more you satisfy your customers, the more your business can grow.
According to Brian Tracy, one of America’s leading authorities on the
development of the human potential, customer service can be identified to
four levels which are achieved by providing corresponding levels of customer
service. The higher the level you achieve, the more customer loyalty you will
build and the greater your success will be.
1.3.3.1 Level one - Meet customer expectations
At level one, a business meets its customers’ expectations. This is the
minimum requirement to simply stay in business in order to survive. At this
level, customers have no complaints about your products or services. They
are satisfied for the moments. But they are not loyal. If a competitor
demonstrates that it can and will do more than merely meet their
expectations, your customers will very quickly not use your products or
service anymore. They will become your ex-customers.

Moreover, finding another company sell the similar products with a
good customer service is not difficult in the current competitive
environment. If someone comes into your store expecting to purchase
something, the staff must provide good services and expertise to help in the
purchase in a reasonable amount of time, or the customer will get frustrated
and leave. If enterprises fail to meet their expectations, perhaps only one
time, they will leave and find someone else who will promise to offer them a
better service. Knowing what the customer expects is the first and possibly
most critical step in delivering good quality service. Being wrong about what
customers want can mean losing a client when another company gives the
right demand. Being wrong can also mean expending money, time and other
resources on things that do not count to the customers. Being wrong can
even mean not surviving in a fiercely competitive market. Therefore, at this
level, customers easily come to your company but they also easily go.
1.3.3.2 Level two-Exceed customer expectations
The higher level of customer satisfaction is exceeding customer
expectations. It means that surprising your customers, going beyond what
they expected. Fast, friendly service, followed up by a phone call to make
sure everything is alright, might you put into this category. Once your
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customers understand your company’s customer service standards, they will
understand that your company has gone above and beyond its standard
practices.
Good customer service can set your company aside from competitors.
The second level is where you start to build customer loyalty. When service
happens faster than expected, or is better than expected, customers leave
your store pleased and are much more likely to return. They may even be
willing to pay a little bit higher prices. They second level of customer service
moves you beyond survival, building a measure of customer loyalty and
giving you an edge over your competitors. It can also increase your
profitability. Customers who experience the kind of service that exceeds their
expectations are often willing to pay for it, enabling the supplier to raise and
thus improve profit margins.
1.3.3.3 Level three- Delight the customers
This level is where you show customers that you really care about them.
Putting you in touch with the spirit of what the clients want to accomplish is
the key of the value and principle of “customer delight”.
Customers who are serviced at this level are truly delighted. Not only
have the customers’ basic needs been met, or even exceeded, but also they
have truly been touched on an emotional level. And once customers have
enjoyed this experience, it will be very difficult for a competitor to attract
them. When you delight your customers, you are on the way to create a have
discovered a formula that goes beyond products and services. Their business
is providing delight to their customers by understanding their specific
personal interests, anticipating their needs, exceeding their expectations,
and making every moment and aspect of the relationship a pleasant.
To delight your customers is to show that how you care about them. It
will bring a smile to their face. The greater your services delight your
customers, the greater your services delight your customers, the greater
success you will enjoy in your business.

1.3.3.4 Level four- Amaze the customers
“Amaze your customers” is the fourth level of customer service. It is
what will push your business into an expert level. Expending the effort to
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amaze customers can propel your business to new heights. By amazing them,
you give customers a compelling reason to patronize your business and
recommend it to their friends. It requires you, not just to meet or exceed
your customers’ expectations, not to simply delight them, but to truly amaze
them. The highest level of customer service is when you develop the habit of
amazing your customers: when you do something for them that is so
extraordinary, they want to run around and tell everybody they know. When
you are able to accomplish this on a regular basis, you will be in a position to
dominate the marketplace and achieve remarkable rates of revenue growth
and profitability.
1.3.4Relationship between service quality and customer satisfaction
“Service quality is the most important factor which impacts of customer
satisfaction.” (Cronin and Taylor, (1992); Yavas et al, (1997); Ahmad and
Kamal, (2002)). If the service provider gives customers the high quality
products to satisfy their demands, the enterprise initially makes customer
satisfaction.

Therefore, service quality and customer satisfaction are closely
correlated with each other (positive relationship), in which service quality is
what is created first and then impacts on the satisfaction of customers. In the
study of the relationship between these two factors, Spreng and Mackoy also
show that service quality is the premise of customer satisfaction.

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Quality expectation
Needs being met

Service quality

Perceived quality

Needs not being met

Customer satisfaction

Quality expectation
Figure 1.2 Relationship between service and customer satisfaction(Spreng

and Mackoy, 1996)

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CHAPTER 2
THE STUDY
2.1 Research question
1. How does of customer service influence customer satisfaction at
Shinhan bank- BacNinh branch?
2. How can Shinhan bank improve customer service?
2.2 Research methodology
The study reviews associated literature to create framework for the
study. This study also uses questionnaire survey, interview and observation
to collect data for analyzing.
The data collected was analyzed using frequency tables and
percentages. Responses were analyzed with excel. Discussion of results were
made in relation to the research questions
2.3 Data analysis and discussion
In this part, analysis and discussion of the results from data collected
will be looked at . Raw data was analysed using SPSS, excel to arrive at
frequency tables and percentages.

2.3.1 Data analysis
How satisfied a customer is depends on the quality of service received
by the customer. Gap analys is model by Ziethamlet. al,.(1988) and Groonros
(2000) is often used to determine the quality of service.
The gap is often between the perception of customers and their
expectation, which will eventually determine whether they are dissatified,
satisfied or excited.
Those customers who are satisfied or excited have a very high
percentage of being retained and eventually will become loyal at the end.
The sample size was 90 however, 80 of the questionare were answered.
70 of which were customers and 10 were staff of Shinhan bank BacNinh
branch.
2.3.2 Responses from customers
Responses from customers are in two parts, the first part reveals the
perception that customers have about the services offered in the Shinhan
bank BacNinh and the second part deals with strategies that the bank has
Doan ThiThuy

CQ49/51.03


Academy of finance

Graduation thesis

24

put in place as a result of customer expectation so as to satisfy the customers
and as such retain them.
CUSTOMER PERCEPTION RESULTS

Table 1: Categories of customers
Category
Frequency
Percent
Retail

43

63.2

Private/Executive

11

16.2

Corporate

14

20.6

Total

68

100

Source: By Author, April 2015
Table 1, aims at establishing the composition of the various customer

categories at Shinhan bank. This is critical because different categories of
customers are exposed to different levels of customer service and therefore
have different perceptions about customer satisfaction.
This table shows a high level of response from retail customers. There
were 43 out of 68 responses from retail customers representing 63.2 % of
total respondents.
In the BacNinh branch of Shinhan bank, there are three categories of
customers, the retail customers are those who come to the bank on day to
day basis to transact business. Private\Executive customers are those who
can call from their homes to transact business or come to the bank as and
when there is something very important to be done in the banking hall.
Coporate customers are the special customers. They have a special hall and
special staff to attend them.
Table 2: Number of years as a customer of ShinhanBacNinh
Year
Frequency
Percent
0 – 1 year

14

20

2 – 3 years

53

Above 3 years

3

75.7
4.3

Doan ThiThuy

CQ49/51.03


Academy of finance
Total

Graduation thesis

25
70

100

Source: By Author, April 2015
Shinhan bank – BacNinh branch opened in 2011. From table 2, 53
respondents representing 75.7% appeared to have done business with the
bank since its inception. This may be described as customer loyalty and the
banks ability to retain its customers.
Table 3: Customer relationship management
Frequency
Percent
Yes

52

76.5

No

10

14.7

Do not know

6

8.8

Total

68

100

Source: By Author, April 2015
One of the service promises of Shinhan bank to its customers is access
to relationship manager.
In table 3, 76.5% of respondents said that they have relationship
managers. Implying the bank, to the large degree is delivering on its service
promises. One of rest 16 residents, 10 said they do not have relationship
managers while 6 do not know whether they have relationship managers.
Though this number is lower compared to those who said they had
relationship managers, it is still critical to a bank that aims at retaining its

customers. This is because it is less costly retaining an existing customer that
prospecting a new one.
Table 4: Calls or visits from relationship managers to customers in the
bank
Calls/Visits
Frequency
Percent
Very regularly

15

22.4

Regularly

19

28.4

Doan ThiThuy

CQ49/51.03