(Luận văn thạc sĩ) research FDI customers satisfaction with products and services of techcombank, bac ninh branch

ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
---------------------

NGUYỄN THỊ MINH PHƯƠNG

RESEARCH FDI CUSTOMERS SATISFACTION
WITH PRODUCTS AND SERVICES OF
TECHCOMBANK BAC NINH BRANCH
NGHIÊN CỨU SỰ HÀI LÒNG CỦA KHÁCH HÀNG DOANH
NGHIỆP FDI VỚI SẢN PHẨM DỊCH VỤ CỦA NGÂN HÀNG
TECHCOMBANK CHI NHÁNH BẮC NINH

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2018


ĐẠI HỌC QUỐC GIA HÀ NỘI
KHOA QUẢN TRỊ VÀ KINH DOANH
---------------------

NGUYỄN THỊ MINH PHƯƠNG

RESEARCH FDI CUSTOMERS SATISFACTION
WITH PRODUCTS AND SERVICES OF
TECHCOMBANK BAC NINH BRANCH
NGHIÊN CỨU SỰ HÀI LÒNG CỦA KHÁCH HÀNG DOANH
NGHIỆP FDI VỚI SẢN PHẨM DỊCH VỤ CỦA NGÂN HÀNG
TECHCOMBANK CHI NHÁNH BẮC NINH

Chuyên ngành: Quản trị kinh doanh
Mã số: 60 34 01 02
LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS. HỒNG ĐÌNH PHI

Hà Nội - 2018


DECLARATION

The author confirms that the research outcome in the thesis is the result of
author’s independent work during study and research period and it is not yet
published in other’s research and article.
The other’s research result and documentation (extraction, table, figure,
formulaand other document) used in the thesis are cited properly and the permission
(if required) is given.
The author is responsible in front of the Thesis Assessment Committee,
Hanoi School of Business, and the laws for above-mentioned declaration.

Hanoi, date of …… / …… /……..


ACKNOWLEDGEMENT
I would like to express my deep gratitude to the teachers of the Hanoi school
of Business and Management, Vietnam National University, especially the teachers
who imparted to me a lot of knowledge and helped me. Carry out this essay.
I would like to express sincere gratitude to Assoc. Prof. Hoang Dinh Phi has
spent a lot of time, dedicated guidance, only told me during the course of the topic.
I would like to express my sincere thanks to Techcombank Bac Ninh and for

helping me in collecting data and information needed for the study of this thesis.
I sincerely thank family, friends and colleagues for encouraging and
supporting me in the process of study and research.


TABLE OF CONTENTS

ABBREVIATION ....................................................................................................... i
LIST OF TABLES ..................................................................................................... ii
LIST OF FIGURES................................................................................................... iii
INTRODUCTION .......................................................................................................1
CHAPTER 1: THEORETICAL FRAMEWORK ON FDI ENTERPRISES AND
SATISFACTION OF FDI ENTERPRISES TOWARDS THE PRODUCTS AND
SERVICES OF COMMERCIAL BANKS .................................................................6
1.1 FDI enterprises ..................................................................................................6
1.1.1 Concepts ....................................................................................................6
1.1.2 Characteristics ..........................................................................................7
1.2 Satisfaction of FDI enterprises towards the products and services of
commercial banks ...................................................................................................8
1.2.1 Concept and measurement of satisfaction .................................................8
1.2.2 Characteristics of banking services ........................................................10
1.2.3 Research models of customer satisfaction towards the quality of
commercial banks’ services..............................................................................11
1.2.4 Proposed model of the study ...................................................................17
1.3 Experience in improving the satisfaction of FDI enterprises of commercial
banks and lessons for Techcombank - Bac Ninh Branch .....................................18
1.3.1 Experience of some commercial banks ...................................................18
1.3.2 Lessons for Techcombank - Bac Ninh Branch ........................................20
CHAPTER 2: REALITY

OF SATISFACTION

OF FDI

ENTERPRISE

CUSTOMERS TOWARDS PRODUCTS AND SERVICES OF TECHCOMBANK
– BAC NINH BRANCH ...........................................................................................22
2.1 Introduction of Techcombank – Bac Ninh Branch and FDI enterprises in Bac
Ninh Province .......................................................................................................22
2.1.1 Introduction of Techcombank – Bac Ninh Branch ..................................22


2.1.2 Overview of industrial parks and FDI enterprises in Bac Ninh Province .....26
2.1.3 Reality of exploiting FDI enterprise customers of Techcombank – Bac
Ninh Province ...................................................................................................30
2.2 Overall assessment of the satisfaction of FDI enterprise customers ..............60
2.2.1 Achievements ...........................................................................................60
2.2.2 Limitations ...............................................................................................60
2.2.3 Causes of limitations ...............................................................................61
CHAPTER 3: SOLUTIONS TO ENHANCE THE CUSTOMER SATISFACTION
TOWARDS PRODUCTS AND SERVICES OF TECHCOMBANK – BAC NINH
BRANCH ..................................................................................................................63
3.1 Development orientations and strategy of Techcombank - Bac Ninh Branch ......63
3.1.1 General development orientation ............................................................63
3.1.2 Orientations for developing FDI enterprise customers ..........................64
3.1.3 Development plan for 2017 .....................................................................65
3.2 Solutions to improve the satisfaction of FDI enterprise customers at
Techcombank - Bac Ninh Branch .........................................................................65
3.2.1 Basis for proposing solutions ..................................................................65

3.2.2 Contents of solutions ...............................................................................67
3.3 Recommendations ...........................................................................................72
3.3.1 Recommendations to the State .................................................................72
3.3.2 Recommendations to the bank association..............................................76
CONCLUSION .........................................................................................................77
REFERENCES ..........................................................................................................79
APPENDIX ...............................................................................................................81


ABBREVIATION

Abbreviation

Meaning of acronym

3D

Three-dimensional images

UK

United Kingdom

IEC

International Electrotechical Commission

NAPAS JSC

National Payment Services Joint stock company

ISO

International quality standard

ATM

Automated Teller Machine

POS

Point of Sale

i


LIST OF TABLES

Table 2.1: Industrial Parks in Bac Ninh Province .....................................................26
Table 2.2: Locations FDI enterprises in Bac Ninh Province ....................................27
Table 2.3: Characteristics of FDI enterprises in Bac Ninh Province ........................29
Table 2.4: Products and services operated by Techcombank - Bac Ninh Branch ....32
Table 2.5: Number of transaction offices of Techcombank – Bac Ninh Branch’s
competitors ................................................................................................................36
Table 2.6: Number of ATMs of competitors at industrial parks ...............................38
Table 2.7: Strengths of competitors ..........................................................................40
Table 2.8: Gender ......................................................................................................42
Table 2.9: Age ...........................................................................................................42
Table 2.10: Educational background ........................................................................43
Table 2.11: Job positions...........................................................................................44

Table 2.12: Income of employees ............................................................................45
Table 2.13: Reliability of the scale ..........................................................................46
Table 2.14 Convergence of the scale ........................................................................48
Table 2.15: Correlation among factors .....................................................................49
Table 2.16 Regression results ...................................................................................50
Table 2.17 Evaluation on Convenience ....................................................................52
Table 2.18: Evaluation on Tangibles ........................................................................53
Table 2.19: Evaluation on Serving Style of the staff ...............................................54
Table 2.20: Evaluation on Contact with customers ..................................................56
Table 2.21: Evaluation on Trust ................................................................................57
Table 2.22: Evaluation on Image of the bank ..........................................................58
Table 2.23: General evaluation on Customer satisfaction ........................................59

ii


LIST OF FIGURES

Figure 1.1: Characteristics of FDI enterprises ............................................................7
Figure 1.2 SERVQUAL model of customer satisfaction .........................................12
Figure 1.3: CBSQ model of Xin Guo et al. (2008) ..................................................14
Figure 1.4 FTSQ model (GrÖnroos, 1984) ..............................................................15
Figure 1.5 Research model of the thesis ...................................................................18
Figure 2.1: Organizational structure of Techcombank – Bac Ninh Branch .............24
Figure 2.2: Number of FDI enterprise customers at Techcombank – Bac Ninh Branch .....31
Figure 2.3: Contribution of FDI enterprises in TOI after DP of the branch .............34
Figure 2.4: Contribution proportion of FDI enterprises ...........................................35

iii

INTRODUCTION
1. Statement of the problem
Since the country opened its economy and received foreign investment capital,
FDI enterprises have become an important part of the economy. In the current context,
FDI enterprises play an important role in the Vietnamese economy. The labor force
employed alone accounts for about 3 million workers, accounting for over 20% of the
total capital of the economy. The FDI sector has a large proportion of GDP in some
provinces such as Bac Ninh, Ho Chi Minh City, Binh Duong (Vietnamplus.vn, 2016).
This is a dynamically developing area, helping to increase capital for the economy,
create jobs, increase export turnover and make a great contribution to revenue. At the
same time, this area is more effective than other economic sectors, FDI accounts for
about 70% of total export turnover, industrial production accounts for nearly 60% (Hai
Quan Newspaper, No. 10 / 2015)
As for the banking sector, the potential of the FDI sector in this sector is
enormous in the context of Vietnam's integration with developed economies around
the world through agreements trade. Consequently, the demand for financial
services - banking of FDI enterprises is very large. However, the number of foreign
banks in Vietnam is not much and the network is limited. Therefore, this is the
segment of potential customers, reducing the competitive pressure in the
development of banking products and services for our commercial banking system.
However, most FDI enterprises are multinational corporations with investment
experience in many countries and have a strong financial foundation and deep
international business knowledge. It therefore requires banks to provide the most
comprehensive and up-to-date service.
On the other hand, the "landing" of foreign banks in the coming time will
cause increased competition pressure on domestic banks in this segment of
customers. Therefore, at this point the commercial banking system needs more
measures to get closer and faster to this potential customer.
Understanding that market trend, many commercial banks in Vietnam have

taken the first steps in promoting cooperation, modeling, finishing products,
1


services and modernizing banking technology to attract the maximum number of FDI
customers. With a slower start point than other commercial banks in the field of
international payment, Techcombank did not have much access to and attracted FDI
firms using services provided by the bank. Recognizing the role of attracting FDI
enterprises using banking products and services, in the period 2012-2015,
Techcombank branch in Bac Ninh deployed in-depth product and service
development strategy to meet the needs of FDI enterprises in the area. However, due
to the competition among banks in the area, especially internal banking factors such
as product policy, banking size, etc., the ability to attract groups of FDI enterprise
customers has not yet achieved high results: its market share was only at the expense
of 6% of market share, equivalent to nearly 50 FDI enterprises in the province.
So how to enhance customer satisfaction towards the products and services
and expand market share of Techcombank - Bac Ninh Branch are the issues that
Techcombank - Bac Ninh Branch is concerned about. Therefore, as a branch
director of Techcombank - Bac Ninh Branch located in the area where there are
many FDI enterprises, the author conducted the research entitled "A study on FDI
enterprise customers’ satisfaction towards the products and services of
Techcombank - Bac Ninh Branch" as his graduation thesis.
2. Literature review
In general, FDI is an array of scientific research content that is extremely
diverse and attracts the attention of scientific researchers. However, most of the
studies are on the range as a country, region, province or economic sector. There is
very rare study about attract the existing FDI enterprises to become partners,
business customers in the fields of the economy in general and in the banking sector
in particular. These followings are related to this research content.
Le Sang (2014), focused on analyzing the important role of foreign direct

investment enterprises (FDI-enterprises) of Vietcombank. This study confirms the
role of FDI in the development of Vietnam in many ways such as promoting
economic growth, improving the efficiency of domestic investment resources,
technology transfer, international payments, export development, improving
2


competitiveness in all three levels: National - Enterprise - and products… With
Vietcombank, customer attraction in group of FDI enterprises has much contributed
in total income of Vietcombank. To achieve this result, Vietcombank managers
have pushed on active many efficiency solutions such as: diversify of banking
services, flexibility to meet FDI enterprises’ requirements… However, the analysis
in this research is just only based on the author's view, but on any specific
theoretical frameworks to analyze.
Khue Nguyen (2015) focused on analysis the necessity as well as the
solutions to attract customers in group of FDI enterprises for commercial banks.
This study confirms the importance of the customer in FDI enterprises group with
commercial banks. Because FDI enterprise customers have large capital investment,
higher capital requirements, professional activity, high credit level ... so hold this
market segment is an important business target that commercial banks of Viet Nam
should perform. At the same time, the author also points out a number of solutions
to attract customers among FDI enterprises group such as: letter of credit, customer
development department specifically for FDI customer, unsecured loans (trust
loans), widen credit level... This study achieved some practical results with
commercial banks. However, the author has not done to assess the effectiveness of
the solutions that were implemented at the banks. Also, the lack of scientific basis
for proposed solutions.
Oanh, Giang (2009) has done a study on attracting FDI enterprises at
Vietcombank with the main contents include: banking services for corporate
customers in general and FDI in particularity, the solutions that Vietcombank has

developed. One of the solutions is high appreciated that cooperation agreement
signed with the Foreign Investment Agency (FIA). Since then, the Vietcombank
became the first official partner of the FIA in providing banking services for FDI
enterprises in Vietnam. Therefore, the Vietcombank has early access to foreign
partners intend to invest in Vietnam. At the same time, through the FIA, foreign
partners have confidence in Vietcombank; create favorable conditions for future
cooperation. This study provides commercial banks a truly effective solution in
3


finding partners FDI. However, this solution is not the author's offer (this solution is
the actual operation was performed Vietcombank). Therefore, the findings are not
really the solution to this author's own.
Le Trinh (2015) conducted a study on attracting FDI enterprises HDBank.
Contents of this study refer to services provided by HD Bank for FDI partners such
as: account services, support liquidity, funding, projects investment and export
financing, electronic services, project consulting... Based on this analysis, the
authors evaluate the effectiveness of each solution that HD Bank has done. In
particular, the solution of "Japan Desk" is considered as a intelligent solution and
efficient. According to the author, the implementation of the strategy dedicated to a
specific customer group (Japan) could be a strategic direction for each bank. But the
author just assessed the effectiveness of solutions that was proposed by HDBank
without added another new solutions.
Thus, although there is quite a lot of related research, there are always exists
certain limitations. Previous studies have not clarified the satisfaction aspects of
FDI with existing banking services. At the same time, there is no appropriate
theoretical background in the evaluation of the effectiveness of solutions to attract
FDI as well as the specific evaluation indicators. On the other hand, at
Techcombank-Bac Ninh branch, there is not any research about this content array.
This is the “research gaps” that author are expected to fill in this study.

3. Research objectives
3.1 General objective
This research focuses on studying the FDI enterprise customers’ satisfaction
towards the products and services of Techcombank - Bac Ninh Branch.
3.2 Specific objectives
- Systemize basic theoretical framework on FDI enterprises and satisfaction
of FDI enterprises towards the products and services of commercial banks.
- Present the reality of satisfaction of FDI enterprise customers towards
products and services of Techcombank – Bac Ninh Branch.

4


- Propose solutions to enhance the customer satisfaction towards products
and services of Techcombank – Bac ninh Branch.
4. Research object
The object of the research is the satisfaction of FDI enterprises towards the
products and services of Techcombank-Bac Ninh.
5. Research scope
This study will be carried out at Techcombank-Bac Ninh Branch and FDI
enterprises located in Bac Ninh province.
6. Research methodology
Comparative method: this method is applied in:
+ Analysing the change number of FDI enterprises who use the
Techcombank-Bac Ninh services and other banks in Bac Ninh over the years
+ Analysing the change number of banking products and services for these
customers over the years
Descriptive statistics method: this method is applied in:
+ Calculate the average of the results of surveys of customers are FDI
enterprises in Bac Ninh province,

+ Determine the level of FDI customers satisfactionin Bac Ninh province
with the banking system (in general) and banking service of Techcombank-Bac
Ninh via 5 level of Likert scale.
7. Research structure
The thesis is divided into three chapters as follows:
Chapter 1: Theoretical framework on FDI enterprises and satisfaction of FDI
enterprises towards the products and services of commercial banks.
Chapter 2: Reality of satisfaction of FDI enterprise customers towards
products and services of Techcombank – Bac Ninh Branch
Chapter 3: Solutions to enhance the customer satisfaction towards services of
Techcombank – Bac Ninh Branch

5


CHAPTER 1: THEORETICAL FRAMEWORK ON FDI ENTERPRISES
AND SATISFACTION OF FDI ENTERPRISES TOWARDS THE
PRODUCTS AND SERVICES OF COMMERCIAL BANKS
1.1 FDI enterprises
1.1.1 Concepts
* Enterprise
An enterprise is an economic unit established to carry out business activities
for the purpose of profitability.
According to the amended law on enterprises of our country in 2014:
Enterprises are economic organizations with their own names, assets, stable
transaction offices and business registration in accordance with the provisions of
law for the purpose of implementing business activities.
According to the Institute for Statistics and Economic Research of France
(2004): An enterprise is an economic organization (agent) whose principal function
is to produce goods or services for sale.

* FDI enterprise
FDI can be understood in English as Foreign Direct Investment. However,
the definition of FDI enterprises in Vietnamese law is still unclear and inconsistent.
According to the Law on Investment (2005): FDI enterprises are foreigninvested enterprises, including enterprises established by foreign investors to carry
out investment activities in Vietnam or Vietnamese enterprises which are sharepurchased, acquired, or merged by foreign investors; in which, foreign investors are
foreign organizations and individuals who spend capital conducting investment
activities in Vietnam.
According to the Circular No. 213 of the Ministry of Finance issued in 2012,
FDI enterprises are enterprises established by non-Vietnamese nationality
individuals operating under foreign laws or enterprises established and operating
under the law of Vietnam with 100% foreign capital or member fund, or individual
stock investment companies which the foreign party is entitled to own 49% of
chartered capital.
6


According to the Decree 01 issued in 2014 by the Government, FDI
enterprises are enterprises in the following cases:
- Being an organization established by non-Vietnamese nationality
individuals.
- Being an organization operating under foreign laws or an enterprise
established and operating under the law of Vietnam with 100% foreign capital.
- Being an organization established and operating in Vietnam with a foreign
capital contribution of over 49%.
1.1.2 Characteristics
From different definitions of enterprises and FDI enterprises, the main
characteristics of enterprises in general and FDI enterprises are summarized as
follows:
FDI enterprises

A

A

Combi

Prod

place

group

nation

uctio

harm

to

of

of

n for

to the

seek

people

produc

sale

profits

with

tion

(outp

organi

factors

ut

zation

(input

factor

and

factors

s)

hierarc

)

Profit division

Worker

Owner

Cause

enviro
nment

Creditor

Supplier

hy

Figure 1.1: Characteristics of FDI enterprises
- FDI enterprises are organizations and units established mainly to carry out
business activities.

7

- FDI enterprises are large-scale business entities (exceeding the size of
domestic enterprises, individuals, households) such as cooperatives, companies and
factories. The term “FDI enterprises” is conventional to distinguish with
independent workers or workers and their households.
- An FDI enterprise is a living entity. Therefore, it also has its own life cycle
from the beginning of its intention, decline or growth, ups and downs or destruction.
To sum up, FDI enterprises are large-scale business entities which carry out
business activities. Due to their large scales, their demands for products and
services of commercial banks are also much higher than those of other enterprises.
In addition, meeting the satisfaction of FDI enterprises is also the goal that
commercial banks in our country are aiming at due to the large potentials of these
enterprises.
1.2 Satisfaction of FDI enterprises towards the products and services of
commercial banks
1.2.1 Concept and measurement of satisfaction
Concept
Customer satisfaction is the state/ perception of customers towards the
service providers after using the services (Terrence Levesque & Gordon H. Mc
McDougall, 1996).
Oliva, Oliver, and Bearden (1995) argue that customer satisfaction is the task
of an organizational expressed through the relationship between the values of the
products or services and the customers’ expectations towards them.
Parasuraman et al. (1988) and Spreng et al. (1996) point out that customer
satisfaction is a customer’s reaction to the difference between the known experience
and expectations. That is, the customer's experience in using a service and the
results after the service is provided. In other words, customer satisfaction is the
customers’ mood, perception of the products when their expectations are met or
exceeded during the life cycle of the products or services. Satisfied customers will
be loyal and continue to use the products of the organization.

8


Zineldin (2000) states that customer satisfaction is the emotional response/
perception of a customer to a service provider on the basis of comparing the
difference between what they receive and what they expected.
According to Forbes (2008), satisfaction has a positive impact on the
following activities: Loyalty, Share of wallet, Word-of-mouth and cost efficiencies.
Kotler (2000) argues that satisfaction is determined by comparing the results
obtained from the service and the expectations of the customers on the following
three levels: If the results are less than expected, customers will be dissatisfied; If
the results are as expected, customers will be satisfied; If the results are more than
expected, customers will be very satisfied and enjoy the service.
Meanwhile, Susmita Sharma (2002) states that customer satisfaction is
associated with the following factors: Feelings / attitudes towards service providers;
Customer expectations about the ability to meet the needs of service providers; Service
performance/ values provided by the service; Intention to continue using the service.
Based on the concepts of customer satisfaction above, the author defines the
satisfaction of FDI enterprises towards banking services as the attitudes and
perceptions of FDI enterprises towards the quality of products and services that
commercial banks provide. Commercial banks always strive to improve the satisfaction
of customers in general and FDI enterprises in particular in order to increase the
number of FDI enterprises using products and services provided by the banks.
Methods of measuring customer satisfaction towards banking services
- Measure regularly to collect information from each customer when
delivering products and services. This measurement method helps to capture
customers’ opinions right away and make timely corrections to inappropriate points.
- Research periodically to collect information from different customer groups
at different time periods after delivering products and services. This measurement
method captures customers’ expectations and experience but is not regular.

- Directly measure key customer groups: This method is conducted through
interviews, meetings with key customer groups of commercial banks. The main tool
for conducting discussions among the key customer groups is the leading of the
9


chairperson. A variety of survey questions and issues to be discussed will be
arranged in a logical sequence. The chairperson uses instructions to suggest
participants to express their opinions and experience as many as possible. However,
the chairperson must ensure that the discussion does not go into other direction.
- Measure by questionnaire via mail
This method is very convenient for customers because they can control the
contents in the survey form, so they are often more willing to respond. Also, clear
and specific question will make it easier for them to answer.
If the questionnaire is longer than one page, the response rate will be lower.
So it needs to be well presented to attract customers’ attention and not make them
boring.
The organization must better prepare the customer database so that it is easy
to recognize and identify the type of customers that needs to be sent.
1.2.2 Characteristics of banking services
1) The process of providing and consuming banking services takes place
simultaneously
The process of providing and consuming banking services is carried out
simultaneously. Especially, there is direct participation of customers in the process
of providing services. At the same time, each service follows a certain process that
can not be divided into different types of services such as appraisal procedures and
loan procedures. This means banking services can not be stored but areprovided
directly to the customers on demand. Therefore, banks often create, maintain and
develop relationships with customers and other banks by improving the quality of
services, developing customer care activities of the bank staff and modernizing the

supply system to create the special characteristics of these services.
2) Banking services are unstable and uncertain
Banking services are not heterogeneous. The services are closely linked to
the process of service delivery of commercial banks. Therefore, the quality of
banking services depends on service transaction staff (qualifications, skills, etc.).

10


Moreover, with the same service transaction staff, the quality of banking services
sometimes changes over time.
(3) Banking services are unstorable
The banking services of commercial banks are invisible and therefore can
not be stored. Meanwhile, the demand for services often fluctuates but but the banks
can not produce and store when the demand suddenly rises. For example, the
services of payment and money transfer at the end of the year are huge, but the
banks must increase their means as well as human resources to ensure the most
effective transactions. Therefore, the costs of banking services must be relatively
high to meet the needs and satisfaction of customers.
4) Banking services are invisible
This is the main characteristic to distinguish banking services from the
services of other material industries in the national economy. Banking services can
not be seen, felt, heard before buying them like any other services. Customers
coming to the banks can not know for sure whether their money is safe or not or
whether the payment to them is on time. Therefore, to overcome this limitation, the
business of the banks must be based on trust. The operations of the banks must
focus on strengthening and creating trust to customers using services by improving
the quality of services, increasing the visibility of services, increasing the banks’
images, prestige and facilitating customers to participate in propaganda activities for
the banks.

1.2.3 Research models of customer satisfaction towards the quality of commercial
banks’ services
1.2.3.1 SERVQUAL model (Parasuraman, 1988)
This is the most common research model on service quality used in
marketing research. According to Parasuraman, service quality can not be
determined in general but depends on customers' perception of the service and this
perception conseidered on many factors. The success of the model is a great
breakthrough for economic organizations in general and commercial banks in

11


particular to apply to improve their service quality. The quality assessment must be
based on the perception of customers who use the services of the bank.
The SERVQUAL model is built based on the perceived service quality
which is the comparison between the expected values and the values perceived by
customers.
The SERVQUAL model considers two key aspects of service quality
including service result of and service provision which are studied through 22 scales
of five criteria: Reliability, responsiveness, tangibles, assurance, and empathy.
Tangibles

Reliability

Customer
satisfaction

Responsivenes
s
Assurance

Empathy

Figure 1.2 SERVQUAL model of customer satisfaction
Reliability
Reliability refers to the ability to provide accurate, punctual and reliable
services. This requires the consistency in service performance and respect of
commitments and promise of the bank to customers.
Responsiveness
This component measures the ability to quickly solve problems, effectively
handle complaints, be ready to help customers and meet customer requirements. In
other words, service efficiency is the response from the bank transaction staff to
what customers want.
Tangibles
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Tangibles are the external images of the bank's facilities, equipment,
machinery, staff manners, documentation, manuals and communication systems. In
general, everything that customers see directly with their eyes and senses can
influence this factor.
Assurance
This factor creates credibility and trust to customers through professional
service, good professional knowledge, elegant manners and good communication
skills of the bank’s staff. All of these elements make customers feel secure
whenever they use the bank’s services.
Empathy
Empathy is the concern and care towards customers, giving customers the
best treatment which makes them feel that they are always respected and warmly
welcome at anytime. Human factor is the key to this success. The more the bank
cares about the customers, the more the empathy is.‹

1.2.3.2 CBSQ model of Xin Guo et al. (2008)
With the aim of assessing all types of banking services and comparing the
level of expectations and perceptions of corporate customers about the types of
services provided by the banks, Xin Guo et al. (2008) built a model of service
quality measurement consisting of 31 observed variables with 7 components: (1)
Reliability; (2) Empathy; (3) Facilities; (4) Human capital; (5) Access; (6)
Technology; and (7) Communication based on the SERVQUAL measurement tool
and results of in-depth interviews with 18 financial managers to measure service
quality of wholesale banks in the Chinese financial market.
After examining the expectations and perceptions of corporate customers
using banking services at Chinese banks, Xin Guo et al. (2008) proposed a model
for measuring the service quality called CBSQ (Chinese Banking Service Quality)
with 20 observed variables belonging to 4 components as follows:

13


Reliability

Human capital

Customer satisfaction

Technology

Communication

Figure 1.3: CBSQ model of Xin Guo et al. (2008)
The components in the CBSQ model are explained as follows:
Reliability: Showing the ability to perform promised services accurately and

reliably.
Human capital: Showing issues related to employees’ appearance,
understanding about customers, and professional skills.
Technology: Showing the application of modern technology, especially
information technology, into banking services.
Communication: Showing communication channels between the banks and
corporate customers, including access to banking services.
Of the four components mentioned above, two components of "reliability"
and "human capital" belong to the functional quality and two components of
"technology" and "communication" belong to the technical quality.
1.2.3.3 FSQ and TSQ model (GrÖnroos, 1984)
According to Grönroos, quality of services in general and quality of banking
services in particular are considered based on two criteria: Functional Service
Quality (FSQ) and Technical Service Quality (TSQ). At the same time, the quality
of banking services is strongly influenced by the bank image. Grönroos outlined
three factors that affect customer satisfaction towards the quality of banking
services including functional quality, technical quality and bank image (FTSQ
model for short).
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Expected

Customer

Perceived

services

satisfaction

services

Bank image

Functional quality

Technical quality

Figure 1.4 FTSQ model (GrÖnroos, 1984)
Technical quality
This is the quality that customers receive through contact with the bank and
is perceived as important to the customers. In other words, technical quality is the
result of the interaction between the bank and customers, which is the real values
that customers receive from the bank. There are five criteria for factor assessment
including: Problem solving ability; Professional skills; Operational level; Modern
equipment; and Information storage system.
Functional quality
Functional quality demonstrates the process of service delivery by the bank
or reflects how services are provided. In the correlation between these two aspects
of quality, functional quality plays a more important role as reflected in the
following seven criteria: Convenience in transaction; Behavior; Serving attitude;
Organization; Contact with customers; Serving style; and all-for-customer motto.
Bank image
The bank image is understood as the general perception/ impression of
customers on the brand of the bank. Accordingly, if the bank creates a good image
in customers’ heart, they will easily overlook the shortcomings in the process of
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using services. Grönroos also pointed out that the bank image is an invaluable asset
and has a positive impact on customers' assessment of service quality, product value
and their satisfaction.
Moreover, the bank image also helps customers become more confident in
the bank and becomes loyal customers of the bank (Andreassen & Lindestand,
1998). Thus, the bank image has an impact on customer satisfaction. Customers
who regularly use the bank’s services will have a better sense of bank image than
other customers (Johnson, Fornell, Andreassen, Lervik, & Cha, 2001).
The bank image helps to make the relationship between customers and credit
institutions better and more sustainable. In addition, a good or bad bank image is
evaluated through customers’ perception of the bank and comparison of the bank
image with that of other competitors. However, the impact level depends on each
specific bank.
1.2.2.4 Research model of Do Tien Hoa (2007)
When researching the satisfaction of corporate customers towards banking
service quality, Do Tien Hoa developed a research model based on the inheritance
of researches on service quality as well as the customer satisfaction by Parasuraman
(1988), Cronin and Taylor, (1992) and Grönroos1 (984). The inheritance of scales
in previous studies helped the author build a research model that included the
following factors:
(1) Convenience: Convenience is expressed through the network of
transaction points of the bank. Conveniently located transaction points will create
satisfaction for customers.
(2) Tangibles: The system of facilities, layout of documents, brochures,
transaction space and transaction staff are all the factors that create satisfaction for
customers.
(3) Serving style of the staff: This is reflected in the satisfactory resolution of
customer complaints, in professional qualifications and in the ability to effectively
solve customer queries with caring and gentle attitude towards customers.

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