Research about factors affect to customers’ satisfaction when using atm card products at Donga bank Tan Binh branch Ho Chi Minh City

OUM
OPEN MALAYSIA UNIVERSITY

RESEARCH PROJECT
(BMBR5103)

RESEARCH ABOUT FACTORS AFFECT
TO CUSTOMERS’ SATISFACTION
WHEN USING ATM CARD PRODUCTS
AT DONGA BANK, TAN BINH BRANCH,
HO CHI MINH CITY
STUDENT’S FULL NAME

: VO HUYNH DUC

STUDENT ID

: CGS00064987

INTAKE

: MARCH, 2016

ADVISOR'S NAME & TITLE

: DR. BUI PHI HUNG

AUGUST, 2017


Advisor’s assessment

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Advisor’s signature


CONTENTS
Chapter I: Introduction……………………………………………………………….1
1.1

Research background.............................................................................................1

1.2

Objectives of the study...........................................................................................1

1.3

Research Methodology...........................................................................................2

1.4

Subjects and scope of study....................................................................................2

1.5

Structure of the Paper.............................................................................................3

1.6

Structure and content of research topics.................................................................3

Chapter II: Literature review.........................................................................................4
2.1

Payment card overview.........................................................................................4

2.1.1

Some basic concepts about payment cards...........................................................4

2.1.2

Card classification.................................................................................................4

2.2

Utilities when using the card.................................................................................4

2.3

Process of issuance, payment by ATM card.........................................................5

2.4

Consumer behavior........................................................................... ...................6

2.5

Customer satisfaction index model ......................................................................6

2.5.1

Building the model................................................................................................7

2.5.2

Method of measurement of satisfaction indicators..............................................10

2.5.3

Application of customer satisfaction index in strategic planning.........................11

2.5.4

Customer satisfaction............................................................................................11

2.5.5

Service quality......................................................................................................12

2.5.6

Parasuraman service quality distance model........................................................12

Chapter III: Research Methodology..............................................................................14
3.1

Research design..................................................................................................14

3.1.1

Collect information.............................................................................................14

3.1.2

Research Methods...............................................................................................15

3.1.2.1

Preliminary research...........................................................................................15

3.1.2.2

Formal study:......................................................................................................15

3.2

Develop ATM service quality scale....................................................................16

3.3

Develop a measure of customer satisfaction:......................................................17

Chapter IV: Analysis and Research Results ................................................................23


4.1

Scale analysis.....................................................................................................23

4.1.1

Cronbach's alpha scale analysis.........................................................................23

4.1.2

Factor analysis...................................................................................................26

4.2

Accreditation of theoretical models...................................................................28

4.2.1

Pearson correlation coefficient analysis.............................................................29

4.2.2

Regression analysis............................................................................................30

4.2.3

Evaluate the quality of ATM card services currently offered by DongA Bank,

Tan Binh Branch……………………………………………………………………........33
4.2.3.1

About service efficiency and customer support................................................33

4.2.3.2

On tangible means.............................................................................................34

4.2.3.3

About credibility...............................................................................................35

Chapter V: Conclusion and solution .............................................................................37
5.1

The proposal effectively serve and support the client.....................................37

5.2

Conclude.........................................................................................................39

References........................................................................................................................ 40

FIGURE
Figure 1: Card payment process
Figure 2: Model 5 stage decision making to purchase goods or services
Figure 3: American Customer Satisfaction Index – ACSI
Figure 4: European Customer Satisfaction Index – ECSI
Figure 5: Theoretical model of satisfaction indicators of banks
Figure 6: Strategic planning model for customer-centered customer satisfaction
Figure 7: Service quality model (Parasuraman, 1988)


TABLES
Table 3.1: Sample sex information
Table 3.2: Age sample information
Table 3.3: Sample Information on educational level
Table 3.4: Sample information on personal income
Table 4.1: Results of the Cronbach's alpha coefficient analysis
Table 4.2: Results of the analysis of the factors of the service quality scale
Table 4.3: Results of factor analysis of customer satisfaction scale
Table 4.4: Correlation matrix between variables
Table 4.5: Results of multiple regression analysis

ACRONYMS
DongA Bank: Joint stock commercial bank of East Asia
TC: Reliability
HQ: Effective

NL: Capacity
DC: Empathy
PT: Tangible Media
HL: Satisfaction


Vo Huynh Duc

CHAPTER I: INTRODUCTION
1.1. Research background:
The bank card market in Vietnam is currently developing very vibrant, especially
domestic debit cards (ATM cards) with more than 40 banks involved in issuing these cards,
including state-owned commercial banks, Joint stock commercial banks, joint venture
banks and foreign bank branches. With a population of over 80 million and a young
population structure, Vietnam is considered a potential market for the development of this
modern service. Therefore, the tough competition between banks will inevitably take place
to attract target customers to their banks. Therefore, in order to improve competitiveness
and expand market share, researching customer satisfaction when using ATM card services
is an important issue that needs to be paid due attention.
At DongA Bank, Tan Binh Branch, there is no formal study related to the quality of
ATM card services provided and the level of customer satisfaction when using these card
services. The bank, as a service provider, must be responsible for providing quality
products, regard customers as subjects, the one who bring the income to the bank itself.
As for customers, they have a product of their choice that can meet and satisfy their
requirements.
In the future, the use of non-cash payment services will become popular and close
to the people of Vietnam, especially card services. Therefore, banks that want to maintain
and develop this service need to accurately measure the quality of their card services,
thereby improving their ability to meet the increasing demands of their customers.
1.2. Objectives of the study:

This study provides an overview of the ATM cards of DongA Bank and thereby
assesses the quality of ATM card services offered by DongA Bank. The objective
evaluation of customers has an important significance to help the bank go in the right
direction to improve the quality of ATM card related services.
Specific objectives include:

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