Building a Scale and Research Model of Factors Affecting Customers' Decision to Choose a Bank to Deposit Savings at

In the period of 2014 - 2018, the Joint Stock Commercial Bank in Da Lat city has achieved many remarkable results. However, the programs to attract customers to participate in saving at Joint Stock Commercial Banks have not brought about outstanding results, so the increase in the number of customers participating in saving in recent years is insignificant. Besides, there are still many customers who are hesitant and not interested in the savings deposit services of banks, due to the requirements of meeting the convenience of customers when transacting, the quality of staff, benefits from products, especially the development of science and technology makes banks also face many risks in terms of technology security, information security... Therefore, finding out the factors that affect customers' decision to choose a bank to deposit savings is of special interest to all banks, because this is the premise for banks to grasp the thoughts and aspirations of customers in order to develop appropriate development policies.

Chapter 2 Summary

Chapter 2 presents an overview of joint stock commercial banks in Da Lat city. At the same time, it analyzes the current situation and results of savings mobilization of 10 joint stock commercial banks in the city in the period 2014-2018.

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CHAPTER 3: BUILDING A SCALE AND A RESEARCH MODEL OF FACTORS AFFECTING CUSTOMERS' DECISION TO CHOOSE A BANK TO DEPOSIT SAVINGS AT JOINT STOCK COMMERCIAL BANKS IN DA LAT CITY

3.1. Theories and models of consumer choice behavior

3.1.1. Service quality

Quality concept

In each stage of production development, many definitions of quality have appeared.

According to the International Organization for Standardization, in ISO 8402: 2000 (Quality Management and Quality Assurance), quality is defined as the totality of characteristics of an entity that give that entity the ability to satisfy stated or implied needs.

According to the European Quality Control Organization, quality is the degree of conformity to consumer requirements.

According to French standards, quality is the potential of a product or service to satisfy the needs of the user.

According to professor PB Crosby, quality is fitness for purpose,

According to JM Juran - a famous American quality expert, quality includes product characteristics that meet customer needs and create customer satisfaction.

In short , quality is the ability of a set of inherent characteristics of a product, system or process to fulfill requirement of customers and other interested parties.

Service concept

There are many different concepts of service and service quality. Depending on the interests of researchers on different aspects of service and service quality, there are different concepts, but in general we

can summarize some main understandings as follows:

According to Zeithaml and Britner (2000, quoted in Bui Van Kim, 2009), services are behaviors, processes, and ways of performing a certain job to create value for customers to satisfy their needs and expectations.

According to Kotler and Armstrong (2004, quoted in Bui Van Kim, 2009), services are activities or benefits that businesses can contribute to customers to establish, strengthen and expand long-term relationships and cooperation with customers.

According to ISO 9000: 2000, the concept of the term product also means service, then products and services are generally defined as: "results of activities or processes" (Ta Thi Kieu An et al., 2004).

According to ISO 8402: “Service is the result generated by activities at the interface between the supplier and the customer and by internal activities of the supplier to meet customer needs” (ISO 8402).

In short, service is a process that includes back-end activities and front-end activities where customers and service providers interact with each other to satisfy customer needs in the way customers want and create value for customers.

Concept of service quality

Service quality is an abstract concept, difficult to grasp due to the unique characteristics of the service, the approach to quality is created in the process of providing the service, often occurring in the meeting between the customer and the service provider. There are many different views on service quality, so it is very difficult to give a unified definition of service quality. Service quality is defined in many different ways depending on the research object and research environment. Here are some concepts that are widely used in recent studies and are agreed upon by many people (quoted in Le Duc Tam, 2012).

Parasurman et al. (1985, 1988) define service quality as

The gap between customers' expectations of a service and their perceptions of the service they have received.

According to Asubonteng et al. (1996), service quality is a service that meets customers' expectations and satisfies their needs.

Thus, we can give a general concept of service quality as the gap between customers' expectations and perceptions of a service.

3.1.2. Customer satisfaction

Concept of customer satisfaction

Customer satisfaction is an important factor that determines customer choice. When customers feel satisfied with a product or service, they are likely to continue using that service and recommend that product or service to friends and relatives. Therefore, it can be said that any bank that satisfies customer satisfaction means that the bank has won. Therefore, when studying the factors that influence customer choice, satisfaction is one of the important aspects that cannot be ignored.

There are different concepts of satisfaction such as:

Satisfaction is the consumer's response to the evaluation of the discrepancy between prior expectations and their feelings after using the product (Tse and Wilton 1988).

Satisfaction according to Parasuraman (1994) is the combined result of Service Quality, Product Quality and Price.

According to Zeithaml and Bitner (2000): satisfaction is the process of customers' comments and evaluations of products or services, whether these products or services meet their needs and expectations or not.

Satisfaction is the level of a person's emotional state resulting from comparing the results obtained from a product with that person's expectations (Kotler, 2001), (quoted in Huynh Doan Thu Thao, 2010).

3.1. 3. The relationship between service quality and satisfaction

Most researchers believe that service quality and customer satisfaction are two distinct concepts and they are related to each other (quoted).

in Le Thi Thuy, 2009).

According to Olsen (2002), quality is an evaluation of attribute performance and satisfaction reflects the impact of performance on human sensory perception. Therefore, quality can be used to predict satisfaction or purchase behavior.

Thus, it can be said that quality is the decisive factor in customer satisfaction. To improve customer satisfaction, it is necessary to improve service quality.

3.2. Factors influencing consumer behavior

3.2.1. Psychological factors

Customers' purchasing decisions are influenced by four factors: motivation, perception, knowledge and beliefs and attitudes.

a. Motivation: In daily life at any time, people always have many needs that need to be met, however, people can divide needs into two types: instinctive needs and psychological needs, specifically, instinctive needs are hunger and thirst... psychological needs are the need to be recognized, admired... When these needs become strong enough, they will create pressure to direct people to satisfy those needs. When the needs are satisfied, people will feel comfortable and the stress will be reduced.

b. Perception: When people have motivation, they will be ready to act, but how that action is depends on that person's perception. When each person's perception is different, the action is also different. Each person's perception depends on individual characteristics, the impact of factors, and the correlation of factors with the general situation.

c. Knowledge : In life, people always act and when we act, we will acquire knowledge. When we have knowledge, each person's behavior will change.

d. Beliefs and opinions: Each person's beliefs and opinions are formed through the activities and knowledge that each person acquires,

At the same time, each person's beliefs and attitudes influence their shopping behavior.

Each person's beliefs are formed based on knowledge, trust, public opinion and can be influenced by emotional factors.

Before deciding to launch any product or service on the market, manufacturers need to pay attention to the beliefs that customers have about those products or services, beliefs that create the image of the product. In case that belief is not correct, manufacturers need to launch campaigns to correct that belief.

e. Attitude : People always have attitudes about everything happening around them. Attitude leads people to decide to like or dislike an object. Each person's attitude is often formed according to a unified pattern and is difficult to change. If you want to change an attitude, you need to change other attitudes.

3.2.2. Personal factors

Buyer decisions depend not only on motivation, perception, knowledge, beliefs, opinions and attitudes but also on each person's personal characteristics.

a. Age : Every person's life goes through 3 stages from childhood to adulthood and old age, at each stage their preferences for food, fashion and entertainment are also different. That is why manufacturers often create market segments and choose their target markets.

b. Occupation: Each person's occupation will greatly affect their shopping and consumption. Farmers will buy clothes and shoes, workers rarely consume luxury goods, but on the contrary, the director of a company often consumes expensive clothes and shoes. Therefore, manufacturers need to clearly identify which occupational groups may be interested in their products and services, thereby developing appropriate product development strategies.

c. Economic circumstances: The decision to choose a product depends a lot on each person's economic circumstances. Economic circumstances include income, deposits, etc. Each person has a different economic circumstance and when each person's economic circumstances are different, the decision to choose a product is also different.

d. Lifestyle: Lifestyle is the expression of a person through his or her views on life, interests, and actions. Each person has a different view on life. By focusing on lifestyle research, marketers gain an understanding of consumers' ever-changing values and the influence of those values on their purchasing behavior.

3.2.3. Cultural factors

A person’s behavior depends a lot on cultural factors. People born and raised in an environment will learn the values, preferences, and behaviors of that environment. Especially when Vietnamese people buy goods, they are greatly influenced by cultural factors that carry national identity such as color, style, advertising messages, etc. Therefore, manufacturers need to pay attention to these factors when producing products.

3.2.4. Social factors

A consumer's behavior is also influenced by social factors such as family, social roles and status, and reference groups.

a. Family : Family members have a strong influence on buyer behavior, so marketers need to consider and analyze which family member will have the most influence on each different product or service.

b. Role and status : Each person in society can participate in many different activities, in each of those activities they will participate in many groups such as many clubs, organizations... the role of that person in each group is different, in each role the consumer behavior is also different, because each role will be associated with a social status and that status will reflect the respect of society. Meanwhile, human psychology often tends to choose products that can highlight the role and

their status in society so manufacturers must clearly recognize the importance of expressing social status through products and brands.

c. Reference groups: Human consumption behavior is influenced by many groups of people and they are generally called reference groups. More specifically, people divide reference groups into two types of groups: member groups and admiration groups, in which member groups are groups that the person participates in and the members in the group are influenced by each other. Member groups include two groups: primary groups and secondary groups, in which the primary group is members who have close relationships with each other such as family, friends, colleagues. Secondary groups have little interaction with each other such as organizations, associations... In addition, people are also influenced by groups that they do not participate in but always want to be in, which are called admiration groups.

Reference groups will change a person's lifestyle, outlook on life and consciousness because he or she often wants to fit in, creating pressures to conform to common standards and can influence that person's choice of products and brands.

3.3. Overview of previous studies on customers' bank selection trends

3.3.1. Domestic research

Le Thi Kim Anh and Tran Dinh Khoi Nguyen, 2016. Research in Tuy Hoa City - Phu Yen. Research data was collected from 512 customers who have and are saving money. Descriptive statistics, Cronbach's Alpha testing, exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and structural equation modeling (SEM) were used in the research. Based on theoretical synthesis and quantitative research, the results of practical research in Tuy Hoa City, Phu Yen show that: (1) Safety; (2) Convenience;

(3) Service quality; (4) Financial benefits; (5) Promotional forms; (6) Image

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