Financial Relationship Marketing Components Scale

financial relationship marketing book. Based on the theoretical foundation and measurement scale of financial relationship marketing from previous studies, this scale was built on the basis of the research of Hsieh, Y. et al. (2005); and Lin, N. et al. (2003) including 05 observed variables. On the other hand, through in-depth interviews (face-to-face) with experts of commercial banks in Quang Ngai province, the relationship marketing scale was supplemented with 02 observed variables shown in Table 4.5.

Table 4.5. Scale of financial relationship marketing components

Symbol

Scale Description	Note
FB1	Can I receive gifts when using bank X's services?	Hsieh,Y. et al. (2005); Lin, N. et al. (2003)
FB2	Bank X offers discounts or better priced products/services to encourage customers to use the service in the future.
FB3	Bank X offers discounts or better priced products/services to loyal customers.
FB4	Bank X offers loyalty programs to customers.
FB5	Bank X provides fast service to regular customers.
FB6	Bank X offers many promotions for customers.	Opinion expert
FB7	Bank X is associated with other business organizations that provide me with Non-financial products/services on sale	Opinion expert

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4.4.4.2. Social Bonds Marketing Scale (Symbol is SB)

Social relationship marketing is the personal relationship or bond created during the interaction between buyers and sellers (Berry, LL, 1995). These include feelings of familiarity, personal recognition, friendship, acceptance, similarity, rapport and social support between customers and service providers (Berry, LL, 1995). At this level, customers are seen as “customers, not nameless faces” (Zeithaml, VA & al., 2003) and become individuals who need the company to understand their preferences and personalities. Therefore, personalization and customization are used at this level. It is essential to maintain regular contact with customers and to show them friendship, cooperation and social support throughout the service experience (Berry, LL, 1995; Berry, LL & Parasuraman, 1991), the role of the salesperson is no longer that of a traditional persuader but that of a relationship manager (Crosby, LA & associates, 1990).

Sales must proactively maintain regular contact with customers, develop a deep understanding of customer needs, and recognize the uniqueness of each customer (Dibb, S. & associates, 2001).

Thus, social relationship marketing is personal relationships that focus on understanding customer needs, keeping in touch and maintaining positive relationships with customers (Berry, LL, 1995). This perspective is used in the thesis.

Based on the theoretical foundation and measurement scale of social relationship marketing from previous studies, this scale was built on the basis of the research of Hsieh, Y. et al. (2005); and Lin, N. et al. (2003); Zeithaml, VA et al., (2003); and Berry, LL (1995) including 07 observed variables shown in Table 4.6.

Table 4.6. Scale of social relationship marketing components

Symbol

Scale Description	Note
SB1	Bank X keeps in regular contact with me.	Lin N. et al.
SB2	Bank X showed concern and understanding of my needs.	(2003);
SB3	I received special treatment from bank X.	Hsieh, Y. and
SB4	Bank X sends me greeting cards on special occasions.	Associates (2005);
SB5	The manager/employee of bank X knows me.	Zeithaml, VA
SB6	Bank X sponsors social activities for customers	and associates
SB7	Bank X staff/managers help me solve personal problems	(2003); Berry,

4.4.4.3. Structural Bonds Marketing Scale (Symbol is StB)

Berry, LL (1995) proposed that structural relationship marketing is created by providing customers with value-added systems that customers cannot build or use themselves and are not available elsewhere. Creating structural relationship marketing activities often requires investment from customers, such as time and effort and/or personal data entry (Hsieh, Y. et al., 2005).

Structural relationship marketing occurs when a firm enhances its relationships with customers by designing solutions to customer problems into its service delivery system. These solutions are valuable to the customer and are not available from other sources (Berry, LL, 1995). For example, a firm may provide integrated services with partners, or provide new products/services tailored to customer needs.

From a study of the retail banking industry, Dibb, S. et al., (2001) found that some firms have invested in relationship marketing structures such as innovative channels, integrated customer databases, and two-way communication technologies. These investments provide customers with a more convenient and customized environment to use services and are seen as an important advantage over competitors. This view is inherited from Berry, LL (1995).

Based on the theoretical foundation and measurement scale of structural relationship marketing from previous studies, this scale is built on the basis of the research of Hsieh, Y. et al. (2005); and Lin, N. et al. (2003); and Dibb, S. et al. (2001) including 07 observed variables shown in Table 4.7.

Table 4.7. Scale of structural relationship marketing components

Symbol

Scale Description	Note
StB1	Bank X offers customized products/services according to needs	Hsieh &
	mine	partner
StB2	Bank X provides good after-sales service to me.
		(2005);
StB3	Bank X provides me with professional knowledge about its products/services.
		Lin & co
StB4	Bank X often offers new products/services.	(2003);
StB5	Bank X offers a wide range of products/services for me to choose from.	Dibb &
StB6	Bank X provides me with multiple transaction facilities to process. transactions, e.g. telephone, electronic banking	McDows
		(2001)
StB7	Bank X gave me a prompt response when I complained.

In summary, based on the scales synthesized from previous studies, the author combined with qualitative research to supplement and adjust the scale to suit the operations of commercial banks in Vietnam. Therefore, a first expert interview was conducted with participants who were commercial bank managers in Quang Ngai province (Appendix 2). When the comments were saturated, the study recorded the number of members contributing useful comments was 9 people. The results of the expert interview were synthesized and analyzed, showing that 7 respondents had the same opinion on the financial relationship marketing policy. That is, the bank provides many

promotions for customers and banks that cooperate with other business organizations to provide discounted non-financial products/services to customers. Therefore, the questionnaire used for the preliminary investigation was added to these two observation variables to conduct the investigation.

And to make the investigation go smoothly with a short and easy-to-read questionnaire, the second focus group discussion was conducted with participants who were customers using commercial bank services in Quang Ngai province (Appendix 3). Finally, the survey questionnaire in the preliminary investigation program was formed (Appendix 4).

With the construction of the scale as above, the author proceeded to build a questionnaire. The questionnaire aimed at the content "The impact of relationship marketing on customer loyalty: The case of commercial banks in Quang Ngai province".

4.5. Preliminary investigation to evaluate the scale

4.5.1. Design of preliminary survey questionnaire

The preliminary survey questionnaire is designed with 2 parts:

Part 1 is general information about customers, focusing on surveying demographic variables and experience using banking products and services applied to the survey subjects. The research results of this part show us general information about customers, about their experience, level, frequency, and type of products and services used by customers. The questions are built in a selective and simple way.

Part 2 is a set of questions aimed at understanding the views and opinions of customers participating in the interview on relationship marketing factors, satisfaction, switching costs and customer loyalty. The questions in this part are developed based on the inheritance of foreign authors. However, to suit the conditions of Vietnam, the questions have been translated and adjusted to suit the Vietnamese writing style. The questions in this part will use a 5-point Likert scale - a scale commonly used to measure the level of opinion. Each point in this scale will indicate the level of agreement of the respondent with

research viewpoints. Respondents' viewpoints will range from level 1 = Strongly Disagree, level 2 = Disagree, level 3 = Neutral, level 4 = Agree, level 5 = Strongly Agree.

The questionnaire is presented in detail in Appendix 4 and was conducted on individual customers of commercial banks in Quang Ngai province.

4.5.2. Description of the survey program and survey sample

Preliminary research program using quantitative research method was conducted with the number of questionnaires issued: 130, the number of questionnaires received: 115.

Survey sample: The survey sample consists of individual customers who are using banking services. However, when conducting a survey on the relationship and impact of relationship marketing in the banking industry, after selecting the sample unit, it is necessary to select the information provider/interviewee. That is, it is necessary to select a representative of the sample unit to participate in the interview to provide information for the study.

Interview subjects: Individual customers using Vietnam Joint Stock Commercial Bank services in Quang Ngai province.

Investigation method: Direct survey through questionnaire.

Time of investigation program implementation: From September 1 to September 30, 2017.

4.5.3. Descriptive statistical results

During the 1-month investigation period (from September 1 to September 30, 2017), 140 questionnaires were distributed for direct interviews to customers of joint stock commercial banks in Quang Ngai province.

The interview sample used a convenience approach. The subjects were individual customers who are transacting at Vietnamese commercial banks. Those who have never used or accessed the products and services of Vietnamese commercial banks are not within the scope of this study.

At the end of the survey, the number of completed interview questionnaires collected was 115, reaching a rate of 82.14%. The interview sample structure was diverse.

The structure of the survey sample is divided and statistically analyzed according to criteria such as gender, marital status, age, education level, average monthly income, occupation, place of residence, time of service use, number of products and services used, number of commercial banks used and level of product and service use. The descriptive statistical results are shown in detail in Table 4.8.

Table 4.8. Sample structure in the preliminary research program

STT

Sample information	Quantity	Percentage
1	Total number of samples	115	100
2	Sex
	Male	47	40.9
	Female	68	59.1
3	Marital status
	Single	20	17.4
	already family	95	82.6
4	Age group
	Under 22 years old	14	12.2
	22 to 44 years old	55	37.4
	45 to 60 years old	43	47.8
	Over 60 years old	3	2.6
5	Education level
	University, postgraduate	44	38.26
	College, secondary school	40	34.78
	High School	18	15.65
	Other	13	11:30
6	Job
	Expert	3	2.6
	Teachers, civil servants	20	17.4
	Business	27	23.5
	Student	10	8.7
	Retirement	19	16.5
	Other	36	31.3
7	Income/month
	Under 5 million VND	17	27.8
	From 5 million to under 9 million VND	32	14.8
	From 9 million to under 15 million VND	25	21.7
	From 15 million to under 20 million VND	18	15.7
	From 20 million VND or more	23	20.0
8	Structure by place of residence
	Urban	76	66.1
	Countryside	39	33.9
9	Number of banks used
	1 bank	8	7.0

2 banks	71	61.7
3 banks	19	16.5
4 banks	12	10.4
5 banks	5	4.3
Over 5 banks	0	0
10	Structure of products and services used
	Capital raising	20	17.4
	Loan	21	18.3
	Guarantee	5	4.5
	Card Services	54	46.9
	Domestic payment services	19	16.8
	International payment services	9	7.4
	Forex trading	2	1.7
	Internet banking/mobile banking services	46	40.0
	Other services	9	8.0
11	Level of product and service usage
	More than once a week	115	100
	Once a week	0	0
	Less than once a week	0	0
12	Bank type
	State Commercial Bank	27	23.3
	Private Commercial Joint Stock Bank	20	17.4
	Use both types of banks	68	59.3

(Source: Data analysis results)

- Gender structure: Of the 115 returned questionnaires, 47 participants were male, accounting for 40.9%, and 68 were female, accounting for 59.1% of the survey participants.

- Marital status structure: Of the 115 samples, the majority of the sample was married with 95 people accounting for 82.6%, the number of unmarried people was 20 people accounting for 17.4% of the number of survey participants.

- Age structure: The age of the research sample is young with 55% of the survey participants being of working age from 22 to 44 years old. The age group under 22 years old accounts for 12.2% of the survey participants. The age group from 45 to 60 years old accounts for 37.4

%. Age over 60 years old accounts for 2.6%.

- Regarding education level: up to 38.26% of survey participants have university education or higher, 34.78% have college and intermediate education,

15.65% have high school education and 11.30% others. It can be said that the educational level of the survey participants using commercial bank products and services is very high. This is a great advantage for the study as these subjects will

have in-depth understanding and knowledge of the products and services they are using as well as their assessment of the service quality of joint stock commercial banks.

- Regarding income: Up to 27.8% of survey participants have an average income of 5 - 9 million VND/month, the number of people with income under 5 million is 14.8%, the number of people with a fairly good income from 9 - 15 million is 21.7%, the number of people with a high income from 15 - 20 million is 15.7% and the number of people with a very high income over 20 million is 20.0%.

- Occupational structure: The sample consists of people working in enterprises.

23.5% and other occupations account for 31.3%, the group of occupations of teachers and civil servants accounts for 17.4%, 8.7% of the sample are students. The number of samples are experts accounts for 2.6%, the rest are retirees accounting for 16.5% of the sample participating in the survey.

- Structure by residential area: Up to 66.1% of survey participants come from urban areas, only 33.9% come from rural areas. This ratio reflects the current urbanization trend, but still ensures diversity for the survey results.

- Regarding the number of banks used: Survey results show that 7.0% use only one bank, 16.5% use three banks, 10.4% use four banks,

4.3% use five banks, and 0% use more than five banks at a time. The number of people using two or more banks accounts for 61.7%.

- Structure of products and services used: The banking services used by the majority of survey participants are card services accounting for 46.9%, e-banking services at 40.0%, capital mobilization at 17.4%, domestic payment services at 16.8%, lending at 18.3%, international payment services at 7.4%, guarantee issuance at 4.5%, foreign currency trading at 1.7%.

- Regarding the level of product and service usage: all interview participants used commercial banking services more than once a week, accounting for 100%.

- Regarding banking types: 23.3% of customers use services of state-owned commercial banks and 17.4% of customers use services of private commercial banks. Of the 115 customers interviewed, 59.3% used services of both types of banks.

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