Customer service, fast and efficient service, and friendly staff are important factors in evaluating a student bank.
According to Ph.D Parasanata K. Padhy and BN Swar (2009) in the study “A study on Customer Satisfaction and Service Gaps in Selected Private, Public and Foreign Banks”, the authors believe that factors such as tangibility, responsiveness, and empathy of commercial banks with foreign elements are more responsive than domestic banks.
In the US, Ugur Yavas, Emin Babakus, Nicholas J. Ashill in the study “What do Consumers Look for in a Bank? An Empirical Study” identified the factors that consumers consider in choosing a bank and the implementation of these factors by banks in the Southeastern United States. The results of the study showed that the factors: Staff, trust in the bank, fees and convenient bank location have an impact on choosing a bank in the Southeastern United States.
In Vietnam, Ha Nam Khanh Giao and Tran Hong Hai in the study "Factors affecting customer satisfaction using ATM cards of Vietcombank Vinh Long" published in Banking Magazine No. 16-8/2014 confirmed that price, network, reliability, and empathy have the same influence on customer satisfaction when using card services at Vietcombank Vinh Long.
Meanwhile, Nguyen Quoc Nghi in the study "Factors affecting the decision to choose a bank to deposit savings of individual customers" (2011) published in the Financial and Monetary Market Journal, No. 18 (339) showed that there are three factors affecting the decision to choose a bank of customers in the Mekong Delta region to deposit their savings: trust, tangible means and responsiveness.
In summary, the factors affecting customer satisfaction are very diverse and are determined differently depending on the research field ( Refer to Appendix 2 - Previous studies related to the topic). Therefore, these studies are the basis for
Identify factors affecting customer satisfaction with savings deposit services at Dong A Bank.
1.3.2 Proposing factors affecting customer satisfaction with savings deposit services at Dong A Bank
Based on the results of studies on factors affecting customer satisfaction with savings deposit services conducted in many different countries in the past, the author proposes the following factors affecting customer satisfaction with savings deposit services at Dong A Bank:
Table 1.1 Factors expected to influence customer satisfaction with savings deposit services
STT
Factor | Criteria | |
1 | Bank brand | - Reputable bank - Long-standing bank operating in the area |
2 | Financial benefits | - Interest rate - Service costs - Promotional programs, customer gifts |
3 | Safety | - Financial situation of the bank - Secure customer financial information - Impressive and secure branch system |
4 | Convenience | - Large transaction network, convenient to travel - Suitable transaction time - Widespread ATM system - Convenient and safe parking.. |
5 | Products and services | - Diverse products - Transaction process and time - Procedures and documents - Troubleshooting |
6 | Staff | - Service attitude of staff - Working style - Consulting knowledge and skills |
7 | Introduction | - Introduction from friends and acquaintances - Advertising programs |
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(Source: From author's synthesis)
1.3.2.1 Factors of Bank Brand
Bank brand is the customer's perception of the bank. Normally, a bank with a brand, reputation, long-term operation in the area,... will create a good image of the bank. In the banking sector, bank brand plays a very important role in determining customer satisfaction with savings deposit services, so banks need to position and build their image and brand based on important attributes to establish the best perception in customer perception compared to competitors, helping customers easily recognize the brand. If a bank has a better brand image, it will attract more customers to transact.
1.3.2.2 Financial Benefits Factor
The financial benefit factor is assessed through three criteria:
- Interest rates are always an important factor affecting the behavior of individual customers in choosing a bank to deposit savings. Many customers, before depositing savings, will spend time researching the interest rates of banks to make the right choice.
- Service fee is the cost that customers have to pay to use banking products and services. When individual customers come to the bank, they not only save money but also transact in many other areas such as financial proof, money transfer... so service fee can be something that customers care about when choosing a bank to save money.
- Promotional programs and gifts for customers are programs applied to customers who deposit savings at the bank such as lucky draw, gratitude gifts... This is also one of the criteria that customers consider when depositing savings.
1.3.2.3 Safety Factor
In addition to the financial benefits, the purpose of customers saving at banks is also because this is a fairly safe investment channel, so customers always require banks to have a solid financial foundation.
In addition, transactions and savings deposits directly related to customers' financial resources are often quite sensitive, so customers require confidentiality when making transactions at the bank.
In addition, the bank has a system of branches and transaction offices, and security also gives customers a sense of security when depositing money.
1.3.2.4 Convenience Factor
Location factors also affect customer psychology. A bank located in a convenient location such as a central area, with convenient transportation, and a spacious and safe parking lot helps attract more customers. Moreover, customers using savings products need to pay interest into their accounts and withdraw money at ATMs, so a large number of ATMs will satisfy customers.
Besides, the bank's suitable working hours are also a factor that helps attract more customers. Especially for customers who are office workers and civil servants, the bank's opening after hours is one of the competitive advantages of the bank in the current period.
1.3.2.5 Product and service factors
Product and service factors are evaluated through four criteria: product variety, procedures and documents, processes, transaction time, and problem handling.
A bank with many savings products with many terms and many forms of interest payment suitable for many subjects will attract more customers. In addition, when customers come to the bank, in addition to the need to deposit savings, they can also use many other services such as money transfer, loans, electricity and water bill payment, receiving remittances, etc. Therefore, diverse and rich products and services with clear and accurate information are factors worth considering when using savings services at a bank.
When making transactions, customers want to do it as quickly as possible, so simple procedures and processes to shorten transaction time will make customers more likely to save.
Any system can have problems, so if there is any subjective or objective problem, customers can immediately contact the bank to handle the problem, answer questions is also one of the advantages for banks to attract customers.
1.3.2.6 Staff Factors
The service style and attitude of the staff is shown through the friendly and polite attitude when welcoming customers, the professionalism in resolving requests and handling situations of the staff. Customers will feel close and maintain the relationship with the bank through the use of products and services if the bank staff shows friendliness, politeness and respect in communication.
In addition, to convince customers to save money at the bank, the knowledge and consulting skills of the staff are very important. A customer may agree to save money at a bank with lower interest rates but has a team of staff with good explanation and consulting skills to help satisfy the customer.
1.3.2.7 The Referral Factor
Vietnamese culture is a culture of word of mouth, so referrals from acquaintances can help customers access information more quickly and easily, so referrals also play an important role in customer satisfaction with savings deposit services.
- Through the bank's advertising programs on the internet, television, newspapers... will also help customers recognize the bank in the process of choosing their bank.
The above factors have been tested through previous studies. However, because most of the studies were conducted abroad at different times with different banks. Therefore, the results need to be checked for appropriateness as well as adjusted and supplemented through preliminary research before being used to determine the factors that really affect customer satisfaction with savings deposit services.
1.4 Proposed research model and research hypothesis
1.4.1 Proposed research model
Based on theoretical basis and previous studies, the author proposes the following research model:
- Dependent variable is: customer satisfaction with savings deposit service
- Independent variables include: Bank brand, Financial benefits, Safety, Convenience, Service products, Staff and Introduction.
NH brand
Financial benefits
Products and services
Safety Convenience
Customer satisfaction
Staff
Introduction
Figure 1.2 Proposed research model
(Source: From author's synthesis)
1.4.2 Research hypothesis
From the above research model, the author puts forward the following research hypotheses:
H1: Dong A Bank's good brand and reputation will increase customer satisfaction with savings deposit services at Dong A Bank (+)
H2: Dong A Bank brings many financial benefits to customers, which will increase customer satisfaction with savings deposit services at Dong A Bank (+)
H3: The sense of security that Dong A Bank brings will increase customer satisfaction with savings deposit services at Dong A Bank (+)
H4: Dong A Bank creates convenience for customers, which will increase customer satisfaction with savings deposit services at Dong A Bank (+)
H5: Dong A Bank has good products and services which will increase customer satisfaction with savings deposit services at Dong A Bank (+)
H6: Dong A Bank has a team of staff that creates a good impression, which will increase customer satisfaction with savings deposit services at Dong A Bank (+)
H7: Better introduction of Dong A Bank will increase customer satisfaction with savings deposit service at Dong A Bank (+)
CONCLUSION OF CHAPTER 1
In chapter 1, the theoretical basis of savings deposits and an overview of factors affecting customer satisfaction with savings deposit services have been systematized. Based on the theory and previous studies related to the topic, the author proposes a research model of factors affecting customer satisfaction with savings deposit services at Dong A Bank, including 7 factors as follows: Bank brand, Financial benefits, Safety, Convenience, Products and services, Staff and Introduction. From that proposed model, the author proposes research hypotheses that all of the above factors have a positive relationship with customer satisfaction with savings deposit services at Dong A Bank.