The Role of Customer Satisfaction in Business Performance

It is also worth mentioning that in addition to classifying customer satisfaction, Bernd Stauss and Patricia Neuhaus also asserted that satisfaction levels also greatly influence customer behavior. Even if customers have the same positive satisfaction with a business but their satisfaction level is only at the level of "satisfied", they can still find other businesses and not continue to use the business's services. Only customers with the highest satisfaction level of "very satisfied" will certainly be loyal customers and always support the business.

Therefore, when researching customer satisfaction, businesses need to pay attention to making customers satisfied is very necessary, but helping them feel completely satisfied is much more important. For customers who are generally satisfied, they can leave the business at any time, while the group of customers who feel "completely satisfied" will be loyal customers of the business. This understanding will help businesses have flexible measures to improve service quality for different customer groups.

1.3.4. The role of customer satisfaction in business operations

In today's fiercely competitive environment, customer satisfaction plays a decisive role in the survival of a business, reflected in the following aspects:

When customers are satisfied with the products and services provided, they will become loyal customers of the business. This plays a decisive role in the business's production and business activities in the following aspects:

- Customers will tend to make repeat purchases.

- Good assessment of the business image

- Support new products and services of the business

- Increase transaction frequency to develop good relationships with businesses.

- Willing to recommend the service to others.

Thus, satisfied customers will not only return to use the business's services but also speak well of the business to others, and each of these people will speak well of the business to others, and this will increase the number of potential customers for the business, contributing to increased sales, market share, business profits and building a good image for the business in the hearts of customers (Jacob Kjaer Eskildsen (2007)).

1.3.5. Measuring customer satisfaction

To measure customer satisfaction, many authors such as Hausknecht (1990); McDougall, GHG, and Levesque (1994)... have proposed different criteria. However, to have a more accurate conclusion about customer satisfaction with GP. Bank, the author has used four criteria (synthesized from the studies of the above authors) as follows:

- Overall service quality

- Introduce NH to a third party

- Continue using NH services

- Customer satisfaction with the bank

1.3.6. Factors affecting customer satisfaction

1.3.6.1. Service quality

a. Concept of service quality

Since the 1930s, quality in the manufacturing sector has been identified as a competitive factor, but quality has really become important since World War II. The pioneers in this field are W.Edwards Deming, Joseph M.Juran and Kaoru Ishikawa. The service sector has only developed in recent decades. Therefore, defining, evaluating and managing quality in this sector all originate from the manufacturing sector. However, evaluating service quality is not easy, and there are still many controversies between theorists and researchers in defining and evaluating service quality. According to researchers, service quality is a concept with broad connotations, relatively subjective depending on the specific research object such as:

From the perspective of the manufacturer , service quality is the assurance of providing services according to the script (process, standards, etc.) with high professional skills of the supply staff and management team. This viewpoint has the limitation of not linking the supply service with the desires of the target customers.

The value-based view holds that quality is a function of value and price, by considering the proportional relationship between service features, created values, and price.

User perspective : According to this perspective, service quality is based on the perception and feeling of the service user. This perspective identifies quality with maximizing satisfaction. Different customers will have different satisfaction perceptions (Luu Van Nghiem (2008)). One of the concepts of quality that researchers often mention in their research is: Service quality is considered as the gap between service expectations and service received when customers use the service (Parasurman et al (1988)). Also from this perspective, Gronroos et al (1990) also said that service quality is determined by the comparison between expected service quality and received service and is influenced by the image of the business. Expected service is influenced by external factors such as the marketing activities of the business, lifestyle, culture to the service user. Perceived service is an internal factor that comes from the customer himself and is not affected by external factors.

In the scope of the thesis, the author evaluates quality based on the user's perspective. From this perspective, we can come to the following conclusion: Service quality is the level of customer satisfaction in the process of feeling and consuming the service.

b. Service quality characteristics

Although service quality has many definitions based on different perspectives, in general, service quality includes the following characteristics:

First, Transcendent

For customers, quality service is a service that demonstrates its "innate excellence" compared to other products. It is this superiority that makes service quality a competitive advantage for service providers. It must also be said that the assessment of the superiority of service quality is greatly influenced by the perception of the service recipient. This relationship has great significance for the assessment of service quality from the customer's perspective in marketing activities and customer satisfaction research.

Second, product characteristics (Product led)

Service quality is the sum of the most essential and quintessential aspects (units of goodness) crystallized in a product or service that create the characteristics of the product or service. Therefore, a high-quality service or product will contain more "superior characteristics" than a low-quality service. This distinction is associated with the identification of tangible or intangible superior attributes of the product or service. It is thanks to these characteristics that customers can recognize the service quality of a business that is different from that of its competitors. However, in reality, it is very difficult to identify the core characteristics of a service completely and accurately. Therefore, these characteristics do not have absolute value but are only relative, making it easier to recognize service quality in a specific case.

Third, process or supply led

Service quality is closely linked to the process of implementing/transferring services to customers. Therefore, service implementation, service style, and service delivery will determine whether the service quality is good or bad. This is an internal factor that depends on the performance of the service provider. Therefore, to improve service quality, the service provider must first know how to improve this internal factor to create its own long-term strength in providing services to customers.

Fourth, customer-led

Services are created to meet customer needs. Therefore, service quality must satisfy customer needs and customer requirements are the basis for improving service quality. If customers feel that the service does not meet their needs, they will not be satisfied with the quality of service they receive. It must also be said that in the modern business environment, this feature becomes more important than ever because service providers must always be customer-centric and try their best to meet those needs. It is useless and of no quality to provide services that customers evaluate as having no value.

In terms of "customer service", "demand satisfaction" includes the meaning of "supply". This is because although service quality begins when the enterprise grasps the needs of customers until the implementation of the service, it is during the process of providing the service that customers will feel satisfied.

feel satisfied or not and from there feel the service quality is good or bad. If the supply has internal factors (internal focus), the satisfaction of needs is more influenced by external influences (external focus).

Fifth, value led

Obviously, service quality is closely linked to the values ​​created to serve customers. Services that do not produce any value are considered to have no quality. Enterprises create value and customers are the recipients of those values. Therefore, considering service quality or more specifically the values ​​brought to customers depends on the assessment of customers, not of enterprises. Normally, customers receive the values ​​​​provided by services and compare them with what they expect to receive.

In other words, the value of service quality is also influenced more by external factors (customers) than internal factors (enterprises). High quality service is a service that creates values ​​that not only meet customer needs but also exceed customer expectations and make your business stand out from competitors. Therefore, value creation is a basic characteristic and the foundation for building and developing the quality of a business's services.

c. Service quality model

Due to the characteristics of service quality, the assessment of service quality is relative and complex and based on many different criteria depending on the perspective of each author. Below we study some service quality models commonly used in current research:

First, the Servqual model (Prasuraman et al (1985, 1998)). The Servqual model is the most popular and widely applied service quality research model in Marketing research, because of its specificity, detail and assessment tools that are always verified and updated by authors, colleagues and researchers. The Parasuraman model is considered in two aspects: building a theoretical basis through the five quality gaps model and building quality components for quantification:

- Five quality gap model

During the research and exploration process, Parasuraman et al. proposed a model of five gaps in service quality. Accordingly, the quality of service provided and distributed to the company's customers is governed by five gaps as follows:

Figure 1.1: Five quality gaps model

GUEST

Table 1.1: Five quality gaps

Distance 1

The first gap appears when there is a difference between the service customer expectations and management's understanding of those expectations
Distance 2	The second gap appears when the service firm has difficulty in translating its perception of customer expectations into performance. goods into quality characteristics
Distance 3	The third gap appears when the waiter does not move Deliver services to customers according to defined criteria
Distance 4	The fourth gap appears when there is a difference between the actual service distribution and supply of information that customers receive through communication about that service.
Distance 5	The fifth gap appears when there is a difference between the expected service and the actual service received.

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• Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015 zt2i3t4l5ee zt2a3gsnon-credit services, joint stock commercial bank zt2a3ge zc2o3n4t5e6n7ts At that time, the Branch had to set aside a provision for credit risks, which reduced the Branch's income. Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015 Unit: Billion VND 140 120 100 80 60 40 20 0 63.3 80.34 89.29 110.08 131.99 2011 2012 2013 2014 2015 Profit before tax (Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24]) However, through chart 2.2, it can be seen that BIDV Tien Giang's profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project "Restructuring the system of credit institutions in the period 2011-2015" approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: "Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services". 2.2. Current status of non-credit service development at BIDV Tien Giang. 2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times. Along with the development of the Head Office, BIDV Tien Giang's products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,... 2.2.1.1. Payment services: In accordance with the Prime Minister's Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers' cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc. Chart 2.3. Net income from payment services in the period 2011-2015 Unit: Million VND 6000 5000 4000 3000 2000 1000 0 3922 4065 4720 5084 5324 2011 2012 2013 2014 2015 Net income from payment services (Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24]) Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment. 2.2.1.2. Treasury services: BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giang's treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17]. Chart 2.4. Net income from treasury services in the period 2011-2015 Unit: Million VND 350 300 250 200 150 100 50 0 105 122 309 289 279 2011 2012 2013 2014 2015 Net income from treasury services (Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24]) However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services. 2.2.1.3. Guarantee and trade finance services: BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance. Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015 Unit: Million VND 14000 12000 10000 8000 6000 4000 2000 0 5193 5695 2742 3420 8889 3992 11604 12206 5143 5312 2011 2012 2013 2014 2015 Net income from guarantee services Net income from Trade Finance (Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24]) Through chart 2.5, we can see that BIDV Tien Giang's income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giang's corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area. are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future. 2.2.1.4. Card and POS services: As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services. In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system. Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments. Chart 2.6. Net income from card services in the period 2011-2015 Unit: Million VND 3500 3000 2500 2000 1500 1000 500 0 687 1023 1547 2267 3104 2011 2012 2013 2014 2015 Net income from card services (Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24]) Through chart 2.6, it can be seen that BIDV Tien Giang's card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25]. Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area. Unit: Machine STT Bank name Number of ATMs Cumulative number of ATM cards POS machine 1 BIDV Tien Giang 23 97,095 22 2 BIDV My Tho 7 21,325 0 3 Agribank Tien Giang 29 115,743 77 4 Vietinbank Tien Giang 16 100,052 54 5 Dong A Tien Giang 26 97,536 11 6 Sacombank Tien Giang 24 88,513 27 7 Vietcombank Tien Giang 15 61,607 96 8 Vietinbank - Tay Tien Giang Branch 6 46,042 38 (Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21]) Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6). div.maincontent .content_head3 { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: bold; text-decoration: none; font-size: 14pt; } div.maincontent .p { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; margin:0pt; } div.maincontent p { color: black; font-family:"Times New Roman", serif; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; margin:0pt; } div.maincontent .s1 { color: black; font-family:"Courier New", monospace; font-style: normal; font-weight: normal; text-decoration: none; font-size: 14pt; } div.maincontent .s2 { color: black; font-family:"Times New Roman", serif; font-style: italic; font-weight: normal; 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font-family:"Times New Roman", serif; font-style: normal; fo

Parasuraman et al (1985) stated that service quality is a function of the fifth gap. This fifth gap depends on the previous gaps, which are gaps 1, 2, 3, 4. Therefore, to shorten the fifth gap and increase service quality, service managers must make efforts to shorten these gaps.

The service quality model according to researchers can be represented as

after:

CLDV = F(KC_5) = F (KC_1, KC_2, KC_3, KC_4)

In which, CLDV is service quality and KC_1, KC_2, KC_3, KC_4, KC_5 are

quality gaps 1, 2, 3, 4, 5

The five differences model is a general, theoretical model of service quality. Through the model, we can clearly understand the process of providing service quality through the way of distributing services to customers and the results of service provision (outcome).

- Service quality components

To be able to measure service quality, Parasuraman et al (1985) built a scale to evaluate quality in the service sector. According to him, the quality of any service is perceived by customers based on the following 10 components:

1) Accessibility

2) Reliability

3) Service capacity (Competence)

4) Tangibles

5) Communication quality

6) Service style (Courtesy)

7) Respect for customers (Credibility)

8) Responsiveness

9) Security

10) Understanding/Knowing the customer.

The ten quality components are summarized by Parasuraman as follows:

1) Access : Related to creating all conditions for customers to easily access services such as shortening customer service time.

2) Reliability : Refers to the ability to provide services accurately, on time and reliably. This requires consistency in service delivery and respect for commitments and promises to customers.

3) Service competence (Competence) : Indicates the professional level of the staff in performing the service.

4) Tangibles : These are the physical manifestations of the company such as equipment, facilities, machinery, staff demeanor, documents, manuals and the company's communication system.

5) Communication quality: Related to communication, providing customers with necessary information before customers use the service.

6) Service style (Courtesy) : Expresses the character of serving customers warmly, respectfully and friendly.

7) Respect for customers (Credibility) : Speaks about the ability to create trust for customers, making customers trust the company.

8) Responsiveness : Demonstrates the ability to resolve problems quickly, handle complaints effectively, be willing to help customers and respond to customer requests.

9) Security : Related to the ability to ensure customer safety in terms of physical, financial and confidentiality.

10) Understanding/Knowing the customer : Demonstrated through the ability to understand customer needs.

In the ten criteria for evaluating service quality, there are two attributes that need to be looked for that can be decided before purchase: Reliability and Tangibility. The remaining criteria such as: Accessibility, service capacity, communication quality, service style, customer respect, service efficiency, safety, customer understanding can only be known when customers are buying or consuming the service.

The 10-component service quality model mentioned above has the advantage of covering most aspects of service. However, this model has the disadvantage of being complicated in measurement. Moreover, this model is theoretical in nature, with many components of the service model not achieving discriminant value. In 1998, Parasuraman et al. re-examined the model and concluded that service quality includes the following five components:

1) Reliability

2) Responsiveness

3) Tangibles