Vietnam Banking Industry: Customer Satisfaction Analysis

Vietnam verifying Industry client Satisfaction AnalysisIt hobo be said that Vietnam is on the elbow room of dramatic development and integration in global economic. Since Vietnam has officially trim a member of the World Trade Organization (WTO), besides the advantages and opportunities, thither have been still legion(predicate) challenges that Vietnam has to overcome. In recent years, Vietnameses commits have achieved many consequential achievements in innovation have grown openhandedr and stronger than forward judgment of conviction. However, comp ard to the world, Vietnam chamfering industry is still small, modest, and inadequate.Undoubtedly, compared to 10 years ago, Vietnam banking industry has really been a remarkable growth. Firstly, banking system has mobilized and provided a large amount of capital to the economy, estimated closely 16-18% of one-year GDP (Vietnam Head Department Statistic 2008), nearly 50% of affectionate capital. Credit growth has been increa sed during the year and in 2008 which was estimate to be approximate 24% that is 19% higher than in 2007. The banking system has to a fault contributed to growth, the development, and economic stability in recent years. Secondly, Vietnams banking system had a universal renovation. Many legal documents have been issued house-to-housely, the policies about banking activities has been completed and consistent with outside(a) practice. Moreover, the discrimination between types of domestic credit institutions and the foreign ones has been gradually eliminated. money boxs as intumesce as credit institution have been autonomous and self-responsible. conflict of credit institutions has been enhanced therefore banking food marketplace has been developing safely and effectively. Thirdly, fiscal policies have been renovated and operate beneath market principles with international practice. The indirect operating tools that fill in monetary policies have been formed and developed. Interest rate insurance and exchange rate flexibility have been take by the market mechanism. Credit policies have been expanded and made innovation in the complaint of fairness and e fiber for all economic sectors, business, and all residents.1.2 node gladness management in Vietnam buzzwording IndustryCompetitive trends in quality of banking overlap and serve on financial and monetary markets increasingly urged Vietnameses banks to renew and await to have effective client policies and strategies in order to compete passably with foreign banks. Thus, Vietnameses banks have ability to overcome the challenges that have been forecasted to be very fierce in coming term. Customer joy management give notice be considered as an alpha point in heathen initiative and cultural care, implementation of banks strategies towards guests in the context of globalization. Undoubtedly, currently when the difference in quality, picture of banking serve as strong as the conflict of the products itself is no spaciouser critical among banks, the fixed factor is the quality of node service. apprised of the important of increase guest enjoyment, Vietnameses banks have established guest felicity management in order to evaluate guest contentment on their products and operate. Therefore, banks can correct their operations as well as consolidate their images in guests eyes, and banks can increase sales, market share, and horizon in the market.2. Bank management studies on BIDV, Hochiminh City classify (HCMC)2.1 Performance of BIDV, HCMC branchBank for Investment and Development of Vietnam has a short name is BIDV, was established under the Conference No.177/TTg dated on 26/04/1957 of Prime Minister of state- delayled Republic of Vietnam. HCMC branch which is one of the largest scale branches in BIDV system, has estimated assets VND 10,000 billion (BIDV annual reports). HCMC branch has high business act with ROA ratio everlastingly supra 1%. There are 313 staffs classified into 4 blocks these are credit, node function, block of units, and internal management. Founded in 1977, HCMC branch is of all time pioneer branch and dynamic in BIDV system in development new products and work base on applying modern technology and client-oriented. Recently, BIDV HCMC branch has been undefeated in the role of focal bank in ar set upment of syndicated loans, co-financed investor in large scale projects. HCMC branchs activities in recent years have been customer-oriented, creating the scoop up conditions for customers to approach path and use banking function more effectively.BIDV is one of four state-owned commercial banks so it is quite easy to understand why customers have high level of trust for bank. found on the egress of survey and look into through recently to measure customer bliss, reveal that planetaryly bank has been successful in bringing rapture to customers through the provision of products and services. The le vel of customer satisfaction varies from agree to fully agree. The measurement of customer satisfaction is base on the quality of services, number of products and services, and the continuity of using the services. The quality of services brings satisfaction to customers, they use the most services provide to them and they seem to be happier to use more BIDVs services. This result confirms the criteria activities cooperate and succeed that BIDV has done for years. Thus, the bank has been successful in bringing satisfaction to customers through the provision of products and services. However, this is as well as mechanical press for the bank for better improvement what they have achieved. Therefore, the bank should prove further efforts to preserve and bring the highest satisfaction to customers.2.2 Purpose of the driveNowadays, in the competitive environment, customers are crucial survival of the bank. The banks which are paid attention, fire as well as loyalty of customers, wi ll capture market shares and develop faster. Business strategic direction to customers is becoming the most important strategies of banks. How to give customers the best satisfaction is always the problem that banks try their best to fulfill. Therefore, research customer satisfaction in the bank is an important work that has to be done regularly and continuously in order to pertain their ask. Since then, they can serve customers better and make customers always be fit when using banks products and services. This study is not out of this purpose which aims to enhance customer satisfactions for BIDV as well as increase the quality of products and services supplied by BIDV.2.3 Significant of the studyThe study presents the evaluation of customer satisfactions on products and services provided by BIDV HCMC branch. Thus, bank has a comprehensive glance on the products and services they are supplying to customers. Bank should focuses on business development strategies as well as the q uality of products and services. Obviously, if the service quality does not conglomerate customers demand, the customers will no longer to use it. From the evaluation of customer satisfactions, bank can realize clearly their strengths and weaknesses. From there, they save to promote strengths and overcome weaknesses in order to improve the quality of services, increase customer satisfaction.2.4 Limitation of the studyThe study has a dictatorial contribution to the bank in savvy customers and identifying their position in the market, however the study still has some sealed limitations as followsThe study focuses on group business customers therefore it cannot be the overview of the entire customers transactions in BIDV HCMC branch.The study only considers about the time used and the number of banks transactions, it does not find out all customer satisfaction in the connection with trading enterprises, financial potential and cultural factors.The study only focuses on evaluation of customer satisfaction of HCMC branchs services so it cannot assess on customers in the city and another(prenominal) locations as well as potential customers who are not using banking services.Based on these findings, this study can be improved with variety customer group, larger number of samples, wider research scale.3. Model relevant to study3.1 presentment of Servqual ensampleManagers in banking industry are under increasing pressure to demonstrate that their services are customer focused and that continuous performance improvement is being delivered. Given the financial and resources constrains under which banks must manage it is essential that customer satisfaction are properly met and measured and that from the customer satisfactions, any gaps in services quality are indentified. This information the assists a manager in identified cost effective ways of finis services quality gaps and of prioritizing which gaps to focus on a critical close given scare resources.Thi s study involves the use of Servqual model (Parasuraman, 1988) which is a hot model of quality research of services and the most common occupation in the marketing research. According to Parasuraman, the quality of services cannot be refractory vaguely but it depends on sense of belonging to customers for such services and this information is considered by many factors. Servqual model is built based on the evaluation of quality of services, which is the comparison between the expected value, expectation, and the value customers perceived. Servqual model considers two main aspects of services quality as a result services and the process of services which are studied through 5 criteria reliability, responsiveness, tangibles, assurance, and the empathy.Figure 3.1 SERVQUAL MODELReliabilityResponsivenessCustomer satisfaction work qualityTangiblesAssurance kind-heartednessSources International Journal of Business and focusing3.2 Elements of Servqual Model3.2.1 ReliabilityReliability shows the ability to provide services accurately, on time, and credibly. This requires consistency in the implementation of services and respects commitments as well as keeps promises to customers. In the banking sector, this criterion is measured by customers through the spare-time activity elements.The bank performs the services right from the first time.Banking services are utilise at the time they promise.Banking transactions are done correctly.Banks staffs are always ready to serve customers.There are always banks counselors at the put over to supporter the customers.Banks statements are submitted regularly and promptly.3.2.2 ResponsivenessThis criterion measures the ability to clobber the problem fast, deal with customers complaint effectively and the willing to help customers as well as meet the customers requirements. In other words, responsiveness is the feedback from banks to what customers want.Banks staffs are available to assist customers.Bank provides services ra pid, on time.Bank responses positively to customers requirements.Banks hotline for customer services is 24/24.Bank tries to solve problems for customers.3.2.3 TangiblesTangibles are the images of the facilities, equipment, machines, pose of staffs, materials, manuals, and information systems of the bank. General speaking, anything that customers can see by eyes and face by senses can impact on tangible.The bank has adequate facilities.Bank has modern equipment and machinery.Banks staffs look professional and dressed.Bank arranges the transaction counters, tables, and shelves scientifically and conveniently for customers.3.2.4 AssuranceThis element creates credibility and trust for customers, which is considered through professional services, refined technical knowledge, attitude courtesy, and good communication skills, so that customers can see in the quality of banks services.Banks staffs serve customers politely, and courteously.Transaction documents are clear and understandab le.Banks staffs always provide necessary services information for customers.Banks staffs answer customers questions clearly and accurately.3.2.5. SympathySympathy is the caring, consideration, and the best preparation for customers, so that they can feel as guests of the bank and are always welcome at any times, anywhere. kind-hearted factors are the core of this success and the more caring the bank gives to customers, the more customer understanding increases. The sympathy of banks staffs for their customers are expressed as followsBanks staffs notices the needs of each customer.Customers do not have to queue for a long time to be served.The bank has convenience location for customers to have transactions.Banks cash dispenser systems are modern and ease to use.Banks staffs treat customers kindly.3.3 Summary and limitation of old research and findingsThrough journals I have examined, research issues about customer satisfaction can be classified into 3 main categories including fa ctors sour on customer satisfaction, the measurement of customer satisfaction, and the impact of customer satisfaction on business3.3.1 look for about factors influence on customer satisfactionThe research investigates the relationship between services quality, overall customer satisfaction, and behavioral intention crosswise public and banks. The findings indicate that services quality is significant determinant of customer satisfaction in banking industry (Monica Bedi, 2010 M.Jun and S.Cai, 2010). However, various dimensions of services quality were found to be statistical significant across public and banks. The study helps banks to redefine their corporate image to one that is customer-oriented and determined by service quality.Research limitation concern the potential for the entropy inaccuracies due to item misinterpretation or predisposition to certain responses on the part of the participant does exist (Bedi, 2010). Similarly, the sampled selective information is one limitation which was hoard from one organization (M.Jun and S.Cai 2010). Although, the purchasing department serves a wide range of internal customers and is involved in various purchasing activities, the dataset is limited by the potential lack of generalisability.3.3.2 Research about the measurement of customer satisfactionThe research provides method to measure customer satisfaction based on assessing customer perception of services quality in services and retail organization. One of the most popular model is Servqual (Parasuraman, 1988) is based on the perception gap between the received quality and the expected services quality, and has been adopted for explaining consumer perception of services quality. In addition, the availability of customer satisfaction data from national indices has overly facilitated the examination of the factors associated with aggregate level customer satisfaction (M.Ogikubo et al, 2009).Besides, the research points out the limitation of the Servqu al is that the evaluation of services quality evaluated based on the expectation performance gap derived from Parasuraman 1988 is insufficient because much of the trial-and-error research supported performance based measures of services quality (K.Ravichandran, 2010).3.3.3 Research about the impact of customer satisfaction on businessThe research presents that customer satisfaction has an important impact on business which is determined factor in customer loyalty as well as customer retention (Harkiranpal S., 2006). Moreover, the research provides an examination of satisfaction-retention relationship, and the development of more comprehensive view of the customers quality perception (Hennig Thurau and Klee, 1997). Customer satisfaction positively affects an organizations profitability. comfortable customers form the foundation of any successful business as customer satisfaction leads to repeat purchase, brand loyalty as well as positive word of mouth (Hoyer and MacInnis, 2001).4. Methodology for study4.1 Research designThese terms quantitative and qualitative are used widely to classify both data order of battle techniques and data analysis procedures. Quantitative is predominantly used as a synonym for any data question techniques or data analysis procedures that amazes or uses numerical data. In contrast, qualitative is used predominantly as a synonym for any data collection techniques or data analysis procedures that generates or uses non numerical data. tether types of quantitative studies these include experimental approach, cross-sectional designs, and survey method. Because of limited time to complete collecting primary data, survey is an optimal method to collect research information. When using survey will give more control over the research process and sampling is used it is possible to generate findings that are representative of the whole population at a turn down cost than collecting the data for the whole population.4.2 selective informat ion collectionData can be obtained from primary or secondary sources. Data can be collected in a variety of ways, in distinct settings and from different sources. Data collection methods include interviews, questionnaires, observation, and variety of other motivational techniques. Questionnaire is the best way to collect the data about customer satisfaction because making an appointment for personal interviews or telephone interviews is difficult, even though impossible. Beside the personal information and customer characteristic (open questions), questionnaire is designed including 33 properties (closed questions) that create up the characteristic of banking services. It is presented on scale from 1 to 7 points (from last-place satisfaction to highest satisfaction about the components of banking service). It will help quantify the conviction of customers who were invested and use the questionnaire to verify and analyze the multivariable date in the valuable the satisfaction of c ustomers later. The customers are also suggested to evaluate their own overall satisfaction in last question by giving the scores.4.3 Data analysis afterwards collecting all the data, the process of analysis begins. To summarize and rearrange the data, some(prenominal) interrelated procedure are performed during the data analysis stage. For quantitative data analysis, statistical tools of Microsoft excel and analytical software SPSS are used for data input and analysis. The statistic results were presented by graphical form with detail description.5. ConclusionCustomer satisfaction is not only vital factor but also the target that all banks want to achieve. Along with the increasingly strong competitiveness in banking industry, learning about customer needs as well as the factors affecting customer satisfaction has become essential. Therefore, this study is reclaimable in proposed policies, development strategies of banks.In the service sector in general and banking sector in part icular, the role of the meeting customer needs has an important implication that derives from the interaction between banks and customers as well as the positive impact that banks have. More specifically, if banks bring their customers the high customer satisfaction, customers will continue to use their services, support new banks products or services, introduce the bank to other partners, and become loyal customers. From there, they are contributing to increase sales, market share, and position in the market that are the targets any bank wants to achieve.This study researches customer satisfaction with the products and services that banks provide to customers. This thesis is presented through the survey of customer satisfaction. Survey results are reliable input source to marketing strategies and opportunities to help banks better understand customer needs, customers evaluation of quality of banks services. Therefore, banks can improve their operations and enhance customer satisfac tion more effectively.