UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School Of Business NGUYỄN THỊ HẠNH DUNG THE IMPACT OF ONLINE INFORMATION SYSTEM QUALITY DIMENSIONS ON OVERALL INTERNET BANKING SERVICE QUALITY AND CUSTOMER SATISFACTION IN VIETNAM. MASTER OF BUSINESS (Honours) Ho Chi Minh City – Year 2014 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School Of Business NGUYỄN THỊ HẠNH DUNG THE IMPACT OF ONLINE INFORMATION SYSTEM QUALITY DIMENSIONS ON OVERALL INTERNET BANKING SERVICE QUALITY AND CUSTOMER SATISFACTION IN VIETNAM. MASTER OF BUSINESS (Honours) Supervisor Dr. Nguyễn Thị Nguyệt Quế Ho Chi Minh City – Year 2014 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com ABSTRACT The development of scientific technology, especially the development of the information technology have a strong impact on all aspects of life, economic - social, change awareness and method of manufacturing business many areas, many different economic sectors.
And banking is the sector which activate primarily base on modern information technology is influenced strongly. Nowadays, developing internet banking services is the inevitable trend in Vietnam. Because Internet banking brings the great benefits for customers and the economy, due to its utility, convenience, promptitude, accurate and secure. The banks enhance expressly quality of internet banking service to satisfy the customer aim to higher profit.
The success of a internet banking service depend on three dimensions : product, service quality, technology. There are many studies research about the factors impact on internet banking service quality and how to develope them to satisfy the customer 's demands but in Vietnam very few stuies mentioned to the quality of information technology while internet banking service quality depends primarily on information technology system. The customer will not satisfy with internet banking service quality if the information technology system don’t operate well and trouble happen frequently. Based on that, the study was conducted to research "The impact of online information system quality dimensions on overall internet banking service quality and customer satisfaction in Vietnam”.
The study was conducted by exploratory factor analysis (EFA) method and multiple linear regression (MLR) for measuring model. The survey questionnaires were transfer to a sample of 250 consumers who has used internet banking services in Vietnam. The result revealed that six dimensions of online Information system quality including Aesthetic, Timeliness, Contents, Ease of use, Security, Accuracy are important dimensions impact on customer satisfaction in using Internet banking and Accuracy is the most important dimensions. Based on the results of research, the author hopes that the bank managers realized the big influence of information system quality on internet banking service quality to carry out effective solutions to develop internet banking service in Vietnam.
1 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com TABLE OF CONTENTS ABSTRACT. 1 LIST OF FIGURES .4 Significance of the research .5 Research scope and methodology. 12 CHAPTER 2: LITERATURE REVIEW and THEORETICAL MODEL .1 Online information system quality .1 Definition of online information system quality .2 Dimensions of online information system quality .2 Overall internet banking service quality .2Overall internet banking service quality concept .3Impact ofonline information system quality dimensions onoverall internet banking service quality .1 Customer satisfaction definition .2Customer satisfaction in internet banking context. 25 2 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.3 Impact of overall internet banking service quality on customer satisfaction in E-banking context .4 Theoretical model and hypothesis.
28 CHAPTER 3: RESEARCH METHODOLOGY.1 Measurement of online information systems quality dimensions .2 Measurement of overall internet banking service quality: .1Data collection method .6 Data analysis techniques .1 Testing of reliability .2 Exploratory factor analysis (EFA).3Multiple regression analysis. 38 CHAPTER 4: ANALYSIS RESULT .2 Testing reliability of measurement scales .3 Exploratory factor analysis. 42 3 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.1 Testing measurement scales of online information system quality .2 Testing measurement scales of overall internetbanking service quality .3 Testing measurement scales of Customer Satisfaction .4 Testing correlations between all constructs .5 Testing research model and hypothesis .1The relationship between online information system quality dimensions and overall internetbanking service quality .2 The relationship between Overall internet banking service quality and Customer Satisfaction .6 Discussions of research findings. 54 CHAPTER 5: CONCLUSION AND IMPLICATIONS .3 Limitations and Recommendation for further research.
69 4 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LISTOFTABLES Table 3.1: Measurementof aesthetics Table 3.2:Measurementof timeliness Table 3.3: Measurementof the content Table 3.4:Measurementof ease of use Table 3.5:Measurementof security Table 3.6: Measurementof accuracy Table 3.7: Measurement of overall internet banking service quality Table 3.8: Measurement of customersatisfaction Table 3.9: The sample size Table 3.10: Cronbach’s alpha reliability coefficient Table 4.1: Demographic Characteristics of the Study Table 4.2: KMO and Bartlett's Test Table 4.3: KMO and Bartlett’s Test Table 4.4: Rotated Component Matrixa Table 4.5: KMO and Bartlett’s Test Table 4.6: Rotated Comonent Matrix Table 4.7: KMO and Bartlett’s Test Table 4.8: Total Variance Explained Table 4.9: Component Matrixa Table 4.10: KMO and Bartlett's Test and Component Matrix Table 4.12:Model Summaryb Table 4.14:Model Summaryb Table 4.16:Coefficientsa 5 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com LIST OF FIGURES Figure1:Themodelof research Figure2:Themodelof researchprocess 6 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com CHAPTER I: INTRODUCTION In this chapter, the problems are discussed such as introducing the role and importance of internet banking in the banking industry; internet banking ‘s situation in VietNam; research objectives, scope and methodology. Many researchers have discussed about internet banking but most of them has not focused on online information system quality dimensions that affect customer satisfaction in internet banking. And the cause the thesis was chosen.1 Research background Internet banking could be conceptualized within the context of electronic banking. Internet banking is the situation where “customers can access their bank account via the Internet using a PC or mobile phone and web-browser” (V.
Currently, Internet banking relies on the Internet environment, service is provided entirely through the network environment and there is combining commercial banking system and traditional electronic goods, such as the distribution of products and services on the old new distribution channels. In recent years, Internet banking has grown worldwide with fast speed. This service is also considered as retail distribution channels and it is the most successful banking services in terms of growth rate of number of customers. Internet banking allows customers to use the service through the bank’s website anytime, anywhere, quickly, conveniently at a lower cost than other traditional services of banks (White and Nteli, 2004).
Internet banking enables customers to save time, take control of their personal finances and even help the environment by opting to receive electronic statements. Customer can access accounts and general information on bank products and services through a personal computer or other intelligent device. Internet banking products and services can include detailed account information for corporate customers as well as account summary and transfer money. Internet Banking helps banks save up human resources by multiple steps have been automated but still ensure for provide high quality services to a large number of their customers.
And so, not the profits of the bank increased but more importantly, their reputation has been enhanced.For the banks, internet banking also allows them to reduce operating costs, reduce dependence on the expansion of the branch network, expanding business sector, support the strengthening relationship with customers (Shih and Fang, 7 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.Through Internet Banking, communication and transactions between banks and customers has also been speeded up. Moreover, intense pressure of uncertain economic outlook, a growing threat from new entrants foster each banks to differentiate themselves to compete with both local and foreign banks. Therefore, the decision to provide Internet Banking is currently perceived as vital for customer retention and maintaining competitive advantage (DeYoung and Duffy, 2002). According to Gartner Group report, the growth rate of online banking services in the U.
is very high, from ten million users in 1999 to thirty -five million users in 2003. According to the report of the organization, online banking services are also used similar popularity in the U., in 2009, approximately 30-40 % of the UK population currently use this service. In Brazil, there are about 18.1 million users of online banking services in 2004. It is compared with 8.3 million users in 2002, including 16.2 million user accounts are individual subscribers.
Here, these financial sites are always be the sites traffic and most used, with the figure of 50 % of the total 13.5 million Internets account login regularly (Vichuda and Serap Ekin, 2001). Moreover, if the only consideration in 2004, the Bank of Brazil has invested about 2.1 billion dollars in the technology sector (Febraban, 2004), including the development of online banking services and a number of other areas. Starting in 1994, internet banking in Vietnam was built on the foundation of information technology and banking technology at a low level, only allowing customers to access to get information and makesimple payments. In just a short time, the level of information technology in our country has made significant improvement, it leads to the rapid development of the industries applied the information technology such as banking sector.In recent years,internetbanking services is growing more aggressive and having strong shifts.
However, internet banking in Vietnam is only in the early stages of development and was monotonous, meager and not attract many customers. Non-cash payment in Vietnam is still low, the proportion of cash used in bank circulation / total means of payment is ranged between 24-25%. This rate is much higher than other countries in the region such as Thailand (6. Psychology preferred cash in using VND, foreign currencies and the understanding of banking services by Vietnamese are low is one of the reasons for extending banking services difficultly.
8 LUAN VAN CHAT LUONG download : add luanvanchat@agmail.com The success of a internet banking service depend on three dimensions : product, service quality, technology. But Vietnam is a developing country so the development and security of information technology sector is not as high as developed countries leads to the quality of internet banking service is not high affect the customer satisfaction. So there are many stusies research about which factors impact to internet banking and how develope them to satisfy the customer 's demands but there are not many stuies mentioned the quality of information technology in Vietnam while internet banking service would be have some problem if the technology has trouble. Summary, although a service which be ad well, the abundant human resource but the technology is not good, almost customers won't want to use this service.
In the scope of this thesis, we want to research about the impact of online information system quality dimensions on overall internet banking service quality and customer satisfaction in Vietnam.2 Problem statement Consumer satisfaction is the major problem for the businesses that are operating in Electronic Commerce systems. Good customer service quality is the main factor that will determine, in the future, whether the businesses will survive or fail (Thompson, Green and Bokma,2000). Improving customer service helps to build and maintain customers relationships. Recently, many banks have used the Internet as a new market channel to offer their customers avariety of services 24 hours a day.
With internet banking service, to satisfy customer’s needs, many banks need to set up web sites that provide quality information and services to customers. Better service quality typically can help to get higher market share and better returns (Slu and Mou, 2003). It is desirable for online service providers to uncover what attributes consumers utilized in their assessment of overall service quality and satisfaction and which attributes are more important (Yang and Fang, 2004). Internet-based services are believed to have convenience, interactivity, relatively low cost.However, there is no much research about the factors that affect customer satisfaction with Internet-based services.
Due to rapid technological change and market competition, service quality becomes an increasingly important issue. Therefore understanding overall internet banking service quality with customer satisfaction is need.