MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM HO CHI MINH UNIVERSITY OF BANKING HUYNH THI LAM PHUONG Factors influencing customer satisfaction with the International payment service: The case study of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Binh Dinh Branch BACHELOR THESIS MAJOR: BUSINESS ADMINISTRATION CODE: 7340101 HO CHI MINH CITY, 2022 MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM HO CHI MINH UNIVERSITY OF BANKING HUYNH THI LAM PHUONG Factors influencing customer satisfaction with the International payment service: The case study of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Binh Dinh Branch BACHELOR THESIS MAJOR: BUSINESS ADMINISTRATION CODE: 7340101 SUPERVISOR PHAM HUONG DIEN, Ph.D HO CHI MINH CITY, 2022 i ABSTRACT Customer satisfaction plays a pivotal role in driving the success and growth of every business organization in the way that it helps generate repurchase from satisfied customers, forms strong brand loyalty as well as facilitates word-of- mouth marketing. In the context of gradual economy recovery after the 4th outbreak of Covid- 19 in Vietnam, there is huge pressure among banks to increase their charter capital to enhance financial capacity and revenue diversification in new services. Customer satisfaction is crucial because in banking industry where products are highly homogeneous, quality of service is primary factor that influence customer’s choice of bank. The thesis elaborates on “Factors influencing customer's satisfaction with the International payment service: The case study of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Binh Dinh Branch” with the aim of identifying factors behind customer satisfaction in a specific area of service - International payment at a leading Vietnamese bank - BIDV, assessing level of current performance of BIDV Binh Dinh branch in each area of customer satisfaction determinants and proposing recommendations for improvement.
This will in turn supports the bank’s long-term growth and brand equity. ii DECLARATION OF AUTHENTICITY I the undersigned declare that all material presented in this paper is my own work or fully and specifically acknowledged wherever adapted from other sources. I understand that if at any time it is shown that I have significantly misrepresented material presented here, any degree or credits awarded to me on the basic of that material may be revoked. I declared that all statements and information contained herein are true, correct and accurate to the best of my knowledge and belief.
Ho Chi Minh City, May 2022 Name Huynh Thi Lam Phuong iii ACKNOWLEDGEMENT First and foremost, the author would like to express the deepest gratitude to the dedicated supervisor Dr. Pham Huong Dien for her great guidance and meaningful advices without which the thesis would not be completed. In addition, throughout the process of doing research, the author has received a lot of attention and valuable support from teachers, friends and relatives. Thus, the author would like to take this opportunity to send deep gratitude to: - All lecturers from Business Administration Department of Banking University based in Ho Chi Minh city who have provided favorable conditions for the author to have the opportunity to enhance knowledge of business administration as well as banking industry and sharpen practical skills during the last four years.
- All senior colleagues from the International payment service team at BIDV Binh Dinh for their enthusiastic help with providing necessary data for the thesis. - Parents, relatives and friends for their technical and mental support. Due to limited time, knowledge and research experience, the article can not avoid limitations. Therefore, the author would like to receive comments from teachers to better complete her thesis next time.
Ho Chi Minh City, May 2022 iv Name Huynh Thi Lam Phuong TABLE OF CONTENTS CHAPTER 1. Research Objectives and Questions. Research subject and scope. Structure of the thesis .4 Summary of Chapter 1.
Concept and Theory. Banking service and International payment service. The relationship between service quality and customer satisfaction…………………………………………………………. Customer satisfaction using international payment services.
Previous studies on factors influencing customer satisfaction………………………………………………………………13 2. Research model and hypothesis. Knowledgeable and experienced consultant team .17 Summary of Chapter 2 .26 Summary of Chapter 3. DATA AND SITUATIONAL ANALYSIS.
Overview of Bank For Investment and Development of Vietnam and Bank For Investment and Development of Vietnam, Binh Dinh branch ……………………………………………………………………28 4. Bank For Investment and Development of Vietnam. Bank for Investment and Development of Vietnam, Binh Dinh branch. Main business activities.
Organization of apparatus at Bank For Investment and Development of Vietnam, Binh Dinh branch. International payment service at Bank For Investment and Development of Vietnam, Binh Dinh branch. International payment services at Bank For Investment and Development of Vietnam, Binh Dinh branch. International payment operation process at Bank For Investment and Development of Vietnam, Binh Dinh branch.
Performance of international payment department, at Bank For Investment and Development of Vietnam, Binh Dinh branch during 2017 – 2021. SWOT analysis of customer service of the international payment at BIDV Binh Dinh branch. Survey data analysis. Factors influencing customer satisfaction .47 Summary of Chapter 4.
CONCLUSIONS AND RECOMMENDATIONS. Knowledgeable consultant team. Research limitation and futher study. 75 viii LIST OF ABBREVIATIONS Abbreviations Full meaning AI Artificial intelligent ATM Automatic teller machine CES Customer effort score D/A Documentary against acceptance D/P Documentary against payment FDI Foreign direct investment GSI Growth strategies international ICC International chamber of commerce IPO Initial public offering IT Information technology L/C Letter of credit NPS Net promoter score T/T Telegraphic transfer Society for Wordwide Interbank SWIFT Financial Telecomunications Uniform custom and practice for UCP documentary credits UPAS L/C Usance payable at sight letter of credit URC Uniform rules for collection VIP Very important person WTO Word Trade Organization ix LIST OF FIGURES Name of figures Page 2.1- Factors influencing customer 14 satisfaction 2.1 - Organizational chart of BIDV 30 Binh Dinh branch x LIST OF TABLES Name of tables Page 36 4.1 - Number of international payment customers at BIDV Binh Dinh branch 4.2 - Import - export revenue at BIDV 37 Binh Dinh branch 4.3 - Number of international payment 38 transactions at BIDV Binh Dinh branch 4.4 - Number of international payment 39 transactions at BIDV Binh Dinh branch, by method of payment 4.5 - Revenue from international 40 payment services 4.7 - Customer satisfaction results 74 4.8 - Tangibles survey results 74 4.9 - Responsiveness survey results 75 4.10 - Assurance survey results 75 4.11 - Convnience survey results 75 4.12 - Price competitiveness survey 75 results 4.13 - Knowledgeable consultant team 76 1 CHAPTER 1.
Research statement Customer satisfaction is critical to success and growth of every business organization in the way that it boosts revenue via repurchase from satisfied customers, forms strong brand loyalty as a fundamental springboard for new customer acquisition and facilitates word-of-mouth marketing. Its widely observed that companies such as Amazon, Apple, Starbucks,…which consistently do their best to meet and exceed customer expectations reap sustainable business growth. Sam Walton - the legendary founder of the world’s biggest retail chain Walmart once emphasized the importance of customer satisfaction to enabling companies’ competitiveness: “There is only one boss. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.” In the context of lockdown removal and gradual economy recovery after the 4th outbreak of Covid-19 in Vietnam, there is huge pressure among banks to increase their charter capital to enhance financial capacity.
Together with this, there is increasing need for revenue diversification, which is reflected in banks’ shift from deposit service as their primary traditional source of sales to other services including payment, insurance, securities as a new growth driver. Within service sector, customer satisfaction plays a crucial role because satisfied customers are likely to stay loyal to their chosen banking services, to try new service offerings and to recommend the bank to other customers. Due to aforementioned reasons, the author decided to write a thesis on “Factors influencing customer's satisfaction with the International payment service: The case study of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Binh Dinh Branch” with the aim of identifying factors behind customer satisfaction in a specific area of service - International payment at a leading Vietnamese bank - BIDV, assessing level of 2 current performance of BIDV Binh Dinh branch in each area of customer satisfaction determinants and proposing recommendations for improvement. This will in turn supports the bank’s long-term growth and brand equity.
Research Objectives and Questions The thesis aims to achieve the overall objective is to investigate the current situation of the international payment services provided by BIDV Binh Dinh branch in oder to recommend necessary solutions to improving the customer satisfaction. First, Thesis provides a brief explanation of customer satisfaction and its common measures, followed by the identification of key factors influencing customer satisfaction. Then, present overall current process of customer service in international payment at BIDV Binh Dinh branch. Based on that, make an assessment of performance level in each identified customer satisfaction factor.
As a result, it points out areas of improvement in current customer international payment service practice at BIDV Binh Dinh branch and propose recommendations to help enhance level of customer satisfaction. Specifically, the author aims at three detailed objectives as followed: To discuss the internal and external factors that influence the satisfaction of the customers. To propose conceptual framework and some managerial implications to BIDV Binh Dinh Branch to improve their services in oder to level up the customer satisfaction. Based on the above objectives, the current study is to answer the following research questions: How is the situation of the International payment service at BIDV Binh Dinh? What are the influencing factors of customer satisfaction on the international payment services of BIDV Binh Dinh branch? 3 How does each factor influence customer satisfaction with the Internaional payment services at BIDV Binh Dinh branch? What can BIDV Binh Dinh do to improve their customers’ satisfaction? 1.
Research subject and scope The subject of research is the customer satisfaction on the international payment service The scope of research is BIDV Binh Dinh branch in terms of geography and from 2017-2021 in terms of time. In 2017 the services was launched for the first time. To serve the research, the customers who have been using the services will be surveyed. Research Methodology The research uses the secondary data with analysis and summarization of theories from trusted articles, reports and related studies.
Also, questionaires are built to survey customers’opinions. Almost all previous studies related to customer satisfaction in international payment service applied quantitative method as core method. However, in this thesis, due to the scope of research is BIDV Binh Dinh branch where number of international payment customers is quite limited (only 39 customers), number of samples is small and not sizeable enough to apply quantitative approach. Therefore, the author decided to apply qualitative approach for the thesis.
Research significance As majority of customers of international payment at BIDV Binh Dinh branch are B2B customers possessing high volume transaction, a huge amount of effort should be devoted to customer satisfaction improvement in order to retent these customers as a key source of revenue for this activity. This research, via identifying factors that determine customer satisfaction and propose recommendations for service enhancement contribute to the customer retention and loyalty of the company. Structure of the thesis The thesis is divided into five chapters: Chapter 1. Introduction: This chapter provides background information of the reasons for choosing the topic, objectives, scope and methods of conducting the research.
Literarture review: This chapter compares previous studies on factors influencing customer satisfaction as well as introduces the International payment service in general. Futhermore, the conceptual framework of factors is built based on the suitability in Vietnam context. Research methodology: This chapter consists of the overview of the research process, research design and data analysis.