CHAPTER 4: RESEARCH RESULTS
4.4 TESTING RESEARCH MODEL
4.4.3 ANOVA analysis
In previous sections, we tested the factors affecting customer satisfaction and the level of customer satisfaction with the Bank as well. In this section of ANOVA analysis, we will exam the influence of the relationship between the length of use and the amount of banks conducting transaction on customer satisfaction:
Hypothesis H0: there is no difference in satisfaction among customers having different length of use.
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Hypothesis H1: the number of banks at which the customers have transaction does not affect customer satisfaction.
The result of ANOVA analysis (APPENDIX 7) shows that Hypothesis H0 and Hypothesis H1 are rejected (sig value is too small and F value is quite high). Therefore, we can conclude that there is a difference in satisfaction among customers having different length of use and amount of banks at which they have transaction:
4.5 RESEARCH RESULTS 4.5.1 Identifying customer needs
According to results of descriptive statistics, what customers expect most when they do transaction with the Bank are:
Firstly: The Bank will accurately and quickly do transactions because this is the core service quality of the Bank. If the Bank makes mistakes in the process of implementing services, not only are operations of the business affected but also customers are disappointed and do not have a good impression on the Bank. To meet this demand, the Bank should give priority to the improvement of service quality of the Operations Department to ensure accuracy and timeliness of services offered because this is the Department which directly deals with customers.
Secondly, customers also want the Bank to have policies of affordable prices and competitive interest rate so that they feel that their spending is reasonable. As presented in the theoretical basis, the perception of competitiveness about prices is closely related to the service quality that customers receive. Therefore, customers’ expectation in terms of prices is easy to understand.
Thirdly, customers expect the Bank to provide various services to fully meet customers’
diversified demand. Together with increasingly expanding investment and business operations, customers hope that their new arising needs will be responsive. For this issue, depending on the appropriate resources and time, the Bank will deploy new services on the basis of assessing the popularity of service and adequate preparation of the Bank.
Three expectations above are things that customers expect most from the Bank. In addition, customers also hope that the Bank has a wide network of agents as well as talented and professional staffs to implement most effectively transactions requested. Therefore, when developing marketing and development strategies, the Bank should pay attention to these points to meet customers’ expectation.
4.5.2 Factors affecting satisfaction of customers
On the basis of 16 identified factors in the qualitative research (8 factors with 28 variables), by reliability analysis (7 factors with 26 variables) and factor analysis (6 factors
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with 23 observed variables), the model of factors affecting customer satisfaction in order of standardized Beta is tested in the regression analysis presented in Figure 4.4.
Figure 4.4: Model of factors affecting customer satisfaction
Figure 4.4 shows us six factors affecting customer satisfaction with different levels.
However, the gap is not significant (from 0.245 to 0.309) because all factors affect customer satisfaction and the determination of the important level of factors only fluctuates a little.
Firstly, PRICE COMPETITIVENESS (0.309) has the highest standardized Beta so this factor has the greatest impact on customer satisfaction according to regression model. It is the fact that in the current competitive environment, there are many domestic and foreign banks, customers have more choices and become more sensitive to price factor than before.
It is obvious that Banking Sector has currently been one of the most sharply growing industries in Vietnam. Therefore, attracting and retaining customers become extremely necessary. Banks almost take the decision on collaboration with enterprises in the past but this relationship has become balanced and clearly two-way relationship which the two sides need each other.
Service Style
Convenience
Corporate Image
Price Competitiveness
Tangibles
Credibility
Customer Satisfaction
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Statistical results show that customers have high satisfaction with the policies on prices and interest rates applied by the Bank (Mean > 0.4). Therefore, we can confirm that the price competitiveness of HSBC in customer perception is totally acceptable. In addition, with a range of experiences in banking sector, HSBC can know demands of customers and market situation quickly so it has appropriate adjustment and flexibility in pricing policy. As a result, customer satisfaction of price factor has been reinforced. Therefore, maintaining and applying flexibly pricing policy is essential for the Bank so that customers can always feel that their spending is compatible with the service they receive.
Secondly, CORPORATE IMAGE (0.296) has the second highest standardized Beta. It shows that this factor has great effect on customer satisfaction on the basis of impact on customer perception about the Bank and quality of services provided by the Bank. To create a good image of HSBC in customers, it requires a long process of creation in many areas such as perfect service quality, positive social activities, efficient marketing strategy, professional staffs and sustainable development policy, etc. from the Bank.
According to customer perception, HSBC has built a high credibility of customer (Mean:
3.87) and developed the image of HSBC with the criteria of which customer is the top priority and brings professional style in all service activities to provide customer the highest satisfaction. This is positive responses of customers which recognize achievements of HSBC in many years. They should be maintained and promoted in the future.
Thirdly, CREDIBILITY (0.286) has the third highest standardized Beta. It shows that in the banking sector, customer trust plays an extremely important role to the development of banks. Customers only make deals with bank which makes them feel safe and confident. In other words, they “choose who to give gold to” on the basis of prerequisite of high safety and credibility. In terms of this factor, customers have high satisfaction with HSBC (Mean of observed variables are greater than 3.6). Apart from safety criteria, CREDIBILITY is also measured via other assessments. For example, the Bank performs exactly tasks, keeps secretly customer information, and sends regularly statements as well as whether it is willing to listen to customers’ opinion or not. However, because this is obligatory element of banks, the difference in customers’ assessment derives from the way the Bank performs.
Fourthly, CONVENIENCE (0.275) has impact on customer satisfaction as this factor helps customers to use directly and easily services of the Bank. In other words, it is the factor that stimulates customers to use services on the basis of giving them comfort, convenience and ease transactions with the Bank. The higher value of this factor is, the higher customer satisfaction is and vice versa.
The scales to measure CONVENIENCE reply on five aspects of dealership network, 45
transaction procedures, transaction location, types of services provided and ability to respond quickly to new services of the Bank. According to customers’ assessment, transactions with the Bank are relatively convenient but the satisfaction level is not very high (Mean from 3.42 to 3.59). Customers are most satisfied with the wide dealer network so they are able to perform transactions quickly and smoothly (Mean: 3.59). The lowest is the service catalogue (Mean: 3.42). Although the Bank usually deploys many services for customer, it is the fact that customers’ demands change faster. Therefore, the Bank could not meet 100% of their expectation. Thus, the Bank has to learn to improve this factor.
Fifthly, SERVICE STYLE (0.272) always plays an important role in the service sector, especially in the sectors which highly require customer contact like Banking Sector.
SERVICE STYLE is closely attached to “human” element in the aspects of qualification, ability of business process, complaints solving, and polite style and efficient contact with customers. Customers receive services through contacts with employees and understand more about the Bank thanks to these people as well. It is also understood that the “human”
element is the bridge between the Bank and customers so that customers’ demand can be fully explored and met. SERVICE STYLE is the factor which expresses most clearly the feature “how services are provided” in service quality model mentioned by Grönroos.
SERVICE STYLE is also accompanied with CORPORATE IMAGE. Therefore, it has the great impact on customer satisfaction.
Sixthly, TANGIBLES (0.245) also impacts customer satisfaction on the basis of creating interest and attractiveness for customers when they make deals with the Bank. For individual clients, the influence of this factor is further demonstrated. TANGIBLES is what customers can feel about the Bank through their senses such as documents of the Bank, transaction documents, staff uniform or facilities, etc. TANGIBLES is a component of service quality, affecting the quality of services, thus it affects customer satisfaction.
In conclusion, the synthesis of scales of 6 factors affecting customer satisfaction in the research model is described in the following table:
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SERVICE STYLE (PCPV) 1 PCPV01 Staffs of the Bank are well-qualified
2 PCPV02 Staffs of the Bank perform accurately and timely services 3 PCPV03 Staffs of the Bank satisfactorily deal with customer complaints 4 PCPV05 Staffs of the Bank are very polite and attentive to customers 5 TXKH02 Staffs of the Bank frequently make contacts with customers
CONVENIENCE (STT) 6 STT01 The Bank has wide dealer network
7 STT02 Transaction procedures are easy and quick
8 STT03 The Bank has convenient transaction locations for customers 9 DMDV01 The Bank has various services
10 DMDV02
The Bankis always in the forefront of providing new services to meet the increasing needs of customers
CREDIBILITY (STN)
11 STN01 The Bank performs accurate service right the first time
12 STN02 The Bank keeps customers’ information and transactions confidential 13 STN03 The Bank sends regularly and timely statements
14 TXKH01 The Bank has the 24 hour customer line
15 TXKH04 The Bank always listens to customers’ feedback TANGIBLES (SHH)
16 SHH02
The Bank has attractive documents, books and photos introducing services
17 SHH03 The Bank has clear and accurate transaction documents 18 SHH04 The Bank’s staff is dressed politely and impressively
CORPORATE IMAGE (HADN)
19 HADN01
The Bank is always in the forefront of innovation and social activities
20 HADN02 The Bank always keeps credibility of customers 21 HADN03 The Bank has strategies of sustainable development
PRICE COMPETITIVENESS (TCTG) 22 TCTG01 The Bank applies competitive interest rates 23 TCTG02 Transaction costs are reasonable
Table 4.11: Synthesis of scales of customer satisfaction
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4.5.3 Customer satisfaction measurement
HSBC is one of the best foreign banks in Vietnam so it is easy to understand that customers have a high level of satisfaction with the Bank (from satisfied to very satisfied).
The customer satisfaction measurement is based on three scales of service quality (Mean:
4.73), ability to meet demand (Mean: 4.7) and continuing to use the services (Mean: 4.71).
The service quality is the first condition to bring customer satisfaction in sequence. After that, if the service quality can fully meet customers’ demand, they will be more satisfied and use services of the Bank longer. Both the three scales correlate closely in the determination of customer satisfaction with the Bank.
This result demonstrates the correctness of the criteria “All for our customers” which has been applied by HSBC for many years. Therefore, the Bank has much success in bringing customers the high satisfaction in the services. However, this is a big pressure for the Bank to better its good ones at present. As a result, the Bank needs to make more effort to “get over itself” to maintain and bring customers higher satisfaction.
4.5.4 Relationship between length of use as well as number of banks for transactions and customer satisfaction
According to the testing result, the longer customers use services of the Bank, the higher their satisfaction is. Meanwhile, the more banks customers use, the lower their satisfaction is. This can be explained that, when customers use the Bank for a long time, they will be confident about the Bank than new customers will. Moreover, customers understand more about the Bank and have closer relationship when they use its services for a long time. They definitely are loyal customers who are willing to accompany and support the Bank for a long time.
Similarly, those who make deals with many banks will have more choices and comparison than people who work with fewer banks. Therefore, the satisfaction is easy to reduce. Together with the development of investment activity in Vietnam, a range of banks appears; therefore, customers have more opportunities. This is a favorable condition for customers but also big pressure for the Bank to bring highest satisfaction to customers.
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CHAPTER 5 CONCLUSION AND RECOMMENDATIONS
5.1 CONCLUSION
Customer satisfaction is a vital element and the objective of all banks. Along with the increasing competition in the business environment, learning about customers need and factors affecting customer satisfaction has become more and more necessary. Therefore, the research helps the implementation of marketing activities to be more effective as well as improvement policies of the Bank to be more completed.
In the service sector, particularly banking sector, the role of satisfying the customers’
need is more and more important because it comes from the close interaction between customers and banks as well as the positive impacts which banks gained. More specifically, if the Bank gives customers higher satisfaction, the ability to continuously use services;
support new products and services of the Bank; recommend the Bank to their partners;
become loyal customers of the Bank and contribute to increasing sales, market share, profitability and position of the Bank in the market is greater.
With the topic “Research on the satisfaction of enterprises using products and services of HSBC,” objectives mentioned in the research are respectively presented through the descriptive statistics, reliability analysis, factor analysis, regression analysis and ANOVA together with the review of the Bank’s development policy and common correlations in the process of developing research model. Firstly, things customers want most is that the Bank performs services accurately, quickly with competitive prices. Secondly, factors affecting customer satisfaction include service quality (service style, convenience, credibility and tangibles), prices and corporate image. Thirdly, the level of customer satisfaction with HSBC is very high in terms of three aspects of service quality, ability to meet demands and continuing to use the Bank’s services.
One more thing to note is that customer satisfaction is the result of many factors.
Therefore, the task of bring customer satisfaction should be done regularly and in the long term. Because of the changing business environment, the application of research findings needs to be handled flexibly and adjusted properly.
Finally, the results above are reliable input sources for marketing policy and help the Bank understand more about customers’ need as well as their evaluation of its service quality. Consequently, the Bank can affirm “its position in the eyes of customers” to improve quality and customer satisfaction.
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5.2 SOME RECOMMENDATIONS FOR IMPROVING CUSTOMER SATISFACTION
Learning about customer satisfaction is very important but solutions to boost level of customer satisfaction are more significant. With the position of “The best foreign Bank in Vietnam for many years”, HSBC has provided high satisfaction when customers use its services. Therefore, solutions must initially focus on consolidating achievements and better service value. In addition, when making the improvement, the Bank needs to pay attention to the uniformity and consistency of solutions presented in the following aspects:
5.2.1 Oriented development strategy
The development strategy “All for our customers” which HSBC has been pursuing for many years has constantly provided customers with high satisfaction and has been suitable for its sustainable development. With the presence of many large financial institutions in Vietnam, this strategy is more and more important because it is the “lodestar” for all services and attaches customers to the Bank longer. However, to adapt best to each specific period, the customer-oriented development strategy can be adjusted more specifically as “To provide the best financial services for customers”, “Always be pioneer to fully meet customers’ need”, “All for customer satisfaction”, etc.
5.2.2 Improving the service quality
Promoting e-banking services to enhance the speed of transactions
Developing value added services: consultancy, after-sales, performance package, performance upon request, VIP club, etc.
Simplifying transaction procedure
Organizing seminars presenting new products/services to customers Ensuring the accuracy and timeliness of transactions
Deploying new services such as transactions incurred, guarantee, finance leasing, etc. to meet the increasing demand of limiting financial risk of customers
Developing the consistent and smooth operational process to reduce the waiting time of customers
Establishing hotline to serve customers quickly at anytime and anywhere Improving banking technology
Modernizing communication system for customers to easily contact the Bank
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5.2.3 Completing the professional service style of staffs
Developing professional training courses at home and abroad to raise staffs’
qualification
Adding skills to improve customer satisfaction in the programs of training courses Recruiting skilled staffs for the effective work quality
Having policies on bonuses and recognizing employees’ efforts and contribution to satisfy customers’ demands
Taking care of remuneration/interest policies for employee satisfaction and they will make customers satisfied with services of the Bank
5.2.4 Ensuring competitive pricing
Making survey on service prices of other banks to reconsider price policy of the Bank Updating information on market volatility as well as transaction prices to reinforce the trust of customers for competitive pricing of the Bank
Promoting flexibility of price policy
Applying direct and indirect methods of transaction cost calculation
Extending charging period quarterly/yearly instead of charging according to each transaction
Applying special rates for deposits with the large amount
Offering free transactions for customers with bank balance over the limit specified by the Bank
5.2.5 Creating professional working environment
Creating working culture “All for our customers” in the awareness of all the Bank’s staffs
Fully equipped with necessary facilities
Paying attention on quality of job completion “things must be done on time regardless working time”
Enhancing the independence of problem solving
Strengthening the cooperation and assistance between departments Nurturing the enthusiasm and sense of raising qualification of staffs
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5.2.6 Developing and cooperating with other financial institutions Promoting strengths in finance and management
Expanding transaction and customer network
Discovering new investment opportunities according to the criterion of “mutually beneficial partnership”
Improving the Bank’s position
5.2.7 Reinforcing good image of the Bank Respecting commitments to customers
Contributing to society and community such as fund raising programs, sports activities for charitable purposes and financing public projects
Strengthening relationships with customers Ensuring correct and fast service quality Developing sustainable development strategies
Be leading position in service innovation and meeting customers demands 5.3 LIMITATIONS AND FURTHER RESEARCHES
The research has made a positive contribution to learning about customers and recognizing the Bank’s position. However, the paper also has certain restrictions on subjects and scope of research:
Subjects of the research are Enterprises with specific characteristics of service demand, evaluation criteria for service quality and perception of service prices which are different
Subjects of the research are Enterprises with specific characteristics of service demand, evaluation criteria for service quality and perception of service prices which are different