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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