1.1. Research Background
The year of 2014 is considered a positive business year of the banking industry in Vietnam. It is the era of innovation, restructuring, improving service quality, product diversification and expansion of its network to increase competitiveness and maintain stable growth (Thu Huong, 2015). In an effort to comprehensive renovation of the banking sector, the development of retail services, such as banks, tends to provide more options for targeting on individual customers, small and medium enterprises, and individual business households (Thu Huong, 2015)1 . In addition to change customer service business year of the banking methods, various types of products, advanced services, information technology applications for improving the management and production efficiency has brought to certain some banks.
The development of retail banking services is the inevitable trend of commercial banks. For customer, retail banking services bring the convenience and time-saving in the transaction process. From the perspective of banks, retail banking services bring stable revenue, promote the expansion of the market, and improve competitiveness.
However, retail banking services of commercial banks in Vietnam still exist some shortcomings. Despite fast-growing implementation of Internet Banking service for Vietnam banks, the use of online payment has not commonly accepted by the majority of the population. The tools of non-cash payment do not received the attention of the customers. Banking services such as asset preservation, financial advisory, investment advisory service high-income customers are not widely adopted. Retail banking services in the commercial banks over time were broad and in-depth. The presence of large foreign banks, have experienced are active in the retail banking market will increase competitive pressure for domestic commercial banks. This is a challenge as
1Thu Huong ( 2015, January 27) Bank efforts to innovate and improve service quality Retrieved from http://vneconomy.vn
well as the necessary pressure to the local commercial banks further efforts to expand and improve service quality, learning management experience to progress to meet the needs of service the increasing customer (Nguyen Van Thang, 2015)2. Therefore, there is a need to evaluate the quality of e-banking services, and to study the relationship between service quality and customer satisfaction. The results will be meaningful for managers to improve e-banking services quality in the future in Vietnam.
To understand the importance of service quality; the researchers around the world have done much research on service quality.Currently, the service quality model, SERVQUAL, proposed by Parasuraman (1988) is used as the most popular model. To measure service quality, Parasuraman was given the scale consists of five components, such as reliability, responsiveness, empathy, assurance and tangible. There have been numerous SERVQUAL research and applications to evaluate the service quality in the different fields. Banks provide retail service based on the customers changing needs.
These changes have arisen as a result of economic deregulation, government policies, globalization and information communication technology. The consequence of these factors of change become competition in the financial service industry. In order to remain the competitiveness, financial institutions are providing an increasingly assorted bouquet of financial services (Pikkarainen, Kari, et al, 2006).
1.2. Problem statement and research objectives
1.2.1. Research question
Marketing theory has identified critical factors for customer satisfaction especially in service industry, but there are still limited studies on Vietnamese industry, especially in Vietnamese banking sector. Therefore, this study will answer the research questions as below:
- Are there any relationship among dimensions of SERVQUAL and customer satisfaction?
2 Nguyen Van Thang ( 2015) A look back in retail banking in commercial banks, Retrieved fromhttps://www.vietinbank.vn/web/home/vn/research/11/110406.html
- Is there any relationship between customer satisfaction and behavioral intention in retail banking service?
- What are the critical factors affect customer satisfaction the retail service in banking industry in Vietnam?
1.2.2. Research objective
- Reviewing the significant factors for service industry and deposit service in banking industry
- Identifying factors that improve the customer satisfaction
- Constructing a research model and hypotheses
- Testing the hypotheses with quantitative method
1.3. Scope of research
The focus of the study is on satisfaction and behavior intention of customer in using retail banking service in VietinBank in Hanoi. The author will conduct the survey with the customers of VietinBank.
1.4. Thesis outline
The study is divided into five chapters, which can be summarized as follows:
Chapter 1 provides an introduction to the study. It includes the reasons for conducting this study, background of the research, the objectives, research questions, scope of research, and the outline of the thesis.
Chapter 2 includes the review of related literature on service industry, retailing service, customer satisfaction and behavior intention. The chapter also gives an overview of the previous studies relating to terminological definitions. This is followed by the discussion of the relationship between factors of SERVQUAL model and customer satisfaction and behavior intention. Based on the literature review, the research model and hypotheses will be developed.
Chapter 3 presents the method and empirical studies, including the research setting, sampling, description of variables and respondent, data collection instrument, data collection procedures and methods of data analysis.
Chapter 4 shows the major findings of the study obtained from data analysis.
The results compared with the results of other previous research.
Chapter 5 draws the conclusion to the whole study, discusses some implications, limitations and recommendations for further research.