Theoretical and Practical implication

This study has critical implication for managers of various banks participated in the survey; especially in Internet Banking service areas. Firstly, service quality and perceived value is a predictor of customer satisfaction using Internet banking in Viet Nam. Under customer’s perspective, they want services provided with outstanding quality and the

highest perceived value. They are satisfied if they are served equal or higher than what they expect to. From a managerial perspective, Internet Banking providers in Vietnam need to realize that providing good Internet Banking services alone does not guarantee customer retention. Service quality is not the most important factor to differentiate competitive offerings but it is an essential and necessary element to establish customer’s belief.

Customers do not believe only on advertising and others’ advise but they use their own judgment on actual experience of Internet banking services. Hence, good service quality is a must and is expected to be offered by each Internet Banking provider in the first place.

High perceived value is also a fundamental basis to accomplish customer satisfaction.

If ever trying a bad service with low perceived value, customers will not use the second time and will switch to other rivals. A bank can improve it perceived value by increasing a small percentage on interest rates for banking deposits, decreasing a small percentage on fee charges. Buyers not only choose a bank with good services but a bank with good services and cheaper administrative costs. Constructing an attractive marketing campaign is also a good step to increase perceived value in customer’s mind. Banks can list benefits when using Internet banking services like convenience, time saving and easiness to manage. A strong guarantee and confidentiality is a plus to a bank. A bank ought to try the best to avoid a false sense of Internet Banking value; focus on the unique value compared to other banks.

Consequently, it should be noted that service quality and perceived value are fundamental attributes for retain customers. However for customer retention strategy, Internet Banking providers in Vietnam should look for other factors that can help to create satisfaction in order to sustain competitive advantage in long run. Besides, the high range of customer satisfaction can establish a well-known brand reputation in the market. This is not maintaining existing customers but also attract new groups and user segments. Banks can utilize the factors to construct an ideal image in the banking sector, increase profitability of Internet banking services, achieve higher returns and broaden market shares.

Secondly, the reputation of the Internet banking provider has a positive link with Customer Satisfaction. In fact, reputation of Internet banking services is built basing on customers’ actual experience and marketing campaigns. More and more marketing campaigns and social event using brand name will widespread and construct customer’s awareness of Internet banking services. Plus providing customers with actually high quality and value with a wide awareness will lead to a good brand reputation. If actual experience is outstanding and customers are satisfied, good reputation of Internet banking services is the critical factor to retain and widen customers segment and market share. Brand reputations play a key role due to the same service manner. If a company’s reputation is positive, then it can be assumed that customers have a positive attitude towards the bank’s services. Therefore, customer is not willing to switch to other banks. From a managerial standpoint it is important to judge reputation as the most critical factor in encouraging satisfaction among Vietnamese customers towards their Internet Banking services.

Reputation is vital for the survival of a bank in the long run, affect stock market performance via profitability and have a direct effect on the stock markets. Customer satisfaction therefore is a basis to achieve brand reputation. Or in other words, brand reputation is one of benefit from customer satisfaction.

Thirdly, customer loyalty is one important element interacting with customer satisfaction of Internet banking services. As described on chapter 2 (literature review), customer satisfaction is a must to accomplish the goal of customer loyalty. The research findings indicated a positive connection between customer satisfaction and customer loyalty.

Customers are satisfied with actual performance and actual experience of Internet Banking services, they tend to reuse and introduce for their friends, family members and needed people. It means that customer satisfaction do not only retain existing customer but broaden new ones. From a managerial viewpoint, given values in relation with customer satisfaction of Internet banking services, managers of banks can define customers’ needs and wants.

Then they can concentrate resources and build marketing campaign and management strategies that achieve the highest level of customer satisfaction. These campaign should start from what customers like and why they use our services rather other rivals. This can be done by making survey with existing customers. Making phone calls, face to face or even online surveys are used, however, this process should be done quarterly or yearly depending on the entity’ dimensions and making sure to record honest opinions and keep update the information. It is good and necessary to attract more customers but it is not at all. It costs ten times more to attract a new consumer than keeping an existing one. Therefore, solving common customer complaints and delivering outstanding customer services are essential in order to increase sales and result in attracting new customers through the existing one’

recommendation. Besides, banks can occasionally set up social events; send thanks cards or small gifts for special dates. Nowadays, customers prefer a company having a good contribution to society. Banks should take part in sports event, charity, pupil scholarships, and so on. It also brings a good image in customer mind about the banks. The higher level of satisfaction, the more loyal customers are.

With the above findings, this study analytics also served academic purposes as an empirical study in the internet banking in Vietnam, with the perspectives of customer satisfaction, service quality and perceived value.