Midterm Report on Financial Service Marketing | Nguyên Lý Marketing | Đại học Tôn Đức Thắng
In today's competitive business environment, providing high-quality services has become acrucial factor for the success of organizations in various industries, including banking. Servicequality refers to the degree to which a service meets or exceeds customer expectations. In thebanking industry, service quality plays a critical role in establishing customer loyalty, enhancingreputation, and sustaining long-term relationships with customers. Tài liệu được sưu tầm và soạn thảo dưới dạng file PDF để gửi tới các bạn cùng tham khảo, ôn tập đầy đủ kiến thức, chuẩn bị cho các buổi học thật tốt. Mời bạn đọc đón xem!
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INTRODUCTION
In today's competitive business environment, providing high-quality services has become a
crucial factor for the success of organizations in various industries, including banking. Service
quality refers to the degree to which a service meets or exceeds customer expectations. In the
banking industry, service quality plays a critical role in establishing customer loyalty, enhancing
reputation, and sustaining long-term relationships with customers.
This essay aims to define service quality and explore its importance in the banking industry
in Vietnam. It will evaluate the service quality of a selected bank using the SERVQUAL model,
identifying the gaps in service quality, and providing recommendations to improve customer
satisfaction. Additionally, this essay will discuss the impact of technology on service quality in
banks, explaining how technology has transformed the banking industry in Vietnam and how it
has affected customer satisfaction. Finally, this essay will provide a comprehensive
understanding of service quality and its importance in the banking industry, as well as the role of
technology in enhancing customer satisfaction. The recommendations and insights presented in
this essay can be used by banks to improve their service quality, maintain a competitive edge in
the market, and achieve long-term success. RESEARCH METHODOLOGY
A. Service quality and explain its importance in the banking industry in Vietnam. -
Service quality refers to the level of satisfaction that customers feel about the services
provided by a company. It is the degree to which the services provided meet or exceed
the expectations of customers. It includes factors such as reliability, responsiveness,
assurance, empathy, and tangibles. -
In the banking industry in Vietnam, service quality is of utmost importance as it directly
affects customer satisfaction, loyalty, and retention. Banks that offer high-quality services
are more likely to attract and retain customers than those that offer poor quality services. -
Vietnam's banking industry has undergone significant changes in recent years due to
technological advancements and increased competition. Customers are now more
demanding and have higher expectations when it comes to the quality of services provided by banks. -
Service quality is critical in building trust and confidence between banks and their
customers. Customers are more likely to trust banks that offer high-quality services, and
this can help to build long-term relationships. -
Furthermore, service quality plays a crucial role in the growth and success of banks in
Vietnam. A bank that provides high-quality services is more likely to attract new
customers through positive word-of-mouth marketing and retain existing customers,
leading to increased revenue and profitability.
In summary, service quality is essential in the banking industry in Vietnam. It directly
affects customer satisfaction, loyalty, retention, and profitability. Banks that prioritize service
quality and provide excellent services to their customers are more likely to succeed in the competitive market.
B. Evaluate the service quality of a bank of your choice using the SERVQUAL model.
Identify the gaps in service quality and recommend measures to improve customer satisfaction.
1. The service quality of a bank of your choice using the SERVQUAL model :
Customers are the deciding factor for the existence and growth of the bank in today's
competitive climate. The bank that captures the interest and loyalty of its clients will prosper and
expand. Today's dominant commercial approach is one that is focused on the consumer. The
challenge that banks constantly strive to solve is how to provide consumers with the highest level
of happiness (Tien, 2017, 2019; Oliver, 1997). Customers' satisfaction is the primary factor
influencing a company's success, regardless of how big or small it is. Since customers are a
company's most valuable asset, customer satisfaction is a top priority for all companies. The
battle between firms in today's market economy is getting fiercer, not just over product quality
but also over customer service before, during, and after the sale. Due to their strong belief in the
organization, loyal customers will always be prepared to support it in any circumstance. You can
easily get a lot of new consumers from your existing base of devoted clients. It is highly
important that V IEC research the elements affecting customer happiness. Accommodation
opinions can develop firmly to any desired bank. In order to draw in new clients, banks
constantly strive to deliver consumer satisfaction for their financial services. Banks must
therefore identify and quantify the aspects that affect client satisfaction. Most banks offer
product packages on the financial market that are nearly identical in terms of price, quality, and
usefulness. Of course, the bank with the best customer service, the best service quality, and the
ability to consistently go above and beyond for its clients would have the competitive advantage.
Customers are a company's most precious asset; without them, it would not exist, as Michael
LeBoeuf once stated. Or consider this statistic from a respectable service provider: "On average,
each dissatisfied customer will notify 13 friends and relatives. Or, finding a new customer is five
times more expensive than keeping an existing one. Alternatively, it takes 12 instances of
excellent customer service to make up for 1 instance of subpar service. Recognizing the
significance of the fact that Vietcombank is one of the largest joint-stock commercial banks in
Vietnam and has consistently been a leader in offering customers the best financial solutions, it is
the first and largest commercial bank in Vietnam to have implemented a successful, secure, and
practical cashless payment-card service. As the bank in Vietnam with the widest range of card
products, taking payments from all seven of the most widely used bank cards in the world,
including American Express, Visa, Master Card, JCB, and Diners Club, it holds the top spot in
card issuance and payment market share in Vietnam. Customers can choose from domestic debit
cards for the Vietcombank card service. More than 8 million clients choose domestic debit cards
from Vietcombank Connect 24, Vietcombank Connect24 Visa international debit card,
Vietcombank Mastercard, or high-end application goods bearing well-known international names
when it comes to Vietcombank card services. The card market is becoming more active in
today's competitive environment, and clients ultimately determine if a bank will still exist. As a
result, banks always work to increase client satisfaction when using their services. THE SURVICE OF THE BANK: Intangible products
"Service in the National Health” is allowed to realize that things like that like goods, but
immaterial," according to the Wikipedia entry from 2017 (http://wikipedia.org, 2017). Kotler
(2003) asserts that "service is any activity and outcome that one party can deliver to another and
is essentially intangible and does not pertain to ownership of anything." Its product may or may
not be connected to a tangible good (Kotler, 2003). Services, according to Zeithaml and Bitner
(2000), are actions, procedures, and ways of carrying out tasks that add value. delivering value to
consumers and meeting their requirements and expectations (Bui Thanh Trang & Nguyen Dong
Phong, 2014) ISO 8402:1999 states that Service is a result produced to satisfy client needs
through interactions between providers and their internal activities. Nguyen Thu Hang (2004)
also states that "services are social activities, creating things and products that do not exist in
physical form, in order to promptly, conveniently, and more efficiently serve the needs in
production and human life." Service caliber varies. Due to the fact that different customers and
even the same client at different stages will evaluate the same service quality levels differently
(Tien, 2020; Tien et al, 2020a; Tien et al, 2020b; Tien et al., 2020c). There are numerous
definitions of service, but in general, a service is an intentional action carried out to satisfy a human need. Service characteristics:
Services differ significantly from tangible objects in the following ways: Intangibility: The
service lacks a distinct shape and cannot be handled, weighed, measured, or measured like
physical goods. As a result, the service cannot be stored. Consumption and creation of services
take place simultaneously due to their inseparability. After being produced, tangible goods are
used by wholesalers, retailers, and middlemen. When it comes to services, both their creation and
consumption occur simultaneously, with both service providers and service customers present.
Because production and consumption occur concurrently, there is heterogeneity, or instability in
quality. As a result, service quality fluctuates with respect to time, place, provider, and client.
Additionally, customers place a high value on their own emotions as well as their psychological
condition at the time of the evaluation when assessing service quality. Services can't be stored,
stored, or sold like other products can. The service's performance can be prioritized in terms of
priority, but it cannot be saved for later use or "reuse" because it has already been rendered and
cannot be recovered. Consequently, a service is a good that is started when it is created and
finished right away. As a result, services differ from tangible goods in four key ways: they are
intangible, inseparable, heterogeneous, and non-storable. Service quality:
The ability of the service provider to meet or surpass the expectations of the client is referred
to as service quality (Bui Thanh Trang & Nguyen Dong Phong, 2014). Customers' perceptions of
service quality are used to measure operational efficiency, hence service quality should be
examined from the perspective of service users. According to Groross (2007), the definition of
service quality is "economic activities that generate value and profit for clients at a specific time
in a specific location" (Beneke et al., 2012). The behavior, method, and procedure of service
performance are, in essence, what we mean by service quality. According to Parasuraman
(1988), service quality is defined as the evaluation, attitude toward outstanding or excellent
customer service (Parasuraman et al., 1988). Service quality is typically defined as the
discrepancy between what customers anticipate from the service and what they actually
experience as a result of using the service.
Alternatively, service quality can be defined as the discrepancy between what clients
anticipate from a company and what they actually experiences. Customers will be unsatisfied if
perceived quality is low and expectations are higher than perceived results, and vice versa.
The relationship between service quality and customer satisfaction
Both service quality and customer satisfaction place emphasis on the criteria consumers will
use to evaluate items or services against a predetermined standard and the connection between
the two. of consumers has been extensively researched in the literature; researchers generally
hold the view that these two concepts are distinct and that service quality is the root of
contentment. Service quality and satisfaction are two independent concepts that are strongly
associated in service research, according to Parasuraman et al. (1988). According to Zeithaml &
Bitner (2000), service quality is concerned with particular components of the service, but
customer satisfaction is a generic notion that represents a client's contentment when consuming a
service. Oliver (1993) claims that Cronin & Taylor (1992) tested this link and came to the
conclusion that high-quality service increases customer satisfaction. Service delivery and quality
are related, and customer satisfaction can only be evaluated after using the service. The
consumer will never be satisfied with that service if the quality is increased without taking their
demands into consideration. Therefore, a consumer will be satisfied with a service if they believe
it to be of good quality while utilizing it. In contrast, discontent will develop if the consumer
believes the service to be of poor quality.
a. Identify the gaps in service quality and recommend measures to improve customer satisfaction
a. System of service delivery (SYS):
The efficient, standardized, and simplified arrangement and provision of banking services is
known as service delivery systematization. Along with the required service processes, banks also
have flexible processes specific to each bank. Quick and reasonable processes help banks satisfy
consumers by allowing them to respond to their needs as quickly and accurately as possible. The
service delivery system is the most crucial element of banking service quality that influences
consumers' perceptions of service quality overall, according to a Malaysian study by Abdullah et
al. (2010). In other words, customers believe that the service system plays a bigger role in
deciding the caliber of the services they receive than any other element. So, is it assumed that the
system has an impact on consumer satisfaction. b. Reliability (REL):
The capacity to perform the right service and on time the first time, as well as the ability of
the employee to accurately fulfill the promise, is referred to as reliability. Studies on reliability
include those by Karatepe et al. (2005) and Manshor et al (2011). Kwan & Hee (1994) and
Yavas et al (2004) claim that reliability is the most crucial factor. According to research by Tahir
& Bakar (2007) and Newman & Cowling (1994), reliability is not the most crucial factor but
rather comes in second or third. We discovered that reliability is a factor in the quality of
banking services through the numerous studies mentioned above. As a result, it is argued that
reliability affects how satisfied customers are with the caliber of banking services. c. Empathy (EMP):
Taking care of each individual consumer is how empathy is defined. Empathy is the most
crucial element in the service quality component in Canada, according to the most recent study
by Ladhari et al. (2010) comparing service quality discrepancies in Canada and Tunisia. This
assertion is supported by evidence from Newman & Cowling (1994), Lasser et al. (2002),
Karatepe et al. (2005), and Newman (2001). (empathy is the second most important component).
However, studies have also shown that empathy is the least crucial quality (Beerli et al., 2004;
Tahir & Bakar, 2007). The author believes that empathy generally is a factor in service quality. the effects of good service. d. Responsiveness (RES):
Employees who want to serve clients in a timely manner demonstrate their responsiveness. If
Ladhari et al. (2010)'s analysis of the differences in service quality between Tunisia and Canada
comes to the conclusion that empathy is the most crucial element in the service quality
component at banks in both countries, then reliability and responsiveness are crucial elements of
service quality, which are crucial predictors of customer satisfaction and loyalty. According to
studies by Tahir & Bakar, Wang et al., Newman (2001), and Tahir & Bakar, customer
responsiveness is also considered to be a crucial element of service quality (2007). The author's
hypothesis for the study is that consumers will be satisfied if the bank is willing to assist them
and answer swiftly and properly to their needs.
e. Transaction and service costs (PRI):
Customers' costs are the subject of transaction and service costs. Customers' willingness to
pay for goods or services is a constant source of anxiety for businesses and consumers alike, not
only in the banking sector. Customers must be satisfied in order for them to spend money on the
things and services they purchase, which means that the products and services must suit their
demands. The second most significant factor, according to research by Bahia & Nantel (2000) on
the quality of banking services in Canada, is transaction costs and service consumption. Is
service quality at Vietnamese banks influenced by transaction costs and service usage? This
hypothesis asks whether transaction costs and consumption of services are factors in service
quality that have an impact on customer satisfaction at banks in Vietnam. f. Tangible means (TAG):
The appearance, clothing of employees, and equipment and tangible assets that support the
service are tangible means. There are many differing views on whether tangible media is a
component of the quality of banking services or not. According to Yavas et al (1997), tangible
media is the most important component, whereas Tahir & Bakar (2007) ranks low in the study of
Kwan & Hee (1994). Contrary to the findings of the preceding studies, Ladhari et al. (2010)'s
study of service quality differences in Canada and Tunisia confirms that tangible means are not
important in both Canada and Tunisia. According to Arasli et al. (2005), even though banks
change the environment, customers still evaluate the quality of banking services primarily in
terms of the personal support they receive from individuals. Customers still want to transact
between people, according to Molina et al (2007), despite the automation of banking technology.
So the question is whether or not tangible media is a component of service quality that influences customer satisfaction.
C. Discuss the impact of technology on service quality in banks. Explain how
technology has changed the banking industry in Vietnam and how it has affected customer satisfaction.
1. Discuss the impact of technology on service quality in banks.
Technology has had a significant impact on service quality in banks, transforming the way
banks interact with their customers and deliver services. In Vietnam, the banking industry has
undergone a significant transformation in recent years, with the adoption of new technologies
leading to increased efficiency and improved service quality.
One of the most significant impacts of technology on service quality in banks is the
ability to provide customers with convenient and accessible services. With the rise of
mobile banking and online banking, customers can access their accounts and perform
transactions anytime and anywhere, without the need to visit a bank branch. This has
improved the overall customer experience, making banking more convenient and accessible for customers.
Another way technology has changed the banking industry in Vietnam is through the use
of data analytics and artificial intelligence. Banks can now use customer data to gain
insights into their behavior and preferences, allowing them to personalize their services
and offer more targeted marketing campaigns. This has improved the level of customer
service provided by banks, making the experience more personalized and engaging.In
addition, technology has also enabled banks to improve their security and fraud
prevention measures. With the use of biometric authentication, such as fingerprints or
facial recognition, banks can ensure that their customers' accounts are protected from
unauthorized access. This has improved customer trust and confidence in the banking
industry, leading to increased customer satisfaction. -
However, the increasing reliance on technology has also brought challenges, such as the
risk of cyber-attacks, system downtime, and technology-related errors. These challenges
can negatively impact service quality, leading to customer frustration and dissatisfaction.
In conclusion, technology has had a significant impact on service quality in banks in
Vietnam. It has transformed the industry, providing customers with more convenient, accessible,
and personalized services. However, banks must ensure that they maintain a balance between
technology and human interaction to ensure that they provide excellent service quality while
keeping up with the rapid pace of technological advance.Vietcombank, like other banks, has
been significantly impacted by technology in recent years. Technology has revolutionized the
way banks operate, from customer service to backend processes. Overall, technology has had a
positive impact on service quality in Vietcombank.
2. Explain how technololgy has changed the banking industry in Vietnam and how it
has affected customer satisfaction.
One of the most significant ways that technology has impacted service quality in
Vietcombank is by enabling the bank to offer digital services. Vietcombank has invested
heavily in its digital banking platform, which allows customers to access their accounts
and perform transactions from anywhere at any time. This has made banking more
convenient for customers and has improved the overall customer experience.
Another way that technology has improved service quality in Vietcombank is by reducing
wait times. With the use of technology, many routine banking tasks that previously
required customers to wait in line at a branch can now be completed online or through
mobile banking. This has helped to reduce wait times at branches and has improved customer satisfaction.
Technology has also enabled Vietcombank to provide more personalized service to
customers. With the use of data analytics and artificial intelligence, Vietcombank can
better understand customers' needs and preferences and can offer personalized
recommendations and solutions. This has helped to improve customer satisfaction and loyalty.
On contract, technology has also created new challenges for Vietcombank in terms of
service quality. For example, with the increasing use of digital banking, there is a risk of
cyber threats, such as phishing scams and data breaches. Vietcombank must invest in
cybersecurity measures to protect its customers' data and maintain their trust. CONCLUSION
Technology has had a significant impact on service quality in Vietcombank. It has
enabled the bank to offer digital services, reduce wait times, and provide more
personalized service. However, it has also created new challenges that Vietcombank must
address to maintain high levels of service quality.
Service quality is a critical component of the banking industry in Vietnam, as it directly
impacts customer satisfaction and loyalty. Using the SERVQUAL model to evaluate the
service quality of a selected bank revealed several gaps in meeting customer
expectations, such as responsiveness and empathy. Addressing these gaps requires
measures like improving training programs and enhancing communication with customers.
Technology has transformed the banking industry in Vietnam, enabling banks to provide
innovative and convenient services to customers. Online banking, mobile banking, and
digital payments have become increasingly popular, leading to a shift in customer
preferences and expectations. While technology has improved efficiency and
accessibility, it has also raised concerns regarding data security and privacy.
To succeed in the competitive banking industry in Vietnam, banks must prioritize service
quality and leverage technology to enhance customer satisfaction. By implementing
measures to address service quality gaps and adopting innovative technologies, banks can
differentiate themselves in the market and establish long-term relationships with
customers. Ultimately, providing high-quality services and leveraging technology are
essential for the success of banks in Vietnam