Banking Service Quality in Vietnam: a Comparison of Customers’ and Bank Staff’s Perceptions

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Banking Service Quality in Vietnam: A Comparison of Customers’ and Bank Staff’s Perceptions Yu-Ping Lee, Lecturer, Department of Business Administration, NGUYEN TUAN ANH, MBA, Graduate School of Business Administration, Ching-Yaw Chen, Professor, Graduate School of Business Administration, Shu-Te University, Kaohsiung, Taiwan

ABSTRACT This study aimed to assess banking service quality in Vietnam and to make a comparison of customers' and bank staff's perceptions of this based on six dimensions of the BSQ (bank service quality) model suggested by Bahia & Nantel (2000). All the data were collected through questionnaires which were delivered to two groups: customers and bank staff in some large banks in Vietnam. Descriptive statistical approach, ANOVA, independent t-test, and ulti-regression were then used to describe and analyze these six dimensions as well as to take them into a comparison of banking service quality perceptions between the above two groups. The results of this study showed two important conclusions. Firstly, there were three significant differences in customers’ and bank staff’s perceptions about the price, service portfolio, and general banking service quality. Secondly, both customers and bank staff had the same opinions and evaluations about the important levels of six dimensions, with effectiveness and assurance the most important factors and service portfolio as the least important one. Finally, this study was one of the first concernimg banking service quality in Vietnam, based on the BSQ (Bahia & Nantel, 2000) model. Useful insights were obtained into the importance of banking service quality perceived by customers and bank staff, which can stimulate debates and discussions on building a quality standard system, strengthening service quality in banks’ operations in Vietnam, as well as improving customers’ and bank staff’s satisfaction and loyalty. Keywords: banking service quality, perception, Vietnam INTRODUCTION While the banking industry has become more and more developed in Vietnam, many kinds of financial and banking services have progressively been born as a result. Thenceforth, Vietnamese customers have had more opportunities for selection of more suitable places to buy and use banking services and satisfy all their demands. But at the same time, they have also become more fastidious and expect higher standards from banks, such as more friendliness in service styles, more effectiveness in solving all their complaints, or more modernization in equipment and tools. To bring satisfaction to customers therefore, banks have had to improve their service quality to keep their old customers and attract more new and potential ones. But what defines a good financial service? And what criteria do banks have to meet to be considered as good ones? Many research papers and papers which have already mentioned service quality. Typically, the GAP model of service quality (Parasuraman, Zeithaml, & Berry, 1985) and the SERVQUAL approach (Parasuraman et al., 1988) that measures service quality using 22 items that are associated with the five service quality dimensions (tangibles, reliability, responsiveness, assurance and empathy) are verified in many different markets and countries. However, many of their results indicate that models and measurement scales of service quality are varied in conformity with every type of service, and every market or country (Bakakus, & Boller, 1992; Behara, Fisher, & Lemmink, 2002; Robinson, 1999). And in banking, bank service quality is commonly noted as a critical prerequisite for satisfying and retaining valued customers (Taylor & Baker, 1994). Therefore, Bahia & Nantel (2000) proposed a specific scale, the BSQ (Bank Service Quality) for measuring perceived service quality in retail banking. In Vietnam, basically, there are still very few researched models of service quality and measurement in each kind of service especially in banking. Besides, Vietnam

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