CHAPTER ONE INTRODUCTION
1.1 BACKGROUND
The banking business is one of the most important businesses because it collects money from people who save money to serve any business purposes such as for investment or working capital. Banking is one of the most important businesses because it provides several services such as saving money, loans for investment, exchanging money etc. Banking is used as the main mechanism in a capitalist society to drive the country’s economy. In such capitalist countries like Thailand, it is believed that banks can provide a scarce resource that is more efficient than what is done by the government. Banks act as a main role to boost or to collapse a country’s economy. The economic crises in Thailand in 1997 and worldwide in 2008-2009 were caused by a banking or financial crisis.
The Bank of Ayudhya Plc (BAY) is the country’s fifth largest bank in terms of assets. It provides many kinds of products covering all customer demands. The details of these products can be summarized as follows (Bank of Ayudhya Public Company Limited, 2008, p. 25): 1. Consumer Banking 1.1 Deposit Products 1.2 Loan Products 1.3 Card Products 1.4 Bancassurance
2. Corporate & SMEs Banking 2.1 Loan Products
2.2 Trade Finances and Services 2.3 Treasury Products
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2.5 Investment Banking Services 2.6 Cash Management
3. Financial Institution 4. Exclusive Banking
In previous years, there has been high competition among banks. All commercial banks try to attract customers to use their products and services with many facilities. For example, they expand branches closed to customers by locating them in shopping centers and extend their service time from 15.30 to 19.00. They have continuously launched new products to serve various needs of customers. They have also improved the service of staff in order to impress the customers and so on. These developments have been done in BAY. as well. One of the obvious things is the opening of a branch in The Mall Shopping Center, Bangkapi. This bank’s branch can provide customers many services like the headquarters.
The researcher has been working for BAY for 20 years and decided to study the
satisfaction of customers with the services of BAY at nine branches located in Bangkok including the branch located at The Mall Shopping Center in Bangkapi to find out the perspective of customers with the bank and get recommendations for improving any inconvenience that customers face. This study sets out to act a springboard for BAY to improve its products and services so as to get more customers from the severely competitive Thai banking sector. The results of the study will provide information for the improvement of any of the bank’s services to attract new customers to the bank and maintain the bank’s existing loyal customers.
1.2 STATEMENT OF THE PROBLEM
This study aims to answer the following questions: 1.2.1 Main Question
Are the customers satisfied with the service provided by BAY? 1.2.2 Sub-Questions
1. To what degree are the customers satisfied with the services provided by BAY?
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2. What are the characteristics of customers using BAY’s services?
1.3 OBJECTIVES OF THE STUDY
This research has the following objectives: 1.3.1 Main Objective
To measure satisfaction of customers with services of BAY. 1.3.2 Sub-Objectives
1. To identify the characteristics of customers who use services of BAY. 2. To explore the suggestions of customers to improve services at BAY.
1.4 VARIABLES AND DEFINITIONS 1.4.1 Independent Variables
The independent variables of this study are services of BAY that customers obtained.
1.4.2 Dependent Variables
The dependent variables are the degree of satisfaction of the customers with the services of BAY in four aspects namely (1) satisfaction with products, (2) satisfaction with methods and procedures, (3) satisfaction with staff, and (4) satisfaction with facilities and environment.
The definition of the terms of this study is as follows:
Customer Customers of the Bank of Ayudhya Plc.
Customer satisfaction Levels of satisfaction of customers with the
services of Bank of Ayudhya Plc. Services of the Bank of
Ayudhya Plc
General services that BAY provides customers through its products, methods and procedures, staff, and facilities and environment.
BAY’s products Products that BAY have launched including:
1. Deposit products Current Account, Savings Account, Time Deposit,
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1. Consumer Loan: Home Loan, Personal Loan, and Auto Loan
2. Loan products
2. Corporate & SME Banking: Overdraft (O/D), Promissory Note (P/N), Factoring Loan, Term Loan, Machinery or Equipment Leasing,
Guarantee/Aval, and Trade Finance and Services
3. Card products Any Credit Cards
4. Bancassurance Life Insurance, Non-life Insurance, Cargo
Insurance, and Trade/Export Credit Insurance
5. Treasury products Foreign Currency Purchase/Sale, Hedging
Products, and Treasury Advisory Service
6. Investment products Government Bonds, State Owned Enterprise
Bonds, State Agency Bond, Treasury Bills, Corporate Bonds, Mutual Fund, Fixed Income Fund, Equity Fund, Long Term Equity Fund (LTF), and Retirement Mutual Fund (RMF)
7. Investment Banking Services
Financial Advisory, Debt Underwriting Services, and Syndicate Facility
1. Domestic Money Transfer Services: Money Transfer between BAY Accounts, Inter Bank Transfer Service, Money Transfer without Bank Account, and Third Party Money Transfer Service via BahtNet
8. Money transfer or Remittance
2. International Money Transfer Services: SWIFT
9. Cash management Payment Services, Collection Services, and
Liquidity Management
1.5 SCOPE OF THE STUDY
This study aims to measure the level of satisfaction of customers with the services of BAY in four aspects consisting of products, methods and procedures, staff, and facilities and environment. Nevertheless, it is going to identify the characteristics
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of customers who use these services and explore customers’ suggestions for improvement. The study focuses only on customers at branches in the Bangkok area.
1.6 SIGNIFICANCE OF THE STUDY
This study of customer satisfaction with the services of BAY at branches in the Bangkok area is significant in several aspects.
1.6.1 The results of this study will be submitted to the Head of Distribution Group and Head of Consumer Banking Group, Bank of Ayudhya Plc to use as resourceful information for improving services; and
1.6.2 This study can be used as a guideline for further research in other branches of BAY.
1.7 ORGANIZATION OF THE STUDY
The study of satisfaction of customers with the services of BAY at nine branches in the Bangkok area is divided into five chapters.
Chapter One provides introduction talking about background, statement of the problem, objectives of the study, variables and definitions, scope of the study, significance of the study, and organization of the study.
Chapter Two reviews literature describing relevant theory, relevant concept, and relevant research.
Chapter Three identifies methodology explaining subjects, materials, procedures, and data analysis.
Chapter Four displays the results stating demographic information of customers, characteristics of customers dealing with BAY, satisfaction of customers with services of BAY, and suggestions of customers for improvement.
The last chapter presents a summary of the study, summary of the findings, discussion, conclusions, and recommendations for further research.
