Analyzing factors that affect Customer loyalty - the case of Vietinbank branch 4

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VIETNAM NATIONAL UNIVERSITY -HOCHIMINH CITY INTERNATIONAL UNIVERSITY

SCHOOL OF BUSINESS ADMINISTRATION

Analyzing factors that affect Customer loyalty - the case of

Vietinbank branch 4

In Partial Fulfillment of the Requirement of the Degree of BACHELOR OF ART in BUSINESS ADMINISTRATION

Student's name : VUONG THE BAO (BAIU09480) Advisor : PhD HO NHUT QUANG

Ho Chi Minh city, Vietnam 2013

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APPROVED BY :Advisor APPROVED BY: Committee Ho Nhut Quang, PhD

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ACKNOWLEDGMENTS

During the time working on this thesis, I was learned and experienced a lot of valuable things for myself and my future career and this thesis would not be done if there was not the support and help of many people. This is my pleasure to appreciate those people who motivated me to complete this thesis.

Firstly, I feel so thankful to my advisor, Mr Ho Nhut Quang , who was encouraged, guided, supported and motivated me from the beginning to the end of the work. His feedbacks, comments, complaints and advises which were gave me a lot of great lessons to understand and do in the right way. Once again, to you sir, thank you.

Thanking Ms , who spent a lot of valuable time to help, support and give me many good advises about the study, especially the questionnaire's structure. Thank you.

Another thanks go to my friends in International University, National University in Ho Chi Minh city. They are Bang, Trang, Tung, Đạt, Nghĩa and Cường. They supported and helped me to understand clearly about the way to run the SPSS and they gave me a lot of motivation to complete the thesis. Thank you.

Last but not least, I want to say a big thank to my family for their love and supports. They are the strongest power and motivation which made me stronger in trying to complete the thesis. Thank you.

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iv TABLE OF CONTENTS LIST OF TABLES...viii LIST OF FIGURES...xi ABSTRACT...xii I. CHAPTER I - INTRODUCTION...1 1.1 Background... 1 1.2 Problem statement...2 1.3 Research question...3 1.4 Objective of research ...3

1.5 Research scope and limitations...3

1.6 Significance of research...3

II. CHAPTER II - LITERATURE REVIEW...4

2.1 Customer loyalty...4

2.2 Brand awareness...5

2.3 Customer satisfaction...5

2.4 Perception value...6

2.5 Service quality and Servqual model...7

2.6 Previous study...9

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v

III. CHAPTER III - METHODOLOGY...15

3.1 Study design...16 3.2 Target sample...17 3.3 Sample size...17 3.4 Questionnaire design...17 3.5 Data collection...22 3.6 Data analysis...23

IV. CHAPTER IV- DATA ANALYSIS AND RESULTS...24

4.1 Sample Demographics...24 4.2 Descriptive Analysis...26 4.2.1 Tangible...26 4.2.2 Reliabilities...27 4.2.3 Responsiveness...29 4.2.4 Assurance...30 4.2.5 Empathy...31 4.2.6 Customer Satisfaction...33 4.2.7 Perception Value...34 4.2.8 Brand Awareness...35 4.2.9 Customer Loyalty...36

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vi 4.3 Reliability test...37 4.3.1 Tangible...38 4.3.2 Reliabilities...39 4.3.3 Responsiveness...41 4.3.4 Assurance...42 4.3.5 Empathy...43 4.3.6 Customer Satisfaction...44 4.3.7 Perception Value...45 4.3.8 Brand Awareness...46 4.3.9 Customer Loyalty...47

4.4 Exploratory Factor Analysis (EFA)...48

4.4.1 Independent Variables...48

4.4.2 Dependent Variable...55

4.5 Regression and Hypothesis Test...56

4.5.1 H1,H2,H3...56

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vii

V. CHAPTER V. CONCLUSION AND RECOMMENDATION...68

5.1 Conclusion...68

5.2 Recommendation...71

5.3 Limitation of the study...73

5.4 Recommendation for further study...73

REFERENCES...74

APPENDIX A. SPSS's results...85

APPENDIX B. Questionnaire in English...91

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viii

LIST OF TABLES

Table 1. Summary of adjusted measurement scale...18

Table 2. Descriptive statistics of Tangible...26

Table 3. Descriptive statistics of Reliabilities...28

Table 4. Descriptive statistics of Responsiveness...29

Table 5. Descriptive statistics of Assurance...30

Table 6. Descriptive statistics of Empathy...32

Table 7. Descriptive statistics of Satisfaction...33

Table 8. Descriptive statistics of Perception value...34

Table 9. Descriptive statistics of Brand awareness...35

Table 10. Descriptive statistics of Customer loyalty...36

Table 11. Reliability test of Tangible...38

Table 12. Reliability test of Reliability...39

Table 13. New Reliability test of Reliability...40

Table 14. Reliability test of Responsiveness...41

Table 15. Reliability test of Assurance...42

Table 16. Reliability test of Empathy...43

Table17. Reliability test of Satisfaction...44

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ix

Table 19. New Reliability test of Perception value...46

Table 20. Reliability test of Brand awareness...46

Table 21. Reliability of Customer loyalty...47

Table 22. Summary of EFA test of Tangible, Reliability, Responsiveness, Assurance and Empathy...49

Table 23. KMO test and Bartlett's test of Tangible, Reliability, Responsiveness, Assurance and Empathy...51

Table 24. Summary of EFA test of Satisfaction , Perception value and Brand awarenes.53 Table 25. KMO test and Bartlett's test of Satisfaction , Perception value and Brand awareness...55

Table 26. KMO test and Bartlett's test of Customer loyalty...55

Table 27. Correlation test of H1, H2, H3...56

Table 28. Model summary of H1,H2 and H3...57

Table 29. ANOVA of H1, H2 and H3...57

Table 30. Coefficients of H1,H2 and H3...58

Table 31. New model summary of H1,H2 and H3...59

Table 32. New ANOVA of H1,H2 and H3...59

Table 33. New Coefficients of H1,H2 and H3...59

Table 34. Coefficients of Stage 1...61

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x

Table 36. New Coefficients of stage 2...63

Table 37. The confirmation of hypothesis...66

Table 38 Correlation of Stage 1...85

Table 39 Model summary of Stage 1...86

Table 40 ANOVA of Stage 1...87

Table 41 Correlation of Stage 2...87

Table 42 Model summary of stage 2...89

Table 43 ANOVA of Stage 2...89

Table 44 New model summary of Stage 2...90

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xi

LIST OF FIGURES

Figure 1. Tor Wallin Andreasse and Bodil Lindestad (1998)'s model...9

Figure 2. Serkan Aydin, Gokhan Ozer, (2005)'s model...10

Figure3. Luc Honore Petnji Yaya, Frederic Marimon, Marti Casadesus, (2011)'s model11 Figure 4. General conceptual model of the Marketing group of IU- staff (2012)...12

Figure 5. Conceptual model of the thesis...13

Figure 6. Research framework...15

Figure 7. Proportion of respondents' gender...24

Figure 8. Proportion of respondents' age...25

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xii ABSTRACT

Vietnam's economy is more and more developing which gives the companies great chances for gaining the successes. Moreover, customer loyalty is a key success of every companies which helps them to build a strong advantage to compete with others.

The main aim of this study is to analyzing factors that affect customer loyalty at Vietinbank branch 4. In order to evaluate this term, the research give out the problems what need to be solved : (1) Which factors affect customer loyalty at Vietinbank branch 4, (2) How to improve customer loyalty at Vietinbank branch 4.

The study was start off with conducting a theoretical framework consisting of independent factors and dependent factor (customer loyalty). The next step was developing the questionnaire and distributing to the customers. After that, all of data which was collected from previous steps will be used to run the analysis testing to get the final result to give the conclusion and recommendations.

From the finding of the study, there are two factors which have direct impact (Perception value and Brand awareness) and 5 factors which have indirect impact (Tangible, Responsiveness, Assurance, Reliabilities and Empathy) on customer loyalty at Vietinank branch 4. Although the limitation of time and ability , the result of this study can be reliable and useful for further researches.

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1 CHAPTER I

INTRODUCTION

1.1 Background

Banks are playing a very essential role in the economic development of a nation. The strength of the economy is nearly connected to the soundness of its banking system. Vietnam's economy is more and more developing. That is a great chance for companies to gain more successes. Moreover, there has been a fast increase in the number of financial institutions. In 2007, there were 38 domestic banks and 5 wholly foreign-owned banks. Two years later, the number of domestic banks has grown to 47 and wholly foreign-owned ones to 12 (www.sbv.gov.vn) .As a result, customers have many choices of the Banking services. So that, the banks, especially Vietinbank, should have a strong foundation and a suitable strategic management which might help them to survive and develop in the high competitive market. According to Kotler (2004), loyalty factor is considered as key value of marketing strategy in the banking service and others. It also helps banks to make more profit and reduce the cost. Additional," a loyal customer may bring many benefits to the organization, contribute to the improvement of the growth rate and to the increase of the safety degree or organizational stability" (Reichheld and Sasser, 1990; Grönroos, Rust and Oliver, 1994; Berry, Heskett, 1995; Diller, 1997; Gummeson, 1999 etc.). That brings to gaining customer loyalty is one of the most important issues for many firms today; and ensuring that a customer stays with the firm costs more than acquiring a new one (Dick and Basu , 1994). So that creating customer loyalty is a great strategy which not only does not cost so much but also makes advantages for the firms.

Although Vietinbank is one of the biggest banks in Vietnam, it might have some problems in term of customer loyalty which can make disadvantages to Vietinbank in developing and competing in the market. So this study which might be the first one about

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Vietinbank in term of customer loyalty evaluation is conducted to evaluate and make some suggestions to improve its problems. That is also the foundation to improve and get more solid successes in future.

1.2 Problem statement

According to Farid Subkhan (2005), loyal customers are those who have the enthusiasm about the brands or products they use, the more zealous a customer is, the more the profit contributed to the brand. Ribbink al.,( 2004) also mentions that customer loyalty is important in that it has a positive effect on long-term profitability .

Moreover, Vietinbank branch 4 is located in district 4 which is rated as a poor district in Ho Chi Minh City. District 4 has so little advantage with small production, no large enterprise, complex residential components and mostly poor working people. When the bridges which link district 4 to district 1 were opened, the commercial services in district 4 were more developed with the establishment of many commercial banks. So that, it led to a very aggressive competition between Vietinbank branch 4 and other banks for the customers to win the market.

After all, there is a need to evaluate and understand clearly the factors which have positive impact on Customer loyalty of Vietinbank branch 4 in order to make competitive advantages to the others.

From the above reasons, I chose the topic as follow:

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3 1.3 Research question

Particularly, this research would try to answer the following questions:

 Which factors affect customer loyalty in Vietinbank branch 4?

 How to improve customer loyalty in Vietinbank branch 4? 1.4 Objective of research

To answer the research questions above, objectives of the thesis would be:

 To review theories and build up a conceptual framework for the study.

 To evaluate factors affecting customer loyalty in Vietinbank branch 4.

 To suggest measures for improving customer loyalty of Vietinbank branch 4.

1.5 Research scope and limitations

This study just focused on Vietinbank branch 4th not all of Vietinbank's branches. Additional, with only 200 samples will be taken, it might limit the external validity of the findings. The study focused on the customers in Ho Chi Minh City only .Moreover, Secondary and Primary Data collected and used was limited to period between 2011 and 2013.

1.6 Significance of research

This research was a chance for me to apply the theories and knowledge that I have learned into a real case of life. It also gave me experiences what will be useful in my future career. At the same time, I hope that the result of this research can help to improve the services quality of Vietinbank especially customer loyalty and increase the sale of Vietinbank in future.

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4 CHAPTER II

LITERATURE REVIEW

2.1 Customer loyalty

According to Jacoby and Keyner (1973) "loyalty is the behavioral reaction based on prejudice as the function of psychological processes by the decision maker in the existence of one or more alternative in time". Besides that, loyalty is the commitment in purchasing a product or service in the future (Bennett, Härtel and McColl-Kennedy, 2005). Zeithaml and Bitner ( 1996) stated that factors of loyalty are an organization's most reliable success .Zeithaml et al. (1996) defined customer loyalty as the willingness to stay with current service provider. The loyalty customers are supporter concept for the service can be defined: providing positive word-of-mouth, commendation the service to other, encouraging others to use service and protecting the service provider and create higher profits for corporation. Additionally, Customer loyalty was measured as the base of competitive advantage and has a essential role on company‟s performance (Rust et al., 2000). Previous research studies showed that corporation can gain more profit through retaining their current customers rather than to conquer previous ones (Hogan et al., 2003, Lee-Kelley et al., 2003). For more details, firms spend more than five times as much to reach a new customer than to retaining an existing one (Kotler and Keller, 2006; Wills, 2009).

According to Payne (1993), many banking services are sensitive in understanding brand image, service quality and customer satisfaction which are proved as a key determinant of customer loyalty . Moreover, perceived value and satisfaction have been recommended as key elements to explain loyalty behavior in the markets (Anderson, 1995; Heskett, Sasser and Schlesinger, 1997; Flint, Woodruff and Gardial, 2002 ; Ulaga and Schultz, 2006)

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5 2.2 Brand awareness

According to Keller (2003) brand awareness was defined as “the customers‟ ability to recall and recognize the brand as reflected by their ability to identify the brand under different conditions and to link the brand name, logo, symbol... to certain relations in memory". It evaluated the percentage of the target market which is aware of a brand name (Bovee et al, 1995). According to Aaker (1996), brand awareness was considered according to the different ways in which consumers remember a brand, which included:

Brand recognition: consumers‟ ability to verify prior exposure to that brand when given the cue about brands .

Brand recall: consumers‟ ability to get back the brand from memory given the product category.

Top-of-mind brand: the brand name which first comes to mind when a consumer is offered with the name of a product classification.

Dominant Brand: the single brand which is provided by most consumers

Aaker and Keller (1990) stated that a brand with high awareness can encourage brand loyalty to consumers. In additional, brand awareness had the extreme total effects on brand loyalty (Peng ,2006). Moreover, brand awareness had a positive relation to brand loyalty (Aaker & Keller, 1990; Peng, 2006; Wu, 2002; Chou, 2005). According to Aaker (1991) It also affected perceptions and attitudes, and could be a key for brand loyalty.

2.3 Customer Satisfaction

The feeling of pleasure and expectation fulfillment was satisfaction (Zairi, 2000). Customer satisfaction was defined as an "evaluation of the perceived discrepancy between prior expectations and the actual performance of the product" (Tse and Wilton, 1988, Oliver 1999). In another way, according to Kim, Park and Jeong (2004) customer

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satisfaction was customer's counteraction to the satisfaction, and customer's conclusion of satisfaction level. In addition, customer satisfaction was actually the way that the ongoing performance was identified by customers ( Gustafsson, Johnson and Roos, 2005). In any organization satisfaction of customer was more important, because if your customer was satisfied with your services or products, your company will be at a good foothold in the market. According to Hennig-Thurau and Klee, (1997) satisfaction of customers with products and services of a company was considered as most important factor leading toward competitiveness and success. Moreover, previous researchers have found that satisfaction of the customers could help the brands to build long and profitable relationships with their customers (Eshghi, Haughton and Topi, 2007).

Several studies have provided that there existed a direct relationship between satisfaction and loyalty. Ehigie (2006) suggested that there was a significant positive relationship between customer satisfaction and customer loyalty. Moreover, it has been found that one factor which also have a significant positive effect on customer loyalty was customer satisfaction (Soderlund,1998). Satisfaction has been shown to have impact on customer loyalty in past studies (Bloemer, 1998 and Hallowell, 1996).

2.4 Perception values

Customer perceived-value was defined as the cognizance about quality, social psychology, benefit and money (Bishop,1984; Velimirović, et al., 2011). According to Woodruff and Gardial (1996), a customer‟s perceived perception of what they want to happen in a specific use situation, with the help of a product and service ordering, in order to complete a purpose or goal. Perception value was defined as "what you [consumer] get for what you pay" by Sirohi, McLaughlin and Wittink (1998). In addition, Monroe (1990) stared that Perception value is a tradeoff between the quality or benefit they perceive in the product relative to the sacrifice the perceive by paying the price.

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Moreover, "a consumer‟s anticipation about the outcome of purchasing a product or service based on future benefits and sacrifices" was known as perception value (Spreng, Dixon and Olshavsky (1993)).

Previous studies have proved to the positive relationship among service quality and perceived value (Bauer et al., 2006) which has been shown to cause loyalty among the customers. Chang and Wildt (1994) stated that value can assist loyalty. Wu (2007) mentioned that the perception of consumers will increase or reduce brand loyalty. There was also positive relationship found between consumer perceived value and customer loyalty (Yang & Peterson, 2004; Sirdeshmukh ,2002).

2.5 Service quality

Santos (2003) defined service quality as the customers‟ overall judgment of the fineness in offering the service. Service quality has been referred as the extent to which a service meets customers‟ needs or expectations (Lewis & Mitchell, 1990; Dotchin & Oakland, 1994, Wisniewski and Donnelly (1996)). Cronin (2000) found correlation among service quality and customer satisfaction ,which in return provides customer loyalty (Lai et al., 2009). Zeithaml et al. (1996) stated that overall service quality is positively related to a willingness to pay more and to loyalty. Customers who received superior service quality from their bank will prefer to maintain a loyal relationship with it (Bei and Chiao, 2006). Service quality has been proved as the driver of loyalty (Lai et al., 2009).

According to Gronroos (1982), Lewis and Booms (1983), Pasuraman et al (1985) ,one service quality measurement model which is the most often used to measuring service quality has been to compare customer expectation before service encounter and perception of the actual service delivered is Servqual model. SERVQUAL has proven to be a paticular model that has been used in various service organizations and industries to measure service quality including banks ( Alexander , 1994; Cowling and Newman,

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1996; Levesque and Dougall, 1996; Caruana, 2000; Caruana, 2002; Sureshchandar, 2002; Paswan , 2004; Seth, 2005; Lymperopoulos, 2006) It was developed by Parasuraman et al (1985) and it has five factors as follows:

1. Reliability: The ability to provide the promised service dependably and accurately. 2. Responsiveness: The willingness to help customers and provide prompt service. 3. Assurance: the knowledge and courtesy of employees and their ability to raise trust ,confidence and effective communication with the customer.

4. Empathy: The supply of caring, individualized attention the organization provides its customers.

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9 2.6/Review of previous study

Tor Wallin Andreasse and Bodil Lindestad (1998)'s model

Figure 1. Tor Wallin Andreasse and Bodil Lindestad (1998)'s model

Based on theory from consumer behavior, Tor Wallin Andreassen and Bodil Lindestad conducted this research to test corporate image and customer satisfaction as two factors to customer loyalty.

The finding of the papers stated that corporate image and customer satisfaction were not two dividable way to customer loyalty. Corporate image affected customer loyalty directly but customer satisfaction did not. This finding was relevant with high and low service expertise. This information which was the relative strength of the two ways was important in improving customer loyalty.

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10 Serkan Aydin, Gökhan Özer, (2005)'s model

Figure 2. Serkan Aydin, Gökhan Özer, (2005)'s model

Corporate image, perceived service quality, trust and customer switching costs were the major factors of customer loyalty, and loyal customers might buy more and had a positive word-of-mouth effect. At the same time, the cost of selling to new customers was much higher than the cost of selling to existing customers. But many companies were still losing customers at a formidable rate. In this context, Serkan Aydin, Gökhan Özer, (2005) conducted this paper with the main aim was to examine the relationships between these factors and customer loyalty.

At the end, the findings showed that perceived service quality was a necessary but not sufficient condition for customer loyalty.

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Luc Honore Petnji Yaya, Frederic Marimon, Marti Casadesus, (2011)'s model

Figure 3. Luc Honore Petnji Yaya, Frederic Marimon, Marti Casadesus, (2011)'s model

This research investigated to measure e-service quality and the factors which affected customer satisfaction and loyalty in online banking service.

The finding of the paper was that all of those factors had a positive impact on customer satisfaction and significantly affect e-loyalty. Moreover, the mediating role of satisfaction on the relationship between customer loyalty and service quality was approved.

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12 General conceptual model on marketing

This model was conducted by the Marketing group of IU- staff in 2012.

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13 2.7/Conceptual model and hypothesis

Base on the different framework introduced above, the most appropriate model for this thesis topic was General conceptual model on marketing .However, instead of testing on all of those factors, this research aimed at focusing on the Customer loyalty. So that, the model of this thesis included the significant factors that might have positive impact on Customer loyalty in Vietinbank branch 4 which consisted of Servqual model's factors (tangibles ,reliability ,responsiveness ,assurance and empathy) ,Satisfaction, Perception value and Brand awareness.

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14 The model had the following Hypotheses:

H1: There is a positive impact of "Customer Satisfaction" on "Customer Loyalty".

H2: There is a positive impact of "Perception Values" on "Customer Loyalty".

H3: There is a positive impact of "Brand awareness" on "Customer Loyalty".

H4: There is a positive indirect impact of "Tangibles" on "Customer Loyalty".

H5: There is a positive indirect impact of "Reliability" on "Customer Loyalty".

H6: There is a positive indirect impact of "Responsiveness" on "Customer Loyalty".

H7: There is a positive indirect impact of "Assurance" on "Customer Loyalty".

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Problem Statement

Research Objective

CHAPTER III

METHODOLOGY

Figure 6. Research framework

1. Review the theory

2. Introduce Vietinbank brach 4

3. Identify the Consumer Loyalty

4.Give suggestion and recommendation

Method: collect secondary data, analyze and identify model

Secondary data and company record

Method: Use SPSS software -Descriptive statistic

-Statistical test -Regresstion

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16 3.1/ Study design

1. Nature of study

Vietinbank might get some issues about customer loyalty but up to now there was still not any study in this aspect to give a deeper view in this. That brought the exploratory to be conducted in this case to define the problems. Based on qualitative and quantitative approach, this study would try to find out and evaluate both situation and solution for customer loyalty of Vietinbank. Moreover, it could bring to a platform in improving this aspect in the future.

2. Method of data collection

This study used both communication and monitoring study to collect primary data. The communication would be the first step in the process of collecting data. It included interview and survey. The interview step was for the managers of Vietinbank branch 4. This was conducted to get some unbiased ideas in order to support and contribute effectively to the survey. The result of the interview would be used to improve the written questionnaire. After that, the pilot study test would be conducted with the questionnaire draft based on 9 factors in the conceptual model and in depth interview in order to recheck and improve questionnaire before. 20 respondents would be chosen to answer the questionnaire. Finally, the main study which was the final questionnaire was developed and completed after being checked many times before.

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17 3.2/ Target sample

This study collected data at Vietinbank branch 4th in Ho Chi Minh city. There would be two processes to be conducted: interview sampling process and survey process.

1. Interviewing process

As I mentioned before, the manager of Vietinbank branch 4th would be interviewed.

2. Survey process

The survey would be based on convenience sampling which gave the information from the most available respondents. The questionnaire would be distributed to the customers who were available during the opening hours of Vietinbank.

3.3/ Sample size

The target population brought to a decision of choosing 200 customers for sampling. Because of the limitation of time and material so this research could not get a lot customers. But 200 customers was still a reliable number to make sure the reliability for this research.

3.4/Questionnaire design

The final questionnaire for surveying was conducted which is based on the interview and pilot study. The design of questionnaire was divided into 6 parts, including personal information and the factors of the conceptual model: Servqual model's factors, Customer satisfaction, Brand awareness, Perception value, Customer loyalty.

All the questions ,except personal information, were measured on Five-point Likert scale which had number 1 is strongly disagree, number 2 is disagree, number 3 is neither disagree or agree, number 4 is agree and number 5 is strongly agree.

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Table 1. Summary of adjusted measurement scale

Construct Variables Scale

Tangibles

TAN1 1.Vietinbank branch 4's decoration is simple and friendly.

5-point Likert scale

TAN2 2.Vietinbank branch 4's staffs with nice uniform and appear neat.

TAN3 3.Vietinbank branch 4's staffs can speak English and Vietnamese t communicate with customers.

TAN4 4.Logo and signboard outside Vietinbank branch 4 are impressive, easy to recognize.

TAN5 5.Vietinbank branch 4 has a convenient location.

Reliabilities

REL1 6.Vietinbank branch 4 maintains service quality standard at all the time.

REL2 7.Vietinbank branch 4's staffs have full knowledge of service's form to response to customer if asked.

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REL3 8.Vietinbank branch 4 commits to provide high quality with well origin.

REL4 9.Vietinbank branch 4 always provides service right at the first time.

REL5 10.Vietinbank branch 4 always

enthusiastically record mistakes.

Responsiveness

RES1 11.Vietinbank branch 4 always performs service promptly.

RES2 12.Vietinbank branch 4's staffs are always willing to help customers.

RES3 13.Vietinbank branch 4's staffs are always ready to respond to customers' request.

RES4 14.Vietinbank branch 4 has effective communication channels with customers.

Assurance

ASSU1 15.Vietinbank branch 4's staffs instill the confidence in customers.

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20 Vietinbank branch 4's services.

ASSU3 17.Vietinbank branch 4's staffs are consistently courteous.

Empathy

EMPA1 18.Vietinbank branch 4 cares for customer on special day (Birthday, Women's day, Christmas, Tet holiday).

EMPA2 19.Vietinbank branch 4's staffs always interested in the feeling of customers.

EMPA3 20.Vietinbank branch 4's staffs always listen to customers' comments sincerely .

EMPA4 21.Vietinbank branch 4's staffs have no discrimination among customers (first come, first serve).

Customer Satisfaction

SAS1 22.In general, i completely feel satisfied with service quality of Vietinbank branch 4.

SAS2 23.I will continue using services of Vietinbank branch 4 later on.

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21 close friends, family.

Perception Value

VAL1 25.Vietinbank branch 4's services have consistent quality.

VAL2 26.It is reasonably priced. 5-point Likert scale

VAL3 27.I enjoy using Vietinbank branch 4's services.

VAL4 28.Vietinbank branch 4's services would make me want to use them.

Brand Awareness

BRA1 29.Vietinbank branch 4 comes to my mind when I think of bank brands.

BRA2 30Vietinbank branch 4 is thought to be well known.

BRA3 31.Vietinbank branch 4 can be recognized among competitors.

Customer Loyalty

LOY1 32.I consider myself loyal to Vietinbank branch 4.

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LOY2 33.I use Vietinbank branch 4 whenever i can.

LOY3 34.I really like to talk about Vietinbank branch 4 to others.

LOY4 35.Vietinbank branch 4 is the number one brand I would prefer to use.

3.5/Data collection

a/ Primary data

The primary data was collected by following steps: interview, pilot study and main study. After all of those steps, the data from the opinions and evaluations of Vietinbank's manager and its customers would be used to analyze the factors which affect customer loyalty in Vietinbank branch 4.

b/ Secondary data

Internal source: the data was collected from the Vietinbank's website.

External source: the data was collected from the newspapers, magazines, some research studies or from the competitors which was related to the service quality, customer loyalty in Vietinbank.

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23 3.6/Data analysis

The data from the result of questionnaire was analyzed by SPSS software (Statistical Package for Social Sciences). The independent variables were evaluated by descriptive statistic.

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24 Chapter IV

DATA ANALYSIS AND RESULTS

4.1 Sample Demographics

The research was conducted at Vietinbank branch 4 in Ho Chi Minh city. The sampling method were non-probability and convenience with 200 samples. 233 questionnaires were distributed directly to the respondents.

33 questionnaires were rejected because they were not full of information. 200 full-information questionnaires were used to encode and test with the SPSS software.

Figure 7. Proportion of respondents' gender

96 104

Gender

Male Female

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There were 200 respondents which consisted of 96 males (48%) and 104 females (52%).

Figure 8. Proportion of respondents' age

Among 200 respondents, there were 26 customers(13%) in the age under 25 years old , 63(31.5%) from 26 to 35, 85 (42.5%) from 36 to 45 and the remaining were 26 respondents (13%) over 45 years old. These results might show that customers who were in the age from 26 to 45 often use Vietinbank branch 4's services. Moreover , the result were distributed to all of the ages so it might bring the results of the testing to be reliable.

26 63 85 26

Age

Under 25 From 26 to 35 From 36 to 45 Over 45

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26 4.2 Descriptive Analysis

The Descriptive statistics were conducted to explain the basic features of the data in the research. There were two basic terms what were analyzed consisting of "mean" and "standard deviation" . Mean described the central trend of the data. Standard deviation indicated the dispersion level of the data.

4.2.1 Tangible

There were 5 items which were used to measure "Tangible": TAN1: "Vietinbank branch 4's decoration is simple and friendly."

TAN2: "Vietinbank branch 4's staffs with nice uniform and appear neat."

TAN3: "Vietinbank branch 4's staffs can speak English and Vietnamese t communicate with customers."

TAN4: "Logo and signboard outside Vietinbank branch 4 are impressive, easy to recognize."

TAN5: "Vietinbank branch 4 has a convenient location."

Table 2 Descriptive statistics of Tangible

Descriptive Statistics

N Minimum Maximum Mean

Std. Deviation

TANGIBLE(TAN1) 200 1 5 3.77 .742

TANGIBLE(TAN2) 200 1 5 3.60 .777

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TANGIBLE(TAN4) 200 1 5 3.78 .840

TANGIBLE(TAN5) 200 1 5 3.73 .707

Valid N (list wise) 200

Tangible was the dimension showing the quality of physical material base, equipment and appearance of staff which consumers think they can try the service. The result of collected data showed that all of the means were above 3.6 (average mean =3.732) . " Vietinbank branch 4's staffs with nice uniform and appear neat " is the one that customers feel least secure, 3.6. They could previse that uniform and appear neat of Vietinbank branch 4's staffs are not nice at all. The " Vietinbank branch 4's staffs can speak English and Vietnamese to communicate with customers" and " Logo and signboard outside Vietinbank branch 4 are impressive, easy to recognize" have the highest mean, 3.78. It might show that most of the respondents agreed that Vietinbank branch 4's staffs had a good communication skill and the logo and signboard outside made them easy to see. All of standard deviation of " Tangible" were quite high (>0.7). The highest was " Logo and signboard outside Vietinbank branch 4 are impressive, easy to recognize" , 0.84. It could be explained as the standard about uniform of many customers are different from each others. So , it led to high differences in the answers. However, the significant of the means are accepted following the rule of 2 (Mean/Standard Deviation >2)

4.2.2 Reliability

There were 5 items which were employed to analyze "Reliabilities" :

REL1: "Vietinbank branch 4 maintains service quality standard at all the time."

REL2: "Vietinbank branch 4's staffs have full knowledge of service's form to response to customer if asked."

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REL3: "Vietinbank branch 4 commits to provide high quality with well origin." REL4: "Vietinbank branch 4 always provides service right at the first time." REL5: "Vietinbank branch 4 always enthusiastically record mistakes."

Table 3. Descriptive statistics of Reliabilities Descriptive Statistics

N Minimum Maximum Mean Std. Deviation RELIABILITIES(REL1) 200 1 5 3.64 .708 RELIABILITIES(REL2) 200 1 5 3.67 .804 RELIABILITIES(REL3) 200 1 5 3.61 .794 RELIABILITIES(REL4) 200 1 5 3.66 .753 RELIABILITIES(REL5) 200 1 5 3.62 .877

Reliability factors showed the ability to provided the promised service dependably and accurately of the bank which made customers believe that Vietinbank branch 4's service is reliable to use. As the results, all of the mean values were higher than 3.6 (average mean =3.64). It would mention that the respondents accepted Vietinbank branch 4's service were dependable and accurate. For example, " Vietinbank branch 4's staffs have full knowledge of service's form to response to customer if asked" had the highest mean of 3.67 which showed that customers believed in the knowledge of staffs to answer all of the questions.

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Some customers got little problems about the services of Vietinbank branch 4 so that they made the answers of this dimension with the low rate. As a result, the standard deviation were high, especially "Vietinbank branch 4 always enthusiastically record mistakes", .877.

4.2.3 Responsiveness

There were 4 items which were used to measure "Responsiveness": RES1: "Vietinbank branch 4 always performs service promptly."

RES2: "Vietinbank branch 4's staffs are always willing to help customers."

RES3: "Vietinbank branch 4's staffs are always ready to respond to customers' request." RES4: "Vietinbank branch 4 has effective communication channels with customers."

Table 4. Descriptive statistics of Responsiveness Descriptive Statistics

N Minimum Maximum Mean Std. Deviation RESPONSIVENESS(RES1) 200 1 5 3.58 .792 RESPONSIVENESS(RES2) 200 1 5 3.43 .746 RESPONSIVENESS(RES3) 200 1 5 3.45 .769 RESPONSIVENESS(RES4) 200 1 5 3.55 .794

Responsiveness was the dimension which showed the willingness of Vietinbank branch 4's staffs to help customers and provide prompt service. According to the result table, the smallest mean was 3.43 ("Vietinbank branch 4's staffs are always willing to help

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customers"), the highest one was 3.58 (Vietinbank branch 4 always performs service promptly) and the average mean is equal to 3.5025. As we can see, all of them were above 3 which means that customers almost agreed to the elements.

There were some customers who used banking service at many different banks and Vietinbank branch 4 was just one of them. So their answers were not confidence as the ones who only used Vietinbank branch 4's services. That was the reason why the standard deviation was quite high, nearly 0.8.

4.2.4 Assurance

There were 3 items which were employed to determine "Assurance": ASSU1: "Vietinbank branch 4's staffs instill the confidence in customers." ASSU2: "Customers feel safe when using Vietinbank branch 4's services" ASSU3: "Vietinbank branch 4's staffs are consistently courteous."

Table 5. Descriptive statistics of Assurance Descriptive Statistics

Std. Deviation ASSURANCE(ASSU1) 200 1 5 3.71 .753 ASSURANCE(ASSU2) 200 1 5 3.77 .721 ASSURANCE(ASSU3) 200 1 5 3.67 .732 Valid N (listwise) 200

The results of "Assurance" showed the level that customers evaluated the knowledge and courtesy of Vietinbank branch 4 's staffs and their ability to raise trust ,confidence and effective communication with them. The means were quite high , all of them were above

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3.5 (average mean =3.72). That brought to the high acceptance from the customers about the high level of assurance of Vietinbank branch 4. Especially " Customers feel safe when using Vietinbank branch 4's services" had the highest mean, 3.77. It meant that customers had no worries and scares when they thought about using Vietinbank brach 4's services. So they rated the answers with high points (almost 4).

The standard deviation of "Assurance" was lower than the above ones. That led to the explanation that respondents' answers had quite low level of dispersion, under 0.75. This also meant that customers might have the same thinking when they thought about "Assurance" of Vietinbank branch 4.

4.2.5 Empathy

There were 4 items which were used to measure "Empathy" :

EMPA1: "Vietinbank branch 4 cares for customer on special day (Birthday, Women's day, Christmas, Tet holiday)."

EMPA2: "Vietinbank branch 4's staffs always interested in the feeling of customers." EMPA3: "Vietinbank branch 4's staffs always listen to customers' comments sincerely ." EMPA4: "Vietinbank branch 4's staffs have no discrimination among customers (first come, first serve)."

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Table 6. Descriptive statistics of Empathy Descriptive Statistics

Std. Deviation EMPATHY(EMPA1) 200 1 5 3.86 .750 EMPATHY(EMPA2) 200 1 5 3.88 .767 EMPATHY(EMPA3) 200 1 5 3.75 .685 EMPATHY(EMPA4) 200 1 5 3.73 .747 Valid N (listwise) 200

The "Empathy" dimension measures the supply of caring, individualized attention the organization provides its customers. According to the result table, all of the means were higher than 0.37 (average mean= 3.805). As the reasons, customers were quite sure about the situation of caring and individualized attention of Vietinbank branch 4 to them and they also accepted that. For more detail, " Vietinbank branch 4's staffs always interested in the feeling of customers" had the highest mean, 3.88. This result showed that all of respondents nearly agreed with the existence of interests of Vietinbank branch 4's staff to their feeling.

With the standard deviation were not high and the lowest one was " Vietinbank branch 4's staffs always listen to customers' comments sincerely ", 0.685. This result indicated that the dispersion of customers respond was quite low. It also meant that respondents could clearly realize the sharing of their feeling by the staffs of Vietinbank branch 4.

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33 4.2.6 Customer Satisfaction

There were 3 items which were employed to determine "Customer Satisfaction" :

SAS1: "In general, i completely feel satisfied with service quality of Vietinbank branch 4."

SAS2: "I will continue using services of Vietinbank branch 4 later on." SAS3: "I will introduce Vietinbank branch 4 to close friends, family."

Table 7. Descriptive statistics of Satisfaction Descriptive Statistics

Std. Deviation SATISFACTION(SAS1) 200 1 5 3.65 .825 SATISFACTION(SAS2) 200 1 5 3.63 .835 SATISFACTION(SAS3) 200 1 5 3.67 .789 Valid N (listwise) 200

The results in "Customer Satisfaction " show the feeling of pleasure and expectation fulfillment's level of customers. So that, the higher the points of the means are given, the more satisfied the customer feel. Three of the items got the means over than 3.6, larger than 3.5 but under 4( average mean =3.65). Some customers were still neutral. They could not decide between " agree" and "neither" when rating the statements. Furthermore, the standard deviation were high, from 7.89 to 8.35. The fluctuation of the answers was quite high so that it showed the unsure in customers' decisions.

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34 4.2.7 Perception value

There were 4 items which were used to measure "Perception value": VAL1: "Vietinbank branch 4's services have consistent quality." VAL2: "It is reasonably priced."

VAL3: "I enjoy using Vietinbank branch 4's services."

VAL4: "Vietinbank branch 4's services would make me want to use them." Table 8. Descriptive statistics of Perception value

Std. Deviation VALUE(VAL1) 200 1 5 3.76 .680 VALUE(VAL2) 200 1 5 3.80 .816 VALUE(VAL3) 200 1 5 3.76 .718 VALUE(VAL4) 200 1 5 3.83 .683 Valid N (listwise) 200

Perception value is the judgment that show customer's perceived perception of what they want to happen in a specific situation, with the help of a product and service ordering, in order to complete a purpose or goal. All of four items had good means, over 3.7 (average mean =3.79). Especially, " It is reasonably priced", 3.8, and " Vietinbank branch 4's services would make me want to use them", 3.83. Both of them had high mean which indicated that respondents tend to agree that the services had good quality and price. Moreover, the dispersion of respondents' answers was quite low so that the standard deviation fluctuated from 6.8 to 8.16.

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35 4.2.8 Brand awareness

There were 3 items which were employed to analyze "Brand awareness": BRA1: Vietinbank branch 4 comes to my mind when I think of bank brands. BRA2: Vietinbank branch 4 is thought to be well known.

BRA3: Vietinbank branch 4 can be recognized among competitors. Table 9. Descriptive statistics of Brand awareness Descriptive Statistics

Std. Deviation BRAND(BRA1) 200 1 5 3.70 .752 BRAND(BRA2) 200 1 5 3.73 .748 BRAND(BRA3) 200 1 5 3.64 .789 Valid N (listwise) 200

Brand awareness is the dimension which test the ability of customers to recall and recognize the branch as reflected by their ability to identify the brand under different conditions to certain relations in memory. With the quite high results in means of three items in " Brand awareness" dimension, nearly 3.7 (average mean =3.69), so that customers rised acceptance in choosing Vietinbank branch 4 when they were in the situation of selecting a branch to use. In another aspect, " Vietinbank branch 4 is thought to be well known" had a quite low standard deviation, 0.748, the respondents gave almost familiar direction answers . Moreover, " Vietinbank branch 4 can be recognized among competitors", 0.789, some customers thought that there was a lot of branches of bank nowadays, so they were not confident in rating the statements.

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36 4.2.9 Customer loyalty

There were 4 items that were used to measure "Customer loyalty": LOY1: "I consider myself loyal to Vietinbank branch 4."

LOY2: "I use Vietinbank branch 4 whenever I can."

LOY3: "I really like to talk about Vietinbank branch 4 to others."

LOY4: "Vietinbank branch 4 is the number one brand I would prefer to use." Table 10. Descriptive statistics of Customer loyalty

N Minimum Maximum Mean Std. Deviation

LOYALTY(LOY1) 200 1 5 3.74 .696

LOYALTY(LOY2) 200 1 5 3.76 .824

LOYALTY(LOY3) 200 1 5 3.74 .712

LOYALTY(LOY4) 200 1 5 3.75 .730

Customer loyalty dimension, the dependent factor of my study, indicates the behavioral reaction based on prejudice as the function of psychological processes by the decision makers and the commitment in purchasing product or service in the future. As the previous ones, the means of this dimension were also quite high, above 3.7 (average mean =3.75). Most of respondents scored the statement with 4 and some of them rate with 3 which is neutral. So that, customers were quite confident to agreed that they felt loyalty to Vietinbank branch 4. At the same time, the fluctuation of the answers was not much. " I consider myself loyal to Vietinbank branch 4" item gave the standard deviation

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of 0.696. It meant that many customers did not have much differences in rating the statements.

After all, for all factors researched , the results of means was quite high averagely and standard deviations were above 6.5 . That brought to the conclusion that customers almost agreed with all of the statements but some respondents used many branches of bank so they were not confident when rating the statement, that led to the quite high of standard deviation.

4.3 Reliability testing

Reliability testing is a tool which judge the internal consistency in the respondents' answers. Moreover, it is employed to evaluate if all of the items measure the same thing. George and Mallery (2003) gave the following rules :

Cronbach's Alpha < 0.5 : Unacceptable 0.5 < Cronbach's Alpha < 0.6 :Poor

0.6 < Cronbach's Alpha < 0.7 : Acceptable 0.7 < Cronbach's Alpha < 0.8 : Good 0.8 < Cronbach's Alpha : Excellent

In the case of exploratory, if Cronbach's Alpha had the value which is greater than 0.6 we can accept it.

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38 4.3.1 Tangible

Table 11. Reliability test of Tangible

Reliability Statistics Cronbach's Alpha N of Items .866 5 Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted TANGIBLE(TAN1) 14.88 6.156 .777 .817 TANGIBLE(TAN2) 15.05 6.675 .569 .868 TANGIBLE(TAN3) 14.87 6.090 .773 .817 TANGIBLE(TAN4) 14.87 6.465 .561 .873 TANGIBLE(TAN5) 14.92 6.245 .799 .813

The Cronbach's Alpha of "Tangible" dimension was very high, 0.866. This showd that the items were consistent internally and established well. All of the Item- total correlation was greater than 0.6 but " Vietinbank branch 4's staffs with nice uniform and appear neat" and " Logo and signboard outside Vietinbank branch 4 are impressive, easy to recognize" just had values nearly 0.6. But at all, these two items were very important in the process of identifying the "Tangible" and the Cronbach's Alpha of this dimension was also very high so they should not be deleted from the table.

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39 4.3.2 Reliability

Table 12. Reliability test of Reliability

Reliability Statistics Cronbach's Alpha N of Items .854 5 Item-Total Statistics Scale Mean if Item Delete d Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted RELIABILITIES(REL1) 14.56 7.413 .500 .863 RELIABILITIES(REL2) 14.54 6.481 .664 .826 RELIABILITIES(REL3) 14.59 6.293 .733 .807 RELIABILITIES(REL4) 14.54 6.521 .716 .813 RELIABILITIES(REL5) 14.58 5.932 .735 .806

This dimension also had high Cronbach's Alpha value (0.854). But in the case of " Vietinbank branch 4 maintains service quality standard at all the time" was eliminated , the value of Cronbach's Alpha of this dimension would increase from 0.854 to 0.863. So there was a need to deleted this items to get a higher Cronbch's Alpha.

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Table 13. New Reliability test of Reliability

Reliability Statistics Cronbach's Alpha N of Items .863 4 Item-Total Statistics Scale Mean if Item Delete d Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted RELIABILITIES(REL2) 10.90 4.597 .630 .858 RELIABILITIES(REL3) 10.94 4.414 .710 .826 RELIABILITIES(REL4) 10.90 4.523 .725 .822 RELIABILITIES(REL5) 10.94 3.906 .790 .792

As we can see, after we deleted the item " Vietinbank branch 4 maintains service quality standard at all the time" the Cronbach's Alpha was increased to 0.863 and all of the Item-total Correlation were greater than 0.6 which indicated that the remaining factors were designed well.

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41 4.3.3 Responsiveness

Table 14. Reliability test of Responsiveness

Reliability Statistics Cronbach's Alpha N of Items .887 4 Item-Total Statistics Scale Mean if Item Delete d Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted RESPONSIVENESS(RES1) 10.43 3.895 .853 .815 RESPONSIVENESS(RES2) 10.59 4.425 .702 .873 RESPONSIVENESS(RES3) 10.56 4.469 .654 .891 RESPONSIVENESS(RES4) 10.46 3.988 .809 .832

The "Responsiveness" dimension got a excellent result in Cronbach's Alpha value which was 0.887. If the item " Vietinbank branch 4's staffs are always ready to respond to customers' request" was deleted, the Cronbach's Alpha was not change much, just from 0.887 to 0.891. So, all of four items could be kept.

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42 4.3.4 Assurance

Table 15. Reliability test of Assurance Reliability Statistics Cronbach's Alpha N of Items .849 3 Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted ASSURANCE(ASSU1) 7.43 1.654 .783 .724 ASSURANCE(ASSU2) 7.38 1.795 .736 .772 ASSURANCE(ASSU3) 7.48 1.909 .639 .862

The result after running the Reliability testing of "Assurance" was also a good one, 0.849 and all of three Item-total Correlation were higher than 0.6. It proved that the factors were designed well and consistent. In the case of item " Vietinbank branch 4's staffs are consistently courteous" was eliminated, the value of Cronbach's Alpha was not changed so much and this item was one the most important one in the process of evaluate " Assurance". So that all of three items should be retained.

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43 4.3.5 Empathy

Table 16. Reliability test of Empathy Reliability Statistics Cronbach's Alpha N of Items .865 4 Item-Total Statistics Scale Mean if Item Delete d Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted EMPATHY(EMPA1) 11.37 3.379 .820 .783 EMPATHY(EMPA2) 11.35 3.363 .801 .790 EMPATHY(EMPA3) 11.48 4.019 .624 .862 EMPATHY(EMPA4) 11.49 3.829 .622 .865

With the value of 0.865 of Cronbach's Alpha, "Emphathy" has been proved that it had a well-designed and all of items were consistent together. There was no item should be deleted because of the decrease in Cronbach's Alpha value.

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44 4.3.6 Customer satisfaction

Table 17. Reliability test of Satisfaction

Reliability Statistics Cronbach's Alpha N of Items .814 3 Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted SATISFACTION(SAS1) 7.31 2.102 .665 .745 SATISFACTION(SAS2) 7.33 2.140 .630 .782 SATISFACTION(SAS3) 7.28 2.132 .703 .708

"Satisfaction" dimension had good Cronbach's Alpha value (0.814) and no items had the Item-Total Correlation under 0.6. All of the items would be kept for further test because any elimination will lead to a downward of Cronbach's Alpha value.

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45 4.3.7 Perception value

Table 18. Reliability test of Perception value

Reliability Statistics Cronbach's Alpha N of Items .821 4 Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted VALUE(VAL1) 11.38 3.352 .674 .763 VALUE(VAL2) 11.35 2.882 .701 .749 VALUE(VAL3) 11.39 3.122 .731 .734 VALUE(VAL4) 11.32 3.736 .488 .840

"Value" dimension received a good Cronbach's Alpha value at 0.821. But Cronbach's Alpha If Item Deleted of " Vietinbank branch 4's services would make me want to use them" was 0.84 and its Item-Total Correlation was also under 0.6 (0.488). So it was significant to eliminate this item.

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Table 19. New Reliability test of Perception value

Reliability Statistics Cronbach's Alpha N of Items .840 3

When the item " Vietinbank branch 4's services would make me want to use them" was deleted the Cronbach's Alpha increased to 0.84 which also meant this dimension was more reliable and effective.

4.3.8 Brand awareness

Table 20. Reliability test of Brand awareness

Reliability Statistics Cronbach's Alpha N of Items .818 3 Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted BRAND(BRA1) 7.38 1.884 .677 .745

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BRAND(BRA2) 7.34 1.904 .669 .753

BRAND(BRA3) 7.43 1.803 .670 .753

This group of items in "Brand" dimension got a very high value of Cronbach's Alpha, 0.818. Moreover, with all of the item-Total Correlation were above 0.6, there was no items would be eliminated and the structure between factors was strong and consistent.

4.3.9 Customer loyalty

Table 21. Reliability test of Customer loyalty

Reliability Statistics Cronbach's Alpha N of Items .810 4 Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted LOYALTY(LOY1) 11.24 3.558 .598 .775 LOYALTY(LOY2) 11.22 2.987 .684 .734 LOYALTY(LOY3) 11.24 3.319 .688 .734 LOYALTY(LOY4) 11.23 3.565 .550 .797

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The last dimension in the reliability testing was "Loyalty" which was also the dependent factors of this study. It got a quite high Cronbach's Alpha, 0.81. About the Item-Total Correlation, there were " I consider myself loyal to Vietinbank branch 4" and " Vietinbank branch 4 is the number one brand I would prefer to use" got the value under 0.6. But if the two items were deleted, the Cronbach's Alpha would receive a decrease. So that all of items were kept.

4.4 Exploratory Factor Analysis (EFA)

Exploratory Factor Analysis (EFA) is a tool to bring inter-correlated variables together in the case of the study which get the questionnaire consisting of many questions and these questions can make the study more complicated. There are some criteria which need to be passed :

Kaiser-Meyer-Olkin (KMO) should be from 0.6 to 1.0 to be a good analysis. At the same time, the Significant of Bartlett's test of Sphericity also should be under 0.05.

Total Variance Explained need to be greater than 50%. Eigen- value of each factors greater than 1 is accepted.

4.4.1 Independent variable

This part included 5 factors : "TANGIBLE", "RELIABILITIES", "RESPONSIVENESS", "ASSURANCE" and "EMPATHY".

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Table 22. Summary of EFA test of Tangible, Reliability, Responsiveness, Assurance and Empathy

Total Variance Explained

Componen t

Initial Eigenvalues

Extraction Sums of Squared Loadings

Rotation Sums of Squared Loadings Total % of Variance Cumulativ e % Total % of Variance Cumulativ e % Total % of Varian ce Cumul ative % 1 4.714 23.570 23.570 4.714 23.570 23.570 3.399 16.994 16.994 2 2.969 14.847 38.417 2.969 14.847 38.417 3.040 15.198 32.191 3 2.834 14.171 52.588 2.834 14.171 52.588 2.880 14.399 46.591 4 2.325 11.625 64.213 2.325 11.625 64.213 2.859 14.294 60.885 5 1.670 8.349 72.562 1.670 8.349 72.562 2.335 11.677 72.562 6 .677 3.383 75.945 7 .634 3.169 79.114 8 .587 2.936 82.050 9 .498 2.490 84.540 10 .489 2.446 86.985 11 .452 2.260 89.245 12 .415 2.074 91.320 13 .351 1.754 93.073 14 .345 1.724 94.797 15 .257 1.283 96.080 16 .220 1.102 97.183 17 .190 .952 98.135 18 .171 .854 98.989

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19 .121 .605 99.593

20 .081 .407 100.000

Extraction Method: Principal Component Analysis.

Rotated Component Matrixa

Component 1 2 3 4 5 TANGIBLE(TAN1) .877 TANGIBLE(TAN2) .691 TANGIBLE(TAN3) .868 TANGIBLE(TAN4) .665 TANGIBLE(TAN5) .891 RELIABILITIES(REL2) .777 RELIABILITIES(REL3) .847 RELIABILITIES(REL4) .851 RELIABILITIES(REL5) .892 RESPONSIVENESS(RES1) .921 RESPONSIVENESS(RES2) .802 RESPONSIVENESS(RES3) .775 RESPONSIVENESS(RES4) .894 ASSURANCE(ASSU1) .861 ASSURANCE(ASSU2) .844 ASSURANCE(ASSU3) .816

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EMPATHY(EMPA1) .891

EMPATHY(EMPA2) .883

EMPATHY(EMPA3) .781

EMPATHY(EMPA4) .792

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 5 iterations.

Table 23. KMO test and Bartlett's test of Tangible, Reliability, Responsiveness, Assurance and Empathy

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .780 Bartlett's Test of Sphericity Approx. Chi-Square 2386.204 df 190 Sig. .000

The EFA had the result of KMO Measure of Sampling Adequacy was 0.78 (greater than 0.6). Bartlett's Test of Sphericity had Sig.=0 (<0.05) which showed that the variables were interrelated in the population.

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According to the table , 20 items were divided into 5 groups. The first component consisted of 5 items "TANGIBLE(TAN1)", "TANGIBLE(TAN2)", "TANGIBLE(TAN3)", "TANGIBLE(TAN4)" and "TANGIBLE(TAN5)". This component is labeled as " Tangible". The second group is included of 4 items " RESPONSIVENESS(RES1)", " RESPONSIVENESS(RES2)", " RESPONSIVENESS(RES3)" and " RESPONSIVENESS(RES4)" . This second group is named as " Responsiveness". The third component has 4 items " EMPATHY(EMPA1)" ," EMPATHY(EMPA2)", " EMPATHY(EMPA3)" and " EMPATHY(EMPA4)". The third group had the name as " Empathy". The next group's name is " Reliabilities" because it consist of 4 items " RELIABILITIES(REL2)" ," RELIABILITIES(REL3)", " RELIABILITIES(REL4)" and " RELIABILITIES(REL5)". At the end, the last component included 3 items " ASSURANCE(ASSU1)" ," ASSURANCE(ASSU2)" and " ASSURANCE(ASSU3)" and it was named as " Assurance".

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This part consisted of "SATISFACTION", "VALUE" and "BRAND"

Table 24. Summary of EFA test of Satisfaction , Perception value and Brand awarenes

Total Variance Explained

Comp onent

Initial Eigenvalues

Extraction Sums of Squared Loadings

Rotation Sums of Squared Loadings Total % of Variance Cumulativ e % Total % of Variance Cumulative % Total % of Varianc e Cumulative % 1 3.648 40.534 40.534 3.648 40.534 40.534 2.284 25.377 25.377 2 1.684 18.711 59.244 1.684 18.711 59.244 2.257 25.081 50.457 3 1.390 15.448 74.692 1.390 15.448 74.692 2.181 24.235 74.692 4 .505 5.606 80.298 5 .450 5.001 85.300 6 .390 4.331 89.631 7 .382 4.239 93.870 8 .317 3.518 97.388 9 .235 2.612 100.000

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54 Rotated Component Matrixa

Component 1 2 3 SATISFACTION(SAS1) .838 SATISFACTION(SAS2) .833 SATISFACTION(SAS3) .818 VALUE(VAL1) .788 VALUE(VAL2) .895 VALUE(VAL3) .879 BRAND(BRA1) .846 BRAND(BRA2) .821 BRAND(BRA3) .835

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 4 iterations.

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Table 25. KMO test and Bartlett's test of Satisfaction , Perception value and Brand awareness

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .775 Bartlett's Test of Sphericity Approx. Chi-Square 749.639 Df 36 Sig. .000

The above EFA had the value of KMO of 0.775 (>0.6) and the Sig. of Bartlett's Test of Sphericity has the result of 0 (<0.05). There were 9 items which were divided into 3 groups. The 3 items " VALUE(VAL1)", "VALUE(VAL2)" and " VALUE(VAL3)" were in the first group which was labeled " PE". The second group had 3 items " BRAND(BRA1)" ," BRAND(BRA2)" and " BRAND(BRA3)" and it was named as "BR". The last group is labeled "SA" because it consisted of 3 items " SATISFACTION(SAS1)", " SATISFACTION(SAS2)" and " SATISFACTION(SAS3)".

4.4.2 Dependent variable

Table 26. KMO test and Bartlett's test of Customer loyalty KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .780 Bartlett's Test of Sphericity Approx. Chi-Square 264.570 Df 6 Sig. .000

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56 4.5 Regression and Hypothesis testing 4.5.1 H1,H2,H3

Dependent variable was "LO" . Independent variables were "SA", "PE" and "BR". Table 27. Correlation test of H1, H2, H3

Correlations SA PE BR LO SA Pearson Correlation 1 .281** .377** .227** Sig. (2-tailed) .000 .000 .001 N 200 200 200 200 PE Pearson Correlation .281** 1 .297** .737** Sig. (2-tailed) .000 .000 .000 N 200 200 200 200 BR Pearson Correlation .377** .297** 1 .366** Sig. (2-tailed) .000 .000 .000 N 200 200 200 200 LO Pearson Correlation .227** .737** .366** 1 Sig. (2-tailed) .001 .000 .000 N 200 200 200 200

**. Correlation is significant at the 0.01 level (2-tailed).

According to the table above, all of three independent items: Satisfaction(SA),Perception value (PE) and Brand awareness (BR) had the positive relationship with Customer loyalty