Using the structural equation modelling to determine the antecedents of customer satisfaction in commercial banks in Quang Nam province of Vietnam
Main Article Content
Abstract
Improving customer satisfaction is one of key issues that leaders in banks are interested in nowadays. Hence, this study aimed to identify and measure factors affecting customer satisfaction in commercial banks via both qualitative and quantitative approaches. To do so, the questionnaire was designed to officially survey 461 customers transacting at commercial banks in Quang Nam province, Vietnam. The study then used the Structural Equation Modelling (SEM) to test the research proposed model. The results showed that there are four factors affecting customer satisfaction, including: responsiveness, facility, service price, and secrecy. Based on the findings, the research proposed some managerial implications to enhance customer satisfaction. However, the study had some limitations, so more studies with alternative methods should be conducted to confirm the results of this study for better policies.
Article Details
Keywords
Customer satisfaction, Structural Equation Model (SEM), Commercial banks
References
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Amin, M. (2016). Internet banking service quality and its implication on e-customer satisfaction and e-customer loyalty. International journal of bank marketing, 34(3), 280-306.
Anouze, A. (2019). Customer satisfaction and its measurement in Islamic banking sector: a revisit and update. Journal of Islamic Marketing, 10(2), 565-588. Retrieved from https://doi.org/10.1108/JIMA-07-2017-0080.
Belás, J., Chochoľáková, A., & Gabčová, L. (2015). Satisfaction and loyalty of banking customers: a gender approach. Economics and Sociology, 8(1), 176-188.
Belás, J., Korauš, M., Kombo, F., & Korauš, A. (2016). Electronic banking security and customer satisfaction in commercial banks. Journal of security and sustainability issues, 5(3), 411-422.
Bhat, S. A., Darzi, M. A., & Parrey, S. H. (2018). Antecedents of Customer Loyalty in Banking Sector: A Mediational Study. Vikalpa, 43(2), 92-105. doi:https://doi.org/10.1177%2F0256090918774697
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Hjortskov, M. (2019). Citizen expectations and satisfaction over time: Findings from a large sample panel survey of public school parents in Denmark. The American Review of Public Administration, 49(3), 353-371.
Hult, G. T. M., Morgeson, F. V., Morgan, N. A., Mithas, S., & Fornell, C. (2017). Do managers know what their customers think and why? Journal of the Academy of Marketing Science, 45(1), 37-54.
Jalali, M. S., Ferreira, F. A. F., Ferreira, J. J. M., & Meidutė, I. (2016). Integrating metacognitive and psychometric decision-making approaches for bank customer loyalty measurement. International Journal of Information Technology & Decision Making, 15(04), 815-837.
Janahi, M. A., & Al Mubarak, M. M. S. (2017). The impact of customer service quality on customer satisfaction in Islamic banking. Journal of Islamic Marketing, 8(4), 595-604. doi:https://doi.org/10.1108/JIMA-07-2015-0049
Koraus, A., Stefko, R., & Dobrovic, J. (2016). Decision-making satisfaction and behaviour of bank customers: Survey results analysis. Aktual’ni Problemy Ekonomiky (Actual Problems in Economics), 5(186), 291-301.
Larivière, B., Keiningham, T. L., Aksoy, L., Yalçin, A., Morgeson III, F. V., & Mithas, S. (2016). Modeling heterogeneity in the satisfaction, loyalty intention, and shareholder value linkage: a cross-industry analysis at the customer and firm levels. Journal of Marketing Research, 53(1), 91-109.
Ling, G. M., Fern, Y. S., Boon, L. K., & Huat, T. S. (2016a). Understanding customer satisfaction of internet banking: A case study in Malacca. Procedia Economics and Finance, 37, 80-85.
Ling, G. M., Fern, Y. S., Boon, L. K., & Huat, T. S. (2016b). Understanding customer satisfaction of internet banking: A case study in Malacca. Procedia Economics and Finance, 37(4), 80-85.
Lone, F. A., Aldawood, E., & Bhat, U. (2017). Comparative Analysis of Customer Satisfaction towards Islamic and Conventional Banking: An Empirical Study from Saudi Arabia. 7(1), 273-280. doi:https:// ssrn.com/abstract=2918680
Mohan, M. R., John, S. F., Bhati, A., Bansal, A., Ashok, B., Kumar, N., & AN, J. (2016). E-Banking Services and Customer Satisfaction in Dindugal District-An Empirical Study. Journal of Exclusive Management Science, 5(1), 1-5.
Newlin, T., McCall, T., Ottmar, P., Welch, B., & Khairat, S. (2018). Assessing the Satisfaction of Citizens Using Teleconsent in Clinical Research. Studies in health technology and informatics, 247, 685-689.
Ong, K. S., Nguyen, B., & Syed Alwi, S. F. (2017). Consumer-based virtual brand personality (CBVBP), customer satisfaction and brand loyalty in the online banking industry. International journal of bank marketing, 35(3), 370-390.
Pérez, A., & Del Bosque, I. R. (2015). Corporate social responsibility and customer loyalty: exploring the role of identification, satisfaction and type of company. Journal of Services Marketing, 29(1), 15-25.
Rajagopal, K., & Mahajan, V. (2019). Service Quality Gap Analysis in the Indian Banking Sector-“A Customer Perspective Review.”. International Journal of Human Resource Management and Research (IJHRMR), 9(3), 1-8.
Raza, S. A., Jawaid, S. T., & Hassan, A. (2015). Internet banking and customer satisfaction in Pakistan.
Qualitative Research in Financial Markets, 7(1), 24-36.
Saleem, M. A., Zahra, S., Ahmad, R., & Ismail, H. (2016). Predictors of customer loyalty in the Pakistani banking industry: a moderated-mediation study. International journal of bank marketing, 34(3), 411-430.
Sayani, H. (2015). Customer satisfaction and loyalty in the United Arab Emirates banking industry. International journal of bank marketing, 33(3), 351-375.
Shahrinaz, I., Kasuma, J., Naim, A. S. A., Rahim, E. A., Arabi, A., Ismawi, N., & Rosli, R. (2017). Determinant of customers’ preference in selecting Islamic banks. International Journal of Advanced and Applied Sciences, 4(3), 117-121.
Silverman, B. W. (2018). Density estimation for statistics and data analysis: Routledge.
Singhal, N., Bala, K., & Sarawgi, S. (2018). An empirical study of employee engagement and customer satisfaction in banking sector. Journal of Business Thought, 8(2), 24-41. Retrieved from http:// informaticsjournals.com/index.php/jbt/article/view/21198.
Tadic, D., Aleksic, A., Mimovic, P., Puskaric, H., & Misita, M. (2018). A model for evaluation of customer satisfaction with banking service quality in an uncertain environment. Total Quality Management & Business Excellence, 29(11-12), 1342-1361. doi:https://doi.org/10.1080/14783363.2016.1257905 Varmuza, K. (2018). Methods for Multivariate Data Analysis (Vol. 399). Canada: Wiley Publishing.
Yang, Y. (2018). Is transparency a double-edged sword in citizen satisfaction with public service? Evidence from China’s public healthcare. Journal of Service Theory and Practice, 28(4), 484-506.
Yen, Y. Y., Hui, D. G. M., Jais, M., & Rasiah, D. A. (2018). Determinants of Customer Loyalty in Banking Industry. Advanced Science Letters, 24(5), 3026-3030. doi:https://doi.org/10.1166/asl.2018.11312.
Yilmaz, V., Ari, E., & Gürbüz, H. (2018). Investigating the relationship between service quality dimensions, customer satisfaction and loyalty in Turkish banking sector: an application of structural equation model. International journal of bank marketing, 36(3), 423-440.
Youssef, M. A., Anadol, Y., & Zahrani, A. A. (2017). Modelling customer’s intention to use e-banking in Saudi Arabia: an empirical study. International Journal of Business Innovation and Research, 14(2), 239-258.
Zerva, A., Tsantopoulos, G., Grigoroudis, E., & Arabatzis, G. (2018). Perceived citizens’ satisfaction with climate change stakeholders using a multicriteria decision analysis approach. Environmental Science & Policy, 82, 60-70.
Trần Dục Thức và Phạm Thị Lan Hương. (2017). Các yếu tố tác động đến sự hài lòng của khách hàng đối với dịch vụ thẻ ATM tại Ngân hàng TMCP Ngoại thương Việt Nam. (Master), Trường Đại học Bà Rịa-Vũng Tàu. Viện Du lịch-Quản lý-Kinh doanh, Hà Nội.
Trần Thu Hằng. (2017). Báo cáo ngành ngân hàng 2017. Retrieved from https://vcbs.com.vn/vn/ Communication/GetReport?reportId=4824.
Trần Trọng Khuê và Lê Thúy Kiều. (2017). Các yếu tố ảnh hưởng đến sự hài lòng của khách hàng về chất lượng dịch vụ ngân hàng bán lẻ tại ngân hàng TMCP Đầu tư và Phát triển Việt Nam–Chi nhánh Phú Mỹ. Trường Đại học Bà Rịa-Vũng Tàu. Viện Du lịch-Quản lý-Kinh doanh, Retrieved from http:// thuvienso.bvu.edu.vn/handle/TVDHBRVT/16208
Adeel, A., Ali, R., & Pengcheng, Z. (2018). Network centrality and individual creativity: A mediated moderation of knowledge integration with network cost. Pakistan Journal of Commerce and Social Sciences (PJCSS), 12(3), 983-1007.
Amin, M. (2016). Internet banking service quality and its implication on e-customer satisfaction and e-customer loyalty. International journal of bank marketing, 34(3), 280-306.
Anouze, A. (2019). Customer satisfaction and its measurement in Islamic banking sector: a revisit and update. Journal of Islamic Marketing, 10(2), 565-588. Retrieved from https://doi.org/10.1108/JIMA-07-2017-0080.
Belás, J., Chochoľáková, A., & Gabčová, L. (2015). Satisfaction and loyalty of banking customers: a gender approach. Economics and Sociology, 8(1), 176-188.
Belás, J., Korauš, M., Kombo, F., & Korauš, A. (2016). Electronic banking security and customer satisfaction in commercial banks. Journal of security and sustainability issues, 5(3), 411-422.
Bhat, S. A., Darzi, M. A., & Parrey, S. H. (2018). Antecedents of Customer Loyalty in Banking Sector: A Mediational Study. Vikalpa, 43(2), 92-105. doi:https://doi.org/10.1177%2F0256090918774697
Chatfield, C. (2018). Introduction to multivariate analysis: Routledge.
Colm, L., Ordanini, A., & Parasuraman, A. (2017). When service customers do not consume in isolation: A typology of customer copresence influence modes (CCIMs). Journal of Service Research, 20(3), 223-239.
Darzi Mushtaq, A. (2018). Personnel capability and customer satisfaction as predictors of customer retention in the banking sector: A mediated-moderation study. International journal of bank marketing, 36(4), 663-679. Retrieved from https://doi.org/10.1108/IJBM-04-2017-0074.
Dsouza, R. S., Subhash, K. B., Chen, R. F.,, & Weiermair, K. (2018). Service quality and customer satisfaction: An empirical analysis of banking sector in Goa. International Journal of Banking, Risk and Insurance, 6(2), 1-22.
Fabrigar, L. R., & Wegener, D. T. (2011). Exploratory factor analysis: Oxford University Press.
Firdous, S., & Farooqi, R. (2017). Impact of internet banking service quality on customer satisfaction. The Journal of Internet Banking and Commerce, 22(1), 1-17.
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis (Vol. 6). In: Upper Saddle River, NJ: Pearson Prentice Hall.
Hair Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM): Sage Publications.
Hammoud, J., Bizri, R. M., & El Baba, I. (2018). The Impact of E-Banking Service Quality on Customer Satisfaction: Evidence From the Lebanese Banking Sector. SAGE Open, 8(3). doi:https://doi. org/10.1177%2F2158244018790633
Hill, N., & Alexander, J. (2017). The handbook of customer satisfaction and loyalty measurement: Routledge.
Hjortskov, M. (2019). Citizen expectations and satisfaction over time: Findings from a large sample panel survey of public school parents in Denmark. The American Review of Public Administration, 49(3), 353-371.
Hult, G. T. M., Morgeson, F. V., Morgan, N. A., Mithas, S., & Fornell, C. (2017). Do managers know what their customers think and why? Journal of the Academy of Marketing Science, 45(1), 37-54.
Jalali, M. S., Ferreira, F. A. F., Ferreira, J. J. M., & Meidutė, I. (2016). Integrating metacognitive and psychometric decision-making approaches for bank customer loyalty measurement. International Journal of Information Technology & Decision Making, 15(04), 815-837.
Janahi, M. A., & Al Mubarak, M. M. S. (2017). The impact of customer service quality on customer satisfaction in Islamic banking. Journal of Islamic Marketing, 8(4), 595-604. doi:https://doi.org/10.1108/JIMA-07-2015-0049
Koraus, A., Stefko, R., & Dobrovic, J. (2016). Decision-making satisfaction and behaviour of bank customers: Survey results analysis. Aktual’ni Problemy Ekonomiky (Actual Problems in Economics), 5(186), 291-301.
Larivière, B., Keiningham, T. L., Aksoy, L., Yalçin, A., Morgeson III, F. V., & Mithas, S. (2016). Modeling heterogeneity in the satisfaction, loyalty intention, and shareholder value linkage: a cross-industry analysis at the customer and firm levels. Journal of Marketing Research, 53(1), 91-109.
Ling, G. M., Fern, Y. S., Boon, L. K., & Huat, T. S. (2016a). Understanding customer satisfaction of internet banking: A case study in Malacca. Procedia Economics and Finance, 37, 80-85.
Ling, G. M., Fern, Y. S., Boon, L. K., & Huat, T. S. (2016b). Understanding customer satisfaction of internet banking: A case study in Malacca. Procedia Economics and Finance, 37(4), 80-85.
Lone, F. A., Aldawood, E., & Bhat, U. (2017). Comparative Analysis of Customer Satisfaction towards Islamic and Conventional Banking: An Empirical Study from Saudi Arabia. 7(1), 273-280. doi:https:// ssrn.com/abstract=2918680
Mohan, M. R., John, S. F., Bhati, A., Bansal, A., Ashok, B., Kumar, N., & AN, J. (2016). E-Banking Services and Customer Satisfaction in Dindugal District-An Empirical Study. Journal of Exclusive Management Science, 5(1), 1-5.
Newlin, T., McCall, T., Ottmar, P., Welch, B., & Khairat, S. (2018). Assessing the Satisfaction of Citizens Using Teleconsent in Clinical Research. Studies in health technology and informatics, 247, 685-689.
Ong, K. S., Nguyen, B., & Syed Alwi, S. F. (2017). Consumer-based virtual brand personality (CBVBP), customer satisfaction and brand loyalty in the online banking industry. International journal of bank marketing, 35(3), 370-390.
Pérez, A., & Del Bosque, I. R. (2015). Corporate social responsibility and customer loyalty: exploring the role of identification, satisfaction and type of company. Journal of Services Marketing, 29(1), 15-25.
Rajagopal, K., & Mahajan, V. (2019). Service Quality Gap Analysis in the Indian Banking Sector-“A Customer Perspective Review.”. International Journal of Human Resource Management and Research (IJHRMR), 9(3), 1-8.
Raza, S. A., Jawaid, S. T., & Hassan, A. (2015). Internet banking and customer satisfaction in Pakistan.
Qualitative Research in Financial Markets, 7(1), 24-36.
Saleem, M. A., Zahra, S., Ahmad, R., & Ismail, H. (2016). Predictors of customer loyalty in the Pakistani banking industry: a moderated-mediation study. International journal of bank marketing, 34(3), 411-430.
Sayani, H. (2015). Customer satisfaction and loyalty in the United Arab Emirates banking industry. International journal of bank marketing, 33(3), 351-375.
Shahrinaz, I., Kasuma, J., Naim, A. S. A., Rahim, E. A., Arabi, A., Ismawi, N., & Rosli, R. (2017). Determinant of customers’ preference in selecting Islamic banks. International Journal of Advanced and Applied Sciences, 4(3), 117-121.
Silverman, B. W. (2018). Density estimation for statistics and data analysis: Routledge.
Singhal, N., Bala, K., & Sarawgi, S. (2018). An empirical study of employee engagement and customer satisfaction in banking sector. Journal of Business Thought, 8(2), 24-41. Retrieved from http:// informaticsjournals.com/index.php/jbt/article/view/21198.
Tadic, D., Aleksic, A., Mimovic, P., Puskaric, H., & Misita, M. (2018). A model for evaluation of customer satisfaction with banking service quality in an uncertain environment. Total Quality Management & Business Excellence, 29(11-12), 1342-1361. doi:https://doi.org/10.1080/14783363.2016.1257905 Varmuza, K. (2018). Methods for Multivariate Data Analysis (Vol. 399). Canada: Wiley Publishing.
Yang, Y. (2018). Is transparency a double-edged sword in citizen satisfaction with public service? Evidence from China’s public healthcare. Journal of Service Theory and Practice, 28(4), 484-506.
Yen, Y. Y., Hui, D. G. M., Jais, M., & Rasiah, D. A. (2018). Determinants of Customer Loyalty in Banking Industry. Advanced Science Letters, 24(5), 3026-3030. doi:https://doi.org/10.1166/asl.2018.11312.
Yilmaz, V., Ari, E., & Gürbüz, H. (2018). Investigating the relationship between service quality dimensions, customer satisfaction and loyalty in Turkish banking sector: an application of structural equation model. International journal of bank marketing, 36(3), 423-440.
Youssef, M. A., Anadol, Y., & Zahrani, A. A. (2017). Modelling customer’s intention to use e-banking in Saudi Arabia: an empirical study. International Journal of Business Innovation and Research, 14(2), 239-258.
Zerva, A., Tsantopoulos, G., Grigoroudis, E., & Arabatzis, G. (2018). Perceived citizens’ satisfaction with climate change stakeholders using a multicriteria decision analysis approach. Environmental Science & Policy, 82, 60-70.