Cohort 2016-2018

Master’s Thesis
Research on Customer satisfaction on the
quality of E-Banking
Banking services in Vietnamese
Commercial Banks

Author : Pham The Tuyen

Supervisor : Assoc. Prof. Dr. Pham Thi Lien

Hanoi, May 2018

 ACKNOWLEDGMENTS

Firstly, I would like to thank all of professors and teachers of Ha Noi national
university gave me the opportunity to study in an international standard quality program.
Secondly, I would like to thank Prof.Dr. Pham Thi Lien is teacher led me to complete
this Thesis.
Thirdly, I would like to thank my parents who have always beside me to encourage
and support me throughout learning process as well as this thesis.
Finally, I would like to thank friends, colleagues have always supported me complete
a master's thesis.

Signature

Pham The Tuyen

 TABLE OF CONTENTS

ACKNOWLEDGMENTS .......................................................................................................... 0
ABSTRACT ............................................................................................................................... 4
ABBREVIATIONS .................................................................................................................... 5
LIST OF TABLES ..................................................................................................................... 6
LIST OF CHARTS ..................................................................................................................... 6
LIST OF DIAGRAMS ............................................................................................................... 6
INTRODUCTION ...................................................................................................................... 7
1. Rationale for the Research ...................................................................................................... 7
2. Overview of research situation ............................................................................................... 7
3. Research Objectives ............................................................................................................. 10
4. Research Subjects ................................................................................................................. 10
5. Research Scopes ................................................................................................................... 11
6. Research Questions ............................................................................................................... 11
7. Research Methods ................................................................................................................ 11
8. Structure of the thesis ........................................................................................................... 11
CHAPTER 1. LITERATURE REVIEW ............................................................................. 12
1.1. Electronic Banking services ........................................................................................... 12
1.1.1. The concept of E-banking..................................................................................... 12
1.1.2. The benefits and risks of E-banking ...................................................................... 12
1.1.2.1. The benefits of E-banking .......................................................................................... 12
1.1.2.2. The risks of E-banking ................................................................................................. 14
1.1.3. Types of electronic banking services ..................................................................... 14
1.1.3.1. Mobile Banking ........................................................................................................... 14
1.1.3.2. Phone Banking ............................................................................................................. 15
1.1.3.3. Home Banking ............................................................................................................. 15
1.1.3.4. Internet Banking .......................................................................................................... 16
1.1.3.5. Call Center .................................................................................................................. 17
1.1.3.6. Kiosk Banking .............................................................................................................. 17
1.1.3.7. Electronic Wallet ......................................................................................................... 17
1.1.4. The technical means for the use of E-banking services .......................................... 18
1.2. Quality of E-banking services ......................................................................................... 18
1.2.1. Definition of service quality .................................................................................. 18
1.2.2. The concept of quality of E-banking services ........................................................ 19
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1.2.3. Criteria for measuring the quality of E-banking services ....................................... 20
1.3. Customer satisfaction ...................................................................................................... 21
1.3.1. The concept of customer satisfaction ..................................................................... 21
1.3.2. The relationship between service quality and customer satisfaction ....................... 22
1.4. Models of service quality measurement......................................................................... 22
1.4.1. SERVQUAL Model .............................................................................................. 23
1.4.2. SERVPERF Model ................................................................................................ 25
1.4.3. Model of Technical Quality /Functional Quality ................................................... 25
CHAPTER 2. DATA AND METHODOLOGY .................................................................. 27
2.1. Research Model ............................................................................................................... 27
2.2. Research process .............................................................................................................. 28
2.3. Data sources .................................................................................................................... 30
2.3.1. Primary data .......................................................................................................... 30
2.3.2. Secondary data ...................................................................................................... 31
2.4. Research Methods ........................................................................................................... 31
2.4.1. Qualitative research methods ................................................................................. 31
2.4.1.1. Expert Method ............................................................................................................. 31
2.4.1.2. In-depth interview Method........................................................................................... 32
2.4.2. Quantitative research methods ............................................................................... 33
2.4.2.1. Preliminary quantitative research ............................................................................... 33
2.4.2.2. Formal quantitative research ...................................................................................... 40
CHAPTER 3. RESEARCH RESULTS ................................................................................ 42
3.1. Overview of E-banking services in Vietnam ................................................................ 42
3.1.1. Card services ......................................................................................................... 42
3.1.2. InternetBanking ..................................................................................................... 43
3.1.3. MobileBanking...................................................................................................... 44
3.1.4. Electronic Wallet................................................................................................... 45
3.2. Situation of providing E-banking services at 5 commercial banks in Vietnam .............. 46
3.2.1. E-Banking service of Vietcombank ....................................................................... 46
3.2.2. E-Banking service of Techcombank ...................................................................... 47
3.2.3. E-Banking service of ACB .................................................................................... 48
3.2.4. E-Banking service of BIDV ................................................................................... 49
3.2.5. E-Banking service of Vietinbank ........................................................................... 49
3.3. Research results ............................................................................................................... 50
3.3.1. Results of demographic analysis ............................................................................ 51

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3.3.2. Results of measuring the scales ............................................................................. 52
3.3.3. Results of the Exploratory Factor Analysis (EFA) ................................................. 54
3.3.4. The results of Confirmatory Factor Analysis (CFA) .............................................. 54
3.3.5. The results of the test by the Structural Equation Model (SEM) ............................ 58
3.3.6. The results of test by the Bootstrap method ........................................................... 60
CHAPTER 4. CONCLUSIONS AND RECOMMENDATIONS ....................................... 61
4.1. Conclusions ...................................................................................................................... 61
4.2. Recommendations........................................................................................................... 62
4.2.1. Strengthening the investment in the electronic infrastructure ................................ 62
4.2.2. Strengthening the marketing of E-banking services ............................................... 63
4.2.3. Focusing on the training the staff of the bank ........................................................ 63
4.2.4. Minimizing the risks in E-banking transactions ..................................................... 64
4.2.5. Strengthening the links with organizations and enterprises .................................... 65
REFERENCES ......................................................................................................................... 66
APPENDIX 01 ......................................................................................................................... 70
APPENDIX 02 ......................................................................................................................... 71
APPENDIX 03 ......................................................................................................................... 72
APPENDIX 04 ......................................................................................................................... 76

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ABSTRACT
Research on service quality and service quality satisfaction has attracted a great deal of
attention from scholars over the past two decades and has provided many valuable findings to
society. This study was conducted to measure and determine the factors affecting the quality
of E-banking services based on SERVPERF model of Cronin and Taylor (1992) and the
impact of E-banking services to customers' satisfaction when using E-banking services at 5
commercial banks in Vietnam: VCB, BIDV, ACB, Techcombank, Vietinbank. Data were
collected by interviewing 337 individual customers who have been using E-banking services
at these five commercial banks for 1-3 years. Methods such as descriptive statistics,
Cronbach's Alpha coefficients, Exploratory Factor Analysis (EFA), Confirmatory Factor
Analysis (CFA), and the Structural Equation Model (SEM) were used in this study. The
results show that the quality of E-banking services is influenced by the six factors in the order
of importance: Reliability, Responsiveness, Empathy, Assurance, Tangibles, Accessibility. In
addition, the quality of E-banking services has also positively impacted the satisfaction of
customers in these five commercial banks.
Keywords: Quality of service, E-banking services, customer satisfaction.

TÓM TẮT

Nghiên cứu về chất lượng dịch vụ và sự hài lòng về chất lượng dịch vụ thu hút nhiều sự quan
tâm từ các học giả trong suốt hai thập kỷ qua và đã cung cấp nhiều phát hiện quý báu cho xã
hội. Nghiên cứu này được thực hiện nhằm đo lường và xác định các yếu tố tác động đến chất
lượng dịch vụ ngân hàng điện tử dựa theo mô hình đo lường chất lượng dịch vụ SERVPERF
của Cronin và Taylor (1992) và sự tác động của chất lượng dịch vụ ngân hàng điện tử đến sự
hài lòng của khách hàng khi sử dụng dịch vụ ngân hàng điện tử tại 5 ngân hàng thương mại ở
Việt Nam: VCB, BIDV, ACB, Techcombank, Vietinbank. Số liệu được thu thập qua phỏng vấn
337 khách hàng cá nhân đã và đang sử dụng dịch vụ ngân hàng điện tử tại 5 NHTM này được
1-3 năm. Các phương pháp thống kê mô tả, kiểm định bằng hệ số tin cậy Cronbach’s Alpha,
phân tích nhân tố khám phá (EFA), phân tích nhân tố khẳng định (CFA) và mô hình cấu trúc
tuyến tính (SEM) được sử dụng trong nghiên cứu này. Kết quả cho thấy chất lượng dịch vụ
ngân hàng điện tử chịu sự tác động cùng chiều của 6 yếu tố theo thứ tự quan trọng: Sự tin
cậy, sự đáp ứng, sự đồng cảm, năng lực phục vụ, phương tiện hữu hình, sự tiếp cận. Bên cạnh
đó, chất lượng dịch vụ ngân hàng điện tử cũng tác động cùng chiều với sự hài lòng của khách
hàng tại 5 Ngân hàng thương mại này.
Từ khóa: Chất lượng dịch vụ, dịch vụ ngân hàng điện tử, sự hài lòng của khách hàng.

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 ABBREVIATIONS

TCN Accessibility
ACB Asia Commercial Joint Stock Bank
ATM Automatic Teller Machine
BIDV Joint Stock Commercial Bank for Investment and Development of Vietnam
CFA Confirmatory Factor Analysis
HL Customer satisfaction
EFA Exploratory Factor Analysis
DC Empathy
KMO Kaiser-Meyer-Olkin
OTP One-Time-Password
POS Point of Sale/Point of Service
TC Reliability
DU Responsiveness
PV Assurance
SEM Structural Equation Model
SMS Short Message Service
PTHH Tangible
Techcombank Vietnam Technological and Commercial Joint Stock Bank
VCB Joint Stock Commercial Bank for Foreign Trade of Vietnam
Vietinbank Vietnam Joint Stock Commercial Bank of Industry and Trade

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 LIST OF TABLES

Table 1.1: Measurement criterias of SERVQUAL Model – 1985

Table 1.2: Measurement criterias of the SERVQUAL Model – 1988
Table 1.3: Scales of the SERVQUAL Model – 1988
Table 2.1: A summary of the research hypotheses
Table 2.2: The scales of "Reliability”
Table 2.3: The scales of "Responsiveness”
Table 2.4: The scales of "Assurance”
Table 2.5: The scales of "Empathy”
Table 2.6: The scales of "Tangible”
Table 2.7: The scales of "Accessibility”
Table 2.8: The scales of "Customer satisfaction”
Table 3.1: Organizations providing E-wallet services in Vietnam as of 31/12/2017
Table 3.2: Sample size and survey results
Table 3.3: Statistics of demographic characteristics of the surveyed subjects
Table 3.4: Summary of measurement results
Table 3.5: Results of the Exploratory Factor Analysis (EFA)
Table 3.6: Correlation of observed variables with whole scale
Table 3.7: Reliability assessment
Table 3.8: Unnormalized coefficients of the SEM model
Table 3.9: Normalized coefficients of the SEM model
Table 3.10: Estimated results with sample size 500
Table 4.1: Summary the results of the research hypothesis testing

LIST OF CHARTS
Chart 3.1: Number of cards issued in the period 2012 – 2017
Chart 3.2: Number of ATMs and POS machines in the period 2012 – 2017
Chart 3.3: Number of banks deploying Internetbanking service

LIST OF DIAGRAMS
Diagram 1.1: Model of Technical Quality/Functional Quality
Diagram 2.1: Research Model of the Thesis
Diagram 2.2: The research process of the Thesis
Diagram 2.3: Qualitative research process
Diagram 3.1: Results of CFA analysis
Diagram 3.2: The results of the SEM model test

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 INTRODUCTION

1. Rationale for the Research

Before the explosion of the 4.0 technology revolution, all economic sectors have to
rise to compete and integrate into the regional and world economy. In particular, in the
banking sector; commiting to open the banking and financial services in 2010 is a great
challenge for the system of Vietnamese commercial banks which have recently shifted from
centralized bureaucracy to a market mechanism in a short time, when faced with multinational
corporations with huge financial potential, modern technology and hundreds of years of
experience.
Vietnam is one of the countries with the highest number of internet users in the world
at 14th. The number of Internet users is high, the growth rate is strong which have created
favorable conditions for the development of E-Commerce in general and E-Banking in
particular. At present, the level of competition in E-Banking services in Vietnam is rapidly
increasing: In 2005, Vietnam had only four commercial banks providing E-Banking services;
In 2016, Vietnam had 45 commercial banks providing this service in various forms with high
technology to benefit both banks and customers. E-Banking helps reduce costs by reducing
the number of employees, branches, transaction offices and other facilities while maintaining
high customer service levels. This could facilitate commercial banks in providing services to
customers at lower cost and gaining higher returns than traditional banking services.
Therefore, in order to exploit the advantages of E-Banking services, most commercial banks
in Vietnam have invested heavily in electronic infrastructure and provide customers through
many modern distribution channels. However, up to now, commercial banks in Vietnam have
not met the needs and expectations of increasing customers and are facing many difficulties in
business. Therefore, in order to succeed in a highly competitive industry such as E-Banking,
commercial banks must provide high quality service to their customers. To do that,
commercial banks have to understand the criteria that customers use to evaluate the quality of
E-Banking services. Based on that, the banks have effective solutions to improve the quality
of E-Banking services, create customer satisfaction. From that reason, I chose the problem
“Research on Customer satisfaction on the quality of E-Banking services in Vietnamese
Commercial Banks” for my master thesis.

2. Overview of research situation

So far, there have been many domestic and foreign researches on customer
satisfaction on the quality of E-banking services. Such as:

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 Minjoon Jun and Shaohan Cai (2001) focus on factors affecting the quality of E-banking
services in the United States. Accordingly, the authors present 17 influential factors in
three groups: (1) Thecustomer service quality team consists of 10 factors: reliability,
responsiveness, bank capacity, courtesy attitude, banking credibility, access speed,
communication, customer understanding, cooperation and continuous improvement; (2)
The online quality system team consists of 5 factors: accuracy, ease of use, time,
aesthetics and safety; (3) The banking quality group consists of two factors: the diversity
of banking services, the features of banking products and services. The results show that
there is no significant difference between banks using E-banking services and traditional
banks when providing online banking services. The factors that have the greatest impact
on the quality of E-banking are reliability, responsiveness, access speed and accuracy. On
that basis, the authors also made some suggestions and recommendations to improve the
quality of E-banking services and improve customer satisfaction on the quality of E-
banking services for banks in USA.

Richard Selassie Bebli (2015) has empirically studied the factors affecting the quality of
e-banking services that lead to customer satisfaction in commercial banks in Ghana. Research
has served as a testimony to how the development of information and communication
technologies in Africa over the past two decades has changed the way commercial banks
in Ghana. Based on the factors in the SERVQUAL model of Parasuraman et al. (1988)
and SERVPERF model by Cronin and Taylor (1992), the author presents six factors
affecting the quality of E-banking: speed of access, ease of use, reliability, security,
enjoyment, control. In combination with the use of qualitative and quantitative methods,
the results show that all 6 factors have a positive and significant correlation at 1%, with
the exception of 2 factors are "Enjoyment" and "Control", the other 4 factors are
significant at 5%. Bussakorn Jaruwachirathanakul and Dieter Fink (2005) have studied the
needs of consumers when using E-banking services in Thailand to find out the cause of
customer dissatisfaction, then provides optimal strategies for Thai banks to maximize the
utilization rate of E-banking services.The authors conducted empirical research on a sample
size of 600 customers by submitting questionnaires to 15 people from 40 major Bangkok
companies. The study found that there are 5 factors that affect customer satisfaction
regarding the quality of E-banking services in Thailand include: the features of the Web,
the benefits of using the service, security, time and control. In addition, regulatory
variables such as gender, education level, income, internet experience, and E-banking
experience have had a significant impact. Noel Yee-Man Siu and Jeremy Chi-Wah Mou
(2005) also used the SERVQUAL model developed by Zeithaml et al. (2000,2002) to analyze
8
the factors that affect customer satisfaction on the quality of E-banking services in Hong
Kong as well as their future intentions. Five factors are identified: reliability, efficiency,
security, problem resolution and security. Analytical results show that all factors except
"security" are important in determining overall service quality perception. The "reliability,
handling and safety" factors have a significant impact on customer satisfaction, not only the
"safety" and "effectiveness" factors significantly related to consumer behavior in the future.
Kari Pikkarainen, Tero Pikkarainen, Heikki Karjaluoto and Seppo Pahnila (2006) used the
EUCS model to examine the satisfaction of E-banking users in Finland. A survey was
conducted on a sample scale of 268 individual customers conducted using convenient
sampling at over 40 commercial banks in Finland. The results show that there are three
factors: ease of use, accuracy, and safety that affect customer satisfaction in the quality of
E-banking services in Finland. The results show that the EUCS model can be used to
assess customer satisfaction in the quality of E-banking services, replacing traditional
models when evaluating service quality such as model SERVQUAL by Parasuraman et al.
(1988) and SERVPERF model by Cronin and Taylor (1992).
In Vietnam, there have been some researches on the quality of E-banking services and
the satisfaction of customers on the quality of E-banking services. These studies also selected
the model, identified criteria for assessing the quality of E-banking services and also used
quantitative methods to test the relationship between variables. Such as:

Le The Gioi and Le Van Huy (2012) study the relationship between service quality and
customer satisfaction and loyalty in the use of banking services. The study looked at the
relationship between factors and then adjusted those factors to fit the market data. Based on
the Exploratory Factor Analysis (EFA), Structural Equation Model (SEM), the authors have
obtained some results: develop a scale for the quality of banking services based on the
SERVQUAL scale and some additional scales suitable for the conditions in Vietnam; Identify
the factors that affect customer satisfaction on the quality of banking services including:
visibility, reliability of service delivery, trust in customer promise, sympathy and
responsiveness, branch network and ATM. Based on the results of the study, the authors also
provided some policy suggestions in the formulation of business strategies for commercial
banks in Vietnam.Tran Duc Thang (2015) has focused on developing a model of the
relationship between the quality of E-banking services and the satisfaction and loyalty of
customers under the influence of intermediaries as transforming costs, the trust of customers
in E-banking services in Vietnam. By using the Structural Equation Model (SEM), the results
show a very high correlation between the overall quality of E-banking services and customer
satisfaction and between satisfaction customers with loyalty of customers. Thus, it can be said
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that in Vietnam, if the overall quality of E-banking services is high enough to meet the needs
of customers, the customer will be satisfied and will be loyal to the bank; that is, It will
continue to use the services of the bank in the future and may be good word of mouth for the
bank. These findings will serve as a basis for Vietnamese commercial banks to develop their
competitive strategies in the field of E-banking.

In summary, the review of research shows that: there were a lot of researches on
"Quality of E-banking services".These studies focused on building models such as
SERVQUAL, SERVPERF, EBAM, EUCS, TRA, TPB, TAM, TAM2, IDT, UTAUT to
evaluate the quality of E-banking services; factors affecting the quality of E-banking services;
customer satisfaction on E-banking service quality or the relationship between quality of E-
banking services and satisfaction and loyalty of customers. Within the scope of the topic, the
author will focus on the impact of factors on the quality of E-banking services and the quality
of E-banking services to the satisfaction of customers at commercial banks in Vietnam.

3. Research Objectives
The objective of the thesis is to research the customer satisfaction about the quality of
E-banking services at commercial banks in Vietnam; On that basis, it will propose feasible
solutions to further improve customer satisfaction on the quality of E-banking services for
commercial banks in Vietnam in the coming time.
In order to achieve that objective, the topic is directed towards specific objectives:
 Systematizing basic theoretical issues on E-banking, quality of E-banking services and
customer satisfaction;
 Analyzing and assessing the current status of the quality of E-banking services provided
at Vietnamese commercial banks;
 Developing a system of scales and models for measuring the quality of E-banking
services at Vietnamese commercial banks;
 Examining the impact of factors on the quality of E-banking services and the quality of
E-banking services to the satisfaction of customers at Vietnamese commercial banks;
 Suggesting some solutions to further improve customer satisfaction about the quality of
E-banking services for Vietnamese commercial banks during the integration period.

4. Research Subjects

The thesis will focus on the satisfaction of customers when using E-banking services
in Vietnam commercial banks.

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5. Research Scopes

 About space: Currently, the commercial banking system in Vietnam includes: 4 State-
Owned commercial banks, 31 Joint Stock commercial banks, 6 banks with 100% foreign
capital, 2 Joint venture banks. Within the framework of this thesis, the author only limits
the study of 5 major commercial banks: Vietnam Joint Stock Commercial Bank of
Industry and Trade (Vietinbank), Joint Stock Commercial Bank for Foreign Trade of
Vietnam (VCB), Joint Stock Commercial Bank for Investment and Development of
Vietnam (BIDV), Asia Commercial Joint Stock Bank (ACB), Vietnam Technological and
Commercial Joint Stock Bank (Techcombank).

 About objects: Individual customers (including internal customers and external customers
of the bank) have been using E-banking services at the above 5 commercial banks for 1-3
years.

 About time: secondary datas are collected from 2012 to 2017, the primary datas are
surveyed in December 2017.

6. Research Questions

 What are the factors that Vietnamese commercial banks should consider when evaluating
the quality of E-banking services?
 How is the quality of E-banking services in Vietnamese commercial banks measured?
7. Research Methods
The thesis uses a combination of different research methods such as: descriptive
statistical methods; methods of synthesis, analysis and comparison; qualitative research
methods and quantitative research methods.
8. Structure of the thesis
This thesis includes four main chapters:

Chapter 1: Literature Review

Chapter 2: Data and Methodology

Chapter 3: Reseach Results

Chapter 4: Findings and Recommendations

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 CHAPTER 1. LITERATURE REVIEW

1.1. Electronic Banking services

1.1.1. The concept of E-banking

So far, there are many different understandings about E-banking: E-banking is a

service where banks provide their customers with access to their accounts for business
transactions and information gathering via electronic communications channels such as cash
machines (ATM), home banking and internet banking (Pikkarainen et al, 2004). E-banking is
all transactions that can take place via an electronic system such as the web, the internet;
Helps all customers make transactions, access their accounts or to get information over the
internet (Azam Khurshid, 2014).

The State Bank of Vietnam defines: “E-banking services are modern and multi-
functional banking services that are distributed to wholesale and retail customers quickly
(online, 24 hours a day, 7 days a week) through distribution channels (Internet and other
terminal equipment such as computers, ATM, POS, fixed telephones, mobile phones ...)".
According to Truong Duc Bao (2003, p.13) “E-banking is the ability for a customer to
remotely access a bank to collect information, perform payment transactions and finance
based on custody accounts at that bank”. With this understanding, E-banking service is a
computer software system that allows customers to learn or use banking services by
connecting their computer networks with banks. According to Tran Duc Thang (2015, p.22)
“E-banking services are banking services provided through electronic means and
telecommunication networks. Inside, electronic means are the means of operation based on
electrical, electronic, digital, wireless transmission, electronic or equivalent technology.
Telecommunication network includes internet, telephone network, wireless network, intranet,
extranet…”.

Thus, the above definitions define e-banking services through delivery services or
through electronic distribution channels. This definition may be true from time to time but it
is not possible to outline both the history of development and the future development of E-
banking. From the above concepts, the author can generalize as follows: “E-banking services
include all types of transactions between banks and customers (individuals and
organizations) based on digital data processing and transfer to provide banking products and
services.”.
1.1.2. The benefits and risks of E-banking
1.1.2.1. The benefits of E-banking (Tran Duc Thang, 2015)
For the Bank: It is characterized that transactions are entirely carried out through
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electronic equipment and telecommunication networks; E-banking has brought many practical
benefits to banks:
- The cost of dealing with E-Banking services is often much lower than traditional
services, thus saving the bank's costs and thus increasing the bank's revenue and profit.
- E-banking increases competitiveness and broadens the scope of operations for banks. E-
Banking also helps commercial banks to implement the strategy of "Globalization" without
having to open any other branches in the country and abroad.
- E-Banking also helps banks to increase efficiency of capital mobilization and use: when
customers use E-Banking service, they must open a payment account and maintain a certain
amount of money at the bank, so the bank also mobilizes some of its capital.
- The convenience of E-Banking services from application technology, from the software
used and from the network service provider and internet service has attracted and kept many
customers dealing with banks and become traditional customers of the banks.
- E-banking can provide a package service to customers: banks can link with insurance
companies, securities companies and other finance companies to provide integrated services
aimed at meet the needs of every customer in the market.
For customers: E-banking services not only bring about practical benefits to banks
but also to customers:
- Saving time and money: Using E-banking services with electronic means allows
customers to carry out transactions with banks anytime, anywhere without having to go to the
bank, thus saving time and fuel costs, travel expenses for customers. In addition, transaction
costs of E-Banking services are often much lower than traditional ones, thus saving on service
costs for customers.
- Reducing transaction procedures at banks: If the traditional banking services,
customers have to complete the required information on the printed form of the bank and have
to move from one transaction counter to another; the E-Banking service, customers only need
to sit in one place and carry out specific instructions on the applications provided by the bank
that can carry out all transactions such as: electricity bill, card, pay tuition, transfer money ....
- Customers will receive many incentives: when using E-Banking service, customers
will receive many incentives from banks, from service providers such as payment by bank
card will be discounted, online phone recharge will receive high discount plus value card
charge ...
For economy: Every year, the State Bank does not have to spend money on printing,
distributing and preserving, transporting cash, reducing the amount of money in circulation
and thus controlling inflation. E-Banking has created a new way of doing business,

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contributing to boosting economic, trade and tourist activities, creating conditions for
expanding trade and economic cooperation with the region and the world.
1.1.2.2. The risks of E-banking (Tran Duc Thang, 2015)
In addition to the benefits that E-banking offers to both banks and customers, E-banking
also has a number of risks:
- Risk of security: If the access control of the banking system is not good, it can lead to
the fact that hackers have successfully committed illegal activities. For example, customers
who use personal information (passwords, credit card numbers, account numbers, etc.) are not
careful enough to make hackers have access to their accounts. As a result, banks face financial
losses due to transactions that are not made by unauthorized clients.
- Risks of reputation: reputational risk can arise when customers encounter obstacles to
new banking services but are not provided with sufficient information about the use and
procedures for solving problems; Or because of the difficulties of the telecommunications
system that customers can not access their customer information or source of money,
especially when there are no alternative means. Even, reputational risk may also arise from
deliberate attacks on the bank that are "hackers" that illegally infiltrate the Website of the
bank, altering the falsification of the information on banking services.

1.1.3. Types of electronic banking services

1.1.3.1. Mobile Banking
It is an online service through the mobile phone network in parallel with the form of
Internet service was born in the 90s. With the development of science and technology, smarter
phones have more memory capacity. Users can install the applications provided by the bank,
so that the application on the phone acts as a client application on the computer if connected
to the Internet; or Telecom Developers are pre-installed on the SIM Toolkit that allows
customers to make transactions with any bank connected to the network without having to
connect to the Internet. The advantage of this form is the mobility of the phone that the
customer always carry with him. The downside is that the information provided to the
customer is simple and undergoes several small steps to complete any transaction. Therefore,
this form was created to address the need to pay the Micro payments or automated services
without a server. To participate in this service, customers must register to become a full
member in which the customer must provide his basic information such as mobile phone
number, personal account number. After that, the customer will be provided with an
identification code (ID) and will be converted into a bar code for posting to the mobile phone,
which will help to provide customer information when paying quickly and accurately. With

14
the identification number, customers are also given a personal identification number (PIN) to
confirm the payment transaction when the payment service provider requests. After
completing the necessary procedures, the customer will be a full member and eligible to pay
via mobile phone. Mobile Banking services such as: View information about interest rates,
exchange rates; View balance of payment deposit account, card account; Receive a message
when the balance of payment account or card account changes; View the latest transaction
listings (up to 5 listed); Transfer money through card accounts; Check the receipt of identity
card or passport; Payment of electricity bill, water bill, Internet charge, mobile phone bill,
cable TV fee ….

1.1.3.2. Phone Banking

The banking service is provided through a system of server and management software
located at the bank, linked to customers through the service switchboard. This service gives
customers a new convenience that customers can use their phones anytime, anywhere to listen
to their banking information and personal account information. This is an automated
answering system that works 24 hours a day. Customers simply press the keys on their phone
keypads in accordance with the bank code required to request the system to respond to the
required information at any time including outside office hours. However, one limitation is
that the information updated via this service is only available at the end of the previous day.
The process of using Phone Banking is as follows: (1) Registration to use the service: the
customer must provide the necessary information and sign the contract using this service.
Then the customer will be provided with two identifiers which are customer code and system
access key; In addition, customers are provided with an account code to facilitate the
transaction as well as ensure security. (2)Transaction processing: When customers call the
operator, the system will automatically enter the customer code and service access code,
according to the customer's prompt will select the function key corresponding to the service
you need to transact. Customers can change or edit before confirming transactions with banks,
transaction documents will be printed and sent to customers when the transaction is finished.
Services provided through Phone Banking include: Check balance of payment deposit
account; Check information on interest rates, exchange rates, securities; Listen to the latest
deals (up to 5 transactions); Ask banks to fax transaction listings, savings interest rates, stock
quotes, exchange rates ...
1.1.3.3. Home Banking
HomeBanking is built on one of the two platforms: the Software Base and the Web
Base through the server, the Internet and personal computers. With this service, the customer

15
deals with the bank via the network but is the internal network built by the bank itself
(Intranet). This service allows customers to perform most bank transfer transactions at home
or at the office without access to the bank by accessing the bank's network. This is a highly
secure product thanks to the operation of the local communications network between the
customer and the bank through the VPN system. The process of using HomeBanking services
for individual customers includes the following steps: (1) Connect and sign in: Customers
connect their computer to the computer system of the bank through the Internet (Dial-up,
LAN, WAN, Direct-Cable ...) and then visit the Website of the bank serves themselves. Once
verified, the customer will be set up a secure transmission (https) and login to the computer
network of the bank. (2) Transaction: after login, customers can use a variety of E-banking
services depending on their transaction needs such as querying account information,
transferring money, paying electronically... (3) Check, confirm transaction and exit the
network: When the transaction is completed, the customer must check the transaction then
exit the network. The necessary documentation will be managed, stored and sent to customers
upon request.
For business customers, the process of using the HomeBanking service is more
complicated. Normally, when registering for this service, the enterprise must register two or
three User access: User input, User control and User browsing. The User input is the
accountant, the User Control is the chief accountant or the authorized person and the User
browsing is the account holder or the authorized person. HomeBankinng services include:
Transfer within and outside the banking system; Payment of bills such as money, water, cable
television, Internet charges, telephone charges ...; Funds transfer through ID card or passport;
Currency conversion through bank deposit account; Look up information on payment account
balance, card account; List the most recent transactions on your account (up to 5 listed).
1.1.3.4. Internet Banking
A type of E-banking on the browser, also known as online banking. This is a broad
distribution channel for banking products and services to customers anywhere and at any
time. To use this service, customers only need to sign up for a service with a bank and one of
the devices such as a tablet, laptop or desktop computer with an Internet connection is
available for use. The advantage of this service is that it does not require customers to have
complex settings and does not have to install client applications so customers do not have to
spend maintenance fees; The user interface is very eye-catching, clear layout, large size on the
Web browser platform. The downside is the inconvenience of scrolling due to the size of the
computer.

16
 With a computer connected to the Internet, through the access code and password is
provided, customers can access the website of the bank to be provided with information and
fully instructions on the use of all products. the bank: View your account balance at the
current time; view transaction history; View information about exchange rates, interest rates
and securities; Transfer within and outside the banking system; Send all inquiries, comments
on products and services of the bank and be resolved quickly; Payment of bills such as
electricity, water, cable television, telephone charges, Internet charges ...
1.1.3.5. Call Center
Call Center is the banking service through the central telephone, customers with
accounts at any branch can still call a phone number of this center for all information. Unlike
the PhoneBanking service that provides only pre-programmed information, this service can
flexibly provide information or answer customer inquiries. Therefore the limitation of this
service is always to have people 24/24. Services provided by the Call Center include:
Introduction to the telephone card products of the bank; Consult card use, register card for
telephone; Apply for voice loans (for individual customers); Providing information on
payment deposit accounts, savings accounts and card accounts; Payment of bills such as
electricity, water, cable television, telephone charges, Internet charges; Remittance within and
outside the banking system; Receive telephone complaints and inquiries from customers when
using products and services.
1.1.3.6. Kiosk Banking
Kiosk Banking is an electronic banking service that uses touch screen, customers just
touch the screen lightly to be able to perform transactions such as: deposit savings; transfers
within and outside the banking system; pay taxes or pay bills of electricity, water, cable
television ... On the streets there will be stations or centers that are connected to the Internet at
high speeds. When customers want to transact, they only need to enter the personal
identification number and password to confirm that they can use the product banking services.
With this service, banks will reduce the number of ATMs and reduce the amount of cash in
circulation; Customers will be served with the highest quality and most convenient but now
this service is less bank provided.
1.1.3.7. Electronic Wallet
E-wallet is a service that provides customers with an electronic account created on a
carrier (such as electronic chip, mobile phone sim, electronic data ...), allowing customers to
store a monetary value is guaranteed by the amount of cash equivalent to the amount
transferred from the customer's payment deposit account or other forms into the deposit
account of banks for the execution of transactions. E-wallet service providers are responsible

17
for managing E-wallet accounts of customers and processing transactions arising on the
system when the activities of loading, withdrawing money, trading goods, services of
customers; calculate the obligation and notify the bank to debit and credit the relevant real
money accounts of the parties involved.

1.1.4. The technical means for the use of E-banking services

 Mobilephones: Currently, most of the large mobile phones with GPRS or network
connections are able to install software and use E-banking.
 Electronic payment equipment (POS, EDC): Electronic devices with electronic readers
connected to the bank's network can transmit and track information from credit cards,
smart cards of shoppers at point-of-sale current payment transactions. Through credit
cards that customers can purchase, pay for non-cash services, the bank replaces the
paying customer for the point-of-sale and the bank receives a certain fee from the funds
themselves.
 Computers: Through a networked computer, customers can access the Website of any
bank to use the E-banking services provided by the bank.
 Website and Internet: The Internet is a wide area network, which brings together
thousands of computer networks around the world connected to each other. Web is a
hypertext made on the internet. Via the internet, customers can access the information
posted on the Bank's Web site and can conduct E-banking transactions provided through
the Bank's website.
 ATM Card: An ISO card that includes debit and credit cards. Debit card used to perform
transactions such as checking accounts, withdrawing money, transferring money, paying
bills ... For debit cards, customers using the amount of money already on the card can
withdraw money at a negative level or withdraw overdraft. Credit card used to pay at
the point of sale or to withdraw cash at ATMs. Credit cards are based on the credit line,
depending on the type of card and the type of customer that the bank will provide to the
customer a certain amount of credit. Customers can withdraw the amount issued by the
bank within a certain period and be forced to pay when maturity. If the credit limit is not
paid in time, the bank will charge interest rates as high as prescribed. These two types of
cards are accepted as a non-cash payment at card acceptance points.
1.2. Quality of E-banking services
1.2.1. Definition of service quality

18
 Quality of service is assessed depending on the culture, the field of business should
have many different definitions. Through reference to the literature, the author recognizes
some of the notion of service quality used by the author:
Grönroos (1984, p.37) "Quality of service is the difference between the quality of service that
customers expect with the quality of service that customers actually feel". This concept has
been reaffirmed in Parasuraman et al. (1985, p. 42) as follows: “Quality of service can be
defined as the comparison of customers between the quality of service they expect and the quality
of service they receive. Quality of service is determined by the difference between the customer's
expectations for the service and the actual perception of the service and can be expressed by the
formula: Quality of Service = Perception - Expectation". According to Woodside et al. (1989):
“Quality of service is understood by the answer to the question: Is customer service what they
expect or different from what they expect? The services that customers receive are almost
what they expect or better or worse than what they expect". In the opinion of Philip Kotler et
al. (2005) "Quality of service is defined as the ability of a service to include overall durability,
reliability, accuracy, ease of use and ease of repair. and other valuable attributes to perform its
functions. In addition, due to the different cultural environment, consumers in different
countries may perceive different quality of service in different types of service".
Thus, although there are many different views but the same can be understood “Quality
of service is the response to the needs and expectations of customers, in other words the
quality of service is the difference between the customer's expectation and the perceived
service provided”.
1.2.2. The concept of quality of E-banking services
The concept of quality of E-banking services is no stranger to people because it is a
matter of concern to managers in today's technology. So far, there are many different views
on the quality of E-banking services, and different studies have come up with different
concepts of E-banking service quality. Such as:
According to Jun and Cai (2001, p.8) "The quality of E-banking services is assessed on
all three aspects: quality of customer service, quality of banking services and quality of online
system". Yang et al. (2004, p.11) "The quality of E-banking services is assessed on three
aspects: quality of online customer service, quality of banking services and quality of system
online information". According to Richard (2015) "Quality of E-banking services is assessed
by customer satisfaction when they use E-banking services". In line with Richard (2015),
some authors argue that the quality of E-banking services is the satisfaction of customers
about how banks provide E-banking services (Doan Thu Thuy, 2012) and (Le Thi Bich

19
Nguyet, 2015). At a higher level, Tran Duc Thang (2015,p.25) said, "The quality of E-
banking services is not only reflected in customer satisfaction but also in customer loyalty".
From the analysis of the concept of "E-banking" and the definition of "quality of
service" we can understand “The quality of E-banking services is the perception of
customers that the gap between the expectations of E-banking services will be provided
with their perception when using E-banking services”.

1.2.3. Criteria for measuring the quality of E-banking services

The measurement of E-banking service quality depends on many factors that affect
the perception of the user and the nature of the service. There were many authors who studied
this issue: Parasuraman et al. (1982, 1985, 1988); Cronin and Taylor (1992, 1994); Gronroos
(1984, 1990); Dabholkar et al. (2000)... The authors have developed analytical frameworks
for assessing service quality with a variety of components and applications in different areas,
but the most common are the five of service quality assessment criteria by Parasuraman et al.
(1988) included “Reliability, Responsiveness, Tangibles, Assurance, Empathy”:
(1) Reliability: Reliability demonstrates the ability to deliver consistent and timely
service right from the first time. This indicator is important for services in the field of rail,
bus, banking, freight... For E-banking services, this indicator is measured by the following
scales: (i) The level of safety and security of E-banking, (ii) The stability and accuracy of the
transaction. Indeed, E-banking is a service based on modern technology. Customers do not
have to go to the bank to make transactions, so the safety and security are always put on top
by customers. From the customer's point of view, the security and confidentiality here
includes such factors as the confidentiality of information for customers, authentication of
customer information,.. to avoid risks such as loss of money, disclosure of customer
information when bad guys take advantage.
(2) Responsiveness: Responsiveness is expressed through the availability of service
personnel when providing timely service to customers. In order to measure the responsiveness
of E-banking, we can use rating scales for the degree of willingness to introduce, guide
customers to use, guide customers to make complaints; answering customer inquiries, the
ability to provide services at all times that customers need.
(3) Tangibles: Tangibles are represented by a system of facilities, equipment, personnel,
materials and media for service delivery. These factors are used at different levels for services
to take place, sometimes the underlying factor is hidden, so the user is less visible. For E-
banking services, customers only have to go to the counter to register or deposit into their
payment account for use at every transaction, so the criteria for tangible means are perceived

20
by customers through: service manual; registration form for using the service; the form of
deposit into the account; devices that support access to E- banking.
(4) Assurance: Assurance is demonstrated by the expertise, ability to meet the current
and future needs of customers as well as the courteous manner of employees to customers. In
order to measure the "Assurance" indicator, E-banking uses the scales of professional
expertise of bank staff, transaction processing, transaction processing descriptions, the speed
at which transactions are handled, how complaints handling is handled.
(5) Empathy: Empathy is expressed through attention, care to each customer. For E-
banking services, this criterion is reflected in the bank's empathy for customer needs based on
the transaction value, frequency of use of services and utilities that customers regularly use,
from which the orientation for customers in using the service. Empathy is felt by the
customers through the scale of ease of use, the ability to meet the diverse needs of the type of
banking services that customers need ...

1.3. Customer satisfaction

1.3.1. The concept of customer satisfaction

Customer satisfaction is seen as the foundation of the concept of marketing. There are
many studies of customer satisfaction and the fact that there are many different
understandings of customer satisfaction. According to Kotler (2000,p.86) "Customer
satisfaction is the level of feeling that is the joy or frustration of the customer from comparing
the results they receive from using the service with their expectations". Or "customer
satisfaction is their reaction to the perceived difference between known experience and
expectation" (Parasuraman et al. 1988).
Tse and Wilton (1988) argue that "Customer satisfaction is the response of customers
to the difference between desire and perception after using products or services". According
to Oliver and Bearden (1995,p.48) "Customer satisfaction is a business task expressed by the
relationship between the value of the product or service and the expectations of the customer”.
Zeithaml and Bitner (2000) argue that "Customer satisfaction is the customer's perception of a
product or service that meets their needs and expectations”. According to Kotler & Keller
(2006,p.62) "Customer satisfaction is the level of sensation derived from comparing the
perception of a product to the expectations of that person. Accordingly, satisfaction is divided
into three levels:
- If customer perception is smaller than expected, customers feel dissatisfied.
- If expectations are met, customers feel satisfied.
- If the perception is bigger than expected, the customer will feel satisfied".

21
 In Vietnam, the satisfaction of customers has been studied by a number of authors in
different fields such as in the field of mobile telecommunication by Thai Thanh Ha and Ton
Duc Sau (2007); banking sector by Duong Thi Ngoc Phuong (2013), Tran Duc Thang
(2015)… In any field, the authors have a general view of customer satisfaction is the
emotional state of the customer when comparing the results received from the service
compared to their expectations. Today, in the context of fierce competition, customer
satisfaction can be viewed as a significant success for the organization because customer
satisfaction can lead to customer retention (Jamal and Kamal, 2002).

In summary, from the point of view, the author gives the concept as follows:
“Customer Satisfaction is the emotional state in which the needs and desires of the customer for
the value / benefit of the service are lower, equal or higher than expected, leading to customer
loyalty to the bank's services".

1.3.2. The relationship between service quality and customer satisfaction

The relationship between service quality and customer satisfaction has been the
subject of much debate among researchers over the last decade. There have been many studies
of customer satisfaction in different service sectors and generally concluded that quality of
service and customer satisfaction are two distinct concepts but they have a close mutual
relationship. Indeed, in the service sector, the concepts of "quality of service" and "customer
satisfaction" are fundamentally different based on the analysis of causal relationships between
them. According to Zeithalm and Bitner (2000), customer satisfaction is influenced by many
factors such as: quality of service, price, personal factors, environment ... As such, customer
satisfaction is a broader concept than quality service. With this view we can see the quality of
service as a factor in the impact on customer satisfaction. There have been many practical
studies on the relationship between quality of service and customer satisfaction. Cronin and
Taylor (1992); Spreng and Mackoy (1996); Jamal and Naser (2002) examined this
relationship and concluded that service quality leads to customer satisfaction, which is the
premise of satisfaction and also the factors that affect customer satisfaction. Therefore, to
improve customer satisfaction, service providers must improve service quality. In other words,
quality of service and customer satisfaction are closely interrelated in that quality of service is
what is created first and determines customer satisfaction. Therefore, we can use customer
satisfaction to measure service quality.

1.4. Models of service quality measurement

22
1.4.1. SERVQUAL model
The Servqual model is one of the tools for measuring service quality; It has been so
popular ever since not only in marketing but also in other fields such as: health care, banking,
retailing, hotel services, commercial services... In 1985, Parasuraman and his colleagues set
out 10 criteria for measuring service quality:
Table 1.1. Measurement criterias of SERVQUAL Model – 1985
Measurement criterias Description
Measure to create easy conditions for customers to access
Accessibility services such as: shorten the waiting time of customers, places
of service and convenient opening hours for customers.
Measure the expertise of the staff when performing services,
Competence the ability to research to capture the relevant information
necessary for customer service.
Measure communication, communicate it to customers in a
Communication language they understand easily and listen to customer-related
issues such as: explaining the service, cost, resolving
complaints, or answer questions ...
Measure the style of hospitality, courtesy and customer
Courtesy friendliness of the staff.
Reliability Measure the ability to perform the right service on time, right
from the first time.
Responsiveness Measure the availability of service staff when providing service
to customers.
Credibility Measure the ability to create trust for customers, make
customers trust in the bank.
Security Measure the ability to ensure the safety of customers, expressed
through the safety of material, financial as well as information
security.
Tangibles Measure the system infrastructure, equipment for service, staff
service.
Understading/knowing Measure the ability to understand the needs of customers by
the customer understanding the requirements of customers, taking care of
them personally and identify the customer regularly.
Source: Parasuraman et al. (1985)
A model of 10 service quality measures has the advantage of covering almost every
aspect of the service. However, this model has the disadvantage of being complex in
measurement and this model is theoretically possible, even though many components of the
service quality model fail to achieve distinctive values. Therefore, these researchers have

23
repeatedly tested the model and in 1988 Parasuraman and his colleagues summarized the 10
components into 5 criterias for measuring service quality:
Table 1.2. Measurement criterias of the SERVQUAL Model – 1988
Measurement criterias Description
Measure the ability to perform the right contract, accurate and
Reliability prestigious service right from the first time.
Measure the customer's enthusiasm and meet customer
Responsiveness requirements, provide fast service, solve problems quickly and
efficiently.
Measure the level of expertise, style of service, warmly with
Assurance customers, the ability to communicate well. This is the factor
that creates credibility, trust for customers.
Empathy Measure the care of each individual customer.
Tangibles Measure the system infrastructure, equipment for service, staff
service.
Source: Parasuraman et al. (1988)
The SERVQUAL scale consists of two parts, each with 22 statements. The first part is
to determine customer expectations for the type of business/banking services in general. The
second part is to determine the customer's perception of service performance of the surveyed
business/bank. The results of this research are to find out the distance between customer
perception of service quality and customer's expectation about quality of service. Thus,
according to SERVQUAL model, service quality is defined as follows:
Quality of service = Perceived level (P) - Expected value (E).
If the distance (P - E) is greater than 0 means that the customer is very interested in the
service; If 0 means customer is satisfied and less than 0 means the customer is disappointed or
unhappy about the quality of service provided.
Table 1.3. Scales of the SERVQUAL Model – 1988
Measurement criterias Scales
1. When Bank X promises to do something at some time, they
will do.
2. When you have a problem, Bank X has shown genuine interest
Reliability in solving the problem.
3. Bank X performs the service right from the first time.
4. Bank X provides the service exactly as promised.
5. Bank X is advised not to make any mistakes.
1. The staffs of Bank X tell you when to do the service.
2. The staffs of Bank X quickly perform the service for you.

24
 Responsiveness 3. The staffs of Bank X are always available to help you.
4. The staffs of Bank X are never too busy to respond to your
requests.
1. Behavior of the staffs at Bank X creates confidence for you.
Assurance 2. You feel safe while dealing with Bank X.
3. The staffs of Bank X are always open to you.
4. The staffs of Bank X have sufficient knowledge to answer
your questions.
1. Bank X always pay special attention to you.
Empathy 2. Bank X has employees who care about you.
3. Bank X for your benefit is their mindset.
4. The staffs of Bank X understand your needs.
5. Bank X works at convenient times.
1. Bank X has a very modern equipment system.
Tangibles 2. Facilities of Bank X look very eye-catching.
3. The staffs of Bank X dressed very politely.
4. Bank X's advertising page is very beautiful.
Source: Parasuraman et al. (1988)
1.4.2. SERVPERF Model
In 1992, Cronin and Taylor proposed the SERVPERF model and suggested using this
model better than the SERVQUAL model. The SERVPERF model is developed on the basis
of the SERVQUAL model, in which the components remain intact, but the measuring scale
eliminates the expectation and only retains the perception of the customer for the service they
receive. Therefore, according to the SERVPERF model, service quality is defined as follows:
Quality of service = level of perception. Therefore, the questionnaire in the SERVPERF
model is more than half short of the SERVQUAL model and saves time and more
sympathetic to the respondents. Since then many researchers have conducted experiments to
compare the SERVQUAL and SERVPERF models in different contexts and domains and
conclude that the SERVPERF model is better than the SERVQUAL model.
1.4.3. Model of Technical Quality /Functional Quality
In addition to the SERVQUAL and SERVPERF models, Model of Technical Quality/
Function Quality of the Gronroos (1984) is also considered as a measure of service quality.
Although this model has not been extensively tested as the SERVQUAL and SERVPERF
models, it has also been used by some authors to measure service quality in architectural
design by Baker and Lamb (1993); the accounting of Higgins and Ferguson (1991); Pizza
delivery Service of Allaway (1993); banking services of Lassar et al. (2000)... In this model,
the quality of service is assessed by comparing the value expected by the customer before

25
using the service and the value that the customer receives when using the service. To measure
service quality, Gronroos has come up with three criterias: technical quality and functional
quality and image. Inside:
(1) Technical quality: describe what the service is provided and the quality that
customers receive from services such as computer systems, technical solutions to technology .
(2) Functional quality: describes how the service is provided or how the customer
receives quality results.
(3) Image: built mainly on the technical quality and functional quality of service.

Expectations Perception of Service

on services service quality received

Technical Image Functional

quality quality

Diagram 1.1: Model of Technical Quality/Functional Quality

Source: Gronroos (1984)

26
 CHAPTER 2. DATA AND METHODOLOGY

2.1. Research Model

There are many models of service quality measurement, among which there is a
similarity in service quality as a general concept comprising a number of factors, each of
which reflects an attribute of quality of service, the researchers found that the SERVPERF
model by Cronin and Taylor (1992) is the most suitable model to use in measuring service
quality in many different areas, especially in the banking sector. Moreover, from the point of
view of researchers around the world as well as the use of this model in measuring service
quality, it has been shown that evaluating the quality of service in a given field is based on
perceptions, views and reviews of customers. Thus, from the theoretical basis and the
viewpoint of researchers around the world, author will use 5 measurement criterias of the
SERVPERF model to measure the quality of E-banking services at Vietnamese commercial
banks. However, in addition to issues related to human factors, facilities ... the bank also
needs to create conditions for customers easy access to E-banking services because this
service requires modern technology, unlike traditional banking services. Thus, from the five
factors of the original model, the author adds an element is "Accessibility" to measure
banking issues that facilitate access to banking services. The research model of the thesis
consists of 6 factors that affect the quality of E-banking services as 6 independent variables.
In addition, in order to test the impact of the quality of E-banking services on customer
satisfaction in Vietnamese commercial banks, the author proposes to add one more factor
"Customer Satisfaction" makes the second dependent variable of the model. The research
model and hypotheses of the thesis will be as follows:
H1(+)
Reliability
H2(+)
Responsiveness
H3(+)
Assurance Quality
H7(+)
CUSTOMER
H4(+) of E- SATISFACTION
Empathy banking
services
H5(+)
Tangibles
H6(+)
Accessibility

Diagram 2.1. Research Model of the Thesis

Source: Additional editing from SERVPERF Model of Cronin and Taylor's (1992)

27
Explain the variables:
(1) Reliability: measures the ability to perform E-banking services exactly as it is committed
to customers, accuracy and credibility from the first time.
(2) Responsiveness: measures the enthusiasm of the bank staff when it comes to helping
customers and meeting the needs of their customers, providing fast and efficient E-banking
services.
(3) Assurance: measure the level of expertise, style of service, warmly with customers and the
ability to communicate of the bank staff.
(4) Empathy: measures the care to each individual customer.
(5) Tangibles: measures of the infrastructure system, equipment of the bank for E-banking
services, and staff of the bank.
(6) Accessibility: measures to create easy conditions for customers to access E-banking
services such as: shortening the waiting time of customers, places of service and convenient
opening hours for customers.
From the above model, the author presents the research hypotheses following:
Table 2.1. A summary of the research hypotheses
Hypotheses Content
The "Reliability" factor has a positive impact on the quality of E-banking
H1
services at commercial banks in Vietnam.
The "Responsiveness" factor has a positive impact on the quality of E-banking
H2
services in commercial banks in Vietnam.
The "Empathy" factor has a positive impact on the quality of E-banking
H3
services at commercial banks in Vietnam.
The "Assurance" factor has a positive impact on the quality of E-banking
H4
services at commercial banks in Vietnam.
The "Accessibility" factor has a positive impact on the quality of E-banking
H5
services at commercial banks in Vietnam.
The "Tangibles" factor has a positive impact on the quality of E-banking
H6
services at commercial banks in Vietnam.
"Quality of E-banking services" has a positive impact on the "Satisfaction of
H7
customers" at commercial banks in Vietnam.
Source: Author's proposal

2.2. Research process

The research was carried out through the following steps:

28
Step 1: Confirming research objectives: The main research objective of the model is to
assess the impact of the factors on the quality of E-banking services and the quality of E-
banking services to the satisfaction of customers at 5 commercial banks in Vietnam.

Step 2: Building theoretical frameworks for quality of E-banking services have been
designed based on SERVPERF model of Cronin and Taylor (1992) which includes 6 factors
"Reliability", "Responsiveness", "Accessibility", "Assurance", "Empathy "and "Tangibles" to
identify independent variables and the first dependent variable of the model is "Quality of E-
banking services". At the same time, the theoretical framework for the relationship between
quality of E-banking services and customer satisfaction determines the second dependent
variable of the model is "Customer satisfaction".

Step 3: Building and calibrating the scales: The third step is to conduct consultation and
discussion with two target groups: (1) Experts include professors, associate professors,
doctors, researchers, bankers; (2) Individual customers have been using E-banking for 1-3
years at branches and the Headquarter of 5 commercial banks. This discussion will assist the
author in designing the questionnaires and adjusting them accordingly to arrive at a
consistent understanding of the questions in the scale. At the end of the qualitative research
phase at step three, the questionnaire used for the preliminary quantitative study was
finalized.

Step 4: Preliminary quantitative study to evaluate the scale with small sample: The author
plans to survey 50 customers who have been using E-banking for 1-3 years at branches and
headquarter of 5 commercial banks in Hanoi with Cronbach's Alpha and Exploratory Factor
Analysis (EFA) to screen for obscured, overlapping or unreliable content.

Step 5: Finalization of the scale before conducting the formal survey; Because the study uses
Structural Equation Model (SEM) to test the model, the sample size is large enough( n ≥300).

Step 6: Verification of the scale and hypotheses of the study by assertive Confirmatory
Factor Analysis (CFA) to evaluate appropriateness, uniqueness, discriminative value,
convergence value. The research model will be validated using the SEM tool to assess data
suitability with the model and to evaluate the reliability of the model using the Bootstrap
method.

Step 7: Based on the impact of the research variables in the model, present the discussion of
the research implications of the seven hypotheses, thereby proposing solutions to improve
customer satisfaction in service quality E-banking for Vietnamese commercial banks in
general.
29
 Objectives Step 1
The theory of quality of E- Qualitative
Step 2
of the study banking services in the research builds
SERVPERF model the scale

Preliminary The scale Adjust the

Step3
quantitative has been first scale
study adjusted

Step 4

Cronbach Alpha. EFA Official

Step 5
(Exclude variables with (Exclude variables questionnaire
minor Correlation that have a small
coefficient). EFA, check deviation
ược)

SEM CFA
- Check the suitability of the - Exclude variables that
model. have a small CFA weight. Step 6 Collect the
- Test research hypotheses. - Check for unidirectional,
- Re-estimate the model. data
convergent value,
discriminant value.
- Calculate the deviation.
Step 7 - Calculate the coefficient.

REPORT ON
RESULTS

Diagram 2.2. The research process of the Thesis

(Source: Author's Proposal)

2.3. Data sources

2.3.1. Primary data

Primary data was collected from surveys through questionnaires for branches and
headquarter of 5 commercial banks: VCB, Techcombank, ACB, Vietinbank, BIDV. The
research objective of the thesis is to evaluate the satisfaction of customers about E-banking
services, so that the surveyed subjects are individual customers (including internal customers
and external customers of banks) have been using E-banking services at 5 commercial banks.
The questionnaire was based on research concepts, combined with qualitative research,
through consultation with experts, including professors, doctors, researchers, and bankers and
in-depth interviews with 10 individual customers who have been using E-banking services at
30
5 commercial banks. To collect primary data, the author deliver the questionnaires in five
forms: direct at the bank's counter, at the bank's grateful customer conference, at home and
the client's work office or use the form of Email.
2.3.2. Secondary data

Secondary data is collected from annual reports of the State Bank, from Vietnam E-
commerce reports or from the annual reports of 5 commercial banks: BIDV, Vietinbank,
Techcombank, VCB, ACB. In addition, the author also collects from previous researches
related to E-banking services published in and outside the country such as: scientific
researches, monographs, articles banking, internet ...

2.4. Research Methods

2.4.1. Qualitative research methods

Qualitative research is the process of theorizing from individual data to model and
scale. The author has reviewed the literature from inside and outside the country combined
with the use of expert methods to build a draft scale; After that, the author conducted in-depth
interviews with individual customers who have been using E-banking services in 5
commercial banks in Vietnam (VCB, Vietinbank, Techcombank, ACB, BIDV) to build
customer satisfaction evaluation model of E-banking service quality; At the same time, the
formal scale system should be developed to suit the real context of the Vietnamese banks and
serve the purpose of designing questionnaires for use in quantitative research.

Research documents
at home and abroad
Draft scale
Official
Expert method
scale
In-depth interview

Diagram 2.3. Qualitative research process

Source: Sum of the Author

2.4.1.1. Expert Method
The expert method is used by the authors to further clarify the contents of the research,
especially the opinions of the experts who assist the author in designing questionnaires and
proposing solutions. Based on the theoretical reviews and previous studies, the author has
drafted some contents that require expert consultation (Personal opinion on the quality of E-
banking services in Vietnam? Is the SERVPERF model of Cronin and Taylor (1992) suitable
for measuring the quality of E-banking service and assessing customer satisfaction in

31
Vietnam? Are the criteria and scale of the SERVPERF model adequate and are there any
criteria or scales required to match the current status of E-banking services in Vietnam?).
Then, the author discusses directly based on the original sketches with 10 experts including:
professors, doctors, researchers and bankers. Of these, 6 are lecturers or experts with doctoral
or higher degree who are teaching and researching in the banking sector at some major
universities such as National Economics University, Banking Academy, bank staff training
school of Vietinbank and Vietcombank; 4 are managers who hold positions from Branch
director to Head of Business division at Headquarter of 5 commercial banks (List of experts:
Appendix 01). Interviews were conducted at the interviewee's offices. Each interview lasts
10-20 minutes. All experts are very interested in supporting the research and are willing to
provide the recommended information as well as share personal views. All the interviews
were carefully recorded and stored in the computer. Then, the combined results will be
compared with the original theoretical model to draw a qualitative conclusion on the
determinants of the quality of E-banking services identified by the SERVPERF model. All
experts agree with the author in inheriting the SERVPERF model of Cronin and Taylor
(1992) as a basis for determining the quality of E-banking services for 5 commercial banks
(VCB, Vietinbank, Techcombank, ACB, BIDV) in the context of the current banking sector
in Vietnam. In addition to these five factors are "Reliability", "Responsiveness", "Assurance",
"Empathy" and "Tangible" of the SERVPERF model; the authors add the factor of
"Accessibility" to the model of the author because the experts and customers interviewed all
said that besides issues related to human factors, facilities and equipment, the bank should be
easy for customers to access E-banking services as they require high-tech. The results of the
expert method used by the authors serve as the basis for the development of a draft scale for
in-depth interviews.
2.4.1.2. In-depth interview Method
The objective of the in-depth interview method was to adjust the draft scale from the
results of the expert method to complete the official scale used in the quantitative study. The
author intends to conduct in-depth interviews with 10 individual customers who have been
using E-banking for 1-3 years at branches and Headquarter of 5 commercial banks (VCB,
BIDV, Vietinbank, Techcombank, ACB); At the same time, 5 experts were interviewed to
participate in the above phase to adjust the content of the draft scale accordingly (Contents of
in-depth interviews: Appendix 02).
The results of interviews showed that all interviewees basically agreed on the content
of the questions in the draft scales, including 32 scales for 6 factors affecting the quality of E-
banking service and 4 scales measure the quality of E-banking services, 3 scales measure of

32
customer satisfaction on the quality of E-banking services. The results of the qualitative
research conducted through expert method and in-depth interview method are the
questionnaire (Appendix 03).
2.4.2. Quantitative research methods
Quantitative research methods are used to quantify the relationship between variables
in the research model and to test hypotheses obtained from the theory through the use of
statistical analysis tools. Quantitative research is divided into two phases: preliminary
research and formal research.

2.4.2.1. Preliminary quantitative research

After adjusting and refining the draft scales on the basis of qualitative research, scales
continue to be used for the preliminary quantitative research in the form of survey the
opinions of customers through questionnaires. Preliminary quantitative research consists of
the following steps:

Step1: Designing the questionnaire: To complete the research tasks, the design of the
questionnaire should ensure the logic and reasonableness of the questions. For this study, the
content of the questionnaire consists of two parts:

- Part 1: General information about customers: This section contains questions to collect
personal information of customers including: age, sex, education level, income level,
occupation ... and this is the regulatory variable of the research model. This section serves
to describe the groups of customers who have been using E-banking services at 5
commercial banks in Vietnam. These are sensitive information so that the questions are
included in the closed question form to increase the respondent's responsiveness.

- Part 2: Assessment of the quality of E-banking services: Based on the baseline scale of
the SERVPERF model, the content of the questions will focus on surveying the
perception of customers after using E-banking services in 5 commercial banks. To
measure these variables, the author uses the Likert scale of 5 levels from 1- Very disagree
to 5- Strongly agree, of which 3-No comments. The measurement of the 6 factors that
affect the quality of E-banking services and the satisfaction of customers on the quality of
E-banking services are as follows:

(1) “Reliability” consists of 5 scales encoded from TC1 to TC5, based on the survey of
experts and customers through the adjustment of the 5 original scales of the SERVPERF
model. The results of qualitative research show that most experts and customers interviewed
shared the view that "Reliability" is one of the first factors affecting the quality of E-banking

33
services; because when making transactions, most customers want to ensure the safety,
accuracy does not occur any errors. Therefore, in order to measure this factor, the authors
adjusted the original scales of the SERVPERF model in order of priority from 1-5 on the basis
of the frequency of the interviewees selected the most.

Table 2.2. The scales of "Reliability"

Encode Scales
TC1 The bank does not make mistakes in E-banking services from the first
transaction.

TC2 Customers feel confident in the prestige of the bank.

The bank provides E-banking services to customers quickly, accurately and

TC3
without disclosing customer information.

TC4 The bank provides E- banking services on time as announced.

All inquiries and complaints of customers are always resolved quickly and
TC5
satisfactorily.
Source: Additional editing from SERVPERF Model of Cronin and Taylor's (1992)

(2) “Responsiveness” consists of 6 scales encoded from DU1 to DU6 based on the
survey of experts and customers through the adjustment of the 4 original scales of the
SERVPERF model. Qualitative research shows that most of the interviewed experts and
customers share the view that if customer needs are met quickly and promptly, customers will
not have to wait long; and the bank is always willing to help solve any difficulties for
customers will create customer satisfaction. Thus, in order to measure this factor, the author
adjusted the 4 original scales of the SERVPERF model and developed 2 additional scales in
order of priority from 1-6 on the basis of the frequency of the interviewees selected the most.

Table 2.3. The scales of "Responsiveness"

Encode Scales
DU1 The staff of the Bank is always ready to help, support customers.

DU2 The staff of the Bank meet all needs of customers quickly and timely.

DU3 Customers do not spend much time waiting for the transaction.

When the transaction is unsuccessful, the customer's money is refunded in full

DU4
and quickly.

DU5 The procedure for registration and use of E-banking services is simple and

34
 quick.
DU6 The transaction speed of the automated system is very fast.
Source: Additional editing from SERVPERF Model of Cronin and Taylor's (1992)

(3) "Assurance" consists of 5 scales encoded from PV1 to PV5 based on the survey of
experts and customers through the adjustment of the 4 original scales of the SERVPERF
model. The results of qualitative research show that most experts and bank managers said
that: (i) On the staff's side, Assurance is expressed through the following criteria: the bank's
staff must have professional knowledge of E-banking services to be able to confidently
provide the information and can answer any questions of customers; At the same time,
communication skills and effective working skills are required; In addition, it is necessary to
have a courteous attitude, respect customers during the service to create a sense of comfort
and satisfaction for customers. (ii) On the bank's side, Assurance is reflected in the fact that
the bank always sees the customer as the king, always raising the sense of responsibility in the
service of customers, making the customers feel secure and trust the bank. Similarly,
according to the opinions of the interviewed clients, the staffs' assurance is reflected in their
attentive, enthusiastic and professional manner. Thus, in order to measure this factor, the
author adjusted the 4 original scales of the SERVPERF model and developed 1 additional
scale in order of priority from 1-5 on the basis of the frequency of the interviewees selected
the most.

Table 2.4. The scales of "Assurance"

Encode Scales
PV1 The staff of the Bank are knowledgeable enough to answer customer queries.

PV2 Customers feel secure when making E-banking transactions.

PV3 The behavior of the staff of the Bank always create belief for customers.
PV4 The staff of the Bank is always kind, welcoming to customers.
PV5 The staff of the Bank work quickly.
Source: Additional editing from SERVPERF Model of Cronin and Taylor's (1992)

(4) “Empathy” consists of 5 scales encoded from DC1 to DC5 based on the survey of
experts and customers through the adjustment of the 5 original scales of the SERVPERF
model. From the qualitative research results; the experts, the bank managers and customers all
say that in service, the staff must always put themselves in the customer's position to
understand their needs; consulting and providing appropriate services to ensure the benefits
to customers. Even, when the customer encounters difficulties in registering and using E-
35
banking services, the bank's staff must show sympathy, concern for customers and try to solve
the difficult problems for a customer quickly. Therefore, in order to measure this factor, the
author adjusted the 5 original scales of the SERVPERF model in order of priority from 1-5 on
the basis of the frequency of interviewees selected choice.

Table 2.5. The scales of "Empathy”

Encode Scales
DC1 The staff of the Bank always understand the needs of customers.

DC2 The staff of the Bank advise E-banking services in accordance with the needs of
customers.

DC3 The staff of the Bank always pay special attention to individual customers.
DC4 The staff of the Bank always see the interests of customers is their mind.
DC5 The bank has a thoughtful customer care program
Source: Additional editing from SERVPERF Model of Cronin and Taylor's (1992)

(5) “Tangible” consists of 7 scales encoded from PTHH1 to PTHH7 based on the survey
of experts and customers through the adjustment of the 4 original scales of the SERVPERF
model. Qualitative research shows that experts, bank managers and customers all say that:
The quality of E-banking services is also determined by the factors of facilities, equipment,
the appearance of the bank staff through costumes and looks. If the bank has a place of
transaction and spacious facilities displayed at the head office of the bank or transaction
office; Modern equipments, such as computer system for transaction processing, ATM, fixed
telephone, television, air conditioner... will make customers feel comfortable. Even the forms
of transaction documents are beautiful and eye-catching, the appearance of young staff,
dynamic, professional working style ... more and more customer satisfaction. Thus, in order to
measure this factor, the author adjusted the 4 original scales of the SERVPERF model and
developed 3 additional scales in order of priority from 1-7 on the basis of the frequency of the
interviewees selected the most.

Table 2.6. The scales of "Tangible”

Encode Scales
PTHH1 The facilities of the bank are spacious.
PTHH2 The bank has modern equipment system.

PTHH3 The number of ATMs, the POS of the bank are many.

36
 PTHH4 The working style of the Bank staff is professional.
PTHH5 The costumes and appearance of the Bank staff are neat, polite and attractive.
PTHH6 The equipment of the Bank is easy to access when making electronic
transactions.

PTHH7 Website, documents, forms of the Bank are beautiful, attractive.

Source: Additional editing from SERVPERF Model of Cronin and Taylor's (1992)

(6) “Accessibility” consists of 4 scales encoded from TCN1 to TCN4, based on the
opinion of experts, bank managers and customers. Qualitative research shows that experts,
bank managers and customers say that: The bank facilitates easy access to E-banking services
such as convenient transaction location and parking, flexible transaction time, guidance
information, and procedures and flexible payment methods play an important role in
satisfying customer satisfaction when using E-banking services. For example, customers can
not come to a bank with a location that is too far away from their home or workplace or
convenient for parking. Even today, most E-banking transactions are carried out via mobile
phones. If banks do not have detailed information through the browser, it is very difficult for
customers to force customers must go to the bank's office for transaction. From the above
points of view, the author proposes 4 scales in order of from priority 1-4 as follows:

Table 2.7. The scales of "Accessibility”

Encode Scales
TCN1 The location and time of bank transactions are convenient for customers.
TCN2 The transaction process of the bank is simple and fast.

TCN3 Information on using E-banking services is clear and easy to understand.

TCN4 Customers easily access to use E-banking services.

Source: Author's Proposal

(7) “Customer satisfaction”: Customer Satisfaction is a term used to measure the

level of satisfaction of customers' expectations about the types of E-banking services provided
by the bank. In the opinion of experts and bank managers, customers are satisfied when all
their needs, including emotional needs and rational needs, are met with all expectations. For
emotional needs expressed that when customers come to the transaction, customers expect
that the staff of the bank welcomes customers in a friendly way, expressing respect for
customers, treat customers as gods. The surrounding environment must show the luxury,
comfortable feeling for customers with equipment system is full and modern. Especially, the
37
staff of the bank operations should be fast, not to make any mistakes. If the customer
transactions over the telephone must ensure that the processing line of the bank is not
congested and no technical errors. On the rational needs, when customers dealing with banks,
customers want the bank to have many types of E-banking services so that customers have
many choices, but the cost of services must be reasonable, there are many programs
promotion is better ... Therefore, if these needs are met or satisfied then the customer will feel
satisfied and will stick with the bank for a long time. The author proposes three factors of
customer satisfaction on the quality of E-banking services in order of priority from 1-3 and
encoded from HL1 to HL3.

Table 2.8. The scales of "Customer satisfaction”

Encode Scales

HL1 Customers are satisfied with what happens in E-banking transactions with banks.

HL2 Customers are satisfied with the bank they deal.

HL3 Customers will continue to use the bank's E-banking service.

Source: Author's Proposal

Step 2: Select the sample for the survey: Primary data collection is carried out using a
convenient sampling method but must be highly reliable and carried out according to the
following criteria:
 About the object of survey: are individual customers (including internal customers and
external customers of the bank) who have been using E-banking for 1-3 years at branches and
Headquarter of 5 commercial banks: VCB, Techcombank, Vietinbank, BIDV, ACB.
 About the scope of the survey: focus on the Head Office in Hanoi and some major
branches in the Northern provinces and cities such as Hanoi, Hai Phong, Hai Duong, Thai
Nguyen, Vinh Phuc and Hoa Binh.
 About the form of sending questionnaire: The author proceeds in five ways as follows:
+ Distributed directly at transaction counters of banks when customers come to the
procedure of registering for using E-banking services or customers deposit money into their
accounts.
+ Distributed directly at the meeting of loyal customers by the bank held on the occasion
of year-end closing on 5/12/2017.

38
 + Distributed directly to employees working in banks but not in the customer service
department.
+ Distributed directly to the home and work of the customer.
+ Sending E-mails to customers.
 About the size of the sample: The reliability of the information will depend on the size
of the sample, as the sample size increases, the reliability will increase but will increase the
time, resources and costs of the survey. Tabachnick and Fidell (1996, 2013) suggest that for
Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA) to be reliable,
using the Structural Equation Model (SEM), the sample size must be at least 5 times the total
scale of the model and the sample size should be large enough ( n ≥300). Thus, the authors
used the sampling method of Tabachnick and Fidell (1996, 2013) using the formula: n ≥ 8m +
50 (in which: n is the minimum sample size, m is the independent variables of the model).
With a research model of 6 independent variables, the sample size must be at least 98. To
ensure the results of the thesis, the author has issued 400 questionnaires to individual
customers who have been using E-banking services for 1-3 years at 5 commercial banks
(VCB, Techcombank, Vietinbank, BIDV, ACB) and collected 337 questionnaires as valid.
Step 3: Preliminary evaluation of the scale: From the survey results, the scales continue to
be tested for reliability and relevance to market data through the following:
(1) Reliability Analysis: Reliability evaluation was performed using the Cronbach's
Alpha coefficient and Exploratory Factor Analysis (EFA) to screen and eliminate observed
non-standard observations. In which:
 Cronbach's Alpha Coefficient Analysis: Cronbach's Alpha Coefficient Analysis is to
test the reliability of the observed variables in the scale by the internal consistency method
using Cronbach's Alpha coefficient and item-total correlation. The purpose of this test is to
find the absurdity of the answers, such as if someone gave the highest score to answer 1 but to
question 10 remained the same as question 1 but responding backwards and scoring low,
resulting in improperly correlated data. Therefore, in order for the scales to be reliable, the
results must satisfy the following conditions: Cronbach's Alpha reliability coefficient must be
0.7 or higher and item-total correlation coefficient must be large more than 0.3.

 Exploratory Factor Analysis (EFA) is a statistical analysis method used to reduce a set
of many interdependent observation variables into a smaller set of variables (called factors) to
make them more meaningful but it still contains most of the information contained in the
original set (Hair et al.,1998). Exploratory Factor Analysis is performed through three applied
criteria and the choice of variables is: (1) The KMO coefficient (Kaiser-Meyer-Olkin) is used
to evaluate the relevance of the Exploratory Factor Analysis (EFA). According to Hair et al.
39
(1998), the Exploratory Factor Analysis (EFA) is known to be suitable at 0.5 ≤ KMO ≤ 1, and
if KMO <0.5, factor analysis is unlikely to be consistent with the data. (2) Barlett's test
assumes the degree of correlation between the observed zero variables in the overall through
the Sig coefficient. If the Sig<0.05, then the observed variables are correlated in the overall
mean that the test statistically significant. (3) Variance criteria must be greater than 50%.

(2) Test the model: After analyzing Cronbach's Alpha coefficient and Exploratory Factor
Analysis (EFA); The model was tested by Confirmatory Factor Analysis (CFA) to test the fit
of the measurement model with market data. According to the researchers, the use of the CFA
method in scale testing will have many advantages over conventional analytical methods such
as: Correlation Coefficient Analysis, Exploratory Factor Analysis (EFA). The CFA method
allows researchers to test the theoretical structure of scales as the relationship between a
research concept and other concepts without measurement error. In addition, it is possible to
test the convergence value and discriminant value of the scale without using much of the
research as in the traditional method. Therefore, in order for the measurement model to match
the market data, the analysis results should satisfy the following criteria:

 The factor load of the observation variable must be greater than 0.5 and any
observation variable with load factor less than 0.5 will be excluded from the model. If the
load factor after normalization is> 1 or <-1, it is unreasonable to revise that dataset.

 Chi-Square Ratio: χ2/df (CMIN/df) is used to measure the fit of a model in more
detail. According to Hair et al. (1998), 1 <χ2/df <3; Segar and Grover (1993), χ2/df <3;
Kettinger and Lee (1995) distinguish two cases: χ2 /df < 5 (with sample size n> 200) or <3
(when sample size n <200) the model is considered to be good.

 Pvalue ≤ 0,05 (confidence ≥ 95%) is a good fit model, it is unquestionable to reject the
Ho hypothesis (good model hypothesis).
2.4.2.2. Formal quantitative research

From the test results through CFA analysis, the customer satisfaction evaluation
process on the quality of E-banking services at 5 commercial banks (VCB, BIDV,
Techcombank, Vietinbank, ACB) is based on the perception of customers after using E-
banking services. The formal quantitative research is conducted through testing the impact of
6 factors on the quality of E-banking services and the quality of E-banking services to
customer satisfaction was carried out by analysing of the Structural Equation Model (SEM).
The SEM model analysis process consists of the following steps:

40
Step 1: Check the reliability of the scales by Cronbach's Alpha; Estimation of regression
coefficients and Tvalue; Analyzes the CFA on each sub-model and then tests the overall model.

Step 2: Check the fit of the model overall through criteria like CFA analysis, including: Chi-
square test (χ2): represents the overall fit of the whole model at significance level Pv = 0.05
(This is unlikely to be true because χ2 is sensitive to large sample size, It is recommended to
use the index χ2 / df for evaluation); Chi-Square (χ2/df); Other relevant indicators: GFI,
AGFI, CFI, NFI ... value> 0.9 is considered good fit model, if this value is equal to 1 means
perfect model.

Step 3: Check model estimation using the Bootstrap method: This method is used to evaluate
the reliability of estimation coefficients as well as to evaluate the sustainability of the model.
This is a repetitive sampling method that replaces the original pattern in which the original
sample acts as a whole repeat sampling was chosen N times. Estimated results with N times
from n samples are averaged and this value tends to approximate the overall estimate. If the
results of the analysis show that the Bias and standard deviation (Se) are not statistically
significant (Pvalue> 0.05), it can be concluded that the estimates of the factors in the SEM
model is reliability.

41
 CHAPTER 3. RESEARCH RESULTS

3.1. Overview of E-banking services in Vietnam

In Vietnam, the birth and development of E-banking services began with the
introduction of the SWIFT electronic payment system in March 1995. Then, in May 2002, an
inter-bank electronic payment system was developed allowing the development of retail
banking and wholesale banking services. According to statistics of the State Bank of Vietnam,
although commercial banks in Vietnam have access to E-banking services at different times,
as of December 31/2007, 100% of commercial banks in Vietnam supply E-Banking services
in different forms. The following are the statistics of some E-banking services in Vietnam in
the period 2012-2017 as follows:

3.1.1. Card services

In recent years, with the policy of the Government is to promote non-cash payment,
the payment card market has developed strongly. After more than 10 years of development,
the number of cards in Vietnam has grown rapidly and became a popular means of payment.
The number of issuers increased from 20 banks in 2005 to 43 banks in 2017 with about 500
brand names including domestic debit cards, international debit cards, credit cards and
prepaid cards.

Unit: Million cards

100 89.9
81.2
80 67.3 70.6

60 54.7
47.2
40

20

0
2012 2013 2014 2015 2016 2017

Chart 3.1. Number of cards issued in the period 2012 – 2017

Source: Annual Report of the State Bank of Vietnam

If in 2012, the whole market has 47.2 million types of cards (domestic debit cards,
international debit cards, international credit cards, prepaid cards), by the end of 2017 there
will be 43 organizations with 89.9 million cards were issued, including nearly 80 million debit
cards, more than 6 million credit cards and 3.9 million prepaid cards. The card market has

42
grown rapidly over the years, not only the card issuers but also a number of shopping centers,
co-branded card issuance to reduce the price, promotion to customers pay by card.

Unit: Machine

250

200

150 ATM
100 POS

50

0
2012 2013 2014 2015 2016 2017

Chart 3.2. Number of ATMs and POS machines in the period 2012 – 2017
Source: Annual Report of the State Bank of Vietnam

The infrastructure for card payment has also improved significantly; In 2012, Vietnam
has nearly 14.000 ATMs installed nationwide and about 90.000 POS machines are in
operation by the end of the year 2017, the bank system has installed 31.340 ATMs and
221.030 POS machines to facilitate the development of non-cash payments. With the launch
of card alliances, the implementation of the card transactions of customers became extremely
favorable. Especially, since the end of December 24 2014, after the two biggest card alliances
Banknetvn and Smartlink, officially merged with the State Bank of Vietnam as the largest
shareholder, the card market is facing strong growth.

3.1.2. InternetBanking

Launched in 2004, only three banks provide online banking services, by 2012 there are
46 Internet Banking service providers, accounting for 90% of the total 50 active banks in
Vietnam. By the end of 2017, 100% of banks will provide Internet Banking. Considering the
scale, although the number of commercial banks has decreased from 50 banks in 2015 to 43
banks in 2017 because commercial banks perform mergers and acquisitions under the
restructuring plan of the State Bank, but consider In terms of quality, the number of
commercial banks deploying Internetbanking in Vietnam has so far reached 100%. With
Internetbanking services, customers can access account information, view account balances,
look up accounts on time, or look up information on credit and debit cards conveniently and
safely.

43
 Unit: Bank

52
50 50
48 48
46 46 46
45
44
43
42
40
38
2012 2013 2014 2015 2016 2017

Chart 3.3. Number of banks deploying Internetbanking service

Source: Vietnam E-commerce report 2017

Currently, with the 4.0 technology to increase the number of customers using Internet
banking services, the commercial banks in Vietnam have implemented solutions to ensure
security and confidentiality for customers when performing transactions such as granting to
customers passwords, static passwords, OTP authentication via SMS or OTP Token, E-mail,
smartcard, RSA ...

3.1.3. MobileBanking

Launched in 2010, after Internetbanking about 6 years, now Mobile Banking is being
deployed 32 banks (while Internet banking service is 43 banks) with many new convenient
and simple for customers to trade. According to data of Smartlink Card Service Company by
the end of 2017, the market now has more than 4 million customers using MobileBanking
service with 16-17 million transactions are carried out monthly, total value up to trillion per
month. The average annual growth rate of this service is about 20% -30% per month.

In the world, Mobile Banking is really booming. According to Juniper Research, the
number of people using this service globally will increase more than 2 times, from the current
800 million to 1.75 billion users by 2019. The main reason for growth is the increasing use of
smartphones and mobile payment methods. In Vietnam, by the end of 2017, Vietnam had
about 148.5 million telephone subscribers, of which mobile subscribers accounted for 93.3%,
equivalent to 138.5 million subscribers. The number of 3G and 4G subscribers is more than
20 million and Vietnam is currently ranked in the top 10 countries globally for Smartphone
consumption and third in South Asia in terms of new smartphone subscribers. Data on 3G, 4G
and Smartphone subscriber growth show that the trend for mobile services is clear, including
Mobile Banking. However, Mobile Banking service is offered in Vietnam market is often
considered a miniature version of Internet Banking. The biggest disadvantage of the Mobile
44
Banking service is that the service features are often very simple and almost only the most
basic services such as money transfer, phone recharge, balance inquiry. If you want to see
transaction details, just look at the last 5 to 10 transactions. In addition, customers must be
familiar with remembering which features are only available on Internet Banking and Mobile
Banking is not and it is easy to accept the inconvenience when it is common that the market
is. Experts say that transaction convenience seems to be less focused as the Mobile Banking
interface is too small to display information in full or enhanced form. It's easier to put a
product on Internet Banking because of its large interface, easy to set up and display, and that
is not thoroughly researched to do on Mobile Banking. The cause of these problems is that the
development of Mobile Banking services in banks is still in the early stages, banks are still
choosing the right path to develop the best service. Only a few banks have synchronized
between Mobile Banking and Internet Banking to be able to provide more services and
convenience to customers. However, the statistics show that mobile banking services although
developed later, have a remarkable growth rate. The rate of customers using the service after
registration on Mobile Banking is higher than on Internet banking. The rate of mobile banking
customers is over 50%, nearly twice as high as Internet Banking. With 20% of Vietnam's
population currently using Smartphones, Mobile Banking will become a viable electronic
banking channel in the near future.

3.1.4. Electronic Wallet

Established in Vietnam in 2008 in the context of E-commerce market needs suitable

payment tools, E-wallet is expected to help buyers and sellers connect quickly together. In the
period 2012-2017, the online payment integration website increased more than 30 times,
including the presence of Electronic wallet . But after 5 years of development, Electronic
wallets are still struggling to find a place in the market. By the end of 2017, the country has
over 2.14 million electronic wallets, total transactions in the year reached 33.470 billion.
Compared with the size of the non-cash payment market in Vietnam, this figure is very
modest, as the card market alone totaled 2.1 trillion VND.

Table 3.1. Organizations providing E-wallet services in Vietnam as of 31/12/2017

Order The company provides E-wallet service Name of payment

solution
1 Viet Phu Payment Service Joint Stock Company (MobiVí) MobiVí
2 Online Community Service Joint Stock Company (VietUnion) Payoo
3 Vietnam Payment Solutions Joint Stock Company (VNPay) VnMart
4 Smartlink Card Service Joint Stock Company (Smartlink) Smartlink

45
 5 Vietnam Payment Technology Joint Stock Company (VinaPay) Vcash
6 Hoa Binh Software Solution Joint Stock Company (PeaceSoft) Money
7 Online Mobile Service Joint Stock Company (M-Service) M-Service
8 VNPT Electronic Payment Joint Stock Company (VNPT EPAY) VNPT EPAY
9 Electrical and Telecom Payment Solution Joint Stock Company E-Dong
(ECPay)
Source: Vietnam E-commerce report 2017

Electronic wallets are also challenging to develop due to the lack of E-wallet application
due in part because E-commerce has not really developed strongly in Vietnam and will take many
years to consumers get used to the use of Electronic wallets and the habit of using cash is also
common. In recent times, the form of payment through the new card is used more when agencies
and businesses pay or pay wages via bank transfer or Internet Banking. To create consumer
habits requires a certain process, in addition to the cause of the market, enterprises themselves
provide E-wallet is not mastered technology. Besides large electronic wallet providers such as
Ngan Luong, Momo ..., many of the supplying units are still in the process of trying to find their
way, not to take advantage of the resources to expand the broadcasting area. It has not proven to
consumers that convenience, superiority of electronic wallet compared with other forms of
payment when shopping with low value.

3.2. Situation of providing E-banking services at 5 commercial banks in Vietnam

3.2.1. E-Banking service of Vietcombank

Vietcombank is now providing its customers with E-banking services through the
Internet, fixed-line telephone, mobile phones and payment of public service bills. Currently,
Vietcombank E-banking services are provided to customers such as:
PhoneBanking: Customers call the phone number pre-designated by Vietcombank
and pre-programmed will be provided with information about exchange rates, interest rates,
account balance information, real estate and market situation, information on new policies,
products and services.
MobileBanking: Since November 20, 2006; Vietcombank has officially launched
SMS Banking service. For MobileBanking (or SMS Banking) service, customers can send
SMS to their predefined (8170) via mobile phone to ask for their account information at any
time. Conversely, when a transaction changes the account balance, the customer will receive a
new balance message via Mobile phone.

46
 InternetBanking: VCB-iBanking service is built to fulfill the commitment to bring
Vietcombank to customers everywhere. Vietcombank's customers can directly access
information about exchange rates, fee schedules, credit card limit queries, account balance
inquiries, statements, auxiliary ledger, account transfer, transfer ...
HomeBanking: VCB-Money service is the main service in Vietcombank's E-banking
system.Vietcombank's VCB-Money program is built on a modern technology platform to
assist and enable customers to conduct banking transactions through their customers' PCs
without having to go directly to the bank. Customers are financial institutions or economic
organizations with payment deposit accounts at Vietcombank.
VCB-eTopup: is a service to help customers refill their mobile phones at any time,
anywhere from their mobile phones or from Vietcombank ATMs nationwide.
VCB-eTour: is the most modern and convenient online payment service for the first
time in Vietnam . Up to now, in general, many commercial banks in Vietnam have paid
attention to developing E-banking services. Besides the two leading banks, ACB and
Vietcombank, many other banks have boldly invested in the application of information
technology, modernization of banking technology, development of E-banking services.

3.2.2. E-Banking service of Techcombank

Techcombank has installed and deployed Globus software, a modern banking
technology solution developed by Temenos Holding NV in its branches. The products are and
will be set up as: Overdraft, Fast Access payment card. In addition, Techcombank is
providing two electronic banking services: Telebank and Homebanking. Telebank is a remote
online payment service system that allows customers with a deposit account at Techcombank
to make electronic payments to a bank right at their workplace. Telebank is highly secure
because it uses the unique random-code generator called Microsoft's Certificate, which is
designed as a software application installed on the client's computer. This software connects
to the bank via dial-up connection, works in both modes, offline mode allows viewing
information for browsing before switching to online mode for transferring. omebanking
allows customers to access the bank through 4 products:
Fast Access: is a system for querying account balances and account transactions
conducted through Techcombank's website. The banking system will list all of the account
transactions that customers have made since the time they sign up for Homebanking.
Mail Access: is a service to track and send account information automatically by
email. Each time a transaction changes the account balance, customers who register to use this
service will receive the account information sent by the bank via Email.

47
 Mobile Access: is a system for providing balance and transaction information of
customer accounts via mobile phones via SMS. When the customer's account is transacted,
the system will automatically send a message about the arising transaction and current balance
to the customer's mobile phone. In addition, customers who need information query can also
send messages to the central bank to ask for information about exchange rates, interest rates,
account balance ...
Voice Access (referred to as Vocaly): This is an automated information exchange
service that allows customers to call 19001590 will be answered information related to
exchange rates, interest rates, account balance, the latest deals ...

3.2.3. E-Banking service of ACB

ACB is a leading bank in the provision of E- banking services. ACB's E-banking
services are favored and used by customers. Include:
InternetBanking: This is a service that the Bank promotes and provides information
to customers through the website developed and updated regularly. Access to the website
http://www.acb.com.vn, customers can receive information related to the operation of the
Bank, information about new products and services. Customers can also refer to the service
fee, interest rates, exchange rates, refer to the instructions when you want to register, use the
service.
PhoneBanking: This is a basic information query service provided by ACB to its
customers through phones. Through this service, customers can check the balance of their
payment deposit account; hear the latest 5 transactions; Check information on interest rates,
exchange rates, securities; Requesting the Bank to fax transaction listings, savings interest
rates, exchange rates, securities prices, listing securities transactions…
MobileBanking: This is the distribution channel of ACB's e-banking service which
allows customers (with or without account at ACB) to use the mobile phone in the form
stipulated by the Bank to the required 997 switchboard. The bank provides the following
services: payment deposit information, card information, exchange rate information, securities
... and payment of invoices, transfer of money from card account through cell phone
messenger; Transfer money from deposit account through payment cards such as: Visa
Electron, Visa Classic, Visa Gold, Visa Business, Visa Depit, Master Electronic, MasterCard
Standard, Gold MasterCard, MasterCard Dynamic, Citimart, Saigon Tourist, Mai Linh, Ecard.
HomeBanking: This is the distribution channel of ACB's E-banking service allowing
customers to make payment, transfer, money transfer and foreign currency conversion
transactions at any time and anywhere without the need of banks. Customers connect to the

48
HomeBanking system or visit the website http://homebanking.acb.com.vn of ACB to carry
out transactions.
Call center (Switchboard 247): This is a centralized service with a central 24/7 call
center. When the customer requests to use some services of the Bank, they will call the
telephone number of the operator 08.8247247 to orders the payment ; transfer money from
card account to deposit account and vice versa; provide information on exchange rates,
deposit interest rates, fee schedule; provide account balance; answering complaints and
complaints during the use of cards; Advising and introducing telephone services of the Bank,
transferring money ...

3.2.4. E-Banking service of BIDV

BIDV's E- banking services include: BIDV Online, BIDV Business Online and BIDV
Mobile. Currently, customers can choose one of two authentication methods: Hardware Token
and SMS Token are applied for both BIDV Online and BIDV Mobile. BIDV Business Online
can only use Hardware Token authentication method.
BIDV Mobile offers two types of services: BIDV Mobile application and SMS
Banking. In which BIDV Mobile application is software installed on the phone allows
customers to make transactions: Transfer money in BIDV system; transfer money outside the
BIDV system; Bill payment in various forms: airfare payment, insurance, prepaid recharge;
Verification of customer accounts: payment account, savings account, loan account, overdraft
account; credit card information; Various bank related information such as branch and ATM
addresses, POS, exchange rates, interest rates, working hours and other useful information.
SMS Banking is a service for sending or receiving SMS messages via mobile phones,
allowing customers to: Account payment, savings account, loan account, overdraft account,
credit card; exchange rate, ATM address ...

3.2.5. E-Banking service of Vietinbank

Like other commercial banks, Vietinbank now provides customers with E-banking
services via the Internet, fixed lines and mobile phones such as:
Internetbanking: Customers transactions with Vietinbank via internet. Customers
only need a computer connected to the Internet and access code provided by Vietinbank to
access the website: www.vietinbank.vn is able to make transactions such as payment of
electricity bills, television cable; transfer personal money, transfer money from your payment
account; look up information about interest rates, exchange rates or securities; Check your
account balance ...

49
 SMS Banking: Customers transactions with Vietinbank via SMS. Customers only
need to compose SMS messages according to the prescribed syntax and send to the
Vietinbank 8149 operator will receive the information as requested. In particular, Vietinbank
also provides VnTopup service which allows E-Partner card holders to deduct money from
their ATM account to recharge directly to their prepaid mobile account without using scratch
card or code to recharge. The refill is made simple, safe and fast where everytime only a
message with the specified syntax and sent to 8149 is only seconds after the phone account of
the customer will be recharged under request. In addition, VnTopup service can be used to
recharge the other prepaid mobile subscribers of various telecommunication networks such as
Vinaphone, Mobifone, Viettel, Beeline, S-fone, EVNTelecom ...
PhoneBanking: This is a basic information inquiry service provided by Vietinbank to
its customers via telephone. Through this service, customers can check the balance of their
payment deposit account; hear the latest 5 transactions; Check information on interest rates,
exchange rates, securities; Requesting the Bank to fax transaction listings, savings interest
rates, exchange rates, securities prices, listing securities transactions…
Vietinbank at home for individual customers: Vietinbank cooperated with Onepay to
deploy online payment service by E-partner card. With this service, customers can use the
money in their E-partner card account to buy goods or pay at E-commerce websites with
online payment links with Vietinbank..
VietinBank at home for corporate customers with the purpose of providing a
summary and details of the account of payment at Vietinbank business; Providing and
exporting historical transaction data of enterprises' payment deposit accounts at Vietinbank;
Conducting electronic money transfer; Lookup or look up transactions.…

3.3. Research results

To assess the influence of factors on the quality of E-banking services and the
satisfaction of customers when using E-banking services in five commercial banks (VCB,
Techcombank, Vietinbank, BIDV, ACB); The author conducted a survey of 400 individual
customers who have been using E-banking for 1-3 years at Head Office in Hanoi and some
large branches in Northern provinces and cities: Hanoi, Hai Phong, Hai Duong, Thai Nguyen,
Vinh Phuc. Of these, 367 respondents answered the questionnaire and collected 337 valid
votes, which accounted for 84.3% of the total votes. As follows:

50
 Table 3.2. Sample size and survey results
Order Banks Number of votes Number of Number of Ratio %
issued votes collected valid votes
(1) (2) (3) (4) (5) (6) = (5)/(3)
1 Vietcombank 80 76 68 85
2 Vietinbank 80 78 72 90
3 BIDV 80 73 66 82,5
4 Techcombank 80 75 70 87,5
5 ACB 80 65 61 76,3
Total 400 367 337 84,3

(Source: Survey results of the author)

3.3.1. Results of demographic analysis

Table 3.3. Statistics of demographic characteristics of the surveyed subjects

Gender
Frequency Percent
Male 191 56.7
Valid
Female 146 43.3
Age
Frequency Percent
Under 20 years old 66 19.6
From 21 to 30 years old 126 37.4
From 31 to 40 years old 77 22.8
Valid
From 41 to 50 years old 39 11.6
From 51 to 60 years old 20 5.9
Over 60 years old 9 2.7
Education
Frequency Percent
Under High School 49 14.5
High School 60 17.8
Valid Intermediate level 96 28.5
College, university 106 31.5
Master, Doctor 26 7.7
Job
Frequency Percent
Managers 40 11.9
Officer 49 14.5
Valid
Housewife 61 18.1
Doctor 41 12.2

51
 Worker 28 8.3
Engineer 32 9.5
Teacher 35 10.4
Student 37 11
Other jobs 14 4.2
Income
Frequency Percent
Under 5 million VND 15 4.5
From 5 to 10 million VND 74 22
From 11 to 15 million VND 80 23.7
From 16 to 20 million VND 65 19.3
Valid From 21 to 25 million VND 32 9.5
From 26 to 30 million VND 37 11
From 31 to 35 million VND 14 4.2
From 36 to 40 million VND 11 3.3
Over 41 million VND 9 2.7
Total 337 100
Source: Research results of the Author
The analysis shows that the proportion of male clients is higher than females; Age
group from 21 to 30 years old and from 31 to 40 years old is more with the rates were 37.4%
and 22.8%. Intermediate, college and university levels accounted for a high proportion of the
survey sample, with a total of 60%. The most popular occupations were housewives with
18.1% and officers with 14.5%. The average income is from 5 to10 million VND (22%) and
the income from 11to15 million VND (23.7%), the average income is from 16 to 20 million
VND with the rate of 19.3 %.

3.3.2. Results of measuring the scales

Table 3.4. Summary of measurement results

Corrected Item-Total Cronbach's Alpha if Item
Item
Correlation Deleted
Reliability, Cronbach's Alpha = 0.904
TC1 0.728 0.889
TC2 0.740 0.887
TC3 0.776 0.879
TC4 0.728 0.889
TC5 0.829 0.867
Responsiveness, Cronbach's Alpha = 0.859
DU1 0.688 0.829
DU2 0.602 0.844
DU3 0.675 0.831
52
 DU4 0.653 0.835
DU5 0.608 0.844
DU6 0.676 0.831
Assurance, Cronbach's Alpha = 0.885
PV1 0.680 0.870
PV2 0.687 0.869
PV3 0.766 0.850
PV4 0.679 0.871
PV5 0.807 0.840
Empathy, Cronbach's Alpha = 0.848
DC1 0.604 0.831
DC2 0.591 0.834
DC3 0.688 0.809
DC4 0.645 0.820
DC5 0.759 0.788
Tangible, Cronbach's Alpha = 0.918
PTHH1 0.798 0.900
PTHH2 0.689 0.911
PTHH3 0.766 0.903
PTHH4 0.692 0.911
PTHH5 0.733 0.907
PTHH6 0.777 0.902
PTHH7 0.765 0.903
Accessibility, Cronbach's Alpha = 0.862
TCN1 0.707 0.825
TCN2 0.648 0.848
TCN3 0.660 0.844
TCN4 0.826 0.773
Quality of E-banking services, Cronbach's Alpha = 0.835
CLDV1 0.699 0.776
CLDV2 0.677 0.786
CLDV3 0.622 0.810
CLDV4 0.662 0.792
Customer satisfaction, Cronbach's Alpha = 0.745
HL1 0.634 0.591
HL2 0.518 0.722
HL3 0.569 0.666
Source: Research results of the Author
The criteria used to exclude the observed variables include: Item-Total Correlation
with coefficients less than 0.3 will be discarded, variables with coefficients greater than the
53
value of the Cronbach's Alpha coefficient will also be removed. Analytical results show that
no scale of observation variables was removed to increase the reliability of the scale. The
Cronbach's Alpha coefficients of the scales reach a high of above 0.7, so the data is
guaranteed to be reliable, observable variables are good for the scale. Observed variables will
be required for further analysis.

3.3.3. Results of the Exploratory Factor Analysis (EFA)

The thesis uses the Exploratory Factor Analysis (EFA), Promax Rotation Matrix and
Principal Axis Factoring. The analysis results are as follows:

Table 3.5. Results of the Exploratory Factor Analysis (EFA)

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.826

Approx. Chi-Square 5963.146

Bartlett's Test of
df 496
Sphericity
Sig. 0.000
Eigenvalues 2.661
Variance 59.591
Source: Research results of the Author
The results of the Exploratory Factor Analysis show that: the KMO coefficient was
0.826 greater than 0.6, the Bartlett's Test for Sig value was 0.000, indicating that the factor
analysis was to ensure reliability.
The variance coefficient is 59,591%> 50% indicates that the factors derived from the
analysis can account for 59,591% of the variation in the initial survey data. Eigenvalues
represent the convergence of the analysis, and this value for the sixth factor is 2.661> 1
indicating the high convergence of the 6 factors derived from the factor analysis. These
factors have the same observed variables as the observed variables from the theory.

3.3.4. The results of Confirmatory Factor Analysis (CFA)

After analyzing the exploratory factor (EFA) for clustering of significant factors as
well as eliminating observed variables if unsatisfactory, the scales are given the observational
variables with each step, then the Confirmatory Factor Analysis (CFA) will confirm once
again the outcome of the EFA is reliable. In this study, the author conducted the CFA analysis
with all variables in the research model, the results of the analysis are as follows::

54
 Diagram 3.1. Results of CFA analysis
Source: Research results of the Author
Based on the results of the analysis shown in Figure 3.1: Chi-square/df = 1.514 (< 2),
TLI = 0.946, CFI = 0.951 (> 0.9), RMSEA = 0.033(< 0.05), NFI = 0.868 > 0.8. These values
indicate that the model is suitable for market data.

Table 3.6. Correlation of observed variables with whole scale

Parameter Estimate SE CR P-Values

TC5 <--- T_C 0.88 0.026 4.624 0.000

TC4 <--- T_C 0.77 0.035 6.598 0.000

55
TC3 <--- T_C 0.834 0.030 5.507 0.000

TC2 <--- T_C 0.789 0.034 6.286 0.000

TC1 <--- T_C 0.773 0.035 6.549 0.000

DU6 <--- D_U 0.744 0.037 7.012 0.000

DU5 <--- D_U 0.666 0.041 8.195 0.000

DU4 <--- D_U 0.706 0.039 7.598 0.000

DU3 <--- D_U 0.74 0.037 7.075 0.000

DU2 <--- D_U 0.655 0.041 8.357 0.000

DU1 <--- D_U 0.758 0.036 6.791 0.000

DC5 <--- D_C 0.831 0.030 5.561 0.000

DC4 <--- D_C 0.713 0.038 7.492 0.000

DC3 <--- D_C 0.76 0.036 6.759 0.000

DC2 <--- D_C 0.67 0.041 8.136 0.000
DC1 <--- D_C 0.673 0.040 8.092 0.000

PV5 <--- P_V 0.868 0.027 4.865 0.000

PV4 <--- P_V 0.741 0.037 7.059 0.000

PV3 <--- P_V 0.813 0.032 5.878 0.000

PV2 <--- P_V 0.737 0.037 7.122 0.000

PV1 <--- P_V 0.746 0.036 6.981 0.000

PTHH7 <--- PT_HH 0.78 0.034 6.435 0.000

PTHH6 <--- PT_HH 0.812 0.032 5.896 0.000

PTHH5 <--- PT_HH 0.787 0.034 6.319 0.000

PTHH4 <--- PT_HH 0.716 0.038 7.446 0.000

PTHH3 <--- PT_HH 0.816 0.032 5.826 0.000

PTHH2 <--- PT_HH 0.722 0.038 7.354 0.000

PTHH1 <--- PT_HH 0.847 0.029 5.268 0.000

TCN4 <--- T_C_N 0.934 0.020 3.381 0.000

56
 TCN3 <--- T_C_N 0.735 0.037 7.153 0.000
TCN2 <--- T_C_N 0.671 0.041 8.121 0.000
TCN1 <--- T_C_N 0.792 0.033 6.236 0.000
CLDV1 <--- CL_DV 0.756 0.036 6.823 0.000
CLDV2 <--- CL_DV 0.768 0.035 6.630 0.000
CLDV3 <--- CL_DV 0.709 0.039 7.553 0.000
CLDV4 <--- CL_DV 0.758 0.036 6.791 0.000
HL1 <--- H_L 0.781 0.034 6.418 0.000
HL2 <--- H_L 0.664 0.041 8.225 0.000
HL3 <--- H_L 0.679 0.040 8.003 0.000
Source: Research results of the Author
It can be seen that the correlation between the observation variables and the overall
scale that the variables represent are statistically significant, with P coefficients equal to
0.000. This confirms the observed variables in the scale to ensure the ability to represent that
scale.
Considering the normalization coefficients of each observation variable in the scale, the
observed variables have coefficients after normalization reaching values greater than 0.5, so
that no observation variable is removed from the scale. There is no scale showing the
correlation between measurement errors, so unipolarity is guaranteed. Thus, CFA analysis
shows that, as a consequence of being consistent with market data, the scales ensure
monotonicity and the distinction between performance observers in the same scale. However,
to confirm that the observed variables are reliable for data, we need to test for Cronbach's
Alpha reliability, variance and confidentiality. The composite results for the scales are as
follows:
Table 3.7. Reliability assessment
Scales Cronbach's Alpha Confidentiality Variance
Reliability 0.904 0.905 0.657
Responsiveness 0.859 0.861 0.508
Empathy 0.848 0.851 0.536
Assurance 0.885 0.887 0.613
Tangible 0.918 0.918 0.615
Accessibility 0.862 0.867 0.623
Quality of E-banking services 0.835 0.835 0.560
Customer satisfaction 0.745 0.752 0.504
Source: Research results of the Author
The results of the analysis show that the scales assure that the value of confidentiality
is greater than 0.5, the variance is greater than 50% and the Cronbach's Alpha coefficient is

57
greater than 0.6. Thus, the results of the CFA analysis confirm that the factors given in the
analysis are well represented by the observed variables in those factors.

3.3.5. The results of the test by the Structural Equation Model (SEM)
With the above results, the author analyzes the Structural Equation Model (SEM) to
give an assessment of the level of impact of the factors through the SEM model. The analysis
results are presented below:

Diagram 3.2. The results of the SEM model test

Source: Research results of the Author

58
 The results show that, Chi-square/df = 1.156 (< 2), TLI = 0,945, CFI = 0,950 (> 0,9),
RMSEA = 0,039 (< 0,05), NFI=0.867 > 0.8, These values show that the model is fit with
market data.
Table 3.8. Unnormalized coefficients of the SEM model
Parameter Estimate S.E. C.R. P
CL_DV <--- T_C .229 .020 11.621 ***
CL_DV <--- D_U .227 .029 7.943 ***
CL_DV <--- P_V .173 .021 8.257 ***
CL_DV <--- D_C .175 .022 8.068 ***
CL_DV <--- PT_HH .171 .022 7.794 ***
CL_DV <--- T_C_N .096 .016 5.957 ***
H_L <--- CL_DV .744 .074 10.007 ***
Source: Research results of the Author

Table 3.9. Normalized coefficients of the SEM model

Standardized Regression Weights Estimate

CL_DV <--- T_C .498
CL_DV <--- D_U .328
CL_DV <--- P_V .314
CL_DV <--- D_C .321
CL_DV <--- PT_HH .301
CL_DV <--- T_C_N .211
H_L <--- CL_DV .679
Squared Multiple Correlations Estimate
CL_DV .806
H_L .461
Source: Research results of the Author
The analysis results shown in Table 3.9 show that, all 6 factors have a positive impact
on the quality of E-banking, "Reliability" has the highest coefficient of 0.498, followed by the
"Responsiveness" coefficient of 0.328, the "Empathy" has the third highest level of impact,
with a coefficient of 0.321, the "Assurance" of the fourth factor with a factor of 0.314, fifth is
"Tangible"with a coefficient of 0.301 and a minimum of "Accessibility" with a coefficient of
0.211. These variables account for 80.06% of the variation in the quality of E-banking
services. The correlation between the quality of E-banking services and customer satisfaction
is also evident with the 0.679 coefficient, which indicates that if the quality of E-banking
services is increased by one unit, satisfaction of customers will increase to 0.679. The R2
coefficient of 0.461 indicates that variation in the quality of E-banking services explains
46.1% variability of the customer satisfaction factor.

59
3.3.6. The results of test by the Bootstrap method
Although the results of the SEM analysis show that the estimated coefficients of the
model are statistically significant, but to evaluate the reliability of the estimation coefficients
as well as to evaluate the sustainability of model; The thesis continues to be tested by the
Bootstrap method through the AMOS 22.0 software tool. Bootstrap is an alternative method
of sampling in which the prototype plays the role of a crowd. Using this method for cross-
evaluation between the two samples, including the initial sample and the Boostrap sample,
replaced the repetitive study (Schumacker & Lomax, 2004); Cross-evaluation helps to test the
differences in the pattern between the two sample groups. The Boostrap method is performed
with the repetition number N times. Estimates from the sample N are averaged and this value
tends to approximate the overall estimate. The difference between the estimated mean by
Bootstrap and the model estimation with the smaller sample allows us to conclude that model
estimates are reliable. The Boostrap method is used to test the model estimates in the final
model with a repetition of N = 500.
Estimated results by the Bootstrap method with a sample size of 500 show the
following results:

Table 3.10. Estimated results with sample size 500

Parameter SE SE-SE Mean Bias SE-Bias

CL_DV <--- T_C .017 .001 .229 .000 .001
CL_DV <--- D_U .034 .001 .228 .002 .002
CL_DV <--- P_V .025 .001 .173 .001 .001
CL_DV <--- D_C .021 .001 .174 -.001 .001
CL_DV <--- PT_HH .022 .001 .172 .001 .001
CL_DV <--- T_C_N .022 .001 .095 -.002 .001
H_L <--- CL_DV .081 .003 .739 -.004 .004
Source: Research results of the Author
With the repeated sampling in this study selected as N = 500 times from n = 337
samples, the estimated results from 500 samples are averaged over the deviations shown in
the table above, showing the value Estimates tend to be close to the overall estimate; Bias and
Se-Bias were not statistically significan (PValue > 0,05). Thus, it can be concluded that the
estimates of the factors in the SEM model can be reliably determined. In other words, the
model conclusions are consistent with the large sample size of 500 survey samples.

60
 CHAPTER 4. CONCLUSIONS AND RECOMMENDATIONS

4.1. Conclusions
With the results of the analysis above, the original hypotheses presented in the study
have been shown to be statistically significant and acceptable.
Table 4.1. Summary the results of the research hypothesis testing
Hypotheses Content Coefficient Conclusion
The "Reliability" factor has a positive impact on s

H1 the quality of E-banking services at 5 commercial 0.498 Accepted

banks in Vietnam.
The "Responsiveness" factor has a positive impact

H2 on the quality of E-banking services at 5 0.328 Accepted

commercial banks in Vietnam.
The "Empathy" factor has a positive impact on the
quality of E-banking services at 5 commercial 0.321 Accepted
H3
banks in Vietnam.
The "Assurance" factor has a positive impact on the

H4 quality of E-banking services at 5 commercial banks 0.314 Accepted

in Vietnam.
The "Accessibility" factor has a positive impact on
the quality of E-banking services at 5 commercial 0.211 Accepted
H5
banks in Vietnam.
The "Tangibles" factor has a positive impact on the

H6 quality of E-banking services at 5 commercial 0.301 Accepted

banks in Vietnam.
The "Quality of E-banking services" has a positive

H7 impact on the “Satisfaction of customers” at 5 0.679 Accepted

commercial banks in Vietnam.
Source: Research results of the Author
In summary, all 6 factors have a positive impact on the quality of E-banking services:
Reliability, Empathy, Responsiveness, Tangible, Assurance and Accessibility. In particular,
the " Reliability" factor affects the "Quality of E-banking services" at the highest level with
0.498. This shows that most customers are confident in the quality of E-banking services
provided by five commercial banks (VCB, ACB, Vietinbank, Techcombank, BIDV). These 5
commercial banks are both large scale and prestigious in Vietnam and also the pioneer banks

61
in providing electronic banking services in Vietnam. Followed by three factors:
"Responsiveness," "Empathy," and "Assurance " with nearly the same coefficient, are greater
than 0.3. The results show that the staffs of 5 commercial banks show professional skills and
professionalism, serve customers with thoughtfulness and a strong influence on the quality of
E-banking services that impact on customer satisfaction. It is clear that bank employees are in
direct contact with the customer, so the good impression that the employee brings will have
profound impact on the customer and vice versa. The "Tangibles" factor was 0.301 and the
smallest factor with 0.211 was "Accessibility".This factor has the lowest impact because
Vietnamese people still have habits of using cash in circulation, many people especially the
elderly and people in the provinces, they have no conditions to access modern banking
services. Many people think that these services take time because they have to check in at the
bank and it is difficult to understand, even they think that the transfer is not safe by their own
money to pay directly to other people … In addition, the results of the analysis also showed
that “Quality of E-banking services” is positively correlated with “Satisfaction of customers
using E-banking services” in 5 commercial banks in Vietnam (VCB, ACB, Vietinbank,
Techcombank, BIDV).

4.2. Recommendations
Based on the results of customer satisfaction research on the quality of E-banking
services in 5 commercial banks in Vietnam (VCB, Vietinbank, BIDV, Techcombank, ACB),
the author made some suggestions to improve quality of E-banking services; thereby
enhancing the satisfaction of customers on the E-banking services for 5 commercial banks in
particular and commercial banks in Vietnam as follows:

4.2.1. Strengthening the investment in the electronic infrastructure

The success or failure of E-banking is highly dependent on infrastructure. E-banking is
an area that requires modern technology, so the most important competitive element is the
infrastructure. Thus, the author proposes:

Firstly, In the coming time, to continue developing E-banking services, banks need to
continue to invest heavily in electronic infrastructure, but they need to change their
investment structure more aggressively , focusing more on training because the human factor
is still the key to the success of the business.

Secondly, For customers to know and understand the benefits of E-banking, banks also
need to invest actively in advertising and dissemination in various forms to attract attention of
cutomer.

62
 Thirdly, to expand the network as well as create convenience for customers, banks
must coordinate with other commercial enterprises to invest in electronic payment system, add
ATMs, POS ... for customers can perform transactions everywhere at all times.

Fourthly, In order to better manage the E-banking business, banks need to invest in
software and the software must be updated..

4.2.2. Strengthening the marketing of E-banking services

As E-banking services are still relatively new in Vietnam; so to bring this service to
customers, banks need to actively advertise, propagate and guide customers so that customers
can access to this modern service. To succeed in E-banking marketing strategy, banks need to
focus on the following factors:

Firstly, using diversified forms of communication for propagation and advertisement

such as advertisements on newspapers, radio and television; Using pano, posters in public
places, crowds, leaflets advertising new services to the customer; Cooperating with
organizations, state agencies and enterprises to propagate to civil servant clients by opening
ATM cards to pay employees.

Secondly, It is possible to use the staff, especially bank tellers, who regularly interact
with customers to promote and disseminate information about banking services.
Thirdly, In order to satisfy customers, banks should pay more attention to customer
care and can take special care with important customers, such as: (1) Meeting customer needs
information 24/7/365 through channels such as Contact center, Internet ... (2) Enhancing
customer support activities such as free hotline calls; upgrading convenient transactions;
Regularly check the maintenance of machinery and provide new support tools. (3) Building
up close relationships with customers such as maintaining visiting activities, presenting gifts
on the occasion of Tet holidays, regularly exploring the collection of customer feedback, and
handling complaints quickly and effectively....

4.2.3. Focusing on the training the staff of the bank

The success or failure of any business strategy is determined by the human factor. The field
of E-banking has been deployed in Vietnam for a short period of time; On the other hand, this is
the field of modern technology with a high level of gray matter, thus requiring managers, both
bank staff and customers need to have the knowledge to run. There are almost no specialized
subjects in E-banking in the universities of Banking and Finance in Vietnam, so students in
banking and finance majors are not familiar with information technology in the bank.
Meanwhile, IT students are not proficient in banking. On the other hand, the field of E-
63
banking services needs to combine the knowledge of both banking and information
technology, so the training and retraining of staff is very necessary. The training of staff
should be conducted regularly in the form of short-term training, additional knowledge and
should be implemented in two directions:

For the staff who are in charge of information technology, the bank should provide
basic banking knowledge so that they can apply better to their work. In addition, as
technology is constantly innovating, updating new technologies is essential, so banks need to
send employees abroad to train more or hire top experts to update the knowledge for
employees.

For other employees of the bank need more training in information technology, to be
able to introduce to customers the features and usage of electronic banking services. To
develop services, to attract customers, the bank staff must first be used to be able to advertise
to customers. Not only that, the training courses on banking services, communication skills
are essential to meet the increasing needs of customers. In these courses, the bank can
organize itself by inviting top experts to teach or can combine with financial banking training
schools or training companies to conduct.

4.2.4. Minimizing the risks in E-banking transactions

The issue that most customers are concerned about is the safety and accuracy of E-
banking transactions. Due to the fact that E-banking services are operated online, it depends
on the quality of the information system; On the other hand, this service has not been
implemented in Vietnam yet, so the risks in transactions are very high. Today, more and more
technology criminals and their activities are targeted at banks and in particular E-banking.
Hackers use tricks to trick consumers and banks into stealing passwords, making credit cards,
fake ATMs, and so on. These objects are increasingly sophisticated, unpredictable and makes
customers afraid, do not dare to use the services of the bank. Therefore, to make customers
believe in the services of banks, banks need to take measures to minimize the risks in
transactions such as:

Firstly, the banks should use the security configuration using the code via internet of a
professional security company, with these websites at the line address will starting with https
instead of http; At the bottom right corner of the page will be the icon of the lock. On these
websites, there is usually a logo of the company providing security services. When clicking
on this icon, the website address, information of the service provider will be displayed on the
website of the security company, avoid the user into a fake website.

64
 Secondly, the Banks should use a virtual keyboard on the website so customers can
type passwords, avoid typing characters from the keyboard that can be revealed by spyware
that can be detected.

Thirdly, The banks should provide a separate token card for customers to use the
password once for the transfer. This is a high security because if the passwords are disclosed
then others can not be used again.

Fourthly, Periodically, the banks hire reputable security companies to re-evaluate the
bank's security system, thereby detecting vulnerabilities that can be corrected in time to avoid
possible risks out.

Fifthly, the banks should invest in strong management software from reputable
software companies, and regularly update the changes. If the software system is good, modern
hardware is constantly updated so that it can minimize the risks involved in the transaction.

4.2.5. Strengthening the links with organizations and enterprises

To be able to develop E-banking services and bring high profits to banks, commercial
banks need to have close links and cooperation with other units, organizations and enterprises.
such as: insurance companies, securities companies, real estate companies ...

Firstly, with the policy of paying employees through the account to limit the use of
cash, banks have a very good opportunity to develop card services. Banks should cooperate
with agencies, state agencies, enterprises to issue cards (ATMs, credit cards, etc.) to officials
and employees of these organizations. In this way banks can increase the number of cards
issued quickly, this is also a way to promote the image a direct and effective at a low cost.

Secondly, Banks should cooperate with businesses in the field of commerce and
services such as supermarkets, major stores, travel agencies, shipping companies, E-
commerce businesses ... to develop E- banking services. Linking will bring benefits to
businesses, banks and customers, reducing transaction time and cost. In order to do that,
banks need to equip facilities at such enterprises, such as ATMs, POSs to enable them to pay
for their cards.

65
 CONCLUSION

E-banking is the development objective of the banking industry in general. With the
explosion of information technology on the internet, mobile phones, the development of E-
banking services is inevitable. However, in Vietnam there are many inadequacies such as
consumer habits, management level, knowledge of customers about information technology,
the level of staff both in terms of professional and information technology, infrastructure ...
that makes E-banking services in Vietnam less user. By evaluating the satisfaction of
customers using E-banking services in five commercial banks in Vietnam, they know the
factors that affect customer satisfaction on quality of E-banking service and provide
appropriate solutions to increase customer satisfaction, promote E-banking services to
develop, enhance the competitiveness of the banking industry in general in the current
integration period.

The dissertation is presented through an objective survey of customers. Data is

processed from reliability analyzes, Exploratory Factor Analysis (EFA), Confirmatory Factor
Analysis (CFA), and the Structural Equation Model (SEM). Survey results are a reliable
source of data to help banks better understand customers 'needs and assess customers' quality
of E-banking services so that their banks are aware of their location which in the customer's
heart. From there, there is a basis to improve customer satisfaction more effectively.
However, the survey focused only on individual customers based on the representative
sample, so it is not possible to assess in general an overview of all customers of commercial
banks in Vietnam. Based on the findings of this study, further studies could be conducted with
a more diverse group of customers, larger sample sizes, broader scope of research for the
commercial banking system. in Vietnam. The contributions of this study are limited and
lacking. I hope the comments, editing so that authors can continue to improve and draw
experience for the next study.

66
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 APPENDIX 01
LIST OF EXPERTS TO INTERVIEW

Order Name Degree Agency to work

1 Nguyen Thi Bat Associate National Economics University
Prof.Dr
2 Nguyen Hong Nhung Ph.D. National Economics University
3 Nguyen Thanh Phuong Ph.D. Banking Academy
4 Le Thanh Tam Associate National Economics University
Prof.Dr
5 Nguyen Thanh Do Prof. Dr National Economics University
6 Le Van Trinh Masters Training Center of Vietcombank
7 Nguyen Đuc Thanh Ph.D. Vietinbank
8 Dau Thi Thuy Van Ph.D Vietcombank
9 Nguyen Thi Van Anh Masters Techcombank
10 Pham Quang Chau Masters BIDV

70
 APPENDIX 02
CONTENTS OF IN-DEPTH INTERVIEWS

Order Contents

1 What statements did the interviewees feel reluctant to answer?

2 What statements did the interviewees think to be offensive?

3 What statements did the interviewees think had two or more answers?

4 What statements did the interviewees consider using conflicting words,

incomprehensible sentences?

5 What statements did the interviewees consider to use words that are not relevant to
the context?

6 What statements did the interviewees think to be too lengthy?

7 What statements did the interviewees expect to make?

8 What statements did the interviewees think to be not clear?

9 What did the interviewees say about the presentation of these statements?

Source: Author's proposal

71
 APPENDIX 03
QUESTIONNAIRE FOR SURVEY
Dear Sir / Madam!
At present, we are carrying out a scientific research project “Research on Customer
satisfaction on the quality of E-Banking services in Vietnamese commercial banks”.
Investors are individual customers who have been using E-banking services at Vietnamese
commercial banks, you are one of them. Your objective answer will help determine the
success of our research. I hope you have some time to exchange some of your thoughts on the
questions below and please note that no opinion is right or wrong, all of your views are
helpful for our research. I declare that all information you share will be strictly confidential
and will only be used for scientific research purposes.
Look forward to your enthusiastic support!
Special thanks!
PART 1. GENERAL INFORMATIONS ABOUT CUSTOMERS
Would you like to mark (X) the following answers that are appropriate for you:
1. What is your gender?
○ Male ○ Female
2. How old are you?
○ Under 20 years old ○ From 21 to 30 years old
○ From 31 to 40 years old ○ From 41 to 50 years old
○ From 51 to 60 years old ○ Over 61 years old
3. What is your education level?
○ Under High school ○ High school ○ Intermediate level
○ College, university ○ Master ○ Ph.D
4. What is your current job?
○ Managers ○ Officer ○ Housewife
○ Doctor ○ Worker ○ Engineer
○ Teacher ○ Student ○ Other jobs
5. How much is your monthly income?
○ Under 5 million VND ○ From 5 to 10 million VND
○ From 11 to 15 million VND ○ From 16 to 20 million VND
○ From 21 to 25 million VND ○ From 26 to 30 million VND
○ From 31 to 35 million VND ○ From 36 to 40 million VND
○ Over 41 million

72
6. Which bank are you dealing with?
○ State Commercial Banks ○ Joint Stock Commercial Banks
○ Joint-Stock Commercial Banks
7. What E-banking services are you using?
○ Cash transfer ○ Pay the bills ○ Check the information on the account
○ Save money ○ Installment purchase ○ Other services
8. How long have you been using E-banking?
○ Less than 1 year ○ From 1 to 3 years ○ More than 3 years
9. How many banks have you been using?
○ One Bank ○ Two Banks ○ Three Banks ○ Over 3 banks
10. How do you access your bank's website?
○ Less than 1 time per month ○ Once a month ○ Once a week
○ From 2 to 5 times a week ○ Once a day ○ More than once a day

PART 2. EVALUATION ON THE QUANLITY OF E-BANKING SERVICES

Would you please tell us your actual perception of using the E-banking service at the Bank
that you are most trading in according to the comments below? (Please circle your choice on
a scale of 1 to 5).
1 2 3 4 5
Very disagree Disagree No idea Agree Very agree

Encode Scales Select

The bank does not make mistakes in E-banking services from
TC1 1 2 3 4 5
the first transaction.

TC2 Customers feel confident in the prestige of the bank. 1 2 3 4 5

The bank provides E-banking services to customers quickly,
TC3 accurately and without disclosing customer information. 1 2 3 4 5

TC4 The bank provides E- banking services on time as announced. 1 2 3 4 5

All inquiries and complaints of customers are always resolved

TC5 1 2 3 4 5
quickly and satisfactorily.

DU1 The staff of the Bank is always ready to help, support customers. 1 2 3 4 5

The staff of the Bank meet all needs of customers quickly and
DU2 1 2 3 4 5
timely.

DU3 Customers do not spend much time waiting for the transaction. 1 2 3 4 5

73
 When the transaction is unsuccessful, the customer's money is
DU4 1 2 3 4 5
refunded in full and quickly.
The procedure for registration and use of E-banking services is
DU5 simple and quick. 1 2 3 4 5

DU6 The transaction speed of the automated system is very fast. 1 2 3 4 5

The staff of the Bank are knowledgeable enough to answer

PV1 1 2 3 4 5
customer queries.

PV2 Customers feel secure when making E-banking transactions. 1 2 3 4 5

The behavior of the staff of the Bank always create belief for
PV3 1 2 3 4 5
customers.

PV4 The staff of the Bank is always kind, welcoming to customers. 1 2 3 4 5

PV5 The staff of the Bank work quickly. 1 2 3 4 5

DC1 The staff of the Bank always understand the needs of customers. 1 2 3 4 5

The staff of the Bank advise E-banking services in accordance

DC2 1 2 3 4 5
with the needs of customers.

The staff of the Bank always pay special attention to individual

DC3 1 2 3 4 5
customers.

The staff of the Bank always see the interests of customers is

DC4 1 2 3 4 5
their mind.

DC5 The bank has a thoughtful customer care program 1 2 3 4 5

PTHH1 The facilities of the bank are spacious. 1 2 3 4 5

PTHH2 The bank has modern equipment system. 1 2 3 4 5

PTHH3 The number of ATMs, the POS of the bank are many. 1 2 3 4 5

PTHH4 The working style of the Bank staff is professional. 1 2 3 4 5

The costumes and appearance of the Bank staff are neat, polite
PTHH5 1 2 3 4 5
and attractive.

The equipment of the Bank is easy to access when making

PTHH6 1 2 3 4 5
electronic transactions.

PTHH7 Website, documents, forms of the Bank are beautiful, attractive. 1 2 3 4 5

The location and time of bank transactions are convenient for

TCN1 1 2 3 4 5
customers.

74
TCN2 The transaction process of the bank is simple and fast. 1 2 3 4 5

Information on using E-banking services is clear and easy to

TCN3 1 2 3 4 5
understand.

TCN4 Customers easily access to use E-banking services. 1 2 3 4 5

CLDV1 Customers can experience the service is safe and convenient. 1 2 3 4 5

Customers can experience the service is good, prestige and

CLDV2 1 2 3 4 5
quality.

Customers get what they need when using E-banking services of

CLDV3 1 2 3 4 5
banks.

Customers always receive the respect from the bank throughout

CLDV4 1 2 3 4 5
the process of using E-banking services.

Customers are satisfied with what happens in E-banking

HL1 1 2 3 4 5
transactions with banks.

HL2 Customers are satisfied with the bank they deal. 1 2 3 4 5

HL3 Customers will continue to use the bank's E-banking service. 1 2 3 4 5

Thank you for your support!

75
 APPENDIX 04:
DATA RESULTS

Gender
Frequency Percent Valid Percent Cumulative Percent
Male 191 56.7 56.7 56.7
Valid Female 146 43.3 43.3 100.0
Total 337 100.0 100.0

Age
Frequency Percent Valid Percent Cumulative Percent
<20 66 19.6 19.6 19.6
21-30 126 37.4 37.4 57.0
31-40 77 22.8 22.8 79.8
Valid 41-50 39 11.6 11.6 91.4
51-60 20 5.9 5.9 97.3
>60 9 2.7 2.7 100.0
Total 337 100.0 100.0

Education
Frequency Percent Valid Percent Cumulative
Percent
Under High school 49 14.5 14.5 14.5
High school 60 17.8 17.8 32.3
Intermediate level 96 28.5 28.5 60.8
Valid
College, university 106 31.5 31.5 92.3
Master, Doctor 26 7.7 7.7 100.0
Total 337 100.0 100.0

Job
Frequency Percent Valid Percent Cumulative
Percent
Managers 40 11.9 11.9 11.9
Valid Officer 49 14.5 14.5 26.4
Housewife 61 18.1 18.1 44.5

76
 Doctor 41 12.2 12.2 56.7
Worker 28 8.3 8.3 65.0
Engineer 32 9.5 9.5 74.5
Teacher 35 10.4 10.4 84.9
Student 37 11.0 11.0 95.8
Other jobs 14 4.2 4.2 100.0
Total 337 100.0 100.0

Income
Frequency Percent Valid Percent Cumulative
Percent
Under 5 million VND 15 4.5 4.5 4.5
From 5 to 10 million VND 74 22.0 22.0 26.4
From 11 to 15 million VND 80 23.7 23.7 50.1
From 16 to 20 million VND 65 19.3 19.3 69.4
From 21 to 25 million VND 32 9.5 9.5 78.9
Valid
From 26 to 30 million VND 37 11.0 11.0 89.9
From 31 to 35 million VND 14 4.2 4.2 94.1
From 36 to 40 million VND 11 3.3 3.3 97.3
Over 41 million 9 2.7 2.7 100.0
Total 337 100.0 100.0

RELIABILITY - TC

Reliability Statistics
Cronbach's Alpha N of Items
.904 5

Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha
Item Deleted Item Deleted Total Correlation if Item Deleted
TC1 14.10 14.528 .728 .889
TC2 14.18 15.171 .740 .887
TC3 13.75 14.092 .776 .879
TC4 13.87 15.134 .728 .889
TC5 14.02 13.815 .829 .867

77
 RESPONSIVENESS - DU

Reliability Statistics
Cronbach's Alpha N of Items
.859 6

Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha if
Item Deleted Item Deleted Total Correlation Item Deleted
DU1 18.13 13.292 .688 .829
DU2 17.81 14.085 .602 .844
DU3 17.66 13.539 .675 .831
DU4 17.92 13.633 .653 .835
DU5 17.98 13.607 .608 .844
DU6 18.14 13.773 .676 .831

ASSURANCE - PV

Reliability Statistics
Cronbach's Alpha N of Items
.885 5

Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha if
Item Deleted Item Deleted Total Correlation Item Deleted
PV1 14.59 10.981 .680 .870
PV2 14.37 10.442 .687 .869
PV3 14.14 10.021 .766 .850
PV4 14.41 10.642 .679 .871
PV5 14.36 9.903 .807 .840

78
 EMPATHY - DC

Reliability Statistics
Cronbach's Alpha N of Items
.848 5

Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha if
Item Deleted Item Deleted Total Correlation Item Deleted
DC1 13.84 10.256 .604 .831
DC2 13.82 10.311 .591 .834
DC3 14.22 10.129 .688 .809
DC4 13.99 10.196 .645 .820
DC5 14.01 9.309 .759 .788

TANGIBLES - PTHH

Reliability Statistics
Cronbach's Alpha N of Items
.918 7

Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha if
Item Deleted Item Deleted Total Correlation Item Deleted
PTHH1 21.20 26.521 .798 .900
PTHH2 21.24 28.197 .689 .911
PTHH3 20.99 26.494 .766 .903
PTHH4 21.35 28.062 .692 .911
PTHH5 21.43 27.478 .733 .907
PTHH6 21.23 26.870 .777 .902
PTHH7 21.23 27.162 .765 .903

79
 ACCESSIBILITY - TCN

Reliability Statistics
Cronbach's Alpha N of Items
.862 4

Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha if
Item Deleted Item Deleted Total Correlation Item Deleted
TCN1 10.47 7.345 .707 .825
TCN2 10.36 7.730 .648 .848
TCN3 10.43 7.793 .660 .844
TCN4 10.45 6.731 .826 .773

QUANLITY OF E-BANKING SERVICES (CLDV)

Reliability Statistics
Cronbach's Alpha N of Items
.835 4

Item-Total Statistics
Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha
Item Deleted Item Deleted Total Correlation if Item Deleted
CLDV 1 10.38 2.379 .699 .776
CLDV 2 10.67 2.346 .677 .786
CLDV 3 10.40 2.550 .622 .810
CLDV 4 10.64 2.375 .662 .792

80
 CUSTOMER SATISFACTION (HL)

Reliability Statistics
Cronbach's Alpha N of Items
.745 3

Item-Total Statistics
Scale Mean if Scale Variance Corrected Item- Cronbach's Alpha if
Item Deleted if Item Deleted Total Correlation Item Deleted
HL1 6.82 1.302 .634 .591
HL2 6.91 1.403 .518 .722
HL3 6.83 1.278 .569 .666

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy .826
Approx. Chi-Square 5963.146
Bartlett's Test of Sphericity df 496
Sig. .000

Total Variance Explained

Factor Initial Eigenvalues Extraction Sums of Squared Rotation Sums of
Loadings Squared Loadingsa
Total % of Cumulative Total % of Cumulative Total
Variance % Variance %
1 5.063 15.822 15.822 4.681 14.629 14.629 4.421
2 4.068 12.713 28.534 3.694 11.543 26.173 3.444
3 3.345 10.453 38.988 2.928 9.151 35.324 3.208
4 3.288 10.275 49.263 2.882 9.007 44.331 3.164
5 2.982 9.319 58.582 2.611 8.160 52.490 2.829
6 2.661 8.315 66.897 2.272 7.101 59.591 2.552
7 .764 2.386 69.283

81
 8 .722 2.258 71.540
9 .692 2.161 73.702
10 .623 1.947 75.649
11 .603 1.885 77.534
12 .568 1.775 79.309
13 .526 1.644 80.953
14 .507 1.583 82.537
15 .475 1.484 84.020
16 .454 1.419 85.439
17 .441 1.378 86.817
18 .409 1.279 88.096
19 .398 1.242 89.338
20 .385 1.202 90.540
21 .345 1.079 91.619
22 .327 1.023 92.642
23 .318 .995 93.637
24 .294 .918 94.555
25 .287 .896 95.451
26 .267 .834 96.285
27 .242 .755 97.040
28 .230 .720 97.760
29 .202 .631 98.391
30 .195 .608 98.999
31 .174 .544 99.543
32 .146 .457 100.000
Extraction Method: Principal Axis Factoring.
a. When factors are correlated, sums of squared loadings cannot be added to obtain a total
variance.

82
 Factor Matrixa
Factor
1 2 3 4 5 6
PTHH1 .739
PTHH6 .732
PTHH3 .716
PTHH7 .701
PTHH5 .695
PTHH2 .623
PTHH4 .623
TC5 .628
TC3 .591
TC2 .528
TC1 .527
TC4
DC1
PV3 .613
PV5 .606
PV2 .533
PV1
PV4
DU1 .585
DU4 .577
DU3 .559
DU6 .535
DU5 .527
DU2 .504
TCN4 .711 .576
TCN1 .585
TCN3 .542
TCN2 .505
DC5 -.520
DC4
DC3
DC2
Extraction Method: Principal Axis Factoring.
a. 6 factors extracted. 10 iterations required.

83
 Pattern Matrixa
Factor
1 2 3 4 5 6
PTHH1 .839
PTHH6 .817
PTHH7 .804
PTHH3 .800
PTHH5 .763
PTHH4 .735
PTHH2 .732
TC5 .887
TC3 .825
TC2 .790
TC4 .773
TC1 .770
DU1 .761
DU6 .744
DU3 .737
DU4 .707
DU2 .662
DU5 .659
PV5 .882
PV3 .821
PV1 .739
PV2 .731
PV4 .730
DC5 .859
DC3 .766
DC4 .713
DC1 .657
DC2 .639
TCN4 .940
TCN1 .772
TCN3 .723
TCN2 .692
Extraction Method: Principal Axis Factoring.
Rotation Method: Promax with Kaiser Normalization.
a. Rotation converged in 5 iterations.

84
85
 Scalar Estimates (Group number 1 - Default model)

Maximum Likelihood Estimates

Regression Weights: (Group number 1 - Default model)

Estimate S.E. C.R. P Label

TC5 <--- T_C 1.000
TC4 <--- T_C .803 .046 17.275 ***
TC3 <--- T_C .959 .049 19.743 ***
TC2 <--- T_C .809 .045 17.987 ***
TC1 <--- T_C .879 .050 17.403 ***
DU6 <--- D_U 1.000
DU5 <--- D_U .997 .086 11.607 ***
DU4 <--- D_U 1.001 .081 12.314 ***
DU3 <--- D_U 1.040 .081 12.905 ***
DU2 <--- D_U .902 .079 11.402 ***
DU1 <--- D_U 1.099 .083 13.217 ***
DC5 <--- D_C 1.000
DC4 <--- D_C .808 .059 13.603 ***
DC3 <--- D_C .836 .057 14.693 ***
DC2 <--- D_C .787 .062 12.647 ***
DC1 <--- D_C .788 .062 12.697 ***
PV5 <--- P_V 1.000
PV4 <--- P_V .839 .054 15.645 ***
PV3 <--- P_V .952 .053 17.920 ***
PV2 <--- P_V .861 .055 15.527 ***
PV1 <--- P_V .788 .050 15.801 ***
PTHH7 <--- PT_HH 1.000
PTHH6 <--- PT_HH 1.060 .066 16.117 ***
PTHH5 <--- PT_HH 1.008 .065 15.512 ***
PTHH4 <--- PT_HH .896 .065 13.819 ***
PTHH3 <--- PT_HH 1.121 .069 16.212 ***
PTHH2 <--- PT_HH .892 .064 13.957 ***
PTHH1 <--- PT_HH 1.124 .066 16.986 ***
TCN4 <--- T_C_N 1.000
TCN3 <--- T_C_N .736 .046 16.022 ***
TCN2 <--- T_C_N .689 .049 14.051 ***
TCN1 <--- T_C_N .832 .047 17.891 ***
CLDV1 <--- CL_DV 1.000
CLDV2 <--- CL_DV 1.059 .073 14.500 ***
CLDV3 <--- CL_DV .906 .068 13.248 ***
CLDV4 <--- CL_DV 1.041 .073 14.292 ***
HL1 <--- H_L 1.000
HL2 <--- H_L .871 .082 10.570 ***
86
 Estimate S.E. C.R. P Label
HL3 <--- H_L .935 .087 10.762 ***

Standardized Regression Weights: (Group number 1 - Default model)

Estimate
TC5 <--- T_C .880
TC4 <--- T_C .770
TC3 <--- T_C .834
TC2 <--- T_C .789
TC1 <--- T_C .773
DU6 <--- D_U .744
DU5 <--- D_U .666
DU4 <--- D_U .706
DU3 <--- D_U .740
DU2 <--- D_U .655
DU1 <--- D_U .758
DC5 <--- D_C .831
DC4 <--- D_C .713
DC3 <--- D_C .760
DC2 <--- D_C .670
DC1 <--- D_C .673
PV5 <--- P_V .868
PV4 <--- P_V .741
PV3 <--- P_V .813
PV2 <--- P_V .737
PV1 <--- P_V .746
PTHH7 <--- PT_HH .780
PTHH6 <--- PT_HH .812
PTHH5 <--- PT_HH .787
PTHH4 <--- PT_HH .716
PTHH3 <--- PT_HH .816
PTHH2 <--- PT_HH .722
PTHH1 <--- PT_HH .847
TCN4 <--- T_C_N .934
TCN3 <--- T_C_N .735
TCN2 <--- T_C_N .671
TCN1 <--- T_C_N .792
CLDV1 <--- CL_DV .756
CLDV2 <--- CL_DV .768
CLDV3 <--- CL_DV .709
CLDV4 <--- CL_DV .758
HL1 <--- H_L .781
HL2 <--- H_L .664
HL3 <--- H_L .679

87
Covariances: (Group number 1 - Default model)

Estimate S.E. C.R. P Label

T_C <--> D_U .047 .042 1.131 .258
T_C <--> D_C .137 .054 2.558 .011
T_C <--> P_V .088 .052 1.702 .089
T_C <--> PT_HH .054 .049 1.098 .272
T_C <--> T_C_N -.007 .061 -.113 .910
T_C <--> CL_DV .293 .036 8.105 ***
T_C <--> H_L .192 .036 5.334 ***
D_U <--> D_C .042 .036 1.151 .250
D_U <--> P_V .041 .035 1.171 .242
D_U <--> PT_HH .067 .034 1.977 .048
D_U <--> T_C_N -.007 .042 -.162 .871
D_U <--> CL_DV .137 .023 5.971 ***
D_U <--> H_L .105 .024 4.317 ***
D_C <--> P_V .026 .045 .585 .559
D_C <--> PT_HH -.013 .042 -.309 .757
D_C <--> T_C_N .054 .053 1.014 .310
D_C <--> CL_DV .176 .029 6.169 ***
D_C <--> H_L .116 .030 3.855 ***
P_V <--> PT_HH .034 .041 .829 .407
P_V <--> T_C_N .037 .052 .707 .479
P_V <--> CL_DV .163 .027 5.975 ***
P_V <--> H_L .142 .030 4.759 ***
PT_HH <--> T_C_N .058 .049 1.182 .237
PT_HH <--> CL_DV .154 .026 5.834 ***
PT_HH <--> H_L .080 .027 2.907 .004
T_C_N <--> CL_DV .117 .030 3.858 ***
T_C_N <--> H_L .127 .035 3.681 ***
CL_DV <--> H_L .164 .021 7.994 ***

88
Correlations: (Group number 1 - Default model)

Estimate
T_C <--> D_U .070
T_C <--> D_C .160
T_C <--> P_V .103
T_C <--> PT_HH .066
T_C <--> T_C_N -.007
T_C <--> CL_DV .633
T_C <--> H_L .379
D_U <--> D_C .073
D_U <--> P_V .073
D_U <--> PT_HH .123
D_U <--> T_C_N -.010
D_U <--> CL_DV .444
D_U <--> H_L .311
D_C <--> P_V .036
D_C <--> PT_HH -.019
D_C <--> T_C_N .062
D_C <--> CL_DV .451
D_C <--> H_L .271
P_V <--> PT_HH .050
P_V <--> T_C_N .043
P_V <--> CL_DV .421
P_V <--> H_L .335
PT_HH <--> T_C_N .071
PT_HH <--> CL_DV .412
PT_HH <--> H_L .195
T_C_N <--> CL_DV .250
T_C_N <--> H_L .249
CL_DV <--> H_L .712

89
Variances: (Group number 1 - Default model)

Estimate S.E. C.R. P Label

T_C 1.014 .101 9.997 ***
D_U .450 .060 7.542 ***
D_C .724 .082 8.802 ***
P_V .711 .074 9.658 ***
PT_HH .664 .080 8.335 ***
T_C_N 1.029 .096 10.686 ***
CL_DV .211 .027 7.935 ***
H_L .253 .034 7.426 ***
e1 .296 .033 8.873 ***
e2 .450 .040 11.241 ***
e3 .409 .040 10.234 ***
e4 .402 .037 11.004 ***
e5 .526 .047 11.201 ***
e6 .364 .035 10.534 ***
e7 .560 .049 11.401 ***
e8 .452 .041 11.012 ***
e9 .402 .038 10.586 ***
e10 .488 .042 11.496 ***
e11 .402 .039 10.307 ***
e12 .325 .038 8.482 ***
e13 .459 .042 10.894 ***
e14 .369 .036 10.187 ***
e15 .550 .049 11.335 ***
e16 .544 .048 11.315 ***
e17 .232 .028 8.402 ***
e18 .411 .037 11.162 ***
e19 .331 .033 10.042 ***
e20 .443 .040 11.205 ***
e21 .351 .032 11.105 ***
e22 .427 .038 11.278 ***
e23 .386 .036 10.861 ***
90
 Estimate S.E. C.R. P Label
e24 .413 .037 11.195 ***
e25 .507 .043 11.827 ***
e26 .419 .039 10.802 ***
e27 .485 .041 11.787 ***
e28 .331 .032 10.207 ***
e29 .150 .036 4.200 ***
e30 .475 .042 11.233 ***
e31 .597 .050 11.826 ***
e32 .424 .041 10.269 ***
e33 .159 .014 11.382 ***
e34 .165 .015 11.240 ***
e35 .172 .015 11.796 ***
e36 .169 .015 11.354 ***
e37 .162 .021 7.642 ***
e38 .243 .024 10.284 ***
e39 .258 .026 10.035 ***

Squared Multiple Correlations: (Group number 1 - Default model)

Estimate
HL3 .461
HL2 .441
HL1 .610
CLDV4 .575
CLDV3 .503
CLDV2 .590
CLDV1 .571
TCN1 .627
TCN2 .450
TCN3 .540
TCN4 .873
PTHH1 .717
PTHH2 .521
PTHH3 .666
PTHH4 .513
PTHH5 .620
PTHH6 .659
91
 Estimate
PTHH7 .609
PV1 .557
PV2 .544
PV3 .661
PV4 .549
PV5 .754
DC1 .452
DC2 .449
DC3 .578
DC4 .508
DC5 .690
DU1 .575
DU2 .429
DU3 .548
DU4 .499
DU5 .444
DU6 .553
TC1 .598
TC2 .623
TC3 .695
TC4 .593
TC5 .774

92
93
Scalar Estimates (Group number 1 - Default model)

Maximum Likelihood Estimates

Regression Weights: (Group number 1 - Default model)

Estimate S.E. C.R. P Label

CL_DV <--- T_C .229 .020 11.621 ***
CL_DV <--- D_U .227 .029 7.943 ***
CL_DV <--- P_V .173 .021 8.257 ***
CL_DV <--- D_C .175 .022 8.068 ***
CL_DV <--- PT_HH .171 .022 7.794 ***
CL_DV <--- T_C_N .096 .016 5.957 ***
H_L <--- CL_DV .744 .074 10.007 ***
TC5 <--- T_C 1.000
TC4 <--- T_C .803 .046 17.282 ***
TC3 <--- T_C .957 .049 19.704 ***
TC2 <--- T_C .809 .045 18.004 ***
TC1 <--- T_C .879 .050 17.431 ***
DU6 <--- D_U 1.000
DU5 <--- D_U .998 .086 11.604 ***
DU4 <--- D_U 1.002 .081 12.317 ***
DU3 <--- D_U 1.041 .081 12.894 ***
DU2 <--- D_U .902 .079 11.389 ***
DU1 <--- D_U 1.100 .083 13.214 ***
DC5 <--- D_C 1.000
DC4 <--- D_C .808 .059 13.591 ***
DC3 <--- D_C .837 .057 14.703 ***
DC2 <--- D_C .788 .062 12.649 ***
DC1 <--- D_C .787 .062 12.680 ***
PV5 <--- P_V 1.000
PV4 <--- P_V .839 .054 15.648 ***
PV3 <--- P_V .952 .053 17.919 ***
PV2 <--- P_V .861 .055 15.527 ***
PV1 <--- P_V .788 .050 15.801 ***
PTHH7 <--- PT_HH 1.000
PTHH6 <--- PT_HH 1.057 .065 16.167 ***
PTHH5 <--- PT_HH 1.004 .065 15.550 ***
PTHH4 <--- PT_HH .896 .064 13.889 ***
PTHH3 <--- PT_HH 1.116 .069 16.233 ***
PTHH2 <--- PT_HH .891 .064 14.015 ***
PTHH1 <--- PT_HH 1.119 .066 17.037 ***
TCN4 <--- T_C_N 1.000
TCN3 <--- T_C_N .734 .046 15.997 ***
TCN2 <--- T_C_N .687 .049 14.049 ***
TCN1 <--- T_C_N .831 .046 17.899 ***
CLDV1 <--- CL_DV 1.000
CLDV2 <--- CL_DV 1.054 .072 14.591 ***
94
 Estimate S.E. C.R. P Label
CLDV3 <--- CL_DV .902 .068 13.312 ***
CLDV4 <--- CL_DV 1.036 .072 14.369 ***
HL1 <--- H_L 1.000
HL2 <--- H_L .849 .082 10.390 ***
HL3 <--- H_L .931 .087 10.742 ***

Standardized Regression Weights: (Group number 1 - Default model)

Estimate
CL_DV <--- T_C .498
CL_DV <--- D_U .328
CL_DV <--- P_V .314
CL_DV <--- D_C .321
CL_DV <--- PT_HH .301
CL_DV <--- T_C_N .211
H_L <--- CL_DV .679
TC5 <--- T_C .880
TC4 <--- T_C .770
TC3 <--- T_C .833
TC2 <--- T_C .789
TC1 <--- T_C .774
DU6 <--- D_U .743
DU5 <--- D_U .667
DU4 <--- D_U .707
DU3 <--- D_U .740
DU2 <--- D_U .655
DU1 <--- D_U .758
DC5 <--- D_C .831
DC4 <--- D_C .712
DC3 <--- D_C .761
DC2 <--- D_C .671
DC1 <--- D_C .672
PV5 <--- P_V .868
PV4 <--- P_V .741
PV3 <--- P_V .813
PV2 <--- P_V .737
PV1 <--- P_V .746
PTHH7 <--- PT_HH .782
PTHH6 <--- PT_HH .812
PTHH5 <--- PT_HH .787
PTHH4 <--- PT_HH .717
PTHH3 <--- PT_HH .814
PTHH2 <--- PT_HH .723
PTHH1 <--- PT_HH .846
TCN4 <--- T_C_N .935
TCN3 <--- T_C_N .734

95
 Estimate
TCN2 <--- T_C_N .670
TCN1 <--- T_C_N .792
CLDV1 <--- CL_DV .762
CLDV2 <--- CL_DV .771
CLDV3 <--- CL_DV .712
CLDV4 <--- CL_DV .761
HL1 <--- H_L .789
HL2 <--- H_L .653
HL3 <--- H_L .683

Covariances: (Group number 1 - Default model)

Estimate S.E. C.R. P Label

T_C <--> D_U .047 .042 1.131 .258
T_C <--> D_C .137 .054 2.557 .011
T_C <--> P_V .088 .052 1.703 .089
T_C <--> PT_HH .054 .049 1.096 .273
T_C <--> T_C_N -.007 .061 -.117 .907
D_U <--> D_C .042 .036 1.151 .250
D_U <--> P_V .041 .035 1.169 .242
D_U <--> PT_HH .067 .034 1.976 .048
D_U <--> T_C_N -.007 .042 -.161 .872
D_C <--> P_V .026 .045 .586 .558
D_C <--> PT_HH -.013 .043 -.304 .761
D_C <--> T_C_N .054 .053 1.014 .311
P_V <--> PT_HH .034 .041 .827 .408
P_V <--> T_C_N .037 .052 .707 .479
PT_HH <--> T_C_N .058 .049 1.179 .238

Correlations: (Group number 1 - Default model)

Estimate
T_C <--> D_U .070
T_C <--> D_C .160
T_C <--> P_V .103
T_C <--> PT_HH .065
T_C <--> T_C_N -.007
D_U <--> D_C .073
D_U <--> P_V .073
D_U <--> PT_HH .123
D_U <--> T_C_N -.010
D_C <--> P_V .036
D_C <--> PT_HH -.019
96
 Estimate
D_C <--> T_C_N .062
P_V <--> PT_HH .050
P_V <--> T_C_N .043
PT_HH <--> T_C_N .070

Variances: (Group number 1 - Default model)

Estimate S.E. C.R. P Label

T_C 1.015 .101 10.005 ***
D_U .449 .060 7.535 ***
D_C .724 .082 8.801 ***
P_V .712 .074 9.660 ***
PT_HH .668 .080 8.369 ***
T_C_N 1.031 .096 10.703 ***
e40 .020 .006 3.259 .001
e41 .139 .022 6.191 ***
e1 .295 .033 8.848 ***
e2 .450 .040 11.238 ***
e3 .412 .040 10.254 ***
e4 .402 .037 10.997 ***
e5 .525 .047 11.191 ***
e6 .365 .035 10.541 ***
e7 .560 .049 11.400 ***
e8 .452 .041 11.006 ***
e9 .403 .038 10.588 ***
e10 .488 .042 11.499 ***
e11 .402 .039 10.301 ***
e12 .325 .038 8.474 ***
e13 .459 .042 10.896 ***
e14 .368 .036 10.173 ***
e15 .550 .049 11.331 ***
e16 .545 .048 11.319 ***
e17 .232 .028 8.398 ***
e18 .411 .037 11.162 ***
e19 .331 .033 10.044 ***
e20 .443 .040 11.205 ***
e21 .351 .032 11.105 ***
e22 .423 .038 11.248 ***
e23 .386 .036 10.861 ***
e24 .415 .037 11.197 ***
e25 .505 .043 11.814 ***
e26 .423 .039 10.821 ***
e27 .484 .041 11.778 ***
e28 .332 .033 10.216 ***
e29 .148 .036 4.138 ***
e30 .477 .042 11.251 ***

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 Estimate S.E. C.R. P Label
e31 .597 .050 11.834 ***
e32 .424 .041 10.276 ***
e33 .155 .014 11.200 ***
e34 .162 .015 11.088 ***
e35 .170 .015 11.676 ***
e36 .168 .015 11.212 ***
e37 .157 .021 7.306 ***
e38 .249 .024 10.391 ***
e39 .256 .026 9.917 ***

Squared Multiple Correlations: (Group number 1 - Default model)

Estimate
CL_DV .806
H_L .461
HL3 .466
HL2 .427
HL1 .622
CLDV4 .580
CLDV3 .507
CLDV2 .595
CLDV1 .581
TCN1 .627
TCN2 .449
TCN3 .538
TCN4 .875
PTHH1 .716
PTHH2 .522
PTHH3 .663
PTHH4 .515
PTHH5 .619
PTHH6 .659
PTHH7 .612
PV1 .557
PV2 .544
PV3 .661
PV4 .549
PV5 .754
DC1 .452
DC2 .450
DC3 .579
DC4 .507
DC5 .690
DU1 .575
DU2 .428
DU3 .547

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 Estimate
DU4 .500
DU5 .444
DU6 .552
TC1 .599
TC2 .623
TC3 .693
TC4 .593
TC5 .775

Regression Weights: (Group number 1 - Default model)

Parameter SE SE-SE Mean Bias SE-Bias

CL_DV <--- T_C .017 .001 .229 .000 .001
CL_DV <--- D_U .034 .001 .228 .002 .002
CL_DV <--- P_V .025 .001 .173 .001 .001
CL_DV <--- D_C .021 .001 .174 -.001 .001
CL_DV <--- PT_HH .022 .001 .172 .001 .001
CL_DV <--- T_C_N .022 .001 .095 -.002 .001
H_L <--- CL_DV .081 .003 .739 -.004 .004
TC5 <--- T_C .000 .000 1.000 .000 .000
TC4 <--- T_C .042 .001 .801 -.001 .002
TC3 <--- T_C .038 .001 .957 .000 .002
TC2 <--- T_C .039 .001 .806 -.002 .002
TC1 <--- T_C .040 .001 .881 .002 .002
DU6 <--- D_U .000 .000 1.000 .000 .000
DU5 <--- D_U .080 .003 1.005 .006 .004
DU4 <--- D_U .082 .003 1.006 .004 .004
DU3 <--- D_U .076 .002 1.042 .001 .003
DU2 <--- D_U .082 .003 .904 .002 .004
DU1 <--- D_U .072 .002 1.101 .001 .003
DC5 <--- D_C .000 .000 1.000 .000 .000
DC4 <--- D_C .057 .002 .805 -.002 .003
DC3 <--- D_C .053 .002 .833 -.004 .002
DC2 <--- D_C .057 .002 .782 -.005 .003
DC1 <--- D_C .060 .002 .786 -.001 .003
PV5 <--- P_V .000 .000 1.000 .000 .000
PV4 <--- P_V .039 .001 .836 -.003 .002
PV3 <--- P_V .057 .002 .954 .002 .003
PV2 <--- P_V .055 .002 .864 .003 .002
PV1 <--- P_V .045 .001 .785 -.002 .002
PTHH7 <--- PT_HH .000 .000 1.000 .000 .000
PTHH6 <--- PT_HH .059 .002 1.063 .006 .003
PTHH5 <--- PT_HH .082 .003 1.010 .005 .004
PTHH4 <--- PT_HH .046 .001 .896 .001 .002
PTHH3 <--- PT_HH .081 .003 1.120 .004 .004

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 Parameter SE SE-SE Mean Bias SE-Bias
PTHH2 <--- PT_HH .058 .002 .895 .004 .003
PTHH1 <--- PT_HH .078 .002 1.129 .010 .003
TCN4 <--- T_C_N .000 .000 1.000 .000 .000
TCN3 <--- T_C_N .050 .002 .734 .000 .002
TCN2 <--- T_C_N .053 .002 .682 -.006 .002
TCN1 <--- T_C_N .044 .001 .828 -.003 .002
CLDV1 <--- CL_DV .000 .000 1.000 .000 .000
CLDV2 <--- CL_DV .073 .002 1.057 .002 .003
CLDV3 <--- CL_DV .049 .002 .903 .001 .002
CLDV4 <--- CL_DV .058 .002 1.041 .004 .003
HL1 <--- H_L .000 .000 1.000 .000 .000
HL2 <--- H_L .081 .003 .846 -.003 .004
HL3 <--- H_L .065 .002 .933 .002 .003

100