RESEARCH PROJECT
(BMBR5103) Factors affecting the decision to choose to save
money by individual clients in Nam Viet Commercial
Joint Stock Bank in Ho Chi Minh City, Viet Nam
STUDENT’S FULL NAME : NGUYEN THY NGOC DUNG
STUDENT ID : CGSVN00014960
INTAKE : MBAOUM0313
ADVISOR’S NAME & TITLE : Assoc.Prof.Dr.NGUYEN PHAN

SEPTEMBER 2014 Advisor’s assessment

to understand more clearly about the psychology of customer transactions in bank deposits.
Theoretical basis of the study of model based on the SERVQUAL measurement of service
quality (Parasuraman, Zeithaml and Berry, 1985) and previous studies to apply in time 2013. The
basic assumption of the measurement was that customers can evaluate a firm's service quality by
comparing their perceptions with their expectations.
The study was carried out in two steps as qualitative research and quantitative research. The
results analysis will show that factor of bank policies will affect to the most important decisions
made by customer’s choice when deciding to save money in Navibank, followed by the
sympathy factor, an ability to satisfy of the bank and all the variables are related in the same
direction with the decision of the customer’s choice. ACKNOWLEDGEMENTS

A completed study would not be done without any assistance. Therefore, the author who
conducted this research gratefully gives acknowledgements to their support and motivation
during the time of doing this research as a requirement of completing my Master of Business
Administration.
First of all, I would like to express my endless thanks and gratefulness to my supervisor
Assoc.Prof.Dr.Nguyen Phan. His kindly support and continuous advises went through the
process of completion of my thesis. Without his motivation and instruction, the study would have

Table 4.2: The Cronbach Alpha of the measuring scales…………………………………….44
Table 4.3: The KMO index of the measuring scale………………………………………… 45
Table 4.4: The Empathy Component Matrix…………………………………………………46
Table 4.5: The Assurance Component Matrix…………………………………… ……… 46
Table 4.6: The Reliability Component Matrix…………………………………… ……… 48
Table 4.7: The Tangible Facilities Component Matrix…………………………… ……….49
Table 4.8: The Responsiveness Component Matrix………………………………… …… 50

LIST OF FIGURES

Figure 2.1: The integrated Gaps model of service quality………………………………… 22
Figure 2.2: The 10 determinants of service quality……………………………………….….23
Figure 3.1: Research Process……………………………………………………………… 30
Figure 3.2: The originally planned research model………………………………………… 35
Figure 4.1: The Gender Structure Analysis…………………………… ………………… 38
Figure 4.2: The Age Structure…………………………………………………………………39
Figure 4.3: Qualification Structure……………………………………………………………40
Figure 4.4: The Income Structure…………………………………………………………… 41

2.4 Summary: 27
CHAPTER 3: RESARCH METHODOLOGY 28
3.1 Selection Methods: 28
3.2 Preliminary Research: 28
3.3 The Secondary Research: 29
3.4 Research sample dimension: 30
3.5 The concept studies, scales and the theory: 30
3.7 Data Collection: 34
3.8 The method of data analysis: 34
3.9 Summary: 35
CHAPTER 4: THE RESEARCH RESULTS ANALYSIS 36
4.1 Introduction: 36
4.2 Described Sample Statistical Analysis: 36
4.2.1 The Gender Structure Analysis: 36
4.2.2 The Age Structure Analysis: 37
4.2.3 The Qualification Structure Analysis: 37
4.2.4 The Income Structure Analysis: 38
4.3 The Characteristic of the Study Sample: 39
4.4 The analysis and assessment of customers on the factors affecting to choose theNavibank: 40
4.4.1 Assessment of the reliability scale: 41
4.4.2 The analysis of factors affecting decision to choose the Navibank: 41
4.4.3 Analysis on the factor measuring scale of the customer’s perception about the Empathy: 42
4.4.4 Analysis on the factor measuring scale of the customer’s perception about the Assurance:.
……………………………………………………………………………………………………46
4.4.5 Analysis on the factor measuring scale of the customer’s perception about the Reliability:.
……………………………………………………………………………………………………50
4.4.6 Analysis on the factor measuring scale of the customer’s perception about the Tangible
Faculties: 54
4.4.7 Analysis on the factor measuring scale of the customer’s perception about the
Responsiveness…………………………………… …………………………………… 58

due. Often, she will enter the capital and interest to continue forward, but this time she
quite hesitated. The problem is that Ms. Ha weigh while many banks have announced
they are classified on group 1-2 from the National Bank that meaning the healthy banks,
the credit growth in 2012 at a pretty. Then she's bank savings, the staff kept saying not
received official letters about this. As a result, she is quite disturbed that banks silent or
avoids questions about the grouping of credit growth.
 The third case: Ms. Nguyen Mai Lan Anh in Binh Thanh district, Ho Chi Minh City, said
that banks in the group that does not matter to me, because deposit rates are equal and
more importantly, she believe that the government will not let any banking collapse.
Therefore, the only problem is the attitude to serve the customer of the bank that will
makes the customer satisfy.
So, based on the above cases, we can find out the problems of the customer when they are so
weigh to decide which bank that they will choose to save their money. Furthermore, when
Vietnam joined the WTO, more and more customers have more choice of banks with 100%
foreign experience for hundreds of years with the services is more professional appearance, and
then will compete more aggressively. Therefore, the competitive challenges of the foreign banks
to domestic banks will be increasing. According to a recent survey by The United Nations
Development Program (UNDP, 2008), in collaboration with the Ministry of Planning and
Investment in 2008, with 42% of enterprises and 50% of people interviewed said that when
financial markets open, they will choose to borrow money in foreign banks rather than domestic
banks! Preliminary results of this study also indicate whether the banking market bustling with
the number of new banks and banking services to a few more years, but there have been plenty
of customers to participate in survey respondents had changed bank transactions, or use the
services of several banks at the same time.
Therefore, to build the remittance behavior of individual customers, the banks need more
information about the customer satisfaction as well as factors leading to the decision to select the
bank to save money, to be the basis of planning strategies to improve the efficiency of capital
mobilization.
Thus, there should be a study to determine the factors affecting the deposits of bank customers to
help answer the question: how to keep customers in an environment of increasingly fierce

- Find out the proposed solutions and policies to increase capital mobilization effectively with
low cost.
- Discover the difference in the bank choices to deposit of the customers affecting in gender,
qualifications, income and the environment.
1.5 Subjects And Scope Of Research:
Study subjects: the individual customer to deposit money in Nam Viet Commercial Joint Stock
Bank.
Scope of the Study: Nam Viet Commercial Joint Stock Bank, Ho Chi Minh City, Viet Nam.
1.6 Research Methodology:
This study was done in Nam Viet Commercial Joint Stock Bank through two steps:
(1) The preliminary studies using qualitative methods and,
(2) The secondary research method by using the quantitative method.
+ Preliminary research: the qualitative method to identify the factors that affect customer deposit
at Nam Viet Commercial Joint Stock Bank. The preliminary study was conducted through
discussion or interview duel 10 financial experts, the transaction manager or customer service
manager. Since then designed a questionnaire to interview customers with banking transactions.
+ Based on the above information, the secondary research conducted by quantitative methods,
using construction methods detailed questionnaire with 5-level Likert scale.
+ After quantitative research, analyze collected data and identify factors that influence
customers' deposits in Nam Viet Commercial Joint Stock Bank, a number of in-depth interviews
will be conducted to understand the causes and look receive objective factors influence, from
which conclusions and reasonable solution.
1.7 Practical Implications Of The Research:
The study provides a number of practical implications for managers, staff working in particular
Nam Viet Commercial Joint Stock Bank and across the whole system of Nam Viet Commercial
Joint Stock Bank. Specifically as follows:
 The research results help traders, who come into direct contact with customers to
better understand customer behavior, thereby improve ourselves to better serve
increasingly, this will help improve the bank's value in the eyes of their customers
and to promote more customer come to the banks.


CHAPTER 2: LITERATURE REVIEW AND THEORETICAL STUDY
So, in the Chapter 1 that presented an overview of the research topic. At Chapter 2, we will
presents the theoretical basis for savings deposits product and remittance behavior of individual
customers, the theory of banking services, consumer behavior and service quality model
“SERVQUAL” (Parasuraman, Zeithaml and Berry, 1985) .

2.1 Theoretical Foundations of The Savings Deposit’s Products:
According to Dr. Kieu M. N. (2007) , the author mentions that the Capital mobilization’s activity
is one of the major activities and most important of the Commercial Banks. This activity will
bring the capital to the banks and may perform other activities as providing credit and services to
the banking.
Dr. Kieu M. N. also mentions that the Capital mobilization through a deposit account is a form of
capital mobilization and brings the classic characteristics of individual commercial banks. Due to
the needs and dynamics of customer deposits are varied and different, to attract depositors,
commercial banks have designed and developed a variety of different deposit products.
However, with the research “Factors affecting the decision to choose to save money by
individual clients in Nam Viet Commercial Joint Stock Bank in Viet Nam.”, the research stops to

increase in savings among those clients who had opened a SEED account after one year
compared to the control group. These results suggest that formal commitment savings accounts
have an important role to play in the accumulation of assets among the world’s poor.
Term savings products: designed for individual customers or organizations have temporarily
idle cash to banks for the purpose of safe and profitable, but not necessarily used to plan deposits
in the future. For customers who choose this form of deposits, the safety objectives and
convenience is more important than profit target.
Recurring savings product: is savings products designed for individual customers and
organizations wishing to send money for the purpose of safety, profitability and establish plans
to use the money in the future. For major customers of this type of deposit is the individual wants
a steady income and regular expenditure to meet monthly or quarterly. Most customers prefer to
choose this form of deposits that are workers, retired officers. Their goal is important when
choosing this form of deposit income is recurring. Therefore, interest rates play an important role
to attract the customers.
2.2 Basis theoretical for services, banking services, consumer behavior and the
measurement model of service quality:
2.2.1 The concept of services:
In economics, a service is an intangible commodity. That is, services are an example of
intangible economic goods.
According to Philip Kotler (2004): the service is the results of actions that a party may give the
other party and mostly intangible and does not result in ownership of something. Its products
may or may not be associated with the physical product.
The generic clear-cut and complete, concise and consistent definition of the service term reads as
follows:
A service is a set of one time consumable and perishable benefits
- Delivered from the accountable service provider, mostly in close coactions with his
internal and external service suppliers,
- Effectuated by distinct functions of technical systems and by distinct activities of
individuals, respectively,
- Commissioned according to the needs of his service consumers by the service customer

- Money Transfer Service: Currently, this service is offered by most of the commercial
banks, in the form of remittance from abroad through Western Union to Vietnam, remittances
and domestic transfers.
- Card Services: Banks are supplied in recent years as a means of replacing cash and credit
payments. This is a service that most banks are targeted as a main point service.
- The other banking services such as trust services, financial consulting, account
management stock investors Many banks have also been provided, but not yet in common use
as a result of the survey sample; there are many other products and services that are common in
the world, such as asset management for high-income individuals, safe management, it has not
been provided in our banking market.
2.2.3 Consumer behavior and the bank selection:
2.2.3.1 Customer Behavior:

Before understanding consumer behavior let us first go through few more terminologies:
 Who is a Consumer? Any individual who purchases goods and services from the
market for his/her end-use is called a consumer. In simpler words a consumer is one who
consumes goods and services available in the market. Take an example - Tom might
purchase a tricycle for his son or Mike might buy a shirt for himself. In the above
examples, both Tom and Mike are consumers.
 What is consumer Interest? Every customer shows inclination towards
particular products and services. Consumer interest is nothing but willingness of
consumers to purchase products and services as per their taste, need and of course pocket.
Let’s go through the following example:
Both Maria and Sandra went to the nearby shopping mall to buy dresses for themselves. The
store manager showed them the best dresses available with him. Maria immediately purchased
two dresses but Sandra returned home empty handed. The dresses were little too expensive for
Sandra and she preferred simple and subtle designs as compared to designer wears available at
the store. In the above example Sandra and Maria had similar requirements but there was a huge
difference in their taste, mind set and ability to spend.
 What is Consumer Behavior? Consumer Behavior is a branch which deals with

people's wants. It also tries to assess influences on the consumer from groups such as family,
friends, reference groups, and society in general.
From the above definition, we can understand simple "customer behavior including thinking and
feeling that people have and the actions they perform in the process of shopping and consumer
banking products services ". Factors such as feedback from other consumers, information on
product quality - service, price, packaging, appearance products, promotional activities,
promotions and so on, that are can affect feeling, thoughts and behaviors of customers.
2.2.3.2 The bank selection of the customer:
According to Goulrou Abdollahi, 2008, when customers need to choose a bank transaction, they
will compare them between the banks. Selection decisions are based on the level of form
carefully when considering options, and customers feel about the different banks. Eventually,
they will find a bank like the best private opinion. For information about the bank convinced that
they collected before going to decide that they will arise the interesting psychological. So they
will loyal to the bank that they chose.
2.2.4 The measurement model of service quality – SERVQUAL:
According to Parasuraman et al is considered the first to study the quality of service in a specific
and detailed in the marketing arena with the introduction of model 5 gap in quality:
The key point for each gap can be summarized as follow:
- Customer gap: the difference between customer expectation and perceptions - the
services quality gap.
- Gap 1: the difference between what customer expected and what management.
- Gap 2: the difference between management's perceptions of customer expectation and
translation of those perceptions into the service quality specification and designs.
- Gap 3: the difference between specification or standards of service quality and the actual
service delivered to the customer.
- Gap 4: the difference between services delivered to customer and the promise of the firm
to customer about its service quality.

3. Responsiveness: Willingness to help customers and provide prompt service.
+ The company's employees have to know exactly what the service is done
+ Employees of the company have made a quick service
+ Employees of the company are always ready to help you
+ Company staff have ever so busy that they did not meet the requirements
4. Assurance (including competence, courtesy, credibility and security): Knowledge and
courtesy of employees and their ability to inspire trust and confidence.
+ The behavior of employees of the company made you trust or not?
+ Staff of the company is polite and welcoming with you
+ Company staff has expert knowledge to answer your questions
5. Empathy (including access, communication, understanding the customer): Caring and
individualized attention that the firm provides to its customers.
+ The company always pays special attention to you.
+ The company has staff that cares about you
+ The company takes your benefit that is their mind
+ Company staff understands your needs
+ Company working on the convenient time
In fact, SERVQUAL measure includes three segments. First two segments, each segment is 22
observed variables measuring the quality of service that customers expect and perceive reality.
The variables used 7 point Likert scale. Difference (except for the expected sense) denotes
evaluation of service quality. This measurement model is called non-assert (disconfirmation
model). The 3rd segment of customer requirements assessment of five key components.
After much testing and research applications, SERVQUAL is recognized as a valid scale theory
and practice. However, there is still much debated, criticized, questioned this scale, especially in
terms of generality and quality measurement effect. One thing that can be seen is the
SERVQUAL measurement procedures rather lengthy. Thus, emerged a variant of SERVQUAL
is SERVPERF.
This scale was Cronin & Taylor, 1992, the SERVPERF led by Thongsamak, 2001 introduced,
determine service quality by measuring only perceived quality of service (instead of measuring
the perceived quality and expectations as SERVQUAL ). The two men said that service quality is