Tài liệu Correlation of depositors’ behavior and bank patronage in the inner districts of ha noi (2)

ACKNOWLEDGEMENT I would like to express my heartfelt gratitude to leaders of Thai Nguyen University in VietNam and Southern Luzon State University in the Philippines who created best conditions for me to complete the course generally and fulfill the thesis particularly. My gratitude goes towards Professors directly gave me useful and memorable lectures and guides in DBA namely Dr. Professor Cecilia N. Gascon, Dr. Professor Walberto A. Macaraan, Dr.Professor Melchor Melo O. Placino, Dr.Professor Alice T. Valerio, Dr. Professor Do Anh Tai, and Dr.Professor Tran Dai Nghia. They provided me a rich and fertile environment to study and explore new ideas. They made my DBA life is ever fluid, and, in the course of it all, a warm and inviting place to work. My special thank to Dr. Professor Cecilia N. Gascon who provided me valuable guides to complete the dissertation. I am grateful to lecturers who managed the International Cooperation Program between Vietnam and the Philippines namely Professor Tran Tuan Anh and Professor Nguyen Thanh Hai. Without their cooperation, I could not have chance to join and fulfill the course. I would not have contemplated this road if not for my parents, my wife, my children, and all of my dear friends who instilled within me a love of creative pursuits, science and language, all of which finds a place in this the dissertation. Trinh Thanh Binh July, 2013 i TABLE OF CONTENTS ACKNOWLEDGEMENT i TABLE OF CONTENTS ii ABSTRACT vii LIST OF TABLES viii LIST OF FIGURES xiv LIST OF APPENDICES xv CHAPTER I. II. INTRODUCTION 1 1.1. Background of the Study 1 1.2. Objectives of the Study 3 1.3. Statement of the Problem 3 1.4. Hypotheses of the Study 4 1.5. Significance of the Study 5 1.6. Scope and limitation of the Study 6 1.7. Definition of Terms 7 REVIEW OF LITERATURE AND STUDIES 10 ii 2.1. Economic Development 10 2.1.1 Viet Nam Economy 10 2.1.2. Ha Noi Economic Development 11 2.2. Regulation of Banking Industry 12 2.2.1. Background of Vietnam Banking Industry 12 2.2.2. Key Challenges Facing the Banking Industry 13 2.3. Background of Ha Noi Banking Industry 15 2.3.1. Banking Industry in Ha Noi 15 2.3.2. Practice in Deposit Mobilization in Ha Noi 15 2.4. Consumer Behavior 16 2.5. Review of Related Studies 20 2.6. Psychological Attributes of Depositors’ Behavior in Bank 22 Patronage 2.6.1. External Psycological Attributes 22 2.6.2. Internal Attributes 23 2.7. Factors Influencing Depositor Behavior in Deposit 24 2.7.1. Subjective Factors 24 iii III. IV. 2.7.2. Objective Factors 25 2.8. Conceptual Framework 27 METHODOLOGY 29 3.1. Research Design 29 3.2. Determination of Sample Size 29 3.3. Sampling Design and Techniques 30 3.4. Subject of the Study 31 3.5. Research Instrument 31 3.6. Data Collection Method 31 3.7. Data Processing Method 32 RESULTS AND DISCUSSION 34 4.1. Depositors’ Profile 34 4.2. Depositors’ Distribution by Districts 36 4.3. Attributes of Depositors’ Behavior in Bank Patronage in the 37 Inner Districts of Ha Noi 4.3.1. External Attributes Implication of Depositors’ Behavior 37 4.3.1.1. Depositors’ Selection by Specific Banks and Type of 37 Banks – Foreign Banks, State Owned Banks and Joint Stock Banks 4.3.1.2. Time Span Depositors Began Relationship with Banks 39 iv 4.3.1.3. Depositors’ Selection of the Deposit Kinds and Terms 42 4.3.2. Depositors’ Motivation in Bank Patronage 47 4.3.2.1. Depositors’ Motivation for Changing a Bank 47 4.3.2.2. Depositors’ Motivation for Selecting Banks They Deposit 54 with 4.3.2.3. Depositors’ Expectation on the Future Promotions 65 4.3.2.4. Depositors’ Future Investment Plan 68 4.3.2.5. Depositors’ Willingness to Make a Reference with Their 72 Friends 4.3.3. Depositors’ Perception and Bank Patronage 74 4.3.3.1. Depositors’ Attitudes in Acceptance of Interest Rate 74 4.3.3.2. Depositors’ Attitudes in Acceptance of Bank Service Quality 75 4.3.3.3. Depositors’ Attitudes for Existing Promotion Programs 77 4.3.3.4. Depositors’ Perception of Bank Safety 83 4.4. Factors Influencing Depositors’ Behavior in Bank Patronage in 85 the Inner District of Ha Noi 4.4.1. Depositors’ Selection of Factors and Factors’ Correlation 85 4.4.2. Critical Factors 89 v V. 4.4.2.1. Prestigious Banks 89 4.4.2.2. Quick and Convenient Procedure 91 4.4.2.3. Competitive Interest Rates 91 4.4.2.4. Security and Safe 93 4.4.2.5. Convenient Location 94 SUMMARY, FIDINGS, CONCLUSIONS AND 95 RECOMMENDATIONS 5.1. Summary of Findings 95 5.2. Conclusions 102 5.3. Recommendations 105 BIBLIOGRAPHY 109 APPENDICES 114 SURVEY QUESTIONNAIRES 151 CURRICULUM VITAE 161 vi ABSTRACT This study was conducted to determine and analyze the correlation of depositors’ behavior and bank patronage in the inner districts of Ha Noi. As the knowledge of depositors’ behavior and bank patronage is not well understandable and given the critical importance of understanding of depositors’ behavior, this study intended to identify the factors influencing depositors’ behavior and define the winning strategies for the banks in fund mobilization. The methodology of the thesis was to review the various relevant literatures. Method of system analysis, method of fieldwork, method of comparison, quantitative research methods and forecasting method were also used in the study. This research was conducted within the inner districts of Hanoi with 257 respondents, which were selected based on random probability. Findings showed that depositors’ behavior was influenced by both internal demographic factors and external factors. The result further revealed a high correlation between depositors’ behavior and factors such as “prestigious banks”, “security and safe”, “competitive rates”, “quick and convenient procedure”. However, lower correlation was obtained in depositors’ perception and attitudes. The recommendations are developed from the insights and conclusions. First is to address the brand issue of banks that built through depositors’ perception of “bank safety”, “prestigious” and other key influencers. Second, banks should take into account all factors in their winning marketing strategies. Third is to recommend the contingency plan that banks should have to keep safe. And the last is to recommend the SBV need to liberalize interest rates on deposits. vii LIST OF TABLES Table CONTENT Page Table 1 Bank classification by ownership and key indicators as of 30 June 2013 13 Table 2 Depositors’ profile 35 Table 3 Distribution of depositors by gender and marital status 36 Table 4 The bank selection by bank ownership 38 Table 5 Distribution of depositors by banks 39 Table 6 The period of time that depositors maintain relationship with 40 Banks Table 7 Relation between marital Status and time span with banks 41 Table 8 Relation between age range and time span with banks 41 Table 9 Relation between professional, employment and time span 42 with banks Table 10 Kind of deposits 43 Table 11 Deposit maturity 44 Table 12 Relation between marital status and type of deposits 44 Table 13 Relation between age range and terms of deposits 45 Table 14 Relation between education background and terms of deposits 45 Table 15 Relation between professional, employment and types of 46 deposits Table 16 Relation between professional, employment and terms of 47 deposits Table 17 Reasons for depositors to change banks (having at least two 49 banks at the same time) by gender and marital status viii Table 18 Reasons for depositors to change banks (having at least two 49 banks at the same time) by age Table 19 Reasons for depositors to change banks (having at least two 50 banks at the same time) by education background Table 20 Reasons for depositors to change banks (having at least two 50 banks at the same time) by employment Table 21 Reasons for depositors to change banks (having at least two 51 banks at the same time) by income Table 22 Relation between education background and the factor “to seek 51 for stronger reputation” Table 23 Relation between professional and employment with the factor 52 “to seek for the best/better service” Table 24 Relation between professional and employment with the factor 53 “I was not happy with the service so I switch to another bank” Table 25 Descriptive Statistics of the factors depositors select to answer 53 the question why Table 26 Correlation of the factors depositors select to answer the 54 question why Table 27 Reasons for depositors to select the first banks 57 Table 28 Relation between age range and the factor of “paper and 57 electronic statements” Table 29 Relation between age range and the factor of “security and 58 safe” Table 30 Relation between education background and the factor of 58 “security and safe” ix Table 31 Relation between education background and the factors of 59 “prestigious banks, clear explanation and procedure, banks with branches locate at my convenient place, paper and electronic statements” Table 32 Relation between education background and the factor of 59 “competitive interest” Table 33 Relation between education background and the factor of 60 “paper and electronic statements Table 34 Relation between education background and the factor of “can 60 make deposit/withdrawal flexibly” Table 35 Relation between professional and employment and the factor 61 of “competitive interest” Table 36 Relation between professional and employment and the factor 62 of “prestigious banks” Table 37 Relation between professional and employment and the factor 62 of “security and safe” Table 38 Relation between income and the factor of “paper and 63 electronic statements” Table 39 Relation between income and the factor of “recommendation 63 from friends/relatives” Table 40 Relation between income and the factor of “banks with 64 branches locate at my convenient place” Table 41 Descriptive statistics of factors for depositors’ selection of 64 the First Bank they deposited with Table 42 Correlation of the factors for depositors’ selection of the 65 x first bank they deposited with Table 43 Type of promotion that depositors want to have? 66 Table 44 Type of promotion that depositors want to have first? 67 Table 45 Relation between income and lottery participation 67 Table 46 Descriptive statistics of the promotion kinds depositors want 68 to have Table 47 Correlations of the promotion kinds depositors want to have 68 Table 48 Depositors’ future plan to invest their money 69 Table 49 Relation between marital status with depositors’ plan to 70 deposit foreign currency at banks Table 50 Relation between age range with depositors’ plan to deposit 70 foreign currency at banks Table 51 Relation between income with depositors’ plan to deposit 71 foreign currency at banks Table 52 Relation between income with depositors’ plan to buy gold 71 and save at home Table 53 Descriptive statistics of future investment factors 72 Table 54 Correlation of future investment factors 72 Table 55 Depositors’ willingness to introduce their banks with friends 73 Table 56 Relation between education background with depositors’ 73 willingness to refer banks with their friends. Table 57 Relation between education background with depositors’ 74 willingness to refer banks with their friends. Table 58 Depositors’ acceptance of interest rates banks offer 75 Table 59 Depositors’ evaluation of service quality of banks 76 xi Table 60 Relation between marital status and the rating of service 76 Satisfaction Table 61 Promotion received 78 Table 62 How depositors like received promotion 79 Table 63 Types of promotion depositors received 79 Table 64 Depositors’ selection of promotion ranking the first 79 Table 65 Relation between income and the response to the question: 80 “did you receive any promotion?” Table 66 Relation between age range with the kinds of promotion 80 Received Table 67 Relation between age range and the depositors’ ranking of 81 promotion kinds they like most Table 68 Relation between professional, employment and the 82 depositors’ ranking of promotion kinds they like most Table 69 Relation between income and the depositors’ ranking of 82 promotion kinds they like most Table 70 descriptive statistics of promotion kinds depositors received 83 for making deposits at banks Table 71 Correlation of promotion kinds depositors received for 83 making deposits at banks Table 72 Depositors’ response to the question as keeping money at 84 banks always safe Table 73 Relation between employment with depositors’ perception of 85 the bank safety Table 74 factors that depositors would consider when selecting a bank 87 xii for deposits Table 75 The influencing factor that depositors rank as the first 88 Table 76 Descriptive statistics of the factors depositors would consider 88 Table 77 to select banks for deposits in the next time Correlation of the factors depositors would consider to select 89 banks for deposits in the next time Table 78 Relation between income with prestigious banks 90 Table 79 Relation between education with prestigious banks and 91 security and safety Table 80 Relation between education with competitive interest rates 92 Table 81 Relation between employment with the factor of competitive 93 interest rates xiii LIST OF FIGURES Figure CONTENT Page Figure 1 Conceptual Model of Consumer behavior 9 Figure 2 Conscious Problem Solving and Learning Model of Consumer 10 Behavior Figure 3 28 Conceptual Framework xiv LIST OF APPENDICES Appendix CONTENT page Appendix A.1 List of State Owned Banks (SOBs) as of 30 June 2013 114 Appendix A.2 List of Jointstock Commercial Banks (JSCBs) as of 30 June 115 2013 Appendix A.3 List of foreign banks branches as of 30 June 2013 117 Appendix A.4 List of Joint Venture Banks as of 30 June 2013 120 Appendix A.5 List of 100% owned Foreign Banks as of 30 June 2013 120 Appendix B.1 Distribution of depositors by age 121 Appendix B.2 Distribution of depositors by education background 121 Appendix B.3 Distribution of depositors by Professional and employment 122 Appendix B.4 Distribution of depositors by income 122 Appendix B.5 Distribution of depositors’ first bank selection by gender, 123 marital status and age Appendix B.6 Distribution of depositors’ second bank selection by gender, 123 marital status and age Appendix B.7 Distribution of depositors’ third bank selection by gender, 123 marital status and age Appendix B.8 Distribution of depositors’ fourth bank selection by gender, 124 marital status and age Appendix B.9 Reasons for depositors to select the second banks 124 Appendix B.10 Reasons for depositors to select the third banks 125 Appendix B.11 Reasons for depositors to select the fourth banks 125 Appendix B.12 Descriptive statistics of factors for depositors’ selection of 126 xv the Second Bank they deposited with Appendix B.13 Correlation of the factors for depositors’ selection of the 127 Second bank they deposited with Appendix B.14 Descriptive statistics of factors for depositors’ selection of 128 the Third Bank they deposited with Appendix B.15 Correlation of the factors for depositors’ selection of the 129 Third bank they deposited with Appendix B.16 Descriptive statistics of factors for depositors’ selection of 130 the Fourth Bank they deposited with Appendix B.17 Correlation of the factors for depositors’ selection of the 131 Fourth bank they deposited with Appendix B.18 Type of promotion that depositors want to have second? 132 Appendix B.19 Type of promotion that depositors want to have third? 132 Appendix B.20 Type of promotion that depositors want to have fourth? 132 Appendix B.21 Type of promotion that depositors want to have fifth? 133 Appendix B.22 Depositors’ selection of promotion ranking the second 133 Appendix B.23 Depositors’ selection of promotion ranking the third 133 Appendix B.24 Depositors’ selection of promotion ranking the fourth 134 Appendix B.25 Depositors’ selection of promotion ranking the fifth 134 Appendix B.26 The influencing factor that depositors rank as the second 134 Appendix B.27 The influencing factor that depositors rank as the third 135 Appendix B.28 The influencing factor that depositors rank as the fourth 135 Appendix B.29 The influencing factor that depositors rank as the fifth 136 Appendix B.30 The influencing factor that depositors rank as the sixth 136 Appendix B.31 The influencing factor that depositors rank as the seventh 137 xvi Appendix B.32 The influencing factor that depositors rank as the eighth 137 Appendix B.33 The influencing factor that depositors rank as the ninth 138 Appendix B.34 The influencing factor that depositors rank as the tenth 138 Appendix B.35 The influencing factor that depositors rank as the eleventh 139 Appendix B.36 Relation between age range with the factor suitable fees and 139 charges Appendix B.37 Relation between marital status with the factor of can make 140 deposit/withdrawal flexibly Appendix B.38 Relation between age range with the factor of can make 141 deposit/withdrawal flexibly Appendix B.39 Relation between education with can make 142 deposits/withdrawal flexibly Appendix B.40 Relation between employment with the factor of can make 143 deposits/withdrawal flexibly Appendix B.41 Relation between marital status with the factor of clear 144 explanation and procedure Appendix B.42 Relation between education with the factor of paper and 145 electronic statement Appendix B.43 Relation between employment with the factor of competitive 146 interest rates Appendix B.44 Relation between income with paper and electronic statements 147 Appendix B.45 Relation between age range with the factor of 148 recommendations from friends/relatives Appendix B.46 Relation between employment with the factor of 149 xvii recommendations from friends/relatives Appendix B.47 Relation between income with recommendations from 150 friends/relatives xviii