Factors Affect Customer Trust for Restaurant in Viet Nam

1 Factors Affect Customer Trust for Restaurant in Viet Nam Consultant: DR PHAM THI LIEN Email: Lienpt@hotmail.com NGUYEN THI HOAI LINH Email: hoailinhlinh176@gmail.com NGUYEN MINH TAN Email: HA LAM PHU Email: tony.nguyenvnese@gmail.co halamphu@gmail.com m NGUYEN TRUONG SON Email: CHU HA PHUONG Email: sonnt23397@gmail.com phuongchun804@gmail.com INFORMATION OF THE GROUP LEADER I Student profile − − − − − − − − Full name: Nguyen Thi Hoai Linh Date of birth: 17/06/1997 Place of birth: Hà Nội Class: IB2015F Program: International business Address: Dac So Village, Hoai Duc District, Hanoi City Phone no.: 0982752015 Email: hoailinhlinh176@gmail.com II Academic results (from the first year to now) Academic year Overall score Academic rating The first year 2.8 Fair The second year 3.04 Fair The third year 3.41 Good Now 3.55 Good III Other achievements: − − − − Good 2nd grade scholarship, semester I, 2017-2018 school year Good 3rd grade scholarship, semester II, 2017-2018 school year Outstanding student, 2017-2018 school year Good 2nd grade scholarship, semester I, 2018-2019 school year Hanoi, May 5th , 2019 Advisor’s signature Group leader Pham Thi Lien Nguyen Thi Hoai Linh CONTENTS Abstract CHAPTER INTRODUCTION 1.1 Background to the research problem 1.2 Research scope 1.3 Research objectives 1.4 Research design 1.5 Contribution of the research 1.6 The structure of the research CHAPTER LITERATURE REVIEW 2.1 Food quality 2.2 Service quality 2.3 Restaurant location 2.4 Restaurant environment 2.5 Brand reputation 2.6 Customer trust 2.7 Previous research CHAPTER RESEARCH HYPOTHESIS & RESEARCH MODEL 3.1 Relationship between food quality and customer trust 3.2 Relationship between service quality and customer trust 3.3 Relationship between restaurant location and customer trust 3.4 Relationship between restaurant environment and customer trust 3.5 Relationship between brand reputation and customer trust 3.6 Research model 3.7 Measurement CHAPTER RESEARCH METHOD 4.1 Instrument 4.2 Data collection 4.3 Data analysis procedure CHAPTER DATA ANALYSIS & HYPOTHESE TESTING 5.1 Descriptive analysis 5.2 Reliability of the instrument 5.3 T-Test and ANOVA result 5.4 Correlation & Regression analysis CHAPTER RECOMMANDATION & CONCLUSION 6.1 Summary of results 6.2 Recommendation 6.3 Limitations & Implications future research 6.4 Conclusion Abstract Restaurants are the remarkable industry in service and hospitality sector In order to be sustainable development in this industry, restaurants must build trust for customers The study aims to illustrate the most influential and significant factors that affect the customers’ trust in the restaurants By finding the most influential factors, the restaurants’ manager makes their effective strategies to get the maximum profit, the attraction of the customers This study is to examine the influences of food quality, service quality, restaurant location, restaurant environment, brand reputation to customer trust for restaurants in Vietnam A questionnaire-based survey was distributed to about 300 customers served at restaurants The data collected (197 valid questionnaires) were analyzed using SPSS 22.0 The findings demonstrated that brand reputation and restaurant environment have a positive influence on customer trust In light of the results of the study, it is that manager savvy the importance of brand reputation and restaurant environment for customer's trust to build appropriate strategies to help the restaurant develop sustainably Key Words: Food quality, service quality, restaurant location, restaurant environment, brand reputation, customer trust4 CHAPTER INTRODUCTION 1.1 Background to the research problem Nowadays, the service industry is growing The sector accounts for a high proportion of the gross domestic product (GDP) of many industrialized countries Service sector attracts more and more workers, creates more jobs, and makes a vital contribution to improving people's lives It brings a huge income for the economy Therefore, service plays an important role in the economy In which, the restaurant industry is a typical sector Under the changing environment and improving living standard, competition is more and more increasing Organizations have realized that they are facing an expanding economic system with growing markets, and barriers to attracting more customers In order to effectively operate restaurants, leaders had to understand the characteristics of the business environment Among market factors, customer trust is extremely important A survey of Golin & Harris showed that 39% of respondents said they would start or return to shopping, dealing with a company because of their trust or credibility of that company; 53% the rest respondents said they would cease, cut or switch to dealing with competitors when they felt concerned about the issue of trust While trust creates many benefits for businesses, doubt or distrust causes no less loss The market is on a huge competition, under those pressures, the quality factor is the core, the necessary condition but not enough Enterprises need to make differentiation and impression by their own "mind" in brand value and products 1.2 Research scope Our research focuses on restaurants in Vietnam because Vietnam is a developing country The economic growth is relatively stable and the service industry has important roles in the economy According to the General Statistics Office of Vietnam (2018), economic growth in 2018 reached 7.08% compared to 2017 In which, the service sector accounted for 42.7%, increased 7.03% compared with the previous years The economic structure of Vietnam continues to shift positively according to the trend of reducing the proportion of agriculture, forestry, and fisheries; increase the share of industry, construction and service industry That is also the reason why the service industry is concentrated to develop Vietnam is a fledgling market and there are many opportunities to develop, but there are still many challenges because of the variety of local dishes, widely sold at very reasonable prices The competition in this sector is fierce and the level of consumption is high The restaurant sector attracts many domestic and foreign investors However, there are many famous brands in the market They are local and international firms To reduce the failures for new investors and attract more customers, they have to clearly understand the business environment, customer need, and customer trust 1.3 Research objectives In line with the background and the scope of the study mentioned above, the objectives of research are the following: To examine demographic factors affects customer trust To investigate factors affect customer trust for restaurant To test the relationship between factors and customer trust To identify the most significant factors affect customer trust These general research aims are transformed into research hypotheses to solved and explained in the design later in the study 1.4 Research design This section introduces the research design for the study with full details provided in chapters 2,3,4,5, and Quantitative method used This research started with literature review (Chapter 2) to clarify problem and to gain background information about the research problem Research hypotheses and research model (Chapter 3) generated from the literature review part By using the questionnaire survey, data collected from customers in Vietnam This research did not target any specific objectives to create diversity for results Data collection and data analysis show in chap and The survey data was analyzed by using SPSS 22.0 From the analysis results, conclusion and recommendation proposed in chapter 1.5 Contribution of the research This research should, therefore, make contributions as follows: Establishing and testing a research model of factors (food quality, service quality, restaurant location, restaurant environment, and brand reputation) affect customer trust Testing the relationship among factors and customer trust Exploring which factors have the most significant impact on customer trust Thus, helping management focuses on the important resources and capabilities in gaining profits while reducing wastage When understanding factors affects customer trust, the manager can build an appropriate strategy for the company to attract more customers and exist in the long run in the market 1.6 The structure of the research This research provides insights on factors affect customer trust It divides into six chapters, including an introduction, a literature review chapter, and three chapters concerning the study of the research and a recommendation & conclusion Chapter is introduction It provides information about research background, research scope, research objectives, research design, the contribution of the research, and the structure of the research Chapter reviews literature review In this chapter, the theory of factors and customer trust Factors include food quality, service quality, restaurant location, restaurant environment, and brand reputation Definitions, elements/ perspectives were presented through reviewing previous studies Chapter discusses in detail the research hypotheses and research model Detailed research issues, related hypotheses and research questions with explanation are provided They were established based on the literature review and the results of previous research After discussing the detailed research model, the development of the questionnaire and data collection processes are described Chapter is research method This chapter includes instrument, data collection, and data analysis procedure Chapter provides all research questions and hypotheses testing results This chapter gives answers to the research problem from data analysis It includes steps in analysis procedure (descriptive analysis, reliability of the instrument, T-Test and Anova results, and correlation & regression analysis) Chapter is the final chapter It provides a summary of results, recommendation, limitation and implication future research, and conclusion CHAPTER LITERATURE REVIEW 2.1 Food quality Ryu and Han (2010) Namkung and Jang (2007) demonstrated that food quality must be evaluated the presentation, menu item variety, healthy options, taste, freshness, and temperature Good quality of food and beverages can influence trust and retaining the consumers who most probably enjoy having delicious food According to Ryu and Han (2010), customers’ perceived food is more relevant to delicious, nutritious, and visually attractive of the food According to Andaleeb and Conway’s (2006) study, food quality had a strong effect on the relationship between restaurant consumers and the restaurant In many studies, food quality is rated as one of the most essential determinants of consumers’ patron of the restaurant (Andaleeb and Conway, 2006) 2.2 Service quality Service quality was defined by researchers in many different ways Bitner, Boms and Mohr (1994) determined service quality as the consumers overall impression of the relative inferiority or superiority of the organization and its services Gronroos (1984) also defined that service quality is the outcome of an evaluation process, where the consumer compares his expectations with the service he has received Service quality is one of the important factors of consumer satisfaction and it will directly impact the organizational success especially in the service industry such as restaurant industry (Tat et al, 2011) According to Akbaba (2006), service quality is the result of a comparison established between the customers’ expectation about the service and their perception of the actual services or the way such services are being provided In addition, Ha and Jang (2010) suggested that the service quality provided by employees is a fundamental and critical factor in the restaurant business Ha and Jang (2010) also stated that the customer will tend to revisit the restaurant when they perceived a restaurant to be high quality of service Zeithamal, Berry, and Parasuraman (1996) said that service quality was only one aspect of consumer satisfaction, and the measurement of consumer satisfaction includes other criteria They encompassed product quality, the price or cost, and personal factors 2.3 Restaurant location Parsa, Gregory, and Terry (2010) demonstrated the success or failure of a restaurant can be influenced by the choice of location Location is a key factor and the success of a location base on its physical site, and its surrounding demographics In other words, a wonderful location depends on geographic, demographic, and psychographic factors Any changes in geographic or demographic/psychographic factors of a specific location could importantly influence the attractiveness of a location Eze, Ejikeme and Ufot (2015) also asserted that a better location gives organizations greater opportunities of attracting favorable environmental opportunities, faster goal achievement, profitability, successful operations and overall growth, etc 2.4 Restaurant environment Kotler (1973) illustrated that the physical environment such as atmosphere can be more important than the product itself (e.g., foods and services) in purchasing decision making in some situations In many previous studies, researchers have identified the significant factors of the physical environment, such as décor and artifacts, spatial layout, and ambient conditions that are particularly appropriate to the service industry (e.g., Nguyen & Leblanc, 2002; Raajpoot, 2002; Wakefield & Blodgett, 1999) Therein, décor and artifacts contribute to the attractiveness of the physical environment (Wakefield & Blodgett, 1994); spatial layout refers to the arrangement of objects, such as furniture and equipment, according to the needs of the service delivery process (Nguyen & Leblanc, 2002); ambient conditions are intangible background characteristics that generally have a subconscious effect on customer perceptions and responses to the environment (Nguyen & Leblanc, 2002) These three factors have been frequently included in most research related to the physical environment and are the most adequate dimensions of the physical environment for customer behavior study in service settings (Nguyen & Leblanc, 2002; Raajpoot, 2002; Wakefield & Blodgett, 1999) 2.5 Brand reputation Brand is name, logo, trademark, and symbol of the firm It reflects the spirit and soul of an organization Brand presents loyalty of end users After continuous usage of brand, consumers feel it as part of them (Aaker, 1991) Reputation means trustworthiness, integrity, and honesty It can be seen from past experience of the third party’s trustworthiness, integrity, and honesty Brand reputation can be judged from consumer opinion, comments, estimation, and beliefs; if people are suggesting the usage of a brand then it is considered as a sign of good reputation 2.6 Customer trust In business trust is viewed as one of the most relevant antecedents of stable and collaborative relationships Researchers had established that trust is essential for building and maintaining long-term relationships (Rousseau, Sitkin, Burt, & Camerer, 1998; Singh & Sirdeshmukh, 2000) Morgan and Hunt (1994) stated that trust exists only when one party has confidence in an exchange partner’s reliability and integrity While defining trust Moorman, Deshpande, and Zaltman (1993) referred to the willingness to rely on an exchange partner in whom one has confidence According to Lau and Lee (1999), if one party trusts another part that eventually engenders positive behavioral intentions towards the second party Sanchez-Franco (2009) showed that trust is a psychological state which creates confidence of one person in another person Trust builds when the customer has confidence in a service provider's reliability and integrity (Kim, Kim, & Kim, 2009) In addition, trust makes customers comfortable and in turn, increases the efficiency of relational exchange (Hyun, 2010) In the restaurant industry, trust has been defined as a factor which determines the quality of the relationship between a firm and its customers (Hyun, 2010; W Kim, Lee, & Yoo, 2006; Meng & Elliott, 2008) Consumers' trust in service providers can help the maintenance of the long-term relationship (Gefen, 2000) Customer’ trust has strong relationship with restaurant The brand is as the consumer’s partner in a long-term relationship (Fournier, 1998) And trust is a key variable in the development of an enduring desire to maintain a relationship in the long term, for example with a brand (Morgan and Hunt, 1994) Thus, trust of voice to build up their reputation With weaker finance restaurant, they can show backstage to see the process of creating dishes to make customer trust For creating attractive environment, they need to define the characteristic of restaurant For example, if your restaurant specializes in country dishes, you design restaurant with country style and background music is suitable for that characteristic It will create the differentiation of your restaurant with others You can use hammock chair and customize it to make customer comfortable when they sit 6.3 Limitation and future research There are two limitations to this study Firstly, the number of participants is a small sample, just 197 valid respondents Secondly, the age of the participants is mostly from 18 to 25 years old Therefore, the result only reflects a part of the customer's opinion First, further research is needed to validate and generalize the findings to broader settings The research could be replicated in other contexts such in developed countries and in developing countries For future research, the researcher can collect more data to have additional opinions and a more multi-dimensional perspective on this topic Further research could also look at the interactions of the factors affect customer trust and compare them For examples, different contexts, different factors, different respondents, different model provide different results Moreover, further research can investigate factors influence customer trust through mediator variables such as word of mouth, customer satisfaction There are many different ways of using software to analyze collected data such as SPSS 22, AMOS 6.4 Conclusion We that research with objective is that we want to investigate factors affect customer trust for restaurant and identify the most significant factors affect trust to improve restaurant industry in Viet Nam The reason that restaurant industry in Viet Nam is still growing and many models of restaurant not success To that objective, the first we found previous research to find appropriate factors which can affect restaurant industry It is food quality, service quality, restaurant location, restaurant environment, and brand reputation After finding the suitable factors, we conducted questionnaire to ask customer’s opinion about that factors We tried to collect data as much as possible to give good result The important part is that we establish model of research and test factors according to this model We analyzed data and found out that brand reputation is the most significant affect customer trust and the follower is environment factor In addition, the high school graduate has the highest trust in restaurant The result makes us a little bit surprised when food quality has non-significant effect on customer trust In the next part, we give some recommendations for restaurants to contribute to find the right direction to quality of restaurant industry In conclusion, we hope our research will be helpful for restaurant industry in general and specific restaurant in particular We want to contribute to the development of restaurant in Viet Nam This research has some limitation which we mentioned in previous part We hope the future research will draw experience from our research to better In overall, our research performed the objective which set at the beginning and partly had useful information for CEO, manager of restaurant at that moment and in the future APPENDIX Questionnaire used for the study English version SURVEY FACTORS AFFECT THE TRUST OF CUSTOMERS FOR RESTAURANT Dear ladies and gentlemen, We are students from Vietnam National University, International School; we are conducting scientific research with topics Factors affect the trust of customers for restaurant Your comments about the restaurant that you are using the service are extremely valuable and important information for the success of the study We hereby assure you that your opinions are for educational and research purposes only and are I strictly confidential Look forward to the attention and help of ladies and gentlemen Sincerely thank! Part 1: Detailed questions Have you recently used services in a restaurant? Yes No If yes, please answer following questions Please circle the number corresponding to the level of your consent for each sentence Strongly disagree Disagree Neutral Agree Strongly agree Food quality Statements The food was delicious Strongly disagree Disagree Neutral Agree Strongly agree The food was nutritious The restaurant offered a variety of menu items The restaurant offered fresh food 5 5 The food presentation was visually attractive The smell of the food was enticing Service quality Statements Employees served me food exactly as I ordered it Employees provided prompt and quick service Employees are always willing to help me Strongly disagree Disagre e Neutral Agree Strongly agree 5 Employees made me feel comfortable in dealing with them Strongly disagree Disagre e Neutral Agree Strongly agree 5 5 Strongly disagree Disagre e Neutral Agree Strongly agree 5 5 5 5 Lighting creates a warm atmosphere Background music is pleasing Temperature is comfortable Restaurant location Statements This restaurant is located in the busy area The location of this restaurant is suitable in such a way that allows me to access it easily This restaurant is located in a clean area This restaurant is located in a convenient area in which the parking is available to customers The restaurant is located in a visible place making it easy for others to see it Restaurant environment Statements  Decors and artifacts Paintings/pictures are attractive Plants/flowers make me feel happy Ceiling decors is attractive Wall décor is visually appealing Colors used create a warm atmosphere Furniture (e.g., dining table, chair) is of high quality  Spatial layout Overall, layout makes it easy for me to move around Table/seating arrangement gives me enough space Seating arrangement makes me feel comfortable  Ambient conditions Aroma is enticing Strongly disagree Disagree Neutra l Agree Strongly agree 5 5 5 Brand reputation Statements  Brand prestige This brand is very prestigious This brand has high status This brand is very upscale  Perceived risk I need a lot more information about this brand before would dine out at the restaurant I never know how good this brand will be before dine out at the restaurant To figure out what this brand is like, I would have to try it several times Customer trust Strongly disagree Disagre e 2 I have confidence in this restaurant I think this restaurant has high integrity Statements I think this restaurant is reliable II Part 2: Personal information Neutral Agree Strongly agree 5 Gender: CÁC YẾU TỐ ẢNH HƯỞNG ĐẾN NIỀM TIN CỦA KHÁCH HÀNG ĐỐI VỚI NHÀ HÀNG Male Female Age: 18-25 25-30 31-40 41-50 >51 Married Yes No Education High School Graduate Bachelor's Degree Graduate Degree Thank you! III Vietnam version BẢNG KHẢO SÁT H Kính chào Anh/ Chị, Chúng sinh viên trưởng Khoa Quốc Tế - Đại Học Quốc Gia Hà Nội Chúng thực nghiên cứu khoa học với đề tài yếu tố ảnh hưởng đến niềm tin khách hàng nhà hàng Những ý kiến đống góp Anh/ Chị nhà hàng mà Anh/ Chị sử dụng dịch vụ thông tin vô quý giá quan cho thành công nghiên cứu Chúng xin đảm bảo ý kiến Anh/ Chị dung cho mục địch học tập, nghiên cứu hồn tồn giữ bí mật Rất mong nhận quan tâm giúp đỡ Anh/ Chị Xin chân thành cảm ơn! Phần 1: Câu hỏi chi tiết Gần bạn có đến nhà hàng sử dụng dịch vụ khơng? Có Khơng Nếu có, vui lòng trả lời câu hỏi sau Vui lòng khoanh tròn vào số tương ứng với mức độ đồng ý từ thấp đến cao cho mối câu sau: K T Đ H Nhân viên làm bạn cảm thấy thoải mái Chất lượng thực phẩm Câu hỏi n ngon Thức ăn bổ dưỡng Nhà hàng phục vụ thức ăn tươi ngon 1 K Câu hỏi Mùi vị ăn hấp dẫn Nhà hàng đặt khu vực sầm uất Lối vào nhà hàng dễ dàng Khu vực xung quanh nhà hàng 2 Rất dễ 2dàng để tìm đường nhìn thấy nhà hàng Chất lượng dịch vụ n viên phục vụ yêu cầu H K 2 2 H K 2 Chỗ để xe nhà hàng Món ăn trang trí bắt mắt Câu hỏi Địa điểm nhà hàng H Nhà hàng cung cấp thực đơn đa dạng Không gian nhà hàng H K Câu hỏi Trang trí tạo vật n viên phục vụ lúc nhanh n viên ln sẵn lịng giúp đỡ 1 Trang trí nhà hàng bắt mắt 2 Thiết kế nhà hàng làm tâm trạng cảm thấy tốt Trang trí trần nhà bắt mắt 2 2 Trang trí tường tuyệt Màu sác nhà hàng tạo nên không gian ấm áp Chất lượng nội thất (bàn, ghế, …) tốt 1 Tôi cần nhiều thông tin nhà2 hàng trước ăn Tôi không cần thông tin nhà hàng trước ăn Tôi sắn sang thử ăn nhà hàng vài lần để xem có tốt hay khơng khơng gian Khơng gian trí giúp tơi di chuyển cách thoải mái Bàn ghế, chỗ ngồi xếp làm cảm thấy không bị chật chội Sắp xếp chỗ ngồi làm cảm thấy thoải mái 2 2 Mức độ tin tưởng khách hàng khác Ánh sánh nhà hàng tạo nên khơng khí ấm áp Nhạc phù hợp Nhiệt độ nhà hàng thích hợp Câu hỏi Tôi nghĩ nhà hàng đáng tin 2 Tơi có niềm tin vào nhà hàng Hương thơm dễ chịu Danh tiếng nhà hàng Tôi nghĩ nhà hàng có tính trung thực cao Câu hỏi H K 2 K IV Phần 2: Thông tin cá nhân Giới tinh: thương hiệu Nhà hàng vơ uy tín Đây nhà hàng đánh giá cao địa phương Đây nhà hàng cao cấp H 2 N a m N ữ Độ tuổi: 18 25 tu ổi 25 - 30 tu ổi 31 40 tu ổi 41 50 tu ổi >5 tu ổi Tình trạng nhân C ó K hơ ng Trình độ học vấn Cấ p Đ ại họ c/ ca o đẳ ng Sa u đạ i họ c Chân thành cảm ơn dành thời gian hoàn thành bảng khảo sát Chúc Anh/ Chị ngày làm việc tốt đẹp! 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