INTRODUCTION
BACKGROUND OF THE RESEARCH
Dong Nai province, covering an area of 5,097.1 km², comprises 11 administrative units, including Bien Hoa City, the province's political, economic, and cultural hub, Long Khanh Town, and nine districts: Long Thanh, Nhon Trach, Vinh Cuu, Trang Bom, Thong Nhat, Dinh Quan, Tan Phu, Cam My, and Xuan Loc With a population exceeding 2.56 million, the province has a diverse demographic, with 33.23% urban residents and 66.73% rural residents The Dong Nai People's Committee is supported by a network of 35 organizations that offer a variety of free and cost-effective services to the community.
The government, as a large organization, serves various customers, including citizens, businesses, and public and private employees Through its agencies, departments, and ministries, it delivers essential information and services tailored to each group Consequently, the effectiveness of government performance can only be accurately assessed by these customers.
Service quality significantly impacts organizational performance in the public sector, where the primary output is services rather than profit Public organizations must fulfill various roles, including facilitator, pace setter, and socio-economic developer, highlighting the importance of service quality in achieving their objectives (Arawati, Baker & Kandampully, 2007).
The customer ultimately determines the quality of a product, service, or information In the private sector, managers focus on customer loyalty and retention, while in the public sector, citizens and businesses often have no choice but to engage with various organizations, even if their services are delivered inefficiently.
Administrative procedures at government agencies in Vietnam, especially in Dong Nai, are often cumbersome and complex, impacting the management effectiveness of the Dong Nai People's Committee across various levels, from district to local agencies.
Currently, there is a significant number of public complaints regarding delays in services provided by Vietnamese public organizations, as noted by the Dong Nai Department of Internal Affairs (2006) Major newspapers have reported on the dissatisfaction among citizens, highlighting the low quality of services that fail to meet customer expectations This issue is particularly concerning for taxpayers, who anticipate receiving quality services in return for their contributions (Thanh, 2009).
The Dong Nai Department of Internal Affairs has implemented a single window mechanism to streamline administrative procedures; however, this approach has proven ineffective for the Dong Nai People’s Committee in supervising and inspecting these processes As a result, issues such as bureaucracy, corruption, and the arrogant behavior of officials persist, leading to public frustration and diminishing trust in the system.
In the context of bureaucracy and plodding reform, Dong Nai People’s Committee must have an appropriate strategy in order to monitor and manage the public service.
This study serves as a practical guideline for the Dong Nai People’s Committee leaders to enhance the quality of public services, particularly in administrative and transport sectors, to better meet customer needs and increase satisfaction The findings will provide a clear understanding of the service quality components that influence customer satisfaction Additionally, the comparison between public administrative and transport services will identify specific determinants tailored to each context, offering valuable practical implications for improvement.
RESEARCH PROBLEM
Local authorities in Dong Nai are implementing innovative methods to gather community feedback, such as local area forums and citizens’ juries Additionally, many authorities are conducting market research surveys to assess customer satisfaction levels with their services, serving as a valuable initial step in understanding community needs.
Since gaining independence in 1975, Vietnam's public sector has transformed from focusing solely on productivity and efficiency to becoming a facilitator and regulator of private sector economic functions Despite these changes, there has been limited emphasis on applying service quality within public services, highlighting a gap in quality schemes in this sector.
12 | P a g e becoming an integral part of public-service management, their impact on service delivery remains largely unknown (Robinson, 2003).
Recent research on service quality has primarily focused on a dimensional approach, particularly with the development of the SERVQUAL measurement scale by Parasuraman et al in the mid-1980s, which defines quality as the difference between perception and expectation Alternatively, Cronin and Taylor introduced the SERPERF model, which measures service performance based solely on perception While SERVQUAL has faced criticism, it remains one of the most widely used tools across various industries for assessing service quality.
2009) However, SERVQUAL and SERPERF were designed as generic measures of service quality and applied in cross industries, not for any specific field.
Measuring service quality and customer satisfaction in the public sector is a key focus for authorities, yet it remains a challenging endeavor (Corneliu et al., 2010) While there is no universally accepted measurement scale for customer satisfaction in public services, recent studies consistently identify service quality as a crucial factor influencing customer satisfaction (Garcia, 2009) In Vietnam, the relationship between service quality and customer satisfaction has garnered interest among researchers; however, few studies have adapted the SERVPERF model to effectively identify and measure the dimensions of service quality that impact customer satisfaction, limiting the generalizability of findings.
This study aims to investigate the relationship between service quality dimensions, as identified by Parasuraman et al (1985), and customer satisfaction within the public sector, specifically focusing on public administrative services and public transport services By analyzing the impact of these nine dimensions on customer satisfaction, the research seeks to compare how service quality influences satisfaction in both sectors A detailed examination of these concepts will be provided in the literature review section.
RESEARCH OBJECTIVES
According to above discussion, this study is formulated to obtain following objectives:
(1) To test the impact of 9 dimensions (tangibility, reliability, responsiveness, competence, courtesy, credibility, access, communication, and understanding the customer) (Parasuraman et al 1985) on customer satisfaction.
(2) To explore the differences effect of the 9 dimensions on customer satisfaction between two types of public service (public administrative service and public transport service).
RESEARCH METHOD
The research process consists of two stages: the initial pilot study, which utilizes qualitative research methods, followed by the main survey that employs quantitative research techniques.
In qualitative research, the aim is to clarify concepts and interpret measurement scales within the public service context from the customers' perspective Adjustments are made to enhance the effectiveness of these scales The focus-group interview technique is utilized, as it offers valuable historical insights and fosters interaction that enriches the research data (Donald & Pamela, 2006) This method is particularly beneficial for gaining a general understanding of the topic, interpreting existing research findings, and generating new ideas for modifying and adding components Participants in the interviews include individuals who have utilized public services in Dong Nai province within the past three years Consequently, based on the qualitative findings, the measurement scales are refined prior to their application in the main quantitative survey.
This quantitative research conducted in Vietnamese aimed to assess the impact of the nine SERVQUAL dimensions (Parasuraman et al, 1985) on customer satisfaction regarding service quality in both public administrative and public transport services in Dong Nai province A total of 230 customers participated, with 120 providing feedback on public administrative services and 110 on public transport services, all of whom had engaged with these services in the past three years Surveys were distributed randomly, and responses were collected through in-person, mail, or online methods, utilizing a five-point Likert-type scale for ratings.
“strongly agree” (5) to “strongly disagree” (1) Customers rated the level of service quality and their satisfaction within the past three years.
The reliability and validity of measurement scales were assessed through Cronbach’s alpha and exploratory factor analysis Subsequently, multiple regression analysis was employed to interpret the results from both managerial and statistical perspectives, as outlined by Hair et al (2010).
RESEARCH STRUCTURES
This research is organized into five chapters: the introduction, a literature review with hypotheses, research methodology and data analysis, research results, and finally, a discussion of the implications and conclusion.
This chapter presents the research background, research problem, research objectives, research method, and research structure.
This chapter provides a comprehensive review of existing literature on service quality and customer satisfaction within the public sector, establishing a conceptual framework and formulating relevant research hypotheses.
Chapter 3 Research methodology and Data analysis
This chapter outlines the research design and methodology employed in the study, which investigates the connections between nine dimensions of service quality and customer satisfaction in public services in Dong Nai province It also compares these relationships between public administrative services and public transport services The research approach integrates both qualitative and quantitative methods to ensure comprehensive analysis.
This chapter outlines the analysis of the collected data, focusing on the assessment of reliability and validity through Cronbach’s alpha and Exploratory Factor Analysis (EFA) It will subsequently evaluate the hypotheses and examine the influence of demographic variables on customer satisfaction The chapter is structured into four key sections: descriptive analysis, measurement assessment, hypothesis testing, and the impact of demographic factors.
This chapter reinforces the thesis's objectives outlined in the introduction, highlighting the relationship between the findings and their practical applications through proposed managerial strategies It also addresses significant limitations that should be acknowledged and suggests avenues for future research Consequently, the chapter is structured into three key sections: the conclusion, managerial implications, and limitations of the study along with recommendations for further investigation.
LITERATURE REVIEW
INTRODUCTION
This chapter reviews existing literature on service quality and customer satisfaction within the public sector, establishing a conceptual framework and formulating relevant research hypotheses.
LITERATURE REVIEW
Public services are inherently linked to the state's provision of these services, as outlined by the Central Institute for Economic Management (CIEM, 2006) The term "public services" derives from the concept of public commodities, which possess distinct natural characteristics: they cannot exclude anyone from use once created, one person's consumption does not diminish another's, and they persist even if not consumed by some individuals Consequently, public commodities are classified into pure public commodities, which meet all three criteria, and impure public commodities, which fail to fulfill one or more of these characteristics (Kearsey et al.).
The term "public services," initially defined as the provision of impure public commodities, emerged in Europe after World War II Today, the concept of public service has significantly evolved and expanded, reflecting diverse interpretations and approaches.
Public service is defined by administration researchers as the activities conducted by state agencies to fulfill their administrative management functions and ensure the provision of essential services to meet the common needs of society This perspective emphasizes the state's role and responsibilities in supplying public services, viewing them as essential activities carried out by either the state or private sector to benefit society and communities (Curry et al, 1998).
In Vietnam, Article 22, the Law on Governmental Organization (2001) stated:
Ministries and governmental agencies are responsible for managing industries and public services across the nation, emphasizing the state's crucial role in supplying these services to the community However, this does not imply that the state holds a monopoly on public service provision Instead, the state can collaborate with the private sector to share the responsibility of delivering essential services such as healthcare, education, and water supply, promoting a more diverse and efficient service delivery model.
Certain essential services, such as vaccination, firefighting, and water drainage, are crucial for community well-being but often neglected by the private sector due to lack of profitability or insufficient resources The state holds the responsibility to ensure these vital services are provided to the public Additionally, while services like education, healthcare, electricity, and clean water can be offered by private markets, they may result in inefficiencies, social inequality, monopolies, and overpricing Therefore, it is imperative for the state to either directly supply these services or regulate private markets to safeguard the basic rights of its citizens.
Public services encompass a range of types but are unified by their purpose to meet the collective needs and interests of society The state bears the responsibility of ensuring the provision of these services Even when some services are delegated to the private sector, the state maintains a regulatory role to guarantee fair distribution and address market deficiencies.
Public services are essential activities that fulfill the fundamental needs of society, implemented either directly by the state or delegated to the private sector, to ensure social order and equality.
According to the report of CIEM (2006), classification of the public services includes:
- The range of public services: the range of public services varies depending on institutions of different countries, different periods regarding people living standards in
The relationship between public services and economic development levels varies significantly across countries, making it impractical to apply a uniform standard globally For instance, Canada recognizes 34 types of public services, encompassing areas like national defense, security, and socio-economic policies such as job creation and health care Similarly, Sweden emphasizes decentralization in its public services, focusing on providing free welfare services, including unemployment benefits and social allowances Overall, health care and education are universally valued across nations, reflecting their importance in societal development.
A board coverage of public services as mentioned is a common trend of development in long term, but in immediate term, it is just proper to nations at a high development level.
Countries with low development levels, such as Vietnam, should prioritize the state's role in serving society by narrowing the scope of public services to focus on the most urgent needs of the people, ensuring their stability and safety It is crucial to distinguish public service activities from administrative civil authority functions, as outlined in government policies, to eliminate subsidies, streamline the state apparatus, mobilize societal resources, and enhance the quality of public services for the population.
- Categories of public services: public services can be classified based on many different criteria, according to natures of services, or to forms of certain services, etc For instance,
Public services can be classified into three main categories: those directly provided by the state, those supplied by state-owned enterprises, and those offered by non-governmental organizations and the private sector According to the CIEM report (2006), a deeper analysis of public services can be conducted based on the nature and effects of the services provided.
Public administrative services are essential functions of state management designed to meet the needs of citizens These services include direct actions such as issuing permits, certifications, registrations, notarizations, visas, and maintaining resident records It's important to note that in some countries, public administrative services may encompass different activities that do not fall under the broader category of public services.
In Vietnam, some researchers also share this viewpoint.)
Public non-productive services encompass essential social welfare activities, including healthcare, education, culture, science, physical training, sports, insurance, and social security These services are primarily provided by state bodies and organizations, with some aspects being partially socialized.
Public interest services refer to economic activities conducted by enterprises to meet state requirements and serve the community, including essential services like water and electricity supply, environmental sanitation, and social infrastructure Most of these services are provided by state-owned enterprises, particularly in urban areas, covering sectors such as transportation and postal services However, in some localities, private sector involvement is evident in areas like waste collection, environmental sanitation in smaller cities, and pure water supply in rural regions.
2.2.1.3MAJOR CHARACTERISTICS OF PUBLIC SERVICES
According to a paper of CIEM (2006) there are some major characteristics of public service:
Public services are fundamentally designed to serve the community's interests, focusing on social equality and stability rather than economic gains Their primary objective is to enhance the well-being of society, demonstrating that profit motives do not dictate the provision of these essential services.
Public services are designed to meet the needs of all citizens, ensuring equal access regardless of social class or status This commitment to fairness reflects the principles of wise governance, affirming that every individual has the right to benefit from state services without discrimination.
RESEARCH METHODOLOGY AND DATA ANALYSIS
INTRODUCTION
This chapter outlines the research methodology and design employed in the study, which investigates the connections between nine dimensions of service quality and customer satisfaction in public services within Dong Nai province It also compares these relationships between public administrative services and public transport services.
Chapter 3 also mentions about the procedure to analyze the data collected Accordingly,the process includes test of Cronbach’s alpha coefficient of reliability, EFA by SPSS software.
RESEARCH PROCEDURE
The research procedure consists of two stages: a pilot study utilizing qualitative research methods, followed by a main survey employing quantitative research techniques This process is visually represented in Figure 3.1.
In qualitative research, the goal is to clarify concepts and interpret measurement scales within the context of public service from the customers' perspective Adjustments are made to strengthen the scales, utilizing focus-group interviews, a widely recognized technique that offers historical insights and enhances data through participant interaction (Donald & Pamela, 2006) This method proves to be invaluable for enriching research findings.
This research aims to provide a comprehensive understanding of the topic by interpreting existing findings and introducing innovative ideas for enhancing public services The study involved interviewing individuals who have utilized public services in Dong Nai province within the past three years Insights gained from qualitative research led to modifications in measurement scales, which will be utilized in the subsequent quantitative survey.
In a quantitative research study conducted in Vietnamese, a survey was designed to evaluate the impact of the nine SERVQUAL dimensions on customer satisfaction regarding service quality in both public administrative and public transport services in Dong Nai province A total of 230 customers participated, with 120 providing feedback on public administrative services and 110 on public transport services, all of whom had utilized these services in the past three years Participants were randomly selected to complete the survey, which was collected either in person or returned by mail Responses were measured using a five-point Likert scale, ranging from "strongly agree" to assess customer perceptions effectively.
(5) to “strongly disagree” (1) Customers rated the level of service quality and their satisfaction within the past three years The conceptual model consists of 10 components with 38 items.
MEASUREMENT SCALE
The measurement scale for service quality in the public sector was adapted from the work of Parasuraman et al (1985) and refined through qualitative research, resulting in 38 items Additionally, the customer satisfaction scale, derived from Taylor and Baker (1994), was interpreted for the public service context and consists of 3 items Both scales utilize a five-point Likert format, ranging from 1 (strongly disagree) to 5 (strongly agree).
The bureaus have up-to-date equipment.
Their physical facilities are visually appealing.
The appearance of the bureau’s physical facilities is in keeping with the type of services provided.
The staff in bureaus are well dressed and appear neat.
Reli1 When the staff in bureaus promise to do something by a certain time, they do so.
Reli2 When customers have problems, they are sympathetic and reassuring. Reli3 They are dependable.
Reli4 They provide their services at the time they promise to do so.
Reli5 They keep their records accurately.
Resp1 The staff in bureaus tell customers exactly when services will be performed.
Resp2 You always receive prompt service from the staff in bureaus.
Resp3 They are always willing to help customers.
Resp4 They have never been too busy to respond to customer requests promptly.
Comp1 The staff in bureaus have enough knowledge to answer questions
They have enough knowledge and skill to handle document from customer.
The staff are supported by the bureaus to complete their work.
The staff in bureaus have willing attitude
They are polite and courtesy.
Cred1 Customers can trust the staffs in bureaus
Cred2 Customers feel safe when working with the bureaus.
Cred3 Personality of the staff in bureaus make customers feel trustful.
Cred4 Prestige of the bureaus make customers feel trustful.
Acce1 Customers can easily ask for instruction to use service through telephone.
Acce2 It does not take long waiting time for customers to be served.
Acce3 The bureaus are in good location and easy to get there.
Acce4 The bureaus working hour is convenient for customers.
The staff in bureaus explain clearly their services to customers
The bureaus provide fee table to for their service.
The staff in bureaus ensure that all queries and complaints from customers are solved.
Unde1 The bureaus always pay attention to each customer.
Unde2 The staff in bureaus always care for each customers.
Unde3 They understand clearly customers’ requirements.
Unde4 They realize their frequent customers.
Unde5 They always consider customer benefit top priority.
In general, I am pleased with quality of public service.
Quality of public service has been improved significantly in recent times.
Public service outcome meet my demand.
QUALITATIVE PILOT STUDY
Qualitative research aims to clarify concepts and interpret measurement scale items from the customer's perspective, allowing for necessary modifications to enhance the scale's effectiveness This step also opens opportunities to generate new ideas and items that can improve the research model and measurement scale For reference, the measurement scale utilized in this qualitative research is detailed in Appendix 3.1.
The technique employed was the individual interview The participants of interview were the people who have an experience using the public service within the last three years in
The research conducted in Dong Nai province aimed to understand the perspectives of citizens as the primary customers of public services Participants were selected from a list of customers documented by state agencies in the province, ensuring that they had relevant experiences with public service performance.
The interviewers were chosen from both people using public administrative service and public transport service to ensure the generalization of the opinions.
The interview findings revealed a consensus among interviewers regarding the significance of the service quality factors identified in this research's measurement scale, which are essential for achieving customer satisfaction However, certain items within the scale were deemed unsuitable for the context of Vietnam's public transport services and require modifications for better relevance Additionally, the questionnaire's wording needs to be refined to align with the specific types of public services For a detailed overview of the qualitative research results, please refer to Appendix 3.2.
RESEARCH RESULTS
INTRODUCTION
This chapter outlines the analysis of the collected data, focusing on assessing reliability and validity through Cronbach’s alpha and Exploratory Factor Analysis (EFA) It will also examine the hypotheses and the impact of demographic variables on customer satisfaction The chapter is structured into four key sections: descriptive analysis, measurement assessment, hypothesis testing, and the influence of demographic factors.
DESCRIPTIVE ANALYSIS
Out of 230 distributed questionnaires, 225 were returned, yielding a response rate of 90.22% After excluding 27 incomplete or poorly completed responses, 203 usable questionnaires were analyzed Participants included citizens who have utilized public services from various State agencies in Dong Nai province, Vietnam, such as the Dong Nai People’s Committee and the Departments of Planning and Investment, Transportation, and Education and Training The accepted questionnaires adhered to strict criteria, ensuring no more than one missing value and avoiding extreme responses across multiple factors A descriptive analysis of the sample, showcasing diversity in terms of bureau affiliation, gender, age, service usage frequency, and education level, is presented in Table 4.1.
Table 4.1 - Descriptive statistics of the data
Twice 31 15.3 frequency per Three times 25 12.3 month Four times 12 5.9
The scales were reliability tested by Cronbach‘s Alpha coefficient, refined and validated by Exploratory Factor Analysis (EFA) before using the regression analysis to test research hypotheses.
ASSESSMENT OF MEASUREMENT SCALE
4.3.1CRONBACH’S ALPHA COEFFICIENT OF RELIABILITY TEST
The results of Cronbach’s Alpha coefficients for each scale are presented as following table 4.3
Table 4.3 - Cronbach’s Alpha coefficients for each measurement scale
Scale Variance if Item Delected
Cronbach’s Alpha if Item Deleted
Tangibles (Tang1 -> Tang4) Cronbach’s Alpha = 812
Reliability (Reli1 -> Reli5) Cronbach’s Alpha = 859
Responsiveness (Resp1 -> Resp4) Cronbach’s Alpha = 836
Competence (Comp1 -> Comp3) Cronbach’s Alpha = 767
Courtesy (Cour1 -> Cour3) Cronbach’s Alpha = 914
Credibility (Cred1 -> Cred4) Cronbach’s Alpha = 837
Access (Acce1 -> Acce4) Cronbach’s Alpha = 793
Communication (Comm1 -> Comm3) Cronbach’s Alpha = 779
Understanding Customer (Unde1 -> Unde5) Cronbach’s Alpha = 795
Customer Satisfaction (Sati1 -> Sati3) Cronbach’s Alpha = 844
The results demonstrated that all scales met the reliability criteria, with Cronbach’s Alpha values exceeding 60 The Competence measure had the lowest Alpha at 767, followed by the Communication scale at 779, while other scales achieved excellent coefficients above 80 Additionally, the corrected item-total correlations for all scales were above the acceptable threshold of 30.
In this phase of the data analysis, we aimed to examine the dimensions of service quality in the public sector We utilized the Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy to determine if the partial correlations among variables were minimal, with a KMO value between 5 and 1 indicating the suitability for exploratory factor analysis (EFA) Additionally, we conducted Bartlett’s test of Sphericity to assess whether the correlation matrix is an identity matrix; a significant result (p < 05) would suggest that the variables are correlated, confirming the appropriateness of applying EFA.
In this survey, the KMO measure of sampling adequacy suggested that the sample was factorable (KMO=.937) and significant value p Tang3) Cronbach’s Alpha = 806
Empathy (Unde1 -> Unde5 and Cour1 -> Cour3) Cronbach’s Alpha = 897
Access (Acce1 -> Acce4) Cronbach’s Alpha = 774
The revised model and hypothesis
According to the EFA result for one dependent variables and nine independent variables and Cronbach’s Alpha results after excluding unsatisfactory items, the revised model
60 | P a g e variables is present as below These replacement variables were entered into the regression equation at the same time And the results are presented in the next section.
The revised conceptual model linking with 5 dimensions and customer satisfaction in public sector is shown in Figure 4.1.
Figure 4.1 The revised conceptual model
H1 Tangible has a positive effect on customer satisfaction H2
Reliability has a positive effect on customer satisfaction H3
Competence has a positive effect on customer satisfaction H4
Access has a positive effect on customer satisfaction
H5 Empathy has a positive effect on customer satisfaction.
H6 The impact of 5 dimensions on customer satisfaction toward a public service is affected by the type of public service (public administrative service and public transport service)
HYPOTHESES TESTING
A standard multiple regression analysis was conducted to examine the relationship between independent variables—Empathy, Reliability, Competence, Access, and Tangibles—and Customer Satisfaction Pearson correlations were utilized to assess the correlation between these variables, as shown in Table 4.8 The findings indicate that the explanatory variables are not correlated with one another.
Table 4.8 Results of Pearson Correlations
Empathy Reliability Competence Tangible Access
** Correlation is significant at the 0.01 level (2-tailed).
Std Error of the Estimate
1 777 a 604 593 1.48546 2.032 a Predictors: (Constant), Access, Tangible, Competence, Empathy, Reliability b Dependent Variable: Customer Satisfaction
The results of the standard multiple regression analysis reveal an adjusted R Square of 0.593 and a p-value of less than 0.001, indicating that the selected variables significantly predict customer satisfaction Four key factors—tangible, competence, reliability, and access—account for 59.3% of the variance in customer satisfaction Among these, tangible has the highest beta coefficient of 0.264, demonstrating its strongest influence on customer satisfaction, followed by competence at 0.189, reliability at 0.178, and access at 0.145 Empathy, however, shows the lowest contribution with a beta coefficient of 0.038.
Tolerance and VIF values in the Table 4.10 show that do not exist multicollinearity because VIF of all variables are less than 10, and Tolerance of all variables are greater than 0.1
Researcher test histogram and normal probability plot, and they meet the requirement of the regression (see Appendix 4.6).
Table 4.10 Results of Multiple Regression
Standardized Coefficients t Sig Collinearity Statistics
B Std Error Beta Tolerance VIF
The results of hypotheses testing are presented in Table 4.11
Tangible has a positive effect on
Reliability has a positive effect on
Access has a positive effect on
Empathy has a positive effect on
H1: Tangible has a positive effect on customer satisfaction
Table 4.11 reveals a strong positive relationship between tangible factors and customer satisfaction, with an unstandardized coefficient of β = 264 This significant relationship, indicated by a p-value of 000 (p < 0.05), supports the hypothesis H1, concluding that tangible elements positively influence customer satisfaction.
H2: Reliability has a positive effect on customer satisfaction
The results of table 4.11 showed that the unstandardized regression weight of the structural path between reliability and customer satisfaction was positive and significant (β = 178; p = 000 < 0.05) Therefore, H2 was supported.
H3: Competence has a positive effect on customer satisfaction.
The findings in Table 4.11 reveal a positive correlation between competence and customer satisfaction, indicated by a multiple correlation coefficient of β = 189 With a significant p-value of 016, which is less than the threshold of 0.05, the hypothesis H3 is supported This suggests that competence positively influences customer satisfaction.
H4: Access has a positive effect on customer satisfaction
According to the Table 4.11 the relationship between access and customer satisfaction was significant (p = 021, β = 145) Therefore H4 was supported It was concluded that access has a positive effect on customer satisfaction.
H5: Empathy has a positive effect on customer satisfaction
The results of table 4.11 showed that the unstandardized regression weight of the structural path between Empathy and customer satisfaction was not significant (β = 038; p = 265 > 0.05) Therefore, H5 was rejected.
H6: The impact of 5 dimensions on customer satisfaction toward a public service will be affected by the type of public service (public administrative service and public transport service)
The results of testing H6 is presented as below.
4.4.2TESTING MODEL IN PUBLIC ADMINISTRATIVE SERVICE
According to the Figure 4.1, the model construct for public administrative service would be re-written by the formula as follows:
Sati A = β0 + β1Tang + β2Reli + β3Comp + β4Acce + β5Empa + ε
To evaluate how five key dimensions affect customer satisfaction with public administrative services, a multiple regression analysis was conducted The unstandardized beta coefficients were utilized to assess the influence of independent variables—Tangibility, Reliability, Competence, Accessibility, and Empathy—on the dependent variable, Customer Satisfaction.
Table 4.12 Coefficients of the construct for public administrative service
Mod el Unstandardized Coefficients Standardized
From the result of Table 4.12, Competence had strong positive effect on Customer satisfaction with β = 216, then Reliability (β = 198), Access (β = 157), and Empathy (β
= 090) while Tangible had no effect on Customer satisfaction with p-value = 225 > 0.05 The regression equation could be re-written as follows:
Sati A = 232 + 101Tang + 198Reli + 216Comp + 157Acce + 090Empa + ε
4.4.3TESTING MODEL IN PUBLIC TRANSPORT SERVICE
According to the Figure 4.1, the model construct for public transport service would be re-written by the formula as follows:
Sati T = β0 + β1Tang + β2Reli + β3Comp + β4Acce + β5Empa + ε
To assess the influence of five key dimensions on customer satisfaction with public transport services, a multiple regression analysis will be conducted to evaluate the correlation coefficients This analysis will utilize unstandardized beta coefficients to demonstrate how independent variables—Tangibility, Reliability, Competence, Accessibility, and Empathy—affect the dependent variable, which is Customer Satisfaction.
Table 4.13 Coefficients of the construct for public transport service
Mod el Unstandardized Coefficients Standardized
The analysis in Table 4.13 reveals that Tangible factors significantly enhance customer satisfaction, with a strong positive effect (β = 311) Additionally, Reliability (β = 213) and Access (β = 154) also contribute positively to customer satisfaction In contrast, Empathy and Competence show no significant impact, indicated by a β of -.033.
The regression equation could be re-written as follows:
Sati T = 608 + 311Tang + 213Reli + 158Comp + 154Acce - 033Empa + ε
Factor Unstandardized Coefficients Factor’s Involvement
CONCLUSION
This chapter summarizes the hypothesis analysis of the study, utilizing SPSS software for data evaluation Descriptive analysis included frequencies and percentages, while Cronbach Alpha coefficients confirmed the reliability of the measurement scales Inferential statistics facilitated correlation and regression analyses to explore relationships between independent and dependent variables The findings revealed that four variables—tangibility, reliability, competence, and access—significantly influence customer satisfaction, aligning with the theory proposed by Parasuraman et al in Chapter 2 Additionally, customer perspectives on two types of services indicate that the five dimensions affecting satisfaction are influenced by the nature of the public service, specifically distinguishing between public administrative and public transport services.
CONCLUSION AND IMPLICATION
INTRODUCTION
This chapter reinforces the thesis goal outlined in the introduction, highlighting the link between the thesis findings and their practical applications through proposed managerial strategies It also addresses key limitations that must be acknowledged and suggests avenues for future research Consequently, the chapter is structured into three main sections: the conclusion, managerial implications, and the limitations of the study along with recommendations for future research.
DISCUSSION OF FINDINGS
The research is carried out with a sample of 203 citizens who are working or living in Dong Nai province Citizens was drawn from different social classes with a response rate 90.3 percent.
H1: Tangible has a positive effect on customer satisfaction
Tangibles refer to the physical characteristics of a service, including decor, ambiance, technology, and equipment, which influence a public servant's ability to deliver quality services This study highlights that tangible aspects include up-to-date equipment in bureaus, visually appealing physical facilities, and an overall appearance that aligns with the services offered Citizens expect well-maintained physical facilities when engaging with state agencies, particularly due to past experiences with inadequate conditions in many of these agencies.
70 | P a g e facilities, so improving the tangibles factor such as the decor, ambience, technology, and equipment that are viewed as contributing to customer satisfaction
H2: Reliability has a positive effect on customer satisfaction
Reliability in public service refers to a public servant’s capacity to deliver promised services consistently and accurately Key aspects of reliability include consistent performance, dependability, accurate billing, proper record-keeping, and timely service delivery Citizens prioritize finding trustworthy public services to enhance their overall satisfaction and confidence in using these services.
H3: Competence has a positive effect on customer satisfaction.
Competence in the public sector refers to having the necessary skills and knowledge to deliver services effectively This includes the expertise of both contact personnel and operational support staff, as well as the organization's research capabilities Many citizens believe that the proficiency of public servants is crucial for enhancing service quality, making this competence a significant factor influencing customer satisfaction.
H4: Access has a positive effect on customer satisfaction
Access refers to the ease with which the public can contact and engage with public services Key elements of access include availability by phone, minimal waiting times, convenient operating hours, and strategically located service facilities It is evident that individuals prefer to utilize public services in the most convenient manner possible, making access a crucial factor that significantly influences customer satisfaction.
H5: Empathy has a positive effect on customer satisfaction
The study assessed empathy by evaluating efforts to understand customer needs, but found no correlation between empathy and customer satisfaction Key elements of empathy included understanding specific customer requirements, offering personalized attention, and acknowledging regular customers The lack of significance in this factor may stem from customers perceiving such empathetic service as a standard expectation in public services, particularly in administrative and transport sectors, where understanding customer needs is deemed a fundamental aspect of service quality.
H6: The impact of 5 dimensions on customer satisfaction toward a public service will be affected by the type of public service (public administrative service and public transport service)
According to Table 4.12 and 4.13, it could conduct to the following results:
In public administrative services, the tangible factors, such as physical environments and personal appearances, do not significantly impact customer satisfaction (p A = 225 > 0.05) Conversely, in public transport services, tangible elements have a strong positive effect on customer satisfaction (β T = 311, p T = 001 < 0.05) This emphasis on tangible aspects in public transport is likely due to their perceived importance, as daily bus travelers may associate the quality of facilities with their safety, highlighting the necessity for consistent bus maintenance and frequency.
Reliability plays a crucial role in customer satisfaction for public services, as evidenced by significant p-values (p A < 0.05, p T < 0.05) and comparative beta values (β A = 198 < β T = 213) Users of public transport services rated reliability higher than those utilizing public administrative services Key aspects of reliability include timely service delivery, accurate and prompt billing, and dependable staff in resolving service issues.
The study reveals that competence, indicated by β A = 216 (p A = 027) and β T = 158 (p T = 231), shows a significant relationship with customer satisfaction in public administrative services, while it does not correlate with customer satisfaction in public transport services This suggests that citizens value the necessary skills and knowledge in public administrative services, as these competencies positively influence the quality of the services they receive.
Both administrative service customers and transport service customers value the access factor, indicated by p A < 0.05, p T < 0.05, and β A = 157 > β T = 154 This factor encompasses easy accessibility via telephone, minimal waiting times, convenient operating hours, and favorable service facility locations Notably, users of public administrative services rated this factor slightly higher than those utilizing public transport services.
The study found that empathy did not significantly impact customer satisfaction in public transport services, as indicated by a p-value of 549, which is greater than 0.05 However, in the context of administrative services, empathy was deemed important, with a p-value of 035, highlighting its relevance for users in that sector.
Empathy include the level of learning the customer’s specific requirements; providing individualized attention; recognizing the regular customer.
MANAGERIAL IMPLICATIONS
This study reveals that not all dimensions of service quality positively influence customer satisfaction, particularly highlighting that the factor of "Empathy" does not significantly affect customer satisfaction in public service settings.
Enhancing tangible elements is crucial for customer satisfaction, prompting managers to prioritize the upkeep of decor, ambiance, technology, and equipment These factors significantly influence a public servant's capacity to deliver the desired level of service.
Competence plays a crucial role in ensuring customer satisfaction Managers should actively engage with their staff to foster encouragement and provide training opportunities that enhance the necessary skills and knowledge for delivering quality services in the public sector.
Reliability is a crucial factor influencing customer satisfaction, and managers must prioritize this aspect to enhance service quality Services should be delivered on time, billing should be accurate and prompt, and staff should demonstrate honesty when addressing service issues.
Access significantly enhances customer satisfaction, making it essential for managers to prioritize this aspect Ensuring that services are easily reachable by phone, minimizing waiting times, offering convenient hours of operation, and maintaining an accessible service location are all crucial factors that contribute to a positive customer experience.
The study reveals that customer satisfaction in public services is influenced by five dimensions, which vary between public administrative services and public transport services Customers of public transport prioritize tangible aspects, prompting managers to focus on improving facilities, such as comfortable seating and minimizing travel time Conversely, empathy plays a crucial role in customer satisfaction for public administrative services, highlighting the need for staff to maintain a friendly demeanor and address specific customer needs, ensuring service quality aligns with customer expectations.
The objectives of the private sector, such as cost reduction and enhancing service quality, are increasingly aligning with those of the public sector, highlighting the potential for public sector management to learn from private sector practices (Yasin et al., 2001) Emphasizing a customer-oriented approach in public service management is crucial, as the public often compares the performance of public services to that of private enterprises This alignment underscores the importance of service providers in delivering and maintaining high-quality standards, addressing the existing disparity in service performance between the two sectors.
Vietnamese public sector and the resulting public dissatisfaction has instigated government legislation to service sector render public service entities to be customer- oriented.
LIMITATION OF STUDY AND FUTURE RESEARCH
This study has several limitations that affect the reliability of its results and the generalizability of its findings to the broader Vietnamese public service Future research should address these limitations to enhance the validity of the conclusions drawn.
One limitation of this research is the use of a convenient sample of 203 citizens who interacted with public administrative and transport services in Dong Nai over the past three years This sample does not adequately represent the diverse customer base Future studies should consider larger sample sizes to enhance the reliability of the findings and enable more accurate generalizations.
During the EFA analysis, several variables were eliminated due to low factor loadings (below 0.5), significantly reducing the number of variables associated with each factor, and resulting in the complete removal of some factors Consequently, the five dimensions may not effectively measure customer satisfaction Future researchers should identify more suitable variables and conduct a thorough pilot survey to obtain more accurate responses from participants.
The public service encompasses various distinct services, each differing in cost and operational needs It is plausible that the quality of services varies between those that require payment and those offered free of charge, highlighting a significant area for further exploration.
CONCLUSION
Globally, the public sector is recognizing the advantages of implementing service-quality programs This study reaffirms the established connections between five dimensions of service quality and customer satisfaction, emphasizing the importance of customer-oriented strategies to enhance public service delivery Notably, this research is distinguished by its focus on the Vietnamese public service context.
The findings underscore the crucial impact of employee reliability and competence on enhancing customer satisfaction, aligning with previous studies that emphasize the significant short-term and long-term effects of employee attitudes towards customers Additionally, tangible elements—such as decor, ambience, technology, and equipment—play a vital role in shaping customer perceptions of service quality and satisfaction, as highlighted in research by Guiry (1992), Johnston (1995), and Dabholkar et al (2000).
As customers become more discerning and have greater options between private and public services, it is essential for the Vietnamese public service to prioritize service quality as a core element of its management strategy.
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MEASUREMENT SCALE USED IN QUALITATIVE RESEARCH 84
3 Tools of equipment used to provide the service;
4 Physical representations of the service
5 Other customers in the service facility.
5 Performing the service at the designated time.
Responsiveness 1 The willingness or readiness of employees to provide service.
4 Calling the customer back quickly
Competence 1 Possession of the required skills and knowledge to perform the service.
2 Knowledge and skill of the contact personnel
3 Knowledge and skill of operational support personnel.
4 Research capability of the organization.
Customer1 In general, I am pleased with qualityModified from the scale Satisfactionof public service.ofTaylor&Baker
Quality of public service has been(1994); improvedsignificantlyinrecent times.
Public service outcome meet my demand.
Access 1 The service is easily accessible by telephone.
2 Waiting time to receive service is not extensive
4 Convenient location of service facility.
Courtesy 1 Politeness, respect, consideration, and friendliness of contact
2 Consideration for the consumer's property
3 Clean and neat appearance of public contact personnel.
Communication 1 Explaining the service itself;
2 Explaining how much the service will cost;
3 Explaining the trade-offs between service and cost;
4 Assuring the consumer that a problem will be handled.
4 Personal characteristics of the contact personnel;
5 The degree of hard sell involved in interactions with the customer.
1 Learning the customer’s specific requirements;
THE QUALITATIVE RESEARCH FINDINGS
The findings of focus pilot interview got agreements of interviewers on the below contents:
The study's measurement scale effectively identified key factors of service quality in public services that significantly contribute to customer satisfaction However, certain items within the scale were deemed unsuitable for the Vietnamese context, particularly in relation to the country's public transport services To address this, modifications and complementary adjustments were made to enhance the scale's relevance and applicability.
Items modified Explanation Factor: Tangibles
Other customers in the service facility.
Excluded due to it is difficult to understand and not reflect important role about the physical facilities in public service quality.
Modified because it is not realistic in Vietnamese public service Thus, this item is modified to be “They are always willing to help customers.”
Calling customer quickly the back
In the context of Vietnamese public service, it is often impractical for officials to return customer calls Therefore, the statement has been revised to reflect a more accurate portrayal: "They have never been too busy to respond to customer requests promptly."
5 Knowledge and skill of the contact personnel
Excluded due to the item of “Knowledge and skill of the contact personnel” and the item of
“Knowledge and skill of operational support personnel” had similar meanings So, the item of
“Knowledge and skill of the contact personnel” was eliminated.
2 Consideration for the consumer's property
The original wording lacked clarity, making it challenging for customers to understand and assess this aspect of public service Therefore, it has been revised to state, "They are polite and courteous."
3 Clean and neat appearance of public contact personnel
Modified because it is similar meaning with
“They are well dressed and appear neat” in factor tangibles Thus, this item is modified to be “They are friendly”
3 Explaining the trade-offs between service and cost
Excluded due to it is impossible for their staffs to explain the trade-offs between service and cost because the cost is in the regulations.
5 The degree of hard sell involved in interactions with the customer
Excluded due to it is not realistic in Vietnamese public service.
Factor: Understanding/ knowing the customer
They always care for each customers.
The interviewees suggested to add two new items related to the factor of Understanding customer Two additional items are stated in this scale.
They always consider customer benefit top priority.
QUESTIONNAIRE
As a student at the International School of Business (ISB) at the University of Economics HCM City (UEH), I am conducting research on service quality and customer satisfaction in public services in Dong Nai Your insights are invaluable to my study, and I kindly ask you to take a moment to answer a few questions Please note that there are no right or wrong answers; every opinion contributes significantly to my research I sincerely appreciate your cooperation.
Please give your agreement level about the below statements in the public service that you have experience working within the last 3 years.
Please circle your suitable choice for the agreement level:
I Within the last 3 year, do you have an experience working with the public service at any agencies in Dong Nai province?
If YES please answer the following questions.
II How often do you use this service per month?
No Statement Level of agreement
1 The bureaus have up-to-date equipment 1 2 3 4 5
2 Their physical facilities are visually appealing 1 2 3 4 5
3 The appearance of the physical facilities of these bureaus is in keeping with the type of services provided.
4 The staff in bureaus are well dressed and appear neat 1 2 3 4 5
5 When the staff in bureaus promise to do something by a certain time, they do so 1 2 3 4 5
6 When customers have problems, they are sympathetic and reassuring 1 2 3 4 5
8 They provide their services at the time they promise to do so 1 2 3 4 5
9 They keep their records accurately 1 2 3 4 5
10 The staff in bureaus tell customers exactly when services will be performed 1 2 3 4 5
11 You always receive prompt service from the staff in bureaus 1 2 3 4 5
12 They are always willing to help customers 1 2 3 4 5
No Statement Level of agreement
13 They have never been too busy to respond to customer requests promptly 1 2 3 4 5
14 When receiving document, the staff in bureaus have enough knowledge to answer questions from customer.
15 They have enough knowledge and skill to handle document from customer 1 2 3 4 5
16 The staff are supported by the bureaus to complete their work 1 2 3 4 5
17 The staff in bureaus have willing attitude 1 2 3 4 5
18 They are polite and courtesy 1 2 3 4 5
20 Customers can trust the staffs in bureaus 1 2 3 4 5
21 Customers feel safe when working with the bureaus 1 2 3 4 5
22 Personality of the staff in bureaus make customers feel trustful 1 2 3 4 5
23 Prestige of the bureaus make customers feel trustful 1 2 3 4 5
24 Customers can easily ask for instruction to use service through telephone 1 2 3 4 5
25 It does not take long waiting time for customers to be served 1 2 3 4 5
No Statement Level of agreement
26 The bureaus are in good location and easy to get there 1 2 3 4 5
27 The bureaus working hour is convenient for customers 1 2 3 4 5
28 The staff in bureaus explain clearly their services to customers 1 2 3 4 5
29 The bureaus provide fee table to for their service 1 2 3 4 5
30 The staff in bureaus ensure that all queries and complaints from customers are solved 1 2 3 4 5
31 The bureaus always pay attention to each customer 1 2 3 4 5
32 The staff in bureaus always care for each customers 1 2 3 4 5
33 They understand clearly customers’ requirements 1 2 3 4 5
34 They realize their frequent customers 1 2 3 4 5
35 They always consider customer benefit top priority 1 2 3 4 5
36 In general, I am pleased with quality of administrative service 1 2 3 4 5
37 Quality of administrative service has been improved significantly in recent times 1 2 3 4 5
38 Administrative service outcome meet my demand 1 2 3 4 5
For classification purpose, please provide some information about yourself:
Thank you very much for your cooperation!
Bien Hoa City Department of Taxation
Long Khanh Town Department of Statistics
Nhon Trach District The Provincial Treasury
Long Thanh District State Owned Bank
Trang Bom District The Provincial Armed
Thong Nhat District Public Security
Cam My District Authority of Industrial
Dinh Quan District Department of Customs
ORGANIZATIONAL CHART OF DONG NAI PEOP LE’S
The Departments of Planning and Investment, Foreign Affairs, Education and Training, Justice, Public Post and Telecom, Trade, Science and Technology, Construction, Agriculture and Rural Development, Banking, and Natural Resources play crucial roles in the governance and development of the region Each department is responsible for specific areas that contribute to the overall economic and social progress, ensuring effective management and strategic planning across various sectors.
Department of Industry Department of Labor, Invalids & SocialDepartment of Department of Public Health
FIRST TIME RUNNING- EIGENVALUES
Component Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %
Extraction Method: Principal Component Analysis.
FIRST TIME RUNNING-FACTOR LOADING
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 16 iterations.
SECOND TIME RUNNING- EIGENVALUES
Component Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %
Extraction Method: Principal Component Analysis.
SECOND TIME RUNNING- FACTOR LOADING
Understand Customer 5 669 Understand Customer 1 547 Understand Customer 3 506 Reliability 1
Extraction Method: Principal Component Analysis
Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 15 iterations.
THE EFA IMPLEMENTATION OF DEPENDENT VARIABLE (CUSTOMER SATISFACTION)
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Approx Chi-Square Bartlett's Test of Sphericity df
Component Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative %
Extraction Method: Principal Component Analysis.
891 872 857 Extraction Method: Principal Component Analysis. a 1 components extracted.
CHARTS OF TESTING HYPOTHESES
Figure 4.6.1 Histogram of Customer Satisfaction
Figure 4.6.2 Normal P-P Plot of Customer Satisfaction