Factors of service quality affecting customer satisfaction of highlands coffee in ho chi minh city

MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM HO CHI MINH CITY UNIVERSITY OF BANKING  NGUYEN THI THU THAO FACTORS OF SERVICE QUALITY AFFECTING CUSTOMER SATISFACTION OF HIGHLANDS COF[.]

MINISTRY OF EDUCATION AND TRAINING THE STATE BANK OF VIET NAM HO CHI MINH CITY UNIVERSITY OF BANKING - - NGUYEN THI THU THAO FACTORS OF SERVICE QUALITY AFFECTING CUSTOMER SATISFACTION OF HIGHLANDS COFFEE IN HO CHI MINH CITY GRADUATE THESIS MAJOR: BUSINESS ADMINISTRATION CODE: 7340101 SUPERVISOR: Ph.D NGUYEN VAN THUY HO CHI MINH CITY, 2022 DECLARATION I declare that the thesis “Factors of service quality affecting customer satisfaction of Highlands Coffee in Ho Chi Minh City” is the result of my own research process Except for references from other research works as stated in the thesis, the survey data and the results of this thesis are honest and have not yet been published in any research works before HCMC, 18th August 2022 Author Nguyen Thi Thu Thao ACKNOWLEDGE I am willing to take this opportunity to acknowledge some individuals who have supported me to accomplish my thesis First and foremost, I would like to express my deepest acknowledge to my supervisor, Ph.D Nguyen Van Thuy, lecturer at Ho Chi Minh City University of Banking During the process of completing my thesis, he always gave me his valuable advice and recommendation His encouragement, suggestion and advice are always greatly valued and contributed to the success of this thesis Additionally, I would like to express my sincere appreciation to the professors and lecturers at the University of Banking for their guidance during my academic years there The knowledge and skills I have accumulated, have helped me complete this thesis Finally, I would like to express thanks to my family and friends, who always motivate and support me They not only support and give advice for me during the period of completing the thesis, but they are also a source of motivation and strength in my life ABSTRACT The research aims to identify service quality factors that affect customer satisfaction of Highlands Coffee’s customers in Ho Chi Minh City Based on the theories of customer satisfaction, service quality and previous studies, this research is conducted using both qualitative and quantitative methods The qualitative method aims to complete the measurement scales The quantitative method with the data analysis techniques such as descriptive statistics, Cronbach's Alpha, EFA, regression and ANOVA According to the analysis of data from 160 participants in Ho Chi Minh City show that customer satisfaction when using Highlands Coffee services is impacted by three factors include: Serving competence, Tangibles and Price policy The Serving competence factor significantly affects customer satisfaction with Highlands Coffee services while the Price policy factor slightly impacts customer satisfaction with Highlands Coffee services The research also offers implications to enhance customer satisfaction for the managers of Highlands Coffee in specific and for the coffee businesses in general Keywords: Serving competence, Tangibles, Price policy, Customer satisfaction, Highlands Coffee, service quality i TABLE OF CONTENTS ABSTRACT i TABLE OF CONTENTS ii LIST OF ABBREVIATIONS v LIST OF FIGURES vi LIST OF TABLES vii CHAPTER 1: INTRODUCTION 1.1 Statement of the problem 1.2 Research objectives 1.2.1 Research aim 1.2.2 Specific objectives 1.3 Research questions 1.4 Research subject and scope 1.4.1 Research subject 1.4.2 Research scope 1.5 Research methods 1.6 Thesis structure 1.7 Summary CHAPTER 2: LITERATURE REVIEW 2.1 Basic concepts 2.1.1 Customer satisfaction 2.1.2 Service quality 2.1.3 The relationship between service quality and customer satisfaction 11 2.2 Literature review 12 2.2.1 SERVQUAL Model 12 2.2.2 Empirical Research 14 2.2.3 About Highlands Coffee 19 2.3 Hypotheses and conceptual model 22 2.3.1 Hypotheses 22 2.3.2 Conceptual model 25 ii 2.4 Summary 26 CHAPTER 3: METHODOLOGY 27 3.1 Research process 27 3.2 Building the scale 29 3.2.1 The scale of reliability (REL) 30 3.2.2 The scale of responsiveness (RES) 31 3.2.3 The scale of assurance (AS) 31 3.2.4 The scale of empathy (EM) 32 3.2.5 The scale of tangibles (TAN) 33 3.2.6 The scale of price policy (PRI) 34 3.2.7 The scale of customer satisfaction (CS) 34 3.3 Methods of data collection 35 3.3.1 Sample size 35 3.3.2 Questionnaire design 36 3.3.3 Survey 36 3.4 Data analysis methods 37 3.4.1 Descriptive statistics 37 3.4.2 Cronbach’s Alpha scale testing 38 3.4.3 Exploratory Factor Analysis (EFA) 39 3.4.4 Regression analysis 40 3.4.5 Analysis of Variance (ANOVA test) 41 3.5 Summary 42 CHAPTER 4: RESEARCH RESULTS AND FINDINGS 43 4.1 Descriptive statistical analysis 43 4.1.1 Descriptive statistics for nominal variables 43 4.1.2 Descriptive statistics for groups of Likert quantitative variables 46 4.2 Cronbach’s Alpha analysis 51 4.2.1 Evaluate the reliability of the reliability scale 51 4.2.2 Evaluate the reliability of the responsiveness scale 52 4.2.3 Evaluate the reliability of the assurance scale 52 4.2.4 Evaluate the reliability of the empathy scale 53 iii 4.2.5 Evaluate the reliability of the tangibles scale 54 4.2.6 Evaluate the reliability of the price policy scale 55 4.2.7 Evaluate the reliability of the customer satisfaction scale 56 4.3 Exploratory Factor Analysis (EFA) 57 4.3.1 Factors analysis for independent variables 57 4.3.2 Factors analysis for the dependent variable 61 4.3.3 Conclusion about EFA 63 4.4 ANOVA and regression analysis 68 4.4.1 Correlation analysis 68 4.4.2 Regression analysis 69 4.4.3 Testing the hypothesis of the research model 72 4.4.4 One way ANOVA analysis 73 4.5 Discussion 75 4.6 Summary 76 CHAPTER 5: CONCLUSIONS AND IMPLICATIONS 78 5.1 Conclusions 78 5.2 Managerial implications 79 5.2.1 Serving Competence (SC) 79 5.2.2 Tangibles (TAN) 80 5.2.3 Price policy (PRI) 82 5.3 Contribution of the research 83 5.4 Limitations and future research 83 5.5 Summary 84 REFERENCES 85 APPENDIX 88 APPENDIX 1: QUESTIONNAIRE 88 APPENDIX 2: DATA ANALYSIS RESULTS 95 iv LIST OF ABBREVIATIONS Serial Abbreviation Complete Words WTO SPSS HCMC Ho Chi Minh City EFA Exploratory Factor Analysis KMO Kaiser-Meyer-Olkin ANOVA Analysis of Variance Sig Significance level VIF Variance Inflation Factor REL Reliability 10 RES Responsiveness 11 AS Assurance 12 EM Empathy 13 TAN Tangibles 14 PRI Price 15 CS Customer Satisfaction 16 SC Serving Competence World Trade Organization Statistical Package for the Social Sciences v LIST OF FIGURES Figure 2.1 SERVQUAL Model 13 Figure 2.2 Logo of Highlands Coffee 19 Figure 2.3 Phin Sua Da with Banh Mi - Vietnamese Bread and Iced Milk Coffee 20 Figure 2.4 Conceptual model 26 Figure 3.1 Research process 28 Figure 4.1 Research model after EFA 68 vi LIST OF TABLES Table 2.1 Previous studies summary 16 Table 2.2 Hypothesis Table 24 Table 3.1 The scale of reliability 30 Table 3.2 The scale of responsiveness 31 Table 3.3 The scale of assurance 31 Table 3.4 The scale of empathy 32 Table 3.5 The scale of tangibles 33 Table 3.6 The scale of price policy 34 Table 3.7 The scale of customer satisfaction 34 Table 4.1 Descriptive statistics for nominal variables 43 Table 4.2 Descriptive Statistics of Reliability 46 Table 4.3 Descriptive Statistics of Responsiveness 47 Table 4.4 Descriptive Statistics of Assurance 48 Table 4.5 Descriptive Statistics of Empathy 48 Table 4.6 Descriptive Statistics of Tangibles 49 Table 4.7 Descriptive Statistics of Price policy 50 Table 4.8 Cronbach’s Alpha of the reliability scale 51 Table 4.9 Cronbach’s Alpha of the responsiveness scale 52 Table 4.10 Cronbach’s Alpha of the assurance scale 52 Table 4.11 Cronbach’s Alpha of the empathy scale 53 Table 4.12 Cronbach’s Alpha of the tangibles scale 54 Table 4.13 Cronbach’s Alpha of the price policy scale 55 Table 4.14 Cronbach’s Alpha of the customer satisfaction scale 56 Table 4.15 Synthesize Cronbach’s Alpha of each scale 57 Table 4.16 KMO and Bartlett’s Test for independent variables 58 vii ... factors of service quality influencing customer satisfaction of Highlands Coffee in Ho Chi Minh City? ­ How service quality factors affect customer satisfaction at Highlands Coffee in Ho Chi Minh City? ... affect customer satisfaction of Highlands Coffee? ??s customers in Ho Chi Minh City 1.2.2 Specific objectives ­ To find factors of service quality impacting customer satisfaction of Highlands Coffee in. .. Coffee in Ho Chi Minh City ­ To analyze service quality factors affecting customer satisfaction of Highlands Coffee in Ho Chi Minh City ­ To propose implications to enhance service quality to