INTRODUCTION
BACKGROUND OF THE RESEARCH
Dong Nai province, covering an area of 5,097.1 km², is divided into 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 comprises 33.23% urban and 66.73% rural residents The Dong Nai People's Committee operates a network of 35 organizations that offer a variety of free and "at-cost" services to the community.
The government, as a large organization, serves various customers, including citizens, businesses, and both public and private employees Through its agencies, departments, and ministries, it delivers essential information and services tailored to each group Consequently, the effectiveness of these services can only be accurately assessed by the customers themselves.
Service quality is a crucial aspect of performance in public sector organizations, where the primary output is services rather than profit These organizations fulfill various roles, including facilitator, pace setter, and socio-economic developer, highlighting their commitment to serving the community effectively.
The customer ultimately determines the quality of products, services, and 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 when their services are inefficient.
Administrative procedures at governmental agencies in Vietnam, particularly in Dong Nai, are cumbersome and intricate, impacting the management effectiveness of the Dong Nai People’s Committee across various levels, from district to local agencies.
The Vietnamese public organizations, particularly the Dong Nai Department of Internal Affairs, are facing numerous complaints from citizens due to delays in service delivery (Dong Nai Department of Internal Affairs, 2006) Major newspapers have reported on public dissatisfaction with the quality of services provided, indicating that customer expectations are not being met This issue is significant for taxpayers, who rightfully 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 overseeing and inspecting these processes.
Consequently, there are still negative activities such as bureaucracy, corrupt, arrogant behavior of officials and services… that have made people annoy, reduce their belief on the transparency of government
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, focusing on administrative and transport services to better meet customer needs and satisfaction The findings will enable leaders to clearly understand the components of service quality that impact customer satisfaction Additionally, the comparison between public administrative and transport services aims to identify specific determinants tailored to each context, offering valuable practical implications.
RESEARCH PROBLEM
Local authorities in Dong Nai are already engaged in a variety of innovative approaches to capture the “voice of the customer” - local area forums, citizens’ juries, etc
Many authorities are increasingly conducting market research surveys to gather valuable data on customer satisfaction levels with their services These surveys serve as a crucial initial step for organizations aiming to enhance their understanding of client needs and improve service quality.
Since gaining independence in 1975, Vietnam's public sector has experienced significant transformations, shifting from a focus on productivity and efficiency to becoming a facilitator and regulator of private sector economic functions Despite these changes, there has been limited emphasis on the implementation of service quality within public services.
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 has predominantly focused on the dimensional approach to service quality, with key contributions from Parasuraman et al (1985, 1988) who introduced the SERVQUAL measurement scale, defining quality as the difference between perception and expectation In contrast, Cronin and Taylor (1992, 1994) developed the SERPERF model, which measures service performance based solely on perception While SERVQUAL has faced criticism, it remains one of the most widely used scales across various industries.
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 crucial consideration for authorities Despite the challenges in assessing customer satisfaction in public services (Corneliu et al., 2010) and the absence of a standardized measurement scale, recent studies highlight service quality as a key precursor to customer satisfaction (Garcia, 2009) In Vietnam, the relationship between service quality and customer satisfaction has garnered attention from researchers; however, few studies have adapted the SERVPERF model to identify and measure the specific dimensions of service quality that influence customer satisfaction, limiting the ability to generalize findings.
This study investigates the relationship between the nine dimensions of service quality, as identified by Parasuraman et al (1985), and customer satisfaction in the context of public services, specifically focusing on public administrative services and public transport services By analyzing these dimensions, the research aims to elucidate their impact on customer satisfaction and to compare the dynamics between the two sectors A comprehensive literature review will further elaborate on these concepts and their implications.
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 distinct stages: an initial pilot study utilizing qualitative research methods, followed by a main survey that employs quantitative research techniques.
In qualitative research, the purpose is to clarify the concepts and interpret the items in measurement scales into the public service context based on the standpoint of customers
Furthermore, the necessary adjustments are conducted to enhance the power of the scales
The research utilized focus-group interviews, a widely recognized technique that offers historical insights and enhances information through participant interaction (Donald & Pamela, 2006) This method proved beneficial for gathering essential background on the topic, interpreting existing research findings, and generating new ideas for potential modifications and additions Participants included individuals who had utilized public services in Dong Nai province within the past three years.
Based on the qualitative research findings, measurement scales are modified before being employed for main survey in quantitative research
In a quantitative research study conducted in Vietnamese, a survey was designed to assess the impact of nine SERVQUAL dimensions (Parasuraman et al., 1985) on customer satisfaction regarding service quality practices This research specifically compares public administrative services 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 within the past three years Customers were randomly selected to complete the survey, which was collected either in person, via mail, or through online methods Responses were measured using a five-point Likert-type scale.
“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 Following this, 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 key chapters: the introduction outlines the study's purpose, the literature review presents relevant theories and hypotheses, the research methodology details the approach and data analysis, the results section showcases the findings, and the final chapter encompasses the discussion, implications, and conclusion of the research.
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 presents about the method and research design used in the current study to
This study investigates the interplay between nine dimensions of service quality and customer satisfaction in public services within Dong Nai province, comparing the relationships between public administrative services and public transportation services The research employs a mixed-methods approach, integrating both qualitative and quantitative research methodologies.
This chapter outlines the analysis of the collected data, focusing on the reliability and validity, which will be evaluated using Cronbach’s alpha and Exploratory Factor Analysis (EFA) It will also examine the hypotheses and the influence of demographic variables on customer satisfaction based on the collected data The chapter is structured into four key sections: descriptive analysis, measurement assessment, hypothesis testing, and the impact of demographic variables.
This chapter reiterates the thesis goal outlined in the introduction, highlighting the relationship between the thesis findings and their practical applications It proposes several strategies for managerial implications while also addressing key limitations that should be acknowledged Additionally, the chapter recommends avenues for further research to enhance understanding and application.
Therefore, this chapter consists of three parts: conclusion, managerial implications, and limitation of study and future research.
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 intrinsically linked to the state’s provision of these services, as highlighted by the Central Institute for Economic Management (CIEM, 2006) The term "public services" derives from the concept of public commodities, which possess unique natural characteristics: they are non-excludable, meaning once created, no one can be prevented from using them; one person's consumption does not diminish another's ability to consume; and they cannot be discarded, remaining available even if not actively consumed Consequently, public commodities are classified into pure public commodities, which meet all three criteria, and impure public commodities, which do not.
1998) At first, the definition of “public services” is to present the activities of impure public commodity supply, firstly used in the Europe after World War II Nowadays, the
18 | P a g e conception of “public service” has been remarkably extended, depending on various approaches
Public service is defined by researchers in the field of administration as the activities undertaken by state agencies to fulfill their role in state management and ensure the provision of essential services to meet the common needs of society This perspective emphasizes the responsibilities of the state in delivering public services, viewing them as vital supply activities conducted by either the state or private sector to address the fundamental interests of communities and society at large (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 nationwide, highlighting the state's active role in providing these services to the community However, this does not imply that the state holds a monopoly on service provision; rather, it can collaborate with the private sector to share the responsibility for essential services such as healthcare, education, and water supply.
Certain essential services, such as vaccination, firefighting, and water drainage, are often neglected by the private sector due to their lack of profitability or insufficient capital and power to provide them These services are crucial for community well-being and are best managed by the state, which has the capacity and responsibility to ensure their availability Additionally, while services like education, healthcare, electricity, and clean water can be offered by markets, they frequently result in inefficiencies, social inequality, monopolies, and overpricing, negatively impacting consumers and society as a whole Therefore, it is imperative for the state to either directly provide these services or regulate private markets to uphold the basic rights of the people (Kearsey et al, 1998).
Public services, despite their diversity, are united by their purpose of addressing the common needs and interests of society, with the state responsible for ensuring their provision Even when the state delegates certain services to the private sector, it maintains a regulatory role to guarantee fair distribution and to address market deficiencies.
Public services are essential activities that fulfill the fundamental needs of society, executed 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
Public services vary significantly across countries, influenced by their economic development levels, making it impractical to apply a uniform standard globally For instance, Canada recognizes 34 types of public services, encompassing national defense, security, socio-economic policies, and more In Sweden, public services are decentralized, with a focus on providing free welfare services like unemployment benefits and social allowances Overall, health care and education are universally valued across nations, reflecting their importance in public service frameworks.
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
For developing countries like Vietnam, it is essential to prioritize the state's role in serving society by narrowing the focus of public services to address the most urgent common interests of the people, ensuring their stable and safe lives A critical step is to clearly separate public service activities from administrative civil authority functions, as outlined in government policies This approach aims to eliminate subsidization, streamline the state apparatus, mobilize societal resources, and enhance the quality of public services for the benefit of the people.
Public services can be classified based on various criteria, including the nature and form of the services provided According to the CIEM report (2006), public services fall into three main categories based on their supply: those directly provided by the state, those supplied by state-owned enterprises, and those offered by non-governmental organizations and the private sector Additionally, the report further explores the types of public services by examining their nature and the effects they produce.
Public administrative services are essential functions of state management designed to meet the needs of citizens These services include direct activities 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 be categorized differently and may not fall under the broader definition of public services.
In Vietnam, some researchers also share this viewpoint.)
Public non-productive services encompass essential social welfare activities that benefit the community, including healthcare, education, cultural initiatives, scientific research, physical training, sports, insurance, and social security These services are primarily managed by government entities and organizations, with some aspects being partially socialized to enhance accessibility and support for the population.
Public interest services are essential economic activities conducted by enterprises to meet state requirements and benefit the public These services include water and electricity supply, environmental sanitation, and social infrastructure, primarily managed by state-owned enterprises However, some private sector activities also contribute, particularly in local areas, such as waste collection in small cities and pure water supply in rural regions.
2.2.1.3 MAJOR CHARACTERISTICS OF PUBLIC SERVICES
According to a paper of CIEM (2006) there are some major characteristics of public service:
Public services are fundamentally focused on serving the community's interests, promoting social equality, and ensuring stability Unlike private enterprises, the primary motivations behind public services are not economics or profit, but rather the well-being of society as a whole.
Public services are designed to meet the needs of all citizens, ensuring equal access regardless of social class or status This principle of inclusivity reflects the essence of wise publicism, where every individual is recognized as deserving of state support and services.
Public services are unique offerings provided by the state or designated organizations and individuals, designed to meet the diverse needs of society These services encompass both tangible and intangible products, ensuring that they address the collective demands of the community rather than functioning as typical commodities.
RESEARCH METHODOLOGY AND DATA ANALYSIS
INTRODUCTION
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 within Dong Nai province Additionally, it 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: an initial 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 purpose is to clarify the concepts and interpret the items in measurement scales into the public service context based on the standpoint of customers
Furthermore, the necessary adjustments are conducted to enhance the power of the scales
The focus-group interview, recognized as the most prominent group interview method, was utilized due to its ability to yield historical insights and enhance data through participant interaction (Donald & Pamela, 2006) This technique proved to be invaluable for the research.
This research aims to provide a comprehensive background on the topic, interpret existing findings, and introduce innovative ideas for enhancing and adding new components The interview participants were individuals who have utilized public services in Dong Nai province within the past three years.
Based on the qualitative research findings, measurement scales are modified before being employed for main survey in quantitative research
In a quantitative research study conducted in Vietnamese, a survey was designed to assess the impact of the nine SERVQUAL dimensions (Parasuraman et al., 1985) on customer satisfaction regarding service quality in 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 Customers were randomly selected to complete the survey, which was collected either in person or returned by mail to the researchers.
Customers rated these statements on a five-point Likert-type scale from “strongly agree”
(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 Parasuraman et al (1985) and refined through qualitative research, resulting in 38 items Additionally, the customer satisfaction scale was derived from Taylor and Baker (1994) with three items, tailored specifically for the public service context Both scales utilized 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
When the staff in bureaus promise to do something by a certain time, they do so
When customers have problems, they are sympathetic and reassuring
They provide their services at the time they promise to do so
They keep their records accurately
The staff in bureaus tell customers exactly when services will be performed
You always receive prompt service from the staff in bureaus
They are always willing to help customers
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
Customers can trust the staffs in bureaus Customers feel safe when working with the bureaus
Personality of the staff in bureaus make customers feel trustful
Prestige of the bureaus make customers feel trustful
Customers can easily ask for instruction to use service through telephone
It does not take long waiting time for customers to be served
The bureaus are in good location and easy to get there
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
Unde1 Unde2 Unde3 Unde4 Unde5
The bureaus always pay attention to each customer
The staff in bureaus always care for each customers
They understand clearly customers’ requirements
They realize their frequent customers
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 scale effectiveness This step also fosters opportunities for new ideas and items, contributing to the improvement of the research model and measurement scale For reference, the measurement scale utilized in this qualitative research can be found 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 perspective of citizens, identified as the "primary customers" of public services Participants were selected from a list of individuals recorded by state agencies in Dong Nai, ensuring they had relevant experiences with the delivery of public services.
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 service quality factors outlined in this research's measurement scale, which are essential for enhancing customer satisfaction However, certain items within the scale are not well-suited to the unique context of Vietnam's public transport services and require modifications for better relevance Additionally, the questionnaire's wording needs to be tailored to align with the specific types of public services provided.
Detail qualitative research result is in Appendix 3.2
RESEARCH RESULTS
INTRODUCTION
This chapter outlines the descriptive analysis of the collected data, assessing its reliability and validity through Cronbach’s alpha and Exploratory Factor Analysis (EFA) It will also test the hypotheses and examine the impact of demographic variables on customer satisfaction The chapter is structured into four key sections: descriptive analysis, measurement assessment, hypothesis testing, and the evaluation of demographic influences.
DESCRIPTIVE ANALYSIS
Out of 230 questionnaires distributed to citizens who have utilized public services in Dong Nai province, Vietnam, 225 were returned, resulting in a response rate of 90.22% Of these, 203 questionnaires were deemed usable, meeting the criteria of having no more than one missing value and not selecting all “1” or all “5” for more than two factors The sample included responses from various state agencies, including the Dong Nai People’s Committee, Department of Planning and Investment, Department of Transportation, and Department of Education and Training However, 27 questionnaires were excluded due to incompleteness or poor quality A descriptive analysis of the sample reveals a diverse demographic in terms of agency representation, gender, age, frequency of service use per month, and educational background.
Table 4.1 - Descriptive statistics of the data
High School College Bachelor Master
Using service frequency per month
Once Twice Three times Four times More than four times
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
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
Reli1 Reli2 Reli3 Reli4 Reli5
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
Unde1 Unde2 Unde3 Unde4 Unde5
Customer Satisfaction (Sati1 -> Sati3) Cronbach’s Alpha = 844
The study's findings demonstrated that all scales met the reliability criteria, with Cronbach’s Alpha values exceeding 60 The Competence measure recorded the lowest Cronbach’s Alpha at 767, followed closely by the Communication scale at 779, while the remaining scales achieved excellent coefficients above 80 Furthermore, the corrected item-total correlations for all scales also met the necessary threshold of greater than 30.
4.3.2 EXPLORATORY FACTOR ANALYSIS (EFA) RESULT 4.3.2.1 EFA FOR INDEPENDENT VARIABLES
In this phase of data analysis, we investigated the dimensions of service quality within the public sector The Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy was employed to assess the smallness of partial correlations among variables, with a KMO value ranging from 5 to 1 indicating the applicability of Exploratory Factor Analysis (EFA) (Tho N.D., 2011) Additionally, Bartlett’s test of Sphericity was utilized to determine if the correlation matrix is an identity matrix; a p-value of less than 05 in this test suggests significant correlations among the variables, confirming the suitability of 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
Unde1 Unde2 Unde3 Unde5 Cour1 Cour2 Cour3
Access (Acce1 -> Acce4) Cronbach’s Alpha = 774
The revised model and hypothesis
The EFA results indicated a revised model comprising one dependent variable and five independent variables, following the exclusion of unsatisfactory items based on Cronbach’s Alpha analysis.
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 test the correlation between these variables, as indicated in Table 4.8 The findings reveal 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 Notably, four key factors—reliability, competence, tangibility, and access—have a substantial impact on enhancing customer satisfaction.
The four factors identified account for 59.3% of the variance in customer satisfaction Among these, Tangibles have the highest beta coefficient at 0.264, indicating its significant impact on customer satisfaction Competence follows with a beta coefficient of 0.189, also demonstrating a notable contribution Reliability contributes with a value of 0.178, while Access adds 0.145 to customer satisfaction Lastly, Empathy shows the least impact 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
Access 145 062 148 2.335 021 498 2.007 a Dependent Variable: Customer Satisfaction
The results of hypotheses testing are presented in Table 4.11
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
Empathy has a positive effect on customer satisfaction
H1: Tangible has a positive effect on customer satisfaction
Table 4.11 indicates a strong relationship between tangibility and customer satisfaction, with an unstandardized coefficient of β = 264 This significant relationship, evidenced by a p-value of 000 (p < 0.05), supports the hypothesis that tangibility positively affects 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 indicate a positive correlation between competence and customer satisfaction, with a multiple correlation coefficient (β) of 189 The significance level was confirmed with a p-value of 016, which is less than the threshold of 0.05, thereby supporting hypothesis H3 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
4.4.2 TESTING 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 the influence of five dimensions on customer satisfaction in public administrative services, a multiple regression analysis was conducted The unstandardized beta coefficients reveal the effects of the independent variables—Tangibility, Reliability, Competence, Accessibility, and Empathy—on the dependent variable, Satisfaction.
Table 4.12 Coefficients of the construct for public administrative service
Access 157 087 161 1.791 006 a Dependent Variable: Customer Satisfaction
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 4.4.3 TESTING 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 evaluate how five dimensions influence customer satisfaction with public transport services, multiple regression analysis will be utilized to examine the correlation coefficients The unstandardized beta coefficients will demonstrate the effect of independent variables—Tangibility, Reliability, Competence, Accessibility, and Empathy—on the dependent variable, Satisfaction.
Table 4.13 Coefficients of the construct for public transport service
Access 154 093 151 1.649 003 a Dependent Variable: Customer Satisfaction
The analysis in Table 4.13 reveals that Tangible factors significantly enhance Customer Satisfaction with a β value of 311 Additionally, Reliability and Access also contribute positively, with β values of 213 and 154, respectively In contrast, Empathy and Competence appear to have no significant impact on Customer Satisfaction, reflected by a β value of -.033.
= 549 > 0.05, Competence (β = 158, p-value = 231 > 0.05) The regression equation could be re-written as follows:
Sati T = 608 + 311Tang + 213Reli + 158Comp + 154Acce - 033Empa + ε Table 4.14 Comparison Customer’s Viewpoints
CONCLUSION
This chapter summarizes the hypothesis analysis conducted in this study, utilizing SPSS software for data evaluation Descriptive analysis revealed frequencies and percentages, while Cronbach Alpha coefficients confirmed the reliability of the measurement scales Additionally, inferential statistics were employed for correlation and regression analyses to examine the relationships between independent and dependent variables.
The study identified four key variables—tangible aspects, reliability, competence, and access—that significantly influence customer satisfaction These findings align with the theoretical framework proposed by Parasuraman et al in Chapter 2, highlighting customer perspectives on two types of services Additionally, the results indicate that the impact of these five dimensions on customer satisfaction varies depending on the type of public service, specifically between public administrative services and public transport services.
CONCLUSION AND IMPLICATION
INTRODUCTION
This chapter reinforces the thesis objectives outlined in the introduction, illustrating the link between the research findings and their practical applications It proposes strategies for managerial implications while also addressing significant limitations that should be acknowledged Additionally, it offers recommendations for future research to build upon the current study.
Therefore, this chapter consists of three parts: conclusion, managerial implications, and limitation of study and 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 attributes of a service, including decor, ambience, technology, and equipment, which enhance a public servant's capability to deliver desired services This study highlights that tangible elements include modern equipment in the bureaus, visually appealing physical facilities, and a consistent appearance that aligns with the nature of the services offered.
Citizens expect quality physical facilities when utilizing services at state agencies, as many have experienced inadequate conditions in the past.
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 capability 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 seek trustworthy public services to enhance their satisfaction and willingness to engage with these services.
H3: Competence has a positive effect on customer satisfaction
Competence in the public sector refers to the essential skills and knowledge required to deliver effective services This includes the expertise of both contact personnel and operational support staff, as well as the organization's research capabilities Citizens often perceive that the knowledge of public servants plays a crucial role in enhancing service quality, making competence a significant factor influencing customer satisfaction.
H4: Access has a positive effect on customer satisfaction
Access refers to a public servant's approachability and ease of contact, encompassing factors such as availability by telephone, minimal waiting times, convenient hours of operation, and a strategically located service facility Clearly, individuals prefer to engage with public services in the most convenient manner possible, making access a critical element that significantly impacts customer satisfaction.
H5: Empathy has a positive effect on customer satisfaction
A study measuring empathy through efforts to understand customer needs revealed no significant relationship between empathy and customer satisfaction Key elements of empathy assessed included understanding specific customer requirements, offering personalized attention, and acknowledging regular customers The lack of impact on customer satisfaction may stem from the perception that such empathetic service is a standard expectation in public services, particularly in administrative and transportation sectors, where understanding customer needs is considered 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 factor shows no significant relationship with customer satisfaction (p A = 225 > 0.05), while in public transport services, it has a strong positive effect (β T = 311, p T = 001 < 0.05) Tangibles, which include physical environments, modern equipment, and personal appearances, are particularly important in public transport, as customers tend to focus on these aspects For instance, daily bus travelers may perceive the quality of bus facilities as crucial for their safety, highlighting the need for consistent bus maintenance and frequency.
In a study examining customer satisfaction, reliability emerged as a significant factor, with p-values of p A < 0.05 and p T < 0.05, indicating a positive relationship between reliability and customer satisfaction Notably, users of public transport services rated reliability higher than those utilizing public administrative services Key elements of reliability included timely service delivery, accurate and prompt billing, and dependable staff in addressing service issues.
- Competence: β A = 216, p A = 027 < 0.05 and β T = 158, p T = 231 > 0.05 => Thus, competence aspect had no relationship with customer satisfaction in public transport service while people using administrative service pay high attention in to this aspect
Competence in the public sector refers to the essential skills and knowledge necessary for delivering effective services Citizens recognize the importance of these competencies, as they directly influence the quality of services received, leading to improved outcomes in public administration.
Both administrative service customers and transport service customers value the access factor, evidenced by significant p-values (p A < 0.05, p T < 0.05) and β A = 157, which is greater than β T = 154 This access factor includes easy telephone accessibility, minimal waiting times, convenient operating hours, and strategic 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 influence customer satisfaction in public transport services, as indicated by p T = 549 (greater than 0.05) and β A = 090 However, it was noted that users of administrative services placed importance on the empathy aspect, with a significant p A = 035 (less than 0.05).
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; specifically, the factor of "Empathy" does not impact customer satisfaction in public services.
Tangible elements significantly impact customer satisfaction, prompting managers to prioritize their enhancement in operations This includes maintaining decor, ambiance, technology, and equipment, all of which are essential for public servants to deliver the desired level of service effectively.
Beside, “Competence” is also one of the important role in customer satisfaction
Managers should engage more with their staff to foster encouragement and consider implementing training courses that enhance the necessary skills and knowledge for effective service delivery in the public sector.
Reliability is a crucial factor influencing customer satisfaction, prompting managers to prioritize it in service quality delivery Ensuring services are completed on time, issuing accurate and prompt bills, and demonstrating honesty in resolving service issues are essential practices for enhancing customer trust and satisfaction.
"Access" significantly enhances customer satisfaction, making it essential for managers to prioritize this aspect Ensuring that services are easily reachable by phone and minimizing waiting times for service are crucial steps in achieving this goal.
74 | P a g e convenient hours of operation; convenient location of service facility
Research shows that customer satisfaction in public services is influenced by five key dimensions, which vary depending on the type of service—public administrative or public transport Notably, customers of public transport services prioritize tangible elements more than those using public administrative services.
Public transport managers must prioritize the maintenance of facilities, ensuring comfortable seating, smooth bus rides, and minimized travel times to enhance service quality While empathy significantly influences customer satisfaction in public administrative services, it does not have the same effect in public transport Therefore, managers in public transport should focus on delivering consistent service that meets customer expectations, fostering a friendly atmosphere, and being attentive to the specific needs of passengers.
The objectives of the private sector, such as cost reduction and enhancing service quality, are increasingly aligning with those of the public sector Public sector management can benefit from the private sector's experiences, particularly in customer orientation and the critical role of service providers in maintaining quality standards Adopting a customer-oriented approach in public service management is vital, as the public often compares the performance of public services to that of private enterprises, highlighting the need for improved service delivery.
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 limit the generalizability of the findings to the broader Vietnamese public service Future research should address these limitations to enhance the validity of the conclusions drawn.
This research is limited by its sample size, consisting of 203 citizens who interacted with public administrative and transport services in Dong Nai over the past three years This convenient sample does not adequately represent the diverse range of customers Future studies should consider larger sample sizes to enhance the reliability of results and enable more accurate generalizations.
During the EFA analysis, several variables were excluded due to low factor loadings (below 0.5), leading to a significant reduction in the number of variables for each factor, with some factors being entirely removed 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 to the public and operational requirements These differences can significantly impact the overall effectiveness and accessibility of the services provided.
76 | P a g e quality of service between those services that are paid for and those that are free of charge This is an issue that warrants further investigation.
CONCLUSION
Globally, the public sector is recognizing the advantages of implementing service-quality programs This study validates the correlation 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 emphasize the crucial role of employees in enhancing customer satisfaction through their reliability and competence This aligns with previous research indicating that an employee's attitude towards customers significantly impacts both short-term and long-term organizational outcomes Additionally, tangible elements, such as decor, ambience, technology, and equipment, play a vital role in shaping customer perceptions of service quality and satisfaction, as noted by Guiry (1992), Johnston (1995), and Dabholkar et al (2000).
As customers become more discerning and capable of choosing between private and public services, service quality must be a fundamental aspect of the management strategy for public services in Vietnam.
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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
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 personnel
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;
1 In general, I am pleased with quality of public service
2 Quality of public service has been improved significantly in recent times
3 Public service outcome meet my demand
Modified from the scale of Taylor & Baker (1994);
THE QUALITATIVE RESEARCH FINDINGS
The findings of focus pilot interview got agreements of interviewers on the below contents:
The research confirms that the factors influencing service quality in public services are essential for achieving customer satisfaction However, certain items in the measurement scale are not suitable for the Vietnamese context, particularly regarding public transport services in Vietnam Therefore, modifications and enhancements are necessary to ensure the scale is more appropriate for local conditions.
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 the customer back quickly
Modified because it is not realistic in
In the Vietnamese public service sector, timely responses to customer inquiries are crucial It is essential for service representatives to prioritize customer requests, ensuring they are never too busy to provide prompt assistance.
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 content was unclear and challenging for customers to assess in the context 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 I kindly request your participation in answering the following questions Please note that there are no right or wrong answers; your insights are invaluable to my study Thank you for your sincere 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?
Once [ ] Twice [ ] Three times [ ] Four times [ ] More than four times [ ]
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
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
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:
High school [ ] College [ ] Bachelor [ ] Master [ ] Doctoral [ ]
Thank you very much for your cooperation!
Department of Taxation Department of Statistics The Provincial Treasury State Owned Bank
Department of Justice Department of Trade
Department of Banking Department of Industry
Department of Transportation Department of Customs
Department of Construction Department of Agriculture & Rural
Department of Planning and Investing Department of Education & Training Department of Public Post & Telecom Department of Science & Technology
Environment Department of Labor, Invalids & Social Affairs
ORGANIZATIONAL CHART OF DONG NAI PEOPLE’S
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
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 .724
Component Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative %
Extraction Method: Principal Component Analysis
1 Customer Satisfaction 2 891 Customer Satisfaction 3 872 Customer Satisfaction 1 857 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