National Economics University NEU BUSINESS SCHOOL LUONG THE QUANG Factors influencing customer satisfaction on organic dishwashing liquid product line of Layer Clean Vietnam company MASTER OF BUSINESS[.]
National Economics University NEU BUSINESS SCHOOL LUONG THE QUANG Factors influencing customer satisfaction on organic dishwashing liquid product line of Layer Clean Vietnam company MASTER OF BUSINESS ADMINISTRATION THESIS SUPERVISOR: ASS PROF., DR VU THANH HUNG Ha Noi, 2017 ACKNOWLEDGEMENT TABLE OF CONTENTS ACKNOWLEDGEMENT LIST OF FIGURES LIST OF TABLES EXECUTIVE SUMMARY .8 CHAPTER 1: INTRONDUCTION 10 1.1 Rationale .10 1.2 Research objectives 11 1.3 Research question 12 1.4 Research methodology 12 1.4.1 Research Process .12 1.4.2 Data collection 13 1.4.2.1 Secondary Data 13 1.4.2.2 Primary Data 13 1.4.3 Data analysis 15 1.5 Research scope .17 1.6 Thesis structure 18 CHAPTER 2: THEORETICAL BACKGROUND ON CUSTOMER SATISFACTION 19 2.1 Overview of Customer satisfaction 19 2.2 Consumer Decision Making Process 20 2.2.1 Problem Recognition (I need new trainers) 21 2.2.2 Information search 21 2.2.3 Evaluation of Alternatives 22 2.2.4 Purchase 22 2.2.5 Post Purchase satisfaction or dissatisfaction 23 2.3 Maketing program – The Marketing Mix 23 2.3.1 The Marketing Mix P’s: .23 2.3.2 The extended P’s: 25 2.4 Theoretical framework on customer satisfaction .26 CHAPTER 3: ANALYZING THE INFLUENCE OF FACTORS TO CUSTOMER SATISFACTION OF LAYER CLEAN VIETNAM COMPANY’S ORGANIC DISHWASHING LIQUID PRODUCT LINE .28 3.1 Overview of Layer Clean Vietnam .28 3.1.1 General information of Layer Clean Vietnam 28 3.1.2 Vision, Missions and Core Values 29 3.1.3 Competition 30 3.2 Attribute to analyze customers satisfaction of Layer Clean Vietnam company’s products .32 3.2.1 3.3 Profile of respondents: 32 3.2.1.1 Geographic: .32 3.2.1.2 Demographic 32 Analyzing factors influencing customer satisfaction 33 3.3.1 Demographic Overview 33 3.3.2 Criteria 34 3.3.2.1 Product .35 3.3.2.2 Brand 35 3.3.2.3 Design 36 3.3.2.4 Material 36 3.3.2.5 Place 37 3.3.2.6 Price 37 3.3.2.7 Promotion 38 3.3.2.8 People .38 3.3.2.9 Physical Evidence 39 CHAPTER 4: RECOMMENDATION TO IMPROVE CUSTOMERS SATISFACTION 40 CONCLUSION 42 REFERENCE 43 APPENDIX .45 LIST OF FIGURES Figure 1.1 Research Process (Source: author’s design) 12 Figure 1.2 Consumer decision making process 16 Figure 1.3: The 7ps framework 17 Figure 2.1 The Buyer Decision Making Process 20 Figure 2.2 The Marketing Mix P’s 24 Figure 2.3 The Marketing Mix P’s 26 LIST OF TABLES Table 3.1 Vision, Mission and Core Values of company 29 Table 3.2 Company Shares of Home Care: % Value 2012-2016 32 Table 3.3 Top of mind awareness 33 Table 3.4 Important of each element in 7P’s 34 Table 3.5 Product’s sub-criterion 35 Table 4.1 Recommendation 41 EXECUTIVE SUMMARY Established in 2015, Layer Clean Vietnam company runs its business with the slogan “Organic detergent products – Safety and Friendly” The main target customers of this business are mainly Vietnamese female Furthermore, Layer Clean Vietnam also focus on building business based on priority factors which are Quality, Safety and Efficiency In order to support Layer Clean Vietnam to figure out the list of criteria which can affect to customers thus Layer Clean Vietnam company can improve their business by understanding customers deeply and comprehensively There are main purpose of this report, firstly, it will determine what criteria will be concerned by customers when they decide purchasing organic products Secondly, the importance of each criterion will be evaluated Finally, this report will also figure out what criteria has been performed immensely by Layer Clean Vietnam The process of this research consists of stages First stage will be conducting focus group interview in which, each group will have at 5-10 participants Secondly, in depth interview will be conducted to collect more data In order to analyze data, there are frameworks will be used which are 7Ps framework and Consumer Decision Making framework These frameworks will be combined to filter and evaluate criteria In general, customers satisfy with the quality of products but the design of products had a lot of complains Moreover, the product arrangement is not helpful in terms of displaying and attracting customers However, the result of this research is limited by small sample size which cannot be referred to the whole market The bias of responses might happen and cause inaccurate responses From analyzed data, an overview of how customers respond to Organic home care products has been made in which it not only points out the factor which has the most concern from customers but it also showed the minor attribute which can affect to customers’ experience In case of Layer Clean Vietnam company, Product is the most important factor to customers due to the reason that customers are now concerning more about what product made off which could affect directly to the health of consumers Beside of that, other factors also play important roles to motivate customers to purchase For example, because of poor design, Layer Clean Vietnam company’s products are not attractive compared to other well-known products which have better design and colors Hence, it will affect to customers’ recognition Finally, recommendations were given out for Layer Clean Vietnam company to consider which factors will be focused in for investment which will help company to improve its products or maximize customer satisfaction and experience CHAPTER 1: INTRONDUCTION 1.1 Rationale “Customer Satisfaction”, this phase is used to describe the level of a customer concerning a product or service provided by a company However, this is an abstract concept in which it involves multiple factors such as quality of products, the quality of service or even the attitude of staff Because of that, Customer Satisfaction becomes an intangible factor that can’t be measured comprehensively In general, today’s companies understand that the success of a firm depends heavily on the level of customers satisfaction due to the experience of customers with products or service, it could result in lifelong customers and a lot of benefits to brand image Hence, numerous today companies are placing customer satisfaction as priority in their goal list to invest in and make it as a competitive advantage to increase market share On the other hand, since customer satisfaction is an intangible factor, does increasing it will maximize company’s profit? Customer satisfaction is related to experience of customers and it involves multiple aspects of products and service so investing in customer satisfaction could lead to a mass investment in all aspect Therefore, understanding which factor influencing customer satisfaction is mandatory to make investment become effective and efficient Due to the increase of food scandal cases recently in Vietnam which were mainly caused by chemical ingredients in products, Vietnamese consumers are increasingly looking for alternative ways to protect their health and family members from food poisoning and unwanted side effects One of that ways is replacing usual products with organic ones which are made from natural ingredients Consequently, it created a potential market for all organic products, including home care products such as Dishwashing, Bleach, and Laundry Care Seizing the opportunity, Layer Clean Vietnam company opened their business in 2015 with the aim to provide organic home care products to Vietnamese consumers massively As a new company in a new market, increasing market share and 10 ... framework on customer satisfaction .26 CHAPTER 3: ANALYZING THE INFLUENCE OF FACTORS TO CUSTOMER SATISFACTION OF LAYER CLEAN VIETNAM COMPANY? ??S ORGANIC DISHWASHING LIQUID PRODUCT LINE ... influence of each factors to customer satisfaction of Layer Clean Vietnam company? ??s organic dishwashing liquid product line Chapter 4: Recommendation to improve customer satisfaction 18 CHAPTER... information of customer satisfaction concepts and customer behavior throgh literature review and secondary data 1.4.2 Data collection 1.4.2.1 Secondary Data For background information of Layer Clean Vietnam