TITLE: RESEARCH ON FACTORS INFLUENCING CUSTOMER SATISFACTION – A CASE STUDY OF DANAPHA PHARMACEUTICAL COMPANY, VIETNAM
Thesis proposal TITLE: RESEARCH ON FACTORS INFLUENCING CUSTOMER SATISFACTION – A CASE STUDY OF DANAPHA PHARMACEUTICAL COMPANY, VIETNAM Student name: Duong Chi Toan Advisor: Shyh-Hwang Lee Class: SD-MBA Co-advisor: Nguyen Xuan Lan ID: 11752321 Content Introduction Research background Research motive Research purpose Research procedure Literature review Research methodology Research model Research hypothesis Measurement of variable Data collection Expected result and implication of result Keywords Customer satisfaction Corporate image Perceived value Customer expectation Pharmaceutical services Introduction Background Vietnam is a country located in the South East Asia Vietnam has population of 87 millions in 2010 with under 75% of population are under 40 year old (General department of statistic, 2010) The total value of drugs used over US$ 1.9 billions in 2010 On average, one person spent about US$ 21.8 per year for drug in 2010 (Vietnamese Drug administration, 2010) BMI forecasts in the next years, pharmaceutical market in Vietnam will be a potential market for foreign companies (Business Monitor International Ltd, 2010) Background (con’t) Currently, the capacity of the domestic pharmaceutical industry can only meet nearly 50% of value, the other mainly come from import Under WTO commitments, the foreign pharmaceutical companies have the right to open branches in Vietnam and was directly involved in import of pharmaceuticals, even though no distribution rights Vietnam’s pharmaceutical market has strong competition Nearly 200 domestic enterprises and 500 foreign enterprises Background (con’t) Danapha was founded in 1965 by the government, Since January 1st 2007, company have changed into joint stock company It is located in Danang city, central of Vietnam The company has 370 employees with total of capital is US$ 4.7 million ( Danapha annual report, 2011) It is one of the biggest pharmaceutical enterprise in the central of Vietnam The company is special in manufacturing and distributing pharmaceutical products in Vietnam market Background (con’t) The company has five branches for distributing company’s product nationwide, each branch take care a lot of agencies and pharmacies in many provinces around it Beside Vietnam market, Danapha also developed abroad market such as Russia, Ukraine, Cambodia, Laos… Research motive Understanding what factors influencing customer satisfaction may be a good advantage for company development in the competitive market Not many researches on customer satisfaction have been carried and published in Vietnam There is a real incentive for me to help my company having a better standing in the central of Vietnam Research purpose To identify the key factors which influence customer satisfaction in pharmaceutical service-a case study at Danapha pharmaceutical company This study also provide to company some suggestions to meet customers’ needs, thereby enhancing customer satisfaction Providing managerial implications for marketing practice Literature review (con’t) Perceived value Bolton and Drew (1991) defined the service value as “consumer’s overall evaluation of service utility with respect to what they get for what they give” Perceived value is considered as one source of competitive advantage (Woodruff, 1997) Five dimensions of value: (1) functional value, (2) emotional value, (3) social value, (4) conditional value, and (5) epistemic value Different dimensions have different importance in the decision of customers Literature review (con’t) Corporate image Corporate image is as the overall impression made on the minds of the public about a firm (Barich and Kotler,1991) Corporate image is the result of a process, this process increase from ideas, feelings, and previous experiences with a firm that are created from memory and transformed into mental images (Yuille and Catchpole, 1977) The image concept evaluates the underlying image of the company, it refers to the brand name and the kind of associations customers obtain from the company (Andreassen & Lindestad, 1998) Literature review (con’t) Perceived quality According to Bayraktar et al (2012), “Perceived quality is evaluation of consumption experience by the market served This concept evaluates customization and reliability of a product or service Customization is the degree to which a product or service meets requirements of customers, and reliability is the degree to which company’s offering is reliable, standardized, and free from deficiencies” Anderson & Sullivan (1993) verified that perceived quality has been considered one of the important variables effecting on customer satisfaction Research methodology Research model Corporate image Customer expectation Customer satisfaction Perceived quality Perceived value Fig Research model This study accepts the The Taiwan Customer Satisfaction Indexautomobile industry model (Chiu et al, 2011) for investigating customer satisfaction as the backbone of research model Research hypothesis We have four following hypotheses: H1 Corporate image has a positive effect on customer satisfaction H2 Customer expectation has a positive effect on customer satisfaction H3.Perceived quality has a positive effect on customer satisfaction H4 Perceived value has a positive effect on customer satisfaction Measurement of variable We have total of 18 items as following: Corporate image (3 items): good impression; good image in the minds of consumers; has a better image than their competitors (Nguyen & Leblanc, 2001) Customer expectation (5 items): Overall expectation; attitude and appearance of employees; employees ability, knowledge, and service; reliability of the products; products to meet my needs (Chiu et al, 2011) Measurement of variable (con’t) Perceived quality (5 items): attitude, appearance and kindness of the provider’s staffs, ability, knowledge of Danapha’s staffs, Reliability of products, ability of products to meet my personal needs, Overall evaluation (Chiu et al, 2011) Perceived value (2 items): product value to the cost, comparing to other company products Satisfaction ( items): provider is a wise one; I did the right thing; satisfied with the selection (Deng et al,2010) Data collection Data collection methods: Questionnaire survey with structured questions, sent by mail or handout All variables were measured by seven- point Likert scale Population of this study includes about 150 respondents (pharmacy owners – drug store) Samples will be chosen by convenient selection ( from Danapha’s customer list) The statistical program packages SPSS 16 will be used to interprete the data Expected result and implication of result I expect that four dimensions (factors) have significant effect on customer satisfaction in pharmaceutical sector The study success will be advantage to propose a simple model to research customer satisfaction in pharmaceutical sector Shows the opportunity for pharmaceutical strategists in Vietnam to 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