Research into customer satisfaction with public services ò thach thanh ddistricts social insurance agency

Thesis for the Degree of Master Research into customer satisfaction with public services of Thach Thanh district’s social insurance agency June 2017 Department of Business Administration Graduate School of Soongsil University Bui Minh Thanh Thesis for the Degree of Master Research into customer satisfaction with public services of Thach Thanh district’s social insurance agency June 2017 Department of Business Administration Graduate School of Soongsil University Bui Minh Thanh Thesis for the Degree of Master Research into customer satisfaction with public services of Thach Thanh district’s social insurance agency A thesis supervisor: Lee Sang Ho Thesis submitted in partial fulfillment of the requirements for the Degree of Master June 2017 Department of Business Administration Graduate School of Soongsil University Bui Minh Thanh To approve the submitted thesis for the Degree of Master by Bui Minh Thanh Thesis Committee Chair Gim, Gwang Yong (signature) Member Park, Jong Woo (signature) Member Hoang Dinh Hai (signature) June 2017 Graduate School of Soongsil University ACKNOWLEDGEMENT I would like to thank my supervisors Prof Lee Sang Ho, who gave me valuable assistance and advices in completing the dissertation and the Master of Business Administration course I also thank to all lecturers and staff of Soongsil University and Hong Duc University for their supports Thanks to Thach Thanh district‟s Social Insurance Agency in Thanh Hoa province and my workmates who provided me information to fulfill the research Specially thanks to my wife and my friends for their encouragement during the time to study and the research TABLE OF CONTENTS ABSTRACT vi CHAPTER INTRODUCTION 1.1 Research background 1.2 Purposes of the research 1.3 Research subject and scope 1.4 Research methodology 1.5 Research structure CHAPTER LITERATURE REVIEW 2.1 Service quality 2.1.1 Concept of service quality 2.1.2 Factors of service quality 2.2 Customer satisfaction 13 2.2.1 Concept of customer satisfaction 13 2.2.2 Researching model of customers‟ satisfaction 14 2.3 Empirical literature on service quality and customer satisfaction in the public sector 20 2.4 Research model 27 - i- 2.5 Summary of chapter 30 CHAPTER RESEARCH METHODOLOG Y 31 3.1 Research process 31 3.2 Sampling 34 3.2.1 Overview of Thach Thanh social insurance agency 34 3.2.1.1 General information 34 3.2.1.2 Functions and duties 37 3.2.1.3 Some results of operations of the social insurance agency in Thach Thanh district in the past few years 38 3.2.2 Sampling method 41 3.3 Questionnaire 43 3.4 Analysis method 46 3.5 Summary of chapter 48 CHAPTER RESULTS AND DISCUSSTION 50 4.1 Data description 50 4.1.1 Respond rate 50 4.1.2 Characteristics of the respondents 51 4.1.3 Data description of customers attitude about public service quality of Thach Thanh social insurance agency 57 4.2 Exploratory factor analysis (EFA) 63 4.3 Testing the reliability of the scale 67 - ii - 4.4 Correlation and regression analysis 70 4.5 Testing the difference according to customers‟ personal characteristics 75 4.6 Discussion 76 4.7 Summary of the chapter 78 CHAPTER CONCLUSION AND SUGGESTION 79 5.1 Suggestion 79 5.1.1 Development orientation of Thach Thanh District‟s social insurance agency 79 5.1.2 Proposed solutions 81 5.2 Research conclusion 88 REFERENCES 90 APPENDICES 97 - iii - LIST OF TABLES [Table 2-1] Description of the variables and items 18 [Table 3-1] The result of receiving, resolving administrative procedures in 2014 38 [Table 3-2] The result of receiving, resolving administrative procedures in 2015 40 [Table 4-1] Characteristics of the respondents 51 [Table 4-2] The last time that respondents used insurance service 54 [Table 4-3] Kinds of social insurance that customers are using 54 [Table 4-4] Customer will use the service in the future 55 [Table 4-5] Form of contact exchange information with social insurance agent 55 [Table 4-6] Inportance level of factors affecting customers transaction 57 [Table 4-7] Results of KMO and Bartlett Tests of factors 64 [Table 4-8] KMO and Barlett's Test for Dependent Variables 65 [Table 4-9] Results of the overall variance analysis of dependent variables 66 [Table 4-10] Factor Matrix for dependent variables 66 [Table 4-11] Cronbach's Alpha testing of the scale 67 [Table 4-12] Results of variables reliability measurement 69 [Table 4-13] Analysis Result of the Correlations of the Variables: 70 [Table 4-14] Summary of regression model 72 [Table 4-15] ANOVAb 73 [Table 4-16] Model coefficients 73 - iv - Simple Procedures Wide trading network Ensuring transaction Facilities, amenities time customer service 3.2 Assess customer satisfaction on service quality: Please indicate how strongly you agree with these statements in the following table: Strongly unsatisfied; Somewhat satisfied; Unsatisfied; Somewhat unsatisfied; Satisfied; Neutral; Strongly satisfied Note: If you agree to what extent, circle at that level, if you select by mistake, please cross that choice and reselect at another level Code Agreement Level 1.RELIABILITY RE1 The administrative procedures of Thach Thanh social insurance agency are transparent RE2 Profile has no errors, lost or loss RE3 Service is deliveried as their commitments 7 7 RE4 RE5 RE6 Code Thach Thanh social insurance agency is the reliable place for customers to contact and to solve their problems The agency resolves customers‟ complaints responsibly Procedures to receive social insurance benefits are in accordance with law ASSURANCE - 102 - Agreement Level AS1 AS2 AS3 AS4 Code Staffs of the agency have peaceful and polite attitude; receive and pay records conveniently to customers without harassment Staffs have a high sense of responsibility in solving customers‟ inquiries Staffs are fluent, accurate in working process, causing confidence to customers Staffs serve equally to all customers RESPONSIVENESS 7 7 Agreement Level RES1 Various types of social insurance to the different customers RES2 Social insurance regime is consistent and fair RES3 Payment of social insurance is quickly and favorable RES4 Time to wait is short RES5 Time for resolving is reasonable RES6 Process is easy and understandable for customers Code EM1 EM2 EM3 EM4 EMPATHY When customers have a problem, the staffs of the agency expressed interest and facilitate a satisfactory settlement The staff is always friendly, enthusiastic and thoughtful Social insurance agency provide information promptly and accurately to customers Staff are always interested in customer requirements Agreement Level 7 7 EM5 Requirement of profile is not complicated EM6 Staffs receive feedback of customers sincerely - 103 - Code TA1 TA2 TANGIBLES Agency office is in convenient location, easily to find Facilities for customers service is good Agreement Level 7 The information, documents, forms and TA3 regulations of the agency is detailed, clear, understandable and available to customers TA4 Code SA1 SA2 Time for customer service is resonable CUSTOMER SATISFACTION Agreement Level Satisfied with the administrative procedures of the social insurance agency Satisfied with the competence of the social insurance agency SA3 Satisfied with the staffs proficiency SA4 Satisfied to come and use the service of the agency I will come to the agency when I need the social insurance service I will continue to use the service of the agency in the future SA5 SA6 Thank you for your time! - 104 - APPENDIX RESULTS OF CRONBACK’S ALPHA ANALYSIS Appendix 2.1: Cronbach’s Alpha for variables belonging to a group Reliability Cronbach's Alpha N of Items 0.78 Item-Total S tatistics - 105 - Scale M ean if Item Scale Variance if Deleted Item Deleted Corrected Item- Cronbach's Alpha Total Correlation if Item Deleted RE1 20.07 5.109 522 630 RE2 20.05 5.518 677 713 RE3 20.08 5.504 568 707 RE4 20.17 4.780 771 676 RE5 20.17 5.077 685 703 RE6 20.13 5.234 697 711 Appendix 2.2: Cronbach’s Alpha for variables belonging to a group Assurance Reliability Statistics Cronbach's Alpha N of Items 745 Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Total Correlation if Item Deleted AS1 9.07 725 540 695 AS2 9.07 650 663 550 AS3 9.31 715 515 726 - 106 - Item-Total Statistics Scale Mean if Scale Variance if Corrected Item- Cronbach's Alpha Item Deleted Item Deleted Total Correlation if Item Deleted AS1 9.07 725 540 695 AS2 9.07 650 663 550 AS4 9.08 876 667 675 Appendix 2.3: Cronbach’s Alpha for variables belonging to a group Responsiveness Reliability Statistics Cronbach's Alpha N of Items 885 Item-Total Statistics Cronbach's Scale Mean if Item Deleted Scale Variance if Corrected ItemItem Deleted Total Correlation Alpha if Item Deleted RES1 8.30 1.712 764 857 RES2 8.52 2.049 725 831 RES3 8.16 1.852 857 770 RES4 8.09 1.768 856 789 RES5 8.12 989 786 857 RES6 8.37 1.905 798 741 Appendix 2.4: Cronbach’s Alpha for variables belonging to a group Empathy - 107 - Reliability Statistics Cronbach's Alpha N of Items 810 Item-Total Statistics Scale Mean if Scale Variance if Corrected Item- Item Deleted Item Deleted Cronbach's Alpha Total Correlation if Item Deleted EM1 15.88 6.499 749 795 EM2 15.77 6.015 746 775 EM3 15.86 6.014 718 780 EM4 15.55 6.236 658 693 EM5 15.04 6.465 797 723 EM6 15.37 6.879 766 712 Appendix 2.5: Cronbach’s Alpha for variables belonging to group Tangibles Reliability Statistics Cronbach's Alpha N of Items 948 Item-Total Statistics Cronbach's Scale Mean if Item Deleted Scale Variance if Corrected ItemItem Deleted - 108 - Total Correlation Alpha if Item Deleted TA1 6.49 2.576 884 830 TA2 6.62 2.630 892 923 TA3 6.35 2.236 835 854 TA4 6.49 2.725 899 719 Appendix 2.6: Cronbach’s Alpha for variables belonging to a group Satisfaction Reliability Statistics Cronbach's Alpha N of Items 836 Item-Total Statistics Scale Mean if Item Deleted Scale Variance if Corrected ItemItem Deleted Total Correlation Cronbach's Alpha if Item Deleted SA1 15.41 5.284 714 780 SA2 15.60 5.864 698 787 SA3 15.57 6.544 521 832 SA4 15.63 6.045 543 829 SA5 15.87 5.453 786 675 SA6 15.46 5.439 723 777 - 109 - APPENDIX 3: RESULTS OF EXPLORATORY ANALYSIS Appendix 3.1: Result of Total Variance Explained in FEA Total Variance Explained Extraction Sums of Squared Initial Eigenv alues Compo nent Total 9.594 % of Cumulativ e Variance % 41.713 41.713 Loadings Total 9.594 Rotation Sums of Squared Loadings % of Cumulativ e Variance % 41.713 - 110 - 41.713 Total 5.952 % of Cumulativ e Variance % 25.877 25.877 2.749 11.952 53.665 2.749 11.952 53.665 3.819 16.605 42.482 2.069 8.995 62.660 2.069 8.995 62.660 2.938 12.774 55.256 1.668 7.252 69.912 1.668 7.252 69.912 2.599 11.299 66.555 1.267 5.509 75.421 1.267 5.509 75.421 2.039 8.867 75.421 Extraction Method: Principal Component Analysis Appendix 3.2: Results of the factorial rotation matrix in the exploratory factor analysis Rotated Component Matrix a Component RE1 770 RE2 732 RE3 844 RE4 748 RE5 602 RE6 847 AS1 792 AS2 870 - 111 - AS3 767 AS4 945 RES1 939 RES2 934 RES3 705 RES4 606 RES5 716 RES6 829 EM1 828 EM2 636 EM3 585 EM4 786 EM5 729 EM6 791 TA1 652 TA2 840 TA3 793 TA4 708 Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization a Rotation converged in iterations - 112 - APPENDIX TESTING THE DIFFERENT ACCORDING TO RESPONDENTS’ CHARACTERISTICS Appendix 4.1: Testing the difference according to customers’ gender Group S tatistics Satisfaction Gender N M ean Std Deviation Std Error M ean M ale 89 3.7969 85657 08094 Female 101 3.9541 93082 09403 Independent S amples Test - 113 - Levene's Test t-test for Equality of M eans for Equality of Variances F Sig t df Sig M ean Std 95% Confidence (2- Differe Error Interval of the tailed nce Differe Difference ) Satisfa Equal ction 115 734 nce Lower Upper -1.274 208 204 -.15721 12338 -.40044 08602 -1.267 198.680 207 -.15721 12406 -.40186 08745 variances assumed Equal variances not assumed Appendix 4.2: Testing the diffe rence according to customers’ age Test of Homogeneity of Variances Satisfaction Levene Statistic 4.882 df1 df2 Sig 187 338 ANOVA Satisfaction Sum of df M ean Square F Sig Squares Between Groups Within Groups Total 290 041 78.01 187 181 78.3 190 239 924 Appendix4.3: Testing the difference according to customers’ monthly income - 114 - Test of Homogeneity of Variances Satisfaction Levene Statistic df1 9.101 df2 Sig 186 000 ANOVA Dependent Variable: Satisfaction Sum of df M ean Square F Sig Squares Between Groups 45.487 15.162 Within Groups 121.290 186 589 Total 166.776 190 25.752 000 Multiple Comparisons Dependent Variable: Satisfaction Dunnett t (2-sided)a M onthly M ean Std Income Difference Erro Lower Upper (I-J) r Bound Bound Under Above 12 million million – under Above 12 million million – under Above 12 12million million -1.49583* -.63812* -.47366* Sig .176 00 28 153 00 70 165 01 72 95% Confidence Interval -1.9089 -1.0827 -.9983 -.2779 -.8620 -.0853 * The mean difference is significant at the 0.05 level a Dunnett t-tests treat one group as a control, and compare all other groups against it Appendix4.4: Testing the difference according to kinds of insurance Group S tatistics - 115 - (I) T h Kinds of N M ean Std Deviation Std Error M ean insurance Satisfaction Compulso 134 5.6453 91675 09545 56 5.5645 93535 09343 ry Voluntary Independent S amples Test Levene's Test T-test for Equality of M eans for Equality of Variances F Sig t df Sig M ean (2tailed ) Satisfa Equal ction 105 634 Std 95% Confidence Differe Error Interval of the nce Differe Difference nce Lower Upper -1.234 134 2045 -.15721 12338 -.40044 08602 -1.211 198.680 206 -.15721 12406 -.40186 08745 variances assumed Equal variances not assumed - 116 -