(Luận văn) the impact of customer satisfaction, service quality and brand image on customer loyalty towards the restaurants of the tourist village in ho chi minh city

t to ng MINISTRY OF EDUCATION AND TRAINING ACKNOWLEDGEMENTS UNIVERSITY OF ECONOMICS - HOCHIMINH CITY hi ep I would like to express my appreciation to Dr Tran Ha Minh Quan for his w n motivation, support This thesis would not be completed without his support, lo ad enthusiasm He transferred professional knowledge of research methodology to y th me has improved my research skills and provided useful guidance throughout my ju yi academic career pl al n ua I greatly appreciate to the board of managers in Van Thanh Tourist Village, Tan NGUYỄN MINH HẬU Cang Tourist Village who allowed me to conduct the survey at these restaurants n va fu ll I would like to thank the customers at the restaurants of the Tourist Village in Ho oi m ChiTHE Minh City for their participation of effective data collection IMPACT OF CUSTOMER SATISFACTION, z vb interview z I at nh SERVICE QUALITY AND BRAND IMAGE ON greatly thanks to Mr Nguyen Van Cuong, who spent hours with me for the CUSTOMER LOYALTY k jm ht TOWARDS THE RESTAURANTS OF THE IN HO CHI MINH CITY Lastly,TOURIST I offer my regardsVILLAGE to all of those who supported me during the research om MASTER’S THESIS l.c gm Ho Chi Minh, Viet Nam an Lu April, 11th, 2012 n va ey t re th Nguyen Minh Hau Ho Chi Minh City -2012 t to ng MINISTRY OF EDUCATION AND TRAINING hi ep UNIVERSITY OF ECONOMICS - HOCHIMINH CITY w n lo ad ju y th yi NGUYỄN MINH HẬU pl n ua al va n THE IMPACT OF CUSTOMER SATISFACTION, SERVICE QUALITY AND BRAND IMAGE ON CUSTOMER LOYALTY TOWARDS THE RESTAURANTS OF THE TOURIST VILLAGE IN HO CHI MINH CITY ll fu oi m at nh z z k jm ht vb om an Lu Ology Code: 60.34.05 l.c MASTER IN BUSINESS ADMINISTRATION gm MASTER’S THESIS th ey Ho Chi Minh City -2012 t re PhD TRẦN HÀ MINH QUÂN n va Supervisor t to ABSTRACT ng hi ep Nowadays, together with the social economic improvement, the living standard is increasing and having lots of restaurants operating in Ho Chi Minh City To w n satisfy the customers’ needs, restaurants try to improve their quality of service and lo ad find out the better ways to attract more customers But it seems to be inefficient to y th keep old customers and attract new customers Why does inefficient state happen ju yi and last for a long time in restaurant industry? The researchers pay attention to pl find the reason for the problem and discover the main factors influencing to al n ua customer loyalty in restaurant industry va On the other hand, one of the interesting tourist types is the Tourist Village It n exists as the resort or the simpler type: restaurant If resorts mainly exist in the fu ll provinces, restaurants of the tourist village popularly exist in Ho Chi Minh city m oi The restaurants of the tourist village possess some advantageous points compare nh to the normal restaurants, such as: having a large square, can connect luxurious at z structure of the restaurant to the use of air, atmosphere and tree building But z ht vb even though, possessing these advantages, the number of customers come to the jm restaurants of the tourist village have also decreased Whether may It be k influenced by the common rules which have affected to restaurant industry or gm having another factors aiming at the tourist village not? This is a practical l.c question and to supply a correct answer requires a research to show full of om theoretical side, practical side an Lu This thesis was conducted aiming at solving these problems and used interview A th loyalty ey quality and the brand image of the restaurant have positive impact of customer t re Village The results reveal that customer satisfaction, the components of service n restaurant of Van Thanh Tourist Village, The restaurant of Tan Cang Tourist va main survey was undertaken with a sample of 205 customers in two sites: The t to Based on the findings, it is recommended that the restaurants of the tourist village ng in Ho Chi Minh city should consider the long term strategy as well as increasing hi marketing program ep w Key words: n lo Customer loyalty, customer satisfaction, the brand image of the restaurant ad ju y th yi pl n ua al n va ll fu oi m at nh z z k jm ht vb om l.c gm an Lu n va ey t re th t to TABLE OF CONTENTS ng hi Acknowledgements I ep Abstract II w Table of contents III n lo ad CHAPTER I: INTRODUCTION y th ju 1.1 Research background yi 1.2 Problem definition pl ua al 1.3 Research questions & objectives .4 1.4 Research delimitation n n va 1.5 Research methodology and research design ll fu 1.6 Significance of the research oi m 1.7 Thesis structure .6 nh at CHAPTER 2: LITERATURE REVIEW & THEORETICAL MODEL z z 2.1 Loyalty concept vb 2.2 Review of previous articles and theses on customer loyalty 14 ht k jm 2.3 Service quality concept 17 gm 2.4 Customer satisfaction concept .19 l.c 2.5 The brand image concept .22 om 2.6 Impact of service quality, customer satisfaction, restaurant image on customer 2.7 Factors contributing to customer loyalty 28 n ey t re 2.9 Theoretical model and hypotheses 30 va 2.8 The conceptual framework .29 an Lu loyalty 27 3.1 Research process 32 3.2 Measurement 34 th CHAPTER 3: RESEARCH METHODOLOGY t to 3.3 Preliminary survey 37 ng 3.4 Sampling method 39 hi 3.5 Data analysis method .39 ep w CHAPTER 4: DATA ANALYSIS AND RESULTS n lo 4.1 Descriptive data analysis .40 ad 4.2 Measure assessment .41 y th ju 4.3 Hypotheses testing 44 yi 4.4 The regression model .44 pl n ua al 4.5 Interpretation and Discussion 45 n va ll fu CHAPTER 5: CONCLUSION & IMPLICATIONS oi m 5.1 Overview 47 5.2 Main findings 48 nh at 5.3 Theoretical implications 50 z z 5.4 Managerial implications 51 vb 5.5 Future research .53 ht k jm References 54 gm Appendix .61 om l.c List of tables 72 an Lu n va ey t re th t to CHAPTER I: INTRODUCTION ng hi 1.1 Research background ep w When Viet Nam joint WTO in 2007, Viet Nam became a central point for tourist n lo visiting because of its natural atmosphere and beautiful sight as well as ad characteristic cuisines To attract tourist around the world, hotel and restaurant y th ju industries play an important role on bringing value to customers If hotel supplies yi values related to destination for tourist visiting, restaurant sends characteristic pl ua al cuisines for tourist As a result, hotel industry has a close relationship to restaurant industry because they aim at one objective as tourist Take this rules, lots of resorts n n va had opened to supply both of hotel and restaurant services Normally, resorts set ll fu up at places where are near to beach and resorts focus on tourist who has the oi m demand on enjoying beautiful landscape and natural atmosphere Restaurant seems to be one of a small part of resorts to serve customer about cuisine, and hotel plays nh at a central point to make profit for resort because travelers tend to book room on z z hotel over night during several days vb But in Ho Chi Minh City, resorts have individual characteristic where restaurant ht k jm services also play dominant role not less than hotel services The reason is due to gm the demands of customers In table 1.1, the number of respondent who visit to Ho l.c Chi Minh city by attractive side is 43% and is smaller than the respondent who om visit to other province As a place in which have many small rivers and lack of an Lu mountain or beach, Ho Chi Minh City has not a dominant point about beautiful sight compare to many provinces in which have beach or mountain but Ho Chi th respondent who visit to the tourist village by attractive side is 36% This is a small ey city had grown and can be seen as a type of resorts In table 1.2, the number of t re Italian, Japanese, Thai and Chinese For this reason, tourist village in Ho Chi Minh n food and cuisines from around the globe, including French, Indian, Mexican, va Minh city can be thought as a place where tourist can enjoy delicious Vietnamese t to percentage comparing to the respondent of who visit to star hotel and it implies ng that tourist village has not attractive landscape for visitors hi In table 1.3, the structure of average expenditure out of tour for foreign visitors in ep the tourist village shows that expenditure to food is 48.3% as the highest value w compared to the expenditure to food of other accommodations This means that in n lo tourist village, restaurant which supplies food and beverage play an important ad source of profit compared to other hotels which have restaurant component y th ju Although tourist village mainly focus on cuisine services which create a large yi percentage of its profit but tourist can enjoy more values in here rather than pl ua al normal restaurant Tourist village include restaurant which possesses a large square and hotel as well as yacht service, fish hunting service Because of its n n va sophisticated structure, all of its service values have an impact on customer ll fu visiting but restaurant service play a central point to attract customer Although, oi m restaurant is a part of supply chain of tourist village, but restaurant also compete strongly with other restaurant Especially, there are lots of restaurant in Ho Chi nh at Minh city which provide cuisines service not only Vietnamese characteristic but z z also Asian or Europe characteristic To survive in this competition, restaurant on vb tourist village should reposition its value on two dimensions: ht k jm The first, the restaurant manager should define customer demands Understanding gm customer demands as well as analyzing factors influencing to customer loyalty is a l.c key to make restaurant’s success om The second, the restaurant manger should define restaurant strength and character very important and it requires define their brand image on customer perception an Lu in a relationship with other services of Tourist village Defining their character is th Dogdubay (2008) studied the determinants of customer loyalty by emphasizing on ey what main impact on loyalty in restaurant industry Cevded Avcikurt and Murat t re manager making their solution Previous research on customer loyalty focuses on n what factors influence in loyalty as well as to supply information for restaurant va There have been many studies on customer loyalty in restaurant industry to clarify t to the importance of food, service quality, ambiance, convenience Rasha Alli Eliwa ng (1993) focused on the image of restaurant to customer loyalty hi Beside, there has been study on customer loyalty in the tourist village of Viet Nam ep country Nguyen Thi Tuyet Loan (2011) studied the impact of service quality, w customer satisfaction on customer loyalty in the tourist village of Da Lat province n lo This study had also pointed out that some factors have influence in customer ad loyalty in the tourist village, including price, service quality and customer ju y th satisfaction yi So far there has been no research on customer loyalty in restaurant of the tourist pl ua al village To approach the tourist village, determinants of customer loyalty in restaurant can be different from the result of previous research because of its n n va characteristic It is also necessary to research on customer loyalty in restaurant on ll fu the tourist village in Ho Chi Minh city so as to out line marketing strategies, oi m increase the profit of restaurant and so far create the compared advantages of the tourist village at nh z z 1.2 Problem definition ht vb k jm In table 1.4, the number of tourist foreigner respondent who decide to visit gm Vietnam by friends, relations in the tourist village is 18.2% and is smaller than l.c other accommodations This means that the impression of visitors to the tourist om village is not high and they are not willing to introduce to their relations or friends as well as to the restaurant of the tourist village an Lu It is a signal to consider about the customer loyalty forwards to the tourist village value makes strong impression for visitor forwards to the tourist village compared th landscape is not an advantage side of tourist village On the other hand, cheap ey village is smaller than other accommodations so it can be considered that t re cheap commodities The percentage of respondent to landscape of the tourist n forwards to the tourist village is 30.3 percent for landscape, and 30.3 percent for va In table 1.5, the number of tourist foreigner respondent on best impression t to to other accommodations So, beautiful side or cheap value is whether a factor ng influencing to customer loyalty in the restaurant of the tourist village or not? hi On the other hand, in restaurant industry, a competition always exists and directly ep influences in lots of activities of restaurant Facing to competition, the restaurant w of the tourist village in Ho Chi Minh city is not outside from this rule In the n lo restaurant of Tan Cang tourist village, the restaurant managers try to reduce price ad of buffet and set menu to attract customer On the other hand, in the restaurant of y th ju Van Thanh tourist village, the restaurant managers improve the effectiveness of yi green areas policy to provide clean value for customers But following to the pl ua al internal statistic source of Tan Cang, Van Thanh tourist village (Table 1.6), during the time of price reducing and green areas policy taken, the total of revenue of n n va restaurant decreased slightly because of the amount of customer reducing So, oi m village in Ho Chi Minh city? ll fu what are factors which influence in customer loyalty in the restaurant of the tourist Another problem is that on the tourist village, restaurant is a part and when nh at managers need an investment, they face financial pressure Beside restaurant z z investment, manager must figure out what items need improving and should be vb invested As a result, with the limitation of financial source, what should managers k jm ht invest to restaurant to bring the most values for customer? gm Clearly, keeping customer, creating customer impression is not easy and it must be om restaurant manager on the tourist village finding out the best solution l.c considered carefully This thesis is to supply basic and useful information for an Lu 1.3 Research questions & objectives loyalty, the restaurant manager can make full solution strategies to attract 10 th village in Ho Chi Minh city? By defining the factors impacting on customer ey  What are the determinants of customer loyalty in the restaurant of the tourist t re out the answer for the following questions: n va To solve the problems which are mentioned above, this research aims at finding