(Luận văn) the impact of service quality on cuctomer satisfaction in the hopitality industry

t to MINISTRY OF EDUCATION AND TRAINNING UNIVERSITY OF ECONOMICS HO CHI MINH CITY - ng hi ep w n lo Nguyen Nguyen Xuan Thao ad ju y th yi pl ua al THE IMPACT OF SERVICE QUALITY n ON CUSTOMER SATISFACTION n va ll fu IN THE HOSPITALITY INDUSTRY m oi Differences between the viewpoint of foreign and nh at Vietnamese customers z z jm ht vb k THESIS OF MASTER OF BUSINESS ADMINISTRATION om l.c gm an Lu n va ey t re Ho Chi Minh City – 2012 t to MINISTRY OF EDUCATION AND TRAINNING UNIVERSITY OF ECONOMICS HO CHI MINH CITY - ng hi ep w Nguyen Nguyen Xuan Thao n lo ad y th ju THE IMPACT OF SERVICE QUALITY yi pl ua al ON CUSTOMER SATISFACTION n IN THE HOSPITALITY INDUSTRY n va ll fu Differences between the viewpoint of foreign and m oi Vietnamese customers at nh z Subject: Master of Business Administration k jm ht vb : 60340102 z Code SUPERVISOR: om l.c gm THESIS OF MASTER OF BUSINESS ADMINISTRATION an Lu Assoc Prof Dr NGUYEN DINH THO n va ey t re Ho Chi Minh City – 2012 I ACKNOWLEDGEMENTS t to ng hi This thesis was made during 06 months from March, 2012 It becomes a ep memory time in my life when having a lot of stress, difficulty and struggle between deadlines of job and study However, it has opened a vision for me about wild- w n knowledge which comes from many authors who stay around in the world, having lo ad different languages and cultures but bring me an amazing experience which I am y th grateful for ju yi Knowledge should be accumulated gradually during the school I would like pl to say thank you to all professors in the University of Economics Ho Chi Minh City, al n ua who already taught and trained me in MBA course va Knowledge also comes from the sharing of friends who were sitting the same n class or incidentally appointed the same group with me I thank you for their ll fu sharing m oi Especially, a great thank and special gratitude is addressed to Assoc Prof nh Dr Nguyen Dinh Tho, who directly instructs me throughout my thesis with his at z conscientiousness, patience and knowledge z ht vb Finally, I wish to thank my boss of EFS Company Ltd., and my family k jm members for all supporting me during my studying in University Ho Chi Minh City, October 31st 2012 Ho om l.c gm Nguyen Nguyen Xuan Thao an Lu n va ey t re II COMMITMENT t to ng hi I would like to commit that this thesis, “The impact of service quality on ep customer satisfaction in the hospitality industry: Differences between the w n viewpoint of foreign and Vietnamese customers”, was accomplished based on my lo ad research seriously and independently ju y th yi The data was collected from hotels and restaurants industry in Vietnam by pl conducted by the author n ua al the author in reality It has clear source Thus, the data was trustful handled and n va fu ll Nguyen Nguyen Xuan Thao m oi Ho Chi Minh City, October 31st 2012 at nh z z k jm ht vb om l.c gm an Lu n va ey t re III TABLE OF CONTENTS t to ng hi ACKNOWLEDGEMENT I ep COMMITMENT II w TABLE OF CONTENTS III n lo LIST OF TABLES V ad LIST OF FIGURES V y th ABSTRACT ju yi Chapter INTRODUCTION pl 1.1 Research Background al n ua 1.2 Research Motivation n va 1.3 Research Objectives ll fu 1.4 Research Scopes oi m 1.5 Structure of Research Chapter LITERATURE REVIEW, THEORETICAL FRAMEWORK nh at AND HYPOTHESES z 2.1 Service Quality z vb 2.1.1 The SERVQUAL Instrument ht jm 2.1.2 Applying SERVQUAL in the Hospitality Industry 10 k 2.1.3 Perceived Service Quality 11 gm l.c 2.2 Customer Satisfaction 14 om 2.3 Theoretical Framework and Hypotheses 16 2.3.1 Theoretical Framework 16 an Lu 2.3.2 Research Hypotheses 16 3.4 Data Analyze Procedure 22 ey 3.3 Data Collection Procedures 19 t re 3.2 Sampling Design 19 n 3.1 Research Methodology 18 va Chapter RESEARCH METHODOLOGY 18 IV 3.4.1 Reliability Analysis 22 t to 3.4.2 Descriptive Statistics 23 ng 3.4.3 Factor Analysis (FA) 23 hi ep 3.4.4 Multiple Linear Regression Analysis 24 Chapter ANALYSIS RESULT 25 w n 4.1 Respondents Demographics 25 lo ad 4.2 Reliability and Validity of SERQUAL Scales 26 y th 4.3 Dimensions of Service Quality in Hospitality Industry 28 ju 4.4 Overall Perceived Service Quality 31 yi pl 4.4.1 Correlation Testing 31 ua al 4.4.2 Multi-Linear Regression Analysis 32 n 4.5 Hypothesis Testing and Discussions 35 va n 4.6 Summary 45 fu ll Chapter CONCLUSIONS AND RECOMMENDATIONS 47 m oi 5.1 Summary of Findings 47 at nh 5.2 Practical Implications 48 5.3 Contributions of the Study 49 z z 5.4 Limitations and Future Research 50 vb jm ht REFERENCES 51 APPENDIX 55 k l.c gm APPENDIX 61 APPENDIX 64 om APPENDIX 67 an Lu n va ey t re V LIST OF TABLES t to ng Table 2.1 Five Dimensions of Service Quality 10 hi Table 2.2: The Summary of Research Hypotheses 17 ep Table 3.1: The Sources of Measurement Scale 20 w Table 3.2: Rules of Thumb about Cronbach‟s Alpha Coefficient Size 23 n lo Table 4.1: Demographic Characteristics of the Study 26 ad Table 4.2: Cronbach‟s Alpha Measures of Variables in the Study 27 y th Table 4.3 KMO and Bartlett's Test of Five Independent Variables 28 ju yi Table 4.4: Rotated Component Matrixa of Independent Variables 29 pl Table 4.5 KMO and Bartlett's Test and Component Matrix 30 al n ua Table 4.6 Correlation of Variables 31 va Table 4.7 ANOVAb for Construct 32 n Table 4.8 Model Summaryb of the Construct 33 fu ll Table 4.9 Coefficientsa of the Construct 34 oi m Table 4.10 Overall Perceived Service Quality 34 nh at Table 4.11 ANOVAb for Satisfaction 38 z Table 4.12 Model Summaryb of Satisfaction 38 z ht vb Table 4.13 Coefficientsa of Satisfaction 39 jm Table 4.14 Coefficientsa of the Construct for Vietnamese Customers‟ Group 41 k Table 4.15 Coefficientsa of Satisfaction for Vietnamese Customers‟ Group 41 gm l.c Table 4.16 Coefficientsa of the Construct for Foreign Customers‟ Group 43 om Table 4.17 Coefficientsa of the Satisfaction for Foreign Customers‟ Group 43 Table 4.18 Comparison Customers‟ Viewpoints 45 an Lu n va LIST OF FIGURES Figure 4.2 Research Framework for Foreign Customers Group 42 ey Figure 4.1 Research Framework for Vietnamese Customers Group 40 t re Figure 2.1 Theoretical Framework 16 ABSTRACT t to ng hi Vietnam is more and more attractive a lot of tourists from other countries in ep the world Since the life-style is developed rapidly, the customers have more demands on the services, especially in their enjoyable and leisure time The w n importance of service quality for business performance has been recognized not lo ad only in the literature but also in reality because it effects directly on customer ju y th satisfaction which leads to the profitability for an organization This study examined the relationship between the components of service yi pl quality, overall perceived service quality and customer satisfaction The al ua respondents were Vietnamese and foreign customers who stayed in hotels or spent n their dining in restaurants in Ho Chi Minh City, Vietnam The study used Statistic va n Package for Social Science (SPSS) to analyze data through Exploratory Factor fu ll Analysis (EFA) and regression analysis tools Firstly, the research proposed a m oi model to analyze the effect of service quality factors in the hospitality industry on nh overall perceived service quality The five service quality variables identified in this at z study were named as “tangibles”, “reliability”, “responsiveness”, “assurance” and z “empathy” The results indicated that “reliability” and “empathy” have strong vb jm ht positive effect on overall perceived service quality Secondly, the research k investigated the impact of overall perceived service quality on customer gm satisfaction Results showed that overall perceived service quality has a l.c significantly effect on customer satisfaction Finally, the research finding confirmed om that there are differences between the viewpoints of Vietnamese and foreign an Lu customers on service quality and its impact on their satisfaction differently Keywords: SERQUAL, Perceived Service Quality, Customer Satisfaction, n va Hospitality Industry, Vietnam ey t re CHAPTER t to INTRODUCTION ng hi ep 1.1 Research Background: The trend of world markets has changed significantly from agricultural to w n service markets In Vietnam, the service markets, especially the hospitality industry lo ad is more and more increasing the market share caused by the growth of tourism y th industry According to the report of Vietnam National Administration of Tourism ju yi (www.vietnamtourism.com, accessed on 20/05/2012) the revenue of tourism 2011 pl gains 130 trillion VND, increasing 30% over the previous year Vietnam tourism al n ua market has been received over million oversea tourists and served for 30 million va domestic customers in 2011 Till April 2012, the number of foreign tourists has n already reached 2.5 million, increasing 22.9% over the same period last year fu ll Vietnam government also proposes a planning of tourism in 2012 is that receiving m oi 6.5 million of foreign tourists (increasing 8.3% over 2011) and serving for 32 nh million of domestic customers (increasing 6.67% over 2011) In order to gain this at z target, many strategies for developing tourism industry have been given out such as z ht vb to appeal the investment on infrastructure; to open more the tourism trading jm promotion representative offices in China, Japan, Korea, Thailand, Australia, k Malaysia, France and Russia; especially Ha Long Bay just becomes the New gm World‟s Natural Wonders; last but not least all other industries, e.g hospitality l.c industry related to tourism should be reinforced and enhanced so that to bring the om most satisfaction to the tourists an Lu As all above factors, there are a lot of restaurants and hotels to be opened to the services and all the service businesses are trying their best to improve their ey Hilton Worldwide, Movenpick and so on The customers have more choices about t re restaurant groups to join this market in Vietnam such as Starwood, Park Hyatt, n provided by local suppliers, there are many famous international hotel and va serve for this demand Besides the services of accommodation and food are service quality in order to make customers more satisfied, and that can improve t to profitable to the firms Therefore, the viewpoint of customers (local and foreign ng ones) about service quality should be considered and defined how to match with the hi ep different levels of customer satisfaction To help the companies get more success and survival in today‟s competitive w environment, there are many researches to define about “quality”, “service quality” n lo “customer satisfaction” Research shows that quality is defined as “fitness for use” ad y th and “those product features which meet customer needs and thereby provide ju customer satisfaction” (Juran and Godfrey, 1999) Service quality leads to customer yi pl loyalty and attraction of new customers, positive word-of-mouth, employee‟s ua al satisfaction and commitment, enhanced corporate image, reduced cost and n increased business performance (Berry et al., 1989) Higher levels of service quality va n produce higher levels of customer satisfaction, which in turn lead to higher levels of fu ll customer patronage Customer service quality is a crucial source of distinctive m oi competence and often considered a key success factor in sustaining competitive at nh advantage in service industries (Palmer, 2001) In the hospitality industry, to exist in the intense competition, hospitality organizations look for ways that they can z z profitably differentiate themselves One of strategy is the delivery of high service vb jm ht quality (Stevens, Knutson & Patton, 1995) Research has supported that the basic principle that high quality goods and services are favored in the marketplace and k l.c gm has suggested that high service quality performance increases customer satisfaction (Anderson & Fornell, 1994) However, the concepts of service quality are difficult om to define, measure and maintain (Parasuraman, Zeithaml & Berry, 1985) In 1985, an Lu Parasuraman et al., defines service quality as a function of the differences between expectation and performance along ten major dimensions such as reliability, ey tangibles, reliability, responsiveness, assurance (combining communication, t re al.(1988) revises and defines the service quality in terms of five dimensions: n understanding/knowing the customer, tangibles In later research, Parasuraman et va responsiveness, competence, access, courtesy, communication, credibility, security,